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

January 10, 1941.
To t h e

Sto c k h o ld e rs

F e d e r a l R eserve B a n k

of th e
of

M in n e a p o l is :

We are pleased to present a comparative statement of condition
of the Federal Reserve Bank of Minneapolis at the close of business
December 31,1940, and December 31, 1939, together with compari­
son of earnings and expenses and volume of operations in principal
departments of the bank, and other pertinent data for the years
1940 and 1939.
Respectfully submitted,

President.

STATEMENT OF CONDITION
ASSETS
Dec. 31,1940
$311,096,117.47
Gold Certificates on Hand and Due from U. S. Treasury----331,923.27
Redemption Fund—F. R. Notes----------------------- -----------6,576,020.77
Other Cash.........................................................................

Dec. 31,1939
$258,566,127.10
219,218.21
9,267,700.13

Total Reserves.......................................................... - .$318,004,061.51

$268,053,045.44

Bills Discounted:
Secured by U. S. Government Obligations, Direct and
Guaranteed............ ............................................ $
Other Bills Discounted........................... ....................

109,250.00
107,281.08

$

50,000.00
215,837.19

Total Bills Discounted........................................... $

216,531.08

$

265,837.19

Industrial Advances........................................................... $

218,577.11

$

742,802.12

U. S. Government Securities, Direct and Guaranteed:
Bonds ........... ............................................. ................ $ 36,611,000.00
Notes........................................................................... 25,636,500.00

$ 36,677,000.00
30,764,000.00

Total U. S. Government Securities, Direct and
Guaranteed................. .................................. $ 62,247,500.00
Total Bills and Securities...................................... $ 62,682,608.19

$ 67,441,000.00
$ 68,449,639.31

459.65
1.513.500.00
19,555,657.42
1.367.008.01
1,395,171.19

480.53
1,316,500.00
20,794,963.50
1,395,854.45
1,622,275.24

Total Assets................................................................ $404,518,465.97

$361,632,758.47

Due from Foreign Banks................................................. ....
F. R. Notes of Other Banks....... ........................... .............
Uncollected Item s................ - ............................................
Bank Premises....................................................................
Other Assets .—.................................................................

LIABILITIES
Federal Reserve Notes in Actual Circulation....................... $158,709,015.00

$141,427,335.00

Deposits:
Member Bank—Reserve Account................................ $174,476,119.29
U. S. Treasurer—General Account............................... 22,856,979.54
Foreign Bank............................—
................................ 17,048,559.62
5,376,777.54
Other Deposits.............................................................

$154,787,739.93
24,451,701.64
9,346,174.34
6,105,600.19

Total Deposits...................................... ............... $219,758,435.99

$194,691,216.10

Deferred Availability Items................................................ $ 16,343,592.98
81,540.18
Other Liabilities.................................. ..............................

$ 16,361,873.70
86,653.27

Total Liabilities...... .................................................... $394,892,584.15

$352,567,078.07

CAPITAL ACCOUNTS
Capital Paid In.................................................................... $ 2,974,500.00
3,152,420.27
Surplus (Section 7).............................................................
1,000,298.87
Surplus (Section 13b)............................... .........................
2,498,662.68
Other Capital Accounts........................................................

$ 2,931,150.00
3,152,420.27
1,000,683.96
1,981,426.17

Total Liabilities and Capital Accounts......................... $404,518,465.97

$361,632,758.47




EARNINGS AND EXPENSES
Earnings from:
Discounted Bills .......................................................... $
Purchased B ills............................................................
United States Government Securities............................
Industrial Advances
Commitments to make Industrial Advances.
All Other ..................................................

1940

1939

2,755.97
1,237,338.58
15,264.51
573.39
9,570.48

1,643.97
11.08
1,069,781.82
50,206.13
1,294.52
11,662.12

1,265,502.93

$ 1,134,599.64

Expenses:
912,702.80
Assessment for Expenses of Board of Governors of the
Federal Reserve System.............................................
Federal Reserve Currency:
Original C ost................................................ ............
Cost of Redemption....................................................

$

901,074.05

38,397.55

36,796.66

28,214.89
5,619.03

30,751.78
6,116.56

984,934.27

Total ......................................
Deductions from Current Net Earnings:
Losses and Reserves for Losses on Ii
Special Reserves and Charge-Offs c
All Other ................................... .

280,568.66

$

159,860.59

$

139,647.90
7,579.28

417,203.15

$

147,227.18

499.00

Additions to Current Net Earnings:
Profits on Sales of U. S. Govemmer
All Other ......... .......... .................

