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NINTH ANNUAL REPORT OF THE FEDERAL RESERVE AGENT OF THE NINTH FEDERAL RESERVE DISTRICT TO THE FEDERAL RESERVE BOARD COVERING THE CALENDAR YEAR 1923 Federal Reserve Bank of Minneapolis, Office of Federal Reserve Agent. Minneapolis, Minn., January 25, 1924. To Governor D. R. Crissinger, Federal Reserve Board, Washington, D. C. Sir: In conformity with your letter of November 26, 1923, I have the honor to submit herewith the Ninth Annual Report of the Federal Reserve Agent of the Federal Reserve Bank of Minneapolis, relating to operations during the twelve months which ended December 31, 1923. Respectfully submitted, JOHN H. RICH, Federal Reserve Agent. REPORT OF THE FEDERAL RESERVE AGENT AT MINNEAPOLIS 1923 Agricultural and Business Conditions in 1923 This year was characterized by some readjustment in major farm operations in the Northwest and by generally excellent business in the cities. The acreage devoted to spring wheat and rye was reduced and that of corn and flax was greatly increased with fortunate results, for prices of the former have continued to fall as a result of a world sufficiency of bread grains and prices of the latter, which are dependent on domestic factors, have risen. Larger crop incomes have resulted, except in North Dakota, where the loss from a poor and weedy wheat crop more than offset gains in corn and flax. In the livestock industry there were record runs of hogs and calves and large marketings of cattle, although smaller than in 1922, but sheep were held on the farms and ranges and the run of sheep at South St. Paul was smaller than in any year since 1917. In the cities the building industry led a general advance in activity, which reached a peak in May and June. Manufacturing of linseed products and lumber and retail and wholesale trade increased and flour milling outside of Minneapolis held its own. Mining output also increased. The effect was to carry the money volume of urban business (individual debits at city banks) 7.6 per cent above 1922. The larger volume of business did not create sufficiently larger profits to prevent a continuation of the large volume of business failures. Financial Conditions in 1923 Banking conditions in this territory improved during the year, mainly on the side of writing off large losses in the rural districts, which had not hitherto been recognized as such. As a result a considerable number of banks were forced to close, but the remaining banks are in a better competitive position. In the cities, also, a healthier condition was shown by more normal seasonal fluctuations in deposits, loans and Federal reserve bank credit extensions. Loans and deposits of city banks declined in the first half of the year and increased in the fall, but were smaller at the end of the year than at the beginning. Security holdings and borrowings were increased during the year. 3 Discount rates in Minneapolis were weak during the first three months of 1923, but rose slightly in April and remained practically unchanged, if seasonal variations are allowed for during the remainder of the year. Average quotations on thirteen classes of paper at Minneapolis for the last five years have been as follows: 1919, 5.53; 1920, 7.04; 1921, 7.08; 1922, 5.55; 1923, 5.36. Operations of Minneapolis Federal Reserve Bank in 1923 A. General Survey The history of this bank's operations during 1923 falls naturally into four divisions, according to the fluctuations in demand for accommodation and the position of this bank's assets and liabilities. During the first period, January 3 to February 28, loans declined five and a quarter millions and notes outstanding declined nearly four millions. Member bank deposits declined four and one-half millions and United States securities over five millions. Five million dollars' worth of bills were purchased in the open market. Cash reserves reached a peak of $90,389,000, on January 24, but declined steadily thereafter with a net decline for the first two months of nearly two millions. The second period, from the first of March to the middle of August, includes the