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Digest of the Annual Report of the Federal Reserve Bank of St. Louis For the Year Ended December 31, 1921. According to the annual report of the Federal Reserve Bank of St. Louis, issued by Wililam Met. Mai tin, Federal Reserve Agent and Chairman of the Board, greatly re duced business volume, lower com modity prices and smaller credit needs were reflected in sharp de clines in items represnting the rou tine activities of the bank during the period under review. Gross earnings were $5,166,>la and current expenses $l,961.2t>0, leav ing net earnings of $3,205,065, a decrease of $2,050,596 as compared with the year before. Dividends am ounting to $270,253 were paid dur ing the year, and $1,639,109 were paid into the United States Treasury as a franchise tax. the amount transferred to surplus was $1,042, 564. The chief source of revenue was paper discounted for membre banks and this item showed a radical slump as compared with the total of 1920 During the year 80,820 items totaling $1,609,0- .,938 of. paper was discount ed by the St. Louis institution anil its branches, a decrease of $828,016, 774 under the 'amount discounted in the preceding year. The total resources of the Federal Reserve Bank of St. Louis decreased from $263,102,000 on December 31. 1920 to $213,487,000 on December 31, 1921. Between the-e dates the earning assets decreased from $133, 308.000 to $71,204,000 and Federal Reserve notes in circulation fell from $135,785,000 to $95,246,000. These movements were accompani ed by a heavy gain in reserves, this item standing at $88,876,000 on De cember 31, 1920 and at $106,641,000 on the last day of 1921. Throughout the year the reserve position was progressive!;, strong, December mm ‘i ing the period of its greatest she;.gin C January 3, 192L !>-• reserve car red again t Federal note . posit liabilities was 44. per cent, while on December 12 it h.. 1 rear ed 69.5 per cent. At no time during the year did the normal discount rates o: the bank exceed 6 per cent. On May 21 the progressive discount rate was modified, and on June 23 completely abolished. While figures representing finan cial movements disclose a heavy de crease, statistics reflecting services of the bank to its member banks show gains. For instance, during 1921 the Federal Reserve Bank of St. Louis handled 33.997.77S checks through its clearing department, representing $5,605,464,501, an in crease of 2,307,210 in number, but a decline of $2,039,135,641 in amount as comparde with the yea before. j he average uumuci ui - — led daily was 113,326. In point of number of checks handled. 1921 es tablished a new high record. The Reserve Bank during 1921 al so handled 130,952 collection items, such as notes, drafts, etc. amounting to $180,848,903 in 1920. The aver age item handled in 1921 was ap proximately $1,451 against $1,960 in 1920 and $2,538 in 1919. Transfers of funds tamde for member banks totaled $1,119,204,570. Supplying of meber banks with pa per currency and coin constituted an important part of the banks acti'i ties. Paying out, receiving and re deeming paper currency durnig the twleve months involved the count oi approximately 50,000,000 individual notes. Paying out and receiving gold and silver coin, which service was formerly performed largely by the Sub-Treasury, is now entirely in the hands of the Federal Reserve Bank. All the duties of fiscal agent of the United States in this district were performed by the Federal Re serv Bank of St. Louis, it having completed the process of taking over the St. Louis Sub-Treasury on Jan uary 8. In addition to routine gov ernmental disbursements, the hand ling of check., warrants and coupons, the fiscal agency department handled all details of the issuance of U. S. Treasury certificates of indebtedness, the delivery and exchange of Liber ty Bonds, the sale of Treasury sav ings certificates, etc. The wrok of this depatrment during 1921 included the receipt for exchange or conver sion of 1,191,302 Liberty Bonds and Victory Notes amounting to $233,107,600 and the delivery < bonds and notes amounting to $269,.' 0,650; the payment of 5,216,274 c .upons with fa.' evalue of $30,405,2 >; the handling of 2,012,032 checl and warrant* drawn on the United States Treasurer, amounting to $2 2,057, 794; the sale and issue of $1 ),485, 600 of Treasury Notes' and Certifi cates and the redemption of $107, 909,000 certificates of indebt dness and the sale of ° 800 savings ecuri ties amounting to $391,230, together with the redemption of 9,128 such securities of a value of $1,236,034. On December 31, 1821, the Federal Reserve Bank had a membership of 588, consisting of 483 national banks and 105 State banks trust compa nies. Its total authorized capital stock was $9,206,100 of which $4, 603,050 was paid in. In the course of the year the examination depart ment participated with State Bank ing Departments of the district in 89 examinations of 66 Member State Banks and Trust Companies, i:, addi tion to 12 independent examinatinos of State institutions applying for membership. During 1921 the Federal Reserve Bank of St. Louis continued to oc cupy rented quarters in the Federal Reserve Bank Building at Broadway and I’ine Streets, four floors in the adjoining Commerce Trust Building and space in the Custom House, Ninth and Olive streets. All depart ments were badly .handicapped by lack of space. At the end of 1921 the Federal Reserve Bank and its branches had 762 officers and em ployees. In regard to the volume of busi ness du’itig 1921, 51 Martin says: “The closing month of 1920 were marked by a drastic readjustment which embraced all the great indus x. r x l T - _ : a TL: . u ir. tuc v_ uiivvi movement, which was ihe inevitable sequel of the post-war period con tinued with varying intensity and constituted tiie impelling influence in business throughout 1921. The latter year was the first in which business as a whole suffered damaging effects of the world war, these mate ializ ing in the form of enormously re duced volume, collapsing commodity markets, unemployment, curtailed production and consumption, record commercial moratlity, depfsseion in the agricultural industry and other similar