974,739.05

363,420.92
53,782.23

...$

$

$

33,000.00
100,000.00
654.82

...

3,020.81

Total ........................... ..........

-$

3,519.81

$

133,654.82

Net Additions to Current Net Earnings.

-$

413,683.34

$

13,572.36

694,252.00

$

173,432.95

Dividend Paid .......... .........................
Transferred to Surplus (Section 13b).
Transferred to Surplus (Section 7)___

177,400.58
— 385.09
517,236.51

174,905.39
— 479.02
— 993.42

SURPLUS ACCOUNT (SECTION 7)
Balance at Close of Previous Year._......................................$ 3,152,420.27
517,236.51
Transferred from Profits of Year........................................
517,236.51
Transferred to Reserves for Contingencies..........................

$ 3,153,413.69
— 993.42

Balance at Close of Year................................................$ 3,152,420.27

$ 3,152,420.27

SURPLUS ACCOUNT (SECTION 13b)
Balance at Close of Previous Year................ ..................... $ 1,000,683.96
Transferred from Profits of Year.........................................
— 385.09

$ 1,001,162.98
—. 479.02

Balance at Close of Year................................................$ 1,000,298.87

$ 1,000,683.96




VOLUME OF OPERATIONS IN PRINCIPAL DEPARTMENTS
1939
1940
Loans and Discounts:
Bills Discounted:
Applications.......................................
Notes Discounted...... .........................
Advances Made.................................

Number

Amount (In
Thousands)

Number

Amount (In
Thousands)

109
181
73

2,391
580
1,728

77
99
69

1,142
99
1,037

43

403

25

300

34

143

23

151

Currency and Coin:
Currency Received and Counted...... .......... 43,614,208
32,509,169
Coin Received and Counted........................ :

188,644
3,631

40,373,251
32,534,940

179,720
3,626

Industrial Advances:
Advances Made.................................
Commitments to Make Industrial
Advances ..................................

Check Collection:
467,127
U. S. Government Checks.......................... 3,460,693
68,489
Work Relief Checks................................... 2,396,000
29,879,253 5,363,619
Other Checks............................................ !
Noncash Collection:
689,479
154,159
City Collections—Grain Drafts.................
40,166
87,265
Other City Collections...............................
74,130
52,886
Country Collections...................................
Coupon (except Government) and Country
34,366
33,659
Security Collections............................
United States Government Coupons Paid:
Coupons from U. S. Government Direct
Obligations........................................
Coupons from Issues of Other U. S. Gov­
ernment Agencies...........................—
Issues, Redemptions and Exchanges by
Fiscal Agency Department:
U. S. Government Direct Obligations........
Other U. S. Government Agencies..............

3,188,622
452,846
2,853,855
80,499
28,535,138 4,967,932
715,385
42,955
80,179

139,028
122,714
61,566

39,184

28,349

328,295

9,287

340,868

9,924

178,070

2,444

242,421

2,841

152,061
13,281

239,450
9,956

136,048
36,883

274,177
50,423

Transfers of Funds................................... .......

28,929 2,208,411

28,202 1,985,824

Safekeeping—Member Banks:
Amount of Securities Held in Custody for
Member Banks on Last Day of Year....
Number of Coupons Cut from Securities
Held for Member Banks.....................

288,280

312,262

213,602

Purchase and Sale of Securities for Account of
Banks Located in the Ninth Federal Re­
serve District............................................

5,030

226,686

165,125

PERSONNEL
December 31, 1940
Head Office
Number of Officers and Employees at End of Year:
Officers.....................................................
10
Employees .......................... .....................
407



7,018

170,887

Helena Branch

Total

3
35

13
442

MEMBER BANES
NINTH FEDERAL RESERVE DISTRICT
1940
Number of Member Banks at end of Year:
National Banks............................................. _.............
372
State Banks.................................................................
88

1939

460

468

Changes during the Year 1940:
New National Banks Organized.....................................
State Banks Admitted to Membership_____ ________
_

387
81

1
9
10

National Banks Consolidated with Other National Banks....
National Banks Succeeded by Nonmember State Banks......
National Banks Absorbed by Other National Banks..............
National Banks Absorbed by Nonmember State Banks------National Banks Absorbed by Member State Banks_______
National Banks Liquidated........................... .......................
State Member Banks Withdrawn..........................................
Net Decrease in Number of Member Banks.................

