Full text of Mimeograph Letters and Statements of the Board : Statement for the Press re Earnings and Expenses of Federal Reserve Banks for 1940, Number R-761, Volume 54, Page 6

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R-761

BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
STATEMENT FOR THE PRESS
January 4, 1941
For immediate release

Preliminary figures received from the Federal Reserve Banks
indicate that their current earnings during 1940 amounted to $43,537,000,
or $5,037,000 more than in 1939.

Current expenses totaled $29,165,000,

which was $518,000 more than in the previous year.
for 1940 were $14,372,000, as compared •with

Current net earnings

$9,854,000 in 1939.

Net additions to current net earnings amounted to $11,488,000
and consisted principally of profits from sales of United States Government securities less charge—offs on bank premises and reserves for losses
on industrial advances.

Net earnings for the year were $25,860,000, an

increase of $13,617,000 over net earnings for 1939.
The net earnings for 1940 were distributed as follows:

Dividends

to member banks, $8,215,000; payments to the U. S. Treasury under provisions
of Section 13b of the Federal Reserve Act relating to industrial advances,
$82,000? net additions to surplus accounts, $17,563,000.

Of the amount

added to surplus, $12,273,000 was transferred to reserves for contingencies.