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FOURTEENTH ANNUAL REPORT
of the

FEDERAL RESERVE AGENT
of the
NINTH FEDERAL
RESERVE DISTRICT
to the

FEDERAL RESERVE BOARD

Covering the Calendar Year
—1928—




Federal Reserve Bank of Minneapolis,
Office of the Federal Reserve Agent,
Minneapolis, Minn., February 15, 1929.
To Governor R. A. Young,
Federal Reserve Board,
Washington, D. C.
Sir:
In conformity with our custom, I have the honor to submit herewith the Fourteenth 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, 1928.




Respectfully submitted,
J. R. MITCHELL,
Federal Reserve Agent.

REPORT
OF THE

FEDERAL RESERVE AGENT
AT MINNEAPOLIS

1928
BANKING, AGRICULTURAL AND BUSINESS CONDITIONS

In the Ninth Federal Reserve District, the year 1928 was
a year of progress along the lines of readjustment to the
changed economic background which has prevailed since war
times. With farm income this year about as large as last
year, business was nevertheless able to show an increase over
a year ago, and in some cases to establish new high records
for all time. The chief reason for this seeming anomaly was
that short-time debt had been reduced materially and a larger
proportion of farm income could therefore be spent locally in
payment for goods and services.
The most convincing evidence that readjustment to postwar conditions made progress in 1928 was furnished by the
records of decreasing bankruptcies and failures. This decrease continued for the second year and the number of failures in 1928 was the smallest since 1922.
The banks of the district experienced a year of improvement with the single exception that prices of investment
securities held by many banks were lower than a year ago.
In December 1928, deposits of country member banks were
5 per cent higher than a year ago, and were fully as high as
the average which appears to have been established for the
post-war years. In other words, a satisfactory recovery occurred from the slump in deposits of 1926 and the first half
of 1927. Country bank loans did not increase during the year
and in 1928 were at the lowest level since 1916. Investment
holdings of country banks were the largest in history, and
borrowings from other banks were small.
The reduction in country bank loans without a corresponding decrease in country bank deposits bears witness to
the fact that the short-term debt situation in the district had
improved. Outside of the larger cities, deposits exceeded
loans by 73 per cent. This situation has never existed heretofore in the fifteen years for which records have been compiled. In the pre-war years of 1913 and 1914, deposits exceeded loans in the rural portion of the district by only 15
to 20 per cent.
Probably the most significant change in country banking is the trend which has taken place towards fewer and
larger banking units. The number of country banks in the
district decreased from 3,853 at the peak in 1920 to 2,503 on
the date of the October call in 1928. The average amount of



deposits per country bank on October 3 was over $500,000,
the largest amount on record. To show the extent of this
change one needs only to recall the situation in 1913, when
there were 2,900 country banks, with average deposits of only
$200,000. The growth in the size of banking units means a
great deal to the district in the potential diversification of
assets, in improvement of bank management and earnings
and in stability of deposits.
City banks in the district held larger deposits during the
first two-thirds of 1928 than in the corresponding portion of
1927. In the last third of 1928, deposits were almost exactly
equal to the volume held in 1927. A larger demand for loans
by customers existed throughout 1928 than in 1927, and investment holdings were also larger throughout 1928 than in
the preceding year. In April 1928, borrowings by city banks
from this Federal Reserve Bank increased considerably and
during the remainder of the year the general level of borrowings by these banks was higher than in any year since
1923.
Agriculture has increased its acreage in crops in this
district steadily since 1920. In Minnesota, North Dakota,
South Dakota and Montana the 1928 crop acreage for the
eight most important crops was 55,225,000 acres. This represented an increase of nearly 1 million acres over 1927 and
an increase of 7 million acres over 1919, when the expansion
due to war time conditions was at its peak.
The cash paid to this district as a result of 1928 farming
operations was in the neighborhood of 1 billion dollars. This
was about the average for the last six years. As usual, there
was a mixture of favorable and unfavorable developments
in the farming situation. The most favorable development
was the new high level reached by dairy income in 1928.
This industry is not yet as important in the district as is
small grain farming, but in the last six years its growth has
set it definitely ahead of the hog industry in point of total
cash receipts.
Another bright spot in the farming picture was the
range cattle and sheep business. Feeder steers, which are
the principal source of revenue from the livestock ranges,
have brought high prices throughout 1928, although in the
late fall some decrease in prices occurred. The production of
lambs and wool was increased in 1928 and the products were
sold without any reduction in price being forced from the
high levels of the past few years.
A third favorable feature in the farmers' year was the
production of satisfactory crops of feed grain. The corn
crop was larger than in 1927 and much better distributed
throughout the territory. The barley crop was the largest
on record.
Turning to unfavorable developments, the outstanding
instance was the shrinkage in prices for cash grains, due to



