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To the Directors^
Ad it customary at the close of each year, we present a
surrey of our operations at Minneapolis and Helena and draw attention
briefly to the results obtained»

Xt will be noted that considerable

expansion has tsken place In most functions of the bank and that this
increaee has baen attained with a reduced yearly expense totalo

While

1928 expenses have made a very favorable comparison with the coete for
19274 the 1929 total expense will* no doubt* be greater than that of
the past year,
We believe the efficiency of the Staff has reached a higher
degree than formerly and the operations of the Bank continue to be
performed smoothlyo
Zn the accompanying tables and statements, the volume and
costs of the various functions are given and comments made on changed
conditions',

Some of the tables include Helena volume flgnres in addi­

tion to ^iich a separate report is furnished by the Managing Director
at Belena0

January 1, 1929.




Accounting
Comments.............................. ..••••••• 30-31
Humber of employee© and cost of unite*........... »». 31
Member bank balanced................. ...... ^ 61
Transfer and Coding Dhit <....................... 63-64
,
Administration Coeta ................ ................. .

44

Auditing
Comments

48

Bank Premises
33
Minneapolis building ............................ .
Helena building.................................. • 24
Depreciation charge-offs and reserves......... .... 35
Comments
------............................. 36-38
Cafeteria ........ ....... -........................ . °°° 47
Closed Banks
Comments *.......................... ........... 53=54
»
Cost of function and number of employees <.*«.....o«o 54
>
Collatsral
Comment s

«..........................*........ . •0 59

Collections
Hon-Cash Collections
Comment s ............................ ............ . 66
Cost* number of employees and number of items
handled *...................................... 67
Comparative statement* number of items received
for collection............................ ..
67
Check Collections » Transit Department *........68-74
Coupons
Comments ........... ......... ........ ........... . 66
Cost of function* number of employees and volume
of work handled ........................... 6?
Currency and Coin
Comments............ ............ *............... •
Original cost.cost of redemption and shipping charges.,
Humber of shipments received and sent ...............
Functional costs, number of employees and volums
of work handlsd ....................... ....... .
Amount of currency received from and shipped to
member and non *
= member banks •••................ .
Coin shipmsnts received and e e n t ............... .
Custodies ............................. ................

57
57
56
58
57
69

Deficient Reesrve Penalties „............... .......... * 61
Discounts
Comments ....................................*oco 43*50
Cost of function, number of employees and
volume of work hsndlsd..................... . ••« ^
Statement of operations ...................... .
52
Bates ....... ....................................
Statement of Bills Purchased
................ CO







Dir idends paid since organisation *............. ......... 6
Barnings
Comparative statement 1928~1926 ............... ..... 11
Gross earnings and monthly averages »............... 12
Average Bates on earning assets..... ............... 12
Coaaaent*.............................. ......... 13-17
Expenses
Comparative statement 1928-1927-1926 .......... ..... 18
Comparative statement of Miscellaneous Expenses ..... 19
Comments »• .............................. ...... . 20-29
Administration Costs-General overhead ........... .
44
Comparative Statement by Functions-Minneapolis ...... 45
Comparative Statement by Functions~Helena ........... 95
Reimbursable expenditures ......................... . 32
Failed Banks * ................ .................... . 53-54
Federal Reserve Agent *s Functions ...................*••« 75
Somber of employees and expenses of various Units „ 75-76
Bank Examinations............. ................. 77-79
Federal Reserve lotes ........................... 82-86
Federal Reserve Club ..................... ........ .

46

Federal Beserve Hotes
Comments
c2 » *
85
Statistics 0 ............. ...•••••««••.............. 84 ' S
8
Fiscal Agency Functions
Comments ............ .............. .......... ... 87-88
Franchise Tax paid since organisation ..... ........... < , 6
>.
Functional Reports
Comparative cost of various functions-Minneapolis....45
Comparative cost of various functions-Helena ........ 95
Administration costs-General overhead .............. 44
(Functional reports will also be found under
department headings such as Currency, Dis­
counts, etc«)
Furniture and Equipment
Amounts charged out of earnings since organisation .«* 22
Comments...................................... . 39-40
General Service Functions
Comments ••. ..................................... 9G*»91
Sumber of employees and cost of various units
89
General Overhead - Administration Costs *............ .

44

Gold Holdings
Reserve Position..............................
60»61
Amount held by bank and F« R« Agent ...... ....... .
62
Helena Branch
Comments.......................... *......... 92-94
Comparative functional expense report .............. 95
Bank premises ...... .......... .............. .
34*35




62

Investment®

Leased fir# ............... ............. .............. . 66
Liabilities, Comparative Statement 1928-1927 0..............2
Member Banka
Reserve balances ....... .......... ............... . 61
Defleient reserve penalties.................... .
61
Change* in membership........................... 79-81
Hon-Cash Collections ............................... . 66-67
Personnel
Cosaenta..... .......... ........................ .
Cott of personnel function ......... ................
Changes in staff during 1928 .......... ...........
Velfare and cafeteria ~ comments «,.«................
Monthly basis of salaries by functions.............
lumber of employeee and expenses by functions .......
Federal Reserve C l u b ..............................

41
42
42
4?
43
45
46

Profit and Loss
8tatsment in detail for year 1928 .............. .
3
Summary report for year 1928 0....................... 4
Account since organisation
..................... 5
Dividends, surplus and. franchise Sax ........... .
6
Comments 0...... ................. ......... ...... 7-10
Belmbursabls Expenditures

............ ........ . 32

Bssarvs Position .................................. . 60*61
Resources, Comparative statement 1928-1927 .... ....... .

1

Salaries
Monthly basis by functions ....... ...... ...........

43

Securities
Custodies unit 0.................................... 59
Invsstments held ................................... 62
Surplus
Detail statement sines organisation...... ...........
Telegraph...... ,.....................................

6
65

Transfers of Ponds
Comments ....................... ......... ......... 63
Functional costs, number of smployeee and volume
handled........................ ............... 64
Transit Functions
CosiMnts ..................................... o p . 68-69
Costs, number of eoployees and volums handled ....... 70
Statistics................ ..................... 71-74
47

COMPARATIVE STATEMENT OF RESOURCES
FEDERAL RESERVE BANK OF MINNEAPOLIS AND HELENA BRANCH

Deoember 31, 1928
Gold
Gold
Gold
Gold
Gold

Redemption Fund - F. R. Hotee
with Federal Reserve Agent - - - - - - - - Settlement Fund - - - - ------------ -----Coin - - - - - - - - - - - - - - - - - - - Certificates............- ...............

2,341,769.47
47,920,620.00
29,646,059,76
3,811,500 o00
1,930,500o00

December 31, 1927
#

1,422,991*67
49,728,665*00
16,830,517.73
3.516.675.00
l,536,500o00

Legal-tender notes - - - - - - - - - - - - - - - Silver Certificates - - - - - - - - —
- - - - Standard silver dollars - - - - - - - - - - - - -

664,209,00
1,470,984„00
574,909,00

632.221.50
3.147.106.00
249.756.00

National bank notes - - - - - - - - - - - - - - Federal Reserve bank notes - - - - - - - - - - - Subsidiary silver, nickels and cents - - - - - - -

1,233,500,00
400.00
158,280.41

1.021.500.00
2,000*00
199,792,10

F. R. Notes of other F. R. Banks - - - - - - - - Our Federal Reserve notes on hand - - - - - - - Mutilated F. R. Notes forwarded for redemption - -

1,463,600c00
5,805,170*00
1,498,500.00

1,032,150.00
4,878,790o00
807,600o00

Bills discounted - - - - - - - - - - - - - - - - Member banks collateral notes - - - - - - - - - Bills bought in open market - - - - - - - - - - participation in investments through foreiga banks
I * So Government securities - - - - - - - - - - T
Municipal warrants - - - - - - - - - - - - - - - Federal Intermediate Credit Bank Debentures • - »

2,015,359-,61
2,479,903.00
21,791,873.67
27,469054
10,907,311.00
60,000000
l,675,000o00

1,481,495.06
423.800.00
18,310,951.40
7,661,67
23,899,711.00
120.000000
500,000o00

Premium on I . S. seou. & Fed. Int. Cr. Bank deb 0
f
Interest accrued - - - - - - - - —
- - - - - - -------- Expense current - Furniture and equipment - - - - - - —
- -- - Dividends accrued - - - - - - - - - —
- - -Transit items............. - ..................
Exchanges for clearing house ---- - - — - - - - Checks and other oash items - - - - - - - - - - -

3,766.87
74,546*36
1,000,474.46
32,027.65
181,202o86
14,007,387.19
279,756.38
79,374.52

3,964.64
70,780,75
1,048,746.15
10,784,93
180.726.51
1 * 148,801.41
3,
900,611o27
80,330.11

505,520 o66
l,418,281c50
636,162,54

505,620 66
1,918,281«60
636,162.54

918.46

19,654,65
&23o66

938*00
51,22
19,625.76
2,380,695.42
42,908.46
779,498.01
14,654 32
639062

1,782 *14
146d3
218.88

l,762c94
2720
25
196.05

Banking House:
jfBnM — — — — — — — — - — — — - —
Buildings including vaults - ------ ------- Fixed machinery and equipment - - - ---- - Overdrafts - - - - - - - - - - - - - - - - - - - Coupons paid before maturity-------- ---------Deferred oharges - - - - —
- - - - - - - - - - Claims account closed or suspended banks - - - Property acquired under foreclosure - - - - - - Suspense aocount temporary investments - - - - - Due from foreign banks - - - - - - - - - - - - - Difference account - - - - - - - - - - - - - - - Fiscal Agency expenses, reimbursable - - ------ War Finance Corporation expenses, reimbftorsable - ~
Reimbursable expenditures - p o s t a g e ---- .
---- -




17,098.40
2,015,643.22

♦157,569,174 e36

$161,494,705.55

1

COMPARATIVE STATEMENT OP

LIABILITIES

FEDERAL RESERVE BASK OF MINNEAPOLIS AHD HELENA BRANCH
Deoember 31. 1928
Federal Reserve note* outstanding............- - $72,677,520.00

|

Dgoember 31. 1927
66,910,565.00

Member bank* - Reserve aocount ---------- - - - Funds of closed banks held for reoeivers
and others-------- ----- ------- - U. S. Treasurer - General A o o o u n t ---- ---------Due to foreign banks - - ................ ......
Non-member banks - Clearing a o o o u n t ------ -----Officers* checks.... ...... ...................Federal Reserve drafts - -------- ----- ------Other deposits - .................................

56,067,106.75

54,723,922.95

107,625.72
946,677.53
175,638.41
23,385.08
191,045.74
4,100.00
6,362.35

112,105.80
1,770,529.94
138,847.84
43 739.46
197|090.00
31,000.00
2,309.63

Government transit items ....................... All other transit items .........................

147,710.63
12,931,860.06

161,423.09
12,848,793.26

Accrued taxes other than franchise tax unpaid - - Capital stock suspense aooount - - —
- - - - - - Sundry items payable.............................
Suspense aooount general -------- ------------ - -

126,064.29
1,600.00
7,626.57
6,277.48

83,702.14
8*100!00
l ’6l3.6S
,
12,913.10

Discount on U.S. seourities - f ---- ------------Unearned d i s c o u n t -------- ------------------ - -

16,926.43
124,967.86

18,660.79
63,688.11

Reserve for depreciation on
Reserve for possible losses
Reserve for depreciation on
equipment Reserve for depredation on
equipment Reserve for depreciation on
Reserve for depreciation on

3,444e00
596,102.62

3,444.00
604*378.39

198,439.58

136,434.23

9,596.23
76,996.89
73,218.74

7,985.33
71,331.26
70,518.74

- - ..........

1,404,264.30

1,511,025.69

Discount earned ....................... ........
Interest earned —
------ - ---------- -- - - - Penalties on deficient reserves - - - - - - - —
Miscellaneous earnings - - - - - - - ........ .

1,100,286.68
583,760.62
7,763.14
18,493.72

652,509.01
754,339.91
13 404 64
69,'777.’93

f.to f.f/

38,233.91

3,008,600.00
7,038,563.06

3,009,400.00
7,527,027.95

U.S. bonds - —
—
—
aooount failed banks - fixed machinery and
Minneapolis-------- fixed machinery and
Helena---------- ----building - Minneapolis building - Helena - - -

Special credit aoootint dosed banks

Profit and Loss

- - - - .........................

Capital stook paid in - - - - - - - - - - - - —
SurPlu* ........................................ %




♦157,569,174* 36

#151,494,705.66

2

m im
sxm m t pi m

m

m J M S J S 09 s s L m .m

h

Bis count earned on bills discounted - Minneapolis..........$
Discount earned on bills discounted - Helena Branch • • . « *
Discount earned on bills purchased . * t . . . » • ' » + « «
Interest earned an United States Securities # V ‘ V ' V . > •
V
Interest earned on Federal Intermediate Credit Bank Debentures
Interest earned on Municipal Warrants » • . » » ! * » • • « *
Interest received on past due paper of closed banks » . * , ,
Intereet earned on delayed wire transfsrs . . . . . . . . . .
Deficient reeerve penalties - Minneapolis . ................
Deficient reserve penalties * Helena Branch............
let profit on tfeited States eecurltlee sold •
• * • * *
Participation Is transactions with foreign banks . « ♦ . . *
Sale of lasts Paper
o « o
•
Service charges on collection iteas returned * Minneapolis »
Service charges on collection iteas returned « Helena . . . .
Clearing house fines . . . • • • • ............ . • . • . «
let eoaalsslons on hall insurance •
......... .
Bxpense Current * Minneapolis * ........* . . ............
*
906,212.77
Expense current - Helena Branch...........................
94*261,69
furniture and equipment * . o . . . . . . . . . . . . . . . *
32.026.65
Beeerve for depreciation on. fixed machinery and equipment8Minneapolis « • • • . »
62,005.35
Helena Branch. « » » « »
1*610.90
Beeerve for depreciation on building - Minneapolis * . . . .
25,665<,63
Beeerve for depreciation on building - Helena Branch . * . .
2,700000
General differences • Minneapolis
lo42
Tellers and coupon differeocee - Minneapolis . . . . . . . .
534.88
Clearing dlffereneee - Minneapolie.................... .
5*93
Collection differences - Minneapolis . . . . . ...........
transit and return Item dlffereneee « Minneapolie . . . . . .
Transit and return itea differeocee - Helena Branch . « . . .
Tellere and coupon dlffereneee * Helena B r a n c h ......... •
41.38
Recovery of expeneee incurred in connection with cloeed banks
Salee and allowances of old furniture and equipment
Transit Iteas which could not be charged back to our en­
dorsers account failed banks . . . . . . ♦ * « .
809,00
Recovery of transit iteas charged off prior to 1929 « o « □ *
Protect fees absorbed on traneit Iteas account failed banks .
1.54
tecovary of protect feee on transit items . . . . . . . . . .
Difference between amount allowed and amount recovered on
uncurtent coin . . . . * * . . . . « . v . « .
Adjustment of Interest earned during 1927 on Do So securities 0
179.74
Rebate of taxes paid in 1922 for Street Improvement #57 . . .
Settlement of claim by ffcraere Sato Bank of Brookings. S0D. «
91034
Dividend on eoployeee group life insurance policy (2/3 of
dividend for policy year ended May 1. 1928) .
Recovery of telegraph chargee at Helena from tee tern Union
Telegraph Co. . • 6 . . . . . . . . . . . 0 .
.
fet loss on sales of United States securities through
Special Investment Committee . • • . . . . . .
51.248.45
Shortage in amount of coupone received from U m a r s Rational
Bank, Minnesota Lake, Minn. 0 . . . . . . . *
25*00
Recovery of costs and*tatuttfry legal feee in caee - Piret
State Bank of Hugo, Minnesota . . . . . . . .
Post dated coupone charged off .......... ................
58.16
Received from Rand Holding Company for their intereet in
federal Reserve-first Rational deep sewer . •
Withdraw* from reeerve for possible lossss . . . . . . . . .
Reserve for self Insurance . . . . . . . . . . . . . . . • .
350^000.00
Dividends paid . & o o»« * . © o .
181.202.86
Transferred to Surplus fund (10£ of balance of net earnings)
43.350.06
franchise tax paid to United States Government ($o£ of balance
of net earnings) . < > • . * . . . . . . . . .
39QA15Qa$8




484,569.00
6.182.39
609.535.19
512*433.11
26.681.57
373.60
44.225.68
46.66
5.783.09
1.980.05
6.669.38
11,160.98
193.26
160.75
22.05
106.00
181.30

1.50
65.41
9.04
35.112.26
3.249.38

36.30
3.39
58o09
6.63

2.841.72
475.27

168.86

851.42
289*000.00

& 0 >18.183.33
*

2

3

suwusT 3E?oai or ubiisqs, n m s t s aid

r
aam..m loss iocoror pqbiis me.

Saratoga.............................. . .
Current expewe* ...........................
Current net earning* 0 » o » ......... »

$ 1,710,304.06
1.000.474.46

Addition® to current net earningss
Withdrawn from reserve for possible losses $
otner o o o < t « a • o < 6 » o • e # «
» >
>

$ 709,829<,60

289,000*00
879a27

... 531.879.87
$ 1,041,708.87

Deductions fros current net earningsi
fieser^e for self insurance 0 « « • 0 . « « ♦
25Qs000oQ0
2$ Bessrve for depreciation on buildinge*
Minneapolis building • / • • • * < ;
259665*63
Helena building
2,?00o00
10# Reserve for depreciation on fixed nachinery
and equipasnts
Minneapolis building • . . . « • •
62»0p5o36
Helena building
l«610o90
Furniture and equipswnt 0 . » - . . . . . ,
32,026*65
A 1 other < < o o » o o o o « o o «
,
> >
« « c
58«99Sa 84
Total deductions ..................... . •

.

- M z .m

■•

Bet earnings available for dividends, surplus
and franchise tax , , , , e
,

Dividends paid o e o » « o o p * • * • • • « < >
Transferred to surplus account „ . , * . . , *
Franchise tax paid to United States Government




I

161,208.66
43,350.06
-_ 390.150,58
_
iZ J g ig s & B

<
e

■

ftS K H L BTfifiTI n * * °F
m

m

w * Q> w

f

kWf)

m

m

8- n m s l 8
y oyiy
siici ( M m i m m „

2SrniBg& b c * * » « • •* k « o
bpialll o

Q?SL8&I^«

Vet earnings before depreciation

ADDITIONS TO SAHVIVGS
Withdrawn from reserve
Withdrawn from reserve
Withdrawn from surplus
All other a o
TOTAL ADDITIOVS

I

for possible losses o « * * o $
for depreciation on U»S0 bonds
to reduce book value of building
0 . .......... *

lc353fg^fe
l

DIDtJCTXOVS PBOfc mt l H G S s
Reserve for self insurance
Bank premises depreciation » • • • • ' * • • « • « » •
furniture and equipaant (Including $40D000 for vault
in Hew Tork Life Building)
Reserve for possible loeses o o » « o o o « o » » »
Reserve for depreciation on Do So bonds „ 0 * « < *
>
Expense o o o « « o o « «ic004Q7«
’
Income
9$| &Sp6ft&9 o e o c i e o o o o o o o o o o
j*L 0tlld? O O O o > 0 0 0 0 * ? 0 0 0 0 0 0 o o o o o
tJX
TOTAL SXD0CTZ0S8 ............ . • • . • . .

Vet deductions o

6 <>*»•»*

$
iBS05t,840
458,839
146*913

.

♦jfigPa.3j

mm
m

«<»<* •<>

Vet earnings O < r « < » » o 0 o » * < » o . o v o * . o o
Distribution of net earnings?
Dividend t paid
^Transferred to surplus o o «
franchise tax paid to JJ0 So Government

«
▼
« « *

♦ Vet after deducting $500*000 on December 31, 1927 to reduce
book value of building *




16*774*831

3

U v r ^ L 1 PAID Slid o M M i t t f i w . - n . m u

1916
1917
1918
1919
1920
19a
1922
1923
1924
1925
1926
1927
1920
Total

$

¥
»

o

QT St f l L S
TfPP

5?.719.8?
363.894.19
168.103.97
180.186.31
195,870.68
211,667.03
813,774.01
313,733.68
303,837.98
193,569.46
187.609.35
180.736.61

$ 3.549,863.67

S M C * QB^AMTZAflOl

January 4» 1918 Tranaferred to Surplus froa Profit and Lota
December 31* 1918
froa Heserve for franchise fax
March 40 1919
to Surplus from Profit and Loss
Juno 30* 1919
December 31u 1919
June 30o 1920
December 310 1920
June 30 o 1921
December 31, 1921
December 31, 1922
December 31* 1923
December 31* 1924
December 310 1925
December 31* 1926
December 31* 192?
December 31* 1928
Total

$

37,600o00
688*871083
688,871*83
904,357 40
1,249,399,04
l,609v24156
1*801, 706 54
323*121 95
165*407o67
56*892.10
H 2 7 3 25
12.627 39
4,139.45
26.042 32
11535 10
o

-----------------4

3

«

3 5

Q ft

0 6

$ 7,634,336*47

Lasts
December 31* 1922 Additional franchise tax
paid for the yeare 1920 and 1921 „ * < $ 52»423<>36
>
December 31, 1927 withdrawn froa surplus
to reduce book value of building . , * SQQaQQP.QO
.
Balance in aurplut account December 31* 1928 « Q 9 . . . . .

..

^ js s h m » s &

$ 7#081*913oll

SWfflHOT OT TOTAL TBUTOBISI TAX PAID 813CI mflAIIUMOl
December
December
June 30,
December
December
December
December
December
December
December
December
December

31, 1918 Transfer from Profit and Loss
310 1920
■
"
1
1921
■
»
B
31* 1921
■
*
»
31s 1922 Transferred on account of underpayment
years 1920 and 1921
31* 1922 Transfer froa Profit and Loss
5X0 1923
31, 1924
31* 1925
31* 1926
£lt 1927
,
31, 1928




379500o00
524,233.58
1,284,497.62
1 1 6 6 468o98
52 423 36
512.028., 98
1010450<>25
113,646 58
37*255*04
234.3800 91
103,815 90

FRQ.I f m

LOSS

At the clou of 1928 we transferred to the Treastirer of the
United States as a fJraaohiee tax an amoiait greater t>in for t - three
'
previous years combined.

The amount remaining after payment of all ex­

penses and dividends and charging the authorised depreciation allowances
on Bank property, was $433,600*640

Of this amount $43,350.06 vas added to

Surplus Account and $390,160* 68 paid as franchise tax*
The current transactions of the year resulted in earning# of
$1*710,304*06 or $320,272*57 more than the current earnings of 192?.

Credits

direct to Profit and Loss Account were ouch less in amount during the past
year while direct charge* to Profit and Loss were heavier than during the
previous year*

Under instructions fro* the federal Reserve Board the net

loss on sales of United States securities mpde through the Special Invest­
ment Committee have been charged direct to Profit and Loss*

Losses of

this character charged la 1928 amounted to $5i,248o45 and were the direct
causs of our showing a net loss in Profit and Loss Account of $9,609.91
covering miscellaneous credits and debit* to this account during 1928*

On

sale* of United States securities through the Speolal Investment Committee
in 1927 there was a profit of $l3,288o43a
Recoveries of expense incurred prior to 1928 at closed banks was
$3St112o26 or nearly $4,000 more than the amount received in 1927,

Xntereat

received on the past due paper of closed banks was also greater for 1928,
a total of $44,225*68 being received in comparison with $37,337*22 received
in the previous year.
Sales and allowances of old furniturs and equipment during 1928
amounting to $3,249*38 were credited to Profit and Loss*

The 1927 pro*

portion ofA premium on our life insurance policy covering employees and
amounting to $2,841*72 was also oredlted direct to Profit and Loas*
In addition to the Income from various sources placed in Profit
and Loss Account, wo transferred,un&er federal Reserve Board approval, frotr
the Special Ressrve for Losses to Profit and Loss Account the sum of
$289,000o

the amount carried in Special Reserve had been $614,000 and our

Sxecutive Committee felt that $325,000 would be an ample amount to hold in
reserve*




Including currant income miscellaneous credits direct to Profit
&nd Loss and the transfer referred to above, total credits to Profit and
Loss Account for 1928 amounted to $2,042,183*33,

the disposal of this

amount mas ae foil ore*3
SBHEUBBaaBBB
Minneapolis
Helene

$ 906,212,77
$\.OQO0474o46

A comparison of the above costs at Minneapolis and Selena with
192? costs will ehow a reduction in 1928 at Minneapolis of $500725o28 and
an increase at Helena of $2,453,59,

The reasons for lncreaeee and de»

creaeas will be fully discussed under the Kxpense claesification in this
Beporto

Some conditions have favored a reduction in 1928 expenses when

compared with the costs of 1927c

The present outlook is for a greater

expense total at Minneapolis in 1929 than was necessary in 1928,

At Helena

there should be a small reduction in 1929 expenees.

"WWWffll ^
Nlua M po lU
Halos*

$

F ° W pltMT-

99.936.31
8.090.34

*

33.086.68

furniture and equipment costa in 1928 are auch higher than a
normal year9e requirement Should be

Considerable transit equipmsat will

be necessary during the coming year, after which approximately $15*000
yearly should cover our neede.

The estimate for 1929 is $24t586o

f m m t m j m m m a i .Q L n m

m m

Minneapolis
Selena

$

62,005,35
1.610.90

$

63,6l6o85

The amount reserved is 10 par cent of the actual eost of fixed
machinery and equipment plus $100*000 of architects fees allocated to thie
account under federal Heeerve Board approval*

Total reserves accumulated

to data are $2600444o93 for Minneapolis and $11,207,13 for Helena,

lo

replacements have bean charged against the amount reserved for Minneapolis
and only $69,17 has bean token from the reserve for Helena,,

Selena property

account and the reserve account a are carried on the books at Minneapolis,




m m i i j m - v m m u i i & i fm i m

Minneapolis
3dX0Q^

I

25,685.. 63
2*700,00

buildim

$ 28* 365,, S3

Oor Minneapolis building is carried at $1,283,281050 which ie
also the replacement wmlm according to the valuation msthod adopted by the
Federal Beeerve Board,

On the valuation etated we are authorised to set

aside 2 per cent yearly as depreciation*

it the close of 1928 depreciation

account for the building amounted to $102,662o52o Approximately $600,000
additional should he written off on the building to bring this account down
to realisable value*
Depreciation reserves set up for the Helena building now amount
to $75»918«?4 with the repiaceoent value of the building placed at $136,000,
A further reduction of from $40*000 to $50,000 would be necessary to bring
the book value down to a possible sale value*

(Debit)
Minneapolis
Helena

$

476.32
.