mid-summer seasonal expansion of loans, due to the expenses incident to the preparation of the crop. In this period, loans increased from the low point of the year, sixteen millions on March 1, to the high point of the year, thirty millions plus on August 15. Bills purchased prior to March 1 were entirely disposed of by the middle of May. United States securities owned and Federal reserve notes outstanding declined slightly, but member bank deposits increased two millions, while our cash reserves declined twelve and one-half millions. Loans to member banks, United States securities owned and member bank deposits remained practically unchanged at the August 15 level during the third period, August 15 to October 24, except that both loans and deposits declined three millions for one week early in September. Federal Reserve notes in actual circulation under the influence of crop-moving demands increased over four millions, and cash reserves nearly five millions. During the fourth period, beginning with the last week of October and continuing to the end of the year, loans rapidly declined to $19,597,000 on December 12 and later increased to $22,831,000. United States securities holdings declined during this period to $7,390,000, the low for the year, and gradually increased to $8,653,000. Holdings of bills purchased in the open market which had been nominal since early in October, were increased, reaching $623,500 on December 31. Notes in cir culation steadily increased during this period and on December 26 amounted to $66,750,000, the highest point since April 8, 1921. Member bank reserve deposits reached a high point in this period of $51,885,000 on November 7, and then gradually declined to $47,118,000. Accompanying the decrease in United States securities owned and the high point of member bank deposits, early in this period, cash reserves increased nearly 17 millions, and on December 12 the total rose above ninety millions for the second time this year, and the second time since March 7, 1919. The net effect of these operations on our balance sheet for the year ending December 31, 1923, was as follows: Bills discounted and United States securities owned each declined over $3,000,000, while bills purchased increased $600,000, making a net decline in total earning assets of $5,700,000. Despite an increase of $1,600,000 in government deposits, total deposits declined $1,200,000, owing to declines of $2,400,000 in member bank reserve deposits and $500,000 in all other deposits. Federal reserve notes in actual circulation increased more than $6,000,000, and total reserves increased nearly $8,000,000. This bank did not borrow from, nor lend to, other Federal reserve banks at any time during 1923. Our cash reserves did not fall below $65,800,000 at any time during the summer months, when the demand for accommodation is the greatest, and increased to approximately $90,000,000 at the end of the year. The percentage of cash reserves against total deposits and Federal Reserve notes in circulation increased from 74.7% at the beginning of the year to 78.4% at the close of the year. The discount rate of this bank remained unchanged at Ay2c/o throughout the year. B. Earnings and Expenses The gross earnings of this bank during 1923 were but $1,749,253 as compared with $1,969,248 in 1922. Current expenses during 1923 were $1,082,137, as compared with $1,084,942 in 1922. Current expenses in 1923 included $50,627 representing the cost of Federal reserve currency, as compared with $84,359 in 1922. After setting aside a reserve for depreciation on United States bonds of $53,855, and alloting $200,000 to the special reserve, the net earnings available for dividends, surplus and franchise taxes were $349,988. Dividends totaling $212,733 were declared at the rate of six per cent per annum on our paid up stock and paid to member banks. There was transferred to surplus account $11,272, and the remainder of $101,450 was paid to the United States Government as a franchise tax. C. Departmental Statistics of Volume The Check Collection department handled 27,405,000 items during 1923, amounting to $3,367,911,000, as compared with 25,068,000 items during 1922, amounting to $2,942,578,000. 