manifestations. Like condi tions only more acute, obtained in foreign countries and were reflected in restricted export outlet for Arner product?. dc!y!OT*fd5^od foreign exchange markets and disrupted agencies of distribution. “fundamentally this country en tc ed and progressed through the year in strong position. The unfav oi able forces affecting business worked steadily in the direction of equalizing general economic levels rather than to produce pci nanent disabilities. Enormous wealth was . eated through agricultural produc tio . and the output of mines and factories. The failure of trade to resj ond favorably to these construc tive factors was due to lack of bal ance in the economic structure and disturbed psychology of the consum ing public. At the close of 1921 there was abundant evidence that the processes of readjustment had made notable strides, and that substantial foundations had been laid for recon struction. In numerous important in dustries liquidation had run its course, while in virtually all, peak levels were left far behind and ap preciable progress made toward nor mal. lIIVtMlUM 1C;-* ill LIlt2 of the year disclosed in the main heavy stocks of both raw and finish ed materials, most of which had been purchased at high prices. The outlet for these goods was constricted by the disposition to economize among ultimate consumers, and ultra conservatism on the part of whole sale and retail merchants. The prac tice of providing for future require ments was almost completely aban doned, distributors hokling down their purchases to such good as they could dispose of from week to week or month to month. Unusual emphasis was laid on values and prices, and merchandise which was not reduced was moved only with the greatest difficulty, if at all. As the year be came older the volume of buying was further curtailed by unemployment in the cities and the sweeping de cline in the market values of farm products in the country. “In the early autumn there began to develop signs of improvement in general business, which during the final months of the year became well defined in some of the leading in dustries of the district. Boots and shoes, clothing, groceries, furniture, drugs, chemicals and hardware mov ed much more satisfactorily, and in these lines there was some relaxation in the matter of immediate buying, fair sales being made for forward de livery. The advance in raw cotton prices resulted in a partial revival in the Southern part of the district, and marketing of the tobacco and ^wmm^mmmm^rnnm—_KBS | V ^^^P I A Southern I I Institution I P The business activities of the Standard ■ ■ Oil Company (Kentucky) are confined I p to the South. The Company has pro- ■ 1 gressed with the marvelous growth of p P the South and is today a vital part of I p the business and economic life of its ■ The following data gives some idea of the operations of the Standard Oil Company (Kentucky) in the State of Mississippi: It operates 105 tank stations and service stations. ’ The Company pays in salaries and commissions to its representatives in . the State of Mississippi approximately $500,000.00 per year. Under the various City, State and County License and Taxes, it pays approxi mately $30,000.00 per year. Hty and efficiency a >loyes have con- 1 building up and I 3-wide service to I merit the public’s a rased upon the I roducts, its effic- I ts service station I 1 throughout the ■ Company 1 KENTUCKY I :t Manager 9 sippi B s. 9 rice crops had a buoyant effect. In the typical grain and live stock areas, however, the latter months failed to bring notable •*elief in the general business situation.” “CAN A BEEF” DAY POPULAR IN YAZOO COUNTY, MISS. Yazoo County Farmers Getting What Is Coming By Good Management— Canned Nearly $21,000 Worth of Meats. Meat preservation demonstrations in rural communities of Yazoo Coun ty, Miss., may have almost without exception taken the form of “Can a Beef” {lay, according to reports re ceived by the United States Depart ment of Agriculture. The entire community comes together for the day, and under the supervision of the extension agent cans the whole ani mal. This demonstration gives an opportunity for the agent to instruct the women in the proper cooking of the various cuts of beef and in the utilization of every piece suitable for food. The demonstration usually closes with a soap-making lesson, so that nothing is wasted. Communities have become interest ed in buying community steampres sure canners and in working togeth er. Yazoo County has a community canner in each supervisor’s district, bought by the farm bureau. This canner is the property of the district and is carried from community to community for canning work. The extension agent seized the oppor tunity afforded by these canners to help the farmers convert their year lings, which at present bring a very low - price on the market, into eannec steak, roast, hash, and soup, anc their surplus pork veal, and chicker into palatable cooked products, zoo County reports that about 3( communities have had the use of th< big pressure cooker purchased co operatively, and over 50,000 pound. of beef, pork, pork, poultry and gam< valued at $20,700 have been canned. In this county the farmers were s< afraid the Board of Supervisors migh not renew the contract that they wen' in crowds to ask for it and for a rais< in salary for the extension agent Both requests were granted. Th< large plantation owners are becom ing interested in canning meat fo their plantation stores. They figuri a beef, animal, when canned an< sold locally, will bring them $15 mor< than when sold on foot, as well as give their, plantation hands a better product for their money. Throughout the year the extension agents are called on fir meat can ning demonstrations. There is never a lull in the demands. The interest of both men and women has been aroused. i - i Senator Vardanian's friends are confident that he will win in the first primary by a good majority. He ex • pects to enter upon a spea".;:ng tour . soon and the people will have an op ; portunity of hearing the issues dis - cussed in a statesman-like manner. - —Sentinel (Pontotoc.) 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