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593 FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO T H E FEDERAL RESERVE BOARD April 24, 1928 St. 5759 SUBJECT: Revision of Member Bank Quarterly Condition Report and Semi-Annual Earnings, Expenses, and Dividends Report. Dear Sir: At the conference of the Federal reserve agents held in Washington on October 31 to November 3, 1927, the Committee on Bank Examinations, cons i s t i n g of Mr. Hoxton, Chairman, Mr. Mitchell and Mr. DeCanro, was requested to confer, i f agreeable to the Federal Reserve Board, with the Chief of the Board's Division of Bank Operations with regard to possible changes in the quarterly condition and semi-annual earnings and dividends reports of s t a t e bank members of the Federal Reserve System, forms 105 and 107. The Committee held a meeting in Washington March 22 and 23, at which were present, in addition to the members of the Committee, Messrs. Pole, G-ough and Kane of the o f f i c e of the Comptroller of the Currency, Mr. Fry and Mr. Bailey, Assistant Federal Reserve Agents a t Richmond and Minneapolis, respectively, and representatives from the Board's Divisions of Bank Operations, Research and S t a t i s t i c s , and Member Bank Examinations. Prior to the meeting in Washington, a tentative draft of the condition report form 105 was prepared and a copy furnished to each member of the committee. The changes contained in the tentative draft and others suggested at the conference were discussed in d e t a i l and a l l the changes agreed upon at the conference are embodied in the enclosed proof copy of the form, as are a few minor changes made a f t e r the conference by the Division of Bank Operations a f t e r consultation with the o f f i c e of the Comptroller of the Currency. At the conference i t was agreed that i t i s desirable to have the condition report used by the Board f o r state bank members and that used by the Comptroller's o f f i c e for national banks as nearly the same as practicable, also that the same form should be used f o r every c a l l report during the year, instead of having a long form, i . e . , with schedules covering loans and d i s counts and investments, e t c . , in June and a short form without such schedules for other c a l l dates. It i s also hoped that both forms 105 and 107, as approved for use by the banks in submitting their June reports, w i l l remain unchanged for several future c a l l s at l e a s t . Form 107, Semi-Annual Earnings, Expenses a.nd Dividends report, a copy of which i s enclosed, was also considered, and i t was decided to recommend no substantial changes in t h i s form but merely to amend certain captions so that they would indicate a l i t t l e more c l e a r l y the kind of information to be reported. ยป - 5 9 3 2 From a comparison of the r e v i s e d c o n d i t i o n r e p o r t form 10R with t h a t used l a s t June, you w i l l note t h a t the important changes suggested a r e as f o l l o w s : 1. "Cash and due from banks" i s shorn as a s i n g l e item among r e sources and a schedule provided to show the d e t a i l d e s i r e d under t h i s heading. 2. The u n d i v i d e d p r o f i t s item has "been changed by o m i t t i n g the subitem of c u r r e n t expenses and.by showing r e s e r v e s f o r d i v i d e n d s and cont i n g e n c i e s a s a s e p a r a t e item. 3. The item " L e t t e r s of c r e d i t and t r a v e l e r s ' checks s o l d f o r cash and o u t s t a n d i n g " h a s been i n s e r t e d immediately a f t e r the item " C e r t i f i e d and c a s h i e r s ' or t r e a s u r e r s ' checks, i n c l u d i n g d i v i d en d c h e c k s , o u t s t a n d i n g so t h a t the amount w i l l be i n c l u d e d i n bank d e p o s i t s , the same a s a r e c a s h i e r s ' checks', f o r r e s e r v e c a l c u l a t i o n p u r p o s e s . 4 e A new item "Mortgage bonds and p a r t i c i p a t i o n c e r t i f i c a t e s o u t s t a n d i n g " has been added on the l i a b i l i t y s i d e . 5. The loan and d i s c o u n t schedule h a s been expanded so a s to s e g r e g a t e , so f a r a s p r a c t i c a b l e , l o a n s t o l o c a l customers from l o a n s to o t h e r s and paper bought in the open market. 6. The schedule of domestic s e c u r i t i e s has been expanded to c o r r e s pond more c l o s e l y with the c l a s s i f i c a t i o n h e r e t o f o r e used by the Comptroller of the Currency. ,7. The schedule of time d e p o s i t s has been made to conform l a r g e l y with the d i f f e r e n t k i n d s of time d e p o s i t s d e f i n e d in the B o a r d ' s r e g u l a t i o n D, Before formal a c t i o n i s taken on the forms by the "Board and the Comptroller of the Currency, we should l i k e to have the b e n e f i t of the views of each F e d e r a l r e s e r v e agent t h e r e o n . I t w i l l be a p p r e c i a t e d , t h e r e f o r e , if you w i l l examine the p r o o f s of the r e v i s e d forms and the d r a f t s of t h e accompanying i n s t r u c t i o n s , and advise the 'Board of your views with r e g a r d t h e r e t o a t your e a r l i e s t convenience. Very t r u l y y o u r s , R. A. Voung, GOVERNOR. A l l AGENTS EXCEPT CLEVELAND, RICHMOND AND MINNEAPOLIS (COPY TO ALL GOVERNORS)
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