5 The Collection department received 340,345 items during 1923 and collected 327,135 items, amounting to $140,052,864. In 1922 this department received 327,486 items and collected 313,715 items, amounting to $133,640,327. The Currency department handled 71,044,746 bills in 1923, as compared with 61,917,537 bills in 1922. D u r i n g 1923, 13,958 shipments of currency were made t o member banks, as compared with 11,020 in 1922. The Custody department handled securities during 1923 amounting to $201,223,932 as compared with $433,000,000 in 1922. This bank, during 1923, made for member banks 33,134 wire transfers, amounting to $1,786,186,000 as compared with 28,150, amounting to $1,640,524,000 in 1922. Transfers for the 5 % gold redemption fund are not included in these figures. The Discount department received in 1923 offerings or requests from 559 member banks, or 57.1% of t h e total number of member banks in the district. In 1922, 706 member banks were served, representing 70% of the total membership. Over 35,000 pieces of discounted paper were handled in 1923, as compared with nearly 48,000 in 1922, and the dollar a m o u n t involved in 1923 was $290,000,000 as compared with $193,000,000 in 1922. Of the total bills discounted for all member banks, the percentages in amount divided by state lines in the years 1923 and 1922 were as follows: 1923 1922 Minnesota 80.0% 50.5% South Dakota 6.9 14.4 Montana 6.2 14.7 North Dakota 4.9 10.8 Wisconsin 1.2 5.4 Michigan 8 4.2 Fiscal Agency Functions The fiscal agency operated by us for the United States Government redeemed 6,486,513 government coupons, war savings stamps, and thrift stamps in 1923, amounting to $34,006,825, as compared with 3,463,050 items in 1922, amounting to $15,526,443. Redemptions of 3,168 treasury certificates and notes, amounted to $19,797,500 in 1923, or slightly more than amounts handled in 1922. Bonds received for conversion, exchange, and redemption in 1923 amounted to $60,113,400 as compared with a total of $83,375,700 in 1922. This bank assisted in the allotment of eight issues of treasury certificates of indebtedness, treasury notes and bonds in 1923, as compared with thirteen issues in 1922. In the operation of this department, 4,133 individual allotments were made in 1923, amounting to $62,381,800, as compared with 4,335 allotments in 1922, amounting to $104,896,200. In addition to handling the ori 6 ginal allotments of United States securities, this department handled 2,263 repurchases and 1,880 resales of these issues, totaling $248,457,400, as compared with 781 repurchases and 571 resales in 1922, amounting to $127,186,300. Activities of Federal Reserve Agent's Office A. Membership At the close of the year, there were 979 member banks in this district as compared with 1,014 at the beginning of the year, according to the capital stock ledger of this bank. There was a net loss of sixteen national banks and nineteen state banks. The total membership at the close of 1923 was divided into 861 national banks and 118 state banks. The new members are: Name of Bank Town MICHIGAN Merchants and Miners National Bank Ironwood Shares Subscribed 69 MINNESOTA First National Bank First National Bank Two Harbors Cokato 38 22 MONTANA First National Bank Labor National Bank Midland National Bank First National Bank Liberty National Bank First National Bank Poplar (reopened) Three Forks Billings NORTH DAKOTA Drake Dickinson Whitman SOUTH DAKOTA Farmers National Bank Fairfax Gold & Company State Bank Big Stone City Dakota National Bank Webster 18 18 150 30 33 18 33 33 15 On June 30, 1923, a special survey was made of the banks then operating in this district and the reports received indicate that there were 969 state banks and trust companies eligible for membership by virtue of possessing the full capital requirements, 131 of which were then members of the Federal Reserve System. Comparisons made with a similar survey one year earlier, show that the percentage of state banks and trust company members to the total number of state banks and trust companies eligible by statute decreased from 14% to 13.7%. A study of our membership by states shows little change from last year in the extent to which eligible banks have become members. The percentage of state members to the total number 7 of state banks and t r u s t companies eligible under the Federal Reserve Act prior to its a m e n d m e n t w a s as follows: Michigan (IS counties) Montana Wisconsin (26 counties) South Dakota Minnesota North Dakota Ninth Federal Reserve District June 30,1923 June 30,1922 43.5% 40.7% 36.7 35.8 12.0 11.2 9.1 9.2 8.8 9.3 3.4 4.0 13.7 14.0 However, an a m e n d m e n t to the Federal Reserve A c t on March 4, 1923, which permits state banks t o join t h e Federal Reserve System with only 6 0 % of the national bank capital requirements, providing they a g r e e to increase their capital within five years out of net earnings until the full requirements are met, reduced the percentage of all member state b a n k s in the district to the total n u m b e r of banks eligible to 8%. T h i s amendment increased the total n u m b e r of non-member eligible banks from 826 to 1,634, which changes the percentages for the several states as follows: June 30, 1923 Michigan (15 counties) 31.3% Montana 23.6 Wisconsin (26 counties) 8.1 Minnesota 5.1 South Dakota 4.9 North Dakota 1.2 Ninth Federal Reserve District 7.4 National banks have continued t o apply for t r u s t powers under Section 11-K of the Federal Reserve Act. Applications received and approved by the Federal Reserve Board during 1923 include the following: Date Bank Location Approved First National Bank Marquette, Mich 10-31-23 Union National Bank Marquette, Mich 10-25-23 American National Bank.. ..Little Falls, Minn 4-10-23 Midland National Bank Billings, Mont 8-29-23 First National Bank Dillon, Mont 3-19-23 First National Bank Lead, So. Dakota 8-15-23 First National Bank Chippewa Falls, Wis 10-25-23 Lumbermen's National Bank.Chippewa Falls, Wis.... 1-2-23 12-31-23 Capital $150,000 150,000 100,000 200,000 200,000 100,000 100,000 100,000 B. Examination of Banks All state banking departments in the Ninth District cooperate with the Federal Reserve Agent in joint examinations of their state banks which are members of the Federal Reserve System. During 1923, 100 examinations and credit investigations were made by the Federal Reserve Agent's examiners of which sixteen were examinations of national banks. Of the 100 examinations and credit investigations made in 1923, 70 were made in con junction with the state banking department examiners, and 27 were made independently, four of the examinations being made of state banks applying for membership in the Federal Reserve System. One of these banks later became a member. In the examination work during 1923, four examiners were used, as compared with five in 1922, who traveled in the aggregate 54,546 miles and examined banks with total resources of $81,323,616. During 1923, the manager, who was included in the total of four examiners mentioned above, devoted a considerable amount of his time to suspended banks. In addition to the foregoing examinations and credit investigations, special visits were made at 23 banks by the examiners for the purpose of obtaining credit information or in connection with rediscounts or collections, or to give general assistance to member banks. Our examiners contributed two months' time assisting at closed member banks in this district during 1923. In addition to the information obtained by Federal Reserve examiners, 1,626 reports of examination of national banks were received from the Chief National Bank Examiner of this district, and 42 reports of examination of state member banks were received from the various state banking departments. There were four calls for reports of condition from national banks and four calls for state member banks during 1923. Also, two semiannual statements of earnings and dividends were required from all member banks. Three applications of state banks desiring to become members of the Federal Reserve System were received and investigated, one bank being examined twice, and two of them were forwarded to the Federal Reserve Board and one approved. One hundred fifty-seven applications affecting the stockholdings of member banks in the Federal Reserve Bank were received and approved during the year. C. Federal Reserve Note Issues During 1923 the Federal Reserve Agent and his deputies at Minneapolis and Helena received $35,240,000 of new Federal reserve notes from the Comptroller of the Currency at Washington, and $6,350,000 of fit-for-use notes from our paying tellers. The issues of new and fit-for-use notes totaled $40,205,000 during the year. The Federal reserve notes in actual circulation increased from $58,735,000 to $64,952,000 between December 30, 1922, and December 31, 1923, after declining to $54,367,000 on May 29 for the low of the year. Unissued Federal reserve notes on hand with the Federal Reserve Agent amounted to $12,275,000 on December 31, 1923, compared with $10,890,000 on December 30, 1922. As collateral security for the Federal reserve notes, there was held by the Agent on December 31, 1923, $54,552,000 in gold coin and gold certificates and $17,431,000 in commercial and agricultural paper, compared with $46,372,000 in gold and $20,981,000 in rediscounts on December 30, 1922. Holdings of gold and gold certificates on December 31 were larger than at anyother time during the year, and larger than at any time since February 28, 1919. D. Reports on Agricultural and Business Conditions During the year twelve monthly reports were prepared for the Federal Reserve Board and later published, containing a total of 96 pages of printed material, compared with 72 pages in 1922. The average number printed each month during 1923 was 5,446, as compared with 4,783 in 1922. The increase in number of both the total pages and copies published was secured with practically no increase ($9.16) in total cost of production. In connection with this monthly report, the summary of national business conditions prepared by the Federal Reserve Board was published each month, and a number of special studies were published in the monthly reports during the year as follows: Statistical Abstract of the years 1919-1922 in the Ninth Federal Reserve District. (January 29.) Building Permits in the Northwest. (A study of their seasonal and cyclical movements.) (March 28.) Improved Outlook for the Northwestern Farmer. (April 28.) The Present Situation in Hog Production. (May 28.) Graphic Summary of Urban Business Conditions in the Northwest. (June 28.) Graphic Summary of Rural Business Conditions in the Northwest. (July 28.) A Survey of Wheat Yields per Acre as Estimated by 800 Member Banks August 10, 1921, 1922, 1923, with three Maps. (August 28.) A Survey of the Rural Bank Credit Situation on June 30, 1921, 1922, and 1923. (This survey was based on replies to questionnaires sent to all banks in this district, and was accompanied by three maps.) (Sept. 28.) A Survey of Banking and Credit Conditions in this District. (Nov. 28.) Wheat Production, Marketing and Milling during Crop Years ending July 31, 1922, and July 31, 1923, in the four states of Minnesota, North Dakota, South Dakota, and Montana. (Dec. 28.) E. General Service There is a continuous and insistent demand that this Federal Reserve Bank furnish speakers for various public meetings 10 and that they describe the operations of the Federal Reserve System and its relation to business activity and agricultural conditions. In response to this demand during the year 1923, representatives of the Federal Reserve Agent and officials of the bank addressed 96 different groups with a total attendance of 14,363 persons as compared with 83 addresses and an attendance of 11,579 in 1922. In addition, many requests were received through personal calls or letters for specific information regarding the banking system, all of which have been met with such information as could be obtained from our library and office files. With reference to certain questions or phases of banking activity, there have been so many requests as to make it advisable and more economical to print formal memoranda containing all the information on the particular subjects for general distribution. During 1923, 6,300 copies of a third edition of the booklet "The Federal Reserve Bank and the Farmer and Stockman"; 7,700 copies of the 1923 edition of the pamphlet "The Economic Position of Agriculture in the Northwestern Grain-Raising Areas"; and 1,000 copies of a circular describing "The Different Kinds of Money in the United States," were prepared and distributed. In addition to these booklets, this office obtained 1,200 copies of the booklet "Of Service to Banks and Business—The Federal Reserve System," which were distributed to member banks and libraries. During the year 1923 the number of volumes in our library increased from 742 to 876 volumes. The number of newspapers and periodicals received was practically unchanged and was comprised chiefly of those known to be of permanent value for reference purposes. Changes in Personnel In the annual fall election, member banks re-elected Mr. J. C. Bassett of Aberdeen, South Dakota, as a Class A Director, and Mr. N. B Holter of Helena, Montana, as a Class B Director. Mr. John H. Rich was reappointed by the Federal Reserve Board as a Class C Director. The Federal Reserve Board announced the reappointment of Mr. Thomas A. Marlow and Mr. Lee M. Ford as members of the Board of Directors of the Helena Branch. Reappointment of Mr. C. J. Kelly, Mr. R. O. Kaufman, and Mr. H. W. Rowley as directors of the Helena Branch, was announced by this bank. Mr. George H. Prince was reappointed by our Board of Directors as a member of the Advisory Council to serve for the year 1924. During the latter part of December the Federal Reserve Board announced the reappointment of Mr. John H. Rich as Chairman and Federal Reserve Agent, and the redesignation of Mr. Curtis L. Mosher and Mr. J. F. Ebersole as Assistant Federal Reserve Agents at the Minneapolis office and Mr. H. L. Zimmermann as Assistant Federal Reserve Agent at the Helena Branch. 11 On April 15 Mr. S. S. Cook resigned as Secretary and Deputy Governor. Mr. W. B. Geery was appointed Secretary, and Mr. B. V. Moore, formerly Cashier, was appointed Deputy Governor. Mr. Harry Yaeger, formerly Field Representative, was appointed Assistant Deputy Governor. Mr. Gray Warren, formerly Assistant Cashier, was appointed Cashier, and Mr. H. I. Ziemer, Mr. W. C. Langdon, and Mr. A. R. Larson were appointed Assistant Cashiers. The complete staff of the Federal Reserve Bank of Minneapolis on December 31, 1923, numbered 494 persons, as compared with 515 persons a year previous, or a decrease of 4%. The number in the Fiscal Agency Department was decreased by 40, or 30% ; in the Agent's Office by one, or nearly 8% ; while there was an increase in the number in the Auditing Department of one, or 9%, and in the Banking Department of 16^, or nearly 5%. Member Banks Severing Connection With This Federal Reserve Batik During 1923: Shares Surrendered Location Name of Bank Reason First National Bank Whitehall, Mont Liquidation 18 Citizens National Bank Laurel, Mont . ..Liquidation 27 ..Absorbed by a Nat'l Bk. 240 North American Bank Minneapolis, Minn Hingham State Bank Hingham, Mont . .Liquidation 26 First National Bank Wessington Springs, S. D... . .Liquidation 45 First National B a k Winner, S'. D . .Liquidation 21 F s t Natonal Bank . .Lewistown, Mont .. Absorbed by a Nat'l Bk. 300 Bank of Fergus County , .Westby, Mont First National Bank ..Liquidation 16 First National Bank ,. Fairfax, S. D . .Liquidation 35 First National Bank Harlowton, Mont . .Liquidation 51 . .Consolidation 75 Lewistown State Bank Lewistown, Mont Commercial National Bank. .Great Falls, Mont ..Liquidation 136 First National Bank Broadview, Mont . .Liquidation 18 First National Bank Bottineau, N. D .. Liquidation 30 Merchants & Miners St. Bk.. Ironwood, Mich .. Conversion 69 First National Bank Bridger, Mont . .Liquidation 19 , .Ballantine, Mont . .Liquidation 18 Ballantine State Bank. ..Gregory, S. D First National Bank. .. . .Liquidation 36 Banking Corp. of Mont.. . .Helena, Mont . .Liquidation 180 I Eh B k Iron Exchange Bank Hurley, Wis . .Withdrawal 48 Beaverhead State Bank Dillon, Mont < . .Absorbed by a State Bk. 31 Brule State Bank Chamberlain, S. D ..Withdrawal 36 First National Bank Roundup, Mont ..Liquidation 42 First National Bank Three Forks, Mont . .Liquidation 18 Yellowstone Valley Bk. & Trust Co., Sidney, Mont . . Liquidation 69 Minneapolis National Bank. .Minneapolis, Minn .. .Liquidation 180 Bank of Arcadia Arcadia, Wis ...Withdrawal 36 Sioux Falls Savings Bank.. .Sioux Falls, S. D ...Withdrawal 210 First State Bank Clyde Park, Mont . . . Liquidation 17 First National Bank Highwood, Mont . . . Liquidation 24 Clarkfield State Bank Clarkfield, Minn ...Withdrawal 36 State Bank of Belt Belt, Mont . . . Liquidation 30 First National Bank Willow City, N. D .. .Liquidation 21 First National Bank Dodge Center, Minn .. .Liquidation 17 First National Bank Sheldon, N. D .. .Liquidation 18 First National Bank Chester, Mont ...Liquidation 21 First National Bank Shelby, Mont .. .Liquidation 15 Howard National Bank Howard, S. D • . . . Liquidation 18 •. .Liquidation 270 Yellowstone-Merchants Nat'l. Billings, Mont . . . Liquidation 36 Citizens Bank & Trust Co...Rapid City, S. D ...Liquidation 51 Hardin State Bank Hardin, Mont .. .Liquidation 23 Roundup National Bank Roundup, Mont .. .Liquidation 18 First National Bank Oswego, Mont . . . Liquidation 18 First National Bank Big Sandy, Mont > . . .Liquidation 17 Inverness State Bank Inverness, Mont .. .Liquidation 17 First National Bank McCabe, Mont ...Withdrawal 21 Farmers State Bank Rockham, S. D 12 FEDERAL RESERVE BANK OF MINNEAPOLIS MILLIONS OF DOLLARS 120 MILLIONS OF DOLLARS 120 F. R.NOTE CIRCULATION 100 100 20 40 PUFtCHAS ;D BIL LS 20 20 40 I 1 I I AO I UNITED STATES SECURITIES 120 ^ I I \ I DISCOUNTS FOR OWN MEMBERS 100 1921 1922 13 1923 Resources and Liabilities of the Minneapolis Federal Reserve Bank at Close of Business December $i, 1921-1923 (In thousands of dollars) RESOURCES Dec. 31, 1923 $54,552 2,053 Dec. 30, 1922 $46,372 3,423 Dec. 31, 1921 $16,856 2,765 Gold held exclusively against F. R. notes. Gold settlement fund with F. R. Board Gold and gold certificates held by banks $56,605 23,545 8,828 $49,795 23,499 7,535 $19,621 31,115 9,140 Total gold reserves Reserves other than gold $88,978 955 $80,829 1,190 $59,876 811 Total reserves Non-reserve cash Bills discounted: Sec. by U. S. Government obligations Other bills discounted $89,933 943 $3,289 15,368 $2,539 19,377 $7,289 43,923 Total bills discounted Bills bought in open market U. S. Government securities: Bonds Treasury notes Certificates of indebtedness $18,657 623 $21,916 $51,212 7,121 2,750 165 4,523 8,049 499 115 4,450 Total U. S'. Government securities.... Municipal warrants $10,036 $13,071 39 $4,565 89 Total earning assets 5 % Redemption fund—F. R. Bank notes. . . . Uncollected items Bank premises All other resources $29,316 14,507 2,103 3.526 $35,026 196 18,166 942 1,809 $55,866 201 14,505 763 1,033 $140,328 $138,158 $133,055 $64,952 $58,735 $56,789 4,220 46,904 2,416 497 $49,817 13,482 3,498 7,484 1,095 49,310 43,524 2,964 Gold with Federal reserve agents Gold redemption fund with U. S. Treasury Total resources $82,019 • $60,687 • LIABILITIES F. R. notes in actual circulation F. R. Bank notes in circulation—net Deposits: Member bank—reserve account Government Other deposits Total deposits Deferred availability items Capital paid in Surplus All other liabilities Total liabilities Ratio of total reserves to deposit and F. R. note liabilities combined Contingent liability on bills purchased for foreign correspondents *Not shown separately prior to 1923. 14 800 916 $51,026 16,588 3,535 7,473 477 801 $46,965 12,919 3,569 7,468 1,125 $140,328 $138,158 $133,055 78.4% 74.7% 58.5% 646 929 864 Earnings and Expenses of the Minneapolis Federal Reserve Bank 192s, 1922, 1921 (In thousands of dollars) EARNINGS 1923 $1,088,899 31,414 520,724 91,943 16,273 Total earnings 1922 $1,451,659 383,531 128,087 5,971 1921 $4,649,554 13 142,001 157,158 17,585 $1,749,253 Discounted bills Purchased bills United States securities Deficient reserve penalties Miscellaneous $1,969,248 $4,966,311 $107,977 463,390 22,281 16,446 467 267 1,140 11,407 21,470 24,945 11,592 $115,499 517,448 23,618 18,807 770 403 908 11,902 35,505 25,554 11,628 30,474 11,409 1,593 1,836 196 46,699 23,860 36,757 6,988 25,757 90,303 7 7,955 J 25,792 9,497 1,578 902 1,667 44,038 21,954 42,515 7,090 21,697 30,818 7,210 1,964 1,556 1,015 44,128 29,921 67,151 7,248 23,494 95,002 96,584 40,005 10,622 53,334 16,765 14,260 47,469 124,584 16,552 26,980 *84,620 CURRENT EXPENSES Salaries: Bank officers Clerical staff Special officers and watchmen All other Governors' conferences Federal Reserve Agents' conferences Federal Advisory Council Directors' meetings Traveling expensest Assessments for Federal Reserve Board expenses. Legal fees Insurance (other than on currency and security shipments) Insurance on currency and security shipments.... Taxes on banking house Light, heat and power Repairs and alterations, banking house Rent Office and other supplies Printing and stationery Telephone Telegraph Postage Expressage Federal reserve currency: Original cost, including shipping charges Cost of redemption, including shipping charges Taxes on Federal reserve bank-note circulation All other expenses $113,236 460,128 24,041 35,756 606 90 1,195 9,507 32,649 23,704 14,149 32,622 Total current expenses $1,082,137 $1,084,942 $1,325,867 tOther than those connected with governors' and agents' conferences and meetings of directors and of the advisory council. •Includes $53,368, for Furniture and Equipment which since 1921 has been charged direct to profit and loss. Earnings Current expenses PROFIT AND LOSS ACCOUNT 1923 $1,749,253 1,082,137 Current net earnings Miscellaneous additions to current net earnings.. Deductions from current net earnings: Depreciation allowances on bank premises.... Reserve for probable losses Reserve for depreciation on United States bonds Furniture and equipment All other 1922 $1,969,248 1,084,942 1921 $4,966,311 1,325,867 $667,116 $8,327 $884,306 $41,231 $3,640,444 $17,264 $40,405 200,000 $9,713 $5,275 500,000 53,856 23,328 32,399 78,058 24,640 30,431 * ;. 1,279 Total deductions $349,988 $142,842 $506,554 Net deductions from current net earnings $341,661 $101,611 $489,290 Net earnings available for dividends, surplus and franchise tax $325,455 $782,695 $3,151,154 Dividends paid $212,733 $213,774 $211,657 Trasnferred to surplus account 11,272 **56,892 488,530 Franchise tax paid United States Government 101,450 ••512,029 2,450,967 •Included with current expenses prior to 1922. ••Bank also charged its surplus account and paid the United States Government $52,423 as an additional franchise tax for 1921. IS DIRECTORS AND OFFICERS FEDERAL RESERVE BANK OF MINNEAPOLIS January 1, 1924 DIRECTORS Class B Class A F. P. Hixon (1924) Wesley C. McDowell (1924) LaCrosse, Wis. Marion, N. D. F. R. Bigelow (1925) Theodore Wold (1925) St. Paul, Minn. Minneapolis, Minn. N. B. Holter (1926) J. C. Bassett (1926) Helena, Mont. Aberdeen, S. D. Class C Homer P. Clark (1924) St. Paul, Minn. Geo. W. McCormick (1925) Menominee, Mich. John H. Rich (1926) [Minneapolis, Minn. OFFICERS John H. Rich, Chairman and Fed- R. A. Young, Governor. eral Reserve Agent. W. B. Geery, Deputy Governor. Homer P. Clark, Deputy Chairman. B. V. Moore, Deputy Governor. Harry Yaeger, Assistant Deputy Curtis L. Mosher, Secretary Board Governor. of Directors and Assistant FedFrank C. Dunlop, Controller. eral Reserve Agent. Gray Warren, Cashier. J. F. Ebersole, Assistant Federal L. E. Rast, Assistant Cashier. Reserve Agent. H. C. Core, Assistant Cashier. Fred M. Bailey, Manager, Bank Ex- Harry Ziemer, Assistant Cashier. amination Department. W. C. Langdon, Assistant Cashier. Andreas Ueland, Legal Counsel. A. R. Larson, Assistant Cashier. Member of Federal Advisory Council George H. Prince, Chairman Board of Directors, Merchants National Bank, St. Paul, Minn. HELENA BRANCH (HELENA, MONTANA) Directors T. A. Marlow, Helena, Chairman Lee M. Ford, Great Falls C. J. Kelly, Butte R. O. Kaufman, Helena H. W. Rowley, Billings R. E. Towle, Manager H. F. Brown, Cashier R. E. Schumacher, Assistant Cashier Officers H. L. Zimmermann, Assistant Federal Reserve Agent T. B. Weir, Legal Counsel
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