♦

507 66

Total differences are less than in 1927 when $675,93 wae charged
otto

Ae usual the major part of the shortages have occurred in the cash

with $534o88 written off for tellers9 differences at Minneapolis and $41„38
0

to Profit and Loss*

The aaount charged off ie not large considering the

volume but the record of shortage* indicates some inefficiency in currency
sorting*

Phlted States 8oourltl«s
In v e n a ^ Coaglitee
$61,248.45
the above aaount is the aggregate of losses assumed by us on our
participation inthe Special Investment Account handled by the Investment
Coamlttee at Sew Torko

At the cloee of 1927 our investment in Halted States

Securities through the Investment Committee wae $16,342,000, while the
total held on December 31, 1928 wae $3,322,500*

We have no means of knowing

what proportion of our present participation was purchased prior to 1928
but any losses to be charged in 1929 should be smsll*




9

n w m j p B

afr-F f r y ™ * * *

Soma years ago there was considerable discussion advocating the
setting aside of funds out of earnings against which the various typee of
losses migfrt be charged instead of paying heavy premiums yearly to fidelity
companies for assuming these loasee0

Apparently the particulars of a plan

for self insurance are soon to be offered*

Pending the final outcome of

such plan the Federal Be serve Board has authorised us to set aside the sum
of $250,000c00o
DIYIB8SP8 PAID

$181,2020 86

Average capital stock holdings were slightly higher than during
1927 although the total capital stock paid in on December 31, 1928 of
$3,008,600 was $80000 less than at the close of 1927,

The average capital

stock holdings of member banks la 1928 was $3*080,000 compered to $3,018,100
• * “eased each year for the past fifra
s.
*2? amountsd to $180,726,61-,

Sitae

organisation the amount of dividend paid has been $2,549, 863,67,

m

x m

m

n w w t - m

After charging against Profit and Loss all expanses, paying tbs
regular dividend and setting aside the reserves approved by the Federal
Beserve Board, there regained in Profit and Loes Account the sum of
$433, 800p64o

Of this amount 10 per cent ct $43,350*06 wae transferred to

Surplus Account and 90 per cent or $390,l50o58 oredited to the Treasurer
of the United States as a franchise tax,




Total Surplus from Barnlngs since organisation
Total Franchise Tax payments since organization

$7,581,913oll
4,557,85l»78

OOMPABATITO STATE!ffi!ST Of (TROSS BtBTTTHflg
TO?EHAL HBS8HTB BA3TK OF M1BHBAPOLIS ABD HBXgHA BBJBCB

Earnlcga Troa

Minneapolis
_ 1 2 S _

Discounted Bills
4
3^569 00
Purchased Bills
609. 535.19
United States Securities
512.433,11
federal Intermediate Credit Bank Debentures
2606gl 57
Municipal Warrants
373 60
foreign loans on gold
iiuxialmMX reserve penalties
5.763-09
J.'Acome from banking: house
Interest received on past due paper of closed banks
44,225,68
Interest on nonourrent fnada9 delayed wire transfers etc,
let profit on 0. S 0 securities sold
6. 669,38
Participation in transactions with foreign banks
11 ,160,98
Sale of canceled stamps* waste papera money bags
193=26
Service charges on collection items returned unpaid
160.75
Monthly letters sold
Clearing House fines
106.00
Bet consulsaion on hail insurance
______________
total - "Rings
,




$1 ,702 ,
072,91

Helena Branch
1928

Combined

1928
^90,751.0 39
609.535.19
512.433.11
260681„57
373,60

/

1.980 05

7.763,14

46,66

44,225.68
46,66
6.669.38

ll.l6o.98
22,05

193.26
182.80

Oomblmd
..m i

Combined

1926

192.2l6.06

10,423.71.

360.292.95
707.598.94
8,808.97
594c78

J.5U .44.
723.347.4^

13,404.64

15«00

16,567 66
385.50

51980, 29
.
16 , 473.12

•37.337.22
69.64

116,434 12

22. 268,17
ICT.19

24,533
1^928.22
250,28

142.79

,

73

106 00

____ 181,30
$8, 231.15

25.13

97.00
1.179.56

220 29
29,09
174,00

$1„710,304,06

$ l,390t
031.49

$ 1 682,332.64

MM

Barniags from!
Discounted bills o « o o o « 4 „ o „ 0 o o «
.
'
Purchased bills 0 . « 0 * , , « ,

$ 49O0751 o39
609,535*19

United States Securities
.
federal Intermediate Crec i Saak: Drebeafcures
;
Municipal Warrants
«,,„oa • • • * . . €
Deficient Beserve penalties , , • • * < * a
>
Miscellaneous o o <»q o o , o , * , q ^ a «

26»681o
5?
373*60

7,763,14
« ^6iL7§6J2fe,.

Total . . . a , . . , * , . . . . . - , .

$1,710,304006 $le390703l349
142,525,34
83,372.87
59,152*47
15,100.24

116,835,96
87,395.51
28*440*45
I5,060o54

i 6749c, 34

2,843,11

23a 50

Monthly average of gross aarniags , « o * « * • «
Monthly average of current espeases « 0 * » „ * Monthly proportion of operating profIt© * * . • «
Monthly proportion of dividends paid , * * * . .
Monthly proportion of original cost of federal
Reserve notes including shipping charges to us

llo 33

Bate per cent of current ast earnings on paid
Capital 8tock • • • • • » • • • • • • • • • • • ,

Bills Dis­
counted

U„ S.

Bill®
Purchased

Federal Into
Credit Bank

Securities

192,216*06
360,292,95
707,598,94
3,808,9?
534o78
13,404,64
iSLUSalfi

Municipal
Warrant■

Total

Pebrotarea
1928

$ a . 199.883

Bills Dis­
counted

1928
1927
1926
1925
1924
1923
1922
1921
1920
1919

4,382$
30937
4,000
4,030
4,468
4 0502
5,119
6.479
6,223
4.381




$15.354,9X3

$13,701,741

Bills
Purchased

U» So
Securities

3,970*
3,412
3,548
3,245
3,720
4,125
«
*
»
6.087
5,259
4,267

3,740*
3,581
3,850
3,841
3,899
4,250
3,427
2,055
2,016
2*460

Discount
Discount
Discount
Discount
Discount
Dlsocm**
Disco wat

rata
rata
rats
rats
rats
rata
at#

(6 8 8 ,8 0 3

federal Ia„
Credit Bank
Debentures
3,885*
3,654
3c 827
«
•
•
o
»
-

$ 8,784

Municipal
Warrants

4,253*
3,722
4,000
4,000
4.374
4,500
4„752
5o 807
-

effective January 1, 1922
lowered January 11,1922 to
lowered August 16, 1922 to
lovsred October 14,1924 to
lowered September 13, 1927 to
ralaad
February 8, 1928
to
r*i*ed
April 26, 1928
to

foreign
Loans on
Gold
- *
•
4,500
3„ 569
3,000
•
*
-

$40,952,128

Total
Barnlng
.. .Assets.
.
4,004*
3U 530
3c 793
3,651
4f084
t
4,411
4,640
6,091
5*755
4,114

larned at Minneapolis

$l#702,072*91

Sarned at Helena

$3,231,15

Our current incoma during the past year has materially exceed­
ed the income of any other year since 1923*

Zn 1923 our total income was

$1,749,253o46, the major portion coning from advances to our member banke0
Sine© 1923 we had to depend on purchases of bankers bills and investments
—

1

States securities to cover our needs®

for several years prior

to 1928 we had requested extra allotments through the Special Investment
Committee at Hew 7ork to make cetain of the needed income,,

During 1928

this h s : not been true as bills from the portfolios of other Federal He*
a?
serve Banks have frequently been offered us«

In addition, the income

received from discounts of our own member banks has more than doubled such
income received during the previous jwar,
from p’ District was $345,2690Q&,
or

In 1927 the income received

lor the past year similar income has

been $558,639012*

Of the total profits in 1928, 32*7 per cent originated

in this District,

In 1927 the proportion obtained from our member banks was

1706 per cent of the total0
through our holdings of United States securities and our par**
ticipation in purchases of bankers bills and United States securities by
the Investment Committee and other arrangements of the Bee York bank, we
obtained an income during 1928 of $1,151,664,94 0r $7,000 more than was
obtained from similar sources in 19270

The increase in our total earnings

may thus be attributed to a broader demand in our own District*

from

purchased bills our 1 scorns of $609,535.19 was greater than for any previous
year and $249,000 more than received from purchased bills in 19270

Ike

interest received fro® United States securities during the past year amount-*
ed to $512,433011 and was less than for any previous year since 1922*




Ihe following table show* our income and the source for the
peat four yeara8

Income from District

A9 ??
- .,
-

JS2Z

192(5

1935

Discounts for ambers
$ 490,751.39
Warrants
373.60
Penalties for deficient reserves
7,763.14
Interest on paat due paper of
eloead tank*
44,225.68
Interest on delayed wire transfers
46.66
Miscellaneous
663.36
Interest on federal Intermediate
Credit Bank Debentures (St.Paul) 14.813.89

$193,216.06
594,78
13,404=64

$810,483.71
383; 50

$231,341.87

160473,lS

180.74
17,414.50

. 37,337.22
69.64
1,646.6?

116,434.12
S3.96
673,66

36,652.70
182.88
778,08

$558,639,12

*245,269,02

$444,464.09

$286,544.74

is s s m Jx s m n t h w t District

Discount froa Purchased Bille
$609,535.19 $360,898.95
$405,511,44
$440,783.93
Intareat on 0, 3, Seeurltiea
518,433.11
707,598,94
733,347.45
676,696,33
Internet on federal Intermediate
Credit Bank Debenture*11,866.38
8,808.97
16,567,66
°° °?14
5,980.39
11,111.70
1st Profit on 0.8.Secnrltiee sold
6,669.38
45,793.45
34,533.49
19,599.18
Participation in transactions with
Foreign tanks
-.U J £ h 2 L .---32.868,17
1,938.22
3.606.41
$ 1,151,664.94$1.144,763.48 $1,177,868,65 fl,151>?96 54
Prior to 1928 our chiof scores of revimu for i«T«rtl yeare
boon through holdings of United States securities,,

Zn 192? the interest

received on United States securities vti $150,000 greater than tha coabinsd
profite froa discounts and bankers billSo

During 1928 the income froa

United States securities exceeded slightly the incoas froa member bank discounts and was approximately $100s000 leee than the ineoae received froa
;
purchased biliSo
Chare see practically no change during the year in our permanent
investasnt account* $27,200 in bonds and notee being added, asking a total
of $7,584,810 held on December 31* 1928*

0or participation in the System

Special Investaent Account however, wae reduced froa $16,342,000 on December
31, 1927 to $3,222,500 at the close of 1928*

In connection with the re­

duction in our holdings through the Special Investaent Comalttee, we cterged
off In Profit and Loss Account $51,248*45 covering the depreciation in the
value of the securities soldo
Other investments carried on Deceaber 31, 1928 were Federal
Intermediate Credit B*nk0 St, Paul, debentures to the aaount of $l05750OOOo
©
One year ago debentures of the Ousha bank to the aaount of $500,000 were




held*

The average dally holding# ©f Baited States sectritiee la 192#

were $13,^03*000 carried at an average rate of 3 .H O p#r cento

In 1927

we carried a daily average of $19*759^0 at e& average rate of 3
With the exception of 19$?0 rates obtained oa holdings of

per cento

United States securities since 1922 have been higier than in 1928„

Our

1928 earning rate oa United States securities however, increased from
3*474 per cent in January to 4o035 per cent for December*
Bankers bills have been a steady source of Income throughout
the yearo
bill So

At the close of 1927 we had received special allotments of

In March the average monthly holdings had been reduced to

$12,008,000*

Zn May average foldings were $20*006,000 falling gradually

to an average of $9,958.000 in September

The hi£i average for the year

at $21s0260000 was reached in December and there is every indication that
holdings will be high for some time to come*

From an average rate on

acceptances of 3a151 per cent in January, the rate increased to the high
average of 4a626 per cent in Vovember»
tained was 4*579 per cento

In December the average rate ob­

the daily average of acceptances held in

1928 was $15,355,000 in contrast with $10p560^000 held as a dally average
in 19276
Daring the firet quarter of 1928 the daily average of accoosodatione extended member banks was less than the $4,822,000 daily average
of member bank borrowings in 19270

The highest daily average over a month

period in 1927 was $6,960,000 for May0

Since March 1928 this average has

been exceeded in every month with the higjh average reached in August at
$18,349,000o

The daily average for the complete year vat $11 ,200^0000

Until February 8, 1928 a discount rate of

per cent prevailed,

From

February 8 to April 25 the rate wae 4 per cent after which the 4j per
cent rata was made effective and ie the present rate0

The net result of

the rate changes brought about an average rate for the year of 40382 per
cento

fills rate is an improvement over the three previous years and

compares favorably with the average rate of 3*937 per cent earned in 19270
Income from purchases of Federal Intermediate Credit Bank de­
bentures brought Income of $26,681057 during 1928,

These purchase* lave

been mostly to accomodate the St, Paul Intermediate Credit Sank,




At the

close of the year we held $1,5759000 in debentures of the Ste Paul bank
maturing February 15, 1929*

Of this amount $500,000 wag taken on a 4|

per cent basis and $1,075,000 on a 4 $ per cent basis.

Income received

on debentures of the S%a Paul bank in 1928 amounted to $14»315o29o

Other

purchases made from the Oasha, Nebraska and Columbia, S0 0C banks produced
income of $ll,866o28,
Deficient reserve penalties have for a number of years ceased
to be a factor in our income*

Through improved conditions, as well as a

batter understanding of requirements, penalties have decreased each year*
for the complete year 1928 we collected penalties at Minneapolis of

$5,783*09 and at Helena $1,980*05*
Miscellaneous earnings during 1928 have totaled $62,766*06 the
principal item being interest received on the past due paper of 20 cldsed
banks aaking final settlement and amounting to $43,149*71* Xn addition,
there was credited under this item the s m of $l,075o97 received as intere*
on direct advances msde by us to protect our interests.,

During 1927, 26

banks msde final settlement and paid us $37,337023,
S<
On purchases and sales of United States securities arranged for
our member banks during the year, we obtained profits of $6,669»38o

Vo

commissions are charged for service but on all purchases made for a member
bank we take the interest on the security until payment is actually received
by us0

On sales arranged in connection with which we give imoedlate credit

to a member bank, we retain the interest on the security until the purchaser
makes suitable payment a

Transactions of this character in 1927 brougit

Interest of $10,629o76.
Oar participation In transactions with foreign banks arranged
through the Investment Committee In lew Tork, netted profits of $11,160„98
for the year and onavhal1 the amount of such incoms in 19270

Commissions

on bills and securitiee purchased for account of foreign banks amounted
to $6«966o60«

Our share of the commissions received for credits granted the

Bank of Italy and the Bank of Poland was $2,733u75.
'

Interest on balance with

Bank of Sngland Amounted to $242„08 and profit from resale of notes
of foreign correspondsnts added $1,228.55 to our income.




16

Receipts such as clearing house fines, sales of waste paper,

service charges on returned items* interest on delayed wire transfers and
net commissions on hall insurance placed through our representatives* msde
up the balance of the Miscellaneous earnings total*
For the year 1928 our dally average holdings of all classes of
earning assets was $40,952,000 or approximately $10*000,000 more than the
average we needed to cover all requirements*

In 1927 we had estimated

that we would need average earning assats of approximately $36,000,000 to
cover aeedSc

While expenses were lower In 1928, the higher earning rate

removed the necessity for the same volume of earning assets required in
the previous year«>

Approximately $26,700 more was earned each month in

1928 than in 192? in addition to an average monthly reduction of $4000
in 1926 expenseso

After deducting from Gross Earning* our (torrent Expenses

only, the net represents a return of 23«50 per cent on paid-in Capital
Stocko
Stock*




The similar net In 1927 returned 11 33 w

cent on paid-in Capital

COMPARATIVE STATEME8*
CURREHT EXPENSES OF THE FEDERAL RISERVF; B A M Of MINNEAPOLIS AMD HELEHA BRANCH

Minneapolis
_____ i m ____
Salaries%
Beak Officers
Clerical Staff
Special Officers and Watchman
All Other
Governor* 0 conferences
federal Reserve Agents* conferences
federal Advisory Council
Directors meetings
♦Traveling expenses
Assessments for federal Reserve Board expenses
Legal fees
Insurance (other than cm currency & security shpts)
Insurance on currency and security shipments Taxes oa hanking house
Light 0 heat and power
Repairs and alterations hanking house

$ 10f f500o
c
00
315.750.*?
2&,321o7&

62 .035.52
687.30
587.23
1,149.67
6,l4o.43
I 8 . 207.21
I 8. 930.68
26,038.72
27.192.51
12,462.5*
84,300,00
15,753.94
5,349.81

Rent
Office sad other supplies
Printing and stationery
Telephone
Telegraph
Postage
Szpressage
Cafeteria (aet expense)
Miscellaneous
Total exclusive of cost of currency
federal Reserve Currency $
Original costB Including shipping charges
Coat of redemption, Including shipping charges

, .
, .

18 027
16 890
4,530.7*
10,950=06
56 ,143.75
7.939.69
5.989.07

Confined
1927

Combined
1926

117,503.16
350.451.88

$ 129,360058
357.8^.06

• 652.98
1.939.19

65o§35.52
687.30
587.23
1,149.67
6,793.41
20,146.40

$ 135,680.56
357.223.51
25.958.29
80, 090.43

210,25
1 , 112.53

i08oo.oo
3,706.63
1.699.97
2 . 006.27
1 , 616.23
2 , 306. 1s

27, 838.72
30,899.14
14, 162.51
86, 306.27
17. 370.17
7,655*99

1,375-43
2.479.59
589.25
6.867.37
7,736.66

19,402.48
19,369-73
5,120.03
170817.43
63 ,880.41
8 398.73
>989.07
Hi!
977,972.55

25.2j»j
1.013,146

20O
992.08

34=117

____ 192
B
$ 13 , 003,16
34.701.39
5.640.00
3 . 600.00

90,00

459.04

-32,832.

883,710

94*ll^9

20,992.08

I 906c212.77

29.96l .74

18,
930.68

90.00

l„50q.87

JL 22S L SS

•Other than those connected with Governors* and Agents'
Conferences and nestings of Director* end Advisory Council,




Combined
1928

Helena Branch

$ 94,261o69

* 1,000,474.46

28,624.14
79.064.75
443.59
7,445-79

28.057.79
23, 136.58
27.493.76

29,101.61

13.391.45
85,643.05
19,561.84
9,390-90
19,901.38

25 .322.45

5,3 o4.<»
19.971.66
61,876.25
8,4l4

568.38
288.03

824.34
7,288.54
35,221.58
22. 595.76
30.701.29
28. 245.90
14,090.66

82 ,713.11
19. 761.76
4,540.47

19,725.21
25 , 568.08
5,816.19
23,277.28
64.J72.63
8 , 436.68
8,314,

1.482

$ 1,048,746.15

26,495,

1,027.798.59
33.597-38
2.361.23
* 1,063,757=20

ITEMIZED STATEMENT SHOWING- AMOUNTS INCLUDED

Rental of furniture and equipment
Repair* and maintenance of furniture and equipment
Outaide protection, vault inspection, time service, etc.
Outside cleaning servicest enter supply, and other misc. bank?g bouse expense
Licensee and permits
Local transportation— car fare
Local transportation— taxi M r s
Poet office box and postage-meter rental
Veespapars9 bocks, binding, etc,
Collection charges and protest feee absorbed
Clearing bouse Membership dues
Clearing boose fines
Supplies furnished member banks
Copies of bank examination reports
Gewnorrl nl agency credit reports and services
EmpXeyees3 photographs
Medical serrice and physical examinations
Entertainment of bankers and others
Officers8 dinners
Employees* dinners
kp.lqrws* education: American Institute of Banking
All other
federal Reserve Club
MeabersMp dues and donations*
Amsrlcan Bankers9 Association
State and other bankers9 associations
Credit men s associations
American Acceptance Council
American Society o f Agricultural Engineers
f
Tain City lank Auditors* Conference
Tax Payers1 Association
Minneapolis Police Benevolent Association
International Sheriffs0 A Protective Officered Association
Minneapolis Tire Department
Christmas Donations
Discount on foreign currency
Miscellaneous expense closed beaks
Abrasion on gold coin
pro rata share expenee of exhibit at A*B JL. Convention
Valuation of bank premises by R. E. Board
Oar share expenses of pension committee
TOTAL MISCELLANEOUS EXPENSES



; MISCELLANEOUS EXPENSES

*

192S
123.31
*
357.12

76.50

0 *0 * 3 2

27.50
175*75
S o fa

225*00
U 9 ^ .3 ^
22s e90

7 , 21^.00
Hoic50
huso

161.00
i w .90
sfc.99
2ss«*oo
3SS.25
20S9S.OO

300o
00
250*00
IS5.00
300.00
15.00
15.00
536*21

192S
♦

3.00
701.71
112.00
191.15
u.oo

88.00
12.00
85.00
6 .U3

19.00

3W .50

36.00
8.00

101.65

Combined

Combined

Helena

Minneapolis

T

1927

,058.83
188.50

833-07
38.50
775.75

178.47
237.00

s
879«3>»

235.33

19.00

1

83.05
1 . 156.70
163.00
SUl.55

23.50
730.05
576.15
312.00
1 *968.1(0
3H8.33
15.00

7,515.50

8,008.50

437.50

Wt.oo
U1.00

% .5 0

161.00
l% .3 5
184.90

3.00
H61,

93.

7

Confei&ed
1226.

50

• >9
■5
30U.33
15.34

839.00
*63.25
312.00

2o337o6U

473.80

13.00
25.00
80»i6lo75

718.00
38.00

&.00

221.60
*.»*0

15.75

IOO.7U

705.10

U3.16

*3 1 .Hi
3»098o00

>.88
2=301.75

3 C1T%.88

15.00

315.00
292.00

315.00
509.60

315.00
124.50

185.00
300.00
15.00
15.00
836 21
100.00

25.00
300.00

250.00
300.00

15.00
810.93
100.00

15.00
100,00

60.00
150.66
1U.572.98
7 , 000.00

6o„oo

>10.00

200.00
te.oo

lOOoOO
GOcOO

150.66

iH 8
572«9«
7,000o00

288.00

1.75

50.00

88.19
3 . 503.66

lo?39o8U

25.00

7*.60

3o*93-57
122.37
675.25
M08O2

*39.832.53

#1.992.35

♦‘
H.824.88

*25,2W».52

$26,
^.Ho

MIWSS

4* liinneapolla $9Q6,2l2o77

W O e474,4$

At Eelem

$94,2C U 69

The combined expenses of Miase&po^is and Helena for
reduction in comparison with 1927 of |480271o69o

323 show a

The net result at

Minneapolis was a reduction of $50c725*28 end at Helena an increase of

$2?453„59 in comparison with the previous year/ Unusual conditions have
affected a number of expense items and an explanation will be offered in
the following paragraphs*
At this time the trend of 1929 expense is not e n t i t y clear bat
we do know that note printing costs will be heavy, quite possibly between

$50©000 and $60*000*

Ambunts reserved for taxes should be materially re­

duced and some further reduction in the expense at closed bank/ will
ly be brought about*

It is quite likely our expenses for 1929 will exceed

the 1928 total by $25,000*
The various expense items are discussed below in the order in
which th»y appear on the proceeding page*

Helena Branch items will be more

fully di*outfte4 la the write-up of Branch operations,

SALARIES

$ 563*653o 0

Officers Salarie^Decrease 192S
$11,857042
Clerical Salaries-Decrease 1928
78397018
Sen-Clerical S&laries~Decrease 1928 13.429„23
$32t683083
Guards and Watchmen*Increase 1928
1«337„60
Set decrease in 1928
$31^846023

$ m.soaae
Through the leaving of Governor Young and Hr* Xbersole during
1927, the yearly basis of payments to Officers i e 1928 was reduced $290800,
f
S r Iberscia was paid to June 200 1927 and Governor Young to October 150
d,
1927,

The savings in this respect for 1928 was $22,191067o

After allowing

for increases granted Officers as of January 1* 1928, the net saving on
Officer^ salaries was $11,857*42.




Clerical Staff Salaries
Staarda aad Watchmen

$350,461,88
29,961e74
65*635.52

to commenting on the reduction in salary payments made Minneapolis
employees during 1928* there are many things to be considered.

The first thing

to mention is the fact that betvsen October 1, 1927 and January 1, 1928* eleven
employee* receiving salaries aggregating $L9,d40» were eliminated*,

As the

January 1 increases to Minneapolis employee* amounted to $20fTOO, it will be
t
•sen that all but $1*460* of this adjustment was provided for without the re­
duction made in personnel during 1928,

The net reduction in employees at

Minneapolis between October I, 1927 and December 31, 1928» was 25 persons,,
During this period 41 persons left our service and over one~half of these em»
ployee* were on a yearly salary basis of $l0500a or greater.

The 16 persons

added have all bsen at a minor wags seals, chisfly messengers*
Payments made to representatives at closed banks» not considered
our regular employees, were reduced $8^770000 in IS2B0

Payment s for extra

help which had been used acre frequently in various functions of the Bank duriqg
1927 were reduced in total $3,578o00 during 1923*
in 1928 by a float force of regular emp^oyeea*

This work was performed

Increases to guards, building

employees and other special employees, not classified as clerical0 amounted to
$l,500o leaving a net reduction in All Other pay-roll of $19»850«00<>
Of the reduction of 25 persons during the past fifteen months, 11
persons have bsen removed from temporary work for the closed bank function*
la explaining the balance of the reduction,, or 14 persons, we have one less
officer, 7 loss on tranalt work and 6 lees on general bank work*

There was a

reduction of 8 parsons classed as regular employees, in the closed bank work,
but as these men had always been Included with the clerical staff, there was
no change in the pay«roll<,

They were simply trsnsferred to other functions*

On December 31 there were 11 pereone on eloeed bank work and three of thaee
peopls wsre on a commission basis.

The total salaries paid yearly to thoee

now on a commission basis had bsen $7,900*

While salarlss and travsling e*»

peness havs bsen reduced through this arrangement, our aisosllaneous costs
at tloted banka have lncreaeed*

As ths deletions were fewer In the clerical

staff and the salary edjuatmente greater, it follows that the paym*mf s U
c




21

the clerica1 ite^* in 19?3 should sH f less of * reduction in comparison with.
1927 than the All Other salary psyaents hers ehowa,
Salary incraaies granted ae of January 1, 1929 to the Staff other
then offieore, were $18,970,00 at mnneapelie and (1,660.00 at Helena.

After

asking the above revisions only* the total yearly pay-roll at Minneapolis will
he $515,630,00 la ooaparleon with $519,910,00 at the beginning of 1938*

At

Helena the pay-roll will he $54,960.00 la coaperlaon with a pay-roll of
$60,200,00 ae of January 1, 1928.

Son* further reductions In the Staff will

he poeelhle during 1929 hot it le alaoet a certainty that the salary payments
of 1929 at Mlnneapolle will exceed such payasnts in 1928.

At Helena the

salary payaente in 1929 should he ahout $1,000 leee than in 1938.

Governor e V Coafgrass*!.
$ 687,30
Federal Heierve A^snte* Conference! 587,23
^teSSlJ&aBSlI
1,149,6?
Sxpenee of each of these Iteae wae heavier than la 1927,

the

Governore* had an additional gathering in 1928 at the tlae of Governor Strong *s
•funeralc
in 1927,

Two aeetinga of the Agente* took place in 1938 with one conference

Stenographic expenee Incurred at Agente* and Governors8 Conferences

held late in 1927 wae paid In 1928.
which belonged la 1927 expeneee.
number each year.

This added $134.10 to our 1928 expenee

Advisory Council aeetings were the eaae la

Aeeeesaeut covering payaente to the Secretary of the Ad­

visory Connell was $300.00 In 1928 and $200.00 In 1927.

pir n i m * .m v u w .

$

6,793,41

One to the feet that Mlnneapolle Directors had oae leee aeetlng la
1928 than la 1937 and that the Helena Direotors set only once during the year,
the expenee of meetings was $653,38 leee than far 1927.

Xxpenee of thie character includes the ordinary traveling expenees
of our Offloers and employees, as well ae the expeneee of rspresentativee at
oloeed banks.

The eliainatlon of aoet of our repreeentativee baa automatically

reduced traveling coats.

The actual decrease in traveling expeneee of re­

presentatives which are claasifled ae recoverable froa the varioua Trusts, haa
been $9,937,90 for thie year In comparieon with euch expense in 1927.

Other

travel expense of our staff shows ea expenditure of $6,433c 9? during the




period January 1 to December 31a 1923„ or $1*549*35 more than one year ago,
Thie increase in 1938 was d&e to approximately $900o acre of bank examination
expense and $530o acre for traveling in connection with the obtaining of
■tatietical information.

