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CONTROLLER'S REPORT
FEDERAL R E S ERVE BANK OF MINNEAPOLIS
F OR THE I .EAR
f
1 9 3 3.
*
To the Directors?During the past year much has happened to affect
our e a r n i n g s 2 e x p e n s e s 9 surplus, and most functions of the
banko
'Ve believe the year 1934 is certain to produce even
greater activity in our Fiscal operations as well as further
services performed for present and new member b a n k s .
With a greater income for 1933 than in the previous
y e a r , we were unable to make any additions to surplus because
of a 20 per cent increase in expenses and the n e c e s s i t y of
Xjroviding n e a r l y *300,000 for depreciation in our bond h o l d i n g s 0
B eca u s e of a ohange in the Law we are not now required to make
Franchise tax p a y m e n t s c
However, the Banking Act of 1933 re
quires us to pay one-half of our surplus as of J a n u a r y 1, 1933
to the federal Deposit Insurance C o r p o r a t i o n 0
Our portion of
this payment was withdrawn from surplus on January 5 and 50^
o f this amount or $ l , 7 5 4 c733<,82 paid b y check on the same d a t e 0
The remainder is to be paid on April 15*
D uring the months of February and inarch we had heavy
cash withdrawals followed by the bank i n g holidayo
The calling
of a part of the Liberty Loan issues and heavy increase in
Government w a r r a n t b s required many additional e m p l o y e e s 0
All
functions have b e e n efficiently conducted and the audits of
the year disclose no irregular!ties*
Statements showing our condition and the operating
r esults for the y e a r ? are attached for your information,
Re s p ectfully submitted^
J a n u a r y 1 & 1934,
A u d i t i n g a .......................... ............................73
Bank Examination Department ................ . .............. .74-80
Bank Premises
M inneapolis bu i l d i n g ................................... ..40
H e l ena b u i l d i n g ..................... ..................... 41
Costs, charge-offs, reserves and book value * < .......42
>
Comments „ . , . . ............................................ .43-48
C a f e t e r i a e * ................................................. . 33
Check Collections - Transit Department .................. .51-57
C l o s e d Banks . . . . . ......... ............... ................. .49-50
Collateral ............................. .......................59
C ol l e c t i o n s * N o n - C a s h .......................................58
C u r r e n c y and Coin
Comments ................................................ ...60
Number and amount of shipments received and sent 000 61-82
C u stodies ................................. .................... .59
Deficient Reserve Penalties ..... .......................... .71
D i s c o u n ts
Comments .................... ............................. .47
R ates ...................................................... .16
Statement of operations ..................................48
Divi d e n ds paid since organization * * ..................... .7
Earnings
Comparative statement 1933-1931 « ..................... .15
Gross earnings and monthly averages * ..................13
A ver age rates on earning assets * ..................... .16
Comments ................................................... 17-21
E xpenses
C o m p arative statement 1933-1931 .............*....... . . 23
C o m p ar ative statement of Miscellaneous Expenses
24
C omm ents ........................................ .......... .25-37
Co m p arative Statement b y Functions-Minneapolis • ••,. 38
C o m p arative Statement b y Functions-Helena.,.......... ..SO
R e i m bursable Expenditures ............ .......... ...... .85
Failed Banks ........ .............................. ......... ..49-50
Federal Reserve A g e n t 1s Functions
Bank Examinations ........ ....................... ........74-80
Federal Reserve Ilotes
C omment s » * ................................................ .63-85
Statistics ............................. * ...................66-68
Fiscal Agency Functions ........... ........................ .81-85
Franchise Tax paid since o r g anization ................... .7
Functional reports
Comparative cost of various f u n c t i o n s - M i n n e a p o l i s . ». 38
Comparative cost of various f u n c t i o n s - H e l e n a . ....... .90
Furniture and Equipment
• .................. .38
I | D S X
(Contd)
G o l d Holdings
Amount held b y bank and F. R. Agent « ...... ......... ,.. 70
He lena Branch
Comments ............................................... ...... 86-88
C o m parative functional expense report 1933-1933*...... 90
Bank Premises . . . . ....... .................................. .41-46
Report of Transit Department <>........................... .89
I n v e s t m e n t s ....... .................................. ........... 21-23
Leased Wire ................................. ................. ... 72
Liabilities^ Comparative Statement 1933-1932 ............. . 2
M emb e r Banks
R e s erve Balances .......... .......... ........... ........ ...71
Changes i n membership .................................. .... 77-80
N o n ~ C a s h Collections ............................................58
Profit and Loss
Statement in detail for year 1933 ...................... ..3
Summa ry report for year 1933 .. . . . ........ .............. .4-5
Account since organization ................................ .8
Dividends, surplus and franchise tax .....................7-8
Comments 0 o ............... ........................... ........9-14
R e c o n s t r u c t i o n Finance Corporation * . . . . ......... ......... .33-85
Reimbursable Expenditures .. . . . ........ .................... ..85
R e s e r v e Position . * ...................................... ...... 89-70
Resources, Comparative Statement 1 9 3 2 - 1 9 3 2 . .............. ..1
Securities
C u s todies CJnit » . ......... ................................. .59
Investments he l d * ........................ ................. .21-22
S urplus
Detail statement since organization ..................... .8
Taxes ................ ............ ................................46
T e legraph .......................................... ........... .
Transfer of funds
Comments ............... ................ ......... .......... * 72
Transit Functions
C o m ments .................................. *. •........ ........51«53
Statistics . .......... ..............<................ ........ 54-57
COMPARATIVE STATEMENT OF RESOURCES
FEDERAL RESERVE 'BAWi OF KIHNEAPOLIS AND HE1EKA BRAJFCH.
DECEMBER 31, 1953
Gold
Gold
Gold
Gold
with F. R. Agent......... ................. § 76,254,000.00
Redemption Fund P. R. Notes**............. »
1*612,357*76
Settlement Fund....... *..*.... ............
19,517,798.41
and Gold Certificates....... 543,960*45
DECEMBER SI, 1952
$ 41,540.000*00
2,213,507.13
7,797,422,76
2,340,163.92
Total Gold Reserves*...... ............
97,934,116*62
53,891,093.81
Other Cash..... ................................
8,321,586*79
7,250,218.45
Total Gold Reserves and Other Cash....*
106,255,703.41
61,141,312.26
Redemption Pond F . R. Bank Notes............
Bills and Securities:
Bills Discounted Sec. by U. S. Securities......
Other Bills Discounted............ *.*.»*•**•.•
Bills Bought in Open Market.......... ........
U. S. Government Securities....................
Other Securities........*.......#.... .........
593,250,00
49,450.00
1,822,559.44
3,189,208.96
65,668,505.68
79,963.19
325,260.44
9,278,555.19
611,649.63
54,850,654*20
410,563.94-
Total Bills and Securities..... *..... *
70,809,692*2?
65,476,683.40
Due from Foreign Banks.**•*•*•«•.**•*•••*•*»»*•••
F. R* Notes, of other Federal Reserve Banks.......
Uncollected Itemst
Transit Items..... .........«*...*•*..**.......
Exchanges for Clearing House..*...... ***••••••
Other Cash Items. *•»«*«*
•*•«••••••......
9S418*36
657,500.00
9,800,860.92
347,479*26
492,902.94
10,108,367.98
221,645.46
487,920.26
Total Uncollected Items................
10,641,243.12
10,817,933.70
Bank Promises..«........ .
Premium on Securities.............«•••••*..••••
Interest A
c
c
r
u
e
d
.
.
Reimbursable Expenditures......................
Deferred Charges.*..... •••*••••••*••••••«•••••
Claims Recoverable.**....*.*........... *......
All other Resources*.***...**•••...•«.... .
1,747,677.60
12,925*65
.
60,686*19
21,886.23
129573*49
1,338,996.02
27,336*14.
1,835,882*58
15,183*57
60,787*54
10,770.85
18,960*89
1,590,989*31
26,433.27
Total Miscellaneous Assets.............
1,474,403.72
1,723,125*43
TOTAL RESOURCES...... .......1X92,188,888*48
None
10,558.23
716,500.00
$141,721,995.60
1
COMPARATIVE STAOTBHT OP LIABILITIES
FEDERAL RESERVE BANK OF MUWEAPOLIS AND HELENA B M N C H .
DECEMBER 31, 1932 ♦DECEMBER 31, 1932
F. R. Notes in actual Circulation..*........... .
F. R. Bank Notes in actual Circulation.*..».•*.*
U. S. Treasurer-General Account.*#***•*«•*..••••
Jfember Bank-Reserve Accounts ,8pl.Trust Accts ♦. ..
Due to Foreign Banks*.............. **.*«•••••.*•
Officers1 Chocks, P. R* Drafts, Other Deposits.*
$ 92,895,885*00
7,718,250-00
90,953*17
64,330,674.53
95,758*95
1,777,959*15
$ 80*966,415.00
None
580,768*45
37,780,538*40
460,726*07
328,039*57
Total Deposits....*....................
66,295,343.80
38,950,072.49
All other Transit Items........................
699,242*10
10,428,690*53
224,850*72
10,513,011*03
Total Deferred Availability Items....
11,127,932*65
10,737,861.75
66,253*98
11,175.50
3,444.00
6,504*07
10,494*93
3,134,099.12
64,190*40
7,289.49
S,444.00
7,677.79
60,747*14
48,779*26
Deferred Availability Items s
Cover maent Transit Items.... .............. . *
^miscellaneous Liabilities,♦ •
Accrued Taxes other than Franchise Tax*.......
Reserved for Sundry Expenses.*....•***•*......
Depreciation Re serve U. S. Securities••..•••**
Discount on Securities..***«..**•............
TJnearned Discount................. *..........
All Other Liabilities...................... .
Total Miscellaneous Liabilities..... .
3,231,971*60
192,128.08
Capital Stock Paid In........... ..............
Surplus Fund*•*«.«•••..«•»••••*••«•*••••««•••...
Reserve for Self I
n
s
u
r
a
n
c
Special Reserve................................
Earnings, Expenses and Dividends*
Discount Earned.................. *..........
Interest Earned.................. ......... .
Penalties on Deficient Reserve........ *.....
Miscellaneous Earnings. *.*.**.......... ...**.
2 , 876,450.00
7,018,935*30
e
515,379*97
272,989*28
259,336*44
1,179,975*18
8,016*57
50,340*99
483,866.01
921,077*03
17,219.16
12,930*80
Total Gross Earnings....... .....****•
1,497,669*18
1,435,093*08
Expense Current........«***••••«••*•**••*••*..
Furniture and Equipment..... ...... .
Dividends Accrued*•*».«*.•««.*...•**•**«......
1,114,093*70
19,548.00
171,568.89
926,666*26
11,986*00
175,494*80
Total Charges to Current Earnings.... *
1,305,210*59
Current Hot Earnings.....*...........*
192,458.59
Profit and Loss********.***.*.*.***.*.*..****•*.
43,292*31
Het Earnings Available for Depreciation
Allowances, Surplus (& Franchise Tax 1932)
235,750.90
TOTAL LIABILITIES.... ....... $192,188,888*48
2,885,500*00
7,009,251*02
500*000.00
78,247.16
1,114.149.06
320,944.02
81,776.08
402,720.10
$141,721,995*60
2
immsa, zumEVE b a m o f h i m sAPCMs
S T j w m m f of p m n i'T m loss accomt ~k>r issg
Discount ©arzi€Ki on bills discounted - Minneapolis „ . , . , $
Discount earned on bill a discounted « Helena Branch . • » «
Discount earned on bills purchased........ * 0 . , c e „
Interest earned on T , s* Government securities . . • • « o
J
Interest earned oh Municipal Warrants . « • . 0 « o • * • *
,
Deficient raoorve penalties - Minneapolis • . .-a . • • • .
Deficient reserve penalties « Helena „ * . « . e . * • . .
Participation in transactions with foreign banks 0 . . « »
Interest earned on past due paper of eloeed banks
„ „ ee
© of waste p^per o o o o e e o o 9 o « * o o o o o o o o
i
Service charges on collection items returned - Minneapolis
Clearing House fines
Income from Banking House 0 « < • e « . B a « » « . • . • «
>
Expense - Cost of Federal Reserve Currency „ * e , • . , » 90,397*44
Other current expense - Minneapolis a . » * a < • . . . . « 938., 336* 86
>
Expense current - Helena Branch
e . » 859359o40
Furniture and Equipment
„ , P . e « * » . a • . . c . . a 19?547o00
Reserve for depreciation on building* Minneapolis „ 0 « • 25e665063
Reserve for depreciation on building - Helena Branch 0 * «
2»700oG0
Reserve for depreciation on fixed machinery end equipment Minneapolis * « . * . 6 . • « « • • » a • . • • , • ♦ S2E005*35
General difference - Minneapolis 0 » 0 » « °« , » » P « »
Tellers'5 differences - Minneapolis * * 0 a 0 » . . . . « «
177*23
Transit and clearing differences - Minneapolis 0 * * * < «
>
144,-66
Tell era1 differences - Helena Branch
Transit differences - Helena Branch 0 * „ 0 „ 0 „ , . . < e
,
Recovery of expense in connection with closed banks c * » «
Recovery of transit items previously charged off „ „ , » c
Adjustment of earnings during the year 1932 „ » » * « * » <
.
Proceeds of coin accumulated by Helena Branch and held as
worthless which was redeemed by the Treasury Depart*
ment at bullion value 0 e » » » e < „ „ . a « * . a «
=
.
Profit from sale of Uf & 9 securities from Temporary Investl
ment Account
a • • « . • « 0 • • • • • * .......... ..
To reverse entry of Feb0 10t 1932 by charge to Reserve for
losses on account of advance made to John Milligan
debtor of First National Bankc Marion^ H, D, . o » * •
Our pro rata share of exchange profit in connection with
payment of interest on Austrian credit
* » « « s »0
Our pro rata share of exchange profit in connection with
payment of interest on Bulgarian credit » « 6 * « • e
,
Profit on sale of Ua S, securities through F» Ro System
Special Investment accourit • . e . ................ ..
$ 200, 315c75
211424.74
371595.,95
l*l?95975ol8
2 t226,60
6f9 36c 90
1, 079,67
11,96
40. 150,65
135,59
188057
29*00
7, 6580 62
13o 27
18,74
15c 47
9 e9870 60
92.83
4c 71
26,55
5,64
495,85
8, 362o87
982,53
26f302o09
Loss incurred in connection with sale of Federal Land Bank
bonds for account of Receiver of U6 Sc National Bank,
Deer Lodge^ Mont<* o o o B c » o o o e o o o o o » « o
10c 00
Counterfeits5 and discount on foreign currency » . , » . »
lf686c,ll
Abrasion on goxd coin o o o o o o o o o o e « o o < < » c c
.
> >
1^251a2o
Loss on transit items « 0 0 0 e • • « . • « . . < • « < . «
,
.
11»00
Loss incurred in connection with sale of ! * S0 securities
?
for account of a Member Bank „ 0 0 « o » o < « « « . »
>
10,00
Reserve for depreciation on V0 3, Government securities?
Held in F0 Ro System account o o a p e o < 9 e s « e o < > 107t393o61
Held in our own Portfolio
92P359042
Reserve for losses on past due acceptances in process of
collection - Foreign account • . o a . . * « o » • ' • • •
338012
Reserve for losses on Investments through. Foreign Banks • » 34c500!00
?
Dividends accrued . „ . « . 0 « .
• . • > • « . • o • 9 0 1719568089
Deduction from Surplus - (net loss for 1933), • . . - . • «
$16633p460o96
891483c 63
$le633, 460 96~
3
KsssRvis bm & of M n a m poLig
SUMMARY Off
m o m * . m loss s m s m t
w m X933.
H^ad Office
S2UL
Earnings
o
Currant
Expenses
o
o
o
o
c
o
O
o
0
e
o
$ Xf-49?, 669 o18
o
Current not earnings
C
©
©
1,1X4,093.70
•
o
<
*
$ 1,475* 164077
lt02897r54e30
o
Branch
$ 32s504o4l
859359.40
^44^430747” ^ 65^854,-99
^
Additions to current
net earnings?
Withdrawn from reserve .for
probable losses . * „ » • • .
Profit on United States Govern
ment securities sold « Net «
,
111 other (Schedule HAW) 0 . »
o
Deductions from current
net earnings*
Furniture end equipment •
Re servo for probable 1oases
Reserve for self-insurance
All other (schedule rB M) o e
t
o
Dividends paid
$
(
5
o
o
t o
&
$
c
836c 39
2f416o 37
347.760.89 ”1
341.240=08
* 6,510,81
301*490,22
82,085,26
295.005,96
151, 484* 51
S 6 .4 8 4 .2 6
9 33 a ! ^
&
$
89«483063
o
3
82„085o26
See following page for detail of Schedules MAM and ” M
B
26,55
$ 2,700,00
1P394S44
$ 171*568,89
o
$
87, 670;98
,
18,152.56
234,590.15
38£42c76
©
0 . . • .
transferred fro® Surplus
90,370,98
IS 9 547o00
334p690ol5
2 6 a55
-
j
Total deductions „ . e
Net deductions from current
net earnings , * • 0 o . o
.
Net earnings c » . . ©
46e260,67
05
c
$
$
o
s£
J
<*
4
o
26,307o73
19*926*39
<&
Total additions .
26,307c73
19,952=94
m g j ^ . s a a ^ yB B^nc
PROFIT
Schedule tAr t t
" h \ l
of
mmMXQhis
LOSS STATEMJgg FOE 1933c
j r n
other** additions to current net earnings'5
Total
Becovery of expense In
connection with closed bank®
Head Office
$ 9 P987o60
$ 9 r98?060
4C71
4071
4S5085
495n85
Our pro rata sOi&re of exchange
profit in connection with
payment of interest on
Austrian credit
8r36.3c 8?
8?363087
Our pro rata share of exchange
profit in connection with
payment of interest on
Hungarian credit
983c 53
982* 53
9SC83
92n@3
26„ 55
$ 13,952.94
$ 19 j926039
Branch
Adjustment of earnings
during 1932
To reverse entry of February 10
.1933 by charge to Reserve for
losses on account of advance to
John Milligan debtor of First
ft&tion&X 3&nkf Marion,, I, D0
Recovery of transit items
previously charged off
Proceeds of coin accumulated
fey Helena Breach and held as
worthies* which was redeemed
by the Treasury Department at
bullion value
$
-
36o65
$ 26c 55
Schedule »B« ~"AL1 other** Deductions from Current Net Earnings
Total
Loss incurred in connection
with -sale of Federal Land
Bank bonds for account of
Receiver of U- a, National
Bank Deer Lodge. Mont*
Lose incurred in connection
with sale of T t S, securities
Jt
for account of a member hank
$
i
IGcOO
Head Office
$
10*00
Branch
$
-
o
lOoOO
10„00
Counterfeits and discount on
foreign currency
1,685,11
433039
1,197c72
Abrasion on gold coin
ls25Xe35
* lo 61
19252c. 86
Lose on Transit items
lloOO
llaOO
374o40
$ 30242« 76
303o61
826o 39
Difference accounts
• Credit.
$
* 34o 21
$ 2C416c 37
r a m L J5ESERYE B A M OF MITOAPOLIS A3BD USSLSSA BRAHCH
ST A T M K T
O F
RABHINQS« BXPEKSISS AND DISPOSITION OF EABKIH&8
SINCE OBGANlZATICgg
December 31, 1938c
* o o c o c o o 6 8 e o o » o o o e < ^ 34^. 8? 3t>5
JjC}SC l t © S c o o c 9 0 o o c c o o r ? o e o c
IJV
16^031{.10C
Net earnings before charge-offs e „ e , s 0
Additions to not earnings 0 • * 0 » e • . 0
Deductions from net earnings8
Furniture and equipment 0 o c . „
Bank premises depreciation 0 « * •
Reserve for self-insurance 0 « « <
,
Reserve for possible losses (let)
All other © « « c * °o » « » • «
»
»
»
o
»
. .e
» ..
» •«
.0 *
• ••
« $
*
*
.
•
»
Het earnings 0 0 » e « o • » °. • • e *» •
Distribution of net earnings?
IDividsncls pfiiK? o o o o o c o o o o o o e
Transferred to surplus (Set) • « « „ c •
Franchise tax paid to U, S5 Government •
$ XBr846, ?30
„
?50,666
$ 19,997,396
54OP099
Sr068e596
515,380
690t
,0S4
£10t579
$ 4,019k188
$ IS.578.206
$
3P445,8 5 t
6„ 929,452
5„ 202c399
$ 151578,208
6
BIVIDEHDS S A W SIHOB QBSAHIgA-TIQB - BY YaffiS
19X6
191?
1918
1919
1930
1921
1922
1933
1924
1935
1936
1937
1928
19 £9
1930
1931
1933
1933
$
CO
«
«
c=a
»
C5
•
CO
<n
*
5?*?19c8?
363-894o19
168r102c9?
180,186c 21
19 5e870065
211 o657c 03
213.774c 01
212,732c 68
202,827*93
19 3 j509c46
,
187,609c25
1800?36o51
181,202*86
184t029o92
184,445039
180r454o53
l?5f494o80
171r568c89
§3,445r857„80
STAgEMBHT 0? TOTAL liBASCHISS TAX PAIS SIKCE OBOASIZAJIOS
December
December
J'ane 20f
December
December
December
December
December
December
December
December
December
December
December
December
December
$
37,500c00
31 g 1918 Transferred from Profit- and Loss
1
8
1
4
i
i
31 , 1920
524,233,58
M
i
t
»
1921
1,284,497*62
n
i
i
M
1,166, 468-98
31, 1921
i
t
on account of underpayment
31, 1922
52,423o3S
years 1920 and 1921
i
t
612*028,98
31, 1922
from Profit and Loss
i
t
(
i
n
101P450c 25
31, 1923
H
i
i
s
i
113 646o 58
31* 1924
I
S
i
i
t
i
37 (255004
J
31, 1925
K
(
»
i
i
1926
234,380.91
a.
H
»
h
103,815,90
31 e 1927
t
J
t
i
n
390,150o58
1928
31P
<
i
I
I
n
549,658058
31, 1929
t
l
n
i
t
8e229,60
319 1930
t
i
(
1
»
Hone
31, 1931
i
i
I
I
n
87,158.54
31 r 1932
P33EAIL B W W m H OF glBFLUS AflCQtMT SINCE QBGAHIZmOH
January 4S 1918 Tr&naferred, to Surplus from Profit and Loss
ti
i
f
M
tt
31, 1918
1919
from Reserve for franchise Tax
f!
1919
to Surplus from Profit and Lose
t
i
(i
it
it
31* 1919
i
i
i
f
i
t
1930
it
t
t
f
i
»
31, 19 BO
it
ti
II
19 21
t
t
It
si
»
31, IS SI
i
t
5
1
i
t
31 * 1922
f
t
i
f
»
31 c 19 S3
i
f
i
t
a
319 1924
i
i
n
t
i
w
31 o 1925
December
March 4 0
June 30e
December
June 30 f
December
June 30 9
December
December
'December
December
December
December
December
December
December
December
December
December
December
h
ii
ii
ii
ii
31, 1926
319 1927
31, 1928
31» 1929
310 1930
310 1931
31P 1932
3le 1932
ii
n
ii
»
ii
if
ii
«
fi
fi
t!
it
it
i
t
n
«
It
n
u
ti
i
t
ii
ii
tl
M
if
ii
II
II
to Surplus from Heserve for de
preciation on Un Sc Securities
$
3?,. 500000
6 8 8 , 8 7 1 c 6 2
6 8 8 s 8 7 1 c 8 2
9 0 4 r 3 5 ? o 4 0
l
t 2 4 9 , 3 9 9 o 0 4
1 8 6 0 9 9 2 4 1
o5 5
1 e 801?706o 54
3S3p1S1o95
165s407c67
5 6 , 892o
10
l l , 2 7 2 o £ 5
12,627,39
4 , 139o4 5
36,042c 3&
lle535,10
43,350*06
6!f0?3ol8
914; 40
Ion©
9,684,38
6 5 3 , 0 0 0 ,8 5
$ 8,3B9#009318
Leas*
December 319 1923 Additional franchise tax
paid for the years 1920 and 1921 „ « , 0
December 31 s 192? Withdrawn from Surplus
to reduce book value of building « 0 » o
December 31 f 1931 Transferred from Surplus
for depreciation on U , Sc Securities 0 »
r
December 31s 1931 Transferred from Surplus
net loss T or 1931 o ? o » » c e o © o «
December 31 f 1933 transferred from Surplus
.
net loss for 1933 o o c o o o o o o a c
Balance in surplus account January 1P 1934
•
$58,433,36
5OO0OOOcOO
653,000.85
134,649 e67
89.483o63
1.433,567,51
$ 6,929,451.6?
(
PROFIT AND LOSS
Our total income for 1933 amounted to -.1*543,929*85
or '^24,000 more than we obtained from all sources in 1933*
This
income was more than sufficient to care for all our normal re
quirements even allowing for the increase of #187,000 in our
current expenses, but was not sufficient to provide reserves
for possible losses and the normal building depreciation al
lowances*
The particulars of our earnings are shown elsewhere
in the report t the information on the immediately following pages
.
be i n g confined to the credits and debits made direct to Profit
an d Loss and the d i s posi tion of our income*
The direct cause of our greater income in 1933 not
being sufficient for all purposes, was the rapid expansion in our
opera t ing costs b y reason of the bank i n g crisis requiring the
a b s o r p tion of m u c h direct and indirect expense for Fiscal opera
tions and one of the heaviest printing schedules for notes we
have yet had*
The various expense items with particulars and
comparisons are covered under the appropriate headings.
At the close of 1932 we were able to return to Surplus
all of the * 6 5 3 , 0 0 0 o85 set up as a depreciation reserve for United
States securities at the end of the previous y e a r 0
However, there
are m a n y more Governments outstanding at the present time and the
b i g increase in longer time maturities h e l d in the Special In
vestment Account may work against a rapid return to par of many
issues0
The drop in market value of our Government holdings
came in the closing months of the year as our calculations in
S eptember showed a substantial increase in market over purchase
priceSo
On the tasis of 1933 expenditures, we w o u l d be required
to earn r117,000 monthly during 1934 to cover operating costs and
the normal depreciation allowed on bank premises <
,
.Ve should show a
saving over 1933 of at least ^70*000 in note p r i nting costs and
some decrease in a number of other items but the addition of state
banks to our m e m b ership and the evident intention of the Treasury
,
9
PK0F1T AND LOSS
(Contd)
Department to reimburse us for as little as possible, makes it
apparent that 1934 expense will be higher than lor any previous
/ear w i t h the possible exception of 1921c
Items credited direct to Proiit and Loss because of
their c h a r a c t e r s are shown in the preceding statement
and Loss*
Profit
Some of these items are more fully described herein
^hen deemed necessary.
recoveries of amounts expended at closed bank amounted
to &9,967oSOo
This refers only to recoveries of expense incurred
prior to 1933»
Recoveries of expense created during the current
year are credited direct to expenseo
In connection with Foreign
credits ^e received an additional profit besides the normal interes
participation*
These creditf? were repaid in french francs and a
p r e m i u m w ae obtained in cinverting the francs into dollars *
In
this way we were credited |8,362„87 as profit on Austrian credit
and ^982o53 on Hungarian credit.
