Annual Report of the Federal Reserve Board, 1941

TWENTY-EIGHTH A N N U AL R E P O RT of the BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM COVERING OPERATIONS FOR THE YEAR 1941 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM December 31, 1941 MARRINER S. ECCLES, Chairman RONALD RANSOM, Vice Chairman M. S. SZYMCZAK JOHN K. MCKEE ERNEST G. DRAPER LAWRENCE CLAYTON, Assistant to the Chairman ELLIOTT THURSTON, Special Assistant to the Chairman SECRETARY'S OFFICE CHESTER MORRILL, Secretary LISTON P. BETHEA, Assistant Secretary S. R. CARPENTER, Assistant Secretary FRED A. NELSON, Assistant Secretary COUNSEL'S OFFICE WALTER WYATT, General Counsel J. P. DREIBELBIS, Assistant General Counsel GEORGE B. VEST, Assistant General Counsel B. MAGRUDER WINGFIELD, Assistant General Counsel ' DIVISION OF RESEARCH AND STATISTICS E. A. GOLDENWEISER, Director WOODLIEF THOMAS, Assistant Director DIVISION OF EXAMINATIONS LEO H. PAULGER, Chief R. F. LEONARD, Assistant Chief C. E. CAGLE, Assistant Chief DIVISION OF BANK OPERATIONS EDWARD L. SMEAD, Chief J. R. VAN FOSSEN, Assistant Chief J. E. HORBETT, Assistant Chief DIVISION OF SECURITY LOANS CARL E. PARRY, Chief PHILIP E. BRADLEY, Assistant Chief FISCAL AGENT O. E. FOULK, Fiscal Agent JOSEPHINE E. LALLY, Deputy Fiscal Agent 11 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONTENTS TEXT OF REPORT PAGE Transition to a War Economy i Financial Developments i Business Situation 3 Anti-Inflationary Measures 4 Federal Reserve Credit Policy and Action 5 Open Market Operations 6 Reduction in Member Bank Reserves 6 Regulation of Consumer Instalment Credit 8 Margin Requirements 10 Economic Research and Advisory Services 10 Bank Supervision and the Banking Structure 12. Member and Nonmember Banks iz Examination of State Member Banks 13 Par and Nonpar Banks 14 Bank Holding Companies 14 Trust Powers of National Banks 15 Foreign Branches and Banking Corporations 15 Fiscal Agency and Related Services 17 Foreign Funds Control and Intergovernmental Problems 17 Issuance and Servicing of Government Obligations ^18 Depositary, Custodianship, and other Functions 19 Reserve Bank Personnel and Operations 2.0 Appointments 2.1 Operations, Earnings, and Expenses zz Amendments to the Federal Reserve Act and Reports on Bills 2.4 Limitations on Real Estate Loans Secured by Defense Housing In sured Mortgages 2.4 Foreign Accounts in Federal Reserve Banks and Insured Banks Z4 Government Obligations as Collateral for Federal Reserve Notes... Z4 Proposed Legislation 14 Federal Reserve Meetings z$ TABLES No. 1. Statement of Condition of the Federal Reserve Banks (in Detail) December 31, 1941 2.8-2.9 No. 1. Statement of Condition of Each Federal Reserve Bank at End of 1940 and 1941 3°~33 No. 3. Holdings of U. S. Government Securities by Federal Re serve Banks at end of December 1940, June 1941, and December 1941 34 No. 4. Volume of Operations in Principal Departments of Federal Digitized for FRASER Reserve Banks, 1937-1941 35 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PAGE No. 5. Earnings and Expenses of Federal Reserve Banks during I94I 36~37 No. 6 Current Earnings, Current Expenses, and Net Earnings of Federal Reserve Banks and Disposition of Net Earnings, 1914-1941 38-39 No. 7. Number and Salaries of Officers and Employees of Federal Reserve Banks, December 31, 1941 39 No. 8. Receipts and Disbursements of the Board of Governors of the Federal Reserve System for the Year 1941 40-41 No. 9. Federal Reserve Bank Discount, Interest, and Commit ment Rates, and Buying Rates on Acceptances, Decem ber 31, 1941 42. No. 10. Maximum Rates on Time Deposits 43 No. 11. Member Bank Reserve Requirements 43 No. ix. Margin Requirements 43 No. 13. All Member Banks—Condition on December 31, 1941, by Classes of Banks 44~45 No. 14. All Member Banks—Classification of Loans, Investments, Real Estate, and Capital on December 31, 1941, by Classes of Banks 46-47 No. 15. Member Bank Reserve Balances, Reserve Bank Credit, and Related Items—End of Year 1918-1940 and End of Month 1941 48 No. 16. Number of Banks and Branches in United States, 1933- I941 49 No. 17. Analysis of Changes in Number of Banks and Branches * during 1941 50 No. 18. Number of Banks on Par List and Not on Par List, by Federal Reserve Districts and States, on December 31, 1940 and 1941 51 No. 19. Money Rates, Bond Yields, and Stock Prices 52. No. 10. Business Indexes 53 APPENDIX Record of Policy Actions—Board of Governors 5 6-62 Record of Policy Actions—Federal Open Market Committee 63—65 Recommendation of the Federal Advisory Council to the Board of Governors of the Federal Reserve System 66 Board of Governors of the Federal Reserve System 67 Federal Open Market Committee 67 Federal Advisory Council 68 Senior Officers and Directors of Federal Reserve Banks 69-76 State Bank and Trust Company Members 77-87 Description of Federal Reserve Districts 88-93 Federal Reserve Branch Territories 94~95 Map of Federal Reserve Districts 96 Index 97-105 Digitized for FRASER http://fraser.stlouisfeIdV. org/ Federal Reserve Bank of St. Louis

LETTER OF TRANSMITTAL BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, \fyashington, May 28, 1942. THE SPEAKER OF THE HOUSE OF REPRESENTATIVES. Pursuant to the requirements of section 10 of the Federal Reserve Act, as amended, I have the honor to submit the Twenty-eighth Annual Report, prepared by direction of the Board of Governors of the Federal Reserve System, covering operations during the calendar year 1941. Yours respectfully, M. S. ECCLES, Chairman, v Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM During the year 1941 the activities of the Federal Reserve System were increasingly geared to facilitating the transition of the nation's economy to a war basis. The Federal Reserve authorities recognized that the primary function of the financial mechanism of the country in wartime is to help meet the requirements of war production. The Board was also mindful of its responsibility to participate in the Government's program for combat ing the inflationary forces generated by the country's war effort. TRANSITION TO A WAR ECONOMY Early in 1941 it became apparent that increased war production and em ployment would greatly expand civilian purchasing power without result ing in a corresponding growth in the supply of goods available for civilian purchase. This upward pressure on prices became stronger during the year, and it became clear that concerted action by the many agencies of Govern ment concerned would be necessary to offset the inflationary effects. The Federal Reserve authorities actively participated in this concerted effort. FINANCIAL DEVELOPMENTS Increased requirements of business and Government for funds to finance the defense program led to a more rapid growth of bank credit in 1941 than in any previous year. As a result of this expansion and of some further growth in the monetary gold stock, bank deposits and currency reached record levels. Although excess reserves held by banks were reduced during the year by the growth of currency in circulation, by the expansion of deposits, and by the Board's action to increase required reserves, they were nevertheless sufficient at the end of the year to support a considerable further increase in bank credit. When the United States entered the war in December, the Board issued the following statement: The financial and banking mechanism of the country is today in a stronger position to meet any emergency than ever before. The existing supply of funds and of bank reserves is fully adequate to meet all present and prospective needs of the Government and of private activity. The Federal Reserve System has powers to add to these resources to whatever extent may be required in the future. The System is prepared to use its powers to assure that an ample supply of funds is available at all times for financing the war effort and to exert its influence toward maintaining conditions in the United States Government security market that are satisfactory from the stand point of the Government's requirements. Continuing the policy which was announced following the outbreak of war in Europe, Federal Reserve Banks stand ready to advance funds on United States Government securities at par to all banks. Digitized for FRASER 1 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

X ANNUAL REPORT OF BOARD OF GOVERNORS The growth of bank credit during 1941 reflected for the most part sharp increases in commercial loans and in holdings of Government securities. Bank loans increased by nearly 3 billion dollars. Almost two-thirds of the rise occurred in commercial and industrial loans, largely by banks in New York and other leading cities. Holdings of open market paper, agricultural loans, real estate loans, and "other loans" also increased. Surveys made by the Board of Governors and by the American Bankers Association indicated that loans to producers and suppliers of war material amounted to about one billion dollars at the end of the year. Commercial bank holdings of United States Government direct and guar anteed obligations, which had risen by 1.5 billion dollars in 1940, increased by 4 billion in 1941. About half this increase occurred at banks in leading cities during the first six months. Thereafter New York City banks made little change in their holdings while all commercial banks outside New York increased theirs by about 1.7 billion. Bank deposits and currency in the hands of the public increased by over 7 billion dollars, reaching a record high close to 78 billion. Bank debits, which represent mostly checks drawn on deposit accounts, rose at a some what faster rate, reflecting the increased amounts of payments accompanying more active business. The rate of use or turnover of deposits rose slightly above the 1940 level. Developments in the security markets during 1941 also reflected the gradual transition of the country's economy to a defense and finally a war basis. The interest bearing debt of the Government was increased by 13.4 billion dollars, of which 6.3 billion was in marketable securities. The market for Government issues was relatively steady throughout the year. Additions to manufacturing facilities for defense purposes were financed largely by Government funds. Private financing through corporate security issues for new capital amounted to about one billion dollars, most of which was re lated directly or indirectly to defense activities. Nearly two-thirds of the amount was borrowed by railroads, largely in the form of equipment trust obligations, and by other public utilities, especially telephone companies, for financing expansion. The corporate security markets were quiet during most of the year. Stock prices drifted downward and the volume of trading was the smallest in more than two decades. The international financial relations of the United States were also largely determined by war developments. Capital and gold movements were domi nated by the fact that, through Lend-Lease credits and grants of assistance by other Government agencies, this country was once more an international lender on a large scale. The capital inflow which characterized the pre-war years and the first eight months of the war period came to a halt toward the end of 1940, according to the reported weekly figures, and gave way to a capital outflow. This outflow, attributable in part to the liquidation of British dollar re sources in support of the Empire's war effort, was supplemented during 1941 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 3 by the export of American capital through Government operations which lay outside the reporting system. In general, the capital movement between the United States and countries which have not been beneficiaries of the Government's lending program has been ended by United States "freezing" regulations. The gold movement to this country has been affected by much the same factors. The intensive phase of the movement from Europe ended early in 1941 and toward the end of the year the United States became a net seller of gold. The monetary gold stock, which had risen steadily from xx.o to xi.8 billion dollars during the first ten months of the year, declined slightly during November and December. BUSINESS SITUATION Defense and war developments dominated the business situation in 1941. Early in the year the domestic defense program provided for expenditures of about 2.0 billion dollars over a period of several years. Passage of the Lend- Lease Act in March, however, and subsequent additions brought the com bined defense program to 60 billion dollars late in August. The actual and prospective effects of these large-scale purchases were reflected immediately in widespread changes in commodity markets as well as in industrial and trade activities. Important indirect effects soon took the form of rising consumer incomes, limited supplies of civilian goods, and advancing costs of production and of living. At the beginning of the year the output of civilian goods and the standard of living surpassed all previous records, while at the same time military production was expanded. Output in most industrial lines was advancing rapidly, although for some commodities, chiefly the metals, production was already close to capacity. Later in the year shortages of metals and numer ous other basic materials became acute, priorities were established to con trol their distribution, and pressure to expand production facilities for armaments and essential civilian products was increased. By the end of the year, plans were being made for widespread conversion of existing facilities and labor to war production and also for further restriction of consumption of civilian goods made from scarce commodities. As early as February the prospect of increased shipping difficulties brought sharp advances in prices of imported materials. In March price increases extended to domestic commodities, reflecting chiefly anticipation of the effects of the rapidly expanded program for Federal expenditures. During the spring and summer there was unprecedented buying by manufacturers, distributors, and consumers. The rate of buying declined in the autumn as inventories and commitments accumulated and as Federal restrictions on the purchase of materials and the output of finished products were extended. After the United States entered the war, buying again increased and prices rose sharply. During the year the general level of wholesale commodity prices advanced rapidly and by December was 10 per cent above the level prevailing in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 ANNUAL REPORT OF BOARD OF GOVERNORS summer of 1940 when the defense program was inaugurated. The cost of living changed little prior to the spring of the year, but increased about 10 per cent by December, 1941. Income payments to individuals at the end of the year were at an annual rate of 104 billion dollars and were one-third higher than in the summer of 1940. Relatively the increase was about the same for wages and salaries as for other income. The rise in wages and salaries was primarily due to a sharp expansion in employment and an increase in hours of work, but higher wage rates were also an important factor. The number employed, excluding the armed services, was about 49.5 millions at the end of the year. This was 3.5 million more than a year earlier and, with over a million men added to the armed forces, the number of unemployed was considerably reduced. Wage rate advances became widespread as demand for workers increased greatly and the pressure for higher rates was stimulated by the sharp rise in living costs and by further increases in the profits of large industrial corporations, even after allowance for higher income and excess profits taxes. Industrial production, as measured by the Board's seasonally adjusted index, advanced about 2.0 points in the first half of 1941 and 7 points during the rest of the year to reach a level of 167 per cent of the 1935-39 average i*1 December. In the latter half of 1941 output of some civilian goods, par ticularly automobiles, tires, and silk goods, declined, owing largely to Federal action. Production of other civilian goods showed little further advance while armament production accounted for a growing proportion of industrial output. Activity in the construction industry and on the railroads increased to the highest levels in many years. Agricultural output increased somewhat, partly in response to higher Federal production goals, and cash farm income, with sharply higher prices for farm products, was about 30 per cent larger than in 1940. By the end of the year, although income payments declined in some civilian industries, incomes of persons employed in war production and allied activi ties continued to increase. Despite higher taxes and increased savings, con sumers had substantially larger incomes available for spending. Meanwhile there had not been a corresponding growth in the supply of goods available to consumers and the growing pressure of increased purchasing power was reflected in rising prices all along the line, at both retail and wholesale levels. With the entry of the United States into the war, vast additional Federal expenditures became necessary. A rapid increase in armament production ensued and output of goods for civilians was further curtailed. The combina tion of increased incomes and reduced supplies of civilian goods intensified the problem of price control in all its phases. ANTI-INFLATIONARY MEASURES Government action over a broad front was taken to deal with the infla tionary danger. Federal price ceilings and voluntary agreements were ap plied to a long list of metals and other important raw materials; taxes were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 5 increased; efforts were made to stimulate voluntary savings by introducing new forms of Government securities and intensifying campaigns to sell these securities; member bank reserve requirements were raised to the limits authorized by law; regulation of consumer credit was set up; and, as the year closed, rationing in retail markets was applied to tires and automobiles. It was clear that similar control would have to be applied to consumer ex penditure on other goods which would become acutely scarce because of the war situation. The measures of restraint that fell within the province of the Reserve System are discussed in more detail elsewhere in this report. The revenue legislation of 1940 increased individual surtax rates, lowered personal exemptions by 2.0 per cent, increased the normal corporation tax by about one-third, imposed a corporation excess profits tax, and made increases in the estate and gift tax rates and most excise tax rates of around 10 per cent. About half of the 3 billion dollar increase in net budgetary receipts during the calendar year 1941 was attributable to these changes. The expanding scope of the defense program led the Treasury to propose new revenue legislation in April, but it was not until September that the Revenue Act of 1941 was enacted into law. This measure was estimated to yield about 3.5 billion dollars on a full-year basis. Corporation income taxes made up about 1.4 billion of this total, individual income taxes about 1.1 billion, estate and gift taxes about 150 million, and taxes on the sale and use of various commodities and services about 850 million. These changes were reflected only to a minor extent in actual Treasury receipts during the calendar year 1941. They will be more fully reflected during 1942. when, not allowing for further changes in the revenue structure, Treasury receipts will run at an estimated rate of about 6 billion dollars higher than in 1941. The increase in money incomes to be generated by the great expansion of military expenditure, however, will be much larger than this sum. It is expected that civilian expenditure, which will be reduced by tax payments, will be further curtailed by personal and corporate savings unable to find customary channels of investment. But the degree of restriction thus achieved will not be sufficient to reduce the demand for civilian goods to the extent that their output will be curtailed. Extensive additional measures, designed to restrict the availability of purchasing power in 1942., will be a necessary part of a program to prevent further sharp advances in prices and the cost of living. , FEDERAL RESERVE CREDIT POLICY AND ACTION Federal Reserve credit policy in 1941 was formulated with reference to banking and credit conditions in the light of wartime needs. It was related to the entire range of problems connected with the financing of defense and war requirements without causing inflationary developments. During the year these problems were continuously studied by the Federal Reserve author ities and discussed by them with the United States Treasury and with other branches of the Government. As conditions demanded, steps were taken to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6 ANNUAL REPORT OF BOARD OF GOVERNORS stabilize the Government security market by open market purchases, to reduce the potential expansion of bank credit by increasing reserve require ments, and to curtail consumer demand through the regulation of credit for instalment purchases. OPEN MARKET OPERATIONS Throughout the year the Treasury continued its long-established practice of conferring with members of the executive committee of the Federal Open Market Committee before deciding upon the form of its security offerings. In addition, joint conferences were held to consider the develop ment of a long-term program for financing the Government's rapidly growing requirements. The defense and war program necessitated a large increase in Government borrowing. The interest bearing direct and guaranteed debt of the Govern ment increased by 13.4 billion dollars in 1941. Less than half of this amount was in marketable issues, however, 1.6 billion dollars of the total having been in special issues to Government agencies and trust funds and 5.5 billion in nonmarketable public issues such as savings bonds and tax notes. The issuance of the latter types of securities was in accordance with the Government's announced policy of attracting current savings in order that Government financing might be accomplished with as little growth of bank credit as possible. Beginning in March all new issues of United States Government obligations were made subject to Federal income taxes. In October the Treasury adopted the practice of issuing direct obligations to replace guaranteed securities as they mature or are called. The market for Government securities was relatively steady and there was no occasion until December for open market operations by the Reserve Sys tem. Following a decline in the first six weeks of the year, quotations on long-term Government bonds advanced to a peak about the first of November % and then declined slowly to December 6. During this period the Open Market Committee made no change in the total amount of Government securities held in the System account. From the time the United States entered the war until shortly before the end of the year, quotations on long-term bonds declined by about i\ points and shorter term securities declined moderately. During this period the Reserve System purchased 60 million dollars of bonds and 10 million dollars of bills. The Treasury also supported the market by investing some of its trust funds. In a relatively short time the market for Government bonds became steady on the basis of yields slightly above the low points reached in November. REDUCTION IN MEMBER BANK RESERVES Bank credit expanded more rapidly during 1941 than in any previous year. Bank loans and investments, as well as deposits, were at the highest level on record. As a consequence of this expansion, together with the drain Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 7 on reserves caused by currency expansion, the excess reserves of member banks declined about 1.6 billion dollars during the first eight months of the year. Nevertheless, in September they were above 5 billion dollars. As a part of the Government's program to combat inflation and for the purpose of establishing better contact between the Federal Reserve Banks and the money market, the Board on September 2.$, after consultation with the Secretary of the Treasury, increased reserve requirements of member banks to the limit of its statutory power. To put this increase into effect the Board issued a revised supplement to its Regulation D, which prescribed MEMBER BANK RESERVES AND MAIN FACTORS OF CHANGE BILLION S OF DOLLARS WEDNESDAY FIGURES BILLIONS OF DOLLARS 24 24 22 22 " - 20 20 " - 18 GOLD STOCK. 18 16 16 14 14 12 12 f MEMBER BANK 10 RE SERVE BALAN<: ES/^^ ^ 10 > v*"* 8 8 6 J^V^J^SC^ r <-«"•'' v MONE - Y IN — CIRC - U " LA TION - 6 4 4 10 10 1 1 8 ^^-*.~£T ^H.-*-* — 4 8 REQUIF{ ED RESERVES 6 - 1 ""*"*-» ^^ S^f^ ^ vi 6 4 rv^EXCESS R ESERVES 4 2 >/V"~_~~ 2 / - 0 0 1937 1938 1939 1940 1941 an average increase in reserve requirements of about one-seventh on all member bank deposits, effective November 1, 1941. About 1.2. billion dol lars of reserves were absorbed by this action and excess reserves were reduced to about 4 billion dollars. In connection with this increase in reserve requirements by the Board, the Secretary of the Treasury and the Chairman of the Board issued the fol lowing statement: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 ANNUAL REPORT OF BOARD OF GOVERNORS The Treasury and the Board of Governors will continue to watch the economic situation and to cooperate with other agencies of the Government in their efforts, through priorities, allocations, price regu lation, and otherwise, to fight inflation. Recommendations on the question of what additional powers, if any, over bank reserves the Board should have during the present emergency and what form these powers should take will be made whenever the Treasury and the Board, after further consultation, determine that such action is necessary to help in combating inflationary developments. Excess reserves were also drawn upon during 1941 by other developments arising out of the war and the defense program. The unprecedented inflow of gold which had accounted for the large growth in bank reserves since 1933 slowed down during 1941 and stopped altogether in the latter part of the year. Expansion of the demand for currency, resulting principally from the enlarged volume of wage payments and retail trade, and to some extent from withdrawals of currency for other purposes, absorbed a substantial amount of excess reserves. Currency in circulation rose by about 2..5 billion dollars in 1941 compared with an increase of 1.1 billion the previous year. By the end of 1941 excess reserves had declined to 3.1 billion dollars, a reduction of 3.5 billion during the year. Losses of reserve funds in 1941 were largely concentrated at banks in New York City. At the end of the year about one-third of total excess reserves was held by these banks as against more than one-half at the beginning of the year. This drain of funds from the New York market was a sharp reversal of the situation pre vailing in 1938 and 1939. It reflected a number of factors, principally the following: the Treasury raised more funds in the New York area than it spent there, the increase in currency in circulation was heavy, interbank deposits declined during the last quarter, and New York City banks purchased securities from outside banks and made loans to customers who spent part of the proceeds elsewhere. On the other hand, the gold inflow, which in previous years had replenished the reserves of New York banks, was on a much smaller scale in 1941. REGULATION OF CONSUMER INSTALMENT CREDIT The Board of Governors was authorized and directed by the President's Executive Order No, 8843, issued on August 9, 1941, under the provisions of section 5(b) of the Act of October 6, 1917, as amended, to exercise a measure of control over consumer credit during the period of national emer gency arising out of the second World War. Pursuant to this order, on August 7.1 the Board issued Regulation W which, with the exception of certain provisions, became effective September 1, 1941. Two amendments, effective September 2.0 and December 1 respectively, were subsequently adopted. The purposes of Regulation W, as set forth in the Executive Order of the President, include the dampening of the demand for certain durable consumer goods as their supply becomes limited by diversions of materials and skills Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 9 required for the national defense. They also include restraint of the expan sion of consumer credit in general. Persons and agencies subject to Regulation W include all who are engaged in the business of making extensions of consumer instalment credit, or dis counting or purchasing instalment paper, including instalment sellers of the listed articles, whether dealers, stores, mail order houses, or others; sales finance companies; banks, including Morris Plan and other industrial banks; personal finance or "small loan" companies and credit unions; and building or savings and loan associations. Such persons were required to register before the end of the year 1941 with the Federal Reserve Bank of their district. The new regulation prescribed minimum down payments and maximum maturities applicable to consumer credit extended through instalment sales of certain listed articles and instalment loans for the purchase of these articles. In addition, it limited the maximum maturity of miscellaneous cash loans of $1,000 or less repayable in instalments, which include many instalment loans made to finance consumer purchases. Effective September 2.0, 1941, the Board amended the part of the Supple ment to Regulation W pertaining to the method of determining the maxi mum credit value of new automobiles; and effective December 1, 1941, the regulation was amended in a number of respects, the more important of which were to exempt business loans, require a statement from the borrower as to the purpose of the loan, provide more flexibility for the schedule of payments by farmers and in connection with consolidating obligations, prohibit instalment loans for the purpose of making down payments on listed articles, and make the regulation applicable to instalment loans of $1,500 or less instead of $1,000 or less as previously. Through section 3(b) of the Regulation the Board issued a general license to all persons or concerns engaged on or before December 31, 1941 in the extension of instalment credit as defined by the regulation. This license was to continue in effect after December 31 for licensees who had filed regis tration statements in form prescribed by the Board, with the Federal Reserve Banks or their branches. About 170,000 such statements were filed. Pro vision was made for the subsequent licensing of new registrants filing state ments after the close of the year. Any material misstatement or omission willfully or negligently made in the registration statement, or any willful or negligent failure to comply with the provisions of Regulation W or any requirement of the Board pursuant thereto, constitutes cause for suspension of a registrant's license at the discretion of the Board of Governors. No licenses were suspended in 1941. In November a three day conference of officials of the Federal Reserve Banks and members of the Board and its staff was held in Washington for the purpose of exchanging information as to the effect of Regulation W on users of instalment credit and discussing possible amendments to the regula- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IO ANNUAL REPORT OF BOARD OF GOVERNORS tion, relations with the trade and State supervisory authorities, and adminis trative problems of interpretation and enforcement. In order to facilitate the coordination of the Board's functions under the Executive Order with other phases of the program for national defense, a consulting committee was created by the Order with which the Board confers when formulating policies with respect to down payments, matu rities, terms of repayment, and other questions of general policy. The committee consists of the Secretary of the Treasury, the Federal Loan Ad ministrator, and the Administrator of the Office of Price Administration. In addition, the Board consulted from time to time with the Federal Advisory Council, with all the Federal Reserve Banks, and with representatives of numerous trade associations representing persons and institutions directly affected by the regulation. The geographical organization of the Federal Reserve System made it possible to decentralize the regulation of consumer credit, the twelve Re serve Banks and their twenty-four branches administering the regulation in their respective regions. The Reserve Banks and their branches were close to the general business activity of the regions they served and were able quickly to establish the new contacts required by the regulation with lenders and dealers engaged in granting instalment credit. A nation-wide extension of administrative responsibility in new fields of business was thereby estab lished readily on a regional basis, and reference to Washington reduced to a minimum. MARGIN REQUIREMENTS Effective February Z4, 1941, the Board of Governors amended Regula tion U, governing loans by banks for the purpose of purchasing or carrying stocks registered on a national securities exchange. The amendment was essentially technical, its principal purpose being to reconcile provisions of the regulation with rules issued by the Securities and Exchange Commission with respect to the hypothecation by brokers or dealers of securities carried by them for the account of customers. The amendment provided, in effect, that any indebtedness of a broker or dealer that is secured by customers' securities shall be treated separately from any of his other indebtedness. In addition, the amendment provided for a simple mechanism by which .col lateral that is used to meet the requirements of the regulation may be ear marked and distinguished from other collateral which, even though it secures a loan subject to the regulation, is not used for the purpose of meeting those requirements. ECONOMIC RESEARCH AND ADVISORY SERVICES During the year the Board's means of gathering information on business and credit conditions were modified to meet current changes in the economy. The usual economic reporting services were continued and there were many requests from other Government agencies for specialized reports and informa- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM II tion. In addition to analyzing current economic movements, the Board's staff continued work on several long-run research projects and contributed information and advice to many inter-departmental conferences. At the request of the Office of Production Management, the Board and the Reserve Banks made a survey of defense loans and loan commitments at banks in 101 leading cities as of April 30. The purpose was to obtain information as to the amount and character of the participation of banks in the defense effort. Later in the year, at the request of the Division of Civilian Supply of the Office of Production Management, the Board and the Reserve Banks made a survey of department store inventories. By September the Board's index of industrial production, which is widely used throughout the Government, had been revised to take account of armament production not already covered. The Board continued its study of post-war readjustment problems. These problems cover a wide range of economic and financial relationships, all of which have a bearing on the reconstruction and stabilization of the economy after the war. Close contact has been established with other agencies work ing on related projects. Some of the post-war readjustment studies relate broadly to international policy and problems. Special attention is being devoted to Canadian-United States economic relations, and members of the Board's staff are serving as Chairman and Secretary of the United States Committee of the Joint Eco nomic Committees of Canada and the United States. Other members of the United States Committee have been drawn from the Treasury Depart ment, the Department of State, the Tariff Commission, and the War Pro duction Board. The corresponding Canadian committee is composed of civil servants in various Dominion Government departments and an official of the Bank of Canada. These committees study and report to their respec tive governments on the possibilities for more efficient use of the combined resources of the two countries in the production of war requirements and on ways of reducing the impact of post-war economic dislocations. Members of the Board's staff continued their cooperation on the Inter- American Bank project with members of the Departments of State and the Treasury and the Federal Loan Agency. This project originated in the Financial and Economic Advisory Committee created in October 1939. In 1940 the Committee recommended the establishment of an Inter-American Bank to the 2.1 governments it represents, and submitted for their considera tion drafts of a convention, charter, and by-laws. The Convention was signed by nine governments, including the United States, and has been transmitted by the President to the Senate for its advice and consent to ratification. The President has also transmitted a bill embodying a charter for the Bank and providing for participation by the United States in its organization and management. In September 1941, the Department of State requested the Board to appoint two members of its staff to serve with representatives of the Treasury Depart- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IX ANNUAL REPORT OP BOARD OF GOVERNORS ment on a technical mission to Cuba. The mission was named at the request of the Republic of Cuba to recommend a program of monetary and banking reform to the Cuban Government. After meetings in Habana, the mission returned to Washington where its work is still in progress. On November 19, 1941, the President appointed the Chairman of the Board, or his alternate, to serve as a member of the Price Administration Committee. This Committee acts in a consultative capacity to the Office of Price Administration. Pursuant to the request of the Director of Censorship on December 30, 1941, a member of the Board was designated as a representative of the Board of Governors on the Censorship Operating Board provided for by the Presi dent's Executive Order of December 19 to "perform such duties with respect to operations" as the Director of Censorship should determine. The Board continued its cooperation in the educational campaign of the Secret Service against counterfeiting by printing and distributing to all banks some of the educational material prepared by the Secret Service. A complete index of counterfeit notes circulated since 19x9 was made available to the banks. Practically all currency used in the United States flows through the Reserve Banks, which maintain close contact with regional offices of the Secret Service. When spurious bills are detected, they are imme diately stamped and turned over to the Secret Service agent. The responsibilities of the Federal Reserve System require the accumula tion and study of a large volume of economic and financial data, summaries of which are published from time to time by the Board of Governors and the Federal Reserve Banks. During 1941 each Federal Reserve Bank pub lished a monthly review of banking and business conditions in its district and the Board brought out the monthly Federal Reserve Bulletin for the 17th year. A completely revised edition of Chart Book I, Federal Reserve Charts on Bank Credit, Money Rates, and Business, was made available in February and preparations were made for a new edition of Chart Book II, Federal Reserve Charts on Industrial Production. Banking Studies, a volume of seventeen papers on banking subjects prepared by the Board's staff, was published by the Board in August. In answer to continuing demand, the Board reprinted its booklet The Federal Reserve System—Its Purposes and Functions, first released in 1939. BANK SUPERVISION AND THE BANKING STRUCTURE In its Annual Report for 1938, the Board described in some detail the diffusion of responsibility for bank supervision, which is shared by the Federal Reserve System with other Federal agencies and with the fortyeight States. The problems remain substantially the same. MEMBER AND NONMEMBER BANKS There were 18,514 banking offices in the United States at the end of 1941, a net decrease of 37 for the year. This decline, while following the general Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM J3 trend of recent years, was the smallest since 1934. The number of banks decreased by 70 to 14,8x5, while the number of branches increased by 33 to 3,699. The net decrease in the number of banks was due principally to consolida tions, absorptions, and voluntary liquidations. There were only eight bank suspensions during the year—the lowest annual figure on record. Newly organized banks numbered 53, substantially above the number for the three previous years. The net increase of 33 in the number of branches was slightly less than in 1940, and was largely accounted for by the establishment of out-of-town branches. Nearly three-fourths of the new branches were de novo branches; the number of existing banks converted into branches was the lowest for several years. Although there was a net decrease of 70 in the total number of banks, membership in the Federal Reserve System continued to increase in 1941. National banks—which are required by law to be members of the Federal Reserve System—declined by a net of 17, but State bank members increased by a net of 160. At the end of the year there were 6,619 member banks. The Board approved the applications of 166 State banks for membership in the System and 172. banks were admitted to membership. In two cases the new members were banks organized to succeed existing members and accordingly their admission did not increase the number of member banks. The difference between the number of banks admitted to membership and the number of applications approved in any one year is due to the fact that a bank whose application is approved toward the close of the year may not accomplish membership until the following year. The total deposits of the 170 new State member banks amounted to $341,393,000, as shown in their first call reports filed as member banks. Measured by deposits, these 170 banks ranged in size from $90,000 to $88,2.83,000. They were distributed throughout the twelve Federal Reserve districts, the greatest number being in the Chicago, New York, St. Louis, and Cleveland districts. EXAMINATION OF STATE MEMBER BANKS Under the provisions of the Federal Reserve Act, State member banks are subject to examination at the direction of the Board of Governors or at the direction of the Reserve Banks, by examiners selected or approved by the Board of Governors. The policy already approved for the examination of State member banks was continued without change in 1941; i.e., that at least one regular examination of each State member bank, including its trust department, be made during each calendar year by examiners for the Reserve Bank of the district in which the State member bank is located, and that additional examinations be made in special cases. In order to avoid dupli cation and to minimize inconvenience to the banks examined, it continued to be the policy, wherever practicable, to make joint examinations in cooper- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

i4 ANNUAL REPORT OF BOARD OF GOVERNORS ation with the State banking authorities or, by agreement with the State authorities, to make alternate examinations. In accordance with the practice of holding periodic conferences with representatives of the bank examination departments of the Reserve Banks, the officers in charge of the departments met in Washington for several days in October to confer with members of the Board and its staff. The con ference was especially concerned with the necessity that the banking system prepare itself for the uncertainties to be encountered during the period of wartime demand and the period of post-war adjustment. PAR AND NONPAR BANKS The Federal Reserve Act provides that no exchange charges for the col lection or payment of checks shall be made against the Federal Reserve Banks; and, consequently, only checks on which no exchange is charged are collectible through the Reserve Banks. To facilitate collections, there is maintained a "Federal Reserve Par List", comprising all member banks— which are required to remit at par for checks presented to them by the Reserve Banks—and nonmember banks that have agreed to pay without deduction of exchange charges such checks drawn upon them as are for warded for payment by the Reserve Banks. At the end of 1941 there were 11,543 banks on the Federal Reserve par list. This figure included the 6,619 member banks and 4,914 nonmember banks. The number of nonmember banks (other than mutual savings banks and banks on which no checks are drawn) not on the par list was 1,731. The number of banks on the par list declined by 89 during the year, as a result of mergers, voluntary liquidations, suspensions, and withdrawals from the list. In 1941 there was a net increase of 16 in the number of nonpar banks—the first since 1937. As in other recent years, more of the banks that continued in existence throughout the year withdrew from the par list than were added to it—17 withdrawals as against 11 additions. Nineteen nonpar banks went out of existence, but this decrease was exactly offset by the organization of a similar number of new nonpar banks; in the several previ ous years the number of nonpar banks going out of existence exceeded the number newly organized. At the end of the year nonpar banks were dis tributed by States as follows: Minnesota 410, Georgia 161, Mississippi 175, Tennessee 173, Nebraska 164, Wisconsin 161, Alabama 131, Arkansas 117, North Carolina 115, South Carolina 119, Iowa 114, North Dakota in, Missouri 107, Louisiana 105, South Dakota 96, Texas 96, Florida 89, and 11 other States 155. BANK HOLDING COMPANIES Bank holding companies, technically defined as "holding company affil iates", are required by law to obtain voting permits from the Board of Governors of the Federal Reserve System before stock of subsidiary member banks which the holding companies own or control may be voted. This Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM J5 requirement does not apply to the voting of stock of subsidiary banks which are not members of the Federal Reserve System, whether they are insured banks or not. In acting upon an application for a voting permit the Board is required by law to consider, among other things, the financial condition of the applicant and the general character of its management. The Board may, in its discretion, grant or withhold a voting permit, as the public in terest may require. Regulation of bank holding companies by the Board is effected not only through the statutory powers to grant, withhold, or re voke voting permits, but also through agreements executed by the holding companies as a prerequisite to obtaining voting permits from the Board. The purpose of such agreements is that the holding companies, their sub sidiary banks, including member banks and nonmember banks, whether insured or uninsured, and subsidiary nonbanking organizations shall main tain sound financial condition and proper management policies and operating practices, including those involving intercompany transactions and rela tionships. Appropriate action was taken during the year in a number of cases with respect to various important matters in the regulation of bank holding companies. During the year the Board authorized the issuance of three general voting permits, i.e., permits unlimited as to time or matters which may be voted upon, and six limited voting permits, i.e., permits for limited periods of time and limited also as to subjects which could be voted upon. Under the authority of section 301 of the Banking Act of 1935 the Board determined that two organizations were not engaged directly or indirectly as a business in holding the stock of, or managing or controlling, banks, banking associations, savings banks or trust companies, and that, therefore, they were not holding company affiliates except for the purpose of section X3A of the Federal Reserve Act, which contains limitations on loans to affiliates and investments in or loans on their obligations by member banks. TRUST POWERS OF NATIONAL BANKS Under the provisions of section n(k) of the Federal Reserve Act, the Board granted to eight national banks authority to exercise one or more trust powers. Trust powers of twenty-seven national banks were termi nated, fourteen by voluntary liquidation, one by insolvency, and twelve by voluntary surrender. At the end of 1941, there were 1,838 national banks holding permits to exercise trust powers. FOREIGN BRANCHES AND BANKING CORPORATIONS The extension of the war to new areas during 1941 and the entrance of the United States into the conflict further restricted the foreign operations of member banks. This was most marked in the Orient, where by the end of the year seven branches of member banks were under enemy control. The business of the three branches or offices remaining in continental Europe was already greatly reduced when the United States entered the war. American Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

