Annual Report of the Federal Reserve Board, 1921

EIGHTH ANNUAL REPORT OF THE FEDERAL RESERVE BOARD COVERING OPERATIONS FOR THE YEAR 1921 WASHINGTON GOVERNMENT PRINTING OFFICE 1922 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 PART II. Reports of Federal Reserve Agents to the Federal Reserve Board... PART III. Recommendations of the Federal Advisory Council to the Federal Reserve Board for year 1921 Description of Federal Reserve districts PART I. TEXT OF REPORT: Changes in condition of Federal Reserve Banks 1 Comparison of changes in condition of member banks and Federal Reserve Banks 3 Changes in principal assets and liabilities of Federal Reserve Banks 11 Gold imports and exports during 1921 13 Condition of member banks in leading cities 18 Bank debits to individual accounts 24 Reserve ratio of Federal Reserve Banks 26 Changes in discount rates 30 Changes in rates of earnings of Federal Reserve Banks 41 Rediscounts between Federal Reserve Banks 42 Earnings and expenses of Federal Reserve Banks 45 Reserves for self-insurance and undetermined losses 50 Building operations of Federal Reserve Banks 51 Gold-settlement fund 58 State bank membership 59 Distribution of banking power between member and nonmember banks 62 Bank loans to farmers in the United States 63 Excessive borrowings of member banks 65 Check clearing and collection 68 Fiscal agency operations 73 Operations of branches of Federal Reserve Banks 79 Foreign exchange 81 Foreign branches of national banks 84 Foreign banking corporations 85 Trust powers of national banks 85 Board's organization and expenditures 86 Federal Advisory Council, meetings of 87 Conferences held by the Board 87 Kern amendment to Clayton Act 87 Amendments to the Federal Reserve Act 89 Fundamental principles of the Federal Reserve Act: No central bank 90 Disposition of earnings 91 Organization 91 Lending powers 91 Reserves 93 General powers and limitations 94 in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IV TABLE OF CONTENTS. TEXT OF KEPORT—Continued. Fundamental principles of the Federal Reserve Act—Continued. Page. No control over member bank loans 95 Federal Reserve note issues 96 Gold reserves and interest rates 98 Appendix A. Address of Hon. Sydney Anderson before Baltimore Chapter of American Institute of Banking 100 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 108 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 1921 for each Federal Reserve Bank 112 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 1921 for all Federal Reserve Banks combined 115 No. 4. Printed, shipped to each Federal Reserve Agent and to United States sub treasuries since organization of banks, and on hand in Washington on Dec. 31,1921, by denominations 118 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 Dec. 31, 1921, by denominations 120 No. 6. Issued and retired by each Federal Reserve Agent, by months during 1921, with totals for 1920 and 1919 122 , No. 7. Mutilated notes of each Federal Reserve Bank received and destroyed by the Comptroller of the Currency since organization of banks, by denominations 124 No. 8. Issued and retired by all Federal Reserve Agents combined during 1921 and 1920, with amounts outstanding as of Dec. 31, for 1921, 1920, and 1919, by denominations 125 No. 9. Received from and returned to the comptroller for destruction, and issued to and returned by each Federal Reserve Bank during 1921, also amounts outstanding at beginning and end of year, by denominations, as reported by each Federal Reserve Agent... 126 No. 10. Accounts of each Federal Reserve Agent at close of business, Dec. 31, 1921 129 No. 11. Interdistrict movement during 1921, with totals for 1920 and 1919. . 130 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 Dec. 31,1921, by denominations and districts 132 CURRENCY RECEIPTS AND PAYMENTS: No. 13. Received from and paid to member and nonmember banks by each Federal Reserve Bank, by months during 1921, with totals for 1920 and 1919 136 No.. 14, Received from and paid to member and to nonmember banks by each Federal Reserve Bank and branch during 1921, with totals for 1920 and 1919 139 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. V CONDITION OF FEDERAL RESERVE BANKS: Page. No. 15. Resources and liabilities of all Federal Reserve Banks combined, by weeks during 1921 141 No. 16. Detailed statement showing condition of each Federal Reserve Bank on Dec. 31, 1921 148 No. 17. Deposits, Federal Reserve note circulation, required reserves, excess reserves, and reserve percentage of all Federal Reserve Banks combined, by weeks during 1921 154 No. 18. Daily average figures of cash reserves, total earning assets, deposits, and Federal Reserve note circulation, also daily average reserve percentage, by months during 1921, 1920, and 1919 157 Discounted paper— No. 19. Average daily holdings of each Federal Reserve Bank, by months during 1921, with totals for 1920 and 1919 158 No. 20. Maturity distribution of amounts held by each Federal Reserve Bank on Dec. 28, 1921 160 No. 21. Maturity distribution of amounts held by all Federal Reserve Banks combined on the last report date of each month during 1921, and on the last Friday in 1920 and 1919 161 No. 22. Secured by United States bonds, Victory notes, Treasury notes, and certificates of indebtedness, held by all Federal Reserve Banks combined on the last report date of each month during 1921 162 No. 23. Secured by United States bonds, Victory notes, Treasury notes, and certificates of indebtedness held under discount for member banks in each district on Dec. 28, 1921, and Dec. 30, 1920 163 No. 24. Character of paper held by each Federal Reserve Bank on Dec. 31, 1921 164 No. 25. Character of paper held by all Federal Reserve Banks combined on the last day of each month during 1921, and at the end of 1920 and 1919 165 Purchased paper— No. 26. Average daily holdings of each Federal Reserve Bank, by months during 1921, with totals for 1920 and 1919 166 No. 27. Maturity distribution of amounts held by each Federal Reserve Bank on Dec. 28, 1921 167 No. 28. Maturity distribution of amounts held by all Federal Reserve Banks combined on the last report date of each month during 1921, and on the last Friday in 1920 and 1919 168 No. 29. Held by each Federal Reserve Bank on Dec. 31, 1921, and by all banks combined at the end of 1920 and 1919, by classes of accepting institutions 169 No. 30. Held by all Federal Reserve Banks combined at the end of each month in 1921, by classes of accepting institutions 170 United States securities— No. 31. Average daily holdings of each Federal Reserve Bank, by months during 1921, with totals for 1920 and 1919 171 No. 32. Held by each Federal Reserve Bank on Dec. 31, 1921, with totals for 1920 and 1919, distributed by classes and maturities ] 72 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

VI TABLE OF CONTEXTS. CONDITION OF FEDERAL RESERVE BANKS—Continued. Page. Earning assets, all classes— No. 33. Average daily holdings of all classes of earning assets of each Federal Reserve Bank, by months during 1921, with totals for 1920 and 1919 " \ 173 Rates of earnings— No. 34. Annual rates (per cent) of earnings on total earning assets of each Federal Reserve Bank, by months during 1921, with totals for 1920 and 1919 174 No. 35. Annual rates of earnings on discounted and on purchased bills held by each Federal Reserve Bank from 1916 to 1921 175 No. 36. Annual rates of earnings on discounted paper held by each Federal Reserve Bank, by months during 1921, with totals for 1920 and 1919 \ *~ 177 No. 37. Annual rates of earnings on purchased paper held by each Federal Reserve Bank, by months during 192±, with totals for 1920 and 1919 178 No. 38. Annual rates of earnings on United States securities held by each Federal Reserve Bank, by months during 1921, with totals for 1920 and 1919 179 DISCOUNT AND OPEN MARKET OPERATIONS: Total volume—all classes— No. 39. For each Federal Reserve Bank during 192.1, with totals for 1920 and 1919, distributed by classes 180 No. 40. For all Federal Reserve Banks combined, by months during 1921, distributed by classes 181 No. 41. For each Federal Reserve Bank, by months during 1921, with totals for 1920 and 1919 \ 182 Discounted bills— No. 42. Discounted by each Federal Reserve Bank, by months during 1921, with totals for 1920 and 1919 183 No. 43. Discounted by each Federal Reserve Bank during 1921, by months and maturities 184 No. 44. Volume by States, also number of member banks in each State and number accommodated through discount of paper during 1920 and 1921 188 No. 45. Discounted by each Federal Reserve Bank for national banks and for State bank and trust company members during 1921, 1920, and 1919 190 No. 46. Member banks' collateral notes and rediscounted paper secured by United States Government obligations discounted by each Federal Reserve Bank, by months during 1921, with totals for 1920 and 1919 191 No. 47. Trade acceptances discounted by each Federal Reserve Bank, by months during 1921, with totals for 1920 and 1919 192 No. 48. Bankers' acceptances discounted by each Federal Reserve Bank, by months during 1921, with totals for 1920 and 1919.. 193 No. 49. Discounted by each Federal Reserve Bank during 1921, by normal rates of discount charged 194 No. 50. Discounted by all Federal Reserve Banks combined each month during 1921, by normal rates of discount charged 195 No. 51. Number of banks in ea~h district accommodated through the discount of paper, by months during 1921, with totals for 1920 and 1919 * 196 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. VII DISCOUNT AND OPEN MARKET OPERATIONS—Continued. Discounted bills—Continued. Page. No. 52. Average rate (per cent) charged on all bills discounted by each Federal Federal Reserve Bank, by months during 1921, with average rates by banks and months for 1920 and 1919 197 No. 53. Average maturities (in days) of all bills discounted by each Federal Reserve Bank, by months during 1921, with average maturities by banks and months for 1920 and 1919 198 Purchased bills—bankers' and trade acceptances— No. 54. Purchased in open market by each Federal Reserve Bank, by months during 1921, with totals for 1920 and 1919 199 No. 55. Purchased in open market by each Federal Reserve Bank during 1921, by maturities, with totals for 1920 and 1919 200 No. 56. Purchased in open market by all Federal Reserve Banks combined during 1921, by months and maturities, with totals for 1920 and 1919 201 No. 57. Purchased in open market by each Federal Reserve Bank during 1921, distributed by classes, with totals for ] 920 and 1919. 202 No. 58. Purchased in open market by all Federal Reserve Banks combined during each month in 1921, distributed by classes, with totals for 1920 and 1919 203 No. 59. Purchased by each Federal Reserve Bank during 1921, by rates of discount charged 204 No. 50. Purchased by all Federal Reserve Banks combined during each month in 1921, by rates of discount charged 205 No. 61. Average rate (per cent) charged on all bills purchased by each Federal Reserve Bank, by months during 1921, with average rates by banks and months for 1920 and 1919 206 No. 62. Average maturities (in days) of all bills purchased by each Federal Reserve Bank, by months during 1921, with average maturities by banks and months for 1920 and 1919 207 Inter-Federal Reserve Bank accommodation— No. 63. Rediscounts and sales of bills between Federal Reserve Banks during 1921—Chronological table 208 Summary, by months, of bills rediscounted and sold by each Federal Reserve Bank during 1921 214 Summary for the year, by Federal Reserve Banks 215 No. 64. Sales of bankers' acceptances to other Federal Reserve Banks.. 217 United States securities— No. 65. United States bonds and notes purchased by each Federal Reserve Bank, by months during 1921 218 No. 66. United States certificates of indebtedness purchased by each Federal Reserve Bank, by months during 1921, with totals for 1920 and 1919 219 GOLD SETTLEMENT FUND: No. 67. Summary of transactions Jan. 1 to Dec. 31, 1921 221 No. 68. Clearings and transfers, by weeks during 1921 222 No. 69. Federal Reserve Agents' gold fund 227 CLEARING OPERATIONS: No. 70. Operations of the Federal Reserve clearing system during 1921, with totals for 1920 and 1919 . / T 228 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

VIII TABLE OF CONTENTS. PAR LIST: Page. No. 71. Number of member banks, and of nonmember banks on par list, in each Federal Reserve district, as of the 15th of each month in , 1921 • 230 EARNINGS AND EXPENSES: No. 72. Earnings and expenses of each Federal Reserve Bank 232 Receipts and disbursements of the Federal Reserve Board 236 State banks and trust companies admitted to membership 240 Abstract of condition reports of State banks and trust company members 267 Debits to individual accounts at clearing-house banks 276 Foreign exchange rates 298 Fiduciary powers granted to national banks 302 Questionnaire on exercise of fiduciary powers by national banks 316 Banks granted authority to accept drafts and bills of exchange up to 100 per cent of capital and surplus 331 Personnel and salaries: Salaries of officers and employees of Federal Reserve Banks 334 Salaries of officers and employees of Federal Reserve Board 336 Salaries of national bank examiners 339 Directory: Federal Reserve Board 342 Officers and directors of Federal Reserve Banks 342 Federal Advisory Council 349 Regulation B of the Federal Reserve Board 349 Amendments to Federal Reserve Act 351 Suggested amendment to Clayton Act—Report of the Clayton Act committee.. 352 Supreme Court decision in Atlanta par clearance case 357 Reply to Senate resolution relative to expenses of Federal Reserve Banks 359 CHARTS. Reserves, earning assets, and Federal Reserve note circulation of Federal Reserve Banks 2 Bank credit, gold reserves, and volume of business, 1919-1921 7 Reserve ratio: Of the 12 Federal Reserve Banks combined 28 Of each Federal Reserve Bank (actual and adjusted) 156 Map showing, by States, the percentage of nonmember banks to total number of banks 63 Foreign exchange index 84 Currency received from and paid to member and nonmember banks by the Federal Reserve Banks 138 Movement of earning assets of all Federal Reserve Banks combined during 1920 and 1921 146 Deposits, Federal Reserve note circulation, cash reserves, and reserve ratio of all Federal Reserve Banks combined during 1920 and 1921 147 Average daily holdings of discounted bills and of other earning assets by each Federal Reserve Bank during 1920 and 1921 159 Annual rates of earnings on discounted and purchased bills, 1916-1921 176 Accommodation received from or extended to other Federal Reserve Banks: For the 12 Federal Reserve Banks combined 213 For each Federal Reserve Bank 216 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. IX, PART II, Page. Reports of Federal Reserve Agents to the Federal Reserve Board 495-678 District No. 1—Boston 485 District No. 2—New York 597 District No. 3—Philadelphia 525 District No. 4—Cleveland 543 District No. 5—Richmond 555 District No. 6—Atlanta 571 District No. 7—-Chicago 589 District No. 8—St. Louis 605 District No. 9—Minneapolis 623 District No. 10—Kansas City 637 District No. 11—Dallas 651 District No. 12—San Francisco 667 PART III, Recommendations of the Federal Advisory Council, 1921 681 Description of Federal Reserve districts 693 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

THE FEDERAL RESERVE BOARD. DECEMBER 31, 1921. A. W. MELLON, ex officio, W. P. G. HARDING, Governor. Secretary of the Treasury, Chairman. EDMUND PLATT, Vice Governor D. R. CRISSINGER, ex officio, ADOLPH C. MILLER. Comptroller of the Currency. CHARLES S. HAMLIX. JOHN R. MITCHELL. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD. Washington, February 20, 1922. SIR: In compliance with the requirements of section 10 of the Federal Reserve Act, the Federal Reserve Board submits herewith its eighth annual report, which covers operations for the calendar year ended December 31, 1921. In its last annual report the Board commented upon the fact that the year 1920 had been essentially a period of reaction. The course of world events throughout a period of five years preceding had brought about in the United States the most notable advance in prices and the greatest expansion of business ever known. It was realized all the while, however, that there would be, sooner or later, reaction and readjustment, These came during the year 1920, worldwide in scope and irresistible in force, and made that year memorable as one of the most eventful in economic history. The sequence of economic events culminating in the disastrous crisis of 1920 and the functioning of the Federal Reserve System in this trying emergency have been the subjects of an extensive study by the Joint Congressional Commission of Agricultural Inquiry. The report of the commission will doubtless shed much light upon the unprecedented conditions with which the credit and banking organization of the country, and more particularly the Federal Reserve System, has had to deal. Up to the end of the year the commission had not made its final report, but some of the credit problems considered by it were discussed in a public address made in December last by the chairman of the commission and this address is included in this report as Appendix \. CHANGES IN CONDITION OF FEDERAL RESERVE BANKS. The great economic reaction was not, however, reflected immediately in the operations of the Federal Reserve System, for while the fall in commodity prices, which began in the case of silk in March, 1920, had extended in a spectacular degree to practically all commodities by October, the expansion of the loans of the Federal Reserve Banks continued until early in November and of Federal Reserve note issues until December 23, 1920, when the total amount in circulation increased to $3,404,000,000,'a record high mark. During the year 1921, there was, until early in December, an almost continuous decline in the loans and other earning assets of the Federal Reserve Banks and in Federal Reserve notes in circulation, while Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. at the same time there was a steady and practically continuous" increase in the gold reserves of the banks. In order to present a clearer view of the changes which have taken place in the position of the Federal Reserve Banks, there is appended a chart which shows the note circulation, cash reserves and the movement of the earning assets of all Federal Reserve Banks for the years 1919, 1920, and 1921, This chart shows at a glance the effect upon the Federal Reserve Banks of the great expansion in business and prices which took place during the year 1919, of the reaction which occurred in 1920, and of the depression and steady liquidation which has marked the year 1921. RESERVES, EARNING ASSETS AND F.R.NOTE CIRCULATION OF FEDERAL RESERVE BANKS (DAILY AVERAGE FIGURES FOR EACH MONTH, 1919-1921) — CASH RESERVES — — — A /?. NOTE CIRCULATION • • • • TOTAL EARNING ASSETS — — —TOTAL DISCOUNTS PAPER SECURED BY U. S. GOVERNMENT OBLIGATIONS I . . 1 , , 1 • , I , . I , . I J F. M. A. M. J. J. A. S. 0. N. D." J. F. M. A. M. J. J. A. S. 0. N. D. J. F. M. A. M. J. J. A. S. 0. N. D. 1919 1920 1921 RESERVES, EARNING ASSETS, AND FEDERAL RESERVE NOTE CIRCULATION. [Daily average figure? for each month 1919-1921; in thousands of dollars.] I Paper j Federal secured by j '•• Total Cash \ Reserve j United Total earning reserves, j note I States Gov- discounts, i assets. I circulation, i ernment ; obligations. 1919. January 2,164.167 2,540,642 ; 463,130 1,734,655 ; 2,213,511 February i 2,183,641 2. 462,941 ! 529,693 1,763,226 ! 2,225,686 March '• 2,202,368 2, 503,350 - 673, 760 1,861,532 : 2,318, 422 April i 2,224,948 2, 547,535 | 725,153 I 1,919,461 ! 2,341,724 May I 2,246,087 2, 534,112 i 797,295 1,973,926 2,391,774 June 2,248, 265 2,500,969 ! 630,557 |1,842,112! 2,323,992 July ! 2,176,779 2, 523,960 | 613,294 |1, 867,920 2,478,863 August I 2,146,003 2, 544,357 I 579,765 | 1,801,887 2,442,627 September 2,157,932 2, 627,295 i 519.082 ' 1,777,334 2,471.515 October ; 2,207,386 2,738,394 i 662.083 2,073,416 2,709,330 November ! 2,185,149 2, 812,247 I 695,473 2,145,631 2,907,803 December i 2,149,653 2, 955,476 ! 525, 251 2^157,021 3. 034, 224 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. RESERVES, EARNING ASSETS, AND FEDERAL KESERVE NOTE CIRCULATION—Contcl. [Daily average figures for each month 1919-1921; in thousands of dollars.] Paper Federal secured by Total res C e a r s v h es. Re n s o e te rve St U at n es it G ed ov- dis T c o o t u a n l ts. earning circulation. ernment obligations. 1920. January 2,098,498 2,887,846 1,427,011 2,142,788 3,043,952 February... 2,053,422 2,946,863 1,486,723 2,298,917 3,153,994 March 2,058,293 3,040,440 1,455,981 2,386,537 3,211,936 April 2,084,077 3,071,754 1,435,582 2,440,376 3,191,945 May 2,078,822 3,089,737 1,473,800 2,537,551 3,255,859 June 2,102,985 3,113,949 1,342,606 2,461,022 3,209,650 July 2,118,899 3,143,465 1,264,848 2,519,044 3,200,973 August 2,127,305 3,165,222 1,297,880 2,605,113 3,233,862 September.. 2,139,280 3,275,535 1,255,498 2,677,052 3,329,481 October 2,162,178 3,336,768 1,205,915 2,782,055 3,390,089 November.. 2,182,795 3,327,632 1,191,305 2,776,457 3,375,395 December.. 2,221,573 3,342,520 1,169,492 2,730,360 3,313,502 1921. January 2,287,274 3,177,656 1,077,266 2,536,105 ; 3,034,655 February 2,343,537 3,068, 578 1,011,039 2,408,792 ' 2,869,233 March I 2,403,470 2,979,486 1,001,626 2,301,628 i 2,735,784 April 2,485,079 2,870,672 941,237 2,139,982 ! 2,527,253 May I 2,541,647 2,787,379 844,416 1,966,646 I 2,353,794 June. " 2,605,779 2,682,560 699,689 1,817,749 2,175,175 July 2,655,179 2,604,750 624,823 1,725,162 ! 2,012,699 August 2,740,388 2,512,348 558,152 1,554,702 l 1,841,596 September. 2,836,396 2,493,910 513,262 1,445,690 | 1,740,474 October... 2,905, 727 2,456,121 485,330 1,376,914 | 1,640,740 November I 2,964,419 2,402,442 461,705 1,232,576 i 1,520,283 December 2,994, ~~~ 2,416,096 476,161 1,185,432 i 1,517,194 COMPARISON OF CHANGES IN CONDITION OF MEMBER BANKS AND FEDERAL RESERVE BANKS. There is also submitted another chart, covering the same period, which shows the loans and investments of member banks in the principal cities of the country, the bill holdings and gold reserves of the Federal Reserve Banks, and the volume of business as indicated by debits to individual accounts of reporting banks (all expressed as index numbers with the average for the year 1919 as the base). The curve showing the volume of business, as indicated by bank debits, reflects the business expansion which took place in the second half of the year 1919 and the liquidation which began in the early part of 1920 and continued until the middle of 1921. It will be noticed that the reduction in the loan accounts of the reporting member banks during the first half of 1921 offsets approximately the expansion of their loan accounts in the last half of the year 1919. It will be observed, however, that during the year 1920 the curve of credit of the member banks, as indicated by their loans, is altogether different from the curve showing the volume of business, as indicated by debits to individual accounts. The decline in prices and the falling off in business, which took place during the year 1920, is not at all reflected in the loan accounts of the member banks. There was no reduction in their loans until late in the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 REPORT OF THE FEDERAL RESERVE BOARD. On the other hand, the banks were extending their credit lines until the peak of the crop-moving season had been passed. Agriculture was in distress and commerce and industry generally were in the midst of the crisis of readjustment and urgently needed assistance in effecting the transition from the period of expansion through the period of liquidation. That assistance was extended by the member banks and by the Federal Reserve Banks, as both credit curves clearly show, and in this way liquidation of business was moderated and the rout, which would have been inevitable but for the steadying influence of the credit machinery of the Federal Reserve System, was held within the limits of an orderly retreat. In comparing the member bank credit curve with that of the Federal Reserve Banks, it is clear that, while both curves are influenced by the same changes in the business situation, their response is by no means the same. The chart shows that the reserve bank curve moves much more rapidly and sharply than the member bank curve, which appears flat by comparison with the reserve bank curve -and gives a less lively impression of business and credit developments and of the changes which were in process. The relative flatness of the member bank credit curve during the year 1920, as compared with the reserve bank curve, is due to several circumstances. The volume of member bank loans is far greater than their rediscounts, which constitute the greater part of the bill holdings of the Federal Reserve Banks. Because the base figure is much smaller for Federal Reserve Banks than for member banks, the same change in absolute amounts results in a much larger change in percentage and consequently in a much sharper movement in the reserve bank curve than in the member bank curve. In addition to the difference in the base figure, there are other influences tending to make the member bank curve relatively flat. The larger proportion of the loans of member banks at any time represents loans incident to the ordinary volume and requirements of business and thus exercises, even in times of marked changes in the business situation, a steadying influence on the member bank curve. The situation of the reserve banks is different. Their loan account does not reflect the normal volume of credit in use, for under normal conditions their rediscount transactions are not large. It is not the absolute amount of credit in use but the ebb and flow of credit which affects the loan account of the Federal Reserve Banks. A Federal Reserve Bank plays little part in the ordinary credit business of the country. It does not deal with borrowers directly. It can not lend directly to the customers of member banks, nor does it, in fact, take the initiative in making loans to a member bank for the purpose of enabling the member bank to distribute the funds so secured to its customers. A Federal Reserve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 5 Bank lends to a member bank against transactions already made, for the purpose of enabling the member bank to restore its reserve to the legal requirement, after the reserve has been impaired or is about to be impaired, because of increased loans and deposits. The relations of the business man, be he farmer, merchant, or manufacturer, are with his member bank, and the member bank in turn deals with the reserve bank only as occasion may require. A Federal Reserve loan is not the first but the second line of credit. The expansion and contraction of the reserve bank loan account are once removed from the expansion and contraction of the volume of business, as reflected in commercial bank loans. Normally, the Federal Reserve System is called into activity when the supply of ordinary credit facilities is inadequate. It supplements, temporarily, the resources of its members. It is the extent of the deficiency in the lending power of the member banks, as measured by their ability to meet credit requirements, that is reflected in the upward or downward movement of the Federal Reserve loan account. When business is speeding up beyond their normal credit capacity, commercial banks must resort to the Federal Reserve Banks for accommodation. When business is receding and liquidating in a period of economic reaction, slackening of credit requirements will result in a marked reduction of borrowings from Federal Reserve Banks. Therefore, the reserve bank curve reflects the fluctuations in the volume of credit required, rather than the actual total volume of credit in use. On a relative basis the reserve bank curve has a tendency to magnify what is going on in times either of rapid expansion or of acute liquidation. In other words, it gives an exaggerated or heightened impression of these movements. There are still other circumstances of a temporary nature tending to reduce the range of fluctuations in the member bank loan curve as compared with the reserve bank credit curve. It will be recalled that the loan and investment account of banks throughout the country was greatly expanded during 1918 by heavy investments in Liberty bonds and certificates of indebtedness as well as by accommodations to subscribers to Government war loan issues. During 1919 and 1920 the process was reversed. There was constant liquidation of bank holdings of Government securities and of loans secured by these obligations. Reporting member banks' holdings of Government securities dropped from $3,267,147,000 on May 2, 1919, to $2,000,983,000 on January 2, 1920, and to $1,312,186,000 on January 7, 1921. On December 28, 1921, however, the reporting banks held $1,469,323,000 of Government securities, or $157,137,000 more than at the beginning of the year, the increase corresponding to the banks' holdings of United States Treasury notes which were first issued on June 15. 85227—22 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

0 REPORT OF THE FEDERAL RESERVE BOARD. 1921. Member banks' loans secured by Government obligations, which amounted to $1,020,384,000 on December 26, 1919, had declined to $908,908,000 on December 31, 1920, and to $512,520,000 on December 28, 1921. The liquidation in the loan and investment account of the member banks from these sources has, therefore, been very considerable, although it does not appear to be reflected in the movement of the member bank curve of credit in 1920. That curve was ascending in spite of liquidation from these sources, but it is reasonable to assume that but for this liquidation it would have ascended much more, for it appears that the credit released by the liquidation of war loan securities and paper was used to expand the agricultural, commercial, and industrial loan accounts of the banks. During the winter of 1920-21, there appeared an influence of an opposite character, namely, the so-called "frozen credit," by which term is meant credit which has been carried beyond the time when the transactions which gave rise to the credit should normally have liquidated themselves. Large volumes of goods produced in 1920 were carried by producers for lack of satisfactory markets. Prices were falling, markets were collapsing, and there was congestion of goods at points of primary production and distribution. In many cases, the owners of these goods had to be carried along. There is no means of approximating the amount of these so-called " frozen credits," but there is reason to believe that a year ago they constituted an alarmingly large proportion of the total loans and discounts carried by the commercial banks of the country and that in some sections, at least, they still constitute a very substantial part of the total. Because of these unliquid loans, the member bank loan curve indicates a more gradual and moderate liquidation. It was this retarded or orderly liquidation which kept the curve from descending as swiftly as would have been the case had the liquidation been influenced merely by the volume of current business transactions. The sharp and prolonged decline in the reserve bank curve of credit throughout the year 1921, and the liquidation which it reflects, can not be understood without reference to the great amount of gold which during the past 12 months has come into the country and into the Federal Reserve Banks. The gold holdings of the Federal Reserve System increased from $2,059,333,000 on December 30, 1920, to $2,869,600,000 on December 28, 1921. while their bill holdings declined from $2,974,836,000 on December 30, 1920, to $1,294,073,000 on December 28, 1921. (The increase in gold reserves is partially offset bj- a decrease of $67,230,000 in reserves other than gold, i. e., silver and legal-tender notes.) Thus, it appears that about 44 per cent of the liquidation of the loan account of the Federal Reserve System may be attributed to its increased gold holdings. The in- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 7 fiiience of gold in Federal Reserve Bank liquidation is even greater in the case of the Federal Reserve Bank of New York, which has been the chief recipient of the imported gold. The bill holdings of that bank fell from $1,014,141,000 on December 30, 1920, to $260,370,000 on December 28, 1921. Its gold holdings for the same period show an increase from $466,267,000 on December 30, 1920, to $1,069,499,000 on December 28, 1921. After making allowance for the decrease of $99,360,000 in the bank's holdings of silver and legal-tender notes, it is found that the gold factor accounts for over 66 per cent of the liquidation in the loan account of tire Federal Reserve Bank of New York. BANK CREDIT, GOLD RESERVES AND VOLUME OF BUSINESS 1919-1921 ( INDEX NUMBERS; 1919 AVERAGE = 100) PER PER CENT CENT 150 150 14P 140 130 \ 130 120 % 120 110 110 100 •• s \ *— 100 90 \ "... 90 80 N ••* \ 80 70 70 60 60 so 50 40 30 LOAhiS AND INVESTMENTS OF REPORTING MEMBER BANKS 40 HOLDINGS OF F. R. BANKS 20 ._._._. QoLL7 RESERVES OF F R. BANKS 30 VOLJME OF BUSINESS (BANK DEBITS) 20 10 to 1919 1920 1921 Much of the gold which has come into the United States from abroad during the past year has been in liquidation of foreign indebtedness, while the balance has been employed in the creation of dollar exchange for future use. The greater part of this gold has been turned over by member banks to the Federal Reserve Banks in liquidation of their own indebtedness. Thus, the pronounced and continuous downward trend of the reserve bank loan curve during the past }^ear is shown to be due largely to foreign liquidation. The volume of business curve shows considerable steadiness after the first quarter of 1921 and the member bank curve of credit after the second quarter, but the Federal Keserve Bank credit curve continued its downward course in 1921, without abatement until the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 KEPORT OF THE FEDERAL RESERVE BOARD. middle of November, in quick and close response to the continuous upward course of the curve of gold reserves. It should, therefore, not be overlooked that as an indicator of the degree and rapidity of domestic liquidation the reserve bank credit curve is misleading, owing to the offsetting influence of the gold factor. The figures to which reference is made in this discussion appear below. BANKING DEVELOPMENTS, 1919-1921. [Averages based on weekly figures. Amounts in millions of dollars.] Federal Reserve Bank of All Federal Reserve Banks. New York. Federal Federal Bill Gold Reserve Bill Gold Reserve holdings. reserves. note cir- holdings. reserves. note circulation. culation. 1919. January 1,992 2,100 2,534 757 611 676 February.. 2,084 2,119 2,465 804 593 665 March 2,147 2,138 2,506 780 677 709 April 2,138 2,156 2,547 751 740 738 May 2,168 2,177 2,532 795 721 743 June 2,089 2,177 2,500 721 765 736 July 2,241 2,112 2,527 852 632 749 August 2,174 2,079 2,543 789 602 748 September. 2,136 2,086 2,627 718 605 753 October 2,436 2,136 2,742 883 587 756 November. 2,633 2,116 2,821 923 607 761 December.. 2,661 2,089 2,959 921 587 796 1920. January 2,720 2,037 2,892 963 557 775 February.. 2,867 1,979 2,962 1,018 535 810 March 2,856 1,936 3,041 997 498 834 April 2,853 1,950 3,075 949 552 838 May 2,934 1,943 3,092 981 555 848 June 2,857 1,964 3,115 968 538 857 July 2,875 1,975 3,145 985 518 860 August . 2,933 1,974 3,172 1,006 483 854 September. 2,973 1,975 3,277 956 490 862 October 3,071 1,998 3,338 1,014 477 872 November. 3,033 2,011 3,329 1,013 474 876 December.. 2,952 2,043 3,344 1,005 459 871 1921. January 2,692 2,092 3,159 938 415 805 M Fe a b rc r h uary.. 2 2 , ;5 4 7 4 0 4 2 2 , , 1 12 9 7 2 2 3 , , 9 0 8 5 6 4 9 8 2 2 2 6 4 5 1 0 3 0 7 79 9 1 3 April 2,241 2,283 2,871 676 650 764 May 2,039 2,370 2,784 608 682 723 June 1,865 2,439 2,682 479 822 690 July 1,735 2,503 2,594 432 846 657 August 1,566 2,598 2,505 396 862 638 September. 1.471 2,694 2,4S5 315 966 638 October 1,415 2,755 2,452 298 1,001 634 November. 1,296 2,825 2,397 248 1,044 636 December.. 1,288 2,865 2,415 271 1,045 655 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REFOKT OF THE FEDERAL RESERVE BOARD. BANKING DEVELOPMENTS, 1919-1921—Continued. [Averages based on weekly figures. Amounts in millions of dollars.] Reporting member banks. Ratio of Federal Accommo- Reserve Loans and Net de- dation at accommoinvest- mand Federal dation to ments.1 deposits. Reserve total loans Banks. and investments (percent). 1919. January 14,178 10,048 1,306 9 February.. 14,257 9,908 1,400 10 March 14,578 10,115 1,449 10 April 14.559 10,135 1,443 10 May 14,886 10,439 1,497 10 June 14,969 10,393 1,361 9 July 14,813 10,604 1,454 10 August 15,204 10,800 1,395 9 September. 15,577 10,984 1,383 9 October 15,961 11,140 1,660 10 November. 16,143 11,330 1,765 11 December.. 16,337 11,244 1,739 H 1920. January 16,670 11,576 1,803 11 February.. 16,630 11,482 2,019 12 March 16,813 11,600 2,053 12 April 16,935 11,546 2,069 12 May 16,941 11,506 2,085 12 June 16,926 11,499 1,981 12 July 16,876 11,466 2,005 12 August 16,862 11,299 2,072 12 September. 17,012 11,286 2,117 12 October 17,147 11,266 2,222 13 November. 16,827 11,027 2,200 13 December.. 16,692 10,823 2,132 13 1921. January— 16,402 10,816 1,947 12 February.. 16,131 10,583 1,878 12 March 16,021 10,404 1,792 11 April 15,733 10,201 1,601 10 May 15,466 10,194 1,421 9 June 15,319 10,182 1,267 8 July 15,020 10,037 1,167 8 August 14,876 9,921 996 7 September. 14,857 9,953 906 6 October 14,897 10,107 854 6 November. 14,792 10.210 723 5 December.. 14,797 10,242 697 5 1 Including rediscounts with Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 REPORT OF THE FEDERAL RESERVE BOARD. INDEX NUMBKRS OF BANKING AND BUSINESS DEVELOPMENTS : 1919-1921. [Average for 1919=100.] All Federal Reserve Banks. | Federa^s^0^Bank of Federal i Federal Bill j Gold Reserve i Bill Gold Reserve holdings, j reserves. note cir- j holdings, reserves. note circulation. I culation. 1919. January 99 97 94 95 92 February.. 100 95 i 100 92 90 March 101 96 ! 97 105 96 April 102 98 ! 115 100 May 102 97 | 112 101 June 103 96 119 100 July 100 i 97 106 98 102 August 97 ! 98 98 94 102 September. 95 I 101 ; 89 94 102 October 109 ! 101 105 • 109 91 103 November. 118 ! 100 108 \ 114 94 104 December.. 119 I 113 114 91 108 1920. January 122 96 ! 111 119 105 February.. 128 93 114 126 110 March 128 91 117 123 113 April 128 92 US ! 117 114 May 131 92 119 122 115 June 128 92 119 120 116 July 128 93 121 122 117 August 131 93 122 125 116 September. 133 93 ] 126 118 117 October 137 94 ! 128 126 119 November. 136 95 i 128 125 119 December.. 132 128 124 118 1921. January 120 99 121 116 65 109 February.. 115 100 117 114 64 108 March 109 103 115 102 78 108 April 100 107 110 84 101 104 May 91 112 I 107 75 106 98 June 83 115 103 59 128 94 July 118 I 100 53 132 August 122 j 96 49 134 September. 127 95 39 150 October 63 130 94 37 156 November. 58 133 92 31 162 December.. 58 135 I 93 34 163 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 11 INDEX NUMBERS OF BANKING AND BUSINESS DEVELOPMENTS : 1919-1921—Contd. [Average for 1919=100.] Reporting member banks. i L n a v o n e a d n st s - dem Ne a t nd A F t m i e c o o d c n o d e m r a a a - t - l V o n f o e b l s u u s m . s 2 i e - W in p s d h r a i e o l c x e l e e .8 - o f V a f c o m t l u u a r m n es u e . - 4 ments.1 deposits. Reserve Banks. 1919. January 94 95.8 101.6 February 94 92.9 86.7 March 96 85.6 94.8 92.6 April 96 97 83.3 95.8 93.7 May 98 101 88.7 97.6 95.7 June 99 92 95.1 97.6 95.9 July 98 100 98 102.5 103.3 101.9 August 101 102 94 103.4 106.6 107.2 September 103 104 93 101.2 103.8 103.8 October 106 105 112 104.6 105.2 104.4 November 107 107 119 113.5 108.5 102.2 December 108 106 117 116.4 112.3 102.1 1920. January 110 109 121 116.7 117.0 115.9 February 110 108 136 111.0 117.5 104.6 March 111 109 138 108.4 119.3 118.0 April 112 109 139 107.1 125.0 108.8 May 112 109 140 108.6 128.3 111.8 June 112 109 133 106.9 126.9 109.6 July 112 108 135 103.6 123.6 •102. 3 August 112 107 139 101.2 117.9 104.9 September 113 107 142 98.4 114.2 101.4 October 113 106 150 100.3 106.1 101.2 November 111 104 148 104.3 97.6 88.9 December 110 102 143 104.6 89.2 77.9 1921. January 109 102 131 104.7 83.5 78.3 February 107 100 126 98.2 78.8 75.0 March 106 98 121 90.1 76.4 80.6 April 104 96 108 85.0 72.6 75.8 May 102 96 96 85.9 71.2 79.3 June 101 96 85 85.9 69.8 75.9 July 99 95 79 85.2 69.8 68.5 August 98 94 67 81.6 71.7 81.5 September 98 94 61 80.2 71.7 81.0 October 99 95 57 82.3 70.8 90.6 November 98 96 49 88.9 70.3 December 95 97 47 90.5 70.3 1 Including rediscounts with Federal Reserve Banks. 2 As measured by debits to individual accounts, 3 months' moving averages. 3 United States Bureau of Labor Statistics. 4 Harvard Committee on Economic Research. CHANGES IN PRINCIPAL ASSETS AND LIABILITIES OF FEDERAL RESERVE BANKS DURING 1921. On December 28, 1921, the earning assets of all Federal Keserve Banks combined amounted to $1,535,851,000, as compared with £3,263,027,000 on December 30, 1920, a reduction of $1,727,176,000, or 53 per cent, and a reduction of $1,886,125,000, or 55 per cent, from the high point reached on October 15, 1920. This reduction in loans during the year was accompanied by a steady increase of gold reserves and an almost continuous reduction in Federal Reserve note circulation. Between January 7 and December 28, 1921, the dates of the first and last reports of the year, dis- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 REPORT OF THE FEDERAL RESERVE BOARD. counted bills held by all Federal Reserve Banks declined from $2,607,349,000 to $1,179,833,000, a decrease of 55 per cent. Of this decrease $617,343,000 represents a reduction in bills secured by Government obligations and $810,173,000 in other discounts. This reduction in loans continued despite the fact that the Federal Reserve Banks, beginning in April, made substantial and some of them repeated reductions in discount rates. With the discontinuance early in the year of preferential rates on paper secured by Government obligations, there was no longer the same incentive for member banks to offer to Federal Reserve Banks paper secured by Government obligations in preference to other eligible paper. Furthermore, the volume of Government securities outstanding was decreasing and easier conditions in the money market resulted in a larger proportion of the successive issues of Treasury certificates being taken for investment purposes. Of the total volume of paper under rediscount for member banks on December 28, only 41 per cent was paper secured by Government obligations, although the larger proportion of the direct borrowings of member banks, by means of notes maturing within 15 days, was secured by Treasury certificates or United States bonds. Notes fully secured by these obligations require no revenue stamps. Federal Reserve Bank holdings of bills purchased in open market declined steadily from $234,759,000 on January 7 to $19,424,000 on July 27. This decline reflected both the reduction in the volume of bankers' acceptances based upon foreign trade transactions, and the larger demand from commercial and savings banks, as well as from corporate and individual investors. Since the 1st of August open-market purchases of bills have shown a tendency to increase, although the total held has at no time exceeded $126,525,000. Negligible changes are shown in Federal Reserve Bank holdings of United States bonds and notes up to June 1. The increase in investments of this class since that time is due chiefly to purchases of new Treasury notes and Victory notes by some of the Federal Reserve Banks. The special one-year certificates held on deposit with the Treasury to secure Federal Reserve Bank note circulation, under the terms of the so-called Pittman Act, show no change during the first two months of the year. Since then there has been a gradual reduction, largely in connection with the retirement of Federal Reserve Bank notes, which have been replaced by the Treasury by silver certificates issued against newly coined standard silver dollars. The amount of these certificates of indebtedness held for the Federal Reserve Banks on December 28, 1921, was $119,500,000 against $259,- 375,000 on December 30, 1920. The variations during the year in the holdings of other Treasury certificates were due in part to tern- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 13 advances made by the banks to the Treasury, pending the collection of funds from depositary institutions. The gold reserves held by all Federal Reserve Banks on December 30,1920, were $2,059,333,000. There were large and constant increases until December 21, and the total gold reserves held by the banks on December 28, 1921, amounted to $2,869,600,000. During the same period other cash reserves, which include legal-tender notes, silver, and silver certificates, declined from $189,830,000 to $122,600,000. The increase in the gold reserve of $810,267,000 represents for the greater part gold imported from abroad. The following table shows in detail exports and imports of gold during the year 1921, from which it will be seen that net imports amounted to about 80 per cent of the increase in the holdings of gold by the Federal Reserve Banks. GOLD IMPORTS INTO AND EXPORTS FROM THE UNITED STATES DURING 1921, DIS- TRIBUTED BY COUNTRIES. Imports. Exports. \ustria $9,000 Belgium 3,760,711 Denmark 5,431,500 Finland. 600 France.. 190,688,144 Germany. 19,926,761 Greece 720,748 Italy ... 217,043 Malta 615,935 Netherlands 19,893,019 Norway 1, 534,985 Poland and Danzig . . . . 400 Portugal 23,040 Russia in Europe . . 85,000 Spain 3,319,281 $25,200 Sweden.. 66,355,925 2,643,013 Switzerland . . . 572,957 3,123 Turkey in Europe - 785,223 United Kingdom—England 202,091,349 Total Europe 516,031,621 2,671,336 Bermuda..... . *. 103,290 Canada 36,856,110 2,913,783 Costa Rica 876 976 Guatemala 565,038 TTondnrfl.s 203 690 Nicaragua 893,602 Panama . . . . 3,200,839 Salvador 799,675 Mexico 5,588,737 7,090,419 Cuba.. 363 730 250 844 British West Indies 665,204 Virgin Islands of the United States 150 000 Dominican Republic 26,509 Dutch West Indies 5,772,830 Total North America 56,066,230 10,255,046 Argentina 1 066 471 Bolivia .. * 9 786 Brazil 116^186 24 300 447 633 Colombia 11 941 685 Ecuador. 644,518 9,740 British Guiana 149 484 Dutch Guiana •-> 78 643 Peru 1 613 621 Uruguay 6 815 363 Venezuela 1,353,846 Total South America.. 24,237,236 34,040 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 REPORT OF THE FEDERAL RESERVE BOARD. GOLD IMPORTS INTO AND EXPORTS FROM THE UNITED STATES DURING 1921, DIS- TRIBUTED BY COUNTRIES—Continued. Imports. Exports. China $17,912,687 Chosen 4,860 British India.. 32,009,553 $1,179,000 Straits Settlements.. 70,000 Dutch East Indies.. 1.316,545 60,000 French East Indies. 6,013,842 Greece in Asia 1,350,587 Hongkong 5,660,825 9,621,655 Japan. 2,208,234 Palestine and Syria ' 886', 092 Turkey in Asia.' 1,448,793 Total Asia 68,812,018 | 10,930,655 Australia I 14,013,947 N" ew "Z ea'l and' . 2,956,314 I Tahiti Philippine Islands 1,399,808 Abyssinia 21,965 British West Africa 13,250 1 British South Africa 51,823 I Egypt 6,874,924 ! Portuguese Africa 788,312 Total, all countries. 691,267,448 23,891,377 Federal Reserve note circulation decreased rapidly and almost continuously throughout the year 1921, and the decline was not arrested even by the seasonal demands which usually result in a larger circulation during September, October, and November. Not until the demand for currency in connection with the Christmas holiday trade began to be felt did the volume of Federal Reserve notes in circulation showT any substantial increase. From a low point ($2,366,006,000) on November 30 to December 21 Federal Reserve note circulation increased by $81,554,000, but the total volume in circulation on December 28 ($2,443,497,000) was $961,434,000 below the maximum amount recorded on December 23, 1920, and $901,189,000 below the amount shown on December 30, 1920. Government deposits with the Federal Reserve Banks fluctuated between a maximum of $123,212,000 on March 23 and a minimum of $5,617,000 on January 12, the average for the year being $45,320,000, as compared with $36,000,000 in 1920 and $99,000,000 in 1919. Member banks' reserve deposits reflect closely the movement of customers' deposits with the member banks and show a rapid decline during the first three months of the year, when the member banks' deposits were falling off in a marked degree. Since, April the deposits carried by the member banks and their reserve deposits with the Federal Reserve Banks have remained fairly constant, notwithstanding continued liquidation of member bank loans. Federal Reserve Bank note circulation outstanding declined from $216,641,000 on December 31, 1920, to $83,690,000 on December 31, 1921. This decline parallels a somewhat larger reduction in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 15 amount of one-year certificates through redemption by the Treasury. It should be noted that the amount of this circulation on which Federal Reserve Banks are liable, and which appears in the condition .statements of these banks, represents the total amount of Federal Reserve Bank notes issued by the banks, less the amount for which bthey have turned over to the Treasury lawful money in reduction of liability. The amount of Federal Reserve Bank notes actually in circulation does not, therefore, correspond closely to this liability, as redemption of the notes by the Treasury does not necessarily take place when the Federal Reserve Banks' liability on them ceases. During the year the paid-in capital of the Federal Reserve Banks increased from $99,821,000 to $103,165,000, this increase being due in part to the increase in the capital and surplus of banks already members, and to a smaller extent to the acquisition of new members. The surplus of the banks, which stood at $202,036,000 on December 31, 1920, amounted to $215,523,000 on December 31, 1921. The Federal Reserve Bank of Dallas is the only one which does not show a surplus fund in excess of 100 per cent of its subscribed capital. A chart showing the movement during the past two years of the principal resources and liabilities of the Federal Reserve Banks .appears on page 2. The .table giv^n below shows the condition of all Federal Reserve Banks ^combined as of the last day of each month during 1921: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RESOURCES AND LIABILITIES OF ALL FEDERAL RESERVE BANKS COMBINED. [In thousands of dollars.] Cash reserves. Gold. Date. Legal-tender g G ol o d l d c e a r n ti d fi- F m G e o e d l n e d t r a s f e l u t R n tl d e e , - - G f o o l r d e i w gn ith F G ed o s e l e d r r a v w l e R it e h - d G em ol p d t i r o e n - Total. notes e , t c s . ilver, Total. cates. serve Board. agencies. agents. fund. Dec. 31,1920.. 261,900 357,278 3,300 1,277,875 162,433 2,062,786 190,914 2,2.53,700 Jan. 31,1921.. 201,832 463,177 3,300 1,264,753 170,598 2,103,660 216, 095 2,319,755 Feb. 28,1921. 220,694 541,674 1,222,071 163,646 2,148,085 215,390 2,363,475 Mar. 31,1921. 298,337 503,380 1,270,930 148,922 2,221,569 215,172 2,436; 741 Apr. 30,1921.. 353,191 492,336 1,311,794 165,362 2,322,683 182,929 2,505,612 May 31,1921.. 280,186 501,844 1,470,729 I 155,299 2,408,058 163,521 2,571,579 June 30,1921. 327, 276 404, 352 1,600,328 I 135,703 2,467,659 159,835 2,627,494 July 31,1921.. 395,590 433,698 1,611,689 102,062 2,543,039 153,993 2,697,032 Aug. 31,1921. 413,900 428,075 1,694,523 104,563 2,641,061 146,859 2,787,920 Sept. 30,1921. 442. 877 414,141 1,755,796 | 115,558 2,728,372 150,959 2,879,331 Oct. 31,1921... 450, 957 501,629 1,708,409 I 130,277 2,791,272 143,688 2,934,960 Nov. 30,1921.. 488,967 465,236 1,779,605 i 115,639 2,849,447 139,695 2,989,142 Dec. 31,1921.. 374,728 522,451 1,872,670 i 105,146 2,874,995 135,257 3,010,252 Earning assets. Bills discounted. United States securities. H Date. S S t e a U c t u e n r s i e t d G e d b ov y - All other. Total. I Bi m i l n ls a o r b p k o e e u n t g . ht Bo n n o d t s e s a . nd Ce O rt n if e i - c y a e te a s r of indebtedness. M wa u r n r i a c n ip ts a . l Total. bd ernment (Pittman All other. obligations. Act). ! Dec. 31,1920. 1,154,483 1,532,910 2,687,393 260,406 26,384 259,375 1,270 3,234,828 Jan. 31,1921. 1,040,367 1,416,750 2,457,117 163,700 25,866 259,375 1,909 2,907,967 Feb. 28,1921. 997,965 1,391,545 2,389,510 169,421 25,868 254,375 2,564 2,841,738 Mar. 31,1921. 971,100 1,262,006 2,233,106 119,340 25,740 247,375 3,817 2,629,373 Apr. 30,1921. 937,652 1,138,916 2,076,568 109,763 25,710 239,375 2,010 2,453,426 May 31, 1921. 787,244 1,120,669 1,907,913 75,457 32,938 226,875 2,249,851 June 30,1921 637,590 1,113; 760 1,751 350 40,223 34,520 215 875 2 05Q,757 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 31, 1921 1 577,774 1,063,838 i I,64i,6l2 ! 17,977 i 34,011 ! 209,375 979 1,903,954 Aug. 31, 1921 j 545,176 940,759 j 1,491,935 i 35,320 I 34,008 i 193,875 2,350 1,757,488 Sept. 30, 1921 j 496,844 916,169 1,413,013 i 45,042 36,088 i 172,375 19,367 1,685,885 Oct. 31, 1921 462,436 850,591 1,313,027 i 86,110 36,583 i 146,375 9,563 1,591,668 Nov. 30, 1921 476,360 705,941 i 1,182,301 | 72,954 32,253 I 126,000 46,291 1,459,866 Dec. 31, 1921 I 485,233 659,113 i 1,144,346 i 145,263 50,036 ! 113,000 70,492 1,523,516 Five per cent Date. pr B em an is k es. | i f r s u F e e n e d r d d v e e m e a r a g B p l a t a i R i o n n e n k s - t G o i r o n l i d n c u a tr s b a t r o n o d s a y i d t , . Un i c te o m lle s c . ted r A e l s l o u o r t c h e e s r . l r i e a s T b a o i o n l u i t d r t a c i l e e s s . Capi i t n al . paid Surplus. R G f e o r s v a e t n e r a r c v x n h e . m i d s e e f o n r t H j ^ r - j , I notes. O jsj H Dec. 31, 1920. 17,045 12,588 728,173 ' 7,771 6,254,105 99,821 202,036 Jan. 31, 1921. 18,232 12,296 524,726 7,480 5,790,456 100,107 202,036 ;"*''*!']"'*!! o Feb. 28,1921. 19,488 12,264 3,300 544,271 8,498 5,793,034 100,890 202,036 *i Mar. 31, 1921. 20,590 11,840 546,408 9,936 5,654,893 101,129 202,036 Apr. 30, 1921. 21, 894 11,171 487,655 11,290 5,491,048 101,559 202,036 May 31, 1921. 23,497 10,328 440,827 , 13,816 5,309,898 102,204 202,036 35*271 M June 30,1921. 24,852 10,111 528,000 14,377 5,255,591 102,182 213,824 40,751 W July 31, 1921. 25,880 9,702 462,249 16,422 5,115,239 102,326 213,824 45,503 Aug. 31, 1921. 27,509 9,539 455, 897 17,470 5,055,823 103,050 213,824 48,061 2 Sept. 30, 1921 29,476 9,004 508.257 16,216 5,128,169 103,043 213,824 51,654 2 Oct. 31, 1921. 31,289 7,999 459,569 16,689 5,042,174 103,027 213,824 53,938 2 Nov. 30, 1921 33, 241 7,941 534,872 19, 334 5,044,396 103,104 213,824 55, 119 Hrj Dec. 31, 1921. 35,258 7,805 556,072 18,206 5,151,109 103,165 215,523 Deposits. Note circulation. Date. Government. ba M nk e m re b se e r r ve All other. Total. F se e r d v e e r a n l o R te e s - . F s n e e o r d t v e e e s r — a B l a n R n e e k t - av D a i e t i e l f a e m b rr s i e l . d ity il A ia l b l il o i t t h ie e s r . account. liability. Dec. 31, 1920. 57,415 1,780,678 23,405 1,861,498 3,336,281 216,641 518,534 ! 19,294 o Jan, 31, 1921.. 28,627 1,721,895 25,932 1,776, 454 3,083,155 200,159 399,625 28,920 Feb. 28, 1921. 50,828 1,705,253 26,541 1,782,622 3,048,554 187,633 432,347 38,952 Mar. 31, 1921. 91,617 1,658,625 34,152 1,784,394 2,904,948 169, 885 442,481 50,020 Apr. 30, 1921. 31,664 1,666,509 34,041 1,732,214 2,844, Oil 154,944 397,621 58,663 May 31,1921. 39,080 1,601,634 29,910 1,670,624 2,751,869 143,706 373,025 31,163 June 30,1921. 43,446 1,603,845 27,926 1,675,217 2,648,086 132,568 426,493 16,470 July 31,1921. 32,680 1,625,123 25,245 1,683,048 2,549,626 125,046 378,142 17,724 Aug. 31, 1921. 46,809 1,618,901 25,044 1,690,754 2,481,466 109,864 389,362 19,442 Sept. 30, 1921 98,540 1,581,032 25,235 •1,704,807 2,482,427 100,378 450,893 21,143 Oct. 31, 1921. 43,086 1,658,627 31,185 1,732,898 2.421,426 85,515 408,333 23,213 Nov. 30, 1921, 45,913 1,670,362 26,555 1.742,830 2,366,006 75,862 462,795 24,856 Dec. 31, 1921. 95,951 1,753,217 26,914 1,876,082 2,409,392 83,690 447,614 15,643 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 REPORT OF THE FEDERAL RESERVE BOARD. CHANGES IX CONDITION OF MEMBER BANKS IN LEADING CITIES DURING 1921. Liquidation of member bank loans and investments, which began* about the middle of October, 1920, continued throughout the year under review, though it proceeded at a slower rate during the second half of the year, and during the last four months came nearly to a halt. This liquidation was accompanied by a corresponding reduction of borrowings from Federal Reserve Banks, as the; member banks utilized the funds released through the repayment of loans by customers to reduce the volume of rediscounts and collateral notes with the reserve banks. On January 7 the ratio of reserve bank accommodation to total loans and investments of member bunks was 12.4 per cent; at the end of the year (December28) it was 4.7 per cent. Demand deposits declined during the first eight or nine months of the year, though not as rapidly as loans, but during the last quarter deposits showed an upward trend. As a consequence the difference between the volume of loans and of deposits narrowed decidedly during the year, deposits being 83 per cent of loans on January 7 and' slightly more than 90 per cent on December 28. This narrowing of the gap between loans and deposits may be ascribed to a relaxation in the demand for Federal Reserve notes and to the gradual liquidation of " frozen " loans, the proceeds of which had long since been, withdrawn from the banks. The Board's weekly statements of condition of over 800 member banks in leading cities have now become one of the standard indicators of changes in the banking and general business situation., These banks include the largest institutions of the country, as may' be seen from the fact that on April 28 the aggregate paid-in capita! and surplus of the 821 reporting banks stood at $2,165,000,000, only about $131,000,000 less than the combined paid-in capital and surplus of all national banks, and constituted about 64 per cent of the paid-in capital and surplus of all the 9,698 member banks. On June 30, 1921, as well as on the same date in 1920, the reporting banks held about 70 per cent of the net demand deposits and an even larger proportion of the Government deposits of all member banks, about 45 per cent of their time deposits, over one-half of their investments in Government securities, and over 63 per cent of their total loans and investments (exclusive of fixed investments). The reduction from 829 to 806 for the 3^ear in the number of reporting institutions is almost entirely the result of bank mergers. Amounts of the leading items shown for each week are, therefore, on a fairly comparable basis and reflect the ebb and flow of bank credit in the urban centers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 19 Loans and discounts of reporting banks show a reduction of about 15 per cent, from $13,219,000,000 on January 7 to $11,220,000,000 on December 28. Of this reduction of almost $2,000,000,000 nearly onehalf was reported by the member banks in New York City. Little change is shown in the member bank holdings of paper secured by corporate obligations, though for the early part of the year this class of loans shows a larger percentage of reduction than other classes of loans. By the middle of April these loans had declined below $3,000,000,000 from $8,127,000,000 on January 7. During the following months they increased slightly, but show another decline during the late summer, the total on September 7 of $2,921,000,000 marking the low level for the year. Since then, with the gradual enhancement in values of corporate securities, the banks have increased their advances on these securities to a moderate extent, though the total on December 28 of $3,165,000,000 is slightly above the aggregate on January 7. Loans secured by Government obligations, b}r far the larger part secured by Liberty bonds and Victory notes, which stood at $868,- 000,000 on the first Friday of the year, decreased by about $200,000,- 000 during the first half of the year. A further reduction, though not so large, continued during the later months, the total on December 28, $513,000,000, showing a decline of $355,000,000 since the first Friday of the year. All other loans and discounts, composed largely of commercial loans proper, followed a similar course, the larger part of the decrease, viz, from $9,224,000,000 on January 7 to $8,- 167,000,000, taking place during the first six months of the year. At the close of the year the total stood at $7,542,000,000, or $1,682,000,- 000 below the total shown in the first weekly statement in the year. As against a reduction during the year in the amount of Government paper (i. e., paper secured by Government obligations) from $868,000,000 to $513,000,000, the reporting banks show a moderate increase in their holdings of Government securities. United States bond holdings were fairty steady until the latter part of October., after which time the member banks reported substantial investments in Liberty bonds. On December 28 total holdings were $950,000,000. an increase of $71,000,000 over the January 7 total. It should be noted that the totals shown in the subjoined table are inclusive of about $270,000,000 of prewar bonds held largely on deposit with the Treasury to secure national bank circulation. Victory note holdings, which at the opening of the year totaled about $206,000,000, show a gradual decline to $171,000,000 at the close of the year. Treasury certificate holdings, because of the great demand by corporate and individual investors, likewise show a downward course, interrupted Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 REPORT OF THE FEDERAL RESERVE BOARD. temporarily by increases following the dates of issue of loan and tax certificates. From $228,000,000 on January 7, certificate holdings increased to a maximum for the year of $339,000,000 on March 18, following the allotment on March 15 of about $482,000,000 of tax certificates. The low point for the year, $94,000,000, was shown on October 26, and at the end of the year these holdings totaled $223,- 000,000, a decline of $5,000,000 since the beginning of the year. Holdings of three-year Treasury notes, issued in the middle of June and September, declined from $152,000,000 on June 15 to $48,000,000 on September 7. Two weeks later, following the September 15 allotment of $391,000,000 of these notes, the banks reported a maximum total of $165,000,000, while about the close of the year these holdings stood at $126,000,000. Relatively small changes are shown in the holdings of other securities, largely corporate stocks and bonds, a total of slightly over $2,000,000,000 being maintained during most of the year. Moderate temporary increases early in June and about the middle of October are due probably to temporary investments in newly issued foreign and domestic securities. Total loans and investments (exclusive of fixed investments) show a practically continuous decline to June 15, the increase on that date being only temporary in character and due to increase in Treasury notes and certificates shown for the reporting banks on that date. Smaller increases on August 3, September 21, and November 2 are due to similar causes. On the whole the liquidation of earning assets was much less pronounced during the second part of the year than during the earlier part. The reduction in member bank loans and investments was reflected in liquidation of their borrowings from the Federal Reserve Banks. This liquidation, in view of the elimination of the preferential rates on Government paper, affected equally borrowings secured by Government obligations and rediscounts not so secured. By the middle of August total borrowings of the reporting banks from the reserve banks had declined from $2,278,000,000, the peak figure of November 5, 1920, and $2,050,000,000 at the beginning of the year, to less than $1,000,000,000. and since then there has been a further decrease to $698,000,000 at the close of the year. Total borrowings by reporting member banks from the Federal Reserve Banks, including rediscounted customers' paper and member banks' own collateral notes, constituted on the first Friday of the year 12.4 per cent of the reporting member banks' total loans and investments. On August 17 this percentage had decreased to 6.6 per cent, and by the end of the year to 4.7 per cent. It is apparent, therefore, that the member banks passed on to their reserve banks a large proportion of the funds received from their customers in payment of maturing loans and that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 21 at the end of the year only a comparatively small portion of the member banks' loan burden was carried by the reserve banks. The proportion so carried was, however, considerably greater than the average percentage of borrowed money to total loans before the Federal Reserve System was established, which in the case of national banks never exceeded 1.5 per cent, except in the fall of 1914, when it reached 2.6 per cent. Government deposits at the reporting banks show considerable fluctuations in connection with the fiscal operations of the Treasury. Loan and tax certificates allotted were paid for in the customary manner by credit to Government account on the books of the subscribing banks, and the high points in this account accordingly followed the dates of the tax and loan certificate issues. Other demand deposits (net) show a substantial decline during the earlier part of the year in connection with the general loan liquidation and the considerable withdrawals of balances by the country banks from their reserve city correspondents during that period. During the summer a further reduction of demand deposits took place, the total of $9,938,- 000,000 on August 17 showing a decrease of $1,000,000,000 from the total of January 7. On December 28 the total stood at $10,174,000,000, or $764,000,000 less than on the first Friday of the year. Time deposits show some growth during the latter part of the year. At the close of the year these deposits stood at $2,998,000,000, or $89,- 000,000 in excess of the total shown for the first Friday of the year. Reserve balances of the reporting banks, in keeping with the decrease in deposit liabilities, show a decline for the year from $1,357,- 000,000 to $1,267,000,000. Cash in vault shows a decrease from $389,000,000 at the beginning of the year to about $300,000,000 three months later; during the subsequent months the total was somewhat larger, constituting between 3 and 3.5 per cent of the reporting banks7 net demand deposits. 85227—22 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRINCIPAL RESOURCES AND LIABILITIES OF ABOUT 800 REPORTING MEMBER BANKS IN LEADING CITIES. to to [Amounts in millions of dollars.] Loans and discounts, and investments. Deposits. Accommodation at Fed- Loans and discounts.1 Investments. eral Reserve Banks. Re- Week Se- Unitc'd States securities. s w er it v h e Cash o d ending- Total. Total. o c m u G b e u b l r e . o r y i n e g n v s - d a t - - : s b c o t a u o o S t b n h r n c y e e d e - k d d r s s. th A e I Total. Fotal. Bonds. n t V o o i t r c e y - s. n T o r t e e a s s y . - d c C a n e e t i b e r e n s t t s - i e s f o . d i- f - s b O t c t o a o i s u t n n e c e h r d s d - k i e . - s s r , , R F B e e a s d n e e k r r v a s e . va in ult. m N d a e n e - t d. Time. m G e e r o n n v - t - . Total. j ! i I j j ' o m c u G e b u r b . e l o r n ' i y n e v s g - d t - . a- c O c u w u a u t n s n r h i e r s e s e e d - e e d d r - - . o H w tions. i tions. Jan. 7 16,561 13,219 868 3,127 9,224 3,342 1,313 879 206 228 2,029 1,357 389 10,938 2,909 119 2,050 843 1,207 14 16,397 13,054 834 3,084 9,136 3,343 1,293 870 201 222 2,050 1,317 360 10,928 2, 933 78 1,894 766 1,128 21 16,396 13,003 827 3,097 9,079 3,393 1,353 872 204 277 2,040 1,334 345 10,754 2,918 210 1,934 800 1,134 28 16,254 12,908 811 3,064 9,033 3,346 1,314 867 205 242 2,032 1,311 337 10,643 2,919 146 1,908 792 1,116 Feb. 4 16,224 12,905 809 3,075 9,021 3,319 1,295 875 198 222 2,024 1,320 333 10,653 2,924 102 1,900 773 1,127 11 16,110 12,819 795 3,058 8,966 3,291 1,277 866 203 208 2,014 1,309 314 !0,631 2,918 61 1,873 770 1,103 18 16,089 12,742 781 3,051 8,910 3,347 1,311 866 199 246 2,036 1,294 324 10,553 2,907 142 1,847 756 1,091 25 16,099 12,761 776 3,069 8,916 3,338 1,303 873 195 235 2,035 1,297 327 10,495 2,909 122 1,891 770 1,121 Mar. 4 16,052 12,759 786 3,069 8,904 3,293 1,268 866 194 208 2,025 1,279 328 ^, 518 2,920 91 1 832 748 1,084 11 15,975 12,672 770 3,047 8,855 3,303 1,260 866 192 202 2,043 1,302 330 10,535 2,910 41 1,854 764 1,090 18 16,076 12,622 761 3,033 8,828 3,454 1,397 866 192 339 2,057 1,252 321 10 376 2,926 348 1,719 769 950 25 lo,983 i 12,591 760 3,027 8,804 3,392 1,343 875 193 275 2,049 1,200 315 10,186 2 932 329 1,764 772 992 Apr. 1 15,902 12,551 756 3,046 8,749 3,351 1,292 871 190 231 2,059 1,263 300 10,271 2',925 326 1,685 709 976 H 8 15,777 12,457 752 3,002 8,703 3,320 1,281 872 191 218 2,039 1,252 317 10,204 2,923 304 1,631 697 934 W 15 15,756 12,357 740 2,974 8,643 3,399 1,352 875 191 286 2,047 1,270 308 10,263 ,924 329 1,581 694 887 O 22 15,629 12,281 738 2,973 8,570 3,348 1,300 870 191 239 2,048 1,240 313 10,127 2, 938 254 1,583 707 876 27 15,603 12,248 739 2,984 8,525 3,355 1,290 870 192 228 2,065 1,245 330 10,138 2,938 251 1,523 677 846 May 4 15,582 12,253 744 3,004 8,505 3,329 1,262 867 189 206 2,067 1,261 327 10214 2,941 210 1,533 656 877 11 15,489 12,195 736 2,994 8,465 3,294 1,258 872 189 197 2,036 1,258 340 10,252 2,947 168 1,506 686 820 18 15,447 12,097 715 3,018 8,364 3,350 1,295 871 188 236 2,055 1,254 326 10,156 3,045 248 1,314 544 770 25 15,345 12,028 707 3,020 8,301 3,317 1,261 870 188 203 2,056 1,252 326 10,153 3,053 139 1,329 560 769 June 1 15,298 11,997 716 3,037 8,244 3,301 1,233 863 186 184 2,068 1,258 318 10 276 2,936 74 1,385 846 8 15,189 11,888 677 3,017 8,194 3; 301 1,212 859 185 168 2,089 1,281 337 10,2L3 2,931 26 1,358 516 842 15 15,429 11,889 669 3,026 8,194 3,540 1,463 868 178 152 265 2,077 1,443 318 10,384 2,943 411 1,168 433 735 22 15,348 11,874 673 2,993 8,208 3,474 1,404 864 175 128 237 2,070 1,255 319 99S9 2,919 462 1,208 429 779 29 15,331 11,884 672 3,003 8,209 3,447 1,373 865 172 115 221 2,074 1,241 327 10,046 2, 933 387 1,215 413 802 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 15,194 11,819 j 647 3,005 8,167 3,375 1315 866 172 94 183 2,060 1,251 341 10,030 2,921 325 1 1.250 443 807 1 1 1 4 5 4 , , , 0 9 8 4 5 8 9 0 9 1 1 1 1 1 1 , , , 7 6 6 3 7 6 6 7 0 6 6 6 3 3 3 8 5 8 2 3, 9 0 9 8 0 7 6 4 5 g 8 8 ; * , 0 0 3 4 8 7 3 3 3 , } , 2 2 3 7 2 13 3 9 1 1 1 , 2 2 1 2 6 9 5 0 8 8 £ 8 6 6 6 6 2 7 1 1 1 6 6 70 6 7 8 7 5 1 0 8 1 1 9 2 5 9 2 5 2 2 2 , , , 0 0 0 4 4 3 8 5 9 1 1 1 , , , 2 2 2 2 3 4 7 8 7 3 3 3 1 3 1 9 7 6 1 1 1 0 0 0 , , , 0 0 0 2 8 0 9 6 2 2 2 2 , , , 9 9 9 0 0 0 3 5 5 2 1 9 7 2 5 8 4 1 1 t , , ; 1 1 5 1 1 5 1 3 4 3 3 3 9 9 7 5 6 5 7 7 7 5 5 3 6 8 8 Aug. 15,049 11J671 615 2979 8,077 3,378 1354 863 165 63 263 2,024 1,219 305 9,915 2,897 390 1,079 348 731 14,947 11,591 I 615 2955 8,021 3,356 1,333 868 166 59 240 2,023 1,200 310 9,895 2,899 381 997 I 352 645 14,842 11,539 I 620 2939 7,980 3303 1,283 868 165 57 193 2,020 1,216 299 I 9,938 2,900 242 979 ! 350 629 14,782 11,496 I 629 2V)27 7^940 3286 1,257 868 166 52 171 2,029 1,210 301 9,894 2,905 197 967 I 337 630 14,759 11,491 I 609 2923 7959 3268 1, 244 870 165 - 51 158 2,024 1,218 290 I 9,968 2,925 167 956 | 336 620 1 1 4 4, , 8 7 0 2 1 6 1 11 1 , , 5 4 6 8 3 2 j ! 6 5 0 9 5 9 2 2 9 9 2 6 1 6 7 7 ? 9 9 9 5 8 6 3 32 24 3 4 8 1 1 , , 2 2 2 2 1 5 8 8 7 6 0 8 1 1 6 6 2 3 53 1 1 4 4 1 1 2 2 , , 0 0 2 13 3 1 1 , , 2 2 3 2 6 9 3 31 08 0 S |1 9 0 , ,1 9 3 8 1 2 2 2 ,9 9 1 1 4 7 1 1 4 3 0 0 9 97 08 9 I 3 2 3 9 3 6 6 6 4 1 6 2 14,943 11,544 ! 593 2979 7972 399 1,402 870 166 165 201 1,997 1,189 301 9,833 2916 549 861 i 290 571 14,957 11,573 I 577 2997 7,999 3384 1, 362 878 166 149 169 2,022 1,242 305 9,866 2925 547 875 ! 280 595 Oct. 15,027 11,615 I 591 3019 8,005 3412 1,347 882 163 139 163 2,065 1,216 301 [9,926 2956 532 880 ! 291 589 O 11-12 15,001 11,602 i 584 3034 7984 3399 1, 336 879 161 138 158 2,063 1,244 310 j10,062 2942 481 900 | 304 596 19 14,831 11,477 572 3032 7,873 3354 1,261 880 156 118 107 2,093 1,255 305 !10,248 2961 140 829 | 262 567 26 14,729 11,422 ! 565 3041 7816 3307 1, 253 886 161 112 94 2,054 1,269 301 |10,192 2966 81 807 264 543 Nov. 2 14,849 11,398 I 546 3,070 782 3451 1,398 899 166 117 216 2,053 1,248 290 I10,180 2988 258 767 258 509 9 14,810 11,387 | 539 3069 7,779 3423 1, 364 899 164 124 177 2,059 1,239 309 10,175 2983 264 752 262 490 16 14,786 11,354 ; 540 3, 059 7755 3432 1, 358 906 163 121 168 2,074 1,269 303 |10,236 3003 214 702 239 463 23 14,752 11,310 527 3,077 7706 3442 1',374 912 162 122 178 2,068 1,268 307 10,191 3009 163 709 269 410 30 14,765 11,335 ! 522 3,114 7,699 3430 1,379 911 156 123 189 2,051 1,268 296 10,270 2998 128 683 276 407 Dec. 14,759 11,313 | 508 3,097 7,708 3446 1,389 930 161 123 | 175 2,057 1,242 315 10,208 2,990 115 683 263 420 14,786 11,303 ! 509 3, 155 039 3483 1,404 941 170 122 171 2,079 1,246 329 10,339 2,980 115 664 263 401 14,862 11,289 | 516 3,165 7608 3573 1,484 946 173 125 240 2,089 1,308 341 10,248 2,967 292 743 312 431 14,780 11,220 j 513 3,165 7542 3560 1,470 950 171 126 223 2,090 1,267 340 10,174 2,998 257 293 405 1 Including rediscounts with Federal Reserve Banks. i W o >> pi b to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 REPORT OF THE FEDERAL RESERVE BOARD. BANK DEBITS TO INDIVIDUAL ACCOUNTS. Volume of business, as measured by bank debits to individual accounts, in 1921 was about 17 per cent less than in 1920 and 12 per cent less than in 1919. These decreases compare with recessions in the wholesale price level of 37 per cent between 1920 and 1921 and 28 per cent between 1919 and 1921. The smaller declines in the volume of business than in wholesale prices may be due in part to the fact that retail prices have receded from the peak level much less than wholesale prices, since debits to individual accounts result from retail as well as from wholesale transactions. But in part the difference reflects an increase in business activity during the last four months of the year- 1921. The statement below shows the volume of debits for each month of 1919, 1920, and 1921 for all reporting centers, for ISfew York City, and for all other centers. Index numbers based on figures for corresponding periods in 1919 as 100 are also given. DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN 141 OF THE COUNTRY'S LEADING CLEARING HOUSE CENTERS. SUMMARY BY MONTHS DURING 1919, 1920, AND 1921. [In thousands of dollars.] All reporting centers. Index, corresponding month in 1919 1920 1921 1919=100. 1920 1921 January 34.438,286 44,727,408 37,560,002 130 109 February... 27,884,150 35,281,239 29,357,695 127 105 March 31,724,629 42,835,300 33,486,648 135 106 April 32.269,932 41,056,553 31,812,024 127 99 May 36,554,735 38,694,519 32,109,798 106 88 June 38,675,563 39,777,946 33,172,200 103 80 July 40,489,894 39,298,795 31,088,539 97 77 August 37,458,12-8 35,783,452 29,719,041 96 79 September.. 38,089,029 36,861,477 31,226,647 97 82 October 43,880,753 40,207,186 33,852,717 92 77 November.. 41,968,685 39,165,046 32.997,184 94 79 December.. 45,916,261 42,399,554 37,541,699 92 82 Total 449,350,045 476,088,475 393,924,194 106 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EEPOKT OP THE FEDERAL RESERVE BOARD. 25 DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN 141 OF THE COUNTRY'S LEADING CLEARING HOUSE CENTERS—Continued. SUMMARY BY MONTHS DURING 1919, 1920, AND 1921. [In thousands of dollars.] New York City. Index, corresponding month in 1919 1920 1921 1919=100. 1920 1921 January IS,118,628 23,636,058 20,032.528 130 111 February... 14,616,795 18,053,546 15,129,775 124 104 March 16,698,459 22,285,024 17,353,179 133 104 April 17.323,393 21,319,573 16,348,754 123 94 May 20'330,058 11,581,047 170,760 96 84 June 21;570,135 19,806,128 7;754,821 92 82 July 22,426,574 19,063,103 16,339,685 85 73 August 20;275,651 17,370,880 15,186,093 86 75 September. 20,446,280 17,599,597 16,102,523 86 79 October 24,226,386 20,137,084 17,610,321 83 73 November.. 23;351,121 20,170,642 17,492,224 86 75 December.. 24,859,994 22,407,837 20,574,899 90 83 Total 244,243,474 241,430,519 207,095,562 85 All other reporting centers. Index, corresponding month in 1920 1921 1919=100. 1920 1921 January 16,319,658 21,091,:350 17,527,474 129 107 February... 13,267,355 17,227, 6i93 14,227,920 130 107 March 15,026,170 20,550,!276 16,133,469 137 107 April 14,946,539 19,736,<980 15,463,270 132 103 May 16,224,677 19,113,-472 14,939,038 118 92 June 17,105,428 19,971,!818 15,417,379 117 90 July 18,063,320 20,235,(692 14, 748,854 112 82 August 17,182,477 18,412,J572 14,532,948 107 85 September. 17,642,749 19,261,J880 15,123,124 109 86 October 19,654,367 20,070,:102 16242,396 102 83 November. 18,617,564 19,094,'404 15,504,960 103 83 December.. 21,056,267 19,991,717 16,966,800 95 81 Total 205,106,571 234,757,956 186,827, G32 114 J 91 1 A comparison of the figures month by month shows that the trend of the volume of business in 1921 was downward until July and began to rise after that month. It appears that this general trend is in accordance with seasonal conditions, as a similar trend is shown in 1919 and 1920. An analysis of the index numbers shows that for the first three months of the year the volume of business was larger than during the corresponding period in 1919, but in 1919 a rapid expansion occurred during the latter part of the year and the 1921 figures are lower than those for 1919 for every month beginning with May, the difference amounting to 23 per cent in July and October, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 REPORT OF THE FEDERAL RESERVE BOARD. and to 18 per cent in December. As compared with 1920. the past year's figures are smaller for each month, but there is a noticeable narrowing of the difference, reflecting the expanding volume of business toward the end of the year. The movement in the volume of business from month to month in New York City and outside was closely parallel. Throughout the year 1921 considerably more than one-half of the total volume of bank debits for all reporting centers was shown for Xew York City. The same was true in 1919, but not in 1920 when the volume of debits was about equally divided between Xew York City and outside centers. The decline in the volume of business in Xew York City in 1920 reflected in part the fall in security values, the dullness of the exchange market, and the establishment of a stock exchange clearing house which reduced the number of checks drawn in settlement of stock and bond purchases. The increase shown for debits in Xew York during the latter part of 1921, on the other hand, is due in part to the greater activity of security markets and to advances in security values. The Board's statistics of volume of business are based on reports of debits to individual accounts of banks in about 150 leading clearing house centers. These figures are now generally recognized as the best available single measure of changes in the volume of business, reflecting the combined effects of changes in the physical output, in rapidity of turnover, and in price level. Statistics of bank debits for all reporting centers for each month in 1919, 1920 and 1921 are shown in the appendix. RESERVE RATIO. There were continuous advances, with but few exceptions, in the reserve ratio of the Federal Eeserve Banks during the year 1921. By reference to the first column of percentages in the table on page 29 and to the solid line in the chart on page 28, a clear idea may be obtained of the trend of the ratio for the year. The table gives and the chart relates to figures beginning with Xovember 5, 1920, the date on which the reserve banks' combined liabilities on deposits and notes reached their peak. This date may be regarded as the turning point between the period of post Avar expansion, extending from the middle of 1919 to Xovember, 1920, and the period of liquidation which began at that time and continued to the end of the year 1921. The few occasions on which the reserve ratio shows a decline during the year can be explained by temporary influences. The most pronounced decline, for instance, is shown on June 15 and it was caused by a large temporary increase in deposits in connection with the redemption of Treasury certificates and the collection of income and excess-profits tax payments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 27 Reference is made to the fact that the method of computing the reserve ratio was changed beginning with the statement of March 18. Prior to that date " net deposits " were used in calculating the ratio, while beginning with that date " total deposits " were taken. According to the earlier practice, " net deposits " were ascertained by taking the sum of Government deposits, member banks' reserve deposits, other deposits, and deferred availability items and subtracting from the total the asset item, " uncollected items and other deductions from gross deposits," composed chiefly of clearing-house exchanges, transit items, Federal Reserve notes of other Federal Reserve Banks, unassorted currency, and domestic transfers. After the change, total deposits included Government, member bank, and other deposits, without reference to deferred availability or uncollected items. This change in itself would have resulted in a reduction of the reserve ratio by more than 1 per cent, but a reduction in liabilities and an increase in reserves for the week more than offset the effect of the change, so that a slight advance in the reserve ratio was recorded on March 18 and no break in its upward movement is shown at that time. During the period from November 5, 1920, to December 28, 1921, the reserve ratio advanced by 28 per cent—from 43 to 71 per cent. During the same period the cash reserves increased by $822,171,000, or 38 per cent, while combined note and deposit liabilities declined by $841,082,000, or 17 per cent. According to the Board's calculation, 19 per cent of the gain in the reserve ratio was due to the increase in reserves and 9 per cent to the decline in liabilities. As stated above, cash reserves increased by $822,471,000 during the period. This increase was a consequence of the addition of $867,- 927,000 to the gold reserves, offset in part by a decrease of $45,456,000 in other reserve money, i. e., silver and legal tenders. On the liability side, the important change is in Federal Reserve note circulation, which declined by $910,683,000, or 27 per cent, while aggregate liabilities on deposits changed but little, being $69,601,000 larger at the end than at the beginning of the period. A comparison of the movement in reserves and notes for the period with the changes in bill holdings shows that the increase in gold reserves plus the decrease in note circulation accounts for the greater part of the liquidation of Federal Reserve Bank credit during the period. The increase of gold reserves of the Federal Reserve Banks represents in the main liquidation of bank credit due to the payment by foreign interests of obligations contracted in this country. Most of this gold has found its way into the Federal Reserve Banks. The reduction in note circulation, on the other hand, may be taken as a rough measure of the liquidation of domestic obligations. Since the changes in the two Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 REPORT OF THE FEDERAL RESERVE BOARD. items reflect different phases of banking developments during the year, it is interesting to calculate what the movement in the reserve ratio would have been had the reserves remained at the level of November 5, 1920, that is, had no additional gold come into the Federal Reserve banks, and, on the other hand, what the ratio would have been had liabilities remained at the level of November 5. The resulting percentages are shown RESERVE RATIO in the second and third percent- OF age columns in the table and in FEDERAL RESERVE BANKS ACTUAL R4TI0: the broken and dotted lines, respectively, in the chart. The C P E E N R T C P E E K R T i broken line indicates what the 90 ratio would have been had liaj bilities followed the course they 80 80 actually did during the year, ; with the reserves remaining un- 70 i \yy 70 changed at the November 5, 60 •A 60 1920, level. In other words, it shows to what extent the gain 50 50 < in the reserve ratio was due 40 — 40 entirely to reduction of liabilities. For the entire period the 30 30 gain in the reserve ratio attributable to the liquidation factor 20 20 | alone was from 43 to 51.6 per \0 10 cent. The dotted line, on the other hand, shows how the re- -0 serve ratio would have moved 1920 1921 as a result of additions to reserves alone with liabilities unchanged at the peak level. The figures and curve indicate that in these circumstances the gain in the ratio would have been from 43 to 59.3 per cent. It appears, therefore, that additions to gold reserves, which, as explained above, represent in the main liquidation of foreign obligations, were a more important factor in the gain in the reserve ratio than was the reduction of liabilities, which reflects mainly the liquidation of credit used in domestic commerce and industry. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 29 RESEEYE RATIOS. [Per cent.] Hypothetical. As With With Date. reported. reserves liabilities constant constant at Nov. 5, at Nov. 5, 1920, level. 1920, level. 1920. Nov. 5. 43.0 43.0 43.0 12. 43.6 43.4 43.2 19. 44.1 43.9 43.2 26. 44.4 43.8 43.5 Dec. 3. 44.1 43.6 43.5 10. 44.5 43.6 43.8 17. 45.5 44.4 44.0 23. 45.1 43.8 44.3 30. 45.4 43.8 44.5 1921. Jan. 7. 46.4 44.2 45.1 14. 48.1 45.6 45.3 21. 48.5 45.7 45.6 28. 49.0 45.8 45.9 Feb. 4. 49.3 46.0 46.1 11. 49.6 46.0 46.4 18. 50.3 46.3 46.6 25. 49.9 45.9 46.7 Mar. 4. 50.8 46.4 47.1 11. 50.9 46.1 47.5 18. 51.0 45.8 47.8 25. 50.8 45.5 48.0 Apr. 1. 52.4 46.2 48.7 May 2 2 1 8 7 4 2 5 . . . . . 5 5 5 5 5 5 5 5 3 3 5 4 . . . . . . 0 7 9 3 1 5 4 4 4 4 4 7 7 6 7 6 . . . . . 6 9 6 1 8 4 4 4 4 4 9 9 9 9 9 . . . . . 2 4 2 6 9 11. 56.8 • 47.8 50.3 18. 57.6 48.4 50.5 25. 57.4 48 9 50.7 June 1. 58.3 48.5 50.9 8. 56.8 48.8 51.3 15. 60.4 47.1 51.8 22. 60.8 50.0 51.9 29. 60.0 50.2 52.0 July 6. 61.6 49.5 52.1 13. 62.5 50.5 52.4 20. 63.4 51.0 52.7 27. 63.7 51.3 53.2 Aug. 3. 51.2 53.6 10. 65.o 51.9 53.9 17. 65.8 52.0 54.4 24. 66.5 52.2 54.8 31. 66.8 52.0 55.2 Sept. 7. 66.2 51.2 55.5 14. 67.5 51.7 56.1 21. 68.7 52.1 56.7 28. 69.0 52.0 57.0 Oct. 5.. 69.0 51.9 57.1 11.. 68.5 51.6 57.0 19.. 70.3 52.2 57.9 26.. 70.8 52.3 58.2 Nov. 2.. 71.0 52.3 58.3 9.. 71.4 52.3 58.6 16.. 71.8 52.5 58.8 23.. 72.3 52.7 59.0 30.. 72.7 52.8 59.2 Dec. 7.. 73.1 53.0 59.2 14.. 72.6 52.5 I 59.4 21.. 70.7 51.3 59.3 28.. 71.1 51.6 59.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 REPORT OF THE FEDERAL RESERVE BOARD. CHANGES IN DISCOUNT RATES DURING 19 21. Control over discount rates, as exercised by the Federal Reserve Banks and the Federal Eeserve Board, is an important and farreaching power which must always be used with care and discretion. The principle is well established that the discount rates of a central bank should be slightly in excess of market rates. This is a time-honored policy, for example, of the Bank of England, and yet there are certain essential differences between the operations of a bank of the type of the Bank of England and those of the Federal Reserve Banks which must be taken into consideration. The official discount rates of the Bank of England are minimum rates and relate only to bills of exchange. Federal Reserve Bank rates, on the other hand, with the exception of rates established for the purchase of acceptances in the open market, are fixed and uniform, and, since the so-called " progressive " rates have been abrogated, are applicable to all offerings of a member bank within a Federal Reserve district, regardless of the proportion of the member bank's rediscounts to its reserve deposits. While it is theoretically desirable that Federal Reserve Bank rates should be equal to or slightly in advance of current market rates, it has always been exceedingly difficult to determine just what current market rates are. Even in the largest money centers of the country rates vary greatly according to the character of the transaction. In New York City, for example, there are large dealings in call loans which are usually secured by stock exchange collateral, in bankers' acceptances, commercial paper offered by note brokers, in Treasury certificates, and in the various issues of Government war obligations. In some other money centers throughout the country the same factors enter into the money market, with the exception, perhaps, of call loans, and it is customary everywhere for banks to extend to good customers lines of credit at rates more or less constant, and which are based upon the average deposit balance carried by the customer. Most of the Federal Reserve districts are made up of several States or parts of States which have varying usury laws, so that the legal and contract rates in all parts of a Federal Reserve district are by no means uniform. During all the post-war period there has never been a time when the discount rate of a Federal Reserve Bank, even the average rate in those districts where the progressive rates were effective, exceeded the current rate, if that rate l>e measured by rates charged on ordinary bank loans or by the rates for commercial paper in the open market. There were many instances where member banks could leirallv charge their customers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 31 10 to 12 per cent and could rediscount with the Federal Reserve Bank at from 6 to 7 per cent. It seems, therefore, impracticable to establish a Federal Reserve Bank rate which will preclude the possibility of a member bank rediscounting at a profit and no attempt has ever been made to establish a rate based on this principle. Data of interest in connection with the present relationship between rates of discount charged by Federal Reserve Banks and by member banks are brought out in the following table which gives the maximum, minimum, and average rates of interest or discount charged customers by member banks on paper rediscounted with each Federal Reserve Bank during December, 1921, together with the rates of discount charged thereon by Federal Reserve Banks: ! Rates charged by member banks Margin. (per cent). between average Rates rate-s ! charged by charged by Federal Reserve district. Federal mem )er s Reserve ! Maximum.Minimum. Average. Banks anbda nraktses charged by (rer cent). Federal Reserve 1 Banks, Boston 10.0 4.50 6.31 4. 50 New "Voile 8.0 4.25 6.00 4.50 r>0 Philadelohia 7.0 5.00 5.97 4. 50 47 Cleveland 8. 0 4.25 6.27 5.00 97 Richmond 10.0 4.00 6.60 1 5.13 47 Atlanta 12.0 5.50 7.34 2 5.28 * 06 Chicago . . 10.0 5.00 6. 60 5.00 60 St. Louis 10.0 5.25 6.69 5 00 ty) Minneapolis . ... . . 12.0 5.50 7.65 5. 50 ? |^ Kansas Cit^ 12 0 5.50 7 87 5 00 ? S7 Dallas 10.0 6.00 7.09 o. 50 San Francisco 12.0 4.125 6.37 5.00 .37 All districts 12.0 ; 4.00 6.27 34.91 1.36 1 Average rate. Discount rate was reduced from oh to 5 per cent on Dec. 10. 2 Average rate. Discount rate was reduced from 5% to 5 per cent on Dec. 19. 3 Average rate. The rates shown in the above table are admittedly subject to certain limitations, due to the fact that they do not take into account any paper discounted by nonmember banks or paper discounted by member banks which was not subsequently rediscounted with the Federal Reserve Banks. It is apparent, however, that the figures furnish a fair basis of comparison between rates charged by Federal Reserve Banks and by member banks. Rates charged by member banks to their customers on paper rediscounted with the Federal Reserve Banks during December, 1921, ranged from a minimum of 4 per cent to a maximum of 12 per cent, as will be seen from the following table, which shows the number and amount of customers' bills and notes rediscounted with the Federal Reserve Banks during December, 1921, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 REPORT OF THE FEDERAL RESERVE BOARD. distributed according to rates of discount or interest charged by member banks: Rate (per cent). o N f u p m ie b ce e s r . P o e f r t o c t e a n l t . Amount. P of e r t o c t e a n l. t 4 1 $1 250 4£ 4 25,000 13 0.01 185,000 0.01 41 12 .01 300,000 .02 4I 56 .06 767,026 .05 4f 13 .01 435,000 .03 5 183 .19 10,490,960 .72 23 .02 470,000 .03 £i 1,072 1.09 198,124,285 13.52 1 25,000 423 .43 36,264,500 2.48 6 18,970 19.30 760,528,897 51.89 697 .71 9,694,902 .66 6* 4,616 4.70 176,814,383 12.06 6| 135 .14 3,329,500 .23 7::.:.:...::".":": : :: •::::::::::::::::::::: 17,362 17.66 145,889,704 9.95 71 10 .01 30,260 7l 1,243 1.26 17,771,249 1.21 8 . 31,153 31.70 79,037,682 5.39 8* 107 .11 393,668 .03 9 1,020 1.04 2,365.962 .16 1 4', 000 3 7,860 10 20,697 21.06 22,578 891 1.54 11 15 .02 23,478 12 458 .47 281,322 .02 Total 98,288 100.00 1,465,839,779 100.00 Member bank rate not given 2,538 20,451,776 Total customers' paper discounted 100,826 1 486,291 555 It is noteworthy in this connection that on 19 per cent of the number of pieces and 52 per cent of the amount of paper discounted, member banks charged a rate of 6 per cent: that on nearly IS per cent of the number of pieces and 10 per cent of the amount they charged a rate of 7 per cent; that on 31 per cent of the number of pieces and 5 per cent of the amount they charged 8 per cent, and on 21 per cent of the number of pieces and less than 2 per cent of the amount member banks charged their customers a rate of 10 per cent. Stating the case in another way, it is seen on the whole that as the average size of bills discounted decreases the rate charged increases; for example, the average size of notes discounted at a rate of 6 per cent was slightly over $40,000, whereas the average size of notes discounted at 10 per cent was slightly over $1,000. It became necessary during the year 1920 for the Federal Reserve Banks to establish and for the Federal Eeserve Board to approve a relatively high scale of discount rates, for it was evident that a continuance of the war-time policy of abnormally low rates would result in disaster to the public, the member banks and the Federal Reserve Banks alike. The law imposes no limit upon the amount that a member bank may rediscount with its Federal Reserve Bank and the maintenance of a 4 per cent Federal Reserve Bank rate in the face of an 8 per cent money market was manifestly impossible. The beginning of the year 1921 found five of the Federal Reserve Banks with rediscount rates of 7 per cent, and the remaining seven Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 33 banks with a 6 per cent rate, these rates being applicable to eligible paper of all maturities, issued or drawn for agricultural, industrial, or commercial purposes or based on live stock. A preferential rate prevailed at all the banks on paper secured by obligations of the United States Government. The Federal Reserve Banks of St. Louis, Kansas City, and Dallas were still applying the graduated or progressive discount rates authorized by section 14 of the Federal Reserve Act, as amended by the Act of April 13, 1920. The discount rate on trade acceptances indorsed by member banks was, with two exceptions, the same as that applicable to other forms of commercial paper, the Federal Reserve Banks of Cleveland and Minneapolis maintaining preferential rates of one-fourth and one-half per cent, respectively: while indorsed bankers' acceptances offered by member banks other than the acceptors were being discounted by eight of the Federal Reserve Banks at rates ranging from one-fourth to 1 per cent less than the prevailing rate on commercial paper. Rates on paper secured by Treasury certificates of indebtedness, which were in all cases lower than those charged on commercial paper, were governed largely by the rate of interest borne by the certificates pledged as collateral. At the beginning of the year the Federal Reserve Banks of Philadelphia, Atlanta, St. Louis, and Dallas each had a rate of 5^ per cent on paper secured by Liberty bonds and Victory notes, while 5J per cent was being charged by Cleveland and 6 per cent by the remaining seven banks on paper secured in this way. Changes during the year have brought about not only a material reduction in the discount rates at all Federal Reserve Banks, but have also resulted in the discontinuance of the differentials formerly applicable to certain classes of paper, so that at the present time one rate obtains at each Federal Reserve Bank for all eligible paper, irrespective of its character or maturity. The most noteworthy changes during the year 1921 were reductions in the rates applicable to commercial, industrial, agricultural, and live-stock paper, the changes in which are shown in the following table. Reductions. Tn 'Feder B a a l n R k e . serve J e a ff n ec . t l. ru F a e r b y - . 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 - . - Boston 7 6 5 New York 6* 6 ! 5i 5 i Philadelphia 6 i of 5 U Cleveland 6 - Richmond 6 5 Atlanta.. 6 5 Chicago 7 6i 1 6 St. Louis Minneapolis i (U ! 6 | 5J Kansas Citv (i 1 U2 Dallas I 1 7 6 I San Francisco ; i -" i 2 ; j 1 Increase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 REPORT OF THE FEDERAL RESERVE BOARD. Following a thorough discussion of credit conditions in each Federal Reserve district at the conference between the Federal Reserve Board and the chairmen and governors of Federal Reserve Banks held in Washington during the last week in October, the board of directors of each Federal Reserve Bank recommended and the Federal Reserve Board approved a further and general reduction in the discount rates on all classes of paper, which became effective at ths several Federal Reserve Banks between November 2 and November 7. At the end of the year the Federal Reserve Banks of Boston, New York, and Philadelphia had a discount rate of 4rJ per cent, the Federal Reserve Banks of Minneapolis and Dallas had discount rates of 5-J per cent, and all the other Federal Reserve Banks—a discount rate of 5 per cent, as compared with rates of 6 to 7 per cent at the beginning of the year. Discount rates on paper secured by Treasury certificates of indebtedness were raised by some of the banks in the early part of the year. This resulted, in some instances, in putting these rates on the same level as those on paper secured by Liberty bonds and Victory notes, while in other cases the higher rates eliminated partially or entirely the differential between rates on this class of paper and on eligible agricultural, commercial, industrial, and live-stock paper. All differentials in rates between paper secured by Government obligations and agricultural and commercial paper were gradually abolished, however, as successive reductions were made in the basic rates applicable to agricultural and commercial paper. The graduated or progressive rates, which were discussed in detail in the annual report of the Federal Reserve Board for 1920, are no longer in effect. As stated in that report, four banks, Atlanta, St. Louis, Kansas City, and Dallas, put these rates into effect in April and May, 1920, and one of them, Atlanta, abolished the progressive rate in November of the same year, at the same time establishing a flat 7 per cent rate on commercial, industrial, agricultural, and live-stock paper. Under the rule in effect on January 1, 1921, the borrowings of member banks in excess of their basic lines (determined in the manner explained in the annual report for 1920) at the Federal Reserve Banks of St. Louis, Kansas City, and Dallas, were subject to an increase of one-half of 1 per cent above the normal discount rate for each 25 per cent by which the amount of accommodation extended the member bank exceeded its basic line. The Federal Reserve* Bank of Dallas abolished the graduated discount rates on February 15, 1921, and at the same time established i\ flat rate of 7 per cent on agricultural and commercial paper, while Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 35 the other two banks first modified their progressive rate scales and subsequently discontinued them. In lieu of ,the rates of progression in effect on January 1, the Federal Reserve Bank of St. Louis on May 21, 1921, established a maximum progressive rate of 7 per cent; i. e., the new plan provided that thereafter borrowings up to the basic line would be charged the normal 6 per cent rate, but that average borrowings in excess of the basic line, which were subject to the progressive rate, would be charged an additional 1 per cent, or 7 per cent, regardless of the amount of excess borrowings. The graduated discount rate plan was discontinued altogether by this bank on June 23. The Federal Reserve Bank of Kansas City, on January 29, 1921, amended its progressive-rate plan by establishing a maximum rate of 12 per cent; i. e., it provided that in no case would more than 6 percent in addition to the normal rate of 6 per cent be charged on excess borrowings. In other respects the rate of progression remained unchanged at one-half of 1 per cent for each 25 per cent by which the amount of accommodation extended to the member bank exceeded its basic line. On July 1 the Federal Reserve Bank of Kansas City established a maximum rate chargeable of 8 per cent, and at the same time changed the rate of progression to 1 per cent, so that borrowings up to the basic line were taken at the normal rate of 6 per cent, excess borrowings up to 100 per cent of the basic line were subject to a snperrate of 1 per cent, and all additional borrowings to a superrate of 2 per cent. The graduated discount rate plan was abolished entirely by this bank, effective August 1. Both the Federal Reserve Banks of Atlanta and Kansas City rebated all discount charged member banks under the progressive-rate plan at rates in excess of 12 per cent. A substantial decline in the volume of bankers' acceptances outstanding, together with an increased demand on the part of member and nonmember banks, saving institutions, and industrial corporations for such acceptances for investment purposes, has brought about a material decline in open-market acceptance rates during the year. In consequence the minimum authorized rates on acceptances purchased in the open market by Federal Reserve Banks were lowered during the year to 4 per cent at nearly all the banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

.36 REPORT OF THE FEDERAL RESERVE BOARD. In the table given below there are shown the average rate charged on rediscounted bills during the years 1920 and 1921 by each Federal Reserve Bank and the average rate at which acceptances were purchased in the open market. Bills discounted. Acceptances purchased. Federal Reserve Bank. 1921 1920 1921 1920 5.88 6.03 5.39 5.98 New York 6.06 5.97 5.40 5.81 Philadelphia 5.44 5.44 5.35 5.89 Cleveland . 5.72 5.66 5.81 5.83 Richmond 5.91 5.78 5.93 5.93 Atlanta . . 6.05 5.97 6.10 5.85 Chicago . 6.29 6.32 5.51 5. 93 St Louis 5.90 5.98 5.47 5.68 Minneapolis . 6.38 6.40 6.08 5.50 Kansas City 6.14 6.65 6.46 6.27 Pallas . 6.01 5.78 6.08 5.97 San Francisco 5.78 5.82 5.49 5.79 All banks . .. 6.01 6.02 5.49 5.85 Discount rates obtaining on January 1,1921, at the Federal Reserve Banks on the several classes of paper, and the changes made during the year 1921, are shown in the following tables: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMMERCIAL PAPER MATURING WITHIN 90 DAYS, AND AGRICULTURAL AND LIVE- STOCK a" e federal Reserve Bank. a I Boston 7 New York 7 Philadelphia. 6 Cleveland. 6 Richmond. . 6 Atlanta.. 7 Chicago 7 St. Louis 6 Minneapolis. 7 Kansas City 6 Dallas.. . 6 San Francisco 6 51 .beF 7 51 .rpA 6 5 yaM 6 yaM | 7 yaM 6 64 I 01 yaM 61 yaM j 61 enuJ j PAPER MATURING WITHIN 6 MONTHS. Changes effective- 52 enuJ 6 5i 5£ ! | ' 6 j 52 yluJ 03 yluJ 8 .guA 22 .tpeS 5 32 .tpeS 5 5 .tcO ... 5 6 ; : : : : : : : :: 6 2 .voN 3 .voN 4 .voN 4* 4i 7 .voN 01 .ceD 4* 54 1 I .. - - . 5£ i 5| ..1 5* 5 91 .ceD 5 PAPER SECURED BY UNITED STATES TREASURY NOTES 1 AND CERTIFICATES OF INDEBTEDNESS MATURING WITHIN 90 DAYS. Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta.. Chicago St. Louis Minneapolis Kansas Citv Dallas San Francisco .naJ tceffe nI .1291 ,1 Changes effective— 54 25-6 254.-6 2 54 6 256 *5J-6 25-54. 54 2 2 5 5 6 6 2 54 6 .22 .naJ 6 .42 .naJ Q .13 .naJ 6 .1 .beF 6 .3 .beF 251 6 I .5 .beF .8 .beF 6 6 .01 .beF 10 r-l 6 .51 .rpA d 03 1 6 .61 enu .1 ylur 6 6 G .12 ylur .52 ylur .8 .gu\ r/-| rr! 5 ... i 5 ' 54 i i .5 .tcO .2 .voN CO i •* 1 I .7 .voN .01 .ceD ! 1 i j 4i ! ... 44 ! ! 44 ! ! : 54 1 •>1 .-; 54 i • 5 5 i .91 .ceD j o H O j w o s CO 1 First issued as of June 15, 1921. 1 Discount rate corresponds to interest rate borne by certificates pledged as collateral within limits shown. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PAPER SECURGD BY LIBERTY BONDS AND VICTORY NOTES MATURING WITHIN 90 DAYS. 00 Changes effective— In Federal Reserve Bank. effect J 1 a 9 n 2 . 1 1 . , F 1 e 0 b . . F 1 e 5 b . . M 6 a . y M 21 a . y J 2 u 1 l . y J 2 u 5 ly . A 8 u . g. S 2 e 2 p . t. S 2 e 3 p . t. O 5 c . t. Nov. N 3 o . v. N 4 o . v. N 7 o . v. D 1 e 0 c . . ! | D 1 e 9 c . . Boston 6 5i 5 4i New York 6 5* 5 Philadelphia 51 5 Cleveland 5-1 6 5* 5 Richmond 6 5 H C A h tl i a c n a t g a o -. . 6 5* 6 51 5" i 5 O St. Louis 6 5 Minneapolis ? 51 H Kansas City . , 5 ! Dallas 6 6 5* San Francisco 561 5 i TRADE ACCEPTANCES MATURING WITHIN 90 DAYS. > tr1 Changes effective- In effect Federal Reserve Bank. J 1 a 9 n 2 . 1 l . . ' F 1 e 0 b . . F 1 e 5 b . . A 1 p 5 r . . M 5 a . y M 6 a . y May M 1 a 6 y . Ju 16 n . e Ju 25 n . e J 2 u 1 l . y J 2 u 5 ly . J 3 u 0 lv : A 8 u . g. S 2 e 2 p . t. S 2 e 3 p . t. O 5 c . t. N 9 ov. N 3 o . v. N 4 o . v. N 7 o . v . , D 1 e 0 c . . D 1 e 9 c . . Boston . . 7 i 6 oj 5 w New York 7 6 5 o Philadelphia - 6 5l 5 4-1 > Cleveland 6 5J Richmond 51 5 Atlanta 7 6 5| 5 Chicago 7 '/'.".'. 6 5 6 .;....! Minneapolis - 6* | 6 5| i . ff Dallas 6 7 6^ 6 5i San Francisco 5h 5 I 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANKERS' ACCEPTANCES DISCOUNTED FOR MEMBER BANKS MATURING WITHIN THREE MONTHS. Changes effective— In Federal Reserve Bank. effect J 1 a 9 n 2 . 1 1 . , F 1 e 0 b . . F 1 e 5 b . . M 1 a 6 y . J 2 u 5 n . e i J 1 u . l " y J 2 u i l : v J 2 u 5 l . y A 8 u . g. S 2 e 2 p . t . ! I O 5 c . t. N 2 o . v . : N 3 o . v. N 4 o . v. N 7 o . v. D 1 e 0 c . . D 1 e 9 c . . | ; | Boston 0) w New York i\ ! ! oi 0 ' 4^ CPhleivlaedlaenl dphia ( o \ f 6 51 4* 5 Richmond 6 i si' i H Atlanta 6 51 1 0 Chicago St Louis 51 n Minneapolis 6 j i Ivausas City r)1 6 - Dallas 51 7 f, ; San Francisco... 6" i i 5-i 5 i 1 No special rate. NOTE.—Rates apply only to acceptances offered for rediscount by a bank other than the acceptor, the commercial paper rate being applicable to acceptances rediscounted by the acceptor. OPEN MARKET RATES—MINIMUM AUTHORIZED RATE ON BANKERS' AND TRADE ACCEPTANCES BOUGHT IN OPEN MARKET. £ Changes effective—• In effect Federal Reserve Bank. Jan. 1, K 1921. Feb. 15. Sept. 23. Sept. 26. Oct. 4. Oct. 0. Oct. 7. Oct. 11. Oct. 13. Oct. 26. Nov. 3. Dec. 19. Boston r 4 New York - W Philadelphia - 4" O Cleveland. f 5 4* 4 Richmond M-5 Atlanta . 24-5 Chicago 4 St Louis 5 4 Minneapolis... . 5 Kansas City 5 Dallas 5 6 San Francisco 1 4 ' ' ' I 1 Anphes only to bankers' acceptances indorsed by member banks; minimum rate on other bills is the same as commercial paper rate. * Minimum, 4 per cent; maximum, 5 per cent. CO NOTE,—Acceptances purchased from the acceptor are taken at a rate not less than the discount rate on commercial paper. CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GRADUATED DISCOUNT RATES. [Section 14 as amended April 13, 1920.] January 1,1921—in effect at— January 29. February 15. May 21. June 23. July 1. August 1. St. Louis.... Flat progressive rate Discontinued of 7 per cent established, i. e., 1 per cent above normal rate of 6 per cent on o the entire amount of w average excess bor- H rowings subject to o the progressive rate. Kansas City., Maximum rate of 12 Maximum rate of S Discontinued. per cent established, per cent established H l. e., 6 per cent in and rate of progresaddition to normal sion changed so that rate of 6 per cent. excess borrowings Rate of progression up to 100 per cent of unchanged at one- basic line were subhalf of I per cent for ject to a supcrrate each 25 per cent by of 1 per cent and which the amount additional borrowof accommodation ings to a superrate extended to the of 2 per cent. member bank exceeded its basic line. 2 Dallas.. )iscontinued NOTE.—On Jan. J, 1921, borrowings of member banks iti <>\ce>". of bu-i.- line, at th«j HVderuI Reserve Banks of St. Louis, Kansas City, and Dallas, were subject to a one-half per cent increase above the normal discount rate for t-ucii 25 pi*r rent by uhu-h tin* amount ul accommodation extended exceeded t.ae basic line. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 41 CHANGES IN RATES OF EARNINGS DURING 1921. The easing of discount and open market rates during 1921, in consequence of continuous liquidation throughout the year, is reflected in the rates of earnings of Federal Reserve Banks which show a gradual but continuous decline, beginning with the month of February. For the year as a whole the average rate of earnings on all classes of earning assets was 5.61 per cent, compared with 5.50 per cent during 1920. The average rate on discounted bills, from which over 89 per cent of the earnings of the Federal Reserve Banks were derived, showed a slight recession to 6.30 per cent in January, 1921, from 6.42 per cent in December, 1920. the highest average rate of earnings on this class of paper ever reported for the Federal Reserve System as a whole. This was followed by a partial recovery to 6.37 per cent in February in consequence of advances made by some of the Federal Reserve Banks in their discount rates on paper secured by United States Government obligations. From this high point for the year, there was a gradual but steady decline in the rates of earnings on discounted bills, the rate for the month of December being: 5.11 per cent. Earnings on acceptances bought in the open market followed in general the same course, though at a somewhat lower level, the average rate of earnings in December being 4.50 per cent, compared with 6.14 per cent for January. Rates of earnings on United States securities reflect primarily the low rate, 2 per cent, borne by the so-called " Pittman Act certificates " held by the Federal Reserve Banks on deposit with the United States Treasurer as security for Federal Reserve Bank notes outstanding. The volume of these certificates has steadily decreased during the year, because of the Treasury's policy to redeem them as Federal Reserve Bank notes are retired and replaced by silver certificates. Variations in the rate of earnings on United States securities are due to purchases of temporary 4 per cent certificates of indebtedness issued by the Treasury Department, usually at tax paying periods, and to purchases of Treasury certificates under repurchase agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 REPORT OF THE FEDERAL RESERVE BOARD. The average rates of earnings on each class of earning assests by months during 1921 are shown in the following table: Bills United ! All Bills dis- bought \ States Municipal ; classes. counted. in open securi- warrants. market. ties. January 5 88 6 30 6 14 2 13 February 5.92 6.37 5.99 ; 2.11 March 5.90 6.36 6.01 I 2.24 April 5.85 6. 32 5.97 2.15 May... 5 79 6 29 5 98 i 2 49 June 5.67 6.20 5.97 ! 2.40 July 5.60 6.09 5.96 1 2.31 August 5.42 5.91 5.36 2. 33 September. 5 35 5.85 5.33 i 2.49 October 5.25 5. 69 5.04 i 2.38 6. 00 November 4 99 5 39 4 91 2 68 5 08 December 4.74 5.11 4.50 ! 2.92 5.44 Average for year 5.61 6.07 5.70 | 2.37 5.27 1 REDISCOUNTS BETWEEN FEDERAL RESERVE BAXKS. Reserve ratios of Federal Reserve Banks, considered separately, are closely related to the rediscount transactions between Federal Reserve Banks. A Federal Reserve Bank will seek rediscount accommodations from other reserve banks at times when its own reserve is insufficient, without declining to a point below the legal minimum, to supply the credit demands of its member banks. Reserve ratios on the basis of reserves actually owned by a bank are knowTn as " actual" reserve ratios, while reserve ratios on the basis of reserves before interbank borrowing or lending are referred to as " adjusted " ratios. It is the adjusted ratio, therefore, that is an index of the reserve position of a Federal Reserve Bank from the standpoint of its ability to make rediscounts for other reserve banks or its need to apply for accommodation to other reserve banks. Two tables are presented below, one showing the actual and adjusted reserve ratios of each Federal Reserve Bank at the end of each month during 1920 and 1921 and the other showing for each Federal Reserve Bank the net amount of accommodation received from or extended to other reserve banks. During the 3^ear 1920 interdistrict rediscounting assumed large proportions, the amount at the end of October being $260,440,000. During the year 1921 credit requirements throughout the country were less urgent and banks were better able to meet local demands out of their own resources. The maximum amount of Federal Reserve Bank rediscounts at the end of any month subsequent to the high mark of $91,365,000 on January 31 was $68,304,000 at the end of August. Since that time interbank borrowings decreased rapidly and from December 15 to the end of the year no Federal Reserve Bank was rediscounting with others. The Federal Reserve Banks which have received the largest amount of accommodation from other Federal Reserve Banks during the past Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 43 two years are those at Richmond, Atlanta, St. Louis, and Dallas, whose districts were affected by the decline in the price of cotton, and the Federal Reserve Banks of Chicago, Minneapolis, and Kansas City, which felt the effect of the decline in the price of grains, wool, and other agricultural products. The chart in the appendix of the complete report shows the actual and adjusted reserve ratios for each Federal Reserve Bank during the years 1920 and 1921. It is apparent from the chart that the banks in the principal agricultural districts, with the exception at times of Chicago, would not have been able to serve the needs of their communities nearly so well had it not been possible to obtain additional funds from the banks in the North and East which were in a stronger reserve position. In 1920 the principal lending bank was the Federal Reserve Bank of Cleveland, which extended accommodation to other Federal Reserve Banks up to a maximum amount of $145,000,000, when it was extending indirectly through its loans to other reserve banks more credit to member banks outside of its own district than to its own members. In 1921 the Federal Reserve Bank of Cleveland was called upon to lend to other Federal Reserve Banks in a much more moderate degree. The Federal Reserve Bank of Boston rediscounted for other Federal Reserve Banks almost continually during the two years, and the Federal Reserve Bank of New York at different times appeared in interdistrict transactions, either as borrower or lender. During 1921, however, owing to the constant flow of gold from abroad, and to marked liquidation of advances to its own member banks, the New York Federal Reserve Bank's reserve ratio shows a marked and constant advance, and it has been extending accommodation to other Federal Reserve Banks since April. The Federal Reserve Bank of Philadelphia was borrowing from other Federal Reserve Banks during the early part of the year 1920, but as its reserve position improved the bank became a heavy lender to other Federal Reserve Banks beginning with July. This bank was not called upon during the year 1921 to extend any large amount of accommodation to other Federal Reserve Banks. As a result of the rediscount transactions between Federal Reserve Banks, the actual reserve ratios of the several banks remained fairly steady throughout the year 1920 at between 40 and 45 per cent. In 1921, chiefly in consequence of the constant influx of gold and the reduction of Federal Reserve note circulation, an upward tendency in reserve ratios was noted at all the banks, the greatest advance being recorded in the case of the Federal Reserve Bank of New York, which had a reserve ratio of 37.9 per cent at the end of January, 1921, of 83.6 per cent at the end of November and 78.8 per cent on December 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44 REPORT OF THE FEDERAL RESERVE BOARD. ACTUAL AND ADJUSTED RESEKVE RATIOS [Percentages are based on Boston. © >> GG 1920. January 44.5 February 42.5 M arch 42.7 April 42.4 May 42.7 June 43.fi July ... 44.2 August 43. 2 September 43.6 October 43.1 November 44.4 December 45.4 1921. January 49.0 February 50.1 March. 52.0 April 54.8 Mav 58.1 June 60.8 July 63.7 August 66.8 September 68.8 October 70.6 November 72.7 December 70.2 1920. January February March April May June July . August September. . October November .... December 1921. January February March April May.. . June July . . . . \ugust September October November December .lautcA 42.6 50.5 45.0 53.1 50.1 56.8 56.5 53.1 51.4 49.6 55. 0 55. 3 64.4 62.4 59.6 72.0 68.9 72.4 77.4 71.4 75.9 79. 5 76.3 78.0 .detsujdA New York. 42. 3 47.3 50.4 58.9 55. 4 61.9 68.7 69.4 66.2 70.2 61.9 59.5 68.6 62.7 59.6 73.3 70.1 75.0 81.2 79.0 82.3 84.8 79.4 78.0 Chicago. 1 o < < 50.3 57.3 44.1 48.5 41.3 42.3 40.2 35.3 39.9 37.5 40.0 36.7 40.7 39.4 43.0 42.0 39.1 35.3 40.3 39.4 40.0 40.0 40.4 40.4 50.5 50.5 52.3 52.3 41.7 41.7 49.5 49.5 56.6 56.6 53. 5 53.5 60.8 60.8 70.0 70.0 67.8 67.8 71.0 71.0 74.2 74.2 69.9 69.9 .lautcA 40.3 37.6 39.1 39.9 41.8 39.2 40.4 38.5 43.7 39.1 40.8 40.0 37.9 40.5 55.4 55.0 61.8 71.2 73.5 75.5 81.5 81.9 83.6 78.8 .detsujdA OF FEDERAL RESERVE BANKS, end of month figures.2] Philadel- phia. 35.3 34.3 36.9 45.7 46.9 42.8 40.8 35. 9 42.9 35.1 39.2 39. 5 34.2 39.0 55.3 56.2 63.8 74.1 76.4 78.1 83.6 83.3 84.0 78.8 St. Louis. 1 1 < 48.9 49.8 43.0 43.0 39.3 33.2 40.2 18.5 40.1 13.9 41.9 27.8 42.3 26.3 41.6 24.8 40.2 21.0 40.4 21.6 41.3 34.9 44.5 44.5 50.9 50.9 54.9 54.9 52.2 52. 2 56.2 56.2 55.8 55.8 50.6 50.6 53.0 53.0 58.6 58.6 58.4 58.4 66.7 66.7 63.5 63.5 64.8 64.8 .lautcA 40.6 40.2 40.8 40.3 40.2 45.0 44.8 48.3 48. 5 51.3 49.6 54.2 58.9 55.9 52.9 55. 2 52.0 57.5 63.5 66.9 70.2 70.0 74.6 71.2 .detsujdA Cleveland. d < 30.4 48.3 29.0 44.9 30.5 45.8 34.3 50.5 40.2 51.5 45.0 51.1 47.7 56. 5 51.6 48.7 58.2 48.3 61.2 51. 9 55.4 56.5 58.7 59.1 60.2 66.7 57.0 68. 9 52.9 67. 5 55.2 68. 2 52. 0 70.8 57. 5 65. 5 63.5 66.5 66.9 71.4 70.2 69.0 70.0 70.0 74.6 74.8 71.2 69.0 Minne- apolis. -2 Is < < 50.2 50.2 48.4 51.4 48.3 56.1 39.4 30.7 41.0 25.8 41.1 21 2 40.4 29.3 40.0 22.8 39.1 22.2 39.2 18.1 39. 5 18.0 39.8 27.7 40.6 38.2 43.5 43.5 44.6 44.6 41.8 40.0 41.7 29.8 40.8 28.0 38.1 25.6 39.4 24.5 41.3 39.3 39.7 36.2 47.3 47.3 58.5 58.5 .detsujdA Richmond. 55.4 48.6 54.8 61.3 61.4 63.1 70.9 74.3 78.6 80.2 79.4 75.9 78.5 74,1 71.0 69.1 70.8 65. 5 68.8 73.2 72.1 71.6 74 9 69.0 Kansas City. i 49.6 49.6 47.0 52.2 45.3 46.3 41.6 32.9 40.7 33.1 41.1 33.9 39.7 26.8 40.7 28.3 41.3 18.4 40.3 15.9 40.2 24.4 41.4 25.2 41.0 41.0 48.0 48. 0 43.3 43.3 43.3 43.3 51.2 51.2 50.7 50.7 53.1 53.1 59.9 59.9 50.8 50.8 50.4 50. 4 48.6 48.6 50.5 50.5 .lautcA 44.6 44.0 42.0 43.2 40.2 41.7 41.9 46.6 42.5 45.5 43.2 45.4 48 0 48.6 41.9 42.8 43.2 45.2 42.5 40.1 44.7 46.6 43.7 42.6 .detsujdA 1920-21/ Atlanta. 41.9 4.4.0 33.7 29.0 25.6 27.0 28.6 33.0 29.3 38.2 38.0 40.3 48 0 48.6 41.9 35.0 3-5.0 31.0 27. 6 27.7 29.7 37.4 4L1 42.6 Dallas. 73 50.2 62.6 45. 9 64.0 52.8 59. 5 40.5 38.1 40.8 30.2 41.4 37.4 40.5 17.9 39.9 10.8 39.8 10.0 39.6 13.5 40.3 18.9 41.8 17.5 40.6 23.5 38.8 27.0 39.8 26. 5 39.3 30.5 40.8 35.0 38.9 28.7 40.1 15.7 40.1 9.2 41.2 2? 4 41.5 30.1 39.3 35.7 43.1 43.1 .lautcA 48.5 44.2 48.3 41.4 40.4 40.6 40.8 40.4 40.5 40. 5 40.1 40. 7 42 2 41.8 41.5 45.3 46.8 44.4 41. 6 40.8 40.4 40.3 40 5 43.3 .detsujdA 56.0 52.2 50 0 4.1.4 36.2 36.4 29.3 23.5 17.0 24.2 21.2 24 8 33 9 41.8 41.5 45 3 46.8 44 4 40.6 35.6 31.0 32 1 35 9 43.3 San Francisco. T3 IS to < 40.3 41.3 49.5 45.6 49.9 52.0 42.4 40.1 42.2 42.9 52.0 52.1 46.8 52.3 44.8 49.2 40.3 42.5 44.9 45.0 44.9 46.8 49.3 51.1 53.8 5S.2 51.2 53.3 53. 3 53.3 55.0 55.0 54 8 54.8 58.8 58.8 61.1 61.1 64.6 64.6 66.7 66.7 71.6 71.6 79.3 79.3 76.5 76.5 1 Ratio of cash reserves to note and net deposit liabilities, January, 1920-February, 1921; ratio of cash reserves to note and total deposit liabilities since March, 1921. 2 For 1920 the figures are for last Friday of each month; for 1921, for last day of each month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 45 NET AMOUNT OF ACCOMMODATION RECEIVED FROM OR EXTENDED TO OTHER FEDERAL RESERVE BANKS. [End-of-month holdings in thousands of dollars. Plus sign iniieates net accommodation extended; minus sign, net accommodation received.] Date. Boston. New York. Ph p i h la i d a. el- Cleveland. Richmond. Atlanta. Chicago. 1920. Jan 30 — 1 021 —75 649 —32,790 + 27 521 — 5,000 + 15 000 + 51,918 Feb. 27 — 11 923 -55,308 -38,925 + 15,601 + 16,187 +33,410 Mar. 28 -t-20 414 —34 096 —35 555 + 38 304 — 15 000 + 3 351 + 7 605 Apr. 30... + 22,126 +92,683 -20,709 + 48,275 -2< 850 -38,471 Mav 28 + 20,366 +82,054 + 43,761 -25,000 - 8,500 -18,995 June 25 .. + 17,130 +56,567 + 52,078 ^-24,904 - 7,960 -24,950 Julv 30 +48,368 + 6,474 +io,6i4 + 64,756 -23,133 -21,607 -10,001 Aug. 27 +60,911 -40,923 + 11,812 + 121,060 -25,000 -31,963 - 8,001 Sept. 24 +60,655 -13,404 •+35,812 + 145,620 -24,620 -45,533 -29, 800 Oct. 29 +84 390 -61,362 +37,201 +138,750 -14,275 -36,122 - 7,050 Nov. 26 + 27,654 -24,502 + 21,758 + 112,106 — 10,000 -40,216 Dec. 30.. + 16 575 - 6,917 + 17,109 + 81,573 — 10,000 -33 659 1921. Jan. 31 + 15 686 -51 827 + 4,554 + 55,062 — 17 318 Feb. 28... + 1 082 —22,654 + 3,826 + 23,326 - 1,000 Mar 31 — 513 + 15 222 - 1,000 Apr. 30.. + 4 992 + 16,950 + 4,000 — 14,925 May 31 + 5 500 + 27 020 — 15 000 June 30 + 9,405 +38,024 -24. 849 July 30 + 13,896 + 37,530 "'+"K 986" -25'. 000 ""-'i'kho Aug 31 + 26 71ft +34' 768 + ()' 820 —20' 000 — 8 928 Sept. 30... + 21 853 + 26,933 + 11 422 —24,853 —16,881 Oct 31 + 17,958 + 18,328 + 5', 664 -14,900 -14,195 Nov. 30.. + 10 246 + 4,324 + 242 — 4,324 — 7 488 ; ;; Dec. 31 ;... Date. St. Louis. M ap i o n l n i e s. - K C a i n ty sa . s Dallas. Fran S c a i n sco. Total. 1920. Jan.30. .. + 1 663 +14,950 + 3 408 114 460 Feb 27 + 4,000 + 10,050 +23,500 + 3,408 100,156 Mar 26 —11 829 + 10 029 + 1 871 + 7 825 -4- 7 081 96 480 \pr 30 -41,385 — 11,111 -15,871 , - 3,000 - 7,687 163,084 May 28 -50,060 -19,132 -13,81)5 -13,000 + 2,371 148, 552 June 25 -26,723 -23,672 -12,958 - 5,000 + 392 126, 167 July 30 -307 607 -13,738 -22,902 -26,716 + 19,092 148,704 Aug. 27 -32, 434 -20,347 -22,247 —U, 540 + 15,672 215,455 Sept. 24. —36 996 — 21 349 —41 175 —37 419 + 8 909 250 298 Oct. 29 -37, 305 -26,603 -44,895 -32,828 + ' 93 260,440 Nov. 26 — 12 793 — 25 860 —28' 404 — 26 600 + 6 917 168 435 Dec. 30 . -14,801 —29,080 -27,711 + 6,917 122,174 1921. Jan 31 2 775 1Q 445 + 16 063 Ql 30 5 Feb. 28 + I,666 — 12^898 + 7,318 30,552 Mar 31 + 1,000 -14,700 - 9 16, 222 Apr. 30 — 2,000 — 8' 992 — 25 25 942 May 31 — Y>- 020 — 5 500 32 520 June 30 — 13 175 9 405 47,429 July 30 12, 530 21 032 60 412 Aug. 31 . . 14 7('8 24 610 (vS 304 Sept. 30 2 080 - 10; 394 60 208 Oct. 31 . — 3 428 , 9 427 41 950 Nov. 30 — 3*000 14 812 Dec. 31 EARNINGS AND OPERATING EXPENSES OF THE FEDERAL RESERVE BANKS. In its annual report for the year 1920 the Federal Reserve Board expressed the opinion that, in view of the decline in prices from the high level reached in 1919 and the recession of business, it might be expected that credit requirements, both for the purpose of main- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 REPOPiX OF THE FEDERAL RESERVE BOARD. taining reserve balances and for obtaining Federal Reserve notes for circulation, would be lighter. During 1921 there was a material reduction both in the loans and deposits of member banks, especially in financial and manufacturing centers, and this has been reflected in a decrease in the amount of reserves required to be carried with the Federal Reserve Banks and, consequently, in the amount of member bank borrowings. Much the greater part of the decrease in member bank borrowings, however, which shows a gradual but continuous decline from $2,687,- 000,000 at the end of 1920 to about $1,144,000,000 at the end of 1921, was due to the reduction of over $900,000,000 in the volume of Federal Reserve notes in circulation, caused by lower price levels and by net imports of $667,000,000 of gold, practically all of which found its way into the Federal Reserve Banks. This decline in the volume of rediscounts which Federal Reserve Banks have been called upon to make for member banks, together with the successive reductions in discount rates, has resulted in a decrease in gross earnings from $181,297,000 in 1920 to $122,865,000 in 1921. The greater part of the decrease was due to smaller earnings during the last half of the year, when gross earnings aggregated $46,182,000, as compared with $76,683,000 for the first half of 1921 and $99,520,000 for the last six months of 1920. Slightly over 89 per cent of the gross earnings for 1921, as against 82 per cent for 1920, came from paper discounted for member banks. The daily average of discounted paper held aggregated $1,804,000,000 in 1921, as compared with $2,530,000,000 in 1920. The Board desires again to call attention to the fact that the discount policies of the Federal Reserve Banks are directed with a view to accommodating the commercial, industrial, agricultural, and livestock interests of the country in the manner and to the extent permitted by the Federal Reserve Act and not for the purpose of increasing the profits of the Federal Reserve Banks or the amount of franchise taxes payable to the Government. In accordance with the provisions of section 7 of the Federal Reserve Act, after dividends at the rate of 6 per cent per annum are paid to the member banks on the Federal Reserve Bank stock held by them, and after the surplus has been brought up to 100 per cent of the subscribed capital of each Federal Reserve Bank, 90 per cent of the net earnings remaining are paid to the United States as a franchise tax, the Federal Reserve Bank being allowed by law to retain the remaining 10 per cent as a further addition to its surplus. Although the discounts for member banks during 1921 have been much smaller in amount than in 1920, the number of bills and notes discounted increased by about 200,000, or from approximately 1,000,000 pieces in 1920 to about 1,250,000 in 1921. The number of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. cheeks and drafts which passed through the transit departments of the Federal Reserve Banks during the year 1921 has also shown a material increase, notwithstanding a marked decline in the aggregate amount in dollars. This increased volume of business, together with the further broadening of services extended to member banks and the assumption on July 1 of fiscal agency expenses, which hitherto had been reimbursed by the Treasury, has resulted in a comparatively small increase in operating expenses. In order to care properly for the increased volume of transactions, as above indicated, some of the Federal Eeserve Banks have found it necessary to increase slightly the number of their officers and employees as may be seen from the following table: OFFICERS AND EMPLOYEES. Average salary as of Number Dec. 31— Dec ^31, exclusive of bonus. Federal Reserve Bank. 1921 1920 D2I ; 1920 Boston. 734 776 -$1,564 : $1,405 New York 2 907 2 936 1 628 1 580 Philadelphia 897 S42 1 431 1 375 Cleveland 977 969 1,583 1, 492 Richmond 745 667 1 390 1 346 Atlanta 4«2 446 1,519 ! L.445 Chicago 1 728 1.731 1 558 L 414 St. Louis 762 851 1,484 : L. 339 Minneapolis 467 459 1 479 > I 392 Kansas Cifcv 894 863 1.612 ! L,309 Dallas 637 613 1 573 I L 414 San Francisco 1,267 1,132 1.673 i 1,482 Total 12,497 12,285 1.565 ; L, 447 In consequence of the partial or total discontinuance of bonus payments by the Federal Reserve Banks, it has been necessary in some cases to make slight advances in the basic salaries paid to employees and to junior officers. If bonus payments which during 1920 generally ranged from 10 per cent for junior officers and senior employees to 20 per cent for junior employees are considered in connection with the salaries given above, it will be found that the salary adjustments have not resulted in an increase in the average compensation paid to officers and employees. The following table taken from the Board's reply of October 31, 1921 (S. Doc. Xo. 75), to Senate resolution 153 shows that the average annual salary paid to officers of the Federal Eeserve Banks, as of October, 1921. was $7,743, as compared with an average annual salary of $13,092 paid by the larger member banks in Federal Reserve Bank cities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 REPORT OF THE FEDERAL RESERVE BOARD. AVERAGE ANNUAL SALAKIES PAID TO OFFICERS OF EACH FEDERAL RESERVE BANK AND BY THREE OF THE LARGER MEMBER BANKS IN EACH FEDERAL RESERVE BANK CITY AS OF OCTOBER. 1921. [Bonus excluded.] Federal Reserve district. R F B e e a s d e n e r r k v a . e l M b e a m nk b s e . r Federal Reserve district. R F B e e a d se n e r k r v a . e l M ba e n m k b s e . r Boston $9,679 i $14,745 St. Louis.. $7,078 $11,675 New York 12, 745 i 17,331 Minneapolis ! 6,478 i 10. 621 Philadelphia 10. 125 15, 733 Kansas City ; 6. 147 j 10; 313 Cleveland 7,792 i 10, 061 Dallas 5:512 I 8, 767 Richmond 6,696 ! 6,473 San Francisco \ 6', 459 I 11,409 Atlanta 5.677 i 7,828 Chicago 7,946 i 15,440 System. 7, 743 I 13, 092 1 Six national banks. It will be noted from the above table that the average annual salary ($13,092) paid by the larger member banks in Federal Reserve Bank cities was 69 per cent in excess of the average annual salary paid by all Federal Reserve Banks. The Board has already given the Senate full and detailed information in the Senate document above referred to regarding the salaries paid officers and employees by the Federal Reserve Banks and regarding their investments in banking houses and equipment, and in order that this information may be preserved and more generally disseminated the letter and exhibits which were sent to the Senate are reprinted on pages 359-491 of this report. The Federal Reserve Bank of Dallas is now the only one whose net earnings have not yet been sufficient to enable it to accumulate a surplus equal to its subscribed capital, as authorized by the act of March 3, 1919, amending section 7 of the Federal Reserve Act. All other Federal Reserve Banks have accumulated surplus funds in excess of their subscribed capital, the Federal Reserve Bank of New York in 1919, the Federal Reserve Banks of Boston, Philadelphia, Richmond, Atlanta, Chicago, Minneapolis, Kansas City, and San Francisco in 1920, and the Federal Reserve Banks of Cleveland and St. Louis in 1921. In the table below are shown the 100 per cent or normal surplus and the additional surplus, called for convenience the " super-surplus," which is created by carrying to surplus account 10 per cent of net earnings after the normal surplus is equal to 100 per cent of the subscribed capital, also the ratio of total surplus to subscribed capital stock of each Federal Reserve Bank on January 1, 1922. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

49 REPORT OF THE FEDERAL RESERVE BOARD. [.Vmounts in thousands of dollars.] Surplus Jan. 1, 1922. i Ratio of surplus to •! Subscribedsubscribed Federal Reserve Bank. i capital, capital, Normal j Super- Total, j Jan. 1,1922. Jan. 1,1922 surplus. I surplus. (percent). Boston 612 16,483 i 15,871 103.9 New York 5,969 60.197 i 54, 228 111.0 Philadelphia... 472 17.945 17,473 102.7 Cleveland 366 22; 634 22,268 101. 6 Richmond 173 11.030 10,857 101. 6 Mlanta 735 9; 114 S, 379 108. 8 Chicago 411 29,025 i 28, 614 101,4 St. Louis 182 9'. 388 9,206 102.0 Minneapolis 330 7,468 7,138 104, 6 Kansas City 505 9,646 : 9,141 105. 5 Dallas * 7.394 • 8,406 88.0 San Francisco.. 14 450 15^199 ! 14,749 103.1 Total. 205,318 10,205 215,523 206,330 104.5 The question having arisen as to the amount that a Federal Reserve Bank might properly charge off each year for depreciation on the bank buildings owned by it. the Board lias ruled that Federal Reserve Banks may charge against current net earnings each year an amount not in excess of 2 per cent of the cost of their buildings, exclusive of land. Should a Federal Reserve Bank desire to charge off an additional amount or to provide a reserve for depreciation on its building, the charge must be made against supersurplus and not against current net earnings. Thus the amount of franchise taxes payable to the United States is not affected by writing down immediately the book value of banking houses to an amount which represents normal or prewar costs of construction. Out of their net earnings during 1921, after the payment of dividends, the Federal Reserve Banks transferred $9,329,000 to their normal surplus accounts, $6,664,000 to their supersurplus accounts, and paid $59,974,000 to the United States Treasury as a franchise tax. The table below shows the gross and net earnings of each Federal Reserve Bank for the year 1921, the amount of dividends paid, the amount transferred to surplus account mid the amount paid to the United States as a franchise tax. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 REPORT OF THE FEDERAL RESERVE BOARD. | Amounts in thousands of dollars.] Net earn-; Fran- Federal Reserve Bank. e C ar u n n r i e r n e t g n s t . d c e u N b n r i r e e t e s t t n t t o in s a ( g u b le r s l p n e a l d v u f s o a s , r i , l - ! \ :Di p v a id y e - nd f a s e T c u r c r r r e o a p d n u lu n s t - s t o . c p U h S a i n s t i a e d it t e e t t a d s o x earnings. andfran-: Government. chise tax.; N Bo ew sto Y n ork 3 6 4 . ,7 9 0 6 5 9 I | 4 4 4 4 8 3 2 4 6, , 0 2 9 8 4 1: J,6 4 0 7 9 3 ! 3,7 / 8 i 3 2 ; 2 3 0 , , 0 7 3 02 6 Philadelphia 8,008 <: 198 5,339 : 518 935 ' 3,886 Cleveland 9,391 ! 150 6,284 ! 660 2,329 i 3,295 Richmond 6,730 I 209 4,394 322 694 ! 3,378 Atlanta 7,407 i 330 5,496 246 770 4,480 Chicago... 20,382 ' 1.025 14", 505 854 : 2,075 11,576 St. Louis 5,166 ' 253 2'. 952 i 270 1", 043 1,639 Minneapolis 4,966 : 489 3.151 212 488 2,451 Kansas City 5,713 ! 246 3,056 268 487 2,301 Pallas ' 4,244 ; 769 1,614 ; 1,362 . San Francisco 9,184 ! 447 4'. 921 430 1,255 ; 3,230 Total 122,865 j 86,798 : 4,711 6,120 15, 993 59,974 1 Credit The following table shows the total payments of franchise taxes to the United States by each Federal Reserve Bank up to the present time: FRANCHISE TAXES PAID TO THE UNITED STATES GOVERNMENT. Federal Reserve Bank. 1917 1919 1920 ; 1921 Total. Boston.... $75, 100 $2 473 499 j $3,035,920 $5,584,519 New York. . .... 649,363 - $2,703,894 39;318.511 ! 20,702,440 63,374,208 Philadelphia 363J662 | 3,886,552 4,250,214 Cleveland.. 3 294 713 3 294 713 Richmond.. . . 116,472 P 204.585 i 3,377,532 3,698,689 Atlanta 40,000 2,136^28,^ i 4,480,251 6,656,539 Chicago... 215.799 10,394,480 j 11,576,009 22,186,288 St. Louis.. 1 639 109 1 639 109 Minneapolis .. 37 500 524,234 ! 2,450,967 3,012,701 Kansas Citv 2,240,228 ; 2,300,55S 4,540,786 San Francisco 3,069,255 3,230,315 6.299,570 Total 1,134,234 2,703,894 \ 60,724,742 j 59,974,466 124,537,336 RESERVES FOR SELF-INSURANCE AND UNDETERMINED LOSSES. The Federal Eeserve Banks have been authorized to set up reserves during 1921 for self-insurance, and to cover undetermined and possible losses arising from their dealings with banks which have failed or suspended, as follows: i Reserved i Reserved Federal Reserve Bank. : for self- I for posi insurance, sible losses. Boston New York i $250,000 Philadelphia ' Cleveland ; 100,000 $100,000 Richmond I 50,000 100,000 Atlanta ' 250,000 Chicago i 500,000 St. Louis ! 150,000 Minneapolis j 500,000 Kansas City ! 200,000 Dallas ! 561,500 San Francisco j 500,000 Total.. 400,000 | 2,861,500 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 51 BUILDING OPERATIONS. BUILDINGS OF FEDERAL RESERVE BANKS AND BRANCHES. There is given below a tabular statement showing the total cost to December 31, 1921, of bank premises at each Federal Eeserve Bank and branch, and in all cases where it is possible to make an estimate the estimated cost (including land and vaults but excluding furniture, fixtures, and equipment) of buildings when completed. COST OF BANK PREMISES OF FEDERAL RESERVE BANKS AND BRANCHES TO DEC. 31, 1921. Estimated cost of build- Cost to Total cost ing when Cost of Dec. 31,1921, exclusive of completed Federal Reserve Bank or Original remodeling of buildings furniture (including branch. investment. bank in course of and fixtures land and buildings. construction to Dec. 31, vaults but or completed. 1921. excluding furniture and fixtures). Boston.. . ... 1 $1,296,380 $3,643,117 $4,939,497 $5,200,000 New York: Banking house.. 4,797, 882 1,703,074 6,500,956 19,976,368 Annex building 681, 531 1,454,916 2,136,447 2,136,447 Phil•aRdneflfpalhnia 600,000 $1,409,441 2,009,441 2,009, 441 Cleveland ... 910,491 2,104,000 3,014,491 7,538 000 Cincinnati 380,744 380,744 Pittsburgh 515,000 448,417 963,417 963,417 Richmond 208, 729 2,408,905 2,617,634 2,645,783 Baltimore 451,193 451,193 (2) \tlanta 283,000 627,866 910, 866 1,748, 974 Birmingham Jacksonville 45,827 45, 827 (2) Nashville.. 85,000 4,000 89,000 258, 000 New Orleans 1201,250 6,710 207,960 (2) Chicago 2,936,149 4,072,888 7,009,037 10,186,000 Detroit 650 000 650,000 St. Louis 1,051,140 30, 253 1,081,393 (2) Little Rock... 85,008 85,008 (2) Louisville 175,275 560 175,835 Memphis Min H ne el a e p n o a lis... 6 1 0 5 0 , , 0 0 0 0 0 0 1 1 6 6 2 9 , , 3 0 9 7 9 0 1 7 7 6 7 9 , , 3 0 9 7 9 0 (2) 177,399 Kansas City 500,000 3,635,378 4,135,378 4, 875,000 Denver 100 948 100 948 (2) Oklahoma City 65,235 65,235 Omaha 165,000 40,350 205,350 205,350 Dallas 294,902 39,246 1,485,253 1,819,401 1,819,401 El Paso 39,004 107,796 146,800 146, 800 Houston 65 843 220 688 286 531 412 311 San Francisco 405,705 232,895 603,'707 1,242^ 307 4,165,'705 Portland Salt Lake City 1114,075 114,075 (2) Seattle Spokane Total 17,720,311 2,170,909 22,440,020 42,331,240 1 Net cost. * Contracts have not been let nor have plans been approved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 REPORT OF THE FEDERAL RESERVE BOARD. The status of building operations at each Federal Reserve Bank and branch is shown in the following table: Rented quarters are occupied. New or remodeled New building is under construction. Building or buildbuilding is owned ing site purand occupied. chased but re- No property has Less than 50 per More than 50 per modeling or new been purchased. construction not cent complete. cent complete. begun. New York (annex New York. Boston. Cincinnati. Buffalo. building only). Cleveland. Chicago. Jacksonville. Birmingham. Philadelphia.1 Minneapolis.2 Houston. Nashville. Memphis. Pittsburgh. Atlanta.5 New Orleans. Los Angeles. Richmond.3 San Francisco.7 Detroit. Portland. Baltimore.4 St. Louis. Seattle. Atlanta.** Little Rock. Spokane. Louisville. Denver. Helena. Oklahoma City. Kansas City.3 Salt Lake City. Omaha, e Dallas. El Paso. San Francisco.f 1 Iii addition, storage space is rented at $1,500 per year. 2 Foundation work has been completed but final plans for building have not yet been approved and no contracts have been let for superstructure. 3 New construction nearing completion. 4 No remodeling done. A new site has been purchased, and it is proposed to sell the building now occupied. 5 New building completed in 1918, but annex is now under construction. 6 Further remodeling and vault construction contemplated. 7 Part of the property purchased was remodeled and is now occupied, but additional quarters are rented pending completion of construction. Detailed information regarding property purchased by each Federal Reserve Bank for the head office and for branches is given below. Owing to declining costs of building operations the actual investments will probably be considerably less than the estimated amounts. July, 1918: Purchased property at Pearl and Milk Streets, covering 14,333 square feet, for $1,000,000. Property sold in November, 1919, for $1,150,000. August, 1919: Purchased property bounded by Pearl, Franklin, and Oliver Streets, covering 40.330 square feet (on which stood old buildings razed in 1920), for $1,411,500. The net cost of property to the bank, after paying preliminary expenses connected with purchase and deducting profits on property at Pearl and Milk Streets, was $1,296,379.78. Total cost to December 31, 1921, of new building in course of construction, $3,643,117; estimated cost upon completion, including cost of land, $5,200,000; estimated cost of additional furniture and fixtures, $100,000. NEW YORK. June, 1918: Purchased property for banking house site at corner of Liberty, Nassau, and Maiden Lane. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 53 February, June, 1919: Purchased adjoining properties running through from Liberty Street to Maiden Lane. Total cost of property purchased in 1918 and 1919, which covers 45,950 square feet, was $4,797,881.72. Total cost to December 31, 1921, of new building in course of construction, $1,703,074; estimated cost upon completion, including cost of land, $19,976,368. Building will not be completed for about two years, and there is no basis at present on which to estimate the cost of furniture and fixtures. April, July, 1920: Purchased, for annex building site, properties at corner of Gold Street and Maiden Lane and at 10 Gold Street and at 89 Maiden Lane at a total cost of $681,531.17; total cost, including land, $2,136,447; cost of furniture and fixtures, $66,730.78. The annex building is commercial in type and was constructed with a view to its sale if not needed upon completion of the main building. BUFFALO BRANCH. No purchase has been made of bank premises for the use of the Buffalo branch, which occupies leased quarters. PHILADELPHIA. December, 1917: Purchased Horner Building on Chestnut Street, covering 19,205 square feet, which is now occupied as banking house, for $600,000. Cost of remodeling building and construction of vault, $1,409^441; cost of furniture and fixtures, $413,033.82. CLEVELAND. February, 1919: Purchased Masonic Temple property at Superior and Rockwell Streets, consisting of one five-story and two four-story buildings and covering 29,763 square feet, for $910,491, including preliminary expenses connected with purchase. In July, 1920, bank contracted for purchase of adjoining property, covering 13,000 square feet, for $375,000. Total cost to December 31, 1921, of new building in course of construction, $2,104,000; estimated cost upon completion, including cost of land, $7,538,000; estimated cost of additional furniture and fixtures, $150,000. CINCINNATI BRANCH. October, 1920: Purchased property at Fourth and Race Streets, covering 13,172 square feet, for $380,744, including preliminary expenses connected with purchase. Building operations not begun. PITTSBURGH BRANCH. February, 1920. Purchased property at Ninth Street and Liberty Avenue, covering 4,144 square feet, for $515,000, on which is a 10- 85227—22 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 EEPORT OF THE FEDERAL RESERVE BOARD. story building now occupied by the branch as a banking house. Total cost of remodeling. $448,417.36. Cost of furniture and fixtures, $76,053.86. RICHMOND. July, 1916: Purchased property at Ninth and Franklin Streets, covering 11,444 square feet, for $128,435, including preliminary expenses connected with purchase. May, 1919: Purchased Virginia Hotel property at Eighth and Franklin Streets, covering 4.455 square feet, and separated from above property by a 20-foot alley, for $80,293.90. Total cost of building in course of construction to December 31, 1921, $2,408,905. Estimated cost of building when completed, including cost of land, $2,645,783. Cost of additional furniture and fixtures, $153,776. BALTIMORE BRANCH. Fall of 1917: Purchased the National Mechanics Bank Building, covering 4,840 square feet, for $200,000, which has been occupied since the opening of the branch in 1918 as a banking house. Cost of furniture and equipment since establishment of branch, $94,606.31. June, 1920: Purchased property, covering 12,500 square feet, at corner of Calvert and Lexington Streets, for $251,192.90. This consists of three pieces of property rented to various tenants, possession to be had at end of 1921, except from one tenant whose lease runs to October, 1924. Branch expects to sell the National Mechanics Bank Building after building proposed banking house on the Calvert Street property. ATLANTA. October, 1916: Purchased the First Presbyterian Church property, covering 18,180 square feet, on Marietta Street, for $102,500. The old church building on back of lot was utilized in new bank building, which was constructed at a cost of $417,400, including $14,630 for furniture and fixtures. January, 1921: Purchased the adjoining ground, covering 18,000 square feet, for $180,500. Cost to December 31, 1921, of addition to building in course of construction was $225,094.92; estimated cost upon completion, including cost of land, $1,243,704; estimated cost of additional furniture and fixtures, $10,000. BIRMINGHAM BRANCH. No purchase h&s been made of bank premises for the use of the Birmingham branch, which occupies leased quarters. JACKSONVILLE BRANCH. October, 1921: Purchased property covering 4,770 square feet at corner of Hogan and Church Streets for $45,826.96, including pre- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 55 liminary expenses connected with purchase. Building operations not begun. NASHVILLE BRANCH. July, 1921: Purchased two-story building and lot on Third Avenue, covering 5,267 square feet, for $85,000, possession to be had in January, 1922. It is intended to remodel present building for branch banking house,- at an estimated total cost, including cost of land and present buildings, of $258,000. Estimated cost of furniture and fixtures, $4,000. NEW ORLEANS BRANCH. July, 1919: Purchased the Commercial National Bank Building, on lot covering 8,475 square feet, for $238,750, including preliminary expenses connected with purchase. Actual net cost of site after sale of building to be dismantled and removed, $201,250. Preliminary expenses in connection with new building, $6,710. Plans for building have not been completed; no bids have been called for and no contracts have been let. Therefore, no estimate of total cost can be given. CHICAGO. December, 1918: Purchased the Shedd property, covering 26,400 square feet, bounded by La Salle, Jackson, and Quincy Streets, for $2,936,149.26. Total cost to December 31, 1921, of new building in course of construction, including cost of wrecking old buildings, $4,072,888. Estimated cost upon completion, including cost of land, $10,186,000; estimated cost of additional furniture and fixtures, $250,000. DETROIT BRANCH. December, 1921: Purchased lot covering 13,000 square feet at corner of Fort and Shelby Streets for $850,000, and pursuant to previous agreement immediate^ sold to a bank owning the adjoining property one-fourth, or 3,250 square feet, for $200,000, retaining 9,750 square feet on the corner at a cost of $650,000. Plans for building have not been approved and no contracts have been let. ST. LOUIS. January, 1919: Purchased property occupied by the St. Louis Union Trust Co., corner Locust and Fourth Streets, and three adjoining properties on Fourth Street, covering 20,367 square feet, for $540,461.50. January, 1920: Purchased adjoining property, covering 8,274 square feet, on Locust Street, running north from alley to Broadway T for $510,678.50; purpose being to build on this site an addition to the banking house on the above property or to sell this second prop- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 REPORT OF THE FEDERAL RESERVE BOARD. erty if found that a larger building is not required. Cost to December 31,1921, of dismantling improvements on property, $29,600. Old elevator parts were sold for $225. Plans for building have not been approved and no contracts have been let. LITTLE ROCK BRANCH. January, 1921: Purchased vacant lot, covering 8,000 square feet, at corner of Third and Louisiana Streets, for $85,007.50. Plans for building have not been approved and no contracts have been let. LOUISVILLE BRANCH. May, 1919: Purchased National Bank of Commerce Building, Fifth and Market Streets (5,550 square feet), for $150,275, which is now occupied by branch as banking house. Cost of furniture and fixtures, $45,315. August,1920: Purchased adjoining vacant lot, covering 2,340 square feet, for $25,000, for purpose of building addition to above banking house. Building operations not begun. November, 1921: Federal Reserve Board authorized bank to purchase adjoining lot covering 3,135 square feet at a cost of $27,500. MEMPHIS BRANCH. No purchase has been made of bank premises for the use of the Memphis branch, which occupies leased quarters. MINNEAPOLIS. November, 1919: Purchased property, covering 25,575 square feet, at corner of Marquette Avenue and Fifth Street, for $600,000, Total cost to December 31, 1921, of new building in course of construction, $169,070. Foundation work has been completed but final plans for building have not yet been approved and no contracts have been let for superstructure. HELENA BRANCH. January, 1920: Purchased property of Independent Telephone Co., covering 2,475 square feet, including modern, fireproof one-story building, for $15,000. Cost of remodeling building and constructing vault, $162,399. Cost of furniture and fixtures, $36,000. This building has been occupied since the opening of the branch in February, 1921. KANSAS CITY. July, 1918: Purchased property, covering 16,675 square feet, at corner of Tenth Street and Grand Avenue, for $500,000. Cost to December 31, 1921, of banking house in course of construction, $3,635,378; estimated cost of completed building, including cost of land, $4,875,000; estimated cost of fixtures and additional furniture, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 57 $235,000. Although not entirely completed, the above building is now occupied by the Federal Reserve Bank. DENVER BRANCH. October, 1921: Purchased property, covering 25.785 square feet, at corner of Eighteenth and Curtiss Streets, for $100,948. including preliminary expenses. Plans for building have not been completed, no bids have been called for, and no contracts let. OKLAHOMA CITY BRANCH. August. 1921: Purchased property, covering 10,500 square feet, at corner of Third and Harvey Streets, for $65,235. including preliminary expenses. Building plans have not yet been approved, no bids have been called for, and no contracts let. OMAHA BRANCH. May, 1920: Purchased the Farnum Building, a five-story and basement stone and brick building, covering 8,712 square feet, then leased by branch as banking quarters, for $165,000. Cost of remodeling to December 31, 1921, $40,350. Cost of furniture and fixtures, $55,000. DALLAS. August, 1915 : Purchased for $112,500 five-story and basement fireproof building at Commerce and Martin Streets, covering 2,500 square feet, which had been leased by the bank since April, 1915. Cost of remodeling building, $39,246. November, 1918: Purchased property at corner of Wood and Akard Streets, covering 29,233 square feet, for $145,783.39. In the fall of 1920 the Thomas property, adjoining the above, on Wood Street and covering 4,500 square feet, was purchased for $36,619.40. Cost of completed bank premises, including land and cost of remodeling original buildings, $1,819,401; estimated cost of additional furniture and fixtures $107,389. Bank proposes to sell old* building at Commerce and Martin Streets. EL PASO BRANCH. July, 1919: Purchased lot, covering 6,000 square feet, on Myrtle Avenue, for $39,003.50, on which a two-story building, costing $107,796.03 was erected as a permanent banking house and occupied by branch in August, 1920. Cost of fixtures and additional furniture, $9,224.41. HOUSTON BRANCH. October, 1920: Purchased site covering 10,000 square feet at Fannin Street and Prairie Avenue for $65,842.74. Cost to December Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 REPORT OF THE FEDERAL RESERVE BOARD. 31, 1921, of building in course of construction, $220,688; estimated cost of additional furniture and fixtures. $5,000. SAN FRANCISCO. Summer of 1917: Purchased end of block bounded by Commercial, Sansome, and Sacramento Streets, and in spring of 1918 purchased remainder of block to Battery Street.' Total property purchased covers 32,863 square feet and cost $405,705.37. Remodeled and occupied part of property as banking house at cost of $232,895. Cost to December 31, 192l/of new building in course of construction, $603,707. Estimated cost of building completed, including cost of land, $4,165,705. Cost of additional furniture and fixtures has not yet been estimated. LOS ANGELES BRANCH. No bank premises have been purchased for the use of the Los Angeles branch, which occupies leased quarters. PORTLAND BRANCH. No bank premises have been purchased for the use of the Portland branch, which occupies leased quarters. SALT LAKE CITY BRANCH. • January, 1921: Purchased for $115,080.36 property covering 27,225 square feet at corner of South Temple and State Streets. Nothing has been done toward preparation of building plans and no estimate of cost, therefore, can be given. SEATTLE BRANCH. No bank premises have been purchased for the use of the Seattle branch, which occupies leased quarters. SPOKANE BRANCH. No bank premises have been purchased for the use of the Spokane branch, which occupies leased quarters. GOLD SETTLEMENT FUND. . There has been no important change during the year in the method of operating the gold settlement fund, w^hich has been fully explained in previous reports. All Federal Reserve Banks and 16 branches now settle through the fund, the only addition during 1921 being the Helena branch of the Federal Reserve Bank of Minneapolis, which opened for business February 1, 1921. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 59 Combined clearings and transfers through the fund during the year amounted to $68,223,882,000 compared with $92,625,805,000 in 1920, $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 $318,826,850,000 since the inception of the fund on May 20, 1915. The average weekly volume of clearings and transfers combined for each }^ear since the fund was established is shown below : 1923 $1, 311, 998, 000 1917 $522, 206,000 1920 1, 781, 265, 000 1916 106, 422, 000 3919 1, 422, 774, 000 1915 31,898, 000 1918 966, 877, 000 For the week, September 16-22, combined clearings and transfers aggregated $1,663,696,858.52, the record figure for the year. Unusual transactions during that week affecting the gold settlement fund operations included transfers of funds in connection with payments incident to the sale and redemption of Treasury certificates and transfers incident to the payment of interest due September 15 on Liberty loan issues. The total expense of operation for 1921, including the rental of leased telegraph wires and clerical services, was approximately $485,000, an increase of approximately $115,00& over the cost of operation for the year 1920. The increase is accounted for largely by the fact that since July 1, 1921, the Board has been obliged to pay a rental charge for leased telegraph wires fixed on the basis of commercial rates instead of on the basis of governmental rates which prevailed before that date. STATE BANK MEMBERSHIP. Further increases in membership of State banks and trust companies are shown for the year, though the net gain in number of banks was not as large as during 1920, due to liquidation of some State bank members and conversion of others into national banks, and to the withdrawal from membership of a number of institutions of relatively small size. At the end of the year there were 1,621 State bank and trust company members of the Federal Reserve System with aggregate capital and surplus of $1,118,587,000 and total resources of $9,910,756,000, as compared with 1,481 banks having a combined capital and surplus of $1,035,023,000 and resources of $9,826,794,000 on December 29, 1920. The figures by Federal Eeserve districts for both years are as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

60 REPORT OF THE FEDERAL RESERVE BOARD. [Amounts in thousands of dollars.] Dec. 31,1921. Dec. 29,1920. Federal Reserve district. Capital Capital Number. su a r n pl d us. res T o o u t r a c l es. Number. su a rp n l d us. res T o o u t r a c l es. Boston 40 75,350 724,523 39 73,537 724,063 New York... 133 365,377 3,734,967 134 362,810 3,929,629 Philadelphia. 51 76,417 389, 520 46 73,051 382,301 Cleveland.... 115 146,812 1,019,144 111 111,480 879,621 Richmond 66 25,589 153,148 56 24,281 158,937 Atlanta 127 45,642 333,829 84 41,389 352,480 Chicago 377 187,183 1,769,952 358 179,732 1,774,753 St. Louis 105 53,111 417,959 91 49,246 386,546 Minneapolis-.. 135 14,398 126,896 116 13,359 122,785 Kansas City.. 44 13,704 151,183 63 12,003 136,221 Dallas 202 21,711 124,654 185 21,110 137,530 San Francisco. 219 85,369 959,085 198 73,025 841,928 Total... 1,614 1,110,663 9,904,860 1,481 1,035,023 9,826,794 A comparison between the number, capital and surplus, and total resources of member banks; of nonmember banks eligible for membership ; and of all banks in the United States other than mutual savings and private banks is made in the table shown below. It will be noted that the resources of member banks of the Federal Reserve System (National and State) constitute 76.6 per cent of the resources of all bankg, both National and State, which are members or are eligible for membership on the basis of capital requirements, and nearly 70 per cent of the banking resources of all banks in the United States (exclusive of mutual savings and private banks) on June 30, 1921, the latest date for which complete data are available. [Amounts in thousands of dollars.] Capital and surplus. Total resources. Number. Per cent of total. Amount. P o e f r t o c t e a n l t . Amount. P o e f r t o c t e a n l. t Member banks: National 8,150 83.6 2,298,981 67.3 19,630,124 66.2 State banks and trust companies.. 1,595 16.4 1,117,448 32.7 10,009,135 33.8 Total: June 30,1921 9,745 100.0 3,416,429 100.0 29,639,259 100.0 June 30,1920 9,399 3,197,473 32,194,301 Member banks and nonmember banks eligible for membership: Member banks 9,745 50.3 3,416,429 74.3 29,639,259 76.6 Eligible nonmember banks 9,640 49.7 1,183,527 25.7 9,034,347 23.4 Total: June 30,1921 19,385 100.0 4,599,956 100.0 38,673,606 100.0 June 30,1920 18,257 4,305,804 41,361,856 All banks in the United States, exclusive of mutual savings and private banks: Member banks 9,745 33.1 3,416,429 67.6 29,639,259 69.6 Nonmember banks 19,732 66.9 1,638,019 32.4 12,928,966 30.4 Total: June 30,1921 29,477 100.0 5,054,448 100.0 42,568,225 100.0 June30,1920 28,715 4,750,786 46,023,671 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 61 The relative size of State bank and trust company members as compared with eligible nonmember banks is illustrated in the subjoined tables, in which banks having* combined capital and surplus of $1,000,000 or over are shown in Group I, and banks having a combined capital and surplus of less than $1,000,000 in Group II. From an examination of these tables it will be seen that over 80 per cent of the total resources of the larger banks, or those in Group I, belong to members of the system, whereas in Group II, which is made up of the smaller banks throughout the country, only about 21 per cent of the resources are controlled by members of the system. Of the 1.595 State bank and trust company members, however. 1,396—or 88 per cent—are shown as having a combined capital and surplus of less than $1,000,000. I. STATE BANKS AND TRUST COMPANIES WITH COMBINED CAPITAL AND SURPLUS OF $1,000,000 OR MORE. [Amounts in thousands of dollars.] Number. Capital and surplus. Total resources. Federal reserve district. Mem- Eligible Mem- Eligible Mem- Eligible bers. no b n e m rs e . m- bers. no b n e m rs e . m- bers. no b ii e m rs e . m- Boston 18 64,022 12,662 594,970 97,492 New York 50 353,699 71,622 3,605,453 543,178 Philadelphia... 13 63,086 67,447 309,321 297,726 Cleveland 20 122,155 44,431 853,087 237,408 Richmond 11 16,965 41,250 104,307 187,759 Atlanta 13 30,050 1,200 247,380 10,798 Chicago 36 138,750 30,235 1,271,907 214,505 St. Louis 12 35,500 8,350 254,902 46,667 Minneapolis 4,400 18,605 Kansas City 11,.215 1,250 123,214 3,065 Dallas 4,785 2,475 26,825 12,937 San Francisco.. 56,957 19,819 691,488 275,336 Total: June 30,1921. 199 130 897,184 305,141 8,082,854 1,945,476 June 30, 1920. 182 132 794,226 299,900 8,044,347 2,050', 810 Per cent: June 30, 1921. 60.5 39.5 74.6 25.4 I 80.6 19.4 June 30, 1920. 58.0 42.0 72.6 27.4 79.7 20.3 II. STATE BANKS AND TRUST COMPANIES WITH COMBINED CAPITAL AND SURPLUS OF LESS THAN $1,000,000. [Amounts in thousands of dollars.] Number. Capital and surplus. Total resources. Federal reserve district. Mem- Eligible Mem- Eligible Mem- Eligible bers. no b n e m rs e . m ' - bers. no b n e m rs e . m- bers. no b n e m r s e . m- Boston 23 164 11,340 32,591 114,920 375,584 New York 84 251 24,117 53,488 297,956 544,185 Philadelphia 35 283 11,473 59,735 81,581 436,657 Cleveland 93 629 21,625 82,521 188,305 mg, 685 Richmond 51 780 7,993 82,841 47,964 562,436 Atlanta 103 777 14,246 62,328 76,548 465,126 Chicago 328 2,405 47,354 197,843 481,127 1,740,056 St. Louis 90 1,125 16,784 82,508 145,907 581,439 Minneapolis 133 849 14.741 46,091 126,369 422,209 Kansas City 57 1,093 6,392 68,874 54,818 515,026 Dallas * 201 528 18,313 37,932 101,463 210,457 San Francisco 198 626 25;886 7i; 634 209,323 566,011 Total: June 30,1921 1.396 9,510 220,264 878,386 1,926,281 7,088,871 June 30, 1920 I'l92 193,970 808,431 1,962,495 .7,116,745 Percent: June 30,1921 12.8 87.2 20.0 80.0 21.4 78.6 June 30,1920 12.0 88.0 19.4 80.6 21.6 78.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

€2 REPORT OF THE FEDERAL RESERVE BOARD. APPROXIMATE DISTRIBUTION OF BANKING POWER BETWEEN MEMBER AND NONMEMBER BANKS. The following figures have been prepared with a view of ascertaining the approximate distribution of banking power in the several States between banks which are members and banks which are not members of the Federal Reserve System. The figures in the first column show the proportion that the capital, surplus and undivided profits, and deposits of nonmember banks bears to the corresponding items for all banks within a given State. The figures in the second column show the proportion that the number of nonmember banks bears to the number of all banks within a given State. "All banks" are taken (with a few minor exceptions in some States) to include National and State banks, trust companies, and savings banks having capital stock. Data given in the report of the Comptroller of the Currency for 1920 were used as the basis for all calculations. All figures are as of June 30, 1920. Banking power Number State. State. m o e f m no b n e - r m o e f m no b n e - r banks.1 banks. Per cent of total Per cent banking of total power. banks. Maine Ohio 31 55 New Hampshire Indiana 52 69 Vermont Illinois 31 63 Massachusetts Michigan.. 24 60 Rhode Island Wisconsin. 49 81 Connecticut Minnesota. 45 76 Iowa 61 | 74 Total, New England Missouri... 45 90 States Total/Middle Western i New York States 39 73 New Jersey Pennsylvania North Dakota.. 79 Delaware South Dakota. 78 Maryland Nebraska 83 Washington, D. C Kansas 81 Montana 56 Total, Eastern States.. 22 36 Wyoming 70 Colorado 64 Virginia 34; 63 New Mexico... 55 West Virginia 49 ' 62 Oklahoma 62 North Carolina 54 ; 84 South Carolina 57 •; 79 Total, Western States. 74 Georgia 48 ! 83 Florida 44 ; 77 Washington. 31 65 Alabama 32 67 Oregon 29 59 Mississippi 78 ! 91 California 37 53 Louisiana 35 81 Idaho 30 45 Texas 26 ' 55 Utah 30 54 Arkansas 50 77 Nevada 61 70 Kentucky 46 ! 75 Arizona 60 72 Tennessee 42 ; 80 ¥ Total, Pacific States 36 5? Total Southern States... 42 72 Grand total 33 ! 67 i Sum of capital, surplus, undivided profits, and total deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CD a- H / \ • go J v^. s B > &• P rt- O o w o o w r-h g1 P : o hrj o H cr P 1JSQ.C- ^< w ^6^/VA- § o hrf P H^1 §'^ STATES IN WHICH 75% OR MORE P O OF THE BANKS ARE NOT MEMBERS p O of tfie FEDERAL RESERVE SYSTEM. STATES IN WHICH BETWEEN 5O&75% g 3- OF THE BANKS ARE NOT MEMBERS of tfie FEDERAL RESERVE SY5TEM. cop P O STATES IN WHICH LESS THAN 50% P O OF THE BANKS ARE NOT MEMBERS of tfie FEDERAL RESERVE SYSTEM. FIGURES ARE PERCENTAGES OF N0N-MEMBER5 TO TOTAL BANKS O p MAP SHOWING, BY STATES, THE PERCENTAGE OF THE NON-MEMBER BANKS TO THE TOTAL NUMBER OF BANKS (National SState) 00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

64 REPORT OF THE FEDERAL RESERVE BOARD. $1,447,000,000 in farm mortgage loans on December 31, 1920, according to an estimate recently made by the United States Department of Agriculture. These figures are based on returns received from 13,540 banks in the United States, constituting about 45 per cent of all the banks of the country. Questionnaires were sent to all the 30,178 banks, but satisfactory returns were obtained from less than one-half of these banks. Personal and collateral loans to farmers constituted 13.3 and farm mortgage loans about 5 per cent of all loans and discounts of the reporting banks. By applying these percentages to the total loans and discounts of national banks as reported by the Comptroller of the Currency for December 29, 1920. and to those of nonnational banks as reported for June 30, 1920, the Department obtained the estimates just given. The following table shows the number of banks reporting and the loans to farmers, by geographic divisions: LOANS TO FARMERS. [Amounts in millions of dollars.] Number of banks. To f ta a l r m lo e a r n s s . to Pe l f r a a s t r o e m n ra e a l r l s . l a o n a d n s co t l o - Farm l o m an o s r . tgage Reporting. Per Per Per cent- cent- cent- Geogra s p i h o i n c . al divi- Total. Per p A r o e r t - t- a l t o a g o n a e t n d a o l s f m E to f a s o t t t a r e i l - d p A r o e r t - t- a l t o a g o n a e t n a d o l s f m E to f a s o t t t a r e i l - d p A r o e r t - t- a l t o a g o n a e t n a d o l s f m E to f a s o t t t a r e i l - d Num- cent ing dis- all ing dis- all ing disber. to o ta f l. banksco a o n f tsbanks.banks.cou o n f ts banks. bankscou o n f ts banks these these these banks. banks. banks. United States 30,178 13,540 44.86 $2,189 18.26 $5,317$1,587 13.29 $3,870 $602 4.97 11,447 New England 1,129 661 58.55 54 4.12 121 12 .92 27 42 3.20 94 Middle Atlantic... 3,009 1,709 56.80 91 1.45 141 72 1.10 107 19 .35 34 East North Central. 5,507 2,645 48.03 454 18.70 991 300 12.38 656 154 6.32 335 West North Central 9,086 3,726 41.01 799 54.63 2,094 595 40.77 1,563 204 13.86 531 South Atlantic 3.294 1,312 39.83 146 18.64 407 117 14.34 313 29 4.30 94 East South Central. 1,840 881 47.88 111 30.76 287 75 19.93 186 36 10.83 101 West South Central 3,305 1,072 32.44 160 38.67 615 145 34.07 542 15 4.60 73 Mountain 1,601 745 46. 53 145 43.04 324 121 35.61 268 24 7.43 56 Pacific 1,407 789 56.08 229 18.10 337 150 11.16 208 79 6.94 129 These estimates of the Department of Agriculture may be compared with estimates made by the Board for all member banks on May 4, 1920, and April 28, 1921. The Board's estimates are based on member bank reports on call dates to the Comptroller of the Currency in the case of national banks, and to the Board in the case of nonnational members. The nature of loans made by the banks was not ascertainable from these reports, but the banks were classified in accordance with their location in agricultural, semiagricultural, and nonagricultural counties. Counties whose products, measured by value, were at least 80 per cent agricultural were classed in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

65 REPORT OF THE FEDERAL RESERVE BOARD. first group; counties where the proportion was between 50 and 80 per cent in the second group, and counties where the proportion was less than 50 per cent in the third group. On this basis it appears that of all member bank loans on April 28, 1921, 17 per cent were made bybanks in agricultural counties, 8 per cent by banks in semiagricultural counties, and 75 per cent by banks in nonagricultural counties. It is noteworthy that the percentage of loans for agricultural purposes on the basis of the Board's estimate, 17 per cent, is very close to the department's estimate of 18 per cent, though the two figures were arrived at independently and by different methods. The following table shows the Board's estimates, by Federal Reserve districts: DISTRIBUTION OF MEMBER BANK LOANS, BY CHAEACTEE OF COUNTIES, ON MAY 4, 1920, AND APE. 28, 1921. Amounts in millions of dollars.] Federal Reserve district. Boston 34.5 21.3 New York 161.5 76.4 Philadelphia... 96.8 33.2 Cleveland 160.8 367.8 Richmond 202.1 147.2 Atlanta 154.7 113.3 Dallas 337.2 106.5 Chicago 675.5 291.9 St. Louis 196.2 34.9 Minneapolis 376.0 76.3 Kansas City 353.8 87.0 San Francisco.. 404.5 128. 3 Total 3,190.13,153.6 1,484.11,465.4 14,791.3 13,964.3 75.1 EXCESSIVE BORROWINGS OF MEMBER BANKS. In its annual report for 1919, the Federal Eeserve Board pointed out the fact that were all member banks of a Federal Eeserve Bank to ask for accommodation proportionate to that which had been advanced to a few, the Federal Reserve Bank would not be able out of its own resources to meet the demand, and stated that it was possible to determine theoretically what a fair line of accommodation for any member bank would be; that is, the amount of accommodation which could be granted safely and reasonably with due regard for the claims of other member banks. In order, therefore, to provide some effective means of restricting excessive rediscounting by certain member banks, other than a general increase in discount Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

66 REPORT OF THE FEDERAL RESERVE BOARD. rates which would affect all borrowing banks alike, or the refusal of further accommodation to excessive borrowers, the Board recommended that the Federal Reserve Act be amended to authorize the Federal Reserve Banks, with the approval of the Federal Reserve Board, to determine, by uniform rule applicable to all member banks alike in a given Federal Reserve district, the normal maximum rediscount line of each member bank and to adopt graduated discount rates to apply equally and ratably to all banks rediscounting amounts in excess of the normal line so determined. Although only four Federal Reserve Banks took advantage of the amendment authorizing graduated or progressive discount rates, which became effective on April 13, 1920, all of them have submitted reports regularly to the Federal Reserve Board covering borrowings of member banks in excess of their normal lines which were determined by multiplying 65 per cent of the reserve balances maintained with the Federal Reserve Bank plus the paid-in subscription to the capital stock of the Federal Reserve Bank by two and one-half. With information of this character at hand, the Federal Reserve Board was informed in regard to the situation in each district, as well as its relation to the condition of the system as a whole. The ratio of total borrowings by all member banks to their aggregate basic discount line, which averaged 78 per cent for the 10-day period ending May 20, 1920, when detailed reports were first submitted to the Federal Reserve Board, continued to rise (for the system as a whole) until the middle of December, 1920, when it reached 91 per cent. At the end of October, 1920, when the amount of interreserve bank accommodation reached its maximum, this ratio stood at 88 per cent and the reserve percentage of the system at 43.1 per cent. Since December, 1920, the ratio of borrowings to basic lines has gradually receded, and at the end of December, 1921, total borrowings by all member banks amounted to only 37 per cent of their basic lines. This decrease was brought about by large imports of gold, by the general recession of business, and by the decline in prices, with the consequent return of Federal Reserve notes for redemption. Since the submission of the first reports of borrowings in excess of basic lines the larger banks in the financial and manufacturing centers have reduced their excess borrowings very materially, while an increasing number of the smaller banks, especially in the agricultural sections, have become borrowers in excess of their basic lines. This is evidenced by the fact that while the number of excess borrowing banks has continued to increase the basic discount lines and average borrowings of such banks have declined very sharply as may be seen from the following table: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 67 BANKS BORROWING IN EXCESS OF BASIC LINES. [Amounts in thousands of dollar?.] Number of banks. Basic discount lines. Average borrowings. Federal Reserve district. May 11-Dec. 21- Dec. 16- May 11- Dec. 21- Dec. 16- May 11- Dec. 21- Dec. 16- 20, 1920.31, 1920.31, 1921. 20, 1920. 31, 1920. 31, 1921. 20, 1920. 31, 1920. 31, 1921. Boston 54 54 50 43,385 103, 599 18, 864 61,295 134,778 23,975 New York 114 92 93 265,705 562,301 73,346 349,199 764,004 108, 733 Philadelphia.. 146 108 138 105,485 63,425 32,609 188,650 99.602 50,516 Cleveland 53 34 117 56,563 38,132 28,621 82,769 55', 217 43,360 Richmond 175 237 252 49^310 47,335 34,937 110,446 113,445 83,030 Atlanta 122 255 294 41, 614 58,132 42,465 107,221 163,886 93, 744 Chicago 342 582 558 218,389 222,949 69,432 347,521 415,243 124,374 St. Louis 115 152 168 77,876 54,076 22,507 136,428 95.592 45,007 Minneapolis... 178 203 406 42,199 36,320 16,355 74,882 75^ 265 38,099 Kansas City... 184 380 359 49,133 58 757 22,688 97,739 112,432 38, 588 Dallas *.... 163 408 349 32,927 35,429 19,096 59,084 78,191 43,634 San Francisco. 161 264 192 55,§56 59, 774 12,294 103,864 124,666 34, 887 Total.... 1,807 2,769 2,976 1,038,442 1,340,529 393, 214 1, 719,098 2,232,321 727,947 From the table shown below, it will be seen that while there were about 3,000 banks borrowing in excess of their basic lines at the end of 1921, the ratio of total borrowings of all member banks to the aggregate of their basic discount lines was only 37 per cent, the Federal Reserve district of Atlanta being the only one in which aggregate borrowings of all banks are shown to be in excess of their basic lines. LOANS TO MEMBER BANKS IN EXCESS or BASIC DISCOUNT LINE DURING THE 16-DAY PERIOD DEC. 16 TO 31, 1921. [In thousands of dollars.] All banks borrowing in excess of basic All member banks in district. line. Fede d r i a s l t r R ic e t s . erve N b u a m n of k b s e . r di B s li c a n o s e u i . c nt A bo i v n r e r g r o s a w . ge - Pe 3 r - c 2 e . nt, N o D f e u c b m . a b 1 n e 5 k r . s d l i B i s n c a e o s . i u i c nt b i o T n r o g r t o s a . w 1 l - Pe 3 r ^ c 2 e . nt, 1 2 3 4 1 2 3 4 Boston 50 18,864 23,975 127 436 i 199.825 59.171 30 New York 93 73,346 108, 733 148 800 1,247,695 209,080 11 Philadelphia 138 32,609 50,516 155 704 191,987 88,552 Cleveland 117 28,621 43, 360 151 884 240,600 114,594 Richmond 252 34,937 83,030 238 625 104,780 94,668 48 Atlanta 294 42,465 93, 744 221 513 80,293 90,827 90 Chicagp 558 69,432 124,374 179 1,443 420,913 185,520 113 St. Louis 168 22,507 45,007 200 586 116,502 63,053 44 Minneapolis 406 16,355 38, 099 233 1,023 79,650 51,212 54 Kansas City 359 22, 688 38, 588 170 1,097 128,500 69,979 64 Dallas 349 19, 096 43,634 228 861 80,987 50,597 54 San Francisco 192 12,294 34, 887 284 855 215,238 67,093 62 31 Total 2,976 393, 214 727, 947 185 9,827 3,106,970 1,144,346 37 i i Actual figures as of Dec. 1, 1921. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

68 REPORT OF THE FEDERAL RESERVE BOARD. CHECK CLEARING AND COLLECTION. During the year 1921 there were no very important developments in the Federal Reserve check clearing and collection system. Some of the nonmember banks, desiring to maintain their so-called " exchange " charges, have continued their attempts to limit the check clearing and collection functions of the Federal Reserve Banks in very much the same manner as was described in the Board's annual report for the year 1920. That report discussed the history of the development of the Federal Reserve check clearing and collection system and the issues involved in the controversy over par collection, and fully set forth the considerations which have caused the Federal Reserve Board and the Federal Reserve Banks to feel that the Federal Reserve Act imposes upon them the duty of extending and perfecting the facilities offered by the Federal Reserve System to member banks and to the public for the par clearance of checks. It is necessary, therefore, merely to supplement that previous discussion and bring it up to date. The outstanding feature of the year in connection with check clearing and collection has been the progress of the suit against the Federal Reserve Bank of Atlanta, in which a number of nonmember banks obtained a temporary restraining order prohibiting the Federal Reserve Bank from collecting checks drawn upon them, and the institution of somewhat similar suits against the Federal Reserve Banks of Richmond, Cleveland, and San Francisco. As stated in the Board's last annual report, the United States Circuit Court of Appeals for the Fifth Circuit, after hearing the argument in the suit against the Federal Reserve Bank of Atlanta, handed down its decision in November, 1920, affirming the decision of the United States District Court for the Northern District of Georgia, the District Court having held that it had jurisdiction of the suit and having granted the defendant's motion to dismiss the complaint. The motion to dismiss the complaint was in the nature of a demurrer and was made and argued without the taking of any testimony. An appeal was taken to the Supreme Court of the United States, which heard argument in April, 1921, and rendered its decision on May 16. The decision of the Supreme Court affirmed the decision of the Circuit Court of Appeals so far as the jurisdictional point was concerned, and thereby conclusively established that the United States courts have jurisdiction of all cases against Federal Reserve Banks which involve the requisite jurisdictional amount of $3,000 or more. The Supreme Court did not, however, affirm the decision of the Circuit Court of Appeals with respect to the motion to dismiss the complaint, but on the contrary held that the allegations of the com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 69 plaint were sufficient, if proved, to entitle the plaintiff to some legal remedy. It became necessary, therefore, to try the case upon its merits in the United States District Court for the Northern District of Georgia. The trial was set for November 28, 1921, but due to illness in the family of the judge it was postponed until January 9, 1922. Organized opposition to par clearance has attempted to make much of the decision of the Supreme Court and has distorted its meaning and effect, presumably in order to create the impression that the decision terminates the litigation in favor of the plaintiff banks and is a condemnation of the methods of check collection actually employed by the Federal Reserve Bank of Atlanta. This is entirely contrary to the facts, for, as heretofore stated and as clearly appears from the opinion itself, no evidence has been adduced in support of or against the charges contained in the complaint, and the motion to dismiss raised only the question of the proper construction of the plaintiffs' bill of complaint without in any way attempting to pass upon its truth or falsity. Mr. Justice Holmes said, in rendering the opinion of the court: The question at this stage is not what the plaintiffs may be able to prove, or what may be the reasonable interpretation of the defendants' acts, but whether the plaintiffs have shown a ground for relief if they can prove what they allege. It was believed that the allegations of the plaintiff's bill of complaint, when properly construed, did not even charge the Federal Reserve Bank of Atlanta with action, or intended action, which was illegal. Consequently, very shortly after the institution of the suit, the Federal Reserve Bank of Atlanta moved to dismiss the complaint upon the merits, upon the ground that it did not state facts sufficient to constitute a cause of action, thereby admitting, but only for the purpose of that particular motion, any facts properly alleged in the complaint. The United States District Court and the United States Circuit Court of Appeals took the same view as to the construction of the allegations of the bill of complaint and held that such facts as were properly alleged would not, even if proved, entitle the plaintiff to any relief, but the Supreme Court of the United States took a contrary view and held, in effect, that sufficient facts were alleged to entitled the plaintiffs to relief if they were able to establish those facts by proof. The Board has investigated the charges that have been made against Federal Reserve Banks as to the use of oppressive methods in the collection of checks, and in no case have the facts as brought out sustained the charges. So far as the Board has been able to discover the officers and employees of Federal Reserve Banks have in all cases, and often under the most trying circumstances, conducted themselves 85227—22 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

70 REPORT OF THE FEDERAL RESERVE BOARD. courteously and with consideration toward the banks which have refused to remit at par for checks drawn upon them and have therebymade it necessary for the Federal Reserve Banks to arrange for the counter presentation of such checks. There was no reason for not proceeding immediately with the trial upon the merits in the suit against the Federal Reserve Bank of Atlanta, except that the motion to dismiss the complaint appeared to offer a way for the speedy termination of that suit. In view of the decision of the Supreme Court as to the construction to be placed upon the bill of complaint, it appears that the only effect of the motion to dismiss has been to delay the final decision upon the merits of the issues involved in the litigation. The full text of the opinion of the Supreme Court will be found among the exhibits attached to the complete report. In the Board's annual report for 1920 five States—Mississippi, Louisiana, South Dakota, Georgia, and Alabama—were enumerated as having enacted laws designated to obstruct the par collection of checks by Federal Reserve Banks, these laws purporting to require or permit banks in the respective State to make charges " for collecting and remitting " cash items " which are presented to the payer bank 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." During the year 1921 the legislatures of three other States—North Carolina, Tennessee, and Florida—enacted more or less similar laws for the same purpose. The Legislature of Louisiana also enacted a law purporting to make it a misdemeanor punishable by fine or imprisonment for any person to give any notice of the nonpayment of any check drawn on any bank in that State after such bank has offered to pay the check in accordance with the laws of Louisiana. The North Carolina law just referred to provides that "it shall be lawful for all banks and trust companies in this State to charge a fee, not in excess of one-eighth of 1 per cent, on remittances covering checks," and provides also that all checks drawn on such banks and trust companies "shall, unless specified on the face thereof to the contrary by the maker or makers thereof, be payable at the option of the drawee bank, in exchange drawn on the reserve deposits of said drawee bank when any such check is presented by or through any Federal Reserve Bank, post office, or express company, or any respective agents thereof." Relying upon this law a number of North Carolina State banks and trust companies obtained an injunction in the superior court of Union County, N. C, prohibiting the Federal Reserve Bank of Richmond from refusing to accept "exchange drawn by plaintiffs on their reserve deposits," i. e., checks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL EESERVE BOARD. 71 on correspondent banks, in payment of checks presented and from returning such checks to the drawers thereof as dishonored because plaintiffs have refused to pay same in cash. The trial of this suit will probably be held the latter part of February, 1922, and the final decision will in all probability determine whether or not State legislatures have constitutional authority to enact legislation of this character. In July, 1921, a State bank in Kentucky brought suit against the Federal Eeserve Bank of Cleveland to enjoin the latter from collecting checks drawn upon the plaintiff bank by presentation at the counter, and in September, 1921, a State bank in Oregon brought a similar suit against the Federal Reserve Bank of San Francisco. These suits are still pending before the United States district courts for the respective districts in which the plaintiff banks are located. In neither of the suits has the original bank which instituted it been joined by any other bank as plaintiff. On January 1, 1921, checks on all but 1,755 of the 30,523 banks in the United States could be collected at par through the Federal Reserve Banks, these 1,755 banks being located in the seven Southeastern States of Tennessee, South Carolina, Louisiana, Mississippi, Alabama, Georgia, and Florida. Since that time, due principally to the injunction against the Federal Reserve Bank of Richmond, which prevents that bank from handling checks on such nonmember banks in North Carolina as are parties to the suit heretofore mentioned, the number of such banks has increased to 2,353, which is the figure as of January 1, 1922. In addition to the seven Southeastern States enumerated above, there are banks in each of the following States checks on which are not handled by the Federal Reserve Banks: North Carolina, Nebraska, North Dakota, South Dakota, Minnesota, Oklahoma, Wisconsin, Wyoming, Montana, Kentucky, and Oregon. The aggregate number of such banks in the five last-named States is only 22. The following extract from the Board's annual report for 1920 indicates the Board's views as to the propriety, under present conditions, of the practice of exacting exchange charges: 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 bank is 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 ex- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 REPORT OF THE FEDERAL RESERVE BOARD. change 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. As stated in that report, and as previously stated herein, the Board believes that the terms of the Federal Reserve Act impose upon it, and upon the Federal Reserve Banks, the duty of developing and perfecting the Federal Reserve par collection system, while the opponents of par collection urge the contrary view and even contend that the Federal Reserve Banks are without legal authority to collect, by presentation at the counters of the drawee banks, checks drawn on nonmember banks which are unwilling to remit at par for checks presented through the mails by the Federal Reserve Banks. The events of the last year have not changed or modified the Board's position in this matter. The opinion of the Circuit Court of Appeals of the Fifth Circuit, rendered in the case against the Federal Reserve Bank of Atlanta, is the only judicial opinion which has touched upon this point and that opinion confirmed the Board's construction of the act, saying that— 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 Supreme Court of the United States deemed it unnecessary to pass upon the question of the powers of the Federal Reserve Bank of Atlanta and did not attempt to construe the provisions of the Federal Reserve Act, so that the opinion of the Circuit Court of Appeals still stands as the most authoritative interpretation of the Federal Reserve Act with regard to the Federal Reserve check clearing and collection system. In the following table are given the number and amount of checks and drafts handled by the Federal Reserve Banks during monthly periods in 1921. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 73 ITEMS HANDLED BY ALL FEDERAL RESERVE BANKS COMBINED, EXCLUSIVE OF DUPLI- CATIONS ON ACCOUNT OF ITEMS BEING HANDLED BY MORE THAN ONE FEDERAL RESERVE BANK OR BRANCH. [Numbers in thousands; amounts in thousands of dollars.] Items forwarded Items drawn on direct to mem- Total d it l e e m d. s han- b o F a f e n d k er s r a e l i n p R o d e r i s s t e t i r r n i v c g e t Ite T U m r n e s i a t e su d d r r e a r w S . n ta t o e n s m b o e th r e e s m r a b n F e d e r d s n e o r i n n a - l Month ending— Bank or branch. Reserve districts. Number. Amount. Number. Amount. N b u e m r. - Amount. N b u e m r. - Amount. Jan. 15, 1921 43,481 11,946,417 40,410 11,447,577 3,064 497,064 1,776 Feb. 15, 1921 39,172 9,729,587 36,961 9,283,245 2,204 444,749 7 1,593 Mar. 15, 1921 39,566 9,439,475 37,624 8,909,097 1,937 528,936 5 1,442 Apr. 15,1921 47,021 10,748,339 43,937 10,155,304 3,076 591,167 8 1,868 May 15,1921 42,282 9,325,882 39,038 8,834,578 3,236 489,610 s 1,694 June 15,1921 44,960 9,848,000 42,202 9,366,550 2,749 479,670 1,780 July 15, 1921 43,721 9,854, 512 40,629 9,313,689 3,084 539.347 9 1,476 Aug. 15, 1921 41,865 9,304,290 39,372 8,904,621 2,484 398; 020 8 1,649 Sept. 15, 1921 42,518 9,317,016 40,082 8,904,476 2,427 410,932 9 1,608 Oct. 15, 1921 44,812 10,298,779 41,792 9,828,654 3,010 468,426 9 1,699 Nov. 15, 1921 45,283 9,949,830 42,031 9,510,748 3,241 436,501 10 2,581 Dec. 15, 1921 46,352 10,135,243 43,484 9,736,831 2,858 395,788 11 2,624 10 Total: 1921 521,033 119,897,370 487,562 114,195,370 33,370 5,680,210 101 21,790 1921 446,671 157,499,605 419,905 150,588,027 26,688 6,886,556 78 25,022 Monthly average: 1921 43,419 9,991,448 40,630 9,516,281 2,781 473,351 8 1,816 1920 37,223 13,124,967 34,992 12,549,002 2,224 573,880 7 2,085 FISCAL AGENCY OPERATIONS. During the past year the Secretary of the Treasury completed the discontinuance of the subtreasuries in accordance with the provisions of an act of Congress approved May 29, 1920. The subtreasuries at New Orleans, St. Louis, Baltimore, Philadelphia, and Cincinnati were discontinued on January 5, January 8, January 14, February 3, and February 10, respectively, and the functions and duties heretofore performed by them, as enumerated in the annual report for 1920, are now performed by the Federal Reserve Banks or branches in those cities, with the exception of 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, and the issue of gold order certificates on gold deposits. The special separate instructions issued by the Secretary of the Treasury on August 30, under the provisions of the act of May 29, 1920, authorized all Federal Reserve Banks to make exchanges, replacements, and redemptions of United States paper currency, which operations had previously been performed by subtreasuries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

74 REPORT OF THE FEDERAL RESERVE BOARD. and the following Federal Reserve Banks and branches have undertaken these functions during 1921 on dates as specified: New Orleans Jan. 5, 1921. Spokane Apr. 1, 1921. Baltimore Jan. 14, 1921. Pittsburgh Apr. 4, 1921. Cincinnati Feb. 10, 1921. Atlanta June 10, 1921. Helena Mar. 1, 1921. Jacksonville June 10, 1921. Cleveland Mar. 2, 1921. Birmingham June 10, 1921. Dallas Mar. 22, 1921. Nashville June 10, 1921. Los Angeles Apr. 1, 1921. Omaha Oct. 29, 1921. Portland Apr. 1, 1921. Denver Oct. 29, 1921. Salt Lake City Apr. 1, 1921. Oklahoma City Oct. 29, 1921. Seattle Apr. 1, 1921. The Secretary of the Treasury, on October 19, 1920, under the provisions of the act of May 29, 1920, authorized all Federal Eeserve Banks to make exchanges and redemptions of United States coin, which functions were previously performed by the subtreasuries, and during 1921 the following Federal Reserve Banks and branches have undertaken these operations on dates as specified: New Orleans Jan. 5, 1921. Cleveland May 19, 1921. St. Louis Jan. 8, 1921. Atlanta June 10, 1921. Baltimore Jan. 14, 1921. Jacksonville June 10, 1921. Louisville Jan. 26, 1921. Birmingham June 10, 1921. Memphis Jan. 26, 1921. Nashville June 10, 1921. Little Rock Jan. 26, 1921. Omaha Oct. 29, 1921. Minneapolis Feb. 1, 1921. Denver Oct. 29, 1921. Philadelphia Feb. 3, 1921. Oklahoma City Oct. 29, 1921. Cincinnati Feb. 10, 1921. Detroit -Nov. 18, 1921. Helena Mar. 1, 1921. Buffalo Nov. 18, 1921. Dallas Mar. 22, 1921. The Federal Reserve Bank of Richmond and the branches named below had not assumed the operations relating to replacements, exchanges, and redemptions of United States paper currency and coin up to December 31 because of lack of adequate facilities: Currency and coin: El Paso, Houston. Coin: Pittsburgh, Los Angeles, Salt Lake City, Seattle, Portland, and Spokane. It is expected, however, that the Federal Reserve Bank of Richmond and most of the above-named branch banks will take over these functions early in 1922. The closing of the subtreasuries and the assumption of their principal duties by the Federal Reserve Banks has resulted in improved currency and coin facilities to the country. The location and banking connections of the Federal Reserve Banks and their branches afford a more convenient and natural method for the proper distribution of paper currency fit for circulation than it was possible to secure through the subtreasuries, and there has already been a decided improvement throughout the United States not only Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 75 with respect to the condition of the paper currency but with respect to the supply of notes of desired denominations. A material economy to the Government has resulted not only by the reduction in operating expenses effected by abolishing the subtreasury establishments but also by the elimination of the necessity of keeping with the Assistant Treasurers working supplies of currency and coin required to enable them to perform their functions, amounting in the aggregate to approximately $25,000,000. It has not been necessary to increase the balances of Government funds with the Federal Eeserve Banks by reason of their assumption of subtreasury functions. The sinking-fund purchases under the cumulative sinking fund established by section 6 of the Victory liberty loan act approved March 3, 1919, were made by the Treasury Department in the open market, at the prevailing market prices, through the Federal Reserve Bank of New York and the Federal Eeserve Bank of San Francisco as fiscal agents of the United States. Substantially all of the purchases were made in the New York market, which is the central market for the country, and the purchases in San Francisco were relatively small. During 1921 $380,340,700 face amount of Victory 4f's and $88,548,000 face amount of Victory 3|'s were purchased. There were also purchased during 1921 by Federal Reserve Banks $50,056,350 face amount of Liberty bonds under the provisions of section 3 of the first Liberty bond act and section 3 of the second Liberty bond act, which provide that repayments by foreign Governments on account of the principal of their obligations purchased by the United States under the authority of these acts shall be applied to the purchase and retirement of Liberty bonds. In addition to the assumption of the fiscal agency functions described above, the Federal Reserve Banks have continued to act as fiscal agents of the Government during the past year in the handling of all details incident to'the sale, allotment, distribution, and redemption of Treasury certificates of indebtedness and the sale, allotment, and distribution of Treasury notes among member and non-member banks in their respective districts, including the collection of funds received from the sale of certificates and notes and the depositing of funds with depositary banks and withdrawing same as required by the Treasury. Federal Reserve Banks have also made denominational exchanges, conversions, 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 REPORT OF THE FEDERAL RESERVE BOARD. A summary of these transactions, other than sales of Treasury certificates and notes, appears in the following table: Number of \ pieces, i Amount. Treasury certificates redeemed | 722,000 $3,424,357,000 Liberty bonds and Victory notes: I Conversions I 586,000 321,368,000 Exchanges ! 17,884,000 7,000,031,000 Transfers of ownership j 99,000 101,454,000 Purchased for account of United States Treasury \ 448,000 738,840,000 Received in payment of inheritance taxes ! 21,000 25,449,000 All other transactions i 2,000 185,000 War Savings securities sold 633,000 3,817,000 United States Government coupons paid 98,407,000 766,020,000 As fiscal agents of the Treasury the Federal Reserve Banks have placed $1,201,522,000 of Treasury loan certificates of indebtedness, $1,708,459,500 of tax certificates, and $701,897,700 of Treasury notes during 1921. The following tables show the amount of allotments of Treasury certificates and notes during the calendar year 1921 by issues and Federal Reserve districts: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ALLOTMENTS OP TREASURY LOAN CERTIFICATES AND TREASURY NOTES DURING 1921. Treasury loan certificates. Treasury notes maturing in 1924. Federal Reserve Bank. • Maturing in 1921. Maturing in 1922 Total. Series E. Series F. Series G. Series H. Series A. Series B. Series C. Series A. Series B. on Boston. $591,500 $24,524,000 $11,402,000 $14,343,500 $21,208,000 $21,068,500 $2,410,000 $22,905,000 $37,423,400 $155,875,900 New York .. 61,019,000 77,043,000 49,451 500 74 067 000 99,954,000 99,622,500 13,813,000 157,225,200 146,615,100 778,810,300 Philadelphia 5 160 500 18 903 000 10 945 000 19 047 000 25 757 500 30 336 500 3,652 000 45,509,500 40,597,200 199,908,200 Cleveland. 7,559,000 16,841 000 12 221 000 16 125 000 23,300,000 19,370,000 7,984,000 21,175,200 36,500,000 161,075,200 Richmond 3 830 500 5 009 000 4 222 000 6 146 500 7 615,000 7,865,000 1,649,500 8,698,500 14,249,000 59,285,000 Atlanta . 1,540.000 3,258 500 2,398,500 2,809,000 3,572,500 6,949,500 1,290,500 2,169,900 5,934,700 29,923,100 Chicago 16,445,000 18,764,500 16,526,500 22,932,000 29,989.000 26,127,500 8,062,500 20,650,200 43,210,700 202,707,900 St. Louis . . . 4,981,500 5,760,500 6,511,500 8,512,000 10,797,500 9,233,500 2,218,500 9,740,100 16,212,500 73,967,600 Minneapolis 2,817,000 4,660,000 2,650,000 5,190,000 6,990,000 7,709,000 1,550,000 5,301,100 13,840,000 50,707,100 Kansas City 3,524,000 6,564,000 4,456,500 6,200,000 8,375,000 9,883,500 1,725,000 5,346,500 11,674,500 57,749,000 Dallas 2 197 000 1 424 000 2 552 000 2 764 500 4,071,500 5,289,500 1,541,000 4,058,600 5,449,000 29,347,100 San Francisco.. 8,995,000 9,275,000 9,550,000 12,375,000 14,540,000 16,016,500 5,900,000 8,411,800 19,000,000 104,063,300 Total 118,660,000 192,026,500 132,886,500 190,511,500 256,170,000 259,471,500 51,796,000 311,191,600 390,706,100 1,903,419,700 Rate of interest, per cent. 54 54 54 4i 5f 54 Date issued Jan. 15,1921 Jan. 15,1921 Feb. 15,1921 Apr. 15,1921 May 16,1921 Aug. 1,1921 Nov. 1,1921 June 15,1921 Sept. 15,1921 Maturity date.. Apr. 15,1921 Oct. 15,1921 July 15,1921 Oct. 15,1921 Feb. 16,1922 Aug. 1,1922 Apr. 1,1922 June 15,1924 Sept. 15,1924 CO W> O > u Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ALLOTMENTS OF TKEASURY CEETIFICATES ISSUED IN 1921 IN ANTICIPATION OF TAX PAYMENTS. 00 In anticipa- In anticipation of tax payments during 1922. tion of tax Federal Reserve Bank. payments Total. during 1921. Series T. S. 2. Series T. M. Series T. J. Series T. M. 2. Series T. M. 3. Series T. S. Series T. S. 2. Series T. J. 2. Series T. D. Boston $12,912.000 $22,066,000 $21, 070,000 $9,101 500 $8, 6"92,000 $10, 921, 500 $17,002,500 $3,100,500 $20,696,000 $125, 562, 000 P N h e i w la d Y e o lp rk hia 1 8 0 5 , , 4 7 3 2 4 1 , , 0 5 0 0 0 0 1 4 2 0 4 , , 3 1 4 8 6 7 , , 5 0 0 0 0 0 1 2 3 5 7 , , 1 3 5 3 5 3 , , 5 5 0 0 0 0 47 9 , , 2 0 6 3 3 3 ! , 5 5 0 0 0 0 48 8 , , 4 1 2 9 2 1 , , 5 5 0 0 0 0 8 1 0 2 , , 0 0 5 8 7 1 , , 5 5 0 0 0 0 6 1 6 7 , , 4 4 9 7 5 6 , , 0 5 0 0 0 0 1 3 8 , ,4 7 7 0 1 7 , , 5 0 0 0 0 0 9 2 4 5 , ,8 0 8 9 8 8 , , 5 5 0 0 0 0 7 1 0 5 1 2 , , 8 4 7 9 3 2 , , 0 0 0 0 0 0 O C R l i e c v h e m la o n n d d 23 6 , , 2 6 9 3 1 4 , , 0 C 0 O 0 O 2 1 8 0 , , 1 3 4 4 9 1 , , 0 5 0 0 0 0 3 8 9, , 2 5 2 2 5 6 , , 0 0 0 0 0 0 1 3 1 , ,2 7 9 4 5 6 , , 0 0 0 0 0 0 1 2 0 , , 5 10 5 0 0 , , 0 5 0 0 0 0 1 4 3 , ,3 6 2 6 0 5 , , 0 0 0 0 0 0 1 6 4, , 2 6 8 1 3 9 , , 0 0 0 0 0 0 1 2 0 , , 7 3 9 0 9 0 , , 5 0 0 0 0 0 2 6 0 , , 7 9 0 96 0 , , 0 50 0 0 0 1 5 7 2 1 , , 3 19 4 8 3 , , 0 0 0 0 0 0 H Atlanta 2, 647, 500 2,386, 500 3 850,000 1, 812, 500 2,793,500 1,617,500 5, 547, 500 1,826, 500 6,853, 500 29,335,000 O Chicago 21, 879,500 20, 536,500 33,774.500 17,636,000 15,856^ 000 26,778, 500 21.288,000 9, 877,500 27,318,500 194,945,000 St. Louis 4, 705,000 8, 574,000 12, 701, 500 3, 695, 000 3,035,500 6,145, 500 6, 638,500 2,411,500 8,611,500 56,518,000 M Ka in n n s e a a s p o C lis ity 3 4 , , 1 8 6 5 6 0 , , 0 5 0 0 0 0 4 9 , , 1 0 4 6 9 8 , , 5 0 50 0 0 5 9, , 4 4 7 6 7 2 , , 5 5 0 0 0 0 2 2 . , 6 5 8 1 9 6 , , 0 5 0 0 0 0 3 5 , , 4 6 2 3 0 2 , , 0 0 0 0 00 6 3 , , 7 5 0 0 5 0 , , 0 0 0 0 0 0 6 5 , , 4 7 7 3 5 0 , , 0 0 0 0 0 0 2 1 , , 4 0 5 6 0 9 , , 0 0 0 0 0 0 7 8 , , 4 4 4 9 2 3 , , 5 5 0 0 0 0 3 5 6 5, , 3 9 6 2 8 8 , , 5 5 0 0 0 0 W H Dallas 2, 546,000 2,396,000 4,708,000 2,489, 000 5, 278, 500 3,979,000 3, 586, 500 2, 605, 000 4,175,000 31,763, 000 San Francisco 14, 515; 000 16,300, 000 12, 900, 000 5,613,500 10,600,000 13,1C0,000 8, 550, 000 6, 285,000 12,270,000 100,133,500 Total 193, 302,000 288,501,000 314,181,000 116,891,000 124,572,000 182,871,000 179,691, 500 64, 903,000 243,544, 000 1, 708,459, 500 Rate of interest, per cent 5* 5£ 5* 5| Date issued Mar. 15,1921 Mar. 15,1921 June 15,1921 Aug. 1,1921 Sept. 15,1921 Sept. 15,1921 Nov. 1,1921 Dec. 15,1921 Dec. 15,1921 Maturity date Sept. 15,1921 Mar. 15,1922 June 15,1922 Mar. 15,1922 Mar. 15,1922 Sept. 15,1922 Sept. 15,1922 June 15,1922 Dec. 15,1922 W O 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 79 The Federal Eeserve Banks, as fiscal agents and depositaries of the Treasury, received during 1921 deposits of the greater part of the $4,970,000,000 paid to the Government on account of income and excess-profits taxes and other ordinary receipts. 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 FEDEEAL RESERVE BANKS DURING 1921. [In thousands of dollars.] Daily Month. Maximum. Minimum. average. January... 57,212 5,617 25,301 February.. 68,206 11,000 50,337 March 123,212 37,835 81,151 April 84,201 18,857 50,627 May 60,516 13,799 28,487 June 64,401 14,597 28,579 July 51,893 9,093 29,764 August 69,746 19,014 43,879 September. 98,540 22,189 59,339 October... 96,673 10,739 50,234 November. 63,949 29,179 42,242 December- 95,951 20,213 54,364 Year 123,212 5,617 45,320 On December 31 there was a total of 9,281 special bank depositaries for Government funds, which had been designated by the Secretary of the Treasury, through the Federal Eeserve Banks. The average daily Government balances with these depositaries during 1921 was $261,364,000, 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 $549,693,000. BRANCHES OF FEDERAL RESERVE BANKS AND THEIR OPERATIONS. The branches of Federal Reserve Banks have been established under the provisions of section 3 of the Federal Reserve Act. The branches are in no sense independent banks, but are, as is implied in the official title of section 3, " branch offices." Subject to such rules and regulations as the Federal Reserve Board may prescribe, they are operated under the supervision of a board of directors consisting of not more than seven nor less than three directors, of whom a majority of one is appointed by the Federal Reserve Bank of the district and the remaining directors by the Federal Reserve Board. The law provides that directors of branch banks shall hold office during the pleasure of the Federal Reserve Board and the Board has from the outset adopted the policy of limiting the terms for which they are designated to a period of one year. On December 31, 1921, there were 23 branches of Federal Reserve Banks in operation, the Helena (Mont.) branch of the Federal Re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

80 REPORT OF THE FEDERAL RESERVE BOARD. serve B&nk of Minneapolis, authorized in 1919, having been opened for business on February 1, 1921, following the completion of its vault which was constructed in a building purchased in November, 1919, and remodeled for use as banking quarters. The territory assigned to the new branch embraces the entire State of Montana, in which there were located on June 30, 1921, a total of 202 member banks (national and State), having a capital of $12,905,000, a surplus of $5,668,000, and total resources of $131,275,000. The powers and functions which the Helena branch is authorized to exercise place it in the first group of branches described on page 92 of the 1920 Annual Report of the Federal Reserve Board; that is, the branch renders practically the.same services for, and has the same direct relations with, member banks in the territory assigned to it as does the parent bank for member banks in other parts of the district. No new branches were authorized by the Board during the past year. Of the present branches, one—New Orleans—was established in 1915, five in 1917, ten in 1918, four in 1919, two in 1920, and one in 1921. The following table shows the volume of business handled by each branch and by the Savannah agency during the year 1921 : OPERATIONS OF FEDERAL RESERVE BRANCH BANKS DURING 1921. [Numbers in thousands. Amounts in thousands of dollars.] Federal Reserve branch. Nu I m te b m er s . h a A n m dl o ed u . n 1 t. R C e u ce rr i e v n e p c d a y . p e ( P c r) o a . i i n d a o n u d t. V p c b a o o p o l a u u e u n r n m g d t h e e d t d i . o s- f d h A a o v i l l d e y i r n a b g g i e s l . l b D M r b a e 1 e a l s e 9 e a n e m 2 . n r k 1 v 3 b c . s e 1 e e ' , s r Buffalo 9,300 2,131,145 146,993 139,951 2 1,043,883 2 29,258 216,577 Cincinnati 12,415 2,564,398 124,406 76,471 Pittsburgh 16, 270 4,684,330 284,953 236, 864 Baltimore 12, 837 3,177,174 147,382 131,389 620,154 ' 16,'528 Birmingham 4,548 860,941 35,520 22,564 Jacksonville 2,753 525,966 50,620 38,375 Nashville 3,564 647,670 35,693 23,426 New Orleans... 3,013 910,446 100, 520 85,224 531, 847 33,567 13,716 Detroit % 375, 023 264,356 249, 818 1,176,298 50,002 33,106 Little Rock 4,241 526,981 30,008 27, 554 141,099 10,705 4,223 Louisville 6,174 979,771 80,625 61,451 362,425 11,899 8,053 Memphis 2,871 473,801 47, 732 47, 844 215,492 18,166 6,043 Helena 2,365 271,050 12,263 9,642 57,954 10,039 5,546 Denver 6,733 1,154,607 43,616 21,484 147,911 9,540 13, 543 Oklahoma City. 12,264 1,763,284 17,130 12, 393 Omaha 8,639 1,179, 435 27,416 22,563 204,093 21,434 13,765 El Paso 2,375 315, 595 34,625 16,001 97,867 11,144 3,080 Houston 5,359 944,229 42,954 28,430 129,433 9,350 10,508 Los Angeles 16,501 2, 559,717 151,229 140,012 145, 382 13,552 32,328 P S S S a p o e l a o r t t t k l t L a l a e n a n e k d e City.. 3 4 2 5, , , , 7 5 9 5 9 3 7 9 7 7 5 3 6 9 7 4 6 4 8 0 1 5 6 2 , , , , 0 1 5 7 9 6 6 4 3 8 9 3 6 3 1 1 6 4 4 1 , , , , 6 3 1 8 3 5 5 0 9 6 3 3 2 5 1 6 9 9 1 , , , , 9 4 4 6 0 9 3 4 3 4 3 4 1 1 4 1 2 4 8 1 2 3 6 5 , , , , 7 3 7 4 8 4 6 2 9 7 8 8 3 3 9 9 6 , , , , 5 6 0 0 3 3 4 6 9 7 0 1 1 1 6 8 1 0 , , , , 0 5 6 1 5 3 3 5 2 1 6 9 Total: 1921 157,692 30, 841,136 1,804,992 1,498,930 5,742,170 286,933 213,394 1920 125,435 37,560,687 1,616,708 1,696,087 6,836,678 290,630 218, 536 Savannah agency: 1921 8,601 6,517 1920 11,663 1 From Dec. 16,1920, to Dec. 15,1921, except that in the case of Helena the period dates from opening of branch on Feb. 1. 2 Buffalo city banks only. Bill holdings are based on figures as of the 52 weekly statement dates during the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL, RESERVE BOARD. 81 THE FOREIGN EXCHANGES. Foreign exchange rates in 1921 showed a general trend upward, although the wide fluctuations which have characterized the postwar period continued to be a feature of the exchange market. During the war exchange rates were stabilized artificially by the various governments and the pound sterling was held around 4.764375. In the spring of 1919 the " pegging " of exchanges was discontinued and the values of European exchanges and currencies in New York began to decline persistently and rapidly, wTith occasional sharp temporary recoveries. The decline which has taken place represents an adjustment of the exchange values which were artificially sustained during the war to the changed commercial and monetary conditions of the post-war period. During the year 1921 this downward adjustment of sterling, francs, and lire appears to have come, for the time being, at least, to an end, but the value of the Austrian krone declined almost to the vanishing point, and the precipitate decline since May of the German mark has been one of the spectacular features of the year. Exchange rates were affected by the reparations payments and by the discussion of financial settlements with Germany. The average rates for January and December, together with the lowest and highest monthly average rates during the year for leading foreign currencies are shown in the following statement: Rates in 1921 (cents per unit of foreign currency). Lowest monthly aver- Highest monthly aver- A verage age for the year. age for the year. Average for Jan- for Deuary. cember. Month. Rate. Month. Rate. Pound sterling 486.65 374.1970 July 363.2130 December.. 415.6108 415.6108 French franc 19.30 6.4330 January 6.4330 Mav 8.3688 7. 8446 Italian lira 19.30 3.5520 do 3.5520 ..! 5. 2960 4. 4365 German mark 23.82 1. 6000 November.. .3924 February.. 1.6400 . 5258 Swedish krona 26.80 21.4000 July 21.0400 December.. 24.5281 24.5281 Dutch (iorin 40.20 32.8800 August 31.0000 .do.. 36. 3104 36. 3104 Argentine gold peso 96.48 79. 3820 July 65. 7990 Februarv.. 80. 3900 74. 8042 Brazilian milreis 32.44 15.1390 do 10. 4490 do..:... 15.5970 12. 6692 Chilean paper peso 19.53 14. 3200 August 10.2400 March 14. 7600 10. 7837 Japanese yen 49. 85 48. 7000 October 47.6552 i January 48. 7000 47. 9219 Indian rupee 48. 65 28. 6100 July 23.0588 i do 28. 6100 27.4488 Shanghai tael 66.85 76. 9000 March 64.2250 October 78. 4016 75.3162 Sterling, francs, and lire pursued substantially parallel courses during the 12 months' period. Moderate advances in the early part of the year were followed by a sharp rise in May, when the amount of the German reparations was fixed and prospects for an adjustment of international financial relations appeared brighter. This rally, however, was followed by a rapid decline when the first German payment of $50,000,000 was made. Inasmuch as this pay- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 REPORT OF THE FEDERAL RESERVE BOARD. ment was required to be made in dollar exchange, the demand for dollars, already keen, became still more intensified and other currencies depreciated correspondingly. This resulted in a modification of the reparations arrangement, and Germany was permitted to pay future installments in other currencies. The decline in exchange rates which began in May continued until October, although sterling began to react as early as July, owing to the settlement of the British coal strike and the continuous exports of gold to the United States. An upward turn in the exchanges of other allied countries, partly in response to improved trade conditions, took place in November. During the closing weeks of the year the progress of the Conference on Limitation of Armament and the prospect of a satisfactory conclusion of Irish negotiations in England were reflected in a pronounced upward movement in sterling and of the exchanges of western European countries. German exchange reached its peak of 1.64 cents in February and remained at about that level until May, but the payment of the first installment of the indemnity, followed by the progressive demoralization of the fiscal situation in Germany, the continued issue of large amounts of Treasury bills and Reichsbank notes and the persistent efforts of German citizens to convert marks into other currencies, resulted in the decline of the mark to the lowest point ever reached. From 1.6 cents in May, the mark declined to 0.39 cent in November, but rallied to 0.53 cent in December. The Austrian krone and the Polish mark, owing to the uninterrupted issue of enormous volumes of notes, declined so rapidly that at the close of 1921 these currencies were valued at a small fraction of 1 per cent of their parity and were practically negligible as media of international payments. The Czechoslovakian krone, on the other hand, as the result of a strong fiscal policy and control of exports and imports, was held during the year at the comparatively high level of 5 to 6 per cent of its parity, and the Yugoslavian dinar, notwithstanding a considerable decline, was still worth at the end of the year about 7 per cent of its par value. Exchanges of South American countries during the early part of the year continued to decline owing to unfavorable trade balances and to the fall in the price of their staple products. During the summer, however, some of these countries obtained credits in the United States and in the latter part of the year their exchanges showed decided improvement. In Brazil, the efforts of the Government to maintain the price of coffee and to control exchange transactions were also a factor in the advance in milreis. In Argentina reports indicate a favorable turn in general economic and trade conditions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

83 REPORT OF THE FEDERAL RESERVE BOARD. Japanese exchange remained steady throughout the year in its position slightly below par. The Indian rupee declined during the first part of the year, but advanced after June when the effects of favorable climatic conditions and consequent improvement in trade conditions began to be felt. Gold exports to Japan and the United States also tended to strengthen rupee exchange. During recent weeks, however, a downward movement of rupee exchange has resulted from the fall of the mark and the consequent decline in German purchases of hemp, jute, and other Indian raw materials. Silver moved within comparatively narrow limits, the lowest monthly average quotation being about 57 cents in March and the highest about 71 cents in October. In accordance with the provisions of the emergency tariff act of May 27, 1921, the Federal Reserve Bank of New York, beginning with June 17, has made a daily statement to the Treasury of the average noon buying rates for various foreign currencies in the New York market. On the basis of these statements the Federal Reserve Board compiles monthly high, low, and average quotations of all the important currencies and publishes them in the Federal Reserve Bulletin. A table is published in the appendix showing these quotations for each month from July to December. In addition to the high, low, and average quotations, percentages of par are shown. A chart illustrating the fluctuations of the leading exchanges since the armistice appears on the next page. In view of the great importance which the movement of foreign exchange rates has assumed in international trade and financial relations, the Board has undertaken to compile monthly on the basis of quotations from 18 principal countries a general index of foreign exchange. This index has been calculated for each month, beginning with November, 1918, the quotations prior to July, 1921, being obtained from private sources and those from July to December, 1921, from the statements of the Federal Reserve Bank of New York. This general exchange index is given in the statement below and is represented by the heavy solid line on the chart. FOREIGN EXCHANGE INDEX. 1918 1919 1920 1921 Per cent. Per cent. Per cent. Per cent. January 101 78 54 February 100 70 55 March 99 72 54 April 96 73 57 May 93 72 65 June 97 74 59 July . 92 74 53 August 92 66 52 September 88 67 51 October 88 61 46 November 101 84 58 51 December 101 77 55 55 Year 89 68 54 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 REPORT OF THE FEDERAL RESERVE BOARD. In compiling this index the average quotations for each of the 18 countries included, expressed as percentages of par, are weighted by the volume of merchandise and gold and silver transactions between the respective countries and the United States during the preceding month, the index being what is known as a "weighted geometric average." Stated in another way, without the use of technical terms, the index shows how many dollars would be required each month to purchase in the New York market a representative assortment of foreign exchange bills which at par would have cost $100. The index was slightly over 100 during the first three months succeeding the armistice, when the " pegging " arrangements still prevailed, and oriental and South American exchanges were high owing to unpaid balances accumulated during the gold embargo. Beginning with March, 1919, the exchange index declined almost uninterruptedly until January, 1921, when it stood at 54 per cent. During 1921 the index rose to 65 per cent for May, declined to 46 per cent for October, but rose again to 55 per cent for December. For the year 1921 the foreign exchange index works out at 54, compared with 68 for 1920 and 89 for 1919. FOREHSN EXCHANGE INDE,K 1918 - 1921 GENERAL INDEX FRANCE - ITALY ENGLAND GERMANY - NETHE.RLANDS - JAPAN PERCENT 1 ; I i i PER CENT ! HO i 4 T 11O PAR- - PAR •- *M 4- N I - r 9O \ 9O \ N 8O \ "21 8O \ ->- ... v TO \ \& | i T 7O 6O j ! 6O I \ 5O I 5O ILL AO 4-O ... 3O y f | ^ y 3O 2O 2O .4.. ! 1O • #H . 1O I L ( MONTH N. D. J. F. M. A M. J. J. A. S. 0. N. 0J. F. M. A M. J. J. A. S. 0 N DJ. F. M. A. M. J. J. A S. 0. N. D. MONTH YEAR 1316 1919 1920 1921 YEAR FOREIGN BRANCHES OF NATIONAL BANKS. The Federal Eeserve Board during the year 1921 authorized the establishment of a foreign branch in Paris, France, by the National City Bank of New York. This branch, already an operating institution, was purchased from the Farmers Loan & Trust Co. of New York, December 31, and given the title of Paris Branch of the National City Bank of New York on the same date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL- RESERVE BOARD. 85 During the year the National City Bank closed its branches at Barranquilla, Bogota, and Medellin in the Eepublic of Colombia, the branch at Cape Town, Union of South Africa, and the branch at Port of Spain, Trinidad. The First National Bank of Boston operates to date but one foreign branch, located at Buenos Aires, Argentine Eepublic, which was authorized by the Board in July, 1917. FOREIGN BANKING CORPORATIONS. In the Board's 'annual report for the year 1920 there was given a list of foreign banking corporations organized under State law and doing business under agreement with the Federal Eeserve Board as provided in section 25 of the Federal Eeserve Act. During the past . year there has been no increase in the number of these corporations nor has the scope of the operations of those listed in the 1920 report been enlarged; on the contrary, some of them have curtailed their business because of certain unfavorable conditions with which they have been confronted. The two corporations which were reported last year as having been organized under the provisions of section 25 (a) of the Federal Eeserve Act, commonly known as the Edge Act, during the year 1921, did only a moderate volume of business and are extending their operations slowly and cautiously. No new corporations have been organized during the year under the provisions of section 25 (a). TRUST POWERS OF NATIONAL BANKS. During the past year, through its counsel's office, the Board has continued to advise and cooperate with the national banks in connection with the operation of their trust departments, which may be established with the Board's consent under authority of the provisions of section 11 (k) of the Federal Eeserve Act. In order fully to inform itself regarding this general subject the Board addressed to all national banks which have been granted trust powers a questionnaire designed to elicit information as to the degree of success which they are attaining in the operation of their trust departments and as to the nature of the practical and legal difficulties, if any, which they are encountering. On October 15, 1921, which is about the date this questionnaire was sent out, 1,387 national banks held permits to-exercise fiduciary powers under the terms of section 11 (k) of the Federal Eeserve Act. The banks responded readily and seemed to appreciate the Board's efforts to cooperate with and assist them in this matter. The Board believes that the results of the questionnaire will prove very valuable to all who are interested in the subject. The answers to the questionnaire show that the opposition on the part of the State authorities which at first existed in many of the 85227—22 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 REPORT OF THE FEDERAL RESERVE BOARD. States has very largely disappeared, and that in all but three or four of the States national banks are permitted to exercise fiduciary powers on a basis of substantial equality with State trust companies. A large number of banks are operating trust departments very successfully, many of them stating that they are meeting with much greater success than they had anticipated. Seven hundred and ninety-four national banks replying to the questionnaire had acted in various fiduciary capacities 8,341 times in the aggregate, and it is estimated that they held trust funds aggregating*over $825,000,000. The national banks which are operating trust departments are almost unanimous in the opinion that their trust departments bring new business into the banks, and enable them to retain balances which upon the death of their customers would otherwise be diverted to competing trust companies. It appears also that many national banks which are located in small communities where there are no trust companies are furnishing, through their trust departments, a service which their communities greatly need, although they are somewhat handicapped by the fact that their customers are not as yet fully acquainted with the advantages of corporate fiduciaries. A complete and detailed summary of the replies to the Board's questionnaire is published among the exhibits in the appendix. During the past year the Board, after examination and report by the counsel's office, has approved 134 original arid 14 supplementary applications by national banks for fiduciary powers. BOARD'S ORGANIZATION AND EXPENDITURES. There have been several changes in the Board's organization and staff during the past year. On March 4, Hon. Andrew W. Mellon succeeded Hon. David F. Houston as Secretary of the Treasury and ex officio member and chairman of the Federal Reserve Board. On March 17, Hon. D. R. Crissinger took the oath of office as Comptroller of the Currency and ex officio member of the Federal Reserve Board, his predecessor having retired from office on March 2, 1921. The term of David C. Wills as a member of the Board expired on March 4, and on May 12 John R. Mitchell, of St. Paul, Minn., took the oath of office as a member of the Board, having been appointed by the President for a full term of 10 years. The total cost of conducting the work of the Board during the year 1921, including salaries of members and the cost of printing and circulating the Federal Reserve Bulletin, was $722,318.86. Two assessments were levied against the Federal Reserve Banks during the year, aggregating $741,436.29, or approximately 239 thousandths of 1 per cent of their average paid-in capital and surplus for the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 87 A statement of salaries paid and of other expenditures by the Board is given in the appendix. FEDERAL ADVISORY COUNCIL. The Federal Advisory Council held its four statutory meetings in Washington during 1921 on the following dates: February 21, May 16, September 19, and November 21. No other meetings of the council were held during the year. Recommendations made by the council appear in the appendix. CONFERENCES HELD BY THE BOARD. The Federal Reserve Board conferred with the Federal Advisory Council on the occasion of each of its meetings in Washington. On April 12 the Board held a conference with the governors of the Federal Reserve Banks, and on April 14 one class B director from each Federal Reserve Bank joined with the Board and the governors of the banks for the purpose of discussing the credit situation as it then existed. On October 25 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. A meeting with the Board of representatives of all Federal Reserve Banks was held in Washington on January 13, 1921, to discuss the Federal Reserve interdistrict time schedule. On February 21 and 22 a conference of statisticians, which included representatives of the Board and the Federal Reserve Banks, as well as a number of business statisticians, was held in Washington for the purpose of discussing business condition reports. On July 20 the Board held a conference with the Governors of the Federal Reserve Banks of Richmond, Atlanta, St. Louis, Kansas City, and Dallas, at Avhich the credit situation in the cotton States wras discussed. KERN AMENDMENT TO THE CLAYTON ACT. As originally enacted section 8 of the act approved October 15, 1914, known as the Clayton Antitrust Act, absolutely prohibited interlocking directorates between certain classes of banks. The act of May 15,1916, known as the Kern amendment, modified the provisions of that section so as to allow a person who first obtains the permission of the Federal Reserve Board to serve not more than three banks in the prohibited classes, if such banks are not in substantial competition. Under the terms of this amendment the Board is authorized at its discretion to grant, withhold, or revoke such consent if the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 REPORT OF THE FEDERAL RESERVE BOARD. banks involved are not in substantial competition, but the Board has no authority to grant such consent if the banks involved are in substantial competition. Inasmuch as several years had elapsed since the enactment of the Kern amendment, the Board in the fall of 1920 undertook to review the entire situation with reference to interlocking directorates, in order to determine whether, in view of changed conditions, it ought to exercise its discretionary power to revoke some of the permits which it had granted previously. In view of the complicated nature of the provisions of the Clayton Act relating to interlocking bank directorates it is the practice of the Board to refer all matters relating thereto to its counsel's office, and that office collected and arranged the data for this review and has made a thorough study of the legal and practical problems involved. During the course of the Board's review of the situation, urgent representations were made on behalf of some of the banks involved that to revoke outstanding permits and break up long-standing relations would work hardship and injustice upon many banks and bank directors. It was argued that the intent of Congress in enacting the Clayton Act was to encourage competition between banks, and that where competition had sprung up between two banks while their directorates had been interlocked that intent was not being defeated by the existence of the interlocking directorate. There is no doubt of the soundness of this argument, and it emphasizes the fact, which had for some time been impressed upon the Federal Reserve Board, that section 8 of the Clayton Act as amended by the Kern amendment penalizes directors who have acted in accordance with the intent of Congress and have encouraged the growth of competition between the banks which they serve. When the work done in connection with the review of the interlocking directorates revealed to the Board how many instances there were in which a strict enforcement of the terms of section 8 of the Clayton Act would operate inequitably, the Board decided to consider the question of a further amendment to the Clayton Act to carry out more effectually the intention of Congress to promote and encourage competition. The matter was referred to the Board's committee on the Clayton Act, which, after making a careful study of the problem, with the assistance of counsel, rendered a report in which it recommended an amendment which would authorize the Federal Reserve Board to permit a person to serve not more than three competing banks, when the Board is satisfied that such interlocking directorates will not result in a restriction of credit or lessening of competition between the banks involved, the Board, however, to continue to have full power to revoke such permits at any time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 89 The committee further recommended that existing permits previously granted by the Board be not disturbed until the probability of the enactment of such an amendment could be ascertained, and that the Board postpone final action on its review of the existing situation which had been scheduled for April 1. The Board adopted the recommendations of its committee on the Clayton Act and a bill amending the Clayton Act in this manner was drafted and submitted to the Senate and House Committees on Banking and Currency. The bill was introduced in the House of Representatives on April 21, 1921, and was referred to the Committee on Banking and Currency, but no further action has been taken regarding it. The Board desires to take this opportunity to renew its recommendation that the proposed amendment to the Clayton Act be enacted. A draft of the proposed amendment and the report of the Board's committee on the Clayton Act which explains more fully the problems involved are published as exhibits in the appendix to this report. During the year 1921 the Board has acted upon 297 applications for its permission to serve two or more banks under the Kern amendment, counsel's office having investigated and made its report to the Board upon each of these applications. The Board has also, . through counsel's office, investigated and acted upon approximately 500 apparent violations of the Clayton Act, reported by national bank examiners. AMENDMENTS TO THE FEDERAL RESERVE ACT. The Federal Reserve Act has been amended three times during the year 1921—by two different acts approved February 27, 1921, and by an act approved June 14, 1921. Each of these amendments, which will be discussed in order, was recommended by the Federal Reserve Board. By one of the acts approved February 27, 1921, the provisions of section 11 (m), which had expired by limitation on December 31, 1920, was reenacted with a slight modification and made effective until October 31, 1921. That section, as amended by the act of March 3, 1919, had authorized the Federal Reserve Board to permit Federal Reserve Banks to discount for any member bank the paper of a single borrower up to 20 per cent of the member bank's capital and surplus, provided that such paper in excess of 10 per cent of the member bank's capital and surplus was secured by Liberty bonds, Victory notes, or United States certificates of indebtedness. As amended by the act of February 27, 1921, the scope of the section wTas narrowed by limiting its application to paper secured by Liberty bonds and Victory notes only when the borrower was the original subscriber thereto. The section as amended still applied, however, to paper secured by United States certificates of indebtedness, however acquired. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

90 REPORT OF THE FEDERAL RESERVE BOARD. The other act, approved February 27, 1921, amended section 25(a) by adding a proviso to the first paragraph thereof to the effect that nothing in that section should be construed to deny the right of the Secretary of the Treasury to use any corporation organized thereunder as a depositary in Panama, the Panama Canal Zone, the Philippine Islands, and in other insular possessions and dependencies of the United States. The necessity for this amendment arose from the fact that the Treasury officials were doubtful whether the authority to require corporations organized under section 25(a) to act as fiscal agents included the right to use them as depositaries. Section 25(a) was amended again by the act of June 14, 1921. As originally enacted, that section required corporations organized under it to have a capital of not less than $2,000,000, one-fourth of which had to be paid in before the corporation was authorized to commence business and the remainder of which had to be paid in in installments of 10 per cent at the rate of one installment every two months. This requirement was modified by the act approved June 14, 1921, so that a corporation with an authorized capital in excess of $2,000,000 may apply for the consent of the Federal Reserve Board to have such excess paid in on call of the board of directors, provided that in all events 25 per cent of the total authorized capital must be paid in before the corporation commences business. FUNDAMENTAL PRINCIPLES OF THE FEDERAL RESERVE ACT. More than seven years have elapsed since the establishment of the Federal Reserve Banks, but there is still a surprising lack of knowledge of what they really are and of what their proper functions are, not only on the part of the public at large, but among business men and bankers as well. During the past year many things have been said and written regarding the Federal Reserve System which are calculated to create entirely false impressions, and in order that a clearer idea may be presented of the principles which govern the policies of the Federal Reserve Board and the operations of the Federal Reserve Banks, it seems desirable to review briefly some of the essential features of the Federal Reserve Act, to discuss the measure of authority conferred upon the Federal Reserve Board, the joint and separate powers exercised by the Federal Reserve Board and the Federal Reserve Banks, and to describe concisely the fundamental character and some of the distinctive functions of the Federal Reserve Banks. NO CENTRAL BANK. Attention should be called, first of all, to the fact that the Federal Reserve Act did not establish a central bank. On the contrary, it Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 91 adopted the regional principle and authorized the establishment of not more than 12 banks, to be located in various sections of the country. Each of these banks is practically independent of the others, in operation as well as in local policies. From a legal standpoint, these banks are private corporations organized under a special act of Congress, namely, the Federal Reserve Act. Their stockholders are their member banks, each of which is required to subscribe to the capital stock of the Federal Reserve Bank an amount equal to 6 per cent of its own capital and surplus, one-half of which amount is required to be paid in. DISPOSITION OF EARNINGS. After all necessary expenses of a Federal Reserve Bank have been paid or provided for, the stockholders are entitled to receive an annual dividend of 6 per cent on the paid-in capital stock, which is cumulative. After the dividend claims have been fully met, the net earnings are paid to the United States as a franchise tax, except that the entire earnings are paid into a surplus fund until that fund amounts to 100 per cent of the subscribed capital stock of the Federal Reserve Bank. Thereafter 10 per cent of the net earnings are paid into the surplus fund and the remaining 90 per cent paid to the Government as franchise tax. ORGANIZATION. Each bank has nine directors, of which six are elected by the member banks and three are appointed by the Federal Reserve Board. Not more than three directors can be officers or directors of member banks and the three directors appointed by the Federal Reserve Board can not be officers, directors, or stockholders in any bank. Three directors elected by the member banks must be men who are actively engaged in their respective districts in agriculture, commerce, or some other industrial pursuit. As there are 12 Federal Reserve Banks, there are, therefore, 108 Federal Reserve Bank directors, of which only 36 are appointed by the Federal Reserve Board, while the remaining 72 directors are elected by the member banks of the country—nearly 10,000 in number. LENDING POWERS. The law does not contemplate direct competition by the Federal Reserve Banks for business with each other or with national banks, State banks, trust companies, and savings banks. Federal Reserve Banks are not allowed to receive deposits from the public and can accept deposits only from their member banks, from the United States Government, and, solely for the purposes of exchange or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

92 REPORT OF THE FEDERAL RESERVE BOARD. collection, from nonmember banks or trust companies. They are not allowed to make loans or advances direct to the public, but can lend only to the United States, to their member banks, and, subject to certain conditions, for periods not exceeding six months, in anticipation of the collection of taxes or the receipt of assured revenues, to States, counties, municipalities, and other political subdivisions in the United States. The Federal Reserve Banks are not permitted by law to make loans direct to individuals, firms, and corporations, and while they can, under certain restrictions, purchase bills of exchange and bankers' acceptances in the open market, their dealings with the public in the matter of loans are limited to the discounting of notes, drafts, and bills of exchange for member banks, all such paper to be indorsed by the member bank offering it. In lending in this way to their member banks, the Federal Reserve Banks are not authorized by law to use the same discretion and freedom of action that are allowed national banks, State banks, and trust companies, but they must observe the limitations prescribed by law as to the character and maturity of the notes offered them by member banks for discount; except as to notes, drafts, and bills drawn or issued for agricultural purposes or based on live stock, which a Federal Reserve Bank may discount for a member bank if the maturity does not exceed six months, a Federal. Reserve Bank can not discount any paper for a member bank which has longer than 90 days to run, exclusive of days of grace. The law puts a limitation also upon the character of advances against member banks' notes. A Federal Reserve Bank may make advances to its member banks on their promissory notes for a period not exceeding 15 days, provided such promissory notes are secured by the deposit or pledge of bonds or notes of the United States, or by notes, drafts, and bills of exchange or bankers' acceptances which are themselves eligible for rediscount or purchase by a Federal Reserve Bank. To be technically eligible for rediscount a note must be indorsed by a member bank, its maturity must be within the time limit prescribed by law, and it must have been issued or drawn for agricultural, industrial, or commercial purposes, and it must also be shown that the proceeds of the note have been used or are to be used for such purposes. As Federal Reserve Banks are not permitted by law to rediscount any paper which does not bear the indorsement of a member bank, it is clear that in order for a Federal Reserve Bank to render financial assistance to those engaged in commerce and industry, in agriculture, or in the raising of live stock, the loans must first be negotiated with member banks. There are many loans, however, which member banks may legally and properly make which can not be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 93 rediscounted with Federal Reserve Banks for the reason that the law does not admit of the classification of such paper as eligible. A Federal Reserve Bank, therefore, can not discount any paper, however good it may be, which is not technically eligible under the terms of the Federal Reserve Act; and, on the other hand, it is entirely within its right in declining to discount notes which, even though technically eligible, are not satisfactory from a credit standpoint. Federal Reserve Banks are forbidden by law from discounting notes, drafts, or bills covering merely investments, or issued or drawn for the purpose of carrying or trading in stocks, bonds, or other investment securities, except bonds and notes of the Government of the United States. RESERVES. The Federal Reserve Act, as amended, has changed both the amount and character of the reserves which all national banks and State member banks must carry against their deposit liabilities. For a long period of years it has been the practice of American banks to carry as a reserve in cash and on deposit with other banks a certain proportion of their deposits. Before the passage of the Federal Reserve Act the national banks in the three central reserve cities were required to keep in their own vaults as reserve in gold or lawful money an amount equal to 25 per cent of their net deposits, and in other cities and towns they were required to keep a part of their required reserves in cash in their own vaults, while a part might be kept on deposit with other banks. The laws regarding the reserves of State banks varied in the different 'States. Under the Federal Reserve Act the percentage of reserve required has been substantially reduced, and, as amended, no national bank and no State member bank is required to keep any definite amount of cash in its own vaults, and whatever amount of cash is kept on hand by the member banks, as deemed necessary by the judgment and experience of their officers, does not count as part of the banks' lawful reserve. The entire legal reserves of all member banks must be kept on deposit with the Federal Reserve Banks. As a consequence, the cash resources of the Federal Reserve Banks are necessarily very large and their holdings of gold, in particular, constitute a very large proportion of all the gold in the country. The gold held'by the Federal Reserve Banks is equal to all the gold that would have been in circulation or held by all the banks throughout the country if there had been no Federal Reserve Banks established. As the Federal Reserve Banks are made the sole custodians of the legal reserves of all member banks, the object of Congress in throwing safeguards and limitations around their loan transactions is evident. It is necessary that Federal Reserve Banks should keep Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

94 REPORT OF THE FEDERAL RESERVE BOARD. themselves in a " liquid " position; that is, their bills discounted must be of short maturity and should be readily collectible. The strength of the entire banking system of the United States is directly related to the strength of the Federal Keserve Banks. If the Federal Eeserve Banks should allow themselves to get into a weak, overextended, and unsafe position, all member and nonmember banks would be seriously affected. GENERAL POWERS AND LIMITATIONS. While Congress has placed upon the Federal Eeserve Board the responsibility of defining eligible paper, within the meaning of the Federal Eeserve Act, it has intrusted the management of the Federal Eeserve Banks, under the general supervision of the Federal Eeserve Board, to their own directors. Each Federal Eeserve Bank has power to appoint, by its board of directors, such officers and employees as are not otherwise provided for in the Federal Eeserve Act and to define their duties, to prescribe by-laws, not inconsistent with the law, regulating the manner in which its general business may be conducted, and to exercise, by its board of directors, or duly authorized officers or agents, all powers specifically granted by law and such incidental powers as may be necessary to carry on the business of banking within the limitations prescribed by law. Each Federal Eeserve Bank is conducted under the supervision and control of its board of directors, who are charged by law to perform the duties usually appertaining to the office of directors of banking associations and to administer the affairs of the bank fairly and impartially and without discrimination in favor of or against any member bank or banks and, subject to the provisions of law and the orders of the Federal Eeserve Board, to extend to each member bank such discounts, advancements, and accommodations as may be safely and reasonably made with due regard for the claims and demands of other member banks. The Federal Eeserve Board is not authorized by law to pass upon the paper which is offered for discount to Federal Eeserve Banks. This is a function which must be exercised by the directors of the Federal Eeserve Bank or by their duly authorized officers or agerts. While the law does not prescribe any fixed limit as to the amount, of loans that a Federal Eeserve Bank may make to a member bank, it does require that due regard must be given to the claims and demands of other member banks; that is, to their possible needs for credit accommodation. It also provides that a Federal Eeserve Bank must extend to each member bank such discounts and accommodations as may be "safely and reasonably made." This means that the directors of a Federal Eeserve Bank and the officers ap- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 95 pointed by them must exercise their best judgment in granting discount accommodations. They must assure themselves that the discounts are such as can be safely made, and reasonably made, with due regard to the possible requirements of other member banks which may ask for accommodations later on. The lending power is not vested in the Federal Reserve Board and the reason for this is probably twofold. First. The Federal Eeserve System is not a central bank. It is a regional system comprising twelve banks. Congress did not intend that there should be a centralized control of credits. Second. In a country embracing so vast an area as the United States, it would be a very difficult task, if not an impossibility, for a central board to pass intelligently upon the security of the paper offered for discount, which must necessarily come from all sections of the country. NO CONTROL OVER MEMBER BANK LOANS. While the Federal Eeserve Act was intended to strengthen the banking system of the United States and to provide ready means of rediscounting certain classes of paper, it is also the evident intention of the act to disturb as little as possible the business of the member and nonmember banks, or their dealings with their customers. There is nothing in the Federal Eeserve Act which gives either the Federal Reserve Board or a Federal Eeserve Bank any control over the loan policy of any member bank. A Federal Eeserve Bank can not compel a member bank to make a loan which it does not desire to make, nor restrain it from making a loan which it wishes to make even though it is forbidden by law. A Federal Eeserve Bank can not lend directly to the customers of a member bank, nor does it, in fact, take the initiative in making loans to a member bank for the purpose of enabling the member bank to distribute the funds so advanced to its customers. The Federal Eeserve Bank lends to the member bank against transactions already made, for the purpose of enabling the member bank to restore its reserve to the legal requirement, after the reserve has been impaired or is about to be impaired because of increased loans and deposits. There is a very general popular misconception regarding this, and it may be that some of the member banks are responsible for this misunderstanding without being actuated, however, by sinister motives. Banks, as a rule, do not like to admit to customers that they are short of loanable funds nor do they wish to arouse enmity in declining to make loans or in asking for a reduction of a loan already made. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

