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450 federal reserve board WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD October 24, 1930. s t . 6769. SUBJECT: Weekly statement of c o n d i t i o n of F e d e r a l r e s e r v e banks. Dear S i r : In the case of a number of the F e d e r a l r e s e r v e banks, e a r n i n g s d u r i n g t h e c u r r e n t y e a r have not been s u f f i c i e n t to cover o p e r a t i n g e x p e n s e s , d i v i d e n d s accrued, e t c . , w i t h the r e s u l t t h a t a r e d f i g u r e i s being shown a g a i n s t the item "Available f o r d e p r e c i a t i o n a l l o w a n c e s , r e s e r v e s , s u r p l u s and f r a n c h i s e t a x " , code "CUTE", on t h e d a i l y balance s h e e t , Form 3^. In one c a s e r e c e n t l y the r e d f i g u r e was l a r g e enough to r e s u l t i n a n e g a t i v e amount b e i n g shown f o r "All o t h e r l i a b i l i t i e s " in the B o a r d ' s weekly s t a t e m e n t . I t i s f e l t t h a t whenever a r e d amount i s shown f o r item CUTE, i t should be i n c l u d e d among "All o t h e r r e s o u r c e s " i n s t e a d of b e i n g d e ducted from a c t u a l l y e x i s t i n g l i a b i l i t i e s . Acc o r d i n g l y i n c o n d i t i o n s t a t e m e n t s beginning w i t h Wednesday, October 29, we w i l l add the amount of i t e m CUTE on Form 3^ to "All o t h e r r e s o u r c e s " whenever i t r e p r e s e n t s an excess of deductions over c u r r e n t n e t earnings» I t w i l l be a p p r e c i a t e d i f you w i l l k i n d l y f o l l o w the same procedure i n any s t a t e ments of c o n d i t i o n of your bank i s s u e d l o c a l l y . Very t r u l y y o u r s , E. L. Smead, C h i e f , D i v i s i o n of Bank O p e r a t i o n s . TO ALL FEDERAL RESERVE AGENTS *
@FedFRASER