The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BOARD WASHINGTON a d d r e s s o f f i c i a l c o r r e s p o n d e n c ee t o the federal reserve board September 17, 1924 Dear S i r : The Board's Committee on S a l a r i e s , Expenditures and E f f i c i e n c y has r e c e n t l y corresponded with the Federal Reserve Agents concerning t h e a l l o c a t i o n of expenses t o t h e "Administrat i o n " and "Federal Reserve Note Issues" u n i t s of the Federal Reserve Agents Function. From t h i s correspondence i t appears t h a t a majority of the banks in a l l o c a t i n g expenses have considered the "Administration" unit as intended t o cover general administ r a t i v e expenses connected with work under the supervision of the Federal Reserve Agent and, in some c a s e s at l e a s t , have included expenses i n t h i s u n i t which c l e a r l y r e l a t e t o other f u n c t i o n s , such as Bank Examinations and S t a t i s t i c a l & A n a l y t i c a l . I t a l s o appears t h a t the expenses charged t o Federal Reserve Note Issues u n i t include in rnary cases the cost of a number of operations which are in no respect r e l a t e d t o the note issue work. I t has been decided t o eliminate i n f u t u r e r e p o r t s the Administration u n i t of the Federal Reserve Agent's Function on page 2b of Form "E", as i t appears from the i n f o r mation furnished , t o the Committee t h a t t h e a d m i n i s t r a t i v e expense r e l a t i n g t o the note issue work is, in most cases, scarcely s u f f i c i e n t in amount t o be measured. The expenses h e r e t o f o r e charged to the Administ r a t i o n u n i t of the Federal Reserve Agent's Junction should accordingly, beginning with July 1, 1924, be charged t o other u n i t s as nearly as may be in accordance with the service r e n dered. Some of the d u t i e s , the cost of which has h e r e t o f o r e been charged i n c e r t a i n cases t o e i t h e r the Ncte I s s u e s u n i t or t o the Administration u n i t , a r e stated below together with the unit t o which the expense is properly chargeable. Handling a p p l i c a t i o n s of NaticnAlBanks f o r fiduciary powers. Handling a p p l i c a t i o n s under Clayton Act. " " f o r acceptance powers. Analyzing r e p o r t s of condition - National and S t a t e Banks. F i l i n g earning and dividend r e p o r t s . Applications f o r membership. Applications to e s t a b l i s h branches, e t c . The above should oe charged t o Bank Examinations Function. I - 2 - 867 S t . 4229- Capital stock applications - Issue and surrender. Maintaining c a p i t a l stock r e g i s t e r , issuing c e r t i f i cates, e t c . The above should be charged t o General Books u n i t , Accounting Func t i on. Handling weekly condition reports of selected member banks. Weekly report of bank d e b i t s . Tabulation of Clearing House statements* Compilation of annual r e p o r t . The above should be charged t o S t a t i s t i c a l u n i t , S t a t i s t i c a l & Analytical Function. Election of d i r e c t o r s . Cost of p r i n t i n g annual r e p o r t . The above should be charged t o the General Overhead Controllable Rinct ion. ' Charges to be made t o the Federal Reserve Note Issues u n i t should represent only such expenses as are incident to the issue of Federal Reserve Notes in accordance with the mamal. In any case where an Assistant Federal Reserve Agent or another person on the s t a f f of the Federal Reserve Agent performs d u t i e s wnich are of b e n e f i t t o another f u n c t i o n of the bank and which are not s p e c i f i c a l l y provided for in' any function under the control of the Agent, a portion of the salaty bf such person should be allocated t o the u n i t benefited by t h e service rendered; and i t i s suggested in any such case that the question of a l l o c a t i o n of salary be taken up by the Agent and the Governor with a view t d making a f a i r d i s t r i b u t i o n of the expense. I t i s oelieved that i f the above instructions are c a r e f u l l y followed in the preparation of future expense r e p o r t s Form "E", the reports submitted by the several banks w i l l be more comparable and that the actual cost of conducting the a c t i v i t i e s coming under t h e control of the Federal Reserve Agent w i l l be more accurately s t a t e d . Will you, t h e r e f o r e , be governed by the above in the preparation of f u t u r e r e p o r t s . Very t r u l y yours, Geo. R. James, Chairman, C omrni tt.ee on Salar ie s, Expenditures and E f f i c i e n c y . LETTER TO EACH FEDERAL RESERVE AGENT
@FedFRASER