On the various sales of se
curities h e l d in Special Investment Account in New ¥ o r k ? a net
profit was made and our share of this profit for 1933 was
i?26,3 0 2 o09 credited to us by Hew york at the close of the year.
Direct charges made to Profit and Loss during- the year
amountea to 42,966o33o
In May the Branch was instructed to dis
pose of $9, 2 0 0 in Canadian currency which had been held for a num
b e r of months-.
No record was available covering particulars from
w h o m received so that the discount loss of ^l,162o22 was absorbed
by
the ban.£o
At
head office we charged off #488,39 representing
counterfeits, and a small amount of discount on currency-.
The
counterfeits were nearly all #10 gold certificates passed by the
inexperienced tellers we ™ere forced to use during and after the
ba n k i n g holiday*
In order to reduce the sunply of cash at Helena
we obtained oermission of the Treasury Deoartment to shio to the
lint $500,000 in gold coin most of ^hich ^as taken in last March
an& Aoril*
The abrasion on this coin amounted to -ll,251 =25 which
tye w e re reouepted to aspumeo
In the Profit and Loss items of 3.932
^as a charge of $495*85 covering a loss on a direct loan made to
a closed bank debtor named John killigan at Marion, n. Do
fix-
PROFIT AND LOSS
(Contd)
so we have credited this amount to Profit and Loss and charged
R e s e r v e for bosses on Discounted paper.
After all current earnings had been transferred to
Profit and Loss on December 3 1 9 the following charges were
provided for.9
CURR5NT iSXPKHSiCS
Minneapolis .ei,028,?34„30
Helena
8i> ,359,40
§ 1,114,093=70
O p e r ating costs of the past year were heavier than for
any other year since 1 9 2 1 *
Due to ‘ fact that all note print
vhe
ing costs are borne b y Head Office and most Fiscal services are
p e r f o r m ed here* the increase at Minneapolis over 1 9 3 2 was
■ 8 1 #5 1 9 c 3 5 wi t h the Helena expense this year *v5,9 0 6 * 0 9 in excess
1
of 1 9 3 2 costs*
The banking crisis upset all budget figures with
the result that Minneapolis exceeded the 1 9 3 3 budget by
and H e l ena exceeded Branc h estimates by ')?*100o
148,700
It is quite
likely our actual disbursements in 1 9 3 4 will exceed the total
for 1 9 3 3 b y * 1 0 0 f0 00 «
Under the expense classification the
changes in our costs will be explained*
FURNITURE AND EQUIPMENT
Minneapolis
*18/152* 56
Helena
1,394,44
5
19,547.00
Although we had expected our purchases of machinery
and equipment to be less than normal in 1933, the rapid ex
pa n s i o n in a number of functions required added e q u i p m e n t a
p urchases may be charged off at the close of each year*
All
Under
Furniture and Equipment purchases of 1S33 are classified with
amount expended on each type of article,,
Further addins: machines
will be required in 1934 but the total expe n s e should be l o w e r „
RESERVE FOR D EPRECIATION
O H B A M B U I L D I M G ____
.Minneapolis
? 3 5 98 S 5 063
Hele n a
3 » 7 Q 0 oQQ
1 28,365.63
5
There is no change in the amounts set aside for de
p r e ciation on our properties at Minneapolis and Helena*
The
various amounts b y which the Building Account has b e e n reduced
and t he'particulars covering amounts reserved each year since we
PROFIT A M D LOSS
(Oontd )
o wned property are adequately explained under Provision of
Space in this report*
We have been making' chargee to earnings
for nine years in accumulating the reserve of $230,990o87 on
Mi n n eapolis building and fourteen years in setting aside
$89,418,74 for depreciation on Hel e n a b u i l d i n g »
All oroperty
accounts and d e p reciation reserves are carried on books at
Head O f f i c e »
RESERVE FOR D E P R E C IATION OH
FIXED u K o i i m m f AND liQUIPMEHT
Minneapolis
Hele n a
$83,005,35
0 ___
$
83,0050 35
Reserves equal to full amount of original cost had been
p r o v i d ed for H e l e n a at the close of 1931 and the full requirement
at M i n neapolis will be reached on December 31, 1934 „
The elevator
m a i n tenance contract requiring $2,166 yearly is the only charge
n o w b e i n g made against the reserve at Minneaoolis*
During 1934
we anticipate no further charge except for the replacement of
a w ater heater costing less than $500.
Reserves approved each
year by the Federal Reserve Board have been at the rate of 10
oer c e nt of original cost*
R ESERVE FOR DEPRECIATION ON
UNI T E D STATES SECURITIES
For securities held in System Account
$107,392*61
For securities h e l d in Permanent Account 93,359*43 $199,753.03
Under instructions from the Federal Reserve Board we
set aside the sum of $107,393.61 representing the difference be
tween market and purchase price of Governments held in Special
A cco u n t which have maturities b e y o n d 1934»
The market prices
were furnished all Federal reserve banks by New York on December
39o
The reserve set up for depreciation in our own Permanent
Account and Self-Insurance Fund was b a s e d on market prices
supplied by the Board on December 30*
The depreciation covers
maturities after 1934 with allowance made for the amount of
p r e mium we will amortize during the present year.
PROFIT AND LOSS
(Contd)
R ESERVE FOR LOSSES IK CONNECTION VTITH
DEALINGS THROUGH OR FOR"FOREIGN BANKS
Re ser v e d for lose on Acceptances
Reserved for loss on foreign Credits
$
338^12
34,500,-00
The first item is estimated sufficient to cover the
small loss on bills bought for Foreign banks and taken back
into System holdings under repurchase agreement,,
The second
amount reserved is the estimate of the New ¥ork Federal R e
serve Bank, approved by the Federal Reserve Board, covering
expected losses in investments made through Foreign banks.
All reserves for losses are combined in the reports n o w furnished
and in our case aggregate #511,033..43*
DIFFERENCE ACCOUNTS
Minneapolis debit
Helena
credit
$ 308.61
34-.21 Debit
$ 274*40
This net charge represents a loss on all the cash,
coupon and check transactions handled during the year*
There
are many small differences especially in the transit work b e
cause many large banks make no attempt to prove out differences
under {1.00.
At Minneapolis the net charge for transit depart
ment differences was $144 Q66.
showed a net credit of $15*47,
At Helena the transit differences
Tellers' differences which could
not be allocated to member banks resulted in a net debit of
$177.32 at Minneapolis and a credit of $18.74 at the branch a
This showing is quite satisfactory, volume considered, and b e
low the amount normally expected,
DIVIDENDS PAID
$ 171,568,89
Making allowance for banks closing or withdrawing
from membership and the recent State bank additions to our
membership, the net change in Capital stock holdings since
December 31, 1S33, h a s been a reduction of $8>850*
oaid in dividends during 1533
less than for any other year since
1918 and is $3,925,91 less than the 1932 payment*
The amount
Total dividends
13
PHOFIT AMP LOSS
paid since organization $3,445,857.30.
(Contd)
On December 31, 1933
our membership consisted of 491 National banks and 60 State
bankac
One year
b%
o we h a d 514 National members and 42 State
b ank m e m b e r s .
DEDUCTIONS FROM SURPLUS
$ 89,483,63
After paying all expenses, setting aside the reserves
a u t horized and pay i n g the annual dividend, it was necessary
to reduce our Surplus Account the above a m o u n t •
All funds with
drawn from earnings and surplus to cover possible losses, are
retained on our books and the total of Capital, Surplus and
R eserve Accounts on December 31 was $10,832,305*07 compared to
$10,701,308*43 one year ago.>
It should be noted that under the Law one-half of our
Surplus as of January 1, 1933 is to be paid to the Federal Deposit
Insurance C o r p o r a t i o n 0
at the close of 1933.
We had assumed this payment would be made
However, the Federal Reserve Board advised
that our Surplus should not. be reduced until this payment i/as
calledo
Consequently, we axe shoving
1509,467o615* In cur Surplus
Account w h i c h may be w i t h d r a w n at any tlz&e.
*0ur subscription was set aside on January 5, 1934 and
we forwarded our c a s h i e r ,s check for one-half of this amount to
J
the Federal Deposit Insurance Corporation, the remainder held
subject to callo
m
i
O M H fllV STATMSHT OF GROSS 3ABBXHQS
O PA A Tg
J W m A L KBSffiRTB BASS! O MIMEAPOIIS AID WSUEBSL BH .BCH
ff
A
Minnefiuolis
_
_
— ___
TgAHNlNaS FRO
M
__ _ _ ___
1<TH
Discounted bills . » . « * . . e » • . . « .
.
Purchased bills . . . . . . . . . . . . . . . . . . . .
United Sts tea securities « • . ........................
Federal Intermediate Credit Bank debentures e . o c » »
Municipal Warrants .................................. ..
Foreign, ioaas on gold • « . . « . . • . . < . • . . . e
,
D e fie ie a t reserv e p e n a ltie s
. . * . . ................................. ....
Interest received on past due paper of closed banks
Participation la transactions with fGreiga banks • „
Sale of waste paperf money bags. etcc
Service charges on collection iterns returned unpaid
Clearing house fines
<,0 0 0 0 0 . o e « o o o c C
Income from banking h e m s „ „ . • . o c . . . . „ „
Total famines
. . . . . . . . . . . . . .
e c
* c
c e
O c
. „
Helena Branch
_____ i s a i _
Combined
1931
37*595*95
ls179*975* 18
$ 221t?U0.U9
37.595c95
1.179.975.1*
2*226*60
2,226,60
$ 200,315*75
6r 936* 9Q
U0,l*)0e65
11c96
135*59
128*57
2 % 00
7 1658c62
¥1^75^165777"
* 2iM^7U
Combined
1912
$ U 18,530c 72
65*335*29
92l;077„0?
)
I,910o71
5 f326006
Gembined
-.. . W 1
1 ,079=67
Sf0l6c57
Uo,150o65
lie 96
135*59
126.57
29.00
7*658062
17 ,219c16
H,i U6o70
lr329ol3
70c 1?
135*11
13.00
$ I6gt
.5«9c07
132.99S.95
597.518-CW
U0
I22ol5
3eU230
U6
111.63
7,725c?6
1M9&79
• 7r5i?*69
72ol9
109J +2
2U0OO
$ 2 2 a50 U„Ul
$ l»%7f
,6?9as
$ l ri»35,093,'0g
$ 936»6$ia9
AVERAGE RATS OF 15ARNIBGS OK JEABNIKG ASSETS
FSDBHAL HISSBRVE BAUK OF MINNEAPOLIS AM) H E L M A BRANCH
1932
1933
Monthly
Average
1932
Monthly
Average
1933
Earnings from?
Discounted M i l e
$ 221,740o49 $ 418,530.72 $ 18,478c38
65,335,, 29
Purchased bills
37,595,95
3,132*96
98,331c27
1,179,975.18
United States securities
921,077c03
1,910.71
Fed. Intc Credit Bank Del).
5, £26o06
185o 56
Mui icipal Warrant a
i
2,225o60
Foreign Loans on Gold
668= 05
8,016c57
17,2X9c16
Deficient reserve penalties
4.009„54
Miscellaneous
— JSLJMsJBL
-AJaSLUJL
$1,497, 669o18 $1,435,098,08 $124,805c76
Total
Expenses!
Cost of F,TL Currency
Salaries
Taxes
All other
$
90s397c44 $ 19,470«23
592,777c27
552,448o51
68,318,67
66,41 2 050
362.600o32 _ 2881537o02
$1,114,093c 70 $ 926, 668e26
Dividends paid
171,568e89
$ 175,494a80
$ 34, 877,, 56
5,444061
76,756c 42
159 c22
443c84
1,434c 9 3
474,.
$119,691,09
$ 7,533,12
49,398c 11
5?693022
30,316, 69
$ 92- 841 o14
$ 1,622,52
46,037,38
5, 534138
84.038c 08
$ 77,222„ 36
$ 14,297c 41
51
$ 14, 624c 57
DAILY ATOAGD HOLDINGS OF EARNING ASSETS
Bills Dis
counted
1933
1932
1931
1930
1929
1928
Bills
Purchased
$ 6,267,577
$11,933,801
4,818,935
4,042,859
21,624,673
11.199.882
& 2,936,466
1,649,414
7,607,324
7,870,007
6,328,387
15,354,918
$58,209,321
43,724,651
26,761,330
22,786,786
9,812,359
13,701,741
foreign
Federal Int c
Credit Bank Municipal Loans on
Debentures Warrants
Gold
Uc Sc Se
curities
i*
r
0
68,304
158,671
0
2,579, 658
686s, 803
£64, 520
152,19?
97,671
34,220
140,326
8,784
$
0
0
6,275
0
28,340
0
Total
! 67,477,874
$
57,528,9©?
39,450,206
34,733,872
40,513,743
40,952,128
&VJSRAGE RATE OF EMININGS OF EARNING ASSETS
- ■
■
Bills Dis
counted
1933
1932
1931
1930
1929
1928
Bills
Purchased
Ue So Se
curities
3o 538$
3c 507
3o 500
4,265
.
4c 845
40382
1c280$
3c 9 61
1*748
2c 904
40902
30970
20027$
2,107
2c 233
30280
3*960
30740
Discount
Discount
Discount
Discount
Discount
Discount
Discount
Discount
Discount
Discount
Discount
rate
rate
rate
rate
rate
rate
rate
rat®
rats
rate
rate
Federal Into
Credit Bank; Municipal
Debentures
Warrants
0
2c 773
20598
0
4c 783
3c 885
305004)
3. 500
3a500
30877
4c 9 89
4t253
)
Foreign
Loans on
Gold
0
0
1*779
0
5o031
0
Total
2.219#
2c 455
2c 299
3.310
40636
4,004
effective January 1, 1922
lowered January 11, 1922 to
lowered August 15, 1922 to
lowered October 14, 1924 to
lowered September 13, 1927 to
raised
February 8, 1928 to
raised
April 25, 1928 to
raised
May 14. 1929 to
levered February 8, 1930 to
lowered April 15, 1930 to
lowered September 12, 1930 to
16
SAKNIKGS
Earned at Minneapolis
Earned at H e l e n a
$ 1 , 4 7 5 , 1 6 4 077
3 3 1504,41
$1,497,669.18
A comparison of the various classes of earnings in 1933
with similar revenue in 1932 indicates a sharp reduction in the
income from discounted paper during the past year which was more
than offset by the greater earnings from our holdings of United
States s e c u r i t i e s 0
The net changes in our earning assets resulted
in M i n n e apolis showing $108,473*40 more of current income than in
1932 with Hele n a earnings $45,897*30 less than one year ago*
During the past three years the earning rate has worked against
any great excess of profits although the volume of earning assets
ha s b e e n ample with normal rates<>
For instance, total earning
assets in 1930 averaged $4,*700,000 less than in 1931 but the total
earnings were $300,000 greater in 1930*
The average earning rate
of 2.299 per cent in 1931 was the lowest we h a d ever experienced
until this year.
The very large volume of Governments carried
during 1933 brought down the average earning rate for the year to
2,219 per cento
Throughout 1933 there has been no month in which the
earning rate has exceeded the rate for the corresponding month
of 1932=
Each month until July the 1933 earnings exceeded the
same months in 1932*
Since July the normal income has be e n less
each month than in 1932..
for the past eight months there has been
a steady reduction in the average earning rate with the low mark
of 1*933 per cent reached in December*
This is the natural result
of the liquidation of discounted paper and the expansion of cur
holdi n g s of Governments in Special Participation Account.
It
does not necessarily mean that the average rate will continue
downward because there was an improvement in the rate obtained
from U n i t e d States securities in December and exchanges in holdings
already made indicate further improvement for January*,
After adding $110,789<,74 in December to the earnings
from United States securities we h a d a total for the year of
|1,1 7 9 , 9 7 5 v18c
This was the greatest amount ever received in one
17
EAKNIKGS
(Oontd)
month from this source while the total for the year was ;?355,000
in excess of the amount received from Governments in 1852*
In
January we held ,*53,504,000 of the above securities on which the
return was k82,057«69 at a 1.806 per cent rate-
This? rate gradually
improved until June and then decreased monthly through November
during which month the rate averaged 1.935 per cent.
For December
the average rate w a g 1*988 per cento
Beginning with 1930 United States securities have fur
nished the major portion of our i n c o m e *
During 1932 the interest
of *931,077.03 from this source produced 64*2 per cent of our total
income*
For the oast year 79 per cent of our earnings are the
result of car rying an average of £.58,209,000 Governments.
average held was
;
43,725,000.
The 1932
At the close of December 1933 we
held in our Permanent Account £7,011,650, in the Self-Insurance
Reserve
500,000 and v 58.053,500 in Soecial Participation Account
or a total of * 6 5 ,565,150 par value in United States securities*
7
To cover loss based on market prices at the close of the year a
reserve of .$203,196*03 has been set aside-,
During 1933 the net
addition to System Account was ^583,542,000 of which our proportion
was A 0 , 966,500*
At the close of 1932 System holdings contained
securities 62 per cent of which matured during 1933=
At the present
time securities falling due in 1S34 make up 53 per cent of the
total.
The character of System holdings a n d maturities for each
year are given on an accompanying- page*
We also show the clas s i
fication of our own holdings in Permanent Account a n d SelfInsurance Fund giving- the par value and indicating the market
value o f each issue at the close o f 1933.
One of the direct
credits to Profit and Loss was £26,302*09 obtained as our share
of the profit on sales of Governments from special Participation
Account during the year*
In 1933 we had 483,378,49 profit from
the same source*
Paper under discount for member banks averaged around
>10,000,000 in January and F e b r u a r y «
of
After reaching an average
13,150,000 in March cue to the unusual conditions the average
EARNINGS
hae fallen each m o n t h *
(Contd)
In December the average for m e m b e r 8 ac
c o m modated at Minneapolis was 42,210,000 with $115,000 at Helena.
From an earning standpoint the discounts car "led. do not reflect
the true income because we made refunds to banks going into the
hands *of receivers.
We calculated the interest on the reserve
balance m a i n tained on our books while each bank was in the hands
of a conservator and allowed interest on this balance at the
regular discount rate-
In addition we reverse the interest accrued
on past due paper when a bank closes*
Such adjustments have been
more frequent during the last four months of 1933 with a total of
£8,321*38 withdrawn from earnings*
The greater volume of paper under discount during the
‘
first six months resulted in a daily average for bills discounted
of $6,268,000 and the total earnings were $221,740«49 obtained
on an average discount rate of 3.,538 per cent,
Our normal rate
to member banks has been 2$% without change since September 13,
1930*
The fact that the average rate is in excess of the normal
rate is due to some
5%
paper loaned under Section 1 0 ( b ) .
On
December 31 we h a d $48,900 of such paper.
From February to June, inclusive, we had some acceptances
with the greatest amount in March w h e n average of bills was
$14,258,000.
From July to the end of October no bills were held*
Some allotments were made during November and in December we
received sufficient to bring the daily average for the month up
to #3,100,000.
The earnings in Deoember from bills were $1,456.73
and the total for the year was $37,595*95.
Although the daily
average of bills in 1933 was $2,936,000 compared to $1,649,000 in
1932, the income was $28,000 greater in 1933=
"liile rates on
:
American bil l s were low both years, the greater amount of Foreign
!
bills owned in 1932, bear;* ng higher rates, made more favorable
earnings possible.
All of the bills taken in November and December
were discounted at 1/3 per cent,
American bills in our holdings
19
EARH X H G 8
(Contd)
amou n t e d to $3,080,000 on December 31, 1933 and our investment in
Foreign b i l ls on the same date was $109,000.
Our earnings from municipal warrants, never large, have
b een less in 1933 than for the previous two years.
On an average
daily hold i ng of $64,530 in 1833 we obtained $ 3 , 226c60 orofito
On December 31 we h e l d #80,000 in warrants received from the First
National Bank, Wakefield, Michigan, and the Bessemer National Bank,
Bessemer, M i c h i g a n
R eserve deficiency penalties of |8,016c57 were less than
one-half the amount obtained in 1932 but exceeded the penalties
assessed in 1S30 or 1931=
Although penalties have ceased to be any
important part in our revenue, it is gratifying to note the improve
ment made in the last six months*
Out of a total of $6,936,90 in
p e nalties imposed by Head Office in 1933, 1 1,988,>45 only was ob
tained during the last half year.
At Helena only $56o46 was
assessed since June 30 with $1,033.21, the amount of penalties
d u r i n g the first six monthso
With eliminations of many weak banks
and h e l p from the fu F « Co and the Regional Agricultural Credit
,
Corporation extended others, the penalties in 1934 should be quite
moderateo
The profit from miscellaneous ecurcee in 1S33 exceeded
GCE.e of the current profit itieme and reached a total o i %46,114o39
c o m p a r e d to # 5 t694*11 in 1522«
Through the final settlements
made w ith us by a number of closed banks we ob tailed $4G,15Go65
in interest,on past due paper*
Thie it the most past due interest
coll e c t e d in any /car since 1930,,
The one other item making up
the major portion of the miscellaneous earnings was the payment
of $ 7 , 658 o62 by the Reconstr u c t i o n Finance Corporation as rental
from February 15, 1 '332 until December 31, 1933 on the yearly basis
of $1.00 per square foot for space occupied by the Agency Division.,
F r o m an earning standpoint March was the best month of
1933 with $144,113*78 profit on total earning assets of 182,860,000
The daily average of all earning assets during 1933 was $67,478,0^0
compared to an average of $57,529,000 in 1932.
At the present time
w e are receiving $3,643.93 daily from our Government holdings,
EARNINGS
(Contd)
This basis h e l d throughout 1934 should cover practically all our
normal requirements and the other sources of income should provide
sufficient additional income to cover all needs*
In the following table it will be observed that a
relatively small prop o r t i o n of our total income is derived from
direct accommodations made to our member banks*
During the past
year income which originates outside our District has been gre a t
er than ever before* representing 81.,3 per cent of o u r total
incomeo
In 1932 this percentage was 69„
INCOME M O M DISTRICT
1933
Discount for members
$ 221a740o49
Warrant a
2,226,60
Penalties for deficient reserves
8e016o 5?
Interest on paat due paper of
closed banks
40,150c. 65
Interest on Fed* Intermediate
Credit Bank Debentures
0
Income from Banking House
7*658*62
Miscellaneous
__ 293*1.6
$ 280*086*09
1932
418,530o72
5,326,06
17.S19.16
1S31
168?589 o07
3,423,46
7,725,76
46146* 70
14, 39 6o 79
444c 35
0
218,28
$ 445f885c27
960,58
0
205*61
$ 195,301.27
aw
aaWHajupg,
INCOME FROM WITHOUT DISTRICT
Discount from Purchased Bills
Interest on UoS,. Securities
Interest on Fed0Intermediate
Credit Bank Debentures
Foreign Loans on Gold
Participation in transactions
with Foreign Banks
$ 37,595,95
1,179,975,18
$
0
0
___ U o 9 6
,217, 583,09
65t335,29
9212077c 03
$ 132,998*95*
597, SL8„08
19466036
0
3,161 o57
111,63
1,329.13
$ 989.207o81
7,512,69
$ 741s302o92
^Of this income $6,755 originated in our District.,
SYSTEM HOLDINGS OF UNITSD STATES SBSUSITIES
HELD IN SPSCIAL INVESTMENT ACCOUNT
Treasury Bills maturing in 1934
Certificatea of Indebtedness maturing in 1934
Treasury Notes due May 2, .1934 3%
i Aago i t 1934 2-1/8
t
n
1
1
t June 1551935 3
«
s
s
t
i
i Aug. 1, 1935 1=5/8
t
t
t
H(
1
i Apr„ 15c 1936 2^7 /8
t
t
i
i
t
t
t
t
t f i Aug* 1, 1936 3=1/4
t
t
t
t
i
t Dec0 15,1936 3-3/4
t
i Apr* 15,1937 3
t
t
t
»
»
! Sept, 15,1937 3-1/4
l
t
t
i
t
t Feb* 1, 1938 2-5/8
l
i
t
i
t
i
t
i
t
I June 15p1938 2~7 / 8
I
First Liberty Loan 1933-47
3i
t 1932=47
t
i
t
t
i
4^'
S 1933-38
t
Fourth
"
44
I 1933-38
t
t
t
t
t
4i
Treasury Bonds, due 0ctol5» 1943® 45
$ 412*335,000
470,337,000
118,587,000
156,317,000
115,743.700
93,753,300
179,350,500
51*092*000
96*468,000
68,125,000
80,100,000
25,570,000
19 c750,000
25* 025,000
29,000,000
58,941,200*
197,649,800**
25,000,000
$ 2t223,149, 500
*Called
**UneaXled
21
nrVBSTMESTS HEED DECEMBER 31,. 1933,
U, Sc GoverBmenVjSecuritieg Held in Investment Accounts
Maturity
Date
Add
-
0
0
0
Discount
0
0
a
.
0
.
0
1933*1938
1344-1954
1941-1943
1946*=-1949
1940-19 43
195I-=1955
1943=1945
1946
1S4?
1961
*
*
414
4
3 3/8
3 1/8
3 3/8
3
4*~3i
3
3
3
0
.
«
Par
Value
_____ _
•
0
0
O
0
0
O
$ I„ 636j>QG0
165,900
2,452,700
1,706,000
9,450
335,300
601, 000
3f200
111,600
500
$ 1,665,471.25
171,60S,81
St435 837 69
1.631,895c 62
9,403c75
316.229,81
596»304„69
3, aoo.oo
111 600,00
500.00
$ 6e933,044.62
,
o
,
10c 451o88
$ 6,928,096,81
-
,
,
6„ 504c 07
$ 6?938P548069
c o o
Deduct Premium
Lees amount to be amortised during 1934
Net Market Value
o'.
.
Market
Value
$ 7.011,660
Fourth Liberty Loan Bonds
U 5 S, Treasury Bonds
i i
t i
i
t
t
i
t H
l
a
K
1 I
1 t
t
i
I
t
f I
t I
I
I
I
I
< I
1 I
t
s
I
t
Uo So Conversion Bonds
n t
i
i
i
s
i
Uo 5, Panama Bonds
T Otal
Interest
Bate
.
Investment for Self-Insurance Reserve?
19 33-1938
1941-1943
1946-1949
1951-1955
1943-1945
Fourth Liberty Loan Bonds
Ur So Treasury Bonds
I 1
t )
I
i
H
t n
i
n
n
n i
t
r
t
ti
TOtal
e
o
o
c
e
o
o
e
0
o
9
0
0
4^
3 3/8
3 1/8
3
4i»3i
0
0
0
0
$
$
71,866.75
1980625oOO
57,393075
132,037,50
39 9765.62
$ 500*000
9
70,000
200.000
60?000
140v000
30,000
$
489s090, 62
$
1„340o85
487e749,77
$
103,500,00
Deduct Premium less amount to be amortized during 1934
Ret Market Value . . 0 . . .
