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EX OF'P'ICIO MaMBI!A.S
W. P. G. HARDING, GoVER NON
ALBERT STRAUSS, VIC! CiiO'tiRNOR
CARTER GLASS
SECRETARY OF THE TREASUftY
CHAIRMAN
JOHN SKELTON WILLIAMS
COMPTROLLER OF THE CUFl:R!NCY
FEDERAL RESERVE BOARD
ADOLPH C. MILLER
CHARLES S. HAMLIN
HENRY A. MOEHLENPAH
W. T. CHAPMAN, SECRETARY
ADDRESS REPLY TO
R. G. EMERSON,ASSISTANT SECRETARY
FEDERAL RESERVE BOARD
WASHINGTON
W. M. IMLAY, FISCAL AGENT
January 30, 1920.
St. 382
SUBJECT:
:Monthly reports of Earnings,
Expenses, and Fiscal Agency
Distursements, Forns 95, 9G,
and 97-a.
Dear Sir:
There are b'}ing for\7arded to you today under separate cover
copies of foms 95 and 96 and
copies of foi'!:l 97-a for use during
the calendar year 1920.
;ri th a view of insuring greater uniforni ty in the treatnent
of certain i to:rr.s such 3.S :Bnr..k Premises, Cost of Federal RGserve Note
issues, etc. t :l. t will be appreciated if you will instruct your .Accounting Dep:utme:nt' to follmv the methods outlinei below in the preparation
of the monthly e:::trninss 3.nd e:~pense reports.
FOR,~
gS
I. EXPENSES OF OPERJtTION
ASSESSME!iiT ACCOUNT EXPEKSES 01' JCI:E?.AL RESERVE BOARD: As requestei in the Board•s letter St. 320 0f J~nL~ry 2, current expenses
should be de-bited a~1d p:cofi t 3.nd loss cre:li ted a. t 3-nd. as of the l3.st d::w
of each month from J:::tn-uary to June with on8-aixth of the amount of the
assessm:)nt fo:· the exp~ns0s of the Beare.. for the six-month period 3nding
June 30, 1920.
C1.JRRENCY SHIPMENTS TO AND FR0M MEMBER AND NON-M:EMBER BlJITCS AND
J3ET71EE!J THE FE:UERP,L RESl':ltV::!:: BANK AllD ITS BRANCH OR BR!i.NCHES: The i tern
"CurrenGy shi}!ments to and from member .?Lnd non-member banks" heretofore
shown below oper::1tin:::; expenses on form 9S has been changed to read as above and is now sho.,.m among operating expenses ir.umediately after item
GOAL, repairs and alterations.
CUB.RZliiCY SHIPI.~TTS ( OTH:E:R TrL-\I,T FEDERAL RESERVE AND FEDERc'\.L RES:sRVE BANK r;;QTES) TO A~lj) FROM ~7ASHI:mTm.T OR A SUB-TBEi!$li1W: The amounts
repo:·tei against this nevY i tern plus arrm.-nts · reportei against the immediately preceding i tern should represent the t,otal cost to the Federal Reserve
:Bank cf currency ship::::ents other than the cost of snipping Federal Reserve
and Federal Reserve :Bank notes to and fro-:n Washin,;tor, or a Sub-Treasury or
to another Federal Reserve "Bank for credit or redemption.
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FORM
96
I I.
O~'JTS:t?.
CUHF&"2TT
EXPJD.~S:SS
FEDERAL RI'SEI:VE CUFL.BEHCY (ORIGINfC-' COST INCLUDING s:IIPPING
CHARGES): This item is intended to repre:::ent ~otal }Ja:'rmcnts 1-rade to
the United States Tre3.su::.•y on account cf ;:rinting r.eH Federa,l Reserve
and Federal Reserve Bar~ notes and t~e ~ost of ehifpir~ such notes
from Washington to the Federal Reserve bar~::s and their branches ..
MISCELLAJ:.J"EOUS CE:li.RGES ACCOUDT FED~ RESE:2VE Ct.JRFiE:TCY: T'.ae
cost of shipping Federal Rese;rve a:nd I'eieral Reserve Bank notes to
Washington or to another Feder1-l Res3rv8 B3.Xlk for credit or red.er!l.ption
as well as the cost to the Federal liJserve Ban.il;;.. of redeer:1ing such notas
at \'!ashington should be reported a,~ainst t:'lis i tern.
