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CHARLES S. HAMLIN. GOVERNOR FREDERIC A. DELANO. VICE GOVERNOR PAUL M. WARBURG W. P. G . HARDING ADOLPH C. MILLER Ex-officio Members WILLIAM 6. MCADOO SECRETARY OF THE TREASURY CHAIRMAN JOHN SKELTON WILLIAMS FEDERAL RESERVE B O A R D Co m p tr o lle r o f th e C u r r en c y H. PARKER WILLIS. SECRETARY SHERMAN ALLEN. ASST. SECRETARY A DDRE88 REPLY TO WASHINGTON FEDERAL RESERVE BOARD 509January 22,1916. SIR: Enclosed please find 50 copies of revised forms Nos. 286b and 287b for reporting the monthly earnings and expenses of your bank. No change, has been made in the form of the report for the earnings except that the reading of the first two captions has been modified to agree with the reading of the corresponding items on Form 3^-* Under the second head should be included, therefore, the earnings from all open market purchases of trade acceptances, bankers* domestic acceptances and bankers* foreign trade accept ances. No provision has been made for reporting separately "Commissionspaid". Such commissions, in accordance with informal ruling of the Board under date of September 22, 1915* ( See page 3 O9 of the October Bulletin), should be treated as part of the purchase price or cost of the investment. Under the head of Current Expenses the following observa tions would seem pertinent : 1. Assessments on account of expenses of Federal Reserve Board should be apportioned to each month (regardless of the dates when paid) and cumulative figures of amounts charged since January 1 be shown in the second column. 2. The expenses of the several advisory bodies, in- , eluding the Federal Advisory Council, the Governors* and the Federal Reserve Agents’ conferences, should be segregated, these expenses to include fees, per diem allowances, travelling and other incidental expenses. 3* Items to be apportioned over a period should on day of payment, be charged to account "Expenses paid in advance" (BIDE- Form 3 ^)* pro rata amounts to be transferred to Current Expenses on the last day of each month and be included, under proper headings, on monthly report of expenses (Form 287b). if - 2- -509 Under the general head of Organization Expenses please report, in accordance with informal ruling of December 10, 1915> ( page 12 of the January BULLETIN), in short column the cost of Federal reserve notes is sued by the bank prior to January 1 not offset by cur rent earnings, and all other organization expenses shown on Form 3 ^ after closing of books for calendar year 1915* The total of these two items (HUNT) should equal the amount shown at the beginning of the year against item BEAM on Form jk* Attention is called to the provisions of the Board’s informal ruling of Decem ber 10, 1 9 1 5 ^ regarding the methods of amortizing the cost of Federal reserve notes and other organization expenses. 5* A separate account is set up for depreciation of furniture and equipment. This account is to show amounts written off in accordance with paragraph 5 of informal ruling of December 10, 1915• 6. The amount of item HALL shown at the foot of Form 227b should equal the amount shown against item BATH on Form 3 *+ as at close of business on the last day of each month. Items shown in memorandum on Form 2S6b represent amounts expended during the month on account of Federal reserve notes printed and shipped, including expressage, insurance, etc. ; also amounts paid during the month for furniture and equipment. As indicated in the heading, the figures in the second column against items HOLT and HERD in this memorandum should equal amounts shown against items BOOT and B0L0 on Form 3 ^+ as at close of business on the last day of the report month. Copies of the monthly report of earnings and expenses should be sent to us on or before the seventh of each month. Respectfully, Assistant Secretary. Enclosure b'aL'O
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