96 REPORT OF THE FEDERAL RESERVE BOARD. There are doubtless some bank officers who are able frankly to decline an application for a loan in a way which leaves no sting, but not all bank officers have such tact. Some are frank enough, but their bluntness hurts the feelings of the would-be borrower. It is not unusual, therefore, for some bank officers in declining loans to seek to evade direct responsibility. Formerly, the board of directors was made useful in this capacity. In recent years, however, bank officers have found in the Federal Reserve Board or the Federal Reserve Bank a much more satisfactory buffer than a local board of directors. In many cases, in small towns particularly, banks have found it convenient to pass the responsibility on to the Federal Reserve Bank or the Federal Reserve Board, and have stated to a borrower or would-be borrower that they would like to grant the extension asked for or make the loan desired, but the Federal Reserve would not permit it. Such a procedure has a tendency to relieve the situation as far as the local bank is concerned, but it is certainly unfair to the Federal Reserve S3^stem. This evasion of responsibility has subjected the Federal Reserve Banks to a great amount of unjust criticism and has given the public a wrong impression of the authority and attitude of the Federal Reserve Banks and the Federal Reserve Board. It is entirely true that a Federal Reserve Bank, mindful of its responsibility under the law and acting in accordance with the dictates of ordinary banking prudence, may have had occasion to call the attention of. some of its larger borrowing banks to their large discount lines, which have run in some cases over a period of years Avithout being reduced, and have called the attention of the borrowing banks to the necessity of working themselves into a stronger position. But in no case within the knowledge of the Federal Reserve Board has any Federal Reserve Bank undertaken to say to a member bank what particular loans it should call or ask to have reduced. FEDERAL RESERVE NOTE ISSUES. There is perhaps as much confusion in the public mind regarding the issue of Federal Reserve notes as there is regarding the rediscounting functions of the Federal Reserve Banks, There are some who appear to have an impression that the Federal Reserve Board has power to expand or contract the currency of the country at will and that it has exercised this power in a reckless and arbitrary manner. While the law prescribes that the Federal Reserve Board shall have the right, acting through the Federal Reserve Agent, to grant in whole or in part or to reject entirely the application of any Federal Reserve Bank for Federal Reserve notes, it has never exer- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 97 cised this right. On the contrary, it has always approved promptly every application which has been made for the issue of Federal Reserve notes. One of the purposes of the Federal Reserve Act, as stated in its caption, is to furnish an elastic currency, but there are some whose idea of elasticity is continuous stretching. Currency to be really elastic must be susceptible of expansion or the reverse, as the needs of industry and commerce may require. Many believe that there was a preordained contraction of the currency during the year 1920, determined upon in order to reduce prices. The expansion of nearly $600,000,000 in Federal Reserve note circulation which actually took place during that year shows that the impression is absolutely unwarranted. An increase or decrease in the volume of Federal Reserve notes outstanding is not the result of any preordained policy or premeditated design, for the volume of Federal Reserve notes in circulation depends entirely upon the activity of business or upon the kind of activity which calls for currency rather than book credits. Federal Reserve notes can be issued only against collateral in an amount equal to the sum of the Federal Reserve notes applied for, which collateral security must be notes and bills discounted or acquired by the banks or gold or gold certificates. The law requires each Federal Reserve Bank to maintain a reserve of 40 per cent in gold against its Federal Reserve notes in actual circulation. During the year 1921 the loans of the Federal Reserve Banks to their member banks decreased by about $1,500,000,000; and as the notes discounted with Federal Reserve Banks have been paid off, Federal Reserve note currency has come back to the banks and, in the absence of a demand for it, has not been reissued. Upon payment of commercial paper which has been deposited to secure Federal Reserve notes, there necessarily results either an immediate return of an equivalent amount of notes to the bank or an automatic increase in the percentage of gold reserve available for their redemption. Federal Reserve notes are not legal tender, nor do they count as reserve money for member banks. They are issued only as a need for them develops, and as they become redundant in any locality they are returned for credit or for redemption to the Federal Reserve Banks or to the Treasury at Washington. Thus, there can not be at any time more Federal Reserve notes in circulation than the needs of the country at the prevailing level of prices and wages require, and as the demand abates the volume of notes outstanding will be correspondingly reduced through redemption. The increased volume of Federal Reserve notes in circulation from 1917 to the end of the year 1920 was, in so far as it was not the result of direct exchanges for gold and gold certificates, the effect of advancing wages and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

98 REPORT OF THE FEDERAL RESERVE BOARD. prices and not their cause, just as the reduction which has taken place during the past year is the result of lower prices and smaller volume of business, rather than their cause. Under the Federal Eeserve System, as business expands, as labor is more fully employed, and as production increases and distribution becomes more active, there follows a demand for greater discount accommodations and a need for more currency, and the increased volume of discounts furnishes a means of providing the increased volume of currency required. GOLD KESERVES AND INTEREST RATES. The Federal Reserve Banks held on December 28. 1921, a gold reserve of about $2,870,000 000 and a combined reserve against mem- 5 ber banks' deposits and note issues of slightly more than 71 per cent. Or, if the legal minimum reserve of 35 per cent be set up against deposits, there would remain a gold reserve of slightly more than 97 per cent against Federal Eeserve notes in circulation. For some months past there has been a marked easing in domestic rates of interest. Notwithstanding some unfavorable features in the revenue laws, the investment market is now absorbing securities at reasonable rates which could not have been considered a few months ago. Market quotations of Liberty bonds have steadily advanced until they are now approaching par. Good railroad and industrial bonds have also appreciated, and there have been some noticeable advances in standard stocks. In his annual report recentty sent to Congress, the Secretary of the Treasury remarks that the advance in the price of Liberty bonds and Victory notes is in part a reflection of easier credit conditions and lower interest rates, though increased buying on the part of investors and better distribution of the public debt doubtless account for much of the improvement. High commodity prices and great business activity usually mean lower prices for bonds and other securities yielding a fixed income, while reduced commodity prices and lower money rates bring higher market prices for bonds. CONCLUSION. In conclusion, a word more may be added by way of summary: A Federal Reserve Bank is what its name implies. It is a reserve bank. It holds on deposit the entire legal reserve of its member banks. It is not authorized by law to receive deposits from the public, nor to lend directly to individuals, firms, or corporations. It can rediscount paper of short maturity for member banks with their indorsement; that is, notes, drafts, and bills of exchange issued or drawn for agricultural, industrial, or commercial purposes, or the proceeds of which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 99 have been used or are to be used for such purposes. Based in part on the security of such paper, it can put in circulation Federal Eeserve notes in sufficient volume to meet the requirements of ordinary business transactions or of an acute emergency. But the Federal Reserve System should not be expected to accomplish the impossible. It can not control individual judgment or action. It is not a panacea for all economic and financial ills, and it can not, however skillful its administration may be, prevent periods of depression, although it can do much to modify them. Other nations, such as Great Britain and France, with their great central banking institutions, have always had their years of prosperity and their periods of depression, although they have been free from the money panics which we formerly had in this country as a result of our inadequate banking system and which we would, no doubt, have had in the most aggravated degree a year or so ago but for the efficiency and stabilizing influence of the Federal Reserve System. There are well-defined cycles in business. There are the short and frequently recurring cycles incident to the changes of the seasons and there are longer swings or periods of prosperity and depression, the rotation being about as follows: (1) Business activity and increasing production; (2) excessive expansion and speculation, followed hitherto by panic and forced liquidation; (3) a long period of slow liquidation, business depression, and stagnation; and (4) revival. There are those who believe that the beginning of revival is not far distant. When it does definitely set in it will be followed in due course by a new era of prosperity. In the light of recent experience we should remember, when we again enter into a period of full prosperity, that a reaction will follow sooner or later; and if the flow of the incoming tide can be controlled so that the crest may not be reached too rapidly nor rise too high the subsequent reaction will be less severe and the next period of industrial and commercial activity and general prosperity will be marked by saner methods, greater achievement along constructive lines, and by a longer duration than any which we have had before. We should not forget that the ebb of the tide is always equal to the flow and that the ebb in the Bay of Fundy, where the tide rises highest, is far greater than in safer harbors where the tidal fluctuations are more moderate. 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

APPENDIX A. OUR PRESENT FINANCIAL AND ECONOMIC PROBLEMS. By Hon. SYDNEY ANDERSON, Member of the House of Representatives from Minnesota and Chairman of the Joint Congressional Commission of Agricultural Inquiry. ADDRESS BEFORE BALTIMORE CHAPTER OF AMERICAN INSTITUTE OF BANKING. I am very grateful for this opportunity to tell you something of the work that the Joint Commission of Agricultural Inquiry has been doing. It is always a privilege to address an audience of Americans. It is not only a privilege but a responsibility in these days when the developments of each 24 hours demonstrate that the problems of peace are no less urgent or important than those of war. It is good to be an American now, when American leadership is daily proving its power and influence in world affairs. It is good to know that we have a right to hope for the lifting of the burdens incident to the competitive race for national armaments. I want at the outset to say that the commission is conducting an inquiry, not an inquisition. We have set up, for the purpose of obtaining information for the commission's use, more than 200 voluntary committees with a cooperating organization consisting of more than 3,000 persons. These cooperating organizations have included representatives of practically all of the principal trades and industries in the United States, including railroads. I have been asked to discuss specifically the investigation which has to do with the relation of the Federal Reserve System to the crisis through which we have been passing and the causes of the spread between producers' and consumers' prices. In order to appreciate the relation of the Federal Reserve System to the crisis, it is necessary to discuss the events which led up to it, and the decisions of the Treasury Department and the Federal Reserve Banks which had a direct bearing upon these events. The Federal Reserve Banks began operations in November, 1914, shortly after the beginning of the great World War. The period which followed their organization was one of great expansion and business activity, due in part, I think, to the reduction of reserve requirements, increased mobility of reserves and credit, and the greater expansion permitted under the Federal Reserve System. The normal activity of the period was augmented by the enormous demands of the warring countries in Europe for supplies, which were mainly bought on forward contracts in which price was second in importance to the certainty of delivery. During this period prices of commodities increased 75 per cent and loans and discounts of all banks, State and National, approximately 40 per cent. The discount rates of the Federal Reserve Banks, in accordance with the uniform policy of banks of issue the world over, were maintained during this period on a basis somewhat above the market rates on the class of paper to which they were applicable. With our entrance into the World War, it became apparent that the costs incident to its prosecution could not be paid from the current collection of 100 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 101 taxes, and it was necessary to provide immediate payment by the manufacture of credit. The methods employed in this manufacture of credit are no doubt familiar. The point I wish to bring out is that at this time two decisions were made which had a profound bearing and influence upon the conditions which subsequently developed. The first of these was the adoption by the Treasury Department of the policy of offering issues of Government bonds and certificates of indebtedness at rates below the market, which, in my judgment (and this is a point which doubtless will be contradicted by economists and bankers), served to increase the total borrowings of the Government and to promote an unnecessary expansion. The second decision was incidental to the * first and involved the determination of the Federal Reserve Board and Federal Reserve Banks to maintain discount rates at a point below going market rates upon the paper to which they were applicable. It is worthy of note in this connection that, notwithstanding the opportunity and even inducement to expansion which this policy offered, the expansion of loans and discounts of all banks during the period of American participation in the war amounted to only 15 per cent and the increase in prices during the period to 17 per cent. This was doubtless due to restrictions, moral and legaj, imposed during the war upon the use of credit, the production of nonessentials, and upon consumption generally. Shortly before signing the armistice, when the hope of peace became a practical certainty, there began a short period of temporary business recession accompanied by a very slight contraction of loans and discounts. This lasted, however, only to about April first. Had discount rates been raised sharply and progressively, following this period, much of the expansion, speculation, spending, and extravagance which characterized the postwar period might have been avoided. At this time, however, the flotation of the Victory loan, which it was then thought might amount to $6,000,000,000, was under consideration and the Treasury Department feared that a change in the policy touching discount rates, and in its own policy of selling bonds below the market rates, might result in endangering the loan and perhaps in compelling the refunding of the previous issues as well as in depressing the price of existing private bond issues. Thus, the policy of the Federal Reserve Banks touching discount rates was again subordinated to the policy of the Treasury Department in meeting its credit requirements. In the absence of the restraining influence of increasing interest rates upon borrowings at the Federal Reserve Banks and as a result of the removal of the restrictions, moral and legal, upon the use of credit, upon production of nonessential commodities and upon consumption generally, there ensued a period of intense business activity, expansion, speculation, and extravagance, the like of which has never before been seen in this country or in the world. This period of expansion was characterized by the phenomena which accompany a period of intense business activity preceding a period of business depression. People began to spend freely and extravagantly and in many cases beyond their current incomes. Orders piled up in great numbers and in duplication. Great volumes of debts were made for plant extension, production, and consumption; banks became extended and gradually the reserves of the banks of issue declined toward the legal minimum. Expansion of loans and discounts during the postwar period exceeded 30 per cent, while prices in the same period rose 33 per cent. In December, 1919, the Federal Reserve Board and Federal Reserve Banks began to take the action which, in my opinion, should have been taken in the early parr or' that year. Discount rates were raised slightly in December and more radically and progressively during the early part of 1920. By June, 1920, 85227—22—8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

102 REPORT OF THE FEDERAL RESERVE BOARD. prices of some commodities bad already declined considerably and this was especially true of the farm products of which we produce a surplus in this country. The phenomena which precede periods of industrial depression and business stagnation began to be evident. There developed an exhaustion of current capital and credit. Bankers were forced to stop loaning and then to call loans. Goods were forced on the markets and backed up in the channels of distribution, resulting in increased pressure for loans when credit could not be had except at a high price, and in many instances could not be obtained at all. Orders were canceled. The psychological factors, which in times of intense business activity combined to produce an atmosphere of optimism and to develop a sellers' market, now conspired to produce an atmosphere of pessimism and to develop a buyers' strike. By June, 1921, loans and discounts of national banks had been reduced 12 per cent, Federal Reserve notes 15 per cent, bills discounted and bills bought by Federal Reserve Banks 36 per cent. By June 30, 1921, wholesale prices of all commodities had declined 44 per cent and prices of farm products 54 per cent. The tremendous decline in prices of agricultural commodities and the hardships attendant upon this decline, and upon the necessary restrictions of credit imposed during the period, reacted in August and September, 1920, in a demand for amelioration of the discount policy of the Federal Reserve Banks in the direction of lower discount rates. I have no doubt that, if it had been possible to take action to arrest the processes of liquidation at this period without incurring great danger of precipitating a financial crash in the midst of industrial crisis, such action would have been beneficial, particularly from the standpoint of the farmers whose products were hit by price declines with greater force than any others. However, inasmuch as no change in policy took place at this time, an estimate of its effect must be purely speculative. It is clear that any change of policy at this time must have been a sufficiently radical reversal of the existing policy to induce borrowings on the part of member banks and to encourage lending to their customers. Many of the banks at this time were overextended, the unadjusted reserve ratio in many of the Federal Reserve districts at a very low point, and the reserves of the system as a whole close to the legal minimum. There was no certainty that a policy of discount rates below market rates would have served to arrest the processes of liquidation, and on the other hand, it seems probable that such a policy would have been attended by bank failures precipitating a financial crash in the midst of a period of industrial crisis. The extent of the expansion which occurred during the entire period following the beginning of the World War to October, 1920, is illustrated by the fact that this total expansion was in excess of 100 per cent. Bank loans over this entire period increased at a rate three times as great as that of the period preceding 1914. There is a very strong feeling in the country that the policy of restriction of credit was applied in many districts with unnecessary vigor and in many instances with unnecessary harshness; that loans were sometimes called where the wiser policy would have been to extend credit at a high rate. On the whole, however, the most significant fact developed by the experience of the past six years of the operation of the Federal Reserve System is that the system has proved sufficiently flexible to meet the requirements of the period of the greatest expansion that the country is likely to know, and to contract credit and currency in correspondence to the lessening of business activity. On the other hand, the experiences of the past eighteen months have demonstrated the inadequacy of the present banking system of the country from the standpoint of meeting the requirements of the farmer. The. farmer is entitle*1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE FEDERAL RESERVE BOARD. 103 to and should have credit of a maturity corresponding to his turnover and his ability to pay his indebtednes at maturity from the proceeds of the farm; that is, a credit running from six months to three years. The existing banking machinery of the country does not fill these requirements. In addition, the farmer is entitled to just as good an approach to the sources of credit as any one else in any other industry. In my opinion, these requirements can all be met by an adaptation of the present banking machinery which will make it possible for existing banking institutions to furnish credit of the maturity desired without tying up their resources in such a way as to limit the commercial usefulness of these resources. To accomplish this result, I would permit all existing financial institutions dealing directly with the public, including national and State banks, farm loan associations, and live-stock companies, to make loans to farmers for periods of from six months to three years and to rediscount the paper with the Federal land banks or to act directly as the agent of the Federal land banks in making these loans. The farm paper indorsed by the financial institution taking it to the Federal land banks would be made the basis of short-time debentures by the Federal land banks which would be sold to the investment public in the same way as farm loan bonds are now sold. I would authorize the Federal land banks to rediscount any of such paper held by them with the Federal Reserve Banks when the paper had reached the maturity of six months or less. I would also authorize the Federal Reserve Banks to buy and sell debentures of Federal land banks as they now buy and sell Federal farm loan bonds. This adaptation of existing bank machinery would give the farmer the kind of credit he needs without the additional burden of overhead and investment which would be necessary in the creation of new institutions to meet his credit requirements, and without tying up the quick assets of financial institutions in such a way as to limit their ability to function in respect to the short-time requirements of either agriculture or industry. This plan is approved by a majority of the Federal Reserve Board and Treasury officials. The impression seems to be rather general in the country that the contraction of loans and discounts and of credit during the period of deflation, through which we have just passed, was much greater than it actually was and that the liquidation which took place in the agricultural sections was relatively greater than in the industrial sections. The Commission gathered a great deal of data in an effort to demonstrate the truth or falsity of both of these impressions. The compilations made by the Commission, showing total loans and discounts of all banks, include the figures to June 30, 1921. The contraction of loans and discounts of national banks from June, 1920, to June, 1921, amounted to 12 per cent; of State banks and trust companies, to 1.6 per cent: and of all banks, exclusive of savings banks, 6.5 per cent. Total bills discounted and bills bought by Federal Reserve Banks were reduced 36 per cent; Federal Reserve note^ in circulation, 15 per cent. It is rather significant as an indication of the power of expansion of the Federal Reserve System that expansion during the period of business prosperity and contraction during the period of business depression, were both greater in national banks and member banks than in nonmember banks. With respect to the second impression that liquidation was greater in agricultural than in industrial communities, the Commission made a study which involved obtaining, analyzing, and compiling the statements of more than 9,000 banks. For the purpose of this study the counties in the United States were divided into three classes: agricultural counties, semi agricultural counties, and nonagricultural counties. The agricultural counties included all counties in which 80 per cent or more of the products produced were agricultural in character; the semi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

104 REPORT OF THE FEDERAL RESERVE BOARD. agricultural counties, counties in which 50 per cent to 80 per cent of the products produced were agricultural, and the nonagricultural counties, those in which less than 50 per cent of the products were agricultural in character. An examination was made of the bank statements of all the member banks in these counties, as of May 4, 1920, and as of April 28, 1921. From these statements a tabulation was made showing ttye percentage of increase or decrease in loans and discounts, in borrowings from the Federal Reserve Banks, in borrowings from other banks, and in total deposits in the three classes of counties, which we have been considering, during the period. The tabulation shows that loans and discounts in agricultural counties during the period were reduced 1.2 per cent; in semiagricultural counties, 1.3 per cent; in nonagricultural counties, 5.6 per cent, and in the country as a whole 4.5 per cent. It shows also that borrowings from the Federal Reserve Banks increased in the agricultural counties 56.6 per cent, and decreased in the semiagricultural counties 0.2 per cent; in the nonagricultural counties 28.5 per cent, and in the country as a whole, 19.5 per cent. Borrowings from other banks increased in agricultural counties 65.7 per cent; in semiagricultural counties 19 per cent; in nonagricultural counties 0.6 per cent. Total deposits decreased in agricultural counties 11.1 per cent; in semiagricultural counties 5.2 per cent; and in nonagricultural counties 4.4 per cent. The greater reduction in deposits in the agricultural counties accounts, in part, at least, for the relatively heavy demand upon the Federal Reserve System by banks in agricultural communities and likewise accounts for the .pressure felt by banks in agricultural counties during the period of deflation. On the whole, it seems safe to conclude that while there was unquestionably great pressure for liquidation in the agricultural sections of the country as well as in the industrial sections, and that this pressure resulted in great hardship upon both the banks and their customers, the actual liquidation of bank loans in the agricultural sections of the country has been relatively less than in the industrial sections. I have no doubt that this is due in large measure to the fact that the faster turnover of commercial stocks in most instances diminished losses incident to their liquidation, while farm crops were, for the most part, sold at prices wholly inadequate to liquidate current agricultural debts. It was urged also before the commission that high rates for call money in New York City resulted, during this period, in drawing money and credit from the agricultural sections of the country to New York for speculative purposes. The commission thoroughly investigated this claim and made an analysis of the balances kept by out-of-town banks in New York City banks during the period, and also of the amounts loaned by New York banks for out-of-town correspondents on the stock exchange. This analysis showed that during the entire period from January, 1920, to July, 1921, the balances of out-of-town correspondents in New York banks and the loans placed by New York banks for out-of-town correspondents in street loans constantly declined. During this period the balances of out-of-town banks in New York banks and loans by New York banks for out-of-town correspondents on the stock exchange, combined, declined $520,000,000. The tremendous and very urgent demands for industrial and agricultural loans during this period resulted in a movement of money and credit away from New York instead of to New York. This conclusion is verified by an examination of the transactions of the New York Federal Reserve Bank through the gold settlement fund, which shows an aggregate net movement of money away from New York during this period of nearly $400,000,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EEPOET OF THE FEDEBAL, BESEBVE BOAED. 105 I come now to a discussion of the causes of the spread between producers' and consumers' prices. The usual method of approach to this question is to state that the principal cause of this spread is the profiteer, who preys upon the necessities of the people, and that all the ills of distribution can be cured by putting the profiteers in jail. I am willing to assert that if there is one profiteer in the country, there is one too many, and that he ought to be in jail, but I do not believe that the problems of distribution can be solved by putting profiteers in jail. The first essential to the solution of the problems of distribution is a general understanding on the part of those who contribute to distribution, either in the way of products or services, and on the part of the general public, as well, that there is a real problem of distribution, and that in its solution is the hope of more adequate prices from the producers' standpoint and more reasonable prices from the consumers' standpoint. We know that the costs of distribution were slowly but steadily increasing prior to 1913. So far as we can ascertain, they have about doubled since 1913, and to-day the costs of distribution represent about one-half of the price which the final consumer pays. These increases in costs do not occur wholly in any one place in the line of distribution. They occur as a part of the price of every element of service performed in connection with the distribution of the product all along the line. The price which the final consumer pays is a composite of thousands of other prices and includes the cost of production, sorting, grading, packing, bulking, transporting, storing, insuring, selling and delivering the product, including the overburden of interest and wages, rent, and administration, all along the line. In general, all of these costs apparently have increased, and in recent months have not declined in anything like the proportion in which commodity prices have fallen. I am unable to state the proportion which these increased costs bear to the total cost of distribution or their absolute relation to costs for the same services in 1913 or any prior year, but it is certain that they do not represent, the total of the increased costs of distribution. Part of these costs are represented by additional services incident to the complex character of our civilization and the congestion of population in the large cities. Merchandising to-day consists largely of selling the consumer what he wants, when he wants it, and making him pay for it. A witness before the commission recently put the elements of merchandising in the following order: First, the exact article or type of goods desired or that would utimately satisfy; second, a pleasing environment; third, a pleasing and dependable quality of service; fourth, quality of merchandise and lowest prices. This viewpoint is clearly typical of merchandising to-day. Goods are sold not so much by offering a price as by offering service, convenience, dependability, reputation, and credit. The local merchant acts as the outlet of the manufacturer and wholesaler rather than as the local buyer for the community. He is frequently persuaded to overstock with goods and to purchase goods for which there is small or no local demand, thus lengthening his turnover and the cost of doing business. In the principal retail trades there are approximately 1,000,000 retail dealers, or 1 for each 110 inhabitants or 1 for each 25 families. Of grocers and delicatessen dealers there are 335,000, or 1 for each 315 people or 73 families. There are 27,000 wholesalers, or 1 for approximately 4,000 inhabitants or 900 families. Whether this number of wholesalers and retailers is excessive and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

106 REPORT OF THE FEDERAL RESERVE BOARD. adds to the economic burden of the country, it is extremely difficult to say, as there is a wide difference of opinion, but it is altogether probable that-the total includes a large number whose existence can not be justified from the standpoint of economic and efficient distribution. Another element in the spread between producers' and consumers' prices is to be found in the quality, quantity, and variety of service, environment, and atmosphere demanded by the consumer from the merchant. The variations of quantity, quality, and variety of service demanded or furnished is reflected in a wide variation of price of the same commodity at different stores in the same city. On the whole, however, the attitude of the consumer is such as to offer very little hope of reducing the spread between producers' and consumers' prices through reducing the quantity, quality, or variety of the service required. Reduction of this spread must come for the most part through a reduction in the cost of the elements of service and overburden all along the line; by more efficient methods of distribution; by reducing unnecessary transportation hauls; by more efficient merchandising methods; by more closely relating output to market; by speeding up turnover; by reducinig unnecessary stocks; and by otherwise shortening and speeding up the steps between producer and consumer. This means, first of all, the completion of the cycle of readjustment of prices and wages; second, a more thorough understanding of the problem and the elements in its solution by everyone concerned with it; and third, a recognition, on the part of everyone contributing any service in the process of distribution, of his responsibility to his community and to the country to do his part toward reducing the burden. There is no legislative pill that will cure the ills of distribution, no governmental panacea which can be applied to the solution of these problems. The problem is the problem of each of us and of all of us, and the banker as well as the manufacturer and merchant must contribute his share in reducing the spread between producers' and consumers' prices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXHIBITS. 107 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISCOUNT RATES. o 00 No. 1.—DISCOUNT RATES (HIGH AND LOW FOR EACH YEAR) IN FORCE SINCE ORGANIZATION OF FEDERAL RESERVE BANKS. Character of paper and maturities. Commercial, agricultural, and live-stock paper, n. e. s. Federal Reserve Bank. Within 10 days. i w Boston: 1914-15 2 6 1916 1917 1918 1919 . 1920 . 1921 New York: 1914-15 2 51 1916 3 1917 1918.. 1919.. 1920 1921 .woL 3 3 OC OC 11 to 30 days. .hgiH 6 4 51 4 .woL \ Within 15 days. 4 31 4 4 .hgiH 4 4 7 7 31 4 4! 7 7 .woL 16 to 30 days. 4 4 41 41 3 31 4 41 .hgiH 5 5 41 7 7 41 41 7 7 .woL 31 to 60 days. 4 41 4i 41 4 41 .hgiH 6 4 5 5 7 7 6 4 41 41 7 7 .woL 61 to 90 days. 4 4 4 41 .hgiH 6 4 5 5 43 41 7 7 4 ! 6 4 : 4 4 | 41 4a 41 4! 41 j 7 41 7 .woL Agricultural and live- stock paper 91 days to 6 months. 4 4 4 41 4 4 4 41 41 .hgiH 6 5 5 5 5 7 7 6 5 5 5 5 7 .woL Paper secured by U. S. Government obligations. Within 15 days. 5 5 5 5 5 5 5 5 5 5 5 S 7 ,41 .hgiH 4 41 6 6 4 41 6 6 .woL 16 to 90 days. 4 41 3 4 4! .hgiH 4 41 6 6 4 41 6 6 .woL Trade accept- ances within 60 days (see notel). 4 4 41 4 41 .hgiH 31 4 41 41 7 7 31 4 41 41 7 .woL Trade accept- ances 61 to 90 days. 3 4 41 41 31 31 4 41 4* .hgiH 31 3* 4 41 41 7 7 3* 4 41 41 7 .woL Bankers accept- ances within 3 months. 31 3 31 4 41 41 31 3* 31 4 41 41 .hgiH 5 7 41 6 .woL Com- modity paper within 90 days.1 •a 3 31 4 4 5 4* 4 4 41 41 .woL 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Philadelphia: 1 1914-15 2... 4 6 6 41 3 3 3 1916 4 4 41 41 3 31 31 1917 3 I 4£ 4 4-1 5 41 31 3 4 31 31 4 31 1918 4 I 41 41 41 4f 5 5 4 31 4i 4 4 41 1919 4 4f 4! 4! 41 5 5 41 4 41 4i 41 41 1920 41 6 4f 4f 6 6 5 6 41 6 41 41 6 6 5 1921 4* 6 41 j 6 41 6 6 41 6 41 6 41 41 6 6 41 Cleveland: 1914-15 2 4 6 6 5 31 4 1916 4 4^ 5 5 3 4 1917 31 4 41 5 5 31 3 4 31 3 4 4 1918 41 41 5i 5 4 31 4i 4 4 41 1919 4! 41 5i 51 41 4 41 41 41 41 41 41 1920 4f 6 6 5i 6 4i 6 4i 41 6 5! 41 1921 5 6 6 5 6 5 6 5 5 6 6 5 Richmond: 1914-152.. 4 6 6 5 31 4 3 1916 4 4 5 41 31 4 31 1917.. 4 41 41 31 31 4 31 31 4 31 1918.. 41 5 5 41 4J 31 44 L 4 4 41 1919.. 4| 41 41 5 5 41 4 41 4 41 41 1920.. 4i 6 6 5 6 41 6 41 41 6 6 5 1921.. 5 6 6 5 6 5 6 5 5 6 6 5 Atlanta: 1914-152.. 4 31 31 1916 4 4 5 5 31 31 1917 4 41 5 5 31 31 4 31 31 4 1918., 41 41 5 5 4 31 44 4 4 41 1919. 4f 41 51 5 4! 4 4| 4 41 41 1920. 4f 7 7 51 6 41 6 41 41 7 6 5 1921. 5 7 7 5 6 5 6 5 5 7 6 5 OC OC OC — CO CO CO 4 OC OC OC 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. O 2 Nov. 16,1914, to Dec. 31, 1915. CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 1.—DISCOUNT RATES (HIGH AND LOW FOREACH YEAR) ][N FORCE SINCE ORGANIZATION OF FEDERAL RESERVE BANKS—Continued. Character of paper and maturities. Commercial, agricultural, and live-stock paper, n. e. s. Federal Reserve Bank. Within 10 days. Chicago: 1914-15 2 1916 1917. 1918 1919 .. . .... .... 1920 I9fil St. Louis: 19,14-152 1916 . .. 1917 1918 1919 1920 1921 Minneapolis: 1914-152 1916 1917 .hgiH 6 34 6 3 6 4 .woL 34 34 OC OC 11 to 30 days. 4 4 .hgiH 6 4 6 4 6 4 .woL Within 15 days. 4 4 4 4 4 4 .hgiH 4 4 41 7 7 .woL 16 to 30 days. 34 4 4 41 5 I 4 34 4 41 6 6 5 4 4 .hgiH 31 to 60 days. 1 44 4 41 44 41 7 7 5 44 4 4f 44 41 6 6 5 44 4 .hgiH 6 44 44 41 41 7 7 6 4 44 41 6 6 64 4 44 .woL 81 to 90 days. 4 4 4 44 41 41 5 4 4 4 44 41 5 4 4 4 .hgiH 6 44 5 5 41 7 7 6 4 44 41 41 6 6 64 44 5 .woL Agricultural and live- stock paper 91 days to 6 months. 44 44 44 41 41 41 5 4 4 4 44 41 41 5 44 44 44 .hgiH 6 5 54 54 54 7 7 6 5 54 54 54 6 6 64 5 54 .woL Paper secured by U. S. Government obligations. Within 15 days. 5 5 5 54 54 54 5 5 44 44 54 54 54 5 5 5 5 .hgiH 34 4 41 6 6 34 4 41 54 6 34 .woL 16 to 90 days. 3 34 4 44 5 34 34 4 44 5 3 .hgiH 4 41 41 6 6 4 41 41 54 6 4 .woL Trade accept- ances within 60 days (see note 1). 34 4 4 44 5 34 4 4 44 5 34 .hgiH 34 34 44 44 7 7 34 34 4 44 44 6 6 OC OC .woL 34 ;34 34 44 44 5 34 3 3 4 44 44 5 CO CO HM HM Trade accept- ances 61 to 90 days. .hgiH 34 4 44 44 7 7 34 34 4 44 44 6 6 34 4 .woL 34 34 4 44 ±4 5 34 34 34 4 44 44 5 OC OC Bankers' accept- ances within 3 month-;. .hgiH 6 6 54 54 .woL 1 Com- modity paper within 90 days.l 5 5 5 5 .hgiH 3 34 34 3 34 44 .woL 3 3 34 3 3 34 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1918 ....I- — 1919... 1920 6 5 1921 6 Kansas City: 1914-152.... 31 31 3 3 1916 31 | 4 4 3 1917 4 4 4 |4 4 4 1918 4J 4 4 | 4| 1919 5 5 1920 6 5 51 5 1921 6 5 6 5 Dalles: 1914-15 2.... 3 1916 1917 4 3J 1918 4* 4 1919 5 4* 1920 6 I 5 51 5 1921 7 5| 7 San Francisco: 1914-152.... 1916 1917 31 4 31 i 4 1918 1919 4* 1920 6 5 1921 6 6 5 CO CO CO 8 o 3 0) 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 %c. 31, 1915. 3 Maximum rate during 1919 for maturities 16 to 60 days, 4| per cent. < Commodity paper rates for bills maturing within 30 days, 3£ per cent; 31 to 60 days, 4 per cent: 61 to 90 days, 4£ per cent. * 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 March, 1917, the Federal Reserve Board ruled that when the 60-day trade acceptance rate was higher than the 15-day commercial paper rate, trade acceptances maturing within 15 days were to be 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. No. 2.—FEDERAL RESERVE NOTES OUTSTANDING, HELD BY ISSUING FEDERAL RESERVE BANK, AND IN ACTUAL CIRCULATION; ALSO GOLD AND ELIGIBLE PAPER PLEDGED AS COLLATERAL FOR OUTSTANDING NOTES. MONTHLY FIGURES FOR 1921. [In thousands of dollars.] Total. Boston. I 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 i n ty sa . s Dallas. Sa c n i s F co ra . n- O H Federal Reserve notes: O Outstanding— 4 Jan. 31 484,314 279,999 1,001,385 271,580 I338,525 156,651 174,268 559,237 144,176 74,984 110,562 76,051 296,896 Feb.28 345,123 278,820 917,382 271,760 j 328,666 156,008 170,435 533,742 144,583 73,266 107,861 69,908 292,692 Mar.31 265,571 271,223 919,102 264,828 j 315,730 148,666 158,150 520,987 139,205 70,256 102,903 63,855 290,666 Apr. 30 158,204 269,773 878,868 252,903 I305,932 142,140 164,042 505,015 132,945 67,545 98,261 58,127 282,653 May31 083,681 272,517 856,610 244,668 I289,307 132,104 165,603 496,216 128,681 63,908 91,884 52,763 289,420 June 30 000,430 267,394 830,752 241,643 277,982 125,649 157,766 490; 229 123,578 60,618 85,962 48,611 290,246 July 30 920,595 262,428 801,726 '242,854 266,080 120,453 147,135 480,696 122,061 58,362 82,8^9 45,286 290,635 Aug. 31 849,730 257,819 773,775 242,434 256,143 114,313 134,639 482,511 121,171 57,904 82,604 42,327 284,090 Sept. 30 824,274 250,833 770,414 230,944 246,345 116,085 140,263 471,242 126,198 59,494 82,347 44,493 285,616 Oct. 31 712,957 240,406 737,030 220,713 237,086 115,390 131,416 449,811 124,470 60,736 77,428 42,740 275,731 Nov. 30 698,682 227,540 766,800 217,473 233,022 115,885 124,645 439,698 121,305 59,396 76,486 40,131 276,301 Dec. 31 781,791 220,157 816,748 222,870 239,864 117,457 128,644 447,218 114,103 60,477 75,438 39,538 299,277 Held by issuing bank- w Jan. 31 401,159 15,613 210,554 12,527 19,455 6,241 4,424 54,167 18,597 1,726 7,908 4,415 45,532 o Feb.28 296,569 13,094 119,794 12,597 18,637 5,865 5,853 36,778 20,650 2,259 7,720 4,068 49,254 Mar.31 360,623 12,123 141,219 25,078 28,963 5,556 4,108 44,558 24,645 2,181 9,302 4,349 58,541 Apr. 30 314,193 11,271 132,167 17,347 26,422 6,004 7,647 34,041 20,882 2,224 8,933 3,249 44,006 May31 331,812 15,864 140,698 14,023 20,905 5,606 8,513 36,378 20,738 2,595 8,716 2,823 54,953 June 30 352,344 17,236 147,566 15,189 23,916 5,970 6,499 45,345 20,462 1,755 7,405 2,436 58,565 July 30 370,969 16,458 150,015 21,838 22,944 7,429 9,358 47,461 21,527 2,364 7,239 3,225 61,111 Aug. 31 368,264 16,408 141,455 28,669 21,291 7.307 7,171 51,080 22,812 2,286 8,196 3,221 58,368 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Sept. 30 341,847 16,122 129,918 1 21,881 20,716 6,252 5,684 47,880 23,154 2,826 I 8,726 2,979 55,709 Oct. 31 291,531 18,497 105,244 | 18,901 19,004 7,482 4,812 37,223 20,412 3,003 I 6,358 3,080 47,515 Nov. 30 332,676 18,127 135,210 I 19,600 19,530 9,226 4,846 38,115 21,365 3,044 | 7,695 3,493 52,425 Dec. 31 372,399 17,622 153,385 j 22,146 25,089 10,356 7,173 44,755 18, 857 3,688 I 6,394 4,068 58,866 In actual circulation- I Jan. 31 3,083,155 264,386 790,831 259,053 319,070 150,410 169,844 505,070 125,579 73,258 102,654 71, 636 251,364 Feb. 28 3,048,554 265,726 797,588 259,163 310,029 150,143 164, 582 496,964 123,933 71,007 100,141 65,840 [ 243,438 Mar. 31 2,904,948 259,100 777,883 239,750 286,767 143,110 154,042 476,429 114,560 68,075 93,601 59,506 j 232,125 Apr.30 2,844,011 258,502 746, 701 235,556 279,510 136,136 156,395 470, 974 112,063 (35,321 89,328 54,878 ! 238,647 May 31... 2,751,869 256,653 715,912 230,645 268,402 120,498 157,090 459,838 107,943 61,313 83,168 49,940 | 234,467 June 30 2,648,086 250,158 683,186 226, 454 254,066 119,679 151,267 444, 884 103,116 58,863 78, 557 46,175 231, 681 July 30 2,549,620 245,970 651,711 221,016 243,136 113,024 137,777 433,235 100,534 55,998 75,640 42,061 229,524 Aug. 31 2,481,466 241,411 632,320 213,765 234,852 107,006 127,468 431,431 98,359 55,618 74,408 39,106 225,722 Sept. 30 2,482,427 234,711 640,496 209,063 225,629 109,833 134,579 423,362 103,044 56,668 73,621 41,514 229,907 Oct. 31 2,421,426 221,909 631,786 201,812 218,082 107,908 126,604 412,588 104,058 57,733 71,070 39,660 228,216 Nov. 30 2,366,006 209,413 631,590 197,873 213,492 106,659 119,799 401,583 99,940 56,352 68,791 36,638 223,S76 Dec. 31 2,409,392 202,535 663,363 200,724 214,775 107,101 121,471 402,463 95,246 56,789 69,044 35,470 240,411 Collateral pledged as security for outstanding F. R. notes: Gold and gold certificates— Jan. 31 1, 264,753 157,992 207,585 148,532 179,227 47,316 61,183 202,182 52,134 25,218 36,896 19,036 127,452 Feb. 28 1, 222,071 155,263 204, 802 118,013 180.988 49,083 59,679 191,247 62, 669 25,250 35,864 17,645 121,568 Mar. 31 1,270,930 136,166 270,115 121,280 195,542 50,621 55,560 176,112 58,020 24,410 36,547 16,115 130,442 Apr. 30 1,311,794 168,876 297,651 121,236 195,384 39,935 57,653 179,220 62,464 21,554 31,244 15,048 121,529 May31 *1,470,729 171,060 410, 975 108,801 192.989 35,399 69,116 228, 001 58,577 20,222 i 31,147 11,345 133,097 June 30 1,600,328 179,437 509,430 127,775 188,065 40,224 60, 026 233,914 52, 273 20, 992 31,626 12,804 143,762 July 30 1,611,689 187,871 488,170 140,986 183,462 36,468 51,591 252, 581 51,077 19,441 31,942 11,529 156,571 Aug. 31 1,694,523 179,541 502,018 152,758 181,946 34,568 47,218 320,476 57,147 18,588 35,088 8,529 156,646 Sept. 30 1,755,796 169,146 576,001 145,877 177,647 33,720 49,812 315,588 55,774 18,393 35,430 11,916 166,492 Oct. 31 1,708,409 179,259 545,044 131,245 165,408 31,305 45,070 301,116 66,086 16,705 35,962 12,502 178,707 Nov. 30 1,779,605 161,913 594,034 142,005 165,564 32,605 43,988 302,283 66,921 17,195 30,589 12,731 209,777 Dec. 31 1,872,670 159,910 653,004 144,402 177,327 38,057 45,225 1312,163 66,158 16,856 28,042 11,093 220,433 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 2.—FEDERAL RESERVE NOTES OUTSTANDING, HELD BY ISSUING FEDERAL RESERVE BANK, AND IN ACTUAL CIRCULATION; ALSO GOLD AND ELIGIBLE PAPER PLEDGED AS COLLATERAL FOR OUTSTANDING NOTES—Continued. MONTHLY FIGURES FOR 1921---Continued. [In thousands of dollars.] Total. Boston. New York. 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. San Frano Collateral pledged as security for out- w standing F. R. notes—Continued. H Eligible paper- Jan. 31 2,560,207 150,049 911,689 143,597 181,986 116,099 129,681 397,083 75,906 109,149 70,449 I 176,281 Feb. 28 2,517,683 156,774 893,864 162,746 166,664 109,763 129,321 378,931 92,729 72,210 98,586 68,917 ! 187,178 H W Mar. 31 2,292,473 159,018 650,299 147,629 156,132 114,930 123,575 438,625 90, 848 69,836 100,247 63,446 I 177,888 Apr.30 2,147,192 112,172 635,910 157,928 155,017 110,904 116,711 372,047 81,847 70,830 95,784 64,207 173,829 May 31 1,912,147 124,324 523,013 138.182 141,053 104,583 103,032 318,275 81,882 65,227 81,857 63,866 j 106,853 O June 30 1,731, 259 105,995 371,276 125.183 154,052 99,620 100,936 325,297 86,632 70,495 78,546 62,094 I 151,133 July 30 1,624,684 86,544 362,308 118,013 145,155 102,149 105,979 271,956 82,744 72,223 75,334 56,616 | 145,663 w Aug. 31 1,479,891 104,497 344,908 91,742 125,986 104,008 100,341 213,245 73,503 69,753 66,434 53,689 | 131,785 > Sept. 30 1,415,963 90,338 262,906 87,239 131,544 98,906 108,538 227,025 77,395 68,497 74,288 59,874 | 129,413 Oct. 31 1,351,866 78,099 262,487 95,024 129,858 95,792 104,112 207,139 64,310 67,138 78,838 56,238 112,831 Nov. 30 1,207,798 84,239 205,985 82,548 108,960 97, 750 96,954 184,730 68,219 60,351 79,672 54,891 83,499 Dec. 31 1,255,740 72,320 254,896 101,435 119,616 97,243 94,157 194,009 63,240 49,374 71,283 50,739 87,428 < 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 1921. [In thousands of dollars.] Federal Reserve notes outstanding. Federal Reserve notes in circulation. Collateral pledged as security. Federal Reserve Gold available as re- Gold and gold certificates. Eligible paper. notes serve against notes Date. held after setting aside . *>y a reserve of 35 per Amount. Total. Total. va I u n lt. f d I u t n e n i m o d r n — p e- - | I f n u F n . g d R o — l . d Total. r A e m qu 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 . i b ss a u n i k n . g Amount. c p e o n s t i ts. against de- U.S. I Board. Treasury. Amount. Per cent ft 1921 Jan. 7 3,678,024 4,037,806 1,264,762 266,926 106,477 891,359 2,773,044 2,413,262 359,782 408,001 3,270,023 1,704,758 52.1 14 3,599,708 3,832,124 1,265,558 j 266,485 107,396 891,677 2,566,566 2,334,150 232,416 440,217 3,159,491 1,730,132 54.8 21 3,563,197 3,884,258 1,286,304 266,386 109,247 910,671 2,597,954 2,276,893 321,061 447,907 3,115,290 1,731,254 55.6 28 3,511,301 3,835,984 1,288,450 227,387 114,182 946,881 2,547,534 2,222,851 324,683 420,553 3,090,748 1,744,845 56.5 Feb. 4 3,400,093 3,828,748 1,274,747 227,386 103,412 943,949 2,554,001 2,125,346 428,655 324,343 3,075,750 1,750,367 56.9 11 3,368,644 3,794,628 1,269,037 227,385 118,901 922,751 2,525,591 2,099,607 425,984 318,228 3,050,416 1,757,469 57.6 18 3,349,9^0 3,732,292 1,260,546 227,386 113,831 919,329 2,471,746 2,089,404 i 382,342 312,506 3,037,444 1,777,199 58.5 25 3,348,473 3,746,413 1,234,181 227,386 113,359 893,436 2, 512,232 2,114,292 I 397,940 296,767 3,051,706 1,771,940 58.1 Mar. 4 , 3,346,989 3,687,103 1,236,560 227,386 109,120 900,054 2,450,543 2,110,429 340,114 304,378 3,042,611 1,802,883 59.3 11 3,337,009 3,703,287 1,240,570 227,386 115,694 897,490 2,462,717 2,096,439 366,278 331,169 3,005,840 1,801,109 59.9 18 3,310,900 3,552,985 1,257,807 227,386 116,071 914,350 2,295,178 2,053,093 242,085 348,020 2,962,880 1,793,667 60.5 25 3,294,876 3,605,230 1,245,507 226,380 104,511 914,610 2,359,723 2,049,369 310,354 364,147 2,930,729 1,777,666 60.7 Apr. 1 3,263,111 3,578,807 1,300,345 233,853 106,157 960,335 2,278,462 1,962,766 315,696 354,958 2,908,153 1,834,999 63.1 8 3,246,061 3,523,488 1,306,949 233,852 120,988 952,109 2,216,539 1,939,112 277,427 352,097 2,893,964 1,870,974 64.7 15 3,224,111 3,520,563 1,346,558 233,852 111,570 1,001,136 2,174,005 1,877,553 296,452 355,584 2,868,527 1,870,846 65.2 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. WEEKLY FIGURES FOR 1921—Continued. [In thousands of dollars.] Federal Reserve notes outstanding. Federal Reserve notes in circulation. Collateral pledged as security. Federal Reserve Gold available as re- Gold and gold certificates. Eligible paper. notes serve against notes Date. held after setting aside . bY a reserve of 35 per Amount. Total. Total. va I u n lt. f d I u t e n n i m o d r n — e p - - I f n u F n . g d R o — l . d Total. r A eq m u o ir u e n d t . a E m x o c u es n s t i b ss a u n i k n . g p ce o n si t t s. against de- U. S. Board. pledged. Treasury. Amount. Per cent. 1921. Apr. 22 3,198,002 3,487,301 1,321,816 233,853 104,409 983,554 2,165,485 1,876,186 289,299 341,302 2,856,700 1,880,529 65.8 27 3,177,004 3,424,562 1,317,860 233,852 119,167 964,841 2,106,702 1,859,144 247,558 346,886 2,830,118 1,900,700 67.2 May 4 3,158,636 3,435,157 326,087 233,852 119,127 973,108 2,109,070 1,832,549 276,521 330,050 2,828,586 1,914,668 11 3,147,304 3,433,397 374,138 233,853 117,383 1,022,902 2,059,259 1,773,166 286,093 342,371 2,804,933 1,931,066 1 18 3,112,067 3,333,437 458,619 293,852 112,347 1,052,420 1,874,818 1,653,448 221,370 344,652 2,767,415 1,948,309 70.4 25 3,091,119 3,404,025 ,505,229 343,853 127,424 1,033,952 1.898,796 1,585,890 312,906 356,315 2,734,804 1,961,147 71.7 w June 1 3,080,993 3,409,391 477,665 343,852 126,000 1,007,813 1,931,726 1,603,328 328,398 329,694 2,751,299 1,966,689 71.5 o 8 3,073,599 3,369,346 ,460,358 345,093 116,727 998,538 1,908,988 1,613,241 295,747 362,876 2,710,723 1,985,274 73.2 15 3,030,050 3,241,365 ,550,817 345,093 121,141 1,084,583 1,690,548 1,479,233 211,315 355,615 2,674,435 1,940,394 72.6 22 3,002,066 3,330,805 , 598,128 345,093 128,760 1,124,275 1,732,677 1,403,938 328, 739 362,747 2,639,319 2,025,969 76.8 29 2,996,025 3,342,209 ,597,219 344,992 127,264 1,124,963 1,744,990 1,398,806 346,184 361,550 2,634,475 2,035,434 77.3 July 6 3,014,824 3,371,270 ,598,265 344,993 126,558 1,126,714 1,773,005 1,416,559 356,446 342,908 2,671,916 2,031,609 76.0 13 3,000,507 3,300,183 ,623,321 344,992 119,094 1,159,235 I 1,676,862 1,377,186 299,676 396,674 2,603,833 2,054,696 78.9 20 2,969,666 3,283,451 ,624,332 344,993 118,896 1,160,443 1,659,119 1,345,334 313,785 405,154 2,564,512 2,066,809 80.6 27 2,933,241 3,243,006 ,616,287 344,993 117,047 1,154,247, 1,626,719 1,316,954 309,765 395,624 2,537,617 j 2,091,949 82.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Aug. 3 • 2,917,123 3,223,275 1,615,482 344,992 •119,176 1,151,314 1,607,793 1,301,641 306,152 380,450 ! 2,536,673 2,107,070 i 83.1 10 | 2,900,323 3,169,402 1,640,626 344,992 | 107,104 1,188,530 1,528,776 1,259,697 269,079 379,539 I2,520,784 2,138,982 ! 84.9 17 ! 2,885,217 3,166,405 1,660,062 373,992 j125,550 1,160,520 1,506,343 1,225,155 281,188 381,575 i2,503,642 2,160,530 \ 86.3 2,854,623 3,136,656 1,646,109 371,992 | 109,417 1,164,700 1,490,547 1,208,514 282,033 368,709 | 2,485,914 2,180,384 i 87.7 2,849,730 3,174,414 1,694,523 400,992 i113,709 1,179,822 1,479,891 1,155,207 324,684 368,264 2,481,466 2,196,157 ! 88.5 2,852,311 3,184,382 1,677,195 402,738 113,842 1,160,615 1,507,187 1,175,116 332,071 334,748 2,517,563 2,201,928 | 87.5 2,862,670 3,122,216 1,694,301 402,737 113,195 1,178,369 1,427,915 1,168,369 259,546 371,019 2,491,651 2,237,460 | 89.8 2,837,667 3,154,254 1,777,529 447,337 117,912 1,212,280 1,376,725 1,060,138 316,587 362,991 2,474,676 2,271,034 : 91.8 2,817,678 3,157,798 1,759,065 447,337 110,566 1,201,162 1,398,733 1,058,613 340,120 360,482 2,457,196 2,277,594 | 92.7 2,795,943 3,159,724 1,756,582 450,163 120,199 | 1,186,220 1,403,142 1,039,361 363,781 313,630 2,482,313 2,289,225 92.2 2,780,189 3,150,244 1,732,113 450.162 114,167 1,167,784 1,418,131 1,048,076 370,055 303,878 2,476,311 2,273,231 | 91.8 2,769,083 3,055,934 1,711,331 450.163 126,046 1,135,122 1,344,603 1,057,752 286,851 328,221 2,440,862 2,320,653 j 95.1 2,725,315 3,061,589 1,729,790 450.162 110,418 1,169,210 1,331,799 995,525 336,274 316,536 2,408,779 2,328,653 ! 96.7 2,715,606 3,007,724 1,708,670 450.164 120,908 1,137,598 1,299,054 1,006,936 292,118 307,484 2,408,122 2,335,853 97.0 2,708,845 3,002,317 1,723,523 450,163 117,952 1,155,408 1,278,794 985,322 293,472 288,014 2,420,831 2,356,380 97.3 2,716,943 3,027,472 1,810,060 450.163 122,569 1,237,328 1,217,412 906,883 310,529 318,719 2,398,224 2,361,266 98.5 2,704,639 3,041,334 1,811,316 450,163 112,822 1,248,331 1,230,018 893,323 336,695 314,723 2,389,916 2,373,251 99.3 2,698,682 2,987,403 1,779,605 450,163 121,502 1,207,940 1,207,798 919,077 .288,721 332,676 2,366,006 2,379,152 100.6 Dec. 7.. 2,691,689 2,988,325 1,787,724 450,162 112,651 1,224,911 1,200,601 296,636 318,334 2,373,355 2,389,234 100.7 14. 2,726,175 3,015,165 1,813,422 450,063 116,301 1,247,058 1,201,743 912,753 | 288,990 332,398 2,393,777 2,391,619 99.9 21.. 2,772,812 3,135,782 1,833,108 349,012 123,471 1,360,625 1,302,674 939,704 362,970 325,252 2,447,560 2,368,397 96.8 O H 28.. 2,796,540 3,092,876 1,846,369 349,013 115,832 1,381,524 1,246,507 950,171 296,336 353,043 2,443,497 2,374,615 97.2 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 SUBTREAS- URIES SINCE ORGANIZATION OF BANKS, AND ON HAND IN WASHINGTON ON DEC. 31, 1921. 00 [In thousands of dollars.] PRINTED SINCE ORGANIZATION OF BANKS. Federal Reserve Bank. Total. Fivo,s. Tens. Twenties. Fifties. Hundreds. Fi d v r e e d h s u . n- s T a h n o d u s - . Fi s v a e n t d h s o . u- Te s n a n t d h s o . un Boston 091,400 204,640 387,960 316,400 51,600 48,400 8,800 39,600 14,000 20,000 New York.... 444,360 689,720 1,168,160 880,480 190,000 261,600 49,600 122,800 26,0Q0 56,000 Philadelphia.. 071,000 206,160 294,080 356,960 92,200 60,000 12,000 15,600 10,000 24,000 Cleveland 964,560 145,040 217,520 379,200 149,800 48,800 5,800 6,400 4,000 8,000 Richmond.... 708,640 138,640 183,560 217,040 76,200 48,800 11,600 16,800 8,000 8,000 Atlanta 661,920 137,360 177,320 222,240 35,400 42,000 14,800 26,800 2,000 4,000 i Chicago 002,880 378,640 578,320 744,320 145,000 88,000 19,000 23,600 14,000 12,000 St. Louis 625,600 170,840 189,280 188,080 25,000 18,800 7,200 8,400 6,000 12,000 Minneapolis... 310,360 91,720 105,080 91,360 5,000 8,000 1,600 7,600 0 0 Kansas City.. 416,920 122,080 117,120 129,520 i 15,000 16,000 6,000 11,200 0 0 Dallas 314,620 72,660 99,520 94,640 I 10,400 10,400 3,000 6,000 6,000 12,000 San Francisco. 1,003,580 213,420 211,880 387,280 | 48,600 71,600 12,000 18,800 12,000 28,000 1 Total... 12,615,840 2,570,920 3,729,800 4,007,520 844,200 722,400 151,400 303,600 102,000 184,000 SHIPPED SINCE ORGANIZATION OF BANKS. I Boston 897,400 180,000 342,000 276,800 32,200 36,000 2,800 15,600 4,000 8,000 New York... 2,964,800 600,840 1,047,600 786,560 169,800 225,600 29,600 82,800 6,000 16,000 Philadelphia. 881,360 184,760 256,360 319,440 73,200 40,000 2,000 5,600 0 0 Cleveland... 823,020 119,820 182,000 338,000 129,800 38,800 3,800 4,800 2,000 4,000 Richmond... 518,580 114,060 140,680 173,840 46,400 29,200 1,600 6,800 2,000 4,000 Atlanta 508,000 110,440 139,520 173,040 25,400 32,000 10,800 16,800 0 0 Chicago 1,537,320 288,760 454,240 589,520 115,000 63,200 9,000 13,600 4,000 0 St. Louis.... 476,640 131,160 149,320 150,560 20,000 12,000 3,200 4,400 2,000 4,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minneapolis 216,460 67,860 74,000 64,000 3,000 5,200 800 . 1,600 0 0 Kansas City 322,260 100,140 92,440 107,280 9,400 10,800 1,000 1,200 0 0 Dallas 215,500 53,180 72,880 72,640 7,200 6,800 800 2,000 0 0 San Francisco 837,880 172,680 180,320 327,280 42,600 64,000 7,400 15,600 12,000 16,000 Total 10,199,220 2,123,700 3,131,360 3,378,960 674,000 563,600 72,800 170,800 32,000 52,000 ON HAND IN WASHINGTON ON DEC. 31, 1921. Boston 194,000 24,640 45,960 39,600 19,400 12,400 6,000 24,000 10,000 12,000 New York 479,560 88,880 120,560 93,920 20,200 36,000 20,000 40,000 20,000 40,000 Philadelphia , 189,640 21,400 37,720 37,520 19,000 20,000 10,000 10,000 10,000 24,000 Cleveland 141,540 25,220 35,520 41,200 20,000 10,000 2,000 1,600 2,000 4,000 Richmond 190,060 24,580 42,880 43,200 29,800 19,600 10,000 10,000 6,000 4,000 Atlanta 153,920 26,920 37,800 49,200 10,000 10,000 4,000 10,000 2,000 4,000 t > r1 Chicago 465,560 89,880 124,080 154,800 30,000 24,800 10,000 10,000 10,000 12,000 St. Louis , 148,960 39,680 39,960 37,520 5,000 6,800 4,000 4,000 | 4,000 8,000 Minneapolis 93,900 23,860 31,080 27,360 2,000 2,800 800 6,000 j 0 0 Kansas City 94,660 21,940 24,680 22,240 5,600 5,200 5,000 10,000 | 0 0 % DaUas 99,120 19,480 26,640 22,000 3,200 3,600 2,200 4,000 6,000 12,000 San Francisco 165,700 40,740 31,560 60,000 6,000 7,600 4,600 3,200 0 12,000 Total 2,416,620 447,220 598,440 628,560 170,200 158,800 78,600 132,800 70,000 132,000 RECAPITULATION. Total printed 12,615,840 2,570,920 3,729,800 4,007,520 844,200 722,400 151,400 303,600 102,000 184,000 Total shipped....... 10,199,220 2,123,700 3,131,360 3,378,960 674,000 563,600 72,800 170,800 32,000 52,000 Total on hand 2,416,620 447,220 598,440 628,560 170,200 158,800 78,600 132,800 70,000 132,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 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, 1921. o [In thousands of dollars.] ISSUED SINCE ORGANIZATION OF BANKS. Federal Reserve Bank. Total. Fives. Tens. Twenties. Fifties. Hundreds. j hun F d iv r e e - ds. s T a h n o d u s - . | I tho F u i s v a e n ds, tho T u e s n ands O Boston 868,825 177,167 340,166 259,888 33,202 38,002 : 2,100 ! 15,400 900 i 2, 000 H New York.... !, 855,923 586,340 1,012,928 765,838 166,803 216,614 24,600 j 72,800 2,000 i 8,000 Philadelphia.. 865,508 175,733 253,755 325,980 68,290 35,150 | 1,400 I 5,200 0 O Cleveland 838,885 121,185 187,370 346,680 136,500 39,850 ; 2,600 | 3,700 400 I 600 Richmond 703,752 151,844 193,727 238,270 64,487 43,522 | 932 I 9,250 550 ! 1,170 Atlanta 739,907 145,873 198,966 274,291 31,822 40,975 17,072 | 30,908 0 j 0 Chicago .,467,591 277,930 456,580 565,881 95,800 48,800 7,000 ' 11,600 4,000 | 0 St. Louis 494,328 133,633 156,503 162,552 21,650 13,600 1,700 | 3,340 500 I 850 Minneapolis... 241,957 71,927 84,200 74,335 3,480 5,425 500 2,090 o i 0 Kansas City... 330,52S 99,054 94,330 114,074 12,050 9,120 800 I 1,100 o I 0 DaUas 269,877 57,835 93,031 94,968 9,806 11,800 458 i 1,979 0 0 San Francisco.. 861,720 170,920 174,680 334,140 43,400 67,900 6,600 ! 17,300 19,550 27,230 j Total.. 2,169,441 | 3,246,236 3,556,897 687,290 | 570,758 65,762 \ 174,667 27,900 39,850 RETIRED SINCE ORGANIZATION OF BANKS. f Boston 648,668 149,564 266,089 176,956 21,791 19,968 858 | 11,817 545 | 1,080 New York... 2,039,175 474,894 763,650 540,520 106,018 122,886 6580 ! 24,032 35 | 560 Philadelphia. 642,638 141,151 197,240 250,365 34,901 17,161 324 : 1,496 0 ! 0 Cleveland 599,021 94,630 144,711 249,631 89,052 20,354 272 | 351 i 10 10 | Richmond... 586,295 130,243 166,743 197,358 50,495 33,354 793 5,614 1,150 545 | Atlanta 611,263 122,892 169,617 230,869 21,968 26,171 13,907 25,839 0 0 j Chicago 1,020,373 215,096 337,962 387,373 60,179 17,393 941 | 1,419 0 10 l St. Louis 380,225 109,854 126,056 120.411 14,066 8,194 345 ! 759 390 150 ! Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minneapolis 181,480 57,099 66,684 51,457 2,097 2,750 165 1,228 0 0 Kansas City.... 255,090 83,354 77,052 81,665 9,029 3,736 130 124 0 0 Dallas 230,339 48,837 85,160 78,086 7,553 8,998 274 1,431 0 0 San Francisco.. 562,443 130,707 126,813 j 221,338 24,450 30,721 2,097 5,502 7,565 13,250 Total 7,757,010 1,758,321 2,527,777 2,586,029 441,599 311,686 26,686 79,612 8,860 16,440 OUTSTANDING ON DEC. 31,1921. 1 Boston 220,157 27,603 74,077 82,932 11,411 18,034 - 1,242 3,583 355 920 New York 816,748 111,446 249,278 225,318 60,785 93,728 18,020 48,768 1,965 7,440 ^ Philadelphia •... 222,870 34,582 56,515 75,615 33,389 17,989 1,076 3,704 0 0 H Cleveland 239,864 26,555 42,659 97,049 47,448 19,496 2,328 3,349 390 590 fel Richmond 117,457 21,601 26,984 40,912 13,992 10,168 139 3,636 5 Atlanta 128,644 22,981 29,349 43,422 9,854 14,804 3,165 5,069 0 0 F Chicago 447,218 62,834 118,618 ' 178,508 35,621 31,407 6,059 10,181 3,990 0 W St. Louis 114,103 23,779 30,447 42,141 7,584 5,406 1,355 2,581 350 460 g Minneapolis 60,477 14,828 17,516 22,878 1,383 2,675 335 862 0 o te Kansas City— 75,438 15,700 17,278 32,409 3,021 5,384 670 976 0 o <j Dallas 39,538 8,998 7,871 16,882 2,253 2,802 184 548 0 o H San Francisco.. 299,277 40,213 47,867 j 112,802 18,950 37,179 4,503 11,798 .11,985 13,980 tz{ Total. 2,781,791 411,120 718,459 i 970,868 245,691 259,072 39,076 95,055 19,040 23,410 jj 1 RECAPITULATION. Total issued.. 10,538,801 2,169,441 3,246,236 3,556,897 687,290 570,758 65,762 174,667 27,900 39,850 Total retired. 7,757,010 1,758,321 2,527,777 2,586,029 441,599 311,686 26,686 79,612 16,440 Total outstanding.. 2,781,791 411,120 718,459 970,868 245,691 259,072 39,076 95,055 19,040 23,410 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 6.—FEDERAL RESERVE NOTES ISSUED AND RETIRED BY EACH FEDERAL RESERVE AGENT, BY MONTHS DURING 1921. to [In thousands of dollars.] to Total. Boston. New York. Philadelphia. Cleveland. Richmond. Outstanding at be- Month. ginning of eachmonth in 1921. Issued. Retired. Issued. Retired. Issued. Retired. Issued. Retired. Issued. Retired. ! Issued. Retired. s January 3,735,731 78,060 329,477 10,600 32,155 13,600 48,570 7,990 27,709 2,300 42,468 13,370 17,753 February 3 ; 484,314 128,469 267,660 | 22,750 23,929 20,720 104, 722 19,700 19, 519 9,380 19, 239 11, 890 12,533 March 3,345,123 135,972 215,524 12,580 20,177 26,960 25,240 12, 800 19,733 7,510 20,447 18,340 25,681 April 3,265,571 156,195 263,562 13,120 14,570 21,420 61,653 13,120 25,044 9,360 19,158 14,820 21,347 May 3,158,204 202,818 277,341 | 30,560 27,816 37,100 59,358 16,200 24,435 7,770 24,395 8,960 18,996 June 3,083,681 162,605 245,856 I 21,300 26, 423 29,600 55,459 20,000 23,026 8,100 19,424 10,720 17,175 July 3,000,430 181,200 261,035 i 22,900 27,866 41,960 70,985 20,000 18,789 9,700 21,603 10,920 16,116 August 2,920,595 171, 970 242,835 | 15,900 20,510 38,140 (Hi, 091 20, 800 21,220 11,580 21,517 9,120 15,259 September.. 2, 849,730 215,515 240,971 ! 14,010 20,996 71,600 74,961 8, 400 19, 890 8,100 17,899 13,620 11,848 October 2,824,274 150,595 261,912 12,000 22,426 54,540 87,924 7,400 17,631 10,980 20,239 12,580 13,276 November.. 2,712,957 185,818 200,093 4,480 17,346 83,970 54, 200 14,000 17,240 13,780 17,843 12,840 12,345 December.. 2,698,682 280,420 197,311 | 10,700 18,083 99,200 49, 253 23,000 17,603 22, 880 16,037 16,640 15,068 Total: 1921. 2,049,637 3,003,577 I 190,900 272, 297 538, 810 758,416 183,410 i 251,839 121,440 I 260,269 153,820 197,397 1920. 2,215, 254 1,775,312 | 225,680 178,844 373,080 276,442 177,420 i 134,017 249,000 ! 154,109 179,004 169,675 1919. 2,482,515 2,046,570 I 225,500 139J68 753,120 632,420 195,660 189,635 163,565 146,283 162,777 162,070 o > Outstanding: Jan. 1, 1922. 2,781,791 220,157 816,748 222.870 239,864 117,457 Jan. 1,1921.. 3, 735,731 301,554 1,036,354 291, 299 378,693 161,034 Jan. 1,1920. 3, 295,789 254,718 939, 716 247,896 283,802 151,705 Jan. 1, 1919. 2,859,844 168,986 819,016 241.871 266,520 150,998 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Atlanta. Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Month. Issued. Retired. Issued. Retired, Issued. Retired. Issued. Retired. Issued. Retired. Issued. Retired. Issued. Retired January 11,090 16,582 81,980 3,100 14,315 1,320 7,722 7,563 490 9,192 7,220 23,468 February 6,241 10,075 16,440 41,936 9 060 8,653 1,925 3,643 3,330 6,031 353 6,496 6,680 10, 884 March 7,045 19,330 27,380 40,135 4,820 10,199 1,975 4,984 2,360 7,317 2,102 8,155 12,100 14,126 April 35,040 29,147 26,920 42,892 4,120 10,379 2,705 5,417 2,660 7,303 2,010 7,739 10,900 18,913 May 25,274 23,713 29,420 38,219 5,600 9,864 2,165 5,802 1,720 8,098 2,849 8,213 35,200 28,432 June 7,590 15,427 27,100 33,087 5,100 10,203 2,580 5,870 1,600 7,521 1,755 5,906 27,160 26,335 July 9,160 19,792 25,800 35,333 6,980 8,496 3,230 5,486 3,600 6,684 2,370 5,695 24,580 24,190 August 4,570 17,065 33,920 32,105 7,640 8,530 4,320 4,778 5,580 5,854 2,020 4,980 18,380 24,926 September 18,530 12,906 23,620 34,888 14,300 9,273 5,785 4,195 6,400 6,658 6,470 4,303 24,680 23,154 October 5,215 14,062 20,040 41,471 6,660 8,388 5,670 4,428 550 5,468 2,060 3,814 12,900 22,785 November 5,265 12,037 18,720 28,833 5,500 8,665 2,670 4,010 4,430 5,373 663 3,271 19,500 18,930 December 13,920 9,920 37,640 30,120 2,080 9,283 4,920 4,500 5,547 2,620 3,214 42,320 19,344 Total: 1921 148,940 200,056 293,980 480,999 74,960 116,248 39,265 60,174 36, 730 79,417 25,762 70,978 241,620 255,487 1920 196,035 176,383 345,330 246,552 106,470 115,798 39,450 46,507 72,570 65,000 69,245 63,135 181,970 148,850 1919 183, 598 147,110 324,320 239,799 134,025 98,426 39,990 50,272 57,900 67,662 55,730 37,581 186,330 135,544 Outstanding: Jan. 1, 1922. 128,644 447,218 114,103 60,477 75,438 39,538 299, 277 Jan. 1,1921. 179,760 634,237 155,391 81,386 118,125 84,754 313,144 Jan. 1,1920. 160,108 535,459 164,719 88,443 110,555 78,644 280,024 Jan. 1, 1919. 123,620 450,938 129,120 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 FOR DESTRUCTION BY COMPTROLLER OF THE CURRENCY FROM ORGANIZATION OF BANKS TO DEC. 31, 1921. to [In thousands of dollars.! Five Five Ten Federal Reserve Bank. Total. Fives. Tens. Twenties. Fifties. Hundreds. hundreds. Thousands.thousands. thousands. Boston 576,*86 136,251 244,771 159,080 15,949 14,734 557 4,919 80 New York [,820,172 414,410 716,466 480,239 96,690 89,433 6,530 15,809 560 Philadelphia 607,196 134,966 187,225 231,788 34,665 16,740 323 1,489 0 Cleveland 547,352 90,438 135,815 235,720 72,581 12,165 262 351 10 Richmond 375,369 90,511 109,919 129,613 30,327 13,392 112 1,470 20 i Atlanta 307,352 78,676 100,418 116,110 6,962 4,634 149 403 0 Chicago 937,381 205,530 311,623 340,473 60,075 17,349 923 1,398 0 St. Louis 335,608 101,906 114,902 104,439 9,759 3,772 245 415 170 Minneapolis 146,613 50,498 54,210 38,797 1,293 1,651 50 114 0 Kansas City 224,820 79,279 69,770 69,199 3,083 3,235 130 124 0 Dallas 155,689 41,310 55,261 51,966 4,000 2,765 95 292 0 San Francisco 496,876 124,599 121,264 203,440 19,364 23,873 1,298 3,003 20 Total received i, 530,814 1,548,374 2,221,644 2,160,864 354,748 203,743 10,674 29,787 120 860 Total destroyed... 1, 509,339 1,545,196 2,215,308 2,153,150 352,666 202,411 10,405 29,223 120 860 Balance on hand. 21,475 3,178 6,336 7,714 2,082 1,332 564 NOTE.—During 1921 burned, badly mutilated, and fractional parts of Federal Reserve notes amounting to $41,870 have been identified and valued and the bank of issue deter- o w mined. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 8.—FEDERAL RESERVE NOTES OP EACH DENOMINATION ISSUED AND RETIRED BY FEDERAL RESERVE AGENTS DURING 1921 AND 1920, AND AMOUNTS OUTSTANDING DEC. 31, 1921, 1920, AND 1919. [In thousands of dollars.] 1921 1920 Outstanding De<•.31. Denomination. Issued. Retired. Issued. Retired. 1921 1920 1919 $5 473,930 608,182 431,450 401,856 411,120 545,372 515,778 $10 654,842 907,888 568,800 566,580 718,459 971,505 969,285 $20 ,.. 661,485 1,099,340 779,060 590,996 970,868 1,408,723 1,220,659 $50 103,069 198,417 184,240 101,432 245,691 341,039 258,231 $100 90,113 125,322 120,755 61,606 259,072 294,281 235,132 fcc $500 . . 15,791 1«, 873 27,214 8,211 39,076 40,158 21,155 1 $1,000 31,807 47,015 78,905 26,976 95,055 110,263 58,334 $5,000 8,200 120 10,700 6,335 19,040 10,960 6,595 $10,000 10,400 420 14,130 11,320 23,410 13,430 10,620 Total 2,049,637 - 3,003,577 2,215,254 1,775,312 2,781,791 3,735,731 3,295,789 < d to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. d. -FEDERAL RESERVE AGENTS' STATEMENTS OF FEDERAL RESERVE NOTE TRANSACTIONS FOR 1921. to [In thousands of dollars.] RECEIVED BY FEDERAL RESERVE AGENTS FROM COMPTROLLER OF THE CURRENCY. Federal Reserve Agent at— Total. Fives. Tens. Twenties. Fifties. Hundreds. hun F d iv re e ds. Thousands. thou F s iv a e nds. thou T s e a n nds. Boston 136,400 33,000 57,000 43,200 3,200 New York 544,720 110,040 23S,080 169,200 9,800 16,000 1,600 Philadelphia 200,780 52,500 62,360 53,520 24,800 6,400 400 800 Cleveland 94,800 25,800 26,160 37,440 2,800 2,000 200 400 Richmond 107,900 28,500 27,000 36,400 7,200 5,200 3,600 Atlanta 89,320 26,400 20,040 13,Q8O 7,200 10,000 4,000 8,000 Chicago 258,860 74,940 66,000 93,920 16,000 6,400 1,200 400 St. Louis 71,640 26,320 20,480 19,840 1,600 800 1,400 1,200 Minneapolis . 28,340 12,660 10,120 5,360 200 Kansas City . . 39,220 12,660 10,920 15,040 200 400 Dallas . . 18,540 8,540 3,920 6,080 San Francisco 230,960 52,320 50,280 88,560 7,800 14,800 400 2,800 6,000 8,000 Total - -. 1,821,480 463,680 592,360 582,240 77,400 $5,200 9,400 17,200 6,000 8,000 RETURNED BY FEDERAL RESERVE AGENTS TO COMPTROLLER OF THE CURRENCY FOR DESTRUCTION. Boston 239,837 48,174 92,628 80,936 7,931 7,544 426 2,128 30 40 H New York 602,418 92,543 234,345 192,101 34,363 34,423 4,712 9,781 20 130 Philadelphia. 244,388 51,955 66,290 95,274 21,577 8,170 244 878 Cleveland.... 229,408 35,369 49,939 102,350 34,527 6,731 215 262 5 10 Richmond... 151,937 36,257 39,211 54,669 13,459 7,036 80 1,210 5 10 Atlanta 129,385 31,056 37,472 53,890 3,752 2,731 143 341 Chicago 416,999 83,660 131,742 157,624 31,963 10,063 774 1,163 10 St. Louis 110,648 33,856 34,700 35,755 4,073 1,688 154 242 180 Minneapolis.. 49,749 14,540 17,492 16,218 577 800 39 83 Kansas City.. 77,727 23,055 22,762 28,435 1,509 1,747 110 109 Dallas 57,761 14,395 18,316 21,340 1,939 1,590 74! 107 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

San Francisco.. 245,627 54,167 53,684 103,802 12,638 17,175 1,240 1 2,891 10 | 20 Total 2,555,884 519,027 798,581 942,394 168,308 99,698 8,211 19,195 80 I ISSUED BY FEDERAL RESERVE AGENTS TO FEDERAL RESERVE BANKS. Boston 190,900 42,160 73,160 58,880 5,200 10,400 700 400 New Ybrk 538,810 108,450 235,320 161,640 12,800 19,000 1,600 Philadelphia 183,410 45,550 57,940 49,120 23,000 5,600 600 1,600 Cleveland 121 440 28,000 31 520 45,920 9,700 4,400 800 1,100 Richmond 153,820 40,660 38,580 48,530 12,200 9,300 50 4,500 Atlanta . 148,940 26,590 31,582 46,495 8,134 10,928 8,153 17,058 Chicago 293 980 71 820 92 080 103 080 17 200 8,400 1,000 400 St. Louis 74,960 25,100 22,080 21,880 2,400 1,200 600 1,100 200 400 Minneapolis 39,265 13,860 12,310 11,100 525 925 160 385 1 Kansas City 36,730 12,470 9,240 13,720 350 550 100 300 Dallas 25,762 9,130 4,830 11,040 360 210 28 164 San Francisco 241,620 50,140 4^200 90,080 11,200 19,200 2,000 4,800 8,000 10,000 ft ui Total 2,049,637 47? 930 654,842 661,485 103,069 90,113 15,791 31,807 8,200 10,400 ft RETURNED TO FEDERAL RESERVI] AGENTS BY OR FOR THE ,ACCOUNT OF FEDERAL RESERVE BANKS. 3 Boston 272,297 56,874 104,628 89,496 9,531 8,744 426 2,528 30 40 o New York 758,416 142,543 274,344 240,101 39,362 39,423 4,712 17,781 20 130 H ft Philadelphia.. 251,839 53,705 68,791 98,474 21,577 8,170 244 878 in Cleveland 260,269 37,769 53,879 109,871 46,027 12,231 215 262 5 10 Richmond 197,397 48,827 52,450 66,419 17,409 9,936 161 2,110 45 40 Atlanta 200 056 34 351 44 529 74,355 8,763 11 775 8,451 17,832 Chicago 480,999 89,660 151,742 195,624 31,963 10,064 773 1,163 10 St. Louis 116,248 34,056 36,300 38,755 4,473 2,088 154 242 180 Minneapolis 60,174 15,830 19,952 21,148 992 1,390 154 708 Kansas City - 79,417 23 345 23 322 29,275 1,509 1,747 110 109 Dallas 70,978 15 875 22,947 26,660 2,573 2,179 233 511 San Francisco... 255,487 55,347 55,004 109,162 14,238 17,575 1,240 2,891 10 20 Total 3,003,577 608,182 907,888 1,099,340 198,417 125,322 16,873 47,015 120 420 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 9.—FEDERAL RESERVE AGENTS' STATEMENTS OP FEDERAL RESERVE NOTE TRANSACTIONS FOR 1921—Continued. fin thousands of dollars.] 00 SUMMARY. Total. Fives. Tens. Twenties. Fifties. Hundreds. hun F d iv re e ds. Thousands. thou F s iv an e ds. thou T s e a n nds. Received from comptroller.. 1,821,480 463,680 592,360 582,240 77,400 65,200 9,400 17,200 6,000 8,000 Returned to comptroller 2,555,884 519,027 798,581 942,394 168,308 99,698 8,211 19,195 80 390 Excess receipts 1 189 5,920 7,610 Excess returns 734,404 55,347 206,221 360,154 90,908 34,498 1,995 Issued to banks 2,049,637 473,930 654,842 661,485 103,069 90,113 15,791 31,807 8,200 10,400 Returned by banks 3,003,577 608,182 907,888 1,099,340 198,417 125,322 16,873 47,015 120 420 Excess issues .... 8,080 9,980 Excess returns 953,940 134,252 253,046 437,855 95,348 35,209 1,082 15,208 Outstanding at beginning of year 3,735, 731 545,372 971,505 1,408,723 341,039 294,281 40,158 110,263 10,960 13,430 Outstanding at end of year 2,781,791 411,120 718,459 970,868 245,691 259,072 39,076 95,055 19,040 23,410 g w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 10.—FEDERAL RESERVE AGENTS' ACCOUNTS AT CLOSE OF BUSINESS, DEC. 31, 1921. [In thousands of dollars.] San Total. Boston. Y N o e r w k. de P l h p i h la i - a. C la le n v d e . - mind. Atlanta. Chicago. Louis. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F ci r s a c n o - . RESOURCES. Federal Reserve notes on hand 857,725 100,140 323,910 50,400 35,300 25,119 71,501 152,040 26,060 9,390 8,000 20,125 35,740 Federal Reserve notes outstanding (issued to bank—net) 2,781,791 220,157 816, 748 222,870 239,864 117,457 128,644 447,218 114,103 60,477 75,438 39,538 299,277 Collateral security for Federal Reserve notes outstanding: Gold and gold certificates 349,013 5,600 296,925 18,375 2,400 5,960 13,052 6,701 Gold redemption fund 128,774 19,310 35,079 14,013 13,952 3,762 2,825 14,519 3,098 1,604 1,682 2,158 16,772 Gold fund—Federal Reserve Board 1,394,883 135,000 321,000 130,389 145,000 34,295 ; 40,000 297,644 57,100 2,200 26,360 2,234 203,661 Eligible paper- Amount required 909,121 60,247 163, 744 78,468 62,537 79,400 i 83,419 135,055 47,945 43,621 47,396 28,445 78,844 Excess amount held 346,619 12,073 91,152 22,967 57,079 17,843 ; 10,738 58,954 15,295 5,753 23,887 22,294 8,584 Total 6,767,926 552,527 2,048,558 519,107 572,107 277,876 i 339,527 1,105,430 209,561 136,097 182,703 121,495 642.. 878 o (-5 LIABILITIES. .72 Federal Reserve notes received from Comptroller of the Currency—net amount (liability to comptroller)... 3,639, 516 320, 297 1,140,658 273, 270 275,164 142,576 I 200,145 599, 258 140,163 69,867 83,438 59, 663 335,017 Collateral received from Federal Reserve Bank (liability to bank): Gold 1,872,670 159,910 653,004 144,402 177,327 38,057 1 45,225 312,163 66,158 16,856 28,042 11,093 220,433 E ligible paper 1,255,740 72,320 254,896 101,435 119,616 97,243 94,157 194,009 63,240 49,374 71,283 50,739 87,428 Total 6,767,926 552,527 2,048,558 519,107 572,107 277,876 339,527 1,105,430 269,561 136,097 182,763 121,495 642, 878 to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 11.—INTERDISTRICT MOVEMENT or FEDERAL RESERVE NOTES DURING 1921, CO [In thousands of dollars.] O Total. Boston. New York. Philadelphia, Cleveland. Richmond. Received from or returned to Federal Reserve Bank of— Received. Returned Received. Returned. Received. Returned, Received. Returned.! Received. Returned. Received. Returned. Boston 76,131 115,855 47,671 87,028 6,828 6,646 3,828 3,738 4,618 3,687 New York 432,922 205,360 86,003 47,364 87,074 49,194 65,094 22,126 33;706 15,826 Philadelphia... 99,932 140,957 6,703 6,830 49,449 87,222 15,186 17,815 14,*262 13,198 Cleveland 114,417 140,049 3,934 3,783 23,622 63,287 18,924 15,123 16,574 8,775 Richmond 60,634 86,222 3,721 4,625 15,914 33,934 13,201 14,269 8,828 15,413 Atlanta 69,635 88,142 3,081 2,616 19,044 47,929 3,528 3,067 6,740 4,340 7,665 8,805 Chicago 126,174 203,243 6,830 5,551 23,694 66,469 6,012 6,137 25,198 30,175 4,496 4,426 St. Louis 82,261 58,543 1,300 810 6,097 8,133 1,875 1,078 8,735 5,756 2,135 1,370 Minneapolis 32,686 32,587 587 522 2,408 5,777 532 422 1,442 1,314 381 300 Kansas City 47,568 50,679 858 900 3,756 7,004 962 1,149 2,480 2,522 823 1,774 Dallas 37,492 34,837 751 1,017 5,920 6,260 958 968 1,483 1,545 1,004 1,404 San Francisco.. 56,212 55,683 2,843 1,652 11,561 19,463 2,309 1,278 3,964 1,939 1,696 755 Total: 1921 | 1,236,064 1,212,157 116,611 75,670 209,136 432,506 142,203 99,331 142,978 106,683 87,360 60,320 1920 | 1,176,551 1,176,154 98,292 89,584 231,891 358,604 121,209 114,442 130,566 72,179 71,453 69,994 1919 1 961,123 988,334 62,719 90,291 235,408 282,083 78,300 94,525 96,675 65,791 70,806 72,911 > Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Atlanta. Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Received from or returned to Federal Reserve Bank of— Received. Returned Received. Returned.Received. Returned.Received. Returned.Received. Returned.Received. Returned.Received. Returned. i I Boston 2,627 3,054 5,564 5,600 850 1,244 515 571 908 825 1,057 | 688 1,665 2,774 New York... 47,839 18,817 66,613 23,495 8,064 5,991 5,775 2,374 6,856 3,585 6,248 5,502 19,650 11,086 Philadelphia. 3,095 3,496 6,203 5,991 1,148 1,805 420 523 1,166 923 989 I 891 1,311 2,263 Cleveland 4,684 6,675 32,206 25,010 6,696 8,468 1,369 1,429 2,650 2,371 1,639 ! 1,289 2,119 3,839 Richmond... 8,860 7,612 4,442 4,493 1,426 2,045 295 380 1,788 805 1,401 ] 957 758 1,689 Atlanta 8,552 5,099 10,976 6,998 566 436 1,826 1,421 5,964 5,085 1,693 2,346 I Chicago 5,110 8,473 17 470 34 666 14 420 17,313 10,963 13,510 2,901 • 3,693 9,080 12,830 St. Louis 6,784 11,165 36,618 15 871 1,359 993 9,669 7,108 5,081 I 3,809 2,608 2,450 Minneapolis.. 444 568 17 328 14 684 1 023 1 337 2 799 2 782 399 I 446 5,343 4,435 Kansas City.. 1,476 1,820 14 135 10 919 7 519 9 536 2 892 2 803 5 652 ! 5,674 7,015 6,578 Dallas... 5,250 5,995 4,220 2 840 4 004 5 004 501 402 6,349 5,390 7,052 4,012 San Francisco.. 2,357 1,677 13,608 9,012 2,550 2,534 4,567 5,411 6,790 6,672 3,967 5,290 Total: 1921 j 88,526 69,352 209,489 123,014 61,726 79,628 32,679 32,635 51,764 45,392 35,298 33,324 58,294 54,302 1920 | 69,715 63,337 197,571 139,230 59,594 95,670 42,785 29,274 56,643 51,465 44,205 32,783 52,627 59,592 1919 58,397 54,621 149,978 129,606 50,470 75,559 39,607 29,704 51,607 39,802 24,765 18,174 42,391 35,267 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK NOTES. CO to No. 12.—FEDERAL RESERVE BANK NOTES PRINTED, ISSUED AND REDEEMED BY COMPTROLLER OP THE CURRENCY SINCE ORGANIZATION CP BANKS, AND AMOUNTS OUTSTANDING AND ON HAND, DEC. 31, 1921. [In thousands of dollars.] PRINTED SINCE ORGANIZATION OF BANKS. Federal Reserve Bank. Total. Ones. Twos. Fives. Tens. Twenties. Fifties. o H Boston 64,856 39,600 23,056 2,200 0 0 0 New York 167,076 104,852 28,224 32,000 2,000 0 0 O Philadelphia 75,836 50,828 16,008 8,320 440 240 0 Cleveland 69,864 42,864 9,000 14,000 2,000 2,000 0 Richmond 40,008 28,380 7,328 3,500 400 400 0 Atlanta - 53,000 34,640 4,600 6,640 2,320 2,400 2;400 Chicago 105,488 64,432 19,056 16,600 3; S00 1,600 0 St. Louis 43,808 27,908 6,600 7,620 1,000 480 200 Minneapolis . - 27,556 16,064 3,352 5,460 2,680 0 0 Kansas Citv 63,120 24,816 5,304 24,360 5,040 3,600 0 Dallas 29,484 17,864 3,080 4,140 2,400 2,000 0 San Francisco 40,464 23,108 6,376 7,660 1,960 1,360 0 Total 780,560 475,356 131,984 132,500 24,040 14,080 2,600 w ION OF BANKS. o p Boston 64,696 39,600 22,896 2,200 0 0 | 0 New York 166,112 104,080 j 28,032 32,000 2,000 o ! 0 Philadelphia-. 72,468 49,692 | 15,776 7,000 0 0 i 0 Cleveland 63,404 42,864 ! 9,000 11,540 0 0 : 0 Richmond 32,620 27,404 i 5,216 0 0 0 : 0 Atlanta 46,864 34,012 4,312 6,620 1,120 800 ! 0 Chicago 101,536 60.584 18,952 16, 600 3,800 1,600 ! 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

St. Louis 40,980 25,080 6,600 7,620 1,000 480 200 Minneapolis 22,588 15,892 2,576 4,120 0 0 0 Kansas City 57,508 23,568 4,760 20,540 5,040 3,600 0 SH Dallas 24,816 15,796 2,240 2,380 2,400 2,000 0 to San Francisco 33,764 23,108 6,376 4,280 0 0 0 T* b Total 727,356 461,680 126,736 114,900 15,360 8,480 200 ON HAND IN WASHINGTON ON DEC. 31, 1921. Boston 160 0 160 0 0 0 0 New York 964 772 192 0 0 0 0 Philadelphia 3,368 1,136 232 1,320 440 240 0 Cleveland 6,460 0 0 2,460 2,000 2,000 0 Richmond .. . . 7,388 976 2,112 3,500 400 400 0 Atlanta 6,136 628 288 20 1,200 1,600 2,400 Chicago 3,952 3,848 104 0 0 0 0 St. Louis 2 828 2,828 0 0 0 0 0 tei Minneapolis 4,968 172 776 1,340 2,680 0 0 w Kansas City .... . 5,612 1,248 544 3,820 0 0 0 Dallas... 4,668 2,068 840 1,760 0 0 0 San Francisco 6,700 0 0 3,380 1,960 1,360 0 Total : 53,204 13,676 5,248 17,600 8,680 5,600 i 2,400 1 oo Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 12,—FEDERAL RESERVE BANK NOTES PRINTED, ISSUED AND REDEEMED BY COMPTROLLER OF THE CURRENCY SINCE ORGANIZATION OP CO BANKS, AND AMOUNTS OUTSTANDING AND ON HAND, DEC. 31, 1921—Continued. [In thousands of dollars.] REDEEMED SINCE ORGANIZATION OF BANKS. Federal Reserve Bank. Total. Ones. Twos. Fives. Tens. Twenties. Fifties. Boston 54,828 34,856 17,842 2,130 0 0 0 O New York 131,822 87,586 19,982 22,899 1,355 0 0 H Philadelphia.. 62,787 44,007 11,932 6,848 0 0 0 O Cleveland 53,971 36,334 7,791 9,846 0 0 0 Richmond 29,064 24,353 4,711 0 0 0 0 Atlanta 38,719 3Q,073 3,558 4,629 331 128 0 Chicago 89,630 54,617 15,152 15,296 3,335 1,230 0 St. Louis 36,167 22,045 5,722 7,027 939 359 75 1 Minneapolis... 18,250 12,647 2,211 3,392 0 i 0 0 Kansas City... 46,071 19,042 3,754 15,426 4,754 3,095 0 Dallas 21,870 14,322 1,974 1,961 1,999 I 1,614 0 San Francisco. 27,507 18,537 4,810 4,160 0 I 0 0 Total. 610,686 398,419 99,439 93,614 12,713 j 75 S I OUTSTANDING ON DEC. 31, 1921. w o Boston 9,868 4,744 5,054 70 0 0 0 New York 34,290 16,494 8,050 9,101 645 0 0 Philadelphia.. 9,681 5,685 3,844 152 0 0 0 Cleveland 9,433 6,530 1,209 1,694 0 0 0 Richmond 3,556 3,051 505 0 0 0 0 Atlanta 8,145 3,939 754 1,991 789 672 0 Chicago 11,906 5,967 3,800 1,304 465 370 0 St. Louis 4,813 3,035 878 593 61 121 125 Minneapolis.. 4,338 3,245 365 728 0 0 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Kansas City... 11,437 4,526 1,006 I 5,114 286 505 Dallas 2,946 1,474 266 j 419 401 386 San Francisco. 6,257 4.571 1,566 i 120 0 Total. 116,670 63,261 27,297 21,286 2,647 2,054 125 RECAPITULATION. Total printed 780,560 j 475,356 131,984 132,500 24,040 14,080 2,600 Total on hand Dec. 31, 1921. 53,204 | 13,676 5,248 17,600 8,680 5,600 2,400 Total issued 727,356 j 461,680 126,736 114,900 15,360 8,480 200 Total redeemed.. 610,686 | 398,419 99,439 93,614 12,713 6,426 75 Total outstanding Dec. 31, 1921. 116,670 j 63,261 27,297 21,286 2,647 2,054 125 % > CO en Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENCY RECEIPTS AND PAYMENTS. 00 No. 13.—CURRENCY (PAPER AND COIN) RECEIVED FROM AND PAID TO MEMBER AND NONMEMBER BANKS, BY MONTHS DURING 1921. [In thousands of dollars.] Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. Month. Receipts.! Payments.Receipts.! Payments.Receipts. Payments. Receipts.Payments. Receipts.Payments. Receipts. Receipts.Payments January I 69,343 39,151 235,184 ! 126,316 54,276 38,224 69,135 33,305 26,283 17,140 102,461 53,474 February I 46,585 49,680 154,249 | 156,214 45,448 51,453 47,319 40,655 17,039 21,462 67,543 62,971 o March 62,671 60,329 209,318 | 166,381 63,570 56,373 62,067 36,650 24,718 17,401 97,689 78,239 April 60,339 60,585 193,492 170,451 55,092 53,096 48,363 42,098 22,244 19,999 86,358 81,464 May 60,346 60,666 198,869 140,213 55,375 52,627 50,282 37,074 24,225 18,179 86,313 77,646 June i 64,888 58,695 225,183 171,337 59,933 ! 59,146 53,042 38,890 23,222 20,356 90,068 77,340 July 63,270 59,491 234,747 166,713 57,362 | 54,492 46, 537 34,938 20,166 18,615 | 83,918 74,877 August 63,915 60,342 222,150 | 169,864 62,821 I 55,517 43,574 36,516 20,899 17,826 I 78, 264 78,180 September. 61,538 59,197 206,648 j 173,751 60,780 57,676 43,295 38,233 19,019 24,075 ! 84,337 78,079 October 65,192 57,097 198,313 | 166,020 57,037 ! 44,142 43,053 35,049 20,349 22,089 j 85,937 79,709 November. 65,027 58,028 208,487 | 179,251 55,187 | 57,168 43,738 39,406 21,522 20,778 | 85,899 i 82,188 December.. 73,409 79,106 229,011 | 228,728 64,360 ! 66,625 53,162 48,938 25,119 26,859 ; 99,128 106,893 Total: 1921. 756,523 702,367 2,515,651 2,015,239 691,241 : 646,539 603,507 461,752 264,805 244,779 ! 340,735 1,047,915 931,060 1920. 698,979 688,624 2,236,142 2,093,745 570,094 ! 643,266 579,048 657,982 194,500 243,979 j 335,485 971,684 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 I 219,365 648,102 | 614,188 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

St. Louis. Minneapolis. Kansas City. Dallas. an Francisco. Total, 1921. Total, 1920. Total, 1919. Month. ce R ip e t - s. Pay- ce R ip e t - s. m P e a n y t - s. ce R ip e t - s. Pay- ce R ip e t - s. Pay- ce R ip e t - s . m Pa en y t - s. ce R ip e t - s. m P e a n y t - s. c R ei e p - ts. Pay- ceipts. Pay- January 44,756 25,888 12,854 4,656 19,814 9,571 20,400 7,773 56,795 38,312 746,527 420,006 582,665 367,344 520,446 195,149 February 33,266 28,251 8,916 6,264 14,749 10,907 16,106 6,954 39,090 34,042 516,914 486,322 358,592 534,140 279,180 260,334 March 41,421 26,770 10,968 7,907 20,112 10,839 19,757 8,630 44,994 33,890 689,808 520,714 489,833 525,083 295,602 312,392 April 36,425 29,206 11,406 7,377 17,626 11,467 16,481 9,061 39,206 37,175 617,643 552,132 516,386 570,205 364,492 305,264 May 36,466 27,490 12,664 6,579 18,489 11,114 19,338 9,209 41,889 46,828 630,827 511,509 502,884 523,841 | 412,864 299,258 June 39,872 27,843 11,809 6,548 17,591 14,509 17,602 7,907 42,450 35,676 674,061 534,617 577,487 566,908 | 397,900 388,270 o July I..] 35,426 28,015 11,194 6,884 17,387 14,682 20,238 8,635 46,183 52,834 662,570 538,019 615,209 569,952 ; 452,286 413,099 August 34,785 27,988 10,426 7,960 16,803 13,501 16,079 8,636 39,581 29,632 635,134 521,651 546,511 608,553 j 362,698 430,352 September 34,929 38,710 10,229 9,476 17,366 14,316 12,730 13,111 38,074 42,927 611,618 581,973 592,837 667,672 i 376,763 430,104 October 38,212 38,577 10,501 9,536 17,693 13,400 14,814 9,046 37,438 44,036 616,046 537,620 601,229 659,368 I 447,985 491,117 November 7.r 39,519 30,601 10,781 7,522 18,201 13,707 15,304 7,247 39,413 34,727 629,985 547,580 651,263 578,611 ' 368,015 481,922 December............. 53,085 36,365 11,292 9,607 20,607 16,460 14,641 12,311 49,290 75,902 724,837 739,151 781,553 722,729 526,434 619,738 02 Total: 1921 468,162 365,704 133,040 90,316 216,438 154,473 203,490 108,520 514,403 505,981 7,755,970 6,491,294 1920 443,427 370,335 64,860 78,995 184,098 165,849 159,382 126,741 378,750 498,819 .16,816,449 6,894,406 1919 288,738 205,447 57,347 52,826 133,234 103,168 75,728 94,811 225,094 215,581 ,14,804,665 4,626,999 g H Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

138 REPORT OF THE FEDERAL RESERVE BOARD. CURRENCY RECEIVED FROM AND PAID TO MEMBER AND NON-MEMBER BANKS BY THE FEDERAL RESERVE BANKS, 1920 AND 1921 EXCESS OF RECEIPTS OR PAYMENTS 800 800 JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. 1920 800 700 600 500 400 300 200 100 0 100 200 300 400 500 600 700 800 JAN. FEB. MAR. APR. MAY UUNE JULY AUG. SEPT. OCT. NOV. DEC. 1921 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

o. 14.—CURRENCY (PAPER AND COIN) RECEIVED FROM AND PAID TO MEMBER BANKS AND TO NONMEMBER BANKS BY EACH FEDERAL RESERVE BANK AND BRANCH DURING 1921. [In thousands of dollars.] Receipts. Payments. Excess. Federal Reserve Bank or branch. From From non- To To nonmember member Total. member member Total. Receipts. Payments. banks. banks. banks. banks. d Boston 703,764 | 52,759 756,523 688,747 13,620 702,367 54,156 New York !, 295,627 73,031 2,368,658 1,809,076 66,212 1,875,288 493,370 o Buffalo 141,331 5,662 146,993 129,295 10,656 139,951 7,042 Philadelphia 657,188 34,053 691,241 645,495 1,044 646,539 44,702 Cleveland 189,994 4,214 194,208 145,864 2,553 148,417 45,791 o Cincinnati 122,309 2,097 124,406 72,689 3,782 76,471 47,935 Pittsburgh ;. 282,085 2,868 284,953 235,503 1,361 236,864 48,089 Richmond 103,834 13,589 117,423 113,317 73 113,390 4,033 H ui Baltimore 142,143 5,239 147,382 129,888 1,501 131,389 15,993 > Atlanta 104,222 5,559 109,781 60,611 27, 847 88,458 21,323 fej Birmingham 29,765 5,755 35,520 21,162 1,402 22,564 12,956 d Jacksonville 48,933 1,687 50,620 33,194 5,181 38,375 12,245 Nashville 35,693 35,693 21,651 1,775 23,426 12,267 > New Orleans 99,897 623 100,520 82,861 2,363 85,224 15,296 ... g Savannah (agency).. 8,601 8,601 6,517 6,517 2,084 ... ^ Chicago 766,978 16,581 783,559 676,162 5,C 681,242 102,317 H w Detroit 264,356 264,356 249,818 249,818 14,538 St. Louis 287,599 22,198 309,797 203,569 25,286 228,855 80,942 Little Rock 24,079 5,929 30,008 23,233 4,321 27,554 2,454 Louisville 79,242 1,383 80,625 60,156 1,295 61,451 19,174 Memphis 41,972 5,760 47,732 35,494 12,350 47,844 112 Minneapolis 120,561 216 120,777 80,474 200 80,674 40,103 Helena 12,229 34 12, 263 8,822 820 9,642 2,621 CO CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 14.—CURRENCY (PAPER AND COIN) RECEIVED PROM AND PAID TO MEMBER BANKS AND TO NONMEMBER BANKS BY EACH FEDERAL RESERVE BANK AND BRANCH DURING 1921—Continued. [In thousands of dollars.] Receipts. Payments. Excess. Federal Reserve Bank or branch. From From non- To To nonmember member Total. member member Total. Receipts. Payments. banks. banks. banks. banks. Kansas City 128,121 155 128,276 94,130 3,903 98,033 30,243 o Denver 42,517 1,099 43,616 21,000 484 21,484 22,132 Oklahoma City 16,611 519 17,130 11,682 711 12,393 4,737 Omaha 26,670 746 27,416 22,401 162 22,563 4,853 Dallas ; 124,349 1,562 125,911 63,049 1,040 64,089 61,822 El Paso 30,851 3,774 34,625 12,798 3,203 16,001 18,624 I Houston 42,394 560 42,954 26,572 1,858 28,430 14,524 San Francisco 232,378 3,845 236,223 251,558 6,937 258,495 22,272 |j Los Angeles \ 149,082 2,147 151,229 ; 135,388 4,624 140,012 11,217 Portland 34,341 15 34,356 j 25,948 546 26,494 7,862 = I Salt Lake City •. I 14,803 14,803 j 11,422 222 11,644 3,159 Seattle I 64,015 2,624 66,639 56,919 2,514 59,433 7,206 Spokane 11, 73 11,153 9,727 176 9,903 1,250 Total: 1921. 7,479,614 276,356 7,755,970 6,276,192 215,102 6,491,294 1,264,676 1920. 6,477,199 339,250 6,816,449 6,639,775 254,630 6,894,405 77,956 W 1919. 4,492,316 312,349 4,804,665 4,533,220 I 93,779 4,626,999 177,6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONDITION OF FEDERAL RESERVE BANKS. No. 15.—RESOURCES AND LIABILITIES OF ALL FEDERAL RESERVE BANKS COMBINED, BY WEEKS DURING 1921. [In thousands of dollars.] Cash reserves. Earning assets. Gold. Bills discounted. IT. S. securities. O o Date. c c G e g a a r o n o t t e l d i l d f d s i . - B f s m u F G e o n . t e o a d tl n R l r — d e d t . - . a F G w g . e o i R t n l h d . t . I I | | re f G d t u i e o o n m n l d d . p- Total. t s n L e i e o l n e v t t g d c e e . a e s r l r , , Total. j I i ! i b G S o y t e m b o i c o l v U e i u n g e n . r s r a e t . n S - d - . All other. Total. m i b n o B a u o r il k g p ls e h en t t . i C n e d r e t b i t f e ic d a n t e e S s v o S f . Total. d h o —I 1921. ! Jan. 7 ! 250,135 405,644 1,264,762 | 156,441 %080,282 196,566 | 2,276,848 (1,104,536 1,502,813 2,607,349 234,759 26,121 259,375 2,410 3,130,014 14 | 247,365 393,173 1,265,558 ! 176,058 12,085,454 203,084 j 2,288,538 jl, 024,607 1,424,933 2,449,540 203,412 25,907 259,375 30,310 2,968,544 21 i 220,239 421,325 1,286,304 164,601 12,095,769 205,462 j 2,301,231 jl, 056,117 1,426,912 2,483,029 167,950 25,918 259,375 5,256 2,941,528 28 | 199,869 461,523 1,288,450 152,995 12,106,137 213,837 ! 2,319,974 |l, 048,768 1,407,707 2,456,475 165,058 25,868 259,375 2,077 2,908,853 Feb. 4 | 199,750 482,192 1,274,747 151,958 12,111,947 214,180 2,326,127 1,017,152 1,415,921 2,433,073 167,818 25,868 259,375 595 2,886,729 11 | 204,985 480,480 1,269,037 167,476 2,121,978 220,220 2,342,198 1,011,677 1,393,839 2,405,516 175.873 25,868 259,375 4,199 2,870,831 18 1 210,978 511,751 1,260,546 149,377 2,132,652 220,338 2,352,990 990,182 1,374,226 2,364,408 166.874 j 25,867 259,375 2,384 2,818,908 25 217,335 530,104 1,234,181 | 158,693 2,140,313 216,686 2,356,999 jl, 003,975 1,392,279 2,396,254 170,503 | 25,868 259,375 2,135 2,854,135 i 526,499 1,236,560 | 165,678 2,163,090 212,673 2,375,763 981,840 1,359,665 2,341,505 164,004 25,867 254,375 3,318 2,789,069 Mar. 4 | 234,353 528,216 1,240,570 | 164,844 2,187,906 210,018 2,397,924 1,005,977 1,362,473 2,368,450 146,608 25,866 254,375 1,312 2,796,611 11 | 254,276 513,572 1,257,807 | 167,729 2,205,539 209,250 2,414,789 11,000,386 1,224,533 2,224,919 122,780 25,864 254,375 30,576 2,658,514 18 | 266,431 509,913 1,245,507 | 163,385 2,210,765 211, 212 2,421,977 1,010,373 1,276,275 2,286,648 123,056 25,866 254,375 2,490 2,692,435 25 | 291,960 Apr. 1 j 299,485 497,790 1,300,345 148,819 2,246,439 214,792 2,461,231 950,688 1,263,907 2,214,595 122,491 25,739 247,375 2,983 2,613,183 8 | 313,322 504,061 1,306,949 139,678 2,264,010 217,824 2,481,834 936,021 1,218,731 2,154,752 103,607 25,566 247,375 6,303 2,537,603 15 | 327,637 466,241 1,346,558 146,443 2,286,879 198,198 2,485,077 929,186 1,175,368 2,104,554 119,582 25,933 245,875 7,824 2,503,768 22 1 339,432 477,229 1,321,816 159,594 2,298,071 194,733 2,492,804 942,665 1,171,191 2,113,856 104,452 25,710 240,875 5,827 2,490,720 27 | 347,946 488,219 1,317,860 163,544 2,317,569 187,194 2,504,763 920,537 1,143,202 2,063,739 103,609 25,709 239,375 2,708 2,435,140 * Includes $3,300,000 of gold with foreign agencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 15.—RESOURCES AND LIABILITIES OF ALL FEDERAL RESERVE BANKS COMBINED, BY WEEKS DURING 1921—Continued. [In thousands o f dollars.] fcO Cash reserves. Earning assets. Gold. Bills discounted. U. S. securities. I Legal Date. c c G e g a a r o n o t t e l i d l d f d s i . - f B s u m F G e n o . t e R o d a tl n l r — . e d d t - . a F w G g . e o i R t n l h d t . . , re f G d t u i e n o o m l d n d . p - I ! ! j Total. t s n e i e o l n t v t c d e e . e s r , r , b G S o y t m e b i o o c l v e i u n U e g n r s r a t e . . n S - d - . All other. Total. m i b n B o a o u r i p l k g l e s e h n t t . B n a o o n t n e d d s s . O Pi n t i e C t n m e y d r e e a t a i n b f r t i e ca d A t n e ll e s s o o s t f . her, Total. Act. 1921. 1 May 4 364,244 482,200 1,326,087 170,827 2,343,358 176,540 2,519,898 892,366 1,173,879 2,066,245 94,302 25,708 239,375 1,009 2,426,639 11 377,610 450,584 1,374,138 161,221 2,363,553 174,220 2,537,773 917,697 1,117,660 2,035,357 76,637 25,708 237,875 3,558 2,379,135 18 325,391 454,105 1,458,619 140,791 2,378,906 170,228 2,549,134 774,869 1,067,684 1,842,553 81,667 25,947 | 234,875 128,936 2,313,978 25 279,261 474,952 1, 505,229 133,505 2,392,947 165,285 2,558,232 793,951 1,076,305 1,870,256 87,138 25,597 233,375 46,754 2,263,120 June 1. 281,098 504,746 1,477,665 145,144 2,408,653 160.172 2,568,825 773,863 1,152,370 1,926,233 77,072 32,938 226,875 6,614 2,269,732 297,476 521,539 1,460,358 151,299 2,430,672 161,874 2,592,546 747,006 1,149,353 1,896,359 69,501 32,685 225,375 1,652 2,225,572 g 15. 311,017 456,211 1,550,817 127,523 2,445,568 170,056 2,615,624 664,296 1,043,383 1,707,679 53,200 35,066 222,375 300,513 2,318,833 22. j 315,472 400,841 1,598,128 136,047 2,450,488 169,517 2,620,005 657,980 1,095,983 1,753,963 39,488 33,729 222,375 32,848 2,082,403 Ul 29 j 323,900 407,234 1,597,219 133,578 2,461,931 163,527 2,625,458 647,761 1,123,801 1,771,562 31,601 34,549 215,875 6,908 2,060,495 July 338,957 403,146 1,598,265 137,438 2,477,806 153,405 2,631,211 674,377 1,126,986 1,801,363 31,136 36,610 215,875 10,551 2,095,535 W 13. 352,341 402,248 1,623,321 114,834 2,492,744 154,850 2,647,594 618,784 1,085,196 1,703,980 25,135 36,098 215,875 18,534 1,999,622 O 20. 368,448 404,005 1,624,332 111,513 2,508,298 151,068 2,659,366 609,779 1,076,370 1,686,149 23,907 35,407 215,875 2,892 1,964,230 27. 419,741 1,616,287 105,538 2,531,231 154,065 2,685,296 591,215 1,059,281 1,650,496 19,424 34,175 214,375 938 1,919,408 i I Aug. 3 | 412,836 | 425,766 1,615,482 98,729 2,552,813 151,030 2,703,843 572,867 1,044,751 1,617,618 29,961 34,114 207,875 13,541 1,903,109 10 j 423,005 | 408,756 1,640,626 103,514 2,575,901 144,947 2,720,848 562,918 963,741 1,526,659 44,978 34,152 206,375 19,215 1,831,379 17 407,452 j 418,738 1,660,062 114,043 2,600,295 145.173 2,745,468 559,689 952,428 1,512,117 41,910 34,028 203,375 7,876 1,799,306 24 425,699 I 426,454 1,646,109 120,816 2,619,078 147,078 2,766,156 541,754 953,597 1,495,351 35,209 34,099 201,875 2,800 1,769,334 31 ] 413,900 | 428,075 1,694,523 104,563 2,641,061 146,859 2,787,920 545,176 946,759 1,491,935 35,320 34,008 193,875 2,350 1,757,488 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Sept. 7 430,585 438,590 j1,677,195 110,008 2,656,378 146,876 2,803,254 | 539,333 969,154 1,508,487 j 44,920 \ 33,813 190,875 17,084 I 1,795,179 14 446,642 441,109 |1,694,301 102,449 2,684,501 150,001 2,834,502 ! 503,677 924,485 1,428,162 | 40,712 ! 33,729 187,875 19,803 | 1,710,281 21 428,036 411,210 |1,777,529 94,353 2,711,128 151,968 2,863,096 j 495,156 892,081 1,387,237 | 33,514 | 38,081 184,875 8,571 ! 1,652,278 28 442,707 415,765 I1,759,065 108,429 2,725,966 152,719 2,878,685 | 490,927 911,976 1,402,903 | 38,889 ! 36,485 175,375 12,399 j 1,666,051 Oct. 5 448,472 415,175 I1,756,582 112,370 2.732,599 150,343 2,882,942 j 495,866 902,255 1,398,121 I 42,070 j 35,433 167,375 19,054 I 1,662,053 11 446,962 426,998 1,732,113 122,849 2,728,922 148, Oil 2,876,933 502,791 899,615 1,402,406 I 61,393 | 33,656 162,875 19,862 I 1,680,192 19 447,697 480,829 1,711,331 132,864 2,772,721 149,039 2,921,760 459,671 870,097 1,329,768 | 54,298 ' 33,130 156,875 3,808 2 1,577,889 26 448,280 496, 111 1,729,790 112,058 2,786,239 150,909 2,937,148 ! 461,886 846,863 1,308,749 I 62,316 33,207 149,875 7,864 2 1,562,021 O o Nov. 2 458,468 502,647 1,708,670 130,472 2,800,257 145,414 2,945,671 ! 453,501 806,929 1,260,430 | 87,491 36,831 144,875 19, 822 2 1,549,459 9 469,250 500,723 1,723,523 122,803 2,816,299 144,484 2,960,783 | 453,621 792,399 1,246,020 I 89,016 34,117 138,500 53,099 2 1,561,368 16 473,760 424,014 1,810,060 116,067 2,823,901 145,567 2,969,468 j 431,891 766,128 1,198,019 i 68,320 32,127 132,500 51,262 21,482,238 o 23 485,108 425,833 |1,811,316 112,972 2,835,229 142,999 2,978,228 j 467,163 738,007 1,205,170 | 69,375 32,486 131,000 37,834 21,475,887 30 488,967 465,236 |1,779,605 115,639 2,849,447 139,695 2,989,142 | 476,360 705,941 1,182,301 j 72,954 32,253 126,000 46,291 2 1,459,866 o Dec. 7 484,048 457,202 j 1,787,724 122,053 2,851,027 139,606 2,990,633 I 457,618 713,041 1,170,659 | 81,784 34,731 124,500 | 43,168 21,455,069 14 430,560 504,744 | 1,813,422 120,447 2,869,173 132,413 3,001,586 J 459,630 693,203 1,152,833 | 99,735 43,575 119,500 j 66,710 21,482,626 21 380,268 559,621 1,833,108 97,997 2,870,994 122,066 2,993,060 I 503,770 720,933 1,224,703 | 126,525 51,084 119,500 i 41,127 21,563,273 28 380,911 534,099 1,846,369 | 108,221 2.869,600 122,600 2,992,200 | 487,193 692,640 1,179,833 114,240 59,472 119,500 ! 62,472 2 1,535, 851 2 Includes municipal warrants as follows: Oct. 19, $10,000; Oct. 26, $10,000; Nov. 2, $10,000; Nov. 9, $616,000; Nov. 16, $10,000; Nov. 23, $22,000; Nov. 30, $67,000; Dec. 7, $227,000 Dec. 14, $273,000; Dec. 21, $334,000; Dec. 28, $334,000. U2 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 15.—RESOURCES AND LIABILITIES OF ALL FEDERAL RESERVE BANKS COMBINED, BY WEEKS DURING 1921—Continued. [In thousands of dollars.] Five per Deposits. I Note circulation. 3ent re- Re- Dale. p B i r s a e e n m s k . - ti a d o n F b g e n o . a a m t i n f e R n u p k s s . n - . t d U i l t e e n c m c te o s d l , - j j A so ll r u e r o c - t e h s e . r T a b so n o i u l t d i a r t c i l l e e i r s a s e . - - p C a a i p d it i a n l . Surplus. ' G r s a m o e t n f a r v e o c v x e n r h e . r t i d n s - e G m ov e e n rn t. - s b M e c a r o e n v m u k e n b a r t e e . c r - - ot A h l e l r. Total. iF.R. notes. n b n F b e i o . a t l t i n e l R t i k y s a . , . - D a i e a t b f e v e il m a r i r t i e y l s d - . A l l i t l a i b e o s i t l . h i- er 1921. Jan. 7 17,359 12,389 744,111 687 6,186,408 99,808 202,036 25,592 1,795,343 25,476 | 1,846,411 3,270,023 213,552 532,927 21,651 14 17,955 12,799 706,076 6,801 6,000,713 99,815 202,036 8,970 1,756,325 27,246 j 1,792,541 3,159,491 213.177 509,670 23,983 21 18 ; 215 12,680 666,452 6,873 5,946979 99,962 202,036 32,603 1,765,225 j 25,157 | 1,822,985 3,115,290 207,365 472,663 26,678 28 18,228 12,746 593,911 7,626 5,861338 100,147 202,036 52,138 1,731,823 24,022 j 1,807,983 3,090,748 202,276 429,838 28,310 Feb. 4... 18,244 j 12,868 595,291 j 7,794 5,847,053 I 100,228202,036 48,373 1,742,762 26,215 ; 1,817,350 3,075,750 197,210 423,661 30,818 11. 18,977 j 12,207 566,789 || 311,4895,822,491 100,557 202,036 48,457 1,740,259 25,759 1,814,475 3,050,416 198.178 423,656 33,173 18. 19,309 I 12,114 640,972 13 11,728 5,856,021 100,740 202,036 61,516 1,720,855 24,588 1,806,959 3,037,444 193,431 479,820 35,591 25. 19,469 j 12,159 606,733 | 3li,6065, 861,101 100,790 202,036 62,984 1,722,919 23,257 1,809,160 3,051,706 189,325 469,859 38,225 Mar. 19,733 12,1 631,268 ; 312,569 j 5,840,6011 0|0,865 202,036 56,941 1,705,364 23,998 1,786,303 3,042,611 185,109 482,451 41,226 20,193 12,728 605,068 13 13,185 ] 5,845,709 1j01,003 202,036 81,521 1,731,429 30,742 1,843 692 3,005,840 182,087 167,255 43,796 18 ! 20,465 12,428 716,882 3 13,191 5,836,269*101,058 202,036 58,789 1,677,774 38,072 1,774,635 2,962,880 179,250 570,347 46,063 25 1 20,522 12,068 I 592,950s 13,215 5,753,167 101,113 202,036 114,685 1,674,536 51,666 1,840,887 2,930,729 175,490 454,279 48,633 Apr. 1 I 20,651 11,856 554,315 200 5,672,436 j101,137 202,036 82,099 1,672,402 34,732 1,789,233 2,908,153 169,722 451,270 50,885 8 i 21,002 11,647 544,255 454 5,607,795 |101,226 202,036 48,053 1,661,938 35,325 1,745,316 2,893,964 167,152 445,108 52,993 15 j 21,514 12,166 618,107 892 5,652,524 !101,274 202,036 31,117 1,685,503 38,323 1,754,943 2,868,527 163,187 507,724 54,833 22 1 21,782 562 550,950 | ,310 |5,580,128 !101,231 202,036 67,483 1,648, 858 33,010 1,749,351 2,856,700 159,590 454,038 56,982 27 1 21,832 11..339 519,828 j ,578 5,504,480 |101,235 202,036 35,872 1,656,718 33,300 1,725,890 2,830,118 156,258 430,700 58,243 I May 4 j 21,908 10,886 524,651 ; ,720 5,516,702 101,857j 202,036 23,418 1.671,385 34,428 1,729,231 2,828,586 153,859 441,069 60,064 11.. 23,007 11,374 532,776 ,886 I5,495,951 102,033 202,036 32,528 13,799 1,687,985 31,660 1,733,444 2,804,933 149,894 441,950 29,133 18.. 23,192 11,476 580,270 j ,430 |5,490,480 102,116 202,036 34,014 15,632 1,665,517 35,493 1,716,642 2,767,415 147,766 491,004 29,487 25. 23,396 11,174 510,175 I ,663 [5,379,760 102,173I 202,036 35, 271 17,323 1,655,609 33,024 1,705,956 2,734,804 144,834 | 424,929 29,757 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

June 1.. 23,497 10,427 547,094 15,114 5,434,689 102,216 202,036 36,283 32,353 1,656,581 31,456 1, 720,390 2,751,299 143,493 448,087 30,885 8.. 23,842 10,449 541,495 13,482 5,407,386 102,066 202,036 38,057 20,261 1,684,075 30,721 1,735,057 2,710,723 141,054 447,357 31,036 15. 24,442 10,176 722,766 15,338 5,707,179 102,156 202,036 39,057 14,597 1,866,455 48,175 1,929,227 2,674,435 135,050 594,207 31,011 22. 24,717 10,194 564,105 14,404 5,315,828 102,177 202,036 40,400 17,957 1,647,709 31,581 1,697,247 2,639,319 135,004 467,928 31,717 29. 24,845 10,042 506,454 14,747 5,242,041 102,184 202,036 40,910 15,352 1,641,156 29,280 1,685,788 2,634,475 132,400 412,214 32,034 July 6.. 24,861 9,679 557,162 13,088 5,331,536 102,103 213,824 42,065 34,024 1,651,757 27,371 1,713,152 2,671,916 133,303 438,455 16,718 13. 25,519 10,033 590,894 14,698 5,288,360 102,090 213,824 43,419 10,942 1,655,303 27,746 1,693,991 2,603,833 130,556 483,901 16,746 20. 25,762 9,954 544,655 12,712 5,216,679 102,222 213, 824 44,231 34,967 1,630,196 27,856 1,693,019 2,564,512 127,875 453,543 17,453 27. 25,846 9,666 494,948 15,046 5,150,210 102,263 213,824 45,503 31,709 1,638,637 24,928 1,695,274 2,537,617 125,143 413,037 17,549 Aug. 3. 25,892 9,614 493,700 17,176 5,153,334 102,372 213,824 45,826 56,747 1,619,920 28,399 1,705,066 2,536,673 122,379 409,227 17,967 10. 26,720 9,516 483,486 16,787 5,088,736 102,600 213,824 46,608 35,595 1,601,583 25,294 1,662,472 2,520,784 118,301 405,696 18,451 17 26,952 9,471 531,871 17,302 5,130,370 102,896 213,824 47,006 19,014 1,621,570 30,665 1,671,249 2,503,642 114,502 458,120 19,131 24. 27,256 9,583 463,592 17,253 5,053,174.103,030 213,824 47,824 31,479 1,616,964 25,188 1,673,631 2,485,914 112,811 397,011 19,129 31. 27,509 9,539 455,897 17,470 5,055,823 103,050 213,814 48,061 46,809 1,618,901 25,044 1,690,754 2,481,466 109,864 389,362 19,442 Sept. 7. 27,700 9,221 494,667 18,101 5,148,122 103,073 213,824 49,099 60,701 1,632,135 25,232 1,718,068 2,517,563 107,759 418,553 20,183 14. 28,877 8,845 641,279 16,801 5,240,585 102,982 213,824 50,101 49,219 1,631,038 25,574 1,705,831 2,491,651 103,078 553,235 19,883 21. 29,111 8,917 591,811 16,448 5,161,661 103,017 213,824 50,777 74,183 1,588,209 29,218 1,691,610 2,474,676 103,590 503,174 20,993 28. 29,172 9,086 508,185 15,947 5,107,126 103,049 213,824 51,654 57,253 1,635,572 24,580 1,717,405 2,457,196 101,372 441,300 21,326 Oct. 5.. 29,501 8,842 558,105 15,906 5,157,349 103,046 213,824 51,741 59,004 1,613,149 24,179 1,696,332 2,482,313 99,602 488,741 21,750 11. 30,052 8,777 567,681 16,697 5,180,332 103,070 213,824 52,514 54,270 1,646,099 24,496 1,724,865 2,476,311 97,933 489,403 22,412 19 30,957 8,883 630,581 16,887 5,186,957 103,034 213,824 53,145 29,120 1,660,936 27,388 1,717,444 2,440,862 92,952 543,238 22,458 26. 31,020 8,099 540,067 16,560 5,094,915 103,007 213,824 53,938 46,624 1,669,059 22,873 1,738,556 2,408,779 88,024 466,044 22,743 Nov. 2.. 31,345 8,038 558,326 18,684 5,111,523 103,020 213,824 54,026 59,917 1,650,746 31,675 1,742,338 2,408,122 84,985 481,623 23,585 9. 32,005 7,866 521,847 17,999 5,101,868 103,120 213,824 54,478 30,792 1,670,124 25,949 1,726,865 2,420,831 80,524 478,024 24,202 16 32,571 7,813 687,243 18,497 5,197,830 103,166 213,824 54,643 33,103 1,674,064 30,549 1,737,716 2,398,224 74,786 591,324 24,147 23 32,949 7,903 544,393 18,732 5,058,092 103,216 213,824 55.131 32,155 1,670,717 25,625 1,728,497 2,389,916 74,765 468,110 24,633 30. 33,241 7,941 534,872 19,334 5,044,396 103,104 213,824 55,119 45,913 1,670,362 26,555 1,742,830 2,366,006 75,862 462,795 24,856 Dec. 7. 33,384 7,854 510,961 19,476 5,017,377 103,089 213,824 55,566 52,337 1,640,445 25,501 1,718,283 2,373,355 77,014 450,792 25,454 14. 34,336 7,889 629,790 20,209 5,176,436 103,130 213,824 56,080 69,407 1,645,610 27,743 1,742,760 2,393,777 78,309 562,974 25,582 21. 34,879 7,880 592,172 19,920 5,211,184 103,167 213,824 55,982 54,875 1,703,601 26,274 1,784,750 2,447,560 82,747 497,205 25,949 35,015 7,896 559,766 20,578 5,151,306 103,186 213,824 57,444 71,634 1,666,018 26,872 1,764,524 2,443,497 84,548 458,960 25,323 a Includes $3,300,000 of gold abroad—in custody or in transit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

146 REPORT OF THE FEDERAL RESERVE BOARD. MOVEMENT OF EARNING ASSETS OF ALL FEDERAL RESERVE BANKS COMBINED DURING 1920 AND 1921 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 1200 3200 I DISCOUNTED BILLS j | I—r~<SE£ N°T£ BELOWy-\—i 1920 1921 A - Discounted bills secured by U S. Government obligations. B - Total discounted Dills. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONDITION OF FEDERAL RESERVE BANKS. 147 DEPOSITS, F.R. NOTE CIRCULATION, CASH RESERVES AND RESERVE RATIO OF ALL FEDERAL RESERVE BANKS COMBINED DURING 1920 AND 1921 PERCENT I RESERVE RATIO * *—* 70 70 *^ 60 — ' 60 50 50 40 40 30 i 30 —j__ - MILLIONS OF DOLLARS MILLIONS OF DOLLARS 3000 6000 6000 DEPOSIT AND F.R.NOTE LIABILITIES, L", AND TOTAL RESERVES,C 5000 5000 4000 4000 3000 3000 2000 2000 1000 1000 1920 1921 The deposit ourve is based on "net deposits" prior to March 18, 1921, and on "total deposits" beginning with that date See page 27. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 16.—CONDITION OP EACH FEDERAL RESERVE BANK ON DEC. 31, 1921. [Detailed figures in roman type represent items shown on the balance sheets of the banks before closing of books on Dec. 31,1921; 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. d P el h p i h la i - a . C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. Sa c n i s F co ra . n- O Gold bullion and coin 115,067 4,505 62,357 9,251 657 1,177 10,245 731 1,813 1,228 6,973 15,176 H Gold certificates 259,661 2,612 220,785 2,990 2,006 3,982 11,780 2,526 7,327 1,289 290 3,078 O Gold and gold certificates 374,728 7,117 283,142 1,950 12,241 2,663 5,159 22,025* 3,257 9,140 2,517 7,263 18,254 Gold settlement fund—F. R. Board. 522,451 42,312 130,058 61,776 41,455 19,094 14,806 79,130 22,963 31,115 33,764 8,518 37,460 T otal gold held by banks 897,179 49,429 413,200 63,726 53,696 21,757 19,965 101,155 26,220 40,255 36,281 15,781 55,714 Gold with F. R. agent | 1,872,670 159,910 653,004 144,402 177,327 38,057 45,225 312,163 66,158 16,856 28,042 | 11,093 220,433 Gold redemption fund 105,146 27,746 15,000 4,366 5,107 4,962 5,450 26,284 3,695 2,765 3,474 I 2,941 3,356 Total gold reserves 2,874,995 237,085 1,081,204 ' 212,494 j 236,130 64,776 70,640 439,602 j 96,073 59,876 67,797 | 29,815 279,503 Legal-tender notes 62,802 8,385 29,362 i 2,201 j 921 3,679 976 8,731 | 4,486 101 3,064I 267 629 Silver certificates | 40,840 4,950 16,382 | 4,132 ; 2,831 1,618 1,206 4,194 | 2,800 229 1,539 267 632 Silver coin I 31,615 1,340 4,592 | 826 I 3,404 1,484 3,460 2,945 | 3,222 481 2,258 5,615 1,988 Legal-tender notes, silver, etc i 135,257 14,679 50,336 ! 7,159 7,156 6,781 5,642 15,870 j 10,568 811 6,861 6,149 3,249 Total cash reserves 3,010,252 251,760 1,131,540 219,653 243,286 71,557 76,282 455,472 106,641 I 60,687 74,658 35,964 w Member banks' collateral notes, secured o by IT. S. Government obligations 443,722 16,677 153,393 56,155 43,005 38,639 19,718 54,815 19,069 I 6,763 \ 15,902 8,677 10,909 Other discounted bills, secured by IT. S. i Government obligations 41,511 4,856 2,621 10,460 3,163 2,408 2,762 I 526 ; 1,937 285 2,774 Bills discounted, secured by TJ. S. 4,702 | 5,017 I Government obligations 485,233 21,533 156,014 | 66,615 46,168 41,047 21,831 | 7,289 17,839 8,962 | 13,683 Member banks' collateral notes, other- 24,420 | 59,832 wise secured and unsecured 17,752 15 1,337 33 1,932 I 1,964 i 11,526 Other discounted bills, otherwise secured 327 1 G18 i and unsecured 641,361 37,638 53,066 21,937 68,411 52,284 j 41,189 41,991 i 52,140 39,671 I 41,884 66,080 1 125,070 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bills discounted—All other 659,113 37,638 53,066 21,937 68,426 53,621 66,407 125,688 41,222 43,923 52,140 41,635 '• 53,410 Bills bought in open market 145,263 13,149 72,593 15,895 5,378 3,558 3,686 8,489 218 1,337 165 20,795 Total bills on hand 1,289,609 72,320 281,673 104,447 119,972 98,226 94,513 194,009 63,271 51,212 71,316 50,762 87,888 Liberty bonds 12,652 9 596 885 474 81 10,303 64 29 211 Other U. S. bonds 19 818 529 549 415 1 152 11 4,426 1,153 115 8,838 2,630 Victory notes 12,622 909 739 4,455 3,627 175 1 2,716 Treasury notes 5,119 41 3,570 12 1,488 8 IT. S. bonds and notes 50,211 1,488 4,166 2,173 5,356 1,233 10,314 9,605 1,161 290 8,868 2,630 2,927 TJ. S. certificates of indebtedness: One-year certificates (Pittman act). 113,000 8,450 35,400 10,000 8,040 3,760 8,564 12,667 6,569 4,450 5,320 1,900 7,880 Allother 70,492 1,368 63,959 189 286 2 4,372 203 66 47 Municipal warrants ~ 379 140 89 150 Total earning assets 1,523,691 83,626 385.198 116,949 133,654 103,219 113,393 220,653 71,204 56,041 85,720 55,292 98,742 Bank premises 35,622 4,740 6,660 600 3,974 2,824 1,008 7,010 628 769 4,407 2,176 826 Five per cent redemption fund against F. R. Ba/nl^ notes . , 7,805 422 1 603 700 539 188 523 1,665 523 201 889 156 394 National bank notes 19,319 784 7,733 217 2,964 48 1,129 3,705 623 89 360 871 796 Bank notes of other F. R. banks... 536 28 50 19 420 6 13 F. R. notes of other F. R. banks 13,753 3,905 450 1,759 42 1,468 3,290 467 190 543 359 1,280 Unassorted currency 34,883 10,417 1,590 3,330 1,838 4,011 10 2,458 1,085 4,708 344 5,092 Transit items.. 444,417 40,750 83,636 35,574 41,129 41,399 16,058 59,524 28,819 12, 400 34,749 23,257 27,122 Checks and other cash items 12,199 140 5,103 4,260 18 167 391 510 38 145 344 408 675 Exchanges for clearing house... 26,144 721 2,986 4,205 3,680 2,870 516 6,759 1,339 596 216 54 2,202 Domestic transfers purchased 4 420 1 365 3 055 ITncollected items 555, 671 52,812 103,363 46,296 54,273 46,414 23,592 77,273 33,744 14,505 40,926 25,293 37,180 Other resources: Liberty bonds held against participation certificates ... 34 32 2 D ue from foreign banks 695 695 Unmatured coupons 1 1 C1) Real-estate mortgage,. 33 33 Nickels and cents 4,852 221 968 97 794 198 448 1, 063 286 65 287 300 »Less than $500. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 16.—CONDITION OP EACH FEDERAL RESERVE BANK ON DEC. 31, J921—Continued. [In thousands of dollars.] RESOURCES—Continued. Total. Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty s . as Dallas. Sa c n i s F co ra . n- Other resources—Continued. Claims a/c closed banks 5,050 1 259 368 799 120 1,793 1,710 O W Loans and discounts—suspense ac- H count - 435 435 O Overdrafts member banks 4 497 4 48 49 96 4,300 Overdrafts—U. S. Government 3,827 2,100 1,727 Cafeteria—future supplies 1 1 Furniture and equipment 287 64 170 5 C1) 14 34 Stamp account 5 5 Interest accrued on U. S. securities... 2,105 95 1,009 111 99 43 187 215 77 46 101 35 87 d Premiums on U. S. bonds 0) 0) Interest due at maturity on municiDal warrants 6 6 Rents receivable 3 1 1 1 Fiscal agency expenses 64 2 4 2 7 1 4 12 5 9 10 3 5 Cost of Federal Reserve currency 320 320 Deferred charges . . .. 666 41 70 1 9 12 40 230 23 18 140 82 Suspense account . . 42 40 2 W Difference account 6 4 1 0) 0) C1) 0) 1 o > All other resources 22,929 428 2,855 2,318 914 4?4 734 3,508 760 1,033 518 2,783 6,604 Total resources . 5,155,970 393,788 1,631,219 386,516 436, 640 224, 676 215,534 765,581 213,500 133,236 207.118 121, 664 426,498 LIABILITIES. Capital paid in. 103,165 7,936 27,114 8,736 11,134 5,429 4,190 14,307 4,603 3,569 4,570 4,203 7,374 Surplus 213,824 16,342 59,318 17, 564 22,263 11,026 8,708 30, 536 9,114 7,303 9,330 7,113 15,207 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserved for Government franchise tax 59,974 3,036 20,702 3,886 3,295 3,378 4,480 11,576 1,639 2,451 2,301 3,230 Deposits: Government 39,977 5,332 11,913 2,980 1,078 6,733 2,163 3,752 4,344 994 Member bank—reserve account... 1,752,645 110,522 726,U98 104,706 130,599 56,127 42,967 237,012 64,613 43,524 71,997 43,372 121,108 Foreign banks 11,555 584 6,491 640 656 392 288 952 376 216 384 368 Nonmembers—clearing account 9,914 6,634 14 455 383 150 1 2,277 Cashiers' checks 4,567 196 1,321 484 127 46 34 904 64 102 238 962 F. R. exchange drafts 256 39 5 0) 42 26 0) 49 F. R. transfer drafts 7 7 Suspense 256 256 Special deposit 4 4 All other 26,559 1,086 14,451 1,210 783 438 336 2,353 849 477 623 297 3,656 Total deposits— 1/819,181 116,940 752,462 105,916 134,362 57, 643 50,036 239,365 67, 625 44, 689 76,372 48,013 125,758 F. E. notes outstanding. 2, 781,791 220,157 816,748 222,870 239,864 117,457 128,644 447,218 114,103 60, 477 75, 438 39,538 299, 277 Less: Held by banks and branches. 335,583 14,784 150,336 19,068 20,275 9,271 5,543 36,831 17, 775 2,356 5,207 3,281 50,856 Forwarded for redemption 36,816 2,838 3,049 3;078 4,814 1,085 1,630 7,924 1,082 1,332 1,187 787 8,010 Total deductions. 372,399 17,622 153,385 22,146 25,089 10,356 7,173 44,755 18, 857 3,688 ! 6,394 4,C 58,866 F. R. notes in actual circulation 2,409,392 202,535 663,363 200,724 214,775 107,101 121,471 402,463 95,246 56,789 69,044 35,470 240,411 F. R. bank notes outstanding 99,809 6,844 32,067 6,051 5,843 3,556 8,203 8,529 4,077 4,322 11,447 2,949 5,921 Less: Held by banks and branches.. 16,119 567 11,508 165 46 40 169 1,143 154 102 832 223 1,170 F. R. bank notes in actual circulation- net liability 83, 690 6,277 20,559 5,886 5,797 3,516 8;034 7,386 3,923 4,220 10,615 2,726 4,751 Government transit items 14, 025 709 1,553 4,163 836 366 615 3,678 604 514 1 328 U.S. Treasurer—suspense account 49 49 All other transititems 432,510 38,664 82,246 38,886 42,684 35, 254 16,865 53,023 29,659 12, 405 33,531 21,907 27,386 Domestic transfers sold 501 500 1 Coin deposited for redemption 27 27 0) Currency deposited for redemption 102 102 Def srred availability items. 447,214 39,502 83, 848 43,049 43, 520 35,620 17,480 57,201 30,263 12,919 33,532 22,235 28,045 1 Le^sthan 1500. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 16.—CONDITION OF EACH FEDERAL RESERVE BANK ON DEC. 31, 1921—Continued. fin thousands of dollars.] to LIABILITIES—Continued. Total. Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n t s y a . s Dallas. Sa c n i s F c r o a . n- Other liabilities: Earnings2— Bills discounted 40,951 2,136 8,309 2,734 3.695 2,926 2,947 6,775 2,097 2,166 2,175 1,770 3,221 Bills purchased 1,444 147 639 123 ! 58 88 98 82 12 0) 32 4 161 U S securities - 2,963 182 1,032 241 201 64 334 400 120 56 174 60 99 Bill of lading drafts 1 1 Municipal warrants 1 0) 0) Deficient reserve penalties 582 6 33 14 27 90 48 60 40 80 80 58 46 Domestic transfers bought and sold—net earnings 48 15 32 1 Profit on U. S. securities 5 5 Miscellaneous . 186 9 57 7 5 4 2 25 18 2 17 16 24 Gross earnings 46,181 2,480 10,070 3,119 4,006 3,172 3,429 7,374 2,287 2,306 2,479 1,908 3,551 Less current expenses 18,113 1,185 4,146 1,374 1,485 1,016 754 2,359 1,000 661 1,285 900 1,948 Current net earnings 28,068 1,295 5,924 1,745 2,521 2,156 2,675 5,015 1,287 1,645 1,194 1^008 1,603 Add: Net income—other real estate 19 4 1 Q 5 Profit and loss—credit 13 0) 13 C1) Deduct: Net expense—other real estate 75 5 60 8 1 1 Profit and loss—debit 332 174 4 2 C1) 151 1 Dividends accrued during current period 3,087 238 811 260 333 162 124 430 137 107 135 128 222 Net earnings available for surplus and franchise tax 24,606 1,057 4,943 1,482 2,195 1,989 2,400 4,525 1,155 1,537 1,064 880 1,379 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve for self-insurance 588 538 50 I Reserve for depreciation on bank premises 691 425 100 100 66 Reserve for depreciation on U. S. bonds . . 1,367 113 63 251 138 10 5 113 208 55 84 241 86 Reserve against undetermined liabilities 1,104 1,104 Reserve for probable losses .. . 189 1 189 o o Special reserve .... 2,609 250 100 380 76 300 260 500 Reserve for taxes other than fran- u chise tax 286 18 61 16 52 10 20 26 15 10 33 8 17 B Reserved for sundry expenses 1,089 36 85 54 41 35 290 128 64 1 4 2 349 A ccrued dividends unpaid 928 238 334 135 221 o Sundry items payable 384 384 3 Unearned discount 4,673 160 286 179 348 312 410 1,049 291 460 500 349 329 Discount and premium on U. S. securities 5 5 Cuisine accounts 14 14 Participation certificates—Liberty bonds 14 12 2 Capital paid in by applicants for membership 35 2 33 Partial payments on bills discounted. 83 83 Payments received on additional collateral 72 72 Difference account 1 0) 1 (i) > Suspense account 15 15 (i) Total 38,753 2,047 7,841 1,982 3,258 2,736 3,125 6,591 1,812 2,463 2,113 1,904 2,881 Deduct: Reserved for Government franchise tax2 19,223 827 3,988 1,227 1,764 1,773 1,990 3,844 725 1,167 759 1,159 11 other liabilities 19,530 1,220 3,853 755 1,494 963 1,135 2,747 1,087 1,296 1,354 1,904 1,722 Total liabilities.. 5,155,970 393,788 1,631,219 386,516 436,640 224,676 215,534 765,581 213,500 133,236 207,118 121,664 426,498 Or » Less than $500. »Period July 1 to Dec. 31,1921. CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 17.—DEPOSITS, FEDERAL RESERVE NOTE CIRCULATION, REQUIRED RESERVES, EXCESS RESERVES, AND RESERVE PERCENTAGES, BY WEEKS DURING 1921. [In thousands of dollars.] Liability on— Reserves required. Ratio of Gold in total cash i excess of reserves to Total cash required denosit Date. F. R. Deposits On de- On F. R. reserves reserves and^F. R. Deposits.1 notes in and notes posits (35 notes (40 Total. held. (free note circulation. combined. percent). per cent). gold). liabilities c combined. O 1921. Jan. 7 1,634,538 3,270,023 4, 904,561 572,090 1,308,011 1, 880,101 2,276,848 396,747 46.4 H 14 1,595,446 3,159, 491 4, 754, 937 558, 406 1,263,796 1, 822,202 2,288,538 466,336 48.1 & 21 1,628,507 3,115, 290 4,743,797 569,977 1,246,116 1, 816,093 2,301,231 485,138 48. 5 28 1,643,221 3,090,748 4,733,969 575,129 1, 230,299 1811,428 2,319,974 508,546 49. 0 Feb 4 1,645,031 3,075, 750 4,720,781 575,760 1,230,301 1806,061 2,326,127 520,066 49.3 © 11 1,670,653 3,050,416 4,721,069 584,729 1,220,167 1804,896 2,342,198 537,302 49. (') 18 1,645,118 3,037,444 4,682,562 575,791 1,214,976 1790,767 2,352,990 562,223 50. 3 25 1,671,597 3,051, 706 4,723,303 585,059 1,220,683 1 805,742 2,356, 999 551,257 49.9 w Mar 4 1,636,797 3,042,611 4,679,408 572,880 1,217,044 1789,924 2,375,763 585,839 50. 8 11 1,705,189 3,005, 840 4,711,029 596,815 1,202,338 1 799,153 2,397,924 598,771 50.9 18 1,774,635 2,962,880 4,737,515 621,122 1,185,152 1806,274 2,414,789 608,515 51. 0 < 25 1, 840,887 2,930,729 4*771,616 644,311 1,172,293 1,816,604 2,421,977 605,373 50.8 W Apr. 1. 1,789,233 2,908,153 4,697,386 626,232 1,163,263 1,789,495 2,461,231 671,736 52.4 o 8. 1,745,316 2,893,964 4,639,280 610,860 1,157,583 1,768,443 2,481,834 713,391 53.5 15. 1,754,943 2,868,527 4,623,470 614,231 1,147,411 1,761,642 2, 485,077 723,435 53.7 p 22. 1,749,351 2,856, 700 4,606,051 612,275 1,142,682 1,754,957 2, 492,804 737,847 54.1 27. 1,725,890 2,830,118 I 4,556,008 604,063 1,132,047 1,736,110 2,504,763 768,653 55.0 May 4. 1,729,231 2,828,586 4,557,817 605,230 1,131,435 1,736,665 2,519,898 783,233 55.3 11. 1,733,444 2,804,933 | 4,538,377 608,707 1,121,973 1,728,680 2,537,773 809,093 55.9 18. 1,716,642 2,767,415 4,484,057 600,825 1,106,968 1707,793 2,549,134 841,341 56. 8 25. 1,705,956 2,734,804 4,440,760 597,085 1,093,923 1,691,008 2,558,232 867, 224 57. 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

June 1 720,390 2,751,299 4,471,689 G02,136 1,100,520 1,702,656 2,568,825 866,169 57. 4 8 735,057 2,710,723 4,445,780 607,272 1,084,287 1,691,559 2,592,546 900,987 58.3 15 929,227 2,674,435 4,603,662 675,230 1,069,773 1,745,003 2,615,624 870,621 56.8 22 697,247 2,639,319 4,336,566 594,036 1,055,728 1,649,764 2,620,005 970,241 60.4 29 685,788 2,634,475 4,320,263 590,024 1,053,792 1,643,816 2,625,458 981,642 60.8 July 6. 713,152 2,671,916 4,385,068 599,602 1,068,766 1,668,368 2,631,211 962,843 60.0 13 693,991 2,603,833 4,297,824 592,898 1,041,533 1,634, 431 2,647,594 1,013,163 61.6 20 693,019 2,564,512 4,257,531 592,557 1,025,802 1,618,359 2,659,366 1,041,007 62:5 27. 695,274 2,537,617 4,232,891 593,347 1,015,047 1,608,394 2,685,296 1.076,902 63.4 Aug. 3. 705,066 2,536,673 4,241,739 596,773. 1,014,670 1,611,443 2,703,843 1,092,400 63.7 10. 662,472 2,520,784 4,183,256 581,866 1,008,313 1,590,179 2,720,848 1,130,669 65.0 17. 671,249 2,503,642 4,174,891 584,938 1,001,456 1,586,394 2,745,468 1,159,074 65.8 24. 673,631 2,485,914 4,159,545 585,772 994,367 1,580,139 j2,766,156 1,183,017 66.5 31. 690,754 2,481,466 4,172,220 591,763 992,585 1,584,348 2,787,920 1, 203,572 66.8 Sept. 7. 718,068 2,517,563 4,235,631 601,326 1,007,025 1,608,351 2,803,254 1.194,903 60. 2 14. 705,831 2,491,651 4,197,482 597,042 996,662 1,593,704 2,834,502 1, 240,798 67.5 21. 691,610 2,474,676 4,166,286 592,062 989,871 1, 581,933 2,863,096 1,281,163 08 7 28. 717,405 2,457,196 4,174,601 601,091 982,879 1,583,970 2,878,685 1, 294,715 09.0 Oct. 5. 696,332 2,482,313 4,178,645 593,717 992,926 1,586,643 2,882,942 1,296,299 09.0 11. 724, 865 2,476,311 4,201,176 603,702 990,524 1,594, 226 2,876,933 1,282, 707 08.5 19. 717,444 2,440,862 4,158,306 601,107 976,346 1,577,453 2,921,760 1,344,307 70.3 20. 738,556 2,408, 779 4,147,335 608,495 963,512 1,572,007 2,937,148 1,365,141 70.8 Nov. 2. 1,742,338 2,408,122 4,150,460 609,818 963,247 1,573,065 2,945,671 1,372,606 71.0 9. 1,726, 865 2,420, 831 4,147,696 604,403 968,331 1,572,734 2,960,783 17 388,049 71.4 16. 1,737,716 2,398,224 4,135,940 608,202 959,289 1,567,491 2,969,468 1,401,977 71.8 23. 1,728,497 2,389,916 4,118,413 604,977 955,967 1,560,944 2,978,228 1, 417,284 72.3 30. 1,742,830 2,366,006 4,108,836 609,990 946,402 1,550,392 2,989,142 1,432,750 72.7 Dec. 7. 1,718,283 2,373,355 4,091,638 601,399 J 949,343 1,550,742 2, 990,633 1,439,891 73.1 14. 1,742,760 2,393,777 4,136,537 609,967 I 957,510 1,567,477 3,001,586 1,434,109 72.0 21. 1,784,750 2,447,560 4,232,310 624,063 979,023 1, 003,080 2,993,060 1,389,374 70.7 28. 1,764,524 2,443,497 4,208,021 617,585 I 977,400 1,594,985 2,992,200 1,397,215 71.1 Net deposits are shown to Mar. 11, inclusive, and total deposits after that date. For total deposits prior to Mar. 18, as recalculated, see page 144. Oi Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

156 EEPOBT OF THE FEDERAL RESERVE BOARD. RESERVE RATIO OF FEDERAL RESERVE BANKS 1920 - 1921 ( END OF MONTH FIGURES ) PER I SYTSFK PER CENT i | CENT 80 80 ~—^«*>> 70 ! i 70 60 60 50 ztt 50 40 4-0 30 30 i I 20 20 10 - 10 . .! . .1. , 1 . 4 ii • ACTUAL 1920 1921 •ADJUSTED 100 100 90 CHICAGO _ST. LOUIS _ MINNEAPOLIS 90 80 80 70 — 70 60 yv 60 50 50 40 J z: i —s / 40 30 V /' N / 30 20 / 20 10 10 0 0 100 100 90 . KANSAS CITY .DALLAS. kN 1•HANCISCo_ 90 80 80 70 70 60 60 50 A 50 40 40 30 ! 30 20 M L 20 10 10 0 - 0 1920 1921 1920 1921 192O 1921 Adjusted percentages are calculated after increasing or reducing reserves held - by the amount of accommodation extended to or received from other Federal Digitized for FRASER Reserve Banics. See page 42. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 18.—CASH RESERVES, TOTAL EARNING ASSETS, DEPOSITS, FEDERAL RESERVE NOTE CIRCULATION, AND RESERVE PERCENTAGE, BY MONTHS DURING 1921, 1920, AND 1919. [Average daily figures. Amounts in millions of dollars.] 1. 3. 5. Cash reserves. Total earning assets. Deposits.1 |F. K. notes in circulation. Reserve percentage Month. O O 1921 1920 1919 1921 1920 1919 1921 1920 1919 1921 1920 1919 1921 1920 1919 o M 1 H January... 2,287 2,098 2,164 3,034 3,044 2,214 1,634 1,790 1,618 j 3,178 2,888 2,541 47.5 44.9 52.0 M o February.. 2,344 2,053 2,184 2,869 3,154 | 2,226 1,660 1,797 1,693 3,069 2,947 2,463 49.6 43.3 52.5 3 March 2,403 2,058 2,202 2,736 3,212 2,318 1,809 1,783 1,768 2,979 3,040 2,503 50.2 42.7 51.6 April 2,485 2,084 2,225 2,527 3,192 I 2,342 1,750 1,770 1,734 2,871 3,072 2,548 53.8 43.0 52.0 May 2,542 2,079 2,246 2,354 3,256 j 2,392 1,717 1,811 1,804 2,787 3,090 2,534 56.4 42.4 51.8 Tune 2,606 2,103 2,248 2,175 3,210 2,324 1,723 1,748 1,770 2,683 3,114 2,501 59.1 43.3 52.6 July 2,655 2,119 2,177 2,013 3,201 2,479 1,696 1,706 1,795 2,605 3,143 2,524 61.7 43.7 50.4 August 2,740 2,127 2,146 1,842 3,234 2,443 1,691 1,699 1,748 2,512 3,165 2,544 65.2 43.7 50.0 September. 2,836 2,139 2,158 1,740 3,329 2,472 1,716 1,665 1,658 2,494 3,276 2,627 67.4 43.3 50.4 October... 2,906 2,162 2,207 1,641 3,390 2,709 1,728 1,681 1,810 2,456 3,337 2,738 69.4 43.1 48.5 November. 2,964 2,183 2,185 1,520 3,375 2,908 1,733 1,668 1,854 2,402 3,328 2,812 71.7 43.7 46.8 December. 2,995 2,222 2,150 1,517 3,314 3,034 1,755 1,622 1,744 2,416 3,343 2,955 71.8 44.7 45.7 Year 2,649 2,119 2,191 | 2,160 3,243 2,487 1,745 1,728 1,750 2,702 3,146 2,609 59.6 43.5 50.3 1 Net deposits are shown up to and including February, 1921, and total deposits after that month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 19.—AVERAGE DAILY HOLDINGS OF DISCOUNTER PAPER, BY MONTHS DURING 1921. [In thousands of dollars.] 00 Feder B al a R n e k s . erve January. F a e r b y ru . - March. April. May. June. July. August. Se b pt e e r m . - October. No b v e e r. m- De b c er e . m- Y 19 e 2 a 1 r . Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . Boston 144,458 127,645 142,903 116,670 100,311 98,255 80,462 82,461 93,237 75,477 69,058 66,073 99,581 169,800 142,386 New York... 872,847 907,566 777,122 638,328 565,297 454,981 425,565 392,668 301,278 272,844 218,906 221,675 501,877 847,434 726,895 3 Philadelphia. 150,904 149,775 152,192 140,125 145,237 141,472 121,761 113,654 104,158 100,971 90,640 89,316 124,879 190,122 193,195 Cleveland 173,786 128,605 129,674 143,903 140,617 146,389 149, 454 135,060 132,667 132,251 123,991 112, 269 137,468 179,810 126,649 W H Richmond 112,672 107, 750 110,150 114,809 108,921 103,397 102,683 99,762 99,824 95,980 97,963 95,592 104,097 104, 111 94,546 O Atlanta 128,771 126,282 122,358 117,425 108,715 103,498 101,673 102,650 101,201 98,219 94,972 94,460 108,252 115,940 87,910 Chicago 421,314 369,748 387,172 387,687 330,514 312,110 300,119 227,034 216,335 209,530 185,473 187,792 294,161 417,189 209,114 W St. Louis j 103,355 91,389 88,873 81,897 75,793 82,133 83,764 73,077 74,352 70,135 64,895 64,149 79,427 109,497 68,688 Minneapolis 81,864 80,677 70,016 72,769 72,408 72,425 72,508 71, 731 72,595 71,506 66,606 57,193 71,794 76,082 41,759 Kansas City.... 110, 754 103,356 99,265 97,274 85,079 80,578 78,285 67,117 69,151 74,120 78,044 74,272 84,660 106,405 83,003 O Dallas 70,816 69,276 65,610 64,137 64,906 63,226 59,623 54,701 55,647 59,346 55,213 52,912 61,238 71,271 52,666 w San Francisco.. 164,564 146,723 158,293 164,958 168,848 159,285 149,265 134,787 125,245 116,535 86,815 69,729 136,871 142,718 81,387 > Total: 1921 2,536,105 2,408,792 12,301,628 |2,139,982 1,966,646 1,817,749 ,725,162 1,554,702 1,445,690 1,376,914 ,232,576 1,185,432 1,804,305 . 1920 2,142,788 2,298,917 12,386,537 2,440,376 !, 537,551 2,461,022 ,519,044 2,605,113 2,677,052 2,782,055 ,776,4572,730,360 J2,530,379 | ' 1919 1,734,655 1,763,226 1,861,532 1,919,461 1,973,926 1,842,112 , 867,920 1,801,887 1,777,334 2,073,416 ,145,631 2,157,021 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AVERAGE DAILY HOLDINGS OF DISCOUNTED BILLS AND OF OTHER EARNING ASSETS BY FEDERAL RESERVE BANKS, DURING 1920 AND 1921 MILLIONS O s H O o 1920 1921 1920 1921 1920 1921 1920 1921 1920 1921 1920 1921 1920 1921 1920 1921 1920 1921 1920 1921 1920 1921 1920 1921 DALLAS MINNEAPOLIS ST. LOUIS KANSAS CITY RICHMOND ATLANTA BOSTON PHILADELPHIA S.FRANCISCO CLEVELAND CHICAGO NEW YORK Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 20.—HOLDINGS OP DISCOUNTED BILLS ON DEC. 28, 1921, DISTRIBUTED BY MATURITIES. [In thousands of dollars.] Maturity. Federal Keserve Bank. Total. Within 15 16 to 30 31 to 60 61 to 90 After 90 days. days. days. days. days. I Boston 68,933 50,837 6,598 4,628 32 New York.... 213,057 196,233 4,345 7,410 5,038 31 Philadelphia., 90,316 78,938 3,779 5,144 2,430 25 Cleveland 110,397 65,934 12,767 19,682 11,502 512 Richmond 97,913 57,342 13,980 16,912 9,116 563 1 Atlanta 94,426 43,491 14,235 19,288 15,470 1,942 Chicago , 19G, 053 82,996 21,952 36,187 40,370 14,548 St. Louis 66,029 30,271 9,014 12,190 13,089 1,465 Minneapolis... 52,339 14,559 7,330 9,563 6,947 13,940 Kansas City... 67,717 22,072 8,395 13,335 9,523 14,392 Dallas 51,391 20,973 6,766 7,295 7,029 9,328 San Francisco. 71,262 44,715 7,529 7,358 6,794 4,866 Total.... 1,179,833 708,361 116,690 161,202 131,936 61,644 tel w 1 b Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 21.—HOLDINGS OF DISCOUNTED BILLS ON THE LAST REPORT DATE OF EACH MONTH DURING 1921, DISTRIBUTED BY MATURITIES. [In thousands of dollars.] Maturity. Date. Total. Within 15 16 to 30 31 to 60 61 to 90 Over 90 days. days. days. days. days. O 1921. d Jan.28 ; 2,456,475 1,453,331 235,415 419,912 293,538 54,279 a Feb. 25 I 2,396,254 1,455,023 222,558 397,788 283,234 37,651 Mar. 25 '; 2,286,648 1,362,700 234,427 369,200 278,264 42,057 o Apr. 27 2,063,739 1,229,368 201,058 364,964 218,399 49,950 May 25 1,870,256 1,108,808 188,845 322,907 179,564 70,132 June 29 1,771,562 1,032,489 165,256 271,088 213,178 89,551 July 27 1,650,496 943,796 156,985 281,629 198,559 69,527 Aug. 31 1,491,935 859,576 155,111 279,433 164,105 33,710 Sept. 28 1,402,903 801,282 162,980 240,134 165,618 32,889 Oct. 26 1 1,308,749 771,132 143,281 229,112 129,937 35,287 Nov. 30 1 1,182,301 699,318 133,324 171,417 122,039 56,203 Dec. 28 | 1,179,833 708,361 116,690 161,202 131,936 61,644 Dec. 30,1920 j 2,719,134 1,632,885 280,406 430,676 | 311,619 63,548 Dec. 26,1919 j 2,194,878 1,484,790 244,890 292,715 | 152,125 20,358 in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 22,—HOLDINGS OF DISCOUNTED BILLS SECURED BY UNITED STATES GOVERNMENT OBLIGATIONS ON THE LAST REPORT DATE OF EACH MONTH DURING 1921. to [In thousands of dollars.] Secured bv- Member I Date. Total. co b n l a o l n a te t k e s s r . ' a l j j Cu p s a t p o e m r e . rs' b U o . n d S s . . V n i o c t t e o s r . y Tr n e o a t s e u s. ry C o e f e r d i ti n n f d e ic s e a s b t . e t- s n o 1921. H Jan. 28 1,048,768 815,019 233,749 607,060 283, 157.749 O Feb. 25 1,003,975 778,117 225, 858 577,506 291, 134.750 H Mar. 25 1,010,373 790,014 220,359 650,118 265, 94,491 M Apr. 27 920,537 712,779 207, 758 588,672 268, 63,209 May 25 793,951 612,421 181,530 516,802 223, 53, 434 June 29 647,761 536,823 110,938 436,083 170, 2,847 38,502 July 27 591, 215 492,160 99,055 406,458 154, 3,184 I 27,259 Aug. 31 545,176 463,123 82,053 374,762 140,384 3,200 26,830 Sept. 28 490,927 420,402 70,525 346,945 110,807 6, 261 26,914 Oct. 26 461,886 410, 721 51,165 331,475 94, 509 17,236 18,666 N ov. 3 0 1 476,360 427,464 48,896 338,425 77,685 30,356 29, 894 Dec. 28 487,193 444,244 42,949 345,372 66,671 26,026 49,124 Dec. 30, 1920 1,141,036 869,510 271,526 648,352 304,686 187,998 w Dec. 26, 1919 1,510,364 1,157,766 352,598 732,401 337, 663 440,300 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 23.—BILLS SECURED BY UNITED STATES GOVERNMENT OBLIGATIONS UNDER DISCOUNT FOR MEMBER BANKS IN OWN DISTRICT ON DEC. 28, 1921, AND DEC. 30, 1920. [In thousands of dollars.] Secured by— Total (all classes). o Federal Reserve Bank. United States bonds. Victory notes. Certific e at d e n s e o s f s . indebt- o 1921 1920 1921 1920 1921 Boston 26,515 68,741 20,892 44,227 402 New York 141,863 445,926 60,785 211,399 158 Philadelphia.. 70,213 113, 922 59,627 59,570 991 Cleveland 42,709 54,176 34,338 42;117 801 ft Richmond 42,931 53,288 36,438 38,311 905 ft Atlanta 25,346 65,883 21,798 48,331 317 Chicago 60,344 142,623 47,029 74,859 659 St. Louis 23,533 44, 707 IS, 977 29,689 222 Minneapolis 7,525 24,222 6,281 13,650 464 Kansas City... 15,741 43,897 13,849 22,695 602 Dallas 9,512 34,028 6,305 28,257 972 San Francisco. 20,961 49,623 19,053 35,247 i 178 Total.... 487,193 1,141,036 345,372 648,352 i 66,671 304,686 187,998 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 34,—-HOLDINGS OF DISCOUNTED BILLS ON DEO. 31, 1921, DISTRIBUTED BY CLASSES. [In thousands of dollars.] Member banks* Customers' I collateral notes. Bankers' acceptances. Trade acceptances. Federal Reserve Bank. (all T c o la t s a s l e s). , I s U o e e b c r . p u l n S i a r g m p . e a e G d e ti r n o o b t n v y s - I . | ! U S e e . c r S u n . r m e G d e o n b v t y - O s t e h c e u r r w ed is . e c C i n a o . l m e p . m a s p e . e r- r A p t g a u r p r ic a e u l r. l- Li p v a e p -s e t r o . ck Foreign, j Domestic. ex D ch o a ll n a g r e. Foreign. | Domestic. | ; obligations. no Boston 59,171 4,856 16,677 36,638 855 142 New York 209,080 2,621 153,393 51,596 863 607 Philadelphia... 88,552 10,460 56,155 21,103 718 116 Cleveland 114,594 3,163 43,005 15 64,131 1,097 2,503 Richmond 94,668 2,408 38,639 1,337 40,763 9,170 3 2,348 Atlanta 90,827 4,702 19,718 327 51,074 12,465 1,053 1,488 Chicago 185,520 5,017 54,815 618 78,497 46,025 1 547 St. Louis 63,053 2,762 19,069 33 31,815 7,637 843 284 610 Minneapolis 51,212 526 6,763 1,932 14,028 22,042 5,669 252 Kansas City.... , 69,979 1,937 15,902 22;830 8,374 20,834 102 Dallas 50,597 285 8,677 1,964 12,320 13,320 13,283 748 GO San Francisco. 67,093 2,774 10,909 11,526 27,536 6,471 7,302 50 517 to Total.... 1,144,346 ; 41,511 443,722 17,752 | 452,331 129,037 49,670 50 9,980 w o IS d Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 25.—HOLDINGS OF DISCOUNTED BILLS ON THE LAST DAY OF EACH MONTH DURING 1921, DISTRIBUTED BY CLASSES. [In thousands of dollars.] Member banks' Bankers' acceptances. Trade acceptances. Customers' collateral notes. Date. (all T cl o a t s a s l es). o s U e b e . c r l p u i S n g a r . m p a e G t d e e i r o n o b n t v y s - . S U e e . c r S n u m . r e G d e n o b v t y - O s t e h c e u r r w ed is . e c C ia o l m p m ap e e r- r A p t g a u r p r ic a e u l r. l- Li p v a e p -s e t r o . ck | Foreign. Domestic. ex D ch o a ll n a g r e. Foreign. Domestic. a o obligations. i 1921. o Jan. 31 2,457,116 230,189 810,178 14,330 1,143,436 140,815 88,233 8,419 3,912 175 115 17,314 Feb. 28 2,389,510 224,605 773,360 13,031 1,127,798 136,679 83,654 10,335 3,086 540 16,422 o Mar.31 2,233,106 204,707 766,393 15,789 994,965 140,987 81,693 8,787 4,183 256 15,264 Apr. 30 2,076,568 211,106 726,546 12,137 869,732 149,223 81,187 7,665 2,471 117 16,334 1 May 31 1,907,913 159,563 627,681 12,006 855,608 152,749 76,718 7,803 1,639 134 13,982 June 30 1,751,350 113,803 523,787 15,226 842,096 157,871 76,258 7,779 677 80 13,773 July 30 1 1,641,612 96,277 481,497 12,104 801,491 157,454 72,883 5,476 613 85 13,732 Aug. 31 1 1,491,935 82,053 463,123 16,242 695,691 157,394 65,033 635 1,080 104 10,580 Sept. 30 | 1,413,013 67,870 428,974 18,048 671,810 152,251 63,749 503 342 91 9,375 Oct. 31 1,313,027 49,485 412,951 17,553 621,900 141,923 57,154 570 304 25 54 11,108 Nov. 30 1,182,301 48,896 427,464 17,350 486,313 139,164 51,715 55 392 16 10,936 i Dec. 31 1,144,346 41,511 443,722 17,752 452,331 129,037 49,670 50 5 9,980 Dec. 30,1920. 2,719,134 271,526 869,510 17,907 1,274,606 143,145 103,795 17,218 21,427 Dec. 26,1919. 2,194,878 352,589 1,157,765 8,255 576,025 24,825 26,243 15,479 33,697 OS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 26.—AVERAGE DAILY HOLDINGS OF PURCHASED PAPER, BY MONTHS DURING 1921. [In thousands of dollars.] Feder B a a l n R k e . serve January. ru F a eb ry - . March. April. May. June. July. August. Se b p e te r. m- October. No b v e e r. m- D b ec e e r. m- Y 19 e 2 a 1 r . Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . Boston . 17,155 18,038 12,425 7,224 10,088 10,746 6,725 5,663 3,404 4,322 6,093 8,920 9 187 27 692 25,350 New York 75,496 18,611 37,722 42,951 39,351 19,568 7,686 18,102 20,409 26,997 37,080 47,353 32 754 146 371 78,282 Philadelphia . 10,697 21,840 14,964 14,638 10,209 7,826 2,109 2,086 2,199 4,025 8,759 11,686 9,159 9,810 1,581 o Cleveland . 28,827 48,128 29,721 18,456 9,139 4,388 1,320 1,476 1,722 2,580 3,153 3,714 12,491 54 067 44,148 H Richmond 5,080 4,520 3,220 2,037 1,850 2,604 1,825 2,048 2,630 3,546 3,779 3,714 3,063 8,320 7,687 o Atlanta 3,527 2*361 1,016 795 1,050 1,078 1,105 1,027 2,514 5,659 5,522 3,843 2,459 6,093 8,038 Chicago 18,930 11,698 10,357 9,993 4,592 3,980 2,831 3,119 2,448 3,839 2,950 4,884 6,613 53,003 49,458 St Louis 814 555 2,186 1,236 565 370 170 249 618 368 1,203 422 730 5,154 12,940 Minneapolis . 2 (l) 3,648 20,682 Kansas City 1,851 794 312 101 51 23 396 985 620 966 1,608 1,480 767 3,888 7,811 Dallas 145 68 4 114 86 172 114 84 43 165 215 178 116 1,334 2,366 San Francisco . 38,391 46,469 26,468 12,827 7,414 3,961 2,114 3,285 3,413 3,729 8,505 19,305 14,478 69,366 66,889 > Total: 1921 200,913 173,082 138,397 110,372 84,395 54,716 26,395 . 38,124 40,020 56,196 78,867 105,499 91,817 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 ., . 280,732 276,087 262,787 208,905 189,768 246,158 362,298 371,091 353,936 340,189 455,057 549,959 325,232 i Less than $500. w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 27.—HOLDINGS OF PURCHASED BILLS ON DEC. 28, 1921, 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 . 30 3 d 1 a t y o s . 60 m 61 o t o n d t a 3 h y s s . 6 w O m b i v o t u e h n t r i , t n 3 hs Federal Reserve Bank. Total. 1 W 5 i d th a i y n s. 1 d 6 a y to s . 30 3 d 1 a t y o s 6 . 0 m 61 o t o n d t a 3 h y s s . w O b i v t u e h r t i n 3 p 6 months. o Boston , 12,140 3,722 3 370 3 656 1,392 St. Louis. 148 107 I 14 13 14 H i—i New York... 47,313 35,674 7 251 3 893 495 Minneapolis.. o Philadelphia, 1-5,277 2,917 3 122 8 296 942 Kansas City... 1,400 671 523 185 21 Cleveland 4,689 1,858 1367 1464 Dallas 165 150 15 o Richmond... 3,346 622 1294 1045 385 San Francisco. 20,822 10,659 5,421 3,945 782 15 Atlanta 3,644 862 847 1304 631 Chicago 5,296 1,064 1534 2 261 437 Total.... 114,240 58,306 24,743 26,062 5,114 15 ft w W Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 28.—HOLDINGS OF PURCHASED BILLS ON THE LAST REPORT DATE IN EACH MONTH DURING 1921, DISTRIBUTED BY MATURITIES. [In thousands of dollars.] 00 Maturity. Maturity. Total. 1 W 5 i d t a h y in s. 1 d 6 a t y o s . 30 3 d 1 a t y o s . 60 m 61 o t o n d t a 3 h y s s . 6 w O m b i v o t u e h n t r i t n h 3 s. Total. 1 W 5 i d t a h y in s. 1 d 6 a t y o s . 30 3 d 1 a t y o s . 60 m 61 o t o n d t a 3 h y s s . 6 m w O b i v o t u e n h r t t i n h 3 s. w O 1921. 1921. w Jan. 28 165,058 66,424 41,456 48,117 9,061 Sept. 28 38,889 19,782 8,582 6,677 3,687 161 H Feb. 25 170,503 63,335 44,213 43,348 19,607 Oct. 26 62,316 33,351 12,261 10,602 5,766 336 O Mar.25 123,056 47,033 25,264 36,510 14,249 Nov. 30 72,954 34,582 11,526 16,935 9,895 16 Apr. 27 103,609 58,175 21,429 18,060 5,945 Dec. 28 114,240 58,306 24,743 26,082 5,114 15 May 25 87,138 56,289 16,408 12,148 2,293 June 29 31,601 16,225 7,706 4,760 2,910 Dec. 30,1920. 255,702 87,030 64,745 76,805 27,122 July 27 19,424 9,675 2,951 3,259 3,536 Dec. 26,1919. 585,212 123,723 100,061 209,280 152,148 Aug. 31 35,320 19,876 5,619 6,987 2,838 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 29,—HOLDINGS OF PURCHASED BILLS ON DEC. 31, 1921, DISTRIBUTED BY CLASSES OF ACCEPTING INSTITUTIONS. [In thousands of dollars.] Bankers' acceptances. Trade acceptances. Member banks. Non- Federal Reserve Bank. Total. member Branches o Total. National. na N ti o o n n - al. b b c a o a n r n k p k s o i a r n a n g - d P b r a i n v k a s te . ag f b e o n a r c n e i i k e g s s n . of Total. Foreign. Domestic. o u tions. I—I o Boston 13,149 13,149 8,505 4,378 Ill 144 11 New York 72,593 72,518 26,242 25,593 8,066 8,853 3,764 75 75 Philadelphia 15,895 15,895 7,095 4,608 1,669 1,055 1,468 Cleveland 5,378 5,378 1,579 1,253 791 370 1,385 Richmond 3,558 3,558 3,548 10 Atlanta 3,686 3,686 1,027 2,659 Chicago 8,489 8,489 3,054 4,902 408 50 75 St. Louis 218 218 50 168 Minneapolis Kansas City 1 337 1 337 1 193 144 Dallas 165 165 165 San Francisco 20,795 20,652 7,715 6,376 2,611 1,847 2,103 143 143 Total: Dec. 31,1921 145,263 145,045 60,173 50,091 13,656 12,319 8,806 218 218 Dec. 31, 1920 260,406 258,878 169,387 38,374 24,905 26,212 1,528 505 1,023 Dec. 31,1919 574,103 566,369 405,339 65,334 55,537 40,159 7,734 2,540 5,194 o CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 30.—HOLDINGS OF PURCHASED BILLS AT THE END OF EACH MONTH IN 1921, DISTRIBUTED BY CLASSES OF ACCEPTING INSTITUTIONS. [In thousands of dollars.] Bankers' acceptances. Trade acceptances. Member banks. Non- Month ending— Total. member Branches Total. Non- b b a a n n k k s i a n n g d P b r a i n v k a s t . e ag f e o n a r c n e i i d e g s n of Total. Foreign. Domestic. Nationa national. corpora- banks. tions. 1921. January 163,700 162,385 55,914 33,326 32,372 18,055 22,718 1,315 896 419 February 169,421 169,049 59,259 37,055 33,768 18,458 20,509 372 347 25 March 119,340 119,053 40,403 25,464 20,653 15,878 16,655 287 287 April 109,763 109,142 33,981 28,346 18,341 13,915 14,559 621 621 May 75,457 75, 239 28,444 18,310 10,053 9,517 8,915 218 218 June 40,223 40,130 15,280 11,507 6,960 3,391 2,992 93 93 July 17,977 17,912 6,990 6,421 3,087 1,034 380 65 65 August 35,320 35,278 14,762 10,394 5,638 3,022 1,462 42 42 September 45,042 44,916 17,767 15,859 4,813 2,635 3,842 126 126 October 86,110 86,055 34,032 30,854 11,746 6,488 2,935 55 55 November 72,954 72,824 30, 208 23,282 8,873 4,960 5,501 130 130 December. 145,263 145,045 60,173 50,091 13,656 12,319 8,806 2 IS 218 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 31.—AVERAGE BATLY HOLDINGS OP UNITED STATES SECURITIES, BY MONTHS DURING 1921. [In thousands of dollars.] Feder B al a n R k e . serve 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 21 a . r Y 19 e 20 a . r Y 19 e 19 a . r Boston 22,523 22,100 22,426 21,352 22,306 21,990 19,648 19,045 18,490 15,282 12,559 13,028 19,212 25,152 18,217 a o New York 67,093 60,938 69,696 60,739 88,769 88,746 64,653 60,392 79,322 I 58,965 74,003 93,829 72,318 82,036 74,104 Philadelphia 33,016 32,366 33,241 31,420 31,143 31,371 28,568 27,714 24,387 | 19,190 15,850 15,454 26,946 33,956 23,263 Cleveland 24,965 24,644 26,944 24,704 26,572 26,019 22,664 21,296 21,444 | 1*6,472 11,775 13,282 21,716 27,401 20,389 Richmond 14,076 13,495 13,689 13,628 13,155 10,427 8,429 7,203 6,577 | 4,993 4,993 5,058 9,620 13,773 9,206 o Atlanta 16,944 16,782 16,782 16,614 16,265 24,156 24,318 20,502 18,953 I 18,963 18,952 19,700 19,090 15,909 11,289 Chicago 45,357 44,158 44,765 42,796 42,059 41,697 40,384 40,163 36,161 | 30,865 29,768 24,977 38,561 46,865 35,003 o St. Louis 17,187 17,197 14,628 14,446 14.123 14,161 12,919 13,152 12,384 | 10,054 8,666 8,268 13,072 18,566 15,288 Minneapolis 8,596 8,596 8,596 8,615 8,720 8,160 5,720 5;724 5,210 I 5,156 5,126 4,811 6,907 9,026 | 8,677 Kansas City 21,688 21,688 19,342 19,225 19.124 17,374 1.7,213 17,092 17,116 ' 14,694 14,229 14,236 17,728 22,772 i 17,960 Dallas 12,312 12,279 12,295 10,866 8,282 7,163 6,379 6,371 5,272 I 4,543 4,543 4,536 7,878 12,840 10,133 San Francisco... 13,881 13,116 13,354 12,494 12,235 11,446 10,246 10,116 9,448 ! 8,448 8,115 8,826 10,966 15,258 10,524 Total: 1921 297,638 287,359 295,758 276,899 302,753 ! 302,710 261,141 248,770 254,764 I 207,625 208,579 226,005 264,014 1920 325,497 308,619 344,161 331,824 301,789 347,445 318,309 303,288 338,565 I 304,053 320,417 339,140 323,554 j 1919 198,123 186,372 194,103 213,358 228,080 ! 235,722 248,645 269,648 340,246 295,725 307,115 327,244 | 254,053 to > Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 32.—HOLDINGS OP EACH CLASS OF UNITED STATES SECURITIES ON DEC. 31, 1921. Bonds. Certificates of indebtedness. 2 per 3 per Federal Reserve Bank. se T c h u e o r l t i d a ti . l es Total. 2 c o p f o e n r 1 s c 9 o 3 e l 0 n s . t m P 1 c 1 a 9 a 9 e 3 3 s n n 6 8 a t - . o - f lo 4 1 c a 9 e p n 2 n e 5 t o r . f lo 3 1 c a 9 e p n 6 n e 1 t o r . f 1 b 9 c o 4 o c s n 6 n i e - d o v 1 n s n e 9 t o r 4 - 7 f . L 3 l i c o i b e p a e n e n r t r t . y L 4 l i c o b e p a e n n e r t t r . y L 4 l i c o J b e a e p n n r e t t . r y | V no ic t t e o s r . y T n r o 1 e t 9 a e 2 s s 4 u . o ry f i j I Total. c 2 t i o o r p n c f e s u o b e r l t a c a e c u t n s e i . r o k n e n t ot A h l e l r. Boston $11,306, $538,500 $529,000 $9,500 $908,700 $41,000J $9,818,000 $8,450,000 $1,368,000 New York 103,525, 596,200 596,200 3,570,2001 99,359,000 35,400,000 63,959,000 Philadelphia 12,361, 1,433,800 $100 549,200 $48,100 836,400 739,000 10,189,000 10,000,000 189,000 Cleveland 13,681, 889,400 414,800 16,200 458,400 4,455,050 12,000J 8,325,500 8,040,000 285,500 Richmond 4,993, 1,233,400 $915,100 237,000 42,500 38,800 3,760,000 3,760,000 Atlanta 19,442,000 10,876,500 10,300 2 82,250 10,783,950; 8,565,500 8,564,000 *l,500 Chicago 26,643,550 4,489,600 1,862,500 367,300 $1,768,000 $400 427,400 13,750 50,250! 3,626,850 1,488,100J 17,039,00!) 12,667,000 4,372,000 St. Louis 7,932,800 1,153,400 100 153,300 7,400J 6, 772,000 6,569,000! 203,000 Minneapolis 4,565;560 115,560 500 114,800 4,450,000 4,450,000 Kansas City 14,253,350 8,867,250 7,155,000 20,000 825,000 838,500 20,350 8,400 000 5,385,500 5,320,000 65,500 Dallas 4,529;500 2,629,500 1,395,900 1,233,600 1,900,000 1,900,000 San Francisco 10,853.600 210,500 6,050 204,450 2,716,100 7,927,000 7,880,000 47,000 Total: 1921 234,089,110 33,033,610 11,328,600 624,6602,593,000 900 5,270,900 229,200| 12,986,35012!,, 446,300 5,118, 700 183,490,500 113,000,000 l70,490,500 1920 287,026,610 26,309,31014,267,350 906,1602,593,000 900 6,526,300 197,050J .$1,100 1,817,450 72,800 260,644,500 259,375,000 11,269,500 1919 300,106,685 26,836,11015,053,700 927,160 2,593,000 900 6,526,300 114,9001,007,050 613,100 67,575 273,203,000 259,375,000 l13, 828,000 Holdings of securities with circulation privilege: Holdings of securities without circulation privilege: w 2 per cent consols and Panamas $11,953,260 3 per cent loan of 1961 $900 c 3 per cent conversion bonds 5,270,9C0 4 per cent loan of 1925 2,593,000 3i per cent Liberty loan 229,2C0 2 per cent certificates of indebtedness 3113,000,000 4| per cent Liberty loan 12,986,350 3f per cent Victory notes 11,100 Total 127,546,260 4f per cent Victory notes 12,435,200 Treasury notes of 1924 h'iis'700 Treasury certificates of indebtedness 70,490* 500 Total 106,542,850 1 Exclusive of a $1,000 Treasury savings certificate having a value of $894 on Dec. 31,1921; $870 on Dec. 31,1920; and $846 on Dec. 31,1919. 2 Includes $32,650 of 3£ per cent bonds and $10,730,200 of 4J per cent bonds, the book value of which was $32,421.45 and $10,167,429.60, respectively, on Dec. 31, 1921. 3 Circulation privilege for Federal Reserve Bank notes only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 33.—AVERAGE DAILY HOLDINGS OF ALL CLASSES OF EARNING ASSETS, BY MONTHS DURING 192.1. [In thousands of dollars.] Fede B ra a l n R k e . serve January. F a e r b y r . u- March. April. May. June. July. August. Se b p e t r e . m- October. No b v e e r. m- De b c e e r m . - Y 19 e 2 a 1 r . Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . Boston 184,136 167,784 177,753 145,246 132,705 130,991 106,835 107,170 115,130 95,082 87,709 88,021 127,981 222,644 185,953 p New York 1,015,436 987,115 884,541 742,018 693,417 563,295 497,904 471,162 401,009 358,806 329,989 362,857 606,949 1,075,841 879,281 Philadelphia 194,616 203,981 200,397 186,183 186,589 180,669 152,438 143,453 130,744 124,185 115,258 116,531 160,990 233,888 218,039 o Cleveland 227,578 201,377 186,340 187,062 176,327 176,796 173,438 157,831 155,834 151,303 138,918 129,265 171,675 261,278 191,186 H Richmond 131,828 125,766 127,059 130,474 123,925 116,428 112,937 109,014 109,030 104,520 106,735 104,364 116,780 126,204 111,439 i—i O Atlanta 149,243 145,425 140,156 134,835 126,030 128,732 127,096 124,180 122,668 122,841 119,446 118,002 129,800 137,942 107,238 Chicago 485,601 425,603 442,294 440,476 377,165 357,787 343,334 270,317 254,944 244,233 218,191 217,653 339,335 517,057 293,574 St. Louis 121,355 109,141 105,686 . 97,579 90,482 96,663 96,854 86,478 87,355 80,557 74,765 72,839 93,229 133,217 96,915 Minneapolis 90,460 89,273 78,615 81,384 81,128 80,585 78,228 77,455 77,805 76,666 71,745 62,071 78,708 88,756 71,119 Kansas City 134,294 125,837 118,919 116,600 104,254 97,976 95,893 85,193 86,887 89,781 94,121 90,104 103,185 133,065 108,774 Dallas 83,273 81,623 77,910 75,117 73,274 70,561 66,117 61,156 60,962 64,054 59,971 57,626 69,232 85,445 65,165 San Francisco 216,835 206,308 196,114 190,279 188,498 174,692 161,625 148,187 138,106 128,712 103,435 97,861 162,315 227,342 158,800 Total: 1921 3,034,655 2,869,233 2,735,784 2,527,253 2,353,794 2,175,175 2,012,699 1,841,596 1,740,474 1,640,740 1,520,283 1,517,194 2,160,179 1920 3,043,952 3,153,994 3,211,936 3,191,945 3,255,859 3,209,650 3,200,973 3,233,862 3,329,481 3,390,089 3,375,395 3,313,502 | 3,242,679 1919 2,213,511 2,225,686 2,318,422 2,341,724 2,391,774 2,323,992 2,478,863 2,442,627 2,471,515 2,709,330 2,907,803 3,034,224 | 2,487,483 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 34.—ANNUAL RATES OF EARNINGS ON TOTAL EARNING ASSETS, BY MONTHS DURING 1921. [Per cent.] 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- D b ec e e r. m- Y 19 e 2 a 1 r . Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . Boston. 5.94 5.86 5.90 5.83 5.52 5.41 5.26 5.06 5.09 4.84 4.62 4.31 5.42 5.48 4.01 New York 6.15 6.26 6.22 6.07 5.95 5.71 5.52 5.19 5.03 4.69 4.38 4.20 5.69 5.59 4.00 g Philadelphia 5.12 5.13 5.11 5.09 5.08 5.08 4.98 4.85 4.87 4.73 4.39 4.25 4.95 5.02 3.92 Cleveland 5.75 5.56 5.52 5.53 5.46 5.45 5.49 5.33 5.18 5.16 5.02 4.84 5.39 5.45 4.02 H Richmond 5.55 5.58 5.58 5.53 5.51 5.59 5.70 5.74 5.77 5.81 5.66 5.31 5.61 5.29 4.16 O Atlanta 5.79 S. 92 5.79 5.80 5.77 5.58 5.47 5.58 5.61 5.60 5.40 5.19 5.63 5.33 4.03 Chicago 6.02 6-16 6.19 6.22 6.18 5.96 5.87 5.79 5.57 5.56 5.36 5.04 5.91 5.75 4.02 St. Louis 5.45 5.58 5.39 5.48 5.65 5.66 5.65 5.43 5.44 5.51 4.94 4.75 5.43 5.29 3.92 Minneapolis 6.29 6.24 6.17 6.21 6.18 6.13 6.21 6.22 6.10 6.00 5. 65 5.41 6.09 5.76 4.11 Kansas City 5.65 5.51 5.51 5.51 5.48 5.50 5.43 5.19 5.29 5.35 5.18 4.88 5.39 5.38 4.26 Dallas.. 5.33 5.18 5.53 5.86 6.17 6.22 6.12 5.99 5.98 5.96 5.74 5.52 5.79 5.14 4.28 Ban Francisco 5.73 5.75 5.72 5.72 5.72 5.71 5.72 5.47 5.38 5.31 5.00 4.70 5.56 5.49 4.26 All banks: 1921. 5.88 5.92 5.90 5.85 5. 79 5.67 5.60 5.42 5.35 5.25 4.99 4.74 5.61 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 W O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 35.—AVERAGE ANNUAL RATE OP EARNINGS ON DISCOUNTED BILLS AND ON PURCHASED BILLS. [Per cent.] Discounted bills. Purchased bills. 1916 1917 1918 1919 1920 1921 1916 1917 1918 1919 1920 1921 Q O Boston : 3.52 3.66 4.01 4.21 5.91 6.03 2.22 3.25 4.19 4.25 5.81 5.61 tzj New York . . 3.69 3.12 4.04 4.12 5.88 6.13 2.38 3.33 4.07 4.25 5.69 5.59 3 Philadelphia . . 3.75 3.73 4.29 4.13 5.48 5. 49 2.31 3.18 4.12 4.24 5.85 5.61 H Cleveland 4.25 3 94 4.28 4.22 5. 88 5. 85 2.29 3. 24 4. 20 4.27 5. 67 5. 90 o Richmond... 4.00 3.91 4.40 4. 34 5.69 5 92 3 09 3. 22 4.27 4. 57 5. 74 6.03 Atlanta , ,.' 3. 77 3.99 4. 27 4. 25 5.77 6. 12 2.71 3. 34 1.20 4. 57 5. oo 6.28 o Chicago 4.60 3.85 4.30 4.26 6.17 6.40 2.28 3.11 4. 24 1. 33 5.64 5. 67 St. Louis 4.01 3. xf> 4. 29 4.25 5.97 2.34 3.16 4.18 4.36 5.30 5.68 Minneapolis . 4 SO ...22 4.63 4. 33 6. 22 6. 48 2. 32 3.16 4.36 4. 27 5. 26 Kansas City 4.77 4.14 4.74 4.68 6.05 6. 06 2. 39 3. 20 4. 26 4.36 5. 45 6. 40 Dallas i 4.49 4.48 4.67 4.64 5.67 6.25 3.36 3.40 4.10 4. 79 5. 49 6.10 San Francisco .-•. .. .. 5.01 4.53 4.65 4.51 5. 79 5.82 2.39 3.25 4.20 4.29 5.01 5.70 System 4.20 3.61 4.24 4.23 5.88 6.07 2.36 3.26 4.14 4.30 5. 66 5.70 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

176 REPORT OF THE FEDERAL, RESERVE BOARD. ANNUAL RATES OF EARNINGS ON DISCOUNTED AND PURCHASED BILLS 1916 - 1921 PER SYSTEM PER CENT CENT 6 6 ! / 5 t 5 A- —- 4- 3 3 _y/ i 2 2 ! 1 1 1 - DISCOUNTED BILLS 6191 7191 8191 9191 0291 1291 < -PURCHASED BILLS CLEVELAND RICHMOND ATLANTA [ y\ 1 CHICAGO ST. LOUIS — MINNE/POLIS * \ 1 \ i ! | — _ 1 i i KANSAS CITY DALLAS SAN FRANCISCO — / 5 w L ^r * — — 3 1 03 0> O> O) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 36.—ANNUAL RATES OP EARNINGS ON DISCOUNTED PAPER, BY MONTHS DURING 1921. [Per cent.] Feder B a a l n R k e . serve January. j March. April. May. June. July. I August. Se b p e t r e . m- October. No b v e e r. m- De b c e e r. m- Y 19 e 2 a 1 r . Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . Boston 6.53 6.51 6.50 6.52 6.22 6.07 5.99 5.73 5.66 5.38 5.04 4.64 6.03 5.91 4.21 O New York 6.44 6.54 | 6.56 6.45 6.37 6.30 5.96 5.61 5.59 5.15 4.74 4.53 6.13 5.88 4.12 O Philadelphia.... 5.71 5.65 | 5.66 5.64 5.63 5.64 5.63 5.52 5.50 5.21 4.75 4.54 5.49 5.48 4.13 Cleveland 6.24 6.07 | 6.08 6.06 6.01 6.00 6.00 5.84 5.66 5.55 5.30 5.06 5.85 5.88 4.22 H1 Richmond 5.96 6.00 \ 6.00 5.94 5.92 5.94 6.00 6.00 6.00 6.00 5.83 5.46 5.92 5.69 4.34 o Atlanta 6.27 6.41 ! 6.29 6.32 6.30 6.18 6.07 6.03 6.02 6.01 5.78 5.54 | 6.12 5.77 4.25 Chicago 6.46 6.65 ; 6.67 6.68 6.70 6.47 6.39 6.39 6.17 6.06 5.82 5.36 I 6.40 6.17 4.26 St. Louis 6.00 6.21 | 5.90 6.06 6.31 6.25 6.19 6.02 5.99 5.99 5.31 5. 07 J 5.97 5.83 4.25 Minneapolis 6.73 6.69 | 6.68 6.71 6.59 6.54 6.55 6.39 6.28 5.93 5.69 | 6.48 6.22 4.33 Kansas City 6.32 6.21 i 6.16 6.18 6.22 6.15 5.96 5.99 6.00 5.71 5.37 j 6.06 6.05 4.68 Dallas 5.89 5.72 j 6.16 6.49 6.70 6.68 6.54 6.44 6.32 6.22 6.02 5.80 I 6.25 5.67 4.64 San Francisco 5.97 5.99 5.97 5.96 5.97 5.95 5.97 5.73 5.62 5.54 5.31 5.11 I 5.82 5.79 4.51 All banks: 1921. 6.30 6.37 | 6.36 6.32 6.29 6.20 6.09 5.91 5.85 5.69 5.39 5.11 ». 07 1920. 4.71 5.20 j 5.47 5.58 5.66 5.89 6.13 6.19 6.22 6.35 6.41 6.42 1919. 4.21 4.18 j 4.16 4.16 4.15 4.20 4.15 4.13 4.17 4.15 4.40 4.55 4.23 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 37.—ANNUAL RATES OF EARNINGS ON PURCHASED PAPER, BY MONTHS DURING 1921. [Per cent.] oo Feder B a a l n R k e . serve January. F a e r b y r . u- March. April. May. 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- Y 19 e 2 a 1 r . Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . B oston 6.02 5.95 5.90 5.91 5.76 5.81 5.79 5.28 5.14 4.95 4.62 4.37 5.61 5.81 4.25 New York 6.35 5.91 5.96 5.91 6.05 6.03 6.23 5.22 5.20 4.74 4.82 4.37 5.59 5.69 4.25 Philadelphia 6.04 5.96 5.98 5.90 5.88 5.85 6.05 5.12 5.15 4.87 4.62 4.40 5.61 5.85 4.24 Cleveland 6.03 5.97 6.01 6.02 5.98 5.97 5.95 5.48 5.30 4.93 4.78 4.51 5.90 5.67 4.27 Richmond 6.08 6.10 6.08 6.07 6.08 6.08 6.08 6.07 6. 08 6.08 5.94 5. 68 6.03 5.74 4.57 Atlanta 7.07 7.11 7.09 7.10 6.84 6.29 6. 05 6.01 5. 95 6.07 5.97 5.67 6.28 5.55 4.57 Chicago 5 82 5. 93 6.07 6. 05 5. 82 5. 89 .5 54 5. 30 5.11 4.73 4.56 4.41 5.67 5. 64 4.33 St Louis 6.34 6.73 6 02 6 04 ' 5 86 5 99 5.77 5 41 5.10 4.98 4.57 4 49 5 68 5 30 4 36 Minn6apolis 5 92 5 26 4.27 Kansas City 7.08 7.10 7.10 7.10 7.10 7.10 6.14 6.10 6. 23 6. 00 6.14 5. 87 6.40 5.45 4.36 J Dallas 5 88 5 77 6 24 6 22 6 71 6 (51 6 32 5 93 5 92 6 08 5 96 5 49 6 10 5 49 4 79 San Francisco 5.95 6.00 (5.05 6.06 6.01 5.92 5. 84 5. 44 5.42 5. 03 4.63 4.36 5.70 5.61 4. 29 All banks: 1921 6.14 5 99 6.01 5.97 5.98 5.97 5.96 5.36 5.33 5.04 4.91 4.50 5 70 1920 4.79 5 06 5.47 5.70 5.77 5.98 6.07 6.07 6.06 6. 07 6. 03 6 05 5 66 1919. 4.29 4.25 4.26 4.23 4.25 4.19 4.27 4.22 4.27 4.22 4.33 4 54 4.30 CO o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 38.—ANNUAL RATES OF EARNINGS ON UNITED STATES SECURITIES, BY MONTHS DURING 1921. [Per cent.] Federal Reserve Febru- Septem- Novem- Decem- Year Year Year Bank. January. ary. March. April. May. Juno. July. August. ber. October. ber. ber. 1921. 1920. 1919. Boston 2.08 2.04 2.07 2.09 2.24 2.28 2.06 2.09 2.19 2.15 2.30 2.57 2.16 2.20 2.03 a New York 2.19 2.12 2.58 2.25 3.25 2.62 2.57 2.40 2.88 2.51 3.11 3.33 2.70 2.41 2.55 o Philadelphia 2.15 2.17 2.23 2.26 2.24 2.36 2.12 2.12 2.16 2.15 2.21 2.44 2.22 2.19 2.13 u Cleveland 2.08 2.07 2.22 2.07 2.36 2.32 2.07 2.06 2.21 2.12 2.17 3.03 2.21 2.20 2.21 t—t Richmond 2.09 2.02 2.04 2.03 2.01 2.03 2.02 2.02 i 2.13 2.02 2.02 2.05 2.04 2.01 2.01 o Atlanta 2.03 2.01 2.01 2.05 2.11 2.93 3.02 3.22 I 3.35 3.35 3. 35 3.41 2.79 2.01 2.03 Chicago 2.08 2.12 2.12 2.12 2.16 2.16 2.10 2.47 2.06 2.32 2.59 2.73 2.23 2.12 2.10 St. Louis 2.13 2.18 2.18 2.14 2.09 2.29 2.17 2.17 2.17 2.15 2.20 2.28 2.17 2.11 2.10 Minneapolis 2.04 2.01 2.02 2.03 2.06 2.04 2.12 2.10 2.09 2.06 2.06 2.14 2.06 2.02 2.46 Kansas City 2.12 2.12 2.15 2.14 2.14 2.16 2.15 2.15 2.43 2.01 2.19 2.19 2.16 2.22 2.26 Dallas 2.14 2.12 2.12 2.13 2.05 2.16 2.19 2.19 2.35 2.41 2.26 2.26 2.17 2.11 2.26 Han Francisco 2.32 2.16 2.15 2.08 2.08 2.28 2.11 2. 09 2.18 2.17 2.07 2.21 2.16 2.12 2.27 All banks: 1921 2.13 2.11 2.24 2.15 2.49 2. 40 2.31 | 2.33 2.49 I 2.38 2.68 2.92 2.37 1920 2.18 2.17 2.10 2.10 2.22 2.24 2.15 | 2.22 2.27 | 2.20 2.17 2.43 2.21 1919 2.26 2.31 2.41 2.43 2.42 2.33 2.24 i 2.21 2.17 j 2.18 2.22 2.19 2.26 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISCOUNT AND OPEN-MARKET OPERATIONS OF FEDERAL RESERVE BANKS. 00 o No. 39.—VOLUME OF DISCOUNT AND OPEN-MARKET OPERATIONS OF EACH FEDERAL RESERVE BANK DURING 1921, DISTRIBUTED BY CLASSES. {In thousands of dollars.] Acceptances purchased Bills discounted for member banks. in open market. United States securities purchased. Munici- ft pal 3 Federal Reserve Total (all Agricul- war- Bank. classes). Total. b M l a n a n e o t k e m te r c b a s o e l . l r - e n p R o . a u e p e n d . e t i e s r s - , d . s t l t a u i o v n r c e d a k - l , B a a a c n n c c k e e p e s r t . - s; a a T c n c r c a e e d p s e t . - Total. Bankers.1 Trade. Total. Bonds. V n i o c t t e o s r . y T u re ry as- i c e C n a d e d t n e r e t e s i b s f i t o s - - . f ch r p a a u n s r e t - d s . paper. H W ft Boston ,864,778 4,454,760 2,225,870 I 2,222,806 4,026 153 211,703 211,703 198,315 11 904 6,883 190,517 New York ,239,667 30,768,990 14,318,650 |l6,387,566 6,065 23,192 799,813 793,626 >,187 2,670,864 6,816 1,065 31,143 2,631,840 ft Philadelphia... 162,580 3,872,367 2,528,207 1,338,936 3,189 514 92,353 92,353 197,720 30 2,310 9,282 186,098 140 Cleveland 655,555 3,218,833 2,181,344 988,372 5,734 17,264 87,844 87,598 246 348,878 56 4,445 31 344,346 Richmond 812,016 2,749,671 2,301,990 376,680 59,184 25,345 25,345 37,000 37,000 Atlanta 1,647,255 890,975 672,724 71,054 691 22,128 22,128 19,555 10,812 1,655 73 7,015 w Chicago 538,442 4,168,477 2,227,267 1,737,997 192,620 1,446 138,276 138,276 231,689 7,326 j 13,888 210,475 ft St. Louis 674,828 1,609,024 957,726 585,991 52,192 7,974 20,187 20,187 45,617 171 ! 1,027 44,419 w Minneapolis 736,603 730,662 370,705 250,092 106,266 903 39 39 5,813 175 856 4,782 ft Kansas City 960,337 944,074 604,832 212,645 121,869 212 5,558 5,558 9,949 800 9,149 756 3 Dallas 776,261 771,997 497,863 150,010 120,105 154 694 694 3,570 3,570 w San Francisco.. 031,603 2,823,018 2,123,713 578,296 99,528 4,592 130,461 129,728 733 78,124 2,749 1,915 73,453 o Total: 1921...63,141,608 57,759,128 31,229,142 25,502,115 841,832 57,095 128,944 1,534,401 1,527,235 7,166 3,847,094 17,732 20,800 65,898 3,742,664 1920...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 9 987,978 1919...86,737,067 79,173,970 72,548,008 6,415,899 71,643 138,420 2,825,177 2,788,619 36,558 14,737,920 1,329 428 4,736,163 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 40.—VOLUME OF DISCOUNT AND OPEN-MARKET OPERATIONS, BY MONTHS DURING 1921, DISTRIBUTED BY CLASSES. [In thousands of dollars.] CO g j Acceptances purchased in to Bills discounted for member banks. open market. United States securities. 1 Munici- Month. T c o la t s a s l e ( s a ) l . l Total. b M a l n a n e o t k m e t e r b c a s o e . l l r - c n R p o . a u e p e d n . e i t s e s r - , . d A a p n s t g a d t u r o p r i l c c e a i k v u r l . e l- - B a a a c n n c k c e e p e r t s s - . ' a a T c n r c c a e e d p s e t . - Total. Trade. Total. Bonds. V n i o c t t e o s r . y ! ! I in c C d a n e t e e e r b s t s i s t f e o . i d - f - p c r a h p a l a u n w s r t e - a s d r- . O x Q j January 8,654,134 8,258,163 4,022,668 4,134,847 71,503 8,974 20,171 121,868 120,725 1,143 274,103 11 274,092 February 8,309,185 8,120,849 3,750,090 4,293,279 58,058 6,159 13,263 169,456 167,362 2,094 18,880 March 7,967,010 7,368,268 3,459,181 3,804,034 81,673 11,512 11,868 149,255 148,698 557 449,487 449,487 April 5,084,648 4,912,652 3,144,475 1,677,460 72,448 7,405 10,864 123,511 121,412 2,099 48,485 520 I 47,965 o May 5,040,858 4,253,864 2,601,882 1,557,103 78,622 6,563 9,694 138,601 137,980 621 648,393 8,362 ! 640,031 June 4,799,534 3,674,977 1,991,408 1,586,606 83,160 3,790 10,013 64,673 64,598 75 1,0059,884 1,640 ! 13,624 1,044,620 July 3,847,005 3,735,078 2,136,779 1,524,099 63,585 1,942 8,673 46,670 46,623 47 65,257 4,626 60,631 August 3,663,163 3,513,063 2,054,828 1,392,959 55,034 1,418 8,824 107,303 107,270 33 42,797 240 942 41,615 September. 3,650,263 3,033,109 1,599,557 1,364,465 58,498 2,606 7,983 81,883 81,772 111 535,271 50 11,253 523,968 October 3,729,581 3,489,268 1,861,788 1,543,088 70,862 3,848 9,682 139,081 139,081 101,222 6,846 10 10,775 83,592 10 November. 3,525,792 3,231,271 1,924,211 1,219,474 79,095 640 7,851 161,999 161,821 178 131,859 5 9,178 122,676 663 December.. 4,870,435 4,168,566 2,682,275 1,404,701 69,294 2,238 10,058 230,101 229,893 208 471,456 63 20,785 15,500 435,107 312 Total 63,141,608 57,759,128 31,229,142 '25,502,115 841,832 57,095 128,944 1,534,4011,527,235 7,166 |3,847,094 17,732 [ 20,800 3,742,664 985 O in 00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 41.—VOLUME OF DISCOUNT AND OPEN-MARKET OPERATIONS OF EACH FEDERAL RESERVE BANK, BY MONTHS DURING 1921. 00 [In thousands of dollars.] to Total. Feder B a a l n R k e . serve u J a a r n y - . ru F a eb ry - . March. April. I May. June. Julv. August. Se b p e te r. m- October. No b v e e r. m- De b c e e r. m- 1921 1920 1919 Boston 521,894 548,590 772,882 384,035 446,190 333,569 209,064 311,774 361,689 269,926 348,528 i 356,637 4,864,778 5,734,164 5,096,885 New York 5,789,803 5,692,233 4,631,296 2,568,238 2,351,008 2,066,887 1,871,213 1,688,228 1,561,218 1,718,244 1,538,319 12,762,980 34,239,667 56,518,319 46,793,873 Philadelphia 383,218 328,233 435,206 379,880 400,274 431,835 284,217 316,031 280,490 294,490 288,992 I 339,714 4,162,580 6,218,922 10,803,405 Cleveland 412,391 408,287 361,566 261,154 361,311 372,483 268,060 196,941 231,416 259,639 261,617 260,690 3,655,555 4,068,861 3,672,224 Richmond 247,729 226,995 307.639 295,358 213,118 247,186 211,059 216,410 226,413 202,541 200,050 217,518 2,812,016 3,482,035 4, 224,360 Atlanta 185,274 150,014 164,074 152,514 153,502 132,349 122,118 124,661 137,489 133,016 111,241 122,686 1,688,938 2,290,420 2,086,263 H Chicago 474,436 405,294 556,911 387,789 426,025 455,443 331,867 312,805 333,920 294,722 250,410 308,820 4,538,442 7,198,467 5; 696,847 St. Louis 146,871 124,617 157,862 137,868 139,852 177,169 135,362 120,338 133,338 124,503 151,381 125,667 1,674,82S 2,548,548 2,206,922 Minneapolis 81,980 69,327 66,551 65,359 68,131 68,662 52,388 57,260 52,565 57,555 49,844 46,981 736,603 1,113,147 872,450 Kansas City 100,742 91,629 112,114 91,178 73,095 77,410 69,109 60,347 72,916 81,730 68,476 61,591 960,337 1,813,195 1,613,475 Dallas 92,743 67,374 73,573 64,555 60,495 67,655 59,175 63,453 66,065 62,605 53,515 45,053 776,261 1,465,232 1,256,774 San Francisco 217,053 196,592 327,336 296,720 347,857 368,886 233,373 194,915 192,744 230,610 203,419 222,098 3,031,603 3,776,238 2,413,589 Total: 1921 8,654,134 8,309,185 ;7,967,010 5,084,648 15,040,858 4,799,534 J3,847,005 3,663,163 13,650,263 13,7-29,581 3,525,792 4,870,435 63,141,608 1920 7,186,317 7,122,048 18,770,100 7,474,478 6,452,944 7,800,839 7,518,907 8,366,571 8,447,267 18,013,276 8,715,061 10,659,740 6,527,548 a 1919 7,025,336 5,454,819 15,706,085 6,125,884 7,620,107 6,771,913 7,692,825 6, 808,747 8,801,292 '8,468,032 7,812,081 8,449,946 86,737,067 W o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 42,—VOLUME OF BILLS DISCOUNTED, BY MONTHS DURING 1921. [In thousands of dollars.] Year. FederalJ Rfeesrevrev e I January, i ^u" | March. ! April. | May. | June. | July. ; August, j Seg^" \ October. j N^m" ! 1921 1920 1919 Boston i 495,838 | 523,828 731,710 367,020 372,318 | 257,452 196,235 294,782 330,076 250,223 318,163 | 317,11514, 454, 7604,876,556 4. 675,398 New York J5,565,144 1,5,631,398 4,271,628 |2}469,906 (1,861,356 11,282,758 1,797,401 1,598,704 1,091,256 1/564,586 1,355,335 |2,279,518 30,768,990 50,539.429 42,449,491 Philadelphia | 349,826 | 309,687 399,243 359,861 357,917 I 372,533 282,489 309,970 272,173 281,555 275,545 j 301,568 3,872,367 5,820,258 10,736,435 Cleveland I 391,849 380,694 279,380 252,872 251,956 I 277,891 265,746 193,150 186,036 255,155 258,272 | 225,S32 3,218,833 |2,895,670 3,125,856 Richmond j 228,797 225,300 298,974 292,130 212,392j 243,032 209,408 214,763 214,743 199,602 197,021 | 213,509 2,749,671 J3,346,322 4,130,943 Atlanta |" 180,676 149,510 163,604 150,877 144,519 I 125,806 121,232 123,641 132,044 128,908 109,015 I 117,423 1,647,255 12, 231, 946 2, 005, 778 Chicago ! 423,044 386,882 519,190 374,274 379,304 ; 418,783 323,184 293,919 310,432 272,259 214,202 | 253,004 4,168,477 6,305,492 4,556,312 St. Louis ! 144,240 121,650 154,418 134,976 137,206 I 147,281 134,078 117,532 129,321 121,229 147,058 I 120,035 1,609,024 ;2,438,041 2,100.631 Minneapolis I 81,971 69,310 66,495 65,172 67,366 j 67,996 51,520 56,610 51,865 56,953 49,220 | 46,184 730,662 953,392 661, 521 Kansas City | 99,102 91,428 110,900 90,748 71,982 | 77,147 68,023 59,955 69,967 77,156 I 67,468 60,198 | 944,074jl, 667,943 1,555,597 Dallas | 91,743 67,374 73,452 64,551 60,345| 65,636 59,115 63,433 65,545 62,450 53,315 45, 038I 771,997 1,280,178 1,224,946 > San Francisco j 205,933 163,788 299,274 290,265 337,203 I 338,662 226,647 186,604 179,651 219,192 186,657 189,142 12,823,018 |2,965,647 1,951,062 ^1 Total: 1921 J8,253,163 8,120,849 17,368,268 |4,912,652 4,253,864 3,674,977 |3, 735,078 |3,513,063 |3,033,109 3,489,268 |3,231,271 4,168,566 157,759,128 | H 1920 |6,241,271 6,517,439 6,970,331 6,229,740 6,135,984 6,336,642 16,714,924 7,982,524 17,298,972 7,548,456 J7,882,933 9,461,658 | |85,320,874 O 1919 15,994,382 4,980,936 j5,473,564 15,901,402 7,385,833 6,328,912 17,183,435J6,433,662 16,726,155 8,060,318 J7,414,498 7,290,873 | 79,173,970 3 o 00 co Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 43.—VOLUME OF BILLS DISCOUNTED BY EACH FEDERAL RESERVE BANK DURING 1921, BY MONTHS AND MATURITIES. 00 [In thousands of dollars.] Federal Reserve Bank and Septem- Novem- Decemmaturity. Total. | January. February. March. April. May. June. July. August. ber. October. ber. ber. All Federal Reserve Banks combined: Within 15 days 51,248,594 7,586,192 7,513,610 6,601,072 4,294,737 3,664,401 3,061,300 3,249,885 3,058,041 2,575,484 3,041,740 2,831,651 3,770,481 16 to 30 days 1,062,513 93,803 102,616 125,613 99,053 110,917 95,793 63,073 90,990 73,135 65,442 71,082 70,996 31 to 60 days 2,025,513 218,929 192,850 237,090 177,718 176,948 180,611 151,221 138,714 144,759 154,240 136,600 115,833 61 to 90 days 3,049,336 332,547 290,742 371,851 307,092 257,261 288,410 240,877 205,035 219,174 200,578 156,413 179,356 91 to 180 days 373,172 26,692 21,031 32,642 34,052 44,337 48,863 30,022 20,283 20,557 27,268 35,525 31,900 Total. 57,759,128 8,258,163 8,120,849 7,368,268 4,912,652 4,253,864 3,674,977 3,735,078 3,513,063 3,033,109 3,489,268 3,231,271 4,168,566 Boston: Within 15 days. 4,025,100 442,411 | 483,977 666,751 337,741 320,934 • 226,200 107,287 261, 609 302,436 229,218 295,608 290,928 16 to 30 days 87,283 12,781 7,241 6,690 5,815 7,668 4,490 6,289 10,908 7,755 3,280 6,800 7,566 31 to 60 days 179,295 22,741 19,699 32,161 11,622 24,950 11,300 10,423 10,839 9,251 7,011 7,932 11,366 01 to 90days.... 162,762 17,905 12,911 26,082 11,839 18,760 15,344 12,224 11,404 10,609 10,703 7,764 7,217 91 to 180 days... 314 26 3 6 112 12 22 25 11 59 38 Total. 4,454,760 495,838 523,828 731,710 367,020 372,318 257,452 196,235 294,782 330,076 250,223 318,163 317,115 New York: Within 15 days 30,018,524 5,449,676 5,496,678 4,169,770 2,359,870 1,780,052 1,237,199 1,772,894 1,567,755 1,057,728 1,526,664 1,336,2872 2,263,951 16 to 30 days | 172,026 16,888 24,943 29,842 j 32,409 29,586 | 9,019 4,120 4,856 3,970 4,707 2,998 31 to 60 days 168,212 18,673 21,279 29,306 j 29,694 8,601 j 9,949 5,338 6,697 12,799 14,670 6,660 4,546 61 to 90 days 409,918 79,887 88,481 42,659 ! 47,904 43,090 \ 26,559 15,024 15,552 I 15,867 19,261 7,645 7,989 91 to 180 days | 310 20 I 17 51 ! 29 27 ! 32 25 12 ! 6 21 34 Total 130,768,9 5,565,144 5,631,398 4,271,628 2,469,906 1,861,356 I 1,282,758 1,797,401 1,598,704 1,091,256 1,564,586 1,355,335 2,279,518 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Philadelphia: Within 15 days. 3,634,702 314,951 | 291,158 j 376,221 324,772 332,685 352, 268 262,754 295,841 259,221 268,883 264,850 291,098 16 to 30 days 49, 507 5,215 ! 3,228 | 6,628 5,037 3,163 | 6,011 4,250 2,748 3,874 3,444 1,882 4,027 31 to 60 days 56,246 2,808 I 6,698 | 7,382 6,354 8,518 I 6,208 3,327 3,188 2,864 2,788 3,306 2,805 61 to 90 days 131,667 26,847 | 8,599 : 8,983 23,670 13,540 | 8,012 12,138 8,171 6,196 6,395 5,489 3,627 91 to 180 days.... 245 5 I 4 I 28 11 ! 34 20 22 18 45 18 11 Total. 3,872,367 349,826 309,687 399,243 359,861 357,917 372,533 282,489 309,970 272,173 281,555 275,545 301,568 g •• = Cleveland: Within 15 days. 2,743,170 352,691 | 349, 819 242,438 200,233 212,787. 231,758 228,080 143,631 156, 220 226,113 208,066 191,334 16 to 30 days.... 66,890 4,500 5,817 4,966 6,901 4,952 6,431 5,224 6,298 2,822 5,533 8,294 5,152 31 to 60days.... 151,292 11,840 6,691 9,958 12,875 10,874 14,127 14,539 18,170 7,809 13,033 22,343 9,033 61 to 90 days.... 254,856 22,674 18,341 21,906 32,526 23,157 25,401 17,762 24, 829 18,904 10,109 19,196 20,051 91 to 180 days... 2,625 144 26 112 337 186 174 141 222 281 367 373 262 Total | 3,218,833 391,849 380,694 j 279,380 252,872 251,956 277,891 j 265,746 193,150 186, C 255,155 258, 272 225,832 Richmond: Within 15 days. 2,325,636 197,196 196,416 258,946 249,003 179,037 202,360 170,889 176,745 175,339 168,897 165,624 185,184 16 to30 days.... 68,274 6,854 5,339 ; 7,161 6,840 4,312 5,577 5,215 4,811 5,968 4,891 5,538 5,768 31 to 60days.... 163,351 11,986 11,200 | 15,374 17,429 13,686 14,004 14,427 15,342 14,828 12,391 12,209 10,475 61 to 90 days.... 184,865 12,421 12,100 j 16,934 17,835 14,159 19,739 18,009 17,398 18,392 13,063 13,224 11,591 91 to 180 days... 7,545 340 244 ! 559 1,023 1,198 1,352 869 467 216 426 491 Total I 2,749*, 671 228,797 225,299 I 298,974 292,130 212,392 243,032 209,409 214,763 214,743 199,602 197,021 213,509 Atlanta: Within 15 daj^s. 1,179,731 136,722 117,241 | 123,815 118,301 108,921 91,671 83,553 85,926 90,402 82,815 70,424 69,940 16 to 30 days.... 67,456 6,002 4,418 \ 6,640 4, 967 5,578 5,325 4,770 5,374 5,196 6,049 6,227 6,910 31 to 60 days.... 143,850 14,056 9,882 I 12,052 8,274 11,162 9,566 9,454 11,662 13,137 14,218 15,169 15, 218 61 to 90 days 235,845 22,274 17,089 | 19,584 17,494 16,050 15,691 20,691 19,520 22,497 25,112 15,980 23,863 91 to 180 days... 20,373 1,622 1,513 1,841 2,807 3,553 2,764 1,160 812 714 1,215 1,492 Total. 1,647,255 180,676 149,510 ; 163,604 150,877 144,518 125,806 121,232 123,642 132,044 128,908 109,015 117,423 OO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 43.—VOLUME OF BILLS DISCOUNTED BY EACH FEDERAL RESERVE BANK DURING 1921, BY MONTHS AND MATURITIES—Continued. 00 [In thousands of dollars.] Federal R m ese a r t v u e r i B ty a . nk and Total. January. February. March. April. May. June. July. August. Septem- October. No b v e e r. m- D b ec e e r. m- Chicago: Within 15 days. 2,376,834 249,360 216, 798 259,655 222,838 ; 227,084 216,709 ; 181, 293 182,438 j 181,251 103,737 132,124 143,547 od 16 to 30 days 292, 810 22,117 31,710 30,406 18,759 | 36,283 I 35,134 ; 16,785 32,349 22,982 18,091 11,648 10, 546 w 31 to 60 days.... 611,650 80,688 70,306 70,247 51,335 | 55,607 66,753 | 55,378 32,975 36, 814 34,974 25,872 30,701 H 61 to 90 days.... 798,500 66,232 62,295 147,213 74,185 : 52,965 91,800 | 65,147 40,300 60,099 48,227 36,180 53,857 o 91 to 180 days... 88,683 4,647 5,773 11,669 7,157 7,365 8,387 ! 4,581 5,857 9,286 7,230 8,378 8,353 3 Total. 4,168,477 423,044 386,882 519,190 374,274 | 379,304 | 418,783 j 323,184 293,919 310,432 272, 259 214,202 253,004 St. Louis: Within 15 days. 1,141,377 97,892 81, 275 104,579 103,153 100,142 103,106 : 101,542 89,049 92,907 88,534 90,799 82,399 16 to30days.... 104, 780 7,574 10,124 15,462 7,947 5,890 7,467 ; 5, 974 7,444 6,327 6, 267 14,420 9,884 31 to 60 days.... 171,927 20,100 15,921 17,929 8,267 12,920 10,602 12,583 9,727 14,244 13,255 20,038 10,341 61 to 90 days.... 174,336 17,983 13,531 15,126 14,020 16,072 17,077 12,332 10,041 15,152 12,341 14,754 15,907 91 to 180 days... 16,604 691 799 1,322 1,589 2,182 3,029 1 1,647 1,271 692 832 1,046 1,504 Total. 1,609,024 144,240 | 121,650 154,418 j 134,976 137,206 147,281 | 134,078 ] 117,532 129,322 121,229 147,057 j 120,035 Minneapolis: Within 15 days. 382,489 52,997 46,360 40,855 ; 36,317 31,156 27,999 27,123 27,518 26, 560 23,000 21,784 ; 20,820 16 to 30 days.... 33,279 2,976 2,393 2,807 I 1,738 4,380 3,652 i 3,375 2,716 2,001 3,511 3,391 | 2,339 o 31 to 60 days.... 90,172 9,261 ; 6,253 6,723 I 8,253 9,291 7,386 3,723 ; 7,651 6,675 12,031 6,991 ! 5,934 61 to 90 days.... 165,988 14,048 11,657 13,137 | 14,047 14,233 19,389 14,660 16,528 14,777 12,811 10,186 10,515 91 to 180 days... 58,734 2,689 \ 2,647 2,973 I 4,817 8,306 9,570 4,639 2,197 1,851 5,600 6,869 ! 6,576 Total 730,662 81,971 69,310 66,495 \ 65,172 67,366 67,996 51,520 56,610 51,864 56,953 49,221 | 46,184 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Kansas City: Within 15 days. 614,492 70,830 65,300 75,113 63,087 45,713 50,101 44,266 39,997 41,372 43,140 37,246 38,327 16 to 30 days.... 34,930 2,791 1,903 4,365 2,444 2,017 2,821 2,290 2,571 4,221 3,672 2,880 2,955 31 to 60 days.... 84,961 6,640 8,209 10,947 7,004 5,675 6,839 5,408 5,410 8,855 8,662 6,101 5,211 61 to 90 days.... 140,745 12,924 12,143 14,411 12,102 10,871 10,507 11,222 9,134 12,046 15,129 12,105 8,151 91 to 180 days... 68,946 5,917 3,874 6,064 6,111 7,706 6,879 4,837 2,842 3,473 6,553 9,136 5,554 Total. 944,074 99,102 91,429 110,900 90,748 71,982 77,147 68,023 59,954 69,967 77,156 67,468 60,198 £ Wa Dallas: o Within 15 days. 506,348 62,729 51,652 52,345 44,269 39,388 40,961 31,524 39,955 42,974 41,141 32,079 27,331 C 16 to 30 days.... 26,048 2,508 1,093 1,463 1,770 1,601 2,264 r2,715 2,245 2.908 3,070 2,436 1.975 jjj 31 to 60 days.... 69,346 7,927 3,492 5,671 4,952 4,841 5,428 6,931 6,119 7,216 . 6,849 5,633 4,287 61 to 90days.... 110,207 11,987 7,167 9,569 8,731 8,342 8,817 12,027 11,597 10,097 7,980 7,363 6,530 >2j 91 to 180 days... 60,048 6,592 3,970 4,404 4,829 6,174 8,166 5,918 3,516 2,350 3,410 5,804 4,915 O Total. 771,997 91,743 67,374 73,452 64,551 60,346 65,636 59,115 63,432 65,545 62,450 53,315 45,038 hj in San Francisco: Within 15 daj 2, 300,185 158,737 116,936 230,584 235,153 286,502 280,962 178,680 147,577 149,074 179,598 170, 760 165,622 £ 16 to 30 days., 59,230 3,597 4,407 9,183 4,426 5,487 7,602 4,066 ' 4,888 4,225 3,664 2,859 4,876 £5 135,211 12,209 13,220 19,340 11,659 10, 823 12,449 9,690 10,934 10,267 14,358 4,346 5,916 W 61 to 90 days... 279,647 27,365 26,428 36,247 32,739 26,022 30,074 29,641 20,561 14,538 19,447 6,527 10,058 ^ 91 to 180 days., 48,745 4,025 2,797 3,920 6,288 8,369 7,575 4,569 2,695 1,547 2;125 2,165 2,670 Q Total 2,823,018 205,933 163,788 299,274 290,265 337,203 338,662 226,646 186,605 179,651 219,192 186,657 189,142 tSl . p> o in CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 44.—VOLUME OF BILLS DISCOUNTED BY STATES; NUMBER OF MEMBER BANKS IN EACH STATE, AND NUMBER ACCOMMODATED THROUGH DISCOUNT OPERATIONS, 1920 AND 1921. 00 00 [Amounts in thousands of dollars.] State. m i o n e N n m e u a D b m c e e h b c r . e b S r 3 a t 1 o a n . t f k e s Num m du b o r e d in r a g a te — cc d om- Total d a i m sc o o u u n n t t e o d f . paper State. m in o e N m n e u a b D m c e h e b r c e S b . r a 3 t a o 1 n t . f k e s Num m du b o r e d in r a g a te — cc d om- Total d a i m sc o o u u n n t t e o d f . paper 1920 1921 1920 1921 1920 1921 1920 1921 | 1920 1921 1920 1921 i Maine 66 63 38 40 50,294 52,765 Michigan: o New Hampshire 55 56 45 46 49,932 48, 790 District No. 7 226 233 171 195 1,743,005 1, 284, 464 H Vermont 49 49 40 36 30,252 26,739 District No. 9 46 49 17 22 6,906 11, 535 O Massachusetts 189 192 160 166 4,554,281 4,170,612 Total 272 282 s 188 217 1,749,911 1,295,999 Rhode Island 20 20 16 13 41,954 20,649 Wisconsin: Connecticut: District No. 7 132 133 97 110 385,750 288,252 tei District No. 1 57 56 43 40 149,843 | 135,205 District No. 9 56 57 20 27 21,189 20,386 District No. 2 14 13 12 i 11 83,856 33, 350 Total 188 190 117 137 406,939 308,63S Total 71 69 55 51 233,699 168, 555 Iowa 459 459 424 429 823,605 635,256 New York 595 602 404 398 49,805,621 30, 228,160 Illinois: District No. 7 390 404 in 297 2,982,798 1,687,314 w New Jersey: District No. 8 176 181 ! 103 105 122,459 95,675 s District No. 2 174 185 120 122 649,952 507,480 District No. 3 86 87 62 66 238, 518 220,387 Total 566 585 380 402 3,105,257 1,782,989 I Indiana: Total 260 272 182 188 888, 470 727, 867 District No. 7 214 214 155 160 370,334 273,191 Delaware 22 22 20 20 43,016 38,614 District No. 8 61 61 30 33 41,544 30,016 o w Total 275 275 185 193 411,878 303,207 Pennsylvania: District No. 3 590 595 402 423 5, 538,724 3,613,366 Arkansas 114 119 94 103 204,422 186,439 District No. 4 321 327 146 169 1,753,118 1,923,179 Missouri: Total 911 922 548 592 7,291,842 5,536,545 District No. 8 111 116 82 66 1,407,879 754,740 District No. 10 58 56 45 54 687,211 289,897 Ohio 459 463 260 291 1,062,757 1,215,924 | Total 169 172 127 120 2,095,090 1,044,637 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Kentucky: Minnesota 368 375 242 254 734,318 474,581 District No 4 75 78 35 39 49,709 43,210 North Dakota 187 188 144 152 55,649 65,304 District No. 8 69 67 45 45 426,245 353,313 South Dakota. 152 155 130 145 82,986 93,325 200 151 165 52,344 65,531 Total 144 145 80 84 475,954 396,523 Wyoming 50 51 35 39 25,666 28,863 West Virginia: Nebraska 210 202 192 169 356,931 175,230 Colorado 145 146 114 105 222,453 141,255 16 16 9 10 30,086 36,520 District No. 5 116 120 36 68 45,886 86,684 Kansas 271 275 171 211 125,537 85,460 a Oklahoma: o Total 132 136 45 78 75,972 123,204 District No. 10 340 358 257 329 239,982 216,713 District of Qplumbia 16 16 10 10 124,352 99,228 District No. 11 40 42 37 31 27,757 22,942 V M N i o a r r g r t y i h n la i C a n a d rolina 1 9 9 8 7 8 5 1 1 9 9 03 7 0 1 8 7 4 5 0 0 1 9 7 4 6 6 6 1,7 3 8 3 0 3 7 3 0 , , 3 2 5 2 6 3 0 5 8 1,4 3 5 2 1 6 8 1 9 ,5 8 8 5 4 2 0 6 8 New M 0 e x a ico: 380 400 294 360 267,739 239,655 o District No. 10 13 15 12 13 10,163 6,656 o 98 100 96 98 304,961 253,535 District No. 11 43 42 38 39 20,560 21,495 Tennessee: District No. 6 86 89 51 65 770,004 455,731 Total 56 57 50 52 30,723 28,151 District No. 8 25 26 21 23 216,786 159,758 Texas 737 749 604 607 1,201,012 694,835 Total 111 115 72 88 986,790 615,489 Arizona: Georgia . 139 173 134 168 540,167 422,646 District No. 11 10 10 9 10 4,617 6,474 Florida 65 72 46 58 100,324 109,041 District No. 12 15 15 13 14 16,790 27,235 o Alabama ... 121 130 95 105 144,048 148,350 Total 25 25 22 24 21,407 33,709 Mississippi: District No 6 18 18 V, 15 31 274 26 250 Utah 64 65 61 62 295,679 263,152 3 District No 8 15 18 11 15 18,706 29,083 Nevada 11 11 4 5 1,946 2,238 o 346 355 202 218 1,911,319 1,923,647 Total 33 36 26 30 49,980 55,333 Oregon 119 134 79 86 214,358 144,946 Louisiana: Idaho 129 127 112 122 186,543 227,461 District No 6 33 33 31 33 646,129 485,237 Washington 146 150 107 110 339,012 234,339 DistrictNo.il 20 18 14 17 ' 26,232 26,251 Alaska 1 Total 53 51 45 50 672,361 511,488 Total, all States 9,629 9,841 6,941 7,415 85,320,874 57,759,128 oo CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 45.—VOLUME OF BILLS DISCOUNTED FOR NATIONAL BANKS AND FOR STATE BANKS AND TRUST COMPANY MEMBERS OF THE FEDERAL CD RESERVE SYSTEM DURING 1921, 1920, AND 1919. O [In thousands of dollars.] Discounted for State bank and trust Total. Discounted for national banks. company members. Federal Reserve Bank. 1921 1920 1919 1921 1920 1919 1921 1920 1919 Koston ,454,760 4,876,556 4,675, 3,596,012 3,903,570 4,003,489 858,748 972,986 671,909 New York.... ,768,990 50,539,429 42,449; 23,572,551 42,514,279 34,131,313 7,196,439 8,025,150 8,318,178 O Philadelphia.. ,872,367 5,820,258 10,736; 3,096,820 4,985,343 9,021,397 775,547 834,915 1,715,038 Cleveland , 218,833 2,895,670 3,125, 1,431,026 1,759,446 2,169,280 1,787,807 1,136,224 956,577 Richmond 749,671 3,346,322 4,130, 2,478, 801 3,119,260 3, 818,758 270, 870 227,062 312,185 Atlanta 647,255 2,231,946 2,005, 1,080,731 1,520,311 1,478,777 566,524 711,635 527,001 Chicago 168,477 6,305,492 4,556, 2,821,976 4,335,290 2,927,458 1,346,501 1,970,202 1,628,854 St. Louis 609,024 2,438,041 2,100, 1,005,416 1,689,278 1,065,560 603,608 748,763 1,035,071 Minneapolis.. 730,662 953,392 661 654,869 887,148 614,780 75,793 66,244 46, 740 Kansas City.. 944,074 1,667,943 1,555, 787,229 1,474,277 1,471,579 156,845 193,666 84,018 Dallas 771,997 1,280,178 1,224, 653,382 1,150,000 1,123,343 118,615 130,178 101,603 San Francisco. 2,823,018 2,965,647 1,951, 1,549,496 1,949,150 1,692,939 1,273,522 1,016,497 258,123 m fed Total | 57,759,128 85,320,874 79,173,970 , 42,728,309 69,287, 352 63,518,673 15,030,819 ! 16,033,522 15,655,297 fed w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 46.—VOLUME OF BILLS, SECURED BY UNITED STATES GOVERNMENT OBLIGATIONS, DISCOUNTED DURING EACH MONTH IN 1921. [In thousands of dollars.] i Year. Feder B a a l n R k e . serve Member ; anuary.! ^" March. April. May. June. July, i August. Septem- October. ! Total. co n l o la te te s r . al; | c™ pa ™ per. C W l o 3 Boston 2,361,087 2,225, 870J 135,217 304,636 281,794! 434,212 238,343 248,080; 169,057 99,234j 175,990 162, 837 87, 941J 81,681 77,282 New York 14,704,624 14318, 50l| 386,12312,307,160 2,201,124 1,562,560 1,594,839 1,060,908; 501,453 956,2511 842,; 441, 843 765,840J 866, 250 ,603,535 Philadelphia 2,708,180 527,832 180,348! 246,700 203,536| 251,788 235,725 264,955 264, 303 202,1461 233,036 195,304 189,442| 198, 267 222,97S Cleveland 2,225,602 .179,111! 46,4911 318,360 325,137 220,025 180,356 180,486: 184,449 164,139 108,675 111, 909 136,071 150,975 145", 020 Richmond 2,311,900 22,914 197,045 195,i 257,237 248,127 179,017 199,464 171,509 176,722 174,144 167,981 163,896 181,110 o Atlanta. 936,800 54,212 112,754 103,240 103,756 98,301 86,416 67,378 62,216 65,189 67, 764 61,594 53,904 54,288 f-ti fcrj Chicago 2,323,715 207,065| 116,650 257,587 219,978 259,850 225,461 221,645! 213,481 182,464j 167,534 162,197 146,570J 124, 577 142,371 St. Louis 994,539 956,4371 38,102 87,103 67,949| 89,059 87,983 85,079 84,644 91,956 80,907 80,041 80,969 84,418 74,431 Minneapolis 314,276J 307,309| 6,967 33,066 35,354| 31,155 29,581 28,882 26,138 25,247 24,670 25,093 19,999| 17,960 17,131 Kansas City 630,6511 604,458J 26,193J 72,906 67,496| 76, 803 65,347 47,277: 51,469 45,463 40,664 42,159 43,979 38,395 38,693 Dallas 454,685 448,379| 6,306 60,686 49,191 50,441 42,339 34,389! 34,146 27,620 34,446 36,498 35,493 27,167 22,269 San Francisco 1,959.398 924,4521 34,946 143,484 105,785 212,976 219,556 271,485; 262,177 156,030 119,439 110,907 135,709J 123,159 98, 691 1 Total: 1921 31,925,457j30,870,988j l,054,469| 4,141,487 3, 856,232 3,549,862 3,265,958 2,708,619; 2,058,159 2,184,275 2,070,133 1,610,696 1,871,588; 1,930,649 2,677, 799 1920 57,440,018;55,410,876! 2,029,142J 5,456,344 5,544,280 5,298,884 4,771,072 4,508,466; 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, 5405,693,811 7,169,367! 6,036,278 6,824,988 6,170,782 6,238,301 7,348,942; 6,761,542 6,202,197 3 CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 47,—VOLUME OP TRADE ACCEPTANCES DISCOUNTED, BY MONTHS DURING 1921. CD [In thousands of dollars.] to Feder B a a l n R k e . serve 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 1 r . Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . Boston 105 82 362 70 187 378 80 ; 209 j 135 81 98 118 1,905 4,664 10,821 New York I 10,482 6,836 3,080 1,424 1,217 1,035 1,178 I 2,563 I 2,138 1,404 1,312 848 33,517 46,255 57,133 i Philadelphia... 163 105 176 131 104 187 104 j 117 ) 185 105 69 75 1,521 4,791 3,753 Cleveland 2,526 1,206 1,548 j 2,047 1,791 2,664 2,636 I 2,095 j 1,377 2,338 2,006 3,885 26,119 26,377 14,091 Richmond 956 1,113 j 1,044 669 816 818 \ 560 j 971 1,422 1,203 1,357 11,817 12,676 9,083 Atlanta 584 561 | 607 1,388 410 659 ! 881 I 1,196 1,647 1,478 1,534 11,811 13, 883 8, 234 Chicago 1,404 842 1,053 j 1,756 889 933 364 I 323 I 295 698 361 229 9,147 26,290 6,581 St. Louis 741 621 325 | 438 141 299 373 j 243 ! 290 554 578 538 5,141 13,471 7,946 Minneapolis... 227 111 428 | 211 250 223 186 : 349 | 199 265 143 104 2,696 3,138 565 j Kansas City... 667 743 802 | 696 387 387 203 j 53 j 223 78 127 150 4,516 10,142 7,486 Dallas 556 198 440 372 362 356 323 ! 449 | 166 346 196 101 3, 865 5,670 1, 887 San Francisco. ..! 1,546 979 1,980 2,068 2,309 2,325 1,749 | 982 | 744 280 1,119 16, 889 24,800 10,840 Total: 1921 | 20,171 13,263 11,868 10,864 9,694 10,013 8,673 | 8,824 I 7,983 9,682 7,851 10,058 128,944 ! 1920 | 16,520 11,001 23,383 15,296 16,541 13,938 13,457 I 14,011 | 17,160 19,389 15,143 16,318 192,157 (.. 1919 j 10,904 8,880 8,561 8,071 7,062 7,946 8,505 : 6,428 I 10,608 16,064 21,924 23,467 138,420 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No, 48.-—VOLUME OF BANKERS' ACCEPTANCES DISCOUNTED, BY MONTHS DURING 1921. [In thousands of dollars.] i Feder B a a l n R k e . serve January. F a e r b y r . u- March. April. May. June. July. August. I i Se b p e te r. m- October. No b v e e r. m- D b ec e e r. m- Y 19 e 2 a 1 r . Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . 1 i Boston „ 51 102 1 I 153 22,129 4,985 w New York. . 5,536 3,101 2,890 2,806 3,523 1,738 180 1,173 35 109 2,101 23,192 70,654 61,771 o o Philadelphia 387 127 514 4,127 19 Cleveland 1,327 1,234 5,912 2,752 748 111 97 2,149 2,934 i 17,264 10,015 Richmond Altanta 25 177 49 4^0 i . .. 691 6,338 i Chicago 506 323 192 60 167 20 175 3 1,446 32,095 St. Louis... 521 332 948 579 1,851 1,291 1,196 113 262 464 325 92 7,974 7,124 4,146 o Minneapolis 401 223 11 132 50 11 75 903 Kansas City 33 103 10 66 212 368 357 Dallas 80 54 20 154 704 San Francisco 527 603 1,165 504 381 433 463 5 149 134 203 25 4,592 33,608 365 Total: 1921 8,974 6,159 11,512 7,405 6,563 3,790 1,942 1,418 2,606 3,848 640 2,238 57,095 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 H 1919 1,577 737 800 420 1,112 496 361 182 388 1,271 2,053 62,246 71,643 O H o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 49.—VOLUME OF BILLS DISCOUNTED DUKING 1921, BY NORMAL KATES OF DISCOUNT CHARGED. CO [In thousands of dollars.] Federal Reserve Bank. 4J per cent. 5 per cent. 5| per cent. 5f per cent, ! 6 per cent. I 6J per cent. 7 per cent. Total. Boston.. 595,925 382, 913,819 ... 1,754,702 ;.. 07,643 4,454, 760 New York. 3,558,513 2,051, 3, 917,417 ... 9,847,561 i1,158,632 10,235523 30, 768, 990 Philadelphia.. 550,295 277, 2,242,490 ! 25,541 776,659 !.. 3,872,367 Cleveland 436, 639,956 | 462,808 ;1,679,289 ! 75 3,218,833 O Richmond 170, 224,395 | 4,479 j 2,350,550 i 2, 749,671 Atlanta 577,031 ! 969 ! 768,412 !. 245526 1,647, 255 C Chicago 447, 041 | 19,256 2,453,750 I 469,879 769009 4,168,477 *i St. Louis 256, 359,157 ! I 993,022 1,609, 024 H Minneapolis 122, ! 284,340 162,443 161,162 730,662 Kansas City 126, 11,717 j... 015 794 920 ! 944,074 Dallas 3, 164,160 138 496,659 i 38, 022 67,783 771,997 W San Francisco.. 367, 645,587 i 134 1,806,585 .. 2,823,018 945 !! Total. 4,704,733 4, 576,191 9,827, 715 528,343 |24,006,449 1,829,051 12,286,646 57,759,128 w w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 50.—VOLUME OP BILLS DISCOUNTED EACH MONTH IN 1921, BY NORMAL RATES OF DISCOUNT CHARGED. [In thousands of dollars.] Month. ;4i per. cent. 5 per cent. 5$ per cent. 5f per cent. | 6 per cent. j6£ per cent, 7 percent. Total. January.. 5,677 1,464,979 355,173 ,702,761 3,729,346 ' 8,258,163 d February 2,005 684,583 152,830 ,353,641 3, 927,679 ; 8,120,849 March •275 561,722 4,894 525,961 3,274,988 ; 7,368,268 6 April 434,089 5,959 263,245 1,209,148 j 4,912,652 May..... 318, 960 5,890 900,005 883. 145,485 | 4,253,864 H June 265,586 3, 597 689,999 715, ; 3,674,977 July 875,972 694, 529 164, I 3,735,078 August... 2,538, 906 942,176 31, j 3,513,063 September 503,514 1,555,793 947,087 26, 3,033,109 October 2,064; 577 506,133 913,076 5, 3,489,268 November | 1,806,532 927,412 423,358 73,969 3,231,271 December % I 2,898,201 1,072, 731 197,634 4,168,566 Total ! 4,704,733 4, 576,191 9, 827,715 528,343 24,006,449 1, 829,051 12,286,646 : 57,759,128 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 51.—NUMBER OF BANKS IN EACH DISTRICT ACCOMMODATED THROUGH DISCOUNT OPERATIONS, BY MONTHS DURING 1921. CO Fede d r i a s l t r R ic e t s . erve January. F a e r b y r . u- March. April. May. June. July. August. Se b p e te r. m- October. No b v e e r. m- De b c e e r m . - T 1 o 9 t 2 a 1 l . , T 1 o 9 t 2 a 0 l . , T 1 o 91 ta 9. l, Boston 228 225 245 250 248 ' 259 234 218 227 222 221 246 341 342 348 New York 329 316 349 351 365 376 326 321 326 329 335 374 531 536 546 >g Philadelphia 324 318 330 369 384 399 393 382 381 388 403 417 509 484 494 fe Cleveland 247 237 261 308 324 364 349 363 371 381 395 420 509 450 409 C Richmond 352 335 347 373 394 413 415 411 421 430 413 410 494 437 414 £j Atlanta 339 340 355 340 353 359 346 372 379 371 374 379 444 372 347 Chicago 943 908 922 1,027 937 947 934 915 910 959 971 974 , 1,191 1,124 951 krj St. Louis 309 299 306 315 321 323 326 327 325 320 333 316 390 386 305 yq Minneapolis 614 589 589 608 645 634 620 552 506 603 610 582 765 704 475 £ Kansas City 609 561 585 605 608 605 563 500 529 570 577 612 920 826 679 te Dallas 566 550 570 545 570 603 630 640 637 608 608 573 704 702 607 ^ Pan Francisco •433 429 461 477 483 463 471 452 415 391 382 373 617 578 418 % Total: 1921 5,293 5,107 5,320 5,568 5,632 5,745 5,607 5,453 5,427 5,572 5,622 5,676 7,415 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 :::::::::: £ 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 fee I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 52.—'AVERAGE RATES CHARGED ON BILLS DISCOUNTED, BY MONTHS DURING 1921. [Per cent.] 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 1 r . Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . Ito Boston 6.42 6.46 6.57 6.21 6.00 6.00 5.82 5.50 5.36 5 00 i 4 ss 4.50 5 88 6 03 4.25 New York 6.53 6.55 6.52 6.45 6.26 ! 6.15 5.84 5.50 5.33 5.00 4.54 4, 50 6.06 5.97 4.14 a w Philadelphia 5.61 5.67 5.67 5.63 5.62! 5.67 5.60 5.50 5.50 5.05 4.55 4.50 5.44 5.44 4.13 o Cleveland .. . 5.90 5. 96 6.00 6.00 6.00 j 6. 00 6.00 5.60 5.50 5.50 5.06 5.00 5.72 R fifi 4.24 Richmond 5.99 6.00 6.00 6.00 6.00 | 6.00 6.00 6.00 6.00 6.00 5.55 5.13 5.91 | 5.78 4.32 Atlanta 6.40 6.29 6.39 6.36 6.12 | 6.00 6.00 6.00 6.00 6.00 5.52 5.28 6.05 5-97 4.25 Chicago 6.67 6.70 6.72 6.70 6.41 I 6.38 6.35 6.00 6.00 6.00 5.08 5.00 6.29 6.32 4.35 St Louis 5.98 6.16 5.90 6.03 6.24 6.17 6.17 6.00 6.00 6.00 5.06 5.00 5.90 5.98 4.26 Minneapolis 6.78 6.73 6.78 6.81 6.54 I 6. 45 6.42 6.42 6.41 6.08 5.63 5.50 6.35 6.40 4.54 o Kansas City 6.70 6.47 6.50 6.44 6.48 i 6.41 6.42 6.00 6.00 6.00 5.05 5.00 6.14 6.65 4.74 m Dallas. . 6.00 6.27 6.68 6.73 6.62 | 6.33 6.00 6.00 6.00 6.00 5 62 5.50 fi. 01 5.78 4.46 San Francisco 6.00 6.00 6.00 6.00 6.00 6.00 5.87 5.50 5.50 5.50 5.03 5.00 5.79 5.82 4.50 All banks: 1921. 6.36 6.36 6.43 6.33 6 20 i 6 14 fi-ft2 5.76 5.75 5 62 5.03 4.91 6.01 1920. 4.90 5.52 5.64 5.R7 5. 74 6. 20 6.21 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 4.67 4.26 o 3 CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 53.—AVERAGE MATURITY OF BILLS DISCOUNTED, BY MONTHS DURING 1921. CO [Days.] oo 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 . - D b ec e e r m . - Y 19 e 2 a 1 r . Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . Boston 9.39 7.89 8.86 8.78 11.61 11.99 12.70 9.31 7.74 9.10 7.91 8.46 9.24 13.14 13.12 New York 5.30 5.51 6.41 9.59 10.87 12.19 8.26 8.47 9.67 6.65 6.13 4.30 6.99 7.34 7.20 Philadelphia 15.84 12.70 12.56 15.48 14.13 12.38 14.45 12.38 12.28 12.07 12.02 10.49 13.06 13.24 7.29 o Cleveland 10.56 9.40 14.74 20.72 17.03 17.80 16.99 23.47 19.21 14.48 17.99 17.30 15.90 16.45 14.66 H Richmond 13.87 12.99 12.89 13.93 16.85 16.64 17.63 17.63 17.66 15.42 15.62 13.50 15.26 13.75 10.00 O Atlanta 27.04 25.81 26.50 26.55 26. ^L 29.35 31.35 29.54 30.54 32.28 30.98 34.09 28.94 25.26 17.83 Chicago . 32.85 33.50 41.13 35.07 31.54 37.22 35.66 30.57 34.99 33.99 34.63 37.28 35.11 34.74 19.33 St. Louis 26.97 26.43 24.33 27.44 24.14 26.50 22.19 21.50 23.29 22.82 23.70 25.19 24.59 24.77 13.12 Minneapolis 33.42 32.66 36.55 43.10 50.05 54.81 46.22 43.52 42.06 50.22 53.46 53. 89 44.48 38. 85 22.27 Kansas City 33.05 30.79 32.86 34.90 41.73 37.85 37.08 33.57 36.73 43.27 48.93 39.70 37.03 34.54 23.41 Dallas . . 35.85 31.62 32.86 36.05 40.06 41.73 43.28 45.63 32.49 31.98 41.55 42.05 38.44 27.42 20.25 San Francisco 24.98 27.77 21.55 20.74 17.33 17.75 22.25 23.47 20.20 19.81 13.62 15.76 20.17 21.13 16.42 All banks: 1921. 10 19 9.61 12.38 15.66 16.76 19.29 16.18 15.76 17.22 14.78 14.42 11.67 13.63 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 i w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 54.—VOLUME OF BANKERS' AND TRADE ACCEPTANCES BOUGHT IN OPEN MARKET, BY MONTHS DURING 1921. [In thousands of dollars.] Total reduced to a common maturity basis.1 Feder B a a l n R k e . serve 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- Total. Per cent Amount. a of total. o d Boston 11,224 23,064 23,788 13,278 25,436 14,361 11,033 15,127 10,639 13,880 24, S88 24,985 211,703 135,947 8.85 New York 60,108 58,061 78,089 71,580 72,686 24,410 14,415 63,567 41,382 85,278 84,152 146,085 799, 813 577,444 37. 63 Philadelphia 6,671 11,002 9,023 9,860 11,037 3,400 1,403 4,303 2,001 8,778 11,052 13,823 92,353 145,035 9.47 Cleveland 10,540 27,593 11,155 8,047 5,300 3,233 2,279 3,482 3,168 4,483 3,327 5,237 87,844 116,415 7.58 Richmond. . 2,933 1,695 2,665 1,228 726 2,154 1,650 1,647 2,670 2,939 3, 029 2,009 25,345 39,004 2.55 o Atlanta 1,599 504 470 1,117 621 868 886 779 5,344 4,108 2,226 3,606 22,128 40,479 2.64 Chicago 17,656 16,200 15,023 11,423 10,998 8,332 7,856 9.815 6,665 10,626 12,288 11,394 138,276 301,259 19.63 St. Louis .. 1,308 1,572 1,600 1,813 2,263 947 756 1,187 2,651 754 4,114 1,222 20,187 11,917 .78 Minneapolis 39 39 533 .03 Kansas City 1 155 25 815 20 939 248 330 1,573 264 189 5,558 11,057 .72 Dallas 21 4 150 19 60 20 50 155 200 15 694 1,250 .08 San Francisco 8,674 29,765 7,382 5,136 8,569 6,929 5,393 7,128 6,983 6,507 16,459 21,536 1,30,461 154,061 10.04 Total: 1921 121,868 169,456 149,255 123,511 138,601 64,673 46,670 107,303 81,883 139,081 161,999 230,101 1,534,401 1,534,401 100.00 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 to 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 o 1 Total purchases multiplied by ratio of average maturity of bills purchased by each bank to average maturity (28.53) for system. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

o No. 55.—VOLUME OF BANKERS' AND*TRADE ACCEPTANCESJBOUGHT IN OPEN MARKET DURING 1921, BY MATURITIES. o [In thousands of dollars.] Total. Maturity. Federal Reserve Bank. Amount. m A in a v d t e u a r r a y i g s t e f y j : j L W\ ) v *l d f a U} > vl r i s in - n 1 d 6 a v to s . 30 3 d 1 a t y o s 6 . 0 6 d 1 a t y o s . 90 O d v a e y r s 9 . 0 Boston 211, 703 18.32 I 168;,423 j ,591 18,770 4,919 I New York.... 799, 813 20.61 I 608,,848 I ,204 69,373 31,367 | Philadelphia.. 92,353 44.81 I 16,545 I ,469 25,626 28,156 | 3 Cleveland 87, 844 37.81 | 24,404 ' ,488 2H, 402 14,549 j Richmond 25,345 43.91 ! 3,937 I 727 6, 338 6,343 | Atlanta 22,128 52.2J ; 1,340 ! 340 9, 366 5,983 99 Chicago 138,270 62. i 8 ! 43,307 j 593 29,217 41,477 2,0S2 St. Louis 20,1S7 16.85 i 19,211 105 866 Minneapolis.. 39 39.29 I 25 U Kansas City.. 5,558 56.78 ! 203 617 3, 038 1,700 j - - - Dallas 694 51.79 | 19 : 204 fc260 211 j... San Francisco 130,461 33.69 ,370 i 27,075 18,374 | 114 33,528 | Total: 1921. 1,534,401 28.53 937,607 ; 215, 224,037 153,945 3,474 1920. 3,218,364 43. 83 1,060,151 | 449, 848, 890 859, 899 w 1919. 2,825,177 50.45 1,751 | 455, 807,326 982, 877 434 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 56,—VOLUME OF BANKERS' AND TRADE ACCEPTANCES BOUGHT IN OPEN MARKET DURING 1921, BY MONTHS AND MATURITIES. [Amounts in thousands of dollars.] Total. Maturity. Month. Average j within 16 to 30 31 to 60 61 to 90 ' Over 90 Amount. maturity ; 15 days> days; dayg> days- dayg> o January.. 121,868 , 38.22 ; 55,281 ; 19,018 : 354 19,215 I February. 169,456 • 36.98 | 66,540 ! 32,155 187 27,574 j March.... 149,255 i 33.99 i 73,044 I 27,686 I 611 20,914 [ April 123,511 I 26.60 78,433 i 21,174 728 9,176 I May 138,601 ; 23.20 98,855 j 23,112 943 3,691 | June 64,673 j 28.83 43,353 ! 11,929 271 :i'm\ Julv 46,670 31.26 31,889 3,016 614 7,536 615 August 107,303 \ 25.33 I 77,768 ; 10,080 602 10,098 • 755 September.. 81,883 \ 25. 89 j 51,652 ! 12,244 112 , 7,202 ; 673 October 139,081 ! 25. 77 ! 92,323 i 17,332 303 14,792 i 331 November.. 161,999 • 25.60 | 114,550 | 11,857 : 961 19,310 i 321 December.. 230,101 ! 23.39 | 153,919 | 25,735 | 351 i 11,317 ! 779 H Total: 1921.. 1,534,401 28.53 I 937,607 ! 215,338 ! 224,037 | 153,945 j 3,474 C 1920.. 3,218,364 | 43.83 | 1,060,151 j 449,424 : 848, 890 j 859,899 \ 1919.. 2, 825,177 : 50.45 | 578,751 : 455,789 807,326 I 982,877 \ O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

to No. 57.—VOLUME OF ACCEPTANCES BOUGHT IN OPEN MARKET DURING 1921, DISTRIBUTED BY CLASSES. o to [In thousands of dollars.] Bankers' acceptances. Trade acceptances. Federal Reserve Bank. All classes. In the In the In the In the Total. foreign domestic Dollar Total. foreign domestic trade. trade. exchange. trade. trade. j Boston.. . 211,703 211,703 133,293 59,350 19,060 New York... . 799,813 793,626 551,923 151,392 90,311 6,187 6,182 5 Philadelphia... . 92,353 92,353 61,149 19,224 11,980 Cleveland. 87,844 87, 598 52,215 31,106 4,277 246 166 80 tu Richmond 25,345 25,345 10,221 15,124 Atlanta 22,128 22,128 12,317 9,811 ft Chicago.. 138,276 138,276 87,281 45,544 5,451 1 St. Louis.. 20 187 20,187 9,740 9 537 910 Minneapolis. 39 39 39 Kansas City... 5,558 5,558 4,296 1,262 Dallas... 694 694 231 463 San Francisco. . . .. 130,461 129,728 96,984 26,159 6,585 733 733 in Total: 1921 1,534,401 1,527,235 1,019,689 368,972 138,574 7,166 7 081 85 is "s 1920 3,218,364 3,143,737 2,367, 881 711,311 64,545 74,627 68,876 5,751 1919 2,825,177 2,788,619 2,020,888 756,425 11,306 36,558 27,289 9 269 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 58.—VOLUME OF ACCEPTANCES BOUGHT IN OPEN MARKET DURING EACH MONTH IN 1921, BY CLASSES. [In thousands of dollars.] Bankers' acceptances. Trade acceptances. M >nth. All classes. Total. f I t o n r r a e t d i h g e e n . do I tr n m a d t e h s e e t . ic ex D ch o a ll n a g r e. Total. f I t o r n r a e t d i h g e e n . do I tr n m a t d e h s e e t . ic O o d January 121,868 120,725 77,801 32,111 10,813 1,143 1,073 70 February. 169,456 167,362 116,050 36,662 14,650 2,094 2,079 15 March 149,255 148,698 100,587 31,373 16,738 557 557 5 April 123,511 121,412 75,605 28,290 17,517 2,099 2,099 May 138,601 137,980 85,207 27,225 25,548 621 621 O June 64,673 64,598 43,000 17,264 4,334 75 75 o July 46,670 46,623 29,137 16,141 1,345 47 47 August 107,303 107,270 79,762 21,712 5,796 33 33 September. 81,883 81,772 54,691 23,591 3,490 111 111 October 139,081 139,081 87,913 44,211 6,957 November. 161,999 161, 821 111,453 37,061 10,307 178 178 December.. 230,101 229,893 155,483 53,331 21,079 208 208 Total: 1921. 1,534,401 1,527,235 1,019,689 368,972 138,574 7,081 85 1920. 3,218,364 3,143,737 2,367,881 711,311 64,545 74,627 68,876 5,751 1919 | 2,825,177 2,788,619 2,020,888 756,425 11,306 36,558 27,289 9,269 o in to o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 59.—VOLUME OF ACCEPTANCES PURCHASED DURING 1921, BY KATES OF DISCOUNT CHARGED. to [In thousands of dollars.] o Federal Reserve Bank. Total. 4 c J e n p t e . r 4 c } e n p t e . r 4 c f e n p t e . r ; ! c 4 e § n p t e . r 4 c A e n p t e . r 4 c | e p n e t. r 4 c f e n p t e . r 4 c 1 e n p t e . r c 5 e p n e t r . 5 c £ e n p t e . r 5 c 1 e n p t e . r 5 c | e p n e t. r 5 c h e n p t e . r Boston 211,703 7,417 11,130 9,313 \ 17,596 50 12,490 1,751 572 27,442 1,775 3,853 260 9,707 New York 799,813 17,718 11,446 5,518 188,216 6,690 79,551 967 31,734 6; 373 68,389 663 2,626 Philadelphia 92,353 9,194 7,184 5,274 j 2,585 8,031 1,381 5,244 463 562 443 2,400 Cleveland 87,844 2,505 1,575 784 2,700 523 1,952 375 4,984 1,331 1,550 362 764 Richmond 25 345 134 1,502 3,402 § Atlanta 22 128 19 624 1 774 4 071 Chicago . 138,276 6,568 5,928 4,523 4,798 6,316 2,522 3,957 5,573 5,524 5,275 3,888 4,362 St Louis . 20,187 143 257 485 ! 4,140 285 377 1,837 1,232 538 596 236 497 Minneapolis 39 ; J Kansas City 5,558 454 Dallas 694 100 65 Pan Francisco 130,461 10,523 8,654 4,324 3,954 10,983 2,358 1,886 3,347 3,754 2,216 1,474 4,573 Total 1,534,401 54,068 46,193 30,221 224,613 50 45,31X 90,026 9,594 83,386 19,7.)S 82,4 U 7,326 32,467 Federal Reserve Bank. 5 c | e p n e t. r 5 c f e n p t e . r o c H e p nt e . r 5 c | e p n e t, r I j 6 c e p n e t r . 6r c V e n p t e . r 6 c J e p n e t. r 6 c } e p n e t. r (> c • e * n p t. er 6 c J e n p t e . r 6 c -7 e n p t e . r 6 c ; e p n e t. r 7 c e p n e t r . 7 c & e n p t. er Boston 24,252 62,433 12,632 3,677 4,227 511 390 225 New York 831 296 928 41,858 ! 25,917 4,497 3,684 53 818 55 5,271 10 Philadelnhia 3,117 25,843 11,151 | 9,303 128 50 Cleveland 1,008 18,548 27,269 15,742 47 214 736 841 31 19 31 Richmond 1 20 307 W O VtJanta 1 11 900 3, 740 Chicago.. 757 23,428 50 30,503 12,981 345 7,698 2,341 935 b St 1/Ouis 368 2,239 2,005 1 2,601 445 1,578 278 50 "Mi n neap olis 39 i Kansas Citv 75 f 2 076 2 953 Dallas ' 358 150 21 San Francisco 1,027 31,416 15,953 ! 17,876 5,017 1,014 108 4 Total 31,360 460,910 50 141,410 j 122,738 345 26,226 9,914 2,605 1,282 55 19 12,016 10 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 60.—VOLUME OF ACCEPTANCES PURCHASED DURING EACH MONTH IN 1921, BY RATES OF DISCOUNT CHARGED. [In thousands of dollars.] Month. Total. per cent. per cent. perc 41 e - nt. percent. per 4 c A ent. per cent. per 4 c | ent. per cent. 1 p er 5 cent. per cent. per 5 c i ent. per o ce f nt. per cent. January 121,868 30 February 169 456 • i March 149 255 3,120 in April 123 511 21 931 May 138,601 1 4,719 O c June 64,673 2,008 d July 46,670 1,317 651 4,126 4,146 9,168 August 107,303 24,387 12,579 57,848 1,792 3,905 September 81 883 3,130 41,738 5,592 19,083 1,188 1,796 O October 139 081 11,665 50 27,714 74,209 5,552 8,875 704 1,263 200 119 c November 161 999 13,940 17,587 92,526 14,552 14,597 503 3,019 46 60 4,904 December 230,101 54,068 32,253 12,634 120,422 3,052 1,220 409 4,029 186 61 1,767 Total 1,534, 401 54,068 46,193 30,221 224,613 50 45,318 90,026 9,594 83,386 19,758 82,441 7,326 32,467 Month. per 5 c | ent. per cent. per cent. per S c i ent. per 6 cent. per cent. per cent. per 6 c i ent. per 6 c | ent. per 6 c § ent. per 6 c f ent. per cent. per 7 cent. per cent. January 685 52 254 31 359 21 198 345 6,764 2,934 2,172 487 3,630 10 H February . . 10 77,926 42,764 32,001 9,845 3,977 430 26 2,477 O March 38 83,146 27,087 25,179 7,236 2,445 3 64 19 918 3 April 2,994 89,560 50 15,612 9,934 1,076 166 3,167 > May. 11,963 99,701 14,772 5,114 529 256 627 55 865 June... . 10,157 36,298 8,728 6,540 721 123 78 20 o July 3,599 18,622 1,040 3,044 5 13 939 August 1,116 2,877 48 2,701 50 ! September 798 451 8 107 October 75 8 655 I 1 November . . .. 265 Hecember to Total 31,360 460,910 50 141,410 122,73s 345 26,226 9,914 2,605 1,282 | 55 19 12,016 10 i i o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 61.—AVERAGE RATES CHARGED ON BANKERS' AND TRADE ACCEPTANCES PURCHASED, BY MONTHS DURING 1921. to o [Per cent.] Feder B a a l n R k e . serve January. F a e r b y r . u- March. April. May. June. July. August. || October. No b v e e r. m- De b c e e r m . - Y 19 e 2 a 1 r . Y 19 e 2 a 0 r . Y 19 e 1 a 9 r . Boston 5.98 5.94 5.88 5.84 5.74 5.84 5.47 5.11 5.12 4.82 4.59 4.27 5.39 5.98 4.36 New York 5.97 5.96 5.98 5.91 5.86 5.87 5.80 5.32 5.18 4.81 4.59 4.46 5.40 I 5.81 4.37 Philadelphia.. 6.00 5.99 5.99 5.84 5.87 5.90 5.46 5.11 5.11 4.70 4.42 4.23 5.35 | 5.89 4.38 O Cleveland 6.02 6.02 6.01 5.94 5.95 5.99 5.81 5.29 5.21 4.80 4.72 4.30 5.81 j 5.83 4.32 H Richmond 6.08 6.08 6.08 6.08 6.08 6.08 6.08 6.08 6.08 6.08 5.58 5.12 5.93 | 5.93 4.60 O Atlanta 7.10 7.10 7.10 7.10 6.07 6.07 5.97 6.01 6.07 6.07 5.54 5.24 6.10 | 5.85 4.57 Chicago 6.06 6.08 6.08 5.93 5.91 5.85 5.55 5.29 5.12 4.79 4.54 4.28 5.51 | 5.93 4.38 St. Louis 6.29 6.04 6.09 6.06 5.83 6.07 5.54 5.21 5.03 4.97 4.57 4.41 5.47 | 5.68 4.31 Minneapolis 5.96 5.96 ! 5.50 4.25 Kansas City... 7.10 7.10 7.10 7.10 7.10 6.08 6.08 5.07 5.07 6.46 j 6.27 4.51 Dallas 7.10 6.08 6.59 6.08 5.61 6.08 6.08 5.42 5.58 6.08 | 5.97 4.68 San Francisco. 6.03 6.04 6.02 5.96 5.88 5.77 5.38 5.30 4.88 4.47 4.30 5.49 | 5.79 4.40 All banks: 1921. 6.05 6.01 6.01 5.94 5.88 5.88 5.70 5.31 5.35 4.97 4.60 4.41 5.49 ! 1920. 5.10 5.53 5.8C 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 I 4.25 4.25 4.26 4.47 4.84 4.36 tel w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 62.—AVERAGE MATURITY OF BANKERS' AND TRADE ACCEPTANCES PURCHASED, BY MONTHS DURING 1921. [Days.] Feder B a a l n R k e . serve January. F a e r b y r . u- March. | April. May. June. July. August. Se b p e t r e . m October. No b v e e r. m- De b c e e r. m- Y 19 e 21 a . r Y 19 e 20 a . r Y 19 e 19 a . r i Boston 22.19 19.46 19.57 14.60 18.82 j 28.48 14.43 15.54 14.73 14.03 14.43 21.01 18.32 33.10 43.10 New York 28.01 25.31 29.89 19.61 17.06 I 18.15 17.76 18.92 19.52 18.75 17.33 17.67 20.61 35.42 42.64 a Ui Philadelphia... 70.46 49.80 40.13 46.64 36.88 I 37.10 27.42 50.69 56.82 31.48 49.84 41.05 44.81 59.09 57.00 o Cleveland 40.70 49.50 44.65 30.52 28.93 j 20.03 18.49 19.19 20.77 29.82 27.61 31.41 37.81 56.13 59.82 Richmond 43.29 37.88 39.78 62.36 38.81 33.41 43.45 37.49 46.99 49.09 43.18 52.22 43.91 55.98 56.41 Atlanta 55.53 47.14 70.05 66.57 52.34 57.07 48.81 47.02 56.41 51.61 45.95 43.72 52.21 58.55 62.38 Chicago 60.85 58.01 57.27 53.52 57.62 67.30 86.41 75.28 53.33 68.70 63.94 55.24 62.18 62.55 64.43 St. Louis 14.78 32.28 21.27 15.05 15.02 15.49 14.35 15.39 15.00 15.64 14.97 14.54 16.85 48.69 42.16 Minneapolis... 39.29 39.29 64.83 60.14 o Kansas City... 60.56 86.20 31.15 90.00 49.67 44.64 46.84 73.21 71.69 47.80 56.78 56.18 61.24 Dallas 82.90 26.05 65.64 14.06 50.08 57.90 66.96 51.25 36.11 87.71 51.79 50.64 47.38 San Francisco. 51.54 45.54 50.60 37.10 20.19 17. 64 20.16 17.97 19.27 24.43 35.25 28.93 33.69 56.97 61.93 All banks: 1921. 38.22 36.98 33.99 26.60 23.20 28.83 31.26 25.33 25. 89 25.77 25.60 23.39 28. 53 1920.1 47.05 50.50 49.33 51.59 44.22 45.72 47.82 36.78 41.71 35.51 35.11 38.43 43. 83 H 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 in to o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 63.—-REDISCOUNT OPERATIONS BETWEEN FEDERAL RESERVE BANKS DURING 1921. to o CHRONOLOGICAL TABLE. 00 [In thousands of dollars.] Bills rediscounted by Federal Reserve Bank of— Bills rcdiscounted by Federal Reserve Bank of— Bills discounted for oth- Bills discounted for oth- i er Federal Reserve er Federal Reserve R B e a s n e k r s v e b B y ank F ed of e — ral Date. , ! m R o ic n h d - . ! : I Mhme- K C a i n ty sa . s ! | Dallas. R B e a s n e k r s v e B by a nk F o e f d — eral Date. m R o ic n h d - . Atlanta. M ap i o n l n is e . - j | K C a i n ty s . as Dallas. 2 Cleveland Jan. 3 i ! 3,000 4,000 Cleveland Feb. 17 ; 6,000 H3 Do Jan. Do | Feb. 23 ; 5,000 O 4 I I 2,900 i. Do Jan. 4,500 Do Feb. 24 ! 4,000 Boston Jan. 5,000 Do '• Feb. 28 | 4,000 H Philadelphia ...do. 3,000 Do : Mar. 3 | 6,000 fcrj Cleveland ...do. 3,004 7,000 Do 1 Mar. 8 ! 2,000 Do Jan. 1,000 1,000 Do ! Mar. 9 j 1,000 Do Jan. 1,000 Do ! Mar. 10 j 3,000 Boston Jan. 2,500 Do Mar. 15 j 2,000 Cleveland ..do. 1,000 i 2,000 Do j Mar. 18 j 6,500 Boston Jan. 1,250 I Do i Mar. 21 1,000 Philadelphia ..do. 1,000 ; Do. Mar. 1,500 Cleveland ...do. 7,000 Do. Mar. 2,000 Do Jan. 2,004 2,000 Do. I Mar. 8,000 Do Jan. 2,500 | 3,000 Do. 1 Apr. 1,500 Boston Jan. 2,500 | Do. : Apr. 2,000 o w Do Jan. 5,000 Do. Apr. 2,500 >> Cleveland j -. -do. 3,500 Do. Apr. 2,000 Philadelphia | Jan. 20 1,000 Do. Apr. 1,000 Cleveland i.. -do. 500 2,000 Do. Apr. 1,000 Do Jan. 1,000 Do. Apr. 1,000 Boston Jan. 2,800 • Do. Apr. 2,500 Cleveland do. 9,000 Boston Apr. 15 1,500 Do Jan. 26 | 1,800 Do Apr. 18 1,000 Do Jan. 27 j | 1,000 5,000 New York .do.... 5,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Do | Jan. 28 j. ..; 2,000 | Do Apr. i,000 Boston Jan. 31 L 1,000 ! i Boston Apr. 25 ! 2,000 Cleveland do New York.. ...do. Do Feb. 500 Do.... Apr. 27 ; 5,000 Do I Feb. 2,000 ; 4,500 Cleveland. 4,000 Boston I Feb. 2,000 Boston Apr. 28 \ 1,500 Cleveland j.. .do. 5,000 Do Apr. 29 ; 1,500 Do Feb. 14 ! I I 1,000 5,500 New York ...do 5,000 I Bills rediscounted by Federal Reserve ii Bills rediscounted by Federal Reserve Bank of— Bank of— Bills discounted for other Federal Bills discounted for other Federal Reserve Banks by Federal Re- Date. Reserve Banks by Federal Re- Date. serve Bank of— m R o ic n h d - . Atlanta. M ap i o n l n is e . - Dallas. serve Bank of— m R o ic n h d - . Atlanta. M ap i o n l n is e . - Dallas. New York May 2 5,000 | Boston June 9 1,000 Boston j May 9 I 500 Do June 10 5,000 New York j May 10 10,000 ! Do f June 11 1,000 Boston ! May 11 1,500 Do I June 13 2. 500 Do ,, | May 13 1,500 New York |...do 5,000 I i o,000 ; New York j May 16 6,000 j. Do J June 15 15,000 j j Do I May 18 5,000 2,000 |. Boston ! June 20 1,500 Boston May 20 1,000 New York -do 3,000 : New York ...do. 3,000 Do I June 21 10,000 ! 4,000 ; Do I May 21 5,000 Boston j June 22 1,500 § Boston | May 23 1,500 New York [... do 5,000 j New York I...do 5,000 4,000 |. Boston i June 23 O Do May 25 2,000 L New York L.. do •000 Boston May 26 500 Boston | June 24 j 3,000 New York. ...do 5,000 New York do j 10,000 ! 1,000 Boston May 27 | 1,000 Boston | June 25 1,000 Do May 31 i 2,500 New York j June 27 5,000 : 3,000 New York ...do 10,000 5,000 j Do | June 29 10,000 ; Do. June 5,000 Boston | June 30 1,000 to Do. June 10,000 New York I July 1 5,000 o CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 63.—REDISCOUNT OPERATIONS BETWEEN FEDERAL RESERVE BANKS DURING 1921—Continued. CHKONOLOGICAL TABLE—Continued. O [In thousands of dollars.] ! Bills rediscounted by Federal Reserve Bills rediscounted by Federal Reserve ! Bank of— Bank of— Bills discounted for other Federal Bills discounted for other Federal Reserve Banks by Federal Re- Date. Reserve Banks by Federal Re- Date. serve Bank of— m R o ic n h d - . Atlanta. M ap i o n l n is e . - Dallas. serve Bank of— m R o ic n h d - . Atlanta. M ap i o n l n is e . - Dallas. Boston July 5 5,000 Boston Aug. 24 1,500 a New York. ...do.... 5,000 2,000 New York. ..do.... 5,000 2,000 Boston „, July 6 1,000 Boston Aug. 25 1,000 Do July 7 1,500 Cleveland.. ..do. 1.500 New York. July 8 10,000 Boston Aug. 26 2,000 Boston July li 5,000 New York.. .do.. 10,000 New York. ..do..., 5,000 Cleveland.. ..do. 500 Boston July 12 500 New York. Aug. 1,000 New York. ..do 1,000 Do Aug. 5,000 Boston July 13 2,500 Cleveland.. ..do. 3,000 New York do.. 2,000 Boston Aug. 30 2,000 Do July 14 5,000 New York. ..do. 1,000 Boston ; July 15 3,000 Do Aug. 31 5,000 New York do 1,000 Boston Sept. 1 1,500 Boston | July 18 3,000 New York. Sept. 15,000 w New York !... do 10,000 2,000 Cleveland.. ...do.. • 5,000 o Boston | July 20 1,500 Boston .[ Sept. 6 1 2,500 2,000 New York L.-do 1,000 New York. |...do | 10,000 1,000 I Do | July 21 5,000 Boston I Sept. 8 500 Cleveland do 2,500 Do Sept. 1,000 j 1,000 New York j July 22 .j 1,000 ; New York. ...do.. 1,000 I Do ] July 23 J 1,500 j Boston..!... Sept. 10 i 1,500 Cleveland I... do. 2,007 j. Do Sept. 12! ! ...j 2,000 Boston ! July 25 1,000 I. New York.. do. j 10,000 1 i 4,000 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