i6 ANNUAL REPORT OF BOARD OF GOVERNORS banking institutions had generally taken measures in advance to reduce the hazards to offices in the more exposed areas. No applications were received during the year for permission to establish foreign branches pursuant to the provisions of section 15 of the Federal Reserve Act. On the other hand, there was a decrease of 15 branches. At the end of the year seven member banks had a total of 78 branches or offices in -n. foreign countries or dependencies or possessions of the United States. Of the 78 branches and offices, four national banks were operating 71, and three State bank members were operating 7. The foreign branches were distributed geographically as follows: Latin America 42. Argentina 10 Brazil 4 Chile 2. Colombia 3 # Cuba 16 Mexico 1 r Panama 3 Peru 1 Uruguay 1 Venezuela 1 Far East 11 Burma 1 *China 4 *Hong Kong r India 3 *Japan 1 Straits Settlements 1 Continental Europe *Belgium 1 France *Occupied 1 Unoccupied 1 England 10 United States Insular Possessions and Dependencies 11 Canal Zone 4 *Philippine Islands 1 Puerto Rico 7 Total 78 * Enemy or enemy-occupied territory on December 31, 1941. The 4Z offices of member banks in ten Latin American countries should be in position to make a material contribution to the war effort of the Western Hemisphere, being well established in a number of important cities and hav- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 17 ing a background of experience. The situation is unlike that which ob tained at the time of the first World War, when banks in the United States had just opened or were in the process of opening branches in Latin America. Inter-American trade has assumed a strategic character in view of the need in this country for Latin American raw materials and in Latin America for essential supplies from the United States, and member banks operating there perform an important function in facilitating this trade. There is only one banking corporation in active operation organized under the provisions of section 15(a) of the Federal Reserve Act and chartered by the Board to engage in international or foreign banking. Its head office was examined during the year by the Board's Division of Examinations. The institution has a branch in France, three branches in the Far East, and a fiduciary affiliate in England. The operations of the Paris branch during the year were largely of a liquidating nature. The bank continued to main tain the temporary office established in unoccupied France when Paris fell. The outbreak of hostilities in the Orient brought the three branches in the Far East under Japanese control. The only other corporation organized under the provisions of section 15(a) in existence at the close of 1940 had been placed in voluntary liquidation by vote of its shareholders in 1933. During 1941 a final liquidating dividend was paid to shareholders. No changes occurred during the year in the list of corporations organized under State law and operating under agreements with the Board pursuant to the provisions of section 15 of the Federal Reserve Act relating to the investment by member banks in stocks of corporations engaged principally in international or foreign banking. There are four such corporations. FISCAL AGENCY AND RELATED SERVICES Throughout 1941 the day-to-day work of the Federal Reserve Banks re flected the growing emphasis on preparation for war. There was a great increase in the volume and variety of services performed by the Reserve Banks for various branches of the Government, and the fiscal agency opera tions of the Reserve Banks in connection with Treasury financing increased fourfold. FOREIGN FUNDS CONTROL AND INTERGOVERNMENTAL PROBLEMS The "freezing" of foreign assets and the control of foreign transactions has been an important defense activity in 1941. As agents for the Foreign Funds Control in the Treasury, the Reserve Banks receive license applica tions relating to transactions affecting the interest of "nationals" of blocked countries. Under general authorizations from the Treasury, the Reserve Banks act independently on most of these applications and refer only a small num ber to the Treasury Department with recommendations. An inventory of all property held in the United States by "nationals" of foreign countries was made during the year. This involved a great deal of work for the Re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

i8 ANNUAL REPORT OF BOARD OF GOVERNORS serve Banks, with which the inventory reports were filed in accordance with the instructions of the Treasury Department. Immediately following the entry of the United States into the war in December, the Reserve Banks were called on to assist the Treasury in placing representatives in numerous im portant Japanese banking and business enterprises. A few days later instruc tions were received by the Reserve Banks to revoke or amend the licenses of many German and Italian concerns and to place representatives on their premises. During the year the Treasury held several conferences on the subject of Foreign Funds Control which were attended by representatives from all Federal Reserve Banks and from the Board of Governors. The Federal Reserve Banks hold the gold reserves and most of the official funds maintained by foreign countries in the United States. Gold under earmark at the Reserve Banks increased by 400 million dollars to over x,xoo million during 1941, while the deposits of foreign central banks and govern ments in the Reserve Banks were reduced by about 360 million to approxi mately 770 million at the end of the year. A large proportion of these foreign assets were in 4 'frozen'' accounts which, though relatively in active, necessitated extensive consideration by the Reserve Banks and the Board. It was necessary to obtain not only licenses for transactions in such accounts but also certification of the authority to operate many of them pursuant to Section 2.5 (b) of the Federal Reserve Act. On the other hand, many of the accounts which were not "frozen" were exceptionally active. The Reserve Banks rendered important service to friendly belligerent govern ments and their official missions in this country by handling their dollar receipts and their dollar disbursements for war supplies. The Reserve Banks have continued their activities as agents of the Treas ury in gold transactions with foreigners and in purchases of foreign silver. The Federal Reserve Bank of New York carries out the operations of the Stabilization Fund in accordance with instructions from the Treasury. The Reserve Banks have also collected reports and maintained the records of capital movements and foreign exchange transactions compiled since 1934 in accordance with Executive Orders and Treasury Regulations. Loans which the Federal Reserve Act authorizes the Reserve Banks to make on gold to foreign central banks and which were outstanding at the end of 1940 in the amount of $947,000 to one foreign central bank, were liquidated by January 31, 1941, as stipulated in the agreement. Another loan to the same central bank for $100,000 became effective in August and was paid off in full early in October. No further loans on gold were granted in 1941. ISSUANCE AND SERVICING OF GOVERNMENT OBLIGATIONS As fiscal agents of the Treasury, the Federal Reserve Banks carry on all operations outside of Washington incident to the issue, redemption, and exchange of public debt obligations, except those performed by the Post Office Department in connection with the sale of Series E Defense Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM J9 Savings Bonds. The volume of these operations increased nearly fourfold during 1941, chiefly as a result of the increase in Government issues for defense purposes. In November, the Treasury held a fiscal agency confer ence at the Federal Reserve Bank of Atlanta which was attended by repre sentatives of all Federal Reserve Banks and of the Board of Governors. Pursuant to discussions held at the meeting of the Presidents of the Re serve Banks in Washington on June 11, 1941, the Presidents of three Re serve Banks were designated to serve with a member of the Board as a Com mittee on Defense Savings Securities in cooperation with the Treasury's Defense Savings Staff. As a result of conference with the Secretary, liaison officers were appointed by the Treasury and the Reserve System through whom information as to the policies and the program of the Treasury at Washington and as to the activities in the various States is exchanged for the assistance of those concerned in promoting Defense Savings Bond sales. In December liaison officers of the Federal Reserve Banks and of the Board attended a meeting in Chicago called by the Treasury for the purpose of dis cussing the Defense Savings Bond program. In its own organization the Board established a voluntary payroll deduc tion plan which was put into operation in May 1941, whereby members of its staff may purchase Defense Savings Bonds, and each of the Reserve Banks established plans adapted to the needs of its officers and employees. DEPOSITARY, CUSTODIANSHIP, AND OTHER FUNCTIONS As depositaries of Government funds, the Reserve Banks handled during 1941 and charged against the Treasurer's account a total of 115 million Government checks drawn by disbursing officers throughout the country for defense and other Government expenditures. They also handled and cred ited to the Treasurer's general account millions of checks and other items received by Federal officers in payment of taxes, customs, etc. During the year an average of nearly 4,000 officers and employees of the Federal Reserve Banks, or about 30 per cent of their entire personnel, were engaged in serving some 16 United States Government departments and agencies. This was a substantial increase over normal years and arose for the most part from defense and war activities. As custodians, the Reserve Banks in 1941 handled commodity loans, bought commodities, and performed other services with respect to them for the Commodity Credit Corporation, the Defense Supplies Corpora tion, the Federal Surplus Commodities Corporation, and other similar Government agencies. The commodities responsible for most of this work are staples including cotton, corn, wheat, butter, tobacco, and other domestic farm products, many of which are being transferred under Lend- Lease operations to aid countries allied with us in the war; other impor tant items, comprising strategic and critical materials necessary in con nection with our own war program, are diamond dies, copper, zinc, lead, chrome, rubber, drugs, silk, and kapok. The Banks make disbursement Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2LO ANNUAL REPORT OF BOARD OF GOVERNORS for the purchases upon proper authorization, obtain warehouse receipts which are held in safekeeping, maintain inventory records, etc. The Reserve Banks delivered large amounts of currency over the counter to authorized finance officers of the Army and Navy and made large currency shipments for payroll purposes direct to Army and Navy posts and also to banks in the vicinity of posts and military and naval construction projects. The Reserve Banks also effected transfers of funds to pay the armed forces of the United States in foreign lands and waters. During the first half of the year the Defense Contract Service of the Office of Production Management utilized the facilities of the Reserve Banks in handling work in the field, and in order to cooperate fully with the Defense Contract Service an officer at each Reserve Bank and branch acted as Defense Contract Officer. In the latter half of the year, after the Office of Produc tion Management had established its own field offices, the Reserve Banks and branches continued to cooperate, especially with regard to arrangements for extensions of credit to industry. Throughout most of the year, the War and Navy Departments utilized the services of the Reserve Banks in obtaining reports as to the management, responsibility, and financial condition of contractors and others with whom they have dealings. RESERVE BANK PERSONNEL AND OPERATIONS Under the terms of the Federal Reserve Act the Board of Governors ap points three of the nine directors of each Federal Reserve Bank, who serve terms of three years each. These are designated "Class C" directors by the Act, which provides for election of Class A and B directors by member banks. Of the three directors appointed by the Board, one is designated by the Board as Chairman and one as Deputy Chairman. The Chairman, in addition to his duties as presiding officer, is the official representative of the Board of Governors at the Federal Reserve Bank. APPOINTMENTS On June 3 the Board of Governors appointed Walter H. Lloyd, Editor of The Ohio Farmer; Cleveland, Ohio, a Class C director of the Federal Reserve Bank of Cleveland. On June 4 the Board appointed Randolph E. Paul, member of the law firm of Lord, Day & Lord, New York, New York, a Class C director of the Federal Reserve Bank of New York. Effective July 1 the Board appointed Winfield W. Riefler, Professor of Economics, Institute for Advanced Study, Princeton, New Jersey, a Class C director of the Federal Reserve Bank of Philadelphia to succeed Alfred H. Williams, who became President of the Bank on that date. Clifford V. Gregory, Associate Publisher of Wallaces* Farmer and Iowa Homestead, Des Moines, Iowa, a Class C director and Deputy Chairman of the Federal Reserve Bank of Chicago, died on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 2.1 November 18. The Board of Governors on December 2.6 appointed W. W. Waymack, Vice President and Editor, Des Moines Register and Tribune^ Des Moines, Iowa, a Class C director to succeed Mr. Gregory. Other Class C directors remained unchanged in 1941. The Banking Act of 1935 added to the responsibilities of the Board of Governors with respect to the executive personnel of the Banks by requiring its approval of appointments of Presidents and First Vice Presidents of the Reserve Banks, which are for terms of five years each. Aside from their duties as the chief executive officers of the Reserve Banks, five of the Presi dents serve with members of the Board of Governors as the Federal Open Market Committee and five other Presidents act as alternates. The appointments of Presidents and First Vice Presidents made as of March 1, 1936, expired as of the close of February 18, 1941. Except at the Chicago, St. Louis, and Kansas City Banks, where vacancies had been created by retirements, the existing Presidents and First Vice Presidents were reappointed each for a term of five years. Vacancies that occurred later in the year at the Kansas City, Atlanta, and Philadelphia Banks were filled for the unexpired portion of the five-year term beginning March 1, 1941. At the Federal Reserve Bank of Chicago, President George J. Schaller, who retired on February 18, 1941, was succeeded by C. S. Young, formerly a Vice President of the Bank, who was appointed President for a term of five years beginning March 1, 1941. Effective April 16, 1941, Chester C. Davis, formerly a member of the Board of Governors of the Federal Reserve System, was appointed President of the Federal Reserve Bank of St. Louis for the unexpired portion of the five-year term ending February 2.8, 1946. Mr. Davis succeeded William McC. Martin, who had retired on February 2.8, 1941. As of May 15, 1941, W. S. McLarin, Jr. and Malcolm H. Bryan were appointed President and First Vice President, respectively, of the Federal Reserve Bank of Atlanta, each for the unexpired portion of the five-year term ending February 2.8, 1946. The appointment of Mr. McLarin was to fill the vacancy caused by the death of Robert S. Parker on March xS, 1941, and Mr. Bryan, formerly a Vice President of the Bank, succeeded Mr. McLarin as First Vice President. Effective July 1, 1941, Alfred H. Williams, formerly a Class C director of the Federal Reserve Bank of Philadelphia and Deputy Chairman since Janu ary 1, 1940, was appointed President of that Bank for the unexpired portion of the five-year term ending February 2.8, 1946, to succeed John S. Sinclair who resigned on June 30, 1941. At the Federal Reserve Bank of Kansas City, H. G. Leedy, formerly Vice President and General Counsel of the Bank, was appointed First Vice Presi dent, effective March 1, 1941^ to fill the vacancy caused by the retirement of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

VL ANNUAL REPORT OF BOARD OF GOVERNORS C. A. Worthington. On August z8, 1941, Mr. Leedy was appointed Presi dent to fill the vacancy caused by the retirement of George H. Hamilton on February x8, 1941. H. O. Koppang, formerly examiner in charge of exami nations of the Federal Reserve Banks made by the Board of Governors, was appointed First Vice President of the Kansas City Bank, and succeeded Mr. Leedy as First Vice President. Mr. Koppang took up his new duties on October 16, 1941. OPERATIONS, EARNINGS, AND EXPENSES The greatest expansion in operations of the Federal Reserve Banks during 1941 was in their Government services, as already indicated. The volume of currency, coin, and checks handled also increased substantially. Dis counts for member banks were at about the same low level in 1941 as in 1940, while industrial advances showed some increase. Figures for volume of operations for the past five years are shown in Table 4 on page 35. Discount rates of the Federal Reserve Banks continued unchanged in 1941 at 1 or \\ per cent. Rates on industrial advances and commitments under section 13b of the Federal Reserve Act had been reduced at most of the Federal Reserve Banks during 1940 to permit charging lower rates to finance defense contracts, and some additional reductions along the same line were made in 1941. Rates as low as 4 per cent on direct advances to borrowers prevailed throughout the year at all Federal Reserve Banks. Generally lower rates were in effect on advances to or in participation with financing institutions. Rates in effect on December 31, 1941, are shown in Table 9 on page 41. EARNINGS, EXPENSES, AND DISTRIBUTION OF NET EARNINGS OF FEDERAL RESERVE BANKS IN 1941 AND 1942 [In thousands of dollars] 1941 1940 Current earnings 41,380 43,537 Current expenses 32,963 29,165 Current net earnings 8,417 14,372 Profits on sales of U. S Government securities and other additions to current net earnings in excess of special depreciation allowances and provisions for losses 720 11,488 Net earnings 9,137 25,860 Paid U. S. Treasury (section 13b) 141 82 Dividends paid 8,430 8,215 Transferred to surplus (section 13b) -4 -54 Transferred to surplus (section 7) 570 17,617 Total 9,137 25,860 Transferred from surplus (section 7) to reserves for contingencies 133 12,273 Current earnings, current expenses, and distribution of net earnings of the Federal Reserve Banks for the past two years are shown in the accompanying table. Net earnings amounted to $9,137,000 in 1941, which was $16,713,000 less than in 1940. This decrease resulted from a decrease in current earnings owing to smaller holdings of Government securities, an increase in current expenses, and a decrease in profits arising from sales of Government securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 2-3 The increase in current expenses occurred principally in the cost of Federal Reserve currency and in the operation of the currency and coin and the check collection departments, where the volume of work increased substantially. Expenses were also increased by a relatively large turnover in personnel during the year. Net earnings for 1941 were distributed as follows: Dividends to member banks, paid in accordance with the provisions of the Federal Reserve Act, $8,430,000; payments to the Secretary of the Treasury under provisions of section 13b of the Federal Reserve Act relating to industrial advances, $141,000; and net additions to surplus accounts, $566,000. Of this total $133,000 was transferred to reserves for contingencies. Detailed statements of earnings, expenses, and distribution of net earn ings for the System and for each Federal Reserve Bank are given in Table 5 on pages 36-37. Average daily holdings of bills and securities by Federal Reserve Banks during the last four years and average rates of earnings thereon are shown in the accompanying table. EARNINGS ON BILLS AND SECURITIES [Amounts in thousands of dollars] U. S. Govt, Bills Bills bought securities Industrial Item and Year Total discounted in open direct and advances market guaranteed Daily average holdings: 1938 2,590,597 8,739 543 2,564,877 16,438 1939 2,602,590 5,103 440 2,584,268 12,779 1940 2,429,984 4,046 2,416,761 9,177 1941 2,200,491 4,681 2,187,030 8,780 Earnings: 1938 35,404 124 3 34,446 831 1939 37,581 61 2 36,903 615 1940 42,677 51 42,174 452 1941 40,607 56 40,152 399 Average rate of earnings (per cent): 1938 1.37 1.42 .48 1.34 5.05 1939 1.44 1.20 .53r 1.43 4.81 1940 1.76 1.26 1.75 4.93 1941 1.85 1.20 1.84 4.54 r Revised. Each of the twelve Federal Reserve Banks and twenty-four branches was examined during the year by the Board's Division of Examinations. Two assessments were levied against the Federal Reserve Banks for the general expenses of the Board of Governors, aggregating $1,839,541, or about one-half of one per cent of their average paid-in capital and surplus for the year. Under an arrangement with the Federal Reserve Bank of Philadelphia, the accounts of the Board for the year 1941 were audited by the Auditor of the Federal Reserve Bank of Philadelphia, who certified them to be correct. The total cost of conducting the work of the Board of Gov ernors during the year 1941 was $1,744,995. Details are shown in Table 8 on pages 40-41. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2-4 ANNUAL REPORT OF BOARD OF GOVERNORS AMENDMENTS TO THE FEDERAL RESERVE ACT AND REPORTS ON BILLS LIMITATIONS ON REAL ESTATE LOANS SECURED BY DEFENSE HOUSING INSURED MORTGAGES Section 14 of the Federal Reserve Act was amended by an act approved March z&, 1941, so as to exempt defense housing insured mortgages from the limitations of that section on the amounts and maturities of real estate loans which may be made by national banks. FOREIGN ACCOUNTS IN FEDERAL RESERVE BANKS AND INSURED BANKS An Act approved April 7, 1941, amended section 14(e) of the Federal Reserve Act so as to make it clear that Federal Reserve Banks may open and maintain banking accounts for foreign banks or bankers or for foreign governments without having to establish accounts with such foreign banks, bankers, or governments, or to appoint them as the correspondents or agents of the Federal Reserve Banks. This Act also amended section 15(b) of the Federal Reserve Act so as to provide a procedure whereby Federal Reserve Banks and insured banks may safely make payments of amounts due to foreign governments or foreign central banks in cases where there may be differences of opinion as to who is entitled to receive such payments. The enactment of these amendments was recommended by the State De partment, the Treasury Department, and the Board of Governors in order to meet certain problems growing out of the war in Europe, including the fact that a number of countries whose central banks had accounts with the Federal Reserve Banks had been occupied by invaders. The provisions relating to accounts of foreign governments or foreign central banks held by insured banks in this country were added to meet certain problems growing out of the same general situation. GOVERNMENT OBLIGATIONS AS COLLATERAL FOR FEDERAL RESERVE NOTES By an Act of Congress approved June 30, 1941, the second paragraph of section 16 of the Federal Reserve Act was amended so that the authority of the Board of Governors of the Federal Reserve System to permit direct obligations of the United States to be used as collateral for Federal Reserve notes, which would have expired on June 30, 1941, was extended until June 30, 1943. PROPOSED LEGISLATION During the year, members of the Board and members of the Board's staff were called on frequently to appear before Committees of Congress to give information on proposed legislation. At the request of these Committees, the Board submitted reports on proposed legislation relating to foreign accounts in Federal Reserve Banks and insured banks, the liberalization of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 2-5 the authority of the Reserve Banks to make industrial loans, the extension of the period during which direct obligations of the United States might be pledged by Reserve Banks as collateral for Federal Reserve notes, the tem porary extension of banking facilities in military reservations and Navy yards and stations, and the filing by a borrower or an issuing corporation with the Securities and Exchange Commission of registration statements covering certain loans obtained from, or securities sold directly to, banks or other institutional investors. FEDERAL RESERVE MEETINGS The Federal Open Market Committee, which under the law is charged with the responsibility for the determination of the System's open market policies, met in Washington on March 17, June 10, September 2.7, and De cember n, 1941, and the executive committee of the full Committee met frequently during the year. A record of actions taken by the Committee on questions of policy relating to open market operations is published as an appendix to this report. The Chairmen of the Federal Reserve Banks met with the Board of Gover nors on April 2.6, 1941, for the purpose of discussing administrative policies in which they were jointly concerned. The Conference of Presidents of the Federal Reserve Banks held meetings in Washington on February 7, February 17-18, March 17, June 11, and Sep tember 17-18 for the consideration of current operating problems of the Federal Reserve Banks and for discussions of these matters with the Board. Meetings of the Federal Advisory Council were held on February 16-18, May 18-19, September 14-15, and November 16-17. The Board of Gover nors met with the Council on each of these occasions. The Council is re quired by law to meet in Washington at least four times each year and is authorized by the Federal Reserve Act to consult with and advise the Board on all matters within the jurisdiction of the Board. A recommendation to the Board is published in the appendix to this report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

2.8 ANNUAL REPORT OF BOARD OF GOVERNORS NO. 1.-STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS (IN DETAIL) DECEMBER 31, 1941* ASSETS Amounts in boldface type are those shown in the Board's weekly statement. [In thousands of dollars] Gold certificates with Federal Reserve Agent 8,724,000 Interdistrict settlement fund with Board of Governors 10,255,571 Gold certificates on hand 1,510,444 Gold certificates on hand and due from U. S. Treasury 20,490,015 Redemption fund—Federal Reserve notes 13,668 Total gold reserves 20,503,683 Other cash: United States notes 30,255 Silver certificates 210,359 Standard silver dollars 2,551 National and Federal Reserve Bank notes 1,003 Subsidiary silver, nickels, and cents 16,510 Total other cash 260,678 Total reserves 20,764,361 Bills discounted: Secured by U. S. Government obligations, direct and guaranteed: Discounted for member banks 1,768 For others Total secured by U. S. Govt, obligations, direct and guaranteed 1,768 Other bills discounted: For member banks 1,187 For others Total other bills discounted 1,187 Total bills discounted 2,955 Industrial advances 9,504 U. S. Government securities, direct and guaranteed: Bonds 1,466,805 Notes 777,300 Bills 10,370 Total U. S. Government securities, direct and guaranteed 2,254,475 Total bills and securities 2,266,934 Due from foreign banks 47 Federal Reserve notes of other Reserve Banks 36,287 Uncollected items: Transit items 1,071,055 Exchanges for clearing house 98,506 Other cash items 31,165 Total uncollected items 1,200,726 Bank premises (net) 41,367 Other assets: Industrial advances past due 835 Miscellaneous assets acquired account industrial advances 1,926 Claims account closed banks 110 Miscellaneous assets acquired account closed banks 511 Total 3,382 Less valuation allowances 1,923 Net 1,459 Federal Deposit Insurance Corporation stock2 Fiscal agency and other expenses, reimbursable 2,592 Interest accrued 8,866 Premium on securities 28,132 Deferred charges 661 Sundry items receivable 197 Real estate acquired for banking-house purposes 1,095 Suspense account 166 All other 691 Total other assets 43,859 Total assets 24,353,581 1 Before closing books at end of year. 2 Charged off. See footnote 3, Table 6. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 2.9 No. 1.—Federal Reserve Banks {In Detail)'—Continued LIABILITIES Amounts in boldface type are those shown in the Board's weekly statement. [In thousands of dollars] Federal Reserve notes outstanding (issued to Federal Reserve Banks) 8,611,926 Less: Held by issuing Federal Reserve Banks 402,780 Forwarded for redemption 16,977 419,757 Federal Reserve notes in actual circulation (including notes held by Treasury and by Federal Reserve Banks other than issuing Bank) 8,192,169 Deposits: Member bank—reserve account 12,449,465 U. S. Treasurer—general account 867,450 Foreign 774,062 Other deposits: Nonmember bank—clearing accounts 320,055 Officers' and certified checks 53,429 Federal Reserve exchange drafts 368 All other 212,318 Total other deposits 586,170 Total deposits 14,677,147 Deferred availability items 1,106,929 Other liabilities: Accrued dividends unpaid 867 Unearned discount. 6 Discount on securities 7 Sundry items payable 1,152 Deferred earnings on commitments to make industrial advances 7 Suspense account 209 All other liabilities 636 Total other liabilities 2,884 Total liabilities 23,979,129 CAPITAL ACCOUNTS Capital paid in 142,180 Surplus (sec. 7) 157,065 Surplus (sec. 13b) 26,785 Other capital accounts: Reserve for contingencies 46,898 Earnings and Expenses: Current earnings 41,380 Current expenses 32,963 Current net earnings 8,417 Add—profit and loss 1,537 Deduct—dividends accrued since January 1 8,430 Net earnings available for charge-offs, reserves, and surplus 1,524 Total other capital accounts 48,422 Total liabilities and capital accounts 24,353,581 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

o NO 2.-STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK AT END OF 1940 AND 1941 [In thousands of dollars] Total Boston New York Philadelphia Cleveland Richmond 1941 1940 1941 1940 1941 1940 1941 1940 1941 1940 1941 1940 > ASSETS Gold Certificates on hand and due from U. S. Treasury... 20,490,015 19,750,781 1,162,307 1,136,171 8,164,207 9,757,527 1,224,286 1,046,557 1,627,213 1,331,413 790,447 553,294 > Redemption fund—Federal Reserve notes 13,668 9,692 4,143 1,213 1,047 972 892 1,073 919 660 1,437 1,108 Other cash 260,678 275,109 25,589 26,617 46,842 51,324 19,345 18,754 23,521 19,963 14,393 18,806 w Total reserves 20,764,361 120,035,582 1,192,039 1,164,001 1 8,212,096 9,809,823 1,244,523 1,066,384 1,651,653 1,352,036 806,277 573,208 O!* Bills discounted: Secured by U. S. Government obligations, direct H and guaranteed 1,768 851 260 100 615 245 624 187 100 150 10 Other bills discounted 1,187 2,064 75 491 50 278 87 150 41 Total bills discounted 2,955 1 2,915 260 100 690 736 674 465 187 300 51 9,504 7,538 1,883 974 1,098 1,756 3,468 2,052 233 250 765 781 U. S. Government securities, direct and guaranteed: 1,466,805 1,284,600 113,230 92,213 385,294 379,572 115,799 107,638 145,193 128,649 89,615 68,168 777,300 899,500 60,005 64,568 204,178 265,783 61,364 75,369 76,943 90,082 47,488 47,732 Bills 10,370 800 2,724 819 1,026 634 O Total U. S. Government securities, direct and O 2,254,475 2,184,100 174,035 156,781 592,196 645,355 177,982 183,007 223,162 218,731 137,737 115,900 < Total bills and securities 2,266,934 2,194,553 176,178 157,855 593,984 647,847 182,124 185,524 223,582 219,281 138,502 116,732 47 47 3 3 18 18 5 5 4 4 2 2 o Federal Reserve notes of other Federal Reserve Banks.. 36,287 31,628 635 4,493 4,773 2,700 1,865 2,087 1,947 8,760 3,328 1,200,724 912,398 774 82,594 316,326 234,525 84,370 63,085 149,177 102,207 83,669 76,132 40,767 40,062 116,237 2,833 10,507 9,701 4,866 4,501 4,439 4,587 2,982 2,590 43,724 47,596 2,778 3,168 11,148 13,228 4,061 4,909 4,613 5,074 2,751 2,756 3,177, 24,352,844, 23,261,8661 1,491,186 1,411,089 9,148,5721 10,719,915 1,522,649 1,326,273 2,035,555 1,685,136 1,042,943 774,748 J 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LIABILITIES I 8,192,169 5,930,997 671,656 479,728 2,110,650 1,576,404 575,036 410,704 778,072 540,941 431,489 283,520 Deposits: 12,450,333 14,025,633 568,846 756,465 5,639,629 7,556,979 661,703 703,580 919,517 920,969 451,776 354,132 867,493 368,481 80,782 6,044 220,654 131,605 73,578 13,664 72,247 16,328 23,729 12,636 774,062 1,132,909) 29,543 54,872 306,991 633,979 74,057 75,944 70,240 72,069 32,829 33,322 586,170 599,544 9,527 8,236 475,283 492,197 12,391 26,675 16,902 4,774 6,106 4,245 Total deposits 14,678,058 16,126,567 688,698 825,617 6,642,557 8,814,760 821,729 819,863 1,078,906 1,014,140 514,440 404,335 1,106,929 832,779 104,811 79,913 266,815 201,083 90,557 60,412 143,848 95,814 80,625 70,836 Other liabilities including accrued dividends 2,195 2,196 347 269 143 175 840 875 173 149 246 246 w U Total liabilities 23,979,351 22,892,539 1,465,512 1,385,527 9,020,165 10,592,422 1,488,162 1,291,854 2,000,999 1,651,044 1,026,800 758,937 w CAPITAL ACCOUNTS 142,180 138,579 9,403 9,335 51,806 51,096 11,923 11,882 14,640 14,198 5,709 5,366 > 157,501 157,064 10,949 10,905 56,651 56,447 15,171 15,144 14,345 14,323 5,236 5,247 26,780 26,785 2,874 2,874 7,070 7,070 4,393 4,393 1,007 1,007 3,244 3,244 47,032 46,899 2,448 2,448 12,880 12,880 3,000 3,000 4,564 4,564 1,954 1,954 w 24,352,844 23,261,866 1,491,186 1,411,089 9,148,572 10,719,915 1,522,649 1,326,273 2,035,555 1,685,136 1,042,943 774,748 OS H 14,597 5,226 139 244 460 700 2,617 162 1,043 727 857 540 < FEDERAL RESERVE NOTEfSTATEMENT ' Federal Reserve notes: Issued to Federal Reserve Bank byTederal Reserve 8,611,926 6,256,650 700,116 502,343 2,210,118 1,660,126 602,134 429,044 811,693 569,587 461,916 299,792 Held by Federal Reserve Bank 419,757 325,653 28,460 22,615 99,468 83,722 27,098 18,340 33,621 28,646 30,427 16,272 In actual circulation1 8,192,169 5,930,997 671,656 479,728 2,110,650 1,576,404 575,036 410,704 778,072 540,941 431,489 283,520 Collateral held by agent for notes issued to banks: Gold certificates on hand and due from U. S. 8,724,000 6,379,500 720,000 510,000 2,220,000 1,685,000 615,000 440,000 815,000 575.000 475,000 315,000 2,567 1,688 260 100 690 331 624 372 10 Total collateral held 8,726,567 6,381,188 1 720,260 510,100 1 2,220,690 1,685,331 615,624 440,372 815,000 575,000 475,000 315,010 1 Includes Federal Reserve notes held by the U. S. Treasury or by a Federal Reserve Bank other than the issuing bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