B
O
0
0
0
©
o
o
o
Uo So Securities Sold and Held Pending Final Payment
Participation in Federal Reserve System
Special Investment Account c
Grand Totel U„ S, Securities
0
O
Municipal Warrants
0
0
$
103,500
.
.
.
c
.
.
.
.
0 0 o
$58,053,500
$57,946,107,39
0
0
O
o
o
$65, S68?550
$65j.465s453c97
O
o
0
©
0
o
c
0
0
$
79t968019
MEMO
A reserve for depreciation on U0 S? Government securities
amounting to $S03i,lS6o03f representing the difference "be
tween Par Value and Market Value in accordance with above
statements la included in amount carried as "Reserve for
probable losses*1
1
9 9
K &
J
CO
c\?
Q0M?A3ATIVg STATTOgEP
cusreito e x p o s e s of the fe d e m x sbssbv % bake of
Minneanolis
______ 1933____
Salaries
Officers . . ........ .......................
Clerical
„ . . . . ............
Other e m p l o y e e s ................ ...........
Governors'1 conferences. ........................
federal Reserve Agents5 conferences « . . . . . .
federal Advisory C0unciX . . . . * . ...........
Directors® meetings . * . c . . . . „ . . « . . .
traveling expenses .......... . . . . . . . . .
Assessment for Federal Reserve Board axpsnsas « •
Insurance on currency end security shipments 0 .
Other insurance . . . . . . . . . . . . ........
’
Taxes on banking house . . . . . . . . . * . . .
Xdgitf, heat* power and water * . . . . . . . . .
Repairs and alterations . . . . . . . . . . . . .
Office end other supplies . . . . . . . . . . . .
Printing and stationery . . c . . . . . . . . . .
Telephone
* . . . . , c • . . • . . ..........
'Telegraph
. . . . . . . . . . . . . . . . . . .
Postage
. . . . . . . . . . . . . . . . . . . .
Ixpressa^e ...................... ..............
Miscellaneous . .
. .
.
. $
.
.
M
inneapolis ahd m m
o
o
.
0
.
.
.
“
93,022.23
337.SU3.U6
lO9 .3 UU.gO
4 7 .3 U 6 .6 0
2 9 ,8 2 2 .76
lO.3 9 7 .U2
* i05c363cg3
3 6 7 *666.22
119 17^2 e22
806*12
193086
1,296c76
l,U7 3 „Uo
1-957.79
13..S55.50
9-927.97
23 ,562,38
66 ,263.00
17-568.31
1 ,72 2 .5 0
1 5 ,6 9 3 .12
1 7 .266 .U7
S,U55.?it
1 1 ,6 5 1.8 1
9 s.20U .03
10,U32.82
35JU2.77
Total l&elusive of Cost of Currency . . . . . . . 4 038-33&.SO
Federal Reserve currency*
Original costc including shipping charges . « .
77,959.50
Cost of redempti&JSp including shipping charges O
U,2U5„37
Tax on F. H, Bank note circulation
. . o 0 .
8,192.57
Combined
Helena Branch
19-53
;
8 0 6.12
19 3-3 6
1 ,298.76
8 ,0 59.52
29 .3 Us .9 6
IS.U7 2 .7 3
.
branch
9 ,532 .
.92
3 1 . S, 75
30
18 s*
172*73
1^
5 .5 0
lls200 o! 0
600.00
1 ,2 72 .13
3-778.0U
2 ,0 55.67
1-226.35
32,3UOoU2
IS ,79^66
1,939.SI
l?fG17,07
18-993.2S
9, T o 87
o
1 7 r063 oU0
.
10 9 ,669 ,7 s
11t772=79
37S956c50
!
2 1 7 .3 1
1,325.95
1 ,72 6 .8 1
1 .3 3 0 .13
5 .U1 1 .5 9
1 1 .U6 5 .7 5
1 . 9 .9 7
33
2 .6 13 .7 3
a S5.359.uo
s
*Other than those connected with GovernorsJ and
Amenta3 conferences and meetings of Directors?
and Advisory Council„
$ 1,028,73 U .3 0
$ 1 1 0 ,300.13
328.0U7.Ul
1 1 U, 10 0 .9 7
995.39
*
85,359^
$
Combined
1951
$ 1 1 8 0135«23
330,399*32
10 2 ,520 tUo
.
6 1 1 .5 2
18 8 .13
1 „3 1 5 066
7 ,0 61.8 7
17p565o00
l6 eUgi072
lUp865 oU2
1.539.82
9 .750 .26
21,809.73
1 6 .2U3 .1 6
1 U.10 3 .S1
9.232.6s
12&UiO,?3
3 2 .056 .U9
66 .U12 .5 0
1 7 ,568.29
3 1 ,6 7 1 ,5 1
69 .50 U.g5
1 6 ,207.92
1,730.93
13-027.99
16,597.77
5 ,960,01
15,869.71
7 2 ,8 1 9 .7 1
8 ,055 .31*
3 0 .Us7 .8O
5*^37*59
lj 9280*15
1 h s78^.02
5o5S3o92
1 7 *663=61
52,522c95
11,778,79
32f6g6„5S
I p023 rb9 bo2b
s 40 7 ,198.03
77.959^50
M**5«37
8 s192*57
$
6
Total Current Hbcpenses
Combined
1912
16,978.71
2 .U9 1 .5 2
i,UU,093.fo
* 926.&*.,26
$
892,488026
2 ?,386*59
3 ,067062
£
918,9^2.U 7
*
I W i Z Z Q STAl’
iSMBNT SHOW? K G AMOUNTS I NCLUBSS IN Ml SGELUflKBOUS E X F S H SSS
Minneapolis
3-933___
Cental of furniture mid equipment
$
Hepalrs and maintenance of furniture and equipment
Outside protection* rault inspection, etc.
Outside laundry and cleaning charges, etc*
Li eense s and permits
Local traasportation-car fare and taxi hire
Post office box and pastage-meter rental
Newspapers„ periodicals, books, binding; etc.
Collection charges and protest fees absorbed
Clearing house membership dues
Supplies furnished member banka
Copies of bank examination reports
Comrcsrcial agency credit reports and services
■
Photographs
Medical service * supplies and physical examinations
Cafeteria net expens©
Entertainment of bankers and others not la bank*® employ
■^nployeos’education? American Institute of Banking
All other
Federal Reserve Club
Membership dues and donations?
American Bankers8 Association
State and other bankers* associations
Credit Men°s Association
American Acceptance Council
.
American Society of Agricultural Engineers
Twin City Bank Auditors5 Conference
fas .Payers" Association
Minneapolis Police ‘
Benevolent Association
National Industrial Conference Board* Inc*
Police Officers* Federation
Chris tmas dona %ions
Counterfeits and discount on foreign currency, etc*
Miscellaneous expense in connection with closed, banks
Pension Committee
Committee on Bank Reserves
Committee on Branch, Group and Chain Banking
"Excegs expense over commissions in handling foreign business
All other
TOTAL MISCELLANEOUS M P E N S 8S
195* 74
l rI98.02
266o06
2*358*70
19. 25
635*65
2Sic20
3,462.48
261.34
2,214*39
8*621*43
520.75
74.00
514» 27
4,472*83
180.73
1,738 <>00
15*00
2,550*00
Helena Branch
1933
70e80
772*05
5 6 .1 4
135.24
1*00
C\*
Combined
-..m?
$ 15 4 *so
1 , 970.07
322O
20
2 , 493*94
20*25
635.65
1,762.93
$ 16 6 *so
1,705c 21
2,214*72
37*00
757.10
528.30
2 ,038*42
27.55
9 16 *bo
*404o20
3 ,635.90
.50
20.00
261eg4
20.00
2 , 214*39
9 *053=43
556o75
?4 .oo
514*27
4 ^ 72.83
474. T1
i„ 7 9 s 06o
15*00
432.00
36,00
293.5S
50.00
300*00
2,650*00
543 ,0*5
503*00
3»431034
253*90
30*00
106*10
512*36
5 ,867*75
254*50
13*00
263.93
4,138c4\
475*29
4 ,232*15
1,184.00
10.00
3 ,070 .co
£65*00
380*00
127*00
l»4l0.60
564.25
i t4i o b6o
564*25
1 . 345c 49
174.44
1,689*76
U„Qg
l ? 4*44
1,629.76
250,00
90.00
165.OO
300.00
15*00
300.00
15*00
30.00
672.20
100*00
100.00
25.00
57*50
64*95
291c85
897c00
3,420*00
315.00
290.00
194*00
300000
100*00
100*00
25c00
5$ »00
2 4 .4 4
1 , 249 .8 4
15.00
30*00
675*00
100.00
100.00
25*00
57*50
220c 27
1,626.53
568.9s
494.06
2,001.39
1 1 -0 ,2
30.00
641*90
$ 35. 342*7?
6s7oOO
3,6o 4 * H
283®
11
478.gg
5.696.50
4^5.00
29*C0
250*00
340*00
165.00
300*00
15*00
- 30.00
641.90
100*00
250«00
,
Combined
13 & —
$ 266.5U
123=00
223.42
Combined
J f 0f 7
37,39
$ 3 7 *956*50
3 0 , 4tf7.SC
4 32 ,6^ 6.58
100*00
25o00
5B*00
$ 2,613.73
3 X PKNSJCS
Minneapolis
Helena
4 1,114,053,70
$ 1,028,734*30
_____ 85, 359 ,40
As a result ol the abnormal conditions *?hich have p r e
v a i l e d for the greater oart of 1933, **e have had the highest total
for o p erating costs since 1931„
changes in the bank i n g la^s and
vast expansion of fiscal operations effect so:ne of our functions
more than others but practically ever/ exoenee item has been in
creased over lS 32c
Xn making uo the 1933 budget we provided, for
an increased expense at Minneapolis of #33,000 rith a reduction of
approximately $1,200 at Helena,
The Minneapolis costs exceeded
this estimate by $148,000 and the branch estimate wap $7,000 less
than the actual exnense.
O^r 1934 budget has not been finished tut should be ready
for presentation to our Board on January 1 5 o
jJany items entering
into our calculations should sho^ a decreased cost in 1934 but the
very evident expansion to come in soae functions **ill likely more
than offset any reductions obtained elsewhere,
The federal Heserve
Board has also reouested that our budget estimates be based on t^o
oeriode of fix months.
*or the convenience of our o^n Board ^e
are presenting these estimates covering the period of a year the
same as previously*
There are ouite a number of expenses ''"hich
sho^ seasonal fluctuations, but there are also others such as note
costs which ~T cannot regulate as to the time Then bills will be
e
submitted,
We believe budget comparisons on the basis of a full
year *»ill give our Directors a better idea of comparative costs*
"Tiile other items contributed to the increased 1933
costs, salaries, postage and note costs furnished the larger
amounts making
up
the expense total*
Our analysis sho^s there
■ an average monthly increase over 1933 of ’
was
5,900 in cost of
Federal reserve currency, !?,331 in salary payments, £3,070 in
postage and £3,380 in all other classes of expense.
The one item
in ^hich ^e may reasonably expect a reduction for 1934 is note
25
JSXPEM8ES
costs,
(Contd)
borne of "chie reduction will be offset by the increase in
our tax on bank note circulation.
Each class of expense will be
discussed in the order in which it appears on the Expense Statement
with this r e p o r t <
,
The amounts shown are the actual payments made
by the bank*
SAURIES
Minneapolis £>545,3 1 0 o49
Helena
4 7,536.78
1598,77? .3?
Net changes from 1933
Payments to O f f i c e r s t net decrease # 4 ,931c30
“
' Clerical Staff, net
*
increase 39,818.81
Payments to Guards, building em
ployees and other non-clerical em
ployees, net increase
5 , 8 4 1 e35
$45,360o06
Net increase over 1932
4 0 , 3 3 8 e76
One year ago when we made up the budget there was an
indicated pay-roll of #580,000 for 1933 or an approximate increase
of $8,000 over the actual 1932 payments.
ceed e d our estimate by nearly $33,000*
We have accordingly ex
On the basis of December
payments, which included 24 extra h e l p as well as supper money,
the yearly salary expense would be in excess of $630,000.
’
Tith
salary adjustments already approved as of January 1, 1934 and
additions to our e m p l o y e s indicated rather than deletions we
should expect a pay-roll for 1934 approximately $100,000 greater
than was indicated at the beginning of 1933.
Our total personnel on January 1 was 413 at Minneapolis
and 39 at Helena-
This is an increase of 112 persons at Head
Office and 5 at Hele n a during 1933,
While the greater number of
temporary employees helps to swell the total over one year ago,
we may n eed to keep these extra workers or replace them with
others.
Out of the increased number employed at Minneapolis dur
ing the past year 44 are on reimbursable pay-roll, mostly for the
Custody division of the K c
C.
The general work of the office
required additions of 31 persons and transit employees were in
creased from 56 to 84.
Most or ZTxfj transit increase has come
recently caused by the larger number of Government checks now
26
EXPENSES
b e i n g handled.
(Oontd)
At Hele n a similar expansion has taken place in
transit work requiring several additional employees,
borne help
h a s b e e n added through our observance of the N* ru A* but we have
been advised that such observance is net compulsory for Federal
Reserve Banks*
During a good part of 1933 and 1933 the Branch was re
imbursed for substantial portions of the o f f i c e r s ’ salaries and
from September 15, 1832 to the end of July 1933 all of Mro Towle's
salary was p a i d by the Spokane office of the Regional Agricultural
Credit Corporation,
The officers* payments at Helena for 1934
will b e approximately $3,500 greater than for the past year.
At
Minneapolis reimbursement of $9,000 in officers* salaries is re
c e ived from the Treasury Department or the fu F* C»
G O V E R N O R S 3 CONFERENCES
$ 806,13
FEDERAL RESERVE A G E N T S 1 CONFERENCES
’
193.88
FEDERAL ADVISORY CONFERENCES
1,298.76
The expenses above recorded ax*e contingent on the number
of calls sent out by the Federal Reserve Board for meetings at
Washington*
Governors* conferences and meetings of the Federal
Advisory Council cost less than in 1932 because of fewer meetings
in 1933•
During the past year the Governors met five times and
the Advisory Council members four times.
An additional meeting
was h eld b y each in 1932.
DIRECTORS MEETINGS
Minneapolis
#8,059o52
Helena
1,473>40
| 9 ,532.92
The total expense of Directors meetings is $318« less
than in 1932 because of fewer Executive Committee meetings at
Helena.
Branch Directors are n o w meeting regularly each month
b u t there has been no need for frequent meetings of the Executive
Committee.
Meetings of Branch Directors in 1932 cost $2,499,.74.
At Minn e a polis this y e a r ’ expense was $809 greater than last year*
s
The same number of meetings was h e l d each year but the second
meeting in December 1933 was prolonged and the cost of entertain
ing Directors is n o w charged under the above heading.
(contd)
excises
TRAVELING EXPENSES
Minneapolis
Hel e n a
$ 31,306. ?5
$28,348 026
l , 9 5 7 e79
This tyoe of expense has b^ e n showing increases each
year for a number of years and reflects the increased activities
of
out
field representatives as well as the additional bank ex
amination work n o w being done,
Of the Minneapolis total $17,39So44
represents closed bank expense less recoveries with $13,052•52
allocated to other f u n c t i o n s *
Bank examinations cost $6,600*24;
o b t a i n i n g credit information $1,103*83 and maintaining bank rela
tions $3,374*98.
functions.
The balance was spread over the various other
Seventy-five per cent of the bank relations and bank
examination expense has come during the last six m o n t h s *
At
H e lena the increase over 1932 is caused through the making of two
examinations by H e a d Office instead of one as in 1932..
The cost
of these examinations was $1,442*51 leaving' $515*28 for the ex
pense of Branch officers attending group meetings, etCo
A SSESSMENT FOR FEDERAL
R ESERVE BOARD EXPENSES
The Board
$18,472*73
levies an assessment for its expenses each
six months and with our knowledge of what this assessment would
be for the first ha l f of 1933 we estimated a total of 118,500 for
the year.
It has been customary to use the Caoital Stock and
Surplus as of the first of the year in determining the basis for
the assessment co v e r i n g the first six months of the year, but our
payment for this period of 1934 is based on Capital Stock and
Surplus as of November 30, 1933.
No doubt the Board had not ap
propr i a ted enough for expenses during the last h a l f of 1933 b e
cause the present assessment is the heaviest we ha v e ever received,
We are required to pay 115,425•96 as our share of the Board expe n s e s for the first six months of 1934,
In our budget it will
be necessary to provide a like amount for the second six months
making the total payment over $12,000 greater than in 1933.
No
p o r tion of the Board expense is charged to H e l e n a .
28
EX PEN SES
(Contd)
LEGAL FEES
M inn e apoTi s
;j;13P855*50
Helena
600,00
# 14,455*50
Retainers at Minneapolis and Helena remained the same
as in 1931 and .1932 „
Sigurd Ueland, Counsel, and Kolf Ueland,
Assistant C o u n s e l > receive the same fee their father was allowed,
.*9,000 per year wi t h extra paid for matters taken into Courts At
Helena Mr* 7eir receives a retainer of i?100 per month, one«half
of which is c h a r g e d to Minneapolis.,
There were quite a number of
small p a y m e n t s made various attorneys at closed bank p o i n t s »
Only five bills for services exceeded -lf-200, the largest being
#350 paid He "V* King for legal services and expenses rendered at
Sisseton, South D a k o t a »
INSURANCE OH OUKKENOY
AMD SECURITY SHIPMENTS
Minneapolis
5 9,937., 9?
Helena
1 ,373,13
$
11,200.. 10
Although there was some natural increase in this class
of expense over 1932, the most of the increased payment of
#1*967*42 w as the result of absorbing the cost of the gold ce r t i
ficates shipped in during March and forwarding other kinds of
money in replacement*
There appears to be no good reason why this
insurance expense and the greater item of postage should not be
reimbursed by the Treasury department but we were informed only
such expense created after April 5 could be r e i m b u r s e d »
None of the
cost of shipping federal reserve currency from 7*ashington or for
notes sent H e l e n a by Minneapolis is included in the above total.
INSURANCE
(Other than on currency
and security shipments)
Minneapolis i 2 8 t5 6 3 c 38
H elena
3,778»04
* 32,340,43
The above total is #383*93 more than the 1 9 3 2 total
but requires further explanation.,
On August 1 our -1*1^000,000
b lanket b o n d was renewed with the yearly p r e m i u m ^14,000 or a
reduction of # 3 , 500c
1933 was 4 l f455c85o
The savings effected for five months in
Increases in the amounts paid monthly on
our Group Life policies and for V/orkmen8s Compensation have
added materially to our insurance costs*
The Group Life which
also covers our employees on fiscal work has added p3,100 to
2 9
£XPSNS£S
1932 c o s t s .
(Contd)
In this connection we requested the Reconstruction
finance Corporation to give us their views in providing this cover
for employees on custody work and whose salaries were reimbursed.
They asked us to submit bills for this expense.
so we h a ve not yet received their check*
Although we did
If payment is refused
we must add approximately #1,600 to 1934- insurance costs and give
further consideration to the cover i n g of temporary employees.
Other insurance costs show little change from 1S32.
TAX33 UN B A M PhftUSSS
Aiinneaooiis
'"feS, 263,00
Helena.
2 t055,67
* 68, 318 *87
For eleven months we reserved *5,350 monthly at
Minneapolis with -,*7,413 set aside in December to provide the 1933
tax payable in 1934*
The additional amount charged in December
was on account of the increased rate*
Our valuation for 1934 will
be reduced £100,000 so that our tax should be reduced unless there
is another increase in the tax rate*
At Helena the increased oayment was
,209.17 with no
change in valuation but an increase in the tax rate.
LIGHT. HKAT A M D PQwfox
Minneapolis
#17,538.31
H elena
1,226*35
# 18.794.66
Less oil was actually consumed in 1933 than in the
previous year.,
In October we lost approximately 30,000 gallons
of fuel oil through a break in the connecting pipe, the oil being
r epl a c e d at a cost of & 1 1 0 4 e45.
The amount of oil paid for in
1933 was 144,725 gallons compared to 141,118 gallons in 1932,
Deliveries
gallon,
up
to October 1, 1933 were at a price of 4.69 cents per
In October we paid 5 cents per gallon and since the rate
has b e e n 5.25 per gallon.
On this basis we may expect an increase
in oil cost for 1934,
Light and power expense at Minneapolis cost
in 1932 and
,10,0 5 0 c 32 for 1933.
same as in 1932 but more frequert.
9,395.11
Our contract rates were the
of elevators and electric
30
EXPENSES
(Contd)
equioment as well as many more employees contributed to the in
crease c
"Je may expect approximately the same total expense for
these services in 1934.
City water furnished cost >453*11 and
oll3»26 less than one year ago.
At Helena there was a net reduction of $30 in the above
costs.
Coal is used as fuel and the price of slack coal at $4=50
per ton has not changed for several years *
Changing to gas heat
is b e i n g considered which would mean some increase in the cost
but be more satisfactory in other ways-
Light and power costs
run quite u n i f o r m with previous y e a r s »
REPAIRS A N O ALTERATIONS
Minneapolis
£1,723*50
Helena
217,31
$ 1,939,81
The u o - keep of our property at Minneapolis and the
changes which are frequently necessary required an average outlay
of vl44 monthly in 1933,
Most repairs were minor while alterations
were few, the principal change being in cage work to provide addi
tional soace for the Agents' department costing approximately
400 and ;.407 expended for new steel bins for storing silver in
sacks on the lower vault l e v e l .
Helena costs are moderate, painting and redecorating
of the vault requiring most of the amount expended in 1933,
OFFICE AND OTHER SUPPLIES
Minneapolis
^15,S93«12
Helena
1 „ 333c95
“ 17,017,07
r'e anticipated higher costs in 1933 for office and
bu i l d i n g supplies but were not prepared for an increase of 35 per
cent in excess of 1932.
Increased services to the Government
and the expansion of 30 per cent in number of persons in our
premises made necessary more office supplies, and the increased
personnel also required additional service s u p p l i e s .
For several
years we had been able to reduce such costs but further expansion
seems likely in 1934.
borne stocking up at the close of 1933 may
make lighter purchases during the first part of 1934,
31
EXPENSES
(Contd)
Helena had carried over from 1933 some additional
supplies so that 1933 expenditures were $113 less than in 1933.
The Branch will show an increase for these items in 1934*
PRINTING AND STATIONERY
Minneapolis
5 l 7 y3 8 S 047
Helena
__1, 736<>81
£ 1 8 ,993c28
During the past three years printing and stationery
costs have increased approximately
?2,000 yearly,,
For several
years we were able to reduce our costs by revising forms and
through price c o n c e s s i o n s 0
Prices have been hig h e r during the
past year but the heavy increase in forms and the.necessity for
many circulars and instructions to be sent banks of the District,
much of it for the Treasury Denartment, added considerably to
our costs,.
With the additions to our membership our printing
expense will no doubt show further increase in 1934,
As advised
one year ago the increased costs do not indicate more ourchases
♦
of expensive forms and rulings because we simplified rulings and
lowered grades of paper several years ago.
TELEPHONE
Minneapolis
Helena
.,8,455.74
1,330^13
9,785,87
Telephone costs show an increase of 65t over 1932,
Omitting March the average monthly increase at Minneapolis has
b e e n £180.
During March costs were three times as heavy as
during a normal month *
Most of this extra cost was the direct
result of services rendered the Treasury Department,
’ knew it
»e
w ould be difficult to obtain any reimbursement for this expense
and made no effort to do soSome of the increased expense in 1933 is due to adding
of trunk lines and full use of our internal telephone system*
TEI&GRAPH
Minneapolis
$11,651-*81
Iis1 ena
5,411-59
i 17,063,40
Reductions n & d been matte yearly since 1939 principally
because of the falling off in volume through decreased membership.
Each month until warch last showed a falling off in telegraoh
costs compared to the same month in 1932.,
During the banking
holiday there was a vast amount of wiring done mostly for the
■PNS&&
EE
X
Treasury Department-
( ontd)
C
On May 1? we submitted a bill to the
V
Treasury for reimbursement, among other items, of $3,635.38*
We were advised that .§
3,636., 17 of this amount h a d been approved
for nayment*
Recently we were written that the bills were be ing
reviewed again*
There seems no reason why we should absorb this
exoense but if unpaid we must add to 1934 costs.,
Since March there has teen an increase in telegraph
exoense at Minneapolis and a decrease at Helena compared to the
co r r e s p o n d i n g period of 1933*
Allowing for the payment of our
bill by the Treasury Department we would still show an excess
over 1933 of jl,316*29 and a decrease of #133=60 at Helena*
Much of the Helena total results from daily wires required by the
Board or Head Office.
POSTAGE
iiinneapoii s
#98, 304 303
Helena
11,465.75
#109,669.78
In 1933 the postage item forced our total expense over
the budget total and in 1933 postage was one of the chief factors
in the heavy increase of expense.
Although the postage used on
our own notes, sent from ’
Vashington or shipped to Washington for
redemption, is not charged against the Postage Account,
there
was enough other usage of postage to raise the total expense for
this item 415,000 above our estimate for 1933,
This was largely
a result of the increased volume of currency shipments coming
during and after the banking holiday.
The expense of all mail
shipments of currency and coin to and from our member banks is
included with postage.
Another contributing cause was the greater
volume of transit items as well as the larger general correspondence
Another item requiring mention because it is h a r d to estimate,
was the surcharge on each shipment of currency and negotiable
securities,
On the shipments of currency and coin sent to and
received from member banks we absorbed over -15,000 in surchargeso
This amount was in addition to the surcharges on shipments of
notes from W a s h i n g t o n »
EXFSNSKS
(COntd)
Helena postage account shows an increase of 44 £ over
1932 c
This was a smaller oercentage Increase than at JLinneaoolis
due to Head Office absorbing so much more in surcharges and send
ing* out a great deal of information to banks including those
situated in Branch t e r r i t o r y ,
No prediction as to 1934 postage expense may be made
with confidence but with no unfavorable situation arising the
postage costs should not greatly exceed those of 1233*
dJUf'AtAtiiaAwrig
Minneapolis " 10,433*82
Helena
1,339.97
& llj773o?9
During March, April and *iay the expressage paid on
gold, currency and silver coin cost 14,733,04 or ^3,400 more than
was expended during the same months in 1932c
Practically all of
this increase was due to shipments under instructions from the
Treasury Department and replacements of other kinds of money for
the gold sent in-
In May ^e submitted vouchers covering f3,090*94
of exoressage oaid by the bank but to date have been reimbursed
for only $474*.33*
The charges absorbed by us for expressa.ge
d u ring the last half of 1933 are approximately 41,000 less than
for the same period of 1932,>
le believe there will be some re
duction in the shipping expense of coin during 1934, especially
incoming shipments.>
Automobile exnen^e and miscellaneous express charges
amounting to &1,791„15 were included in the above Minneapolis
total*
one year a&o this expense was fc6Q4ol3*
FEDERAL hSSEKVE CUhnEftOY
(Original cost and ship
ping charges)
77,959 050
At the beginning of 1933 the Bureau of Engraving had
printing orders amounting to $12,000 for preparing our Federal
reserve notes, which with shiooing charges fro® Washington and
surcharges, indicated a total expenditure during the year of
not in excess of I 18,000•
With the banking crisis developing
many Federal reserve notes were printed in March followed by the
EXPENSES
(Contd)
p rinting of ^47,580,000 in bank notes during April-,
No more
Federal reserve notes were printed until September and each month
since a part of our order for the present Fiscal year has
Drinted-*
been
Federal reserve notes printed during- 1933 have cost
?37,739..75 to which must be added #17,772 for postage, insurance
and surcharges on amount shipped to MinneapolisAll the bank notes ordered were printed in March and no
further orders have been g i v e n .
was
The bill for printing bank notes
i19,497 with £2,950*75 expended for bringing part of these
notes to Minneapolis.
with the Federal reserve notes still to be printed on
the order running until June 30, 1934 and the portion of the 1935
Fiscal year order to be printed before the close of 1934, we feel
our note printing expenses for 1934 should not exceed *18,000.