Approximately $500, additional was expended in 192?

and in 1928 in connection with closed bank matters^ but this expense is not
recoverable froa the Trusts,,
At Helena the increaee in traveling expenses of $4770 over 1927 was
caused by the officer4e making sevsral extra trips under Head Office approval.
The expensee of two examination* yearly by the Controller are charged against
the Branch and amount to approximately $1^000*

a r a w i ..XKgp j a r a r a s

*

$ ias93o>68

This assessment is based on Federal Reserve Board neede and ie a
non-controllable expense as far as we are concernedthe basis of the assess­
ment being fixed each eix months by that Board,

The rate is the same for all

Federal Bessrve Banks and is determined by the amount of paid-in Capital Stock
and Surplus of each banka
1927o

Oar payment Was $48205o90 less in 1928 than for

On the baeis of the assessment for the first half of 1929„ cur payment

will be $9,787*80 or $10528«S7 more than wae paid in the first six months of
1928.

Total payments to the Board for the year will likely exceed the payments

of last year,

LEGAL m S

$ 27,838,72

Total payaents in 1928 havs been $340° in excess of the payments for
the previous year0

There was no change in the retaining fees paid our Counssl

at Minneapolie and Helena,,

Fees in connection with closed bank matt ere have

been $4e853o 06 less than in 19270

Special payments have been the cause for a

higher total payment during the past year0

Approximately $2„300o more was

paid TJeland and Ueland in connection with the Hugo Bank oase and other special
aattsrs in 1928 than in 19270

Vs also paid $2»750o as a retaining fee and

for other matters in connection with our efforts to bring about a reduction
of our tax payments*




23

ilWBtfffl
$ 30,899014
(Other than on currency
and security shipments)
So change

been sede in tbe various types of insurance carried

during the year although our fire insurance on building was reduced to
$600,000o

The cause of the increase of $1,797.53 over 1927 lies in the fact

that wa placed an excess blanke% bond for $500,000 with the Hartford Accident
o
and Indemnity Company in August 1927 and assumed only five months premium
'ith a full year fa premium being charged in 19280

i the
n

Monthly

chargee for all classss of coverage are $2,265Q at Minneapolis and $3 l0 o at
Helena*

i m m a LsaL s m u g
m ^ m m jL m s is m

$

14,152.51

Costs of shipping money increased at Minneapolis during the past
year and remained about the sane at Helena as in 1927*

The volume of coin

shipped by registered mail insured was greater than in any previous year?
There was a small increase in the amount of insurance absorbed for member
banks through the shipment of securities and coupone0

The increased ef«*

ficiency of operation justified our absorbing this small amount□

We assume

•11 insurance expense on money shipments provided member banks felloe our
instructions in forwarding money to us0

T A X M 01 lAWf P M f t t M
Minneapolis
Helena

$ 84*300*00
2,006,27

During the past year considsrable progress has been made in the
direction of a substantial tax reduction

While we could get no satisfaction

from the Assessor, and the Equalisation Board refused to take any action, the
County Commissioners have agreed to send ue to the State Board with their
approval for a very usiterial reduction,,

This recoanendation should bs favor-*

ably acted upon and we believe, will reeult in our tax payment being reduced
approxiamtely $25,000 yearly,

fe also believe that further reduction may be

obtained at a later date*
The above amount has been reserved at Minneapolis for payment in
1929,

In the event that our tax payment ie reduced, the amount rebated will

be credited in Profit and Lose Account0




Dor monthly chargee against

for taxsa have been $7,000*

We expeet the monthly charge In

1&29 t be
o

$5,000.
At Helena the tax rate fcae bean increased but there hae been no
change in property valuation for a number of year*.

MWTi M P

AF 9cm

$ 17,370.17

The mild weather in the laet quarter of 1928 made possible a
material reduction in heating coets compared to 1927.

In December, 1927 ws

purchased 38,460 gallons of crude oil with 10,024 gallons purchased last
December,,

She heavy carry over from 1927 and the weather enabled ue to savs

$2,483 12 in comparison with the expenee of 19270
Indicate the 1929 trend.

This decrease will not

Our new fuel oil contract put into effect on

October 1, 1928, calls for the payment of $5.94 for each 100 gallons^

The

rate prevailing for the ^rsvlous 12 months was $5.69 per 100 gallons,

Light

and powsr costs have varied but little from 1927 coets.

m B s s u s m

Minneapolis
Helena

$

5,349081
2,306*18

Costs of this character have been relatively low at Minneapolis
in the past year.

Included in Minneapolis expenee is the regular yearly

elevator maintenance contract with the Otie Elevator Company costing $2,166
and $524.30 paid the architect for coamlesions on alteratione msde in 1927.
Otherwise, the only item in exceee of $100, was $780. expended on a hydraulic
lift for garage door*

Coet of repair* and alterations in 1929 plus aain«

tenaoce contract for elevators, is estimated at $5,900,
At Helena the cost of repaire and alteratione wae much higher than
normal.

Steel grillee were placed over all windowe and the interior of the

building wae redecorated.

Repairs and alteratione at the Branch in 1929

should not be in excess of $500,

$ 19,402.4s
Since our occupancy of the new building we have been able to re­
duce each year, the expenditure* for the abdve supplier

Ehe reduction at

Minnsapolif for 1928 in comparison with the expert of 1927, has been $967,97,
last was e.*p«r
In i>i m m month one year ago.




We know that a greater quantity of building

supplies was carried over fro® 1927 than will t # carried into 1929*
o

At

Helena supplies coat $1,3760 43 in 1928 or $469.07 more than in 1927*

The

Branch's location causes higher freight rates on eome supplies and for this
reason purchases are made at times covering acre than one year's needs*
is the reason for the Increase In 1928«

This

In 1929 such costa should be lowered*

* 19, 359.73
At Minneapolis $16,890*14
At Helena
2,479.59
The reduction in printing and stationery coete at Minneapolis
represents a decrease of 27*3 per cent from the similar expense of 1927*

A

great deal of time and effort has been given I© bring about this resulto Costs
have been reduced in a number of functions in the faoe of increased volume of
work requiring additional supplies*

As an example, stationery and printing

required for the check collection function in 1928 coat $1,800« leee than in
1927 and there were 400,000 more items handled in 1928 than during the pre­
vious year*

The savings brought about has affected practically every function

in the bank*

We will not get the full benefit of some changes until 1929*

The Controller has one man devoting the greater part of hia time to lnveetl<»
gating the coate in the various functions and this assistance has enabled
eome departmenta to keep belofr the 1928 budget estimates.

Improved operatlona

have also resulted in a saving in time as well as the eavlng in cost of
forms*

Our efforts are etill being continued*
At Helena the Increase of approxiaately $400, over 1927 coets was

caused by several special purchases in 1928*

During October $464*23 wae

expended for envelopes and no further purchase of this kind will be required
until 1930*

The Branch is given the benefit of quantity ordere by

Minneapolis*

m

m

m

$

5 ,120.03

The small decrease of $184*05 is a reflection of the lessened number
of long distance calls thla year In co^ariaon with 1927,




2K

M SSSm

$17,817.43

Minneapolis $10,950,06
Helen*

6,867,37

•

2a comparison with 1927 telegraph costs show reductions of $1,147053
at Minneapolis and $l0006,70 at Helena0
we can only partly control,,

This is one of the items of expenss

As far as the private wire is concerned, we ssnt

12,131 Isss words during 1928 than in 1927^

The total number of words sent

for the §ystsa regulates the word cost and as all 12 banks sent 1,272*802
aore words in 1928 than in 19270 we got the benefit of the lowered ford cost0
,
Our actual oost per word in 1928 aas 2,17 cents la comparison with 2,41 oents
per word la 1927,
1928,

The reductloa in private wire expense was $1,078,24 la

On messages sent over the Coaoerelal wire we made a saving of $69,19

during the past year,
Selena Branch is entirely dependent on the Coamsrcial wirss, with
coneequent higher rates,

The chief reason for heavy wire expense at the Branch

lies in the fact that settlement wlree must be eent dally to Washington and the
balance eheet wired each day to Minneapolis*,

Other wire operations have been

heavier during 1928 at Helena than in the prevloue yesr, costing approximately
$300, aore in 1928,

However, by an arrangeaent made by your Controller to have

the balance sheet wire eent ae a “day letter", we have been able to reduce
Branch wire costs in this particular over $100o per month with a net saving in
telegraph expenss of $1, 006*70,

m W M

$63,880,41

Minneapolis $56,143., 75
Helena
7,736,66
Postage expense shows an increase over 1927 of $1,009*72 at
Minneapolie and $994,44 at Helena,

The increase at Minneapolis repreeente

a larger transit voluae and also heavier requiremente of postage for currency
and coin shipments.

At Helena there wae tome increaee in traneit voluae and

in ehipments of coin with loss postage required for currency shipments*

The

principal reason for the increase at Helena was the much larger stock of
stamped envelopes on h^nd than usual,

m s m m

$ e, 393*73

This expense item cover* mostly the cost of incoming shipments of
coin and small bills from our member banks, which we absorb*

The cost of

hauling supplies received from outside the City is also Included as veil



as the expense of operating our automobiles.

Schedules of the express

company hare been more closely checked during the past year and approximately
$20,00 per month has been saved as a result*
iM M M lh

expense)

$ 5*989,0?

Gross expense of our cafeteria in 1928 was $l7a722o480

Receipts

from employees amounted to $llp733,41, the difference of $5C9?8„07 being ab­
sorbed by the Bank0

Under Federal Beserve Board ruling we nay absorb one~

third of the cost of food and service, as well as the overhead.
we had absorbed more than the Board author! seda

Previously,

Through some minor changes

in prices we are now able to comply with the Boards request*

For part of

192? 15 per cent of the Welfare Secretary’® salary was charged against
cafeteria supervision but no such charge was made in 1928c

FEDERAL RSSBBYI CBR1XVCT
Original cost and shipping charges

$2O0992,08

The above expense consists of $176750<> for the printing of our notes
during the first four months of 1928 and $3,242*08 paid as shipping charges
on new notes received from Washington during 1928«

In April last we wrote the

Board drawing attention to the fact that we had sufficient notes printed, in
our judgment, to last until the new snaller sized notes were available0
April no not eo have been printed for our account *

Since

Zn comparison with 192? the

coot of notes shows a reduction of $13,125025*
As near as we can estimate, the printing expense of our new notes
with the shipping charges, will be in the neighborhood of $60*000*

m o m

jm m m s a s B L

Cost of Redemtpion Shipping Chargee

$ 10509^83

Of the above amount, all except $150o represents the charges for
forwarding unfit notes to Washington for redemption

The actual redemption

expense at waehlngton was $10017»73 for the fiscal year ending June 30a 1928
and was paid out of a special reserve for that purpose0

The balance remaln=>

lng In the reeerve account after miking the last payment, was |476c5?o

Be­

ginning with October, we have eet aside $50o00 monthly to cover redes&tion
expense for the next flocal year0




MIWFrfltFarns B g M 3 »

$41,834.88

Mlnn«*pfill» $39,838.63
Helena
X,998,36
Host of the miscellaneous items require little or no explanation,,

e'

Bepalrs and maintenance of furniture and equipment cost $l,058o83„
Of this amount the Branch paid $701071 to the Burroughs Adding Machine Co0 for
care of adding machines, the balance representing repairs to special machinery
not handled by our own mechanic; newspapers, books for our library, clipping
service and binding of records cost $1,879034$ copies of bank examination
reports furnished Minneapolis and Helena offices $7,515«,50| donations to the
federal Reserve Club at Minneapolis $2,896,00 and at Helena $200o00$ con­
tribution to the local tax payers association $826*21»
Oaring the closing week of 1928 we shipped $1,225,000 In light weight
gold to the Philadelphia Mint,

An estimated amount placed at $7vp00 was charged

out of expense to cover the abrasion.

While the abrasion hiss not been de­

termined as yet on all the shipment. It Is likely a considerable portion Of the
amount sst aside will be credited to Profit and Loss0
Miscellaneous expenses at Closed banks amounted to $14,572,98 for
.

the year0

Payments made to protect our Interests at closed banks In 1927

were $3,503„66o

During the latter part of 1928 several of our representatives

were placed on a commission basis in lieu of salaries and traveling expenses.
Commissions paid Messrs* Smith, Alger and Becwar up to the close of the year
totaled $9,678o78o

Mr, L« M. Larsen was paid commissions of $821<>43 for

collections aade at fessington Springs, S0 D»

fe also paid $1„115<>90 as our

share of the expense In investigation of Receiver Thompson’s defalcations at
fessington Springs,

The Increased expense at closed banks is partly offset

by reduced salary and traveling expense*




mssssm
There are so aaaay items of procedure that come under the term
nAccounting* that ws will refer to the general accounting of the Bank rather
than the Accounting Function,

As a matter of facta the general books0 member

bank accounts and Federal Reserve Accounts comprise the najor portion of that
Junction under the federal Beserve Board’s manual and this is done solely for
the purpose of making comparisons with the costs in other Federal Be$er?e Bfiake*
e
Xn this connection some further explanation is necessary in commenting on the
distribution of our expenses*
In discussing expenses for the complete year we hare followed the same
arrangement of expense items that prevails through the year in the monthly re­
port e to the Directors,

It will be noted that some of the figures do not agrse

with the amounts shown under the functional distribution of expense.
several reasons for thisD

There are

Under the functional plan of distribution* there is

included that part of the Fiscal Agency expense for which we are reimbursed,,
and protest fees paid to employees in lieu of salaries,

The plan also requires

the charging of stationery and euppliee to the various functions, as withdrawn
from the stock room rather than at the time of purchaee*,
certain items of expense are charged to the unit affectedo

Another reason is that
For instance,, legal

fees In connection with closed banks are charged to the closed bank function
rather than under the legal expense unlt0

In addition* all stenographic costs,

telegraphic costs and telephone tolls are redistributed to the units affected.
The functional expense report shows in detail the coet of operating each
unito

A yearly budget of expense for each unit is mads up at the beginning of

the year.

At the end of each quarter a report ie made up in accordance with

a

the functional distribution shewing the actual expense Incurred in each unit todate,

Theee figures are then compared with the budget and each department is

advised ae to whether the budget eetlmates are being exceeded or note
During 1928 there have been no major changes in accounting procedure
but a number of changee have been nade efcich we feel have Increased efficiency
added to our protection measures as well as reducing expenss«

Some of these

changes are as follows*
the Hegietered Hall and Expret* Unit no* uaea • new plan of triplicate
delivery eheete, with cople* for tha inditing Department and the Receiving De­
partment,

An arrangement vat aleo aade with the Poet Office to supply the Andit

lng Department with the registry number of package* delivered.



30

Za the Currency Department ve have cut down operations by devising
forms to provide permanent records, credits and advices on shipments in one
operation

Further Improvements will be provided in 19290

Through the new method of giving immediate credit for miscellaneous
coupons, we are able to speed up operations and consolidate collection letters,,
Changed method of advising dividend credits in connection with collections made on closed bank transit letters, saving practically 1000 dictated letters
yearlyo
Arranged to pay all "Collect" express charges semi~>weekly by check
thus eliminating many small cash payments and protecting the Bank from possible
dishonesty on the part of express employees or of our own employees,
established a better general ledger control of fiscal Agency securities
held by the delivery teller.

Other changes were delayed on account of the

pressure of work in this department during the latter part of 1928o
Altered the arrangements in connection with wiring Helena Branch balances
at close of business each day9

Some items were also eliminated from the balance

sheet wire with the result that our wire costs at Helena have been materially re~
ducedo

Sons of the accounting methods used on transactions between Helena and

Minneapolis have been changed, resulting in fewer exceptionsa
farther protection measures have been installed in connection with our
Purchasing Department*,

The close cooperation with the Controller is shown in

the comparison of 1928 Printing and Stationery costs with similar costs in 1927,

m

n m

Acc o x m i m m c n m

im - x m

(Minneapolis Only)

Tear
1928
1927

APMIHISTOATIQH.
MffiAL JBOCgS,
No„ of Officers
Nosiber of
A BaolojetSgxpense___ InigZft&f..-.., 0 5
i 90603o30
3„41
$8,804,98
1.33

10,209*22

fXDXRAL HESSEVS
BANK ACCOUNTS
Amber of

T«t

3„94

90400o17

M M B L M g . ACCOUNTS
Number of
..
..
.
4P60 $ 60947o50
5.23

W B BM SSSm

W m m

Number of

Number of

lB8leye«8______ _________ & » ! » — §

8»p«n»«__ M w w

1988

3.80

$ 8,601.96

8.32

$6,958.30

Son*

193?

3.89

8,144.43

8.54

5,894.55

loae




7C579069

Bxpanm
$

81.45
Ion*

Q
S* 1
L
,




REIMBURSABLE EXPENDITURES
ACCOUNT FISCAL AGENCY OPERATIONS
1928

Salaries Officers - - —
Salaries Employees

f 4,300o00

- - - - - - -

—

9,340.50

Printing and Stationery - - - - - - -

2,595,21

Telephone - - - - - -

1,472.80

---- - * —

Telegraph - -------------------

-

400*50

- - - - - - -

1,743,30

Total Expenditures

Postage —

-

$19,862.31*

- - - - —

"This amount includes War Finance Corporation
Reimbursable Expenditures of
$1,669065

FEDERAL RESERVE BANK OF MINNEAPOLIS AND HELENA BRANCH
Amounts charged out of earnings for Furniture and Equipment
(including $40,000.00 for vault in New York Life Building)
since organisation

•

1914-1916
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928

t

5,353.00
44,464.25
59.976.42
23,925.74
100,816.40
53,369*10
24,639a
60
23,328.73
48,937.98
10.347.43
20,869.48
10,783.93
32,026,65
Total

Sales and allowances of old
Furniture and Equipment
Net Cost

$458,838,71

14 687^05
#444 151.66

32

BANK PREMISES REPORT DECEMBER SI, 1928
FEDERAL RESERVE BANK OF MINNEAPOLIS* JCNN-

BUILDING SITE
Original cost of land, including
buildings, if any, ......... . . . .
Incidental expenditures connected
with purchase .....................
T o t a l ..............................
Less prooeeds from sale of salvaged
material . . . .......... .
Cost of building s i t e ...............

$

600,000.00

$

2,468.66
602,4^8.66

|

e00>520Te6‘
t

$

3,000.48

1.946.00

BUILDING
Preliminary expenditures
.
Cost of construction:
Building exclusive of vaults
& fixed maohinery & equipment
Vault construction, including
any additional structure or
foundation made necessary by
vault, and vault equipment . .
Fixed maohinery & equipment $623,965.66*
Less sale and charge-off of
2 mechanical coal stokers
(Original cost $1,966 each)
3,912o00
Miscellaneous building construction ex*
pense incurred by Federal Reserve Bks
Fees & Expenses: Architects . . . . .
Engineers ........
............................
Maintenance .......................
Cost of New Building . .............
~
Cost of building & building site . . .
Charge-offs:
Depreciation allowances. . .
...................
Maintenanoe ......... . .
T o t a l ...................
Book value of property .............

$1,730,065.37

323,750.54

620,053o55

148,027.79
15,846.00
74,350.00
21.705.66
i'2,936,799.39
$3,^37,320.05
1,037,408.68
74,360.00
21.705.66
11,1531464.34*"*"
$2,403,856.71

MEMORANDA
Reserves against depredation:
Building ............. ...........
Fixed machinery and equipnent . . . .
* < * a l ............................

(a)

Floor spaoe:
(a) Occupied by Federal Reserve Bk.
(b) Rented.......................
(o) Unoeoupied...................
(d) Total floor area in building
(A) Net after oharging off $782.40 which was previously
reserved as depreciation on coal stokers.
•Includes $100,000. of architect's fees and expenses.




$ 102,662.52
260,444.93
r"3'63,i67.45

124,739 Sq.
8q.
$ sq.
124,739 Sq.

Ft.
Ft.
Ft.
Ft.

BASK PREMISES REPORT DECEMBER 31, 1928.

Federal Reserve Branch Bank at Helena, Montana.

Original oost of land and building ..................... $ 18,000.00
Coat of rsmodelingt
Building, evolutive of vaults
57,642,93
and fixed aaohinery and equipment.................
Vault construction, including
any additional structure or
foundation made neoessary by v a u l t ......... .
9,266 00
Vault equipment, including doors,
lining, and all interior e q u i p m e n t ......... . . *
66,580,, 63
16,108.99
Fixed aaohinery and equipment.....................
Fees:
Arohiteots .
5,433.57
Contractor's Commission
7,442.12
Total oost . . . ...............
Less prooeeds from sale of salvaged
m a t e r i a l .................
Cost of building and building site

t 177,474.14

Depreciation allowanoes charged offt
Charged to ourrent net earnings

♦

Book value of property

$ 166*108.99

21,290.15

MEMORANDA

Reserves against depreciation:
Building .................
Fixed Machinery and Equipment
Total

. . . . . . . .

175,918c74
11,207.13
$87,125*87

Floor Space:
Occupied by F.R. Bank . . . .
Rented ................... .
Unoccupied .................
Total floor area in building .




4700
0
0
4700

Sq.
Sq»
Sq.
Sq.

Fc
f.
Ft.
ft.
Pt.

84

BANK PREMISES DEPRECIATION
Cnarge^off of land - 1919 - -

-

-

-------- - - -

#100,000*00

Charge-off a of building (Including vault , but excluding
fixed machinery and equipment) to reduce book value to
estimated replacement eostt
Taxes on building during period of construction
------- # 5,200.00
1922
1 ^ 2 3 ................. .....
14,760,00
1924 ........ - ........... 54,390.00
#74,350.00
Cost of maintenance during period of construction
1923 - - ................. - # 2,101.93
1924 - - ............... - 19,603.73
21,705.66
Charge-off of construction costs
1920
---------- - ------ #100,000.00
1921
......... . 3,381.40
1922 - - ------ - - - . ----6,448.87
1923 - - ................... .
20,361.04
1924
219,316.89
1926 ...... ......... .......
30,463.84
1926 - - --------------• - -57,458.64
437,408.68

538,464.34

December 31, 1927 Transferred from surplus
to reduce book value of building- Reserve for depreciation on building
1925 * ......................... ....... .
1926 - ............................. .....
1927
1928
- . ---- ----------- ----- -

500,000.00

38,814.40
32,516.86
5,665.63
25,665.63

Reserve for depreciation on fixed machinery and equipment
.................................... ... 12,814.73
1925 - - - - ....................... ........ 62,396.65
1926
..... ...................... . -(a) 71,222.95
- - - - - ............... - - ....... ... 62,005.35
1928 ---- --- . --- --- --- . . .
62,006.35
Total depreciation on bank premises
Minneapolis
—
—

102,662.52

260,444.955
W 'l W s l i . f S

Helena Branch
Charge-off of building (including vault, but excluding
fixed machinery and equipment) to reduce book value to
estimated replacement cost
1920 —
— - . . . . . . . . . .
Reserve for depreciation on building
1920 * - -------- -------------- ----------- -66,447.49
~ ' ........ ........... ............. .1,893.23
192* .
-..... .......... ............... .1,666.37
1923 - - - - ---- ------ ---------- . . . .
1,571.05
H " .............. - ................ ..... 3,126.80
1926 . . . ------ -------------------- ----3,126.80
1926 - - - - - - - - - -------------- . ---2,700.00
1927
-..... ..................... .
2,700.00
2.700.00
1928 ----------- ---- ------ ------- Reserve for depreciation on fixed machinery and ftotHp f t V
fln
1922
- - - - - - 1,610.90
* ?? * ................... * .................(b)1,641.73
H i t ......................................
1,810.00
H I 5 ...... ................................ .. 1,610.90
,
........................................... .. 1,610.90
J ^ 7 .................................... 1,610.90
1920
---------- ------ --- - ---- -- 1,610.90
Total depreciation on bank promises - Helena
------

21 290.15

*

76,918.74

111207„ 13
TI6"
6,4i6<,0'
f
e

(a) Het after deducting #782.40 on aoeount of sale and
charge-off of two mechanical coal stoker*
(b) Net after deducting #69.17 for replacements.




O fr
o 0

estiaated at $146,445,000

Actual expense of the function was $146, 283,370

Guarding of the building and vault oalntenance expensed ore not included in those
cost® hut are shown order the General Service function*

For 1929 the budget will

call for expenditures of $132*516000 or a reduction of $24»000o Thie lowered es­
timate is due entirely to tax reduction aaft will be referred to

elsewhere

Building changes >Bve besn of a minor nature during the past year, only
3

two ite»e in excess of $100 appearing in Repairs and Alterations Account

Total

cost of repairs and alterations at Minneapolis during 1928 was $5»349081 in coe*>
parisos with $9,309*91 expended in 1927*

Included in expense of repairs and alo

teratione is $2 ,166, the e^scunt of our yearly elevator maintenance contract with
the Otis Uovator Coapany0

With the exception of $780c for a hydraulic lift for

gprage door, and $524o30 paid C*s* Gilbert as caraeiasion on contract for placing
windows at front of building in 192?* all other iteas were smalls
For 1929 the estimate for repairs and alterations is $3,700* and of
this aaount $1«700» is contract price for hydraulic lifta on the front door and
on garage door nuaber 2*

These lifts will provide reliable operation of the

heavy doora under all conditions,
compressor system

XaprOveaents have been aade in the air*

This will continue to be used in operating garage door Vo0 1

and reaaia available for use on any of the doors in an emergency,,

The air systaa

has proved Inadequate for operating acre than one door at a tiae0

We also coa»

template installing an oil heater for hot water at a coat of $576o000
we use coal for the purpose of heating water*
for repaire«

At present

Our own workmen keep down expenss

Safety appl&ancee for cleaning wlndowe have beea devised and aade

by our own eaployeee*
Due to the ailder weather in Boveaber and Deceaber and increased ef~
ficiency, fuel coneuaptlon was leas than in 1927c

Oil used in 1928 wae 120,390

gallons, while 135,000 gallons wae fee aaount eetlaated*

For 1929 the eetlaated

roqulreaent is 130,000 gallons with the aoney value sli^itly above 192do

On

October 1, 1928 we signed a new oil contract calling for a price until October
1§ 1929 of $5094 per 100 gallons*

For the year previous to October lt 1928 we

had yaid $5*69 per 100 gallons*
Deductions froa oil bills on account of temperature at the rate of
1 per cent for each 20° above 60°F also decree ss ~ur costs*,

Although this is

0o S* standard regulation and applies to all oil contracts* without special



36

pro-ieios to that effect, ours is the only brdldJU^ in Sliaaa&polia that takes
advantage of this savings

0& aach finter delivery of i0G000 galIona, o r oaring
ia

runs f e r 300 to 400 galloas ar fra
re.

$12, tc $24e A thertso^ter installed in the

oil receiving pipe checks the teaperature of the oil whan received©
Total salaries paid to building employee® la 1928 were $33,000, a
elight increase over 1927,

With further increases recommended for 19290 our

scale of salaries will be about the average paid ia Minneapolis to employees of
this classe

fe consider our building force above the average ia efficiency*

W B LJ2M M M

(Depreciation)

At the close of 1923 we aide no request for greater depreciation a < >
l=
lowances than normally allowed by the federal Beeerve Board*

Since the completion

of our building, the Board has authorised the eettiag aelde yearly of an amount
equal to 2 per ceat of the replacement value of the building and 10 per sent of
the cost of the fixed Machinery and equipment*

On December 31* 1927 we were per­

mitted to charge Surplus Account $500*000 and reduce Buildlag Account a like
amount becauee of our ineletence that the book value of our building was ssach
higher than market value*

While book value is still «eo hig&, It was deemed best

to aake no requeet for any extraordinary charge-off la 19280 On the baele of the
present book value* ve have added 2 per ceat of $1,283,281© 50 or $25,665© 63 to
the Buildlag Depreciation accouat, making the total at the cloee of the year

$102,662*52©
The fixed machinery aad equipment valuation has been placed at

$620*053,55 and ve have been allowed to set up the maxlmom reserve of 10 per
ceat each year we have occupied the bulldlngo

By the addition of $62,0C5oS5

oa December 31, we now have a total of $260,444«93 eet aelde for the replace**
meat of machiaery and equlpaaat,,

Be replacements have been charged agaiast

this accounto
Bo chaxge has beea smde la the values of Helena property©

The property

accounts and dspreolatioa reserves are carried oa the books at Minneapolis and
included with our own property ia published reports.