No. 2.—Statement of Condition—Continued [In thousands of dollars Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 1941 1940 1941 1940 1941 1940 1941 1940 1941 1940 1941 1940 1941 1940 ASSETS Gold certificates on hand and due from U. S. Treasury. 551,394 384,635 3,423,782 2,899,447 632,041 494,577 394,665 311,096 557,610 420,712 414,284 280,159 1,547,779 1,135,193 Redemption fund—Federal Reserve notes 451 629 1,122 1,229 643 169 401 332 754 410 566 509 1,293 1,388 17,035 19,055 38,858 36,352 17,602 16,482 5,418 6,576 11,759 15,285 13,784 14,010 26,532 31,885 Total reserves 568,880 404,319 3,463,762 2,937,028 650,286 511,228 400,484 318,004 570,123 436,407 428,634 294,678 1,575,604 1,16^,466 Bills discounted: Secured by U. S. Government obligations, 14 2 50 109 105 48 Other bills discounted 36 18 157 28 107 848 667 109 40 69 Total bills discounted 14 38 18 157 28 50 216 953 715 109 40 69 Industrial advances 477 334 306 269 300 514 219 92 80 244 278 124 545 U. S. Government securities, direct and guaranteed: 62,241 49,278 198,906 146,651 73,695 55,508 43,272 36,611 62,593 62,958 51,197 49,948 125,770 107,406 32,983 34,506 105,406 102,688 39,053 38,868 22,931 25,636 33,168 44,085 27,131 34,974 66,650 75,209 Bills 440 1,406 521 306 443 362 889 Total U. S. Government securities, direct and 95,664 83,784 305,718 249,339 113,269 94,376 66,509 62,247 96,204 107,043 78,690 84,922 193,309 182,615 Total bills and securities 96,155 84,156 306,042 249,765 113,569 94,404 67,073 62,682 97,249 107,838 79,043 85,240 193,433 183,229 2 2 6 6 1 1 * 1 1 1 1 4 4 Federal Reserve notes of other Federal Reserve Banks. 4,110 3,385 3,449 4,136 2,430 2,896 1,514 2,071 2,261 1,367 1,024 3,395 3,864 Uncollected items 42,290 43,435 180,907 126,885 49,586 52,651 651 19,555 47,535 36,161 37,094 29,530 66,962 45,638 1,948 1,991 2,971 3,040 2,155 2,318 26,571 1,367 2,880 3,059 1,137 1,226 2,766 2,849 Other assets 1,797 1,766 5,466 5,069 2,027 1,917 1,338 1,396 1,783 2,198 1,509 1,865 4,083 4,250 1,309 715,182 539,054 3,962,603 3,325,929 820,054 665,415 497,426 404,518 721,642 587,925 548,785 413,564 1,846,247 1,408,300 * Less than $500. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LIABILITIES Federal Reserve notes in actual circulation1. 278,564 195,853 1,719,536 1,262,396 322,068 221,148 206,510 158,709 263,578 211,215 135,271 97,865 699,739 492,514 Deposits: Member bank—reserve account... 322,452 246,999 1,762,132 1,711,100 363,642 326,872 178,535 174,476 344,996 279,690| 306,697 240,275 930,408 754,096 U. S. Treasurer—general account. 28,685 12,547 156,906 84,537 39,646 23,893 52,460 22,857 35,850 16,861 36,989 10,926 45,967 16,583 Foreign bank 26,7221 27,123 91,617 92,992 22,904l 23,2481 16,796 17,0491 22,141 22,4731 22,141! 23,248 58,081 56,590 Other deposits 5,123 5,481 3,4961 5,3241 12,594 7,167 10,815 5,376 1,929 13,164 1,312 2,4461 30,692! 24,459 Total deposits. 382,982 292,150 2,014,151 1,893,953 438,786 381,180 258,606| 219,758 404,9161 332,188| 367,139 276,895 1,065,148 851,728 Deferred availability items 39,912 37,533 180,340 122,197 47,312 51,417 22,554 16,3441 41,734 33,301 34,806] 27,399 53,615 36,530 Other liabilities including accrued dividends. 44 165 153 32 56| 84 81 44 481 72 61 5 3 W 0 Total liabilities 525,616 3,914,192 3,278,699 808,198 487,754 394,892 710,272 576,752 402,220 1,818,507 1,380,775 CAPITAL ACCOUNTS Capital paid in 4,J 4,693 15,613 14,533| 4,417 4,212 3,003 2,975 4,600j 4,462 4,359 4,208 11,827 11,619 Surplus (sec. 7) 5,725 5,725 22,925 22,824 4,966 4,925 3,152 3,152 3,613 3,613 3,976 3,974 10,792] 10.785 Surplus (sec. 13b) 713 713 1,429| 1,4291 529 533 1,000 1,000| 1,137 1,1381 1,263 1,263 2,121 2,121 Other capital accounts 2,362 2,307 8,444 8,444 1,944 1,944 2,517 2,499 2,020 1,960 1,899 1,8991 3,000] 3,000 W 00 Total liabilities and capital accounts 715,182 539,054 3,962,603 820,054 665,415 497,426 404,518 587,925 548,785 413,564 1,846,247 1,408,300 W < Commitments to make industrial advances 1,767 1,874 1,226 2991 28 50 1,500 35 23 3,063 2,441 ^FEDERAL RESERVE>TOTE_STATEMENT_ Federal Reserve notes: Issued to Federal Reserve Bank by Federal Reserve agent 303,618 220,270i 1,763,428 1,294,126 341,354 234,319 213,129 163,870 274,221 219,247 149,933 106,582 780,266 557,344 Held by Federal Reserve Bank 25,054 24,417 43,892 31,730 19,286 13,171 6,619 5,161 10,643 8,032 14,662 8,717 80,527 64,830 In actual circulation1. 278,564 195,853 1,719,536 1,262,396 322,068 221,148 206,510 158,709 263,578 211,215 135,271 492,514 Collateral held by agent for notes issued to banks: Gold certificates on hand and due from U. S. Treasury 310,000 225,000 1,310,000 244,000 214,000 165,500 275,000 225,000| 156,000 111,000 794,000 574,000 Eligible paper 50 190 943 685 Total collateral held. 1,780,000 1,310,000 350,000 244,000 165,690 275,943 225,685 156,000 111,000 794,000 574,000 1 Includes Federal Reserve notes held by the U. S. Treasury or by a Federal Reserve Bank other than the issuing bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 ANNUAL REPORT OF BOARD OF GOVERNORS NO. 3.—HOLDINGS OF UNITED STATES GOVERNMENT SECURITIES BY FEDERAL RESERVE BANKS AT END OF DECEMBER. 1940, JUNE 1941, AND DECEMBER 1941 [In thousands of dollars] (p i R n e a r t e te c r e e o n s f t t ) De 1 c 9 . 4 0 3 1, Ju 1 n 9 e 4 1 3 0, De 1 c 9 . 4 3 1 1, C du h 1 r 9 a i 4 n n 1 g g e Treasury bonds of: 1941-43 14,600 -14,600 1941 57,000 -57,000 1943-47 30,400 30,400 30,400 1943-45 46,500 46,500 46,500 1944-46 53,000 53,000 53,000 1944-54 4 35,000 35,000 35.000 1945-47 2X 63,300 62,300 62,300 -1,000 1945 2H 28,700 28,700 27,200 -1,500 1946-56 24,500 24,500 24,500 1946-48 3 71,800 72,800 72,800 +1,000 1946-49 23,600 23,600 23,600 1947-52 10,600 10,600 10,600 1947 2 31,800 31,800 26,500 -5,300 1948-50* 2 64,800 64,800 +64,800 1948-51 2% 92,800 90,800 90,800 -2,000 1 1 9 9 4 4 8 9 -52 2V2 2 27 1 , , 5 4 0 0 0 0 2 2 1 9 , , 4 5 0 0 0 0 2 2 1 9 , , 4 5 0 0 0 0 +2,000 1949-53 2V2 90,300 90,300 90,300 1 1 9 9 5 5 0 1 - - 5 5 2 4 2 2 V % 2 8 8 0 9 , , 0 7 0 0 0 0 9 8 8 0 , , 8 0 0 0 0 0 8 9 0 9 , , 7 0 5 5 0 0 +9 + ,3 7 5 5 0 0 1951-55 3 44,000 44,000 45,800 +1,800 1951-53 2% 77,900 77,900 77,900 1951-55* 2 12,790 +12,790 1952-54* 2Vi 29,000 23,100 +23,100 1953-55 2 47,800 36,700 31,400 -16,400 1954-56 2H 3,500 +3,500 1955-60 2Vs 68,300 69,300 69,800 +1,500 1 1 1 1 1 9 9 9 9 9 5 6 5 5 6 6 0 6 8 7 - - - - - 5 6 5 6 7 5 8 9 3 2 * * 2 2 2 2 2 V V * H H 4 2 2 4 5 5 6 0 2 , , , 3 4 8 0 0 0 0 0 0 4 5 5 5 7 7 0 2 , , , , 3 0 4 8 0 0 0 0 0 0 0 0 1 4 5 5 5 0 7 6 2 0 1 , , , , , 8 7 0 4 9 0 5 5 1 0 0 0 0 5 0 + + 1 + 5 0 1 6 1 - , , , 7 5 7 9 5 0 5 1 0 0 0 5 Total Treasury bonds 1,280,000 1,359,200 1,462,205 +182,205 Guaranteed bonds: HOLCof 1942-44 2H 2,000 2,000 2,000 HOLCof 1944-52 3 1,000 1,000 1,000 FFMCof 1942-47 3 1,000 1,000 1,000 FFMC of 1944-49 3 600 600 600 Total guaranteed bonds 4,600 4,600 4,600 Treasury notes: Series maturing: Mar. 15, 1941 m 60,200 -60,200 June 15, 1941 \x 58,300 -58,300 Dec. 15, 1941 43,000 43,000 -43,000 Mar. 15, 1942 IX 84,800 84,800 84,800 Sept. 15, 1942 2 66,200 66,200 66,200 Dec. 15, 1942 \X 30,800 30,800 30,800 Mar. 15, 1943* X 39,300 39,300 +39,300 June 15, 1943 1H 102,400 102,400 - 102,400 Sept. 15, 1943 35,700 35,700 35,700 Dec. 15, 1943 1 69,800 69,800 69,800 Mar. 15, 1944 l 109,900 109,900 109,900 June 15, 1944 X 79,400 76,400 76,400 -3,000 Sept. 15, 1944 l 60,600 60,600 60,600 Sept. 15, 1944* X 6,000 6,000 +6,000 Mar. 15, 1945 X 98,400 95,400 95,400 -3,000 Total Treasury notes 899,500 820,300 777,300 -122,200 Treasury bills: Series maturing: March 11, 1942 10,370 +10,370 Total holdings 2,184,100 2,184,100 2,254,475 +70,375 * Taxable issue. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 35 NO. 4.-VOLUME OF OPERATIONS IN PRINCIPAL DEPARTMENTS OF FEDERAL RESERVE BANKS, 1937-1941 [Number in thousands; amounts in thousands of dollars] 1937 1938 1939 1940 1941 NUMBER OF PIECES HANDLED1 Bills discounted: 7 6 2 2 2 7 6 4 3 3 Advances made 7 6 2 1 1 Industrial advances: .2 .4 .2 ,2 .6 Commitments to make industrial ad- .1 .2 .1 .2 .2 Bills purchased in open market for own ac- 2 .2 .1 2,257,892 2,089,987 2,134,908 2,248,290 2,529,703 2,730,387 2,676,248 2,644,418 2,705,344 3,216,761 1,044,553 1,098,115 1,157,140 1,184,356 1,265,977 Co'lection items handled: U. S. Government coupons paid2 18,566 17,802 17,145 15,444 15,047 All other 6,705 6,389 6,177 6,094 6,392 Issues, redemptions, and exchanges by fiscal agency department: U. S. Government direct obligations 3,892 3,456 3,528 3,752 13,479 All other 661 575 1,162 485 411 Transfer of funds 980 853 814 780 840 AMOUNTS HANDLED Bills discounted: 16,187 10,472 11,285 8,384 9,222 Advances made 516,852 226,687 75,690 61,500 115,956 Industrial advances: 4,932 6,500 3,805 2,860 15,695 Commitments to make industrial ad vances 6,978 11,217 4,621 4,374 19,530 Bills purchased in open market for own ac- 25,252 2,781 •2,133 10,199,559 8,883,728 9,285,921 r9,538,629 11,283,817 287,708 271,128 276,589 288,140 327,555 Checks handled 255,453,609 231,820,217 255,937,980 280,436,092 362,098,173 Collection items handled: U. S. Government coupons paid2 865,465 854,273 890,620 902,288 926,960 All other 6,159,828 5,321,443 5,442,645 5,068,674 6,003,082 Issues, redemptions, and exchanges by fiscal agency department: U. S. Government direct obligations 19,304,020 24,450,791 24,462,659 20,189,983 33,278,154 All other 1,691,863 2,581,611 4,537,228 1,687,194 3,262,012 94,596,861 82,219,749 88,080,756 92,105,910 118,423,057 1 r Revised. 1 Two or more checks, coupons, etc., handled as a single item are counted as one "piece". 2 Includes coupons from obligations guaranteed by the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NO. 5.—EARNINGS AND EXPENSES OF FEDERAL* RE SERVE BANKS DURING 194l Total Boston Y N o ew rk d P e h lp il h a i a C l l a e n v d e m Ri o c n h d Atlanta Chicago L S ou t. i s M ap i o n l n is e K C an it s y a s Dallas Fra S n a c n i sco CURRENT EARNINGS Discounted bills $55,934 $1,516 $27,779 $4,325 $2,364 $655 $479 $1,236 $1,243 $2,649 $9,772 $3,375 $541 U. S. Government securities 40,151,501 2,963,907 11,197,274 ,179,419 4,031,178 ,281,196 1,706,262 4,884,837 1,935,696 1,191,362 1,908,346 ,548,048 3,323,976 Industrial advances 399,319 53,846 62,822 138,284 14,709 47,030 7,605 17,323] 3,015 20,791 8,504 12,147 13,243 Commitments to make industrial advances. 90,270 3,286| 7,103 1,086 10,350 9,678] 2,7961 4,955] 4,179 416! 448 274) 45,699 All other 683,071 22,576 119,674 21,048 65,293 25,788 8,258 180,744 21,763 8,019 155,410 12,770 41,728 Total current earnings 41,380,095 3,045,131 11,414,652 3,344,162 4,123,894 2,364,347 1,725,400 5,089,095 1,965,896 1,223,237 2,082,480 1,576,614 3,425,187 CURRENT EXPENSES Operating expenses: Salaries: Officers 2,271,3151 129,810 497,272 124,211 183,835 147,470 142,612 234,9661 175,648 110,669 167,253 130,535 227,034 Employees 21,066,352 1,273,496 5,330,013 1,445,372 1,799,898 1,098,241 1,107,909 2,954,422 1,122,214 711,159|1 ,198,782 1,283,641 1,741,205 Retirement System contributions for cur rent service 1,136,930 63,701 288,775 77,986 94,162 61,874 60,924] 156,816 64,918 39,823 67,184 61,399 99,368 Legal fees 66,087 30,395 7 7,067 12,319i 17 202 163 9,667 2,179] 24 4,047 Directors' fees and expenses 136,664 7,271 12,637 8,9401 7,998] 7,983 15,225 9,198 10,816 10,067 19,753 10,414 16,362 Federal Advisory Council, fees and ex penses 16,139 1,050 1,081 767 903 1,350 1,397 1,490] 1,395 3,350 Traveling expenses (other than of directors and members of Federal Advisory Council) 403,628 23,302 53,550] 29,552 35,4441 29,500 33,538 55,241 28,301 25,809 24,224 25,645 39,522 Postage and expressage 4,487,685 502,260] 771,173 333,009 422,594 378,579 266,379] 566,618 213,4951 161,837| 254,971 215.669J 401,101 Telephone & telegraph 540,975 24,818 105,115 35,053 50,440 31,300 48,222 40,411 42,293 23,432 45,691 39,861 54,339 Printing, stationery, and supplies 1,455,582 142,951 346,046] 102,045 117,411 75,196 77,232 198,4641 87,542 57,204| 69,782 67,488 114,221 Insurance on currency and security ship ments 294,520 46,674 52,578 23,313 25,659 28,229 17,862 32,748] 7,859| 8,741 10,688 10,232 29,937 Other insurance 197,042 11,835 30,342 16,417 14,606 11,594] 15,140 17,337 15,246 13,841 18,854 14,138 17,692 Taxes on bank premises. 1,498,243 141,705 483,387 77,617] 136,938j 71,343 62,081 181,7861 52,501 66,923 94,583] 33,717 95,662 Depreciation on bank building 1,189,978 55,832 222,772 126,532 147,840 80,411 42,549 80,954 52,009 29,578 178,767 90,219 82,515 Light, heat, power, and water 423,413 31,583 82,652 28,563 47,267 25,207 35,273 46,554 28,644 19,806 19,034| 31,902 26,928 Repairs and alterations to bank building 204,322 5,001 37,125 28,172 17,193 4,393 8,527 21,783 9,546 15,369 15,805 11,910 29,498 Rent 169,236 1,500 20,386 811 74,274 18,257 644 1,656 3,491] 990 25 390 46,812 Furniture and equipment 671,390 40,543 92,065 122,927 109,082] 40,055 28,719 65,725 27,572 26,629 30,138| 27,660 60,275 All other 763,632 55,185 95,453 87,236] 56,250 36,2961 61,564 105,4061 49,176 47,57l| 43,205 55,317 70,973 Total operating expenses 36,993,133 2,588,812 8,522,224 2,675,873 3,354,291 2,146,695 2,025,320 4,771,817 1,992,784 1,380,512 2,262,408 2,111,556 3,160,841 Less reimbursements for certain fiscal agency and other expenses 8,457,586 448,290] 1,761,546] 392,723 462,972 350,411 751,123 1,189,924] 548,115 395,104 564,111 871,414 721,853 Net operating expenses 28,535,547 2,140,522 6,760,678 2,283,150 2,891,319 1,796,284 1,274,197 3,581,893 1,444,669 985,408 1,698,297 1,240,142 2,438,988 Assessment for expenses of Board of Governors 1,839,541 131,552 653,498 178,866] 168,821] 79,084 63,664 221,803 55,265 40,615] 52,5761 53,913 139,884 Federal Reserve currency: Original cost 2,397,298 225,728 524,955 170,747 281,493 193,115 127,183 393,103 100,715, 44,141 57,635 62,678 215,805 Cost of redemption 190,764 12,535 35,629 12,934 18,802 17,464 14,051 30,735 8,722 5,265 8,468 7,597 18,562 Total current expenses 32,963,150 2,510,337 7,974,760 2,645,697 3,360,435 2,085,947 1,479,095 4,227,534 1,609,371 1,075,429 1,816,976 1,364,330 2,813,239 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PROFIT AND LOSS Current earnings (above) 41,380,095 3,045,131 11,414,652 3,344,162 4,123,894 2,364,347 1,725,400 5,089,095 1,965,896 1,223,237 2,082,480 1,576,614 3,425,187 32,963,150 2,510,337 7,974,760] 2,645,697 3,360,435 2,085,947 1,479,095 4,227,534 1,609,371 1,075,429 1,816,976 1,364,330 2,813,239 Current expenses (above) 3,439,892 763,459 246,305 861,561 265,504 611,948 Current net earnings Additions to current net earnings: Profits on sales of U. S. Government 1,327,171 96,645 386,051 110,404 132,273 69,594 56,036 147,895 60,214 40,889 64,578 51,077 111,515 securities 147,627 17,187 9,099 13,810 50 8,261 70,652 1,166 313 17,230 1,520 3,549 4,790 All other Total additions 1,474,798 113,832 395,150 77,855 126,688, Deductions from current net earnings: Losses and allowances for losses on indus trial advances (net) ; 39,254 15,735 4,141 4,8541 7,794 16,024 Charge-offs and special depreciation on bank premises 600,357 479,889 120,468 All other 56,265 3,056 3,242 7,784 157 309 726 Total deductions 40,673 532,757 768 212,443 29,331 213,843 120,777 7,663 16,750 Net additions 73,159 -137,607 144,766 97,357 -60,250 50,456 99,555 Net earnings 9,137,581 607,953 3,302,285 343,662 296,275 198,264 258,731 711,503 Paid U. S. Treasury (sec. 13b) 141,465 3,134 81,360 15,458 13,808 27,215 490, Dividends paid 8,429,936 561,233 3,097,873 713,446 869,942 330,180 289,109) 896,7661 258,762 179,790 271,913 257,158 703,764 Transferred to surplus (sec. 13b) -4,333 -3,832 -501 Transferred to surplus (sec. 7) 570,513 204,412 27,105 "54 ,'553 41,345 17,984 60,159 "i*573 "'7,' 739 Surplus (sec. 7), January 1 157,065,064 1,905,746 56,446,989 ,144,298 14,322,790 ,247,219 ,724,628 1,824,268 4,924,976 ,152,420 ,612,681 3,974,490 ,784,559 Addition, as above 570,513 43,586 204,412 27,105 22,825 -11,252 54,553 100,484 41,345 17,984 60,159 1,573 7,739 Transferred to reserves for contingencies -132,696 -54,553 -17,984 -60,159 Surplus^(sec. 7), December 31 157,502,8 56,651,401 15,171,403 14,345,615 5,235,967 5,724,628 4,966,321 3,152,420 3,612,681 3,976,063 10,792,298 1 Net recoveries. 2 Net additions. ^4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

00 NO. 6.-CURRENT EARNINGS, CURRENT EXPENSES, AND NET EARNINGS OF FEDERAL RESERVE BANKS AND DISPOSITION OF NET EARNINGS, 1914-1941 Earnings and expenses Disposition of net earnings Direct charges Franchise tax Paid to U. S. Transferred Transferred to surplus e C a u rn rr i e n n g t s e C x u p r e r n e s n e t s ear N ni e n t gs1 Div p i a d id e nds p T ai r d e a to s u U r . y 2 S . ( T S r e e c a . s 1 u 3 r b y ) t ( o S e s c u . r 1 p 3 l b u ) s to ( S s e u c r . p 7 lu ) s (Sec. 7)3 All Federal Reserve Banks by years: 1914-15 $2,173,252 $2,320,586 $-141,459 $217,463 1916 5,217,998 2,273,999 2,750,998 1,742,774 1917 16,128,339 5,159,727 9,582,067 6,804,186 $1,134,234 $1,134,234 1918 67,584,417 10,959,533 52,716,310 5,540,684 48,334,341 1919 102,380,583 19,339,633 78,367,504 5,011,832 2,703,894 70,651,778 1920 181,296,711 28,258,030 149,294,774 5,654,018 60,724,742 82,916,014 1921 122,865,866 34,463,845 82,087,225 6,119,673 59,974,466 15,993,086 1922 50,498,699 29,559,049 16,497,736 6,307,035 10,850,605 -659,904 1923 50,708.566 29,764,173 12,711,286 6,552,717 3,613,056 2,545,513 1924 38,340,449 28,431,126 3,718,180 6,682,496 113,646 -3,077,962 1925 41,800,706 27,528,163 9,449,066 6,915,958 59.3C0 2,473,808 1926 47,599,595 27,350,182 16,611,745 7,329,169 818,150 8,464,426 1927 43,024,484 27,518,443 13,048,249 7,754,539 249,591 5,044,119 $500,000 1928 64,052,860 26,904,810 32,122,021 8,458,463 2,584,659 21,078,899 1929 70,955,496 29,691,113 36,402,741 9,583,913 4,283,231 22,535,597 1930 36,424,044 28,342,726 7,988,182 10,268,598 17,308 -2,297,724 1931 29,701,279 27,040,664 2,972,066 10,029,760 -7,057,694 1932 50,018,817 26,291,381 22,314,244 9,282,244 2,011,418 11,020,582 1933 49,487,318 29,222,837 7,957,407 8,874,262 -916,855 1934 48,902,813 29,241,396 15,231,409 8,781,661 $-60,323 6,510,071 139,299,557 1935 42,751,959 31,577,443 9,437,125 8,504,974 $297,667 27,062 607,422 1936 37.900,639 29,874,023 8,512,433 7,829,581 227,448 102,880 352,524 1937 41,233,135 28,800,614 10,801,247 7,940,966 176,625 67,304 2,616,352 731,313 1938 36,261,428 28,911,608 9,581,954 8,019,137 119,524 -419,140 1,862,433 448,835 1939 38,500,665 28,646,855 12,243,365 8,110,462 24,579 -425,653 4,533,977 1,964,919 1940 43,537,805 29,165,477 25,860,025 8,214,971 82,152 -54,456 17,617,358 12,272,706 1941 41,380,095 32,963,150 9,137,581 8,429,936 141,465 -4,333 570,513 132,696 Total—1914-1941 1,400,728,018 679,600,586 657*255,481 194,961,472 149,138,300 1,069,460 4-766,659 312,852,908 155.350.026 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Aggregate for each Federal Reserve Bank 1914-1941: Boston $94,680,024 $49, 240,191 $43,574,581 $14,191,873 $7,111,395 $94,900 $-3,155 $22,179,568 $11,230,237 New York 411,760,334 165, 475,437 237,041,984 65,784,428 68,006,262 82,987 -682,388 103,850,695 47,199,295 Philadelphia 109,893,031 52, 284,398 55.568,784 18,591,261 5,558,901 431,345 194,990 30,792,287 15,620,883 Cleveland 125,855,645 63, 224,525 54,772,760 19,696,519 4,842,447 67,434 -8,446 30,174,806 15,829,192 Richmond 67,335,679 37, 388,588 25,988,761 8,283,726 6,200,189 80,522 -176,443 11,630,767 6,364,800 Atlanta 65,008,465 31, 303,265 27,622,634 6,936,457 8,950,561 23,876 -44,304 11,756,044 6,031,416 Chicago 192,458,481 88, 389,901 92,600,205 22,693,280 25,313,526 138,318 11,681 44,443,400 21,518,648 St. Louis. 60,499,501 34, 613,674 20,627,198 6,977,663 2,755,629 5,948 -17,676 10,905,634 5,939,311 Minneapolis 45,184,997 24, 754,319 18,079,411 4,871,860 5,202,900 34,809 -7,447 7,977,289 4,824,868 Kansas City 67,319,112 41, 466,916 22,478,064 6,602,053 6,939,100 35,204 -8,388 8,910,095 5,297,413 Dallas 50,008,955 30, 511,174 15,379,205 6.272,011 560,049 74,117 10,821 8,462,207 4,486,145 San Francisco 110,723,794 60, 948,198 43,521,894 14,060,341 7,697,341 -35,904 21,800,116 11,007,818 1 Current earnings less current expenses, plus other additions and less other deductions. 2 The Banking Act of 1933 eliminated the provision in the Federal Reserve Act requiring payment of a franchise tax. 3 Direct charges to surplus (sec. 7) represent amounts transferred to reserves for contingencies, except as follows: 1927—$500,000, depreciation on bank premises; 1934—$139,299,557, cost of Federal Deposit Insurance Corporation stock purchased by Federal Reserve Banks. 4 In 1935 the Federal Reserve Bank of Boston credited $1,810 and the Federal Reserve Bank of St. Louis charged $1,176 direct to surplus (sec. 13b). Total payments received from 0 the Secretary of the Treasury under section 13b of the Federal Reserve Act to the end of 1941 and credited to surplus (sec. 13b) amounted to $27,546,311. m > NO. 7.-NUMBER AND SALARIES OF OFFICERS AND EMPLOYEES OF FEDERAL RESERVE BANKS [December 31, 1941] w H Federal Reserve Bank President Other officers E w m ho p s l b e o u y s r e a s e l e a s d , r i e t e o s x c a b e a r p e n t k r t e h i o m s e E a m re p l r o e y im ee b s u w rs h e o d s e t o s a b l a a n r k ie s Total < (including branches) Annual salary Number s A a n la n r u ie a s l Number s A a n la n r u ie a s l Number s A a n la n r u i a e l s Number s A a n la n r u i a e l s Boston $30,000 10 $92,932 743 $1,077,632 170 $215,489 924 $1,416,053 45,000 40 454,432 2,155 4,133,267 899 1,597,889 3,095 6,230,588 Philadelphia 22,000 10 99,700 757 1,211,787 176 295,288 944 1,628,775 25,000 19 159,350 975 1,662,640 162 290,640 1,157 2,137,630 Richmond 21,000 18 130,256 585 880,095 190 276,290 794 1,307,641 17,500 22 126,400 458 616,378 404 515,252 885 1,275,530 30,000 24 213,600 1,404 2,116,197 567 873,071 1,996 3,232,868 25,000 20 146,456 597 886,713 206 316,488 824 1,374,657 25,000 12 85,870 315 485,680 262 372,320 590 968,870 18,000 18 131,400 508 797,077 304 442,491 831 1,388,968 Dallas 20,000 15 113,440 428 678,710 313 458,731 757 1,270,881 25,000 26 201,904 882 1,451,511 377 600,384 1,286 2,278,799 Total 303,500 234 1,955,740 9,807 15,997,687 4,030 6,254,333 14,083 24,511 260 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 ANNUAL REPORT OF BOARD OF GOVERNORS NO. 8—RECEIPTS AND DISBURSEMENTS OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM FOR THE YEAR 1941 General fund account: Balance January 1, 1941: Available for general expenses of the Board $166,525.62 Available for expenses chargeable to Federal Reserve Banks 20,311.10 Total $186,836.72 RECEIPTS Available for general expenses of the Board: Assessments on Federal Reserve Banks for estimated general expenses of the Board $1,839,540.95 Subscriptions to the Federal Reserve Bulletin 6,528.56 Other publications, sales 9,616.14 Reimbursements for leased wire service 56,573.67 *Pay roll allotments for purchase of Defense Savings Bonds.. 22,704.45 Miscellaneous receipts, refunds, and reimbursements 22,406.49 Total receipts available for general expenses of the Board 1,957,370.26 Available for expenses chargeable to Federal Reserve Banks: Assessments on Federal Reserve Banks for: Cost of printing Federal Reserve notes 1,601,860.24 Expenses of leased wire system (telegraph) 45,001.25 Expenses of leased telephone lines 15,696.80 Expenses of Federal Reserve Issue and Redemption Division (office of Comptroller of the Currency) 54,108.35 Miscellaneous expenses 705.35 Total receipts available for expenses chargeable to Federal Reserve Banks 1,717,371.99 Total receipts 3,674,742.25 Total available for disbursement 3,861,578.97 DISBURSEMENTS For expenses of the Board: General expenses of 1941 (per detailed state ment) $1,744,995.53 Less accounts unpaid December 31, 1941 41,825.35 1,703,170.18 Expenses of 1940 paid in 1941 25,778.72 Expenses of leased wire service, reimbursable 56,098.88 Plans for alteration and addition to building 62,863.23 •Purchase of Defense Savings Bonds and refunds 18,079.27 Miscellaneous refunds and items reimbursable 12,191.22 Total disbursements for expenses of the Board 1,878,181.60 For expenses chargeable to Federal Reserve Banks: Cost of printing Federal Reserve notes 1,554,522.09 Expenses of leased wire system (telegraph) 45,001.25 Expenses of leased telephone lines 16,749.80 Expenses of Federal Reserve Issue and Redemption Division (office of Comptroller of the Currency) 54,108.35 Miscellaneous expenses 4,998.65 Total disbursements for expenses chargeable to Federal Reserve Banks. 1,675,380.14 Total disbursements 3,553,561.74 Balance in general fund account December 31, 1941: Available for general expenses of the Board 241,089.10 •Available for purchase of Defense Savings Bonds 4,625.18 Available for expenses chargeable to Federal Reserve Banks 62,302.95 $308,017.23 * Reflects operations of Voluntary Pay Roll Deduction Plan for Purchase of Defense Savings Bonds for Board's employees. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 41 No. 8—Receipts and Disbursements—Continued STATEMENT OF EXPENSES OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, 1941 PERSONAL SERVICES Salaries $1,341,627.62 Retirement contributions 65,394.11 Total Personal Services , $1,407,021.73 NON-PERSONAL SERVICES Traveling Expenses 70,640.96 Postage and Expressage 1,436.46 Telephone and Telegraph 65,489.21 Printing and Binding 108,660.59 Stationery and Supplies 19,250.22 Furniture and Equipment 16,222.99 Books and Subscriptions 6,750.85 Light, Heat, and Power 25,529.27 Repairs and Alterations (Building and Grounds) 5,642.22 Repairs and Maintenance (Furniture and Equipment) 2,251.12 Medical Services and Supplies 692.87 Insurance 2,048.61 Miscellaneous 13,358.43 Total Non-personal Services 337,973.80 GRAND TOTAL $1,744,995.53 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4* ANNUAL REPORT OF BOARD OF GOVERNORS NO. 9.-FEDERAL RESERVE BANK DISCOUNT, INTEREST, AND COMMITMENT RATES, AND BUYING RATES ON ACCEPTANCES [Per cent per annum] In effect December 31, 1941 B to o n s Y N o e r w k P a p d h h e i ia l l C l l a e n v d e m Ri o c n h d la A n t t a c C a h g i o L S ou t. is n M o e l i a i n p s K C s a i a t s n y D la a s l F c S i r s a a c n n o Rediscounts for and ad vances to member banks under sees. 13 and 13a of the Federal Reserve Act except last paragraph of sec. 13: Secured by direct and eligible guaranteed obligations of the Al U l o n t i h te e d r States 1 1 (*)1 1 1 1 H H (*)1 IK K 1 1 M M IK 1 iy 2 1 IK 1 \ I y K2 (*)IK 1 (X)1K 1 I I K K Advances to member banks under sec. 10(b) of the Federal Reserve Act 2 2 2 2 2 2 2 2 2 2 2 2 Advances to individuals, partnerships or corpora tions, secured by direct obligations of the United States (last paragraph of sec. 13 of the Federal Re serve Act): To banks (including Adva T n o n c o e o s n t h m e d e r i s m r e b c e t r t b o a nk in s d ) us 2V 1 2 W2 1 V 1H /i (2)1 s K y 2 \y 42 iy 2 1 4 1 4 1 IK 3 2K 1 2y 1 2 IH 4 trial or commercial or ganizations under sec. 13b of the Federal Reserve Act. 3^-6 4-6 sy2-6 sy2~5 4-6 4-6 3-6 3H- 3-6 4-6 4-6 4-6 Advances to or in participa tion with financing insti tutions under sec. 13b of the Federal Reserve Act: On portion for which institution is obli - On g a r t e e m d3 a ining portion3... sy 3 2 2 2- - 5 3 ( iy 62) ( < 4 • ) ) ( ( 5 7 ) ) 3 4 4-6 4 3 3 - - 6 6 1K ( - 6 2 ) 3 3- - 6 6 4 4 f 4-6 4 3 4 - - 4 5 Commitments to make ad vances under sec. 13b of the Federal Reserve Act .. M-i 1-2 VT-2 y±-\ 1-2 1-2 K-2 (8)1 1-2 (8)1 1 lA~2 Minimum buying rates on prime bankers' accept ances payable in dollars ... (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) 1- 15 days9 y 16- 30 days V 2 i 31- 45 days Vi 46- 60 days Vi 61- 90 days y 2 91-120 days 121-180 days i 1 \ -JL. 1 The same rate applies to United States Government securities bought under repurchase agreement. * Two and one-half per cent to lenders other than banks. 3 The Federal Reserve Banks of New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, and Dallas may charge same rate as charged borrower by financing institution, if lower than rate shown. * One per cent less than rate charged borrower by financing institution. 5 One per cent less than rate charged borrower by financing institution with minimum of three per cent (see note 3). 6 Same as rate charged borrower by financing institution. 7 One-half of one per cent less than rate charged borrower by financing institution with minimum of four per cent (see note 3). 8 Minimum charge one-fourth of one per cent. 9 This rate also applies to acceptances bought under repurchase agreement, which agreements are always for a period of 15 days or less. 10 The same minimum rates in effect at the Federal Reserve Bank of New York apply to purchases, if any, made by other Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 43 NO. 10.-MAXIMUM RATES ON TIME DEPOSITS Maximum rates that may be paid by member banks as established by the Board of Governors under provisions of Regulation Q [Per cent per annum] Nov 1, 1933, Feb. 1, 1935, In effect to to beginning Jan. 31,1 935 Dec. 31, 1935 Jan 1, 1936 Savings deposits 3 Postal Savings deposits 3 IV* V-A Other time deposits payable in: 6 months or more 3 90 days to 6 months 3 2 Less than 90 days 3 1 NOTE.—Maximum rates that may be paid by insured nonmember banks as established by the Federal Deposit Insurance Corporation, effective February 1, 1936, are the same as those in effect for member banks. Under Regulation Q the rate payable by a member bank may not in any event exceed the maximum rate payable by State banks or trust companies on like deposits under the laws of the State in which the member bank is located. NO. 1 l.-MEMBER BANK RESERVE REQUIREMENTS [Per cent of deposits] Classes of deposits and banks A F u e g b . . 1 2 6 8 , , 1 1 9 9 3 3 6 7 - M A a p r r . . 3 1 0 , , 1 1 9 9 3 3 7 7 - A M p a r y . 1 1 5 , , 1 1 9 9 3 37 82 -A O p c r. t . 1 3 6 1 , , 1 1 9 9 3 4 8 1 - No E v f . f e 1 c , t i 1 v 9 e 4 12 On net demand deposits Central reserve city. 19^ 22H 26 22H 26 Reserve city 15 WA 20 UA 20 Country 10M 12M 14 12 14 On time deposits: All member banks... 4K 5M 6 1 Gross demand deposits minus demand balances with domestic banks (except private banks and American branches of foreign banks) and cash items in process of collection. 2 Percentages in this column are double the basic statutory requirements, which were in effect June 21, 1917-August 15, 1936. NO. 12.-MARGIN REQUIREMENTS i Prescribed by Board of Governors of the Federal Reserve System in accordance w ith Securities Exchange Act of 1934 [Per cent of market value] Apr. 1, 1936- Nov. 1, 1937 Oct. 31, 1937 and after For extensions of credit by brokers and dealers on listed securities, under Regulation T 55 40 For short sales, under Regulation T (2) 50 For loans by banks on stocks, under Regulation U 40 (3)55 1 Regulations T and U limit the amount of credit that may be extended on a security by prescribing a maximum loan value, which is a specified percentage of its market value at the time of the extension; the "margin requirements" sh6wn in this table are the difference between the market value (100%) and the maxi mum loan value. 2 Requirement under Regulation T was the margin "customarily required" by the broker. 3 Regulation U became effective May 1, 1936. NOTE.—Regulations T and U also provide special margin requirements on "omnibus" accounts and loans to brokers and dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NO. 13.-ALL MEMBER BANKS-CONDITION ON DECEMBER 31, 1941, BY CLASSES OF BANKS [Amounts in thousands of dollars] Central reserve city All member All national All State member banks1 Reserve city Country banks m b e a m n b ks e r m b e a m n b ks e r m b e a m nk b s e 1 r m b e a m n b k e s1 r New York Chicago ASSETS Loans (including overdrafts) 18,020,904 11,725,496 6,295,408 4,072,172 954,288 7,104,682 5,889,762 United States Government direct obligations 15,706,687 9,755,221 5,951,466 5,585,248 1,311,338 5,293,564 3,516,537 O Ob b l l i i g g a a t t i i o o n n s s g of u a S r t a a n te te s e a d n d b y p o U l n it i i t c e a d l S su ta b t d e i s v i G si o o v n e s r .. n m .^ ent 3 3 , , 8 0 3 8 2 9 , , 0 6 3 0 5 6 2 2 , , 0 2 2 8 0 3 , , 4 7 1 6 3 0 1 1 , , 5 0 4 6 8 9 , , 2 1 7 9 5 3 1,6 7 7 2 9 8 , , 4 6 4 96 4 1 18 1 2 8 , , 3 8 4 1 4 1 1,1 9 7 56 2 , , 4 9 7 6 3 1 1,2 8 2 6 2 0 , ,8 0 1 9 9 3 % Obligations of Government corporations and agencies not guaranteed by United > States 557,231 331,566 225,665 217,157 51,340 175,943 112,791 f Other bonds, notes, and debentures 1,921,852 1,252,670 669,182 471,271 117,941 504,057 828,583 Corporate stocks (including Federal Reserve Bank stock) 392,244 201,728 190,516 141,625 23,928 139,748 86,943 Total loans and investments 43,520,559 27,570,854 15,949,705 12,895,613 2,759,990 15,347,428 12,517,528 m Reserve with Federal Reserve Banks 12,396,344 7,399,238 4,997,106 5,105,316 1,020,645 4,060,488 2,209,895 o Cash in vault ^ 1,086,752 779,420 307,332 93,061 42,727 425,150 525,814 Demand balances with banks in United States (except private banks and Ameri can branches of foreign banks) 6,147,354 4,656,120 1,491,234 139,764 294,423 2,559,516 3,153,651 Other balances with banks in United States 98,519 74,973 23,546 1,588 3,797 30,521 62,613 Balances with banks in foreign countries 11,134 7,582 3,552 6,485 284 3,193 1,172 Due from own foreign branches 4,215 4,078 137 137 4,078 B C a a n sh k i p t r e e m m s is in e s p o ro w c n e e s d s a o n f d c o f l u l r e n c i t t i u o r n e and fixtures 3, 9 3 1 8 1 2 , , 2 5 1 8 3 6 2,0 5 6 8 0 8 , , 0 8 1 7 7 5 1,3 3 2 2 2 2 , .3 5 3 6 8 9 1,2 1 9 9 0 9 , , 4 92 3 0 4 2 1 04 9 , , 1 0 4 1 9 3 1, 3 4 2 3 4 9 . , 6 4 6 9 8 2 3 4 6 4 7 8 , , 6 5 1 1 2 1 o > Other real estate owned ; ; 179,139 81,692 97,447 21,127 1,554 68,043 88,415 0 Investments and other assets indirectly representing bank premises or other real estate 98,449 54,036 44,413 10,169 718 65,648 21,914 o Customers' liability on acceptances 72,427 40,112 32,315 43,558 1,675 23,772 3,422 O In t c h o e m r e a s a s c e c ts r ued but not yet collected 1 1 1 0 0 1 , , 5 5 8 7 6 9 6 5 4 1 , , 1 8 4 8 5 5 4 49 6 , , 6 4 9 4 4 1 3 1 9 5 , , 9 3 2 3 7 0 8 5 , , 6 4 0 4 9 0 4 3 1 5 , , 8 7 3 4 0 0 4 2 5 0 , , 0 2 6 2 9 0 o o < Total assets 68,120,856 43,433,027 24,687,829 19,862,429 4,363,024 24,429,567 19,465,836 LIABILITIES Demand deposits—Total 49,230,638 31,038,022 18,192,616 17,119,289 3,581,284 17,403,048 11,127,017 o Individuals, partnerships, and corporations 33,061,264 20,445,710 12,615,554 11,282,381 2,152,174 11,126,938 8,499,771 United States Government^. 1,709,333 1,088,443 620,890 866,272 127,186 490,642 225,233 States and political subdivisions 3,065,567 2,232,509 833,058 318,656 232,766 1,143,880 1,370,265 Banks in United States 9,713,951 6,356,435 3,357,516 3,594,756 1,026,999 4,302,130 790,066 Banks in foreign countries 671,186 331,113 340,073 607,150 8,264 53,509 2,263 Certified and officers' checks, cash letters of credit and travelers' checks, etc... 1,009,337 583,812 425,525 450,074 33,895 285,949 239,419 Time deposits—Total 12,486,751 8,420,374 4,066,377 812,565 475,820 4,910,094 6,288,272 Individuals, partnerships, and corporations: Savings deposits 10,513,338 7,185,971 3,327,367 407,729 424,868 4,148,305 5,532,436 Certificates of deposit 611,226 463,754 147,472 9,030 25,982 135,630 440,584 Christmas savings and similar accounts 30,136 20,337 9,799 1,067 203 10,832 18,034 Open accounts 723,343 264,688 458,655 360,202 24,567 247,536 91,038 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Postal savings2. 50,473 36,347 14,126 19,896 30,577 States and political subdivisions 418,220 350,626 67,594 29,015 200 243,402 145,603 Banks in United States 132,923 93,339 39,584 180 102,743 30,000 Banks in foreign countries 7,092 5,312 1,780 • 5,342 1,750 Total deposits 61,717,389 39,458,396 22,258,993 17,931,854 4,057,104 22,313,142 17,415,289 Due to own foreign branches ; 148,921 114,088 34,833 148,921 Bills payable, rediscounts, and other liabilities for borrowed money 4,312 3,778 534 4,312 Acceptances outstanding 86,358 47,531 38,827 53,002 2,060 27,800 3,496 Dividends declared but not yet payable 37,902 23,459 14,443 17,338 980 11,594 7,990 Income collected but not yet earned 76,373 52,594 23,779 10,908 2,534 39,662 23,269 Expenses accrued and unpaid 98,807 62,497 36,310 26,062 10,217 42,820 19,708 Other liabilities 64,430 30,205 34,225 25,882 1,955 27,235 9,358 Total liabilities 62,234,492 39,792,548 22,441,944 18,213,967 4,074,850 22,462,253 17,483,422 CAPITAL ACCOUNTS Capital (see table 14) 2,362,185 1,511,994 850,191 548,091 101,600 789,581 922,913 Surplus 2,394,336 1,386,051 1,008,285 840,674 120,590 763,842 669,230 Undivided profits 775,145 498,624 276,521 212,908 29,089 259,901 273,247 Reserves for contingencies 312,467 210,177 102,290 43,594 36,658 139,338 92,877 Other capital accounts 42,231 33,633 8,598 3,195 237 14,652 24,147 Total capital accounts 5,886,364 3,640,479 2,245,885 1,648,462 288,174 1,967,314 1,982,414 Total liabilities and capital accounts 68,120,856 43,433,027 24,687,829 19,862,429 4,363,024 24,429,567 19,465,836 Net demand deposits subject to reserve 39,707,549 24,325,282 15,382,267 15,689,091 3,083,912 13,405,669 7,528,877 Demand deposits-adjusted3 33,753,582 21,202,014 12,551,568 10,760,677 2,214,686 11,117,275 9,660,944 6,619 5,117 1,502 36 13 351 6,219 Number of banks 1 Banks are classed according to the reserves which they are required to carry (see table 11). Some banks classed as ''country banks" are in outlying sections of reserve cities^ or central reserve cities, and some banks classed as "reserve city banks" are in outlying sections of central reserve cities. Figures for each class of banks include assets and liabilities of their domestic branches, whether located within or outside the cities in which the parent banks are located. 2 United States Treasurer's time deposits, open accounts, are combined with postal savings (time) deposits. 3 Demand deposits other than interbank and United States Government, less cash items reported as in process of collection Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NO. 14.-ALL MEMBER BANKS-CLASSIFICATION OF LOANS, INVESTMENTS, REAL ESTATE, AND CAPITAL ON DECEMBER 31, 1941 BY CLASSES OF BANKS [In thousands of dollars] m b e a A m n l k b l s e r n m b a e t a A i m n o l k l b n s e a r l A m b l e l a m n S b k ta s e r te New C e m Y nt e o r m r a k l b r e e r se b r a v n C e k h s c i 1 c i t a y g o m R b e e a c s m n i e t k y b r s v e 1 r e C m b o e a u m n n k b t s e r 1 y r Loans—Total 18,020,904 11,725,496 6,295,408 4,072,172 954,288 7,104,682 5,889,762 Commercial and industrial loans 8,063,757 5,176,981 2,886,776 2,715,736 711,190 3,205,791 1,431,040 > Agricultural loans _ 972,321 818,172 154,149 8,096 5,515 299,921 658,789 Commercial paper bought in open market 477,939 319,189 158,750 16,195 16,330 205,811 239,603 Bills, acceptances, etc. payable in foreign countries 6,930 5,964 966 38 1,652 4,071 1,169 Acceptances of other banks, payable in United States.. 44,888 21,016 23,872 38,802 94 3,652 2,340 > Reporting banks' own acceptances 77,600 48,970 28,630 36,203 2,699 36,923 1,775 Loans to brokers and dealers in securities 594,193 253,949 340,244 411,944 48,120 114,416 19,713 Other loans for purchasing or carrying securities 597,684 336,202 261,482 168,594 51,930 194,330 182,830 w Real estate loans: On farm land 294,962 222,466 72,496 30 323 79,824 214,785 On residential property 2,396,116 1,542,503 853,613 62,482 12,701 1,086,631 1,234,302 o On other properties 802,831 479,517 323,314 60,034 8,478 360,842 373,477 Loans to banks 39,023 14,641 24,382 31,955 585 4,215 2,268 All other loans 3,642,364 2,478,136 1,164,228 520,041 92,523 1,504,760 1,525,040 Overdrafts 10,296 7,790 2,506 2,022 2,148 3,495 2,631 United States Government direct obligations—Total. 15,706,687 9,755,221 5,951,466 5,585,248 1,311,338 5,293,564 3,516,537 o Treasury bills 970,898 675,265 295,633 310,707 255,855 294,668 109,668 > Treasury notes... 3,007,041 1,886,439 1,120,602 1,622,670 152,709 750,603 481,059 Bonds maturing in 5 years or less 1,452,292 736,185 716,107 804,147 60,563 359,255 228,327 o Bonds maturing in 5 to 10 years 3,653,798 1,966,265 1,687,533 1,434,799 118,908 1,277,833 822,258 Bonds maturing in 10 to 20 years 5,456,368 3,690,358 1,766,010 1,258,371 540,742 2,233,981 1,423,274 o Bonds maturing after 20 years 1,166,290 800,709 365,581 154,554 182,561 377,224 451,951 Obligations guaranteed by United States Government—Total. 3,832,035 2,283,760 1,548,275 1,679,444 118,811 1,172,961 860,819 Q O Total amount maturing in 5 years or less 2,602,315 1,384,251 1,218,064 1,202,241 114,827 744,557 540,690 < Reconstruction Finance Corporation 1,338,847 612,017 726,830 703,002 84,219 330,286 221,340 Home Owners' Loan Corporation 1,427,822 1,034,358 393,464 574,309 5,857 493,585 354,071 m Federal Farm Mortgage Corporation 499,986 294,890 205,096 196,421 1,008 166,713 135,844 Other Government corporations and agencies 565,380 342,495 222,885 205,712 27,727 182,377 149,564 o Obligations of Government corporations and agencies, not guaran teed by United States—Total 557,231 331,566 225,665 217,157 51,340 175,943 112,791 Total amount maturing in 5 years or less 432,332 233,670 198,662 183,708 36,171 142,196 70,257 Federal Land Banks 167,471 110,840 56,631 56,865 16,349 42,318 51,939 Federal Intermediate Credit Banks 199,042 111,066 87,976 96,118 18,146 69,031 15,747 Other Government corporations and agencies 190,718 109,660 81,058 64,174 16,845 1 64,594 45,105 Obligations of States and political subdivisions—Total. 3,089,606 2,020,413 1,069,193 728,696 182,344 956,473 1,222,093 In default 2,872 2,457 415 303 728 1,841 Without specific maturity 190,054 148,994 41,060 8,221 66,264 55,304 60,265 Maturing in 5 years or less 1,827,730 1,059,891 767,839 579,275 78,654 514,189 655,612 Maturing after 5 years 1,068,950 809,071 259,879 140,897 37,426 386,252 504,375 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1 Other bonds, notes, and debentures—Total 1,921,852 1,252,670 669,182 471,271 117,941 504,057 1 828,583 Total amount in default 38,660 22,789 15,871 9,737 854 14,073 13,996 Total amount maturing in 5 years or less 625,572 339,636 285,936 238,571 60,499 169,277 157,225 Railroads 698,640 458,285 240,355 162,661 33,159 193,436 309,384 Public utilities 421,102 279,102 142,000 57,853 30,393 102,166 230,690 Industrials 527,938 352,529 175,409 159,679 41,202 132,228 194,829 Other domestic corporations 137,312 73,415 63,897 62,402 5,107 35,088 34,715 Foreign public and private 136,860 89,339 47,521 28,676 8,080 41,139 58,965 Corporate stocks—Total 392,244 201,728 190,516 141,625 23,928 139,748 86,943 Federal Reserve Banks 142,117 86,562 55,555 41,303 6,660 46,531 47,623 w Affiliates of reporting banks 98,174 45,928 52,246 40,801 276 51,767 5,330 a Other domestic banks 15,329 4,643 10,686 1,869 9 6,253 7,198 w Other domestic corporations 135,583 64,153 71,430 57,036 16,983 34,969 26,595 > Foreign corporations 1,041 442 599 616 228 197 Bank premises, furniture and fixtures, and other real estate—Total 1,090,352 670,567 419,785 221,047 20,567 392,711 456,027 Bank premises 839,503 534,309 305,194 199,198 18,819 295,504 325,982 W F F u ar r m ni t l u a r n e d a ( n i d n c f l i u x d tu in re g s improvements) 7 12 1 , , 6 7 4 1 9 0 5 9 4 , , 6 5 2 66 4 1 3 7 , , 0 1 2 4 5 4 72 6 2 1 4 9 9 4 2 4 9 , , 5 1 6 6 9 4 41 8, , 0 6 2 3 5 0 w Residential properties 63,736 25,373 38,363 7,486 739 19,131 36,380 < Other real properties 102,754 46,695 56,059 13,635 766 44,343 44,010 Assets indirectly representing bank premises or other real estate- Total 98,449 54,036 44,413 10,169 718 65,648 21,914 Investments 72,816 47,413 25,403 8,428 613 46,966 16,809 Other assets 25,633 6,623 19,010 1,741 105 18,682 5,105 Capital: Par or face value—Total 2,364,456 1,513,564 850,892 548,091 101,600 789,581 925,184 Capital notes and debentures 38,512 38,512 261 22,584 15,667 First preferred stock 220,587 155,429 65,158 9,011 1,600 86,631 123,345 Second preferred stock 17 716 12,983 4,733 2,150 15,566 Common stock 2,087,641 1,345,152 742,489 538,819 100,000 678,216 770,606 Retirable value of: First preferred stock 312,077 202,790 109,287 22,350 1,600 119,943 168,184 Second preferred stock 23,591 14,931 8,660 2,150 21,441 1 For footnote see preceding table. 4^ ^4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 8 ANNUAL REPORT OF BOARD OF GOVERNORS NO. 15.-MEMBER BANK RESERVE BALANCES, RESERVE BANK CREDIT, AND RELAT ED ITEMS—END OF YEAR 1918-1940 AND END OF MONTH 1941 [In millions of dollars] Reserv End of year or month 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941—Jan.. Feb.. Mar. Apr.. May. June July Aug. Sept. Oct.. Nov. Dec. cetnuocsid slli re Bank credit outstanding ffl 1,766 2,215 2,687 1,144 618 723 320 643 637 582 1,056 632 251 638 235 98 7 5 3 10 4 7 3 2 3 3 2 4 2 5 11 11 6 6 3 thguob slli m 287 574 260 145 272 355 . 387 374 381 392 489 392 364 339 33 133 6 5 3 1 1 tnemnrevoG .S . seitiruces P 239 300 287 234 436 134 540 375 315 617 228 511 729 817 1,855 2,437 2,430 2,431 2,430 2,564 2,564 2,484 2,184 2,184 2,184 2,184 , 2,184 I 2,184 2,184 2,184 2,184 2,184 2,184 2,184 2,254 evreseR reht 1tiderc knaB O 206 203 120 J 40 79 27 54 67 49 64 1 35 48 29 59 22 20 20 45 64 38 33 102 87 64 78 56 48 92 81 104 1 80 69 119 122 104 lato o H O 2,498 2,873 3,292 2,707 3,355 2,639 1,563 3,373 1,405 3,642 1,238 3,957 1,302 4,212 1,459 4,112 1,381 4,205 1,655 4,092 1,809 3,854 1,583 3,997 1,373 4,306 1,853 4,173 2,145 [ 4,226 2,688 4,036 2,463 8,238 2,486 10,125 2,500 11,258 2,612 12,760 2,601 14,512 2,593 17,644 2,274 21,995 2,250 22,116 2,265 22,232 2 243 22,367 2,234 122,506 2,280 22,575 2,267 22,624 2,293 122,675 2,275 22,719 2,264 22,761 2,309 22,800 1 2,3122 2,785 1 2,3612 2,737 tuo ycnerruc yrusaer 3gnidnats H 1,795 1,707 1,709 1,842 1,958 2,009 2,025 1,977 1,991 2,006 2,012 2,022 2,027 2,035 1 2,204 2,303 2,511 2,476 2,532 2,637 2,798 2,963 3,087 3 097 3,102 3,109 3,122 3,134 3,149 3,166 3,181 3,198 3,219 3,231 3,247 noitalucric ni yeno! £ 4,951 5,091 5,325 4,403 4,530 4,757 4,760 4,817 4,808 4,716 4,686 4,578 4,603 5,360 5,388 5,519 5,536 5,882 6,543 6,550 6,856 7,598 8,732 8,593 8,781 8,924 l 9,071 9,357 9,612 [ 9,732 9,995 10,163 10,364 10,640 11,160 4sgnidloh hsac yrusaer H 288 385 218 214 225 213 211 203 201 208 202 216 211 222 272 284 3,029 2,566 2,376 3,619 2,706 2,409 2,213 2,193 2,187 2,236 i 2,283 2,215 2,275 2,334 2,376 2,281 2,207 2,188 2,215 htiw stisoped yrusaer sknaB evreseR laredeF H 51 31 57 96 11 38 51 16 17 18 23 29 19 54 8 3 121 544 244 142 923 634 368 688 343 1,180 865 443 980 877 906 423 987 429 867 5stisoped rebmemno & 121 101 23 27 29 23 39 29 65 26 27 30 28 110 43 132 189 255 259 407 441 653 1,732 1,777 1,805 1,721 1,830 1,965 1,831 1,752 1,821 1,838 1,899 1,644 1,360 evreseR laredeF reht 6stnuocca Member bank reserve balances *« cJ £ O H O W X 118 11 ,636 51 208 1,890 68 298 1,781 285 1,753 99 276 1,934 275 1,898 14 258 2,220 59 272 2,212 -44 293 2,194 -56 301 2,487 63 348 2,389 -41 393 2,355 -73 375 2,471 96 354 1,961 -33 355 2,509 576 360 2,729 859 241 4,096 1,814 253 5,587 2,844 261 6,606 1,984 263 7,027 1,212 260 8,724 3,205 251 11,653 5,209 284 14,026 6,615 282 13,930 6,380 281 14,203 6,534 288 13,371 5,776 288 '1 3,524 5,771 285 13,724 5,801 290 13,051 5,210 287 13,151 5,215 284 12,794 4,796 292 13,227 5,169 291 12,580 4,557 288 13,140 3,828 291 12,450 3,085 1 Includes Government overdrafts in 1918, 1919 and 1920; includes industrial advances outstanding since July 1934. 2 By proclamation of the President, dated January 31, 1934, the weight of the gold dollar was reduced from 25 8/10 grains to 15 5/21 grains, nine-tenths fine. Between January 31, 1934, and February 1, 1934, the gold stock increased $2,985,000,000, of which $2,806,000,000 was the increment resulting from the reduction in the weight of the gold dollar and the remainder was gold which had been purchased by the Treasury previously but not added to the gold stock. The increment was covered into the Treasury as a miscellaneous receipt, and appeared together with the new gold as a General Fund asset. These transactions were also reflected in an in crease in the item "Treasury cash." The increment arising from United States gold coin turned in by the public after January 31, 1934, was also added to both gold stock and Treasury cash at the time of receipt. The incre ment from this source amounted to about $7,000,000, from February 1 to December 31, 1934, to about $1,000,000 in 1935, to $1,800,000 in 1936, to $1,200,000 in 1937, to $500,000 in 1938, to $350,000 in 1939, to $450,000 in 1940 and to $205,000 in 1941. 3 Comprises outstanding United States notes, national bank notes, silver bullion, Treasury notes of 1890, standard silver dollars, subsidiary silver and minor coin, and the Federal Reserve Bank notes for the retirement of which lawful money has been deposited with the Treasurer of the United States, including the currency of these kinds that is held in the Treasury and the Federal Reserve Banks as well as that in circulation. 4 Cash (including gold bullion) held in the Treasury excepting (a) gold and silver held against gold and silver certificates and (b) amounts held for the Federal Reserve Banks. 5 Item includes all deposits in Federal Reserve Banks except Government deposits and member bank reserve balances. 6 This item is derived from the condition statement of the Federal Reserve Banks by adding capital, surplus, other capital accounts, and "other liabilities, including accrued dividends," and subtracting the sum of bank premises and "other assets." 1 Represents excess of total reserve balances over reserves required to be held by member banks against their deposits. Figures not available prior to 1929 except on call dates, and since April 1933 are for licensed member banks only. For required reserves and changes in the percentages of requirements see table 11. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 49 NO. 16.-NUMBER OF BANKS AND BRANCHES IN UNITED STATES, 1933-1941 Member banks Nonmember banks Branches Other than End of year figures mutual savings Total In Outside National State and private banks M sa u v t in u g al s Private2 h of e f a ic d e - h of e f a ic d e - Insured1 in N su o r n e - d1 cities cities Number of banking offices 1933 6,275 1,817 9, 041 704 103 17,940 1934 6,705 1,961 39,579 705 246 19,196 1935 6,715 1,953 8,556 | 1,088 698 143 19,153 1936 6,723 2,032 8,436 1,043 693 139 19,066 1937 6,745 2,075 8,340 997 691 79 18,927 1938 6,723 | 2,106 8,224 958 690 73 18,774 1939 6, 705 2,177 8,098 931 683 69 18,663 1940 6,683 2,344 1 7,891 895 686 62 18,561 1941 6,682 2,517 7,741 846 4680 558 18,524 Number of banks (Head offices) 1933 5,154 857 8,341 579 98 15,029 1934 5,462 980 7,693 1.108 579 241 16,063 1935 5,386 1,001 7,728 1,046 570 138 15,869 1936 5,325 1,051 7,588 1,004 565 134 15,667 1937 5,260 1,081 7,449 960 563 74 15,387 1938 5,224 1,114 7,316 917 555 68 15,194 1939 5,187 1,175 7,171 887 551 63 15,034 1940 5,144 1,342 6,951 851 551 56 14,895 1941 5,117 61,502 6,809 800 545 52 1 14,825 Number of branches 1933 1,121 960 70 0 125 5 2,911 1,784 1,127 1934 1,243 981 778 126 5 3,133 1,776 1,357 1935 1,329 " 952 828 42 128 5 3,284 1,754 1,530 1936 1,398 981 848 39 128 5 3,399 1,749 1,650 1937 1,485 994 891 37 128 5 3,540 1,757 1,783 1938 1,499 992 908 41 135 5 3,580 1,743 1,837 1939 1,518 1,002 927 44 i 132 6 3,629 1,738 1,891 1940 1,539 1,002 940 1 44 135 6 3,666 1,716 1,950 1941 j 1,565 1,015 932 46 135 6 3,699 1,726 1,973 1 Federal deposit insurance did not become operative until January 1, 1934. 2 The figures for December 1934 include 140 private banks which reported to the Comptroller of the Currency under the provisions of Section 21(a) of the Banking Act of 1933. Under the provisions of the Banking Act of 1935, private banks no longer report to the Comptroller of the Currency and, accordingly, only such private banks as report to State banking departments are in the figures shown for subsequent years. 3 Separate figures not available for branches of insured and noninsured banks. 4 Comprises 49 insured banks with 32 branches and 496 noninsured banks with 103 branches. The figures beginning with 1939 exclude one bank with 4 branches which theretofore was classified as an insured mutual savings bank but is now included with "Nonmember banks other than mutual savings and private banks." 5 Comprises 1 insured bank with no branches and 51 noninsured banks with 6 branches. 6 Includes 3 mutual savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

