Federal Reserve Bank of San Francisco Annual Report
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THIRD ANNUAL REPORT O F T H E FEDERAL RESERVE BANK OF SAN FRANCISCO FOR THE YEAR ENDED DECEMBER 31, 1917 WASHINGTON GOVERNMENT PRINTING OFFICE 1918 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis THIRD ANNUAL REPORT O F T H E FEDERAL RESERVE BANK OF SAN FRANCISCO FOR THE YEAR ENDED DECEMBER 31, 1917 WASHINGTON GOVERNMENT PRINTING OFFICE 1918 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis LETTER OF TRANSMITTAL. F ed e r a l R e se r v e B a n k , San Francisco, Cal., January 15, 1918. S ir: I have the honor to submit the following report concerning the operations of the Federal Reserve Bank of San Francisco and the Twelfth Federal Reserve District for the year ended Decem ber 31, 1917. Yours, very truly, J ohn P e r r in , Chairman and Federal Reserve Agent Hon. W. P. G. H a rd in g , Governor, Federal Reserve Board, Washington, D. C. 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis TABLE OF CONTENTS. Page. Financial results of operation................................................................................. 7-9 Earnings, expenses, and dividends................................................................ 8 Activities during the year...................................................................................... 9-10 Discount operations......................................................................................... 9 Acceptance business........................................................................................ 10 United States bond operations....................................................................... 10 Municipal warrants.......................................................................................... 10 Reserve position............................................................................................... 10 The Federal Reserve Bank and member banks.................................................... 11-15 Movement of membership within the district............................................... 11 State banks and trust companies.................................................................... 11 Accommodation of member banks through discounts................................... 13 Deposits from member banks............1............................................................ 13 Periodic reports regarding condition of member banks................................ 13 Bank failures within the district.................................................................... 13 Overdue paper................................................................................................. 14 Branches........................................................................................................... 14 The Federal Reserve Bank and the public........................................................... 15-16 Open-market transactions................................................................................ 15 Effect of discount rate policy of the bank upon general market rates......... 16 Publicity work of the bank and the attitude of the public toward the Fed eral Reserve system..................................................................................... 16 The Federal Reserve Bank and the Government................................................. 16-25 Relation to the comptroller’s office................................................................ 16 Government deposits................................................................................... 17 Relation to the United States Treasury......................................................... 17 Liberty loan campaigns................................................................................... 17-25 The Federal Reserve Bank and note issues........................................................... 25-27 General policy.................................................................................................. 25 Denomination of notes issued.......................................................................... 27 Interdistrict movement of notes...................................................................... 27 Internal management of the bank.........................................................................28-30 Function and work of directors, executive committee, and staff................ 28 Office and vault facilities; bank premises...................................................... 30 Check collections....................................................................................................30-32 General business conditions................................................................................... 32-34 LIST OF TABLES. 1. Classification by maturities of paper rediscounted.......................................... 34 2. Reserve position at the end of each month during 1917.............................. 35 3. Certificates of indebtedness subscribed............................................................ 35 4. Officers and directors of Federal Reserve Bank............................................... 36 5. Comparison of deposits and of loans and discounts of national banks with those of a year ago.......................................................................................... 36 6. Comparisons of loans, investments, and deposits since June 30, 1914............ 37 7. Federal Reserve notes issued and redeemed by Federal Reserve Agent dur ing 1917........................................................................................................... 38 e x h ib it s . A. Chart of Federal Reseve notes outstanding during 1917................................. 39 B. Bank clearings of principal cities..................................................................... 40 0. Banking power of the district........................................................................... 40 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis THIRD ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO. F in a n c ia l R esults of O perations, COMPARATIVE STATEMENT. The large growth of the Federal Reserve Bank of San Francisco during the past two years is shown in the following comparative statement: Dec. 31,1917. Dec. 31,1916. Dec. 31,1915. RESOURCES. Total gold reserve......................................................................... $94,018,470 $35,815,250 $20,380,960 Legal tender notes........................................................................ 408,823 78,678 4,778 Total reserves...................................................................... 94,427,293 35,893,928 20,385,738 Bills discounted, members........................................................... 25,780,201 250,968 467,162 Bills bought in open market........................................................ 17,082,456 12,462,266 683,840 Total bills on hand............................................................. 42,862,657 12,713,234 1,151,002 United States Government long-term securities......................... 2.455.000 2,633,750 1,000,475 United States Government short-term securities........................ 1.500.000 500,000 Municipal warrants....................................................................... 737,376 344,978 Total earning assets............................................................ 46,817,657 16,584,360 2,496,455 Due from other Federal reserve banks, net................................. 5,908.934 4,294,110 3,924,326 Uncollected items......................................................................... 12,809,375 3,846,266 213,708 Total deductions from gross deposits................................. 18,718,309 8,140,376 4,138,034 Real estate.................................................................................... 120,000 463,807All other resources........................................................................ 463,807All 92,471 Total resources.................................................................... 160,547,066 60,618,664 27,112,698 LIABILITIES. Capital paid in...................................................................*......... 4,162,450 $3,929,300 $3,941,800 Government deposits................................................................... 12,353,939 3,643,138 427,321 Due members’ reserve account..................................................... 63,779,910 37,852,376 17,509,725 Due nonmember banks, clearing account................................... 2,620,985 Collection items.............................................................................9,885,477 2,030,467 21,832 Total gross deposits............................................................. 88,640,311 43,525,981 17,958,878 Feredal reserve notes in actual circulation................................... 67,744,305 13,098,115 5,212,020 All other liabilities........................................................................ 65,268 Total liabilities.................................................................... 160,547,066 60,618,664 27,112,698 It will be observed that the amounts due to member banks have approximately doubled in each of the past two years, while the gold reserve has increased