*ull particulars of our note holdings will be given elsewhere in
this report,
FEDERAL RESERVE CURRENCY
r^ost of redemption includ
ing shipping charges)
* 4,345*37
Under this caption we show the expense of sending our
u n f i t notes to Washington by Minneapolis and Helena and the insur
ance charges on our fit notes returned to us by other Federal
reserve banks*
At the end of 1932 we h a d -:
il,035oS0 set aside for the
;
h a n d l i n g of our unfit notes at Washington,
By July we felt with
the increased circulation of Federal reserve notes and Federal
reserve bank notes that additions should be made to the redemption
account.,
since July we have reserved L100 monthly and we will
continue to do so until we are advised of this expense in July.
TAX ON FEDERAL RESERVE BANK NOTES
8,192.5?
This represents the tax on the daily amount of our bank
note circulation at a rate of 1/4 of 1 per cent for each half
yearly period.
We calculate the amount of the tax each month
and charge to expense.
Payment of this tax is made to the
EXPENSES
(Contd)
Treasury Department in January and July*
tie are e s t i mating a
tax of $40?000 in 1934*
CAFET&RIA
(Net Expense)
'^4,472 „83
The total cost of food and operating expense of our
ca f e t e ria was $16,932*23 in 1933 o
Receipts from our employees
a n d those of the Reconstruction Finance Corporation amounted to
' 12,459o40 m a k i n g the net amount absorbed b y the bank f4 , 4 7 2 083c
c
This is :
!
*334 more than the amount absorbed in 1 9 3 2 0
However,
u n d e r federal Reserve Bo ard instructions we may assume one-third
of the total cost so that the cost to the bank was $ 1 , 1 7 1 023 less
than the amount authorised-.,
Helena has no cafeteria expense or
allowance,
MISCELLANaOlIS 2XPEKS3S
Minneapoli 3
1-35,3 4 2 0 77
H e 1 ena
2 613 73
______
,
$37,956.,50
o
Including the cafeteria expense of ^4,472*83 the items
not r e gularly classified required the expenditures of
than in 1932o
7,500 more
Our explanation of each item n e e ding detailed in
formation is offe r e d below:
Repairs and maintenance of furniture
and equipment cost ’ 1 9 8 * 0 2 at Minneapolis and '’
1,
-772=05 at Helenao
We have a number of contracts covering special m a c h i n e r y but have
our own mechanic for adding machines*
At Helena most of the p a y
ment goes for the maintenance contract covering addi n g m a c h i n e s 9
there being no mechanic at the Branch*
Outside laundry charges
of - 2 , 4 9 3 o94 cover the towel service and any renovating of
draperies, e t c &
Car fare and taxi hire ^635*65 represents the
cost of presenting collection items and the taxi hire for women
employees when detained late in the evening on special work; news
service, books* the bind i n g of our records, ticker service, e t c u
cost .?
:3,685o90 in 1933c
Supplies furnished member banks cost about
five times the amount expended in 1932c
The $2,214*39 expended
r e p r e s ented mostly special lists published weekly during and after
the b a n k i n g holiday of ba,nks licensed or permitted to reopen and
also banks operating on a restricted basis.
EXP&asSS
(Contd)
Cop5.es of bank examination reports furnished by
National and State Departments cost
£5 ,896,50 in 1932*
9,053*43 compared to
’ received more reports in 1933 ^ith the
Ve
price of the National reports increased in November 1932 from
3?o50 to £10.00 and will continue at this rate until July 1,
1934.
Helena pays #5*00 for copies of jiiontana bank reports;
reports from Commercial Agencies and services cost ^556o75;
medical examinations for new employees and supplies u s e d in
W e l fare Department $ 5 1 4 -27c
For the entertainment of bankers
not in our employ we spent #474*31c
Our payment to the American
Institute of Banking for e m p l o y e e s 1 education was ,;?1}798.
Jonations to the Federal heserve Club at Minneapolis were 4 2 , 5 5 0
with
300 donated at Helena.
Dues and contributions to various
ba n king associations and others aggregated
2,024.90*
Miscella
neous small amounts expended at closed banks to protect our in
terests totalled
1 , 4 1 0 *6 0 .
Our share of the expense of the
Committee acting on pension matters was
564„2 5 .
For the excess
of expense over commissions in handling* foreign business we paid
the New York bank .;l,889«7So
COMPARATIVE rafCTIOHAL EXPENSE HEFORT
(Minneapolis Only)
1933
. 1933
Average
Ntrabe?
Of
Officers
General OverheadControllable
Average
Camber
Of
Employee^
Expense
1.90
2c 42
$ 71,746c47
General overheadRon-Cont rol1able
Average
Rusber
Of
Officers
2.15
Average
Number
Of
Snrpl o;ye e a
2,43
22.20
$ 67,676.06
79,080c 77
176,673.58
Provision of Space
Ixpen s©
22.15
120,063,73
122,390,80
Provision of Personnel
.15
Se51
15,958.01
.15
do 22
15,345,15
General Service
.83
73,70
99,451,47
,31
67,45
95,144.0 8
34,538,69
48,995,06
Postage
.07
,05
27,887,98
,10
.06
27,901,31
Failed Banks
1.55
19,63
82,950,86
1.17
14,19
74,003,00
Loans, Rediscounts &
Acceptances
1,15
10,37
34,938,05
1.12
8,51
32,631r04
Securities
«42
11,15
26,503,39
.50
8,75
22,846,24
Currency and Coin
.23
21,75
45,978.30
,31
18*50
40,776o78
Check Collection
•28
46.50
72,110,78
.29
38,40
63,995,23
Kon-Cash Collection
*22
18c63
28,042*91
,20
17,06
27,385.10
Accounting
.58
14,94
40,319,14
,65
12.18
36,623,48
1,93
53,77
113,571,34
I, 53
23,29
68,330.19
Insurance
Fiscal Agency
6,089 o63
Legal
6,424.12
Auditing
,45
8,21
23,015,68
,50
So 59
23,855,06
Bank Relations
.55
!o 53
12,294,65
,55
1„ 33
9 t728,37
.18
806c63
Foreign exchange
Bank "Examination
*94
8, 67
47,351.64
,94
3,46
25,733,99
Federal Reserve Wote
Issues
.21
,95
4,754,67
,21
.73
4,453 71
Statistics! and
Analytical
,30
4,82
17,709,48
,30
4.34
16,137,64
328,98 11.117*214,01
llo 48
260,64
$895.006,81
Grand Total
11,76
lf028,734,30
Total current expense
Income from banking \\cv ne{ Credit)
96.261,53
...
.
1£5. 20*
$1,117,214,01
^Credit balance - Less supplies used than purchased during 1933 and 1932c
847,214.95
7,658.62
Reimbursable expenditures
Stock of Supplies
.
48,360 71
o
568, 85*
$895,006,81
FURNITURE A N D SQJJIPMSNT
With a much larger staff than one year ago and greater
volume of items b e i n g handled, we were forced to buy many machines
and o t her equipment during the past year*
Our purchases h a d been
quite m o d e r a t e for several years and aoart from a few necessary
replacements* we fed. expected suoh costs in 1933 to be light*
As
a great many of our employees use machines for at least part of
their work, it follows that any increase in personnel means added
equipments
Our transit machines are n o w gett i n g heavier usage and
while we have an excellent m e c h a n i c , replacement must be made w i t h
in a reasonable time<,
Machines of this character are expensive
and it is quite likely that our 1934 purchases of furniture and
equipment will be greater than for a normal year o All expense of
'
this nature is w r i tten off at the close of the year*
Description of 1933 purchases
20
15
1
18
2
9
1
1
2
3
5
40
1
1
1
22
28
1
1
50
1
Typewriters
i 1,422*21
Adding Machines
5,745*73
Bookkeeping Machine
1,190*73
Electric Fans
234„25
Coin Counting Machines
1,316«73
steel Partitions for coin stacking
407.00
Dodge Truck
700->50
Typesetting machine
1,242.38
Remington Totalizers
120„00
Endorsing Machines
1,485*14
Transit Units
372*50
Steel Lockers
338<>00
Rug for Officers Quarters
5 1 6 B48
Time Clock for Branch
325«00
Manganese Safe for Branch
1 9 4 000
Desks
l P520o38
Chairs
1,121*16
Scale
66.-,92
Stamp Unit
4 7 o50
Transfer Cases
87« 50
Vacuum Cleaner
54,50
Shelving
3 0 4 r99
t
Filing Equipment and Cabinets
1,Olio67
Miscellaneous small purchases
242<.96
Lumber, Hardware*etc*
210 027
l?so"w;5^
Less trade in allowances
_
731«50
J19 ;547 „00
j
Amount expended to close of 1932
#481»744 .,74
Purchased during 1933-Minneapolis # i 8 , 8 6 9 o06
Purchased during 1933-Helena
____ l r4 0 9 c44 # 5 0 2 ?033*24
j
Less amounts received for furniture
and equipment sold or traded in
23,890,05
Net amount expended
# 4 7 8 9133*19
Fire Insurance c a r ried at Minneapolis &25,000• 00
Fire insurance carr i e d at Helena
10 y000>00
^35.000c 00
Bm . FRMasSS HEP OKT SECE&BjEB 31, 1933
FiilPSRAL HEISTS BANK OF MIN&5AFOLIS, MINfl,
KJXLDIKO SITS
Original cost of land
o c o c c c o o
Incidental expenditures connected with purchase
Total o . o o
Less proceeds from sale of salvaged material
Cost of building site
e
c
o
c
{
*
0
9
0
0
9
0
O
O
O
C
O
C
O
O
O
O
D
c
0
o
O
6009000c 00
8,46eo66
602,468,66
1,948,00
600„ 520 o66
o
c
c
0
c
e
n
HJILDIHS
Preliminary expenditures , . „ D . . »
Cost of construction?
Building exclusive of vaults
& fixed machinery and equipment 0
Vault construction, including
any additional structure or
foundation made necessary 'by
vault, and vault equipment
Fixed machinery and equipment . ,
Less sale and charge-off of
2 mechanical coal stokers
(Original cost $1P956 each) . Q «
.
Miscellaneous building construction ex
pense incurred 'by Federal Reserve Bank;
Fee a & Expenses; Architect’ •„ . * «
s
Engineer*s * » » . *
A^XeS
o o i o o » o e o o « o e o o a
in tenanc S o o s u & o o o c o o o o e
"
Cost of new 'building e • * * » . . , .
Cost of building and building site „ .
Charge»offss
Depreciation allowances . . . . .
I^'XeS
Maintenance o 3 o 4 o p « > o o p »
TO^Sjl o o o e o e p o o s o . e e
Book value of property 0 « . . . . . .
C
C
O
O
O
O
Q
a
O
Q
O
t
i
S
O
3,000=48
1,730*065,37
323,750c54
$623,966,55*
620,053*55
3*912*00
148,, 02? 79
15,846o00
74,350o00
21.705:66
$ 2,936.799,39
$ 3 55378320*05
o
$ le037s408o68
74,350,00
21,705,66
& I,a33n464c34
LUHmhiw wri —tliirwii nn
m
$ 2,403,855c 71
MEMORANDA
Reserve against depreciation?
BtliXdiQ§ e o o e o o o o o e e o o e
Fixed machinery and equipment * c * 0
TOtal o s o o c e e o c o » * e « « o
230,990,67
566.139 068
797c130o35
Floor space?
(a) Occupied by
{ ) Rented o c
c ) lino ccup led
(d) Total floor
119,829 SQo Ft<
4,910 Sqa Ft,
0 SQo Ft,
1240739 Sqc Ft,
•
Federal Reserve Bank
e e o e o o e o o e o
oor. 0 0 * 0 0 0 $ «
area in building . 0
Includ.es $100*000 of architect's fees and expenses.
40
B A M PBSMISSS REPORT DECEMB&ft 31. 1933.
Federal Reserve Branch Bank at Helena., Montana.
Original coat of land and building , • • • • • • • • • • - « $
lS^OOOoOO
Cost of remodeling?
Building; exclusive of vaults
and fixed machinery and equipment , « * « « . « ■. »
.
Vault constructions including
any additional structure or
foundation made necessary by vault
Vault equipment, including doors,
lining, and all interior equipment * * 0 • » » • « « «
Fixed machinery and equipment , » c 0 » . « 0 • « „ «
,
Fees?
Architect :s
Contractor^ Commission
•
e
e
o
«
o
«
a
o
o
o
c
e
®
»
t
o
o
o
o
o
57,642*93
9s266000
667580o53
16,108o99
5^ 433o 57
7.44g012
TOt S i COSv t o e o « » » a o o o < > i > c o o o o t e o e * « $ 1 77 j47 4o .4
t
i
t
Less proceeds from sale of salvaged material . , « « . • »
75 r
,00
Cost of building end building site * , . „ * . 0 • . . « e $ l?7„399c
.14
Depreciation allowances charged off*
Charged to current net earnings 0 * » . * . c . . * * $ 21,290,15
Book value of property « . . . , * . . .......... • • » • $ 156s108e99
KEMCRAMPA
Keeerves ©gainst depreciation?
Building * « • • . „ . . .
. . . • * $ 89»418*74
Fixed machinery and equipment e « o . e . . • c * , «
16,108,, 99
POtal a « * e o o o a f t o O o e o * e » e « o e f $ 105 j527i73
>
Floor Space?
Occupied by F0 B* Bank
0 0 • * . . • . . . * . . * •
Jien f ed s o s o e o o e o o a o o o » o o o c « « e o o
c
4700 Sq* Ft<
v
SQe
^11
Unoccupied o o o a s o o o o p o s e r e o c a o o o o
^ SQ: Ft?
Total Floor area in building 0 < # 0 » • . - < . . • * 4700 $qc Ft,
>
>
41
flEDMAi fllS&KYft AAKK OF M I P S APOIIS
ti
SBAfrO^OFFS OF LaSD,, BUILDING. Aai)>IXiQ3 ^ACHIh'SbY
Land
vOST
$600*520,66
1926 Adjustment of Architect ?s
,
fees* transferred from building
to fixed machinery and equipment
1926 Sale and charge-ofis of two
mechanical coal stokers
$600 520c 66
CHARGED OFF:
1919
1920
1921
19 22
1923
1924
1925
1926
1927
Total
Book value grogs
Depreciation Keaerves
1924 ’
1925
1926
192?
$100,000o00
.
1100-000., 00
$500, 520, 66
Building
l&UIPMSfl?
Fixed Machinery
and Muir*c>ent
$2,416,745,84 t 523* 965, 55
Total
$3a541,. 232,05
100*000% 00
100*000*00
$2r316r745,84
3* 912c 00
$620 053,55
3e912o00
£3C537,320 05
*
$
$
$ .■
. .......
_
$620,053<, 55
H a 33* 464= 34
$2,403,855,71
100,000c00
3, 381,40
11,646.6?
37,222,97
29 3P310o 62
30* 463084
579438o64
500.000,00
pla033,464:. 34
$1*283P281450
DEPBi&IATIQH JRESERVE A2JD KBT BOOK VALUE
V
1928
1929
1930
19 31
1932
19 33
Total Depreciation Beeervea
$500* 520- 66
Net Book Value
38, 814,40
32.516,86
5,665,63
25 -665,63
25., 665 „63
25 s655a63
25, 665„63
25,665=63
25.665,- 63
I 23p.990c67
$1,052, 290*82
$ 13,814,73
5,2c396,-. 55
7 1 , 222:, 9 5
62,000.35
62.005.35
62.005.35
62,005,33
62,005,37
59 0839 035 A
59^ 839 o35 A
?6
$ 53,913,87
$1 606,725 36
j.
o
HSL&SA 3dANCH, FSD%ftAL HESKHYBS BABE OF MITOSAPQLIS
CEA£GE--OrjTS OF L M D ? BPI1DIMG, M B F I M ) M A C H I K m A^D JgaUIPMSHT
Land
Total Cost
Charged off 1920
Back value gross
5 .000.00
5.000.00
Building
Fixed Machinery
and Equipment.
156, 230= 15r & 16J.08.99
tf^r»ry!—*i
?
?? .m
^ T*
21,290,15
l6 aI08o99
135.000,00
177,399,14
txxz& sTffrjrziG & as*
21, 290,15
156008c 99
g aBB S t e s n a a c .'. x ; , r g g
F^r^»UP9ai^«fc«i:xs»»< w M W I
w «»C 3 * R «s ic a e
DEPRECIATION RESERVES 42®
BOOK VALUE
Deoreciafcicn Reserved
56, 447.49 $
1920
$
1,893,23
19 21
ls655,37
1, 610.,90
19 22
1,541o73 B
In 571005
1923
3,125*80
10610,90
1924
38125,80
1,610,90
1926
2r700o00
lv610a90
1926
2,700,00
19610o 90
1927
l0610o90
2S700c 00
1928
1,610.90
2,700*00
1929
Zt700o00
1,610c 90
19 30
1,680,06
2}700o00
1931
•»
*
2, 700o00
1932
_____ 2,700o00
1933
t — 89£418,?4.
Total Depreciation Reserves
§jm.-O--a.-jiw'gxa Bi'iwr i> > -r—jB ,ijWm $ 16-108,99
r wT fa r ! L
if
:a a
R c T - .-*
•
**
*
% 5, 000o00 j 45c561,26 <
Set Book Value
f(A) Met after deducting .2,166, 00 for O is Elevator Service Contract*
/
(JB) Met after deducting $69«, 17 for replacement-a,
'Total
$
*
105, 527, ?3
50,581,26
g i f ' " r a a r au ^ a n g a f f i 1
tok
BANK PREMISES
At the present time almost all our available space
is b e i n g made use 03? for the first time since we came into
the b u i l d i n g in 1935•
We need the space on the second floor
n o w o c c u p i ed b y the Agency of the Reconstruction Finance
C o r poration and will soon be required to use some of the room
on the street level which is not particularly adapted to bank
worfeo
H eavy increase in the issue of Treasury Warrants has
added m a n y items to be h a n dled by the transit department and
there should be a very material increase in other items through
the additions to our members*
The effect of the deposit in
surance p l an should be to further expand transit operations in
the Federal reserve banks*
While the most evident need for
additional space is in the transit work, we look for expansion
in most other functionso
Our estimate for 1933 to cover bank premises cost
was 3123,330 with $ 1 2 4 , 7 1 9 032 the actual e x p e n s e »
In December
we r eceived $7,658*82 from the Reconstruction Finance Corpora
tion as reimbursement of out-of-pocket expense since the Agency
of the Reconstruction Finance Corporation came into our building
in February 1933«
We h a d not anticipated this reimbursement
but it w a s decided to make such request after learning that other
Federal reserve banks h a d been receiving similar payments*
The
limit of time during which the R. F , Co Agency may remain in our
b u i l d i n g has b e e n e x t e n d e d to July l f 1934- and the rental to be
p aid on the yearly bas i s of $1*00 per square foot will be
$ 4 0 9 o16 monthly..
Taxes continue to exceed all other items maki n g u p
our b uilding operation costs*.
Our estimate of $ S 4 f50O for 1933
taxes was not sufficient due to the higher rates*
r eferred to on a following page*
This will be
Additional employees, the use
of m o r e p o w e r and light and greater quantities of service
supplies preclude any reduction in most expense items and it is
also possible we may be forced to ask for the space occupied
by the R e c onstr u c t i o n Finance Corporation before July 1*
BANK FK&MISSS
(Contd)
Ho extensions or major repairs have been required in
conn e c t i on with b u i lding or power plant during the year 0
Any
n ece s s a r y repairs for upkeep have be e n made by our own employees
at small costc
plants, e t c .s t
The bank premises including power and h e a ting
is in first class c o n d i t i o n
„
Extensive alterations in arrangement of cages o n bank
floor to provide more space for the A g e n t 6s deoartment^ were
h a n d l e d b y our own men,
The alterations in marble and bronze
work required outside workmen with the cost about # 4 0 0 a
Steel
bins for storing coin on the lower vault levels were provided
at a cost of $ 4 0 7 o
None of this expense w a s in the nature of
a replacement and chargeable against reserve accounts*
The only
item c h a rged against the reserve for depreciation of equipment
is #3*186 representing the elevator maintenance contract he l d by
the Otis Slevator Co*
Our fuel oil contract, which is renewed each year as
of the first of October* calls for an advance for the current
fuel year,
Payments
up
to September 3 0 ? 1933 were at the rate
of 4o69 cents oer gallon*
The rate in effect until October 1,
1934 is on a sliding scale with the maximum orice not to exceed
5.50 cents oer gallon,,
per g a l l o n »
At this time we are paying 5c25 cents
From January 1 9 1933 to the close of the year we
received and paid for 144,725 gallons of fuel oil*
In 1932
we purch ased 141,118 gallons*
Electric current is bought at graded rates u n d e r a
five year contract with the Northern States Power Company dated
January 2, 1932*
Consumption of power has increased in keeping
with our extension in personnel.
Total payments for current at
Minneapolis during 1933 were :i0*050o32 with
1932„
*9,.3 9 5 d l paid in
No material change is looked for in 1934*
B A M PREMISES
(Deor eci at i o n )
For the past six yea r s we have set aside, o n the last
day of each year,
the sum of
.25,665o63 representing 2 oer cent
of the e stimated replacement cost of our building..
This is a
BAHK FKEHX9ES
(Depreciation) (Contd.)
u nif o r m procedure throughout the System but the value of
3 83.000
placed on our building represents more than we
could obtain for it and was the basis for our objection to the
tax a s s essment several years ago.
According to our methods
of calculation, the bu i l d i n g proper cost $3,318,745o84<>
The
gross value was reduced between 1930 and 193? by $1,033,4640 34
char g e d against e a r n i n g s c
In addition to the amounts charged
off, we have accumulated in a reserve account $330,990*6? or
18 p e r cent of the estimated replacement caste
The Board has been much more liberal in allowing us
to p r o vide reserves for the depreciation of fixed machinery and
equipment*.
With 10 per cent of original cost set aside yearly
we had, at the close of 1933, $ 5 6 6 , 1 3 9 c68 reserved or w i t h i n
453,913*87 of the full a m o u n t •
After 1934 we will cease to
make reserves of this character until replacements are r e q u i r e d *
In nine years the only charges against the reserve account
represent the maintenance contract of the Otis Elevator Company
on a yearly basis of $8,166*
The charge was formerly made to
expense but for 1933 and 1933 has b e e n considered a proper
charge against the reserve a c c o u n t «
Allowing for all reductions
and taking into consideration the depreciation reserves, our
Minneapolis property at the close of 1933 h a d a net b o o k value
of $1,606,735*36*
While this value is over |1,900,000 less than
original cost, it is still much high e r than the amount which
could be obtained in event of a sale*
Our H e l e n a property is n o w being depreciated at the
rate of $2,700 yearly or %f> of a replacement value of $135,000»
The original cost of $ 1 6 , 1 0 8 c99 for fixed machinery and equip
ment had all been pr o v i d e d for through reserves made u p to the
close of 1931.
The cost of the b u i lding including remodeling
vault c onstruction and vault equipment was $156,390*15 which
is too high a price considering the location.
During the past
14 years $110,703<,89 has been charged off or set up as
B A M PREMISES
{D e p r e c i a t i o n ) (Contd.}
depreciation, leaving a net book value for the building of
$ 4 5 ,581*36 which could not be obtained were we to close the
branch.
B A M PREMISES
(Ta x e 8)
For the past two years our property at Minneapolis
has b e e n given a valuation of #3,150,000 for tax p u r p o s e s .
Changes in the tax rate and special assessments made it nec e s
sary to reserve $66,363 in 1933 compared to $64,180 during 1933*
For 1934 and 1935 the valuation will be placed at $3,050,000
which n o r mally should give us a reduction of approximately
| 3,000 in taxeso
While our budget will call for the reserving
of $64,000 during 1934 for tax payments in 1935, we will not
k n o w b e fore November the exact amount to be set a s i d e .
We are
payi n g about $20,000 lees in taxes than we were several years
ago b u t for a non-income producing property, we are pay i n g much
too h i g h a t a x 0
In addition to regular taxes, we contribute 1 per cent
of the real estate tax to the Tax P a y e r s 9 Association, which
or g a n ization acts for the large property owners in investigating
proposed bo n d issues a n d other matters affecting property values
and taxes in M i n n e a p o l i s «
At Hel e n a the tax rate is substantially the same as
at Minneapolis, but the valuation much more f a v o r a b l e .
.
On an
original cost of $177,000 the branch is given a valuation of
$79,767 and paid a tax of $1,895*67 for 1933,
This tax was
$155«89 h i g h e r than in 1932 due to an increase in the rate»
Taxes at Helena are p a i d during the same year in which a s s e s s e d 0
D ISCOUNT OPERATIONS
The amount of credit extended to member banks through
the discount of paper during 1933 was smaller than for a number
of years past, although only slightly less than the amount ad«
vanced d uring 1931*
Loans amounting to $50,172,000 were made
to 271 member b a n k s 0
During 1932 accommodations amounting to
$ 1 4 5 , 522,000 were extended to 333 members*
The number of notes
discounted was 12,038 as compared to 28,893 during the previous
year*
There was a reduction in b o t h the number of items handled
and the amount advanced to members in each State in our d i s t r i c t 0
The daily average holdings of bills discounted during
1833 was ftS52 S 8 5000 in comparison with an average of *11,934,000
held during 1932*
On December 31, 1932 discounted bills amounted
to $ 9 * 6 0 3*815 and at the close of 1933 the total was reduced to
€1,873,000.