5° ANNUAL REPORT OF BOARD OF GOVERNORS NO. 17.-ANALYSIS OF CHANGES IN NUMBER OF BANKS AND BRANCHES DURING 1941 Member banks Nonmember banks Other than mutual savings Total and private Na State banks Mutual Private tional savings Non- Insured insured ANALYSIS OF BANK CHANGES Number of banks on December 31, 1940 14,895 5,144 1,342 6,951 851 551 56 Increases in number of banks: Primary organizations (new banks) +53 +7 +1 +32 +13 Decreases in number of banks: -8 -4 -3 -1 Voluntary liquidations2 -42 -6 -2 -16 -16 -2 -63 -22 -1 -29 -7 -3 — 1 Unclassified -10 -2 -8 Inter-class bank changes: Conversions- National into State -8 +2 +6 State into national +6 -4 -2 Private into State +1 -1 Federal Reserve membership—3 Admissions of State banks +169 -162 -4 -3 Withdrawals of State banks -5 +5 Federal deposit insurance—4 Admissions of State banks +29 -29 Withdrawals of State banks -1 +1 Net increase or decrease in number of -70 -27 +160 -142 -51 -6 —4 Number of banks on December 31, 1941 14,825 5,117 51,502 6,809 800 545 52 ANALYSIS OF BRANCH CHANGES Number of branches on December 31, 1940. .. 3,666 1,539 1,002 940 44 135 6 Increases in number of branches: De novo branches +51 + 15 +7 +23 +6 Banks converted into branches +19 +3 +6 +9 +1 Decreases in number of branches: Voluntary liquidation of parent bank . .. -1 -1 Otherwise discontinued -36 -9 -8 -16 -2 -1 Interclass branch changes: From national to State -2 +2 From State to national +20 -20 From nonmember to State member +28 -28 From uninsured to insured nonmember.. +2 -2 Net increase or decrease in number of branches -\-33 +26 +13 -8 +2 Number of branches on December 31, 1941. . 3,699 | 1,565 1,015 932 46 135 6 1 Exclusive of new banks organized to succeed operating banks. 2 Exclusive of liquidations incident to the succession, conversion, and absorption of banks. Exclusive of conversions of national banks into State bank members, or vice versa, as such conversions do not affect Federal Reserve membership. Exclusive of conversions of member banks into insured nonmember banks, or vice versa, as such conver sions do not affect Federal Deposit Insurance Corporation membership. 5 Includes 3 mutual savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 51 NO. 18.—NUMBER OF BANKS ON PAR LIST AND NOT ON PAR LIST,1 BY FEDERAL RESERVE DISTRICTS AND STATES, ON DECEMBER 31, 1940 AND 1941 Nonmember banks, other than Federal Reserve Member banks mutual savings banks district or State On par list 1 Not on par list Dec. 31, Dec. 31, Dec. 31, 1 Dec. 31, Dec. 31, Dec. 31, DISTRICT 1941 1940 1941 1940 1941 1940 Boston 347 350 162 165 797 765 195 243 659 651 224 236 Cleveland 673 658 538 558 2 2 Richmond 447 431 275 289 289 289 Atlanta 317 316 82 82 704 695 899 856 1,338 1,392 220 221 St. Louis 437 415 621 661 443 443 Minneapolis 452 460 115 120 716 706 Kansas City 741 739 905 919 176 176 Dallas 573 568 241 246 152 154 San Francisco 277 277 228 235 29 29 Total 6,619 6,486 4,924 5,146 2,731 2,715 STATE New England: 40 42 26 27 53 53 12 12 40 41 32 32 153 154 41 42 14 14 9 9 60 58 57 59 Middle Atlantic: 580 557 133 170 291 280 61 74 778 773 288 298 East North Central: Ohio 379 363 312 330 Indiana 201 184 296 315 3 3 Illinois 434 419 364 394 32 28 Michigan 224 220 230 237 1 1 Wisconsin 145 137 260 272 161 160 West North Central: Minnesota 207 209 48 50 420 415 Iowa 154 148 390 397 114 113 Missouri 160 150 344 363 107 106 North Dakota 45 45 4 5 112 113 South Dakota 60 63 6 6 96 95 Nebraska 147 147 107 108 164 162 209 206 447 457 1 South Atlantic- 18 19 23 23 74 73 100 101 District of Columbia 17 15 5 7 Virginia 184 176 91 99 39 39 West Virginia 101 98 74 76 6 6 North Carolina 55 54 17 18 125 125 South Carolina 27 26 4 4 119 119 Georgia 69 69 19 17 261 256 Florida 58 57 15 15 89 88 East South Central: Kentucky 113 112 275 280 10 10 Tennessee 77 77 47 51 173 169 Alabama 82 82 4 4 132 131 Mississippi 26 26 6 4 175 177 West South Central: Arkansas 59 57 44 46 127 133 Louisiana 37 37 4 4 105 104 Oklahoma 218 219 160 159 12 12 Texas 530 525 227 232 96 98 Mountain: Montana 66 67 24 24 22 20 28 27 22 23 35 35 22 22 1 1 93 93 51 52 1 27 27 15 14 7 7 5 5 Utah 34 33 26 27 8 8 4 3 Pacific: Washington 57 57 51 51 26 26 Oregon 32 32 1 36 36 3 3 113 115 86 92 1 Includes all member banks, and all nonmember banks on which checks are drawn (except mutual savings banks, on a few of which some checks are drawn). Banks "not on par list" comprise non-member banks which have not agreed to pay without deduction such checks drawn upon them as may be forwarded for payment through the Federal Reserve Banks. Chec ks on such banks are not collectible through the Federal Reserve Banks. The difference of 6 between the number of nonmember banks on December 31, 1941 shown in this table and in table Digitized fo1r6 F isR dAuSe EtoR th e fact that this table excludes 142 banks (principally 64 industrial banks and 59 non-deposit trust companies) on which no checks are drawn, and includes 136 banks (principally 117 private banks and 15 coopera http://frasert.isvetl ohunniskfOe do.no wrgh/i ch checks are drawn hut which (\) are not rennrtinc to State hankinc denartmenfc;. (?.) arp in Federal Reserve Bank of St. Louis

ANNUAL REPORT OF BOARD OF GOVERNORS NO. 19.-MONEY RATES, BOND YIELDS, AND STOCK PRICES 1 Op N en ew -m Y ar o k r e k t C ra i t t e y s 2 in (per B c o e n n d t p Y er i el a d n s n 3 um) Com (1 m 93 o 5 n -3 s 9 to = ck 1 p 0 r 0 i ) c es4 (per cent per annum) Year and Month m m p P c a e o 4 r o r p i n - m c m 6 e t i h r e a , s l T b U u r i e . r l y l S a s . s 5 U ex T . e a S m x . - n p T o t t r e e s T a a b a s l u x e r 6 y T U r u e . ry a S s . A C a o a rpora B t a e a Total I t n r d ia u l s R ro a a i d l P u u ti b l l i i t c y 1-6 1-2 2-6 30 30 402 354 20 28 1919 r5.37 4.73 5.49 7.25 74.6 65.6 186.5 70.5 1920 r7.50 5.32 6.12 8.20 67.8 59.8 169.6 63.6 1921 . .. . r6.61 5.09 5.97 8.35 58.3 46.7 163.8 67.5 1922 r4.52 4.30 5.10 7.08 71.5 58.4 192.7 82.8 1923 r5.07 4.36 5.12 7.24 72.9 60.1 190.6 86.2 1924 r3.96 4.06 5.00 6.83 76.9 62.9 203.5 92.1 1925 r4.04 3.86 4.88 6.27 94.8 79.9 237.5 110.9 1926 4.34 3.68 4.73 5.87 105.6 90.3 265.1 116.9 1927 4.11 3.34 4.57 5.48 124.9 107.0 315.8 135.5 1928 4.86 3.33 4.55 5.48 158.3 139.4 340.9 173.9 1929 5.85 3.60 4.73 5.90 200.9 171.1 390.7 274.1 1930 . . 3.59 3.29 4.55 5.90 158.2 127.0 331.3 250.7 1931 2.63 1.402 3.34 4.58 7.62 99.5 78.5 191.3 172.8 1932 2.73 0.879 3.68 5.01 9.30 51.2 41.8 69.5 92.1 1933 1.72 0.515 2.66 3.31 4.49 7.76 67.0 59.9 100.8 91.4 1934 1.02 0.256 2.12 3.12 4.00 6.32 76.6 73.4 110.1 80.5 1935 .76 0.137 1.29 2.79 3.60 5.75 82.9 82.2 90.2 83.9 1936 .75 0.143 1.11 2.65 3.24 4.77 117.5 115.2 136.5 122.1 1937 .95 0.447 1.40 2.68 3.26 5.03 117.5 118.1 129.8 110.4 1938 .81 0.053 0.83 2.56 3.19 5.80 88.2 90.1 69.5 85.6 1939 .59 0.023 0.59 2.36 3.01 4.96 94.2 94.8 74.7 98.6 1940 .56 0.014 0.50 2.21 2.84 4.75 88.1 87.9 71.1 95.8 1941 .54 0.103 0.46 0.76 1.95 2.77 4.33 80.0 80.4 70.6 81.0 1940 January .56 (7) 0.47 2.30 2.88 4.86 97.4 97.7 77.7 103.0 M Fe a b r r c u h ary . . 5 5 6 6 0.0 (7 0 ) 4 0 0 . . 4 4 2 6 2 2 . . 3 2 2 5 2 2. . 8 8 4 6 4 4. . 8 8 0 3 9 9 6 6 . . 8 7 9 9 7 7 . . 1 3 7 7 6 6 . . 7 5 1 1 0 0 1 2 . . 6 4 April .56 0.003 0.45 2.25 2.82 4.74 98.1 98.7 77.3 102.6 May .56 0.042 0.65 2.38 2.93 4.94 85.1 85.2 65.4 92.3 June .56 0.071 0.76 2.39 2.96 5.11 78.1 77.3 60.8 88.5 July .56 0.009 0.57 2.28 2.88 4.80 80.8 79.3 65.2 93.9 August .56 0.019 0.58 2.25 2.85 4.76 81.6 80.3 66.0 93.5 O Se c p to te b m er b er . . 5 5 6 6 0. ( 0 7 2 ) 1 0 0 . . 4 4 8 3 2 2 . .1 1 0 8 2 2 . . 8 7 2 9 4 4 . . 6 5 6 6 8 8 5 6 . . 5 0 8 8 4 5 . . 6 4 7 7 2 1 . . 6 6 9 9 4 3 . . 7 7 .56 0.003 0.34 1.97 2.75 4.48 86.7 86.6 73.6 92.3 December .56 (7) 0.35 1.89 2.71 4.45 84.9 84.9 70.0 90.6 1941 January .56 (7) 0.43 0.76 1.99 2.75 4.38 85.0 84.7 73.4 91.1 February .56 0.034 0.55 0.81 2.10 2.78 4.42 80.1 79.4 70.0 87.1 March .56 0.089 0.50 0.84 2.01 2.80 4.38 80.3 79.6 70.6 87.1 April .56 0.092 0.52 0.81 1.96 2.82 4.33 77.9 77.3 71.2 83.1 May .56 0.082 0.44 0.72 1.92 2.81 4.32 77.1 77.3 70.7 78.9 June .56 0.089 0.38 0.68 1.91 2.77 4.31 79.5 79.7 70.9 81.6 July .50 0.097 0.37 0.67 1.90 2.74 4.28 83.2 84.2 73.8 81.8 August .50 0.108 0.33 0.62 1.94 2.74 4.27 83.2 84.3 74.4 81.0 September .50 0.055 0.34 0.62 1.94 2.75 4.30 83.6 84.8 72.6 81.3 October .50 0.049 0.41 0.72 1.88 2.73 4.28 80.4 81.6 70.3 78.5 November .50 0.242 0.57 0.90 1.85 2.72 4.28 77.4 78.6 68.4 74.5 December .56 0.298 0.64 1.02 1.97 2.80 4.38 71.8 73.8 61.0 66.2 1 Annual data are averages of monthly figures. r Revised. 2 For commercial paper, monthly data are prevailing rates; for Treasury bills, the average rates on new issues within period; and for Treasury notes the averages of daily figures for 3- to 5-year issues. Treasury bill series comprises 90-day bills to February 16, 1934; 182-day bills from February 23, 1934 to February 23, 1935; 273-day bills from March 1, 1935 to October 15, 1937; bills maturing about March 16, 1938, from October 22 to December 10, 1937; and 91-day bills thereafter, with the exception of those issued December 24 and 31, 1941, which were 82 and 76-day bills, respectively. 3 Monthly data are averages of daily figures. U. S. Treasury bond yields are averages of all outstanding partially tax-exempt bonds due or callable in more than eight years from 1919 to 1925 and in more than twelve years beginning in 1926. Corporate average yields are as published by Moody's Investors Service; until 1928 each rating group included 15 bonds; since the early part of 1934 there have been less than 30 bonds in the Aaa group owing to the limited number of suitable issues in the industrial and railroad groups. 4 Standard and Poor's Corporation. Monthly data are averages of Wednesday figures. 5 Tax-exempt bills prior to March 1941; taxable bills thereafter. 6 First issued in December 1940. 7 Negative rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 53 NO. 20. -BUSINESS INDEXES* [Adjusted for seasonal variation] In ( d p u 1 h s 9 y t 3 s r 5 i i - c a 3 l a 9 l p v = r o o l 1 d u 0 u m 0 c t e i ) o n Co t 1 r n 9 a s 2 c t 3 ( t r v s - u 2 a c 5 a l t u w i = e o a ) n 2 r 1 d 0 c e o 0 d n ( E n m m u p e m l n b o e t y r ) w <u 3 „> 3 2 g £ 43 C 3 I £ £ f3i d cd y,«» o SS fee H Q £ 72 84 62 71 63 44 106.7 75 93 60 83 63 30 107.1 58 53 57 66 56 44 82.0 73 81 67 71 79 68 90.7 88 103 72 98 84 81 103.8 82 95 69 89 94 95 94 96 90 107 76 92 122 124 120 99.8 96 114 79 100 129 121 135 101.7 95 107 83 100 129 117 139 99.5 99 117 85 99 135 126 142 99.7 110 132 93 107 117 87 142 107.1 106.0] 91 98 84 93 92 50 125 103.3 92.4] 75 67 79 80 63 37 84 91.6 78.1 58 41 70 67 28 13 40 82.2 66.3] 69 54 79 76 25 11 37 82.9 73.4] 75 65 81 80 32 12 48 90.1 85.7 87 83 90 86 37 21 50 93.8 91.3 103 108 100 99 55 37 70 99.8 99.0 113 122 106 112 59 41 74 105.01 108.6 89 , 78 95 97 64 45 80 98.6| 90.9 108 109 108 106 72 60 81 102 99.9 123 138 113 117 81 72 89 106.4' 107.5 156 193 135 125 122 89 149 115.6 127.7 122 134 113 118 75 105.6 107.6 116 124 110 114 63 104.9] 105.8 113 118 107 117 62 66 104.7 104.0| 112 116 107 119 64 66 104.01 102 116 123 110 117 64 65 104.5 102 122 133 114 119 74 77 105.0| 103.9 122 136 113 119 85 91 105.4 105.1 124 143 112 114 90 98 106.3 107.4 127 151 112 117 93 101 106.9J 108.9 130 155 117 113 95 103 108.1 111.4 134 157 120 118 111 130 109.7 114.2 139 164 124 118 115 136 111.5 116.6] 140 171 123 119 103 117 111. 118.3 144 176 126 118 99 118 112.5 118.6 147 180 128 125 94 109 112.3 119.4 144 180 131 95 103 121 112.5 122.0 154 190 135 126 101 111 114.0 124.9 159 195 139 132 117 101 129 115.4 128.7 160 199 138 131 139 115 158 117.1 133.3 160 199 139 132 152 112 184 117.7 133.3 161 203 137 131 161 105 206 117.5 132.3 163 207 139 130 145 87 192 118.0] 132.8] 166 209 1 144 131 138 74 189 119.2 134.4 167 1 m 141 13,0 123 69 167 120.0 134.9 )eul a > ^2n lory 01 = >>7 rotc 329 -zr X! rf fa 98.0 117.2 75.6 81.2 102.9 96.01 101.1 104.2 102.4 103.5 110.4 89.4 67.8 46.7 50.1 64.5 74.1 85.8 102.5 78.5 92.2 105.4 148.8 99.8 99.3 99.8 97.9 97.8 99.5 98.2 105.5 111.6 116.2 116.4 122.4 120.7 126.8 131.2 134.7 144.1 152.2 152.7 158.1 162.6 mun * IV u a Jo >» bfl $m I|I| T3 a x)o ON s £ p j " © " * . N B OO £ *z°^ •i rr> - S E " 3 ? ^ II bDrn a d > a Oa> fa Q £ 120 78 138. t 129 94 154.4 110 87 97.c 121 88 96.7 142 98 100. t 139 99 98.: 146 103 103.5 152 106 100. C 147 107 95.4 148 108 96.7 152 111 95.: 131 102 86.4 105 92 73.C 78 69 64. J 82 67 65.5 89 75 74. S 92 79 80. C 107 88 80.£ 111 92 86. ? 89 85 78.£ 101 90 77.: 109 94 78. t 130 110 87.: 111 92 79/ 105 90 78/ 100 89 78/ 103 89 78.* 106 89 78.^ 111 91 77.. 110 92 77/ 112 98 77.' 112 97 78.C 110 94 78/ 116 100 79.( 119 101 80.( 122 101 80. i 124 103 80.( 126 103 81.. 112 104 83/ 135 1C5 84/ 139 104 87. 138 115 88/ 139 134 90.. 130 116 91. 167.0 127 105 92. 165.4 135 116 92. 170.2 137 111 93. * Without seasonal adjustment. 1 Indexes compiled by the Board of Governors of the Federal Reserve System, except for indexes of wholesale commodity prices and factory pay rolls, compiled by the United States Bureau of Labor Statistics, and the index of income payments, compiled by the United States Department of Commerce. Descriptions and back figures for the Board's indexes may be obtained from the Division of Research and Statistics. 2 Three-month moving average, centered at second month, based on F. W. Dodge Corporation data for 37 Eastern States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

