Earnings and current expenses of each of the Federal Reserve Banks during the calendar year 1915. Expenses of the Federal Advisory Council and of the Conferences of the Governors and of the Federal Reserve Agents from date of organization to Dec. 31, 1915. Organization expenses, also cost of Federal Reserve notes and equipment for the period November, 1914, to Dec. 31, 1915. Recapitulation of earnings and expenses of the Federal Reserve Banks and the system as a whole from organization to Dec. 31, 1915. 1 Cost of Federal reserve notes used from July 1 to Dec. 31, 1915, and not offset by earnings-$111-carried to profit and loss. GOLD SETTLEMENT FUND. Payments and transfers through the gold settlement fund have been numerous during the month of January and indicate its continued development. Federal Reserve Banks and Federal Reserve Agents are using the fund freely. The amounts held to the credit of the Federal Reserve Banks on January 20, 1916, were $84,230,000, while the amounts standing to the credit of the Federal Reserve Agents in the Federal Reserve Agents' fund on that date were $58,030,000. A condensed summary of transactions in the gold settlement fund from May 20 to December 31, 1915, is given below: Condensed summary of transactions, May 20 to Dec. 31, 1915, both inclusive. 15,882,000 151,670,000 4,414,000. 13,096,000 $1,049, 000 $4,279,000 5,717,000 9,245,000 9,695,000 8, 112,000 11,042,000 10,765,000 9,875,000 11,037,000 3,717,000 1,356,000 9,852,000 6,072,000 6,955,000 4,355,000 6,254,000 2,464,000 11,478,000 9,308,000 10, 950,000 9,880,000 1,052,649,000 1,052,649,000 85, 697,000 85, 697,000 77,760,000 the Federal Reserve Bank of Chicago were $4,414,000, an amount relatively small in proportion to its total payments of $156,084,000. The net payments made by the Federal Reserve Bank of New York were much heavier, both in amount and relatively, being $81,283,000. Among the causes which may be cited to explain this shifting in the ownership of the gold held in the gold settlement fund are the usual late summer and fall movement of funds from New York to the interior for crop-moving purposes and the movement of a part of the gold received from Europe in payment for exports in the course of its distribution among the interior points at which much of the export business originated. The movement of gold for crop-moving purposes is balanced in normal years by return shipments beginning in November and reaching their maximum about the first of the year. In the present situation it appears probable that the other factor mentioned has been sufficiently important to overbalance this normal return flow and that it may be considered as accounting for the transfer of ownership of gold held in the gold settlement fund from the Federal Reserve Bank of New York to other Federal Reserve Banks. This movement did not terminate with the close of the year 1915, but continued through the first week in January, so that the highest point was reached on January 6, when the net amount thus transferred stood at $86,293,000. The settlements of January 13 and 20 have, however, both been favorable to the Federal Reserve Bank of New York, so that the net amount of the movement at the latter date was only $82,674,000. items of $156,084,000, while its credits were only $4,114,000 less; Boston, next in order, received payments aggregating $135,209,000 and made payments only $1,049,000 less; Philadelphia and St. Louis, which ranked next in volume of transactions, had balances also relatively small; while Minneapolis, San Francisco, and Cleveland, which handled the smallest volume of transactions, were all creditors by amounts large in proportion to the total amount of transactions handled by them. The table following shows the amounts of the deposits and withdrawals made by each Federal Reserve Bank through the United States Treasury, subtreasuries, or mints. No shipments of gold between the various offices of the Treasury have been necessary in connection with the operations of the fund, as with the exception of the New Orleans Subtreasury and the Denver Mint the deposits at each point have exceeded the withdrawals, and in these cases the Treasury Department had ample funds on hand to make the payments desired. It is interesting to note that, with the exception of New York, the banks which have handled the largest transactions through the gold settlement fund show net payments or receipts much smaller with relation to total payments made and received than do those banks which have handled the smaller aggregate sums. For example, the Federal Reserve Bank of Chicago, which ranks second in amount of total payments, had total debit Deposits and withdrawals by Federal Reserve Banks, and where made, May 20 to Dec. 31, 1915. [000's omitted.] Depos- With- Depos- With- Depos- With- Depos- With- Depos-With- Depos- With- Depos- Withited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. Boston... Philadelphia.. Denver.. Total... Depos- With- Depos- With- Depos- With- Depos- With- Depos- With- Depos- Withited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. 1 Includes a deposit of $5,000,000 made by the Treasury Department. *Includes a deposit of $4,000,000 made by the Treasury Department. 3 In addition to the amount shown, $4,400,000 has been deposited with the assistant treasurer of the United States at San Francisco, to the credit, however, of the Federal Reserve Agent at San Francisco. |