TAXES ON FEDERAL RESER.VE BM!K NOTE CIRCULATION: Taxes accrued on Federal Reserve Bank notes should be esti~~ted as at the close
of business on the last day of each :r:onth and the amount thereof charged to current expenses and credited to account "Reserved for Sundry Expenses" of form 34.
BA..~ PF.EIVIISES: In cases where bank: premises are owned but not
occupied as a banking house the :income fro:m rentals, if any, and expenses
connected with such premises should be kept separate from expenses connected with bank premises actually occupied as a banking house. The excess of income over sxpense, if an~·, derived from ba.p]( premises not occupied as a banking house should. be repo:.~ted against "Miscellaneous Earnings," item LYON of form 55· In case the expenses connected with such
bank premises are in excess of income therefrom tile net excess should be
reported against item G1{'\T, "Bank Premises) li on· form 95. 1\:mounts reported against bank premises in the seco rd arnou..""lt colurrn of forn 96 should
represent, however, the net excess of expense over income for the period
from January 1 to the end of the repo!'t :oonth and inversely net earnings
from bank premises reported among "Miscellaneous Sa.r:1ings 11 in the se~ond
amount column of form 95, should represent the ne'v earnings for the period from Janua~J 1 to the end of the report rronth. I:r:come from rentals
as well as expenses 011 account of taxes ani fire ir..surance should be
kept, as far as practicable, on an accrual basis ir. order tr.at the actual nat ir..come or expense from bank promises rray be shown on your !!lont11ly earnings and expense reports.
The cost of new buildings or other expenses which are charged
to your bank premises account, i tern BILD of fo:rn: 34, should be reported
only against memorand-qm i tern GONG on reverse side of f·::>rr.:: 96.
Expenses connected with bank premises occu:;::iod as a banking ·
house sh01.lld be shown among operating exp:;mses on fo:::m ~y;, ta:::es ani fire
insurance (which should b~ kept on an accrual basis) against i ter:.t GIVE
and minor repairs and alterations against i~e~ GOJ\1.
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DISCODN'I' E10:B'Irr' OE LOSS ON BILLS REDISCOUNTED WITH OR SOLD TO
ANOTHER :s'FDERAL RZSERVE BAl·m:: Nat earrj.ngs resul ·v~.:1g fx·om the rediscount
of discounted paper or the sale of bank:ox·s 1 acceptances to another Federal Reserw Bank at a lower rate than that at which the paper was originally discounted or purchased should oe credited to earnings on discounted
or p1u·chased bills as the case may bo 1 while a~y loss resulting from the
redincount or sale of such paper to ar:0ther Federal Reserve Ban.l< at a rate
in e:>ecess of that at which the paper was (;rig5.na1ly acquired should be deducted fron earnings on discounted or p1.:.r(.:r.ased bills as shown on the daily
balance sheet, form 34, and on the monthly earnings report, form 95·
INTEREST ON P~ST DUE PAPER: Past due paper should be carried
a"Dong the earning assets of ;rour banlc and interGst earned on such paper
credited to earnings on discounted bjlls.
IVIEMORANDUM I TEiviS
1.1Er,10J1UIDA OlJ REVERSE SIDE OF FORM 96: The rremorandum i terns
heretofore shown at the bottom of form 95 have been transferred to the
reverse sido of form 9S. In the past amounts reported against these
memorandum items have represented total expenditures on account of note
issues, banlc premises, furniture and equipment, etc,, regardless of
whether or not such expcmdi tures aore im:nedia.tely clurgGd to current
expenses. Beginni ns with January, 1920, :no·.vever, it is requested that
only such a~ounts be reported against the memorandum items as represent
expenditures which are not cbarged to current expenses during the mouth
in which the expense occurred, For example, the cost of office furnitm·e which is taken up on your books as an asset and shoNn against caption Furniture ~~d Equipment of form 34, should be reported against memorandu.~ item GLEN- of form 9G, while office fm·niture which is charged
to current expenses at time of purchase should be reported against item
GHUR.
Very truly yours,
Assistant Secretary.
Letter sent to Chairman of each Federal Reserve Bank.
@FedFRASER