RECORD OF POLICY ACTIONS MEETING ON JANUARY 16, 1941 Members present: Mr. Eccles, Chairman; Mr. Ransom, Vice Chairman; Mr. Szymczak, Mr. McKee, Mr. Davis, Mr. Draper. Amendment to Regulation U. Loans by Banks for the Purpose of Pur chasing or Carrying Stocks Registered on a National Securities Exchange. By unanimous vote, Regulation U, Loans by Banks for the Purpose of Purchasing or Carrying Stocks Registered on a National Securities Exchange, was amended in certain respects, effective February 17, 1941. It was stated, however, that any bank, at its option, could conduct its operations in accordance with the amendment at any time prior to that date. In connection with this action, the Board issued a statement to the press under date of January 17, 1941, in which the reasons for the amendment are set forth as follows: 4 'The Board of Governors of the Federal Reserve System has adopted the attached amendment to Regulation U, Loans by Banks for the Purpose of Purchasing or Carrying Stocks Registered on a National Securities Exchange. "The amendment, which becomes effective February 17, 1941, is essentially technical. Its principal purpose is to reconcile provisions of Regulation U with rules recently issued by the Securities and Ex change Commission with respect to the hypothecation by brokers or dealers of securities carried by them for the account of customers (Rule X-8C-1 and Rule X-15G2.-1), which become effective on February 17, 1941. "These SEC rules, in order to safeguard the rights of customers in their securities, provide among other things that when a broker or dealer borrows on any customers' securities he must not commingle them with his own under the same pledge. The amendment to Regulation U takes account of this requirement by providing, in effect, that any indebtedness of a broker or dealer that is secured by customers' securities shall be treated separately from any of his other indebtedness. There are provisions, however, both in the SEC rules and in Regulation U, which permit an agreement between the borrower and the lender by which securities belonging to the broker or dealer himself may be used as supplementary collateral for a loan secured by securities of his customers. "In addition to making changes necessitated by the SEC rules, the amendment to Regulation U provides for a simple mechanism by which collateral that is used to meet the requirements of Regulation U may be earmarked and distinguished from other collateral which, even though it secures a loan subject to the regulation, is not used for the purpose of meeting those requirements. This will simplify operations under the regulation, especially in cases involving loans to a broker and dealer in securities who has at the bank both a loan that is subject to the 56 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 57 Board's margin requirements and a loan that is not subject to these requirements. In connection with this mechanism, collateral which must be used to meet the Board's margin requirements for certain loans to brokers and dealers may be used for other purposes only to a limited extent. In particular, it may not be used to enable the borrower to obtain on the basis of the same collateral both a loan subject to the Board's margin requirements and a loan not subject thereto. This restriction, however, does not apply to the use of collateral for purposes of maintaining both loans, provided both loans have been properly made in the first place. "One effect of the amendment will be to enable banks which must revise any of their loan agreements with brokers or dealers as a con sequence of the SEC rules to do so with a minimum of inconvenience. "The amendment does not require any bank to reduce any loan, to obtain additional collateral for any loan, or to call any outstanding loan because of insufficient collateral." (Secretary's Note: At the meeting of the Board of Governors on February 13, 1941, at which Messrs. Eccles, Ransom, Szymczak, Davis and Draper were present, it was unanimously voted to postpone to February 2.4, 1941, the effective date of the amendment to Regulation U above referred to. The reason for the extension was that the Securities and Exchange Com mission, at the request of certain brokers and dealers in securi ties, had postponed until February 14, 1941, the effective date of its rules with respect to the hypothecation of customer securities.) MEETING ON AUGUST 2.1, 1941 Members present: Mr. Eccles, Chairman; Mr. Ransom, Vice Chairman; Mr. Szymczak, Mr. Draper. Adoption of Regulation W. Consumer Credit. By unanimous vote, Regulation W relating primarily to extensions of instalment credit for the purpose of purchasing certain designated types of consumers' durable goods was adopted to become effective on September 1, 1941, except that certain sections were made effective October 1, 1941, November 1, 1941, and January 1, 1942. The reasons for regulating consumer credit and for assigning this task to the Board of Governors of the Federal Reserve System are set forth in the Executive Order of the President of the United States under which the regula tion was issued. After the Executive Order became effective representa tives of the Board conferred with the consultative committee created by section i(c) of the Executive Order and with representatives of the Fede ral Reserve Banks and the trade, and the regulation was adopted after careful consideration of suggestions made by interested parties. The Board took the position that it was desirable that in the beginning the Regulation be in such form as to apply moderate restrictions in a manner consistent, where possible, with prevailing trade standards and thereby lay a basis for such subsequent changes in coverage and adjustment of terms as experience and economic developments might indicate to be necessary in order to carry out the purposes of the Executive Order, without imposing unnecessary burdens on consumers, dealers, or credit institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 ANNUAL REPORT OF BOARD OF GOVERNORS The following statement with respect to the reasons for the Regulation was released to the press by Chairman Eccles on August 15, 1941: "It is important that the public know why they are asked to accept and to cooperate in making effective the President's Executive Order calling for regulation of instalment credit. Employment and national income are rapidly rising to new high levels primarily because of the huge defense expenditures. This means that by and large people have more money to spend than ever before. This is happening at a time when more and more of our industrial plant must be used to pro duce defense materials. To the extent that plants can be expanded, or can work longer hours, or that shortages of strategic materials or of skilled help, can be overcome, we can produce both for defense and for civilian consumption. And the aim of all policy should be to increase production to the fullest possible extent. But we know that there are acute shortages of certain metals and other strategic materials. We know that beyond a point our plants cannot turn out more and more goods for the public and at the same time produce more and more for defense. The imperative demands of defense must have the right of way over civilian needs. "If there are no restraints upon the public's spending of increasing income for articles that cannot be produced in sufficient quantity to meet the increasing demand, the inevitable result is that the prices of these articles will be rapidly bid up. The consequence is what is com monly termed inflation. Inflation is as destructive as deflation. It shatters all of the adjustments of our economic machine. It hits hardest of all those of small means. It would not only vastly increase the costs of defense, but it would imperil our entire economy and make in creasingly difficult the adjustments of the post-war period. "The Government is striving in various ways to combat inflation. Taxation is a means not only of helping to pay for defense but of drawing off buying power that would otherwise inundate our markets. Simi larly, the Treasury has appealed to the public to invest in savings bonds and stamps, and in tax anticipation notes, to aid in meeting the costs of defense and to divert money from the marketplace until such time as we can turn again to peace time production. "These broad measures have to be backed up by others. Thus, in the case of acute shortages, the Government has had to fix prices, to invoke rationing and priorities. Beyond all this, however, it is evident that if we, in effect, draw off buying power with one hand and extend credit with the other, we have accomplished nothing in reducing the aggregate demand in the markets. If you pay $50 in taxes and invest $50 in savings bonds, and then turn around and borrow $100 to spend, you have not curtailed your purchases by a penny. "Accordingly, it is of primary importance that restraints be placed upon the wholesale extension of credit, including instalment buying. The volume of instalment credit has been expanding very rapidly, as it always does in times of rising national income. Yet when incomes are at high levels, that is the time when people should reduce their debts or get out of debt. Our people cannot spend their increased incomes and go into debt for more and more things today without precipitating a price inflation that would recoil ruinously upon all of us. Instead of an ever-expanding volume of consumer credit, we need to bring about a substantial reduction in the total outstanding. Civilian demand for goods must be adjusted as closely as possible to supplies available for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 59 consumption. Regulation of instalment credit is a necessary measure to this end. By deferring civilian demand at this time we can help avoid inflation, we can aid in defense, and we can store up a backlog of buying power that will help offset a post-defense slump. ' 'The impression held by some that regulation of instalment buying tends to restrict production or to curtail the business of dealers in merchandise is based on misunderstanding. It is because of defense needs, not because of regulation of instalment credit, that civilian supply is reduced in various lines, such as automobiles. The purpose of instalment credit regulation is to help dampen demand for goods the civilian supply of which has already been reduced and must be further reduced because of defense needs. In a word, the purpose is to dampen demand, not to diminish production. If production could keep pace with both civilian and defense demands, we would have no price infla tion troubles. We would need none of the measures of control and regu lation which are being invoked with the objective of protecting the public. "The regulation issued by the Board of Governors of the Federal Reserve System covers a list of consumers' durable goods. Demand for these goods tends to cause inflationary price rises as well as to absorb materials increasingly needed for defense. The regulation prescribes instalment terms that are by no means stringent or onerous. It does not prohibit buying on instalments, whether it be automobiles or ice boxes. It is a supplemental instrument to be used in conjunction with the broader, more basic fiscal and other governmental powers in com bating price inflation. It is not being used as an instrument of reform or alteration of the fundamentals of our economic system. In effect, it recognizes what in many lines are standard practices. The intent is not to disrupt but to protect the economy. "The public should be fully aware, however, that the regulation is subject to change from time to time as experience with its administra tion develops, and as economic conditions require a further dampening of buying power in order to safeguard the interests of consumers and the public generally." MEETING ON SEPTEMBER 19, 1941 Members present: Mr. Ransom, Vice Chairman; Mr. Szymczak, Mr. McKee, Mr. Draper. Amendment No. 1 to Regulation W. Consumer Credit. By unanimous vote, Part 3(a) of the Supplement to Regula tion W was amended, effective September 2.0, 1941, to provide that the basis for determining the maximum credit value of new automobiles would include (in addition to taxes and bona fide charges for delivery and accessories not otherwise included) the manufacturer's retail quotation at the factory or the equivalent of such quotation, and transportation charges from factory to point of delivery as suggested or recommended by the manu facturer for inclusion in the retail delivered price at that point, or in the absence of any such suggestion or recommenda tion then an amount substantially equal to the freight by rail from factory to that point. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6o ANNUAL REPORT OF BOARD OF GOVERNORS The regulation originally provided that the advertised delivered price of the automobile at the factory and transportation charges established by the manufacturer from factory to point of delivery should be used in determining the maximum credit value of an automobile. However, some of the manu facturers did not follow the practice of establishing transportation charges and when the 1942. model cars were placed on the market some manufacturers did not announce advertised delivered prices. The amendment was adopted to meet this situation. MEETING ON SEPTEMBER 2.3, 1941 Members present: Mr. Ransom, Vice Chairman; Mr. Szymczak, Mr. McKee, Mr. Draper. Increase in Required Reserves of Member Banks. By unanimous vote (Chairman Eccles was unable to be present at this meeting but had stated that he was in full accord with the proposed action), a revised supplement to Regulation D, Reserves of Member Banks, was adopted, effective as of November 1, 1941, to require that on and after that date each member bank shall maintain on deposit with the Federal Reserve Bank of its district reserve balances equal to 6 per cent of its time deposits, plus 14 per cent of its net demand deposits if the bank is not located in a reserve or central city, zo per cent of its net demand deposits if the bank is located in a reserve city, and x6 per cent of its net demand deposits if the bank is located in a central reserve city. The revised supplement also provided that for one month after the increase became effective on November 1, 1941, penalties for deficient reserves would be based upon requirements in effect prior to that date. By this action, which was taken after consultation with the Secretary of the Treasury, the Board increased required reserves of member banks to the limit of its statutory authority. At the time member banks had ap proximately $5,100,000,000 of excess reserves and it was estimated that the increase would reduce that excess to approximately $4,000,000,000 which would leave the banks as a whole with ample funds to meet all bank credit needs of the defense program and all legitimate requirements of their custom ers. A survey made by the Board a short time before showed that a large majority of the member banks would be able to meet the increased require ments out of existing excess reserves and all but a few of the remainder would be able to do so by drawing upon a portion of their deposits with corre spondents. The Board realized that the increase in requirements would not have a material effect in counteracting inflationary developments since the banks would still have a large volume of reserves available as a basis of expansion in meeting the growing demand for credit from the Government and private business. Prevention of inflation, the Board knew, would require the use by the Government of more effective powers including taxation, price regulation, priorities, and allocations. It was decided, however, that the action would be a desirable step toward the prevention of injurious credit expansion and would assist, to the limit of the Board's authority over member bank reserves, in carrying out the announced policy of the Govern ment to use its powers to combat inflation. In connection with the action taken by the Board, the Secretary of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 6l Treasury and the Chairman of the Board of Governors issued the following joint statement in which the Board concurred: ' 'The Treasury and the Board of Governors will continue to watch the economic situation and to cooperate with other agencies of the Government in their efforts, through priorities, allocations, price regulation, and otherwise, to fight inflation. Recommendations on the question of what additional powers, if any, over bank reserves the Board should have during the present emergency and what form these powers should take will be made whenever the Treasury and the Board, after further consultation, determine that such action is necessary to help in combating inflationary developments.,, MEETING ON OCTOBER 13, 1941 Members present: Mr. Eccles, Chairman; Mr. Szymczak, Mr. McKee, Mr. Draper. Amendment No. 2 to Regulation W. Consumer Credit. By unanimous vote the effective date of Sections 8(a), 8(b), 8(c), and 8(d) of Regulation W was postponed from November 1 to December 1, 1941, and the Regulation was amended in certain other respects, effective as of December 1, 1941. This amendment was adopted by the Board to close certain loopholes in Regulation W, thereby making it more effective in achieving its purpose, to simplify the provisions of the Regulation wherever possible so as not to impose unnecessary hardship on vendors and lenders in carrying out its requirements, and to remove certain possible causes of annoyance and criticism on the part of the public where it was felt that changes which would accomplish this end could be made without impairing the effective ness of the Regulation. When the Regulation was issued originally Sec tions 8(a), 8(b), 8(c), and 8(d) were made effective November 1, 1941, in order to provide an opportunity for further study of their possible effects. This effective date was postponed to December 1, 1941, in order that these sections might take effect in their amended form. The following statement with respect to the amendment was released to the press on October 2.5, 1941: "The Board of Governors of the Federal Reserve System has adopted, effective December 1, 1941, several amendments to Regulation W, dealing with instalment credit. The amendments are mainly of an administrative and technical nature. "The amendments include adoption of the so-called 'purpose test', requiring a borrower on an instalment loan, after January 1, 1942., to sign a statement as to the purpose of the loan; exempting business instalment loans from the Regulation, as well as loans to purchase or construct an entire building, and making the 18-month maximum ma turity apply to all instalment loans of $1,500 or less, instead of $1,000 or less, as previously provided. In addition, more liberal provisions have been adopted to facilitate repayment of instalment loans by farmers in accordance with the seasonal nature of their income. Also, in the case of so-called 'add-on', options are provided—either the additional credit may be treated separately, or the combined credit may be paid in 15 months, the monthly payments to be not less than they would have been without the add-on. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6x ANNUAL REPORT OF BOARD OF GOVERNORS "As amended, the Regulation closes the loophole whereby, although dealers in listed articles were required to obtain down payments, cash lenders were free to lend the full price unless the article was given as security for the loan. "Other provisions are as follows: "All instalment loans of $1,500 or less which are not for the purpose of purchasing a listed article are made subject to the 18-month maturity limit (except modernization loans, where the figure remains $1,000). "Down payments of $i or less will no longer be required; and the $5 minimum on monthly instalments (which was to become effective January 1, 1942.) is eliminated. "The extension of an instalment loan which is for the purpose of making a down payment on a listed article is prohibited. "All business loans are exempted from the Regulation unless they are for the purpose of purchasing listed articles. "The provision covering instalment credit for farmers permits any schedule of payments, if the down payment and maturity requirements of the Regulation are complied with, and if one-half of the balance is paid within the first half of the maximum maturity. "These amendments are effective December 1,1941, and the provisions of the Regulation which were to have become effective on November 1 are postponed to December 1. "Distribution of copies of the amendments will be made by Federal Reserve Banks and Branches." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS FEDERAL OPEN MARKET COMMITTEE MEETING ON MARCH 17, 1941 Members present: Mr. Eccles, Chairman; Mr. Sproul, Vice Chairman; Mr. Szymczak, Mr. McKee, Mr. Ransom, Mr. Davis, Mr. Draper, Mr. Fleming, Mr. Leach, Mr. Peyton, Mr. C. S. Young (Alternate for Mr. Davis who had been selected by the Federal Reserve Banks of Chicago and St. Louis as a representative member of the Federal Open Market Committee, but who had not yet assumed his duties). Upon motion duly made and seconded, the following resolu tion, which was in the same form as the resolution adopted at the meeting of the Federal Open Market Committee on December 18, 1940, was adopted by unanimous vote: "That the executive committee be directed until otherwise directed by the Federal Open Market Committee to arrange for such transactions for the System open market account (including purchases, sales, ex changes, replacement of maturing securities, and letting maturities run off without replacement) as in its judgment from time to time may be advisable in the light of existing conditions; provided that the aggregate amount of securities held in the account at the close of this date shall not be increased or decreased by more than $2.00,000,000." When this meeting of the Federal Open Market Committee was held the unsettled conditions resulting from the war, which are discussed else where in this report, continued to exist and were becoming more intensified. In these circumstances, the members of the Committee were agreed that it was essential that its executive committee continue to be in a position to act in accordance with its best judgment within the limits established by the above resolution and in the light of developments from time to time and that, therefore, the existing authority of the executive committee should be renewed. During the discussion of the resolution, question was raised whether, because of possible emergencies that might develop, the $2.00,000,000 limit in the resolution should be increased, but there was unanimous agreement that if it should appear likely that occasion would arise for the purchase or sale of securities beyond that limit another meeting of the Committee should be called. MEETING ON JUNE 10, 1941 Members present: Mr. Eccles, Chairman; Mr. Sproul, Vice Chairman; Mr. Szymczak, Mr. McKee, Mr. Ransom, Mr. Draper, Mr. Fleming, Mr. Leach, Mr. Davis, Mr. Peyton. Upon motion duly made and seconded, and by unanimous vote, the following resolution was adopted: "That the executive committee be directed until otherwise directed by the Federal Open Market Committee to arrange for such transactions for the System open market account (including purchases, sales, ex changes, replacement of maturing securities, and letting maturities run off without replacement) as in its judgment from time to time may Digitized for FRASER 63 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

64 ANNUAL REPORT OF BOARD OF GOVERNORS be advisable in the light of existing conditions; provided that the aggregate amount of securities held in the account at the close of this date shall not be increased or decreased by more than $xoo,ooo,ooo.'' This resolution, which was in the same form as the resolution approved at the two previous meetings of the Federal Open Market Committee, was adopted for substantially the same reasons as prompted the earlier actions. MEETING* ON SEPTEMBER iqy 1941 Members present: Mr. Eccles, Chairman; Mr. Sproul, Vice Chairman; Mr. Szymczak, Mr. McKee, Mr. Ransom, Mr. Draper, Mr. Fleming, Mr. Leach, Mr. Davis, Mr. Peyton. Upon motion duly made and seconded, the following resolu tion was adopted by unanimous vote: "That the executive committee be directed until otherwise directed by the Federal Open Market Committee to arrange for such transactions for the System open market account (including purchases, sales, ex changes, replacement of maturing securities, and letting maturities run off without replacement) as in its judgment from time to time may be advisable in the light of existing conditions; provided that the aggregate amount of securities held in the account at the close of this date shall not be increased or decreased by more than $2.00,000,000." The action of the Committee on this resolution was taken in the light of further developments in the war situation, the action of the Board of Gover nors of the Federal Reserve System on September IT,, 1941, to increase re serve requirements of member banks, effective November 1, 1941, and other steps that had been taken or had been suggested to finance the defense program and to combat inflationary tendencies. It was recognized by the Committee that the increase in required reserves of member banks might cause some liquidation in bank holdings of Government securities over the next few weeks, and that the System might be called upon to purchase further amounts of securities to meet this condition as well as possible further market disturbances resulting from the war. There was unanimous agree ment, however, that, in the absence of unforeseen developments, the situa tion could be met by continuing the authority of the executive committee in the same form as that granted at the three previous meetings of the full Committee. MEETING ON DECEMBER IX, 1941 Members present: Mr. Eccles, Chairman; Mr. Sproul, Vice Chairman; Mr. Szymczak, Mr. McKee, Mr. Ransom, Mr. Draper, Mr. Fleming, Mr. Leach, Mr. Davis, Mr. Peyton. On December 8, 1941, at the request of the members of the executive committee, the members of the Federal Open Market Committee approved an increase from $2.00,000,000 to $400,000,000 in the limit on the authority granted to the executive committee to increase or decrease the total amount of securities held in the System account. At this meeting, upon motion duly made and seconded, and by unanimous vote, the action of the members of the Federal Open Market Committee as stated above was approved, ratified and confirmed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 65 Following the attack by Japan on the territory of Hawaii, the Pacific island possessions of the United States, and the Philippine Islands, members of the executive committee met and decided that, in order that it might be in a position to take whatever action was necessary in an effort to prevent disorderly conditions in the Government securities market that might otherwise develop as a result of the entry of the United States into the war, the members of the Federal Open Market Committee should be requested to approve an increase to $400,000,000 in the limit of the authority of the executive committee to increase or decrease the total amount of securities held in the System account. The members of the Federal Open Market Committee who were not members of the executive committee were called by telephone on December 8 and there was unanimous agreement that the enlarged authority should be granted for the purpose stated. The securities purchased for the System account during the week following the outbreak of war included $45,170,000 of the new 1951-1955 and 1967-1971 bonds, and $11,370,000 of Treasury bills, $1,000,000 of which were resold during the week. Purchases of $13,700,000 of various issues of bonds that were in supply in the market were also made against the sale of a like amount of bonds that were in demand. Upon motion duly made and seconded, the following resolu tion was adopted by unanimous vote, with the understanding that, when the market recovered and conditions justified, the securities added to the System account during the current week would be resold: "That the executive committee be directed until otherwise directed by the Federal Open Market Committee to arrange for such transactions for the System open market account (including purchases, sales, ex changes, replacement of maturing securities, and letting maturities run off without replacement) as in its judgment from time to time may be advisable in the light of existing conditions; provided that the aggregate amount of securities held in the account at the close of this date shall not be increased or decreased by more than $500,000,000." This resolution was in the same form as the resolution adopted at the four previous meetings of the Committee except that it increased from $100,000,000 to $500,000,000 the amount by which the aggregate amount of securities held in the System account could be increased or decreased. On the day this meeting was held the indications were that the market's reac tion to the outbreak of war would not be a serious one, but because of the uncertainty in the general picture and the possibility that further war developments might call for substantial purchases of securities for the System open market account, the Committee was of the opinion that broader authority should be vested in the executive committee to take such action as in its judgment might be required by any conditions that might arise, it being understood that if it should appear that authority was needed beyond the limit granted in the resolution another meeting of the Federal Open Market Committee should be called. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECOMMENDATION OF THE FEDERAL ADVISORY COUNCIL TO THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM SEPTEMBER 15, 1941 Topic No. 1. Reserve Requirements. RECOMMENDATION: The Federal Advisory Council has frequently drawn the attention of the Board of Governors to the many elements in our mone tary and credit system that are of an inflationary character and has recom mended action to eliminate or to control them. Most of these defects require legislation for correction; and a composite program looking to that end was contained in the special report by the System to the Congress dated December 31, 1940. In the meanwhile inflationary tendencies have mani fested themselves with steadily growing and disturbing rapidity. Concerned by this development the Federal Advisory Council, therefore, unanimously recommends to the Board of Governors that it immediately raise the reserve requirements for the three classifications of banks to the maximum limits authorized by the Banking Act of 1935, such increases to become effective upon 30 days' notice to the banks affected. 66 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OF THE FEDERAL RESERVE SYSTEM [December 31, 1941] Term expires MARRINER S. ECCLES, of Utah, Chairman January 31, 1944 RONALD RANSOM, of Georgia, Vice Chairman January 31, 1942. M. S. SZYMCZAK, of Illinois January 31, 1948 JOHN K. MCKEE, of Ohio January 31, 1946 ERNEST G. DRAPER, of Connecticut January 31, 1950 LAWRENCE CLAYTON, Assistant to the Chairman ELLIOTT THURSTON, Special Assistant to the Chairman CHESTER MORRILL, Secretary LISTON P. BETHEA, Assistant Secretary S. R. CARPENTER, Assistant Secretary FRED A. NELSON, Assistant Secretary WALTER WYATT, General Counsel J. P. DREIBELBIS, Assistant General Counsel GEORGE B. VEST, Assistant General Counsel B. MAGRUDER WINGFIELD, Assistant General Counsel E. A. GOLDENWEISER, Director, Division of Research and Statistics WOODLIEF THOMAS, Assistant Director, Division of Research and Statistics LEO H. PAULGER, Chief, Division of Examinations R. F. LEONARD, Assistant Chief, Division of Examinations C. E. CAGLE, Assistant Chief, Division of Examinations EDWARD L. SMEAD, Chief, Division of Bank Operations J. R. VAN FOSSEN, Assistant Chief, Division of Bank Operations J. E. HORBETT, Assistant Chief, Division of Bank Operations CARL E. PARRY, Chief, Division of Security Loans PHILIP E. BRADLEY, Assistant Chief, Division of Security Loans O.E. FOULK, Fiscal Agent JOSEPHINE E. LALLY, Deputy Fiscal Agent FEDERAL OPEN MARKET COMMITTEE [December 31, 1941] Members MARRINER S. ECCLES, Chairman (Board of Governors) ALLAN SPROUL, Vice Chairman (Elected by Federal Reserve Banks of Boston and New York) M. S. SZYMCZAK (Board of Governors) JOHN K. MCKEE (Board of Governors) RONALD RANSOM (Board of Governors) ERNEST G. DRAPER (Board of Governors) M. J. FLEMING (Elected by Federal Reserve Banks of Philadelphia and Cleveland) HUGH LEACH (Elected by Federal Reserve Banks of Richmond, Atlanta, and Dallas) CHESTER C. DAVIS (Elected by Federal Reserve Banks of Chicago and St. Louis) JOHN N. PEYTON (Elected by Federal Reserve Banks of Minneapolis, Kansas City, and San Fran cisco) Officers CHESTER MORRILL, Secretary S. R. CARPENTER, Assistant Secretary E. A. GOLDENWEISER, Economist JOHN H. WILLIAMS, Associate Economist WALTER WYATT, General Counsel J. P. DREIBELBIS, Assistant General Counsel Agent FEDERAL RESERVE BANK OF NEW YORK R. G. ROUSE, Manager of System Open Market Account 67 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL ADVISORY COUNCIL [December 31, 1941] OFFICERS President, EDWARD E. BROWN Vice President, GEORGE L. HARRISON Secretary, WALTER LICHTENSTEIN EXECUTIVE COMMITTEE EDWARD E. BROWN S. E. RAGLAND GEORGE L. HARRISON B. G. HUNTINGTON W. F. KURTZ ROBERT M. HANES MEMBERS District No. 1—CHARLES E. SPENCER, JR., President, The First National Bank of Boston, Boston, Massachusetts. District No. 2.—GEORGE L. HARRISON, President, New York Life Insurance Company, New York, New York. District No. 3—WILLIAM F. KURTZ, President, The Pennsylvania Company for Insurances on Lives and Granting Annuities, Philadelphia, Pennsylvania. District No. 4—B. G. HUNTINGDON, President, The Huntington National Bank, Columbus, Ohio# District No. 5—ROBERT M. HANES, President, Wachovia Bank and Trust Company, Winston- Salem, North Carolina. District No. 6—RYBURN G. CLAY, Director, Fulton National Bank, Atlanta, Georgia. District No. 7—EDWARD E. BROWN, President, The First National Bank of Chicago, Chicago, Illinois. District No. 8—S. E. RAGLAND, President, The First National Bank of Memphis, Memphis, Tennessee. District No. 9—LYMAN E. WAKEFIELD, President, First National Bank and Trust Company of Minneapolis, Minneapolis, Minnesota. District No. 10—W. DALE CLARK, President, The Omaha National Bank, Omaha, Nebraska. District No. 11—R. E. HARDING, President, The Fort Worth National Bank, Fort Worth, Texas. District No. 12.—PAUL S. DICK, President, United States National Bank, Portland, Oregon. 68 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 6 9 SENIOR OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS [December 31, 1941] CHAIRMEN AND DEPUTY CHAIRMEN Federal Reserve Bank' of— Chairman Deputy Chairman Boston Frederic H. Curtiss Henry S. Dennison New York Beardsley Ruml Edmund E. Day Philadelphia Thomas B. McCabe Warren F. Whittier Cleveland Geo. C. Brainard R. E. Klages Richmond Robt. Lassiter W. G. Wysor Atlanta Frank H. Neely J. F. Porter Chicago F. J. Lewis St. Louis Wm. T. Nardin Oscar Johnston Minneapolis W. C. Coffey Roger B. Shepard Kansas City R. B. Caldwell J. J. Thomas Dallas J. H. Merritt Jay Taylor San Francisco R. C. Force St. George Holden Each Federal Reserve Bank has nine directors divided equally into Classes A, B, and C. The term of office of a director is three years. The Class C directors are appointed by the Board of Governors of the Federal Reserve System, and cannot be officers, directors, employees, or stock holders of any bank. The Class B directors, elected by member banks, must be actively engaged in some commercial, agricultural, or industrial pursuit and may not be officers, directors, or employees of any bank. The Class A directors are elected by the member banks as the banks' own representatives. For the purpose of electing Class A and Class B directors, the member banks in each Federal Reserve district are divided into three groups—large, small, and medium-sized banks. Each of the three groups elects one Class A and one Class B director. The Board of Governors of the Federal Reserve System designates one of the Class C directors as chairman and Federal Reserve agent, and another as deputy chairman. The board of directors of each Federal Reserve Bank appoints a president and first vice president, subject to the approval of the Board of Governors, to serve for terms of five years. The president is the chief executive officer of the bank and all other officers and employees are responsible to him. Federal Reserve Bank branches have either five or seven directors, of whom a majority, includ ing the managing director, are appointed by the board of directors of the parent Federal Reserve Bank and the others are appointed by the Board of Governors of the Federal Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

7o ANNUAL REPORT OF BOARD OF GOVERNORS PRESIDENTS AND VICE PRESIDENTS Federal Reserve President First Vice President Vice Presidents Bank of— Boston R. A. Young W. W. Paddock William Willett1 New York . ... Allan Sproul L. R. Rounds R. M. Gidney L. W. Knoke Walter S. Logan J. M. Rice Robert G. Rouse John H. William? Philadelphia Alfred H. Williams.... Frank J. Drinnen W. J. Davis E. C. Hill C. A. Mcllhenny2 C. A. Sienkiewicz Cleveland M.J. Fleming F. J. Zurlinden Wm. H. Fletcher R. B. Hays W. F. Taylor2 G. H. Wagner Richmond Hugh Leach J. S. Walden, Jr J. G. Fry Geo. H. Keesce1 R. W. Mercer Atlanta Malcolm H. Bryan H. F. Conniff L. M. Clark Chicago C. S. Young H. P. Preston Allan M. Black1 J. H. Dillard A. J. Mulroney St. Louis Chester C. Davis F. Guy Hitt O. M. Attebery C. M. Stewart1 Minneapolis J. M. Peyton O. S. Powell E. W. Swanson Harry I. Ziemer2 Kansas City H. G. Leedy Henry O. Koppang J. W. Helm2 D. W. Woolley Dallas R. R. Gilbert E. B. Stroud R. B. Coleman W. J. Evans W. O. Ford1 San Francisco .. . Wm. A. Day Ira Clerk C. E. Earhart1 W. M. Hale R. B. West i 1 Cashier. 2 Also Cashier. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORS OF FEDERAL RESERVE BANKS District No. 1—Boston Term Expires Dec. 31 Class A : Allan Forbes President, State Street Trust Co., Boston, Mass 1941 Leon A. Dodge President, First National Bank, Damariscotta, Me 1942 Lewis S. Reed President, Citizens and Manufacturers National Bank, Waterbury, Conn 1943 Class B: Philip R. Allen Chairman, Bird & Son, Inc., E. Walpole, Mass 1941 Edward J. Frost Vice President, Treasurer, and Director, William Filene's Sons Co., Boston, Mass 1942 Ralph E. Flanders President, Jones and Lamson Machine Co., Springfield, Vt... 1943 Class C: Frederic H. Curtiss Vice President, Board of Trustees, Wellesley College, Wellesley, Mass 1941 Henry S. Dennison President, Dennison Manufacturing Co., Framingham, Mass. 1942 Henry I. Harriman Director, New England Power Co., Boston, Mass 1943 District No. 2—New York Class A: Otis A. Thompson President, National Bank & Trust Co., Norwich, N. Y 1941 Neil H. Dorrance President, First National Bank & Trust Co , Camden, N. Y.. 1942 Leon Fraser President, First National Bank, New York, N. Y 1943 Class B: W. C. Teagle Chairman, Standard Oil Co. of New Jersey, New York, N. Y... 1941 Robert T. Stevens President, J. P. Stevens & Co., Inc., New York, N. Y 1942 Donaldson Brown Vice President, General Motors Corp., New York, N. Y 1943 Class C: Beardsley Ruml Treasurer, R. H. Macy & Co., Inc., New York, N. Y 1941 Edmund E. Day President, Cornell University, Ithaca, N. Y 1942 Randolph E. Paul Member law firm: Lord, Day & Lord, New York, N. Y 1943 Buffalo Branch Appointed by Federal Reserve Bank: R. M. O'Hara Managing Director, Buffalo, N. Y 1941 Frank F. Henry Chairman, Washburn Crosby Co., Inc., Buffalo, N. Y 1941 George F. Rand President, The Marine Trust Co., Buffalo, N. Y 1942 Raymond N. Ball President, Lincoln-Alliance Bank & Trust Co., Rochester, N. Y 1943 Appointed by Board of Governors: M. B. Folsom Treasurer, Eastman Kodak Co., Rochester, N. Y 1941 Gilbert A. Prole Genesee Farm Supply Co., Batavia, N. Y 1942 Howard Kellogg President, Spencer Kellogg & Sons, Inc., Buffalo, N. Y 1943 District No. 3—Philadelphia Class A: Joseph Wayne, Jr Chairman, Philadelphia National Bank, Philadelphia, Pa 1941 George W. Reily President, Harrisburg National Bank, Harrisburg, Pa 1942 John B. Henning President, Wyoming National Bank, Tunkhannock, Pa 1943 Class B: Harry L. Cannon President, H. P. Cannon & Son, Inc., Bridgeville, Del 1941 W. D. Kerlin Secretary and Treasurer, Camden Forge Co., Camden, N. J . 1942 C. Frederick C. Stout John R. Evans & Company, Camden, N. J 1943 Class C: Winfield W. Riefler Institute for Advanced Study, Princeton, N. J 1941 Thomas B. McCabe President, Scott Paper Co., Chester, Pa 1942 Warren F. Whittier Farmer, dairyman and cattle breeder, Douglassville, Pa 1943 District No. 4—Cleveland Class A: F. F. Brooks President, First National Bank, Pittsburgh, Pa 1941 Ben R. Conner President, First National Bank, Ada, Ohio 1942 H. B. McDowell President, McDowell National Bank, Sharon, Pa 1943 Class B: G. D. Crabbs President, Philip Carey Manufacturing Co., Cincinnati, Ohio 1941 T. E. Millsop President, Weirton Steel Co., Weirton, W. Va 1942 R. P. Wright Secretary-Treasurer, Reed Manufacturing Co., Erie, Pa 1943 Class C: Walter H. Lloyd Editor, The Ohio Farmer, Cleveland, Ohio 1941 R. E. Klages President, Columbus Auto Parts Co., Columbus, Ohio 1942 Geo. C. Brainard President, General Fireproofing Co., Youngstown, Ohio 1943 7i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72- ANNUAL REPORT OF BOARD OF GOVERNORS DIRECTORS OF FEDERAL RESERVE BANKS—Continued Cincinnati Branch Term Expires Appointed by Federal Reserve Bank: Dec. 31 B. J. Lazar Managing Director, Cincinnati, Ohio 1941 Buckner Woodford Vice President and Cashier, Bourbon-Agricultural Bank and Trust Co., Paris, Ky 1941 John J. Rowe President, Fifth Third Union Trust Co., Cincinnati, Ohio . .. 1942 Appointed by Board of Governors: Stuart B. Sutphin President, I. V. Sutphin Co., Cincinnati, Ohio 1941 Frank A. Brown Farmer, Chillicothe, Ohio 1942 Pittsburgh Branch Appointed by Federal Reserve Bank: P. A. Brown Managing Director, Pittsburgh, Pa 1941 Clarance Stanley President, Union Trust Co., Pittsburgh, Pa 1941 E. B. Harshaw :. .Vice President and Cashier, Grove City National Bank, Grove City, Pa 1942 Appointed by Board of Governors: H. S. Wherrett President, Pittsburgh Plate Glass Co., Pittsburgh, Pa 1941 Geo. T. Ladd President, United Engineering & Foundry Co., Pittsburgh, Pa. 1942 District No. 5—Richmond Class A: L. E. Johnson Chairman, First National Bank, Alderson, W. Va 1941 Charles E. Rieman President, Western National Bank, Baltimore, Md 1942 J. C. Braswell President, Planters National Bank & Trust Co., Rocky Mount, N. C 1943 Class B: Edwin Malloy President & Treasurer, Cheraw Cotton Mills, Inc., Cheraw, S. C 1941 Chas. C. Reed Vice President & General Manager, Williams & Reed, Inc., Richmond, Va 1942 John H. Hanna '.... Chairman, Capital Transit Co., Washington, D. C 1943 Class C: Charles P. McCormick President, McCormick & Co., Inc., Baltimore, Md 1941 W. G. Wysor General Manager, Southern States Cooperative, Inc., Rich mond, Va 1942 Robt. Lassiter Chairman, Mooresville Cotton Mills, Mooresville, N. C 1943 Baltimore Branch Appointed by Federal Reserve Bank: W. R. Milford Managing Director. Baltimore, Md 1941 George W. Reed President, National Marine Bank, Baltimore, Md 1941 James C. Fenhagen Chairman, Executive Committee, Baltimore National Bank, Baltimore, Md 1942 James Dixon President, Easton National Bank, Easton, Md 1943 Appointed by Board of Governors: W. Frank Thomas Construction Engineer and Real Estate Management, West minster, Md 1941 Jos. D. Baker, Jr Secretary & Treasurer, Standard Lime and Stone Co., Balti more, Md 1942 WT. Frank Roberts President, Standard Gas Equipment Corp., Baltimore, Md... 1943 Charlotte Branch Appointed by Federal Reserve Bank: W. T. Clements ' Managing Director, Charlotte, N. C 1941 J. Gerald Cowan Vice President, Wachovia Bank & Trust Co., Asheville, N. C... 1941 B. M. Edwards Executive Vice President, South Carolina National Bank, Columbia, S. C 1942 T. E. Hemby Executive Vice President, American Trust Co., Charlotte, N. C 1943 Appointed by Board of Governors: Chas. L. Creech, Sr Chairman, B. F. Huntley Furniture Co., Winston-Salem, N. C, 1941 D. W. Watkins Director of Extension, Clemson College, Clemson, S. C 1942 Geo. M. Wright President, Republic Cotton Mills, Great Falls, S. C 1943 District No. 6—Atlanta Class A. Geo. J. White President, First National Bank, Mount Dora, Fla 1941 Thos. K. Glenn .Chairman, Trust Co. of Georgia, Atlanta, Ga 1942 W. D. Cook Executive Vice President, First National Bank, Meridian, Miss 1943 Class B. Ernest T. George President and Chairman, Seaboard Refining Company, Ltd., New Orleans, La 1941 J. A. McCrary Vice President & Treasurer, J. B. McCrary Company, Inc., Atlanta, Ga .... 1942 Fitzgerald Hall President, Nash., Chat. & St. Louis Ry., Nashville, Tenn 1943 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 73 DIRECTORS OF FEDERAL RESERVE BANKS—Continued Term Expries Class C: . . . . De£- 31 Frank H. Neely Executive Vice President & Secretary, Rich's Inc., Atlanta, Ga ....;..'•:••:•.. 1941 J. F. Porter . President, Tenn. Farm Bureau Fed., Columbia, Tenn 1942 Rufus C. Harris President, Tulane University, New Orleans, La 1943 Birmingham Branch Appointed by Federal Reserve Bank: P. L. T. Beavers Managing Director, Birmingham, Ala 1941 Gordon D. Palmer President, First National Bank, Tuscaloosa, Ala 1941 John C. Persons/. ........ President, First National Bank, Birmingham, Ala 1942 John S. Coleman President, Birmingham Tr. & Sav. Co., Birmingham, Ala.... 1943 Appointed by Board of Governors: Donald Comer Chairman, Avondale Mills, Birmingham, Ala 1941 Howard Gray Farmer, New Market, Ala. ' 1942 Ed. L. Norton Exec. Vice President, Munger Realty Co., Birmingham, Ala... 1943 Jacksonville Branch Appointed by Federal Reserve Bank: Geo. S. Vardeman, Jr Managing Director, Jacksonville, Fla 1941 W. R. McQuaid President, Barnett National Bank, Jacksonville, Fla 1941 B. C. Teed First Vice President, First National Bank, Palm Beach, Fla... 1942 J. C. McCrocklin Executive Vice President, First National Bank, Tarpon Springs, Fla 1943 Appointed by Board of Governors: Robert H. Gamble President, Florida Brick & Tile Corp., Jacksonville, Fla:..... 1941 Howard Phillips Executive Vice President, Dr. P. Phillips Co., Inc., Orlando; Fla ,>. :..;.. 1942. F. D. Jackson President, Jackson Grain Co., Tampa, Fla 1943 Nashville Branch Appointed by Federal Reserve Bank: Joel B. Fort, Jr Managing Director, Nashville, Tenn 1941 E. B. Maupin Cashier, Peoples National Bank, Shelbyville, Tenn 1941 F. M. Farris President, Third National Bank, Nashville, Tenn. 1942 Geo. Neal Bass Cashier, First National Bank of Franklin Co., Decherd, Tenn . 1943 Appointed by Board of Governors: Clyde B. Austin President, The Austin Co., Inc., Greeneville, Tenn 1941 W. E. McEwen Farmer and Stock Raiser, Williamsport, Tenn 1942 E. W. Palmer President, Kingsport Press, Inc., Kingsport, Tenn 1943 New Orleans Branch Appointed by Federal Reserve Bank: E. P. Paris Managing Director, New Orleans, La 1941 Herbert Holmes President, Delta National Bank, Yazoo City, Miss 1941 E. E. Soulier President, First National Bank, Lafayette, La 1942 O. G. Lucas President, National Bank of Commerce, New Orleans, La.... 1943 Appointed by Board of Governors: Alexander Fitz-Hugh Vice President, P. P. Williams Co., Vicksburg, Miss 1941 H. G. Chalkley, Jr President and General Manager, Sweet Lake Land & Oil Co., Inc., Lake Charles, La 1942 E. F. Billington Vice President and Secretary, Soule Steam Feed Works, Meridian, Miss . 1943 District No. 7—Chicago Class A: Frank D. Williams Executive Vice President & Cashier, First Capital National Bank, Iowa City, Iowa 1941 Walter J. Cummings Chairman, Cont'l 111. Nat. Bank and Tr. Co., Chicago, 111 1942 Edward R. Estberg Chairman, Waukesha National Bank, Waukesha, Wis 1943 Class B: # Nicholas H. Noyes Vice President & Treasurer, Eh Lilly and Company, Indi anapolis, Ind 1941 Max W. Babb President, Allis- Chalmers Mfg. Co., Milwaukee, Wis 1942 Charles B. Van Dusen Director, S. S. Kresge Co., Detroit, Mich 1943 Class C: Simeon E. Leland Chairman, Department of Economics, University of Chicago, Chicago, 111 1941 W. W. Waymack Vice President & Editor, Des Moines Register and Tribune, Des Moines, Iowa 1942 F.J.Lewis Chairman, F. J. Lewis Mfg. Co., 3650 East 112th Street, Chicago, 111 1943 Detroit Branch Appointed by Federal Reserve Bank: H. J. Chalfont Managing Director, Detroit, Mich 1941 Joseph M. Dodge President, The Detroit Bank, Detroit, Mich 1941 James E. Davidson President, Peoples Com. & Sav. Bank, Bay City, Mich 1942 Walter S. McLucas Chairman, The National Bank of Detroit, Detroit, Mich 1943 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