In addition to the number of notes discounted 5,123
notes were received as collateral to bills payable at Head Office
and 912 at Helena Branch; notes received as collateral to general
line n u m bered 144 at Head Office and 217 at Helena; notes rebated,
8,563 at Head Office and 1,025 at Helenao
The total number of
pieces of paper handl ed b y Head Office was 27,933 including 3,049
acceptances purchased in the open market, and Helena Branch
handled a total of 3,144 p i e c e s 0
At the close of 1932 we held $611,649063 in bills pur
chased through foreign banks b y the Federal Reserve System Open
Market Committeeo
During 1933 acceptances purchased in the open
market payable in dollars amounting to
to uSo
'22,824,019o30 were allotted
’
Of this amount $17,603,000 was purchased during February
and M a r c h with no further purchases until N o v e m b e r 0
At the close
of the year our holdings of purchased bills amounted to
3 , 189,208c9 6 including
108,995c, 32 of foreign bills*
4 7
oc
TJf
-DISCOUNT OPjgRATIOSfS - M1N1IBAPOLIS A8D H3LE1TA BRANCH
i
Month_______________ 1933
January
February
March
April
May
June
JulyAugust
September
October
November
December
Kumber different
Banks
Huzaber at Banks
Served
1 9 3 2 ______ 1931
Ihl
l6g
100
S9
78
55
U5
k2
ks
___ 31..,__
2 1 1
154
m
1 S1
150
173
206
220
201
1S3
10?
191
. 150
9)4
6U
7U
69
S7
109
92
90
ss
1 U5
12^
139
333
159
.. 1933
265
Numter of Items
Received
19~S2
2865
1.570
2 .U96
9U3
873
667
1,723
1,229
1*878
1,683
12 0
03S
23,893
t 7^1U
6,79*
18**38
795
3,552
2,520
1,0*7
583
876
110
969
l tU2U
885
877
1,9 6 3
2*725
212
klk
....
...
1931___________ 1.933
3*271
2,202
2,328
3.605
3,376
2,910
587 *
§
01
385
559
Rediscounted
000 Omitted
1932___________ 1221
A m x m t
1**57
1,2 3 0
1 ,0 7 5
8*5
130856
$ 50*173
2*281
1*35**
1*297
1,173
1,617 _ _________ 756
* 17,298
17,323
10,380
8,901
lU,812
ll,Ul9
17,90U
11,093
8,533
10,838
9,U56
..... 7.502
$ 1U5,52U
$
$
2,676
1,785
2,138
1,680
2,796
3,002
2.515
2,190
2 ,Uo6
1 3 .U83
6,254
7.367
50,292
VOLUME OF REDISCOUNTS
ilmobsr pieces
Rediscounted
Mianeso fca
3,91^
8r720
k,H01
2,553
U,727
1333
19**2
1931
1930
1929
Minne so ta
Total sxaoant
Rediscounted
1933
1932
1931
1330
X929
South
north
Dakota
Dakota
1 ,1^2
5 f126
2,27S
2*6^6
2 C59’
4
U 0Uo3
9,690
3=750
2,908
1.Z5U
Morth Dakota
South Dakota
,
0
2 3,23^5S1 =S7 $ 1 ,83^,390.30 $ i0 t 99 E097 o &
62^253^ 5*68
9,7UU,596.70
33,l85c35So35
20.312,698o23
12 f1 9 7 . * .hi
07 *
5.377,637,75
5,715.117-80
6s„927>l
}fe9S
M 6 1 s8iSc0 g
1 ,002,17 ^,330^6
6,8^3,982.U3
3,S2Cs797o30
$
Montana
Wisconsin
980
2,873
1,996
2*3^2
1,587
778
1,186
Montana
l fo 6l
530
k 2 2
Wisconsin
Michigan
•Total
SOI
12,038
1,298
28,893
13,656
11,096
11,238
370
127
15*
*
Michigan
Total
$ S, 5 2 7 ^076*26 i 3 » S i 3 , 7 ^ 9 3 $ * c7 Si,030,98 $ 50,1 7 0 2 7 : 9 5
5
185039r003c22 lU.U5i.66l.lU
1U 5,521.872.18
7.2U7.797.09
U, 557,033.83
5 ,53 U 1600.1 1
50,292,2US„60
1,713.196.27
2 ,230,165.12
2 ,550,968.26
88,316,725.6U
^,033 ,1 9 3 .to
11,590,966c86
5,350,693.53
5 .U65,736.27 1 .035.2U7 ,006.85
CLOSED BAMKS
At the close of business December 31, 1932, the unpaid
liability of 85 suspended member banks and one non-member bank
to us was ^1,670,512*63.
During the year 1933 member banks to
the number of 40 suspended, and of these 13 were not indebted to
us on account of rediscounts^
The remaining 37 member banks added $ 1 7163,496...69 in
liabilities, making a total of # 3 , 8 3 4 , 0 0 9 . 3 1 o
T
.7ith respect to the one non-member bank mentioned above?
The First National Bank of Scranton, North Dakota, consolidated
on March 3, 1931, with the Bank of Scranton, a state non-member
which latter bank at consolidation assumed liability of the
member bank to us on account of rediscounts in the sum of ;?44,353.00c
On October 14, 1931 the Bank of Scranton suspended with this Iia~
bili.ty only partially reduced.
It was reopened April 35, 1933
and the assumed liability was fully paid on February 6, 1933«
The total collection from all sources during 1933 amount
ed to v l ?4 1 4 ?9 4 3 £
,40.
Of this amount #1,376,431»37 was applied to
reduce the direct liability of the suspended banks, leaving a net
balance due from these banks of 41,457,577,94, at the close of the
year 1933.
Of this latter amount the remaining liabilities of 13
banks totaling 4173,595*84 has heretofore been charged against the
special reserve set up for losses*
Uncollectible advances o f 7
banks amounting to # 5 , 4 1 4 c88 were charged to Special Reserve for
losses during the past year making a total of fl79,010*73 chaiged
to such Reserve A c c o u n t „
Names of the banks from w h i c h recovery may not be made
and the u n collected liability of each are given in the December
report from the closed bank d e p a r t m e n t •
On December 31, 1933, the number of banks on our closed
list indebted to us was 94 including the 12 banks just referred
to whose liability has heretofore been charged against the special
reserve.
As security to the liabilities of the 83 banks in our
closed list not yet paid or char g e d off amounting to ,?1, 283,983.10
we hold ^ 4 , 397,927c71 in notes.
In addition we still retain paper
CLOSED BANKS
(C o n t d )
classified as worthless in the sum of J 3 4 7 ,363o44.
Tills paper
is collateral from the banks whose indebtedness to us has been
charged off.
Up to the close of 1933, 411 member banks and the one
non- m e m b e r abcve mentioned had clo s e d with total liabilities to
u s at date of suspension of £18,527,334.15.
Of this amount, we
have rece ived payments aggregating #17,069,856.21, including full
l iquidation of original liability due us from 318 banks, and
there remains now due only the sum of $ 1 , 4 5 7 , 5 7 7 094 as heretofore
indicated.
In addition, we have received #387,913*32 interest and
$393,338.21 in reduction of our collection e x p e n s e *
Unpaid col
lection expense accumulated as of December 31, 1933 amounted to
■£304,888.87,
During the past year 414,536,80 was credited as
recovery of expense, #36,733»11 as interest collected from these
closed banks, and $3,437=54 interest on other advances made to
protect our interests.
In addition to the recoveries mentioned, we collected
during 1933 in certain accounts ^13,863.43 over the original
liability due us at date of suspension from these suspended banks
and n o w have in this account $73,647.,47, which eventually will
apply as recovery of interest and/or collection e x p e n s e »
The average number of employees on this w o r k during 1933
was I S .63 as compared to 14,19 during 1933.
An average of 1,55
o f f i c e r s 5 time was allocated to this function in 1933 in comparison
with 1*17 in 1933.
COMPARATIVE FUNCTIONAL EXPENSE
1933
Salaries - Officers
Salaries - Employees
Traveling Expenses
Stationery and Supplies
Telephone and Telegraoh
Legal Fees
All other
Total
411,600.00
37,836c46
17,343.88
l,356o05
725*84
7,854* 63
6,344.01
$ 8 3 , 9 5 0 o86
1933
^1 0 v313*55
31 ,,936.85
15^131>67
1,;3 8 8 053
737,66
7,149,-64
7',4 8 3 oil
#74,008,00
CHECK COLLECTION FUNCTION
" ( M n n e a p o l i s Only)™
During 1933 this function handled I S ,867,768 items
totaling ^3,869,953,595*60, an increase of 1,685,375 items and
<>537,557, 3 3 9 o16 in amount as compared to 1832 with 17 ,183*392
items totaling $2,342,396,256«44*
A comparison of the number of items handled* the
average number of e m p l o y e e s ? the total expense of this function
and the average number of items h andled per employee for the
years 1929 through 1933 follows:
Year
1933
1932
1931
1930
1939
No. of Items
18.867,768
I?', 182, 392
18 j974 „06?
,
21,139,718
31,75 1,365
•
Average No« Total
Expense
Employees
43,50 p 72,110.78
38*40
63,996*23
39o83
71,196*45
77,873o?9
43e 57
53 c 81
8 8 ^661.60
Ave.Cost of
Daily Ave*
NOo of Items Handling
Per Person
1,000 Items
1,344
.> 3*33
f
i
1,477
3,72
3» 69
1,605
1,634
3 o63
1,356
4 601
A classification of the items h a n d l e d by the variou s d i
v i s ions of this function for the years 1931 through 1933 follows;
I t e m s Hand l e d On
Twin City Banks
Members & Non Member Banks
(This district)
Other Fo h. Districts
Direct to member and non
member bank s (Other F .h .Di st *)
H e l e n a 7 Montana
Treasurer of United States
Number of Items
1933 "
'1932
"
3,711,357
3,457,376
12,131,768
11,608,286
1931
3,836,559
13,131,668
1,343,131
941,775
940,368
6 1 s074
31*597
1,688,851
IST5B7 f?S8
40,018
13,701
1,131,336
171527398*
37,438
11,439
1 , 0 1 S,615
187974, OS?
The table b e l o w gives a comparison of the handl i n g costs
for 100 items and the average number of items h a n d l e d Der person
per day for the various divisions of the Transit Department for the
years 1929 through 1933!
Year
1933
1932
1931
1930
1929
O utgoing Oountry Checks
Ave« NOo Items
Costs
1,574
§770#
24.7#
1,911
/j
IJol*^
2,040
24 o8$
3,063
29 o 5$
1,551
City Checks (Clearings)
Costs
k v e f KOo Items
3.315
17.6tf
Si 216
19,4 $
3.274
3; 156
30.1*
30 07$
3,071
Year
1933
1932
1931
1930
1929
Government Checks
Aveo NOo Items
2 ,589
3,387
3,281
2.363
2,065
heturn Items
Ave, No* Items
452
431
462
482
443
Costs
§ < €f
1 > (:
25o9^
36 o3 <
p
27 o2<*
26o9^
Costs
irrre
lc36
1,36
1c 36
1.43
Due to the National Banking Holiday in L a r c h , 1933, and
as we h a v e endeavored to comply with the maximum hour provisions
of the Bank ing Code u n d e r the National recovery Act eince August
8, it h a s b e e n necessary to employ additional help* which increased
the expense of this function §8,114*55 over 1933*
however, the
large increase in volume of items handled in 1933 over 1932 en
abled us to han d l e items in three of the four divisions of the
check coll e ction function at a lower cost per hundred items in 1933
as c o m p a r e d to 1932c
The large increase in return items handled
in 1933 c o m p a r e d to 1932 was due to the National Banking Holiday*
w h e n b a n k s were proh i b i t e d from remitting for checks drawn on them
and w e r e r equested to return such items during that period*
During
December the volume of Treasury Warrants h a n d l e d increased approx i
m ately 371.000 over the preceding month* which was due to United
States Government payments to 0. W. A° workers*
For the months of
A u g u s t , September, October and November we h a n d l e d a total of
444,000 Treasury Warrants as c o m pared to 4 8 4 ?000 for December*
A comparison of the 1933 check collection costs with
the latest available figures for the other federal Keserve Bank
h e a d offices (first h a l f year 1933) indicates that our costs are
b e l o w the average for all main offices,
The below table shows the
average cost ox handling 100 items in different divisions of this
function for all h e a d offices and the lowest bank costs for the
first half of 1933 and our costs for the full year.,
City Checks
(Clearings)
Our I S 33 Ave* Costs
Our j?irst Half 1933 kve*
Costs
Average Costs F. h*
B a n k 5s Head Offices
Average Costs Lowest
IT. ho Bank
17*80
Government
Warrants
Country Checks
Outgoing
Return
Items
21*60
2 7 eO0
«? 1 *IS
<
22.0*
28*30
«98
30*70
38*80
37,90
1*18
15*70
22*00
20-30
*91
16*70
During 1933 we h a n d l e d 365/773 return items totaling
^27,021,000 compared to 279,615 items totaling ^16,319,000 in 1932=.
Included in these figures are non par items sent to us in error,
items drawn on closed banks and banks on a National or btate holiday
CHECK COLLECTION FUNCTION
(Contd)
b a s i s 5 non cash items forwarded to us as cash items and items
returned b y drawee banks for various reasonso
The daily average
number of transit letters received and sent* the number of b a nks
added to and removed from our par list during the years 1929
through 1933 are given in the table belowj
Year
Letters
Received
Daily
1933
1932
1931
1930
1929
1,391
1,163
1,244
1,351
1,425
Letters
Sent
Daily
942
1,020
1,150
1,312
1,413
_____ ____
Ninth D i s trict __________ ___
Banks
Banks
Banks
Banks
Reported Reported Removed
Added to
Closed Opened
From List Our List
134
143
274
160
92
15
28
2
7
7
58
• 58
97
70
73
2411
5
2
7
r>3
FEDERAL RESERVE BANK OF MlfftflCAPOLI S
REPORT OF TKB TRANSIT DEPARTMENT FOR THE YEAR 1933
MONTH
Nu
1253.
ffumber
MEMBER & NOft-MEMBER
CLBARING3
Amount
Amount
N\imbe r
January
February
March
April
May
June
July
938,818 $1*9,207 .aoUaz
271,157 $104,624 ,346 ,2 4
BJ,0S3 ,788*92
812,498
Uo,297 ,357.33
2U76108
93*046 .270,30
784,579
275.101
39,07? ,9X6.93
334*494 115,253 ,302.69
**9,990 ,•130.32
951,5^7
e0 9 ls2?0
12S,bSS - G l G M
355,642
59,385 ,962.59
337c9^o
159 s838 ,350,29 ,165,345
69,775 =393.71
71
32b,2U3 l6o,l47 ,520,38 ,115,752
,^78.53
6 9 ,2 a , 2 0 9 , 0 0
311,070
August
156f 9 7 ,216*49 ,10 1,3 17
>
September 309 017
l6g,l4o ,45iel4 ,026,108
6s ,079 ,7^9.72
69,928 ,1+69,1*3
328,370
October
164,757 ..l66022 .082,954
Hemember
3 10 ,12 0
1Us.121 5201c93 „C01,7o0
65«95S .361-51
150.402 JLSfLli nOSixgQO. -iL&Sfi , 8 o U ? U
December J Q 1 M 1
^oial
3. 711,357
12 ,131,75
l , 638#580,386,89
$ 7 17 ,0 19 ,117 ^ 9
Monthly Ave0
uo e 1 13 ms
Monthly Avs
Amount s
1.010.980
30 9 ?279
$
1 3 6 ,5 ^ , 3 6 5 .5 7
Grand Total Items .
e „ , * ,
Grand Total Amounts
„ c . ,
, vg'
$2 ,8 6 9 , 5 3 ,595,60
9
TO OUR HELENA
BRANCH T?T US
Number
Number
Amount
Number
9 6 v872
$16,032 ,656.51
3,600
13.258 ,327.22
14.258 >6430?4
U.561
1+.756
lgesUs ,324.47
18,177 ,998.41
17 *972 ,274,77
17,987 ,052,80
18,3^6 ,079o31
19,334 0ll 6 c66
18,188 1739.16
,
6,366
79»553
98,884
1013858
98»4l0
103.152
111,714
112,783
105,931
113,766
104,494
115,704
72^3,121'
12,198 ,39*+. 52 2,9*+8
80S
13.616 ,828-31
5,903
5,630
7,1*8?
6.761*
5,938
6,118
61,071*
$198,219,“
♦35,38
Amount
$ l6 ,5ls.;286028
TREASURER OF THE
UNITED STATES
Amount
Number
Amo \i i*
$
81,73S :ll„97k ;22b,,iP
87,105 16,578-578,42
99,98’ ?’
1,5>*7
,380vUoC,53
132,9bS 30#7?5s197 os
1,516
126,311 28,828*880-49
1,1*77
121,866 26,489,590.2 J
1,596
1,680
110,705 23,5^6,314,1?
101,184 18,118,548,81
1,635
99,15? 18,764,078.03
6,539
U,l*85
131,002 2\l60,3?0,29
U.igo
113.159 21,187,842-19
U.272
493,673 31.671,212,96
1 -688 >85*
31,597
$274,39*5 <>299-2?
$38,488,925c25
$3 s250>U3lf32
?2,835, 566.03
2 ,765,bl9o0U
508, 112 ,12
2,718, 39 0 .12
>*,1 1 0 ,923 cuu
3,071, 689.59
3,8!»1, 22 U , 60
3 ,565 ,271,66
3,7Wt„ 000,30
3,878, 589.12
3,^2, 7 1 7 ,3 7
U.0U6mU821cg6
i.n m .
m
1 .U10
1,260
■» '■!»«■» fa 1 1
r* .
5,089
103,593
$ 59 ,7 5 1 ,5 9 3 .12
A.O ; U V ;
OTHER RhlSSRVS 3AKKS
DIRECT TO B A M S
IN OTHER
RSSSRVK DISTRICTS
$223.-090,02
155,615.32
316 ,1 *
56,58
208 »958059
208,805:So
219-089,99
226,508.68
164,120.87
492^59,50
394a487051
327,0350 85
_3l4,iq2«55
140,737
2,633
$ 3,207,UlOcUU
$ 270 ,869,28
$ 22,866,274,94
TON cm CLEARINGS THROUGH FEDERAL RSSSHTS BANK
d i r e c t sehdings to o t h k r be s s h t e ba h k s
Amoxmt of It sms
B>nth
A©
sa tint of Xtesss
on Kpls.Bsaks
op
January $92,127,013.50
February 78,164,082.63
ss»reh
76,920,376,19
A p ril
101,222,126.05
Sfe.7
1 1 1 , 573 , 100, 3s
J'tm*
139,001,436.68
Ju ly
140,684,164.70
August
138 . 317 , 054. 3s
SepteBT>erl49,o4o,591.04
October 138 , 828, 545,65
November 129,390,431.04
P ecaater_ ]£ 5Jft3<
a.97o63.
$ 1,4 2 1,76 2 ,119 .8 7
Awor&geby
ma t h s $ 113,480,176.65
Daily Average
Amount
Grand Total
Srajid Total
Clearings
Held Over
Sfu&bsr of Items
. .. 1933_________ 1322.________ 1222_________ 1932 __..... 19 31 ...........193?
$39,599,991.32
$13 1 *727 , 004.32
579,109.03 $97,006.9^ $92 , 069.35
33,703,498.30
1 1 1 ,8 ^ ,5 8 1 ,4 3
132,585,109,05 102,573*53
76,985.87
3 3 , 623, 365.30
110,544,241.49
147 , 582, 963,61 171 „3U3„Uo
78,987,90
37»544,5l6.67
138,766,642.72
l44,g35„6o&.72 142,209.58
68, 500.96
44sto5,i64.0 8
155 , 978 , 264.46
140, 392, 741.69 167 , 169,73
6s f 8l 6.03
47,260,999.95
Is6,g62,436.63
154 , 256, 260.34 152 , 311.48
63, 711.39
SO,588, 7S5. 59
191,272,950,29
14 9 , 651 ,^09.17 129,519.39
71,862.49
46, 235 ,965.33
184,553,0 19.71
154,682,634.21 148,100.40
77,929.4s
50 ,9 ^ ,73 6 .5 3
199.955,327.57
165 , 666, 242.37 144,395.63 108,380.82
54,81)0,762.18
193,669,307.83
170,083,,362.32 139.5W .9&
91,962.55
54 ,36 0 ,9 11.15
184,251,342.19
151,285,628.36 144,185,, Go
93,049.70
57,342,012^13__________________________________________ 8j^l=66
$550, ^ 209.03
$1,812,38 3,576.75
$ 9 7 3 ,% . 51
$1,972,188,328.90
$1,699,294.05
$ 45,868,850.75 $ 164,349.017.41
i
BY OUR m u s m Turns 19^H and I W 2
OF MXSSBAPOLZS FOR 1951 ead 193?
$15 1 , 031 , 964.73 $ l4 ls607.84
$3 1 , 118.63
n,&8
106,03?
57,792
95,573
13,208
110 , 4oi
52,821
106,654
61,560
104,091
68,166
103,111
67,705
88,36s
65,360
85,631
74,272
84,976
84,421
84,513
80,199
74,443
°g
._J 9,4.76
1 , 123.769
794,393
6£,199
93,647
193?
$5,878,770.37
5,32 8 ,115.0 7
2 , 006, 266,93
5,499,737.40
7,175,8 34.0 7
8,246,792.55
8,595,850,36
8 . 316 , 069.26
9,425,333.1*5
U , 732, 045.¥>
10,001,315.28
l4 ,1.4 ?t 592.23
122L.
$7, 280,786.-80
6 , 424, 784.35
? co4l., 6o i .29
7,372,616.42
7,929,391.13
7,719,450 .71
6,712,180.85
6 , 315 , 176.77
6 . 553, 339.85
7,329,838.51
6 , 130,291^02
5,856>24;US
$82, 665, 882,18
$96,854,328.07
$8,071,194.00
$6 , 888, 823.51
MX3TOBA3PDL15 OKkY
cohpahativs giauaies fo r m a s i ? mBA&Tmws
Daily Avemga Ember
Daily Average Jfamber
of Transit Lattore
o f Transit Letters
January
February
March
April
May
Jane
July
August
September
October
November
December
Average by
Months
January
February
March
April
May
•June
July
August
September
October
November
December
Average by
Months
____ 1933
... 1912
...
1,179
1/196
1,160
lt161
1,13^
1,13^
1,13^
1,133
X0
1S2
1,177
1,110
___ 1 *206...
.
1,391
iei 6a
_
2S
U3
1912
1933____
1932.
193*5
1932
1933
1932
56 ^.g
55,128
60,088
63/427
00,594
66,682
69,501+
62,169
6^,129
6*
4,139
78,99^
54,71**
56,101
55,372
57-OS2
56.716
58,105
53.750
50„ W f
55.531
53.639
63,1 %
hi M o
2,85^
2 CS?7
l t>00
2,201
2 ,3^8
2,622
2,JOS
2 ,t o
2,971
3^ 6
3? 3^2
3,701
M o 1
:
M55
Ur2hg
V i 02
U,i6l
f
3,555
3,172
3,1^9
3,399
3,151
3,35**
31.0^7
63.551
56,79s
2*705
3
95*5
939
779
960
gUg
9SU
1 s002
1,029
959
9%
911
._ m
1,059
1*050
1,062
1,033
l 9 fe
0
1*021
ic031
1,010
992
979
980
963
959
s?6
5*306
9X9
S13
Slk
mi
783
500
325
826
528
875
739
7*J8
820
B2H
Q76
iro 6o
932
952
1,015
1,113
1 JJ16
1,020
1,220
922
Daily Average Clearing Items Missent
.
_____ 1933 _______ 1932
lk
lb
15
X?
14
33
32
9
IB
35
12
29
16
30
11
28
26
12
12
31
hi
16
lk
. . __ 39_.
_
30
Daily Average 'Zrm&iM
Items Sent Direct Xlf
Oar disbar Bastes
9^2
1,173
1.2^5
i , fa .
i,6s6
1,561
1,!»3
1.436
1,361
1,310
1,293
1=3^2
1.351
Bally Average Clear
ing Items Heturned
Danaid
1 3 3 ^ .. ... 19323S
kS
?106
k9
kl
21
29
39
k2
^3
30
*0
4
25
Ul
35
Ug
28
... 27
... _3i.
Daily Average All
Sent
Heceived
..1933
Daily Average Soaher of
He t o n Items Handled
lk
Pally Average Out-oftown Items Missent
1933
12
11
10
19
27
23
20
17
22
18
23
23
1932
15
12
20
21
20
21
20
21
21
16
19
17
19
19
... .
Daily Average ffoaber Draft©
deceived in Other Than
Twin City Is
Brefcanf?e
.
1933
1932
22k
197
183
225
12b
220
220
159
210
157
1^5
201
215
153
2U6
160
161
191
19S
i*a
15 U
198
lUl
198
157
212
Daily Average
Hxsaber of
Imoloyees
1932
193^
**5
^5
^5
U6
55
'4S
57
*S
4
55
57
53
61
53
54
65
6s
51
6H
*
*?
65
6?
U«5
59
Us
M i y m y o u s ajstp h s l e n a b r a n c h
OFfcFiATIO^ Of CHECK ^ U s d s O r AMP COLI-SCTIOS DEPARTMENT
Detailed Classification Jffoabers and Amounts of Items Handled by Months during 1933 with totals for 1929>1930>2,931 ^ 93? end 1933.
(In thousands only o000 omitted)
ITEMS
M A M S
OH BANKS Iff Q W DISTRICT
ITEMS DRAWH OH BANKS HOT IN 9th DISTRICT
OTHER F, R 0 DISTRICTS
Month
Local Banks
JSoc Amount
.
1933
t7&nc
Feb*
Mar*
Apr*
May
Jt?ne
July
Aug*
Septc
Oct*
2
£ovc
Dee.
279 $93,181*
go , 611
255
75*27’
;
279
309
95^73
• b 109,570
52
329 131=131
322 lUl.TOU
307 136 ,1*70
30S ll+5,89S
326 1 to, 581
311 127=629
307 128,691
Total
3 >653
$ 1,1107,216
Ourgel¥63
lOo
Amount
7
7
13
U3
47
29
24
22
20
20
16
$ 31r0?2
29,S31
?6,gp6
37,910
38,209
46,382
45,944
46,0^8
45,oo4
45,490
k S r ^ k
17
:S5
Other Banks
Bo^_ Aioount
1,015
S TB
$ 5 3
1*034
1*185
1,264
1 ,2 1 1
1.19 2
1 ,16 s
1*2*40
i 5i{3
3
1,226
$1*88=575
13 , 1*21
672
UU,l401
>*3,253
55=172
65,177
76,890
789679
75,702
78,1*72
81. 1*80
?6 ,i{go
75=851
$806,229
Interchanged
Branch and
Head Office
Amount
So.
2
2
9
2
2
3
3
3
s
5
5
5
519
563
69U
586
4
3
1
$ 2,836
2=766
9)8
2,71S
1,382
5
5
*
>
g09
6
3 ,81+1
6
6
3,5^5
3 =71**
1
3,879
3=i©3
l*,0U7
4g?