Under the method of the

federal Beeerve Board in ol .aiaiag replacement value, the Helena laad is shoma
*

•t $5 000 00rbuilding 1X36,000.00 and flxad machinery and «quii»ent $16,108 99




Depreciation reserve on the building aaonntr

to $75,9 ^ 74 os December SX6 1928

Book vain© it still ranch, greater than the realisable value of the building would
be&

The total held for replacement of fixed machinery and equipment is $11,2Q?«13

or wifchin $4* 901a 86 of the full cost.

One lies for $69017 has been charged against

the reserve account,.




3 8

Expenditures for furniture and equipment in 1928 were greater than
for any other year since 19240

At that time we were preparing to come into our

present quarters and new furniture was required for the executive offices, wel­
fare department and lunch room as well as some replacements in other depsrtmants.
The total expenditure of $32,026,65 includes $2,090*34 for Helena Branch carried
on the hooks at Minneapolis for convenience.,
Classification of purchases made in 1926 and the cost is as follows8
Mssmmut
Dictaphones
$
la710*00
Typewriters
Ia473023
Adding Machines
16,189013
Calculating Machines
971o30
Duplicating Equipment
2,543,08
Building Movable Squipoent
972,75
Cafeteria Equipment
950*25
Lockers for Vault
1,160*00
m i n g Squipoent
1,139,40
Miscellaneous furniture and Squipoent . J L J S L 1 I .

Armoured Body for Truck
four fypewritere
Two Shot Guns
One Bemington fahl Adder
Ml.c.lUu.ou.

?v»le* *

$ 29*936*31

$

1,334,39
352,45
28o00
365<»00
---- _______
3.090.34
$ 38,026,65

014 •***■«*

.iiftw

Vet amount paid out of 1928 earnings

$287777727

In 1927 purchases of furniture and equiposnt amounted to $10a783o93o
Since organisation the coat of furniture and. equiposnt has been as follows!
Amount expended to the close of 1927
Purchased during 1928 ~ Mlnneapolia
Purchased during 1928 - Helena
Leee aoounts received for furniture
sold or traded in
Total expended

$ 386,812,06
29*936*31
2.090.34 $ 418,838,71
.U J t t M

$ 404,151,66

Inventory valuation at Mlnneapolia
Inventory valuation at Helena

$ 124,441,06
12.939.21 $ 137,380.27

fire insurance varried at Minnsapolia
fire insurance carried at Helena

$ 25,000,00
_ 10,000,00 $

35,000,00

It will be noticed that adding machines made up 50 per cent of total
coat of furniture and equlposnto

Hew bookkeeping machines cost approximately

$4,000 and transit machines $7,000*

Other adding machines largely for use in

the Trenelt Department cost $5,000,

Apart from adding machines and typewriters,

the expendituree in 1929 will not be quite eo heavy ae in 1928.

Minneapolis

budget calls for expenditures aggregating $24,585, principally adding machines.




After 1929, replacements should not exceed $15,000 yearly0

Soon ©span*©

will bo entailed in the changing over of onr money counting machines for
the handling of the new sized Mils,
W© have found that while onr mechanic ie able to keep onr adding
machines in good condition for several year* longer than would be the case
with no mechanic, it ie good policy to retire machines after from eight to
ten years ssrvice,

fe employ one very competent mechanic at $2,800 yearly*

A maintenance contract with the dorroughs Adding Msrhlnn Company would cost
us approximately $4,500 and the service would not be satisfactory*
Machinery does not get the same attention at Helena as at
Minneapolis and some replacements will be necessary during 1929c

Practical­

ly all of the Transit equipment at Helena is eight years old0
ill machinery ie carried on our inventory at the trade-in value
when this is obtainable and our furniture such as desks* tables, chairs,
etc*, has been written down amplyQ

Our own men are able to do expert work

in repairing and refinlshing so that no reduction has been made in the
value of our old furniture for several years0

As new articles of furniture

are purchased, our policy is to write down the value to 50^ of the cost
at the end of the first year for inventory purposes.
Tire Insurance to the amount of $25*000 is carried at Minneapolis
on supplies and equipment, with $10*000 carried at Helena for like purpose,,
Water and steam damage to our building and contents at Minneapolis is also
covered by a Lloyd9* policy.




fffigflBgf. « H C « «
Since the first of January 1928, there hss been s reduction of
16 persons on the Minneapolis pay-roll and 4 par eons at Helena*

Pereone em­

ployed on fiscal Agency work at Minneapolis and paid by the Treasury Department
numbered 6 on January 1» 1929* the tame as ons year ago,

Vo change has been

msde in the number of officers although Mr* Cutler reeigned at Helena and was
succeeded by l T Boerr*
lo

Cloeed bank employees listed at 16 parsons on

January %9 1927 hats been reduced to 11 persons and of this number, 3 representa­
tives are on a commission basis and have been removed from the pay-rollo

Other

reductions havs been 6 persons on general bank vork and 4 persons on transit
work*

Two persons were added to the liet of fiscal Agency employees paid by

ths Bshko

i •

*■

••

.

:

Deletions in the Staff eince October 1, 1927e have been more
frequent from employee* paid in excess of $lB500o yearly,,

the decreaee in

cloeed bank work mads poesibls a large portion of the reductions sines October,

i V

1927o

,

•’

i;

Hecessary replacements of employeee in 1928 have been filled almost en­

tirely by employing boye at the minimom sage scale and advancing other em=>
ployees to fill the vacancies0

Several former employees were hired temporarily

during preeeure of fieeal Agency redemptions,,
On January 1, 1929 vs had 200 men and 83 women on Minneapolis
pay-roll compared to 208 men and 88 women one year ago*

On a following sheet

the number of persons employed in esch function at the d o s s of ths year* ie
shown*

The figures giving ths functional distribution will not coincide with

the total employed because a number of pereone are on part tims only,,

i

Substantial salary incrsasss were given the employeee at the
beginning of 1928 and ths adjustments made ae of January 1, 1929 have aleo been
quite liberalo

At the present time our employeee are Just ae wellB if not better

paid than in any other financial inetitutlon in the City„

The contentment that

prevaile among the employees has been refleeted in a greater volume of work
carried but in 1928 with fewe* pereons0
It has been possible for esvsral year* to take care of the
increases by deletions from the Staff, but we doubt If this mey be
accomplished in 1929„




41

CHABPES g

STAFF DPRXJC 1988
Jan* 1, 1929

Jen. 1, 1928

Minneapolis Offloors

12

12

Minneapolis Bank general

164 <1 sx 0 help)

170 (2 ex.help)

Minneapolis Closed Sank Department
(Collectors and Clerks)

11 ♦

X6

Minneapolis Transit Department

78

265

Helena Branch

82

280

35

SI

Fiscal Agency: paid by Bank
Reimbursable:
Officers
Employees

12

10

1
5
IB
------ S E T

1
6

18
SET

30£ of one Transit employee’s time is paid by War Finance Corporation.
* Three collectors in Closed Bank Department who are working on a commission
basis are included in above number*

COST OF FERSOHBEL FUBCTIOH

Administration
T**r 1928
Teur 1927

Humber of
Officers*
Offioers
Salaries
.46
$1,680.02
.8213,266.72

Hiring Employees kHumber p£
Employees9
Employees* Records Employees 8alarlea
Tear 1928
.99 #1,801*98
Year 1927
le03 #1,791*27

Other
Expense
fl.47
-

Total
Expense
<1,861*49
$6,266.72

Other
Expense
#228.59
#239064

Total
Expense
#2,030.37
#2,030*91

Education and
Contribution
Sfrfttefaag------- ia.J.r -.. Club
B»
Tear 1928
# 2,819,00
Tear 1927
# 2,166.76

Contribution
Other
to Am ^Inst oBkgp Expense
# 288.00
#817061
# 277«00
#708o66

Total
Expense_________
#3,624,61
#3,142.41

Welfare and
Humber of
- --- ----- Employees
Tear 1928
lo00
Tear 1927
1.18

Employees’
Other
Salaries______ Expense
#1,684072
#316o61
#1,987.67
#187*51

Total
Expense
#1,901,23
#2,176.18

Cafeteria
- ------ ------Year 1928

Employees*
Cost of
Other
Total
Salaries_______ Food______ Expense
Expense
#5s329o30
#lt>,547024
#1,845.94 #17,722*48
Less Receipts ........... #11.73go41
Het E x p e n s e s ........... # 6,989o
07

Year 1927

Humber of
Employees
6<>71

5075

_

#5,482*69
#U,786o90
#2,0*4*47 #19,314.06
Less Receipts . . . . . . . #12.090.6?
Het Expenses 0 * . . * . . $ 7,223,49

H\mb«r of Employs**’ S*l*ries
Total
£i?»t LPIC9 ________ Employees Hot^Djstrlbuted _ ____________ Expense
_
Year 1928
1*28
#2,969.26
# 2,959*26
Year 1927
Hone
Hone
Rone
Total Personnel
Humber of
Humber of
Emotion______________Offioers_____________ Saplcyees
Year 1928
c
46
8*98
Year 1927
,82
7.94




Expense
#18,366*03
#17,838o71

42

MONTHLY BASIS OF SALARIES PAID BY BASK
— --------by m m m r ------- ~ ~
(Minneapolis 6nly)

Function
General Overhead
#3,697*96
2cl5
Officers
425o07
2o20
Employees
Provision of Space
2,746o94
21o89
Employees
Provision of Personnel
,45
155o01
Officers
9®20
l,018o08
Employees
General Service
o80
267o56
Officers
6p
559o56
58*44
Employees
Insurance
53o34
*10
Officers
Failed Banks
568035
lo!5
Offloers
7o83
l f510o53
i
Employees
Loans, Rediscounts & Acceptances
781o27
*75
Officers
986o22
6o98
Employees
Securities
420089
Officers
1 <,648*01
Employees
9o74
Currency and Coin
185*56
c40
Officers
2*46^22
17o22
Employee
Check Colleotlon
45
167*60
Officers
6*083,37
61c83
Employees
Non-Cash Collection
20
Offloers
70 ©00
lp
788o29
Employees
15o94
Accounting
665c06
086
Officers
2,262*62
16ol0
Employees
Fiscal Agency
358032
o90
Officers
2.740o47
18o97
Employees
Auditing
loOO
583 40
Officers
8o96
1,569=93
Employees
Bank Relations
320087
Officers
211095
Employees
lo05
Federal Reserve Note Issues
120o01
o21
Officers
222-92
Employees
Bank Examinations
094
509020
Officers
4ol5
777084
Employees
Statistical & Analytical
175o02
Officers
5ol5
Employees
i±o06
Total Officers
264.45
35,731o2«
Total Employees
Less Reimbursable
Salaries
cSO •
S 8 o32
£
Officers
778060
Employees
Salaries Paid by Bank
|8,708o78
Offloers
259015




December 31. 1927
Noo '
Amount

December 31* 1928
Hoc
Amount

1®50
2.28

♦2,395c90
420*46

23o00

2,651098

o50
7o60

166*70
746*27

loOO
66o27

533o40
7,403033

•10

S3o34

loOO
15*98

541o70
3,064*18

loOO
6 oil

1,145*90
955«70

•81
llo 95

362 < 4
>0
2,353*12

o30
17*49

137o52
2,456064

o65
S3c84.

216071
6c551e53-

•25
17 c92

83.36
1*991o03

l s00
17o47

791©70
2p
414o02

s89
20o50

333o48
2,747089

loOO
8o70

683o40
1,478*86

o70

297*94
126*71

•

o21

111,26
177 o20

c4 .
9-

470oOO
720036

030
6*56

161
36,947*41

8o55

751,36
#7,833c72
36,196o06

43

ADMIHISTRATION COSTS
(Minneapolis Only}”

The chief item in the General Overhead Function contains the salaries
of the Agent and the Governor. Under the general interpretation of the
Federal Reserve Board5a manual, no part of any other officer»s salary that
* e charged to another expense unit shall be charged in thia unit. It is
b
fairly well understood what other expenses should be placed in this unit and
most of the federal Reserve Banks try to hold down the Overhead totals. This
bank compares favorably with the others in this respect.

GENERAL OVERHEAD CONTROLLABLE

Administration

1928

Average number of officers
Salaries officers
Average number of employ®®*
Salaries employees
Directors* meetings
Traveling expenses
Officers and other dinners
Office supplies & stationery
Telephone and telegraph
Membership dues
Stenographic
All other
Totals

2.15
ZoZZ

i222L

_
^
#44,375o
02

2o
01

#43,700 02

2o26

5,116*36
6,269o36
l,140o58
1,202o
08
580o
56
844o77
750oOO
230o
41
lf477o82
l

5,302o77
6,140.43
1,455.51
282o
99
425o62
506o92
850 oOO
294o39
l0438o64
|81f67l «H
2

All Other
Supplies furnished member banks
publications
Gold abrasion
Grand tot*l General Overhead
Controllable

39o23
593
7O000o00

. .
.

$68*605 »42

$61, *,12.44

GENERAL OVERHEAD H0N~COHTROLLABLE - MXHHSAPOLIc

The following summary of expenses for this function is self-explanatory c
It shows the expenses over whioh the officers of the bank have no direct control,
as they are the result of established policies.
COST OF CURRENCY
1928
Federal Reserve Currency*
Original cost, including shipping oharges
Cost of redemption, inc. shipping oharges
Shipping oharges on ourrenoy to and from
member and nonnnember banks
Shipping charges on coin to and from banks
C o t of
H..4 Offlo. to B« n oh

#20*992.08
l,509o83

2 9,427 ( 2
,6

1927
■
#34,117o3s
1,482.41

8,4V7o65

28*087o70
7,27607o

# 2#424o20

# 1,766*37

ALL OTHER
Governors1, Federal Reserve Agentsand Federal Advisory Conferences
Federal Reserve Board expenses
Shipping oharg.. on ..ouritio.

^

Grand Total General Overhead Hen-Controllable



fSg.gCT
#82,962:92

#96,422048

COMPARATIVE FUNCTIONAL STATEMENT
SHOWING NUMBER OF OFFICERS, NUMBER OF EMPLOYEES AND EXPENSES
1928-1926
(Minneapolis Only)
Number of Officer*
1928
1927
1926
General Overhead - Controllable
Provision of Spaoe
Provision of Personnel
General Service
Insurance
Failed Banks
Loans, Rediscounts & Acceptances
8eourities
Currency and Coin
Check Collections
Non-Cash Collections
Accounting
Fiscal Agenoy
Auditing
Bank Relations
Federal Reserve Agent
Bank Examinations
Statistical and Analytical

2*15
o4S
o60

*10
1*15
.75
oBO
•40
o45
o
20
o85
o90
IcOO
o65
o
21
o94
o50

2 o01
o82
loOO
clO
lo66
•48
*85
•60
o6S
o25
o84
c94
IcOO

068
*25
o89
o60

12 >00

2*16
o.90
loOO

Average Number Employee!
1928
1927
1926

2«24
21.90
8a98
61o05

2*25
23*59
7*94
64.28

2*54
22o65
8o64
64.02

llo59
6C03
10*55
17.87
60o37
16.68
16o89
17o20
9o28
loOO
o77
5*24
5o57
WT6o 99

22.55
5.47
9*12
19.32
66*43
18*99
18*48
16*10
7*95
o60
o75
5o72
5o32
IS M S '

29o06
5*64
4*74
21.68
72*98
19*99
19.84
12.24
9o08
068
077
5o89
4o05
862*17

•10
2o00
o35
•59

068

o65
•25
1*00
lo04
loOO
.76
o25

066

o85
TioSi

Expenses
1928

Expenses
1927

Expenses
1926

General Overhead « Controllable
*
General Overhead - Non-Controllable
Provision of Space
Provision of Personnel
General Service
Postage
Insurance
Failed Banks
Loans, Rediscounts & Acceptances
Securities
Currency and Coin
Cheok Collections
Non-Cash Collections
Accounting
Fiscal Agency
Legal
Auditing
Bank Relations
Federal Reserve Agent
Bank Examinations
Statistical and Analytical
_

I 68,505*42
82,952D92
146,285*57
18,366*05
73,203o89
32,145.58
26,226o
02
79,541.71
24,490«64
28,922*25
39,322c99
95,335.26
27,341*65
46,367*91
47,087076
12,826*21
27,234*47
6,772o90
4,099o77
24, 843c76
16*782*96

$ 61,312.44
96,422*46
152,185.80
17,838*71
79,651o06
33,812*29
24,792 *49
115,591o68
20,557a98
27,248o39
41,394*55
107,741*29
27,9564
48,427o92
43,903*86
7 ,828o91
24,140*25
6,232.12
5,180*44
25,609-62
17,853*11

$ 64,298*61
95,526*65
145,485.99
20,268*00
77,998o70
34,436o86
23,781*57
157,585o24
170677o02
16,253*91
46,535n54
117,616 95
27,570*25
49,655o69
30,941*72
9,545*55
24,603*75
7,242*49
2,841*11
24,014o97
16,685*61

Total Current Expense
Total Reimbursable Expenditures
Protest Fees (Paid to Employees in
Lieu of Salaries)
Stock of Supplies (Net Debit)

$906,212*77
190852o31

♦956,937*30
19,948*97

$966,254*37
17,219*53

4,087o
86
3*300*41

, 4,308 45
2,249*27

5,378*48
1,066*48




tr
un

a a m

.m

m

.s m

The activities of the Federal Beeerve Club bive continued along the m m
lines at those of previous years mad the latereet of the employees hat been nalntainel
with equal, if aot greater snthusiaaa,

The membership at pretent ie 100 per ceat.

The educational features of the paet year included a series of tuppsr
talks oa work la the war lone departments of the bank, and also iacladed the privilege of attending the various courses provided by the Aasrlcan Iastitute of Banking
by their algjbt classes as well as classes at the University of Miaaaota night
school0

Partial refund of the d a e s feee, aot to exceed $5o00, ie mad* to asabere

upon completion of the subject if proper credit le received*

The sum of $300

has bssa sst aside for refunds la X929»
There was established this year for the benefit of club asafeers, a federal
Soserve Club Savings fond, ths object of which ie to foster the idea of thrift among
the asabere and to help thea cultivate this habit0

Che funds are invested la

$overnaent securities to yield as hlgfe a rats of latereet as possible.

At preseat

there are 111 subscribers to the fund who coatrlbute $685*50 each pay day, or a total
of $1,171 aSnthly*

to feeI that this effort is proving truly WorthwhllSo

The athletic actlvltlee of the club have beea broadened eo as to include
aost sports, and the d u b aMbere find no difficulty in taking part in whatever
recreatloa aoet appeals to thtao

Golf especially, hat beea aoet popular and two

tournaments a year have been plsyed, one a handicap match and the other, a feature
of our plcaic, is a blind bogey affair*

Our Distend Ball, Bowling, Tolley Ball

and Basketball teaas art well supported,,
The goodfellowehip of the employees is further displayed by ths spirit
la which the Chrietmas Doll and Toy display it entered into*

This has cone to be

an annual event and each year the Club furniehes the dolls, the girle drest thea
and the aen furnish the toys0

The dolle and toyt are turned over to the family

Welfare Cooaittee for dittrlbutlon to the poor children of the City at Chrittnat*
The tocial gathering! held during the year have all been well attended
and aeeitt in contributing to the following of harmony and goodfellowehip which
prevailt throughout the organisation*
The budget covering Club actlvltlee is practically the same as for last
year and is classified ae follows$




Athletics
Welfare
House Committee
educational Befunde
(Hrls Activities

Cmt.iagMclM
Tc

Leia Dues
proTid*i

525o
1500
1 0700,
300.
400,

$

___lS 5k
| 3,886,
550

4 b

(Minneapolis Only)
Less office service* vere required in 1928 then during the previous
yeer with about the eame number of home calls by the Welfare Secretary in each
year,

The nurse makes a practioe of visiting the homes of all employees absent

over a day or two and in this way the employees and their families are shown
that the Bank is intereeted in their welfare and will help them when neceesaryo
The Welfare Department has its place in promoting a cooperative spirit within
the Staff and assists the Federal Reserve Club in promoting activities* especial^
ly for the women,,
There has not been moch serious illness in the clerical staff during
the past year*
House
S&UA
31

Office service to
Male
female
S S^S X ?JM
jmplogees
752
700

Telephone
122

Expense of conducting Welfare work was less in 1928 than in 1927* There
was more physical examination expense during 1928 on account of the greater number
of boys employed and a portion of the 1927 examination expenee being paid in 19280
Comparison of the expense for 1928 and 1927 is given belows

Salaries
Medical Supplies
Office Supplies
m

0ther

, M 81
$ l,584072
107o16
36o10 .
173q25
$ 1,901,23

A
MSE
$ l,987e67
109„01
64o50
I4o00
$XX7»!l8

Our library has been moved to the third floor in the rooms formerly
occupied by the Agent,

The circulating library inetalled on the third floor in

1925 hae been placed in the charge of the regular librarian.,
Coets of operating our cafeteria have been reduced in 1928,

We were

able to comply with the federal Reserve Board 9 instructions to absorb only ones
third of the cost of food and servlceo

Total expenee other than overhead was

$17,722,48 in 1926 and the amount absorbed was $5,989o07o
total expense of $X903l4o06, the Bank assumed $7#223*49*

In 1927 out of a
The distribution of

the Cafeteria expense for 1928 and 1927 is given below*




‘
Salaries ~ Manager
Salaries - Cooke - Waitresses
Service Supplies
Glass, China, furnishings
Oes fuel
Cost Of food

.
$

im

37o50
5*291*80
l,583o08
90^25
165*99
10e547*24

m i

$

582072
4,899»97
1*765*34
99082
ISO* 32
11*786 90

»l?»783.48
Receipts from employees

15,814,06

$11,733*41

$12*090,57

y m m iv m w a t

IMinneapolis Only)

Certain changes la audit procedure m & & during the latter part
of 192? and other changes put into effect during 1928* have enabled us to
keep a more effective check oa operations and to bring about some savings

la expensec
The revision of our handling methods and controls In connection
with securities held in custody has worked out very satisfactorily*,

A

duplicate record of all securities, held in safekeeping^ Is maintained by
the audit department

All additlone and withdrawals are checked against

the operating department & records dally*
s

Daring the year a complete veri­

fication of all securities held was made with the individual banks and the
•
The method of handling incoming shipments of registered mall
and express was revised early In the year.

All incoming shipments are

described on delivery sheets, separate sheets being used for each different
department*

The delivery sheets are written up in triplicate, one copy is

retained by the department receipting for the package, another copy is
retained by the registered mail teller and a third copy is delivered to the
audit department„

Arrangements have also been made with the Post Office

whereby they advise us daily of the registered packages delivered to otr
messenger*

This system has enabled us to keep a more effective check on

incoming shipments ?f cash and securities,,
A closer control over the ordering of printing and supplies has
been established?

Daring the past year oas man las devoted the greater part

of his time to investigating costs in the various functlone,

Considerable

saving has been sade through the elimination of unnecessary ruling on printed
formSp the eliminatioa of unnecessary two color printing, reducing forme to
stock sites and checking the quality of paper necessaryfor a given form,

fy
i

revising forms and methods of operations, sons saving has been made la time
and labor ae well as la the cost of printing and supplies.
The revised methods of audit procedure has made it necessary to
increase the staff in this department8 resulting in an increase of auditing
expense from $24 140,25 in 1927 to $27,234.,47 in 1928,




48

(Including Helena Branch}
Our discount operations were much heavier during 1928 than in
any prior year since 1924,,

This was true both as to number of pieces dis­

counted for member hanks and the total amount discounted during the year, in
fact volume for 1928 exceeded that of 1926 and 1927 combined.

The Increase

in the amount discounted during 1928 compared to 1927 is a batter measure of
comparison with prior years than the number of iteme,

During the latter part

of July and the first of August* we accepted for rediscount approximately
14,500 notes secured by adjusted service certificates from the Merchants
Rational Bank* St, Paulo

After the labor of examining and recording these

notes had been done, there was practically no further labor necessary as the
notes rsmained intact and were withdrawn in a lump during December,

The

amount of notes secured by adjusted service certificates was $1*950,000*
Of the total of $625,000,000 In rediscounts and collateral loans
from member banks in 1928, Minnesota member banks contributed $610,000,000
indicating that most of our volume was obtained from the discounting of large
collateral loans for the Twin City member banks.

Amounts discounted for North

and South Dakota membere totaled lees than in 1927 with increaees shown for
the Montana, Wisconsin and Michigan members0

The Increased amount in Montana

was also due to collateral loans of the larger banks as the actual number of
pieces handled fell from 1,554 in 1927 to 460 in 1928,

Borrowings were con-

fined to fewer banks during the past year, 224 banks seeking occonoodation
compared to 275 banks ssrved in 1927 and 270 banke in 19260
Throughout the entire year 1928 we received steadier allotments
of bankers bills than in any prior year*

While $69,3090000 wae the amount

alio ted us during the year by the Special Investment Committee, we purchased
from other Federal Reserve Banks a total of $25,309,000, making purchases in
every month of the year with the exception of February0

While the total

dollar value of bankers bills received in 1928 was $3,143,000 lees than the
total received in 1927, the average amount of bills carried for 1928 was
$15*355,000 in contrast with an average of $10,5600000 carried in the previous




year*

The reason for tha lowered average in 1927 ie found in the fact that

a large portion of the allotoente in 1927 consisted of short maturities,,
While a ouch higher percentage of our income than usual has
come froa advances to our member hanks, it seems quits evident that in our
1929 earnings the major sourcs of revenue will continue to be bankers bills*
Some discounting of farm paper has been done during the latter half of 1928
by the federal Intermediate Credit Bank, St* Paul and ve were carrying
$5OO0OOO in rediscounts for this bank on December 310

Paper purchased in the open market
1928
Humber of
Weces
973
January
February
498
March
594
April
570
May
375
June
291
271
July
August
259
Ssptsmber 614
October
£ '6
Yovsaber
716
December. 777
Total 6,804

1927

im m t

8,894,017o84
4,861,427* 95
8,588,324*32
5 0270, 412o 58
4,475,623* 34
2 0552, 708o79
2,787,800o14
2,402,056o85
5,004,051,45
8,940,487*17
6,568,729*66
8^63.457.20
$ 69,309*097*29
$

lumber of
EiSSfi* —
387
478
417
268
400
544
280
265
631
850
974
J L020
6,514

Amount

$ 5,1950447o13
4,952,343*05
4,3110952o75
5,380,418c43
4,825,933c.72
5,118.420*00
2,571,298*94
2,421,136*53
5,705,566c86
11,364,960*47
10,420,454* 86
12*572*649*14
$ 74,840,481*88

Paoer purchased froa other F* Ho Banks
January
64
February
0
251
March
April
178
May
69
June
139
July
225
August
86
September 110
35
October
71
lovember
December
$9
Total 1,297




$

1,400,274*62
0
1,600o000,00
5 , 500*571,69
2,000,059*46
2,300,093,85
3,5000292,46
2,000,050,43
20500,, 261* 71
1,000,202*10
1,506ft 842c 55
2. OQOfl^Oo 00
$ 25,308 648 89

35
53
24
226
12
25
19
0
99
347
232
49
1C121

$

700,000*00
1,100,000*00
600,000*00
5,719,105*61
600,000*00
600,000*00
700,000*00
0
10800,196*40
5,401*285*01
40700,214* 85
1*000,209*91
$ 2209210Olio 78

50

Minneapolie

Moaber of
Xotee fie»
discounted

first Half 1928
Second Saif 1928
total 1928
Monthly.A^eraga

toaber of
Soo of lotea
collateral received a*
notea
collateral to
. dlserartad _£illa payable

2,555
.*9*594
22,089

466
-788
1,225

/
,

Monthly Average

166
347
29,

388

507

763
64.

Offio*re
_8Bl«iM

790

ffnaber of
Jwrtoyeet

Vuaber cf
pieces of
paper
mrche#**
4,002
8,104

3810

655
-we.
1*360

949

lumber
of notes
rebated

1*086
.3^490,
4,876

70.