the large world crop, and the lower prices for potatoes which
accompanied the large domestic crop of 1928. This development caused much distress because producers in many cases
had little income left after paying the cost of threshing and
marketing. However, as a business factor the fact must be
considered that the large crop meant large revenues to
threshermen and railroads and to those who derive commissions from storing and handling grain. Cash flowing into
the district as a result of grain and potato sales from the
1928 crop was only about 20 per cent less than in the fall of
1927.
Another unfavorable development in farming was that
the 1928 crop of hogs was the smallest in several years.
While hog prices were not below the average of the post-war
years and there was sufficient corn for feeding, the total
revenue from the sale of hogs was not as large as the revenue
produced from this source a year ago. However, in some
counties where in 1927 corn had to be imported for feeding
purposes, the net returns from hog raising operations were
more favorable in 1928 than in 1927.
The third unfavorable aspect of the farming situation
was that land prices continued to be low. There is, as yet,
only an imperfect adjustment of farming to conditions which
have prevailed since the war. Individual farmers, thru the
use of machinery or advanced farming technique or some
other resourcefulness, have been making good incomes.
They have paid their short-term indebtedness and in many
cases their mortgage debt as well, and have maintained their
deposits in banks. Other farmers, often in the same community with prosperous farmers, have been making a bare
livelihood or have been losing ground.
The general volume of business showed improvement
over 1927. Debits to individual accounts at seventeen cities
established a new high record for all time during 1928. The
country check clearings index also established a new high
record in 1928 for the years during which these figures have
been available. In more detail, increases in 1928 over 1927
were shown in miscellaneous freight carloadings, flour production, copper output, life insurance sales, country lumber
sales and wholesale trade in hardware and shoes. Decreases
occurred in city department store sales, securities sales and
wholesale trade in groceries. In general, country business
conditions showed more improvement in 1928 than city business conditions. In the last few months of 1928, the volume
of building in the larger cities increased over the volume a
year ago.
OPERATIONS OF MINNEAPOLIS FEDERAL RESERVE
BANK IN 1928
A. General Survey

The earning assets of the bank fluctuated between a
low point of about 31 million dollars, reached on March 7, and
a high point of about 50 million dollars, reached on Novem


ber 14, as indicated by the weekly published balance sheets
of the bank. Loans to member banks were lowest on March
7 and amounted to $1,591,000 on that date. The high point
of loans to member banks occurred on October 17 and the
total reached $19,307,000. This total is exclusive of discounts
for the Federal Intermediate Credit Bank of St. Paul, which
borrowed continuously from this bank throughout the last
five months of 1928. Borrowings by this Intermediate Credit
Bank fluctuated between 2 million dollars and $500,000 during
these months.
Borrowings by city banks constituted the greater portion of discounted bills during the year. After borrowing
only small amounts in the early weeks of the year, the city
member banks which report weekly to this office increased
their borrowings from the Federal Reserve Bank to over 12
million dollars on May 2. After this date there was a decline until the middle of July. Borrowings by these banks
were then increased to a high point on October 17, after which
an almost continual decline occurred until the end of the
year. Country member banks reduced their borrowings in
the early weeks of the year to the lowest point in the postwar years, the total declining to about IV2 million dollars on
March 28. After this date borrowings increased to a minor
peak on May 23, and reached the highest point of the year,
$4,251,000, on August 29. Since that time there has been
some reduction in country member bank borrowings from this
bank, but the reduction has not been as great as in other recent years.
Federal reserve notes in circulation reached the low point
of the year, according to weekly published figures, on August
29 when notes in circulation amounted to $53,273,000. The
highest figure was $66,373,000, reached on December 26.
Member bank reserve accounts decreased during the first five
months of the year to a low point of $49,613,000 on May 29,
1928. During the fall months a rapid increase occurred, and
the high point of the year, amounting to $56,721,000, was
reached on October 17, 1928.
The net effect of these changes upon our balance sheet
for the year ending December 31, 1928, as compared with
December 31, 1927, was as follows: Cash reserves increased
11 million dollars; bills discounted increased about 2V2 million dollars; total earning assets decreased 6 million dollars;
Federal reserve notes in actual circulation increased 4 million
dollars; member bank reserve deposits increased 1 million
dollars; the ratio of total cash reserves to deposits and Federal reserve note liabilities combined increased from 65.1 per
cent to 71.6 per cent.
This bank did not borrow from or lend to any other Federal reserve bank during 1928.
The discount rate of the bank remained at 3V2 per cent
from September 13, 1927 to February 7, 1928, when it was
increased to 4 per cent. The discount rate was later increased to 4V2 per cent on April 25, 1928.