New York do . 5,000 2,000 Boston Sept. 14 1,500 1,500 Cleveland do... 2,50C New York .do 15,000 New York July 26 5,000 Cleveland .do 1,500 Boston July 27 1 000 500 Boston Sept. 15 1,500 2,000 New York ...do 5,000 1,000 Do . . Sept. 16 2,000 Do...! July 28 10,000 Do . . .. Sept. 19 500 Cleveland ...do 4,000 New York ...do 10,000 . ..I 3,000 Boston July 29 1,500 Cleveland Sept. 20 1,088 New York ...do 1 000 Boston. Sept. 21 1,500 Do Aug 1 2 500 New York do 10,000 2,500 Do Aug. 2 10,000 Cleveland . ...do 3,000 Boston Aug. 4 1,000 Boston.. Sept. 22 1,000 New York -do 5,000 Cleveland ..do 1,500 Cleveland ...do 2,500 Boston Sept. 23 1,500 2,500 Boston Aug. 5 4,000 New York ...do . 5,000 New York ...do 3,000 Boston. Sept. 26 3,000 Boston Aug. 8 1,000 New York ...do 10,000 New York ...do 10,000 i onn Cleveland do 1,500 Do.. Aug. 9 5,000 Boston Sept. 28 500 Boston Aug. 10 3,0GC New York ...do 10,000 Do Aug. 12 3,000 Boston Sept. 29 1,000 New York ...do.... 10,000 1,500 Do Sept. 30 1,500 Boston An?. IS 600 New York ...do 5,000 New York do 5,000 3,500 Cleveland Oct. 1 1,000 Boston [ Aug. 16 5,000 Boston. Oct. 3 5,000 Do ' Anc 17 2,000 New York do 5 000 New York ...do..... 5,000 1,000 Do Oct. 5 10,000 Boston Aug. 18 1,000 Do Oct. 7 5,000 Do Aug. 19 1,000 2,000 Boston Oct. 10 500 1,000 New York ...do 10,000 2,000 New York ...do.... 5,000 Boston Augr 20 500 Do Oct. 11 10,000 New York ...do 1,000 Boston Oct. 13 3,500 Boston Aug. 22 1,500 3,500 New York... .do 2 000 New York ...do 5,000 5,000 Do Oct. 14 5,000 Boston Aug. 23 1,500 2,0(0 Boston Oct. 17 2,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

to No. 63.—REDISCOUNT OPERATIONS BETWEEN FEDERAL RESERVE BANKS DURING 1921—Continued. I—1 CHRONOLOGICAL TABLE—Continued. to [In thousands of dollars.] Bills rediscounted by Federal Reserve Bills rediscounted by Federal Reserve Bank of— Bank of— Bills discounted for other Federal Bills discounted for other Federal Reserve Banks by Federal Re- Reserve Banks by Federal Re- Date. serve Bank of— m R o ic n h d - . Atlanta. M ap i o n l n is e . - Dallas. serve Bank of— m R o ic n h d - . Atlanta. M ap i o n l n is e . - Dallas. New York Oct. 17 | 3 non New York Nov. 4 5 000 o Boston Oct. 19 500 Boston Nov 7 1,000 New York do 10,000 3 000 Do IV ov 9 1,000 w Boston Oct. 20 1 000 New York Nov. 14 a non Do ! Oct. 21 ] 000 4,000 Boston Nov. 17 2,500 New York i.. -do 5,000 1,000 Do Nov. 18 1,000 1,000 Boston. . . . Oct. 24 1,500 Do.. Nov. 23 1,000 New York ...do 1,000 New York .do... 5 000 Boston. Oct. 25 i . . ..| 1,000 Boston.. Nov. 25 1,500 Do Oct. 26 i 2,500 New York .do 5,000 New York ...do ! 10.000 1,000 Boston Nov. 28 1 000 1,500 Boston Oct. 28 2,000 Do Nov. 30 1 000 1,500 I New York do 5 noo i Do Dec 1 500 Do Oct. 31 . j 1 000 Do Dec 2 1 500 1,500 Boston Nov. 1 j 1.500 1,500 Do Dec. 9 1 000 W O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISCOUNT AND OPEN-MARKET OPERATIONS. 213 INTERDISTRICT ACCOMMODATION NET AMOUNT OF ACCOMMODATION RECEIVED FROM OR EXTENDED TO OTHER FEDERAL RESERVE BANKS END OF MONTH HOLDINGS, 1920 AND 1921 ABOVE BASE LINES: ACCOMMODATION EXTENDED BELOW BASE LINES: ACCOMMODATION RECESVED • 1920 -1921 pOS1TIKI rJUII A r»ri DU1 A MIL O L F IONS DOLLARS DOLLARS 120 - i 120 100 100 80 A 80 | \ 60 60 40 / \ \ 40 20 \ 20 0 -^-^ \ \ /t / j 0 4 2 0 0 / -f-\t^\ P^f j —Y 4 2 0 0 f / T 60 60 f 80 80 160 -4- 160 140 -CL.EVELANDy RICH* OND H __A TLANTA 140 120 — 1 120 100 / 100 / 80 80 60 1 60 40 40 ! 1 20 20 i O 0 20 20 40 | __ 40 60 60 80 80 160 160 140 pHICAGO -ST. LOUIS - MINNEAPOL 140 120 i 120 100 100 80 80 60 \ 60 4-0 40 20 \ 1 20 0 0 20 \ s y"*\ / > > ~—* 20 40 V \ /-- --.^ 40 60 60 80 80 160 i i 1 1 160 140 KA^JSAS r*|TV V A 1 1ACT cJ AM 140 120 120 100 100 80 80 60 60 40 40 20 20 0 •^ \ 0 20 20 40 >— 40 60 60 80 i 80 85227—22- -15 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

o. 63,—REDISCOUNT OPERATIONS BETWEEN FEDERAL RESERVE BANKS DURING 1921—Continued. to SUMMARY, BY MONTHS DURING 1921. [In thousands of dollars.] Bills rediscounted by Federal Reserve Bank of— Month. Total. Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. 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 January 98,458 10,000 21,950 8,500 9,008 49,000 February 39,500 2,000 3,000 34,500 March 33,000 33,000 April 47,000 20,000 2,000 25,000 May 77 000 45,000 22,000 10 000 June.. 111, 000 75,000 18,000 18,000 July 123,507 70,000 4,007 15,500 34,000 August. . . 161,100 90,000 9,600 24,500 37,000 September 158,588 .... 100,000 17,588 11,500 29,500 October 108 500 70,000 6,000 12,000 20,500 November. . .. ... 37,000 20,000 4,500 12,500 December 4 500 1,500 3 000 Total 999,153 500,000 67,145 117,000 9,008 306,000 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUMMARY FOR THE YEAR, BY FEDERAL RESERVE BANKS. [In thousands of dollars.] Bills Bills rediscounted by Federal Reserve Bank of— rediscounted Bills discounted for other Federal Reserve by all Banks by Federal Reserve Bank of— R F B c e e a o s d e n m e r k r v - a s e l Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty s . as Dallas. F c S i r s a a c n n o - . Q CO bined. O C| H Jioston 204,150 10,000 39,650 3,500 151,000 New York. 595 500 490 000 105,500 Philadelphia.... 5 000 4,000 1 000 O Cleveland 194,503 23,495 7,000 9,008 155,000 o Richmond Atlanta Chicago k St. Louis B Minneapolis Kansas City Dallas San Francisco 1 Total 999 153 500,000 67,145 117,000 9,008 306,000 o to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 REPORT OF THE FEDERAL RESERVE BOARD. INTERDISTRICT ACCOMMODATION NET AMOUNT OF ACCOMMODATION BETWEEN FEDERAL RESERVE BANKS END OF MONTH HOLDINGS, 1920 AND 1921 ABOVE BASE LINE: ACCOMMODATION EXTENDED BELOW BASE LINE: ACCOMMODATION RECEIVED •1 BOSTON CLEVELAND E553 CHICAGO [77] KANSAS CITY PBSflNEW YORK RICHMOND Vffft ST. LOUIS ESSa PALLAS igU PHILADELPHIA ATLANTA PT?771 MINNEAPOLIS TlSAN FRANCISCO l 1920 1921 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 64.—SALES OF BANKERS' ACCEPTANCES BETWEEN FEDERAL RESERVE BANKS DURING 1921. [In thousands of dollars.] Sold by Federal Reserve Bank of— Purchased by Federal Reserve Bank of— Bate. San Y N o e r w k. Chicago. Boston. d P el h p i h la i - a. C la le n v d e . - Lo S u t. is. F ci r s a c n o - . CoO o Jan. 19. . 5 006 5,006 21 5 049 5,049 22 . 10 032 10 032 24. . . .. ^ 10,052 10,052 26 15 062 15,062 27 5,622 5,622 w Feb. 2 6,823 6,823 28 1 000 1 000 k > Total 57,646 1,000 10,671 6,823 25,094 1,000 15,058 H 1O o to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No, 65.—VOLUME OF UNITED STATES BONDS AND NOTES PURCHASED, BY MONTHS DURING 1921. to [In thousands of dollars.] 00 Distribution, by classes. U. S. Treasury notes of 1924. U. S. bonds. Federal Reserve Bank. J a a r n y u . - F a e r b y r . u- March. April. May. June. July. August.Se b p e te r. m- O b c e t r o . - No b v e e r. m- De b c e e r. m- Total. T un ak d e e n r Victory repur- All notes. Liberty AH a c g h r a e s e e - other. bonds' other. o ment. H Boston' 11 1,070 190 360 2,021 1,840 905 1,401 7,798 5,463 1,420 904 11 O New York... 5,509 3,012 2,024 9,976 4,465 14,038 39,024 20,598 10,545 1,065 6,816 Philadelphia.. 6,070 273 2,870 108 2,301 11,622 9,282 2,310 30 Cleveland 12 1 18 4 501 4 532 31 4 445 56 Richmond 0) (l) C1) Atlanta 520 8,362 1,663 240 100 1,655 12,540 73 1,655 10,812 Chicago 35 50 391 2,687 4,918 3,789 9,344 21,214 12,488 1,400 7,326 St. Louis 227 306 111 367 14 173 1 198 1 027 171 Minneap olie 71 196 114 80 380 5 185 1,031 856 175 Kansas City 800 800 800 Dallas San Francisco. 607 598 77 592 42 5 2,750 4,671 1,915 2,749 7 Total 11 520 8,362 15,264 4,626 1,182 11,303 17,631 9,183 36,348 104,430 38,549 27,349 20,800 17,702 30 U. S. Treasury notes of 1924: i Taken undgr repurchase agreement 698 3,289 9,915 9,159 15,488 38,549 All other 13,624 4,626 244 7,964 860 19 12 27,349 Vietory notes 10 5 20,785 20,800 U. S. bonds: Libertv bond* 11 0) 520 8,362 1,640 240 50 6,816 63 17,702 All other.. 30 30 i Less than $500. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 66.—VOLUME OF UNITED STATES CERTIFICATES OF INDEBTEDNESS PURCHASED, BY MONTHS DURING 1921. [In thousands of dollars.] Distribution, by classes. Temporary Certifi- S Federal Reserve Bank. January. ru Fe a b r - y. March. April. May. June. July. August. te S m ep b - er. October. No b v e e r. m- De b c e e r. m- c c e p a r u t t i r e f - s i- u t c a n a k d t e e e n s r All o o Total. chased re- other. d from purchase 3 U.S. agree- Treas- ment. urer. Boston 14,820 1,699 17,384 3,737 48,435 60,686 1,607 1,506 18,954 3,983 4,571 13,135 190,517 156,000 16,339 18,178 O New York 164,551 2,774 281,579 26,751 416,967 754,209 56,384 25,957 426,556 58,404 94,368 323,340 2,631,840 2,077,000 185,287 369,553 Philadelphia 26,721 7,544 26,939 10,160 31,319 49,831 52 1,758 3,447 4,050 2,350 21,927 186,098 141,000 1,830 43,268 Cleveland 10,002 71,030 235 104,055 91,347 35 42,195 19 25,120 344,346 343,000 1,346 Richmond 16,000 6,000 2,000 2,000 9,000 2,000 37,000 37,000 Atlanta 3,000 C1) 0) 4,012 0) 2 7,015 7,000 15 Chicago 33,736 2,211 22,699 2,091 35,723 28,294 777 8,679 14,136 6,920 20,131 35,078 210,475 138,000 51,530 20,945 St. Louis 1,322 1,395 1,844 1,079 383 28,714 222 1,619 1,254 2,153 196 4,238 44,419 36,000 8,419 Minneapolis 9 17 16 188 765 595 672 537 620 212 606 545 4,782 4,782 Kansas City 486 200 1,214 405 299 243 147 145 1,819 3,001 137 1,053 9,149 4,000 5,149 Dallas 1,000 100 2,000 470 3,570 3,000 570 San Francisco 2,445 3,039 20,682 1,319 2,085 22,689 735 1,106 5,517 4,8 8,669 73,453 51,100 22,353 o Total: 1921.. 274,092 18,880 449,487 47,965 640,031 1,044,620 60,631 41,615 523,968 83,592 122,676 435,107 3,742,664 2,993,100 254,986 494,578 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 7,987,978 7,262,000 312,581 413,397 1919.. 828,447 326,327 83,842 86,537 150,808 232,845 180,874 1,870,088 72,453 56,887 758,361 4,736,163 4,736,163 i $500. to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 66.—VOLUME OF UNITED STATES CERTIFICATES OF INDEBTEDNESS PURCHASED, BY MONTHS DURING 1921—Continued. to to o [In thousands of dollars.] Distribution, by classes. Temporary Certifi- January. F a e r b y r . u- 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 . - c c e p a r u t t i e r f - s i- u t c a n a k d t e e e n s r All Total. chased repur- other. from chase U.S. agree- Treas- ment. urer. Distribution, by classes of certificates purchased in 4 1921: Temporary certificates purchased from U.S. Treasurer 247,000 403,000 8,000 496,000 996,000 20,000 459,000 58,100 306,000 2,993,100 Certificates taken under repurchase agreement 987 500 7,705 19,470 42,990 2,974 7,808 30,911 5,938 9,232 92,341 34,130 254,986 All other 26,105 18,380 38,782 20,495 101,041 45,646 32,823 10,704 59,030 16,260 30,335 94,977 494,578 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOLD SETTLEMENT FUND. No. 67.—SUMMARY OF TRANSACTIONS, JAN. 1 TO DEC. 3i, 1921. [In thousands of dollars.] Net changes in Federal Keserve Bank. B J a a l n a . n c 1 e . dr w G aw i o t l h a d - ls. de G po o s ld its. T a r g a e t n o n sf t' e s rs T a r f g a r e o n n m sf t' e s rs Interbank transfers Settlements fro 19 m 21 , J i a n n c . l u 1 s , iv 19 e. 21, to Dec. 31, B i a o n t a f l c f b a u l u n o n s c s d i e e - a t o h n w r d o n u s e e g rs t h t h l i e t p r m a o n e f s n g f t o e s r l . d s fund. fund. ness Dec. Debits. Credits. de N b e it t s. d T e o b t i a ts l . cr T e o d t i a ts l . cr N ed e i t ts. 31. Loss. Gain. Boston 40,116 49,807 35,794 110,000 40,000 453,750 230,040 4, 847,864 5,157,783 309,919 42,S12 86,209 ° New York 45,902 135,045 708,005 410,000 219,000 682,186 1,427,483 1,043,101 18,579,456 17,536,355 130,058 297,804 H Philadelphia... 50,352 48,663 298,958 361,000 111,000 124,500 59,429 6,403,072 6,479,272 76,200 61,776 11,129 H Cleveland 77,015 87,185 17,528 30,000 20,000 427,002 285,591 5,128,623 5,314,131 185,508 41,455 44,097 tn Richmond 20,429 47,764 115,379 19,010 562,488 562,200 49,652 5,541,662 5,492,010 19,094 49,940 s Atlanta 7,442 35,449 154,128 113,200 16,700 128,103 85,645 2,011,943 2,039,587 27,644 14,807 14,814 W Chicago 36,048 56,556 72,551 175,000 235,000 33,700 8,463,247 8,866,634 403,387 79,130 202,087 ^ St. Louis 21,763 32,081 38,042 56,000 32,000 25,500 32,600 4,462,654 4,474,792 12,138 22,962 19,238 ^ Minneapolis 8,456 25,145 12,516 6,000 189,218 126,385 1,328,270 1,420,265 91,995 30,989 29,162 2 Kansas City 23,957 33,484 48,888 12,000 8,000 85,761 44,508 3,622,595 3,662,225 39,630 33,738 1,623 ....... ^ Dallas 2,074 44,116 60,359 7,000 347,073 326,500 2,105,485 2,109,066 3,581 8,325 16,992 o San Francisco.. 23,724 56,716 318,486 365,000 127,672 28,500 75,000 57,249 2,439,930 2,382,681 37,417 10,749 Year 1921 357,278 652,011 1,880,634 1,651,210 587,372 3,289,081 3,289,081 1,150,002 64,934,801 64,934,801 1,150,002 522,063 391,922 391,922 Year 1920. 329,737 539,684 1,186,940 1,118,300 498,585 7,551,585 551,585 565,839 85,074,220 85,074,220 1,565,839 357,278 471,555 471,555 Year 1919. 401,926 392,293 1,124,304 1,479,640 675,440 7,930,859 7,930,859 3,526,274 66,053,393 66,053,393 3,526,274 329,737 281,385 281,385 fcO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 68.—CLEARINGS AND TRANSFERS THROUGH THE GOLD SETTLEMENT FUND, BY WEEKS DURING 1921. to to [In thousands of dollars.] All Federal Reserve Banks. Net loss or gain through clearings and transfers. Week ending- Total Boston. New York. Philadelphia. Cleveland. Richmond. Total Total clearings clearings. transfers. and transfers. Loss. Gain. Loss. Gain. Loss. Gain. Loss. Gain. Loss. Gain. o w H Jan 6 (4 days) 1,128,567 96,812 1,225,379 10,619 37,250 5,696 894 1,428 o 13 1,351,708 68,946 1 420,654 2,355 9,002 6,973 16,841 2 837 H 20 1,429,587 74,144 1,503,731 14,058 66,343 17,082 12,699 4,602 w 27 1,369,059 102,251 1,471,310 9,092 30,973 1,027 7,243 3,994 Feb 3 1,299,633 44,409 1,344,042 155 21,281 19,490 9,246 2,867 10 . 1,189,191 57,799 1,246,990 1,463 12,335 2,220 8,240 2,183 17 1,183,910 36,789 1,220,699 5,238 8,839 15,081 1,445 2,720 24 . . 1,161,428 25,806 1,187,234 6,128 20,105 8,862 23,585 5,988 Mar 3 . . . .. 1,335,484 34,788 1,370,272 5,415 7,568 6,798 10,136 445 10 1,257,028 35,437 1,292,465 6,926 7,855 2,581 279 759 17 1,385,235 15,559 1,400,794 4,468 8,762 2,014 13,953 5,495 24 1,337,704 103,333 1,441,037 2,580 45,070 1,535 11,744 1,162 31 1,156,322 54,868 1,211,190 10,389 60,303 2,492 10,610 3,648 Apr 7 1,227,665 31,249 1,258,914 27,597 56,159 5,618 5,909 5,618 14 1,215,078 29,793 1,244,871 10,112 6,175 13,660 16,004 2,174 o 21 1,323,229 38,837 1,362,066 9,816 1,748 8,567 7,786 1,550 28 1,231,352 33,708 1,265,060 1,466 1,937 234 1,405 5,446 May 5 1,228,157 41,834 1,269,991 5,914 30,058 10,502 5,141 5,390 12 1,174,393 41,806 1,216,199 6,552 33,974 1,216 1,966 7,455 19 1,320,200 24,994 1,345,194 2,802 29,319 13,685 7,150 6,159 26 1,216,498 67,004 1,283,502 3,472 26,228 5,375 8,186 1,140 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

June 2. 1,020,615 44,818 1,065,433 5,702 4,875 7,961 13,600 540 9. 1,174,796 62,249 1,237,045 8,887 42 147 2,947 12,370 4,844 16. 1,271,644 61,449 1,333,093 4,358 12,255 143 10,410 2,621 24. 1,322,351 178,079 1,500,430 9,476 32,796 7,136 791 2,943 30. 1,169,525 90,067 1,259,592 2,351 9,031 6,507 4,711 1,813 July 7. 1,022,351 62,876 1,085,227 18,924 61,049 21,204 798 6,406 14. 1,145,631 69,331 1,214,962 6,773 4,957 2,148 3,251 1,788 21. 1,264,505 82,766 1,347,271 2,109 1,872 1,185 936 5,783 28. 1,163,329 75,043 1,238,372 3,879 734 1,768 1,970 5,990 Aug. 4. 1,186,521 57,219 1,243,740 11,999 78,316 763 7,399 769 11. 1,091,784 61,958 1,153,742 6,984 14 759 4,138 2,640 585 18. 1,197,822 107,840 1,305,662 7,397 7 256 382 2,784 9,815 25. 1,148,162 87,245 1,235,407 10,544 8,363 1,009 6,330 3,793 Sept. 1. 1,086,906 65,248 1,152,154 2,275 5,706 3,987 356 1,393 8, 939,553 75,362 1,014,915 11,245 32,294 5,466 5,887 203 15. 1,234,901 89,797 1,324,698 5,673 2,836 7,791 5,236 1,112 22. 1,431,763 231,934 1 663 697 3 993 68 280 15 630 1,032 537 29. 1,248,961 99,286 1,348,247 1,254 16,179 4,755 2,256 4,276 Oct. 6 1,276,834 83,946 1,360,780 14,186 62,804 10,863 1,237 489 13 1,132,983 74,993 1,207,976 6,132 31,771 1,712 61 "5,325 20 1,514,301 104,924 1,619,225 249 34,784 14,836 3,374 3,194 27 1,324,679 66,404 1,391,083 7,134 4 014 1,234 7,004 650 Nov. 3. 1,344,117 42,501 1,386,618 428 18,983 10,711 4,241 2,259 10. 1,232,002 28,359 1,260,361 6,039 22,007 1,010 3,073 3,157 17. 1,247,315 21,867 1,269,182 4,726 5,840 3,148 1,207 3,336 23. 1,181,874 19,736 1 201 610 1 962 5 943 2,650 21,016 4,853 Dec. 1. 1,411,173 32,344 1,443,517 12,638 1,282 4,080 4,587 411 8. 1,309,583 26,316 1,335,899 14,812 38:041 883 4,245 3,886 15. 1,286,356 20,957 1,307,313 3,154 425 4,127 4,540 2,724 22. 1,466,164 95,000 1,561,164 6,753 31,494 6,745 4,241 478 to to Co Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 68.—CLEARINGS AND TRANSFERS THROUGH THE GOLD SETTLEMENT FUND, BY WEEKS DURING 1921—Continued. to to [In thousands of dollars.] All Federal Reserve Banks. Net loss or gain through clearings and transfers. Week ending- Total Boston. New York. Philadelphia. Cleveland. Richmond. Total Total clearings clearings. transfers. and transfers. Loss. Gain. Loss. Gain. Loss. Gain. Loss. Gain. Loss. Gain. Dec. 29 1,104,340 7,000 1,111,340 2,597 9,772 116 1,836 472 30-31 460,533 2,000 462,533 1,087 17,051 6,332 3,668 197 Year 1921 64,934,802 3,289,080 68,223,882 86,209 297,804 11,129 44,097 49,940 Year 1920. .. . . 85,074,220 7,551,585 92,625,805 72,685 317,228 84,775 160,683 10,755 Year 1919 66,053,393 7,930,859 73,984,252 2,717 125,713 13,510 54 1,587 Net change in ownership of gold since establishment of the fund in 1915 172,586 1,430,008 119,446 332,078 32,949 Net loss or gain through clearings and transfers. 72 Week ending— Atlanta. Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. < Loss. Gain. Loss Gain. Loss: Gain. Loss. Gain. Loss. Gain. Loss. Gain. Loss. Gain. w o Jan 6 (4 days) . . .. 4,356 21.175 4,577 1,387 3,922 590 342 13 . . 3,810 ...! 3.811 1,723 727 1,683 1,193 811 1 20 1,071 12,971 1,704 924 770 408 9,808 27 334 21,570 4,585 572 419 2,216 8,893 Feb 3 1083 17 083 6,918 1,802 3,018 2,123 722 10 1,005 4,718 3,167 569 3,763 51 8,252 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

17 905 [ 152 431 1,548 3,722 890 | 10,505 24 721 8,174 2,628 3,959 6,969 431 6,760 Mar 3 894 10,902 374 8,684 960 1,990 6,008 10 4 647 1 785 2,080 1,296 3,566 3,626 7,134 17 1,204 18,876 3,893 3,002 5,923 10,521 24 4,888 26,790 7 132 2 398 4,787* 4,430 6,814 31 4 616 22 990 365 4,195 251 1,891 414 Apr 7 774 17 031 4 924 2,205 1,096 1,316 131 14 7,106 28 499 3,383 4,192 909 880 5,106 21 586 1 238 4 825 6,237 3,260 622 3,039 28 2 062 3,584 691 2,263 3,000 999 4,223 May 5. 897 3,732 5,225 2,369 3,749 1,605 4,184 Q C 12 11 605 34 958 519 1,485 4,251 3,033 416 19 1 564 5,259 8,620 132 4,637 267 3,862 O 26 7 033 1,664 4,458 759 3,082 3,472 7,287 June 2 2,760 3,176 7,116 607 544 907 244 H H 9 2 398 11 421 285 75 782 4,156 2,160 16 .. . . 908 6,524 3,025 363 2,336 1,501 7,222 g 24 7 593 30 422 478 1,733 1,673 5,420 689 30 1 399 6 292 3 521 330 1,909 1,822 6,422 July 7 1 839 12,384 4,932 1,642 1,371 83 9,552 14 6,280 17,234 2,016 3,430 4,855 353 1,431 21 3 206 3 373 351 589 5,078 1,908 646 a 28 1 584 7 396 1 315 440 1,473 821 7,916 Aug 4 3 006 46,003 6,042 167 10,868 1,226 410 2,619 17,720 1,143 1,688 1,235 1,383 2,234 18 2 158 405 927 438 2,613 50 6,201 25 194 1 607 380 1,303 1,634 1,261 I 1,566 Sept 1 2,712 7,444 3,279 209 133 1,303 6,873 8 602 10,176 2,306 946 1,848 1,821 5,178 15 759 7,573 1,811 78 7,154 62 5,615 22 3,144 46,506 2,853 3,636 8,230 676 6,015 29 4,875 2,671 2,993 1,325 2,489 100 679 to to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 68.—CLEARINGS AND TRANSFERS THROUGH THE GOLD SETTLEMENT FUND, BY WEEKS DURING 1921—Continued. to [In thousands of dollars.] Net loss or gain through clearings and transfers. Week ending— Atlanta. Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Loss. Gain. Loss. Gain. Loss. Gain. Loss. Gain. Loss. Gain. Loss. Gain. Loss. #ain. o w H Oct. 6 2,705 24,712 5,370 3,963 969 2,643 3,551 o 13 40 1,543 8,955 1,351 1,209 43 11,648 20 2,655 3,520 1,240 446 3,245 435 2,460 27 . .. 3,057 4,562 6,726 782 7,518 3,532 651 Nov. 3 1,363 9,071 1,130 2,984 4,066 1,372 4,750 10 2,781 16,491 638 5,859 2,343 782 9,582 17 900 12,576 4,518 873 2,256 1,902 7,596 23 18 115 2,709 3,439 937 3,074 8,946 Dec. 1 . 2,808 2,348 974 3,710 6,262 1,588 9,372 8... 1,701 3,383 5,436 7,044 3,514 854 1,763 15.. .. 1,106 17,626 47 2,291 669 1,447 6,944 22.. .. 3,941 20,168 5,464 1,320 3,172 7,666 1,104 g 29 5,806 6,221 5,123 722 1,614 183 7,932 30-31 984 4,170 687 2,928 971 2,210 7,131 c Year 1921 14,814 202,087 19,238 29,162 1,623 16,992 10,749 o Year 1920 16,342 98,343 6,886 7,143 8,767 21,744 137,759 Year 1919 28,152 73,364 27,210 46,293 18,201 13,370 212,599 Net change in ownership of gold since establishment of the fund in 1915 38,897 213,558 107,025 18,066 33,720 3,129 424,452 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 69.—FEDERAL RESERVE AGENTS' GOLD FUND. [In thousands of dollars.] Total with- Total Balance at Federal Reserve Agent at— B J a a 19 l n 2 a . 1 n . 1 c , e dr W aw it a h l - s. Deposits. T to r a b n a sf n e k r . s fr T o r m an s b f a e n rs k. i t d n r r c a a n lu w s d f a e i l n r s s g , i t d n r e a c p n lu o s d f s e i i n t r s s g , b c D l u e o c s s . i e n e 3 o s 1 s , f to bank. from bank. 1921. Boston.... 110, 240,000 195,000 40,000 110,000 280,000 305,000 135,000 New York 35, 45,000 140,000 219,000 410,000 264,000 550,000 321,000 Philadelphia.. 121, 241,000 111,000 361,000 352,000 361,000 130,389 Q Cleveland 135, 20,000 30,000 20,000 30,000 145,000 Richmond 51, 153,000 117,285 19,010 153,000 136,295 34,295 Atlanta 54, 129,500 19,000 16,700 113,200 146,200 132,200 40,000 w Chicago 188, 421,500 356,000 175,000 421,500 531,000 297,644 St. Louis 39, 110,000 103,569 32,000 56,000 142,000 159,569 57,100 Minneapolis 11 3,000 6,000 9,000 2,200 Kansas City.... 37, 76,000 61,000 8,000 12,000 84,000 73,000 26,360 Dallas 14, 37,000 32,000 7,000 44,000 32,000 2,234 San Francisco.. 99, 133,500 127,672 365,000 261,172 365,000 203,662 Year 1921. 1,589,500 1,023,854 587,372 1,651,210 2,176,872 2,675,064 1,394,884 Year 1920. 886,327 1,060,700 451,350 498,585 1,118,300 1,559,285 1,569,650 896,692 Year 1919. 928,497 1,011,370 165,000 675,440 1,479,640 1,686,810 1,644,640 886,327 to to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CLEARING OPERATIONS. to 00 No. 70.—OPERATIONS OF THE FEDERAL RESERVE CLEARING SYSTEM DURING 1921. [Numbers in thousands. Amounts in thousands of dollars.] Items drawn on banks in- Total items handled (exclusive of duplications). Other Federal Items drawn on District outside Reserve United States Federal Reserve Bank. Fed B e a r n a k l R c e it s y e . rve F b e r d a e n r c a h l R ci e t s ie e s r . v 1 e Fed B e a ra n l k R a e n s d erve (f d o i r s w tr a i r c d ts ed Treasurer. Number. Amount. O branch city. direct to drawee bank). H B N b u e m r. - N b u e m r. - Amount. N b u e m r. - N b u e m r. - Amount. N b u e m r. - Amount. 1920 1919 Boston !,469 6,396,704 38,695 417, 679 1,688 246,099 48,852 42,518 35,573 11,060,482 13,763,652 12,128,604 New York 19,962 23,546,751 2,210 987,828 56,213 040,113 12,488 1,638,094 90, 873 73, 781 63,171 34,212,786 47,678, 900 50,530,050 Philadelphia 19,442 8,483,268 24,436 745,789 2,066 462,551 45,944 40,191 29,547 11,691,608 14,117,964 11,960,067 Cleveland 4,316 2,289,013 7,153 4,284,032 32,823 664,658 92 15,140 2,062 240,487 46,446 41,004 28,008 10,493,330 14,045,260 10, 812,166 Richmond 1,300 1,430,933 2,803 1,727, 777 29,981 912,915 1,290 205,284 35,374 30,069 7,276,909 8, 990, 977 7,239,629 Atlanta 1,357 657,398 4,343 1,407,100 10,867 »,780 1,196 212,060 17, 763 14,830 11,844 3,463,338 4,609,185 3,932,333 Chicago 10,184 6, 866,654 2,989 1, 709,037 47,238 274, 882 4,862 729, 881 65,273 56, 821 35,427 13,580,454 18,039,381 13,491,520 St. Louis 3,123 2,444,861 2,456 1,237, 519 25,314 568,019 2,012 202,058 32, 905 30,551 18,826 5,452,457 7,353,150 5,862,399 o Minneapolis 2,979 1, 379,059 281 100,746 18,735 101,770 2,411 544 74,847 22,543 20,515 10,246 2,658, 833 3,416, 908 2,363,563 Kansas City 3,105 2,919,615 3,186 1,762,711 43,365 740,027 4,455 1,740 219,246 51,403 48,398 27,251 7,646,05410,664, 775 7, 911,056 Dallas 1,696 701,539 1,259 550,290 21,992 765,162 1,146 99,276 26,093 26,460 12,007 4,116,267 6,282,204 3,999,123 San Francisco 2,441 1,249,489 6,462 2, 530,706 28,186 091, 803 2,106 1,319,864 39,196 26, 978 14,651 7,191, 873 7,546,908 6,262,913 Total: 1921. 78,374 58,365,284 33,142 16,297,746 377,845 38,509,597 104 22,017 33,200 5,649,747 522,665 118,844,391 1920. 63,599 72,494,620 23,447 20,228,821 337,628 57,083,187 75 23,593 27,367 6,679,043 452,116 156,509,264 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 t s r i i c n t . own He b ad ra n of c f h ic e e s , . by Re O se t r b h v r e e a r n B F c a h e n e d k s e . s r a a l nd Number. Amount. Number. Amount. Number. Amount. Number. Amount. 1921 1920 1919 1921 1920 1919 Boston 1,978 590, 863 50,830 43,821 36,234 11,651,345 14,727,346 13,054,799 New York 228 70,056 468 226,066 13,646 1,888,725 105,215 87,727 74,464 36,397,633 55,729,013 56,540, 748 Philadelphia.. 8,352 1, 805; 965 54,296 49,217 37,004 13,497,573 16,855,904 14,766,937 Cleveland. 452 138,477 391 84,752 1,427 783,975 48,716 43,213 29,789 11,500,534 15,517,119 12,456,799 § Richmond 512 141,427 900 101,173 2,473 1,101,378 39,259 33, 732 20,934 8,620,887 11,505,945 9,304,180 Atlanta 612 115,700 336 272,159 1,625 527,643 20,336 17,884 14,256 4,378,840 6,131,660 5,487,105 Chicago 82 33,096 55 25,684 3,533 415,171 68,943 60,520 37,592 14,054,405 18,793,460 14,125,543 St. Louis 210 24,144 254 26,178 629 102,686 33,998 31,691 19,414 5,605,465 7,644,600 6,110,660 Q Minneapolis... 66 4,759 24 19,075 1,073 259,695 23,706 21,589 10,748 2,942,362 3,908,858 2,770,009 O Kansas City.... 1,416 251,874 405 227,946 5,022 854,494 58,246 55,226 30,801 8,980,368 12,715,407 10,112,923 3 Dallas 620 72,441 118 25,665 1,196 267,237 28,027 29,360 14,149 4,481,610 7,307,341 4, 865,992 San Francisco., 1,585 289,638 629 166,899 1,928 407,164 43,338 30,218 16,209 8,055,574 8,668,570 7,305,321 o Total: 1921. 5,783 1,141,612 3,580 1,175,597 42,882 9,004,996 574,910 130,166,596 1920. 6,671 1,799,856 j 2,695 1,644,775 42,716 19,551,328 504,198 179,505,223 CO 4,844 2,056,827 ! 1,326 1,119,942 30,265 17,230,824 341,594 156,901,016 1 For list of Federal Reserve branch cities, see page 80. to to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 71.—NUMBER OF MEMBER BANKS, AND OF NONMEMBER BANKS ON PAR LIST, IN EACH FEDERAL RESERVE DISTRICT, ON THE 15TH OF EACH to MONTH IN 1921. 00 o Total. Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Date. Non- Non- Non- I Non- Non- Non- Non- Member member Member member Member member Member I member Member member Member member Member member banks. banks on banks. banks on banks. banks on banks, t 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. 9,637 19,101 437 256 784 328 441 1,080 611 1,261 464 409 1-3 Feb. 15. 9,668 19,023 439 254 787 327 443 873 1,082 613 ,201 472 407 Mar. 15. 9,696 18,804 436 256 790 325 702 444 874 1,083 611 L,046 484 403 Apr. 15. 9,726 18, 792 436 256 788 327 700 447 877 1,082 615 ^057 486 411 May 15. 9,747 18,781 437 255 790 329 700 455 877 1,083 617 .,038 489 407 June 15. 9,775 18,716 438 255 791 328 700 455 879 1,084 620 .,030 493 401 July 15. 9,779 18,599 438 255 792 328 699 459 879 1,075 620 ,019 494 401 Aug. 15. 9,792 18,550 437 255 795 327 700 462 879 1,080 621 ,013 500 400 Sept. 15 9,795 18,503 437 255 795 328 700 464 1,079 620 1,013 503 399 Oct. 15. 9,803 18,388 436 258 795 328 701 467 1,086 622 ,004 507 402 Nov. 15 9,805 18,319 436 256 797 329 701 471 881 1,084 624 ,001 511 396 Dec. 15. 9,827 18,217 436 257 800 332 704 | 472 884 1,085 625 994 513 394 Dec. 31. 9,841 18,102 436 257 800 334 704 ' 473 1,085 626 990 515 390 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. 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. 1,420 4,259 571 2,523 1,009 2, 875 I 1,090 3,392 849 1,254 835 1,023 Feb. 15. 1,423 4,261 572 2,513 1,005 2,867 1,094 3,392 854 1,259 838 1,017 Mar. 15. 1,426 4,262 575 2,510 1,008 2,816 ' 1,092 3,392 854 1,257 844 1,010 Apr. 15. 1,430 4,261 577 2,515 1,012 2,797 1,093 3,393 856 1,247 856 999 May 15. 1,430 4,263 580 2,516 1,013 2,794 1,092 3,411 861 1,236 861 994 June 15. 1,430 4,263 583 2,507 1,015 2,770 | 1,093 3,407 868 1,220 865 996 July 15. 1,432 4,261 585 2,498 1,016 2,760 1,092 3,337 867 1,211 865 995 Aug. 15. 1,436 4,262 584 2,498 1,017 2,754 1,089 3,308 866 1,203 868 988 Sept. 15 1,439 4,260 584 2,499 1,020 2,739 i 1,087 3,282 863 1,199 867 986 Oct. 15. 1,444 4,240 585 2,496 1,021 2,715 | 1,083 3,220 864 1,194 865 978 Q Nov. 15. 1,443 4,235 585 2,495 1,020 2,692 ! 1,085 3,201 861 1,183 861 976 O Dec. 15. 1,443 4,234 586 2,488 1,023 2,662 I 1,097 3,172 861 1,154 855 973 Dec. 31. 1,443 4,235 588 2,489 1,024 ! 2,635 1,103 3,091 861 1,151 857 972 O to CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS. to Co to No. 72.—EARNINGS AND EXPENSES OF EACH FEDERAL RESERVE BANK DURING 1921. EARNINGS. Total. Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. 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 co ra . n- Discounted bills $109,598,6' $6,007,117$30,762,021 $6,849,905 $8,041,788 $6i,,1 16666,,477 $66,,662244,,052 $18,829,302J$4, 739,032|$4,649,554 $5,134,004 $3,829,840 $7,965,583 Purchased bills 5,234,141 515,192 1,829,665 513,710 737,533 184,592 154,440 374,864) 41,427| 13 49,148 7,980 825,577 United States securities 6,253,854 415,931 1,955,970 597,553 479,840 196,299 533,022 858,205 284,151! 142,001 382,855 171,151 236,876 Domestic transfers bought and sold, net. 326,148 61,673 162,555J | 12,581 89,339 Deficient reserve penalties 1,177,562 13,778 63,804 34,442j 57,017 175, 797 90,825 123,250| 80,640- 157,158 126,434 124,163 130,254 Miscellaneous 274,225 16,644 93,479 12,4851 13,012 6,514 4,313 33,994j 21,065j 5,004 20,417 21,175 26,123 Total earnings [ 122,864,605 6,968,662 34,704,939 '8,095; 9,390,863 729,679 7,406,652 20,382,1701 5,166,315j 4,966,311 5,712,858 4,243,648 1,184,413 CURRENT EXPENSES. Salaries: Bank officers $2,383,994 $135,500 $498,114 $124,020 $194,464 $149,702 $163,432 $332,652 $151,043 $115,499 $160,543 $133,545 $225,480 Clerical staff 15,201,393 905,811 3,928,025 999,460 1,166,854 858,861 530,325 1,888,877 931,158 517,448 1,051,627 735,904 1,687,043 Special officers and watchmen 789,879 31,648 208,144 69,934 82,332 29,941 22,653 138,792 28,069 23,618 45,976 34,598 74,174 All other 1,102,984 35,233- 303,314 84,970 136,031 62,102 40,751 156,492 38,763 18,807 55,097 82,470 88,954 Governors' conferences 7,751 461 448 343 329 550 819 615 675 770 620 714 1,407 Federal Reserve agents' conferences... 4,443 118 156 137 133 88 442 244 287 403 211 295 1,929 Federal Advisory Council 10,522 200 1,200 382 859 493 1,259 1,099 1,200 908 410 200 2,312 Directors' meetings 168,556 9,263 32,101 6,509 7,133I 7,021 25,708 11,731 11,948 11,902 25,823 7,004 12,413 Traveling expensesl 357,962 8,436 37,891 17,839 17,600 33,931 26,251 48,131 29,373 35,505 28,705 39,185 35,115 Assessment for Federal Reserve Board expenses 741,436 57,218 202,802 62,008 77,182 38,723 30,242 105,227 31,597 25,554 32,749 25,759 52,375 Legal fees 48,166 1,200 2,275 5,745 2,000 4,292 7,538 116 11,628 6,769 93 6,510 Insurance (life, fidelity, casualty, work- i men's compensation, and general liability) 532,307 18,054 82,822 42,987 52,859 20,709 28,170 42,172 39,607 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Banking house: 1 Taxes 178,178 47,336 8,036 22,820 28,826 7,873 8,788 2,115 1,965 13,654 30,052 6,713 Fire insurance , 20,073 132 324 2 79 2,523 68 244 169 1,154 1,932 7,547 59 Light, heat, and power 119,408 3,110 9,678 34,794j 11,556 4,093 8,536 3,184 1,556 7,781 27,632 7,488 Repairs and alterations (not of j permanent character) 163,655 9,279J 79,1171 4,120 16,157 2,609 2% 1,015 7,1 18,476 25,498 Allother , 70,231 1,906 20,9931 10,500J 20,989 1,333 488 168 13,854|.. Furniture and equipment 1,508,923 73,692 89,418 309,696| 85,684 197,329 33,399 118,158 54,082 53,368 183,223 155,843 155,031 Rent 1,312,799 95,637 422,660 10,621 148,511 16,331 25,999 273,625 63,897 44,128 63,964 9,660 137,766 Fire insurance—furniture and equip- m ment 17,492 1,034 911 321 2,341 1,313 2 13 7,141 907 112 1,257; 194 2,263 Office and other supplies 115,928 38,1031 51,119 29,341 26,783 120,847 19,718 29,921 39,475 49,818 50,566 Printing and stationery 1,022,540 77,141 i 136,319 64,508; 107,494 52,037 58,406 128,770| 46,091 67,151 65,507 64,587 154,529 Telephone 201,9971 16,365j 47,388 28,5581 14,901 4,910 4,987 31,872J 8,217 7,248 10,984 9,652 16,915 Telegraph 610,763! 10,960 65,191 20,385! 38,018 34,210 57,223 71,621 43,262 23,494 77,611 68,680 100,108 Postage (other than on money and security shipments) 1,085,206 72,779! 127,817 70,092i 89,158 72,360 60,391 141,220J 85,511 80,932 130,030 66,336 88,580 Expressage (other than on money and security shipments) 46,024| 1,065 3,753 3,575! 2,837 2,331 4,215 4,2261 1,968 2,207 3,152 3,610 13,085 Security shipments 3118,5921 9,436! 33,461 5,330J 8,604 14,710 4,199 13,033 5,072 2,101 8,035 31,603 13,008 Currency and coin shipments » 928,3871 106,907 185,674 107,114 80,170 53,003 58,857 107,502 30,646 20,420 42,962 3 74,870 60,262 Federal Reserve currency: Original cost, including shipping charges 4,208,211! 302,264 1,091,592 320,923 209,295 262,614 203,504 768,220 236,047 124,584 124,491 65,915 498,762 Cost of redemption, including ship- ! ping charges 924,2861 88,526 213,28' 113,211 90,999 77,712 66,972 106,811 20,049 16,552 32,054 23,150 74,963 Taxes on Federal Reserve bank note circulation 692,339j 56,749 136,310 58,313 75,920 32,240 51,963 98,655 26,500 26,980 62,938 22,286 43,485 AU other expenses 893,826 42,703 152,469 54,496 145,961 40,796 25,445 107, 710 49,468 29,384 70,385 61,571 113,438 Total current expenses 36,066,065 2,239,007j 8,167,780 2, 766,443 2,956,802 2,127,174 1,580,585 4,852,258 ], 961,250 1,325,867 2,411,079 1,860,856 3,816,964 1 Other than those connected with governors' and agents' conferences and meetings of directors and of the advisory council. 2 Credit. to 3 Cost of security shipments at Dallas from January to June included with cost of currency and coin shipments. CO CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 72.—EARNINGS AND EXPENSES OF EACH FEDERAL RESERVE BANK DURING 1921—Continued. feO PROFIT AND LOSS ACCOUNT. CO. Total. 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. Earnings $122,864,605 $6,968,662 $34,704,939 $8,008,095 $9,390,863 $6,729,679 $7,406,652 $20,382,170 $5,166,315 $4,966,311 $5,712,858 $4,243,648 $9,184,413 Current expenses. 36,066,065 2,239,007 8,167,780 2,766,443 2,956,802 2,127,174 1,580,585 4,852,258 1,961,250 1,325,867 2,411,079 1,860,856 3,816,964 Current net earnings 6,798,540 4, 729,655 26,537,159 5,241,652 6,434,061 4,602,505 5,826,067 15,529,912 3,205,065 3,640,444 3,301,779 2,382,792 5,367,449 Additions to current net earnings: Amounts deducted from reserve lor depreciation on U.S. bonds... 360,856 43,681 127,192 57,296 6,827 8,379 38,605!. 78,876 All other 131,536 3,894 3,654 8,188 1 69,438 4,202 622 4,826 13,241 17,264 3, S26J 1,497 Total additions. 492,392| 47,575 3,654 135,380| 126,734 11,029 9,0011 4,826 13,241 17,264 80,373 Deductions from current net earnings: Depreciation allowances on bank premises 2 1,251,675 489,000 60,404 30,000; 64,759 54,069 47,088J 145,000 3 112,224 5, 275 8K,114 139,230 16,512 Reserve for possible losses 2,861,500 100,000 100,000 250,000J 500,000 150,000 500,000 200,000 561,500 500,000 Reserve for self insurance 400,000 250, 000 100,000 50,000 Reserve for depreciation on U. S. bonds 49,295 49,295 Allother...- 641,237 6,877 136,57' 11,653 15,838 41,761 384,621 4,156 1,279 20,087 10,810 Total deductions. 5,203,70. 495,87 446,981 37,578 276,412 219,907 338,849 1,029,621 266,380 506,554 288,114 770,112 527,322 Net deductions from current net earnings 4,711,315 448,302 443,327 ^97,802 149,678 208,878 329,848 1,024, 795 253,139 489,290 245,683 769,228 446,949 Net earnings available for dividends, surplus, and franchise tax 82,087,225 4,281,353 26,093,832 5,339,454 6,284,383 4,393,6 5,496,219 14,505,11' 2,951,926 3,151,154 3,056,096 1,613,564 4,920,500 Dividends paid 6,119,673 473,109 1,608,721 517,663 660,228 322,203 245,862 853,785 270,253 211,657 268,620 252,211 435,361 Transferred to surplus account 15,993,086 772,324 3,782,671 935,239 2,329,442 693,792 770,106 2,075,323j 1,042,564 488,530 486,918 1,361,353 1,254,824 Franchise tax paid U.S. Government.. 59,974,466 3,035,920 20,702,440 3,886,552 3,294,713 3,377,632 4,480,251 11,576,009) 1,639,109 2,450,967 2,300,558 3,230,315 1 Includes $37,209 account assessment for expenses of Federal Reserve Board. 3 Includes reserve of $100,000 for dismantling old building. 4 Net additions. 2 Exclusive of amounts charged to super surplus as follows: Cleveland, $125,000; Richmond, $225,277; Chicago, $2,030,000; San Francisco, $250,000; total, $2,630,277. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REIMBURSABLE EXPDNDITURES OF FISCAL AGENCY DEPARTMENT. 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. 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 nc an isco. Total expenditures during 1921 $2,609,754 $204,539 $481,787 $122,435 $292,969 $80,693 $99,113 $393,239 $150,475 $132,003 $253,504 $138,751 $260,246 Amounts reimbursable Jan. 1, 1921 939,309 86,989 224,647 37,855 82,020 23,888 39,920 84,243 70,417 54,307 112,033 23,658 99,332 Total 3,549,063 291,528 706,434 160,290 374,989 104,581 139,033 477,482 220,892 186,310 365,537 162,409 359,578 Reimbursements received during 1921.. 3,485,950 289,312 702,524 158,189 367,841 103,282 135,548 465,994 215,612 177,573 355,218 159,296 355,561 Balance reimbursable Jan. 1,1922. 63,113 2,216 3,910 2,101 7,148 1,299 3,485 11,488 5,280 8,737 10,319 3,113 4,017 Q CO X I Ox Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

to CO o RECEIPTS AND DISBURSEMENTS OF THE FEDERAL RESERVE BOARD FOR THE YEAR 1921. Balance, Jan. 1, 1921: Available for general expenses of the Board. $55,979. 53 £d Available for expenses chargeable to the Federal Reserve Banks 1,872,352.18 ^ Total $1,928,331.71 g RECEIPTS. O Available for general expenses of the Board: Assessments on Federal Reserve Banks for estimated general expenses of the Board $741,436. 29 Hj Refunds of expenditures during 1920 8,457.42 3 Subscriptions to Federal Reserve Bulletin 9, 233. 94 Refund by Treasury Department of salaries of money counters 28, 603. 27 3 Miscellaneous receipts and reimbursements 1,791.15 O Receipts for index digests of Federal Reserve Bulletins 6, 793. 63 gj Total receipts available for general expenses of the Board 796,315. 70 n Available for expenses chargeable to Federal Reserve Banks: # Assessments on Federal Reserve Banks— jg For cost of preparing Federal Reserve notes, including cost of redemption of incomplete M Federal Reserve notes 3,838, 776. 79 3 For expenses of gold shipments between Treasury offices and Federal Reserve Banks under § the provisions of section 16, Federal Reserve Act 45, 210. 80 w For expenses of leased-wire system 181, 610. 85 O For miscellaneous expenses 15,741.73 fc Total receipts available for expenses chargeable to Federal Reserve Banks 4,081,340.17 Total receipts 4,877,655.87 Total available for disbursements 6,805,987. 58 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISBURSEMENTS. For general expenses of the Board: Expenses for 1920, paid in 1921 36, 599. 34 Expenses for 1921 (per detailed statement) $722, 318. 86 Less accounts unpaid Dec. 31, 1921 15, 500. 55 706, 818. 31 Salaries of money counters reimbursable by Treasury Department 34,124. 32 Miscellaneous expenses reimbursable 235. 04 Total disbursements for general expenses of the Board 777, 777. 01 For expenses chargeable to Federal Reserve Banks: Cost of preparing Federal Reserve notes, including cost of additional equipment and redemption of incomplete Federal Reserve notes 5, 277, 714. 57 ^ Expense of gold shipments between Treasury offices and Federal Reserve Banks under the pro- © visions of section 16, Federal Reserve Act 106, 300.00 jg Expense of leased-wire system , 178,862.08 > Miscellaneous expenses 15,435.58 t"1 ^ Total disbursements for expenses chargeable to Federal Reserve Banks 5, 578, 312. 23 W Total disbursements 6, 356,089. 24 # Balance, Dec. 31, 1921: Available for accounts unpaid, Dec. 31, 1921 15, 500. 55 O Available for general expenses of the Board 59,017. 67 > Available for expenses chargeable to Federal Reserve Banks unpaid, Dec. 31, 1921 375, 380.12 § Total 449,898.34 to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DETAILED STATEMENT OF EXPENSES. J a a r n y u . - F a e r b y r . u- March. April. 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 $7,143.31 $7,143.31 $5,922.53 $5,784.98 $6,550.25 $7,001.71 $7,135.18 $7,178.18 $7,075.44 $7,133.73 $7,179.58 $7,117. 1,365.31 Office of secretary 1,358.33 1,358.33 1,358.34 1,358.33 1,358.33 1,358.34 1,358.33 1,483.33 1,483.34 1,508.33 2,057.92 2,057.93 18,099.18 Office of assistant to governor 1,470.41 1,555.42 1,555.42 1,563.74 1,419.58 1,563.76 906.86 816.67 816.68 816.65 12,485.19 Office of general counsel 2,697.48 2,637.50 2,497.52 2,547.48 2,647.50 2,647.52 2,184.98 2,601.67 2,618.36 2,618.31 2,618.33 2,618.36 30,935.01 Office of statistician 2,088.73 2,098.76 2,098.76 2,107.07 2,419.42 2,432.09 2,468.73 2,468.76 2,613.21 2,418.73 2,318.76 2,394.76 27,927.78 Office of fiscal agent 503.33 503.33 503.34 503.33 528.33 503.34 503.33 503.33 503.34 503.33 503.33 503.34 6,065.00 Division of examination 7,083.30 7,155.00 7,355.03 7,404.97 7,405.00 7,605.03 7,910.37 7,811.81 7,652.13 7,402.03 7,193.76 7,027.13 89,005.56 Division of reports and statistics 5,969.28 6,072.50 6,194.56 6,365.65 6,327.48 6,412.10 6,539.46 7,071.84 6,632.17 6,594.49 6,594.56 6,560.07 77,334.16 Division of chief clerk 1,941.14 1,970.01 1,970.01 1,979.98 1,963.34 1,871.01 2,018.73 2,021.75 2,028.77 2,033.73 1,738.75 1,738.77 23,275.99 Division of gold settlement 1,286.22 1,361.17 1,405.44 1,425.07 1,365.58 1,316.35 1,311.66 1,263.34 1,323.35 1,321.82 1,312.08 1,333.08 16,025.16 Division of supply agent 450.00 450.00 450.00 450.00 450.00 450.00 463.75 463.75 463.75 463.75 463.75 463.75 5,482.50 Division of currency 641.24 641.25 641.26 656.24 656.25 656.26 642.37 544.83 497.51 487.49 914.58 914.60 7,893.88 Division of printing 408.75 408.75 408.75 423.33 423.33 423.34 423.33 423.33 423.34 423.33 423.33 423.33 5,036.24 Division of analysis and research 3,803.30 3,838.33 3,975.03 4,033.30 3,937.21 3,859.20 4,032.48 4,032.49 4,101.03 4,140.81 4,207.49 4,311.69 48,272.36 Division of architecture 888.88 888.89 888.89J 888.88 888.90 888.88 888.88 888.89 888.90 10,666.65 Division of issue and redemption 6,088.55 6,206.39 6,581.73 6,574.88 6,577.55 6,576.73 6,889.14 6,690.85 6,573.52 6,850.47 6,713.72 6,514.18 78,837.71 Messengers 1,003.12 1,020.02 1,020.02 1,031.62 1,031.69 1,031.69 934.96 980.02 1,025.02 1,028.29 1,031.69 1,031.69 12,169.83 Charwomen 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 1,152.00 Total 44,921.37 45,404.96 44,922.63 45,194.86 46,041.72 46,693.37 46,708.54 47,340.83 46,815.85 46,730.18 46,256.51 45,994.69 553,029.51 Railway loan advisory committee to the Federal Reserve Board 786.66 786.67 703.34 168.22 150.00 150.001 150.00 150.00 150.00 150.00 150.00 150.00 3,644.89 Total personal services 45,708.03 46,191.63 45,625.97 45,363.08 46,195.72 46,843.371 46,858.54 47,490.83 46,965.85 46,880.18 46,406.51 46,144.69 556,674.40 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NONPERSONAL ^SERVICES. Transportation and subsistence: Board members and their staff 465.58 873.36 87.02 119.05 496.38 796.01 250.63 278.37 185.73 277.41 294.84 101.33 4,225.71 Office of secretary 9.10 176.87 17.31 203.28 Office of assistant to governor 43.93 22.06 60.16 6.60 132.75 Office of general counsel 40.03| 40.03 Division of examination 2,921.24! 3,471.24 4,143.74 3,911.39 2,976.17 5,852.29 5,143.49 412.97 3,379.42 4,848.71 3,335.91 3,944. 44,340.87 Division of analysis and research 45.76 298.47 30.78 124.19 29.43! 10.02 51.25 45.06J 634.96 Division of architecture 8.11 47.94 29.16]. 85.21 Total all other divisions, including localcarfare 37.50 75.00 40.55 74.82| 112.6' 273.75 35.00 82.62 731.91 Communication service: Telephone 330.71 249.11 245.06 312.53 276.85 281.46 586.26 598.10| 603.70 584.49 590.61 594.67! 5,253.55 Telegraph 863.44 823.05 1,546.05 1,118.10 1,163.46 1,295.90 1,077.58 1,015.44: 1,118.45 1,012.87 1,051.12 1,055.12 13,140.58 Postage 61.14 35.00 98.22 60.53 17.27 40.00 61.21 37.00 54.00 464.37 Printing, binding, etc 5,892.05 1,580.07 10,609.43 3,615.16 813.05 6,555.24 5,706.54 2,910.62 2,875.31 2,240.62 2,545.44 2,198.49 47,542.02 Repairs 37.45 62.21 40.98| 15.75 91.61 64.28 86.74 27.60 '16.28 21.531 33.27 76.96 574.66 Electricity (light and power) 35.20 35.20 35.20 35.20 35.20 35.20 51.02 58.54 61.31 62.13 69.78 71.67, 585.65 Steam (heat) 45.00 45.00 45.00 45.00 35.00 45.00| 45.00 45.00 350.00 Miscellaneous unclassified 88.07 250.5' 543.02| 968.20 332.99 331.61 404.30 814.79 916.00 429.23! 286.58 285.03 5,650.39 Equipment rental 291.80 375.00 378.00 375.00 375.00 378.00 375.00 375.001 381.75 375.(X)' 375 00 381.75 4,436.30 Supplies: Stationery and office 713.36 620.09 805.27 1,093.58 487.28 1,544.74 187.12 999.14 1,642.87 522.13 10,180.71 Periodicals. 269.50 68.30 168.83 75.00 34.35 1,025.06 1.60 202.70i 33.90 12.46 6.00 15.00 1,912.70 Equipment: Furniture and office 345.16 555.48 679.33 1,591.86 1,630.02 391.60 127.22 379.34J 570.57 425.39 449.29 232.24 7,377.50 Books 99.40 66.90 113.09 24.35 40.00 163.91 142.95| 9.02J 5.60 1.80 10.22J 93.20| 770.44 Rent 1,254.46 1,254.46 l,254.46i 1,254.46 1,345.79 1,345.80) 1,512.47 1,512.471 1,512.47 1,588.01 1,588.01! 1,588.01 17,010.87 Total 13,804.93j 10,764.13 20,694.01 14,529.28 10,865.49 19,793.05 16,280.13 10,189.72 11,943.82 13,052.07 12,341.25 11,386.58165,644.46 Grand total. 59,512.96 56,955.76 66,319.98 59,892.36 57,061.21 66,636.42 63,138.67 57,680.55 58,909.67 59,932.25 58,747.76 57,531.27,722,318.86 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

240 REPORT OF THE 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, 1921, showing the capital, surplus, and total resources, as compiled from the latest available figures: Total resources. DISTRICT NO. 1. CONNECTICUT. (See also District No. 2.) New Britain—New Britain Trust Co $400,000 $200,000 $3,848,218 New Haven—Union & New Haven Trust Co 650,000 650,000 9,694,870 South Manchester—Manchester Trust Co 200,000 100,000 1,921,036 Waterbury—Colonial Trust Co 500,000 600,000 6,294, 278 MAINE. Bangor—Merrill Trust Co 500,000 400,000 9, 873,299 Portland—Fidelity Trust Co 400,000 400,000 15,555,560 Sanford—Sanford Trust Co 100,000 25,000 1,246,276 MASSACHUSETTS. Arlington—Menotomy Trust Co 200,000 100,000 2,608,030 Boston— American Trust Co 1, 500,000 2,000,000 31,186,243 Beacon Trust Co. 600,000 1, 400, 000 21,684,301 Commonwealth Trust Co 1, 500,000 1,000,000 31,066,680 Exchange Trust Co 1,000,000 1,000,000 16,864,407 The Hub Trust Co 500,000 60, 000 2, 733, 942 International Trust Co 2,000,000 2,000,000 39,615,720 Liberty Trust Co 750,000 750,000 13,386, 806 Market Trust Co 400,000 100, 000 4,126, 238 Massachusetts Trust Co 1,000,000 500,000 16,308,937 Metropolitan Trust Co 500,000 400,000 5, 655, 628 New England Trust Co 1,000,000 2,000,000 28, 588,915 Old Colony Trust Co 7,000,000 9,000,000 137,613,132 State Street Trust Co 2,000,000 2,500,000 39,980,030 United States Trust Co 1,000,000 1,000,000 17,966, 560 Cambridge— Harvard Trust Co 400,000 400,000 10,225,782 Inman Trust Co 200,000 50,000 1,320,910 Fitchburg—Fitchburg Bank & Trust Co 500,000 450,000 5,006,157 Gloucester—Gloucester Safe Deposit & Trust Co 200,000 200,000 4,778,163 Greenfield—Franklin County Trust Co 200,000 100,000 2, 884, 748 Holyoke—Hadley Falls Trust Co 500,000 250,000 7, 446,869 Lawrence—Merchants Trust Co 300,000 150, 000 8,153,074 Lynn—Security Trust Co 200,000 300,000 7, 768,527 New Bedford—New Bedford Safe Deposit & Trust Co 300,000 400,000 5,533,936 Newton—Newton Trust Co 560,900 560,900 9,188,661 Norwood—Norwood Trust Co 200,000 18,000 3,036,412 Salem—Naumkeag Trust Co 250,000 150,000 5,590,770 Waltham—Waltham Trust Co 300,000 200,000 5,327,750 Winchester—Winchester Trust Co 100,000 25,000 1,133,003 Worcester—Worcester Bank & Trust Co 1, 500,000 1,000,000 29,789,184 RHODE ISLAND. Providence- Industrial Trust Co 3,000,000 4,000,000 82,292,151 Rhode Island Hospital Trust Co 3,000,000 4,000,000 62,470,352 Union Trust Co 1,000,000 500,000 14,758, 816 DISTRICT NO. 2. CONNECTICUT. (See also District No. 1.) Bridgeport—Bridgeport Trust Co 1,000,000 300,000 8,663,349- NEW JERSEY. (See also District No. 3.) Asbury Park—Seacoast Trust Co 144,800 75,000 3,105,984 200,000 150,000 5,998,939- Bayonne—Bayonne Trust Co , 200,000 100,000 4,107,04? Bloomneld—Bloomfield Trust Co Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 241 Capital. Surplus. res T o o u t r a c l es. DISTRICT NO. 2—Continiied. NEW JERSEY—continued. Bogota—Bank of Bogota $50,000 $15,000 $545,664 Boonton—Boonton Trust Co 100,000 50,000 1.182,774 Cranford—Cranford Trust Co 100,000 50,000 1,902,204 East Orange— East Orange Bank 150,000 50,000 2,650,380 Savings Investment & Trust Co 500,000 300.000 10,090,821 Elizabeth—Elizabethport Banking Co 250,000 ioo;ooo 4,512,970 Franklin—Sussex County Trust Co 100,000 30,000 930,132 Glen Ridge—Glen Ridge Trust Co 100,000 30,000 1,354,585 Hackensack—Peoples Trust & Guaranty Co 600,000 400,000 7,647,158 Hasbrouck Heights—Bank of Hasbrouck Heights. 50,000 10,000 353,563 Hoboken—Jefferson Trust Co 400,000 100,000 5,783,970 Jersey City— Claremont Bank of Jersey City 200,000 50,000 5,704,098 Commercial Trust Co. of New Jersey 1,000,000 1,500,000 37,186,787 The New Jersey Title Guarantee & Trust Co.. 1,000,000 1,000,000 20,024,694 Montclair— Bank of Montciair 100,000 100,000 3,417,884 Montclair Trust Co 300,000 100,000 5,183,718 Morristown—Morristown Trust Co 600,000 300,000 7,970,763 Newark- City Trust Co 200,000 100,000 3,341,203 Federal Trust Co 1,000,000 500,000 16,881,286 Fidelity Union Trust Co 5,250,000 1,750,000 58,493,434 Ironbound Trust Co 200,000 100,000 10,558,533 Nutley—Bank of Nutley 100,000 35,000 1,857,550 Orange—Trust Co. of Orange 100,000 25,000 1,170,753 Passaic— The Passaic Trust & Safe Deposit Co 500,000 300,000 12,016,258 Peoples Bank & Trust Co 400,000 400,000 7,656,372 Paterson—The Hamilton Trust Co 500,000 500,000 9,348,285 Plainfield—The Plainfield Trust Co 300,000 400,000 9,092,803 Rahway—Rah way Trust Co 100,000 50,000 1,027,972 Ridgefield Park—Ridgefield Park Trust Co 100,000 25,000 1,951,448 Ridgewood—Ridgewood Trust Co 150,000 50,000 2,102,464 Rutherford—Rutherford Trust Co 100,000 100,000 1,656,429 Westfield— Peoples Bank & Trust Co 100,000 100,000 2,628,948 Westfield Trust Co 100,000 100,000 2,832,819 West Hoboken—Hudson Trust Co 1,000,000 1,000,000 27,644,115 NEW YORK. Adams—Citizens Trust Co 150,000 75,000 1,560,219 Albion—Orleans County Trust Co 100,000 50,000 921,058 Amsterdam—Montgomery County Trust Co 200,000 100,000 3,730,718 Batavia—The Bank of Genesee 100,000 125,000 1,680,372 Belmont—State Bank of Belmont 50,000 50,000 510,355 Binghamton— Peoples Trust Co 500,000 100,000 5,889,609 Blasdell—Bank of Blasdell 30,000 9,837 163,765 Brooklyn— Bank of Coney.Island 200,000 100,000 4,139,800 Brooklyn Trust Co 1,500,000 2,711,408 40,014,197 Manufacturers Trust Co 2,500,000 2,000,000 46,846,275 Mechanics Bank 1,600,000 1,000,000 39,107,879 North Side Bank of Brooklyn 200,000 200,000 7,907,051 Peoples Trust Co 1,500,000 1,500,000 46,241,666 Buffalo- Buffalo Trust Co 1,000,000 1,375,000 20,032,786 Citizens Trust Co 1,250,000 1,250,000 23,253,027 Fidelity Trust Co 1,000,000 1,000,000 21,681,605 Liberty Bank of Buffalo 2,000,000 1,750,000 40,157,986 Marine Trust Co 10,000,0.00 7,000,000 124,307,569 Peoples Bank of Buffalo 1,000,000 600,000 18,591,765 Canisteo—First State Bank 50,000 29,000 598,241 Cape Vincent—Citizens Bank of Cape Vincent.. 50,000 10,000 321,023 Chatham—State Bank of Chatham 50,000 50,000 1,825,714 Depew—The Bank of Depew 50,000 15,000 640,457 Dunkirk—Dunkirk Trust Co., 250,000 125,000 1,488,881 East Aurora- Bank of East Aurora 100,000 25,000 1,881,881 Erie County Trust Co 100,000 50,000 1,501,428 Elmira—Chemimg Canal Trust Co 600,000 400,000 9,100,202 Endicott—State Bank of Endicott 50,000 35,000 1,578,411 Floral Park—Floral Park Bank 50,000 50,000 1,299,088 Fredonia—Citizens Trust Co 100,000 100,000 1,733,706 Geneva—Geneva Trust Co 250,000 225,000 3,746,386 Gloversville—Trust Co. of Fulton County 250,000 150,000 1,397,359 Hamburg—The Peoples Bank of Hamburg 60,000 90,000 1,810,090 Hammondsport—The Bank of Hammondsport. 50,000 50,000 1,286,745 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 REPORT OF THE FEDERAL RESERVE BOARD. Total DISTRICT NO. 2—Continued. NEW YORK—continued. Hicksville—Bank of Hicksville $25,000 $125,000 $1,785,682 Ithaca—Ithaca Trust Co 200,000 100,000 4,295,236 Johnson City—Workers Trust Co 100,000 100,000 3,253,853 Katonah—Northern Westchester Bank 50,000 25,000 573,222 Kingston—Kingston Trust Co 250,000 140,000 2,696,137 Lackawanna—The American Bank of Lackawanna 100,000 25,000 588,898 Little Falls—Herkimer County Trust Co 350,000 350,000 4,595,433 Lowville—Lewis County Trust Co 177,000 88,500 1,134,646 Malone—Peoples Trust Co 300,000 100,000 3,267,313 Millbrook—Bank of Millbrook 50,000 50,000 1,091,395 Mineola—Nassau County Trust Co 100,000 100,000 2,561,661 New York- Bank of America 5,500,000 5,500,000 90,757,486 Bank of the United States 1,500,000 300,000 40,978,752 Bankers Trust Co 20,000,000 11,250,000 343,169,540 Central Union Trust Co 12,500,000 15,000,000 261,687,303 Columbia Bank 2,000,000 1,000,000 31,196,429 Columbia Trust Co 5,000,000 6,000,000 103,679,546 Commonwealth Bank of the City of New York 400,000 600,000 10, 454,247 The Continental Bank 1,000,000 500,000 9,536,648 Corn Exchange Bank 7, 500,000 7,500,000 212,463,142 Equitable Trust Co 12,000,000 14,500,000 256,409,477 Farmers Loan & Trust Co 5,000,000 10,000,000 145,362,755 Fidelity International Trust Co 1,500,000 I', 250,000 26,516,727 Fifth Avenue Bank 500,000 2,000,000 24,575,419 Fulton Trust Co 500,000 250,000 9,665,610 Guaranty Trust Co 25,000,000 15,000,000 471,043,358 Industrial Bank of New York 1,000,000 500,000 8,083,999 Lincoln Trust Co 2,000; 000 1,000,000 29,629,923 Manhattan Co., Bank of the 5,000,000 12,500,000 165,333,590 Mercantile Trust Co 1,000,000 500,000 22,762,427 Metropolitan Trust Co. of the City of New York 2,000,000 3,000,000 33,378,422 Mutual Bank 200,000 600,000 13,289,422 New Netherland Bank 600,000 300,000 9,274,187 New York Trust Co 10,000,000 10,000,000 191,562,470 Pacific Bank 1,000,000 1,500,000 31,777,335 U. S. Mortgage & Trust Co 3,000,000 3,000,000 68,437,454 United States Trust Co 2,000,000 12,000,000 70,718,443 W. R. Grace <fc Co.'s Bank 500,000 800,000 6,674, 264 Yorkville Bank 200,000 600,000 20,623,512 Niagara Falls—Power City Bank 500,000 450,000 10,207,337 Nyack—Rockland County Trust Co 100,000 25,000 2,309,946 Ogdensburg—St. Lawrence Trust Co 100,000 10,000 982,041 Olean—Olean Trust Co 100,000 20,000 1,480,338 Oneida—Madison County Trust & Deposit Co 200,000 120,000 3,486,448 Orchard Park—Bank of Orchard Park 30,000 6,000 640,673 Perry—Citizens Bank 50,000 50,000 1,141,001 Port Chester—Mutual Trust Co. of Westchester County 300,000 100,000 3,176,179 Rochester—Lincoln-Alliance Bank 2,000,000 2,000,000 42,603,218 Rome—Rome Trust Co 300,000 60,000 4,400,036 Sehenectady—Schenectady Trust Co 300,000 62,500 10,055,742 Stony Brook—Bank of Suffolk County 50,000 25,000 504,676 Syracuse- City Bank Trust Co 2,000,000 1,000,000 19,808,469 First Trust & Deposit Co • 2,500,000 1,000,000 40,174,801 Syracuse Trust Co 1, 500,000 750,000 26,048,061 Utica— Citizens Trust Co. of Utica 500,000 500,000 15,610,383 Oneida County Trust Co 250,000 250,000 3,031,359 Utica Trust & Deposit Co 1,000,000 700,000 12,854,856 Warsaw—Trust Co. of Wyoming County 100,000 20,000 904,733 Watertown— Northern New York Trust Co 400,000 400,000 8,974,602 Westbury—Bank of Westbury 50,000 13,250 755,239 White Plains—County Trust Co 150,000 50,000 5,435,011 DISTRICT NO. 3. DELAWARE. Milford—Milford Trust Co 50,000 87, 500 1,208,350 Wilmington- Equitable Trust Co 500,000 500,000 5,376,863 Security Trust & Safe Deposit Co 600,000 700,000 6,218,407 Wilmington Trust Co. 1,000,000 515,000 13,209,901 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 243 Total resources. DISTRICT NO. 3—Continued. NEW JERSEY. (See also District No. 2.) Atlantic City- Bankers Trust Co $100,000 $30,000 $921,066 Equitable Trust Co 200,000 150,000 3,203,946 Burlington—Burlington City Loan & Trust Co 100,000 100,000 1,891,800 Camden—Camden Safe Deposit & Trust Co 500,000 800,000 11,909,527 Gloucester City—Gloucester City Trust Co 100,000 50,000 1,095,247 Princeton—Princeton Bank & Trust Co 200,000 150,000 2,621,345 Riverside—Riverside Trust Co 100,000 100,000 1,910,803 Swedesboro—Swedesboro Trust Co 100,000 20,000 609,182 PENNSYLVANIA. (See also District No. 4.) Allentown—Penn Trust Co 300,000 100,000 2,281,937 Carlisle—Carlisle Trust Co 150,000 150,000 2,250,209 Chester—Cambridge Trust Co 500,000 300,000 5,415,056 Dubois—Union Banking & Trust Co 250,000 426,200 2,635,671 Harrisburg—Dauphin Deposit Trust Co 300,000 300,000 4,373,621 Hazleton— American Bank & Trust Co 200,000 100,000 3,719,593 Markle Banking & Trust Co 300,000 600,000 6,258,622 Peoples Savings & Trust Co 250,000 170,000 3,715,673 Honesdale—Wayne County Savings Bank 200,000 325,000 4,267,571 Huntingdon—Grange Trust Co 125,000 20,000 754,059 *Kulpmont—Dime Deposit Bank 50,000 35,000 501,087 Lewistown—Lewistown Trust Co 125,000 25,000 762,062 Lykens—Miners Deposit Bank 50,000 110,000 943,679 Mill Hall—The Mill Hall State Bank 35,000 15,000 400,450 New Oxford—Farmers and Merchants Bank 50,000 50,000 737,228 Olyphant—The Olyphant Bank 100,000 300,000 2,264,978 Philadelphia— Aldine Trust Co 750, 000 480,000 3,853,873 Colonial Trust Co 500,000 500,000 8,375,142 Commercial Trust Co 2, 000, 000 2,750, 000 S9,523,233 Federal Trust Co 200, 000 100, 000 3,894,514 Fidelity Trust Co 5, 200, 00016, 000,000 57, 072,356 Girard Trust Co 2, 500, 000 7,500, 000 57,208,292 Northeast-Tacony Bank 250,000 75, 00i 647, 928 Oxford Bank of Frankford 250, 000 55,000 2,759, 711 Pennsylvania Co. for Insurance on Lives and Granting Annuities 2, 000, 000 5,000, 000 40,633,971 Peoples Bank of Philadelphia 200, 000 35, 000 4,923,471 Philadelphia Trust Co 1, 000, 000 4,000, 000 26,130,548 Provident Life & Trust Co 2, 000,000 5,000, 000 119,4? 6, 6 0 Rittenhouse Trust Co 500, 000 100, 000 3, 503,076 West Philadelphia Title & Trust Co 500, 000 500,000 7,977,454 Reading- Berks County Trust Co 500, 000 405,000 5,115,389 Northeastern Trust Co 360, 483 48,173 1,626, 291 Schuylkill Haven—Schuylkill Haven Trust Co 125, 000 55,000 1,385,633 Shamokin—Dime Trust & Safe Deposit Co 125,000 125,000 2,002,298 Tamaqua—The Peoples Trust Co 125, 000 40,000 1,277,545 Wilkes-Barre—Dime Bank Title & Trust Co 200, 000 150,000 2,796,440 Williamsport— Northern Central Trust Co 500, 000 250,000 3,939,826 Susquehanna Trust & Safe Deposit Co 400, 000 400, 000 3,263,804 Williamstown—Williams Valley Bank 50, 000 50, 000 714,774 DISTRICT NO. 4. KENTUCKY. (See also District No. 8.) Georgetown—Farmers Bank & Trust Co 105, 000 70,000 884,979 Independence—Bank of Independence 40,000 8,000 566,821 Lexington— Guaranty Bank & Trust Co 150,000 50,000 1, 899,938 Security Trust Co 500,000 150,000 2,288,756 Richmond—State Bank & Trust Co 150,000 55,000 1, 096,263 1 Exclusive of insurance assets of $113,079,638. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 REPORT OF THE FEDERAL RESERVE BOARD. Capital. Total DISTRICT NO. 4—Continued. Adena—Adena Commercial & Savings Bank $60, 000 $387,310 Akron- Central Savings & Trust Co 500,000 $500,000 11,454,867 Depositors Savings & Trust Co 300, 000 300,000 5,957,479 Firestone Park Trust & Savings Bank 200,000 125,000 3,033,856 The Peoples Savings & Trust Co 200,000 160,000 6,045, 824 Alliance -City Savings Bank & Trust Co 250,000 125,000 3,571,560 Antwerp—Antwerp Exchange Bank Co 25,000 6, 500 327,944 Apple Creek—Apple Creek Banking Co 25,000 15,000 251,258 At water—At water Savings Bank Co 25,000 10, 000 305,091 Barberton—Peoples Savings & Banking Co 100,000 30,000 1,667,402 Bellaire—Dollar Savings Bank & Trust Co 150, 000 75, 000 1,680, 013 Bowling Green—State Bank of Bowling Green... 100, 000 18, 000 542, 973 Bridgeport—The Bridgeport Bank Co 75, 000 40, 000 813, 415 Buckeye City—Commercial & Savings Bank Co. 25,000 6,000 226,905 Canton—The Dime Savings Bank Co 500,000 200,000 5,418,381 Chagrin Falls—Chagrin Falls Banking Co 100, 000 75,000 1,445,495 Cincinnati- Brighton Bank & Trust Co 215,000 285, 000 9,862,677 Provident Savings Bank & Trust Co 1, 500, 000 1, 080, 000 22,915, 203 Union Savings Bank & Trust Co 1, 000, 000 2, 500, 000 24,695,695 Western Bank & Trust Co 1, 000, 000 750,000 14,030,930 Cleveland- Cleveland Trust Co 4,500,000 4,625,000 114,140,967 Commonwealth Bank & Trust Co 250,000 100,000 353,If0 • Guardian Savings & Trust Co 4,000,000 4,000,000 84,910,655 Midland Bank 2,000,000 400,000 9,178,052 Pearl Street Savings & Trust Co 600,000 500,000 16,164,057 The Reliance Trust Co 300,000 50,000 925,045 The Union Trust Co 22,250,000 11,125,000 235,698,385 United Banking & Savings Co 1,500,000 600,000 20,848,129 Columbiana—Union Banking Co 50,000 55,000 710,746 Columbus—Citizens Trust & Savings Bank 900,000 225,000 14,820,760 Conneaut—Conneaut Mutual Loan & Trust Co.. 125,000 125,000 1,947,285 Cuyahoga Falls— Citizens Bank 50,000 20,000 758,672 The Falls Banking & Trust Co 150,000 70,000 1,668,494 Dayton—Dayton Savings & Trust Co 600,000 600,000 16,396,242 Delphos—The Peoples Bank of Delphos 50,000 16,000 490,066 Delta—The Peoples Savings Bank Co 25,000 35,000 513,440 Eldorado—Farmers State Bank 35,000 6,500 381,600 Frazeysburg—Peoples Bank Co 25,000 47,000 587,972 Geneva—Geneva Savings Bank Co 100,000 95,000 1,329,811 Gibsonburg— Gibsonburg Banking Co. 50,000 29,000 851,379 Home BBaa n.k. i_n g„ Co 25,000 25,000 702,024 Hillsboro—Hillsboro Bank & Savings Co. 50,000 22,000 572,655 Hubbard—Hubbard Banking Co 50,000 50,000 827,949 Lodi—Lodi State Bank 40,000 60,000 785,556 McCutchenville—Farmers Bank 30,000 2,600 99,031 Mansfield—Farmers Savings & Trust Co 200,000 200,000 1,786,748 Massillon—Ohio Banking & Trust Co 150,000 60,000 1,811,524 Metamora—Farmers & Merchants Bank Co 25,000 7,000 360,890 Middlefield—Middlefield Banking Co 25,000 30,000 505,007 Middletown—American Trust ^ Savings Bank. 100,000 26,000 2,174,876 Milan—The Farmers & Citizens Banking Co 25,000 14,000 501,647 Minerva— The Minerva Banking Co 50,000 3,084 367,990 Minerva Savings & Trust Co 125,000 30,000 1,458,749 Minster—Minster State Bank. .1 25,000 25,000 453,790 Napoleon—Napoleon State Bank 50,000 50,000 762,946 Newark—The Newark Trust Co 200,000 150,000 3,061,984 New Philadelphia- Merchants State Bank 100,000 50,000 923,717 Ohio Savings & Trust Co 150,000 75,000 1,853,884 Orrville—Orrville Savings Bank 50,000 52,000 943,039 Pandora—Farmers Bank Co 25,000 9,000 176,844 Pemberville—Pemberville Savings Bank Co 25,000 10,000 380,927 . Peninsula—Peninsula Banking Co 25,000 7,000 244,616 Portsmouth—Security Bank 150,000 300,000 2,555,113 Rittman—Rittman Savings Bank 60,000 16,500 527,144 Rossford—Rossford Savings Bank 50,000 15,000 495,784 St. Clairsville—The Dollar Savings Bank Co... 50,000 32,000 700,445 St. Marys— The American State Bank 50,000 20,000 505,729 Home Banking Co 100,000 26,000 1,015,530 Shady side—Shady side Bank 35,000 6,000 424,649 Shelby—Citizens Bank 100,000 50,000 1,078,683 Shiloh—Shiloh Savings Bank Co 25,000 35,000 370,091 Spencer—Spencer State Bank 40,000 2,000 176,415 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 245 Total resources. DISTRICT NO. 4—Continued. OHIO—continued. Steubenville— Steubenville Bank & Trust Co $650,000 $294,000 $4,597,631 Union Savings Bank & Trust Co 350,000 350,000 4,371,897 Toledo— The Commerce Guardian Trust & Savings Bank. 1,400,000 600,000 21,523,162 The Commercial Savings Bank & Trust Co 200,000 275,000 7,799,974 Upper Sandusky— Citizens Savings Bank 50,000 50,000 701,301 Lewis Bank & Trust Co 150,000 75,000 975,156 Vermillion—Erie County Banking Co 50,000 15,000 606,359 Wakeman—Wakeman Bank Co * 25,000 15,000 297,871 Warren—Union Savings & Trust Co 600,000 600,000 5,255,554 Wellington—First Wellington Bank 85,000 100,000 1,225,709 West Lafayette—West Lafayette Bank Co 100,000 50,000 1,069,054 West Milton—Citizens State Bank Co 30,000 12,000 289,763 Wooster—Commercial Banking & Trust Co 150,000 41,000 1,059,402 Youngstown— City Trust & Savings Bank 300,000 300,000 5,912,222 Dollar Savings & Trust Co 1,500,000 1,000,000 17,503,978 PENNSYLVANIA. (See also District No. 3.) Ambndge—Ambridge Savings & Trust Co 125,000 50,000 2,290,730 Beaver—Beaver Trust Co 300,000 100,000 1,572,969 Beaver Falls—Federal Title & Trust Co 200,000 40,000 1,301,005 Bellevue—Bellevue Realty, Savings & Trust Co 125,000 50,000 1,368,574 -Butler—Guaranty Trust Co. of Butler 500,000 600,000 5,272,779 East Pittsburgh—East Pittsburgh Savings & Trust Co. 125,000 175,000 3,521,035 Erie—Security Savings & Trust Co 200,000 450,000 5,448,695 Greensburg—Merchants Trust Co 188,600 188,600 2,305,780 Meadville—Craw ford County Trust Co 200,000 50,000 2,515,868 New Castle—Lawrence Savings & Trust Co 300,000 300,000 4,121,099 Pittsburgh- Allegheny Trust Co 700,000 650,000 5,890,841 City Deposit Bank 200,000 800,000 12,837,306 Colonial Trust Co 600,000 2,600,000 25,902,065 Commonwealth Trust Co 500,000 1,000,000 12,912,380 Oakland Savings & Trust Co 200,000 200,000 4,789,706 Pittsburgh Trust Co 000,000 1,000,000 20,481,573 Potter Title & Trust Co 500,000 100,000 5,600,342 Union Trust Co 500,000 37,500,000 137,317,147 Washington—Real Estate Trust Co 200,000 400,000 2,764,831 Woodlawn—Woodlawn Trust Co 125,000 125,000 1,579,280 WEST VIRGINIA. (See also District No. 5.) Moundsville—Marshall County Bank 150,000 50,000 1,502,918 Sistersville—First-Tyler Bank & Trust Co 200,000 100,000 2,558,052 Wheeling- Security Trust Co 300,000 200,000 3,488,251 Wheeling Bank & Trust Co 300,000 400,000 6,312,149 DISTRICT NO. 5. DISTKICT OF COLUMBIA. Washington—Continental Trust Co 1,000,000 100,000 4,114,856 MARYLAND. Arlington—Liberty Bank of Baltimore County 25,000 12,500 705,658 Baltimore— Baltimore Commercial Bank 750,000 150,000 7,191,753 Baltimore Trust Co 1,000,000 2,000,000 17,175,754 Maryland Trust Co 1,000,000 7,730,783 Hamilton—Hamilton Bank 30,000 i6"656' 739,681 Overlea—Overlea Bank 50,000 20,000 1,105,458 Salisbury—Farmers' & Merchants Bank 100,000 100,000 939,533 NORTH CAROLINA. Asheville—Battery Park Bank 100,000 100,000 3,076,229 Belhaven—Farmers Bank 25,000 7,500 165,300 85227—22 17 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

246 REPORT OF THE FEDERAL RESERVE BOARD. i Capital. Total resources. DISTRICT NO. 5—Continued. NORTH CAROLINA—continued. Charlotte- American Trust Co.„ $1,200,000 $9,194,349 Independence Trust Co.. 000,000 5,204,678 Edenton—Bank of Edenton 66,900 697,446 Elizabeth City—Carolina Banking & Trust Co. 215,223 377,296 Forest City—Farmers Bank & Trust Co 100,000 983,573 Henderson—Carolina Bank & Trust Co 100,000 422,441 Morehead City—Bank of Morehead City , 50,000 324,457 New Bern- New Bern Banking & Trust Co 100,000 25,000 1,055,736 The Peoples Bank 100,000 50,000 1,270,159 Tarboro—Farmers Banking & Trust Co 100,000 25,000 902,052 Washington—Bank of Washington 150,000 52,000 1,151,382 Wilson—The Planters Bank 100,000 25,000 798,398 Winston-Salem— Farmers Bank & Trust Co 250,000 5,000 1,195,960 Wachovia Bank & Trust Co ,333,100 750,000 23,461,467 SOUTH CAROLINA. Charleston—Carolina Savings Bank 200 000 200,000 3,168,493 Cheraw— Bank of Cheraw 110,000 50,000 722,265 Merchants & Farmers Bank 100,000 20,000 435,637 Chester—Commercial Bank , 100,000 90,000 1,077,943 Darlington—Bank of Darlington 100,000 100,000 1,243,573 Florence— Commercial & Savings Bank , 250,000 100,000 1,266,606 Palmetto Bank & Trust Co 100,000 20,000 1,055,193 Georgetown- Bank of Georgetown , 100,000 100,000 987,779 Peoples Bank of Georgetown , 100,000 35,000 527,339 Hartsville—Bank of Hartsville 75,000 42,500 789,987 Rock Hill—Citizens Bank & Trust Co 100,000 15,000 834,199 St. George—The Farmers Bank 25,000 9,000 249,967 St. Matthews—The Home Bank 50,000 30,000 354,712 Sumter—Peoples Bank 100,000 30,000 510,726 Union—Nicholson Bank & Trust Co , 200,000 200,000 1,580,108 Walterboro—Fanners & Merchants Bank. 100,000 30,000 624,264 Westminster—Westminster Bank 100,000 25,000 655,947 Woodruff—Bank of Woodruff 77,800 29,050 442,097 VIRGINIA. Blackst one—Citizens Bank & Trust Co 100,000 60,000 679,891 Cambria—Cambria Bank (Inc.) 30,000 10,000 240,113 Chase City—Peoples Bank & Trust Co 100,000 18,000 491,165 Christiansburg—Bank of Christiansburg 34,000 100,000 1,210,408 Emporia— Greensville Bank 100,000 135,000 784,730 Merchants & Farmers Bank 80,000 85,000 632,096 Galax—The Peoples State Bank (Inc.) 25,000 21,000 324,339 Kenbridge— Bank of Lunenburg (Inc.) 50,000 70,000 613,672 State Bank of Kenbridge 45,800 11,450 I 176,129 Norfolk—Citizens Bank of Norfolk ,000,000 500,000 7,355,768 Petersburg—Petersburg Savings & Trust Co [,000,000 141,700 I 4,777,098 Richmond— ! Bank of Commerce & Trusts 500,000 500,000 4,919,259 Savings Bank of Richmond 200,000 300,000 2,458,094 Union Bank of Richmond 500,000 750,000 3,918,093 ural Retreat—Peoples Bank of Rural Retreat 35,000 3,500 182,559 WEST VIRGINIA. (See also District No. 4.) Berwind—The Berwind Bank 50,000 75,000 1,169,760 Charleston—-Kanawha Valley Bank 400,000 1,300,000 12,661,928 Franklin—Franklin Bank 40,000 14,000 343,288 Gra'ton—Grafton Banking & Trust Co , 100,000 50,000 I 1,465,008 Hurricane—Putnam County Bank 50,000 40,000 ! 439,483 Martinsburg—Shenandoah Valley Bank & Trust Co., 100,000 25,000 395,626 Petersburg—Potomac Valley Bank 50,000 1,000 i 177,941 St. Marys —The Pleasants County Bank 50,000 16,000 I 480,899 Salem—The Merchants & Producers Bank 50,000 35,000 j 741,431 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 247 Total Capital. Surplus. resource1:. DISTRICT NO. 6. ALABAMA. Birmingham- American Trust & Savings Bank $500,000 $250,000 $10,355,462 Birmingham Trust & Savings Bank 500, 000 700,000 13,609,478 Carrollton—Pickens County State Bank 60,000 2,000 259,588 Clayton—Bank of Commerce 50,000 9,000 162,415 Cullman—Alabama Bank & Trust Co ,50,000 10,000 173,541 Eufaula—Bank of Eufaula 100. 000 10,000 351,540 Guin—Marion County Banking Co 25,000 35,000 240,294 Hartselle—Farmers & Merchants Bank 50,000 2,500 245,765 Huntsville—Farmers State Bank 100, 000 35,000 522,257 Jasper—Central Bank & Trust Co 50,000 10,000 652,471 Marion—Marion Central Bank 50,000 100,000 545,604 Mobile- Merchants Bank 200,000 400,000 6,447,996 Peoples Bank 200,000 300,000 5; 592,388 Monroeville—The Monroe County Bank 60,000 30,000 475,677 Montgomery—Alabama Bank & Trust Co 300;000 32,000 1,211,929 Montgomery—Merchants Bank of Montgomery.. 100,000 15,000 1,074,076 Orrville—Orrville Bank & Trust Co 25,000 30,000 149,582 Pittsview—Bank of Pittsview 25,000 4,789 64,860 Roanoke— Merchants & Farmers Bank 125, 000 75,000 616,065 Roanoke Banking Co 200!000 200,000 923,950- Talladega—Bank & Trust Co ioo:000 18,000 481,584 Union Springs—American Bank 50,,000 10,000 207,, 3M FLORIDA. De*Land—Volusia County Bank& Trust Co.. 100,000 125,000 1,929,728 Jacksonville—American Trust Co 200,000 31,000 866,795 Lakeland—Central State Bank 100,000 713,179 Lake Wales—Citizens Bank of Lake Wales... 50,000 5,000 157,665 Leesburg—Leesburg State Bank 30,000 15,000 643,815 Marianna—Citizens State Bank 30,000 15,000 297,706 Miami—The Southern Bank & Trust Co 100,000 5,000 1,519,540 Ocoee—Bank of Ocoee 25,000 3,000 119,609 Orlando—Bank of Orange & Trust Co 200,000 51,600 988,094 Tallahassee—The Exchange Bank 50,000 15,000 363, 593 Tampa—Citizens American Bank & Trust Co. ., 000,000 300,000 9, 735,484 Winter Park—Union State Bank 50,000 11,000 333,815 GEORGIA. Athens— American State Bank 100,000 20,000 557,430 Commercial Bank of Athens 100, 000 20,000 679,772 Atlanta- Atlanta Trust Co ,139,600 175,000 3,050, 531 Central Bank & Trust Corporation ., 000,000 500,000 11,294, 242 Georgia Savings Bank & Trust Co 500,000 150,000 2,551, 576 Trust Co. of Georgia , 000,000 1, 500,000 5,696,556 Bainbridge—Citizens Bank & Trust Co 100,000 20,000 666,593 Barnesville—The Bamesville Bank 50,000 10,000 156,996 Bartow—The Bartow Bank 25,000 10,000 196,646 Boston—Bank of Boston 25,000 5,000 155, 536 Bowersville—Bank of Bowersville 25,000 5,000 79,745 Bowman—Bank of Bowman 35,000 10,000 231,959 Brunswick—Brunswick Bank & Trust Co. 230,000 100,000 1, 743,587 Calhoun—Peoples Bank of Calhoun 73,600 11,000 501,441 Camilla—Bank of Camilla 50,000 50,000 401,625 Canon— The Canon Bank 25,000 12,500 69,116 The Farmers Bank 25,000 1,000 60,108 Carrollton—Peoples Bank 60,000 30,000 316,551 Cartersville—Bank of Cartersville 100, 000 50,000 503,005 Cave Springs—Bank of Cave Springs 25,000 25,000 180,193 Chipley—Farmers & Merchants Bank 50,000 10,000 332, 511 Clarkesville—Habersham Bank 25,000 10,000 270,175 Claxton—Citizens Bank of Claxton 30,000 3,000 114,121 Commerce- Commerce Bank and Trust Co 100,000 165,113 Northeastern Banking Co 100,000 60,000 586,466 Cordele—The Exchange Bank 100,000 100,000 803,382 Dawson—Bank of Dawson 100,000 37,000 301, 710 Donaldsonville—Bank of Donaldsonville... 100,000 50,000 556,175 Douglasville—Douglasville Banking Co 75,000 51,500 498,724 Dublin—Southern Exchange Bank 100,000 1,000 682,064 Eastman— Bank of Eastman 60,000 3,000 226,709 Citizens Banking Co 100,000 20,000 458,829 Forsyth—Monroe County Bank 25,000 30,000 223,405 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

248 REPORT OF THE FEDERAL RESERVE BOARD. Capital. Surplus. res T o o u t r a c l es. DISTRICT NO. 6—Continued. GEORGIA—continued. Girard—Fanners & Merchants Bank $25,000 $47,533 Graymont—Bank of Graymont 25,000 $5,000 135,454 Grayson—Bank of Grayson 40,000 10,000 100,138 Greenville— The Greenville Banking Co 65,000 100,000 540,825 Peoples Bank 30,000 27,606 159,775 Hart well- Farmers & Merchants Bank 100,000 15,000 372,316 Hartwell Bank 60,000 30,000 377, 217 Jackson—Jackson Banking Co 100,000 20,000 315.708 Jefferson—Citizens Bank & Trust Co 93,140 2,100 192,009 La Grange—La Grange Banking & Trust Co.. 250,000 650,000 2,997,655 Lavonia—The Bank of Lavonia 40,000 10,000 197.709 Lawrenceville—The Brand Banking Co 50,000 50,000 483, 412 Lexington—Oglethorpe County Bank 25,000 25,000 254,628 Louisville—Bank of Louisville 25,000 55,000 408,462 Madison—Morgan County Bank 50,000 133,337 McDonough— The Bank of Henry County 50,000 30,000 218,306 The Farmers and Merchants Bank 100,000 12, 350 219, 538 Metter— Bank of Candler County 25,000 75,308 Citizens Bank 30,000 20,000 177,905 Millen—Bank of Milien 50,000 50,000 504,401 Monroe— Bank of Monroe 300,000 75,000 715,001 The Farmers Bank 150,000 30,000 397,990 Plains—Plains Bank 50,000 35,000 356,182 Portal—The Bank of Portal 25,000 1,250 89, 447 Rhine—Rhine Banking Co 25,000 2, 500 69,043 Royston—The Royston Bank 60,000 30,000 350, 794 Sardis—Peoples Bank 25,000 6,000 83,866 Sasser—Bank of Sasser 25,000 25,000 153,537 Savannah- American Bank & Trust Co 200,000 12,500 1,036,023 Citizens & Southern Bank !, 000,000 2,500,000 41,776,835 Citizens Trust Co 200,000 50,000 1,216,710 Savannah Bank & Trust Co 700, 000 700, 000 7, 111, 035 Social Circle—Walton County Bank 125,000 55,000 540,539 Soperton—The Bank of Soperton 25,000 25,000 302,291 Statesboro—Bank of Statesboro 100,000 75,000 743,874 Swainsboro—Central Bank 25,000 119,854 Toccoa—The Bank of Toccoa 50,000 10, 000 207, 679 Valdosta—Exchange Bank of Valdosta 100,000 16,550 268, 628 Wadley—Bank of Wadley 25,000 15,000 116,686 West Point—Citizens Bank 100,000 18,500 341, 881 Winder— Farmers Bank 50,000 8,500 182,282 North Georgia Trust & Banking Co 200,000 24,000 847,044 Winterville—Pittard Banking Co 25, 000 11,000 101,558 Zebulon—The Bank of Zebulon 25,000 20,000 168.532 LOUISIANA. (See also District No. 11.) Baton Rouge—Union Bank & Trust Co 150,000 50,000 2,271,785 Gretna—Jefferson Trust & Savings Bank 50,000 10,000 669,056 Iota—Bank of Iota 25,000 10,000 252,029 New Orleans- Algiers Trust & Savings Bank 200,000 50,000 608,098 American Bank & Trust Co 200,000 27,000 1,275,762 Canal-Commercial Trust & Savings Bank , 000,000 2,000,000 65,600,290 Citizens Bank & Trust Co , 000,000 250,000 9,411,274 Hiberaia Bank & Trust Co , 000, 000 2, 500,000 46,565,258 Interstate Trust & Banking Co 750,000 700,000 13,714,376 Liberty Bank & Trust Co 500,000 115,000 2,934,229 Marine Bank & Trust Co , 500,000 800,000 20,564,326 New Orleans Bank & Trust Co 400,000 100,000 2,338,215 New Roads—Pointe Coupee Trust & Savings Bank 60,000 6,600 284,121 Opelousas—Parish Bank & Trust Co 50,000 10,000 177,924 TENNESSEE. (See also District No. 8.) Bellbuckle—Peoples Bank & Trust Co 30,000 5,000 146,667 Chattanooga—Chattanooga Savings Bank 750,000 250,000 5,600,888 Nashville—Bank of Tennessee 200,000 50,000 1,895,226 Wartrace—Wartrace Bank & Trust Co 25,000 1,000 75,800 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 249 Total Capital. resources. DISTRICT NO. 7. (See also District N'o. 8.) Argenta—The Gerber State Bank $25, 000 $2, 750 $195, 284 Auburn—Auburn State Bank 25, 000 25, 000 513, 581 Barrington—First State Bank 50, 000 15, 000 441, 727 Blandinsville—Huston Banking Co 60, 000 40, 000 1, 239, 662 Chicago- Trie Adams State Bank 200, 000 21, 000 1, 333, 859 Austin State Bank 200, 000 100, 000 5, 259, 484 Capital State Savings Bank 200, 000 35, 000 2,795, 842 Central Trust Co. of Illinois 6,000, 000 1, 000, 000 78,176, 765 Chicago Trust Co 1, 000, 000 400, 000 14, 885, 743 Depositors State Bank 300, 000 150, 000 4, 833, 034 Drexel State Bank of Chicago 350, 000 150, 000 7, 483, 506 First Trust & Savings Bank 6,250, 000 6, 250, 000 112, 478, 363 Foreman Bros. Banking Co 1, 500, 000 1, 500, 000 39,134, 511 Harris Trust & Savings Bank 2, 000, 000 3, 000, 000 41, 901, 415 Home Bank & Trust Co 800, 000 200, 000 9, 354, 502 Hyde Park State Bank 300, 000 200, 000 4,250, 301 Illinois Trust & Savings Bank 5, 000, 000 10, 000, 000 145,684, 338 Independence State Bank 200,000 40, 000 3, 721, 713 Kaspar State Bank 500, 000 500, 000 12, 771,165 Madison & Kedzie State Bank 750, 000 250, 000 6,143,628 Mechanics & Traders State Bank 200, 000 50, 000 1, 900, 717 Mercantile Trust & Savings Bank 400, 000 125, 000 6, 210, 914 Merchants Loan & Trust Co 5, 000, 000 10, 000, 000 113, 558,578 Noel State Bank 1,000,000 100, 000 7, 384, 737 Northern Trust Co 2, 000, 000 3, 000, 000 50, 317, 484 Northwestern Trust & Savings Bank 1, 000,000 250, 000 19, 421, 883 Reliance State Bank 300, 000 60, 000 5, 863, 541 Second Security Bank 250, 000 150, 000 4, 701, 556 Security Bank of Chicago 500, 000 300, 000 7, 213, 647 South Side Trust & Savings Bank 300,000 100, 000 7, 098,905 S S t t a a n te d a B r a d n T k r o u f s t C & hi c S a a g v o ings Bank 2 1 , , 5 0 0 0 0 0 , , 0 0 0 0 0 0 3, 5 5 0 0 0 0 , , 0 0 0 0 0 0 4 1 8 0 , , 6 2 3 9 5 5 , r 2 9 6 1 0 6 Union Trust Co 2, 000, 000 2, 700, 000 48, 538,150 United State Bank of Chicago 200, 000 50, 000 1, 846, 352 Woodiawn Trust & Savings Bank 400, 000 100, 000 6, 212, 334 Cicero- Morton Park State Bank 100, 000 30, 000 1,437, 578 Western State Bank 200, 000 40, 000 2,421,138 Cowden—State Bank of Cowden 25, 000 10, 000 260, 034 Des Plaines—Des Plaines State Bank 50, 000 40, 000 1,120,947 Divernon—First State Bank 50, 000 5,500 642, 340 Eureka—Farmers State Bank 100, 000 10, 000 699.889 Evanston— Evanston Trust & Savings Bank 100, 000 20, 000 1, 474, 800 State Bank & Trust Co 300, 000 300, 000 6, 505, 995 Fulton—Whiteside County State Bank 50, 000 7,500 521, 560 Geneva—State Bank of Geneva 50, 000 25, 000 860,162 Hinckley—Hinckley State Bank 50, 000 25, 000 437, 893 Hinsdale—Hinsdale State Bank 100, 000 25, 000 797, 314 Joliet— Commercial Trust & Savings Bank 100, 000 10, 000 1,139, 911 Joliet Trust & Savings Bank 100, 000 35, 000 1, 272, 053 Kewanee—Union State Savings Bank & Trust Co 150, 000 25, 000 1, 352, 538 La Grange—La Grange State Bank 100, 000 50, 000 1, 714, 794 Magnolia—First State Bank 25, 000 6,000 197, 255 Marshall—Marshall State Bank 60, 000 7,000 327,197 Martinsville—Martinsville State Bank 50, 000 20, 000 413, 035 Matteson—First State Bank of Matteson 25, 000 10, 000 155, 532 Mattoon—Central Illinois Trust & Savings Bank 100, 000 75, 000 948, 622 Moline— Moline Trust & Savings Bank 300, 000 150, 000 4, 303, 822 Peoples Savings Bank & Trust Co 250, 000 250, 000 5, 907, 212 State Savings Bank & Trust Co 300, 000 165, 000 4,334,155 Mount Carroll- Carroll County State Bank 50, 000 50, 000 1,169, 548 First State Savings Bank , 50, 000 50, 000 992, 66& Oak Park- Oak Park Trust & Savings Bank 300,000 125,000 3,441,775 Suburban Trust & Savings Bank 100,000 15,000 1,318,355 Oswego—Oswego State Bank 50,000 10,000 307,200 Polo—Polo State Bank 75,000 11,000 432,292 Rock Island—First Trust & Savings Bank 100,000 25,000 875,857 St. Charles—Stewart State Bank 100,000 50,000 1,000,955 Seneca- Farmers' Trust & Savings Bank 25,000 5,000 146,263 State Bank of Seneca 50,000 25,000 413,509 Shannon—State Bank of Shannon 50,000 266,961 Springfield—Ridgely-Farmers State Bank 600,000 150,000 6,566,937 "Wenona—First State Bank of Wenona , 50,000 50,000 749,802 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

250 REPORT OF THE FEDERAL, RESERVE BOARD. Total resources. DISTRICT NO. 7—Continued. (See also District No. 8.) Angola—Steuben County State Bank S317,705 Bargersville—Farmers State Bank 212,585 Colfax—Farmers State Bank 191,788 Connersville—Fayette Bank & Trust Co 2,526,383 Cromwell—Sparta State Bank 194,617 Elkhart—St. Joseph Valley Bank 4,713,201 Hillsboro—Hillsboro State Bank 180,307 Jamestown—Citizens State Bank 454,600 Kentland— Discount & Deposit State Bank 70,000 777,199 Kent State Bank 50,000 385,109 Lafontaine—Farmers State Bank 35,000 134,625 Marion—Grant Trust & Savings Bank 150,000 1.942,821 North Liberty—North Liberty State Bank 50,000 '384,581 Richmond—Dickinson Trust Co 200,000 3,543,126 Rochester—United States Bank & Trust Co... 72,000 938, 961 South Bend- American Trust Co 200,000 128,000 4,526,004 St. Joseph Loan & Trust Co 800,000 200,000 4,610,372 South Whitley—Gandy State Bank 25,000 18,000 304,777 Terre Haute—The Terre Haute Trust Co 500,000 500,000 8,138,542 Tipton—Farmers Loan & Trust Co , 50.000 50,000 627,718 Algona—County Savings Bank 100,000 60,000 1,897,522 Alta Vista—Alta Vista Savings Bank 30,000 17,000 571,555 Ames—Story County Trust & Savings Bank 50,000 * 16,000 787,641 Armstrong—State Bank of Armstrong 25,000 5,000 191,169 Audubon—Iowa Savings Bank 50,000 1,250 341,630 Avoca—A voca State Bank 50,000 20,000 784, 855 Barnes City—Farmers Savings Bank 50,000 15,000 626,109 Battle Creek—Battle Creek Savings Bank 100,000 5,000 748,747 Bellevue—Bellevue State Bank 60,000 10,000 1,291,269 Bennett—Bennett Savings Bank 50.000 10,000 408) 854 Blairsburg—State Bank of Blairsburg 25,000 10,500 230.513 Brighton—Brighton State Bank 50,000 25,000 468', 710 Britt—Commercial State Bank 60,000 70,000 1,127,747 Cedar Falls—Security Trust & Savings Bank 50,000 10,000 435,625 Cedar Rapids—Iowa State Savings Bank 200,000 65,000 3,205,601 Chariton—State Savings Bank 50,000 50,000 877,062 Charter Oa]-—Farmers State Bank 40,000 10,000 417,138 Cherokee—Cherokee State Bank 75,000 75,000 1,195,475 Clearfield—Taylor County State Bank 25,000 4,000 120,782 Clinton—Peoples Trust & Savings Bank 300,000 300,000 5,455,443 Corwith—Peoples State Bank , 40,000 5,000 152,298 Davenport—American Commerical & Savings Bank. 700,000 700,000 IS, 473,994 Decor ah— Citizens Savings Bank 50.000 50,000 655,913 Winneshiek County State Bank 150,000 75,000 2,236,790 Des Moines— Bankers Trust Co 1,000,000 200,000 : 4,774,795 Central State Bank 250,000 250,000: 5,733,491 Iowa Loan <fc Trust Co 500,000 250,000 i 8,110,693 Dexter—Iowa State Bank 25,000 15,000 j 199,426 Earlv— Citizens State Bank 30,000 37,000: 314,322 State Bank of Early 40,000 20,000 322,391 Elberon—Farmers State Bank 50,000 25,000 ! 702,407 Eldora—Citizens Savings Bank 50,000 25,000 ! 239,133 Elkader—Elkader State Bank 50,000 25,000 | 265,5 6 Ellsworth- Farmers State Bank 25,000 7,000 ' 138,213 State Bank of Ellsworth 35,000 15,000 i 294,851 Fairbank—Fairbank State Bank 26,000 24,000 490,101 Fairf'eld—Iowa State Savings Bank 200,000 75,000 j 1,782,674 Farragut—Commercial Savings Bank 40,000 10,000 ! 236,175 Fort Madison- American State Bank 100,000 15,000 ! 1,428,114 Fort Madison Savings Bank 100,000 50,000 | 1, 901,334 Fostoria—Citizens Savings Bank 25,000 173,097 Fremont—State Bank of Fremont 40,000 60,000 408,467 Garwm—Garwin State Bank 50'. 000 25,000 454,922 Gilbert—Gilbert Savings Bank 50,000 5, COO 283,127 Gil man—Citizens Savings Bank 50,000 10,000 433,755 Grand River—Farmers State Bank 25,000 15,000 270,390 Grant—Farmers Savings Bank 25,000 20,000 163,367 Greenfield—Greenfield Savings Bank 30,000 10,000 285,157 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 251 Surplus. res T o o u t r a c l es. DISTRICT NO. 7—Continued. IOWA—continued. Hudson—Hudson Savings Bank $50,000 $20 000 1415,091 Humboldt—Peoples State Bank 100,000 35,000 824,407 Jefferson—Jefferson Savings Bank 50,000 13,000 506.113 Knoxville—Guaranty State Bank 50,000 15,000 524', 261 Lake View—Lake View State Bank 25,000 25,000 274, 599 Lakota—Farmers & Drovers State Bank 30,000 10, 000 241,506 Leon—Farmers & Traders State Bank 100,000 12,000 634,247 Lockndge—Lockridge Savings Bank 25,000 10,000 375,915 Logan—State Savings Bank 50,000 11,000 367.896 Lowden—Lowden Savings Bank 25,000 20,000 315,682 Lytton—Farmers Savings Bank 30,000 17,500 382,504 Magnolia—Magnolia Savings Bank 25,000 10', 000 225,179 Malcom—Malcom Savings Bank 50,000 30,000 344.658 M M a a p rs le h t a o l n lt — ow M n— apl M et a o r n s h T al r l u to st w & n S S a ta v t i e n g B s a B nk ank 1 7 0 5 0 ; , 0 0 0 0 0 0 5 1 0 3 , , 0 0 0 0 0 0 2, 6 4 5 6 2 2 ; , 4 3 9 8 1 5 Mason City—City-Commercial Savings Bank 400,000 61,600 3,097,321 Mechamcsville—Mechanicsville Trust & Savings Bank.. 50,000 50,000 680,601 Mediapolis—Commercial State Bank 100,000 40,000 621,540 Missouri Valley—State Savings Bank 50,000 10,000 490,440 Mondamin—Mondamin Savings Bank 35,000 15,000 347,375 Monticello— Lovell State Bank 200,000 100,000 1,197,337 Monticello State Bank 200,000 200,000 2,365,195 Moorhead—Moorhead State Bank 30,000 30,000 358,260 Moville—Moville State Bank...... 35,000 23,000 296,342 New Hampton—State Bank 50,000 45,000 789,1S7 Newton- Citizens State Bank 60,000 25,000 568,763 Jasper County Savings Bank 100,000 50,000 1,054,886 Ogden—City State Bank 50,000 20,000 553,875 Osage—Home Trust & Savings Bank : 50,000 25,000 575,1-53 Osceola—Iowa State Bank 50,000 8,500 332,240 Ottumwa—Ottumwa Savings Bank 100,000 30,000 1,420,358 Perry—People's Trust & Savings Bank 50,000 4,000 531,950 Remsen—Farmers Savings Bank 50,000 25,000 389,618 Riceville—Riceville State Bank 25,000 15,000 221,428 Roland—Farmers Savings Bank 35,000 35,000 373,759 Royal—Home State Bank 25,000 2,000 181,040 Sac City- Farmers Savings Bank 100,000 30,000 684,406 Sac County State Bank 75,000 100,000 1,114,067 Schaller—Schaller Savings Bank 25,000 25,000 I 294,370 Shenandoah—Security Trust & Savings Bank 60,000 6,000 335,471 Sibley—Sibley State Bank 50,000 15,000 520,107 Sioux Center—Sioux Center State Bank 25,000 35,000 254,186 Solon—Ulch Brothers State Bank 50,000 15,000 854,183 Storm Lake—Security Trust & Savings Bank 75,000 4,435 369,945 Strawberry Point—Strawberry Point State Bank 50,000 10,000 806,192 Sutherland—First Savings Bank 50,000 10,000 328,221 Terril—Terril Savings Bank 25,000 2,000 197,968 Thompson—State Bank of Thompson 30,000 8,000 241,694 Tipton—Farmers & Merchants Savings Bank 50,000 20,000 419,584 Ute— Farmers Savings Bank 25,000 2,500 115,644 State Savings Bank 50,000 15,000 256,033 Vail—Farmers State Bank 50,000 12,500 266,765 Van Wert—Van Wert State Bank 25,000 25,000 260,039 Victor—Victor Savings Bank 50,000 30,000 479,303 Wapello—Wapello State Savings Bank 30,000 10,000 478,721 Waterloo—Waterloo Bank & Trust Co 200,000 50,000 2,170,232 Webster City—Hamilton County State Bank 100,000 30,000 1,123,280 Winterset—Madison County State Bank 125,000 125,000 1,169,066 MICHIGAN. (See also District No. 9.) Adrian- Adrian State Sayings Bank 120,000 120,00/ 2,106,348 Commercial Savings Bank 110,000 30,000 1,552,110 Lenawee County Savings Bank 150,000 50,000 2,081,706 Albion- Albion State Bank 50,000 40,000 993,668 Commercial & Savings Bank 75,000 40,000 933,615 A lpena—Alpena County Savings Bank 100,000 200,000 4,009,319 Ann Arbor- Farmers & Mechanics Bank 200,000 75,000 3,015,589 State Savings Bank 300,000 250,000 3,721,809 Armada— Armada State Bank 25,000 25,000 448,871 Farmers State Bank 25,000 11,000 342,663 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

252 REPORT OF THE FEDERAL RESERVE BOARD. Total resources. DISTRICT NO. 7—Continued. MICHIGAN—continued. Bay City- Bay City Bank $250,000 $250,000 $4,728,809 Farmers State Savings Bank , 100.000 50,000 1,887,332 Peoples Commercial & Savings Bank 400,000 500,000 10,279,364 Bellevue—Farmers State Bank 25,000 5,000 174,608 Benton Harbor—Benton Harbor State Bank 100,000 50,000 1,738,826 Big Rapids- Big Rapids Savings Bank 50,000 12,500 787,440 Citizens State Bank 50,000 25,000 1,545,689 Birmingham—First State Savings Bank 100,000 22,000 1,207,586 Blanchard, Blanehard State Bank 25,000 5,000 208,387 Blissneld—The Blissfield State Bank 50,000 15,000 783,957 Britton—Peoples State Savings Bank 25,000 5,000 305,05fr Caledonia—State Bank of Caledonia 50,000 10,000 502,429 Caro—State Savings Bank 112,500 87,500 1,241,369 Carson/City—Farmers & Merchants State Bank .., 25,000 5,000 218,482 Carsonville—The First State Bank 25,000 5,000 459,796 Cass City—The Pinney State Bank 50,000 2,500 574,315 Cassopolis—Cass County State Bank 40,000 5,200 421,413 Charlotte—Eaton County Savings Bank 100,000 20,000 1,276,244 Chelsea- Farmers & Merchants Bank 25,000 25,000 715,372 Kempf Commercial & Savings Bank 40,000 40,000 727,524 Coloma—State Bank of Coloma 25,000 20,000 639,675 Constantine—Commercial State Bank 25,000 8,000 330,344 Coopersville—Peoples Savings Bank 25,000 5,000 462,162 Croswell— First State Savings Bank 30,000 6,000 603,051 State Bank of Croswell 60,000 12,000 1,177,280 Davison—Davison State Bank 50,000 10,000 523,383 Dearborn—Dearborn State Bank 100,000 185,000 2,394,700' Detroit- American State Bank 1,000,000 400,000 17,213,900 Bank of Detroit 1,000,000 350,000 22,438,764 Central Savings Bank 1,000,000 200,000 16,243,749 Detroit Savings Bank 1,500,000 2,000,000 25,934,857 Dime Savings Bank 1,500,000 2,400,000 41,697,215 First State Bank 1,000,000 500,000 13,268,505 Peninsular State Bank 2,500,000 1,500,000 32,672,037 Peoples State Bank 5,000,000 8,500,000 108,913,562 United Savings Bank 500,000 250,000 7,972,334 Wayne County & Home Savings Bank 4,000,000 5,000,000 77,816,411 Eaton Rapids—Michigan State Bank 75,000 15,000 620,709 Edmore—Edmore State Bank 30,000 9,000 450,153 Elk Rapids—Elk Rapids State Bank 35,000 15,000 377,870 Evart—First State Savings Bank 50,000 10,000 544,833 Farmington—Farmington State Savings Bank 40,000 30,000 888,621 Fennville—Old State Bank 50,000 10,000 428,843 Fenton— Commercial State Savings Bank 50,000 31,000 572,530 Fenton State Savings Bank 25,000 20,000 754,109 Flint- Citizens Commercial & Savings Bank 450,000 300,000 5,089,819 Genesee County Savings Bank 500,000 500,000 8,679,630 Industrial Savings Bank 1,000,000 300,000 9,855,915 Union Trust & Savings Bank 400,000 230,000 5,517,954 Flushing—Peoples State Bank , 25,000 15,000 334,337 Fountain—Bank of Fountain , 25,000 5,000 189,791 Frankenmuth— Frankenmuth State Bank 50,000 40,000 959,943 Fremont- Fremont State Bank 25,000 25,000 708,639 Old State Bank 50,000 25,000 1,194,128 Grand Haven- Grand Haven State Bank 100,000 75,000 2,110,775 Peoples Savings Bank 50,000 25,000 1,002,808 Grand Rapids- City Trust & Sayings Bank 200,000 2,744,630 Commercial Savings Bank 300,000 60,000 3,265,912' Grand Rapids Savings Bank 400,000 350,000 13,511,904 Kent State Bank 500,000 1,000,000 13,051,897 Peoples Savings Bank , 200,000 100,000 2,597,216 Greenville—Commercial State Savings Bank 50,000 30,000 1,016,469 Hart—Oceana County Savings Bank , 40,000 13,000 550,137 Highland Park- American State Bank 200,000 50,000 2.231.762" Highland Park State Bank 1,000,000 800,000 17,919,180 Hillsdale—Hillsdale Savings Bank 100,000 25,000 1,140,029 Holland- First State Bank 100,000 30,000 2,620,667 Holland City State Bank 100,000 50,000 2,063,980* Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 253 Total Surplus. resources. DISTRICT NO. 7—Continued. MICHIGAN—continued. Holly—First State & Savings Bank $100,000 •«50,000 11,467,097 Hopkins—Hopkins State Savings Bank 25,000 5,000 482,887 Howell—First State & Savings Bank 75,000 18,000 602,486 Hudson—Thompson Savings Bank 100,000 50,000 1,444,485 Imlay City— Lapeer County Bank 50,000 10,000 1,042,802 Peoples State Bank 50,000 10,000 857,771 Ionia—State Savings Bank 100,000 100,000 1,419,224 Jackson— Central State Bank 100,000 26,000 1,494,454 Jackson State Savings Bank 300,000 125,000 2,329,769 Jonesville—Grosvenor Savings Bank 50.000 25,000 582,249 Lake Odessa—Lake Odessa State Savings Bank 25,000 12,500 480,956 Lakeview— Commercial State Savings Bank 25,000 6,500 312,226 Farmers & Merchants State Bank 25,000 10,000 280,210 Lansing—American State Savings Bank 500,000 250,000 7,340,264 Lapeer—Lapeer Savings Bank 75,000 15,000 766,171 Lenox and Richmond—The Macomb County Savings Bank. 50,000 10,000 1,190,815 Lowell—City State Bank 25,000 10,000 531,137 Ludington—Ludington State Bank 100,000 25,000 1,919,341 Manchester— Peoples Bank 25,000 15,000 472,990 Union Savings Bank 25,000 50,000 738,816 Manistee—Manistee County Savings Bank 100,000 100,000 2,411,275 Marcellus—G. W. Jones Exchange Bank 40,000 29,000 787,190 Marshall—Commercial Savings Bank 100,000 20,000 1,252,568 Marysville—Marysville Savings Bank 100,000 50,000 460,765 Mason— Farmers Bank 50,000 10,000 659,181 First State & Savings Bank 25,000 15,000 728,353 Midland—Chemical State Savings Bank 50,000 15,000 716,640 Milan—Milan State Savings Bank 25,000 16,000 332,750 Milford—First State Bank. 25,000 12, 500 633,156 Monroe—Dansard State Bank 200,000 30,000 2,390,789 Montague—Fanners State Bank 25,000 5,000 336,292 Morenci—Wakefield State Bank 50,000 30,000 852,832 Mount Clements—Ullrich Savings Bank 100,000 100,000 1, 815,125 Mount Pleasant— Exchange Savings Bank 50,000 32, 500 1,117,068 Isabella County State Bank 60,000 20,000 1,238,10a Nashville- Farmers & Merchants Bank 35,000 40, 000 900,995 State Savings Bank 30,000 9,000 444, 735 New Haven—New Haven Savings Bank 25,000 25,000 526,335 Niles City—Niles City Bank 100,000 25,000 1,095,354 Northville—Lapham'State Savings Bank 50,000 18,000 877,432 Onsted—Onsted State Bank 25,000 10,000 304,9 9 Paw Paw—Paw Paw Savings Bank 40,000 10,000 544,145 Petersburg—H. C. McLachlin & Co. State Bank 25,000 5,000 498,110 Petoskey—First State Bank 60,000 15,000 996,396 Pinconning—Pinconning State Bank 30,000 6,000 673,868 Pontiac— American Savings Bank 400,000 60,000 2,244,018 Pontiac Commercial & Savings Bank 000,000 200,000 13,110,798 Port Huron—Federal Commercial & Savings Bank 300.000 125,000 6,042,228 Redford—Redford State Savings Bank 100J 000 42,000 847,658 Rochester—Rochester Savings Bank 50,000 10,000 707,586 Rogers City—Presque Isle County Savings Bank 35,000 15,000 894,069 Romeo—Romeo Savings Bank 100,000 25,000 1,318,522 Royal Oak- First State Bank 100,000 50,000 1,486,226 Royal Oak Savings Bank 100,000 90,000 1,378,648 Saginaw— American State Bank 200,000 100,000 4,076,392 Bank of Saginaw 000,000 500,000 18,233,125 St. Charles—St. Charles State Bank 25,000 6,000 687,199 St. Clair—Commercial & Savings Bank 75,000 20,000 1,104, 727 Saline—Saline Savings Bank 25,000 25,000 586,719 Saugatuck—Fruit Growers State Bank 100,000 25,000 1,174,246 Sebewaing—Farmers & Merchants State Bank 25,000 6,250 326,041 South Haven—Citizens State Bank 100,000 50,000 1,401,966 Sparta—Sparta State Bank 30,000 8,000 475,342 Spring Lake—Spring Lake State Bank 25,000 17,000 397,301 Suttons Bay—Leelanau County Savings Bank 25,000 10,000 387,679 Tecumseh— Lilley State Bank 40,000 20,000 656,730 Tecumseh State Savings Bank 50,000 30,000 794,032 Traverse City—Traverse City State Bank 200,000 100,000 3,481,301 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 REPORT OF THE FEDERAL, RESERVE BOARD. Total resources. DISTRICT NO. 7.—Continued. MICHIGAN—continued. Vicksburg— Farmers State Bank $25,000 $5,000 $500,669 First State Bank 30,000 7,200 401,838 Warren—State Savings Bank of Warren 25,000 25,000 630,977 Washington—Washington Savings Bank 25,000 15,000 273,723 Wayne—Wayne Savings Bank 50,000 50,000 1,331,850 Williamston— Williamston State Bank 50,000 10,000 537,775 Crossman & Williams State Bank 40,000 15,000 399,466 WISCONSIN. (See also District No. 9.) Baraboo—Bank of Baraboo 100,000 50,000 2,1.09,854 Burlington—Bank of Burlington 125,000 25,000 1, 513,104 Clinton—Citizens Bank of Clinton 50,000 10,000 479, 801 Delavan—Citizens Bank of Delavan 50,000 40,000 949,108 Green Lake—Green Lake State Bank 40,000 20,000 401,543 Janesville—Bank of Southern Wisconsin 100,000 10,000 569,703 Kenosha—Merchants & Savings Bank 100,000 20,000 1,530,297 Kewaunee—State Bank of Kewaunee 60,000 15,000 1,021,782 Madison—Bank of Wisconsin 300,000 60,000 3,346, 417 Milwaukee- American Exchange Bank ., 000,000 200,000 10,278,535 Badger State Bank 200,000 30,000 3, 793, 869 Marshall & Ilsley Bank ., 000,000 1,500,000 24, 625,452 Second Ward Savings Bank , 000,000 1,000,000 34,280,505 Mineral Point—Iowa County Bank 100,000 50,000 1,268,185 Mosinee—State Bank of Mosinee 45,000 25,000 616,812 Oakfield—Bank of Oakfield 50,000 10,000 268, 798 Platteville—State Bank of Platteville 50,000 10, 000 1,072,350 Plymouth- Plymouth Exchange Bank 100,000 50,000 1,073,405 State Bank of Plymouth 125,000 32,500 1,036,083 Seneca—Farmers & Merchants State Bank 35,000 17.500 489,596 Sheboygan—Citizens State Bank 200,000 125,000 3,053,064 Stratford—Stratford State Bank 50,000 10,000 I 255,372 Sturgeon Bay—Bank of Sturgeon Bay 100,000 20,000 2,027,528 Waupun—State Bank of Waupun 50,000 17,000 780,310 Wausau—Marathon County Bank 150,000 60,000 I 1,613,354 Winneconne—Union Bank of Winneconne 25,000 I 11.500 459,180 DISTRICT NO. 8. ARKANSAS. Arkansas City—Desha Bank & Trust Co 104,000 152,000 1,284,689 Batesville— Citizens Bank & Trust Co 50,000 20,000 512,703 Union Bank & Trust Co 100,000 16,000 1,177,170 Blytheville—Farmers Bank & Trust Co 50, 000 50,000 751,544 Brinkley—Monroe County Bank 50,000 5,000 241,388 Cabot—Peoples State Bank 25,000 2,500 103,979 Conway—Farmers State Bank 60,000 10,000 795,499 Dardanelle—Dardanelle Bank & Trust Co 50,000 10,000 309,679 Dumas—Merchants & Farmers Bank 50,000 20,000 306,416 Earle—Bank of Commerce 150,000 30,000 831,129 El Dorado—Bank of Commerce 50,000 6,000 lj229,901 England—Citizens Bank & Trust Co 100,000 20,000 409,932 Forrest City—Bank of Eastern Arkansas 50,000 50,000 735,842 Fort Smith—Arkansas Valley Bank 100,000 20,000 \f067,061 Helena—Security Bank & Trust Co 250,000 50,000 1,680,336 Jonesboro— Bank of Jonesboro 200,000 250,000 2,000,969 Jonesboro Trust Co 100,000 50, 000 1,159,086 Lake Village—Chicot Bank & Trust Co 150,000 650,841 Little Rock— American Bank of Commerce & Trust Co 750,000 150,000 9,771,962 Bankers Trust Co 300,000 75,000 4,028,306 Southern Trust Co 500,000 100,000 4,218,132 Union & Mercantile Trust Co 400,000 200,000 6,883,596 W. B. Worthen Co., Bankers 200,000 300,000 2,826,886 Magnolia— Columbia County Bank 50,000 22,500 597,827 Farmers Bank & Trust Co 50,000 45,000 747,337 Marion—Crittenden County Bank & Trust Co 275,000 75,000 1,626,468 Marvell—Bank of Marvell 50,000 8,000 464,176 Newport—Arkansas Bank & Trust Co 200,000 35,000 1,059,176 Paris—American Bank & Trust Co 50,000 10,000 428,511 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 255 Total Surplus. resources. DISTRICT NO. 8—Continued. ARKANSAS—continued. Pine Bluff— Cotton Belt Savings & Trust Co $100.000 $60,000 $1,067,550 Peoples Savings Bank & Trust Co 100,000 50,000 1,043,539 Prescott—First State Bank 50,000 3,500 246,295 Russellville—Bank of Russellviile 75,000 37,750 492,506 Texarkana—Merchants & Planters Bank 200,000 22,000 846,657 Waldron—Bank of Waldron 60,000 20,000 320,033 Warren—Warren Bank 75,000 30,000 497,359 ILLINOIS. (See also District No. 7.) Belleville—Belleville Savings Bank 300,000 250,000 4,347,766 East St. Louis—Union Trust Co. of East St. Louis. 300,000 300,000 4,233,875 Edwardsville—Citizens State & Trust Bank 60,000 40,000 976,779 Effingham—Effingham State Bank 110,000 25,000 884,367 Gillespie—Gillespie Trust & Savings Bank 50,000 15,000 680,137 Greenville—State Bank of Hoiles & Sons 120,000 40,000 1,325,640 Harrisburg—Saline Trust & Savings Bank 100,000 50,000 1,224,871 Lebanon—State Bank of Lebanon 50,000 10,000 486,053 Litchfield—Litchfield Bank & Trust Co 100,000 10,000 865,940 Louisville—Clay County State Bank 25,000 10,000 194,923 Madison—Union Trust "Co 50,000 5,000 376,285 Mount C arm el—First State Bank 100,000 19,000 532,313 Mount Olive—Mount Olive State Bank 50,000 6,000 420,665 O'Fallon—First State Bank of O'Fallon 25,000 5,000 87,670 Quiney—State Savings Loan & Trust Co 1,000,000 200,000 10,501,783 INDIANA. (See also District No. 7.) Evansville—Mercantile Commercial Bank 200,000 100,000 2,702,043 Paoli—Paoli State Bank 4O7 000 10,000 388,140 KENTUCKY. (See also District No. 4.) L H o ar u r i o s d v s i b ll u e r g— State Bank & Trust Co 100,000 21, 0f00 687,542 Kentucky Title Savings Bank & Trust Co. 350,000 100,000 9,078,943 Liberty Insurance Bank .500,000 750,000 17,253,649 Lincoln Savings Bank & Trust Co 500,000 100,000 3,784,412 Owensboro—Central Trust Co 200,000 50,000 2,999,844 MISSISSIPPI. Grenada—Grenada Bank 250,000 350,000 5,027,168 Rosedale—Bolivar County Bank 150,000 6,000 926,697 Tunica—Citizens Bank of Tunica 75,000 27,500 974,196 (See also District No. 10.) Bertrand—Commercial Bank of Bertrand 30,000 1,600 77,034 Bowling Green—Pike County 25,000 10,000 311,499 Cabool—Citizens Bank of Cabool 25,000 25,000 396,465 Clayton—Farmers & Commercial Savings Bank. 37,500 7,500 293,443 Iberia—Farmers & Traders Bank 25,000 10,000 405,915 Jefferson City—Exchange Bank of Jefferson City 100,000 25,000 1,686,995 Lexington—Lafayette County Trust Co 75,000 15,000 357,230 Linn Creek—Camden County Bank 25,000 35,000 311,067 Luxemburg—Lemay Ferry Bank 25,000 15,000 869,703 Macon—State Exchange Bank of Macon 100,000 30,000 1,008,905 Maplewood— Bank of Maplewood 50,000 10,000 1,018,871 Marshall—Wood & Huston Bank 100,000 200,000 1, 524,386 Pine Lawn-—Pine Lawn Bank 30,000 3,000 109,402 St. Louis- American Trust Co 1,000,000 300,000 11,682,307 Cass Avenue Bank 200,000 100,000 3,673,994 Farmers & Merchants Trust Co 200,000 100,000 4,662,366 Franklin Bank 600,000 900,000 10,224,453 Grand Avenue Bank 200,000 50,000 2,789,768 Gravois Bank of St. Louis County 25,000 15,000 655,133 International Bank 500,000 500,000 8,363,010 Jefferson-Gravois Bank 200,000 100,000 2,849,611 Lafayette South Side Bank 1,000,000 800,000 21,417,128 Liberty Central Trust Co. 3,000,00(3 1,000,000 43,539,302 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 REPORT OF THE FEDERAL RESERVE BOARD. Total resources. DISTRICT NO. 8—Continued. MISSOURI—continued. St. Louis—Continued. Manchester Bank of St. Louis $250,000 $100,000 $4,472,315 Mercantile Trust Co 3,000,000 7,000,000 56,058,763 Mississippi Valley Trust Co 3,000,000 3,500,000 36,065,632 Mound City Trust Co 200,000 25,000 1,181,215 South Side Trust Co 200,000 50,000 2,802,357 Tower Grove Bank 200,000 80,000 4,948,569 United States Bank 1,000,000 700,000 10,238,174 West St. Louis Trust Co 200,000 50,000 2,188,660 Versailles—Bank of Versailles 75,000 9,600 528,668 Waynesville—Bank of Waynesville 50,000 6,000 652,514 TENNESSEE. (See also District No. 6.) Alamo—Bank of Alamo 25,000 3,000 243,647 Bells—Bank of Crockett 25,000 2,500 313,302 Brownsville—First State Bank 200,000 25,000 1,313,002 Dyer—Farmers & Merchants Bank 40,000 18,286 296,390 Dyersburg—Citizens Bank 50,000 50,000 964,018 Halls—Peoples Savings Bank & Trust Co 25,000 6,000 152,870 Henning—Bank of Henning 25,000 7,500 337,845 Memphis— Bank of Commerce & Trust Co 1,500,000 1,500,000 20,333,847 Commercial Trust & Savings Bank 600,000 150,000 6,881,431 Guaranty Bank & Trust Co 500,000 55,000 4,219,422 Union &~ Planters Bank & Trust Co 1,800,000 500,000 22,161,937 DISTRICT NO. 9. MICHIGAN. (See also District No. 7.) Ewen—The State Bank of Ewen 25,000 15,000 263,562 Gladstone—Gladstone State Savings Bank 50,000 15,000 1,590,895 Gwinn—Gwinn State Savings Bank 25,000 25,000 352,640 Iron Mountain —Commercial Bank 100,000 100,000 2,056,449 Ironwood—Merchants & Miners State Bank 100,000 14,000 634,007 Laurium—State Savings Bank 100,000 125,000 1,036,629 Manistique—The Manistique Bank 50,000 50,000 939,569 Menominee—The Commercial Bank 100,000 20,000 967,486 Sault Ste. Marie- Central Savings Bank 100,000 20,000 1,151,997 Sault Savings Bank 100,000 35,000 1,503,952 South Range—South Range State Bank 30.000 30,000 643,671 MINNESOTA. Benson—Swift County Bank 50,000 50,000 1,356,464 Clarkfield—Clarkfield State Bank 50,000 10,000 820,876- Clinton—Clinton State Bank 25,000 6,000 242,700 Hayfleld—Farmers State Bank 25,000 18,000 531,014 Hutchinson—Farmers & Merchants State Bank... 50,000 12,500 471,783 Ihlen—Ihlen State Bank 25,000 3,000 158,312 Jeffers—State Bank of Jeffers 25,000 20,000 329,538 Kenyon—Kenyon State Bank 50,000 12,000 661,658 Lake City—Lake City Bank of Minnesota 50,000 50,000 827,995 Lewiston—Security State Bank 75,000 30,000 777,108 Luverne—Rock County Bank 50,000 25,000 634,614 Madelia—State Bank of Madelia 50,000 10,000 616,906 Menahga—Farmers & Merchants State Bank , 25,000 5,000 218,050 Minneapolis- Mercantile State Bank 300,000 80,000 2,165,358 North American Bank 200,000 200,000 5,985,122 St. Anthony Falls Bank , 300,000 200,000 6,054,999 Wells-Dickey Trust Co 500,000 100,000 3,538,409 New Richland—State Bank of New Richland 50,000 15,000 617,245 New Ulm—Citizens State Bank of New Ulm , 100,000 100,000 2, 111,521 Red Wing—First Security State Bank 125,000 65,000 1,462,618 Revere—State Bank of Revere 30,000 30,000 195,637 St. Paul- Central Metropolitan Bank 400,000 80,000 6,104,413 Peoples Bank 500,000 100,000 2,794,960 St. Peter—Citizens State Bank of St. Peter 50,000 25,000 752,102 South St. Paul—Drovers State Bank 100,000 50,000 1,443,431 Spring Valley- Farmers State Bank 25,000 6,000 248,584 First State Bank 30,000 40,000 580, 111. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 257 Capital. Surplus. Total DISTRICT NO. 9—Continued. MESTNE SOTA—continued. Waconia—Farmers State Bank 125,000 $10,000 $377,836 Walnut Grove—First State Bank.... 50,000 7,500 345,075 Westbrook—Citizens State Bank 25,000 10,000 253 117 Wnlmar— Kandiyohi County Bank.. 100,000 30,000 1,682', 391 Winona— Deposit Bank , 300,000 200,000 3,781,033 Merchants Bank 200,000 50,000 3,109,119 MONTANA. Ballantine—Ballantine State Bank 25,000 3,500 103,023 Belgrade—Belgrade State Bank 50,000 50,000 430,394 Belt- Farmers & Miners State Bank 50,000 11,000 396,348 State Bank of Bel t , 40,000 10,000 324,676 Billings—Security Trust & Savings Bank , 100,000 10,000 1,000,993 Boulder—Bank of Boulder 75,000 25,000 430,871 Bozeman— Gallatin Trust & Savings Bank 100,000 25,000 850,198 Security Bank & Trust Co 100,000 362,023 Broadus—Powder River County Bank 50,000 1,200 282,415 Browning—Stockmens' State Bank 35,000 9,246 164,917 Butte— The Metals Bank & Trust Co 300,000 200,000 7,015,774 Miners Savings Bank & Trust Co 200,000 50,000 1,426,655 Clyde Park—First State Bank 25,000 2,000 86,722 Culbertson—The Citizens Staie Bank 25,000 10,000 299,178 Denton—Denton State Bank 25,000 5,000 226,992 Dillon— Beaverhead State Bank 50,000 1,500 181,940 Security State Bank 50,000 5,000 166,646 East Helena—East Helena State Bank 50,000 12,500 204,277 Edgar—Edgar State Bank 30,000 2,500 127,106 Ennis—Southern Montana Bank 25,000 25,000 282,224 Eureka—Farmers & Merchants State Bank 25,000 17,000 410,937 Forsyth—Bank of Commerce 75,000 30,000 863, 531 Fromberg—Clarks Fork Valley Bank 25,0C0 2,500 169,659 Hamilton—Ravalli County Bank 50,000 12,500 534,099 Hardin—Hardin State Bank. 50,000 35,000 374,617 Helena- Banking Corporation of Montana 500,000 22,500 2,161,702 Conrad Trust & Savings Bank , 200,000 100,000 1,982,192 Montana Trust & Savings Bank 150,000 75,000 2,607,525 Union Bank & Trust Co 250,000 150,000 3,690,691 Hingham—Hingham State Bank 35,000 7,000 273,353 Hinsdale—Valley County Bank , 25,000 8,000 174,970 Huntley—Huntley State Bank 25,000 10,000 159,180 Iverness—Iverness State Bank 25,000 3,000 118,021 Joliet—Joliet State Bank 25,000 10,000 233,136 Kalispell—Bank of Commerce , 100.000 22,000 685,711 Laurel—American Bank of Laurel 25,000 2,500 229,268 Le wist own— Bank of Fergus County 250,000 250,000 2,749,129 Empire Bank & Trust Co 100,000 35,000 877,793 Lewistown State Bank , 100,000 25,000 613,535 Missoula—American Bank & Trust Co 100,000 25,000 1,679,813 Mocassin—Mocassin State Bank 25,000 7,000 173,298 Nashua—State Bank of Nashua 25,000 4,000 203,842 Opheim—First State Bank 25,000 5,000 175,797 Park City—Park City State Bank 40,000 5,000 274,625 Philipsburg— First State Bank 50,000 10,000 489,960 Philipsburg State Bank 40,000 20,000 336,768 Plenty wood—State Bank of Plenty wood 25,000 10,000 301,471 Reed Point—Reed Point State Bank 25,000 6,500 112,625 Richey—First State Bank 25,000 5,000 118,928 Roundup—Citizens State Bank 50,000 35,000 739,833 Saco—Farmers & Merchants State Bank 25,000 5,000 182,449 Sidney—Yellowstone Valley Bank & Trust Co 100,000 15,000 550,368 Stevensville—First State Bank 40,000 10,000 363,061 Townsend—State Bank of Townsend 100,000 10,000 634,752 White Sulphur Springs—The Central State Bank. 60,000 5,000 225,478 Willow Creek—Willow Creek State Bank 25,000 20,000 295,938 Wolfe Point- First State Bank 30,000 13,000 522,425 Security State Bank 25,000 3,500 242,448 Worden—The Farmers State Bank 25,000 6,000 185,847 Wyola—Little Horn State Bank 25,000 10,000 121,198 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

258 REPORT OF THE FEDERAL RESERVE BOARD. Capital. I Surplus. Total resource^. DISTRICT NO. 9—Continued. NORTH DAKOTA. Enderlin—Enderlin State Bank $50,000 $10,000 $445,042 Fullerton—Farmers State Bank 25,000 1,000 124,751 Golden Valley—First American State Bank. 25,000 2,500 269,328 Jamestown—Security Savings Bank 50,000 10,000 193,168 Noonan—Security State Bank 25,000 5,000 358,175 SOUTH DAKOTA. Beliefourche—Butte County Bank 75,000 25,000 830, 045 Brookings—Bank of Brookings 150,000 50,000 2,090,833 Camp Crook—Little Missouri Bank 25,000 10,000 260,144 Chamberlain—Bra! e State Bank 50,000 10,000 900,316 Gregory—Commercial State Bank 50,000 6,860 558,142 Groton—Brown County Banking Co 25,000 10,000 553,651 Hecla—Farmers & Merchants State Bank 25,000 5,000 324,831 Mitchell—Commercial Trust & Savings Bank. 100,000 20,000 954,209 Newell—Reclamation State Bank 25,000 5,000 168,688 Philip—Bank of Philip 40,000 5,000 353,544 Rapid City- Citizens Bank & Trust Co 50,000 10,000 705,553 Security Savings Bank 50,000 15,000 653,851 Rockham—Farmers State Bank 25,000 10,000 385,711 Sioux Falls- Commercial & Savings Bank 200,000 1,488,925 Sioux Falls Savings Bank 300,000 50,000 5,888,016 South Shore—South Shore Bank 25,000 5,000 251,925 Stratford—First State Bank 30,000 2,000 293,295 Timber Lake—Stockgrowers State Bank 25,000 5,000 202, 713 Webster—Security Bank & Trust Co 00,000 30,000 1,324,508 WISCONSIN. (See also District No. 7.) Arcadia—Bank of Arcadia 50,000 10,000 034,490 Balsam Lake—Polk County Bank 25,000 5,000 239,322 Boyceville—Bank of Boyceville 30,000 6,000 401,863 Ellsworth—Bank of Ellsworth 50,000 25,000 1,099,738 Glenwood City—First State Bank 42,000 2,000 341,760 Grantsburg—First Bank of Grantsburg 50,000 5,500 581,995 Hurley—Iron Exchange Bank 50,000 30,000 758,138 New Richmond—Bank of New Richmond 75,000 37,500 1,258,412 West Salem—La Crosse County Bank 50,000 27,500 599,088 Whitehall—Peoples State Bank 30,000 6,000 433,448 DISTRICT NO. 10. COLORADO. Denver- American Bank & Trust Co 500,000 250,000 8,733,628 International Trust Co 500,000 500,000 14,903,182 Fort Lupton—Fort Lupton State Bank 25,000 15,000 387,116 KANSAS. Anthony—Home State Bank 25,000 4, COO 258,796 Fort Scott—Fort Scott State Bank 100,000 50,000 1,380,398 Hiawatha—The Morrill & Janes Bank 100,000 50,000 946,614 Liberal—Citizens State Bank 50,000 20,000 426,191 Topeka—Kansas Reserve State Bank 200,000 62,000 2,191,964 Wichita- Southwest State Bank , 200,000 68,000 1,583,955 State Savings & Mercantile Bank 200,000 40,000 2,113,298 Winfield—State Bank 100,000 50,000 1,593,950 (See also District No. 8.) Joplin—Conqueror Trust Co 200; 000 125,000 2,202,632 Kansas City- Commerce Trust Co 6,000,000 2,000,000 99,028,573 Live Stock State Bank 200,000 37,500 1,450,372 Midwest Reserve Trust Co 2,000,000 215,000 15,209,013 Savannah—The Wells-Hine Trust Co 100,000 4,800 785,542 South St. Joseph—St. Joseph Stock Yards Bank 350,000 150,000 3,463,288 NEBRASKA. A urora—The Fidelity State Bank 50,000 15,000 684,693 Broken Bow—Custer State Bank 35,000 15,000 330,331 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBEKSHIP. 259 Total Capital. resources. DISTRICT NO. 10—Continued. NEBRASKA—continued. Chappell—Chappell State Bank $50,000 $25,000 $478,692 Elgin—El gin State Bank 100,000 20,000 914.549 Genoa—Farmers State Bank 25,000 1,250 19i;085 Lewellen—Bank of Lewellen 50,000 3,925 238,652 Meadow Grove- Meadow Grove State Bank 25,000 5,000 233,932 Security Bank 25,000 2,500 270,896 Neligh—Security State Bank 30,000 8,000 265,639 Oakland—The Oakland State Bank 25,000 10,000 299,352 Ord—Nebraska State Bank 35,000 12,000 419,916 Fender—Fender State Bank 85,000 19,000 488,210 St. Edward—Farmers State Bank 25,000 6,000 258,766 Wayne—State Bank of Wayne 50,000 ' 17,500 838,542 Western—Saline County Bank 30,000 30,000 220,843 NEW MEXICO. (See also District No. 11.) Aztec—The Citizens Bank 40,000 10,000 197,313 Santa Fe—Capital City Bank. 50,000 10,000 537,910 OKLAHOMA. (See also District No. 11.) Chelsea—Bank of Chelsea 50,000 10,000 510,235 Clinton—Clinton State Bank 50,000 5,700 190,820 Cordell- Cordell State Bank 30,000 5,100 381,188 Oklahoma State Bank 3o;ooo 4,600 304,579 P L O S o t o k ig n c a l u c r e a c s r t — h C e G — i F t r y o i F — r v s i e t r S s — S t e c t F B a u i t a r r e s i n t t y k B S a S o t n a f t k a t O e te k B a B a r a c n n h k k e 1 5 2 3 0 0 5 0 0 , , , , 0 0 0 0 0 0 0 0 0 0 0 0 5 1 5 0 5 8 , , , , 0 0 0 0 0 0 0 0 0 0 0 0 1, 2 3 1 3 9 6 4 5 9 2 4 6 , , , , 1 8 9 8 1 8 7 1 5 5 4 5 WYOMING. Cheyenne—Cheyenne State Bank 100,000 20,000 648,429 Evanston—Stockgrowers Bank 50,000 35,000 633,580 Mountain View—Uinta County State Bank 40,000 4,000 121,289 Van Tassell—The Bank of Van Tassell 25,000 7,000 73,182 DISTRICT NO. 11. ARIZONA. (See also District No. 12.) Safford—Bank of Safford 33,000 42,000 586, 809 Tombstone—Cochise County State Bank 30,000 10,000 294,653 LOUISIANA. (See also District No. 6.) Monroe—Central Savings Bank & Trust Co 375,000 125,000 3,198,508 300,000 100,000 4,287,622 Shreveport—Continental Bank & Trust Co NEW MEXICO. (See also District No. 10.) 100,000 80,000 1,105,024 Albuquerque—The State Trust & Savings Bank 25,000 3,000 95,468 Cloudcroft—First State Bank 30,000 6,000 109,098 Corona—Stockmen's State Bank 60,000 25,000 256,017 Lovington—The First Territorial Bank 25, 000 5,000 246,034 Portales—Security State Bank OKLAHOMA. (See also District No. 10.) 25,000 3,000 217,749 Broken Bow—The McCurtin County Bank 25,000 3,000 188,653 Coleman—The Coleman State Bank 50,000 10,000 263,487 Fort Towson—First State Bank 50,000 2,500 305,929 Valliant—Farmers State Guaranty Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

260 REPORT OF THE FEDERAL RESERVE BOARD. Capital. Surplus. Total resources. DISTRICT NO. 11—Continued. TEXAS. Alice—Citizens State Bank $60,000 $20,000 $418,747 Alpine—Alpine State Bank 30,000 40;ooo 274,796 Alto—Alto State Bank 25,000 234,836 Anson—Anson State Bank 50,000 12,278 502,643 Avery—Avery State Bank 25,000 55,000 93,658 Ballinger—Ballinger State Bank & Trust Co 60,000 12,500 336,240 Bay City- 4,000 Bay City Bank & Trust Co 65,000 20,000 471,056 First State Bank 100, 000 10,000 469,224 Beaumont- Guaranty Bank & Trust Co 100,000 20,000 1,576,958 Texas Bank & Trust Co 250,000 130,000 2,736,319 Beeville—Beevilie Bank & Trust Co 50,000 32,500 379,791 Bishop—First State Bank of Bishop 25,000 10,000 341, 443 Bomarton—First State Bank 32,000 1,500 159,143 Bonham— Fannin County Bank 100,000 50,000 919, 444 First State Bank 200,000 100,000 1,583, 584 Bremond—First State Bank 50,000 12,000 386,062 Bridgeport—Bridgeport State Bank 25,000 5,000 147,659 Brownfield—Brownfield State Bank 25,000 25,000 252^ 940 Bryan—First State Bank & Trust Co 100,000 50,000 719,352 Caddo Mills—The Caddo Mills State Bank 30,000 21,000 158, 852 Canton—Texas State Bank 50,000 25,000 166,142 Canyon—First State Bank 40,000 6,000 266, 532 Celina— The Celina State Bank 35,000 3,000 171,421 First State Bank 50,000 290,740 Childress— City Guaranty State Bank 100,000 10,000 571,351 Farmers & Mechanics State Bank 50,000 60, 000 842,369 Clarendon—Farmers State Bank. 50,000 10,000 193', 892 Clifton- Farmers Guaranty State Bank 30,000 30, 000 306,570 First Guaranty State Bank 40,000 20,000 204,950 Coahoma—First State Bank of Coahoma 25,000 1,500 122,216 Collinsville—First Guaranty State Bank 25,000 8, 000 208,251 Commerce— Citizens State Bank 25,000 12, 500 160,676 State Bank of Commerce 50,000 3,500 252,822 Como—Como State Bank 25,000 25,000 174,109 Cooper—Security State Bank 100,000 620,345 Copperas Cove—First State Bank 35,000 5,000 176,854 €orsicana—First State Bank 200,000 40,000 1,082,725 Cross Plains—First Guaranty State Bank 30,000 3,000 238,027 Crowell—First State Bank 30,000 30, 000 325,640 Cuero—First State Bank & Trust Co 100,000 50, 000 503,080 Dallas- Central State Bank 1,000,000 500,000 5,890,002 Dallas County State Bank 250,000 110,000 2,904,916 Guaranty Bank & Trust Co 1,000,000 125,000 8,358,757 Decatur—Security State Bank of Decatur 60,000 154,134 De Kalb—First State Bank 100,000 ""25," 666 350,845 Del Rio—Del Rio Bank & Trust Co 100,000 80,000 448,484 Denton—First Guaranty State Bank 50,000 8,000 362,703 East Bernard—Union State Bank 50,000 10,000 217,532 Edgewood—Farmers & Merchants State Bank * 35,000 12,500 149, 302 El Paso— American Trust & Savings Bank 350,000 50,000 3,015,296 El Paso Bank & Trust Co 200,000 26,000 2,338,779 Security Bank & Trust Co 200,000 25,000 1,807,797 Emhouse—The First State Bank 30,000 20,000 112,559 Falfurrias—Falfurrias State Bank 75,000 1,500 293,23 1 Ferris—Farmers & Merchants State Bank 50,000 15,000 269,737 Flatonia—Flatonia State Bank 50,000 5,000 420, 594 Floydada—First State Bank 50,000 15,000 482,349 Forney—Forney State Bank 25,000 20,000 154,907 Franklin— First State Bank 30,000 15,000 272,336 Frost—The Citizens State Bank 25,000 50,000 213,029 Galveston— South Texas State Bank 200,000 150,000 3,688,833 Texas Bank & Trust Co 400,000 600,000 7,231,744 Ganado—The Farmers State Bank 35,000 2,000 88,390 Gatesville—Guaranty State Bank & Trust Co 50,000 13,500 427,882 Georgetown—Farmers State Bank 50,000 50,000 643,478 George West—First State Bank 50,000 18,000 211,888 Gilmer—Gilmer State Bank 50,000 4,000 157,126 Goldthwaite—Trent State Bank 100,000 50,000 691,000 Gonzales—Gonzales State Bank & Trust Co 75,000 25,000 497, 894 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 261 Capital. Surplus. Total DISTRICT NO. 11—Continued. TEXAS—continued. Graford—First State Bank $50,000 S20,000 $204,214 Grand Prairie- First State Bank 40,000 20,200 246,387 Guaranty State Bank 25,000 108,259 H G a re ll e s n y v i i l l l l e e — — F C a i r t m ize e n rs s S S t t a a t t e e B B a a n n k k 1 2 00 5 ; , 0 0 0 0 0 0 5 1 , , 0 00 0 0 0 2 3 2 7 3 7 , ,0 6 7 3 4 7 Hamilton—Hamilton Bank & Trust Co 50,000 50,000 327,901 Hamlin—First State Bank 40,000 20,000 405,925 Hedley—Guaranty State Bank 25,000 12,500 93,576 Hereford—First State Bank & Trust Co 50,000 50,000 473,427 Hillsboro—First State Bank 150,000 15,000 886,508 Italy—Farmers State Bank .50,000 12,500 298,908 Jacksonville—First Guaranty State Bank 62,500 25,000 592,965 Josephine—Josephine State Bank 30,000 6,000 105,418 Junction—Junction State Bank 100,000 110,000 750, 460 Kaufman—First State Bank 100,000 80,000 622,491 Kenedy— Farmers & Merchants State Bank 50,000 50,000 298,283 First State Bank & Trust Co 60,000 90,000 506,363 Kerens—First State Bank 50,000 30,000 249,735 Kilgore—Kilgore State Bank 25,000 12,500 119,553 Killeen— First State Bank 35,000 16,500 300,676 Guaranty State Bank 30,000 107,309 Kirkland—First State Bank 50,000 2,500 229,252 Ladonia—First State Bank 35,000 10,000 422,244 La Feria—Cameron County Bank 25,000 3,000 195,494 Lamesa—First State Bank 60,000 30,000 540,713 Leakey—First State Bank 25,000- 1,500 68,925 Leonard—First State Bank 50,000 11,500 420,946 Liberty—Liberty State Bank 35,000 10,000 331,076 Lockney—Lockney State Bank 50,000 2,500 210,173 Longview—Commercial Guaranty State Bank 50,000 296.218 Loraine—The First State Bank 30,000 30,000 349,537 Lorenzo—First State Bank 25,000 25,000 250,376 Lubbock— Lubbock State Bank 100,000 50,000 870,413 Security State Bank & Trust Co 100,000 6,000 457,195 Lufkin—Citizens Guaranty State Bank 75,000 5,000 469,519 Luling- Citizens State Bank 25,000 7,000 145,904 Lipscomb Bank & Trust Co 75,000 55,000 307,647 Me Allen—First State Bank & Trust Co 130,000 664,335 McGregor—First State Bank 50,000 " 6,666 284,408 McKinney—Central State Bank 75,000 7,000 555.219 Madisonville—Farmers State Bank 25,000 25,000 255,435 Malone—First State Bank 25,000 8,000 107,148 Matador—First State Bank 37,500 12,500 348,155 Mathis—First State Bank 30,000 20,000 133,319 Maypearl— " Citizens State Bank 25,000 25,000 158,277 Farmers & Merchants State Bank 25,000 25,000 155,660 Memphis—Citizens State Bank 75,000 50,000 537,884 Mercedes—Bank of Commerce & Trust Co 50,000 5,000 151,014 Mertens—First Guaranty State Bank 25,000 7,000 122,199 Mission—First State Bank of Mission. 50,000 10,000 327,954 Moran—Moran State Bank 40,000 2,238 193,611 Mount Calm—First State Bank 40,000 10,000 187,118 Mount Pleasant—Guaranty State Bank 60,000 30,000 451,901 Munday—The First State Bank 35,000 5,000 234,473 Murchison—First State Bank 25,000 3,400 96,286 Nacogdoches—Commercial Guaranty State Bank 100,000 50,000 1.253,970 Normangee—First State Bank 25,000 25,000 210,159 North Zulch—Farmers Guaranty State Bank 25,000 2,500 137,325 Orange—Guaranty Bank & Trust Co 100,000 460,134 Paducah—First State Bank 50,000 50,000 468,188 Palmer—First Guaranty State Bank 25,000 17,500 240,668 Pampa—Gray County State Bank 25,000 13,000 211,390 Paradise—Paradise State Bank 25,000 300 94,304 Pans- First State Bank 150,000 100,000 1,462,172 Lamar State Bank & Trust Co 150,000 53,500 1,670,524 Pecos—Pecos Valley State Bank 110,000 40,000 539,679 Penelope—Penelope State Bank *. 25,000 135,660 Perrin—First State Bank of Perrin 25,000 12,500 128,431 Piano—The Farmers State Bank 60,000 40,000 340,881 Port Arthur—Merchants State Bank 100,000 50,000 1,316,729 .85227—22- -18 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 REPORT OF THE FEDERAL RESERVE BOARD. Total, Capital. Surplus. resources. DISTRICT NO. 11—Continued. TEXAS—continued. Post City—First State Bank $25,000 $3,000 $175,861 Quanah—First Guaranty State Bank.. 100,000 50,000 839,044 Rails- First State Bank 25,000 15,000 153,585 Guaranty State Bank & Trust Co. 60,000 7,000 301,562 Reagan—First State Bank 25,000 20,000 139,620 Rice—First State Bank 50,000 203,244 Richardson—Citizens State Bank 35,000 4,000 135,858 Richland— First State Bank 25,000 20,000 254,667 Roaring Springs—First State Bank 25,000 21,000 170.510 Robstown— First State Bank. 25,000 15,000 188,555 Guaranty State Bank 50,000 10,000 346,139 Rockwell—Guaranty State Bank 60,000 20,000 315,525 Royse—First State Bank 50,000 25,000 254,354 Rusk—Farmers & Merchants State Bank & Trust Co. 100,000 2,500 652,895 Sabinal—First State Bank 80,000 1,000 420,449 San Antonio—Central Trust Co 200,000 4,104,743 San Augustine—Commercial Guaranty State Bank 50,000 10,000 399,752 Santa Anna—First State Bank 35,000 20,000 361,939 Savoy—First State Bank 25,000 9,000 159,606 Seminole—The First State Bank 40.000 30,000 150,571 Seymour—First Guaranty State Bank 35,000 5,500 140,751 Shamrock—Farmers & Merchants State Bank , 50,000 50,000 330,614 Shiro—Farmers State Bank 25,000 25,000 109,883 Silverton—Briscoe County State Bank 25,000 57,440 Sinton— Bank of Commerce 50,000 10,000 377,462 Slaton—The First State Bank 40,000 3,500 261,717 Snyder—First State Bank & Trust Co 50,000 25,000 321,767 Spearman—Guaranty State Bank 25,000 5,000 82,951 Stamford—First State Bank 100,000 35,000 615,056 Streetman—The First State Bank 25,000 20,000 168,091 Sweetwater—Texas Bank & Trust Co 100,000 75,000 762,370 Teague—The First State Bank 50,000 5,000 524,667 Terrell—First State Bank 200,000 165,000 1,252,846 Tioga—First Guaranty State Bank 30,000 8,500 141,275 Trenton—Guaranty State Bank 25,000 10.000 113.511 Troup—Guaranty State Bank 25,000 20,000 256,272 Tyler—Peoples Guaranty State Bank 100,000 32,100 1,232,126 Valley Mills—Citizens State Bank 30,000 4,000 107,594 Valley View—First Guaranty State Bank 25,000 9,300 109,831 Waco—First State Bank & Trust Co 300,000 115,000 2,212,923 Waxahachie— Guaranty State Bank & Trust Co 200,000 23,000 1,201,734 Weatherford—First State Bank 125,000 23,500 855,543 Wellington—Wellington State Bank 50,000 50,000 484,716 West—First State Bank of West 50,000 292,014 Wharton— Security Bank & Trust Co 50,000 15,000 367,720 Wharton Bank & Trust Co 50,000 150,000 764,531 White Deer—First State Bank 25,000 10,000 179,909 Wills Point—First State Bank 100,000 44,203 486,394 Winnsboro—Merchants & Planters State Bank 30,000 30,000 340,092 Wolfe City—First State Bank 50,000 25,000 272,886 Woodville—Woodville State Bank 30,000 3,000 128,438 Wortham—First State Bank 50,000 15,000 955,037 Wylie— First State Bank 75,000 25,000 493,168 Yoakum—The Yoakum State Bank 100,000 100,000 1,239,825 DISTRICT NO. 12. AEIZONA. (SeealsoDistrictNo.il.) Buckeye—Buckeye Valley Bank 25,000 5,000 122,452 500,000 100,000 6,033,395 Phoenix—The Valley Bank CALIFORNIA. 500,000 250,000 6,222,654 Alameda—Bank of Alameda 600,000 235,000 8,656,494 Bakersfield—Security Trust Co 100,000 47,000 822,251 Brawley—Imperial Valley Bank 25,000 45,000 402,725 Cedarville—Surprise Valley Bank 100,000 4,500 703,723 Chico—Peoples Savings & Commercial Bank... 50,000 28,000 792,094 Downey—Los Nietos Valley Bank Fresno— 1.000,000 456,000 10,165,826 Fidelity Trust & Savings Bank 700,000 70,000 4,848,696 The Valley Bank 50,000 7,000 417,570 Fullerton—Standard Bank of Orange County.. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 263 Total. Capital. Surplus. DISTRICT NO. 12—Continued. CALIFORNIA—continued. Holtville—The HoJtville Bank $75,000 $2,500 $408,539 Kingsburg—Kingsburg Bank 110,000 55,000 I 1,188,854 Lemoore—Bank of Lemoore 100,000 50,000 I 1,011,442 Long Beach- Farmers & Merchants Bank 350,000 350,000 ! 6,674,226 Long Beach Trust & Savings Bank 600,000 225,000 i 9,714,318 Los Angeles— Guaranty Trust & Savings Bank ,000,000 1,300,000 i 37,795,746 Los Angeles Trust & Savings Bank ,500,000 2,000,000 ! 73;926,388 Security Trust & Savings Bank ,220,000 2,780,000 I 151,772,058 Union Bank & Trust Co ,500,000 145,000 | 9,183,150 Macysville—Hideout Bank 250,000 310,931 4,919,337 Norwalk—Bank of Norwalk 25,000 17,500 492,024 Pasadena—Citizens Savings Bank 300,000 50,000 3,193,740 P Q P o l u a r i c t n e e e r r v y v i i — l l l l e e P — — lu E T m l h a e D s P o C r i o o ad n u o e n e t C y r o B B u a a n n n t k y k Bank 1 6 0 7 5 5 0 , , , 0 0 0 0 0 0 0 0 0 1 3 1 1 0 2 5 , , , 0 0 0 0 0 0 0 0 0 I I I ! 1 1 , , 3 5 7 7 0 5 1 5 4 , , , 3 4 0 0 8 5 5 2 9 Sacramento— The Peoples Bank 800,000 135,000 ! 8,333,732 Sacramento-San Joaquin Bank \, 000,000 175,000 1 23,272,058 St. Helena—Bank of St. Helena 85,000 32,500 ! 892,981 Salinas—Monterey County Bank 275,800 63,000 i 2, 846,204 San Bruno—California Bank of San Mateq County... 25,000 700 ' 152,246 San Fernando—San Fernando Valley Savings Bank. 25,000 5,500 I 237,158 San Francisco— Anglo-California Trust Co 500,000 850,000 !. 38 074,889 Bank 0/ Italy. 000,000 2,500,000 !191,376,458 British American Bank 000,000 30,000 ! 2,901,6.84 The French American Bank 000,000 275,000 j 14,970.955 Italian-American Bank. 250,000 275,000 ; 13,132,265 Mercantile Trust Co 000,000 3,000,000 ! 74,040,634 The Mission Bank 200,000 120,000 I 3.269,714 Mission Savings Bank 500,000 40,000 i 7,559,727 San Francisco Savings & Loan Society. ., 000,000 2,550,000 i 71,851,300 Security Bank & Trust Co 750,000 335,000 : 6,191,044 San Jose- Garden City Bank & Trust Co. 500,000 645,000 [, 8,353,339 The Growers Bank 300,000 30,000 ! 1,187.705* San Luis Obispo— Citizens State Bank 150,000 20 000 ' 64«, 299 Commercial Bank 700,000 75,000 ,' 5, 565,696 Santa Ana—Orange County Trust & Savings Bank.. 300,000 100.000 i 2,224,992 Santa Barbara—Commercial Trust & Savings Bank. ,000,000 370.000 i 9, 855, 271 Santa Maria—Bank of Santa Maria 600,000 125,000 I 4,632,609 Santa Monica— Bank of Santa Monica 200,000 100,000 ! 3,603,257 Ocean Park Bank 181,700 38,500 J 2,595,003 Sausalito—Bank of Sausalito 70,000 11,500 i 768,659 Sawtelle—Citizens State Bank 100,000 3,500 I 1,300,838 Turlock—-Commercial Bank of Turlock 75,000 37,000 ! 1,007,951 Whittier—The Community Bank of Whittier 125,000 13,500 j 812,641 IDAHO. Arco—Butte County Bank 25,000 1,000 I 90,661 Ashton—Security State Bank 50,000 20,000 ; 561,703 Bellevue—Bellevue Bank & Trust Co 50,000 258,544 Blackfoot— Blackfoot City Bank 50,000 10,000 343,621 D. W. Standfod & Co , 100,000 110,000 2,173,082 Cambridge—Peoples Bank 40,000 8,000 241,786 Castleford—Bank of Castleford 25,000 1,250 71,376 Drummond—First State Bank 25,f~~ 90,671 Eagle—Bank of Eagle 3,000 144,900 Eden—Eden State Bank , 2, 500 148,334 Emmett—Bank of Emmett 25,000 693.352 Filer—Farmers & Merchants Bank 5,000 177,790 Genesee—Genesee Exchange Bank 12, 500 442,823 Gooding—Citizens Staie Bank 15,000 243,710 Grangeville—Bank of Camas Prairie 50,000 624,778 Hansen—Bank of Hansen 5,000 259, 880 Hazelton—Hazelton State Bank 5,700 152,434 Homedale—First Bank of Homedale 103, 369 Idaho Falls- Anderson Brothers Bank 424,600 171,400 2,047,621 Farmers & Merchants Bank 150,000 30,000 794,569 Kimberly—Bank of Kimberly 35,000 15,000 428,185 Kuna—The Kuna State Bank 25,000 1,500 96,803 Mackay—W. G. Jenkin s & Co 50,000 10,000 334,675 Malad 'City—J. N. Ireland & Co., Bankers 40,000 12,500 448,335 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

264 REPORT OF THE FEDERAL RESERVE BOARD. Capital. Surplus. res T o o u t r a c l es. DISTRICT NO. 12—Continued. IDAHO—continued. Menan— Jefferson State Bank $25, $:], 202 $122,754 Meridian—Meridian State Bank 25, 3,500 166, 044 Montour—Farmers & Stockgrowers Bank 25, 1,'500 108.758 Murtaugh—Bank of M urtaugh 25, :«,500 105,690 New Plymouth—Farmers State Bank 25, 10,000 289,912 Np.'iperce— Union State Bank 50, 10,000 392,089 Oakley—Farmers Commercial & Savings Bank. 25, 15,000 220,948 Orofino—Bank of Orofi.no 25, 5,000 309,200 Pieabo—Pica bo State Bank 50, 189,919 Pocatello—Citizens Bank 300, 60,000 1,806,600 Rexburg—Farmers & Merchants Bank 50, 10,000 '363,083 Richfield—First State Bank 25, 126,881 Rupert—Farmers & Merchants Bank 000 . 145,375 St. Anthony—St. Anthony Bank & Trust Co... 000 30,000 516,411 Soda Springs—Largilliere Company Bankers 000 I 12,000 389,014 Star—The Farmers Bank 000 I 13,000 189,779 Sugar City—Fremont County Bank 000 i 5,000 221,825 Teton City—First State Bank 30,000 i 107,709 Tetonia—'Farmers State Bank 25,000 | 2,500 135,688 Twin Falls—Twin Falls Bank & Trust Co 100,000 ' 75,000 1,565,255 Victor—Victor State Bank 25,000 I 10,000 150,655 .Albany—Albany State Bank 50,000 i 10,000 762,550 Athena—Athena State Bank 25,000 ' 84,778 Aurora—Aurora State Bank 25,000 16,000 290,984 Central Point—Central Point State Bank 25,000 5,000 326,652 Dallas—Dallas City Bank 50,000 15,000 459,436 Enterprise—Enterprise State Bank 50,000 i 27,500 338,122 Fossil—Steiwer & Carpenter Bank 100,000 ! 5,000 497,657 Grants Pass—Grants Pass &: Josephine Bank 75,000 I 20,000 923,320 Gresham—First State Bank 30,000 25,000 540,919 Haines—Bank of Haines 25,000 5,000 195,137 Helix—Bank of Helix 50,000 i 12;ooo 238,072 Hood River—Butler Banking Co 100,000 I 35,000 1,155,003 Jordan Valley—Bank of Jordan Valley 50,000 I 25,000 608,525 Josepph—Firsetp Bank of Joseplt 50,000 ! 13,500 275,337 LLka ke viiewLk— Lake CCto unty LLoan & Savings Bank. 40,000 10,000 273,327 Madras—Madras State Bank 25,000 25,000 266,638 Marshffield— Bank of Southwestern Oregon 100,000 18,000 883,863 Scandinavian American Bank 25,000 7,500 383,729 Medford—Jackson County Bank 100,000 20,000 1,133,317 Moro—Farmers State Bank 45,000 7,000 197,316 Myrtle Point—Bank of Myrtle Point 50,000 15,000 437,936 North Portland—Live Stock State Bank 100,000 10,000 949,049 Oakland—S. G. Young & Co. Bank 50,000 15,000 698,284 Oregon City— Bank of Commerce 100,000 ! 28,000 1,021,317 Bank of Oregon City 100,000 I 50,000 1,879,170 Pendleton—The Inland Empire Bank 250,000 I 25,000 1,062,285 Pilot Rock—First Bank of Pilot Rock 30,000 | 35,000 379,977 Portland— Hibernia Commercial & Savings Bank 200,000 100,000 5,400,102 Ladd & Tilton Bank ,000,000 |1,000,000 24,583,407 Reedsport—First Bank of Reedsport 25,000 I 1,750 123,224 Skaniko—Eastern Oregon Banking Co 50,000 10,000 269,068 Stanfield—The Bank of Stanfield 25,000 12,500 164,975 The Dalles—Wasco County Bank 100,000 5,000 614,215 Tillamook—Tillamook County Bank 40,000 10,000 644,909 Wasco—Bank of Wasco 25,000 25,000 276,099 Woodburu —The Bank of Woodburn 50,000 15,000 712,803 UTAH. Bingham Canyon—Bingharn State Bank 50,000 4,000 174,447 Brigham City—Security Savings Bank 50,000 21,000 666,755 Cedar City- Bank of Southern Utah 75,000 75,000 551,322 Iron Commercial & Savings Bank 50,000 5,000 265,761 Delta—Delta State Bank 25,000 12,500 265,162 Ephriam—Bank of Ephriam 50,000 32,500 408,828 FUlmore—Fillmore Commercial & Savings Bank. 50,000 10,000 374,661 Fountain Green—Bank of Fountain Green 25,000 15,000 310,783 Gunnison—Gunnison Valley Bank 50,000 16,000 391,980 Helper—Helper State Bank 50,000 40,000 679,727 Kaysville—Barnes Banking Co 50,000 80,000 534,734 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK MEMBERSHIP. 265 Total Capital. Surplus. resources. DISTRICT NO. 12—Continued. UTAH—continued. Logan- Cache Valley Banking Co $100,000 $31,000 $1,337,879 Farmers & Merchants Savings Bank 100,000 18,000 598,291 Thatcher Bros. Banking Co 150,000 50,000 1,617,417 Monti cello—Monti cello State Bank 50,000 8,000 147,056 Myton—Myton State Bank 41,761 8,300 136,030 Ogden—Ogden Savings Bank 150,000 150,000 2,269,281 Panguitch—State Bank of Garfield 50,000 75,000 427,817 Parowan—Bank of Iron County 35,000 21,000 261,533 Payson— Payson Exchange Savings Bank 50,000 30,000 563,462 State Bank of Payson 50,000 16,000 513,278 Price- Carbon County Bank 100,000 10,000 349,819 Price Commercial & Savings Bank 50,000 70,000 837,376 Provo— Farmers & Merchants Bank 100,000 15,000 852,387 Knight Trust & Savings Bank 300,000 34,000 1,713,818 Richfield— James M. Peterson Bank 50,000 50,000 646,688 State Bank of Sevier 45,000 45,000 500,270 Richmond—State Bank of Richmond 25,000 12,500 193,725 Salina—First State Bank of Salina 25,000 50,000 455,309 Salt Lake City- Columbia Trust Co 250,000 25,000 1,288,044 Deseret Savings Bank 500,000 300,000 5,813,466 Tracy Loan & Trust Co 227,' 00 132,710 911,596 Utah Savings & Trust Co 300,000 39,393 1,645,739 Walker Brothers Bankers 650,000 250,000 16,975,840 Spanish Fork—Commercial Bank of Spanish Fork.. 50,000 25,000 291,363 Vernal—Bank of Vernal , 60,000 15,000 433,581 WASHINGTON. Albion—Albion State Bank 25,000 6,000 87,88*1 Almira— Almira State Bank 50,000 13,000 362,916 Farmers State Bank 25,000 6,500 171,410 Bellingham—Northwestern State Bank 100,000 85,000 1,454,087 Buena—Buena State Bank 25,000 1,500 160,606 Centralia—Centralia State Bank 100,000 13,000 634,876 Chehalis—CofTman-Dobson Bank & Trust Co 150,000 100,000 2,037,281 Colfax—First Savings & Trust Bank of Whitman County.. 75,000 17,500 343,714 Davenport—Lincoln County State Bank 50,000 20,000 451,042 Ellensburg—The Farmers Bank 100,000 25,000 1,202,061 Enumclaw— Peoples State Bank 25,000 2,776 419,151 State Bank of Enumclaw 30,000 20,000 530,076 Everett—Bank of Commerce 100,000 25,000 1,559,784 Farmington—Bank of Farmington 25,000 10,000 231,418 Garfield—First State Bank. 50,000 20,000 348,815 Gold^ndale—State Bank of Goldendale 75,000 8,500 436,003 Hoauiam—Lumbermen's Bank and Trust Co 100,000 25,000 1,108,418 La Crosse— First State Bank 60,000 40,000 452,429 Security State Bank 30,000 7,500 138,012 Molson—Molson State Bank 25,000 10,000 234,603 Odessa—Farmers & Merchants Bank 25, 000 10,000 357, 631 Okanogan—Commercial Bank 50, 000 10,000 453, 897 Pine City—Pine City State Bank 25,000 3,500 149, 495 Pomeroy—Pomeroy State Bank 50,000 i rcn nna i ino nno Port Townsend—Merchants Bank 75,000 25, 000 1,049,772 Pullman—Pullman State Bank 37,500 10,000 656, 982 Puyallup— Citizens State Bank 50,000 10,000 712, 727 Puyallup State Bank 50, 000 2,500 649, 222 Reardan—Farmers State Bank 50,000 20,000 414,248 Renton— Citizens Bank of Renton 25,000 5,000 510,365 Renton State Bank , 25,000 2,500 229, 018 Ritzville—Ritzville State Bank 25,000 2,500 126,951 Rockford—Farmers & Merchants Bank 25,000 6.500 222,271 Rosalia—Bank of Rosalia 25,000 5', 000 276,127 St. John—Farmers State Bank 40,000 10,000 274,354 Selah—Selah State Bank 30,000 6,000 381,997 South Bend—Pacific State Bank 100,000 10,000 1,127,453 Spokane- Spokane & Eastern Trust Co 1,000,000 250,000 10,891,392 Washington Trust Co 200, 000 50, 000 1,527,082: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 REPORT OF THE FEDERAL RESERVE BOARD. DISTRICT NO. 12—Continued. WASHINGTON—continued. Sprague—Farmers State Bank Stan wood—Bank of Stan wood Tacoma—Puget Sound Bank & Trust Co. Tekoa— Citizens State Bank Tekoa State Bank Toppenish— Centra] Bank of Toppenish Traders Bank Uniontown—Farmers State Bank Walla Walla— The Farmers & Merchants Bank 1,573,488 Peoples State Bank 1, 693,463 Wilbur—The State Bank of Wilbur 554,397 Yakima— The Commercial Bank of Yakima 756,913 Yakima Valley Bank 1.738,334 Zillah—Zillah State Bank 80, 793 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BA^sTK MEMBERSHIP. 267 ABSTRACT OI< CONDITION REPORTS OF STATE BANK AND TRUST COMPANY MEMBERS OF THE FEDERAL RESERVE SYSTEM ON DEC. 29, 1920, APR. 28, JUNE 30, AND DEC. 31, 1921. [In thousands of dollars.] Dec. 29, Apr. 28, June 30, Dec. 31, 1920—1,481 1921—1,550 1921—1,595 1921—1,614 banks. banks. banks. banks. RESOURCES. Loans and discounts 5,640,646 5,812,696 5,772,959 5,692,229 Overdrafts 5,708 4,533 4,619 4,634 Customers' liability on account of acceptances 212,494 189,514 174,284 142,896 United States Government securities 629,955 627,717 644,043 674,353 Stock of Federal Reserve Banks 30,887 32,934 33,196 33,512 Other bonds, stocks, and securities 1,340,247 1,387,588 1,405,300 1,398,542 Banking house, furniture, and fixtures 177,952 194,491 198,518 212,671 Other real estate 26,957 30,510 29,060 32,804 Gold and gold certificates 13,858 14,921 13,125 8,727 All other cash in vault 170,682 147,602 143,063 128,536 Reserve with Federal Reserve Banks 578,688 577,174 584,457 615,082 Items with Federal Reserve Banks in process of collection. 122,213 117,993 120,763 127,131 Due from banks, bankers, and trust companies 381,113 354,710 338,151 359,043 Exchanges for clearing house, also checks on other banks in same place 289,333 213,983 368,894 270,613 Outside checks and other cash items 34,368 27,801 39,377 44,133 United States securities borrowed 35,710 Other securities borrowed 381 Other assets 171,693 151,688 139,326 123,863 Total. 9,826,794 9,885,855 10,009,135 9,904,8 LIABILITIES. Capital stock paid in 527,520 579,391 585,530 Surplus fund 507,503 528,112 531,918 524, 574 Undivided profits, less expenses and taxes paid 183,445 184,483 170,389 170,115 Vmounts reserved for interest and taxes accrued 46,852 47,740 49,750 32,947 Due to Federal Reserve Banks 4,053 5,371 5,915 6,639 Due to banks, bankers, and trust companies 534,767 576,124 556,184 587, 875 Certified and cashiers' or treasurers' checks outstanding. 210,728 164,250 226,934 173,487 Demand deposits 4,519,602 4,475,929 4,585,885 4,572,500 Time deposits 2,556,818 2,645,703 2,671,593 2,702,110 United States deposits 106,166 99,625 142,457 120,308 Bills payable with Federal Reserve Banks 267,245 243,775 164,189 116,819 Bills payable other than with Federal Reserve Banks... 56,665 51,536 55,489 42,183 •Cash letters of credit and travelers' checks outstanding. 12,339 12,686 18,998 12,470 Acceptances executed for customers i 218,292 194,759 178,483 144,177 Acceptances executed by other banks for account of reporting banks 5,179 2,479 5,687 United'States securities borrowed 35,752 Other securities borrowed 381 Other liabilities 74,799 71,192 62,942 70,747 Total.. i, 826,794 9,885,855 10,009,135 >, 904, g Liability for rediscounts with Federal Reserve Banks.. 433,514 328,164 344,571 206,511 Liability for rediscounts other than with Federal Reserve Banks 29,663 19,093 20,849 27,522 Ratio of reserve with Federal Reserve Bank to net deposit liability (per cent) 10.4 10.3 10.4 10.8 1 Includes acceptances executed by other banks for account of reporting banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

268 REPORT OF THE FEDERAL RESERVE BOARD. ABSTRACT OF CONDITION REPORTS OF ALL MEMBER BANKS (BOTH NATIONAL AND STATE) OF THE FEDERAL RESERVE SYSTEM ON DEC. 29, 1920, APR. 28, JUNE 30 r AND DEC. 31, 1921. [In thousands of dollars.] Dec. 29, Apr. 28, June 30, Dec. 31, 1920—9,606 1921—9,698 1921—9,745 1921—9,779 banks. banks. banks. banks. RESOURCES. Loans and discounts 17,731,760 17,176,493 16,894,785 16,671,278 Overdrafts 22,676 15,302 14,588 14,582 Customer's liability on account of acceptances 566.678 471,992 412,571 343,559 United States Government securities 2,759,428 2.627,073 2,661,078 2,647,793 Other bonds, stocks, and securities 3,360,948 3,410,964 3,443,577 3,512,891 Banking house furniture, and fixtures 565,567 593,428 608,812 642,503 Other real estate 73,901 82,886 80,786 87,152 Cash in vault 677,925 564,022 529,764 478,416 Reserve with Federal Reserve Banks 1,763,424 1,654,329 1,624,662 1,758,341 Items with Federal Reserve Banks in process of collection. 544,815 431,378 448,765 477,042 Due from banks, bankers, and trust companies 1,576,622 1,324,986 1,353,614 1,449,637 Exchanges for clearing house, also checks on other banks in same place 963,881 641,528 1,085,375 777,439 Outside checks and other cash items 91,222 67,586 100,607 106,333 Redemption fund and due from United States Treasurer. 38,350 35,575 36,264 36,672 United States securities borrowed i 35,710 Other securities borrowed l 381 Other assets 447,001 ! 350,391 344,011 276,749 Total 31,184,198 29,447,933 29,639,259 29,316,478 LIABILITIES. Capital stock paid in 1,799,061 1,850,074 1,858,710 1,867,821 Surplus fund , 1,526,901 1,552,418 1,557,719 1,557,475 Undivided profits, less expenses and taxes paid 794,245 753,169 716,076 667,711 Due to Federal Reserve Banks 21,953 21,882 24,593 25,521 Due to banks, bankers, and trust companies 3,062,304 2,664,847 2,688,096 2,834,645 Certified and cashiers' or treasurers' checks outstanding. 593,389 435,258 563,443 438,336 Demand deposits 14,019,901 13,074,225 13,292,177 13,176,122 Time deposits 6,187,921 6,343,443 6,366,632 6,450,629 United States deposits 316,191 272,561 389,910 306,103 Bills payable with Federal Reserve Banks 1,026,492 828,798 616,557 498,70S Bills payable other than with Federal Reserve Banks.. 208,440 188,459 195,684 156,617 Cash letters of credit and travelers' checks outstanding. 17,901 18,001 25,185 16,41ft Acceptances executed for customers 2 593,708 481,936 418,165 346,555 Acceptances executed by other banks, for account of reporting banks 22,233 13,722 22,245 National bank notes outstanding 693,415 679,083 703,654 716,968 United States Government securities borrowed 3140,451 I 3 130,685 3 100,324 102,675 Other bonds and securities borrowed 3 4,377 I 3 4,086 3 2,830 6,121 Other liabilities 177,548 126,775 105,782 125,810 Total.. 31,184,198 29,447,933 29,639,259 29,316,478 Liability for rediscounts, including those with Federal Reserve Banks 1,894,818 j 1,336,813 1,243, 764 757,639 Ratio of reserve with Federal Reserve Banks to net deposit liability (per cent). 10.0 9.9 9.8 10.5 1 Securities borrowed by State bank and trust company members only. 2 Includes acceptances executed by other banks for account of reporting banks. 3 Does not include bonds and securities borrowed by State bank and trust company members. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRINCIPAL ASSETS AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES SUBMITTING WEEKLY REPORTS TO THE FEDERAL RESERVE BOARD. [Figures for about 800 banks as oflast report date in each month.] [In thousands of dollars.] TOTAL—ALL DISTRICTS. United States securities. Total loa i n n s v a es n t d m d e i n s t c s o . unts and Net demand deposits. Time deposits. Accom R m e o s d e a r t v i e o B n a a n t k F s. ederal 1919 1920 1921 1919 1920 1921 1919 1920 1921 1919 1920 1921 1919 1920 1921 January 2, 547,5501, 844,6501,314,229 14,184,040 16,631, 52616,253,775 9.952,408 11,481,050 10,642, 5991,611,721 2,471, 5692,918, 8491,190,755 1,834,180 1,907,992 February 2, 957, 8591, 747-1611,303,075 14, 487, 72416,671,312 16,099,019 9, 988, 46411, 463, 25210, 494,6291,646,174 2, 524,3932,909, 2451, 473, 8592,142, 857 1, 890, 695 March.. 2, 829, 2541, 548, 0361, 342, 41914, 486,14116, 819, 27015,982,600 10,054, 43811,495, 54910,185,727 1,684,259 2, 584,9592, 932, 4721, 422, 9372,114, 273 1, 764,186 April 2, 972, 8781,680,646 1, 290, 08214, 581, 77816,930, 33515,603, 08610, 209, 75411,463, 74510,138,258 1, 717,8422,619,027 2,938, 4681, 409, 5212,136, 347 1, 522,975 May 2, 860, 9041,684,364 1,261,841 14, 853, 00216,945, 83215,345,265 10, 442, 84711, 561, 38110,153, 3561, 729,6892, 645, 7053, 053, 3451, 485,9742,060,138 1,329, 301 June 2,189, 2521, 560,9291, 373,12111, 675, 26416, 932, 44815,331,143 10, 286,40611, 347, 04110,046, 3981, 756, 9632,691, 8802,933,118 1,350,911 1,945,977 1,215,336 July 2,156, 5681, 503, 0391,189,699 14, 719, 67516, 859,97314,888, 70910, 543,05811,401,052 10,002,061 1, 789, 7742, 705, 8522, 905,2931, 440, 7801,973,034 1,112,515 August 2, 381, 4761, 501, 4821, 243, 87215, 256, 33516, 930, 41814, 759, 21010, 802, 50511,252,428 9, 967, 5471, 923, 4942, 745, 2312, 924, 7011, 411,1372,128,399 955,952 September 2, 242, 9431, 447, 757I, 362, 57415, 677, 22817,140, 24614,957, 25610, 839,15411,160, 537 9, 865, 5991, 994,2162, 786, 8112,925,188 1, 475, 8422,150,910 875,271 October 2,107, 9381,364,616 1, 252, 66316,115, 20017,017,416 14, 729, 25011, 284, 90211,172, 00110,192,114 2,194,156 2, 805,2472,985,968 1, 697,9692,244,262 806, 559 November 1, 979, 8391,391, 4201, 378, 31916,156, 23616, 732, 01214, 764, 51411, 337, 61410, 892,12210, 269,9712, 288,1332, 811,1232,997,931 1, 812, 9092,174,026 683, 461 December 1,929, 2681,391,368 1, 469, 32316, 520, 05516,750,488 14,779, 58211,174, 24910, 941, 84710,174, 4372,302,344 2, 852,2572,998,213 1, 833, 2072,098, 053 698, 221 g W DISTRICT NO. 1—BOSTON. January 140,456 75,336 49, 874 1, 043, 8961,074, 952 1,084,655 708,411 786,060 768, 866 106,333 132, 505 171,921 80, 216 127,101 98,235 February 165, S52 65, 645 52,087 1, 067, 8161,093, 605 1,073,000 685, 824 809, 809 743, 774 109, 843 135,393 166,067 96, 507 151,049 113,936 March 130, 863 53,397 57, 098 1,057, 589 1,083,123 1,070,906 692, 275 780,143 705,606 110,464 137,611 168, 464 94, 413 144, 397 124,060 April 149, 559 72, 746 48, 779 1,084, 993 1,077,615 1, 032,134 715, 746 799, 364 719,774 113, 264 138, 594 170, 945 105,194 110, 631 74,147 May ; 138, 776 70,455 47,637 1, 097, 200 1,108,393 1,031, 716 716, 786 816, 881 730, 446 109,059 138,163 177,660 105, 334 121, 574 69, 865 June 83, 882 62, 429 48, 720 1,060,192 1,105,397 1, 021, 317 712, 582 818,241 702,384 119, 797 140, 780 175,005 105, 516 106, 718 64,447 July 81, 869 54, 838 45,910 1, 046, 355 1, 086,987 1,003,151 737,970 832,429 726, 250 110, 805 140,322 176,423 96, 854 80,667 42, 844 August 92, 291 58, 015 48, 343 1, 022,667 1,085, 915 1,000, 676 742,420 807,473 700,129 111, 405 143, 992 179,103 74, 819 97, 264 54,693 September 85,130 56, 318 56,140 1,033, 489 1,114,126 1,016, 457 733, 869 806, 492 697, 313 112,238 154, 465 182,604 92, 314 101, 830 43,771 October r 69, 938 53, 399 51, 908 1, 051, 691 1,114, 786 1,014, 884 802, 737 832,298 751,160 123, 247 162, 445 179, 974 82, 023 88, 454 31,462 November 72, 572 56, 406 59, 705 1, 052, 260 1,102, 265 1,009, 944 779, 391 782, 234 742, 270 126, 501 159,661 181, 403 124,667 120,906 42, 534 December 83, 899 57, 413 62,073 1,102, 599 1,110, 511 1, 011, 569 767,204 782, 719 731,989 129,141 160, 446 180, 480 150, 658 129, 535 46,347 to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ASSETS AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES SUBMITTING WEEKLY REPORTS TO THE FEDERAL RESERVE Bo ARD—Continued. [In thousands of dollars.] DISTRICT NO. 2—NEW YORK. United States securities. Total loa I n n s v a e n st d m d e i n s t c s o . unts and Net demand deposits. Time deposits. Accom R m es o e d rv at e io B n a a n t k F s. ederal 1919 1920 1921 1919 1920 1921 1919 1920 1921 1919 1920 1921 1919 1920 1921 January 1,066,066 669,114 521,338 5,835, 473 6,361,902 6,114,037 4,607, 734 5,118,606 4,704,026 259,377 392,078 443, 250 523, 729 758,720 873, 478 February 1, 257, 785 653,989 511,698 5,952, 785 6,284, 557 6.022,176 4,622,354 5,076,104 4,623, 462 257,057 390,194 436,614 706, 567 851,650 848,613 March 1,178,947 581,767 527,229 5, 858,313 6,320,984 5,911,471 4,684,975 5,146,672 4, 545,463 270,359 410,810 459,604 606,898 800,377 658,141 April 1,284,516 652, 587 504,990 5,915,390 6, 365, 587 5, 754, 327 4,768, 034 5, 243,462 4, 556,482 277,055 416,439 462,513 537, 321 723,022 557, 851 May 1,139, 323 660,621 485,278 5,981,018 6,385,049 5,618, 033 4,940, 728 5,360,664 4, 570, 871 284, 929 408,318 539,017 638, 733 671, 709 453,528 June 803,181 626,903 602,338 5,998, 218 6,413,606 5,636,648 4, 826,870 5, 219,623 4, 635, 931 283,025 417,491 433,115 523,837 674,144 338,457 July 806,148 615,667 468, 737 5,983, 856 6,383,663 5,393, 871 4, 844, 699 5,170,254 4, 504, 795 319, 855 426,606 415,994 643,373 746,121 333,415 August 928, 721 599,108 496, 727 6,145,938 6,405, 863 5,369, 526 4,912,104 5,016,107 4,465, 258 352, 336 452,118 435,485 626,964 876, 573 289,799 September 980, 992 579,025 538,119 6,466,099 6,477, 226 5,439,669 5,008,384 5,010,977 4,477,486 404,983 468,562 447,295 599,395 806,915 196,225 October 904,418 525,844 512, 871 6, 582, 486 6,410, 823 5,355,481 5,197, 638 4,993,980 4,636,456 425,138 458, 556 460,979 760,965 946, 248 202,314 November 815,641 536,087 604,112 6,313, 360 6, 255,065 5,465,634 5,121, 787 4,883,600 4, 707,914 419,076 449,474 478,679 789, 347 874,332 172, 569 December 707, 991 551, 762 662, 784 6,384, 556 6,340,035 5, 463,307 5,032,001 4, 995,337 4,679,857 392,356 441,378 473,236 735,032 831, 782 178,430 NEW YORK CITY. January 961,945 601,327 460,321 5,281,937 5,738,086 5,376,817 4 233,775 4,665,394 4,209,715 202,723 301,906 277,607 462,357 704,573 825,610 February... 1,140,831 580,949 453,436 5,377,186 5,581,340 5,288,679 4 224,491 4 567,219 4,139 351 198,370 294,819 269,229 645,905 784,403 799,558 A M M p a a r y r i c l h 1 1 1 , , , 0 0 1 2 6 6 3 2 2 , , , 4 2 8 2 4 3 5 5 0 5 5 5 8 8 1 9 1 4 , , , 1 7 5 6 8 3 4 0 5 4 4 4 2 6 4 5 7 5 , , , 5 7 2 7 9 0 4 9 9 5 5 5, , , 4 3 2 4 2 8 1 9 4 , , , 5 7 9 2 7 3 4 7 5 5 5 5 , , , 6 6 6 6 0 5 5 2 3 , , ,4 5 3 4 6 1 9 9 0 5 4 5 , , , 8 0 1 9 1 7 0 9 6 , , 5 4 9 7 4 2 4 1 3 4 4 4 2 5 3 8 9 5 9 4 1 , , , 6 2 0 5 8 5 7 0 8 4 4 4 , , 6 7 8 4 3 2 3 6 6 , , , 5 7 8 7 5 0 4 7 5 4 4 4 , , , 0 0 0 6 8 6 2 6 3 6 3 7 5 9 8 4 0 1 2 2 2 2 1 1 4 1 6 , , , 3 1 7 6 3 6 9 7 5 3 3 3 0 0 0 0 3 1 , , , 0 3 1 1 8 6 6 5 3 3 2 3 7 0 9 6 0 7 , , , 8 3 1 6 8 5 7 7 8 5 4 5 7 7 4 2 0 0 , , , 3 2 0 3 0 0 5 7 8 7 6 6 0 3 6 9 2 3 , , , 5 3 7 9 9 6 0 0 8 4 6 5 0 0 0 5 5 7 , , , 3 3 8 3 9 4 8 0 0 O W June 702, 873 556,694 539, 784 5,453,615 5,693,637 4,909,576 4,464,537 4,705,010 4,159,849 222,041 303,559 270,496 455,384 611,843 283,174 July 721,722 544,674 407,057 5,421,983 5,653,298 4,677, 738 4,448,311 4,664,731 4,033,505 256,574 301,766 251,824 577,403 683,814 284,545 August 834,846 526,542 434,497 5,531,820 5,673,831 4,655,016 4,487,636 4,521,495 4,007,827 271,438 321,554 266,783 557,828 814,059 241,710 September.. 896,206 511, 709 475,933 5,840,702 5,749,347 4,719,669 4,581i079 4,528,3lu 4,018,072 324,793 333,681 278,403 524,873 749,027 150,424 October 822,273 460,020 452,223 5,956,150 5,680,503 4,640,177 4,765,169 4,506,067 4,172 464 343,534 318,231 289,897 687,019 881,607 155,876 November.. 738,285 468,247 540,540 5,685,910 5,528,888 4,749,430 4,685,335 4,399', 615 4,248,487 336,312 310,181 305,862 715,606 803,266 124,992 December.. 636,854 487,908 595, 553 5,764,781 5,614,773 4,746,425 4,589,921 4,505,054 4,216,994 3084 253 298,415 301,517 675,775 765,922 131,279 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3—PHILADELPHIA. January 153,235 103,824 71,981 960,514 967,807 906,437 632,839 654,286 652,317 20,086 26,034 38,621 144,602 181,222 111,353 February... 177,735 97,392 71,264 958,346 979,814 910,850 638,823 651,309 638,028 21,354 25,951 39,096 166,836 205,840 124,526 March 179,870 93,883 77,259 980,259 977,213 918,350 653,426 657, 111 623,764 22,300 26,458 38,951 170,472 196,872 123,395 April 177,769 109,279 72,384 959,767 953,439 894,395 654,734 659,140 630,885 22,016 26,673 41,265 172,601 184,851 106,769 May 189,440 103,282 72,447 1,015,562 956,079 884,246 651,349 673,682 627,875 20,634 32,798 41,417 176,464 166,901 105,686 June 125,065 86,664 77, 836 976,769 945,182 881,132 635,929 662, 888 604,716 20,627 32,981 41,110 189,900 147,432 97,539 July 105,101 74,836 66,674 950,089 939,948 849,154 646,191 666,861 621,124 21,303 33,290 41,687 175,013 140,054 79,827 August 119,014 72,756 72,734 975,255 961,062 830,060 664,273 690,847 608, 790 21,783 37,164 41,207 169,157 135,359 69,328 September.. 123,098 68,727 79,451 988,099 960,812 844,955 663,812 690,209 599,735 22,122 38,895 43,680 169,044 121,028 63,772 October 103,182 64,461 66,321 982,965 942,431 830, 966 675,267 684, 743 619,213 '22,453 39,244 43,854 175,831 114,046 64,051 November.. 94,018 67,288 68,926 997,934 934,891 816,975 666,231 679,899 629,938 22,440 39,755 44,212 166,177 121,595 46,706 December.. 108,642 72,176 75,626 1,018,482 913,785 815,752 655,361 661,765 612,797 22,242 37.029 45,648 184,906 121,943 50,024 DISTRICT NO. 4—CLEVELAND. January 239,411 185,067 135,664 1,319,135 1,478,244 1537,813 784,828 855,135 897,769 280,156 337,095 431,080 82,031 105,682 97,722 February... 283,677 180,789 138,327 1,361,192 1,495,830 1539,856 794644 850,503 889,822 296,360 360,129 432,956 98,286 147,333 97,103 March 253,420 150,395 137,033 1,347,638 1,475,112 1,540,084 790,072 847,452 854,366 294,521 359,828 432,936 86,168 122,864 106,652 April 240,469 153,099 135,310 1,346,366 1,469,708 1,508,792 768,909 864,415 820,858 1298,332 364,226 428,750 94,642 111,700 116,155 May 250,212 156,690 134,506 1,368,996 1,478,767 L487,663 804847 873,743 828,443 294,143 363,999 453,600 87,449 106, 641 102,882 June 224,458 155,016 136,511 1,365,401 1,488,983 I,492,238 780088 867,816 779,440 296,419 365,090 431,140 90,538 104,380 124,727 July 226,286 142,785 128,982 1,375,548 1,487,919 1,469,280 809409 918,246 800,255 |292,345 364,319 429,271 102,312 81,896 112,986 August 235,956 146,517 132,877 1,425,568 1,507,739 I458,894 809; 961 939,331 806,715 296,600 372,350 427,738 113,158 79,598 90,960 September.. 216,990 142,321 144,189 1,434,444 1,506,115 1,476,023 791092 928,816 792,700 299,985 376,942 425,100 116,725 69,566 89,119 October 208,432 136,657 133,435 1,458,882 1,517,108 1,454,167 824113 950,397 801,129 1321,028 382,012 426,310 118,701 68,150 95,613 November.. 195,997 139,264 142,754 1,457,866.1,512,422 1,426,048 821437 921,620 786,349 323,239 381,544 425,150 143,933 81,276 74,462 December.. 196,016 137,617 146,237 1,484,616 1,547,840 1,412,520 803,946 891,407 754,192 332,699 403,930 418,645 147,113 105,509 78,924 DISTRICT No. 5—RICHMOND. January 130,712 97,486 73,775 537,880 616,056 596,908 324,778 362,001 331,243 67,191 99,974 115,889 62,696 68,746 66,162 February... 138,795 90,705 71,741 556,840 610,607 593,988 316,302 362,219 324,365 70,898 100,068 116,341 77,451 74,398 66,520 March 139,950 88,136 80,290 569,069 617,165 603,591 316,700 353,126 317,251 77,838 100,263 117,509 84,414 82,733 68,937 April 147,754 88,880 73,501 572,349 621,702 597,959 320,851 350,211 306,752 79,706 103,278 118,824 84,200 86,489 78,301 May. 153,850 87,970 72,625 598,074 615,208 591,890 311,023 342,064 302,150 79,267 104,923 120,885 90,238 85,984 76,141 June 144,480 83,879 71,333 589,197 615,724 595,287 308,689 335,181 299,560 81,550 104,986 119,581 97,362 82,446 73,991 July 141,245 81,763 71,115 598,527 614,190 589,585 325,603 342,066 301,867 87,677 106,704 121,321 103,602 78,428 72,328 August 125,735 82,139 67,957 585,329 617,528 580,399 333,351 342,195 295,715 93,049 107,614 122,242 81,326 76,824 71,290 September.. 99,422 77,967 77,718 583,466 623,728 594,472 329,535 338,851 288,181 93,641 107,741 121,833 78,005 82,750 71,578 October.... 99,210 76,366 69,282 596,931 618,430 580,757 358,420 339,698 297,648 95,569 107,644 127,516 64,314 76,714 62,933 November.. 97,343 77,030 67,984 608,897 608,152 569,245 374,830 330,956 294,953 96;794 107,963 126,599 62,48S 77,177 56,705 December.. 103,276 78,728 72,571 619,531 614,050 573,007 362,907 331,750 296,832 96,086 108,192 126,591 75,984 75,472 56,524 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRINCIPAL ASSETS AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES SUBMITTING WEEKLY REPORTS TO THE FEDERAL RESERVE to BOARD—Continued. to [In thousands of dollars.] DISTRICT NO. 6—ATLANTA. United States securities. Total loa i n n s v a e n st d m d e i n s t c s o . unts and Net demand deposits. Time deposits. Accom R m es o e d rv at e i o B n a a n t k F s e . deral O 1919 1920 1921 1919 1920 1921 1919 1920 1921 1919 1920 1921 1919 1920 1921 W H January 101,263 82,872 46,562 450,491 562,618 509,165 242,624 311,624 237,302 100,778 126,382 144,603 57,886 69,817 83,774 O February 112,354 76,614 46,801 443,408 559,345 502,223 244,520 303,715 240,051 102,416 132,822 144,164 52,740 77,108 78,855 March 109,515 65,553 44,606 444,817 558,048 484,244 240,144 298,124 229,905 104,708 144,547 143,189 55,696 77,623 69,372 April 116,670 67,550 45,186 448,845 573,926 469,309 241,744 285,741 224,323 112,970 149,090 142,870 56,150 90,613 61,463 w May 126,342 65,874 44,958 466,752 563,367 465,529 244,083 280,902 219,224 116,371 151,421 146,016 49,861 94,099 56,974 June 109,038 56,345 35,226 462,605 557,543 454,394 246,881 269,859 218,148 115,872 152,651 146,907 57,173 88,978 50,626 July 112,105 56,949 33,952 462,269 565,502 446,841 253,144 263,534 212,209 114,766 150,582 143,986 60,878 96,294 52,828 August 113,955 58,281 35,482 478,500 565,267 448,197 253,703 260,890 209,466 116,224 150,421 142,024 64,915 104,487 55,109 September 96,307 56,114 35,481 497,083 580,078 461,628 257,323 258,455 208,776 117,818 151,318 139,440 76,149 118,556 64,338 October 85,759 53,178 32,976 532,687 568,840 455,586 275,707 246,026 215,245 119,843 148,183 141,306 85,069 120,357 56,523 November 81,369 53,222 33,770 522,720 557,992 447,598 289,997 240,582 213,630 118,743 150,133 140,698 79,204 116,686 47,682 December 89,911 50,127 32,602 542,630 552,573 445,093 305,490 246,999 213,528 121,150 147,260 140,463 73,043 103,693 45,664 DISTRICT NO. 7—CHICAGO. January.. 294,311 240,939 145,951 1,734,955 2,372,877 I 2,368,274 1,168,571 1,461,700 1,323,597 405,638 578,577 660,152 60,817 225,089 280,149 February 333,634 230,047 139,659 1,810,840 2,423,039 2,357,342 1,199,664 1,475,704 1,317,378 414,249 588,217 659,254 78,744 298,559 285,620 March 337,152 192,373 143,424 1,848,159 2,520,078 2,367,417 1,185,086 1,482,861 1,257,524 423,634 604,707 658,010 108,371 345,403 314,056 M Ap ay ril 3 3 5 3 2 4 , , 5 6 9 6 7 0 2 20 0 6 6 , , 0 2 4 3 0 4 1 13 3 5 7 , , 8 2 0 9 7 1 1 1 , ,9 8 0 2 6 9 , , 2 8 4 8 2 1 2 2, , 5 5 3 4 6 6 , , 5 6 6 4 4 5 2 2 , , 2 3 6 1 7 3 , , 2 2 4 7 4 0 1 1 , , 2 2 2 4 1 6, , 8 3 5 6 4 8 1 1 , , 4 4 4 3 7 0 , , 1 1 0 3 2 8 1 1 , , 2 2 6 8 4 7 , , 9 1 0 0 7 8 4 4 2 3 8 4 , , 9 1 7 7 9 1 6 6 2 13 0 , , 3 1 1 6 4 2 6 65 5 6 3 , , 6 7 4 9 2 1 1 9 1 4 7 , , 9 9 8 9 7 5 3 3 8 6 8 4 , ,7 3 3 5 9 2 2 2 6 1 0 0 , , 9 6 * 8 6 8 o June 299,543 188,292 134,395 1,875,950 2,538,959 2,262,177 1,231,825 1,391,245 1,239,107 443,361 624,181 660,430 102,997 368,636 218,954 July 307,976 177,914 119,990 1,905,540 2,508,063 2,204,793 1,303,903 1,423,736 1,267,405 440,151 624,945 653,296 98,155 360,197 185,412 August... 315,704 183,549 123,953 1,941,348 2,501,182 2,148,829 1,318,792 1,403,078 1,299,128 456,362 626,366 652,397 129,666 357,458 121,249 September 230,174 171,020 143,673 1,946,643 2,540,589 2,178,663 1,294,287 1,363.590 1,254,017 453,758 629,214 649,618 110,181 406,941 131,800 October 229,001 162,714 120,922 1,980,402 2,507,929 2,120,829 1,320,248 1,370,489 1,279,535 464,404 634,764 656,738 138,531 367,775 100,711 November 241,246 162,810 131,785 2,217,779 2,467,897 2,107,046 1,380,974 1,309,283 1,262,766 548,195 640,078 662,486 187,048 367,808 85,803 December 236,154 152,477 138,288 2,298,093 2,449,980 2,116,076 1,366,985 1,309,934 1,246,541 560,265 651,555 655,772 208,009 357,276 104,890 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CITY OF CHICAGO. January 144,479 91, 510 40, 566 1, 039, 463 1,466,260 1,423, 514 788,192 987,676 930,616 155,219 264,453 308,677 22,087 144, 596 152, 725 February... 168, 244 84,427 39, 550 1,076, 037 1,479,034 1, 425,997 817, 851 994.088 931,481 158, 659 268,119 309,843 38,091 185,932 156,391 March...... 178,489 75, 623 44,926 1,130,193 1,562,241 1, 436,905 807, 712 993,001 885,903 162, 533 270, 823 313,991 67,442 244, 843 182,000 A M p a r y il . . . . .; ... . .. 1 1 7 7 4 7, , 1 1 7 0 1 4 7 7 6 4 , , 4 0 5 3 6 4 4 46 4 , , 5 5 2 0 6 6 1 1 , , 1 1 0 5 2 1 , , 8 5 6 5 3 3 1 1 , , 5 54 5 0 9 , , 2 4 7 8 9 8 1 1 , , 3 40 7 0 6 , , 6 8 5 0 6 7 8 8 2 3 3 5 , , 0 9 2 2 5 3 9 9 7 7 6 3 , , 9 4 6 8 9 5 9 8 0 9 5 1 , , 1 3 1 0 6 2 1 16 6 4 4 , , 1 2 8 9 7 4 2 27 7 7 3 , , 5 7 5 6 8 3 3 3 1 1 4 5 , , 3 5 7 1 4 7 5 70 5 , , 5 5 5 7 7 2 2 2 2 5 4 6 , , 4 7 8 3 6 0 1 10 3 8 9 , , 7 0 8 4 5 8 June 142,117 63,073 47, 471 1,118,049 1, 549,094 1, 377, 710 821, 328 951,116 864, 895 168, 498 281,660 318, 288 63,690 238, 576 122,684 July 149,110 58, 775 38,965 1,118,645 1, 526, 769 1, 336,098 864,434 972.089 874, 403 166, 424 282,679 312, 588 53,745 219,696 103,519 August 154, 897 52, 873 38,947 1,139,483 1, 508,092 1, 288, 204 877,521 956,278 901, 761 168,625 283, 528 311,567 62, 245 216,300 51,133 September.. 100, 864 46, 410 54,220 1,137,067 1, 536,940 1,318, 502 858, 834 930,933 874, 529 169, 831 285, 883 309,947 60,953 256, 795 57, 785 October 97, 224 46, 824 39,907 1,155, 439 1, 508, 859 1, 279, 285 878,183 942,140 892, 790 174, 440 291,110 312, 386 68, 4] 7 224, 303 40,395 November.. 102,315 49, 244 48, 534 1, 373,450 1,490,293 1, 274,673 944,695 909,917 875,611 249,201 298,592 316,239 117,076 218,571 32,631 December.. 97, 544 44, 538 53, 392 1, 433, 773 1, 489,697 1, 287, 414 937,172 916,187 863,050 257, 760 310, 961 313,413 138, 535 219,323 49, 838 I DISTRICT NO. 8—ST. LOUIS. January 92, 556 58,323 35,108 504,546 624,797 604,470 300,626 368, 850 329,282 92,679 117,768 141,394 42,906 75,291 70,014 February 107,427 53,590 33,927 515,213 626,992 593,495 302,473 360,597 325,242 93,531 118, 801 144,231 47,944 92,340 62,126 March 104,376 47,619 33,866 529, 857 638,793 578, 306 296,373 356,631 308, 782 95,457 120,321 143,336 59,429 99,675 65,671 April 108, 341 46,700 32, 299 534,258 644,974 565, 520 297,449 334,290 309,099 98,076 122,656 142, 839 65,133 116,339 50, 863 May 101,583 42,196 31,707 521,978 634,819 554, 581 285, 751 311,391 299,108 97,797 123,717 143,582 46,446 121,303 49,659 June I 83,166 38, 330 31,037 509,455 615,408 563,046 285, 774 320,436 285,818 97,632 124,484 142, 838 41, 324 97,329 55,778 July 73,105 38,271 28, 803 511,099 609,394 544,715 309,047 318,248 286,915 98,653 124, 364 142,558 42,116 103,525 53, 354 August 77, 759 38,240 29, 878 536,767 611,396 536,600 330,120 321,455 283, 343 101,004 124,260 144,720 37,639 107,500 44, 882 September 66,624 36, 835 36,245 537,390 602,043 545,297 313,603 307,995 279,108 101,720 126,016 145,679 61, 295 103,636 45,153 October 59,669 36, 556 30,010 538, 845 603,622 536,911 326,012 298,192 295,661 105, 328 129, 235 148, 356 51,914 114,539 37,307 November 48,412 37,072 30,619 551, 249 584,738 539, 726 338,631 303,632 291, 895 109,459 130, 781 150,077 50,080 93,850 41, 065 December 59, 708 37,499 33,348 591,306 576,532 549, 548 352, 884 310, 887 300,497 112,015 130,927 150, 427 54, 395 77,643 40, 933 i DISTRICT NO 9.—MINNEAPOLIS. January 48, 313 35,888 18, 864 293, 893 372,994 331, 562 223,913 224,463 184, 405 55,670 61, 354 70,026 2,366 53,087 39,018 February... 59,188 31, 538 18, 872 296,254 378,963 321,261 216, 813 228, 376 186,142 52, 577 62, 241 68,127 1,839 51,263 33,194 March 60, 798 28,224 21,171 303,942 376,735 324,056 223,442 237,286 185,240 54,318 64,536 69,778 5,475 42,563 32,272 April 63,911 26,585 20,634 315,089 379,978 313, 877 213,107 209,317 169, 907 53, 393 64,162 69, 716 29,131 66,978 34,767 May 63,176 27, 813 20, 514 315,620 375,664 314, 597 224,400 210, 730 165,443 55, 563 63, 312 71,463 22, 887 70, 512 35,980 June 45,276 25,026 18, 374 294,222 366,757 319,127 230,192 200,273 171, 720 56, 393 64, 327 72, 579 9,425 63,242 38,785 July 45,302 20, 872 17,289 312,289 354,191 313,499 244,342 201,327 172,786 56, 582 64,102 70,664 7,406 56,228 37,692 August 55,265 21,013 17, 829 343, 527 355,796 319, 705 262, 458 196,732 172, 777 56,466 63,963 68, 526 11,098 58,930 37,105 September.. 49,425 20, 068 22,692 363,552 353,827 328,614 268,768 186,971 168, 823 58,316 63,996 67,672 23, 819 68,180 36,225 October 49,026 20,240 19,090 377,411 366,733 316,150 265, 884 196, 702 171, 733 58,691 68, 733 69,213 42, 807 74/563 34,361 November.. 42,964 20,371 20,079 370,622 310,488 255,242 194, 807 179,833 59,214 68, 542 71, 808 46,413 69,697 21,319 December.. 37,310 20,301 21, 322 380, 865 350,925 302, 717 238, 711 185,745 172, 473 59,924 70, 880 76,678 58, 744 56,062 13,775 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRINCIPAL ASSETS AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES SUBMITTING WEEKLY REPORTS TO THE FEDERAL RERERVE to BOARD—Continued. [In thousands of dollars.] DISTRICT NO. 10— KANSAS CITY. United States securies. Total loa i n n s v e a s n t d m d e i n s t c s o . unts and Net demand deposits. Time deposits. Accom R m es o e d r a v t e io B n a a n t k s F . ederal 1919 1920 1921 1919 1920 1921 1919 1920 1921 1919 1920 1921 1919 1920 1921 Tanuary 74,967 59,230 45,806 540,277 670,342 612,434 387,091 464,821 398,423 66,263 88,481 99,784 43,072 68,653 66,352 February 85,792 54,350 47,182 557,545 684,193 604,194 398,344 485,817 405, 915 65,113 91,300 101,529 46,782 75,815 60,926 March./. 90,874 49,816 44,740 569, 500 694,540 596,345 387, 716 462,165 384,085 66,558 94,479 101,240 57,941 86,895 67,829 April 94,784 52,185 42,050 581,182 698,807 574,805 396,041 427,953 373,081 68,516 96,907 104,955 73 174 105,034 59,014 w May 97,184 54,615 42,872 585,392 676,180 568,599 398, 221 424,738 370,911 72,088 97,787 104, 330 65,302 98,299 49,264 June 77,829 50,164 44,353 585,091 665,471 563,428 408,303 410,020 367, 988 75,367 98,990 106,883 68, 788 91,070 47, 401 July 71,763 53,868 42,442 597,493 670, 784 558, 734 423,618 412,461 365,994 76,370 96,631 106,916 58, 906 94,836 43,087 August 87,399 54,813 43,090 629,334 673,519 542,953 462,670 417,301 373,680 79,130 97, 238 102,525 44,872 94,745 36,324 September 77,462 55, 753 42,556 636,090 707,640 543,453 449,514 412,468 354, 240 85,254 97,457 100,066 68,084 112,224 43,612 October 79,010 50,343 42,4«6 665,288 690,119 543, 302 452, 755 391,723 352, 503 84,545 98,213 103, 732 84, 864 116,515 43, 741 November 68,603 50,338 42,599 668,681 668,671 554, 755 467, 785 394,911 363,223 S3, 531 99,066 104,520 73,693 99, 959 45,907 December 70,362 51,662 41,905 676,988 647,443 545,551 454,082 393,621 371,784 85,782 100,462 106,560 78,466 94,760 35,794 w DISTRICT NO. 11—DALLAS. I January... 55,202 71,723 42,510 250,928 343,129 331,890 153,844 250,688 210,912 25,805 41,925 ! 59,305 31,498 31,615 33,401 February.. 66,592 65,586 i 43,318 257,421 347,470 325, 524 153, 293 255, 252 209,337 28,457 43.609 I 62,009 34,900 i 31,774 29,163 March 69,209 58,230 | 41,269 255,611 352,118 320,065 154,888 254,789 202,611 28 *83 44", 783 | 59, 868 30.598 32,628 27,571 April 72,604 59,707 i 37, 086 264, 754 357,907 312,357 162,072 235,431 197,846 28, 893 44, 810 ! 60, 577 34', 228 : 50, 739 22,485 w May 79,689 61,394 35, 803 271,956 358, 784 310,164 168, 171 230,948 197,744 28, 978 48,258 I 61,359 32,734 51,341 19.515 June 60, 490 50, 293 38, 056 253,771 338,349 302,457 171,721 223,285 188, 267 29,521 49,279 61,360 22.459 31,757 18,962 o July 66,039 49,804 37, 080 260,989 351,244 301,080 180,902 219,866 184,053 30,386 54,161 ! 60,466 16,777 i 41,992 24,353 August 83,308 49, 973 38,600 282, 604 358 140 298,654 194,344 224,602 18!, 128 SO, 552 55,194 ! 60, 779 18,424 43, 563 22,070 S O e c p t t o e b m e b r e .. r . . 7 5 7 8 , , 1 9 0 4 6 6 4 5 8 0 , ,0 8 8 5 0 4 4 39 1 , , 1 1 9 9 4 8 2 29 9 0 9 , , 4 5 3 5 9 3 3 3 6 6 8 4 , , 9 7 1 5 4 8 3 3 0 0 0 1 , , 4 4 5 8 5 0 2 1 0 9 9 2 , , 2 54 4 1 3 2 2 2 2 4 4, , 3 1 7 7 3 2 1 18 8 9 2 , , 9 8 8 0 9 8 3 3 0 1 , , 9 5 4 8 6 2 5 5 6 5, , 0 3 2 0 1 2 | ! 6 59 0 ; , 0 8 8 2 7 9 2 2 8 5 , , 7 20 2 2 0 i I 4 50 7 , , 4 6 7 6 6 7 2 2 2 2 ; , 5 7 7 3 9 6 November. 60,623 50,664 39, 533 313,316 357, 584 293,987 236,932 217,448 187,934 33, 338 57,693 ! 60,353 19,939 I 44,861 16, 705 December. 78,600 46,137 39, 299 337, 873 343, 949 294,014 240,622 215, 259 192,069 35, 869 58,229 | 58.995 10,936 I 34,631 12,687 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12—SAN FRANCISCO. January 151,058 164, 848 126, 796 712,052 1.185. 808 1,256,130 417,149 622,816 604,457 131,745 469,396 542,824 58,936 69,157 88,334 February 168, 928 146,916 128,199 710,064 1.186, 897 1,255,110 415,410 603,847 591,113 134,319 475, 668 538, 857 65,263 85,728 90,113 March 174, 280 138,643 134,434 721,387 1, 205.361 1,267,765 429,341 619,189 571,130 135,919 476,616 539, 587 63,062 82,243 106,230 April 181,841 145,094 140,572 728,904 1,240,047 1,266,341 449,699 607,319 564,344 136,642 478, 878 541,423 62, 760 101,599 100,174 May 168, 732 147,414 137,687 724,212 1,256,958 1,251,003 450, 634 605, 500 554,033 136,689 492,847 537,374 52, 531 107,036 99,119 June 132, 844 137, 588 134,942 704,393 1,281,069 1,239, 892 447,552 628,174 553,319 137,399 516,640 542,170 41,592 89, 845 85,669 July 119,629 135,472 128,725 715,621 1, 288,088 1,214,006 464,228 632,024 558,408 140', 881 519,826 542,711 35,388 92,796 74,389 August 146,369 187,078 136,402 889. 498 1,287,011 1,224,717 518,309 632,417 571,418 208,583 514,551 547,955 39,099 96,098 63,143 September 140,213 134,755 145,116 900; 320 1,309,148 1 226,545 536,724 631,340 562,412 213,435 517,184 542,372 52,111 111,617 66,942 October 161,347 134,778 134,184 1,048,173 1,307,837 1,219,762 576,580 643,581 581,842 342,328 519,916 547,903 67,748 106,425 54,964 November 161,051 140,868 136,453 1,081,552 1,315,469 1,223,068 604,377 633,150 609,266 347,603 526,433 551,946 69, 920 105,879 32,004 December 157,399 135,466 143,268 1,082,516 1,302,855 1,250,428 594,056 616,424 601, 878 354, 815 541, 969 564,718 55,921 109,747 34, 229 H i to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