1
7
2
3
2
1
2
18
8

State Banks which became Members during the Year 1940:
The Bark River State Bank, Bark River, Michigan
The State Savings Bank of Manistique, Manistique, Michigan
The Citizens State Bank of Ontonagon, Ontonagon, Michigan
State Bank of Hawley, Hawley, Minnesota
State Bank of Sleepy Eye, Sleepy Eye, Minnesota
Merchants Bank of Winona, Winona, Minnesota
Custer County Bank, Custer City, South Dakota, Custer, South Dakota
Union Savings Bank, Sioux Falls, South Dakota
The Kraft State Bank, Menomonie, Wisconsin
Number of Member Banks in each State or part of State, in the Ninth Federal Reserve Dis­
trict at end of Year 1940:
National Banks State Banks
Total
Michigan...................................................
26
14
40
Minnesota.................................................
188
21
209
Montana .................................. ................
42
25
67
North Dakota ..........................................
45
0
45
South Dakota ....................— .................
40
23
63
Wisconsin.................................................
31
5
36




372

88

460

DESCRIPTION OF NINTH FEDERAL RESERVE DISTRICT
Land Area
(Square
Miles)

1940
Population
(Preliminary)

Michigan (northern peninsula).............................

16,691

321,000

Counties of—
Alger
Keweenaw
Baraga
Luce
Chippewa
Mackinac
Delta
Marquette
Dickinson
Menominee
Gogebic
Ontonagon
Houghton
Schoolcraft
Iron
Minnesota.............................................................
Montana ...............................................................
North Dakota................ .......................................
South Dakota.......................................................
Wisconsin (northern part)...................................

80,858
146,131
70,183
76,868
23,273

2,786,000
554.000
640.000
641.000
577.000

414,004

5,519,000

Counties of—
Ashland
Barron
Bayfield
Buffalo
Burnett
Chippewa
Douglas
Dunn
Eau Claire
Florence
Forest
Iron
La Crosse




Lincoln
Oneida
Pepin
Pierce
Polk
Price
Rusk
St. Croix
Sawyer
Taylor
Trempealeau
Vilas
Washburn
Total

NINTH FEDERAL RESERVE DISTRICT

DIRECTORS
W alter C. C off ey ,

Dean and Director, Department of Agriculture
University of Minnesota, St. Paul, Minnesota
Chairman of the Board and Federal Reserve Agent
B. S h ep a rd , President
Finch, Van Slyck & McConville
St. Paul, Minnesota
Deputy Chairman

R oger

P. C l a r k , Chairman of the Board
West Publishing Company
St. Paul, Minnesota

P. F u n k , President
La Crosse Rubber Mills Co.
La Crosse, Wisconsin

H om er

A lb e r t

W. D. C o c h r a n , President
Cochran Freight Lines
Iron Mountain, Michigan

F. D. M c C a r t n e y , Vice President
First National Bank
Oakes, North Dakota

President
Northwestern National Bank & Trust Co.
Minneapolis, Minnesota

J. R. M c K n ig h t , President
Pierre National Bank
Pierre, South Dakota

S h i r l e y S. F o r d ,

J. E. O ’ C o n n e l l , President
Eddy’s Bakeries
Helena, Montana

OFFICERS
J. N. P e y t o n , President
0 . S. P o w e l l , First Vice-President
H . I. Ziem er, Vice-President and Cashier
E. W. S w a n so n , Vice-President and Secretary
H . C. C o r e , Assistant Cashier
A . R. L a r s o n , Assistant Cashier
Wm. E. P e t e r s o n , Assistant Cashier
O t is R. P r e s t o n , Assistant Cashier
T. H . H o d g s o n , Assistant Counsel
A . W. M i l l s , Assistant Auditor
Sigurd U e la n d ,

Counsel

MEMBER OF FEDERAL ADVISORY COUNCIL
E. W a k e fie l d , President
First National Bank & Trust Co.
Minneapolis, Minnesota

L ym an

HELENA BRANCH— (MONTANA)
DIRECTORS
A l e x C u n n in g h am ,

Vice President-Treasurer
Western Life Insurance Company
Helena, Montana

H. D. M y k ick ,
Square Butte, Montana

P. B. M c C l i n t o c k , Cashier
Farmers National Bank
Chinook, Montana

P e t e r P a u ly ,




President
Deer Lodge Bank and Trust Co.
Deer Lodge, Montana

R. E. T o w l e , Managing Director

OFFICERS
R. E. T o w l e , Managing Director

A. A. H o e r r , Cashier
C. J. L a r s o n , Assistant Cashier

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