B. Earnings and Expenses
The gross earnings of this bank during 1928 were $1,710,000, as compared with $1,390,000 in 1927. Current expenses
during 1928 were $1,000,000, as compared with $1,049,000 in
1927. The current net earnings during 1928 were $710,000,
as compared with $341,000 in 1927. Miscellaneous additions
to current net earnings in 1928 amounted to $332,000, and
deductions from current net earnings amounted? to $427,000,
leaving final net earnings available for dividends, surplus
and franchise tax of $615,000, as compared with $296,000 in
1927. In 1928, dividends totaling $181,203 were declared at
the rate of 6 per cent per annum on our paid-in capital stock,
and paid to member banks. There was transferred to surplus account $43,350. The remainder, amounting to $390,151, was paid to the United States Government as a franchise
tax.
C. Departmental Statistics of Volume Including the Helena
Branch
The Transit, or Check Collection Department, handled
24,874,000 items during 1928, amounting to $4,591,766,000,
as compared with 24,238,000 items during 1927, amounting
to $4,277,152,000.
The Collection Department received 296,000 items during 1928, amounting to $146,219,000, as compared with 263,000 items during 1927, amounting to $127,400,000.
The Currency Department received and counted 39,464,000 bills, amounting to $208,262,000 in 1928, as compared
with 39,970,000 bills, amounting to $213,292,000 in 1927.
This department also received and counted 10,056,000 coins,
amounting to $4,036,000 in 1928, as compared with 11,794,000 coins, amounting to $3,852,000 in 1927.
The Vault Custody Department in its service of safekeeping of securities, handled 103,414 bonds during 1928, as
compared with 113,782 bonds in 1927. This department cut
and forwarded to the owners of the securities, or turned over
to other departments for collection or credit, 158,618 coupons
during 1928, as compared with 154,771 coupons during 1927.
On December 31, this department was holding for member
banks $144,000,000 of securities for safekeeping or pledged
against government deposits, or as collateral to bills payable.
Transfers of funds made for member banks, including
those made for the 5 per cent Redemption Fund, numbered
69,000, totaling $2,957,404,000 during 1928, as compared
with 62,000, totaling $2,734,981,000 during 1927.
The Discount Department served 224 member banks
during 1928. In 1927, 275 member banks were served. During 1928, 23,773 notes were discounted, amounting to $625,358,000, as compared with 10,027 notes, amounting to $141,031,000 in 1927.



Of the discounted and rediscounted notes held by this
bank on December 31 of the last three years, the geographical distribution was as follows:
(000's omitted)
1928
Minneapolis and St. Paul
$1,935
Other Minnesota
686
Montana
213
North Dakota
348
South Dakota
446
Wisconsin
199
Michigan
168
Federal Intermediate Credit Bank
of St. Paul
500
Total

$4,495

1927
89
633
21
318
640
88
116

1926
$1,000
1,162
48
440
999
201
188

0

0

$1,905

$4,038

$

Bills drawn in dollars and foreign currencies which were
purchased by this bank in the open market during 1928 numbered 6,804, amounting to $69,343,000, as compared with
6,514, amounting to $75,219,000 in 1927. Bills purchased
from other Federal Reserve Banks during 1928 numbered
1,297, amounting to $25,309,000, as compared with 1,121,
amounting to $22,921,000 in 1927.
FISCAL AGENCY FUNCTIONS