.

643,

Vwfear of
Offio»r»

442
JBi
841

JS1

102,

First Saif 1927
4,270
Second Saif 1927 _ s a s s
_
total 1927
?,710

lOo of Motes
received aa
collateral to
general line

675«

1,931

2,869
J L 2M .
7,635

4,585

105o

382,

Employee*
Salaries

636,

Other
Xxn*ne«

total

First Saif 1928
,76
Second Half 1928 . n
total 1928

t J L i S L .M

i 9,378.04

fh-.eoll®

$ 1,532.93 $ 11,930.5a
.*£‘1 ®- 1 ! -Z, BfiQa 3.
*
'
..
8 3,206.13 $ 24,490.64

Monthly Average

$

1

8

first Half 1927
Second Saif 1927
total 1927
Monthly Average




,85
.62

$ 4.687.52

So 76
So 30

78125

8 1,387.44

5,15
5.79

( 5,710.08

992,46

♦ 4,962 03

26?, 18 8

2,040.89

8 1,582.69 $

8,932.16

.u ,

$10,374*80

8 3,326.72 8 20,387.98
8

277.14 8

1,694.83

DISCOUNT OPBBIfflOKS
i m m n f O L i s Aim
fflfgra

Month
1928
January
fehrurjry
Karel
April

89
83
97

ft

52
78
SI
97
105

Jane
July
Augas
Septsr sr
Oc+o e j
b»r
Borenfcsr
December
To. different

S
SI

86
112
123
129
130

iS
1*1
122
62

130

100

68

100

JE l

Jar&s

J &

JS.

270

275

Amount Rediscounted
000 Omitted
1928
1927

Tumber of Items
Received

Shanber of Beaks
Served
1987________ 122i

1927

788

3

522
881

5$
9<*
1.152
i.sfio

655

11,620
6.182
*22
718
722

37.681

282
513
0*6

6.655
8,222

7*.070
73.130

A6

10,* 5*
8,n o
f .^ 1
$1*1.051

717

6ft

1-<*T

23.7*2

io,<#»

12 .51*

♦ 625.357

3.398

82.379
78.207
■Sg.^2

l.ai

90s

15.688

16,*06
11,59*
1 0 .9 *
16.777
27.755
27.037
30.359
26.311

19.7*0
1?.358

3
33.965
62.111

1.512
1,060

m2

U .ll
15.283

T38T

*:|

! :S
i,*oi

1 ,11*
1.331

988

12.335
17.722

LD
T

$

221.888

Touna of Mpxscoows
forth

1925
1927

To. Pieces
Rediscounted

1926
195
1926
1925

1922
1921
1920

Minnas ota
19^837

2.950
5,006
<.385
8 .9 a
10, *
20

&§S

36.268

UlnpasoU
Total Amount
Redie counted




1928
1927
1926

l6lO.i75 .325.5 O
12*.*88.558.05
203.958.580.2T

1925
19»

7 3 .9C5 6 7 O.l8
ft.093, 03
222
2320
202.377°«

1923

1922

1921

1920

97.*56,500.97
*7*.338.31
‘0.56
735.151.853»6l

South
Tlieomla

2,008

2.555

I.091
2.657

5 :8
5.50*
5.982

*8.8
5*6
forth Dakota
$*.913 ,
018.90

6.013.983.38
*,913.712.1?
3,*25,W 8.3*
12 , 029. 8* 0.01
19.591.9*1.19
20, 768. 013.06
67.058.283
50.331.395

7!*50
8 .5 K
II.01*
* .3 9 5
12.939

2*2>1.960,576.0^

*.720,293.29
6,*11.060.36

8.323 .& 9 .* *
13 .*50.287.56
l * . 272, 062.70
27.885.39*.*!
91.838.597.01
87.875.6l6.*7

220
1 .5 *
1.569
1.575
*.838

hlflBn
Mlchl
12b

138
85

206
1*0

136

267
601

19.718

13.052

92

210

977
1.750
3.717
2,108

A S

Montana
$2.5*27i59.

1.902.915-72
2.108.39556
1,792.111.93
7>72.950.36
17.997.317.38
28.370,089.12
65.^98.977.15
53.592.37*.96

Wisconsin

$3 , 152,317.38
2,088,*77.69
2.*27.638.68
2.21*.193.91
2,079.395.33
3.580.630.M

. .

10 352 811.38

20,397,189.10
19.516.3*6.19

*78
815
382

TPtfl

23.7*2

,

10 0*0

12.51*
11.&92
27.*13
35.392
iT.933
ie*.23*
73.275

mehlgn
$2,615,000.00
1,817,01*.*2

Total
*fe5.358!397:**

2 . 069. 500.00

221,888,387.06

, .

2.715.S70.*1

1 228 878.58
2 .*07.5 77.*
8,181,33*.*5
11 . 530. 636.70
6,92*.l76.g

1*1,031,222.55

92. *.6G*.21
37
100, *,573.87
35

290,051.926.56
193. 01*.1*3.39
730.662.02* 05

953 .39i.763 .lO

o to m M m

it the close of business December 31c 192?, the unpaid liabilities
,
of 72 closed member banks to us were $952,115019c

During 1928, the number of

member banks closing was 10 and of those 5 did not owe us anything on discounts,,
The remaining 5 banka added $3C6r528,1? la liabilities, mking a total of

Total collections made from all sources during 1928 amounted to
$686,217073 and of this amount $549,322, 84 was applied to reduce the direct
liability of closed banks, leaving a net balance due from these banks of
$709*320*52 at the close of 1928.

Of this latter amount, the remaining

liabilities of 7 banka totaling $95,621.61 were charged against the Special
Bessrve in December 192?, and of this amount $9.802,24 was recovered during
1928*

in December 1928, the remaining liability of one additional bank amount­

ing to $19,078*01 vas charged against the Special Reserve, so that of the
$709,320o52 due from closed bankse $104,897*38 has been charged off*

lames of

the banka from shich recovery nay not be made, and the uncollected liability
Of each* are given In the December report from the Closed Bank Department. On
December 31„ 1928, the number of banks on our closed list having liabilities
to us w&t 57, including the eight banks charged against the Special BeServs0
As security to

the liabilities of the 49 banks on our closed list

not yet paid or charged off amounting to $604,423ol4a we hold $2,759*124.62 of
paper0

Zn addition, we hold $206,266000 of paper classed as worthless whir h

was collateral from those banks whose debts *o us have been charged off
,
Up to the end of 1928s 270 member banks with total liabilities to
us of $14,007,669*54 had closed and of this amount9 we have received full pay­
ment from 156 banks of their original llabllltiea of $90278,4ll»19o

The

liabilities of the remaining banks to us have bean reduced so that only
$709,320 52 remains due as indicated above,.

In addltionc we have obtained

$251«125o98 in interest and $219,157,,51 of our collection expense.
expense accumulated as of December 31, 1928, was $365* 292» 19„

Unpaid

During the

past year $42,042,42 of expense was recovered, the greater part o f which
i
was incurred in prior years.




Interest collsctions made were $43,149,7}

53

froa closed banks and $X#Q?5o9? froa other advances aade to proteat our
In addition to the recoveries mentioned,, we have collected

interests*

during I928e in certain account a, $S7e121076 aore than the original
v iabilities

due us, and now hold $7lc967o40which will eventually apply as

a recovery of interest or collection expense0
A material reduction was aade in the expense of the Closed Bank
Tanctlon during 1928 and a further reduction should take place In 19290
average noaber of employees on this work during 1928 was 11059 and in 1927
22o3$o

An average of X d S officers time was allocated to this function in

1928 as Compared to X. 66 in 1927„
Some of the reductior in closed bank expense was through deletions
A few representatives are now employed in other functions but work for the
closed bank department either part time or part of the yearc

Traveling ex­

penses should continue to decrease but it is difficult to estimate the possible
reduction in legal fees*

A comparison of the 1928 and 1927 expense follows*

HfMHffff

—

i
km

Salaries - Offleers
Salaries - Employees
Traveling expense
Printings stationery and office supplies
Telephone and Telegraph
Legal fees
All other
Total
Average nuaber of officers
Average nuaber of employees




m i

♦

fi.819,,90
27.494,09
U , 773.24
261o94
344,67
12,293.07
..1&.354J30

$ 17,631.28
47,117.77
21,711.14
670: 14
487.16
18,146.13
9,928.06

1

79,341.71

$ 115,591.68

1,15
11.69

1,66
22.35

c tm m i m .c o n m B x m

The total volume of currency receipt* and shipments slightly exceeded
the ▼
plume of 1927,

Total receipt* at Minneapolis and Helena combined were

$202962 5,00 0 or about $4,500,000 greater than in 1927,

w

office

■

' '

Shipment* aade by the

113

duct ion of $2 ?600,000 from the 1927 shipments*

4 ' 000

a

Total number of currency ship­

ment* received at Minneapolis during the past year were 12*211 or 807 more than
received in 1927„

Shipment* made by Minneapolis to member and non»aember bank*

increased from 14,059 in 1927 to 15,110 for 1928*

As there was but small change

in the amount of currency handled, the conclusion is easily reached that the
banks of our District are making and receiving more shipments for a smaller
amount than formerly, with a consequent increase in the shipping charges borne
by this banko
Outgoing shipments of coin greatly exceeded the Incoming shipments
and also were greater in number and amount than one year agoD

Receipts of coin

at Minneapolis and Helena amounted to $3*043,000 during the year and for the
same period $3,8280000 in coin was Shipped to bank* by the two officer
At Minneapolis less bills were received and counted than in 1927,
the increased value of the total shipments being due to a greater amount of
federal Reserve lotes taken from the Agento

Pieces of coin handled were also

less in number but heavier demand for *501 and $1, coins Increased the total
amount shipped over the 1927 total*
The cost of money handling at Minneapolis shews some reduction from
the 1927 expense,,

In the handling of bills the total expense was reduced from

$36,246* 14 in 1927 to $35,133,70 in 19280 Expense of handling coin was
$4,323*37 in 1927 and $46
189*29 in 1928*

Hone of the shipping expense of

currency and coin is charged the Currency function.

The original cost of our

own notes and all shipping charges on currency and coin are allocated to General
Overhead anl appear in the Cost of Currency Unit,
In 1929, especially later in the year, we will have great activity
in the Currency function*

With the retirement of our present notes and the

replacement with small sited bills* there must be a great deal of extra labor
and expense*




COMPARATIVE STATEMENT OF CURE
D COIN FUNCTION
SHOWING imiBER OF PIECES HANDLED, DUMBER OF EMPLOYEES SALARIES
(Minn»apoiie Only)

.. . Counted
..
First Half 1928
Second Half 1926
Total 1928

dumber of
Officers

Amount

Officers

18,839,114
3d,<>38(
,864

#l&4,3ld»000.00

*f,1§9.92

Monthly Average

3,169,666

* 16,193,000oOO

*

165.33

First &tlf 1927
Second Half 1927
Total 1927

18,246,420
20-326,706

* 96,267,960,00

*

826.02

Monthly Average

30
llWfcliWfoff

3,214,344

n ; w o *

# 18,601,616^00

*

137.60

Number ef
Employees

Other
Expense

16,92
16o62

*14,401.96
14.388.99
«8,7§d„98

*2,069,80
74,142 =83

*17,671.72
17,661.98
*36pll3o70

$ 2,399,26

*

346,24

* 2,927,81

*16,461,69
14.422,19

*2,301,80
2.246.64
14,64^,34

*19,678,41
16.667.73
J z t 'i 44.14

$ 2p
672c81

First Half 1928
Second Half 1928
Total 1928

Employ®®#
Salari**

*

* 3,020,81

Monthly Average
First Half 1927
Second Half 1927
Total 1927

19.04
17029

Monthly Average

fetal

378,94

COIN
Number of Coins
Received and
Counted
First Half 1928
Second Half 1928
Total 1928
Monthly Average

6,889,024
3,423,772
4,Jlt,79i
776,066

Number of

*1,640,163000
1,648„435„00
lS,ft4,894„6(5
*

274o
049o83

First Half 1927
6.628.738
Second Half 1927 4.424.738
xercai 1»Z7 10*953,476

*l,628a168,60
1.642.428,00
*3 0165,583*60

Monthly Average

|




912,790

263*798o63

1,16
1,16

Othar

*1,047.80
1,000,00
*i,d4l 60

* 904.66
1,237.13
*2,141,79

*1-962.16
2.237,13
*4,189,29

*

1,10
1.10

Employ®®®

*

*

170,63

178,48

fatal

349.11

*1,092,61 * 883,94
1,049.18
1,,297.74
*2,141,69 f O * l , &

*1,976.46
2.346.92

*

*360.26

178,47

*

181.81

r
expense* as well ai the shipping chargee on currency and coin for 1927 and w

for

sosf or c m p c r . a m m

Original cost of F*K0 Hoten including
20,992a08
1,509,83

1,482,41

29,427,26

Shipping charge a on currency to Member^Banka
6 from Member A Ion* Member Banks 0 , »
Shipping charged on coin to Member Banks
& from Member & Hon-Member Banks * 0 ,
Shipping charge i on currency A coin between
;
Head Office and Branch * < » , , , * ,
>

34,117033

28,0670 70
7,276,78
M _383&.Q7.

$ 60,738.98

$ 71, 327029

(Helena Branch Only)
Shipping chargee on c\arrency to Member Banks
A from Member & Non-Member Banks , 0 „
$ 3(536 95
Shipping charges on coin to Membsr Banks
& from Member & Hon-Member Banks , , 0
___ 1,204,12
Total

o e a o o o o

741«,07

$

10300.41
$

TOCM»_QF CtTR8MGI„SIOTIOTTS_KSCEI?®D FROM AND SBIFFSD
JfiJOTDP® AMD BOI-MSMBBJ BASKS DURIIG - 1928.
(Minneapolis Only)
Received
Shipped
Received Shipped
Total Vo*
From
Shipmenta
From
To
To
H OI MJ M B S K B A K S
MSMB1B BASKS
Received
January
February
March
April
May
June
July
August
September
October
Vovember
December

3*981*64

5,282,05

Total Bo,
Shipments
Sent
m

936
782
86S
852
1,015
1,059
Ip'123
1,229
1,009
I p 128
1,040

795
976
1*194
1,070
1,107
1,384
lt110
1,279
1,633
1,593
1*294
«JLfdlP£

2
7
5
3
10
7
5
9
3
7
8
— •£

6
4
7
11
4
2
2
3
6
7
3
9

938
789
870
855
lo025
1,066
1*128
1,232
1,018
1,135
1,048
.**107

982
I* 201
1,081
1,111
1 386
1,112
1,282
10639
lf600
l
1,297
O-JSI

Totals 12,142

15,046

69

64

12,211

15,110

COZI BSCXITSD F80M AKD S5IFFSD
pcaiYup
aneapolis Helena __ ___Combined
. Mi:
January $ 400,087* f 27,7280 $ 427* 815o
238,669c
32 ,51So
February 206,153*
257,237,
13,852
243,385,
March
190,907*
10*69l,>
180,, 216a
April
180,244,
28,694,
May
151„550*
198,953,
218,1480
June
*9,1«5,
281,612,
42,732*
238* 390,
July
277,208,
242,437,
34,771,
August
250,297,
16,663,
September 233.634,
253,562.
30,831o
222,681
October
339,027,
18,042.
So t ember 220,985.
December, m m ,




^ M I M B I S BAXKS
m s m

Minneapolis
$ 98,950a
129,199.
241,630*
221,180,
270,080,
309,795,
346a080<j
367, 855,
397a15lo
292,618,
226,905>
$ 3 ,lS5a109o
.

Haltaa
9,827.
22,290.
31,760,
37,950,
42,305,
62*715,
67,185*
93,350,
112,190c
950O3O,
53 205,
35.632.

$

$ 563.439,

i

Combined
108,777,
151,489,
273,390,
259,130,
312,385,
372,510,
413,265,
461,205,
509,341,
387^648,
280,110„

COVBISBD

PUBHTS TO

AMD HOH’m3gR B lflE BY MONTHS
A S

RBSSHV1 BASK OF MISKEfPQI.IS
SHIFOTTS

S8C8IPTS
Prom
tlen e Banka.
to r
January
February
March
April

V j
m

$ 17 , 056.301
1U.2U7 .U93
lU,86U,6lU
lU,933.?86
16.939 .% 2

16. 880.165
17.265 .**09

Jane

July

Aagust

17,180,119

16. 005. 0U5
18, 601,U22
October
Hovrmber
16.258.533
1q.02q.21q
December
Total 1928 ♦199.261.798
September

Total
lotbl
Total
TJtal
Tot-1
Total
Total
Tt ’l
o-

1927 $ 19^ . 920.928
1926 186.U85.U81

1925

192H

1923

1922

172.959,062

150. ¥*5,955




TOTAL BSCEIPTS

To

2U6.667
237.470
270, 5U1
2U6,iUg

250,762
236,061

25^.673
319.934

288, 23U
377.786
336.192

* 10,973.500
13.623.150
15.183,521
1H,005,180
lU,282,070
16, 181,015
13.8U3,635
15,192,000
18, 617, 9U
5
20, 111, 3U
0
17.405.343

112.227

23EL
$

X96.362
208,000
X64.200

229,100
28U.900
363. 93
U
U8U.U99
228,9X9
181.6q6
♦ 2.881.67U

3.185.426
3.170.9ft

♦189,256,743
U » . 705 . U8
3

2.799.265

137. 867. 8U
O

X05,XX7,000

6U.332.000

528.000

78.6x6,000

2^9,000

89, 296,000

2,370,230

2 , 172.170
1.383.269

2.155.005
2,W7,000
1,020,000

380,000

$

23t21

♦ 16, 372,369 $ 11 , 196,222
13 ,819,512
12. 629,356
15.295.146
15.331.190
15.135.155
15 . 18O.13U
14,175.294
15.689.492
1U.U90.070
15, 900,816
17.190, 25U
17 , 116,226
16.921.926
16.3U5.215
17,520,082
14.072,735
17.643.325
15.476,900
17.500,053
17.458,265
18 .981.438
l6 .29j .279
16,348,595
18,979,208
16.951.422
20.595.839
17 , 634,262
17.815.582
16.
594,725
i7.2qvq2i
1q.080. 06p
202,634,8
$198, 106,354
lU.ugU.963

147,669
X70.XXU

$18^ 530| 926

171.lUl.273
17X.X66.73U

17,302.968

222,722

73.363^!

57.271
»8.fc5

TOTAL SHIPMSSTS

To

Kffgfter Santa

li 3 .325.OOO

1921 132,789.000

1920

from

132,610
131.000

1U7.591.375

HKLEHA BBAffCE

*198.106.3!
189,656.41
X73.X96.333
X50,694,6X0
X47.723.985
113 . 456.000

133.038.000
64,860,000

232JL
11,769.583
13.393,896
1U.705.328

lU,UUo.2i7

1 3 .189.915

15.359.878
15.U02.890

15 . 78U.125
2i . 5xx,euo
2X ,006,988

X6.XX8.397
,*.7.5
111125

$X92.056,0X2
$192, 056,012

187.073.578
173.313.443
172,550,003

lU0 , , U
620 e 3
107.l 6U.000

90.316.000
78.996.000

m m s&JB aw s#

(Minneapolis Only) .
The safekeeping fiervict extended our member banka h M continued
to expand with the total of securities held by us reaching $138,341,000 on
December 31. 19l8a an increase of $21,179*000 for the year*

Miscellaneous

securities held for the account of member banks increased $6,800,000.
United States securities and miscellaneous securities pledged by member
banks to secure spscial deposits. Increased from $24,458^000 at the close
of 1927 to $27,010,000 on December 31. 1928.

United States securities held

in safekeeping decreased $3,348,000 but United States securities held as
collateral to bills payable amounted to $598,000 on December 31, 1927 and
$16,152,000 on December 31, l928o

Ae collateral loans were but $2,479*000

at the close of 1928. the exceea of United States securities should normally
revert to Safekeeping and show an lncreaee of $10„325,000 for the year
rather than a decrease*
Volume of traiwactlons decreased in comparison vith 1927 vhich
was only natural considering the heavy volume which came to us when the
safekeeping privilege was extended to members in 19270

Member of pieces of

security received by the Custodies Division during the year was 50,474 and
deliveries i»de by this Division numbered 46,7890

Included in the pieces

delivered, were 9,461 piecee turned over for collection, sale or exchange
to other departments of the Bank*

In addition, 150.394 coupons were cut

from the securities held in eafekeeplng and for other purposes.

Under our

present procedure, credit for coupons cut ie given the member banks on date
of maturity of coupons.

Formerly we waited, in the caee of miecellaneous

coupons, until payment had been received t r usa
q

In order that we might give

immediate credit for coupons, we found it necessary to waive the small chargee
for postage and insurance which we had been deducting from the credits.

The

aaount absorbed has been small, has reduced labor and lessened exceptions in
the statements.
Our control of securities is now well establishjd and the verlfi**
cation of holdings with member banks is more easily and quickly accomplished
;,han under former methods.
coMFmwyg
IJS S ^L S B S S S I^

ABMfN ISTRATION

— "iT officers
___

& E mployees

Yet r 1928
Tear 1927




.90
.93

Total

So, of

Total

Ho. of

S^gesst_Jtogloyess___ ^
$5e559<>86
5„997.60

5.56
4w9l

$ llp459.03
11,359.99

Total
—

4©87
4*11

te£32&™.-

$? 1,903.34
1,890,80

,

Grand Tot a

13,922.23
; 7.2 3*3r

5!)

mCSBRn POSITION
With generally higher deposits in 1928 than in 1927, a net increase
of $4*000*000 in circulation, and earning assets averaging $40,952p000 for 1928
in comparison with $35,457,000 in 1927, it follows that, our reserves for the
past year should be somewhat lower than in 19270

There was less fluctuation in

the volume of our earning assets during 1928 and for that reason our reserve
percentages, while generally lower than one year ago, did not have as wide a
spread between the high and low mark as in 1927»

for the twelve months of 1928

the reserve on deposits and circulation combined, ranged from a low of 61„ per
cent to a high of 77a9 per cento
of 58*9 to a high of 80»

In 1927 the similar percentages ran from a low.

During the last quarter of 1927 when we asked for

additional allotments of acceptances to build up our earnings, our reserves fell
to the lowest point of the year*

On the last day of December 1927, the reserve

percentage was 65o5 in comparison with a reserve of 71„8 per cent at the close
of l928o
During the month of December when our discounted paper fell ap­
prox inately $10,400,000, our reserves Increased $10,200»000o

With most of

our invested funds confined to United States securities, acceptances and
collateral loans to our large member banks, any expansion or contraction of
our earning assets is immediately reflected in our gold fundo

On December

31, 1928 we held rediscounts of $1*513,000 and collateral loans of $2,4?8,000o
Paper pledged with the Agent to eecure note issues decreased from $34,458,000
on November 30 to $26o008,000 on December 31„

To replace this reduction in

collateral, we transferred $3,000,000 to the Agent's (told fund making his
balance $31,000,000 at the close of 1928 or a net reduction of $2*000,000
during the year0
for the first 10 months of 1928 member bank balances have exceeded
the balances in the corresponding months of 1927a

The Increase has ranged

from $1,300,000 to $4 6Cf ,000, In November and December the balances have been
no higher in 1928 than in 1927 with the total $55*092,000 on December 31, 1928
and $55,064,000 on December 31, 1927»

Average daily of member banks balances

in 1928 was $53,247,000 or an increase of $2,600,000 over the daily average
of 19270

The high mark for the year of Minneapolis deposits was $52,849o000

on November 9 with a low total of $42,064,000 on August 7, 1928*




ggsjRva.pQSifigL
(Minneapolis and Helena)
Deposits at the Branch have been higher than ever before,,
record total of $9,023,000 was heldo

On December 4 the

the lowest mark reached during the year

by the Branch deposits was $5,756p000 on June 20*

Combined deposits of

Minneapolis art Helena were highest during the year on November 9 with
$60,105,000 and the lowest on August 7 with $48» 493*0000

daily

Minneapolis and Ifelepa^Comblngd.
m *

January
February
March
April
May
June
July
August
September
October
Vovsmber
December

$

$ 50,377,000o
49,114,000.
508l39D000o
48,824c000«
47,645,000o
48*377,000,
49,019,000,
48^229^000
50*870,000=
530850,000,
56f1980000
f
55»06^s000'

Jsooary
February
March
April
Msy
June
July
August
September
October
Vovsaber
December

53,224,000,
52,998,000*
53,863,000c
63f443,000o
51,619,000.
52,936,000.
51,958,000.
50,678e000c
52,955,000.
55a133,000
5$,070,000u
55.092*000*

Daily Average Member Bank Balance^Minneapolis and Helena
n
n
«
a
f
t
a
«
H
*
i
»
H
«
«
«
s
<
i
R
U N
«
H
f
t
i
i
i
t
«
n
»
«
■
»
«
«
f
t
N R
•
«
«
•
«
R
ft
ft
R
ft
ft
•
H
H
N
f
t
R
«
R
n
f
t

$53,247,000*
50,650,000,
50o67OPOOOu
53(,076a000,
49,6006OOOo
47,813,000*
44,451,000„
4l,5353000,

1928
1927
1926
1925
1924
1923
1922
1921

umtmat S A W r n m w balamct fi«cfPAfi0i8

gIGH
LQW
Minneapolis Only Nov 9» 1928 $52,848,817096 Minneapolis Only,Augo 7,28 $42e064s355o70
Helena Only, Dec, 14, 1928
9,022,6080 89 Helens Only, June 20,1928
6t786p98* 20
Combined, Iov0 9, 1928
60,105,103,98 Combined, August 7, 1928
48»493»619042
Combined, Iov„ IS, 1927
Combined, Jan* 12, 1926

$61,758,?45o 24
56,686,133o58

$42,606,590o 29
45,505,455,89

Combined, Msy 31, 1927
Combined, June 3, 1926

ooiffmtm oT M m m ^m vxm nm *ucxs

aragMfajgrtyft, Q Q mite**
Q ..
Michigan
Minnesota
Montana
lOo Dakota
So, Dakota
Visoo&sin
totals

192$
$ 3,128 M
34,679
7,496
4,235
4 6092
_&i$2
|56,067 M

HHPMgQLH-.l92,g
total Penaltiss for 1928 $5,783*0$
Vumber of Bsnks Penslised
141
Maximum Penalty fiats




m i

2, 859 M
34,337
7,063
4,292
3,917
-jtlaz
$64,724 M

m m
$1 . , 9 8 0 . 05 -

*

im

I 2,816 M
31,660
6,307
4,173
3,535
$50,757 I

1928
7 b763o 14
178

$ 13.404 *
182
si*

STATEMENT OF INVESTMENTS HELD DECEMBER.51, 1928
Maturity
Date
First Liberty Loan
Bonds
First Liberty Lean 4 # Bonds
Fourth Liberty Lean 4 ^ Bonds
Treasury Notes Series-A
Treasury Notes Serles-B
Vo So Treasury Bonds
Uo So Treasury Bonds
Uo So Cowers ion Bonds
Uo So Conversion Bonds
Uo So Pansna Bonds
Uo S . Panama Bonds

Amount
(Par Value)

Interest
Rate

1952-1947
1952-1947

i

1950-1952
1950-1982
1944-1964
1940=1943
1946
1947
1961
1956-1958

400 o
786,400.
8,441,2600
5,068,760o
7,100o
166,900c
9,460o
S0200o
111,600.
600o
260o

Participation in Federal Reserve System
Speolal investment aooount t
-

tiy c o
ry

Total T o So Securities
T

505220600o

t' R W o T O V
T

Federal Intermediate Credit Beak Debentures
Federal Intermediate Credit Bank, StD Paulp Mfam<

2-16-20
m

6000000.
lp
076,000a

GOLD HOLDINGS OF THE BANK AND FEDERAL
RESERVE AGENT AT CLOSE OF BUSINESS DECEMBER
X

1927
Gold
Gold
Gold
Gold

Coin
Certificates
Settlement Fund
Redemption Fund

$ 5,811,6 OO0 OO
lc
930,600o00
29„64«,059*76
2,541D
769o47

I 5,616,676o00
lc656r600o00
l«p850061Sc00
1,422,991oOO

H -Id

by Agon*

Total Geld Held bjr B a n k ---- -

1928
Geld
Gold
Gold
Gold

Coiat
Certificates
with Fo Ro Board
Redemption Fund

# 50
466fOOOoOO
10,712 P000oOO
51,000Q000o
00
2 0765 :i^nOO

Total Gold with F* R« Agent Combined Gold Holdings




1927

0 ~

$ 5,466pOOO
10 d712 r000o00
SSpOOOoOOOoOO
_ g cE81-.665 00

#47,920,620o00

#49^728 ,666c00

#86,860,519 o25

$75,034c259*00

TRANSFER AND CODING W I T S
(Minneapolis Only)
The total number of transfers made during 1928 lnorea*ed in number
«th^ amount as compared to 1927 o In 1928 thor# woro 690820 tranefer* totaling
#20772P126,000 and In 1927 there woro 63,880 transfers totaling #2,690,440D000.
Transfers made for the % Redanption Fund of national Banks during 1928
were 160347 totaling *12*421p
000 and during 1927 were 15,086 totaling
$9p6S*0
OOOo

Wire and mail transfer* other than the 6$ Redaction Fund of

Hatlenal Banks during 1928 were 440
475 transactions totaling $20789,704,0000
as compared to 40D295 transfers totaling #2P5$00804P
000 in iS27o
Tnw«wHfi|p wire transfers during 1926 were the largest la number and
amount in the history of the banko

Outgoing wire transfers were larger In

amount than in previous years and exceeded 1» number only hy the reoord year
1924 when 11 o945 outgoing wire transfers were handled.

A comparison of the

wire transfer* handled from 1925 thru 1928 follows i
Tear

1928
1927
1926
1926
1924
1925

Outgoing Wire Transfer*
~ \ n £ i&M ..
llc
908
110116
10 ol74
100817
llo94«
100062

#705,041^000
#70p849*000
6090896o000
096oO95oOOO
700o67«o000
646ol3S0
000

Incoming Wire Transfers
fiarr
f&fe
A&^untt
18,921
100*24
IMS®
14P926
14oS81
14 06<J7

|1D645#
0180000
l0
438o676,000
1 0381P174,000
lo376.894D
000
lp2440056*000
Io079o886o000

The average number of clerks in the Transfer Obit during 1928 wa*
2 027 and in 1927 was 2 O90*

The total expense of the Transfer Unit was #**470*42

in 1928 and $?pl99<>88 in 1927, all of t i reduotieca being attributed to the
fe
lessened payments made employees ©
Messages coded and decoded during the year, other than transfers0
numbered 20,527 and for 1927 were 170896o

The average number of employees

in the Coding Unit during 1928 was loti and during 1927 was lo56o

The total

expense of the coding unit in 1928 was #2,058o29 and in 1927 was #1,825<*86©
Messages for our Helena Branch are forwarded over the oenmieroial wires
a* we do not have a private wire to the Branch 0 Telegrams from other Federal
Reserve Eanks for the Branch are forwarded to us and relayed to Helena except
ia the case of San Francisco and its Branches, whioh messages are relayed to
Helena by the Spokane Branch of the Federal Reserve Bank of San Franci*o*o
The expense of messages relayed to Helena is materially reduced thru coding
in this office©




COMPARATIVE STATEMENT SHOWING NUMBER AND AMOUNT OP TRANSFERS MADE,
NUMBER OF BIPLOTEES, SALARIES AND OTHER EXPENSES
(Minneapolis Only}
1928-1927
Number of transfers
made other then for
6% Redemption Fund
of National Beaks.

HrSTBatf Ittft
Seoond Half 1928
Total 1928
Monthly Average
First Half 1927
Second Half 1927
Total 1927
Monthly Average

Firs^ Half 1928
Second Half 1928
Total 1928

(Wire and Mail)
—
m
v ''2
23*663
'w m

Number of transfer*
for 5% Redemption fund
of National Bankso
Amount
f i ; T O . w 0w 6 o S r
1^480.627.000.00
769*704,000oOO

i W

3,706

229,975,333,35

1,279

1,036,050.00

19,243
£1,052
46,296

*1,161,561,000oOO
1.419.443.000.00
H7S55'864!6W0
66

6,566
6,519
liso&6

*4,841,160,00
4.794.780,00
I C « w £ f „66
S6‘

3,168

Number of
fctployees
5.0S
1,90

$

215,067,000 o00

1,090

*

802,994,16

Employees
Salaries

Other
Expense

H T Sst) o6f

*1,583617

l„293o83

1.962.75
“0 4 b : s ?

Total
iso
|3o 213 o84
3«256068
"MWo4i

243o71

296 o49

659 20

*10734,92

*1,621,70
1.877o28

*3,366,62
3.643 24
TT^ W J B

’Y j i h m

Monthly Average
First Half 1927
Second Half 1927
Total 1927

Amount

*6,636,666.06
5,789.800.00

7o702
7.646

2o82
3ol5

ln968096

w

Monthly Average

# 308,41

*

M

m

291.59

*

599.99

CODUB? m m
Number of
Employees
Plr«t Half 1928
Second Half 1928
Total 1928

2,18

Employees
Salaries
TToTTeS
lr262nOZ
$2,629*94

Monthly Average
First Half 1927
Second Half 1927
Total 1927
Monthly Average




Other
Expense
T

6,18
$ h o f

169ol4
lo64
lol5

koii

Total
ense
Rxpe

TTW

ln268o20

r m lo ^

o72

169o86

$1,069069
751o84
$10821.43

$

4o43
None
* 4,43

$1,074,,02
♦ 751,84
)l#825o86

$

*

I

151078

,37

152old

TSLSQEAPB VOTLf
(Minneapolis Only)

During 1928 16,994 meesagea were ssnt over onr leased wiro and 27,208
messages re ceived, a total of 44,202 aessagea a« compared to 42,528 n tH^ e s in

1927.

luaber of telegram* sent in 1928 dooraaaad 62 wlraa and xunribar racalTad

1,739 aeeaagea.

increased

fha nuaber of words sent orer tha laaaad wiro i» 1928 waa 412,986 and
for 1927 waa 428,228, a daoraaaa of 18,242 words*
Sotal coat of tha Telegraph unit for 1928 waa £4,113*27 and far 1927

$15,051s
89» Average maker of operators employed in this unit daring 1928 was
lo74 and for 1927 1.59 employees 0 Coat of coamercial aessagea for 1928 waa
$4,789*03 and in 1927 $4,678024, tha increase being moetly due to tha inoreaaed
use of tha transfer

unit facilities.

Laaaad wire rental for 1928 waa $6,561.53 •

and in 1927 waa $7,639.870
Laaaad wire rental ia based upon the ouaber of words sent by each Federal
Beserve Bank with the exception of certain asasagss forwarded by the Federal Be*
serve Bank of Hew York for the benefit of the recelying Federal Beserve Basks,
fhe Treasury Department pays tha Federal Beserre Board for its use of the leased
wire facilities and the Federal Beserve Board messages ars paid by the Federal Be~
serve Banks in their leased wirs assessment,

Aa the number of vorda aent by the

Federal Beserve Systea increased 1,272,802 in 1928 over 1927 we received the bene*
fit of the reduced cost per word,.
OFMUTTOsrs oy I&ASgp WIB1
is & r m s ,
t & bqbam s sm e
1928
1927
1926
_
MSISi_____________ _ ___________

January
February
March
April
May
June
July
August
Septsabsr
October
Yoveaber
Deceaber

1,291
1,182
1,458
1 246
1,442
1,456
1,402
1,464
1,463
1,616
1,445

1,362
1,177
1,559
1,256
1,405
1,452
1,328
1,372
1,516
1,539
1,552

16*994

17,056

JL M S i




1,410
1,183
1,474
1 0295
1,301
1,486
1,322
1,439
1,533
1,574
1,509
1.852
17,078

1928

2,166
2,032
2,323
2,128
2,265
2,334
2,247
2,264
2,223
2,658
2,238
JL33&
27,208

s M cm m .
1927
1926

1,926
1,719
2,423
1,970
2,107
2,189
2,034
2,a4
2,188
2,316
2,189
-2*134
25,469

1,697
1,582
1,992
1,849
10
758
1,881
1,834
1,814
1,880
1,968
1,924
22,205

65

The volume of non-cash collections handled during 1928 p other
than Government Coupons, increased in number and amount as compared to
1927o During 1928 this function handled 276D314 items totaling
#121,S66r886o66 and in 1927 246,511 items totaling #112p994,935o48o
City oollections handled in 1928 were 164P711 totaling
f€6:053,613o880 an increase in number and amount as compared to 1927
)
with 125c303 items totaling #57p5830988 66 o
Country collections nandled during 1928 decreased in number
and amount over the 1927 period, the figures being 60D178 items total*
ing #27p909 £,460,46 for 1928 and 79p500 items totaling $38*OOlp
O2Oo60
for 1927o
Security collections, other than Government Coupons, increased
in 1928 in nuiriber and amount in comparison with the year 1927o In 1928
this function handled 510
425 items totaling #28,402,821c21 and in 1927
40,708 collections totaling $200
409p924o36o A large part of the increase
is attributable to the collection of coupons from safekeeping securities
and the collection of due and called bondso
Collections sent direct by member banks to other Federal Reserve
Banks during 1928 for their account with us were 10768 totaling #15,808,180016o
The average cost of handling non-cash collections^ other than
Government Coupons, during 1928 was 9 02 oents and in 1927 was 10 29 oents0
GOVERNMENT COUPON UNIT
{Minneapolis Only) ’
This unit collects Government Coupons, Federal Land Bank coupons
and Federal Land Bank Bondu.
We handled 742,164 items totaling #90630D716o98 during 1928
as compared to 9230OOO items totaling #9 0335dOOOo in 1927o
Although the cost of operating this unit decreased from $2,694 28
for 1927 to #2,266o98 for 19280 the decreased volume resulted in an increase
in the per item cost for 1928 to 30o84 cents per hundred as oompared to
29ol8 oents for 1927




66

m s m s g je s m m *

COHPlHATXYl STATSMES? SHOflKS V0MB2R 07 M0& -CASH COLLBCTIOIS
. SM^LOTSSS,
Q
Minneapolis Only

First Half 1928
Second Half 1928
TOTAX

$420,00

14.57

.25
35

20,459

$10,775o 99 $lf,960a20
j , m w
f30a444.80 f3»790,77
1,703.73

Total
StponGfc

$13,1560 19
_ik2i£ja
$25,075.57

83„33

2,089.83

$ 3,573,95 $1,878.84
. i f i A l I J.068.8S
$20,339.86 |3,924,69

17.4?
l’-01

315.90

l a , 962.79
13.311.5 3
$257264 35

$ 1,694,97 $

$500.00
,500.00
$1*000*00
$

Other
Expense

Staployess
Salaries

70o00

103,800
141.711
245,511

Monthly Average

16„06

|840o00

23*174

First Half 1927
Second Half 1927
TOTAL

lOo of
Saoployees

J3SL S &

,20
>20

126,920
152,167
278.087

Monthly Average

Officers
Salaries

Ho* of
Offi­
cer*

Total Boo
Collections
HandJod

$ 2,105,36

327.06

CQUPABISQg Of MDMMS OT ITEMS B M M i m M B GflLLOTtM
1928 - 1927
(Minneapolis Only)
■filtt M l f < ? U 0 1 M ____ Sga&HJklliW&ifiBS----- Secwlty Collection*

Jano
Feho
Mer,
April
May
Juns
<foly
Aogust
Septa
Octo
Mov,
DeCo
Total

1928_
11*073
11.100
12,653
lie 164
12,461
11.710
10,686
13.170
17,011
22,719
16v711

-1927
11,812
7,907 8,492
4,466
4.347
6.767
■5,611
8.923
17.565
20,957
16.273
eI ?
JJA

164.711

125,303

1926
5.159
4*897
5,239
4,892
5,147
4,996
4,450
4,380
4,740
5S530
5.337

60,178

1927 ..... _
.... _
9.254
7,907
6,415
5*954
5,683
6,066
5,764
5,780
5,829
8,131
6,353
, - *374
6

Tot a: Collections

1927
3,468
2.418
2,626
3,405
2*910
3,903
4,022
2,956
2,798
3,531
3,991

1928
20a743
19,471
21,560
20,315
21,917
21 a404
19*852
31,564
25,198
32,932
26,503
_ 24.855
_

1927
24p534
18,232
17,533
13*825
12,940
160736
15,38*:
17,659
26 192
32,619
26*617
237

51*425

79,500

1928
4.511
3,474
3,668
4.259
4,309
4.698
4,716
4 b014
3,447
4,683
4,455

40,708

276,314

245,511

COMFiBAITO s n f B E B T SHOfllS BOMBER 0 1 QOVBBBMBBT COOMBS
■B4roi^^«ae^ e r _ s » M t g s , _sauiu*s asd othbb p p m s i s

„
First Half 1928
Seoond Half 1928
TOTAL
Monthly Average
First Half 1927
Second Self 1927
TOTAL
Monthly Average




Humber of
Coupons
Bandied___

348.412
_T 393,742 _
.
742*154

Humber
of
Xanlorees
lo25
1,49

loployees
Salaries
$

459o532
923,109

76,926

Total
Xxpense

$ 1,910 c 8
.4

$ 181.20
-128-30
$ 356,50

$ 1,043.30
,1.223.68
$ 2,266.98

159.20

29,71

188.92

$ 1,148,49
$ 2.298.13

$ 158.31
-m M
$ 396.15

I 1,306.70
-1.387.68
$ 3.694.28

$

$

$

61,846
lo66
lo93

862ol0

Other
XxoenM

.i d i h s * .

191.51

33,01

224.62

pmcK c g a s s g .rractioH
(Minneapolis Only)

Thar© was an increase of 400,783 items handled thru thie func­
tion during 1928 at compared to 1927, in 1928 we handled 22,917,18$ checks
totaling $3,690,001,333o89 and in 1927 21,910,423 items totaling
#3,367p71$ ,996 010 o A marked decrease in the number of itsms handled
each year was indicated in the annual reports of 1920 azxl 1927 in com­
parison with prior years.

During 1926 28,661,024 items were handled,

a slight increase over 1924 but considerably less than the high year
total 1925 with 27,4fe2c379 checks handled«
A comparison of the number and amount of items handled during
the years 1926 thru 1928 is listed below*
Tear

Humber of Items
Amount
£z 17,186
#5,6900
S0T;OT3o89
1927
21,918,425
5,387,7130996„10
1928
23,108,204
3,487,797,707oil
1926 24,607p606
3,813,276,2410
01
19%$

Items handled on Helena, Montana, and on other Federal Reserve
Bank districts decreased during 1928 as compared to 1927, all other
classes of items reflected increases © A comparison of the nuniber of
items handled by the various divisions for 1928 thru 1928 is given belowt
Items Handled On
Twin City Banks (Clearings)
Member & Hon-Xes&er Banks
(This District)
Other To R, Districts
Direct to Mesfeer Banks
Other FcRo Districts
Helena, Montana
Treasurer of Uhited States
Totals

1928

1927

1926

4,200,477

3,862,476

3,780,889

10,372,446
920,603

10,178,997
1,118,880

17,279,728
1,224,399

49,006
10,234
764n464

37,168
11,924
718 989

44,130
11,928
787a130

22,317,188

21,918,423

23,108,204

*

A table of the dally nuafcer of items handled per person since
1921 In this function, indicating the constant increase in efficiency
and voiums of work handled per employee, followst
Year
1#48"
1927
1928
1926
1924
1923
1922
1921




Aver aje number of ltsms p*r p*;aon daily
Ofi4~'
~
' ”
~
1,064
993
968
868
738
674
539

A B o o
~ M

Employees
"

87
98
109
X2S
■»
:

68

CHECK COLLECTION FUNCTION
(Minneapolis only) Continued
The constant reduction in the number of oash letters sent during the last
few years reflects the bank consolidations 0 closings* and removals froa our list
of banks upon whom we will handle items for collection.

The number of oash letters

received and sent as well as the number of banks reported olosed and reopened #
and
the number of banks removed and added to our list during the years 1925 through
1928 are giren in the table quoted belewt
Tear
_____

Letters
Received
(DAILY)
1,604
1,527
1*454
1,588

1928
1927
1926
1925

Letters
Sent
(DAILY)

Banks
Reported
Closed

Banks
Reported
He opened

1,496
1,588
1,800
2,069

102

12

' 126
116
140

43
51
25

Banks
Removed
from list
91
57
81
209

Banks
Added to
List

8
24
26
50

The average number of items returned daily by us during 1920 was 1,139 and
during 1927 was 1PS08.

These numbers include items which are returned because the

drawee banks are not on our list, and other items which are returned without pre>
sentation0
A comparison of the per item oosts of the various olasses of items for
1928 and 1927, together with the average oosts for the system as rsfleoted in the
reports for the first half of each year, is given below?
Class of items

Ttodt

Fo Ro MplSo

P. R.'feds*

Clearings
Government Warrants
Country Cheoks
Return Items

100
100
100
per

1906 i
37 «0 /
32 0 #
7
l c66

18o2 j
40 ol /
39 < 4 /
,
l o50

checks
warrants
cheeks
item

P. R.System Fo R. System
5$of

39 < 3 fC
,
41*2 /
lo70

37 of /
41 08 /
42 02 /
lo80

It is interesting to note that the average Federal Reserve System oosts for
the first half of 1928 indicate a reduction in oost per item for all olasses of items
ae compared to the first half year of 1927.

The oosts for all olasses of items at

the Minneapolis Offloe for 1928 are lower than the average Federal Reserve System
oosts as refleeted in the latest available figures the first half year of 19280
The 1928 daily average number of items handled per person in the -various
units of the oheak collection function as compared to the average for the System
for the first half year of 1928 follows*
Class of Items
Clearings
Government Cheoks
Country Cheoks
Return Items




Fo R# Bank, MplSo
2P
479
1,452
1,338
359

F« Ro System
1,485
1,20$
1,022
30*

COMPABAtrVE STATEMENT SHOWING VOLUME OF WORK!
NUMBER OF BIPLOYKES AND OTHER EXPENSES
CHECK COLLECTION DEPARTMENT
(Minneapolis Only)

First Half 1928
Seoond Half 1928
Total 1928
Monthly Average
First Half 1927
Seoond Half 1927
Total 1927

No. of
return item
oheoks handled
168,000
184,000
SHfbob

63,760

1,446,000

28 ,600

1,810,000
1,976.000
I, tag,566

363.000
366.000
’ 3 ,00c
T

8.488.000
8.868.000
IV,346,000

194,000
201.000
396,000

316,417

69,833

1,446,600

32 ,917

Number of
Officers
.46

Monthly Average
First Half 1927
Seoond Half 1927
Total 1927

i w .t m

No. of Country
oheoks received
8.398.000
8.964.000
TftWlftO

343,916

Monthly Average

First Half 1928
Seoond Half 1928
Total 1928

Noo of
Government
oheoks paid
383.000
382.000

NOo of City
checks handled
1.956.000
2.172.000
4,Uf,obo

Officers’
Salaries’
| 946.00
946.00
(I.890 00
(

.66
.66

Monthly Average

6 1 .U

69ol6

167.60

Employees'
Other
Salaries
Expense
"1S8,041.78 ilO,296,26
86,686.06
9,423.18
1^1,726,81 119,^18.44
t 6,143.90

1 1,643.20

Total
Expense
1 49,282.02
46,053 23
t 96,335 26
•

7,944.60

67.79
66o07

216.67

142,371.44 111 .688.11
39,709.59
11.472.13
WEBIT.W H T B O r

« 65,259.56
62,481.73
nsr^thb'

I 6,840c08

|1,800.01
1,300.01
*2,866062
I

Number of
Employees

t

# 1,92169

8,895.11

•

Cheek Collection Function
(Helena Branch)
The number of items handled through this function at the Branch increased dur­
ing 1033 aa compared to 192?<>

A comparison of the number and amount of various

classes of itema follows:
1923
Items Drawn On
Helena (Clearings
Montana Banks (Except Helena)
Head Office Distriot
Othei F.R. Districts
Treasurer of U.S.




1927

Number

Amount

Number

225,000
2,039,000

$ 127,168,000.
155,361,000.
16,575,000.
37,890,000.
17,017,000.
l”sST,'5n,66o.

218,000
1,829,000

12,000
94,000
141,000
Ml'i, 006

20,000
82,000
132*000
i , 2$I,000.

Amount
I 106,996,000
140,255,000
28,406,000
31,599,000
15.632.000
l 322,888,000

70

DIRECT SENDINGS TO OTKSR HF.S2HYS BASKS
BY OUR MEMBER BANKS 1928 AND 1$2J

TWIN CITT CLEARINGS THROUGH FEDERAL BESERVE BANK
OF MINNEAPOLIS FOR 1928 AND 1927

Amt. of Items
oa .M r ttAlfc
Jan.
Feb*
Ma*.
Apr,
May
Jon*
July
An^c
8ept.
Oct„
!&▼.
Dee.
Total
Ato by
Memthr

Ant. of Items
on St. Paul Bka

78,006,625.
ll».434.386.33
134 .636 .150 .1*6 71.184,.23**
I55.793.6l4.76
83.759.009.59
77.100,581.91
147,878.167.09
75.795.W8.19
X55 .305 . S.75
17
82.1*83,687.02
X 69 ,831 ,222,88
,
165 ,648,387.65 79.318.193.56
461 008.94
X 6l . M0 .
t7
960.56 79, ,
82,870,7^2 33
189.598.532„2>»
223.026,408.11 10X.X95.136o 28
89.3S1.W9.1
*®
184,485,710.38

185. l 6v 70Q
.74
2 . ,742,417.95
025
168, ,
811 868.16




.

991
82, ,
662 230.55

Grand Tot»l
1 9 2

& __________

227.441,011.70
206.020.385.02
239 ,552 .62^.35
22**.978.71 00
*9
231,100,824.94
252,314 .909.90
244,966,581.21
2V*,201,969,50
272 ,1 69,27**.57
*
324,221,544.39
273,866,859.84
276.554.450,J L5

Grand Total
— 1221___

223 .670.207.59

Daily Ate rage
Clearings
1928

221,
460.13
202,
885.83
223 .lA9.15
270.
832.73
174 .1*34 02
167.
923.30

Amto Held
Over

1937
24x,700.09
196.
475.56
194.
990.72
2x3 .26x .98

1928
XX6.990

251.474,098,71 2380520,
447.52

. .

208,
751.36 259,393 35

1927_____ 12g8

123,026

103,328 107.076

X85.978.X95.10
103,104
232.755.490.01
112,5x2
2x7 .036 ,56U.X7
115,898
209.629,487.84
2X2.355.99 1X9.X24
237 .831 .836.56
890.53 XX8.3XX
220,898.227.89 X85.XX3.26 225.
278.47 X24.879
230.61*3,5l*9„23 176 880 1*0 276,
274. .1 0 1x2,258
066 *
26X.950.572.87 227,
720.51
7
302 .966,0 *
7.85 2X4,277.20 275. x0.66 130,38
113.61
285.XXU.706.02 X85.270.40 297,903 34
124.585
2 5 V 769.885 18 m JC a769.3s 502.117.96
s L.
3 , x2 , .X8
1 720
2 ,862,21* ,370.31
5
1.394,986
2 ,505, .2*
016
3,0X7.689. X8l .57
*
-

Amount

Number of Items

123,122

113.853

112,130
106,876
115,
1*85
121.152
113,381

127.724

119.557
.jama.

,
411,312

116,249 117,609

1321

11 352,661 3t
. 9 . ,768,25
901
12.7 4 3 , ^ 3 5
12 ,
259,063 41
10, .
937 320.50
11 . ,031.09
376
13 . .
230 949.26
12,546.363 al
12,708.537,4:
11,438,879.3^
11,773.684.71 11.446.354.26
13 .M51.992 25 12,711.949.17
12 ,294,583.61 12,270,
560.29

11 , .859.34
213
10 . * .
51 6 647,83
11 ,498,
744.02
ll.389.ft7.52
12 , ,
061 105.92
12. ,*
292 129.11

12.1S0.755.29

143, 266„923.25

11* ,
2 658,692 55
U , 888,224.38 11.938,910.27

BT MONTHS

COMPARATIVE FIGURES FOR TBANSIT DEPARTMENT

MINNEAPOLIS 09LI

Daily Average Number
Daily Average Somber
Dally Average Number
Daily Average All Daily Av. Trans •Items Daily Average Mocfrsr
of Transit Letters
of Transit Letters
of Return Items
Other Items Sent
Sent Direct by Oar
of Items Per Person
MOyM-.... ..... ........ Received__________ _____ Sent
___________ Handled______________________________ Member Banks
____ __________

1^28
January
February
March
April
Kay
June
July
August
September
October
November
December
Average by Months

1221

151U
1565

i44o
1H20
1421
1583
1590

1538
165s

1616

1438

1928

1927

192s

1524

1636

1172
1001
966
1054

1383
1328

71.988

1229
1292
1260

72.325
73.967

1526
1563

1^98
1US3

1771
1651

1653
1464
1527

l6o4

1527

1496

151*0
1600
1691

1555

1561
1666

Unpaid

MONTH

1627
1633
1585
15*7
1591
1577
1581
1570
1570

970
ll4o
1125

1068

1303

1256

1560
1540

1377
1488

1171
1298
1377
1451
1251

1588

1139

1308

Daily Average Clear­
ing Items Missent

ll4l

1166

Daily Average Out of
Town Items Missent

42
^3

42

45

1927

1928

1221

1928

1927

52

m i

 by Months
average


1927

i486
1US6
1H7H
1U69
1494
lj7
lg
1U63

1531
1577

Daily Average Clear­
ing Items Returned

January
February
March
April
May
June
July
August
September
October
November
December

iqas

?S
42
33
W

42

40

34

19
21
25
22
25
32

43

31
30

24
22
21
19
21
24
25
27

*7
36
28
22

30
21*
24
16

29

23

49
52
50

50

%
48
48

44

24
29
27
42

30
24

2?

28
31

46

5k

}3
*
^3
4o
46

53
4o

49
52

21

40
3^
27
32

45

49

36

32

50
36

12ZL

1927

1928

1221

70.31
*
72.931
*

69.633

1928
4680
4493
4092
4688
U315
4582

49a
4867

1072

952
985

72.166
72.373

69.788
71.283
71 .>*09
67.372
74,684
79 .**07
84,314
85,111

7^.273

69.169

71.782

68.700
65.339
72,315
77.996
80.305
76,9^6
72.530

42fl

1*485
4426
4619
4487
4535
4912
4982
49?o

1149
1156
1246
1159
1181
1181
1082
1182
1229
1252
1316

4636

4689

1184

4732
1*625
4677
4829

4940

4560
4554

1027

1042
1086
1106
1044

1026
1061
1119
1156
U 55

1064

Daily At . No. Banks

Daily Avo Ho. Draft#
Remitting in Other
Received ! Other
Ln
Than Twin City Exeho Than Twin City Ixch.