674
1 ,3^2
1*026
1,10 2
1,^59
1*2
b
7
7
62
110,663
Other
Reserve
Banks
Amount
HOc
Direct
Sendings
Amount
No,
>*,111
3,072
$38,U90
103
85
Treasurer of
United States
Ho 0
....... Amount
$ 1 7 .61s
99
13.532
106
10 g
106
111
120
121
H3
1 0 3
15=11**
1M53
l 6 ,l 5g
*
21,1*89
20 ,96s
20,552
2 1 ,1 1*U
*
121
112
124
1,330
n
159
1
%
146
134
20,658
125
122
15S
l6o
54s
22,556
21=055
$226,297
ffcuaber
20 e779
18,7**3
20,9*t0
23,1*1*8
2U-275
15=206
19,679
26,867
3U,02l*
32 ,36*
*
30,217
26,1409
21,220
21,828
26,166
25 .0S1
36=836
2,001
Total Humber and Amount of Items Handled 19^V192Q
1933
1932
1931
1930
1929
s
$
Ansouftt
$ 3»293,3^'
2,907,272
3,558,161
M69.356
1*,711,582
$315,897
'Ifetal for
1933
..
.
Amount
ffOo
1*509 $215,107
1=333 191,1*33
1,372 188,536
l,66o 21*
0.736
1,820 266,376
1,888 310,563
1,820 313 ,351*
1 =776 30l*,3l*7
1 =71*6 3l6 ,s6o
1,877 321.066
1,7U5 302,765
2,233 317,221*
Total for
19*52
Amount
Bb
1,505 $237=778
1,1*18 203,833
1,597 237=3^7
1,632 21*2,756
1,571 21*2,770
1,602 21*4,277
*
1=U75 2l9 „c6g
1 ,1*86 255=273
1,507 2l*7,5W*
1 ,651+ 260,797
1=575 21(0,079
1,721 21*5.750
2QS779
18,7^3
$3,293,367
$ £ 9907*272
N OK-OASH COLLECTION FUNCTION
(M inneapolis’
Only]H"
There was an increase of approximately 50 per cent in
n u m b e r and amount of City collections handled during 1933 as
compared to the previous year*
The Country and security colle c t
ion divisions showed a slight decrease in volume* and U« So
Government coupons collected showed an increase of approximately
10 per cento
During 1933 we handled 993,315 City collections amount
ing to # 163,388,000 in comparison with 665,974 items amounting to
>103,6082000 collected during 1932»
The majority of these items
consist of drafts drawn on local gr a i n firms*
Country collections nu m b e r e d 53*563 amounting to
•jjfSl,0 7 9 , 000 as c o m p a r e d to 55,772 items amounting to #34,618,000
h a n d l e d during the previous year,
In addition we passed credit on
3j686 items amounting to #5,660*000 which were sent direct
by
other banks, to banks in our district*with instructions to remit
the proceeds to us for their a c c o u n t •
Security and coupon collections, other than U*
ment coupons^ numbered 57,198 amounting to &19,616,000*
Go v e r n
During the
previous year we handled 59,318 of such items a m o u nting to
>23*007,000*
United states Government coupons collected increased from
4 4 7 ? 179 items amounting to &7,4 7 8 ,000 in 1932 to 493,684 items
amounting to #8,156,000 during 1933.
COM
PARISON OF N BER OF ITEMS BlCjBIVSD FOR COLLECTION
UM
C ity C o lle ctio n s Country C o lle ctio n s
1933
1932
1932
1933
3, 667
4 ,7 7 3
J a n 0 51#154 3 3 { 912
3, 6 86
4 ,4 5 9
Feba 43, 3? 3 2 9 ,7 6 9
Mar0 51, 268 31, 255
4 ,7 0 0
4 ,8 0 3
4 ,1 4 2
4 ,7 7 4
Apr0 7 3 ,0 9 0 2 6 ,6 3 8
4 ,7 7 0
89 ,3 4 9 2 5 ,9 1 4
4 ,4 1 3
May
4 ,3 3 5
5 e092
June 1 0 1 ,9 1 7 2 6 ,2 3 2
3 ,9 7 2
6» 472
Ju ly 89,199 2 6 ,7 7 1
4 ,1 3 7
4 ,3 2 3
Aug;, 1 1 7 ,3 2 8 9 2 ,1 9 4
4 ,0 0 8
4 , 277
Sept.1 4 3 ,7 3 4 1 3 5 ,9 9 0
4 0277
Oct, 9 6 , 351 9 9 ,7 5 0
5 ,2 2 0
Nov, 7 4,7 5 1 6 7 ,7 9 6
4{l 615
3 ,8 6 6
Dec., 60r 701 6 9 ,7 5 3
5 0 399
4„ 155
5 5 ,7 7 2
T otal
6 6 5 ,9 7 4
52 f 563
9 9 2 ,2 1 5
Amount (000) omi 11 ed
1933
$ 1 6 3 ,3 8 8
$ 21,079
1932
1 0 3 ,6 0 8
2 4 ,6 1 8
S ecu rity C o lle ctio n s Governmnet Coupons
1933
195
1933
1932
2 7 ,4 1 5
2 9 ,5 1 5
5 ,2 1 4
4 ,2 1 0
4 ,2 6 4
7, 308
1 0 ,6 0 5
3, 207
1 9 ,4 7 9
1 5 ,0 6 6
4 ,6 9 3
4, 840
5 ,2 9 9
95, 580
8 6 f 562
5 ,9 6 4
3 0089?
5 ,2 8 6
4 3 ,4 2 1
4 ,9 6 1
5*933
4 1 ,6 3 2
39 „ 622
6 ,1 1 9
4 ,5 3 3
5,109
3 4 ,8 1 2
26,279
4j 281
11,069
3 ,6 9 0
1 4 ,7 4 2
4 ,5 7 7
4, 375
16, 357
1 1 ,3 3 6
4 ,4 8 9
4j 466
9 7 ,3 7 6
89 , 333
4 ,2 5 8
5 0 ,4 9 1
41, 319
4 ,4 8 4
47, 845
6« 349
5=915
5 1 c802
4 47,179
59 6318
57 j 198
4 9 2 ,6 8 4
$ 1 9 ,6 1 6
2 2 ,0 0 7
$ 8 ?156
2*478
SECURITIES f UflOT 10N
f
(.Minneapolis Only)
Member banks are granted the privilege of depositing se«
curities* which they own, with us for safekeepingo
The securities
are p l a c e d in our vault and we clip maturing coupons, enter them
for colle c t i on and credit proceeds to the owning b a n k 8s account*
No charge is made for this serviceo
and generally appreciated by
out
This privilege is widely used
member hanks who in many cases do
not, have ample p r o tection to keep the securities in their own vaultso
This division also handles all bearer securities h e l d by
us for collateral purposes including securities deposited with us
as C u stodian for the Reconstruction Finance Corporation,,
At the close of 1932 the total t- par value, of such eer
1
curlties held in our custody was #130 57 4 5 ?0 0 0 o
During the first
two months of 1933 this amount was reduced approximately
*6*800*000 and from then on there was a gradual increase with the
total held on December 3 1 p 1S33 amounting to 4163*032*000, re*
oresenting an increase of *52,287*000 during the year,,
The number
of p i e c e s received during 1933 was 6 6 , 0 2 9 ? and number delivered
59,783, indicating an increase of 6*246 in number of pieces held
in our custody*
During the previous year we received 69*594
pieces and delivered 69,554„
The number of coupons cut and entered for collection
or returned to the owning bank during 1933 was 197,147 in com
parison with 200.977 during 1932»
Many issues have defaulted in their interest payments
d u ring the past few years and this adds materially to the cost
of handling,
When coupons are returned unp a i d we attach them to
the respective securities again and send a notice to the owning
b a n k 3 all of which necessitates a considerable amount of w o r k e
,
A statement of securities held at the close of 1933
and 1932 is given below?
1933
1932
Collateral to Yfar Loan Deoosit accounts
§11,.040,900 ? 5,268,200
1
1
" Bills Payable a,nd Rediscounts
589,014
778„725
H
' Reconstr u c t i o n Finance Coro.,
*
19,636*804
7,029,747
Securities h eld for safekeeping?
Uo Sc Government securities
39,151,700 18,098,750
Miscellaneous securities
62,814,575 62,176^118
Pledged securities
49,799.072 37,393,523
Total
$183,032,065^130,745,063
CUhftEMCY AND COIN
Currency receipts from and payments to member and non
m e mber banks during 1933 showed a substantial increase in volume
over the previous y e a r c
The Panicky sentiment which existed for
several weeks prior to the banking holiday in March created a
most unusual demand for currency..
In March the Treasury Depart
ment c a l l e d in all gold and g o l d certificates * federal reserve
notes were paid out in exchange for a considerable portion of the
i
gold received by us..
Our currency operations, therefore, were ex
cept i o nally heavy d u r i n g February and M a r c h *
Heceiots from member and n o n member banks during 1933
amou n t ed to ^185,000,000 at Head Office and #10,000,,000 at Helena
Branch, making a total of *>185,000,000 as compared to 3*160,000,000
received dur i n g 1933.,
The number of bills received and counted at
Head office was 35,663,450 and 1,333,963 at Helena*
During 1933, at Head Office, we made l f620 Payments to
local banks and 21,543 shipments to banks outside the Twin Cities,
the total amounting to •??200,000,000,
ments amounting to £16,000,000*
Helena Branch made 3,319 ship
Total payments to banks in our
district amoun t e d to 4316,000,000 in comparison with £173,000,000
p a i d out during the previous year*
Silver and minor coin received during the year amounted
to i2,394,000 at Head Office and ;;621?000 at the Branch, making a
total of .$3,015,000, which is # 1 3 3,000 less than the 1932 receiots«
There was an increase in the d e m a n d for silver and minor coin over
the p r evious year.
At Head Office we made 6,418 shipments, to
m e m b e r and n o n member banks, amounting to *3,970,000 as compared
to 4,244 shipments amounting to 41,739,000 during 1932.
The Branch
sent out 1,245 shipments amounting to & 7 8 i 5000 in comparison with
967 shipments amounting to *498,000 during the previous year,.
Our stock of silver and minor coin was reduced over
•pS* 000,000 during the y e a r G
At the close of the year we h e l d
*203^800 silver dollars, $224,000 in subsidiary silver and
$135,000 in nickels and cents .
CURRENCY A m
COIN
N U M B E R A N D A M O UNT O F CURRSMOY SHIPMENTS RE C E I V E D FROM AND
SHIPPED TO MFV.
1BER A N D NON- M E MBER B A M S BY MONTHS 1933
" I E nneapoTis*Only 1
CURRENCY RECEIPTS
City Me n'ber Banks
Number
Shipments
Amount
January
February
March
April
May
June
July
August
September
Go tober
November
December
Other Member and
Non-Member Banks
Number
ShiDme: 3
Amount
339
135
361
377
278
301
280
2S4
377
299
270
276
775
513
4,441
2.345
1,670
1,337
1,332
1,122
1,05?
1,203
1,066
842
; 3,186 ,827
1,968 .793
16,646 \250
7.7S9 ,042
5,329 ?135
4,858 ,929
5,070 ,367
4,464 ,596
4,319 ,005
4,915 ,663
3,835 ,938
3,389 [ISO
3,317
Total
I 8,067,593
5,590,700
33,156,039
10,036,562
10,465.387
9;7571193
9;039;037
7.882,763
8,522,312
9,956,385
8,416.570
8«647*430
1119,567,961
17,502
165,483,734
CURRENCY SHIPMENTS
City Member Banks
Number
~
Shipment iL
Amount
Other Member and
Non-Member Banks
Number
Shipments
Amount
136
176
149
123
133
137
117
138
132
134
115
131
Total
$ 9,072,000
>
13,376,200
20,122,043
7,618,856
8,395,494
8,545,016
9,101,000
9,087.000
1 0 ,2 9 2 ;0 0 0
8,925,000
7,937,000
10.689.000
1,149
1,412
2,947
1,534
1,740
1,938
1,676
1,940
2 ?080
1,514
1,492
2/101
9 4,536,285
7,185;014
18,451,227
3,770,443
4,241,002
5*476,352
4,935,676
4,968,641
5,728,404
4,495,893
5,471,052
7,155.499
1,620
January
February
March
April
May
June
July
August
September
October
November
December
$123,160,619
21,523
$76,415,488
COIN RECEIPTS
Member and
Non-Member Banks
Number
Shipments
January
February
March
April
May
June
July
August
September
October
November
December
Total .
230
129
116
173
172
156
181
175
167
144
176
119
1,938
Amount
$
COIN SHIPMENTS
Member and
Hon-Member Banks
Number
Shipments
332,587
181,535
161,550
350,705
195,186
180,483
205;233
202,836
211,252
192,687
170,017
110,076
164
226
679
446
580
703
661
716
679
506
462
596
#2,394,137
6,418
Amount
$
64,065
86,135
433,915
173,002
243,219
313,365
244,801
503,027
301,160
195,612
177,179
235.691
#2,970,171
CURRENCY AND COIN (Continued)
TO5BER AN A O N OP CURRENCY SHIPMENTS RECEIVED FRO A D
D MUT
M N
SHIPPED TO W m R A D NON-?,EM
N
BER BAN BY M N H I § 3 3 .
KS
OTS
(HELENA branch)
CURRENCY RECEIVED FRO
M
COUNTRY M BERS
RM
CITY M BERS
EM
Number
Shipments
January
February
March
A p ril
May
June
Ju ly
August
September
October
November
December
T otals
Amount
76
41
194
159
108
94
88
72
103
87
89
74
$
Number
Shipments
Amount
57
48
86
59
61
64
66
55
58
58
61
76
150 ,7 00
1 1 0 .3 0 0
3 7 6 .3 0 1
1 8 0 ,6 8 0
154 695
1 4 8 ,8 6 7
2 0 0 ,9 7 0
1 6 3 ,3 2 0
1 7 5 ,1 55
1 3 5 ,8 30
1 4 1 ,3 28
216,815
$ 8 ,0 5 5 ,2 8 8
1 ,1 8 5
602,801
202,212
2 ,7 8 7 ,0 6 2
8 2 4 ,6 5 5
4 6 1 ,9 6 5
4 5 7 ,6 2 9
5 31 ,3 1 0
5 0 6 ,6 1 6
541 ,8 5 4
3 7 3 ,8 6 1
4 0 0 ,4 3 9
36 4 ,8 8 4
749
§ 2 ,1 5 4 ,9 6 1
CURRENCY SHIPMENTS TO
M BERS
EM
Number
Shipments
January
February
March
A p ril
May
June
Ju ly
August
September
October
Novombor
December
T o tals
116
137
298
137
200
NON-M BERS
EM
Amount
$
611,750
1,241,625
3,632,905
435,550
734,150
639,395
929,350
Number
Shipments
35
48
113
51
68
239
953,800
1,024,700
1,132,550
1,363,050
76
70
118
84
81
71
84
2,420
$13,566,325
899
199
206
190
254
222
222
868,000
Amount
3
135,158
187,080
439,662
112,355
193,308
190,507
215,650
286,550
205,358
212,110
238,973
200,557
§2,617,268
CURRENCY RECEIPTS FRO A D SHIPMENTS TO M BER A D NO EM
M N
EM
N
N-M BER BA KS
N
I I H S apolis and h e l e m "3M W ?T~~
Year
R eceipts From
Year
SHIPMENTS TO
1933
1932
1931
1930
1929
1928
1927
1926
$ 1 9 5 ,2 6 1 ,9 4 4
- 1 6 0 ,1 8 8 ,4 3 0
1 8 3 ,7 6 4 ,7 1 1
224,94-4,375
2 2 8 ,0 9 9 ,8 0 9
2 0 2 ,6 2 4 ,8 6 4
1 9 8 ,1 0 6 ,3 5 4
1 8 9 ,6 5 6 ,4 4 5
1933
1932
1931
1930
1929
1928
1927
1926
$215,760,200
176,481,466
191,685,014
199,027,983
197,833,047
189,412,600
192,056,012
187,073,578
62
FEDERAL RESERVE NOTES
*
The increase in our Federal reserve note circulation
du r i n g 1933 w a s *11*930,000 compared to increases of |>15,571g000
in 1931 and & 1 1 5 8 3 ? ,000 in 1 9 3 2 0
,
To this expansion of 4 3 9 g3 3 8 ?000
during the past three years must be added
718,000 of bank notes
pl a c e d in circulation during recent months, making a total of
#47^055,000 in our notes placed in the District since January 1,
1931»
Aoart from the immense amount of m o n e y shioped just before
the b a n k i n g holiday and immediately after, there h a s been no un
usual demando
On March 13 the amount of our notes in circulation
reached the peak of $119,587,000*
After contracting $11,000,000
in the first week the reduction w a s made more gradual, the net
retirement at the end of a month being $ 3 0 , 0 0 0 ?000•
Just h o w much our issues during 1933 represent the needs
of b u s i n e s s may not be estimated*
v»e do know that during the year
we received gold coin and certificates to the amount of $15*400,000
and h a d paid out in January and February # 3 , 5 0 0 p000o
We must thus
deduct from the $19 ,648,000 of increased circulation, $13,900,000
of gold added to our holdings®
The net exp a n s i o n of £6,748,000,
no doubt, does not represent the added supply of money made avail
able to our District because greater amounts of small bills and
coin have b e e n paid out than last year and some National b a n k s have
a d ded further to their circulation.:.
The total amount issued to the Bank by the Agent during
the year ^as £81,665,000 and the largest amount ever issued in
one year*
Of this amount $47,775,000 was issued during February
and Marcho
The issue for the balance of the year was less than in
ei ther 1931 or 1932*
Previously, the greatest amount issued in
one year was during 1929 w h e n the total reached £ 7 3 , 7 5 4 f000 and
w a s the result of retiring the old series larger size Federal re
serve noteSo
The issue of notes by the Agent has not always been
a reflection of public demand because there have been oeriods when
we daily retired notes to improve our reserve position and then
took n otes from the Agent the following day u
Since b e i n g permitted
to pledge Government bonds as collateral to note issues* frequent
FJEDSRAL KESEhVE NOTSS
(Contd)
retirements of notes have been u n n e c e s s a r y •
The improvement in our reserves through pledging United
States securities also made possible the carrying of more notes in
the cash*
Our ability to carry more of our notes in the Branch
cash figures made possible the elimination of any representative
for the Agent at Helena, thereby reducing the note issuing ex
pense,
7/hen the bank i n g crisis was developing, the Branch was
authorized to carry up to #6,000,000 in cash*
several months ago
this p r ivilege was reduced to <*3,000,000 and the amount carried
is usually nearer #2,500,000o
After the retirement of the major portion of the old
series notes in 1929 and 1 9 3 0 ? it was assumed the destruction of
notes would b e materially lessened for several years*
During 1929
and 1930 the amount destroyed was ^98,353,000 with $39,490,000
the total for the next two years*
The destruction schedule for
1933 amounted to #33,360,000 and would have been less but for the
fact that we cancelled approximately $1,000,000 in large bills
at Helena rather than pay the shipping costs and surcharges to
Minneapolis0
However, the greater activity in our circulation
than one year ago is good evidence that more of our notes will be
destroyed in 1934 than for several yearso
Fifty per cent more
notes were destroyed during the past six months than during the
first half of 1933<»
More large bills were placed in circulation during the
past year than ever before*.
Practically all of this demand was
during the first three months*
high e r is $ 1 , 8 0 0 , 0 0 0 o
'
1 0 9s and 2 0 8s«
The net g a i n for bills of #50 and
There w a s a gain of £13,100,000 in 5*s,
The smaller denominations contribute 81 Per cent
of our total outstanding notes with 2 0 ,i supplying 39*2 per cent
:s
of the total i s s u e .
On December 31, 1933 the Agent h eld $ 7 9 , 3 3 0 , 0 0 0 in
our Federal reserve n otes .
At Washington there was a stock of
^ 1 3 0 , 100,000 printed and paid fore
Orders for printing held at
W a s hington call for $ 2 6 , 4 0 0 , 0 0 0 in 1 0 8s and 2 0 3s which will, no
doubt „ be completed before June 30, 1934,
This will p/ive
FKDSHAL nESCKVE NQT&S
(Contd)
4117 , 0 0 0 ,000 in smaller denominations and #108,820,000 in larger
denominations*,
We need give no thought to the printing of large
bills for years to come and under normal conditions there are
enough smaller bills to last several years<>
In addition to the
Federal reserve n o t e s , w e have ij>34,lS09000 in bank notes at
W a s h i n g t on and $ 5 , 3 4 0 g000 at Minneapolis*,
Of this amount, bills
of the #50 and $100 denominations make up #21,000,000 of the
totalo
When we are requested b y the Board to give further
pr i n t i n g orders for Federal reserve notes, we should limit these
orders to a reasonably small amount of $5 and #10 notes becaus e
the supply of other denominations is a m p l e «
Under the arrangement made at the last Governors*
c o n f e r e n c e , the Federal reserve banks will pay out an amount of
b a n k notes equal to 10j& of the reserve note circulation*
Our
percentage exceeds that of m o s t of the other banks and we hope
we will not need to issue over $8,000,000,,
This will entail a
tax of $40,000 in 1934„
6 5
FEDERAL RESE R V E NOTES RE C E I V E D A N D ISSUED BY AGENT DURING 1933
IN HANDS OF AGENT DECEMBER 31. 1933
NSW
FIT-FGR-USE
Fives
$ 3,320,000
Tens
5 , 8 4 0 j000
Twonti ee
8.640.000
Fifties
11600.000
Hundreds
3, 350,000
Five Hundreds
570,000
Thousands
1,170,000
Total
#21,3967666
TOTAL
3.770.000
7.370.000
8.060.000
3.060.000
3.360.000
'720,000
1 e5 30.000
W ^ W o too6
$
450,000
1.530.000
1.420.000
460.000
1.110.000
150.000
3601000
1 5,480,000
RECEI V E D FROM
C OMPTROLLER
NEW
TOTAL
RECEIVED
R E T U R N E D BY
B ANK
_
FIT-FOR~UBg
$ 5,005,000
10.450.000
11.400.000
3.985.000
8.095.000
1.365.000
3.075.000
W k %t $ , q o o
$14j600 , 000
Fives
15.000.000
Tens
17.040.000
Twenties
14.800.000
Fifties
16.000.000
Hundreds
Five Hundr e ds 6,900,000
Thousands
6*400,000
To tal
$19,605 ,000
25,450 , 000
28,440 ,000
1 8 s785 ,000
24,095 ,000
8,265 ,000
9.475 000
Toro
ISSUED TO BANK
NEW
TOTAL
FIT-FOR-USS
$ 9,980,000
Fives
12.560.000
Tens
13.040.000
Twenties
4,000,000
Fifties
8,350,000
Hundreds
Five H u n d r e ds 1,370,000
Thousands
2,170,000
Total
| 51 370,000
$ 5,455,000
11,980,000
8.400.000
850.000
1.805.000
405.000
1.500.000
$30,395,000
$ 15,435,000
24.540.000
21.440.000
4 .850.000
10.055.000
1.675.000
3 k670,000
4
IN HANDS OF AGENT DECEM B E R 31. 1933
FIT-F0R-U8E
$ 7,940,000
Fives
8,280,000
Tens
10.640.000
Twenties
13.400.000
Fifties
10,000,000
Hundreds
Five Hundreds 6,200,000
Thousands
5,400,000
Total
1 6 6 7865^555
TOTAL
6
NEW
7.940.000
8 r380,000
15.060.000
15.995.000
17.400.000
LY ,<*UU,UUU
7,310,000
7.310.000
?;335.000
335.000
320,065
0
4.420.000
3.595.000
7.400.000
1.110.000
1 ,935,000
18,46®,060
R A T I O OF ISSUE BY DENOMINATIONS
£ iV 88
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands
1933
15VSUJ6
30.05
2 6 0 26
5»94
13.31
3o05
4 o49
1 0 0 o0%
1932
verrsf*
30 a09
32*81
3.46
13«59
Xc 29
3 c63
1 0 0 00%
1931
15779)5
36,87
34 c00
2o 98
7,80
1.10
2*46
1 0 0 .o£
1930
15TBit
29,91
42*82
3.58
4o99
3,63 •
4ol6
1 0 0 .oi
1929
3^:b t
34.9
33 ol
1 .6
3 =3
03
*5
1938
ZEZTfo
35c7
30 09
1.6
3o 1
.3
.3
1 0 0 .Oi
1 0 0 oOl
FEDERAL RESERVE NOTES ISSUED TO BANK
COMPARATIVE BY MONTHS 1933-1929
1933
January
February
March
April
&ay
June
July
August
September
October
November
December
Total for
Year
1931
1932
4 3,980,000
12,590,000
35,185,000
1,680,000
1,170,000
2,160,000
4,790,000
4,100,000
7,205,000
1,940,000
1,700,000
5,165,000
4
% 81,665,000
% 55,905,000
5,580*000
3,258,500
4,210,000
7,340,000
7,830,000
4,735,000
7,260,000
2,070,000
4,160,000
3,010,000
2,200,000
4,251,500
1930
1929
1,150,000
750,000
1,940,000
2,000,000
1,765,000
2,315,000
3,465,000
4,245,000
5,130,000
7,815.000
4,235,000
7,370,000
4 1,590,000
8,812,000
3,700,000
3,500,000
1,050,000
1,350,000
900,000
2,840,000
4,085,000
2,075,000
2,300,000
7,050,000
4 2,540,000
2,610,000
5,835,000
2,260,000
3,780,000
1,560,000
8,165,000
9,410,000
8,775,000
17,275,000
4,329,000
7,215,000
$ 42,180,000
$ 39,052,000
I 73,754,000
*
FEDERAL RESERVE NOTES DESTROYED AT
WASHINGTON
COMPARATIVE BY MONTHS 1933-1929.
1932
1933
January
February
March
April
May
June
July
August
September
October
November
December
Totalt for
Year
%
1.763,650
1,178,300
1,107,100
1,540,410
2,451,100
1,513,050
1,990,250
2,769,400
1,854,350
2,598,500
2,463,800
2,129,550
# 23,359,460
$
1930
1931
1,636,550
1,189,000
1,569,950
1,447,345
2,025,050
1,419,260
1,579,850
1,970,500
1,511,500
2,281,500
1,671,150
1,593,175
4 2,363,350
1,436,000
1,756,985
1,530,100
1,567,750
1,173,600
1,863,500
1,426,350
1,549,100
1,494,850
1,905,160
1,529,250
4
$ 3.9,694,830
$ 19,595,995
$ 43,217,265
5,345,100
11,453,015
4,187,800
4,535,250
3,296,750
1,953,550
2,987,100
1,928,100
1,724,900
2,615,200
1,687,100
1,505,400
FEDERAL RESERVE NOTES ISSUED AND
IMTROYED SINCE ORGANIZATION "
Issued
to Bank
1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933
$360,000
13,742,000
9,380,000
42,230,000
57,140#000
39,590,000
39,450,000
39,265,000
43,360,000
40,205,000
52,030,000
44,330,500
46,702,000
36,694,500
40,015*,000
73,754,000
39,052,000
42,180,000
55,905,000
81,665,000
TOTAL
§837,850,000
Destroyed at
Washington
$
$
^
895,955
3,988,095
9,421,540
36,771,805
40,706,785
49,748,580
32,784,520
27,320,330
28,173,395
30,108,355
31,835,950
23,970,335
28,808,035
55,134,950
43,217,265
19,595,995
19,894,830
23,359,460
| 508,795,980
1929
•
3,435,600
2,037,350
2,421,850
1,974,250
2,929,250
1,189,000
3,251,250
5,783*050
4,512,750
17,559,900
5,354,700
4,686,000
# 55,134,950
ISSUE, REISSUE AND DESTRUCTION OF FEDERAL RESERVE NOTES
SINCE OPENING OF BANK AS OF DECEMBER 31, 1933.