Issues, redemptions or exchanges of various United
States Government securities, including Treasury Savings
Securities redeemed at this office or received from Postmasters after redemption by them, numbered 224,045 pieces and
amounted to $149,551,218, as compared with 181,529 pieces,
amounting to $170,657,000 in 1927.
Included in the above figures for 1928 are the Third
Liberty Loan Bonds which matured on September 15. Of
these, 22,920 pieces totaling $13,359,450 submitted in 3,476
applications were exchanged for other issues on or before
September 15. The greater part of the Third Liberty Loan
Bonds, numbering 99,615 in coupon form, amounting to $18,189,400, and 25,682 in registered form, amounting to $6,031,350 were submitted in 16,765 applications for redemption.
These figures are comparable with those of the Second Liberty Loan Bonds, which were called for redemption in 1927
and of which there were redeemed that year 59,699 in coupon
form, amounting to $14,679,250 and 17,939 in registered
form, amounting to $4,966,350 submitted in 11,851 applications.
In May, the Treasury Department made public announcement of its willingness to purchase Third Liberty Loan Bonds
direct from individual holders at a price of 100-8/32 and accrued interest. In accordance with the terms of this announcement, 76 purchases, amounting to $456,750 were made
for the Government. In June, 141 purchases of these bonds,
amounting to $673,500 at 100-2/32 and accrued interest were



also made. Again in July and August, additional purchases
amounting to $2,613,250 submitted in 1,168 applications
were made at not exceeding 100-1/32 and accrued interest.
Altogether, 1,385 purchases totaling $3,743,500 were made
for the Government of Third Liberty Bonds during 1928, as
compared with 422 purchases amounting to $1,196,050 of
the Second Liberty Bonds in 1927.
This Agency also handled during 1928, 6,201 orders for
the purchase of Government securities and 6,193 resales of
Government securities totaling $87,437,150. In addition,
either delivery or payment, or both, was handled for banks
and trust companies on 744 transactions in Government
securities amounting to $48,627,500. There were also 578
transactions of miscellaneous general market securities aggregating $2,853,221. Altogether, of these various transactions, there were 13,716 totaling $138,917,871, as compared
with 13,768 transactions totaling $155,229,160 in 1927.
Including short-term Government securities which were
transferred by wire, delivery of 41,035 pieces totaling $103,109,513 was made on purchase and resale transactions for
other than our own account, as compared with 38,308 pieces
totaling $80,432,050 in 1927. In addition, on exchange transactions such as denominational exchange, the exchange of
coupon for registered securities, etc. 33,535 pieces were delivered amounting to $26,687,150, as compared with 30,999
pieces amounting to $23,961,550 in 1927.
This Agency handled subscriptions, allotments, payments
and security deliveries in this district on ten offerings of
United States Government issues during 1928 as compared
with eight offerings during the preceding year. In such
operations during 1928, 7,478 individual subscriptions contained in 4,984 different applications were received. The
amount allotted on these subscriptions was $58,327,000.
During 1927, $61,578,100 was allotted on subscriptions.
The Fiscal Agency operated by us for the Government
also redeemed 809,698 Government and Federal Land Bank
coupons amounting to $10,126,000 during 1928, as compared
with 1,009,976 coupons amounting to $9,919,000 during 1927.
ACTIVITIES OF THE FEDERAL RESERVE AGENT'S
OFFICE
A. Federal Reserve Note Issues

Since the organization of this Federal Reserve Bank
there have been received by the Federal Reserve Agent from
the Comptroller of the Currency $435,700,000 of new Federal
reserve notes, and during the same period there has been
issued by the Federal Reserve Agent to the Bank $422,961,000
of new Federal reserve notes. Meanwhile, the Federal Reserve Bank "retired", or returned to the Federal Reserve
Agent $125,123,000 of currency fit for reissue and reissues of
such fit-for-use notes totaled $122,333,000. Federal reserve



