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T H IR D A N N U A L R E P O R T

F E D E R A L R E S E R V E B A N K O F M IN N E A P O LIS

Minneapolis, January 1, 1918.

TO SH A R E H O LD E R S:
W e are submitting herewith/'a comparative statement of your bank at the close of business on
December 31, 1915, December 31, 1916, and December 31, 1917. The statement shows to you in
a concrete way the development of the business during the past three years.
Your directors and officers are gratified that they are able to report to you earnings sufficient
to pay all cumulative dividends to shareholders; provide for proper depreciation; charging off of
the furniture and fixtures, other than vault, the liquidation of which the Federal Reserve Board
believes should be provided for over a period o f years; leaving a small sum, one-half of which, in
accordance with the law, is to be paid to the Government, and one-half carried to surplus fund.
During the past year our Government entered into the greatest war of history; nearly six bil­
lion of dollars was raised through issue and sale of bonds; a vast army was put in training; the
means of production, manufacture and distribution have been crowded to the utmost, yet credit
has been available for all legitimate needs; a circulating medium has been furnished the people
in sufficient volume, as and when needed; interest rates have been stable; confidence has been
maintained, and the establishing of the Federal Reserve System thoroughly justified.
The figures in connection with the selling and distribution of Liberty Bonds and Treasury
Certificates give you but an inkling of the vast amount of work which we have been able to per­
form as fiscal agents on behalf of the Government.
W e take this opportunity of thanking you for your co-operation, support and good-will, with­
out which the results obtained in 1917 could not have been secured.




Respectfully,
THEODORE W OLD,
Governor.

S T A T E M E N T O F C O N D IT IO N , D E C E M B E R 31, 1917.
RESO U RC ES.

Bills Discounted and Collateral Loans to M em bers----B a n k e d Acceptances ......................... ..................................
Rediscounts for other Federal Reserve Banks...............
United States Securities ......................................................
Municipal Warrants ................................................................
Accrued Interest on United States Securities.................
Furniture and Equipment (including vault and safes) ..
Organization Expenses ........................................................
Cost o f Federal Reserve Notes, Unissued.........................
Expenses paid in advance ...................................................
Disbursements for Treasury Department (to be re­
imbursed) ............................. . ..........................................
Due from other Federal Reserve Banks...........................
Due from Banks and Bankers, also deferred debits to
member banks .................................................................
National Bank Notes and Federal Reserve Notes, other
banks ...........................................? .....................................
Federal Reserve Notes on hand..........................................
Mutilated Federal Reserve Notes, forwarded for re­
demption ....... ...................................................................
Other Lawful Money . . . ........................................................
Gold Certificates and Gold C oin..........................................
Gold held with Foreign A gen cy ..........................................
Gold in Settlement Fund......................................................
Gold with Federal Reserve A gen t......................................
T o t a l ...........................................................................

Condition
Dec. 31,1917.

Condition
Dec. 31,1916.

Condition
Dec. 31,1915.

$8,082,327.78
7,166,677.76
4,988,121.23
3.228.490.00
25.380.00
17,841.63
29.501.00

$1,985,182.75
6,199,999.55

$1,244,615.71
477,806.40

3,178,687.85
569,664.72
15,607.73
59,274.19

1,328,820.00
910,513.28
6,473.42
54,159.64
32 341 71
19>32!85

i2,915.48
2,127.12

*’ i 6,295. i 8
1,250.00

54,126.89
13,247,610.72

3,598,997.07

4,403,830.21

3,449,929.61

169,361.00
1.420.865.00

18,800.00
2,374,585.00

8,945.00
868,390.00

171,000.00
413,165.61
15.837.955.00

179,552.47
8,775,637.00

21,416.95
2,747,298.00

19.486.500.00
32.909.950.00

7,064,000.00
20,484,045.00

4,355,000.00
14,000,000.00

$113,767,746.43

$57,971,508.12

$30,466,407.16

Condition
Dec. 31,1917.

Condition
Dec. 31,1916.

Condition
Dec. 31,1915.

$2,620,150.00
75,157.13
94,280.60
20,682.39

$2,609,700.00
44,541.27
36,274.45
22,534.74
176.25

$2,546,850.00

2, 100,000.00

4,390,694.20
.

..

L IA B IL IT IE S .

Capital ..........................................................
Profit and L o s s ..........................................
Discount and Interest U n e a rn e d ...........
Discount and Premium on U. S. Bonds.
Withheld for Federal Income T a x ........
Reserved for Abrasion on G old .............
Government Deposits .............................
Cashier's Checks ........................... ...........
Due to other Federal Reserve B a n k s ...
Due to Member B a n k s .............................
Due to Non-Member B a n k s ...................
Federal Reserve Notes O utstanding___
Total

“ i8,*963.25
7,069.14

6,500.00
8,716,529.47
31,488.47
10,524,486.54
40,603,711.83
68,810.00
51,005,950.00

*886,437.5i
5,680.45
4,347,156.58
29,534,961.87

1,822.20
26,340.33
13,865,362.24

20,484,045.66

14,666,000.66

$113,767,746.43

$57,971,508.12

$30,466,407.16

P R O F IT A N D LOSS A C C O U N T , D E C E M B E R 31, 1917.
Balance in account, January 1, 1917............................... ............ .....................................................................
Gross earnings, January 1, 1917, to December 31, 1917............................................................ $628,338.44
Less:
Assessment for expenses Federal Reserve B oard.................................... .....$10,196.14
Cost o f Fed. Res. Notes issued during year and redemption exp..........
43,735.82
Operating expenses .......................................................................................... ..... 114,904.96

168,836.92

Excess of Earnings over Current Expenses....................... .................................................................. .........
Total

..........................................................................................................................................................

Less the follow ing items charged off:
Reduction o f Furniture and Equipment...............................................................................
Reduction o f Bonds to Market V alue.................................................................................
Reserved for Abrasion on G old..............................................................................................
Dividends for period July 1, 1915, to December 31, 1917............................................ ..
Balance carried forward




$44,541.27

$41,364.25
15,000.00
6,500.00
366,021.41
-------------------

459,501.52
$504,042.79

428,885.66
$75,157.13

GROSS EARNINGS BY MONTHS.
1917
$32,120.87
31,310.36
31,094.02
34,081.81
43,184.05
39,952.37

1916
$11,471.21
10,909.70
11,724.58
12,480.69
15,782.63
17,154.86

Total earnings, 1917.. .$628,338.44

1915
$4,269.52
4,014.08
4,932.92
5,109.33
5,942.45
6,741.82

1916

1915

$20,350.25
25,074.83
27,170.94
30,212.02
28,660.58
27,116.39

$9,038.91
10,766.40
10,966.71
13,371.14
12,333.42
12,122.61

1917
$49,421.86
July .................
August ............ ....... 60,826.02
September . . . .
70,234.08
October ..........
58,688.36
November
,
83,835.51
December . . . .
. . . 93,589.13

Total earnings, 1916. ..$238,108.68

Total earnings, 1915... 99,609.31

VO LU M E OF DISCOUNTS FOR 1917.
South
North
Dakota
Minnesota
Dakota
No. of pieces re-d iscou n ted ....
6,198
1,859
935
Total amount re-discounted.. .$70,234,993 $3,060,613 $2,357,925
Total am.ount 1916..............
4,284,590
527,890
768,393

W isconsin

Montana

Michigan

Totals

419
$1,204,175
157,801

1,639
$2,815,187
215,893

77
$481,822
27,501

11,127
$80,154,717
6,522,068

CLEARING STATISTICS.
Number of Items and Amount Handled During 1917.
Within District.

Other Districts.

No. o f Items

Total

No. o f Items

Total

70,043 $454,802,703.13
Federal Reserve B ank s.. . . 213,645 $320,427,397.70
Twin City B a n k s ...............
Member and N on-M em ber.3,404,195
290,462,808.51
Direct to Member B ank s..
3,023
18,983,383.53
Paid for U. S. Government 65,516
12,958,737.27
------------- ---------------------------------------------------------- Total .................................................... 216,668 $339,410,781.23
Total ............................. 3,539,754 $758,224,248.91
Total Volume of Transactions Handled in Bank During 1917 .......................................................... $4,999,014,319.02
Total Deposits to Credit of U. S. Government, 1917...............................................................................
273,104,000.00

FISCAL AGENCY DEPARTM ENT.
War Savings Certificates and U. S. Thrift Stamps
Sold Through This Bank During Dec., 1917.

Treasury Certificates of Indebtedness Sold
Through This Bank During 1917.
Number o f I s s u e s .................................
13
Total number of subscriptions..........
1,235
Amount Sold ........................................ $47,814,000.00

Received
Delivered

BONDS— (SUBSCRIPTIONS

AND

..............................
...............................

Subscriptions ...........................................
Allotments ....................................................
Paid on Allotments .....................................
Received from Treasury D ep a rtm en t....
Delivered to Subscribers.............................
Surrendered for Conversion to 4 % ..........

Stamps
985,000
238,350

PAYMENTS.)
Second Liberty Loan

First Liberty Loan
Bonds
$67,780,450
49,509,050
49,500,181
32,174,300
29,142,600
2,315,700

Certificates
980,000
63,888

Interim
Receipts

$62,869,900
49,500,000
10,233,500

Conversion
Bonds

$9,331,900
9,171,400

$140,801,050
131,763,950
112,659,005
63,500,000
41,916,900

BONDS— (DELIVERED BY DENOMINATIONS.)
First Liberty Loan
Denom­
No.
Coupon Bonds
ination
$50
92,506
48,107
$100
$500
5,964
$1,000
12,309
$5,000
$10,000
$50,000
$100,000
Total in Dollars $24,727,000




No.
Interim Receipts
1,738
5,926
1,569
4,766
1,854
1,900
100
100
$49,500,000

No.
Reg. Bonds
4,946
736
698
107
72
8
12
$4,415,600

No.
Second Liberty Loan
No.
Four per cent
Conversion
Coupon Bonds
47,364
173,168
118,000
30,147
2,741
9,419
2,133
11,759
33
798
100
12

......
$9,171,400
Attest:

$41,916,900

HOWARD HALL, Auditor.




F

ederal

Reserve

Bank

o f

M in n e a p o l is

N INTH D ISTRICT

O F F IC E R S
THEODORES W O L D , Governor
R . A . YOUN G, A sst, to Governor
S. S. COOK, Cashier
F R A N K C. D U NLOP, A sst. Cashier
G R A Y W A R R E N , A sst. Cashier
H O W A R D HALL., A uditor

D IR E CTO R S
JOHN H . R IC H , Chairman and Federal R eserve A g e n t
W . H . L IG H T N E R , T ice Chairman
J. C. B A SS E T T , Aberdeen, S. D .
F . R . B IG E L O W , St. P aul, Minn.
JOHN W . B L A C K , H oughton, Mich.
E . W . D E C K E R , M inneapolis, Minn.
L . B . H A N N A , F a rg o , N. D .
F . P. H IX O N , L a Crosse, W is .
N. B . H O L T E R , H elena, M ont.

CURTIS L. M O SH ER ,
A ssista n t F ederal R eserve A g e n t

M E M B E R A D V IS O R Y COUNCIL
JOHN R . M IT C H E L L , St. P aul

COUNSEL
A . UELAND