1927
306
310

1228

1221

300

290

1228

294

346
329
3*2
316
319

29^

312
295
283
289
278
285
282

Discontinned
.

m
291

299

302

301
295
293
286
283

292

316
302

304

292
300

Daily Average dum­
ber of EmDlojxees

1928

1221

70
69

81
82
80
81
78
79
77
74
76
75

68
68
70
68
68
67
67
69

m

296
221

22

75
23

293

310

68

77

294

CO
FEDERAL HESBHVE BABE OF MIHHIUPOLIS
B8P0RT OT THE TRANSIT DgPABflOBT FOR TH» TttAB 1QP*

M
OSTB

CLBARIHQ3

1928

ffomber

338.218
323.676
August
337.750
September 351.M37
October
109,690
*
Horember 383,Oft
December >07.799
M.200.M77

75.278,627.1t5

66. ,a 7.82
806
800291,151.U7

76 ,602.858.90
82c310.7lW.lM

88.M53 .162.99
85 .688,552.31
86.353 .817.59
93.317.117.88
llM.53M.Ml8.i5
99,6^.850.57
99.7MMil'Sl„^8

16.372.M45

*2 ,113 .611,259.05

350*C&O

Monthly
Ave , Amts

Aaoant

1.268.895
lMM.892,
809.27 1,213.117
I 63. 868.l 68.l 6 l.MoM,963
i 56 . 87M5iM.S2 1.305.*7
.
l 60. 2M. 7ft.M2 1.351.378
0
179.899.815.23 1.373.915
167 .929.093.91 1.28S.MMM
171,722,2000* 1.305.173
197»38M,623.1S 1.307.213
Mft
228,322,772.55 1 ,567 ,
192.90*».221»59 1 ,418,963
187.365.791.66 1.567.373

320,268

Monthly
Ave, Noo
Items

a soE-imsgB

162,206,lt83„72

Jane
July

total

m

l?W$>»r.

Amggal

January
322.H93
February 310,99*
March
377.08M
April
317.M2M

May

m

♦ 1 .0M9 ,079 ,666.65

1.36M.370
I 176 .13U,271.58

Orand total Item

Grand total amounts




othsb M sn y a BMBg

Vogbex.
83.956
70.7*
77.0*
72.0M1
71.538
76.937
77.818
77.813
71.M92
86,611
71.3M5
83.1MM

Amount

direct to buies a
ortas n a m districts
Ihmber

2 ,9 *
2.917
3.M39
.582
I 193
M
,201
22.8M3,371.50 M M
.M O
22 .O92.278.M3 M.818
2M,W8s
0bMc06 H.263
26,22M,289^52
.511
23 .236.7 9 .7 9 , .323
2M.132.7&.27

20,778,122.M
9
l8.l6O.79M.2M
20,* 2 „j0M„05
a,05M,MlM.56
21,0SjM8
220=22
23.M66.592.02

22,317,186

*3,590,001.333.89

3.935.M78.09
3 ,7 7 8 .7 * .8 7
M,027.8660 66
M.127. 5M 7
1.6
M,169, 050.50
M,56i,877.17
M 600, 160. M
,
6
M,688,123 .58
5.32M.535.62
998.M17.M0

*268.
303 .999.15

Amount

233.579.89
228.980.50
2 89.756.ft
*7,258.58
503,
919.23
257. .51
557
■gflLSPBJB

10023U
*55.028.Ml5.lM

Number

59.192
6 1 .9 *
63.930
57.237
p . 851
60,700
-gUQrt

Amount

7 c6Mi,179.05
7 . 070,39507
8.66*,S2M.5©
7 . 8* . 3 7 6 . *
7.876,M31.3«
8»5M8,992.2J
8 . 099, 020.19
9.02M.156.M0
7 . 825. 68M
.85
lO.5 6 .629.97
282
9,206:713

&

76M.M6M
*100, M,685.95
87

*3.103,307.95

63.705

853
*M,585,
701.26

or ths
TOITBD STATS8

tr u sosr b

212.7MM.01 6l , 7M
2
177.332.89 57,228
2f t . 056.Cl 63.225
207.lOO.69 75.777
273,
020.28 f t , 6lM

»

•
913

. ft

M.089
*22 . .
358 666.60

ffnmber

830
9W
899
789
739
772
831
I 705 6 .10
900
5 .1 1 2 .9 ft. 02 .
1*056

M9. ©
0

920,503

76,709
*8 7 , 23 ,305,55
U

Aworot

TO 008 HWr.Wfi BHA.HCH
*T OS

*258,608.99

*8,1*06,223.83

MINNEAPOLIS AND HELENA BRANCH
OPERATIONS 07 CBSCX CLEARING AND COLLECT 101 DEPARTMENT
Detailed Classification, lumbers and Amounts of Items Bandied by Months daring 1928 with totals for 1924, 1925, 1926, 1927 and 1928
(In thousands only <.000 omitted)

anth
1928

Local Banks

So c
*an.
T
Feb.
Mar,
Apr.
May
June
«uly
lug.
sopto
0cto

Amount

33*

142,317

322
393
332
335
352
336
3%
:59

127*091

ITEMS DRAWN OH BASKS IB OWN DISTRICT
Interchanged
Branch and
Ourselves
Other Banks
Head Office

Amount

Ho,

10

65,268

9
9
9

1427

64,655
67,416
74,434
75*025
85.927
78.937
91.198
85,9H

No*

396
4?3

151,273
143.712
146,809
162,103
153,032
157,077
175.3*5
209,406
176,693
173.124

9
9
15
13
10
10

otal 4352

917.983

119

•TOWa
Dec.

421




8
8

115*038
90,972
*5,769
980,550

Amount

1360

SB
152
s

1^6
1U69
1H76

X770

86,325
75.914
810
467
87,756
94,263
100,896
97.328
98,642
107,547

134.026

Ho

2
2
2
2
2

2

2
2
2
2
2

115.596
114.681

2

18410 1 , 194,441

24

ITM S DBJLKS OH BANKS I ?
I
Other ^ fed, Res 0 Districts
Other Re­
Direct
Treasurer of
serve Bks,
Sendings
Dnitad States

Amount

1.993
1.315

1,221

1,151
1,242

1,300
1.276
1.522
2,050
3*092
1,656
JLSfii.

19.679

No.

3
3
3
4
4
4
4
5
4

6

4
4

46

4,600

91
77
84
79
80
84
86

4,686

90

5.325
5,998

79
95
79
2.1

3.935

3=779
*»0
O28
4,128
4,169
4.562

4,704
A M l

55o029

Amount

23.173
20,455
23,456

23.634
23.791
26,199
27.699
25.576
27.787
30.747
26.477
..JZ J99 ,

Ho,

Amount

74
8.958
67
8,357
9.930
73
9,062
87
9.286
77
70
9,849
74
9.522
77
10,555
70
9.W 3
88
12,517
73
9.7te
_Z L _ . J O J O O .

1015 306,193 906

117 891

TOTAL TOH
1{
)28

Ho

..

1941
1840
2135
1976

2034

2064
1967
2001-

2005
2395
2162
2 V4
-5

TOTAL TOR

___ 1227—

jssm i He.
1926
331.1
301,
1756
338,791 2146
343.877 1998
354,585 1910
390,836 2026
372,39* 1895
389.358 1955
413=37? 2008
510,824 2252
425,840 2143
418.447 J 2 S 2 .

Axncrrnt
’

267 ,n o
334,089
324,450
32i!, 824
359.887

S1.855
7.206
3*0.018

% 0„622
413,744

382.672

24874 4 ,591,766 24238 4,277,152

nm k\ m i r ™

'm**

(Mlnneapolle Only}
The Federal Beeerve Boardfs Functional Expense Manualf a*sign* to the
i
Federal Beserve Agent9e Office the Statietlcal and Analytical TJhite issues of
Federal Reserve Votes, Bank Belations and Bank Examinations^
The cost of issuing Federal Reserve Iotas in this office* including
records and reports,

during 1928 was $4,099,7? and for 1927 was $3,180,44,

The

increase represents larger paymsnts for officers and employeee salaries,
Bank relations expense for 1928 wae $6,772,90 and for 1927 $6,232,12,
All of one employee'e time was charged against this Unit during 1928 and in 1927c
60 per cent of one employee's tine with salaries paid of $2*451,24 in 1928 and
$1,320,56 for 1927,

Officers salaries allocated to Bank Belatlone during 1928

were $3,849,94 with an average of „55 offioere in the Unit and $4,347,51 in 1927
with 067 officers.
The total expense of the Statistical and Analytical Unit (Including Ad­
ministration) was $11,505,16 for 1928 and $13,012,67 in 1927,

The net deoreaee

in the total expense occurred through a reduction in official salaries of $1,289,91
through the leaving of Mr, Xbereole and $744«08 in employees salaries.

Other ex­

penses increaeed from $1,043,92 la 1927 to $1,570,43 in 1928, most of the Increase
being due to traveling expenses.
Monthly letter expense increased slightly In 1928 to $3*393,37 from
$3,359,14 In 1927,

Printing costs decreased $138<>75 and postage increased $172,98,

Library expense Increased to $1,884,43 in 1928 from $1*461,30 for 1927,
a librarian spending full time on this unit during 1928 as compared to an average
of o62 employees in 1927,

Book costs increased $150,, other expenses varying

J
-

little from 1927a
Bank Examinations total expense for 1928 was $24,843,76 as compared to
$25,609o62 in 1927,

Officers salaries and other expenses increased and employees

salaries decreased,

During 1928 an average of ,94 offlcere and 3,23 employees

were employed in the unit and in 1927 an average of o89 offlcere and 3,72 employees^

lumber of
Officers
,55
First Balf 1928
.55
Second Balf 1928
Total 1928

bak m m m
Officers
lumber of
Salaries^: _Jtoployee*
,98
i 1,924,97
k
1,03
UHftJQL
i
I 3,849,94

Monthly Averages

t

First 8*lf 1927
Second Half 1927
Total 1927
Jtaat'aljr Average



a80
,55

$

%

320,83

♦ 2,560,02
1.787*49
* 4g347, 51
362 29

Employees
Otter
Salaries
1,204,80 * 320,78
1*246,44
A5&J4
3,451.24 $ 471,72

,61
•60

204,,27

*

$

593.48

i 1,320.56

♦ 361.72
• 222*33
$ 564.05

i

(

110,05

39,31

4 7 .00

Total
*ipen®e
* 3,450,55
3*322,35
6,772n90
*

564,41

♦ b0515,22
2.716,90
6,232,12

r

519,34
7 r
i

STATISTICAL
(Including Adminiatration)

flrct Half 1928
Seoond Half 1928
Total 1928

Number of
Offioera
Offioera
Salariea
" o30
'"liVoBS'oTSS"''
'
1,060 ,02
.30
iijio o ,04

Monthly Average

#

Firat Half 1927
Seoond Half 1927
Total 1927

o90
o30

Monthly Average

Number of
Employees
4o41
4S2

176oOO

1

Other
ISxpenae
I nd,94
684,49
sw zs

282-50

662o89

#

#40861,12
S»717o66
$,878,7+

660.60
493.42
|i0643o92
#

Total
Sxpenae
#6,693.12
6,812.04
#li,fei8.16

#

I

4 98
4 41

♦2,414 ,98
978,00
VS^HTjr
#

Employees
Salariea
W 0927
3*907,63
ITO'.W tp

714,89

130,87

86,99

#

968.76

#7,826,60
6,186.07

# 1,084,38

BOHTHLT LEVIES

Firat Half 1928
Seoond Half 1928
Total 1928

Postage
foSOoOO .
350 oOO
»i„600o
06

Printing and
Stationery
iOTo'isr
1,123,26
#2,393,37

Monthly Average

•

I

Firat Half 1927
Seoond Half 1927
Total 1927

#

477,02
360,00
n s f o W

<10321081
1,210,31
P„fc32,12

T X 'm 'o Y i

Monthly Average

#

1

#

83,88

08 98

Total
..... t t ;w .u
1,473,26
# J,J!8So$r

199,46

#

282,78

# lo798,83
1,660,31

211o01

279,92

UBEUKT
Number of
Employees
ioOd
loOO

41,169,49
714,94
#1,484,48

t 80 ,00

# 37o74

# 29o62

#

9,77

#

#448,97
278,80
Iw r u r

•

o71
o54

Flrat Half 1927
Seoond Half 1927
Total 1927

197o89
l5Br„w

Other
Sxpenae
latois
12,00
lifHSf

#176,96
278021

#114o19
88,67
#202„6l5

# 78,66
,26
1
80

#

816,67
648,63
|l„46l,50

# 80,62

Firat Half 1928
Seeond Half 1928
Total 1928
Monthly Average

Newa Service k
Subacriptions

Books
#32iJ.*i
26o06
rar.*

# 37,93

# 16,91

# 6,31

#

Salariea
144676b
480 cOO
#960,60

Monthly Average

Total

167,08

121,77

BASK BXAMDIATIOSS

Firat Half 1928
Seoond Half 1928
Total 1928

Nizraber of
Offioera
"o94
.94

Monthly Average
First Half 1927
Seeond Half 1927
Total 1927
Monthly Average




Offioera
Salaries
$3,055 00
3„0E6,00
}e„110 n
00
I

•83
-,4
'9

Employees
Salariea

zd z

l f 09Oio6O

3ol4

3,668o08
#•^476,58

809,17

#2,876,00
2„820,00

#

Number of
Bnployeea

449.88

Other
Total
ISxpenae
Sxpenae
#5-,880 ,40 #12,812,90
6,407,78
12,030,86
#11,253 oil1 f K S W M -

622 - * #
!6
4o02
3,42

938,18

# 2,070,31

#4„779,62
4r664083

#6,143,48
4,726,81
#I5o8W.‘
SY

#130497,98
12,111,64
|24c 609,62

#

#

# 2,134 13

778,69

06,86

o

A N N U A L

BEFORT

Examinations or credit investigations of all state member banks borrowing from
the Federal Reserve Bank were made during 1928c State members borrowing heavily or con~
tinuously were examined twice. The examination# and credit investigations made by this
Department in the various states in the Ninth Federal Reserve Distrlot 'were as follows:

CredilT~
Inves'tigat
Minnesota
Montana
North Dakota
South Dakota
Wisconsin

Examinations
--- j----

6
26

25
30
1
14

i
16
3

x

2

IT

T

3ummary of Examinations, Mileage, Expense, Etc

Examiner
P•
Bailey
Herbert Hallenberg
H. D. Sharratt
W. A. Cutler
H. C. Jones
A. A. Hoerr

Assisted at Credit
Jnves'bi^a'fcionsi
H. C. ‘ones
J
H. D. Sharratt
A. A. Hoerr
0. C. Schiefelbein
W» A« Cutler
H. C. Timberlake
L. H. Powell

Credit In­
vestigations

Examine.*'
i

7
30
20
14
£

2

.1111
111,
11,1

1

Total
Number
5
7
52
20
14
6
8b

Exclusive
of Salary
451.43
1,023.76
668.37
366o94
47.68

Numbor
of Miles

Total of
Reeourcas

3,430
27,199,936
9,940
61,279,990
6,385
14,786,867
4,540
6,393,924
420
4,718,759
26,400 $115,4^6.660

20
4
9
2
1
1
1
m
W

m

“7 "

* S40 21
f3,632ol0

6 :m

Offioe Work
Reports of Examination of Rational Banks
Number of reports receiveoL irom the Chief Rational Bank Examiner9s Office . ,
(The cost of these reports aggregated |7,006o
00 for the calendar year)

1*262

127 duplicate oopies of the reports of examination of Montana National Banks
were received from the Chief Examiner°s Offioe, and the cost of these addi­
tional copies aggregated f286.76 for the year.
All of the criticisable paper contained in the reports of examination of banks
that borrow, with the exoeption of Montana banks, was listed alphabetically
for the Discount Department.
Reports of Examination of State Member Banks
Number of reports of examination received from the various Gtate Banking Depart­
ments in the Ninth District of state member banks examined independently Ij them




16

7?

Page 2.
All reports of examinations and oredit investigations made by Federal Reserve
Examiners of state banks in the Ninth Distriot were typewritten in this offioe and one
copy was forwarded to ths Federal Reserve Board, one copy retained for our files, one
copy forwarded to the various State Banking Departments in the Hinth District, and one
oopy forwarded to the bank examined. One oopy was aleo forwarded to the Helena Branch
for all stats member banks in Montanao
All of the oritieisable paper contained in the reports of state member banks
that borrow, with the exception of the Montana banks, was listed alphabetieally for the
Discount Departmento
All of the report8 of state member banks were analysed on comparative analysis
sheets to ascertain the progress made from one examination to the next*
All examination reports, both state and national, were analysed on comparative
analysis sheets, one oopy furnished to Governor Geery and one to Deputy Governor Moore.
A ratio and percentage analysis was also made and written up on cards filed in the
Agent'3 Office, which show progress made by each bank as shown by successive examina­
tions O
When state member banks were shown by reports of examination to be in an unsafe
or unsatisfactory condition, special letters were written either to the bank or to the
State Superintendent of Banks, calling attention to the unsatisfactory and oritioised
matters, with a request or direction that corrective action be taken. Copies of replies
received from such member banks were forwarded to the Federal Reserve Board.

Reports of Earnings and Dividends and Reports of Condition
Approximately 4,400 reports,of earnings
were received, checked and recordedo

ad dividends and reports of condition

Applications for Permission to Exercise Fiduciary powers Approved, Etc.
The following applications for permission to exercise fiducl
approved by the Federal Reserve Board during 1928a

Name of Bank
Cifcitens Hattonal Bank
Gogebic national Bank
Midway National Bank
First National Bank
Winona Nat’l & Savings Bank
U< S. National Bank
National Bank of Montana
Seourity National Bank
firrt National Bank
National Bank of Commerce

Location
Houglrfcon, Mich.
Ironwood, Mich.
St. Paul, Minn
West Concord, Minno
Winona, MinnP
Deer Lodge, Monte
Helena, Moxrto
Sioux Falls, S. Dako
Yankton, S. Dakc
Superior, Wis0

Date
Approved

y powers were

Capital

•

|i<5o*6oo
12-21-28
12- 7-28
2-14-28
7-27-28
3- 5-28
3-22-28
4-24-28
8-24-26
2-27-28

100,000
100p000
50*000
200r000
100.000
250*000
250,000
50p000
150*000

Limited
Full
Full
Full
limited
Full
Full
Limited
Full

Thirty applications of individuals for permission to serve at the same time
as directors, officers, or employees of a member bank and not more than two other bank®
ing institutions under the Clayton Aot„ were reoeived and approved by the Federal Re­
serve Board during 1928o
Ninety-nine applications affecting the stockholdings of member banks in the
Federal Reserve Bank wore received and approved during the year0

Total number of applications referred to this offioe for recommendation . . ♦ ♦ 35
(Of bhese, 7 were granted charters by the Comptroller of the Currency, charters
zation wa




78

Page S«
Information regarding suspended banka obtained from State Superintendents
During the year at the request of the Federal Reserve Board, we mailed forma
to e*oh State superintendent of Banka, requesting information on suspended non^member
^anfcs* Thea© fonts show the capital, surplus* deposits and borrowed money of the
banks It the date of ©losingj also the primary cause of closing end contributing causes.
When the information is received from the various 8tate Superintendents, it is then
forwarded to the Federal Reserve Boardo

B A M CHANGES IK 1928
Total maaber of member benks in the district Jaa, lp 1928 .....748
New national banka organised......... . .......................
State bank admitted................... .............. !.!!.!.!........
....................... ...............

m

National banka absorbed by non-member state institutions.....
1 *
National banks absorbed by member state institutions........ .
1
National banks absorbed by other national banka......... ........
6
National banka auooeeded by other national banks........... .....*
3
National banka liquidated*.................. ............. !!..!! 12
State member bank conaoli dated with non»$fimber state institution.! 1
State member bank withdrawals.................................. 4

23

Total number of member banka at the end cf the year............

State Member
Michigan............... .....

g

national

— y 4

SSfc:::::::::::::::::::::
Sorth Dakota.................
South Dakota.................
Wisconsin....................

729

*

ls6

.
SftS l

«s
gQ
~ 1W

A» Member
At the close of the year, there wore 789 member hanks in this dietriot.
as compared with 748 member hanks at the beginning of the year. There was a net
loas of 16 national banks and 4 state banks,, The total membership at the close of
1328 was diTided into 672 national banks and 57 state banks. Ths*new membert areName of Bank

First National Bank in
Saint Paul National Bank
First National 3&ak

MINNESOTA
Laicefield
Saint Paul

18
76
21

NORTH DAKOTA
Stesle County National Barik of




18

79

Page 4.

Brookings national Sank
Lake Norden national Bank

SOOTH DAKOTA
ferookings
Lake Norden

First National Bank of
Hational Bank of Commerce of
Iron Exchange Bank

33
XT

WISCONSIN
“ Bangor
Superior
Hurley

33

102
68

MEMBER BANKS SEVERING CONNECTIONS WITH THIS FEDERAL RESERVE BANK DURING 1928
NATIONAL BANK ABSORBED BY NON-MEMBER STATE INSTITUTION
Date
T Z Z zs

1to) of Bank
American National Bank
(Absorbed by Bank of Spearfish)

Location
Spearfish0 S. D

Noo of Sharet
Surrendered
30

RATIONAL BANK ABSORBED BY MEMBER STATE INSTITUTION
9®6-28

First National Bank
Richey, Montana,
(Absorbed by First State Bank, Riohey)

18

NATIONAL BANKS ABSORBED BT OTHER NATIONAL BANKS
4-23-28
5- 4*28
8~27~28
1-23-28
5-29-28
8® 4«28

Hibbing National Bank
Hibbing, Minn,
(Absorbed by First National Bank, Hibbing)
Rioe National Bank
Rice, Minn,
(Absorbed by First National Bank, Rice)
First National Bank
Long Prairie, Minn,
(Absorbed by Peoples National Bank, Long Prairie)
Merchants National Bank
Scobey, Monto
(Absorbed by First National Bank, Scobey)
Farmers National Bank
Ellendale, N* Do
(Absorbed by First National Bank, Ellendale)
First National Bank in
Valley City, N. Do
(Absorbed by Security National Bank, Valley City
which changed its name to First & Security Natplc Bank)

76
18

21
18
30
90

NATIONAL BANKS SUCCEEDH) BT OTHER NATIONAL BANKS
9-19o28
10*29*28
9 - 7-28

First National Bank of
«eded by First National Bank in
First National Bank of
(Succeeded by First National Bank in
First National Bank
(Succeeded by Steele County National

Lak»fleldD Minna
Lakefleld)
Jacks on , Minn,
Jackson)
Finley, N. D
Bank, Finley)

38
76
36

NATICKAL BANKS LIQUIDATED DDE TO INSOLVBNCT
1«11=>28
2-27-28
6-16=428
7 20-28
2» 4-28
3~16~28
6-16-28
2m2C
10-29-28
4 - 3-28
6 -22-28

New First National Bank in
First National Bank,
First National Bank

Security National Bank
First National Bank
jnal Bank
First itional Bank




Lambert on, Miraio
Bast Grand Forks, Minn,
Ri3e, Minn
Avoca, Minn
Hop®, N D
MinnemukanJ No D
Carringtonp N, Do
FargoD N D
Lisbon,, X. Do

RATIONAL BANK VOLUNTARILY LIQUIDATED
Aurora- Minn

80

18
If
ie
18
u

Pago 5o

Sim
5-19^28

MEMBER BASK CONSOLIDATED triTH NOg-MBMBER STATE IMSTITOTXOR

Enderlin State Bank

Enderlin„ No Do

56

STATE MEMBER B A M YflTBPBAWALS
6«18®28
7~1X~28
.
9°27«28

Hook County Bank
Merchants Beak

Luv©rne, Mi t t
tfo
Winonap Minnt

Joliet State Bank

Joliet, Monte

46
150

MEMBER BASKS THAT HAVE BEEN ABSORBED BY OTHER RAW S Asm rorrre w m > wn*
i r m r m M m m mbe" m u x a m
m zu i m e m m n r ^
*sl9 of Bank
1 T 3 F 88 bankers national Bank
Mlnheapelle Minn.
M.
(Absorbed by Metropolitan national Bank,. Minneapolie)
12-14-26 Pirst national Sank of
Litchfield0 Minn(Suooeeded by First National Bank in Litchfield)
11^19 28 First National Bank of Winnebago City
(Succeeded by First national Bank of Winnebago)
9-21>28 Brookings National Bank
Brooking*, 80 Be
,, _
(Converted to Brookings County Bank* Brookings)
11-2T-28 State Sayings Bank,
Lanriw, Mich,
(Absorbed by Merohaats & Miners Bank, Calumet)

CLOSED MEMBER BASKS THAT HAVE HOT AS JET SURRENDERS'; THETft rtftfnr
Tits federal reserW &Ahk

tv

8 First & Moorhead National Bank
12-10=28

Cass Couaty National Bank

Casselt^# H ^

LIQUIDATING MEMBER BASKS THAT HAVE NOT AS YET SU
...... y y y y ■'
........ y - - ; .. l T

12°lfr 28

1

C

l o

n

a

l

B e ja 3 r

Milnor National Bank




81

TH M M

fflOTTO ■ Q C B

Since the first of January 1928} there hae- been an actual increase
in the circulation of our federal Beserve Votes of $4,049* 000„
there had been a contraction in circulation of $7,666.000,

During 1927

As the Jank held

notes to the aaount of $7,304,000 on December 31, 1928 and $5,686,000 on
Deceaber 31, 1927, we wist add $1,618,000 to the total of notes in circulation
to obtain the total of notes outstanding as indicated by the records of the
federal Eeserve Agent on Deceaber 31, 19280
The issue of notes during 1928 by the Agent totaled $40,015,000 con­
sisting of $37#915,000 In new federal reserve notes and $12,100,000 in notes
tfhich had been previously Issued but were still in good enougi condition for
further circulation*

In the previous year $21,209,000 of new notes and

$15,485,500 of used notes had been issued to the bank or a total of $36,694,500*
Although more used notes were issued in 1927 than in'1928, the Agent had on hand
at the close of 1928 only $2,790,000 in used notes in contrast with $7,350,000
of such notes held on Deceaber 31a 1927<,

During 1927 the Bank had returned to

the Agent $20,876,600 of notes fit for further circulation*
of such notes were returned by the Bank*

for 1928 $7,540,000

We have, in tbe past* tried to regulate

the Issue of new notes somewhat by the supply of used notes on band, but the
knowledge that the present sited note will be retired during the next year has
made it possible for us to issue new notes sore freely,
totes destroyed at Washington in 1928 eaounted to $26,808,035 or near­
ly $3,000,000 acre than the total destroyed in 1927*

This increase in the

destruction schedule is another indication that some notes, possibly fit for
further circulation, are being retired,,

It is also noticeable that sore unfit

notes of this Bank are being sent in for destruction by ourselves than froa all
other sources.

Last year and in foraer years, the greater portion of our

destroyed notes was sent to the Treasury Department by the other federal Reserve
Banks,
At the close of 1928 the Agent had on hand $12,739,000 In new notes
or $2,565,000 aore in new notes than was held on Deceaber 31, 1927.