notes were redeemed and destroyed at Washington since the
organization of this Bank totaling $347,593,480. The total of
the notes issued by the Federal Reserve Agent to the Bank,
as shown above, less the amount returned to the Agent and
the amount returned to Washington for destruction, are designated as "outstanding."
On December 31, 1928, the amount of notes outstanding
was $72,577,520, and the Federal Reserve Agent held $15,529,000 of new and fit-for-use notes. Of this total outstanding ($72,577,520) there was "in circulation" $65,273,850, and
the amount of notes held by our paying tellers here and in
the Branch Office at Helena combined and the amount of
mutilated Federal reserve notes forwarded for redemption
totaled $7,303,670.
During 1928, the Federal Reserve Agent and his assistants received $30,480,000 of new Federal reserve notes from
the Comptroller of the Currency at Washington and $7,540,000 of fit-for-use notes from our paying tellers. The issues
of new and fit-for-use notes totaled $40,015,000, as compared
with $36,694,500 during the preceding year. The amount of
Federal reserve notes outstanding with this Federal Reserve
Bank increased from $66,910,555 to $72,577,520 between December 31, 1927 and December 31, 1928.
As collateral security for the Federal reserve notes outstanding with the Federal Reserve Bank, there was held by
the Agent on December 31, 1928 $47,920,520 in the form of
gold coin and gold certificates in vault or on deposit with the
Federal Reserve Board, $4,216,000 in eligible paper and $21,792,000 in purchased bills, compared with $49,728,000 in gold
and $19,944,000 in eligible paper and purchased bills on December 31, 1927.
B.

Membership
At the close of the year, there were 719 member banks
operating in this district, as compared with 735 member
banks at the beginning of the year. There was a net loss of
11 national banks and 5 state banks. The total membership
(banks in operation only) at the close of 1928 was divided
into 663 national banks and 56 state banks. The new members are:
Name of Bank
Town
Jackson National Bank in
Jackson, Minn
First National Bank in
Lakefield, Minn
St. Paul National Bank of
St. Paul, Minn
First National Bank of
Winnebago, Minn
Steele County National Bank of .. Finley, N. D
Brookings National Bank of
Brookings, S. D
Lake Norden National Bank of ... Lake Norden, S. D
First National Bank of
Bangor, Wis
Iron Exchange Bank of
Hurley, Wis
National Bank of Commerce of . . . Superior, Wis




10

No. of Shares
Subscribed
30
18
75
21
18
33
17
53
68
162

NUMBER OF BANKS IN OPERATION IN THE NINTH
FEDERAL RESERVE DSTRICT
December 31, 1927, and December 31, 1928
National State Members Non-Members
1927
1928
1927
1928
1927
1928
Michigan
Minnesota
Montana
North Dakota
South Dakota
Wisconsin
Ninth Federal
Reserve Dist

C.

Total
1927
1928

39
281
72
141
96
45

39
278
70
133
96
47

9
15
24
2
9
2

8
13
22
1
9
3

30
874
111
378
308
197

31
816
109
342
303
194

78
1,170
207
521
413
244

78
1,107
201
476
408
244

674

663

61

56

1,898

1,795

2,633

2,514

Examination of Banks

During 1928, 80 credit investigations, examinations and
special investigations were made by the Federal Reserve
Agent's Examiners. In the examination work this year, the
examiners and their assistants traveled in the aggregate
31,765 miles and examined banks with total resources of
$115,426,560.
In addition to the information obtained from the Federal
Reserve Examiners, 1,282 reports of examination of national
banks were received from the Chief National Bank Examiner
of this district, and 16 reports of examination of state member banks were received from the various state banking departments. There were four calls for reports of condition
of national banks and four calls for state member banks during the year. Also two semi-annual statements of earnings
and dividends were required from all member banks. Reports of condition and of earnings and dividends, totaling approximately 4,400 were received, verified and filed.
D. Applications for Fiduciary Powers
National banks have continued to apply for trust powers
under Section 11-K of the Federal Reserve Act. Applications
received and approved by the Federal Reserve Board during
1928 include the following:
Name of Bank

Location

Citizens National Bank
Houghton, Mich.
Gogebic National Bank
Ironwood, Mich.
Midway National Bank
St. Paul, Minn.
First National Bank.
West Concord, Minn.
Winona Nat'l & Savings Bk. Winona, Minn
U. S. National Bank.
Deer Lodge, Mont. ..
National Bk. of Montana Helena, Mont.
Security National Bank
Sioux Falls, S. D.
First National Bank
Yankton, S. D.
National Bk. of Commerce Superior, Wis.
•Trust powers confirmed after change of name.



11

Date
Approved
5-18-28
12-21-28
,12- 7-28
2-14-28
7-27-28
. 3- 5-28
3-22-28
. 4-24-28
. 8-24-28
. 2-27-28

Capital

Powers

$100,000
100,000
200,000
50,000
200,000
100,000
250,000
250,000
50,000
150,000

Limited
Limited
Full
Full
Full*
Limited
Full
Full
Limited
Full

E.

Reviews of Agricultural and Business Conditions

During the year, twelve monthly reviews were prepared
for the Federal Reserve Board and later published, containing a total of 99 pages of printed material. The number
printed in December 1928 was 6,450, as compared with 6,425
in December 1927.
A summary of national business conditions prepared by
the Federal Reserve Board was included in each issue.
A number of special studies were published in the monthly reviews during the year as follows:
The Effect of Farm Income on the Volume of Building
in the District. (January 28).
Statistical Summary of the Years 1923-1927, Inclusive,
in the Ninth Federal Reserve District. (January 28).
Real Estate Activity in Hennepin and Ramsey Counties,
1924-1927. (February 28).
Crop Acreages and Production and the Farm Value of
Cash Crops, 1910-1927. (Supplement to February 28 issue).
The Agricultural Outlook for 1928 and Planting Intentions on March 1, 1928. (March 28).
Banking During 1927 and General Survey of the Year.
(March 28).
Bankruptcies Among Farmers in Minnesota, North Dakota, South Dakota and Montana, 1910-1927. (April 28).
Seasonal Changes in Country Bank Demand for Federal
Reserve Credit. (April 28).
The Effect of Easter on Currency Movements at the Minneapolis Federal Reserve Bank. (May 31).
Motor Vehicle Registrations in Minnesota, North Dakota,
South Dakota and Montana, 1915-1927. (May 31).
Freight Commodity Statistics of the Northwestern Region. (June 28).
The Growing Use of the Combine Harvester and Five
Cardinal Principles of Successful Combine Operation. (July
27).
The Use Made of Investable Funds by 117 Representative
Country Banks, based on a special questionnaire covering
conditions on June 30, 1928. Investable funds were divided
into loans to customers, call loans and commercial paper,
bonds and securities, cash and "due from banks". (July 27).
Country Check Clearings as a Business Index. (August
28).
Ninth District Banking Position, June 30, 1928. (September 29).
Country Banking in the Ninth Federal Reserve District, 1913-1928. (September 29).
Regional Subdivisions of the Country Check Clearings
Index. (October 29).
Country Lumber Records, 1920-1928. (November 30).
F. General Service
There is a demand that this Federal Reserve Bank
furnish speakers for various public meetings, and that they
describe the operations of the Federal Reserve System and



12

its relation to agriculture, commerce, industry and finance:
In response to this demand during the year 1928, officials
and representatives of this Bank addressed 53 different
groups, with a total attendance of 8,740 persons, as compared
with 55 addresses and an attendance of 8,646 in 1927. Two
radio addresses were delivered during 1928. 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. During the year
1928, the number of volumes in our library increased from
1,266 to 1,351, not including pamphlets, bound periodicals or
annual reports. The number of newspapers and periodicals
received was practically unchanged and was comprised chiefly of those having current interest and permanent value for
reference purposes.
CHANGES IN PERSONNEL

In the annual fall elections, Mr. P. J. Leeman was reelected to succeed himself as Class A director and Mr. P. N.
Myers was re-elected Class B director to succeed himself, both
serving for terms of three years, beginning January 1, 1929.
Mr. Geo. W. McCormick was reappointed Class C director by
the Federal Reserve Board to succeed himself for another
term. At the end of the year the Federal Reserve Board reappointed Mr. J. R. Mitchell as Chairman of the Board of
Directors and redesignated Curtis L. Mosher and F. M. Bailey
as Assistant Federal Reserve Agents for the year 1929. The
Federal Reserve Board forwarded notice of the reappointment of Mr. Homer P. Clark as Deputy Chairman of the
Board for 1929. The Board also redesignated Mr. O. S.
Powell as representative of the Federal Reserve Agent in the
receipt and issue of Federal reserve notes, the handling of
gold coin and gold certificates and in making wire transfers
of gold. Mr. Mosher was also reelected Secretary of the
Board of Directors.
Late in December the Federal Reserve Board forwarded
notice of the reappointment of Mr. C. J. Kelly as Director of
the Helena Branch and the Board of Directors of the head
office reelected Mr. R. 0. Kaufman as a Director, both succeeding themselves, for two year terms.
On December 10, the Board of Directors accepted the
resignation of Mr. W. A. Cutler, Jr. as Assistant Cashier of
the Helena Branch and elected Mr. A. A. Hoerr as Assistant
Cashier of the Helena Branch.
All of the other officers of the bank and Helena Branch
were reelected for the year 1929.
The complete staff of the Federal Reserve Bank of Minneapolis and its Helena Branch, including officers, employees
and building employees, but excluding temporary help, numbered 314 persons on December 31, 1928, as compared with
340 at the close of the previous year.



13

Resources and Liabilities of the Federal Reserve Bank
of Minneapolis
{In Thousands of Dollars)
RESOURCES
Dec. 31.
1928
Gold with Federal reserve agent
$ 47,920
Gold redemption fund with United States Treasury.2,342

Dec. 31,
$

49,729
1,423

$

60,539
2,074

Gold held exclusively against Federal reserve notes...$
Gold settlement fund with Federal Reserve Board

$

51,152
16,830

$

62,613
20,483
6,873

$

73,034

$

89,969

$

93,121

Gold and gold certificates held by bank

5,742
.$

Total gold reserves _..

85,650

88,160

Total reserves
Non-reserve cash
Bills discounted:
Secured by United States Government obligations
Other bills discounted
Total bills discounted

-..$

Bills bought in open market
United States Government securities:
Bonds
Treasury notes
Certificates of indebtedness

Dec. 31,
1926

5,052

2,510

Reserves other than gold-

3,152

4,029
$

1,392

77,063
1,223

903

2,232

329

2,263

1,576

658
3,380

4,495

$

1,905

$

4,038

21,819

'.

18,319

12,615

4,519
4,619
1,770

Total United States Government securities...$
Other securities

50,262
29,646

1927

11,678
4,411
7,811

7,569
1,841
7,629

10,908

$

1,635

Total bills and securities

38,857

23,900

$

$

44,744

17,039
621

620
$

34,313

Uncollected items
Bank premises
All other resources

15,830
2,110
842

15,162
2,202
1,791

13,543
2,774
2,159

Total resources

$ 147,191

$ 142,185

$ 146,813

$ 65,274

$

$

LIABILITIES
Federal reserve notes in actual circulation
Deposits:
Member bank reserve account
Government
Foreign bank
Other deposits _____

-

Total deposits

_
_

54,836
1,874
139
274

68,891

50,946
1,567
901
152

$ 57,911

Total liabilities

$

57,123

$

53,566

$ 13,079
3,009
7,082
836

Deferred availability items
Capital paid in
Surplus
All other liabilities

$

13,010
3,009
7,039
780

$

12,858
3,064
7,527
907

$ 147,191

Ratio of total reserves to deposit and Federal reserve note liabilities combined (per cent)
Contingent liability on bills purchased for foreign
correspondents
$




56,067
1,336
176
332

61,224

14

$ 142,185

71.6
8,722

$ 146,813
76.0

65.1
$

6,863

$

1,806

Earnings and Expenses of Federal Reserve Bank of Minneapolis
EARNINGS
1928
490,752
609,535
512,433
7,763
89,821

Discounted bills
Purchased bills
U. S. Securities „
Deficient reserve penalties
Miscellaneous

$

1926
310,424

1927
192,216
360,293
707,599
13,404
116,519

405,511
723,348
16,473
166,577

Total earnings

.-$ 1,710,304

% 1,390,031

Current expenses

... 1,000,474

1,048,746

Current net earnings
Additions to current net earnings
Deductions from current net earnings:
Bank premises—depreciation
Furniture and equipment
All Other
_

. . 709,830
.$
.
_
331,879

—

Total deduction s

_

341,285
48,509

$

1,063,757
558,576
79,773
166,272
20,870
3,174

71,982
10,784
10,951

91,982
32,026
302,997

.
- . $ 427,005

Net earnings available for dividends, surplus
and franchise tax
Distribution of net earnings:
Dividends paid
Transferred to surplus account
-..
Franchise tax paid U. S. Government...

%

$ 1,622,333

$

93,717

$

190,316

614,704

296,077

448,033

181,203
43,350
390,151

180,726
11,535
103,816

187,609
26,043
234,381

129,360
28,624
357,849
79,065
444
210
1,112
7,446
28,058
23,137
27,494

135,681
25,958
357,223
80,091
568
288
824
7,289
35,222
22,596
30,701

29,102
85,643
9,391
19,562

28,246
82,713
4,540
19,762

5,304
19,972
61,876
8,415
13,391
25,322
19,901
32,468

5,816
23,277
64,373
8,437
14,091
25,568
19,725
34,810

977,972

$ 1,013,146

$ 1,027,799

20,992
1,510

34,117
1,483

33,597
2,361

$ 1,000,474

$ 1,048,746

$ 1,063,7-57

CURRENT EXPENSES
Salaries :
Bank officers
$ 117,503
29,962
Special officers and •watchmen
350,452
Clerical staff
65,635
All Other
687
Governors' conferences
587
Federal Reserve Agent's conferences
1,150
Federal Advisory Council
6,793
Directors' meetings
20,146
Traveling expenses*
18,931
Assessment for Federal Reserve Board expenses...
27,839
Legal fees
'.
Insurance (other than on currency and security
30,899
shipments)
86,306
Taxes on banking house
7,656
Repairs and alterations, banking house
17,370
Light, heat and power ....
90
Rent
5,120
Telephone
17,817
Telegraph _
63,880
Postage
_ _
8,399
Expressage
_
14,163
Insurance on currency and security shipments19,370
Printing and stationery _
19,403
Office and other supplies
47,814
All other expenses
$

Total exclusive of cost of currency
Federal reserve currency (including shipping
charges) :
Original cost
Cost of redemption
Total current expenses

-

REIMBURSABLE EXPENSES OF FISCAL AGENCY DEPARTMENT
Salaries
All other expenses

$
~

-..—

13,640
6,212

13,038
6,911

12,270
5,270

19,852
$ 19,949
$ 17,540
*Other than those connected with governors' and agents' conferences and meetings of the directors and of the Advisory Council.




15

DIRECTORS AND OFFICERS
FEDERAL RESERVE BANK OF MINNEAPOLIS
JANUARY 1, 1929
DIRECTORS
Class A
J. C. BASSETT KARL J. FARUP
PAUL J. LEEMAN

-

Aberdeen, S. Dak.
Park River, N. Dak.
Minneapolis, Minn.

1929
1930
1931

-

1929
1930
1931

Helena, Mont.
Eau Claire, Wis.
St. Paul, Minn.

1923
1930
1931

Minneapolis, Minn.
St. Paul, Minn.
Menominee, Mich.

Class B
N. B. HOLTER JOHN S. OWEN
PAUL N. MYERS

-

Class C
J R. MITCHELL
.
HOMER P. CLARK GEO. W. McCORMICK

OFFICERS
J. R. MITCHELL, Chairman and Federal
Reserve Agent.
HOMER P. CLARK, Deputy Chairman.
CURTIS L. MOSHER, Secretary, Board of
Directors and Assistant Federal Reserve Agent.
FRED M. BAILEY, Assistant Federal Reserve Agent.
OLIVER S. POWELL, Statistician.
ANDREAS UELAND, Legal Counsel.
SIGURD UELAND, Assistant Counsel.

W. B. GEERY
B. V. MOORE
- HARRY YAEGER
FRANK C. DUNLOP
GRAY WARREN
L. E. RAST - H. C. CORE
HARRY I. ZIEMER
A. R. LARSON -

Governor
Deputy Governor
Deputy Governor
Controller
Cashier
Asst. Cashier
Asst. Cashier
Asst. Cashier
Ast. Cashier

MEMBER OF FEDERAL ADVISORY COUNCIL
THEODORE WOLD, Vice President, Northwestern National Bank,
Minneapolis, Minn.

HELENA BRANCH—(MONTANA)
DIRECTORS
T. A. MARLOW
HENRY SIEBEN
R. E. TOWLE
R. O. KAUFMAN
C. J. KELLY

Helena,
Helena,
Helena,
Helena,
Butte,

1929
1929
1929
1930
1930

Mont.
Mont.
Mont.
Mont.
Mont.

OFFICERS
R. E. TOWLE - - Managing Director
H. L. ZIMMERMANN
Cashier




A. A. HOERR
T. B. WEIR

Asst. Cashier
Legal Counsel


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102