276 REPORT OF THE FEDERAL RESERVE BOAKD. DEBITS TO INDIVIDUAL ACCOUNTS. DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING HOUSE BANKS IN 141 OF THE COUNTRY'S LEADING CLEARING HOUSE CENTERS, BY MONTHS. SUMMARY BY FEDERAL RESERVE DISTRICTS. [In millions of dollars.] Total. District No. 1—Boston. 1919 1920 1921 1919 1920 1921 January 34, 438 44, 727 37, 560 1,652 2,199 1,701 February. 27,884 35, 281 29, 357 1,305 1,703 1,338 March 31, 725 42,835 33, 487 1, 515 2,008 1,517 April . 32,270 41, 057 31, 812 1, 460 2,029 1,487 Mav 36,555 38,695 32,110 1,664 1,971 1,493 June. 38, 675 39, 778 33,172 1,857 1,975 1,508 July 40, 490 39, 299 31,088 1,929 2,004 1,428 August 37, 458 35, 783 29, 719 1,684 1,694 1,309 September 38,089 36, 861 31,227 1,682 1,795 1,335 October 43,881 40, 207 33, 853 2,125 1,985 1,589 November .... 41, 969 39,165 32,997 2,031 1, 876 1,586 December 45, 916 42, 400 37, 542 2,321 1,951 1,642 Total 449,350 476,088 393,924 21,225 23,188 17,933 District No. 2—New York. District No. 3—Philadelphia. 1919 1920 1921 1919 1920 1921 January 18,683 24, 320 20,666 1,581 1,978 1,679 February 15,052 18, 607 15,646 1,275 1, 586 1,392 March .. 17,189 22, 919 17,939 1,513 1,892 1,616 April 17, 859 21,991 16,951 1,449 1,875 1,582 Mav 20,905 20, 254 17,774 1,563 1,787 1, 503 June 22,169 20, 497 18, 357 1,660 1,909 1,623 July 23,012 19, 791 16,909 1,719 1,857 1,524 August 20, 826 18, 006 15,683 1, 598 1,773 1,408 September 21,011 18, 237 16,617 1,698 1,746 1,501 October 24, 845 20, 818 18,171 1,801 1, 875 1,582 November 23, 922 20, 817 18,019 1,682 1,818 1,514 December 25, 532 23,118 21,179 1,957 1, 996 1,766 Total 251, 005 249, 375 213, 911 19, 496 22, 092 18,690 District No. 4—Cleveland. District No. 5—Richmond. 1919 1920 1921 1919 1920 1921 January 1,868 2, 335 2,236 664 914 737 February.. .. 1,533 1,942 1, 755 549 730 600 March 1,796 2, 329 1,870 574 827 678 April 1,813 2, 332 1,840 594 816 645 Mav 1,838 2,167 1,716 638 794 634 j une 2,082 2, 412 1,753 737 817 676 July- 2,146 2, 459 1,621 778 823 661 August .. 1,948 2,163 1, 521 744 742 676 September 2,044 2,261 1, 585 736 742 668 October. 2,146 2,189 1,692 864 806 744 November 1,982 2,291 1,643 829 783 724 December 2,365 2,536 1,873 904 841 794 Total 23, 559 27, 416 21,105 8,611 9,635 8,237 District No. 6—Atlanta. District No. 7—Chicago. 1919 1920 1921 1919 1920 1921 January . .. 910 1,300 895 4,022 5,162 4,322 February 735 1,019 741 3,314 4,300 3,513 March 782 1,173 813 3,711 5,363 3,993 April 773 1,143 770 3,728 4,910 3,820 May 866 1,073 725 4,069 4,791 3,766 June 890 1,051 729 4,293 5,073 3,827 July 899 1,053 735 4,535 5,234 3,782 August 855 9f9 704 4,393 4,733 3,874 September 900 1,010 797 4,445 4,971 3,848 October 1,170 1,046 858 4,756 5,086 4,069 November ... 1,116 985 785 4,580 4,558 3,827 December 1,243 990 831 5,062 4,885 4,195 Total . .. 11,139 12, 812 9,383 50,908 59,066 46,836 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEBITS TO INDIVIDUAL ACCOUNTS. 277 DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING HOUSE BANKS IN 141 OF THE COUNTRY'S LEADING CLEARING HOUSE CENTERS, BY MONTHS—Continued. SUMMARY BY FEDERAL RESERVE DISTRICTS—Continued. [In millions of dollars.] District No. 8—StLouis. District No. 9—Minneapolis. 1" | 1919 1920 1921 1919 1920 1921 January. 1,027 ' 1,224 881 702 722 581 February . 837 1,007 738 465 585 462 March 875 1,115 787 570 683 514 April 869 1,0 4 747 615 676 521 May 899 1,002 747 628 671 503 June 954 1,011 768 609 675 552 July 1,031 987 722 631 687 496 August 934 916 702 632 636 534 Seote nber 927 957 757 762 780 611 October 1,073 1,007 862 803 864 618 Nove nber 1,018 927 799 707 815 539 December 1,138 981 867 786 734 572 Total 11, 580 12,188 9,377 7,910 8,528 6,503 District No. 10—Kansas City. District No. 11—Dallas. 1919 1920 1921 1919 1920 1921 January...... . 1,156 1,479 1,155 467 699 551 February 999 1,230 941 374 548 466 March 1,130 1,452 1,067 40 > 628 496 April 1,095 1,314 1,006 414 595 443 May 1,210 1,336 953 480 581 437 June 1, 147 1,351 993 515 583 449 July 1,317 1,324 993 527 579 423 August 1,343 1, 326 1,025 4 4) 568 441 September 1,282 1,389 1,022 527 631 515 October 1,346 1,418 1,008 655 691 562 November 1,312 1,337 966 658 615 530 December 1,429 1,267 992 727 618 580 Total 14, 766 16, 223 12,121 6, 248 7, 339 5,893 District No. 12—San Francisco. 1921 January... 1,708 2,395 2,156 February.. 1,446 2, 24 1,765 March 1,665 2,448 2,197 April 1,601 2,322 2,000 May 1,795 2,265 1,859 June 1,762 2,424 1,937 July 1,966 2,501 1,794 August 2,002 2,257 1,842 September. 2,075 2,342 1,971 October... 2,297 2,422 2,098 November. 2,132 2,343 2,065 December.. 2,454 2,483 2,251 Total 22,903 28, 226 23, 935 85227—22 19 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

278 REPORT OF THE FEDERAL RESERVE BOARD. DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS. DATA FOR EACH REPORTING CENTER, BY MONTHS. [In millions of dollars]. Bangor, Me. Boston, Mass. 1919 1920 1921 1919 1920 1921 J F a e n b u r a u r a y ry 1 1 2 0 1 1 5 1 * 1 1 6 4 1,1 9 4 2 4 1 1 1 , , 5 1 2 7 4 6 1,1 9 6 0 5 9 March.. 11 13 15 1,069 1,392 1,038 April 11 18 16 999 1,389 1,002 May . 14 15 15 1,149 1,335 1,024 June 12 17 17 1,333 1,343 1 017 July 13 17 16 1,394 1,350 954 12 16 15 1,192 1,143 884 September 12 17 14 1,158 1,220 881 October 15 19 17 1,497 1,331 1,066 November 13 16 15 1,443 1,289 1,091 December 14 19 17 1,643 1,337 1,119 Total 149 193 187 14,942 15,829 12,150 Fall River, Mass. Hartford, Conn. 1919 1920 1921 1919 1920 1921 January . 29 47 27 86 117 102 February 23 37 24 66 92 81 March 27 44 25 83 109 90 27 42 24 89 113 97 May 37 45 23 96 108 85 June 39 43 24 96 102 9a July 36 40 24 100 117 95 August . 33 35 23 85 93 80 33 32 28 96 111 87 October 44 36 34 110 113 90 November 53 36 34 89 102 88 December 50 33 28 106 115 100 Total 431 470 318 1,102 1,292 1,085. Holyoke, Mass. ]Lowell, Mass. 1919 1920 1921 1919 1920 1921 January 13 20 15 22 25 21 11 18 11 17 20 16 March 12 16 13 19 24 18 April 11 18 13 18 26 19 Mav 12 19 12 21 27 19 June 14 19 13 23 27 20 July 16 20 12 23 .27 18 August 14 18 11 22 25 18 September 15 17 12 21 23 17 19 13 24 26 22 November 17 19 14 28 26 22 December 18 16 13 32 24 21 Total 170 219 152 270 .300 23a Manchester, N. H. New Bedford, Mass. 1919 1920 1921 1919 1920 1921 18 27 40 24 16 22 33 22. 18 20 24 40 23 April. 23 19 27 43 23 May 21 19 29 41 24 23 20 28 40 26 July 26 19 29 38 25 21 19 29 35 24 20 18 31 33 26 October 22 20 36 35 30 23 19 41 31 31 25 25 44 28 30 Total 232 367 437 308 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEBITS TO INDIVIDUAL, ACCOUNTS. 279 DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. [In millions of dollars.] New Haven, Conn. Portland, Me. 1919 1920 1921 1919 1920 1921 January .. 78 92 79 35 30- February 58 70 65 27 32: March 65 86 74 April . 71 85 72 37 32 May . . . .. 71 88 72 36 30 June 67 87 72 30 July 72 95 73 39 29* August . 71 81 67 38 31 September . 71 80 65 40 31 October 81 90 72 46 35- November 73 84 69 40 31 December 81 86 75 42 33- Total 859 1,024 855 452 38T Providence, R.I. Springfield, Mass. 1919 1920 1921 1919 1920 1921 January 141 198 151 79 65< February 102 148 117 65 53 March 118 175 133 76 60 April 125 179 132 74 55 May 137 179 131 71 54 June 144 179 138 77 1 60 July 146 177 129 80 52. August . 131 140 115 67 50 September 142 153 124 69 52. October 177 189 155 76 63 N o vemb er 161 162 138 78 62 December 208 172 143 71 60 Total 1,732 2,051 1,606 S6o 686 Waterbury, Conn. Worcester, Mass. 1919 1920 1921 1919 1920 1921 January ... 32 35 28 69 84 74* Februarv - ........ 25 30 21 50 67 57 March 26 26 24 61 82 April 27 32 25 55 84 64 May . .. 28 32 25 70 84 June 30 32 26 71 85 65 July 30 33 23 70 59 Aucust - ... 29 30 18 66 79 54 SpDtember 33 34 22 69 75 57 October 31 38 24 93 89 65 November .... . 35 32 24 79 81 61 December 37 37 '28 87 83 6g Total 363 391 288 840 982 751- Albany, N. Y. Binghamton, N. Y. 1919 1920 1921 1919 1920 1921 88 92 109 13 19 18 February . . 69 90 93 11 15 14, March 77 90 120 12 19 IT April 95 113 120 14 20 17 May . 112 112 149 15 16- 93 106 120 15 21 16 July 96 110 101 16 21 17 August 74 93 82 15 17 1$ September 81 89 81 15 19 15 October 93 89 84 16 17 November 69 85 84 16 18 16 December 100 100 103 18 20 18 Total 1,047 1,169 1,246 176 229 197 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

280 REPORT OF THE FEDERAL RESERVE BOARD, DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. [In millions of dollars.] Buffalo, N. Y. New York, N. Y. 1919 ; 1920 I 1921 1919 1920 1921 January 268 : 327 281 18,119 23, 636 20, 033 M Fe a b rc r h uary.. 2 2 0 3 1 0 l ; 2 2 5 9 1 0 2 2 2 4 6 3 1 1 4 6 , , 6 6 1 9 7 8 2 1 2 8 , , 2 05 8 3 5 1 17 5 , , 1 3 3 5 0 3 April 247 '' 287 252 17,323 21, 320 16, 349 May 259 i 299 239 20, 330 19, 581 17,171 June 2S3 i 303 247 21, 570 19,806 17, 755 July 271 ' 337 249 22, 427 19, 063 16, 340 August 288 ! 291 222 20, 276 17, 371 15,186 September. 264 I 291 226 20, 446 17, 600 16,102 October 287 i 319 255 24, 226 20,137 17, 610 N D o ec v e e m m b b e e r r . . . 2 3 7 0 3 8 i 3 3 0 2 5 6 2 2 3 5 0 9 2 24 3 , , 3 8 5 6 1 0 2 22 0 , , 1 4 7 0 1 8 2 1 0 7 , , 4 5 9 7 2 5 Total 3,159 3, 626 2,929 244,243 I 241, 431 207, 096 j Passaic, N. J Rochester, N. Y. 1919 1920 1921 1919 1920 I 1921 January 16 111 145 j 138 February.. 13 ; 92 115 112 March 12 i 105 141 126 April 14 l 112 146 S 132 May 16 : 119 142 j 118 June 16 135 156 137 July 16 125 147 j 122 August 17 ! 117 134 108 September. 19 i 122 138 I 119 October 23 I 132 144 ! 125 November. 22 ! 123 140 I 117 December.. 27 144 163 ! 137 Total 284 259 1, 437 1,711 1,491 yTacuse,N. Y. \ Altoona, Pa. j 1919 1920 1921 | 1919 1920 1921 January 68 77 67 11 14 15 February 49 53 ; 9 11 12 March 54 69 I 60 ; 11 15 14 April 53 81 I 60 ' 11 15 14 May - - 54 76 60 13 14 13 June . 57 80 59 ; 13 15 13 July 62 88 57 13 13 13 60 77 49 15 12 13 September 64 76 52 : 13 15 12 October 68 86 58 15 16 13 November 67 7ft 58 ' 14 14 12 December 75 78 60 : 14 17 14 Total 731 j 925 693 | 152 171 158 i Chester, Pa. Lancaster, Pa 1919 1920 1921 1919 1920 1921 January 22 23 22 17 25 23 February 18 19 19 15 20 19 March. 19 23 21 23 29 26 April 17 24 20 24 38 33 Mav 20 23 18 21 24 20 June.. 18 24 19 20 27 21 JUiV 18 25 18 20 27 18 August . ... 19 23 16 20 22 18 September 19 24 17 21 25 19 October 19 26 19 25 27 22 November 20 23 10 22 24 20 Der ember. 22 23 19 24 23 22 Total . . 231 280 224 252 311 261 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEBITS TO INDIVIDUAL ACCOUNTS. 281 DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. fin millions of dollars.] Philadelphia, Pa. Scranton, Pa. 1919 1920 1921 1919 1920 1921 January 1 347 1 678 1 389 54 65 68 February.... 1 069 1 333 1,140 44 55 60 March. 1 287 1 596 1 332 46 f)O 66 April .. . 1,218 1 563 1,298 48 66 63 May . 1 314 1 501 1 243 51 61 65 June... ... 1,411 1,603 1.347 5? 67 70 July 1,468 1,553 1,258 55 68 64 August . 1 354 1 495 1 155 51 fi9 62 September.. 1,419 1,453 1,242 56 64 64 October 1,516 1,556 1,313 61 78 65 November 1 415 1 524 1 2'i3 61 68 62 December. 1,653 1,662 1,477 62 72 70 Total.. . 16,471 18 518 15,457 641 788 779 Wilkes-Barre, Pa. January... February.. March April May June July August September October... November December. Tota January... February.. March..!!.. April May June July August September October... November. December. Tota: January | 13 February ! 11 March..' ! 15 April | 16 May i 10 June ! 14 July i 14 August | 14 September i 15 October j 18 November j 16 De ember [ 19 Total I 181 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

282 REPORT OF THE FEDERAL RESERVE BOARD. DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. [In millions of dollars.] Cincinnati, Ohio. Cleveland, Ohio. 1 1919 M920 11921 1919 1920 1921 Januarv 249 291 319 588 805 735 February 202 244 226 448 630 472 March. 229 287 286 564 758 556 April 233 276 278 620 795 580 May 230 250 245 590 699 521 June. 241 289 261 685 78(5 521 July 257 299 252 751 854 486 August 232 261 238 650 735 455 September 269 282 249 700 748 481 October 234 260 272 727 723 491 November 248 2fi8 255 687 729 519 December 311 326 308 826 827 605 Total 2,935 3,343 3,189 7,836 9,089 6,422 Columbus, Ohio. Dayton, Ohio. 1919 1920 1921 1919 1920 1921 January... 100 137 130 51 • 58 52 February 88 114 104 42 50 47 March . 105 124 124 47 57 57 April 114 130 133 43 55 May.... 111 116 112 52 52 51 June 121 140 122 52 53 54 July. 132 135 121 57 56 56 August 123 127 109 54 51 58 September 121 130 119 50 49 55 October. 130 118 116 52 45 56 November 114 125 107 49 49 55 December 138 * 155 128 55 49 59 Total 1,397 1,551 1,425 604 623 655 Erie, Pa. Greensburg, Pa. 1919 1920 1921 1919 1920 1921 January 29 32 30 12 23 February 24 26 24 10 15 March 27 34 28 9 20 April 26 33 27 9 20 17 May.. 27 34 26 11 19 17 June 27 37 27 11 24 18 July 28 36 25 17 30 19 August. .. . .. 29 35 24 20 28 17 September 29 36 26 21 27 20 October 31 32 26 28 26 19 November 28 35 24 17 23 15 December 32 36 27 20 28 19 Total 337 406 314 185 281 219 Lexington, Ky. Oil City, Pa. 1919 1920 1921 1919 1920 1921 January.... . .. 41 55 22 12 13 15 February 39 47 23 9 9 i 12 March 32 43 27 10 14 ! 12 April 20 25 19 12 14 : 11 May 21 22 15 14 13 ! 10 June.. 19 21 15 14 14 i 10 July 18 23 15 12 15 9 August 21 20 15 12 14'' 8 September 21 20 14 11 16 8 October 20 19 16 13 14 10 November 21 19 15 10 16 10 December 41 20 19 13 18 12 Total 314 334 215 142 170 127 1 Figures for 1921 not comparable with those for preceding years owing to an increase in January, 1921, Digitized foirn F tRheA nSuEmRbe r of reporting banks from 12 to 23. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEBITS TO INDIVIDUAL ACCOUNTS. 283 DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued: fin millions of dollars.] Pittsburgh, Pa. Springfield, Ohio. 1919 1920 1921 1919 1920 1921 January 747 835 923 14 17 19 February 636 728 822 11 14 15 March 727 905 771 13 18 20 April 689 858 719 14 15 18 May 701 833 703 13 14 16 June 826 934 718 14 16 16 July 782 920 615 15 18 17 August 705 803 591 15 15 15 September 743 885 605 15 15 15 October. . . . ... 795 891 688 15 14 15 November 731 970 638 14 13 13 December 873 1,051 704 17 18 15 Total 8,955 10,613 8,497 170 187 194 Toledo, Ohio. Wheeling, W. Va 1919 1920 1921 1919 1920 1921 January 103 136 118 36 41 40 February 85 113 96 30 33 31 March 101 144 107 33 40 36 April. 113 151 108 32 45 37 May 122 147 106 34 36 33 June 114 142 110 37 42 35 July 123 147 121 40 42 30 August 125 133 107 32 40 28 September '. 130 130 113 33 40 28 October 122 122 125 40 39 34 November 117 125 127 33 46 34 December 139 138 152 38 47 37 Total 1,394 1,628 1,390 418 491 403 Youngstown, Ohio Baltimore, Md. 1919 1920 1921 1919 1920 . 1921 January 67 74 69 356 498 448 February 47 56 45 288 395 353 March 54 70 53 315 462 413 April 56 69 52 317 467 396 Mav 54 56 44 343 456 393 June.. 65 62 46 447 477 421 July 72 73 45 486 486 419 August 67 63 39 466 450 441 September 67 69 45 444 459 418 October 65 64 46 462 491 466 November 51 68 38 430 449 443 December 58 71 44 492 509 480 Total 723 795 566 4,846 5,599 5,091 Charleston, S. C. Charlotte, N. C. 1919 1920 1921 1919 1920 1921 January 34 54 29 30 48 24 February 27 40 24 21 43 20 March 31 46 25 19 44 24 April 31 45 28 21 41 24 May 37 47 24 24 40 24 June 36 42 25 23 39 26 July 35 41 25 25 35 21 August 27 29 23 21 30 22 September 29 24 23 19 32 26 October. 52 30 25 28 33 29 November 51 30 23 36 38 29 December 51 28 27 40 31 31 Total . 441 456 301 307 454 300 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

284 REPORT OF THE FEDERAL RESERVE BOARD. DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—-Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. [In millions of dollars.] Columbia, S. C. Huntington, W. Va. Norfolk, Va. 1919 1920 19211919 1920 1921 1919 1920 January 30 42 I 25 78 70 February.. 27 32 22 69 53 March 28 39 25 70 62 April 25 32 22 76 54 May 29 35 ': 21 88 54 June 29 30 22 90 62 July 28 25 20 86 59 August 25 21 ! 20 79 53 September. 29 24 ; 19 75 54 October 46 27 : 21 96 64 November. 39 I 25 ; 20 105 63 December.. 39 ! 24 : 22 75 Total 374 ! 356 249 259 1,011 1,036 723 Raleigh, N. C. Richmond, Va. 1919 1920 1921 1919 1920 1921 January— 116 146 127 February.. 97 119 115 March 93 123 114 April 95 130 105 May 101 116 100 June 97 I 120 105 July 103 i 119 99 August 111 | 107 102 September. 123 ! 106 109 October 156 j 124 120 November. 146 I 141 130 December.. 157 141 138 Total 238 240 208 1,395 1,492 1,364 Washington, D. C. Atlanta, Ga. 1919 1920 1921 1919 1920 1921 January 158 119 162 111 February.. 138 96 131 97 March 155 100 151 108 April 160 ioi: 148 101 May 157 108 140 101 June 181 111 138 100 July 156 116 132 98 August 122 140 109 121 93 D S N O e e c o p c t v o t e e e b m m m er b b b e e e r r r . . . . 1 1 1 1 6 5 4 7 1 7 6 3 | 1 1 1 1 8 7 6 4 6 0 1 8 1 1 1 1 6 3 5 6 9 5 3 4 1 1 1 1 3 1 2 1 2 9 2 7 1 1 1 1 1 1 0 0 9 9 2 5 Total. 1,910 I 1,481 1,613 1.254 iugusta, Ga. Birmingham, Ala. 1919 1920 j 1921 1919 1920 1921 January 31 61 1 25 59 79 76 February... 24 40 ! 22 52 67 65 March 26 55 ! 22 55 75 68 April 25 49 22 46 74 62 May 41 ! 20 57 76 58 June 31 38 21 55 75 58 July 34 22 55 77 51 August 28 31 ! 19 57 70 51 September.. 41 35 30 60 74 60 October 62 40 32 71 80 55 November.. 59 33 26 65 78 55 December... 52 30 30 73 83 68 Total.. 444 487 j 291 705 908 727 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEBITS TO INDIVIDUAL ACCOUNTS. 285 DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—•Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. [In millions of dollars.] Chattanooga, Tenn. Jacksonville, Fla. 1919 1920 1921 1919 1920 1921 January 54 February.. 45 March 52 April 52 May 45 June 43 July 40 August 38 September. 37 October 40 November. 40 December.. 47 Total.. 631 423 579 724 533 Knoxville, Tenn. Macon, Ga. 1919 1920 1921 1919 1920 1921 January 33 20 February.. 27 15 March 31 18 April 32 17 May 30 16 June 31 17 July ,31 17 August 30 16 September. 32 19 October 31 19 November. 33 17 December.. 32 19 Total 305 373 308 358 359 210 Mobile, Ala. Montgomery, Ala. 1919 1920 1919 1920 January 31 17 February... 26 13 March 27 15 April 27 15 May 30 16 June 32 11 July 32 10 August 31 14 September.. 29 17 October 38 19 November.. 37 16 December... 38 17 Total.. 378 311 247 265 180 Nashville, Tenn. New Orleans, La. 1919 1920 1921 1919 1920 1921 January 126 ! 92 318 436 312 February.... 107 i 83 252 331 241 March 121 95 248 374 254 April 92 121 86 243 370 246 May 94 116 81 282 333 228 June 84 114 105 305 337 219 July 94 118 115 293 342 231 August 87 101 107 287 333 219 September.. 86 108 113 275 336 248 October 102 109 125 354 341 266 November.. 101 100 104 357 337 256 December... 115 97 65 432 344 281 Total.. 1,110 1,338 1,171 3,646 4,214 3,001 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

286 REPORT OF THE FEDERAL RESERVE BOARD. DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. [In millions of dollars.] Pensacola, Fla. Savannah, Ga. 1919 1920 1921 1919 1920 1921 January . . . ... 9 12 7 62 103 48 February .. . 8 10 6 45 72 41 March 9 10 7 53 93 43 April 8 10 6 50 84 43 May 9 11 7 60 76 41 June 10 10 7 70 68 40 July 9 11 6 71 69 39 August 10 11 6 63 57 40 September.. 9 11 6 67 68 51 October 9 10 6 121 71 56 November 11 8 6 106 69 45 December 10 8 7 111 59 51 Total 111 122 77 879 889 538 Tampa, Fla. Vicksburg, Miss. 1919 1920 1921 1919 1920 1921 January 19 29 25 10 11 8 February 18 26 25 7 8 6 March... 21 31 28 7 8 6 April 21 30 27 8 9 5 May . . . 22 29 24 8 8 5 June.. . 19 25 22 7 7 5 July • 19 26 21 7 8 5 August 17 25 20 6 6 5 September 19 25 20 5 7 7 October 22 26 21 10 7 8 November* * 22 28 23 10 7 8 December 28 27 25 9 7 8 Total 247 329 281 94 93 76 Bay City, Mich." Bloomington. 111. 1919 1920 1921 1919 1920 1921 January 13 17 13 12 13 10 February 10 12 10 9 15 10 March . ... 11 17 11 13 21 13 April 10 16 11 13 15 12 May 11 14 10 11 12 9 June.. 12 15 10 12 13 10 July 13 15 10 12 12 10 August 12 14 10 12 12 9 September.. 12 16 11 12 13 10 October 14 14 11 12 12 9 November 15 14 11 11 10 9 December 17 16 12 12 11 10 Total 150 180 130 141 159 121 Cedar Rapids, Iowa Chicago, 111. 1919 1920 1921 1919 1920 1921 January . 22 40 48 2.686 3,342 2,898 February .. 18 ; 38 38 2,181 2,744 2,331 March . . 23 i 49 57 2,425 3,374 2,594 April 18 i 43 48 2,471 3,074 2,4 \9 May 27 \ 32 40 2,672 3,079 2,455 June.. . . 42 41 42 2,845 3,212 2,498 July 38 ; so 40 3,024 3,351 2,424 August .. 41 46 39 2,890 2,998 2,547 September.. 37 i 50 40 2 859 3,183 2,526 October 42 ! 52 43 3,094 3,338 2,710 November 40 : 46 38 3,046 2,984 2,581 December 39 ' 49 41 3,402 3,275 2,799 Total 387 536 514 33, 595 37,954 30,832 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEBITS TO INDIVIDUAL, ACCOUNTS. 287 DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. [Inmillions of dollars.] Davenport, Iowa. j : Decatur, Til. 1919 1920 1921 1919 1920 1921 January.. 32 36 31 14 20 14 February 31 35 28 11 17 11 March... 30 44 34 15 23 15 April 29 42 31 15 18 14 May . 32 35 28 15 18 13 June 29 36 27 15 19 13 July . 26 37 27 15 19 14 August 29 33 25 17 19 14 September 32 37 29 17 19 13 October. . 36 35 30 16 16 13 November 31 32 26 15 14 11 December. 34 34 30 17 15 14 Total 371 436 346 182 217 159 Des Moines, Iowa. Detroit, Mich. 1919 1920 1921 1919 1920 1921 January 77 98 76 455 696 480 February 68 89 66 392 568 390 March . . 91 163 91 429 718 461 April... 77 111 79 433 686 477 May .. 76 91 67 505 622 494 June 71 97 69 527 713 473 July .. 81 92 63 539 705 535 August 84 82 64 557 657 509 September. 92 84 64 610 690 491 October 102 86 69 626 658 486 November 82 76 65 591 580 445 December. 90 76 69 637 590 505 Total . 991 1,145 842 6,301 7,883 5,746 Dubuque, Iowa. Flint, Mich. 1919 1920 1921 1919 1920 1921 January 9 16 14 20 42 19 February . 8 14 12 19 35 15 March... 9 19 15 28 46 18 April 9 16 13 28 48 ?0 May 10 16 14 31 42 June.. . 9" 15 12 34 48 21 July . 11 16 12 36 53 25 August 10 14 11 37 44 25 September.. 10 16 12 39 42 1 24 October 12 16 12 44 36 23 November 11 15 12 43 25 22 December. 12 15 12 41 23 21 Total . 120 188 151 400 484 255 9 Fort Wayne, Ind. Grand Rapids, Mich. 1919 1920 1921 1919 1920 1921 i January 22 31 30 76 95 85 February.. 18 30 25 60 86 72 March 19 37 31 67 96 77 April 21 35 31 65 101 77 May ... . 24 34 29 68 96 76 June. 23 36 30 70 97 81 July 26 38 28 80 103 72 August 24 34 27 91 96 81 September.. 23 34 27 82 95 85 October 30 34 28 82 96 89 November 29 33 27 75 95 85 December 35 35 33 85 96 97 Total 294 411 346 901 1,152 978 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

288 REPORT OF THE FEDERAL RESERVE BOARD. DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. [In millions of dollars.] Indianapolis, Ind. Jackson, Mich. 1919 1920 1921 1919 1920 1921 January 133 169 144 17 February... 107 153 122 13 March 118 176 141 15 April 123 162 133 15 May 129 168 132 15 June 133 179 144 14 July 161 187 139 16 August 137 188 134 15 September. 143 168 128 15 October 146 159 136 16 November.. 146 147 130 13 December.. 156 164 148 16 Total. 1,632 | 2,020 1,631 235 180 I lamazoo, Mich. Lansing, Mich. 1919 1920 1921 1919 1920 1921 January 21 19 15 25 20 February.. 18 15 14 22 18 March..!"... 23 19 17 29 22 April 24 17 18 28 23 May 22 17 21 29 20 June 23 18 21 31 23 July.. 24 16 21 30 22 August 24 16 25 28 21 September. 25 17 23 26 21 October 26 17 26 26 22 November.. 23 16 25 23 18 December.. 25 20 28 21 20 Total.. 185 ! 278 207 254 318 250 Milwaukee, Wis. 1919 1920 1921 January... 241 318 274 February . 197 255 222 March . 221 319 234 April 206 298 222 May .... 235 288 216 June 247 295 226 July . 242 308 218 August 241 271 September 263 296 October . 268 305 November 233 287 December 255 293 Total 2,849 3,533 Ot Ot 3s ot oow Moline. 111. 1919 1920 1921 8 9 10 10 9 9 7 11 7 13 8 12 7 221 11 8 240 12 8 2,766 100 i Peoria, 111. Rockford, 111 1919 1920 ! 1921 1919 1920 1921 i January ; 53 50 40 20 30 22 February i 45 42 33 18 24 20 March ! 43 53 39 22 32 23 April 1 47 47 • 36 19 30 22 May.... . . .. 52 47 : 34 20 28 21 June 48 53 33 19 28 20 July . . .. . 50 52 33 21 28 21 August 43 45 31 20 25 19 September 41 44 33 22 27 18 October. 43 42 33 26 27 18 November 42 37 28 23 25 17 December ... 46 41 35 25 26 20 Total ! 553 553 408 255 330 241 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEBITS TO INDIVIDUAL ACCOUNTS. 289 DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. .DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. [In millions of dollars.] Sioux City, Iowa. South Bend, Ind. 1919 J 1920 1921 1919 1920 1921 January 65 72 56 14 16 16 February... . . . 62 67 48 11 19 16 March 66 84 61 14 15 23 April 61 79 45 14 i 16 26 Mav . . 67 76 34 14 23 26 June 69 76 39 18 24 1 29 July 76 71 35 15 24 ! 24 August 56 61 34 16 24 24 September . . 57 66 33 16 22 26 October 64 67 35 19 24 26 November 53 56 31 15 20 22 December 56 50 31 17 17 26 Total 752 825 482 183 244 284 Waterloo, Iowa. Evansville, Ind. 1919 1920 1921 1919 1920 1921 January - .... 14 15 12 18 27 22 February . . 11 16 11 12 24 18 March 14 26 14 19 26 20 April 14 21 14 21 24 21 May 15 19 10 22 24 21 June 14 21 12 20 23 22 July 15 19 12 20 24 24 August - - 13 17 11 20 21 21 September 16 18 12 22 21 October . 16 17 13 23 22 November 14 15 10 22 22 December 16 14 12 25 24 24 Total 172 218 143 237 284 258 Little Rock, Ark. Louisville, Ky. 1919 1920 1921 1919 1920 1921 January 35 47 48 179 186 112 Februarv 28 40 38 174 160 128 March ...... 30 46 39 173 166 104 April - --- 33 42 40 146 156 97 May . 34 41 37 156 153 98 June ..... 26 39 39 153 156 103 July 33 42 35 157 143 96 August ... . 34 32 37 140 129 90 Sept emb er 40 43 49 139 122 91 October .... 51 59 51 146 121 98 November 44 47 46 143 115 101 December . 47 56 48 164 121 105 Total 435 534 507 1,870 1,728 1,223 Memphis, Term. 3t. Louis, Mo. 1919 1920 1921 1919 1920 1921 J&HU3XV 145 222 120 651 742 579 February . . . 115 170 86 508 613 467 March . 112 167 94 541 710 530 April 115 156 83 554 674 506 May 116 135 84 571 649 507 June 129 135 83 625 658 521 July .. 125 124 81 696 655 486 August 109 118 81 630 617 474 September 110 129 104 618 641 492 October 178 138 142 679 666 548 Nov ember 182 132 125 629 611 506 December 198 127 120 701 653 570 Total 1,634 1,753 1,203 7,403 7,889 6,186 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

290 REPORT OF THE FEDERAL, RESERVE BOARD. DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. [In millions of dollars.] Aberdeen, S. Dak 1919 1920 1921 January 6 10 9 February 5 6 5 March .. 5 8 6 April 6 8 6 May 7 8 6 June 9 $ Q July 9 7 6 August . 8 8 6 September.. . . . 9 9 6 October 9 8 6 No; ember 6 8 6 December 8 9 6 Total 87 97 74 Duluth, Minn. 1919 1920 1921 January 146 78 87 February . 60 67 57 March 58 73 60 April 94 89 68 May 91 101 69 June 92 95 77 July .. 100 96 66 August 80 87 73 September 93 143 112 October 106 170 92 November 82 161 82 December 81 131 68 Total 1,083 1,291 911 Grand Forks, N. Dak. 1919 January ... . . 6 February 5 March. 6 April 6 May 7 June . . . 7 July 7 August 7 September.. . .. 9 October 11 November December Total January .. February March April. . May June July August. September.. October November December.. Total ococ Billings, Mont. 1919 1920 1921 9 11 s 7 9 6 10 11 7 10 11 3 10 10 $ 9 9 7 Q 9 7 8 8 7 7 i? 8 11 12 8 11 11 9 114 121 90 Fargo, N. Dak. 1919 1920 1921 14 9 11 9 14 11 16 11 15 11 15 11 16 11 14 12 17 12 18 13 15 11 14 12 11 14 177 132 Great Falls, Mont. 1920 1921 1919 1920 1921 8 5 14 13 10 6 4 11 10 6 8 5 9 10 8 8 5 11 9 7 8 5 12 8 7 8 5 7 9 8 8 5 7 9 6 7 5 9 9 7 8 6 10 12 8 9 8 11 11 8 8 8 13 14 8 7 7 12 12 10 89 93 68 126 126 93 Helena, Mont. Minneapolis, Minn. 1919 1920 1921 1919 1920 1921 13 12 12 339 411 321 9 9 8 225 322 259 10 12 10 319 365 289 9 10 9 326 369 288 10 10 8 326 375 276 10 11 11 304 371 307 10 11 10 322 376 267 13 10 10 344 355 304 11 11 11 429 430 333 13 11 13 459 462 336 11 12 11 397 426 289 12 13 15 452 388 312 131 132 128 4,242 4,650 3,581 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEBITS TO INDIVIDUAL ACCOUNTS. 291 DEBITS TO INDIVIDUAL ACCOUNTS AS EEPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. [In millions of dollars.] St. Paul, Mini 1919 1920 January . . 161 170 February 136 149 March 148 187 April . . .. 145 163 May 156 142 June 167 155 July 162 162 August 155 143 September 184 150 October . 173 172 November .. 170 164 December 192 152 Total 1,949 1,909 Superior, Wis 1919 January 8 February 7 March 7 April 8 May . 8 June 5 July 5 August 8 September 9 October . .. 10 November December Total January February March April Mav June July August September October November December Total January February March April May June . .. July August September October November December Total 00 DC l. 1921 120 108 120 122 116 123 121 115 120 137 120 138 1,460 1920 1921 9 7 9 9 9 9 9 9 8 10 10 11 92 109 OC OO OC OC OO OO OOI< 8 8 00 00 98 Bartlesville, Okla. 1919 1920 10 15 8 14 9 16 10 16 12 18 12 12 12 11 14 13 16 139 OOCO^ 1921 15 11 11 11 9 9 9 7 15 7 16 8 16 16 190 Colorado Springs, 1919 1920 9 13 8 13 10 16 10 15 13 14 16 14 18 14 17 15 14 16 14 14 13 16 14 13 156 173 OOO Sioux Falls, S. Dak. 1919 1920 1921 37 19 26 17 40 21 30 18 30 17 30 19 26 17 23 17 25 16 28 17 24 16 22 17 341 211 Winona, Minn. 1919 1920 6 4 6 4 6 4 6 4 5 5 5 5 6 4 5 6 5 7 6 4 6 115 Colo. 1921 12 10 12 10 10 11 11 13 12 11 10 12 134 COCO 1921 4 4 5 4 4 4 5 4 4 5 4 5 68 52 Cheyenne, Wyo. 1919 1920 Q 9 10 8 8 00 0OO3 1921 10 8 8 8 7 10 9 9 9 8 9 9 9 8 10 11 105 105 Denver, Colo. 1919 1920 1921 131 246 162 103 200 125 124 213 147 133 190 143 155 192 135 140 183 144 128 190 135 136 177 144 139 210 141 159 227 141 194 210 153 207 205 153 1,749 2,443 1,723 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

292 REPORT OF THE FEDERAL RESERVE BOARD. DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. [In millions of dollars.] Joplin, Mo. Kansas City, Kans. 1919 1920 1921 1919 1920 1921 January 17 19 19 February.. 16 12 15 March 17 13 16 April 18 14 14 May 17 14 14 June 16 I 15 15 July 15 i 13 14 August 14 j 15 14 September. 16 13 15 October 15 | 15 14 November. 12 ! 13 14 December. 13 | 10 17 16 Total 186 | 107 173 214 180 Kansas City, Mo. Muskogee, Okla. 1919 1920 1919 1920 January 387 426 332 26 February.. 347 356 268 21 March 387 412 304 24 April 377 341 302 16 May 407 387 294 17 June 381 394 301 16 July 465 379 312 13 August 490 399 338 12 September. 424 426 340 14 October 411 425 322 17 November. 411 393 293 16 December.. 466 368 292 16 Total 4,706 3,698 226 301 208 Oklahoma City, Okla. Omaha, Nebr. 1919 1920 1921 1919 1920 January... 90 100 240 278 192 February.. 76 82 230 242 164 March 93 95 278 293 200 April 93 87 232 261 178 May 101 81 264 262 169 June 107 83 240 265 184 July 103 84 266 253 183 August 121 82 295 241 192 September. 121 92 286 258 182 October 121 312 247 179 November. 78 118 246 220 153 December. 107 87 273 202 161 Total 814 1,251 1,059 3,162 3,022 2,137 Pueblo, Colo. St. Joseph, Mo. 1919 1920 1919 1920 1921 January 105 104 81 February.. 81 70 63 March 77 104 73 April 84 100 66 May 90 90 63 June 78 84 64 July 75 67 69 August 79 75 70 September. 90 78 70 October 83 81 72 November. 85 74 66 December.. 87 74 71 Total 235 269 220 1,014 1,001 828 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DKBITS TO INDIVIDUAL, ACCOUNTS. 293 DEBITS TO INDIVIDUAL ACCOUNTS AS KEPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. [In millions of dollars.] Topeka, Kans. Tulsa, Okla. 1919 1920 1921 1919 1920 1921 January. 21 27 18 86 125 119 February. . 18 24 14 71 111 108 March 21 26 16 81 135 97 April 20 28 17 80 129 91 Mav 20 25 13 88 118 82 June 21 21 16 94 131 85 July. . . 23 19 16 109 131 68 August 25 19 15 92 124 62 September 24 18 15 97 106 63 October 27 18 17 109 124 63 November 25 16 14 104 122 67 December 25 15 17 118 134 90 Total 270 256 188 1,129 1,490 995 Wichita, Kans Albuquerque, N. Mex. 1919 1920 1921 1919 1920 1921 January . 37 65 49 6 9 8 February.... . . 35 61 39 5 7 7 March 39 61 42 6 9 6 April. 37 62 42 6 8 6 May 45 57 42 7 8 5 June 45 58 45 7 9 8 July. 63 75 52 8 8 8 August 62 70 49 7 7 6 September.. . . . 56 69 46 7 8 7 October 56 59 43 8 9 8 November. . . . .. 52 48 39 8 9 8 December 55 46 40 8 8 9 Total 582 721 528 83 99 86 Austin, Tex. Beaumont, Tex. 1919 1920 1921 1919 1920 1921 January 16 19 15 19 22 19 February. . 13 15 12 16 20 16 March. . 16 15 13 16 21 16 April 12 15 11 16 23 13 May 19 15 13 16 19 13 June 23 15 11 16 21 13 July 16 13 11 17 21 12 August . . 14 13 11 15 21 14 September ' 13 19 14 18 20 13 October i 19 21 14 19 21 13 November.. 20 16 15 21 18 13 December 19 16 14 27 19 15 Total 200 192 154 216 246 170 ]Dallas, Tex. El Paso, Tex 1919 1920 1921 1919 1920 1921 January 144 239 164 27 43 35 February . 116 172 132 26 36 30 March 123 197 153 29 43 36 April 127 174 137 29 42 32 May. 137 167 136 33 47 34 June 149 171 133 32 42 37 July 150 158 124 29 39 29 August. .. 140 153 125 30 34 29 September 170 184 156 28 37 28 October 221 214 172 37 40 32 November 218 192 157 38 43 33 December 235 186 166 43 47 37 Total... 1,930 2,207 1,755 381 493 392 85227—22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

294 REPORT OF THE FEDERAL RESERVE BOARD. DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BJ BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. [In millions of dollars.] Fort Worth, Tex. Houston, Tex. 1919 1920 1921 1919 1920 1921 January 80 111 103 121 173 137 February 67 85 96 89 139 114 March 69 106 91 97 156 128 April . 72 107 82 105 149 108 May 86 103 79 129 146 101 June 90 110 85 143 139 110 July. . 97 115 86 152 166 104 August 93 115 94 148 167 108 September 91 119 104 140 177 129 October . . . 112 124 122 170 187 139 November 115 112 129 169 155 115 December 134 113 144 190 156 129 Total 1,106 1,320 1,215 1,653 1,910 1,422 San Antonio, Tex. Shreveport, La. 1919 1920 1921 1919 1920 1921 January 30 41 32 26 45 37 February .. 24 33 26 16 37 32 March 27 38 31 22 42 24 April . 27 36 29 21 41 28 May 29 35 30 25 44 30 June . 36 33 26 41 27 July ie 32 26 29 29 24 August . . 21 33 29 26 29 24 September 32 39 28 31 31 30 October . . 36 37 27 36 36 31 November 37 34 27 38 36 27 December 40 35 29 36 37 32 Total 319 429 347 332 448 346 Texarkana, Tex. Tucson, Ariz. 1919 1920 1921 1919 1920 1921 January. 6 9 7 7 7 7 February 6 10 6 7 6 6 March 6 12 7 7 7 7 April 6 11 6 8 7 6 MaV * • -- 7 9 6 8 8 8 June 8 9 7 7 8 8 July 8 7 5 6 7 7 \ugust 8 7 6 5 7 6 September 8 8 7 5 7 6 October 8 9 7 5 7 7 N ovember 7 10 7 5 7 7 December 8 10 9 7 7 8 Total 86 111 80 77 85 83 Waco, Tex. Berkeley, Calif. 1919 1920 1921 1919 1920 1921 January . 15 22 19 15 14 February 13 21 16 i .* 10 11 March 13 20 16| 12 13 April 12 18 14 12 12 May - .. 13 17 13 13 13 13 June 14 18 13 9 12 12 July 15 16 13 9 12 12 August 14 15 13 11 12 14 September 16 21 19< 10 14 14 October 20 23 21 11 12 15 N ovember . 20 18 16 11 13 14 December 20 19 17! 13 14 16 Total 185 228 190 87 151 160 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEBITS TO INDIVIDUAL ACCOUNTS. 295 DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. [In millions of dollars.] Boise, Idaho. Fresno, Calif. 1919 1920 1921 1919 1920 1921 January 12 17 13 28 50 45 February 8 15 9 22 48 51 March. . 9 14 10 25 43 45 April 11 12 11 25 39 40 May.. . . . 11 15 10 27 46 38 June 11 15 11 26 44 36 July 15 14 12 33 47 35 August.... 12 14 11 30 46 38 September 14 13 12 40 56 53 October 17 13 12 55 76 72 November 17 13 13 53 74 65 December 17 14 13 49 63 58 Total 154 169 137 413 632 576 Long Beach, Calif. Los Angeles, Calif. 1919 1920 1921 1919 1920 1921 January . 11 26 24 259 445 459 February . . .. 10 21 20 242 389 380 March 13 25 26 273 469 482 April 14 25 25 273 425 434 May » 14 22 • 22 292 400 40S June 12 21 24 285 436 442 July 16 25 25 334 461 425 August 15 22 24 319 412 434 September 15 23 23 336 422 425 October 17 24 24 359 433 474 November 17 24 25 367 444 484 December 22 26 29 427 507 538 Total 176 284 291 3,766 5,243 5,385 Oakland, Calif. Ogden, Utah. 1919 1920 1921 1919 1920 1921 January 53 90 86 17 20 21 February. 46 79 74 14 17 13 March 55 90 86 17 19 14 April 54 87 79 19 14 14 May 61 98 83 17 16 13 June 54 137 80 14 17 14 July 61 160 78 14 17 10 August 60 93 77 14 16 12 September 59 92 77 18 20 12 October 81 94 80 19 21 16 N ovember 76 87 81 22 24 20 December 92 105 94 25 28 19 Total 752 1,212 975 210 229 178 Pasadena. Calif. Portland, Oreg. 1919 1920 1921 1919 1920 1921 January 12 166 203 159 February.. 11 i 135 171 143 March 12 ! 156 217 162 April 13 I 162 213 169 May 17 | 180 191 140 June 18 | 170 193 147 July 18 | 162 199 131 August 16 191 186 149 September. 16 203 199 161 October 18 239 208 159 November. 19 195 193 131 December.. 22 i 208 190 138 Total 192 2,167 2,363 1,789 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

296 REPORT OF THE FEDERAL, RESERVE BOARD. DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued. [In millions of dollars.] Reno, Nev. Sacramento, Calif. 1919 1920 1921 1919 1920 1921 January 7 14 12 60 71 58 February.. 7 10 9 45 50 48 March 8 13 11 47 62 56 April. .. 10 12 11 49 59 54 May 11 12 11 52 54 52 June.. 10 13 ' 12 49 58 54 July 4 . 10 14 12 50 68 54 August 10 14 11 58 69 49 September 12 12 10 61 76 63 October 15 12 : 11 70 78 73 November.... 13 13 11 72 82 74 December 13 14 11 84 72 80 Total 12G 153 ; 132 697 799 715 Salt Lake City, Utah San Diego, Calif. 1919 1920 1921 1919 1920 1921 January. . 68 87 81 25 35 February 53 70 54 19 31 March 60 84 64 20 38 April 61 80 70 16 35 May 67 74 50 23 36 June (5(5 75 61 22 35 July 70 80 55 25 39 August 67 70 55 22 33 September.. 71 77 61 21 35 October 77 79 60 25 36 November 83 75 69 22 36 December 103 99 91 33 37 Total 846 950 771 273 426 San Francisco, CaliJ San Jose, Calif. 1919 1920 1921 1919 1920 January 678 942 878 28 February 599 781 697 22 March 666 950 915 15 22 April 603 923 778 15 21 May.... 703 927 744 15 22 J J u u n ly e 7 8 0 1 3 9 1 1 7 ,0 O 1 O 0 3 7 6 5 6 0 4 2 1 0 5 2 2 2 9 August 828 937 691 24 26 September. . . 829 970 752 25 ! 27 October 902 983 792 36 i 32 November . 819 947 780 31 27 December 969 995 848 29 24 Total. . 9,118 11,368 9,289 225 302 Seattle, Wash. Spolcane, Wash. 1919 1920 1921 1919 1920 January 200 221 138 39 60 February 1 147 195 i 118 31 49 March 188 231 142 38 61 April 176 221 137 39 59 May 192 206 129 45 56 June. . . . . ... 203 213 140 43 57 July 209 200 131 47 53 August - - • 230 188 133 47 52 Sent ember 236 182 149 60 58 October i 240 188 145 64 November 217 167 140 55 57 December 235 165 148 61 59 Total 2,473 2,377 1,650 570 685 CO CO O" 36 32 32 34 32 31 32 34 40 408 1921 24 17 18 22 17 18 19 20 21 25 23 23 247 1921 51 40 49 46 43 48 45 44 50 49 43 47 555 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEBITS TO INDIVIDUAL ACCOUNTS. 297 DEBITS TO INDIVIDUAL ACCOUNTS AS REPORTED BY BANKS IN LEADING CLEARING- HOUSE CENTERS—Continued. DATA FOR EACH REPORTING CENTER, BY MONTHS—Continued . [In millions of dollars.] Stockton, Calif. Tacoma, Wash. 1919 1920 1921 1920 1921 January 39 February.. 29^ March..... 41 April 39' May 36 June 36 July 35 August 34 September. 38: October 38 November. 38- December.. 38 Total 2G7 298 247 441 Yakima, Wash. January — February.. March April May.. June July August September. October... November. December. Total NOTE.—Figures for each city and district have been adjusted to the nearest million, and consequently the sum of the figures for the cities is not in esact agreement with district totals. Figures for the following cities are incomplete, and are therefore not included in the summary: Manchester, N. H.. Portland, Me., Springfield, Mass., Cincinnati, Ohio, Washington, D. C, Huntington,. W. Va., Jackson, Mich., Moline, 111., Fargo, N. Dak., Sioux Falls, S. Dak.. Winona, Minn.. Cheyenne,. Wyo., San Antonio, Tex., Berkeley, Calif., San Jose, Calif. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE RATES. to CO 00 COUNTRIES INCLUDED IN COMPUTATION OF FOREIGN EXCHANGE INDEX. [See pages 81-83.] Average. Average. High. Low. Per cent Per cent Rate. of par. of par. Belgium (par= 19.30 cents per franc): Switzerland (par ==19.30 cents per July....; 7.3300 7.9700 i 7.6370 39.57 franc) —Continued. August 7.3210 7.6400 ! 7.5270 39.00 September 17.0300 17.3100 17. 2000 89.12 September 6.8400 7.6400 | 7.1700 37.15 October 17.3600 19.2600 18.2332 94.47 October 6. 9900 7.2500 | 7.1316 36.95 Novem her 18. 3700 19.0200 18.8035 97.43 November 6.5300 7.1800 ! 6.9391 j 35.95 December 19. 0900 19.5400 19.3919 100. 48 December 6.9300 7.8800 | 7.5354 ' 39.04 United Kingdom (par=486.65 cents Denmark (par*= 26.80 cents per krone): per pound): July 15.1000 16.8200 i 15.7790 58.88 July 356.1500 373.3500 363. 2130 74.64 August 15.1000 17.8500 I 16.1900 60. 41 August 356.4750 373.1300 385. 3632 75.08 September 17.1500 17.8800 1 17.6700 65.93 September 3)9.9000 371.6300 372.4000 76.52 October 17.9400 19.3000 i 18.9220 70.60 October 372.8800 395. 5700 387. 2892 79.58 November 17.8700 18.7600 ! 18.4674 68.91 November 392.0300 400.2100 397.0196 81.58 December 18.6400 20.9300 | 19. 5165 72.82 December 403. 7500 422.9500 415.6108 85.40 France (par= 19.30 cents per franc): Canada (par= 100.00 cents per dol- July 7.5500 8.2300 7. 8131 40.48 lar): August 7.6190 7.9300 7.7581 40.20 July 87. 2917 89.0521 88.1973 88.20 September 6.9800 7.8700 7.2800 37.72 August 89.1250 90.2080 89.7819 89.78 October 7.0700 7.4000 7.2524 37.58 September 89.1250 90.9167 89.8519 89. 85 November 6.9200 7.3900 7.1991 37.30 October 90. 8281 92.1094 91.3906 91.39 December 7.2300 8.2200 7.8446 40.65 November 91.0313 92.1641 91.5082 91.51 Germany (par= 23.82 cents per mark): December 91.5469 95.2031 92.7744 92.77 July 1. 2210 1. 3505 1.3025 5.47 Argentina (par=96.48 cents per gold o August — 1.0930 1.2485 1.1896 4.99 peso): September. . 7989 1.1705 . 9574 4.02 July 63.7000 68.0600 ! 65.7990 68.20 October .5420 .8278 .6832 2.87 August 64.6800 68.0800 i 66.5550 68.98 November .3385 . 5385 .3924 1.65 September 67.4800 73.8300 | 69.6300 72.17 December .4339 .6058 .5258 2.21 October 71.3500 74.4700 I 73.0780 75.74 Italy (par= 19.30 cents per lira): November 72.4600 74.3600 J 73.4739 76.15 July... 4.0800 4.9200 4.5264 23.45 December 72. 8600 76.1400 ! 74.8042 77.53 August 4.1900 . 4.4400 4.3156 22.36 Brazil (par= 32.44 cents per milreis): September.. 3.9800 4.5000 4.2000 21.76 July 10.1730 11.1400 10.4490 I 32.20 October 3. 8600 4.1100 3.9708 20.57 August 11.4400 12.1900 11.7600 ! 36.25 November.. 4.0300 4.2100 4.1213 21.35 September 11.9900 12.8300 12.3700 I 38.13 December.. 4.2400 4.7200 4.4365 22.99 October 12.4900 13.0000 12.7080 I 39.17 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Netherlands (par= 40.20 cents per November 12.3300 12.7900 12.5996 38.8! florin): December 12.5300 12.8400 12.6692 39.05 July 30.6800 32.8800 31.7810 79.06 Chile (1913 average=19.53 cents per August 30.5200 31.7600 31.0000 77.11 paper peso): September 31.0000 32.1900 31.6600 78.76 July 10.1250 10.8750 10.4430 53.47 October 31.9900 34.7100 33.4544 83.22 August 9. 7500 10.6250 10.2400 52.43 November 34.0200 35.7900 34.9722 87.00 September 9.8750 11.6250 10.7080 54.83 December 35.5000 36.9800 36.3104 90.32 October 11.0000 12.1250 11.7300 60.06 Norway (par= 26.80 cents per krone): November 10.5000 11.6250 11.0380 56.52 July 12.7900 14.2300 13.3800 49.93 December 10.5000 10.8750 10.7837 55.22 August 12.6200 13. 8100 13.0700 48.77 China (1913 average price of silver September 12.2700 13.6200 12. 8600 47.99 content=66.85 cents per Shang- October 11.9300 13.5500 12.6444 47.18 hai taei): November » 13.5300 14.9400 14.1209 52.69 July 65.6750 68.0000 66.9250 100.11 December 14.2500 16.0700 15.2327 56.84 August 66. 8000 68.5000 67.8580 101.51 Spain (par= 19.30 cents per peseta): September 68.3700 79.9000 73.0000 109.20 July 12.6200 12.9400 12.8200 66.42 October 75.6000 80.3500 78.4016 117.28 August 12.0200 13.0700 12.8900 66.79 November 74.0800 77.7100 75.9043 113.54 o September., 12.9600 13.1000 13.0200 67.46 December 74.4800 76.3800 75.3162 112.66 N D O e o c c t v o e e b m m e b r b e e r r * 1 1 1 3 3 3 . . . 3 0 9 6 3 5 0 0 0 0 0 0 1 1 1 3 5 4 . . . 4 1 0 5 7 9 0 0 0 0 0 0 1 1 1 3 3 4 . . . 2 7 6 5 1 4 6 2 9 5 0 6 6 7 7 8 1 5 . . . 0 6 9 7 6 0 Indi J a A u u l ( y g p u a s r t = 48.66 cents per rupee): 2 2 2 2 . . 4 8 5 3 8 0 0 0 2 2 1 5 . . 0 6 3 3 0 0 0 0 2 24 3 . . 2 0 2 5 4 8 0 8 4 4 7 9 . . 3 7 9 8 Q (-H Sweden (par= 26.80 cents per krona): September 25.2100 27.4800 26.3900 54.23 July 20.1000 21.9400 21.0400 78.50 October 26.9800 28.1900 27. 4188 56.35 A Se u p g t u e s m t ber i I 2 2 0 1 . . 2 3 7 9 3 0 0 0 2 2 2 1 . . 4 7 4 3 0 0 0 0 2 21 1 . . 7 1 8 1 0 2 0 0 8 7 1 8 . . 2 7 7 8 N D o ec v e e m m b b e e r r 2 2 6 6 . . 4 7 3 1 0 0 0 0 2 27 7 . . 9 2 6 8 0 0 0 0 2 2 6 7 . . 8 4 7 4 3 8 9 8 5 56 5 . . 4 2 1 3 o X October I 22.2900 23.4200 22.9364 85. 58 Japan (par= 49.85 cents per yen): W November ! 22.7800 23. 5900 23.2335 86.69 July 47. 8800 48.2500 48.0114 96.31 December 23.6600 25.2200 24. 5281 91.52 August 48.1880 48.5000 48.3690 97.03 Switzerland (par= 19.30 cents per September 47.8200 48.4600 48.2000 96.69 franc): October 47.4100 47.9100 47.6552 95.60 July 16.3700 16. 8400 16.5460 85.73 November 47. 7700 47.9500 47.8961 96.08 August 16. 3800 17.0600 16.8170 87.13 December 47.7800 47.9900 47.9219 96.13 CD CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OTHER COUNTRIES. O o Average. Average. Low. High. Low. High. Per cent Per cent Rate. of par. Rate. of par. Austria (par= 20.26 cents per krone): Yugoslavia (par=20.26 cents per July 0.1094 0.1710 0.1417 0.70 krone)—Continued. August . 1125 . 1319 .1193 .59 September 0. 3950 0.5600 0. 4759 2.35 September .0582 .1250 .0936 .46 October .3281 .4388 .3795 1.87 October .0481 .0659 . 0561 .28 November . 2591 .3766 . 3249 1.60 November , .0302 .0491 .0360 .18 December .3591 . 3981 .3819 1.88 December .0325 .0438 .0387 .19 Yugoslavia (par= 19.30 cents per Ser- B C u ze lg c A J S N D O a h u e u o e c r o l p i c t y g v s a o t e l e u e o b m m ( s m v e p t b r a b b a e k e e r r i r = r a 1 ( 9. p 30 a r= c e 2 n 0 t . s 2 6 p e c r e l n e t v s ) p : er . . . . . . 6 6 6 6 6 4 8 8 8 7 2 1 2 0 5 5 0 0 0 7 0 0 0 0 1. . . . . . 0 7 7 6 9 8 9 6 2 8 0 7 3 1 0 9 0 3 0 3 0 2 8 0 . . . . . . 8 9 6 6 7 8 7 5 8 7 2 0 5 4 1 0 2 8 1 S 4 4 4 7 4 3 3 4 3 3 . . . . . . 4 5 7 9 5 9 7 3 4 3 6 5 bia A J D N S O n u e e u o c l p c t y g v d o t e e u i e b m n m s m e t a b r b b r e e ) e r : r r 2 2 1 1 1 1 . . . . . . 2 0 3 6 2 4 5 3 1 0 4 4 0 8 1 2 5 9 0 8 3 5 0 0 2 2 2 1 1 1 . . . . . . 7 5 6 5 2 7 3 1 0 0 5 7 6 0 0 0 0 0 0 0 0 0 0 8 2 2 1 1 1 1 . . . . . . 3 9 5 3 5 5 0 1 6 3 3 5 2 2 3 0 6 2 8 2 4 0 6 7 1 1 9 7 6 7 3 2 . . . . . . 7 8 9 9 0 2 7 9 6 1 7 8 krone): Cuba (par= 100.00 cents per peso): July 1.2510 1.3600 1.3125 6.48 July 98. 8400 99.2520 99.0232 99.02 August 1.1700 1.2900 1. 2247 6.04 August 99.1067 99.4500 99.3225 99.32 September 1.0093 1. 2193 1.1601 5.73 September 99. 0938 99. 5212 99.3233 99.32 October .9372 1.0903 1.0493 5.18 October 99.4592 99.7292 99. 5258 99.53 November .9241 1.0794 1.0382 5.12 November 99. 5006 99.6876 99.5892 99.59 December 1.0853 1.4750 1.2494 6.17 December 99. 5838 99. 7188 99. 6402 99.64 F G i r n ee l J N A S O D a c u e n e o e c u l p d c t y v g ( o t e p e u e ( b m m a s p m e t r a b r b = b r e e e = r 1 r r 9 1 .3 9 0 .3 0 ce c n e t n s t s p p er e r d m ra a c r h k m k a a ) ) : : 1 1 1 1 1 1 . . . . . . 1 4 4 6 7 5 9 1 6 2 3 1 8 8 8 7 4 0 6 6 6 5 3 0 2 1 1 1 1 1 . . . . . . 6 0 7 9 5 5 0 1 2 7 5 6 2 0 1 1 7 0 9 0 4 4 1 0 1 1 1 1 1 1 . . . . . . 4 8 6 9 5 5 0 8 0 4 5 1 1 0 2 1 0 7 9 9 3 4 6 8 7 7 9 8 7 9 . . . . . . 9 8 6 2 5 8 2 3 5 8 5 0 Mex J A N D S O ic u e e u o c o l p c t y g v o t ( e u e e p b m s m m e a t b r r b b e = e e r r r 49.85 cents per peso): 4 4 4 4 4 4 8 8 8 8 8 8 . . . . . . 1 0 1 0 2 5 2 9 9 0 3 8 7 5 0 0 0 0 5 0 0 0 0 0 4 4 4 4 4 4 8 9 8 9 8 8 . . . . . . 1 9 4 9 8 2 3 8 4 , 4 8 4 7 2 5 1 0 7 4 5 5 3 0 5 4 4 4 4 4 4 8 8 8 8 8 8 . . . . . . 4 4 2 5 9 4 1 9 S 9 1 1 1 5 9 1 9 8 3 4 5 3 0 0 9 9 9 9 9 9 7 8 6 7 7 7 . . . . . . 1 1 8 4 2 1 1 2 7 9 8 3 July 5.4700 5. 8800 5.5516 28.76 Uruguay (par=-103.42 cents per peso): August , 5.4700 5.6100 5.5460 28.74 .luiy 58. 2600 63.2600 60.6890 58.68 September 4. 7800 5. 6600 5.2400 27.15 August 58.9800 67. 9100 63.9050 61.79 October 4.1300 4.7700 4.3792 22.69 September 63.3200 68.0600 64.8900 62.74 November 3.9900 4.4500 4.1426 21.46 October 65. 5800 67. 7800 66. 4388 64.24 December 4.0400 4.2000 4.1400 21.45 November 64.9600 67.2200 66.4126 64.22 Hungary (par= 20.26 cents per krone): December 65. 5500 72.0400 68.9077 66.63 July .2619 .3800 . 3323 1.64 China (1913 average price of silver con- August .2500 .2890 .2629 1.30 tent^ 48.11 cents per Shanghai September .1375 .2606 .1944 .96 Mexican dollar): October . 1272 . 1561 .1432 .71 July 47. 5500 49.5000 48.6684 101.16 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

November .0875 .1328 .1078 .53 August 48.8800 49. 8800 49.4291 102.74 December .1273 .1789 .1512 .75 September 49.6300 57.3800 52.5764 109.28 Poland (par= 23.82 cents per Polish October 55.4000 58. 6300 56.8638 118.20 mark): November 53.6000 56.1000 54. 5870 113.46 July . 0450 . 0588 .0516 .22 December 53.4500 55. 6800 54. 6027 113.50 August .0392 . 0563 . 0489 .21 Hongkong (1913 average price of silver September . 0150 . 0383 .0256 .11 content= 47.77 cents per Hongkong October .0156 .0256 .0212 .09 dollar): November . 0223 .0376 .0290 .12 July 48. 3800 50.0600 49.3200 103.24 December .0285 . 0338 .0313 .13 August 49.3500 50.4Q00 50.0700 104.81 Portugal (par= 108.05 cents per es- September 50.2000 56.0500 52.4400 109. 78 cudo): October 54.9200 57.9600 56.4892 118.25 July 10.6700 13.0800 12.0880 11.19 November 53. 2100 55.3800 54.1404 113.34 August 9. 2100 12.9300 10.0700 9.32 December 53. 2100 55.1800 54.2569 113.58 September 8.4000 11.0800 9.4160 8.71 Java (par= 40.20 cents per florin): October 8.8700 9. 9900 9.6228 8.91- July 30.0700 32.0000 30. 8410 76.72 November 7.9100 9.1000 8.4152 7.79 August 30.0000 31.1500 30.5300 75.95 December 7. 6700 8.3200 8.0196 7.42 September 31.0000 31.7500 31.3600 78.01 Rumania (par= 19.30 cents per leu): October 31.4200 33. 7800 32. 7988 81.59 July 1. 2556 1.5110 1.3995 7.25 November 33.6000 35. 0900 34.2896 85.30 August 1.1630 1.3100 1. 2383 6.42 December 34.9500 36. 7700 35.6796 88.76 September . 8113 1.1963 .9574 4.96 Straits Settlements (par= 56.78 cents October . 6554 .9000 .7785 4.03 per Singapore dollar): November .4738 .7875 .6569 3.40 July 41.4200 43. 2500 41.9840 73.94 December .7050 .8813 4.15 August 41.0800 42.1700 41. 8090 73.63 X Yugoslavia (par= 20.26 cents per September 42.0000 42.8300 42.4600 74.78 o krone): October 42.5000 45.3300 43.9204 77.35 W July .5600 . 6800 . 6374 3.15 November 44.9200 46.0800 45.4739 80.09 > August .5575 .6231 .5808 2.87 . December 45.4200 48.0000 46.8612 82.53 CO o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

302 REPORT OF THE FEDERAL RESERVE BOARD. FIDUCIARY POWERS GRANTED TO NATIONAL BANKS. Under section ll(k) of the Federal Reserve Act as amended, the Federal Reserve Board has authorized the national banks listed below to exercise one or more fiduciary powers as follows: (1) Trustee. (2) Executor. (3) Administrator. (4) Registrar of stocks and bonds. (5) Guardian of estates. (6) Assignee. (7) Receiver. (8) Committee of estates of lunatics. (9) 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. The numerals opposite the name of each bank, which refer to the list given above, indicate the power or powers it is authorized to exercise. Powers Powers granted. granted. DISTRICT NO. 1. DISTRICT NO. 1—Continued. CONNECTICUT. MAINE—continued. (See also District No. 2.) Biddeford—First National Bank of Ito9. Biddeford. Ansonia—Ansonia National Bank j 1 to 9. Damariscotta—First National Bank 1, 2, 3, 5 Bristol—Bristol National Bank j 1 to 8. of Damariscotta. and 6. Hartford— j Lewiston—Manufacturers National 1, 2 and 4. First National Bank 1 to 9. Bank. Hartford-Aetna National Bank... 1 to 4 and 9 Norway—Norway National Bank Ito8. Phoenix National Bank 1 to 9. Portland- Meriden—Home National Bank of 4. Canal National Bank Ito9. Meriden. First National Bank 1, 2 and 4. Middletown—Middletown National 1 to 4. Portland National Bank 1, 2 and 4. Bank. Waterville—Ticomc National Bank.. 1 to 4. Naugatuck—Naugatuck National 1 to 4. Bank. MASSACHUSETTS. New Britain—New Britain National 1 to 9. Bank. Adams— New Haven— First National Bank Ito8. First National Bank 1 to 8. Graylock National Bank 1 to 7 and 9. Merchants National Bank 1 to 8. Amherst—First National Bank Ito9. National Tradesmens Bank of 1 to 4. Attleboro—First National Bank Ito9. New Haven. Beverly—Beverly National Bank Ito4. New Haven Bank, N. B. A 1 to 9. Boston— Second National Bank 1 to 9. Boylston National Bank Ito9. New London- Citizens National Bank Ito9. National Bank of Commerce 1 to 5. First National Bank 1 to 7 and 9. New London City National Bank. 1,2,3, 5, 7, 8 Fourth-Atlantic National Bank.. 1 to 9. and 9. Merchants National Bank Ito9. Norwich—Thames National Bank 1 to 9. National Shawmut Bank Ito9. Torrington—Torrington National 1 to 7. National Union Bank 1 to 4. Bank. Peoples National Bank of Rox- 1 to 7 and 9 Wallingford—First National Bank... 1 to 9. bury. Waterbury— Second National Bank Ito9. Citizens National Bank 1 to 7 and 9. Webster & Atlas National Bank.. Ito9. Manufacturers National Bank 1 to 9. Brockton- Waterbury National Bank 1 to 9. Brockton National Bank Ito9. Home National Bank Ito4. MAINE. Edgarton—Edgarton National Bank. Ito3. Fall River- Auburn—National Shoe & Leather 1 to 7. Fall River National Bank Ito9. Bank. Massasoit Pocasset National Bank Ito9. Bangor—First National Bank 1,2, and 4. Metacomet National Bank Ito9. Bar Harbor—First National Bank.... 1 to 4. Fitchburg—Safety Fund National Ito9. Bath—Bath National Bank 1 to 8. Bank. Belfast—City National Bank 1 to 8. Foxboro—Foxboro National Bank... Ito9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIDUCIARY POWERS. 303 Powers Powers granted. granted. DISTRICT NO. 1—Continued. DISTRICT NO 1—Continued. MASSACHUSETTS—continued. NEW HAMPSHIRE—continued. Gardner—First National Bank Ito9. Dover— Gloucester—Cape-Ann National Bank Ito9, Merchants NationalBank Ito3. Great Barrington—National Mahaiwe 1 to 9. Strafford National Bank Ito4. Gr B ee a n n f k i . eld—First National Bank Ito9. Keen A e s — huelot National Bank 1 and 4. Haverhill— Keene National Bank 1 to 4. Essex National Bank 4. Manchester— First National Bank Ito4. Amoskeag National Bank 1 and 4. Merrimack National Bank 1 to 4. Manchester National Bank 1. Holyoke— Merchants National Bank 1 and 4. City National Bank Ito4. Milford—Souhegan National Bank 1 and 4. Holyoke National Bank Ito4. Hudson—Hudson National Bank Ito9. Indian Head National Bank Ito3. Lawrence—Bay State National Bank. Ito9. Second National Bank 1 and 4. Leominster— Newport—Citizens National Bank 1 and 4. Leominster National Bank 1 to 4. Wolfeboro—Wolfeboro National Bank 1 and 4. Merchants National Bank 1 to 7 and 9. Lowell— RHODE ISLAND. Appleton National Bank Ito9. Old Lowell National Bank 1. Newport—Aquidneck National Bank Ito4. Lynn- Central National Bank Ito8. VERMONT. Manufacturers National Bank Ito9. National City Bank 1 to 5 and 7. Barre—Peoples National Bank Ito9. Marlboro— Bellows Falls—National Bank of Bel- Ito3. First National Bank 1 to 4. lows Falls. Peoples National Bank Ito9. Bennington— Methuen—National Bank of Methuen 1 to 8. County National Bank Ito9. Milford—Home National Bank 1 to 4. The First National Bank Ito9. New Bedford- Brandon—First National Bank Ito4. First National Bank Ito9. Brattleboro— Merchants National Bank 1 to 9. Peoples National Bank Ito9. Newburyport—Merchants National 1 to 8 Vermont National Bank 1 to8. Bank. Montpelier—First National Bank Ito4. North Adams—North Adams National 1 to 9. Poultney—Citizens National Bank Ito4. Bank. Rutland—Baxter NationalBank 4. Northampton—N orthampton St. Albans—Welden NationalBank... Ito4. National Bank. Springfield—First National Bank Ito4. Pittsfi eld- Windsor—State NationalBank 1 to 3. Agricultural National Bank 1 to 9. Pittsfield National Bank 1 to 4. DISTRICT NO. 2. Plymouth—Plymouth National Bank Ito4. Provincetown—First National Bank- 1 to 9. CONNECTICUT. Reading—First National Bank 1 to 4. (See also District No. 1.) Salem—Merchants National Bank Ito9. Shelburne Falls—Shelburne Falls 1 to 7 and 9. Bridgeport- So N u a th ti b o r n id a g l e B — an S k o . uthbridge National 1 to 9. C Co it n y n N ec a t t i i c o u n t a N l B at a io nk nal Bank I I t t o o 9 9 . . Bank. First Bridgeport National Bank. Ito9. Springfield— Chapin National Bank 1 to 9. u an DUI y— Ito9. C T Sp h h r e i i c n o T g p h f e i i e e r l d d N N a N t a i a t o i t n o io a n n l a a l B l B a B n a a k n n k k 1 I I t t t o o o 8 9 9 . . . G N r o e r e w C D n i a w a t l y n k i c b — N h u — a r N y ti G a o N t r i n e o a a e n t l n i a o B w l n a ic a n B h l k a B N n a k a n t k io o n f a l N B o an r- k I 1 I t t o o to 9 9 . 4 . . Tisbury—Martha's Vineyard National Ito8. Tu B rn a e n r k s . Falls—Crocker National Bank. 1 to 7 and 9. S R o i w d u g a th e lk f N i . e o ld r w — a F lk ir — st C N it a y t i N on a a ti l o B n a a n l k Bank. I 1 t o to 4 . 9. W Ux a b re ri h d a g m e— — B N l a a t c i k o s n t a o l n e B N an a k t io o n f a l W B a a re n - k I I t t o o4 4 . . St B am an fo k r . d—First Stamford National Ito9. ham. Watertown—Union Market National Ito4. NEW JERSEY. Bank. Webster—First National Bank Ito4. (See also District No. 3.) Woburn—Woburn National Bank... 1, 2, 3, 6, 7, and 9. Allentown—Farmers' National Bank. Ito9. Worcester- Arlington—First NationalBank Ito9. Mechanics National Bank Ito4. Asbury Park—Merchants National Ito9. Merchants National Bank Ito9. Yarmouthport—First National Bank. Ito9. At B la a n n t k ic . Highlands—Atlantic High- Ito3. lands National Bank. NEW HAMPSHIEE. Belvidere—Belvidere NationalBank. Ito8. Bloomfield—Bloomfield National Ito4. Berlin—City National Bank 1. C lare mont—Claremon t National B ank.Ito4. Bo B o a n n to k n . — • Boonton National Bank.. Ito9. Concord— Bound Brook—First National Bank.. Ito4. First National Bank Ito9. Butler—First National Bank Ito9. Mechanicks National Bank 1 and 4. Cranbury—First National Bank Ito4. National State Capital Bank 1 and 4. j Dover—National Union Bank Ito4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

304 REPORT OF THE FEDERAL RESERVE BOARD. Powers Powers granted. granted. DISTRICT NO. 2-Continued. DISTRICT NO. 2—Continued. NEW JERSEY—continued. NEW YORK—continued. Elizabeth- Canandaigua—Canandaigua National Ito9. National State Bank 1 to 7 and 9. Bank. Peoples National Bank 1 to 9. Canton- Frenchtown—Union National Bank.. 1 and 4. First National Bank 1 to 9. Garfield—First National Bank Ito9. St. Lawrence County National 1 to 3,5 to 8. xx o D F O i K rs e t n — National Bank Ito4. Cartha "x g R> e aa — -nnKlr C . arthage National Bank... Ito9. Second National Bank Ito9. Catskill—Catskill National Bank Ito8. Jersey City— Cedarhurst—Peninsula National Ito9. First National Bank Ito9. Bank. Merchants National Bank Ito9. Cohoes—National Bank of Cohoes 1 to 8. Lambertville—Lambertville National Ito9. Clayton—National Exchange Bank.. 4. Bank. Long Branch—Citizens National Ito9. First National Bank Ito9. Bank. Second National Bank Ito8. Montclair—First National Bank Ito9. Corning—First National Bank & Ito8. Morristown— Trust Co. First National Bank Ito9. Cuba- National Iron Bank Ito9. Cuba National Bank Ito9. Newark- First National Bank Ito9. Merchants & Manufacturers Na- Ito4. Dunkirktional Bank. Lake Shore National Bank 1 to 9. National Newark & Essex Bank- Ito9. Merchants National Bank. Ito8. ing Co. Edwards—Edwards National Bank.. 4. National State Bank Ito9. Elmira— North Ward National Bank Ito4. Merchants National Bank Ito7. New Brunswick- Second National Bank Ito9. National B ank of New Jersey Ito9. Far Rockaway—National Bank of 4. Peoples National Bank 1 to 9. Far Rockaway. Newton—Sussex National Bank Ito9. Fredonia—National Bank of Fre-1 to 9. Orange- Orange National Bank Ito8. Fr d e o ep n o ia r . t—Citizens National Bank Ito9. Second National Bank Ito9. Fulton—Citizens National Bank Ito9. Passaic—Passaic National Bank 1 to 9. Geneva—Geneva National Bank 4. Paterson— Glens Falls—Merchants National Ito8. First National Bank 1 to 9. Bank. Paterson National Bank 1 to 9. Glovers vill e— Seoond National Bank 1 to 9. City National Bank Ito9. Pert C h it A y m N b a o t y io — nal Bank 1 to 9. Gosh F e u n l — ton N C at o io u n n a t l y B N a a n ti k o na o l f B O a r n an k g . e .. I 1 t t o o 9 9 . . First National Bank Ito9. County. Phillipsburg—Phillipsburg National Ito8. Granville— Bank. Farmers National Bank 4. Plainfield—City National Bank 1 to 4. Washington County National 4. Red Bank Bank. Broad Street National Bank Ito9. Hempstead— First National Bank 1 to 9. Second National Bank Ito9. Herkimer—Herkimer National Bank. 1 to 8. Ridgewood— Hoosick Falls—Peoples National 1 to 8. Citizens National Bank Ito9. Bank. First National Bank Ito9. Hornell—Citizens National Bank Ito9. Roselle—First National Bank Ito9. Hudson- Rutherford—Rutherford National Ito4. Farmers National Bank Ito9. Bank. First National Bank Ito9. Somerv He—Second National Bank... Ito4. Hudson Falls- South Amboy—First National Bank. Ito9. Peoples National Bank Ito9. South River—First National Bank... Ito9. Sandy Hill National Bank 1 to 9. Sussex—Farmers National Bank Ito4. Ilion—Ilion National Bank 1 to 9. Ithaca—First National Bank 1 to 9. NEW YORK. Jamestown— American National Bank 1 to 9. Adams—Farmers National Bank Ito9. National Chautauqua County Ito8. Albany- Bank. First National Bank 4. Kingston- National Commercial Bank & Ito8. First National Bank of Rondout.. Ito9. Trust Co. Roundout National Bank Ito9. New York State National Bank.. Ito9. Lackawanna—LackawannaNational Ito9. Amsterdam- Bank. Farmers National Bank Ito9. Little Falls—Little Falls National Ito9. First National Bank Ito9. Bank. Auburn— Lockport— Cayuga County National Bank... Ito8. National Exchange Bank 1 to 9. National Bank of Auburn Ito9. Niagara County National Bank.. 1 to 9. Bath—Bath National Bank Ito9. Lowville—Black River National Ito9. Binghamton—First National Bank... Ito9. Bank. Brooklyn— Middletown—Merchants National Ito9. First National Bank Ito9. Bank. Nassau N ational Bank Ito9. Mineola—First National Bank 4. Buffalo—Manufacturers & Traders Ito9. Morristown—Frontier National Bank 4. National Bank. Mount Vernon—First National Bank. Ito8, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIDUCIARY POWERS. 305 Powers Powers granted. granted. DISTRICT NO. 2—Continued, DISTRICT NO. 2—Continued. NEW YORK -continued. NEW YORK—continued. Newburgh— Utica— Highland National Bank 1 to 9. Oneida National Bank 1 to 9. Quassaick National Bank 1 to 9. Utica City National Bank 1 to 9. NewRochelle—National City Bank.. 1 to 9. Vernon—National Bank of Vernon... 1 to 3, 5, New York— 7,9. American Exchange National Walton—First National Bank 1 to 9. Bank. Warsaw—Wyoming County Na- 1 to 9. Atlantic National Bank of the 1 to 9. tional Bank. City of New York. Waverly—First National Bank Ito9. Bank of New York, N. B. A 1 to 9. Watertown— Bronx National Bank 4. Jefferson County National Bank.. Ito9. Chase National Bank 1 to 9. Watertown National Bank 1 to 8. Chatham & Phenix National 1 to 9. Wellsville—Citizens National Bank.. Ito9. Bank. Westfield—National Bank of West- 4. Chemical National Bank 1 to 9. field. Coal & Iron National Bank 1 to 9. Yonkers—First National Bank 1 to 9. First National Bank 1 to 9. Garfield National Bank 1 to 9. DISTRICT NO. 3. Gotham National Bank 1 to 9. Hanover National Bank 1 to 8. DELAWARE. I H M M rv a B e e i r c r n a r c h i n g h a m k a n N . a n ic n a t s s t i N N o & a n a t a t i i l o o M n B n a e a a l t l n a B k B ls a a n n k N k ation .. a . l . 1 I 1 1 t t t t o o o o 9 9 9 9 . . . . S M W L e a i a i u l l f f m r o o e r i r l d n — d — g — t P o F F e n i o i r — r p s s t l t e C N N s e a n N a t t t i a r i o o a ti n l n o a a N n l l a a B B l t i a B a o n n n a k k a n l k Bank. I I I I t t t t o o o o 9 8 9 8 . . . . National American Bank of New 1 to 9, York. NEW JERSEY. National Bank of Commerce . 1 to 8. National City Bank 1 to 9. (See also District No. 2.) National Park Bank 1 to 9, N N o o B r r w a t C S N h n i e h a c k a e h t . b T i n — o o o a n a n n r a g a d l o w B N a N a n a a n d t t i k a i o o — n o n a f a S l N l t B a B o t a r e a n w n k i k N ch ational 1 1 1 1 t t t t o o o o 9 9 9 8 . . . . A B B o u tl r r a l d A C U i n e n h t t n n g l i e i c a t t l o o o s n n e C w n t a i — N n i c t N — a C y M t a - i i F t e t o i y i c o n r h s n a N a t l a n a l N B t ic i B a a o s t n a n i k n o a k N n l a B a l a t B n i k o an n k a . l .. I I 1 I 1 t t t o o o t t o o 9 4 9 . . . 3 9 . . Nyack—Nyack National Bank Ito9. Bank. Ogdensburg—National Bank of Og- 1 to 8. Camden— densburg. First National Bank Ito9. Olean—Exchange National Bank. ... 1 to 9, National State Bank Ito9. Oneida—Oneida Valley National 1 to 9. Cape May—Merchants National 4. Bank. Bank. Oneonta— Elmer—First National Bank Ito9. Citizens National Bank 1 to 9. Glassboro—First National Bank 1 to 9. Wilber National Bank 1 to 9. Haddonfield—Haddonfield National Ito9. Ossining—Ossining National Bank... 1 to 9. Bank. Oswego—Second N ational Bank. 1 to 9. Medford—Burlington County Na- Ito9. Ovid—First National Bank 4. tional Bank. Peekskill— Merchantville—First National Bank. Ito9. Peekskill National Bank 1 to 9. Millville—Millville National Bank... Ito9. Westchester County National 1 to 9. Princeton—First National Bank 1 to 4. Bank. Sa'em—Salem National Banking Co.. Ito9. Plattsburg—Plattsburg National & 1 to 5, 7 to 9. Swedesboro—Swedesboro National Ito9. Trust Co. Bank. Bank. Port Chester-—First National Bank... 1 to 9. Trenton— Port Jervis— Broad Street National Bank 1 to 4. First National Bank 1 to 9. First National Bank , 1 to 9. National Bank of Port Jervis 1 to 9. Mechanics National Bank Ito9. Poughkeepsie— Ventnor City—Ventnor City National 1 to 9. Fallkill National Bank 1 to 9. Bank. Farmers & Manufacturers Na- 1 to 9. Woodbury—First National Bank.... Ito9. tional Bank. Woodstown—Woodstown National 1 to 9. Richfield Springs—First National 4. Bank. Bank. Riverhead—Suffolk County National 1 to 9. PENNSYLVANIA. Bank. (See also District No. 4.) Rockville Center—Nassau County 1 to 9. National Bank. Ailentown—• Rome—Farmers National Bank 1 to 9. Allen town National Bank Ito9. Saratoga Springs—Saratoga National 4. Merchants National Bank 1 to 8. Bank. Ambier—First National Bank 1 to 9. Southampton—First National Bank. 1 to 8. Annville—Annville National Bank.. Ito4. Stapleton—Richmond Borough Na- 4. Ashland—The Ashland National Ito9. tion Bank. Bank. Suft'ern—Suffern National Bank 1 to 9. Atglen—Atglen National Bank 1 to 3. Tarrytown—Tarrytown National 1 to 3, 5 to 9. Belleville—Belleville National Bank. 1 to 3. Bank. Bethlehem—Bethlehem National Ito9. Troy- Bank. Manufacturers National Bank 1 to 9. Bethlehem—Lehigh Valley National Ito8. Union National Bank 1 to 9. Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

306 KEPORT OF THE FEDERAL RESERVE BOARD. Powers Powers granted. granted. DISTRICT NO. 3-Continued. DISTRICT NO. 3—Continued. PENNSYLVANIA—continued. PENNSYLVANIA—continued. Bloomsburg—Bloomsburg National Ito9. Philadelphia—Continued. Bank. Textile National Bank Ito9. Blossburg—Miners National Bank... Ito4. Tradesmen's National Bank Ito9. Boyertown— Union National Bank 1 to 8. Farmers National Bank Ito9. Philipsburg—Moshannon National 1 to 9. National Band of Boyerstown Ito9. Bank. Catasauqua—National Bank of Cata- Ito9. P ttston—First National Bank Ito9. sauqua. PoArt Allegany—First National Bank. Ito9. Chester—First National Bank Ito9. Pottstown— Clearfield— National Bank of Pottstown Ito9. Ciearfield National Bank Ito9. National Iron Bank 1 to 9. County National Bank Ito9. Reading— Danville—First National Bank Ito3. Penn National Bank Ito4. Du Bois— Reading National Bank 1 to 9. Deposit National Bank Ito9. Red Lion—Red Lion First National Ito9. Du Bois National Bank.. Ito4. Bank. East Stroudsburg—Monroe County Ito9. Scranton—Third National Bank 1 to 9. National Bank. Shickshinny—First National Bank... 1 to 3, 5 to 8. Emaus—Emaus National Bank 1 to 9. Spring City—National Bankof Spring 1 to 9. Emporium—First National Bank Ito9. City. Ephrata— Stroudsburg—First National Bank... 1 to 9. Ephrata National Bank Ito9. Sunbury—First National Bank 1 to 9. Farmers National Bank Ito9. Tamaqua—Tamaqua National Bank. Ito9. Gettysburg—First National Bank Ito9. Tioga— Grange National Bank 1 to 4. Greencastle—First National Bank Ito9. Topton—National Bank of Topton.. 3 to 4. Harrisburg—Merchants National Ito4. Towanda—Citizens National Bank... Ito9. Bank. Tyrone—Farmers & Merchants Na- Ito9. Hazleton— tional Bank. First National Bank 1 to 9. West Chester- Hazleton National Bank Ito4. First National Bank 1 to 9. Huntingdon— National Bank of Chester County .1 to 9. First National Bank Ito9. West Grove—National Bank of West 1 to 4. Union National Bank Ito8. Grove. Jenkintown—Jenkmtown National 1 to 3, 5 to 9. Wilkes-Barre— Bank. Second National Bank Ito9. Johnstown—First National Bank Ito8. Wyoming National Bank Ito9. Lancaster— Williamsp or t— Conestoga National Bank Ito9. First National Bank 1 to 9. Fulton National Bank Ito9. Lycoming National Bank Ito9. Lancaster County National Bank. Ito9. West Branch National Bank Ito4. Lansdale—First National Bank Ito9. Wilhamsport National Bank 1 to 9. Lebanon—First National Bank Ito9. Wrightsville—First National Bank... 1 to 9. Lititz—Farmers National Bank Ito4. York- Mahanoy City—Union National Bank ltoS. First National Bank 1 to 9. Manheim— Industrial National Bank of West 1 to 4. Keystone National Bank Ito9. York. Manheim National Bank 1 to 9. Western National Bank.. 1 to 9. Marietta—Exchange National Bank.. Ito4. Maytown—Maytown National Bank. Ito4. DISTRICT NO. 4. Mount Carmel—Union National Bank 1 to 9. Mount Joy— KENTUCKY. First National Bank Ito9. Union National Mount Joy Bank Ito9. (See also District No. 8.) Mountville—Mountville National 1 to 4. Bank. Ashland— Myerstown—Myerstown National Ito4. 1 Ashland National Bank 1 to 5,1 to&. Bank. Second National Bank 1 to 5, ? to 9. Nanticoke— First National Bank 1 to 4. j, Brooksville—First National Bank 1 to 4. Nazareth—Nazareth National Bank.. Ito9. Mount Sterling- New Holland—New Holland 1 to 5 and 9. National Bank of Mount Sterling. 1 to 4. National Bank. Traders National Bank 1 to 5, 7 to 9 Newville—First National Bank 1 to 4. Newport— Northampton—Cement National Ito8. American National Bank 1 to 5,7 to 9. Bank of Siegfried. Newport National Bank 1 to 5,7 to 9. Oxford—National Bank of Oxford.... Ito9. Paris—First National Bank 1 to 5,7 to 9. Patton—First National Bank 1 to 4. Pineville—Bell National Bank 1 to 5,7 to 9. Pen Argyl— First National Bank 1 to 4. Somerset—Farmers National Bank... 1 to 5, 7 to 9. Philadelphia- Williamsburg—First National Bank . 1 to 4. Broad Street National Bank Ito7. Winchester—Clark County National 1 to 5, 7 to 9 Corn Exchange National Bank... Ito9. Bank. Eighth National Bank Ito9. 1 Fourth Street National Bank 1 to 9. OHIO. National Bank of Germantown... 1 to 8. jAkron- Ninth National Bank 1 to 9. First Second National Bank. 1, 4, and 9. Penn National Bank 1 to 9. National City Bank 1, 4, and 9. Philadelphia National Bank Ito9. Ashtabula—National Bank of Ashta- 1 to 7 and 9 Quaker City National Bank Ito9. bula. Second National Bank Ito9. Athens—Bank of Athens, N. B. A 1 to 7 and 9 Southwark National Bank 1 to 8. Bellaire—First National Bank 1, 4, and 9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIDUCIARY POWERS. 307 Powers Powers granted. granted. DISTRICT NO. 4—Continued. DISTRICT NO. 4—Continued. OHIO—continued. PENNSYLVANIA. Bucyrus— First National Bank (See also District No. 3.) Second National Bank 1, 4, and 9. Cadiz—Fourth National Bank 1 to 7 and 9. Blairsville—First National Bank Ito9. Canton— 1 to 7 and 9. Butler—Merchants National Bank... Ito9. City National Bank Ell wood City—First National Bank.. Ito9. First National Bank 1 and 4. Erie—First National Bank Ito9. Cincinnati— 4. Franklin—Lamberton National Bank Ito9. Atlas National Bank Greensburg—First National Bank.... Ito9. Citizens National Bank & Trust 1, 4, and 9. Greenville—First National Bank Ito4. Co. 1 to 7 and 9. Grove City- Fifth-Third National Bank First National Bank Ito9. First National Bank 1, 4, and 9. Grove City National Bank Ito9. Second National Bank 1 to 7 and 9. Meadville—New First National Bank. 1 to 5, 7 to 9. Cleveland- 1 to 7 and 9. New Brighton—Union National Bank Ito9. Brotherhood of Locomotive En- New Castle—First National Bank Ito9. gineers Co-operative National Ito9. New Kensington—First National lto.8. Bank of Cleveland. Bank. Central National Bank, Savings Oakmont—First National Bank 1. & Trust Co. 1 to 7 and 9. Oil City—Oil City National Bank.... Ito9. National City Bank Pittsburgh- Union Commerce National Bank. 1 to 7 and 9. Bank of Pittsburgh, N. A Ito9. Columbus- 1 to 7 and 9. Diamond National Bank Ito9. City National Bank Duquesne National Bank Ito9. Commercial National Bank 1 to 7 and 9. Farmers' Deposit National Bank 4 and 9. Huntingdon National Bank 4. First National Bank Ito9. Ohio National Bank 1 and 4. Monongahela National Bank 4. Coshocton—Commercial National 1 to 7 and 9. National Bank of America at Ito4. Bank. 1, 4, and 9. Pittsburgh. Dayton- Second National Bank of Alle- Ito9. Merchants National Bank 1, 4, and 9. gheny. Winters National Bank 1, 4, and 9. Third National Bank Ito9. Defiance— Union National Bank Ito9. First National Bank 1, 4, and 9. Western National Bank Ito9. Merchants National Bank 1, 4, and 9. Punxsutawney—Punxsutawney Na- Ito9. East Liverpool—First National Bank. 1 to 7 and 9. tional Bank. Fostoria—Union National Bank 1 to 7 and 9. Sharon- Galion—Citizens National Bank 1, 4, and 9. First National Bank Ito9. Hamilton—First National Bank 1, 4, and 9. McDowell National Bank Ito4. Hillsboro—Merchants NationalBank 1 to 7 and 9. Titusville—Second National Bank... Ito9. Kent—Kent National Bank 1 to 7 and 9. Warren—Warren National Bank Ito9. Lebanon—Lebanon National Bank... 1, 4, and 9. Washington— Lorain—National Bank of Commerce. 1 to 7 and 9. Citizens National Bank 1, 2, 3, 5, 6, Mansfield—Citizens National Bank... 4. 7, and 9. Marietta- First National Bank Ito9. Central National Bank 1, 4, and 9. Waynesburg—Citizens National Bank Ito9. First National Bank 1, 4, and 9. Zelienople—Peoples National Bank.. 1 to 4. Marion—National City Bank & Trust.1 to 7 and 9. Co. M Ne a w ss i P ll h o i n l — ade M lp e h rc ia h — an C ts i N tiz a e t n io s n ' N al a B ti a o n n k a . l 1 1 , t o 4 , 7 a a n n d d 9 9 . . "WEST VIRGINIA. Bank. Painesville—Painesviile National 1 and 4. (See also District No. 5.) Bank. Piqua— Elm Grove—First National Bank Ito9. Citizens National Bank 1 to 9. New Cumberland—First National 1. Piqua National Bank 1 to 7 and 9. Bank. R Si a d v n e e n y n — a— Ci S ti e z c e o n n s d N N at a io ti n o a n l a B l B an a k nk 1 1 . , 4, and 9. Si N ste a r t s io vi n ll a e l — B F an ar k m . ers & Producers Ito9. Steubenville— N a t i o n a 1 Exchange1 to 7 and 9. Wheeling—National Bank of West Ito9. Bank. Virginia. Tiffin- Commercial National Bank 1 to 7 and 9. Tiffin National Bank 1 to 7 and 9. DISTRICT NO. 5. Toledo—Northern National Bank.... 4. Troy- First National Bank 1 to 7 and 9. DISTRICT OF COLUMBIA. Troy National Bank 1 to 7 and 9. Urbana—Citizens National Bank 1. Washington- Wilmington—Clinton County 1, 4, and 9. Commercial National Bank 1. National Bank. Farmers & Mechanics' National Youngstown— Bank of Georgetown 1 to 8. Commercial National Bank 1 to 7 and 9. Federal National Bank 1 to 8. First National Bank 4. Lincoln National Bank 1 to 8. Zanesville— National Bank of Washington | 1 to 4. First National Bank 1, 4, and 9. National Metropolitan Bank J 1 to 8. Old Citizens National Bank 1 to 7 and 9. Riggs National Bank I 1 to 8. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 REPORT OF THE FEDERAL RESERVE BOAKD. Powers Powers granted. granted. DISTRICT NO. 5—Continued. DISTRICT NO. 5—Continued. MARYLAND. VIRGINIA—continued. Baltimore- Danville- Drovers & Mechanics' National 1 to 9. American National Bank Ito9. Bank. First National Bank , 1 to 9. Farmers & Merchants' National 1 to 9. Fredericksburg—Planters National Bank. Bank 1 to 9. C Fr u e m d M W S e b e r e e c e i r c r o s l k c a t n e n h — d r d a n — n N F t N a s a S r ' t a m e i N t o c i e o n o a r n n t a s i l a d o l B n N B & a a l a n a t B n k io M k a n n e a k c l h B an a i n c k s . 1 I 1 I I t t t o o o t t o o 8 9 9 . . . 9 4. . H M L N e a e B a x r w r a r i t n i i p n s n g o k o s t r n v o t b i n l N u l — e r e — g w R — s P o — c e F k o i F b p rs i r l r e t i s d s t N g N N e a a t a i t o t N i i o n o n a a n a l t a l i B l B B o a n a a n n n a k k k l .. . . I I 1 I t t t o o o to 9 3 4 . . 4 . . H H N Po a e y N c g w a o a e t m t r t W i s s o t o v o n i k n i w a l e d l l n e s — — B o C r a — F S i n ty i e k r F — c s . o i t r n C s N d t i a t N i N t z i a e o a n t n t i s i o a o n l n a N B a l l a a B t B n i a o a k n n n . k a . k . . l . . . I 1 I 1 t t o o t t o o 9 4 . . 4 9 . . P P N u e o t l e a r S N f r s s o k e b a l a i t u k — b i r o - o g n a — a rd l V B N i a r a g n t i k i n o i n o a a f N l C B a o t a m i n o m n k a e l r c B e ank. 1 I 1 t o t t o o 9 . 4 3. . Ri B si a n n g k S . un—National Bank of Rising 1 to 4. P P e u o la p s le k s i N N a a t t i i o on n a a l l B B a a n n k k I I t t o o 9 9 . . Ro S c u k n v . ille—Montgomery County Na- 1 to 3. Ric A hm m o er n ic d a - n National Bank Ito4. Sa t l i i o s n bu al r y B — an S k a . lisbury National Bank Ito9. C Fi e r n s t t r a N l a N ti a o t n io al n a B l a B n a k nk I 1 t o to 9 . 9. Merchants National Bank Ito9. NORTH CAROLINA. Roanoke— American National Bank Ito4. A she ville—American National Bank Ito9. First National Bank Ito9. Charlotte- National Exchange Bank Ito9. Commercial National Bank Ito9. Rocky Mount—Peoples National Merchants & Farmers National Ito9. Bank Ito4. Bank. South Boston- Union National Bank 1 to9. Boston National Bank Ito9. E D l u iz rh a a b m et — h F C ir i s ty t — Na F t i i r o s n t al & B an C k itizens I I t t o o 9 9 . . Pl B an a t n e k rs & Merchants National 1 to 4. Go N ld a s ti b o o n ro a — l B W an a k y . ne National Bank.. 1 to 9. Stau A nt u o g n u — sta National Bank Ito9. Graham—National Bank of Ala- 1 to 9. National Valley Bank 1 to 9. mance. Warrenton—Farquier National Bank. Ito9. High Point—Commercial National Ito4. Winchester— N O e x B B w f a e o n r r n d B k — . . er F n— irst N N at a io ti n o a n l a l B B a a n n k k of New 1 It o to 4 . 4. F S a h B B r e m a a n n n a e k n k r d s o & ah Me V rc a h ll a e n y t s N N a a t t i i o o n n a a l l I I I t t o o 9 4 . . SOUTH CAROLINA. WEST VIRGINIA. Charleston- (See also District No. 4.) Atlantic National Bank. Ito9. Commercial National Bank Ito9. Bluefi eld- Pe3ples National Bank 1 to 4. First National Bank Ito9. Columbia—National Loan & EX- Ito9. Flat Top National Bank 4. change Bank. Clarksburg- Greenville— | Empire National Bank Ito4. First National Bank \ Ito9. Union National Bank Ito4. Norwood National Bank 1 to9. Fairmont—National Bank of Fair- Peoples National Bank Ito4. mont Ito9. Lake City—Farmers & Merchants Ito4. Fairview—First National Bank Ito4. National Bank. Grafton—First National Bank Ito9. Orangeburg—Edisto NationalBank.. Ito9. Huntington— Rock Hill—National Union Bank 1 to 9. First National Bank Ito9. Spartanburg— Huntington National Bank Ito9. Central National Bank 1 to 4. Madison—Madison National Bank Ito4. First National Bank of 1 to 9. Martinsburg—Old National Bank.... Ito9. Parkersburg—Parkersburg National VIRGINIA. Bank Ito9. I . Welch—First National Bank Ito9. Abingdon—First National Bank J 1 to 9. Alexandria- Citizens National Bank Ito4. DISTRICT NO. 6. First National Bank Ito4. Appalachia—First National Bank.... 1. ALABAMA. Charlottes ville— Anniston— I National Bank of Charlottesville. 1 to 4. Anniston National Bank | 1 to 7 and 9. Peoples National Bank Ito9. Commercial National Bank 1 to 5, 7, Chase City—First National Bank Ito9. j and 9. Chatham—First National Bank 1 to 3. First National Bank j 1 to-8. Clifton Forge— Athens—First National Bank 1. Clifton Forge National Bank 1 to 4. Bessemer—First National Bank in I 1 to 8. Covi F n i g r t s o t n N — ational Bank 1 to 6, and 9. Bi B rm es i s n e g m ha e m r. —First National Bank... | i 1 to 9. Citizens National Bank 1 to 4. Cullman—Leeth National Bank I 1 to 4. Covington National Bank 1 to 4. Florence—First National Bank ' 1 to 8. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIDUCIARY POWERS. 309 Powers Powers granted. granted. DISTRICT NO. 6—Continued. DISTRICT NO. 6—Continued. ALABAMA—continued. TENNESSEE. Gadsden—First National Bank Ito3. (See also District No. 8.) Mobile—First National Bank Ito8. Montgomery—First National Bank .. 1 and 4. Dickson—Citizens National Bank Ito8. Oxford—First National Bank Ito8. Fayetteville—Elk National Bank 1 to 3 and 5. Piedmont—First National Bank Ito3. Johnson City—Tennessee National Ito9. Selma—City National Bank Ito8. Bank. Talladega—Talladega National Bank. Ito4. Kingsport—First National Bank 1 to 7 and 9. Tuscaloosa— Knoxville—City National Bank 1. City National Bank Ito8. McMinnville—Peoples National Bank. 1 to 3,5 to 8. First National Bank Ito8. Nashville— American National B ank Ito9. Broadway National Bank Ito4. FLORIDA. Fourth & First National Bank... Ito8. B artow—Polk County National Bank. Ito9. Te B n a n n es k see-Hermitage National Ito4. Bradentown—First National Bank... Ito4. Brooksville—First National Bank Ito8. DISTRICT NO 7 De Funiak Springs—First National 1 to 4. Bank. Jacksonville— ILLINOIS. Barnett National Bank Ito4. (See also District No. 8.) Florida National Bank Ito8. Panama City—First National Bank.. 4. St. Augustine—St. Augustine Na- Ito9. First National Bank Ito9. tional Bank. • Old Second National Bank Ito9. St. Petersburg- Belvidere— Central National Bank Ito3. First National Bank Ito8. First National Bank Ito4. Second National Bank Ito4. Tampa—First National Bank Ito8. Bushnell—First National Bank Ito9. West Palm Beach—First National Ito9. Cambridge—Farmers National Bank. Ito9. Bank. Canton National Bank Ito9. GEORGIA. First National Bank Ito8. Athens— Casey—First National Bank Ito4. Georgia National Bank 1 to 8. Charleston—National Trust Bank 1 to 9. National Bank of Athens Ito4. Chicago- Atlanta— Calumet National Bank Ito9. Atlanta National Bank 1 to 8. Corn Exchange National Bank... 4. Fourth National Bank Ito9. First National B ank of Englewood.Ito4. Fulton National Bank Ito9. Live Stock Exchange National Ito9. Lowry National Bank Ito4. Bank. Brunswick—National B ank of Bruns- 1 to 9. National Bank of the Republic.. ltofl. wick. National City Bank Ito9. Carrollton—First National Bank Ito9. Chillicothe— First National Bank Ito9. Dawson—Dawson National Bank 1 to 3,5 to 9. Danville— Fitzgerald— First National Bank Ito9. Exchange National Bank Ito4. Second National Bank Ito8. First National Bank 1 to 4, 6, 7, Decatur— and 9. Citizens National Bank Ito9. La Grange—La Grange National Ito8. Milliken National Bank Ito4. Bank. National Bank of Decatur Ito4. Macon—Fourth National Bank Ito4. Dixon—Dixon National Bank Ito9. Quitman—First National Bank 1 to 3, 5 to 8. Elmhurst—First National Bank Ito9. Winder—Winder National Bank Ito9. El Paso— First National Bank Ito9. Woodford County National Bank. Ito9. Freeport—First National Bank Ito9. (See also District No. 11.) Galesburg—First National Bank Ito9. Henry—First National Bank 1 to 7. Crowley—First National Bank of Ito7. Jolie F t— irst National Bank 1 to 4. La B k a e n k C o h f a S rle o s u — th C w a e l s c t a s L ie o u u isi N an a a ti . onal 1 a to n d 4 9 , . 6, 7, Kan W J k o a l i k i l e e l t e C — N ou a C t n i i t o t y y n a N N l a a B t t i i a o o n n n k a a l l B B a a n n k k I I I t t t o o o 9 9 4 . . . New Orleans—Whitney-Central Na- Ito9. Kewanee—First National Bank Ito9. La Salle—La Salle National Bank Ito4. Macomb—Union National Bank Ito9. MISSISSIPPI. Marengo—First National Bank Ito9. Marseilles—First National Bank Ito4. (See also District No. 8.) Mattoon—National Bank of Mattoon. Ito3. Monticello—First National Bank Ito9. Biloxi—First National Bank 1 to 4. Moweaqua—First National Bank. Ito3. Canton—First National Bank Ito4. Ottawa—National City Bank Ito9. Commercial National Bank & 1 to 9. Central National Bank Ito9. Trust Co. Commercial National Bank Ito8. First National Bank Ito9. Merchants & Illinois National 1 to 9. Meridian—First National Bank Ito8. Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 REPORT OF THE FEDERAL RESERVE BOARD. Powers Powers granted. granted. DISTRICT NO. 7—Continued. DISTRICT NO. 7—Continued. ILLINOIS—continued. INDIANA—continued. Thorntown—Home National Bank... 1 to 8. W Ro a c u k M R S T k f w o o h a e r c i e n g d r k d u d a — f i f o n s a N r h — c d - a t A u t W N i r m o e a n a r e t s u a i r o i l k N c n B e a a a g n a t l a i n N B o n k n a a a t n i N l o k B n a a t a i l n o B k n a a n l k I I I I I t t t t t o o o o o 9 9 8 4 9 . . . . . T W W W i B N p i h a l t b i a k a o t a n i t e n n i s l k o — a h s . n o n — a C n d l — — F i t B i a z F W r a e m a n n r h e k s m i r . t N s e e l r a a s t n i & N o d n a a ti l o M B n N a e a l r n a c t k B h io a a n n n a t k s l . I I I I t t t t o o o o 3 4 4 4 . . . . Bank. Winamac—First National Bank Ito8. INDIANA. IOWA. (See also District No. 8.) Arlington—American National Bank. Ito3. B B a r t a e z sv il i - lie—First National Bank Ito4. A Ba u n re c l r i o a f — t— F F ir i s r t s t N N at a io ti n o a n l a B l B an a k nk I 2 t ,3 o , 9 5 . to 7. Citizens National Bank Ito7. Boone—First National Bank 1 to 4. First National Bank 1 to 4. Burlington—Merchants National Ito9. Riddell National Bank Ito9. Bank. Brookville— Cedar Rapids- Franklin County National Bank. Ito4. Cedar Rapids National Bank Ito9. National Brookville Bank 1 to 4. Merchants National Bank 1 to 4. Cambridge City—First National Bank Ito8. Charter Oak—First National Bank... 1,2,3, and 5. Clay City—First National Bank Ito9. Cherokee—First National Bank.. Ito9. Crawfordsville— Clarence—First National Bank 1 to 4. Citizens National Bank 1 to 4. Clinton- Elston National Bank 1 to 8. City National Bank Ito4. Dana—First National Bank 1 to 3. * Merchants National Bank Ito5. Dublin—First National Bank Ito3. Coon Rapids—First National Bank.. Ito3. Dyer—First National Bank 1 to 4. Council Bluffs— Edinburg—Farmers National Bank.. Ito4. City National Bank 1 to 4. Elkhart—First National Bank.... Ito9. First National Bank Ito9. Fort Wayne— Decorah—National Bank of Decorah. Ito4. First & Hamilton National Bank. 1 to 8. Des Moines—Des Moines National Ito8. Old National Bank. Ito9. Bank. Franklin—Franklin National Bank.. Ito4. Dubuque—First National Bank Ito9. Goshen—City National Bank 1 to 9. Elkader—First National Bank Ito9. Greeneastle—First National Bank Ito9. Everly—First National Bank Ito7. Hammond—First National Bank I'to4. Fairfield—First National Bank Ito8. Indiana Harbor—Indiana Harbor Fonda—First National Bank Ito4. National Bank of East Chicago Ito9. Fontanelle—First National Bank Ito9. Indianapolis- Gladbrook—First National Bank Ito3. Fletcher American National Bank 1 to 7 and 9. Graettinger—First National Bank— Ito9. Indiana National Bank of Ito9. Greenfield—First National Bank 1 to 5, 7 to 9. Indianapolis. Grinnell— Kokomo— Citizens' National Bank 1 to 9. Citizens National Bank Ito4. Merchants National Bank 1,2,3, 5 to 7, Howard National Bank 1 to 9. and 9. La Porte—First National Bank Ito4. Griswold—Griswold National Bank.. 1 to 7 and 9. Liberty—Union County National Ito3. Ha warden—First National Bank 1,2,3, 5 to 8. Bank. Humbolt—First National Bank Ito4. Logansport— Independence—First National Bank.. 1 to 4. City National Bank 1 to 8. Indianola—First National Bank 1 to 3. First National Bank Ito8. Kanawha—First National Bank Ito3. Lowell—First National Bank in 1 to 7. Keokuk—Keokuk National Bank Ito9. Lowell. LeMars—First National Bank Ito3. Marion— Linn Grove—First National Bank.... 1 to 9. First National Bank Ito4. Manchester—First National Bank Ito4. Marion National Bank Ito9. Marengo— First National Bank Ito4. Michigan City—Merchants National Ito9. Marshalltown—First National Bank.. Ito3. Bank. Mulford—First National Bank Ito3. Mishawaka—First National Bank Ito4. Montezuma—First National Bank 1 to 4. Monrovia—First National Bank Ito4. Muscatine—First National Bank Ito9. Montpelier—First National Bank Ito9. Newell—First National Bank Ito9. Muncie—Delaware County National Ito9. New Sharon—First National Bank... Ito7. Bank. Newton—Clark National Bank Ito9. New Carl:sle—First National Bank.. Ito3. Odebolt—First National Bank Ito4. Newcastle—First National Bank Ito9. O skaloosa—O skaloosa N ational B ank.Ito3. Peru—First National Bank Ito9. Paullina—First National Bank 1 to 7 and 9. Richmond- Perry—Perry National Bank Ito9. First National Bank 1 to 9. Peterson—First National Bank 1 to 4. Second National Bank Ito4. Red Oak—First National Bank Ito4. Rochester—First National Bank 1 to 5,7, and Remsen—First National Bank Ito8. 9. Rippey—First National Bank 1,2,3, 5 to 8. Rockville—Rockville National Bank. 1 to 4. Rockwell City—Rockwell City Na- jIto9. Rushville— tionalBank. Rush County National Bank Ito4. Royal—Citizens National Bank !Ito3. Rushville National Bank Ito4. Ruthven—First National Bank Ito8. Russiaville—First National Bank 1 to 3. Shenandoah—Farmers National Bank Ito9. Shelbyville—Farmers National Bank Ito9. Sibley—First National Bank 1 to 3. Sheridan- Sidney—National Bank of Sidney Ito9. Farmers National Bank Ito8. Sioux City- First National Bank 1 to 4. Continental National Bank Ito7. South Bend—First National Bank... 1 to 4. First National Bank Ito9. Digitized forS wFRayAzeSeE—RF irst National Bank 1 to 9. Sioux National Bank Ito9. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIDUCIARY POWERS. 311 Powers Powers granted. granted. DISTRICT NO. 7—Continued. DISTRICT NO. 7—Continued. IOWA—continued. WISCONSIN— continued. Sioux Rapids—First National Bank. Ito3. Racine- Spencer—First National Bank Ito9. First National Bank 4. Stanton—First National Bank Ito4. Manufacturers' National Bank... Ito9. Storm Lake—Citizens National Bank Ito9. Ripon— Story City—First National Bank.... Ito4. American National Bank Ito9. Washington—Washington National Ito4. First National Bank Ito9. Bank. Shawano—Wisconsin National Bank. Ito8. Waterloo- Sparta—Farmers National Bank Ito9. Commercial National Bank Ito4. Viroqua—First National Bank Ito9. Leavitt & Johnson National Bank Ito4. Waukesha—National Exchange Bank 1 to 4. Waverly—First National Bank Ito4. West Bend—First National Bank Ito9. Webster City- Farmers National Bank Ito4. DISTRICT NO. 8. The First National Bank 1 to 9. ARKANSAS. MICHIGAN. Batesville—First National Bank 1 to 7 and 9. (See also District No. 9) El Dorado—First National Bank 1 to 9. Fordyce—First National Bank 1 to 4. Battle Creek- Fort Smith- Central National Bank Ito4. First National Bank Ito9. City National Bank Ito8. Merchants National Bank Ito9. Old National Bank Ito9. Hot Springs- Bay City—First National Bank 1 to 4. Arkansas National B,ank 1 to 9. Benton Harbor—Farmers and Mer- Ito9. Citizens National Bank Ito3,5to9. chants National Bank. Jonesboro—rFirst National Bank.... Ito9. Birmingham—First National Bank... Ito4. Lake Village—First National Bank. Ito9. Boyne City—First National Bank Ito3. Little Rock- Detroit—National Bank of CommerceIto8. England National Bank Ito9. Flint—First National Bank Ito4. Exchange National Bank Ito9. Grand Rapids— Marianna—Lee County National 1 to 4. Grand Rapids National City Bank Ito9. Bank. Old National Bank 1 and 4. Mena—First National Bank 1. Hillsdale—I irst National Bank 1 to 4. Newport—First National Bank Ito8. Jackson- Texarkana— State National Bank... Ito9. National Union Bank Ito9. Peoples National Bank Ito9. ILLINOIS, Kalamazoo—First National Bank Ito9. Lansing- (See also District No. 7.) Capital National Bank Ito4. City National Bank Ito9. Anna—First National Bank Ito4. Muskegon— Belleville- Hackley National Bank 1 to 7 and 9. First National Bank 1 to 8. Union National Bank Ito9. St. Clair National Bank Ito9. Petoskey—First National Bank Ito4. Breese—First National Bank Ito9. Pontiac—National Bank of Pontiac.. 1 to 9. Cairo—Cairo National Bank 1 to 9. Port Huron—First National Ex- Ito4. Carlinville—Carlinville National Ito9. change Bank. Bank. Rochester—First National Bank Ito4. Carlyle— First National Bank 1 to 9. Saginaw—Second National Bank... Ito8. Edwardsville—Ed wards ville Na- 1,2,3,5,6,7, Traverse City—First National Bank.. Ito3. tional Bank. and 9. Jacksonville—Ayers National Bank. Ito4. WISCONSIN. Marion—First National Bank Ito9. Metropolis—City National Bank Ito4. (See also District No. 9.) Mount Sterling—First National Bank. Ito4. Murphysboro—First National Bank.. Ito8. Antigo— Nashville- First National Bank Ito8. Farmers & Merchants National 1 to 9. Langlade National Bank 1 to 3, 5 to 8. Bank. Appleton—Citizens National Bank.. Ito9. First National Bank Ito9. Beaver Dam—Old National Bank... 1 to 4. Nokomis—Nokomis National Bank.. Ito3. Clintonville—First National Bank... Ito4. O'Fallon—First National Bank Ito9, Darlington—First National Bank Ito8. .Pittsfield—First National Bank Ito9. Edgerton—First National Bank 1 to 8. Quincy—Ricker National Bank Ito9. Fond du Lac- Sparta—First National Bank 1 to 3, 5 to 7. Commercial National Bank Ito9. Vandalia— First National Bank Ito8. First-Fond du Lac National Ito8. Bank. Hartford—First National Bank 1 to 7 and 9 INDIANA. Janesville—First National Bank Ito4. (See also District No. 7.) Manitowoc—National Bank of Mani- Ito9. towoc. Bedford—Bedford National Bank Ito3,5to9. Marinette—First National Bank Ito9. Evansville— Milwaukee— City National Bank Ito4. Marine National Bank Ito9. Old State National Bank Ito9. National Bank of Commerce Ito9. Farmersburg—First National Bank.. lto 6 and 8. National Exchange Bank Ito9. JefEersonville—First National Bank.. Ito9. Monroe—First National Bank Ito4. Mitchell—First National Bank lto 4. Neenah—National Manufacturers 1 to 3. Mount Vernon—First National Bank. lto 8. Bank. New Albany—New Albany National 1 to 9. Oshkosh—City National Bank , Ito4. Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 REPORT OF THE FEDERAL RESERVE BOARD. Powers Powers granted. granted. DISTRICT NO. 8—Continued. DISTRICT NO. 9. INDIANA—continued. MICHIGAN. I Orleans—National Bank of Orleans.. (See also District No. 7.) Princeton- Farmers National Bank 1,2,3,5,6,7, Manistique—First National Bank Uo4. and 9. 1 to 9. Peoples American National Bank. 1 to 8. Menominee—First National Bank Ito3. Seym F o ir u s r t — National Bank 1 to 9. Negaunee—Negaunee National Bank. Seymour National Bank Ito9. Sullivan—National Bank of Sullivan. 1 to 7 and 9. MINNESOTA. 1 toS. Tell City—Citizens National Bank... Ito4. Albert Lea—First National Bank i, 2, 3, 5, 6, 1, and 9. KENTUCKY. Argyle—First National Bank Austin— Ito9. (See also District No. 4.) Austin National Bank 1 to 8. First National Bank 1 to 9. Bowling Green—American National 1 and 4. Bemidji—First National Bank 1,2,3, and 5. Bank. Blooming Prairie—First National Danville- Bank. Ito5. Citizens National Bank Ito9. Chatfield— First National Bank 1 to 8. Farmers National Bank 1 to 8. Crookston—Merchants National Elizabethtown—First-Hardin N a - Ito9. Bank. tional Bank. Duluth— Ito8. Glasgow—Farmers National Bank... Ito4. American Exchange National Harrodsburg—First National Bank.. Ito9. Bank. 1 to 9. Henderson—Henderson National 1 to 9. City National Bank 1 to 8. Bank. First National Bank 1 to 9. Hopkinsville—First National Bank.. Ito9. Minnesota National Bank Ito9. Lawrenceburg— Northern National Bank Ito3,5to9. Anderson National Bank 1 to 3, 5 to 9. Eveleth—First National Bank 1 to 8. Lawrenceburg National Bank Ito8. Fergus Falls—Fergus Falls National Lebanon— Bank. Ito3. Citizens National Bank Ito4. Lanesboro—First National Bank 1, 2, 3, 5, 6 Marion National Bank Ito4. Little Falls—First National Bank 8, and 9. Louisville— Minneapolis— First National Bank Ito9. Metropolitan National Bank 1 to 9. Louisville National Bank 4. Midland National Bank Ito8. National Bank of Kentucky Ito9. Minneapolis National Bank Ito9. Mayfield—First National Bank Ito8. Northwestern National Bank 4. Morganfield—Morganfield National Ito4. Northfield—Northfleld National Ito9. Bank. Bank. Murray—First National Bank Ito9. Owatonna— Paducah— First National Bank Ito9. City National Bank Ito9. National Farmers Bank 1 to 3, 5 to 9. First National Bank Ito3. Red Wing—Goodhue County Na- 1 to 9. tional Bank. MISSISSIPPI. St. Peter—First National Bank 1 to 8. Stillwater—First National Bank 1 to 9. (See also District No. 6.) Waseca—Farmers National Bank.... Ito9. Welcome—Welcome National Bank.. lto$. Greenville—First National Bank Ito4. Wells—First National Bank Ito9. Greenwood—The First National 1. Windom—First National Bank Ito9. Bank. Winona—Winona National Bank 1 to 9. MISSOURI. (See also District No. 10.) Billings— MONTANA. Montana National Bank Ito9. Carrollton—First National Bank Ito8. Yellowstone-Merchants National 1 to 9. Chillicothe—First National Bank Ito9. Bank. Colu B m o b o ia n — e County National Bank... Ito4. Bo B z a em nk a . n—Commercial National Ito4. Han E ni x b c a h l— ang H e a N nn a i t b io a n l a N l a B ti a o n n k al Bank I I t t o o 4 9 . . Gr B e a a n t k F . alls—Great Falls National 1 to 4. Jefferson City—First National Bank Ito9. Kalispell— First National Bank Ito4. K Ri i d rk g s e v w il a le y — — C F i i t r i s z t e n N s a N tio a n ti a o l n B al a n B k a n — k. I I t t o o8 9 . . M Le i w le i s s t C ow it n y — - First National Bank Ito7. St. Louis- Commercial National Bank Ito9. First National Bank Ito4. First National Bank Ito9. Merchants-Laelede National Ito4. Missoula— Na B ti a o n n k a . l Bank of Commerce.... Ito9. W Fir e s s t t e N rn a t M ion on al ta B n a a n N k ational Bank. 1 to 7 and 9. State National Bank Ito9. 1 to 8. Sedalia—Citizens National Bank Ito4. Springfield—Union National Bank.. Ito4. NORTH DAKOTA. Versailles—First National Bank Ito3. Ellendale— First National Bank Ito4. TENNESSEE. Fargo^— First National Bank Ho 9. (See also District No. 6.) Merchants National Bank Ito9. Security National Bank Ho 9. Memphis—Central State National Ito4. Forman—First National Bank Ito3. Bank. Grand Forks—First National Bank. ltott. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIDUCIARY POWERS. 313 Powers granted. DISTRICT NO. 9—Continued. DISTRICT NO. 10—Continued. NORTH DAKOTA—continued. COLORADO—continued. Minot— Loveland— U Se n c i o o n n d N N a a ti t o io n n a a l l B B a a n n k k .. . 1 to 9. First National Bank. 1 7 to . 4,6, and 1 to 7 and 9. Loveland National Bank Ito7. Montrose—Montrose National Bank.. Ito9. SOUTH DAKOTA. Sterling—Logan County National 1 to 9. Aberdeen—Aberdeen National Bank. Ito4. Bank. Arlington—First National Bank 1 to 4. Tellunde—First National Bank Ito8. Brookings—First National Bank Ito9. Trinidad— Canton—First National Bank Ito9. First National Bank Ito3. Colinan—First National Bank 1 to 4. Trinidad National Bank Ito9. Flandreau—First National Bank Ito3. Walsenburg—First National Bank... Ito9. Lake Preston—First National Bank..|Ito4. Rapid City—First National Bank 1 to 7 and 9. KANSA.S. Sioux Falls— Anthony—First National Bank Ito4. Minnehaha National Bank 1 to 4. Coffeyville— First National Bank Security National Bank Ito4. Empona— 1 to 3 and 5. Sioux Falls National Bank 1 to 8. Citizens National Bank 1 to 9. Spearfish—American National Bank . Ito3. Commercial National Bank & Ito9. Vermillion—First National Bank 2 to 9. Trust Co. Watertown—First National Bank Ito9. Fort Scott—Citizens National Bank.. 1 to 7 and 9. Webster—First National Bank Ito3. Goodland—Farmers National Bank.. Ito4. Great Bend—First National Bank... Ito9. Horton—First National Bank 1 to 4. WISCONSIN. Hutchinson—First National Bank... Ito4. (See also District No. 7.) Independence—Commercial National Ito9. Bank. Ashland— Jewell City—First National Bank 1 to 3. Barr A N on s o h — rt l h a F n e i r d r n s N t N N a a t a i t o i t o i n o n a n a l a l B l B a B a n a n k n k k 1 1 It o t t o o 9 7 3 . . and 9. O P L L i a u t t t w t r a s a w b r y e u a — n r — c g e F — — P ir e N s o L t p a a N l t w e io a s r n e t i N n a o c l a n t e a B i l N o a B n a n a a t k i l n o B k n o a a f l n B k C a o n m k - . I I I I t t t t o o o o 9 4 3 8 . . . . Supe U F ri i n o rs r it — t e d N a S t t io at n e a s l N B a a t n io k nal Bank 1 It o to 9 . 7. Pr m at e t— rce F . irst National Bank. Ito9. Sabetha—National bank of Sabetha.. Ito4. Salina— DISTRICT NO. 10. Farmers National Bank Ito4. Nation al Bank of America Ito9. COLORADO. Topeka—Farmers National Bank Ito4. Trov—First National Bank Ito3. Akron—First National Bank Ito4. Wellington—First National Bank-... Ito9. Boulder- Wichita—First National Bank 1 to 9. Boulder National Bank 1 to 4. Winfield—First National Bank 1 to 9. Citizens National Bank Ito7. Canon City—Fremont County Na- Ito4. MISSOURI. tional Bank. Center—First National Bank Ito4. (See also District No. 8.) Colorado Springs- Cameron—First National Bank Ito3. Colorado Springs National Bank. 1 to 9. Carthage-^Central National Bank Ito3. Exchange National Bank Ito9. Kansas City- First National Bank Ito9. Columbia National Bank 1 to 4 and 9. Craig—Craig National Bank Ito9. Commonwealth National Bank .. 1 to 7 and 0. Denver- Continental National Bank of Ito9. Colorado National Bank 1 to 9. Jackson County. Denver National Bank Ito9. Drovers National Bank Ito4. First National Bank Ito9. Fidelity National Bank & Trust Ito9. Hamilton National Bank Ito9. Co. Stock Yards National Bank Ito9. First National Bank Ito4. United States National Bank Ito9. Interstate National Bank Ito9. Eagle—First National Bank of Eagle 1 to 4. New England National Bank Ito9. County. King City—First National Bank & 1 to 9. Englewood—First National Bank Ito4. Trust Co. Fort Collins- Maryville^-First National Bank 1 to 5. First National Bank Ito4. Neosho—First National Bank Ito9. Fort Collins National Bank Ito9. St. Joseph- Poudre Valley National Bank 1 to 7 and 9. American National Bank , Ito4. Fort Morgan—First National Bank. . Ito4. Burnes National Bank Ito4. Grand Junction—Grand Valley Na- Ito9. Tootle Lacy National Bank Ito8. tional Bank. Greeiey— NEBRASKA. First National Bank 1 to 9. Greeiey National Bank 1 to 9. Belden First National Bank 1 to 3,5 to 9. Union National Bank Ito4. Butte— First National Bank 1 to 3. Gunnison—First National Bank Ito9. Columbus—First National Bank Ito9. Hugo—First National Bank 1 to 3. Decatur—First National Bank Ito3. Idaho Springs—First National Bank. Ito4. Emerson—First National Bank Ito8. Lamar— Lamar National Bank Ito9. Lyons—First National Bank Ito3. Las Animas—First National Bank... Ito9. Nebraska City—Nebraska City Na- Ito9. Longmont—American National Bank Ito9. tional Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 REPORT OF THE FEDERAL RESERVE BOARD. 1 Powers Powers granted. granted. DISTRICT NO. 10-Continued. DISTRICT NO. 10—Continued. NEBRASKA—continued. WYOMING—continued. Norfolk—Norfolk National Bank Ito3. Rawlins— Omaha- First National Bank 1 to 9. First National Bank Ito4. Rawlins National Bank Ito3. Merchants National Bank 1 to 4. Rock Springs— United States National Bank 4. First National Bank Ito8. Ord—First National Bank 1 to 4. Rock Springs National Bank 1 to 9. Pender—First National Bank l,and 3 to 7. Sheridan—First National Bank Ito9. Randolph—First National Bank Ito9. Shoshoni—First National Bank 1 to 8. South Omaha—Stock Yards National 4. Thermopolis—First National Bank... 1 to 9. Ut T i l c a- a n — ir First National Bank 2 and 3. DISTRICT NO. 11. ARIZONA. NEW MEXICO. (See also District No. 12.) (See also District No. 11.) Nogales—First National Bank 1 to 8. Gallup—National Bank of Gallup 2 and 3. Tucson— Las Vegas—First National Bank Ito9. Arizona National Bank 1 to 9, Raton—First National Bank 1 to 7 and 9. Consolidated National Bank 1 to 4. Santa Fe—First National Bank 1 to 9. LOUISIANA. OKLAHOMA. (See also District No. 6.) (See also District No. 11). Shreveport— Ada—First National Bank 1 to 7. Commercial National Bank 1 to 4. Bartlesville—First National Bank Ito8. First National Bank 1 to 4. Enid—American National Bank Ito9. Hominy- NEW MEXICO. First National Bank 1 to 3, 5 to 9. National Bank of Commerce Ito9. (See also District No. 10.) Lawton— Albuquerque- City National Bank 1 to 3,5 to 7, First National Bank 1 to 7 and 9. and 9. State National Bank 1 to 4. First National Bank 1 to 9. Carlsbad—First National Bank 1 to 9. Roswell— American National Bank 1. Citizens National Bank 1 to 3. First National Bank 1 to 3, 5 to 7. First National Bank Ito3. Muskogee—First National Bank Ito9. Silver City—Silver City National 1 to 6, 8, Oklahoma City- Bank and 9 American National Bank 1 to 3, 5, 7 to TEXAS. Farmers National Bank 1 to 4. Abilene—Citizens National Bank 1 and 2. First National Bank... 1 to 9. Amarillo—First National Bank 1 to 4. Liberty National Bank Ito9. Austin—American National Bank Ito3. Security National Bank 1 to 8. Beaumont—First National Bank 1 to 4. Southwest National Bank.. 1 to 9. Bonham—First National Bank 1 to 3. Pond Creek—First National Bank... 1 to 4. Brenham—First National Bank 1 to 7 and 9. Sallisaw—First National Bank 1 to 3, 5 to 7. Brownsville—Merchants' National 1. Bank National Bank of Commerce 1 to 3. Brownwood—Citizens NationalBank 1 to 9. Shawnee National Bank Ito9. Cameron—Citizens' National Bank.. 1 to 9. Tulsa— Colorado—City National Bank 1 to 4. Central National Bank Ito9. Corsicana—Corsicana National Bank. 1 to 4. Exchange National Bank 1 and 4. Dallas- First National Bank 1, 2, 4. American Exchange National 1 to 9. Woodward—First National Bank 2 and 3. Bank. City National Bank 1 to 9. WYOMING. Dallas National Bank 1 to 9. National Bank of Commerce Ito4. Basin—First National Bank 1 to 7. Denison—State National Bank 1 to 9. Buffalo—First National Bank 1 to 4. El Paso— Casper— City National Bank 1 to 9. Casper National Bank 1 to 4. First National Bank 1 to 7 and 9. National Bank of Commerce 1 to 7. State National Bank 1 to 9. Wyoming National Bank 1 to 4. Fort Worth- Cheyenne—• Farmers & Mechanics National 2 to 9. American National Bank 1 to 9. Bank. Citizens National Bank . 1 to 9. First National Bank 1, 2, and 4. First National Bank 1 to 9. Fort Worth National Bank 1 to 4. Stock Growers National Bank 1 to 9. Stockyards National Bank 1 to 4. Cody—Shoshone National Bank . 1 and 4. Galveston—First National Bank 1 to 4. Evanston—First National Bank 1 to 3. Granger—First National Bank 1 and 2. Kemmerer—First National Bank Ito4. Greenville—Greenville National Ex- Ito4. Laramie—First National Bank Ito3. change Bank. Powell- Houston—National Bank of Com- 1 to 7 and 9. First National Bank 1 to 8. merce. Powell National Bank Ito4. McKinney—First National Bank Ito4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIDUCIARY POWERS. 315 Powers Powers granted. granted. DISTRICT NO. 11—Continued. DISTRICT NO. 12—Continued. TEXAS—continued. Marshall- Tonopah—Nevada First National First National Bank Ito3. Bank. Marshall National Bank Ito4. Orange—First National Bank Ito9. OREGON. P P a o l r e t s A tin r e th — ur R — oy F a ir l s N t N at a io ti n o a n l a B l a B n a k nk... I I t t o o4 4 . . C A o sh rv la a n ll d is — — 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 It o to 4 9 . . San C S F A a i e n r n n s g t t A e r l N a o n l — g a N t e i l a o o t n i N o a n l a B a ti l a o B n n a k a n l k Bank I I I t t t o o o 9 3 4 . . . E H G u a r S g a r o r n e i u n s ts t b e h — u P e r a r g n F s — s i — O rs F r t F e i N r g i s r o a t s n t t N i . N o a n a t a i t o i l o n B n a a a l n l B B k a a n n k k . o .. f I I 1 t t , 7 o o 2 , 3 4 , a . . 3 n , d 5 9 , . 6, S S S e a h a n e l C M N y L r A — m o o a e n c m t r a t S i k o c o m n w e h n n a - i a e o l o a n y r o l — c t d B N s ia N a l a & n N t a i k o t a P i n t o o l i a a n o f l n a n C B t l a e o B a l r m n s B a m k n a N k n e a r k c ti e onal I I I I I t t t t t o o o o o 3 9 9 9 4 . , . . . 5to8. J M M M O u n C a e i n l t r d t o c a s o f f o t r o t n i i f s r o o i — d e n — B — ld F C a — F M i y i r i t . s r e y F t s d — t N i f o r N s a r F t d a t i i r t o N i s N o n t a a n a N t t i l a i o a B l o B n t n i a a o a a n l n n l k B a k B l a a B n n k a k n . o . k . f . 2 I I I 1 t t t , a 7 o o o 2 n , 4 9 9 , d a . . . 3 n 3 , d . 5 9 , . 6, T St e B a x n a a t n r o k k B n a . — a n n a F k — i . r T st e N xa a r t k io an n a a l Ba N nk ational I It t o o3 9 . . Pend A F le i m r t s o e t n r N i — ca a n ti o N n a a t l i o B n a a n l k Bank I 1 t o to 4 4 . . W V T T y r i a c o le c t u o r o p — r — i — a C — F F i i t r i V i r s z s t i e t c N n t N o s a r a N t i i t a o i a o N n t n i a o a a l t n l i B a o B a l n a n B a n k l a k B nk ank I I 1 I t t t . o o o 8 4 3 . . . S P a o le r U F t m l i a n — r n s it t d e C N d - a p a S i t t t i a a o l t n e N a s l a N B ti a o a t n n io a k l n B al a B nk ank... I I I t t t o o o 9 9 4 . . . Waxahachie—Citizens N ational B ank Ito9. Wichita Falls- UTAH. City National Bank 1 to 9. Firct National Bank Ito9. Salt Lake City- Continental National Bank Ito4. DISTRICT NO. 12. Deseret National Bank Ito4. ALASKA. WASHINGTON. Fairbanks—First National Bank Ito9. Bellingham— CALIFORNIA. Bellingham National Bank 1 to 4. C B a a l k e e x r i s c E o e — ld F — irs F t i r N st a N tio a n ti a o l n B al a B nk a — nk.... 4 It . o9. C Co la lf r F a k x s ir — to st n F N — ar a m F ti i e o r r s n s t a N N l B a a t t a i i o o n n n k a a l l B B a a n n k k , I I 1 t t o o to 9 4 . . 5 and 9. Chic B o F — i u r t s t t e N C a o t u io n n ty al N B a a t n io k nal Bank 1 1 t t o o 9 8 . . El B le a n n sb k u . rg—Washington National Ito3. M L Fu o t o i l s u l o C F e n A n r a o B t t a n r a o n m g l a i n t B n e n i — e n l k e a V r e s n s . F n — i k e a t & a w . rm l — N M er a F e s t r i i & c r o s h n t a M N a n l a t e B s t r i c a o N h n n a a k a n t l i B t o s a n N n a a k l - 1 4 4 4 . . . to 9. H E P M P P O a u o v o r t s o l r e . q l c t v r m V u c e i A i — l t e a a l t n e r n m — n — g F — o — e i F r n l F e s F i — F i r s t i r s — r i s N t r s F t s t a N F i N t r N t i s N i a r a o t s a t t a i n t N t i o i o t a N o i n a n o l n t a a a B n i a l o t l a a l i B n B l o n B a a B a n k a l n n a a n B k k n l k B a k n a k n . k . . . . . I I I I I I 1 t t t t t t o o o o o o to 9 9 9 9 7 3 . . . . . . 9. S P O S O R l a a e a r e o n c l d k a a f C N r A B w l s n F M a a a a a d m o a n m r n p n — t o a a d t i e i t e k n d o — o e t r n F a n i c n o C o c l t i — i C a a o r f s i N C l s t n e c - C B y t F o a n o N — a N a u t i t - r i r l n n a i o s a a F f k t t t l n o t y i i i N N o a r r o o . s n l n f a n a t i B a t a D t a N i i l , a l o o . a B N B n n n O t k a i a . a a . o n l l n A M n B k B k a i a a l l l n B n s k k & an . . k C ,. o. 4 1 4 4 I I I I t t t t . . . t o o o t o o o 9 3 9 9 9 , 7 . . . . a 5 n , d 7 9. Sea N U N S S D M M F tt e e i n a a l e r a e a a e t i x t s r t b o t i i - r t i t t o o o n o e n l N n e n a r p e N a r a o N a H N d l l a t l i C a i B o a t N t o t i a r t i a i o n i t a t n o o o n y n a t n i N n n k a l o B a a B l a n N o l a l B t a a B f n B i a n a l o C k a t a n k B n i n o n k o a a k m k l n n m B a k l a e B n rc k a e nk... I 1 1 I 1 I 1 I 1 t t t t 7 t o o o o t t t t o o o o o . 9 9 9 4 4 . . 7 9 . . 9 9 , . . . 6 a , n a d n d 9. Sant C F a i o C r B u s o a t n . r t N . b y a a r N t a io — a n ti a o l n B al a n B k ank & Trust I I t t o o 9 9 . . T Sp a o c k o E O F a m i x l n d d c e a e h — — N l a it a n N y t g i a N e o t n i N a o a t n a i l o a t B i n l o B a a n n l a a k n B l k a B n o a k f n T k acoma.. 1 I I I t t t t o o o o 9 9 9 9 . . . . V W Sa i T s i n l a r m t l u a i i a s n P — t g a C t u F o o l n i a . r — — st N F F i i a r r s s ti t t o N N n a a a t t l i i N o o n a n n a a l k l B B a a n n k k & ... 4 4 1 . . to 9. W V To a B a n p l a c p la n o e k u n W . v is e a h l r — l a— — Fir V st a N nc a o ti u o v n e a r l B N a a n ti k onal I I t t o o 4 9 . . Baker-Boyer National Bank Ito9. Boi B F se i o r - i s s t e N C a i t t i y o N n ID a a A l t B H io O a n . n a k l B of a n Id k aho.... I I t t o o 9 5 . . Yak T i F m i h r a i s r — t d N Y N a a a t k i t o i i o m n n a a a l l N B B a a a t n i n k o k nal Bank I I , t t o o 3 9 9 , . . and 4. Hagerman—First National Bank 1. Hailey—Hailey National Bank Ito3. HAWAIIAN ISLANDS. Moscow—First National Bank Ito4. Payette— First National Bank Ito9. Honolulu—First National Bank of Ito8. Weiser—First National Bank Ito9. Hawaii. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUMMARY OF ANSWERS TO QUESTIONNAIRE SENT OUT BY FEDERAL RESERVE BOARD ON EXERCISE CO OF FIDUCIARY POWERS BY NATIONAL BANKS. TotaU Alabama. Arkansas. California. Colorado. Connecticut. Florida. Georgia. Idaho. Banks having trust powers 1,387 17 15 22 38 32 12 15 7 Replies to questionnaire 1,301 15 12 19 37 32 12 15 7 No trust department 411 2 4 8 7 2 7 5 1 Question 1. Have you advertised for or in any way solicited trust business? 3 Number of replies 879 Yes .... 658 No 221 Question 2. In general terms, what success have you had in the operation of your trust department? Number of replies2 841 Good or excellent.. 128 Satisfactory or fair. 337 Doubtful Very little None 180 I Question 3. In how many instances have you acted in any of the following capacities? Number of replies 794 25 Number of times acted as: Trustee 3,652 245 122 Executor 512 46 12 Administrator 876 42 22 Registrar 1,252 31 37 Guardian 1,494 26 20 Assignee 19 0 3 Receiver 49 1 4 Committee 109 0 2 Other capacities 384 38 8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Question 4. In general terms, what additional business of this character is in prospect for your institution? Number of replies2 777 11 6 11 28 24 1 9 6 Good...*.....;.. 210 3 3 2 7 9 0 0 1 Doubtful 106 0 0 2 3 1 0 2 0 None 162 3 3 0 5 3 1 4 3 Question 5. Please indicate for your bank the following data as of any recent date: Number of replies. 782 12 10 25 24 Amount of: Trust funds.. $825,909,545.73 $6,361,323.52 $1,053,702.44 $6,919,535.47 $5,251,416.96 $7,574,690.38 $25,581.46 $325,598.16 $34,950.00 Collateral trust bonds $413,099,846.71 $812,100.00 0 $1,220,000.00 $6,900.00 0 0 $100,000.00 0 Mortgage bonds $546,612,962.03 $4,309,950.00 $20,000.00 $13,891,500.00 $4,917,900.00 $719,000.00 0 0 $453,643.00 Estates willed: Number stating value 252 9 10 0 0 Total value stated. $313,927,896.45 $11,050,000.00 $200,600.00 $45,631,500.00 $6,275,000. CO $8,700,000.00 0 0 $2,650,000.00 Number unable to estimate. 140 0 5 9 0 3 1 o Question 6. In your opinion, does the trust department bring new business into the bank? Number of replies* 778 12 I 11 27 24 3 10 5 Yes 515 8 9 15 18 1 6 4 No r- 132 3 1 1 10 5 2 3 0 Doubtful . . 88 0 1 2 1 0 0 0 Question 7. In your opinion, is it valuable in assisting you to retain the accounts of your bank customers which otherwise might be diverted to competing trust companies? Number of replies2 . 756 12 s6 11 27 25 4 10 6 Yes 563 10 11 22 23 1 8 3 No 70 2 o 1 2 1 0 Doubtful 59 0 0 0 0 0 0 0 1 No competing trust companies. 44 0 0 0 0 0 1 1 Question 8. Do your customers seem to appreciate and value the additional facilities offered them through your trust department? Number of replies2 736 10 5 10 25 22 3 9 4 Yes 521 7 3 9 18 18 2 2 3 No 93 2 0 o 5 1 4 1 Doubtful 66 0 0 1 0 0 0 0 0 1 Totals include figures for Alaska, Arizona, Delaware, District of Columbia, Illinois, Louisiana, Nevada, Rhode Island, and Utah, for which no separate figures are shown. CO 3 Totals include some miscellaneous replies which could not be classified. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUMMARY OF ANSWERS TO QUESTIONNAIRE SENT OUT BY FEDERAL RESERVE BOARD ON EXERCISE OF FIDUCIARY POWERS BY NATIONAL CO RANKS—Continued. 00 Question 9. What, if any, difficulty have you had with the courts in receiving appointments to act in fiduciary capacities and in qualifying under appointments made by individuals? Total. Alabama. Arkansas. California. Colorado. Connecticut. Florida. Georgia. Idaho. Number of replies3 771 12 6 9 29 22 4 9 5 None . 675 12 6 9 26 16 4 9 5 Difficulties 44 0 0 0 1 4 0 0 0 O Question 10. What other difficulties, if any, have you encountered in the operation of your trust department. Number of replies 2 675 None 521 Difficulties with State authorities 7 0 ! 0 I Need of standard accounts 10 0 0 I Opposition by lawyers 19 0 ! 0 ! Otner practical difficulties 55 0 i IS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Illinois. Indiana. Iowa. Kansas. Kentucky. Maine. Maryland. Massachusetts. Michigan. Banks having trust powers 70 72 73 24 31 12 14 70 26 Replies to questionnaire 63 66 72 21 25 12 14 70 27 No trust department 21 12 17 o 5 3 7 21 8 Question 1. Have you advertised for or in any way solicited trust business? Number of replies.. 19 Yes 17 No 2 Question 2. In general terms, what success have you had in the operation of your trust department? Number of replies2. 45 19 Good or excellent.. 3 9 Satisfactory or fair. 16 8 d V D e o r u y b t l f i u tt l le 2 8 0 1 o None 9 0 Question 3. In how many instances have you acted in any of the following capacities? o N N u u m m b be e r r o o f f r ti e m pl e ie s s acted as: 36 18 m Trustee 168 76 47 182 149 Executor 21 19 8 22 21 Administrator 64 116 26 10 67 Registrar 21 20 1 296 20 Guardian 95 45 279 5 43 Assignee 0 0 0 0 0 Receiver 3 6 0 1 10 Committee 17 3 14 2 3 Other capacities 61 0 12 1 1 Question 4. In general terms, what additional business of this character is in prospect for your institution? Number of replies2 35 47 1 55 12 19 9 32 19 Good . 12 10 6 4 5 2 9 8 Doubtful 3 7 ! 12 2 7 1 0 1 3 None 13 19 2 7 3 2 9 3 oo » Totals include some miscellaneous replies which could not be classified. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUMMARY OF ANSWERS TO QUESTIONNAIRE SENT OUT BY FEDERAL RESERVE BOARD ON EXERCISE OF FIDUCIARY POWERS BY NATIONAL C to O BAN KS—Continued. O Question 5. Please indicate for your bank the following data as of any recent date: Illinois. Indiana. Iowa. Kansas. Kentucky. Maine. Maryland. Massachusetts. Michigan. Number of replies 37 50 43 10 18 19 Amount of: Trust funds $10,723,668.10 $1,881,855.63 $520,145. 80 $249,657. 66 $864,071.28 $264,145.34 $110,723.10 $15,417,466.32 $7,143,160.52 2 Collateral trust bonds $353,000.00 $1,389,700.00 $422,500.00 $17,500. 00 $100,000.00 $310,000.00 $45,000.00 $5,125,000.00 $1,149,450.00 Mortgage bonds $4,780,610.00 $73,100.00 $309,000.00 0 $634,225.00 $644,000.00 $100,000.00 $38,489,400.00 $ ,179,700.00 Estates willed: Number stating value 17 16 13 6 6 12 Total value stated $9,240,000.00 $3,808,821.45 $3,540,000.00 $2,216,000. 00 $1,640,000.00 $420,000.00 $159,000.00 $3,255,000.00 $8,553,000.00 Number unable to estimate 7 0 5 2 0 M Question 6. In your opinion, does the trust department bring new business into the bank? Number of replies2, 10 17 9 6 39 19 Yes. 6 10 4 3 24 15 No 2 1 1 3 11 1 Doubtful 1 5 4 0 4 1 Question 7. In your opinion, is it valuable in assisting you to retain the accounts of your bank customers which otherwise might be diverted to competing trust companies? Number of replies2 32 48 31 12 16 9 6 ! 40 19 Yes . 26 40 9 7 10 4 3 1 27 12 No 2 3 7 2 2 3 2 1 4 1 Doubtful . 2 1 o 1 0 2 1 1 7 2 w No competing trust companies 1 2 2 4 0 0] 2 3 o 5 j Question 8. Do your customers seem to appreciate and value the additional facilities offered them through your trust department? Number of replies2.. 31 i 44 42 10 17 7 6 38 Yes 17 1 25 20 8 9 3 4 27 No 5 i 8 8 1 4 1 1 4 Doubtful 1 ! 5 5 1 1 3 1 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Question 9. What, if any, difficulty have you had with the courts in receiving appointments to act in fiduciary capacities and in qualifying under appointments made by individuals? Number of replies2 19 None Difficulties Question 10. What other difficulties, if any, have you encountered in the operation of your trust department? Number of replies 31 41 40 9 18 6 5 38 18 None 21 29 25 5 14 5 28 12 Difficulties with State authorities 0 o o 0 0 0 0 0 0 Need of standard accounts 0 1 2 1 1 o 0 0 0 Opposition by lawyers.. 2 1 4 1 0 0 0 1 Other practical difficulties 2 1 3 0 2 01 0 5 4 a Totals include some miscellaneous replies which could not be classified. O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUMMARY OP ANSWERS TO QUESTIONNAIRE SENT OUT BY FEDERAL. RESERVE BOARD ON EXERCISE OP FIDUCIARY POWERS BY NATIONAL 00 to B AN KS—Continued. to Minnesota. Mississippi. Missouri. Montana. Nebraska. New sh i H re a . mp- New Jersey. New Mexico. New York. Banks having trust powers 32 7 31 10 16 16 72 9 130 Replies to questionnaire 26 7 26 8 16 15 70 9 127 No trust department 5 2 3 1 9 10 22 3 29 o w Question 1. Have you advertised for or in any way solicited trust business? o Number of replies 21 5 23 7 7 5 48 6 98 N Ye o s 1 2 9 3 2 1 6 7 0 7 4 3 0 5 4 3 5 3 3 8 1 3 5 H Question 2. In general terms, what success have you had in the operation of your trust department? Number of replies2 19 5 19 7 5 5 45 6 95 Good or excellent 1 0 2 1 0 0 4 o 13 Satisfactory or fair 9 4 5 1 0 2 19 5 42 Doubtful 0 0 0 2 0 1 4 1 3 Very little 4 0 0 2 1 7 0 16 None 2 0 3 3 1 10 0 18 Question 3. In how many instances have you acted in any of the following capacities? Number of replies 19 22 I 90 w Number of times acted as: o Trustee 100 12 278 28 12 114 420 Executor 7 0 24 1 o ! 44 51 p Administrator 35 0 17 4 o 37 42 R G e u g a i r s d t i r a a n r 3 1 8 0 1 1 0 3 3 1 7 3 2 0 2 I 2 1 1 8 4 12 4 1 5 Assignee 0 0 0 0 0 ! 1 2 Receiver 0 4 0 0 0 0 3 Committee 2 0 1 0 0 3 21 Other capacities 0 0 0 0 0 115 26 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Question 4. In general terms, what additional business of this character is in prospect for your institution? Number of replies2 18 5 17 6 5 4 40 6 83 Good 9 o 1 1 1 1 20 1 19 Doubtful.. 3 0 0 o 2 3 4 1 11 None 2 5 8 1 2 •0 3 2 9 Question 5. Please indicate for your bank the following data as of any recent date: Number of replies 20 ! 21 43 Amount of: I Trust funds $4,857,204.36 I $58,746.12 $49,879,892.44 $435,800.00 $137,333.00 $1,373,687.96 $21, 765,338.60 $97,298. 00 $621,845,030.97 Collateral trust bonds $231,700.00 ! $3,900.00 $4,588,127.99 0 $100,000.00 0 $540,000.00 0 $328,949,200.00 Mortgage bonds $951,070.00 j $408,000.00 $13,676,200.00 $140,000.00 0 $15,000.00 $6,172,000.00 $125,000.00 $417,293,836.00 Estates willed: Number stating value 0 0 0 25 20 Total value stated $8,789,000.00 ! 0 $57,150,000.00 $3,170,000.00 0 0 $13,803,000.00 $250,000.00 $13,421,000.00 Number unable to estimate o! 0 2 2 1 0 10 0 41 o I Question 6. In your opinion, does the trust department bring new business into the bank? Number of replies2 18 5 17 5 i 82 Yes 14 1 8 2 3 35 51 o N D o oubtful 2 2 2 0 6 3 5 0 Q 1 1 0 1 3 3 31 2 1 1 0 wW. Question 7. In your opinion, is it valuable in assisting you to retain the accounts of your bank customers which otherwise might be diverted to competing trust companies? Number of replies2 20 Yes 14 No 0 Doubtful NTo competing trust companies OC OC 4 15 5 5 4 44 6 86 1 9 3 5 2 42 3 69 2 2 2 0 0 1 0 7 0 4 0 0 0 1 2 8 1 0 0 0 1 0 1 1 2 Totals include some miscellaneous replies which could not be classified. CO to CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUMMARY OF ANSWERS TO QUESTIONNAIRE SENT OUT BY FEDERAL RESERVE BOARD ON EXERCISE OF FIDUCIARY POWERS BY NATIONAL BANKS—Continued. Question 8. Do your customers seem to appreciate and value the additional facilities offered them through your trust department? Minnesota. Mississippi. Missouri. Montana. Nebraska. shire. New Jersey. New Mexico. New York. Number of replies2 . 17 4 16 6 4 3 43 4 84 Yes 12 1 11 3 4 3 36 3 71 No 3 1 4 1 0 0 3 1 5 Doubtful 0 1 1 2 0 0 3 0 6 Question 9. What, if any, difficulty have you had with the courts in receiving appointments to act in fiduciary capacities and in qualifying under appointments made by individuals? w Number of reDlies2 18 5 19 5 7 4 45 6 84 None 15 4 15 5 4 42 4 77 Difficulties 2 0 1 o 2 0 0 1 1 tei Question 10. What other difficulties, if any, have you encountered in the operation of your trust department? Number of replies2 16 4 12 None 14 2 9 Difficulties with State authorities 0 0 0 Need of standard accounts 0 0 Otvnosition bv lawvers 1 1 Othpr •nraotioal difficulties 0 1 ooo 3 3 0 ooo 2 2 0 ooo 4 2 1 ooo 40 6 75 32 4 65 0 0 0 1 0 0 1 0 1 2 2 1 w o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

North Carolina.North Dakota. Oklahoma. Ohio. Oregon. Pennsylvania. South Carolina. 9 to j* R B e a p n l k ie s s h t a o v q in u g es t t r i u o s n t n p a o ir w e ers ... 1 9 0 8 7 2 2 3 4 5 5 8 5 1 1 5 4 N 1 11 3 9 8 1 1 0 1 £3 No trust department. ... 2 3 11 25 7 34 3 1 Question 1. Have you advertised for or in any way solicited trust business? to Number of replies. No-IIIIIIIIIIIIIII! Question 2. In general terms, what success have you had in the operation of your trust department? Number of replies2 . . . 7 4 I 30 7 83 7 Good or excellent 0 1 1 5 1 25 1 Satisfactory or fair 4 1 i 7 14 5 39 1 Doubtful 1 0 i 2 1 0 12 3 Very little 0 0 ! 0 8 0 0 1 None 2 0 i 1 2 1 7 1 O Question 3. In how many instances have you acted in any of the following capacities? Number of replies 6 4 11 28 6 84 6 Number of times acted as: Trustee 1 2 200 458 34 273 29 Executor 1 1 2 9 6 41 6 Administrator 2 4 29 23 89 2 Registrar 0 1 1 128 2 59 5 Guardian 3 0 8 26 8 506 17 Assignee .... . 0 0 0 2 0 2 0 Receiver . 0 0 0 5 1 0 0 ComThittfifi . 0 0 0 4 0 9 1 Other capacities 0 0 0 51 0 32 1 1 Totals include some miscellaneous replies which could not be classified. CO to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUMMARY OF ANSWERS TO QUESTIONNAIRE SENT OUT BY FEDERAL RESERVE BOARD ON EXERCISE OF FIDUCIARY POWERS BY NATIONAL BANKS—Continued. Question 4. In general terms, what additional business of this character is in prospect for your institution? North Carolina.North Dakota. Oklahoma. Ohio. Oregon. Pennsylvania. South Carolina. Number of replies2 - . 5 4 11 30 7 82 7 Good 1 1 6 13 5 21 0 Doubtful 2 0 2 4 0 10 0 N one. .. . 1 1 0 3 0 11 1 n Question 5. Please indicate for your bank the following data as of any recent date: Number of replies 27 Amount of: W Trust funds $38,200.00 $75,000.00 $368,318.41 $21,095,144.51 $1,113,880.36 $10,765,613.64 $213,945.74 Collateral trust funds $20,000.00 $2,219,707.87 §460,000.00 $1,231,575.00 $110,000.00 Mortgage bonds *$6o*666"66" $390,000.00 $6,888,500.00 $16,000.00 $10,253,525.00 $492,100.00 Estates willed: Number stating value 0 12 10 Total value stated $2,100,000.00 $750,000.00 0 $40,182,475.00 $737,000.00 $11,083,000.00 $3,845,000.00 Number unable to estimate. 0 2 5 3 2 1 Question 6. In your opinion does the trust department bring new business into the bank? I Number of re lies2 6 3 11 29 7 73 7 Ye<? 3 2 6 20 6 65 4 No . 1 1 1 3 1 1 1 Doubtful 2 0 3 5 0 6 1 W O Question 7. In your opinion, is it valuable in assisting you to retain the accounts of your bank customers which otherwise might be diverted to competing trust companies? I Number of replies2 Yes No. Doubtful No competing trust companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Question 8. Do your customers seem to appreciate and value the additional facilities offered them through your trust department? Number of replies2 29 Yes 27 i No 1 Doubtful 1 Question 9. What, if any,difficulty have you had with the courts inreceiving appointmentsto act in fiduciarycapacities and in qualifying under appointments made by individuals? 7 11 29 7 81 7 None 6 9 25 5 71 7 Difficulties 0 0 1 0 0 3 0 Question 10. What other difficulties, if any, have you encountered in the operation of your trust department? Number of replies2 11 ! None 8 Difficulties with State authorities. 0 Need of standard accounts 0 Q Opposition by lawyers 0 Other Practical difficulties 3 2 Totals include some miscellaneous replies which could not be classified. i CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUMMARY OF ANSWERS TO QUESTIONNAIRE SENT OUT BY FEDERAL RESERVE BOARD ON EXERCISE OP FIDUCIARY POWERS BY NATIONAL BANKS—Continued. South Dakota. Tennessee. Texas. Vermont. Virginia. Washington. West Virginia. Wisconsin. Wyoming. Banks having trust powers ... 15 11 50 12 37 31 17 33 22 Replies to questionnaires 13 11 49 13 36 28 16 31 22 No trust department 8 6 18 1 10 10 7 20 13 Question 1. Have you advertised for or in any way solicited trust business? Number of replies 5 5 31 12 26 17 9 11 9 Yes . 4 3 22 8 21 11 5 8 6 No 1 2 9 4 5 6 4 3 3 Question 2. In general terms, what success have you had in the operation of your trust department? Number of replies2 . . . 5 Good or excellent 0 Satisfactory or fair 2 Doubtful 1 Very little - . - None oot 3 31 1 5 0 0 1 1 CO CO 12 2 3 5 0 9 oot CO to QO o H o 4 26 18 8 10 9 11 0 2 0 o 8 11 2 0 3 3 0 0 0 0 4 0 4 o 4 4 2 3 6 2 Question 3. In how many instances have you acted in any of the following capacities? Number of replies 4 4 28 11 25 17 4 6 9 Number of times acted as: Trustee . .. 1 34 71 17 81 138 12 4 12 Executor 1 4 16 5 35 17 7 1 Administrator Q 12 13 17 45 21 7 0 1o6 w R G e u g a i r s d t i r a a n r . 0 0 23 3 23 6 4 3 42 5 2 10 0 1 3 2 6 1 6 2 o Assignee 0 0 0 0 6 2 0 0 0 Receiver 0 5 0 0 2 0 0 0 1 Committee o 3 1 0 5 1 0 0 1 Other capacities 0 0 1 0 35 0 o 0 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Question 4. In general terms, what additional business of this character is in prospect for your institution? Number of replies2 26 10 23 15 8 10 8 Good 3 3 4 2 1 3 Doubtful 0 3 ,5 2 2 1 None 5 3 2 1 4 4 Question 5. Please indicate for your bank the following data as of any recent date: Number of replies 26 26 6 i Amount of: Trust funds $3,925,172.68 $4,920,694.85 $679,000.00 $10,368,148.31 | $4,552,921.53 | $1,070,224.34 $60,706.50 $156,968.07 Collateral trust funds $650,000.00 $1,004,300.00 $197,590.00 $60,378,000.00 $833,200.00 0 | 0 I $530,795.85 Mortgage bonds $169,500.00 $2,342,750.00 $902,500.00 $12,173,550.00 $1,000,000.00 i $527,000.00 j $1,094,403.03 Estates willed: Number stating value 1 6 0 14 i ! 1 3 N To u t m al b v e a r lu u e n s a t b a l t e e d to esti- $10,000.00 $1,140,000.00 $27,924,000.00 $2,2 tO, 000.00 §100,000.00 I 1300,000.00 1 $1,042,500.00 mate 1 j Question 6. In your opinion, does the trust department bring new business into the bank? Number of replies2 5 25 10 25 17 6 8 9 Yes 34 5 12 3 19 11 5 4 No 1 0 4 1 1 3 1 3 1 Doubtful 1 0 8 5 2 1 0 0 3 Question 7. In your opinion, is it valuable in assisting you to retain the accounts of your bank customers which otherwise might be diverted to competing trust companies? Number of replies2 4 5 27 10 26 16 8 8 Yes 1 5 17 7 20 12 7 6 No 2 0 4 o 3 2 o n Doubtful . 1 0 4 1 1 1 1 No competingtrust companies.. 0 0 2 0 2 1 0 oot 9 5 2 0 1 * Totals include some miscellaneous replies which could not be classified. Otoo CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUMMARY or ANSWERS TO QUESTIONNAIRE SENT OUT BY FEDERAL RESERVE BOARD ON EXERCISE OF FIDUCIARY POWERS BY NATIONAL CO CO BANKS—Continued. o Question 8. Do your customers seem to appreciate and value the additional facilities offered them through your trust department? South Dakota. Tennessee. Texas. Vermont. Virginia. Washington. West Virginia. Wisconsin. Wyoming. Number of replies2 4 4. 24 10 26 18 7 9 8 Yes 2 3 13 6 20 10 7 7 4 No 1 0 7 1 2 2 0 1 4 Doubtful. 0 1 2 3 2 5 0 1 0 w o H " Question 9. What, if any, difficulty have you had with the courts in receiving appointments to act in fiduciary capacities and in qualifying under appointments made by O individuals? *4 Number of replies2 . 4 4 23 11 23 17 6 g 8 None 4 3 21 23 17 6 8 Difficulties 0 0 2 1 0 0 0 2 0 Question 10. What other difficulties, if any, have you encountered in the operation of your trust department. Number of replies2 4 None 4 Difficulties with State authori- ties . 0 Need of standard accounts..... Opposition by lawyers Other practical difficulties ooo 2 17 1 14 0 1 0 0 1 ooot 8 19 17 | 9 8 7 13 8 ! 6 5 6 0 0 0 ! 1 0 0 o 0 0 1 1 0 0 0 0 0 2 1 0 0 1 3 5| 1 I 2 Totals include some miscellaneous replies which could not be classified. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

KEPORT OF THE FEDERAL RESERVE BOARD. 331 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: Massachusetts—Continued. Hartford- B os ton—Continued. Hartford Aetna National Bank. Old Colony Trust Co. Phoenix National Bank. Second National Bank. New Haven—First National Bank. State Street Trust Co. Norwich—Thames National Bank. Webster & Atlas National Bank. Maine: Dedham—Dedham National Bank. Portland- Fall River—Massasoit-Pocasset National Bank. Canal National Bank. Fitchburg—Safety Fund National Bank. Portland National Bank. New Bedford- Massachusetts: First National Bank. Boston- New Bedford Safe Deposit & Trust Co. American Trust Co. Springfield—Springfield National Bank. Beacon Trust Co. Worcester—Merchants National Bank. Commonwealth Trust Co. Rhode Island: First National Bank. Providence— Fourth-Atlantic National Bank. Blackstone Canal National Bank, International Trust Co. Merchants National Bank. Merchants National Bank. National Bank of Commerce. National Shawmut Bank. Providence National Bank. National Union Bank. DISTRICT NO. 2. Connecticut: New York—Continued. Bridgeport— New York—Continued. Bridgeport Trust Co. Corn Exchange Bank. City National Bank. Equitable Trust Co. First National Bank. Farmers Loan & Trust Co. New Jersey: Fifth Avenue Bank. Hoboken—First National Bank. First National Bank. Newark—National Newark & Essex Banking Garfield National Bank. Co. Guaranty Trust Co. New Brunswick—National Bank of New Jer- Harriman National Bank. sey. Importers & Traders National Bank. Paterson— Irving National Bank. Hamilton Trust Co. Lincoln Trust Co. Paterson National Bank. Mechanics & Metals National Bank. New York: Mercantile Bank of the Americas. Buffalo- Mercantile Trust Co. Citizens Trust Co. National Bank of Commerce. Manufacturers & Traders National Bank. National City Bank. New York- National Park Bank. American Exchange National Bank. New Netherlands Bank. Atlantic National Bank. Pacific Bank. Bankers Trust Co. Seaboard National Bank. Bank of America. Second National Bank. Bank of Manhattan Co. U. S. Mortgage & Trust Co. Bank of New York, N. B. A. W. R. Grace & Co.'s Bank. Central Union Trust Co. Utica— Chase National Bank. First National Bank. Chemical National Bank. Utica Trust & Deposit Co. Columbia Trust Co. DISTRICT NO. 3. Pennsylvania: Pennsylvania—Continued. Philadelphia- Philadelphia—Continued. Bank of North America. Girard National Bank. Corn Exchange National Bank. Market Street National Bank. First National Bank. Philadelphia National Bank. Fourth Street National Bank. Tradesmen's National Bank. DISTRICT NO. 4. Kentucky: Ohio—Continued. Lexington—Phoenix & Third National Bank. Toledo—Commerce Guardian Trust & Savings Ohio: Bank. Akron—First-Second National Bank. Pennsylvania: Cincinnati— Braddock—First National Bank. Fifth-Third National Bank. Greensburg—First National Bank. Union Savings & Trust Co. Pittsburgh- Cleveland- Bank of Pittsburgh, N. A. Brotherhood of Locomotive Engineers First National Bank. Co-operative National Bank. Mellon National Bank. Central National Bank, Savings & Trust Co. Pittsburgh Trust Co. Cleveland Trust Co. Union National Bank. Guardian Savings & Trust Co. Union Trust Co. Union Trust Co. West Virginia: Columbus- Wheeling—Wheeling Bank & Trust Co. City National Bank. Ohio National Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 .REPORT OF THE FEDERAL RESERVE BOARD. DISTRICT NO. 5. Maryland: South Carolina—Continued. Baltimore- Orangeburg—Edisto National Bank. Baltimore Commercial Bank. Rock Hill—Peoples National Bank. Baltimore Trust Co. Virginia: Citizens National Bank. Danville—First National Bank. Drovers & Mechanics National Bank. Hampton—Merchants National Bank. Farmers & Merchants National Bank. Norfolk- Maryland Trust Co. Citizens Bank. Merchants National Bank. National Bank of Commerce. National Bank of Baltimore. Norfolk National Bank. National Exchange Bank. Seaboard National Bank. National Marine Bank. " Virginia National Bank. National Union Bank of Maryland. Richmond— Second National Bank American National Bank. Western National Bank. Bank of Commerce & Trusts. North Carolina: First National Bank. Wilmington—Murchison National Bank. Merchants National Bank. South Carolina: National State and City Bank. Charleston- Planters National Bank. Bank of Charleston, N. B. A. Peoples National Bank. DISTRICT NO. 6. Alabama: Louisiana: Albany—Central National Bank. Jennings—Jennings National Bank. Decatur—City National Bank. New Orleans- Huntsville—Henderson National Bank. Canal Commercial Trust & Savings Bank. Troy—Farmers & Merchants National Bank. Hibernia Bank & Trust Co. Florida: Interstate Trust & Banking Co. Jacksonville—Atlantic National Bank. Liberty Bank & Trust Co. Pensacola—Citizens & Peoples National Bank. Marine Bank & Trust Co. Georgia: New Orleans Bank & Trust Co. Atlanta- Whitney-Central National Bank. Atlanta National Bank. New Roads—The Pointe Coupee Trust & Sav- Fourth National Bank. ings Bank. Lowry National Bank. Mississippi: Macon— Canton—First National Bank. Fourth National Bank. Vicksburg—Merchants National Bank. Macon National Bank. Tennessee: Savannah— Chattanooga- Citizens Trust Co. First National Bank. Citizens & Southern Bank. Hamilton National Bank. Savannah Bank & Trust Co. Clarksville—First National Bank. Valdosta—First National Bank. DISTRICT NO. 7. Illinois: Illinois—Continued. Chicago— Peoria— Chicago Trust Co. Merchants & Illinois National Bank. Continental & Commercial National Bank. Indiana: Corn Exchange National Bank. Brazil—The Riddell National Bank. Drovers National Bank. Indianapolis—Fletcher-American National First National Bank. Bank. Fort Dearborn National Bank. Michigan: Harris Trust & Savings Bank. Detroit— Illinois Trust & Savings Bank. First National Bank. Live Stock Exchange National Bank. National Bank of Commerce. Merchants Loan & Trust Co. Wisconsin: National Bank of the Republic. Milwaukee—First Wisconsin National Bank. National City Bank. Union Trust Co. DISTRICT NO. 8. Arkansas: Missouri—Continued. Pine Bluff—Peoples Savings Bank & Trust Co. St.' Louis—Continued. Mississippi: Merchants-Laclede National Bank. Ittabena—First National Bank. Mississippi Valley Trust Co. Missouri: National Bank of Commerce. St. Louis- Tennessee: First National Bank in St. Louis. Memphis— Liberty Central Trust Co. Union & Planters Bank & Trust Co. Mercantile Trust Co. Central-State National Bank. DISTRICT NO. 9. Minnesota- Minnesota—Continued. Minneapolis— St. Paul- First National Bank in Minneapolis. Capital National Bank. Northwestern National Bank. First National Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ACCEPTANCES TO 100 PER CENT. 333 DISTRICT NO. 10. Colorado: Missouri—Continued. Denver—Denver National Bank. Kansas City—Continued. Kansas: Fidelity National Bank & Trust Co. Hutchinson—First National Bank. First National Bank. Lawrence—Lawrence National Bank. St. Joseph—First National Bank. Missouri: Oklahoma: Kansas City— Oklahoma City—Security National Bank. Commerce Trust Co. Continental National Bank of Jackson County. DISTRICT NO. 11. Arizona: Texas—Continued. Nogales—First National Bank. Honey Grove—State National Bank. Texas: Houston— Austin—American National Bank. First National Bank. Brown wood—First National Bank in Brown- Houston National Exchange Bank. wood. Lumbermans National Bank. Dallas- National Bank of Commerce. American Exchange National Bank. South Texas Commercial National Bank. City National Bank. Union National Bank. Dallas National Bank. Navasota—First National Bank. The Southwest National Bank. Paris—Lamar State Bank & Trust Co. El Paso—First National Bank. San Angelo—First National Bank. Fort Worth- Sherman—Commercial National Bank. Farmers & Mechanics National Bank. Terrell- Fort Worth National Bank. American National Bank. Stockyards National Bank. First National Bank. Gainesville—First National Bank. Waco—First National Bank. Hillsboro—Citizens National Bank. Waxahachie—Waxahachie National Bank. DISTRICT NO. 12. California: Oregon—Continued. Los Angeles- Portland—Continued. First National Bank. Northwestern National Bank. Merchants National Bank. United States National Bank. San Francisco- Washington: American National Bank. Seattle- Anglo & London-Paris National Bank. Dexter Horton National Bank. Bank of California, N. A. First National Bank. Crocker National Bank. National Bank of Commerce of Seattle. First National Bank. Seaboard National Bank. Wells Fargo-Nevada National Bank. Seattle National Bank. Santa Barbara—First National Bank. Union National Bank. Spokane- Oregon: Exchange National Bank. Portland- Old National Bank. First National Bank. Spokane & Eastern Trust Co. Ladd & Tilton Bank. Tacoma—National Bank of Tacoma. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 EEPOET OF THE FEDERAL RESERVE BOARD. PERSONNEL AND SALARIES. SALARIES OP OFFICERS AND EMPLOYEES OF FEDERAL RESERVE BANKS AS OF DECEMBER 31, 1920 AND 1921. FEDERAL RESERVE BANK OF BOSTON Officers and employees. Departments. Number. Salaries. 1920 1921 1920 1921 Chairman and Federal Reserve Agent . 1 1 $18,000 $18,000 Governor 1 1 25,000 25,000 Other officers 11 12 77,500 92,500 Banking department 544 565 662,340 756,840 Federal Reserve Agent's department 22 30 46,180 59,340 Auditing department 18 19 34,200 38,940 Fiscal agency department 179 106 227,100 157,030 Total 776 734 1,090,320 1,147,650 FEDERAL RESERVE BANK OF NEW *ORK (INCLUDING BUFFALO BRANCH). Chairman and Federal Reserve Agent. 1 1 $30,000 $30,000 Governor 1 1 1 25,000 50,000 Other officers 35 38 363,400 429,800 Banking department 2,255 2,418 3,141,423 3,424,423 Federal Reserve Agent's department.. 74 91 145,120 177,960 Auditing department 109 96 210,650 192,360 Fiscal agency department 461 262 723,680 427,300 Total. 2,936 2,907 4,639,273 4, 731, 843 i Half pay only. FEDERAL RESERVE BANK OF PHILADELPHIA. Chairman and Federal Reserve Agent 1 1 $15,000 $15,000 Governor 1 1 25,000 25,000 Other officers 9 9 72,000 73,500 Banking department 678 741 817,048 913,250 Federal Reserve Agent's department. 22 53 47,900 108,574 Auditing department 26 25 48,190 47,940 Fiscal agency department 105 67 132,950 100,530 Total 1842 897 1,158,088 1,283,794 i Revised. FEDERAL RESERVE BANK OF CLEVELAND (INCLUDING CINCINNATI AND PITTSBURGH BRANCHES). Chairman and Federal Reserve Agent 1 1 $23,250 $25,000 Governor 1 1 30,000 30,000 Other officers 18 23 101,500 147,100 Banking department 756 755 986,019 1,006,346 Federal Reserve Agent's department. 22 30 43,992 67,376 Auditing department 30 40 60, 872 78,403 Fiscal agency department 141 127 200,156 192,287 Total 969 977 1,445,789 1,546,512 FEDERAL RESERVE BANK OF RICHMOND (INCLUDING BALTIMORE BRANCH). Chairman and Federal Reserve Agent 1 1 $15,000 $15,000 Governor 1 1 18,000 18,000 Other officers 16 18 93,250 110,600 Banking department 539 632 601,090 715,410 Federal Reserve Agent's department.. 15 32 38,860 80,210 Auditing department 24 24 46,050 47,130 Fiscal agency department 71 37 85,726 49,400 Total 667 745 897,976 1,035,750 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PERSONNEL AND SALARIES. 335 SALARIES OF OFFICERS AND EMPLOYEES OF FEDERAL RESERVE BANKS AS OF DECEMBER 31, 1920 AND 1921—Continued. FEDERAL RESERVE BANK OF ATLANTA (INCLUDING BIRMINGHAM, JACKSONVILLE, NASHVILLE, AND NEW ORLEANS BRANCHES AND SAVANNAH AGENCY). Officers and employees. Departments. Number. Salaries. 1920 1921 1920 1921 Chairman and Federal Reserve Agent 1 1 $12,000 $12,000 Governor 1 1 18,00a 18,000 Other officers 21 23 96,580 121,500 Banking department 324 371 376,805 441,086 Federal Reserve Agent's department.. 17 18 38,600 44,560 Auditing department 22 24 35,520 39,540 Fiscal agency department 60 44 67,020 55,440 Total 446 482 1644,525 I 732,126 FEDERAL RESERVE BANK OF CHICAGO (INCLUDING DETROIT BRANCH). Chairman and Federal Reserve Agent 1 1 $24,000 $24,000 Governor 1 1 35,000 35,000 Other officers 34 44 167,950 274,600 Banking department 1,326 1,383 1,864,860 Federal Reserve Agent's department. 37 86 72,560 159,890 Auditing department 32 39 66,100 Fiscal agency department 300 174 432,200 268,460 Total 1,731 1,728 2,447,450 2,692,910 FEDERAL RESERVE BANK OF ST. LOUIS (INCLUDING LOUISVILLE, MEMPHIS, AND LITTLE ROCK BRANCHES). Chairman and Federal Reserve Agent 1 1 $16,000 $18,000 Governor 1 1 20,000 25,000 Other officers , 19 19 100,200 105,700 Banking department 655 616 771,300 784,603 Federal Reserve Agent's department.. 9 10 19,980 24,060 Auditing department 30 28 48,560 50,980 Fiscal agency department 136 87 163,380 122,480 Total 851 762 1,139,420 1,130,823 FEDERAL RESERVE BANK OF MINNEAPOLIS (INCLUDING HELENA BRANCH). Chairman and Federal Reserve Agent 1 1 $15,000 $15,000 Governor. 1 1 16,000 16,000 Other officers 9 9 44,400 51,550 Banking department 333 365 388,316 450,628 Federal Reserve Agent's department.. 18 18 40,320 44,660 Auditing department 11 13 16,020 20,720 Fiscal agency department 86 60 118,816 92,296 Total 459 467 638,872 690,854 FEDERAL RESERVE BANK OF KANSAS CITY (INCLUDING DENVER, OKLAHOMA CITY, AND OMAHA BRANCHES). Chairman and Federal Reserve Agent. 1 1 $15,000 $15,000 Governor 1 1 20,000 20,000 Other officers 19 20 74,473 107,720 Banking department 589 672 664,792 946,801 Federal Reserve Agent's department.. 13 20 28,140 45,882 Auditing department 47 48 69,522 91,680 Fiscal agency department 193 132 258,060 214,040 Total. 863 894 1,129,987 1,441,123 1 Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

336 REPORT OF THE FEDERAL RESERVE BOARD. SALARIES OP OFFICERS AND EMPLOYEES OF FEDERAL RESERVE BANKS AS OF DECEMBER 31, 1920 AND 1921—Continued. FEDERAL RESERVE BANK OF DALLAS (INCLUDING EL PASO AND HOUSTON BRANCHES). Officers and employees. Departments. Number. Salaries. 1920 1921 1920 1921 Chairman and Federal Reserve Agent. 1 1 $18,000 $18,000 Governor , , 1 1 18,000 18,000 Other officers 17 20 76,000 85,900 Banking department 460 509 538,065 680, 697 Federal Reserve Agent's department.. 20 25 50,342 60,720 Auditing department 36 32 45,908 60,390 Fiscal agency department 78 49 120, 475 78, 280 Total 613 637 866,790 1, 001,987 FEDERAL RESERVE BANK OF SAN FRANCISCO (INCLUDING LOS ANGELES, PORTLAND, SALT LAKE CITY, SEATTLE, AND SPOKANE BRANCHES). Chairman and Federal Reserve Agent. 1 1 $24,000 $24,000 Governor 1 1 24,000 24,000 Other officers 29 33 125,020 169, 360 Banking department 842 1,014 1,110,792 1, 513,180 Federal Reserve Agent's department.. 23 36 59,780 91,880 Auditing department 53 57 103,620 Fiscal agency department 183 125 245,280 194,100 Total 1,132 1,267 1,677, 252 2,120,140 SALARIES OF OFFICERS AND EMPLOYEES OF THE FEDERAL RESERVE BOARD AS OF DEC. 31, 1921. OFFICE OF THE SECRETARY. W. W. Hoxton, secretary $10,000. 00 W. L. Eddy, assistant secretary 6,000. 00 Staff: 1 at $4,200 4, 200. 00 1 at $3,900 3, 900. 00 1 at $3,200 3, 200. 00 1 at $3,000 .. 3,000. 00 1 at $2,800. 2, 800. 00 1 at $2,565 , 2, 565. 00 1 at $2,500 2, 500. 00 2 at $2,200 4, 400. 00 2 at $2,080 4,160. 00 1 at $2,040 2, 040. 00 2 at $2,000 4,000:00 3 at $1,905 5, 715.00 1 at $1,800 1, 800. 00 3 at $1,730 5,190. 00 5 at $1,665 8, 325. 00 1 at $1,500 1, 500. 00 1 at $1,440 1, 440. 00 1 at $1,260 1, 260. 00 1 at $820 820. 00 1 at $720 720. 00 $79 535. 00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PERSONNEL AND SALARIES. 337 OFFICE OF GENERAL COUNSEL. W. S. Logan, general counsel $10,000. 00 Walter Wyatt, assistant counsel 5, 200.00 Edgar W/Freeman, assistant counsel 5,000.00 Staff: 1 at $2,850 2, 850. 00 1 at $2,650 2, 650.00 1 at $2,000 r. 2,000. 00 1 at $1,920 1,920. 00 1 at $1,800 1, 800. 00 $31,420. 00 OFFICE OF FISCAL AGENT. W. M. Imlay, fiscal agent 4,500.00 Staff: 1 at $1,540 1, 540. 00 6,040.00 ARCHITECTS. A. B. Trowbridge, consulting architect 6, 666. 66 O. W. Ten Eyck, assistant architect 4,000.00 10,666.66 OFFICES OF MEMBERS OF THE BOARD. Staff: 1 at $3,000 3,000. 00 1 at $2,740 2, 740. 00 2 at $2,600 5, 200. 00 2 at $2,500 5,000. 00 1 at $1,800 1, 800. 00 1 at $1,665 1, 665. 00 1 at $1,500 1, 500. 00 20,905.00 OFFICE OF STATISTICIAN. Morris Jacobson, statistician 8, 000. 00 E. A. Goldenweiser, associate statistician 4, 800. 00 Staff: 1 at $2,400 2,400. 00 2 at $2,000 4, 000. 00 1 at $1,800 1, 800. 00 2 at $1,680 3, 360. 00 1 at $1,665 1, 665. 00 1 at $1,440 1,440. 00 1 at $1,080 1, 080. 00 1 at $720 720. 00 29, 265. 00 DIVISION OF REPORTS AND STATISTICS. E. L. Smead, chief of division 5, 400.00 Staff: 1 at $3,600 3, 600. 00 1 at $3,200 3, 200. 00 2 at $2,665 5, 330. 00 1 at $2,400 2, 400. 00 1 at $2,330 2, 330. 00 1 at $2,200 2, 200. 00 1 at $2,100 2,100.00 4 at $2,080 8, 320.00 1 at $1,905 1, 905. 00 1 at $1,760 1, 760. 00 1 at $1,730 1, 730.00 2 at $1,665 3, 330. 00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 REPORT OF THE FEDERAL RESERVE BOARD. 3 at $1,600 $4, 800. 00 4 at $1,550 6, 240. 00 1 at $1,540 1, 540. 00 2 at $1,465 2, 930. 00 5 at $1,440 7, 200. 00 1 at $1,330 1, 330. 00 4 at $1,320 5, 280. 00 1 at $1,250 1, 250.00 2 at $1,200 2, 400. 00 2 at $1,160 2, 320. 00 $78,895. 00 DIVISION OF EXAMINATION. James F. Herson, chief of division and chief Federal Reserve examiner , 10, 000. 00 Examiners: "W; J. Donald 6, 500. 00 James Buchanan, jr 6,500. 00 Val J. Grund 4, 500. 00 R. M. Chapman 4, 200. 00 Assistant examiners: 1 at $4,200 4,200. 00 1 at $4,000 4, 000. 00 1 at $3,900 3, 900. 00 1 at $3,800 3, 800. 00 1 at $3,600 3, 600. 00 3 at $3,300 9, 900. 00 3 at $3,000 9, 000. 00 1 at $2,700 2,700. 00 1 at $2,500 2, 500. 00 1 at $2,000 2, 000. 00 77,300.00 Office staff: 1 at $2,400 2,400. 00 2 at $1,730 3, 460. 00 1 at $1,465 1,465. 00 1 at $1,200 1,200. 00 8, 525. 00 85, 825. 00 DIVISION OP ANALYSIS AND BESEARCH. H. Parker Willis, director of division 6, 000. 00 W. H. Steiner, assistant director 4, 200. 00 Staff: 1 at $3,250 3, 250. 00 2 at $3,000 6, 000. 00 1 at $2,700 - 2, 700. 00 1 at $2,500 2, 500. 00 1 at $2,400 • 2,400. 00 1 at $2,100 2,100. 00 1 at $2,000 2, 000. 00 1 at $1,750 1, 750. 00 1 at $1,680 1, 680. 00 1 at $1,620 1, 620. 00 1 at $1,600 1, 600. 00 7 at $1,500 10, 500. 00 1 at $1,200 1, 200. 00 1 at $1,000 1, 000. 00 1 at $900 900. 00 1 at $750 750.00 1 at $600.... 600. 00 52,750.00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PERSONNEL AND SALARIES. 339 DIVISION OF FEDERAL RESERVE ISSUE AND REDEMPTION. Willard E. Buell, chief of division $4,100. 00 W. J. Tucker, assistant chief 2, 640. 00 Staff: 1 at $2,160 2,160. 00 1 at $1,920 1, 920. 00 1 at $1,800 1, 800. 00 1 at $1,740 1, 740. 00 1 at $1,680 1, 680. 00 2 at $1,620 3, 240.00 1 at $1,560 1, 560. 00 13 at $1,500 19, 500. 00 12 at $1,440 17, 280. 00 3 at $1,400 4, 200. 00 6 at $1,380 8, 280.00 5 at $1,320 6, 600. 00 2 at $1,260 2, 520. 00 3 at $1,200 3, 600. 00 2 at $1,140 2, 280. 00 1 at $600 600. 00 $85, 700. 00 RAILWAY LOAN ADVISORY COMMITTEE. Staff: 1 at $1,800 1,800. 00 EMPLOYEES DETAILED. Redemption Division, Office of the Comptroller of the Currency: 16 at $1,040 (currency counters) 1 16,640.00 2 at $1,020 (laborers)'. 2,040.00 1 at $1,000 (laborer) 1,000.00 19,680.00 MESSENGERS. 2 at $1,440 2,880.00 1 at $1,340 1,340.00 1 at $1,200 1,200.00 6 at $1,160 6,960.00 12,380.00 CHARWOMEN. 3 at $240 720.00 Total 515,581. 66 SALARIES OF NATIONAL BANK EXAMINERS AS OF DEC. 31, 1921. enry B. Davenport, assigned as chief, Examining Division, Comptroller's Office $4,000 DISTRICT NO. 1—BOSTON. (396 national member banks.) Daniel C. Mulloney, chief examiner $10, 500 1 examiner, at $6,000; 1 examiner, at $4,500; 3 examiners, at $4,200; 1 examiner, at $3,900; 1 examiner, at $3,600; 1 examiner, at $3,300 33, 900 44,400 i Temporary employees; services terminated Dec. 31,1921. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 REPORT OF THE FEDERAL RESERVE BOARD. DISTRICT NO. 2—NEW YORK. (666 national member banks.) Daniel G. Borden, chief examiner $15,000 1 examiner, at $6,500; 3 examiners, at $6,000; 1 examiner, at $5,500; 1 examiner, at $5,000; 1 examiner, at $4,500; 1 examiner, at $4,200; 1 examiner, at $4,000; 2 examiners, at $3,900; 3 examiners, at $3,600; 4 examiners, at $3,000 78, 300 . $93,300 DISTRICT NO. 3—PHILADELPHIA. (655 national member banks.) Stephen L. Newnham, chief examiner 10, 500 1 examiner, at $5,500; 1 examiner, at $5,000; 2 examiners, at $4,500; 3 examiners, at $3,600; 1 examiner, at $3,300; 5 examiners, at $3,000; 1 examiner, at $2,700 51, 300 • 61, 800 DISTRICT NO. 4—CLEVELAND. (768 national member banks.) Thomas C. Thomas, chief examiner 8,000 1 examiner, at $5,100; 2 examiners, at $4,500; 1 examiner, $4,200; 1 examiner, at $4,000; 1 examiner, at $3,600; 1 examiner, at $3,300; 7 examiners, at $3,000 50, 200 58,200 DISTRICT NO. 5—RICHMOND. (560 national member banks.) William J. Schechter, chief examiner 8,000 1 examiner, at $6,000; 1 examiner, at $4,200; 4 examiners, at $3,900; 4 examiners, at $3,600; 1 examiner, at $3,300; 3 examiners, at $3,000 52, 500 60,500 DISTRICT NO. 6—ATLANTA. (388 national member banks.) J. William Pole, chief examiner 8, 000 2 examiners, at $4,500; 1 examiner, at $4,200; 2 examiners, at $3,600- 1 examiner, at $3,300; 3 examiners, at $3,000 32, 700 40,700 DISTRICT NO. 7—CHICAGO. (1,065 national member banks.) Fred Brown, chief examiner 10, 000 3 examiners, at $5,000; 1 examiner, at $4,800; 3 examiners, at $4,500; 2 examiners, at $4,200; 3 examiners, at $4,000; 4 examiners, at $3,900; 2 examiners, at $3,600; 1 examiner, at $3,500; 8 examiners, at $3,000; 1 examiner, at $2,400 106, 400 116,400 DISTRICT NO. 8—ST. LOUIS. (482 national member banks.) John S. Wood, chief examiner 8, 000 1 examiner, at $5,500; 1 examiner, at $5,300; 1 examiner, at $4,200; 2 examiners, at $3,600: 1 examiner, at $3,300; 2 examiners, at $3,000; 1 examiner, at $2,700 34, 200 AQ onn ——————~- *«> &\J\r DISTRICT NO. 9—MINNEAPOLIS. (886 national member banks.) Howard M. Sims, chief examiner 8,000 1 examiner, at $5,300; 1 examiner, at $4,200; 3 examiners, at $3,600; 2 examiners, at $3,300; 7 examiners, at $3,000 47, 900 Digitized for FRASER 55,900 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PERSONNEL AND SALARIES. 341 DISTRICT NO. 10—KANSAS CITY. (1,053 national member banks.) Luther K. Roberts, chief examiner. $8, 000 1 examiner, at $5,000; 2 examiners, at $4,800; 1 examiner, at $4,000; 2 examiners, at $3,900; 1 examiner, at $3,600; 1 examiner, at $3,300; 10 examiners, at $3,000 63, 300 $71,300 DISTRICT NO. 11—DALLAS. (654 national member banks.) Richard II. Collier, chief examiner 9,000 1 examiner, at $4,500; 3 examiners, at $4,200; 2 examiners, at $4,000; 5 examiners, at $3,600; 3 examiners, at $3,000; 2 examiners, at $2,700 57, 500 66,500 DISTRICT NO. 12—SAN FRANCISCO. (630 national member banks.1) Harry L. Machen, chief examiner 8, 500 2 examiners, at $6,000; 1 examiner, at $5,500; 1 examiner, at $5,300; 2 examiners, at $5,000; 1 examiner, at $4,800; 1 examiner, at $4,500; 5 examiners, at $4,200; 1 examiner, at $4,000; 2 examiners, at $3,600; 1 examiner, at $3,300: 3 examiners, at $3,000 86, 600 95,100 Grand total of annual salaries of all examiners on Dec. 31, 1921 810,300 RECAPITULATION. Examining staff: Chief examiners— At $15,000 per annum 1 At $10,500 per annum 2 At $10,000 per annum 1 At $9,000 per annum 1 At $8,500 per annum 1 At $8,000 per annum 6 Total, chief examiners 12 Salaries, chief examiners HI, 500 Other examiners— At $6,500 per annum 1 At $6,000 per annum 7 At $5,500 per annum 4 At $5,300 per a,nnum 3 At $5*100 per annum 1 At $5,000 per annum 8 At $4,8500 per annum 4 At $4,500 per annum 13 At $4,200 per annum 19 At $4,000 per annum 10 At $3,900'per annum 13 At $3,600 per annum 29 At $3,500 per annum 1 At $3,300 per annum 10 At $3,000 per annum 56 At $2,700 per annum 4 At $2,400 per annum 1 Total other examiners 183 Salaries, other examiners 6"98i 800 Total, examining staff a 195 r Total salaries 810, 30O 1 Includes the 2 national nonmember banks in the Hawaiian Territory and the 3 national nonmember banks in Alaska. 2 In addition, there are 31 national-bank examiners not receiving salaries. 85227—22 23 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 REPORT OF THE FEDERAL RESERVE BOARD. DIRECTORY OF THE FEDERAL RESERVE BOARD AND FEDERAL RESERVE BANKS. FEDERAL RESERVE BOARD. EX OFFICIO MEMBERS. W. P. G. HARDING, Governor. EDMUND PLATT, Vice Governor. A. W. MELLON, ADOLPH C. MILLER. Secretary of the Treasury, Chairman. CHARLES S. HAMLIN. D. R. CRISSINGER, JOHN R. MITCHELL. Comptroller of the Currency. W. W. HOXTON, Secretary. WALTER S. LOGAN, General Counsel. W. L. EDDY, Assistant Secretary. M. JACOB SON, Statistician. W. M. IMLAY, Fiscal Agent. E. A. GOLDENWEISER, Associate Statisti- J. F. HERSON, cian. Chief, Division of Examination and E. L. SMEAD, Chief Federal Reserve Examiner. Chief, Division of Reports and Sta- H. PARKER WILLIS, tistics. Director, Division of Analysis and Research. OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS.1 DISTRICT NO. 1—FEDERAL RESERVE BANK OF BOSTON. Frederic II. Curtiss, Chairman and Federal Reserve Agent. Allen Hollis, Deputy Chairman. Chas. A. Morss, Governor. Director. Residence. Term expires. Class A: Frederick S. Chamberlain New Britain, Conn Dec. 31,1922 Thomas P. Beal Boston, Mass Dec. 31,1923 Edward S. Kennard Rumford, Me Dec. 31,1924 Class B: ; E. R. Morse I Proctor, Vt Dec. 31,1922 Philip R. Allen J East Walpole, Mass Dec. 31,1923 Charles G. Washburn j Worcester, Mass Dec. 31,1924 Class C: | Jesse H. Metcalf Providence, R.I Dec. 31,1922 Frederic H. Curtiss Boston, Mass Dec. 31,1923 Allen Hollis ~Concord N.H. Dec. 31,1924 I 1 Includes directors elected in December, 1921, for the 3-year term beginning January 1,1922. DISTRICT NO. 2.—FEDERAL RESERVE BANK OF NEW YORK. Pierre Jay, Chairman and Federal Reserve Agent. W. L. Saunders, Deputy Chairman. Benjamin Strong, Governor. Class A: j James S. Alexander j New York, N. Y. Dec. 31,1922 Robert H. Treman ! Ithaca, N. Y. Dec. 31,1923 Charles Smith. Oneonta, N. Y. Dec. 31,1924 Class B: Charles A. Stone New York, N. Y Dec. 31,1922 Richard H. Williams Madison, N. J.. Dec, 31,1923 Frank L. Stevens North Hoosick, N. Y. Dec. 31,1924 Class C: Pierre Jay ! New York, N. Y Dec. 31,1922 W. L. Saunders do Dec. 31,1923 Clarence M. Woolley do Dec. 31,1924 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORY. 343 DISTRICT NO. 2-FEDERAL RESERVE BANK OF NEW YORK—Continued. BUFFALO BRANCH. W. W. Schneckenberger, Manager. Director. Residence. Term expires. John A. Kloepfer Buffalo, N, Y. Dec. 31,1922 Elliott C. McDougal do Do. Harry T. Ramsdell .do. Do. Fred J. Coe , Niagara Falls, N. Y Do. E. J. Barcalo BufEalo, N. Y Do. Thomas E. Lannin Rochester, N. Y Do. W. W. Schneckenberger. Buffalo, N.Y Do. DISTRICT NO. 3.—FEDERAL RESERVE BANK OF PHILADELPHIA. Richard L. Austin, Chairman and Federal Reserve Agent. Henry B. Thompson, Deputy Chairman. George W. Norris, Governor. Class A: M. J. Murphy Clarks Green, Pa Dec. 31,1922 Joseph Wayne, jr Philadelphia, Pa Dec. 31,1923 Francis D ouglas Wilkes-Barre, Pa Dec. 31,1924 Class B: Alba B. Johnson Philadelphia, Pa Dec. 31,1922 Edwin S. Stuart do Dec. 31,1923 Charles K. Haddon Camden, N. J Dec. 31,1924 Class C: Henry B. Thompson Wilmington, Del Dec. 31,1922 Richard L. Austin Philadelphia, Pa Dec. 31,1923 Charles C. Harrison do Dec. 31,1924 DISTRICT NO. 4.—FEDERAL RESERVE BANK OF CLEVELAND. D. C. Wills, Chairman and Federal Reserve Agent. L. B. Williams, Deputy Chairman. E. R. Fancher, Governor. Class A: Chess Lamberton Franklin, Pa.... Dec. 31,1922 Robert Wardrop Pittsburgh, Pa.. Dec. 31,1923 O.N.Sams Hillsboro, Ohio. Dec. 31,1924 Class B: R. P. Wright Erie, Pa.. Dec. 31,1922 Thos. A. Combs Lexington, Ky Dec. 31,1923 John Stambaugh Youngstown, Ohio. Dec. 31,1924 Class C: L. B. Williams Cleveland, Ohio Dec. 31,1922 D. 0. Wills do. Dec. 31,1923 W. W. Knight Toledo, Ohio Dec. 31,1924 PITTSBURGH BRANCH. Geo De Camp, Manager. Oh as. W. Brown. Sewickley, Pa.. Dec. 31,1922 James D. Gallery. Pittsburgh, Pa. Do. Geo. De Camp... .do Do. R. B.Mellon .do. Do. Harrison Nesbit.. .do. Do. CINCINNATI BRANCH. L. W. ManniBg, Manager. George D. Crabbs Cincinnati, Ohio, Dec. 31,1922 Judson Harmon .do Do. Charjes A. Hinsch .do. Do. L. W. Manning .do. Do. W. S. Rowe .do. Do. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 REPORT OF THE FEDERAL RESERVE BOARD. DISTRICT NO. 5.—FEDERAL RESERVE BANK OF RICHMOND. Caldwell Hardy, Chairman and Federal Reserve Agent. James A. Moncure, Deputy Chairman. George J. Seay, Governor. Director. Residence. Term expires. Class A: John F. Bruton. . Wilson, N. C. Dec. 31,1922 L. E. Johnson Alderson, W. Va Dee. 31,1923 Charles E. Rieman Baltimore, Md Dee. 31,1924 Class B: Edwin C. Graham Washington, D. C. Dec. 31,1922 D. R. Coker Hartsville, S. C Dee. 31,1923 Edmund Strudwick Richmond, Va Dec. 31,1924 Class C: James A. Moncure. . do Dec. 31,1922 Caldwell Hardy .. .do Dee. 31,1923 Frederic A. Delano Washington, D. C Dec. 31,1924 BALTIMORE BRANCH. M. M. Prentis, Manager. Charles C. Homer, jr. Baltimore, Md. Dec. 31,1922 William Ingle do Do. Waldo Newcomer do Do. Henry B. Wilcox.... do Do. M. M. Prentis do Do. DISTRICT NO. 6—FEDERAL RESERVE BANK OF ATLANTA. Joseph A. McCord, Chairman and Federal Reserve Agent. W. H. Kettig, Deputy Chairman. M. B. Wellborn, Governor. Class A: Oscar Newton Jackson, Miss | Dec. 31,1922 P. R. Kittles Sylvania, Ga I Dec. 31,1923 John K. Ottley Atlanta, Ga | Dec. 31,1924 Class B: W. H. Hartford.... Nashville, Tenn.. Dec. 31,1922 Leon C. Simon New Orleans, La.. Dec. 31,1923 J. A. McCrary Decatur, Ga Dec. 31,1924 Class C: W. H. Kettig Birmingham, Ala.. Dec. 31,1922 Joseph A. McCord.. Atlanta, Ga Dec. 31,1923 Lindsey Hopkins.. do Dec. 31,1924 NEW ORLEANS BRANCH. P. H. Saunders, Chairman. P. H. Saunders New Orleans, La. Dee. 31,192? John E. Bouden, jr.. .do.. Do. A. P. Bush Mobile, Ala Do. Frank W. Foote Hattiesburg, Miss. Do. R. S. Hecht New Orleans, La.. Do. H. B. Lightcap Jackson, Miss..... Do. LeonC. Simon New Orleans, La.. Do. BIRMINGHAM BRANCH. W. H. Kettig, Chairman. W. H. Kettig.... Birmingham, Ala. Dec. 31,1922 W. W.Crawford. .do Do. JohnH. Frye.... .do., Do. T. O. Smith .do., Do. Oscar Wells .do.. Do. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORY. 345 DISTRICT NO. 6—FEDERAL RESERVE BANK OF ATLANTA—Continued. JACKSONVILLE BRANCH. John C. Cooper, Chairman. Director. Residence. Term expires. John C. Cooper... Jacksonville,Fla .. Dec. 31,1922 Bion H. Barnett . . .do Do. E. W. Lane do Do. Fulton Saussy . . do .. Do. Oiles L. Wilson do Do. NASHVILLE BRANCH. W. H. Hartford, Chairman. W. H. Hartford. Nashville, Tenn.. Dec. 31,1922 J. E. Caldwell... do Do. PaulM. Davis.. ....do. Do. T. A. Embry... Winchester, Tenn. Do. E. A. Lindsey.. Nashville, Tenn... Do. SAVANNAH AGENCY. R. M. Groover, Acting 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; Chas. H. McNider Mason City, Iowa... Dec. 31,1922 E. L. Johnson Waterloo, Iowa Dec. 31,1923 George M. Reynolds Chicago, 111 Dec. 31,1924 Class B: J. W. Blodgett Grand Rapids, Mich Dec. 31,1922 A. R. Erskine South Bend, Ind Dec. 31,1923 A. H.Vogel Milwaukee, Wis Dec. 31,1924 Class C: F. C. Ball Muncie, Ind Dec. 31,1922 James Simpson Chicago, 111 Dec. 31,1923 Wm. A. Heath do Dec. 31,1924 DETROIT BRANCH. Robert B. Locke, Manager. John Ballantyne... Detroit, Mich, Dec. 31,1922 Emory W.Clark... do Do. Julius H.Haas ..do. Do. Charles H. Hodges. .do. Do. Robert 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: Sam A. Ziegler Albion, 111.. Dec. 31,1922 John G. Lonsdale. St. Louis, Mo Dec. 31,1923 J. C. Utterback... Paducah, Ky Dec. 31,1924 Class B: W. B. Plunkett... Little Rock, Ark.. Dec. 31,1922 LeRoy Percy, Greenville, Miss.. Dec. 31,1923 Rollaa ^Wells... St. Louis, Mo Dec. 31,1924 Class C: C. P. J. Mooney Memphis, Tenn.. Dec. 31,1922 JohnW. Boehne... Evansville, Ind.. Dec. 31,1923 Wm. McC. Martin. St. Louis, Mo Dec. 31,1924 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 REPORT OF THE FEDERAL RESERVE BOARD. DISTRICT NO. 8—FEDERAL RESERVE BANK OP ST. LOUIS—Continued. LOUISVILLE BRANCH. W. P. Kincheloe, Manager. Director. Residence. Term expires. Geo. W. Norton .! Louisville, Ky Dec. 31,1922 W. C. Montgomery . I Elizabethtown, Ky. Do. W. P. Kincheloe . | Louisville, Ky Do. F. M. Sackett .{ do Do. Embry L. Swearingen. .1 do Do. MEMPHIS BRANCH. John J. Heflin, Manager. R. Brinkley Snowden | Memphis, Tenn. Dec. 31,1922 John D. McDowell I do Do. John J. Heflin j do Do. T. K. Riddick ! do Do. S. E.Ragland | do Do. LITTLE ROCK BRANCH. A. F. Bailey, Manager. C.A.Pratt Little Rock, Ark. Dec. 31,1922 J. E. England, jr.. do Do. A. F. Bailey .do. Do. Moorhead Wright. .do. Do. G. W. Rogers .do. Do. DISTRICT NO. 9—FEDERAL RESERVE BANK OF MINNEAPOLIS. John H. Rich, Chairman and Federal Reserve Agent. Homer P. Clark, Deputy Chairman. R. A. Young, Governor. Class A: Theodore Wold Minneapolis, Minn.. Dec.31.1922 J. C. Bassett Aberdeen, S. Dak... Dec.31.1923 Wesley C. McDowell Marion, N. Dak Dec.31.1924 Class B: F. R. Bigelow St. Paul, Minn Dec.31.1922 N. B. Holter Helena, Mont Dec.31.1923 F. P. Hixon LaCrosse, Wis Dec.31.1924 Class C: C. Harry Benedict Lake Linden, Mich. Dec.31.1922 John H. Rich Minneapolis, Minn.. Dec.31.1923 Homer P. Clark St. Paul, Minn Dec.31.1924 HELENA BRANCH. O. A. Carlson, Manager. R. O. Kaufman Helena, Mont Dec. 31,1922 Chas. J.Kelly Butte, Mont Do. H. W. Rowley Billlings, Mont Do. L.M. Ford Great Falls, M ont Do. T homas Marlow Helena, Mont Do. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORY. 347 DISTRICT NO. 10- FEDERAL RESERVE BANK OF KANSAS CITY. Asa]E. Ramsay, Chairman and Federal Reserve Agent. Heber Hord, Deputy Chairman. J. Z. Miller, jr., Governor. Director. Residence. Term expires. Class A: W. J. Bailey Atchison, Kans. Dec. 31.1922 E. E. Mullaney Hill City, Kans.. Dec. 31.1923 J.C.Mitchell Denver, Colo Dec. 31.1924 Class B: M. L. McClure Kansas City, Mo Dec. 31.1922 H. W.Gibson Muskogee, Okla Dec. 31.1923 Thomas C. Byrne. Omaha, Nebr Dec. 31.1924 Class C: Fred W. Fleming. Kansas City, Mo... Dec. 31.1922 Asa E. Ramsay... do Dec. 31.1923 Heber Hord Central City, Nebr. Dec. 31.1924 OMAHA BRANCH. L. H. Earhart, Manager. I George E.Abbott. Cheyenne, Wyo. Dec. 31,1922 William J. Coad... Omaha, Nebr... Do. L. H. Earhart .do.. Do. P. L. Hall Lincoln, Nebr Do. R.|O. Marnell Nebraska City, Nebr.. Do. DENVER BRANCH. C. A. Burkhardt, Manager. A. C. Foster Denver, Colo Dec. 31,1922 C. C. Parks .do . Do. C. A. Burkhardt . do *<H Do. John Evans do •••DO. Alva B.^Adams Pueblo Col iDo. OKLAHOMA CITY BRANCH. C. E. Daniel, Manager. Dorset Carter. Oklahoma City, Okla .. Dec. 31,1922 T. P. Martin, jr. . do Do. C. E. Daniel .do... . Do. William Mee.. do Do. E. K. Thurmond do Do. DISTRICT NO. 11.—FEDERAL RESERVE BANK OF DALLAS. W. F. Ramsey, Chairman and Federal Reserve Agent. W. B. Newsome, Deputy Chairman. B. A. McKinney, Governor. Class A: B. A. McKinney Dallas, Tex Dec. 31, 1922 Howell E. Smith McKinney, Tex Dec. 31, 1923 John T. Scott Houston, Tex.. Dec. 31, 1924 Class B: Marion Sansom Fort Worth, Tex... Dec. 31, 1922 J. J. Culbertson Paris, Tex 1... Dec. 31,1923 Frank Kell Wichita Falls, Tex. Dec. 31, 1924 Class C: H. O. Wooten A bilene, Tex Dec. 31, 1922 W. F. Ramsey Dallas, Tex Dec. 31, 1923 W. B. Newsome .....do Dec. 31, 1924 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 REPORT OF THE FEDERAL RESERVE BOARD. DISTRICT NO. 11—FEDERAL RESERVE BANK OF DALLAS—Continued. EL PASO BRANCH. W. C. Weiss, Manager. Director. Residence. Term expires. W. W. Turnev .. El Paso, Tex Dec 31 1922 A. P. Coles do Do/ E. M. Hurd ... ... do Do U. S. Stewart.... do Do W. C. Weiss. ...do Do. HOUSTON BRANCH. Floyd Ikard, Manager. R. M. Farrar Houston, Tex. . . . Dec. 31, 1922 J. J. Davis Galveston, Tex Do Frank Andrews Houston, Tex Do Guy M. Bryan do Do. E. F. Gossett do Do. DISTRICT NO. 12.—FEDERAL RESERVE BANK OF SAN FRANCISCO. John Perrin, Chairman and Federal Reserve Agent. Walton N. Moore, Deputy Chairman. J. U. Calkins, Governor. Class A: C.K.McIntosh San Francisco, Calif.., Dec. 31,1922 John Willis Baer Pasadena, Calif Dec. 31,1923 M. A. Buchan Palo Alto, Calif Dec. 31,1924 Class B: Elmer H. Cox San Francisco, Calif Dec. 31,1922 A. B. C. Dohrmann. .do Dec. 31 1923 William T. Sesnon .. .do ... . Dec. 31 1924 Class C: William Sproule do Dec. 31,1922 John Perrin .. .do Dec. 31,1923 Walton N. Moore . . do Dec. 31,1924 SPOKANE BRANCH. W. L. Partner, Manager. R. L. Rutter j Spokane, Wash. Dec. 31,1922 Peter McGregor : do Do. G. I. Toevs i do Do. W. L. Partner j do Do. (One vacancy) | PORTLAND BRANCH. Frederick Greenwood, Manager. Edward Cookmgham Portland, Oreg Dec. 31,1922 J. C. Ainsworth .do Do. Nathan Strauss. . ... .do Do. J. N. Teal. do Do. Frederick Greenwood do... Do. SEATTLE BRANCH. C. R. Shaw, Manager. M. F. Backus Seattle, Wash Dec. 31,1922 M.A.Arnold .. .do Do. Charles H. Clarke. . do Do. Charles E Peabody do .. Do. C.R Shaw do Do. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REGULATIONS OF THE BOARD. 349 DISTRICT NO. 12—FEDERAL RESERVE BANK OF SAN FRANCISCO—Continued. SALT LAKE CITY BRANCH. R. B. Mother well, Manager. Director. Residence. Term expires. L. H. Fanisworth Salt Lake City, Utah Dec. 31,1922 Chapin A. Day Ogden, Utah Do. G.G.Wright Salt Lake City, Utah Do. Lafayette Hanehett do .... Do. R. B. Mother well do Do. LOS ANGELES BRANCH. C. J. Shepherd, Manager. A. J. Waters | Los Angeles, Calif. Dec. 31,1922 Joseph F. Sartori ! do Do. Henry M. Robinson j do Do. Isaac B. Newton \ do Do. C. J. Shepherd j do Do FEDERAL ADVISORY COUNCIL. [Elected for year 1922.] 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, 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 o.—F. 0. Watts, president First National Bank, St. Louis, Mo. District No 9.—G. II. Prince, chairman Merchants National Bank, St. Paul, 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.—D. W. Twohy, president Old National Bank, Spokane, Wash. REGULATIONS OF THE FEDERAL RESERVE BOARD. WASHINGTON, May 6, 1921. The Federal Reserve Board transmits herewith its Regulation B, Series of 1921, superseding Regulation B, Series of 1920, relating to open-market purchases by Federal Reserve Banks of bills of exchange, trade acceptances, and bankers' acceptances under section 14 of the Federal Reserve Act. The new regulation is issued primarily for the purpose of permitting Federal Reserve Banks until further notice to purchase in the open market bankers' acceptances with maturities not in excess of six months, which grow out of transactions involving the importation or exportation of goods. Heretofore three months has been the maximum maturity of acceptances eligible for purchase by the Federal Reserve Banks. This amendment to the Board's regulation was recommended by the Federal Advisory Council at its conference in February, 1921, and by the Governors of the Federal Reserve Banks at their conference in April, 1921. Two considerations have led the Board to take this action: (1) The desire to widen the acceptance market by meeting the wants of savings banks and similar purchasers of bankers' acceptances who are now deterred from investing in acceptances of longer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 REPORT OF THE FEDERAL RESERVE BOARD. than three months' maturity, because of the lack of authority of Federal Reserve Banks to purchase longer maturities up to six months; (2) to provide more ample facilities for financing import and export trade with countries where either normal conditions or present abnormal conditions indicate the desirability of rendering assistance by making acceptances of maturities not exceeding six months eligible for purchase by Federal Reserve Banks. While the Federal Reserve Banks would, under ordinary conditions, prefer to confine their investments to paper of short maturity, that is, not exceeding three months, it is believed that the present emergency in the foreign trade situation would be relieved by a more liberal practice. Vigilant care, however, should be exercised by Federal Reserve Banks in purchasing acceptances of long maturities, in order that the liquidity of the aggregate investment in acceptances held by them should not be affected. In amending its regulation in the manner described, the Board looks to the good banking judgment and discretion of the accepting banks and of the Federal Reserve Banks to avoid any untoward results. To avoid misunderstanding, the Board desires to add that the results of this widening of the investment powers of the Federal Reserve Banks will be followed closely, with a view to such modification of its rules or amendment of its regulations as future developments may indicate to be necessary. The Board has also taken this occasion to make another slight amendment to Regulation B so that its terms will more clearly indicate the Board's purpose in permitting Federal Reserve Banks to purchase in the open market bankers' acceptances growing out of the domestic storage of goods other than readily marketable staples. W. P. G. HARDING, Governor. W. W. HOXTON, Secretary. REGULATION B, SERIES OF 1921. (Superseding Regulation B of 1920.) 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. II. 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, must have been accepted by the drawee prior to such purchase unless it is either accompanied or secured by shipping documents or by warehouse, terminal, or other similar receipt conveying security title or bears a satisfactory banking indorsement, and must conform to the relative requirements of Regulation A, except that— (a) A banker's acceptance growing out of a transaction involving the importation or exportation of goods may be purchased if it has a maturity not in exceed of six months, exclusive of days of grace, provided that it conforms in other respects to the relative requirements of Regulation A, and (6) A banker's acceptance growing out of a transaction involving the storage within the United States of goods actually under contract for sale and not yet delivered or paid for may be purchased, provided that the acceptor is secured by the pledge of such goods; and provided further that the acceptance conforms in other respects to the relative requirements of Regulation A. 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AMENDMENTS. 351 A banker's 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. AMENDMENTS TO FEDERAL RESERVE ACT. [PUBLIC—No. 329—66TH CONGRESS.] [S. 4436.] An Act To amend the Act approved December 23, 1913, known as the Federal Reserve Act. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the first paragraph of the Act approved December 24, 1919, known as the Edge Act, amending the Federal Reserve Act, be amended by adding at the end a proviso, so that the paragraph as amended will read as follows: "SEC. 25. (a) Corporations to be organized for the purpose of engaging in international or foreign banking or other international or foreign financial operations, or in banking or other financial operations in a dependency or insular possession of the United States, either directly or through the agency, ownership, or control .of local institutions in foreign countries, or in such dependencies or insular possessions as provided by this section, and to act when required by the Secretary of the Treasury as fiscal agents of the United States, may be formed by any number of natural persons, not less in any case than five: Provided, That nothing in this section shall be construed to deny the right of the Secretary of the Treasury to use any corporation organized under this section as depositaries in Panama and the Panama Canal Zone, or in the Philippine Islands and other insular possessions and dependencies of the United States." Approved, February 27, 1921. [PUBLIC—No. 331—66TH CONGRESS.] [S. 4683.] An Act To amend section 11 (m) of the Act approved December 23, 1913, known as the Federal Reserve Act, as amended by the Acts approved September 7, 1916, and March 3,1919. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 11 of the Act approved December 23, 1913, known as the Federal Reserve Act, as amended, be further amended by striking out the whole of subsection (m), and by substituting therefor a subsection to read as follows: '" (m) Upon the affirmative vote of not less than five of its members, the Federal Reserve Board shall have power to permit Federal reserve banks to discount for any member bank notes, drafts, or bills of exchange bearing the signature or endorsement of any one borrower in excess of the amount permitted by section 9 and section 13 of this Act, but in no case to exceed 20 per centum of the member bank's capital and surplus: Provided, however, That all such notes, drafts, or bills of exchange discounted for any member bank in excess of the amount permitted under such sections shall be secured by not less than a like face amount of bonds or notes of the United States issued since April 24,1917, for which the borrower shall in good faith prior to January 1, 1921, have paid or agreed to pay not less than the full face amount thereof, or certificates of indebtedness of the United States: Provided further, That the provisions of this subsection (m) shall not be operative after October 31, 1921." Approved, February 27, 1921. [PUBLIC—No.17—67TH CONGRESS.] [S. 86.] 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 25 (a) of the Federal Reserve Act, being the section? added to said Act by the Act approved December 24, 1919, be amended so that the first sentence of the paragraph prescribing the amount of capital stock a corporation organized under that section is required to have and prescribing also the manner in which such capital stock must be paid in, said paragraph being the fourth paragraph following subparagraph (c) of said section, shall read as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

552 REPORT OF THE FEDERAL RESERVE BOARD. "No corporation shall be organized under the provisions of this section with a capital stock of less than $2,000,000, one-quarter of which must be paid in before the corporation may be authorized to begin business, and the remainder of the capital stock of such corporation shall be paid in installments of at "least 10 per centum on the whole amount to which the corporation shall be limited as frequently as one installment at the end of each succeeding two months from the time of the commencement of its business operations until the whole of the capital stock shall be paid in: Provided, however, That whenever $2,000,000 of the capital stock of any corporation is paid in the remainder of the corporation's capital stock or any unpaid part of such remainder may, with the consent of the Federal Reserve Board and subject to such Tegulations and conditions as it may prescribe, be paid in upon call from the board •of directors; such unpaid subscriptions, however, to be included in the maximum of 10 per centum of the national bank's capital and surplus which a national bank is permitted under the provisions of this Act to hold in stock of corporations engaged in ^business of the kind described in this section and in section 25 of the Federal Reserve Act as amended: Provided further, That no such corporation shall have liabilities outstanding at any one time upon its debentures, bonds, and promissory notes in excess of ten times its paid-in capital and surplus. Approved, June 14, 1921. SUGGESTED AMENDMENT TO THE CLAYTON ACT. REPORT OF THE CLAYTON ACT COMMITTEE. The committee on the administration of the Clayton Act, after considerable detailed study of the present situation relating to interlocking directorates, has reached the conclusion that an effort should be made to obtain a further amendment to the Kern amendment to the Clayton Act, because of the great difficulty in determining whether or not there is " substantial competition" between banks within the meaning of the act, and because of the fact that the act in its present form operates in an illogical way and often defeats the very purpose for which it was enacted. The Kern amendment (the act approved May 15, 1916, as amended t>y the act approved May 26, 1920) authorizes the Federal Reserve Board to grant its consent to a private banker or to any officer, director, or employee of any member bank to become an officer, director, or employee of not more than two other banks "if such bank, banking association, or trust company is not in substantial competition with such banker or member bank." The words "substantial competition" have never had any accurate definition. So far as they have been construed by the courts in connection with other sections of the Clayton Act, they seem to have been held to mean "actual competition." The Board has construed the Kern amendment as applying to banks which either are not generally engaged in the same character of business or are not so situated as to appeal to the same customers or would-be customers, e. g., to trust companies doing a purely trust business and commercial banks, to banks doing the same kind of business but serving different communities, and to banks serving the same communities but having entirely different classes of customers. Thus uptown and downtown banks in New York City have been held not to be in "substantial competition" on the theory that the uptown banks do mostly a local business, lending to the retail trade or to neighboring manufacturers, while the down-town banks in the financial district receive their deposits from and make their loans to an entirely different class of customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AMENDMENTS. 353' On the other hand, the Board has ruled that if two banks are generally engaged in the same character of business and are so situated; as to appeal to the same customers or would-be customers, they necessarily must be deemed to be in u substantial competition" within the meaning of the Kern amendment, regardless of whether or not it is probable or possible that an interlocking directorate between them would result in injury to the public by making credit less available. The difficulty in construing the act has been enhanced by the change in the business of many of the trust companies since 1916. Trust companies which were at that time not doing a commercial business have since then extended considerable lines of credit. Many of them joined the Federal Reserve System during the war— some of them chiefly from patriotic motives, for they had not at that time any paper that could be rediscounted. In order to obtain any advantages from their membership in the system they were compelled to buy commercial paper or to extend loans to some of their depositors. These loans have increased recently because of the general credit situation, to the extent that they may be said to have come into considerable, and probably " substantial/7 competition with the national banks. A striking case was brought to the attention of your committee from Philadelphia. The Trust Co., before its admission to the Federal Eeserve System, did practically no commercial business. Its directors were most of them also directors in several of the large Philadelphia national banks. As the trust company and the national banks clearly were not then in competition, consent for the continuance of the interlocking directorates between them was granted by the Federal Reserve Board without question. In order to be in a position to receive some assistance from the Federal Reserve Bank m case of need, the trust company purchased commercial paper in the open market, and also as the pressure for loans increased during the past year or two began to extend loans to some of its depositors. Its officers report that depositors who had never borrowed before had during tne past year asked for accommodation through the necessity of using every avenue of credit. Now, the granting of this credit brings the trust company into competition with the national banks and raises the question whether it is not in " substantial competition77 with them, within the meaning of the Clayton Act as amended, and whether the Board should not revoke its consent for the interlocking directorates. In this particular case, rather than break up long-standing relationships, the trust company7s officers talk of reducing their commercial business, and point to the fact that it has been reduced from about $11,000,000 in December, 1920, to $8,000,000 in March, 1921. In other words, they prefer to give up their commercial business if the continuance of their commercial business is going to mean the break-up of their directorate. Surely Congress never dreamed that the enforcement of the act could have such an effect. Somewhat similar cases have come to the Board7s attention from New York and other places. Some banks prefer not to have their directors serve any other banking institution, but others point out what appear to be excellent, reasons why some of their directors should continue to be directors Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 REPORT OF THE FEDERAL RESERVE BOARD. of not to exceed one or two other banks. One instance cited in New York is that of Mr. , a director in the Trust Co. and the National Bank. The trust company has added considerably to its commercial business, and though it is still only a fractional part of its total business it is clearly a question whether it constitutes "substantial competition" within the meaning of the law. Mr. — , the committee was told, is an exceedingly valuable member of the board of directors of the trust company because of his special knowledge of real estate, but if forced to withdraw from the directorate of one or the other of the institutions will probably feel compelled to resign from the trust company because he is the representative of large family holdings of stock in the national bank. It is believed that his presence on the boards of both institutions does not operate to restrict credit or competition, and there can be no possible reason to hold that his resignation from either board would be in the public interest. Yet under the law as it stands the committee feels that it is at least doubtful whether it is warranted in approving his continuance and must add that if the trust company continues to increase its competition with the national bank, Mr. 's resignation from one of the directorates must be required. The trust company, in other words, must be penalized for competing. Another anomalous result of the Clayton Act in its present lorm is the fact that if competition between two banks has already been eliminated through common ownership of their stock they are not in substantial competition and, therefore, the Board has power to permit interlocking directorates between them. The Board has discretionary power to refuse a permit even if the banks are not in substantial competition, but never has refused its consent in such cases, probably because it thought that to do so would accomplish no good purpose. On the contrary, the Board has granted its consent in a number of cases upon a showing that competition between the banks had been eliminated through common stock ownership, though it originally had refused the consent applied for because it appeared from the evidence submitted that they were in substantial competition. In some cases, therefore, the Clayton Act operates to favor those persons who have eliminated competition between banks, while it penalizes joint directors who have permitted the growth of competition between the banks which they serve. Another undesirable feature of the Clayton Act in its present form is the fact that it affects national banks and State banks differently. It relates primarily to the eligibility of persons to serve as directors of banks ^organized or operating under the laws of the United States." That term was construed originally as applying not only to the national banks and banks doing business in the District of Columbia, but also to State banks and trust companies which became members of the Federal Reserve System. After the passage of the act of June 21, 1917, however, which amended section 9 of the Federal Reserve Act so as to provide that State banks and trust companies becoming members of the Federal Reserve System shall retain their full charter and statutory rights as State banks or trust companies, the Attorney General rendered an opinion to the effect that State member banks are not limited in their choice of directors by the terms of the Clayton Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AMENDMENTS. 355 Act merely because they operate under the provisions of the Federal Reserve Act. The result is that under this construction, the Clayton Act restricts national banks in the choice of their directors, but does not restrict State banks and trust companies, even though they are members of the Federal Reserve System. A number of national bank directors have expressed the opinion that this gives State banks and trust companies an advantage over national banks. This condition could be remedied to some extent by an amendment modifying the rigid limitations of the Kern amendment and giving the Board a little more latitude in granting permits to national bank directors to serve not more than three banks coming within the classes prohibited by the Clayton Act. An examination of the annexed report of Federal Reserve Agent Jay, with its exhibits, will show that a great improvement in conditions of credit competition has taken place since the time of the Pujo report, and many interlocking directorates which existed at that time have been eliminated. Mr. Jay says: In other words, through the influence of membership in the Federal Reserve System and of present conditions, the great trust companies with their immense credit power are now, in spite of having interlocking directorates with national banks, entering the field of national banks and placing their credit facilities at the disposal of commerce, industry, and agriculture, where before their funds were mainly invested in bonds or loans on securities. A change more radical than the framers of the Clayton Act hoped to effect has come about for other reasons and in spite of interlocking directorates, and immense resources hitherto unavailable have been opened directly to the production and distribution of goods. Furthermore, when the Clayton Act and the Kern amendment were enacted, the Federal Reserve System was still in the organization stage, its facilities were but little developed or used. Few realized the extent to which it might be used by banks and the independence of one another which it gave them. The control or potential control of credit which the Pujo committee reported as existing and which served as the basis for that section of the Clayton Act relating to bank directors would be extremely difficult to-day, unless the control of all large institutions were obtained, for each member of the Federal Reserve System is independent of other members to the extent that it can go to its reserve bank and obtain at any time such credit as may properly be granted it for the use of its customers. The conditions existing at the time of the passage of the Clayton Act have been entirely changed, not only through the enforcement of that act as amended, but also through the operation of the Federal Reserve Act. The banking reserves of the country are no longer concentrated in half a dozen large banks in New York, or in Chicago, but are in the Federal Reserve Banks. Your committee believes, therefore, that it would be desirable for Congress to amend the Clayton Act so as to authorize the Federal Reserve Board to permit interlocking directorates in not exceeding three banks, where the Board is satisfied that such an interlocking directorate will not result in a restriction of credit or lessening of competition between the banks involved, the Board to have full power, however, to revoke such permits at any time. Your committee further believes that such an amendment would serve to carry out more fully what seems to have been the intention of Congress in enacting the Kern amendment and that it would be advisable for the Board to recommend such an amendment to Congress. As intimated above, however, your committee is aware that there are various opinions as to the policy of permitting interlocking directorates, and there is a growing class of bankers who believe that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 BEPORT OF THE FEDERAL RESERVE BOARD. it is not in the interest of a bank for its directors to serve as directors of any other bank. Thus, Mr. Perrin, in his report on the Clayton Act situation, recommends that many interlocking directorates be discontinued and states that he has talked with a number of bankers in the Twelfth District who have expressed a desire that the directors of their banks should not serve as directors of any other banks. In view of the varying opinions on the subject your committee believes that it would be advisable to obtain the views of all the Federal Reserve Agents as to the desirability and form of any amendment to the Clayton Act before the Board makes a definite recommendation to Congress. A tentative form of an amendment along the lines suggested above is submitted herewith, and your committee recommends: (1) That a copy of this report with the inclosed draft of amendment be sent to the chairman of each Federal Reserve Bank for study and criticism, with a request that he report thereon not later than April 15 in order that the Board may promptly recommend an amendment at the coming session of Congress. (2) That existing permits heretofore granted by the Board be not disturbed until the probability of the enactment of such an amendment can be ascertained, and that the Board postpone indefinitely the review of the Clayton Act situation which has been ordered for April 1st. (Signed) EDMUND PLATT, (Signed) C. S. HAMLIN, ' Committee on Clayton Act. APRIL 1, 1921. PROPOSED DRAFT OF BILL TO AMEND CLAYTON ACT. 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, and May 26,1920. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 8 of the 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 Acts of May 15, 1916, and May 26, 1920, be further amended by striking out the period at the end of the second clause of said section and adding to said clause the following: "or if in the judgment of the Federal Reserve Board no restriction of banking credit or lessening of competition will result." [NOTE.—This bill was introduced in the House of Representatives on April 21 1921, by Mr. McFadden, as H. R. 4826.] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ATLANTA PAR CLEARANCE CASE. 357 SUPREME COURT DECISION IN ATLANTA PAR CLEARANCE CASE. Following is the text of the opinion of Mr. Justice Holmes pronouncing the decision of the United States Supreme Court in the case of American Bank & Trust Co. v. Federal Reserve Bank of Atlanta (41 S. C. Kept., 499): SUPREME COURT OF THE UNITED STATES. No. 679, OCTOBER TERM, 1920. Appeal from the United AMERICAN BANK AND TRUST COMPANY ET AL., APPELLANTS, States Circuit Court of v. Appeals for the Fifth FEDERAL RESERVE BANK OF ATLANTA, GEORGIA, ET AL. Circuit. (May 16, 1921.) Mr. Justice Holmes delivered the opinion of the Court. This is a bill in equity brought by country banks incorporated by the State of Georgia against the Federal Reserve Sank of Atlanta, incorporated under the laws of the United States, and its officers. It was brought in a State Court but removed to the District Court of the United States on the petition of the defendants. A motion to remand was made by the plaintiffs but was overruled. The allegations of the bill may be summed up in comparatively few words. The plaintiffs are not members of the Federal Reserve System and many of them have too small a capital to permit their joining it—a capital that could not be increased to the required amount in the thinly populated sections of the country where they operate. An important part of the income of these small institutions is a charge for the services rendered by them in paying checks drawn upon them at a distance and forwarded, generally by other banks, through the mail. The charge covers the expense incurred by the paying bank and a small profit. The banks in the Federal Reserve System are forbidden to make such charges to other banks in the System. (Federal Reserve Act of Dec. 23, 1913, eh. 6, sec. 13; 38 Stat., 263; amended Mar. 3, 1915, ch. 93; 38 Stat., 958; Sept. 7, 1916, ch. 461; 39 Stat., 752; and June 21, 1917, ch. 32, sees, 4, 5; 40 Stat., 234, 235.) It is alleged that in pursuance of a policy accepted by the Federal Reserve Board the defendant bank has determined to use its power to compel the plaintiffs and others in like situation to become members of the defendant, or ar least to open a nonmember clearing account with defendant, and thereby under the defendant's requirements, to make it necessary for the plaintiffs to maintain a much larger reserve than in their present condition they need. This diminution of their lending power coupled with the loss of the profit caused by the above mentioned clearing of bank checks and drafts at par will drive some of the plaintiffs out of business and diminish the income of all. To accomplish the defendants' wish they intend to accumulate checks upon the country banks until they reach a large amount and then to cause them to be presented for payment over the counter or by other devices detailed to require payment in cash in such wise as to compel the plaintiffs to maintain so much cash in their vaults as to drive them out of business or force them, if able, to submit to the defendants' scheme. It is alleged that the proposed conduct will deprive the plaintiffs of their property without due process of law contrary to the Fifth Amendment of the Constitution and that it is ultra vires. The bill seeks an injunction against the defendants collecting checks except in the usual way. The District Court dismissed the bill for want of equity and its decree was affirmed by the Circuit Court of Appeals (Nov. 19, 1920). The plaintiffs appealed, setting up want of jurisdiction in the District Court and error in the final decree. We agree with the Court below that the removal was proper. The principal defendant was incorporated under the laws of the United States and that has been established as aground of jurisdiction since Osborne v. Bank of the United States (9 Wheat., 738. Pacific Railroad Removal Cases, 115 U. S., 1. Matter of Dunn, 212 U. S., 374). We shall say but a word in answer to the appellants' argument that a suit against such a corporation is not a suit arising under those laws within section 24 of the 85227—22 24 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

358 REPORT OF THE FEDERAL RESERVE BOARD. Judicial Code of March 3, 1911 (c. 231; 36 Stat., 1087). The contrary is established, and the accepted doctrine is intelligible at least since it is part of the plaintiffs' case that the defendant bank existed and exists as an entity capable of committing the wrong alleged and of being sued. These facts depend upon the laws of the United States. (Bankers Trust Co. v. Texas & Pacific Ry. Co., 241 U. S., 295, 306, 307. Texas 6c Pacific Ry. Co. v. Cody, 166 U. S., 606. See further Smith v. Kansas City Title 6c Trust Co., Feb. 28, 192i.) A more plausible objection is that by the Judicial Code, section 24, sixteenth, except as therein excepted national banking associations for the purposes of suits against them are to be deemed citizens of the States in which they are respectively located. But we agree with the Court below that the reasons for localizing ordinary commercial banks do not apply to the Federal Reserve Banks created after the Judicial Code was enacted and that the phrase '' national banking associations" does not reach forward and include them. That phrase is used to describe the ordinary commercial banks, whereas the others are systematically called "Federal Reserve Banks." We see no sufficient ground tor supposing that Congress meant to open the questions that the other construction would raise. On the merits we are of opinion that the Courts below went too far. The question at this stage is not what the plaintiffs may be able to prove, or what may be the reasonable interpretation of the defendants' acts, but whether the plaintiffs have shown a ground for relief if they can prove what they allege. We lay on one side as not necessary to our decision the question of the defendants' powers, and assuming that they act within them consider only whether the use that according to the bill they intend to make of them will infringe the plaintiffs' rights. The defendants say that the holder of a check has a right to present it to the bank upon which it was drawn for payment over the counter, and that however many checks he may hold he has the same right as to all of them and may present them all at once, whatever his motive or intent. They ask whether a mortgagee would be prevented from foreclosing because he acted from disinterested malevolence and not from a desire to get his money. But the word "right" is one of the most deceptive of pitfalls; it is so easy to slip from a qualified meaning in the premise to an unqualified one in the conclusion. Most rights are qualified. A man has at least as absolute a right to give his own money as he has to demand money from a party that has made no promise to him- yet if he gives it to induce another to steal or murder the purpose of the act makes it a crime. A bank that receives deposits to be drawn upon by check of course authorizes its depositors to draw checks against' their accounts and holders of such checks to present them for payment. When we think of the ordinary case the right of the holder is so unimpeded that it seems to us absolute. But looked at from either side it can not be so. The interests of business also are recognized as rights, protected against injury to a greater or less extent, and in case of conflict between the claims of business on the one side and of third persons on the other, lines have to be drawn that limit both. A man has a right to give advice, but advice given for the sole purpose of injuring another's business and effective on a large scale, might create a cause of action. Banks as we know them could not exist if they could not rely upon averages and lend a large part of the money that they receive from their depositors on the assumption that not more than a certain fraction of it will be demanded on any one day. If without a word of falsehood but acting from what we have called disinterested malevolence a man by persuasion should organize and carry into effect a run upon a bank and ruin it, we can not doubt that an action would lie. A similar result even if less complete in its effect is to be expected from the course that the defendants are alleged to intend, and to determine whether they are authorized to follow that course it is not enough to refer to the general right of a holder of checks to present them, but it is necessary to consider whether the collection of checks and presenting them in a body for the purpose of breaking down the petitioner's business as now conducted is justified by the ulterior purpose in view. If this were a case of competition in private business it would be hard to admit the justification of self interest considering the now current opinion as to public policy expresssed in statutes and decisions. But this is not private business. The policy of the Federal Reserve Banks is governed by the policy of the United States with regard to them and to these relatively feeble competitors. We do not need aid from the debates upon the statute under which the Reserve Banks exist to assume that the United States did not intend by that statute to sanction this sort of warfare upon legitimate creations of the States. Decree reversed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. FEDERAL RESERVE BOARD, OFFICE OF THE GOVERNOR, Washington, October 81, 1921. Subject: Response to S. Res. 153. SIR: On October 18, 1921, the Federal Reserve Board received from the Secretary of the Senate a resolution of the Senate (S. Res. 153), dated October 14, 1921, reading as follows: Whereas, it is charged in the public press of the country and upon the floor of the Senate that the Federal Reserve Board has been guilty of an amazing waste of public money in increase of salaries to officers and employees of the New York Federal Reserve Bank; and Whereas, since 1918 in the New York branch alone they have increased the number of officers and employees 279, or about 10 per cent, while they have increased the salaries about 50 per cent, paying its officers and employees all the way from f 10,000 $12,000, $25,000, $30,000 and one as high as $50,000, and that prior to 1918, 60 per cent of these officers never received over $1,500 to $2,500, but are now drawing salaries as high as $10,000; and Whereas, the official reports of the Federal Reserve Board show that in the calendar year of 1920 the Federal Reserve Bank of New York's pay roll amounted to $4,639,- 273, and for the calendar year 1918 the pay roll was $3,104,830, showing an actual increase in pay roll since the close of the war of $1,534,443; and Whereas, it is charged that the governor of the Federal Reserve Board has stated that the employees of the Federal reserve banks are not paid by the Government nor paid out of revenue derived from taxation, but are private business men and in the banking business to make money; and Whereas, under the provisions of section 7 of the Federal reserve act a large per cent of the net receipts made and saved by the Federal board shall be paid into the Federal Treasury, and if the allegations herein made are true the Treasury of the United States has been deprived of a vast sum of money; Therefore be it Resolved, That the Federal Reserve Board, as early as practicable, be, and it is hereby, directed to furnish to the Senate the number of employees, together with their respective salaries, employed by the Federal Reserve Bank in New York, as well as in the other Federal reserve banks in the country, and the expenditures made by each branch bank in the erection of public buildings and the general expenses in the administration of each Federal reserve bank, and how much of the net earnings have been paid to the United States as a franchise tax. The board begs leave to call attention to a clause in section 10 of the Federal reserve act, which reads: "The Federal Reserve Board shall annually make a full report of its operations to the Speaker of the House of Representatives, who shall cause the same to be printed for the information of the Congress." In compliance with the law the Federal Reserve Board has submitted reports for the years 1914 to 1920, both inclusive. These reports have described in detail and at great length the operations of the Federal reserve banks, and there have been transmitted with them exhibits showing the salaries paid by the several Federal reserve banks to officers and employees, except that the report for 1914 shows the salaries paid senior officers only. In that report 359 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 REPORT OF THE FEDERAL RESERVE BOARD. (p. 190) the board stated that while it had in a few cases approved the salaries fixed by banks for officers other than the governor, as the banks in several districts had not yet completed their organizations, it was "not deemed advisable to give, at this time, a list, which would necessarily be incomplete of the salaries paid to the subordinate officials of all the banks.'7 In the report for the year 1915 a detailed list of the salaries of all officers and employees, names omitted, is given for each of the Federal reserve banks as Exhibit J on pages 97 to 99. In the report for the year 1916 this information appears as Exhibit N on pages 182 to 184. In the report for 1917 it appears as Exhibit N on pages 194 to 196. It appears in the report for 1918 as Exhibit N on pages 244 to 246. In the text of the report for that year (p. 29) attention was called to the great expansion of the business of the Federal reserve banks with the consequent necessity of making large additions to their working forces. The number of officers and employees in all departments at each of the Federal reserve banks at the close of the year was summarized on the same page. In the report for the year 1919 a statement of personnel and salaries'at all Federal reserve banks appeared as Exhibit M on pages 274 to 277. In the text of that report, on page 34, a table was given showing the number of officers and employees at each Federal reserve bank at the close of the year 1919 as compared with the number at the end of the previous year, and attention was called also to the average salary paid officers and employees by each Federal reserve bank (p. 35). The report for the year 1920 shows the salaries of officers and employees of the Federal reserve banks, as of December 31, 1920, on pages 272 to 274. These tables have/ in each instance, since the establishment of branches of Federal reserve banks, included the salaries paid at the branches. In its annual report for the year 1918 (p. 30-31), the board called attention to the fact that the great increase in volume of business had rendered it necessary for all Federal reserve banks to arrange for the acquisition of permanent quarters and gave in detail the expenditures that had been made by several of the banks for building sites and the erection of buildings. Similar information was given in the report for 1919 (pp. 37-38) and in the report for 1920 (pp. 93-96). In addition to this the sum total of these investments, as carried on the books of all Federal reserve banks, covering both their head offices and their branches, appears in the statement which the Federal Reserve Board publishes each week for the 12 Federal reserve banks combined. This item appears also each week in the separate statements published by each Federal reserve bank. AUTHORITY OF DIRECTORS OF FEDERAL RESERVE BANKS AND SUPER- VISORY POWERS OF FEDERAL RESERVE BOARD. Inasmuch as the resolution of the Senate refers to the "New York Branch" and to "the expenditures made by each branch bank in the erection of public buildings," the board respectfully submits a brief statement regarding the character of the Federal reserve banks. In doing so the board disclaims any intention of seeking to evade responsibility in the matters referred to in the resolution of the Senate, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 361 but merely desires to avoid any possible grounds for misunderstanding the nature of its responsibility. The Federal reserve act did not establish a central bank. On the contrary, it made possible the establishment of as many as 12 Federal reserve banks, each almost wholly independent of the others in operation as well as in local policies. From a legal standpoint these banks are private corporations organized under a special act of Congress, namely, the Federal reserve act. They are not in a strict sense of the word Government banks, but are only quasi governmental institutions in that they are under the general supervision of the Federal Reserve Board and have on their boards of directors three men representing the Government, who are appointed by the Federal Reserve Board. Each bank has nine directors, and the other six are chosen by the member banks, which are the sole stockholders of the Federal reserve bank. Section 4 of the Federal reserve act provides that each Federal reserve bank after receiving its charter from the Comptroller of the Currency " shall become a body corporate and as such * * * shall have power— First. To adopt and use a corporate seal. Second. To have succession for a period of 20 years from its organization unless it is sooner dissolved by an act of Congress or unless its franchise becomes forfeited by some violation of law. Third. To make contracts. Fourth. To sue and be sued, complain and defend in any court of law or equity. Fifth. To appoint by its board of directors such officers and employees as are not otherwise provided for in this act, to define their duties, require bonds of them and fix the penalty thereof, and to dismiss at pleasure such officers or employees. Sixth. To prescribe by its board of directors by-laws not inconsistent with law, regulating the manner in which its general business may be conducted and the privileges granted to it by law may be exercised and enjoyed. Seventh. To exercise by its board of directors or duly authorized officers or agents all powers specifically granted by the provisions of this act and such incidental powers as shall be necessary to carry on the business of banking within the limitations prescribed by this act. Section 4 further provides that " every Federal reserve bank shall be conducted under the supervision and control of a board of directors. The board of directors shall perform the duties usually appertaining to the office of directors of banking associations and all such duties as are prescribed by law." It is also provided in section 4 that " any compensation that may be provided by boards of directors of Federal reserve banks for directors, officers, or employees shall be subject to the approval of the Federal Reserve Board." Section 11 of the Federal reserve act authorizes and empowers the Federal Reserve Board— (/) To suspend or remove any officer or director of any Federal reserve bank, the cause of such removal to be forthwith communicated in writing by the Federal Reserve Board to the removed officer or director and to said bank. (g) To require the writing off of doubtful or worthless assets upon the books and balance sheets of Federal reserve banks. (h) To suspend, for the violation of any of the provisions of this act, the operations of any Federal reserve bank, to take possession thereof, administer the same during the period of suspension, and, when deemed advisable, to liquidate or reorganize such bank. (j) To exercise general supervision over said Federal reserve banks. Section 21 of the Federal reserve act prescribes that "the Federal Reserve Board shall, at least once each year order an examination ; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 REPORT OF THE FEDERAL, RESERVE BOARD. of each Federal reserve bank and upon joint application of 10 mem- ; ber banks the Federal Reserve Board shall order a special examination and report of the condition of any Federal reserve bank." Other sections of the act empower the Federal Reserve Board to prescribe rules and regulations governing various transactions which may be engaged in by Federal reserve banks, but the foregoing quotations embody all the authority which has been given the board over the routine business and the administration of the banks. The board is not empowered to select the officers and employees of the Federal reserve banks, for it can appoint only the Federal reserve agent and his assistants, nor does it initiate the salaries paid the officers and employees of the Federal reserve banks. These are matters which come within the scope of the authority delegated to the directors of the Federal reserve banks in section 4 of the act. The law makes it clear that in approving compensation proposed by the directors the board must necessarily be governed in large measure by their representations. The directors are immediately responsible for the administration of the bank and are familiar with the. requirements for its efficient operation, with the qualifications of the officers and employees, with local conditions, such as cost of living, competition for services by member and other banks of the community, and the fair value of the services rendered. The duty of the directors as to the management of a Federal reserve bank is quite analogous to that of directors of national banks with respect to those institutions. The Federal Reserve Board has not approved in a perfunctory way salaries proposed by Federal reserve bank directors, but has always called for full information before taking action. In some cases it has withheld approval pending the personal presentation of the matter by a committee of the directors, and in other instances it has declined to approve compensation proposed. But the board has taken the position generally that as the directors are primarily responsible for the operation of the banks, great weight must be given to their representations. There is appended, as Exhibit A, a list of the directors of all Federal reserve banks and branches. FEDERAL RESERVE BANK BUILDINGS. The buildings owned by the Federal reserve banks, or which are now in course of construction, are not, in the view of the board, "public buildings.7' They constitute a part of the invested assets of the respective banks, the funds for their acquisition or construction were not provided by a congressional appropriation, the title is vested in the Federal reserve bank and not in the United States, and they are subjct to State and local taxation. (uFederal reserve banks, including the capital stock and surplus therein, and the income derived therefrom shall be exempt from Federal, State, and local taxation, except taxes upon real estate.7; Sec. 7.) At the instance of the Federal Reserve Board a bill was introduced during the third session of the Sixty-fifth Congress to amend section 7 of the Federal reserve act by permitting Federal reserve banks to create a maximum suplus out of earnings equal to 100 per cent of their paid-in capital, instead of 40 per cent, as originally provided. When the Committees on Banking and Currency of the Senate and House of Representatives were considering this bill early in the year Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 363 1919, the governor of the Federal Reserve Board called the attention of the committees to the fact that all Federal reserve banks would be obliged to acquire or construct their own buildings as it was not practicable to lease adequate quarters and otherwise provide suitable vaults for the custody of the large amounts of cash and securities held by the banks. Especial attention was called to the large expenditures which would have to be made in providing buildings, and one argument made in favor of the bill was that the banks should be permitted to increase their surplus in order to reduce the proportion to the banks7 capital account of the fixed assets represented by the buildings. The committees were so impressed with this argument that the bill as reported, which became the act of March 3, 1919, amending section 7, went beyond the board's recommendations and provided that Federal reserve banks might create a surplus out of earnings equal to 100 per cent of their subscribed capital, plus 10 per cent of the net earnings annually, after such a surplus had been created. There does not appear to be any specific requirement anywhere in the Federal reserve act that the board should approve the expenditures made by the Federal reserve banks in their building operations, but under its power of general supervision the board informed the banks that they would be required to submit for the consideration of the board all options for the purchase of real estate, all plans and specifications for buildings and vaults, and that they should not enter into any contracts involving expenditures for these purposes until authorized to do so by the board. In order that the board might be in position more intelligently to pass upon these various matters, it decided to employ a consulting architect who should devote his entire time to Federal reserve building projects. In the interest of economy it was determined to engage as consultant the same architect who had already been employed in a similar capacity by the Federal Reserve Bank of New York. Mr. Alexander B. Trowbridge, of the firm of Trowbridge & Ackerman, architects, of New York City, was induced to sever his connection with his firm and to enter into the employ of the Federal Reserve Board as consulting architect, at an annual salary of $6,666.66, which has not been increased. This is one-third of his total salary of $20,000, the other two-thirds being paid by the Federal Reserve Bank of New York. He began his work in April, 1919. At that time only one Federal reserve bank building—that at Atlanta—had been completed (p. 38, annual report for 1919) and the working plans and specifications for the Richmond and Dallas buildings were finished. Since then, the consulting architect has appeared as consultant in connection with the projects for New York, Boston, Chicago, Kansas City, Cleveland, San Francisco, Minneapolis, and St. Louis, and with the new vault at Philadelphia, the bank there being the only one which is housed in a purchased building. He has also been consulted in connection with the additions to the Atlanta bank, the annex buildings in Richmond and New York, and with branch banks in Buffalo, New Orleans, El Paso, Houston, Louisville, Nashville, and Oklahoma City. As consulting architect he has— (1) Discussed with bank officers the property under consideration for purchase, and advised as to its advantages and disadvantages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 REPORT OF THE FEDERAL RESERVE BOARD. (2) Advised bank officers in the matter of selecting an architect. (3) Consulted with the banks and their architects as to the size, design, and planning of the proposed buildings, during the preliminary stages. (4) When working drawings and specifications were completed, examined them for the purpose of detecting and having eliminated any wasteful or extravagant features. (5) Advised the banks and their architects as to the best methods of vault construction, so as to obtain the maximum amount of protection for the money expended. (6) Consulted with ana advised the banks in connection with the selection of contractors. (7) Assisted the banks in drawing up contracts, both by preparing contracts and by studying and analyzing contracts prepared by others for the signatures of the banks. (8) Acted as arbiter in case of disputes where contractors claimed extras which the banks did not consider justified. (9) Advised as to the necessity for changes, additions, and omissions during the course of construction of the buildings. (10) Reported to the Federal Reserve Board from time to time in connection with the above activities. There has been no attempt to exercise centralized control. The services have been advisory and not mandatory in character. It has been possible, through a tactful presentation, to apprise bank officers and their architects of the wishes of the Federal Reserve Board to keep designs simple and to avoid the use of meaningless ornament and costly material. Good material simply designed and detailed has been recommended. The underlying purpose of the board in the employment of a consulting architect has been to secure well constructed, serviceable buildings of dignified aspect but without any display of costly finish which is unnecessary and in questionable taste. The board has recognized the necessity of adequate provision for future growth and can cite numerous instances in growing cities where great expense has been incurred because of shortsightedness in omitting preparation of this kind. The office of the consulting architect has at all times been open to bank officers and their architects. A great many conferences of importance have taken place there and the consulting architect has personally visited a number of the banks and has conferred with building committees in their own cities. All of this has been done at a very small expense to the Federal Reserve System. The consulting architect has given up his private practice and has devoted all of his time to the work of the board. His staff consists of one assistant, his secretary and stenographer, with occasional help from a draftsman who is in the employ of the Federal Reserve Bank of New York. It is estimated that the total sum paid in salaries to the consulting architect and his staff during the two and one-half years he has been in the board's service amounts to one-twentieth of 1 per cent of the approximate amount of all sums set apart for Federal reserve bank buildings during that period. There are attached hereto (Exhibit B) tables relating to the real estate purchased by the Federal reserve banks and the building Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 365 operations which have been engaged in. These tables show for each Federal reserve bank the original investment in property purchased, the amount expended in remodeling and in the construction of new buildings, the amounts charged off on account of depreciation and amortization, and the book value of bank premises accounts as of September 30, 1921. Explanatory data have also been added showing the dates on which real estate was purchased by each Federal reserve bank, the number of square feet of ground purchased, amounts paid therefor, the cost of building operations to date, and the estimated cost to complete buildings in course of construction. It will be noted from these tables that the total amount expended for banking houses by all Federal reserve banks and branches to the end of September, 1921, was $36,158,000, or about 60 per cent of the amount of franchise taxes paid to the Government at the end of 1920 and about the same proportion of the amount which it is estimated will be paid to the Government at the end of the year 1921. It should be borne in mind, however, in considering building operations that the Federal reserve banks in acquiring building sites and constructing bank buildings are making capital expenditures and consequently these operations do not diminish in any way the amount of franchise taxes payable to the United States Government. The amount of the franchise tax is adversely affected only to the extent that the Federal reserve banks are authorized to charge depreciation and amortization allowances on their bank premises to current net earnings. As the Federal Reserve Bank of New York has engaged in the largest and most expensive of all the building projects, and as it has been made the subject of especial criticism, the board submits herewith (Exhibit C) copy of a statement which has already been submitted by the governor of that bank to the Joint Commission of Agricultural Inquiry of Congress. This statement sets forth in minute detail all facts regarding the acquisition of the real estate, employment of architects, preparation of plans and specifications, letting of contracts, and scope of the building. There are appended also tables showing the large volume of routine operations of the bank, which call for the employment of a large force of employees, whose number in turn renders a large building necessary. The board wishes to add that like care has been taken in the preparation of plans and specifications for all other Federal reserve bank buildings, but elaborate statements giving details of all Federal reserve bank buildings are not included in this response to the Senate because of the added length such statements would give to this communication. SALARY POLICY OF FEDERAL RESERVE BANKS. There have been prepared for use in this communication certain tables which appear as Exhibit D. These tables show the number of officers and employees of all Federal reserve banks, with officers' salaries in detail and employees7 salaries in the aggregate, and, in addition, the general expenses in the administration of each Federal reserve bank. They also give for purposes of comparison data as to the increase in the routine operations of the banks. In connection with these tables, the board begs to remark that the officers of Fed- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 REPORT OF THE FEDERAL RESERVE BOARD. eral reserve banks are not officers of the United States Government or of any of its departments. Each Federal reserve bank is now the largest banking institution in its district and the conduct of the business of a Federal reserve bank, which has transactions many times greater than those of the largest of its member banks, witn great responsibilities to the member banks, to the public, and to the Treasury of the United States, requires the services in executive and other capacities of trained and competent officials, who will devote all of their time to the work of the bank, not only in the ordinary routine but in the study of a great variety of technical subjects. It is essential that the services be obtained of men who can be relied upon to measure up to their duties and responsibilities. The officers and employees of Federal reserve banks are not permitted to engage in any other business, to take part in political activities, nor to hold public office. Their service in the Federal reserve bank is not a stepping-stone to a political career nor does it afford means of outside financial profit. The directors of Federal reserve banks have repeatedly pointed out to the board that it would be impossible to secure the services of competent and efficient officials for the Federal reserve banks were their salaries to be measured by the salaries paid to the political officers of the Government. With few exceptions, all officers and employees of the Federal reserve banks are dependent upon their salaries for livelihood. During the year 1919 the rate of compensation at Federal reserve banks was generally advanced, both as to officers and employees. This was due to greater competition for services, increased cost of living, and to a very great increase in the volume of transactions. In its annual report for 1918 (p. 29) the board discussed the necessity, particularly with respect to junior officers and employees, of paying salaries approximating the salaries paid by the large member banks in the cities where the Federal reserve bank are located. Experience has shown that many of the larger members banks are disposed to draw upon the Federal reserve banks for men to fill high official positions. During the past six years five governors of Federal reserve banks have resigned in order to accept executive positions with other banking institutions at much higher salaries than they were receiving at the Federal reserve banks, and the same is true with respect to a considerable number of deputy governors and junior officers. In order to retain the services of officers who are constantly being tempted with outside offers at high salaries, it has become necessary to recognize this competition, and while the board has in no case approved salaries for senior officers of Federal reserve banks as high as those paid officers of similar rank by the larger member banks in the principal cities of the country, it has recognized from the outset that the salaries paid junior officers, heads of departments, and clerks must be in line with those paid by the larger member banks in the various Federal reserve cities. If, in order to reduce expenses, the policy should be adopted of making the Federal reserve banks mere training schools for bank officers, it does not seem possible, because of the frequent changes involved, that the banks would have the degree of efficiency in administration and smoothness of operation which they would have if the compensation paid be sufficiently liberal to retain the services of trained and capable men. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDEKAL RESERVE BANKS. 367 The board does not for a moment believe that the directors of any Federal reserve bank, in fixing salaries or in authorizing expenditures in developing the business, have been actuated by the slightest desire to deprive the Government of the revenue which it is entitled to receive under the terms of section 7 of the Federal reserve act, and most assuredly the Federal Reserve Board would not be a party to such undertaking. In this connection the board invites attention to the views of a former Secretary of the Treasury, and ex officio chairman of the Federal Reserve Board, Hon. W. G. McAdoo. At a meeting of the Federal Reserve Board on December 14, 1918, he advocated approval of a salary of $50,000 per annum, which the directors of the Federal Reserve Bank of New York had voted for the governor of that institution, and stated that his attitude had been that during the formative period of the Federal reserve system comparatively low salaries should be paid until the business of the banks could be established and a fair measure obtained of their operations and a more accurate realization reached of the dimensions of the problems and responsibilities of the banks' officers, stating that previously he had opposed an increase in the salary under consideration only because the country was at war. He said, now that the business of the banks had been well established and they were making large earnings for the Government, the time had come when the office of governor of a Federal reserve bank should command on its merits a fair and just compensation, and that he would vote to fix the salary of the governor of the Federal Reserve Bank of New York at the amount proposed by the directors of the bank, to wit, $50,000 per annum. He stated it as his view that the principle governing the fixing of salaries of officers of Federal reserve banks should be that the salary be made sufficiently attractive to make a man willing to adopt the Federal reserve system as a permanent career, having its rewards in the way of promotion like any other institution. He opposed the view that the office of head of a Federal reserve bank should be considered on a parity with high Government office, stating that heads of Federal reserve banks could not be said to enjoy that magnitude of power and prestige pertaining to high Government office, while the bank officers were yet placed in a different position from those engaged in private institutions in that they were affected by the mutations of public life and controlled by a changing public board. There is transmitted herewith as Exhibit E copy of a letter, dated October 11, 1921, touching upon the subject of salaries, which was addressed by the governor of the Federal Reserve Board to the chairman of the Joint Commission of Agricultural Inquiry of the United States Congress. Since the close of the year 1918 three other distinguished men have filled the office of Secretary of the Treasury. In view of their votes and expressed opinions on questions relating to the salaries paid officers of Federal reserve banks the board has no reason to believe that they take the view that there has been " an amazing waste of public money" in the increase of salaries to officers and employees of Federal reserve banks or that by reason of such increases "the Treasury of the United States has been deprived of a vast sum of money." It will be noted from the tables above referred to (Exhibit D) that Digitized for tFhReA SsaElRa ries of the presidents of the larger banks in New York City http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 REPORT OF THE FEDERAL RESERVE BOARD. are in several cases from 50 per cent to 100 per cent in excess of the salary paid the governor of the Federal reserve bank and that in the case of three of these banks there is a vice president whose salary exceeds that of the governor of the Federal Reserve Bank of New York. It is proper to state that while the senior officers of the Federal reserve bank have never received any extra compensation or bonuses, very substantial bonuses have been paid to the higher officers by some of the national banks in various parts of the country. For example, the examination report for 1920 of Bank A of New York City shows that the chairman of the board received a bonus of $35,000, the president a bonus of $30,000, one of the vice presidents a bonus of $25,000, and other officers received smaller amounts in proportion to salaries paid, while all the senior officers of Bank F received a bonus equal to 25 per cent of their annual salaries. The salaries paid vice presidents of the larger national banks and trust companies in New York City are much in excess of those paid to the deputy governors and controllers of the Federal Reserve Bank of New York, the highest salary paid to a deputy governor of the Federal Reserve Bank of New York being $30,000, while the salaries of vice presidents of the six New York City banks listed in Exhibit D range from $30,000 to $75,000 per annum. If the average annual salaries paid are considered, it will be found that the Federal Reserve Bank of New York, with 40 officers and with a total official pay roll as of October 1, 1921, of $509,800 per annum, paid its officers an average annual salary of $12,745, while the average annual salary paid to officers of the six national banks listed in Exhibit D, some with a larger and others with a smaller number of officers than the Federal reserve bank, ranged from $11,466 to $28,792, the average annual salary paid by Bank E being considerably more than twice that paid by the Federal Reserve Bank of New York. While the average annual salary paid by Bank A appears as $11,466, or slightly less than that paid by the Federal reserve bank, it will be found, as above stated, that the chairman of the board of that bank received a bonus of $35,000, bringing his total compensation for the year up to $100,000; the president a bonus of $30,000, one vice president a bonus of $25,000, and other officers smaller amounts in proportion to their salaries. If bonus payments were included in arriving at average annual salaries, the average salary paid by Bank A would be materially in excess of that paid by the Federal Reserve Bank of New York. As will be seen from the tables included in Exhibit D, extra compensation or bonus payments made by the Federal reserve banks have in most cases been limited to officers and employees receiving $5,000 per annum or less. In a few cases bonuses have been paid to officers receiving somewhat higher salaries, but in only two instances have bonuses been paid to officers receiving more than $7,500 per annum. It is proper to state that the bonuses which have been paid to junior officers and employees have been approved by the board upon representations from the respective boards of directors of Federal reserve banks that their object in recommending the bonuses was to enable the recipients to meet abnormal costs of living without making specific increases in salary. Bonuses have been paid with the understanding that such policy was temporary only and that the payment of bonuses would eventually be discontinued. During the present Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL BESERVE BANKS. 369 year they have all been materially reduced and in some cases abolished entirely. The following table brings out clearly the difference in the average salaries, exclusive of bonuses, paid by the Federal reserve banks and by the larger member banks in the Federal reserve bank cities: Average annual salaries paid to officers by each Federal reserve bank and by three of the larger member banks in each Federal reserve bank city as of October, 1921. [Bonus excluded.] Federal reserve district. F r b e e s a d e n e r k v ra . e l M b e a m nk be . r Federal reserve district. F r b e e s a d e n e r k v ra . e l M b e a m nk b . er Boston $9,679 $14,745 St. Louis $7,078 $11,675 New York.. 12,745 U7,331 Minneapolis.. 6,478 10,621 Philadelphia 10,125 15,733 Kansas City.. 6,147 10,313 Cleveland... 7,792 10,061 Dallas 5,512 8,767 Richmond.. 6,696 6,473 San Francisco 6,459 11,409 Atlanta 5,677 7,828 Chicago 7,946 15,440 System. 7,743 13,092 1 Six national banks. It will be seen from this table that the average salary of officers in all Federal reserve banks is $7,743, while the average salary paid by the larger member banks in Federal reserve bank cities is $13,092, or 69 per cent in excess of that paid by the Federal reserve banks. With reference to the statement frequently made that salaries paid by the Federal reserve bank of New York increased 50 per cent between the years 1918 and 1920, while at the same time the number of officers and employees increased only 10 per cent, the board would state that during this period the total salaries of officers and employees increased by $1,534,443, of which amount $1,336,443 represented the increase in salaries paid to employees and only $198,000 the increase in salaries paid to officers. In explanation of the higher aggregate salaries paid to employees of the Federal Reserve Bank of New York, which increased 47 per cent during the two years as compared with an increase in number of only 10 per cent, there is given below a table showing the average annual salary paid to employees by that bank, as of the last day of December of each year from 1915 to 1920, both inclusive, and as of July 1, 1921, as well as by each other Federal reserve bank. Average salaries payable to employees of each Federal reserve bank {including branches). [Bonus excluded.] Dec. 31. Bank. July 1, 1921. 1915 1916 1917 1918 1919 1920 Boston $1,086 $985 $991 $929 $1,184 $1,271 $1,401 New York.. , . . .. 1,152 934 1,003 1,095 1 206 1 456 1 471 Philadelphia 1,000 838 796 983 1,133 1,258 1,266 Cleveland . 1,242 883 1,020 1,183 1,206 1,360 1 383 Richmond 1,044 691 794 998 1 030 1 190 1 233 Atlanta 1,005 869 1,053 998 1,054 1,149 l'281 Chicago 1,142 949 1,120 1,094 1,115 1,310 1^408 St Louis 1,068 986 953 1,028 1,051 1,214 1 326 Minneapolis 1,289 881 942 646 1,091 1,262 1,288 Kansas City.. 936 961 1,063 1,024 1,194 1,209 1,442 Dallas 1,382 1,017 919 1,110 1,168 1,270 1,447 San Francisco 1,496 925 1,144 1,227 1,268 1,366 1,521 System.. 1,128 912 1,004 1,062 1,163 1,319 l;402 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 REPORT OF THE FEDERAL RESERVE BOARD. It will be observed that the average salary paid to employees by the Federal reserve banks was very low in 1918, being practically on a level with salaries paid bank employees prior to the war, when prices were about one-half of what they were in 1919 and 1920, when the increase in the average salary paid to employees took place. An investigation made by the Federal Reserve Bank of New York in 1919 showed that the average annual salary, including bonus, paid to employees by the bank was $1,440, while the average annual salary, including bonus, paid to employees by 10 of the large New York City banks ranged from $1,620 to $2,265. In fact, it was found that in 6 of the banks the average salary paid employees yas in excess of $2,100. It was represented to the board that if the Federal Reserve Bank of New York was to retain its employees it would have to increase salaries to a level more nearly approaching salaries paid for similar work by other banks in New York City. The fact that the average salary paid employees by the Federal reserve bank at the end of 1918 was only $1,095, when the cost of living index as published by the Bureau of Labor Statistics of the Department of Labor was 77 per cent above the prewar level, gradually increasing to 119 per cent in December, 1920, would seem to justify the increase in salaries granted employees during the years 1919 and 1920. In order that the Senate may be informed as to whether the number of officers of Federal reserve banks has increased relatively more than the number of employees, and whether the number and salaries of officers and employees of the Federal reserve banks have increased more rapidly than tne volume of business and routine operations of those banks, the following table is submitted showing the changes in personnel and salaries, the growth in the principal items of assets and liabilities of the banks, and the increase in the volume of their operations by years from 1915 to 1920: Index of growth, 1915-1920, in number and salaries of officers and employees, and in business transacted, for each Federal reserve bank. [1915= l.J Officers. Offic p e l r o s y a e n es d . em- Assets a ti n es d . liabili- VoJume Transof dis- actions count through Federal reserve bank. Federal and open gold Earning reserve market settle- Number. Salaries. Number. Salaries. assets. n c o ir t c e u s l i a n - o ti p o e n r s a . - m fu e n n d t . tion. Boston 3 4 39 21 20 31 225 37 New York 5 5 40 29 95 12 989 88 Philadelphia 3 3 19 15 35 32 281 38 Cleveland 5 4 31 21 39 33 244 238 Richmond 5 5 22 16 17 10 77 60 Atlanta 4 4 11 9 18 10 66 41 Chicago. 9 5 35 25 47 203 281 45 St. Louis 5 3 22 14 42 17 224 36 Minneapolis 3 3 23 13 23 6 107 111 Kansas City 7 5 22 20 21 11 113 70 Dallas 5 4 20 13 14 5 53 63 San Francisco . 8 5 51 26 93 53 263 74 System 5 4 28 20 39 18 314 50 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

371 EXPENSES OF FEDERAL RESERVE BANKS. From this table it will be seen that while both the number and salaries of officers of the New York Federal Reserve Bank were five times as large in 1920 as they were in 1915, the number of officers and employees combined was 40 times as large and the aggregate salaries paid officers and employees 29 times as large in 1920 as they were in 1915, thus indicating that the number of officers increased relatively much less than the number of employees, and that in consequence of the decrease in the ratio of officers to employees the aggregate salaries paid to officers and employees increased much less relatively than their number. The table below shows the gradual increase in the average number of employees per officer for each Federal reserve bank. Average number of employees per officer for each Federal reservebank, includingbranches. December 31— Bank. July 1, 1921. 1915 1916 1917 1918 1919 1920 Boston 4 13 34 52 62 59 51 New York.. . 10 18 68 115 92 78 76 Philadelphia 14 21 31 46 58 83 85 Cleveland.. 7 12 25 44 41 47 39 Richmond 6 15 17 31 30 36 36 Atlanta 6 10 25 19 18 18 23 Chicago 12 21 39 40 44 47 39 St Louis 9 12 17 25 33 42 38 Minneapolis. 6 17 24 32 40 45 38 Kansas City 12 12 24 33 33 38 36 Dallas . 7 12 27 39 29 31 27 San Francisco 5 11 22 26 22 36 38 System .... 8 15 31 45 44 47 44 The earning assets of the Federal Reserve Bank of New York, composed largely of bills discounted for member banks, were 95 times as large in 1920 as in 1915; Federal reserve circulation 12 times as large; the volume of discount and open-market operations, which were very heavy in 1919 and 1920, 989 times as large; and transactions through the gold settlement fund, maintained in Washington by the Federal' Reserve Board for the purpose of settling interbank transactions, 88 times as large. For all Federal reserve banks combined, total earning assets were 39 times as large in 1920 as in 1915; Federal Reserve Birculation 18 times as large; total discount and open-market operations, 314 times as large; and transactions through the gold settlement fund, 50 times as large, while the number of officers was 5 times and their aggregate salaries 4 times as large at the close of 1920 as they were at the end of 1915; and the number of officers and employees combined, 28 times, and the salaries of all officers and employees combined, 20 times as large. The table given below shows that the average number of employees per officer in 6 New York City banks ranged from 14 to 57, while the number of employees per officer in the Federal Reserve Bank of New York, exclusive of the Buffalo branch, was 80. The proportion of the total pay roll represented by officers' salaries in the 6 member banks ranged from 20 to 38 per cent, while the proportion obtaining at the Federal Reserve Bank of New York was 10 per cent.. It will be noted also from this table that if officers' salaries &re related to total resources, the proportion for the larger New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

372 REPORT OF THE FEDERAL RESERVE BOARD. City member banks ranges from about 3 to 15 times as high as that obtaining at the Federal reserve bank. Comparison of personnel of Federal Reserve Bank of New York with personnel of six of the large New Yorlc City member banks about the end of 1920., N o u f m fic b e e rs r . of e N m u p m lo b y er e e o s f . n em A u o m v p f p f e l i b e o c r r e a e y r r g e . e o es f b P t r y s e r o e o a r t s l l a o a l c e l f r r e n f i p e i n t e c e p a t s e d . y - o rs f ' P s r a e e o r s l f t a o f o c i r u c t i e e r e a n c r s l s t e ' t s o o . f Federal reserve bank (excluding Buffalo branch). 34 2,734 80 10 0.021 Bank 1 74 4,259 57 25 .36 Bank 2 . 122 3,222 26 21 .22 Bank 3 32 946 29 38 .27 Bank 4 14 726 51 20 .068 Bank 5... . 37 1,093 29 30 .15 Bank 6 73 1,054 14 32 .29 If the ratio of total salary payments to total resources of each Federal reserve bank be compared with corresponding percentages for all national banks in each Federal reserve district it will be found that the percentages for the Federal reserve banks are materially less than those for the national banks, as will be seen from the following table: Ratio of total salary payments to total resources at Federal reserve banks and at all national banks. Federal reserve district. F b e a d n e k ra . l N b a a t n io k n s a . l Federal reserve district. F r b e e s a d e n e r k r v a . e l N b a a t n io k n s a . l Per cent. Per cent. Per cent. Per cent. Boston 0.19 0.71 St. Louis 0.37 0.90 New York... .23 .59 Minneapolis .30 1.08 Philadelphia. .24 .67 Kansas City... .36 1.08 Cleveland .21 .72 Dallas .47 1.18 Richmond... .31 .82 San Francisco. .31 1.00 Atlanta .26 1.00 Chicago .23 .77 Total. .79 NOTE.—Based on salaries paid by Federal reserve banks during 1920 as related to their condition on June 25, 1920, and on salaries paid by national banks during the year ended June 30, 1920, as related to their resources on June 30, 1920. Figures for Federal reserve banks include head office and branches. The fiscal agency work of the Federal reserve banks assumed very large proportions during the war and has continued on a large scale since. As an example of the volume of such transactions by the Federal reserve banks, it may be stated that during the four years ended December, 1920, the Federal Reserve Bank of New York alone paid 37,816,000 Government checks and warrants, handled 159,530,000 pieces of Liberty bonds, coupons, and thrift securities in its Government bond department, received over 90,000,000 payments on Liberty bonds sold, issued and redeemed $27,238,000,000 of certificates of indebtedness, and handled $49,394,000,000 of deposits and withdrawals of collateral pledged as securit}/- for Government war loan deposits with depositary banks. The statement given below, which is taken from the records of the Treasury Department, shows that for the period beginning with the first Liberty loan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 373 in 1917 and ending June 30, 1921, the 12 Federal reserve banks, in the discharge of their fiscal agency functions, handled nearly 1,000,000,000 pieces of Government securities valued at more than $286,000,000,000. Liberty bonds, Victory notes, certificates of indebtedness, Treasury notes, and war savings securities handled by the 12 Federal reserve banks, April, 1917, to June 30, 1921. Number of pieces. Amount. Stock shipped to Federal reserve banks by Treasury Department 332,492,222 $86,864,790,706 Stock returned by Federal reserve banks unissued 39,404,439 7,117,492,880 Delivered to public 285,946,770 79,594,958,704 Received from public for exchange, conversion, redemption, etc 144,202,924 57,494,860,598 Returned to Treasury Department canceled, account exchanges, conversions 133,602,847 55,041,636,342 Total 935,649,202 286,113,739,230 The board transmits herewith as Exhibit F copy of a letter addressed to it by the governor of the Federal Reserve Bank of New York, under date of October 6, 1921, in which he discusses in detail some of the operations of the bank and the reasons which actuated the directors in voting the increases in salary for officers and em- Eloyees which have been approved by the board. Much publicity as been given recently to a statement purporting to show the present salaries of certain officers of the Federal Reserve Bank of New York as compared with their initial salaries at the time of employment and with salaries obtained by them previous to their engagement by the Federal reserve bank. The board invites particular attention to the discussion of this matter in Exhibit F and desires to point out that in the case of nine of these officers whose salaries have been especially criticized their connection with the Federal Reserve Bank of New York has extended over a period of seven years, 2 of them have been with the bank six years, 6 four years, 1 three years, 4 two years, and 2 for one year. Seven of these men who entered the service of the bank seven years ago at salaries ranging from $1,500 to $6,000 per annum have been advanced from time to time on their merits and are now receiving salaries ranging from $8,000 to $22,000 per annum. In all other Federal reserve banks there have been similar instances of deserved promotion. It seems to the board that the directors of the Federal reserve banks should be commended rather than condemned for a policy which recognizes merit and promotes loyal and efficient employees. There is also transmitted, as Exhibit G, copy of a letter, dated October 26, 1921, signed by each of the nine directors of the Federal Reserve Bank of New York which presents the views of these directors as to their duties and responsibilities and reviews the salary policy of that bank. FRANCHISE TAXES PAID TO THE UNITED STATES. In reply to that part of the resolution of the Senate which calls for information as to "how much of the net earnings have been paid 85227°—22 25 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

374 REPORT OF THE FEDERAL RESERVE BOARD. to the United States as a franchise tax/' the board would state that until March 3, 1919, section 7 of the Federal reserve act provided that "after all necessary expenses of a Federal reserve bank have been paid or provided for, the stockholders shall be entitled to receive an annual dividend of six per centum on the paid-in capital stock, which dividend shall be cumulative. After the aforesaid dividend claims have been fully met, all the net earnings shall be paid to the United States as a franchise tax, except that one-half of such net earnings shall be paid into a surplus fund until it shall amount to forty per centum of the paid-in capital stock of such bank.77 Until the year 1917 the earnings of the Federal reserve banks were comparatively small and it was not until June 30, 1918, that all accrued dividends had been paid by all banks. As the net earnings of the Federal reserve banks were not sufficient during 1914, 1915, and 1916 to enable them to pay all accrued dividends no franchise taxes were paid to the United States for those years. During the year 1917, however, six of the Federal reserve banks had earnings sufficient to pay all accrued dividends and they paid a franchise tax to the Government at the end of the year amounting to $1,134,234 and carried a like amount to their surplus accounts (annual report for 1917, p. 28). At the end of the year 1918, all accrued dividends having been paid, all the Federal reserve banks were prepared to pay franchise taxes to the United States amounting in the aggregate to $26,728,440 (annual report for 1918, p. 29) but in view of legislation then pending the Treasury Department agreed to withhold demand for these franchise taxes until the adjournment of Congress on March 4. The act of March 3, 1919, amended section 7 of the Federal reserve act so that it now reads: "After the aforesaid dividend claims have been fully met, the net earnings shall be paid to the United States as a franchise tax except that the whole of such net earnings, including those for the year ending December thirtyfirst, nineteen hundred and eighteen, shall be paid into a surplus fund until it shall amount to one hundred per centum of the subscribed capital stock of such bank, and that thereafter ten per centum of such net earnings shall be paid into the surplus." In conformity with the law as thus amended, the Federal Reserve Bank of New York paid into the Treasury at the end of the year 1919 as its franchise tax the sum of $2,703,894 (annual report for 1919, p. 37). The other Federal reserve banks paid no tax as they had not then accumulated the maximum surplus allowed by law. At the end of the year 1920 nine Federal reserve banks paid to the United States as a franchise tax the sum of $60,724,742 (annual report for 1920, p. 90). The Federal reserve banks of Cleveland, St. Louis, and Dallas paid no tax as they had not yet accumulated the maximum surplus. The following table shows the amount of franchise taxes paid to the United States by each Federal reserve bank as of December 31, 1917, 1919, and 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 375 Franchise taxes paid to the United States Government. Federal reserve bank. 1917 1919 1920 Total. Boston $75,000 $2,473,499 $2,548,599 New York 649,363 $2,703,894 39,318,511 42,671,768 Philadelphia... 363,662 363,662 Richmond 116,472 204,585 321,057 Atlanta 40,000 2,136,288 2,176,288 Chicago 215,799 10,394,480 10,610,279 Minneapolis... 37,500 524,234 561,734 Kansas City.... 2,240,228 2,240,228 San Francisco.. 3,069,255 3,069,255 Total.. 1,134,234 2.703,894 60,724,742 64,562,870 During the past year the Federal reserve banks have set up a reserve for franchise tax, the total of which was on October 27, 1921, $53,938,000 (weekly statement Federal reserve banks combined, Oct. 27, 1921). This tax reserve is adjusted weekly and the total amount shown to be due the Government at the close of business December 31, 1921, will be paid to the Treasury on January 3, 1922. The board trusts that this communication contains the information desired and will cheerfully furnish at any time any additional facts which may be called for by the Senate. Respectfully submitted. W. P. G. HARDING, Governor. The PRESIDENT OF THE SENATE. EXHIBIT A. LIST OF DIRECTORS OF FEDERAL RESERVE BANKS AND BRANCHES, District No. 1, Federal Reserve Bank of Boston.—Edward S. Kennard, Rumford, Me.; Frederick S. Chamberlain, New Britain, Conn.; Thomas P. Beal, Boston, Mass.; Charles G. Washburn, Worcester, Mass.; E. R. Morse, Proctor, Vt.; Philip R. Allen, East Walpole, Mass.; Allen Hollis, Concord, N. H.; Jesse H. Metcalf, Providence, R. I.; Frederic H. Curtiss, Boston, Mass. District No. 2, Federal Reserve Bank of New York.—Charles Smith, Oneonta, N. Y.; Jas. S. Alexander, New York City; R. H. Treman, Ithaca, N. Y.; Leslie R. Palmer, Croton-on-Hudson; Chas. A. Stone, New York City; Richard H. Williams, Madison, N. J.; Geo. Foster Peabody, Lake George, N. Y.; Wm. L. Saunders, New York City; Pierre Jay, New York City. Buffalo Branch: Clifford Hubbell, Buffalo, N. Y.; Elliott C. McDougal, Buffalo, N. Y.; Harry T. Ramsdell, Buffalo, N. Y.; Frank L. Bartlett, Olean, N. Y.; E. J. Barcalo, Buffalo, N. Y.; Thos. E. Lannin, Rochester, N. Y.; R. M. Gidney, Buffalo, N. Y. District No. S, Federal Reserve Bank of Philadelphia.—Francis Douglas, Wilkes- Barre, Pa.; M. J. Murphy, Clarks Green, Pa.; Jos. Wayne, jr., Philadelphia, Pa.; Charles K. Haddon, Camden, N. J.; Alba B. Johnson, Philadelphia, Pa.; Edwin S. Stuart, Philadelphia, Pa.; Chas. C. Harrison, Philadelphia, Pa.; H. B. Thompson, Wilmington, Del.; R. L. Austin, Philadelphia, Pa. District No. 4, Federal Reserve Bank of Cleveland.—O. N. Sams, Hillsboro, Ohio; Chess Lamberton, Franklin, Pa.; Robert War(^roPj Pittsburgh, Pa.; John Stambaugh, Youngstown, Ohio; R. P. Wright, Erie, Pa.; Thomas A. Combs, Lexington, Ky.; H. P. Wolfe, Columbus, Ohio; L. B. Williams, Cleveland, Ohio; D. C. Wills, Cleveland, Ohio. Cincinnati branch: Judson Harmon, Cincinnati, Ohio; Chas. A. Hinsch, Cincinnati, Ohio; W. S. Rowe, Cincinnati, Ohio; Geo. D. Crabbe, Cincinnati, Ohio; L. W. Manning, Cincinnati, Ohio. Pittsburgh branch: Chas. W. Brown, Pittsburgh, Pa.; Jas. D. Callery, Pittsburgh, Pa.; Harrison Nesbit, Pittsburgh, Pa.; R. B. Mellon, Pittsburgh, Pa.; Geo. De Camp, Pittsburgh, Pa. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 REPORT OF THE FEDERAL RESERVE BOARD. District No. 5, Federal Reserve Bank of Richmond.—Charles E. Rieman, Baltimore, Md.; John F. Bruton, Wilson, N. 0.; L. E. Johnson, Alderson, W. Va.; Edmund Strudwick, Richmond, Va.; Edwin C. Graham, Washington, D. C; D. R. Coker, Hartsville, S. C; Frederic A. Delano, Washington, D. C; James A. Moncure, Richmond, Va.; Caldwell Hardy, Richmond, Va. Baltimore branch: Ohas. C. Homer, jr., Baltimore, Md.; Wm. Ingle, Baltimore, Md.; Waldo Newcomer, Baltimore, Md.; Henry B. Wilcox, Baltimore, Md.; M. M. Prentis, Baltimore, Md. District No. 6, Federal Reserve Bank of Atlanta.—John K. Ottley, Atlanta, Ga.; Oscar Newton, Jackson. Miss.; P. R. Kittles, Sylvania, Ga.; J. A. McCrary, Decatur, Ga.; W. H. Hartford, Nashville, Tenn.; Leon C. Simon, New Orleans, La.; Edward T. Brown, Atlanta, Ga.; W. H. Kettig, Birmingham, Ala.; Joseph A. McCord, Atlanta, Ga. New Orleans branch: P. H. Saunders, New Orleans, La.; A. P. Bush, Mobile, Ala.; R. S. Hecht, New Orleans, La.; John E. Bouden, jr., New Orleans, La.; F. W. Foote, Hattiesburg, Miss.; H. B. Lightcap, Jackson, Miss.; Leon C. Simon, New Orleans, La. Birmingham branch: W. EL Kettig, Birmingham, Ala.; Oscar Wells, Birmingham, Ala.; T. O. Smith, Birmingham, Ala.; W. W. Crawford, Birmingham, Ala.; John H. Frye, Birmingham, Ala. Jacksonville branch: John C. Cooper, Jacksonville, Fla.; Edward W. Lane, Jacksonville, Fla.; Bion H. Barnett, Jacksonville, Fla.; Giles L. Wilson, Jacksonville, Fla.; Fulton Saussy, Jacksonville, Fla. Nashville branch: W. H. Hartford, Nashville, Tenn.; Jas. E. Caldwell, Nashville, Tenn.; E. A. Lindsey, Nashville, Tenn.; T. A. Embry, Winchester, Tenn.; Paul M. Davis, Nashville, Tenn. District No. 7, Federal'Reserve Bank of Chicago.—George M. Reynolds, Chicago, 111.; Chas. H. McNider, Mason City, Iowa; E. L. Johnson, Waterloo, Iowa; A. H. Vogel, Milwaukee, Wis.; J. W. Blodgett, Grand Rapids, Mich.; A. R. Erskine, South Bend, Ind.; Wm. A. Heath, Chicago, 111.; F. C. Ball, Muncie, Ind.; James Simpson, Chicago, 111. Detroit branch: John Ballantyne, Detroit, Mich.; Emory W. Clark, Detroit, Mich.; Julius H. Haas, Detroit, Mich.; Charles H. Hodges, Detroit, Mich.; Robert B. Locke, Detroit, Mich. District No. 8, Federal Reserve Bank of St. Louis.—J. C. Utterback, Paducah, Ky.; Sam A. Ziegler, Albion, 111.; John G. Lonsdale, St. Louis, Mo.; Rolla Wells, St. Louis Mo.; W. B. Plunkett, Little Rock, Ark.; Le Roy Percy, Greenville, Mies.; C. P. J. Mooney, Memphis, Tenn.; John W. Boehne, Evansville, Ind.; Wm. McC. Martin, St. Louis, Mo. Louisville Branch: Geo. W. Norton, Louisville, Ky.; F. M. Sackett, Louisville, Ky.; W. C. Montgomery, Elizabeth town, Ky.; Embry L. Swearingen, Louisville, Ky.; W. P. Kincheloe, Louisville, Ky. Memphis branch: R. B. Snowden, Memphis, Tenn.; John D. McDowell, Memphis Tenn.; T. K. Riddick, Memphis, Tenn.; S. E. Ragland, Memphis, Tenn.; John J. Heflin, Memphis, Tenn. Little Rock branch: J. E. England, jr., Little Rock, Ark.; Moorhead Wright, Little Rock, Ark.; Geo. W. Rogers, Little Rock, Ark.; C. A. Pratt, Little Rock, Ark.; A. F. Bailey, Little Rock, Ark. District No. 9, Federal Reserve Bank of Minneapolis.—Wesley C. McDowell, Marion, N. Dak.; Theodore Wold, Minneapolis, Minn.; J. C. Bassett, Aberdeen, S. Dak.; F. P. Hixon, La Crosse, Wis.; F. R. Bigelow, St. Paul, Minn.; N. B. Holter, Helena, Mont.; Wm. H. Lightner, St. Paul, Minn.; C. Harry Benedict, Lake Linden, Mich.; John H. Rich, Minneapolis, Minn. Helena branch: R. 0. Kaufman, Helena, Mont.; Chas. J. Kelly. Butte, Mont.; H. W. Rowley, Billings, Mont.; L. M. Ford, Great Falls, Mont.; Thomas Marlow, Helena, Mont. District No. 10, Federal Reserve Bank of Kansas City.—J. C. Mitchell, Denver, Colo.; W. J. Bailey, Atchison, Kans.; E. E. Mullaney, Hill City, Kaus.; T. C. Byrne, Omaha, Nebr.; M. L. McClure, Kansas City, Mo.; Harry W. Gibson, Muskogee, Ok7a.; R. H. Malone, Denver, Colo.; F. W. Fleming, Kansas City, Mo.; Asa E. Ramsay, Kansas City, Mo. Denver branch: John Evans, Denver, Colo.; Alva B. Adams, Pueblo, Colo.; 0..C. Parks, Denver, Colo.; A. C. Foster, Denver, Colo.; C. A. Burkhardt, Denver, Colo. Omaha branch: P. L. Hall, Lincoln, Nebr.; R. 0. Marnell, Nebraska City, Nebr.; W. J. Coad, Omaha, Nebr.; Geo. E. Abbott, Cheyenne, Wyo.; L. H. Earhart, Omaha, Nebr. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

377 EXPENSES OF FEDERAL RESERVE BANKS. Oklahoma City branch: Win. Mee, Oklahoma City, Okla.; E. K. Thurmond, Oklahoma City, Okla.: Dorset Carter, Oklahoma City, Okla.; T. P. Martin, jr., Oklahoma City, Okla.; C. $. Daniel, Oklahoma City, Okla. District No. 11, Federal Reserve Bank of Dallas.—John T. Scott, Houston, Tex.; B. A. McKinney, Dallas, Tex.; Howell E. Smith, McKinney, Tex.; Frank Kell, Wichita Falls, Tex.; Marion Sansom, Fort Worth, Tex.; J. J. Culbertson, Paris, Tex.; W. B. Newsome, Dallas, Tex.; H. 0. Wooten, Abilene, Tex.; Wm. F. Ramsey, Dallas, Tex. El Paso branch: W. W. Turney, El Paso, Tex.; A. P. Coles, El Paso, Tex.; A. F. Kerr, El Paso, Tex.; U. S. Stewart, El Paso, Tex.; W. C. Weiss, El Paso, Tex. Houston branch: R. M. Farrar, Houston, Tex.; J. J. Davis, Galveston, Tex.; Frank Andrews, Houston, Tex.; Guy M. Bryan, Houston, Tex.; E*F. Gossett, Houston, Tex. District No. 12, Federal Reserve Banh of San Francisco.—-M. A. Buchan, Palo Alto, Calif.; C. K. Mclntosh, San Francisco, Calif.; John W. Baer, Pasadena, Calif.; J. A. McGregor, San Francisco, Calif.; E. H. Cox, Madera, Calif.; A. B. Dohrmann, San Francisco, Calif.; Walton N. Moore, San Francisco, Calif.; Wm. Sproule, San Francisco, Calif.; John Perrin, San Francisco, Calif. Portland branch: Edward Cookingham, Portland, Oreg.; J. C. Ainsworth, Port land, Oreg.; Nathan Strauss, Portland, Oreg.; Jos. N. Teal, Portland, Oreg.; F. Greenwood, Portland, Oreg. Seattle branch: M. F. Backus, Seattle, Wash.; M. A. Arnold, Seattle, Wash.; Chas. H. Clarke, Seattle, Wash.; Chas. E. Peabody, Seattle, Wash.; C. R. Shaw, Seattle, Wash. Spokane branch: D. W. Twohy, Spokane, Wash.; R. L. Rutter, Spokane, Wash.; Peter McGregor, Hooper, Wash.; G. I. Toevs, Spokane, Wash.; W. L. Partner, Spokane, Wash. Salt Lake branch: L. H. Farnsworth, Salt Lake City, Utah; Chapin A. Day, Ogden, Utah; G. G. Wright, Salt Lake City, Utah; Lafayette Hanchett, Salt Lake City, Utah; R. B. Motherwell, Salt Lake City, Utah. Los Angeles branch: A. J. Waters, Los Angeles, Calif.; J. F. Sartori, Los Angeles; Calif.; Henry M. Robinson, Pasadena, Calif.; I. B. Newton, Los Angeles, Calif., C. J. Shepherd, Los Angeles, Calif. EXHIBIT B. Cost of banh premises of Federal reserve banks to September SO, 1921. [Figures include cost at head office and branches.] Federal reserve banks. in O ve r s ig tm in e a n l t. r b e u m C i b o o l a d s d n i t e n k o l g i f n s. gb l u c c o i o o s l t n t d u i s r i o o n t s n f r e g u . n s o c e f - i w n to T o S 1 t e 9 a 2 p l 1 t c . . o 3 st 0 - , c t h D io a e n a r p g n a r e c e l d e l c o s i o w a f - f - . B S o e o 1 p 9 k 2 t 1 . v . 3 a 0 l , ue Boston , $1,296,380 $3,160,183 $4,456,563 $200,000 $4,256,563 New York: Banking house .. 4,797,882 758,072 5,555,954 1,841,618 3,714,336 Annex building. 681,531 1,528,925 2,210,456 147,891 2,062,565 Philadelphia 600,000 $1,099,638 1,699,638 1,166,848 532,790 Cleveland 1,806,235 406,150 1,197,872 3,410,257 384,235 3,026,022 Richmond 659,922 2,103,014 2,762,936 228,434 2,534,502 Atlanta i 568,750 505,743 1,074,493 213,248 861,245 Chicago 2,936,149 2,900,535 5,836,684 849,062 4,987,622 St. Louis 11,311,197 560 1,311,757 685,000 626,757 Minneapolis 615,000 252,886 177,738 690,148 Kansas City 730,000 ""32," 974' 2,791,827 3,564,801 100,000 3,454,801 Dallas 399,749 39,246 1,775,180 2,214,175 159,344 2,054,831 San Francisco 520,785 232,895 448,776 1,202,456 530,795 671,661 Total. 16,923,580 1,811,463 17,423,013 36,158,056 6,684,213 29,473,843 INet. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

378 REPORT OF THE FEDERAL. RESERVE BOARD. Cost of bank premises of branches of Federal reserve banks to Sept. 30, 1921. Branches. in O ve ri s g tm in e a n l t. r b e u m C b i o o l a d s d n t i e n k o l g i f n s g . C b c u c o o o i s l t n t u d i s r o i o s t n n f r e g u . n s o c e f - i w n to T o S 1 t e a 9 p l 2 t 1 c . . o 3 s 0 t , c t h D io a e n a r p g n r a e c e l d e l c s o i o a w f - f - . B S o e o 1 p k 9 t 2 . v 1 3 a . 0 lu , e Buffalo None. Cincinnati $380,744 $380,744 $113,744 $267,000 Pittsburgh 515,000 $406,150 921,150 921,150 Baltimore 451,193 451,193 70,000 381,193 Birmingham . » None. Jacksonville None. Nashville 85,000 85,000 85,000 New Orleans 1201,250 $1,710 202,960 44,887 158,073 Detroit . None. Little Rock 85,008 85,008 85,008 Louisville . . . 175,275 560 175,835 40,000 135,835 Memphis None. Helena... .... 15,000 2 161,438 176,438 77,738 98,700 Denver None. Oklahoma City 65,000 65,000 65,000 Omaha 165,000 32,975 197,975 197,975 El Paso 39 004 2107,796 146,800 146,800 Houston 65,843 143,323 209,166 209,166 Los Angeles None. Portland None. Salt Lake City- 115 080 115,080 115,080 Seattle . None. Spokane None. Total 2,358,397 439,685 414,267 3,212,349 346,369 2,865,980 1 Net. 2 Completed buildings. BOSTON. July, 1918: Purchased property at Pearl and Milk Streets, covering 14,333 square feet, for $1,000,000. Property sold in November, 1919, for $1,150,000. August, 1919: Purchased property bounded by Pearl, Franklin, and Oliver Streets, covering 40,330 square feet (on which stood old buildings razed in 1920), for $1,411,500. The net cost of property to the bank, after paying preliminary expenses connected with purchase and deducting profits on property at Pearl and Milk Streets, was $096,379.78. Total cost to September 30, 1921, of building in course of construction, $3,160,182.79; estimated additional cost to complete building, $900,000. NEW YORK. June, 1918: Purchased property for banking house site at corner of Liberty, Nassau, and Maiden Lane. February-June, 1919: Purchased adjoining properties running through from Liberty Street to Maiden Lane. Total cost of property purchased in 1918 and 1919, which covers 45,950 square feet, was $4,797,881.72. Total cost to September 30, 1921, of new building in course of construction is $758,- 071.97; estimated additional cost to complete, including vault equipment, $17,880,000. April-July, 1920: Purchased, for annex building site, properties at corner of Gold Street and Maiden Lane and at 10 Gold Street and at 89 Maiden Lane at a total cost of $681 531.17. Construction of annex building started in fall of 1920; total cost, $1,528,925. PHILADELPHIA. December, 1917: Purchased Horner Building on Chestnut Street, covering 19,205 square feet, which is now occupied as banking house, for $600,000. Cost of remodeling and building vault to September 30, $1,099,637.92. Estimated cost to complete vault in course of construction, $115,000. CLEVELAND. February, 1919: Purchased Masonic Temple property at Superior and Rockwell Streets, consisting of one five-story and two four-story buildings and covering 29,763 square feet, for $910,491, including preliminary expenses connected with purchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 379 Total cost to September 30, 1921, of new building in course of construction was $1,197,871.95. Estimated additional cost to complete building in course of construction, approximately, $5,000,000. July, 1920: Bank contracted for purchase of adjoining property, covering 13,000 square feet, for $375,000. CINCINNATI. October, 1920: Purchased property at Fourth and Bace Streets, covering 13,172 square feet, for $380,744, including preliminary expenses connected with purchase. Building operations not begun. PITTSBURGH. February, 1920: Purchased property at Ninth and Liberty Avenue, covering 4,144 square feet, for $515,000, on which is a 10-story building now occupied by the branch as a banking house. Total cost to September 30, 1920, of remodeling, $406,150.19. RICHMOND. July, 1916: Purchased property at Ninth and Franklin Streets, covering 11,444 square feet, for $128,435, including preliminary expenses connected with purchase. May, 1919: Purchased Virginia Hotel property at Eighth and Franklin Streets, covering 4,455 square feet, and separated from above property by a 20-foot alley, for $80,293.90. Total cost to September 30,1921, of building in course of construction, $2,103,014.19. Estimated cost to complete building in course of construction, $260,000. BALTIMORE. Fall of 1917: Purchased the National Mechanics Bank building, covering 4,840 square feet, for $200,000, which is now occupied as banking house. June, 1920: Purchased property, covering 12,500 square feet, at corner of Calvert and Lexington Streets, for $251,192.90. This consists of three pieces of property rented to various tenants, possession to be had at end of 1921, except from one tenant whose lease runs to October, 1924. Branch will probably sell the National Mechanics Bank building after building proposed banking house on the Calvert Street property. ATLANTA. October, 1916: Purchased the First Presbyterian Church property, covering 18,180 square feet, on Marietta Street, for $102,500. The old church building on back of lot was utilized in new bank building, which was constructed at a cost of $417,400. January, 1921: Purchased the adjoining ground, covering 18,000 square feet, for $180,000. Cost to September 30 of addition to building in course of construction, $86,632.04. Estimated additional cost to complete building in course of construction, $923,000. JACKSONVILLE. October, 1921: Federal Reserve Board authorized bank to purchase property covering 4,770 square feet at corner of Hogan and Church Streets for $45,000. NASHVILLE. July, 1921: Purchased two-story building and lot on Third Avenue, covering 5,267 square feet, for $85,000, possession to be had in January, 1922. It is intended to remodel present building for branch banking house. NEW ORLEANS. July, 1919: Purchased the Commercial National Bank building, on lot covering 8,475 square feet, for $238,750, including preliminary expenses connected with purchase. Old building on property was sold by branch for $37,500 to dismantle and remove. Preliminary expenses in connection with new building contracts, $1,710. Building operations not begun. CHICAGO. December, 1918: Purchased the Shedd property, covering 26,400 square feet, bounded by La Salle, Jackson, and Quincy Streets, for $2,936,149.26. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

380 REPORT OF THE FEDERAL RESERVE BOARD. Total cost to September 30, 1921, of new building in course of construction, $2,900,- 534.70; estimated additional cost to complete building $4,629,000. ST. LOUIS. January, 1919: Purchased property occupied by the St. Louis Union Trust Co., corner Locust and Fourth Streets, and three adjoining properties on Fourth Street, covering 20,367 square feet, for $540,461.50. January, 1920: Purchased adjoining property, covering 8,274 square feet, on Locust Street, running north from alley to Broadway, for $510,678.50; purpose being to build on this site an addition to the banking house on the above property or to sell this second property if found that a larger building is not required. Old elevator parts were sold for $225. LITTLE ROCK. January, 1921: Purchased vacant lot covering 8,000 square feet at corner of Third and Louisiana Streets, for $85,007.50. Building operations not begun. LOUISVILLE. May, 1919: Purchased National Bank of Commerce Building, Fifth and Market Streets (5,550 square feet), including vaults, furniture, and fixtures, for $150,275, which is now occupied by branch as banking house. August, 1920: Purchased adjoining vacant lot, covering 2,340 square feet, for $25,000, for purpose of building addition to above banking house. Building operations not begun. MINNEAPOLIS. November, 1919: Purchased property, covering 25,575 square feet, at corner of Marquette Avenue and Fifth Streets, for $600,000. Expenses to September 30,1921, in connection with construction of foundation for building started in July, $91,448.23. Final plans for new building not completed. HELENA. January, 1920: Purchased property of Independent Telephone Co., covering 2,475 square feet, including modern, fireproof one-story building, for $15,000. Cost of remodeling building and constructing vault, $161,437.64. KANSAS CITY. July, 1918: Purchased property, covering 16,675 square feet, at corner Tenth Street and Grand Avenue, for $500,000. Cost to September 30, 1921, of banking house in course of construction, $2,791,826.69. Estimated additional cost to complete building, $1,280,000. DENVER. September, 1921: Federal Reserve Board authorized bank to purchase property covering 25,785 square feet at corner Eighteenth and Curtiss Streets, for $100,000. OKLAHOMA CITY. August, 1921: Purchased property, covering 10,500 square feet, at corner of Third and Harvey Streets, for $65,000. Building operations not begun. May, 1920: Purchased the Farnum Building, a five-story and basement stone and brick building, covering 8,712 square feet, then leased by branch as banking quarters, for $165,000. Cost of remodeling to September 30, 1921, $32,974.50. DALLAS. August, 1915: Purchased for $112,500 five-story and basement fireproof building at Commerce and Martin Streets, covering 2,500 square feet, wl^ich had been leased by the bank since April, 1915. Cost of remodeling building, $39,246. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 381 November, 1918: Purchased property at corner of Wood and Akard Streets, covering 29,233 square feet, for $145,783.39. August: Federal Reserve Board approved purchase of Thomas property, adjoining above, on Wood Street and covering 4,500 square feet, for $36,619.40. Cost to September 30 of new building in course of construction, $1,524,060.26. Estimated additional cost to complete, $30,000. EL PASO. July, 1919: Purchased lot, covering 6,000 square feet, on Myrtle Avenue, for $39,- 003.50, on which a two-story building, costing to September 30, 1921, $107,796.03 was erected as permanent banking house and occupied by branch in August, 1920. HOUSTON. October, 1920: Purchased site covering 10,000 square feet at Fannin Street and Prairie Avenue, for $65,842.74. Cost to September 30,1921, of buildings in course of construction, $143,323.60. Estimated cost to complete building, $195,000. SAN FRANCISCO. Summer of 1917: Purchased end of block bounded by Commercial, Sansome, and Sacramento Streets, and in Spring of 1918 purchased remainder of block to Battery Street. Total property purchased covers 32,863 square feet and cost, $405,705.37. Remodeled and occupied part of property as banking house. Cost to September 30, 1921, of new building in course of construction, $448,775.85. Estimated additional cost to complete, $3,100,000. SALT LAKE CITY. January, 1921: Purchased for $115,080.36 property covering 27,225 square feet at corner of South Temple and State Streets. Building operations not begun. EXHIBIT 0. NEW BANK BUILDING, FEDERAL RESERVE BANK OF NEW YORK. The criticism of the building operation now being conducted by the Federal Reserve Bank of New York is contained in the following paragraph of an address made by John Skelton Williams in Augusta, Ga., on July 14, 1921, which appears in the record of the hearings of the Joint Commission of Agricultural Inquiry. "These high-salaried officials of the reserve bank, men not particularly conspicuous either for talent or constructive achievement, have luxurious tastes. You probably saw in the newspapers that plans were filed in New York by the reserve bank there last Thursday for a temple of banking in New York City to cost, including land, it is estimated, $16,000,000, probably more than the combined cost of the White House and Treasury Buildings at Washington and the State capitals of a dozen States of the Union. This building, with its luxurious and lavish appointments of marble and brass, its auditoriums, gymnasium, club quarters, restaurant de luxe, and objects of art, will make Solomon's Temple of old seem quite cheap by comparison." Since April 1, 1919, the Federal Reserve Board has shared the employment of our bank that a bank building was essential to the safe, economical, and efficient operation of the bank. It could not perform the important services required of it by the Government of the United States, by the member banks, and by the public generally, unless it secured adequate and safe accommodations. It appeared that the time was opportune to acquire the real estate. Real estate conditions in New York had become greatly depressed, even demoralized, as a result of the war. After examining all possible sites, and taking the advice of experts, it was decided to acquire the property, or such portion as could be acquired, bounded by Nassau, Liberty, and Williams Streets and by Maiden Lane. Purchases were gradually made until the entire block, with the exception of one small building at the eastern end of the property, which is not essential, was purchased, at a total cost, including all fees and incidental payments, of $4,797,381.72, a little over $100 a square Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

382 HEPORT OF THE FEDERAL RESERVE BOARD. foot for a total of 45,950 square feet. The value of all the buildings acquired, after careful appraisal by experts, was written off, as the buildings would have to come down to make way for the new structure. This resulted in charging down the real estate by $1,703,831.72, leaving the present book value $3,094,050. As to the care and wisdom with which this real estate was acquired, one of the owners from whom a large portion of the block was purchased told me some months ago that we had made a remarkably advantageous purchase, as he had recently sold an exactly similar but smaller piece of land across the street from ours at about double the price per square foot which we had paid for our property. As to the cost of the building, various estimates have been made. By a rigid and exacting reduction of everything in the nature of unnecessary ornament or adornment for the building (which always had been planned to serve utilitarian purposes only), more expensive types of material, or more expensive forms of construction, estimates which were made in the winter of 1920-21 have been reduced something like $4,000,000 in the most recent estimate made last March. This March estimate—the most recent—indicated a possible outside cost for the entire building, equipment, all fees and incidental costs, solely excepting vault equipment, which will be gradually installed over a period of years, of $17,990,347. Deducting equipment, which should not be charged as a part of the building cost, such as vaults, fixtures, wiring systems, furniture, equipment, etc., makes the cost of the building proper $14,855,705, as estimated last March, an average cost per cubic foot of $1.08 for a building- of about 14,000,000 cubic feet, which we are advised by architects and contractors is a moderate cost at this time for a building such as we require for the bank. It will take at least two years to complete the construction, and probably longer. It will be sufficiently large to cover from 50 per cent to 75 per cent expansion over our present requirements. The commission is first asked to consider the facts in regard to the character of the building in contrast with the fantastic language quoted above, namely, that highsalaried officials of the bank have luxurious tastes; that they have filed plans for a temple of banking to cost $16,000,000, probably more than the combined cost of the White House, the Treasury Building, and a dozen State capitols. (Observe that there is no reference to the differences in costs of to-day and those which prevailed when such buildings were erected.) This building, it is asserted, with its luxurious and lavish appointments of marble and brass, its auditorium, gymnasium, club quarters, restaurant de luxe, and objects of art, will make Solomon's Temple of old seem quite cheap by comparison. There will be no marble and brass in this building, except the very moderate amount of ordinary grades of marble required for floors, toilets, wainscots, and possibly marble with some kind of metal to be used for the bank screen on the first floor of the building only, where transactions are conducted with the public. There will be no great marble banking room; the officers' quarters will be on the tenth floor and be plain plaster or wood rooms. The bank does not require an ornate and monumental building; it requires a building especially constructed to meet the peculiar and unusual character of the business which it conducts, and especially a building which will meet the permanent needs of the bank and can be maintained in upkeep at a minimum cost. The "auditoriums" consist, in fact, of one assembly room of 4,600 square feet, which will accommodate about 1,000 people out of a force of 3,000, and it is to be built in order that the bank may continue to conduct educational work now in progress for the betterment of the service by the employees to the bank, and to enable them to gain promotion. Many of our clerks take extension courses in universities in New York, and it is intended to conduct regular lectures at the bank, where necessary, illustrated by charts and other graphic means upon a screen. A suitable room such as this is also needed in which to hold meetings of the officers of the member banks of the district, to which reference has already been made. In addition to large meetings, this room will be capable of being divided into smaller rooms by the use of movable partitions, for the various uses of the bank, when needed. As to the gymnasium, the bank maintains a medical department for the benefit of the health and morale of the force, with service alternating between three doctors and several nurses, and a small dispensary. About a thousand cases a month are treated. The confining character of the work of the bank is liable to be detrimental to the health of the employees. Some part of this may be described as occupational defectiveness. Three thousand six hundred square feet have been set aside on the top of the building, where the medical department at their recommendation can conduct certain simple corrective exercises to overcome the consequences, for instance, of all day operation of an adding machine, which sometimes results in neuritis. This is the only "gymnasium." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDEBAL EESEEVE BANKS. 383 The club quarters consist of two rooms, one for men and one for women, each with an area of 2,200 square feet. These rooms will be plainly furnished and maintained in connection with the bank's library, which will enable those who desire a brief period of rest after luncheon, or to pursue their studies, to have a satisfactory place for the purpose. These are the "extravagant club quarters." The restaurant de luxe, in fact, is a cafeteria. Experience in our present quarters has shown that the employees of the bank, possibly because they are rushed with their work, or possibly because they have not the means, get inadequate and frequently unwholesome lunches in restaurants. To overcome this a small cafeteria has been operated for some years in which the clerks serve themselves with a simple but thoroughly wholesome luncheon, with one hot course. The space occupied, 1,492 square feet, is too small now to permit of serving any but the women employees. For the first six months of this year the cost of operating this cafeteria was $53,210.54. Of this amount, the rental of the space furnished by the bank, plus the wages of servants, was $5,722.32. The balance of the cost, $48,132.22, was paid by the employees for their luncheons, which averaged in cost 32 cents. It is now only possible to serve less than one-quarter of the force, but those who are served get a well-prepared luncheon at from one-half to one-third of What it would cost in a restaurant. In the new building two cafeterias will be provided, one for men and one for women, each with an area of 8,000 square feet, including kitchen and service, that will be operated upon the self-service plan. Meals will be served exactly at cost, and in this space 550 people can be served at one time in each room. It will enable all employees to lunch in the building at moderate cost. It is the least amount of space which can be employed to cover the possible capacity of the building, which is about 5,000 people. There will be one or two small rooms where luncheon may be served to the officers of the bank, or for officers of member banks, either when attending meetings at the bank, or wnen visiting the bank from out of town to transact necessary business. This is the "restaurant de luxe." There are no objects of art to be provided for this building. The commission's attention is called to the fact that in the opinion of the officers of the bank and in the opinion of those who are at work on this problem, no large building operation in New York has been conducted upon the basis of a more scientific study of the subject than has ours. The bank has had a consulting architect, under salary, working upon the problem, since September, 1918, and an efficiency engineer since August, 1918. The architects' competition was started in July, 1919. During the year 1919 engineers to study vaults, foundations, power plant, heating, electricity, ventilation, and plumbing were all started at work. The general contractor was selected in December, 1919. These men have been, ever since, devoting themselves to a thorough study of the problem. The result will show the care with which the work has been done. In order to obtain for the information of the commission an unprejudiced expression of views as to the general character of the organization and the work which it is performing, a letter was sent on September 30, 1921, to the six principal architects, engineers, and contractors to whom this work was intrusted, making such inquiry as would bring forth a frank expression of their views without disclosing the purpose for which the report was desired. A copy of the letter asking for the reports, together with the original letters received in reply, are herewith submitted to the commission for their information, with the request, however, that they be not printed in the record because of their rather confidential nature. If these letters can be returned to the bank, copies will be substituted for the records of the commission. The bank was unwilling to let the contract for this building at a fixed sum to one contractor in a market where all building costs were declining. The possibility of profit to a contractor on such a large building, containing nearly 14,000,000 cubic feet, under present conditions would be considerable. The general contractors, Messrs. Marc Eidlitz & Son, are undertaking the work for a very moderate fixed fee, and all savings in declining costs will accrue to the benefit of the bank. The same is true of the foundations, which are a costly and difficult job, the contract for which has been let to a leading contractor in the country for a fixed fee. All subcontracts on the building will be let by competition, subject to approval by the directors of the bank. Large savings have already been effected due to the care and foresight with which these arrangements were made. In the case of the security vaults, which will be the largest ever constructed in the United States, and the most secure, it some time ago appeared possible that the development of vault construction had proceeded upon a wrong theory in view of the discovery of new processes for attacking and destroying steel. Last year arrangements were made with the Bureau of Standards, through the Federal Reserve Board, to conduct an experimental test in Washington. A great variety of sample vaults of all types Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 KEPORT OF THE FEDERAL RESERVE BOARD. of construction were built at a cost of $75,000, and they were attacked by every known means of breaking down concrete and steel, such as cutter burners, explosives, etc. This test was for the benefit of, and the cost was borne by all reserve banks, in proportion to their resources. The estimate of the cost of the vault, prior to this test, was $3,272,000. The plans now developed, as the result of the test, will produce a larger vault than we had planned, probably 5 to 10 times as secure as any previously constructed, at a cost of about $1,500,000, or a saying of over $1,700,000. As an indication of the wisdom of the decision to commence building in a declining market, I wish to submit the following list of savings over the costs estimated as of last March upon the contracts already let: Wrecking old. buildings $135, 997 Steel (exclusive of vault protection) 372,300 Steel (for vault protection, estimated) 350,000 Cartage (for excavation work) 45,000 Foundation subcontracts so far as let 9, 886 Stone work, estimated (by reason of certain rearrangement of construction). 300,000 Those reductions being actual savings over estimated costs, principally due to price reductions, relate to only a few of the contracts, but considerable further reductions in actual cost over estimated cost are anticipated. No part of the building will be erected without competition. No extravagant materials will be used for the facade or interior of the building. It is proposed to obtain competitive bids for a great variety of materials, including brick, limestone, sandstone, and other materials which can be obtained in sufficient quantity. There is no thought of employing marble or even granite for the facade, which would be too costly. My statement in regard to this building would not be complete without reference to its necessity. The motives actuating the directors of the bank (with the Federal Reserve Board's approval) in commencing building operations are principally the following: The bank now occupies offices and vaults in six separate buildings in New York City, scattered all the way from Wall Street to Forty-fourth Street, with a warehouse formerly in Brooklyn, but now on Maiden Lane, New York City. This destroys efficiency and economy in operation. The force being so scattered causes serious inconvenience to the member banks and to the public. The cost of building is declining, and the most advantageous time to build is on a declining market. The health and morale of the clerks is in danger of being impaired by overcrowding, insufficient light and ventilation. And not least is the fact that there is just now considerable unemployment, and the erection of this building will give employment to some thousands of workmen who are badly in need of work. A brief description of certain practical reasons for immediate construction will serve to make clear why it can not be deferred. The bank's offices and vaults are now located in six different buildings. Employees and officers make an average of 368 visits a month to vaults outside of the main office, which consumes the equivalent of 2,366 working days per year. Members of the auditing department, located two blocks from the main office, make an average of 57 trips daily, consuming time equivalent to 814 working days a year. The distribution of material from the main vaults in the Equitable Building to the nine floors occupied in that building consume time equivalent to 15,000 hours per year. Examples of costly inefficiency of this character could be multiplied without number. As to the inconvenience to banks and the public, this scattered location makes it difficult for those doing business with the bank to ascertain where they should go. To illustrate an instance of this inconvenience, the average number of people who call at the Government bond department, located on the twenty-fourth floor of the Equitable Building, during periods of activity is 9,963 a day. Tne maximum number who have called at the partial payment department of the Government bond section of the bank, which was until recently at Forty-fourth Street, was 17,516 in one day. The member banks are called upon to do business at the bank on six or seven different floors of the Equitable Building, as well as with departments located in other buildings and at the Subtreasury. As to the health of the force and the morale of the organization the building code of New York sets a minimum of 50 square feet in a room with a 10-foot ceiling for clerical workers. The bank has been so overcrowded that practically all departments of the bank violate this provision of the code. The average area per employee in the Equitable Building is now only 38 square feet. In certain divisions it is much less. In the transit department, employing 300 people, it averages 29.2 square feet. In the stenographic department, with 56 people, it averages 21.7 square feet. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 385 money department, with 198 people, averages 32 square feet. The country collection department, with 153 employees, averages 31.4 square feet. The Equitable Building was designed as an office building and not to be used in large areas for large organizations. Ventilation is inadequate for the purposes of the bank, and it is believed that this is a cause of illness among the employees. Of the total force, 700 employees, are crowded into 30 square feet per person. The amount of light available is insufficient and can not be increased with the building's present equipment. The bank has over 1,000 machines in use in various departments, a large number of which are adding machines, which should be operated electrically in order to protect the clerks from occupational disorders. This can not be done without added electrical equipment. Since the medical department has kept a record of employees we have diagnosed 31 cases of tuberculosis in the force. As to unemployment in New York City, this has been markedly the case in the building trade. Certain labor organizations with which our contractors are now dealing in connection with our building have shown a disposition to cooperate in adjusting wages where definite wage agreements do not exist. I have been advised that on foundation work alone, in which at the peak about 2,500 men will be engaged, substantial reductions in wages have been agreed upon. The contractors of the building have estimated that an average of 2,000 workmen per day, for a period of three years, will be employed at the building and in the mills, quarries, and shops fabricating the material required for the building. It is estimated that the amount of wages paid for labor, not only in the actual construction work at the building, but in the mills and plants where materials are fabricated, will total over $11,000,000. The work will be actively prosecuted throughout the winter, when the problem of unemployment is most serious. There is attached to this report a separate communication giving various statistical material relating to the need for the bank building. The bank is also fortunately in position to conduct this building operation with respect to present leases. During a period of great depression in renting in the lower part of New York favorable leases for space were made in the Equitable Building, taking only small quarters at first in 1916, but obtaining options on further very large areas in the building. The bank now occupies 117,907 square feet, scattered over nine floors, the annual rental of which is $305,959, an average of $2.60 per square foot. The estimated annual rental, on the basis of existing rental values, would be $739,334, an average of $6.27 per square foot. In other words, this space costs the bank $435,000 less than it would pay at present rental rates. Most of the leases extend for some years and contain clauses which give the bank the right to cancel (upon making a moderate payment, which decreases each year), in the event (1) that it moves into the Subtreasury, (2) that it is dissolved by act of Congress, and (3) that it erects its own building. It can hardly be considered that this record gives evidence of want of forethought or of laxness and extravagance in the management of the Federal Reserve Bank of New York. The data submitted in support of these general statements on the subject of our building was not especially prepared as a reply to criticism. Most of it was already in existence and simply represents the studies which have been made as the basis of the decision to start building operations and consists principally of material which has, from time to time, been submitted to the Federal Reserve Board. The detailed records of all of these matters, together with tables and charts showing the growth of the business of the bank which necessitated constructing this building, are herewith submitted to the commission. They include: 1. A blue print giving diagram of the organization for directing the building operation. 2. A statement of the method employed in the direction and control of the construction of the bank. 3. A description of the method employed in the matter of audit and control of all expenditures. 4. A table analyzing the cost of all real estate purchased. 5. A summary of the estimated cost, as of March, 1921, including all construction and equipment; of the net cost, deducting equipment; and the same reduced to cubic foot basis. 6. A detailed analysis of operating conditions in various of the departments of the bank. 7. A report of the American Institute of Banking upon the work of clerks of the v bank who take extension courses in banking. (This does not include work conducted at the bank or in other extension courses in New York educational institutions.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

386 REPORT OF THE FEDERAL RESERVE BOARD. 8. A statement of the dates of engagement of architects, engineers, and contractors. 9. A statement of space occupied by the bank. 10. A statement to indicate the growth in the volume of the business of the bank. 11. A chart showing the relation between the total number of employees, total pay roll, and volume of work covering the year 1920 and the first six months of 1921. The acquisition of all real estate purchased by the bank was under the supervision of a committee appointed by the directors, and all building operations have been conducted under the supervision of another subcommittee of the board of directors. BUILDING COMMITTEE GOVERNOR, CON5ULTTNG DEPUTY ARCHITECT 6OVER.NOH OWNERS COrtMIJ^IONED REPRESENTATIVE ARXHITECT5 FLMnvAl Ti nM FL^LFKP. J^ 1 t AUDITING — r— R A E R PR C E H S I E T N E T C A T T ^ IVE ACCOUNTING GENERAL - CONTR.ACTOH LEGAL —' 5UPT OF 1 CONSTRUCTION 1 SUB- CONTRACTOR 'DAGRAM-OF-THE -DIUZCTION Of-THE HEV-BUILPINQ-OPERATION FEDERAL-REJEliVE- BANK- OF- NEW-YORK Mt-D-OFJ-Y- These committees, together with a committee consisting of an officer or officers of the bank, with the architects, engineers, and contractors, met regularly, and minutes and careful records of their proceedings are contained in the records of the bank, as are also audited vouchers covering all expenditures made. They are at the disposal of the commission if it is desired to examine them. BENJ. STRONG, Digitized for FRASER Governor\ Federal Reserve Bank of New York. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 387 DIRECTION AND CONTROL OF THE CONSTRUCTION OF THE NEW BANK BUILDING. SEPTEMBER 14, 1921. Building committee.—All policies, plans, and proposals are subject to the approval of a building committee of the board of directors, five in number. This committee controls the letting of contracts. Commissioned architects and officers' group.—The work of the commissioned architects in designing and planning the building is done subject to the immediate direction of a small group consisting of the governor of the bank; a deputy governor, who has been specifically assigned to the work; and the consulting architect, who is also the consulting architect of the Federal Reserve Board. Conferences are had with controllers and managers relative to the space requirements and the detail arrangements in the various departments. Direction of the work, supervision, and inspection.—Under their contract with the bank the responsibility for the direction of the whole operation is, as shown on the attached chart, vested in the commissioned architects. All instructions to the general contractor are issued by or through the office of the commissioned architects. They are responsible for adequate supervision and inspection of the work; to see that the work is performed in a workmanlike manner and that labor and materials are of proper quantity and quality. General contractor.—Under its contract with the bank, the general contractor is to provide all labor and material and to do all things necessary for the proper and economical construction of the building. It is to furnish efficient business administration and adequate superintendence. All portions of the work which the general contractor's organization has not been accustomed to perform are to be executed under separate subcontracts, the award of which is determined by the building committee. Job meetings.—Weekly meetings are held at the office of the commissioned architects for the purpose of discussing and deciding the construction problems, receiving bids, and determining the recommendations to be made to the building committee as to contract awards and other matters requiring decision. Arrangements are made at the meeting for emergency or minor contracts and purchases. The meetings are attended by the following persons: The governor of the bank, or, in his absence, the designated deputy governor; the consulting architect and his assistant; two or three representatives of the general contractor's office; two or three representatives of the commissioned architects; and such consulting engineers and subcontractors as may be required for the discussion of specific questions. Decisions confirmed.—All actions taken by the job meetings are reported to the building committee, and when approved are confirmed in writing by the deputy governor or the secretary of the bank upon special serial forms addressed to the commissioned architects. Copies are issued to the auditing and accounting departments and to the consulting architect. Securing of bids and the award of contract—Control of estimates and securing of competition.—All plans and specifications are issued to the consulting architect at the time they are sent to the contractors; and in case the work called for is more elaborate in design or more costly in material than in the opinion of the consulting architect is justified, a request is made for revised figures. The general contractor endeavors to secure wide competition among subcontractors in all trades, but it is the policy to invite only bidders of such character as would be acceptable in the event that they submitted the lowest bids. In cases such as that of the general contractor and of the Foundation Co., where the contracts are on a cost-plus basis, wide competition is secured in the purchase of all supplies, building materials, and tools. Action on bids.—The general contractor submits to the commissioned archite ts a schedule of dates on which he proposes to call for bids on all subcontracts. Before inviting tenders he submits a tentative list of subcontractors for the approval of the commissioned architects. When bids have been received from the approved bidders, they are opened by the general contractor at the job meetings, are tabulated, and copies are furnished the owner and the commissioned architects. When bids for the work in charge of the engineers are received, such as foundations, steelwork, heating and ventilating, vaults, etc., the several consulting engineers are present. All bids are analyzed at the job meetings and an agreement reached covering the recommendations to be made to the building committee. Before action by that committee, the general contractor certifies in a written statement whether in his opinion the bid of the subcontractor under consideration is bona fide, fair, and reasonable. Awards are made to the low bidder, except in cases (which so far have been rare) where the conditions imposed by the bidder are of a character to make the acceptance of his bid undesirable. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

388 REPORT OF THE FEDERAL RESERVE BOARD. Extra worhy change orders, etc.—Extras are not allowed unless authorized In writing by a duly authorized representative of the bank. Change orders covering additions or deductions are issued only by the commissioned architects. When in an emergency a special order for an addition or deduction is required and prompt action is imperative, the question is presented by the commissioned architects to the owner (the designated deputy governor or the consulting architect) for approval and the action taken is submitted to the building committee at its next meeting. Payments—Control, inspection, and audit.—Requisitions for payments are prepared periodically by the general contractor and submitted with vouchers to the commissioned architects who examine them and, if they find them correct, issue certificates which are presented to the owner for payment. Certificates are made on the basis of expenditures only when approved in writing. After presentation to the owner the certificates are checked with the vouchers by the consulting architect. They are then submitted to the auditor of the bank, whose approval is required before a payment is made. (The procedure followed and the files maintained by the auditor's office is indicated by the attached memorandum.) As far as possible all checking of bills and pay rolls is completed day by day as they are received, in order to avoid delays at the regular periods when the general contractor presents certificates for payments. Supervision at the^ building.—In addition to the supervisors and inspectors of the commissioned architects, the consulting architect has representatives on the job, namely, his assistant and three timekeepers or checkers. It is the duty of the representatives of the commissioned architects and of this latter group to keep track of the delivery of materials and supplies and to check the payrolls, and in general to observe whether or not the decisions and desires of the building committee are being carried out. Material and labor records are inspected, so that there may be assurance that the bills presented for payment are correct and in proper form. History.—A complete record is maintained by the consulting architect's office showing the budget allowance for each trade, the amount of each contract let, the savings and excesses, and the costs to date. This record, which is intended as a history of the operations, also shows the dates of the start and finish of the various subcontracts and contains a tabulation of all estimates received for subcontracts, together with a notation of the action at the job meeting in each case. AUDIT OP CONSTRUCTION, NEW BANK BUILDING, OFFICE ORGANIZATION AND PROCEDURE. Organization.—The personnel of the office is as follows: Mr. Gleason, in charge; Mr. Knight, assistant; Mr. Roberts, representative "on the job." Records maintained.—1. Furnished by contractor, currently: (a) Daily check list of labor, showing employee's number, time, rate, and amount earned each day; (b) copy of bills of material; (c) blue prints requested; (d) copy of field requisition; (e) copy of purchase orders; (/) copy of receiving tickets; (g) copy of shipping tickets; (h) daily progress reports; (i) advice of pay-roll changes. 2. Compiled by this office: (a) Register of authorities and contracts; (6) index of authorities and contracts; (c) register of invoices; (d) register of requisitions for payment on contracts; (e) distribution of requisition amounts: (1) to budget account, (2) to cost and expense account, (3) to contractor account. 3. Files maintained: (a) Purchase orders: (1) awaiting invoices; (2) cleared (receiving tickets attached); (b) receiving tickets: (1) awaiting invoices; (c) contracts; (d) " instructions;" (e) "official actions;" (/) Marc Eidlitz "orders." Procedure—Authorities.—(1) The minutes of the building committee are read, notes taken, and indexed; (2) "Instructions" registered, filed numerically, and indexed; (3) "official action" registered, filed numerically, and indexed; (4) "order" (Marc Eidlitz & Son) registered, filed in order of registration, and indexed. The index card not only directs to the desired authority, but shows whether or not all the required steps have been taken. Preliminary verification.—At the job office (51 Maiden Lane) by Mr. Roberts: (1) Labor check lists as to number of men working; (2) receiving tickets as to material received on job, calculations, weights of steel, board measure of lumber, etc.; (3) shipping tickets for material sent from the "job;" (4) purchase orders; (a) that they are properly approved as to the requirements and prices by Marc Eidlitz & Son; (b) that they call for material or service specified on drawings or on bills of material, or, if made from a field requisition, that the latter is properly approved; (c) that prices are in agreement with authorized price schedule, or are equal to best bids and quotations, if there are no price schedules. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 389 Audits of pay rolls and invoices, general office.—Invoices and pay rolls pass through the hands of Marc Eidlitz & Son and the office of the consulting architect, by whom they are examined and approved in accordance with procedure previously determined upon. They are then delivered to this office, where they are verified in detail with " authorities, " purchase order, receiving ticket, and other data, etc., on file; all of which have been verified. The invoices are then marked for identification, registered (pay rolls included), and returned to Marc Eidlitz & Son for inclusion in the regular requisition certified by the architect. Purchase orders and receiving tickets cleared are transferred to a permanent record file. Labor.—A skeleton pay roll is produced from the daily check list of time furnished by Foundation Co. The total of the pay roll is known before the actual pay roll is received. The actual pay roll is verified in its extensions, footing, and signatures. Material and service.—Invoices are verified as to quantities and prices, by check to the "authorities," purchase orders, and receiving tickets, etc., on file, and previously verified as to prices, necessity, compliance with specifications, etc. Register of invoice and pay roll.—All invoices and pay rolls for which the chain of evidence is complete are marked for identification (numbered), registered, and returned to Marc Eidlitz & Son. Any invoice for which the evidence is incomplete or not satisfactory is returned without registration, to come through again after the lacking support is supplied. Certified requisitions for payment.—As the result of the above-described procedure, the certified requisition contains only invoices and pay rolls previously audited and identified. Upon receipt its items are checked to the register of invoices and approved for payment. The requisition as a whole is then registered and distribution of its items is made to the ledger accounts, after which it passes to the expense division for payment. Provision has also been made that should items appear in any requisition that had not been previously passed upon and are not satisfactorily supported, to throw them out and pass the requisition without the excepted items; that is, the amount of the requisition will be reduced and the corrected amount approved. Auditing of contractor's account.—Examinations of the books and records of the contractor will be made periodically, including such records as are maintained at yards and shops under the control of the contractor. Unused material and scrap.—Material recovered and scrap can only be disposed of after listing by the general contractor and upon his authority. The procedure set up for controlling charges for labor and material will apply in all such cases. Small tools.—Tools not designated in contract as part of the plant will be subject to store records and periodical inventory appraisals by the general contractor and the bank's representatives. Charge for plant.—The amount is specified specifically in the foundation company's contract, and the general contractor is required to certify that the plant was furnished during the rental period. If, subsequently, cases occur where the charge for use of plant is not a stated amount, procedure will be established to verify the charge made by the contractor for its use. Payments and receipts.—All requisitions for payments must be certified by the architect and the owner's representative. Each contractor is required to execute receipts on each payment made to him, and at the time of final payment will state specifically that the payment is in full of all demands and (except in special cases) guarantee the owner against any claims. Where the guaranty is not customary because of the nature of the work a specially worded receipt has been provided in accordance with the recommendation of the bank's legal department. COST AND NEED OF NEW BUILDING. Analysis of real estate purchased and cost thereof: Total amount paid to date for real estate to provide a site for the new building is $4,797,891.72. The following schedule shows the parcels purchased and cost thereof: 85227°—22 26 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

390 KEPORT OF THE FEDERAL RESERVE BOARD. Property purchased prior to Dec, 31, 1918. Appraised Cost per value of build- Da,te. S f q e u e a t. re Pu p r r c ic h e a . se sq fo u o a t r . e ings d a a n ti d o n f s oun- bo P o r k e s v e a n lu t e. written off Dec. 31,1918. June 1,1918: Mutual 23,000 $1,600,000.00 $69.57 $219,000.00 51,351,000.00 33-35 Liberty Street. 41-49 Liberty Street. 48-50 Nassau Street. 30-40 Maiden Lane. 44 Maiden Lane. 48-50 Maiden Lane. Lawyers, Title 5,600 610,000.00 108.92 458,000.00 152,000.00 37-39 Liberty Street. 44*-46 Maiden Lane. Zie°ler 2,700 575,000.00 212.97 67,000.00 508,000.00 51 Liberty Street. 42-46 Nassau Street. Ruhnstruck .. 580 180,000.00 310.34 20,800.00 159,200.00 52-54 Nassau Street. Del afield 1,300 121,500.00 94.23 9,000.00 112,500.00 42 Maiden Lane. 33,180 3,086,500.00 803,800.00 2,282,700.00 Property purchased since Dec. 31, 1918. Appraised value of build- Date. S f q e u e a t. re Pu p r r c ic h e a . se C s o q lo s u t o a t p r . e er in d g at s i o an n d s, fo e u tc n ., - bo P o r k e s v e a n lu t e. written off Dec. 31,1919. Feb. 10.1919: Fahys - 5,260 $715,000.00 $135.93 $466,000.00 $249,000.00 29-31 Liberty Street. 52-54 Maiden Lane. Mar. 1,1919: Penfield 4,530 663,000.00 146.36 309,000.00 354,000.00 25-27 Liberty Street. 56-58 Maiden Lane. Apr. 1,1919: Bishop 920 76,350.00 82.92 22,500.00 53,850.00 23 Liberty Street. June 26,1919: Ely 1,860 200,000.00 107.53 45,500.00 154,500.00 21 Liberty Street. Total 12,770 1,654,350.00 843,000.00 811,350.00 Total of incidental payments made in connection with the purchase of the above property, including $24,268.67 accrued taxes. The balance is made up entirely of title and other fees.. 57,031.72 57,031.72 Total 1,711,381.72 900,031.72 Grand total 45,950 4,797,881. 72 104.00 1,703,831.72 3,094,050.00 Estimated cost of new building, submitted Mar. 22, 1921. Foundation— 4 $1,838,000 Building (including builder's fee). 12,170,528 Vault 1 1,556,550 Equipment. 1, 319,269 Total 16,884, 347 Architect's and engineers' fees. 1,106,000 Total 17,990,347 1 Does not include vault equipment, estimated at $650,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 391 Cost, less vault and equipment, not strictly building. Total estimated cost, as above $17,990,347 Less: Vault $1, 556, 550 Equipment— Accoustic treatment $67, 619 Book-vault doors, etc 16, 500 Lighting fixtures and reflectors 94,000 Low tension 150,000 Toilet accessories 33, 500 Sprinkler system 750 Refrigerating plant 20,000 Dumb waiters and directional signal 14,900 Letters conveyor 37,000 Hospital equipment 15,000 Kitchen equipment 50,000 Furniture, etc 800,000 Fireplace and mantels 5,000 Shades 15,000 1,319,269 Total 2, 875, 819 Proportionate part of contractor's, engineers', and architect's fees 258,823 a, 134, 642 14,855,705 Cubic-foot contents of building, 13,870,000; average cost per cubic foot, $1.08. Thirty and odd departments of the bank are scattered in six separate buildings. The departments in the Equitable are on nine floors from the basement to the twenty-fifth. These conditions result in lost motion; in some departments 30 per cent of operating effort could be saved if proper working space were available; it is estimated that 5 per cent of the present operating effort of the bank as a whole could be saved, which if spelled in dollars would amount to $200,000 per annum. THE KESPONSIBILITY OF THE BANK IN CONNECTION WITH HEALTH OF EMPLOYEES. The building code of New York sets as a minimum 50 square feet per person for clerical workers. Because of the impossibility of obtaining additional space in this building, we have been forced to overcrowd practically all of our departments, thereby violating the building code. The average area per employee in this building is only 38 square feet and is even less in certain of our larger divisions, namely the following: Number Area occu- Square Name of division. of em- pied in feet per ployees. square feet. person. Transit 300 8,730 29.2 Stenographic 56 1,216 21.7 Money 198 6,332 32.0 Country collection 153 4,812 31.4 The conditions under which many of the employees must work in our main vault and in the small space adjacent to the vault are dangerous to health. The Equitable Building was designed purely as an office building, and the upper floors were never intended to be used for banking quarters. Consequently, no provisions were made for properly ventilating large areas occupied by numbers of people. It has therefore been necessary for us to install a limited system of ventilation which is not and can not be entirely satisfactory. We feel that much of the illness among our employees is directly due to poor ventilation. Many of our divisions are insufficiently illuminated but this condition can not be corrected because the fixture layout was originally designed for private offices, and the current consumption of the building has now reached the peak load. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

892 EEPORT OF THE FEDERAL RESERVE BOAR& GENERAL FACTORS. The following are general factors which have an important bearing on the erection of the new building: (1) The tenants in the buildings on the property which the bank now owns are in an unsettled state of mind regarding their leases. This condition has resulted in a number of vacancies, and on May 1 there will be a general exodus. It will be practically impossible to procure new tenants due to the fact that we are not able to grant leases for any definite periods. (2) Our member banks are greatly inconvenienced in their business transactions with us because of the widely scattered locations of our various departments. (3) The constant changing and shifting of departments and divisions involves frequent expensive alterations^ the amount expended for these changes to date being in excess ef |il06O0; Vbhg&stio 5 h — The average1 area for an employee is §0 square feei; Seven hundred employ &es are crowded into 30 square feet per person1; N§w jfbrk building code requires 50 square feet per person. Th§ Equitably Building is designed as ah office building and not for the" use1 of persons working in large areas; the light and ventilating systetni is unstated to &uch Use, Since the medical department have kept record of employees 31 cases of tuberculosis alone have been detected. Inconvenience to public,—Scattered location and necessary constant shifting of departments greatly inconveniences everybody dealing with the bank. As illustration of the necessity for providing ample facilities for handling the public the following figures are given: Average number of people who called at the Government bond department daily (twenty-fourth floor, Equitable Building) during the maximum periods, 9,963, Maximum number of people who called at the partial payment department in one day, 17,516, Cod of present space occupied,—Total space occupied in Equitable Buliding 117,907 square feet, scattered on 9 floore. Annual rental $305,959, average cost pet square foot $2,60, Estimated annual rental on basis of existing values $739,334, estimated average cost per square foot, existing rates $6,27. Options.—No option on any additional space in this building. All space occupied except 11,300 square feet (Morris Plan space 8,000 square feet) may be held under present leases until 1933 or 1934. Buildings occupied since the organization of the bank.—62 Cedar Street, 120 Broadway,1 50 Wall Street, 35 Liberty Street, 37 Liberty Street, 43 Liberty Street, 19 West Fortyfourth Street, Pioneer Warehouse, 39 Whitehall Street, Subtreasury,1 Clearing House,1 Guaranty Trust (Forty-fourth Street),1 91 Maiden Lane,110 Gold Street.1 VAULTS IN NEW BUILDING. Vault test.—Experiments conducted in Washington last year cost $75,000, borne by all the Federal reserve banks. Test demonstrating vault construction, lining, etc., obsolete. Vault test to be conducted this fall at Sandy Hook on new aggregates will cost about $25,000, to be borne by the Federal reserve banks of New York, Cleveland, Chicago, St. Louis, Minneapolis, and Richmond, pro rata on the basis of total resources. Cost of proposed vaults.-—The vaults required, if constructed in accordance with the plan of existing practice and methods, would cost $3,272,000. If constructed in accordance with our plan arrived at as a result of the vault test, the proposed vaults would cost $1,500,000, which means that the tests proved that $1,700,000 could be saved in vault construction. This saving of $1,700,000 consists of two parts, namely: $1,250,000 on account of eliminating linings, $450,000 by using foundation walls on three sides of the vault. CAFETERIA. Present facilities.-—1. Provision now only for women. 2. Space occupied 1,493 square feet. 3. Cost of operation $53,210.54 for 6 months ending June 30, 1921, of which $5,722.32 was paid by the bank, $48,138.22 was paid by employees. Total, $53,210.54. 4. Average price per meal paid by employees, $0,32; average number of persons served daily in June, 658. 1 At present being occupied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 393 Proposed facilities of new building.-—Two cafeterias would be provided, one for men and one for women, each with an area of 8,000 square feet. Service.—To be operated self-service plan. Proposed plan is to serve meals at cost. Seating capacity 550 for each. RECREATION ROOM. Proposed facilities for recreation—Reading room.—Two rooms set aside, one for men and one for women. Area of each 2,200 square feet. These rooms are to be plainly furnished. GYMNASIUM. The area set aside, 3,600 square feet for simple corrective exercises. No expensive equipment. ASSEMBLY ROOM. Area set aside, 4,600 square feet to accommodate 1,000 people. Arranged for educational purposes. New York Chapter, Incorporated, American Institute of Banking (Section American Bankers Association), 138 East Thirty-fifth Street.J NEW YORK, July U, 1921. Mr. BENJAMIN STRONG, Governor, Federal Reserve Bank, 120 Broadway, New York, N. Y. DEAR MR. STRONG: I believe you will be interested to learn of the successful records made by our student members from your bank in the educational courses in the year just ended. Mr. John J. Golden, a student in the second year, standard course, was awarded the prize for the highest average in the course for the year. Mr. D. E. Gillmore has satisfactorily completed the work of the preparatory course, and thereby has qualified for entrance into the standard course. The following were "Honor Students" in the courses mentioned: Robert S. Carnahan, elementary Spanish; John S. Creighton, credits; John J. Golden, money and banking; Elizabeth Hicks, economic history; R. L. Smith, credits, reserves and rediscounts; Russell Tweed, money and banking; Maude Voris, bank bookkeeping. In addition, member from the Federal reserve bank completed courses listed opposite their names as follows: Margaret S. Bleecker, principles of economics; Wilbur D. Browne, economic history; Henry M. Burnett, second year, standard course; Marguerite Burnett, money and banking; Robert S. Carnahan, elementary Spanish; Norman C. Cooper, first year, standard course; Robert J. Dickey, second year, standard course; John C. Dieckert, second year, standard course; Albert P. Fallon, first year, standard course; Fred J. Fox, banking organization; John J. Golden, second year, standard course; Phyllis Hall, bank bookkeeping; Clifford H. Hawkins, first year, standard course; Elizabeth Hicks, banking practice, economic history; Rebecca Holmes, principles of economics; Alfred II. Kirkpatrick, first year, standard course; Anna Reis, business English; Charles F. Rourke, second year, standard course; George A. Shannon, economic history; Marion Schultes, bank accounting; Russell Tweed, second year, standard course. Very truly, yours, WILLIAM FEICK, President, New York Chapter, American Institute of Banking. DATES OF ENGAGEMENT OP ARCHITECTS, ENGINEERS, AND CONTRACTORS. 1. Consulting architect: A. B. Trowbridge. Employed by the bank September 1, 1918. Employed by the Federal Reserve Board April 1, 1919. Salary, one-third charged to Federal Reserve Board and two-thirds to bank. 2. Industrial engineer: H. A. Hopf. Employed, part time, August 1,1918. Whole time April 1, 1919. Appointed organization counsel September 1, 1919. 3. Architects competition: Specifications for competition issued July 23, 1919. Drawings received October 9, 1919. Award made to York & Sawyer, November 5, 1919. Final contract with York & Sawyer, October 21, 1920. 4. Engineers (fees paid by architect): Vault engineer, Frederick Holmes employed March 12, 1919, 3 per cent. Foundation engineer, Daniel C. Moran, employed De- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

3.94 REPORT OF THE FEDERAL RESERVE BOARD. cember 27, 1919, $25,000 plus 1 per cent on cost. Heating and electrical engineer, Henry C. Meyer, employed December 27, 1919, 5 per cent. Equipment engineer, Abell, Smalley & Meyers, employed December 31, 1919, 6 per cent. 5. General contractor: Marc Eidlitz. Informal arrangement December 22, 1919. Formal contract executed January 25, 1921. 6. Preliminary examination for foundation work: Borings and test started by Phillips & Worthington April 4, 1919. Informal negotiations with Foundation Co. May 26, 1921. Contract with them July 1, 1921. Statement of space occupied by bank. Government Year. Bank. loan organiza- Total. tion. Square feet. Square feel. Square feet. 1914 14,855 1915 14 855 1916 17 109 1917 .. * 28,424 31.749 60 173 1918 124,153 94,450 218,603 1919 116 625 86 060 202 685 1920 139,130 54,352 193^ 482 Percentage of increase in volume of business, in the number of employees, and in expenses. Volume of business. Period. Increase. Per cent. 1. Check collections 1915-1920 6,851 2. Noncash collections 1915-1920 14,546 3. Telegraphic transfers 1916-1920 4,858 4. Gold settlement fund transfers (including telegraphic) „ 1915-1920 8,676 5. Federal reserve notes paid out by bank 1915-1920 1,760 6. Federal reserve notes redeemed 1916-1920 407 7. Pieces of money counted (money division) 1916-1920 3,868 8. Money shipments 1916-1920 2,462 9. Discounts and advances 1915-1920 7,881 10. Open market purchases: (a) For New York 1915-1920 5,560 (b) For other Federal reserve banks 1915-1920 2,122 Increase volume of business in those departments of the bank in which it is possible to establish a unit of measurement for work done 6,475 Increase in number of employees in bank exclusive of fiscal agency departments.. 3,058 Increase in expenses of bank 1,601 Number of employees in bank. Employees. Officers. Bank total. Fiscal. Grand total. Jan 1,1916 71 7 78 78 Jan 1 1917 164 9 173 173 Jan 1 1918 547 16 563 267 830 Jan. 1,1919 1,414 27 1,441 1,216 2,657 Jan 1 1920 . . .. 2,222 32 2,254 636 2,890 Jan.l, 1921 '.... 2,426 37 2,463 433 2,896 Per cent. Increase in number of bank employees 3,058 Increase in number of fiscal agency employees 62 NofE BY FEDERAL RESERVE BOARD.—Figures given in the above table are based on the bank's records as of January 1 of each year and include the changes in the number of officers and employees effective as of the first of the year, whereas figures given in the Federal Reserve Board's statement represent the number of officers and employees as of Dec. 31 of each year before the above changes took place. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

395 EXPENSES OF FEDERAL RESERVE BANKS. Growth of business in bank, COLLECTION SYSTEM. Check collection. Noncash col- Amount of Year. lections, num- coupon collec- Number of Amount. ber of items. tion items. 1915 1,262,211 $1,334,015,772 4,417 1916 6,841,364 5,160,192,000 23,617 1917 19,408,179 20,104,527,000 54,153 1918 46,458,000 47,518,425,000 229,548 1919 74,463,917 56,540,748,116 309,362 $39,748,000 1920 87,727,000 55,729,013,000 646,942 60,115,335 Increase for period (per cent) 6,851 4,077 1 14,546 51 TRANSFER OF FUNDS. Telegraphic transfers. Amount of gold settlement, Year. including Number. Amount. te tr l a e n g s r f a e p r h s i . c 1915 1 $556,432,000 1916 2,971 $484,500,000 2,335,225,000 1917 . . . 10,302 6 768 400,000 17,118,917,000 1918 39,099 19,384,371,849 32,935,576.000 1919 82,321 18,245,250,181 41,932,723^000 1920 147,302 17,021,509,374 48,840,900,000 Increase for period (per cent) 4,858 3,413 8,676 11915 figures include period from May 20 to Dec. 31 only. CURRENCY. Federal reserve notes. Amount, issued Number of Year. to bank by pieces of money agent. Amount paid Amount re- counted. out by bank. deemed. 1915 . -. $89,440,000 $96,133,200 1916 71,273,000 117,985,800 $54,509,235 14,070,188 1917 415,000,000 479,934,550 65,665,200 53,051,334 1918 589,400,000 930,168,000 26,722,730 206,902,600 1919 753,120,000 1,134,822,000 632,419,880 477,476,000 1920 . 373,080,000 1,788,222,000 276,441,725 558,397,400 Increase for period (per cent) 317 1,760 407 3,868 COIN. Year. Disbursements. Received. Counted and wrapped. 1920 (March to Dec. 31) $2,450,113 1921 (6 months) $24,753,632 $46,346,232 45,681,497 SHIPMENTS (CURRENCY AND COIN). Year: Number. 1916 2,631 1917 9,669 1918 34,937 1919 63,194 1920 67,405 Increase during period (per cent) 2,462 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

396 REPORT OF THE FEDERAL RESERVE BOARD, Growth oj business in bank—Continued. REDISCOUNTS, INVESTMENTS, ETC. Discounts and advances. Open-market acceptances purchased. Tear. For New York bank. Fo re r s o er th v e e r b F a e n d k e s r . al Number of items. Amount. Number Number of items. Amount. of items. Amount. 1915 2,261 $4,820,000 1,236 $25,838,632 1,632 $22,312,094 1916 2,505 22,329,582 6,296 123,406,550 8,667 126,487,939 1917 22,484 6,511,274,921 23,876 464,965,601 10,895 152,919,831 1918. 129,038 24,535,538,458 37,161 945,497,424 8,142 174,864,545 1919 127,721 42,449,491,133 43,572 1,211,000,000 28,584 740,000,000 1920.. . 180,462 50,539,428,847 69,961 1,697,000,000 36,276 731,000,000 Increase during period (per cent) 7,881 1,048,400 5,560 6,467 2,122 3,176 PRINCIPAL RESOURCE AND LIABILITY ITEMS AND DISTRIBUTION OF NET INCOME. Totel circulation Federal Year. Total Total earning Total Total reserve notes reserves. assets. resources. deposits. and Federal reserve bank notes. 1915 $270,121,914 $10,981,069 $211,328,388 $200,093,110 $73,300,000 1916 ... 302,410,497 51,748,204 393,862,040 274,679,705 93,426,000 1917 649,944,656 424,251,433 1,208,924,654 731,458,687 397,354,000 1918... 672,528,785 905,216,289 1,871,806,077 975,219,452 762,858,000 1919 " 595,355,279 1,062,734,198 1,915,864,187 976,066,177 862,288,970 1920 . . 618,170,690 1,046,362,877 1,814,170,174 819,181,412 906,313,830 Increase during period (per cent) 129 9,430 758 309 1,136 Year. Total income. Total expense. f G ra o n v c e h r is n e m t e a n x t . Ad su d r i p ti l o u n s . to 1915 $331,108 $411,510 1916 971,026 556,962 1917 4,929,214 1,655,507 $649,364 $649,364 1918 25,314,736 2,680,703 20,467,891 1919 35,332,412 5,734,345 2,703,894 23,964,678 1920 60,525,321 6,999,255 39,318,511 12,332,523 Increase during period (per cent) 18,179 1,601 SECURITIES-PURCHASES AND SALES FOR ACCOUNT OF GOVERNMENT AND MEMBER BANKS. Year: 1917 $320,000,000 1918 3,133,000,000 1919 2,605,500,000 1920 3,835,-500,000 Increase during period (per cent) 1,098 TREASURER'S GENERAL ACCOUNT. GOVERNMENT CHECKS AND WARRANTS PAID. Year. Number. Amount. 1916 1,356,265 $220,476,739 1917 3,029,189 1,099,458,000 1918 11,107,981 4,936,592,000 1919 12,967,138 6,805,805,746 1920 10,712,243 2,437,759,148 Increase during period (per cent) 1,005 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 397 Growth of business in hank—Continued. TOTAL ANNUAL TURNOVER IN TREASURER'S GENERAL ACCOUNT. Year: 1916 $518,313,000 1917 • 23,790,869,000 1918 52,570,509,000 1919 38,398,501,000 1920 23,808,383,000 Total for period 139,086,575,000 Increase (per cent) 4,493 FISCAL AGENCY OPERATIONS. GOVERNMENT BOND DEPARTMENT. Number of Year. Amount. pieces handled. 1917 . . .. . . 5,599,917 $4,374,285,000 1918 54,226,055 9,522,954,000 1919 51,906,278 7,873,914,000 1920 47,797,417 6,955,101,000 1921 (6 months) 21,470,001 4,168,044,000 Total. 180,999,668 32,894,298,000 CERTIFICATES OF INDEBTEDNESS DEPARTMENT—TOTAL TRANSACTIONS, INCLUDING ISSUES AND REDEMPTIONS. Year: 1917 $4,371,387,000 1918 7,993,048,000 1919 9,975,306,000 1920 4,897,941,000 1921 (6 months) 1,922,592,000 Total 29,160,274,000 WAR LOAN DEPOSIT DEPARTMENT—DEPOSITS, WITHDRAWALS, COLLATERAL PLEDGED—RELEASED. Year: 1917 $7,431,515,000 1918 17,486,634,000 1919 18,143,540,000 1920 6,332,248,000 1921 (6 months) 2,981,147,000 Total 52,375,084,000 PARTIAL PAYMENT DEPARTMENT. Par value bonds sold $144,798,050 Number of accounts 2,432,441 Number of separate payments (over) 90,000,000 Number of Year. p r a e y c m eiv e e n d ts de B li o v n e d r s ed re B d o ee n m ds ed (approximate). (pieces). (pieces). 1918 41,000,000 398,036 13,085 1919 . . .. 42,544,500 1,396,068 47,695 1920 6,473,000 293,000 6,730 1921 (6 months). 32,500 1,508 1,181 Total. 90,050,000 2,088,612 6S,691 Certificates of indebtedness transactions. Certificates of indebtedness and treasury notes issued: 1917 $2, 422, 075, 500 1918 4,091,260,000 1919 4,506,155,500 1920 1,716,680,500 1921 (6 months) 865, 824, 200 $13, 601, 995, 700 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

398 REPORT OF THE FEDERAL RESERVE BOARD. Certificates of indebtedness redeemed : 1917 $1,949,311,768 1918 3,423,903,000 1919 4,337,017,000 1920 2,115,600,000 1921 (6 months) 655, 042, 000 $12, 480, 873, 768 Purchases of Liberty bonds and Victory notes from War Finance Corporation, account Treasury Department: 1918 477,885,000 1919 1,132,001,000 1920 279,236,000 1, 889,122, 000 Receipt of Liberty loan bonds and notes in payment of estate and inheritance taxes: 1919 133,000 1920 2, 955, 950 1921 (6 months) 4, 954, 850 8, 043, 800 Miscellaneous purchases of Liberty loan bonds, Victory notes, and certificates of indebtedness, account Treasury Department: 1920. 183, 469, 050 1921 (6 months) 396, 772, 050 • ~ 580, 241,100 Miscellaneous safe-keepings on account of Treasury Department: 1920 600, 000, 000 29,160, 276, 368 Government bond department transactions. 1. PAYMENTS RECEIVED. • 1917 1918 1919 First Liberty loan $618,654,795.20 Second Liberty loan ... 1,109,510,870.00 $55,683,720.88 Third Liberty loan 1,117 291 815. Fourth Liberty loan 1,854,710,725 00 $193,845,591.02 Victory Liberty loan 1,321,140,846.95 Total 1,728,165,665. 20 3,027,686,261 34 1,514,986,437.97 Grand total, $6,270,838,364.51. 2. BONDS DELIVERED ON ALLOTMENT. 3J per c ti e f n ic t a i t n e t s e . rim cer- Second Liberty loan. Third Liberty loan. Year. Pieces. Amount. Pieces. Amount. Pieces. Amount. 1917 1,621,516 $617,831,650 2,836,932 $1,027,226,750 1918 423,910 137,140,200 4,220,777 $1,115,243,650 Total 1,621,516 617,831,650 3,260,842 1,164,366,950 4,220,777 1,115,243,650 Fourth Liberty loan. Victory Liberty loan. Year. Pieces. Amount. Pieces. Amount. 1918 3,995,492 $1,499,172,950 1919 1,825,816 545,728,800 3,259,364 $1,316,198,250 1920 i 6,055 1,842,900 Total 5,821,308 2,044,901,750 3,265,419 1,318,041,150 Grand total, pieces, 18,189,862; amount, $6,260,385,150. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 399 Government bond department transactions—Continued. 3. TEMPORARY—PERMANENT EXCHANGE. Year. Pieces. Amount. 1917 1,141,469 $1,001,060,900 1918 151,363 76,978,700 1919 12,199 1,548,700 1920 7,424 426 3,363 193 900 1921 (6 months) 5,792,930 2,828,818,700 Total 14,522,387 1 7,271,600,900 4. CONVERSIONS. Year. Pieces. Amount. 1918 . ... 5,775,517 $2,474,839,700 W19 796,426 727,628,400 1920 1,915,003 726,059,000 1921 (6 months) 187,005 154,669,600 Total 8,673,951 4,083,196,700 5. EXCHANGE OF DENOMINATIONS. Year. Pieces. Amount. 1918 5,382,529 $1,077,444,900 1919 13,682,900 2,887,689,100 1920 - -- 4,772,787 1 574 803,200 1921 (6 months) 1,368,421 553,112,200 Total 25,206,637 6,093,049,400 6. UNITED STATES COUPONS PAID. Year. Pieces. Amount. 1918 14,070,383 $93,736,327.80 1919 27,834,731 187,516,023.37 1920 31,301,783 305,033,953.18 1921 (6 months) 13,134,971 145,418,052.11 Total 86,941,868 731,704,356.46 7. REGISTERED EXCHANGE, COUPON EXCHANGE AND TRANSFER. Year. Pieces. Amount. 191*3 617,625 $681,554,600 1920 803,332 980,272, 1921 (6 months) 330,746 479,638,300 Total 1,751,703 2,141,465,750 8. THRIFT SECURITIES DELIVERED. Year. Pieces. Amount. 1918 19,606,084 $20,711,254.75 1919 2,295,408 4,625,634.50 938,690 1,542,682.75 1921(6 months) 129,248 270,421.25 Total 22,969,430 27,149,993. 25 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

400 REPORT OF THE FEDERAL RESERVE BOARD. Government bond department transactions—Continued. 9. THRIFT SECURITIES REDEEMED. Year. Pieces. Amount. 1919 287,746 $1,262,066.22 1920. 164,332 468,347.00 1921 (6 months) 419,144 5,686,299.31 Total 871,222 7,416,712.53 10. THRIFT CARDS RECEIVED AND DESTROYED. Year. Pieces. Amount. 1919 1,294,063 $5,176,252.00 1920 471,009 1,884,036.00 1921 (6months) 107,538 430; 144.00 Total 1,872,608 7,490,432.00 Grand total for department, pieces, 180,999,668; amount, $32,894,298,000. Purchases and sales of Liberty bonds, Victory notes, and other miscellaneous securities for the year 1920 and six months ending June SO, 1921, for the account of other than the Treasury Department. Firm A. Firm B. Firm C. 1920 1921 1920 1921 1920 1921 January 563,110 991,550 1,077,250 2,151,000 1,142,600 February 537,100 927,000 1,481,900 1,374,500 918,635 March 627,760 1,248,450 834,950 18,000 1,551,550 April 822,220 2,056,900 2,227,950 2,110,604 May 399 740 1 011 600 1,271,250 80,000 1,017,000 June 479,190 995,050 3,155,760 2,723,700 July 186,380 418,350' August 88,170 978,200 September 120,370 481,300 October 66,240 925,200 November 51 310 791,150 December 292,260 2,668,160 Total 4,233,850 7,230,550 10,049,050 9,885,860 9,464,089 Firm D. Firm E. All others. Total. 1920 1921 1920 1921 1920 1921 January 187,500 1,234,000 530,000 7,877,010 February 167 500 1,953,630 554 000 7,914,285 March . . .. 1,298,150 7,000 5,585,860 April 1,201,800 15,000 8,434,474 May 972,650 798,700 5,550,940 June . .. , 1,053,250 382,000 8,788,950 July 1,517 000 200,000 2,321,730 August 1,067,550 5,000 2,138,920 September. .. 1,465,800 2,067,470 October 2,447,000 3,438,440 N ov ember 2,249,400 3,091,860 December 5,580,490 8,540,910 Total 355,000 22,040,740 2,491,700 65,750,849 Purchases and sales, 1920 $39,007,150 Purchases and sales, 6 months 1921 26,743,699 Total 65,750,849 These figures do not include purchases or sales of certificates of indebtedness or Treasury notes. NOTE.—In addition to the above, the bank purchased upon orders of the United States Government during Digitized for1 F92R0 ALiSbEerRty bonds and Victory notes aggregating $23,760,000 and for the first six months of 1921 $349,392,000. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BA^KS. 401 MEW fiflPtdYEES §,000 ^ JUM JU. *M itp act r»n «n «•* ' N JVL *ur MM* o«r i $8,000,000 Sc OPwe ,825 4,000 $ -a 3 sS 8 B 7 *••• 0 IT •«^ 1 «^ 1 > SS! £4,000,000 -125 Vo i o: f(ric J 1 e o r n1 0 iff ,iIn t nt 3,000 (^ il) Aenge192)) ?eo& $3,000,000 ..- »._... -.. Tot&l En?loree )8 2* '90 2,500 $2,500,000 $1,500 -$17*J5 G • Avet •-• $1,400 •i" 125 100 75 r/ -E, B 1n 74 1onthly A?ert EojLoyees Oit 6 50 —1 trty ert loy ll 57 Mo!th]y 'ver -~El»pl(yet8 Cut 45 25 $1,600 $1,500 $1,400 $1,500 Av $1,200 —it $1,100 Avra altry-Euplo Ti A'erf^e yetB Ii Ml78 4X,000 EXHIBIT D, PART 1. FEDERAL RESERVE BANK OP BOSTON. Comparison of salaries paid to officers of the Federal reserve bank as of Oct. 1, 1921, with salaries paid to officers of three of the large national banks in Boston as of Sept. 6,1921. Annual salary. Governor $25, 000 Chairman and Federal reserve agent 18, 000 Deputy governor 16, 000 Do 12,000 Cashier 10, 000 Assistant Federal reserve agent 6, 500 Secretary 6, 000 Auditor 6, 000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

402 REPORT OF THE FEDERAL RESERVE BOARD. Annual salary. Assistant cashier $6, 000 Do 6, 000 Do 6, 000 Do 6, 000 Do 6, 000 Do 6, 000 Total 135, 500 National banks in Boston. Annual salary. Position. Bank A. BankB. Bank C. Chairman $25,000 President . . ... 50,000 $75,000 $40,000 Vice president 25,000 42,000 17,500 Do 25,000 32,000 9,500 Do . .. 25,000 30,000 Do 20,000 27,500 Do ... 15,000 25,000 Do 15,000 20,000 Do 13,000 18,000 Do 18,000 Do 12,500 Do 12,000 Do 12,000 Do. 9 000 Do 9 000 Other officers 85,000 69,200 34,750 Total 298,000 411,200 101,750 SUMMARY. Annual salaries. Number of officers. Total. Average. Federal reserve bank 14 $135,500 $9,679 Bank A 21 298,000 14,190 Bank B . . .. 25 411,200 16,448 Bank C 9 101,750 11,306 Index of growth in number of officers and employees, in their aggregate salaries, and in business of the oank. [1915=1.] Assets and Volume of Personnel. liabilities. business. Year. Officers. O em ffi p ce lo rs y e a e n s d . E a a s r s n e i t n s. g c n F r u o e e l s t a d e e t e r i c v r o i a e n r l - . a D n m o i d s p a c e o r o k r p a u e e - n t n t -G tl f o e u l m d nd e s n . et t - Number. Salaries. Number. Salaries. tions. 1915 . .. 1 1 1 1 1 1 1 1 1916 1 1 4 2 2 1 4 2 1917 .. . 2 1 12 6 7 8 17 9 1918 3 2 29 12 15 17 80 18 1919 3 3 38 19 21 26 200 27 1920 3 4 39 21 20 31 225 37 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 403 Number of officers and employees. Dec. 31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent 1 1 1 1 1 1 1 Governor 1 1 1 1 1 1 1 Deputv governor 1 2 2 2 Other officers 2 3 5 8 8 9 10 Total officers 4 5 7 11 12 13 14 Employees: Banking department 4 13 55 160 223 241 237 Bookkeeping department... 3 12 17 29 32 40 45 Transit department 3 25 30 126 187 214 214 Federal reserve agent's department. 2 3 4 15 14 22 29 Auditing department 18 19 Fiscal agency department 112 211 262 179 130 General 4 13 23 33 25 49 46 Total employees 16 66 241 574 743 763 720 Total officers and employees 20 71 248 585 755 776 734 Average number of empioyees'per officer 4 13 34 52 62 59 51 Salaries of officers and employees. Dec. 31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent $10,000 $10,000 $12,000 $12,000 $15,000 $18,000 $18,000 Governor. 15,000 20,000 20,000 20,000 25,000 25,000 25,000 Deputy governors 11,000 1 24,000 127,000 1 28,000 Other officers 8,500 10,900 17,500 32,975 38,500 50,500 64,500 Total (bonus excluded)... 33,500 40,900 | 49,500 75,975 102,500 120,500 135,500 Employees: Banking department 6,100 15,260 57,700 134,283 265,200 299,600 3-0,980 Bookkeeping department... 3,100 11,360 16,530 27,343 33,240 50,000 63,300 Transit department 2,100 24,460 24,964 75,635 188,240 248,240 277,040 Federal reserve agent's de- Au p d a i r t t i m ng e n d t e part . m ' ent , 2,500 3,680 7,100 17,400 21,780 4 3 6 4 , , 1 2 8 0 0 0 5 2 7 9 , , 0 8 0 2 0 0 Fiscal agency department.. 106,200 252,873 347,980 227,100 184,880 General... "3*580' *i6,'28O' 26,378 25,572 23,460 64,500 65,660 Total (bonus excluded)... 17,380 | 65,040 | 238,872 | 533,106 879,900 969,820 1,008,680 Total officers and employees 50,880 105,940 >8,372 609,081 982,400 1,090,320 1,144,180 Average salary payable to— All officers 8,375 8,180 7,071 6,907 8,542 9,678 Officers other than chairman and Federal reserve agent, governor, and deputy governors. 4,250 3,633 3,500 4,122 4,812 5,611 6,450 Employees 1,086 991 929 1,184 1,271 1,401 1 Two deputy governors. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

404 REPORT OF THE FEDERAL RESERVE BOARD. Extra compensation paid by the Federal Reserve Bank of Boston for the years 1916-1921. (Salaries shown are annual salaries. Per cent of extra compensation based on actual salary received during period.] Jan. 1 to Dec. 31, 1916: July 1 to Dec. 31, 1919: Per cent. To persons in the employ of "Less than $1,000... 40 the bank prior to July 1, $1,000 to $1,999.... 30 1916, receiving an annual $2,000 to $4,999 20 salary of— Jan. 1 to June 30, 1920: Less than $1,000 $50. 00 Less than $1,000... 20 $1,000 to $2,500 100. 00 $1,000 to $1,999 15 To persons in the employ of $2,000 to $4.999.... 10 the bank after July 1, 1916, July 1 to Dec. 31, 1920: receiving an annual salary Less than $1,000 40 of— $1,000 to $1,999 30 Less than $1,000 25. 00 $2,000 to $4,999 20 $1,000 to $2,500 50. 00 Jan. 1 to June 30, 1921: Jan 1 to Dec. 31, 1917: Percent. Less than $1,000 10 Up to $5,000 : 10 $1,000 to $1.999 Jan. 1 to Dec. 31, 1918: $2,000 to $4,999 Up to $5,000 10 Jan.. 1 to June 30, 1919: Less than $1,000... 20 $1,000 to $1,999.... 15 $2,000 to $4,999.... 10 * Maximum bonus paid, $300. Principal asset and liability items at end of year. Total cash Bills Bills Total earnreserves. discounted. bought. ing assets. 1915 $28,760,000 $235,000 $6,493,000 $10,755,000 1916 , 40,458,000 3,746,000 12,725,000 19,693,000 1917 85,814,000 65,882,000 9,037,000 77,724,000 1918 110,851,000 133,575,000 15,084,000 156,613,000 1919 155,786,000 188,039,000 18,649,000 229,032,000 1920 217,516,000 173,368,000 20,678,000 216,109,000 Index of growth, 1915-1920 (1915= 1) 8 738 3 20 Federal re- Capital and Gross serve notes in surplus. deposits. circulation. 1915 $5,158,000 $28,352,000 $9,311,000 1916 4,990,000 68,810,000 12,890,000 1917 5,933,000 102,933,000 73,199,000 1918 8,228,000 160,153,000 160,726,000 1919 15,467,010 191,454,000 244,093,000 1920 . 23,429,000 161,828,000 288,780,000 Index of growth, 1915-1920 (1915=1) 5 6 31 Volume of business transacted during the year. B co il u ls n t d e i d s . - Bills bought. Un s b e it c o e u u d r g i S t h i t e t a . s tes To o a t p n a m e l d r a d a r o t i k p i s o e c e n t o n s u - . nt 1915 $2,087,000 $14,105,000 $1,000,000 $25,452,000 1916 33,922,000 52,378,000 2,332,000 96,254,000 1917 350,919,000 86,482,000 U,4l8,000 438,946,000 1918 1,760, 285,000 194,158,000 85,149,000 2,039,592,000 1919 4,675,398,000 360,784,000 60,702,000 5,096,884,000 1920 4,876,556,000 304,445,000 553,163,000 5,734,164,000 Index of growth 1915-1920 (1915=1) 2,337 22 553 225 Digitized for F 1 ERxAcSluEsiRve of certificates of indebtedness. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 405 Volume of business transacted during the year—Continued. . , r e b s F e y i r s e v s d a u e g e e r e n d a n o l t t . es re r b s e F e y d r e v e a d e e g e m e r n a n e o l t d t . es rec a C m e n b u i d e v a r m r e n o e d k b n t h s e c f . e r r y r om t a o C p n b u a m d a i r d r n e o e m k o t n h s u b c . e y t e r r 1915 2 $10,520,000 2 $500,000 1916 10,425,000 6,926,000 1917 75,720,000 11,942,000 1918 130,080,000 38,390,000 1919 225, 500,000 139, 768,000 $505,853,000 $402,341,000 1920 225,680,000 178,844,000 698,979, 000 688,624,000 Index of growth 1915-1920 (1915=1) 21 358 Transactions Number of Amount of through gold checks cleared. checks cleared. settlement fund. 1915 s $440,259,000 1916 1,022,016,000 1917 13,482,000 $6,951,311,000 4,118,966,000 1918 .. . . . 18,783,000 12, 778, 762,000 7,941,426,000 1919 36,234,000 13,054, 799,000 12,102,189,000 1920 . 43,821,000 14, 727, 346,000 16,203,081,000 Index of growth 1915-1920(1915-1). . . .. 37 2 Nov. 16, 1914, to Dec. 31,1915. 3 Represents daily average for the period May 20,1915 (date of first settlement) to Dec. 31, 1915, multiplied by 365. Expenses of the Federal Reserve Bank of Boston. Nov. 16 to Dec. 1915 1916 1917 1918 1919 1920 31,1914. Expenses of operation: Salaries- Bank officers $3, 217 $32, 050 $33,916 $43,550 $75,975 $105,097 $116,600 Clerical staff 3,136 18,641 43,169 100, 893 264,942 606,345 781,904 Special officers and watchmen 322 604 9,115 12,278 20,988 All other 12, 111 7,207 Federal advisory council, governors' and Federal reserve agents' conferences. 59 1,177 1,648 992 744 853 1,123 Directors meetings, legal fees, officers' and clerks' traveling expenses, life insurance and fidelity bond premiums 2,987 12,680 11,631 12,643 24,144 38,980 45,785 Assessments for Federal Reserve Board expenses.. 1 26, 876 17,704 21,226 32,190 45,619 52, 584 Taxes and fire insurance 495 25,035 3, 554 1,180 Telephone and telegraph 81 1,142 1,678 5,131 10, 729 19, 813 22,606 Henf, light, heat and power. 583 14, 371 16,629 25, 523 38,444 75,138 78,287 Printing and stationery 2,499 2,788 8,480 13, 354 39, 348 41,478 63,667 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 214,147 9,652 22,430 65,252 170,446 259,698 253,788 Total expenses of operation 26, 709 119,699 157,285 289,663 691,112 1,220,964 1,445,719 Federal reserve currency (original cost, including shipping charges) 11, 902 15,141 102,621 167,828 285,917 345,151 Miscellaneous charges, account note issues 675 7,558 31, 774 112,162 Taxes on Federal reserve bank note circulation 89,422 82,000 Furniture and equipment ' - 1,752 21, 852 14,974 41,622 43,748 24, 585 Bank premises 61,895 28,673 TotaJ ex penses 26, 709 133,353 194,953 407, 258 970,015 1,671,825 2,038,290 1 Total assessment for Federal Reserve Board expenses to Dec. 31,1915, *Includes $12,999 expenses prior to Nov. 16,1914. 85227 °—2Z 27 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT D, PART 2. FEDERAL RESERVE BANK OF NEW YORK. Comparison of salaries paid to officers of the Federal reserve bank as of Oct. 1, 1921, with salaries paid to officers of six of the large national banks in New York City as of Sept. 6, 1921. Annual salary. Governor $50,000 Chairman and Federal reserve agent 30,000 Deputy governor 30,000 Do 30,000 Do. 25,000 Do 22, 000 Acting general auditor 20,000 Organization counsel 18, 000 Controller at large 18,000 Do 15, 000 Assistant Federal'reserve agent 15,000 General counsel 15,000 Controller of administration 12, 500 Controller of accounts 12, 500 Controller of cash and custodies 12,000 Manager credit department 12,000 Controller of fiscal agency 10,000 Manager loan department 10, 000 Manager at large 10,000 Manager certificates of indebtedness and securities departments 10,000 Manager statistics department 10,000 Manager bill department 8, 400 Manager personnel development department 8,000 Secretary 7, 500 Manager foreign department 7, 500 Manager personnel service department 7, 200 Manager check department 7, 200 Manager cash department 7, 000 Manager bank examinations department 6, 600 Assistant general counsel 6, 500 Manager auditing department , 6, 500 Manager methods and supplies department 6, 000 Manager collection department ^ 6,000 Manager Government securities sales department 6,000 Manager custody department 6> 000 Manager Government bond department 5, 500 Manager discount department 5,000 Manager Buffalo branch 7, 500 Cashier Buffalo branch 4, 800 Assistant cashier Buffalo branch 3, 600 Total 509,800 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 407 National banks in New York City. Annual salary. Position. Bank A. BankB. Bank C. Bank D. BankE. Bank F. OTiaixTnfLTi of hoard. $65, 000 $75,000 Vice chairman of board 20,000 Bo 32,000 Do 40,000 President 40,000 $75,000 $100,000 $100, 000 75,000 $75,000 Vice president 30,000 75,000 54,500 75,000 36,000 45,000 Do 24,000 50,000 38,000 23,000 36,000 40,000 Do 20,000 50,000 38, 000 21,000 36,000 40,000 Do 20,000 50,000 23,000 20,000 36,000 40,000 Do 20, 000 50,000 20,000 40,000 Do 20,000 45,000 30,000 Do 18,000 40,000 25,000 Do 15,000 35,000 25,000 Do 15,000 35,000 25,000 Do .. 15,000 35,000 20,000 Do 15, 000 35,000 15,000 Do 13,000 35,000 15,000 Do 12,000 35,000 15,000 Do 12,000 30,000 12,000 Do 12,000 30,000 12,000 Do 10,000 30,000 11,000 Do 10,000 25,000 11,000 Do 10,000 25,000 10,000 Do 10,000 25,000 Do 10,000 25,000 Do 10,000 25,000 Do 10,000 12, 500 Do 10,000 Do . .. 10,000 Do 9 000 Do 8,500 Do 8,000 Do 5 500 Other officers 189,200 702,000 132, 700 59, 880 51, 500 121, 500 Total 768,200 1,574, 500 386,200 318, 880 345, 500 627,500 SUMMARY. Annual salaries. Number of officers. Total. Average. Federal reserve bank. 40 $509,809 $12,745 Bank A . 67 768, 200 11,466 Bank B 82 1,574,500 19,201 Bank C 23 386,200 16,791 Bank D 12 318, 880 26,573 Bank E 12 345,500 28,792 Bank F .... 36 627, 500 17, 431 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 BEPORT OF THE FEDERAL RESERVE BOARD. Index of growth in number of officers and employees, in their aggregate salaries, and in business of the bank. [1915=1.] Personnel. Assets i t a i n es d . liabil- Volume of busi.iess. Officers. Offic p e l r o s y a e n es d . em- F re e s d e e r r v a e l Year notes Discount and and Gold Earning Federal open- settleassets. reserve market ment Number. Salaries. Number. Salaries. b no an te k s o ti p o e n r s a . - fund. in circulation. 1915 1 1 1 1 1 1 1 1 1916 1 1 2 2 5 1 3 4 1917 2 2 11 6 39 5 122 31 1918 3 3 36 19 82 10 534 59 1919 5 4 40 24 97 12 819 75 1920 5 5 40 29 95 12 989 88 Number of officersand employees Dec 31— July 1, 1921, 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent 1 l 1 1 1 1 1 Governor 1 l 1 1 1 1 1 Deputy governor l 2 4 2 4 4 Other officers 5 6 8 17 28 31 34 Total officers 7 9 12 23 32 37 40 Employees: Banking department 47 88 287 892 1,297 1,075 1,113 Bookkeeping department 5 10 15 42 79 126 173 Transit department 9 57 168 446 614 522 613 Federal reserve agent's department. 6 8 30 74 106 Auditing department 109 115 Fiscal agency department 299 1,219 741 461 343 General 6 9 42 27 170 532 584 Total employees 67 164 •817 2,634 2,931 2,899 3,047 Total officers and employees 74 173 829 2,657 2,963 2,936 3,087 Average number of employees per officer 10 18 68 115 92 78 76 Salaries of officers and employees. Dec.31— Julv 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent $16,000 $16,000 $20,000 $20,000 $30,000 $30,000 $30,000 Governor 30,000 15,000 30,000 30,000 50,000 s 25,000 50,000 Deputy governor .......... i 20,000 2 45,000 3 81,000 < 51,000 3 95,000 3107,000 Other officers 37,000 42,000 56,200 89,400 219,200 268,400 317,600 Total (bonus excluded)... 83,000 93,000 151,200 220,400 350,200 418,400 504,600 * Governor ad interim. s Governor ad interim and one deputy governor. 8 Four deputy governors. 4 Two deputy governors. 6 Half pay account leave of absence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 409 Salaries of officers and employees—Continued. Dec. 31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Employees: Banking department 60,588 97,552 301,648 945,360 1,608,220 1,609,610 1,660,590 Bookkeeping department... 4,620 10,700 15,360 47,680 101,766 202,320 282,420 Transit department 6,430 36,480 94,480 338,430 580,700 590,700 714,040 Federal reserve agent's de- 9,520 17,860 54,804 145,120 201,800 Auditing department 210,650 225,540 Fiscal agency department.. 360,932 1,501,840 989,656 723,680 557,560 General 5,540 8,460 37,440 33,260 200,118 738,793 842,153 Total (bonus excluded)... 77,178 153,192 819,380 2,884,430 3,535,264 4,220,873 4,484,103 Total, officers and employees 160,178 246,192 970,580 3,104,830 3,885,464 4,639,273 4,988,703 Average salary payable to— All officers 11,857 10,333 12,600 9,582 10,944 11,308 12,615 Officers other than chairman and Federal reserve agent, governor, and deputy governors 7,400 7,000 7,025 5,259 7,830 8,658 9,341 Employees....... . . ... 1,152 934 1,003 1,095 1,206 1,456 1,471 Extra compensation paid by the Federal Reserve Bank of New York for the years 1916-1921. [Salaries shown are annual salaries. Per cent of extra compensation based on actual salary received during period.] Per cent. Per cent. Jan. 1 to Dec. 31, 1916: Oct. 1 to Dec. 31, 1919: Up to $1,500 50 Up to $1,200 10 $1,201 to $3,000 71 $1,501 to $3,000 40 $3,001 to $12,000 5 $3,001 to $6,000 25 Jan. 1 to Dec. 31, 1920: * Jan. 1 to June 30, 1917: On first $1,500 or part thereof. 20 Up to $1,200 20 On next $500 or part thereof.. 15 $1,201 to $3,000 15 On next $500 or part thereof.. 10 $3,001 to $7,200 10 No additional per cent on July 1 to Dec. 31, 1917: amounts between $2,501 and Less than $1,500 15 $5,000. $1,500 to $5,000 10 Jan. 1 to Mar. 31, 1921: 1 Jan. 1 to June 30, 1918: On first $1,500 or part thereof.. 20 Less than $1,500 15 On next $500 or part thereof.. 15 $1,500 to $5,000 10 On next $500 or part thereof.. 10 July 1 to Dec. 31, 1918: No additional per cent on Up to $1,500 25 amounts between $2,501 and $1,501 to $3,000 20 $5,000. $3,001 to $5,000 15 Apr. 1 to June 30, 1921: l On the first $1,500 or part Jan. 1 to June 30, 1919: thereof 10 Up to $1,500 25 On the next $500 or part $1,501 to $3,000 20 thereof 7^ $3,001 to $5,000 15 On the next $500 or part July 1 to Sept. 30, 1919: thereof , 5 Up to $1,500 25 No additional per cent on $1,501 to $3,000 20 amounts between $2,501 and $3,001 to $5,000 15 $5,000. i Extra compensation applies only to salaries or portions of salaries up to $2,500. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

410 REPORT OF THE FEDERAL RESERVE BOARD. Principal asset and liability items at end of year. T r o e t s a e l r v c e a s s . h B co il u ls n t d e i d s . - Bills bought. Tot a al s s e e a t r s n . ing 1915 . . .. $270,122,000 $238,000 $8,715,000 $10,981,000 1916 302,410,000 7,071,000 41,457,000 51,748,000 1917 649,945,000 250,309,000 148,770,000 424,251,000 1918 672,528,000 697,342,000 77,577,000 905,216,000 1919 595,355,000 790,803,000 202,903,000 1,062,734,000 1920 618,171,000 871,439,000 113,740,000 1,046,363,000 Index of growth, 1915-1920 (1915= 1).... 2 3,662 13 95 Total circulation, Federal Ca s p u i r t p a l l u a s. nd Gross deposits. r a e n s d e rv F e e d n e o r t a e l s reserve bank notes. 1915 $11,063,000 $200,093,000 $73,300,000 1916 11,866,000 274,680,000 93,426,000 1917 19,345,000 731,459,000 397,354,000 1918 . 29,142,000 975,219,000 762,858,000 1919 67,473,000 976,066,000 862,289,000 1920 82,787,000 819,181,000 906,314,000 Index of growth, 1915-1920 (1915=1) 7 4 12 Volume of business transacted during the year. B co il u ls n t d e i d s . - Bills bought. Un s b i e t o c e u u d r g i S h ti t t e . a s tes T m o a a t r n a k t l d i e o d t o n i p s o s c e p . o n e u - ra n - t F no e t d b e e y s r a p b l a a i r n d e k s o . e u rv t e 1915 $4,820,000 $25,839,000 $57,119,000 $96,133,000 1916 22,330,000 123,406,000 $7,819,000 191,986,000 117,986,000 1917 6,511,275,000 464,965,000 110,884,000 6,973,790,000 479,935,000 1918 24,535,538,000 945,497,000 5,028,024,000 30,509,110,000 930,168,000 1919 42,449,491,000 1,211,399,000 3,132,983,000 46,793,873,000 1,134,822,000 1920 50,539,429,000 1,697,330,000 4,281,561,000 56,518,320,000 1,788,222,000 Index of growth, 1915- 1920(1915=1) 10,485 66 989 19 Transactions F no ed t b e e y s r a r b e l a d r n e e s k e e m . rv e e d Mo n ne u p y m ie c c b o e e s u r . n o t f ed, ch N ec u k m s b c e le r a o re f d. ch A ec m ks o u cl n e t a o re f d. th se ro t f t u l u g e n h m d . g en o t ld- 1915 1,262,000 $1,334,016,000 2 $556,432,000 1916 . .. . . $54,509,000 14,070,000 6,841,000 5,160,192,000 2,335,225,000 1917 65,665,000 53,051,000 19,408,000 20,104,527,000 17,118,917,000 1918 26,723,000 206,903,000 46,458,000 47,518,425,000 32,935,576,000 1919 632,420,000 477,476,000 74,464,000 56,540,748,000 41,932,723,000 1920 . 276,442,000 558,397,000 87,727,000 55,729,013,000 48,840,900,000 Index of growth, 1915l£20 (1915=1) 70 42 88 * Exclusive of certificates of indebtedness, a May 20,1915, to Dec. 31,1915. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE 411 Expenses of the Federal Reserve Bank of New York, Nov. 16 to Dec. 31, 1915 1916 1917 1918 1919 1920 1914. Expenses of operation: Salaries- Bank officers $10,367 $68,033 $92,650 $129,247 $189,901 $302,030 $383,760 Clerical staff 3,636 66,708 103,699 287,356 1,082/719 2,555,388 3,479,270 Special officers and watchmen 90 2,860 7,248 11,017 82,110 166,449 Fede A r l a l l ot a h d e v r isory council, 11,737 29,534 25,854 180,579 199,213 governors' and Federal reserve agents' conferences 2,707 4,696 1,312 1,605 1,558 Directors' meetings, legal fees, officers' and clerks' 1,791 traveling expenses, life insurance, and fidelity bond premiums 2,306 17,272 9,999 23,494 61,234 166,812 110,821 Assessments for Federal Reserve Board expenses.. i 63,209 39,029 50,252 100,876 181,875 221,868 Taxes and fire insurance 2,423 3,328 Telephone and telegraph... 91 2,024 2,751 10,082 33,054 65,725 81,979 Rent,light, heat, and power. 6,500 39,497 45,810 62,141 146,005 293,102 304,874 Printing and stationery 686' 10,782 20,067 46,009 137,960 236,653 270,383 All other, including postage and insurance on mail, security and currency shipments, repairs 'and alterations, etc 233,736 24,618 40,391 201,040 364,988 547,341 558,701 Total expenses of operation 57,412 297,710 378,077 851,484 2,146,805 4,613,220 5,782,204 Federal reserve currency (original cost, including shipping charges) 113,800 95,240 789,013 335,044 642,430 648,392 Miscellaneous charges, account note issues.. .. 12,938 15,010 27,921 105,167 159,767 Taxes on Federal reserve bank note circulation 169,514 207,401 Furniture and equipment 70,707 170, i*\3 204,014 201,491 Bank premises Total expenses 57,412 411,510 556,962 1,655,507 2,680,703 5,734,34,5 6,999,255 1 Total assessment for Federal Reserve Board expenses to Dec. 31, 1915. 2 Includes $32,408 expenses prior to Nov. 16, 1914. Current expenses of the Buffalo branch of the Federal Reserve Bank of New York. Salaries: Bank officers $8,600 $17,544 Clerical staff 68,213 123,028 Special officers and watchmen 5,418 11,334 All other 4,085 14,275 Directors' meetings, legal fees, officers' and clerks" traveling expenses, life insurance and fidelity bond premiums 12,741 3,937 Taxes and fire insurance 418 Telephone and telegraph 4,186 11,006 Rent, light, heat, and power 10,457 18,024 Printing and stationery 8,399 13,277 Furniture and equipment r 33,518 19,488 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 52,615 42,102 Total current expenses. 208,232 274,431 i Branch opened for business May 15,1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT D, PART 3. FEDERAL RESERVE BANK OP PHILADELPHIA. Comparison of salaries paid to officers of the Federal Reserve Bank as of Oct. 1, 1921, with salaries paid to officers of three of the large national banks in Philadelphia as of Sept. 6, 1921. Annual salary. Governor $25,000 Deputy governor 15,000 Chairman and Federal reserve agent 15,000 Cashier and secretary 12,000 Assistant Federal reserve agent 8,000 Assistant cashier 8, 000 Do 8, 000 Do 7,000 Do 6,500 Do 6, 500 Do 6, 500 Acting comptroller 4,000 Total 121. 500 National banks in Philadelphia. Annual salary. Position. Bank A. BankB. Bank C. Chairman . « . . $6,000 $12,000 President $80,000 36,000 45,000 Vice president 40,000 20,000 25,000 Do 25,000 12,500 13,500 Do . 20,000 12,000 Do 15,000 Do 15,000 Other officers 56,500 18,000 20,500 Total 251,500 104,500 116,000 SUMMARY. Annual salaries. Number of officers. Total. Average. Federal reserve bank . . 12 $121,500 $10,125 Bank A 15 251,500 16, 767 Bank B ... 8 104,500 13,063 BankC 7 116,000 16,571 Index of growth in number of officers and employees, in their aggregate salaries, and in business of the bank. (1915=1 ) Personnel. A li s a s b e i t l s i ti a e n s d . V b o u l s u in m e e s s o . f Date. Numb O er f . fice S rs a . laries. Num O e b m ff e i p r c . l e o rs y S e a a e n l s a d . ries. E a a s r s n e i t n s. g c n F r u o e e l t s a d e e t e r i c r v o i a e n r l - . a D m n o t i d i s p a o c e r o n o k r p s a u e . e - n t n t G tl f o e u l m d n d e s n . e t t- 1915 1 1 1 l 1 1 1 1 1916 1 1 2 1 3 2 4 3 1917 2 1 4 3 10 11 14 14 1918 3 2 9 6 31 26 90 23 1919 3 14 11 40 27 489 32 1920 3 3 19 15 35 32 281 38 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 413 Number of officers and employees. Dec. 31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent 1 1 1 1 1 1 1 Governor . . 1 1 1 1 1 1 1 DeDutv governor 1 1 1 1 1 Other officers 1 2 3 6 8 7 8 Total officers 3 4 6 9 11 10 11 Employees: Banking department 8 12 38 143 134 126 236 Bookkeeping department. . . 4 10 17 36 26 25 27 Transit department 6 35 74 98 186 211 252 Federal reserve agents' department. . 5 5 6 6 11 22 40 Auditing department 26 27 26 98 63 105 94 General 19 23 25 33 216 316 264 Total employees 42 85 186 414 636 831 940 Total officers and employees.. . 45 89 192 423 647 841 951 Average number of emplovees per officer 14 21 31 46 58 83 85 Salaries of officers and employees. Dec. 31- July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent $10,000 $10,000 $10,000 $10,000 $15,000 $15,000 $15,000 Governor 20,000 20,000 20,000 20,000 25,000 25,000 25,000 Deputy governor 12,000 9,000 12,000 15,000 15,000 Other officers 5,000 10,200 9,250 28,000 39,500 57,000 62,500 Total (bonus excluded)... 35,000 40,200 51,250 67,000 91,500 112,000 117,500 Employees: Banking department 14,400 15,940 34,084 137,740 173,060 176,420 319,610 Bookkeeping department... 3,300 9,360 18,080 47,540 29,700 34,520 38,920 Transit department 5,880 24,180 47,790 79,560 176,904 244,240 286,220 Federal reserve agents' department 5,976 7,140 8,060 7,880 27,130 47,900 85,418 Auditing department 48,190 52,440 Fiscal agency department.. 23,160 102,240 76,640 132,950 118,530 General 12,480 14,672 16,848 32,080 237,440 361,868 289,190 Total (bonus excluded)... 42,036 71,292 148,022 407,040 720,874 1,046,088 1,190,328 Total officers and em- 77,036 111, 492 199,272 474,040 812,374 1,158,088 1,307,828 Average salary payable to— All officers 11,666 10,050 8,541 7,444 8,318 11,200 10,682 Officers other than chairman and Federal reserve agent, governor, and deputy governors 5,000 5,100 3,083 4,667 4,938 8,142 7,812 Employees 1,000 796 1,133 1,258 1,266 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 REPORT OF THE FEDERAL RESERVE BOARD, Extra compensation paid by the Federal Reserve Bank of Philadelphia for the years 1917-1921. [Salaries shown are annual salaries. Per cent of extra compensation based on actual salary received during period.] Jan. 1 to Dec. 31, 1917: Percent. Jan. 1 to June 30, 1920: Per cent. $3,500 or less 10 Up to $1,500 20 Jan. 1 to June 30, 1918: $1,501 to $3,000.... 15 Up to $4,500 20 $3,001 to $4,000.... 10 July 1 to Dec. 31, 1918: July 1 to Dec. 31, 1920: Up to $5,000 20 Up to $1,500 20 Jan. 1 to June 30, 1919: $1,501 to $3,000 15 Up to $1,500 ,... 20 $3,001 to $4,000.... 10 $1,501 to $2,500 15 Jan. 1 to June 30, 1921: $2,501 to $4,000 10 Up to $1,500 10 July 1 to Dec. 31, 1919: $1,501 to $3,000.... 74 Up to $1,500 30 $3,001 to $4,000.... 5 $1,501 to $3,000 20 $3,001 to $4,000 10 Principal asset and liability items at end of year. Total cash Bills dis- Bills Total earnreserves. counted. bought. ing assets. 1915 $27,392,000 $172,000 $2,543,000 $6,226,000 1916 41,367,000 1,563,000 13, 656,000 18,509,000 1917 121,476,000 35,912,000 18,390,000 63,962,000 1918 134,022,000 178,820,000 3,011,000 193,249,000 1919 141,364,000 209,855,000 5,177,000 247,104,000 1920 205,390,000 172,383,000 12,689,000 216,967,000 Index of growth 1915-1920(1915=1) 7 1,002 5 35 s C u a a rp p n l i d t u a s l . de G p r o o s s i s ts. n F re o e s t d e e e r s r v a i e n l circulation. 1915 $5,270,000 $26,371,000 $8,759,000 1916 . . . . . . . .. 5,228,000 66,202,000 16,906,000 1917 6,142,000 121,855,000 92,977,000 1918 8,866,000 171,500,000 229,112,000 1919 16,689,000 200, 721,000 237,051,000 1920 25,495,000 165,007,000 278,321,000 Index of growth 1915-1920 (1915= 1). 5 6 32 Volume of business transacted during the year. United States Total discount disc B o i u ll n s ted. Bills bought. securities and open-marbought. ket operations. 1915 $5,137,000 $7,565,000 $2,000,000 $22,102,000 1916 22.328,000 53,122,000 2.500,000 85,772,000 1917 223,410,000 70,710,000 1 12,274,000 308,022,000 1918 1,833, 598,000 77,687,000 67,172, 000 1,978,467,000 1919 10, 730, 435,000 14,048,000 52,922,000 10,803,405,000 1920 r 820 258 000 41,232, 000 357,432,000 6,218,922,000 Index of growth 1915 1920 (1915=1) 1,133 5 179 281 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 415 Volume of business transacted during the year—Continued. Fe n d o b e t y e r s a a l g i r s e e s n s u t e e . r d ve n F o e t d b e e s y r r a a e l g d r e e e n e s m t e . r e v d e r m o ec t C e h e m e u iv r r b r e b e e d r n a n c f a r y k n o s d m . m o p t C e a h m i e u d r r b r o b e e r u n a n t c a y k t n o s d . 1915 2 $9,800,000 2 $640,000 1916 14,158,000 6,248,000 1917 93,600,000 13,344,000 1918 . 191,460,000 46,915,000 1919 195,660,000 189,635,000 $444,475,000 $389,269,000 1920 177,420,000 134,017,000 570,094,000 643,265,000 Index of growth 1915-1920 (1915=1) 18 209 Transactions Number of Amount of through gold cheeks cleared. checks cleared. settlement fund. 1915 * $472,389,000 1916 1,580,311,000 1917 . . ii, 728,000 $7,363,096,000 6,676,287,000 1918 17,134,000 11,292,410,000 10,885,905,000 1919 ... 37,004,000 14,766,937,000 15,267,158,000 1920 49,217.000 16,855,904,000 17,880,707,000 Index of growth 1915-1920 (1915—1) .. . 38 1 Exclusive of certificates of indebtedness. 2 Nov. 16, 1914, to Dec. 31, 1915. s Represents daily average for the period May 20, 1915 (date of first settlement), to Dec. 31, 1915, multiplied by 365. Expenses of the Federal Reserve Bank of Philadelphia. Nov. 16 to Dec. 31, 1915 1916 1917 1918 1919 1920 1914. Expenses of operation: Salaries— Bank officers $3,461 $32,580 $39,100 $46,206 $64,288 $96,929 $123,338 Clerical staff 2,777 31,309 52,398 97,749 283,624 577,104 799,385 Special officers and watchmen 667 5,384 6,012 8,311 14,976 44,088 70,921 All other 59,228 80,412 Federal advisory council, governors' and Federal reserve agents' conferences 31 1,473 1,335 524 512 591 714 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life insurance and fidelity bond premiums 1,160 10,342 10,908 14,198 26,582 59,197 63,588 Assessments for Federal Reserve Board expenses ^28,919 18,362 22,057 33,929 49,059 56,804 Taxes and fire insurance 48 15,775 20,063 Telephone and telegraph 70 1,022 1,243 3,128 9,949 22,001 26,057 Rent, light, heat, and power 1,294 8,858 10,397 12,361 9,851 19,116 40,671 Printing and stationery 730 3,291 6,648 11,091 34,366 78,477 113,644 AH other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 213,871 6,153 18,580 45,165 115,387 238,078 224,570 Total expenses of operation 24,061 129,331 164,983 260,838 593,464 1,260,243 1,620,167 Federal reserve currency (original cost, including shipping charges).. . 12,600 16,600 70,340 243,857 209,419 292,540 Miscellaneous charges, account note issues . 1,003 1,887 3,081 45,411 77,508 Taxes on Federal reserve banknote circulation 98,132 110,904 Furniture and equipment. 15,653 8,600 215,043 100,868 75,065 Bank premises 31,471 61,112 90 Total expenses 24,061 141,931 198,239 341,605 1,086,916 1,775,185 2,176,274 i Total assessment for Federal Reserve Board expenses to Dec. 31, 1915. Digitized for F2RInAclSudEeRs $13,305 expenses prior to Nov. 16,1914. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

416 REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT D, PART 4. FEDERAL RESERVE BANK OF CLEVELAND. Comparison of salaries paid to officers of the Federal reserve bank as of Oct. 1, 1921, with salaries paid to officers of three of the large member banks in Cleveland. Annual salary. Governor $30, 000 Chairman and Federal reserve agent 25,000 Deputy governor 12,000 Do 12,000 Cashier 9,000 Secretary 9,000 Assistant cashier 6, 500 Do 6,500 Do 6,000 Do 5,400 Auditor 5,400 Chief bank examiner 5, 000 Manager bank relations 4, 800 Assistant cashier 4, 500 Do 4,200 Assistant secretary 3, 900 Manager Pittsburgh branch 11,000 Cashier Pittsburgh branch 7, 500 Assistant Federal reserve agent, Pittsburgh branch 4, 300 Assistant cashier, Pittsburgh branch 4, 200 Do 3, 300 Manager Cincinnati branch 8, 500 Cashier Cincinnati branch 5, 000 Assistant Federal reserve agent, Cincinnati branch 3, 300 Assistant cashier, Cincinnati branch 3, 300 Do 3, 000 Total 202, 600 Member banks in Cleveland. Annual salary. Position. Bank A. Bank B. Bank C. Chairman $35,000 $20,000 $25,000 President - - 35,000 50,000 18,000 Vice president 35,000 36,000 16,000 Do 30,000 25,000 14,000 Do . 30,000 24,000 12,000 Do . . 30,000 15,000 12,000 Do 25,000 15,000 12,000 Do . 25,000 15,000 6,000 Do . 24,000 12,000 Do 24,000 12,000 Do .. . . 24,000 12,000 Do 24,000 12,000 Do . . .. . . 22,000 10,000 Do 22,000 10,000 Do . 22,000 9,000 Do 20,000 7,000 Do 20,000 6,000 Do ... . 20,000 5,000 Do 20,000 Do 20,000 Other officers 200,000 97,600 33,000 Total ... 707,000 392,600 148,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

417 EXPENSES OF FEDERAL RESERVE BANKS. Member banks in Cleveland—Continued. SUMMARY. Annual salaries. Number of officers. Total. Average. Federal reserve bank . . 26 $202,600 $7,792 Bank A 70 707,000 10,100 Bank B 40 392,600 9,815 Bank C 14 148,000 10,571 Index of growth in number of officers and employees, in their aggregate salaries, and in business of the bank. [1915=1.] Assets and liabili- Personnel. ties. Volume of business. Year. Numb O er f . fice S rs a . laries. Nu O m ffi b c p e e l r r o . s y a e S e n s a d . l a e r m ie - s. E a a s r s n e i t n s. g c F r n u e e o l s d a t e e t e r i r v o c a e n i l r . - a D m n o t i d i s a p o c r e o n o k r p s u a e . e - n t n t G tl f o e u l m n d d e s . n et t - 1915 1 1 1 ' 1 • 1 1 1 1 1916 1 1 2 1 3 1 3 8 1917 2 2 7 4 16 10 16 59 1918 3 2 19 11 27 24 106 118 1919 . . .. 4 3 20 12 36 25 221 156 1920 5 4 31 21 39 33 244 238 Number of officers and employees. Dec. 31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent 1 1 1 1 1 1 1 Governor 1 1 1 1 1 1 1 Deputy governor 2 2 Other officers 2 3 6 11 13 16 22 Total officers 4 5 8 13 15 20 26 Employees: Banking department 9 71 21 129 175 262 343 Bookkeeping department 4 15 39 38 50 79 Transit department . 2 36£ 73 169 211 353 285 Federal reserve agent's department 2 2 5 10 17 22 29 Auditing department 30 26 Fiscal agency department 70 203 105 141 165 General 10 10 19 26 65 91 96 Total employees 27 60 203 576 611 949 1,023 Total officers and employees 31 65 211 589 626 969 1,049 Average number of employees per officer 7 12 25 44 41 47 39 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 REPORT OF THE FEDERAL RESERVE BOARD. Salaries of officers and employees. Dec. 31- July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent $10,000 $10,000 112,000 $15,000 $20,000 $23,250 $25,000 Governor 18,000 20,000 20,000 20,000 25,000 30.000 30,000 Deputy governors 1 18,000 124,000 Other officers 7,000 10,750 21,050 48,850 65,199 83,500 123,600 Total (bonus excluded)... 35,000 40,750 53,050 83,850 110,199 154,750 202,600 Employees: Banking department 16,900 13,430 23,800 155,418 232,819 404,268 495,472 Bookkeeping department... 5,160 4,380 19,080 35,280 41,580 74,772 120,780 Transit department 1,080 23,370 52,710 130,150 179,620 386,532 305,596 Federal reserve agent's department 3,500 3,780 7,820 16,080 32,480 43,992 63,072 Auditing department 60,872 52,068 Fiscal agency department-. 87,180 321,884 184,589 200,156 242,732 General 6,900 1,040 16,440 22,800 66,045 120,447 135,553 Total (bonus excluded)... 33,540 53,000 207,030 681,612 737,133 1,291,039 1,415,273 Total officers and employees 5,540 93,750 260,080 765,462 847,332 1,445,789 1,617,873 Average salary payable to— Allofficers 5,750 8,150 6,631 6,450 7,346 7,737 7,792 Officers other than chairman and Federal reserve agent, governor and deputy governors 3,500 3,583 3,508 4,441 5,015 5,219 5,618 Employees 1,24C 883 1,020 1,183 1,206 1,360 1,383 1 2 deputy governors. Extra compensation paid by the Federal Reserve Bank of Cleveland for the years 1916-1921. [Salaries shown are annual salaries. Per cent of extra compensation based on actual salary received during period.] Jan. 1 to Dec. 31, 1916: Per cent. J u l y i to Sept. 30, 1920: Per cent. Up to $3,250 10 Up to $1,500 20 Jan. 1 to Dec. 31, 1918: $1,501 to $3,000 15 Up t© $1,500 20 $3,001 to $5,500 10 $1,501 to $3,000 15 Oct. 1 to Dec. 31, 1920: $3,001 to $5,000 10 Up to $1,500 20 Jan. 1 to Dec. 31, 1919: $1,501 to $3,000 15 Up to $1,500 20 $3,001 to $5,500 10 $1,501 to $3,000 15 Jan. 1 to Mar. 31, 1921: $3,001 to $5,500 10 Up to $1,500 16 Jan. 1 to Mar. 31, 1920: $1,501 to $3,000 12 Up to $1,500 20 $3,001 to $5,500 $1,501 to $3,000 15 Apr. 1 to June 30, 1921: $3,001 to $5,500 10 Up to $1,500 12 Apr. 1 to June 30, 1920: $1,501 to $3,000 9 Up to $1,500 20 $3,001 to $5,500 $1,501 to $3,000 15 July 1 to Sept. 30, 1921: $3,001 to $6,000 10 Up to $1,500 10 $1,501 to $3,000 7 $3,001 to $5,500 4 Principal asset and liability items at end of year. T r o e t s a e l r v c e a s s . h disc B o i u ll n s ted. Bills bought. Tota a l s s e e a t r s n . ing 1915 .. $32,812,000 $539,000 $804,000 $6,546,000 1916 . . 44,114, 000 1,007,000 10,153,000 21,825, 000 1917 127, 249,000 42, 896,000 21,112,000 103,554,000 1918 206,679,000 127,334,000 37,445,000 177,590,000 1919 191,342,000 164,517,000 . 48,607,000 237,551,000 1920 283,679,000 201,343,000 27,211,000 253,197,000 Index of growth 1915-1920 (1915=1) 9 374 34 39 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 419 Principal asset and liability items at end of year—Continued. Capital and Gross Federal reserve surplus. deposits. notes in circulation. 1915 . $5,941,000 $25,366,000 $10,708,000 1916 6,022,000 75,442,000 10,272,000 1917 8,026, 000 156, 980,000 101, 883, 000 1918 10, 849, 000 173, 951,000 251, 782, 000 1919 . . 18,622,000 208,822,000 264, 738, 000 1920 31,008,000 209, 916,000 348, 951,000 Index of growth 1915-1520 (1915= 1) 5 8 33 Volume of business transacted during the year. B co il u l n s t d e i d s . - Bills bought. Un s i b e t c o e u d u r g i S t h i t t e a . s tes T m o a a t r a n k l d e d t o is o p c p e o n e u ra n - t tions. 1915 $4,526,000 $2,963, 000 $2,357,000 $16,651,000 1916 6, 793,000 27, 542,000 8,403,000 53,398,000 1917 211,176,000 51,007,000 1 6, 786, 000 271,918,000 191g 1, 386,118,000 122,800,000 257,547,000 1,766,465,000 1919 3,125,856,000 261, 751,000 284,617,000 3,672,224,000 1920 2, 895,670,000 294,602,000 878,589,000 4,068,861,000 Index of growth 1915-1920 (1915-1) 640 99 373 244 Federal reserve Federal reserve Currency re- Currency paid notes issued notes redeemed ceived from out to by agent. by agent. member and member and other banks. other banks. 1915 2 $11,080,000 2 $80,000 1916 3,480,000 3,648,000 1917 100,100,000 5, 262,000 1918 190, 220,000 29, 370, 000 1919 163, 565,000 146,283,000 $383, 296,000 $362,123,000 1920 249,000,000 154,109,000 579, 048, 000 657, 982,000 Index of growth 1915-1920 (1915=1) 22 1,926 Transactions Number of Amount of through gold checks cleared. checks cleared. settlement fund. 1915 . . .. 3 $74,245,000 1916 ... 623,229,000 1917 5,901,000 $3,932,057,000 4,359,064,000 1918 14,008,000 9,422,430,000 8,794,203,000 1919 ... 29,789,000 12,456,799,000 11,555,908,000 1920 43,213,000 15,517,119,000 17,700,473,000 Index of growth 1915-1920 (1915=1) 238 1 Exclusive of certificates of indebtedness, a Nov. 16, 1914, to Dec. 31, 1915. 8 Represents daily average for the period May 20, 1915 (date of first settlement), to Dec. 31, 1915, multiplied by 365. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

420 REPORT OF THE FEDERAL, RESERVE BOARD. Expenses of the Federal Reserve Bank of Cleveland. Nov. 16 to Dec. 31, 1915 1916 1917 1918 1919 1920 1914. Expenses of operation: Salaries- Bank officers $3, 750 $30, 083 $39, 767 $50, 241 $81, 307 $99, 815 $143,171 Clerical staff 4,443 36, 089 39,044 84,811 297,579 494,639 872,339 Special officers and watchmen 917 716 4,357 16,901 17, 444 35,149 All other 200 176 2,769 9,049 71,687 112, 492 Federal advisory council, 1,133 governors' and Federal reserve agents' conferences 325 2,660 1,071 1,117 1,789 1,384 Directors' meetings, legal fees, officers' and clerks' 1,404 traveling expenses, life insurance and fidelity bond premiums 2,971 11, 593 9,994 16, 070 43,467 57, 911 61,725 Assessments for Federal Reserve Board expenses.. 1 33, 412 20,825 25,783 43,073 58,676 63,246 Taxes and fire insurance 204 1,939 533 3,183 Telephone and telegraph... 337 1,084 1,313 2,598 12,169 21,529 35,656 Rent, light, heat, and power 538 6,398 7,243 19, 720 40, 016 57,462 84,093 Printing and stationery 172 1,375 12,246 13,334 46,566 46,952 120,652 All other, including postage and insurance on mail, security and currency shipments, repairs and. alterations, etc 217,361 6,990 10,370 42, 795 124, 557 147, 841 259,901 Total expenses of operation 31,014 129, 561 144, 354 263, 753 717, 740 1,076, 278 1, 792,991 Federal reserve currency (original cost, including shipping charges) 9,014 3,738 91, 256 182, 092 168, 867 334,679 Miscellaneous charges, account note issues 2,132 3,069 6,569 16, 981 63, 519 Taxes on Federal reserve bank note circulation 80, 491 93,322 Furniture and equipment 8,097 45, 986 85, 784 53, 414 141,008 Bank premises 45,166 Total expenses 31,014 138, 575 158, 321 404,064 992,185 1, 396,031 2, 470,685 1 Total assessment for Federal Reserve Board expenses to Dec. 31,1915. 2 Includes $15,865 expenses prior to Nov. 16, 1914. Current expenses of the Cincinnati branch of the Federal Reserve Bank of Cleveland. 1918 i 1919 1920 Salaries: Bank officers $10, 533 $13, 303 $15, 931 Clerical staff 39,507 75, 211 110, 730 Special officers and watchmen 234 1,006 4,192 Allother 467 12,162 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life insurance and fidelity bond premiums 4,003 6,466 2,864 Taxes and fire insurance 53 118 234 Telephone and telegraph 1,838 2,337 6,611 Rent, light, heat, and power 4,902 6,955 9,106 Printing and stationery 9,152 8,066 17,064 Furniture and equipment 7,470 12,297 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 18,569 27,655 35, 736 Total current expenses 118,106 155, 470 226, 927 1 Branch opened for business Jan. 10,1918. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 421 Current expenses of the Pittsburgh branch of the Federal Reserve Bank of Cleveland. 19181 1919 1920 Salaries: Bank officers , $10,368 $14,578 $19,550 Clerical staff 46,824 91,288 168,171 Special officers and watchmen 1,835 3,715 11,216 All other 362 9,194 18,813 Director' meetings, legal fees, officers' and clerks' traveling expenses, life insurance and fidelityb ond premiums 7,978 6,155 Taxes and fire insurance 245 724 Telephone and telegraph 1,336 2,634 Bent, light, heat, and power 7,539 10,097 2,149 Printing and stationery 11,940 10,217 23,173 Furniture and equipment 18,805 9,603 34,811 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 19,485 40,428 65,849 Total current expenses , 121,635 199,732 357,577 i Branch opened for business Apr. 22,1918. EXHIBIT D, PART 5. FEDERAL RESERVE BANK OF RICHMOND. Comparison of salaries paid to officers of the Federal reserve bank as of Oct. 1, 1921, with salaries paid to officers of three of the large national banks in Richmond as of Sept. 6, 1921. Annual salary. Governor $18,000 Chairman and Federal reserve agent 15,000 Deputy governor 15 000 ? Bo 10,000 Assistant to governor 7 500 ? Do 7, 500 Assistant Federal reserve agent 7 000 7 Do 7,000 Cashier 7, 500 Counsel 5, 000 Auditor 5, 000 Assistant cashier 4, 500 Do 4, 500 Do 4, 500 Do 4, 500 Assistant auditor 3, 600 Manager, Baltimore branch 10, 000 Cashier, Baltimore branch 5, 400 Assistant cashier, Baltimore branch 4, 500 Assistant Federal reserve agent, Baltimore branch 4, 200 Assistant cashier, Baltimore branch 4,000 Do 3, 600 Do 3, 600 Assistant Federal reserve agent, Baltimore branch 3,000 Auditor, Baltimore branch 3,000 Total 167,400 85227°—22 28 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 REPORT OF THE FEDERAL RESERVE BOARD. National banks in Richmond. Annual salary. Position. Bank A. Bank B. Bank C. $15,000 President 20,000 $15,000 $25,000 Vice president 6,500 7,500 12,000 Do 6,500 6,500 8,000 Do .. 6,000 6,000 8,000 Do 600 3,000 5,500 Do 5,000 5,000 Other officers 11,400 15,000 26,100 Total 66,000 58,000 89,600 SUMMARY. Number Annual salaries. of officers. Total. Average. Federal reserve bank 25 $167,400 $6,69Q Bank A 10 66,000 6,600 Bank B 10 58,000 5,800 Bank C 13 89,600 6,892 Index of growth in number of officers and employees, in their aggregate ies, and in business of the bank. [1915-= 1.] Personnel. Assets t a ie n s d . liabili- Volume of business. Year. Officers. Office p rs lojr a e n es d . em- Earning F re e s d e e r r v a e l a D n i d sc o o p u e n n t Gold set- * Number. Salaries. Number. Salaries. assets. c n u o l t a e t i c o i n r- . m o ti p a o e r n k ra s e . - t tl f e u m nd en . t 1915 1 1 1 1 1 1 1 \ 1916 1 1 2 1 1 1 1 4 1917 2 1 4 2 6 4 10 11 1918 2 2 8 5 13 9 50 19 1919 3 3 13 9 17 10 93 48 1920 5 5 22 16 17 10 77 60 Number of officers and employees Dec.31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent 1 l 1 1 1 1 1 Governor 1 l 1 1 1 1 1 Deputy governor 1 l 1 1 2 2 2 Other officers 1 l 3 5 9 14 16 Total officers 4 4 6 8 13 18 20 Employees: Banking department 10 11 18 63 82 146 169 Bookkeeping department 3 5 6 12 13 30 30 Transit department 7 36 43 79 157 276 292 Federal reserve agent's department 1 1 2 4 9 15 33 24 23 Fiscal agency department 20 40 54 71 48 General 5 6 14 48 73 87 115 26 59 103 246 388 649 710 Total officers and employees 30 63 109 254 401 667 730 Average number of employees per officer 6 15 17 31 30 36 36 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 423 Salaries of officers and employees. Dec. 31. July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent $10,000 $10,000 $10,000 $10,000 $12,000 $15,000 $15,000 Governor 10,000 12,000 15,000 15,000 18,000 18,000 18,000 Deputy governor 4,000 5,000 6,000 7,500 U7,000 124,000 125,000 Other officers 3,500 3,500 8,550 14,000 33,800 69,250 85,200 Total (bonus excluded)... 27,500 30,500 39,550 46,500 80,800 126,250 143,200 Employees: Banking department 12,742 13,956 22,880 76,953 93,410 185,900 221,760 Bookkeeping department... 4,748 5,520 4,980 9,640 14,540 37,410 38,160 Transit department 2,278 11,599 21,954 59,485 125,228 266,848 288,090 Federal reserve agent's department 945 916 2,400 7,202 19,900 38,860 82,640 Auditing department 46,050 43,770 Fiscal agency department.. 21,024 54,930 63,330 85,726 60,410 General 6,439 8,819 8,540 36,810 83,560 110,932 140,900 Total (bonus excluded)... 27,152 40,810 | 81,778 245,020 J 399,968 771,726 875,760 Total officers and employees 54,652 71,310 121,328 291,520 480,768 897,976 1,018,960 Average salary payable to— All officers 6,875 7,625 6,592 5,812 6,215 7,014 7,160 Officers other than chairman and Federal reserve agent, governor, and deputy governor 3,500 3,500 2,850 2,800 3,756 4,946 5,325 Employees , 1,044 691 794 996 1,030 1,190 1,233 1 Two deputy governors. Extra compensation paid by the Federal Reserve Bank of Richmond for the years 1917-1921. [Salaries shown are annual salaries. Per cent of extra compensation based on actual salary received during period.] Jan. 1 to Dec. 31, 1917: Percent. Jan. 1 to June 30, 1920: Percent. Less than $1,500 15 Less than $1,500 25 $1,500 to $3,600 10 $1,501 to $3,000 20 Jan. 1 to Dec. 31, 1918: $3,001 to $7,500 15 Less than $1,500 15 July 1 to Dec. 31, 1920: l $1,500 to $5,000 10 On the first $1,500 or part thereof. 25 Jan. 1 o Dec. 31, 1919: On the next $500 or part thereof. 20 Up to $1,500 25 On the next $500 or part thereof. 15 $1,501 to $3,000 20 On the next $500 or part thereof. 10 $3,001 to $7,500 15 Principal asset and liability items at end of year. T r o es ta e l r v c e a s s . h B co il u ls n t d e i d s . - Bills bought. Tota a l s s e e a t r s n . ing $25,049,000 $7,507,000 $150,000 $7,739,000 1916.. 41,198,000 2,880,000 4,334,000 10,537,000 1917.. 62,506,000 29,657,000 13,156,000 46,018,000 1918.. 85,399,000 86,242,000 5,465,000 97,725,000 19.19.. 81,442,000 105,002,000 16,405,000 134,902,000 1920., 87,152,000 115,473,000 5,048,000 134,017,000 Index of growth 1915-1920 (1915=1).... 15 34 17 iThis payment to apply to officers and employees receiving up to $5,000 per annum. No extra compensation to apply on that portion of salaries in excess of $3,000. Extra compensation not paid to war loan organization. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

424 REPORT OF THE FEDERAL RESERVE BOARD. Principal asset and liability items at end of year—Continued. Capital and Federal Reserve surplus. Gross deposits. notes in circulation. 1915 $3,354,000 $16,830,000 $14,816,000 1916 3,346,000 44,833,000 19,293,000 1917 .. 3,780,000 66,781,000 56,564,000 1918 5,218,000 93,972,000 137,478,000 1919 10,213,000 144,490,000 145,765,000 1920 ... 15,830,000 100,474,000 155,169,000 Index of growth 1915-1920 (1915=1) 5 6 10 Volume of business transacted during the year. Bills dis- United States Total discount counted. Bills bought. securities and open marbought. ket operations. 1915 $44,891,000 $250,000 $45,262,000 1916 34,377,000 11,313,000 $4,335,000 50,555,000 1917 401,221,000 53,098,000 U,593,000 456,027,000 1918 2,159,845,000 70,766,000 32,723,000 2,263,334,000 1919 4,130,943,000 52,977,000 40,441,000 4,224,361,000 1920 3,346,322,000 51,712,000 84,002,000 3,482,036,000 Index of growth 1915-1920 (1915=1) 75 207 77 Fe n d o b e t y e r a s a l g i s r e e s n u s t e e . r d ve n F o e t d b e e y s r r a a e l g d r e e e n e s m t e . r e v d e m o C c t e u e h i r m e v r r e e b d n b e c a r f y n r a o k r n m e s d - . o C u u t a r n r to b e d n a m n c o y k t e h s m e . p r b a e id r 1915 2$16,680,000 2$1,050,000 1916 14,336,000 9,535,000 1917 51,770,000 11,430,000 1918 125,365,000 35,138,000 1919 162,777,000 162,070,000 $169,276,000 $177,321,000 1920 179,004,000 169,675,000 194,500,000 243,979,000 Index of growth 1915-1920 (1915=1) 11 162 Transactions Number of Amount of through gold checks cleared. checks cleared. settlement fund. 1915 3 $269,636,000 1916 1,027,139,000 1917 5,688,000 $3,403,950,000 2,968,692,000 1918 11,519,000 6,983,383,000 5,069,655,000 1919 20,934,000 9,304,180,000 13,032,545,000 1920 33,732,000 11,505,945,000 16,157,994,000 Index of erowth 1915-1920 (1915—1) 60 i Exclusive of certificates of indebtedness. « Nov. 16,1914, to Dec. 31,1915. * Represents daily average for the period May 20,1915 (date of first settlement), to Dec. 31, 1915, multiplied by 365. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

425 EXPENSES OF FEDERAL RESERVE BANKS. Expenses of the Federal Reserve Bank of Richmond. Nov. 16 to Dec. 1915 1916 1917 1918 1919 1920 31, 1914. Expenses of operation: Salaries- Bank officers $4,783 $25,978 $31,428 $36,200 $48,455 $74,796 $105,945 Clerical staff 2,592 24,736 38,388 64,557 173,118 326,746 617,525 Special officers and watchmen 20 1,026 648 700 4,868 7,497 15,066 Allother 181 1,389 1,774 1,882 5,008 16,283 34,749 Federal advisory council, governors' and Federal reserve agents' conferences 75 1,140 1,916 701 681 1,033 1,072 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life insurance, and fidelity bond premiums 2,567 10,349 11,578 9,427 17,819 25,196 49,368 Assessments for Federal Reserve Board expenses 118,266 11,743 14,256 19,814 29,535 34,555 Taxes and fire insurance 2,629 1,823 11,452 9,699 Telephone and telegraph 114 577 617 1,343 5,070 12,479 31,019 R P A r e l i l n n t t o , i t l n h i g g e h r a , t n , d i h n e s c a t l t a u , t d a io i n n n d g e p ry p o o w s e t- r. 9 3 6 1 4 2 6 4, , 0 4 3 9 9 5 6 7 , , 8 3 5 0 2 0 1 8 1 , , 5 99 7 4 4 3 1 6 1 , , 5 8 1 5 6 4 1 3 3 9 , , 0 0 3 8 4 3 8 1 4 7 , , 3 5 4 9 5 9 age and insurance on mail, security and currency shipments, repairs and alterations, etc 213,195 9,080 12,525 37,330 83,241 124,976 143,552 Total expenses of operation 24,803 103,075 124,769 189,593 408,267 682,110 1,144,494 Federal reserve currency (original cost including shipping charges)... 14,398 18,248 58,903 118,822 119,347 170,101 Miscellaneous charges, account note issues.. . 3,626 6,700 28,582 45,749 Taxes on Federal reserve bank note circulation 32,468 52,605 Furniture and equipment 2,349 4,514 28,414 9i, 786 49,420 103,126 Bank premises. .. 18 245 Total expenses 24,803 119,822 147,531 280,536 643,820 911,927 1,516,075 1 Total assessment for Federal Reserve Board expenses to Dec. 31,1915. 2 Includes $12,012 expenses prior to Nov. 16, 1914. Current expenses of the Baltimore branch of the Federal Reserve Bank of Richmond. 19181 1919 1920 Salaries: Bank officers $6,659 $13,490 $21,770 Clerical staff 41,830 90,833 173,606 Special officers and watchmen 2,891 5,742 10,122 All other 1,655 4,-121 5,558 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life insurance and fidelity bond premiums 3,210 5,511 5,645 Taxes and fire insurance 94 10,098 6,878 Telephone and telegraph 1,051 1,331 4,948 Rent, light, heat, and power 1,607 2,788 3,378 Printing and stationery 12,202 22,316 Furniture and equipment 27,181 21,472 34,129 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 21,876 29,547 35,910 Total current expenses 116,703 197,135 324,260 iBranch opened for business Mar. 1,1918. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 REPORT OF THE FEDERAL RESERVE BOAHD. EXHIBIT D, PART 6. FEDERAL RESERVE BANK OF ATLANTA. Comparison of salaries paid to officers of the Federal reserve bank as of Oct. 1, 1921, with salaries paid to officers of three of the large national banks in Atlanta as of Sept. 6,1921. Annual salary. Governor $18, 000 Chairman and Federal reserve agent 12, 000 Deputy governor 12, 000 Do 7, 500 Cashier 6, 900 Secretary 6, 900 General auditor 6, 000 Assistant Federal reserve agent 6, 000 Assistant cashier 5 000 ? Assistant Federal reserve agent 4 500 ? Assistant cashier 4 200 ? Do 4, 200 Do 4, 200 Do 4, 000 Manager, Birmingham branch 6, 000 Cashier, Birmingham branch 4 200 ? Assistant Federal reserve agent and auditor, Birmingham branch 2, 700 Manager, Jacksonville branch 5, 500 Cashier, Jacksonville branch 3, 600 Assistant Federal reserve agent and auditor, Jacksonville branch 2, 700 Manager, Nashville branch 4, 800 Cashier, Nashville branch : 3, 200 Assistant Federal reserve agent and auditor, Nashville branch 2, 700 Manager, New Orleans branch 11, 000 Assistant manager, New Orleans branch 5, 000 Cashier, New Orleans branch..' * 4, 500 Assistant cashier, New Orleans branch 4, 000 Do 3, 000 Assistant Federal reserve agent and auditor, New Orleans branch 4, 000 Manager, Savannah agency 4, 000 Assistant manager, Savannah agency 3, 700 Total 176, 000 - National banks in Atlanta. Annual salary. Position. Bank A. BankB. Bank C. Chairman $17,500 President.. . . - . . 17,500 $20,000 $15,000 Vice president 14,500 18,000 12,500 Do 10,000 15,000 6,300 Do . ... 7,500 6,250 Other officers 28,900 39,550 29,820 Total 95,900 98,800 63,620 SUMMARY. Annual salaries. Number of officers. Total. Average. Federal reserve bank 31 $176,000 $5,677 Bank A 12 95,900 7,992 BankB 10 98,800 9,880 BankC 11 63,620 5,784 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 427 Index of growth in number of officers and employees, in their aggregate ies, and in business of the bank. [1915=1.] Personnel. Asset b s i l a it n i d e s l . ia- V b o u l s u in m e e s s o . f Year. Officers. Offic p e l r o s y a ee n s d . em- E a a s r s n e i t n s. g n F r o e e t s d e e e r c r v i a e r l - a D n m i d s a c o r o k p u e e n t n t - s m G et o e tl l n d e t - Number. Salaries. Number. Salaries. culation. tions. fund. 1915 1 1 1 1 1 1 1 1 1916 1 1 2 1 1 1 1 3 1917 1 1 3 3 3 4 4 10 1918 3 2 8 6 12 7 29 21 1919 3 3 9 8 15 9 60 29 1920 4 4 11 9 18 10 66 41 Number of officers and employees. Dec.31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 Other officers 4 4 3 14 17 20 18 Total officers 6 6 5 16 20 23 22 Employees: Banking deDartment. 23 21 35 85 98 112 149 Bookkeeping department 3 5 6 15 32 44 47 TV an sit dpnartment 2 24 28 68 109 104 102 Federal reserve agent's department 2 3 3 5 10 17 16 Auditing department 22 25 TTicp«l flppnov deDartment 51 93 71 60 72 G enaral 5 6 4 35 46 64 89 Total employees 35 59 127 301 366 423 500 Total officers and emplovees 41 65 132 317 386 446 522 Average number of employees'per officer 6 10 25 19 18 18 23 Salaries of officers and employees. Dec. 31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent $7,500 $9,000 $10,000 $10,000 $10,000 $12,000 $12,000 Governor 9,000 9,000 10,000 10,000 15,000 18,000 18,000 7,500 10,000 119,500 Other officers 13,100 12,060 11,380 53,400 69,100 84,800 78,800 Total (bonus excluded)... 29,600 30,060 31,380 73,400 101,600 124,800 128,300 Employees: Banking department 23,928 21,828 37,690 92,770 113,850 125,568 195,370 Bookkeeping department... 3,600 5,100 6,480 17,100 33,000 45,600 57,420 1,260 15,900 20,180 53,790 98,400 106,010 111,530 12 deputy governors. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

128 KEPORT OF THE FEDERAL RESERVE BOARD. Salaries of officers and employees—Continued. Dec. 31— July 1, 1921. 1916 1917 1918 1919 1920 Employees—Continued. Federal reserve agent's department $3,200 $4,380 $5,220 $9,180 $21,250 $30,277 $39,120 Auditing department 34,080 44,860 Fiscal agency department.. 61,010 102,240 82,980 79,820 100,700 General.. 3,180 4,0 3,120 25,598 36,288 64,568 91,996 Total (bonus excluded)... 35,168 51,288 133,700 300,678 385,768 485,923 640,996 Total officers and employees 64,768 81,348 165,080 374,078 487,368 610,723 769,298 Average salary payable to: All officers 4,933 5,010 6,276 4,587 5,080 5,426 Officers other than chairman and Federal reserve agent, governor, and deputy governors 3,275 3,015 3,793 3,814 4,065 4,240 4,378 Employees 1,005 1,053 1,054 1,149 1,281 Extra compensation paid by the Federal Reserve Bank of Atlanta for the years 1918-1921. [Salaries shown are annual salaries. Per cent of extra compensation based on actual salary recei ved during period.] Jan. 1 to Dec. 31, 1918: Per cent. July 1 to Dec. 31, 1920: Per cent. Up to $1,500 20 Up to $1,500 25 $1,501 to $3,000.... 15 $1,501 to $3,000.... 20 $3,001 to $5,000.... 10 $3,001 to $6,000.... 15 Jan. 1 to Dec. 31, 1919: Jan. 1 to June 30, 1921: Up to $1,500 25 Up to $1,500 10 $1,501 to $3,000.... 20 $1,501 to $3,000.... $3,001 to $5,000.... 15 $3,001 to $6,000.... Jan. 1 to June 30, 1920: Up to $1,500 25 $1,501 to $3,000.... 20 $3,001 to $6,000.... 15 Principal asset and liability items at end of year. T r o es ta e l r v c e a s s . h disc B o i u ll n s ted. Bills bought. Tota a l s s e e a ts rn . ing 1915 $23,282,000 $8,131,000 $72,000 $8,533,000 1916 34,766,000 2,964,000 4,448,000 10,348,000 1917 72,010,000 15,028,000 6,497,000 25,697,000 1918 63,839,000 84,035,000 12,515,000 103,183,000 1919 104,908,000 93,052,000 16,639,000 125,736,000 1920 89,340,000 132,600,000 3,571,000 152,961,000 Index of growth, 1915-1920 (1915=1) 4 16 50 18 Ca s p u i r t p a l l u a s n . d Gross deposits. Fed n e o ra te l s re i s n erve circulation. 1915 $2,422,000 $13,702,000 $17,656,000 1916 . 2,450,000 31,509,000 24,869,000 1917 2,853,000 51,776,000 64,915,000 1918 . 3,966,000 72,586,000 120,672,000 1919 8,123,000 101,005,000 155,511,000 1920 12,396,000 73,551,000 173,406,000 Index of growth, 1915-1920(1915=1) 5 5 10 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 429 Volume of business transacted during the year. B co il u ls n t d e i d s . - Bills bought. Un s b i e t c o e u u d r g i S t h i t t e a . s tes T m o a a t r n a k l d e d t o is p o c e p o n e u - ra n - t tions. 1915 $34,209,000 $72,000 $34,611,000 1916 22,324,000 12,544,000 $2,596,000 37,884,000 1917 . 95,115,000 25,387,000 18,275,000 129,193,000 1918 930,130,000 45,478,000 40,238,000 1,016,113,000 1919 . . . .. 2,005,778,000 51,661,000 28,823,000 2,086,263,000 1920 2,231,946,000 39,577,000 18,897,000 2,290,420,000 Index of growth 1915-1920 (1915= 1) 65 550 66 Federal reserve Federal reserve Currency Currency notes issued notes redeemed received from paid out to by-agent. by agent. member and member and other banks. other banks. 1915... . a$21,226,000 *$2,276,000 1916 17,705,000 10,736,000 1917 . 54,893,000 13,945,000 1918 117,510,000 60,757,000 1919 183,598,000 147,110,000 $219,365,000 $175,453,000 1920 196,035,000 176,383,000 335,485,000 288,976,000 Index of growth 1915-1920 (1915=1) 9 77 Transactions Number of Amount of through gold checks cleared. checks cleared. settlement fund. 1915 3 $153,964,000 1916 433,980,000 1917 4,031,000 $1,636,315,000 1,585,108,000 1918 7,449,000 3,588,293,000 3,292,553,000 1919 14,256,000 5,487,105,000 4,418,973,000 1920 . 17,884,000 6,131,660,000 6,322,511,000 Index of growth 1915-1920 (1915=1) 41 i Exclusive of certificates of indebtedness, a Nov. 16,1914, to Dec. 31,1915. *Represents daily average for the period May 20, 1915 (date of first settlement), to Dec. 31,1915, multiplied by 365. Expenses of the Federal Reserve Bank of Atlanta. Nov. 16 to Dec. 1915 1916 1917 1918 1919 1920 31,1914. Expenses of operation: Salaries— Bank officers $2,663 $26,444 $31,867 $36,940 $70,643 $116,952 $156,996 Clerical staff 1,872 24,674 39,738 58,172 124,938 289,855 433,196 Special officers and watchmen 170 2,484 3,258 3,424 5,280 10,037 15,631 All other 3,060 12,934 24,502 Federal advisory council, governors' and Federal reserve agents' conferences 63 1,522 1,637 779 667 1,178 1,771 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life insurance, and fidelity bend premiums 948 15,641 11,517 11,083 16,075 32,612 57,310 Assessments for Federal Reserve Board expenses.. U3,174 8,547 10,154 15,369 22,391 27,882 Taxes and fire insurance 1,211 3,276 8,268 10,774 Telephone and telegraph.... 67 795 935 1,429 5,796 27,314 54,335 »Total assessment for Federal Reserve Board expenses to Dec. 31,1915. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

430 REPORT OF THE FEDERAL RESERVE BOARD. Expenses of the Federal Reserve Bank of Atlanta—Continued. Nov. 16 to Dec. 1915 1916 1917 1918 1919 1920 31,1914. Expenses of operation—Contd. Rent, light, heat, and power. $813 $7,943 $13,005 $15,226 $19,484 $17,907 $25,528 Printing and stationery 74 4,729 5,473 9,357 23,782 46,294 80,240 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc a 15,709 7,252 17,627 38,471 90,553 137,341 158,444 Total expenses of operation 22,379 104,658 133,604 186,246 378,923 723,083 1,046,609 Federal Reserve currency (original cost, including shipping charges) 24,574 12,167 69,128 149,390 148,735 126,009 Miscellaneous charges, account note issues 9,314 11,536 72,808 Taxes on Federal Reserve bank note circulation. 41, 561 63,958 Furniture and equipment 2,317 4,442 18,923 89, 846 46,844 76,057 Bank premises.. 458 Total expenses 22,379 131,549 150,213 274,297 627,473 972,217 1,385,441 a Includes $15,255, expenses prior to Nov. 16,1914. Current expenses of the Jacksonville branch of the Federal Reserve Bank of Atlanta. 19181 1920 Salaries: Bank officers $5,545 $10,920 $13,369 Clerical staff 6,270 19,963 32, 760 Special officers and watchmen 37 304 1,200 All other '. 33 203 2,423 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life insurance and fidelity bond premiums 834 2,411 1,606 Taxes and fire insurance 24 22 Telephone and telegraph 261 4,162 7,989 Rent, light, heat, and power 1,039 4,831 6,431 Printing and stationery 2,598 3,239 6,254 Furniture and equipment 5,300 5,686 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 4,482 12,852 18,199 Total current expenses.. 26,423 59,780 95,939 1 Branch opened for business Aug. 5, 1918. Current expenses of the Nashville branch of the Federal Reserve Bank of Atlanta. 19191 1920 Salaries: Bank officers $2,500 $11,267 Clerical staff 5,297 30,986 Special officers and watchmen 47 376 All other 687 431 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life insurance and fidelity bond premium 1,690 1,405 Taxes and fire insurance 110 Telephone and telegraph 567 7,119 Rent, light, heat, and power 467 3,217 Printing and stationery 5,269 6,496 Furniture and equipment 5,658 6,485 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 3,347 14,682 Total current expenses 25,639 82,464 1 Branch opened for business Oct. 21,1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 431 Current expenses of the New Orleans branch of the Federal Reserve Bank of Atlanta. 19151 1916 1917 1918 1919 1920 Salaries: Bank officers $2,139 $7,108 $10,566 $20,426 $26,530 Clerical staff 2,572 7,237 9,630 20,072 46,807 66,956 Special officers and watchmen 434 1,411 1,476 1,845 3,069 4,759 All other 687 1,823 3,685 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life insurance, and fidelity bond premiums 1,365 1,349 2,118 4,190 5,741 9,064 Taxes and fire insurance 598 4,532 4,738 Telephone and telegraph 97 396 449 1,219 4,078 8,238 Rent, light, heat, and power 953 3,093 3,171 3,746 4,721 5,994 Printing and stationery 732 547 1,184 6,138 9,468 16,283 Furniture and equipment 2,279 1,947 2,524 7,748 10,726 Bank premises 116 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 712 3,122 6,001 17,508 21,833 31,705 Total current expenses. 11,283 26,210 37,119 76,429 136,466 190,587 i Branch opened for business Sept. 10, 1915. Current expenses of the Birmingham branch of the Federal Reserve Bank of Atlanta. 19181 1919 1920 Salaries: Bank officers $5,350 $11,698 $13, 878 Clerical staff 5,913 16,320 23,155 Special officers and watchmen. 300 1,165 1,041 Allother. 418 1,886 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life insurance, and fidelity bond premiums 612 1,155 630 Telephone and telegraph 400 3,328 6,344 Rent, light, heat, and power 2,400 5,295 6,657 Printing and stationery 1,894 2,405 3,386 Furniture and equipment 2,846 3,003 All other—including postage and insurance on mail, security and currency, shipments, repairs and alterations, etc , 4,316 10,728 16,310 Total current expenses. 21,867 55, 358 76,290 * Branch opened for business Aug. 1,1918. Current expenses of the Savannah agency of the Federal Reserve Bank of Atlanta. 1920 Salaries: Bank officers $6,908 Clerical staff 457 Allother... 1,100 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life insurance and fidelity bond premiums Telephone and telegraph Rent, light, heat, and power , Printing and stationery Furniture and equipment All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc Total current expenses 12,443 * Agency opened for business Feb. 4,1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

432 REPORT OF THE FEDERAL RESERVE BOARD. EXHIBIT D, PART 7. FEDERAL RESERVE BANK OF CHICAGO. Comparison of salaries paid to officers of the Federal reserve bank as of Oct. 1, 1921, with salaries paid to officers of three of the large national banks in Chicago as of Sept. 6, 1921. Annual salary Governor. $35, 000 Chairman and Federal reserve agent 24. 000 Deputy Governor 20, 000 Do 18. 000 Do 13, 800 Controller, loans and credits 10, 000 Assistant Federal reserve agent and secretary 10, 000 Assistant Federal reserve agent 9, 000 Counsel 8, 000 Auditor 7, 000 Controller, fiscal agency 7, 000 Controller, investments 6, 500 Controller, collections 6J 500 Controller, cash and custodies 6, 500 Controller, accounting 6, 500 Controller, administration 6, 500 Controller, member bank accounts 6, 500 Manager, Dank relations department 6, 000 Manager, loans (Illinois and Indiana) 5, 500 Manager, securities department 5, 500 Manager, cash department 5, 500 Manager, Government bond department 5, 500 Manager, personnel department 5, 500 Manager, statistical department 5, 500 Assistant auditor 5, 000 Manager, service department 5, 000 Manager, disbursing department 5J 000 Manager, cash custody department 5, 000 Manager, credit department 5, 000 Manager, loans (Michigan and Wisconsin) 4, 500 Manager, member bank accounts 4, 500 Manager, accounting department 4, 500 Manager, investment department 4, 000 Manager, collection department 4, 000 Manager, planning department 4, 000 Manager, Detroit branch 11, 000 Cashier, Detroit branch 6, 000 Assistant cashier, Detroit branch 5, 500 Assistant Federal'reserve agent, Detroit branch 5, 500 Assistant cashier, Detroit branch 4, 500 Acting assistant Federal reserve agent, Detroit branch 3. 000 Total 325,800 National banks in Chicago. Annual salary. Position. Bank A. Bank B. Bank C. Chairman $75,000 $60,000 President $36,000 50,000 8,333 Vice president 25,000 37,500 20 000 Do 20,000 37,500 18,000 Do 18,000 37,500 18,000 Do 15,000 26,000 14,000 Do 12,000 26,000 12,000 Do 9 000 15 000 Do 9,000 15,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

433 EXPENSES OF FEDERAL RESERVE BANKS. National banks in Chicago—Continued. Annual salary. Position. Bank A. Bank B. Bank C. Vice President—Continued. ' Do $9,000 $15,000 Do 8 000 12,000 Do 7,500 9,000 Do 6,000 Other officers 34,500 65,000 $38,500 Total 209,000 420,500 188,833 SUMMARY. Annual salaries. Number of officers. Total. Average. Federal reserve bank 41 $325,800 $7,946 Bank A 19 209,000 11,000 Bank B .... 22 420,500 19,114 Bank C 12 188,833 15,736 Index of growth in number of officers and employees, in their aggregate salaries, and in business of the bank. [1915= 1.1 Personnel. Assets and liabilities. Volume of business. Year. Officers. Offic p e l r o s y a ee n s d . em- Earning F re e n s d o e e t r e r v a e l D a m n i d s a c r o o k p u e e n t n t s G et o t l l d e- assets. circula- oper- ment Number. Salaries. Number. Salaries. tion. ations. fund. 1915 1 1 1 1 1 1 1 1 1916 1 1 2 2 2 2 3 3 1917 2 2 7 5 11 67 23 15 1918 5 3 16 10 21 160 132 27 1919 7 4 24 15 37 186 213 39 1920 9 5 35 25 47 203 281 45 Number of officersand employees Dec.31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent 1 1 1 1 1 1 1 Governor 1 l 1 1 1 1 1 Deputy governor 1 1 1 1 1 2 3 Other officers. 1 2 6 17 24 32 39 Total officers 4 5 9 20 27 36 44 Employees: Banking department ...... 18 33 36 155 274 370 455 Bookkeeping department 4 9 10 24 31 40 72 Transit department 9 40 61 124 299 458 444 Federal reserve agent's department 2 2 5 11 17 37 71 Auditing department 27 32 34 Fiscal agency department ....... 166 292 277 300 257 General 13 21 77 189 247 458 404 46 105 355 795 1,172 1,695 1,737 Total officers and employees 50 110 364 815 1,199 1,731 1,781 Average number of employees per officer 12 21 39 40 44 47 39 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

434 REPORT OF THE FEDERAL RESERVE BOARD. Salaries of officers and employees. Dec. 31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent $10,000 $10,000 $10,000 $12,000 $18,CCO $24,000 $24,000 Governor 20,000 20,000 24,000 24,000 30,000 35,000 35,000 Deputy governor 10,000 10,000 11,000 12,000 15,GOO 126,000 2 51,8C0 Other officers 4,000 7,500 22,500 67,000 117,000 141,950 222,600 Total (bonus excluded)... 44,000 47,500 67,500 115,0C0 180,000 226,950 333,400 Employees: Banking department 21,426 31,880 47,880 180,910 352,782 561,180 673,400 Bookkeeping department... 4,100 8,700 9,520 25,100 38,580 54,620 105,480 Transit department 8,700 3C,240 49,280 109,160 207,236 510,460 557,620 Federal reserve agents' dement 7,2C0 7,8G0 13,800 17,120 33,460 72,560 138,450 Auditing department 34,900 48,080 58,280 Fiscal agency department.. 215,930 354,370 365,538 432,200 388,880 General 11,134 20,985 61,130 183,800 274,091 541,400 522,820 Total (bonus excluded)... 52,560 99,605 397,540 870,460 1,306,587 |2,220,500 2,444,930 Total officers and employees 96,560 147,105 465,040 985,460 1,486,587 2,447,450 2,778,330 Average salary payable to— All officers 11,000 9,500 7,500 5,750 6,666 6,304 7,577 Officers other than chairman and Federal reserve agent, governor, and deputy governors 4,000 3,750 3,750 3,941 4,875 4,436 5,708 Employees 1,142 949 1,120 1,094 1,115 1,310 1,408 1 Two deputy governors. 2 Three deputy governors. Extra compensation paid by the Federal Reserve Bank of Chicago for the years 1916-1921. [Salaries shown are annual salaries. Per cent of extra compensation based on actual salary received Jan. 1 to Dec. 31, 1916: Percdeunrti.ng peJraiond.. ]1 to Sept. 30, 1919: Percent. Up to $3,500 5 Up to $1,500 20 Jan. 1 to Dec. 31, 1917: $1,501 to $3,000 15 Up to $6,000 10 $,J,,001 to $5,000 10 Jan. 1 to Dec. 31, 1918: Jan. 1 to Dec. 31, 1920: Up to $1,500 20 Up to $1,500 20 $1,501 to $3,000 15 $1,501 to $3,000 15 $3,001 to $5,000 10 $3,001 to $6,500 1 10 Principal asset and liability items at end of year. Total cash Bills dis- Bills bought. Total earning reserves. counted. assets. 1935 $41,428,000 $4,005,000 $2,016,000 $11,495,000 1916 61,563,000 4,438,000 10,337,000 26,476,000 1917 230,834,000 105,119,000 9,182,000 124,686,000 1918 423,574,000 164,090,000 62,880,000 247,091,000 1919 381,345,000 286,909,000 92,650,000 423,824,000 1920 311,520,000 475,563,000 25,741,000 545,406,000 Index of growth 1915-1920 (1915=1) 8 119 13 47 * Only 1 officer received more than $6,000, his compensation being at the rate of $6,500 per annum. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 435 Principal asset and liability items at end of year—Continued. Capital and Federal reserve surplus. Gross deposits. notes in circulation. 1915 $6,645,000 $55,067,000 $2,685,000 1916 6,684,000 111,987,000 4,536,000 1917 9,308,000 201,245,000 180,628,000 1918 . . 14,501,000 289,488,000 428,820,000 1919 26,639,000 369,130,000 500,139,000 1920 .. 42,893,000 320,081,000 545,395,000 Index of growth 1915-1920 (1915=1) 6 6 203 Volume of business transacted during the year. Bills dis- United States Total discount counted. Bills bought. securities and open marbought. ket operations. 1915 $9,239,000 $5,782,000 $4,026,000 $26,731,000 1916 23,178,000 27,061,000 8,644,000 68,616,000 1917 521,872,000 61,143,000 141,379,000 626,558,000 1918 3,265,850,000 122,787,000 146,389,000 3,536,026,000 1919 4,556,312,000 292,012,000 848,524,000 5,696,848,000 1920 6,305,492,000 345,021,000 847,954,000 7,498,467,000 Index of growth 1915-1920 (1915= 1) 682 60 211 281 Fe n d o b e t y e r a s a l g i r s e e s n s u t e e . r d ve F no e t d b e e y s r a r a e l g d r e e e n s e t e m . rv e e d m o C c t e u e h i m r e v r r e e b d n b e c r a f y n r a o k r n m e s d - . o C u u t a r n t r b o e d a n m n o c k y t e h s m . p er b ai e d r 1915 2 $5,140,000 2$760,000 1916 4,381,000 1,578,000 1917 188,600,000 4,994,000 1918 305,840,000 45,691,000 1919 324,320,000 239,799,000 $648,102,000 $614,188,000 1920 345,330,000 246,552,000 971,684,000 1,037,095,000 Index of growth 1915-1920 (1915=1) 67 324 Transactions Number of Amount of through gold checks cleared. checks cleared. settlement fund. 1915 3$526,575,000 1916 .. 1,573,807,000 1917 7,532,000 $5,383,610,000 7,661,187,000 1918 17,845,000 10,957,230,000 13,993,659,000 1919. . . 37,592,000 14 125 543 000 20,733,397,000 1920 60,520,000 18,793,460,000 23,714,809,000 Index of growth 1915-1920 (1915== 1) 45 i Exclusive of certificates of indebtedness, a Nov. 16, 1914, to Dec. 31, 1915. 3 Represents daily average for the period May 20.1915 (date of first settlement), to Dec. 31.1915. multiplied by 365. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

436 REPORT OF THE FEDERAL RESERVE BOARD. Expenses of the Federal Reserve Bank of Chicago. Nov. 16 to Dec. 1915 1916 1917 1918 1919 1920 31,1914. Expenses of operation: Salaries- Bank officers $6,200 $50,000 $52,385 $63,761 $105,819 $158,083 $216,541 Clerical staff 5,027 42,225 65,311 120,907 405,610 881,142 1,672,550 Special officers and watchmen 414 4,777 5,846 10,289 32,550 64,752 94,494 Allother 588 3,434 4,198 5,138 11,958 80,785 123,324 Federal advisory council, governors' and Federal reserve agents' confer- Di e r n e c c e to s rs' meetings, legal 414 2,004 2,022 1,502 1,468 1,423 2,079 fees, officers' and clerks' traveling expenses, life insurance and fidelity As b s o e n ss d m p e r n e t m s ium fo s r Federal 606 13,846 12,748 13,621 42,144 49,137 102,368 Reserve Board expenses.. 136,565 23,329 30,021 49,378 80,170 101,568 Taxes and fire insurance 513 253 4,535 Telephone and telegraph... 62 1,793 1,780 3,087 19,092 34,009 83,158 Rent, light, heat, and power 2,894 26,470 28,830 30,925 57,977 105,564 163,950 Printing and stationery 2,849 7,507 9,964 24,159 75,877 101,466 219,420 All other, including postage and insurance on mail, security and currency shipments, repairs, and alterations, etc 2 20,929 11,651 25,683 75,519 274,238 296,514 477,514 Total expenses of operation 39,983 200,272 232,096 378,929 1,076,624 1,853,298 3,261,501 Federal reserve currency (original cost, including snipping charges) 5,329 5,113 202,826 388,682 400,418 550,291 Miscellaneous charges, account note issues.. 522 2,314 13,004 62,558 102,672 Taxes on Federal reserve bank note circulation 133,970 174,252 furniture and equipment 3,210 25,000 32,225 172,365 98,080 289,064 Bank premises 75,460 Total expenses 39,983 208,811 262,731 616,294 1,650,675 2,548,324 4,453,240 1 Total assessment for Federal Reserve Board expenses to Dec. 31,1915. «Includes $16,641 expenses prior to Nov. 16,1914. Current expenses of the Detroit branch of the Federal Reserve Bank of Chicago. 19181 1919 1920 Salaries: Bank officers $11,250 $18,750 $26,966 Clerical staff 21,334 40,660 178,707 Special officers and watchmen 4,446 7,516 13,563 All other 1,089 5,804 14,807 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life insurance and fidelity bond premiums 4,707 4,102 12,123 Taxes and fire insurance 231 190 1,375 Telephone and telegraph 2,427 3,819 14,666 Rent, light, heat, and power 6,610 9,153 14,718 Printing and stationery 2,278 3,882 26,767 Furniture and equipment 6,079 44,881 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 44,987 24,585 58,849 Total current expenses. 99,359 124,540 407,422 1 Branch opened for business Mar. 18,1918. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 437 EXHIBIT D, PART 8. FEDERAL RESERVE BANK OF ST. LOUIS. Comparison of salaries paid to officers of the Federal reserve hank as of Oct. 1, 1921, with salaries paid to officers of three of the large national banks in St. Louis as of Sept. 6, 1921. Annual salary. Governor $25,000 Chairman and Federal reserve agent 18,000 Deputy governor 12,000 Counsel and secretary 8,500 Cashier 7,000 Auditor 7,000 Assistant Federal reserve agent 7,000 Assistant cashier 6,000 Do 5,400 Do 4,500 Do 4,000 Do 3,750 Do - 3,500 Manager Little Rock branch 6,000 Cashier Little Rock branch 4,000 Assistant cashier Little Rock branch 3,000 Manager Louisville branch 7,500 Cashier'Louisville branch 5,000 Assistant cashier Louisville branch 2,750 Manager Memphis branch 7,500 Cashier Memphis branch 5,000 Assistant cashier Memphis branch 3,300 Total 155,700 National banks in St. Louis. Annual salary. Position. Bank A. BankB. Bank C. President $50,000 $45,000 $25,000 Executive manager 40,000 Do 35,000 Vice president 25,000 20,000 15,000 Do 25,000 18,000 12,000 Do ... 18,000 16,500 7,500 Do ... 18,000 12,000 Do 1G 000 11 500 Do 15,000 10,000 Do 15 000 in 000 Do 15', 000 9,000 Do .. 15,000 Do 12,500 Do . . . 12,000 Do . 12,000 Do 12,000 Do 7,000 Other officers 114,500 46,000 21,000 Total 457,000 198,000 80,500 SUMMARY. Annual salaries. Number of officers. Total. Average. Federal reserve bank . . .. 22' $155,700 $7,078 Bank A 37 457,000 12,351 BankB... . . 18 198,000 11,000 BankC 8 80,500 10,063 Digitized for FRASE8R5 227°—22- -29 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

438 REPORT OF THE FEDERAL RESERVE BOARD. Index of growth in number of officers and employees, in their aggregate salaries, and in business of the bank, [1915=1.] Assets and liabili- Personnel. ties. Volume of business. Year. Officers. O em ffi p ce lo rs y e a e n s d . E a a s r s n e i t n s. g F c re i e n r s d c o e u e r te v r la a e - l a D n m o i d s p a c e r o o k r p a u e e - n t n t - s m G et o e t l l n d e t - Number. Salaries. Number. Salaries. tion. tions. fund. 1915 1 1 1 1 1 1 1 1 1916 1 1 1 1 4 2 3 3 1917 3 2 5 3 14 7 18 10 1918 4 2 10 6 27 15 98 17 1919 4 2 14 8 41 18 194 30 1920 5 3 22 14 42 17 224 36 Number of officers and employees. Dec.31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent 1 1 1 1 1 1 1 Governor 1 1 1 1 1 1 1 Deputy governor.... 1 1 1 1 1 1 1 Other officers 1 1 7 12 13 17 18 Total officers 4 4 10 15 16 20 21 Employees: Banking department 8 12 43 117 225 284 256 Bookkeeping department 5 6 7 11 23 54 59 Transit department 14 24 50 60 114 265 243 Federal reserve agent's department 3 3 2 5 8 10 11 Auditing department 30 21 Fiscal agency department... 59 126 104 136 116 5 4 6 51 51 84 Total employees 35 49 167 370 525 831 790 Total officers and employees 39 53 177 385 541 851 811 Average number of employees per officer 9 12 17 25 33 42 38 Salaries of officers and employees. Dec. 31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent .. $10,000 $10,000 $10,000 $10,000 $15,000 $16,000 $18,000 Governor 20,000 20,000 20,000 20,000 20,000 20,000 25,000 Deputy governor 7,500 7,500 7,500 9,000 8,400 10,800 12,000 Otner officers. . ... ...... 6,000 6,000 28,000 46,500 57,900 83,400 93,700 Total (bonus excluded)... 43,500 43,500 65,500 85,500 101,300 130,200 148,700 Employees: Banking department 12,820 17,180 44,500 123,292 261,850 423,270 364,370 Bookkeeping department... 6,200 6,260 5,900 12,000 ' 25,650 67,420 87,960 Transit department 9,660 16,140 34,620 57,540 72,350 227,230 269,760 Federal reserve agents' department 5,900 5,900 3,340 7,920 10,950 2£>980 31,060 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 439 Salaries of officers and employees—Continued. Dec. 31— Julyl, 1921. 1915 1916 1917 1918 1919 1920 Employees—Continued. Auditing department $48,560 $36,180 Fiscal agency department.. $65,840 $132,620 $156,700 163,380 157,600 General $2,820 $2,820 4,920 47,000 24,100 53,380 100,764 Total (bonus excluded)... 37,400 48,300 159,120 380,372 551,600 1,009,220 1,047,694 Total officers and employees 80,900 91,800 224,620 465,872 652,900 1,139,420 1,196,394 Average salary payable to— All officers 10,875 10,875 6,550 5,700 6,331 6,510 7,081 Officers other than Federal reserve agent and chairman, governor and deputy governors 6,000 6,000 4,000 3,875 4,454 4,906 5,206 Employees 1,068 953 1,028 1,051 1,214 1,326 Extra compensation paid by the Federal Reserve Bank of St. Louis for the years 1917-1921. [Salaries shown are annual salaries. Per cent of extra compensation based on actual salary received during period.) Per Per Jan. 1 to Dec. 31, 1917: cent. Jan. 1 to Dec. 31, 1919: cent. Up to $1,500 15 Up to $1,500 20- $1,501 to $6,000 10 $1,501 to $3,000 15 Jan. 1 to Dec. 31,1918: $3,001 to $5,000 10 Up to $1,500 20 Jan. 1 to Dec. 31, 1920: $1,501 to $3,000 15 Up to $1,500 20 $3,001 to $5,000 10 $1,501 to $3,000 15 $3,001 to $5,000 10 Principal asset and liability items at end of year. T r o es ta e l r v c e a s s . h Bills d ed is . count- Bills bought. Tota a l s s e e a t r s n . ing 1915 $18,108,000 $1,255,000 $661,000 $3,178,000 1916 28,730,000 1,301,000 7,037,000 12,008,000 1917 . 59,136,000 34,027,000 7,363,000 45,067,000 1918 89,257,000 70,703,000 7,293,000 85,717 000 1919 96,928,000 77,680,000 32,804,000 128,875,000 1920 88,876,000 114,932,000 1,200,000 133,308,000 _ Index of growth 1915-1920 (1915=1) 5 2 42 C s a u p r it p a l l u a s. nd Gross deposits. Fe n d o e te ra s l i r n e s c e ir r - ve culation. 1915.. $2,781,000 $14,105,000 $8,133,000 1916 2,800,000 45,855,000 16,459,000 1917. 3,475,000 97,677,000 59 923 000 1918 4,601,000 103,251,000 120,037,000 1919.. 7,788,000 131,964,000 145 298 000 1920 12,711,000 104,269,000 135,785,000 Index of growth 1915-1920 (1915=1) 5 7 17 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

440 REPORT OF THE FEDERAL RESERVE BOARD. Volume of business transacted during the year. disc B o i u ll n s ted. Bills bought. Un s i b e t c o e u u d r g i S t h i t t e a . s tes To a ta m n l d a d r o i k s p e c e t o n unt operations. 1915 $6,317,000 $1,801,000 $970,000 $11,353,000 1916 8,843,000 20,681,000 2,419,000 35,562,000 1917 . .. ... 181,118,000 22,788,000 1650,000 205,574,000 1918 1,085,137,000 26,096,000 6,568,000 1,117,801,000 1919 2,100,631,000 87,503,000 18,788,000 2,206,922,000 1920 .. 2,438,041,000 36,019,000 74,488,000 2,548,548,000 Index of growth 1915-1920 (1915=1) 386 20 77 224 Federal reserve Federal reserve Currency Currency notes issued notes redeemed received from paid out to by agent. by agent. m ot e h m er b b er a n a k n s d . m ot e h m er b b er a n a k n s d . 1915 2 $9,197,000 *$247,000 1916 11,811,000 3,871,000 1917 55,260,000 10,287,000 1918 . 102,605,000 35,348,000 1919 134,025,000 98,426,000 $288,738,000 $205,447,000 1920 . 106,470,000 115,798,000 443,427,000 370,335,000 __ Index of growth 1915-1920 (1915=1) 12 Transactions Number of Amount of through gold checks cleared. checks cleared. settlement fund. 1915 3 $360,325,000 1916 1,124,901,000 1917 2,648,000 $1,206,631,000 3,620,747,000 1918 6,105,000 1,799,306,000 6,109,256,000 1919 L 19,414,000 6,110,660,000 10,847,104,000 1920 31,691,000 7,644,600,000 13,094,883,000 Index of growth 1915-1920 (1915= 1) 36 i Exclusive of certificates of indebtedness. « Nov. 16, 1914, to Dec. 31, 1915. » Represents daily average for the period May 20, 1915 (date of first settlement), to Dec. 31, 1915, multiplied by 365. Expenses of the Federal Reserve Bank of St. Louis. Nov. 16 to Dec. 1915 1916 1917 1918 1919 1920 31,1914. Expenses of operation: Salaries- Bank officers $6,687 $51,858 $46,699 $49,413 $72,573 $95,040 $126,916 Clerical staff 4,056 35,164 37,264 71,104 206,763 400,860 747,312 Special officers and watchmen 148 1,650 1,620 2,127 7,218 13,408 22,984 Allother 158 1,185 1,200 2,095 5,212 20,289 30,693 Federal advisory council, governors' and Federal reserve agents' conferences 1,503 1,998 1,116 1,134 1,932 1,759 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life insurance and fidelity bond premiums 2,006 9,767 9,352 12,493 21,737 53,541 65,986 Assessments for Federal Reserve Board expenses, 115,426 9,750 12,733 18,397 24,981 26,618 701 3,220 Telephone and telegraph— 75 i,430 i,i32 1,831 7,098 19,157 51,429 1 Total assessment for Federal Reserve Board expenses to Dec. 31,1915. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 441 Expenses of the Federal Reserve Bank of St. Louis—Continued. Nov. 16 • to Dec. 1915 1916 1917 1918 1919 1920 31, 1914. Expenses of operation—Contd. Rent, light, heat and power. $1,784 $16,725 $14,900 $19,640 $25,739 $37,965 $55,885 Printing and stationery 3,780 4,833 5,278 4,945 25,386 34,676 76,743 All other, including postage and insur&$efc on mail, security &«& currency shipments, repairs and alterations, etc 17,026 6> 621 12,007 35,133 80,789 131,215 209,770 Total expenses of operation 25,720 146,162 141,200 212,630 472,046 833,765 1,419,315 Federal Reserve currency (original cost including snipping charges) 12,120 10,720 49,363 147,347 188,617 '238,051 Miscellaneous charges, account 1,656 1,229 4,597 20,313 32,988 Taxes on Federal reserve bank note circulation 58,300 58,000 Furniture and equipment 3,355 7,728 102,031 73,798 176,102 Bank premises Total expenses 25, 720 158,282 156,931 270,950 726,021 1,174,793 1,924,456 »Includes $5,854 expenses prior to Nov. 16,1914. Current expenses of the Little Rock branch of the Federal Reserve Bank of St. Louis. 19191 1920 Salaries: Bank officers $10,719 $10,796 Clerical staff 29,256 65,858 Special officers and watchmen 2,022 3,324 All other 2,493 3,915 Directors' meetings, legal Tees, officers' and clerks' traveling expenses, life-insurance and fidelity-bond premiums 5,200 6,178 Taxes and fire insurance 145 263 Telephone and telegraph 1,469 7,420 Rent, light, heat, and power 3,721 4,648 Printing and stationery 6,674 11,051 Furniture and eauipnieht 23,488 X% 510 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 13,776 24,497 Total current expenses. 98,963 157,460 1 Branch opened for business Jan. 6,1919. Current expenses of the Louisville branch of the Federal Reserve Bank of St. Louis. 19181 1919 1920 Salaries: Bank officers $8,190 $9,960 $14,125 Clerical staff .- 16,151 40,482 82,307 Special officers and watchmen 1,316 3,279 Allother , 586 1,379 Directors' meetings, legal fees, officers' and clerks' traveling expenses, lifeinsurance and fidelity-bond premiums 1,3 5,292 8,365 Taxes and fire insurance 168 2,335 Telephone and telegraph 1,383 2,101 7,104 Rent, light, heat, and power 2,109 2,599 4,297 Printing and stationery 2,727 3,728 11,310 Furniture and equipment 11,628 5,691 22,178 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 19,991 28,553 Total current expenses.. 53,799 92,707 187,351 * Branch opened for business Dec. 3,1917. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

442 REPORT OF THE FEDERAL RESERVE BOARD. Current expenses of the Memphis branch of the Federal Reserve Bank of St. Louis. 19181 1919 1920 Salaries: Bank officers $2,983 $11,687 $14,025 Clerical staff 13,337 57,882 102,683 Special officers and watchmen , 772 3,441 4,423 All other 496 3,642 6,854 Directors' meetings, legal fees, officers7 and clerks'traveling expenses,lifeinsurance and fidelity-bond premiums 1,093 7,166 9,118 Taxes and fire insurance 184 225 Telephone and telegraph 216 2,413 8,645 Rent, light, heat, and power 1,964 8,453 13,689 Printing and stationery , 4,681 7,441 11,564 Furniture and equipment 7,380 11,534 52,975 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 14,562 23,062 51,374 Total current expenses.. 47,484 136,905 275,575 i Branch opened for business Sept. 3,1918. EXHIBIT D, PART 9. FEDERAL RESERVE BANK OF MINNEAPOLIS. Comparison of salaries paid to officers of the Federal reserve bank as of Oct. 1, 1921, with salaries paid to officers of three of the large national banks in Minneapolis as of Sept. 6, 1921. Annual salary. Governor $16,000 Chairman and Federal reserve agent 15,000 Deputy governor 13,000 Do. 6,000 Assistant Federal reserve agent 6,000 Controller.. 6,000 Cashier 5,000 Assistant cashier „ 4, 800 Assistant Federal reserve agent 4, 500 Assistant cashier 4,000 Do 3, 250 Do 3,000 Manager, Helena branch 6,000 Cashier, Helena branch 4,000 Assistant Federal reserve agent, Helena branch 3, 600 Assistant cashier, Helena branch 3, 500 Total.. • 103,650 National banks in Minneapolis. Annual salary. Position. Bank A. Bank B. Bank C. Chairman executive committee. .. . .. .... $25,000 Chairman board of directors 25,000 President. - 40,000 $45,000 $21,000 Vice president 19,000 25,000 16,000 Do.. 17,000 21,500 6,500 Do . . .. . . .. 16,000 16,000 Do 13,000 16,000 Do . . . .. 10,500 13,000 Do 10,500 Do 9,000 Do 6,800 Do . 2,000 Other officers 35,000 60,700 29,700 Total 228,800 197,200 73,200 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 443 National bank in Minneapolis—Continued. SUMMARY. Annual salaries. Number of officers. Total. Average. Federal reserve bank 16 $103,650 $6,478 Bank A . 18 228,800 12,711 BankB 18 197,200 10,955 BankC. . . 11 73,200 6,654 Index of growth in number of officers and employees in their aggregate salaries, and in business of the bank. [1915=1.1 Assets and Personnel. liabilities. Volume of business. Year. Officers. O em ffi p ce lo rs y e a e n s d . E a a s r s n e i t n s. g c n F r u o e e l t s a d e e t e r i c r v o i a e r n l - . a D m n o i d s p a c e o r o k r p u a e e - n t n t - G tl f o e u l m d n d e s . e n t t - Number. Salaries. Number. Salaries. tions. 1915 1 1 1 1 1 1 1 1 1916 1 1 3 2 3 1 3 6 1917 2 2 6 3 6 4 9 37 1918 3 2 13 5 15 7 52 78 1919 2 2 14 7 24 7 84 103 1920 3 3 23 13 23 6 107 111 Number of officers and employees. Dec.31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent 1 1 1 1 1 1 1 Governor 1 1 1 1 1 1 1 Deputy governor .... 1 1 2 2 Other officers 1 1 3 5 4 6 9 Total officers 3 3 5 8 7 10 13 Employees: Banking department 10 14 30 71 88 128 168 Bookkeeping department.. . 3 6 6 12 13 13 20 Transit department 1 29 37 78 101 192 181 Federal reserve agents' department 3 2 2. 3 14 18 19 Auditing department 11 13 Fiscal agency department.. 47 95 64 87 65 General ... 27 Total employees 17 51 122 259 280 449 493 Total officers and employees 20 54 127 267 287 459 506 Average number of employees per officer 6 17 24 32 40 45 38 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

444 REPORT OF THE FEDERAL RESERVE BOARD. Salaries of officers and employees. Dec 31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent $7,500 $a,ooo $10,000 $10,000 $12,000 $15,000 $15,000 D G e o p ve u r t n y o g r overnors 15,000 15,000 18,000 1 6 8 , , 0 0 0 0 0 0 1 7 2 , , 5 0 0 0 0 0 i1 1 7 6 , , 5 0 0 0 0 0 11 1 8 6 , , 0 0 0 0 0 0 Other officers 3,000 3,500 12,500 16,210 10,400 23,900 39,550 Total (bonus excluded)... 25,500 27,500 40,500 50,210 41,900 72,400 88,550 Employees: Banking department 11,940 15,850 29,120 56,629 104,380 166,880 207,308 Bookkeeping department... 2,460 5,540 6,040 6,078 14,560 18,600 28,244 Transit department 2,000 19, 460 24,040 33,243 85,860 202,836 199,408 Federal reserve agent's department 5,520 4,080 4,580 5,636 28,300 40,320 46,860 Auditing department 16,020 20,900 Fiscal agency department.. 51,180 65, 721 72,360 121,816 91,3a6 General 40, 724 Total (bonus excluded)... 21,920 44,930 114,960 167,307 305,460 566,472 634,780 Total officers and employees: 47,420 72,430 155,460 217,517 347,360 638,872 723,330 Average salary payable to: All officers 8,500 9,166 8,100 6,275 5,986 7,240 6,812 Officers other than chairman and Federal reserve agent, governor, and deputy governors 3,000 3,500 4,167 3,242 2,600 3,983 4,394 Employees 1,289 881 942 646 1,091 1,262 1,288 -Two deputy governors. Extra compensation paid by the Federal Reserve Bank of Minneapolis for the years 1919- 1921. [Salaries shown are annual salaries. Per cent of extra compensation based on actual salary received during period.] Jan. 1 to Dec. 31, 1919: Per cent. Up to $1,500 20 $1,501 to $3,000 15 $3,001 to $5,000 10 Jan. 1 to Dec. 31, 1920: Up to $1,500 25 $1,501 to $3,000 20 $3,001 to $6,000 15 Jan. 1 to June 30, 1921: Up to $1,500 15 $1,501 to $6,000 10 Principal asset and liability items at end of year. Total cash Bills dis- Total earning reserves. counted. Bills bought. assets. 1915 $21,104,000 $1,299,000 $478,000 $3,942,000 1916 36,503,000 1,985,000 6,200,000 11,896,000 1917 70,748,000 14,031,000 7,167,000 24,451,000 1918 93,220,000 36,672,000 17,994,000 59,933,000 1919 52,811,000 73,857,000 12,599,000 95,052,000 1920 46,928,000 81,654,000 1,313,000 91,563,000 Index o 1 growth 1915-1920 (1915= 1) 2 63 3 23 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 445 Principal asset and liability items at end of year—Continued. Ca s p u i r t p a l l u a s. nd de G p r o o s s i s ts. Fe n d o c e t u e r l a s a l t i n r io e s n c e i . r r - ve 1915 $2,547,000 $13,867,000 $13,182,000 1916 . 2,609,000 34,716,000 18,296,000 1917 2,658,000 59,946,000 49,414,000 1918 .... 3,657,000 61,384,000 96,571,000 1919 6,643,000 70,865,000 87,187,000 1920 10,441,000 63,100,000 79,498,000 Index oi growth 1915-1920 (1915= 1) 4 5 6 Volume of business transacted during the year. United States Total discount disc B o i u l n ls ted. bo B u i g ll h s t. se b c o u u r g it h ie t. s an m d a r o k p e e t noperations. 1915 $5,207,000 $1,455,000 $1,329,000 $10,387,000 1916 6,474,000 13,539,000 2,553,000 26,301,000 1917 80,155,000 16,397,000 1616,000 97,345,000 1918 . 433,793,000 13,902,000 96,090,000 543,785,000 1919 661,521,000 108,714,000 102,215,000 872,450,000 1920 953,392,000 18,059,000 141,696,000 1,113,147,000 Index of growth 1915-1920 (1915=1) 183 12 107 107 Fe n d o b e t y e r a s a l g i r s e e s n s u t e e . r d ve n F o e t d b e e y s r a r a l e g d r e e e n s e t e m . rv e e d r m o e t c e C h e m e i u v r r b e r b e e d r a n n f c a r y k n o s d m . C m o u t e r h r m e o e r u n b t c e b y r t a o n a p k n a s d i . d 1915 2$14,002,000 2$2,000 1916 9,880,000 3,396,000 1917 42,230,000 11,708,000 1918 57,140,000 9,422,000 1919 39,990,000 50,272,000 $57,347,000 $52,826,000 1920 39,450,000 46,507,000 64,860,000 78,995,000 Index of growth 1915-1920 (1915=1).... 3 23,254 Number Amount Transactions of checks of checks through gold cleared. cleared. settlement fund 1915 a $39,789,000 1916 238,091,000 1917 4,386,000 $1,097,635,000 1,476,679,000 1918 6,048,000 2,112,894,000 3,114,805,000 1919 10,748,000 2,770,009,000 4,083,210,000 1920 21,589,000 3,908,858,000 4,413,640,000 Index oi growth 1915-1920 (1915=1) 111 'Exclusive of certificates of indebtedness. * Nov. 16,1914, to Dec. 31,1915. »Represents daily average for the period May 20,1915 (date of first settlement) to Deo. 31,1915, multiplied Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

446 REPORT OF THE FEDERAL RESERVE BOARD. Expenses of the Federal Reserve Bank of Minneapolis. Nov. 16 to Dec. 1915 1916 1917 1918 1919 1920 31, 1914. Expenses of operation: Salaries— Bank officers S3,419 $27, 542 $26,625 $37,101 $49,125 $61.014 $77,637 Clerical staff 1,182 20,745 29,277 55,725 123,402 208', 171 363,724 Special officers and watchmen 197 1,311 1,667 8,726 10,766 All other 53 78 816 120 3,530 23,686 Federal advisory council, 1,799 governors' and Federal reserve agents' conferences 329 2,552 888 1,608 1,698 1,372 Directors' meetings, legal foes, officers' and clerks' 2,039 traveling expenses, lifeinsurance and fidelitybond premiums 2,998 9,045 9,952 10,773 17,512 24,418 47,285 Assessments for Federal Reserve Board expenses.. 1 13,286 8,962 10,196 14,117 20,209 22,520 Taxes and fire insurance 134 167 851 1,186 Telephone and telegraph 119 817 867 1,778 5,406 4,975 16,612 Rent, light,,heat,and power. 780 5,068 6,955 8,600 11,298 14,295 21,760 Printing and stationery 901 3,808 6,198 11,596 18,361 25,228 62,488 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 214,874 4,751 12,578 27,128 67,794 61,263 149,967 Total expenses of operation 24,852 88,900 105,355 166,462 308,910 434,378 799,003 Federal reserve currency (original cost including shipping 18,701 9,866 42,381 114,287 56,273 62,627 Miscellaneous charges, account note issues 1,355 10,734 17,002 15,959 Taxes on Federal reserve bank 24,912 36,792 Furniture and equipment. 5,353 44,464 59,977 23,926 100,817 Bank premises Total expenses 24,852 107,601 120,574 254,662 493,908 556,491 1,015,19S 1 Total assessment for Federal Reserve Board expenses to Dec. 31, 1915. 2 Includes $13,205 expenses prior to Nov. 16, 1914. EXHIBIT D, PART 10. FEDERAL RESERVE BANK OP KANSAS CITY. Comparison of salaries paid to officers of the Federal reserve bank as of Oct. 1, 1921, with salaries paid to officers of three large national banks in Kansas City as of Sept. 6>, 1921. Annual salary. Governor $20, 000 Chairman and Federal reserve agent 15,000 Deputy governor 12, 000 Cashier 8, 000 Auditor 7, 200 Assistant Federal reserve agent and secretary 6, 600 Assistant cashier 6, 300 Do 5, 400 Do 4, 800 Do. 4, 800 Assistant auditor 4, 500 Assistant cashier 4, 200 Do 4, 000 Do 4, 000 Assistant auditor 3, 600 Manager Omaha branch 7, 500 Cashier Omaha branch 5,400 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDEKAL RESERVE BAHKS. 447 Annual salary. Assistant cashier Omaha branch $3, 720 Do 3, 600 Do 3, 300 Manager Denver branch 7, 500 Cashier Denver branch 4, 000 Assistant cashier Denver branch 3, 300 Assistant Federal reserve agent Denver branch 2,400 Manager Oklahoma City branch 5,400 Cashier Oklahoma City branch 3, 300 Total 159,820 National banks in Kansas City. Annual salary. Position. Bank A. Bank B. Bank C. President $25,000 $26,000 $25,000 15,000 15,000 15.000 Do . 15,000 7,500 5^500 Do 10,000 7 500 Do 10,000 Do 10,000 Other officers 16,600 17,800 16,300 Total 101,600 73,800 61,800 SUMMARY. Annual salaries. Number ol officers. Total. Average. Federal reserve bank $159,820 $6,147 BankA 101,600 11,289 BankB 73,800 9,225 BankC 61,800 10,300 Index of growth in number of officers and employees, in their aggregate ies, and in business of the bank. [1915=1.] Personnel. Assets i t a i n e d s. liabil- Volume of business. Year. Officers. Offic p e l r o s y a e n e d s . em- Earning F re e s d e e r r v a e l a D n i d s c o o p u e n n t - Gold set- Number. Salaries. Number. Salaries. assets. c n u o l t a e t i c o ir n - . m o ti p a o e r n k ra s e . - t tl f e u m nd e . nt 1915 . .. 1 1 1 1 1 1 1 1 1916 1 1 1 1 2 2 2 5 1917 ... 2 2 4 3 7 5 16 17 1918 5 4 12 10 13 11 53 32 1919 6 4 15 14 21 10 100 50 1920 7 5 22 20 21 11 113 70 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 REPORT OF THE FEDERAL RESERVE BOARD. Number of officers and employees. Dec. 31— 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent 1 1 1 1 1 1 1 Govern or Deputy governor 1 1 1 1 Other officers 1 2 3 11 15 19 21 Total officers 3 4 6 14 17 22 24 Employees: Bookkeeping department 6 4 4 16 18 33 36 Transit department 16 26 26 139 199 315 333 Federal-reserve agent's department 3 3 5 5 6 13 15 33 44 Fiscal agency department 85 201 i57 206 171 General 12 15 27 105 186 241 274 Total employees 37 48 147 466 566 841 873 Total officers and employees 40 52 153 480 583 863 897 Average number of employees per officer 12 12 24 33 33 38 36 Salaries of officers and employees. Dec. 31— July 1, 1921. 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent. .* $7,500 $7, 500 $7,500 $9,000 $12,000 $15,000 $15,000 Governor 7,500 10,000 12,500 15,000 18,000 20,000 20,000 Deput3^ governor. 6,000 9,000 10,000 12,000 Other officers 6,000 8,800 11,400 51,000 64,400 68,473 103,820 Total (bonus excluded)... 21,000 26,300 37,400 84,000 94,400 113,473 150,820 Employees: Bookkeeping department... 6,120 4,500 5,340 20,180 26,860 44,321 58,560 Transit; department 10,980 18,780 22,960 108,360 206,160 330,153 415,540 Federal reserve agent department 4,380 7,680 5,760 9,100 28,140 35,280 Auditing department 4,080 46,442 81,080 Fiscal agency department.. 93,190 219,810 194, 890 277,140 254,580 General *i3,"460" 18,460 27,020 122,880 239,060 290,318 413,440 Total (bonus excluded)... 34,640 46,120 156,190 476,990 676,070 1,016,514 1,258,480 Total officers and em- 55,640 72,420 193,590 560,990 770,470 1,129,987 Average salary payable to— All officers 7,000 6,575 6,233 6,000 5,553 5,158 Officers other than chairman and Federal reserve agent, governor, and deputy governor 6,000 4,400 3,800 4,636 4,293 3,604 4,944 Employees 936 961 1,063 1,024 1,194 1,209 1,442 Extra compensation paid by the Federal Reserve Bank of Kansas City for the years 1917- 1921. [Salaries shown are annual salaries. Per cent of extra compensation based on actual salary received during period.] Jan. 1 to Dec. 31, 1917: Percent. Jan. 1 to Dec. 31, 1920: Per cent. Up to $6,000 10 Up to $1,500 20 Jan. 1 to Dec. 31, 1918: $1,501 to $3,000.... 15 Up to $1,500 20 $3,001 to $5,000.... 10 $1,501 to $3,000 15 Jan. 1 to June 30, 1921: $3,001 to $5,000 10 Up to $1,500 16 Jan. 1 to Dec. 31, 1919: $1,501 to $3,000.... 12 Up to $1,500 20 $3,001 to $5,000.... 8 $1,501 to $3,000 15 $3,001 to $5,000 10 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 449 Principal asset and liability items at end of year. Total cash Bills dis- Bills bought. Total earning reserves. counted. assets. 1915 $20,071,000 $3,581,000 $429,000 $6,418,000 1916 . ... 47,391,000 515,000 3,945,000 14,080,000 1917 ! 84,189,000 35,055,000 1,338,000 47,026,000 1918. . 81,858,000 57,454,000 14,203,000 84,901,000 1919 76, 576,000 93,380,000 18,692,000 136,007,000 1920 76,497,000 110,341,000 2,171,000 134,201,000 Index of growth, 1915-1920 (1915=1).... 4 31 5 21 Capital and Federal reserve Gross deposits. notes in circusurplus. . lation. 1915 $3,038,000 $14,788,000 $10,478,000 1916 3,074,000 54,806,000 21,735,000 1917 3,397,000 92,458,000 55,373,000 1918 4,870,000 102,680,000 112,445,000 1919 10,132,000 163,678,000 104,089,000 1920 13,614,000 127,536,000 111,578,000 Index of growth, 1915-1920 (1915=1) 4 9 11 Volume of business transacted during the year. United States Total discount Bills dis- Bills bought. securities and counted. bought. open-market operations. 1915 $10,875,000 $1, 788,000 $2,152,000 $16,065,000 1916 . 6,817,000 8,191,000 8,362,000 25,367,000 1917 237,691,000 17, 561,000 11,187,000 256,870,000 1918 833,521,000 14,690,000 11,131,000 859,342,000 1919 1, 555,597,000 26,086,000 31,792,000 1,613,475,000 1920 1,667,943,000 17,174,000 128,079,000 1,813,196,000 Index of growth, 1915-1920 (1915=1).... 153 10 60 r»3 Fe n d o b e t y e r a s a l g is r e s e n u s t e e . d rve Fe d d e n e e a o r m a g te l e e s n r d r e t . e s b - e y rve m o C c t e e u h i m r e v r r e e b d n b e r c a f y n r a o k r n m e s d - . C o o u t u h r b t r e e e t r r n o b c a m y a n n e d p k m a s i - . d 1915 2 $11,330,000 2 $330,000 1916 16,090,000 4,855,000 1917 56,008,000 20,360,000 1918 79,900,000 17,466,000 1919 57,900,000 67,662,000 $133,234,000 $103,168,000 1920 . 72,570,000 65,000,000 184,098,000 165,849,000 Index of growth, 1915-1920 (1915=1).. 6 197 Number Amount Transactions of checks of checks through gold cleared. cleared. settlement fund. 1915 8 $147,960,000 1916 ... 676,433,000 1917 4,559,000 $3,537, 781,000 2,574,700,000 1918 ... 12,055,000 7,552,840,000 4,699,478,000 1919 30, 801,000 10,112,923,000 7,387,308,000 1920 54, 756,000 12,669, 535,000 10,429,318,000 Index of growth, 1915-1920(1915=1) 70 1 Exclusive of certificates of indebtedness. *Nov. 16,1914, to Dec. 31,1915. 8 Represents daily average for the period May 20,1915 (date of first settlement), to Dec. 31, 1915, multiplied by 365. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

450 REPORT OF THE FEDERAL RESERVE BOARD. Expenses of the Federal Reserve Bank of Kansas City, Nov. 16 to Dec. 1915 1916 1917 1918 1919 1920 31,1914. Expenses of operation: Salaries- Bank officers $3,321 $25,500 $25,973 $37,782 $68,045 $91,604 $116,274 Clerical staff 3,234 31,681 40,223 67,404 188,680 453,258 794,286 Special officers and watchmen 135 805 1,419 5,609 14,423 25,275 Allother 138 2,319 1,599 1,068 784 11,698 35,694 Federal advisory council, governors' and Federal reserve agents'conferences. 1,974 1,035 1,028 1,159 1,077 Directors' meetings, legal 256 1,742 fees, officers' and clerks' traveling expenses, lifeinsurance and fidelitybond premiums 13,773 12,257 16,202 28,144 54,865 79,367 Assessments for Federal Re- 2,056 serve Board expenses 1 15,808 10,575 13,118 17,998 28,151 34,221 Taxes and fire insurance 169 646 4,217 Telephone and telegraph... 283 896 858 i,46i 6,936 15,967 42,937 Rent, light, heat, and power. 1,294 9,486 9,618 11,939 23,786 36,366 47,046 Printing and stationery 1,451 7,721 4,361 10,447 25,370 49,782 94,787 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 215,996 13,355 16,399 45,987 120,410 160,701 238,935 Total expenses of operation 28,164 122,281 124,642 207,802 486,959 918,620 1,514,116 Federal reserve currency (original cost, including shipping charges). 13,805 20,436 91,187 98,542 131,339 97,477 Miscellaneous charges, account note issues 20,886 57,017 16,493 33,905 Taxes on Federal reserve bank note circulation 5,791 65,327 83,422 Furniture and equipment.... 5,000 4,350 40,794 46,710 54,290 126,707 Bank premises 2,333 Total expenses 28,164 141,086 155,219 360,669 689,228 1,186,069 1,857,960 1 Total assessment for Federal Reserve Board expenses to Dec. 31, 1915. 1 Includes $14,612 expenses prior to Nov. 16, 1914. Current expenses of the Denver branch of the Federal Reserve Bank of Kansas City. 1918 i 1919 1920 Salaries: Bank officers $6,671 $9,135 $12,282 Clerical staff 20,766 53,546 93,560 Special officers and watchmen 2,236 3,283 5,370 Allother 1,323 3,147 Directors' meetings, legal fees, officers' and clerks' traveling expenses, lifeinsurance and fidelity-bond premiums 3,914 6,726 C,642 Taxes and fire insurance 77 83 233 Telephone and telegraph , 810 1,266 2,335 Rent, light, heat, and power 2,700 4,800 5,592 Printing and stationery 4,825 7,132 12,618 Furniture and equipment 11,430 8,719 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc r 11,633 23,024 27,043 Total current expenses.. 65,062 118,556 180,541 1 Branch opened for business Jan. 14,1918. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 451 Current expenses of the Oklahoma City branch of the Federal Reserve Bank of Kansas City, 1920.1 Salaries: Bank officers $5, 077 Clerical staff 52, 048 Special officers and watchmen 388 Allother 2,931 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life insurance, and fidelity bond premiums 9, 907 Taxes and fire insurance 242 Telephone and telegraph 4, 712 Rent, light, heat, and power 3, 050 Printing and stationery 9, 361 Furniture and equipment 52, 487 All other, including postage and insurance on mail, security and currency shipments, repairs, and alterations, etc 16, 330 Total current expenses 156, 533 1 Branch opened for business Aug. 2, 1920. Current expenses of the Omaha Branch of the Federal Reserve Bank of Kansas City. 1918 1919 1920 Salaries: Bank officers $2,567 $9,800 $13, 781 $16,333 Clerical staff 4,395 25,088 83,756 179,452 Special officers and watchmen 260 814 3,559 6,257 Dire A ct l o l r o s t 7 h e m r eetings, legal fees, officers' and clerks' traveling 233 3,294 2,577 8,221 expenses, life insurance and fidelity bond premiums 683 3,183 9,545 14,973 Taxes and fire insurance 92 284 2,979 Telephone and telegraph 190 1, 1,990 9,747 Rent, light, heat, and power 2,001 4,549 Printing and stationery 1,054 6,066 12,925 21,312 Furniture and equipment 104 10, 084 17,698 28,267 Bank premises All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc .... 3,956 13,004 29,444 53,702 Total current expenses. 15,443 78, 847 182, 468 345,792 i Branch opened for business Sept. 4, 1917. EXHIBIT D, PART 11. FEDERAL RESERVE BANK OF DALLAS. Comparison of salaries paid to officers of the Federal reserve bank as of Oct. 1, 1921, with salaries paid to officers of three of the large national banks in Dallas as of Sept. 6,1921. Annual salary. Governor $18, 000 Chairman and Federal reserve agent 18, 000 Acting deputy governor 7, 500 Cashier 9, 000 Assistant Federal reserve agent 6,000 Assistant cashier 6, 000 General auditor 5, 000 Assistant cashier 4 500 ? Legal counsel 4, 200 Assistant cashier 4,200 Do ...] 4^ 200 Assistant general auditor 3, 600 Assistant cashier 3^ 600 Do 3, 600 Do 3, 300 Legal counsel 1,200 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 REPORT OF THE FEDERAL RESERVE BOARD. Annual salary. Manager, El Paso branch $6, 000 Cashier, El Paso branch 3, 600 Assistant cashier, El Paso branch 2,400 Assistant Federal reserve agent and auditor, El Paso branch 2, 700 Manager, Houston branch 6,000 Cashier, Houston branch 4, 000 Assistant cashier, Houston branch 2, 400 Assistant Federal reserve agent and auditor, Houston branch 3, 300 Total 132, 300 National banks in Dallas. Annual salary. Position. Bank A. Bank B. Bank C. Chairman $6,000 President.. $15,000 20,000 Vice president 25,000 $25,000 12,500 Do . 15,000 12,500 10,000 Do 15,000 7,000 9,000 Do 12,500 7,000 Do 6,000 6,000 Do 6,000 6,000 Do 6,000 Other officers 52,800 40,000 27,600 Total 153,300 103,500 85,100 SUMMARY. Annual salaries. Number of officers. Total. Average. Federal reserve bank . 24 $132,300 $5,512 Bank A 16 153,300 9,581 Bank B . 14 103, 500 7,393 Bank C 9 85,100 9,456 Index of growth in number of officers and employees, in their aggregate salaries, and in business of the bank. [1915=1.] Assets and Personnel. liabilities. Volume of business. Year. Numb O e f r f . ice S rs a . laries. Num O e b m ff e i p c r l . e o rs y S e a a e n l s a d . ries. E a a s r s n e i t n s. g c n F r u o e e l s t a d e e t e r i c v r o i a e r n l - . a D n m o t i d i s p a o c o e r n o k r p s a u e e . - n t n t - s m f G e u t e n o tl n l d e d t . - 1915 1 1 1 1 1 1 1 1 1916 1 1 2 1 1 2 1 3 1917 2 1 5 3 5 3 2 12 1918 3 2 13 8 10 4 23 20 1919 4 3 16 10 13 5 45 44 1920 5 4 20 13 14 5 53 63 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 453 Number of officers and employees. Dec.31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent 1 1 1 1 1 1 1 Governor 1 1 1 1 1 1 1 Deputy governor 1 1 1 1 1 1 Other officers 1 2 3 7 14 16 21 Total officers -. 4 5 6 10 17 19 23 Employees: Banking department 11 12 31 113 165 120 124 Bookkeeping department 2 5 7 13 23 32 27 Transit department 2 27 39 86 173 189 168 Federal reserve agent's department 2 2 2 5 16 20 21 Auditing department 36 34 Fiscal agency department 75 162 89 78 58 General 10 12 10 14 22 119 200 Total employees 27 58 164 393 488 594 632 Total officers and employees 31 63 170 403 505 613 655 Average number of employees per officer 7 12 27 39 29 31 27 Salaries of officers and employees. Dec. 31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent... $7,500 $9,000 $10,000 $10,000 $14,000 $18,000 $18,000 Governor 10,000 10,000 12,000 12,000 15,000 18,000 18,000 Deputy governor. 6,000 6,000 7,500 8,400 10,000 12,000 Other officers 5,000 9,000 12,200 29,800 52,800 64,000 88,800 Total (bonus excluded)... 28,500 I 34,000 I 41,700 60,200 91,800 112,000 124,800 Employees: Banking department 17,140 17,760 39,300 136,200 202,460 151,018 195,700 Bookkeeping department... 1,620 5,100 6,360 12,840 24,780 36,370 38,550 Transit department 2,100 20,760 33,140 74,400 178,000 226,973 222,490 Federal reserve agent's department 7,400 3,700 3,700 10,860 25,260 50,342 52,980 Auditing department 45,908 63,060 Fiscal agency department.. 60,690 191,104 118,260 120,475 90,480 General 9,060 11,6 7,580 10,960 21,000 123,704 251,330 Total (bonus excluded)... 37,320 59,000 150,770 436,364 569.760 I 754,790 914.590 Total officers and employees 65,820 93,000 192,470 496,564 661,560 866,790 1,039,390 Average salary payable to— All officers 7,125 6,950 6,020 5,400 5,895 5,426 Officers other than chairman and Federal reserve agent, governor, and deputy governor 5,000 4,500 4,066 4,256 3,771 4,000 4,229 Employees 1,382 1,017 919 1,110 1,168 1,270 1,447 Extra compensation paid by the Federal Reserve Bank of Dallas for the years 1917-1921. [Salaries shown are annual salaries. Per cent of extra compensation based on actual salary received during period.] Per Per Jan. 1 to Dec. 31, 1917: cent. Jan. 1 to Dec. 31, 1919: cent. Less than $1,500 15 Up to $1,500 20 $1,500 to $4,000 10 $1,501 to $3,000 15 Jan. 1 to Dec. 31, 1918: $3,001 to $5,400 10 Up to $1,500 20 Jan. l-'to June 30, 1920: $1,501 to $3,000 15 Up to $1,500 20 $3,001 to $5,000 10 $1,501 to $3,000 15 $3,001 to $5,000 10 85227°—22 80 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

454 REPORT OF THE FEDERAL RESERVE BOARD. Principal asset and liability items at end of year. T r o e t s a e l r v c e a s s . h B co il u ls n d te i d s . - Bills bought. Tota a l s s e e a t r s n . ing 1915 $24,875,000 $4,957,000 $5,899,000 1916 42,717,000 831,000 $2, 202, 000 8,193,000 1917 . 65, 292,000 8, 740,000 14,140,000 29,638,000 1918 38,768,000 45, 525, 000 2, [AS, 000 56,363,000 1919 . 59,411,000 58, 316,000 t>, 421,000 77,768,000 1920 45, 538,000 70,696,000 247, 000 83,222,000 Index of growth 1915-1920 (1915= 1) 2 14 14 Ca s p u i r t p a l l u a s. nd Gross deposits. Fed n e o ra te l s r e in serve circulation. 1915 $2,753,000 $14,975,000 $14,726,000 1916 2,696,000 33, 528,000 23, 589,000 1917 2,795,000 60, 530,000 46, 788,000 1918 3,746,000 50, 204,000 59,239,000 1919 6, 451,000 107,662,000 74,930,000 1920 .. 10,132,000 76, 460, 000 79,453,000 Index of growth 1915-1920 (1915—1) 4 5 5 Volume of business transacted during the year. Bills dis- United States Total discount counted. Bills bought. securities and open marbought. ket operations. 1915 $26,757,000 $870,000 $27,703,000 1916 18, 512, 000 $3, 543,000 4,163,000 26,371,000 1917 52, 052, 000 9, 744,000 11, 395,000 63, 883,000 1918 587,678,000 25,024,000 22,663,000 635, 747,000 1919 1, 224, 946, 000 12, 415,000 19,413,000 1, 256,774, 000 1920 1,280,178,000 8,348,000 176, 704,000 1, 465, 230, 000 Index of growth 1915-1920 (1915= 1) 48 203 53 Federal Federal Currency Currency reserve notes reserve notes received from paid out to issued by- redeemed by member and member and agents. agents. other banks. other banks. 1915 2 $16,180,000 2 $1,035,000 1916 22,079, 000 13,461,000 1917 40,086, 000 16,132,000 1918 40, 795, 000 28,017,000 1919 55, 730,000 37, 581,000 $75,788,666 $94,718,000 1920 69,245,000 63,135, 000 159, 382,000 126, 741, 000 Index of growth 1915-1920 (1915-1) 4 61 Transactions Number of Amount of through gold checks cleared. checks cleared. settlement fund. 1915 3 $112,672,000 1916 345, 940, 000 1917 3, 717,000 $990,202,000 1,300,820,000 1918 6, 323, 000 2,741, 224,000 2, 267, 990, 000 1919 14,149,000 4, 865,992,000 4,922,618,000 1920 29, 360, 000 7, 307, 341, 000 7,101,179,000 Index of growth 1915-1920 (1915— 1) . . . .. 63 1 Exclusive of certificates of indebtedness. 2 Nov. 16, 1914 to Dec. 31, 1915. 3 Represents daily average for the period May 20, 1915 (date of first settlement), to Dec. 31,1915, multi plied by 365. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 455 Expenses of the Federal Reserve Bank of Dallas. Nov. 16 to Dec. 1915 1916 1917 1918 1919 1920 31, 1914. Expenses of operation: Salaries- Bank officers $4,125 $32,373 $33,942 $43,220 $68,544 $87,212 $117,768 Clerical staff 2,897 26,255 37,885 67,232 170,134 390,993 649,100 Special officers and watchmen 1 1,146 1,771 2,762 4,314 6,363 20,177 Allother 116 1,806 2,835 3,636 5,464 11,883 39,456 Federal advisory council, governors' and Federal reserve agents' conferences 2,080 2,668 756 2,548 1,889 1,115 Directors' meetings, legal fees, officers' and clerks' traveling expenses, lifeinsurance and fidelitybond premiums 1,952 14,292 8,514 11,727 25,188 34,733 71,070 Assessments for Federal Reserve Board expenses i 15,675 9,665 11,439 15,223 20,362 21,695 Taxes and fire insurance 1,212 1,211 1,746 3,476 Telephone and telegraph... 97 927 1,629 1,606 11,551 24,961 60,838 Rent, light, heat, and power. 1,258 8,583 1,378 1,708 3,072 8,891 21,800 Printing and stationery 4,296 5,116 2,900 17,104 25,072 41,009 67,998 All other, including postage and insurance on mail, security, and currency shipments, repairs and alterations, etc 2 15,577 11,786 24,102 32,512 73,809 145,500 236,735 Total expenses of operation 30,319 120,039 127,289 194,914 406,130 775,542 1,311,228 Federal reserve currency (original cost, including snipping charges) 18,920 14,443 30,911 82,730 85,719 86,514 Miscellaneous charges, account note issues 8,028 22,825 Taxes on Federal reserve bank note circulation 1 566 42,829 46,397 Furniture and equipment 9,528 35,171 52,758 70,718 82,883 Bank premises 4 806 Total expenses 30,319 138,959 152,826 260,996 546,424 982,836 1,549,847 1 Total assessment for Federal Reserve Board expenses to Dec. 31,1915. 2 Includes $14,556 expenses prior to Nov. 16, 1914. Current expenses of the El Paso branch of the Federal Reserve Bank of Dallas. 19181 1919 1920 Salaries: Bank officers $6,650 $12,338 $15,904 Clerical staff 16,098 49,494 65,183 Special officers and watchmen 670 191 3,810 All other 393 732 4,456 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life- 1 insurance and fidelity-bond premiums 2,599 4,692 8,200 Taxes and fire insurance 61 61 1,292 Telephone and telegraph 470 1,726 16,141 Rent, light, heat, and power 188 1,226 1,877 Printing and stationery 5,072 6,064 8,403 Furniture and equipment 20,163 3,793 15,385 All other—including postage and insurance on mail, security, and currency shipments, repairs and alterations, etc .' 9,108 19,776 33,009 Total current expenses 61,472 100,093 173,660 1 Branch opened for business June 17,1918. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 REPORT OE THE FEDERAL, RESERVE BOARD. Current expenses of the Houston branch of the Federal Reserve Bank of Dallas. 19191 1920 Salaries: Bank officers $9,338 $13,651 Clerical staff 28,545 95,270 Special officers and watchmen 966 5,324 Allother 778 5,457 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life-insurance and fidelity-bond premiums, 6,835 13,340 Taxes and fire insurance 460 Telephone and telegraph 536 8,047 Rent, light, heat, and power 1,002 6,474 Printing and stationery 10,182 13,829 Furniture and equipment 42,832 19,316 All other, including postage and insurance on mail, security, and currency shipments, repairs and alterations, etc 20,153 47,012 Total current expenses. 121,167 228,180 i Branch opened for business Aug. 4,1919. EXHIBIT D, PART 12. FEDERAL RESERVE BANK OF SAN FRANCISCO. Comparison of salaries paid to officers of the Federal reserve bank as of Oct. l 1921, with y salaries paid to officers of three of the large national banks in San Francisco as of Sept. 6, 1921. Annual salary. Governor $24, 000 Chairman and Federal reserve agent 24, 000 Deputy governor 15, 000 Assistant Federal reserve agent and chief examiner 12, 000 Assistant deputy governor 12, 000 Do 10, 000 Cashier 7, 000 Assistant cashier 5, 500 Assistant Federal reserve agent 5,100 Assistant cashier 4, 800 Do 4, 800 Do 4, 500 Do 4, 500 Do. 4, 000 Do. .• 3, 600 Do. 3, 300 Do. 3, 300 Manager, Los Angeles branch 8, 000 Assistant manager, Los Angeles branch 4, 200 Assistant cashier, Los Angeles branch 4, 000 Acting assistant cashier, Los Angeles branch 2, 700 Manager, Portland branch 6, 000 Assistant manager, Portland branch 4, 000 Assistant cashier. Portland branch 2, 880 Manager, Salt Lake City branch 8, 000 Assistant manager. Salt Lake City branch 4, 500 Assistant cashier, Salt Lake City branch 3, 600 Do 3, 300 Manager, Seattle branch 6, 000 Assistant manager, Seattle branch 3, 300 Acting assistant cashier, Seattle branch 3, 000 Manager, Spokane branch 5, 000 Assistant manager, Spokane branch 4, 500 Assistant cashier, Spokane branch 3, 300 Acting assistant cashier, Spokane branch 2, 400 Total 226, 080 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 457 National hanks in San Francisco. Annual salary. Position. Bank A. BankB. Bank C. Chairman of board and president .. $50,000 Presiden t $50,000 $36 00G 18 000 15,000 30,000 Do 18,000 15,000 15,000 Do 12,000 11,000 13,200 Do 12,000 9,000 12,400 Do 12,000 9,000 Do 9,000 Do 7,200 Other officers 64, 800 36,900 35,100 Total 186,800 148,100 155,700 SUMMARY. Annual salaries. Number of officers. Total. Average. Federal reserve bank 35 $226,080 $6,459 Bank A 17 186,800 10,988 Bank B 15 148,100 9,873 Bank C 11 155,700 11,155 Index of growth in number of officers and employees, in their aggregate salaries, and in business of the bank. [1915=1.] Assets and liabili- Personnel. ties. Volume of business. Year. Numb O e f r f . ice S rs a . laries. Num O e b m f e fi p r c . l e o r y s S e a a e n l s a d . ries. E a a s r s n e i t n s. g F c re i t e n r s i d c o o e u e t r n e l r v . a a e - l a D n m o t i d i s p a o c r e o n o k r p s u a e e . - n t n t - s f m G e u t e n o t n l l d d e t . - 1915 . . . 1 1 1 1 1 1 1 1 1916 1 1 3 1 7 3 3 3 1917 3 2 12 6 19 13 11 26 1918 5 3 24 11 50 41 80 42 1919 6 4 26 13 78 47 168 60 1920 8 5 51 26 93 53 263 74 Number of officers and employees. Dec. 31— Julv 1, 1921. 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent 1 1 1 1 1 1 1 Governor 1 1 1 1 1 1 1 Deputy governor 1 1 1 1 1 1 1 Other officers 1 2 9 17 22 28 31 Total officers 4 5 12 20 25 31 34 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

458 REPOET OF THE FEDERAL RESERVE BOARD. Number of officers and employees—Continued. Dec. 31— July 1, 1921. 1915 1916 1917 1918 1919 1920 Employees: Banking department 10 31 77 157 176 429 579 Bookkeeping department. 2 5 17 27 33 54 52 Transit department 1 15 31 64 100 250 246 Federal reserve agent's department 3 2 3 10 18 23 38 Auditing department. 33 53 61 Fiscal agency department 122 207 129 183 206 General 2 4 11 46 53 109 122 Total employees 18 57 261 511 542 1,101 1,304 Total officers and employees 29 62 273 531 567 1 132 1 338 Average number of employees per officer 5 11 22 26 22 36 38 Salaries of officers and employees. Dec. 31— July 1, 1921 1915 1916 1917 1918 1919 1920 Officers: Chairman and Federal reserve agent $12,000 $12,000 $14,000 $14,000 $18,000 $24,000 $24,000 Governor 15,000 15,000 18,000 18,000 18,000 24,000 24,000 Deputy governor 6,000 5,000 10,000 10,000 10,000 12,000 15,000 Other officers 4,200 7,200 29,500 58,280 98,000 113,020 151,480 Total (bonus excluded)... 37,200 39,200 71,500 100,280 144,000 173,020 214,480 Employees: Banking department 14,820 30,230 101,046 190,560 237,380 581,592 887,060 Bookkeeping department... 2,520 4,620 18,240 30,960 40,740 71,340 76,260 Transit department 780 11,640 28,740 62,940 108,720 305,760 326,100 Federal reserve agent's department 7,000 1,620 3,420 16,224 43,460 59,780 96,380 Auditing department 49,900 88,380 112,800 Fiscal agency department.. 146,100 253,140 128,340 245,280 288,740 General 1,800 4,620 72,920 79,000 152,100 195,600 Total (bonus excluded)... 26,920 52,730 298,526 626,744 687,540 11,504,232 1,982,940 Total, officers and employees 64,120 91,930 370,026 727,024 831,540 1,677,252 2,197,420 Average salary payable to— All officers 9,300 7,840 5,958 5,014 5,760 5,581 6, SOS Officers other than chairman and Federal reserve agent, governor, and deputy governors 4,200 3,600 3,278 3,428 4,455 4,035 4,886 Employees 1,496 925 1,144 1,227 1,268 1,366 1,521 Extra compensation paid by the Federal Reserve Bank of San Francisco for the years 1916-1921. [Salaries shown are annual salaries. Per cent of extra compensation based on actual salary received during period.] Jan. 1 to Dec. 31, 1916: One-half of 1 month's salary to all officers and employees up to deputy governor, who have been in service 1 year or more; one-fourth of 1 month's salary to those employed 6 months but less than a year; one-eighth of 1 month's salary to those in Fervice over 3 months but less than 6 months. Minimum payment to any employee $10 Jan. 1 to Dec. 31, 1917: * ' Percent. Less than $1,500 15 11,500 to $0,000. 10 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 459 Jan. 1 to Dec. 31, 1918: Per cent. Up to $1,500 20 $1,501 to $3,000 15 $3,001 to $5,000 10 Jan. 1 to June 30, 1918: Up to $1,500 20 $1,501 to $3,000 15 $3,001 to $5,000 10 July 1 to Dec. 31, 1919: Up to $1,800 25 $1,801 to $3,000 20 $3,001 to $5,000 15 Jan. 1 to June 30, 1920: Up to $1,800 25 $1,801 to $3,000 20 $3,001 to $5,000 15 July 1 to Dec. 31, 1920: Up to $1,800 20 $1,801 to $3,000 15 $3,001 to $5,000 10 Jan. 1 to June 30, 1921: Up to $1,800 15 Principal asset and liability items at end of year. Total cash Bills dis- Total earning reserves. counted. Bills bought. assets. 1915 $20,540,000 $450,000 $652,000 $2,448,000 1916 35, 894,000 251,000 12,462,000 16,584,000 1917 94, 427,000 25,780,000 17,082,000 46,818, 000 1918 151, 491,000 78,759,000 36, 280, 000 123,224,000 1919 184, 539,000 73, 896,000 102, 558,000 190,930,000 1920 183,095, 000 167, 598,000 46, 798,000 227, 514,000 Index of growth 1915-1920 (1915-1) 9 372 72 93 Capital and Federal reserve surplus. Gross deposits. notes in circulation. 1915... . $3,942,000 $17,568,000 $5,149,000 1916 . 3, 929-, 000 44, 506, 000 13,137, 000 1917. . 4,162,000 88, 650, 000 67, 744, 000 1918 5, 861, 000 95, 366, 000 212, 245, 000 1919 13, 289, 000 162, 446, 000 242,462,000 1920 21,121, 000 157, 955,000 272,463,000 Index of growth 1915-1920 (1915= 1) 5 9 53 Volume of business transacted during the year. c B o il u ls n t d e i d s . - Bills bought. U. S b . o s u e g c h u t r . ities k a T n e o t d t o a o l p p d e e i r n s a c - ti m o o u n a n r s t - . 1915 $7,288,000 $3,230,000 $1,010,000 $14,335,000 1916.. 1,973,000 32,776,000 2,624,000 43,336,000 1917 102,£81,000 48,017,000 1 2,143,000 153,927,000 1918 941,441,000 150,654,000 56,654,000 1,148,749,000 1919 1,951,062,000 345', 827,000 116,699,000 2,413,588,000 1920 2,965,647,000 364.845,000 445,745,000 3,776,237,000 Index of growth, 1915-1920 (1915=1) 407 113 441 263 i Exclusive of certificates of indebtedness. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

460 REPORT OF THE FEDERAL RESERVE BOARD. Volume of businesstransacted during the year—Continued. F n e o d b t y e e r s a a l g i s r e s e n u s t e e . d rve n F o e t d b e e y s r r a a e l g d r e e e n e s t m e . r e v d e m o C c t e e u h i m r v e r r e e b d n b e c r a f y r n a o k r n m e s d - . o C u u t a r n t b r o d e a n m n o c k t y e h s m . e p r b ai e d r 1915 . . i $6,760,000 i $310,000 1916 12,840,000 4,509,000 1917 .. 66,820,000 4,503,000 1918 165,380,000 13,240,000 1919 186,330,000 135,544,003 $225,094,000 $215,581,000 1920 181,970,000 148,850,000 378,750,000 498,819,000 Index of growth, 1915-1920 (1915=1).... 27 480 Transactions Number of Amount of through gold checks cleared. checks cleared. settlement fund. 1915 2 $90,029,000 1916 245,511,000 1917 3,047,000 $2,059,361,000 2,339,177,000 1918 9,116,000 4,763,955,000 3,746,196,000 1919. . 16, 209,000 7,305,341,000 5,366,032,000 1920 30,218,000 8,668,570,000 6,703,541,000 Index of growth, 1915-1920 (1915—1) 74 1 Nov. 16, 1914, to Dec. 31, 1915. 2 Represents daily average for the period May 20, 1915 (date of first settlement),to Dee. 31. 1915, multiplied by 365. Expenses of the Federal Reserve Bank of San Francisco. Nov. 16 to Dec. 31, 1915 1916 1917 1918 1919 1920 1914. Expenses of operation: Salaries— Bank officers $5,133 $40,750 $41,208 $56,657 $94,605 $136,807 $188,017 Clerical staff 5,543 24,032 33,553 85,813 287, 608 491,627 1,018,812 Special officers and watchmen 7 113 123 434 1,595 13,757 33,150 All other 160 1,117 19,005 38,691 Federal advisory* council, governors' and Federal reserve agents' conferences 301 4,267 4,160 1,309 3,998 6,197 4,372 Directors' meetings, legal fees, officers' and clerks' traveling expenses, lifeinsurance and fidelitybond premiums 1,784 3,791 7,062 12,553 32,242 47,787 84,034 Assessments for Federal Reserve Board expenses 1 21,688 13,786 16,560 22,277 33,790 45,964 Taxes and fire insurance. 104 7,768 5,672 8,222 Telephone and telegraph 186 610 973 4,996 16,575 32,841 81,030 Rent, light, heat, and power 2,460 15,916 12,164 15,249 21,266 9,108 30,409 Printing and stationery 879 4,875 8,472 23,484 50,933 88,080 178,489 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 2 21,723 6,988 20,837 50,222 236,993 163,022 282,364 Total expenses of operation 38,016 123,030 142,338 267,541 776,977 1,047,693 1,993,554 Federal reserve currency (original cost, including shipping charges) 7,273 49,031 34,998 238,746 187,486 219,398 Miscellaneous charges, account note issues 981 8,077 9,678 28,411 40,600 Taxes on Federal reserve bank note circulation 35,400 46,283 Furniture and equipment.. 12,589 28,142 45,169 119,671 202,751 Bank premises 13,094 Total expenses 38,016 130,303 204,939 338,758 1,070,570 1,431,755 2,502,586 1 Total assessm2nt for Federal Reserve Board expanses to Dec. 31,1915. 2 Includes $19,809 expanses prior to Nov. 16, 1914. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OP FEDERAL RESERVE BANKS. 461 Current expenses of the Los Angeles Branch of the Federal Reserve Bank of San Francisco, 1920* Salaries: Bank officers $12,133 Clerical staff 207,102 Special officers and watchmen 7,450 Allother 2,518 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life insurance and fidelity bond premiums 6,874 Taxes aud fire insurance 557 Telephone and telegraph 10,485 Rent, light, heat, and power 12, 954 Printing and stationery 28,118 Furniture and equipment 68, 962 Bank premises All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 68, 581 Total current expenses 425, 734 Current expenses of the Portland branch of the Federal Reserve Bank of San Francisco. 19171 1918 1919 1920 Salaries: Bank officers $1,617 $6,246 $9,037 $11,542 Clerical staff 3,544 21,887 40,155 71,498 Special fficersa nd watchmen 10 62 1,343 1,761 Allother 38 1,335 2,990 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life-insurance and fidelity-bond premiums 2 16 1,739 2,500 2,715 Taxes and fire insurance 23 Telephone and telegraph 186 2,089 3,409 8,525 Rent, light, heat, and power 903 3,638 3,781 3,845 Printing and stationery 2,352 4,154 7,885 9,374 Furniture and equipment 2,570 3,990 13,802 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 1,664 13,055 13,937 17,635 Total current expenses. 10,292 55,478 87,395 143,687 1 Branch opened for business Oct. 1,1917. 2 Credit. Current expenses of the Salt Lake City branch of the Federal Reserve Bank of San Francisco. 19181 1919 1920 Salaries: Bank officers $4,986 $10,745 $16,335 Clerical staff 34,056 74,403 151,023 Special officers and watchmen 907 826 3,584 All other 317 1,595 4,736 Directors' meetings, legal fees, officers' and clerks' traveling expenses,lifeinsurance and fidelity-bond premiums 1,572 2,373 5,081 Taxes and fire insurance 44 56 Telephone and telegraph 811 4,874 11,920 Rent, light, heat, and power 3,580 7,337 9,798 Printing and stationery 5,942 10,489 23,892 Furniture and equipment 20,237 9,666 33,581 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 12,984 17,874 20,694 Total current expenses 85,436 140,182 280,700 » Branch open for business Apr. 1, 1918. a Branch opened for business Jan. 2,1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

462 REPORT OF THE FEDERAL RESERVE BOARD. Current expenses of the Seattle branch of the Federal Reserve Bank of San Francisco. 19171 1918 1919 1920 Salaries: Bank officers $1,882 $7,902 $10,290 $12,895 Clerical staff 5,207 24,388 46,416 89,983 Special officers and watchmen 77 157 1,640 3,759 Ail other 72 771 1,729 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life-insurance and fidelity-bond premiums 222 3,832 1,607 3,663 Taxes and fire insurance 94 Telephone and telegraph 367 2,109 3,453 7,420 Rent, light, heat, and power 1,129 3,900 4,099 5,044 Printing and stationery 1,927 3,421 7,218 12,500 Furniture and equipment 3,859 8,360 19,040 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 3,457 14,552 23,699 15,439 Total current expenses. 14,268 64,192 1077 553 171,566 i Branch opened for business Sept. 19,1917. Current expenses of the Spokane branch of the Federal Reserve Bank of San Francisco, 1917 i 1918 1919 1920 Salaries: Bank officers $2,694 $6,412 $11,249 $12, 519 Clerical staff 7,011 25,474 46, 540 78,971 Special officers and watchmen 224 120 681 2,093 All other 300 1,050 2,177 Directors' meetings, legal fees, officers' and clerks' traveling expenses, life-insurance and fidelity-bond premiums 1,549 1,729 2, 537 3,005 Taxes and fire insurance 64 269 Telephone and telegraph 559 2,238 3, 624 7,788 Rent, light, heat, and power 2,116 4,169 5,637 6,036 Printing and stationery 2,299 3,807 7,024 10,076 Funnture and equipment 3,540 19, 749 11,147 All other, including postage and insurance on mail, security and currency shipments, repairs and alterations, etc 14,130 14,000 Total current expenses. 19,665 54,775 112, 221 148,081 i Branch opened for business July 26, 1917. EXHIBIT E. OCTOBER 11, 1921. Hon. SYDNEY ANDERSON, Chairman Joint Commission of Agricultural Inquiry, United States Congress, DEAR MR. CHAIRMAN: In the record of the statements made by a former Comptroller of the Currency and ex officio member of the Federal Reserve Board to the commission on August 2 and 3, there are included two addresses made by him, one in Washington on April 15, 1921, and the other in Augusta, Ga., on July 14, 1921, in which certain allegations are made reflecting upon the intelligence and efficiency, and, by innuendo, upon the probity of members of the Federal Reserve Board. Other statements with which the board takes issue appear in various communications to the board which the former comptroller introduced in his testimony. Many of these allegations are so trivial and irrelevant as to be unworthy of notice, and others, particularly those which relate to credit policies, it is believed have been fully answered in the statements made by Goy. Strong and myself before your commission on August 4 and subsequent days, and in letters whiclThave been introduced in the record. Having in mind the desire of the commission to assemble as promptly as possible facts more directly related to the purposes for which it was organized, I did not deem it opportune when I was before the commission to take up its time in answering the general charges made by the former comptroller that the board had approved or permitted reckless waste of money in the operations of the Federal reserve banks, particularly with respect to the building of the Federal Reserve Bank of New York, now in course of construction, and to the salaries paid to the officers of the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BAHKS. 463 In each annual report of the Federal Reserve Board to Congress an exhibit has been made of the number of officers and employees of all Federal reserve banks and of their salaries. In its annual report for the year 1918, the board called the attention of Congress to the necessity of providing adequate quarters for the Federal reserve banks and reported purchases of building sites which had been made by 10 of the 12 banks. In each subsequent report a frank statement has been made to Congress of the progress of the building operations by the respective banks. When the Committees on Banking and Currency of the Senate and House of Representatives were considering, early in the year 1919, the board's recommendation that section 7 of the Federal reserve act be amended by permitting the banks to create a maximum surplus out of earnings equal to 100 per cent of their paid-in capital, instead of 40 per cent as previously provided, I called the attention of the committees to the fact that all Federal reserve banks would be obliged to construct their own buildings, as it was not practicable to lease adequate quarters and otherwise to provide suitable vaults for the custody of the large amounts of cash and securities held by the banks. I called attention also to the large expenditures which would have to be made in these building operations, and urged that the banks be permitted to increase their surplus in order to reduce the proportion of fixed assets represented by the buildings to their capital account. The committees appeared to be impressed with this argument, for the act of March 3, 1919, went beyond the board's recommendations and provided that Federal reserve banks might create a surplus out of earnings equal to 100 per cent of their subscribed capital, plus 10 per cent of net earnings annually, after such a surplus had been created. As no criticism has been made to the commission by the former comptroller, however, of any of the Federal reserve bank buildings except that of the Federal Reserve Bank of New York, it seems unnecessary at this time to present further data relating to any of them except the one in New York. The board understands that the governor of the Federal Reserve Bank of New York has submitted to the commission a full statement regarding the building operations of that bank, every important detail of which has been submitted from time to time to the Federal Reserve Board. Since he appeared before the commission, the former comptroller has given to the press a letter directing his criticism especially to the salaries paid to officers and employees of the Federal Reserve Bank of New York, and this letter has recently been inserted in the Congressional Record. Each Federal reserve bank is by law placed under the supervision and control of a board of directors who are authorized to appoint such officers and employees as are not otherwise provided for in the Federal reserve act and to define their duties. The law also requires that any compensation that maybe provided by the board of directors of a Federal reserve bank for directors, officers, or employees shall be subject to the approval of the Federal Reserve Board. 1 transmit herewith copy of a letter, dated October 6, 1921, from the governor of the Federal Reserve Bank of New York, in which he discusses not only the salaries of officers which have been specifically criticised by the former comptroller, with the exception of his own and that of the Federal reserve agent, but also the increase in the number of employees and in their compensation. The board has, in approving salaries and increases in salaries from time to time, been advised of all the facts set forth in this letter, and its approval of the salaries proposed by the directors has been based upon an appreciation of these facts. This letter contains a detailed review of the principles governing the salary policies of the Federal Reserve Bank of New York, the approval ot which by the members of the Federal Reserve Board is evidenced by their action in approving from time to time specific salaries and increases voted by the bank's directors. Inasmuch as Governor Strong's sense of propriety does not permit him to discuss in his letter the salaries paid the Federal reserve agent and himself, particular reference will be made to these salaries in this communication. The Federal reserve agent is appointed by the Federal Reserve Board and his salary is fixed by the board. All other officers and employees of the Federal reserve bank, except those in the Federal reserve agent's department, are appointed by the board of directors and the salaries fixed by them, subject to the approval of the Federal Reserve Board. The officers of Federal reserve banks are not officers of the United States. They are private citizens, just as cfficeis of national banks, which are, like Federal reserve banks, chartered under an act of Congress, are private citizens. The conduct of the business of a 1 ederal reserve bank, and of the Federal Reserve Bank of New York especially, which is now the largest banking institution in the country, with transactions many times greater than those of the largest member banks, with great responsibilities to its member banks, to the public, and to the Treasury Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

464 REPORT OF THE FEDERAL RESERVE BOARD. of the United States, requires the services in executive and other capacities of trained officials and experts who will devote all of their time to the work of the bank, not only in the ordinary routine but in the study of a great variety of technical subjects, and it is highly desirable that men be obtained who can always be relied upon to show good judgment and all other necessary qualifications. These officers are not permitted to engage in any other business or in political activities or to hold public office. Their service in the Federal reserve bank is not a stepping stone to a political career nor does it afford means of outside financial profit. It would be impossible to secure the services of competent and efficient officials for the Federal reserve banks were their salaries to be measured by the salaries paid to the political officers of the Government. In the former comptroller's letter, above referred to, and in his Augusta speech, which is a part of the record of the commission, he appears to take the position that the salary of a United States Senator is the standard upon which salaries of Federal reserve bank officials should be based. He did not himself, however, while he was in office, observe this principle, but on the contrary recognized the fact that in order to obtain competent national bank examiners, who, by the way, are officers of the Government, he would be obliged to pay regard to the technical skill and ability of these men and to what they could earn in the employ of private banking institutions and corporations. These examiners are appointed by the Comptroller of the Currency, with the approval of the Secretary of the Treasury, and their salaries are fixed by the Federal Reserve Board "upon the recommendations of the Comptroller of the Currency." The board does not regard these salaries as excessive, and in what follows no such inference should be drawn. The report of the Comptroller of the Currency for 1920 gives in one item (page 22, second volume) the total of the "expenses on account of the national bank examining service," which includes salaries and other expenses incurred in making examinations, including traveling expenses, but does not give any statement, either in detail or in the aggregate, of salaries paid national-bank examiners. The report of the Federal Reserve Board for the same year, however, gives a complete detailed list of salaries paid national-bank examiners (pages 278-280). These salaries were initiated and recommended, in each instance, by the Comptroller of the Currency, just as salaries of Federal reserve bank officers and employees are initiated by the directors of the Federal reserve banks. The report shows that 10 examiners are paid salaries equal to or in excess of that of a United States Senator; that 1 examiner is paid a salary in excess of that of 2 United States Senators; and that the aggregate of salaries paid these 10 examiners is more than the salaries paid 13 United States Senators. It shows also that the total salaries of all national-bank examiners on the pay roll as of December 31, 1920, aggregate $637,900, an amount equal to the salaries of 85 United States Senators. In addition to this, during the year 1920, two national-bank examiners were, for a time, each paid a salary at the rate of $30,000 per annum, an amount equal to that paid 4 United States Senators, but it is only fair to state that these examiners were detailed to examine foreign branches of national banks and that these salaries were designed to cover ocean transportation and all traveling and living expenses while they were engaged in making these examinations abroad. The foregoing comparisons are made merely to show the absurdity of attempting to draw conclusions from totally unrelated facts. In its annual report for 1918 the board said: "It is evident that the Federal reserve banks, in order to insure the proper conduct of their business and to protect the interests of the Government, the member banks, and the public, must employ men of exceptional experience and ability. Experience has shown that the larger member banks are disposed to draw upon the Federal reserve banks for men to fill high official positions, and in order to retain the services of officers who are constantly being tempted with outside offers at high salaries it has become necessary to recognize this competition. While the board has in no case approved salaries for Federal reserve bank officers as high as those paid officers of similar rank by the larger member banks in the various Federal reserve cities, it has approved salaries approximating the average salaries paid by the larger local banks. In the case of junior officers, heads of divisions, and clerks, the board has recognized from the outset that the compensation paid them must be in line with that paid by the larger member banks. The board does not believe that the Federal reserve banks should become training schools for future officers of member banks. It feels, on the contrary, that sufficient inducements should be offered by the Federal reserve banks to make service with them attractive as a career." During the past seven years four governors of Federal reserve banks have resigned in order to accept executive positions with other banking institutions at much higher Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 465 salaries, and the same is true with respect to a considerable number of deputy governors and junior officers. The board does not regard the salaries paid the governor of the Federal Reserve Bank of New York and the Federal reserve agent as being excessive. No one who is familiar with the qualifications of these gentlemen, their long experience in banking, their established position in the banking community before the Federal reserve bank was organized, the magnitude of their responsibilities, and the opportunities which are constantly afforded them to make other and more profitable engagements, would assert for a moment that they are being paid more than they are worth. The only question, therefore, to be considered is: Does the business of the Federal Reserve Bank of New York require the services, as its two senior officers, of men of their type? The board believes that it does, and it believes, furthermore, that it would be false economy to depend upon less able and experienced men. I am inclosing for the information of the commission copy of a letter from Governor Strong, which outlines the history of his connection with the Federal Reserve Bank of New York. The statements made therein were already familiar to some members of the board who have served continuously since 1914. The directors of the Federal Reserve Bank of New York voted in September, 1917, to increase the governor's salary from $30,000 to $50,000 per annum, and the question of approval was considered by the Federal Reserve Board. Upon being informed, however, that Mr. Strong would not then accept this increase, and in view of the fact that the country was at war, the board took no action. The records of the Treasury Department will show what was done by the Liberty loan organization of the Federal Reserve Bank of New York, under the leadership and supervision of Gov. Strong, in the placing of Government securities during and after the Avar. In the prosecution of this work, in connection with his other duties, his health broke down and necessitated his absence from the bank during the year 1920, to which reference is made in his letter. In December, 1918, the directors of the Federal Reserve Bank of New York again voted to increase the salary of Gov. Strong to $50,000 per annum. The following is an extract from the minutes of the meeting of the Federal Reserve Board on December 14, 1918: il Present: The chairman (Mr. McAdoo), the governor, Mr. Strauss, Mr. Miller, Mr. Hamlin, Mr. Williams, Mr. Broderick, secretary. "Mr. Strauss stated that he had reviewed the recommendations of the Federal Reserve Bank of New York of increases in salaries of and bonuses to its officers and employees, and submitted the following report, which was ordered spread upon the minutes of the meeting: (Here follows report of Mr. Strauss on a letter from Mr. George F. Peabody, deputy chairman of the board of directors of the Federal Reserve Bank of New York, on the subject of increased compensation for employees of the bank.) "The chairman expressed himself as heartily in accord with the principles propounded by Mr. Strauss. He then explained to the board his views as to the principles that should be observed in determining compensation to officers of Federal reserve banks. He stated that his attitude had been that in the beginning and during the formative period of the system he advocated comparatively low salaries until the business of the banks could be established, and a fair measure obtained of their operations and a more accurate realization reached of the dimensions of the problems and responsibilities of the banks' officers, adding that last year he had opposed an increase in the salary of the governor of the Federal Reserve Bank of New York only because the country was at war. He said, now that the business of the banks had been well established and they were making large earnings for the Government, the time had come when the office of governor of a Federal reserve bank should command on its merits a fair and just compensation, and that he would vote to fix the salary of the governor of the Federal Reserve Bank of New York at $50,000 per annum, this salary to prevail not only for the present incumbent, but for his successors. The chairman stated it as his view that the principle governing the fixing of salaries of officers of Federal reserve banks should be that the salary be made sufficiently attractive to make a man willing to adopt the Federal reserve system as a permanent career having its rewards in the way of promotion like any other institution. He opposed the view that the office of head of a Federal reserve bank should be considered on a parity with high Government office, stating that heads of Federal reserve banks could not be said to enjoy that magnitude of power and prestige pertaining to high Government office, while the bank officers were yet placed in a different position from those engaged in private institutions in that they were affected by the mutations of public life and controlled by a changing public board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

466 REPORT OP THE FEDERAL RESERVE BOARD. "The chairman stated that he had conferred with the Secretary of the Treasuryelect, Mr. Carter Glass, who concurred in the substance of the principles recited by him, leaving it to the board, of course, to make, under such principles, reasonable adjustments of salaries throughout the system in its discretion. "The chairman stated as a further principle that the salary of a Federal reserve agent should be at least as high as that of any deputy governor of the Federal reserve bank of which such agent may be chairman. "Mr. Miller pointed out that the tremendous earnings of the Federal reserve banks had accrued this year largely out of Government business, and asked the chairman if he had that factor in mind in expressing his opinion on the question. "The chairman replied that he did not think the percentage basis of earnings of banks is a fair guide for the measure of compensation to be paid, stating it as his judgment that the questions of salaries at the several banks should be dealt with each on its own merits with respect to the responsibility assumed by the goyernor when taking office. "Mr. Strauss stated that the board should not consider the earnings of a bank in fixing compensation; that at future periods it might well be the business of the banks not to make money. "The chairman concurred in this view, stating that it might be necessary to operate a bank at a loss as a result of a general plan of combining the resources of all banks as a common fund, in which event, the responsibilities of the governor of a bank forced to operate at a loss would be even greater than when large earnings were accruing. He said the problem was to ascertain what is a just compensation, taking into consideration all the elements of the problem—the size of the bank, the cost of living in the community, and the responsibility assumed by the chief executive officer of the bank. "Mr. Williams pointed out that there were certain governors of Federal reserve banks whom the board felt were not the strongest men for their positions. '' The chairman stated that if the board undertook the responsibility of keeping in office incompetent men as governors of Federal reserve banks the salaries of such governors should nevertheless have a relation to the responsibility assumed. "On motion, duly seconded, it was voted unanimously that the salary of the governor of the Federal Reserve Bank of New York for the ensuing year be approved if fixed at $50,000 per annum, and that the recommendations of the board of directors of the Federal Reserve Bank of New York, as submitted by Deputy Chairman Peabody in his letter of December 11,1918, as modified in principles by the memorandum submitted by Mr. Strauss, above, be approved with the understanding that the board will review same in detail and make such adjustments as may be necessary at its meeting on Monday, December 16. "At this point the chairman (Mr. McAdoo) stated that it was necessary for him to withdraw from this, the last meeting of the Federal Reserve Board which he would attend, and expressed to the members of the board his appreciation of the work they had done during his incumbency of the office of chairman, stating that he would always have a keen interest in the personal welfare of members of the board, as well as in their official work." For the further information of the commission, and in order that it may better determine what weight, if any, should be given to the criticisms made by the former comptroller of the salaries paid by the Federal Reserve Bank of New York, I transmit a memorandum made up from the minutes of the Federal Reserve Board showing the dates of the various meetings at which increases in salaries of officers and employees of the Fedo'""l Reserve Bank of New York were considered, and the vote of the comptroller on thase proposals. It will be noted that the minutes show that he voted affirmatively on 80 per cent of the salary increases, including those which hp now criticizes, that he did not vote against any of them, but was absent from meetings at which the other 20 per cent were considered. • The board requests that this letter and the memorandum attached be made a part of the record of the commission. If the commission desires any further statement regarding any other allegation made by the former.comptroller, which appears in the record, the board will be pleased to furnish it without delay. In view of the fact that the allegations made by the former comptroller are a part of the official record of the commission and are being constantly reiterated by him, the board respectfully requests that the commission make public its findings regarding them. Very truly, yours, W. P. G. HARDING, Governor. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 467 EXHIBIT F. OCTOBER 6, 1921. DEAR GOV. HARDING: Mr. John Skelton Williams, former Comptroller of the Currency, in an address made in Augusta on July 14, 1921, printed in the Congressional Record under date of July 20, 1921, and printed on pages 36-48 of part 13 of the hearings before the Joint Commission of Agricultural Inquiry, has made certain charges involving the salary policy of the Federal Reserve Bank of New York. In an open letter dated September 12, 1921, published on the cover page of the Manufacturers' Record of September 22, 1921, he has enlarged upon those charges and has made certain statements that are wholly inaccurate or purposely misleading. In a speech before the United States Senate on October 1, 1921, Senator Heflin introduced into the Congressional Record (see p. 6645 of the Oct. 3, 1921, issue) a complete copy of that letter, suggesting "a clean-up of the high salary scandal at the reserve bank in New York," and intimating that the Republican Party should ask for "an immed ate investigation of this whole disgraceful affair," which he states was "permitted" by the Federal Reserve Board without protest by the Senate. AH of the present salaries in effect at the federal Reserve Bank of New York were approved by the Federal Reserve Board under the terms of the Federal reserve act, and in a general way they are, of course, familiar with the necessities for those increases. But for the convenience of the board, and for such disposition as it might deem proper, I wish to submit herewith a complete review of the conditions and circumstances upon which the salary policy of the bank has been based and to answer concretely the charges which have been made against increases heretofore granted. In brief, the criticisms may be summarized in these two statements appearing in the Augusta speech just referred to, one, that "the total pay roll of the Federal Reserve Bank of New York in the period of acute deflation from 1919 to 1920 actually increased $778,000 in that one year" and, two, that the salaries paid to all officers of the Federal Reserve Bank of New York in 1916 "aggregated $93,000, while the amount paid for officers' salaries for the same bank in 1920 was over $400,000." The letter appearing in the Manufacturers' Record, which is an elaboration of previous critical statements, is printed on the cover page of that paper and is directed solely as an attack against the Federal reserve bank in the matter of salaries. This letter has been distributed widely throughout the country. It is obviously designed to create a most incomplete and misleading picture, presenting in absolute terms the amounts of increase in the pay roll to officers and employees of the Federal reserve bank without relating those in creases to the growth in the volume of work performed by that institution and without referring in any way to the general average of individual salaiies or to other pertinent factors. I would like to discuss these matters in detail and on their merits. The statement is made that the Federal Reserve Bank of New York has been II distinctly extravagant" and that "despite the reticence of the officials" he can give some facts and figures of interest to the readers of the periodical to which his letter was addressed. This inference that the Federal reserve bank has attempted improperly to conceal anything is wholly unfounded. There is not now, and never has been, any undue "reticence" on the part of the Federal Reserve Bank of New York concerning any of the details of its expense account, whether salaries or" other items of expense. So far as salaries are concerned, and that seems to be the chief item on which his charge of extravagance is based, section 4 of the Federal reserve act provides that "any compensation that may be provided by boards of directors of Federal reserve banks for directors, officers, or employees shall be subject to the approval of the Federal Reserve Board." Every increase in the salary of any officer or employee of the Federal Reserve Bank of New York has been approved by the Federal Reserve Board, and it, in its annual report to Congress, under the caption "Personnel and Salaries," reviews the number of officers and employees of every Federal reserve bank for each year, reciting the amount of the salary received by the "chairman and Federal reserve agent," the "governor," the "deputy governor," and "other officers," stating how many there are in each group where there are more than one, and giving the aggregate for each group. Under these circumstances, it is difficult to understand how Mr. Williams, an ex officio member of the Federal Reserve Board, whose duty it was to approve of salaries of all officers of all Federal reserve tanks, and who, himself, approved of several different annual reports of the Federal Eeterve Board to Congress, including the present form and method of reporting the salaries of the Federal reserve banks, can now with honesty or fairness make the statement that there is "any secrecy as to the salaries or compensation paid to the officers and other employees of the Federal reserve banks." If he believed that there is any "secrecy" in the reports of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

468 REPORT OF THE FEDERAL, RESERVE BOARD. Federal Reserve Board, it must be because he now regards as inadequate for his own private purposes reports which he himself approved when he was a member of the Federal Reserve Board, and which he apparently at that time thought were sufficiently frank and explicit for the purposes of Congress and the public. While it is true that the annual reports of the board to Congress do not now mention the names of the individual officers of the various Federal reserve banks, it is obvious that the reason for that is solely one of convenience and economy. There is sufficient data given in each annual report with respect to the salaries of those banks not only to furnish a very definite picture of salary payments as a whole, but aleo to form the basis of an intelligent request for more detailed information on the part of any Member of Congress who may be interested in learning further details. The charge that there is any "secrecy" must, therefore, be disregarded both as an inaccurate criticism of a practice which Mr. Williams himself was a party to for several years. It would be interesting to know how far as a member of the board he actually approved of the salary increases in the Federal reserve bank of New York which he now flaunts before the public as an example of extravagance and waste in the expenditure of what he erroneously terms "public money. " But independently of his own action in all of these matters, it is the belief of the officers of the bank that the salaries paid by it have not been and are not now in excess of the value of the services rendered, and an examination of the records and statistics which have been prepared for and considered b> the officers will, I believe, be determinative of the fact that the salaries of both officers and employees of the Federal reserve bank have, on the whole, been much lower, rather than higher, than the market for such services in the city of New York. What are the facts? Employees' salaries.—Mr. Williams has said that the total payroll of the Federal Reserve Bank of New York "in the period of acute deflation from 1919 to 1920 actually increased $778,000 in that one year. " It is needless to comment upon the inaccuracy of the statement that the period from 1919 to 1920, when the increase of $778,000 in the salary roll of the Federal Reserve Bank took place, was a period of "acute deflation, " since it was at that time, in January of 1920, that prices were rising at their most rapid rate. An inspection of the chart hereto attached, indicating the trend of wholesale commodity prices in four countries, shows graphically how rapid was the rise in these prices in the winter of 1919-20, when the increase in the salary roll to which Mr. Williams refers took place. The general index shows an increase from 207 per cent to 238 per cent of the prewar level between June, 1919, and December, 1919. So, also, the report of the National Industrial Conference Board on the cost of living in the United States, and particularly the report of the Department of Labor showing the cost of living in the citv of New York, which are attached hereto, show conclusively that the greatest increase in living costs took place in the fall of 1919, when the index shows an increase in the city of New York of 17 per cent from 176 per cent in July, 1919, to 206 per cent on January 1,1920. Furthermore, from the 1st of January, 1920, to the high point, in May, 1920, living costs increased still further by 7 per cent. It seems, therefore, that the statement that has been made on numerous occasions, and which even as late as September 12, 1921, was presented to the public in an open letter to the Manufacturers Record, concerning the great increase in the salary roll of the bank during what is called "the years of acute deflation from 1919 to 1920," is wholly misleading and obviously calculated to deceive the public as to the true state of facts. Furthermore, in all of the criticisms with reference to the increase in the bank's salary roll, no mention is made of the tremendous growth in the work of the bank during the period referred to. In considering the propriety of salary expenditures it is necessary to bear in mind these two factors, first, the relation of the number of employees to the volume of business done, and second, the general average salary for each individual. If it can be demonstrated, as I believe the statistics and charts submitted herewith do demonstrate, that the bank's force has not increased out of proportion to the volume of work done, the only other question for consideration is whether the general average salary has increased out of proportion to the general wage scale in the same vicinity. The Federal Reserve Bank of New York was organized in November, 1914. On January 1, 1915, the total number of employees (exclusive of officers) was 36; the total annual payroll (exclusive of officers) was $48,014; and the general average of all salaries paid was $1,334. Following is submitted a table showing the change in the number of employees at the bank, the total annual payroll, and the general average salary for the first of each year from 1915 to 1921, inclusive. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 469 January 1— e N m u p m lo b y e e r e o s. f T nu o r a t o a l l l l p . a a n y - s c a A l l u v a s r e i y v ra , e g e o e x f any bonus. 1915.. 36 $48,014 $1,334 1916 71 85,987 1,211 1917 164 160, 460 978 1918. .. 814 853,256 1,048 1919 . .. 2,630 3,007,550 1,144 1920 2,768 3,965,660 1,433 1921 2,734 4,056,783 1,484 NOTE BY FEDERAL RESEKVE BOARD.—Figures given in the above table are based on the bank's records as of January 1 of each year and include the salary increases effective as of January 1 and the changes in the number of employees effective as of the first of the year, whereas figures given in the Federal Reserve Board's statement represent the number of employees and their aggregate annual salaries as of December 31 of each year before the above changes took place. Employees of the Buffalo branch are included in the board's figures but not in the bank's figures. It will be observed from this table that while the salary roll as a whole has increased rapidly the increase is due principally to the large increase in the number of employees on the bank's pay roll, an increase necessitated by the very rapid growth in the bank's business from the shell of an organization in 1914 to what is now the largest bank in the United States, with over $1,500,000,000 in resources, doing billions of dollars of business a year, and frequently $1,000,000,000 in transactions in one day. I am submitting herewith for the information of the board a table showing the growth in the bank's work during this period. Summarized, this table shows that the volume of work done by the bank during the year 1920 was over 64 times what it was during the calendar year 1915. In spite, however, of this extraordinary increase in the volume of the work done by those departments of the bank in which it is possible to measure the volume of work, nevertheless the number of employees in those same departments increased only 31 times between December 31, 1915, and December 31, 1920, and only 38 times for the entire bank during the same period. Admitting that the total pay roll has not increased out of proportion to the work performed by the employees (in fact it is relatively many times less), the next question is whether the average individual salary is consistent with the general wage scale in the community. The figures heretofore presented indicate that the general average salary x on January 1, 1915, was $1,334; on January 1, 1916, $1,211; on January 1, 1917, $978; on January 1,1918, $1,048; on January 1, 1919, $1,144; on January 1, 1920, $1,433; and on January 1, 1921, $1,484. The figures covering the general average salary, graphically portrayed in a chart submitted herewith, indicate that the increase in the average salary l of the bank's employees was 8 per cent from January 1, 1915, to and including January 1, 1920, when the increase of $665,321 in the employees' salary roll, to which Mr. Williams refers, was made. It was then that the first large increase ($240) in the average salaries of the Federal reserve bank employees took place. What was the justification for this increase? It became apparent to the officers of the bank during the latter part of 1919 that the financial distress of many of the clerks was very acute. Many requests had been received from the employees for salary increases and, upon investigation, it was found that in most cases accumulated" savings had been exhausted; many employees had contracted necessary debts and were unable to pay them; and some could not afford to buy requisite clothing and food. The conditions disclosed by this investigation were such as to constitute a source of real danger to the bank in the handling of cash and securities, and demanded that a general salary increase be made. Before that increase was recommended, however, the Federal reserve bank officials made a thorough and careful analysis of the conditions of the employees, not only in their relation to the increased cost of living, but also in their relation to other bank employees in New York City. A very lengthy and careful report was prepared and submitted to the Federal Reserve Board. It contained an analysis of the salaries paid to employees of 10 other banks located in the city of New York, itemizing not only the general average salary but the amount of extra bonus and high cost of living bonus paid by each bank. It showed that while the^average salary paid at that time, that is, in 1919, to the employees of the Federal Reserve Bank of New York, including the bonus of 20 per cent was $1,440, nevertheless the average salary paid to the employees of each of the other 10 banks, including the bonus, ranged from a minimum of $1,620 in the case i Exclusive of bonus. 85227°—22 31 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

470 REPORT OF THE FEDERAL RESERVE BOARD. of one bank to $2,265 in the case of another. In fact, the average salary of 6 of these banks, including the bonus, was over $2,100. Independently of bonuses, it was seen that our average salary was only $1,200 which was lower than that of all the other banks except one which paid a bonus of 70 per cent. It was also found that the United States "Bureau of Labor Statistics for September, 1919, showed that food prices for the city of New York increased 75 per cent over 1914, and that from 1914 to June, 1919, clothing had increased 152 per cent; housing 13 per cent; fuel and light 45 per cent; furniture, household goods, etc., 137 per cent; and miscellaneous or sundry items 75 per cent. While the United States Bureau of Labor reports show that food prices for New York City had increased only 75 per cent, and while the Federal Reserve Bank of New York in its own report on business conditions dated October 20, 1919, stated that the expenditures for food for a typical family in New York City had increased 70.7 per cent since 1914, nevertheless figures published by the State Industrial Commission on September 23, 1919, showed that food prices averaged 90 per cent higher than in June, 1914, and the investigation of the conditions of our own employees revealed the fact that their rents had increased on the average about 30.6 per cent for the year 1919. The results of these conditions were obvious. The high wages that were being paid at that time to skilled and unskilled mechanics, longshoremen, truck drivers, common laborers, and other workers were given much publicity in the press and caused our employees to compare their salaries with the salaries received by those of other classes of wage earners. Much dissatisfaction resulted among the clerical force generally, and this prompted several attempts to organize the bank clerks and other employees into unions for the purpose of correcting the unfavorable scale of wages which they were being paid. Under all these circumstances and conditions the directors were forced to the conclusion that a very substantial revision in the salary scale was imperative in order to maintain the morale and necessities of the force and a continuance of the successful operation of the bank. The recommendations made by the directors for salary increases on January 1, 1920, amounted to $665,321. These increases which were approved by the Federal Reserve Board on December 19, 1919, increased the average salary, independent of bonus, from $1,193 to $1,433, and since that time the average has varied between $1,424 and a high of $1,491 in February of 1921. At the present time (Sept. 15, 1921) it is $1,489, 'but the bonus of 20 per cent which was being paid for the first quarter of 1921 was reduced to 10 per cent in the second quarter and hap since l^een entirelv eliminated. It may be well at this time briefly to refer to the fact that in 1916 owing to increases in the cost of living which took place during that year (see chart on cost of living attached hereto) the directors of the bank recommended the payment of a bonus of extra compensation on a graded scale of 10 per cent, 7^ per cent, and 5 per cent. The purpose of this action was to enable the bank's employees to meet rapidly increasing living costs without at the same time adding to their salaries a permanent increase. There is inclosed herewith a table showing the amount of annual salary roll and extra compensation payments from 1915 to July 1, 1921, when the last extra compensation was paid. As previously remarked, it has now been omitted entirely. The figures, charts, and tables already submitted have made appropriate references to the so-called bonus or extra compensation payments, and clearly indicate how relatively low has been the average salary of the bank's employees even including the extra compensation. Official salaries.-—The next charge which Mr. Williams makes concerning the administration of salaries by the Federal Reserve Bank is that with respect to the salaries of the bank's officers. The comparisons which have already been made of the employees' salaries, and the necessity for increases in those salaries, are pertinent to a consideration of the changes in the salaries of the officers of the bank, although there are other considerations perhaps even more so. In his letter of September 12,1921, appearing in the Manufacturers' Record, he lays particular stress upon the increases in the salaries paid to certain officers of the bank "indicating increases in salaries from the time of their employment to 1920-21." While he qualifies the figures which he gives by the statement that he believes they are substantially correct, he adds that he believes that they probably^ understate, rather than overstate, the salaries paid at the time. This list of figures is inaccurate in part, and misleading in whole. It refers to the salaries of only a few more than half of the entire list of officers and is inaccurate even in many of those which it does recite. There follows a revised list of the salaries paid to those officers selected by Mr. Williams, together with a correct statement of the initial salary paid to each of them Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 471 by the bank. For the sake of convenience the percentage of increase has also been given, together with the number of years over which that increase is spread. Inasmuch as Mr. Williams makes the charge that 60 per cent of the 24 officers mentioned by him never received over $1,500 to $2,500 before they came to the reserve bank, there is another column indicating the salary of each officer received prior to his employment by the bank, whether as an officer or an employee. This particular reference will be discussed later. i Salary prior Officer. t b o r a e F n s k e e d r e v e m r e a - l s I a n l i a ti r a y l . P s r a e la se ry n . t p s I l i n o n c y c r e m e a e e s m n e t - . si I n n o c f c e f r i c e m e a r a s . e de Y F re e e s a d e r e r s v r a i e n l ployment. • bank. Per cent. Per cent. Benjamin Strong.. $60,000 $30,000 $50,000 66.0 66.0 Pierre Jay i 16,500 16,000 30,000 87.5 87.5 J. H. Case 20,000 25,000 30,000 20.0 20.0 E. R. Kenzel 3,000 4,200 22,000 423.8 423. 8 L. F. Sailer 6,500 10,000 30,000 200.0 200.0 G. L. Harrison 210,000 22,000 25,000 13.6 13.6 Francis Oakey 20,000 20,000 20,000 L. H. Hendricks.. 9,500 6,000 18,000 200.0 200.0 H. A.Hopf 20,000 3 7,000 18,000 Shepard Morgan.., 7,500 11,000 15,000 36.4 36.4 E. H. Hart 2 4,800 12,000 15,000 25.0 25.0 A. W. Gilbart 3,000 2,400 12,500 420.8 247.2 J. D. Higgins 3,000 3,000 12,000 300.0 140.0 J.W.Jones 2,600 4,800 10,000 108. 3 108.3 L. R. Rounds 2,800 2,400 12,500 420.8 247.2 J. L. Morris 12,500 9,000 12,000 33.3 Carl Snyder 10,000 10,000 10,000 W.B.Matteson... 2,200 2,400 10,000 316.6 150. 0 A. J. Lins 1,320 1,500 10,000 566.6 31G.6 G. E. Chapin 3,000 3,600 10,000 177.7 108.3 H. M. Jefferson.... 3,000 3,500 8,000 128.5 128. 5 J. E. Crane 1,320 1,080 7,500 594.5 108.3 W.A.Hamilton.. 4,000 2,400 7,000 191.6 75.0 R. M. O'Hara 3,500 3,000 8,400 180.0 40.0 1 Includes bonus and directors' and committee fees. ! Federal Government service. »Half time. This table illustrates the cases of those officers of the bank whose salaries are specifically criticized by Mr. Williams, and accounts in part for the increase in the total official salary roll "from $93,000 in 1916 to $400,000 in 1920. But the real explanation of that increase is attributed, not so much to individual increases as to the extraordinary growth in the work of the bank, resulting in consequent additions both to the number of employees and officers. It has always been the policy of the bank wherever possible to fill new offices or vacancies by promoting those in its service, whether they be employees or officers. Thirteen of the 24 men listed above entered the employ of the bank as clerks and at relatively small salaries, so that their present salaries as responsible officers of the largest bank in the country may seem large as compared with their initial salary in a newly organized institution with relatively little business. Owing, however, to the rapid increases in the bank's business and the increasing necessity for additional employees and officers, the promotion of those in the service was at times rapid, but it is believed that no promotion was ever made that was not fully merited in the circumstances. An examination of the percentage of increase in individual salaries will show that the greatest increase was in those cases where the officers started in the employment of the bank as clerks. The percentage of increase in official salaries as such is relatively much less, and in those cases where it seems large by way of percentage, it will be seen to have been spread over a number of years. In order more clearly to explain these individual increases, it may be well to read a chart by years showing the number of officers in the service of the bank on the first of each year, their aggregate salaries, and the general average of all official salaries, together with the proportion of officers to employees in each year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

472 REPORT OF THE FEDERAL RESERVE BOARD. Number of Aggregate Average Ratio of officers. s o a f l f a i r c i i e al s. s o a f l f a i r c i i e al s. e o m ffi p c l e o rs y e t e o s. Jan. 1, 1915 5 $65,700 $13,140 lto 7 Jan. 1, 1916 7 83,000 11,857 lto 10 Jan. 1, 1917 9 116,200 12,911 lto 18 Jan. 1, 1918 . 16 185,200 11,575 lto 51 Jan. 1, 1919 27 303,700 11,248 1 to 97 Jan. 1, 1920i 30 387,100 12,903 lto 92 Jan. 1, 1921 34 456,400 13,423 lto 80 Oct. 1, 1921 37 493,900 13,349 lto 75 NOTE BY FEDERAL RESERVE BOARD.—Figures given in the above table are based on the bank's records as of January 1 of each year and include the salary increases effective as of January 1 and the changes in the number of officers effective as of the first of the year, whereas figures given in the Federal Reserve Board's statement represent the number of officers and their aggregate annual salaries as of December 31 of each year before the above changes took place. Officers of the Buffalo branch are included in the board's figures but not in the bank's figures. This table speaks for itself. As already pointed out, the work of the bank from the year 1915 through the year 1920 increased 64 times; the number of employees increased 31 times; the number of officers increased 6 times; but during the same period the employees' salary roll has increased 49 times and the officers' salary roll 5 times—nowhere near in proportion to the growth of the work in the bank. Furthermore, in spite of the necessary increase in the aggregate of the bank's official pay roll, it should be pointed out in this case, as in the case of employees, how relatively steady has been the average official salary except for the increase heretofore discussed that took place in 1920. Since January, 1920, the average salary has remained fairly constant at a little over $13,000. The last column of the table submitted above also bears an important relation to this discussion; that is, the number of employees as compared to the number of officers in the bank. Our investigations have shown that, based upon figures compiled as of October 1,1920, the Federal Reserve Bank of New York had fewer officers in comparison to the number of employees than any of the other Federal reserve banks; that is, 1 officer to each 80 employees. In the case of the other reserve banks the proportion ranges from 1 officer to 65 employees all the way down to 1 officer for each 21 emplovees. From the tables submitted herewith it will also be seen that while the Federal Keserve Bank of New York has only 1 officer to 80 employees, the other New York City banks which were investigated ranged from 1 officer to 57 employees, the smallest percentage, to 1 officer for each 14 employees, the largest percentage. The records submitted will also, upon examination, disclose the fact that while the officers' salaries in the Federal Reserve Bank of New York is 0.024 percent of the total resources of the bank only one other Federal reserve bank has a lower ratio of officers' salaries to total resources, and that is in the case of the Federal Reserve Bank of Boston, where it is 0.023 per cent. The ratio in the case of the Federal Reserve Bank of Chicago is the same as that in New York, and in all other Federal reserve banks it is higher, running up to a percentage of 0.074 per cent in the case of one reserve bank. In other words, the percentage of officers' salaries to total resources of the Federal Reserve Bank of New York is not only next to the lowest in the whole system, but is only about one-third of the highest of the system. A similar comparison with seven of the largest New York City banks and trust companies is even more favorable to the reserve bank, since the percentages of salaries to total resources in the case of those city banks range from 0.07 per cent, the lowest (which is about three times our percentage) to a maximum of 0.36 per cent, which is approximately 15 times that of the Federal Reserve Bank of New York. The chart showing the percentage of total pay roll represented by the officers' salaries is also most favorable to the New York bank. The Federal Reserve Banks of New York and Kansas City pay 9.5 per cent of their total pay roll to officers. These are the lowest percentages in the Federal reserve system; the others range from 10.5 per cent to as high as 19.1 per cent, or twice the proportion that is paid in New York. In the case of the New York City banks the officers' salaries range from 20 per cent to 38 per cent of the total pay roll; that is, from twice as much to over four times as much as the percentage in the case of the Federal Reserve Bank of New York. While it is not practicable to attempt to review the reasons for the increase in the individual salaries for each of the officers on the pay roll, I shall discuss some of those salaries in detail, inasmuch as they are repeatedly compared with the salaries of the President of the United States, the Vice President, Senators, and members of the Cabinet, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 473 Mr. Jay, Federal reserve agent and chairman of the board of directors, receives $30,000 a year; but as his salary is fixed by the Federal Reserve Board and not by the directors of the bank, I shall make no further mention of it at this time. The salary of one of our four deputy governors is now $30,000. Our directors recommended that it be increased to $40,000 on January 1, 1921, but the recommendation was not approved by the Federal Reserve Board. The officer of the bank to whom I refer, within the past six months, has declined an offer of $55,000 a year to become vice president of one of the largest national banks in New York City. He has had other offers almost, if not quite, as attractive, which he has likewise declined. Another deputy governor, who has been with the bank since its organization, receives $30,000, recently increased from $25,000. He has declined an offer of $38,500 a year from one of the largest national banks in New York City, and has received other offers, but states that he prefers for the present to remain in the service of the bank. Another deputy governor of the bank whose salary was increased within the last few months from $22,000 to $25,000 has a position awaiting him in New York at any time he cares to take it with one of the largest and most prosperous national banks, and at a larger salary than he now receives from the Federal reserve bank. Another of the deputy governors, who receives a salary of $22,000 (increased last January from $18,000), has declined at least one offer of an important position at a salary of $25,000, and with a brilliant prospect of advancement. 1 have mentioned these few instances to illustrate what has taken place with respect to almost every important officer of the bank and to emphasize the fact that we are laboring in a competitive market in which the demand for services of men of exceptional ability is intense. In fact, most of the important officers of the bank have received and declined attractive offers at salaries in excess of those which they now receive from the bank. It is necessary, therefore, that the bank, in order to retain the services of men of ability, essential to the successful conduct of the business of a bank with resources exceeding $1,500,000,000 and doing a business of many billions of dollars a year, pay salaries somewhat commensurate with, even if not equal, to the market value of their services. These men have devoted themselves without reservation, without sparing their health, frequently without vacation, and without regard to hours of service or compensation, to the service of their Government during the war and to the service of their country in building up the Federal reserve system since the war ended. The charge that they are overpaid is wholly unfounded and ill-becoming one who it is understood has himself approved of a great percentage of the increases which he now attacks. The board is, of course, familiar with and might deem it proper in view of this letter to furnish a summary of the votes cast by Mr. Williams with respect to these increases. In summarizing this discussion of the question of officers' salaries it appears— (1) That while the bank's volume of work from the year 1915 through 1920 has increased 64 times, and the number of employees has increased 38 times, nevertheless, the number of officers has increased only 6 times. (2) That the average salary of all officers has remained extraordinarily constant around $13,000. (3) That the proportion of officers to employees (1 to 80) is less than that obtaining in any of the other Federal reserve banks, which range from 1 to 65, the lowest, to 1 to 21, the highest, and smaller than the proportion of officers to employees in eight of the largest commercial banks in New York City, which range from 1 to 57 to 1 to 14. (4) That the proportion of officers' salaries to total resources in the Federal Reserve Bank of New York (0.024 per cent) ft smaller than in any of the other Federal reserve banks except one, which is 0.023 per cent, the others running as high as 0.074 per cent, and it is also smaller than the proportion of officers' salaries to total resources in seven of the largest commercial banks in New York City, which range from 0.07 per cent, the lowest, to 0.36 per cent, the highest. (5) That the proportion of officers' salaries to the total pay roll of the Federal Reserve Bank of New York (9.5 per cent) is smaller than that in any of the other Federal reserve banks except one, which is precisely the same, the others ranging from 10.5 per cent to as high as 19.1 per cent, and it is also smaller than the proportion of officers' salaries to the total pay roll of seven of the largest commercial banks in New York City, wnich range from 20 per cent to 38 per cent. Before finally passing from this subject there are several incidental points emphasized at much length in public discussions by Mr. Williams, to which reference might be made. First. Mr. Williams sa>s that he had "been told " that 60 per cent of the 24 officers to whom he referred never received over $1,500 to $2,500 before thev came to the reserve bank and stated that they are now receiving salaries as high as Cabinet officers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

474 REPORT OF THE FEDERAL RESERVE BOARD. An examination of the table heretofore submitted will indicate that of the officers mentioned precisely three received less than $2,500 prior to their employment by the Federal reserve bank—that is, one-eighth, or 12£ per cent, and not 60 per cent— and of those three not one is receiving a salary as high as a cabinet officer. This is simply another instance where Mr. Williams, either through a lack of information or through intentional deception, distorts the facts to suit his own purposes. "While it may be that he "had been told" that 60 per cent of these officers never received over $1,500 to $2,500 before they came to the Federal reserve bank, he must have known that his informant lacked that authoritative knowledge that is usually an essential prerequisite to such a public statement of abuse. Second. A majority of Mr. Williams's criticisms of the salary policy of the bank take the form of comparisons between the official salaries at the bank and the salaries of certain governmental officers, such as the President, the Vice President, members of the cabinet, and Senators. As has been ably stated by a prominent ex-member of the Federal Reserve Board, salaries of officers of Federal reserve banks should not be considered in relation to the salaries of high Government officials, since the "heads of Federal reserve banks could not be said to enjoy that magnitude of power and prestige pertaining to high Government office," and since the reserve officers are also "placed in a different position from those engaged in pri\ate institutions in that they were affected by the mutations of public life and controlled by a changing public board." The fact that the Government can not for various reasons pay to its higher executive officers salaries comparable to the executive salaries of private corporations is not a sound logical argument against the payment of proper salaries to the officers of banking corporations chartered under Federal law, which have to compete for personal services in a market with other private banking institutions. Third. So far as the particular charge that employes of the reserve bank receive more than $5 a day while traveling on official business of the bank is concerned, I can only say that the expenses of any person traveling for the bank or anyone else in these days are often in excess of $5 per day, and that there is no reason in justice that they should not be reimbursed for their actual and reasonable traveling expenses. It is unnecessary, however, to state that a careful watch is kept over the individual expense accounts of employees and officers by the officers themselves, by the auditing department of the bank, and by the examiners of the Federal Reserve Board in order that items not reasonably a part of one's traveling expenses might not be contained in any expense voucher. Fourth. Mr. Williams comments that "it also seems to me ridiculous for a reserve bank to employ at a salary exceeding that paid to a United States Senator or the editor-in-chief of many important newspapers in big cities, a man for whose employment an urgent argument was made by the reserve bank employing him that he was needed to touch up and give literary style to the press statements which the bank had occasion to give out from time to time, although high-priced men were already employed in the bank's publicity department who were supposed to be fully competent for such work." NOTE BY FEDERAL RESERVE BOARD.—On page 45 of part 13 of the hearings before the Joint Commission of Agricultural Inquiry, Mr. Williams stated: "It also seems to me ridiculous for a reserve bank to employ at a salary exceeding that paid to an United States Senator or to the editor-in-chief of many important newspapers in big cities, a man for whose employment an urgent argument was made by the reserve bank employing him that he was needed to touch up and give literary style to the press statements which the bank had occasion to give out from time to time, although high-priced men were already employed in the bank's publicity department who were supposed to be fully competent for such work." In a letter addressed by him to Chairman Anderson of th%commission, under date of October 17,1921, he says: " I do not think—and so expressed myself at the time—that it is in accord with the principle of adminis tration of government at the lowest possible cost to the people to pay a man with no claim to banking knowledge $12,000 a year, the salary of a Cabinet officer, to put literary finish on the public outgivings of the New York Reserve Bank." On November 16,1920, the Federal Reserve Board received aletter, dated November 15, from the chairman of the board of directors of the Federal Reserve Bank of New York requesting its approval of the employment of Mr. W. Randolph Burgess as chief of the. division of reports, statistical department of the Federal Reserve Bank of New York, at an annual salary of $4,500. In theletter referred to the chairman stated: "I have felt for some time that we needed the right sort of man to study the texts of our reports, particularly the monthly report and the annual report, so that the conditions of good English and conservative and consistent statement could be met. We have found a man who seems admirably fitted by experience and temperament to comply with these qualifications, and at a salary which is by no means excessive. The managing committee and the executive committee both acted favorably upon the recommendation approved by me, for the employment of W. Randolph Burgess as chief of the division ofreports, statistics department, at $4,500 a year." I deny categorically that the Federal Reserve Bank of New York has now, or ever has had, a publicity department. There is issued once a month a "Monthly review of credit and business conditions in the second Federal reserve district" under the direction of Mr. Jay, chairman of the board of directors and Federal reserve agent. This review is a pamphlet of about 10 or 12 pages and is reputed to be one of the most Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 475 valuable compilations of current business conditions that is prepared for the use of manufacturers, business men and bankers within the district. I submit that the effort and expense incident to its preparation and issue can not be charged "unjustified" or "extravagant." The bank engages in no other form of publicity and can not be subjected to a charge of indulging in any kind of propaganda. Such a statement is wholly unfounded and the author knows it to be so. It might even be commented that the bank has at times been severly critized because it has failed to take steps to educate the public by circulars, articles, or even "propaganda, " if that is the proper word; to advise the public of the scope and purpose of the system in order that a more complete knowledge of functions on the part of the public might itself be the best answer to the vicious and false criticism of such opponents as Mr. Williams has himself proved to be. Fifth. 'Xhe charge is also made that ''the expense allowance of officers and employees, including bank examiners, of the Federal reserve banks are practically unlimited," although cabinet officers and other high officials of the Government, and national bank examiners, are limited in their expenses to $5 per day," and that "an inspection of some of the expense accourits of the Federal reserve banks would be decidedly edifying to a congressional committee if they should be looked into." For the information of the board, I wish to say that at the time of my appearance before the Joint Commission of Agricultural Inquiry, I showed to the chairman of that commission a copy of the complete expense account of the Federal Reserve Bank of New York since its organization, and, as I stated to him then, I am prepared and anxious at any time to present it to the commission or, in fact, to any committee of Congress which may see lit to interest itself in the matter, with the assurance that a careful and critical inspection of it will only be conclusive of the care and conservatism with which it is administered, It is, of course, available at any time for the inspection of the Federal Reserve Board. For the further information of the board, I wish briefly to review the steps which have been taken at various times by the bank officers with a view to maintaining a careful and effective control over the expense account. Shortly after the war it was realized that the work of the bank had developed more rapidly than its organization, and after a careful study by the officers and directors a new plan of organization was made effective on September 1, 1919, definitely fixing the responsibility of each officer of the bank and placing each department of the bank's activity under the direct charge of an officer responsible for its efficient operation. A monthly record was established for each department of the bank, showing the number of employees engaged and the expense incurred. These figures have been carefully analyzed to ascertain whether the increased expenses were warranted. Coincident with the development of the new organization there was created the administration function which was charged with the responsibility of engaging all new employees, after fully satisfying itself that such employees were actually required because of increased work. This department is also charged with the responsibility of properly placing the employees and of shifting them from one department to another as the occasion may require. Under the new plan of organization there was also created the methods and supplies department for the purpose of more efficiently controlling expenses by the establishment of a centralized authority over the ordering of all supplies and equipment and also over changes in the mechanical operation of the various departments. No purchases are made by the purchasing agent unless the requisition bears the vise of this department. Many economies resulted from the establishment of this department such as: First, the installation of air-drying equipment in wash rooms replacing the linen and paper towels formerly used; second, the establishment of the post-office station and elimination of the express charges on shipments of currency and securities. The printed forms have been standardized as to size and style and the number of forms in use reduced, effecting very considerable savings in the use of paper. The work of this department has resulted in a large number of other economies of this character. It was deemed advisable in the latter part of 1920 to make a more intensive study of each department in the bank and the managing committee therefore established the procedure committee for this purpose, composed of three of the senior officers of the bank, to actively engage in this wort: for the purpose of simplifying the operations of each department, eliminating unnecessary effort and expense, so that the work of the bank will be accomplished at the lowest cost consistent with safety and efficiency of operation. This committee has already completed the study of some three or four departments, and it is expected that a very considerable saving in operation will result from the recommendations made by the committee. 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476 REPORT OF THE FEDERAL RESERVE BOARD. The current expense account has been constantly under close scrutiny by the directors and senior officers of the bank. Department heads and chiefs have been cautioned that no expenses are to be incurred except for the purpose of securing greater efficiency of operation. Department heads have been called together in meetings, the situation thoroughly canvassed, and managers and controllers were requested by the governor to advise him what economies have been effected in their respective departments. In this way the necessity of economical and efficient operation of the bank has been impressed upon those in charge of operations. Every purchase requisition or current-expense voucher requires the approval of an officer of the bank, and if the amount is more than $100 the approval must be that of a senior or general officer Any division requiring equipment, printed forms, supplies, or services of any kind is required to prepare a purchase-order requisition. All requisitions, regardless of prior approval, are routed to the planning division of the methods and supplies department for vise: First, as to the necessity of the purchase. Second, as to the standard. Third, as to the quantity. Fourth, in the case of "rush " requisitions, whether or not the necessity warrants the incurring of any additional expense. Such requisitions as are approved are then routed to the purchasing division where actual purchase is- negotiated. In the case of all purchases of any consequence, bids are secured from several different suppliers or manufacturers, after which orders are placed based upon bids received. The expense division receives all invoices and make3 a complete examination to determine that the bill is regular in every way, that the material or service invoiced has been received, that the price appears to be reasonable, and that the charge is a proper one for the bank to pay. In this way there is secured first, a vise of all requisitions before purchase, and, second, a review of all bills rendered before payment, this review acting as a check upon the first vise as well as upon the purchasing agent. No member of the organization is permitted to make any purchase or incur any expense except through the regular channels specified above. All divisions are supplied with stationery and supply cabinets in charge of a supply clerk who is permitted to requisition only such supplies as are actually necessary for the work of the bank. Monthly departmental expense reports are prepared giving a comparison of the expenses for the month and the period this year with last, and all officers have been urged to do everything possible to hold down the expense account, not only in the usage of equipment, supplies, etc., but also in the use of the labor element, so that the expansion of the force may be held at the lowest possible minimum. Special meetings of all of the officers of the bank were called on June 13 and September 16, 1921, particularly to review the expense of each department of the bank and to have each officer report all actions taken and proposed by his department to effect further ecomomies in operation. For the information of the board I am inclosing a copy of a report of those meetings which is in itself illuminative not only of the care with which all of the officers watch the expense account, but also of the actual reduction in the cost of operation in proportion to the volume of work done. Before concluding, it seems necessary briefly to comment upon the limitations and character of the the service and compensation of an officer of a Federal reserve bank. As is well known, the salaries of all officers and employees of Federal reserve banks (with the exception of the Federal reserve agent) are fixed by the directors of each bank, subject to the approval of the Federal Reserve Board as required by the Federal reserve act. Every salary now paid by the Federal Reserve Bank of New York has been passed upon by a committee of the directors, approved by the directors of the bank, submitted to the Federal Reserve Board for approval, and all approved salaries finally reported to Congress. The assertion that the salaries paid are too large has already been discussed in detail, but it may be proper to mention our understanding of the principles which underlie the salary policy of the bank. It is, I believe, no different from that prevailing in the system as a whole. When the present officers of the Federal reserve bank were engaged, and all of them have been engaged since I became the governor of the bank, they were told that their sole opportunities in the bank were for advancement in the service of the bank, for earning larger salaries, and for making successful banking careers, and that if they displayed satisfactory ability it would be the policy of the bank to enlarge the staff as the business grew by promotion rather than by getting men from outside. This policy has been pursued as fully as possible, although not in every instance, because the growth of the bank has been so rapid as to make it necessary at times to draw men from other sources than our own organization. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 477 The conduct of the business of a bank such as the Federal Reserve Bank of New York, with transactions man}' times exceeding those of the largest banks in the country, with great responsibilities to its member banks, to the public, and to the Treasury of the United States, requires services of men of a high degree of skill who are willing to devote all of their time to the bank not only in the ordinary routine in the day's work but in study and acquiring knowledge of a great variety of technical subjects, and who can be relied upon at all times to show breadth of judgment, untiring effort, and unselfish loyalty. They are not permitted to engage in any kind of commercial or political activities, to hold public office, or to make their service in the Federal reserve bank a stepping stone to a political career or a means of financial profit. In short, they are bank officers like the officers of any other banking institution whose duty it is to serve the bank wholeheartedly and singly for a salary, but who, unlike the officers in other banking institutions, must do so without the possibility of any other profit in either a commercial or political sense. In fact, the regulations of the Federal Reserve Board expressly provide that no officer of a Federal reserve bank shall hold any public or political office during his term of service with the bank, and the rules of the Federal Reserve Bank of New York itself prohibit any officer or employee from engaging in any kind of business or commercial enterprise for profit. It is apparent, therefore, that comparison of the salaries paid to these officers with those received by public officials is not only misleading but calculated to obscure the real problem with which the management of the reserve banks are faced. Men who enter public life do so with the knowledge that they abandon the rewards of business for the rewards and prestige afforded by a political career, although it is true that Members of Congress and many other political officers are not necessarily denied the pursuit of other business occupations for profit. Under all these conditions it would be impossible to procure services of men of the ability required by the Federal reserve banks, men precluded from the possibility of profit other than their salaries, if their salaries are to be limited or measured by the salaries paid to the political officers of the Government. In order to retain such men in the service of the Federal reserve system it is essential that the Federal reserve banks be able to pay salaries fairly commensurate with, though not necessarily as high as, the standard of salaries fixed by the competitive demands of other private banking institutions located in the same vicinity. It has been the purpose of this letter to submit facts and figures which it is believed will be convincing that the salaries in the Federal Reserve Bank of New York are not only not extravagantly high, as has been asserted, but are much lower than the general level of salaries for similar services in the community. Very truly, yours, BENJ. STRONG, Governor. LIST OF INCLOSURES CONTAINED IN LETTER OF OCTOBER 6, 1921, GOV. STRONG TO GOV. HARDING. 1. A chart of wholesale commodity prices in four countries. 2. A chart comparing wholesale commodity prices and the cost of living. 3. A chart comparing New York factory workers' earnings, Federal reserve bank employees' salaries (with and without bonus), cost of living in New York, and cost of living in the United States. 4. A table showing the number of employees, amount of pay roll; average salary, and extra compensation. 5. A list of all officers showing initial salary, present salary, number of years with bank, and other data. 6. Tables comparing— (a) Percentage of officers' salaries to total resources in New York Reserve Bank with other reserve banks and certain New York City banks. (6) Percentage of officers' salaries to total pay roll in New York Reserve Bank with other reserve banks and with certain New York City banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

478 REPORT OF THE FEDERAL RESERVE BOARD. (c) Number of officers to employees in the New York Reserve Bank with other reserve banks and with certain New York City banks. 7. A report of a meeting of the officers of the Federal Reserve Bank of New York concerning the control of expense. 8. A table showing the percentage of increase in volume of business, in the number of employees, and in expense (with supporting tables).1 PER CtNT <LSO or-y v/ofketzs / ZOO • ost of JLiirinq\ inth* US. \ 150 rost of LWtrtq "ret,?.1 \ witK bonus / ^yvitfvout bonus 100 --J • ^ Employee^of mmmmm fedena/ f&sser 50 0 19)5 1916 1917 1918 1919 1920 1921 Earnings of factory workers in New York State, the cost of living, and average salaries of employ of the Federal Reserve Bank of New York. (Figures for December, 1914=100 per cent.) i Printed as part of Exhibit C (pages 38-44). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESEKVE BANKS. 479 WHOLESALE PRICES FOUR COUNTRIES PERCENT. 700 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

480 KEPORT OF THE FEDERAL RESERVE BOARD. PER CENT. 300 \ / iAL PRCE! 200 r V /"" \ s / r CO OF LI 3 *>> 100 1916 1917 1918 1919 1920 1921 Wholesale prices and the cost of living expressed as percentages of figures July,. 1914. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table showing the number of employees, amount of pay roll, average salary, and extra compensation of the Federal Reserve Bank of New York (exclusive of Buffalo branch). Average salaries (not Number of employees. Total annual General including extra com- Extra compensation. Amount of pay roll average pensation). increase. (exclusive salary. Men. Women. Total. of officers). Men. Women. Amount. Per cent. Jan. 1,1915 36 $48,014.00 $1,334.00 (10 per cent on salaries up to and including $1,200; 1\ per J J a u n n . e 1 1 , , 1 1 9 9 1 1 6 6 71 $ 1 7 5 , , 4 1 3 2 7 0 . . 0 0 0 0 9 8 5 5 , , 6 9 4 8 0 7 . . 0 0 0 0 1 1 , , 2 1 1 2 1 5 . . 0 0 0 0 } $9,387.50 I 1 $ c 3 e , n 0 t 0 0 o ; n 5 p s e a r l a c r e i n e t s o f n r o s m al a $ ri 1 e ,2 s 0 o 0 v e u r p $ t 3 o ,0 0 a 0 n , d e x i c n e c p l t u d g i o n v g - 85 l ernor, deputy governors, and Federal reserve agent. Jan. 1,1917 7,268.00 160,460.00 978.00 20 per cent up to $1,200; 15 per cent, $1,201 to $3,000; 10 164 I 47,489.05 \ per cent, $3,001 to $7,200. July 1,1917 8,640.00 242,244.00 844.00 [15 per cent less than $1,500; 10 per cent, $1,500 to $5,000. J Ja u n ly . 1 1 , , 1 1 9 9 1 1 8 8 1,3 2 8 3 1 8 9 4 7 5 7 3 0 , , 8 2 7 1 6 8 . . 0 0 0 0 1,2 8 9 5 0 3 , , 9 2 4 5 4 6. . 0 0 0 0 1,0 9 4 6 8 4 . . 0 00 0 1 } 423,075.81 { | [ 2 5 p p e e D r r c o c e . e n n t t , $ u 3 p , 0 t 0 o 1 $ t 1 o , 5 $ 0 5 0 ,0 ; 0 2 0 0 . per cent, $1,501 to $3,000; 15 o Jan. 1,1919 2,630 143,720. 00 3,007,550. 00 1,144. 00 ) 25 per cent up to $1,500; 20 per cent, $1,501 to $3,000; 15 J O u c l t y . 3 3 1 1 , , 1 1 9 9 1 1 9 9 1 1, , 3 2 9 8 1 1 1 1 , , 3 3 5 1 6 2 2 2, , 7 5 4 9 7 3 2 1 5 7 4 , , 7 4 0 4 0 0 . . 0 0 0 0 3 3 , , 3 0 0 6 6 9 , , 5 2 1 3 1 3 . . 0 0 0 0 1 1 , , 2 1 0 8 4 4 . . 0 0 0 0 $ 1 1 , , 4 4 7 7 9 4 . . 0 0 0 0 $ 9 9 2 0 4 0 . . 0 0 0 0 \ I f 2 2 1 3 4 8 9 8 6 2 , , , 0 3 8 7 2 6 2 4 2 . . . 0 0 0 0 0 0 p 1 5 p 0 e p r e c r e c n e t n $ t 3 u ,0 p 0 1 t to $ $ 1 5 ,5 , 0 0 0 00 ; . 40 per cent, $1,501 to $3,000; j 25 per cent, $3,001 to $6,000. Jan. 1,1920 1,437 1,331 2,768 665,321.00 3,965,660. 00 1,433.00 Jan. 31,1920 1,464 1,326 2,790 3,972,240.00 1,424. 00 1,690.00 1,129.00 Feb. 29,1920 1,483 1,332 2,815 3,986,080. 00 1,416.00 1,678.00 1,124.00 Mar. 31,1920 1,486 1,325 2,811 3,988,480.00 1,418.00 1,681.00 1,123.00 184,648.00 20 per cent on first $1,500; 15 per cent on next $500; 10 per cent on next $500. No additional per cent on amounts between $2,501 and $5,000. Apr. 30,1920 1,479 1,303 2,782 4,420.00 3,963,220.00 1,425.00 1,688.00 1,125.00 May 31,1920 1,463 1,283 2,746 3,760.00 3,926,360.00 1,429.00 1,696.00 1,126.00 June 30,1920 1,478 1,264 2,742 3,540.00 3,913,920.00 1,427.00 1,683.00 1,126.00 182,140.00 Do. July 31,1920 1,490 1,260 2,750 17,240.00 3,941,510.00 1,433.00 1,701.00 1,117.00 Aug. 31,1920 1,462 1,241 2,703 13,760.00 3,906,670.00 1,445.00 1,720.00 1,122.00 w S O e c p t. t . 3 3 1 0 , , 1 1 9 9 2 2 0 0 1 1 , , 4 4 4 4 0 0 1 1 , , 2 2 4 4 4 1 2 2 , ,6 6 8 8 4 1 2 1 9 1 , , 5 7 0 0 0 0 . . 0 0 0 0 3 3 , , 8 9 9 0 3 8 , , 5 3 9 9 0 0 . . 0 0 0 0 1 1 , , 4 4 5 5 2 7 . . 0 0 0 0 1 1 , , 7 7 3 4 7 7 . . 0 0 0 0 1 1 , , 1 1 2 2 1 1 . . 0 0 0 0 179,451.00 Do. > Nov. 30,1920 1,450 1,249 2,699 19,360.00 3,943,770.00 1,461.00 1,750.00 1,125.00 Dec. 31,1920 1,511 1,263 2,774 16,460.00 4,083,723.00 1,472.00 1,758.00 1,129.00 184,532. 00 Do. Jan. 1,1921 1,490 1,244 2,734 23,840.00 4,056,783.00 1,484.00 1,768.00 1,133.00 Feb. 1,1921 1,494 1,231 2,725 10,790.00 4,063,393.00 1,491.00 1,783.00 1,137. 00 Mar. 1,1921 1,505 1,228 2,732 16,320.00 4,068,823.00 1,490.00 1,773.00 1,222.00 187,290. 00 Do. Apr. 1,1921 1,568 1,254 2,822 15,280.00 4,172,063.00 1,478.00 1,744.00 1,139.00 May 1,1921 1,610 1,246 2,856 21,400.00 4,230,343.00 1,481.00 1,740.00 1,146.00 June 1,1921 1,645 1,261 2,906 20,120.00 4,296,623.00 1,479.00 1,733.00 1,147. 00 July 1,1921 1,666 1,250 2,916 22,420.00 4,331,143.00 1,485.00 1,733.00 1,156.00 97,743. 00 10 per cent on first $1,500; 7£ per cent on next $500; 5 pot cent on next $500. No additional per cent on amounts between $2,501 and $5,000. 00 i Effective July 1,1916. a Dec. 31, 1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

List of officers, showing initial salary, present salary, number of years with bank, and other data—Federal Reserve Bank of New York. 00 Salary previous Initial Salary Increase Increase Name and official title. Previous experience. t i o n g e n e t m er - - s b w a a l i a n t r l k y i . ap o w p f o f h i i c e n e n t r e . d P s r a e la s r e y n . t en b s t i a e n n r c k i o n . g Time. a m o p f e p f n i o c t i e n r a . t s - Time. of bank. Per cent. Per cent. o Benjamin Strong, governor. President Bankers Trust Co $30,000 $30,000 $50,000 66.0 7 years.. . 66.0 7 years. J. Herbert Case', deputy 7 years vice president, Farmers Loan & Trust $20,000 25,000 25,000 30,000 20.0 4 years 20.0 4 years governor. Co. H Louis F. Sailer, deputy 24 years with National Park Bank, New York, 6,500 10,000 10,000 30,000 200.0 6 years, 3 months.. 200.0 6 years, 3 months. governor. assistant cashier. 22,000 22,000 25,000 13.6 1 year, 3 months 13.6 1 year, 3 months. governor. E. R. Kenzel. deputy gov- 26 years with Chemical National Bank (audi- 3,000 4,200 4,200 22,000 423.8 7 years 423.8 7 years. ernor. tor). D. H. Barrows, secretary.. 2 years with Farmers Loan & Trust Co. (chief 3,000 4,000 4,000 7,500 87.5 3 years, 7 months . 87.5 3 years, 7 months. 'clerk, corporate trust department). IS. H Hart,srcneralcounse 2 years attorney for Associated Railway and 4,800 12,000 12,000 15,000 25.0 1 year, 6 months.. 25.0 1 year, 6 months. Steamship Cos. in the South; 2 years in United States Army (captain); 4 months with American relief administration (American secretary to supreme economic council at Paris): 7 months member war loan staff Treasury Department, attached to office of Assistant Secretary of Treasury Leffingwell. Xueius R. Mason, assistant 6 years practicing attorney; 2 years special 6,000 6,500 6,500 6,500 9 months 8 months. general counsel attorney, Department of Justice, Washing- 1 ton, D. C. (salary and fees from private practice). Francis Oakey, acting gen- 12 years public accountant (income from prac- 20,000 20,000 20,000 20,000 1 year, 10 months . 1 year, 10 months. eral auditor. tice). Harry A. Hopf, organiza- 15 years in life insurance (chief underwriter); 20,000 18,000 18,000 18,000 2 years, 5 months 2 years, 5 months. tion counsel. 3 years industrial engineer f annual income). X. H. Hendricks, controller 19 years with Commercial National Bank of 9,500 6,000 6,000 18,000 200.0 7 years 200.0 7 years. at large. . Albany, assistant cashier: 10 years with National State Bank of Albany (cashier): 2 years with National Nassau Bank of New York (vice president). Hay M. Gidney, controller 7 years' bank experience in California; 3 years 2,500 4,000 4,500 15,000 275.0 4 years, 5 months.. 233.33 3 years, 6 months. at large. secretary to member of Federal Reserve Board. A. W. Gilbart,controller of 10 years with National Nassau Bank of New 3,000 2,400 3,600 12,500 420.8 7 years 247.2 4 years, 3 months. administration. York (cashier); 8 months with Irving National Bank of New York (assistant cashier). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

L. R. Rounds, controller oi 7 yer.rs with Hiram Ricker & Sons, Portland, 2,800 2,400 3,600 12,500 420.8 4 years 247.2 3 years, 9 monthsaccounts. Me (accountant and office manager). Jos. D. Higgins, controller 23 years with American Exchange National 3,000 3,000 5,000 12,000 300.0 7 years 140.0 5 years. of cash and custodies. Bank of New York (as istant to officers). J. W. Jones, controller of 4 years manager Long Island City branch of 2,600 4,800 4,800 10,000 108.3 3 years, 9 months.. 108.3 3 years, 9 months. fiscal agency function. Broadway Trust Co. Jos. L. Morris, manager 9 years with Farmers Loan & Trust Co. (loan- 12,500 9,000 12,000 12,000 33.3 9 months 6 months. credit department. ing officer and credit manager). G. E. Chapin, manager 20 years with Westinghouse Electric & Manu- 3,000 3, eoo 4,800 10,000 177.7 4 years, 5 months.. 108.3 3 years, 9 months. loan department. facturing Co. (treasury accounting representative in charge of credits and collections; also acting assistant treasurer Westinghouse 1 lectric Export Co.) X Adolph J. Lins, manager at 9| years with Bankers Trust Co. (assistant 1,320 1,500 2,400 10,000 566.6 316.6 4 years, 3 months. large. manager, transfer and registration department). W. B. Matteson, manager 15 years with National City Bank of New York 2,200 2,4C0 4,000 10,000 316.6 ....do 150.0 3 years, 9 months. securities and certificates (acting head securities department). of indebtedness depart- Ul ments. c Carl Snyder, manager sta- 10000 10,000 10000 10,000 1 jTear, 7 months. 1 year, 7 months. tistics department. director', $10,000 plus royalties). R. M. O'Hara, manager 14 years with Canadian Ban k ol Commerce (ac- 3500 3000 6000 8400 180.0 4 years.. 40.0 2 years. bill department. countant); 5 years with Farmers Loan & Trust Co. (auditor); 5 years with Chubb & Sons (office superintendent). H. M. Jefferson, manager 7 years with Chase National Bank; 1|- years 3000 3500 3500 8000 128.5 7 years., 128.5 7 years. personnel development bank examiner State of New York; 3J department. years with Bank of Coney Island (vice presi- Ul dent and cashier); 1^ years with Windsor Trust Co. (secretary and treasurer). Jay Crane, manager foreign 1 year on staff of editor of Commercial and Fi- 1320 1080 3600 75C0 594.5 6 years. 108.3 2 years, 9months. department. nancial Chronicle. I. W. Waters, manager per- 8 years with Gallatin National Bank, New 1800 2250 4000 7200 220.0 7 years. 80.0 3 years, 2 months. W sonnel service depart- York; 3 years with Hanover National Bank, ment. New York. Chas. H. Coe, manager 20 years with National Nassau Bank (chief 2200 1500 4000 7200 380.0 5 years, 2months.. 80.0 2 years, 9 months. check department. clerk); 2 years with Irving National Bank. Wm. A. Hamilton, man- 6 years with J. P. Morgan & Co.; 3 years with 4000 2400 4000 7000 191.6 4 years 75.0 Do. ager cash department. Studebaker Corporation. W. H. Dillistin, manager, 10 years with Silk City Trust Co., Paterson, 3800 4500 5,000 6600 46.6 3 years, 2 months.. 32.0 2 years. bank examinations de- N. J.; 5 years with State of New Jersey (bank partment. examiner). John Raasch, manager, 5 years with Liberty National Bank, New 1,000 1,000 3,000 6000 500.0 7 years 100.0 3 years, 2 months. methods and supplies de- York. partmenL H.R.Murray 24 b a y n ea k r . s with American Exchange National 1,600 2,400 3 ,400 6,000 150.0 4 years, 2 months. - 76.5 2 years. 483 1STKS. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

List of officers, showing initial salary, present salary, number of years with bank, and other data—Federal Reserve Bank of New York. oo Salary Name and official title. Previous experience. p t i o r n e p g e v l n o e i t o y m e u r - s - I s b n a w a i l t a i n i t r h k a y l . ap S o w p f a o f h l i i a c e n r e n y t r e . d P s r a e la s r e y n . t e In n b s c t i a e n r n e r c i a k e n s . g e Time. a I m n o p s c f p e i f n r i n o e c c t i e a e n r s a t . e s - Time. of bank. Per cent. Per cent. B. M. Grant, manager Gov- 1 year with Alexander Brown & Co., Balti- 2,400 2,700 3,000 6,000 122.2 3 years 100.0 2 year. ernment securities sales more, Md.; 1 year with Liberty loan comdepartment. mittee for Maryland. E. C. French, manager 16 years with National Nassau Bank; 3 years 2,500 3,000 4,800 6,000 100.0 4 years 25.0 1 year, 9 months. custody department. with Irving National Bank (paying teller). James Rice, manager Gov- 7 years with Ward Line (accountant) . .. 1,700 1,800 4,500 5,500 205.5 . . .do. 22.2 1 year, 4 months. ernment-bond depart- w ment. S. S. Vansant, manager 11 years with Chemical National Bank 1,100 1,500 5,000 5,000 233.3 5 years, 7 months 7 months. discount department. E. L. Dodge, manager au- 16 years examiner and special deputy, New 4,200 5,000 6,500 6,500 30.0 1 year, 4 months 9 months. diting department. York State banking department. Pierre Jay, Federal reserve Commissioner of banking, State of Massachu- 16,500 16,000 16,000 30,000 87.5 7 years 87.5 7 years. agent. setts; Bank of the Manhattan Co. (vice president). Shepard Morgan, assistant 2J years secretary to department of finance, 7,500 11,000 11,000 15,000 36.4 2 years, 2 months.. 36.4 2 years, 2 months. Federal reserve agent. city of New York, $6,000; 14 months deputy controller, city of New York. BUFFALO BRANCH. W. W. Schneckenburger, 5 years with Wyoming County National Bank; 4,000 4,800 4,800 7,500 56.3 2 years 56.3 2 years. manager Buffalo branch. 5 years with Wyoming County Banking Co.; and Pavilion Banking Co. (cashier and manager). Halsey W. Snow, cashier 17 years with National Commercial Bank, Al- 1,800 2,400 3,400 4,800 100.0 2 years, 7 months.. 41.2 1 year, 4 months. W bany (assistant transit manager). O -OLlJj.ct.lU LJI dllt/11. 10 years with National Bank of Commerce, 2,800 2,400 3,600 3,600 50.0 2 years, 4 months . 4 months. > Claifnfotr d cBalsahkieers lee, Bausfsfaislto- Rochester (assistant cashier). branch. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 485 Percentageof officers' salaries to total resources, Federal reserve banks (including branches). Per cent. Boston 0. 023 New York 024 Philadelphia 027 Cleveland 025 Richmond 046 Atlanta • 047 Chicago 024 St. Louis 051 Minneapolis 050 Kansas City 042 Dallas 074 San Francisco 036 Officers' salaries for Philadelphia, St. Louis, and San Francisco are as of June 30, 1920, and were obtained from the cards sent in by the banks in connection with the pension study. The resource figures for these three banks are as of June 25,1920, the nearest weekly report date. All other figures are as of December 30, 1920. New York City banks. Per cent. Bankl 0.36 Bank 2 22 Bank 3 27 Bank 4 068 Bank 5 15 Bank 6 13 Bank 7. 29 Percentage of total pay roll represented by officers salaries. Exclud- Including Federal reserve banks. branches. branches. Boston.. 11.0 New York 9.5 9.6 Philadelphia l 10.9 Cleveland 11.7 10.7 Richmond 15.5 14.6 Atlanta 19.1 21.2 Chicago .. 10.5 9.8 St Louis x 12.2 Minneap olis. 12.8 Kansas City. . 9.5 9.3 Dallas 14.9 14.9 San Francisco 1. 11.1 11.0 1 Total salaries for these banks were obtained from statements (as of Oct. 1,1920, in the case of Philadelphia and St. Louis, and as of June 30.1920, in the case of San Francisco) sent in by the banks in connection with the pension study. Officers' salaries for these banks were obtained from the pension record cards and are as of June 30,1920. Figures for the St. Louis bank, exclusive of branches, are not available. Figures for all banks except those markedx are as of December 31,1920. New York City i Per cent. Bank 1 25 Bank 2 21J Bank 3 3 38 Bank 4 [ 20 Bank 5 30 Bank 6 33j Bank 7 32 2 Figures as of Jan. 1,1921. 85227°—22 32 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

'486 REPORT OF THE FEDERAL RESERVE BOARD. Comparative statement showing ratio of officers to employees in Federal reserve bank. 1 Number Number Ratio of officers to Bank. of em- of employees. ployees. officers. Boston 763 13 1 officer to 58 employees. New York 2,734 34 1 officer to 80 employees. Philadelphia1 851 13 1 officer to 65 employees. Cleveland 628 14 1 officer to 44 employees. Richmond 474 13 1 officer to 36 employees. Atlanta 273 13 1 officer to 21 employees. Chicago 1,262 36 1 officer to 35 employees. St. Louis is 877 22 1 officer to 39 employees. Minneapolis 447 12 1 officer to 37 employees. Kansas City 529 12 1 officer to 44 employees. Dallas 460 15 1 officer to 30 employees. San Francisco12 1,015 34 1 officer to 29 employees. Representative New York City banks: Bankl. 4,259 74 1 officer to 57 employees. Bank2.. 3,222 122 1 officer to 26 employees. Bank 3.. 946 32 1 officer to 29 employees. Bank 4 „ 726 14 1 officer to 51 employees. Bank5... 1,093 37 1 officer to 29 employees. Bank 6... * 490 20 1 officer to 24 employees. Bank 7 1,054 73 1 officer to 14 employees. Bank 8 938 26 1 officer to 36 employees. 1 Figures for these banks were obtained either from (a) figures compiled by the several banks as of Oct. 1, 1920, for the pension study or (b) figures sent in by the banks in connection with the personnel study. In all cases the larger of these two figures has been used. 2 Figures for St. Louis and San Francisco include branches. Branches are not included in the case of other banks. * Figures as of last week of December, 1920, or first week of January, 1921. MEETING OP OFFICERS IN RESPECT TO CONTROL OF EXPENSES. On June 13 a special meeting of officers was held, called by Gov. Strong, at which the subject of controlling the expenses of the bank was discussed and certain instructions and isuggestions were given by Gov. Strong to those present. On September 16 a second special meeting of officers was held, called by Gov. Strong, for the purpose of giving the officers an opportunity to report the progress made and the plans formulated pursuant to carrying out the instructions given at the first meeting. Every department of the bank was represented and each officer made a report stating the methods followed in controlling expenditures and specifying economiea that had been effected as compared with the expenses for the years 1919 and 1920 and outlining the plans that had been formulated toward further economies that might be effected without sacrificing safety, efficiency, and service to member banks. Special consideration was given to the following subjects: (a) Controlling expenditures for supplies, material, and equipments; first, through the authority of approval or disapproval of requisitions vested in controllers and managers, and, second, by the final examination given to all requisitions by the department of methods and supplies. (b) Controlling expenditures for salaries; first, by the consideration of work requirements on the part of managers and, second, by the transfer of employees from departments from which they can be spared to departments in which the volume of work has increased, thereby avoiding additions to the total force of the bank, and, third, by surveys of departments by the committee on procedure, in order to obtain an independent opinion as to the number of persons required. (c) The making of a special study of statements and reports prepared, with a view to reducing to a minimum the number prepared; first, by eliminating those which do not contain information of vital importance and, second, by consolidating and standardizing those which are deemed to be essential. (d) Controlling the cost of electric light by constant care on the part of the operating officers and chiefs of divisions and also by independent inspection of the bank's premises. At the close of the meeting Gov. Strong informed the officers that a subsequent meeting would be held, approximately three months from September 16, for reconsidering the subject of controlling the expense account of the bank, with particular reference to the progress made in carrying out plans for effecting further economies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 487 A schedule based on the reports made is attached hereto, showing the economies effected by certain departments during the first six months of 1921, as compared with the expenses of operation for the years 1919 and 1920. The departments that do not appear in the schedule are those which did not report specific savings; in some of these, such as the legal, foreign, and investment departments, material savings probably can not be made; in others, such as the cash department, the volume of work has greatly increased. Plans for effecting economies in the near future are outlined in several of the reports. Discount department—Loan function. Salaries, month of December, 1920 $14,344. 02 Salaries, month of August, 1921 11,828. 88 Monthly savings 2,515.14 Annual saving 30,181. 68 Check department—Collection function. Transit division.—While the total cost of the transit division has increased each year, the unit cost has decreased as follows: Number Unit cost Year. of items Total cost. per 1,000 handled. items. Cents. 1919 4B, 778,466 $602,704.08 12.36 1920 55,839,481 616,908. 45 11.05 6 months, 1921 30,756,324 306,801.99 9.98 At the unit cost of 1919 (12.36 cents), the total cost for the first six months of 1921 would have been $380,148.16, or $73,346.17 more than the actual cost. At the unit cost of 1920 (11.05 cents), the total cost for the first six months of 1921 would have been $339,857.38, or $33,055.39 more than the actual cost. Incoming mail division.—While the total cost of this division has increased each year, the unit cost has decreased as follows: Number Unit cost Year. of items Total cost. per 1,000 handled. items. Cents. 1919 7,387,433 $114,405. 23 15.49 1920 11,961,039 167,509. 48 14.00 6 months 1921 7,537,966 87,618.03 11.62 At the unit cost of 1919 (15.49 cents), the total cost for the first six months of 1921 would have been $116,763.09, or $29,145.06 more than the actual cost. At the unit cost of 1920 (14 cents), the total cost for the first six months of 1921 would have been $105,531.52, or $17,913.49 more than the actual cost. Collection department. Number Cost Total Division. of items, on basis of actual Saving. 1921. 1920. cost. Government check 6,521,348 $20,998. 74 $24,758. 49 1 $3,759.75 Coupon collection. 178,132 78,762. 85 37,714. 65 41,048. 20 City collection 1,962,506 75,262.11 59,615.92 15,646.19 Country collection. 423,948 154,516. 38 148,120. 91 6,395.42 i Increase, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

488 REPORT OF THE FEDERAL RESERVE BOARD. Auditing department. On January 1, 1921, the number of employees was 124 and the salaries in effect amounted to $204,940 per annum. On September 15, 1921, the number of employees was 92 and the salaries in effect amounted to $176,580 per annum. In order to perform the balance sheet examinations the regular force of 92 people will have to be temporarily increased twice a year, at an estimated cost of $8,200 per annum, making the total estimated annual salary cost, $184,780, or $20,000 less than the salaries in effect January 1, 1920. Government securities sales department. Estimated cost: First six months, 1921 $70, 000 Last six months, 1921 14, 000 Reduction 56, 000 Reduction on annual basis 112,000 Government bond department. Since July 1 the number of clerks in the department has been reduced by 66, whose salaries amounted annually to. $95, 299. 68 Floor space has been released, costing annually 5, 914. 00 Total saving 101, 213. 68 Methods and supplies department. Purchasing division and expense division.—The force of the purchasing division has been reduced by three people and that of the expense division increased by one person during the last few months. EXHIBIT G. FEDERAL RESERVE BANK OF NEW YORK, October 26, 1921. Hon. W. P. G. HARDING, Governor Federal Reserve Board, Washington, D. C. SIR: The board of directors of the Federal Reserve Bank of New York, having been requested by the Federal Reserve Board to present to it a statement setting forth the basis upon which the scale of salaries of the bank has been determined, hereby respectfully submits the following: Nature and organization of the Federal reserve banks.—The 12 Federal reserve banks are separate and distinct corporations chartered under the provisions of an apt of Congress. Their stock is owned not by the Government or the public but by national banking associations, State banks, and trust companies, all of which are private corporations owned by private citizens. With the exception of a few specified and optional open-market purchases, the Foderal reserve banks are not permitted to have direct transactions with the public; they may deal only with their stockholding member banks and with the Government of the United States, for which they act as fiscal agents. Consequently {he great majority of the transactions of the Federal Reserve Bank of New York are with its member banks, which contribute the entire capital stock of the bank, provide about 95 per cent of its total deposits, and to which about 80 per cent of its loans or discounts are made. It is apparent, then, that the member banks have a very real and direct interest in the efficient and safe management of the Federal reserve bank of which they are stockholders. Congress recognized this interest and provided in the act that of the nine directors of each reserve bank six should be elected by the member banks, the other three being appointed by the Federal Reserve Board. Of the six elected by the member banks, three must be bankers and the other three must be engaged in commerce, agriculture, or some other industrial pursuit, representing the interest which business and agriculture also have in the effective management of the reserve bank. Responsibilities of directors.—The act provides that the reserve bank "shall be conducted under the supervision and control of a board of directors.'' It requires thedirectors "to perform the duties usually appertaining to the office of directors of banking associations." It gives them all powers necessary "to carry on the business of banking," including the power " to appoint * * * such officers and employees Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 489 as are not otherwise provided for in this act." It is quite evident from the provisions of the act and the discussions in Congress at the time of its passage that the Federal reserve banks were expected to be conducted not merely as mechanical agencies for the dispensing of credit, but as banking institutions exercising wide powers and discretion and intrusted with large responsibilities. Besides making loans to their member banks they were expected to furnish the country with an elastic currency, a matter of vital importance to every individual and every business undertaking in the country. They were expected to develop more scientific and economical methods of collecting checks, notes, and drafts, of transferring funds throughout the country, and of clearing the balances resulting from these transactions. They were expected to develop and support a discount market through which bankers' acceptances drawn to facilitate our foreign and domestic trade would find a ready sale and through which, at times of heavy credit requirements, foreign banking funds would readily flow to this country. They are given broad powers to deal in gold at home or abroad, and to appoint agents and maintain accounts in foreign countries in order that they may have a steadying influence on the periodical movements of gold to and from the United States.' As fiscal agents for the Treasury Department they have been able to assist the Treasury in conducting the finances, managing the public debt, and maintaining the credit of the United States, and have been instrumental in creating an open market for Treasury certificates of indebtedness, thereby greatly facilitating their sale. Finally, as custodians of the gold reserves and the ultimate credit power of the country, they are expected at all times, and particularly in sudden emergencies, to administer their trust in such a manner as to insure the maintenance of the gold standard in the United States and to prevent the periodical panics from which the country has suffered so severely in the past. The development and management of such an institution, haying responsibilities of a much wider nature than those of the member banks, requires the selection as officers of men trained in banking, with imagination, constructive ability, and sound judgment, courageous and able to lead; men capable not only of administering the routine functions of the bank, involving frequently a turnover of a billion dollars in a single day, and of safeguarding its many billions of dollars in cash and securities, but capable also of the difficult task of formulating and carrying out policies affecting both national and international finance. Appended to this letter is a brief summary showing the enormous volume of some of the routine transactions of the bank, but it may be mentioned here that the total loans and discounts made by the bank since its organization aggregated about $159,000,000,- 000. Policy in appointing officers.—It was recognized by the directors of the Federal Reserve Bank of New York from the outset that the effective organization and development of the bank depended largely upon the character of its personnel, and they have selected as its officers men of banking experience with a view to the assumption and exercise of the wide responsibilities with which it is charged. These officers have organized and are administering a bank with a staff of 2,896, a bank whose resources and transactions are far larger than those of any other bank in the United States. The directors have also from the outset followed the policy of filling vacancies, both official and clerical, as far as possible by promotions from within the staff as the only sound method of developing and maintaining a high esprit de corps throughout the organization. This has been markedly successful, and the rapid growth of the institution during the past few years has afforded unusual opportunities for the display of individual initiative and ability, which have been recognized by promotion in rank and salary. The period of seven years during which the bank has been in existence has been probably the most difficult period in the history of banking in the United States. It has been no time for experimenting with inexperienced officers or with men who had not demonstrated their ability to command the normal salaries of bank officers. Errors of judgment or defects in the organization might easily have resulted in losses far exceeding any savings that might have been made through the payment of lower salaries to less competent men to manage the affairs of the bank. Besides carrying on immense routine transactions the officers of the Federal reserve bank of New York have also shown themselves able to grasp and deal with the larger functions and responsibilities of the bank. They have devoted themselves with enthusiasm and single mindedness to their work, have gained the confidence of the member banks and the public, have recommended wise measures and policies, and have shown themselves resourceful in meeting the many new and unexpected situations which have arisen during the past seven years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

490 REPORT OF THE FEDERAL, RESERVE BOARD. Salary policy.—In order to procure and retain officers capable of discharging these responsibilities the directors from the outset have followed the policy of fixing salaries at a level fairly commensurate with the salaries paid to officers of corresponding rank in the larger member banks in New York City. The range of salaries paid is frequently tested, (a) by comparison with the salaries actually paid by the larger New York City member banks, and (6) by invitations extended to the officers to join the staffs of other banks at higher salaries. Many of the officers have had opportunities to go to other institutions at higher salaries than they receive from the Federal reserve bank and the directors are convinced that the range of officers' salaries is generally below what might be considered their earning power and below the average salaries paid to officers of similar rank in the larger New York City member banks. Many of the officers whose promotion has been the most rapid have been among those most sought after by other institutions at higher salaries. The officers of Federal reserve banks are not engaged in public or governmental service, but, like the officers of national banks, they are private citizens engaged in banking as a means of making a livelihood. Tljey are forbidden to engage in other business, and their only remuneration is the salary paid them by the Federal reserve bank. As long as they serve the bank they have a right to expect remuneration for their services in accordance with the local value of such services. The details of the circumstances and conditions governing the increases in the salary roll of the bank, both official and clerical, and the proportion of officers' salaries to the total salary roll and to the total resources of the bank, which is much less than in the larger commercial banks in New York City, are dealt with very fully in the letter addressed by the governor of the bank to the Federal Reserve Board under date of October 6, 1921, copy of which is attached hereto. The undersigned directors of the Federal Reserve Bank of New York fully appreciate the responsibilities which the law imposes upon them for the successful operation of the bank, for the safe custody of its immense resources, and for the fulfillment of its obligations to the Treasury, to the member banks, and to the public. In addition to carrying on the routine work we must look ahead and prepare for the discharge of the new obligations which are falling upon the Federal Reserve System as a result of our larger participation in world finance. The directors are unanimously of the opinion that the only sound policy for the bank to pursue is to procure and retain men capable of discharging these obligations in the most complete and effective manner, and that to carry out such a policy it is necessary to pay salaries, both official and clerical, which are fairly commensurate with those paid by the larger member banks in the city of New York. Under any other policy the present type of officers could not be retained and the spirit and work of the organization would degenerate. Nothing could be more dangerous to the permanence of the system than to have the Treasury, the member banks, or the public lose confidence in its management. This statement is submitted merely as a brief review of the salary policy of the bank. If at any time information is desired regarding duties, responsibilities, and salaries of individual officer? and employees, the directors will be very glad to furnish it either to the Federal Reserve Board or to some appropriate committee of Congress. Respectfully submitted. JAMES S. ALEXANDER. WM. L. SAUNDERS. PIERRE JAY. CHARLES A. STONE. LESLIE R. PALMER. ROBERT H. TREMAN. GEORGE FOSTER PEABODY. RICHARD H. WILLIAMS. CHARLES SMITH. VOLUME OF SOME OF THE TRANSACTIONS OF THE FEDERAL RESERVE BANK OF NEW YORK DURING 1920. Discounts and advances, 180,462 items, aggregating $50,539,428,847. Acceptances purchased for New York and other Federal reserve banks, 106,237 items, aggregating $2,428,000,000. ' Federal reserve notes and other paper money handled and counted, 558,397,400 pieces, aggregating $2,291,785,688. Shipments of currency and coin, 67,405 shipments. Checks collected, 87,727,000 items,1 aggregating $55,729,013,000. 1 Includes items sent between Buffalo branch and main bank at New York; figures shown in our annual report for 1920 excludes these items. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES OF FEDERAL RESERVE BANKS. 491 Notes and drafts collected, 563,814 items, aggregating $1,994,713,245. Telegraphic transfers of funds, 147,302 transfers, aggregating $17,021,509,734. Balances settled through gold settlement fund, $48,840,900,000. United States Government checks and warrants paid, 10,712,243 items, aggregating $2,437,759,148. Government bond department transactions, 47,797,417 pieces, aggregating $6,955,- 101,000. Total certificates of indebtedness department transactions, including issues and redemptions, $4,897,941,000. Securities handled in custody department for United States Treasury and member banks, $100,759,404,785. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PART II. REPORTS OF FEDERAL RESERVE AGENTS TO FEDERAL RESERVE BOARD. 493 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1—BOSTON. FREDERIC H. CURTISS, Chairman and Federal Reserve Agent. STATEMENT OF CONDITION. A comparison of the balance sheets for December 31, 1920, and December 31, 1921,1 shows the results of liquidation that have occurred during the year. Earning assets, it will be seen, have been reduced from $216,000,000 to $84,000,000; Federal Reserve notes from $289,000,000 to $203,000,000, and the cash reserves have been correspondingly increased from $218,000,000 to $252,000,000, the increase being almost entirely in gold. During the year member banks7 reserve deposits have fallen from $115,000,000 to $111,- 000,000. INCOME AND DISBURSEMENTS. The earnings for the year 1921 reflect the heavy decrease in discount operations and the reduction of rediscount rates. While total earnings in 1920 were $12,000,000, the total earnings for 1921 were reduced to about one-half, amounting to $7,000,000. On the other hand, operating expenses have slightly increased, due in part to the bank's absorbing on July 1 the expenses of the United States Treasury fiscal operations and to an increase in the volume of transactions handled in most of the operating departments of the bank. It should be recognized that the volume of operations—number of items—handled by such departments as the check, time collection, and currency departments have little or no bearing on the discount or investment operations of the bank. These departments, as well as the departments associated with fiscal agency functions, not only yield no income but have been increasing their expense of operation as member banks avail themselves of the facilities which are offered by the reserve bank. Semiannual dividends were paid on June 30, 1921, and December 31, 1921, at the rate of 6 per cent per annum to stockholding member banks. After setting aside $489,000 for depreciation and transferring $772,000 to surplus account, a balance of $3,000,000 was paid to the United States Government as a franchise tax. The ratio of net earnings for the year to average paid-in capital was 54.13 per cent, to average paid-in capital and surplus 17.92 per cent, and to average paid-in capital, surplus, and member banks' reserve deposits 3.20 per cent. LOAN AND DISCOUNT OPERATIONS.2 Loans and discounts during the year have been materially reduced, the reduction in rediscount rates having had little or no influence on the volume of rediscounts offered by member banks. The character of the bank's loans has changed very little, the reduction in commercial loans being proportionate to the reduction in loans secured 1 See Schedule 1. 2 See Schedule 3. 495 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

496 REPORT OF THE FEDERAL EESERVE BOARD. by United States Government obligations. The Boston banks have reduced steadily their loans and rediscounts, and all, with but one or two exceptions, have gone out of debt to the bank during the year. On the other hand, the borrowings of the banks outside of Boston have shown relatively little change during the same period. On December 31, 1920, the bank held $95,000,000 of commercial loans and $78,000,000 of notes secured by Government obligations. On December 31, 1921, it held $38,000,000 of commercial loans and $22,000,000 of notes secured by Government obligations. The daily average loan for the year 1921 was $100,000,000, as against $170,000,000 in 1920. Apart from $11,000,000 of bankers7 acceptances purchased from the Federal Reserve Bank of New York in January, practically no bankers7 acceptances have been acquired from other Federal Reserve Banks, but such acceptances have been purchased in open-market operations. On the other hand, rediscounts of member bank notes have been made by this bank almost continuously throughout the year for Federal Reserve Banks in agricultural sections of the country. OPEN-MARKET OPERATIONS.1 During the past year, open-market operations of this bank—that is, loans or investment operations other than discounts for member banks or other Federal Reserve Banks—have been almost exclusively for the purpose of assisting in broadening the discount market for bankers7 acceptances and United States certificates of indebtedness. The average daily holding of bills in 1921 was something over $9,000,000, as against almost $28,000,000 in 1920. During the year there has been a steadily increasing volume of short-time investment money, which has made a good demand for bankers7 acceptances and United States Treasury certificates of indebtedness. In previous years the bank has had to support the acceptance market to quite an extent by going into the market and buying acceptances for its own account, while this year its investment has been largely limited to assisting dealers, through short advances, in carrying their bill portfolios, these advances being made at the rate at which bills were purchased by them. It is hoped that ultimately there will be developed in Boston a call market similar to that existing in New York, which will assist in carrying acceptances and Treasury certificates for these bill brokers. The dealers7 selling rate for bankers' acceptances has fallen from 6i Der cent for prime bills in January to 4J per cent as the year ends. Savings banks, country banks, insurance companies, trustees, corporations, and individuals have sought investment for their shorttime funds in bankers7 acceptances and certificates of indebtedness, and this has had a tendency to broaden the market and create a demand so steady that more dealers are entering the Boston market. The demand for Treasury certificates has also oeen very great, each new offering of the Treasury Department being largely oversubscribed. In past years the banks have carried allotments made them until the market could absorb the Treasury offerings, whereas this year these Government securities have gone direct to the investor, and the Federal Reserve Bank has been called upon to carry certificates on repurchase agreements for dealers rather than on rediscounts for i See Schedule 3. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1 BOSTON. 497 banks. Demand for these certificates has been so keen that they have been selling most of the time at a slight premium. The ruling of the Federal Reserve Board that six months' bills drawn in connection with foreign transactions are eligible for purchase by the Federal Reserve Banks has brought some of this paper into the market, but in no great volume, investors apparently preferring bills of shorter maturity. BANKERS' ACCEPTANCES. The volume of acceptances originating in the Boston district, while less than in other recent years, has kept up unusually well, when the lower prices for commodities and the general trade recession are taken into consideration. The bulk of acceptances made, so far as can be judged by the record of acceptances handled by the Federal Reserve Bank, was in connection with foreign trade. With the exception of acceptances bought from the Federal Reserve Bank of New York in January, most of the holdings of the bank were on repurchase agreements from dealers. UNITED STATES SECURITIES. The bank's investment in United States Government securities was reduced from $22,000,000 on December 31, 1920, to $11,000,000 on December 31, 1921. This reduction was due to the retiring by the Government of $13,000,000 of Treasury certificates issued under the Pittman Act. Purchases of $900,000 of Victory notes and $1,300,000 of short-term Treasury cerificates were made by the bank in December. RESERVES. The reserve ratio of the Boston bank was for most of the year higher than that of any other Federal Reserve Bank, averaging for the last three months of the year close to 80 per cent. This was brought about through the reduction in loans and in Federal Reserve notes outstanding. The net increase in gold from December 31, 1920, to December 31, 1921, was $31,000,000, the highest point reached being in August, when it amounted to $266,000,000. CURRENCY TRANSACTIONS. The operations of the currency department, while smaller in volume than last year, have been large. The demand for currency, with the let down in general business, has been less, but the work of counting, sorting, and handling Federal Reserve notes as they have been retired from circulation has been unusually heavy. The clerical force of the money department therefore has been only slightly reduced. The volume of Federal Reserve notes in actual circulation has steadily decreased—from $289,000,000 on December 31, 1920, to $203,000,000 on December 31, 1921. During the holiday season, although the decline in the volume of Federal Reserve notes in circulation was not so marked, it still continued, the demand for currency for that period being largely met by paying out silver certificates and United States notes of small denominations furnished by the Treasury Department, the Government desiring again to place in circulation silver certificates withdrawn under the Pittman Act. Federal Reserve Bank notes, i. e., bank bills secured by United Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

498 REPORT OF THE FEDERAL RESERVE BOARD. States Government securities, have been reduced from $20,000,000 on December 31, 1920, to $6,000,000 on December 31, 1921, the Government having paid off and retired $13,000,000 of special 2 per cent certificates issued in connection with the silver transactions of 1918, against which these bank notes had been issued. CHECK TRANSACTIONS. The operations of the transit department have steadily increased in volume each year, regardless of general business conditions. While the total amount in dollars of the checks handled has been somewhat less than last year, the physical number is considerably larger. In 1921 this department handled 50,829,717 checks, of an aggregate amount of $11,651,344,832.08, as compared with 43,821,535 items in 1920, with an aggregate of $14,727,346,341.28. The total clerical force was increased from 204 to 209. The per item cost was reduced from $0.0085 in 1920 to $0.0076 in 1921. There are 133 banks in New England sending their checks direct to this bank for collection, as against 126 in 1920, while 203 member banks in other Federal Reserve districts are sending checks direct to the bank under the direct routing system against 118 in 1920. TIME COLLECTIONS. The collection department—that is, the department handling time collections, such as notes, drafts, acceptances, coupons, etc.—has had a much greater growth than any other department in the bank, the total number of items increasing from 134,787 in 1920 to 319,163 in 1921, the largest increase being in coupons on investment and railroad bonds. The number of member banks which utilized the collection facilities of the bank was 195, as compared with 131 banks in 1920. About 75 per cent of the items handled were collected at par for the depositing banks. The clerical force in this department has increased from 24 in 1920 to 48 in 1921. FISCAL AGENCY OPERATIONS. The total volume of Treasury securities allotted during the year through the Federal Reserve Bank of Boston was $281,000,000, an amount approximately the same as in 1920. Periodical offerings of securities were made by the Secretary of the Treasury as in past years, but whereas in 1920 only loan and tax certificates of short maturities were put out, in 1921 there were two offerings of threeyear notes. A much larger proportion of payments for securities than heretofore was made by banks, through credits on their books instead of cash, and the average time was longer before these deposits were withdrawn into the Federal Reserve Bank by the Treasury Department. The character of collateral deposited by banks against these Government deposits varied little from previous years, the only material change being a smaller amount of commercial notes. Whereas in 1920 certificates did not have a ready market in this district and banks had been urged to subscribe, and several times allotments made to this bank were not filled, the investment demand in 1921 was so great and certificate rates so attractive that every offering brought heavy oversubscriptions, and it has been a problem to make allotments fairly and impartially. During the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT ISTO. 1—BOSTON. 499 year Government certificates and notes were selling at a premium, and the market was so steady and broad that dealers traded in them. The sales of Treasury savings stamps have fallen off considerably, the total for the year being about $1,300,000—less than one-half the sales of 1920. The bond department, which handles deliveries, exchanges, transfers, coupons, etc., of Government securities, has been called upon to handle a volume of items about one-third less than last year, and its operating staff has been reduced, therefore, by 73 clerks. On the other hand, while in past years the bank has been reimbursed by the Government for the expenses of fiscal agency operations, since July 1, 1921, it has been obliged to absorb them. SCHEDULE 1.—COMPARATIVE STATEMENT OF CONDITION. [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, 1921. 1920. 1919. RESOURCES. Gold and gold certificates 7,117 11,800 7,959 Gold settlement fund—Federal Reserve Board. 42,312 40,116 34,351 Gold with foreign agencies 241 Total gold held by bank 49,429 52,157 51,896 Gold with Federal Reserve Agent. 159,910 134,747 73,511 Gold redemption fund 27,746 18,796 26,342 Total gold reserves 237,085 205,700 151,749 Legal tender notes, silver, etc.. 14,675 11,816 4,037 Total reserves. 251,760 217,516 155,786 Bills discounted: Secured by United States Government obligations.. 21,533 78,225 124,529 All other 37,638 95,143 63,510 Bills bought in open market 13,149 20,678 18,649 Total bills on hand 72,320 194,046 206,688 United States bonds and notes 1,488 544 539 United States certificates of indebtedness: One-year certificates (Pittman Act) 8,450 21,436 21,436 All other 1,368 83 369 Total earning assets. 83,626 216,109 229,032 Bank premises 4,740 2,700 1,103 5 per cent redemption fund against Federal Reserve Bank notes. • 422 1,072 1,072 Uncollected items 52,812 57,623 85,424 All other resources „ 359 496 Total resources. 393,719 495,488 472,913 LIABILITIES. Capital paid in. 7,936 7,718 7,107 Surplus 16,483 15,711 8,359 Deposits: Government 8,368 4,561 1,123 Member bank—reserve account.. 110, 760 114,670 117,294 All other 1,086 835 5,843 Total deposits. 120,214 120,066 124,280 Federal reserve notes in actual circulation 202,535 288,780 244,093 Federal Reserve Bank notes in circulation—net liability. 6,277 20,353 20,912 Deferred availability items 39,502 41,762 67,194 All other liabilities/ 772 1,098 988 Total liabilities. 393,719 495,488 472,913 Ratio of total reserves to deposit and Federal reserve note liabilities combined 78.0 144.5 1 Calculated on basis of net deposits and Federal reserve notes in circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES DURING 1921. [Amounts in thousands of dollars.] Reserve Discounted bills. Purchased bills. percentages.* Discounted for member banks Total in this district. Federal Date. a + e ( s i 2 a 1 n s r + 0 e g n 7 ) t - s . ( T 3 h o + el t 4 d a ) l . c R F B o o e e D a u f t d s o h n n i e e s r e k t r r - e r v a s d . e l ( T 2 h o e -3 t l a d ) l . S G m U e o c b v e . u y S e n r r e . t n d - (5 c P ^ e e - n r 4 t ). ( T h 8 o e + t l 9 a d ) l . R B F B o f e e o a r t d s o u n h e e m g e k r r h r v s a . t e l m c ( o h P 7 a p i a u - r n s e 8 k r e n - e ) d . t U s S e t n t i c a e i u t t s e e r . i s d - s T e c r r o a v e s t e - a h s l . p T o d o s e t i - a ts l . R c n i t e r i o s c i o n e t u n e r l . s v a- e Actual ju A st d e - d.2 Obligations. 10 13 Jan. 7. 195,961 157,265 11, 873 145,392 63,746 43.8 16,615 16,615 22,081 229,047 119,702 281,372 59.6 62.7 14.. 179, 942 143,433 10, 014 133,419 55,587 41.7 14,514 14.514 21,995 236,513 116,592 272,193 62.9 65.6 21. 173, 994 134,188 9,844 124,344 64 722 52.1 17,746 5,049 12,697 22,060 242, 887 118,012 266,770 64.4 68.4 28- 168, 814 124, 938 4,275 120,663 56,135 46.5 21, 881 10,672 11,209 21,995 244,363 113,756 265,277 65.3 69.3 Feb. 4. 163,894 122,148 3,990 118,158 52, 806 44.7 19, 752 7,368 12,384 21,994 248, 724 115, 296 264, 731 66.5 69.6 11. 172, 224 129,611 1,925 127,686 59, 393 46.5 20, 520 6,005 14.515 22,093 238,180 117, 058 261, 954 64.0 66.1 18. 170, 111 133, 965 133,965 61,109 45.6 14,093 1,182 12,911 22,053 244,206 117,572 264,504 64.9 65.2 25. 173,161 135, 585 135, 585 58,205 42.9 15,518 1,132 14,386 22,058 243,815 118,073 265,717 64.3 64.5 Mar. 4. 178, 306 140, 846 140,846 59,062 41.9 15,432 906 14,526 22.028 231,327 113,017 267,478 62.1 62.3 11- 180, 560 145, 521 145,521 60, 455 41.5 13,010 831 12,179 22.029 227, 913 113,827 265,207 61.3 61.5 lS. 174, 874 141,417 141,417 68,936 48.7 11, 431 831 10,600 22,026 230,331 112,576 261,596 61.6 61.8 25.. 181,923 149, 692 149,692 69,248 46.3 10, 221 258 9,963 22,010 225,791 118,619 259,837 59.7 59.7 Apr. 1- 178,225 147,629 147,629 63,338 42.9 9,431 9,431 21,165 223,984 113,452 258,547 60.2 8.. 151,480 123, 732 123, 732 54,361 43.9 6,405 6,405 21,343 250,142 112,637 257,265 67.6 15.. 136,227 107, 524 1,500 106,024 45,270 42.7 7,233 7,233 21,470 260,188 108,702 256,329 71.3 71.7 22. 134, 748 106, 586 2,000 104,586 43,161 41.3 6,866 6,866 21,296 270,406 116,190 259,859 71.9 72.4 27. 127,666 99, 427 2,600 96,827 40,834 42.2 7,113 7,113 21,126 270,946 110,990 258,946 73.2 73.9 May 4 } 128,493 100,185 2,910 97,275 36,123 37.1 7,130 7,130 21.178 269,157 109,487 259, 260 73.0 73.8 11 - I 127,008 99, 868 3,475 96,393 37,881 39.3 5,924 5,924 21,216 268,159 110,169 257,752 72.9 73.8 18 1 136,345 92,838 4,906 87,932 35,470 40.3 12, 798 12,798 30,709 259,341 111, 093 256,040 70.6 72.0 25 ' 128,484 95, 824 3,542 92,282 39,724 43.0 12, 555 12,555 20,105 263,390 109,410 254,485 72.4 73.4 June 1 | 142,599 111,113 5,500 105,613 38,699 36.6 11, 307 11,307 20.179 254,498 111,435 257, 700 68.9 70.4 8 ! 136,777 104, 230 2,500 101, 730 35,607 35.0 12, 754 12,754 19,793 254, 541 109, 256 256,525 69.6 70.3 15 i 139.371 91,481 7,408 84,073 33,639 40.0 10,051 10,051 37,839 255,089 119,497 251,032 68.8 70.8 2 2 9 2 1 12 2 0 5 " , , 3 7 4 2 0 5 9 9 7 1 , , 9 5 0 2 5 1 4 8 , , 1 4 2 2 5 5 8 87 9 , , 0 7 9 8 6 0 3 3 5 3 , , 3 9 2 9 4 7 3 3 9 8 . . 6 7 8 9 , , 2 14 2 6 0 8 9 , ,1 2 4 2 6 0 1 1 9 9 , , 5 6 9 7 9 4 2 2 5 6 7 3 , , 4 9 3 9 6 1 1 10 0 6 6 , , 4 5 7 5 8 9 2 24 5 9 0 , , 7 3 8 1 4 7 7 7 2 4. . 0 3 7 7 4 5 . . 6 1 July 1 6 3. ! 1 1 1 0 3 6 , , 2 4 7 7 1 1 8 79 5 , , 9 8 0 3 9 9 1 1 6 0 , , 4 4 5 4 0 5 6 7 3 5 , , 4 3 6 8 4 9 2 27 7 , , 6 9 3 0 1 4 4 3 3 7 . . 5 0 7,905 6 7 , , 8 9 0 0 9 5 1 1 9 9 , ,7 5 5 2 3 7 2 27 7 6 6 , , 3 5 2 9 7 7 1 11 1 1 2 , , 9 8 7 6 3 8 2 2 5 5 1 4, , 1 1 6 4 9 1 7 7 5 6 . . 4 1 7 8 8 0 . . 2 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20. 99,975 74, 734 18.287 56,447 25,978 46.0 5,750 5,750 19,491 278,813 109,947 245,906 78.4 83.5 27. 103, 249 78,227 16,136 62,091 29,349 47.3 4,926 4,926 20,096 275,670 111, 764 242,464 77.8 82.4 Aug. 3. 98,566 73,088 12,645 60,443 26,032 43.1 5,286 5,286 20,192 282,656 110,732 246,082 79.2 82.8 10. 102,221 76,442 13,991 62,451 29,394 47.1 6,023 6,023 19, 756 278,522 113,294 244,520 77.8 81.8 17. 105, 857 80,753 17,061 63,692 30,645 48.1 6,634 6,634 18,470 269, 848 110,824 241,611 76.6 81.4 24. 113,999 90,858 25,618 65,240 26,345 40.4 4,997 4,997 18,144 261, 167 110,240 241,022 74.4 81.6 31. 122,510 100,323 26,716 73,607 30, 738 41.8 4,174 4,174 18,013 250, 914 109,939 241,411 71.4 79.0 Sept. 7., 119,177 97,624 24,103 73,521 27.301 37.1 3,246 3, 246 18,307 262,497 115,216 244,906 72.9 79.6 14.. 117,217 95,551 27,058 68,493 26, 550 38.8 3,445 3,445 18, 221 258,713 113,518 241,999 72.8 80.4 21.. 109,462 86,615 21,093 65, 522 26,083 39.8 3,454 3,454 19,393 262,805 111, 707 238,331 75.1 81.1 28.. 105,347 85,580 22,163 63,417 26,797 42.3 3,795 3,795 15,972 262,303 110,358 234,562 76.0 82.5 Oct. 99,247 78,831 21,840 56,991 21,411 I 37.6 3,241 3,241 17,175 270,040 109,412 234,718 78.5 84.8 11. 93, 785 72,168 16, 894 55,274 20,700 I 37. 4 5 ^7* 5,578 16,039 276,159 111, 679 234,173 79.8 84.7 19. 90,966 71, 800 16,043 55, 757 19,452 I 34.9 4, 500 4,500 14,666 275,273 116, 515 231,940 79.0 83.6 •26. 88,075 69,166 18,454 50, 712 20.302 40.0 4,613 4,613 14,296 275, 397 117,182 224,159 80.7 86.1 Nov. 2. 89,182 70,817 17,071 53,746 23,482 43.7 5,078 5,078 13,287 272,918 121,820 220,585 79.7 84.7 9.. 75,924 59,523 12, 918 46,605 20,281 43. 5 4,260 4,260 12,141 275,930 114,951 217,944 82.9 86.8 ^ 16. 85, 897 65,423 6,741 58,682 21,711 37.0 8,856 8,856 11,618 263,159 118, 582 215,458 78.8 80.8 O 23.. 84, 340 66,327 9,128 57,199 23,646 41.3 5,640 5,640 12,373 265, 810 116,616 213,519 80.5 83.3 & 30.. 97,093 75,448 10, 246 65,202 27, 737 42.5 8,791 8,791 12,854 250,168 118,595 209,413 76.3 79.4 h3 Dec. 7.. 77, 843 58,577 6,175 52,402 25,981 49.6 5,778 5, 778 13,488 264,364 114,811 208,261 81.8 83.7 W 14.. 86,613 66,602 1,000 65,602 25,493 38.9 8,299 8,299 11,712 263,372 121, 745 207,668 80.0 80.3 £ 21.. 91,347 67 956 67, 956 24,881 36.6 10,929 10,929 12,462 246, 529 111,804 208,932 76.9 CJ 28.. 94,350 68,933 68,933 26,515 38.5 12,140 12,140 13,277 245,726 116,767 206.026 76.1 1 Prior to Mar. 18, net deposits as given below were used in calculating reserve percentages: Jan. 7 $102,825,000 \ Feb. 4 $109,186,000 | Mar. 4 $105,136,000 14 103,843,000 i 11 110,277,000 i 11 106,585,000 2 2 1 8 '. 1 1 1 0 0 8 , , 3 8 6 4 4 2 , , 0 0 0 0 0 0 I J 2 1 5 8 . . 1 1 1 1 1 3 , , 7 7 9 53 8 , , 0 0 0 0 0 0 I o w 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. Ul A blank in this column indicates that no accommodation was extended to or received from other Federal Reserve Banks. 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

502 REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK OF BOSTON MOVEMENT OF EARNING ASSETS DURING 1920 AND 1921 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 80 UNITED STATES SECURITIES 60 A h 1 20 w H fa 0 vA VAA ///A '//AVA\ '//A//Yf\ 80 PURCHASED BILLS 40 i\ \ * i V/Ammw%, W, WW ft 'TV/ft? 2229B BBSesc 260 260 DISCOUNTED BILLS 240 iSEE NOTE BELOW/ 240 220 200 180 180 160 140 140 120 100 80 40 19EO 1921 A - Paper secured, by U. S. Government obligations discounted for banks in district. B - Total paper discounted.for banks in district. C - Total discounted paper held. Digitized for FRASEeR between lines B and C represents paper discounted for other Federal Reserve banks http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

503 DISTRICT NO. 1—BOSTON. FEDERAL RESERVE BANK OF BOSTON DEPOSITS, F. R.NOTE CIRCULATION, CASH RESERVES, AND RESERVE RATIOS, 1920-1921 PER CENT PER CENT TOO 30 80 A; 70 f 60 Ay f K 50 A V ! V 1 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 200 snrs 200 DEIPO 150 150 too i 'k i 50 W w A m ''//A,V m ?A'///A VAW, i 50 WA. V//A,Y/A 7/A 400 400 F.R.NOTE CIRCULATION 350 350 300 /77, 250 i A m1 A/, p.A '// / /A A,fir, y/// % ' , 4. p % , W/, v/y, m 250 i 1 1 w %f§ % t50 p> w>% i %I %p % WA m W, w '%%1 f/A % %V/Aw,WA w WA I WA y 4WA MV/A %• 500 DEPOSIT AND F. R.NOTE LIABILITIES.'C. AND TOTAL RESERVES.'C" 1920 1921 Adjusted percentages are calculated after reducing or increasing reserves held by the amount of occonsaodation received from or extended to other Federal Reserve banks. The deposit curve Is based, on Mnet deposits1*" up to itaroh 11, J.921. and oa "total deposits" thereafter. 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 S b e G l c m i o u g v r e a e e n t d i r t o n b n - y 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 . - l t i A u v p r g e a a - r p l s i c e t a o u r n . c l d - k Allother. Total. a a T c n r c c a e e d p s e t . - 1921 1919 c H January 495, 304,636 51 105 193 190,853 11,224 875 507,062 i 381,991 395,343 February 523. 281,794 101 82 97 241,753 23,064 1,290 546,891 I 454,884 376,082 O March 731, 434,212 362 106 297,030 23, 788 1,970 755,498 i 486,959 344,636 April 367, 238,343 70 207 128,400 13,278 965 380,298 ! 375,195 522,481 May 372, 248,080 186 295 123,757 25,436 3,842 397,754 | 450,431 462,431 Tune 257, 169,057 378 523 87,494 14,361 1,040 271,813 440,646 394,712 July 196, 99,234 80 460 96,461 11,033 870 207,268 j 309,053 431,033 August 294. 175,990 210 500 118,082 15,127 567 309,909 i 411,629 287,944 September 330,076 ! 162,837 135 363 166,741 10,639 185 340,715 417,178 334,405 October 250,223 ! 87,941 81 344 | 161,857 13,880 827 264,103 i 366,431 429, 898 November 318,163 I 81,681 98 469 I 235,915 24,888 3,005 343,051 i 483,360 490,900 December 317,116 ! 77,282 118 470 239,246 24,985 3,624 342,101 573,241 566,317 Total, 1921 4,454,760 i 2,361,087 1,905 | 4,027 ] 2,087,589 211,703 192,643 19,060 4,666,463 1920 4,876,554 ' 4,074,030 22,129 4,662 f 775,733 304,444 303,082 1,362 5,180,998 1919 4,675,398 I 4,486,154 4,986 10,820 j 173,438 360,784 356,109 4,150 |.... 5,036,182 K Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT XO. 1 BOSTON. 505 SCHEDULE 4.—EARNINGS AND EXPENSES. 1921 1920 1919 Discounted bills $6,007,117 $10,031,301 $6,003,252 Purchased bills 515,192 1,613,012 1,077,691 United States securities 415,931 554,172 369,457 Deficient reserve penalties. 13,778 41,783 27,836 Miscellaneous 16,644 32,985 19,347 Tcial earnings. 6,968,662 12,273,253 7,497,583 Salaries- CURRENT EXPENSES. Bank officers 135,500 116,600 105,097 Clerical staff 905,811 781,904 606,345 Special officers and watchmen 31,648 20,988 12,278 All other 35,233 7,207 12, 111 Governors' conferences 461 315 244 Federal Reserve Agents' conferences 118 400 109 Federal Advisory Council 200 408 500 Directors' meetings 9,263 9,529 7,351 Traveling expenses * 8,436 9,046 8,708 Assessments for Federal Reserve Board expenses 57,218 52,584 45,619 Legal fees 1,200 3,723 . 3,817 Insurance (life, fidelity, casualty, workmen's compensation, and general liability) 18,054 23,487 19,104 Banking house: Taxes and fire insurance 53,468 Light, heat, and power 3,110 R A e ll p a o i t r h s e a r nd alterations 1,906 108,428 95,414 Rent, including light, heat, and power, and minor alterations.. 95,637 Fire insurance—furniture and equipment 1,034 Printing and stationery 99,264 63,667 41,478 Telephone 16,365 12,292 11,855 Telegraph 10,960 10,314 7,958 Security shipments 9,436 Currency and coin shipments 106,907 187,891 160,861 Postage and expressage (other than on money and security shipments) 73,844 Furniture and equipment 73,692 24, 585 43,748 Federal Reserve currency: Original cost, including shipping charges 302,264 345,151 285,917 Cost of redemption, including shipping charges 88,526 112,162 31,774 Taxes on Federal Reserve Bank note circulation 56,749 82,000 89,422 All other expenses 42,703 65,609 82,115 Total current expenses.. 2,239,007 2,038,290 1,671,825 Current net earnings 4, 729, 655 10,234,963 5,825,758 PROFIT AND LOSS ACCOUNT. Earnings 6,968,662 12,273,253 7,497,583 Current expenses. 2,239,007 2,038,290 1,671,825 Current net earnings.. 4,729,655 5,825,758 Additions to current net earnings: Amounts deducted from Reserve for depreciation on United States bonds 43,681 Assessments account expenses Federal Reserve Board previously charged to profit and loss .38,666 All other 29,248 Total additions. 67,914 Deductions from current net earnings: Depreciation allowances on bank premises 489,000 Reserve for depreciation on United States bonds 28,162 Assessment account expenses Federal Reserve Board. All other 6,877 2,151 9,711 Total deductions 495,877 30,313 48,377 Net deductions from current net earnings 448,302 2 37,601 48,377 Net earnings available for dividends, surplus, and franchise tax. 4,281,353 10,272,564 5,777,381 Dividends paid 473,109 447,266 414,447 Transferred to surplus account 772,324 7,351,799 5,362,934 3,035,920 2,473,499 Franchise tax paid United States Government : 1 Other than those connected with governors' and agents' conferences and meetings of directors and of the advisory council. 2 Net additions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

506 REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE 5.—CURRENCY RECEIPTS FROM AND PAYMENTS TO MEMBER AND NON- MEMBER BANKS. fin thousands of dollars.] Receipts. Payments. Total receipts. Total payments. From To Month. From non- To nonmember mem- member mem- 1921 | 1920 1919 1921 1920 191a banks. ber banks. ber banks. banks. January 64,023 5,320 37,409 1,742 ! 69,343 54,612 47,000 39,151 38,496 17,173 February.... 43,369 3,216 47,773 1,907 46,585 31,523 28,280 49,680 50,323 26,440 March 58,599 4,072 58,190 2,139 ! 62, 671 47,497 33,842 60,329 50,773 26,579 April 55.910 4,429 58,705 1,880 i 60,339 52,936 40,293 60,585 44,812 27,674 May.. 57,269 3,077 58,568 2,098 i 60,346 52,579 47,230 60,666 55,069 17,761 J J u u l n y e 5 6 8 0 , , 0 9 0 4 1 8 3 5 , , 9 2 4 6 0 9 5 5 8 7, , 6 9 0 9 3 4 1,0 4 9 9 2 7 i I 6 6 4 3, , 2 8 7 8 0 8 6 6 4 4 , , 9 2 1 2 6 1 4 4 7 1 , , 2 98 3 7 0 5 5 8 9, , 4 6 9 9 1 5 6 6 0 3 , , 1 5 4 8 9 3 3 3 1 7 V , 4 5 0 3 8 6 August 59,020 4,895 59,931 411 i 63,915 61,088 38,688 60,342 73,509 38,885 September... 56.911 4,627 58,745 452 I 61,538 64,130 39,525 59,197 74,090 37,980 October 60,764 4,428 56,694 403 I 65,192 68,030 53,832 57,097 55,688 41,164 November.. 60,624 4,403 57,571 457 j 65,027 62,671 36, S90 58,028 55,530 39,076 December... 68,326 5,083 78,564 542 ! 73,409 74,776 51,056 79,106 66,002 60,664 Totaf, 1921 703,764 52,759 688,747 |13,62O ] 756,523 702,367 1920 643,782 155,197 683,881 4,743 I 698,979 688,624 1919 462,153 43,700 400,319 2,022 ! 505,853 402,340 SCHEDULE 6.—OPERATIONS OF FEDERAL RESERVE CLEARING SYSTEM. [Figures include cash items only.] [Numbers in thousands; amounts in thousands of dollars.1 Items drawn on banks in own district. Items drawn on Items forwarded Located in Federal Located outside Treasurer of to other Federal Reserve Bank Federal Reserve United States. Reserve Banks and Period. city. Bank city. their branches. N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. Jan. 1-15... 340 299,927 1,552 200,241 66 8,002 74 26,839 Jan. 16-Feb. 15 654 531,319 2,788 340,211 96 20,797 146 47,654 Feb. 16-Mar. 15 659 451,319 2,750 312,344 113 25,014 148 43,514 Mar. 16-Apr. 15 751 537,526 3,300 380,428 144 28,838 161 55,327 Apr. 16-May 15 652 505,811 3,108 350,289 150 19,629 143 44,590 May 16-June 15 703 532,196 3,445 379,946 162 22,980 169 49,225 June 16-July 15 705 539,515 3,320 380,129 156 20,771 162 53,699 July 16-Aug. 15 695 508,546 3,178 356,790 124 17,058 154 45,891 Aug. 16-Sept. 15 668 480,900 3,094 348,262 133 17,151 160 46,941 Sept. 16-Oct. 15 743 550,618 3,304 378,324 148 16,321 175 53,476 Oct. 16-Nov. 15 740 576,987 3,513 401,442 151 20,836 189 48,562 Nov. 16-Dec. 15 779 569,403 3,512 390,345 164 19,220 197 47,218 Dec. 16-Dec. 31 380 312,637 1,831 198,928 81 9,482 100 27,927 Total, 1921 8,469 6,396,704 38, 695 4,417,679 1,688 246,099 1,978 590,863 1920 7,804 8,055,207 33,258 5,362,447 1,457 345,998 1,303 963,694 1919...i. 5,942 7,295,405 27,427 4,109,154 2,204 724,045 661 926,200 Total number. Total amount. Period. 1921 1920 1919 1921 1920 1919 Jan. 1-15 2,032 1,828 1,344 535,009 647,760 498,199 Jan 16-Feb 15 3 684 3 137 2,719 939,981 1,138, 735 1,009,222 Feb. 16-Mar. 15 3; 670 3,247 2,479 832,191 1,066,722 793,239 Mar. 16-Apr. 15 4,356 3,708 2,974 1,002,119 1,303,914 1,036,316 Apr. 16-May 15 4,053 3,642 2,903 920,319 1,315,941 955,239 May 16-June 15 4,479 3,644 2,949 984,347 1,289,561 1,0(35,610 June 16-July 15 4,343 3,749 3,152 994,114 1,323,838 1,181,817 July 16-Aug. 15 4 151 3 769 3,171 928,285 1,212,993 1,220,656 Aug. 16-Sej)t. 15 . 4,055 3,548 2,836 893,254 1,172,996 1,014,359 Sept. 16-Oct. 15 4,370 3,731 3,098 998, 739 1,249, 723 1,147,538 Oct. 16-Nov 15 4 593 3,908 3,512 1,047,827 1,258,013 1,252,099 Nov. 16-Dec. 15 4,652 3,872 3,303 1,026,186 1,107,964 1,222,378 Dec. 16-Dec. 31 2,392 2,039 1,794 548,974 639,186 718,132 Total, 1921 50,830 11,651,345 1920 "43,822* 14*727*346* 1919 36,234 13,054,804 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. INCOME AND DISBURSEMENTS. A summary of the income and disbursements of the Federal Reserve Bank of New York is given in the following table. A more detailed statement appears as Schedule 4. 1921 1920 EARNINGS. From rediscounts and advances to member banks $30,762,021.40 $49,839,182.52 -From, acceptances owned.. . .. . . 1,829,665.00 8,323,050.37 From United States Government securities owned 1,955,969.96 1,975,648.96 Other earnings 157,282.33 387,439.92 Total earnings 34,704,938.69 60,525,321.77 DEDUCTIONS FROM EARNINGS. For current bank operation 7,076,187. 58 6,350,862.58 Cost of Federal Reserve currency... 1,091,591.96 648,392. 46 For self-insurance and other reserves, depreciation, etc 443,326.95 397,936.09 Total deductions from earnings 8,611,106.49 7,397,191.13 Net income 26,093,832.20 53,128,130.64 DISTRIBUTION OF NET INCOME. Dividends paid 1,608,721.16 1 477,096.58 Added to surplus 3,782 671.10 12 332 523.41 Paid United States Government as franchise tax 20,702,439.94 39,318,510.65 Total 26,093, 832. 20 53,128,130.64 The reduction in the gross income of the bank from $60,525,000 in 1920 to $34,705,000 in 1921 is attributable to a reduction during 1921 of 63 per cent in the bank's earning assets, accompanied by successive reductions in the discount rates from 7 to 4J per cent. The gross income for the month of January was $5,317,399.54 and that for December was $1,323,052.54. The reduction in the earning assets was not accompanied by a corresponding reduction in the volume of the bank's work. The number of employees in the departments of the bank which handle the earning assets has never exceeded 150, as compared with a total of nearly 3,000 employees in all departments. While the decline in earning assets has reduced the work of such departments, the work of others, such as the collection of checks, notes, and drafts, the custody of securities, and the handling of cash, continued to expand during 1921. Also, through lack of appropriation, the Treasury Department terminated on June 30, 1921, the arrangement whereby it had reimbursed the Federal Reserve Bank 507 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

508 REPORT OF THE FEDERAL RESERVE BOARD. for its work in handling Government securities and the expense of such operations, many of them very large, was borne thereafter by the bank. Current expenses are the first charge against income; a dividend to stockholders legally fixed at 6 per cent has been paid covering the entire period of operation, surplus has been increased in accordance with the law, and the remaining profits have been paid as required by law to the Treasury of the United States in lieu of a franchise tax. The amount so paid in 1921 was $20,702,440, compared with $39,318,511 in 1920. LOANS AND INVESTMENTS. During 1921 the loans and investments of the Federal Reserve Bank of New York declined steadily, and in the late autumn reached a level lower than at any time in four years. The total on December 31, 1921, was $385,200,000, as compared with $1,046,000,000 on December 31, 1920. DISCOUNTS AND ADVANCES. By the end of 1921 most of the largest borrowers of the previous year were entirely out of debt at this bank and others had extinguished all but a small portion of their indebtedness. Loans to banks outside the city, particularly those with continuing agricultural demands, were necessarily slower to decline, and the number of member banks borrowing from the Federal Reserve Bank remained fairly constant during most of 1921. The following table compares certain of the more important figures relating to rediscounts and advances for each of the past three years: 1921 1920 1919 Applications received ! 21,461 20,336 28,599 Amount discounted or advanced upon I $30,768,989,922.52 $50,539,428,847.71 $42,449,491,133.87 Number of pieces of paper discounted or ad- ! vanced upon j 149,868 180,462 127,721 Largest piece of paper discounted or advanced! upon j $78,100,000.00 $85,000,000.00 $120,000,000.00 Smallest piece of paper discounted or ad- j vanced upon j $16.72 $14.72 $U.81 Average size of notes discounted or advanced I upon | $205,307.26 $280,055.79 $332,361.09 Beginning July 1, 1921, Liberty bonds and Victory notes were accepted as security for advances and rediscounts at their market value instead of, as previously, at their par value. United States certificates of indebtedness, however, continued to be accepted as security at par. DISCOUNT RATES. The 7 per cent discount rate on commercial paper which was made effective at this bank June 1, 1920, was maintained until May 5, 1921. During that period also the rate on loans secured by Liberty bonds and Victory notes remained at 6 per cent. The preferential rate of 5J per cent on paper secured by United States Treasury certificates of indebtedness was withdrawn, however, on February 5, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2—NEW YORK. 509 1921, in view of the excellent public demand for those securities, which made preferential treatment at the Federal Reserve Bank no longer necessary. The reduction on May 5, 1921, of the discount rate on commercial paper to 6£ per cent followed a gradual improvement during the spring in general credit conditions. A second reduction of the discount rate on commercial paper was made on June 16 to 6 per cent. By this action the rate on loans, however secured, whether by commercial paper, Liberty bonds, Victory notes, or certificates of indebtedness, was made uniform, and in subsequent rate changes this uniformit}?" has been maintained, as follows: July 21, h\ per cent; September 22, 5 per cent; November 3, 4^ per cent. PURCHASED BILLS. During the year this bank's holdings of bankers' acceptances declined as the supply of free funds increased and sought this channel for reemployment. From the high point of $231,300,000, reached on February 28, 1920, the decline to $2,018,000, on July 27, 1921, was strikingly illustrative of changed conditions in the money and discount market. It also reflected a smaller supply of bills. While there are no exact figures to show the total volume of bills in the United States at any one time, close estimates of the volume of bankers' acceptances, and prime commercial bills bearing banking indorsement which circulate in the open discount market may be made from reports furnished to this bank. The following table shows such estimates for the close of each year from 1916 to 1921, inclusive, compared with the amounts owned by the Federal Reserve Banks: Percentage owned by Date. R of e O s N F w e e e r n w v d e e e d r Y B a b o l a y r n k k . Re a O s l e l w r F v n e e e d d B e a r b a n y l ks. o E u a t s s m t t i a m o n u a d n t i e t n d g. a e B l s R l a t e F i n m s e k e d a s r e t v e t r e o d al amount outstanding. 1915 $8 715 000 $23,013,000 • 1916 41,457,000 127,497,000 $250, M0,000 5i. 6 1917 148,125,000 275,366,000 450,000,000 : 61.2 1918 69,323,000 303,673, 000 750,000,000 40.5 1919 ' 191,312,000 585,212,000 1,000,000,000 ! 58.5 1920 109,902,000 255,702,000 1,000,000,000 ! 25.6 1921 . . 47,313,000 114,240,000 600,000,000 19.0 Although the amount of bills outstanding was smaller than during 1920, the volume of transactions or turnover of bills in the open market was not reduced in proportion for the reason that the market was more independent of the reserve banks and bills were more frequently resold in the market rather than to the reserve banks. As a result the same bills were passed to and from the market several times and were not offered to the reserve banks until about to mature, if at all. During 1921 total purchases of bankers' acceptances in the open market by this bank aggregated $1,364,000,000, as compared with $2,573,000,000 in 1920. These total figures include not only bills purchased for the account of this bank, but also considerable amounts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

510 KEPORT OF THE FEDERAL RESERVE BOARD. purchased for the account of other Federal Reserve Banks, for member banks, and for foreign banks. The distribution of purchases is shown in the following table: PURCHASES OP ACCEPTANCES BY THE FEDERAL RESERVE BANK OP NEW YORK. 1921 1920 Pieces. Amount. Pieces. Amount. For the account of this bank. 46,836 $800,000,000 69,961 $1,697,000,000 For account of other Federal Reserve Banks 12,706 194,000,000 36,276 731,000,000 For account of member banks 7,561 59,000,000 4,825 42,000,000 For account of foreign banks. 22,884 311,000,000 4,791 103,000,000 Total 89,987 1,364,000,000 115,853 2,573,000,000 The larger purchases for member banks and for foreign banks were one of the evidences of the increasing investment demand. Under a regulation of the Federal Reserve Board, dated May 6, 1921, bankers' acceptances up to six months' maturity issued in import and export transactions became eligible for open-market purchase by Federal Reserve Banks. Heretofore the maximum maturity eligible for such purchases was three months. The effect of this change has been to facilitate trade with countries where the longer usance is required. The longer bills were so well taken by investors, however, that practically no such bills have been offered to this bank, which has always been ready to purchase them if offered. As a result of the broader investment demand for bills in connection with the reduced volume in 1921, offerings to the Federal Reserve Bank for purchase were mainly of bills having so short a maturity as to make them less desirable for investors to hold to maturity. The following table gives the approximate average maturity of the purchased bills held by this bank at different dates during 1921 and 1920: Date. 1921 1920 Days. Days. Jan 1 27 42 Apr 1 29 33 July 1 11 30 Oct 1 17 29 Dec. 31 15 28 Open-market rates for bankers' acceptances declined steadily during the year. A factor in this decline, aside from the general downward movement of money rates, was the increase in foreign-owned funds held here which sought temporary employment in liquid short-term instruments, such as bankers' acceptances and United States Treasury certificates and loans upon them. A factor operating against still lower bill rates was the competition of Treasury certificates and short-term notes, the income of which is to a certain extent exempt from taxation, whereas all discount on bills is taxable. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2—NEW YORK. 511 The minimum rates at which indorsed bills were purchased by the Federal Reserve Bank of New York for its own account and for account of other Federal Reserve Banks during 1921 were: Short I Ninetybills. I day bills. Jan. 1 to June 14... June 15 to July 20.. July 21 to Sept. 25. Sept. 26 to Oct.3... "2 Oct. 4 to Nov. 2.... Nov. 3 to Nov. 15.. 4* Nov. 16 to Nov. 27. Nov. 28 to Dec. 7... Dec. 8 to Dec. 31... Bills bought for member banks and foreign banks were taken at the market rates of the day of purchase. GOVERNMENT OBLIGATIONS OWNED. Other earning assets consisted of the following groups of Government obligations. (1) One-year special 2 per cent certificates of indebtedness to secure Federal Reserve bank note circulation.—The amount of such certificates held under authority of the Pittman Act was reduced during the year from $59,000,000 to $35,400,000 as the Federal Reserve Bank notes which they secured were replaced by the return to circulation of silver certificates. (2) Special certificates of indebtedness running for a few days.—During 1921 the Treasury had less need of temporary advances and this bank held special certificates of indebtedness covering such advances on 60 days as compared with 137 days in 1920. (3) Certificates of indebtedness under sales contract.—The bank continued to purchase from nonmember banks and bankers such certificates of indebtedness as they found difficulty in carrying, under the provision that they repurchase the certificates within 15 days. With the increased strength of the open market for these issues in 1921, the amounts held by this bank under sales contract averaged much less than in previous years. (4) Investment holdings of certificates of indebtedness and Victory notes.—Small purchases of certificates of indebtedness were made occasionally during the year for investment account. Shortly before the end of the year Victory notes to the amount of $1,065,000 were purchased and on December 31 were turned over to the Government as a portion of the franchise tax. FEDERAL RESERVE CURRENCY. The note circulation of the Federal Reserve Bank of New York, which reached its highest point in the fall of 1920, declined steadily through most of 1921, owing mainly to the lower level of commodity prices and the restricted volume of business. As during the rise in the country's volume of nonmetallic currency, so also during the decline, Federal Reserve notes furnished the principal fluctuating element. Federal Reserve Bank notes declined also, but the volume at all times has been only a small proportion of the total. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

512 REPORT OF THE FEDERAL RESERVE BOARD. COLLECTIONS AND CLEARINGS. The facilities of the Federal Reserve Bank of New York for the collection of checks, notes, drafts, coupons, and bonds and for the transfer of funds were utilized more fully by the banks of the district in 1921 than in any previous year. More banks made use of the system and more items were handled, although the transactions expressed in dollars were somewhat smaller than in 1920. In December, 1921, 628 banks in the Second Federal Reserve District were using the check collection system, compared with 508 in December, 1920. The number of checks handled in a single day reached a maximum on October 14, 1921, when a total of 342,000 were handled—15,000 more than on October 14, 1920, when the previous high figure was reached. Despite the increase in the number of items handled in 1921, the number of employees engaged in the work is about the same as in 1920—about 400. Details "of the year's operations are given in Schedule 6. A number of steps have been taken during the year to make the proceeds of checks collected more quickly available to member banks. The privilege of sending checks on banks in other Federal Reserve districts direct to the Federal Reserve Banks in those districts was extended to additional banks in 1921. A summary of such operations is as follows: In 1920, 150 banks in this district sent checks direct to other Federal Reserve Banks in the amount of $11,955,000,- 000; in 1921, 269 banks in this district sent checks direct to other Federal Reserve Banks in the amount of $9,395,000,000; in 1920, 582 banks in other districts sent checks direct to the New York Reserve Bank in the amount of $8,663,000,000; in 1921, 590 banks in other districts sent checks direct to the New York Reserve Bank in the amount of $6,720,000,000. During 1921 arrangements were made in 11 counties of this district whereby the member banks in those counties forward their local checks to the banks on which they are drawn, and simultaneously advise the Federal Reserve Bank of the amounts. The Federal Reserve Bank, by making appropriate entries on its books, then clears the aggregate of the transactions. This arrangement effects a saving of at least two days in the time required for collecting such local items. The following table shows the counties and the number of banks in each group organized in this manner: Num- County. Group. ber of banks. Delaware, N. Y 1 15 Monmouth, N. J"... 2 23 Tompkins,, Chemung, Tioga, and Broome, N. Y 3 23 Middlesex, N. J. 4 18 Westchester, N. Y 5 22 Otsego, N. Y.. 6 13 Herkimer N Y 7 15 Steuben, N. Y 8 8 Arrangements were also made during the year whereby the members of the Syracuse, N. Y., Clearing House Association settle their balances daily by wire on the books of the Federal Reserve Bank of New York in the same manner as that established in 1920 by the clearing-house banks of Elmira, N. Y., and Binghamton, N. Y. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT XO. 2—NEW YORK. 513 The Northern New Jersey Clearing House Association, established in 1920, was expanded during the past year to include 22 member banks and 5 nonmember banks and trust companies as associate members. The daily clearings of the association averaged about $6,000,000 in 1921, 'as compared with $4,000,000 in 1920. Of the $1,900,000,000 total clearings for 1921, this bank presented about $1,500,000,000 of items. NOTE AND COUPON COLLECTIONS. Notes and drafts handled for collection in 1921 numbered 814,329, as compared with 563,814 in 1920 an increase of 45 per cent. Of ; this number, 559,418 were drawn on places outside of New York City, while 254,911 were payable in New York City. Collection of matured bonds and' coupons totaled $104,843,668 in 1921, as compared with $60,115,396 in 1920, an increase of 75 per cent. The collection of these items has, as heretofore, been handled for member banks free of charge, except for such charges as were made by collecting banks and passed back to the banks depositing such items. TELEGRAPHIC TRANSFER SERVICE. This service, which is used by the Treasury and the member banks for the benefit of themselves and their customers, was maintained unchanged in 1921. The number of transfers averaged 40 per cent greater than in 1920, although the dollar amount increased only about 4 per cent. The following table shows the telegraphic transfers of this bank to and from other Federal Reserve Banks from 1916 to 1921: Year. Number. Amount. 1916 (nine months) 2,971 $484,500,000 1917. 10,302 6,768,400,000 1918 39,099 19,384,371,849 1919 82,321 18,245,250,181 1920 147.302 17,021,509,734 1921 • 205,706 17,770,400.000 FISCAL AGENCY OPERATIONS. The duties of the Federal Reserve Bank of New York as fiscal agent of the United States were similar in character to those performed during 1920, but the volume of transactions was considerably reduced. CERTIFICATES OF INDEBTEDNESS. The total amount of certificates of indebtedness sold throughout the United States during 1921 was nearly $1,000,000,000 less than in 1920, and the amount sold in the Second Federal Reserve District was $500,000,000 less. The continued increase in the investment demand for certificates was accompanied, particularly in this district, by a heavy oversubscription of all issues and by the ready market which developed for all issues at a substantial premium. During the year the open market for certificates became increasingly independent of reserve bank support. The volume of certificates held by banks continued to diminish as the investment demand increased and the open market developed. In the last half of 1921 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

514 REPORT OF THE FEDERAL RESERVE BOARD. reporting member banks in principal cities of the district, representing about 75 per cent of the banking resources of the district, held on the average 10.5 per cent of the total amount of certificates outstanding in the district, compared with 16.5 per cent in the last half of 1920. TREASURY NOTES. In addition to the sale of certificates of indebtedness, there were sold during the year in this district $303,840,300 of three-year United States Treasury notes. These notes were issued in denominations from $100 up to $100,000. The public demand for Treasury notes was similar to that for certificates of indebtedness, and subscriptions to the issues much exceeded the amount allotted. Both issues immediately sold in the open market at a premium. GOVERNMENT DEPOSITS AND DISBURSEMENTS. Ba-nks of the district subscribing for certificates of indebtedness ordinarily paid for them, as in previous years, by crediting the account of the Federal Reserve Bank of New York as fiscal agent of the United States. The deposits so created bear 2 per cent interest and are drawn down ratably from time to time as the Government requires the funds. The smallest amount on deposit with qualified depositaries in 1921 was $12,165,000 on June 14 and the largest $291,932,000 on June 20. Collateral pledged with this bank as security against such deposits amounted at the maximum for the year to $383,872,000. As previously, collectors of internal revenue deposited tax receipts directly with this bank, which were used for the redemption of maturing certificates of indebtedness and other Government purposes. At the four tax-payment periods this bank lent to the collector of internal revenue a staff of about 40 clerks for about 10 days to assist in handling income-tax checks. This assistance made it possible for the Treasury to receive early credit for checks and save considerable amounts of interest. The clerks were reimbursed by the Government for overtime, but their salaries were paid by this bank. The following table shows the number and amount of Government # checks handled by this bank during the past few years, other than those drawn in redeeming certificates of indebtedness, and in the payment of coupons: Year. Number. Amount. 1917 3,029,000 $1,099,458,000 1918 11,108,000 4,936,592,000 1919 12,967,000 6,805,806,000 1920 10,852,000 2,465,931,000 1921 12,488,000 1,638,094,000 Total 50,444,000 16,945,881,000 EXCHANGE AND CONVERSION OF GOVERNMENT BONDS. Prior to December 31, 1920, the Treasury Department provided permanent bonds to be exchanged for temporary or interim certificates of all Liberty loan issues with the exception of the fourth Liberty loan. Permanent bonds of that issue were ready on January 5, 1921, and this bank proceeded to deliver them in exchange for temporary bonds, as in the case of earlier issues. The bank also, as in previous years, conducted the conversion of Liberty bonds and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2—NEW YORK. 515 Victory notes from one interest rate to another, where authorized; their exchange from one denomination to another; and the operations connected with their registration. The extent of these transactions during 1921 appears from the following summary: Pieces. Value. 1920 1921 1920 1921 Bonds received for conversion or exchange 9,362,262 7,013,402 $3,339,234,300 $?,791,999,200 Bonds delivered on conversion or exchange.... 5,559,339 3,506,692 3,306,937,550 2,846,805,850 Total 14,921,601 10,520,094 6,646,171,850 5,638,805,050 The bank continued to cash coupons from Government bonds, Federal Farm Loan bonds, War Finance Corporation bonds, and other similar issues. The amount of such coupons aggregated $313,000,000 on 26,000,000 pieces during the year, as compared with $295, 000,000 on 31,000,000 pieces in 1920. The larger payments on the smaller number of pieces reflect a reduction in the number of $50 and $100 bonds outstanding as a result of exchanges which have been made. RELATIONS WITH BANKS. During 1921 representatives of this bank continued to visit member banks. Conferences with officers and directors of member banks were also held from time to time at the New York and Buffalo offices to explain the operations and policies of the Federal Reserve Bank. During the year 356 member and 5 nonmember banks were represented at the conference. The effect of these visits and conferences has been not only to give member banks a better understanding of the operations and policies of the Federal Reserve Bank but also to give the officers of the bank a better appreciation of the problems of the member banks and the conditions surrounding their operations and a closer acquaintance with their officers. BANK CHANGES IN 1921. At the close of the year the banks of the Second Federal Reserve District (exclusive of savings banks), classified according to their charters, whether National or State, and also according to membership in the Federal Reserve System, were as follows: Eec. 31, 1920. De.e. 31, 192 Type of bank. Members. me N m o b n e - rs.m P e e m r c b e e n rs t .Members.me N m o b n e - rs.m P e e m r c b e e n rs t . National banks 649 0 100 667 0 100 State banks 51 203 20 48 211 19 Trust companies 83 124 40 85 123 41 Total 783 327 71 800 334 71 ) Changes from year to year in the table given above are accounted for as follows: Total number of banks in the district, Jan. 1, 1921 1,110 New national banks established during the year 24 New State institutions established during the year 12 36 1,146 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

516 REPORT OF THE FEDERAL RESERVE BOARD. National banks absorbed by State institutions. ' 3 State institutions absorbed by other State institutions 2 State institutions liquidated 1 National banks absorbed by other national banks 6 — 12 State institutions converted into national banks ....*. 3 Total number of banks in the district, Dec. 31, 1921 1,134 MEMBERSHIP OF STATE INSTITUTIONS. The number of State banks an'd trust companies in the district which are now members of the Federal Reserve System is 133. Three State banks were admitted to membership during the year, two withdrew from membership, and two were converted into national banks. Thirty-three per cent of the eligible State institutions of the district are now members of the Federal Reserve System, and their resources amount to about 78 per cent of the total resources of State institutions in the district eligible for membership. FOREIGN RELATIONS. The relationships heretofore established with foreign banks of issue, to which reference has been made in previous annual reports, have continued during the past year without important change. Transactions between this bank and the Bank of England and the Bank of France have related principally to reparation payments handled on behalf of the Reparations Commission. Similar transactions with the National Bank of Belgium have resulted in more active mutual * relations than heretofore. Further development of the relations between this bank and de Nederlandsche Bank has also taken place, and each institution has formally appointed the other its agent and correspondent. Operations under the agreements with de Javasche Bank and the Bank of Japan have continued during the past year without any material change. No actual business has been transacted with the other foreign central banks with which relations have been established. FOREIGN EXCHANGE RATES. In accordance with the provisions of the emergency tariff act of May 27, 1921, this bank certifies to the Secretary of the Treasury each day, for the purpose of the assessment and collection of duties upon merchandise imported into the United States, rates of exchange for foreign currencies which represent the buying rates at noon for cable transfers in New York City. Rates for 36 principal foreign currencies are certified daily, and in cases where rates for other less important currencies are required, special certifications are made to the Treasury on request. BUFFALO BRANCH. The operations of the Buffalo branch, maintained to make the facilities of the Federal Reserve System readily available to banks in the 10 most western counties of New York State, showed a moderate but practically continuous growth during the year, as will be noted from the following summary of its operations: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 2 NEW YORK. 51*; Checks and transit items Currency handled. received Loans Interest 1921 and made. earned. disbursed. Number. Amount. January-March j $67,619,000 $240,658,000 $472,000 2,127,000 I $520,244,000 April-June 71,165,000 279,962,000 ! 515,000 2,342,000 I 537,016,000 July-September ! 72,636,000 255,124,000 391,000 2,273,000 j 510,448,000 October-December | 75,524,000 268,140,000 316,000 2,650,000 I 546,722,000 Total | 286,944,000 1,043,884,000 I 1,694,000 9,392,000 2,114,430,000 The expense of operation for the year was $338,777. At the end of the year the branch had 3 officers and 131 employees. SCHEDULE 1.—COMPARATIVE STATEMENT OF CONDITION. [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, 1921. 1920. 1919. RESOURCES. Gold and gold certificates 283,142 132,723 154,234 Gold settlement fund, Federal Reserve Board. 130,058 45,902 14,977 G old w ith foreign agencies 1,211 48,195 Total gold held by banks 413,200 179,836 217,406 Hold with Federal Reserve Agent. 653,004 254,576 306,756 Gold redemption fund '. 15,000 39,000 25,000 Total gold reserves 1,081,204 473,412 549,162 legal tender notes, silver, etc.. 50,336 144,759 46,193 Total reserves. 1,131,540 618,171 595,355 Bills discounted: Secured by United States Government obligations.. 356,014 454,752 562,090 All other .* 53,066 416,687 228,713 Bills bought in open market 72,593 113,740 202.903 Total bills on hand 281,673 985,179 993,706 United States bonds and notes 4,166 1.518 1,307 United States certificates of indebtedness: One-year certificates (Pittman Act) 35,400 I 59,276 59,276 All other 63,959 j 390 8,445 Total earning assets. 385,198 1,046,363 1,062,734 Bank premises 6,648 4,092 3,201 5 per cent redemption fund against Federal Reserve Bank notes.. 1,603 2,766 2,900 Uncollected items 103,363 141,347 250,056 All other resources 2,852 1,431 1,618 Total resources. 1,631,204 1.814,170 1,915,8 Capital paid in. 27,114 26,373 22,391 Surplus 60,197 56,414 45,082 Deposits: Government 32,616 11,298 5,848 Member bank—reserve account. 726,098 702,431 755,952 Allother 14,451 12,133 45,396 Total deposits. 773,165 725,862 807,196 Federal Reserve notes in actual circulation ~663,363 867^48? 807,616 Federal Reserve Bank notes in circulation—net liability. 20,559 38,833 54,673 Deferred availability items 83,848 93,319 168,870 All other liabilities 2,958 5,888 10,036 Total liabilities 1,631,204 1,814,170 1,915,864 Ratio of total reserves to deposit and Federal Reserve note liabilities combined 78.8 140.0 138.8 1 Calculated on basis of net deposits and Federal Reserve notes in circulation. 85227—22——34 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—MOVEMENT OP PRINCIPAL ASSETS AND LIABILITIES DURING 1921. [Amounts in thousands of dollars.] 00 i Discounted bills. Purchased bills. per R ce e n se ta rv g e es.2 Total Discounted for member banks Federal Date. a + e ( s i 2 a n s 1 r + e g 0 n t 7 ) - s . ( T 3 h o e + l t 4 d a ) l . c F o o e D u f t d o h n i e r s e t r - e r a d l Total in th S i U e s c b . d u y S r i . s e t d rict. Per T h 9 o e - t l 8 d al R F B S o e e o a d s t l n h e e d r e k r v a r t s e l o , m c o h P a p i a u r n s e k r e n - e d t U s S e t n t i c a e i u t t s r e e . i s d - s T e c r r o a e v s t - e h a s l . p T o d o s e t i - a ts l . R c n i t e r i o s i c o n e t u n e r l s . v a e - Actual.jus A te d d - , a Reserve held Govern- cent net.i (7+8). Banks. (2-3). ment (5-4). obligations. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Jan. 7 . 1 037 098 873 267 873 267 433,962 49.7 102,903 4,273 107,176 60,928 587,659 717,922 839,625 39.0 38 7 14... . 969,761 806,574 806,574 393,522 48.8 87,174 2,263 89,437 76,013 582,099 690,622 800,121 40.6 40.5 21 1,007,496 878,754 878,754 409,163 46.6 65,367 11,747 77,114 63,375 546,098 706,045 793,026 38.1 37.3 28 ... 998,040 908,925 908,925 414,012 45.5 28,436 51,828 80,264 60,679 544,939 694,044 787,746 38.3 34.6 Feb. 4 . 1 015 431 945,016 945 016 424,726 44.9 9,881 54,938 64,819 60,534 550,352 707,514 796,492 38.1 34.3 11 992,535 915,213 915 213 394,403 43.1 14,486 46,022 60,508 62,836 565,519 691,132 787,938 39.4 36.2 18 . 949 269 870,539 870 539 375,282 43.1 18,194 33 373 51,567 60,536 591,146 684,523 791,991 41 7 39.4 25 974,020 882,441 882,441 393,451 44.6 30,743 23,962 54,705 60,836 577,273 690,626 796,383 40.5 38.8 Mar. 4 946,166 846 206 846 206 373,704 44.2 37,132 18 829 55,961 62,828 600,483 670,132 801,916 42 2 40 9 11 974,278 875,580 875,580 389,519 44.5 37,829 13,652 51,481 60,869 610,121 710,330 791,404 41.8 40.8 18 , 856 543 737,054 737 054 385,730 52.3 34,957 5 862 40,819 84,532 661,898 654,376 789,920 45.8 45 4 25 795,741 695,824 695,824 377,173 54.2 39,386 3 286 42,672 60,531 739,917 688,853 780,740 50.3 50.1 Apr. 1 725,198 624 058 624 058 335,628 53.8 42,185 512 42,697 58,955 833,441 685,492 783,461 56.7 56 7 8 744,000 646,977 646,977 342,653 53.0 34,492 162 34,654 62,531 770,251 654,888 776,791 53.8 53.8 15 754,397 641,083 641 083 349,507 54.5 50,849 153 51,002 62,465 767,474 680,283 762,173 53.2 53 2 22 742,885 642,659 io,666 632,659 357,624 56.5 42,085 -25 42,060 58,141 768,740 670,652 756,071 53.9 54.6 May 2 4 7 7 7 1 1 2 3 , ,9 5 6 1 2 1 6 61 0 4 9 , , 5 4 4 0 1 1 1124,,080507 5 5 9 9 7 9, 6 4 8 0 4 1 3 3 2 4 3 3, , 6 9 5 0 9 1 5 5 4 7 . . 0 5 4 4 6 3 , , 8 1 2 4 9 0 — -2 2 5 5 4 4 3 6 , ,8 1 0 1 4 5 5 5 6 6 , , 2 2 8 8 1 1 7 7 8 8 5 5 , , 0 4 3 5 5 3 6 6 7 7 4 5 , , 2 4 2 4 7 3 7 7 3 4 9 1, , 4 0 6 0 0 4 5 5 5 5 . . 5 5 5 56 6 . 6 3 11 736,299 640,235 10,000 630,235 364,871 57.9 37,205 -25 37,180 58,859 759,112 684,629 725,430 53.8 54 5 18 674,671 495,934 17,810 478,124 240,116 50.2 39,601 39,601 139,136 780,250 649,932 718,909 57.0 58.3 25 663 199 517,502 25,347 492,155 245,523 49.9 44,848 44,848 100,849 800,544 670,415 707,350 58.1 59.9 June 1 639,210 544,705 26,348 518,357 230,516 44.5 34,484 34,484 60,021 844,287 683,180 715,951 60.3 62.2 8 591,366 507,680 22,515 485,165 209,216 43.1 27,405 27,405 56,281 896,091 698,037 696,928 64.2 65.9 15 671,618 414,101 30,050 384,051 171,166 44.6 17,111 17,111 240,406 910,321 813,010 688,966 60.6 62.6 22 509,312 414,025 37,612 376,413 153,538 40.8 10,600 10,600 84,687 933,682 680,331 675,424 68.9 71.6 29 482, 562 415,807 39,450 376.357 145.767 38.7 7.362 7,362 59,393 953,552 677.854 671.523 70.7 73.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 6., 527,162 449,969 31,015 418,954 !188,984 451 11,616 11,616 I 65,577 904,977 671,043 |684,615 66.8 69.0 13. 505,347 424,400 30,485 393*915 !149,461 379 7,708 7,708 73,239 904,600 662,101 654,260 68.7 71.0 20. 485,543 422,335 31,414 390,921 i146,396 374 5,747 5,747 57,461 915,224 662,285 645,313 70.0 72.4 27. 459,315 404,016 38,284 365,732 |141,088 386 2,018 2,018 53,281 947,507 668,540 643,875 72.2 75.1 Aug. 3.. 493,176 417,305 37,885 379,420 i135,175 356 12,733 12,733 63,138 894,501 645,279 647,346 69.2 72.1 10.. 481,564 387,969 34,038 353,931 '145,641 411 25,507 25,507 68,088 884,396 627,881 638,045 69.9 72.6 17.. 447,208 368,136 32,597 335,539 |140,099 418 20,269 20,269 58,803 912,359 625,568 637,645 72.2 74.8 24.. 427,811 360,651 37,872 322,779 i127,667 39.6 13,879 13,879 53,281 951,756 641,313 634,018 74.6 77.6 SepM 3 : 1.. 4 4 6 2 3 4 , , 6 5 6 5 8 3 3 3 7 5 0 5 , , 4 9 2 7 7 0 3 3 5 4 , , 8 7 7 6 5 8 3 3 3 2 4 1 , , 5 2 5 0 2 2 j j1 1 2 2 6 3 , , 0 3 4 9 0 3 3 3 9 69 2 2 1 5 5 , , 9 3 1 0 0 2 2 1 5 5 , , 9 3 1 0 0 2 6 5 7 3 , , 3 2 3 8 1 1 9 9 6 8 2 1, , 7 4 4 8 1 7 6 6 7 6 2 8, , 6 9 3 6 1 5 6 6 3 4 2 7 , , 3 3 2 3 0 7 7 7 2 5 . . 9 5 7 7 8 5 . . 1 6 410,181 317, 516 34,030 283,486 i100,404 354 23,334 23,334 69,331 972,388 645,033 639,847 75.7 78.3 21. 300,835 234,230 31,780 202,450 | 84,666 418 12,679 12,679 53,926 1,078,568 647,579 635,042 84.1 86.6 28, 336,098 257,170 30,326 226,844 I 80,216 354 17,605 17,605 61,323 1,089,798 691,441 631,130 82.4 84.7 Oct. 11. 4 3 0 6 9 2 , , 5 4 2 9 4 2 2 31 7 0 6 , , 6 2 3 2 6 2 2 1 0 9 , , 0 5 0 1 0 8 2 2 5 9 6 0, , 6 7 3 0 6 4 I i 1 9 1 6 9 , , 9 3 9 3 0 7 3 41 7 . 8 3 1 3 8 , , 3 6 3 6 2 7 3 1 3 8 , , 3 6 3 6 2 7 6 6 7 5 , ,5 6 5 0 6 3 1 1 , , 0 0 1 4 4 2 , , 7 0 5 5 3 0 6 67 5 9 9 , , 0 7 8 5 3 2 6 6 4 3 2 8 , , 2 7 9 5 3 2 7 8 7 0 . . 0 0 7 8 8 1 . . 5 5 Nov 1 2 9 6 2 9 . . . . 3 3 3 3 1 8 2 3 6 2 0 0 , , , , 1 1 3 7 5 2 2 5 6 1 2 1 2 2 2 2 0 4 5 4 2 4 1 9 , , , , 7 6 8 2 0 0 4 8 0 5 4 1 2 1 5 5 0 9 , , , , 1 0 3 4 5 0 6 0 5 0 6 7 2 1 2 2 3 9 2 3 7 9 9 1 , , , , 7 4 4 9 0 5 3 1 0 0 7 5 ! I ! | 1 9 8 0 7 7 7 8 8 , , , , 3 1 4 3 ° 6 6 3 3 6 0 5 * 4 4 4 3 5 3 1 4 . . . . 6 9 8 2 2 3 5 5 2 0 2 1 , , , , 7 1 5 8 7 2 6 2 6 8 0 7 2 3 5 5 2 0 1 2 , , , , 7 8 1 5 7 2 6 2 6 7 0 8 4 4 8 5 7 9 7 9 , , , , 2 5 0 7 8 2 9 3 1 3 4 1 1 1 1 1 , , , , 0 0 1 0 6 0 8 8 6 1 9 9 , , , , 0 3 2 2 7 8 4 1 3 2 5 7 6 6 6 6 9 9 9 7 9 1 4 9 , , , , 9 2 5 6 4 9 4 6 9 5 5 2 6 6 6 6 3 3 4 2 2 0 3 3 , , , , 3 7 4 8 2 0 4 7 9 0 8 3 7 8 8 8 9 3 3 2 . . . . 1 9 0 3 8 8 8 8 0 4 3 3 . . . . 3 6 5 7 u 3 H . Dec. 2 3 1 2 2 1 4 8 0 3 6 1 * . . . . . . . 3 3 2 3 3 3 3 6 6 4 9 1 1 8 1 3 0 4 3 1 0 , , , , , , , 5 5 3 4 1 3 1 7 8 2 0 6 4 9 5 2 4 4 4 2 8 2 2 2 2 2 1 2 1 0 3 1 2 8 1 3 9 6 3 7 3 6 , , , , , , , 0 6 4 8 4 0 0 5 1 9 2 8 5 8 7 2 0 7 4 3 8 1 4 5 0 , , , 3 0 0 2 0 0 4 0 0 2 2 2 2 2 2 1 2 3 1 1 0 0 7 7 6 3 3 5 6 8 , , , , , , , 0 4 8 0 2 0 4 5 9 2 5 8 8 8 3 0 7 7 8 4 8 ! 1 1 1 1 1 1 8 4 3 2 2 5 1 6 1 0 4 7 6 0 , , , , , , , 3 0 8 7 7 6 4 9 6 2 9 8 4 9 6 3 2 1 6 8 5 6 4 6 5 5 6 5 6 9 3 3 4 6 8 . . . . . . . 6 9 6 7 1 8 2 2 2 2 3 4 6 4 3 8 6 7 7 4 1 , , , , , , , 5 4 3 8 2 6 7 3 7 1 5 8 8 0 1 1 3 6 7 8 7 2 2 3 4 4 2 6 8 7 7 4 6 3 1 , , , , , , , 5 4 2 3 6 7 8 3 7 5 1 0 8 8 1 1 6 3 7 8 7 1 1 0 8 7 7 8 0 7 1 7 4 4 2 3 0 , , , , , , , 6 2 9 7 2 7 4 9 8 0 9 2 8 2 9 9 5 8 7 3 4 1 1 1 1 1 1 1 , , , , , , , 1 0 0 1 0 1 0 1 7 6 1 9 0 9 4 5 4 2 4 4 7 , , , , , , , 5 1 4 5 1 8 2 6 1 1 9 4 6 8 6 0 4 0 5 8 7 6 6 6 7 6 6 7 9 7 7 1 8 8 2 9 6 7 6 3 7 2 , , , , , , , 1 5 4 0 7 8 9 6 2 3 9 7 7 9 2 0 0 2 3 8 8 6 6 6 6 6 6 6 4 6 3 6 3 4 3 6 3 1 6 4 1 7 , , , , , , , 5 6 3 5 7 7 6 7 5 2 9 1 1 7 1 9 9 0 6 6 2 7 8 8 8 7 8 8 3 1 9 0 9 3 2 . . . . . . . 6 6 6 8 8 5 8 8 8 8 4 4 3 . . . 0 0 6 « H \ o p ^ 1 Minus sign indicates amounts bought from other Federal Reserve Banks. 2 Prior to Mar. 18, net deposits, as given below were used in calculating reserve percentages: Jan. 7 $667,592,000 Feb. 4 $649,166,000 Mar. 4 $621,273,000 14 631,946,000 11 645,795,000 11 669,896,000 21 641,148,000 18 624,694,000 28 635,433,000 25 630,662,000 o 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. A blank in this column indicates that no accommodation was extended to or received from other Federal Reserve Banks. CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

520 REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK OF NEW YORK MOVEMENT OF EARNING ASSETS DURING 1920 AND 1921 ILL10NS0F DOLLARS MILLIONS OF DOLLARS UNITED STATES SECURITIES i 00 A A b\ 100 mMTffi/yfryff/. ft/. 0 Vyy/ 0 400 400 PURCHASED BILLS 300 300 n 200 1If Sfe— 200 100 100 y//y DISCOUNTED BILLS (SEE NOTE BELOW)—1— 000 1000 900 900 800 A f'AA'M\£/-''//'&,'A,AA 'AA,y ' , A 'A A, AAA H'y A K 800 'AA% 'AA''AA 'AA'AA,YAA, X 600 \ 600 500 ?yy,oyAyyy/ /yy/ •A /yy) ft.K" >>" ,,. •///. \//,: M 400 w yyy/ /mAA) 'M myAA/ yAA 'AAAYA/t '/y, \ 400 3 2 0 0 0 0 m y A Mm m p.p'U yfy p m I i ' W M %m, w Wi y w yfy , .A 3 2 0 0 0 0 wp. % M w<i % YAA k % '0 % i "KA AAA''(/I 100 Yr/ TOTAL EARNING ASSETS 1200 1200 1000 1000 900 900 800 700 700 600 illllllllllli 600 w 400 300 ZOO 100 1920 1921 A - ?aper seoured by U.S. Government obligations discounted for banks in district. B - Total paper discounted for banks in district. 0 - Total discounted paper held. Space between lines B and a representa - where above line B - paper discounted for, and - where below line B - paper reuiscounted with, other Feueral Reserve Ban**. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

521 DISTRICT NO. 2—NEW YORK. FEDERAL RESERVE BANK OF NEW YORK DEPOSITS, F.R. NOTE CIRCULATION, CASH RESERVES, AND RESERVE RATIOS, 1920-1921 PERCENT PER CENT ACTUAL RESERVE 90 v^ 80 V 70 60 50 40 Vr 30 20 10 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 1200 1200 DEPOSITS 1000 1000 600 400 200 200 1200 1200 F. R.NOTE CIRCULATION 1000 1000 600 I i i 800 7/7,77/, w%,. r//, b 600 m w,m. % m y/A Wp, 600 1 400 % %w%, m f w1 i i w< i 200 i m1 i 1i i i i i 2000 2000 DEPOSIT AND F. R.NOTE LIABILITIES, L, AND TOTAL RESERVES, C 1800 1600 \ T^ 1200 1200 1000 800 800 600 600 400 400 200 200 1920 1921 Adjusted percentages are calculated after reducing or increasing reserve* held by the amount of acconvnotiation received from or extended to other Federal Reserve banks. The deposit carve is based on "net deposits" up to llarch XI, 192X, and oa Digitized for FRASER ••total deposits'* thereafter. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.—VOLUME OF BILLS DISCOUNTED AND BOUGHT. to to [In thousands of dollars.] Total discounted and purchased Discounted paper. Purchased paper. paper. Month. Total. o S b e G c l m i o u g v r e a e e n t d i r t o n b n - y s. 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 . - l t i A u v p r e g a a - r p s l i c t e a o u r n c . l d - k All other. Total. B a a a c n n c c k e e p e s t r . - s' exDeoilZlarg, - T g rad g e * 1921 1920 1919 January 5,565,144 2,307,160 5,536 10,482 I 194 3,241,772 60,108 51,205 8,007 896 5,625,252 3,607,117 3,543,642 February 5,631,398 2,201,124 3,102 6,835 206 3,420,131 58,061 49,348 6,759 1,954 5,689,459 3,974,533 2,724,123 March 4,271,628 1,562,560 2,890 3,080 331 2,702,767 78,089 67,095 10,559 435 4,349,717 3,920,455 2,684,982 April 2,469,906 1,594,839 2,806 1,423 424 870,414 71,580 55,247 14,308 2,025 2,541,486 3,259,602 2,739,661 May 1,861,355 1,060,908 3,523 1,217 514 795,193 72,686 56,803 15,406 477 1,934,041 3,340,153 4,127,791 June 1,282,759 501,453 1,737 1,035 685 777,849 24,410 21,778 2,567 65 1,307,169 3,585,692 3,240,252 July 1,797,401 956,251 180 1,179 497 839,294 14,415 14,055 360 1,811,816 4,160,210 4,118,594 August 1,598,704 842,861 1,173 2,563 459 751,648 63,567 59,144 4,390 1,662,271 5,224,154 3,593,613 September 1,091.256 441,843 35 2,138 394 646,846 41,382 39,449 1,878 1,132,638 4,524,122 3,560,161 October 1,564,586 765,840 1,405 636 796,705 85,278 80,160 5,118 1,649,864 5,059,570 4,617,486 November 1,355,335 866,250 109 1,312 738 486,926 84,152 77,918 6,056 178 1,439,487 5,231,377 4,618,816 December 2,279,518 1,603,535 2,101 672,046 146,085 131,113 14,903 2,425,603 6,349,773 4,091,769 Total, 1921 30,768,990 14,704,624 23,192 33,517 | 6,066 16,001,591 799,813 703,315 90,311 6,187 31,568,803 1920. 50,539,428 32,100,969 70,654 46,255 I" 18,321,5,50 1,697,330 1,588,223 48,838 60,269 52,236,758 1919. 42,449,491 I 40,453,893 61,771 57,133 I 1,876,694 1,211,399 1,184,029 7,463 19,907 43,660,8 W O > Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. %—NEW YORK. 523 SCHEDULE 4.—EARNINGS AND EXPENSES. 1921 1920 1919 Discounted bills $30,762,021 $49,839,183 $29,935,911 Purchased bills 1.829,665 8,323,050 3,326,839 United States securities 1,955,970 1,975,649 1,888,497 Deficient reserve penalties. 63,804 141,664 36,405 Miscellaneous.. .• 93,479 245,775 144,760 Total earnings. 34,704,939 60,525,321 35,332,412 -Salaries: CURRENT EXPENSES. Bank officers 498,114 383,760 294,795 Clerical staff 3,928,025 3,479,270 1,982,807 Special officers and watchmen 208,144 166,449 61,208 All other 303,314 ! 199,213 781,297 Governors' conferences 448 i 270 316 Federal Reserve Agents' conferences 156 88 139 Federal Advisory Council 1,200 1,200 1,150 Directors' meetings 32,101 32,176 27,730 Traveling expensesl 37,891 23,743 29,015 Assessments for Federal Reserve Board expenses. 202,802 221,868 181,875 2,275 9,323 11,250 Insurance (life, fidelity, casualty, workmen's compensation, and general liability) 82,822 45,579 98,817 Banking house: Taxes and fire insurance 8,360 Light, heat, and power. 9,678 Repairs and alterations. 9,279 All other 20,993 Bent, including light, heat, and power, and minor alterations 422,660 360,497 423,820 Fire insurance—furniture and equipment 911 3,328 Printing and stationery 252,247 270,383 236,653 Telephone 47,388 32,934 32,490 Telegraph 65,191 49,045 33,235 Security shipments 33,461 'Currency and coin shipments 185,674 Postage and expressage {other than on money and security ship- 318,213 274,372 ments) 131,570 Furniture and equipment 89,418 201,490 204,014 Federal Reserve currency: Original cost, including shipping charges 1,091,592 648,393 642,430 Cost of redemption, including shipping charges , 213,287 159,766 105,167 Taxes on Federal Reserve Bank note circulation 136,310 207,402 169,514 AH other expenses 152,469 184,865 142,251 Total current expenses.. 8,167,780 6,999,255 5,734,345 Current net earnings 26,537,159 53,526,066 29,598,067 PROFIT AND LOSS ACCOUNT. Earnings 34,704,939 60,525,321 35,332,412 Current expenses 8,167,780 6,999,255 5,734,345 Current net earnings 26,537,159 53,526,066 29,598,067 Additions to current net earnings: Assessments account expenses Federal Reserve Board, previously charged to profit and loss 168,682 Special reserves previously set aside 200,000 Allother 3,654 6,050 31,096 Total additions 3,654 374,732 31,096 Deductions from current net earnings: Depreciation allowances on bank premises 60,404 385,677 900,0-• 32= Reserve for self-insurance 250,000 250,000 200,000 Reserve for depreciation on United States bonds 25,299 Special reserves 106,165 "325,' ill Assessment account expenses Federal Reserve Board 168,682 All other 136,577 5,527 75,089 Total deductions 446,981 772,668 1,669,544 1 , ' —r=a Net deductions from current net earnings 443,327 397,936 1,638,448 Net earnings available for dividends, surplus, and franchise tax 26,093,832 53,128,130 27,959,619 Dividends paid 1,608,721 1,477,096 1,291,047 Transferred to surplus account 3,782,671 12,332,523 23,964,678 Franchise tax paid United States Government 20,702,440 39,318,511 2,703,894 1 Other than those connected with governors' and agents' conferences and meetings of directors and of the advisory council. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

524 REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE 5.—CURRENCY RECEIPTS FROM AND PAYMENTS TO MEMBER AND NON- MEMBER BANKS. [In thousands of dollars.] Receipts. Payments. Total receipts. Total payments. From To Month. From non- To nonmember mem- member: mem- 1921 1920 1919 1921 1920 1919 banks. ber banks, ber banks. banks January 229, 236 5,948 122,730, 3,5! 235,184 196,055; 173,022 126,316) 118,442! 84,177 February 148,901 5,348 152,639 3,575 154, 249 120,604| 90,711 156, 2141 182,254! 97,106 March 203,361 5,957 161,130 5,251 209,318 155,126! 94,968 166,381! 179,913s 139,214 April 185,874 7,618 164, 593 5,858 193, 492 158,582! 121, 522 170,451! 197,173 s 128,419 May 190,553 8,316 133,845 6,368 198,869 155, 582! 137,294 140, 2131 169,633! 137,036 June 218,649 6,534 163,041 8,296 225,183 179,93l| 142, 255 171,337i 175,813; 204,635 July 227,534 7,213 160,167 6,546 234,747 205, 987 i 156,223 166,713! 164,7021 195,979 August 215,716 6,434 160, 598 9,266 222,150 187,350| 135,235 169, 864i 155,665' 157,341 September 199,632 7,016 167, 488 6, 263 206,648 206, 474, 139,255 173,751 182, 272. 138, 395 October J 191,594 6,719 159,742 6,278 198,313 188, 844i 157, 524 166,020! 181, 530: 150,323 November 202,607 5,880 172, 537 1, 714 208, 487 221, 590! 127,139 179,2511 172, 926 170,904, December 223,300 5,711 219,861 229,011 260,017! 179, 009 228, 7281 213,422 230,942 Total, 1921..2,436,957 78.694 1,938,371, 76,868 2,515, 651 2,015,239! 1920..2,085,678 150' 464 2!, 038,981 54,764 2, 236,142 2,093, 745 1919..1,450,152 204:, 005 1,773,447 61,024 1,654,157 i 1,834,471 SCHEDULE 6.—OPERATIONS OP FEDERAL RESERVE CLEARING SYSTEM. [Figures include cash items only.] [Numbers in thousands; amounts in thousands of dollars.] | Items drawn on banks in own district. Items forwarded Items drawn on to other Federal px -uii • u ru , . j \ , L ai o l R ( c i e a b s te e r d a rv n i e c n h B F c a i e t n d i k e e s r . al B F L a e o n d c k e a r t a c a e n i l d t d i R e o s b e u . s r t a e s r n id v c e e h U T n r i e t a e s d u S re t r a t o e f *) s • . Re th s e er i v r e b r B a a n n c k h s e s a . nd ! N b u e m r. - Amount. N b l^m- Amount. N b u e m r. - Amount. N b u e m r. - Amount. Jan. 1-15 ! 832 1,142,711 2,225 331,065 550 85,777 517 81,902 Jan. 16-Feb. 15 ! 1,566 2,074,494 4,147 558,571 882 151,354 985 152,838 Feb. 16-Mar. 15 1 1,608 1,954,749 4,281 603,250 727 136,417 1,036 149,323 Mar. 16-Apr. 15 j 2,086 2,195,221 4,782 ! 685,502 1,121 193,426 1,168 165,086 Apr. 16-Mavl5 1 1,758 1,990,721 4,681 ' 611,525 1,107 173,136 1,160 162,584 May 16-June 15 1,797 2,129,628 4,795 i 675,133 1,020 123,435 1,184 166,160 June 16-July 15 ! 1,896 2,102,888 4,835 i 712,741 1,214 162,596 1,123 154,652. July 16-Aug.. 15 ! 1,857 1,884,392 4,726 I 778,205 969 124,991 1,059 144,439 Aug. 16-Sept. 15 1 1,878 1,810,615 4,684 ! 759,429 1,011 103,388 1,070 145,234 Sept. 16-Oct. 15 : 1,938 2,084,206 4,759 612,292 1,107 129,392 1,149 160,158 Oct. 16-Nov. 15 ; 1,913 1,954,927 4,824 ! 588,426 1,080 123,935 1,213 167,219 Nov. 16-Dec. 15 1,973 2,074.086 4,941 ! 714,961 1,140 89,961 1,303 159,681 Dec. 16-Dec. 31 ! 1,070 1,135; 941 2,533 ! 409,013 560 40,286 679 79,449 Total, 1921 1 22,172 24,534,579 56,213 , 8,040,113 12,488 1,638,094 13,646 1,888,725 1920 ! 13,751 27,307,906 49,178 ! 17,905,065 10,852 2,465,929 13,255 7,646,211 .1919 ! 8,253 23,281,803 41,866 19,594,682 13,052 7,653,565 10,895 5,791,991 Total number.1 Total amount. Period. 1921 I 1920 1919 1921 1920 1919 Jan. 1-15 4,124 3,422 3,130 1,641,455 2,537,450 2,050,203; Jan. 16-Feb. 15... 7,580 5,909 6,385 2,937,257 4,922,464 4,375,107 Feb. 16-Mar. 15.. 7,652 6,220 5,271 2,843,739 4,677,556 3,518,207 Mar. 16-Apr. 15.. 9,157 7,376 6,172 3,239,235 5,152,031 4,342, 747 Apr. 16-Mayl5... 8,706 7,208 5,953 2,937,966 4,563,646 4,065,185. May 16-June 15.. 8,796 6,929 5,825 3, 094,356 4,578,532 4,498,611 June 16-July 15.. 9,068 7,314 5,850 3,132,877 4,893,081 4,870,873. Julyl6-Aug. 15.. 8,611 7,127 6,643 2,932,027 4,199,393 4,708,191 Aug. 16-Sept. 15.. S, 643 7,233 5,678 2,818,666 4,417,000 4, 819,894 Sept. 16-Oct. 15.. 8,953 7,856 6,223 2,986,048 4,607,486 5,161,789 Oct. 16-Nov. 15.. 9,030 7,925 6,878 2,834,507 4,464,385 5,559,738 Nov. 16-Dec. 15.. 9,357 8,130 6,482 3,038,689 4,040, 504 5,282,899 Dec. 16-Dec. 31... 4,842 4,387 3,576 1,664,689 2,271,583 3,068,597 Total, 1921 104,519 36,101,511 1920 87,036 55,325,111 1919 74,066 56,322,041 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. 3—PHILADELPHIA. RICHARD L. AUSTIN, Chairman and Federal Reserve Agent. OPERATIONS AND SERVICES. P The operations of the various departments connected with the rediscounting and clearing functions of this bank naturally declined very materially during 1921 as a direct result of the smaller volume of business operations and of lessened credit demands. While these services to banks, therefore, were not called upon so heavily as in 1920, others were more fully availed of by the member banks. Among the latter were collections, transfers of funds by leased wire, and the safekeeping of securities. The bank examination department expanded its activities, and the dissemination of accurate information on business conditions through the medium of the monthly report has been of assistance to bankers and business men in this and other districts. The great expansion in the circulation of the business review during 1921, from 3,300 to 9,800, was due almost entirely to requests from the persons who are receiving it. The table given below summarizes the 'activities of the principal departments of the bank: 1921 1920 1919 Discounts for member banks $3,872,367,000 $5,820,258,000 $10,736,435,000 Number of banks accommodated 509 484 494 Bills purchased $99,176,000 $76,380,000 $14,048,000 Currency: Shipments 646,540,000 643,266,000 389,269,000 Receipts 691,239,000 570093,000 444,475,000 Gold settlement fund operations—net gain.. 11;424,000 is:674,000 15,734,000 Collection items handled 364,897,000 233;309,000 United States coupons paid 69,587,000 62,519,000 47,064,000 Transfers of funds by wire 847,697,000 625339,000 Bond conversions and exchanges 628;379,000 680534,000 War savings securities sold 553,000 2;594,000 5,037,000 Transit—checks handled 13,035'022,000 16,327;200,000 13,843,744,000 i Net loss. STATEMENT OF CONDITION. The statement of condition of this bank reveals the nature of the changes wrought by the decline in the use of credit during 1921. Comparing the December 31, 1921, statement with that of the year before, we find that bills discounted decreased $83,831,000, and total earning assets $100,018,000. Maturing loans were paid off in this district, not so much by the payment of gold and other cash, which increased $14,263,000, or by debits to member banks7 reserve accounts, which decreased $6,308,000, as by the return of Federal Reserve 525 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

526 REPORT OF THE FEDERAL RESERVE BOARD. notes, of which $77,597,000 were retired from circulation during the year. The reserve ratio responded to the lessened calls upon the loaning power of this reserve bank, and the increase in reserves, by increasing from 54.7 to 71.2 per cent. Statements for the past three years are shown in Schedule 1. • EARNINGS AND EXPENSES. Although the rate of earnings on loans and discounts is about the same as in 1920, the smaller amount of earning assets was reflected in a diminution in the earnings of the bank. In the table below, interesting items bearing upon earning power are presented for the past five years: Average Annual Average rate of Net earnings rate of Year. e a a s r s n e i t n s g . e o a n r e n b tc i i n l . l g s s , a d v i a v il i e a d t b e c l n . e d f s o , r e c a a r p o n i i n t n a g l. s Per cent. Per cent. 1921 $160,991,000 4.94 $5,339,000 60 1920 223,888,000 5.01 9,065,000 117 1919 218,039,000 3.94 6,659,000 89 1918 101,067,000 4.19 3 192 000 46 1917 29,737,000 3. 32 754.000 12 The capital of $8,736,000 of the Philadelphia Federal Eeserve Bank is less than 3 per cent of its total resources, and the average earning assets for the year were more than 18 times this capital, so that a very moderate rate of interest charged for rediscounting of paper would result in large earnings on its capital. Such earnings when proportioned to the total resources of the bank would be relatively small. It should not be forgotten, as has often been said before, that the Federal Reserve Banks have been able to greatly increase their loans through the note-issuing powers, a privilege conferred upon them by the Federal Government. The gross earnings for 1921—$8,008,000—were derived from the following sources: Bills discounted, 85.5 per cent; purchased paper, 6.4 per cent; United States securities, 7.5 per cent; and miscellaneous sources, 0.6 per cent. After the payment of dividends and the addition of $935,239 to the surplus, the remainder—$3,886,552— was turned over to the Government in payment of the franchise tax. In 1920, owing to the fact that the surplus of 100 per cent of subscribed capital permitted bylaw had just been built up, only $363,663 was paid to the Government as a franchise tax. Comparative statements of earnings and expenses appear in Schedule 4. CHANGES IN DISCOUNT RATES. The discount rates of this bank on all paper, except that secured by United States certificates of indebtedness, were continued unchanged up to July 21, 1921, of this year. During that period the rate on paper secured by United States bonds was 5J per cent, and on commercial, agricultural, and live-stock paper 6 per cent. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3—PHILADELPHIA. 527 rate on paper secured by certificates of indebtedness ruled at the rate borne by the certificates, but with a minimum of 5 per cent up to February 2. On February 3 the minimum was raised to 5J per cent, and on June 16 a fiat rate of 6 per cent was established. In July conditions were thought by the board of directors to be propitious for the lowering of rates, and they were reduced on July 21 to 5^ per cent for paper of all classes and maturities. This reduction was followed by two others—to 5 per cent on October 5 and again to 4^per cent on November 3. The rate in effect at the close of the year was 4J per cent. RESERVE POSITION. The decrease during 1921 of approximately $100,000,000 in the holdings of bills discounted and other earning assets was accomplished for the most part through the retirement from circulation of almost $78,000,000 in Federal Reserve notes. A decrease of over $6,000,000 in the reserve deposits of member banks and an increase of more than $14,000,000 in reserve cash were the other manifestations of the decline in earning assets. The reserve ratio, therefore, responded to these changes by increasing from 54.7 per cent at the end of 1920 to 71.2 per cent on December 31, 1921. The first six months of the year were marked by declining gold holdings, but the decreases in liabilities—Federal Reserve note circulation and total deposits—were so large that the unfavorable trend of the reserve cash was more than offset, with the result that the reserve ratio increased from 54.7 to 57.5 per cent within this period. During the last six months liabilities continued to decline and reserves increased, so that a still larger increase in the reserve ratio, from 57.5 to 71.2 per cent, occurred. A summary, by quarters, of the reserve ratio and contributing factors, is given below: [000 omitted.] Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, 1921. 1921. 1921. 1921. 1920. Reserve ratio (per cent) 71.2 70.2 57.5 52.9 54.7 Total reserves $219,653 $218,157 $193,505 $183,315 $205,390 Total earning assets 116,949 124,738 174,401 200,916 216,967 Federal Reserve notes in circulation 200.724 209,063 226,454 239,749 278,321 Total deposits 107,702 101,582 109,927 106,626 113,683 LOAN AND DISCOUNT OPERATIONS. - The total of all discounts and open-market purchases by the Federal Reserve Bank of Philadelphia during 1921 was $4,174,403,000, a decrease of 35 per cent from 1920 and of 61 per cent from 1919. The average daily earning assets are of greater interest than the figures of operations, as they show the effect of the loan and discount operations upon the investment holdings of the bank. In the table which follows little change is indicated in the holdings of purchased paper, but the holdings of bills discounted decreased about 33 per Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

528 REPORT OF THE FEDERAL RESERVE BOARD. cent from the 1920 figure. For the first time since early in 1918, municipal warrants appear in this tabulation: 1921 1920 1919 Bills discounted $124, 878,388 $190,122,307 $193,194,965 Bills bought i . 9,159,376 9,809,869 1,581,247 United States securities 26,945,703 33,955,559 23,262,740 Municipal warrants 7,123 0 0 Totals 160,990,590 233,887, 735 218,038,952 REDISCOUNTED PAPER. Bills to the amount of $3,872,367,000 were discounted for member banks in 1921, as compared with nearly $6,000,000,000 in 1920, and almost $11,000,000,000 in 1919. The number of banks which were accommodated in the course of the year was 509 compared to 484 in 1920. In addition to the discounts for member banks, $5,000,000 of bills was discounted for other Federal Reserve Banks in January. It was at no time necessary for this bank to rediscount with any other Federal Reserve Bank during the year. This condition furnishes an interesting contrast with 1920, during which year this bank was rediscounting with other Federal Reserve Banks during the first four months of the year, and during the last four months it, in turn, was loaning to others. There is given below a table showing the amount of discounted bills held by this bank on December 31, 1920, and at the end of each of the succeeding quarterly periods. Classes of paper. Dec. 31, I Sept. 30, June 30, Mar. 31, Dec. 31, 1921. 1921. 1921. 1921. 1920. Customers' paper secured by Government obligations.: $10,459 $14,993 $24,933 $35,660 $39,597 Member banks' collateral notes: Secured by Government obligations | 56,155 55,096 69,603 72,871 76,080 Otherwise secured I 0 0 0 0 50 Commercial paper j 21,103 30,911 45,166 47,208 57,069 Agricultural paper 719 372 641 400 388 Live-stock paper 0 5 0 5 0 Trade acceptances 116 224 252 213 229 Bankers' acceptances 0 0 0 0 150 Total. 88,552 101,601 140,595 156,357 173,563 A reduction in the total amount of paper held occurred in each quarter of 1921, but the greatest decrease took place in the third quarter, during which period a decline was recorded amounting to 46 per cent of the total decline of $85,011,000 for the year. Smaller holdings of bills secured by Government obligations account for the major part of the total decrease. PURCHASED PAPER. With the decline in borrowings by member banks, this bank has increased its purchases of bankers' acceptances in the open market. Its total purchases of this paper in 1921 were $99,176,000, of which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3 PHILADELPHIA. 529 all but $6,822,000 was bought from dealers operating in the Third Federal Reserve District. The latter amount was acquired through the Federal Reserve Bank of New York. In 1920 total purchases were $76,380,000, of which 46 per cent was purchased through the New York Federal Reserve Bank. This larger patronage of dealers in acceptances operating in this district is in line with the policy of the bank of fostering the development of a local acceptance market. The bills bought during the past year divide themselves, according to the transactions involved, as follows: Foreign bills, 613.3 per cent; domestic bills, 20.8 per cent; bills creating dollar exchange, 12.9 per cent. An interesting comparison of holdings, average maturities, and rates over the past four years is given in the table below: Purchases in open market. Purchases Holdings of from other purchased Federal bi o ll f s y a e t a e r n . d m A a v tu er r a i g ty e . ! Av r e a r te a ge \ j AAmmoounnntt- R B e a s n e k rv s. e Days. Per cent, j 1921. $15,895,000 44.81 5.34 i $92,353,000 $6,823,000 1920. 12,689,000 59.09 5.89 ! 41,232,000 35,148,000 1919. 5,177,000 57.00 4.38 14,048,000 1918. 3,011,000 4.12 I 77,686,000 42,322,000 UNITED STATES SECURITIES. Holdings of United States securities at the end of 1921 show a large decrease in the 2 per cent certificates of indebtedness, which are deposited with the Treasurer of the United States to secure the circulation of Federal Reserve Bank notes. FEDERAL RESERVE NOTES. With the exception of a few weeks around the holiday period at the end of the year, the circulation of the Federal Reserve notes of this bank decreased throughout the whole of 1921. The amount in circulation on January 1 was $278,321,000, and on December 31 $200,- 724,000. The lowest point was $197,251,000, reached on December 6, and from that point the circulation increased to $211,040,000, to take care of Christmas trade needs, and this, in turn, was followed by a decline to the end of the year. While it is true that notes were issued to the bank by the Federal Reserve Agent in larger quantities than in 1920, redemptions in 1921 were proportionately so much larger that the volume of notes outstanding decreased greatly. In connection with the decrease throughout the district in the amount of disbursements for pay rolls, etc., it is interesting to note that, in the amount of their issue, notes of the $10 and $20 denominations reversed their positions. In 1920, 25 per cent of the notes issued were of the $10 denomination and 37.4 per cent were of the $20 denomination. In 1921, 31.6 per cent were $10 notes and 26.8 per cent $20 notes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

530 REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK NOTES. Under the authority of the Pittman Act, the United States Treasury has been buying silver since February to take the place of the silver dollars which were melted down and sold to foreign Governments as bullion during the war. Circulating notes known as silver certificates, secured by these silver dollars, were acquired by the Government by purchase from the Federal Reserve Banks, payment being made* for them in 2 per cent certificates of indebtedness. The Federal Reserve Banks were authorized to use such certificates as security for the issue of Federal Reserve Bank notes. Following the purchase of silver by the Treasury, the coinage of silver dollars and the issue of silver certificates has been resumed. The 2 per cent certificates of indebtedness are being paid and equal amounts of Federal Reseve Bank notes retired. Federal Reserve Bank notes in circulation decreased from $22,601,000 to $5,886,000 during 1921, and holdings of Pittman Act certificates of indebtedness declined from $30,280,000 to $10,000,000 ia the same period. CURRENCY DEPARTMENT. The assumption of the functions of the subtreasury in February necessitated the addition of 12 persons to handle coin and 5 to supplement the existing force of money counters. Figures of currency counted during 1920 and 1921 follow: Number of Amount pieces. Amount. 1921 1 104,743,901 I $766, 821,557 1920 ! 71,673,499 j 683,291,320 . . i !_ , The increase in the number of pieces handled comes directly as a result of subtreasury activities, as 48,692,292 bills of the $1 and $2 denominations were counted in 1921, as compared with 19,394,081 in 1920. These bills were largely United States notes. The average daily number of all pieces handled in 1921 was 380,886, and in 1920, 259,686. TRANSIT DEPARTMENT OPERATIONS. The volume of checks passing through the transit department reflects directly the volume of business transactions in this district. It is not surprising, therefore, to note that in 1921 there was a falling off in the dollar amount. There was, however, a marked increase in the number of items making up this total. The average amount of each check handled during 1921 was $250, and in 1920, $347. If this decline in the average amount for which each check was drawn had been confined to the past year, it might be assumed that it was entirely a result of smaller average purchases. But it has continued over the past four years for which we have records, and this suggests the conclusion that checks are coming more and more into common usage as a means of payment even in the smallest transactions. Part of the decrease is ascribable to the increase in tendency on the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3 PHILADELPHIA. 531 part of member banks of making transfers to other banks by wire instead of by transfer drafts, but this tendency by no means accounts for the entire downward trend in the size of the average check. The average daily number of checks handled during the year was 174,100, as compared with 156,617 in 1920, and the largest number handled in any one day was 253,768, on November 10. GOLD SETTLEMENT FUND OPERATIONS. Total receipts through the gold settlement fund during 1921 were $6,948,659,183.78, and disbursements, $6,937,235,623.73, showing a gain of $11,423,560.07 from this source for the year. In 1920 there was a gain of $18,674,000 through this fund, and in 1919 a loss of $5,734,000. COLLECTION DEPARTMENT. The report of the collection department shows a great expansion in the number and amount of items received for collection—that is, notes and bills payable at a future date. The number of items received expanded from 92,651 in 1920 to 221,238 in 1921, or 139 per cent, and the amount of these items from $233,309,000 to $364,- 897,000, or 56 per cent. The average amount of each item, however, declined from $2,518 to $1,649. The ratio of the number of items returned unpaid to total items received increased from 16.4 per cent in 1920 to 17.7 per cent in 1921. COUPON DEPARTMENT. A smaller number of United States coupons were paid by the coupon department than in 1920, but their total amount increased 11 per cent. Comparative figures for the past three years follow: Number. Amount. 1921 ... .. 8,781,836 $69,587,294. So 1920 9,493,270 62,519,070.00 1919 8,258,108 47,063,622.79 The division of the 1921 and 1920 totals, according to the class of the security from which the coupons w^ere clipped, is given herewith: Number Amount. 1920 1921 1920 1921 Liberty bonds and Victory notes 9.441,536 641,093 $56,462,863 $59,402,517 Certificates of indebtedness 44 527 117 011 002 9 304 749 Other United States coupons ?3 144 820,029 WIRE TRANSFER OPERATIONS. The transfer of funds over the leased wires of the Federal Reserve System is coming into increasing use by our member banks. In 1921, 13,366 messages transferring $847,697,000 were sent, whereas in 1920, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

532 REPORT OF THE FEDERAL RESERVE BOARD. the number of messages was 9,832, and the total amount involved was $625,339,000. This increasing appreciation of this service is even more manifest in the number of banks availing themselves of it. The largest number of banks making such transfers in any one month of 1920 was 27, as compared with 68 in 1921. The amounts transferred to each of the other reserve districts during 1921 were: Boston $78, 670, 000 St. Louis $13, 779, 000 New York 383, 636, 000 Minneapolis 43, 568, 000 Cleveland 61, 225, 000 Kansas City 11, 418, 000 Kichmond 49, 533, 000 Dallas ". 15,085, 000 Atlanta 24,384,000 San Francisco 29,334,000 Chicago 136, 065, 000 FISCAL AGENCY OPERATIONS. As a result of transactions involving the exchange, conversion, and transfer of ownership of Liberty bonds and Victory notes, the Liberty bond department of this bank handled 3,486,163 pieces to the amount of $633,523,400 during 1921. In 1920, 3,589,075 pieces, amounting to $680,533,650, were exchanged or converted. The exchange of permanent for temporary bonds formed the bulk of the operations in both years. Details of various operations connected with the fiscal agency function follows: Number of pieces Amount, handled. I Liberty bonds and Victory notes: Conversions 71,901 $11,148,350 Exchanges 3,405,88G 617, 230,300 Transfers of ownership 8,370 5,144,750 Purchase^ for United States Treasury 13,415 .28,160,700 Received in payment of inheritance taxes 1,495 1,6771 liOO Certificates of indebtedness redeemed 71,817 193,807,000 CERTIFICATES OF INDEBTEDNESS. Probably one of the best indications of easier monetary conditions is to be found in the subscriptions to the various issues of United States certificates of indebtedness. In 1920 this district was allotted $264,- 323,000 of certificates, and the ratio of subscriptions to allotments was 118 per cent. There were 16 issues in 1921 with a total allotment to the district of $266,293,500. Subscriptions were 216 per cent of allotments for the first eight issues, and 682 per cent for the last eight issues. The number of subscribing banks, however, declined from 999 in 1920 to 838 in 1921. In addition to the certificates, two issues of three-year United States Treasury notes were marketed in 1921. Subscriptions in this district were $240,996,300, and allotments, $86,106,700. WAR SAVINGS ACTIVITIES. Cash sales of war savings securities in the Third Federal Reserve District fell off again in 1921, amounting to $1,552,876, as compared with $2,593,882 in 1920, $5,036,774 in 1919, and $41,662,200 in 1918. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3 PHILADELPHIA. 533 BANKS OF THE DISTRICT. In the following tabulation, the 1,189 banking institutions in the Third Federal Reserve District on December 31, 1921, are classified according to location, membership in the Federal Reserve System, and membership in the par collection system: Banks on par list. Non- N b a a t n io k n s. al me b S m a ta n b t k e e rs. m b N S e a m t n o a k n t b e s - e . r Total. b S a p t n a a k t r e s. G to ra ta n l d . Pennsylvania . 556 39 395 990 997 New Jersey ... 79 8 45 132 3 135 Delaware 18 4 33 55 2 57 Total. 653 51 473 1 177 12 1,189 At the end of 1920 there were 1,149 banking institutions in the district, while at the beginning of the year there were only 1,105. The more important items, taken from the statements of the banks as of June 30, 1921, are given in a table below. It will be observed that the member banks of the Federal Reserve System had 63 per cent of the total resources of all banks in the district. If we consider only the eligible banks, we would find that the member banks composed 69 per cent of the total number of all eligible institutions, 69 per cent of their combined capital and surplus, and 72 per cent of their total resources. [Amounts in thousands of dollars.] Ratio N b a a t n io k n s a . l S m ta e te m b b a e n rs k . N be o r n m St e a m te - Total. b m a e n m ks b e to r banks. all banks Per cent. Number 651 48 469 1,168 60 Capital 88, 639 25, 821 76,226 190,686 60 Surplus 125,162 48,738 86,019 259,919 67 Undivided profits 43,207 11,887 29,489 84,583 65 Total deposits 1,282,803 290,403 978,850 2,552,056 62 Total resources... 1,704,925 390,902 1,228,149 3,323,976 63 Changes in the condition of the member banks are best reflected in the reports which 58 of these banks rendered during 1921. For purposes of comparison their combined reports as of January 7 and December 28 are given below: Jan. 7. Dec. 28. Loans and discounts: Secured by United States securities * $76,385,000 $51,519,000 Secured by other stocks and bonds.. 198,983,000 199,543,000 All other 406,702,000 326,617,000 Total loans and discounts 1 682,070,000 577,679,000 United States securities owned. 69,072,000 75,626,000 Other securities owned 154,363,000 162,447,000 Total investments I 223, 35,000 238,073,000 Total loans, discounts, and investments l 905,505,000 815,752,000 Total deposits 719,036,000 684,735,000 Borrowings from Federal Reserve Bank. 110,036,000 50,024,000 1 Includes rediscounts with the Federal Reserve Bank. 85227—22 35 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

534 REPORT OF THE FEDERAL RESERVE BOARD. In the investment items an increase of almost $14,000,000 is to be noted, which offsets in part the decrease of $104,000,000 in loans and discounts, including rediscounts with the Federal Reserve Bank. From the figures it appears that $60,000,000 of the total reductions in the loans and discounts of these member banks were used to reduce their borrowings from the Federal Reserve Bank. The downward trend of loans and discounts and of borrowings from the Federal Reserve Bank, with minor fluctuations, was continuous throughout the year. STATE MEMBER BANKING INSTITUTIONS. At the end of 1920, 46 State banks and trust companies in this district were members of the Federal Reserve System, and during 1921, 6 other banks in Pennsylvania were added to the list. One of the member banks in Scranton, however, was consolidated with a national bank in February, with the result that the number of member State banking institutions on December 31, 1921, was 51. Of this number 39 were located in Pennsylvania, 8 in New Jersey, and 4 in Delaware. FIDUCIARY POWERS FOR NATIONAL BANKS. Sixteen applications for fiduciary powers for national banks were acted upon and granted during the year. Five of these were requests for full powers by banks which had previously been granted only partial powers, so that the net increase for 1921 is only 11 in the number of banks possessing these privileges. A table follows showing the banks in each State possessing either full or partial powers on December 31, 1921: Full ! Partial powers. | powers. Total. Pennsylvania 68 j 36 104 New Jersey I 18 ! 5 23 Delaware I 2 I 2 4 Total ! 88 I 43 ! 131 DEPARTMENT OF BANK EXAMINATCON. Among the duties of the department of bank examination are the examination of the banking and trust departments of State member banks, the investigation of applications for fiduciary powers, new national bank charters, and applications under the Clayton Act in connection with interlocking directorates. During 1921, 57 examinations of banking institutions were made in all, of which 46 were in cooperation with the State banking departments. The remaining 11 were independent examinations, all but one resulting from applications for membership in the system. The total banking resources of all the banks examined was $261,387,000; 37 individual trust departments with total assets of $527,420,000 and 25 corporate trust departments covering a total of $1,098,316,000 were also examined. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3—PHILADELPHIA. 535 The number of transactions handled and applications investigated were: Fiduciary powers, 16; national bank charters, 8; Clayton Act applications, 32; capital stock transactions, 179. The department has been frequently called upon by State banking institutions in this city and elsewhere in the district in connection with bank mergers and other matters and has been particularly helpful in assisting banks in the installation of trust departments. SCHEDULE 1.—COMPARATIVE STATEMENT OF CONDITION. [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, 1921. 1920. 1919. RESOURCES. Gold and gold certificates 1,950 6,087 I 1,194 Gold settlement fund—Federal Reserve Board. 61,776 50,353 i 31,679 Gold with foreign agencies 264 ! 10,506 Total gold h Id by bank 63,726 56,704 43,379 Gold with Federal Reserve Agent. 144,402 138,791 88,94£ Gold redemption fund 4,366 8,902 8,448 Total gold reserves 212,494 204,397 'l 140,775 7,159 993 ! 589 Legal tender notes, silver, etc 219,653 205,390 I 141,364 Total reserves Bills discounted: 66,615 115,647 i 174,450 Secured by United States Government obligations.. 21,937 56,736 i 35,405 All other 15,895 12,689 ! 5,177 Bills bought in open market Total bills on hand 104,447 185,072 i 215,032 United States bonds and notes 2,173 1,434 | 1,385 United States certificates of indebtedness: One-year certificates (Pittman Act) 10,000 30,280 30,280 All other 189 181 ; 407 Municipal warrants 140 Total earning assets. 116,949 216,967 | 247,104 Bank premises 600 500 ! 500 5 per cent redemption fund against Federal Reserve Bank notes 700 1,300 ! 1,475 Uncollected items 46,296 67,749 i 92,971 All other resources 218 358 Total resource; 384,416 492,264 484,106 LIABILITIES. Capital paid in. 8,736 8,485 7,884 Surplus 17,945 17,010 8,805 Deposits: Government 1,786 1,222 i 5,189 Member bank—reserve account. 104,706 111,014 i 110,541 AH other 1,210 1,447 9,358 Total deposits. 107,702 113,683 125,088 Federal Reserve notes in actual circulation 200,724 278,321 237,051 Federal Reserve Bank notes in circulation—net liability.. 5,886 22,601 28,,792 Deferred availability items 43,049 51,324 75;, 633 All other lia bilities 374 840 853 Total liabilities 384,416 492,264 484,106 Ratio of total reserves to deposit and Federal Reserve note liabilities combined 71.2 154.7 U1.0 1 Calculated on basis of net deposits and Federal Reserve notes in circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES DURING 1921. Or CO [Amounts in thousands of dollars.] Reserve Discounted bills. Purchased bills. percentages.l Discounted for member banks Date. a T + e ( s i a 2 1 o n s r 0 + t e g n a ) 7 t . - l s ( T 3 h o + el t 4 d a ) l . c R F B o o e e D a u f t d s o h n i n e s e r e k t r - r e v r s a d . e l ( T 2 o -3 ta ) l . in th S G i m U e s o c b v . e d u S y e n r i . r e s t n t d r - ict. (5 c P + e e n 4 r t ). ( T 8 h o + el t 9 d a ) l . R B F B o f e e o a r t d s o u n h e e m g e k r r v h r s a . e t l m c ( o h P 7 a p i a u - r n s e 8 k r e n - ) e d . t U s S t e i n t c e a i u t s t e e r . i s d - s T e c r r a o e v s t - e a h s l . p T o d o s e t i - a ts l . R F c n i t e e r i o d s c i o n e t u e n e r r l v s . a a e - l Actual.jus A te d d - . 2 obligations. 10 12 Jan. 7.. 199,420 155,623 12,100 143,523 111, 684 77.8 11, 997 11, 997 31,800 212,208 115,100 273,005 58.2 61.5 14.. 199,307 153, 379 10,236 143,143 109,233 76.3 11,155 11,155 34,773 203,196 106,117 266,856 57.2 60.1 21.. 182,895 141, 894 5,991 135,903 108,271 79.7 32,312 215, 248 108,373 263,141 61.3 63.0 191,142 149,340 4,946 144,394 109,674 76.0 9,883 31,919 212,816 111,478 262,522 59.5 60.9 Feb. 1;: 199,618 146,019 2,182 143,837 108,042 75.1 21,650 6,823 14,827 31,949 198,539 109,680 254,979 56.4 58.9 11.. 203,6^5 148,407 2,148 146,259 110,857 75.8 22,627 6,823 15,804 32,661 196,282 110,378 256,313 55.3 57.8 18.. 213,437 156,911 156,911 109,390 69.7 23,810 6,733 17,077 32,716 179,246 107,694 254,110 51.5 53.4 25.. 210,221 156,969 156,969 110,120 70.2 20,918 4,038 16,880 32,334 192,185 109,586 260,274 53.6 54.8 Mar. 4.. 200,911 152,262 152,262 107, 205 70.4 16,485 3,213 13,272 32,164 197,733 112,167 255,895 55.7 56.6 11.. 194,988 146,909 146,909 110,213 75.0 16,181 2,796 13, 385 31,898 200,958 111,647 251,623 57.0 57.8 18.. 197,967 150,843 150,843 109,403 72.5 13, 482 1,547 11,935 33,642 188,523 104,286 241,622 54.5 54.9 25.. 206,414 158,762 158,762 111, 967 70.5 14, 077 1,206 12,871 33,575 188,132 114,671 242,344 52.7 53.0 Apr. 1.. 197,845 152,633 152,633 106,646 69.9 14,572 14,572 30,640 194,210 112,887 239, 274 55.1 8.. 178,162 132,033 132,033 102,335 77.5 15,680 15,680 30,449 201, 865 107,286 236,446 58.7 15.. 191,940 144,496 144,496 104,274 72.2 16,856 16,856 30,588 188,152 107, 478 235,815 54.8 22.. 190,591 144,233 144,233 108,198 75.0 14,018 14,018 32,340 186,962 107,695 233, 467 54.8 27.. 189,229 145,026 145,026 110,140 75.9 12,387 12,387 31, 816 186,199 103,329 234,527 55.1 May 4.. 183,412 141,604 141,604 107,329 75.8 11,443 11,443 30,365 190, 811 103, 209 233,280 56.7 11.. 175,905 136,381 102,154 74.9 9,411 9,411 30,113 198,426 103, 879 234,291 58.7 18.. 191,364 146,965 146,965 109,324 74.4 8,336 8,336 36,063 180,864 106,849 229,259 53.8 25.. 183,249 144,976 144,976 110,731 76.4 29,365 177,395 97,092 228,229 54.5 June 1.. 196,225 155,691 155,691 114,117 73.3 11,182 11,182 29,352 173,264 100,341 230,413 52.4 8.. 188,240 149,569 149,569 111, 280 74.4 9,656 9,656 29, 015 177,994 101,799 228,216 53.9 15.. 195,718 139,080 139,080 104, 111 74.9 8,149 8,149 181, 254 108,663 226,633 54.1 2 2 2 9. . - . 1 1 7 7 0 4 , , 2 6 9 4 8 8 1 1 3 4 4 0, , 6 3 8 5 4 1 1 1 4 3 0 4 , , 6 3 8 5 4 1 9 9 6 4 , , 6 8 9 1 1 5 7 67 2 . . 4 0 6 4 , , 0 6 8 89 9 6 4 , , 0 6 8 89 9 2 29 9 , , 8 2 5 7 8 5 1 1 8 8 6 5 , , 9 04 4 9 4 1 9 0 8 1 , , 4 0 2 9 0 8 2 2 2 2 4 6, , 3 1 5 2 2 5 5 57 7 . . 1 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 6 155,769 123,360 123,360 84,043 68.1 3,390 f 3,390 I 29, 019 206, 367 103,218 i224, 513 63.0 13 147,438 116,443 116,443 83,388 71.6 2, 538 i 2, 538 i 28, 457 209, 584 104,230 223,653 63.9 20 148,706 118, 835 118, 835 85,638 72.1 1,492 i 1,492 ] 28, 379 208,168 104,270 219,130 64.4 27 148,534 119, 098 119, 098 85,709 72.0 1,105 ; 1,105 28, 331 206, 217 102,691 219,341 64.0 Aug. 3 151,299 122,120 122,120 87,503 71.7 681 i 681 28, 498 207, 384 108,632 217, 307 63.6 10 141,658 112,132 112,132 82,031 73.2 1,081 1,081 28,445 209,429 101, 243 219, 778 65.2 17 144,584 115, 320 115,320 85,949 74.5 1,887 1, 887 27, 377 207, 839 105, 504 216, 543 64.5 24 137,705 107, 581 107, 581 78,073 72.6 3,245 3,245 26, 879 203, 874 98, 025 214, 334 65.3 31 134,525 106,529 106, 529 78,150 73.4 3,127 3,127 24, 869 210,290 100,668 213, 765 66.9 Sept. 7 130,317 103,183 103,183 76,937 74.6 2,288 2,288 24, 846 220,180 103, 810 213, 818 69.3 14 130,030 103,746 103,746 74,745 72.0 1,440 1,440 24,844 222,209 105, 836 213, 815 69.5 21 ! 132,421 103,124 103,124 74,318 72.1 2,372 2,372 26,925 208,748 100, 632 210,130 67.2 28 •.. 123,493 100,476 100, 476 69, 840 69. 5 1,972 1,972 21,045 217, 396 100,161 208,698 70.4 Oct. 5 1 115,470 94,155 94,155 67,600 71.8 1,353 1,353 19,962 227,737 106,272 205,264 73.1 11. 117,697 95,420 95, 420 68,264 71.5 2,391 2,391 19,886 227, 571 106,114 207, 445 72.6 19.. 126,659 101,657 101,657 71, 654 70.5 6, 255 6,255 18, 747 208,799 104, 042 201,154 68.4 124, 521 100,885 100, 885 68,767 68.2 5,889 5,?"" 17, 747 212,429 103, 879 200, 853 69.7 H Nov. 2.. 119, 783 96,084 96,084 70.1 6,484 6,484 17,215 216,364 106, 501 198, 986 70.8 g 16.. 1 1 1 1 4 3 , , 5 8 8 0 6 1 9 90 1 , , 1 6 0 6 9 7 9 90 1 , , 1 6 0 6 9 7 6 6 6 3 , , 0 9 0 3 8 2 7 7 0 2 . . 9 0 6 7 , ,8 7 4 4 6 4 6 7 , ,8 7 4 4 6 4 1 15 6 , , 6 3 3 9 1 0 2 2 2 2 4 0 , , 4 8 8 3 0 3 1 1 0 0 1 3 , , 2 1 8 0 0 9 2 2 0 0 4 0 , , 7 4 2 2 5 2 7 7 3 2 . . 5 6 OH 23.. 113, 559 88,406 88,406 70,007 79.2 9,809 9,809 15, 344 221,414 103,093 200, 324 73.0 30.. 3110,439 86,217 86,217 66,126 76.7 10,156 10,156 14, 021 225,155 103,783 197, 873 74.6 Dec, 7.. 3 111, 681 88,645 88,645 67,160 75.8 8,970 8,970 14, 021 221, 705 102,899 198,014 73.7 2 1 1 4 . . . . 3 4 1 1 2 0 1 8 , , 3 6 6 3 4 1 8 91 5 , , 6 9 3 5 0 3 8 91 5 , , 9 6 5 3 3 0 6 7 6 0 , ,4 4 0 0 1 5 7 7 6 7 . . 6 5 13 8 , , 6 8 6 5 5 9 1 8 3 , , 6 8 6 5 5 9 1 1 4 5 , , 2 4 9 5 1 7 2 2 3 1 0 9 , , 2 8 9 4 7 0 1 10 0 0 1 , , 9 2 2 8 8 6 2 2 0 0 7 3 , , 5 7 9 6 3 7 7 71 5 . . 2 5 T 28.. 4 121,676 90, 316 90,316 70,213 77.7 15,277 15,277 15, 988 216, 638 98, 997 205,198 71.2 1 Prior to Mar. 18, net deposits, as given below, were used in calculating reserve percentages: W Jan. 2 1 7 1 4 $9 8 8 1 8 8 , , , 5 1 4 9 8 7 3 2 8 , , , 0 0 0 0 0 0 0 0 0 Feb. 1 1 4 1 8 $9 9 93 7 8 , , , 2 5 9 9 6 78 2 8 , , , 0 0 0 0 0 0 0 0 0 Mar. 1 4 1 $ 1 9 0 8 0 , , 9 84 6 3 4 , , 0 0 0 0 0 0 FM > O 28 95,128,000 25 97, 994,000 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 A blank in this column indicates that no accommodation was extended to or received from other Federal Reserve Banks. 3 Includes $45,000 of municipal warrants. * Includes $95,000 of municipal warrants. > CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

538 REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK OF PHILADELPHIA MOVEMENT OF EARNING ASSETS DURING 1920 AND 19Z1 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 150 150 UNITED STATES SECURITIES 100 100 50 y 50 I i i i i H /// V/A Y(/A •777, 100 100 PURCHASED BILLS i 50 50 i { 350 DISCOUNTED BILLS S£E NOTS BELOW j 300 300 250 250 200 200 150 150 100 100 SO 50 350 350 TOTAL EARNING ASSETS 300 300 250 150 100 50 1920 1921 A - Paper secured by U.S. Government obligations discounted for banks in district. B - Total paper discounted for banks in district. 0 - Total discounted paper held. Space between lines fl ana a represents - where above line B - paper discounted for, Digitized for FRASaEnRd —.-where below line B - paper retiiscounted with, other Federal Reserve Banks. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3 PHILADELPHIA. 539 FEDERAL RESERVE BANK OF PHILADELPHIA DEPOSITS, F. R. NOTE CIRCULATION, CASH RESERVES AND RESERVE RATIOS, 1920-1921 =ER CENT PER CENT ACTUAL RESERVE RATIOS ADJUSTED 1 —>/V k 30 20 10 MILLIONS OF DOLLARS MILLIONS OF DOLLARS DEPOSITS 150 n > 100 d u i i d 100 i i i i i 50 i 1i i i i i i i I i i %i 1i f i i i i i 500 DEPOSIT AND F. R.NOTE LIABILITIES, L,AND TOTAL BESERVES.'C 1920 1921 Adjusted percentages are calculated after reducing or increasing reserves held >y the amount of accommodation received fron or extended to other Federal Reserve banks. Digitized for FRASE"tRot al T he de p d o e s p i o t s s i ' t * c t u h r e v r e e a i ft s e b r a . aed on "net deposits" up to March 11, 1921, and on http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.—VOLUME OP PAPER DISCOUNTED ANP BOUGHT. [In thousands of dollars.] O Discounted paper. Purchased paper. Total discounted and purchased paper. Month. Total. o S b e G l c m i o u g v e r a e e n t d i r t o n b n - y s. 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 . - l t i A u v p r e g a a - r p s l i c e t a o u r n c . l d - k 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 . - 1921 1920 1919 o W January 349,826 246,700 163 186 102, 777 6,672 5,947 725 356,498 651,381 684,606 O February 309,687 203,536 387 105 179 105,480 11,002 9,952 1,050 320,689 560,519 642,150 March 399,243 251,788 127 176 242 146,910 9,023 6,698 2, 408, 266 544,231 834,820 April 359, 861 235;725 131 299 123,706 9,859 8,559 1,300 369, 720 570,191 917,957 May 357,917 264,955 104 250 92,608 11,038 6,913 4, 368,955 460,504 946,013 June 372, 533 264.303 186 304 107,740 3,400 3,125 275 375,933 497,323 1,079,712 A Ju u ly gust 2 3 8 0 2 9 , , 4 9 8 7 9 0 2 2 0 3 2 3 , , 1 0 4 3 6 6 1 1 0 1 5 7 2 1 0 6 4 7 7 8 6 0 , ,0 6 3 5 4 0 4 1, , 4 3 0 0 3 3 4 1 , ,4 1 0 8 3 4 X)l 2 3 8 1 3 4 , , 2 8 7 9 3 2 4 5 9 2 0 8 , , 3 9 4 4 3 0 1, 9 0 2 3 3 2 , , 2 3 8 5 5 3 September 272,173 195.304 185 223 76, 461 2,000 1,985 274,173 419,975 1,004,403 October 281,555 189,442 105 312 91,696 8,778 8,428 350 290,333 383, 679 1,152,013 November 275, 545 198,267 69 407 76, 802 11,052 10,514 538 286,597 357,413 686,469 December 301,568 222,978 416 78,099 13,823 12,665 1,158 315,391 396,991 846,702 > Total, 1921 3, 872,367 2,708,180 1,521 3,189 1,158,963 92,353 80,373 11,980 3,964, 720 tr1 w 1920 5, 820, 258 4, 415, 454 4,129 4,790 1,395, 885 41,232 38,352 ! 5, 861,490 w 1919 10,736, 435 10, 209,981 18 3,753 522,683 14,048 13,928 I 100 i 20 10, 750,483 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 3 PHILADELPHIA. 541 SCHEDULE 4.—EARNINGS AND EXPENSES. 1921 1920 1919 Discounted bills $6,849,903 $10,420,161 $7,987,864 Purchased bills 513,710 574,074 67,019 United States securities 597,553 742,235 495,768 Deficient reserve penalties. 34,442 69,150 25,673 Miscellaneous 12,485 42,931 33,556 Total earnings. 8,008,095 11,848,551 8,609,880 CURRENT EXPENSES. Salaries: Bank officers 124,020 123,338 96,929 Clerical staff 999,460 799,385 577,104 Special officers and watchmen 69,934 70,921 44,688 All other 84,970 80,412 59,228 Governors' conferences 343 272 210 Federal Reserve Agents' conferences 137 64 Federal Advisory Council 382 378 381 Directors' meetings 6,509 6,569 5,987 Traveling expenses * 17,839 9,885 5,421 Assessments for Federal Reserve Board expenses 62,008 56,804 49,059 Legal fees 5,745 2,530 1,941 Insurance (life, fidelity, casualty, workmen's compensation, and general liability) 42,987 44,604 45,848 Banking house: Taxes and fire insurance 22,741 Light, heat, and power 34,794 Repairs and alterations 79,117 All other 10,500 87,812 127,584 Rent, including light, heat and power, and minor alterations 10,621 Fire insurance—furniture and equipment 32 Printing and stationery 102,611 113,644 78,477 Telephone 28,558 15,492 14,423 Telegraph 20,385 10,565 7,578 Security shipments 5,330 Currency and coin shipments 107,114 Postage and expressage (other than on money and security ship- 159,510 103,938 ments) 73,667 Furniture and equipment 309, 696 75,065 100,868 Federal Reserve currency: Original cost, including shipping charges 320,923 292,540 209,419 Cost of redemption, including shipping charges 113,211 77,508 45,411 Taxes on Federal Reserve Bank note circulation 58,313 110,904 98,132 All other expenses 54,496 38,072 102,559 Total current expenses. i, 443 2,176,274 1,775,185 Current net earnings 5,241,652 9,672,277 6,834,695 PROFIT AND LOSS ACCOUNT. Earnings 8,008,095 11,848,551 8,609,880 Current expenses 2,766,443 2,176,274 1,775,185 Current net earnings 9,672,277 6,834,695 Additions to current net earnings: Amounts deducted from reserve for depreciation on United States bonds Assessment account expenses Federal Reserve Board, previously charged to profit and loss 41,828 All other. 104,366 3,697 Total additions 135,380 146,194 3,697 Deductions from current net earnings: Depreciation allowances on bank premises j 30,000 646,620 Reserve for depreciation on United States bonds 105,396 29,112 Assessment account expenses Federal Reserve Board 41,828 All other ""7," 578* 1,339 i 108,283 Total deductions 37,578 753,355 179,223 Net deductions from current net earnings 297,802 607,161 175,526 Net earnings available for dividends, surplus, and franchise tax 5,339,454 9,065,116 6,659,169 Dividends paid 517,663 496,679 462,380 Transferred to surplus account 935,239 1,204,775 6,196,789 3,886,552 363,662 Franchise tax paid United States Government 1 Other than those connected with governors' and agents' conferences and meetings of directors and of the advisory council. 2 Net addition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

542 REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE 5.—CURRENCY RECEIPTS FROM AND PAYMENTS TO MEMBER AND NON MEMBER BANKS. [In thousands of dollars.] Receipts. Payments. Total receipts. Total payments. Month. From To From non- To non- ! member mem- member mem-! 1921 1920 1919 1921 1920 1919 banks. ber banks. ber i banks. banks.: January 51,595 2,681 38,224 ! 54,276 47,238 47,192 38,224 33, 690 18,370 February 44,466 982 51,453 i 45,448 29,133 32,031 51,453 60,277 25,761 March 62,342 1,228 56,373 ! 63,570 39, 996 28,173 56,373 48,045 25,565 April 53,258 1,834 53,096 55,092 46,698 39, 959 53,096 46,796 27,421 May 53,581 1,794 52,627 1 55,375 39,590 40, 682 52, 627 48,879 27,192 June 57,984 1,949 59,146 59,933 48,536 37, 296 59,146 47,084 26,539 July 53,492 3,870 54,492 : 57,362 51,624 38,395 54, 492 53,279 32,617 August 58,522 4,299 55,517 ' 62,821 48,801 33, 425 55,517 60,712 36, 287 September 57,195 3,585 57,676 ! 60,780 51,910 36,468 57,676 57,511 34,991 October 53,722 3,315 44,142 i 57,037 53,258 37,026 44,142 64,210 41,637 November 51,229 3,958 56,682 486 ! 55,187 53,670 30,065 57,168 55,339 43,313 December 59,802 4,558 66,067 558 ! 64,360 59, 640 43,763 66,625 67,444 49,576 Total. 1921... 657,188 34,053 645, 495 1,044 | 691,241 646,539 I 1920.. 548,123 21,971 643,266 570,094 1 643,266 1919.. 430,628 13,847 389,046 223" i 11111II" I "444,475" ""389," 269 i SCHEDULE 6.—OPERATIONS OF FEDERAL RESERVE CLEARING SYSTEM. [Figures include cash items only.] [Numbers in thousands: amounts in thousands of dollars.] Items drawn on banks in own district. Items drawn on Itemsforwarded Period. Lo R ca e t s e e d c rv i i t e n y . B F a e n d k eral L F o e B c d a a e t n e ra k d l c o R i u t e y t s s . e id rv e e U T n r i e te a d su S re ta r t o e f s. R t t e o h s e e o r i t r v he 3 a r r B a F a n e n c d k h e s e r s a a . l nd N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. Jan.1 15. 795 384 124 1 007 118 055 96 13 766 405 89 662 Jan. 16-Feb. 15 1,499 713,255 1,873 214,323 199 42,831 730 176,259 Feb. 16-Mar. 15 1,445 669,294 1,817 197, 295 153 69,355 670 160, 423 Mar. 16-Apr. 15 1,791 766, 884 2,164 246, 240 211 43,125 762 184,793 Apr. 16-Mav lc 1,533 670,067 1,958 211, 262 235 53,070 667 150, 544 May 16-Junp 15 1,733 718,278 2,170 230,098 175 38, 480 685 147,545 June 16-July 15 1,627 707,591 2,114 228,082 171 54,359 695 144, 540 July 16-Aug. 15 1,578 669,176 2,092 218, 925 162 26,150 666. 133,849 Aug. 16-Sept. 15 1,593 658,772 1,981 225,691 129 23,752 657 131,830 Sept. 16-Oct. 15 1,606 710,116 2,059 236,292 152 28,095 660 143,692 Oct. 16-Nov. 15 1,617 683,036 1,973 219,432 174 33,146 664 149, 498 Nov. 16-Dec. 15 1,734 739,591 2,099 257, 828 135 22,299 711 127,323 Dec. 16-Dec. 31 891 393,084 1,129 142, 266 74 14,123 380 66,007 Total, 1921 19,442 8, 483, 268 24, 436 2, 745,789 2,066 462, 551 8,352 1,805,965 1920 16,593 10,466,187 21,679 3,123,073 1,919 528,704 9,026 2,737, 940 1919 12,051 8,907, 672 15,379 2,129,201 2,117 923,193 7,457 2,806,871 Total number. Total amount. Period. 1921 1920 1919 1921 1920 1919 Jan. 1-15. 2,303 1,926 1,176 605,607 652, 412 574,955 Jan. 16-Feb. 15... 4,301 3,522 2,323 1,146,668 1, 269,587 1,168,965 Feb. 16-Mar. 15.. 4,085 3,635 2,262 1,096,367 1, 261,272 1,033,920 Mar. 16-Apr. 15.. 4,928 4,254 2,776 1,241,042 1, 496,717 1,206,413 Apr- 16-May 15... 4,393 4,061 3,065 1,084,943 1, 408,563 1,072,888 May 16-June 15.. 4,763 4,034 3,040 1,134, 401 1, 448,994 1,131, 475 June 16-July 15.. 4,607 4,105 3,164 1,134,572 1, 485,402 1, 216,896 July 16-Aug. 15.. 4,498 4,003 3,320 1,048,100 1, 405,164 1,294,028 Aug. 16-Sept. 15.. 4,360 4,096 3,081 1,040,045 1,457,871 1,210,767 Sept. 16-Oct. 15.. 4,477 4,311 3,461 1,118,195 1,473,878 1,357,954 Oct. 16-Nov. 15.. 4,428 4,426 3,838 1,085,112 1,419,376 1, 421, 995 Nov. 16-Dec 15... 4,679 4,451 3,558 1,147, 041 1,347,045 1,329,720 Dec. 16-Dec. 31... 2,474 2,393 1,940 615, 480 729,623 746,961 Total, 1921 i 54, 296 ! 13,497,573 1920 i 49, 217 16,855,904 1919 1 37,004 14,766,937 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4—CLEVELAND. D. C. WILLS, Chairman and Federal Reserve Agent. RESULTS OF OPERATION. Despite a slackening in industrial activity, in some lines amountin to stagnation for many months in the past year, credit accommodations extended to member banks in this district in 1921 show an increase of more than $300,000,000 over last year. A considerable part of this may be attributed to a greater use of our facilities by country banks. From* the early spring months, except for a slight dip in July, the number of banks borrowing at the end of each month has steadily grown from 23'0 in February to 420 in December, or an increase in the number of borrowing institutions of 82.6 per cent from the low point in the year. Accommodations were extended to 59 more banks than last year, and the applications approved rose from 14,702 in 1920 to 17,463 in 1921. The total volume of loans and discounts to member banks during the year reached the. surprising total of $3,218,832,680.30. It is interesting to note that while advances to banks in Ohio, Pennsylvania, and West Virginia increased approximately in the same ratio, credits granted to Kentucky banks reached a smaller total last year than the year previous, although the number of banks accommodated was slightly larger. A comparison of discount operations for the past two years shows that the amount of commercial and industrial paper rediscounted in 1921 is practically double that of 1920. That a better distribution of Government securities has been effected would seem to be indicated by the fact that the volume of member banks' collateral notes secured by United States securities or their customers' notes secured in like manner is approximately $144,000,000 less than the preceding year. The volume of agricultural and live-stock paper discounted shows an increase of more than 188 per cent over 1920, but probably does not adequately measure the tremendous growth in agricultural credits for the reason that borrowing banks find it more convenient to substitute commercial paper drawn in larger amounts, or Government securities, for large numbers of notes drawn for small amounts. The daily average of earning assets of the Federal Reserve Bank of Cleveland has declined approximately $100,000,000 from January to December, while the average for the entire year is about $90,000,000 less than in 1920. This decline is explained in large part by the decrease in rediscounts for other Federal Reserve Banks, which totaled but $194,500,000 for 1921, compared with $1,406,000,000 in 1920, and by a decline of more than $250,000,000 in the volume of acceptances purchased and otherwise acquired. 543 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

544 REPORT OF THE FEDERAL RESERVE BOARD. Net earnings for the year totaled $6,434,061.25, a decline of 46.1 per cent from earnings of the previous year. Of this amount $1,963,362.75 was carried to normal surplus account, $366,079.19 was transferred to supersurplus account, and $3,294,712.78, or 51.2 per cent, was paid to the Government as a franchise tax, as provided by law. Schedule 3 covers in detail the operations of the loan and discount department. MOVEMENT OF MEMBERSHIP. Eight vState banks, three of which are newly organized institutions, were admitted to membership during the year. Seventeen new national banks were chartered, nine national banks liquidated, and one small State bank withdrew from membership in the system. Of the nine national banks, five were merged with other members, one was succeeded by another national bank and one by a State bank which became a member, one went into voluntary liquidation, and one into the hands of a receiver. The net result was an increase of seven State and eight national banks, giving a total membership at the end of the year of 884. The paid-in capital stock of the bank on December 31 was $11,134,100. RELATIONS WITH MEMBER BANKS. The department of bank relations, established during the early months of 1920, has effectively carried on the work for which it was created and is responsible for a much more general use of the facilities of this bank than heretofore. An analysis of reports covering visits to .a representative number of banks indicates that about 60 per cent of our members have increased the number of Federal Reserve Bank services utilized, while less than 8 per cent show a decrease. During the year 1,472 regular and 12 special visits were made to member banks. The number of nonmember banks called on was 79. Four State meetings were attended, as well as two county and 14 group meetings. BANK EXAMINATION DEPARTMENT. We continue to enjoy very friendly relations with, the banking departments of the various States, and since our examiners have been commissioned by the Comptroller of the Currency, a closer affiliation with the office of the chief national bank examiner has been created. In addition to examinations of member banks, this department investigates applications of banks requesting permission to exercise fiduciary powers, permission to invest in stock of foreign banking corporations, and applications incidental to the Clayton Act. FEDERAL RESERVE NOTES. The movement of Federal Reserve notes has graphically reflected the results of the period of readjustment. It has further demonstrated the soundness of the view held by economists and financiers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT KG. 4—CLEVELAND. 545 that an elastic currency is one that rises and falls according to the volume and velocity of business transactions. There is an interesting parallel in the fact that on January 1, 1921, the earning assets of this bank were $253,000,000 and Federal Reserve notes in circulation $349,000,000, while on January 1, 1922, earning assets had been reduced to $133,000,000 and notes in circulation to $214,000,000. More pieces of currency were handled by our money department in 1921 than in 1920, the reduction in circulation being reflected largely in the retirement of the larger denominations, thus reflecting price declines, wage adjustments, and more economical habits of the people. FEDERAL RESERVE BANK NOTES. During and immediately following the war period, as an incidental emergency measure, the melting of silver dollars and the sale of bullion to the Allies resulted in a contraction in the volume of silver certificates, necessitating a corresponding increase in the issue of Federal Reserve Bank notes of the smaller denominations. With the recoinage of silver dollars and the consequent reissue of silver certificates, providing what it is believed will be an adequate supply of currency of smaller denominations, the volume of Federal Reserve Bank notes outstanding has been substantially reduced, declining during the year from $22,000,000 to $5,000,000. It is the intention to retire these notes from circulation as other forms of currency are provided in their stead. OPERATIONS OF BRANCHES. The branches of the Federal Reserve Bank of Cleveland at Pittsburgh and Cincinnati have continued in operation. This bank on February 10 took over the subtreasury at Cincinnati, and since that time has performed the operations formerly handled by the subtreasury so far as related to currency and coin. This has resulted in great convenience to our members in permitting them to make shipments of coin to and from this bank. The Pittsburgh branch has furnished currency service to the banks in -its territory since it was opened, and the recent addition of vault space there will permit that branch to offer coin service early in January of 1922. CLEARING AND CHECK COLLECTION DEPARTMENT. That the use of the clearing and check collection facilities of the Federal Reserve Bank of Cleveland continues to grow is evidenced by an increase of more than 5,500,000 in the number of items handled, the total number reaching nearly 48,000,000, compared with over 42,000,000 the previous year. This is an increase in the daily average number of items handled of approximately 18,000. By reason of lower prices and general business inactivity, the amount handled fell from more than $15,000,000,000 to slightly over $11,000,000,000. Schedule 6 gives the details of the operations of the check collection department. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

546 REPORT OF THE FEDERAL RESERVE BOARD. OPERATION OF COLLECTION DEPARTMENT. More than one-half of our members have made use of our collection facilities, and during 1921 there was a noticeable increase in the volume of noncash items handled. The number of coupons and securities received for collection increased considerably, as a result of the liberal policy of this bank in absorbing transportation charges on shipments of such collections. In the past year this office handled over 200,000 items, amounting to more than $205,000,000. Of these, 171,683 items were paid, and the balance (about 15 per cent) returned. Ninety-one per cent of all collection items was collected without charge, while the balance was paid at an average cost of one-tenth of 1 per cent. Other Federal Reserve Banks and branches forwarded but 5 per cent of the items handled during the year. The remainder was received from our member banks. Fifty per cent of all items forwarded to us were sent outside the district for collection. FISCAL AGENCY OPERATIONS, The sale of Treasury certificates and Treasury notes, exchanges, conversions, collection of coupons, and other fiscal agency functions, while somewhat reduced in volume, has nevertheless been maintained on such a scale as to permit of but small reduction in the working force of these departments. Each of the 18 issues of United States Treasury certificates and notes offered during the year was oversubscribed, with the exception of the first issue of Treasury notes, to which issue all subscriptions were allotted in full. The accumulation of war-loan bonds in the hands of investors would seem to be indicated by the activity of the denominational exchange division, where 355,362 pieces were received and 75,805 delivered. BUSINESS AN*) FINANCIAL CONDITIONS. Heavy losses in commercial deposits, a slight loss in savings deposits (except in some centers where heavy declines have occurred), and a considerable degree of liquidation at some points are the outstanding features of the change that has occurred in financial conditions in this district during the past year. On the basis of figures of 85 reporting member banks (complete figures for all members are not yet available), the loss in demand deposits is about 15 per cent. Time deposits have declined (on the basis of figures submitted by the larger State banks and trust companies and national banks having large savings departments) about 4ij per cent during the year. This loss has been felt more at some places than at others, and is particularly noticeable at points where economic life is sustained by a single industry, especially those having a large foreign population. Not only has the volume of earning assets of the Federal Reserve Bank shrunk about 47 per cent from the first of the year, but there has been a distinct change in the character of the assets held. At the close of 1920 this bank was rediscounting for other Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4—CLEVELAND. 547 Reserve Banks a total of $79 OOO OOO while at the end of 1921 there ? ? 7 was no such rediscounting whatever. The supply of domestic and foreign bankers' bills was small, due to business inactivity, and the total of such bills held declined $22,000,000 from that of a year ago. That liquidation throughout the district had progressed to a point where credit conditions were easier is indicated by a slight easing off in interest rates and the fact that issues of Treasury certificates and notes offered were heavily oversubscribed, particularly during the last half of the year, notwithstanding that they were less attractive as investments from the standpoint of yield than earlier issues. SCHEDULE 1.—COMPARATIVE STATEMENT OF CONDITION. [In thousands of dollars.] Dec. 31. Dec. 31, Dec. 31, 1921. 1920. 1919. RESOURCES. Gold and gold certificates 12,241 10,907 5,346 Gold settlement fund—Federal Reserve Board., 41, 455 77,016 43, 848 Gold with foreign agencies 270 10,768 Total gold held by bank 53,696 ! 88,193 59,962 Gold with Federal Reserve Agent. 177,327 I 177,636 128,795 Gold redemption fund 5,107 ! 15, 622 1,872 Total gold reserves 236,130 ! 281,451 190,629 Legal tender notes, silver, etc. 7,156! 2,228 713 Total reserves. 243,286 ! 283,679 191,342 Bills discounted: Secured by United States Government obligations. 46,168 100,010 114,525 All other 68, 426 101,333 49,992 Bills bought in open market 5,378 27,211 48, 607 Total bills on hand 119, 972 228,554 213,124 United States bonds and notes 5,356 844 844 United States certificates of indebtedness: One-year certificates (Fittman Act) 8,040 23,799 23,299 All other 284 Total earning assets.. 133,654 253,197 237,551 — Bank premises 3,952 1,520 640 5 per cent redemption fund against Federal Reserve Bank notes... 539 1,239 1,122 Uncollected items 54,273 73,629 83,698 All other resources 912 384 600 Total resources. 436, 616 613, 648 514,953 LIABILITIES. Capital paid in. 11,134 10,703 Surplus 22, 634 20,305 Deposits: Government 6,275 4,562 1,675 Member bank—reserve account. 130,933 150,347 | 129,415 All other 454 I 6,128 Total deposits. 137, 991 155,363 137,218 Federal Reserve notes in actual circulation 214, 775 348, 951 264, 738 Federal Reserve Bank notes in circulation—net liability. 5,797 22,735 22,007 Deferred availability items 43,520 54,553 71, 604 All other liabilities 765 1,038 764 Total liabilities. 436, 616 613,648 514,9^3 Ratio of total reserves to deposi land Federal Reserve note liabilities combined 69.0 158.5 i 1 49.1 1 Calculated on basis of net deposits and Federal Reserve notes in circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—MOVEMENT OP PRINCIPAL ASSETS AND LIABILITIES DURING 1921. [Amounts in thousands of dollars.] 00 Reserve Discounted bills. Purchased bills. percentages.1 Discounted for member banks Total in this district. Federal Date. a + e ( s i a 2 1 n s r + 0 e g n ) 7 t . s - ( T 3 h o e + l t 4 d a ) l . c R F B o o e e D a u f t d s o n h n i e e s r e k t r r - e v r s a d . e l ( T 2 o -3 ta ) l . S G m U e o c b v . e u y S e n r . r e t n d - ( c 5 P e + e n 4 r t ) . | | ! ! ( T 8 h o + e t l 9 a d ) l . R B F B o f e e o a r t d s o u n h e e m g e k r r h v r s a . t e l m c ( o h 7 P a p i a - u r n e s 8 k r e n - ) e d . t U s S e t n t i c a e i u t t s e r e . i d s - p T o d o s e t i - a ts l . R c n i t e r i o i c s o n e t u n e r l v . s a- e Actual. ju A st d e - d.2 O obligations. H tu 14 15 (•— Jan. 7.. 246,771 197,445 72,535 124,910 55,679 44.6 24,683 24, 683 24, 643 284,450 150,641 340,660 59. 4 74.5 14.. 220,709 173, 217 57,487 115,730 46,619 40.3 22,849 22,849 24,643 302,969 151, 229 333, 859 64.2 76.4 21.. 206,051 161,265 45,764 115,501 48,336 41.8 20,143 20,143 24,643 311,569 155, 525 322,181 66.9 76.7 28.. 210,996 142,991 31,917 111, 074 51,787 46.6 43,362 25,093 18, 269 24.643 311,527 154,970 322,562 66.1 78.2 > Feb. 4.. 199,401 116,918 26,810 90,108 35,638 39.6 57,839 25,093 32, 746 24, 644 296, 426 156,157 312, 111 65.6 78.3 11.. 212,412 136,02/) 15,354 120,666 60,914 50.5 51,748 19, 303 32,445 24, 644 301,113 156,034 316,165 65.1 72.5 18.. 190,783 119,440 14,500 104,940 47,293 45.1 46,700 14, 843 31, 857 2,4,643 309,110 153,827 306,979 68.8 75.3 tc 25.. 188,497 123,819 13,615 110,204 49,699 45.1 40,034 11,000 29,034 24.644 319,858 154,755 312,502 69.9 75.3 Mar. 4.. 188,423 125,246 12,399 112,847 51,074 45.3 38, 533 8,883 29,650 24, 644 309, 201 150, 805 302,311 69.2 74.0 If- 11.. 188,360 130,566 13,455 117,111 54,984 47.0 33,145 5,656 27,489 24,649 310, 649 154, 538 302,374 69.3 73.6 be 18.. 168,970 116,652 13,437 103,215 44,657 43.3 25,670 1,058 24,612 26,648 312,976 148,788 291,710 71.1 74.3 <* 25.. 186,915 138,230 14,663 123,567 51,075 41.3 24,012 537 23,475 24,673 307,005 155,000 293,082 68.5 71.9 Apr. 1.. 188,305 142,046 14,764 127:282 53, 403 42.0 21,596 521 21,075 21,663 285,971 146, 451 285,259 66.2 69.8 8.. 181,546 137,742 12,405 125,337 51,086 40.8 19,161 171 18,990 24,643 295,864 144,149 286,863 68.6 71.6 W 15.. 193, 854 149,903 10,669 139,234 55,844 40.1 19,184 162 19,022 24.767 278, 283 143, 560 283,489 65.2 67.7 o 22.. 187,549 145,261 5,437 139,824 54,902 39.3 17,520 17,520 24.768 284,895 144,328 280,599 67.0 68.3 »** 27.. 180,937 141,49,2 4,000 137,492 52,449 38.1 14,802 14, 802 24,643 285,756 139,853 280,320 68.0 69.0 May 4.. 189,885 153,713 3,972 149,741 60,335 40.3 11,510 11,510 24,662 276,974 148,049 276, 548 65.2 66.2 11.. 187,762 154,184 1,475 152,709 62,917 41.2 9,910 9,910 23,668 273, 812 139,431 277,093 65.7 66.1 18.. 176,081 123,731 1,225 122,506 41,553 33.9 8,691 8,691 43,659 279,812 145,167 269,829 67.4 67.7 25 155,655 126, 228 1,075 125,153 47,015 37.6 6,755 6,755 22,672 294, 469 138,412 266,951 72.6 72.9 June 1.. 167,316 138,279 138,279 51,446 37.2 6,361 6,361 22,676 286,417 141,042 267,955 70.0 8.. 175,931 147, 593 147,593 57,108 38.7 5,387 5,387 22,951 .268,144 138,910 263,451 66.0 15.. 197,568 131,473 131,473 38,346 29.2 4,443 4,443 61,652 257,977 157,869 259,509 61.8 22.. 172,909 147,026 147,026 52,066 35.4 3,231 3,231 22,652 256,410 132,888 255,402 66.0 29.. 174,275 149,157 149,157 53,102 35.6 2,390 2,390 22,728 257,703 134,839 254, 841 66.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 6. 176,147 152,264 152,264 54,259 35.6 1,228 1,228 22, 655 260,826 141,418 254,854 65.8 13. 173,232 149,258 149,258 55,122 36.9 1,304 1,304 22,670 258,275 139,798 252,084 65.9 20. 168,074 144,208 144,208 48,374 33.5 1,196 1,196 22,670 255,645 137,409 246,526 66.6 27- 168,365 144,471 7,007 137,464 42,955 31.2 1,225 1,225 22,669 249, 542 134,953 243,527 65.9 67.8 Aug. 3. 166,824 142,810 8,326 134,484 40,938 30.4 1,343 1,343 22,671 257,163 144,943 239,795 66.8 69.0 10. 161,444 138,319 5,265 133,054 44,343 33.3 1,648 1,648 21,477 258,245 138,852 240,430 68.1 69.5 17. 156,057 133,583 4,763 128,820 38,406 29.8 1,830 1,830 20,644 260,709 140,082 236,790 69.2 70.4 24. 151,593 129,626 4,079 125,547 42,921 34.2 1,323 1,323 20,644 267, 851 140,439 236,969 71.0 . 72.1 31. 146,913 124,748 6,820 117,928 43,638 37.0 1,521 1,521 20,644 264,657 136,025 234, 852 71.4 73.2 Sept. 7. 157,266 134,370 9,625 124,745 45,502 36.5 2,250 2,250 20,646 261,311 140,400 235,728 69.5 72.0 14. 156,298 133,754 9,910 123,844 45,095 36.4 1,880 1,880 20,664 259,069 142,966 233,545 68.8 71.4 21. 160,027 139, 334 13,603 125,731 40,026 31.8 1,513 1,513 19,180 249,245 140,356 228,882 67.5 71.2 28. 152,124 131,382 12,783 118,599 40,233 33.9 1,561 1,561 19,181 248,182 135,041 226,546 68.6 72.2 Oct. 5. 150,801 130,439 7,463 122,976 40,074 32.6 2,010 2,010 18,352 247,624 136,662 223,868 68.7 70.8 11. 154,571 135, Oil 7,133 127,878 41,500 32.5 2,209 2,209 17,351 244,452 136,741 223,872 67.8 69.8 19. 146,368 127,423 6,278 121,145 36,846 30.4 2,610 2,610 16,335 239,685 132,310 219,400 68.1 69.9 2 26. 147,144 129,951 5,967 123,984 40,734 32.9 2,859 2,859 14,334 244,052 136,875 218,555 68.7 70.3 Nov. 2. 146,573 128,820 5,443 123,377 41,701 33.8 3,423 3,423 14,330 240,839 135,652 215,448 68.6 70.1 9. 147,730 131,954 3,245 128,709 45,633 35.5 3,446 3,446 12, 330 238,383 132,696 218,941 67.8 68.7 td 16. 145,845 131,871 2,160 129,711 45,601 35.2 2,885 2,885 11, 089 234,550 135,023 216,598 66.7 67.3 23. 131,165 117,431 535 116,896 44,589 38.1 2,645 2,645 11, 089 255,653 136,030 216,793 72.5 72.6 a 30. 119, 234 106,244 242 106,002 38,953 36.7 2,902 2,902 10,088 258,845 132,341 213,492 74.8 74.9 H Dec. 7. 118, 074 104,496 104,496 38,149 36.5 2,448 2,448 11,130 258,131 130,3Q7 212,707 75.3 14. 130,711 114,565 114, 565 44,537 38.9 2,696 2,696 13,450 254, 323 136,962 216,640 71.9 21. 141,461 123, 888 123,888 47,275 38.2 4,103 4,103 13,470 244,559 132,565 222,823 68.8 d 28. 128,693 110,397 110,397 42,709 38.7 4,689 4,689 13,607 254,614 128,353 221,819 72.7 * T 1 Prior to Mar. 18, net deposits, as given below, were used in calculating reserve percentages: Jan. 7 $138,365,000 Feb. 4 $132,951,000 Mar. 4 $144,330,000 a 14 137,750,000 11 146,727,000 11 145,617,000 21 143, 871,000 18 142,339,000 28 148, 725,000 25 145,061,000 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. A blank in this column indicates that no accommodation was extended to or received from other Federal Reserve banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

550 REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK OF CLEVELAND MOVEMENT OF EARNING ASSETS DURING 1920 AND 1921 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 150 150 UNITED STATES SECURITIES 100 100 50 d A h k A ft/f/t*/////////w. 777? 150 PURCHASED BILLS 100 100 ii 50 i i i i 50 300 300 DISCOUNTED BILLS {SEE NOTE BELOW 250 200 150 150 100 50 50 400 400 TOTAL EARNING ASSETS 350 350 300 300 250 250 200 200 150 150 100 100 50 1920 1921 A -: Paper secured by'U. S. Government obligations discovinted for banlcs in district. B - Total paper discounted for banks in district. C - Total discounted paper held. Digitized for FRASESpRa ce between lines 3 and C represents paper discounted for other Federal Reserve banks. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4 CLEVELAND. 551 FEDERAL RESERVE BANK OF CLEVELAND DEPOSITS, F.R.NOTE CIRCULATION, CASH RESERVE1, AND RESERVE RATIOS. 1920-1921 PER CENT — ACTUAL RESERVE RAT5OS 90 ! 60 v \- 70 y r [V r 40 30 10 MILLIONS OF DOLLARS ' MILLIONS OF DOLLARS 300 200 —+-— 200 700 -1 700 DEPOSIT AND F. R.NOTE LIABILITIES, L, AND TOTAL RESERVES,C] 600 ^00 300 200 £00 too 100 'IHM 1920 1921 Adjusted percentages are calculated after Increasing reserves held by the amount of accommodation extended to other Federal Reserve banks. The deposit curve is based on "net deposits" up to March 11, 1921, and on Digitized for FRASER "tcta aopefits* thereafter* http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.—VOLUME OP BILLS DISCOUNTED AND BOUGHT. Ox to [In thousands of dollars.] Total discounted and purchased Discounted paper. Purchased paper. paper. Month. Total. S m e G g e c a o n u t t v i r o e e o d n r b n s b l . - i y - B a a a c n n c c k e e p e s t r . - s' T a a r c a n c d c e e e p s a t . - c- l t A i u v p r g e a a - r p l s i c e t a o u r n c . l d - k All other. Total. b a a a c n n c c k e e e p 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 . - I j ! 1921 1920 1919 H J F a e n b u r a u r a y ry 3 3 9 8 1 0 , , 8 6 4 9 9 4 3 3 2 1 5 8 , , 1 3 3 6 7 0 1 1, , 2 3 3 2 4 7 2 1 , ,2 5 0 2 6 6 3 10 3 0 6 i 5 6 3 9 , , 0 3 1 0 7 0 2 1 7 0 , , 5 5 9 4 3 0 2 1 5 0 , , 2 0 0 8 6 0 2,332 191 4 4 0 0 2 8 , , 3 2 8 8 9 7 3 2 0 7 7 2 , , 9 7 6 0 6 5 2 21 3 0 5 , , 8 7 7 4 5 4 O March 279,380 220,025 5,912 1,547 280 I 51,616 11,155 10,630 525 290,535 301,019 262,672 April 252,872 180,356 2,753 2,046 545 i 67,172 8,047 7,929 118 260,919 286,450 238,940 May 251,956 180,486 748 1,791 363 68,568 5,299 4,929 370 257,255 266,230 255,297 W June 277,891 184,449 111 2,664 468 90,199 3,233 3,173 60 281,124 253,543 250,886 July.../. 265,746 164,139 2,637 372 98,598 2,279 2,279 268,025 218,516 316,197 August 193,150 108,675 96 2,095 475 I 81,809 3,482 3,482 196,632 222,505 290,474 September 186,036 111,909 2,149 1,378 578 I 70,022 3,168 2,948 220 189,204 188,912 323,878 October 255,155 136,071 2,934 2,338 646 I 113,166 4,484 4,184 300 259,639 194,583 337,227 N ovember 258,272 150,975 2,006 968 104,323 3,327 3,327 261,599 245,978 311,240 December 225,832 145,020 3,885 603 1 76,324 5,237 5,154 231,069 431,865 354,177 > Total, 1921.. 3,218,833 2,225,602 17,264 I 26,119 5,734 J 944,114 87,844 83,321 4,277 246 j 3,306,677 w 1920. 2,895,670 2,369,043 10,015 | 26,377 490,235 294,602 290,734 3,076 792 i 3,190,272 1919. 3,125,857 2,873,440 14,091 238,326 261,750 256,640 721 4,389 3,387,607 I O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 4—CLEVELAND. 553 SCHEDULE 4.—EARNINGS AND EXPENSES. 1921 1920 1919 EARNINGS. Discounted bills $8,041,788 $10,570,827 $5,341,785 Purchased bills 737,533 3,064,409 1,882,985 United States securities.... 479,840 602,939 450,308 Transfers—net earnings 61,673 99,391 45,607 Deficient reserve penalties. 57,017 102,804 66,442 Miscellaneous 13,012 18,249 13,702 Total earnings.. 9,390,863 14,458,619 7,800,829 Salaries: CURRENT EXPENSES. Bank officers 194,464 143,171 99,815 Clerical staff 1,166,854 872,339 494,639 Special officers and watchmen 82,332 35,149 171444 All other 136,031 112,492 71,687 Governors' conferences 329 237 499 Federal Reserve Agents' conferences 133 100 255 Federal Advisory Council 859 1,047 1,035 Directors' meetings 7,133 6,702 5,519 Traveling expensesl 17,600 15,046 16,304 Assessments for Federal Reserve Board expenses 77,182 63,246 58,676 Legal fees 2,000 2,000 3,000 Insurance (life, fidelity, casualty, workmen's compensation, and general liability)... .* ' 52,859 37,977 33,088 Banking house: Taxes and fire insurance 31,349 Light, heat, and power 11.556 Repairs and alterations 4,120 Allother.. 20,989 170,591 67,555 Rent, including light, heat, and power, and minor alterations 148,511 Fire insurance—furniture and equipment 2,341 Printing and stationery 158,613 120,652 46,952 Telephone 14,901 8,503 6,445 Telegraph 38,018 27,153 15,084 Security shipments 8,604 Currency and coin shipments 80,170 Postage and expressage (other than on money and security ship- 153,861 106,729 ments) 91,995 Furniture and equipment 85,684 141,008 53,414 Federal Reserve currency: Original cost, including shipping charges 209,295 334,679 168.867 Cost of redemption, including shipping charges 90,999 63,519 16,981 Taxes on Federal Reserve Bank note circulation 75,920 93,322 80,491 All other expenses 145,961 67,891 31,552 Total current expenses.. 2,956,802 2,470,685 1,396,031 Current net earnings 6,434,061 11,9 6,404,798 PROFIT AND LOSS ACCOUNT. Earnings 9,390,863 14,458.619 7,800,821 2,956,802 2,470,685 1,396,039 Current expenses Current net earnings 6,434,061 11,987,934 6,404,798 Additions to current net earnings: Amounts deducted from Reserve for depreciation on United States bonds 57,296 Assessment, account of expenses Federal Reserve Board, previously charged to profit and loss , 37,209 63,246 All other , 32,229 522 Total additions 126,734 63,768 Deductions from current net earnings: Depreciation allowances on bank premises 64,759 129,551 254,6S4 Reserve for possible losses 100,000 Reserve for self-insurance 100,000 Reserve for depreciation on United States bonds 48,220 5,044 Assessments, account of expenses Federal Reserve Board.. 53,900 46,555 All other 11,653 4,730 Total deductions 276,412 231,671 311,013 Net deductions from current net earnings 149,678 167,903 311,013 Net earnings available for dividends, surplus, and franchise tax. 6,284,383 11,820,031 6,093,785 Dividends paid 660,228 604,194 556,785 Transferred to surplus account 2,329,442 11,215,837 5,537,000 3,294,713 I.... Franchise tax paid United States Government 1 Other than those connected with governors' and agents' conferences and meetings of director and of the advisory council. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

554 REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE 5.—CURRENCY RECEIPTS FROM AND PAYMENTS TO MEMBER AND NON- MEMBER BANKS. [In thousands of dollars.] Receipts. Payments. Total receipts. Total payments. From To Month. From non- To nonmember mem* member mem- 1921 1920 1919 1921 1920 1919 banks. ber banks. ber banks. banks. January 68,402 733 33,213 92 69,135 44,351 47,863 33,305 34,702 16,630 February 46,952 367 40,467 188 47,319 28,654 22,813 40,655 54,559 26,416 March 61,511 556 36,227 423 62,067 44,009 24,350 36,650 49,094 22,260 April 47,598 765 41,237 861 48,363 42,047 27,562 42,098 56,434 24,626 May 49,294 . 988 36,313 761 50,282 44,476 32,194 37,074 44,997 19,314 June - . 52,113 929 38,104 786 53,042 54,121 31,149 38,890 53,220 21,191 July 45,668 869 34,254 684 46,537 50,866 36,798 34,938 52,455 29,194 August ... 42,864 710 35,895 621 43,574 43,016 25,940 36,516 64,376 40,330 September 42,541 754 37,335 898 43,295 48,419 28,416 38,233 65,611 40,159 October 42,245 808 34,330 719 43,053 52,161 35,669 35,049 60,306 34,733 November 42,965 773 38,680 726 43,738 54,735 27,880 39,406 54,778 36,242 December 52,235 927 48,001 937 S3,162 72,193 42,662 48,938 67,450 51,028 Total/1921.. 594,388 9,179 454,056 7,696 603,567 461,752 1920.. 572,835 6,213 655,332 2,650 579,048 657,982 1919.. 377,635 5,661 358,737 3,386 383,296* "*362,'i23 SCHEDULE 6.—OPERATIONS OP FEDERAL RESERVE CLEARING SYSTEM. [Figures include cash items only.] [Numbers in thousands; amounts in thousands of dollars.] Items drawn on banks in own district. Items drawn on Located in Federal Located outside Fed- Treasurer of United Period. Reserve Bank and eral Reserve Bank States. branch cities. and branch cities. Number. Amount. Number. Amount. Number. Amount. Jan. 1-15 387 315,196 1,399 175,524 68 7,851 Jan. 16-Feb. 15. 779 573,390 2,518 306,639 98 18,048 Feb. 16-Mar. 15. 950 533,176 2,552 296,904 131 22,902 Mar. 16-Apr. 15. 1,110 644,328 2,972 351,793 192 24,585 Apr. 16-May 15.. 910 524,756 2,539 284,851 221 26,765 May 16-June 15. 962 536,570 2,722 300.836 197 20,922 June 16-July 15. 986 549,522 2,719 298', 606 182 19,757 July 16-Aug. 15. 916 493,495 2,646 277,470 127 16,389 Aug. 16-Sept. 15. 920 483,428 2,671 288,601 148 20,723 Sept. 16-Oct. 15. 958 555,029 2,808 313,207 191 17,686 Oct. 16-Nov. 15. 984 528,227 2,841 300,510 226 18,026 Nov. 16-Pec. 15. 1,049 526,836 2,937 304,609 179 17,716 Pec. 16-Pec. 31. 558 309,092 1,499 165,108 102 9,117 Total, 1921 11,469 6,573,045 32,823 3,664,658 2,062 240,487 1920 9,145 9,068,722 30;313 4,729,053 1,476 226,714 Items forwarded to oth B er a n F k e s d a e n ra d l t R h e e s i e r rve Total number.* Total amount.1 Period. branches. Number. Amount. 1921 1920 1921 1920 Jan. 1-15 59 43,151 1,913 1,541 541,722 528,427 Jan. 16-Feb. 15... 108 83,247 3,503 2,855 981,324 1,041,317 Feb. 16-Mar. 15.. 120 74,880 3,753 3,198 927,862 1,176,978 Mar. 16-Apr. 15.. 128 91,976 4,402 3,659 1,112,682 1,332,521 Apr. 16-May 15.. 104 66,106 3,774 3,416 902,478 1,209,527 May 16-June 15.. 109 65,809 3,990 3,452 924,137 1,211,769 June 16-July 15.. 106 63,571 3,993 3,596 931,456 1,360,984 July 16-Aug. 15.. 100 53,803 3,789 3,528 841,157 1,284,533 Aug. 16-Sept. 15. 108 48,639 3,847 3,620 841,391 1,300,660 Sept. 16-Oct. 15.. 122 56,085 4;079 3,780 942,007 1,393,985 Oct. 16-Nov. 15.. 124 50,107 4,175 3,784 896,870 1,348,354 Nov. 16-Dec. 15.. 151 53,510 4,316 3,729 902,671 1,252,291 Dec. 16-Dec. 31.. 33,091 2,247 2,007 516,408 693,358 Total, 1921.. 1,427 783,975 47,781 11,262,165 1920 1,231 1,110,215 42,165 15,134,704 1 Exclusive of duplications on account of items handled by both parent bank and branch; also of 92,000 items,aggregating $15,140,000, and 71,000items; aggregating $20,771,000, forwarded direct todraweebanks Digitized forin F oRthAeSr dEiRst ricts during 1921 and 1920, respectively. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO, 5—RICHMOND. CALDWELL HARDY, Chairman and Federal Reserve Agent. GENERAL REVIEW OF SERVICES AND ACTIVITIES DURING 1921, There is given below a brief outline of the services and activities of the Federal Reserve Bank of Richmond during the year 1921, showing the principal functions of the bank in the order of their importance and usefulness to member banks. Discount and purchase of paper.—The aggregate amount of paper discounted and purchased from member banks in the Fifth District during 1921 was $2,775,016,000, a daily average amount of $9,158,470. While a large proportion of the volume consisted of member banks' collateral notes secured by Government obligations, the unsecured agricultural and commercial paper discounted was $405,528,000, an increase of $35,000,000 compared with 1920. The number of bills discounted was 124,840, against 94,248 in 1920. During the year 494, or 79 per cent, of the 626 member banks in the district were accommodated through the discount or purchase of paper. The total amount of bills rediscounted with other Federal Reserve Banks was $500,000,000. Currency issue and services.—During the year 1921 currency and coin received from member and nonmember banks in the Fifth District amounted to $264,805,438, and the amount delivered or shipped to such banks was $244,778,495. The receipts of currency and coin show an increase of $70,000,000 compared with 1920, while the shipments show a smaller increase. The bank received $18,827,362 in currency during 1921 from nonmember banks, a large proportion of which was in payment of cash letters sent to nonmember par clearing banks for the account of member banks that, in turn, were in many instances collecting such checks for the account of other nonmember banks, some of them being nonpar nonmembers. The incoming cost of expressage or postage on currency shipments from nonmember banks sent in payment for cash letters (or checks) on the nonmembers has been borne by the Federal Reserve Bank. Clearing of cash items.—The transit (check collection) department during 1921* handled a total of 39,260,432 items, amounting to $8 - ? 620,888,130, an increase of 5,529,000 items, or more than 17 per cent, compared with 1920. The average number of items handled each day during 1921 was 129,572, amounting to $28,451,776, against a daily average number of 110,960 items for 1920. In addition to the above check clearing, the physical volume of which was handled through the transit department of the bank, member banks forwarded direct to other Federal Reserve Banks and 555 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

556 REPORT OF THE FEDERAL RESERVE BOARD. branches during 1921, 149,859 cash letters containing items amounting to $1,377,295,260. The amount represented by these direct routings was cleared and credited to the members7 accounts with this bank The aggregate check clearings for the Fifth District through this bank therefore approximated $10,000,000,000. Wire transfers of funds.—During 1921 the Federal Reserve Bank of Richmond made 25,130 telegraphic transfers, involving $1,149,- 717,699, an increase of 15 per cent in the number of these transactions over 1920 being noted. This service is rendered without cost to member banks. Private leased wires.—By the operation of the system of leased wires connecting all Federal Reserve Banks and branches with each other and with the Federal Reserve Board at Washington, member banks have availed themselves more freely of the very important service made possible to them through the functioning of the gold settlement fund. The total number of telegrams sent and received over the leased-wire system by the Federal Reserve Bank of Richmond during 1921 was 91,614, compared with 76,370 for the year 1920. During the year 1921 receipts and disbursements through the gold settlement fund by the Federal Reserve Bank of Richmond amounted to $12340,000,000. These enormous settlements were made by ; means of debits and credits on the books of the Federal Reserve Bank and on the books of the custodian of the gold fund, without the physical transfer of a dollar of gold. The magnitude of the saving to member banks in interest, transportation charges on money, and the cost of insurance of money is therefore quite apparent, and in this way the system is rendering an indispensable and invaluable service to commerce and industry. Collection of time items (notes, bills, drafts, etc.).—During 1921 the bank handled 99,622 noncash items, amounting to $147,586,754, an increase of 88 per cent in the number and 18 per cent in the amount, as compared with 1920. Approximately 80 per cent of the total number of items received by us for collection were paid, credit being given to member banks in the same manner in which check clearings are remitted. Fiscal agency duties.—The total number of Liberty bonds and Victory notes received and delivered during 1921 was 1,621,703, amounting to approximately $500,000,000. Coupons from United States securities received and paid during 1921 numbered 3,263,611, totaling $21,760,669, those received from members being credited to their reserve accounts upon day of receipt of coupons. The sales, redemptions, and exchanges of United States certificates of indebtedness and Treasury notes during 1921 amounted to $190,488,000, involving the handling of 62,468 pieces of these securities. Under the supervision of the auditor of the bank during 1921, 304,192 coupons, amounting to $4,004,557, were clipped from securities held by the bank as collateral or for safekeeping. The work incident to keeping account of maturities, cutting, collecting, and crediting these coupons was done without expense to member banks or the owners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5 RICHMOND. 557 FINANCIAL RESULTS OF OPERATIONS. Gross earnings of the Federal Reserve Bank of Richmond for 1921 were $6,729,679. Approximately 94 per cent, or $6,351,070, of the total gross earnings resulted from the rediscount or purchase of paper from member banks. The average rate of earning on bills discounted during 1921 was $0.0592 and on bills purchased $0.0603, compared with $0.0569 and $0.0574, respectively, for the year 1920. The average rate of earning on total invested assets during 1921 was $0.0561, compared with $0.0529 for 1920. The average daily holdings of bills discounted and purchased was $107,159,637, while that of other earning assets was only $9,620,035, the latter consisting principally of United States one-year certificates of indebtedness pledged with the United States Treasurer to secure Federal Reserve Bank note circulation of $1 and $2 denominations. Current expenses for 1921 were $2,127,174. A comparative analysis of expenses for the two years is given in Schedule 4. The classification of expenses during the year 1921 was slightly changed and considerably amplified by direction of the Federal Reserve Board, and, consequently, it will be observed from this schedule that in a few cases several items of the 1921 classification are grouped for comparison with a single amount during 1920, it being impracticable to redistribute the expenses for 1920 so as to make a comparison with each specific item in the 1921 classification. As will be noticed, current expenses during 1921 increased approximately $600,000 over ^the year 1920. This added expense is not due to increased cost for performing the same volume of work, but to a largely increased volume of work, to a large increase in the number of employees rendered necessary thereb}", and to the assumption of the expense of certain work which was previously borne by. the Treasury Department. There are, therefore, certain expense items for which there were no corresponding items in the 1920 account. The current net earnings for 1921 were $4,602,505, as compared with $5,387,195 for 1920. The percentage of net earnings to capital, capital and surplus, and capital, surplus, and deposits, for the years 1921 and 1920, are as follows: Per cent earned on capital., Per cent earned on capital and surplus Per cent earned on capital, surplus, and deposits. After paying dividends to member banks and deducting depreciation, reserves for specific purposes, and losses, the bank shows for 1921 a profit of $4,071,424, which amount, in compliance with the provisions of, the Federal Reserve Act, was available for additions to surplus and payment to the United States Government as a franchise tax. Accordingly, the distribution was made as follows: Additions to surplus—an amount equivalent to the increase in the bank's subscribed capital during 1921, plus 10 per cent of the remaining net income, $693,792.44. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

558 REPORT OF THE FEDERAL RESERVE BOARD. Payment to the United States Government, representing the entire net profit of the bank after paying dividends and making additions to surplus, $3,377,631.89. DISCOUNT OPERATIONS. The total volume of paper discounted for and purchased from member banks in the Fifth District in 1921 was $2,775,016,000, as compared with $3,397,708,000 in 1920, or a decrease of $622,692,000, the difference being more than accounted for by the decrease in the amount of discounted paper secured by Government obligations. On the other hand, the unsecured agricultural and commercial paper discounted in 1921 was $405,528,000, an increase of $35,000,000 as compared with 1920. The number of bills discounted and purchased in 1921 was 124,840, compared with 94,248 in 1920. The number of banks accommodated in 1921 was 494, against 438 in 1920, Of the aggregate amounts discounted and purchased during 1921, $2,749,671,000 was discounted for member banks and $25,345,000 represented bankers' acceptances purchased in the open market from the same banks. During 1921, 84 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 daily average number* of bills discounted and purchased during 1921 was 412, compared with a daily average of 310 for the year 1920 and 169 for the year 1919. The daily average holdings of bills discounted and purchased (exclusive of rediscounts with other Federal Reserve Banks) was $107,160,000, compared with average daily holdings of $112,431,000 for 1920 and $102,232,000 for 1919. To meet this volume of credit demands from its member banks during 1921 the Federal Reserve Bank of Richmond was compelled to borrow from other Federal Reserve Banks continuously from April to December in order to maintain required reserves against outstanding Federal Reserve notes and member banks' deposits, in amounts ranging up to $25,000,000, which was the maximum amount in rediscounts with other Federal Reserve Banks during- the year 1921 reached on June 24. During the year 1920 the peak of $30,000,000 was reached on June 15, and during 1919 the peak was $55,000,000, being reached on August 4. On December 31, 1921, 391 of the 626 member banks were discounting to the amount of $98,226,068, as compared with 361 of the 610 member banks that were discounting to the amount of $130,521,365 on December 31, 1920. The changes during the year in discount rates were, on November 3, a reduction from 6 to 5£ per cent, and on December 10 a further reduction to 5 per cent. TRADE ACCEPTANCES. During the year 1921 the bank discounted for its members $11,817,498 of trade acceptances, as compared with $1^,676,164 of this kind of paper discounted during 1920. At the close of business December 31, 1921, the bank held under discount trade acceptances aggregating $2,347,996, as against a balance of $2,005,340 on December 31, 1920. Trade acceptances discounted during 1921 and 1920 for the member banks in the several States of the Fifth District are shown in the following table: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

559 DISTRICT NO, RICHMOND. 1920 Maryland District of Columbia. Virginia 1,205,727 3.775.263 West Virginia 364,493 460,225 North Carolina 7,286,214 ,294,652 South Carolina 2,702,849 1,809,337 Total.. 12,676,164 There have been some evidences of abuse of the trade acceptance principle, but it is felt that the improper issue of this class of paper is being generally discouraged and eliminated as the instrument becomes better understood by bankers and business men. BANKERS ACCEPTANCES. Bankers' acceptances purchased during 1921 amounted to $25, 345,484, as against $51,711,557 purchased in 1920, classified for the respective years as follows: 1921 1920 Foreign business. -. $10,221,134 $41,037,088 Domestic business. 15,124,350 10,674,469 Although the aggregate amount of acceptances purchased during 1921 is approximately 50 per cent less than during 1920, it should be noted that the decrease during 1921 consisted entirely of the bills growing out of foreign business, reflecting the decrease in exports, principally of cotton and tobacco, and the decline in commodity prices. On the other hand, the purchase of domestic bills shows an increase of 50 per cent for 1921, reflecting the growth in the use of acceptances for financing domestic transactions in which also declining prices should be considered. Practically all of the bankers' acceptances were purchased directly from the accepting bank, unindorsed by any other bank, at the commercial discount rate, the average rate of earnings on acceptances handled during 1921 being 0.0603 (calculated on a 365-day basis, discount being charged on a 360-day basis), as compared with average rate of 0.0574 for the year 1920. CLEARINGS. During 1921 the Federal Reserve Bank of Richmond (including Baltimore branch transactions) handled in its transit department 39,260,432 items, aggregating $8,620,888,130, as compared with 33,731,801 items, aggregating $11,505,945,224, for the year 1920. The daily average number handled in 1921 was 129,572 items, totaling $28,451,776, as compared with the daily average of 110,960 items, totaling $37,848,504, for the year 1920. While the aggregate amount and consequently the daily average amount handled during 1921 show decreases in dollars in comparison with 1920, it is to be noted that the total number and the daily average number of items handled during 1921 show material increases. In addition to the above, our member banks sent during 1921, under special arrangements, 149,859 cash letters, containing items Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

560 REPORT OF THE FEDERAL RESERVE BOARD. amounting to $1,377,295,260, direct to Federal Reserve Banks and branches of other districts for collection and credit to the members7 accounts with this bank. The total clearings, therefore, for the Fifth District through the Federal Reserve check-clearing system, amounted to approximately $10,000,000,000. These check collections were made without cost to member banks, a facility made possible only through the functioning of the gold settlement fund for clearing items on other Federal Reserve districts, and settlement on the books of this bank for items entirely within this Federal Reserve district. NONCASH COLLECTIONS. During 1921 this department of the bank handled for collection 99,622 noncash items, amounting to $147,586,754, as compared with 52,947 items, amounting to $124,693,251, handled in 1920, an increase of 88 per cent in the number and 18 per cent in the amount compared with 1920. Of the notes, drafts, etc., handled in 1921, 81,311, amounting to $134,535,010, were paid, the collections being made without charge by the Federal Reserve Bank for its service. However, where a charge was made by the collecting bank, located outside the Reserve Bank or branch bank cities, it was passed back to the depositing bank. The proceeds of noncash collections made through the Federal Reserve Banks wrere remitted in the same manner as proceeds from check Tor cash) collections, and the time saved in comparison with that formerly required is evidenced by the continuous growth in the volume of collection transactions, and the increase in the number of member banks availing themselves of this facility through the Federal Reserve System. GOLD SETTLEMENT FUND. Transactions cleared through the gold settlement fund include balances between Federal Reserve districts on check clearings, and noncash collections, transfers of funds for the accounts of member banks and their customers and the United States Treasury, rediscounts between Federal Reserve Banks, redemptions of Federal Reserve notes, and other transactions. Receipts and disbursements through the gold settlement fund during 1921 amounted to $12,340,000,000. A very large portion of this represented credits to member banks' accounts, arising out of the clearing of checks sent by this bank to other Federal Reserve districts, or sent by other Federal Reserve districts to this bank for payment. The increased volume is shown in the following aggregate settlements of the Federal Reserve Bank of Richmond made through the gold settlement fund in each year from 1918 to 1921: 1918 $5, 069, 000, 000 1919 13, 032, 000. 000 1920 16,158, 000, 000 1921 12, 340, 000, 000 Although the number of transactions during 1921 exceeded the number during 1919 or 1920, the amount was smaller. Comparing 1919 and 1921, the decrease in amount is due to a decline in the amount of transfers of United States Treasury funds between Federal*Reserve Banks, and comparing 1920 and 1921, the decrease in amount is due to a decline in the volume of check clearings, although the number Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5—RICHMOND. 561 of checks handled in 1921 increased over 5,500,000 as compared with 1920. In addition to the check-clearing operations referred to in the paragraph on "Clearings," 25,130 telegraphic transfers, aggregating $1,149,717,699, were made during 1921 for the account of member banks through the gold settlement fund, compared with 21,836 transfers in 1920, aggregating $1,246,861,158, an increase of 15 per cent during 1921 in the number of these transactions compared with 1920. NOTE ISSUES. In preceding years the minimum amount of Federal reserve notes* in circulation was reached during the summer months, followed by an upward tendency, the maximum for each year being reached during December. However, a contrary movement was noted for the year 1921 in that the usual increase during the last three months of the year did not follow the course established in the previo.us years. The amount of notes in circulation was highest at the beginning of 1921, the month of January averaging daily $152,000,000, in comparison with $137,000,000 in January, 1920. A gradual tendency to decline was then shown, the lowest daily average for any month in the year of $107,000,000 being reached in September, 1921, in comparison with $138,000,000 in September, 1920. This was followed Dy only nominal increases, the month of December, 1921, averaging daily $109,000,000, in comparison with $150,000,000 in December, 1920. MOVEMENT OF MEMBERSHIP. The number of national banks increased 6 during the year, from 554 to 560, and the number of State bank members shows a net increase of 10, from 56 to 66, or an increase in the total number of ail member banks in the district during 1921 from 610 to 626. The aggregate stock subscriptions increased during the year from 105,386 shares (50 per cent paid, $5,269,300) to 108.571 shares (50 per cent paid, $5,428,550). The combined capital and surplus of the 14 new State bank members admitted during 1921 is $1,835,300, with resources aggregating $9,077,535. During the year one State member bank, having total capital and surplus of $60,000, withdrew from membership, two were consolidated with national banks, and one was converted into a national bank. The number of nonmember banks in the district on December 31, 1921, is M,570, of which about 797 have sufficient capita] to make them eligible for membership. RELATIONS WITH MEMBER BANKS—NATIONAL AND STATE. Due to the increased demands upon the department of bank examination, organized in 1919, this department of the bank was expanded during 1921 by the addition of three examiners, three assistant examiners, and twTo stenographers. In the work of the examining department, the endeavor has been not only to examine the member banks efficiently but to bring about a better understanding of the purpose and operation of the Federal reserve system and the proper use of its functions. Members of the examining department made 63 special visits to member banks for the purpose of giving helpful counsel and advice. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

562 REPORT OF THE FEDERAL RESERVE BOARD. In all cases the member banks were materially assisted in this way in correcting unsatisfactory conditions. In addition to the above, members of the examining department made 30 trips in connection with campaign for par clearance of checks during 1921, and also developed a comprehensive system of analysis of examiners' reports and the compilation of various comparative data and certain credit information. BALTIMORE BRANCH. The volume of business transacted by the Baltimore branch during 1921, which is included in the total transactions of the bank, indicates considerable decreases in value in practically every department, but there were increases in the physical volume of business transacted during the year in almost all departments. Nine State banks in the branch zone applied for "membership during- 1921, five of which became members. Field representatives, in addition to establishing more cordial relations by personal visits, spent considerable time in making more satisfactory arrangements for par remittances. The Baltimore branch has for some time rendered a distinct service to Baltimore banks by effecting daily settlements of clearing-house balances by debits or credits to the reserve accounts of member banks. This method has simplified the settlement of clearing-house balances and has removed the risk involved in transporting large sums of money from one bank to another, which was formerly necessary. During 1921 settlement of clearing-house balances, aggregating $1,658,684,165.82, was made by the Baltimore branch. BUSINESS AND AGRICULTURAL CONDITIONS. As in the previous several years, the bank continued to publish during 1921, for circulation among bankers and business men, a monthly report of general business and agricultural conditions in the Fifth Federal Reserve District. This report is the outgrowth of the monthly statement regarding general business and agricultural conditions in the district originally sent by the Federal Reserve Agent only to the Federal Reserve Board for its information. It is a summary of the district's important financial, industrial, commercial, and agricultural activities, based upon direct inquiry and upon the analysis of current banking and business statistics, which serves as one of the agencies for keeping in the closest possible touch with business needs and changes in all parts of the district. The report is distributed free of cost to member banks and to others upon request. FISCAL AGENCY OPERATIONS. As fiscal agent of the United States Government the Federal Reserve Bank of Richmond continued during 1921 to receive and disburse funds for the account of and under instructions from the United States Treasury Department. The bank handled the sale, delivery, and redemption of United States certificates of indebtedness, Treasury notes, and Government savings securities in this district and also the exchange, conversion, and registration of Liberty loan bonds and Victory notes for banks and the public. The analysis of the United States Treasurer's general account for the year 1921 shows total receipts and total disbursements for account of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5—RICHMOND. 563 the United States Treasurer, each aggregating approximately $1,000,000,000, which reflects the continued large volume of fiscal agency transactions handled. Sales during 1921 of United States certificates of indebtedness and Treasury notes amounted to $111,628,000, the redemptions amounted to $59,604,000, and the receipts and deliveries in connection with denominational exchanges of these securities amounted to $19,256,000, or a total of $190,488,000 in such transactions, consisting of an aggregate number of 62,468 pieces. The redemption of war savings stamps and the sales of Government savings securities involved the handling of 540,182 individual items, aggregating approximately $2,500,000. The total number of pieces of Liberty bonds and Victory notes received and delivered was 1,621,703, amounting to nearly $500,000,000. Coupons from United States securities paid and charged to the account of the Treasurer of the United States during the year numbered 3,263,611, aggregating $21,760,669. SCHEDULE 1.—COMPARATIVE STATEMENT OF CONDITION. [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, 1921. 1920. 1919. KESOTJRCES. Gold and gold certificates 2,663 5,702 2,420 Gold settlement fund—Federal Reserve Board. 19,094 20,429 ! 25,201 G old with foreign agencies 162 6,435 Total gold held by bank 21,757 26,293 34,056 Gold with Federal Reserve Agent. 38,057 53,699 ! 39,999 G old redemption fund 4,962 6,797 7,197 Total gold reserves 64,776 86,789 81,252 Legal tender notes, silver, etc. 6,781 363 190 Total reserves. 71,557 87,152 j 81,442 Bills discounted: Secured by United States G overnment obligations 41,047 45,955 81,507 All other . 53,621 69 518 23 495 Bills bought in open market 3,558 5,048 16,405 Total bills on hand 98,226 120 521 121 407 United States bonds and notes 1,233 1,234 1,235 United States certificates of indebtedness: One-vear certificates (Pittman Act) 3,760 12,260 12,260 All other 9 Total earning assets 103,219 134,017 134,902 Bank premises 2 545 1 277 504 5 per cent redemption fund against Federal Reserve Bank notes 188 • 601 643 Uncollected items 46 414 59 875 94 193 All other resources 305 566 1,184 Total resources 224,228 283,488 312,868 LIABILITIES. Capital paid in 5,429 5,269 4,392 Surplus 11,030 10,561 5,821 Deposits: Government 4 456 2 899 2 840 Member bank—reserve account. 56 127 57 085 62 712 Allother 438 288 3,615 Total deposits 61,021 60,272 69,167 Federal Reserve notes in actual circulation 107,101 155 169 145,765 Federal Reserve bank notes in circulation—net liability 3,516 11,467 12,058 Deferred availability items 35,620 40,202 75,323 All other liabilities 511 548 342 Total liabilities 224,228 283,488 312,868 Ratio of total reserves to deposit and Federal Reserve note liabilities combined 42.6 144.5 U1.5 i Calculated on basis of net deposits and Federal Reserve notes in circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES DURING 1921. [Amounts in thousands of dollars.] Discounted bills. Reserve percent- Discounted for member banks ages.2 Date. ( e 2 a T a + s r o s n 7 t e i a + n t l s 8 g ) ( T h 4 e o - l t 3 d a ) l . c R F B R o o e w e a u e t d s n h i d n e e t k e i t h r r s e r v s a - d . e l ( T 2 o + t 3 a ) l . in t b h u S o y i m o e b s c v U l e u d i e g n r . i r a e t s S n - d t . - rict P . ( e 5 r - c 4 e ) n . t m i b n a B o r u o i k l g p l e s h e t n t .1 U s S e t n i c t e a i u t s t e r e . i d s - re T s c e a o r s t v a h e l s. I R Fe e ti d s o e e n r r v . a e l Actual. ju A ste d d - .3 tions. 5 10 12 13 Jan. 131,083 112, 485 5,000 117,485 49,684 42.3 5,103 13,495 90, 314 60, 706 154,158 46.2 43.6 3 ^ 134, 030 110,290 4,729 115,019 49,731 43.2 5,245 18, 495 86,155 59, 793 150, 865 44.2 128, 941 110,587 5,000 115, 587 51,967 45.0 4, 859 13, 495 92,036 61, 784 151,774 47.1 © 130,623 112,173 112,173 50,282 44.8 4,955 13, 495 95, 461 63,099 151,371 47.4 Feb. 4. 126,595 108, 226 108, 226 45.1 4,874 13,495 98,059 60, 581 150, 454 49.0 11. 124, 478 105, 906 105,906 48, 909 46.2 5, 077 13, 495 98,251 60,918 148, 542 49.5 18. 125,797 108,293 108,293 50,825 46.9 4,009 13,495 97,339 59, 884 149,346 48.9 25. 126, 395 109,289 109, 289 49.763 45.5 3,611 13,495 97,167 58, 746 150,218 48.6 Mar. 4. 124, 731 107,966 107, 966 48, 825 45.2 3,270 13, 495 99,970 59, 809 152,154 49.8 11. 125,353 108,651 108,651 50,201 46.2 3, 207 13,495 101, 352 61,676 151, 877 50.0 U2 18 .......... j 126,411 108,671 108,671 50,663 46.6 3,245 14,495 96,834 59,309 150,182 46.2 hrj Apr. 2 1 5 1 | 1 1 2 3 8 3 , , 7 5 8 9 1 8 1 1 1 1 7 2 , ,1 3 5 0 3 5 1 1 1 1 2 7 , , 1 3 5 0 3 5 4 52 9 , , 9 8 8 7 0 7 4 4 4 5 . . 6 1 3 2 , , 1 7 3 9 3 8 1 13 3 , , 4 4 9 9 5 5 9 8 1 4 , , 9 9 9 5 5 9 6 6 4 3 , , 3 2 5 0 8 4 1 14 4 5 2 , , 9 4 5 9 3 9 4 41 3 . . 2 9 ::::: % 8 ! 130, 879 115,142 115,142 49,688 43.2 2,243 13,494 83,680 58, 945 141,016 41.8 t*J 15 | 127, 539 112,321 112,321 48,148 42.9 1.724 13,494 80,692 56,113 139, 678 41.2 W 22 | 127, 899 112,580 10, 000 122, 580 53, 640 43.8 1,825 13,494 84,131 58,316 |138, 832 42.6 37.6 p 27 1 130,581 115, 286 10,000 125,286 53, 823 43.0 1,801 13,494 80.053 58,198 I136, 559 41.1 36.0 £ May 4 | 123,064 107, 867 14,857 122,724 50,185 40.9 1,703 13,494 86.054 55,548 135, 733 45.0 37.2 2 11 1 124, 823 109,668 10,000 119,668 50, 905 42.5 1,661 13, 494 78,939 55,370 133,129 41.9 36.6 P 18 1 125,570 110,117 9,885 120,002 51,905 43.3 1,959 13, 494 78, 541 56,668 129, 734 42.1 36.8 25 i 123,460 108,477 15,000 123,477 54,080 43.8 1,989 12,994 75,991 55,342 i127,109 41.7 33.4 June 1 | 118,155 105,630 15,000 120,630 52,127 43.2 2,031 10, 494 74,177 54,122 i126. 730 41.0 32.7 8 i 119, 412 106,122 15,000 121,122 51,971 42.9 2,796 10,494 76, 557 55,008 125,345 42.4 34.1 115. 5 1 1 3 9 79 113,979 99, 492 20,000 119, 492 50,704 42.4 2,993 11,494 77,281 54,166 122, 516 43.7 32.4 22. 112.921 99,790 24,775 124, 565 50,750 40.7 2,638 10,493 75, 768 52, 572 120, 976 43.7 29.4 29. 109,550 24,974 123, 833 50, 547 40.8 2,198 8,493 78, 726 52,109 119,501 45.9 31.3 July 6. 114,467 103.938 19, 875 123,813 49, 533 40.0 2,036 8,493 73, 449 55, 501 120,202 41.8 30.5 13. 110.922 101,040 20,000 121,040 48,904 40.4 3,389 72, 915 52, 883 116,864 43.0 31.2 20. 114,436 104,330 19,460 123, 790 50.764 i 41.0 1, 613 8,493 69,673 54, 012 114, 881 41.3 29.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

27 109, 739 99, 232 24,435 123,667 49, 801 40.3 2,014 I 8,493 73,425 54,694 113,254 43.7 29.2 Aug. 3 106,184 97,101 24, 950 122,051 47, 700 39.1 1,590 7,493 76, 598 56,109 112, 044 45.6 30.7 10 106,097 96,888 24,002 120, 890 47,164 39.0 1,716 7,493 74,742 53,684 111, 705 45.2 30.7 17 110, 248 100,346 20,000 120,346 48,546 40.3 2,409 7,493 71, 570 52, 974 109,675 44.0 31.7 24 111, 399 102, 565 19, 950 122, 515 50, 363 41.1 2,341 6,493 66,919 54, 874 107, 915 41.1 28.9 31 112,302 103, 463 20,000 123,463 50,453 40.9 2,346 6,493 64,609 53, 987 107,006 40.1 27.7 Sept. 7 105,666 96,902 24, 861 121,763 49, 567 40.7 2,271 6,493 66,934 51, 506 107,740 42.0 26.4 14 108, 019 99,077 24,970 124,047 51,060 41.2 2,449 6,493 66,288 52, 954 106,129 41.7 26.0 21 109, 796 100,398 24,728 125,126 49, 718 39.7 2,905 6,493 67, 400 53,978 107,969 41.6 26.3 28 106,056 97,960 24,903 122, 863 48, 333 39.3 3,103 4,993 70, 717 54,500 107,292 43.7 28.'3 Oct. 5 107, 533 98,870 19,518 118,388 46,475 39.3 3,670 4,993 70,658 54,468 109,647 43.1 31.2 11 103, 572 94, 893 20,000 114, 893 45, 529 39.6 3,686 4,993 70,767 54, 512 109,426 43.2 31.0 19 107,360 98, 873 14,407 113,280 46, 573 41.1 3,494 4,993 72,974 54, 843 108,173 44.8 35.9 26 103,920 95,347 15,000 110,347 45,934 41.6 3,580 4,993 73, 493 55,621 107,128 45.2 35.9 Nov. 2 108,709 100,046 4,200 104,246 41, 877 40.2 3,670 4,993 69,374 54, 484 107,688 42.8 40.2 Dec. 2 2 3 2 1 1 7 9 8 3 0 1 4 6 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 3 6 5 4 9 6 7 , , , , . , , , 3 3 0 5 2 3 2 2 7 3 2 6 3 5 5 2 1 3 5 6 9 2 2 5 1 9 9 9 0 9 9 9 9 0 7 4 6 5 7 8 2 , , , , , , , , 6 4 3 5 9 6 5 2 8 3 1 4 7 6 3 8 7 7 3 2 2 0 0 5 1 4 5 5 0 , , , , 3 0 0 00 0 0 2 0 0 0 4 • 1 1 1 1 0 9 9 9 0 0 0 9 2 0 5 7 4 3 5 7 , , , , , , , , 9 3 6 2 6 5 4 8 1 4 8 6 8 3 3 9 3 2 5 0 7 0 7 6 4 3 4 4 3 4 4 4 9 1 3 2 8 1 2 2 , , , , , , , , 9 1 8 2 2 5 5 8 3 4 4 5 5 8 5 9 1 7 2 3 0 0 5 5 4 4 4 4 4 4 4 4 1 0 1 2 1 2 3 0 . . . . . . . . 1 7 9 4 4 2 1 8 3 3 3 3 4 3 3 3 , , , , , , , , 0 7 6 9 7 8 6 3 0 9 9 9 0 0 4 4 1 3 9 8 2 9 5 6 4 4 4 4 4 4 4 4 , , , , , , , , 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 3 3 3 3 3 3 3 3 7 7 7 7 7 7 7 2 2 7 4 0 2 1 , , , , , , , 2 1 5 3 3 9 7 0 1 8 9 3 3 5 9 9 2 1 3 0 7 5 5 5 5 6 5 5 5 5 6 4 3 0 4 5 7 , , , , , , , , 2 0 0 4 0 6 5 3 6 0 6 9 6 4 7 5 8 7 3 4 9 5 4 9 1 1 1 1 1 1 1 1 0 0 0 0 1 0 1 0 9 8 1 6 9 7 0 7 , , , , , , , , 6 2 9 0 1 3 3 8 5 2 6 3 6 2 1 4 9 4 0 6 9 0 0 0 4 4 4 4 4 4 4 4 1 4 4 6 3 4 5 2 . . . . . . . . 3 1 2 7 8 5 3 0 — 3 4 3 4 8 8 1 1 . . . . 6 1 1 3 W H B H o Mg 1 No acceptances were bought from or sold to other Federal Reserve Banks. 2 Prior to Mar. 18, net deposits,as given below, were used in calculating reserve percentages: Jan. 7 $41,440,000 Feb. 4 $49,601,000 Mar. 4 $48,737,000 2 1 1 4 4 4 3 3 , , 8 9 0 5 1 1 , , 0 0 0 0 0 0 1 1 1 8 4 4 9 9 , ,7 89 8 7 3 , ,0 0 0 0 0 0 11 51,024,000 g 28 50,232,000 25 49,664,000 a 3 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 A blank in this column indicates that no accommodation was extended to or received from other Federal Reserve Banks. o OS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

566 REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK OF RICHMOND MOVEMENT OF EARNING ASSETS DURING 1920 AND 1921 MILLIONS OP DOLLARS MILLIONS OF DOLLARS 6O 60 UNITED STATES SECURITIES 40 40 20 m mm d 20 w, MM 0, O o 40 40 PURCHASED BILLS 20 20 O 100 160 DISCOUNTED BILLS 'see NOTE BELOW) 140 120 120 100 100 80 80 60 60 20 160 TOTAL EARNING ASSETS 140 140 120 120 100 100 80 60 40 20 1920 1921 A - Paper secured by U. 3. Government obligations discounted for banks in district. 8 - Total paper discounted for banks In district. C • Total discounted paper held. Space between lines B and C represents paper rediscounted with other Pederal reserve banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5 RICHMOND. 567 FEDERAL RESERVE BANK OF RICHMOND DEPOSITS, F.R. NOTE CIRCULATION, CASH RESERVES AND RESERVE RATIOS, 1920-1921 PER CENT PER CENT 80 80 ACTUAL RESERVE 70 70 60 60 50 50 4-0 —\ ^»—.^> **• ^\ , / 40 V y 30 y* 30 20 20 10 to MILLIONS OF DOLLARS MILLIONS OF DOLLARS 150 150 DEPOSITS 100 100 y 50 IIIIIII1II1111111 i I III 50 250 250 F.R. NOTE CIRCULATION 200 200 150 150 frr.7^ WA 100 m yyy,v/y,y// % m yyy % YA% yy/y 7 'A 7 /A r> 'AA/ 100 m vi % y//y m y 4,<y//, 50 m % VV// V// V/s '4 YYYf vi, AV i /'/^.yy. V '< / / / /,.VA/ 50 m v/y,yy/J 1 300 300 DEPOSIT AND F.R. NOTE LIABILITIES ,"L, AND TOTAL RESERVES^' 250 250 200 %^ 200 150 150 1920 1921 Adjusted percentages are calculated after reducing rcaenrea held' by the amount of accoraraodation received from other Federal Eeaerve banks. The deposit curve is based oa "net deposits'* up to March 111 1921, 4ad on "total deposits* "theroaftar. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.—VOLUME OP PAPER DISCOUNTED AND BOUGHT. OX a? [In thousands of dollars.] Discounted paper. Purchased paper. Total discounted and purchased paper. Month. Total. by S m e G c e o u n v re e t d rn- a T c r c a e d p e t- l t i A u v r e g a - r l s i c t a o u n c l d - k All other. Total. B a a c n c k ep e t r - s' 1921 1920 1919 o obligations ances. paper. w January 197,045 5,103 25,760 2,933 2,933 231,729 309,244 287,440 February 225,299 195,648 956 4,002 24,693 1,695 1,695 226,994 268,407 279,178 March 298,974 257,237 1,114 4,863 35,760 2,665 2,665 301,639 338,353 338,680 April 292,130 248,127 1,044 5,288 37,671 1,228 1,228 293,358 300,562 367,170 May 212,392 179,017 669 4,715 27,991 726 726 213,118 296,817 370,925 June 243,033 199,464 816 5,217 37,536 2,154 2,154 245,187 290, 865 402,866 July 209,409 171,509 818 5,009 32,073 1,650 1,650 211,059 254, 500 425,446 August 214, 763 176, 722 560 4,547 32,934 1,647 1,647 216, 410 270,093 388,492 September 214,743 174,144 971 4,626 35,002 2,670 2,670 217,413 284,900 350,148 O N c o t v o e b m er ber 1 1 9 9 7 9 , , 0 6 2 0 1 2 1 1 6 6 3 7 , , 8 9 9 8 6 1 1 1 , , 2 4 0 2 2 2 5 5 , , 4 4 0 0 9 5 2 2 6 4 , , 7 5 9 1 0 8 3 2 , , 0 9 2 3 9 9 2 3;, 9 0 3 2 9 9 2 2 0 0 2 0 , , 5 0 4 5 1 0 2 2 4 4 4 4 , ,6 6 1 4 5 7 3 26 2 7 3 , , 8 9 8 9 6 3 December 213, 509 181,110 1,357 5,000 26, 042 2,009 2,009 215,518 295,030 381,696 Total, 1921 2, 749,671 2,311,900 11,817 59,184 366,770 25, 345 25,345 2,775,016 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 j K W O > Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 5 RICHMOND. 569 SCHEDULE 4.—EARNINGS AND EXPENSES. 1921 1920 1919 Discounted bills $6,166,477 $5,920,893 $4,099,953 Purchased bills 184,592 477,557 351,418 United States securities 196,299 276,991 185,293 Deficient reserve penalties. 175,797 216,559 125,192 Miscellaneous 6,514 11,270 13,468 Total earnings. 6,729,679 6,903,270 4,775,324 CURRENT EXPENSES. Salaries: Bank officers 149,702 105,945 74,796 Clerical staff 858,861 617,525 326,746 Special officers and watchmen 29,941 15,066 7,497 All other 62,102 34,749 16,283 Governors' conferences..' 550 401 254 Federal Reserve Agents' conferences 88 125 43 Federal Advisory Council 493 546 736 Directors7 meetings 7,021 6,318 6,219 Traveling expenses * 33,931 26,248 8,689 Assessments for Federal Reserve Board expenses 38,723 34,555 29,535 Legal fees 4,292 1,070 570 Insurance (life, fidelity, casualty, workmen's compensation, and general liability) 20.709 15, 732 9,718 Banking house: * Taxes and fire insurance 7,941 Light, heat, and power. 4,093 R A e ll p a o i t r h s e a r. nd 1a lat~lt~e r•a*-t'i--ons. 1 1 6 , , 3 1 3 57 3 39,693 35,879 Rent, including light, heat and power, and minor alterations 16,331 Fire insurance—furniture and equipment 1,313 Printing and stationery 8r, 378 84,345 39,083 Telephone 4,910 3,415 2,447 Telegraph 34,210 27.604 10,032 Security shipments 14.710 Currency and coin shipments 53,003 Postage and expressage (other than on money and security ship- 107,469 92,575 ments) 74,691 Furniture and equipment 197,329 103,126 49,420 Federal Reserve currency: Original cost, including shipping charges 262,614 170,101 119,347 Cost of redemption., including shipping charges 77,712 45,719 28,582 Taxes on Federal Reserve Bank note circulation 32,240 52.605 32,468 All other expenses 40,796 23,688 21,008 Total current expenses.. 2,127,174 1,516,075 911,927 Current net earnings 4,602,505 5,387,195 3,863,397 PROFIT AND LOSS ACCOUNT. Earnings 6,729,679 6,903,270 4,775,324 Current expenses 2,127,174 1,516,075 911,927 Current net earnings 4,602,505 5,387,195 3,863,397 Additions to current net earnings: Amounts deducted from Reserve for depreciation on United States bonds 6, 827 58,606 Assessments account expenses Federal Reserve Board, previously charged to profit and loss 25,531 All other. 4,202 5,859 940 Total additions. 11,029 I 31,390 59,546 Deductions from current net earnings: De,p. rec. ia..t ion allow..a..n ces on b..a..n k. prr <emises. 54,069 170,000 20,000 Reserve for possible losses. 100,000 Reserve for self insurance. 50,000 Reserve for depreciation on United States bonds 5,8 Assessment account expenses Federal Reserve Board. 25,531 All other 15,838 4,214 146 Total deduct ions 219,907 180,079 45,677 Net deductions from current net earnings 208,878 148,689 2 13,869 Net earnings available for dividends, surplus, and franchise tax. 4,393,627 5, 238,508 3,877,266 Dividends paid 322,203 293,052 252,872 Transferred to surplus account 693,792 4,740,869 3,624,394 Franchise tax paid United States Government 3,377,632 204,585 1 Other than those connected with governors' and agents' conferences and meetings of directors and of the advisory council. 2 Additions (net). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

570 REPORT OF THE FEDERAL RESERVE BOARD, SCHEDULE 5.—CURRENCY RECEIPTS FROM AND PAYMENTS TO MEMBER AND NON- MEMBER BANKS. [In thousands of dollars.] Receipts. Payments. Total receipts. Total payments. ,From To Month. From non- To nonmember mem- member mem- 1921 1920 1919 1921 1920 1919 banks. ber banks. ber banks. banks. January 23,796 2,487 17,116 24 26,283 21,049 24,463 17,140 9,649 8,020 February 15,609 1,430 21,434 28 17,039 12,055 13,560 21,462 13,789 10,005 March 23,088 1,630 17,325 76 24,718 13,824 13,295 17,401 15,535 9,452 April 20,555 1,689 19,805 194 22,244 16,573 15,936 19,999 18, 450 8,408 May. . 22,712 1,513 18,026 153 24,225 16,191 15,117 18,179 16,824 9,267 June 21,675 1,547 20, 218 138 23,222 16,014 13,213 20,356 19,957 9,604 July 18,880 1,286 18 437 178 20,166 14,755 13,673 18,615 21,186 11,224 August 19,430 1,469 17,705 121 20,899 13,968 10,360 17,826 23,221 14,506 September 18,202 817 23,902 173 19,019 13,256 8,526 24,075 125,942 22,761 October 18,860 1,4S9 21,952 137 20,349 15,048 11,182 22,089 28,186 34,882 N ovember 19,921 1,601 20,589 189 21,522 18,511 12,351 20,778 23,541 17,688 December 23,249 1,870 26,696 163 25,119 23,255 17,600 26,859 26,738 21,504 Total, 1921.. 245,977 18,828 243,205 1,574 264,805 244,779 1920.. 183,687 10,812 1242,761 257 194,499 1243,018 1919.. 168,273 1,003 176,976 i 345 "i.69,276* **i77,32i 1 Exclusive of $960,000 shipped to a member bank in another Federal Reserve District. SCHEDULE 6.—OPERATIONS OF FEDERAL RESERVE CLEARING SYSTEM. [Figures include cash items only.l [Nunibers in thousands; amounts in thousands of dollars.] Items drawn on banks in own district. Period. an R d e b se ra rv n e c h B c a i n t k ies. B F L a e o n d c k e a r t a a e n l d d R o e b u s r t e a s r i n d v c e e h I U te T n m r i e t s e a d s d u r r a S e w t r a n t o e f o s. n R I t e t o t h s e e e m o r i t r v s h e e b f r B r o a r F a n w n e c a d k h r e s d e r s e a a . d l nd cities. N b u er m . Amount. N b u e m r. - | | Amount. N b u e m r. - Amount, N b u e m r. - Amount. Jan. 1-15 157 149,594 1,347 191,172 49 7,719 48,114 Jan. 16-Feb. 15.. 304 279,049 2,552 339,782 90 18,087 203 90,870 Feb. 16-Mar. 15. 319 249,078 2,238 293,540 87 17,032 192 79,794 Mar. 16-Apr. 15. 368 276,162 2,586 338,401 119 25,656 236 88,600 Apr. 16-May 15.. 325 244,378 2,349 290,884 125 17,022 185 71,391 May 16-June 15. 345 251,836 2,518 314,045 117 18,120 216 85,314 June 16- July 15. 332 244,639 2,403 311,394 108 18,796 204 94,164 July 16-Aug. 15. 321 245,023 2,326 297,226 100 14,038 196 81,797 Aug. 16-Sept. 15. 331 237,223 2,349 297,982 98 14,837 194 83,256 Sept. 16-Oct. 15. 354 280/443 2.526 352,962 113 14,193 202 111,952 Oct. 16-Nov. 15. 362 282,966 2,637 357,220 124 13,886 209 106,927 Nov. 16-Dec. 15. 383 277,988 2,755 350,050 110 17,416 216 105,223 Dec. 16-Dec. 31.. 202 140,331 1,395 178,257 50 121 53,976 Total 1921. 4,103 3,158,710 29,981 3,912,915 1,290 205,284 2,473 1,101,378 1920 3,467 4,277,607 25,528 4,505,282 1,074 208,088 3,266 2,287,494 1919 2,625 3,981,345 15,197 3,092,407 786 165,877 2,204 1,844,390 Total number.* Total amount.1 Period. 1921 1920 1919 1921 1920 1919 Jan. 1-15 1,652 1,094 684 396,599 445,670 336,632 Jan. 16-Feb. 15... 3,149 2,071 1,399 727,788 848,822 722,286 Feb. 16-Mar. 15.. 2,836 2,348 1,366 639,444 824,092 559,222 Mar. 16-Apr. 15.. 3,309 2,895 1,691* 728,819 1,000,357 635,018 Apr. 16-May 15.. 2,984 2,847 1,618 623,675 911,497 630,057 May 16-Junel5.. 3,196 2,767 1,607 669,315 947,020 672,394 June 16-July 15.. 3,047 2,707 1,657 668,£93 964,699 712,089 July 16-Aug. 15.. 2,943 2,555 1,681 638,084 921,245 719,824 Aug. 16-Sept. 15.. 2,972 2,766 1,696 633,298 955,826 744,969 Sept. 16-Oct. 15.. 3,195 2,943 1,922 759,550 1,005,895 931,600 Oct. 16-Nov. 15.. 3,332 2,980 2,184 760,999 990,923 1,007,798 Nov. 16-Dec. 15.. 3,464 3,477 2,102 750,677 979,936 897,985 Dec. 16-Dec. 31.. 1,768 1,885 1,205 381,046 482,489 514,145 Total, 1921. 37,847 i, 378,287 1920. 33,335 11,278,471 1919.. 20,812 9,084,019 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. 6—ATLANTA. JOSEPH A. MOCORD, Chairman and Federal Reserve Agent. REVIEW OF SERYICE AND ACTIVITIES. That all the departments of the Federal Reserve Bank of Atlanta were fully engaged during the year in giving service to member banks is attested by the brief statistics which follow. The month of January, 1921, showed 339 banks, from a total membership of 467, obtaining discount accommodation; the closing month of the year showed 379 borrowing banks from a total membership of 515. The number of bills handled for discount or rediscount and of bills purchased was 159,437, as compared with 112,125 for the preceding year, an increase of 42 per cenx, notwithstanding the aggregate amount showed a decrease of approximately $602,140,000. Currency operations for the year showed a total handling of 112,- 500,000 pieces, aggregating $763,177,000, consisting of shipments to member banks and to other Federal Reserve Banks, amounting to $264,564,000 and $69,352,000, respectively. The receipts from member banks for the year amounted to $340,735,000 and from other Federal Reserve Banks $88,526,000, the total amount received being $429,261,000. In check clearing operations, exclusive of duplications on account of handling by both parent bank and branches, a total of 19,388,000 items were handled, aggregating $3,990,981,000, which shows as compared with the preceding year a numerical increase of 2,816,000, but a decrease of $1,390,315,000. A total of 25,570 wire transfers of funds, amounting to $751,404,000 were consummated for member banks, all telegraphic costs involved being absorbed by this bank. Payments through the gold settlement fund, to the Federal Reserve Agent, to the United States Treasurer, and to other Federal Reserve Banks aggregated $2,287,699,388. In the bond department there were 2,540,660 pieces handled, having an aggregate value of $179,403,000. The handling of subscriptions and redemptions of United States Treasury certificates of indebtedness showed a total for the year of operations amounting to $108,253,600. The volume of securities handled by our custody division amounted to $758,015,500. FINANCIAL RESULTS OF OPERATION. Comparative balance sheets.—Schedule No. 1 shows a comparative statement of condition of the Federal Reserve Bank of Atlanta as at the close of business December 31, 1919, 1920, and 1921. Upon a 571 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

572 EEPOET OF THE FEDERAL RESERVE BOARD. comparison of this statement, it will be noted that the aggregate resources and liabilities for the year 1921 are approximately $60,000,000 less than the figures shown for the previous year. The greater portion of this decrease is due to the reduction of our earning assets, which were at the close of business December 31,1921, $113,393,093.48, against $152,960,892.63 as of December 31, 1920. It will also be noted that while our loans decreased approximately $40,000,000, our member banks7 reserve accounts were only reduced approximately $6,000,000. Our total reserves as of December 31, 1921, were approximately $13,000,000 less than as compared with the same date last year. Comparative statement—earnings and expenses.—In Schedule No. 4 is shown a comparative statement of earnings and expenses for the years 1919, 1920, and 1921. The gross earnings for the year 1921 were $7,406,651.86, against $7,476,431.46 for the year ending December 31, 1920. It will be noted that the expenses for the year 1921 are approximately $195,000 in excess of those shown for the year 1920. A portion of this increase is due to the fact that fiscal agent expenses aggregating $34,000 odd, since July 1, have been absorbed by the Federal Reserve Bank, and it will also be noted that the cost of Federal Reserve currency during 1921 was approximately $72,000 in excess of figures reported during the previous year. Comparative profit and loss statements.—Schedule No. 4 also shows a comparative statement of the profit and loss account for the 12months periods ended December 31,1919, 1920, and 1921. From this statement, it will be noted that the net earnings available for dividends, surplus, and franchise tax for the year 1921 were $5,496,218.49, as compared with $6,010,324.13 during the previous year, or a decrease of approximately $514,000. The net earnings for the year 1921 have been distributed as follows: Dividends paid $245, 861. 62 Transferred to surplus funds 770,105. 68 Franchise tax paid United States Government 4, 480, 251.19 Total net earnings 5, 496. 218. 49 DISCOUNT OPERATIONS. Activity in discount operations for the year 1921 was fully as marked as during 1920, although liquidation was shown by many member banks. Out of a total of 515 member banks, 444 had paper under rediscount at some time during 1921. The maximum was reached in September and December, 379 banks being accommodated in each month. The maximum number of notes handled in any one month was reached in January, when 14,922 items were handled, as against 18,013 items handled during the month of December, 1920. The average number of notes, however, was considerably greater than for the year 1920, the total number of notes rediscounted for 1921 being 159,437, as against 112,125 for the year 1920. The distribution of discount and open-market operations given in Schedule No. 3 shows a decline in dollars, the grand total for the year 1921 being $1,669,383,156, as compared with $2,271,522,757. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6 ATLANTA. 573 The average daily holdings also show a considerable decrease, .the total earning assets being at the maximum in the first month of the year, $149,242,513, as compared with $161,758,391, the maximum reached during the month of November, 1920. The movement of earning assets is given in Schedule No. 2, showing distribution of same by weeks, and also the ratio of assets secured by war obligations to the total. This ratio reached the maximum in the second week of March, when paper secured by war obligations amounted to 42.2 per cent, as compared with 64.7 per cent in January, 1920, the high point of the preceding year. This ratio decreased gradually during the year, until December, 1921, when it shrunk to 21.2 per cent. The liquidation of this class of paper was far greater during 1921 than any previous year. Rediscounting with other Federal Reserve Banks reached the peak in January, 1921, in the amount of $29,083,000, as against $48,856,000 in the month of October, 1920. During five months of the year 1921 no rediscounting was done with other Federal Reserve Banks. BANKERS' AND TRADE ACCEPTANCES. Bankers' acceptances in this district are created almost entirely from transactions arising out of the domestic storage of cotton and the exportation of that commodity. The movement of cotton during the past year, due to influences from both domestic and foreign conditions, has not required the amount of credit customarily needed during a cotton season. The market has not absorbed spots in large quantities, as domestic and foreign mills only buy in small quantities for immediate consumption. Under such conditions an extension of open-market operations is not feasible,- and until there is a normal movement of the staple, acceptances will not be created in sufficient amounts to create an open market for such bills. The Federal Reserve Bank of Atlanta has purchased the greater part of all acceptances offered in this district, and has also aided the Federal International Banking Co. in the marketing of its bills drawn against export transactions. There has been no material increase in the use of trade acceptances in this district during the past year. Conditions have been such that the activities of manufacturers and commercial houses have been greatly curtailed. We believe, however, that great effort has been expended in popularizing the use of this form of credit. RESERVE POSITION. Our reserve position at the beginning of 1921, while showing an actual percentage of 41.4 per cent, would have shown a percentage of 27.7 per cent in the absence of rediscounts with other Federal Reserve Banks. A liquidation of loans ensued, though at times fluctuating, and on February 16 rediscounts with other Federal Reserve Banks had been repaid, leaving this bank with a reserve percentage of 42.3 per cent, it being the first time since May 13, 1920, that borrowings with other Federal Reserve Banks were not necessary in order to maintain our reserve position. From February 16 until July 23 caring for demands of member banks was possible from our own resources, but on July 23 it again became necessary to obtain Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

574 REPORT OF THE FEDERAL RESERVE BOARD. assistance from other Federal Reserve Banks, which graduallyincreased in amount until the peak of $20,423,000 was reached the latter part of September. From that time on, liquidation of loans to member banks made possible a gradual reduction of our own borrowings, and they were entirely eliminated on December 12, when we were once again able to maintain our position without assistance. During the remaining three weeks of the year it did not again become necessary to rediscount with other Federal Reserve Banks, but, on the contrary, further liquidation by member banks of their borrowings produced a gradual improvement in our reserve position, and at the close of the year it stood at 43.3 per cent. MEMBER BANKS' RESERVE ACCOUNTS. The gradual reduction in member banks' reserve balances, which became apparent in the latter part of 1920, continued during the year 1921. This condition reflected a corresponding shrinkage in the deposits of member banks during the same period. Reserve balances were highest in January, when they reached $53,016,000, and lowest in September, when they were reduced to $39,221,000. As compared with the previous year, the average daily reserve balances were $10,035,000 less in amount. Wire transfers of funds made to other Federal Reserve districts for account of our member banks were 15,346 in number and amounted in total to $411,673,934, while transfers of funds received from other districts for account of our member banks were 15,828 in number and amounted to $624,845,281. FEDERAL RESERVE NOTES. The outstanding Federal Reserve notes at the close of business December 31, 1921, were $128,644,005, as compared with $179,760,000 at the close of business December 31, 1920, or a decrease of $51,116,000. During the year the Federal Reserve. Agent issued notes amounting to $148,940,000, including $32,220,000 shipped by this bank to Havana, Cuba, at the request of the Federal Reserve Bank of New York for account of its member banks and $4,300,000 issued to our own member banks for shipment to Cuba. The amount of fit money redeemed by the Federal Reserve Agent during the year was $70,671,000, and there were shipped to the Comptroller of the Currency for redemption unfit notes aggregating $129,384,535, making the total redemption of fit and unfit Federal Reserve notes $200,055,535 for the year. It is interesting to note the increasing amount of unfit money redeemed, as follows: • From organization of bank to Dec. 31, 1917 $10, 882,580 Twelve months ending Dec. 31, 1918 17,022,135 Twelve months ending Dec. 31, 1919 65,072,465 Twelve months ending Dec. 31, 1920 85,493, 280 Twelve months ending Dec. 31, 1921 129,384,535 Total 307,854,995 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

575 DISTRICT NO. 6 ATLANTA. FEDERAL RESERVE BANK NOTES. On account of the circulation of new silver certificates in small denominations during the year 1921, the necessity for Federal Reserve Bank note circulation of $1 and $2 denominations was greatly reduced. On January 1, 1921, the Federal Reserve Bank of Atlanta had outstanding circulation of Federal Reserve Bank notes, secured by special certificates of indebtedness, amounting to $16,169,800. During the year there was issued to the bank by the Comptroller of the Currency $10,532,000, the majority of which consisted of notes of $1, $2, and $5 denominations. There were redeemed by the Treasury Department during the year notes aggregating $18,498,500, leaving a net balance outstanding on December 31, 1921, $8,203,300. Special certificates issued to secure the circulation of Federal Reserve Bank notes have been redeemed by the Treasury Department in practically the same ratio as the redemption of circulating notes. SHIPMENTS OF CURRENCY. During the year 1921 the volume of currency handled by the money department varied slightly from the previous year. The actual number of individual shipments received by the bank and the actual number of deliveries made bj the bank to its members and to nonmembers at the request of its members greatly exceeded those of 1920. Figures covering the receipts and disbursements of currency for the years 1920 and 1921 are as follows: Receipts. Disbursements. From From non- To nonmeml~ers. members . Total. To members. members. Total. 1921.. $327,111,000 $13,624,000 $340,735,000 $225,996,000 $38,568,000 $264,564,000 1920.. 321,312,000 14,173,000 335,485,000 247,886,000 41,090,000 288,976,000 During the year 1921 shipments of mutilated currency to Washington for redemption by the Federal Reserve Bank of Atlanta amounted to $200,680,500. CLEARINGS. The transit department functioned with increased efficiency during 1921, showing an increase in the number of items handled, but a decrease in the amounts. The total number of items handled, including duplications on account of handling by both the parent bank and branches was 20,336,039, against 17,883,808 for 1920, an increase of 2,452,231, or 13.7 per cent. The total volume of business for 1921 aggregated $4,378,840,000, against $6,131,660,000 for 1920, a decrease of $1,752,820,000, or 28.6 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

576 REPORT OF THE FEDERAL RESERVE BOARD. COLLECTIONS. The collection department continued to show a steady increase. During 1921 it handled 79,348 items, as compared with 49,694 items for 1920, an increase of 29,654 items, or 59.6 per cent. The amount of collections received during 1921 aggregated $98,213,591.48, as compared with $89,911,329.48 for 1920, an increase of $8,302,262, or 9.2 per cent. It is interesting to note that during 1921, 65,500 items, aggregating $84,671,327.14, were paid. These items were handled free of charge for member banks, except where a charge was made by the collecting bank. GOLD SETTLEMENT FUND. Transactions through the gold settlement fund, covering regular daily settlement as well as special transfers, including rediscounts with other Federal Reserve Banks, aggregated $4,584,752,936, which amount represents payments of $2,287,694,388 and receipts of $2,296,058,548. FOREIGN ACCOUNTS. As in 1920, this account was comparatively inactive, the account showing a dormant balance of $134,000 from January 3 to through March 10 and from March 11 through December 31 of $288,000. TREASURER'S GENERAL ACCOUNT. The Treasurer's account continued to show increased activity, transactions consisting of redemption of checks and warrants, coupons, Treasury certificates, transfers of funds, official deposits, etc. Our records show that we redeemed 1,196,509 checks and warrants for the Treasurer's account, amounting to $212,059,830; coupons, 2,649,- 701, amounting to $15,698,828; certificates, 15,012, amounting to $48,995,500; miscellaneous advices and transfers, 26,554, amounting to $269,416,238. The total number of items charged to the Treasurer's account for the year was 3,887,776, amounting to $546,170,397; and credits to this account included 22,063 items, aggregating $553,667,920. PRIVATE WIRE OPERATIONS. Total messages of all kinds sent and received over the private wires amounted to 163,804. Total commercial messages sent and received over commercial wdre loops was 18,046. These wires embrace transactions originating in every department of the bank and represent communications of member banks, individuals, other Federal Reserve Banks, the Federal Reserve Board, the Treasury Department, etc. MOVEMENT OF MEMBERSHIP. National banks.—During the year the national-bank membership increased from 375 to 386 by the addition of 17 new national banks organized in the district and the surrender of stock by 6 member Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6 ATLANTA. 577 national banks, 5 of these having liquidated and 1 absorbed by other banks. A net increase of 11 national-bank members for the year was the result, as compared with an increase of 12 during 1920 and a decrease of 3 during 1919. State banks.—The State bank and trust company membership increased from 87 to 129 during the year by the allotment of stock to 49 new members and the surrender of stock by 7 member State banks, which were either liquidated, absorbed by other banks, or converted to national banks, resulting in a net increase of 42 State bank and trust company members, as compared with an increase of 23 in 1920 and 10 in 1919. The net increase of 42 State bank and trust company members in 1921 exceeded all previous years since the organization of the Federal Reserve Bank of Atlanta, and was only approached in 1917, when 36 State bank and trust company members were admitted. E X A M IN ATIO N S. During the year 46 examinations were made of State banks applying for membership, 42 of these banks being accepted. The Federal Reserve Bank's examiners made two independent examinations and participated with State bank examiners in the examination of 136 State bank and trust company members. In addition, 41 national banks were examined at the request of the Comptroller of the Currency, making a total of 225 examinations participated in or made by Federal Reserve Bank examiners. The policy of participating with State examiners in the examination of State bank members has been pursued during the year as heretofore, and the banking departments of all the States in the district have given their hearty cooperation. These joint examinations are being made in thorough accord and harmony with the State superintendents of banking, and the member banks have offered every facility to expedite the examinations where the Federal Reserve Bank has participated. TRUSTEE POWERS. During the year fiduciary powers, under section 11, subsection (k) of the Federal Reserve Act, were granted to five national banks, bringing the total number of banks in the district which have been granted authority to act in a fiduciary capacity up to 70. The majority of national banks which have been granted fiduciary powers are located in the larger cities of the district where there is more demand for the exercise of such powers. ACCEPTANCE UP TO 100 PER CENT. During the year only one bank was authorized to accept up to 100 per cent. The banks in the district which have been granted this authority now number 33, these being located largely in reserve cities, where more use is made of this form of financing in order to handle foreign transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

578 REPORT OF THE FEDERAL RESERVE BOARD. OPERATION OF FEDERAL RESERVE BANK BRANCHES. The operations of our New Orleans, Birmingham, Jacksonville, and Nashville branches and Savannah agency continued on a large scale. The New Orleans branch, having a maximum membership in its zone of 54 banks, was at all times during the year extending accommodations to a minimum of 37 banks, and at times to as high as 44 banks. The total amount of accommodation extended by it to member banks during the year was $531,847,402.79. Its receipts of currency totaled $111,504,209, and its shipments of currency amounted to $156,924,726, the former showing an increase of about 20 per cent and the latter over 100 per cent. In its check clearing and collection operations, 3,037,868 items were handled at a total value of $903,400,000, showing a numerical increase but a decrease in dollar value. Rediscounts and advances made to member banks in the Birmingham zone amounted to $75,421,319.89, with approximately two-thirds of the 76 member banks in its zone being accommodated at one time or another. Currency receipts amounted to $38,307,000, as against $47,891,000 for the preceeding year. Currency shipments amounted to $38,648,000, as compared with $36,691,000 during 1920. In its check clearing and collection operations, this branch handled 4,538,326 items, a numerical increase of over 50 per cent, whereas the total value, $846,320,000, showed a decrease as compared with the preceding year. Of the 72 member banks located in the Jacksonville zone, over 60 per cent at one time or another were being accommodated through discount operations, the aggregate for the year being $110,391,000, as compared with $99,296,000 for 1920. Currency receipts at that branch amounted to $59,529,000, as compared with $45,480,000 during the preceding year. Currency shipments amounted to $84,721,000, as against $33,856,000 for 1920. The number of items handled for check clearing and collection amounted to 2,848,428, of a total value of $527,548,000, showing an increase both in number and amount. Of the 86 member banks located in the Nashville branch zone, over 60 per cent were at one time or another during the year receiving discount accommodation, the aggregate amount for the year being $389,947,000, as compared with $665,496,000 for the preceding year. Currency receipts by that branch amounted to $41,921,000, as compared with $27,449,000 in 1920. Currency shipments by that branch amounted to $39,513,000, as compared with $21,862,000 during 1920, showing a large increase in both. In the performance of its check clearing and collection operations, 3,560,000 items were handled, having the total value of $634,195,000, showing an increase in the physical volume but a decrease in the aggregate amount. The Savannah agency, though limited in the scope of its operations, continued to function in a manner that facilitated the transactions between the member banks located in Savannah and the parent bank in Atlanta. Its existence, and the knowledge that it had an ample stock of currency to care for emergency demands, was no doubt a source of relief to our member banks when the closing of some small institutions might have been the cause of serious disturbances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6 ATLANTA. 579 FISCAL AGENCY OPERATIONS. The fiscal agent department of the Federal Reserve Bank of Atlanta w$s active throughout the year. There was a continuous flow of business and, taken as a whole, a large amount of detail work was handled. Sale of Treasury certificates and gold notes.—During the year 1921 there were seven offerings of certificates of indebtedness of the loan series and nine offerings of the tax series, with two offerings of gold notes. It will be understood that on occasions, two and possibly three of these offerings bore the same date. The total sale for the year of the loan series was $21,818,500, tax series $29,335,000, Treasury gold notes $8,104,600, giving a grand total of the three series combined of $59,258,100. During the early part of the year this district did not sell its full quota of certificates, but toward the latter part the subscriptions were far in excess of the quota. # Deposits and withdrawals of Treasury funds.—Of the total amount of sales of certificates and gold notes sold for the year, $44,981,000 were placed in the special deposit accounts of banks. These deposits were withdrawn according to instructions of the Treasury Department in the usual manner followed in previous years. Denominational exchange of securities.—In the denominational exchange division there were received during the year 102,732 pieces of various denominations, which aggregated $13,644,350, for which there were delivered in various denominations 14,485 pieces, aggregating the same amount. Temporary permanent exchange.—During the year, 655,394 pieces of temporary coupon bonds were received in exchange for a like amount of permanent coupon bonds, aggregating $142,402,300. Bond exchange and conversion transactions.—There were received during the year bonds and notes, coupon for registered, registered for coupon, registered for registered, and transferred bonds, aggregating 53,512 pieces, against which were delivered 42,402 pieces, the face value of which is $18,247,100. Inheritance tax.—This department received during the year 622 pieces of bonds, amounting to $484,100, in part payment of inheritance taxes, delivered to us by the internal-revenue collectors. Sale of war savings securities.—The sale of war savings securities only indicates the amount sold and delivered by the Federal Reserve Bank of Atlanta, and does not include sales made through postmasters throughout the district. The sale of thrift stamps, war savings stamps, Treasury savings stamps, and Treasury savings certificates for the year aggregated 6,409 pieces, amounting to $93,789. The amount of these securities redeemed for the year 1921 aggregated 1,147,249 pieces, totaling $4,531,401.25. Redemption of United States certificates of indebtedness.—There were redeemed for the Treasury Department United States certificates of indebtedness for the year 1921, 15,012 pieces, aggregating $48,995,500. Other activities.—During the year 1921, the fiscal agent department was of considerable service to banks throughout the district in buying and selling Government securities, other than the stated offerings of Treasury certificates. Certificates of indebtedness and bonds amounting to $7,189,250 have been bought and sold. This has been a dis- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

580 REPORT OF THE FEDERAL RESERVE BOARD. tinct service to the various banks in the district and is one which seems to be appreciated. WAR FINANCE CORPORATION. Transactions engaged in by this bank, acting as fiscal agent for the War Finance Corporation, have greatly increased since the amendment to section 24 of the War Finance Corporation Act and the establishment of the Corporation of Agricultural Loan Agencies in the several States comprising this district. The amount of advances made by the corporation through this bank and its branches is shown by the following schedule: Advances under section 24 (to banks): Georgia 95, amounting to $2, 554, 859. 21 Florida 4, amounting to 118, 000. 00 Louisiana 2, amounting to 760, 335. 89 Total 101, amounting to 3, 433,195.10 Advances under section 22 (exports): Georgia 3, total 1,450, 500. 00 Louisiana 1, total 6, 328, 789. 02 Combined total sections 24 and 22 12, 212, 434.12 It is believed that the functioning of this governmental agency in supplying credit to the agricultural communities of the district, particularly with respect to advances made to nonmember banks, has been, of invaluable aid to the agricultural interests of the South. MONEY MARKET. There was a gradual decline in the demand for money throughout the year. The lower price levels prevailing made possible the transacting of the year's business with a much smaller actual volume of money. The total loans and investments of 43 member banks in selected cities of the district were $100,000,000 smaller on December 28, 1921, than on December 24, 1920, and the total of bills discounted for member banks and bought in the open market by the Federal Reserve Bank of Atlanta fell from $138,567,000 (exclusive of $33,518,000 rediscounted with other Federal Reserve Banks) on December 28, 1920, to $98,070,353 on the same date in 1921. Demand deposits of the 43 member banks declined from $234,538,000 in December, 1920, to $213,528,000 in December, 1921, and, in spite of unemployment, wage declines, and other conditions, savings deposits at the end of December, 1921, were approximately the same as one year earlier. Business firms have almost invariably reported collections slow. In the last month or two of the year, however, reports were received indicating improvement in collections in the cities, while liquidations in farm paper has not taken place to the extent expected earlier in the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT JSTO. 6—ATLANTA, 581 SCHEDULE 1.—COMPARATIVE STATEMENT OF CONDITION. [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, 1921. 1920. 1919. RESOURCES. Gold and gold certificates 5,159 8,744 8,413 <Md settlement fund—Federal Reserve Board.. 14,806 7,442 19,333 Gold with foreign agencies , 119 4,728 Total gold held by bank 19,965 16,305 32,474 •Gold with Federal Reserve Agent. 45,225 60,710 63,503 •Gold redemption fund 5,450 10,298 7,940 Total gold reserves , 70,640 87,313 103,917 Legal tender notes, silver, etc. 5,642 2,027 991 Total reserves. 76,282 89,340 104,908 Bills discounted: Secured by United States Government obligations.. 24,420 61,440 66,392 All other 66,407 71,161 26,660 Bills bought in open market 3,686 3,571 16,639 Total bills on hand 94,513 136,172 109,691 United States bonds and notes 10,314 116 379 United States certificates of indebtedness: One-year certificates (Pittman Act). 8,564 16,664 15,664 Another 2 9 2 Total earning assets.. 113,393 152,961 125,736 Bank premises 1,008 541 463 •5 per cent redemption fund against Federal Reserve Bank notes 525 561 879 Uncollected items , 23,592 31,406 48,267 All other resources 729 381 147 Total resources. 215,529 275,190 280,400 •Capital paid in. 4,189 4,053 3,428 Surplus 9,114 8,343 4,695 Deposits: Government 11,213 3,716 2,707 Member bank—reserve account. 42,967 49,172 58,388 Allother 303 2,779 Total deposits. 54,516 53,191 63,874 Federal Reserve notes in actual circulation 121,471 173,406 155,511 Federal Reserve Bauk notes in circulation—net liability. 8,034 15,175 15,561 Deferred availability items 17,480 20,360 37,131 All other liabilities 725 662 200 Total liabilities. 215,529 275,190 | 280,400 Ratio of total reserves to deposit and Federal Reserve note liabilities combined . 43.3 141.4 150.4 1 Calculated on basis of net deposits and Federal Reserve notes in circulation. 85227—22 38 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—MOVEMENT OP PRINCIPAL ASSETS AND LIABILITIES DURING 1921. Ox 00 [Amounts in thousands of dollars.] fcO Discounted bills. Reserve percent- Discounted for member banks ages.2 Date. ( e 2 a T a + s r o 7 s n t e + i a n t 8 l s g ), T he o l t d al c R o o w u e th i n d t e t i h e s r - d in t b h S y i e s c U u d r i . e s S d tr . ict. m i b n B a o r o u i k l p g l e s e h t n t .i U s S e t n i c t e a i u t s t e r e . i d s - re T s c e a o r s t v a h e l s. R n F c o i t e e r i t d s c o e e u e s n r r l . v a i a n - e l (4-3). R F B e e a d s n e e k r r v a s e . l ( T 2 o + t 3 a ) l . G o m b o l v e ig e n r a t n - - Per cent Actual. ju A st d e - d.8 tions. 11 12 13 Jan. 7. 150, 828 130,288 29,083 159,371 63,804 40.0 3,758 16,782 87,700 51,562 173, 018 41.4 27.7 14. 148,048 127,636 24,284 151,920 63,023 41.5 3,630 16,782 84,583 48,738 169,913 41.2 29.4 21. 147,707 127,621 22,060 149,681 62,301 41.6 3,304 16, 782 84,460 48,993 169,209 41.2 30.4 28. 145,850 125, 827 17,578 143,405 61,311 42.8 3,241 16,782 85,980 47,401 166, 570 42.0 33.4 Feb. 4. 146,597 127,055 13,442 140, 497 59,696 42.5 2,760 16,782 90,431 47,168 170,366 43.0 36.6 11. 148,031 128,626 5,115 133,741 58,491 43.7 2,623 16,782 88,252 48, 872 169, 288 42.0 39.5 18. 147,039 128,175 128,175 59,212 46.2 2,082 16.782 87, 446 48, 807 166,261 41.9 25. 143,154 124.693 124.693 58,150 46.6 1,678 16.783 46,673 165,284 42 7 Mar. 4. 143,043 125,062 125,062 58,482 46.8 1,199 16,782 89,387 48,318 162,929 43.2 11. 137,503 119.694 119.694 58,035 48.5 1,027 16,782 92, 551 50,424 160,527 45.3 18. 140,798 123,049 123,049 58, 596 47.6 968 16,781 90,402 58,644 158,270 41.7 25. 141,282 123,757 123,757 57,762 46.7 744 16.781 90,016 58,208 156,026 42.0 Apr. 1. 141,225 123,733 123,733 56, 571 45.7 711 16, 781 84,776 52,545 153, 554 41.1 8. 135,917 118,408 118,408 54,355 45.9 727 16.782 86,020 48,722 152,453 42.8 15. 130,167 112,276 112,276 52,433 46.7 742 17,149 95,244 45,850 158, 648 46.6 22. 133,202 116,295 116,295 52,893 45.5 718 16,189 93,158 46,433 157, 384 45.7 27. 131,089 113,640 113,640 51,784 45.6 1,260 16,189 92, 330 45,390 155,530 46.0 May 4 130,154 112, 857 112,857 50,019 44.3 1,108 16,189 93,815 47,162 155,982 46.2 J J u u l n y e 2 2 2 1 1 1 1 6 1 9 8 2 1 8 5 3 5 . . . . . 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 3 2 2 2 4 5 2 6 5 7 0 7 6 6 , , , , , , , , , , 2 6 3 1 8 5 4 5 8 6 6 7 7 6 4 7 8 2 6 1 9 0 4 0 7 8 6 6 3 7 1 1 1 1 1 1 1 1 1 0 9 0 0 0 0 0 0 0 0 2 9 6 4 8 6 2 2 0 0 , , , , , , , , , , 7 9 2 8 7 2 2 8 0 5 9 9 5 3 9 7 1 9 3 8 0 4 5 6 4 3 7 8 2 6 1 1 1 1 1 1 1 1 1 9 0 0 0 0 0 0 0 0 0 9 6 4 6 8 2 0 0 2 2 , , , , , , , , , , 7 8 9 5 7 8 2 2 2 0 9 9 8 3 7 1 9 5 9 3 0 4 6 6 3 7 4 5 8 2 4 4 4 3 3 3 3 3 3 3 7 7 7 4 8 6 8 9 8 5 , , , , , , , , , , 8 6 7 2 7 6 1 4 0 3 0 8 7 5 9 7 6 3 5 6 0 5 2 5 7 0 7 1 4 3 3 4 4 3 4 3 3 3 3 3 , 5 4 6 4 7 7 8 5 4 4 . . . . . . . . . . 5 4 0 9 9 3 4 7 8 8 '1 1 1 1 1 1 , , , , , , 9 9 0 9 1 2 1 1 0 9 3 0 2 3 0 2 6 3 6 1 8 0 5 2 8 5 7 2 1 1 1 2 2 2 2 2 2 6 6 4 6 3 3 4 4 3 5 , , , , , , , , , , 1 4 4 1 1 3 7 7 7 3 8 7 7 4 4 1 0 0 4 2 9 9 9 9 9 6 7 5 8 4 1 1 9 9 9 9 8 0 8 8 8 0 8 6 3 1 3 5 9 5 1 5 , , , , , , , , , , 7 6 0 3 9 5 7 5 8 4 5 9 0 7 9 3 7 1 4 8 9 9 9 2 2 4 8 8 4 6 4 4 4 4 4 4 4 4 4 4 8 6 6 7 6 4 6 6 5 4 , , , , , , , , , , 6 1 1 4 8 4 8 3 0 3 7 7 2 3 8 8 1 5 3 2 9 9 3 8 3 0 2 9 5 3 1 1 1 1 1 1 1 1 1 1 5 5 5 5 4 5 5 5 4 5 9 7 9 3 7 9 7 0 3 4 , , , , , , , , , , 8 0 1 7 1 3 6 6 3 9 8 2 1 8 1 3 3 3 7 0 2 6 0 3 8 7 6 3 0 5 4 4 4 4 5 4 4 4 4 4 9 4 0 4 4 6 6 8 6 3 . . . . . . . . . . 5 6 0 6 7 4 2 8 3 1 REPORT OF THE O W w Is! tel hi <i W w J> HMH Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20.. 127,611 101,659 101,659 34, 898 34.3 1,247 24,705 76,923 44,903 141,341 41.3 27.. 125,863 99,843 4,007 103,850 34,913 33.6 1,317 24,703 76,217 44,106 138,670 41.7 39.5 Aug. 3.. 125,600 104,941 1,751 106,692 35,651 33.4 964 20,695 73,572 45,745 135,723 40.5 39.6 10.. 121,911 100,180 1,521 101,701 34,459 33.9 1,066 20,665 74,088 43,586 133, 805 41.8 40.9 17.. 124,135 102,331 2,071 104, 402 35,023 33.5 1,140 20,664 72,178 44,576 131,745 40.9 39.8 24.. 122,365 100, 648 7,971 108,619 35,612 32.8 1,054 20,663 69,479 44,005 129, 250 40.1 35.5 31.. 119,275 99,473 8,926 108,399 35,078 32.4 878 18,924 69,486 42,874 127,468 40.8 35.6 Sept. 7.. 120,456 100,086 9,669 109, 755 35,248 32.1 1,446 18,924 70,761 44,953 128,962 40.7 35.1 14.. 122, 860 101,770 12,673 114, 443 36,068 31.5 2,166 18,924 70,103 47,030 127,393 40.2 32.9 21.. 123,251 100,775 16,430 117,205 36,867 31.5 3,503 18,973 73,058 47,698 128,934 41.4 32.1 28.. 122,859 99,397 20,095 119, 492 37,419 31.3 4,490 18,972 71,627 47,711 127,359 40.9 29.4 Oct. 5.. 124,005 99,958 17,195 117,153 36,921 31.5 5,083 18,964 74,146 43,947 134,064 41.7 32.0 11.. 120,604 96,172 16,378 112,550 33,345 29.6 5,468 18,964 73,726 45,850 130,309 41.9 32.6 19.. 121, 462 96,630 14,096 110,726 32,492 29.3 5,869 18,963 70,000 44, 599 128,224 40.5 32.3 26.. 119, 594 94, 491 15,956 110, 447 32,033 29.0 6,142 18,961 71,390 46,156 126,163 41.4 32.2 Nov. 2.. 118,789 93,758 15, 263 109,021 31,571 29.0 6,078 18,953 71,083 44,487 125,780 41.7 32.8 9.. 117, 570 92, 753 10,668 103,421 30,181 29.2 5,864 18,953 71,728 45,751 123,676 42.3 36.0 O 16.. 119,071 94, 459 7,931 102,390 29,840 29.1 5,660 18,952 68,058 45,951 122,823 40.3 35.6 JH 23.. 119,630 95, 734 7,176 102,910 30, 111 29.3 4,946 18,950 68,613 46,576 121, 557 40.8 36.5 LJ 30.. 116, 237 92,764 7,488 100,252 28,741 28.7 4,531 18,942 66,109 43,369 119,799 40.5 35.9 £ Dec. 7.. 116,337 92,592 4,298 96, 890 26,926 27.8 3,88? 19, 858 68,104 44,894 119,175 41.5 38.9 HH 14.. 117, 489 93,504 93,504 24,966 26.7 3,808 20,177 67,648 45,765 119,035 41.0 O 21.. 119,235 96,183 96,183 25,284 26.3 3,522 19,530 71,548 49,963 121,795 41.7 H 28.. 117,616 94,426 94,426 25, 346 26.8 3,644 19,546 75,790 54, 565 123,387 42.6 1 No acceptances were bought from or sold to other Federal Reserve Banks. Jan. 2 Prio7r to March 18, net deposits, as given$ 3b8e,lo64w5,, 0w0e0re u F s e e b d . in c 4 a . lculating reserve percentages: $40,172,000 Mar. 4 $44,036,000 I 14 35,529,000 11. 40,993,000 11 43,862,000 J 21 36,022,000 18. 42,461,000 28 38,249,000 25. 40,657,000 3 Adjusted percentages are calculated after increasing or reducing reserves held by the amount of accommodation extendted to or received from other Federal Reserve Banks. A bllaannkk in this column indicates that no accommodation was extended to or received from other Federal Reserve Banks. OO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

584 REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK OF ATLANTA MOVEMENT OF EARNING ASSETS DURING 1920 AND 1921 MILLIONS OF DOLLARS MILLIONS OF DOLLARS UNITED STATES SECURITIES I 1 d pp 20 0 40 40 PURCHASED BILLS -LULL % //// tZZLZ2rssr scsa rrrf 200 200 DISCOUNTED BILLS 180 (SEE NOTE BELOW± 180 160 160 14-0 140 120 80 80 60 4-0 20 180 180 TOTAL EARNING ASSETS 160 160 140 140 120 120 100 100 80 60 20 1 HittHI ?! 1920 1921 A -- taper secured by U.S. Government obligations discounted for banks in district. 8 - Total paper discounted for banks in distriot. 0 - To^al discounted paper held. Space between lines 8 and 0 represents - Miere above line B - paper discounted tor, Digitized for FRASEaRnd - where below line B - paper redisoounted with, other Federal Heserve BanXa. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 6—ATLANTA. 585 FEDERAL RESERVE BANK OF ATLANTA DEPOSITS, F.R.NOTE CIRCULATION, CASH RESERVES AND RESERVE RATIOS, 1920 -1921 PER CENT •ACTUAL RESERVE RATIOS ADJUSTED 80 70 60 50 50 40 -A, —%> \ / 30 / 20 V 10 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 150 DEPOSITS 100 100 d 50 i111 i 1iii11 I 1 1 i II III150 200 F. R. NOTE CIRCULATION 150 150 100 100 50 50 300 300 DEPOSIT AND F.R. NOTE LIABILITIES,"!-', AND TOTAL RESERVES,MC 100 100 50 50 * « I * * ^.Cr>q.< go C<j C u ^ ^ ^ cj- ^ ?- ^ ^ Z 1920 1921 Adjusted percentages are calculated after reduoing or increasing reserves held by the amount of acoonraodation received from or extended to other Federal Reserve banks. The deposit curve is based on "net deposits" up to March 11, 1921, and on "total depoBits* thereafter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.—VOLUME OF PAPER DISCOUNTED AND BOUGHT. 00 [In thousands of dollars.] Total discounted and purchased Discounted paper. Purchased paper. paper. Month. Total. S l m e i G g c e o u a n v t r i e t e o d o r n n b b s - - . y B a a a c n n c c k e e p e s t r . - s' t A u p g r a r a i p l c a e u r n l" . d ot A h l e l r. Total. B a a a c n n c c k e e p e s t r . - s' 1921 1920 1919 3 3 January 180,676 112,754 25 6,574 60,457 1,599 1,599 182,275 157,057 173,923 February 149,510 103,240 177 584 4,776 40,733 504 504 150,014 143,446 110,534 March 163,604 103,756 49 561 6,003 53,235 471 471 164,075 159,917 147,394 April 150,877 98,301 440 607 5,436 46,093 1,117 1,117 151,994 160,845 155,002 May 144,518 86,416 1,388 6,039 50,675 621 621 145,139 177,269 168,316 June 125,806 67,378 410 5,944 52,074 868 868 126,674 165,730 167,507 July 121,232 62,216 659 5,661 52,696 886 886 122,118 181,617 182,987 August 123,642 65,189 881 4,450 53,122 779 779 124,421 209,481 183,932 September 132,044 67,764 1,196 4,741 58,343 5,344 5,344 137,388 209,774 216,739 October 128,908 61,594 1,647 6,836 58,831 4,108 4,108 133,016 229,844 215,537 November 109,015 53,904 1,478 7.384 46,249 2,225 2,225 111,240 241,007 178,399 December 117,423 54,288 1,534 7,210 54,391 3,606 3,606 121,029 235,536 157,168 Total, 1921. 1,647,255 936,800 691 11,811 71,054 22,128 22,128 1,669,383 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 8,234 227,885 51,661 51,661 2,057,438 i to o > Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT ]STO. 6—ATLANTA. 587 SCHEDULE 4.—EARNINGS AND EXPENSES. I 1921 1920 1919 Discounted bills $6,624,052 $6,688,342 $3,735,033 Purchased bills 154,440 337,991 367,338 United States securities 533,022 320,451 228,958 Transfers—net earnings 8,356 Deficient reserve penalties. 90,825 102,846 68,313 Miscellaneous 4,313 26,801 8,003 Total earnings. 7,406,652 7,476,431 4,416,001 Salaries- CURRENT EXPENSES. Bank officers 163,432 156,996 116,952 Clerical staff 530,325 433,196 289,855 Special officers and watchmen 22,653 15,631 10,037 All other 40,751 24,502 12,934 Governors' conferences 819 504 575 Federal Reserve Agents' conferences 442 175 133 Federal Advisory Council 1,259 1,092 470 Directors' meetings 25,708 17,427 10,123 Traveling expensesi 26,251 15,495 9,113 Assessments for Federal Reserve Board expenses 30,242 27,882 22,391 Legal fees 7,538 8,068 4,495 Insurance (life, fidelity, casualty, workmen's compensation, and general liability) 28,170 16,320 Banking house: Taxes and fire insurance 9.032 10,774 8,268 Light, heat, and power. 8,536 6,095 3,889 Repairs and alterations. 2,609 9,340 2,619 Allother 488 458 Rent, including light, heat, and power, and minor alterations 25,999 19,433 14,018 Fire insurance—furniture and equipment 2 13 Printing and stationery (including office and other supplies) 85,189 80,240 46,294 Telephone 4,987 3,589 2,988 Telegraph 57,223 50,746 24,326 C Se u c r u re ri n t c y y s a h n ip d m c e o n in ts shipments 5 4 8 , , 1 8 9 5 9 7 \ 56,087 31,982 Postage and expressage (other than on money and security shipments) 64,606 59,007 58,737 Furniture and equipment 33,399 76,057 46,844 Federal Reserve currency: Original cost, including shipping charges 203,504 126,009 148,735 Cost of redemption, including shipping charges 66,972 72,808 11,536 Taxes on Federal Reserve Bank note circulation 51,963 63,958 41,561 All other expenses 25,445 34,010 44,003 Total current expenses.. 1,580,585 1,385,441 972,217 Current net earnings 5,826,067 6,090,990 1,443,784 PROFIT AND LOSS ACCOUNT. Earnings 7,406,652 7,476,431 4,416,001 Current expenses. 1,580,585 1,385,441 972,217 Current net earnings.. 5,826,067 6,090,990 3,443,784 Additions to current net earnings: Amounts deducted from Reserve for depreciation on United States bonds 8,379 13,096 Assessment account expenses Federal Reserve Board, previously charged to profit and loss 20,302 All other 622 17 3,584 Total additions 9,001 20,319 16,680 Deductions from current net earnings: Depreciation allowances on bank premises 47,088 87,267 51,478 Reserve for possible losses * 250,000 Reserve for depreciation on United States bonds (,506 Assessment account expenses Federal Reserve Board. 20,302 All other 41,761 4,212 6,287 Total deductions 338,849 100,985 78,067 Net deductions from current net earnings 329,848 80,666 61,387 Net earnings available for dividends, surplus, and franchise tax., 5,496,219 6,010,324 3,382,397 Dividends paid 245,862 225,571 197,397 Transferred to surplus account 770,106 3,648,465 3,185,000 4,480,251 2,136,288 Franchise tax paid United States Government 1 Other than those connected with governors' and agents' conferences and meetings of directors and of the advisory council. 2 Credit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

588 REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE 5.—CURRENCY KECEIPTS FROM AND PAYMENTS TO MEMBER AND NON- MEMBER BANKS. [In thousands of dollars.] Receipts. Payments. Total receipts. Total payments. From To Month. From non- To nonmember mem- member mem- 1921 1920 1919 1921 1920 1919 banks. ber banks. ber banks. banks. January 34,424 802 16,230 9,966 35,226 36,057 22,046 26,196 16,183 6,478 February 25,676 928 17,127 342 26,604 23,050 12,267 17,469 20,201 7,802 March 31,386 1,137 14,737 2,568 32,523 28,071 16,274 17,305 19,300 9,580 April 29,801 810 19,087 11,066 30,611 28,943 17,523 30,153 24,901 8,842- May 25,857 714 20,341 3,543 26,571 27,604 20,082 23,884 19,439 10,757 June 27,750 651 15,752 618 28,401 27,214 16,758 16,370 18,517 9,985 July 24,848 1,294 17,385 458 26,142 27,547 20,411 17,843 21,780 9,292 August 25,176 661 15,180 509 25,837 23,736 17,350 15,689 19,398 13,628 September 21,182 1,491 26,092 6,330 22,673 23,351 13,441 32,422 24,773 23,765 October 24,312 3,195 17,929 990 27,507 27,677 16,936 18,919 53,031 32,815 November 25,978 929 16,113 844 26,907 30,726 17,624 16,957 19,501 20,082 December..... 30,721 1,012 30,023 1,334 31,733 31,509 28,653 31,357 31,952 22,427 Total, 1921.. 327,111 13,624 225,996 38,568 340,735 264,564 1920.. 321,312 14,173 247,886 41,090 335,485 288,976 1919.. 216,484 2,881 175,238 215 2]L9,365" 175,453 SCHEDULE 6.—OPERATIONS OF FEDERAL RESERVE CLEARING SYSTEM. [Figures include cash items only.] [Numbers in thousands; amounts in thousands of dollars.] Items drawn on banks in own district. Items drawn on Items forwarded Located in Federal Located outside Treasurer of to other Federal Period. an R d e b s r e a rv n e c h B c a i n ti k es. B F a e n d k er c a a i n l t i d R e s e b . s r e a r n v c e h United States. Re th se e r i v r e b B ra a n n c k h s e s a . nd N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. Jan. 1-15 135 90,421 418 55,379 44 6,852 80 26,766 Jan. 16-Feb. 15 254 161,435 838 100,294 93 17,161 167 54,944 Feb. 16-Mar. 15 301 157,362 862 98,303 82 14,098 176 54,455 Mar. 16-Apr. 15 438 182,945 956 106,862 109 18,741 158 47,474 Apr. 16-Mavl5 512 171,739 850 91,309 118 15,216 133 43,980 May 16-June 15 562 170,562 950 93,753 99 15,925 152 40,260 June 16-July 15 514 157,589 886 86,709 96 17,607 124 36,924 July 16-Aug. 15 509 151,735 842 80,499 104 17,340 109 35,059 Aug. 16-Sept. 15 574 155,090 840 91,747 92 19,598 104 37,961 Sept. 16-Oct. 15 507 189,654 939 110,364 102 20,720 106 43,134 Oct. 16-Nov. 15 535 188,482 966 110,912 118 18,066 115 39,998 Nov. 16-Dec. 15 568 186,302 998 105,359 98 20,380 128 44,171 Dec. 16-Dec. 31 291 101,182 522 55,290 41 10,356 73 22,517 Total, 1921 5,700 2,064,498 10,867 1,186,780 1,196 212,060 1,625 527,643 1920 3 317 2,729,237 10,632 1,718,196 880 161,752 1,743 772,111 1919 2,386 2,032,941 7,972 1,502,572 1,486 396,820 1,054 926,446 Total number.1 Total amount.l Period. 1921 1920 1919 1921 1920 1919 Jan. 1—15 677 649 444 179,418 257,583 185,359 Jan. 16-Feb. 15... 1,352 1,392 970 333,834 465,723 400,762 Feb. 16-Mar. 15.. 1,421 1,475 917 324,218 468,542 346,422: Mar. 16-Apr. 15.. 1,661 1,569 1,017 356,022 503,511 340,032 Apr. 16-May 15.. 1,613 1,416 1,072 322,244 475,454 327,871 May 16-June 15.. 1,763 1,329 1,014 320,500 450,931 352,119 June 16-July 15.. 1,620 1,295 1,035 298,829 439,402 373,282 July 16-Aug. 15.. 1,564 1,307 1,057 284,633 401,837 373,210 Aug. 16-Sept. 15. 1,610 1,337 1,040 304,396 428,931 381,839 Sept. 16-Oct. 15.. 1,654 . 1,356 1,124 363,872 440,229 495,400 Oct. 16-Nov. 15.. 1,734 • 1,391 1,286 357,458 437,532 524,480 Nov. 16-Dec. 15.. 1,792 1,330 1,248 356,212 403,511 496,772 Dec. 16-Dec. 31.. 927 i 726 674 189,345 208,110 261,231 Total, 1921 19,388 ; 3,990,981 1920 16,572 5,381,296 1919 12,898 4,858,779 Digitized for FiR EAxSclEusRiv e of duplications on account of items handled by both parent bank and branch. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 7—CHICAGO. WM. A. HEATH, Chairman and Federal Reserve Agent. No better idea of the major operations of the Federal Reserve Bank of Chicago during 1921 can be obtained than from the charts presented on pages 600 and 601. A brief study of these charts reveals the gradual but steady decrease in rediscounts and borrowings. From the beginning of 1921, the peak of the year, when they were $475,562,799, they declined to $185,519,895 at its close. Federal Reserve notes in circulation declined from the high point of $545,394,785 at the beginning of 1921 to $402,463,225 at the close, and gold reserves increased from $284,491,280 at the lowest point to $439,601,522 at the close. All this graphically presented, as measured with the course of the preceding year, portrays more clearly than words the continued easing of strained banking credit, so much in evidence during 1920 and a part of 1921. FINANCIAL RESULTS OF OPERATIONS. The financial operations of this bank during 1921 resulted in marked changes in the distribution of assets and liabilities. At the close of 1920 only 33 per cent of the total assets consisted of reserves, while at the close of 1921 the percentage was 60, representing an increase of $144,000,000. Bills on hand in 1920 were 53 per cent of the total assets, while in 1921 they were only 25 per cent, a decrease of over $300,000,000, and an amount less than was on hand at the close of either 1918 or 1919. Federal Reserve notes in circulation have decreased $143,000,000, although the ratio to total liabilities changed only from 57 per cent to 53 per cent. DISCOUNT OPERATIONS IN 1921. The highest point for loans to member banks during 1921, as shown in the weekly statements of the Federal Reserve Bank of Chicago, was reached on January 7, when borrowings were $437,487,000. The decrease during the year was practically continuous, borrowings reaching a low point of $176,447,000 on December 14, a reduction of 60 per cent. On December 31, 1920, borrowings of all member banks from the Federal Reserve Bank amounted to $475,563,000, and on December 31, 1921, to $185,520,000, a reduction of 61 per cent. The expansion in 1920 was more than absorbed by liquidation during 1921. Each of the five States in the district participated in this liquidation, although it was heavier in some than in others. The decline in bills discounted for Illinois and Michigan member 589 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

590 REPORT OF THE FEDERAL RESERVE BOARD. banks reflects the liquidation in industrial credit in the cities of Chicago and Detroit. (The reduction of loans in Chicago banks, which had been called upon to make advances to country banks, also reflects liquidation in agricultural credits.) The gradual decline in loans to member banks in Iowa reflects the steady liquidation of agricultural credit. Loans secured- by United States Government obligations have been liquidated in about the same proportion as other loans, as will be seen from Schedule 2. The percentage of this type of loans to total loans on January 7 was 31.1 and on December 28 it was 30.8 per cent. It was lowest on November 9, 27.1 per cent, and highest on May 18, 36.1 per cent. Rediscount rates were reduced three times during the year—on May 7, from 7 to 6^ per cent; on July 30, from 6£ to 6 per cent; and on November 3, from 6 to 5 per cent. These reductions did not check the gradual decline of bills rediscounted, as member banks appreciated the importance of liquidating their borrowings to a level which would permit them to operate once more on a basis of seasonal requirements. The slight increase in borrowings characteristic of the last four months of other years and caused by demands for harvesting and the movement of crops was not apparent in 1921. This deviation may be explained in part by advances made by the War Finance Corporation to the banks in this district for agricultural purposes, amounting to more than $15,000,000. Applications for rediscounts were received during the year from 1,191 banks out of the total membership of 1,443. During the year it was not necessary for the Federal Reserve Bank of Chicago either to borrow from or lend to other Federal Reserve Banks. The decrease in the volume of bankers' acceptances rediscounted from $32,095,000 in 1920 to $1,446,000 in 1921 may be accounted for by development of the open market for these bills. The openmarket rate was lower than the rediscount rate, favoring sale rather than rediscount. The volume of trade acceptances rediscounted decreased substantially this year, showing the total of $9,147,000 in 1921, compared with $26,290,000 in 1920. Liquidation of member banks' bills payable during 1921 brought about a large reduction in the amount of securities held as collateral. United States securities aggregating $310,000,000 were received during the year as collateral to notes, and $383,000,000 were released, while in 1920 receipts aggregated $450,000,000 and releases $432,000,000. INVESTMENTS. Holdings of bankers7 acceptances decreased from $26,000,000 at the beginning of the year to $8,000,000 at the close. As seen from Schedule 2, the large shrinkage occurred during the first part of the year, and in the latter part slight increases appeared. Changes in the volume of transactions are seen from Schedule 3. Included in the purchases and holdings are bills bought with agreement by the seller to repurchase within 15 days. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT N0.-1—CHICAGO. 591 The decrease in holdings of United States securities from $44,000,- 000 at the beginning of the year to $27,000,000 at the close represents almost entirely the cancellation of United States certificates of indebtedness, which had been held to secure Federal Reserve Bank note circulation. Weekly changes in holdings are shown in Schedule 2. Purchases and sales of Liberty bonds have consistently grown in volume. Toward the end of the year the establishment of more active trading in certificates of indebtedness in the local market caused a reduction in the volume of transactions through this bank. Practically the only market for short-term United States Government obligations prior to this year has been in New York. As conditions in the money market became easier after the first half of the year, it seemed desirable that a better market for these securities should be developed in Chicago. This bank, therefore, adopted the policy of purchasing United States certificates and Treasury threeyear notes under repurchase agreement by the dealers in order that a stock of the various issues could be kept on hand so that sales could be made for immediate delivery in Chicago. There are now five dealers actively engaged in trading in certificates and notes who publish daily quotations. Prior to the establishment of the market here last July there were no dealers in Chicago who published firm bid and asked prices for certificates of indebtedness and Treasury notes. A large and increasing volume of business is being handled by these dealers, and since the market has been established two eastern houses have opened branches in Chicago to handle this class of business. As a result of this development of the market in short-term Government obligations, a call money market has been established in Chicago, whereby banks are enabled to loan money to dealers on short call secured by United States certificates of indebtedness, Treasury notes, and bankers' acceptances. DEPOSIT AND FEDERAL RESERVE NOTE LIABILITIES. The marked improvement in the reserve position of this bank is clearly shown in the chart on page 601. Cash reserves increased from $329,000,000 on January 7, to $458,000,000 on December 28. Deposits showed an increasing trend until March, after which time fluctuations were irregular, with no marked tendency. The peak shown by the weekly statements was reached on June 15, with $264,082,000; the low point reached on September 28 was $231,641,000; on December 28 the item stood at $239,739,000. Federal Reserve notes in circulation decreased almost continuously from $535,075,000 on January 7 to $409,355,000 on December 28, a decrease of 23.5 per cent. The rapid increase in the percentage of cash reserves to deposit and Federal Reserve note liabilities combined, caused by these changes, indicates the improved financial condition of this bank. A change was made in the method of computation on March 18, using total deposits instead of net deposits, as formerly. On the basis used since March 18, the reserve percentage was 41.6 on January 7 and 70.6 on December 28. This increase was fairly steady, although on April 1 a drop to 40.9 per cent occurred. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

592 REPORT OF THE FEDERAL RESERVE BOARD. GROWTH OF MEMBERSHIP. Twenty-four State bank members were added during 1921. Five State banks withdrew from the system, owing to consolidations or changes in status which prevented their continued membership. Eleven new national banks were added to the membership, while eight surrendered their stock. FIDUCIARY POWERS. Trust powers under section ll(k) of the Federal Reserve Act were approved during 1921 for four national banks in Illinois, four in Indiana, nine in Iowa, one in Michigan, and four in Wisconsin. Of these applications, two were for supplementary fiduciary powers. BANK EXAMINATIONS. Present banking conditions and examinations in connection with membership applications have increased substantially the number of bank examinations made by the Federal Reserve Bank of Chicago during 1921. The examining staff has been increased to meet these requirements. Examinations have been made independently and also in cooperation with other banking departments. Close cooperation with national, State, and clearing-house examination departments has characterized the year's work in the interest of constructive banking. BANK RELATIONS. The policy of sending representatives trained in Federal Reserve practice to call upon the member banks was continued during 1921. A total of 2,679 calls were made, and every member bank in the district wxas visited at some time during the year. Particular attention has been given to the explanation of requirements for paper eligible for rediscount and to methods of keeping records of transactions in Federal Reserve accounts, so as to maintain the required legal reserve. In order to place the statements of reserve accounts in the hands of member banks at the earliest possible moment, these statements have been sent at the close of each day's business during 1921. The trend of each member bank's business at the Federal Reserve Bank has been followed for the purpose of assisting them in their use of the facilities afforded by this bank. Nonmember banks have been visited, and by special request representatives of this bank have explained the requirements and uses of membership to meetings of stockholders and directors. The field work has also included cooperation in the distribution of United States certificates of indebtedness and Treasury notes, and a broadening of the bankers' acceptance market. PART PLAYED IN GOVERNMENT FINANCING IN 1921. During the year 1921, the Seventh Federal Reserve District continued its active part in Government financing, through purchase by the banks of $138,847,000 United States loan certificates of indebtedness, 11| per cent of the total amount purchased by banks of the entire Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 1—CHICAGO. 593 country; and $194,945,000 United States tax certificates of indebtedness, 11| per cent of the total amount of such certificates sold in the entire country. Practically all of these certificates and $63,860,900 United States three-year notes were distributed among investors in this district. All of the certificates of indebtedness have matured or have been retired except $64,179,000 loan and $135,869,500 tax anticipation certificates. The banks have been the agencies for secondary distribution to the public, and several investment houses have also assisted in the development of a broad market by opening special departments for active trading in United States notes and certificates of indebtedness. During the year the proper use of tax anticipation certificates and the investment possibilities of United States notes have been personally discussed with practically every member bank in this district by a representative of this bank. Transactions of exchange for other denominations of United States securities increased materially, owing largely to appreciation in the market value of these securities. In its fiscal agency function this bank acts as custodian of securities pledged as collateral for credit taken in war loan deposit account. Deposits of securities are also accepted as security for balance payment due on Government oil land leases, as well as deposits of securities for account of the Alien Property Custodian. As fiscal agent of the War Finance Corporation, advances were made to 426 banks, amounting to $15,517,582. Treasury savings securities are put out on consignment accounts, the collateral pledged as security for such consignment being held by this bank. The exchange of temporary bonds for permanent bonds was practically completed during 1921. Conversion of bonds to those bearing a higher rate, of interest and conversion of Victory notes of one rate to another made up a considerable part of the operations of the bond department. A decrease is shown in the number of coupons redeemed, which may be owing to the gradual decrease in the number of small denominations remaining in circulation, as well as to the increase in registered bonds. GOVERNMENT SAVINGS SECURITIES. The Government savings organization of the Seventh Federal Reserve District operated during the year 1921 on practically the same basis as in previous years, having in view (1) the sale of Government savings securities, (2) developing permanent habits of regular savings and investments in these securities, (3) the development and protection of a secondary market for Liberty bonds and Victory notes. This work was carried on through industries, schools, clubs, fraternal organizations, and the press. As heretofore, the postal system has been the chief agency for the sale of these securities. The general conditions throughout the country during 1921 and the relatively low interset rate caused a decrease in sales. In accordance with the policy adopted by the Treasury Department, the savings organization in this district was materially reduced on July 1, 1921. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

594 REPORT OF THE FEDERAL RESERVE BOARD. NEW ACCOUNTS. Since March 25, Pittman certificates, which were on deposit with the Treasurer of the United States to secure Federal Reserve Bank note circulation, have been separated from other investments in the weekly press statements. On May 11 a new account was introduced—reserve for Government franchise tax—-representing accrual on the statement dates of surplus earnings payable to the Government as a franchise tax at the close of the year. GOLD SETTLEMENT FUND. Services rendered in settling balances between Federal Reserve districts are reflected in the volume of daily settlements through the gold settlement fund. Debits in settlements amounted to $8,866,614,000 and credits were $403,384,000 less. Gains were shown in all of the four-week periods except that ending on December 1, when a small loss was shown. When transfers amounting in debits to $33,700,000 and credits to $235,000,000 are taken into account, losses are shown to the gold settlement fund for the fourweek periods ending March 24, June 16, October 6, and December 29. Deposits and withdrawals, together with these settlements and transfers, increased the gold settlement fund from $36,048,000 at the beginning of the year to $79,130,000 at the close. POSITION OF MEMBER BANKS. Loans and discounts, including bills rediscounted with the Federal Reserve Bank, of reporting member banks in leading cities of this district decreased almost continuously during the year, while investments were practically constant, although at times the results of Government financing caused the aggregate to fluctuate. Demand deposits fluctuated considerably during the year without indicating any marked trend. Practically no change is shown in time deposits during the year. Cash in vaults and balances with the Federal Reserve Bank show fluctuation at times, but were fairly steady during the year. Bills rediscounted and bills payable with the Federal Reserve Bank both show large reductions during the year, as noted elsewhere in the report. In the analysis of the reserve accounts of member banks, it is found that throughout the year the aggregate of reserve balances maintained by member banks with this bank has been in excess of the legal requirements. The excess ranged from a high point of 3.90 per cent for January to a low point of 2.25 per cent for March. CASH AND CURRENCY OPERATIONS. The operations of the cash department have been increased over last year by functions of the subtreasury taken over in November, 1920. Prior to that time only a very small amount of coin was handled by this bank. During 1921 there was received for deposit $15,027,000 in coin, while shipments to banks in this district and to Washington amounted to $12,529,000. Accumulated in the vaults is circulated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 7 CHICAGO. 595 coin amounting to $3,832,000. This reflects a very marked decrease during the last year in the demand for subsidiary and minor coins and contrasts with the three years prior to 1921, when the mints, operating 24 hours a day, had difficulty in supplying the demand, and during which time practically no circulated coin accumulated in the subtreasury in Chicago. The total amount of currency received was $1,105,761,000, as compared with $1,088,281,000 in 1920. New currency amounting to $377,699,000 was paid out. Total payments in 1921 amounted to $959,969,000, compared with $1,121,098,000 in 1920. The extent to which member banks are availing themselves of the opportunity of shipping currency to and from the Federal Reserve Bank, without expense to them, is indicated by 67,665 shipments made during 1921, compared with 50,327 in the previous year. CLEARINGS AND COLLECTIONS. In the check-clearing operations of this bank for the year 1921 the total number of items handled shows an increase of 14.1 per cent over the preceding year. The number of items on Chicago and Detroit banks increased 15.1 per cent; checks on banks in the Seventh Federal Reserve District outside of Chicago and Detroit, 12.7 per cent; checks on banks in other Federal Reserve districts, 1.2 per cent; and Government checks, 41 per cent. The larger ratio of increase shown last year over the preceding year was due to the fact that during the first three months of 1920 and the last two months immediately preceding approximately 1,000 banks located in this Federal Reserve district were added to the par list, resulting in a heavy increase in the number of items received. The total number of * items handled during 1921 was almost 69,000,000, amounting to nearly $14,000,000,000; 19.1 per cent were drawn on Chicago and Detroit banks, 68.7 per cent on banks in this district outside of Chicago and Detroit, 5.1 per cent on banks in other districts, and 7.1 per cent on the United States Treasurer. Detailed statistics appear in Schedule 6. It is seen that while the number of items increased over preceding years, the amount represented was less than the amount in 1920. This indicates a decrease in the size of the average check, owing, in a measure, to the decrease in amounts of individual money transactions that has occurred. The decrease was practically steady from January, 1920, when the average check (drawn on banks) handled was $318.39, to December, 1921, when the average was $190.59. The average check (drawn on banks) handled for the year 1919 was $392.84 and for the year 1920, $320.14, while for 1921 'it was $207.46. The largest volume of items handled in a single day since the establishment of the system was on October 13, 1921, when a total of 397,671 items, amounting to $71,789,000, was handled. Operations related to the collection of noncash items are shown in the accompanying table, indicating the services to member banks in the collection of notes and drafts, both those discounted at Federal Reserve Banks and those sent by member banks for collection. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

596 EEPOKX OF THE FEDERAL RESERVE BOARD. NUMBER OF COLLECTION ITEMS HANDLED—1921. Drawn on— Total. Seventh Federal Re- Received from— served district. Other districts. Commer- Bonds and Commer- Bonds and cial items. coupons. cial items. coupons. All items. Discount department 5,535 4,815 10,350 Member banks, district 7 42,857 25,700 49.291 15,038 132,886 Member banks, other districts 19,226 6,879 71 10 26,186 Other Federal Reserve Banks 123,563 118,064 84 764 242,475 Total 191,181 150,643 54,261 15,812 411,897 Amounts represented by these items aggregated $480,382,922. There were also protested notes, drafts, and checks to the number of 5,871. DETROIT BRANCH. The year 1921 has been one of gradual and orderly liquidation by member banks in the territory covered by the Detroit branch. The high mark for member banks' rediscounts was reached early in April, $80,000,000, from which point there has been a decrease of 58 per cent on December 31, 1921. During the closing weeks of the year the effects of seasonal borrowings were reflected in increased discount operations. Transit operations for the year show an increase of 33 per cent in the number of items handled, while the aggregate amount shows a decrease of 21 per cent from the previous year. These figures indicate the degree to which member banks have availed themselves of the services of the Federal Reserve clearing system. The increase in volume against a pronounced decrease in amount can be partially accounted for by the gradual downward trend in prices applicable to practically all commodities which characterized the year 1921. The use by member banks of the collection privilege has increased, but here, also, the amount in dollars is not commensurate with the number of items handled. The number of noncash items handled in 1921 shows an increase of 101 per cent, with an increase of 16 per cent in dollars over the previous year. Transfer activities show an increase in dollars of 15 per cent in transfers bought and a decrease of 3 per cent in those sold. Fiscal agency operations present a decided decrease from the previous year, as is noted in the following table: Decrease. In In number. amount. Per cent. Per cent. Coupons redeemed. 25 11 War savings stamps.... 39 38 Certificates of indebtedness 60 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 7—CHICAGO. 597 Currency operations for the year show 11 per cent less receipts and a decrease of 38 per cent in payments from the previous year. Country member banks appreciative of this privilege have increased the demand in number of shipments 37 per cent, while a decrease of 13 per cent in amount is noticeable. A representative of the Detroit branch visited every member bank in the district during the year. An effort has been made at such times to establish a closer relationship between the member banks and the branch, and to enlist the interest of member banks in availing themselves of such forms of service as are applicable to their needs. Results of this policy are increasingly apparent. SCHEDULE 1.—COMPARATIVE STATEMENT OP CONDITION. [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, 1921. 1920. 1919. KESOtTRCES. Gold and gold certificates 22,025 29,016 24,181 Gold settlement fund—Federal Reserve Board. 79,130 36,048 76,479 Gold with foreign agencies 393 15,627 Total gold held by bank 101,155 65,457 116,287 Gold with Federal Reserve Agent., 312,163 198,162 243,604 Gold redemption fund 26,284 33,461 19,533 Total gold reserves 439,602 297,080 379,424 Legal tender notes, silver, etc 15,870 14,440 1,921 Totalreserves 455,472 311,520 381,345 Bills discounted: Secured by United States Government obligations.. 59,832 140,429 150,819 All other 125,688 335,134 136,090 Bills bought in open market 25,741 92,650 Total bills on hand 194,009 501,304 379,559 United States bonds and notes 9,605 4,490 4,477 United States certificates of indebtedness: One-year certificates (Pittman Act).... 12,667 39,612 39,612 All other 4,372 176 Total earning assets.. 220,653 545,406 423,824 Bank premises 7,010 2,351 2,116 5 per cent redemption fund against Federal Reserve bank notes. 1,665 1,778 1,888 Uncollected items 77,273 88,997 128,501 All other resources 1,521 936 Total resources. 763,594 951,041 938,610 LIABILITIES. Capital paid in. 14,307 13,913 12,347 Surplus 29,025 28,980 14,292 Deposits: Government 9,849 12,532 350 Member bank—reserve account. 237,012 249,771 257,979 All other 2,353 1,867 9,975 Total deposits. 249,214 264,170 268,304 Federal Reserve notes in actual circulation 402,463 545,395 500,139 Federal Reserve bank notes in circulation—net liability., 7,386 38,856 40,950 Deferred availability items 57,201 55,911 100,826 All other liabilities 3,998 3,816 1,752 Total liabilities. 763,594 i 951,041 938,610 Ratio of total reserves to deposit and Federal Reserve note liabilities combined 140.1 1 Calculated on basis of net deposits and Federal Reserve notes in circulation. 85227—22 39 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES DURING 1921. [Amounts in thousands of dollars.] 00 Bills discounted for member Reserve banks in this district.i Purchased bills percent ages. 2 Federal Total United Total Reserve Date. earning Secured Sold to Pur- States cash Total notes assets by U. S. Total other chased securi- re- deposits. in Ad- (2+5+8), Total. Govern- Per cent held Federal in ties. serves. circula- Actual. justed, s ment (3-2). (7-6). Reserve open tion. obliga- Banks. market tions. (5+6). Jan. 505,942 437,487 135,868 31.1 24,353 24.353 44,102 328, 510 253,958 535, 075 43.6 487,629 416,842 133,550 32.0 21,654 21,654 49,133 334,926 254,683 517, 474 45.1 468,130 410,502 138,530 33.7 13,470 13,470 44,158 345,450 250, 736 512.612 47.0 444,943 389,666 138,589 35.6 11,083 11,083 44,194 367,587 254,121 506, 053 50. 0 Feb. 4 442266,338822 370, 235 126,280 31.1 12.020 12,020 44,127 372,211 248,270 501, 877 51. 5 11 419,009 362,756 126,908 35.0 12,147 12,147 44", 106 388, 399 25S, 811 49S, 251 53. 0 18 ! 423,124 368,264 131,353 35.7 10,508 10,508 44,352 376,458 253,912 496,143 51.9 25 i 442,202 386,602 128,523 33.2 11,431 11,431 44,169 371,892 260,189 497, 763 50. 3 Mar. 4 424,140 369,451 128,470 34.8 10,535 1,000 11,535 44,154 374,989 261,795 495, 914 51.7 51.5 11. 432,308 378,713 128,921 34.0 9,490 1,000 10,490 44,105 368,979 2C>3,874 489, 484 50.7 50. 5 18.. 434.788 379,497 127,680 33.6 10,309 1,000 11, 309 44,982 349,013 248,285 485, 349 47.6 47.4 25.. 469,636 415,240 129,745 31.2 10,294 1,000 11,294 44,102 315, 899 253, 89S 480, 345 43.0 42.9 Apr. 1.. 482,669 427,441 128,391 30.0 12,049 1,000 13,049 43,179 296,458 247,781 476, 592 40.9 40.8 8.. 450,410 397,992 127,644 32.1 9,298 50 9,348 43,120 330,175 245,489 478,326 45.6 45. 6 15.. 422,036 369,439 123,798 33.5 9,950 9,950 42,647 351, 512 246,851 473, 559 48.8 22.. 425,638 |373,937 126,814 33.9 8,991 8,991 42.710 347,657 i249,253 473, 814 48.1 27.. 414,594 |365,107 120,356 33.0 8,037 8,037 41,450 349,974 i239,266 470, 823 49.3 May. 4.. 411,889 i 363,384 120.923 33.3 7,373 7,373 41,132 359,328 245,107 469,877 50.3 11.. 377,031 j333,355 117,775 35.3 2,977 2,977 40,699 387, 277 245,225 465, 267 54.5 18.. 361,696 !312,210 112,594 36.1 2,686 2,686 46,800 398,836 248,387 458,934 56.4 25.. 356,550 !311,807 112,004 35.9 3,996 3,996 40,747 398,605 243,054 456,793 57.0 June. 1.. 355,450 S310,217 110,324 35.6 4,557 4,557 40.676 398,473 245,695 459, 808 56.5 8.. 356.789 !311,901 109,303 35.0 4,219 4,219 40,669 386, 784 239,535 454,846 55.7 15.. 359,020 j296.579 104.924 35.4 4,924 4,924 57,517 391, 773 264,082 448,997 54.9 22.. 359,888 315.580 107,380 34.0 3,590 3,590 40, 718 366,829 233,525 444,851 54.1 29. 363,722 | 319, 822 107,019 33.5 3,223 3,223 40.677 364,481 234,507 443, 802 53.7 July. 6. 367,864 !324,901 106,366 32.7 2,306 2,306 40,657 374, 281 238, 390 454,379 54.0 13. 340,441 !297, 812 100,414 33.7 1,918 1,918 40.711 392, 549 239,784 444,363 57.4 20. 330,559 I 287,078 96,591 33.6 2,842 2,842 40,639 400,360 243,792 438,846 58.6 27. 322,581 j279,612 90,469 32.4 3, 280 3,280 39,689 401, 260 240,326 433.613 59.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Aug. 3 ! 284,459 241,937 83,986 34.7 2,713 !.. 2,713 39, 809 445,581 248,523 435,339 : 65.2 10 263,897 219,390 74,089 33.8 3,656 ;.. 3,656 40, 851 467,988 247,008 433,830 68.7 17 260,224 218,004 71,198 32.7 2,985 .. 2,985 39,235 470,114 247.192 433,247 ; 69.1 24 : 262,024 218,390 72,084 33.0 3,313 L 3,313 40,321 461,986 244,094 430,920 68.4 31 251,297 210,268 70,403 33.5 3,054 L. 3,054 37,975 473,194 244,507 431,431 , 70.0 Sept, 7 252,814 213,234 67,653 31.7 2,656 I.. 2,656 36,924 478,012 246,252 438,117 69.8 14 231,717 195,466 63,392 32.4 1,559 . 1,559 34,692 496, 550 253,556 429,888 . 72.7 21 265,896 226,209 69,047 30.5 3,387 :. 3,387 36,300 444, 770 243,240 427,286 ! 66. 3 28 i 260,077 226,112 69,949 30.9 1,494 . 1,494 32,471 441, 317 231,641 423,703 I 67.3 Oct. 5 i 249,951 215,042 69, 795 32.5 3,907 \. 3,907 31,002 462,794 244,062 423,145 ! 69.4 11 245,214 211,023 64, 748 30.7 3,709 L 3,709 30, 482 468,648 I245,566 423,688 70.0 19 | 239,074 204,388 65,918 32.3 3,706 i. 3,706 30,980 462,265 243, 869 416,129 70.0 26 i 226,654 193,542 55,268 28.6 3,130 L 3,130 29,982 464, 914 234,611 411,710 71.9 Nov. 2 ! 230,826 194,640 60,081 30.9 3,561 L 3,561 32,625 467,939 243.193 410,396 71.6 9 218,689 182,126 49,278 27.1 4,161 !. 4,161 32,402 480,234 239,563 410,311 i 73.9 16 j 222,245 189,133 52,510 27.8 3,350 L 3,350 29,762 475,554 247,907 405,658 ! 72.8 23 1 212,848 183,616 52,353 28.5 1,891 |. 1,891 27,341 473,796 236, 974 405,720 ! 73.7 30 210,091 179,535 52,194 29.1 5,195 !. 5,195 25,361 471,910 234,812 401,583 74.2 Dec. 7 209,825 182,009 54,759 30.1 4,536 L 4,536 23,280 477,619 238,868 401,812 ! 74.5 14 i 201,182 176,447 50,646 28.7 3,975 |. 3,975 20,760 492,388 240,217 402,140 i 76.7 21 1 224,695 196,618 55,636 28.3 4,289 I. 4,289 23,788 469,022 246,368 409,983 71.5 28 ' I 231,888 196,053 60,344 30.8 5,296 !. 5,296 30, 539 458,498 239,739 ! 409,355 70.6 1 No bills were discounted for or with other Federal Reserve Banks, 2 Prior to Mar. 18, net deposits, as given below, were used in calculating reserve percentages: Jan. 7 $218,936,000 Feb. 4 $220,635,000 Mar. 4 $229, 595,000 14 225,194,000 11 234,073,000 11 238, 516,000 21 222,498,000 18 228,679, 000 28 229,150,000 | 25 241,627,000 I 3 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 blank in this column indicates that no accommodation was extended to or received from other Federal Reserve Banks. t > Q O O CD D Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

600 REPORT1 OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK OF CHICAGO MOVEMENT OF EARNING ASSETS DURING 1920 AND 1921 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 2OO UNITED STATES SECURITIES ,/ 100 1 100 777, Ufa Y/AY/s AT 77?V7? K 77? trr>~, o 200 PURCHASED BILLS 200 i i i i I i 100 ^7732rc•MM •BB •MB•331••a •••i BBS 0 700 700 DISCOUNTED BILLS <SEE NOTE BELOW , 400 400 300 200 200 100 7O0 TOTAL EARNING ASSETS 600 500 500 400 400 300 300 200 100 100 l 5 * S* 1321 A - Paper secured by U. S. OOTernmant obligations discounted for banks in district. B - Total paper discounted,for banks in distriot. C - Total discounted paper held* Space between lines B and'C represents - where above line 2 - paper discounted for, Digitized for FRASERa nd - where below line B - paper rediscounted with, other Federal Reserve Banlce. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTEICT NO. CHICAGO. 601 FEDERAL RESERVE BANK OF CHICAGO DEPOSITS, F.R.NOTE CIRCULATION, CASH RESERVES AND RESERVE RATIOS.192O-1921 PERCENT PER CENT ACTUAL RESERVE RATIOS - - - - - ADJUSTED T A ! 1 /^ / Z j if* i i j i MILLIONS OF DOLLARS MILLIONS OF DOLLARS 400 400 DEPOSITS 300 300 200 I 1r?77 200 1 I i I i pi1 11i 11§ I I I 100 i i 1i i I 100 i WAI i i i I I 1 I 1i O 0 700 700 F.R NOTE CIRCULATION 600 600 500 V/V 1 500 pi 400 i i i IiP I i 400 i i p i nm 300 i1i 1i i 1300 I 1i i i 1i i i i I 1I i 1I 2OO 1 i i i 200 1I i pi i i 1 i pi 1 pI i i i I 100 i i 100 i I i i i i i i i i i i I i 11i i O 0 9OO 900 DEPOSIT AND F.R.NOTE LIABILITIES; L, AND TOTAL RESERVES,'C" eoo 800 700 700 600 600 500 500 400 400 300 300 200 200 100 100 0 0 1920 1921 Adjusted percentages are calculated after reducing or increasing reserves held by the amount of accommodation received from or extended to other Federal Reserve banks. The deposit curve is based on "net deposits'* up to Uaroh 11, 1921, and on "total deposits" thereafter. 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.] to Discounted paper. Purchased paper. Total discoun p t a e p d e a r. nd purchased Month. Total. j | | I S o e G b c l m o i u g v r e a e e n t d n i t o i b - n y 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 . - l t A i u v p r g e a a r - p l i s c e t u o a r. n l c - d k All other. Total. B a a a c n n c c k e e p e s t r . - s' ! ex D c o h l a l n a g r e, a a T c n r c c a e e d p s e t . - I 1920 1919 o w H January 423,044 257,587 506 1,404 13,819 149,728 17,656 ! 16,894 i 762 440,700 433,063 324,382 o February 386,882 219,978 842 13,498 152,564 16,200 j 14,863 ! ,337 403,082 508,423 276,622 March 519,190 259,850 323 1,053 24,657 233,307 15,023 ! 14,228 i 795 534,213 669,482 355,519 April 374,274 225,461 192 1,756 15,283 131,582 11,423 ! 10,888 535 385,697 553,261 365,358 H May 379,304 221,645 60 889 15,830 140,880 10,998 I 10,248 ! 750 390,302 538,131 434,877 June 418,783 213,481 167 933 16,686 187,516 8,332 8,297 35 427,115 596,346 420,770 July 323,184 182,464 364 11,403 128,953 7,856 i 7,856 I 331,040 523,910 394,089 August 293,919 167,534 20 323 13,242 112,800 9,815 i 9,715 ! 100 303,734 545,603 401,146 September 310,432 162,197 295 18,288 129,652 6,665 S 6,173 I 492 317,097 654,010 402,042 October 272,259 146,570 175 698 16,638 108,178 10,626 j 10,626 : 282,885 514,770 444,066 November 214,202 124,577 3 361 16,849 72,412 12,287 ! 12,267 i 20 226,489 531,999 481,884 ] )eeember 253,004 142,371 229 16,427 93,977 11,395 i 10,770 i 625 264,399 581,515 547,569 Total, 1921 4,168,477 2,323,715 1,446 9,147 192,620 I 1,641,549 138,276 I 132,825 ! 5,451 4,306,753 1 1 9 9 2 1 0 9 • i • 4 6 , ,3 5 0 5 5 6 , , 4 3 9 1 2 2 3 3 , , 8 9 1 5 6 5 , , 3 0 8 4 1 5 32,095 2 6 6 , , 5 2 8 9 1 0 2,4 5 3 9 0 4 , , 7 6 2 8 6 6 3 2 4 9 5 2 , , 0 0 2 1 1 2 ! 2 3 9 4 1 1 , , 9 3 5 1 1 4 3,707 6,650,513 4,848,324 w td fcd < td O td Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT XO. 1 CHICAGO. 603 SCHEDULE 4.—EARNINGS AND EXPENSES. 1921 1920 1919 EARNINGS. Discounted bills $18,829,302 $25,726,750 $8,915,827, Purchased bills 374,864 2,989,035 2,141,789 United States securities 858,205 995,377 736,241 Transfers—net earnings 162,555 374,000 143,495 Deficient reserve penalties. 123,250 174,470 44,569 Miscellaneous 33,994 30,157 Total earnings. 20,382,170 30,303,218 12,012,078 CURRENT EXPENSES. Salaries: Bank officers 332,652 224,041 163,583 Clerical staff 1,888,877 1,672,550 881,142 Special officers and watchmen 138,792 94,494 64,752 All other 156,492 123,324 80,785 G overnors' conferences 615 474 523 Federal Reserve Agents; conferences 244 559 84 Federal Advisory Council 1,099 1,046 816 Directors' meetings 11,731 9,591 6,754 Traveling expenses * 48,131 39,667 28,147 Assessments for Federal Reserve Board expenses 105,227 101,568 80,170 Insurance (life, fidelity, casualty, workmen's compensation, and general liability) - 68,987 45,610 16,513 Rent, including light, heat and power, and minor alterations 273,625 300,242 145,913 Fire insurance—furniture and equipment 7,141 4,535 253 Printing and stationery (including office and other supplies) 249,617 240,727 114,448 Telephone 31,872 19,283 9,793 Telegraph 71,621 63,875 24,216 C Se u c r u re r n it c y y s a h n ip d m c e o n in ts shipments 10 1 7 3, , 0 5 3 0 3 2 | 114,767 66,144 Postage and expressage (other than on money and security shipments) 145,446 125,770 105,116 Furniture and equipment 118,158 289,064 98,080 Federal Reserve currency: Original cost, including shipping charges 768,220 550,291 400,418 Cost of redemption, including shipping charges 106,811 102,672 62,558 Taxes on Federal Reserve Bank note circulation 98,655 174,252 133,970 All other expenses 107,710 154,838 64,146 Total current expenses.. 4,852,258 4,453,240 2,548,324 Current net earnings 15,529,912 25,849,978 9,463,754 PROFIT AND LOSS ACCOUNT. Earnings 20,382,170 30,303,218 12,012,078 Current expenses. 4,852,258 4,453,240 2,548,324 Current net earnings.. 15,529,912 25,849,978 9,463,754 Additions to current net earnings: Assessment account expenses Federal Reserve Board, previously charged to profit and loss 66,764 All other 4,826 2,543 Total additions. 4,826 69,307 Deductions from current net earnings: Depreciation allowances on bank premises 145,000 29,062 820,000 Reserve for possible losses 500,000 Assessment account expenses Federal Reserve Board. 66,764 All other 384,621 14,474 786 Total deductions 1,029,621 43,536 887,550 Net deductions from current net earnings 1,024,795 2 25,771 887,550 Net earnings available for dividends, surplus, and franchise tax.. 14,505,117 25,875,749 8,576,204 Dividends paid 853,785 792,769 700,807 Transferred to surplus account 1 2 1 , , 0 5 7 76 5 , , 0 3 0 2 9 3 1 10 4 , , 3 6 9 8 4 8 , , 4 5 8 0 0 0 7,875,397 Franchise tax paid United States Government 1 Other than those connected with governors' and agents' conferences and meetings of directors of the advisory council. 2 Net additions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

604 REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE 5.—CURRENCY RECEIPTS FROM AND PAYMENTS TO MEMBER AND NON- MEMBER BANKS. [In thousands of dollars.] Receipts. Payments. Total receipts. Total payments. From To Month. From non- To nonmember mem- member 1921 1920 1919 1921 1920 1919 banks. ber banks. ber ! banks. (banks. January 100,507| 1,954 52,977 497j 102,461 78,772 70,026 53,474 24,125 February 66,164! 1,379 62,5011 4701 67,543 46,843 29,799 62, 971 80,483 36,352 March 95,949! 1,740 77,703i 536! 97, 689 72,454 34, 680 78,239 84,662 42,705 April 84,677 1,681 80,907! 557 86,358 77,540 44,528 81,464 90,469 43,009 May 84,975! 1,338 77,224! 422 86,313 78,195 56,343 77,646 85,765 38,659 June 88,744; 1,324 76,998! 342 90,068 88,870 54,307 77,340 87,358 41,723 July 82,745 1,173 74,580; 297 83,918 91,847 64,181 74,877 89,494 49,329 August 77,029! 1,235 77,916! 264 78,264! 74,836 45,640 78,180 91,567 66,853 September 83,177| 1,160 77,739! 3401, 84,3371 83,192 51,400 78,079 94,936 49,094 October 84,770; 1,167 79,343 3661 85,937| 86,204 64,345 79, 709 89,562 68,545 November 84,634! 1,265 81,746 4421 85,899i 89,864 56,150 82,188 79,215 62,872 December 97,963 1,165 106,346j 547; 99,128 103,067 76,702 106,.""" 102,781 90,922 Total, 1921.. 1,031,334; 16,581 925,980| 5,080|l,047,915 931,060 ' 1920.. 953,048 18,6633661L, 035,082| 2,013; I 971,684| 1,037,095 1919.. 641,398: 6,703 609,106' 614,188 5,082! 648,101 SCHEDULE 6.—OPERATIONS OF FEDERAL RESERVE CLEARING SYSTEM. [Figures include cash items only.] [lumbers in thousands; amounts in thousands of dollars.] Items drawn on banks in own district. Items forwarded Period. L an o R d c a e b t s e r e d a r n v i e c n h B F c e a i d n ti e k e r s a . l B F L a e o n d k c e a r t a c a e i n l d t i d R e o s e b u . s r t e s a r i n d v c e e h I U te T n m r i e t s a e d s d u ra r S e w t r a n t o e o f s n . R t e t o h s e e o r i t r v h e e b r r B a F a n e n c d k h e s e r a s a . l nd N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. Jan. 1-15 508 369,261 1 817 177 213 174 20 200 151 18 2^5 Jan. 16-Feb 15 949 678 244 3 3D9 317 139 237 47 694 285 33 096 Feb. 16-Mar. 15 1,117 680,809 3, 580 372, 450 218 72,836 324 35,660 Mar. 16-Apr. 15 1,383 790,764 4,130 397, 516 486 69,932 347 41, 965 Apr. 16-Mav 15 961 649,147 3,618 329,772 523 62,982 276 32,139 May 16-June 15 1,039 698,588 4,041 352,624 394 69,694 287 32,448 June 16-Julv 15 1,096 730,583 3,878 352,283 486 75,347 278 34,428 July 16-Aug. 15 994 677,351 3,842 333,854 312 44,678 267 32,130 Aug. 16-Sept. 15 999 673,420 4,043 354,873 288 45,947 268 31,265 Sept. 16-Oct. 15 1,131 777,507 4,216 378,337 ! 500 78,444 283 35,258 Oct. 16-Nov. 15 1,090 724,017 4,161 360,257 1 561 56,128 295 34,959 Nov. 16-Dec. 15 1,208 709,361 4,335 356,809 ! 410 58,383 309 33,862 Dec. 16-Dec. 31 698 416,639 2,225 191,755 | 273 27,616 163 19,716 Total, 1921..... 13,173 8,575,691 47,238 4,274,882 | 4,862 729,881 3,533 415,171 ]920 11,442 11,802,759 41,932 5,765,273 3,447 471,349 3,490 636,337 1919 7,920 9 189 554 23,275 3,382,981 4,231 918,985 2,034 481,111 Total number. Total amount.1 Period. 1921 1920 1919 1921 1920 1919 Jan 1-15 2,650 2,117 1,117 584,919 642,809 523, Jan. 16-Feb 15 4,823 4,092 1 076,173 1,270,972 1.070.990 Feb. 16-Mar. 15 5,239 4,654 2,304 ,161,755 1,814,863 935,445 Mar 16-Apr 15 . . 6,346 5,427 3,125 ,300,177 1,835,560 1,137,440 Apr. 16-May 15 5,378 5,001 3,034 ,074,040 1,559,833 1,019,520 May 16-June 15 5,761 4,840 2,796 ,153,354 1,493,970 1,095,039 June 16- July 15 5,738 2,982 L, 192,641 1,663,709 1,146,594 Julv 16-Aug. 15 5,415 4*829 L, 088,013 1,495,629 1,194,535 A-Ug 16-Sept 15 5,598 5,102 ]L, 105,505 1,573,110 1,180,366 Sept 16-Oct. 15 6,130 3^586 L, 269,546 1,727,862 1,320,110 Oct. 16-Nov. 15 6,107 5^420 L,175,361 1,509,832 1,299,838 Nov 16-Dec 15 6,262 5,361 3,766 L, 158,415 1,336,366 1,284, Dec. 16-Dec 31 3,359 2,884 2,230 655,726 751,203 766,045 Total, 1921 68,806 13,995,625 1920 . .. 60^311 'i8*675,"7i8' 1919 "37,"460' i3,972,'631 » 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. 8—ST. LOUIS. WILLIAM MCC. MARTIN, Chairman and Federal Reserve Agent. The greatly reduced volume of business in the country during 1921, coupled with lower commodity prices and smaller credit needs, was directly reflected in the operations of the Federal Reserve Bank of St. Louis. Items representing routine activities show sharp declines as compared with the preceding year, excepting the reserve ratio, which on December 31, 1921, stood at 64.8 per cent, against 44.3 per cent at the close of 1920. Liquidation of discounted paper was almost continuous throughout the year, and was accompanied by a heavy return flow of Federal Reserve notes. Total earning assets of this bank on December 31 were only slightly more than half as large as on the same date in 1920. As a result of these movements net earnings of this bank in 1921 showed a substantial decrease as compared with the year before. FINANCIAL RESULTS OF OPERATION. Gross earnings of the Federal Reserve Bank of St. Louis for 1921 aggregated $5,166,315. Current expenses amounted to $1,961,250, leaving net earnings of $3,205,065, which were $2,050,596 less than those for 1920. Dividends, amounting to $270,253 were paid during the year, and $1,639,109 was paid to the Government as a franchise tax. The amount transferred to surplus was $1,042,564. The chief source of revenue during 1921 was bills discounted for member banks, $4,739,032 of the gross earnings being derived from these transactions. Acceptances purchased yielded $41,427 and United States securities $284,151. Schedule 4 shows in detail the earnings and expenses for 1921 as compared with previous'years. The total resources of the Federal Reserve Bank of St. Louis decreased from $263,102,000 on December 31, 1920, to $213,487;000 on December 31, 1921. Between these dates its deposits decreased from $70,237,000 to $69,264,000, and its earning assets decreased from $133,308,000 to $71,204,000. Federal Reserve notes in circulation fell from $135,785,000 to $95,246,000. These movements were accompanied by a heavy gain in reserves, this item standing at $88,876,000 on December 31, 1920 and at $106,641,000 on the last day of 1921. Comparative balance sheets are given in schedule 1. The movement of principal asset and liability items during the year is shown in schedule 2 and accompanying charts. RESERVE POSITION. During the year under review the reserve position of this bank was progressively strong, its reserve ratio working upward from the first business day and reaching its high point toward the middle 605 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

606 REPORT OF THE FEDERAL RESERVE BOARD. of December. It was not necessary to rediscount with any other Federal Reserve Bank, neither did any other reserve bank rediscount with this institution. On January 3, 1921, the reserve carried against net deposit and Federal Reserve note liabilities was 44.8 per cent, which, incidentally, was the low point of the year. The high level in January was 50.9 per cent, and during each succeeding month until and including May the trend was steadily upward 62.7 per cent being reached in the latter month. In June the high point was 55 per cent, and in July it fell to 54.7 per cent, this slight dip being caused by increased borrowings incident to crop financing. However, the August high point was 60.5 per cent, and in September the range was from 55.8 to 59 per cent. Each of the following months showed radical advances, which culminated in the year's high record of 69.5 per cent, reached on December 12. On December 31 the ratio stood at 64.8 per cent. The total cash reserves, deposit and Federal Reserve note liabilities and reserve percentages by weeks are shown in schedule 2 and accompanying chart. DISCOUNT OPERATIONS. The total amount of paper discounted for member banks during 1921 was $1,609,023,938.91. Of this amount $638,183,391.51 was single-name paper; $5,140,714.54, consisted of trade acceptances, or two-name paper, $7,973,689.53 consisted of bankers7 acceptances, and $957,726,143.33 consisted of member banks' 15-day collateral notes. Of the $638,183,391.51 of commercial paper discounted, $38,102,650.30 was secured by Government obligations, and of the $957,726,143.33 of member banks' collateral notes, $956,436,581.33 was secured by Government obligations. The total paper discounted for member banks during 1921 shows a decrease of $829,- 016,774.70 under the amount discounted in 1920. The paper entitled to classification as agricultural or live-stock paper discounted in 1919 amounted to $4,762,082.24; in 1920, $24,591,095.49; and in 1921 such paper amounted to $52,191,415.36. It will be noted that there was an increase in the discount of agricultural paper of over $27,600,000 in 1921 as compared to 1920. The figures given for these three years indicate an enormous growth in t'he amount of agricultural or live-stock paper rediscounted for the farming communities. The assistance given by this bank to the rural communities is even greater than indicated by the figures, because so much of the borrowings of country banks on their own promissory notes, which do not indicate whether the proceeds are to be used for agricultural purposes, in reality are for benefit of the farmer. The total number of bills handled during 1921 was 80,820, as follows: Rediscounts 67,881; membe? banks' collateral notes 11,017; and acceptances bought 1,922. There were 2,959 fewer bills handled than in 1920. Of the 588 member banks, 390 different member banks borrowed from this bank in 1921, which is an increase of 4 over the number accommodated in 1920. Schedule 3 shows the volume of the different classes of paper discounted by this bank and its branches. The total amount of discounts held each week is given in schedule 2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8 ST. LOUIS. 607 TRADE ACCEPTANCES. During 1921, this bank discounted a total of $5,140,714.54 of trade acceptances for member banks, which is a decrease of $8,330,436.47, as compared to 1920. The decrease is due in part to unfavorable conditions and in part to the fact that banks did not rediscount as much as during the previous year. BANKERS7 ACCEPTANCES. During the past year this bank purchased a total of $21,187,537.51 of bankers' acceptances, of which $1,000,059.27 were purchased from the Federal Reserve Bank of Chicago. This is a decrease of $14,832,079.95 from the amount purchased during 1920. The rates on these acceptances ranged from 4J to 6^ per cent. Schedule 3 shows the amount of bankers7 acceptances purchased each month. The following member banks were authorized by the Federal Reserve Board during 1921 to accept up to 100 per cent of their capital and surplus, drafts and bills of exchange growing out of transactions involving the importation or exportation of goods, as provided in section 13 of the Federal Reserve act: Peoples Savings Bank & Trust Co., Pine Bluff, Ark.; First National Bank, Itta Bena, Miss. The addition of these two makes ten member banks in this district which have been granted permission to accept up to 100 per cent. FEDERAL RESERVE NOTES. Federal Reserve notes aggregating $71,640,000 were received by the Federal Reserve agent from the Comptroller of the Currency during 1921. A total of $74,960,000 was issued and reissued by the agent to the Federal Reserve Bank of St. Louis against the pledge of gold and eligible paper, which was $31,510,000 less than the amount issued and reissued during 1920. The demand for Federal Reserve notes was heaviest in February and through July, August, September, and October. During the year the bank returned to the Federal Reserve agent $5,600,000 of fit Federal Reserve notes. The Treasurer of the United States during 1921 redeemed, out of the redemption fund maintained with him by the Federal Reserve agent, $110,648,440 of unfit notes of the Federal Reserve Bank of St. Louis, which were turned over to the Comptroller of the Currency for destruction. FederaJ Reserve notes outstanding on December 31, 1921, amounted to $114,102,945. To secure these notes there were $66,158,105 of gold and $63,240,311.84 of eligible paper pledged with the Federal Reserve agent. Of the $114,102,945 Federal Reserve notes outstanding, $17,775,195 were held by the Federal Reserve Bank and its branches and $1,081,550 were in transit to Washington for redemption, leaving $95,246,200 in actual circulation on December 31, 1921. This was $40,539,130 less than the amount in circulation at the close of 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

608 EEPOET OF THE FEDERAL, RESERVE BOARD. During 1921 the Federal Reserve Bank of St. Louis received for redemption or credit $61,726,100 of its own Federal Reserve notes from other Federal Reserve Banks, and returned to other Federal Reserve Banks for redemption or credit $79,627,865 of their notes. In other words, this bank returned $17,901,765 more notes of other banks than it received of its own. As was the case in 1920 the Federal Reserve Bank of Chicago returned to this bank more notes of the Federal Reserve Bank of St. Louis than did any other district. This bank also returned more notes of the Federal Reserve Bank of Chicago than of any other district. FEDERAL RESERVE BANK NOTES. Federal Reserve Bank notes issued during 1921 totaled $6,124,000. all of which amount represented replacement of unfit notes redeemed. Redemptions of unfit Federal Reserve Bank notes during the period under review were $11,655,000, representing a net reduction of $5,531,000 in the amount of notes outstanding. The amount of Federal Reserve Bank notes outstanding on December 31, 1921, was $4,077,600. They were secured by $6,569,000 United States special 2 per cent certificates of indebtedness, deposited with the Treasurer of the United States. Of the bank notes outstanding at the close of the }Tear, $154,171 were held by the Federal Reserve Bank of St. Louis and its branches, leaving $3,923,429 in actual circulation. This was $5,563,321 less than the amount in circulation at the end of 1920. SHIPMENTS OF CURRENCY AND COIN.' As stated in preceding annual report, the Federal Reserve Bank of St. Louis and its branches absorb costs incident to shipments of paper currency, subsidiary silver, and minor coin to member banks and of paper currency and all coin from member banks; also, the cost of incoming shipments of paper currency and coin from nonmember banks remitting regularly to the Federal Reserve Bank at par. In addition, at the request of a member bank, the Federal Reserve Bank also ships paper currency, subsidiary silver, and minor coin to any bank or trust company, either member or nonmember, in the district. It pays the charges when such shipment is made to another member bank, but not when made to a nonmember. Greatly increased operations have resulted, covering both receipts and shipments, the increased volume being particularly noticeable in shipments to nonmember banks at the request of members. This arrangement has proved of great value to member banks, in that it obviates rehandling shipments. During the year the Federal Reserve Bank of St. Louis and its branches paid out a total of $365,703,943.82 in currency and coin, of which $322,452,917.31 were paid to member banks and $43,251,026.51 to nonmember banks. Of the total of $468,160,862.27 currency and coin received, member banks' deposits amounted to $432,892,495.62 and those of nonmember banks totaled $35,268,366.65. CLEARINGS. During 1921 the Federal Reserve Bank of St. Louis and its branches handled 33,997,778 checks amounting to $5,605,464,501, indicating Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTBIOT NO. 8—ST. LOUIS. 609 an increase of 2,307,210 in the number of checks handled, but a, decrease of $2,039,135,641 in the amount, as compared with the respective totals of the preceding year. The average daily number of items handled during the year was 113,326. In point of number of checks handled, 1921 established a new high record. The sharp decrease under the preceding year in the total dollar amount represented by the checks cleared is attributable in large part to the radical downward readjustment in commodity prices, and consequent shrinkage in the average size of transactions covered by check payments. The number of member banks in the district which were availing themselves of the clearing facilities at the close of the year was 345, against 332 at the close of 1920. Nineteen nonmember banks were maintaining clearing accounts with the Federal Reserve Bank and branches, against 17 at the end of the preceding year. At the end of the year, this bank and its branches were collecting, at par, checks on 3,076 banks out of a total of 3,243 banks in the Eighth Federal Reserve District. The difference represented 167 nonmember banks located in Mississippi, which had not agreed to remit for checks at par. The privilege of routing items which are payable in other Federal Reserve districts direct to other Federal Reserve Banks and branches for the credit of this bank and for use of the forwarding bank has been granted to 35 banks in the district. In July, 1920, this bank put into operation a plan whereby cash letters, addressed to other Federal Reserve Banks and branches by direct sending member banks in St. Louis, could be deposited in the Federal Reserve Bank of St. Louis during certain hours on each business day. These cash letters are inclosed with similar items of the St. Louis Federal Reserve Bank and dispatched to the addressees. During the year under review there were dispatched through the St. Louis parent bank 329,235 letters amounting to $2,234,435,807.62. The expense of postage was borne by this bank, This service was extended to the local members of the Memphis branch during the year, and will be extended to the local member banks in Louisville and Little Rock shortly after January 1, 1922. COLLECTIONS. The machinery set up by the Federal Reserve Bank for serving its member banks in the matter of collections proved eminently successful during the year under review. The members availed themselves to a greater extent than in any preceding year of the facilities for collecting such items as notes, drafts, acceptances, coupons, etc. The total representing both items and amount show good gains over those of 1920. During 1921 this bank handled 130,952 collection items, amounting to $190,104,225.67, which (ximpares with 90,593 items, amounting to $180,848,903.41 in 1920. Of the collection items handled, 118,144 items, amounting to $177,- 526,828.71, were collected, leaving 12,808 items, representing $12,- 577,396.96, returned unpaid. The average item handled in 1921 was approximately $1,451, against an average of $1,996 in 1920 and about $2,538 in 1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

610 REPORT OF THE FEDERAL RESERVE BOARD. GOLD SETTLEMENT FUND. The gold settlement fund in Washington is used for the settlement of transactions between the several Federal Reserve Banks, and with each succeeding }rear its efficiency and usefulness becomes more apparent. The facility and quickness for making settlements through this medium, along with its other advantages, permit of an immediate reflection of the true reserve condition of each district. Through this fund are cleared not only the balances between Federal Reserve districts on check clearances, but transfers of funds for account of the United States Treasury and of member banks and their customers, rediscounts, and sales of acceptances between Federal Reserve Banks. Advices directing these operations are dispatched over the private wire system which connects the Federal Reserve Banks, their branches, and the Federal Reserve Board at Washington. The total amount of the 1921 gold settlement fund operations with this bank indicates a marked decrease as contrasted with 1920. The reduction in rediscount transactions and other items reflecting the trend of commercial affairs had direct bearing on the decline shown in gold settlement operations. The balance in this account on December 30,1920, was $21,852,704.38 and the balance on December 28, 1921, was $20,728,174.05. Total settlements were as follows: Receipts, $4,545,632,082.11 and disbursements, $4,546,756,612.44, indicating a net loss of $1,124,530.33. TRANSFERS OF FUNDS. To a relatively greater extent than during any preceding year member banks availed themselves of the service of the Federal Reserve Bank in transferring funds. It is possible through the facilities offered to make payments between points separated by great distance immediately, without cost to member banks and at par. The following table gives statistics covering outgoing and incoming wire transfers handled by the St. Louis Federal Reserve Bank and its branches: Outgoing wire transfers, j Incoming wire transfers. j Number. Amount. j Number.! Amount. St. Louis 18,521 I $846,699,431.44 12,077 $411,381,770.78 Louisville... 4,247 164,013,124.38 1,455 85,155,141.26 Memphis 3,173 I 67,283,608.48 3,644 114,025,982.23 Little Rock. 2,151 ; 41,208,405.82 3,643 94,085,650.36 Totals: 1921 28,092 j 1,119,204,570.12 20,819 704,648,544.63 1920 j 32,068 1,225,250,058.53 17,982 756,496,519.11 NATIONAL BANKS GRANTED FIDUCIARY POWERS. At the end of 1921 there were 89 national banks in the Eighth Federal Reserve District authorized to exercise fiduciary powers under the provisions of section 11 (k) of the Federal Reserve act, as amended September 26, 1918, a net gain for the year of 8 banks. The distribution by States of these banks was as follows: Arkansas, 15; Illinois, 21; Indiana, 15; Kentucky, 20; Mississippi, 2; Missouri, 15; and Tennessee, 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8-—ST. LOUIS. 611 MOVEMENT OF MEMBERSHIP. On January 1, 1921, the Federal Reserve Bank of St. Louis had a total of 571 member banks, consisting of 480 national banks and 91 State banks and trust companies. Its authorized capital was $8,741,000, of which $4,364,750 was paid in. During the year 9 new national banks were admitted to membership and 6 surrendered their memberships through liquidation or consolidation. Fourteen State banks and trust companies became members. On December 31, 1921, this bank had a membership of 588, consisting of 483 national banks and 105 State banks and trust companies, an increase of 3 national banks and 14 State institutions for the year. The total authorized capital stock was $9,206,100, of which $4,603,050 was paid in. The paid-in capital increased $238,300 during the period under review. On June 30, 1921, there were 1,128 eligible nonmember State banks and trust companies in this district, with total resources aggregating approximately $628,106,000. The total resources of the 105 member State banks and trust companies at the end of 1921 amounted to $417,959,000, which is almost 40 per cent of the total resources of all eligible State institutions in the district. Several applications of State banks for membership were pending at the close of the year. EXAMINATION DEPARTMENT. Examiners of the Federal Reserve Bank participated with the various State banking departments of the district in 89 examinations of 66 member State banks and trust companies. The Federal Reserve examiners also made 12 independent examinations of State banks applying for membership. FOREIGN ACCOUNTS. Reductions in balances of foreign accounts took place during the year under review. The Bank of England sterling gold account, with a balance of $3,029,109.69, was completely eliminated from the books of this bank. The balance to our credit with the Bank of France, earmarked gold account, as of January 1, 1921, $155,100, was eliminated by final withdrawal on March 30. Balance of a proportionate share of the Bank of Japan deposits, represented on January 1,1921, by $188,000, was increased by $188,000, making a balance on December 31, 1921, of $376,000. OPERATIONS OF BRANCHES. Routine operations of this bank in the southern sections of the district were handled largely through its three branches at Louisville, Ky., Memphis, Tenn., and Little Rock, Ark. To a much greater extent than in preceding years the member banks appeared to understand and appreciate the facilities afforded by the branches and to take advantage of them. This was true not only of discounting privileges, * but of such miscellaneous services as collections, clearings, transfer of funds, etc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

612 EEPORT OF THE FEDERAL RESERVE BOARD. LOUISVILLE BRANCH. Total earnings of the Louisville branch in 1921 were $691,550.96 and its expenses amounted to $186,866.58, leaving net earnings of $504,684.38. Of the total earnings, $681,313.36 were derived from bills discounted for member banks. Bills discounted for member banks in 1921 totaled $362,424,862.17. During 1921 the Louisville branch handled 6,209,943 clearing items, representing a face value of $976,889,080. It handled a total of 18,628 collection items, amounting to $26,711,547.35. Currency receipts of this branch from member and nonmember banks for the year amounted to $80,624,578.07 and its shipments totaled $61,451,- 183.88. MEMPHIS BRANCH. In 1921 total earnings of the Memphis branch amounted to $1,151,991.88 and the expenses to $246,249.29, with the resultant net earnings of $905,742.59. Of the total earnings, $1,131,409.76 were derived from bills discounted for member banks. During the year this branch discounted a total of $215,454,134.12 of paper for member banks and purchased bankers' acceptances in the sum of $38,037.22 from member banks. The Memphis branch in 1921 handled a total of 2,897,023 clearing items, representing $471,659,642. It handled 17,065 collection items amounting to $18,764,347.87. The currency receipts from member and nonmember banks for the year amounted to $47,732,464 and shipments totaled $47,844,259. LITTLE ROCK BRANCH. The earnings of the Little Rock branch for 1921 totaled $670,937.99 and its expenses were $169,314.90, leaving net earnings of $501,623.09. Of the total earnings, $654,361.58 were derived from bills discounted for member banks. In course of the year this branch discounted for member banks an aggregate of $141,079,685.86 of paper and purchased $19,735.27 of acceptances from member banks. A total of 4,252,127 clearing items was handled by the branch in 1921, amounting to $525,178,903. It also handled 12,685 collection items, amounting to $11,620,968.49. Its currency receipts from members and nonmember banks for the year amounted to $30,007,563 and its shipments aggregated $27,554,236. FISCAL AGENCY OPERATIONS. The year under review was the first full 12-month period during which the Federal Reserve Bank of St. Louis performed all the duties in this district of fiscal agent of the United States Government. Heretofore the larger part of sub treasury functions devolved upon this bank, but the few remaining activities in this category were transferred to it with the actual taking over of the St. Louis subtreasury on January 8, 1921. The principal business of the fiscal agency department consisted of receiving and disbursing funds for account of the Government, the sale and delivery of United States certificates of indebtedness, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8 ST. LOUIS. 613 Treasury notes, and war-savings securities; also the exchange and conversion of Liberty loan bonds for financial institutions and the public. Since July 1, 1921, the Federal Reserve Bank has absorbed the expenses of the fiscal agency department. CERTIFICATES OP INDEBTEDNESS. Nine offerings of tax certificates of indebtedness were made by the Government in 1921. One of these was in anticipation of income and excess profits taxes due in 1921, and the other eight were in anticipation of similar revenues due in 1922. All these issues, but more particularly those coming out in the latter months of the year, enjoyed tremendous popularity, and subscriptions were far in excess of the quotas allotted to this district. Financial institutions, corporations, and individuals subscribed to $4,705,000 of the first issue and to $51,813,000 of the other eight. In addition to the certificates of indebtedness, the Government made seven offerings of so-called loan certificates of indebtedness. The total subscriptions to these amounted to $48,015,000. Subscriptions to certificates of indebtedness in this district during the year under review were made by 1,198 different banks. Certificates of indebtedness to the amount of $107,909,000 were redeemed by the Federal Reserve Bank of St. Louis and its branches during 1921. TREASURY NOTES. In anticipation of refunding the Victory Liberty loan notes, which will mature in 1923, the Government made two offerings of Treasury notes, to mature in 1924. The total subscriptions to these two issues amounted to $25,952,600, and 687 banks in the district were among the subscribers. DELIVERY OF PERMANENT LIBERTY BONDS ON CONSIGNMENT. Pursuant to Treasury Department Circular No. 164, 25 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 privilege expired June 30, 1921, and all consignment accounts have since been closed and the collateral securing same withdrawn. 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 February 25 when securities totaled $2,321,350. The largest amount of bonds outstanding on consignment at any given time was $2,077,100 on February 9. Deliveries of permanent Liberty loan bonds on consignment for the year amounted to $6,243,550. These were divided among the several issues as follows: First Liberty loan bonds, convertible, 4J per cent of 1932-1947 $5, 500. 00 Second Liberty loan bonds, convertible, 4J per cent of 1927-1942 20, 000. 00 Third Liberty loan bonds, 4J per cent of 1928 43, 450. 00 Fourth Liberty loan bonds, 4J per cent of 1933-1938 6,174, 600. 00 Total 6, 243 550. 00 : 85227—22 40 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

614 KEPORT OF THE FEDERAL RESERVE BOARD. EXCHANGES AND CONVERSIONS OF LIBERTY LOAN BONDS. The volume of business transacted in 1921 by the fiscal agency department in connection with the exchange and conversion of war bond issues was extremely heavy. This bank and its branches received for exchange or conversion a total of 1,191,302 Liberty bonds and Victory notes of a par value of $233,107,600, and delivered 988,906 bonds and notes of the par value of $269,310,650. These figures represent the actual transactions handled during 1921, and the increase in the amount delivered over the amount received largely represents fourth temporary 4|- per cent Liberty bonds received during 1920, but the permanent bonds were not delivered until 1921. TREASURY SAVINGS SECURITIES. During 1921 only 8,800 thrift stamps, Treasury savings stamps, war savings stamps, and Treasury savings certificates, amounting to $391,230, were sold by this bank and other banks in the district. In 1920, 29,782 Treasury savings securities, aggregating $1,422,109, were sold. While the sales of savings securities during 1921 were considerably under those of the preceding year, circumstances considered, the showing is rather favorable. No active selling campaign was conducted and business depression and general unemployment tended to hold down the volume of sales, as did the higher interest returns offered by other investments during the early months of the year. Toward the close of the year there was a much better demand for this variety of security, and the new issue of Treasury savings certificates, which was placed on sale December 15, gives every indication of being more popular than preceding issues. There were redeemed during the year 9,128 Treasury savings securities, of the value of $170,555.75. In 1920, 45,722 securities, amounting to $1,236,034, were redeemed. This reduction in redemptions shows that a greater percentage of Treasury savings securities are remaining in the hands of the public. WAR FINANCE CORPORATION. During the early months of 1921 War Finance Corporation activities were discontinued. Later in the year, however, the corporation again became active, taking up loans in connection with financing needs of the agricultural communities. This necessitated a revival of the fiscal agency services of the Federal Reserve Banks. Advances made by this bank for account of the War Finance Corporation in 1921, including the handling of notes and collateral covering these operations, totaled $5,630,718.29. Detail of these advances is as follows: St. Louis, $1,142,140; Louisville branch, $149,378.47; Memphis branch, $3,707,139.21, and Little Rock branch, $632,060.61. GOVERNMENT CHECKS, WARRANTS, AND COUPONS HANDLED. During the year the Federal Reserve Bank of St. Louis and its branches handled a total of 2 012032 checks and warrants drawn 7 ; on the United States Treasurer, amounting to $202,057,794, as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8—ST. LOUIS. 615 shown by schedule 6. These figures show an increase of 367,903 in the number of items handled, but a decrease of $21,546,452 in the amount, as compared to 1920. The number of Government coupons handled in 1921 was 5,216,274 with a face value of $30,405,260.28. which compares with 6,332,980 coupons amounting to $28,60^,861.67 in 1920. The Government deposits in the Federal Reserve Bank of St. Louis at the close of business December 31, 1921, amounted to $3,802,000, as compared to $2,618,000 at the close of 1920. SCHEDULE 1.—COMPARATIVE STATEMENT OP CONDITION. [In thousands of dollars.] i Dec. 31, Dec. 31, Dec. 31, i 1921. 1920. 1919. ! RESOURCES. Gold and gold certificates 3 257 5,129 2,757 Gold settlement fund—Federal Reserve Board 22,963 21,7,63 17,888 G old with foreign agencies 155 6,172 Total gold held by bank... . . .. . . .. 26,220 27,047 26,817 Gold with Federal Res erve Agent 66,158 49,337 61,625 Gold redemption fund 3,695 6,404 6,132 Total gold reserves 96,073 82,788 94,574 Legal tender notes, silver, etc 10,568 6,088 2,354 Totalreserves 106,641 88,876 96,928 Bills discounted: Secured by United States Government obligations 21,831 43,776 45,069 All other . 41 222 71 156 32,611 Bills bought in open market 218 1,200 32,804 Total bills on hand 63,271 116,132 110,484 United States bonds and notes 1,161 1,153 1,153 United States certificates of indebtedness: One-year certificates (Pittman Act) 6,569 15.568 17,068 Allother ' 203 '455 170 Total earning assets 71,204 133,308 128,875 Bank premises . . 615 541 356 5 per cent redemption fund against Federal Reserve Bank notes 523 623 672 Uncollected items - 33,744 39,224 73,843 All other resources 760 530 420 Total resources 213,487 263,102 301,094 LIABILITIES. Capital paid in 4,603 4,365 4,064 Surplus 9,388 8,346 3,724 Deposits: G overnment .. . . 3,802 2,618 2,353 Member bank—reserve account 64,613 66,903 72,283 Allother 849 716 3,947 Total deposits 69,264 70,237 78,583 Federal Reserve notes in actual circulation . .. 95,246 135,785 145,298 Federal Reserve Bank notes in circulation—net liability ' 3,923 9,487 15,499 Deferred availability items 30,263 34,032 53,381 All other liabilities 800 850 545 Total liabilities 213,487 263,102 i 301,094 Ratio of totalre$erves to deposit and Federal Reserve note liabilities combined 64.8 144.3 147.6 i Calculated on basis of net deposits and Federal Reserve notes in circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES DURING 1921. [Amounts in thousands of dollars.] Bills discounted for member Purchased bills. Reserve percentbanks in this district.1 ages.* Date. ( e 2 a a T + s r o n s 5 e t i + a n ts 8 l g ). Total. G S U S e o n t c b v a i u y t e t r e e r e d n s d - P ( e 3 r - c 2 e ) n . t ( T 6 h o + el t 7 d a ) l . R F B o f e e o r t d s o u h e e m g e r r v h r a e t l I i m c n h P a o a u r p s k r e e - e d n t U s S e t n i c t e a i u t s t r e e . i d s - re T s c e a o r s t v l a i e l s. de T p o o t s a i l ts. jus A te d d - .'5 ment Banks. ! (5-6). obligations. Jan. 7 123,654 105,937 39,597 37. 4 606 606 17,111 95,287 69,418 131,697 48.2 14 ... 119,359 101,653 37,256 36.7 585 585 17,121 95,087 67, 482 129,513 49.2 21 122,413 104,320 40,600 38. 9 948 948 17,145 91,815 68,506 126, 468 47. 5 28 117,120 98,989 40,315 40.7 1,014 1,014 17,117 95,051 68,161 125,448 49.6 Feb. 4 114,450 97,070 38,347 39. 5 334 334 17,046 99,598 70,398 124,601 51.4 11 107,511 89,393 35,205 39.4 688 688 17, 430 10 i, 993 70, 403 122, 847 54.6 18 108,387 90,452 34,758 38.4 387 387 17,548 j 104,855 71,775 123,203 54.3 95 107,375 89,180 33,918 38.0 964 964 17,231 103,405 68,436 !122,98i 54. 2 Mar. 4 106,309 89,442 35,079 39.2 2,170 I 1,000 1,170 14,697 104,577 69,633 j123,237 54.7 55. 2 11 101,636 84,709 34,753 41.0 2,111 1,000 1,111 14,816 107,182 70,418 120,351 56.6 57.2 18 109,636 92,799 35,889 38.7 2,330 1,000 1,330 14,507 102,508 73,264 119,283 53.2 53.8 25 109,172 92,644 37,204 40.2 2,030 1,000 1,030 14,498 93,593 67,684 115,944 51.0 51. 5 Apr. 104,387 87,685 36,665 41.8 2,225 1,000 1,225 14,477 96,512 65,629 116,103 53.1 53.7 8 . '. .' . 100,137 84,506 35,993 42.6 1,380 50 1,330 14,251 103,494 67,005 115,111 56.8 56.9 15 94,438 78,719 35,225 44.7 1,453 1,453 14.260 105,453 66,622 113,756 58.5 22 . ... 96,120 80,487 34,584 43.0 784 784 14,849 101,572 65,879 112,183 57.0 27 95,656 80,671 34,564 "42.8 764 764 14,221 100,378 66,862 109,808 56.8 May 4 ;*;. : 93,351 78,549 34,225 43.6 575 575 14,227 103,031 66,741 110,973 58.0 11 86,002 71,195 31,091 43.7 570 570 14,237 107,525 65,542 109,146 61.6 18 . . 89,252 74,556 32,040 43.0 435 435 14.261 105, 871 67,645 108,600 60.1 25 91,736 75,9S7 31,266 41.1 1,515 1,515 14,234 99,232 65,080 105,849 58.1 June 1 96,003 82,250 31,761 38.6 528 528 13,225 91,893 61,954 107,875 54.1 94,588 80,747 31,495 39.0 562 562 13,279 92,435 63,059 104,963 55.0 15 . 100,240 77,008 30,623 39.8 372 372 22,860 90,276 67,648 104,272 52. 5 22 93,468 79,813 31,428 39.4 272 272 13,383 87,818 59,196 102,499 54.3 29 97,177 84,045 31,782 37.8 219 219 12,913 85,805 60,847 102,669 52. 5 July 6 100,203 87,153 32,556 37.4 104 104 12,946 85,081 63,358 104,739 50.6 13 94,817 81,472 31,133 38.2 136 136 13,209 87,286 62,210 101,750 53.2 20 .... 95,771 82,892 31,857 38.4 So 85 12,794 87,068 61, 774 101,257 53. 4 27 94,379 81,305 30,901 38.0 230 230 12,844 87,602 63,139 99,274 53.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Aug. 3 i 93,029 79,420 29,366 37. 0 340 340 13,269 92,563 65,803 99,980 10 83,811 70,395 26,091 37.1 123 123 13,293 97,646 62,601 98,748 60.5 17 87,322 73,814 28,100 38.1 357 357 13,151 95,513 64,106 99, 298 58. 5 24 83,838 70,766 27,174 38.4 139 139 12,933 95,874 62,281 97,771 59. 9 31 86,530 73,098 27,325 37.4 437 437 12,995 93, 806 61,780 98,359 58.6 Sept. 7 86,599 73,828 28, 722 38. 9 374 374 12,397 93,536 64,090 98,936 57 4 14 86,143 73,483 28,198 38.4 304 304 12,356 93,066 61,455 99,347 57. 9 21 88,238 75,291 26,857 35. 7 592 592 12,355 92,434 61,872 100,215 57. 0 28 87,083 73,583 28,055 38.1 1,108 1,108 12,392 95,528 61,758 100,470 58.9 Oct. 5 87,150 76,221 27,337 35. 9 501 504 10,425 97,132 62,680 103,416 58.5 11 78,101 67,367 25,601 38.0 247 247 10,487 107,624 64,315 103,120 64.3 19 80,368 70,737 26,330 37.2 299 299 9,332 104,550 62,679 103,126 63.1 26 ! 73,905 64,304 23,522 36.6 212 212 9,389 112,471 65,478 101,972 67.2 Nov. 2 74,032 64,780 22,843 35.3 380 380 8,872 111,639 64,763 103,145 66.5 9 ! 70,666 61,242 22,895 37.4 545 545 8,879 112,574 63,671 101,976 68.0 16 76,766 66,773 24,978 37.4 1,528 1,528 8,465 109,685 64,568 102,914 65. 5 23 76,364 66,613 23,843 35.8 1,213 1,213 8,538 106,922 64,663 100,507 64.7 30 ! 76,799 67,349 24,948 37.0 914 914 8,536 104,578 64,730 99,940 63. 5 Dec. 7 ! 71,980 63,178 22,008 34.8 396 396 8,406 108,542 64,335 98,196 66.8 14 1 ! 69,737 61,588 24,877 40.4 180 180 7,969 111,525 66,397 97,708 68.0 21 ; 75,759 67,260 24,759 36.8 382 382 8,117 104,697 65, 763 97,746 64.0 28 i 74,298 66,029 23,533 35.6 148 148 8,121 103,151 66,607 96,654 63.2 1 No bills were discounted for or with other Federal Reserve Banks. 2 Prior to Mar. 18 net deposits, as given below, were used in calculating reserve percentages: Jan. 7 $65,819,000 Feb. 4 $68,994,000 Mar. 4 $67,927,000 14 63,672,000 11 69,-500,000 11 68,934,000 21 66,781,000 18 70,007,000 28 65,996,000 25 67,817,000 3 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 blank in this column indicates that no accommodation was extended to or received from other Federal Reserve Banks. O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

618 REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK OF ST. LOUIS MOVEMENT OF EARNING ASSETS DURING 1920 AND 1921 MILLIONS OF DOLLARS MILLIONS OF DOLLARS uNTrEC)S1"ATES SECURITIES 20 i I f i i i i 1f i m w PURCHASED BILLS 40 20 20 h O O 180 180 DISCOUNTED BILLS (SEE NOTE BELOW). 1920 1321 A - Paper saoured by U* 3. Govornmant obligations disootmted for ban^s in district. B - Total paper discounted for banks in district, C - Sotal discounted paper hold. spaoe between lines B and 0 represents - where above line B - paper discounted for. and - where below line B - paper rediscounted with, other Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8 ST. LOUIS. 619 FEDERAL RESERVE BANK OF ST. LOUIS DEPOSITS, F.R. NOTE CIRCULATION, CASH RESERVES AND RESERVE RATIOS, 1920-1921 PERCENT PERCENT 90 90 AL RE :R> OS D 80 80 70 k 60 /- ;\ 50 40 /•^. 40 * 3 f*%,• N 20 \ / i 1O 0 MILLIONS 07 DOLLARS MILLIONS OF DOLLARS 200 DEPOSITS 150 >*< 100 1 1 I I 50 1 1 1 1 1 11 A 1iiiiii • 11ii 250 F.R.NOTE CIRCULATION 200 DEPOSIT AND F.R.NOTE LIABILITIES!L, AND TOTAL RESERVES/C 5% 1920 1921 Adjusted percentages are oaloulated after reduoing or Increasing reserres held by the oncmnt of aooonaodatlon rsoelred from or extended to other Federal Beserre books. She deposit ourre is based on "net deposits" up to uaroh 11, 1921, and on "total deposits" thereafter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.—VOLUME OF PAPER DISCOUNTED AND BOUGHT. to o [In thousands of dollars.] Discounted paper. Purchased paper. j Total discounted and purchased I paper. Month. Se G c o u v re e d rn b - y Bankers' Trade t A ur g a r l i c a u n l d - All Bankers' \ Dollar ment ob- accept- accept- live-stock other. accept- ! ex- 1921 1920 ligations. ances. ances. paper. | ances. ! change. January 87,103 521 741 1,308 1,308 145,548 200 210 1 149,401 February 67,949 333 621 49 1,572 1,572 123 222 172527 | 126 9?4 March..'. 89,059 947 325 59 1,600 1,600 156 018 275513 1 195 052 April 87,983 579 438 41 1,813 1,678 135 136,'789 266,764 j 202,481 May 85,079 1,851 141 45! 2,263 1,943 320 139,469 208,077 1 210,712 June 84,644 1,291 299 55 947 817 130 148,228 181,391 i 179,728 July 91,956 1,196 373 36! 756 716 40 134,834 194,602 154,273 August SO,907 113 243 32: 1,188 1,148 40 118,721 206,706 159,890 September 80,041 262 290 45 i 2,651 2,526 125 131,972 208,639 215,578 October 80,969 464 554 35,' 754 754 121,983 210,265 : 223, 896 November 84,418 325 578 54 4,113 3,993 120 151,170 178,751 185,436 December 74,431 92 538 39, 1,222 1,222 121,257 170,616 184,762 V Total. 1921 994,539 7,974 5,141 52,192 ! 549,178 20,187 19,277 910 1,629,211 2 1920 1,441,231 7,123 13,471 976,*216 ' 36,020 35,770 250 2 474061 ' 1919 1.895,246 7,946 197,439 87,502 87,502 2,188,133 m 2 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 8 ST. LOUIS. 621 SCHEDULE 4.—EARNINGS AND EXPENSES. 1921 1920 EARNINGS. Discounted bills $4,739,032 $6,382,357 $2,918,462 Purchased bills 41,427 273,425 564,495 United States securities— 284,151 391,611 320,412 Transfers—net earnings 10,570 Deficient reserve penalties. 80,640 104,164 52,373 Miscellaneous 21,065 28,560 18,166 Total earnings. 5,166,315 7,180,117 3,884,478 CURRENT EXPENSES. Salaries: Bank officers 151,043 126,916 95,040 Clerical staff 931,158 747,312 400,860 Special officers and watchmen 28,069 22,984 13,408 All other 38,763 30,693 20,289 Governors' conferences 675 277 553 Federal Reserve Agents' conferences 287 282 229 Federal Advisory Council 1,200 1,200 1,150 Directors' meetings 11,948 11,849 11,586 Traveling expensesx 29,373 25,525 22,933 Assessment for Federal Reserve Board expenses 31,597 26,618 24,981 Legal fees 116 1,505 61 Insurance (life, fidelity, casualty, workmen's compensation, and general liability) 39,654 27,107 18,961 Banking house: Taxes and fire insurance 2,284 Light, heat, and power 3,184 R A e ll p o a t i h rs e r and alterations 2 1 9 6 6 8 97,264 43,980 Rent, including light, heat, and power, and minor alterations 63,897 Fire insurance—furniture and equipment 907 Printing and stationery 65,809 76,743 34,676 Telephone 8,217 6,629 3,548 Telegraph 43,262 44,800 15,609 Security shipments 5,072 C Po u s rr ta e g nc e y a a n n d d e c x o p i r n e s s s h a i g p e m ( e o n t t h s er than on money and security ship- 30,646 139.221 107,228 ments) '. * 87,479 Furniture and equipment 54,082 176,102 73,798 Federal Reserve currency: Original cost, including shipping charges 236,047 238,051 188,617 Cost of redemption, including shipping charges 20,049 32,988 20,313 Taxes on Federal Reserve Bank note circulation 26,500 58,000 58,300 All other expenses 49,468 32,390 18,673 Total current expenses 1,961,250 1,924,456 1,174,793 Current net earnings 3,205,065 5,255,661 2,709,685 I PROFIT AND LOSS ACCOUNT. Earnings 5,166,315 7,180,117 3,884,478 1,961,250 1,924,456 1,174,793 Current expenses Current net earnings 3,205,065 5,255,661 2,709,685 Additions to current net earnings: Assessments account expenses Federal Reserve Board previously charged to profit and loss 19,520 All other 13,241 Total additions 13,241 19,520 Deductions from current net earnings: DReesperrevceia ftoiorn p oalslsoiwblaen lcoesss eosn. bank premises 2 1 1 5 1 0 2 ,0 ,2 0 2 0 4 350 000 335,000 Reserve for depreciation on United States bonds 34,615 Assessment account expenses Federal Reserve Board.. 19,520 All other 4,156 "i5,"666" 11 Total deductions 266,380 399,615 354,531 Net deductions from current net earnings 253,139 380,095 354,531 Net earnings available for dividends, surplus, and franchise tax 2,951,9 4,875,566 2,355,154 Dividends paid 270,253 253,711 234,660 Transferred to surplus account 1 1 , , 0 6 4 3 2 9 , , 5 1 6 0 4 9 4,621,855 2,120,494 Franchise tax paid United States Government 1 Other than those connected with governors' and agents' conferences and meetings of directors and of the advisory council. 2 Includes reserve of $100,000 for dismantling old building. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

622 REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE 5.—CURRENCY RECEIPTS FROM AND PAYMENTS TO MEMBER AND NON- MEMBER BANKS. [In thousands of dollars.] Receipts. Payments. Total receipts. Total payments. Month. From From To To nonmem- non- mem- member member ber ber 1921 1920 1919 1921 1920 1919 banks. banks. banks. banks. January 41,278 3,478 23,956 1,932 44,756 34,529 28,206 25,888 22,337 5,976 February... 30,272 2,994 25,303 2,948 33,266 26,148 16,234 28,251 26,988 9,435 March 38,252 3,169 24,129 2,641 41,421 35,633 18,622 26,770 24,643 11,102 April 33,432 2,993 26,640 2,566 36,425 36,193 24,216 29,206 27,121 8,489 May 33,742 2;724 24,685 2,805 36,466 33,904 22,762 27,490 27,359 12,065 June 36,946 2,926 25,117 2,726 39,872 38,340 24,163 27,843 28,566 11,308 July 32,552 2,874 25,056 2,959 35,426 36,945 26,441 28,015 32,284 13,774 August 32,094 2,691 25,037 2,951 34,785 35, 261 21,067 27,988 32,753 18,528 September 32,245 2,684 31,866 6,844 34,929 38,137 23,373 38,710 37,432 23,827 October 35,245 2,967 31,999 6,578 38,212 40,083 26,258 38,577 40,642 32,871 November 36,617 2,902 26,591 4,010 39, 519 42,066 24,654 30,601 31,586 29,541 December 50,217 2,868 32,073 4,292 53,085 46,188 32, 741 36,365 38,6^4 28, 531 Total, 1921.... 432,892 35,270 322,452 43,252 468,162 365,704 1920.... 412,141 31, 286344,457 25,878 443,427 370,335 j 1919.... 273,198 15,539 202,306 3,141 288,737 "I" I 2 2 0 0 5 5 , 4 4 4 47 SCHEDULE 6.—OPERATIONS OP FEDERAL RESERVE CLEARING SYSTEM. [Figures include cash items only.] [Numbers in thousands; amounts in thousands of dollars.] Items drawn on banks in own district. Items forwarded Items drawn on to other Federal Located in Federal Located outside Treasurer of eral Reserve Reserve Bank Federal Reserve United States. Banks and their Period. and branch cit- Bank and branch branches. ies. cities. N b u e m r. - Amount. \T \ Amount. N b u e m r. - Amount. N b u e m r. - Amount. Jan. 1-15 214 170,872 995 71,794 64 8,962 21 3,664 Jan. 16-Feb. 15 437 324,860 1,863 122,489 132 18,211 41 6,574 Feb. 16-Mar. 15 ... 479 297, 764 1,961 ; 124,211 95 14,852 50 9,324 Mar. 16-Apr. 15 525 338,474 2,263 i 141,760 187 21,351 50 8,521 Apr. 16-May 15 410 266,560 1,976 120,775 238 17,969 41 6,996 M Ju a n y e 1 1 6 6 - - J J u u n ly e 1 1 5 5 4 4 4 3 5 8 2 28 7 9 5 ; ,3 3 9 4 2 7 2 1 , , 1 99 3 5 0 ! 1 1 2 2 4 0 , , 6 8 7 3 7 6 1 1 4 6 6 9 1 18 4 , ,4 3 9 7 9 5 5 5 0 0 ' 9 9 , , 1 91 5 4 8 July 16-Aug. 15 417 274,453 2,009 i 118,767 154 16,748 58 7,879 Aug. 16-Sept. 15 426 277,245 2,091 i 124,631 122 13,942 62 9,128 Sept. 16-Oct. 15 454 328,434 2,241 ; 147,721 192 15, 560 64 10,112 Oct. 16-Nov. 15 466 326,780 2,299 i 142,692 256 18, 332 63 8,170 Nov. 16-Dec. 15 560 336, 877 2,316 | 138,938 160 15, 626 52 8,316 Dec. 16-Dec. 31 308 175,322 1,175 ; 68,728 97 7,631 27 4,930 Total, 1921 5,579 I 3,682,380 25,314 j 1,568,019 2,012 202,058 629 102,686 1920 5,084 5,009,163 23,823 2,120,383 1,644 223,604 520 182,747 1919 3, 715 4,181,543 12,887 1,393,981 2,225 286,875 281 146,137 Total number.1 Total amount.1 Period. 1921 1920 1919 1921 1920 1919 Jan. 1-15 1,294 1,076 533 255,292 332,892 ! 201,774 Jan. 16-Feb. 15... 2,473 2,209 1,240 472,134 635,986 462,187 Feb. 16-Mar. 15.. 2,585 2,466 1,185 446,151 692,006 397,096 Mar. 16-Apr. 15.. 3,025 2,761 1,525 510,106 713,408 \ 463,649 . Apr. 16-May 15.. 2,665 2,670 1,566 412,300 640,135 ! 443,726 May 16-June 15.. 2,771 2,464 1,401 438,437 610,846 456,519 June 16-July 15.. 2,652 2,530 1,465 423,761 580,851 ' 459,605 July 16-Aug. 15.. 2,638 2,497 1,598 417,847 573,616 482,582 Aug. 16-Sept. 15.. 2, 701 2,656 1,579 424,946 614,332 496,851 Sept. 16-Oct. 15.. 2,951 2,785 1,768 | 501,827 664,100 ' 565,810 Oct. 16-Nov. 15.. 3,084 2,821 2,073 495,974 615,596 632,198 Nov. 16-Dec. 15.. 3,088 2,717 2,006 499,757 572,531 609,516 Dec. 16-Dec. 31.. 1,607 1,419 1,169 256,611 337,023 Total, 1921 33, 534 5,555,143 1920 : 31,071 7,535,897 1919 19,108 j i, 008,536 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. The year of 1921 was a period of financial readjustment in the Northwest. The fall of prices in 1920 and the impairment of confidence which resulted from this decline caused grave financial distress in the agricultural sections of the United States. In the country districts financial readjustment has been limited to a reduction of wages paid to hired help and a curtailment of purchases of agricultural implements and other items not absolutely necessary. On the contrary, banks in the larger cities have experienced noticeable improvement during 1921, which enabled them to reduce their borrowings. FINANCIAL CONDITIONS IN 1921. The total of the outstanding loans of this bank to its member banks indicates very clearly the credit situation in this district. During 1921 these loans were greatly reduced. On January 7, 1921, thev reached the highest point of the year, totaling $94,000,000. By "March 11 they had been reduced to about $66,000,000. Thereafter the demands of farmers for funds, first to meet spring planting expenditures and later to pay harvesting expenses, caused member banks to increase their borrowings from us to nearly $86,000,000 on August 24. From this date member bank borrowings from us declined steadily to little more than $52,000,000 on December 28. The total reduction from the highest point of the year (January 7) to the lowest point (December 28)'amounted to 45 per cent. A small part of this reduction of borrowings from us during the latter part of 1921 was helped indirectly by the loaning of $14,000,000 to banks in rural communities by the War Finance Corporation between November 7 and December 31. The percentage of our cash reserve to deposits and Federal Reserve notes in circulation combined did not reach a point lower than 38.6 per cent in 1921, owing to our ability to borrow from other Federal Reserve Banks. The percentage which would have existed if we had not been able to rediscount with other Federal Reserve Banks is a better measure of conditions. Beginning with a percentage of 29.2 per cent on January 7, this adjusted reserve rose to 50.4 per cent on March 11, and then declined to 22 per cent on August 24, which was the low point of the year. The percentage then rose weekly to December 28, when it stood at 56.7 per cent, the highest point reached during the year. It became increasingly difficult for member banks to carry reserve deposits with this Federal Reserve Bank large enough to meet legal requirements during 1921, owing to withdrawals of deposits and slow collection of loans. Their total deposits with us declined about 623 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

624 REPORT OF THE FEDERAL RESERVE BOARD. $5,000,000. During the year 744 banks were penalized for deficient reserves (as compared with 698 banks in 1920) out of the total membership on December 31, 1921, of only 1,024 banks. The elastic nature of the Federal Reserve note makes it an excellent index of changes in the volume of business and the movement of prices combined. From a total of $78,000,000 on January 7, our circulation declined to $55,500,000 on August 24. Thereafter it increased to $58,000,000 on October 11, then declined to a little over $56,000,000 on November 30, and again rose to about $57,500,000 on December 28. Allowing for gradually declining prices, there is depicted a pronounced slump in business during the first eight months of 1921, followed by a moderate amount of activity incident to harvesting and marketing the crops, and finally a little pick-up at the close of the year caused by Christmas buying. LOANS AND DISCOUNTS. The Minneapolis Federal Reserve Bank discounted paper during 1921 for 765 member banks, or 75 per cent of the total number of member banks in the district. The number of banks served shows an increase over 1920, when only 704 banks were served, representing about 70 per cent of the total membership. More than 104,000 pieces of discounted paper were handled in 1921, as compared with 73,000 in 1920, but the amount involved in 1921 was only $730,000,000 as compared with $953,000,000 in 1920. More South Dakota banks in proportion to the total membership from that State borrowed from the Minneapolis Federal Reserve Bank than was the case for any other State in this district. In South Dakota 93 per cent of the member banks discounted paper with the Federal Reserve Bank during some part of 1921. Montana was next, with 82 per cent of its membership receiving accommodation. The percentages for the other States were as follows: North Dakota, 81 per cent; Minnesota, 68 per cent; Wisconsin, 47 per cent; and Michigan, 45 per cent. Every State except Minnesota increased its borrowings in proportion to the total number and amount of rediscounts at the Minneapolis Federal Reserve Bank between 1920 and 1921. The rural banks of Minnesota increased their proportion of the total borrowings from the Federal Reserve Bank, but the proportion for the State as a whole was lowered through the fact that Twin City member banks greatly reduced their borrowings. On December 31, 1920, the borrowings ($50,600,000) of Twin City banks represented 53 per cent of the total member bank borrowings in the Ninth Federal Reserve District, of which a large part had been reloaned by them to country banks. On December 31, 1921, the borrowings of the same Twin City member banks ($10,800,000) were but 21 per cent of the total borrowings from this Federal Reserve Bank. City banks in general throughout the district have been a constantly decreasing factor during 1921 in Federal Reserve Bank discounts. The importance of United States Government obligations as collateral for rediscounts was greatly reduced during 1921. While total paper discounted by the Federal Reserve System for member banks in this district declined 45 per cent, from $94,000,000 to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT KO. 9 MINNEAPOLIS. 625 $52,000,000, during the year, discounts secured by United States Government obligations declined 64 per cent, from $20,000,000 to $7,000,000. At the beginning of the year paper secured by United States Government obligations was 22 per cent of the total discounts, and at the end of the year it was reduced to 14 per cent of the total. DISCOUNT RATES. The more important discount rates of the Minneapolis Federal Reserve Bank were reduced three times during 1921. On May 10 commercial and agricultural paper rates and rates on member banks' notes with this class of collateral were reduced from 7 to 6£ per cent. At the same time the rate on customers' and member banks' notes secured by Treasury certificates of indebtedness was raised from 5-£ to 6 per cent. On this date the rate of discount for bankers' acceptances and notes secured by Liberty bonds and Victory notes remained at 6 per cent. On June 14 an additional rate of 6 per cent was quoted for customers' and member banks' notes secured by Treasury notes. On October 5 a flat rate of 6 per cent for all classes of paper was established, and on November 7 this flat rate was reduced to 5J per cent. FEDERAL RESERVE NOTES. The business depression existing in 1921 caused a reduction of 29 per cent in Federal Reserve notes in actual circulation between December 31, 1920, and December 31, 1921. The total amount in actual circulation dropped from $79,498,000 to $56,789,000. Although it is considered necessary to keep as stocks for immediate use about $10,000,000 of Federal Reserve notes at Minneapolis and about $2,500,000 at Helena, the combined stocks were allowed to decline to $9,390,000 at the close of 1921 in preparation for expected returns of fit-for-use Federal Reserve notes by the banks during the first few weeks of 1922. An important factor in securing elasticity of the Federal Reserve note issue is the law requiring each Federal Reserve Bank to return direct to every other Federal Reserve Bank all Federal Reserve notes issued by such other Federal Reserve Banks. During 1921 this rule caused the return of nearly $33,000,000 of Minneapolis Federal Reserve notes from other districts and the return by this bank of Federal Reserve notes from other districts to about the same amount. The largest volume of receipts of our Federal Reserve notes from other districts occurred in January, February, and March, and the Minneapolis bank returned the largest amounts of notes to other districts in January, May, June, and July. The different denominations of these notes vary as to their elasticity. It appears that the $20 bill is responsible for the greater part of the elasticity in the total circulation. There was a reduction of $10,000,000 in 20's, $7,500,000 in 10's, and $2,000,000 in 5's in 1921. The larger denominations—50's, 100's, 500's, and 1,000's— have a lesser degree of elasticity, owing to the fact that they do not circulate freely but are used mainly as bank reserves and in interbank transactions. The $5 bill retains its character as " small Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

626 REPORT OF THE FEDERAL RESERVE BOARD. change/7 as is evidenced by its resistance to contraction shown in the dollar amount outstanding as well as in its relatively larger number in circulation. As collateral security for the Federal Reserve notes, there was held by the agent on December 31, 1921, more than $49,000,000 in eligible paper and almost $17,000,000 in gold coin or certificates and gold deposits in the redemption fund and with the Federal Reserve Board at Washington. As gold held by the bank proper is also available for the reserve required for these notes, the requirement of 40 per cent in gold was amply covered on this date. FEDERAL RESERVE BANK NOTES. On December 31, 1921, there were in actual circulation $4,219,656 in Federal Reserve Bank notes, showing a reduction of 45 per cent from the amount outstanding a year ago. The reduction was accounted for by a 32 per cent decline in l?s, a 63 per cent decline in 2's, and a 64 per cent decline in 5's. From September 20, 1918, when Federal Reserve Bank notes were first issued, to December 31, 1921, $22,580,000 in these notes were received from the Comptroller of the Currency and $18,225,800 were destroyed at Washington. CHANGES IN THE BALANCE SHEET. Between December 31, 1920, and December 31, 1921, capital, surplus, and deposits immediately available of member banks increased slightly, while Federal Reserve notes and Federal Reserve Bank notes in actual circulation declined $26,000,000. Gold and other legal reserves against deposits and Federal Reserve notes increased almost $14,000,000. Bills discounted and purchased declined almost $32,000,000 during the year. On December 31, 1921, moreover, this bank had no contingent liability for rediscounts with other Federal Reserve Banks, while a year ago there was a contingent liability on this account of more than $14,000,000. The gross earnings of this bank during 1921 were but $4,966,311, as compared with $5,307,381 in 1920. The current expenses during 1921 of $1,325,867 included $168,116, representing cost and taxes for Federal Reserve and Federal Reserve Bank note circulation. After making minor adjustments in the profit account for depreciation on bank premises and other matters and setting aside a reserve for possible losses of $500,000, the net earnings available for dividends, surplus, and franchise tax amounted to $3,515,154. Dividends totaling $211,657 were declared at the rate of 6 per cent per annum on our paid-up stock and paid to member banks. There was transferred to surplus account $488,530, and the remainder, amounting to $2,450,967, was paid to the United States Government as a franchise tax. CHECK CLEARINGS, COLLECTIONS, AND WIRE TRANSFERS. Our check collection department handled 23,612,000 items during 1921, amounting to $2,916,117,000, as compared with but 21,589,000 items handled in 1920, amounting to $3,908,858,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9 MINNEAPOLIS. 627 Our collection department received 282,189 items during 1921, and collected 266,834 items, amounting to $109,689,726. In 1920 this department received but 154,923 items, and collected 148,749 items, amounting to $125,044,297. This bank purchased 12,769 wire transfers'during 1921, amounting to $897,398,827, and sold 10,066 wire transfers amounting to $409,- 722,496. The greatest volume of transfers was made with the Chicago and New York Federal Reserve Banks. FISCAL AGENCY FUNCTIONS. The fiscal agency operated by us for the United States Government paid 3,588,452 Government coupons, amounting to $14,346,797, and redeemed about 4,500 United States certificates of indebtedness, amounting to $33,971,500, during 1921. Exchanges and conversions, particularly of temporary for permanent bonds of the fourth Liberty loan issue, played a very important part in the fiscal agency services performed by us during 1921. In the aggregate, conversions and exchanges of 1,225,893 pieces were received and 749,474 pieces were delivered, the transactions totaling $230,000,350. From the foregoing figures, which show a smaller number of pieces delivered than received, it appears that Liberty bonds and Victory notes were being absorbed by permanent investors or banks which desire large denominations for their greater convenience. In addition to the foregoing, this department made purchases of $175,100 in Victory notes for the United States Treasury, and received $313,000 in Liberty bonds and Victory notes for payment of inheritance taxes, and war savings securities were sold to the amount of $50,428, and redeemed or paid to the amount of $4,713,769. This bank assisted in the allotment of 18 issues of United States certificates of indebtedness and Treasury notes during 1921. In the operation of this department, 1,779 individual allotments were made, amounting to $87,635,500. In addition to handling the original allotments, repurchases and resales of these certificates of indebtedness, to relieve banks which could not afford to hold them and to assist those banks also who desired to invest in them, amounted to $60,199,100. MEMBERSHIP. At the close of the year there were 1,024 member banks in this district as compared with 1,009 at the beginning of the year, or a gain of more than 1 per cent. As the Federal Eeserve Act requires a payment on capital stock equal to 3 per cent of the combined capital and surplus oi member banks, and our capital increased $108,100, it follows that these gains in membership represented banks having a combined capital and surplus amounting to about $3,603,300. T^ere was a net gain of 17 State banks and trust companies and a net loss of two national banks. The total membership at the close of 1921 was composed of 886 national banks and 138 State banks. Since the organization of this bank, 133 State banks have acquired membership by conversion and 138 have taken and retained membership as State banks, making a total of 271 State institutions which have entered the system. On June 30, 1921, there were 985 State Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

628 REPORT OF THE FEDERAL RESERVE BOARD. banks in this district eligible for membership, of which 13^ per cent held membership in the system. The State member banks had a capital and surplus totaling 22.6 per cent of all those eligible and had total resources equal to 22.3 per cent of all those eligible. FIDUCIARY POWERS. National bank members have continued to apply for trust powers under section 11 (k) of the Federal Reserve Act. Applications of 12 banks, w^ith a capital of $2/7OO OOO, were received and approved by 7 the Federal Reserve Board during 1921. BANK EXAMINATION DEPARTMENT. During the year this department made 206 examinations of State and national banks, with resources totaling $159,385,928, which includes examinations made of 24 State banks which applied for membership, of which number 5 later completed membership. All State bank members in the district were examined at least once in 1921, with the exception of one bank, which completed its membership on December 27. The total number of banks examined was more than three times as great as a year ago, and necessitated the use of 17 different examiners for part time or full time during the year, these examiners having covered 91,597 miles during the year. In addition to the regular examinations, 163 special trips were made to various banks to verify loans and securities, make estimates as to collectibility, and to render general assistance. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9 MINNEAPOLIS. 629 SCHEDULE 1.—COMPARATIVE STATEMENT OF CONDITION. [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, 1921. 1920. 1919. RESOURCES. Gold and gold certificates 9,140 9,130 8,275 Gold settlement fund—Federal Reserve Board- 31,115 8,456 4,872 Gold with foreign agencies 3,546 Total gold held by bank 40.255 17,675 16,693 Gold with Federal Reserve Agent. 16,856 25,905 35,847 Gold redemption fund.. 2,765 3,098 206 Total gold reserve 59,876 46,678 52,746 Legal tender notes, silver, etc. 811 250 65 Total reserves. 60,687 46,928 52,811 Bills discounted: Secured by United States Government obligations. 7,289 17,093 22,331 All other 43,923 64,561 51,526 Bills bought in open market 1,313 12,599 Total bills on hand 51,212 82,967 86,456 United States bonds and notes 115 116 116 United States certificates of indebtness: One-vear certificates (Pittman Act). 4,450 Allother Municipal warrants Total earning assets.. 55,866 91,563 95,052 Bank premises 763 590~ " 500 5 per cent redemption fund against Federal Reserve Bank notes 201 480 400 Uncollected items 14,505 21,606 24,406 All other resources 1,033 249 224 Total resources. 133,055 161,416 ! 173,393 LIABILITIES. Capital paid in.. 3,5o9 3,461 3,074 Surplus 7,4(38 6,980 3,569 Deposits: Government.. 2,9C4 1,555 ! 513 Member bank-reserve account. 43,524 43,520 I 53,828 All other 477 532 i 2,262 Total deposits. 45,607 | 56,603 Federal Reserve notes in actual circulation 56,789 79,498 I 87,187 Federal Reserve Bank notes in circulation—net liability. 4,220 655 8,200 Deferred ava lability items 12,919 17,492 14,2n2 All other liabilities 1,125 723 ! 498 Total liabilities. 133,055 161,416 173,393 Ratio of total reserves to deposit and Federal Reserve note liabilities combined 1 Calculated on basis of net deposits and Federal Reserve notes in circulation. 85227—22 41 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES DURING 1921. o [Amounts in thousands of dollars.] Discounted bills. Reserve percent- Discounted for member banks ages.2 Total Redis- in this district. Bills United Federal Date. ( e 2 a a + s r s n 7 e i + n ts 8 g ) ( T h 4 e o - l t 3 d a ) l . c F o o w e u t d h i n e t e t h r e r a d l b S y e c U ur . e S d . m i b n a o r o u k p g e e h t n t .1 s S e ti c t e a u s t r e . i s - re T s c e o a r s t v a h e l s. n R c o i t e r i t c s o e e u s n r l v . a in - e O W R B e a s n e k rv s. e ( T 2 o + t 3 a ) l . G o m b o l v e ig e n r a t n - - P ( e 5 r + c 4 e ) n . t Actual. ju A ste d d - .8 O H tions. 7 8 12 13 Jan. 7. 92,043 81,999 12,254 94,253 20,520 21.8 1,449 8,595 47,824 47,394 78,284 39.2 29.2 3 14. 89,152 79,108 8,580 87,688 20,280 23.1 j 1,448 8,596 46,902 44,625 76,454 39.6 32.4 g 21. 89,522 80,650 5,792 86,442 20,177 23.3 276 8,596 46,729 45,652 75,020 39.5 34.6 g 28. 88,785 80,138 2,075 82,213 20,684 25.2 ! 51 8,596 47,180 46,779 73,717 39.9 38.1 g Feb. 4. 87,510 78,893 2,000 80,893 19,923 24.6 21 8,596 49,412 47,677 72,984 41.4 39.8 £ 11. 87,014 78,376 500 78,876 18,987 24.1 42 8,596 43,924 46,259 71,802 38.7 38.3 p 18. 87,083 78,459 78,459 18,421 23.5 28 8,596 46,415 46,791 71,366 40.0 25. 82,258 73,457 73,457 15,212 20.7 205 8,596 49,636 46,237 71,223 43.3 Mar. 4. 78,584 69,988 69,988 14,295 20.4 8,596 57,784 48,735 71,341 48.5 11 74,513 65,917 65,917 14,367 21.8 8,596 58,058 47,335 70,487 50.4 18. 76,813 68,217 68,217 14,744 21.6 8,596 58,961 49,372 69,943 49.4 H Apr. 2 1 5, . 7 7 8 7 , , 4 8 3 1 2 5 6 69 9 , , 8 2 3 1 6 9 6 69 9 , , 8 2 3 1 6 9 1 1 4 3 , , 1 1 0 1 6 8 2 1 0 8. . 8 4 8 8 , , 5 59 9 6 6 5 54 6 , , 0 3 9 3 5 3 4 4 8 8 , , 1 6 6 5 5 2 6 68 9 , , 0 3 1 0 7 3 4 46 7 . . 6 8 :::: % 8. 80, 792 72,196 72,196 13,648 18.9 8,596 52,743 49,366 67,360 45.2 & 15. 80,284 71,658 71,658 13,142 18.3 8,626 48,911 46,467 66,545 43.3 .... W 22. 83,161 74,534 74,534 15,368 20.6 8,627 44,525 45,802 66,096 39.8 o May 2 4 7 . 8 8 0 1 , , 9 0 2 9 9 1 7 7 2 2 , , 4 3 9 1 3 5 2,000 7 7 2 4 , , 4 3 9 1 3 5 1 13 4 , , 9 0 8 6 0 7 1 1 8 9 . . 9 3 8 8, 6 5 1 9 4 8 4 4 4 5 , , 0 0 2 1 3 4 4 4 3 3 , , 9 7 2 7 3 2 6 65 5 , , 4 5 8 4 0 4 4 4 0 1 . . 2 2 38.4 £ 11 78,957 70,229 70,229 13,510 19.2 8,728 44,481 42,805 64,215 41.6 d J J u u n ly e 2 2 2 1 1 2 1 6 1 5 8 2 0 8 5 9 3 8 7 7 7 8 7 8 7 7 7 6 0 7 4 9 5 6 1 0 7 , , , , , , , , , , 6 7 6 4 8 8 2 8 0 3 9 1 6 1 4 6 6 0 3 2 9 0 2 0 9 1 4 6 3 1 7 6 7 6 7 6 7 7 7 7 2 5 2 9 7 0 3 0 1 3 , , , , , , , , , , 1 9 1 1 9 1 6 8 2 7 9 0 9 7 3 2 4 8 3 4 9 0 1 2 7 3 8 4 4 1 1 1 1 1 1 1 1 1 7 0 0 1 7 1 1 2 4 0 , , , , , , , , , , 5 9 3 4 4 1 3 9 8 0 1 7 2 4 8 4 4 5 3 5 5 6 7 5 0 8 4 5 7 0 8 7 7 7 8 8 8 8 8 8 1 4 7 0 8 9 4 0 4 4 , , , , , , , , , , 1 1 3 7 7 5 0 2 2 8 3 5 2 3 5 7 4 8 2 7 3 3 1 9 6 6 8 4 2 4 1 1 1 1 1 1 1 1 1 1 4 2 3 2 2 2 2 1 3 2 , , , , , , , , , , 0 1 1 0 4 9 9 9 8 5 7 7 3 0 7 6 4 8 9 4 9 5 0 5 0 7 8 4 7 4 1 1 1 1 1 1 1 1 1 1 5 4 6 4 4 7 6 5 7 5 . . . . . . . . . . 0 8 2 3 0 8 8 3 7 8 8 8 8 5 5 5 8 8 5 8 , , , , , , , , , , 7 1 6 6 1 6 6 7 6 6 1 4 7 2 1 0 4 7 7 2 0 9 1 2 3 0 9 6 3 3 4 4 4 4 4 4 4 4 4 3 3 2 1 0 2 0 2 2 1 9 , , , , , , , , , , 4 1 6 9 6 3 4 1 9 7 1 7 9 2 7 0 0 9 8 7 6 2 2 2 3 3 0 5 2 3 4 4 4 4 4 4 4 4 4 4 1 0 4 4 4 4 4 7 8 3 , , , , , , , , , , 5 5 7 1 9 0 4 3 8 7 7 6 3 2 9 2 4 4 7 4 6 3 0 0 6 2 0 7 8 3 6 6 6 6 5 5 5 5 5 5 1 3 1 9 0 9 7 8 9 8 , , , , , , , , , , 7 5 3 0 2 1 6 6 7 8 4 6 0 6 5 3 1 6 3 7 1 9 1 5 2 0 3 5 3 7 3 4 4 3 3 4 3 4 3 3 9 0 2 1 8 9 9 9 0 9 . . . . . . . . . . 6 1 2 8 3 0 0 8 3 7 3 3 2 2 2 3 3 3 2 2 9 8 0 2 7 7 0 1 2 7 . . . . . . . . . . 0 0 0 7 6 2 3 3 1 8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

27. 76,404 70,699 13,849 84,548 12,149 14 4 5,705 39,376 44,366 56,382 39.1 25.2 Aug. 3. 76,434 70,615 12,935 83,550 12,411 14 9 5,819 38,118 42,591 56,062 38.6 25.5 10. 74,910 69,170 10,036 79,206 12,113 15 3 5,740 37,777 41,769 55,577 38.8 28.5 17. 75,300 69,652 12,597 82,249 12,114 14 7 5,648 38,852 42,379 55,617 39.6 26.8 24. 73,640 67,877 17,922 85,799 12,106 14 1 5,763 39,411 42,406 55,470 40.3 22.0 31. 75,787 70,185 14,768 84,953 11,785 13.9 5,602 39,178 43,932 55,618 39.4 24.5 Sept. 7. 76,569 71,376 11,014 82,390 11,780 14 3 5,193 39,639 44,928 57,140 38.8 28.0 14. 75,233 69,988 9,060 79,048 11,450 14.5 5,245 39,096 42,371 57,172 39.3 30.2 21. 76,345 71,184 7,052 78,236 11,944 15.3 5,161 40,320 44,681 57,431 39.5 32.6 28. 74,998 69,825 5,423 75,248 11,342 15 1 5,173 40,930 44,381 56,678 40.5 35.1 Oct. 5. 75,716 70,592 70,592 10,714 15.2 5,124 43,636 46,985 57,928 41.6 11. 73,806 68,709 68,709 10,305 15 0 5,097 42,947 44,924 58,160 41 7 19. 74,212 68,967 6,000 74,967 10,243 13.7 <10 5,235 39,200 41,964 58,152 39.2 33.2 26. 76,562 71,419 4,366 75,785 10,177 13.4 no 5,133 40,464 44,820 57,779 39.4 35.2 Nov. 2. 75,449 70,137 955 71,092 9,952 14.0 no 5,302 41,543 43,617 57,691 41.0 40.1 9. 67,579 62,462 62,462 8,182 13.1 no 5,107 48,280 43,269 57,595 47 9 Dec. 3 2 2 2 1 1 7 8 0 1 3 4 6 . . . . . . . 6 6 7 6 6 6 5 6 0 7 8 7 0 0 , , , , , , , 4 1 0 1 4 5 0 1 8 6 9 9 0 6 6 3 7 2 7 4 2 6 6 6 6 5 5 5 5 3 2 2 0 5 5 , , , , , , , 3 3 0 2 9 3 7 1 3 7 4 7 6 3 6 9 8 7 7 4 8 6 6 6 6 5 5 5 3 5 2 0 5 5 2 , , , , , , , 3 2 0 9 3 3 7 1 6 7 3 4 7 3 6 4 7 9 7 8 8 8 8 9 8 8 7 8 , , , , , , , 1 0 8 0 5 8 7 0 9 4 0 2 5 4 3 9 8 5 5 2 7 1 1 1 1 1 1 1 4 2 3 4 4 5 4 . . . . . . . 1 6 9 8 4 8 5 < 4 < 4 4 4 4 1 2 2 3 7 8 8 0 2 2 2 8 9 9 5 5 5 4 4 5 4 , , , , , , , 1 2 0 6 6 0 7 0 1 7 0 7 8 5 4 1 8 7 7 5 8 4 4 4 5 5 5 5 7 5 7 3 6 6 6 , , , , , , , 8 8 1 5 2 4 3 1 1 7 0 1 8 5 2 6 2 7 4 0 3 4 4 4 4 4 4 4 3 3 5 5 7 2 4 , , , , , , , 4 3 4 8 2 0 0 9 8 6 3 0 3 7 9 6 9 6 8 1 8 5 5 5 5 5 5 5 7 6 6 7 6 7 7 , , , , , , , 6 0 3 9 4 4 4 5 0 5 5 1 5 8 6 2 2 5 8 1 2 4 4 5 5 4 5 5 4 7 1 6 7 6 4 . 7 3 3 4 8 4 0 1 No acceptances were bought from or sold to other Federal Reserve Banks. T 2 Prior to Mar. 18, net deposits, as given below were used in calculating reserve percentages: Jan. 7 $43,729,000 Feb. 4 $46,275,000 Mar. 4 $47,715,000 ^ 14 41,922,000 11 41,580,000 11 44,619,000 £ 21 43,386,000 18 44,737,000 28 44,558,000 25 43,475,000 3 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 blank in this column indicates that no accommodation was extended to or received from other Federal Reserve Banks. 4 Municipal warrants. CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

632 REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK OF MINNEAPOLIS MOVEMENT OF EARNING ASSETS DURING 1920 AND 1921 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 60 60 UNITED STATES SECURITIES 40 40 20 A 20 w w 77/ ///AY/s 0 60 60 PURCHASED BILLS 40 20 — 20 • 0 0 140 140 DISCOUNTED BILL5 120 —{SEE N B OTE BELOW)—, 120 y 100 100 V j 80 4 % i 80 60 60 ft /// / 40 •^/'/ 40 20 11 iI1 i 1 W I ' i iI 1 i * * j i / ' / // / i 20 1 H i i 0 O 140 140 TOTAL EARNING ASSETS T20 120 100 100 80 80 60 60 40 40 20 20 1920 1921 A - Paper leonred by U. 3* (Jorernment obligations discoxmted for banks in dlctriot* B - Total paper discounted for banks In district. C - Total discounted paper held. Space between lines B and C represents - wharf abore line B - paper discounted for, and - «here below line B - paper rediseormted with, other Federal Reserve banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9—MINNEAPOLIS. 633 FEDERAL RESERVE BANK OF MINNEAPOLIS DEPOSITS, F.R.NOTE CIRCULATION,CASH RESERVES AND RESERVE RATIOS, 1920 -1921 PER CENT 60 -ACTUAL RESERVE 60 4 5 0 0 'yv -A r \ r-fV f 4 5 0 0 30 v' \ A \ \ A / V \ r 30 20 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 80 80 DEPOSITS 120 120 F. R. NOTE CIRCULATION 100 100 160 160 DEPOSIT AND F.R. NOTE LIABILITIES, L, AND TOTAL RESERVES, C 140 140 120 120 100 100 80 80 60 60 40 20 20 1920 1921 Adjusted percentages are calculated after reducing or increasing reserves heid by the amount of accommodation received from or extended to other Federal Reserve banks. The deposit oumre is based on "net deposits'* up to March 11, 1921, and on '•total deposits" thereafter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.—VOLUME OF PAPER DISCOUNTED AND BOUGHT. 00 [In thousands of dollars.] Discounted paper. Purchased paper. Total discounted and purchased paper. Month. Total. S l m e i G g c e u a o n t r v t i e o e d o r n b n b s - - . y 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 . - t l A u i p v r g e a a r s p l i t c e o a u r n c . l k d - ot A h l e l r. Total. B a a a c n n c c k e e p e s t r . - s' c D h e a o x n l - l g a e r . 1921 1920 1919 o H January 81,971 33,066 401 227 7,948 40,329 81,971 61,633 27,774 o February ... 69,310 35,354 223 111 8,653 24,969 69,310 66,231 17 054 March 66,495 31,155 11 428 7,366 27,535 39 39 66,534 70,950 33,444 April... 65,172 29,581 132 211 10,442 24,806 65,172 91 804 78 345 M ay 67,366 28,882 250 12,378 25,856 67,366 89,910 85,749 June 67,996 26,138 50 223 12,664 28,921 67,996 • 96,183 54,466 July 51,520 25,247 186 8,246 17,841 51,520 75,066 39,330 August 56,610 24,670 349 5,179 26,412 56,610 81,709 45,835 September 51,864 25,093 11 199 4,841 21,720 51,864 74,257 79 550 October 56,953 19,999 75 265 10,005 26,609 56,953 83,513 111,940 November 49,221 17,960 143 9,582 21,536 j 49,221 83,226 99 456 December 46,184 17,131 104 8,962 19,987 46,184 96,970 97,291 Total, 1921 730,662 314,276 903 2,696 106,266 306,521 39 j 39 730,701 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 W O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 9 MINNEAPOLIS. 635 SCHEDULE 4.—EARNINGS AND EXPENSES. 1921 1920 1919 EABNINGS. Discounted bills $4,649,554 $4,734,259 $1,829,461 Purchased bills 13 191,862 882,564 United States securities 142,001 181,990 213,501 Transfers—net earnings 12,581 77,215 51,461 Deficient reserve penalties. 157,158 92,744 26,382 Miscellaneous 5,001 29,281 3,672 Total earnings. 4,966,311 5,307,381 3,007,041 CURRENT EXPENSES.. Salaries: Bank officers 115,499 77, 637 61,014 Clerical staff 517,448 363,724 208,171 Special officers and watchmen 23,618 10,766 8,726 All other 18,807 23,686 3,530 Governors' conferences 770 452 83 Federal Reserve Agents' conferences 403 27 311 Federal Advisory Council 908 893 1,274 Directors' meetings 11,902 6,705 6,815 Traveling expenses1 35,505 15,227 5,531 Assessments for Federal Reserve Board expenses 25,554 22, 520 20,209 Legal fees.. 11,628 3,100 3,380 Insurance ([life, fidelity, casualty, workmens' compensation, and general liability) 29,553 22,253 8,692 Banking house: Taxes and fire insurance 3,119 Light, heat, and power 1,556 Repairs and alterations 1,015 45,469 21,498 Rent, including light, heat and power, and minor alterations 44,128 Fire insurance—Furniture and equipment 112 Printing and stationery 97,072 62,488 25,228 Telephone , 7,248 2,832 2,223 Telegraph , 23,491 13,780 2,752 Security shipments 2,101 C Po u s r t r a e g n e c y a a n n d d ex c p o r in es s s h ag ip e m (o en th ts er than on money and security ship- 20,420 102,156 43,656 ments) 83,139 Furniture and equipment 53,368 100,817 23,926 Federal Reserve currency: Original cost, including shipping charges 124,584 62,627 56,273 Cost of redemption, including shipping charges 16,552 15,959 17,002 Taxes on Federal Reserve Bank note circulation 26,980 36,792 24,912 All other expenses 29,384 25,288 11,255 Total current expenses. 1,325,867 1,015,198 556,491 Current net earnings 3,640,444 4,292,183 2,450,550 PROFIT AND LOSS ACCOUNT. Earnings 4,966,311 5,307,381 3,007,041 Current expenses. 1,325,867 1,015,198 556,491 Current net earnings. 3,610,444 4,292,183 2,450,550 Additions to current net earnings: Assessment account expenses Federal Reserve Board, previously charged to profit and loss 16,607 All other 17,264 Total additions. 17,264 16,607 Deductions from current net earnings: Depreciation allowances on bank premises 5,^75 177,737 100,000 Reserve for possible losses 500,000 Assessment account expenses Federal Reserve Board. "i6,*6*67 Allother 1,279 Total deductions 506,554 177,737 116,607 Net deductions from current net earnings 489,290 161,130 116,607 Net earnings available for dividends, surplus, and franchise tax. 3,151,154 4,131,053 2,333,943 Dividends paid 211,657 195,871 180,186 Transferred to surplus account 488,530 3,410,948 2,153,757 Franchise tax paid United States Government 2,450,967 524,234 1 Other than those connected with governors' and agents' conferences and meetings of directors and of the advisory council. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

636 REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE 5.—CURRENCY RECEIPTS FROM AND PAYMENTS TO MEMBER AND NON- MEMBER BANKS. [In thousands of dollars.] Receipts. Payments, j Total receipts. Total payments. From To Month. From non- To nonmember mem- member mem- 1921 1920 1919 1921 1920 1919 banks. ber banks. ber banks. banks. January 12,853 1 4,655 1 12,854 6,431 6,992 4,656 3,316 1,834 February 8,912 4 6,261 3 8,916 3,129 3,145 6,264 5,385 2,885 March 10,954 14 7,854 53 10,968 3,843 3,043 7,907 5,871 3,607 April 11,393 13 7,320 57 11,406 3,966 4,878 7,377 5,126 3,269 May 12,643 21 6,576 3 12,664 4,075 6,899 6,579 5,314 2,342 June 11,762 47 6,513 35 11 809 4 fill 4,903 6,548 6,184 3,357 July 11,135 59 6,844 40 11,194 5.177 6,589 6,884 5,724 2,890 August 10,403 23 7,888 72 10,426 4,528 4,307 7,960 6,606 3,773 September 10,216 13 9,275 201 10,229 4,900 3,362 9,476 11,355 8,227 October 10,493 8 9,329 207 10,501 4,845 4,855 9,536 7,433 7,010 November 10,753 28 7,412 110 10,781 7,535 4,258 7,522 7,381 5,949 December 11,273 19 9,369 238 11,292 11,820 4,116 9,607 9,301 7,683 Total, 1921.. 132,790 250 89,296 1,020 133,040 90,316 1920.. 64,332 528 78,616 380 64 860 78 996 1919 56 863 484 52,451 375 57,347 52 826 SCHEDULE 6.—OPERATIONS OP FEDERAL RESERVE CLEARING SYSTEM. [Figures include cash items only.] [Numbers in thousands; amounts in thousands of dollars.] I Items drawn on banks in own district. Items drawn on Period. L R o e c s b e a r r t a e v n d e c h i B n a c n F it k e i e d s a e . n r d al B L F a e o n d c k e a t r a c e a n i d l t d i e R o s b e u . r s t a s e n i r d v c e e h U T n r i e te a d su S re t r a t o e f s. N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. Jan. 1-15 . 126 61,784 757 48,240 22 2,626 Jan. 16-Feb. 15 259 108,682 1,331 82, 782 30 4,391 Feb. 16-Mar. 15 275 114,978 1,412 89,936 27 5,962 Mar. 16-Apr. 15 134,650 1,639 100,081 54 6,477 -A pr. 16-May 15 272 110,900 1,457 85,260 62 5,339 May 16-June 15 301 118,711 1,617 89,805 47 4, 527 June 16-July 15. 269 119,198 1,588 88,810 58 4,374 July 16- \ug. 15 266 118,483 1,485 84,855 41 4,556 Aug. 16-Sept. 15 264 124,321 1,568 89,813 38 4,585 Sept. 16-Oct. 15 276 141, 270 1,676 100,599 51 5,595 Oct. 16-Nov. 15 258 134,206 1,675 100,443 50 5,138 Nov. 16-Dec. 15 267 130,400 1,707 95,942 38 14,025 Dec. 16-Dec. 31 135 62,222 823 45,204 26 7,252 Total, 1921 3,260 1,479,805 18,735 1,101,770 544 74,847 1920 2,902 1,914,838 17,240 1,438,117 373 63,953 Items forwarded R t e o s e o r t v h e e r B F a e n d k e s r a a l nd Total number.1 Total amount.1 their branches. Period. N b u e m r. - Amount. 1921 1920 1921 1920 Jan. 1-15 54 15,853 959 580 128,503 130,057 Jan. 16-Feb. 15 93 28,133 1,713 1,176 22Q 988 243,952 Feb. 16-Mar. 15 81 23,115 1,795 1,386 233,991 315,082 Mar. 16-Apr. 15 91 21,191 2,076 1,632 262,399 357,028 .Apr. 16-May 15 80 17,966 1,871 1,711 219,465 322,492 May 16-June 15 89 20,221 2054 1,845 233,264 332,661 June 16-July 15.. . . .. 89 19,693 2,004 1,765 232,075 319,528 July 16-Aug 15 94 18,989 1886 1,827 226,883 311,753 Aug. 16-Sept. 15 92 20,520 1,962 i 1,990 239,239 336,079 Sept. 16-Oct. 15 87 20,725 2,090 2,165 268,189 389,749 Oct. 16-Nov 15 87 21,743 2,070 2,272 261,530 373,984 Nov. 16-Dec. 15 91 21,897 2,103 , 2,145 262,264 324,490 Dec. 16-Dec. 31 45 9,649 1,029 1,095 124,327 152,003 Total, 1921 1,073 259, 695 23,612 2 916,117 1920 1,074 491,950 '2i,*589* 3,908,858 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. 10—KANSAS CITY. ASA E. RAMSAY, Chairman and Federal Reserve Agent. GENERAL BUSINESS CONDITIONS. A review of conditions of industry, trade, and finance in the Tenth Federal Reserve District during 1921 reflects slow but steady and substantial improvement of conditions which prevailed in the closing months of 1920. The States of this district being largely devoted to live-stock and agricultural production, it naturally followed that progress toward complete restoration of normal conditions was by no means rapid, these basic industries being handicapped by an enormous shrinkage in market values, such as to impair the purchasing and debt-paying power of farmers and stockmen and depress business in general. Other important factors in retarding complete recovery were: Failure to bring about a proper coordination and mutual relationship of prices, slowness of readjustment of wage scales and freight tariffs, and an unprecedented world-wide depression resulting from slow recuperation from the shock of war. MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES DURING THE YEAR 1921. The holdings of discounted paper showed a continued downward trend for the first eight months of the year. On January 7 the bank held $113,187,000, and on September 7, $64,035,000, a decrease of $49,152,000 for that period. During the remainder of the year the loans slightly increased, and on December 28 stood at $67,717,000. In the first Friday statement of the year the bank reported rediscounts with other Federal Reserve Banks $22,982,000; following Friday, $13,577,000; and on the third Friday, January 21, $5,553,000, after which date the bank's weekly statement did not show any rediscounts throughout the year. At the beginning of the year bills discounted, secured by United States Government obligations, stood at $43,025,000, or 31.6 per cent of the total loans. Liquidation continued and on December 28 this class of paper had decreased to $15,741,000, or 23.2 per cent of the total loans. The relative proportion of this class of paper to al] loans, therefore, was 8.4 per cent less than on January 7, 1921. The amount of bills bought in open market ranged from slightly over $2,000,000 at the beginning of the year to a very nominal amount in midsummer, and increased during the later months to approximately $1,500,000. The amount of United States securities held gradually declined during the year from $21,688,000 to $14,203,000. 637 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

638 REPORT OF THE FEDERAL RESERVE BOARD. Total cash reserves, commencing the year at approximately $78,000,000, fluctuated between the high point, $90,236,000, reached on August 17, and the lowest figures of the year, $67,354,000, reported on December 14. The amount of total deposits varied from $86,308,000, reported on March 18, to $65,557,000 on October 5. The usual contraction of Federal Reserve note circulation following the first of the year continued practically uninterrupted during all of the }^ear. A decline was reported in the weekly statement from $109,720,000 on January 7 to $69,667,000 on December 28, the low amount reported being $68,499,000 on December 7. A reserve of 40 per cent was shown in the January 28 weekly report, the actual reserve being the same as the adjusted reserve, due to the fact that all rediscounts with other Federal Reserve Banks had been eliminated. From that time on there was almost a constant upward trend in the percentage of reserve until August 24, when the high point was reached—60.8 per cent. The following weekly statements show a decline in reserves to 48.4 per cent, as reported on November 2. The year closed with a percentage of 53.3. Total earning assets steadily decreased from $137,026,000 on January 7 to $83,470,000 on December 28. The movement of principal asset and liability items, as reported in the weekly statements during 1921, is shown in Schedule No. 2. DISCOUNT AND INVESTMENT TRANSACTIONS. During the year just closed 920 banks out of a total membership of 1,103 were accommodated with loans aggregating $944,074,132.49, as against accommodations extended 826 member banks of a total membership of 1,087, aggregating $1,667,943,229.49 during the year 1920. The number of discount transactions, however, for 1921 almost equaled that of the previous year, the number of notes discounted being 110,067, as compared with 119,791 for the year 1920. The average amount of paper under discount was $84,660,340. Bankers' acceptances purchased in open market and acquired from other Federal Reserve Banks totaled $5,557,792, against $22,222,971.18 for 1920. The total of United States securities purchased during 1921 was $9,949,500; the amount of sales and redemptions, $17,384,500; whereas in 1920 purchases amounted to $128,078,650 (which amount includes one-day special certificates of indebtedness) and sales and redemptions to $130,325,050. The bank's average holdings of United States securities for the year was $17,727,727. CHANGES IN DISCOUNT RATES. At the close of 1920 the discount rates on member bank notes secured by United States war obligations ranged from 5 to 6 per cent. Our normal rate on other eligible paper of all maturities was 6 per cent. A graduated progressive rate, applied to loans made to member banks borrowing in excess of their basic lines, was suspended on August 1, 1921. On November 2, 1921, the rate for all classes of paper was reduced to 5 per cent. No other changes of rates were made during the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10 KANSAS CITY. 639 FEDERAL RESERVE NOTES. The contraction in Federal Reserve note circulation, which usually sets in in January and reaches the low point by midsummer, continued throughout the entire year. On January 1, 1921, there were in circulation $111,578,275 of -Federal Reserve notes, whereas on December 31, 1921, the amount was only $69,044,430, a decrease of $42,533,845, or 38.1 per cent. This reduction was not affected by the circulation of Federal Reserve Bank notes, which also decreased from $14,202,000 to $10,614,500. During the year the Federal Reserve Agent received from the Comptroller of the Currency Federal Reserve notes aggregating $39,220,000, part of which amount was represented by a transfer of the stock of currency held by the subtreasury at St. Louis, now discontinued. The agent issued to the Federal Reserve Bank during 1921, against the pledge of gold and eligible paper, $36,730,000 in Federal Reserve notes, as compared with $72,570,000 issued in 1920. CLEARING AND COLLECTION OPERATIONS. The total number of items handled by the head office and branches during the year 1921 exceeded the number of items handled the previous year, being 56,418,000, as against 53,168,000; but the items amounted to only $8,496,093,000, as against $12,024,224,000 for the year 1920. The average number of items handled daily during 1921 was 184,977 and the average daily amount $27,856,043. An increasing number of member banks used the direct sending privilege, and the number of items thus forwarded direct are not included in the clearing transactions referred to. The volume of business transacted through the city and country collection department materially increased during 1921. At the head office alone the collections handled amounted to over $230,- 000,000, as compared with $93,700,000 for 1920. Member banks are availing themselves more freely of our leasedwire facilities. The wire transfer division handled a daily average of 200 wire transfers, representing approximately $9,000,000, an increase of about 100 per cent over 1920. This service was rendered member banks without cost to them. FISCAL AGENCY OPERATIONS. Fiscal agency operations consisted principally of sales of United States certificates of indebtedness, Treasury notes, and war savings certificates, and the exchange and transfer of bonds and notes. These transactions involved the handling of securities with a total value of $2,330,596,600.05, as against $2,532,977,328.61 in 1920. There were 16 issues of certificates of indebtedness and two issues of Treasury notes offered the public during the }rear, the longest term of certificates being for one }7ear, and the Treasury notes maturing in three years. Sales of war savings securities aggregated only $301,791.81, as against $929,745.21 during 1920. These figures, however, do not represent a true comparison of the work of the organization during the two years, as most of its attention was, in 1921, directed to sales through post offices of the district and not confined to banks and trust companies to such an extent as during 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

640 REPORT OF THE FEDERAL, RESERVE BOARD. During the year temporary bonds received in exchange for permanent bonds amounted to $148,294,550, and permanent bonds delivered $163,350,750. The excess of permanent bonds delivered over temporary bonds received was caused by an accumulation of temporary fourth loan bonds at the close of the year 1920. In these transactions there was a material trend from smaller to larger denominations. The demand for larger bonds was more pronounced in denominational exchanges, as during the year 187,543 were exchanged for only 23,587 bonds. The volume of transactions handled by the Government teller's division, which includes all transactions affecting the United States Treasurer's general account, involving the redemption and payment of Government coupons and warrants, war savings securities, redemption of certificates of indebtedness, and receipts of deposits from Government agencies, was less than the volume of 1920 transactions CURRENCY AND COIN TRANSACTIONS. The practice of absorbing the shipping cost of currency to member banks and currency forwarded by member banks to this bank was continued during the year. The amount of currency shipments was $320,000,000, an increase of $60,000,000 over 1920; and the amount received was $322,000,000, an increase of $63,000,000. During 1921 coin deliveries amounted to $9,000,000 and coin shipments $10,600,000, as against deliveries of $1,180,000 and receipts of $2,200,000 for 1920. OPERATION OF BRANCHES. Omaha branch.— The amount of accommodations granted by the Omaha branch to the member banks in its zone through the rediscounting of paper continued in excess of the reserve deposits maintained; consequently the branch books showed an indebtedness to the parent bank throughout the entire year, the amount of which varied from $1,066,934 to $19,242,566, and the daily average was $8,408,270. The average daily amount of paper held by the branch, however, during 1921 was $21,434,000, as compared with $33,275,000 during the previous year. The volume of business transacted in all other departments of the branch showed a material increase for the year. For the first six months the Omaha branch handled items drawn on all banks of the zone. Following a change in policy effective July 1, 1921, 172 banks located in Nebraska and 10 banks in Wyoming were placed on a nonpar list. The branch was authorized by the Treasury Department to perform subtreasury functions, beginning October 29, 1921. Denver branch.—The volume of business transacted at the Denver branch during the year 1921 showed an increase in all departments excepting the discount, in which department there was a slight decrease in the number of rediscounts handled. It became necessary during the year to materially increase the number of employees and to provide for additional workroom space. On October 15, 1921, the propert}^ at the corner of Eighteenth and Curtis Streets was purchased, on which it is proposed to build a permanent building for the branch, in order to provide ample working Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10 KANSAS CITY. 641 facilities and a modern vault equipment. This property has a frontage of 207.09 feet on Curtis Street and 125 feet on Eighteenth Street. OMaTioma City branch.—This branch was established on August 2, 1920, and its transactions were at first limited to the clearing of checks and collection of items. On account of inadequate facilities, the opening of its currency department was delayed until December 1, 1920. On February 15 the branch began, in a limited way, the handling of deposits for the account of the Treasurer of the United States and to make disbursements for his account. On June 1, 1921, member banks were given the privilege of forwarding discounts direct to the Oklahoma City branch for immediate credit, the offerings to be forwarded to the head office for final approval. Out of a total membership of 356 in the Oklahoma zone, 151 members elected to conduct discount transactions through the branch. On July 26, 1921, with the approval of the Federal Reserve Board, a lot 75 by 140 feet, at the corner of Harvey and Third Streets, was purchased, on which is contemplated the erection of a building for the branch bank. MOVEMENT OF MEMBERSHIP. On January 1, 1921, the Federal Reserve Bank of Kansas City had a membership of 1,087 banks, consisting of 1,024 national banks and 63 State banks and trust companies. During the year there was a net increase of 16 members, making a total membership of 1,103, of which 1,057 are national banks and 46 State banks and trust companies. Only two State bank members were added and there were 19 State bank withdrawals—2 from Kansas, 7 from Nebraska, and 10 from Oklahoma. The movement of membership in Oklahoma was rather unusual. The Federal Reserve Board canceled the membership of the Bank of Goltry, which bank was afterwards closed by the State banking department; 2 State banks voluntarily withdrew from the system; the Guaranty State Bank, Okmulgee, consolidated with the Bank of Commerce, Okmulgee (a nonmember); and 6 State bank members converted into national banks. FINANCIAL RESULTS OF OPERATION. The gross earnings from operations for the year were $5,712,858.33, expenses $2,411,078.94, leaving net earnings of $3,301,779.39. Adding miscellaneous earnings of $42,430.75, which amount includes appreciation of United States bonds, and deducting a reserve for possible losses of $200,000, and depreciation on bank buildings $88,114.55, the net profits amounted to $3,056,095.59, which were distributed as follows: Semiannual dividend No. 14 to June 30, 1921 $133, 787. 20 Semiannual dividend No. 15 to Dec. 31, 1921 134, 832. 58 Transferred to surplus accounts 486, 917. 57 Paid to United States Government as 1921 franchise tax 2, 300, 558. 24 Total 3, 056,095. 59 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

642 REPORT OF THE FEDERAL RESERVE BOARD. The first franchise tax paid by this bank to the United States Government was for the year 1920 and amounted to $2,240,228.21, which amount, added to the franchise tax paid for the year 1921, makes a total paid the Government of $4,540,786.45. In addition to paying the required dividends of $1,495,986.74, covering the period November 16, 1914, to December 31, 1921, the bank has accumulated a normal surplus fund of $9,141,200 and a supersurplus fund of $504,531.81. Of the total gross earnings of the head office and branches, $5,134,004 represented revenue derived from bills discounted, $49,148 from discounts on bills purchased, $382,855 interest on United States securities, $126,434 penalties on deficient reserves, and $20,417 miscellaneous. A comparative detail statement of income and expenditures for the years 1919, 1920, and 1921, is given in Schedule No. 4. CHANGES IN CONDITION OF MEMBER BANKS. During the year all member banks located in reserve cities of this district continued reporting weekly figures of principal asset and liability items, which figures were published by the Federal Reserve Board, together with figures from member banks in selected cities of the other districts. Total loans and investments of member banks in selected cities showed a steady decline from $568,258,000 on January 7 to $516,105,000 on December 28, the low point being reached on October 12, $506,803,000. The total decrease for the year of $52,153,000 is made up of decreases in the following items: Loans and discounts (exclusive of rediscounts): Secured by United States Government obligations $5, 578,000 Secured by stocks and bonds (other than United States) 10,547,000 All others 24, 269,000 $40,394, 000 Investment: United States bonds $3, 563,000 United States Victory notes 799,000 United States certificates of indebtedness and Treasury notes 422,000 Other bonds, stocks, and securities 6, 975, 000 11, 759,000 52,153,000 Deposits on January 7 totaled $498,809,000. For nine weeks following, total deposits slightly increased, but during the remainder of the year a decline was noted, the low point being $458,011,000 on October 26. At the close of the year deposits amounted to $484,134,000, a decrease of $14,675,000, represented by the difference between a decrease of $26,790,000 in net demand deposits upon which reserve is computed and increases of $8,172,000 and $3,943,000 in time and government deposits, respectively. The amount of reserve balances with Federal Reserve Bank gradually decreased from $49,930,000 on January 7 to $39,066,000 on December 28. Steady liquidation is reflected in the figures representing member bank notes and bills discounted. The collateral for member bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10 KANSAS CITY. 643 notes consists almost entirely of United States securities. The total of member bank notes and bills discounted on January 7, 1921, was $92,293,000, which amount was steadily reduced, and on December 28 the 80 banks reported only $35,794,000. SCHEDULE 1.—COMPARATIVE STATEMENT OF CONDITION. [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, 1921. 1920. 1919. RESOURCES. Gold and gold certificates 2,517 4,026 191 Gold settlement fund—Federal Reserve Board 33,764 23,957 25,933 Gold with foreign agencies 158 6,303 Total gold held by bank 36,281 28,141 32,427 Gold with Federal Reserve Agent 28,042 40,769 39,409 Gold redemption fund 3,474 5,255 4,375 Total gold reserves 67,797 74,165 76,211 Legal tender notes, silver, etc 6j 861 2,332 365 Total reserves 74,658 76,497 76,576 Bills discounted: Secured by United States Government obligations 17,839 29,707 45,290 All other 52,140 80,634 48,090 Bills bousht in open market 1,337 2,171 18,692 Total bills on hand 71,316 112,512 112,072 United States bonds and notes 8,868 8,868 8,868 United States certificates of indebtedness: One-year certificates (Pittman Act) 5,320 12,820 12,820 All other 66 1 2,247 MuniciDal warrants 150 Total earning assets 85,720 134,201 136,007 Bank premises. . 4,400 1,041 462 5 per cent redemption fund against Federal Reserve Bank notes 889 916 958 Uncollected items 40,926 55,652 83,429 All other resources 518 350 660 Total resources 207,111 268,657 298,092 LIABILITIES. Capital paid in 4,570 4,455 4,016 Surplus 9.646 9,159 6,116 Deposits: Government 6,053 4,909 1,790 Member bank—reserve account 71,997 74,318 90,406 All other 758 678 3,724 Total deposits 78,808 79,905 95,920 Federal Reserve notes in actual circulation 69,044 111,578 104,089 Federal Reserve Bank notes in circulation—net liability 10,615 14,221 19,533 Deferred availability items 33,532 47,631 67,758 All other liabilities/. 896 1,708 660 Total liabilities 207,111 268,657 298,092 Ratio of total reserves to deposit and Federal Reserve note liabilities combined 50.5 141.7 141.5 i Calculated on basis of net deposits and Federal Reserve notes in circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES DURING J921. [Amounts in thousands of dollars.] Discounted bills. Reserve percent- Discounted for member banks Date. ( e 2 a T a + s r o s n 7 t e i + a n t l s 8 g ) ( T h 4 e o - l t 3 d a ) l . c R F B R o o w e e a u e t d s h n i n d e e t e k t i r h r e s v r s a - d e . l ( T 2 o + t 3 a ) l . in t b h S G o y i m e b s o c l v U e u d i e g n r i . r e a s t S n t d - r - . ict P . ( e 5 r - c 4 e ) n . t m i b n B a o r u o i k l p g l e e s h t n t .1 i U s S e t n i t c e a i u t s t e r e . i d s - re T s c e a o r s t v a h e l s. de T p o o t s a i l ts. n R F c o i t e e r i t d c s o e e u e n s r l r v . a a in - e l Actual. ju A ste d d - .3 o w tions. 10 Jan. 7.. 137,026 113,187 22,982 136,169 43,025 31.6 2,151 21,688 78,093 85,235 109,720 41.6 29.3 -3 14.. 131,805 108,614 13,577 122,191 36,870 30.2 1,503 21,688 75,298 80,617 106,912 41.8 34.2 g 21.. 134,771 111,194 5,553 116,747 37,572 32.2 1,888 21,689 74,424 81,387 105,388 40.8 37.7 § 28.. 131,738 108,693 108,693 35,830 33.0 1,357 21,688 70,449 76,796 103,288 40.0 W Feb. 4.. 133,398 110,562 110,562 38,351 34.7 1,148 21,688 74,285 83,973 102,254 40.9 > 11. 123,502 100,951 100,951 33,841 33.5 863 21,688 78,319 79,210 100,984 44.3 £H 18. 123,900 101,653 101,653 37,789 37.2 559 21,688 80,029 81,540 100,406 44.8 25. 122,460 100,235 100,235 37,463 37.4 537 21,688 84,966 83,159 100,195 46.5 w Mar. 4. 118,516 98,872 98,872 36,784 37.2 456 19,188 85,556 83,453 100,352 47.7 1 1 1 8 . . 1 1 1 1 6 9 , , 4 4 0 9 7 9 9 9 6 9 , , 8 7 8 1 7 9 9 99 6 , , 7 8 1 8 9 7 3 3 3 5 , , 6 17 1 8 1 3 3 4 5 . . 7 3 3 2 3 3 2 9 1 1 9 9 , , 1 5 8 4 8 1 7 8 9 7 , ,7 1 9 7 5 4 8 8 5 6 , , 6 3 4 0 7 8 9 96 8 , , 9 5 7 7 7 8 4 4 8 3 . . 9 2 H 25. 124,159 104,625 104,625 36,665 35.0 205 19,329 75,157 83,652 95,130 42.0 ::::: ? Apr. 1. 117,773 98,400 98,400 34,147 34.7 185 19,188 74,756 76,978 93,325 43.9 118,991 99,633 99,633 34,738 34.9 170 19,188 73,878 80,015 92,460 42.8 15. 115,246 95,889 95,889 33,450 34.9 69 19,288 73,686 77,808 90,849 43.7 & 22. 116,319 97,106 97,106 32,804 33.8 25 19,188 70,612 76,809 90,019 42.3 May 2 4 7. . 1 1 1 0 3 9 , , 6 2 5 9 6 3 9 9 4 0 , , 4 0 4 4 3 2 9 9 4 0 , , 4 0 4 4 3 2 3 3 2 0 , , 3 4 4 5 4 7 3 3 4 3 . . 2 8 2 2 5 5 1 1 9 9 . , 1 2 8 2 8 6 7 7 1 5 , , 3 6 0 2 5 2 7 7 1 2 , , 4 4 9 4 0 2 8 8 9 8 , , 2 5 8 2 6 7 4 4 4 7 . . 4 0 o 11. 102,093 82,870 82,870 24,955 30.1 25 19,198 80,915 73,358 86,784 50.5 > 18. 100,508 81,282 81,282 24,311 29.9 25 19,201 80,217 72,324 85,368 50.9 25. 102,243 82,898 82,898 24,979 30.1 25 19,320 75,266 72,620 83,447 48.2 June 1. 100,793 82,493 82,493 24,421 29.6 25 18,275 76,371 71,901 82,784 49.4 98,115 80,817 80,817 23,644 29.3 25 17,273 74,962 72,348 81,532 48.7 15. 94,130 76,838 76,838 22,580 29.4 25 17,267 78,623 79,594 80,216 49.2 22. 97,320 80,031 80,031 24,102 30.1 25 17,264 74,686 71,557 79,195 49.5 29. 97,007 79,798 79,798 25,873 32.4 20 17.189 75,650 71,389 78,459 50.5 July 96,734 79,500 79,500 24,181 30.4 20 17,214 78,694 74,599 78,633 51.4 95,555 78,346 78,346 24,020 30.7 20 17,189 75,325 69,491 77,347 51.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Aug. OO lo -3 Sept -22- 20 94,936 76,752 76,752 22,675 29.5 959 17,225 76,286 70,142 76,363 52.1 27 93,236 75,074 75,074 21,962 29.3 959 17,203 77,619 69,768 75,431 53.5 3 89,389 71,210 71,210 21,019 29.5 959 17,220 86,640 75,350 75,600 57.4 10 .. 84,397 66.194 66.194 16,960 25.6 1,001 17,202 85,751 69,636 75,698 59.0 17 84,401 66.195 66.195 18,056 27.3 1,018 17,188 90,236 75,786 75,581 59.6 24 82 336 64,130 64,130 17,470 27.2 1,018 17,188 89,111 71,895 74,637 60.8 31 82,637 65,431 65,431 18,485 28.3 1,018 16,188 88,591 73,549 74,408 59.9 7 . 81,141 64,035 64,035 18,386 28.7 918 16,188 89,592 73,977 75,063 60.1 14 82 567 65,919 65,919 18,207 27.6 460 16,188 86,418 75,725 74,427 57.6 21 92,590 74,036 74,036 22,754 30.7 384 18,170 75,420 71,303 74,379 51.8 28 91,798 73,385 73,385 19,250 26.2 394 18,019 72,028 66,834 73,364 51.4 Oct. 5 88,557 72,789 72,789 19,189 26.4 520 15,248 74,125 65,557 73,704 53.2 1 11 87,837 72,350 72,350 18,461 25.5 769 14,718 76,015 69,288 73,248 53.3 19 . 87,605 72,258 72,258 17,707 24.5 1,143 14.204 75,219 67,623 72,600 53.6 to 26 90,445 74,756 74,756 18,867 25.2 1,488 14,201 71,018 68,630 71,356 50.7 Nov. 2 91,496 75,570 75,570 18,425 24.4 1,626 14,300 67,842 68,670 70,804 48.6 9 4 95 091 78,687 78,687 18,571 23.6 1,587 14,211 67,635 69,870 69,881 48.4 16 92,048 76,214 76,214 18,119 23.8 1,627 14,207 72,177 71,184 69,663 51.2 Dec. 2 3 2 2 1 7 8 3 1 0 4 ... 4 4 4 4 9 9 8 9 8 9 3 4 8 1 3 1 , , , , , 9 5 9 1 4 7 1 2 0 7 7 5 1 2 6 9 0 8 7 7 7 6 7 7 8 8 3 7 5 5 , , , , , , 1 6 0 7 4 8 5 8 5 1 9 7 0 8 0 7 0 7 7 7 7 7 6 7 8 3 5 7 8 5 , , , , , , 1 0 8 7 6 4 5 5 7 1 8 9 0 0 7 7 8 0 1 1 1 1 1 1 9 9 5 8 7 9 , , , , , , 6 7 8 9 7 0 6 4 4 7 9 2 3 1 7 9 7 3 2 2 2 2 2 2 5 5 3 5 5 4 . . . . . . 1 1 2 2 2 4 1 1 1 1 1 1 , , , , , , 6 4 5 5 3 5 3 0 5 2 3 0 0 0 4 6 4 4 1 1 1 1 1 1 4 4 4 4 4 4 , , . , , , 2 2 2 2 2 2 0 0 0 0 0 0 7 3 5 4 2 5 6 6 7 7 7 7 7 7 4 1 4 0 , , , , , , 2 6 3 5 1 1 8 8 3 3 5 2 1 0 2 7 4 0 6 7 7 7 7 7 9 0 0 1 3 4 , , , , , , 5 2 7 4 0 7 3 2 8 1 0 4 3 3 4 0 4 0 6 6 6 6 6 6 8 9 9 8 9 8 , , , , , , 7 3 6 6 7 4 9 5 7 6 8 9 1 1 1 7 0 9 5 4 4 5 5 5 8 8 0 1 3 0 . . . . . . 1 6 2 3 3 4 o o H T 1 No acceptances were bought from or sold to other Federal Reserve Banks. 5 Prior to Mar. 18 net deposits, as given below, were used in calculating reserve percentages: Jan. 7 $78,053,000 Feb. 4 $79,507,000 Mar. 4 $79,027,000 14 73,329,000 11 75,620,000 11 81,107,000 21 77,211,000 18 78,428,000 28 72,660,000 25 82,360,000 xsi 3 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 > blank in this column indicates that no accommodation was extended to or received from other Federal Reserve Banks. * Includes Municipal warrants as follows: Nov. 9, $606,000; Dec. 7,14, 21, and 28, $150,000. o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

646 BEPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK OF KANSAS CITY MOVEMENT OF EARNING ASSETS DURING 1920 AND 1921 MILLIONS OF DOLLARS MILLIONS OF DOLLAR! 60 UNITEDSTATES SECURITIES 40 40 1 P i iI y Iii n 20 WA 40 PURCIHASEDBILUS 20 200 200 DISCOUNTED BILLS 180 'SEE NOTE BELOW} 180 160 140 140 120 120 100 100 80 20 180 TOTAL EARNING ASSETS 160 160 140 140 120 120 100 100 80 60 20 mi* 1921 1920 A - Paper secured by U, 3. Government obligations discounted for banks In distriot. B - Total paper disoo»mt*d for banks In distrjot, C - Total discounted paper held. Spaoe between lines B and C represents - where above line B - paper discounted for, and - where below line B - paper redisoounted with, other Federal Reserve Bank** Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10;—KANSAS CITY. 647 FEDERAL RESERVE BANK OF KANSAS CITY DEPOSITS, F. R.NOTE CIRCULATION,CASH RESERVES AND RESERVE RATIOSJ92O-1921 PER CENT PER C£N1 -/icr(//iz. RESERVE RATIOS -ADJUSTED 1 60 —^ v/ •>•«, "~"V,A, V 30 A, y i 20 1 -1 i 10 10 i i ! MILLIONS OF DOLLARS MILLIONS OF DOLLARS 150 150 100 100 50 50 0 0 200 200 ! 1 F.R.NOTE: CIRCULATION ; j 150 150 100 1 100 50 II1 1 111i i ll 1iV/A 1II i 1 I i i 1 1 i I 1 i I SO 1 DEPOSIT AND F. R.NOTE LIABILITIES, L, AND TOTAL RESERVES, C 250 200 150 100 50 1920 1921 1' Adjusted percentages are calculated after reducing or Increasing reserves held by the amount of accomajdation received from or extended to other Federal Reserve banks. The deposit curve is based on "net deposits'* up to March 21, 1921, and on "total deposits" thereafter* Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.—VOLUME OF PAPER DISCOUNTED AND BOUGHT. GO [In thousands of dollars.] Discounted paper. Purchased paper. Total discounted and purchased paper. Month. Total. | 1 ! | o S b e G l c m i o u g v r e a e e t n d i r t o n b n - y s. 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 . - l t i A u v p r g e a a - r p l s i c e t a o u r n . c l d - k All other. Total. B a a a c n n c c k e e p e s t r . - s' I ex D c o h l a l n a g r e. 1919 2 January 99,102 72, 906 667 10, 509 15,020 1,154 1,154 100, 256 118, 879 102, 388 February.. 91,429 67,496 743 ! 7,921 15, 269 91, 429 105, 856 90,691 March 110,900 76, 803 33 802 | 14, 505 18, 757 110,900 130, 593 129, 382 April 90,748 65, 347 696 i 9,512 15,193 25 25 90,773 142,204 145, 550 May 71, 982 47, 277 387 11,316 13,002 815 815 72, 797 134,426 147, 389 June 77,147 51, 469 387 10,382 14,909 20 20 77,167 144,465 137, 092 July 68, 023 45, 463 103 203 7,575 14,679 939 939 68,962 149, 917 109,923 A Se u p g t u e s m t ber. 6 59 9 , , 9 9 6 5 7 4 4 42 0 , , 1 6 5 6 9 4 10 22 5 3 3 5 9 , , 6 2 8 3 3 7 1 1 3 8 , , 5 3 4 4 4 8 2 3 4 3 8 0 2 3 4 3 8 0 6 7 0 0 , , 2 2 0 9 2 7 1 1 4 6 9 0 , , 0 9 6 6 5 2 1 14 0 0 4 , , 5 1 6 0 1 0 2 October 77,156 43, 979 66 78 12,302 20, 731 1,573 1,573 78, 729 166,047 171,179 November. 67, 468 38, 396 127 14,088 14, 857 264 264 67, 732 141,543 145,935 > December.. 60,198 38,693 150 8,839 12, 516 190 190 60,388 141,159 157,493 Total, 1921. 944,074 630,652 4,516 121, 869 186, 825 5,558 5,558 | 949,632 1920. 1,667,943 1,114, 026 369 i 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 10 KANSAS CITY. 649 SCHEDULE 4.—EARNINGS AND EXPENSES. 1921 1920 1919 Discounted bills $5,134,004 $6,441,476 $3,888,839 Purchased bills 49,148 211,975 340,875» United States securities . 382,855 505,539 405,400 Transfers—net earnings i 1,750 198,749 Deficient reserve penalties. 126,434 238,425 106,705* Miscellaneous 20,417 14,322 20,.914> Total earnings. 5,712,858 7,409,987 4,961,482; CURRENT EXPENSES. Salaries: Bank officers 160,543 i 116,274 91,60C Clerical staff 1,051,627 j 794,286 453,258 Special officers and watchmen 45,976 I 25,275 14,423; All other 55,097 i 35,694 11,698 Governors' conferences 620 | 626 498 Federal Reserve Agents' conferences 211 121 361 Federal Advisory Council 410 330 300* Directors' meetings 25,823 19,532 IB, 275. Traveling expenses 2 28,7 5 28,085 13,959> Assessments for Federal Reserve Board expenses 32,749 34,221 28,151 Legal fees 6,769 2,543 1,.825"» Insurance (life, fidelity, casualty, workmen's compensation, and general liability) 42,172 29,207 Banking house: Taxes and fire insurance 15,586 Light, heat, and power 7,781 ! A Re ll p o a t i h rs e r a nd alterations , 1 7 3 , , 0 8 ^ 5 8 4 71,743 48,520* Rent, including light, heat, and power, and minor alterations 63,964 Fire insurance—furniture and equipment 1,257 Printing and stationery 104,982 i 94,787 49,782' Telephone 10,984 ' 5,627 3,734 Telegraph 77,611 37,310 12,233- Security shipments 8,035 C Po u s rr ta e g n e c y a n an d d e c x o p i r n e s s s h a i g p e m ( e o n t t h s er than on money and security ship- 42,962 175,076 108,312' ments) 133,182 Furniture and equipment 183,223 126,7C7 54,290* Federal Reserve currency: Original cost, including shipping charges 124,491 I 97,477 131,339 Cost of redemption, including shipping charges 32,054 33,905 16,493- Taxes on Federal Reserve bank note circulation. 62,938 I 83,422 65,327 All other expenses 70,385 45,712 40,881 Total current expenses. 2,411,079 ! 1,857,960 1,186,069' Current net earnings 3,301,779 5,552,027 3,775,413 PROFIT AND LOSS ACCOUNT. Earnings 5,712,858 7,409,987 4,961,482 Current expense; 2,411,079 1,857,960 1,186,069'- Current net earnings.. 3,301,779 5,552,027 3,775,413- Additions to current net earnings: Amounts deducted from Reserve for depreciation on United States bonds 38,605 147,846 All other 3,826 1,040 103 Total additions.. 42,431 1,040 147,949 Deductions from current net earnings: Depreciation allowances on bank premises 88,114 Reserve for possible losses 200,000 Reserve for depreciation on United States bonds.. 11,579 Another Total deductions 288,114 12,386 Net deductions from current net earnings 245,683 11,346 3 147,949 Net earnings available for dividends, surplus, and franchise tax. 3,056,096 5,540,681 3,923,362 Dividends paid 268,620 257,672 228,755' Transferred to surplus account 486,918 3,042,781 3,694,607 2,300,558 2,240,228 Franchise tax paid United States Government 1 Debit. 2 Other than those connected with governors' and agents' conferences and meetings of directors and of the* advisory council. * Net addition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

650 REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE 5.—CURRENCY RECEIPTS PROM AND PAYMENTS TO MEMBER AND NON- MEMBER BANKS. [In thousands of do'lars.] Receipts. Payments. Total receipts. Total payments. Month- From To From non- To nonmember mem- member mem- 1921 1920 1919 1921 1920 1919 banks. ber banks. ber banks. banks. January 19,580 234 9, 488 83 19, 814 16,115 11,693 9, 571 9,199 2,315 February 14,618 131 10, 859 48 14, 749 9,984 7,682 10,907 12,115 4,758 March 19,727 385 10, 732 107 20,112 13,658 7, 961 10, 839 12, 235 6,367 April 17, 316 310 11, 398 69 17,626 16,167 ' 8,288 11,467 11,163 5,450 May 18, 300 189 10, 736 378 18, 489 13, 252 10, 997 11,114 11,413 6,188 June 17, 418 173 14, 046 463 17, 591 16, 087 11, 542 14, 509 12, 544 6,270 July 17, 238 149 14,046 636 17, 387 14,948 13,474 14,682 14, 275 9,173 August 16, 546 257 12, 790 711 16, 803 13,190 10, 844 13, 501 17, 553 11, 808 September 17,162 204 13,606 710 17, 366 16,445 11,765 14, 316 17,373 13,484 October 17, 545 148 12, 730 670 17, 693 17,466 14,123 13, 400 15, 046 10,729 November 18, 035 166 13,102 605 18,201 16,792 10,270 13, 707 13,417 12, 935 December 20, 434 173 15,680 780 20, 607 19, 994 14, 595 16,460 19, 516 13,691 Total, 1921.. 213,919 2,519 149, 213 5,260 216, 438 i 154.473 1920.. 182, 740 1,358 165,363 486 184, 098 165, 849 1919.. 132,433 801 102, 462 706 133,234 103,168 SCHEDULE 6.—OPERATIONS OF FEDERAL RESERVE CLEARING SYSTEM. [Figures include cash items only.] [Numbers in thousands; amounts in thousands of dollars.] Items drawn on banks in own district. Period. L an o R d c a e b t s e r e d a r n v in c e h B F c e a i d n ti e k e r s a . l B L F o a e c n d a k e t e r a d a n l d o R u e t b s s r i e a d r n e v c e o h f I U te T n m r i e t s a e d s d u r S a re w t r a n t o e f o s n . R I t t e o t h s e e e o m i r t r s v h e e b f r ' r o B a r F a w n e n c a d k h r e s d e r e s a a d . l nd cities. Num- Number. Amount. ; ber. Amount. Jan. 1-15 1,920 138,295 59 5,580 j 224 48, 092 Jan, 16-Feb. 15.... 3,663 : 237,102 113 16,397 S 420 85,657 Feb. 16-Mar. 15... 3,973 244, 483 83 14,384 ! 417 79,780 Mar. 16-Apr. 15... 4, 392 250, 810 178 17, 200 ' 429 84,183 Apr. 16-May 15... 3,803 207, 916 183 15,073 i 382 62,116 May 16-June 15... 4,125 219, 896 110 15,285 ! 410 65,940 June 16-July 15... 3,578 209,988 166 20,527 I 395 62,266 July 16-Aug. 15... 3,304 222, 214 132 18,021 ! 411 65, 854 Aug. 16-Sept. 15.. 3, 228, 797 106 16,366 ! 442 68, 096 Sept. 16-Oct. 15... 3,287 | 237, 209 172 19,856 ! 425 71, 072 Oct. 16-Nov. 15... 3,200 | 226, 844 206 24,629 ! 424 65,954 Nov. 16-Dec. 15... 3,159 209, 290 138 22,408 434 64, 423 Dec. 16-Dec. 31 1,653 107,183 94^ 13,520 I 209 31, 061 Total, 1921.. 43, 365 '277407027" 1, 740 219, 246 5,022 "8547494 1920.. 40,745 | 4, 204, 423 1,578 148, 295 4,772 1,362, 017 1919.. 22, 004 3,122, 524 1,751 166,155 2,331 1,595, 554 Total number. 1 Total amount.l Period. 1921 1920 1919 1921 1920 1919 Jan. 1-15 2,423 1,711 407,682 488, 294 326, 811 Jan. 16-Feb. 15... 4,676 3, 530 1.884 735, 750 918, 525 736, 092 Feb. 16-Mar. 15.. 4,914 4,064 1, 875 730, 447 1,103, 081 643,941 Mar. 16-Apr. 15.. 5,503 4,505 2,420 772,143 1,113,628 736,129 Apr. 16-May 15... 4,793 4,456 2,137 645,945 971,175 663, 592 May 16-June 15.. 5,161 4,155 2,184 665, 029 938,232 I 754,172 June 16-July 15.. 4,696 4,163 2,177 653, 893 984,631 I 742,659 July lG-Aug. 15.. 4,436 4, 385 2,343 694,696 979, 260 856, 735 Aug. 16-Sept. 15.. 4,450 4,889 2,569 735, 744 1, 065, 088 876, 675 Sept. 16-Oct. 15.. 4,439 4,937 2,629 748, 291 1,100, 763 885,270 Oct. 16-Nov. 15.. 4,364 4, 884 3,340 714,365 1, 011,131 934,319 Nov. 16-Dec. 15.. 4,303 4,921 3,177 653, 473 912, 362 868, 762 Dec. 16-Dec. 31... 2,260 2,568 1,964 338, 635 438, 054 480, 443 Total, 1921. 56,418 1. 8,496, 093 1920. 53,168 12, 024, 224 1919. 29, 581 9, 505,600 1 Exclusive of duplications on account of items handled by both parent bank and branch; also of 7,714 items, aggregating $4,454,760; 2,593 items, aggregating $2,567,637; and 61 items, aggregating $1,009,583 forwarded direct to drawee banks in other districts during 1921, 1920, and 1919, respectively. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11—DALLAS. WILLIAM F. RAMSEY, Chairman and Federal Reserve Agent. FINANCIAL RESULTS OF OPERATION. The decrease in amount of earning assets is reflected in the bank's gross earnings for 1921, which were $4,243,648, or 13.5 per cent less than for 1920. Net earnings in 1921 were $2,382,792, as compared with $3,354,675 in 1920, a decrease of $971,883, or 29 per cent. The ratio of net earnings to paid-in capital in 1921 averaged 56.7 per cent, as compared with 89.2 per cent in 1920. The average rate on bills discounted in 1921 was 6.25 per cent, compared with 5.67 in 1920. The decreased volume of paper handled more than offset the increase in the average rate. While the volume of business handled was much smaller than in 1920, and the bank's earnings so reflect, the cost of operation was not reduced proportionately. It was not possible to make any appreciable reduction in the wage scale, although the clerical force was slightly cut during the latter half of the year. At its meeting in July the directors authorized the absorption by the bank of the expense of fiscal agency operations for the year ending June 30, 1922. These expenses have approximated $75,000 for the past year. On June 30 a dividend at the rate of 6 per cent per annum, covering the bank's operations for the first six months of the year, amounting to $124,618.69, was paid. At the same time $1,079,933 was added to surplus. On December 31 another dividend at the rate of 6 per cent per annum, covering the operating period from July 1 to December 31, amounting to $127,592.24, was paid. The balance in profit and loss account of $281,419 was added to surplus, making the surplus account on December 31, 1921, $7,394,097, or 88 per cent of the bank's subscribed capital. Schedule 4 shows comparative statement of earnings and expenses for the years 1919, 1920, and 1921. Total earning assets on December 31, 1921, were $55,291,598, as compared with' $83,222,000 on December 31, 1920, $77,768,000 on December 31, 1919, and $56,363,000 on December 31, 1918. The capital of the bank on December 31, 1921, was $4,203,200, as compared with $4,098,000 on December 31, 1920, $3,420,000 on December 31, 1919, and $3,154,300 on December 31, 1918. Total resources on December 31, 1921, were $121,665,000, as compared with $173,998,000 on December 31, 1920, $199,821,000 on December 31, 1919, and $119,830,000 on December 31. 1918. Schedule 1 shows comparative balance sheet as of December 31, 1919, 1920, and 1921. 651 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

652 REPORT OF THE FEDERAL RESERVE BOARD. DISCOUNT OPERATIONS. The unusual demands for credit by member banks have continued in the past year, and the rediscount facility, the most important of the services rendered by the bank, has been sought by 82 per cent of the members. Of a total membership of 861 on December 31, 1921, 704 were accommodated during the year. The volume of paper handled in 1921 was 40 per cent less than in 1920, but the number of banks accommodated increased 0.3 per cent over 1920; and the number of applications increased 58 per cent. Of the total paper rediscounted, the borrowings by States were as follows: State. N of u b m a b n e k r s Amount. P o e f r t o c t e a n l t . served. Arizona 10 $6,473,530 0.8 Louisiana 17 26,251,401 3.4 New Mexico 39 21,494,704 2.8 Oklahoma 31 22,941,488 3.0 Texas 607 694,835,365 90.0 The largest amount of paper was handled in the month of January and the smallest in December. The ratio of rediscounts of borrowing banks to their basic line, or amount contributed to the working assets of this bank on December 31, was 142 per cent. In other words, the borrowings of member banks exceeded, by the percentage shown, their contribution to the working assets of the Federal Reserve Bank of Dallas, or what is termed the " basic line,;; which is arrived at by deducting 35 per cent from the member's average reserve deposit, adding to this the amount contributed to the capital stock of the Federal Reserve Bank, and multiplying by 2^, which is the lending ability of the Federal Reserve Bank. By reason of these excess borrowings, the bank was obliged to rediscount with other Federal Reserve Banks until December 15. The maximum of $27,275,000 was reached on January 13, 1921. In 1920 the maximum of rediscounts with other Federal Reserve Banks was $39,097,000 on September 10, and the minimum $1,000,000 on May 12. Of the total paper discounted in 1921, $454,685,000, or'58.8 per cent, consisted of notes secured by Government obligations, as compared with $999,942,925, or 78 per cent, of the total in 1920. The volume of this paper has shown a steady decrease throughout the year on account of the reduced holdings of Government securities by member banks. Early in the year the rate on Governmentsecured paper was slightly increased, and the loan value of Liberty bonds was fixed at 85 per cent and Victory notes at 95 per cent of their face value. Bonds in large blocks have been sold in the East and to investors in this district. As these sales were by the banks which had been under the necessity of borrowing on the securities, there was a corresponding decrease in the volume of paper discounted secured by Government obligations. Holdings of Treasury certificates by member banks were less than in 1920. The largest sub- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. U DALLAS. 653 scriptions to new issues were from individuals, firms, and corporations, or from banks to supply their customers, and not for their own account. BANKERS' ACCEPTANCES. Purchases of bankers' acceptances during the year aggregated $694,022, as compared with $8,348,277 in 1920. All the purchases of this class of paper in 1921 were from the accepting banks in this district. Conditions in the district in 1921 were not favorable to the growth of acceptance credits, and the amount of new bills created has been rather limited. This is partially attributable to the depressed market for commodities as well as the decreased and unsettled export trade. As the fall season opened and the necessity for financing cotton and other commodities began, there was a noticeable increase in the acceptances created in this district, and the volume outstanding during the closing months of the year was heavier than in earlier months. The demands on this bank for credit were so heavy, and its available funds so actively employed in taking care of the indispensable needs of member banks, that our purchases of acceptances have been very small; in fact, the bank has not entered the open market to purchase bills as it has previously done in seasons when it held surplus funds. There have been some inquiries and demand for acceptances by banks, individuals, and firms, with funds seeking investment, and it is believed there is an increasing appreciation of the desirability of such paper for temporary employment of idle funds. During the year 1 bank was granted authority to accept UD to 100 per cent of its capital and surplus, making a total of 28 which had received this permission on December 31, 1921. CLEARING OPERATIONS. The annual report for the year ending December 31, 1920, touched upon the plan adopted March 1, 1920, whereby the aggregate of our daily transit items sent to each bank would be handled as a separate transaction and charged to the reserve account of the member bank after receipt of the cash letter had been acknowledged. Effective March 10, 1921, this plan was discontinued, and our daily transit sendings to each bank, both member and nonmember, are now forwarded for collection, and remittance of proceeds, in accordance with method outlined in our circular No. 3, series of 1921. Despite the continued heavy volume of checks cleared through our transit department during the year just closed, the number of employees required for this work has been considerably reduced. Improved methods and increased efficiency, following the housing of the department in our new building, are the most important factors contributing to the decreased cost of clearing operations. The reserve city clearing house continues to function satisfactorily, and has come to be regarded as almost indispensable for the settling of balances between the members thereof, but its benefits accrue not alone to the comparatively few banks comprising this association. Country banks in increasing numbers are availing themselves of the facilities offered by the reserve city clearing house, and recognize it as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

654 REPORT OF THE FEDERAL RESERVE BOARD. a convenient medium through which to convert their drafts into available funds immediately upon receipt by this.institution. Many banks, nonmember and member, are settling for our transit sendings with exchange payable through the reserve city clearing house. This and other factors have contributed toward the reduction in the mail collection time schedule for this district. Direct routing of checks is playing an important role in clearing operations. When it is desirable, in order to save time, member banks may arrange, by application to the Federal Reserve Bank of Dallas, for direct routing of their 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. One hundred and fifteen member banks in the Eleventh district have been accorded the direct routing privilege, thereby effecting a saving of the time required for the items to reach the head office or branch to which they are attached. Direct routing eliminates unnecessary handling, and provides the means for the quickest possible collection and credit of checks. The privilege of direct sending is not restricted to member banks of this district, as many banks in other Federal Reserve districts are also routing checks direct to the head office and branches of this institution, and the saving in time and expense is quite an item. As far as it is possible to do so, the time collection schedule published by this institution has been perfected to a degree where it coincides almost entirely with the actual time required to collect the checks. Inconsistencies have been eliminated whenever found, and the schedule now in effect varies very little from actual transit time. The slight variance is attributable almost entirely to delayed trains and certain other causes over which we can not exercise control. Prior to 1921 comparatively few banks availed themselves of the facilities for quick collection of so-called noncash items, extended through our collection department. The year just closed witnessed a large increase in the number of items of this class handled. In October, 1920, we made 1,825 collections, while in October, 1921, we collected 5, 748 items, or an increase of 3,923 collections. This represents an increase in volume of more than 200 per cent. MOVEMENT OF MEMBERSHIP. On January 1, 1921, the total number of national banks in this district was 663, with combined capital and surplus of $116,168,000. During the year 16 national banks were granted charters. Through liquidation, merger, and other causes, 24 were dropped from membership, making a net decrease of 8, or total on December 31, 1921, of 655. On January 1, 1921, our total State bank membership was 187, with combined capital and surplus of $21,175,500. During the year 26 State banks were admitted, 7 liquidated, consolidated with other institutions, or were converted into national banks, making a net increase during the year of 19, or a total on December 31, 1921, of 206. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11 DALLAS. 655 FEDERAL RESERVE NOTES. The decreased volume of business transacted in this district in 1921 is reflected in the movement of Federal Reserve notes. The reduction in notes in circulation has been gradual, but heavy, and on December 31, 1921, the amount outstanding was $45,215,775 less than on the same date a year ago. In past years the peak of issues has taken place in the fall months, when the demands for currency for crop-moving purposes were greatest. This has not been the case in 1921, and, except in the month of September, there was a steady contraction in note circulation, instead of an increase. September was the only month in the year in which the amount outstanding at the end of the month was greater than the month preceding. Aside from the reduced volume of business and consequent lessened demand for currency, an important factor which contributed to the reduction was the decrease in shipment of notes to banks on the Mexican border for circulation in Mexico. In 1920 notes in large amounts were used for this purpose, while in 1921 shipments of currency to border banks for Mexican circulation have been negligible. The Federal Reserve Agent issued notes to the bank during the year aggregating $25,762,000, as compared with $69,245,000 in 1920. The bank returned to the agent notes fit for use aggregating $13,217,000, as compared with $13,825,000 in 1920. Notes aggregating $57,760,775 were returned to the comptroller for destruction, as compared with $49,310,520 in 1920. FEDERAL RESERVE BANK NOTES. On December 31, 1920, the bank had Federal Reserve Bank notes in actual circulation amounting to $7,101,000. New notes aggregating $1,980,000 were issued in 1921, notes totaling $7,775,000 were sent to Washington for redemption, and $2,949,800 were outstanding on December 31, 1921. Of this amount $2,726,441 were in actual circulation. FIDUCIARY POWERS TO NATIONAL BANKS. Only two banks were granted fiduciary powers in 1921, making a total of 61 banks which had received such permission on December 31, 1921. Some of the larger banks have featured their trust departments and are obtaining a profitable line of business. The majority of the banks authorized to exercise these special functions, however, have not used them, as disclosed by replies received to the questionnaire recently sent out by the Federal Reserve Board. Various reasons are advanced for this, but it seems principally attributable to unfamiliarity with the handling of trust business by the officers of commercial banks. MEMBER BANK RELATIONS DEPARTMENT. The field representatives and the Assistant Federal Reserve Agent, in charge of the member bank relations department, made 1,163 visits to member and nonmember banks in the district during 1921. Six hundred and eighty-seven visits were made to member banks in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

656 REPORT OF THE FEDERAL RESERVE BOARD. following out the established policy of a personal visit to each member from time to time for the purpose of fostering better relations, the establishment of more perfect contact between the Federal Reserve Bank of Dallas and its branches with its members, and the encouragement of the more frequent use of this bank's facilities. Three hundred and sixty-two visits were made to nonmember banks located in the same towns or cities with member banks. In addition to the visits above mentioned, representatives of the member bank relations department made 114 special calls on member and nonmember banks to secure specific credit information, or for the purpose of personally handling matters incident to our check collection system as it affected some of our nonmember banks. STATE BANK MEMBERSHIPS. While no active campaign for State bank members was conducted in 1921, 56 applications were received, of which 26 were favorably acted upon, and the memberships of the banks concluded. Action on the remainder was deferred on account of the condition of the banks. A number of inquiries were received from banks which had membership under consideration, and the matter has also been discussed personally by officers of State banks with the Federal Reserve Agent's department throughout the year. In such instances, of course, all necessary information was furnished. The extended condition of many State banks precluded favorable recommendation upon their applications by our executive committee, and the banks were frankly advised of the committee's attitude, and the suggestion was made that they set about to improve their condition. This was done in several instances, and upon reconsideration of the application by the committee favorable action was had. BANK EXAMINATIONS. On December 31, 1921, there were 206 State bank members of the Federal Reserve System in this district, as compared with 187 at the beginning of the year. The number of joint examinations conducted in 1921 by the examination department was 175, as against 58 in 1920. There was also an increase of more than 150 per cent in the aggregate number of examinations of all kinds, including joint, special, independent, and those made in connection with applications for membership. FISCAL AGENCY DEPARTMENT. The functions performed by this department, as well as the volume handled^ was much the same as last year with the exception of the handling of War Finance Corporation matters. The most important changes effected during the year were the curtailment of activities of the war savings publicity organization at the direction of the Treasury Department, which permitted a reduction of 13 in the clerical force, and the acquisition of responsibility and added duties in connection with the War Finance Corporation transactions. The activities of the War Finance Corporation in connection with making loans on cotton and live stock in this district began in earnest early in the fall, and this bank, acting as fiscal agent, has attended Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11 DALLAS. 657 to disbursement of all such advances, and retains custody of papers and collaterals and effects the collection of interest and principal, the substitution of collateral, renewals, etc. The handling of these transactions has entailed considerable work and required close supervision, and was carried on without acquiring additional help. Advances on cotton amounted to $1,337,933.50 and on live stock $5,232,498.34. Commencing July 1, the Treasury Department discontinued the practice of reimbursing this bank for expenses incurred in handling fiscal agency transactions, except in connection with certificates of indebtedness and war savings publicity matters, necessitating this bank absorbing expense, not heretofore borne, at the rate of about $65,000 per annum. OPERATIONS OF THE EL PASO BRANCH. Practically the entire membership of the district exercised the rediscount privilege during the year, 68 of the 71 member banks having been accommodated. Continued heavy discount operations evidence the service of the branch in meeting the demand for credit in the district. Average discounts and rediscounts of the branch have been approximately double the pro rata participation of its membership. During the vear discounts and rediscounts amounted to $97,866,448.95. Member banks made free use of the privileges afforded by the branch in connection with currency and coin transactions. There were received during the year 3,385,726 bills, amounting to $28,188,100, and 11,055,201 coins, amounting to $6,532,558.50. There were shipped and delivered 4,223,367 bills, amounting to $33,818,788, and 5,284,701 coins, amounting to $3,641,658.50. Total number of incoming and outgoing shipments were 7,162 and 3,143, respectively, a monthly average of 597 and 262, respectively, amounting to $2,893,388.21 and $3,121,703.88, respectively. This department effected 11,026 transfers of funds, involving $145,635,394.83, the larger part of which were made by telegraph, the expense in connection being absorbed by the Federal Reserve Bank. Check collection operations amounted to 2,413,777 items, with a value of $324,004,604, compared with $2,677,295 and $529,576,897, respectively, in 1920. OPERATIONS OF THE HOUSTON BRANCH. The loan and discount department handled this year a total of 2,190 offerings, aggregating $37,987,072.10. One thousand five hundred and ninety-five member-bank collateral notes, totaling $91,445,475.07, were discounted. Immediate credit was given on 138 bill-of-lading drafts, amounting to $992,274.81. These drafts represented the exportation of cotton to Europe and the domestic shipment of rice. The total number of notes and drafts handled during the year was 16,462 and the total amount $129,432,547.17. The largest note handled was $1,000,000, and the smallest $10. Since its opening the branch has loaned $485,821,861.16. Ninety-three banks rediscounted their paper this year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

658 REPORT OF THE FEDERAL RESERVE BOARD. Each year more success is attained in requesting financial statements, yet there is still considerable misunderstanding in this territory regarding the purpose and necessity of procuring statements. This department examined 16,804 notes, of which 1,937 were rejected. The cash department received 4,943 shipments of coin and currency, aggregating $46,604,363.32. Three thousand five hundred and twenty-four outgoing shipments, of a dollar value of $54,123,069.82, were made. The ban placed on foreign moneys by the Mexican Government swelled the receipts considerably, and the currency received was badly mutilated. Wire transfers received totaled $270,191,845.16 and those sent $172,131,680.35. The activities of the collection department have increased steadily throughout the year. Nineteen thousand four hundred and fifteen items, totaling $27,629,014.98, were received, and of same 16,587, aggregating $25,705,206.64, were collected. The transit department handled 5,040,492 items, the dollar value of which was $1,265,756,781.29, as compared to 5,235,955 checks, amounting to $2,138,087,919.62, during 1920. From the above figures it will be observed that there was not a great difference in the number of items handled in 1921 as compared to 1920. However, the dollar value was almost twice as large in 1920, which indicates, in a measure, the further downward trend of prices. The largest number of checks handled in one day was 30,125 and the smallest 10,795. An average of 22 employees handled the affairs of this department. At the close of business December 31, 1920, trust custodies totaled $7,741,531, represented by 431 trust receipts, but by the same date in 1921 had increased to $10,733,590.46, against which 546 receipts were outstanding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11 DALLAS. 659 SCHEDULE 1.—COMPARATIVE STATEMENT OP CONDITION. [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, 1921. 1920. 1919. RESOURCES. Gold and gold certificates 7,263 10,008 6,470 Gold settlement fund—Federal Reserve Board. 8,518 2,074 17,073 Gold with foreign agencies 86 3,414 Total gold held by bank 15,781 12,168 26,957 Gold with Federal Reserve Agent 11,093 24,484 27,545 Gold redemption fund 2,941 4,431 3,712 Total gold reserves 29,815 41,083 58,214 Legal tender notes, silver, etc 6,149 4,455 1,197 Total reserves . . . .. 35,964 45,538 59,411 Bills discounted: Secured by United States Government obligations 8,962 15,903 39,376 All other 41 635 54 793 •18,940 Bills bought in open market '•165 247 6,421 Total bills on hand 50,762 70,943 64,737 U Un n i i t t e e d d S S t t a a t t e e s s c b e o r n ti d f s ic a a n te d s n o o f t i e n s debtedness: 2 630 3r979 3 966 One-year certificates (Pittman Act) 1,900 8,300 8,300 All other 765 Total earning assets 55,292 83,222 77,768 Bank premises 2,168 1,639 399 5 per cent redemption fund against Federal ^Reserve Bank notes 156 586 558 Uncollected items . . . 25,694 42,963 61,892 All other resources . . 2,755 717 464 Total resources 122,029 174,665 200,492 LIABILITIES. Capital paid in . .. . .. 4,203 4,099 3,421 Surplus 7,394 6,033 3,030 Deposits: G overnment 4,344 1,660 2,900 Member bank—reserve account 43,372 46,995 63,372 All other. 297 245 2,043 Total deposits 48,013 48,900 68,315 Federal Reserve notes in actual circulation 35,470 79,453 74,930 Federal Reserve Bank notes in circulation—net liability 2,726 7,101 10,461 Deferred availability items 22,635 28,235 39,916 All other liabilities 1,588 844 419 Total liabilities 122,029 174,665 200,492 Ratio of total reserves to deposit and Federal Reserve note liabilities combined 43.1 140.1 149.0 1 Calculated on basis of net deposits and Federal Reserve notes in circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES DURING 1921. [Amounts in thousands of dollars.] Discounted bills. Reserve percent- Discounted for member banks ages.2 Date. ( e 2 a T a + s r o n s 7 t e i + a n t l s 8 g ). ( T h 4 o e - l t 3 d a ) l . c F R o o w e u e t d h n i d e t e t i h r e s r a - d l in t b h S y i e s c U u d r i . e s S d tr . ict. m i b n B o a r u o i k l p g l e e s h t n t .1 U s S e t n i c t e a i u t s t r e e . i d s - re T s c e a o r s t v a h e l s. de T p o o t s a i l ts. n F c re o i e t r s i t d c o e e u e s r n r l v . a i a e n - l o w r b e a s n er k v s e . ( T 2 o + t 3 a ) l . G m ov e e n r t n- P ( e 5- r 5 - c 4 e ). nt Actual. jus A te d d - .3 O H obligations. 1 2 3 4 5 6 7 8 9 10 11 12 13 Jan 7 83,131 70,705 27,189 97,894 33,628 34.4 147 12,279 45,669 48,443 78,280 40,2 16.3 14 . 82,155 69,729 26,567 96,296 31,154 32.4 147 12,279 46,033 49,582 75,263 40.6 17.2 21 - - 82,430 70,029 23,194 93 223 30,844 33.1 122 12,279 44,407 50,607 74,397 39.8 19.0 28 81,320 68,944 21,485 90^429 28,763 31.8 97 12,279 46,849 52,187 72,363 41 4 22.4 Feb 4 82,584 70,208 17,540 87,748 27,705 31.6 97 12,279 45,093 52,520 71,369 40.0 24.4 11 83,027 70,676 13,812 84,488 25,560 30.3 72 12,279 43,741 53,653 69,029 39.0 26.7 18 79,325 66,991 14,500 81,491 24,279 29.8 55 12,279 44,874 53,689 67,152 40.9 27.7 25 - - 80,983 68,665 13,615 82,280 25,241 30.7 39 1.2,279 45,136 52,164 66,020 40.4 28 2 Mar 4 80,378 68,099 12,399 80,498 24,184 30.0 12,279 42,565 50,865 66,763 39.1 27.7 11 - 78,334 66,055 13,455 79,510 23,106 29.1 12,279 42,268 53,874 64,119 39.6 27.0 18 75,153 62,874 13,437 76,311 21,095 27.6 12,279 44,388 56,123 61,848 37.6 26.2 25 75,685 63,406 14,663 78,069 21,851 28.0 12.279 45,028 56,436 59,947 38.7 26.1 Apr 1 - -. 74,540 62,140 • 14,764 76,904 21,565 28.0 21 12;379 42,674 51,613 59,215 38.5 25.2 8 75,552 63,252 12,405 75,657 20,270 26.8 21 12,279 41,885 49,867 58,607 38.6 27.2 15 74,084 61,780 12,169 73,949 17,937 24.3 25 12,279 39,606 46,901 57,461 38.0 26.3 22 73,236 64,832 7,437 72,269 16,632 23.0 25 8,379 42,458 47,760 56,844 40.6 33.5 o 27 74,564 66,160 6,600 72,760 16,291 22.4 25 8,379 39,694 48,870 55,095 38.2 31.8 May 4 72,487 64,083 6,882 70,965 14,867 20.9 25 8,379 39,973 44,950 54,615 40.1 33.2 74,754 66,350 4,950 71,300 14,280 20.0 25 8,379 38,655 45,891 54,127 38.6 33.7 18 72,798 64,248 6,131 70,379 14,369 20.4 171 8,379 40,447 46,835 51,734 41.0 34.8 25 73,254 64,704 4,617 69,321 13,592 19.6 171 8,379 36,910 46,974 50,144 38.0 33.3 June 1 70,345 62,795 5,500 68,295 14,334 21.0 171 7,379 38,160 45,450 50,044 40.0 34.2 8 74,276 66,726 2,500 69,226 13,444 19.4 171 7,379 35,991 45,768 49,191 37.9 35.3 15 . 70,880 61,830 7,408 69,238 14,134 20.4 171 8,879 36,253 45,858 48,213 38.5 30.7 22 72,134 65,086 4,125 69,211 13,777 19.9 169 6,879 36,123 45,924 46,642 39.0 34.6 29 70,103 63,574 8,425 71,999 14,286 19.8 150 6,379 34,181 44,563 45,557 37.9 28.6 July 6 66,633 60,144 10,450 70,594 14,470 20.5 110 6,379 35,200 44,557 45,398 39.1 27.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

13 64,360 57,845 16,445 74,290 13,684 18.4 136 6,379 35,340 44,032 43,331 40.5 21.6 20 65,013 58,524 18,287 76,811 14,501 18.9 110 6,379 35,529 44,492 43,470 40.4 19.6 27 64,099 57,620 19,136 76,756 14,466 18.8 100 6,379 34,416 42,925 42,323 40.4 17.9 Aug. 3 ." I 61,867 55,388 19,220 74,608 14,406 19.3 100 6,379 33,761 41,284 41,769 40.6 17.5 10 61,723 55,244 17,735 72,979 13,586 18.6 100 6,379 34,274 42,615 40,827 41.1 19.8 17. 60,701 54,252 19,753 74,005 13,536 18.3 70 6,379 33,467 42,708 39,946 40.5 16.6 24.. 61,420 54,971 21,726 76,697 14,035 18.3 70 6,379 31,950 42,763 39,059 39.0 12 5 31.. 59,912 53,713 24,610 78,323 14,781 18.9 70 6,129 31,921 40,515 39,106 40.1 9.2 Sept. 7... 59,998 54,527 24,059 78,586 14,639 18.6 42 5,429 32,809 41,348 39,409 40.6 10.8 14... 57,869 52,495 24,295 76,790 13,950 18.2 20 5,354 34,865 42,983 39,415 42.3 12.8 21.. 64,044 59,124 18,266 77,390 14,770 19.1 20 4,900 34,092 46,264 39,814 39.6 18.4 66,523 61,680 14,851 76,531 14,993 19.6 70 4,773 35,141 48,388 40,224 39.7 22.9 Oct. 5 65,096 60,483 12,108 72,591 14,865 20.5 70 4,543 36,618 46,356 42,074 41.4 27.7 11: 64,749 60,036 7,649 67,685 12,812 18.9 170 4,543 34,013 47,406 41,433 38.3 29.7 19 62,245 57,497 8,225 65,722 13,266 20.2 205 4,543 35,052 47,796 40,246 39.8 30.5 26 62,885 58,137 8,465 66,602 13,487 20.3 205 4,543 33,966 46,465 39,752 39.4 29.6 Nov. 2 60,425 55,677 7,251 62,928 13,664 21.7 205 4,543 33,682 43,882 39,630 40.3 31.6 9 61,015 56,217 5,495 61,712 11,909 19.3 255 4,543 33,152 44,321 38,488 40.0 33.4 C 16 60,447 55,814 970 58,784 10,638 18.8 90 4,543 33,597 45, 450 37,888 40.3 39.2 23 59, 372 54, 639 2,487 57,126 12, 052 21.1 190 4,543 31,600 43,196 37, 000 39.4 33.3 H 30 59,608 54, 875 3,000 57, 875 11,938 20.6 190 4, 543 32, 424 45,815 33,638 39.3 35.7 Dec. 7. 58,537 53,804 1,877 55, 681 10, 387 18.7 190 4, 543 34, 479 45, 298 35, 302 42.3 40.0 14 57,931 53,223 1,000 54,223 10,093 18.6 165 4,543 33, 726 45, 428 35, 255 41.8 40.6 21 57,131 52,436 52,436 9,834 18.8 165 4,530 40,467 47, 310 36,327 48.4 28 56,086 51,391 51,391 9,512 18.5 165 4,530 38,493 49,042 3J, 292 45! 1 1 No acceptances were bought or sold to other Federal Reserve Banks. 2 Prior to Mar. 18, net deposits, as given below, were used in calculating reserve percentages: Jan. 7 $35,289,000 [ Feb. 4 $41,393,000 Mar. 4 $42,125,000 14 38,109,000 11 43,001,000 11 42,718,000 21 37,098,000 18 42,436,000 28 40, 899,000 | 25 45,659, 000 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. A blank in this column indicates that no accommodation was extended to or received from other Federal reserve banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

662 REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK OF DALLAS MOVEMENT OF EARNING ASSETS DURING 1920 AND 1921 MILLIONS OF DOLLARS MILLIONS OF DOLLAR! 60 60 UNITED STATES SECURITIES 40 40 20 JA 20 1 0 40 PURCHASED BILLS 20 2O 0 0 160 160 DISCOUNTED BILLS SEE NOTE BELOW, 140 140 120 120 100 100 80 80 \. 60 60 40 20 0 140 140 TOTAL EARNING ASSETS 120 120 100 100 80 60 40 1920 1921 A - Paper secured by U. 3. Gorernmeitf 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 - where above line B - paper disootinted for, and - where below line B - paper redisooimted with, other Federal B»serre Banfcs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11—DALLAS. 663 FEDERAL RESERVE BANK OF DALLAS DEPOSITS, F. R.NOTE CIRCULATION, CASH RESERVES AND RESERVE RATIOS, 1920-1921 PER CENT 90 -ACTUAL RESERVE RATIOS SDJUSTED \ 70 \ 60 \ V 50 50 40 \ \ K *+<* 30 \ S / \ **% A* • V. •A \ / 10 10 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 80 DEPOSITs 80 60 \ 60 40 I i 1 I 1i i i i 1i i I 20 I i i i i i i i I i i I i i 20 i 120 F. R. NOTE CIRCULATION 100 80 DEPOSIT AND F. R.NOTE LIABILITIES, L,AND TOTAL RESERVES, C 1920 1921 Adjusted percentages aro calculated after reduoing or increasing reserves held by the amount ofaoconaajdation received from or extended to other Federal Reserve banks. Tha deposit curve is based on '•net deposits" up to liarch 11, 1921» and on '•total deposits'* thereafter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 3.—VOLUME OF PAPER DISCOUNTED AND BOUGHT. a [In thousands of dollars.] Total discounted and purchased Discounted paper. Purchased paper. paper. Month. Total. S l m e G ig c e o u a n v r ti e t e o d o r n n b s b - - . y B a a a c n n c c k e e p e s t r . - s' c T e r p a t d a e n c a e c s - . l t i A u v p r e g a a - r p l s i c t e a o u r n c . l d - k ot A h ll er. Total. B a a a c n n c c k e e p e s t r . - s' 1921 1920 1919 O January 91,743 60,686 80 556 13,570 16,851 91,743 83,946 92,140 February 67,375 49,191 198 8,037 9,949 67,375 76, 350 93, 355 March 73, 452 50,441 54 440 9,233 13,284 21 21 73,473 93, 928 104,925 April 64, 551 42,339 372 9,024 12,816 4 4 64. 555 108, 952 117, 861 H May 60,345 34,389 362 n, 158 14,436 150 150 60, 495 111, 446 130, 703 June 65,636 34,146 356 13,199 17,935 19 19 65,655 117,350 113, 247 July 59,114 27, 620 323 11,347 19,824 60 60 59,174 110,216 100, 214 August 63,432 34,446 449 9,357 19,180 20 20 63,452 111, 588 95,139 September 65,545 36,498 166 6,703 22,178 50 50 65,595 124,573 118,337 October 62, 451 35, 493 346 8,156 18,456 155 155 62,606 114, 948 138, 314 N D o ec v e e m m b b e e r r 4 53 5 , , 0 3 3 1 8 5 2 22 7 , , 2 1 6 6 9 7 20 1 1 0 9 1 6 1 9 1 , , 2 04 7 9 2 1 1 4 3 , ,3 9 7 0 6 3 20 1 0 5 20 1 0 5 5 45 3 , , 5 0 1 5 5 3 1 1 2 1 4 0 , , 3 8 4 8 7 2 6 7 0 2 , , 5 5 4 8 2 4 fcd Total, 1921. 771, 997 454,685 154 3,865 120,105 193,188 694 694 772,691 1 1 9 9 1 2 9 0 . . 1 1, , 2 2 2 8 4 0 , , 1 9 7 4 8 6 1,1 9 0 9 5 9 , ,9 0 4 6 3 0 704 5 1 , ,8 6 8 7 7 0 2 1 7 1 3 7 , ,9 8 9 6 9 1 12 8 , , 3 4 4 1 8 5 12 8 , , 3 4 4 1 8 5 1, 237, 361 O b Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 11 DALLAS. 665 SCHEDULE 4.—EARNINGS AND EXPENSES. 1921 1920 1919 Discounted "bills ! 13,829,840 $4,044,612 $2,443,806 Purchased bills 7,980 73,212 113,397 United States securities.... 171,151 270,874 229,080 Transfers—net earnings 89,339 350,969 193,661 Deficient reserve penalties. 124,163 158,569 81,984 Miscellaneous ! 21,175 323 Total earnings : 4,243,648 4,904,522 3,062,251 CURRENT EXPENSES. Salaries: Bank officers 133,545 117,768 87,212 Clerical staff 735,904 649,100 390,993 Special officers and watchmen 34,598 20,177 6,363 Allother 82,470 39,456 '11,883 Governors' conferences 714 651 788 Federal Reserve Agents' conferences 295 64 109 Federal Advisory Council 200 400 992 Directors' meetings 7,004 6,530 4,447 Traveling expenses l 39,185 30,851 14,578 Assessments for Federal Reserve Board expenses 25,759 21,695 20,362 Legal fees 2,622 2,400 Insurance (life, fidelity, casualty, workmen's compensation, and general liability) 39,607 31,067 13,308 Banking house: Taxes and fire insurance 37,599 3,476 1,746 Light, heat, and power. 27,632 6,896 3,365 Repairs and alterations 18,476 13,797 13,194 Rent, including light, heat and power, and minor alterations 9,660 14,904 5,526 Fire insurance—furniture and equipment 194 Printing and stationery (including office and other supplies) 114,405 67,998 41,009 Telephone "..". 9,652 3,938 3,189 Telegraph 68,680 56,900 21,772 S C e u c r u re r n it c y y s a h n ip d m c e o n in ts s hipments , 2 2 7 4 1 , , 8 6 7 0 0 3 79,352 51,075 Postage and expressage (other than on money and security shipments) * 69,946 65,506 39,883 Furniture and equipment 155,843 82,883 70,718 Federal Reserve currency: Original cost, including shipping charges 65,915 86,514 85,719 Cost of redemption, including shipping charges 23,150 22,825 8,028 Taxes on Federal Reserve Bank note circulation 22,286 46,397 42,829 All other expenses 61,571 78,080 41,348 Total current expenses.. 1,860, 856 1,549,847 982,836 Current net earnings 2,382,792 3,354,675 2,079,415 PROFIT AND LOSS ACCOUNT. Earnings 4,243,648 4,904,522 3,062,251 Current expenses. 1,860,856 1,549,847 Current net earnings.. 2,382,792 3,354,675 2,079,415 Additions to current net earnings: Assessment account expenses Federal Reserve Board, previously charged to profit and loss 16,167 All other 884 43 470 Total additions. 884 16,210 470 Deductions from current net earnings: Depreciation allowances on bank premises 139,230 Reserve for possible losses 561,500 130,963 Reserve for depreciation on United States bonds 49,295 Assessment account expenses Federal Reserve Board. 16,167 All other 20,087 11,691 21,854 Total deductions 770,112 142,654 38,021 Net deductions from current net earnings 769,228 126,444 37,551 Net earnings available for dividends, surplus and franchise tax 1,613,564 3,228,231 2,041,864 Dividends paid 252,211 225,424 196,335 Transferred to surplus account 1,361,353 3,002,807 1,845,529 1 Other than those connected with governors' and agents' conferences and meetings of directors and of the advisory council. 8 Cost of security shipments from January to June included with cost of currency and coin shipments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

666 REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE 5.—CURRENCY RECEIPTS PROM AND PAYMENTS TO MEMBER AND NON- MEMBER BANKS. [In thousands of dollars.] Receipts. Payments. Total receipts. Total payments. From Month. From non- To member mem- member 1921 1920 1919 1921 1920 1919 banks. ber banks. banks. January 19,970 430 6,793 20,400 11,206 11,710 7,773 7,009 2,104 February 15,688 418 6,385 16,106 6,756 6,876 6,954 8,883 I 3,556 March...v 19,034 723 7,491 19,757 10,934 5,343 8,630 10,059 i 4,713 April 15,975 506 8,128 16,481 11,854 5,483 9,061 9,372 4,344 May 18,726 612 8,919 19,338 12,125 4,975 9,209 8,618 4,581 June 17,150 452 7,399 17,602 10,914 3,579 7,907 9,811 7,183 July 19,728 510 8,330 20,238 12,822 5,953 8,635 9,591 6,505 August 15,642 437 8,302 16,079 12,395 4,776 8,636 12,567 7,147 September.., 12,222 508 12,755 12,730 11,724' 4,933 13,111 17,500 14,096 October 14,359 455 8,866 14,814 16,159 6,327 9,046 13,816 14,804 November... 14,978 326 7,086 15,304 21,621 5,117 7,247 8,294 13,471 December 14,122 519 11,965 14,641 20,872 10,716 12,311 11,221 12,214 Total, 1921. 197,594 5,896 102,419 6,101 ! 203,490 108,520 1920. 152,697 6,685 120,951 5,790 ! 159,382 j. 126,741 1919. 72,580 3,208 90,145 4,573 75,788 94,718 SCHEDULE 6.—OPERATIONS OF FEDERAL RESERVE CLEARING SYSTEM. [Figures include cash items only.] [Numbers in thousands; amounts in thousands of dollars.] Items drawn on banks in own district. Items drawn on Items forwarded Period. L an o R c d a e t b s e e r d r a v n in e c h B F c a e i n d t e k ie r s a . l B F L a e o n d c k e a r t a a e n l d d R o b e u s r t e a si r n d v c e e h U T n r i e te as d u S re ta r t o e f s. R t e t o h s e e o r i t v r h e e b r r B a F a n e n c d k h e s e r s a a . n l d cities. N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. Jan. 1-15 120 58,468 962 146,066 59 4,065 61 27,023 Jan. 16-Feb. 15 228 106,970 1,851 259,466 89 7,995 127 36,370 Feb. 16-Mar. 15 230 101,883 1,782 232,296 77 7,893 103 26,262 Mar. 16-Apr. 15 268 111,757 2,029 241,430 103 9,686 112 27,887 Apr. 16-May 15 222 92,744 1,842 201,384 104 7,579 100 21,031 May 16-June 15 247 96,689 1,969 205,722 96 7,937 109 21,548 June 16-July 15 214 88,962 1,746 190,084 102 9,601 100 17,445 July 16-Aug. 15 220 84,434 1,632 194,163 77 7,149 82 14,677 Aug. 16-Sept. 15 244 93,226 1,920 207,537 71 7,258 88 15,191 Sept. 16-Oct. 15 265 125,742 1,871 271,613 96 7,640 84 16,309 Oct. 16-Nov. 15 272 119,694 1,739 255,305 108 8,529 85 18,173 Nov. 16-Dec. 15 276 112,152 1,733 238,053 94 9,666 93 15,693 Dec. 16-Dec. 31 149 59,108 916 122,043 70 4,278 52 9,628 Total, 1921 2,955 1,251,829 21,992 2,765,162 1,146 99,276 1,196 267,237 1920 2,294 1,871,511 23,021 4,303,032 ' 1,145 107,662 1,831 787,181 1919 1,151 1,144,256 9,592 2,697,699 ! 1,265 157,169 1,405 686,844 Total number.l Total amount.1- Period. 1921 1920 1919 1921 1920 1919 Jan 1-15 1,202 1,049 367 235,622 329,683 148,465 Jan 16 Feb 15 2 295 2 273 843 410,801 696,538 297,204 Feb 16-Mar. 15 .... 2,192 2,306 838 368,334 738,284 261,966 Mar 16- Apr 15 2 512 2 313 969 390,760 631,143 308,133 Apr 16-May 15 2,268 2,250 891 322,738 549,966 327,488 May 16-June 15 2,421 2,321 837 331,896 533,994 342,675 June 16-Julv 15 2,162 2,262 840 306,092 494,151 320,624 July 16-Aug. 15 2,011 2,257 944 300,423 490,131 338,427 Aug. 16-Sept. 15 .... 2,323 2,270 930 323,212 514,815 369,124 Sept. 16-Oct. 15 2,316 2,482 1,196 421,304 664,420 376,001 Oct 16-Nov. 15 2,204 2,591 1,737 401,701 632,340 652,375 Nov. 16-Dec. 15 2,196 2,534 1,917 375,564 537,801 602,815 Dec. 16-Dec. 31 1,187 1,383 1,104 195,057 256,120 340,671 Total, 1921 27,289 •- 4,383,504 1920 28 29i *7,069*386 1919 13,413 4,685,968 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. SUMMARY OF OPERATIONS. Operations of the Federal Reserve Bank of San Francisco during the year ending December 31, 1921, were substantially larger in physical volume than during any previous year. Growth in the number of transactions in the principal departments of its service to member banks is measured in the following summary table: Per cent increase or de- 1921 crease (— 1921 over 1920. A. Clearings and collections: (1) Number of checks and other cash items handled 41,123,000 28,180,000 45.9 (2) Total amount such items $7,599,026,000181.,120,081,000 -6.4 (3) Number of mail and telegraphic transfers bought and sold 60,360 29,291 106.1 (4) Total amount such transfers $4,116,085,00013,,043,193,991 35.2 B. Currency—Total amount received from and shipped to banks... $1,020,384,000 $877,569,000 16.3 C. Discounts: (1) Number of offerings ; 116,380 92,781 25.4 (2) Amount such offerings $2,823,018,000 $2,965,647,000 -4.8 D. Fiscal agency: , (1) Number of United States Government checks and warrants paid 12,106,000 U,523,000 38.3 (2) Total amount such items $1,319,864,000 $1,726,996,000 -23.6 (3) Number of subscriptions received for offerings of United States certificates of indebtedness and Treasury notes... 5,726 5,915 -3.2 (4) Total amount allotted thereunder $204,196,800 $261,569,000 -21.9 (5) Number of United States Government security coupons paid 8,621,582 5,313,675 62.2 (6) Amount such coupons $52,481,038 $29,898,000 72.2 E. Bank examinations, number made 216 153 41.2 1 Included in totals under AM 1 and 2. Comparative balance sheets showing the condition of this bank as at close of business December 31 for the past three years are published in Schedule 1. The noteworthy changes during the year were: (1) A decline of $128,772,000, or 56.6 per cent, in the amount of earning assets held. Among the several items of earning assets, the principal decline was in the amount of bills discounted for member banks, which declined from $167,598,000 on December 31, 1920, to $67,093,000 December 31, 1921, a decrease of 60 per cent; (2) A decline of $32,052,000, or 11.8 per cent, in the amount of Federal Reserve notes in actual circulation; 3. An increase of $99,657,000 ($97,570,000 of which was gold), or 54.4 per cent, in the total money reserves held; and (4) A resulting increase of 28.6 per cent in the ratio of total reserves to combined deposit and Federal Reserve note liabilities. This reserve ratio was 76. 5 per cent on December 31, 1921, as compared with 47.9 per cent on December 31, 1920. 67 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

668 REPORT OF THE FEDERAL RESERVE BOARD. EARNINGS AND EXPENSES. In response to changes in credit conditions and prospects during the year 1921, the discount rate of this bank was lowered by two reductions of one-half per cent from 6 per cent, the rate in effect on January 1, 1921, to 5 per cent, the rate in effect on December 31, 1921. These reductions in rates, accompanying a steady decline during the year in amount of bills discounted and other earning assets, resulted in a decrease of $3,522,000, or 27.7 per cent, in total earnings for 1921 as compared with 1920. Summarized, these earnings and their disposition for the past three years were as follows (for details see Schedule 4): 1921 1920 1919 Total earnings 1,184,413 $12,706,668 $7,021,224 Total current expenses 1,816,964 2,502,586 1,431:755 Net earnings available for dividends, etc :, 920,500 10,108,823 5,387,360 Dividends paid 435,361 384,713 296,161 Transferred to surplus fund ,254,824 6,654,855 5,091,199 Franchise tax paid United States Government !, 230,315 3,069,255 BANKING OPERATIONS. In the tables annexed to this report appear detailed figures concerning the operations during 1921, with comparisons for 1920. A chart showing the movement of the principal assets and liability items of this bank during the years 1921 and 1920 is published herewith. MEMBER BANK AND ^PUBLIC RELATIONS. On December 31, 1921, member banks of the Federal Reserve Bank of San Francisco numbered 841, with capital and surplus of $240,596,000, compared with a membership on December 31, 1920, of 831 banks, having capital and surplus of $231,244,454. Membership, by States, of this Federal Reserve district appears in the following table: Dec. 31, 1921. Dec. 31, 1920. Num- Capital and Num- Capital and ber. surplus. ber. surplus. Alaska . 1 $25,000 Arizona is $2,294,500 15 2,342,000 California 352 162,650,155 346 153,808,118 I N d e a v h a o da . 11 1 9 1 1 2 0 , , 0 4 2 8 1 1. , 6 3 0 0 0 0 12 1 9 1 1 2 1 , , 0 0 0 2 1 4, , 8 3 0 0 2 0 Oregon. . 130 22,097,908 119 19,358,033 Utah . .. 64 12,721,666 64 13,245,706 Washington . 150 28,329,450 146 29,439,495 District 841 240,596,579 831 231,244,454 On December 31, 1921, there were pending applications for membership from 10 State banks, with combined capital and surplus of $3,161,950. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12—SAN FRANCISCO. 669 EXAMINATIONS. Independent examinations of all State banks in this district applying for membership in the Federal Reserve System during 1921 have been made by the examining department of this bank, in order that necessary adjustments in the affairs of applicant banks might be incorporated in the conditions of membership. The work entailed by these examinations for admission, and by the examination of certain State members more than once, prevented this department, notwithstanding especial endeavor, from examining each State bank member at least once during 1921. Reports of examinations made by State banking departments have been received for all State bank members in the examination of which this department could not participate. Examiners of the national and State banking departments in this district have cordially cooperated to the fullest extent. On January 1, 1921, there were in this district 199 State member banks. During the year 38 additional banks have been admitted, and 16 have been lost to the system through withdrawals, liquidations, conversions, and consolidations, making a net increase of 22 for the year and a total of 221 State members on December 31, 1921. On February 28, 1921, there was held in San Francisco a conference of the directors, including the managers, of the five branches of this bank and the directors and senior officers of the head office. Extended discussion of credit conditions was had, with particular reference to means of assisting member banks in financing the growing, harvesting, and marketing of the agricultural products of the district then in course of production. Circulation of the monthly report on agricultural and business conditions in the Twelfth Federal Reserve District increased from 4,600 in December, 1920, to 8,025 in December, 1921. This growth has been unsolicited. The three following special reports were prepared for publication and distribution during 1921 by the division of analysis and research: Special Report No. 1.—Disposition and carry over of 1920 crop of barley in California—April 16, 1921. Special Report No. 2.—Cotton in the Twelfth Federal Reserve District—July 1, 1921. Special Report No. 3.—Sheep-raising industry in the Twelfth Federal Reserve District—November 7, 1921. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

670 REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE 1.—COMPARATIVE STATEMENT OF CONDITION [In thousands of dollars.] Dec. 31. Dec. 31, Dec. 31, 1921. 1920. 1919. RESOUECES. Gold and gold certificates 18, 254 28,629 13,353 Gold settlement fund—Federal Reserve Board. 37,4:0 23,724 27,110 Gold with foreign agencies 152 6,041 Total gold held by bank 55, 714 52,505 46;504 Gold with Federal Reserve Agent. 220,433 119,060 129,050 Gold redemption fund 3,356 10,368 8,639 Total gold reserves 279,503 181,933 184,193 Legal-tender notes, silver, etc. 3,249 1,162 346 Total reserves. 282,752 183,095 184,539 Bills discounted: Secured by United States Government obligations. 13,683 51,546 I 43,551 All other 53, 410 116,052 ! 30,345 Bills bought in open market 20,795 46,798 102,558 Total bills on hand 87,888 214,396 176, 454 United States bonds and notes 2,927 2,087 2,632 United States certificates of indebtedness: One-year certificates (Pittman Act)... 10,880 10,880 All other 47 151 ' 964 Total earning assets. 98,742 227,514 190,930 Bank premises , 253 231 5 per cent redemption fund against Federal Reserve Bank notes... 394 665 665 Uncollected items 37,180 48,102 54,273 All other resources 6,244 1,347 Total resources. 426,121 460,976 431,006 LIABILITIES. Capital paid in. 7,375 6,927 5,750 Surplus 15,199 14,194 7,539 Deposits: Government 4,225 5,883 3,673 Member bank—reserve account. 121,108 114, 452 117,930 All other 3,876 3,907 6,071 Total deposits. 129,209 124,242 127,674 Federal Reserve notes in actual circulation 240, 411 272,463 242,462 Federal Reserve Bank notes in circulation—net liability. 4,751 8,157 11,845 Deferred availability items 28,045 33,713 34,772 All other liabilities 1,131 1,280 964 Total liabilities. 426,121 460,976 I 431,006 Ratio of total reserves to deposit and Federal Reserve note liabilities combined 76.5 1 52.6 1 Calculated on basis of net deposits and Federal Reserve notes in circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12 SAK FBA3STCISC0. 671 FEDERAL RESERVE BANK OF SAN FRANCISCO MOVEMENT OF EARNING ASSETS DURING 1920 AND 1921 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 100 100 Ul^ITEDST>XTESS;ECURITIIES 50 SO A, 0 777< V77 TA 777:777>EC2323BZZ 250 250 PURCHASED Bias 200 ZOO 150 150 100 ii i1 SO iIiIIiii i i 50 0 if// ZED •MSCOS£Z2323Z22 300 300 DISCOUNTED BILLS SEE NOTE BELOW 1 250 250 2C0 200 150 150 350 350 TOTAL EARNING ASSETS 300 300 250 250 200 200 150 100 50 50 1920 1921 • - Paper saotured by U. S. Ooverament obligations disooontad for banks in diatriot* B - Total paper discounted for banks in distriot. 0 - Total diMounted paper bald. Spaoe between lines B and 0 represent! paper discounted for other Federal Reserre batto Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SCHEDULE 2.—MOVEMENT OP PRINCIPAL ASSETS AND LIABILITIES DURING 1921. [Amounts in thousands of dollars.] to Bills discounted for member Reserve percentbanks in this district.1 Purchased bills. ages.3 Date. ( e 2 a a T + s r o s n 5 e t i + a n t 8 s l g ). Total. b G S o y t m e o i b c o v l U e u i n e g n r . s r e a t n . S d - - . P ( e 3 r - c 2 e ) n . t ( T 6 h o e + l t 7 d a ) l . R F B B o f e e o a r t d s o u n h e e m g k e r r v h r s a e t l i m c ( n h 5 P a o a - u r s p 6 k r e e - ) e d . n t s U S e t n i c t e a u it s t r e e . i d s - re T s c e a o r s t v a h e l s. de T p o o t s a it l s n R c F o i t e e r i t d c s o e e u e n s r l r . v a i a n e - l Actual. jus A te d d - .'' o w H net.s O 10 13 H Jan. 7 227,057 171,661 53,339 31.1 40,994 4,273 36,721 14,402 190,087 126,330 275,123 49.1 50.2 M 14 206,647 159,065 47,782 30.0 33,508 2,263 31,245 14,074 194,777 122,461 260,068 52.4 53.0 21. 197,178 152,025 43,634 28.7 31,138 6,698 24,440 14,015 206,108 127,365 255,304 55.2 57.0 28 199,482 145,851 41,386 28.4 39,698 16,063 23,635 13,933 197, 772 125,191 253, 831 53.9 58.2 Feb. 4 190,869 140,723 36,799 26.1 37,442 15,654 21,788 12.704 202,997 118,116 253,532 55.9 60.2 11 197,393 139,581 38,209 27.4 44,980 13,891 31,089 12, 832 195,225 121,747 247,303 53.9 57.8 18 200,653 141,266 40,471 28.6 46,449 10,615 35,834 12,938 191,866 126,945 245,983 53.0 56.0 25 203,409 145,319 44,230 30.4 44,825 7.792 37,033 13,265 183,638 120,516 243,143 51.6 53.8 Mar. 4 199,562 148,065 44,676 30.2 38,792 5,827 32,965 12.705 182,191 117,574 242,321 52.0 53.7 11 192,371 149,248 47,812 32.0 30,276 4,369 25,907 12, 847 190,098 120,102 239,809 54.1 55.2 18 177,062 144,127 47,815 33.2 20,149 2,426 17,723 12,786 199,781 123,304 236,180 55.6 56.4 25 194,912 163,096 53,597 32.9 18,954 1,285 17,669 12, 862 193,147 131,010 232,532 53.1 53.5 Apr. 1 190,986 161,689 48,339 29.9 16,718 - 9 16,727 12,579 189,349 124,882 231,853 53.1 53.1 8 189,737 163,139 49,250 30.2 14,030 - 9 14,039 12,568 191,837 126,947 231,266 53.6 53.6 15 183,556 159,466 50,158 31.5 11,497 - 9 11,506 12,593 195,876 128,308 230,225 54.6 54.6 22 179,372 155,346 46,045 29.6 11, 595 -25 11,620 12,431 197,688 120,234 231,532 56.2 56.2 May 2 4 7. 1 18 8 3 9 , , 5 7 5 2 8 8 1 1 6 6 6 0 , , 9 7 2 7 7 1 5 5 0 0, , 2 0 2 2 6 2 3 30 1 . . 0 2 1 1 0 0, , 5 2 6 7 6 0 - — 2 2 5 5 1 1 0 0 , , 5 2 9 9 1 5 1 12 2 , , 3 3 6 9 1 1 1 1 9 9 4 9 , , 6 0 6 7 6 0 1 1 1 2 7 3 , , 3 4 2 9 1 2 2 2 3 3 9 2 , , 3 2 0 2 7 0 5 5 6 4. . 6 0 5 54 6 . . 6 0 w 11 186,127 166,028 49,558 29.8 7,738 -25 7,763 12,361 198,813 120,966 238,673 55.3 55.3 o 18 180, 591 161,759 51,660 31.9 5,965 5,965 12,867 196,671 118,333 236,061 55.5 25 183,010 165,661 53,447 32.3 5,440 5,440 11,909 195,709 120,497 234,895 £5.1 J J u u l n y e " 2 2 2 2 1 1 6 1 0 7 9 8 2 3 5 . . . . . 1 1 1 1 1 1 1 1 1 5 5 5 7 7 6 6 8 8 3 9 5 1 1 2 2 2 1 , , , , , , , , , 6 2 8 3 8 4 6 5 3 4 5 0 8 3 2 4 7 1 4 2 7 9 6 8 5 5 1 1 1 1 1 1 1 1 1 1 4 4 4 4 5 5 4 6 6 1 8 6 9 0 9 2 5 i, , , , , , , , , 2 1 9 8 1 7 6 4 4 9 7 3 8 6 4 0 3 8 9 4 4 9 3 4 3 9 3 3 4 4 4 3 3 4 5 5 7 9 2 8 3 0 5 3 2 , , , , , , , , , 4 6 6 1 0 3 7 8 0 2 5 5 0 8 9 9 2 8 1 9 2 0 2 6 4 2 7 2 2 2 3 3 2 2 2 2 6 7 5 9 8 1 2 7 8 . . . . . . . . . 1 5 9 0 7 5 2 8 8 3 2 2 2 2 2 5 5 1 , , , , , , , , , 2 8 0 2 8 5 3 4 4 5 5 9 6 2 0 9 5 9 0 3 6 3 9 3 1 9 8 3 2 2 2 2 2 5 5 1 , , , , , , , , , 8 5 0 2 2 8 3 4 4 5 0 9 2 5 6 9 5 9 3 3 3 9 9 6 1 0 8 1 1 1 1 1 1 1 1 1 0 0 8 0 2 1 0 0 0 , , , , , , , , , 1 0 0 0 8 1 3 8 3 8 8 8 9 0 8 3 9 3 6 6 9 5 6 9 0 8 8 2 2 2 2 2 2 2 1 1 1 1 0 0 0 0 1 9 9 3 6 1 2 7 2 8 2 5 , , , , , , , , , 9 4 7 7 1 4 9 9 7 4 4 8 1 9 9 5 0 0 1 5 6 3 8 7 0 1 3 1 1 1 1 1 1 1 1 1 2 2 1 1 1 1 1 1 1 0 7 8 8 4 7 6 8 5 , , , , , , , , , 5 9 0 8 0 4 7 8 0 4 1 2 1 1 3 8 9 0 5 7 0 0 8 8 7 5 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 4 3 2 3 9 9 2 7 1 1 3 7 4 , , , , , , , , , 9 4 2 7 1 6 2 2 1 8 6 4 3 6 9 1 1 7 3 3 9 1 5 9 0 8 8 6 6 6 5 5 5 5 5 5 2 0 1 9 6 8 5 8 4 . . . . . . . . . 3 2 6 8 6 4 2 9 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Aug. 3 155,282 141,683 38,680 27.3 3,252 3,252 10,347 215,306 120,075 I229,626 61.6 10 147,746 134,336 37,047 27.6 3,057 3,057 10,353 217,990 120,303 |227,821 62.6 17 143,269 129,731 38,017 29.3 3,311 3,311 10,227 222,783 119,550 !225,944 64.5 24 141,204 127,288 37,904 29.8 3,830 3,830 10,086 226,778 121,296 I221, 549 65.6 31. 141,247 128,734 38,300 29.8 3,393 3,393 9,120 219,533 114,347 I225,722 64.6 Sept. 7 141,508 128,895 40,205 31.2 3,519 3, 519 9,094 225,496 118,623 I230,407 64.6 14 132,147 119,397 34,558 28.9 3,655 3,655 9,095 235,737 122,404 I228,674 67.1 21. 129,373 116,917 38,096 32.6 2,705 2,705 9,751 236,236 122,300 226,263 67.8 28 139,595 126,353 44,490 35.2 3,297 3,297 9,945 233,718 125,191 227,170 68.3 Oct. 5. 136,035 124,519 44,495 35.7 3,045 3,045 8,471 236,382 120,189 232,192 67.1 11. 130,732 118,621 42,189 35.6 3,834 3,834 8,277 240,255 119,387 232,685 68.2 D N e o c v . . 2 2 3 2 1 2 1 1 7 2 8 1 0 6 3 4 9 9 6 . . . . . . . . . . . 1 1 1 1 1 9 9 9 9 0 9 8 0 1 1 2 6 4 6 4 2 2 8 2 8 7 1 , , , , , , , , , , , 1 9 9 7 1 3 3 8 0 2 5 0 2 6 9 9 4 6 3 3 1 9 6 2 4 6 3 6 2 0 9 9 4 1 1 1 6 6 8 8 7 6 7 7 0 0 0 5 8 1 8 1 4 7 3 5 5 9 , , , , , , , , , , , 4 3 0 2 0 2 0 4 9 4 6 4 7 7 2 6 4 9 5 7 7 9 4 1 6 9 2 4 6 0 0 0 4 2 3 3 2 2 2 2 4 3 2 1 0 0 0 6 5 5 8 5 1 0 9 , , , , , , , , , , , 9 5 2 8 1 0 2 6 1 7 1 6 1 0 1 5 1 3 2 4 3 8 1 3 1 3 6 0 5 9 7 0 4 3 3 3 3 3 3 3 3 3 2 3 4 2 1 7 1 3 4 9 3 6 0 . . . . . . . . . . . 3 9 3 1 1 3 1 4 8 2 0 2 2 1 2 1 1 3 4 6 2 5 0 4 2 0 1 0 , , , , , , , , , , , 4 4 6 4 4 8 2 7 0 9 8 4 2 2 2 2 5 2 1 3 3 4 1 9 0 3 2 3 3 8 2 8 8 2 2 1 2 1 1 6 3 4 4 0 5 2 2 0 0 1 , , , , , , , , , , , 4 4 6 0 4 8 2 4 9 8 7 4 2 2 3 5 2 2 3 1 2 4 1 9 2 3 3 3 0 8 8 8 2 1 8 8 8 8 8 8 8 8 8 8 0 , , , , , , , , , , , 1 1 0 0 0 5 0 0 2 0 6 0 7 8 8 8 8 8 8 8 5 8 1 3 5 6 4 9 9 0 9 4 8 2 2 2 2 2 2 2 2 2 2 2 7 6 5 7 4 4 8 8 8 8 8 9 9 1 9 0 8 6 4 3 1 4 , , , , , , , , , , , 1 4 5 3 2 3 4 1 8 7 1 0 2 4 6 0 7 1 8 7 5 1 1 6 3 1 9 5 6 7 0 8 4 1 1 1 1 1 1 1 1 1 1 1 2 2 2 1 2 3 2 2 2 2 2 0 6 9 8 1 0 5 6 5 6 7 , , , , , , , . , , , 5 7 7 8 3 2 8 2 4 0 7 5 4 0 9 9 9 1 6 0 5 0 9 5 4 0 6 0 8 8 4 0 7 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 2 3 4 7 4 9 5 5 2 3 7 4 1 4 , , , , , , , , , , , 2 3 4 1 5 3 8 2 5 2 2 2 8 7 3 1 5 7 3 4 6 5 1 9 9 9 1 7 6 9 9 8 2 7 7 7 7 7 7 7 8 7 7 7 6 8 2 1 2 7 9 1 8 6 9 . . . . . . . . . . . 6 8 2 1 6 1 8 2 3 8 3 H o a 1 M No in b u i s l l s s i g w n e r i e n d d i i c s a c t o e u s n n te e d t a fo m r o o u r n w ts i t s h o l o d t h to e r o F th e e d r e F ra e l d R er e a s l e R rv e e s e B rv a e n k B s a . nks. T 3 Prior to Mar. 18, net deposits, as given below, were used in calculating reserve percentages: Jan. 7 $112,252,000 Feb. 4 $109,859,000 Mar. 4 $108,053,000 14 Ill,723,000 11 114,622,000 11 Ill,347,000 in 21 118,145,000 18 115,778,000 _2 8 1_1,3 ,_3,4 9_,0 00 25 112,868,000 * 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 blank in this column indicates that no accommodation was extended to or received from other Federal Reserve Banks. o M a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

674 REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE BANK OF SAN FRANCISCO DEPOSITS, F.R.NOTE CIRCULATION, CASH RESERVES AND RESERVE RATIOS, 1920-1921 PER CENT ACTUAL RESERVE: RATIOS ADJUSTED 70 60 50 1 1 *••—«* _/ I \ / 30 1 10 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 200 200 DEPOSITS 150 150 100 mi i mm mn. m m1i i i i •%% 4,100 W i W. 50 11 50 l WA i WA O O 350 350 ir. R. NOTE CIRCULATION 3OO 300 250 i w 250 7ff 200 mmm IN P 4,y1 i w. 200 150 %% m 1 H i i p, 1150 1 5 0 0 0 m 1 i I i i i i w % i W w s, , M w, f,4, 1 5 0 0 0 WA 0 O 500 500 DEPOSIT AND F.R.NOTE LIABILITIES, L, AND TOTAL RESERVES, C 450 45O 400 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50 O O Adjusted percentages are calculated after reducing or increasing reserves held by the amount of accoraoodation received from or extended to other Federal Reserve banks. The deposit curve is based on "net deposits" up to Inarch 11, 19^1, and on "total deposits" thereafter. 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.] Total discounted and purchaed Discounted paper. Purchased paper. paper. Month. Total. o S b e G l c i m o g u v a r e e t e r i d i r o t n b n - y 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 . - l t i A u v p r e g a a - r p s l i c t e a o u r n c . l d - k 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 S CO January 205,933 143, 484 526 1,547 9,556 50,820 8,674 8,443 175 56 214,607 266,495 179,089 o February 163,788 105,785 603 979 7,775 48,646 29,765 27,797 1,883 85 193, 553 178,605 180,760 March 299,274 212,976 1,165 1,980 9,670 73,483 7,382 6,697 564 121 306, 656 282,287 185,720 April 290,265 219,556 504 2,067 11, 556 56, 582 5,136 4,907 155 74 295,401 361,506 191,237 May 337,203 271,485 381* 2,309 11,249 51,779 8,570 7,690 735 145 345,773 336, 827 193, 278 June 338,662 262,177 433 2,325 11,419 62,308 6,928 6,691 228 9 345,590 252,860 179, 590 July 226,647 156,030 464 1,749 8,638 59,766 5,393 5,271 75 47 232, 040 266,439 155, 481 August 186,605 119,439 982 7,467 58,712 7,128 6,548 580 193,733 250,761 154,023 September 179,651 110,907 149 808 4,884 62,903 6,983 6,353 574 56 186,634 289,657 185,401 October 219,192 135,709 134 744 6,213 76, 392 6,507 6,144 .363 225,699 262,023 230,030 November 186,657 123,159 203 279 5,151 57, 865 16,460 15, 892 568 203,117 251,126 216,189 December 189,141 98,690 25 1,119 5,953 83,354 21, 535 20, 710 685 140 210,676 331,906 246, 093 Total. 1921. 2, 823,018 1, 959,397 4,592 16, 888 99,531 742, 610 130,461 123,143 6,585 733 2,953,479 1920. 2,965, 647 2,120,625 33,608 24,800 364, 845 346,997 4,281 13,567 3,330,492 1919. 1,951, 082 1, 745, 959 365 10,84G 786,614 345,829 337, 526 271 8,032 2, 296, 891 193, 898 j Q Ua H—Il o Or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

676 REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE 4.—EARNINGS AND EXPENSES. 1921 1920 1919 EARNINGS. Discounted bills $7,965,583 $8, 259.664 $3,667,951 Purchased bills 825,577 3,890,556 2,870,368 United States securities 236,876 322,787 238,385 Transfers—net earnings 87,707 178,410 Deficient reserve penalties. 130,254 130,157 65,970 Miscellaneous 26,123 15,797 140 Total earnings. 9,184,413 12,706,668 7,021,224 CURRENT EXPENSES. Salaries: Bank officers 225,480 188,017 136,807 Clerical staff 1, 687,043 1,018,812 491,627 Special officers and watchmen 74,174 33,150 13,757 Allother 88,954 38, 691 19,005 Governors' conferences 1,407 1,272 2,498 Federal Reserve Agents' conferences 1,929 1,683 1,105 Federal Advisory Council : 2,312 1,417 2,594 Directors' meetings 12, 413 11,099 7,223 Traveling expenses i 35,115 32,193 16,729 Assessments for Federal Reserve Board expenses 52,375 45, 964 33, 790 Legal fees 6, 509 4,545 3,199 Insurance (life, fidelity, casualty, workmen's compensation, and general liability) 65,733 36,197 20,636 Banking house: Taxes and fire insurance 6,773 Light, heat, and power 7,488 R A e ll p o a t i h rs e r and alterations 25,497 108,927 46, 494 Rent, including light, heat and power, and minor alterations 137,766 Fire insurance—Furniture and equipment 2,233 Furniture and equipment 155,031 202,751 119,671 Printing and stationery (including office and other supplies) 205,095 178,489 88,080 Telephone 16,915 10,415 4,912 Telegraph 100,108 70, 615 27,929 Security shipments 13, 008 Currency and coin shipments 60,262 130,105 98, 205 Postage and expressage (other than on money and security shipments). 101, 666 Federal Reserve currency Original cost, including shipping charges 498, 762 219,398 187,486 Cost of redemption, including shipping charges 74, 963 40, TOO 28,411 Taxes on Federal Reserve Bank note circulation. 43, 485 46, 283 35,400 All other expenses 113, 438 81, 963 46,197 Total current expenses. 3,816,964 2,502, 586 1, 431,755 Current net earnings 5, 367,449 10,204, 082 5,589,469 PROFIT AND LOSS ACCOUNT. Earnings 9,184,413 12,706, 668 7,021,224 Current expenses. 3, 816, 964 2, 502, 586 1,431,755 Current net earnings.. 5,367,449 10, 204,082 5, 589,469 Additions to current net earnings: Amounts deducted from reserve for depreciation on United States bonds 78,876 27 Assessment account expenses Federal Reserve Board, previously charged to profit and loss 45,964 All other 1,497 417 967 Total additions. 80,373 46,381 994 Deductions from current net earnings: Depreciation allowances on bank premises 16,512 123,570 168,625 Reserve for possible losses 500,000 Assessment account expenses Federal Reserve Board. 12,658 33,306 All other 10, 810 5,412 1,172 Total deductions 527,322 141,640 203,103 Net deductions from current net earnings. 44), 949 95,259 202,109 Net earnings available for dividends, surplus, and franchise tax 4, 920,500 10,108,823 5,387,360 Dividends paid 435,361 384,713 296,161 1,254,824 6,654,855 5,091,199 Transferred to surplus account 3,230,315 3,069,255 Franchise tax paid United States Government i Other than those connected with governors' and agents' conferences and meetings of directors and of the advisory council. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT NO. 12—SAN FRANCISCO. 677 SCHEDULE 5.—CURRENCY RECEIPTS PROM AND PAYMENTS TO MEMBER AND NON- MEMBER BANKS. [In thousands of dollars.] Receipts. Payments. Total receipts. Total pajonents. Month. From To From non- To nonmember mem- member mem- 1921 1920 1919 1921 1920 1919 banks. ber banks. ber banks. banks. January 56,204 591 36,876 1,436 56,795 36,250 30,291 38,312 13,518 7,855 February 38,430 660 32,528 1,514 39,090 20,714 15,783 34,042 18, 883 9,817 March 43,718 1,276 32,702 1,188 44,994 24,788 15,051 33,890 24, 953 11,248 April 38,646 560 34,249 2,926 39,206 24,884 14, 303 37,175 38,388 15,312 Mav 40,195 1,694 45,658 1,170 41, 889 25,310 18,289 46,828 30,531 14,096 June 41,918 532 34,327 1,349 42,450 27,933 16,747 35,676 44,271 14,941 Juiv. 45,798 385 52,277 557 46,183 38, 471 22, 918 52,834 45,032 15,715 August 38,999 582 29,359 273 39,581 28,343 15,067 29,632 50,626 21,266 September 37,760 314 40,216 2,711 38,074 30, 899 16,299 42,927 57,917 23,325 October 36,875 563 43,263 773 37, 438 31,454 19,908 44,036 49,918 21,603 November 38,339 1,074 34,258 469 39,413 31,482 15,618 34,727 57,104 29,848 December 48,817 473 75,249 653 49,290 58,222 24,820 75,902 67,678 30,555 Total, 1921.. 505,699 8,704 490, 962 15,019 514,403 505,981 1920.. 356,823 21,927 382,241 116,578 378,750 498, 819 1919.. 210,590 14,504 201,870 13,711 225,094 215,581 SCHEDULE 6.—OPERATIONS OF FEDERAL RESERVE CLEARING SYSTEM. [Figures include cash items only.] [Numbers in thousands; amounts in thousands of dollars.] Items drawn on banks in own district. Items drawn on Located in Federal Located outside Treasurer of Reserve Bank Federal Reserve United States. Period. and branch cit- Bank and ies. branch cities. N b u e m r. - Amount. •N b u e m r. - Amount. N b u e m r. - Amount. Jan. 1 15 291 159 003 1 137 97 950 81 62 424 Jan. 16- Feb. 15 605 292' 696 2 177 163' 455 143 81 784 Feb. 16-Mar. 15 553 288,490 2,034 153,382 148 128,193 Mar. 16-Apr. 15. 801 339 594 2,405 176,224 172 132,150 Apr. 16-May 15 721 303 146 2 155 158 539 173 75 831 May 16-June 15 776 307, 792 2,294 165,908 188 127, 867 June 16-July 15, . . 726 298,546 2,204 158,489 178 117,237 July 16-Aug. 15 765 287,355 2,164 158,601 185 90,903 Aug. 16-Sept. 15 760 303,019 2,282 167,365 189 123 390 Sept. 16-Oct. 15 791 337,895 2,526 188,667 188 114,923 Oct. 16-Nov. 15 .. 814 331 777 2 619 199 230 185 95 846 Nov. 16-Dec. 15 853 347,977 2,772 206,320 191 88,687 Dec. 16-Dec. 31 447 182,905 1,417 97,673 85 80,629 Total, 1921 8,903 3,780,195 28,186 2,091 803 2,106 1,319 864 1920 5,175 3,910, 813 20,277 1,908, 843 1,523 1,726, 996 85227—22- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

678 REPORT OF THE FEDERAL RESERVE BOARD. SCHEDULE 6.—OPERATIONS OP FEDERAL RESERVE CLEARING SYSTEM—Contd. [Figures include cash items only.] % [Numbers in thousands; amounts in thousands of dollars.] Items forwarded to other Federal Reserve banks Total number.* Total amount.1 and their Period. branches. Number. Amount. 1921 1920 1921 1920 Jan. 1-15 99 21,311 1,608 S32 340,688 303,927 Jan. 16-Feb. 15.. 176 39,672 3,101 1,730 577,607 539,796 Feb. 16-Mar. 15. 165 38,018 2,900 1,922 608,083 579,441 Mar. 16-Apr. 15. 182 42,292 3,560 2,114 690,260 828,641 Apr. 16-May 15.. 152 35,294 3,201 2,017 572,810 559,536 May 16-June 15.. 150 35,490 3,408 2,096 637,057 648,229 Junel6-July 15.. 149 32,304 3,257 2,219 606,576 755,938 July 16-Aug. 15. 147 31,234 3,261 2,331 568,093 603,105 Aug. 16-Sept. 15. 145 33,173 3,376 2,606 626,947 666,956 Sept. 16-Oct. 15. 145 26,501 3,650 2,736 667,986 726,795 Oct. 16-Nov. 15. 154 27, 884 3,772 2,792 654, 737 690,966 Nov. 16-Dec. 15. 161 28,746 3,977 3,071 671, 730 812,977 Dec. 16-Dec. 31.. 103 15,245 2,052 1,714 376,452 403. 774 Total, 1921 1,928 407,164 41,123 7,599,026 1920 1,205 573,429 28,180 8,120,081 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

PART III. RECOMMENDATIONS OF THE FEDERAL ADVISORY COUNCIL TO THE FEDERAL RESERVE BOARD • FOR THE YEAR 1921. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS AND MEMBERS OF THE FEDERAL ADVISORY COUNCIL FOR THE YEAR 1921. OFFICERS. President, L. L. RUE. Vice President, PAUL M. WARBURG. Secretary, HARRY L. HILYARD. EXECUTIVE COMMITTEE. L. L. RUE. J. J. MITCHELL. PAUL M. WARBURG. F. O. WATTS. PHILIP STOCKTON. E. F. SWINNEY. MEMBERS. PHILIP STOCKTON, Federal Reserve District No. 1. PAUL M. WARBURG, Federal Reserve District No. 2. L. L. RUE, Federal Reserve District No. 3. C. E. SULLIVAN, Federal Reserve District No. 4. J. G. BROWN, Federal Reserve District No. 5. E. W. LANE, Federal Reserve District No. 6. J. J. MITCHELL, Federal Reserve District No. 7. F. 0. WATTS, Federal Reserve District No. 8. C. T. JAFFRAY, Federal Reserve District No. 9. E. F. SWINNEY, Federal Reserve District No. 10. R. L. BALL, Federal Reserve District No. 11. D. W. TWOHY,1 Federal Reserve District No. 12. RECOMMENDATIONS OF THE FEDERAL ADVISORY COUNCIL TO THE FEDERAL RESERVE BOARD, FEBRUARY 22, 1921. TOPIC NO. 1.—Should the Board exercise the authority given it in section 16 of the Federal Reserve Act and impose an interest charge against Federal Reserve Banks on the amount of their Federal Reserve notes outstanding, less the amount of gold or gold certificates held by the Federal Reserve Agents as collateral security; and if so, what should the rate of interest be? Recommendation.—The council voted unanimously in the negative. The council is of opinion that the argument of excessive earnings should not impel the Board to exercise its authority to> impose an interest charge against Federal Reserve Banks on theamount of Federal Reserve notes outstanding. The council believes that if an educational campaign is carried on stating that the earnings of the Federal Reserve Banks are used for the purpose of reducing the amount of Government bonds outstanding, particularly the Liberty loan and Victory notes, it would dissipate any unwarranted criticism concerning excessive earnings made by Federal Reserve Banks, and that it would not be difficult to convince the people that the earnings of the banks could not be used to any better purpose. 1 Appointed Oct. 11,1921, vice A. L. Mills, resigned. 681: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

682 REPORT OF THE FEDERAL RESERVE BOARD. In this connection and with the same point in view the council expressed itself unanimously against the proposition to permit the Sayment of interest on member banks' reserve balances with Federal Reserve Banks. The high profits of the Federal Reserve Banks should not, in the opinion of the council; lead to the payment of interest on balances which in the best interest of the system should be kept uninvested as far as may be practicable. If interest were paid it would act as a stimulant toward keeping the funds of the Federal Reserve Banks invested and it might therefore interfere with the proper conception on the part of those in charge of the Federal Reserve Banks, concerning their first duty to keep the Federal Reserve Banks in a condition of maximum strength. TOPIC No. 2.—Should the Board establish for the year 1921 a tentative limit for each Federal Reserve Bank on the amount which it may rediscount with other Federal Reserve Banks ? Recommendation.—The vote of the council was unanimously in the negative. The council's opinion is that no limit should be placed on the amount which one Federal Reserve Bank may rediscount with other Federal Reserve Banks. The Federal Reserve System is one and indivisible and not 12 independent districts. The council holds the view that the Board should exercise its own discretion and should not limit its own power of action by binding itself to definite rules, which, with conditions varying in the several districts and strongly fluctuating at this time, might fit one condition and one period but might prove embarrassing in others. The council believes, however, that where Federal Reserve Banks are fairly regular rediscounters with other Federal Reserve Banks their discount rates should not be permitted to be lower than those prevailing with the Federal Reserve Banks granting the rediscounts. TOPIC NO. 3.—Should existing preferential rates on notes secured by Liberty bonds and Victory notes be continued ? (a) With respect to customers' paper rediscounted ? (6) With respect to member banks' 15-day collateral notes? Recommendation,—The council is of opinion that for the time being it may be opportune to continue preferential rates on notes secured by Liberty bonds and Victory notes, both (a) in respect to customers' f>aper discounted and (b) in respect to member banks' 15-day colateral notes, but such preferential rates should be discontinued as soon as it can be done advantageously and without injustice. TOPIC NO. 4.—Section 14 permits any Federal Reserve Bank under rules and regulations to be prescribed by the Federal Reserve Board to purchase and sell in the open market cable transfers and bankers' acceptances and bills of exchange of the kinds and maturities by this act made eligible for rediscount with or without the indorsement of a member bank. Section 13 provides that "any Federal Reserve Bank may discount acceptances of the kinds hereinafter described, which have a maturity at the time of discount of not more than three months' sight, exclusive of days of grace, and which are indorsed by at least one member bank." Counsel is of opinion that the words " of the kinds and maturities by this act made eligible for rediscount," in section 14, apply only to bills of exchange which therefore can not be bought where they have Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECOMMENDATIONS OF ADVISORY COUNCIL. 683 a maturity of more than three months, but that they do not apply to bankers' acceptances, and that consequently the Federal Reserve Board might legally issue regulations permitting the purchase by Federal Reserve Banks of bankers' acceptances of six months' maturity. As a matter of sound banking policy does the council advise the Board to issue such a regulation ? Recommendation.—The council voted unanimously to advise the Board that in its opinion it should permit Federal Reserve Banks to purchase bankers' acceptances drawn for the purpose of financing the importation and exportation of goods having a maturity up to six months. The council understands that the Board has expressed its preference by ruling to have accepting banks, in cases where the transactions extend over a period in excess of three months, grant acceptance credits in the form of acceptances running as nearly as may be possible over the whole period involved in the liquidation of such transactions, not to exceed six months, rather than favoring the granting of acceptance credits extending over ninety days with the privilege of one renewal. This ruling will force the accepting banks * to issue their acceptances for periods in excess of three months, and it is most important that these acceptances when offered in foreign markets or in the United States should find a ready market and should not be penalized by being offered as ineligible bills. It is claimed that the open market might absorb these bills, but the rate for them in that case would be so unfavorable, and moreover the confidence in their ready salability would be so much weakened by the mere fact that the Federal Reserve Banks would not be regular purchasers of this class of paper, that it would seriously impair the ability of American banks to establish themselves in foreign markets as acceptance bankers able to compete with England. In our opinion it is no more than logical and right for the Board to follow up its ruling with the granting of the power to Federal Reserve Banks to purchase eligible acceptances financing the importation and exportation of goods and having a maturity of from three to six months. TOPIC NO. 5.—Under authority given in section 13 of the Federal Reserve Act the Board has authorized member banks to accept drafts or bills of exchange having not more than three months' sight to run, drawn by banks or bankers in Central American and South American countries for the purpose of furnishing dollar exchange as required by the "usages of trade" in those countries. Within the past few days the Board has authorized member banks to accept drafts in the same manner for banks or bankers in Australia, New Zealand, and other Australasian dependencies, having received assurance that there is now a "usage of trade" in these dependencies which requires dollar exchange. Will the "usages of trade" in European countries likely lead to requests for the extension of these privileges to those countries, and if so, what should the policy of the Board be in regarding such applications ? Recommendations.—The council expressed itself unanimously in favor of indorsing the Board's action in authorizing member banks to accept dollar exchange drafts for banks in Australasia in addition to the authority already granted them to accept in like manner for banks in Central and South American countries. With respect to the question asked by the Board whether such power should be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

684 REPORT OF THE FEDERAL RESERVE BOARD. extended to banks in European countries the council is of opinion that this should not be done. The council does not favor the granting of this power to countries where there exists a system of a large number of highly developed banks of great financial strength which could easily issue drafts for the purpose of furnishing exchange to an extent which might become embarrassing to the Federal Reserve System, and moreover it would appear impossible in these countries where stock exchange and financial transactions are highly developed to provide for safeguards which would prevent the abuse of facilities so offered by financing stock exchange loans and other financial transactions not directly involved in export or import operations; nor does it appear that in the exportations of Europe to the United States there are regular seasonal movements which would warrant the drawing of finance drafts in anticipation of exportations such as exist in the United States with respect to cotton or similar crops. The council feels that the power to accept for the furnishing of dollar exchange should be restricted to such colonial countries and dependencies and countries on this hemisphere as, after proper investigation, may seem entitled to the granting of the privilege. ADDITIONAL RECOMMENDATIONS. TOPIC NO. 6. Recommendation.—Resolved, That in view of the grave economic conditions abroad and the influence they will exercise upon the future trend of American commerce and trade, it is the sense of this council that it might be advisable for the Federal Reserve Board to appoint a suitable representative to visit European countries for the purpose of making a thorough first-hand investigation and report of the social, economic, and financial situation of those countries. TOPIC NO. 7.—The council wishes to go on record again that in their opinion the office of the Comptroller of the Currency should be abolished and the duties pertaining to this office should be taken over by the Federal Reserve Board and that the number of appointive members of the Board be increased from five to six. The council favors the creation of the office of an Undersecretary of the Treasury in charge of financial matters who would take the place of the Secretary of the Treasury as an ex officio member of the Federal Reserve Board, the governor of the Federal Reserve Board, who would act as its chairman, to be chosen by the Board itself from its appointive members. Resolved, That the executive committee, or a subcommittee, not exceeding four, of which the president and vice president shall be members, to be appointed by the president, communicate these views of the council to the incoming Secretary of the Treasury and to the chairman of the proper committees of Congress and that it point out the importance, pending the proposed legislation, of appointing a comptroller of the currency who could qualify as a member of the Board in case amendments on lines as proposed should be enacted. Resolved further, That the executive committee or said subcommittee be hereby authorized and instructed to take such further steps to aid in the attainment of the aims above outlined as it may deem proper. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

KECOMMENDATIONS OF ADVISORY COUNCIL. 685 TOPIC NO. 8.—With respect to discount rates it was resolved that the council does not favor at this time the reduction of any discount rates. TOPIC NO. 9.—-The council suggested to the Board the cancellation of the rediscount rate for bankers' acceptances. Rediscount rates for bankers'*acceptances now in force appear inoperative and anomalous in their relation to one another and to the open-market rates for bankers' acceptances. A rediscount rate for bankers' acceptances, if established at all, should logically be higher than the open-market rate for such paper. TOPIC NO. 10.—-The council urges upon Congress the necessity of the immediate enactment of legislation authorizing the Treasury to pay over to the railroads the sums due them, obviating the delay in those payments which at present seriously hampers the entire banking situation. The following members of the Federal Advisory Council were present at this meeting: Messrs. Paul M. Warburg, vice president, in the chair; C. E. Sullivan, Edward W. Lane, J. J. Mitchell, F. O. Watts, C. T. Jaffray, E. F. Swinney, R. L. Ball, A. L. Mills, and Merritt EL Grim, secretary. Recommendations of the Federal Advisory Council to the Federal Reserve Board, May 17, 1921. TOPIC NO. 1.—What considerations should be taken into account in formulating the rate policy of the Federal Reserve System ? Recommendation.—The following should be taken into consideration: 1. The reserves of the Federal Reserve System as a whole. 2. The reserve position of the Federal Reserve Bank whose rate it is contemplated to change. 3. The condition of all the banks of the country as a whole, and of the several Federal Reserve districts. 4. The economic and financial condition of this country. 5. World conditions, both economic and political. 6. The eventual establishment of a credit rate policy for the Federal Reserve Banks by which the rediscount rate to member banks is higher than the prevailing commercial rate, taking due consideration of the prevailing open-market rates for various classes of loans both in this country and abroad. 7. Uniformity of rates, while at times practicable and desirable, should not be adopted as a fixed policy, the system being predicated upon the principle that varying conditions might exist in different sections of the country. TOPIC NO. 2.—Do conditions warrant any modification of existing policy at present time and should any changes of rates be made in any districts? Recommendation.—Since the question was submitted to the council, changes in rates have already been inaugurated. The council does not feel it can give intelligent advice for future action until the international situation is clarified. The council feels that the far-reaching liquidation of loans, the contraction of circulation, and the strength- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

686 REPORT OF THE FEDERAL RESERVE BOARD. ening of the reserve position of the Federal Reserve Banks are most important steps in the healing process through which the country has been going. The Federal Reserve Board is to be congratulated on the leading part it has played in this connection. The recession of prices has gone far toward the reestablishment of a sound business basis. It still remains a matter of doubt, however, whether this readjustment has completed its course. The real turning point, in the council's view, can not be expected to be at hand until the European situation is further cleared up. Until the European purchaser returns as an important factor into our markets, easy money rates alone can not bring effectual relief in moving our goods. The council believes, therefore, that a future discount policy can not yet be suggested. The council respectfully suggests that under the law it has the power, which involves an obligation, to keep itself informed concerning the operation of the Federal Reserve System, and to advise with the Board concerning the same. In the exercise of these duties it may convene whenever it deems advisable. In order to be able to act promptly, the council has organized an executive committee, a majority of which can be called together at the shortest possible notice. The council realizes, of course, where requests for action upon changes of discount rates emanate from individual Federal Reserve Banks, that the Federal Reserve Board must act promptly. But where the direction for a change of policy with respect to discount rates emanates from the Federal Reserve Board, or where there is ample time for consultation, the council stands always ready to convene, or have its executive committee act in its behalf, in order to keep itself advised and to express its views with respect to the questions in hand; and it will be pleased to have the Federal Reserve Board avail itself freely of its services. TOPIC NO. 3.—Should the present differential in favor of loans secured by Government collateral be continued ? If not, should rates on such loans be uniform in all districts ? Recommendation.—The council is of opinion that for the time being it may be opportune to continue preferential rates on notes secured by Liberty bonds and Victory notes, both (a) in respect to customers' paper discounted and (b) in respect to member banks' 15-day collateral notes, but such preferential rates should be discontinued as soon as it can be done advantageously and without injustice to original subscribers. TOPIC NO. 4.—Should there be progressive rates ? Should they be discontinued in the two districts in which they are now in effect, and if continued, should a maximum rate be established beyond which there shall be no progression ? Recommendation.—It seems no longer desirable to continue the policy of progressive rates, but if any of the Federal Reserve Banks find it desirable to use progressive rates, it would be well to establish a maximum rate. TOPIC NO. 5.—Should Federal Reserve Banks pay out gold certificates in order to prevent undue increase in reserves ? Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECOMMENDATIONS OF ADVISORY COUNCIL. 687 Recommendation.—Conditions do not justify Federal Reserve Banks paying out gold certificates in order to prevent an increase in reserves. The council is of the opinion that high gold reserves do not constitute any danger, provided the Federal Reserve Board and the various Federal Reserve Banks continue a conservative policy in regard to granting loans and bear in mind that the present plethora of gold may be only of a temporary nature, and that before the war central banks abroad did not consider a gold reserve of 60 or 70 per cent as abnormal or excessive. It is apt to be forgotten that the 40 per cent limit fixed by the Federal Reserve Act was put into the law as a minimum of reserve to be maintained. Education of the public in these respects is desirable and recommended by the council. TOPIC NO. 6.—Should a policy be established for the entire system in regard to the kinds of money to be paid out by Federal Reserve Banks in response to demands of member banks for currency ? Recommendation.—A policy as nearly uniform as practicable in regard to the kind of money to be paid out by the Federal Reserve Banks should be established for the entire system. TOPIC NO. 7.—Should steps be taken to discontinue entirely paying out Federal Reserve Bank notes ? Recommendation.—Federal Reserve Bank notes have been issued in substitution of the silver certificates which have been previously withdrawn, and as the issue of silver certificates increases, because of the purchase of silver under the provisions of the Pittman Act, there will be an automatic decrease of the issue of Federal Reserve Bank notes, and this latter issue should eventually be retired. TOPIC NO. 8.—Should reserves of Federal Reserve Banks be based, as far as possible, upon holdings of gold coin and gold certificates, eliminating silver certificates and legal tenders by paying them out in lieu of Federal Reserve notes % Recommendation.—The reserves of the Federal Reserve Banks should be based on gold, gold certificates, and legal tender notes, eliminating silver certificates as rapidly as this may safely be done, and bearing in mind that ultimately excess earnings of Federal Reserve Banks may possibly be applied for the purpose of placing the legal tender notes on a 100 per cent gold basis. TOPIC NO. 9.—Discussion of the policy of Federal Reserve Banks as to rediscounting paper, the eligibility of which may be doubtful on account of condition statements of makers and discussion of feasibility off adopting a uniform policy for all Federal Reserve Banks. Recommendation.—In normal times the policy of the Federal Reserve Board, the Federal Reserve Banks, and their regulations should tend toward establishing a high standard of paper which the Federal Reserve Banks may accept. Under existing circumstances the policy of the Federal Reserve Banks should be to avoid the application of technical rules in determining the eligibility of paper. The present tendency should be to accept paper tendered for relief of a real situation, even though the paper in some respects does not conform fully to previous standard requirements. In no case, however, should Federal Reserve Banks be permitted to discriminate against paper of a legitimate industry as a class. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

688 REPORT OF THE FEDERAL RESERVE BOARD. TOPIC NO. 10.—Discussion of so-called "direct action"—that is, policy of applying pressure upon borrowing member banks to compel their customers to liquidate. Recommendation.—Liquidation has progressed to the point where it is no longer necessary merely for the purpose of improving the reserve position of the Federal Reserve System. " Direct action'* should be pursued only in unusual cases and for specific reasons. ADDITIONAL RECOMMENDATIONS. Recommendation No. 11.—It has been called to the council's attention that Form 8-H-231, entitled u Bankers' acceptance questionnaire/7 is being sent to accepting banks by Federal Reserve Banks of other districts. This is one of trie illustrations of procedure that is helping to make the acceptance business cumbersome. The council reiterates the recommendation made at its last meeting to the effect that the Federal Reserve Board should engage the services of one or more experts in the acceptance business in districts where acceptances originate, whose duty it should be to keep in touch with accepting bankers, and by personally conducting investigations from time to time, acquaint themselves with the methods observed by accepting banks. In this manner these officers could be trained to use discrimination and discretion in dealing with individual cases, instead of obligating the Board to issue rigid and comprehensive regulations, which may interfere with and make unduly cumbersome legitimate business. Moreover, it is impossible for the American bankers' acceptance to establish itself in competition with the British sterling acceptance in world markets if the foreign drawer is bewildered by a mass of regulations which he has to understand fully if he is to be certain that he is issuing an eligible bill which will find a ready market in the United States. The simpler the regulations the better the opportunity for the American bankers' acceptance to become a credit instrument in world markets. If there are competent men whose discretion may be relied upon in charge of the supervision of American acceptors, there is no need for attempting to control by detailed regulations the practice of American accepting banks and bankers. Recommendation No. 12.—It is important, if we are to have a free discount market in the United States, that national banks should be encouraged to indorse bankers' acceptances as freely as they would long bills on London, which they may indorse under section 5202 without the liability incurred under such indorsement being counted within the 100 per cent limit. The council recommends that section 5202 be amended by striking out the words "payable abroad" in clause 7 of this section, making it to read as follows: Seventh, liabilities created by the indorsement of accepted bills of exchange actually owned by the indorsing bank and discounted at home or abroad. Recommendation No. 13.—The council furthermore suggests an amendment to section 13 of the Federal Reserve Act so as to permit member banks to guarantee letters of credit up to an aggregate amount of 50 per cent of their unimpaired capital and surplus. The council feels strongly that the guarantee of letters of credit is a power that should be given to member banks as fully as is exercised by them under the acceptance privilege. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECOMMENDATIONS OF ADVISORY COUNCIL. 689 Recommendation No. 14-—The council would respectfully advise that it has examined the following bills, S. 579, S. 831, H. K. 242, contemplating an amendment of section 9 of the Federal Reserve Act, and is of the opinion that no injustice is done to State member banks by the existing law, which should therefore not be changed. Recommendation No. 15.—At the meeting of the council in February the Federal Reserve Board requested the council to submit suggestions for the amendment of section 11 (c) of the Federal Reserve Act dealing with the tax applicable in case of reserve deficiencies. The council recommends that the Federal Reserve Board prepare and submit to Congress an amendment to section 11 (c) of the Federal Reserve Act providing that the Board shall be empowered to levy a graduated tax upon the amounts by which the reserve requirements of the act, both for notes and deposits, shall fall below 40 per cent. Such tax to be paid by the Federal Reserve Banks to the Government, but the Federal Reserve Banks shall not be required, as under the present law, "to add an amount equal to the said tax to the rates of interest and discount fixed by the Federal Reserve Board." The council would prefer to see the imposition of the tax contained in clause (c) entirely eliminated, inasmuch as a contraction of the rediscount operations of member banks with the Federal Reserve Banks can best be brought about by a proper increase in rediscount rates. For psychological reasons, however, it may be advisable to provide for the imposition of a tax, even though it will have to be borne by the Federal Reserve Banks, which, in turn, would recoup themselves by a corresponding increase in rediscount rates. The section as at present drawn is entirely impracticable, inasmuch as it taxes the note issue, but does not provide for a like penalty with respect to deposits. The tax should, however, affect rediscount operations, irrespective of whether they result in a check drawn against deposits or in a withdrawal of Federal Reserve notes. It is the loaning operation upon which the brakes should be applied, and it is from this point of view that the amendment here proposed has been devised, affecting with equal force note issue and deposits. Recommendation of the Federal Advisory Council to the Federal Reserve Board, June 21, 1921. AMENDMENT TO RECOMMENDATION NO. 14 OF THE MAY 17, 1921, MEETING. Referring to recommendation No. 14 made by the Federal Advisory Council to the Federal Eeserve Board on May 17, 1921, wherein the council expressed itself as being opposed to the enactment into law of bills S. 579, S. 831, and*H. R. 242, on further consideration of the provisions of Senate bill 831, the council is now in favor of the enactment of this bill into law. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

690 REPORT OF THE FEDERAL RESERVE BOARD. Recommendations of the Federal Advisory Council to the Federal Reserve Board, September 20, 1921. TOPIC NO. 1.—Should rates bear a direct relation to a Federal Reserve Bank's reserve or should they be established more with reference to the general money market ? Recommendation.—The council believes that rates should bear a direct relation to a Federal Reserve Bank's reserve and to the general money market, and in addition consideration should be given to the items enumerated in the council's recommendation of May 17, 1921, as follows: 1. The reserves of the Federal Reserve System as a whole. 2. The reserve position of the Federal Reserve Bank whose rate it is contemplated to change. 3. The condition of all the banks of the country as a whole, and of the several Federal Reserve districts. 4. The economic and financial condition of this country. 5. World conditions, both economic and political. 6. The eventual establishment of a credit-rate policy for the Federal Reserve Banks by which the rediscount rate to member banks is higher than the prevailing commercial rate, taking due consideration of the prevailing open-market rates for various classes of loans both in this country and abroad. 7. Uniformity of rates, while at times practicable and desirable, should not be adopted as a fixed policy, the system being predicated upon the principle that varying conditions might exist in different sections of the country. TOPIC NO. 2.—If the latter (the general money market), what factors should be considered in arriving at a conclusion as to what is the current rate for money? Among these factors are the following : (a) Rates charged by banks to their regular customers. (&) Rates for one-name paper bought through note brokers. (c) Open-market rates on bankers' acceptances, and id) Rates on Treasury certificates. Recommendation.—All the four items mentioned are important in determining the money market, but there may be other factors in a district which should likewise be given consideration. TOPIC NO. 3.—Is it important also to consider the effect of a change in the discount rate of a Federal Reserve Bank upon the ruling rate for money in its district ? Recommendation.—General business conditions and the reserve position of a Federal Reserve Bank are the important factors to be considered. The ruling rate for money in a district will adjust itself automatically to these conditions. ADDITIONAL RECOMMENDATIONS. Recommendation No. 4-—In response to the letter of Governor Harding, of the Federal Reserve Board, dated September 16, 1921, asking the council to give consideration to the subject of regulating inter-Federal Reserve Bank rediscount rates, the council reiterates Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BECOMMENDATIQNS OF ADVISORY COUNCIL. 691 its recommendation No. 1, paragraph 7, of the September, 1920, meeting as follows: 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 regard either for the profit or loss to the contracting banks. The council does not approve the adoption of either of the two regulations proposed in Governor Harding's letter of September 16, 1921. The council is of the opinion that a Federal Reserve Bank, while borrowing, should not lower its rate; but special conditions may exist in a district which may make a reduction desirable and justify such a course. Recommendation No. 5.—The council has observed with no little concern the increasing number of branches of Federal Reserve Banks and the tendency toward the expenditure of large sums of money for the erection of buildings for the housing of these branches. The council would recommend that the Federal Reserve Board do not approve the establishment of additional branches of Federal Reserve Banks until sufficient time has elapsed to demonstrate their need. The council would further recommend that where branches are already established, no expensive buildings be erected for their housing until their permanency and requirements have been fully demonstrated. The council unanimously adopted the following resolution: The council has noted that a striking and significant feature of events of the past year has been the unceasing and vigorously insistent demands from a variety of quarters that the Federal Reserve Board shape its policies and actions for the special benefit of particular classes or interests. Bills have been introduced in. Congress seeking to place on the Board members representing this or that industry, thus attempting to give exceptional facilities or privileges to particular classes. The council believes that this development is a most unfortunate and potentially dangerous one. The Federal Reserye Board rests under responsibilities and is charged with the performance of duties touching the very life of the business and finance of the country. The Bdard properly should have regard for sincere, intelligent, fair-minded public opinion, but it will succeed in its tasks only if it is in a position io decide the important questions and problems presented to it solely on the basis of their merits, irrespective of temporary popular expediency. The council also unanimously adopted the following resolution: The council wishes to go on record as opposed to attempts to put in office in Federal Reserve Banks men in place of those who have filled their positions with fidelity and efficiency. The council believes the system should be free from political influences of every kind, and that competent men should be continued in office. Recommendation of the Federal Advisory Council to the Federal Reserve Board, November 21, 1921. The Board brought to the attention of the council the matter of the increase in the reserves of the Federal Eeserve Banks, and the apparent approach of the time when, as a result of the liquidation of oorrowings by member banks, the Federal Reserve Banks will be seeking investment for their idle funds. The Board requested the council's opinion as to the wisdom of the Federal Reserve Banks investing these funds in United States Government bonds. The council stated that it is not disturbed by the fact that the earnings of the Federal Reserve Banks are decreasing because of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

692 REPORT OF THE FEDERAL RESERVE BOARD. accumulation of idle funds. The Federal Reserve Banks were not created for profit and the council is mindful of the fact that, as past experience has shown, times of temporary idleness of funds are bound to be followed by periods of greater demands for money, be they seasonal or emergency requirements. Whenever it may appear necessary for Federal Reserve Banks to seek investments in the open market, the council would recommend that preference be given to obligations such as: 1. Bankers7 acceptances. 2. United States certificates of indebtedness. 3. Such short-term State and municipal obligations as are permitted by the Federal Reserve Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DESCRIPTION OF FEDERAL RESERVE DISTRICTS. Land area Population, Federal Reserve district. (square Jan. 1, 1922 miles). (estimated). No. 1—Boston 61,345 7,239,139 No. 2—New York 51,890 13,534,987 ' No. 3—Philadelphia... 36,842 6,916,765 No. 4—Cleveland 73,424 10,244,456 No. 5—Richmond 152,314 9,990,845 No. 6—Atlanta 248,226 10,143,287 No. 7—Chicago 190,513 15,873,183 No. 8—St. Louis 194,810 9,206,164 No. 9—Minneapolis 414,004 5,229,693 No. 10—Kansas City.. 473,565 7,152,611 No. 11—Dallas 392,989 5,929,219 No. 12—San Francisco. 683,852 7,080,489 Total 2,973,774 108,540,838 FEDERAL RESERVE DISTRICTS. Land area Population, (square Jan. 1,1922 miles). (estimated). District No. 1—Boston. 61,345 7,239,139 Connecticut (excluding Fairfifild Cnnntv^ 4,189 1 098 8Q1 Maine 29 895 773,297 Massachusetts . 8 039 3 952 464 New Hampshire... 9 031 445 660 Rhode Island . 1 067 617'125 Vermont 9,124 351,702 District No. 2—New York 51,890 13,534,987 Connecticut (Fairfield Counts 631 New Jersey 3 605 9 ^1 984. Counties of: Bergen. Hunterdon. Morris. Sussex. Essex. Middlesex. Passaic. Union. Hudson. Monmouth. Somerset. Warren. New York 47,654 10,647,190 District No. 3—Philadelphia 36,842 6,916,765 Delaware 1 965 227 264 New Jersey 3,909 732'081 Counties of: Atlantic. Cape May. Mercer. Burlington. Cumberland. O cean. Camden. Gloucester. Salem. Pennsylvania 30,968 5,957,420 Counties of: Adams. Columbia. Luzerne. Potter. Bedford. Cumberland. Lycoming. Schuylkill. Berks. Dauphin. McKean. Snyder. Blair. Delaware. Mifflin. Sullivan. Bradford. Elk. Monroe. Susquehanna. Bucks. Franklin. Montgomery. Tioga. Cambria, Fulton. Montour. LTnion. Cameron. Huntingdon. Northampton. Wayne. Carbon. Juniata. Northumber- Wyoming. Center. Lacka wanna. land. York Chester. Lancaster. Perry. - Clearfield. Lebanon. Philadelphia. Clinton. Lehigh. Pike. 85227- 693 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

694 REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE DISTRICTS—Continued. Land area Population, (square Jan. 1, 1922 miles). (estimated). District No. 4—Clevelanc1 73,424 10,244,456 Kentucky (eastern part) 17,614 1,126,539 Counties of: Bath. Fleming. Lawrence. Nicholas. Bell. Floyd. Lee. Owsley. Boone. Garrard. Leslie. Pendleton. Bourbon. Grant. Letcher. Perry. Boyd. Greenup. Lewis. Pike Bracken. Harlan. Lincoln. Powell. Breathitt. Harrison. McCreary. Pulaski. Campbell. Jackson. Madison. Robertson. Carter. Jessamine. Magoffin. Rockcastle. Clark. Johnson. Martin. Rowan. Clay. Kenton. Mason. Scott. Elliott. Knott. Menifee. Whitley Estill. Knox. Montgomery. Wolfe. Fayette. Laurel. Morgan. Woodford. Ohio 40,740 5 963 810 Pennsylvania (western rm.rt^ 13,864 2^979,' 916 Allegheny. Crawford. Indiana. Venango. Armstrong. Erie. Jefferson. Warren. Beaver. Fayette. Lawrence. Washington. Butler. Forest. Mercer. Westmoreland. Clarion. Greene. Somerset. West Virginia (northern part) 1,206 174,191 Counties of: Brooke. Marshall. Tyler. Hancock. Ohio. Wetzel. District No. 5—Richmond 152,314 9,990,845 District of Columbia 60 459,511 Maryland 9,941 1,48l'452 North Carolina 48,740 2 631 809 South Carolina 30,495 *1J ,* 7\JU1 A8. * ,4\J\0Ji70 Virginia 40*262 2 360 189 West Virginia (southern nart/) 22,816 1 339*484 Counties of: Barbour. Hardy. Mingo. Roane. Berkeley. Harrison. Monongalia. Summers. Boone. Jackson. Monroe. Taylor. Braxton. Jefferson. Morgan. Tucker. Cabell. Kanawha. Nicholas. Upshur. Calhoun. Lewis. Pendleton. Wayne. Clay. Lincoln. Pleasants. Webster. Doddridge. Logan. Pocahontas. Wirt. Favette. McDowell. Preston. Wood. Gilmer. Marion. Putnam. Wyoming. Grant. Mason. Raleigh. Greenbrier. Mercer. Randolph. Hampshire. Mineral. Ritchie. District No. 6—Atlanta. 248,226 10,143,287 51,279 2 391 453 Florida 54,861 1,012,937 58,725 2,954,897 26,891 1,271,052 Parishes of: Acadia. Evangeline. Rapides. Tangipahoa. Allen. Iberia. St. Bernard Terrebonne. Ascension. Iberville. St. Charles. Vermilion. Assumption. Jefferson. St. Helena. Vernon. Avoyelles. Jefferson Davis. St. James. Washington. Beauregard. Lafayette. St. John the Bap- West Baton Calcasieu. Lafourche. tist. Rouge. Cameron. Livingston. St. Landry. West Feliciana. East Baton Orleans. St. Martin. Rouge. Plaquemines. St. Mary. East Feliciana. Pointe Coupee. St. Tammany. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DESCRIPTION OF FEDERAL RESERVE DISTRICTS. 695 FEDERAL RESERVE DISTRICTS—Continued. Land area Population, (square Jan. 1, 1922 miles). (estimated). District No. 6—Atlanta—Continued. Mississippi (southern narti _ 25,519 847,844 Counties of: Adams. Harrison. Lawrence. Scott. Amite. Hinds. Leake. Sharkey. Claiborne. Issaquena. Lincoln. Simpson. Clarke. Jackson. Madison. Smith. Copiah. Jasper- Marion. Stone. Covington. Jefferson. Neshoba. Walthall. Forrest. Jefferson Davis. Newton. Warren. Franklin. Jones. Pearl River. Wayne- George. Kemper. Perry. Wilkinson. Greene. Lamar. Pike. Yazoo. Hancock. Lauderdale. Rankin. Tennessee (eastern p<irt) 30,951 1,665,104 Counties of: Anderson. Giles. McMinn. Scott. Bedford. Grainger. Macon. Sequatchie. Bledsoe. Greene. Marion. Sevier. Blount. Grundy. Marshall. Smith. Bradley. Hamblen. Maury. Stewart. Campbell. Hamilton.1 Meigs. Sullivan. Cannon. - Hancock. Monroe. Summer. Carter. Hawkins. Montgomery. Trousdale. Cheatham. Hickman. Moore. Unicoi. : Claiborne. Houston. Morgan. Union. Clay. Humphreys. Overton. Van Bur en. Cocke. Jackson. Perry. Warren. Coffee. Jefferson. Piekett. Washington. Cumberland. Jobnson. Polk. Wayne. Davidson. Knox. Putnam. White. Dekalb. Lawrence. Rhea. Williamson. Dickson. Lewis. Roane. Wilson. Fentress. Lincoln. Robertson. Franklin. Loudon. Rutherford. District No. 7—Chicago. 190,513 15,873,183 Illinois (northern pai 35,448 5,402,428 Counties of: Boone. Ford. Livingston. Rock Island. Bureau. Fulton. Logan. Sangamon. Carroll. Grundy. McDonough. Schuyler. Cass. Plancock. McIIenry. Shelby. * Champaign. Henderson. McLean. Stark. • Christian. Henry. Macon. Stephenson. Clark. Iroquois. Marshall. Tazewell. Coles. Jo Daviess. Mason. Vermilion. Cook. Kane. Menard. Warren. Cumberland. Kankakee. Mercer. Whiteside. De Kalb. Kendall. Moultrie. Will. De Witt. Knox. Ogle. Winnebago. Douglas. Lake. Peoria. Wood ford. Du Page. La Salle. Piatt. Edgar. Lee. Putnam. Indiana (northern parti 26,707 2,376,360" Counties of: Adams. Fountain. Laporte. Ripley. Allen. Franklin. Madison. Rush. Bartholomew. Fulton. Marion. St. Joseph. Benton. Grant. Marshall. Shelby. Blackford. Hamilton. Miami. Starke. Boone. Hancock. Monroe. Steuben. Brown. Hendricks. Montgomery. Tippecanoe. Carroll. Henry. Morgan. Tipton. Cass. Howard. Newton. Union. Clay. Huntington. Noble. Vermilion. Clinton. Jasper. Ohio. Vigo. Dearborn. Jay. Owen. Wabash. Decatur. Jennings. Parke. Warren. Dekalb. Johnson. Porter. Wayne. Delaware. Kosciusko. Pulaski. Weils. Elkhart. Lagrange. Putnam. White. Fayette. Lake. Randolph. Whitley. Iowa 55,586 2,440,94 S 1 James County annexed to Hamilton County in 1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

696 REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RESERVE DISTRICTS—Continued. Land area Population, (square Jan. 1, 1922 miles). (estimated) District No. 7—Chicago—Continued. Michigan (southern j>art) 40,789 3,511,240 Counties of: Alcona. Eaton. Lapeer. Ogemaw. Allegan. Emmet. Leelanau. Osceola. Alpena. Genesee. Lenawell. Oscoda. Antrim. Glad win. Livingston. Otsego. Arenac. Grand Traverse. Macomb. Ottawa. Barrv. Gratiot. Manistee. Presque Isle. * Bay. Hillsdale. Mason. Roscommon. Benzie. Huron. Mecosta. Saginaw. Berrien. Tngham. Midland. SCClair. Branch. Ionia. Missaukee. St. Joseph. Calhoun. losco. Monroe. Sanilac. Cass. Isabella. Montcalm. Shiawassee. Charlev oix. Jackson. Montmorency. Tuscola. Cheboygan. Kalamazoo. Muskegon. Van Buren. Claire. Kalkaska. Newaygo. Washtenaw. Clinton. Kent. Oakland. Wayne. Crawford. Lake. Oceana. Wexford. Wisconsin (southern Dart/) . 31,983 2,142,207 Counties of: Adams. Green Lake. Marquette. Sheboygan. Brown. Iowa. Milwaukee. Vernon. Calumet. Jackson. Monroe. Wai worth. Clark. Jefferson. Oconto/ Washington. Columbia. Juneau. Outagamie. Waukesha. Crawford. Kenosha. Ozaukee. Waupaca. Dane. Kewaunee. Portage. Waushara. Dodge. Lafayette. Racine. Winnebago. Door. Langlade. Richland. Wood. Fond du Lac. Mamtowoc. Rock. Grant. Marathon. Sauk. Green. Marinette. Shawano. District No. 8—St. Louis 194,810 9,206,164 Arkansas. . 52,525 1, 788,823 Illinois (southern part.V 20,595 1,257,277 Counties of: Adams. Franklin. Macoupin. Randolph. Alexander. Gallatin. Madison. Richland. Bond. Greene. Marion. St. Clair. Brown. Hamilton. Massac. Saline. Calhoun. Hard in. Monroe. Scott. Clay. Jackson. Montgomery. Union. Clinton. Jasper. Morgan. Wabash. Crawford. Jefferson. Perry. Washington. Edwards. Jersey. Pike. Wayne. Effingham. Johnson. Pope. White. Fayette. Lawrence. Pulask:. Williamson. Indiana (southern part) 9,338 601,313 Counties of: Clark. Greene. Martin. Sullivan. Crawford. Harrison. Orange. Spencer. Daviess. Jackson. Perry. Switzerland. Dubois. Jefferson. Pike. Vanderburg. Floyd. Knox. Posey. Warrick. Gibson. Lawrence. Scott. Washington. Kentucky (western i:>art) 22,567 1,316,195 Counties of: Adair. Crittenden. Hopkins. Ohio. Allen. Cumberland. Jefferson. Oldham. Anderson. Daviess. Larue. Owen. Ballard. Edmonson. Livingston. Russell. Barren. Franklin. Logan. Shelby. Boyle. Fulton. Lyon. Simpson. Breckenridge. Gallatin. McCracken. Spencer. Bullitt. Graves. McLean. Taylor. Butler. Gray son. Marion. Todd. Caldwell. Greene. Marshall. Trigg. Calloway. Hancock. Meade. Trimble. Carlisle. Hardin. Mercer. Union. Carroll. Hart. Metcalfe. Warren. Casey. Henderson. Monroe. Washington. Christian. Henry. Muhlenberg. Wayne. Clinton. Hickman. Nelson. Webster. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DESCRIPTION OF FEDERAL RESERVE DISTRICTS. 697 FEDERAL RESERVE DISTRICTS—Continued. Land area Population, (square Jan. 1, 1922 mnes). (estimated). District No. 8—St. Louis—Continued. Mississippi (northern part) 20,843 941,437 Counties of: Alcorn. De Soto. Monroe. Tate. Attala. Grenada. Montgomery. Tippah. Benton. Holmes. Noxubee. Tishomingo. Bolivar. Humphreys. Oktibbeha. Tunica. Calhoun. Itawamba. Panola. L^nion. Carroll. Lafayette. Pontotoc. Washington. Cbickasaw. Lee. Prentiss. Webster. Choctaw. Leflore. Quitman. Winston. Clay. Lowndes. Sunflower. Yalobusha. Coahoma. Marshall. Tallahatchie. Missouri (eastern part^i 58,206 2,596,797 Counties of: Adair. Douglas. Maries. Reynolds. Audrain. Dunklin. Marion. Ripley. Barry. Franklin. Mercer. St. Charles. Benton. Gasconade. Miller. St. Clair. Bollinger. Greene. Mississippi. St. Francois. Boone. Grundy. Moniteau. St. Louis. Butler. Harrison. Monroe. St. Louis City. Caldwell. Henry. Montgomery. Ste. Genevieve. Callaway. Hickory. Morgan. Saline. Camden. Howard. New Madrid. Schuyler. Cape Girardeau. Howell. Oregon. Scotland. Carroll. Iron. Osage. Scott. Carter. Jefferson. Ozark. Shannon. Cedar. Johnson. Pemiscot. Shelby. Chariton. Knox. Perry. Stoddard Christian. Laelede. Pettis. Stone. Clark. Lafayette. Phelps. Sullivan. Cole. Lawrence. Pike. Taney. Cooper. Lewis. Polk. Texas. Crawford. Lincoln. Pulaski. "Warren. Dade. Linn. Putnam. Washington. Dallas. Livingston. Rails. Wayne. Daviess. Macon. Randolph. Webster. Dent. Madison. Ray. Wright. Tennessee (western part") 10, 736 704, 319 Counties of: Benton. Fayette. Henry. Shelby. Carroll. Gibson. Lake. Tipton. Chester. Hard eman. Lauderdale. Weakley. Crockett. Hard in. McNairy. Decatur. Haywood. Madison. Dyer. Henderson. Obion. District No. 9—Minneapolis 414,004 5,229,693 Michigan (northern partA 16,691 333,977 Counties of: Alger. Dickinson. Keweenaw. Menominee. Baraga. Gogebic. Luce. Ontonagon. Chippewa. Houghton. Mackinac. Schoolcraft. Delta. Iron. Marquette. Minnesota 80,858 2,451, 280 Montana 146,131 584,495 North Dakota 70,138 661,254 South Dakota 76,868 647,395 Wisconsin (northern •nart-.^ 23,273 551,292 Counties of: Ashland. Dunn. Oneida. Sawyer. Barron. Eau Claire. Pepin. Taylor. Bavfield. Florence. Pierce. Trempealeau. Buffalo. Forest. Polk. Vilas. Burnett. Iron. Price. Washburn. Chippewa. La Crosse. Rusk. Douglas. Lincoln. St. Croix. District No. 10—Kansas City 473,565 7,152,611 Colorado 103,658 968,595 Kansas 81,774 1,785,390 Missouri (western part) 10,521 830,067 Counties of: Andrew. Cass. Holt. Nodaway. Atchison. Clay Jackson. Platte. Barton. Clinton. Jasper. Vernon. Bates. -Dekalb. McDonald. Worth. Buchanan. Gentrv. Newton. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

698 REPORT OF THE FEDERAL RESERVE BOARD. FEDERAL RERERVE DISTRICTS—Continued. Land area Population, (square Jan. 1, 1922 miles). (estimated). District No. 10—Kansas City—Continued. Nebraska 76,808 1,317,829 New Mexico (northern nart"> 41,486 156,679 Counties of: Colfax. Rio Arriba. San Miguel. Union. McKinley. Sandoval. Santa Fe. Mora. San Juan. Taos. Oklahoma (part of) 61,770 1,889,671 Counties of: Adair. Ellis. Logan. Pontotoc. Alfalfa. Garfield. Love. Pottawatomie. Beaver. Garvin. McClain. Roger Mills. Beckham. Grady. Mclntosh. Rogers. Blame. Grant. Major. Seminole. Caddo. Greer. Mayes. Sequoyah. Canadian. Harmon. Murray. Stephens. Carter. Harper. Muskogee. Texas. Cherokee. Haskell. Noble. Tillman. Cimarron. Hughes. Nowata. Tulsa. Cleveland. Jackson. Okfuskee. Wagoner. Comanche. Jefferson. Oklahoma. Washington. Cotton. Kay. Okmulgee. Washita. Craig. Kingfisher. Osage. Woods. Creek. Kiowa. Ottawa. Woodward. Custer. Latimer. Pawnee. Delaware. Le Flore. Payne. Dewe-v. Lincoln. Pittsburg. Wyoming 97,548 204,380 District No. 11—Dallas.. 392,989 5,929,219 Arizona (southeastern nart) 23,412 125,765 Counties of: Cochise. Greenlee. Pima. Santa Cruz. Graham. Louisiana (northern narf> 18,518 556,736 Parishes of: Bienville. De Soto. Madison. Tensas. Bossier. East Carroll. Morehouse. Union. Caddo. Franklin. Natchitoches. Webster. Caldwell. Grant. Ouachita. West Carroll. Catahoula. Jackson. Red River. Wmn. Claiborne. La Salle. Rich land. Concordia. Lincoln. Sabme. New Mexico (southern nart.1) 81,017 210,480 Counties of: Bernalillo. Dona Ana. Lea. Roosevelt. Catron. Eddy. Lincoln. Sierra. Chaves. Grant. Luna. Socorro. ' Curry. Guadalupe, Otero. Torrence. De Baca. Hidalgo. Quay. Valencia. Oklahoma (southeastern nart1) 7,644 215,066 Atoka. Choctaw. Johnston. Marshall. Bryan. Coal. McCurtain. Pushmataha. Texas 262,398 , 4,821,172 District No. 12—San Francisco 683,852 7,080,489 Arizona (northwestern nart'i 90,398 235,138 Counties of: Apache. Maricopa. Navajo. Yavapai. Coconino. Mohave. Pinal. Yuma. Gila. California 155,652 3 643,028 Idaho 83,354 453,759 Nevada 109,821 76,488 Oregon 95,607 806,177 Utah 82*184 465,062 Washington 66,836 1,400,837 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS ——BOUNDARIES OF FEDERAL RESERVE DISTRICTS BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES ® FEDERAL RESERVE BANK CITIES • FEDERAL RESERVE BRANCH CITIES O FEDERAL RESERVE BANK AGENCY Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART I. Acceptances: Pa&e- Amounts discounted by Federal Reserve Banks 193 Amounts purchased by Federal Reserve Banks 199 Amounts purchased from other Federal Reserve Banks 217 Bankers'— Discount rates on 39,108 Discounted 193 Open-market purchases 199 Banks granted authority to accept up to 100 per cent of capital and surplus.. 331 Discount rates on 38,39,108,204 Earnings on 232 Holdings of 164,166,169 Maturities of 167, 207 Open-market purchases of 199 Regulation B 349 Rates, discount, on 38,39,108, 204 Rates of earnings on 175,178 Chart showing. 176 Regulation B—Opeh-market purchases 349 Trade- Discount rates 38,108 Discounted 192 Open-market purchases 199 Acts: Amending Federal Reserve Act 89, 351 Amending Clayton Act, proposed 356 Administrator, executor, etc., powers granted to national banks. (See Fiduciary powers.) Advisory Council, Federal. (See Federal Advisory Council.) Agricultural credit: Address of chairman of Joint Commission of Agricultural Inquiry 100 Loans to farmers 63-65 Agricultural paper: Amounts discounted 180 Discount rates on 33, 37,108 Holdings of, by Federal Reserve Banks 164 Amendment to Clayton Act, proposed.. 356 Amendments to Federal Reserve Act 89, 351 Anderson, Hon. Sydney: Address of, on financial and economic problems 100 Letter to, on expenses of Federal Reserve Banks 462 Architect for Federal Reserve Bank buildings 363 Area of Federal Reserve districts 693 Assessment for expenses of Federal Reserve Board 86, 232 Assets and liabilities. (See Resources and liabilities.) Atlanta par clearance case 68 Decision of Supreme Court 69, 357 Balance sheets. (See Condition statements.) Bank buildings 51-58, 362. 377 Depreciation of, method of charging off 49 Bank debits: 1919-1921 3, 24, 276-297 Chart showing 7 Index numbers. 11 New York City, 1919-1921 25 Bank notes. Federal Reserve. (See Federal Reserve Bank notes.) Bank premises of Federal Reserve Banks 51-58,144, 362, 377 Cost of 51,144, 377-381 701 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

702 INDEX TO PART I. Bankers'acceptances. (£<?€ Acceptances.) Page. Banking corporations, foreign 85 Bills discounted and purchased. (See Discount and open-market operations.) Bonds, United States. (See United States bonds.) Borrowings, excessive, by member banks 65 Branches of Federal Reserve Banks: Buildings for 51-58, 378 Directors and managers of. (See Federal Reserve Banks,'branches of.) Helena branch— Opened for business 80 Territory 80 Operations of 79, 80 Branches, foreign, of national banks 84 Buildings for Federal Reserve Banks 51-58, 362, 378 Cost of ".51, 378 Business conditions, conference of statisticians to discuss 87 Business, volume of, as indicated by debits to individual account, 1919-1921. 3, 11, 24, 276 Chart showing 7 Capital: Comparison betwreen, of member and nonmember banks 60 Federal Reserve Banks 15,16, 49,144 State bank members 60, 240-266 Cash reserves of Federal Reserve Banks. (See Reserves of Federal Reserve Banks.) Certificates of indebtedness. (See Treasury certificates of indebtedness.) Charts: Bank credit, gold reserves, and volume of business, 1919-1921. 7 Currency receipts and payments 138 Diagram of building operations of Federal Reserve Bank of New York 386 Deposits, Federal Reserve note circulation, cash reserves, and reserve ratio of Federal Reserve Banks 147 Federal Reserve note circulation, 1919-1921 2 Holdings of discounted bills and other earning assets 159 Index of foreign exchange, 1918-1921 84 Movement of earning assets of Federal Reserve Banks. 146 Percentage of nonmember banks to total number of banks 63 Rates of earnings on discounted and purchased bills 176 Reserve ratio of Federal Reserve Banks 28,156 Reserves of Federal Reserve Banks, 1919-1921 2 Interdistrict accommodation 213, 216 Check clearing and collection: Atlanta par clearance case 68 Opinion of Supreme Court 69, 357 Board's views as to practice of exacting exchange charges 71 Cases in courts of North Carolina and Kentucky in opposition to system... 70, 71 Gold settlement fund transactions 59, 221 Investigation of charges as to oppressive methods used 69 Meeting of representatives of Federal Reserve Banks to discuss interdistrict time schedule 87 Number and amount of all items handled by Federal Reserve Banks 73,228 Number of banks on par list 230 Operations of the system 68-72,228 Par list, number of banks on 230 State laws in opposition to system. 70 States in which banks collect exchange charges 71 Supreme Court decision in Atlanta par clearance case 69, 357 Clayton Act, Kern amendment to: Proposed amendment to 356 Report of committee on administration of 352 Review of work under 87 Clearing-house bank debits 3,11,24, 276-297 Collateral notes discounted 180 Collateral pledged as security for Federal Reserve notes 113,115 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART I. 703 Commercial paper: Page. Amounts discounted 180 Discount rates 33, 37,108 Holdings of 162 Rediscounts and sales between Federal Reserve Banks 208-216 (See also Discount and open-market operations.) Commodity paper, discount rates on 108 Condition statements: Comparison of changes in condition of member banks and Federal Reserve Banks 3 Federal Reserve Banks. 1,3,141-179 Accommodation received from or extended to other Federal Reserve Banks 42-45, 208-216 Bill holdings 141 Deposits 144,154,157 Chart showing 147 Detailed statement of condition on Dec. 31, 1921 148 Earning assets 2,141,157 Chart showing 146 Gold reserves 141 Holdings of— Discounted bills 8,12,141,158-164 Chart showing 159 Earning assets 173 Purchased bills 12,141,165-170 United States securities 141,171,172 Note circulation 2, 8,144,154,157 Rates of earnings 174-179 Chart showing 176 Reserve ratio 154 Reserves 2, 8,13,141,154,157 Chart showing 147,156 Resources and liabilities— By months 16 By weeks 141 Dec. 31, 1921 148 United States security holdings 141 Member banks .". 3,18-23 Abstract of condition reports 267-275 Counties in Federal Reserve districts 393-398 Credit, agricultural: Address of chairman of Joint Commission of Agricultural Inquiry 100 Loans to farmers 63-65 Crissinger, D. R., appointed member of Federal Reserve Board 86 Currency: * Receipts and payments 136,139 Chart showing 138 (See also Federal Reserve Bank notes; Federal Reserve notes.) Customers' paper discounted 180 Debits to individual accounts: New York City, 1919-1921 25 Years 1919-1921 3, 24, 276-297 Chart showing 7 Index numbers 11 Depositaries for Government funds. 79 Deposits: Demand, held by member banks 9,18, 21 Federal Reserve Banks 144,154,157 Chart showing 147 Government— Held by Federal Reserve Banks 14,16, 79,144 Held by member banks. 18, 21 Member banks' reserve 14,16,144 Reserve required against 154 Time, member banks 21, 22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

704 INDEX TO PART I. Page. Depreciation on bank buildings, method of charging off 49 Directors of Federal Reserve Banks: Conference of, to discuss credit situation 87 List of 342 Directory: Federal Advisory Council 349 Federal Reserve Banks 342 Federal Reserve Board 342 Discount and open-market operations of Federal Reserve Banks: Acceptances— Bankers'— Amounts discounted 193 Open-market purchases 199-203 Sales of, between Federal Reserve Banks 217 Trade- Amount discounted 192 Open-market purchases 199-203 Agricultural paper 164,180 Bills bought 16,199 Bills discounted—total 183 Bills discounted, by States 188 Bills discounted for State bank members 190 Bills discounted for national banks 190 Bills held by Federal Reserve Banks 12,16,141,158,164 1919-1921 3,6,8 Chart showing 7 Index numbers 10 Collateral notes discounted and held 162,164 Commercial paper discounted and held 162,164 Customers' paper discounted and held 162,164 Earnings, rates of 174 Holdings of discounted bills 2,141,158,160,162,164 Chart showing 159 Live-stock paper 164 Maturities— Acceptances bought 167, 200, 207 Bills discounted 160,184,198 Member banks— Amounts discounted for 190 Number accommodated 188,196 Municipal warrants purchased 16,180 National banks, bills discounted for 190 Open-market purchases 180,199 Paper secured by Government obligations , 2,12,16,191,162,164,191 Chart showing 2 Rates of earnings 174 Rates of discount— Acceptances 204-206 Bills discounted 194,197 Bills purchased 204-206 Rediscounts and sales between Federal Reserve Banks 42-45, 208-216 Charts showing 213, 216 Treasury certificates of indebtedness purchased 219 United States bonds and notes purchased 218 Volume of— By classes 180 By maturities 184 By months 184 By rates 194 By States 188 War paper discounted 191 Discount policy of Federal Reserve Banks 46 Discount rates 30-40,108 Acceptances— Bankers' 39,108,204 Trade 38,108, 204 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART I. 705 Discount rates—Continued. Page. Average rates charged on rediscounted bills and acceptances, 1920 and 1921 36,197,206 Bank of England 30 Charged by Federal Reserve Banks 31, 37,108,194,197, 204 Charged by member banks 31 Control over 30 Discussion of 30-40 Graduated or progressive rates 33, 34,40 In effect Dec. 31. 37-40 In force since organization of banks 108—111 Maximum progressive rates 35 On paper secured by Government obligations 33, 37, 38,108 Open-market purchases of acceptances 39, 204 Reduction in, on comm rcial, agricultural, and live-stock paper 33 Districts, Federal Reserve. (See Federal Reserve districts.) Dividends paid by Federal Reserve Banks 50, 234 Earning assets of Federal Reserve Banks: Changes in rates of earnings during year 11,16,174 Chart showing movement of 2 Holdings of 2,11,16,157,141,173 Earnings of Federal Reserve Banks: Acceptances, annual rate on 178 Annual rate on each class of earning assets 174-179 Annual rate on total investments 174 Discounts, annual rates 36 Dividends paid 50,234 Franchise tax 50,234 Rates of earnings on investments 41,42,174 Surplus fund, amount carried to 15,16,49,50, 234 United States securities, annual rates 179 Earnings and expenses of the Federal Reserve Banks 45-50,232-235 Employees: Federal Reserve Banks, number and average salaries 47,334,369 Federal Reserve Board 336 Examiners, national bank, salaries of 339 Excessive borrowings by member banks 65 Exchange, foreign. (See Foreign exchange.) Executor, administrator, etc., powers granted to national banks. (See Fiduciary powers.) Expenses: Federal Reserve Banks 232-235,359-491 Federal Reserve Board , 236 Fiscal agency department 235 Farmers, loans to 63-65 Federal Advisory Council: Meetings of 87 Members of 349 Recommendations of. (See Index to Part III.) Federal Reserve Act: Amendments to 89,351 Review of essential features of 90 Federal Reserve agents: Conferences of 87 Gold fund 227 List of 342-349 Reports of 493-678 Salaries of 334-336 Statement of Federal Reserve notes. 126,129 Federal Reserve Bank notes: In circulation 16,144 Issued 132 On hand 133 Outstanding 135 Printed 132 Redeemed 134 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

706 INDEX TO PABT I. Federal Reserve Bank of New York: Page. Bank building 51, 381-394 Bill holdings, 1919-1921 8 Index numbers. 10 Comparison of personnel with commercial banks 372 Employees, number of 394 Federal Reserve note circulation, 1919-1921 8 Index numbers 10 Gold reserves, 1919-1921. 8 Index numbers 10 Growth of business 395 Letter of directors relative to expenses 488 Letter of Governor Strong relative to expenses 467 Salaries of officers compared with commercial banks 406,482 Federal Reserve Banks: Accommodation received from or extended to other Federal Reserve Banks 42-45,208-216 Bank premises 16, 51,144,362, 377 Bonus to employees 404,409,414,418,423,428,434,439,444,448,453,458 Branches of 79, 80 Directors and managers of— Baltimore 344, 376 Birmingham 344, 376 Buffalo 343, 375 Cincinnati 343, 375 Denver. 347, 376 Detroit 345, 376 El Paso 348, 377 Helena. 346, 376 Houston 348, 377 Jacksonville 345,376 Little Rock 346, 376 Los Angeles 349, 377 Louisville 346,376 Memphis 346, 376 Nashville. 345, 376 New Orleans 344, 376 Oklahoma City 347, 377 Omaha 347, 376 Pittsburgh 343, 375 Portland 348, 377 Salt Lake City 349, 377 Savannah agency 345 Seattle 348, 377 Spokane 348, 377 Currency receipts and shipments 139 Expenses of 411, 420, 421, 425, 430, 431, 436, 441, 442, 451, 455, 456, 461, 462 Helena branch opened 79 Territory 80 Operations of 79 Building operations 51-58, 362, 377 Capital 15,16, 49,144 Condition of. (See Condition statements.) Currency receipts and shipments 136,139 Deposits 144,154,157 Depreciation on bank buildings, method of charging off 49 Directors and officers 342 Discount and open-market operations of. (See Discount and open-market operations.) Discount rates. (See Discount rates.) Dividends paid 50, 234 Earning assets. (See Earning assets.) Earnings, disposition of 91, 234 Earnings and expenses 45-50, 232-235 Earnings, rates of 174 Employees, number and average salaries 47, 334, 369 Excess reserves—11 free gold " 154 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PABT I. 707 Federal Reserve Banks—Continued. Page. Expenses of, 1914-1920 405, 411, 415, 420, 425, 429, 436, 440, 446, 450,455, 460 Federal Reserve bank notes. (See Federal Reserve bank notes.) Federal Reserve note issues. (See Federal Reserve notes.) Fiscal agency operations 73-79, 235 Subtreasuries taken over 73 Franchise tax 16, 50,144, 234, 373 '' Free gold "—excess reserves 154 Functions of 90 General powers and limitations 94 Gold reserves 6,27, 98,141,154 Governors of— List of 342-349 Meetings of 87 Salaries of 334-336 Government deposits * 144 Interest rates 98 Investments of. (See Earning assets; Discount and open-market operations.) Lending powers 91 No control over member bank loans 95 Officers and directors, list of 342 Officers and employees— Number 47, 334, 403, 408, 413, 417, 422, 427, 433, 438, 443, 448, 453, 457 Salaries 47, 48, 334, 403, 408, 413, 418, 422, 427, 434, 438, 444, 448, 453, 458 Organization . 91 Profit and loss account 234 Rediscounts between 42-45, 208-216 Charts showing 213, 216 Reserve for self-insurance and undetermined losses 50 Reserve ratio . 26-29, 42-44,154,157 Chart showing 156 Reserves 2, 6, 27, 93, 98,154,157 Resources and liabilities. (See Condition statements.) Salaries of officers 47, 334, 365 Compared with commercial banks 48, 369, 401, 406, 412, 416, 421, 426, 432, 437, 442, 446, 451, 456 Senate resolution relative to expenses of 359 Subtreasury functions taken over by 73 Surplus account 15,16, 49, 50, 144, 234 Federal Reserve Board: Assessment for expenses of. 86, 236 Conferences with— Federal Advisory Council 87 Class B directors 87 Federal Reserve agents 87 Governors of Federal Reserve Banks 87 Representatives of Federal Reserve Banks to discuss interdistrict time schedule 87 Statisticians to discuss business conditions 87 Crissinger,. D. R., appointed member 86 Directory of 342 Employees of, number and salaries 336 Expenses of 86, 236-239 Houston, David F., retirement of, as member 86 Letter of, to chairman of Joint Commission of Agricultural Inquiry relative to expenses of Federal Reserve Banks. 462 Mellon, A. W., appointed chairman 86 Members of 342 Mitchell, J. R., appointed member 86 Officers of, number and salaries 336 Organization 86 Receipts and disbursements 236-239 Regulations of 349 Senate resolution, reply to, relative to expenses of Federal Reserve Banks. 48,359 Views of, as to practice of exacting exchange charges 71 Wills, D. C, retirement of, as member 86 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

708 INDEX TO PART I. Federal Reserve districts: Page. Area of 393 Counties in divided States 393-3J98 # Description of 3£)$ Map showing outline of 399 Population of 393 Federal Reserve notes: Circulation 2,8,14,16,113,115,144,154 Chart showing 2 Years 1919-1921 2, 8 Index numbers 10 Collateral held as security for outstanding 113,115,129 Destroyed by Comptroller of the Currency 124 Eligible paper held as security for outstanding 114,115,129 Federal Reserve agents' accounts 129 Gold and gold certificates held as security 113,115,129 Held by Federal Reserve Banks 112,115 Interdistrict movement of 130 Issued to Federal Reserve Banks 120,122,125,127 Mutilated, destroyed by Comptroller of the Currency 124 On hand in Washington 119 Outstanding 112,115,121,122,129 Printed 118 Received by Federal Reserve agents from Comptroller of the Currency.. 126,129 Received from other Federal Reserve Banks 130 Redeemed and retired 120, 122,125 Reserves required against 154 Returned to Federal Reserve agents by or for account of Federal Reserve Banks 127 Returned to other Federal Reserve Banks 130 Returned by Federal Reserve agents to Comptroller of the Currency for destruction 126 Shipped to Federal Reserve agents 118 Fiduciary powers: Granted to national banks 302-315 Questionnaire on 85, 316 Fiscal agency operations of Federal Reserve Banks 73-79,235 Expenses of 235 Government deposits held 79 Sub treasuries, discontinuance of 73 Treasury certificates^ (See Treasury certificates.) Foreign banking corporations 85 Foreign branches of national banks 84 Foreign exchange rates 81-85, 298-301 Index of, 1918-1921 83 Chart showing 84 Lowest and highest monthly average for year 81 Franchise tax paid to Government by Federal Reserve Banks 16, 50,144,234, 373 Frozen credit 6 Gold: Held by Federal Reserve agents ' 141 Imports and exports 13 Reserves of Federal Reserve Banks 6,27,98,141,154 Gold settlement fund: Average weekly volume of clearings and transfers 222 Balance, by weeks 141 Expenses of operating. 59 Federal Reserve agents' fund 227 Net changes in ownership of gold 222 Summary of transactions 58, 221 Weekly operations 222 Government bonds. (See United States bonds.) Government deposits, holdings of 14,16,79,144 Government, Federal Reserve Banks as fiscal agents of 73-79,235 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART I. 709 Governors of Federal Reserve Banks: Pag«*, Conferences of 87 List of -• 342-349 Meetings of 87 Salaries of 334-336 Graduated rates of discount. (See Discount rates.) Helena branch: Opened for business 80 Territory assigned 80 Houston, David F., retirement of, as chairman of Board 86 Imports and exports, gold 13 Index numbers: Bank credit, gold reserves, and volume of business, 1919-1921.. i 7 Banking and business development, 1919-1921 10, 24 Insurance, self, reserve set aside for, by Federal Reserve Banks 50 Interest rates. (See Discount rates.) Investments of Federal Reserve Banks. (See Earning assets; Discount and op en-market op era tions.) Joint Commission of Agricultural Inquiry: Address of chairman of, on financial and economic problems 100 Letter to, regarding expenses of Federal Reserve Banks 462 Laws. (See Acts.) Liberty bonds. (See United States bonds.) Live-stock paper: Discount rates on 33, 37,108 Held by Federal Reserve Banks 164 Loans: Agricultural 63-65 Excessive, to member banks 65 Member banks, 1919-1921 3,9 Chart showing 7 Index numbers 11 To farmers 63-65 (See also Discount and open-market operations.) Losses, reserve set aside for, by Federal Reserve Banks 50 Managers of branches of Federal Reserve Banks. (See Federal Reserve Banks,) Map: Outlining Federal Reserve districts 699 Percentage of nonmember banks to total number of banks 63 Maturities: Acceptances purchased 200,207 Bills discounted 160,198 Mellon, A. W., appointed chairman of Federal Reserve Board 86 Member banks: Accommodation at Federal Reserve Banks 18, 22,188 1919-1921 9 Index numbers 11 Borrowings from Federal Reserve Banks 20, 22, 65 Capital and surplus 18 Currency received from and shipped to 136,139 Condition reports 3,18 Abstract of 267-275 Deposits— Demand 18, 21 1919-1921 9 Index numbers 11 Government 21, 22 Reserve, with Federal Reserve Banks 14,16 Time 21, 22 Distribution of banking power between member and nonmember banks .. 62 Excessive borrowings of 65 Holdings of Government securities 5,19,22 Loans and discounts 9,19, 22 1919-1921 3,7,9 Chart showing 7 Index numbers 11 Loans secured by corporate obligations 19, 22 Digitized for FRAS85E2R2 7—22 46 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

710 INDEX TO PART I. Member banks—Continued. Page. Loans secured by Government obligations 6,19,22 Number of, reporting 18 National banks— Number, capital and surplus, and total resources 60 Paper discounted for 190 Number accommodated through discount of paper 188,196 Number in each district 230 Number in each State 188 Reserve balances 21,22,144 Resources and liabilities 18-23, 267-275 State bank membership 59-63,240-266 State bank and trust companies— Abstract of condition report 267 Bills discounted for 190 Membership in system 59-63, 240-266 Number, capital and surplus, and total resources 60 (See also National banks; State banks.) Mitchell, J. R., appointed member of Federal Reserve Board 86 National banks : Bills discounted for 190 Examiners of, number and salaries 339 Fiduciary powers granted to 85, 302 Questionnaire on 316 Foreign branches of 84 Number, capital and surplus, and total resources 60 Nonmember banks: Banking power of 62 Currency received from and shipped to 139 Eligible for membership 60 Map showing proportion of, to total number of banks 63 Number of, on par list , 230 Notes. (See Federal Reserve notes; Federal Reserve bank notes.) Officers and directors of Federal Reserve Banks 342 Officers and employees: Federal Reserve Banks— Number 47, 334,403,408, 413,417,422,427, 433, 438,443,448, 453, 457 Salaries 47, 48, 334,403, 408, 413, 418, 422, 427, 434, 438,444, 448, 453, 458 Compared with commercial banks 48, 369, 401, 406, 412, 416,421, 426, 432, 437, 442, 446, 451, 456 Federal Reserve Board 336 One hundred per cent of capital and surplus, list of banks granted authority to accept up to 331 Open-market operations of Federal Reserve Banks. (See Discount and openmarket operations.) Opinion of Supreme Court in Atlanta par clearance case 69, 357 Par collections. (See Check clearing and collections.) Population of Federal Reserve districts 393 Profit and loss account of Federal Reserve Banks 234 Progressive discount rates 33, 34, 40 Purchased paper. (See Acceptances.) Rates: Discount. (See Discount rates.) Earnings on each class of earning assets 41, 42,174 Foreign exchange 81-85, 298-301 Rediscounts and sales of bills between Federal Reserve Banks 208-216 Charts showing 213, 216 Regulation B of the Federal Reserve Board 349 Reserve balances of member banks 21, 22,144 Reserves of Federal Reserve Banks 27, 93,154 Cash 2,13,16,154,157,141 Chart showing 2 Excess reserves—'' free gold " 154 Gold - - 3, 6, 8,13,16,141 Chart showing 7 Index numbers 10 Reserve ratio 26-29, 42-44,154,157 Chart showing 28,156 Digitized for FRASERM ethod of computing, change in 27 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART I. 711 Resources and liabilities: Page. Federal Reserve Banks 11-17,141,148 Member banks in leading cities 18-23, 267-275 Salaries: Federal Reserve Banks 47, 334, 365 Compared with commercial banks - 48, 369, 401, 406, 412, 416, 421. 426, 432, 437, 442, 446, 451, 456 Federal Reserve Board 336 National banks examiners 339 Senate resolution on expenses of Federal Reserve Banks, reply to 48, 359 Staff. (See Employees.) State banks and trust companies: Admitted to system 59, 60, 240-266 Eligible for membership 60 State bank and trust company members: Abstract of condition reports 267-275 Bills discounted for 190 Capital, surplus, and total resources 60, 240-266 Comparison between number, capital, and surplus of member and nonmember banks 60 Number of .' 59, 60 Resources and liabilities 18-23,267-275 Size of, as compared with eligible nonmember banks 61 State laws in opposition to par collection system 70 States in which banks collect exchange charges 71 Subtreasuries, discontinuance of 73 Supreme Court decision in Atlanta par clearance case 69, 357 Surplus account of Federal Reserve Banks 15,16, 49, 50,144, 234 Tax, franchise, paid to Government by Federal Reserve Banks 16, 50,144, 234, 373 Telegraph service, leased wire system. 59 Trade acceptances. (See Acceptances.) * Treasury certificates of indebtedness: Bills discounted, secured by 162 Discount rates on paper secured by 33, 37 Fiscal agency operations 77 Sale, allotment, distribution, and redemption of 75-78 Holdings of, by Federal Reserve Banks. 12,16,141 Purchased by Federal Reserve Banks 219 Trust companies. (See State banks and trust companies.) Trust powers. (See Fiduciary powers.) United States bonds: Amounts purchased by Federal Reserve Banks 218 Discount rates on paper secured by 33, 38 Fiscal agency operations 1' 75 Held by Federal Reserve Banks 12,16,141 Held by member banks 19, 22 Holdings of paper secured by 162 United States securities: Discount rates on paper secured by 108 Earnings, annual rate ". 179 Held by Federal Reserve Banks I. 12,16,141,171 Held by member banks. 5,19, 22 Paper secured by 6,162,164,191 Purchases by Federal Reserve Banks 218 Rates of earnings on 179 War Finance Corporation bonds, discount rates on paper secured by 108 War paper: Discount rates 33-38,108 Held by Federal Reserve Banks 162 Volume discounted 191 Wills, D. C, retirement of, as member of Federal Reserve Board 86 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 495-506 Acceptances, bankers' 496, 497 Balance sheet, comparative 495, 499 Certificates of indebtedness 496, 498 Charts- Movement of earning assets 502 Deposits, Federal Reserve note circulation, cash reserves, and reserve ratios ' 503 Clearing and collection 498, 506 Currency receipts and shipments 497, 506 Deposit and note liabilities, chart of 503 Deposits of member banks 495 Discount operations 495 Di vid ends 495 Earning assets, movement of 500, 502 Earnings 495, 505 Expenses 495, 505 Federal Reserve clearing system, operations of 506 Federal Reserve notes * 500 Fiscal agency operations. 498 Loans and discount operations 495 Movement of assets and liabilities 500 Open-market operations 496 Paper discounted and bought, volume of 504 Reserve position 497 Resources and liabilities 499 Treasury financing 498 United States securities 497 District No. 2—New York. 507-524 Balance sheet, comparative 507, 517 Bankers' acceptances 509, 510 Bonds, Government 511, 514 Buffalo branch 516 Certificates of indebtedness 511, 513 Charts— Movement of earning assets 520 Deposits, Federal Reserve note circulation, cash reserves, and reserve ratios 521 Clearing-honse associations 512, 513 Clearing and collection 512, 513, 524 Currency receipts and shipments 524 Deposit and note liabilities 518 Deposits, Government. 514 Disbursements, Government, 514 Discount rates 508 Earning assets 518 Earnings and expenses 507, 523 Exchange of Government bonds 514 Expenses 508, 523 Federal Reserve bank notes 511 Federal Reserve clearing system, operations of 524 Federal Reserve notes 511, 518 Fiscal agency operations 513, 514 Foreign banks, relations with 516 Foreign exchange rates 516 712 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART II. District No. 2—New York—Continued. Page- Government deposits 514 Government obligations owned 511 Loans and investments 508 Member banks 515, 516 Member banks relations department 515 Movement of earning assets 518, 520 National banks , 515 Paper discounted and bought, volume of 522 Rediscounts 508 Resources and liabilities 517 State bank and trust company members 515, 516 Telegraphic transfer system 51& Treasury notes sold 514 District No. 3—Philadelphia 525-542 Acceptances, bankers' 528- Balance sheet, comparative 535 Certificates of indebtedness 532 Charts- Movement of earning assets 538 Deposits, Federal Reserve note circulation, cash reserves, and reserve ratios 539 Clearing and collection 530, 531, 542- Coupon department 53k Currency receipts and shipments 542; Deposit and note liabilities 536, 539 Discount rates 526 Earning assets, movement of 525, 536> Earnings and expenses 526, 54H Examination, department of 534 Expenses 526, 541 Federal Reserve bank notes 530 Federal Reserve clearing system, operations of 542 Federal Reserve notes 529, 536 Fiduciary powers granted to national banks 534 Fiscal agency operations 532: Gold settlement fund operations 531 Loans and discount operations 527 Member banks 533>; Movement of earning assets 525, 536 Papar discounted and bought, volume of 540 Rediscounts 528 Reserve position 527 Resources and liabilities 535 State bank members 533, 534 Transit nd clearings 530 United States securities 529 War savings activities 532 Wire transfers of funds 531 District No. 4—Cleveland 543-554 Acceptances, bankers' 543 B alance sheet, comparative 547 Banking conditions in district 546 Branches of Federal Reserve Bank 545 Business conditions in district 546 C rtificates of indebtedness 546 Charts— Movement of earning assets 550 Deposits, Federal Reserve note circulation, cash reserves, and reserve ratios 551 Clearing and collection operations 545, 554 Cincinnati branch, operations of 545 Currency receipts and shipments 554 Discount operations 543 Earning assets, movement of 543, 548 Earnings 544, 55£ Examination of member banks 544 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

714 INDEX TO PART IT. District No. 4—Cleveland—Continued. Page. Expenses 544, 553 Federal Reserve bank notes 545 Federal Reserve clearing system, operations of 554 Federal Reserve notes 544 Financial results of operation 543 Fiscal agency operations 546 Loans and rediscounts 543 Member banks— National 544 State banks and trust companies 544 Member banks relations department 544 Movement of earning assets 548 National banks 544 Paper discounted and bought, volume of 552 Pittsburgh branch, operations of 545 Rediscounts 543 Resources and liabilities 547 State bank and trust company members 544 District No. 5—Richmond 555-570 Acceptances— Bankers' 559 Trade 558 Balance sheet, comparative 563 Baltimore branch, operations of 562 Bills discounted and bought 568 Branch bank operations 562 Business conditions in district 562 Certificates of indebtedness 563 Charts- Movement of earning assets 566 Deposits, Federal Reserve note circulation, cash reserves, and reserve ratios 567 Clearing and collection 555, 559, 570 Currency receipts and shipments 570 Discount operations 555, 558 Dividends 557 Earning assets, movement of 564 Earnings 569 Examination department operations 561 Expenses 569 Federal Reserve clearing system, operations of 570 Federal Reserve notes 561 Financial results of operation 557 Gold settlement fund operations 560 Leased wire service 556 Member banks, national and State 561 Movement of earning assets 564 National banks 561 Paper discounted and bought, volume of 568 Rediscounts 555 Resources and liabilities , 563 Services rendered to member banks 561 State bank members 561 Transfer of funds by wire 556 District No. 6—Atlanta 571-588 Acceptances— Bankers' 573 Permission to accept up to 100 per cent 577 Trade 573 Balance sheet 581 Birmingham branch 578 Branch banks 578 Certificates of indebtedness 579 Charts- Movement of earning assets 584 Deposits, Federal Reserve note circulation, cash reserves, and reserve ratios 585 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART II. 715 District No. 6—Atlanta—Continued. Page. Clearing and collection 575, 588 Currency receipts and shipments 575, 588 Discount operations 572 Earning assets, movement of 582 Earnings and expenses 572, 587 Examination of member banks 577 Expenses 572, 587 Federal Reserve bank notes 575 Federal Reserve clearing system, operations of 588 Federal Reserve notes 574 Fiduciary powers granted to national banks 577 Financial result of operation 571 Fiscal agency operations 579 Gold settlement fund .* 575 Government securities 579 Jacksonville branch. 578 Member banks— National 576 Reserves of 574 State 577 Money market 580 Movement of earning assets 582 Nashville branch 578 National banks 576 New Orleans branch 578 Paper discounted and bought, volume of 586 Rediscounts 573 Reserve position 573 Reserves of member banks 574 Resources and liabilities 581 Savannah agency 578 Services to member banks 571 State bank members 577 Treasurer's general account 576 War Finance Corporation 580 War savings certificates 579 Wire transfers and operations 574, 576 District No. 7—Chicago 589-604 Acceptances— Bankers' 590 Trade 590 Balance sheet 597 Bank relations department 592 Branch bank, Detroit 596 Certificates of indebtedness 592 Charts- Movement of earning assets 600 Deposits, Federal Reserve note circulation, cash reserves, and reserve ratios 601 Clearing and collection 595, 604 Currency receipts and shipments 594, 604 Detroit branch 596 Discount operations 589 Discount rates 590 Earning assets, movement of -. 598 Earnings 603 Examinations, department of 592 Expenses 603 Federal Reserve clearing system, operations of 604 Federal Reserve notes 589 Fiduciary powers granted to national banks 592 t Financial results of operation ' 589 Fiscal agency operations 591, 592 Gold settlement fund operations 594 Government savings securities 593 Member banks 592 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

716 INDEX TO PART II. District No. 7—Chicago—Continued. Page. Movement of earning assets 598 National banks 592 Paper discounted and bought, volume of 602 Rediscounts 590 Reserve position 591 Resources and liabilities 597 Savings securities 593 State bank members 592 Transit operations 594, 595 District No. 8—St. Louis 605-622 Acceptances— Bankers' 607 Trade 607 Balance sheet 1 615 Branches of Federal Reserve Bank 611 Certificates of indebtedness 613 Charts— Movement of earning assets 618 Deposits, Federal Reserve note circulation, cash reserves, and reserve ratios 619 Clearing and collection 608, 622 Coupons of United States handled 614 Currency receipts and shipments 608, 622 Deposit of Treasury funds with banks 615 Discount operations 606 Dividends 605 Earning assets, movement of 616 Earnings 621 Examination of State bank members 611 Expenses 621 Federal Reserve bank notes 608 Federal Reserve clearing system, operations of 622 Federal Reserve notes 607 Fiduciary powers granted to national banks 610 Financial results of operation 605 Fiscal agency operations 612 Foreign accounts 611 Gold settlement fund operations 610 Liberty bonds 613 Little Rock branch 612 Louisville branch 612 Member banks 611 Memphis branch.. 612 Movement of earning assets 616 National banks 611 Paper discounted and bought, volume of 620 Par list, banks on 609 Rediscounts 606 Reserve position 605 Resources and liabilities 615 Sayings certificates '.... 614 Shipments of coin and currency 608, 622 State bank members 611 War Finance Corporation • 614 Wire transfers of funds 610 District No. 9—Minneapolis 623-636 Balance sheet 626, 628 Banking conditions in district 623 Certificates of indebtedness 627 Charts- Movement of earning assets 632 Deposits, Federal Reserve note circulation, cash reserves, and reserve ratios , 633 Clearing and collection 626, 636 Currency receipts and shipments 636 Discount operations 624 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART II. 717 District No. 9—Minneapolis—Continued. Page. Discount rates 625 Dividends 626 Earning assets, movement of 630 Earnings 626, 635 Examination department 628 Expenses 626, 635 Federal Reserve bank notes 626 Federal Reserve clearing system, operations of 636 Federal Reserve notes 624, 625 Fiduciary powers granted to national banks 628 Financial results of operation 623 Fiscal agency operations 627 Loans and discounts 624 Member banks 627 Movement of earning assets 630 National banks 627 Paper discounted and bought, volume of 634 Resources and liabilities 628 State bank members 627 Wire transfer of funds 627 District No. 10—Kansas City 637-650 Balance sheet 643 Branches of Federal Reserve Bank 640 Business conditions 637 Certificates of indebtedness 639 Charts- Movement of earning assets 646 Deposits, Federal Reserve note circulation, cash reserves, and reserve ratios 647 Clearing and collection 639, 650 Currency receipts and shipments 640, 650 Denver branch 640 Discount operations 638 Discount rates 638 Dividends 642 Earning assets, movement of 637, 644 Earnings and expenses 642, 649 Expenses 642, 649 Federal Reserve clearing system, operations of 650 Federal Reserve notes 639 Financial results of operation 641 Fiscal agency operations 639 Member banks ..., 642 Movement of earning assets 637 Oklahoma City branch 641 Omaha branch 640 Paper discounted and bought, volume of 648 Reserve position 638 Resources and liabilities 643 Transit operations 639 District No. 11—Dallas 651-666 Acceptances— Bankers' 653 Permission to accept to 100 per cent 653 Balance sheet 658 Branches of Federal Reserve Bank 657 Certificates of indebtedness 652, 657 Charts- Movement of earning assets 662 Deposits, Federal Reserve note circulation, cash reserve, and reserve ratios 663 Clearing and collection 653, 666 Currency receipts and shipments 666 Discount operations 652 Dividends 651 Earning assets, movement of 660 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

718 INDEX TO PART II. District No. 11—Dallas—Continued. Page Earnings and expenses 664 El Paso branch 657 Examination of State banks 656 Expenses 664 Federal Reserve bank notes 655 Federal Reserve clearing system, operations of 666 Federal Reserve notes 655 Fiduciary powers granted to national banks 655 Financial results of operation 651 Fiscal agency operations 656 Houston branch 657 Member banks 654, 656 Member banks relations department 655 Movement of earning assets 660 National banks 654 Paper discounted and bought, volume of 664 Rediscounts 652 Resources and liabilities 658 State bank members 654, 656 District No. 12—San Francisco 667-678 Balance sheet 669 Charts— Movement of earning assets 671 Deposits, Federal Reserve note circulation, cash reserves, and reserve ratios 674 Clearing and collection. 667, 677 Currency receipts and shipments 667,677 Discount operations 667 Dividends 668 Earning assets, movement of 672 Earnings 668, 676 Examination of member banks 669 Expenses 668, 676 Federal Reserve clearing system, operations of 677 Federal Reserve notes 667 Financial results of operation 667 Fiscal agency operations 667 Member banks 668 Movement of earning assets 672 Paper discounted and bought., volume of 675 Resources and liabilities 669 State bank members 669 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO PART III. RECOMMENDATIONS OF THE FEDERAL ADVISORY COUNCIL TO THE FEDERAL RESERVE BOARD. Bankers' acceptances: Page. Cancellation of rediscount rate 685 Cumbersome methods of regulating 688 Indorsement of, without incurring liability under section 5202 688 Purchase of, by Federal Reserve Banks up to six months' maturity 682 Branches of Federal Reserve Banks, additional disapproved 691 Class legislation affecting Federal Reserve Board 691 Comptroller of the Currency, abolishment of office of 684 Currency, kinds to be paid out by Federal Reserve Banks 687 Discount market 688 Dollar exchange, acceptance by member banks of drafts drawn to furnish 683 Drafts drawn to furnish dollar exchange, acceptance of, by member banks 683 Earnings of Federal Reserve Banks 681 Eligibility of paper for rediscounting 687 Expenses of Federal Reserve Banks, criticism of 691 Federal Reserve Banks: Investments of 691 Purchase of bankers' acceptances of six months' maturity 682 Federal Reserve Board: Class legislation affecting 691 Number of appointive members increased from five to six 684 Representative to visit foreign countries 684 Federal Reserve notes, interest charge on outstanding 681 Federal Reserve Bank notes, retirement of 687 Gold certificates, issue of, by Federal Reserve Banks to prevent undue increase in reserves 686 Guarantee of letters of credit by member banks 688 House bill 242 689 Inter-Federal Reserve Bank rediscounts: Limit on 682 Rates 686 Interest: Charge on outstanding Federal Reserve notes 681 On member bank balances 682 Investments of Federal Reserve Banks 691 Legal tenders, as reserves of Federal Reserve Banks 687 Letters of credit, guarantee of, by member banks 688 Limitation on inter-Federal Reserve Bank rediscounts 682 Limitation of loans to any one borrower by State members of system 689 Liquidation, policy of applying pressure for purpose of 688 Member bank's acceptance of drafts drawn to furnish dollar exchange 683 Money, kinds to be paid out by Federal Reserve Banks 687 Money market, determination of 690 Pittman Act—purchase of silver and retirement of Federal Reserve Bank notes 687 Political influence in Federal Reserve System 691 Profits of Federal Reserve Banks, unimportant factor 692 Railroads, legislation authorizing Treasury to pay sums due 685 Rate policy of Federal Reserve System ". 685,690 Rates: Changes of, in Federal Reserve districts 685 Inter-Federal Reserve Bank rediscounts 690 Preferential, on notes secured by Liberty bonds and Victory notes 682, 686 Progressive, discontinuance of 686 Rediscount, cancellation of, for bankers' acceptances 685 Reduction of discount. 685 719 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

720 INDEX TO PART III. Rediscounts: Page. Inter-Federal Reserve Bank, limit on 682 Preferential rates on paper secured by Liberty bonds and Victory notes.. 682 Rediscounting paper, eligibility 687 Representative of Federal Reserve Board to visit foreign countries 684 Reserve of Federal Reserve Banks below 40 per cent to be taxed 689 Reserves: Basis of reserves of Federal Reserve Banks 687 Issue of gold certificates by Federal Reserve Banks to prevent undue increase in 686 Of Federal Reserve Banks for investment 692 Senate bills 579, 831 689 Silver certificates as reserve of Federal Reserve Banks 687 Tax on reserve of Federal Reserve Banks when below 40 per cent 689 Under Secretary of Treasury, creation of ofiice of 684 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis