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EX-OFFICIO MEMBERS W . P . 0 . HARDIHQ, « o n n i O ^ A P A U L M. W ARBURO. V lC I d v l l l b f FREDERIC A . DELANO ADOLPH C. M ILLE R CHARLES S . HAM LIN W ILL IA M 0 . McADOO S K I R A H OF T H I TRIARURY CHAIRMAN JOHN SKELTON W ILLIAM S c o m p t r o l l e r o p t h r Cu r r e n c y FEDERAL RESERVE BOARD WASHINGTON H . PARKER W IL L IS . SECRETARY SHERM AN P . A L L E N . ASST.SRCRRTART AND FISCAL ACRNT AD D R E SS R E P L Y T O FED ERAL RESERVE BOARD DIVISION OF REPORTS AND STATISTICS Dear Sir: According to preliminary data an hand net earnings of-certain Re* serve banks for the current year will be large enough to provide for the pa went of dividends up to the end of the year and the carrying of substantial amounts to Surplus accounts. Section 7 of the Act provides that "all net earnings shall be paid to the United States as a franchise tax, except that one-half of such net earnings shall be paid into a surplus .fund until it shall amount -to 40 per centum of the paid-in capital stock of such bank"* - - In accordance with this provision one-half of all net earnings, less amounts reserved for. de preciation, unexpected losses and like contingencies will have to be paid . to the Government at the close of the year, after the net earnings shall have been determined* It is proposed to have a new item "Surplus" shown in the publish . ed weekly statements of the Board* beginning January 4, 1310, and these banks which have set up surplus accounts are requested to show the item an their daily and weekly statements to tne Board, (Item CEDE of Form 3^)» as well as in their weekly press statement#* Great care should be used in calculating these amount*, as tns totals carried to surplus by the banks at this time must e*ual tea a. ounts of franchise tax payable by tnem to tne Government* For this Reason n o changes in the surplus account once set up snould be made ourin^ tne f o l l o w ing year, or six-month priod. It" will be appreciated if these instructions will be brought to tbe attention of your Bookkeeping and Aud^ti*^- Departments* Very truly yours* Secretary* Mr. Federal Reserve Agent, f j j < 5
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