Received From
Controller
$186,000,000
EOS,760,000
201,040,000
27,800*000
41,200,000.
10,900,000
13,200,000
$225, 535,000
#231,270,000
$917,170,000
New
Fit-For~Usa
Total
$178,060,000
197,480,000
190,400,000
15,400,000
31,200,000
4,700,000
7,800,000
$ 39,535,000
76,150,000
74,140,000
6,015,000
9,685,000
1,770,000
5,515,000
$217,595,000
273,630,000
264,540,000
21,415,000
40,885.000
6,470,000
13,315,000
0625,040,000
Total
$ 39,535,000
76,150,000
78,560,000
9,610,000
17,085,000
2,465,000
7,865,000
$685,900,000
Fives
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands
Returned To
Agent by Bank
$212,810,000
$837,850,000
Total
281,910,000
279,600,000
37,410,000
58,285,000
13,365,000
21,065,000
ISSUED TO BANK
Fives
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands
Total
DESTROYED AT WASHINGTON
Returned
Returned By Returned By
Treasurer Minneapolis
$7,880,000
$ 71,613,230
76,496,340
76,689,300
3,462,150
5,458,500
653.000
999.000
^164,912,180
169,687,610
147,504,940
8,632,550
12,884,200
2,184,500
2,990,000
(315,580,160 $249,964,300
$235,371,520
$508,795,980
In Hands of
Agent
December 31, 1933.
Fives
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands
Total
Total
84,756,500
85.332.000
65.182.000
4.735.000
6,669,800
1.444.000
1.845.000
f>4,280,000 I 4,282,450
Fives
2.545.000
6,314,270
Tens
4,613,640
1.020.000
Twenties
410,400
25.000
Fifties
30.000
725,900
Hundreds
87,500
Five Hundreds
146,000
Thousands
Total
Returned By Other
Fed. Res. Baraks
Outstanding
December 31, 1933
f 7,940,000
p
8,280,000
15,060,000
15,995,000
17,400,000
7,310,000
7,335,000
#13,147,820
27,792,390
38,475,060
3,172,450
10,915,800
1,405,*500
2,875,000
§79,320,000
£97,784,020
RESEKV& POSITION
Since March 1932 our reserve percentage has never
fallen b e l o w 50$ of circulation and deoosits combined and only once
duri n g the past six months has the reserve gone below 60$ o
Fluctu
ations in percentage have been small with the high not exceeding
65$ until December 31 when the ratio was 66*7 per cento
In way 1933 our reserves first showed the result of im
portant changes *
Acceptances held were reduced nearly ^7,000,000
as well as reductions in other discounted paper.
There was some
increase in holdings of Governments but net earning assets were
reduced *>8,300,000 during that month.,
A further improvement re
sulted from other classes of money being permitted as reserve *
Begi n n i n g on May 18 all silver and minor coin and all bank notes,
other than our own, have been included in our reserves.
Further improvement has also resulted through the steady
increase in deposits-
During iiarch some of the larger banks had
increased their normal balances upwards of - 12,000,000 by trans
j
j
fers from Eastern c ^ r r e s p o n d e n t s «
In April balances were reduced
.8 f000,000 but have shown consistent gains each month since reach
ing a total of *66,295,000 on December 31*
At the end of Aoril we
had total deposits of .>44,178,000, earning assets of $71,663,000
and reserves of *-73,061*0000
At the close of the year the deposits
had thus shown a gain of $23,117,000, the earning* assets had been
r edu c e d $855,000 and the reserves expanded to a total of
^106,256;000o
of the year
A t t ention is drawn to the fact that on the last day
6,000,000 was transferred through the Gold Settlement
F und for payments to be made on account of the Reconstruction
Finance Corporation*
These payments were not disbursed until after
the close of the year*
Member ba n k s h a d also brought in t 5,000?000
i
m ore from other districts than paid out so our Gold Funds were
abno r m a l l y e x p a n d e d «
Although the reserves have decreased since December
31 the total has remained in excess of .^100,000,000 and our de
posits were ^3,000,000 higher on January 10* 1934 than on
December 31, 1933*
With payment of interest prohibited on demand
RES Eh VIC POSITION
(Contd)
deposits* the accumulation of balances with correspondents, beyond
normal requirements, is unnecessary*
The fact that frequent re
quests to deposit funds with us are made by non^member banks bears
out this reason for a large portion of the gain*
Twenty-five n o n
m e mber b an k s had clearing accounts with us on December 31 agg r e
gating <jl, 036 j 000 c
j>
The Treasurer of the United states has mai n
tained a somewhat lower balance with us of late otherwise a still
greater gain would be s h o w n 0
Comparative figures giving deposits
by months, years and States in recent years appear on the follow
ing sheeto
It will be recalled that on May 5, 1932 we we r e instruct
ed to pledge sufficient Government bonds with the Agent to provide
a w o r k i n g balance of #10,000,000 in free goldo
the free balance was raised to #15,000,000c
In March this year
Frequently large trans
fers cause us to withd r a w bonds held b y the A g e n t as collateral and
substitute gold to keep within the limit p r e s c r i b e d >
This will
account for most of the increase in the A g e n t ’ gold h o l d i n g in
s
December
On December 31 the Agent h e l d .^46,500,000 in g o l d at
W a s hington and
29,7 54,000 at Minneapolis*
He also h e l d in Ne w York
or at Minneapolis £>19,5 0 0 s000 of Governments securing Federal re
serve notes and ‘
?10?0 0 0 ?000 securing our ba n k n o t e s «
GO L D HOLDI N G S O F THE BANK AND FEDERAL
R ESERVE AGENT AT THE CLOSE OF BUSINESS DECEMBER 31,
i§33. AS COMPARED TO D E C E&BER 31. 1932.
Gold Bullion
Gold Coin
Gold C ertificates
Gold Settlement Fund
Gold R e d emption Fund
Total Gold Held by
1933
627255*45
364,705*00
123,000*00
19,517^98^41
1.61 2 . 3 5 7 076
5'Si,'S80f116*63
$
Bank
1932
9 l 7 ^ 092
470,335,00
1,778., 200,, 00
7 , 7 9 7 ?422,76
2,313.507,13
J 1 & ,*351,093*81
#
HELD BY A GENT
1933
1932
Gold C.oin
*11,42570^0*00
f 5,475‘
c
,ODO’
‘ oOO
Gold Certificates
18*329,000,,00
8*065,000.00
Gold with Fo R 0 Board
4 6 . 500^000*00
3 8 « 0 0 0 0000,00
Total Gold with F.K,Agent|?6,354,000*00
§41 , 5 4 0 ’
000• 00
Combined Gold Holdings
Other Reserve Cash
Total Cash Reserves
^97,9 3 4 , 1 1 6 c 62
8 , 3 2 1 , 586c79
#106,255,Y03Y'4T
£53,891,093*81
5«103,9330 00
#58,995,026«81
DAILY AVERAGE MEMBER BANK RESERVE BALANCE BY MONTHS
I.'inneapolis and Kelena, Combined
1932
1933
January
February
March
April
May
June
July
August
September
October
November
December
$ 42,851,000
41.378.000
41.466.000
41.396.000
40.509.000
41.564.000
39.524.000
38.930.000
38.419.000
37.759.000
38.399.000
38.992.000
33.277.000
43.062.000
41.026.000
39.987.000
41.103.000
44.526.000
52.311.000
51.903.000
52.110.000
52.331.000
54.673.000
56.921.000
Daily Average Member Bank Balances,Minneapolis and Helena 1933
$
»«
1
1
«
«
«
»»
»«
»
♦
»
»
«
“
«»
M«
»
«
«
»
""
"M
“
r
t
»
»
«"
47,306,000
193240,094,000
193148,050,000
193051,225,000
192952,562,000
MEMBER B A M RESERVE BALANCE FLUCTUATIONS
HIGH
Minneapolis Only Dec, 30, 1933 $55,581,915
Felena Only
Dec* 19, 1933 7,794,261
Combined
Dec. 30, 1933 63,026,791
Combined
Jan. 5, 1932 46,179,659
Minneapolis Only War. 9, 1933 $29,916,761
Helena Only
Mar.13, 1933
4,216,556
Combined
Mar. 9, 1933 35,223,846
Combined
Oct.18, 1932 35,221,495
COMPARISON OF MEMBER AMD NOH-HE^SR B A M BALANCES
AS OF DECEMBER 31. 1933-1932-1931-1930-1929
(Thousands only 000 omitted)
Michigan
Minnesota
Montana
$o« Dakota
So« Dakota
Wisconsin
1933
$ 3,635
43,404
7,160
3,398
3,613
3.120
$ 64,330
1932
$ 2,019
23,289
5,521
2,175
2,490
2.266
$ 37,760
1931
$ 2,500
30,162
5,587
2,807
2,955
1,816
£ 45,827
1930
$ 2,672
30,616
5, 808
3,503
3,629
2,219
& 48,447
1929
§ 2,743
36, 651
7,354
3,794
3,998
2,321
i 56,861
DEFICIENT RESERVE PENALTIES
Total penalties for 1933
Number of Banks Penalised
Maximum Penalty Rate
Minneapolis
1933
I 6,936.90
226
rielena
1933
4 1,079 *67
38
Combined
1933
$ 8,016e57
264
Combined
1932
$ 17,219.16
TRANSFER A N D CODING DE^AhTaENTb
(Minneapolis O n l y )
The volume of transfers hand l e d during 1933 increased
in number and amount as compared to 1932c
iXiring 1933 this de~
partment handled 4 5 g434 transfers totaling
,1,763,422?000 and in
1932 39,316 transactions amounting to vl,618,6 9 S , 000.. an increase
of 5,618 transfers for ^ 1 4 4 ?7 2 3 ;000,
Transfers other than for the Five Fer Cent Redemptio n
Fund of National Banks increased 6,702 and *144,715,000 in amount^
b e ing 35,172 transfers totaling ;,1,754,105,000 in 1933 and 28,470
transactions amounting to ^1,609,390*000 in 1932,
Five Per Cent Redemption Fund transfers handled for
National banks during 1933 were 1 0 2262 in number and £9, 317,000
in amount*
In 1932 there were 11*143 transactions totaling
■ ,306,000«
3
The number and amount of incoming and outgoing wire
transfers handled by this d e p a rtment for the years 1931 through
1933 follows?
Year
1933
1932
1931
Outgoing '.Vire Transfers
Number
Amount
6,184
7,424
8,493
420 ,027,000
413,578,000
61?,696,000
Incoming A ire Tra n s f e r s
Numbe r
"
A m o unt
9,461
10,567
13,110
* 967,900,000
824,915,000
1,286,525,000
Messages coded and decoded during 1933 other than trans
fers were 19.016 and in 1932 17,990, an increase of 1,012 messages.
TELEGRAPH UNIT
(Minneapolis Only)
During 1933 the number of words sent over the private wire
from this office was 5 7 3 s197, an increase of 99,211 words over 1932
with 4 7 3 ,986 w o r d s *
The banking holiday was the main cause of the
large increase in words sent.
The increased activity of the Re
c o n s t r u c tion Finance Corporation contributed also to the large in
crease in words sent*
Information furnished the Federal Reserve
Board over the private wire also increased during 1933 as compared
to 1 9 3 3 o
AUDIT I N G
Audits of the various operating departments of the bank
are cond u cted at periodic intervalSo
Controls are m a i n t a i n e d on earn
ing assets and all income is proved and checked to the earning accounts
on the bank's general l e d g e r 0
to the expense a c c o u n t 0
Expense items are checked and proved
Receipts are obtained for all outgoing ship
ments of cash and securitiesc
Vith respect to incoming shipments,
member banks are requested to send an advice under separate cover
direct to this departmento
These advices are recorded a n d followed
u p to see that proper credit is g i v e n for all cash shipped to us?
security shipments are checked to the point of receipt by the operat
ing departmentso
A duplicate record of securities deposited with us
for safekeeping or for collateral purposes is maintained and any
changes in the accounts are verified with the custody d e p a r t m e n t s
records da.ily0
All requests received from examiners or other super
vising authorities for verification of lists of notes or securities
held in our custody, reconcilement o ~ accounts., e t c * , are handl e d b y
the auditing department*
Member and non-member bank accounts are
reconciled monthly and any exceptions shown are followed up for proper
adjustment*
All transactions in cash and securities deposited in or
wi t h d r a w n from the vault are checked b y a member of the auditing de
partment, except such cash or securities as m a y be held under the
immediate control of certain tellers*,
Reports covering periodic audits of the operating depart
ments are rendered to the C o n t r o l l e r *
Any suggestions for improve
ment or changes in the operating methods or procedure are likewise
referred to him for h i s approval and d i r e c t i o n 0
All r e q uests for
purchases of equipment or supplies are placed on requisition slips,
signed by the officer in charge and then referred to the C o n t r o l l e r «
lio purchase is authorized until the need is established and price
considered satisfactory*,
The stock of supplies is also verifie d at
intervals by the Au d i t i n g D e p a r t m e n t s
During 1933 two examinations of Helena Branch were made
under the supervision of head office C o n t r o l l e r *
Audits conducted during the past year did not disclose any
irregularities or defalcations and the bank*s records appear to re
flect its true condition*
BANK
EXAMINATION
DEPARTMENT
A N N U A L REPORT - 1933
A t least one examination or credit investigation of all state
member banks in the Ninth Federal Re serve District was made during 1933 by
examiners from this d e p a r t m e n t . Oar examiners also made sixty-one examina
tions of state banks for membership in the Federal Keserve System*
The
examinations a n d credit investigations by this department in the various
states were as follows:
•
M i c h i g a n ............
M i n n e s o t a .........
Montana . . » « * •
Bouth Dakota . . . »
Yvisconsin . . „ . •
Total . ,
state Banks.
10
30
3 j*
33
4
10S
At the request of the Federal Keserve Board, our examiners co
operated with examiners employed by the R.F.G., and representatives of the
F.D.I.C., in connection with investigations of nonmeraber banks in all states
in this district for the purpose of estimating what aid, if any, such n o n
member b anks w o u l d require in order to qualify in the Temporary Insurance
f u n d , In p e r f orming this work, our examiners put in time as listed b e l o w
at the points s t a t e d . Salaries of examiners and their expenses were paid
by the Federal Reserve Bank.
He C« Jones., at Madison. Wisconsin, 25 days;
Wo Jo Stutsman, at Helena, Montana, 14 1/3 days;
Ao JVn Mills, at Pierre, Sioux Falls, and Aberdeen
S outh'Dakota,21 days;
John Carlander, at St* Paul, 10 days, and at Sioux Falls
and Aberdeen, south Dakota, 1 6 "days;
Geo. H. Norum, at Bismarck, North Dakota, 11 days, and at
Sioux Falls, South Dakota, 14 days;
Jo Be Johnson, Northern Peninsula of Michigan, 10 days*
Summary of Credit Investigations, Examinations, and special Visits
Examiner
H.Do Sharratt
H.Co Jones
’
VoJ. Stutsman
A.W. Mills
.
.
*
.
.
. «
* •
. o
. •
Assistant Examiner
J.B. Johnson . . .
J ohn Carlander. . *
Geo* Ho N orum . . «
Ho Ray Horn . . . •
Lo H. B a k k e n . . a
C. Jo Larson
. . •
Total . , . «
Trust Examiner
To H« Hodg s o n . .
Examined
for Member Credit In
ship
vestigations
19
19
12
12
7
23
1
1
3
2
1
3
2
-
-
1
61
3
47
_
Special
Visits
8
5
7
3
Assisted
2
19
5
11
4
6
1
2
36
2
12
8
8
-
1
11
77
Miles
Traveled
IS,§15
16,920
13,600
6,400
5,280
7,230
4,850
5,080
» ^O w *
2,413
Sts,te Bank Applications for Membership - 1933
During 1933, 85 aoplications were received from state banks in
this district for membership in the Federal Reserve System.
Sixty of these
b a n k s were examined b y examiners from this department.
One bank was ac
cepted on the examination report of the state banking authorities.
Four
b a n k s are to be examined in the near future.
Status of Applications for Membership Received During 1933
State banks admitted to m e m b e r s h i p ................... .. „ 38
A p p l i cations in the hands of Federal Reserve Board
p ending action . . . . . . . . .
.....................
1
Applications approved, but conditions of membership
not yet accepted by applicant bank ................. . 1 1
A pplications held in abeyance in this office for
additional legal papers. . . . . . . . . . . . . . .
7
A pplications held in suspense pending increase in
capital stock or elimination of criticised assets. * 9
A oplications wit h d r a w n by the applicant banks. . . . . .
5
Appl i c ati ons pending examination by this department. • , 4
T o t a l ............................. .. ..................... 65
OFFICE WORK
R eports of Examination of National Banks
Number of reports received from the Chief National Bank E x a m i n e r 16
Office . . . . 806. (The cost of these reports aggregated $8,060»00
for the c alendar year,)
88 d uplicate copies of the reports of examination of Montana national
banks w ere received from the Chief Examiner's Office, and the cost of
these additional copies aggregated $431-35 for the year*
All of the oriticisable oaper contained in the reports of examination of
b a n k 8 that borrow, with the exception of Montana banks, was listed for the
disc o u n t d e p a r t m e n t 0
Reports of Examination of State Member Banks
Number of reports of examination received from the various State Banking
Departments in the Ninth District of state member banks examined independently by them w a s as follows;
Number
State
of reports
Cost
Michigan
3
$ ST~T3
Montana . . . . . . .
2
lOoOO
Reports of evil credit investigations and examinations made by
examiners for the Federal Reserve Bank of banks in the Ninth District were
typewritten in this offloe. One copy was retained for our files, one copy
sent to the bank examined, and one copy forwarded to the t-tate Banking
Departmentc
One copy was also forwarded to the Helena Branch on all state
member banks in Montana* Analyses of reports of examination of all state
member banks made either by examiners for the Federal Reserve Bank or
examiners from state Departments were made on the revised forms N o »312
furnished by the Federal Reserve Boards
These analysis forms set forth
important facts and figures pertaining to the condition of the bank; also
much general information, and conclxide with a recommendation as to what
action, if any, should be taken by the Federal Resefve Board, together
with the reasons thsrefor, which recommendations are made by the Federal
Reserve Agent and concurred in by the G o v e r n o r .
In connection with applications of state banks for membersh i p
in the Federal Reserve System, one copy of the e x a m i n e r ’ report is for
s
w a r d e d to the Federal Reserve Board, together with all legal papers in
c o n n ec t i o n with the organization or reorganization of the applicant bank
The Federal Reserve Board is also furnished, in each instance, with a
complete m e morandum covering the organisation, management, location, and
cond i t i o n of the applying bank»
Alphabetical lists of all criticised paper contained in the
examination reports of all state b a n k s , with the exception of Montana
banks, were mad® for the discount department*
All examination reports, both state and national, k n d reports of
credit investigations we r e analyzed on comparative analysis s h e e t s , one
copy b e i n g furnished Governor Geery, one copy to Deputy Governor Yaeger,
and one to Deputy Governor Ziemer*
These sheets contain a general state
ment as to the condition of the bank; also a brief summary of the
examiner*s conclusions.. Ratio and percentage analyses were also made
and written u p on cards filed in the A g e n t ’ Office, which indicate the
s
progress made by each bank as shown by*"successive examinationso
These
ratio cards set forth by a percentage of capital stock a n d surplus
'Degree of s o l v e n c y ” “
‘
, Credit P o l i c y ’ and “
*,
Miscellaneous Administrative
F a c t s ” and the situation as to liquidity by a percentage of various
,
asset a ccounts as to total depositsWhen state member banks ??ere shown by reports of examination to
be in an unsafe or unsatisfactory condition, special letters were wr i t t e n
either to the bank or to the State Superintendent of Banks, calling at
tention to the unsatisfactory and criticised matters, with a request or
direction that corrective action be taken*
Re p orts of Earnings and Dividends a n d Reports of Condition
Ap proximately 2,435 repo r t s ” earnings and dividends and re
of
ports of condition were received, checked and recorded*
Applications for p e r m ission to exercise fiduciary powers approved, e t c c
The following applications for permission to exercise f i d u c i a r y
powers were approved by the Federal Reserve Board d\iring 1933 s
Date
Name of Sank
Location
Approved
Capital P o w e r s
Northwestern National Bank Minneapolis, Minn* 10-28-33** $5,000,000 FullFirst National Bank in
Grand Forks,. N,D.
11-24-33
350*000 Full
(**) Effective upon merger with M i n nesota Loan & Trust CompanyThe following application for permission to exercise fiduciary
powers was f orwarded to the Federal Reserve Board, but advice as to the
B o a r d ’ action has not yet be e n received:
s
Marquette National Bank
Minneapolis, Minn,
-
$ 300,000
Full
One h u n d r e d ten 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 banking institutions under the Clayton Act,
were r eceived and approved by the Federal Reserve Board during 1 9 3 3 c
beven applications made by banks in the Ninth District for voting
permits were received during the year and were forwarded to the Federal
Reserve Board for a p p r o v a l e
One h u n d r e d five applications affecting the stockholdings of
member banks in the Federal Reserve Bank wesre received a n d approved during
the year*
Ap p l i c a t i o n s for Rational Charters
Total numb er o f a p p l i e ations referred to this office for
r e c ommendation ........................................................3 2
(Of these, ? were granted charters by the Comptroller of
the Currency, 3 were refused charters, and the organiza
tion was incomplete as to 2 2 on December 3 1 , 1 9 3 3 c )
Re p o r t s to Federal Reserve Board on changes in b a n k s 1 status
Weekly reports are forwarded to the Federal R e s e r v e ’
Board show
ing changes in the status of all state and national b a n k s in the district*
BANK CHANGES IN 1S33
556
7
28
59!'
Total number of member banks in the district J a n u a r y 1 ? 1933
N e w national b an k s organized ................................. „
State banks a d m i t t e d ..................... .................. .. .
National banks absorbed by nonmember state institutions
National banks absorbed by other national banks* . . . . .
National b anks succeeded by nonmember state institutions .
National b anks succeeded by other national banks ..........
National banks liquidated ....................................
State member banks consolidated with nonmember institutions
State member b anks converted to national bank . . . . . .
State member bank withdrawals
...............................
State member banks suspended . . . ..........................
Total n u mber of member banks at the end of the year
. .
(per stock book records)
1
1
4
Z
32
1
1
5
3
Membership
At the close of the year, there were 551 member banks in this
district, as compared w i t h 556 member banks at the beginning of the y e a r 0
There was a net loss of 23 national banks a n d a net gain of 18 state banks
The total m e m b e rship at the close of 1S33 was divided into 491 national
ba nks a n d 60 state banks.
Stock in the Federal Reserve Bank issued fco New Member Banks
Name of Bank
The First National Bank at Hubbell
The First National Bank in Cannon Falls
Security State Bank of Cannon Falls
First State Bank of Chatfield
Dakota State Bank
State Bank of Gibbon
Security State Bank of Houston
The Citizens National Bank of Madelia
The Citizens National Bank of Park Rapids
Citizens State Bank of
Farmers & Merchants State Bank of Springfield
State Bank of Springfield
W a d e n a County State Bank
First State Bank of Wykoff
The Farmers National Bank in Chinook
Farmers State Bank of Denton
Fa rmers-Stockgrowers Bank
M o n t a n a Bank & Trust Company
R o n a n State Bank
State Bank of Terry
Farmers State Bank
First National Bank in Grand Forks
State Bank of Alceeter
Bank of A l pena
Citizens State Bank of
Belvidere State Bank
Me r c h a n t s State Bank
Ha n d County state Bank
Farmers & Merchants State Bank
Je r a u l d County Bank
Farmers State Bank
Bear Butte Valley Bank
Sanborn County Bank of
The Union National Bank of Ashland
Peoples State Bank
No.of Shares
Subscribed
Location
Hubbe1I, M i o h .
33
44
Cannon Falls, Minn
18
Cannon Falls, Minn
18
Chatfield. Minno
22
Dakota, Minno
22
Gibbon, Minn.
Houston, Minn*
20
36
Madelia, Minno
18
Park Ha.pids, Minn*
19
Sto Charles, Minn*
29
Springfield, Minn.
Springfield, Minno
36
34
Wadena, Minn,.
18
Wykoff, Miniio
Chinook, M o n t e
33
17
Denton, M o n t „
Glasgow, Mont.
33
75
Great Falls, Monte
Konan, Mont.
17
48
Terry, Mont*
24
Victor, Monto
180
Grand Forks, N.D»
24
Alcester, S . D 0
18
Alpena, ScD,
20
Arlington, ScD«
18
Belvidere, S.D*
27
Freeman, S*D.
18
Miller, Sc Dc
18
Presho, So Do
’
tfessington Springs SDo 21
18
dinner, Sc Do
24
Sturgis, S* D.
21
Woonsocket, Sc D„
66
Ashland, Wis„
18
Bloomer, Wiso
f--*y
a ?
State Bank Membership According to States
NOc of State
Bank Members
1-1-33
State
Michigan
Minne s o t a
Montana
North Dakota
South D a kota
Wisconsin
Total
No, of State
Banks w i t hdraw
ing from mem b e r
ship during: year
8
6
16
0
9
3
42
1
3
5
0
0
1
~icT~
No* of State
Banks admitted
during year.
NOc of State
Bank Members
13-31-33
0
10
S
0
11
1_
28
7
13
17
0
30
3
85
M EMBER BANKS S EVERING CONNE C T I O N S WITH THIS FEDERAL R E S ERVE BANK DURI N G 1933
NATIONAL BANK ABSORBED BY NONMEMBER STATE INSTITUTION
Date
2-30-33
Name of Bank
Location
First N a t i o n a l B a n k
Medford, Wis.
(Absorbed by the state Bank of Medford)
No*of Shares
surrendered
48
NATIONAL BANK ABSORBED BY OTHER NATIONAL BANK
1-20-33
Citizens National Bank & Trust Co. Watertown, &,D.
(Absorbed b y the First National Bank & Trust Co.,,of
Watertown, which changed its title to The First
Citizens National Bank of Watertown.)
90
NATIONAL BANKS SUCCEEDED BY NONMEMBER STATE INSTITUTIONS
1-20-33
First National Bank
(Sucoeeded by Bank of Steele)
Steele, N.D.
24
7-10-33
First National Bank
Casselton, N.D.
(Succeeded by First State B a n k f Casselton)
30
9-26-33
First National Bank
Williston, NoD.
(Succeeded b y First International Bank of Williston)
60
5-S-33
Citizens National Bank
Merrill, Wis.
(Succeeded by Citizens State Bank, Merrill)
138
NATIONAL BANKS SUCCEEDED BY OTHER NATIONAL BANKS
11-7-33
First National Bank of
Grand Forks, N.D.