74 ANNUAL REPORT OF BOARD OF GOVERNORS DIRECTORS OF FEDERAL RESERVE BANKS—Continued Term Expires Appointed by Board of Governors: Dec. 31 L. Whitney Watkins Farmer, Manchester, Mich 1941 H. L; Pierson. President, Detroit Harvester Co., Detroit, Mich 1942 C. W. Avery President & Chairman, Murray Corp. of America, Detroit, Mich 1943 District No, 8—St. Louis Class A: Sidney Maestre President, Mississippi Valley Trust Co., St. Louis, Mo 1941 Max B. Nahm Vice President, Citizens National Bank, Bowling Green, Ky. 1942 C. R. Corlis Cashier, Anna National Bank, Anna, 111 1943 Class B: John R. Stanley Secretary-Treasurer, Stanley Clothing Co., Evansville, Ind.. 1941 J. W. Harris Chairman, Harris-Langenberg Hat Co., St. Louis, Mo 1942 H. H. Tucker President, Fones Brothers Hardware Co., Little Rock, Ark.. . 1943 Class C: Douglas W. Brooks President, The Newburger Co., Falls Bldg., Memphis, Tenn... 1941 Wm. T. Nardin Vice President & General Manager, Pet Milk Company, St. Louis, Mo 1942 Oscar Johnston President, Delta and Pine Land Co., Scott, Miss 1943 Little Rock Branch Appointed by Federal Reserve Bank: A. F. Bailey Managing Director, Little Rock, Ark 1941 Paul R. McCoy Chairman, Peoples National Bank, Stuttgart, Ark 1941 James H. Penick President, W. B. Worthen Co., Little Rock, Ark 1942 Arthur E. McLean. President, Commercial National Bank, Little Rock, Ark 1943 Appointed by Board of Governors: Vacancy 1941 R. E. Short Farmer, Brinkley, Ark 1942 I. N. Barnett, Jr Manager, Barnett Bros. Mercantile Company, Batesville, Ark 1943 Louisville Branch Appointed by Federal Reserve Bank: C. A. Schacht Managing Director, Louisville, Ky 1941 Ralph C. Gifford President, First National Bank, Louisville, Ky 1941 J. O. Sanders President, First National Bank, Huntingburg, Ind 1942 Phil E. Chappell President, Planters Bank & Trust Co., Hopkinsville, Ky 1943 Appointed by Board of Governors: J. B. Hill President, Louisville & Nashville R.R., Louisville, Ky 1941 G. O. Boomer Vice President, Girdler Corporation, Louisville, Ky 1942 Perry B. Gaines Farmer and Stockraiser, Carrollton, Ky 1943 Memphis Branch Appointed by Federal Reserve Bank: W. H. Glasgow Managing Director, Memphis, Tenn 1941 Oliver Benton President, National Bank of Commerce, Jackson, Tenn 1941 V. J. Alexander President, Union Planters National Bank & Trust Co., Mem phis, Tenn 1942 B. A. Lynch President, Farmers Bank & Trust Co., Blytheville, Ark 1943 Appointed by Board of Governors: J. Holmes Sherard President, Jno. H. Sherard & Son, Sherard, Miss 1941 J. P. Norfleet President, Sledge & Norfleet, Memphis, Tenn 1942 R. C. Branch Cotton Farmer and Ginner, Pecan Point, Ark 1943 District No. 9—Minneapolis Class A: J. R. McKnight President, Pierre National Bank, Pierre, S. D 1941 F. D. McCartney Vice President, First National Bank, Oakes, N. D 1942 S. S. Ford President, Northwestern National Bank & Trust Co., Minne apolis, Minn 1943 Class B: J. E. O'Connell President, Eddy's Bakeries, Inc., Helena, Mont 1941 Albert P. Funk President, LaCrosse Rubber Mills Co., LaCrosse, Wis 1942 Homer P. Clark Chairman, West Publishing Co., St. Paul, Minn 1943 Class C. Roger B. Shepard President, Finch, Van Slyck & McConville, St. Paul, Minn 1941 W. C. Coffey President, University of Minnesota, Minneapolis, Minn 1942 W. D. Cochran President, Cochran Freight Lines, Iron Mountain, Mich 1943 Helena Branch Appointed by Federal Reserve Bank: R. E. Towle Managing Director, Helena, Mont 1941 Peter Pauly President, Deer Lodge Bank and Trust Co., Deer Lodge, Mont 1941 P. B. McClintock Cashier, Farmers National Bank, Chinook, Mont 1942 Appointed by Board of Governors: H. D. Myrick. Farmer, Square Butte, Mont 1941 Alex Cunningham Vice President & Treasurer, Western Life Insurance Co., Helena, Mont 1942 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 75 DIRECTORS OF FEDERAL RESERVE BANKS—Continued District No. 10—Kansas City Term Expires Class A: Dec. 31 E. E. Mullaney President, Farmers & Merchants Bank, Hill City, Kans 1941 Thomas A. Dines President, U. S. National Bank, Denver, Colo 1942 M. A. Limbocker President & Chairman, Citizens National Bank, Emporia, Kans 1943 Class B: L. E. Phillips Vice President, Phillips Petroleum Co., Bartlesville, Okla 1941 Willard D. Hosford Vice President, John Deere Plow Co., Omaha, Neb 1942 J. M. Bernardin Vice President, Burk Lumber Company, Dawson, N. M 1943 Class C: J. J. Thomas Attorney-at-Law, Seward, Neb 1941 Clarence Roberts Editor, The Farmer-Stockman, Oklahoma City, Okla 1942 R. B. Caldwell McCune, Caldwell & Downing, Kansas City, Mo 1943 Denver Branch Appointed by Federal Reserve Bank: Jos. E. Olson Managing Director, Denver, Colo 1941 Harold Kountze President, Colorado National Bank, Denver, Colo 1941 Roblin H. Davis President, Denver National Bank, Denver, Colo 1942 W. C. Kurtz President & General Manager, Independent Lumber Co., Grand Junction, Colo 1943 Appointed by Board of Governors: T. B. Grant Lewis and Grant, Denver, Colo. 1941 Wilson McCarthy President, Denver & Salt Lake R. R. Co., Denver, Colo 1942 Vacancy 1943 Oklahoma City Branch Appointed by Federal Reserve Bank: G. H. Pipkin Managing Director, Oklahoma City, Okla 1941 L. D. Edgington President, First National Bank, Ponca City, Okla 1941 A. E. Stephenson President, Central National Bank, Enid, Okla 1942 D. M. Tyler First Vice President, Dewey Portland Cement Co., Dewey, Okla 1943 Appointed by Board of Governors: Neil R. Johnson Rancher and Farmer, Norman, Okla 1941 Lloyd Noble President, Noble Drilling Corp., Tulsa, Okla 1942 Phil Ferguson Rancher, Woodward, Okla 1943 Omaha Branch Appointed by Federal Reserve Bank: L. H. Earhart Managing Director, Omaha, Neb.. 1941 George W. Holmes President, First National Bank, Lincoln, Neb 1941 Thomas L. Davis President, First National Bank, Omaha, Neb 1942 Geo A. Bible ; President, First National Bank, Rawlins, Wyo 1943 Appointed by Board of Governors: R. E. Campbell Chairman, Miller & Paine, Lincoln, Neb 1941 H. L. Dempster President, Dempster Mill Mfg. Co., Beatrice, Neb 1942 W. H. Schellberg President, Union Stock Yards Co., Omaha, Neb 1943 District No. 11—Dallas Class A: J. E. Woods President, Teague National Bank, Teague, Tex 1941 Ed. H. Winton Executive Vice President, Continental National Bank, Fort Worth, Tex 1942 Frank Turner President, First National Bank, Decatur, Tex 1943 Class B: E. L. Kurth Vice President & General Manager, Angelina County Lumber Co., Keltys, Tex 1941 J. R. Milam President, Cooper Company, Inc., Waco, Tex 1942 Geo. A. Hill, Jr President, Houston Oil Company of Texas, Houston, Tex 1943 Class C: J. H. Merritt Retired, McKinney, Tex 1941 Jay Taylor Rafter O Cattle Company, Amarillo, Tex 1942 J. B. Cozzo Womack and Cozzo, Dallas, Tex 1943 El Paso Branch Appointed by Federal Reserve Bank: J. L. Hermann Managing Director, El Paso, Tex 1941 Frank R. Coon President, Mimbres Valley Bank, Deming, N. M 1941 H. A. Jacobs Vice President, El Paso National Bank, El Paso. Tex 1942 R. W. McAfee Vice President, State National Bank, El Paso, Tex 1943 Appointed by Board of Governors: F. M. Hayner President, Las Cruces Lumber Co., Las Cruces, N. M 1941 R. E. Sherman President, Leavell and Sherman, Inc., El Paso, Tex 1942 Jack B. Martin President, Arizona Ice & Cold Storage Co., Tucson, Ariz.... 1943 Houston Branch Appointed by Federal Reserve Bank: W. D. Gentry Managing Director, Houston, Tex , 1941 Sam R. Lawder Vice President, First National Bank, Houston, Tex. 1941 P. B. Doty President, First National Bank, Beaumont, Tex 1942 W. N. Greer President, Citizens State Bank, Houston, Tex 1943 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 ANNUAL REPORT OF BOARD OF GOVERNORS DIRECTORS OF FEDERAL RESERVE BANKS—Continued Term Expires Appointed by Board of Governors: Dec. 31 H. Renfert Renfert-Helmbrecht Co., Galveston, Tex 1941 Sam Taub J.N. Taub & Sons, Houston, Tex 1942 George G. Chance Farmer, Bryan, Tex 1943 San Antonio Branch Appointed by Federal Reserve Bank: M. Crump Managing Director, San Antonio, Tex 1941 J. K. Beretta Chairman, National Bank of Commerce, San Antonio, Tex... 1941 E. J. Miller. J President, South Texas National Bank, San Antouio, Tex... 1942 J. A. Walker Cashier, Del Rio National Bank, Del Rio, Tex 1943 Appointed by Board of Governors: J. M. Odom General Contractor, Austin, Tex 1941 Edwin F. Flato President, Corpus Christi Hardware Company, Corpus Christi, Tex 1942 Dolph Briscoe Stockraiser, Uvalde, Tex 1943 District No. 12—San Francisco Class A: > Reno Odlin , President, Puget Sound National Bank, Tacoma, Wash 1941 Carroll F. Byrd Executive Vice President & Chairman, First National Bank, Willows, Calif 1942 C. K. Mcintosh Chairman, Bank of California, N. A., San Francisco, Calif... 1943 Class B: Wm. G. Volkmann Partner, A. Schilling and Co., San Francisco, Calif 1941 Reese H. Taylor President, Union Oil Company, Los Angeles, Calif 1942 Elmer H. Cox President, Madera Sugar Pine Co., San Francisco, Calif 1943 Class C: R. C. Force Chairman, Executive Committee, Caterpillar Tractor Co., San Leandro, Calif 1941 C. Thorpe General Manager, California Walnut Growers Assn., Los Angeles, Calif 1942 St. George Holden President, St. George Holden Realty Co., San Francisco, Calif 1943 Los Angeles Branch Appointed by Federal Reserve Bank: W. N. Ambrose Managing Director, Los Angeles, Calif 1941 C. E. Brouse President, Citizens National Trust & Savings Bank, River side, Calif 1941 H. D. Ivey President, Citizens National Trust & Savings Bank, Los Angeles, Calif 1942 A ppointed by Board of Governors: C. V. Newman President, Calavo Growers of California, Los Angeles, Calif.. 1941 W. S. Rosecrans Land Management & Investments, Los Angeles, Calif 1942 Portland Branch Appointed by Federal Reserve Bank: D. L. Davis Managing Director, Portland, Ore 1941 E. B. MacNaughton President, First National Bank, Portland, Ore 1941 N. A. Davis Vice President, Baker-Boyer National Bank, Walla Walla, Wash 1942 Appointed by Board of Governors: George T. Gerlinger President, Willamette Valley Lumber Company, Portland, Ore m 1941 A. E. Engbretson President, Engbretson Seed Co., Astoria, Ore 1942 Salt Lake City Branch Appointed by Federal Reserve Bank: W. L. Partner Managing Director, Salt Lake City, Utah 1941 Frederick P. Champ President, Utah Mortgage Loan Corp., Logan, Utah 1941 Orval W. Adams Executive Vice President, Utah State National Bank, Salt Lake City, Utah 1942 Appointed by Board of Governors: Herbert S. Auerbach N President, Auerbach Co., Salt Lake City, Utah 1941 R. C. Rich President, R. C. Rich Sheep Co., Burley, Idaho 1942 Seattle Branch Appointed by Federal Reserve Bank: C. R. Shaw Managing Director, Seattle, Wash 1941 Andrew Price President, National Bank of Commerce, Seattle, Wash 1941 Fred L. Stanton Vice President & Secretary, Washington Trust Company, Spokane, Wash 1942 Appointed by Board of Governors: Charles F. Larrabee Vice President, Pacific American Fisheries, Inc., Bellingham, Wash 1941 Fred Nelsen Dairy Farmer, Seattle, Wash 1942 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATE BANK AND TRUST COMPANY MEMBERS Following is a list of the 1,502. State bank and trust company members of the Federal Reserve System on December 31, 1941. DISTRICT NO. 1 (43 banks) | DISTRICT NO. 2—Continued CONNECTICUT' (6 banks) NEW JERSEY—continued Hartford Phoenix State Bank & Trust Co Dunellen Peoples Trust Co. Meriden Puritan Bank & Trust Co. East Orange Ampere Bank & Trust Co. New Haven Union & New Haven Trust Co. Savings Investment & Trust Co. Torrington Brooks Bank & Trust Co. Elizabeth Central Home Trust Co. Waterbury Colonial Trust Co. Elizabethport Banking Co. Waterbury Trust Co. Fair Lawn Pair Lawn-Radburn Trust Co. Fort Lee Fort Lee Trust Co. MAINE (5 banks) Franklin Sussex County Trust Co. Glen Ridge Glen Ridge Trust Co. Augusta Depositors Trust Co. Glen Rock Glen Rock Bank Bangor Merrill Trust Co. Hackensack Hackensack Trust Co. Bar Harbor Bar Harbor Banking & Trust Co. Peoples Trust Co. of Bergen Ellsworth Union Trust Co. County Sanford Sanford Trust Co. Jersey City Commercial Trust Co. of New Jersey MASSACHUSETTS (29 banks) Keyport Keyport Banking Co. Linden Linden Trust Co. Arlington Menotomy Trust Co. Long Branch Long Branch Trust Co. Boston New England Trust Co. Maplewood Maplewood Bank & Trust Co Old Colony Trust Co. Montclair Bank of Montclair Pilgrim Trust Co. Montclair Trust Co. State Street Trust Co. Morristown Morristown Trust Co. United States Trust Co. Newark Clinton Trust Co. Bridgewater Bridgewater Trust Co. Columbus Trust Co. Brookline Norfolk County Trust Co. Federal Trust Co. Cambridge County Bank & Trust Co. Fidelity Union Trust Co. Harvard Trust Co. Franklin-Washington Trust Co. Fall River B.M.C. Durfee Trust Co. Merchants & Newark Trust Co. Fall River Trust Co. United States Trust Co. Gloucester Gloucester Safe Deposit & Trust West Side Trust Co. Co. Nutley Bank of Nutley Greenfield Franklin County Trust Co. Passaic Bank of Passaic & Trust Co. Holyoke Hadley Falls Trust Co. Peoples Bank & Trust Co. Hyannis Hyannis Trust Co. Perth Amboy First Bank & Trust Co. Lynn Security Trust Co. Phillipsburg .Phillipsburg Trust Co. Milton Blue Hill Bank & Trust Co. Plainfield Mid-Citv Trust Co. Newton Newton Trust Co. Plainfield Trust Co. Norwood Norwood Trust Co. State Trust Co. Quincy Quincy Trust Co. Red Bank Merchants Trust Co. Salem Naumkeag Trust Co. Ridgefield Park Ridgefield Park Trust Co. Somerville Somerville Trust Co. Ridgewood North Jersey Trust Co. Springfield Springfield Safe Deposit & Trust Rochelle Park Rochelle Park Bank Co. Rutherford Rutherford Trust Co. Union Trust Co. South Orange South Orange Trust Co Taunton Bristol County Trust Co. Summit Citizens Trust Co. Wellesley Hills Wellesley Trust Co. Summit Trust Co. Winchester Winchester Trust Co. Tenafly Tenafly Trust Co. Worcester Worcester County Trust Co. Washington Washington Trust Co. Westfield Peoples Bank & Trust Co. NEW HAMPSHIRE (1 bank) Westfield Trust Co. Conway Carroll County Trust Co. NEW YORK (158 banks) RHODE ISLAND (2 banks) Adams Citizens & Farmers Trust Co. Providence Industrial Trust Co. Albany First Trust Co. State Bank of Albany Union Trust Co. Amityville Bank of Amityville Amsterdam Montgomery County Trust Co. DISTRICT NO. 2 (217 banks) Arcade. Citizens Bank CONNECTICUT! (2 banks) Arlington Vassar Bank Attica Bank of Attica ^ Bridgeport West Side Bank Auburn Auburn Trust Co. Springdale Springdale Bank & Trust Co. Avoca Bank of Avoca Babylon Bank of Babylon NEW JERSEY' (57 banks) Baldwin Peoples State Bank Batavia Genesee Trust Co. Bayonne Bayonne Trust Co, Bayshore South Side Bank Bloomfield Bloomfield Bank & Trust Co. Belmont State Bank of Belmont Community Trust Co. Bingham ton Marine Midland Trust Co. Bogota Bank of Bogota Blasdell Bank of Blasdell Boonton Boon ton Trust Co. Brooklyn (see New York) Bound Brook Bound Brook Trust Co. Buffalo Liberty Bank Carteret Carteret Bank & Trust Co. Manufacturers & Traders Trust Cranford Cranford Trust Co. Co. Dover Dover Trust Co. Marine Trust Co. Exclusive of part of State located in another district. Digitized for FRASER 77 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 ANNUAL REPORT OF BOARD OF GOVERNORS STATE BANK AND TRUST COMPANY MEMBERS Continued DISTRICT NO. 2-Continued DISTRICT NO. 2—Continued NEW YORK—continued NEW YORK—continued Camillus. Camillus Bank Pan American Trust Co. Canandaigua Ontario County Trust Co. Pennsylvania Exchange Bank Canaseraga Canaseraga State Bank Schroder Trust Co. Canisteo First State Bank Trade Bank & Trust Co. Cattaraugus Bank of Cattaraugus United States Trust Co. Center Moriches Center Moriches Bank Niagara Falls .Power City Trust Co. Chatham State Bank of Chatham North Collins Bank of North Collins Chestertown Chester-Schroon-Horicon Bank Northville .Northville Bank Cicero Cicero State Bank Norwood . State Bank of Norwood Clyde Citizens Bank Nyack .Nyack Bank & Trust Co. Clymer Clymer State Bank Ogdensburg .Ogdensburg Trust Co. Cohocton Cohocton State Bank Olean Olean Trust Co. De Ruyter De Ruyter State Bank Oneida Madison County Trust & Deposit Dunkirk Dunkirk Trust Co. Co. East Aurora Erie County Trust Co. Ontario . State Bank of Ontario Ellenburg Depot. .. .State Bank of Ellenburg Orchard Park Bank of Orchard Park Elmira Chemung Canal Trust Co. Oriskany Falls.... First Trust & Deposit Co. Elmira Bank & Trust Co. Ossining .Ossining Trust Co. Endicott Endicott Trust Co. Parish . State Bank of Parish Union Trust Co. Patchogue .Patchogue Citizens Bank & Evans Mills Peoples Bank Trust Co. Farmingdale Bank of Farmingdale Pearl River . State Bank of Pearl River Floral Park Floral Park Bank & Trust Co. Perry . Citizens Bank Forest Hills (see New York) Port Jefferson Bank of Port Jefferson Fredonia Citizens Trust Co. Rensselaer .Rensselaer County Bank & Garden City Garden City Bank & Trust Co. Trust Co. Geneva Geneva Trust Co. Riverhead . Suffolk County Trust Co. Glen Cove Glen Cove Trust Co. Rochester . Central Trust Co. Gloversville Trust Co. of Fulton County Lincoln-Alliance Bank & Trust Great Neck Bank of Great Neck Co. Hamburg Peoples Bank Rockville Centre.. Bank of Rockville Centre Hammondsport Bank of Hammondsport Trust Co. Hicksville Bank of Hicksville Rome Rome Trust Co. Hudson Hudson River Trust Co. Rye Rye Trust Co. Huntington Bank of Huntington & Trust Co. Sag Harbor Peconic Bank Ithaca Tompkins County Trust Co. Salamanca .Salamanca Trust Co. Jamestown Bank of Jamestown Saratoga Springs.. Adirondack Trust Co. Johnson City Workers Trust Co. Sayville .Oystermen's Bank & Trust Co. Katonah Northern Westchester Bank Schenectady Citizens Trust Co. Kenmore State Bank of Kenmore Schenectady Trust Co. Kingston Kingston Trust Co. Schoharie Schoharie County Bank Lackawanna American Bank Scotia .Glenville Bank Lindenhurst Lindenhurst Bank Sea Cliff .State Bank of Sea Cliff Little Falls Herkimer County Trust Co. Smithtown Branch .Bank of Smithtown Liverpool Liverpool Bank Solvay .Solvay Bank Locke Citizens Bank Spring Valley . . Ramapo Trust Co. Locust Valley Matinecock Bank Stony Brook Bank of Suffolk County Lowville Lewis County Trust Co. Syracuse First Trust & Deposit Co. Malone Peoples Trust Co. Syracuse Trust Co. Massena Massena Banking & Trust Co. Tarry town .Washington Irving Trust Co. Mayville State Bank of Mayville Utica .First Bank & Trust Co. Middletown Orange County Trust Co. Warsaw Wyoming County Bank & Trust Millbrook Bank of Millbrook Co. Mineola Nassau County Trust Co. Waterford .Bank of Waterford Monticello Sullivan County Trust Co. Watertown .Northern New York Trust Co. Mount Vernon Fleetwood Bank Westbury Bank of Westbury Trust Co. Mount Vernon Trust Co. Westhampton Beach.Seaside Bank Newburgh Columbus Trust Co. West New Brighton.West New Brighton Bank New York Amalgamated Bank White Plains . Citizens Bank Bankers Trust Co. County Trust Co. Bank of the Manhattan Co. Williamson State Bank of Williamson Bank of New York Worcester .Bank of Worcester Bank of Yorktown Boulevard Bank DISTRICT NO. 3 (80 banks) Bronx County Trust Co. Brooklyn Trust Co. DELAWARE (4 banks) Central Hanover Bank & Trust Wilmington Equitable Trust Co. Co. Industrial Trust Co. Chemical Bank & Trust Co. Security Trust Co. City Bank-Farmers Trust Co. Wilmington Trust Co. Clinton Trust Co. Colonial Trust Co. NEW JERSEY^ (10 banks) Continental Bank & Trust Co. Corn Exchange Bank Trust Co. Bordentown Bordentown Banking Co. Federation Bank & Trust Co. Burlington Burlington City Loan & Trust Fifth Avenue Bank Co. Fulton Trust Co. Camden Camden Trust Co. Guaranty Trust Co. Egg Harbor City... Egg Harbor City Trust Co. Irving Trust Co. Hightstown Hightstown Trust Co. Lawyers Trust Co. Mount Holly Farmers Trust Co. Manufacturers Trust Co. Princeton Princeton Bank & Trust Co. Marine Midland Trust Co. Riverside Riverside Trust Co. Merchants Bank Swedesboro Swedesboro Trust Co. New York Trust Co. Wildwood Union Bank 1 Exclusive of part of State located in another district. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 79 STATE BANK AND TRUST COMPANY MEMBERS—Continued DISTRICT NO. 3 Continued DISTRICT NO. 4—Continued PENNSYLVANIA^ (66 banks) OHIO (137 banks) Allen town Liberty Bank & Trust Co. Ada Liberty Bank Bloomsburg Bloomsburg Bank-Columbia Akron Firestone Park Trust & Savings Trust Co. Bank Carlisle Carlisle Trust Co. First-Central Trust Co. Chester Chester-Cambridge Bank & Alger Alger Savings Bank Trust Co. Alliance Mount Union Bank Clearfield Clearfield Trust Co. Antwerp Antwerp Exchange Bank Danville Montour County Trust Co. Apple Creek Apple Creek Banking Co. Du Bois Union Banking & Trust Co. Archbold Peoples State Bank Co. Easton Easton Trust Co. Arlington Farmers & Merchants Bank Co. East Petersburg East Petersburg State Bank Ashland Ashland Bank & Savings Co. Egypt Farmers Bank Ashville Ashville Banking Co. Glen Rock Peoples Bank Bellevue Union Bank & Savings Co. Harrisburg Central Trust Co. Bellville Farmers Bank Dauphin Deposit Trust Co. Bolivar Bolivar State Bank Co. Hazleton Markle Banking & Trust Co. Bowling Green Bank of Wood County Co. Peoples Savings & Trust Co. Brecksville Brecksville Bank Co. Traders Bank & Trust Co. Bucyrus Farmers & Citizens Bank & Honesdale Wayne County Savings Bank Savings Co. Houtzdale Houtzdale Trust Co. Canal Winchester... .Peoples Bank Co. Huntingdon Grange Trust Co. Canton First Trust & Savings Bank Jenkintown Jenkintown Bank & Trust Co. Geo. D. Harter Bank Jersey Shore Jersey Shore State Bank Peoples Bank Kane Kane Bank & Trust Co. Castalia Castalia Banking Co. Lancaster Farmers Bank & Trust Co. Celina Commercial Bank Co. Northern Bank & Trust Co. Christiansburg Farmers & Merchants Bank Co. Lemoyne Lemoyne Trust Co. Cincinnati Central Trust Co. Lewistown Lewistown Trust Co. Fifty-Third Union Trust Co. Littlestown Littlestown State Bank Peoples Bank & Savings Co. Lock Haven Lock Haven Trust Co. Provident Savings Bank & Trust Lykens Miners Bank & Trust Co. Co- Mahanoy City Merchants Banking Trust Co. Southern Ohio Savings Bank & Middletown Citizens Bank & Trust Co. Trust Co. Farmers Trust Co. Western Bank & Trust Co. Mont Alto Mont Alto State Bank Cleveland Cleveland Trust Co. Mount Carmel Liberty State Bank & Trust Co. Lorain Street Bank Myerstown Myerstown Trust Co. Union Bank of Commerce Co. Nanticoke =. .. .Peoples Bank Columbiana Union Banking Co. New Oxford Farmers & Merchants Bank Columbus Fifth Avenue Savings Bank Co. Newtown Newtown Title & Trust Co. Conneaut Citizens Banking & Savings Co. Norristown Montgomery Trust Co. Conneaut Banking & Trust Co. Norristown-Penn Trust Co. Cortland Cortland Savings & Banking Co. Orrstown Orrstown Bank Coshocton Peoples Bank & Trust Co. Paoli Paoli Bank Crestline Farmers & Citizens State Bank Paradise State Bank of Paradise Croton Croton Bank Co. Philadelphia Fidelity-Philadelphia Trust Co. Danville Commercial & Savings Bank Co. First Trust Co. Delphos Commercial Bank Gimbel Bros. Bank & Trust Co. Peoples Bank Girard Trust Co. Delta Peoples Savings Bank Co. Ninth Bank & Trust Co. East Liverpool Potters Bank & Trust Co. Pennsylvania Co. for Insurances Elmore Bank of Elmore Co. on Lives and Granting An Elyria Elyria Savings & Trust Co. nuities Savings Deposit Bank & Trust Provident Trust Co. Co. Security Bank & Trust Co. Findlay Ohio Bank & Savings Co. Prospect Park Interboro Bank & Trust Co. Fort Recovery Fort Recovery Banking Co. Quakertown Quakertown Trust Co. Freeport Freeport State Bank Reading City Bank & Trust Co. Geneva Geneva Savings & Trust Co. Reading Trust Co. Genoa Genoa Banking Co. Schnecksville Schnecksville State Bank Gibsonburg Home Banking Co. Schuylkill Haven... Schuylkill Haven Trust Co. Gnadenhutten Gnadenhutten Bank Steelton Steelton Bank & Trust Co. Green Springs Commercial Bank Co. Tamaqua Peoples Trust Co. Hillsboro Hillsboro Bank & Savings Co. Temple Temple State Bank Hubbard Hubbard Banking Co. White Haven White Haven Savings Bank Killbuck Killbuck Savings Bank Co. Wilkes-Barre Wilkes-Barre Deposit & Savings Kipton Kipton Bank Co. Bank Leesburg Citizens Bank & Savings Co. Williamsport West Branch Bank & Trust Co. Lodi Lodi State Bank Wyomissing Peoples Trust Co. Logan Farmers & Merchants Bank York Guardian Trust Co. Lorain Central Bank Co. York Trust Co. City Bank Co. Lorain Banking Co. DISTRICT NO. 4 (174 banks) Luckey Exchange Bank KENTUCKY^ (7 banks) Lyons Farmers State Bank Catlettsburg Kentucky-Farmers Bank Madison Citizens Bank Covington. 7. Peoples-Liberty Bank & Trust Mansfield Farmers Savings & Trust Co. Co. Richland Trust Co. Lexington Bank of Commerce Marblehead Marblehead Bank Co. Security Trust Co. Martins Ferry Peoples Savings Bank Co. Paris Bourbon-Agricultural Bank & Mason First-Mason Bank Trust Co. Massillon Ohio-Merchants Trust Co. Peoples Deposit Bank & Trust Maumee State Savings Bank Co. Co. McComb Peoples Banking Co. Richmond State Bank & Trust Co. Middlepoint Middlepoint Banking Co. 1 Exclusive of part of State located in another district. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8o ANNUAL REPORT OF BOARD OF GOVERNORS STATE BANK AND TRUST COMPANY MEMBERS--Continued DISTRICT NO. 4- Continued DISTRICT NO. 4—Continued OHIO—continued PENNSYLVANIA—continued Mia'dletown First American Bank & Trust Co. Peoples-Pittsburgh Trust Co. Minerva Minerva Banking Co. Potter Title & Trust Co. Minerva Savings & Bank Co. St. Clair Deposit Bank Minster Minster State Bank Union Trust Co. Monroeville Farmers & Citizens Banking Co. Somerset Somerset Trust Co. Mount Blanchard.. .Citizens Bank Turtle Creek Turtle Creek Bank & Trust Co. Mount Gilead Peoples Savings Bank Co. Warren Warren Bank & Trust Co. Mount Sterling Sterling State Bank Windber Windber Trust Co. Mount Vernon Knox County Savings Bank Napoleon Community Bank WEST VIRGINIA^ (3 banks) Newark Licking County Bank Newark Trust Co. Sistersville First-Tyler Bank & Trust Co. New Knoxville Peoples Savings Bank Wheeling Security Trust Co. New Lexington Perry County Bank Wheeling Dollar Savings & New Philadelphia.. .Ohio Savings & Trust Co. Trust Co. New Waterford New Waterford Savings & Bank ing Co. DISTRICT NO. 5 (110 banks) Niles Niles Bank Co. Northfield Macedonia-Northfield Banking DISTRICT OF COLUMBIA (8 banks) Co. Norwalk Huron County Banking Co. Washington American Security & Trust Co. Norwood Norwood-Hyde Park Bank & City Bank Trust Co. McLachlen Banking Corp. Oak Harbor Oak Harbor State Bank Co. Munsey Trust Co. Oberlin Oberlin Savings Bank Co. National Savings & Trust Co. Orrville Orrville Savings Bank Security Savings & Commercial Pemberville Citizens Savings Bank Co. Bank Polk Polk State Bank Union Trust Co. Pomeroy Farmers Bank & Savings Co. Washington Loan & Trust Co. Ravenna First Savings Bank Reading Reading Bank MARYLAND (11 banks) Richwood Richwood Banking Co. Rittman Rittman Savings Bank Baltimore Baltimore Commercial Bank Russellville Bank of Russellville Calvert Bank St. Bernard Citizens Bank Fidelity Trust Co. St. Henry St. Henry Bank Maryland Trust Co. St. Marys Home Banking Co. Union Trust Co. of Maryland Sandusky Citizens Banking Co. Cambridge County Trust Co. of Maryland Western Security Bank Ellicott City Commercial & Farmers Bank Shelby Citizens Bank Forest Hill Forest Hill State Bank Shiloh Shiloh Savings Bank Co. Hagerstown Hagerstown Trust Co. Shreve Farmers Bank Salisbury Farmers & Merchants Bank Silverton Silverton Bank Williamsport Savings Bank of Williamsport Strasburg Citizens-State Bank Sylvania Sylvania Savings Bank Co. NORTH CAROLINA (11 banks) Toledo Commerce Guardian Bank Morris Plan Bank Charlotte American Trust Co. Ohio Citizens Trust Co. Concord Citizens Bank & Trust Co. Toledo Trust Co. Durham Fidelity Bank Utica Utica Savings Bank Co. Eden ton Bank of Eden ton Vandalia Vandalia State Bank Marshall Citizens Bank Van Wert Peoples Savings Bank Tryon Tryon Bank & Trust Co. Wakeman Wakeman Bank Co. Wadesboro Bank of Wadesboro Waterville Waterville State Savings Bank Washington Bank of Washington Wellington First Wellington Bank Wilmington Peoples Savings Bank & Trust West Carrollton West Carrollton Bank Co. Woodville State Savings Bank Wilmington Savings & Trust Co. Wooster Commercial Banking & Trust Co. Winston-Salem Wachovia Bank & Trust Co Yellow Springs Miami Deposit Bank Co. Youngstown City Trust & Savings Bank SOUTH CAROLINA (5 banks) Dollar Savings & Trust Co. Bishopville Peoples Bank PENNSYLVANIA^ (27 banks) Camden Commercial Bank Charleston Carolina Savings Bank Aliquippa Woodlawn Trust Co. Chester Commercial Bank Ambridge Economy Bank Hartsville Bank of Hartsville Beaver Beaver Trust Co. Dormont Dormont Savings & Trust Co. VIRGINIA (54 banks) Elizabeth Bank of Elizabeth Erie Security-Peoples Trust Co. Abingdon Farmers Exchange Bank Homestead Monongahela Trust Co. Alberta Bank of Alberta Linesville Farmers & Merchants Bank Amelia Union Bank & Trust Co. McKeesport Peoples City Bank Amherst Farmers & Bank of Amherst Meadville Crawford County Trust Co. Blacksburg Farmers & Merchants Bank New Brighton Beaver County Trust Co. Blackstone Citizens Bank & Trust Co. New Castle Lawrence Savings & Trust Co. Bridgewater Planters Bank Pittsburgh Allegheny Trust Co. Chase City Peoples Bank & Trust Co. Allegheny Valley Bank Chatham Planters Bank & Trust Co. Bank of Ohio Valley Christiansburg Bank of Christiansburg Colonial Trust Co. Coeburn Farmers Exchange Bank Commonwealth Trust Co. Edinburg Farmers Bank Homewood Bank Elkton Bank of Elkton Iron & Glass Dollar Savings Farmville Planters Bank & Trust Co. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 8l STATE BANK AND TRUST COMPANY MEMBERS—Continued DISTRICT NO. 5—Continued DISTRICT NO. 6—Continued VIRGINIA—continued ALABAMA—continued Giade Spring Bank of Glade Spring Montgomery Union Bank & Trust Co. ualifax Bank of Halifax Oneonta Citizens Bank Hillsville Carroll County Bank Pine Apple Bank of Pine Apple Kenbridge Bank of Lunenburg Selma Peoples Bank & Trust Co. Lacrosse. Bank of Lacrosse Thomaston Planters Bank & Trust Co. Lawrenceville Farmers & Merchants Bank York Bank of York Lynchburg Lynchburg Trust & Savings Bank FLORIDA (5 banks) Mathews Farmers Bank McKenney Bank of Dinwiddie Bradenton Manatee River Bank & Trust Co. Montross Peoples Bank Fort Lauderdale Broward Bank & Trust Co. Mount Jackson Peoples Bank Marianna Citizens State Bank Odd Citizens Bank of Poquoson Ocala Commercial Bank & Trust Co. Petersburg Petersburg Savings & American St. Petersburg Union Trust Co. Trust Co. Phoebus Bank of Phoebus GEORGIA (18 banks) Portsmouth Merchants & Farmers Bank Powhatan Bank of Powhatan Adairsville Bank of Adairsville Pulaski Pulaski Trust Co. Atlanta Trust Co. of Georgia Remington State Bank of Remington Augusta Georgia Railroad Bank & Trust Rich Creek Farmers & Merchants Bank Co. Richmond Bank of Commerce & Trusts Bainbridge Citizens Bank & Trust Co. Mechanics & Merchants Bank Blackshear Blackshear Bank Southern Bank & Trust Co. Brunswick Brunswick Bank & Trust Co. State-Planters Bank & Trust Co. Canton Bank of Canton Rural Retreat Peoples Bank Columbus Columbus Bank & Trust Co. Shawsville Bank of Shawsville Merchants & Mechanics Bank Smithfield Bank of Smithfield Commerce Northeastern Banking Co. Merchants & Farmers Bank Lawrenceville Brand Banking Co. South Boston Citizens Bank Millen Bank of Millen South Boston Bank & Trust Co. Monroe Farmers Bank South Hill Citizens Bank Pelham Farmers Bank Stanardsville Bank of Greene Savannah Citizens Bank & Trust Co. Suffolk American Bank & Trust Co. Savannah Bank & Trust Co. Farmers Bank of Nansemond Soperton Bank of Soperton Tazewell Farmers Bank of Clinch Valley Swainsboro Central Bank Vienna Vienna Trust Co. Waynesboro Citizens-Waynesboro Bank & LOUISIANA^ (6 banks) Trust Co. Williamsburg Peninsula Bank & Trust Co. Alexandria Rapides Bank & Trust Co Winchester Union Bank Arabi St. Bernard Bank & Trust Co. Woodstock Shenandoah County Bank & Lake Charles Lake Charles Bank & Trust Co. Trust Co. New Orleans American Bank & Trust Co. Louisiana Savings Bank & Trust WEST VIRGINIA^ (21 banks) Co. Slidell Bank of Slidell Belington Belington Bank Berwind Berwind Bank MISSISSIPPI (2 banks) Buffalo Buffalo Bank Charleston Kanawha Banking & Trust Co. Forest Bank of Forest Kanawha Valley Bank Jackson Deposit Guaranty Bank & Greenville Bank of Greenville Trust Co. Hurricane Putnam County Bank Lewisburg Greenbrier Valley Bank TENNESSEE (7 banks) Martinsburg Peoples Trust Co. Parsons Tucker County Bank Carthage Citizens Bank & Trust Co. Petersburg Potomac Valley Bank Chattanooga American Trust & Banking Co. Quinwood Bank of Quinwood Greeneville Greene County Bank Rainelle Bank of Rainelle Hartsville Bank of Hartsville Romney Bank of Romney Knoxville Commercial Bank & Trust Co. St. Albans Bank of St. Albans Lewisburg Peoples & Union Bank St. Marys Pleasants County Bank Nashville Commerce Union Bank Spencer Traders Trust & Banking Co. Summersville Farmers & Merchants Bank DISTRICT NO. 7 (364 banks) Union Bank of Monroe Wardensville Capon Valley Bank ILLINOIS1 (70 banks) White Sulphur Springs Bank of White Sulphur Springs Argenta . .Gerber State Bank Arthur . .State Bank of Arthur Bloomington . .Corn Belt Bank DISTRICT NO. 6 (54 banks) Peoples Bank ALABAMA (16 banks) Blue Island State Bank of Blue Island Blue Mound State Bank of Blue Mound Aliceville Aliceville Bank & Trust Co. Bushnell Farmers & Merchants State Bank Birmingham Birmingham Trust & Savings Co. Byron Rock River Community Bank Clan ton Peoples Savings Bank Camp Grove Camp Grove State Bank Clayton Bank of Commerce Chadwick Farmers State Bank Columbiana Columbiana Savings Bank Chicago Amalgamated Trust & Savings Cullman Parker Bank & Trust Co. Bank Dothan Dothan Bank & Trust Co. East Side Trust & Savings Bank Eutaw Merchants & Farmers Bank of Harris Trust & Savings Bank Greene County Kaspar-American State Bank Guin Marion County Banking Co. Lake Shore Trust & Savings Marion Junction Marion Junction State Bank Bank 1 Exclusive of part of State located in another district Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82. ANNUAL REPORT OF BOARD OF GOVERNORS STATE BANK AND TRUST COMPANY MEMBERS—Continued DISTRICT NO. 7—Continued DISTRICT NO. 7-Continued ILLINOIS—continued INDIAN A—continued Lake View Trust & Savings Delphi Union Bank & Trust Co. Bank Elkhart First Old State Bank Main State Bank St. Joseph Valley Bank Metropolitan State Bank Etna" Green Etna Bank Metropolitan Trust Co. Fairmount Fairmount State Bank Northern Trust Co. Fowler Fowler State Bank Sears-Community State Bank Franklin Farmers Trust Co. State Bank of Clearing Garrett Garrett State Bank Cowden State Bank of Cowden Gary Gary State Bank Elburn Kane County Bank & Trust Co Gary Trust & Savings Bank Eureka State Bank of Eureka^ Greencastle First-Citizens Bank & Trust Co. Evanston Evanston Trust & Savings Bank Greenfield Greenfield Banking Co. State Bank & Trust Co. Greensburg Union Trust Co. Freeport State Bank of Freeport Hartford City Citizens State Bank Fulton Fulton State Bank Hebron Citizens Bank Galesburg Farmers & Mechanics Bank Hope Hope State Bank Geneva State Bank of Geneva Indianapolis Fletcher Trust Co. Glasford Glasford State Bank Jamestown Citizens State Bank Hillsdale Old Farmers & Merchants State Kokomo Union Bank & Trust Co. Bank La Fayette La Payette Savings Bank Joy Joy State Bank Linden Linden State Bank Lanark Exchange State Bank Logansport Farmers & Merchants State LaSalle LaSalle State Bank Bank Lostant Farmers State Bank Marshall Citizens State Bank McHenry West McHenry State Bank Mohawk Mohawk State Bank Metamora Metamora State Bank Monticello State & Savings Bank Milford Citizens State Bank Montpelier Bank of Montpelier Millbrook Farmers State Bank Muncie Merchants Trust Co. Moline Moline State Trust & Savings Nappanee State Bank of Nappanee Bank Oldenburg Farmers & Merchants State Bank Momence Parish Bank & Trust Co. Parker Parker Banking Co. Morrison. Smith Trust & Savings Bank Pendleton Pendleton Banking Co. Mt. Pulaski Farmers Bank Poland Poland-State Bank Niantic State Bank of Niantic Porter First State Bank Oak Park Oak Park Trust & Savings Bank Reynolds Bank of Reynolds Petersburg Schirding State Bank Rising Sun Rising Sun State Bank Piper City State Bank of Piper City Roachdale Roachdale Bank & Trust Co. Riverdale., First Trust & Savings Bank Saratoga Saratoga State Bank Rochester Rochester State Bank South Bend First Bank & Trust Co. Rock Island State Bank of Rock Island Sweetser Farmers State Bank Rushville Rushville State Bank Tipton.. Farmers Loan & Trust Co. Shannon First State Bank Valparaiso First State Bank Shelbyville Shelby County State Bank Van Buren Van Buren Bank Shelby Loan & Trust Co. Warren Exchange Bank Skokie Niles Center State Bank Warsaw Lake City Bank Springfield Springfield Marine Bank Waterloo Citizens State Bank Thomson Thomson State Bank West College Corner Tinley Park Bremen State Park (College Corner, Tolono Citizens Bank Ohio, P. O.) Farmers State Bank Urbana Busey's State Bank Villa Grove Villa Grove State Bank IOWA (51 banks) Walnut Citizens State Bank Washington Danforth Banking Co. Algona Iowa State Bank Wenona First State Bank Security State Bank Wheaton Gary-Wheaton Bank Auburn Auburn Savings Bank Wheaton Trust & Savings Bank Aurelia First Trust & Savings Bank Wilmette Wilmette State Bank Blencoe Blencoe State Bank Yorkville Farmers State Bank Cherokee Cherokee State Bank Churdan First State Bank Clarinda Citizens State Bank INDIANAi (69 banks) Clear Lake Clear Lake Bank & Trust Co. Amboy State Bank of Amboy Corydon Corydon State Bank Anderson Citizens Banking Co. Davenport Davenport Bank & Trust Co. Andrews State Bank of Andrews Des Moines Bankers Trust Co. Angola Steuben County State Bank Dubuque American Trust & Savings Bank Auburn Auburn State Bank Early Early Savings Bank Avilla Community State Bank Estherville Iowa Trust & Savings Bank Battle Ground Battle Ground State Bank Fairfield Iowa State Bank & Trust Co. Berne First Bank of Berne Fontanelle State Savings Bank Bippus Bippus State Bank Forest City Forest City Bank & Trust Co. Boswell Farmers & Merchants Bank Fort Dodge The State Bank Bourbon First State Bank Fort Madison Fort Madison Savings Bank Brazil Brazil Trust Co. Gladbrook State Bank Bremen Bremen State Bank Glenwood Glenwood State Bank Brookville Peoples Trust Co. Holstein Holstein State Bank Cambridge City Wayne Trust Co. Hull Iowa State Bank Carthage State Bank of Carthage Ida Grove Ida County State Bank Chesterton Chesterton State Bank Jesup. . Farmers State Bank Columbia City Citizens State Bank Keota Security State Bank Farmers Loan & Trust Co. Lineville Lineville State Bank Connersville. Fayette Bank & Trust Co. Lohrvilie Commercial Savings Bank Crawfordsville Elston Bank & Trust Co. Maquoketa. Jackson State Savings Bank Darlington Farmers & Merchants State B ank Mason City United Home Bank & Trust Co. Decatur First State Bank Mondamin Mondamin Savings Bank 1 Exclusive of part of State located in another district. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 83 STATE BANK AND TRUST COMPANY MEMBERS—Continued DISTRICT NO. 7-Continued DISTRICT NO. 7-Continued IOWA--continued M ICHIGAN-^ontinued Monticello Monticello State Bank Gay lord Gaylord State Savings Bank Moorhead Moorhead StatelBank Grand Haven Grand Haven State Bank Muscatine Central State Bank Peoples Savings Bank Muscatine Bank & Trust Co. Grand Rapids Old Kent Bank New Hampton Security State Bank Grandville Community State Bank Newton Jasper County Savings Bank Grant Grant State Bank Osage Home Trust & Savings Bank Greenville Commercial State Savings Bank Ottumwa Fidelity Savings Bank First State Bank Union Bank & Trust Co. Grosse Pointe Grosse Pointe Bank Riceville Riceville State Bank Hamtramck Liberty State Bank Royal Home State Bank Harbor Beach State Bank Sheldon Security State Bank Harbor Springs Emmet County State Bank Shenandoah Security Trust & Savings Bank Hillsdale Hillsdale State Savings Bank Storm Lake Commercial Trust & Savings Holland Holland State Bank Bank Peoples State Bank Security Trust & Savings Bank Holly First State & Savings Bank Strawberry Point... .Union Bank & Trust Co. Howell First State & Savings Bank Templeton Templeton Savings Bank Imlay City Imlay City State Bank Washington Washington State Bank Jackson Jackson City Bank & Trust Co. Williams Williams Savings Bank Jonesville Grosvenor Savings Bank Kingston Kingston State Bank MICHIGANi (132 banks) Lakeyiew Bank of Lakeview Lansing American State Savings Bank Adrian Adrian State Savings Bank Bank of Lansing Commercial Savings Bank Lapeer Lapeer Savings Bank Lenawee County Savings Bank Lawrence Home State Bank Albion Commercial & Savings Bank Lowell State Savings Bank Algonac Algonac Savings Bank Ludington Ludington State Bank Allegan Allegan State Bank Manchester Peoples Bank Alpena. Alpena Savings Bank Union Savings Bank Alto Farmers State Bank Manistee Manistee County Savings Bank Ann Arbor Ann Arbor Savings & Commer Marcellus G. W. Jones Exchange Bank cial Bank Mason Farmers Bank State Savings Bank Merrill Farmers & Merchants State Bank Armada Armada State Bank Midland Chemical State Savings Bank Bay City Bay City Bank Milan Peoples State Bank Peoples Commercial & Savings Montague Farmers State Bank Bank Morrice Morrice State Bank Belleville Peoples State Bank Mount Clemens Mount Clemens Savings Bank Berrien Springs Berrien Springs State Bank Mount Pleasant Exchange Savings Bank Big Rapids Big Rapids Savings Bank Isabella County State Bank Blanchard Blanchard State Bank New Baltimore Citizens State Savings Bank Blissfield Blissfield State Bank New Boston Peoples State Bank Bronson Peoples State Bank New Haven New Haven Savings Bank Brown City Brown City Savings Bank North Branch Pioneer Bank Byron Center Byron Center State Bank Onsted Onsted State Bank Caledonia State Bank of Caledonia Oxford Oxford Savings Bank Capac Capac State Savings Bank Petoskey First State Bank Cass City Cass City State Bank Pigeon Pigeon State Bank Pinney State Bank Pinconning Pinconning State Bank Cassopolis Cass County State Bank Plymouth Plymouth United Savings Bank Charlevoix Charlevoix County State Bank Richmond Macomb County Saving Bank Charlotte Eaton County Savings Bank River Rouge River Rouge Savings Bank Chelsea Chelsea State Bank Romeo Romeo Savings Bank Chesaning Chesaning State Bank St. Clair Commercial & Savings Bank Clare Citizens State Bank St. Johns State Bank of St. Johns Clarkston Clarkston State Bank Saugatuck Fruit Growers State Bank Coloma State Bank of Coloma Sebewaing Farmers & Merchants State Bank Coopersville Coopersville State Bank South Haven Citizens State Bank Corunna Old Corunna State Bank First State Bank Croswell State Bank of Croswell Sparta Sparta State Bank Davison Davison State Bank Spring Lake Spring Lake State Bank Decatur First State Bank Springport Springport State Savings Bank Detroit Commonwealth Bank Traverse City First-Peoples State Bank Detroit Bank Traverse City State Bank United Savings Bank Trenton Trenton State Bank Dexter Dexter Savings Bank Vassar State Bank of Vassar Dundee Monroe County Bank Wayne Wayne State Bank Durand Shiawassee County Bank West Branch State Savings Bank Ecorse Ecorse Savings Bank Whitehall State Bank of Whitehall Farmington Farmington State Bank Williamston Peoples States Bank Fennville Old State Bank Wyandotte Wyandotte Savings Bank Fen ton State Savings Bank Yale Yale State Bank Flint Citizens Commercial & Savings Zeeland Zeeland State Bank Bank Genesee County Savings Bank WISCONSIN^ (42 banks) Merchants & Mechanics Bank Flushing Peoples State Bank Antigo Fidelity Savings Bank Fountain Fountain State Bank Beloit Beloit Savings Bank Frankenmuth Frankenmuth State Bank Beloit State Bank Frankfort State Savings Bank Berlin Farmers & Merchants Bank Fremont Fremont State Bank Burlington Bank of Burlington Old StateBank Chilton Commercial Bank Gagetown State Savings Bank Cudahy Cudahy State Bank Digitized for F1 REAxcSluEsiRve of part of State located in another district. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 4 ANNUAL REPORT OF BOARD OF GOVERNORS STATE BANK AND TRUST COMPANY MEMBERS-Continued DISTRICT NO. 7—Continued DISTRICT NO. 8—Continued WISCONSIN—continued INDIANA—continued De Forest De Forest-Morrisonville Bank Oak town Oaktown Bank Denmark Denmark State Bank Orleans Bank of Orleans Edgerton Tobacco Exchange Bank Richland Lake State Bank Evansville Union Bank & Trust Co. Salem State Bank of Salem Fox Lake State Bank of Fox Lake Sandborn Sandborn Banking Co. Francis Creek State Bank of Francis Creek Scottsburg Scott County State Bank Green Bay Peoples Trust & Savings Bank Green Lake Green Lake State Bank Kaukauna Bank of Kaukauna KENTUCKY^ (11 banks) Kewaunee State Bank of Kewaunee Lake Mills Bank of Lake Mills Bardstown Farmers Bank & Trust Co. Lancaster Lancaster State Bank Campbellsville Citizens Bank & Trust Co. Manitowoc .Manitowoc Savings Bank Clay Farmers Bank Markesan Markesan State Bank Danville Boyle Bank & Trust Co. Mayville State Bank of Mayville Hartford Citizens Bank Milwaukee American State Bank Hopkinsville Planters Bank & Trust Co. Commonwealth Mutual Savings Louisville Kentucky Title Trust Co. Bank Lincoln Bank & Trust Co. Home Savings Bank Louisville Trust Co. Marshall & llsley Bank Middletown Bank of Middletown Northern Bank Owensboro First-Owensboro Bank & Trust Park Savings Bank Co. Teutonia Avenue State Bank West Side Bank MISSOURI^ (64 banks) Platteville State Bank of Platteville Sauk City Farmers & Citizens Bank Arnold Bank of Maxville Sheboygan Bank of Sheboygan California Farmers & Traders Bank Citizens State Bank Camden ton Camden County Bank South Milwaukee. . .Home State Bank Carrollton Carroll County Trust Co. Sturgeon Bay Bank of Sturgeon Bay Clayton St. Louis County Bank Viroqua State Bank of Viroqua Clinton Union State Bank Waupaca Farmers State Bank Crane Bank of Crane Waupun State Bank of Waupun Cuba Peoples Bank Wausau Citizens State Bank Eldon Bank of Eldon West Allis Milwaukee County Bank Elsberry Bank of Lincoln County Whitewater First Citizens State Bank Fair Play Citizens State Bank Farmington United Bank DISTRICT NO. 8 (118 banks) Fen ton Farmers & Merchants Bank Fulton Callaway Bank ARKANSAS (9 banks) Glasgow Glasgow Savings Bank Hannibal Farmers & Merchants Bank & Arkadelphia Elk Horn Bank & Trust Co. Trust Co. Batesville Citizens Bank & Trust Co. Keytesville Bank of Keytesville Blytheville .Farmers Bank & Trust Co. Lancaster Schuyler County State Bank Camden .Merchants & Planters Bank Lebanon State Bank of Lebanon Fordyce Fordyce Bank & Trust Co. State Savings Bank Little Rock W. B. Worthen Co., Bankers Luxemburg Lemay Bank & Trust Co. Russellville Bank of Russellville Maplewood Maplewood Bank & Trust Co. Peoples Exchange Bank Peoples State Bank Waldron Bank of Waldron Marshall Wood & Huston Bank Memphis Bank of Memphis ILLINOIS* (26 banks) Moberly City Bank & Trust Co. Mechanics Bank & Trust Co. Breese State Bank of Breese Monroe City Monroe City Bank Cairo First Bank & Trust Co. Normandy Normandy State Bank Clay City Clay City Banking Co. Paris Paris Savings Bank. Dongola First State Bank Pine Lawn Pine Lawn Bank & Trust Co. Dupo Dupo State Savings Bank Polo Farmers Bank DuQuoin DuQuoin State Bank St. Charles St. Charles Savings Bank East St. Louis Union Trust Co. Union Savings Bank Edwardsville Bank of Edwardsville Ste. Genevieve Bank of Ste. Genevieve Effingham Effingham State Bank St. Louis Baden Bank Eldorado C. P. Burnett & Sons, Bankers Bremen Bank & Trust Co. Farina State Bank of Farina Cass Bank & Trust Co. Hillsboro Montgomery County Bank Chippewa Trust Co. Hoyleton Hoyleton State & Savings Bank Easton-Taylor Trust Co. Jacksonville Elliott State Bank Jefferson Bank & Trust Co. Johnston City Johnston City State Bank Jefferson-Gravois Bank Keyesport State Bank of Keyesport Lindell Trust Co. Litchfield Litchfield Bank & Trust Co. Manchester Bank Mounds First State Bank Manufacturers Bank & Trust Co. Olmsted First State Bank Mercantile-Commerce Bank & Red Bud First State Bank Trust Co. Richview Richview State Bank Mississippi Valley Trust Co. Ridgway Gallatin County Bank Mound City Trust Co. St. Elmo Fayette County Bank North St. Louis Trust Co. St. Peter First State Bank Plaza Bank Teutopolis Teutopolis State Bank Southern Commercial & Savings Vandalia Farmers & Merchants Bank Bank Southwest Bank INDIANA* (8 banks) Tower Grove Bank & Trust Co. United Bank & Trust Co. Bloomfield Bloomfield State Bank St. Louis County. . .Gravois Bank Charlestown First Bank of Charles town Sedalia Sedalia Bank & Trust Co. Digitized for 1 F ERxAclSusEivRe of part of State located in another district. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 85 STATE BANK AND TRUST COMPANY MEMBERS—Continued DISTRICT NO. 8—Continued . DISTRICT NO. 9—Cont inued MISSOURI-continued SOUTH DAKOTA-continued Springfield Southern^Missouri Trust Co. Belle Fourche Bank of Belle Fourche Steelville Community Bank Belvidere Belvidere State Bank Sweet Springs Chemical Bank Buffalo First State Bank Vandalia Vandalia State Bank Custer Custer County Bank Versailles Bank of Versailles Faith Farmers State Bank Vienna Maries County Bank Flandreau Farmers State Bank Washington Franklin County Bank Freeman Merchants State Bank Webster Groves Webster Groves Trust Co. Fulton Fulton State Bank Huron Farmers & Merchants Bank DISTRICT NO. 9 (88 banks) Madison ..Security Bank & Trust Co. Miller Hand County State Bank MICHIGAN1 (14 banks) Mitchell Commercial Trust & Savings Bank Bark River Bark River State Bank Mobridge Citizens Bank Escanaba State Savings Bank Onida Onida Bank Ewen State Bank of Ewen Presho Farmers & Merchants State Bank Gladstone Gladstone State Savings Bank Sioux Falls Union Savings Bank Gwinn Gwinn State Savings Bank Sturgis Bear Butte Valley Bank Iron River Miners' State Bank Toronto Bank of Toronto L'Anse Commercial Bank Vermillion Citizens Bank Manistique State Savings Bank Webster Security Bank Menominee Commercial Bank Woonsocket Sanborn County Bank Newberry Newberry State Bank Ontonagon Citizens State Bank Sault Ste. Marie Central Savings Bank WISCONSIN* (5 banks) Sault Savings Bank South Range South Range State Bank Boyceville Bank of Boyceville Glenwood City First State Bank MINNESOTA (21 banks) Menomonie Kraft State Bank Rhinelander Merchants State Bank Caledonia Sprague State Bank Tomahawk Bradley Bank Cannon Falls Security State Bank Chatfield Root River State Bank DISTRICT NO. 10 (91 banks) Clinton Clinton State Bank Hawley State Bank of Hawley COLORADO (15 banks) Houston Security State Bank Lakefield Farmers State Bank Brighton Brighton State Bank Madelia Farmers State Bank Craig Moffatt County State Bank Minneapolis Fidelity State Bank Del Norte Rio Grande County Bank Owatonna Security Bank & Trust Co. Delta Colorado Bank & Trust Co. Plain view Peoples State Bank. Denver Central Savings Bank & Trust Rockville State Bank of Rockville Co. Rushmore First State Bank Internatonal Trust Co. St. Cloud Zapp State Bank Eaton Eaton Bank Sleepy Eye State Bank of Sleepy Eye Fort Morgan Farmers State Bank Springfield Farmers & Merchants State Bank Grand Junction United States Bank State Bank of Springfield Gunnison Gunnison Bank & Trust Co. Wadena Wadena County State Bank Haxtun Haxtun State Bank Welcome Welcome State Bank La Junta Colorado Savings & Trust Co. West Concord Farmers State Bank Sterling Commercial Savings Bank Winona Merchants Bank Security State Bank Yuma Farmers State Bank MONTANA (25 banks) KANSAS (29 banks) Anaconda Daly Bank & Trust Co. Belt. Belt Valley Bank Abilene Citizens Bank Big Timber Citizens Bank & Trust Co. Augusta Prairie State Bank Billings Security Trust & Savings Bank Burns Burns State Bank Bozeman Gallatin Trust & Savings Bank Caldwell Stock Exchange Bank Security Bank & Trust Co. Eldorado Citizens State Bank Broadus Powder River County Bank Goodland Goodland State Bank Butte Metals Bank & Trust Co. Great Bend American State Bank Cascade Stockmens Bank Hiawatha Morrill & Janes Bank Choteau Citizens State Bank Hill City Farmers & Merchants Bank Columbus Yellowstone Bank Horton Home State Bank Deer Lodge Deer Lodge Bank & Trust Co. Hoxie Hoxie State Bank Denton Farmers State Bank Hutchinson Hutchinson State Bank Fromberg Clarks Fork Valley Bank Kansas City Riverview State Bank Glasgow Farmers-Stockgrowers Bank Kinsley Kinsley Bank Great Falls Montana Bank & Trust Co. Liberal Citizens State Bank Helena Union Bank & Trust Co. Luray Peoples State Bank Laurel Yellowstone Bank Ness City First State Bank Libby First State Bank Norton First State Bank Richey First State Bank Oakley Farmers State Bank Ronan Ronan State Bank Osage City Citizens State Bank Terry State Bank of Terry Pratt Peoples Bank Townsend State Bank of Townsend Rossville Peoples State Bank Victor Farmers State Bank Sedan Sedan State Bank Worden Farmers State Bank St. Marys St. Marys State Bank Sylvan Grove Sylvan State Bank SOUTH DAKOTA (23 banks) Tonganoxie First State Bank Topeka Fidelity Savings State Bank Alcester State Bank of Alcester Wakefield Farmers & Merchants State Bank Arlington Citizens State Bank Winfield The State Bank Digitized for F 1 REAxcSluEsiRve of part of State located in another district. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 ANNUAL REPORT OF BOARD OF GOVERNORS STATE BANK AND TRUST COMPANY MEMBERS—Continued DISTRICT NO. 10—Continued DISTRICT NO. 11—Continued MISSOURI (12 banks) TEXAS (86 banks) Albany Gentry County Bank Aransas Pass First State Bank Carthage Bank of Carthage Bandera First State Bank Craig Bank of Craig Bangs First State Bank Kansas City Commerce Trust Co. Bay City Bay City Bank & Trust Co. Mercantile Home Bank & Trust Beaumont Security State Bank & Trust Co. Co. Beeville State Bank & Trust Co. Merchants Bank Brackettville First State Bank King City First State Bank Bremond First State Bank Lamar Barton County State Bank Brenham Washington County State Bank Rich Hill Security Bank Brownfield Brownfield State Bank St. Joseph Empire Trust Co. Bryan First State Bank & Trust Co. South St. Joseph....First St. Joseph Stock Yards Celina First State Bank Bank Clarendon Farmers State Bank Stanberry Farmers State Bank Cleveland Farmers State Bank Clifton Farmers State Bank NEBRASKA (14 banks) Crosby Crosby State Bank Crowell Crowell State Bank Alma Harlan County Bank Cuero Farmers State Bank & Trust Co. Bancroft Citizens Bank Dalhart Citizens State Bank Blair Washington County Bank Dallas Liberty State Bank Bluehill Commercial Bank De Kalb State Bank of De Kalb Chappell Deuel County State Bank Del Rio Del Rio Bank & Trust Co. Hartington Bank of Hartington Dodson First State Bank Lexington Farmers State Bank Dumas First State Bank North Platte McDonald State Bank East Bernard Union State Bank Pawnee City Citizens State Bank Eden Eden State Bank Scribner Farmers State Bank Ferris Farmers & Merchants State Bank Stromsburg Stromsburg Bank Forney Forney State Bank Valley Bank of Valley Franklin First State Bank Wahoo ;.. .Wahoo State Bank Fredericksburg Security State Bank Wallace Farmers State Bank Gatesville Guaranty Bank & Trust Co. Gladewater First State Bank NEW MEXICO1 (2 banks) Gonzales Gonzales State Bank Granger First State Bank Aztec Citizens Bank Hamilton Hamilton Bank & Trust Co. Taos First State Bank Houston Citizens State Bank Guardian Trust Co. OKLAHOMA! (10 banks) Iola Iola State Bank Kerrville First State Bank Ada Oklahoma State Bank Knox City Citizens State Bank Canton Bank of Canton Kosse First State Bank Eldorado First State Bank Ladonia Farmers & Merchants State Bank Fairview Fairview State Bank Llano Moore State Bank Garber Bank of Garber Loraine First State Bank Medford Grant County Bank Lorenzo Lorenzo State Bank Okarche First Bank of Okarche. Madisonville Farmers State Bank Purcell First State Bank Marlin First State Bank Stroud First State Bank Matador First State Bank Woodward Bank of Woodward Mathis First State Bank Maypearl First State Bank WYOMING (9 banks) McAllen City State Bank & Trust Co. Monahans First State Bank Evanston Stockgrowers Bank Mount Pleasant Guaranty Bond State Bank Lusk Lusk State Bank Muleshoe Muleshoe State Bank Mountain View Uinta County State Bank Pearsall Security State Bank Newcastle First State Bank Ralls Security State Bank & Trust Co. Saratoga Saratoga State Bank Rankin First State Bank Sundance Sundance State Bank Richardson Citizens State Bank Wheatland State Bank of Wheatland Robert Lee Robert Lee State Bank Stock Growers Bank Roby Citizens State Bank Worland Farmers State Bank Rocksprings First State Bank Roscoe Roscoe State Bank DISTRICT NO. 11 (93 banks) Royse City Citizens State Bank Rusk Farmers & Merchants State ARIZONA^ (1 bank) Bank & Trust Co. Tucson Southern Arizona Bank & Trust San Marcos State Bank & Trust Co. Schertz Schertz State Bank Co. Seminole Seminole State Bank Shamrock Farmers & Merchants State Bank LOUISIANA1 (2 banks) Shiro Farmers State Bank Silsbee Silsbee State Bank Minden Minden Bank & Trust Co. Sin ton Commercial State Bank Shreveport Continental-American Bank & Spearman First State Bank Trust Co. Spur Spur Security Bank Sulphur Springs Sulphur Springs State Bank NEW MEXICO! (3 banks) Taft First State Bank Talpha First State Bank Carlsbad American Bank Deming Mimbres Valley Bank Temple Farmers State Bank Logan McFarland Bros. Bank Thorndale Thorndale State Bank Tomball Guaranty Bond State Bank OKLAHOMA! (1 bank) Trent Home State Bank Wellington Wellington State Bank Atoka Atoka State Bank West Columbia First Capitol State Bank 1 Exclusive of part of State located in another district. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 87 STATE BANK AND TRUST 1PANY MEMBERS—Continued DISTRICT NO. 11—Continued DISTRICT NO. 12—Continued TEXAS—continued OREGON (6 banks) Wharton Security Bank & Trust Co. Albany Bank of Albany Wharton Bank & Trust Co. Beaverton First Security Bank Winters Winters State Bank Dallas Dallas City Bank York town First State Bank Halsey Halsey State Bank Myrtle Point Security Bank DISTRICT NO. 12 (70 banks) Oakland E.G. Young & Co. Bank ARIZONA* (1 bank) Buckeye Buckeye Valley Bank UTAH (21 banks) Brigham State Security Bank CALIFORNIA (17 banks) Cedar City Bank of Southern Utah Auburn Placer County Bank Ephraim Bank of Ephraim Carmel Bank of Carmel Gunnison Gunnison Valley Bank Fairfield Solano County Bank Heber Commercial Bank of Heber City Lodi Farmers & Merchants Bank Helper Helper State Bank Long Beach Farmers & Merchants Bank Kaysville Barnes Banking Co. Los Angeles California Bank Logan Cache Valley Banking Co. California Trust Co. Nephi Commercial Bank Union Bank & Trust Co. Ogden Commercial Security Bank Newman Bank of Newman Price Carbon Emery Bank Oakland Bank of Commerce Provo Farmers & Merchants Bank Pasadena Citizens Commercial Trust & Salina First State Bank Savings Bank Salt Lake City Tracy Loan & Trust Co. First Trust & Savings Bank Utah Savings & Trust Co. Salinas Monterey County Trust & Sav Walker Bank & Trust Co. ings Bank Spanish Fork Bank of Spanish Fork San Francisco American Trust Co. Commercial Bank Wells Fargo Bank & Union Springville Springville Banking Co. Trust Co. Vernal Bank of Vernal San Rafael Bank of San Rafael Uintah State Bank Santa Paula Citizens State Bank WASHINGTON (14 banks) IDAHO (9 banks) Aberdeen Bank of Aberdeen Almira Almira State Bank American Falls American Falls Bank Cashmere Cashmere Valley Bank Arco Butte County Bank Coulee City Security State Bank Hazel ton Hazel ton State Bank Kelso Cowlitz Valley Bank Malad City J. N. Ireland & Co., Bankers Lacrosse First State Bank Orofino Bank of Oroiino Puyallup Citizens State Bank Richfield. First State Bank Ridgefield Ridgefield State Bank Soda Springs Largilliere Co., Bankers Ritzville Ritzville State Bank Twin Falls Twin Falls Bank & Trust Co. Rockford Farmers & Merchants Bank Seattle Seattle Trust & Savings Bank Selah SelahState Bank NEVADA (2 banks) Spokane Washington Trust Co. Elko Nevada Bank of Commerce Union town Farmers State Bank Pioche Bank of Pioche Wilbur State Bank of Wilbur Exclusive of part of State located in another district. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 ANNUAL REPORT OF BOARD OF GOVERNORS DESCRIPTION OF FEDERAL RESERVE DISTRICTS Land area1 Popula Federal Reserve district (square tion April miles) 1, 1940 No. 1—Boston 62,573 8,018,906 No. 2—New York 52,153 17,129,265 No. 3—Philadelphia 37,023 7,777,910 No. 4—Cleveland 74,027 11,809,528 No. 5—Richmond 152,471 12,330,219 No. 6—Atlanta 247,778 12,597,347 No. 7—Chicago 190,446 19,406,389 No. 8—St. Louis 195,902 10,187,405 No. 9—Minneapolis 412,304 5,542,966 No. 10—Kansas City 480,537 7,855,397 No. 11—Dallas 386,447 7,733,748 No 12—San Francisco 685,438 11,280,195 Total 2,977,099 131,669,275 FEDERAL RESERVE DISTRICTS DISTRICT NO. 1—BOSTON 62,573 8,018,906 Connecticut (excluding Fairfield County) 4,266 1,290,858 Maine 31,040 847,226 Massachusetts 7,907 4,316,721 New Hampshire 9,024 491,524 Rhode Island 1,058 713,346 Vermont 9,278 359,231 DISTRICT NO. 2—NEW YORK 52,153 17,129,265 Connecticut (Fairfield County) 633 418,384 New Jersey 3,591 3,231,739 Counties of— Bergen Hunterdon Morris Sussex Essex Middlesex Passaic Union Hudson Monmouth Somerset Warren New York 13,479,142 DISTRICT NO. 3—PHILADELPHIA 37,023 7,777,910 Delaware 1,978 266,505 New Jersey 3,931 928,426 Counties of— Atlantic Cape May Gloucester Ocean Burlington Cumberland Mercer Salem Camden Pennsylvania (eastern part) 31,114 Counties of— Adams Clinton Lebanon Philadelphia Bedford Columbia Lehigh Pike Berks Cumberland Luzerne Potter Blair Dauphin Lycoming Schuylkill Bradford Delaware McKean Snyder Bucks Elk t Mifflin Sullivan Cambria Franklin Monroe Susquehanna Cameron Fulton Montgomery Tioga Carbon Huntingdon Montour Union Center Juniata Northampton Wayne Chester Lackawanna Northumberland Wyoming Clearfield Lancaster Perry York DISTRICT NO. 4—CLEVELAND 74,027 11,809,528 Kentucky (eastern part). 17,772 1,379,425 Counties of— Bath Elliott Jessamine Lincoln Bell Estill Johnson McCreary Boone Fayette Kenton Madison Bourbon Fleming Knott Magoffin Boyd Floyd Knox Martin Bracken Garrard Laurel Mason Breathitt Grant Lawrence Menifee Campbell Greenup Lee Montgomery Carter Harlan Leslie Morgan Clark Harrison Letcher Nicholas Clay Jackson Lewis Owsley _1 Data lor land areas of States were recomputed in preparation for the 1940 Census and, therefore, differ some what from those shbwn in issues previous to 1940. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