Shipments

f r m the Comptroller of the Currency duriog the year aggregated $30,480^000,
confined almost entirely to $5, $10, and $20« denoalnations, with a greater
aaount of 10*s and 20fs than 5 #s,
<




Since orf

on

the Agent has received

82

.

the Basko

Iotas to the amount of $122,383* 000 have been reissued and

$347*593* 480 is the amount of the destroyed notes0

Of the $400015^000

issued in 1928, 2801 per oent was in 5*s; 35*7 per cent in I0 »s* 30*9 per
eent in 208s and the balance of .5.3 per oent in larger billsc

Of the total

amount in circulation at the d o e s of 1928, 19o9 per cent vas in 5*s; 30*1
per cent in 10*sg 40 ,5 per cent in 209s and 905 per cent in the higher
denominations*

fables covering the issue and contraction of cur note issues

have been brought down to date and will be found on the following pagess
Vote costs of $20(992*08 vers Incurred in 1928 but no printing
costs were assessed against us after April lsto

For the first four months

of 1928 ve paid printing expense of $17„750# the balance of $3,242o08 being
for shipping charges on new notes received from the Comptroller of the
Currency,,

During 19|9 the preparation of $77*000,000 of smaller sised notes

will be begun and probably finished,,

Ve have eetlasted a coet of approximate­

ly $60o000 for these notes and the added oost of redenption of our present
noteSo
TSD SU L

Bomber of
Officer*
first Half 1928
Second Half 1928
Total 1928

o21
o21

Monthly Average




$ 780,01

720,,01
l,440uOS
♦

Monthly Average
First Half 1927
Sscond Half 1927
Total 1927

Officer*
Salarie*

o25
o2l

6OO0OO

VoBtwr of
Bnployee*

6S7„51
1,267,51
$

105,62

feployee*
Salaries
$ 1,320.83
JLJS&Qasum
$ 2,620c83

,78
.77

120.00

$

ssmrsjBB-isms
Total
Septa**

$ 16.52 $ 2,057.36
,?2»40.
8JK&41,
$ 38.92 $ 4,099.77

$

218c 40

$

6680 SO

$

,53
.93

Other
tepeine

« 26.96
— 26,23
f 53.19

$ 3,180.44

t

♦

$" lt869o74
$

154,98

3.24

4.43

♦

341.64

$ 1,295.46

265.04

FEDERAL RESERVE NOTES RECEIVED AND ISSUED BY AGENT PURIMG 1926

U

NEW
4.200.000
1.620.000
2,240,000
275.000
660.000
479.000
800.000

Five#
Tons
Twenties
Fifties
Hundreds
Five Hundreds
Thousands

Fives
Tens
Twenties
Fifties
Hundreds
Five Hundreds
thousands

FIT FOR USE
915,000
3.245.000
1.550.000
690.000
280.000
405.000
487.000

,115,000
4.765.000
3.570.000
965.000
940.000
882.000
1.287.000
$17,524,000

$10*174,000

$ 7,350,000
RETURNED BY
BANK
FIT FOR USE
$ 1,290,000
3.160.000
2.700.000
180.000
210,000

$10,290,000
13.160.000
13.580.000
380.000
610.000

$ 7,540,000

$38,020,000

200,000
400,000

$30,480,000

Total • •
*

NEW
9.320.000
8.800.000
8,720,000
325.000
750.000

Fives
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands
Total - - *

$27,915,000

ISSUED TO BANK
FIT FOR USE
$ 1,905,000
6.506.000
3.630.000
320.000
490.000
125.000
125.000

$12,
100,000

IN HASPSOF AGENT DECEMBER 31, 1923
NEW
rau m j a
300.000
3.880.000
900.000
2.720.000
400.000
4.400.000
560.000
150.000
m
f
310.000
278.000
479.000
362.000
800.000

Fives
Tens
Twenties
Fifties
fbmdreds
Five Hundreds
Thousands
Total - - -




$

RECEIVED FROM
COMPTROLLER
NEW
$ 9,000,000
10,
000,000
10,880,000

Total - - -

Five 8
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands

HANDS OP AGENT DECEMBER 31, 1927

12,739,000

M i
28.1#
35.7
30,9

1„6
3 el
c3
•3
100, 0#

2,790,000

RATIO OF ISSUE BY DENOMINATIONS 1921-1928
1924
1923
1926
1925
1927
28.9#
31 c9#
30.8#
29.9#
25.4#
31«9
27*3
27.1
29.1
37.6
32.8
29.3
33.3
30o
9
33.3
4*7
3.3
2.4
lo2
24
3*
2
4 07
5*5
2.4
306
c
Z
o5
.8
1.4
cl
lo6
08
1,7
.6
.1
100*0# 100Oo# 100,0# 100,0# 100,0#

TOTAL
RECEIVED

TOTAL
$11,225,000
14.505.000
12.350.000
646.000
1,243,000
125.000
125.000
$40,015,000

m tk

$ 4,180,000
3.620.000
4.800.000
700.000
310.000
757.000
1.162.000
15,529,000
1922
34.2#
33.2
28 04

1.0
1.7

.1

c4
100,0#

84

m k

35.3#
31 o4
28.2
lo3
2.4
o4

1.0
ioo.oj*

FEDERAL RESERVE NOTES ISSUED TO BANK
COMPARATIVE BY MONTHS 1926 q 1928
1928
January
February
March
April
May
June •
July
August
September
Ooteber
November
Deoember
Total for
Tear

1328

$ 1,766pOOOo
8,688,000,
2,416„OOUo
l(,«»0n
000o
2 (.lTSjSOOo
4<,176c
000o
8 q 820pOOOo
5 j2~5 jOOOo
7,628„OOOo
8,7EO,,COOo
4,790(,00®»
6^086.000

|

#44,3800600,

1827

906t000
2,170,000
S3435,000
6,800,000
1 (,6*0 „000
8,146 000
6 f o,0001
10O86 (.000
6o
861s800
4,690,000
61
:E40 000
4 n66SnS00

#480?020
000,

# 1(,490(,000s
1,410,000„
2(,220(,000o
8,704,000s
10 70,000,
2.888(6000
4,980,000o
1,216,,000,
408000000o
8c718(,000o
8(,830p
000o
3p826nOOOo
t$8c8940500<

1326
t

880 000
2,300,000
2,498,000
8c706r
;000
2f860„000
2,888,000
10986(,000
2,480-000
4,788,000
6,820,000
6,710,000
3,820^000o

|40c
015p
000

FEDERAL RESERVE NOTES DESTROYED AT
WASHINGTON
COMPARATIVE BT MONTHS 1925 - 1928

1928
January
February
March
April
May
June
July
August
September
Ooteber
November
December




1928

| 2 ,088 ,800o
1,887,800
2p620(,700rj
1,899,600,
2;281r700
2(626,-400,.
2,600,700c
2(481200
2,888,700o
8,188,900,
2,887,800,
8 n489.888„
JWoWMIT, "

1927

I 8,081c900o
2 268-500
5,006,200-,
2-821,100o
2,177,800o
2,927,800o
2,708,200.
2,499,800,
2,886,100,
2,927,000„
2,082,700,
2,824,7S0o
Pl-i3S,9fc0o

t 2,849,400,
2,263,SOOo
2,197,888c
1,990,660,
1,827,800,
1,829 ,060,
1,4*8,180,
1,880,600c
1,792,860,
1,442,000,
2,880,280c
1,882cOOOc
?w ;iw „188 c

FEDERAL RESERVE NOTES ISSUED AND
DESTROYED SINCE ORGANIZATION
Issued
To Bank
1914
1915
1918
191?
1918
1919
1920

#

Z9099 0 0000o

39d45000Q0o
390265pO O
Oo
430360d O o
OO
40f2050000o
5200300000o
440580D
500o
4«07020000o
3808940600o

1921
1922
1928
1924
1925
1928

1927

1928

Total

280c
000c
13 d7420OOO o
9 p880d000 o
42,250,000
67 d14000000

t

40(,016,000c
848,294,000c

Destroyed
At Washington
i
t

898,966c
8,988,096,
9,421,640,
88,771(,808c
40(,788c,788c
49,748(,680c
88,784,820c
27,820(,880c
26pl78o896o

80,108,868c

sipsse^soo
28,970,888c
28(,808 ,088 o
t 847,898,480,

1928
i 2(606,600

2,672,100c
If811,660c
2 , 890,888 c
2,188,800,
2,447,800c
2,698,6800
2,066 (,800,
1,888,060,
2,084,200c
2p882p880o
lp803n
060o

w w , amsgariro

atsmmas or w A B j e m j i m
sB kjm iM

o m i m or t m as or p u w m at. 19?b.

Received froa
Controller
$ 143,5&0<,000
139,6*0*000
129,660,000
7*400*000
IQ,800,000
1,800,000
■ . 2.8QQ.QQ&
$ 435,?00e000

Fives
Tent
Twenties
fifties
Hundred*
five Hundred•

Thousands

Total o •

Be turned by Bank
-T9Jtofll... -$ 23,702,000
43.255.000
44.435.000
4.075.000
5.690.000
1.044.000
8«9_22*00C
$ 125,128,000

$ 139,700,000
136.920.000
125.280.000
9.250.000
10,490c 000
1.321.000
j LQQSu QQSL

$ 422,961,000

4,260o000
Fives
2,545,000
Ten?*
Twenties
1,020*000
25,000
Fifties
Handreds
30„000
non®
Five fandreds
K
Thousands
Total 4 7,880,000

3,323.620
4,362,280
2,554.760
206,800
287,900
41,000
J&kQBB.
$ U e888 360

230402,000
42.355.000
44.035.000
3.526.000
5.690.000
766,000
2 560 000
$ 122,333,000

Returned by
Minne*iK>U«

Returned b^

> 60, 368.500
51e430,000
37* 373*500
2,434,000
3*479,000
306,000
m .Q o c

$ 156,493,000

Ie bands of
Agent
Daceabor 31.19jA

Twenties
'
Huodreda
Five Hundreds
thousands




$ 163,102,000
179.275.000
169.815.000
10.775.000
16.180.000
2 , 087,000
nnic.
f
>
$ *545,294,000

$

Returned
jj Agent
By

Fives

Total

ZtibZS^dCllS.

I«*
Fives
Tens
Teenties
fifties
Hundreds
Five Hundreds
Thousands
Total o o

$ 167,282,000
182.895.000
174.115.000
11.475.000
16.490.000
2,844,000
_5*23g*GOO
$ 560^823,000

Returned by
OtherF.lJSta
$ 55*017 580
55,854,190
54,505 700
2,195,350
2f902,900
187,500
_____302*000
$ 171,865,220

M&A
$ 124,974,600
114*191,470
95,453,960
4,861,150
6,599*800
534,500
_ ^A lh S S S L
$ 347,593,480

la Circulation
ess§aks£-gL..l§gg.

s 4.iao,ooo
3.620.000
4.800.000
700.000
310.000
767.000

$

14,425.400
21,828,530
29.,426 040
1,838.850
3,890,200
508,500

$ 18,529,000

$

78,577,620

Issues* redemptions or exchanges of various United States Governneat securities* including Treasury Savings Securities redeemed at this office
or received from Postmasters after redemption by them3 which were handled by
the fiscal Agency operated by us for the United States Government, numbered
223,978 pieces and amounted to $l49,035,843o25 as compared with 181*529
pieces amounting to $170^657,000 in 1927c
Included in the above figures for 1928 are the Third Liberty Loan
bonds which matured on September 15*

Of these,, 22*920 pieces totaling

$13,359e450o 00 submitted in 3,476 applications, were exchanged for other is­
sues on or before September 150

The greater part of the Third Liberty Loan

Bonds, numbering 99*615 in coupon form* amounting to $18e189,400o and 25,682
in registered form amounting to $6,031,350*00, were submitted in 16*765 ap­
plications for redemption*

These figures are comparable with those of the

Second Liberty Loan Bonds which were called for redemption in 1927 and of
which there were redeemed that year 59,699 in coupon form amounting to
$14,679,250. and 17,939 in registered form amounting to $4*966*350 submitted
in 110 851 applications,.
In May, the Treasury Department made public announcement of its
willingness to purchase Third Liberty Loan Bonds direct from individual hold­
ers at a price of 100 8/32 and accrued interest

In accordance with the terms

of this announcement, 76 purchases amounting to $4560750„ were made for the
Government

In June, 141 purchases of thsss bonds, amounting to $673*500

at 100 2/32 and accrued interest, were also made0

Again in July and August,

additional purchases amounting to $2,613,250 submitted in 1,168 applications,
were nade at not exceeding 100 1/32 and accrued interest«

Altogether, 1,385

purchases totaling $3,743,500 were made for the Government of Third Liberty
Bonde during 1928 as compared with 422 purchases amounting to $1,196,050 of
the Second Liberty Bonds in 1927„
This Agency also handled during 1928, 6,201 orders for the
purchase of Government securities and 6,193 resales of Government securities
totaling $87,437,150o

In addition,, either delivery or payment, or both0 was

handled for banks and trust companies on 744 transactions in Government se~
curities amounting to $48j6270500o



There were also 578 transactions of

8?

miscellaneous general aerket securities aggregating $20853*221e

Altogether,

of these various transactions, there were 13,716 totaling $138,917,871„, ae
compared with 13,768 transactions totaling $155,229*160* in 1927»
Including short-term Government securities which vsre transferred
by wire, delivery of 41,035 pieces totaling $103,109,513*00 was mede on
purchase and resale transactions for other than our own account as compared
with 280308 pieces totaling $80*432,050 in 1927*

In addition, on exchange

transactions such as denominational exchange, the exchange of coupons for
registered securities, etc,, 33,535 pieces were delivered amounting to
$26,687,150 as compared with 30,999 pieces amounting to $23g96l,550o in
19270
This Agency handled subscriptions, allotmente, payments, and se~
curity deliveries in this district on ten offerings of ttnited States Govern­
ment issues during 1928. as compared with eight offerings during the preceding
year*

In such operations during 1928, 7*478 individual subscriptions con*

tained in 4,984 different applicatione were received,,
on these subscriptions was $58,327^000*

The amount allotted

Daring 1927, $61,578,100 was al«

lotted on subscriptions„
The fiscal Agency operated by us for the Governmsnt also re*
deemed 802,102 Government coupons amounting to $9,935,310 62 during 1928
as compared with 1,009,976 coupons amounting to $9*9X9*000 during 19270




GENERAL SERVICE

ADMINISTRATION

First Half 1928
Seoond Half 1928
Total 1928

PtJRCHASIHO & STOCKROOM

No. of Officers
& Employees
Expense
1.20
12,627.16
1.20
#2,610.S3

Number of
Employees
loOO
lo03

Monthly Average
Pirat Half 1927
Seoond Half 1927
Total 1927

#

Monthly Average

1

TELEGRAPH
Number of
Employees
First Half 1928
Seoond Half 1928
Total 1928

1.77
1*71

*7,013o88
#7f099.39
l
#14,113o2?

1,34
lo84

# 7,712.61
7.339.38
*16,061.89

Monthly Average

Expense

2o68
3o00

$1,968.09
$2,018.74
$3,986o83

Monthly Average

#
3 d26
2o89

$3,836.64
$4,000.31
*¥,*34.66
*

*
AUTOMOBILE
Number of
Employees

*1,237.03
*1.182,63
*2,419.66

Monthly Average

*
lo42
.80
-

*

193.90

*12,226.3,
fl2.6SB.13
*24,816.60

16.60
16.39

#11,979.78
11,870.93
*2$,860.71

#4,666.77
4,968.38
#9,626.16 •»
802.09

REGISTERED MAIL EXPRESS
Number of
Employees
Expense
2.00
2c 12

#1,626.03
#1.626.32
*3,141.36
262.61

#
1.60
1.98

690.37

Exc .36

790.60

#

#1,578.86
1.695.82
*3,274.67
272.89

#

OFFICE BOYS & PAGES
Number of
Employees
Emense
6.25
6.19

# 2,068.21

#1,626.48
#1.632.90
*3,168.38
#

5.76
6.06

* 1,987.66

263.20

#1,766.44
1,661.60
*3,306.94
#

276,68

EQUIPMENT REPAIRS
Number o^
Employees Expense

VAULT MAINTENANCE
Number of
Employees
Exoense

2.10
2d0

2.61
2.26

201.62

*1,402.36
924.64
*2,326.89

Monthly Average

16.00
15.81

339.68

Expense

loOO
1.00

*
PROTECTION
Number of
Employees

2.05
2.18

663.07

#3,778.74
4,606,73
*8,284.47

7037
9.61

332.24

#1,946,34
2,129.85
*4,076.19

Monthly Average

First Half 1927
Second Half 192?
Total 1927

7.69
8.26

Expense
*4,994.47
#4.491.68
*6,486.06 •
#

239.78

Expense

* 1,264.32
DUPLICATING
Number of
Employees

First Half 1928
Seoond Half 1928
Total 1928

*

MAIL
Number of
Employees

Number of
Employees
2.00
2.26

260.1?

*1,421.68
1.466.77
*2,877.36

1.00
lc03

# 1,176.10

First Half 1927
Seoond Half 1927
Total 1927

First Half 1927
Seoond Half 1927
Total 1927

*

601.41

Expense

Monthly Average

First Half 1928
Seoond Half 1928
Total 1928

436.46

*3,014.66
3.002.13
*6,016.98

1.40
lo40

Expense
*1,478.12
*1,623.94
is.obS.od

TELEPHONE

#2,838.80
#2.684.72
*6,623.52
*

2.16
2.15

460.29

#2,781.30
2.709.01
*6,490.31

#

457.62

#1,780.41
#1.669.73
*3,340.14
*

2.60
2.99

278.34

#1,766.60
2.177.16
*3,932.66

#

327.72

2 3Zt*'0$
**

"




"

"

”

#2* 68 ? 73

89

FILES AND OLD RECORDS
STENOGRAPHIC
Number of
~
Kunber of
Employees
Expense
Employees
Expense
Flrgt Hal* 1928---l O o -------- J*,Uff.W-------9^88------- 1 O l S . W
Ssoond Half 1928
4.12
2.888,17
9.78
8,010.80
total 1928
H l m . w
iwfsso?
Monthly Average

|

First Half 1927
Second Half 1927
Total 1927

6.06
5o80

544 *08

#3,877.96
3.672o61
"10507

Monthly Average

$

$ 1 0360.84
11*19
Hol5

620088

| 9,409.02
9,289.97
|1^ K M I o99
# 1,668*26

GENERAL SERVICE FUNCTION
(Minneapolis Only)
The General Service Function of the Bank includes the activities
which, by their nature, are for the benefit of other functions.
The total cost for 1928 of this function was f 78s203.89, with 80% of
one offioer*s time allocated to it and an average of 6I 0O6 employees*

The

total oost for 1927 was #79,651o06, with one offioer and an average of 04o28
employees9 time charged to the function.
Administration expense for this function decreased during 1928 as
compared to the 1927 expense, the 1928 total being | 6 0287o48 and the 1927 ex­
pense $60016o98.

The reduction in expense may be attributed to the assignment

of 80JG only of one officer’s salary to the function in 1928 and 100# in 1927.
The expense in connection with the maintenance of the stock room and
the purchase of supplies for 1928 was #S0
OO2oO6 and for 1927 #2,877o36, a
major part of the slight increase being accounted for thru salary increases*
Gross costs of the telephone unit were #9,486 0 6 for 1928 and
O
#9,626d6 for 1927.

The amount of tolls distributed to other functions in these

amounts were #2,326<,08 during 1928 and #2,687o76 in 1927, Isa^ing net telephone
unit expense of #70169o97 for 1928 and #60937O
39 for 1927, the increased costs
being due to salary increases *
Telegraph unit expense is discussed in conneotion with our leased
wire operations, and the Coding unit expense is shown on a separate sheet with
Transfer expense0
The Mail unit (Ordinary) expense for 1928 was #7,836^86 and for 1927
was #8,284o47o

During 1928 an average of 7c93 employees were charged to this

unit and during 1927 8o49 employees.

The decreased expense is accounted for by

salaries 0




90

OEHEHAL ggtYICE FUBCTIOH
(itinneapolisOnly) Continued

The cost of the Registered Mail end Express Unit reflected a decrease
in 1928 as compared to 1927, the 1928 expense being *3,161.36 and the 1927 ex­
pense *3,274.67.

During 1928 an average of 2.06 employees were assigned to

this work and In 1927 1<>74 employees 0
The Dnplloating Unit expenses for 1928 were *3,986.83 and for 1927
were *4,078ol9.

The Maltigraph, Addressograph, Photostat and Ditto, upon which

this report is issued, are operated by this unit.
During 1928 an average of 16.91 men were assigned to the Protection
Unit with a total expense of #24,820,60 and in 1927 an average of 15,95 em­
ployees, with a total cost of #23,850.71.

A majority of the Increased expense

represents salary disbursements
The total outlay for Offioe Boys and Pages for 1928 was $3,158.38
representing an average of 6o22 employees and during 1927 was #30506c94 with
an average of 6o41 Offioe Beys and Pages, all of the decrease being due to
salarleso
The Automobile Unit expense for 1928 lnoreased to #2,419o66 from
$2-528 89 for 1927, all of the increase representing miscellaneous repairs,
gasolinep oil and supplies.
Expense of the Equipment Repairs Unit lnoreased slightly in 1928

*60623062 from the 1927 total of *5,490o31.
Vault Maintenance expense deoreased in 1928, tht total oost being
#3,340ol4 for 1928 and #30932o66 for 1927 0 Most of the deorease represents a
reduction In the average number of employees In this unit during 1928 as oem*
pared to 1927 with a reduction also in the expense on account of look repairs
and inspection service.
During 1928 an average of 4o81 employees was oharged to Filing and
Old Records, with a total expense of *8,528„98, and In 1927 an average of
6o93 employees with a total cost of *7^460057, all of the reduction In expense
being due to salaries0
The Stenographic Unit expense far 1928 was *16,330.12 and for 1927
|18c698o99o

With the exception of a *100 Q00 reduction in Printing and Sta­

tionery supplies, all of the reduoed expense is accounted for thru lessened
salary expense due to an average of but 9081 employees in the unit in 1928 as
oompared to 11017 in 1927.

All of the expense of this unit is distributed to

other functions, on a basis of the percentage of time used by them to the total
productive time of the Stenographic Unit.



91

.

m m

a

maks

will be h a m i the Director* at the tioie this report is offered,
d
,

However, cue

to the fact that youi Controller made an examination of the Branch on ffovember'

office from our viewpoint0
the only Functions showing expansion in comparison with 21927 are
.

credits extended by the Discount Function during the year exceeded the total
of 192?B there were oiuy 25 ',
:a

accossiodated it. '1928 -ospared to 45 is 152?

with the number of notes discounted 458 in 1928 and 10554 in the previous yaar*
Currency operations did not change ouch in 1928 although there were
fewer bills received and counted than in 1927*

Total bills received and count

ed were 2P029 ;
000 for 1928 with 2 218*000 received and counted during 1927,
The total of shipments was also less in 1928 than in 1927,

Present volume of

currency handling is more or iess normal and will remain so unless the Butte
banks cease to draw their currency supply direct from Minneapolis or some

unforseen demand should develop,,

Coin shipments by Selena,,however

creased during 1928 both in number and amounto

have ih

Total 'Cash held on December

31s 1928 was $3,426*000 or $300f000 more than the amount carried at the close
i

of the previous year.
Probably the most appreciated service extended the member banks is
that of affording safekeeping facilities for their securities,,

Since the first

of January, 1928* securities to the amount of $1,500,000 have been 1edged with
the Branch, making a total of $5«511#000 held at the close of the year.,

The

dipping and crediting of coupons from vault securities has increased with
8,224 coupons amounting to $202,852,50 clipped in 1928 compared to 5*736
coupons for $1218982093 clipped in 19370
The -e was a 10 per cent increase in the numbar of cheeks collected
during the year 2,550,463 items amounting to $477,1280000 being handled in
comparison with 2,317*605 items amounting to $428,662,000 handled in 1927<,
Of the number of checks handled, 2U040*132 were on Montana banks, an in­
crease of 211*000 over the previous year.

Check* handled on other Federal

Beserve Districts numbsred 930176, an increase of 11*031*




92

Hoa-caah country collections handled amounted to $6,899, (XX) and
represented 14*992 items.
were handled.,

In the previous year 15*243 items for $S,?43C000

City Collection items averaged about 200 per month and this

number has changed but little in several years.

Hie total amount, of City

Current expenses at Helen* amounted to $94e261y69 or approximately
$2S450o more than in 1927*

The increase for 1928 is not difficult to explains.

Hepair^ and alterations requested by the Controller raised the normal expense
about $2 200.

This additional expense *a» incurred through placing grilles

over all the windows of the Bank and decorating the Interior throughout*
traveling expenses were increased about $470* through some extra trips of the
officers on Head Office authority,

Some office supplies, printing and staionery

which it will not be necessary to order again until 1930, were purchased in
1928, expanding these expenss items more than normally*

Quantity orders of

•ome supplies are necessary on account of frsi^it rates*

Postage expense was

$1,000 more than in 1927 on account of increased transit work and a heavy order
for stamped envelopes,

Thsre has been a reduction of 4 persons in the Helena

staff but this is not noticabla in the salary payments as the reductions came
late in 1923a

The present staff consists of 31 personso

Directors* meetings

have cost $524* less than in 1927 dus to fewer meetings of the Xxacutive Com­
mittee and but one regular ms sting of the Directors during the year.
During the year two examinations of the Branch were made by Bead
Office Controller and at both of these examinations there was nothing but minor
criticisms to offer*
minimum ef expense*

The Branch is efficiently operated and at near the
Allowing for the first of the year salary adjustments, it

IS probable that 1929 totftl of expense will approximate $92,000c

Some extra

expense will be necessary on the building, but it will not exceed $500«
Member bank balances Increased heavily during the last six months
of the year.

On June 20 deposits of $5P756B000 were at the low mark of the

year with a coneietent expansion until
total of $9*023,000 was held*

December 4 upon which date the record

In connection with the increase in dsposits

it is noted that the use of wire transfers has been much more frequent in
1928 than in former years.

The increase in this wire expense ie not apparent

on account of greater reductions made in other wire costs.




.
the income of 192?0

following the instruction* of our Directors, a table is

given below allocating some of our earnings and expenses to the Branch*

The

proportionate amount of Montana member bank reserve balances and Capital Stock
holdings in relati n to our total reserve deposits and Capital Stock, was
•

noted that tye net result gives the Helena Office a credit of $l„425„ for the
year,

If, however? we should charge against the Branch a proportionate

amount of the loss we sustained during 1928 on United States securities sold
by the Investment Committee, there would be a net loss of $5.,050<
,

P O B lQ Of illilAFOLIS
B FO T I
12o64 per cent of aarninge from Acceptances
United States securities^and Federal
Intermediate Credit Bank Debentures
$
From discounts, etc*, at Helena

Current Expenses
$
Proportionate amount of certain other
expense now assumed at Minneapolis,
Montana Closed Bank expenses
Federal Beserve Note Printing costs
Federal Reserve Board Sxpenses
Depreciation on Building and Equipment.
Coa of handling t' S. securities I Acceptances
.
,Dividendt' to Montane Meaber Banks
Equipment purchased i 1928
n




IBCQMI

145,200a00
8a300,00

$ 153,400*00

94,250c00
22.250.00
2,350o00
49300a00
4,000*00
19.825.00

$

1,425,00

»

COMPARATIVE FUNCTIONAL EXPENSE REPORT
HELENA BRANCH

Average
Number
Of
Officers

Gen’I* Overhead-Controllable
loOO
Gen’lo Overhead-Non-Controllab .
e
Provision of Spaoe (less incomei
from banking house)
o
08
Provision of Personnel
>
04
General Service
r,28
Postage
Insurance
Failed Banks
04
Loanso rediscounts and
acceptances
025
Securities
o08
Currsncy and coin
o26
Check Collection
o21
Non-cash Collection
ol6
Accounting
10
Fiscal Agency - All Other
Legal
Auditing
e32
Bank relations
Bank examination
Federal Reserve note issues
Statistical and Analytical
GRAND TOTAL
Total current expense
Total reimbursable expenditures
Stock of supplies
GRAND TOTAL




2 e82

1928
Average
Number
Of
Employees

Amount

Average
Number
Of
Officers

#8p579o91

1927
Average
Number
Of
Employees

loOO

#8o950n20
6c591o37

*

2o06
olB

9o87
oOZ

o36
o47
2o75
8o38
le70
3*84
c10
o35

80962o82
788o44
13e837o81
40479oOf
30496o28
320068

20266ol4
l0666o63
70106o47
14^105e14
30558028
14p367c37
201028
"q 800 oOO
L
30139o56
101085
301u50

«08
^05
o30

2o
00

o04

jO4

©25
o09
o26
o22
©17
ao

©82
o56
3o02
9ol7
lo79
4 .20
o07

o34

V
20

89o27
30o08 * 94,142o85

2.90

Amount

o08
8 >8
2

60679©69
733084
12,0916039
3^486
30196o48
367o28
30418046
1^601o04
7o102o34
14p546o63
O,600 088
r
14p974o70
120 oOO
1.800o00
2P751042
23o70
346 o60
137„07

30^23 |92n323o28

94 261069

91„808olO

> n . isV

816.18

"54~H07

T I T S O F

95


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