(Succeeded by First National Bank in Grand Forks)
(First National Bank of Grand Forks, which had been
in conservatorship, was declared insolvent 11-15-33.)
11-13-33
Farmers National Bank of
Chinook, Monte
(Succeeded by The Farmers National Bank in Chinook)
(Farmers National Bank of Chinook was formerly in
conservatorship.)
300
60
NATIONAL BANKS LIQUIDATED DUE TO INSOLVENCY
5-12-33
ll-S-33
13-8-33
10-38-33
2-20-33
9- 5-33
9- S-33
First National Bank
First National Bank
First Nation?,1 Bank
First National Bank
Jackson National Bank in
First National Bank
First National Bank
Adams, Minn*
Fosston, Minn,
Goodhue, Minn.
Ironton, Minn.
Jackson, Minn*
Le Sueur, Minn.
Motley, Minn.
36
24
21
19
32
18
18
.
NATIONAL B A N K S'LIQUIDATED DUE TO INSOLVENCY
Date
3-10-33
3-30-33
11*13-33
5- 9-33
13-37-33
11-13-33
1-31-33
3-37-33
•13-30-33
3-33-33
3-13-33
1-30-33
13-30-33
4-10-33
4-38-33
(Contd)
No.of shares
surrendered
Location
Name of Bank
First National Bank
Citizens & Security National Bank
First National Bank
Merch a nts National Bank
National Bank of An a c o n d a
First National Bank
First National Bank
First National Bank
First National Bank
First National Bank
C itizens Security National Bank
First National Bank
First National Bank
A s h l a n d National Bank
Northern National Bank
Qrtonville, Minn,
39
St* James, Minno
60
Thief River Falls,Minn. 51
Wadena, Minn*
84
81
Anaconda* M o n t u
Conrad, Mont*
51
18
Crosby, No D.
19
Milton* No D.
33
Rock Lake, N» D a
Fox1Ik ton, So B.
.
33
Sisseton, S, D*
45
Tyndall, So Do
33
30
’
.Thite Lake, S.D,
Ashland, Wise
105
A s h l a n d s Wie.
130
STATE MEMBER BANK CONSOLIDATED WITH NONMEMBER INSTITUTION
1-31-33
Drovers State Bank
South btoPaul, Minn.
(Consolidated with Exchange State Bank, South
Sto Paul as Drovers Exchange State Bank)
90
STATE M E M B E R BANK CONVERTED TO NATIONAL SANK
9-37-33
State Bank of Madelia
Madelia. Minn.
(Converted to Citizens National Bank, Madelia)
36
STATE MEMBER BANK WITHDRAWALS
4-10-33
3-17-33
3-18-33
3-17-33
3-33-33
South Range State Bank
Belgrade State Bank
Miners Savings Bank & Trust Co«
Ravalli County Bank
Iron E xchange Bank
South Range, Mich*
Belgrade, Monte
Butte, Monto
Hamilton, Monte
Hurley, Wis,<
36
30
150
41
6S
STATE MEMBER BANKS SUSPENDED
9-32-33
5-30-33
6-13-33
State Bank of Revere
East Helena. State Bank
First State Bank
Revere, M i n n P
East* Helena, Mont«
36
39
15
M EM B E R BANKS THAT HAVE BEEN ABSOR BED OR SUCCEEDED BY OTHER BANKS A N D WHICH
HAVE NOT A S YET SURRENDERED THEIR STOCK IN THE FEDERAL RESERVE BANK
Date
11-14-33
Name of Bank
First National Bank of
(Succeeded by First National Bank at H u b b e l i )
Location
Hubbeli, Mich,
4-39-33
First National Bank of
Park Rapids, Minn<
(Succeeded b y Citizens National Bank of Park Rapids;
First National Bank, which h a d been in conservator
ship* was declared insolvent 11-8-33•)
7- 1-33
First National Bank
Jordan, Monte
(Absorbed by First National Bank, Miles City, M o n t * )
4-39~33
First National Bank
Ree Heights, SoD,
(Absorbed by First National Bank. Miller, S c D c)
insolvent
member
banks
that
have
not
as
yet
surrendered
their
stock
IN THE FEDERAL RESERVE BANK
Location
Name of Bank
Date
33
13- 8-■
33
13- 9.■
13- 8-■
33
12- 8->33
10-11- 33
13- 7--33
33
12- 11-■
10- 26-•33
IQ- 25-33
13- 8- 33
13- 13- 33
13- 8-<33
13- 11- 33
13- 11-■
33
13- 12- 33
First National Bank
First National Bank
Farmers National Bank
First National Bank
First National Bank
First National Bank
First National Bank
First National Bank
First National Bank
First Kenmare National
First National Bank
First National Bank
First National Bank
First National Bank
First National Bank
Cambridge, Minn*
Ceylon, Minn «
Hendricks, Minn*
Holland, M i n n 0
New Richland, Minru
Swanville, ^ n n *
White Bear Lake, Minno
Woodstock, Minn.
Valier, Monto
K e n m a r e , L Do
Canton, Sc D*
Marmarth, No Dc
Hayti, s* D*
Gary, So Do
Stone Lake, Wie*
N U M B E R 1OF MS11BSR BASKS (LXOEHSED IQOfa) IM ACTUAL OPEhATION D E C E M B E R 31. 1333.
National Banks
state Bank8
Total
443
60
503
ME MBER BANKS IN CONSERVATORSHIP ON DECEMBER 31» 1933
Caspian National Bank
Crystal Falls National Bank
Iron County National Bank
First National Bank
First National Bank
Miners National Bank
First National Bank
First National Bank
First National IBank
First National Bank
Northern National Bank
Citizens National Bank
First National Bank
Farmers National Bank
First National Bank
First National Bank
National Bank of Commerce
Morris National Bank
First National Bank
First National Bank
Sidney National Bank
First National Bank
First National Bank
First National Bank
First & Farmers National Bank
First National Bank
First National Bank
First National Bank
National Bank of Hudson
Un ited States National Bank
Caspian, Mich*
Crystal Falls, Mich*
Crystal Falls, Mich*
Gladstone, Mich,
Iron R i v e r 9 Mich«
Ishneming, "Mich,,
Manistique, Micho
Norway, MichOntonagon, M i c h o
Amboy, Minn»
Bemidji, Minn*
Fa r i b a u l t ? Minno
Foley, Minn»
Hutchinson, Minn.
Lake Crystal, M i n n <
>
Lyle, M i n n 0
Mankato, Minn»
Morris, Minn *
West Concord, M i n n 0
■Vinthrop, Minn.,
Sidney, Mont*
Hampden, No Do
Mott, No Do
Munich, No Do
Portland, N. Do
Garretson, Sc D»
Pierre, So Do
Durand, Wis*
Hudson, Wis.
Superior, ^ie*
FISCAL AGENCY FUHCTIOMS - 1933
Issues, redemptions or exchanges of various United States
Government s e c u r i t i e s , including Treasury Savings Certificates re
deemed at this office, which were handled by the Fiscal Agency o p e r
ated by us for the United states Government, numbered 94,183 pieces
and amounted to 4*182,339, 385*75 as compared with 47,664 pieces
amounting to 4 144,282,471,,31 in 1933*
This Agency also handled during 1933, 7,368 purchases and
18,381 resales of Government, securities totaling $89,263,700.
In
addition, either delivery or payment, or both, was handled for banks
and trust companies on 643 transactions in Government securities
amounting to $110,498,950*
There were also 534 transactions of
mi scellaneous general market securities aggregating $3..505,487*36.
Altogether, of these various transactions there were 34,936 totaling
$303,368,137.26, as compared to 34,712 totaling $192,270,330 in 1933
Delivery of 55,784 pieces totaling $109,325,775 was made
on Purchase and resale transactions for other than our own account.
In addition, on exchange transactions, such as denominational ex
change, the exchange of coupon for registered securities, e t c .,
34,538 pieces were delivered* amounting to ,>61,390.800*
The total
number of pieces delivered was 90,332 amounting to $170,316,575 in
comparison with 101,485 totaling #193,877,581 <,92 during the pre
ceding year.
With the exception of Treasury bills, there were eleven
offerings of United btates Government securities during 1933*
In
such operations, 9,451 individual subscriptions contained in 7,5X5
different applications were received in this district*
a llot t e d on these subscriptions was $78,573,150«
The amount
During 1932, 4,094
individual subscriptions were submitted in 1,645 different applica
tions on sixteen similar offerings and $45,718,300 was allotted*
During 1933. 177 tenders amounting to 113,099,000 were
received by this Agency on 47 offerings of Treasury bills.
Of these
38 tenders for Treasury bills, ranging- from ,04$ to 1*99 * and.
amounting to $5,193,000 were accepted.
During 1933, 39 tenders
amounting to #1,348,000 were received and 5 tenders totaling
FISCAL AGEHCY FUHCT10MS
(Contd)
11,15 5 , 0 00 were accented on the 31 offerings of Treasury bills made
that year*
In October, the Secretary of the Treasury announced that
all of the Fourth 4
Liberty Loan Bonds bear i n g serial numbers
the final digit of which was 9, 0 or I were called for redemption
on April 15, 1934 a.n& interest on such bonds w o u l d ea.ase on that
date-
Holders of Fourth Liberty Loan Sends, whether called or un~
called,, were offered the oocortunity of exchanging these bonds for
the n e ^ Treasury bonds of 1943-45 bearing interest at 4 ^
year and
thereafter*
the first
There were 1 S ?701 coupon Fourth Liberty
Loan Bonds amounting to 110,849,350 and 7*851 registered Fourth
Liberty Loan Bonds totaling $5,282,800 received and accepted by
this Agen cy on such e x c h a n g e s «
Including the weekly circular giving current market q u o
tations on the various outstanding government issues, 138 circular
letters were sent to all banks and trust companies in the district
during 1933 in connection with fiscal agency o p e r a t i o n s •
During
the p receding year there were 114 circular letters*
At the close of the year there were 328 banks and trust
c ompanies in this district which w e r e designated as special deposi
taries of public moneys, thereby b e i n g qualified to make payment
through their War Loan Deposit Accounts on a by credit basis for
subscriptions to n e w offerings of Government securities, with the
exception of Treasury bills*
This is 34 less than the number of
banks so designated at the close of the preceding year*
Effective
June 15, 1933, interest paid on daily balances in the War Loan
Deposit Accounts by special depositaries at the rate of 1/3 oC it
was eliminated*
The Fiscal Agency operated by us for the Government
redeemed 639 Federal Intermediate Credit Bank Debentures and
Federal Land Bank bonds totaling $1,451,000 in 1933•
There were
also 533,828 Government and Federal Land Bank coupons amounting
to $8,679,108,85 redeemed during the past year as compared to
4 8 9 , 6 1 8 coupons totaling $7,913,551.45 during 1938*
FISCAL AGflWOY FUNG T ION
(Minneapolis Only)
Reconstruction Finance Corporation
The Federal reserve Hank assumed its duties as Custodian,
Fiscal Agent and Depositary for the Reconstruction Finance Corpora- *
tion in February 1932.
Our duties in connection with the activities
of this Corporation h a v e continued to increase during 1933*
The
following table indicates the funds handled for the R. F. Go since
its organization;
Type or Class of
Loan or Advance
No* of
Loans
Banks
Building and Loan
Associations
Investment Company
Preferred stock &
Debentures of Banks
Regional Agricultural
Credit Corooration
Other Classes
Relief Advances
Amount
Disbursed
835 431,880,434.01
35
1
4,741,669.33
3,000,000.-,00
13
8,030,000*00
Amount
R epaid
Balance
Due (Principal
11,854,368.09 & 9,236,065*93
424,373.93
None
None
4,317 , 3 9 5 . 3 1
3,000,000*00
6,030,000*00
108 30,386,633*01 30,491,401099
9,895,331*03
2
75,000*00
l l , 9 1 3 a68
63,083032
50 10,306,448.,82
Hone
1 0 » 6 0 S , 4 4 8 083
I. 034 #78/730,165.07' 433,781,960.68 #43,138,324.30
Of the original amount loan e d to banks excluding preferred
stock and debenture advances in this reserve district (except Montana),
it should be noted that more than one-half has b e e n paid*
Relief advances are in most instances made available in
installments and are disbursed to the Governors of the states, at
such times and in such amounts as they request*
The purchases of preferred stock and debentures of banks
have recently commenced,,
At this time we-have on hand, awaiting
co m pletion by the local J v F. C* Loan Agency, undisbursed authorisa
t.
tions as indicated in the following t a b l e l
Preferred btock Applications of 91 banks aggregating approxi
mately
^10,000,000
Capital Debenture Applications of 338 banks aggregating approxi
mately
$. 5,000,000
There were included in the 108 loans to the Regional
A g r i c ultural Credit C o r p o r a t i o n , approximately 38,600 notes which
were rediscounted indivi d u a l l y , all o f the l o a n s hav i n g been made
during 1933*
Included in the amount repaid is approximately
£10,000*000 representing 13,000 notes which were prepaid and again
rediscounted with the Federal Intermediate Credit Bank of b t a Paul
to obtain the advan tage of a lower discount rate*
FISCAL A G a K C r ffUMCTION
l&innea'oolis Only J~
(Contd)
The Reconstruction Finance Corooration is also
auth o r ized to make loans for liquidating purposes made through
local a g e n c i e s on banks closed during 1933*
None of these loans
has b e e n disbursed in this office but we have authorisations and
information indicating that several millions of dollars will be
loaned in this manner-,
The local agency is at present completing
the necessary details on these l o a n s , preparing them for p a y m e n t =
FEDERAL INTERMEDIATE CREDIT BANK
The Federal Reserve Bank began acting as Custodian and
Fiscal Agent for the Federal Intermediate Credit Bank in August
1 9 3 3 ? acting in this capacity only on rediscounts of Regional
A gricultural Credit Corporation rediscounts*
During 1933 we h a n d l e d approximately 2 7 ?500 notes aggre
gati n g &20*398,787,56, in *foich were included about 12*000 notes
totaling 41-10,000,000 which were prepaid to the Reconstruction
Finance Corporation and rediscounted with the Federal Intermediate
Credit Bank*
Payments received on these rediscounts totaled
^ 3 ?0 8 7 g836o04, leaving a balance due of $17,310,951=>53 at the close
of the year*
Notes are taken up at maturity by the Regional Agri
c ultural Credit Corporation and h e l d by them until paid or renewed
and included in n e w rediscount offerings..
FEDERAL EMERGENCY ADMINISTRATOR OF PUBLIC VJORXS
The Federal Reserve Bank has agreed to act as Custodian,
Fiscal Agent and Depositary for the Federal Emergency Administrator
of Public Works*
It is expected that our duties in this connection
will involve mainly the holding of securities in safekeeping and
the d i sbursing of funds by issuing checks on the Treasurer of the
United States upon proper authorization, the activities to be con
fined to Head Office.
At the close of 1933 we disbursed £1,351,805.58 to the
M o n t a n a State Highway Department, in this instance the securities
being h e l d at our Helena B r a n c h «
REIMBURSABLE JBXPSHDITDBSS
R3C0NSTE?3CTIQN F I M C S CORPQRATXQB
(Minneapolis Only)
Salaries?
Officers
Siaployeea
Printing* Stationery & Supplies
Telephone
Telegraph
Poetage
Furniture and Equipment
Group Life and ^orknaen5s Compensation
Insurance
All Other
1933
$
Xffgg
0 0 0 c 0 0
$
S s 5 0 0 ,0 6
4 8 s g 6 7 o 3 4
1 6 , 5 2 5 c 7 3
1 ,6 8 3 * 7 2
1 , 6 0 4 ,5 4
5 3 6 o 6 0
1 0 1 o 4 0
1 9 c 0 3
S 3
3 , 8 7 0 o 9 3
1 .5 5 6 c
o6 &
8 9 6 * 4 8
3 , 0 7 3 c 7 9
. 5
, 6 1 4 c 6 3
39
133c88
$“
637163796
Total
i57oie
$ 27,400o34
REIMBURSABLE mEjfiDITURSS
FISCAL A M Y
TRANSACTIONS
1 9 3 3
Salariesi
Officers
Employees
Printing* Stationery & Supplies
Telephone
Telegraph
P o s t a g e
$
5 * Q 0 0 &0 0
15,393037
3 v 1 9 7 o 0 I
$ 4 y9 9 9 c9 6
9 ?779,50
3 P 6 6 9 0 2 8
574c45
390o05
2 6 6 o 3 0
4 ;, 1 5 0 c 6 0
Furniture and 2quipment
All Other
1 9 3 3
1 5 2 ,9 8
1 ,9 6 8 ,6 0
1 6 6 ,1 0
4 C0 0
Total
$ 38s751.: 83
$ 20s960*3?
REIMBURSABLE E5&MDIT0RES
FEDERAL INTERMEDIATE CBED IT B A M
1933
Employees Salaries
Printing, Stationery & Supplies
Furniture and Equipment
All Other
Total
$ 3,324*15
774*11
2760S5
71023
1933
0
0
0
0
4?345o74
8 5
HELENA BRAKCH
In much of the information submitted covering the
o perations of the bank,
the Helena volume figures have been c o m
b i n e d with those of Head Office *
As the Branch was examined twice
b y Head Office Controller during 1833 it is perhaps appropriate
that some reference should be made to Branch affairs at this time
in addition to the separate report presented by the Branch
Managing Director*
The examinations referred to were made as of May 20 and
November IS and covered all functions of the Branch including
veri f i c ation of holdings for the Reconstruction Finance Corporatio zio
It was quite apparent at the first examination that earnings for
the y ear would be much less than in 1S32 and that the discounts,
w h i c h are practically the only source of revenue for Helena, would
be almost liquidated by the close of the year*
The average amount
u n d e r discount in May was #862,000 falling gradually to an average
of .i?115,000 in Decembero
Total earnings for the year were
i22,504,41 compared to ^ 6 8 , 4 0 1 071 earned in 1932,
*
Our Branch was subjected to unusual expense during the
year b u t not to the same degree as Head O f f i c e •
The Budget for 1933
indicated a total operating cost of *78,210 and this amount w a s ex
ceeded by ;i7,149o50o
The postage account contributed the largest
increase over similar items in 1932»
Two additional guards were
employed and recently several transit employees were added to
provide for the heavy increase in Government checks*
expect a further increase in transit volume at Helena*
” may also
?e
Since
September 1 all Federal reserve banks and branches have been send
ing their Montana items direct to Helenao
Formerly only the
West e r n branches sent M o n tana items direct to Helena*
This change
gave the Branch approximately 2,500 more items daily and this
volume has increased*
With many additional Government warrants
now being h a n d l e d through Helena, all the available soace will be
necessary.,
On November 22 the A g e n c y Division of the Reconstruction
Finance Corporation moved out of the quarters they were occupying
in the Branch, making available for bank work about one-third more
HELENA BRANCH
space on the second f l o o r c
(Contd)
The custody work for the Reconstruction
Finance Corooration will continue to be performed in the B r a n c h 0
Part of the salaries of two officers, Messrs* Hoerr and Larson, will
continue to be reimbursed by the H. F. G<
From September 15, 1933
until A ugust 1, 1933 all of iir0 T o w l e 5s salary was paid by the
regional Agricultural Credit Corporation*
made by the Branch in 1934*
This payment will be
Helena budget for 1934 less reimbursable
expense is estimated to reach ^>94,410*
of the actual payments for 1933,
This is ^9*051 in excess
If anything,
this estimate is
l o w b e c ause there is bound to be further increase of services with
added members <
>
The volume of currency handled did not vary greatly
from 1932.
During March the Minneapolis Executive Committee
a u t h o r i zed the raising of the limit of cash to be held at Helena
to # 6 ?0 0 0 P000>
In May your Controller suggested that the need
for this supply was not apparent and that the total carried should
be reduced to the former authorization which allowed a range of
b e t w e e n ;2,500*000 and •:*>3,000*000*
With the smaller amount of
cash needed at Helena, no A g e n t as representative was required for
the issue of notes°
The fees thus saved will amount to several
h u n d r e d dollars yearly.
When the carrying of a greater amount of currency was
approved in M a r c h , another gu a r d was added and in order to comply
with the
K, An code, we are employing six guards at Helena*
During our last examination we made some changes in the v a u l t
co n trol and further suggestions for adding to the protection*
In
order to lessen the possible loss in event of hold-up, an ad d i
tional safe has been orocured so that even with the v a u l t ooen
much of the cash will still be protected by tine clock*
Volume of figures show increases over 1932 in all
functions with the exception of the Discount functiono
Safekeeping
securities h e l d have increased :|;3*000;000 during the year with
ii.l5?0 0 0 a000 held at the close of the year,
It is expected that
this service will show further e x p a n s i o n in 1934.
HELEKA BRANCH
(Contd)
Member bank deposits show an increase over December
3 1 f 1932 of ^l,188,000 with non-member banks carrying clearing
accounts aggregating $>372,000 on December 3 1 0
Penalties at
He l e n a during the oast six months were practically nothing,
nearly all members carrying considerable excess reserveso
Helena b u i lding is in excellent condition*,
This
property is carried on the books at Minneapolis at a net value
of 4}-50,581o 2 6 o
Original cost was i l 7 7 , 3 9 9 c l 4 0
The present staff of 38 persons shows an increase over
1933 of 4 e m p l o y e e s «
Full recovery is made on the salaries of
6 persons with partial recovery made on 3 others from the Re
cons t r uction finance Corporation^
HELENA BRANCH
REPORT OF TRANSIT DEPARTMENT FOR THIS TSAR 1932
Drafts on Us
Number
Amount
Clearings
Amount
Humber
13,000
January
12,000
February
March
14,000
15,000
April
Way
15,000
15,000
June
15,000
July
14,000
August
September
15,000
October
14,000
14,000
November
16.000
December
1
Totals
! 72,000
Monthly Ayer
Items
14,333
Monthly Aver
Amount
$ 4,807,000.
4,087,000,
3,552,000.
5,249,000.
5,708,000.
6,374,000.
7,175,000.
5,628,000.
5,712,000.
6,240,000.
5,235,000.
5.981.000.
$65,748,000.
1,000
1,000
1,000
3,000
2,000
3,000
3,000
2,000
3,000
3,000
2.000
3.000
27,000
$ 1,759,000*
1,285,000*
1,611,000.
1,749,000.
1,843,000.
1,661,000,
2,024,000.
1,871,000.
1,761,000.
1,957,000.
2,319,000.
2.677* 000.
$22,517,000.
76, 000
66,000
68,000
82p000
94,000
99,000
95,000
91,000
142,000
157,000
153,000
166.000
1,289,000
$ 5,479,000.
$
296,000.
407,000.
378,000.
377,000.
278,000,
1,163,000.
582,000.
510,000.
870*000.
632,000.
775,000.
1.145,000.
$ 7,413,000.
Non-Member
Amount
&
$ 5,465,000,
4,104,000,
4,177,000.
5,182,000.
5,791,000.
7,115,000c
7,271,000.
6,481,000.
10,392,000.
11,552,000.
10,522,000.
11,160,000,
, $89,212,000c
107,417
2,250
$ 1,876,417,
To Head Office by Us
Number
Amount
1,000
January
February
1,000
March
1,000
April
1,000
May
1,000
June
1,000
July
1,000
August
1,000
September
1,000
1,000
October
November
1,000
December
1.000
Totals
12,000
Monthly Aver
Items
1,000
Monthly Avero
Amount
Member
Number
$ 7,434,333.
To Other Reserve Banks
Number
Amount
6,000
5,000
7,000
6,000
8,000
8,000
8,000
8,000
7,000
7,000
8,000
8,000
86,000
Treasurer of U, S:
Number
Amount
& 1,585,000.
1,334,000.
1,497,000.
1,595,000.
2,199,000,
2,641,000,
2,790,000.
2,686,000.
2,565,000,
3,098,000.
3,222,000.
2,866,000.
$28,078,000.
17,000
16,000
18,000
26,000
23,000
24,000
23,000
24,000
23,000
27,000
27,000
64,000
312,000
$ 3,232,0000
3,140,000,
3,487,000,
3,299,000,
3,535,000,
3,727,000,
2,853,000.
3,101,000,
3,064,000.
3,006,000,
3,893,000.
5.165.000.
$41,502,000.
•
0
7,167
$
617,750.
G R O T TOTAL 0? I T E M S ..............
GRAND TOTAL OF AMOUNTS . . . . . . .
26,000
$ 2,339,833.
$ 3,458,500,
1,898,000
$ 254,470,000.
_____________________
Return Items Handled
Number
Amount
1933
J anuary
February
March
April
May
June
July
August
September
October
November
December
Totals
Items Sent Direct
By Member Banks
for Collection
Number
Amount
2,033
1,534
7,527
2,187
1,899
2,275
2,355
2,503
2,577
2,654
2,464
2.674
32,682
$ 151,717e14
85,959.22
1,002,064.83
92,021.92
124,413,43
103,612.91
177,996.39
151,125o43
147,509*64
173,286.17
163,126o79
146,997.48
$ 2,519,831t35
571 '
530
238
43
-
16
17
15
20
5
223
9
1,687
$ 29,320.05
33,516.59
I2e154008
3,903,00
-
47,840*, 38
50,?55071
39,130.53
55,649.71
10,154.45
313,909.25
10,786,11
$607,120.36
8 9
COMPARATIVE FTJECTIOML EXPENSE REFORT
(Helena Branch Only)
1933
Average Average
dumber lumber
of Offi- of Bra
cers
ployees Expense
General Overhead—
Controllable
.65
$ 7,773-22
General Overhead—
Ifon-Coner ol la'ble
Average
Humber
of 0ffi«•
cere
1932
Average
Number
of Emolcy~
eea “ EXPENSE
.41
# 6,529.63
8,096,11
5,422.99
Provision of Space
.05
1.04
6,296.83
.05
1.08
5,792c91
Provision of Personnel
.05
.06
863.94
.05
.04
672.80
General Service
.10
10.41
14,877.31
.15
9.05
13,459.46
, 4,944.70
Insurance
4, v>22.49
3,572.88
Postage
3,515.93
Loans, Rediscounts
& Acceptances
.11
.83
2,405.20
.18
1.21
3,434.54
Securities
.05
#84
2,712.80
.10
.68
2.569.29
Currency and Coin
.05
2.04
4,700.05
.13
2.23
5,848*77
Check Collection
.12
6.11
9,791.55
.20
5.74
9,898.40
Non-Cash Collection
.11
1.81
3,102.84
.10
1.78
3,016.31
Accounting
.12
3.01
10,815.71
.17
3.07
11,554.61
Fiscal Agency
*60
2,85
8,352.10
,33
1.99
5,104*22
625.00
624.00
Legal
Auditing
.86
4,150*39
.08
.63
2,717.68
Bank Relations
293.58
19*40
Bank Examination
508.11
271.09
Statistical and Analytical
215.44
139.75
Total
2*01
29.66
$94,096*78
1.95
27.50
$85,205.27
Total Current Expense
$85,359.40
$79,453.31
Reimbursable Expendi
tures
8,352*10
5,104.22
385.26
647.74
$94,096.76
$85,205*27
Stock of Supplies
Total
90
@FedFRASER