89 FEDERAL RESERVE SYSTEM DESCRIPTION OF FEDERAL RESERVE DISTRICTS—Continued Land area1 Population Federal Reserve district (square April 1, miles) 1940 DISTRICT NO. 4—CLEVELAND—Continued Kentucky (eastern part) Counties of—Continued Pendleton Powell Rockcastle Whitley Perry Pulaski Rowan Wolfe Pike Robertson Scott Woodford Ohio . 41,122 6,907,612 Pennsylvania (western part) 13,931 3,317,201 Counties of— Allegheny Crawford Indiana Venango Armstrong Erie Jefferson Warren Beaver Fayette Lawrence Washington Butler Forest Mercer Westmoreland Clarion^ Greene Somerset West Virginia (northern part) 1,202 205,290 Counties of— Brooke Marshall Tyler Hancock Ohio Wetzel DISTRICT NO. 5—RICHMOND 152,471 12,330,219 District of Columbia 61 663,091 Maryland.. ._ 9,887 1,821,244 North Carolina 49,142 3,571,623 South Carolina 30,594 1,899,804 Virginia. 39,899 2,677,773 West Virginia (southern part) 22,888 1,696,684 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 Fayette McDowell Preston Wood Gilmer Marion Putnam Wyoming Grant Mason Raleigh Greenbrier Mercer Randolph Hampshire Mineral Ritchie DISTRICT NO. 6—ATLANTA 247,778 12,597,347 Alabama 51,078 2,832,961 Florida 54,262 1,897,414 Georgia 58,518 3,123,723 Louisiana (southern part) 26,630 1,611,595 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 West Baton Calcasieu La Fourche Baptist Rouge Cameron Livingston St. Landry West Feliciana East Baton Orleans St. Martin Rouge Plaquemines St. Mary East Feliciana Pointe Coupee St. Tammany Mississippi (southern part) 1,073,748 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 part) 2,057,906 Counties of— Anderson Clay Grainger Jackson Bedford Cocke Greene Jefferson Bledsoe Coffee Grundy Johnson Blount Cumberland Hamblen Knox Bradley Davidson Hamilton Lawrence Campbell De Kalb Hancock Lewis Cannon Dickson Hawkins Lincoln Carter Fentress Hickman Loudon Cheatham Franklin Houston McMinn Claiborne Giles Humphreys Macon Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

9o ANNUAL REPORT OF BOARD OF GOVERNORS DESCRIPTION OF FEDERAL RESERVE DISTRICTS—Continued Land area Population Federal Reserve district (square April 1, miles) 1940 DISTRICT NO. 6—ATLANTA—Continued Tennessee (eastern part) Counties of--Continued Marion Perry Sequatchie Van Buren Marshall Pickett Sevier Warren Maury Polk Smith Washington Meigs Putnam Stewart Wayne Monroe Rhea Sullivan White Montgomery Roane Sumner Williamson Moore Robertson Trousdale Wilson Morgan Rutherford Unicoi Overton Scott Union DISTRICT NO. 7—CHI CAGO 190,446 19,406,389 Illinois (northern pa rt) 35,333 6,591,832 Counties of- Boone Ford Livingston Rock Island Bureau Fulton Logan Sangamon Carroll Grundy McDonough Schuyler Cass Hancock McHenry 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 Woodford Du Page La Salle Piatt Edgar Lee Putnam Indiana (northern pa rt) 26,779 2,788,910 Counties of - Adams Fountain La Porte 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 Vermillion Clinton Jasper Ohio Vigo Dearborn Jay Owen Wabash Decatur Jennings Parke Warren De Kalb Johnson Porter Wayne Delaware Kosciusko Pulaski Wells Elkhart Lagrange Putnam White Fayette Lake Randolph Whitley 55,986 2,538,268 Michigan (southern i 5art) 40,484 4,932,562 Counties of— Alcona Eaton Lapeer Ogemaw Allegan Emmet Leelanau Osceola Alpena Genesee Lenawee Oscoda Antrim Gladwin Livingston Otsego Arenac Grand Traverse Macomb Ottawa Barry Gratiot Manistee Presque Isle Bay Hillsdale Mason Roscommon Benzie Huron Mecosta Saginaw Berrien Ingham Midland St. Clair Branch Ionia Missaukee St. Joseph Calhoun Iosco Monroe Sanilac Cass Isabella Montcalm Shiawassee Charlevoix Jackson Montmorency Tuscola Cheboygan Kalamazoo Muskegon Van Buren Clare Kalkaska Newaygo Washtenaw Clinton Kent Oakland Wayne Crawford Lake Oceana Wexford Wisconsin (southern narf") 31,864 2,554,817 Counties of— Adams Door Juneau Marquette Brown Fond du Lac Kenosha Milwaukee Calumet Grant Kewaunee Monroe Clark Green Lafayette Oconto Columbia Green Lake Langlade Outagamie Crawford Iowa Manitowoc Ozaukee Dane Jackson Marathon Portage Dodge Jefferson Marinette Racine Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EEDERAL RESERVE SYSTEM 91 DESCRIPTION OF FEDERAL RESERVE DISTRICTS-Continued Land area Population Federal Reserve district (square April 1, miles) DISTRICT NO. 7—CHICAGO—Continued Wisconsin (southern part) Counties of—Continued Richland Sheboygan Waukesha Wood Rock Vernon Waupaca Sauk Walworth Waushara Shawano Washington Winnebago DISTRICT NO. 8—ST. LOUIS 195,902 10,187,405 Arkansas 52,725 1,949,387 Illinois (southern part) 20,613 1,305,409 Counties of— Adams Franklin Macoupin Randolph Alexander Gallatin Madison Richland Bond Greene Marion St. Clair Brown Hamilton Massac Saline Calhoun Hardin Monroe Scott Clay Jackson Montgomery Union Clinton Jasper Morgan Wabash Crawford Jefferson Perry Washington Edwards Jersey Pike Wayne Effingham Johnson Pope White Fayette Lawrence Pulaski Williamson Indiana (southern part) 9,399 638,886 Counties of— Clark Greene Martin Spencer Crawford Harrison Orange Sullivan Daviess Jackson Perry Switzerland Dubois Jefferson Pike Vanderburg Floyd Knox Posey Warrick Gibson Lawrence Scott Washington Kentucky (western part) 22,337 1,466,202 Counties of— Adair Crittenden Hopkins Ohio Allen Cumberland Jefferson Oldham Anderson Daviess Larue Owen Ballard Edmonson Livingston Russell Barren Franklip Logan Shelby Boyle _ Fulton Lyon Simpson Breckinridge Gallatin McCracken Spencer Bullitt Graves McLean Taylor Butler Grayson Marion Todd Caldwell Green 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 Mississippi (northern part) 21,328 1,110,048 Counties of— Alcorn De Soto Monroe Tate Attala Grenada Montgomery Tippah Benton Holmes Noxubee Tishomingo Bolivar Humphreys Oktibbeha Tunica Calhoun Itawamba Panola Union Carroll Lafayette Pontotoc Washington Chickasaw Lee Prentiss Webster Choctaw Leflore Quitman Winston Clay Lowndes Sunflower Yalobusha Coahoma Marshall Tallahatchie Missouri (eastern part) 58,737 2,859,538 Counties of— Adair Clark Hickory Maries Audrain Cole Howard Marion Barry Cooper Howell Mercer Benton Crawford Iron Miller Bollinger Dade Jefferson Mississippi Boone Dallas Johnson Moniteau Butler Daviess Knox Monroe Caldwell Dent Laclede Montgomery Callaway Douglas Lafayette Morgan Camden Dunklin Lawrence New Madrid Cape Girardeau Franklin Lewis Oregon Carroll Gasconade Lincoln Osage Carter Greene Linn Ozark Cedar Grundy Livingston Pemiscot Chariton Harrison Macon Perry Christian Henry Madison Pettis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OfL ANNUAL REPORT OF BOARD OF GOVERNORS DESCRIPTION OF FEDERAL RESERVE DISTRICTS-Continued Land area Population Federal Reserve district (square April 1, miles) 1940 DISTRICT NO. 8-ST. LOUIS-Continued Missouri (eastern part) Counties of—Continued Phelps Reynolds Saline Sullivan Pike Ripley Schuyler Taney Polk St. Charles Scotland Texas Pulaski St. Clair Scott Warren Putnam St. Francois Shannon Washington Ralls St. Louis Shelby Wayne Randolph St. Louis City Stoddard Webster Ray Ste. Genevieve Stone Wright Tennessee (western part) 10,763 857,935 Counties of— Benton Fayette Henry Shelby Carroll Gibson Lake Tipton Chester Hardeman Lauderdale Weakley Crockett Hardin McNairy Decatur Haywood Madison Dyer Henderson Obion DISTRICT NO. 9-MINNEAPOLIS 412,304 5,542,966 Michigan (northern part) Counties of— Alger Dickinson Keweenaw Menominee Baraga Gogebic Luce Ontonagon Chippewa Houghton Mackinac Schoolcraft Delta Iron Marquette Minnesota 80,009 2,792,300 Montana 146,316 559,456 North Dakota 70,054 641,935 South Dakota 76,536 642,961 Wisconsin (northern part) 22,851 582,770 Counties of— Ashland Dunn Oneida Sawyer Barron Eau Claire Pepin Taylor Bayfield Florence Pierce Trempealeau Buffalo Forest Polk Vilas Burnett Iron Price Washburn Chippewa La Crosse Rusk Douglas Lincoln St. Croix DISTRICT NO. 10—KANSAS CITY 480,537 Colorado 103,967 1,123,296 Kansas 82,113 1,801,028 Missouri (western part) 10,533 925,126 Counties of— Andrew Cass Holt Nodaway Atchison Clay Jackson Platte Barton Clinton Jasper Vernon Bates De Kalb McDonald Worth Buchanan Gentry Newton Nebraska 76,653 1,315,834 New Mexico (northern part) 48,045 290,074 Counties of— Bernalillo Mora San Miguel Valencia Colfax Rio Arriba Santa Fe Harding Sandoval Taos McKinley San Juan Union Oklahoma (northwestern part) 61,720 2,149,297 Counties of— Adair Ellis Logan Pontotoc Alfalfa Garfield Love Pottawatomie Beaver Garvin McClain Roger Mills Beckham Grady Mcintosh Rogers Blaine 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 La Flore Payne Dewey Lincoln Pittsburg Wyoming 97,506 250,742 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 93 DESCRIPTION OF FEDERAL RESERVE DISTRICTS—Continued Land area Population Federal Reserve district (square April 1, miles) 1940 DISTRICT NO. 11—DALLAS 7,733,748 Arizona (southeastern part) 23,227 137,758 Counties of— Cochise Greenlee Pima Santa Cruz Graham Louisiana (northern part) 18,547 752,285 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 Winn Claiborne La Salle Richland Concordia Lincoln Sabine New Mexico (southern part) 73,466 241,744 Counties of— Catron Eddy Lincoln Sierra Chaves Grant Luna Socorro Curry Guadalupe Otero Torrance De Baca Hidalgo Quay Dona Ana Lea m Roosevelt Oklahoma (southeastern part) " 7,563 187,137 Counties of— Atoka Choctaw Johnston Marshall Bryan Coal McCurtain Pushmataha Texas 263,644 6,414,824 DISTRICT NO. 12—SAN FRANCISCO 685,438 11,280,195 Arizona (northwestern part) 90,353 361,503 Counties of— Apache Maricopa Navajo Yavapai Coconino Mohave Pinal Yuma Gila California 156,803 6,907,387 Idaho 82,808 524,873 Nevada 109,802 110,247 Oregon 96,349 1,089,684 Utah 82,346 550,310 Washington 66,977 1,736,191 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

94 ANNUAL REPORT OF BOARD OF GOVERNORS FEDERAL RESERVE BRANCH TERRITORIES [December 31, 1941] BUFFALO BRANCH (district No. 2) —The 10 most westerly counties of New York State, as follows: Monroe Orleans Allegany Wyoming Chautauqua Genesee Erie Cattaraugus Livingston Niagara CINCINNATI BRANCH (district No 4).- -That part of Kentucky in Federal Reserve district No. 4, and the following counties in southern Ohio: Adams Clermont Greene Meigs Ross Athens Clinton Hamilton Miami Scioto Brown Darke Highland Montgomery Vinton Butler Fayette Jackson Pike Warren Clark Gallia Lawrence Preble Washington PITTSBURGH BRANCH (district No. 4).- -Those portions of the States of Pennsylvania and West Virginia included in Federal Reserve district No. 4. BALTIMORE BRANCH (district No. 5).—The State of Maryland and the following counties of West Virginia: Barbour Grant Lewis Pendleton Taylor Berkeley Hampshire Marion Pleasants Tucker Braxton Hardy Mineral Preston Upshur Calhoun Harrison Monongalia Randolph Webster Doddridge Jackson Morgan Ritchie Wirt Gilmer Jefferson Nicholas Roane Wood RLOTTE BRANCH (district No 5).— The following counties in the States of North Carolina and South Ca NORTH CAROLINA Alamance Catawba Guilford Mecklenburg Stanly Alexander Chatham Haywood Mitchell Stokes Alleghany Cherokee Henderson Montgomery Surry Anson Clay Iredell Moore Swain Ashe Cleveland Jackson Polk Transylvania Avery Davidson Lee Randolph Union Buncombe Davie Lincoln Richmond Watauga Burke Forsyth Macon Rockingham Wilkes Cabarrus Gaston Madison Rowan Yadkin Caldwell Graham McDowell Rutherford Yancey SOUTH CAROLINA Abbeville Edgefield Lancaster Newberry Saluda Aiken Fairfield Laurens Oconee Spartanburg Anderson Greenville Lexington Pickens Union Cherokee Greenwood McCormick Richland York Chester BIRMINGHAM BRANCH (district No. 6).—The State of Alabama except the following counties: > Baldwin Covington Geneva Houston Pike Barbour Dale Henry Mobile Russell Coffee and towns and cities in Lee and Chambers counties located on or south of the Atlanta & West Point Railroad and the Western Railway of Alabama. JACKSONVILLE BRANCH (district No 6).— The entire State of Florida. NASHVILLE BRANCH (district No. 6).—That part of the State of Tennessee included in Federal Reserve district No. 6 with the exception of the city of Chattanooga. NEW ORLEANS BRANCH (district No. 6) —Those parts of the States of Louisiana and Mississippi located in Federal Reserve district No. 6, and the counties of Baldwin and Mobile in Alabama. SAVANNAH AGENCY (district No. 6).—Savannah, Ga. DETROIT BRANCH (district No. 7) - -The following counties in the State of Michigan: Bay Ingham Livingston Saginaw Tuscola Genesee Jackson Macomb Sanilac Washtenaw Hillsdale Lapeer Monroe St. Clair Wayne Huron Lenawee Oakland Shiawassee LITTLE ROCK BRANCH (district No. 8).—The State of Arkansas except the following counties: Baxter Craighead Greene Mississippi Sabastian2 Benton1 Crawford Lawrence Phillips Sharp Boone Crittenden Lee Poinsett Washington Carroll Cross Madison Randolph Woodruff Clay Fulton Marion St. Francis nd except also the towns of DeValls Bluff (Prairie County), Mena (Polk County), and Newport (Jackson County) LOUISVILLE BRANCH (district No 8).—That part of the State of Kentucky included in Federal Reserve district No. 8, with the exception of the town of Morganfield (Union County), and the following counties in the State of Indiana: Clark Floyd Jefferson Orange Switzerland Crawford Harrison Lawrence Perry Washington Dubois3 Jackson Martin* Scott MEMPHIS BRANCH (district No. 8).—Those parts of the States of Mississippi and Tennessee included in Federa Reserve district No. 8, with the exception of Union City (Obion County), Tennessee, and Paris (Henry County) Tennessee, and the following counties in the State of Arkansas: Craighead Cross Lee Phillips St. Francis Crittenden Lawrence Mississippi Poinsett Woodruff also the town of De Vails Bluff (Prairie County), Arkansas. HELENA BRANCH (district No. 9).—The entire state of Montana. 1 Town of Gentry assigned to Little Rock Branch. 2 Town of Mansfield assigned to Little Rock Branch. 3 Except the towns of Ferdinand and Holland. Digitized for F4 RExAcSepEt Rth e town of Loogootee. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM 95 FEDERAL RESERVE BRANCH TERRITORIES—Continued DENVER BRANCH (district No. 10).—The entire State of Colorado and that part of the State of New Mexico in cluded in Federal Reserve district No. 10. OKLAHOMA CITY BRANCH (district No. 10) —Thjfct part of the State of Oklahoma located in Federal Reserve district No. 10. OMAHA BRANCH (district No. 10).—The entire States of Nebraska and Wyoming. EL PASO BRANCH (district No. 11).—That part of the States of Arizona and New Mexico located in Federal Re serve district No. 11, and the following counties in the State of Texas: Andrews Ector Jeff Davis Midland Reeves Crane El Paso Loving Pecos Ward Culberson Hudspeth Martin Presidio Winkler HOUSTON BRANCH (district No. 11).- The following counties in the southeastern part of the^State of Texas: Anderson Cherokee Jackson Nacogdoches Shelby Angelina Colorado Jasper Newton Trinity A Ba u s s t t r in o p F F o a r y t e B tte e nd J L e a f v fe a r c s a o n P O o r l a k n ge T V y ic le to r r m i a Brazoria Galveston Lee Refugio Walker Brazos Grimes Liberty Sabine Waller Burleson Hardin Madison San Augustine Washington Calhoun Harris Matagorda San Jacinto Wharton Chambers Houston Montgomery SAN ANTONIO BRANCH (district No. 11).—The following counties in ththee S tSattaet eo fo fT eTxeaxs as: Aransas De Witt Hidalgo La Salle Starr Atascosa Dimmit Jim Hogg Llano Terrell Bandera Duval Jim Wells Live Oak Travis Bee Edwards Karnes Mason Uvalde Bexar Frio Kendall Maverick Val Verde Blanco Gillespie Kenedy McMullen Webb Brewster Goliad Kerr Medina Willacy Brooks Gonzales Kimble Nueces Wilson Caldwell Guadalupe Kinney Real Zapata Cameron Hays Kleberg San Patricio Zavalla Comal Los ANGELES BRANCH (district No. 12).—That part of the State of Arizona located in Federal Reserve district No. 12, and the following counties in California: Imperial Los Angeles Riverside San Diego Ventura Inyo Orange San Bernardino Santa Barbara PORTLAND BRANCH (district No 12).—The entire State of Oregon, and the town of Ilwaco and the following counties in the State of Washington: Asotin Columbia Garfield Skamania Walla Walla Clark Cowlitz Klickitat Wahkiakum Also, the following counties in the State of Idaho: Benewah Boundary Idaho Latah Nez Perce Bonner Clearwater Kootenai Lewis Shoshone SALT LAKE CITY BRANCH (district No 12).—The entire State of Utah and the following counties in Idaho and Nevada: IDAHO Ada Bonneville Custer Jerome Payette Adams Butte Elmore Lemhi Power Bannock Camas Franklin Lincoln Teton Bear Lake Canyon Fremont Madison Twin Falls Bingham Caribou Gem Minidoka Valley Blaine Cassia Gooding Oneida Washington Boise Clark Jefferson Owyhee NEVADA Clark Elko Lincoln White Pine SEATTLE BRANCH (district No. 12).—The entire State of Washington except the town of Ilwaco and the follow ing counties which are affiliated with the Portland Branch: Asotin Columbia Garfield Skamania Walla Walla Clark Cowlitz Klickitat Wahikiakum Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS > \ *feJena % toAHo Ji*° >—» V^YO. ; < '*1 / S^ ,0WA CHJCAGC $***u, *£K.' Omaha») 10 ILL. benver9 [Cincinnati r ^ VA f COLO. KANSAS CITY( MO. KANS. rr, \_ i y-r—"^s •^hvUlcvfwlotte /W.C C.tos^eteA OKLA. TENN. r^^"-"»^-* **/*. Oklahoma City i ARK. yers_ph_:sJ—-f Little Rock/ W-MEX Birmingham ^ i™ DALLAS® • ALA" 3 )** Savannah^ i% TEXAS ^> .•1.-J—\ _v Jacksonville^ MM BOUNDARIES OF FEDERAL RESERVE DISTRICTS Houston/ -__ BOUN ( D A A P R PR IE O S X I O MA F T F E E D I E N R A TH L E R E S S T E . R L V O E U IS B R D A I N ST C R H I C T T E ) RRITORIES \SanAntonio\ f ® 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 Acceptances: Page Buying rates 42. Member bank holdings, December 31, 1941 46 Amendments to Federal Reserve Act: (See Federal Reserve Act) Assets and liabilities: (See Condition statements) Bank credit: (See Credit) Bank failures 50 Bank mergers 50 Bank premises: Member banks, December 31, 1941 44, 47 Bank supervision, responsibility of Board for 12. Banking offices: Number of, 1933-1941 49 Banking Studies, publication of 12. Banks: Branches: Number of: 1933-1941.... 49 1941, analysis of changes in 50 Consolidations, absorptions, etc 50 Loans to, by member banks: December 31, 1941 46 Number of: 1933-1941.... . 49 1941, analysis of changes in 50 Suspensions: Number of 50 (See also Federal Reserve Banks; National banks; Mutual savings banks; Nonmember banks; Private banks; State member banks) Bills: Bought by Federal Reserve Banks: All banks combined: 1918-1940, end of year figures 48 1941, end of month figures 48 Bought in open market by Federal Reserve Banks: Volume of operations 35 Discounted by Federal Reserve Banks: All banks combined: 1918-1940, end of year figures 48 1941, end of month figures 48 December 31, 1941 2.8 Each bank, end of year figures 30 Earnings on, each bank 36 Volume of operations 35 Board of Governors of Federal Reserve System: Expenses for 1941 41 Members and officers 67 Policy actions: Regulation D, revision of supplement to provide for increase in required reserves of member banks 60 Regulation U, amendment adopted 56 Regulation W, Consumer Credit, adoption of 57 Regulation W, amendment No. 1 adopted 59 Regulation W, amendment No. 2. adopted 61 Receipts and disbursements for 1941 40 Bonds: Government: (See Government securities) Yields: Monthly and yearly figures 52. Branch banks: Foreign, of member banks and foreign banking corporations 15 Number of: 1933-1941 49 1941, analysis of changes in 50 Discussion of changes 13 97 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

98 INDEX Brokers and dealers in securities: Page Loans to, by member banks, December 31, 1941 46 Business situation during year 3 Canadian-United States economic relations, members of staff of Board serving on Com mittee 11 Capital: Federal Reserve Banks: T All banks combined, December 31, 1941 29 Each bank, end of year figures 30 Member banks, December 31, 1941 45, 47 Central reserve city member banks: Assets and liabilities, December 31, 1941 44 Classification of loans, investments, real estate and capital, December 31, 1941 46 Chart books, revised editions published 12. Charts : Member bank reserves and main factors of change 7 Check clearing and collection: Par list: Discussion of changes in list 14 Number of banks on list and number not on list 51 Volume of operations at Federal Reserve Banks 35 Coins received and counted by Federal Reserve Banks 35 Commercial paper: Discount rates, open market 52. Member bank holdings, December 31, 1941 46 Commitment rates of Federal Reserve Banks 41 Committees: Consulting committee on consumer credit created by executive order 10 Defense Savings Securities, member of Board with Presidents of three Reserve Banks and staff of Treasury 19 Federal Open Market: (See Federal Open Market Committee) Price Administration, Chairman of Board appointed to serve on 12 Condition statements: Federal Reserve Banks: All banks combined, December 31, 1941 2.8 Each bank, end of year figures 30 Member banks, December 31, 1941 44, 46 Conferences: Chairmen of Federal Reserve Banks, meeting with Board 2.5 Defense savings bond program, liaison officers of Federal Reserve Banks called by Treasury for meeting in Chicago 19 Examination department representatives of Federal Reserve Banks with member of Board and its staff 14 Federal Open Market Committee with Treasury on Government financing 6 Fiscal agency, held by Treasury at Federal Reserve Bank of Atlanta 19 Foreign funds control, held by Treasury and attended by representatives of Federal Reserve Banks 18 Presidents of Federal Reserve Banks, meetings with Board 2.5 Regulation W, officials of Federal Reserve Banks with member of Board and staff to exchange information on 9 Congress, reports by Board on proposed legislation 2.4 Consolidations, absorptions, etc., of banks 50 Construction contracts awarded: Indexes of value of 53 Consumer credit, Regulation W: Adoption of 57 Amendments to 59, 61 Issued by Board to carry out provisions of Executive Order 8 Corporate stocks owned by member banks 47 Counterfeit currency, cooperation of Board in educational campaign of Secret Service 12. Country member banks: Assets and liabilities 44 Classification of loans, investments, real estate and capital 46 Credit, bank: Federal Reserve: 1918-1940, end of year figures 48 1941, end of month figures 48 Growth during year 2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX 99 Page Credit policy, effect of war needs on 5 Cuba, members of staff of Board serving on technical mission to 11 Currency: Circulation, 1918-1941 48 Federal Reserve notes: (See Federal Reserve notes) Payments over counter to finance officers of Army and Navy 19 Received and counted by Federal Reserve Banks 35 Defense Contract Service, relations of Federal Reserve Banks with 2.0 Defense Savings Bonds, payroll deduction plan for purchase of 19 Department store sales index 53 Depositaries of Government funds, work of Federal Reserve Banks as 19 Deposits: Federal Reserve Banks: All banks combined, December 31, 1941 2.9 Each bank, end of year figures 30 Government: Federal Reserve Banks : All banks combined: 1918-1940, end of year figures 48 1941, end of month figures 48 Each bank, end of year figures 30 Member banks, December 31, 1941 44 Nonmember deposits in Federal Reserve Banks: 1918-1940, end of year figures. 48 1941, end of month figures 48 Reserves required for member banks 43 Savings, interest rates on 43 Time deposits, interest rates on 43 Directors, Federal Reserve Banks: Chairmen and Deputy Chairmen 69 Class C, appointments during year 2.0 List of 7I~76 Directors, Federal Reserve Branch Banks 71-76 Discount rates at Federal Reserve Banks: Discussion 2.2. Table 42. Dividends: Federal Reserve Banks 2.2., 37, 38 Member banks 45 Durable goods index 53 Earnings and expenses: Federal Reserve Banks: All banks combined 38 Each bank ,. 36 Year 1941 2.2. Earnings on bills and securities 2.3 Economic research services of Board 10 Employees of Federal Reserve Banks, number and salaries 39 Employment: Developments during year discussed. 4 Factory employment index 53 Nonagricultural employment index 53 Executive Orders : 8843, to control consumer credit, issuance of Regulation W to carry out provisions of.. 8, 57 Examinations: Federal Reserve Banks 2.3 State member banks, policy of making one each year continued 13 Expenses : Board of Governors of the Federal Reserve System 2.3, 40 Federal Reserve Banks 36, 38 Factory employment index 53 Federal Advisory Council: Meetings during year 2.5 Members and officers 68 Recommendations : Reserve requirements, increase in 66 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IOO INDEX Federal Deposit Insurance Corporation: Pag Membership changes 50 Federal Open Market Committee : Conferences with Treasury on Government financing 6 Meetings during year 2.5 Members and officers 67 Policy actions 63 Federal Reserve Act : Amendments: Foreign accounts in Federal Reserve Banks and insured banks 24 Government obligations as collateral for Federal Reserve notes, time extended... 2.4 Limitations on real estate loans secured by defense housing insured mortgages... 2.4 Reports on bills introduced in Congress 2.4 Federal Reserve Banks: Administration of regulation on consumer credit 10 Assessment for expenses of Board of Governors 2.3 Branches: Directors, list of 71~7^ Territory of 94 Chairmen and Deputy Chairmen: Appointments during year 2.0 List of 69 Meetings with Board 2.5 Custodians for Government departments and agencies 19 Depositaries of Government funds 19 Directors: Appointment of Class C 2.0 List of 71-76 Dividends paid: All banks combined 37 Each bank 38 Earnings and expenses: All banks combined 38 Discussion of 2.2. Each bank 36 Employees, number and salaries 39 Examination of 2.3 Fiscal agency operations 17 Foreign funds control, agents for Treasury in 17 Gold transactions with foreigners, agents of Treasury 18 Officers and employees: Senior officers, list of 70 Personnel changes during year 2.0 Presidents: List of 70 Meetings with Board 2.5 Presidents and First Vice Presidents, changes during year 2.1 Profit and loss account 37 Retirement system contributions 36 Salaries of officers and employees 36, 39 Vice Presidents: List of 70 Volume of operations 35 Federal Reserve Bulletin, publication of 12. Federal Reserve districts: Area, square miles 88-93 Map showing outline 96 Population 88-93 Territory comprising 88-93 Federal Reserve notes: Circulation 31 Collateral security, end of year figures 31 Government obligations as collateral for, amendment to Federal Reserve Act 24 Issued 31 Redemption fund: All banks combined, December 31, 1941 2.8 Each bank, end of year figures 30 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX IOI Federal Reserve System: Page Membership: Changes in 50 State bank and trust company members 11 ^1 War economy, place in 1 Fiduciary powers: National banks granted authority to exercise, changes during year 15 Financial developments during year 1 Fiscal agency operations of Federal Reserve Banks 17 Foreign accounts in Federal Reserve Banks and insured banks, amendment to Federal Reserve Act 24 Foreign banking corporations, branches of 15 Foreign banks: Deposits of, held by Federal Reserve Banks: All banks combined, December 31, 1941 19 Each bank, end of year figures 31 Foreign branches of member banks and foreign banking corporations 15 Foreign funds control, part played by Federal Reserve Banks in 17 Franchise tax paid by Federal Reserve Banks to Government, 1917-1932. 38 Freight-car loadings, indexes 53 Gold: Reserves of foreign countries held by Federal Reserve Banks 18 Stock, Monetary in United States: 1918-1940, end of year figures 48 1941, end of month figures 4S Gold certificates: Federal Reserve Bank holdings : All banks combined, December 31, 1941 18 Each bank, end of year figures 30 Government financing during year 6 Government securities: Bank holdings of 34 Bond yields: Table 52 Federal Reserve Bank holdings: All banks combined : 1918-1940, end of year figures 48 1941, end of month figures 48 End of December 1940, June 1941, and December 1941 in detail 34 December 31, 1941 2.8 Each bank, end of year figures 30 Earnings on iz, 36 Interest rate on 34 Issue, redemption and exchange of, work of Federal Reserve Banks in connection with. 18,35 Issues, amounts and types of 6 Member bank holdings 44, 46 Open market operations in 6 Resolutions of Federal Open Market Committee authorizing transactions in 63 Treasury bills: Discount rates on 52. Treasury bonds and notes, holdings of Federal Reserve Banks 34 Treasury notes : Yields 52. Volume handled by Federal Reserve Banks 35 Holding company affiliates, voting permits issued to 15 Income: Discussion of developments during year 4 National income payments, indexes 53 Industrial advances of Federal Reserve Banks: All banks combined, December 31, 1941 28 Commitments 31 Each bank, end of year figures 30 Earnings on 36 Rates on: Table 41 Volume of operations 35 Industrial production: Advance in 4 Indexes 53 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IOZ INDEX Page Inflation, action of Government to prevent growth of 4 Inter-American Bank, cooperation of staff of Board in proposed establishment of 11 Interdistrict collection system: Discussion of changes in list of banks 14 Number of banks on list and number not on list 51 Volume of operations at Federal Reserve Banks 35 Interest rates: Federal Reserve Banks 41 Open market, in New York City 52. Time deposits 43 United States Government securities 34 Investments: Member banks, December 31, 1941 44, 46 Legislation: Amendments to Federal Reserve Act 14 Reports to Congress on bills 2.4 Loans: Brokers loans by member banks 46 Central banks, status of 18 Commercial and industrial, discussion of 2. Industrial: (See Industrial advances) Real estate loans of member banks 46 Security loans by member banks 46 Total for member banks, December 31, 1941 44, 46 Loans and investments: Member banks, December 31, 1941 44, 46 Map: Federal Reserve Districts 96 Margin requirements: Regulation U amended 56 Table of , 43 Member banks: Condition statements, December 31, 1941 44, 46 National banks: (See National banks) Number of 49 State member banks: (See State member banks) Membership in Federal Reserve System: Changes during year 12. State banks and trust companies 77-87 Minerals production index 53 Money in circulation: 1918-1940, end of year figures 48 1941, end of month figures 48 Money rates: Open market in New York City 51 Mutual savings banks: Banking offices, 1933-1941 49 Branches: 1933-1941 49 1941, analysis of changes in 50 Number of: 1933-1941 49 1941, analysis of changes in 50 National banks: Assets and liabilities, December 31, 1941 44 Banking offices, 1933-1941 ' 49 Branches: Number of: 1933-1941 49 1941, analysis of changes in 50 Classification of loans, investments, real estate and capital, December 31, 1941 46 Number of: 1933-1941 49 1941, analysis of changes in 50 Trust powers, number granted authority to exercise during year 15 Nondurable goods production index 53 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX IO3 Nonmember banks: Page Deposits of, held by Federal Reserve Banks: 1918-1940, end of year figures 48 1941, end of month figures 48 Insured: Banking offices, 1933-1941 49 Branches 49, 50 Number of 49, 50 Par list, number of banks on list and number not on list 51 Uninsured: Banking offices, 1933-1941 49 Branches 49, 50 Number of 49, 50 Non-par banks, number of 51 Open market operations, part played by Committee in financing Government requirements. 6 Par list, number of banks on: Discussion of 14 Table 51 Payroll deduction plan for purchase of Defense Savings Bonds 19 Payrolls, Factory, index. . . : 53 Policy actions: Board of Governors of the Federal Reserve System: Regulation D, revision of supplement to provide for increase in required reserves of member banks 60 Regulation U, amendment adopted 56 Regulation W, adoption of 57 Regulation W, amendment No. 1 adopted 59 Regulation W, amendment No. 2 adopted 61 Federal Open Market Committee 63 Postal savings deposits: Interest rate on, paid by member banks 43 Presidents of Federal Reserve Banks: Changes during year 21 List of 70 Meetings with Board of Governors 25 Press statements: Financial position of country at outbreak of war 1 Regulation U, reasons for adoption of amendment to 56 Regulation W, reasons for adoption 58 Regulation W, reasons for adoption of amendment 61 Reserves, joint statement issued by Treasury and Board of Governors on control of. . . . 8, 61 Prices: Reasons for increases in 4 Wholesale commodity: Index 53 Private banks: Banking offices, 1933-1941... 49 Branches: 1933-1941. . : 49 1941, analysis of changes in 50 Number of: 1933-1941 49 1941, analysis of changes in 50 Production, industrial: (See Industrial production) Publications of Board issued during year 12. Rates: Discount at Federal Reserve Banks 21, 42 Interest on time deposits paid by member banks 43 Open market rates in New York City 52 Savings deposits 43 Real estate: Loans on, by member banks, December 31, 1941 46 Member bank holdings, December 31, 1941 44 Recommendations of Federal Advisory Council: Reserve requirements, increase in 66 Regulations: D, Reserves of member banks, revision of supplement to provide for increase in re quirements 60 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

104 INDEX Regulations—Continued. Page T, Extensions of credit by brokers or dealers on listed securities, margin requirements. 43 U, Loans by banks on stocks : Amendment adopted, entry in policy record 56 Amended to reconcile regulation with rules issued by Securities and Exchange Commission 10 Margin requirements 43 W, consumer credit: Adoption of, entry in policy record 57 Amendment No. 1 adopted, policy entry on 59 Amendment No. 2. adopted, policy entry on 61 Issued to carry out provisions of Executive Order 8 Reserve city member banks: Assets and liabilities, December 31, 1941 44 Classification of loans, investments, real estate and capital, December 31, 1941 46 Reserve requirements: Discussion of 6 Member banks 43 Recommendation of Federal Advisory Council to increase 66 Regulation D, revision of supplement to increase 60 Reserves: Chart 7 Developments during year 6 Federal Reserve Banks: All banks combined, December 31, 1941 is) Each bank, end of year figures 30 Member banks: Account in Federal Reserve Banks: All banks combined, December 31, 1941 19 Each bank, end of year figures 31 Excess: Discussion of 8 1918-1940, end of year figures 48 1941, end of month figures 48 Increase in requirements 60 Total: 1918-1940, end of year figures 48 1941, end of month figures 48 Salaries: < Federal Reserve Banks 36, 39 Savings deposits: Interest rate on 43 Secret Service: Counterfeit currency, cooperation of Board 11 Securities: Government: (See Government securities) Loans on, by member banks, December 31, 1941 46 Security markets, developments during year 2. State member banks: Assets and liabilities, December 31, 1941 44 Banking offices, 1933-1941 49 Branches: Number of: 1933-1941 49 1941, analysis of changes in 50 Classification of loans, investments, real estate, and capital, December 31, 1941 46 Examination of, policy of Federal Reserve System in making 13 List of, December 31, 1941 77-87 Number of: 1933-1941 49 1941, analysis of changes in 50 States and political subdivisions: Obligations of, owned by member banks 44 Stock prices: Table 52. Studies undertaken by Board in defense effort 11 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX IO5 Surplus: Page Federal Reserve Banks 37, 38 Member banks 45 Suspensions, banks 50 Treasury bonds and notes, holdings of Federal Reserve Banks 34 Treasury currency outstanding, 1918-1941 48 Treasury Department: Reserves, joint statement issued with Board of Governors on control over 8 Trust company members of Federal Reserve System 77-87 Trust powers, national banks granted authority to exercise and to terminate during year. . 15 United States Government deposits: (See Deposits, Government) United States Government securities: (See Government securities) Voting permits issued to holding company affiliates 15 War economy, place of Federal Reserve System in 1 Wholesale commodity prices index 53 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis