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OOirrHOLLER’S HSPOHT
m m a x L riservs bahk o * mihheapoxjs
j
I THB TSAR
Dfi
1 S 2 7,




To the Directors
T a results of our 1927 operations are offered la tbs
fe
fora of statements and tables covering the various functions perferaed„ ill natters affecting the profit accounts of the Basic and
the reasons for expansion or contraction in any of the serricet
which we perform are explained in the writers of each particular
fmetiono

Connents and tables are mostly confined to Minneapolis,

the Helena statements and tables tasking

a separate reporto

Some progress has been made in improving our operating
methods during the year and the results should be more apparent In
192So

The expense total has not been grefctly reduced although there

is adequate rente* for the additional costs in seme of the tactionso
It it evident that tome expense items will be lower in 1928 than for
1987 but the site of the staff needs considerable reducing to offtet
1928 adjustments* The amount of ear yeerly t m t it entirely tec
high end this natter should get considerable attention0
All the operations of the bank are being efficiently per­
formed at thit time and the records indicate the true condltlcno
HespectftUy ttitaittcd.




Accounting
Comments ................... *.............. 65-66
Number of employees and cost of units............. 66
Member bank balances........ ..... .............. 68
Transfers and Code Unit.......................70-71
Administration Costs.....................*.... .......37
Auditing
Comments.................. ........ ......... 44-45
Batik Premises
Minneapolis building..... ................ ..26
Helena building................................. 27
Depreciation charge-offs and reserves........... ..28
Comments........................ ...... ...... 29-31
Cafeteria................ ..... ......... .......... 38
Closed Banks
Comments... .................... ..... ..... ....50
Cost of function and number of employees.............50
Collection expense allocated to various banks.....51-67
Collateral
Comments... ............................. ..... 64
Collections
Bon-C&sh Collections
Comments..... ................. ..............f78
Cost, number of employees and number, of items
handled................................... 74
Comparative statement, number of items received
for collection.
.......... .74
Check Collections - ©pansit Department...»*« -... 75-82
Coupons
Comment s........ ......... .............. *...... 63
Cost of function, number of employees and voluae
of work handled......... ........ .............63
Currency and Coin
Comments........... .... ........58-59
Humber of shipments received and sent................59
Original cost, cost of redemption and shipping
charges....... ...... ...................... ..59
Functional costs, number of employees and volume
of work handled................ ............ ...60
Amount of currency reoelved from and shipped to
member and non-member banks.......................,61
Interdistriot movement of P. K. Rotes.... ..........62
Coin shipments received and sent...... ......... ..59
Custodies...... ................... ...............
Deficient Beserve Penalties... *....... ........ .

.64
68

Discounts
Comments....... .......... .............. . .45-47
Cost of function, number of employees and
volume of work handled..*..... ............... .48
,
Statement of operations............. ..... .,.... . .49
Bates.
.... ................. 12




Dividends paid sine* organisation.................

C

"'amines
Comparative statement 1527-1925............... 11
Gross ournings and : : - . h y averages.*.......... 12
.u'bl
Average Rates on earring assets..............
12
Comments......... ...................... 13-16
Sxper.333
Comparative statement 1S27-1926-1925.......... 17
Ccnur.er.es,,.....................................................• • ...«.* * 18-24
Administration Costc-Gc-ner^l overhead.*........ 37
Coupfirbtivo Statement by ^'incticns-Minnjapolis..• 39
Comparative statement by Functions-Helena..... *100
Reimbura?.blo expenditures.................... 25
Failed Banks................................. 60*57
Federal Reserve Agent's Funoticns
63
Comment o.................. ...............
Number of employees and expenses of various
Units............................... 83-64
Bank Examinations. *...................... 85-90
.
Federal Reserve Notes..................... 91-95
Federal Reserve Club* •...........................

40

Federal Reserve Notes
Comments............................. .
91-92
Statistics.............................. 93-95
Interdistrict Movement.................. 62
(See Also Currency)
Fiscal Agency Functions
Comments*............................... 96-97
Franchise Tax paid since organisation***•.........0. 6
Functional Reports
Comparative coat of various funotions-Min-eapolis.39
Comparative oost of various functione-Helena... 100
Administration costs-General overhead......... 37
(Functional reports will also be found under
department headings such aa Currency, Dis­
counts, etc.)
Furniture and Bquipmftnt
Amounts charged out of earnings since organiza­
tion........... ........ ............ .
25
Comments.... *•.......................... 32-53
General Service Functions
Coxor.ents....... ............ .
41-42
Number of employees and oost of various units*.• 43
.
Oeneral* Overhead - Administration Costs............

57

Gold Holdings
Reserve Position*»...................... . S7-68
Amount held by bank and F* R» Agent........... 69
Helena Branch
Comments.................. ............... 98-99
.Comparative functional expense report**.*.... * 100
Bank premis*e»«*.................. .
27-28




Investmenta0o00»oo*«»®»a„.. ..................... 69
Leased Wire....„.... ......... ..................... 72
Liabilities, Comparative Statement 1927-1926.... ....... 2
Member Banka
Reserve balances........... ....................68
Deficient reserve penalties...................... 66
Changes in membership... ......... ........... 87*90
Non-Cash Collections....................*......... 73-74
Personnel
Comments...... ......... .......................34
Coat of personnel function............ ..35
Changes in staff during 1927..................... 35
Welfare and cafeteria - comments...... -........•••38
Monthly basis of salaries by functions...............36
Humber of employees and expenses by functions........35
Federal Beserve Club...................... ..40
Profit and Loss
Statement in detail for year 1927..... ........... 3
Summary report for year 1927. ................... .. 4
5
Account since organisation.......... ......... .
Dividends, surplus and franchise tax....... ..... . 6
Comment s....... ............ ................. 7-10
Beimbursable Expenditures............. .......... .
Reserve Position..°

.25

............ ............ 67-68

Resources, Comparative statement 1927-1926.............. 1
Salaries
Monthly basis by functions....................... o. .36
.
Securities
Collateral unit............................ *.... 64
investments held. •...............................69
Surplus
Detail statement since organization............. .
Telegraph........... ............................

6

72

Transfers of Funds
Comments... ............... ..... ...... ..... . 70
Functional costs, number of employees and volume
handled........ ....................... ......71
Transit Functions
Comments.. ........................... ....... 75-76
Costs, number of employees and volume handled..... .77
Statistics......... ......................... 78-82
Welfare

38

COMPARATIVE STATEMENT OF RESOURCES
FBDERIL RjSSRYB BAMK OP MINNEAPOLIS AND HSLERA BR ANCH
Deoqabor 31, 1927.

December SI, 1926.

Gold Redemption Fund - F. R. Notos1,422,991<>67
Gold with Federal Reserve Agent - - - - - - - - Gold Settlement BUnd - - - - - - - - - - - - - - Gold Coin ................... - - - - - - - Gold Certificates - - - - - - - - - - - ---- - -

$ 2,075,829*64
49,728,666.00
16,650,517.73
5,615,675*00
1,556,500.00

60,558,090.00
20,463,291*01
3,222,546.00
5,650,500.00

Legal-tender notes - - - - - - - - - - - - - - - Silver certificates - - - - - - - - - - - - — 8tandard silver dollars - - - - - - - - - - - - -

632,221»50
3,147,106 o00
249,756.00

466,117.00
2,516,602.00
569,761.00

lAtion&l bank notes- - - - - - - - - - - - - - - Federal Reserve bank notes - - - - - - - - - - - Subsidiary silver, niokels and oents - - - - - - -

1,021,500000
2,000*00
199,792*10

664,100.00
600*00
217,972o06

F. R* Rotes of other F. R. Banks - - - —
- -- Our Federal Reserve notes on hand - - - —
--Mutilated F. R. notes forwarded for redemption - -

1,052,160*.00
4,878,790.00
807,600*00

582,050*00
5,174,195,00
997,600*00

Bill* discounted ............................
Meaiber banks collateral notea- - - - - - - - - - Bills bought in open market- - - - - - - - - - - F&rtloipation in investments through foreign brinks
U* S. Government securities- - - - - - - - - - - Kunioipal warrants - - -- - - - - - - - —
— Federal Intermediate Credit Bank Debentures- - - -

1,481,495„06
423,800000
18,310, 951 *40
7,661067
23,899,711oOO
120,000000
500,000*00

2,242,422*09
1,795,642.00
12,614,674*84
17,059,211o00
120,750o00
500,000° 00

Premium on U. S. securities- - - - - - - - - - - Premium on Federal Into Cr. Bank debentures- - - Interest accrued-—
current....... , - - - ...............
Furniture and equipment- - - - - - - - - - - - - Dividends accruedTransit items - - - - - - - - - - - - - - - - - Sxohanges for clearing house - - - - - - - - - - Checks and other cash items- - - - - - - - - - - -

3,608o44
556*20
70,780o75
1,048,746.15
I0,784o93
180,726.51
13,148,801o41
900,611,, 27
80,530*11

7,950*69
578*00
62,426.66
1,065,757*20
20,870*48
187,609.25
12,5o9,519.58
359,485<,64
241,792.13

Banking House:
Land ----------------------------------Buildings including vaults - - - - - - - ---Fixed machinery and equipment - - - - - - - - -

505,520066
1,918,281.50
636,162.54

605,520.66
1,975,720,14
636,162o54

Overdrafts----- — — — — - ------Coupons paid before maturity - - ------------ Deferred charges--------- -------- - — - —
Claims account closed or suspended banks - - - -Property acquired under foreclosure- - - - - - -Suspense aooount temporary investments - - - - - Due from foreign btvnks - - - - - - - - - - - - - Difference account - - - - - - - - - - - — - - -

938o00
51*22
19,625*76
2^580,695*42
42,908.46
779,498o01
14,634c32
639 a62

55.57
19,396.71
3,384,450.52
49,260*26
181,567.26

Fiscal Agoncy expenses, reimbursable -- - - - - •ar Finance Corporaticii expenses, reimbursable - Reimbursable expenditures - postage - - - - - - -

1^762^94
272n25
195*05

2,179053
120^60
194,26




468.67

COMPARATIVE STATEMENT OF LIABILITIES
FEDERAL RESERVE BAEK OF MINNEAPOLIS AND HELENA BRANCH
December 31 c 1927
Federal Reserve notes outstanding - - - - - - - - -

66f9lOc658oOO
l

December 31, 1926
$

76,062,890P00

Member banks ~ Reserve account - - - - - - - - - - 54*723,922.93
Funds of olosed banks held for reoeivers
and others - - - - - - - - - - - - - - - - 112*105e80
U* S. treasurer - General account - - - - - - - - - l,7700
529o94
Due to foreign banks - - - - - - - - - - - - - - — 1380847o84
Non-member banks - Clearing account
43,739*46
Offioers9 checks
197 0
090c 00
Federal Reserve drafts
- - 31c
000o00
Other deposits • • o « o ~ o o « n u L J oo*oa><t.««®
20309o68

50*756,122*20

Government transit items - - - - - - — ~ - - - - ~
All other transit items - - - - - - - - - - - - - - -

176,379o56
12^681,820»94

161,423<>09
12,848e793026

189,936 074
l#333#
0llo03
900p
998.89
29r026 12
92,791c75
20,000*00
9,633 ©47

Aoorued taxes other than franchise tax unpaid - - - - Capital stook suspense account - - - - - - - - - - - Sundry items payable - - - - - - - - - - - - - - - - Suspense account general - - - - - - - - - - - - - - -

83,702o14
8,100*00
7,613e68
12 p913»10

81*044*90

Discount on U. So securities
Unearned discount - - - - - - - - - - - - - - - - - - -

18,660o79
63,688*11

39,506*25
67,026*84

Reserve for depreciation on U. S. bonds - - - - - - Reserve for possible lossess account failed banks
Reserve for depreciation on fixed machinery and
equipment - Minneapolis
Reserve for depreciation on fixed machinery and
equipment - Helena
Reserve for depreciation on building - Minneapolis - Reserve for depreciation on building - Helena - - - -

3,444*00
604a378e39

3,444*00
700,000*00

136,434023

64,428088

7,985*33
71,331o26
70,518c74

6 ,374©43
38,814*40
67,818*74

Special credit account closed banks - - - - - - - - - - 1561130 26*69
Discount earned - - - - - - - - - - - - - - - - - - - Interest earned - - - - - - - - - - - - - - - - - - - Penalties on deficient reserves - - - - - - - - - - - Miscellaneous earnings - - - - - - - - - - - - - - - Profit and Lo se - - - - - -

15,738*55
5,096*33

1*543,570.77

552 3509o01
754,339*91
130
404o64
69-,777o93

715,935*16
862p789000
160
473ol2
27,136037

38,233o91

76,996o94

Capital stock paid in
3,0093
400o00
027o95
Surplus........ .............- ............. - 7,527g

3,063,750*00
705QO,985.63

S 161,494*705.56

$ 166,149,438*99




2

FEDERAL BES3HV2 BASK 07 KIHKEAPOLIS •
of T ^ o f l^ H T ^ M ' X ro o u n 'i for 1927 ,
Disoount •&med on bills discounted - Minneapolis * » * • • . $
»
Disoount earned on bills discounted - Helena Branch. « • 0 « •
Disoount earned on bills purchased • • • * . .
•
Interest earned on United States securities • • • • • • • • •
Interest earned on Federal Intermediate Credit Bank Debentures
Interest earned on Municipal Warrants • • • • • • • . . • • •
Interest received on past due paper of olosed banks . 0 . . .
Interest earned on delayed wire transfers « . • . .........
Income from Ranking house - Helena Branch •
Deficient reserve penalties - Minneapolis....... .
Defioient reserve penalties - Helena Branoh •
Het profit on U. S. Securities sold .....................
Participation in transactions with foreign banks ....... »
Sale of waste paper....... . . .......................
Service charges on collection items returned - Minneapolis* •
Service eharges on oolleotion items returned - Helena 0 • . e
Monthly letters sold. • . • ...........................*
Clearing house fines.......... ........ ........... . .
Vet oommissions on hail insurance ................... . •
956,938.00
Expense Ourrent - Minneapolis....................... .
Expense Ourrent - HeJena.......... ....................
91*808*10
Furniture and equipment.......................< . . . • •
10,785.95
Beserve for depreciation on fixed machinery and equipment - .
Minneapolis . . o • • . .
62,005.56
Helena Branoh . .......
1,610*90
Reserve for depreciation on building - Minneapolis . . . . .
5,666o8S
Reserve for depreciation on building - Helena Branoh. . . . .
2,700.00
General Differences - Minneapolis .......................
6o95
Tellers and ooupon differences - Minneapolis..............
414.48
18.82
Clearing differences - Minneapolis . » .......... . . . .
Collection differences - Minneapolis. . ..................
1059
Transit and return item differenoes - Minneapolis.........
116.89
Transit and return item differenoes - Helena Branoh . . . . 0
Tellers and ooupon differenoes - Helena Branoh. • • . . . • »
124o88
Recovery of expenses incurred in oonneotion with olosed bonks
Sales and allowances of old furniture and equipment .......
Transit items whioh oould not be charged back to our endorsers account failed banks ............................. .
6,509.00
Compromise settlement of claim made by Citizens State Bank,
St. Charles, Minn, on transit item, acoount olosed banks .
82.50
Settlement made with Agricultural Loan Agency of the var Finance
Corporation on account of negligenoe in handling remittance
sent us by State Bonk of Argyle, Vinn. to apply on note held
by War Finance Corporation................. .
600.00
Compromise settlement with 8heldon Bros, on account of agreement
to divide crop proceeds for year 1926. •
600.00
Drafts drawn by Farmers State Bank, Hingham, IJont. on Metropolitan
Natl. Bank, Minneapolis, Minn, sent us by our representative
unpaid and unoollooted acoount of suspension of formers State
2,076.93
Bank, Hingham, Mont........................ .
Cheoks returned to us account of forged endorsement - F. W.
Woolworth oheoks - lawsuit pending in New York.........
245.04
Recovery of transit items previously charged off..........
Difference between amount allowed and amount rocovered on
unourrent coin.......... ....................... .
Recovery of protest fees on transit items account closed banks
Net profit on sale of U. S Securities...................
.
Adjustment allowed Jo 0. Robertson & Co. on account of missing
parts of two mechanical coal stokers which we sold them in 1926
45.00
Dividend on Equitable Life Assurance Sooiety Policy #6208673 Employees group life insuranoe (1926 proportion) . . . • •
Interest paid on delayed collection credits • • • • • • • . .
47o07
Settlement made with Member Banks for lost coupons. . . . • .
7.44
Recovery of L. L.Coupons matured Deo. 15,1927, previously charged
off on aooount of having be^n paid several years prior to maturity
Balance due from closed bank representative on acoount of advance
for expenses August 4, 1925 ........... ............ .
55 00
Dividends paid .......................................
180,726o51
Transferred to Surplus P\ind(10£) of balance of net earnings
II,535ol0
Franchise tax paid to United States Government - (90^ of b . a i o
:l:C
of net earnings).......... . . ................. ,
103,815o90
5TTErCTRSTHr




$ 179,460.89
12.756.17
360,292.96
707,598.94
8,808.97
594.78
37,537.82
69.84
15.00
9,725,23
5,681.41
46,795.46
22.268.17
187o19
124.04
18.75
26 13
97.00
1,179.68

7.48
51,295.02
880.66

20.33
91.25
4.18
14,922.20

1,281,, 54

8.72

3

FBOSSAL HBSBRYB B A M OF IHNNBAPOMMI AND HBLPA BRANCH

SUHSART RJ3PQRT OF EAR3TOI0S, ttPKHSBS AMD
PROFIT AND LOSS ACCOUNT DPRIHG 1927

Burnings
Current Expenses
Current Net Earnings

# 1d390p081<j
49
X0
0480
T46ol5
$ HlotMoU

Additions te Current Net Earnings - - • —

- -

Deductions t r m Current Net Earnings*
2% Reeerre for depreciation
o , Buildings t
n
Minneapolis Building - —
b
---- . . .
Selena Building
l j f Reeerre on fixed machinery and equip­
Ot
ments
Minneapolis Building - - - - - - - - Helena Building
------------- Furniture and Equipment
--------All Other - -

-

48.809.91

50665o68
20
700o00
820
006o38
1p o
610 90
100
783o
93

--------- 10^951 o57

Total deductions - - - - - - - - - - - - - - -

*

Net Saminge available for dirldends, surplue
and franchise tax - - - - - - - - - - - -

* 2**.077o81

Dividends Paid - - - - - - - —

I

-

Transferred tO Surplus Aoconnt

180#728oCl
ll,635al0

Franchise Tax paid United States Government- - ~




93f)71Toli

108^818090
f

290o
Of7oBl

i

FUDKRAL m i m w B M K OF lOTrSAi'GLI!; A’ D HBLKHA BRA'TCH
J
STATBMSTf OP EAPJ'INGS, BCi^TSSS A*T PROFIT A? D LOSi: ACGOWT
D
!
' ... . T' l" TIimi^
.T
” “ '
"

Sarnings
Current Expenses - ® - « • •

m

«

o o o o u m

#26,137,061o
10,072,060*

« i
»«

Currant ^
let Earnings* u c o r d o u o o o i o o o o a o o *
i

$16,065,001.

ADDITIONS TO CURK3KT niST SAR‘
M?I0S|
Withdrawn from reserve for depreciation o . U« S* Bondsn
All Other m m m m m r n m m m m m m t n e : t m m r n t m + m m m m
TOTAL ADDITIONS t * • *•*»••*= - *»• — •*«*»«»«»
- *
>

143,469*
278,178#
421,154? >

DSPOCTIOIIS FROM C.KRff'T NsST SARNIHGS*
Bank Premises Depreciation • • f « o u t < u o o o - 4a) $ l,013,858o
i »
)
)j
Furniture and Equipment(including $40,00^ for vault
ir New York Life Building)
426,812.
Reserve for possible losses * * • • • - • • • • • • -(b)
700,000*
Reserve for depreciation on U* S* Bonds o » * . » « « * * »
146*915#
Other Real Sstate - ? e ; Building sites
!v
Expense » * * 0 * « « * * * *0COo4O7#
Inoome o * o * * « « « « » «
350800*
?!et Expense • • • • • • - • • • • • • • • •
24,607.
All othor
99,58$*
TOTAL DEDUCTIONS
WT4H',723V
Set Deductions
Het Earnings o c • o
o

« «a«ouc)o«3 « o o « • o o o
*

distribution of * e Barningss
't
Dividends paid.
Transferred to Surplus - - - - - ~
Franchise Tax paid to U S* Gover ment
*

<»)

®

1*990*076*
§14*074,925*

2,368,661#
(o) 7,538,563o
4,167*701*

~ ♦ u .w .w : 1

In addition to t'ds amount #500r000o was transferred from surplus
to reduce book value of building Deoonber 31, 1927* The total of
bank premises depreciation to close of December 31, 1927, therefore
is #1,513,858o

(b) During the year 1927 losses on closed bank paper amounting to
#95,621*61 were charged off* Tho balance of Reserve for possible
losses as of the dose of December 31, 1927, therefore is $>04,37G*39o
(c)

On December 31, 1927, $500,000. v n transferred from surplus to
rs
reduce book value of building leaving a balance in surplus account of
^7,038,563.




11VXD . DS PAtD SI o i ORGA r
)
*
:
I2ATX0?? « BY YSARS
.
x*lo
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
Tots,! '

o
>

57 *719 o87
563,894*19
168,102®97
180,186*21
195r870o65
211*657.03
213-774©01
212,732o6S
202,827o98
193 559o46
107.609• 25.
180,726.61
2 3^8 ,660o 81'

DETAIL STATSiiCT OF SURPLUS ACCOST SINCB ORCAIIIZATIOy

|
n
m
*
D w a b e r 31, 1913
9 from Reserve for. Franohis^ Tax
Sfereh 4, 1919
m to Surplus from Profit and *«o»s
4\sm 30 , 1919
H
n
ii
D#*<tab#r 31, 1919
11
n
«
it
Sm m 30, 1920
n
t»
n
n
December 31, 1920
•t
it
»
n
torn* so, 1 9 a
«
t
»
w
H
Dtliember 31, 1921
n
«
«
II
Dii«Bib«r 31, 1922
n
w
It
«
DftSsmber 31, 1923
n
ti
IT
II
IJaoember 31, 1924
n
M
II
n
December 31, 1925
tt
m
n
H
Dt*«ab«r 31, 1926
II
n
II
m
M > i r 81, 1927
m m cs e* •» « \« » •» o c> e> < e. • a. e * <
m
*
. t 3
t »
Total «►•*»«
t m it
Dsoeaber 31, 1922 Additional franchise tax
£aid for the years 1920 and 1921 « - * 452,423o36
December 31, 1927 ?rith&ra»m from surplus
'5 reduoe book value of building « « - <°500o
lo
*
000o00
a »
9
f
fialftnse la suxplus aooount December 31, 1927 ~ c e o n «

I

37p500«00
6880871.32
688^6?lo62
904,357.40
lf249r399o04
f
lp609,24l*56
1,801a
V06o54
323,12lo95
165p407©67
56p
892el0
11r272®25
12c627o39
4,139o45
26,042*32
11,535o10

TT&ttytoSia

552*423.36

STATEMENT OF TOTAL FRANCHISE TAX PAID SINCE GRGAtflZATIOM
Dosaaber 31, 1916, Trsnafer from Profit and Loss
Difsabsr 31, 1920
*
*
*
Jtms 80, 1111

*

•

•

December 31, 1981
"
”
” ,
December 31# 1922 Transferred on aocount of underpayment
years 1920 and 1921
D**«nbcr31, 1982 Transfer from iVoflt and Loss
M
I
I
H
BHiabsr 31, 1988
«
«
I
I
2>*««aber 81* 1994
n
n
i
i
Dtitobsr 31, 1986
«
a
«
0#8#mber 31, 198$
»
n
*
DcMaberSl, 1927
f»t*l




>

37,600.00
524c233.68
1,284,497.68
X,166(468.98

62(483.36
6X2,028.98
101,460,26
113,646.68
37,268.04
234,380.91
108,815.90
$ T zm m . w

6

PROFIT AND LOSS
Total income for the year 1927 was 11,458,540*84*

The current

transactions of the year brought earnings of 11,590,031*49 to which must
be added $48,609*35 representing chiefly recoveries of expense incurred
in the collection of paper at dosed banks prior to 192? and the propor­
tion of profits taken on United States securities sold in 1927 whioh had
been earned in prior years.
Recoveries of interest and expense from closed banks was very
muoh less than in 1926.

One year ago we obtained 1116,434*12 in past due

interest and $75,863*49 of expense.

For 1927 our recoveries wore

$37,537.22 of interest and $51,295*02 of expense*
On March 16, 1927 we exchanged our Second Liberty Loan bonds
for Treasury Notes Series A-1930-32.

Some of these bonds had been obtained

at a premium and others at a discount.
15,058,750 Seconds was $14,922*20.

Our net profit on the exchange of

These securities having been in poraanent

holdings prior to 1927, we plaoed the profits on the exchange in Profit and
Loss Account.

The Treasury Department in requesting the exchange before the

callable date, November 15, agreed to pay the interest on the bonds from
*
Maroh 15 to May 15. In this nay we obtained $21,905*26 of Interest whioh
m s credited to Miscellaneous Earnings,
From the disposal of old equipment we obtained $880*65.

The 1926

proportion of return premium on our policy covering the lives of employees
•mounted to $1,281054. All other items which comprise our current income
will be commented on in the section of this Report devoted to Earnings.
The total obtained for the year was $264,000 less than the amount
reoeived in 1926, the reduction being approximately the seme as the amount
available for Surplus and Framohise Tax at the end of 1926.

However, lower

expenses and requirements for dividend and depreciation allowances made
possible the transferring of $11,535.10 to Surplus and the paying of
$103,815.90 to the United States as a Franchise Tax.




The complete disposition of our earnings was as follows:

CURRENT EXPENSES
Minneapolis
3019na

$ 956,938*05
91,808.10

§1,048,746.15

Operating costs as given above are $9,316.32 lower at Minneapolis
and $5,694.73 lower at Helena than the similar costs of 1926.

It was ap­

parent at the beginning of 1927 that the savings brought about in 1926
could not be duplicated without radical reductions in the Staff and this
same condition is apparent for 1928.

Elsewhere in this Report the expenses

are classified, comparisons made with the like expenses of former years
and some of the reasons given for the likely trend in 1928.
Miscellaneous Losses assumed during 1927
Transit Items

$6,509.00

On advice of counsel and under authority from the Executive
Committee| losses in connection with transit items sent to a number of
banks which closed were charged off, negligence being apparent on our part.
Claims have been filed by us but there is little likelihood of any reoovery.
The amounts comprising the above total were as follows:
Security 8tate Bank, Hew England', N. D.
Farmers State Bank of Rhame, S. D.
Winner State Bank, Winner, S. D.
Farmers State Bank, Hingham, Mont0
Various other banks

#2,347.91
1,053.00
1,861.62
1,017.60
228.87
16,509.00

Drafts Received from Farmers
State Bank, Hingham, Mont. charged off

$2,076.93

This loss resulted through our representative purchasing drafts
from the Farmers State Bank, Hingham, Montana and sending them to us in
payment of obligations of the Hingham State Bank.

The Metropolitan Na­

tional Bank, Minneapolis, upon whom the drafts were drawn, returned the
drafts on account of the suspension of the Farmers State Bank.
FUBHITURE AND EQUIPMENT
Minneapolis
Bilena

$ 9,669.28
1,114.66

$10,783.93

Under instructions of the Federal H*serve Board, all furniture
and equipment purchased during the year shall be charged against Profit
azidJU>ss at the close of the year.

Our total for 1927 is approximately

what the costs of a normal year should be.

Our requirements for 1928

will be muoJi heavier.



8

BBS
102,006*55
1,610,90

Minneapolis
Helena

$63,616026

One year ago $72,006.35 was added to the depreciation reserve,
this amount inoluding an adjustment for 1926 on aooount of the Federal
Reserve Board having approved the allocation of 1100,000 of architect*s
fees to fixed machinery and equipment.

The normal yearly allontnoe will

jaow be $62,006,36 and represents 10 per oent of the oost cf our Halid
machinery and equipment.

The $1,610,90 charged for Helena represents

the regular allowance made yearly for the last six years.

Total reserves

accumulated to date are $198,439*58 for Minneapolis and $9,696*23 f c
fr
Helena,

Helena reserves are carried on books at Minneapolis,
RESERVE FOR DEPRECIATION OH BANK B m D I N O
$ 8,665063
2,700,00

Minneapolis
Helena

I 8,366.63

For several years past we have had to make revision# of our
depreciation reserve aooount due to changes in the estimated replacement
oost of our building.

Under the System policy of the Federal Reserve

Board, the book value represents replacement value.

On this replaosnent

value the Board allows a reserve to be set up at the rate of 2 per cent
each year.

In December we were authorized to withdraw $600,000 from

Surplus Aooount at the end of the year and to apply this amount in re*
duoing Building Account,

After this entry had been made, our book value

for the building is $l,283,281o50.

The 2 per oent allowance on this

amount for three years is $76,996.89,

As th© amount already reserved

is $71,331,26, we were authorised to charge only $6,665,63 at the close
of 1927, We have, however, brought our building figures nearer- to the
realisable value and our depreciation allowance yearly from now on will
be $25,665o63.
The Helena values and allowances have not changed.

Replacement

oost is fixed at $135,000 and the depreciation reserve now amounts to
$73,218.74,




■

giFFERfflCB ACgQOWf
Minneapolis
Helena

(Debit)

I B58« 51
JL17»42

| 675.93

Of tha Minneapolis total $414*46 consisted of differenoet in
the. oash and coupons.

We had assumed that by installing money oountlng

maohines tha number of errors would deorease,

Jhls hat not baen tha

oase although it has not baen olaarly established the maohines are to
blame*
amount.

Counterfeits to tha amount of $75,00 are included in the above
Included in tha Branch differences is a £100* shortage reported

by the Flfst National Bank, Wibaux, Montana*

The notes fnaa which this

shipment was made were put up by Minneapolis and verified by Halena.
No claim was made against our insurance and .we accepted tha loss.
DIVIDENDS PAID

$180,726,61

The payment for 1927 is the smallest of any year since 1919.
There has baen a net reduction in Capital Stock holdings eaoh year sinoe
1922. At tha oloae of 1927 paid in Capital Stook was $3,009,400 and a
reduction of $64,350 sinoe December 31, 1926.

Dividends paid for 1926

were $187,609.25 a
r.d tha total paid since organisation $2,368,660,81.
SURPLUS AND FRANCHISE TAX
After providing for all expenses and ourrent losses, setting
aside the reserves approved by the Federal Reserve Board and making pay­
ment of the regular dividend, there remained $1 1 5 ,5 5 1 .00 * Under the Law
10 per oent of this amount or tll,5&&«2£) w c added to Surplus Account
fi
and the remainder, $103,£l5f90t credited in the aoeount of the Treasurer
of the United States £8 a franchise tax*
Total 8urplus from Earnings sinoe organisation £7,538,563.05
Total FiyE8h4.se Tax p r f . n s sinoe organisation 4,167,701.20
a.rot
CHARGE AGAINST ACCUMULATE) SURPLUS
After the closing of our btsoks o t Mftenber 31, 1927, a charge
f
of £500,000 was made against Surplus Account and like amount applied to
reduce Building Aooount*

Including the amount transferred fron 1927

Earnings our Surplus is now $7,038,563*05.




COMPARATIVE STAmaHT 07 3R0SS 7.ARHITOB
FEDBRAL RflSBRVB BANK 0? MI?rNAPOLI S AND KSL3STA 3RA2TCH.
Minneapolis
Earnings From

■ - J W g ____

Discounted Bills
179 ,U60.89
Purchased Bills
360.292.95
United States Securities
707.598.96
Federal Intermediate Credit Bank Debentures
8,808.97
Municipal Warrants
59^.78
foreign loans on gold
Deficient reserve penalties
^.723.23
Income from banking bouse
Interest received on past doe paper of closed banks
37.337=22
Interest on noncurrent funds.delayed wire transfers,etc.
I e profit on U„ S securities sold
Tt
“
*5.793.^
Participation in trcnsaotions with foreign, banks
22,268.X7
Sale of canceled stamps, waste paper, money bags,
187.x?
Service charges on collection items returned unpaid
12*t,0H
Monthly letters sold
25.13
Clearing Bouse fines
97.00
Met Commission on h~.il insurance
JJ% 5 L




Total tamings

$ 1.373.'♦91.52

Combined
1927

Helena Sr^nch
...
1927
1^,755-17

3,6fflL:'4l
15,00

$

192 , 216,06

360,292.95
707»598c9^
g,808c97
59^78
13 sHo^c6U
15.00
37,337 &

69; 6U

69 6U

^ ,7 9 3 ^ 5
22, 268,17
127,19

!So75

$ lo.539.S7

i^ 2 c79
2% 13
97oOO
1*122,56...$ 1 .390.031.U9

1326

$ n o , ^23.71 &
£ , 511 ^
05
723.3^7-*J5
16 , 567.66
3?5.50
5,980.29
16 ^ 73.12
l l 6,U3U 12
,
, 73 98
2^,533 ^

1 928,22
250.28

220o29
29o09
17 k c00

1925
231,3111 87

^ 0 ,7 8 3 .9 3
676. 696,32
180 , Jk

1 1 ,1 1 1 70
1 7 ,Ul^t 50
36 , 652.70
182 88

19.599 18
3 . 605.Ul
218,13

192=93
2^ 99
336 00

$ 1 , 622,332 6U $ l,i*38.3Ul„28

CB0B8 B t a m W B AMD
avbbagb

a m or

robbings oh bahhxno assets

FEDERAL RESERVE BANK OP MINNEAPOLIS AMD HELEHA BRANCH
1926

1927
Discounted bills
I 192,216.06
360,292o95
Purchased bills
707,598.94
United States Securities
Federal Intermediate Credit Bank Debentures
8,808.97
Munioipal Warrants
594.78
Foreign Loans on Gold
Defioient reserve penalties
13,404*64
107,115.15
Miscellaneous

* 310,423*71
405,511.44
723,347.45
16,667.66
385.50
5,980.29
16,473.12
143.643.47

$l,390,031o49

$1,622,332.64

TOTAL

%

Monthly Average of Gross Earnings
$ 115,835.96
87,395.51
Monthly Average of Current Expenses
Monthly Proportion of Operating Profits
28,440.45
15,060.54
Monthly Proportion of Dividends Paid
Monthly Proportion of Original cost of Federal
Reserve notes including shipping charges
to us
2,843oll
Hate per cent of Current Net Earnings on
paid oapital stock

135,194.59
88,646.43
46,547.96
15,634.10
2,799.78

11*35

17.8.6

AVERAGE RATS OF EAENIt’ OK EARNING ASSETS
GS
Bills
Bills
U.S.
Discounted Purchased Securities
1927
1926
1925
19£4
1923
1922
1921
1920
1919

3.937
4.000
4.030
4.458
4.502
5.119
G.479
6.223
4.381




3.412
3.548
3.245
3.720
4.125
-

6.057
5.259
4.267
ri600U )
.t
Disccuv.t
tiscount
Eiscou't
Discount

Federal Int. Municipal Foreign
Credit Bank
T/arrants Loans on Total
Gold
Debentures

3.581
3.850
3.841

3.654
3*827

Oe*>3<7

•

4« 250
3.427
2.065
2.01c*
2.460

-

rate
rate
rato
rate
rat©

effective
loverod
lowered
lowerod
lowerer

•

3.722
4.000
4.000
4.374
4.500
4,752
5.807

-

«

-

mm

-

4.500
3.569
3.000
•

«»

3.580
3.793
3.651
4.084
4.411
4.840
6.091
5.755
4.114

January 1, 1922
Jar.uarj' 11,192?. to 5 6
J
A'^/ast 15, 1922 *o 4 $
October 14,1924 to 4#
Ser^er.ber 13,lr27 to Sj#

12

Earned at Minneapolis

#1,373,491 52.

earned at Helena §16*539097.

The above total represents our income from various sources as
outlined in the Federal Reserve Board*s roport form3c

Other amounts have

bean colleoted during the year but these credits are made direot to Profit
and Loss account.
Total earnings for 1927 were $232,000 below the total of 1926.
During the last quarter of 1927 profits vrere well maintained and this was
necessary as up to the close of September we barely covered our current ex­
penses and dividends and had made no provision for depreciation allowances.
It has always been possible for us to receive additional earning assets
from outside of our District and we were again allotted liberal amounts of
bankers* bills during October, November and December.

Increased amounts

of United States securities were also obtained through the Investment Com­
mittee in New York so that our earnings for the year were sufficient to aover
all needs and pay a franchise tax of $103,815.90.
Inoome from Distriot
1927
DUoounts for members
Warrants
Penalties for deficient reserves
Interest on past due paper
Interest on delayed transfers
Mlsoollatieous

# 192,216*06
594,78
13*404,64
37,337.22
69o64
1,646.67
*? wr,w.<n:

1926

1925

1924

$ 3 10 ,4 2 30 71 $ 231,341.87 $ 578,446056
385.50
180.74
31,19
16,473Q12
17,414o50
40,175.08
116,434°12
36,652.70
19,529.77
73c98
182o88
773.25
673.66
772.05
1,315.26
— f
T~m,wirsi

Income from Without Distriot
Discount from Purchased Bills
£360,292.95 $ 405,511.44 $ 440,783.93
Interest on U. S. Securities
707,698.94
723,347.45
676,696.32
Interest on federal Intermediate
Credit Bank Debentures
8,808.97
16,567.66
Poxeipi loans on Gold
8,980.29
11,111.70
lot Profit on U.S.Securities sold
45,793*46
24,688.49
19,599.18
participation in transactions with
fe*»i£l! Banks
22,268.17
1,928.22
3,605.41
fI*T7Tjm65’$1 , 5 1 ,706 .54—
1

84,263o91
848,070.29
532.50
33,809.05
2,118.50
ire¥,W.lB

In no year sinoe 1922 have we received strictly from our own Dis­
triot, an income sufficient to cover our needs*

The proportion that came

to uS from our own member banks in 1927 was but 17.6 per oeht of the total




-2incomeo

One year ago the poroentagy of income fron this District was 27.4,

The total of income f ’ resources originating outside of our District was
i om
$33*000 less than in 1926, while income from member banks was approximately
$200,000 less in 1927 than in 19260
United States securities for a number of yoars have be?n our chief
source of revenue and this income continues to exceod that derived from
purchased bills and dioounts for members combinedo

From our permanent hold­

ings of United States securities in 1927, we obtained §308,738^10 or $43,300
less than in 192G„

The exchange of O3f059,000 of Second Liberty Loan 4j$
l

bonds for a like amount of 3^ per cent Treasury Notes on Llarch 15 reduced
our income about $15,000.

Our holdings through the Investment Committee in

New York gave us an inoome of $398,860o64 or $27,600 more than the inocne
from this souroa in 1926 0

Our total holdings were actually greater in 1927

than in 1926, but our earning rate on United States securities averaged
3*561 per oent for the year in comparison with an average rate of 3o850 per
oent in 1926*

Average daily holdings of United 3tates securities w?re

$19,759,000 in 1927 and $18,788e00Q in 19260
The discount obtained from purchased bills was less than in 1925
or 1926*

From this source we received $360,292.95 in comparison with

$405«511o44 in the previous year and $440,783993 in 1925o

The average amount

of bills held in 1927 was $10,560,000 or $868,000 less than the average in
1926o

Hates for acceptances were around 3 per oent for a good part of the

year and the average rate for the year was 30412 per cento

The 1926 rate

was 3*648 per oent.
Our member banks had little need for our discount facilities
throughout 1927.

Average disoounts over the year period were $4^822*000

and the highest monthly average was $6,960^000 in Ma^ o
y

The total discount

obtained from members was $192,216o06 or less than 14 per oent of our total
lneom»*

In 1926 the daily average of disoounts was $7,761,000 and the dis­

count received amounted to $8XGp423o71o
On September 13* 1927 the discount rate was reduced to 3j per
jr
*«nt after remaining at 4 per oent since October 14, 1924«




The average

U

vaie obtained for vvo joar vas 3 957 per cer.t which aldo ia - l lowast
hw
• e a f © rats obtained since tho opening of tha bank«
wr.r

O . income from every
ur

class of earning asret has been at a lower rate than in 1926 o

The rate

obtained from all classes of earning assets combined was 3o580 per cent in
comparison with a rate of 3o793 per cent in 1926*

The rate for 1927 is

also lower than for any other year of our existence *

It was estimated at

the first of the year that we should require an average of approximately
$35*000,000 in earning assets for 1927, to oover our needs <
>
carried for the year was $36*457,OOOo

The average

In 1926 the average daily holdings

were §38,552,000o
Additions to our earnings from reserve deficiency penalties have
been decreasing each year since penalties were first inflioted.

A total

of $13,404o64 was received from this source in 1927 and $3,000 less than
the amount collected In 1926o

The closing of many banks and the improving

condition of others will, no doubt, lessen future penalties®
Our collections of interest on the past due paper of closed banks
were much less than in 1926«
banks

For 1927 the total collected from twenty-six

final settlement was $37,337o22o

In 1926 the amount oolleoted

was #1160484ol2 from forty-eight banks o
At the present time we are holding $600,000 in debentures of the
Federal Intermediate Credit Bank of Omaha taken on a 3o40 per oent basis.
Barlier in the year we had 1500,000 in debentures of the Louisville bank on
a 3*875 per oent basiso

Total interest from debentures was $8,808c97 and

approximately one-half the amount earned from like holdings in 1926.
We have a great many transactions passing through the books daily
in oonneotion with purchases and sales of United States securities for our
member banks*

No commissions are charged by us for this service but when

we make a purchase for a member bank we take the interest on the security
until payment is aotually received by us0

On sales arranged on which we

give the member immediate oredit, we retain the interest until the purchaser
places suitable funds in our hands„
1927 amounted to $10,829976o

Interest obtained in this way during

The profits on exchanges of Uhited States se­

curities held by us through the Investment Committee aggregated $I3^258043



15

4during the year0

An additional amount credited to miscellaneous earnings

was obtained on March 15 from the Treasury Department0

As an offset to

the premium on $3*058*750 of 4%$ Second Liberty Loan bonds which we ex­
changed for Treasury notes, the Treasury paid us the interest on these Seconds
from March 15 to May 160

The amount received was §21*905o26.

Our participation in transactions with Foreign banks brought
profits of $229268ol7 for the year0

All entries on our books are made upon

advice from the Federal Re serve Bank of New York who make the arrangements •
The source of income is largely through investments made by Foreign banks
in acceptances and United States securities,,

Purchases are made for these

banks by the Investment Committee in New York and a small commission is
chargedo

When a repurchase agreement is given the Foreign bank & larger

commission is chargedo

Our pro rata share of commissions was $12f764«95«

For a good part of the year the Federal Reserve Bank of New York maintained
a balance on the books of the Bank of England*

This balance carried inter*

est at approximately 4 per cent and our portion of the interest earned was
099603o24o
Various other small amounts were obtained during the year such as
service charges on collection items returned unpaid, the s’ of monthly
.ilo
letters on conditions, clearing house fines, sales of waste paper and the
net commissions on hail insurance placed through our representatives*
The average monthly earnings were $115,835o96 in 1927 or ap­
proximately $20,000 less per month than the earnings of 1926.

After de­

ducting from Gross Warnings our Current Expenses only, the balance remaining
represents 11*33 per cent on paid-in Capital Stock.

This comparos with

the percentage of 17*86 in 19260




16

COyPABATIYl STATKMOT
CTJRHENf SXPW5SS 07 fH® FSDBRAL RESEHVH BANK 07 I'lHNBAPGLXS AND HELKTA BRANCH

M N
IN EAPO
LIS
... m . ... .
i
.

Salaries§
Bank Officers
Clerical Staff
Special Officers pnd Watchman
All Other
Governors1 conferences
Federal Reserve Agents' conferences
literal Advisory Council
Dtrwvtwr meetings
•fiwiiing expenses
AWMftsments for Federal Reserve Board expenses
fees
Inrtftoaoe (other than on currency & security shpts.
IiMraraitce on carrency snd security shipments
T«ac#i on banking house
Ll^rt* heat and power
Repairs and alterations banking house
ami
Office and other supplies
Printing nnd stationery
Telephone
Telegraph
Postage
Ibcpressage
Cafeteria (Net expense)
miscellaneous
Total exclusive of cost of currency
Federal Reserve Currency?
Original cost, including shipping charges
Uost of redemption, including shipping charges

HELENA BRANCH

_ _ 1222___
_

$ 116,191*50
322,57^.06
23 ,22loIk
*
75.560.75
59
210c25
1,112.53
6,269036
26 .595-76
.> . 136.58
3
2 5 .693.76
25. 7w .73
1 1 ,689.09
83, 750=00
18 ,237.06
9.309.91

$ 13.169.08
35.275.00
5,Uoo„oo
3,50U.oo

18. 995.02
z}. 233.7?
4 . 699. 8U
12.097.59
55.13^.05
7.867.71
7.223
22 .-m.

906.36
2,088.73

3U. 117.33
— ljiSLk.
956,938.05

♦Other than those connected with Governors1 and Agents1
Co»farences and meetings of Directors and Advisory Council«



1 .176.U3
1.U62.03

1,800=, 00
3,386.88
1 , 702.36
1,893.05
1 , 3 » .7 8
8O.9 9

60

U.2 U

7 .S7U.07
6. 7U2.22
5U7.20
2.870.68

COMBINE)
.- 1 27..
■9
$ 12 9 ,
360.58
357.8^9.06
28,62fc.lU
79.o0t.75
UU3.59

210.25
1 , 112.53
7.UU5.79
28.057.79
23. 136.58
27.^93.76
29 .lO l. 6l
13.391.^5
85.6U3.05

$ 135,680„56

357,223.51
25.958.29
8Q.090.U3
568.38
288.CR
82U„3’
7.288.5^
35.221.58
22.595.76
30.701.29
28.2U5.90
1U,090.66

l9 . 6 l.8 U
5
9.390.90

82,713.11
19.761.76
U.5U0.U7

19,901.38
25.322.U5
5,3Ch.08
19 . 971.66
61, 876.25
8.U1U.91
7.223.%
_—
aiafrsi$ l , 013,lU6 .>
«l

19 . 725-21
25,568.06
5.816.19
23,277.28
W.5 72.63
8,1436.68
8 . 31U.51
26.U<k .Uo
* 1 . 027, 798.59

3U.117.33
♦ 91,808.10

COMBINED
___ isgg..

$ 1 . 0U . 7U6.15
8

33.597.38
2 .^6 1 .a

CO’
/BINED
___ 13£5_
125 . 551 . 5U
375. 112. U
3
35,568.02
93. 3U3.68
6UU.57

300.02

990o65
8,256.07
U5,722.62
23,006.05
29. 883.75
31,793.25
1U.U23.78
80,030.71
19, 757. ^
7 .9 3 1^ 5
7,889.05
22,890.91
22,035.00
5 ,7 $ .lU
21 . 97H.93
61, 597.13
9 . 553.U5
7.152.CW
■ia.Q9H
$ 1 ,0 73 .2 7 1 .
28,25^.82
___ 3J t 2 L 52.
1,1(^,981.02

EXPErlSSS
At Minneapolis $956,956o05

-.1,048 ,746 *15
At Helena ;91,80c.10

A comparison of the iteras making up our expense -classification
for 1927 with the similar items for 1922 does not reveal any outstanding
reductions nor any marked increasea« Tho combined current expenses at
>
Minneapolis a i Helena are }16,011o05 less than for 1926o Of this re­
rd
duction $9,316.32 was obtained at Minneapolis and $50694o73 at Helenao
An analysis of all the expenditures during 1927 is offered
and the reasons given for increases and decreases*

The possible trend

for 1928 is important and we are hopeful of reducing the 1928 total expense
below that of the past year.
•one of our expense items*

Improved banking oonditions should lessen

Our handling of custodies made additional

expense in 1927 and will no doubt add further expense in 1926*
The different items of expense are outlined below in the same
order In which they appear on the regular reports:
SALARIES

*594,898*63

The total pay-roll of the year, eliminating salaries for whioh
ms are reimbursed by the Treasury Department9 was |4,054*26 lest than
the pay-roll for 1926*

Some doubt was expressed at the beginning of 1927

of our ability to bring the 1927 total salaries below the payments of 1926
1b view of the fact that £27,300 in increases had been granted effective
January 1, 1927* As of January 1, 1926 the Minneapolis staff was 296
persons and that of Helena 35 persons with a net reduction of 15 persons
for the y*ar*

The ordinary deletions of the year would not have brought

the 1927 pay-roll below that of 1926 but for the resignation of Governor
Young*

Several other persons drawing more than the average rate of pay

left during the year more than offsetting some additions to junior employees*
Additions to the 1928 pay-roll already approved by the Federal Reserve Board
are $20*790 to Minneapolis employees and $2,740 to Helena employees*

These

increases, plus any allowed the officers* present a further problem whioh
oan only be solved by a material reduction in the staff*




18

TRAVELING EXPENSES

;28 ,057. 79

This amount is largely made up of expenses of representatives
at closed banks and reflects the decrease in activities of these men*

The

reduction over 1926 expense was £7*200 and £17,700 less ;
han the amount
expended in 1925*

Without doubt further reductions in this class of expense

will help in holding down the general total for 1928* Recoveries of 1927
expenses at olosed banks were also made to the extent of $6,711o08o
Approximately #1,000 more of traveling expense was incurred at Helena in
1927 than in the previous year due to more frequent attendance at group
meetingso
ASSESSMENT FOR FEDERAL
tt&SEttVE BOAto t X r H g '
efKgS

S2S.136.58

This assessment is governed by the requirements of the Board and
is assessed against the paid in capital stock and surplus of each banko
The ratio was somewhat higher in 1927 than in 1926* Y e were recently advised
/
of the assessment covering the 3oard*a requirement# for the first half of
1928*

This rate of assessment is lower than usual and in addition, our

Surplus was reduced $500,000 through the charge-off on our Building Account0
Our monthly payment to the Board will be i l
r pS76057 for the first half of 1928
in comparison with $2,047o66 paid monthly in the same period of 1926o
After allowing for a likely inorease in the assessment for the
last six months of 1928 the proportion of the Board*a expenses which we
will assume in 1926 should be approximately $6,000 less than in 1927o

IBQAL FEES

$27,498,76

There was nc ohange in the retainers or office expense allowed
Messrs* Ueland and Heland, Minneapolis, but $100 office expense which had
been allowed Helena Counsel monthly was discontinued*

Several special oases

ealled for additional payments of fees during 1927 and prevented our making
greater reductions in this class of expense ‘
than $3,000*

In December we

made payments of retainers and other fees to the amount of |3,238«64 which
was the heaviest amount for any one month of the year0 One item for $788*80
severed the bill of legal representatives at Madison, South Dakota, from
Jiily 1, 1927 to dose of year* Another item was $700® to Counsel for expense




19

in connection with taking depositions in case of Bank against Yellow­
stone Valley Bank and Trust Company, Sidney, Montana.
Even allowing for some unusual fees* in 1928 the total for the
year should be less than in 1927*
INSURANCE
(Other~Qian on currency
and security shipments)

#29,101*61

There m s no change in the character of insuranoe expense
during the year to account for the increase of #865*71o On August 1 we
placed a secondary blanket bond of $500,000 with Hartford Accident and
Indemnity Company, making our total ooverage |le500,000o
premium is $2,500 yearly.
$20,000 yearly©

The additional

Our total payment for fidelity insurance is

The privileges to our employees in the matter of group

life insuranoe were doubled with a maximum of |10,000o Practically all
the employees are now paying 50^ per £1,0 0 0 monthly for the additional
insuranoe,with the bank assuming the small balance of approximately $55*
monthly.

7 e carry $1 ,200,000 of fire insurance on our building at a oost
r

of $75*81 per month*

Tornado, Boiler and ¥ater damage Insuranoe is also

oarried*
INSURANCE OH CURRENCY
ANl) SEfeURII^MlM^NYS

|13,391o45

There was not much change in the amount of insurance charges
absorbed in 1927 for member banks through Minneapolis from the amount
absorbed in 1926* At Helena, through the falling off in volume of currency
Shipments, the expense was $500* less than in 1926*

Hone of this expense

was for insuring shipments of seourities as all of this oost is passed
along to the banks served*
TAXES ON BAKKIKO HOUSE
Minneapolis
Helena

$83,750*00
1,893*05

The most difficult item of our expense classification in whieh
to bring about a reduction is that of taxes* We are paying much heavier
taxes than any other bank or offioe building in Minneapolis and we are
entirely out of line with the payments assessed against other Federal




20

Reserve Banks.

Every attempt to bring about a revision based on sale

value as appraised by the Heal Estate Board or even on estimated replace­
ment cost has set with refusal0
In addition to having our property over-valued, the tax rate
has been raised from 71ol6 mills in 1926 to 73*47 mills for 1927o

It

was necessary for us to set aside |90600o00 in December to adjust the
total reserved for the year» We will reserve $7,000 monthly in 1928
and until suoh time as we are able to obtain a revaluation.

Other plans

for bringing about an adjustment are being oonsidered and we hope will
result in reduction of this heavy expense0
At Helena the tax rate has been gradually raised but the amount
assessed is based on a fair valuationo
LIGHTo HEAT AHD POWER

#19,601e84

There is a reduction from 1926 of $200 in this aooount, the
increased oost of heating being offset by a lowered expense for light and
power.

Heavy deliveries of fuel oil were made in Deoember leaving a

greater number of gallons to be carried over into the new year than usual.
Payments for 38„450 gallons were made in Deoember.

The extreme weather has

increased consumption and it is hard to estimate a reduction in heating
expense even though oil costs 0569 cents per gallon compared to the former
price of 0595 cents per gallon.

Light and power is furnished under contract

giving us an industrial classification.

The saving over 1926 costs was §606.

REPAIRS AHD ALTERATIONS
BANXj^Q HOffSE

$ 9,390.90

This is the largest amount expended in any one year since we
occupied our own building0 the increase of approximately $5P000 over the
1926 expense resulting from the placing of windows on the Fifth Street side
of the building at a cost of |60180o78o Ho other alterations are contemplated
and the total expense for repairs and alterations in 1928 is estimated at
|2p000o




21

m iC t AT) C?K<E S0P.UB8
m r n im m> a tm o w atr

$ l?f/iDloo8
25,722,>46

the total expense of the## two items is $7S« lee* «<an tNs siinilir oosts of 1926*

In 1926 *e reduced the expenditures for >uil'3rs\ stip*

♦

pU«i hut f s r not !*d wuoh suocee* in lowering the expense of nripting
cae
and stationery*

recently made a thorough oheoU of ♦.«« stock of at*£:*li««

and beliere the information gainec1 will enable us to rentlaV.<* i>ie gyanti*
tiae ordered with a hatter idaa as to our future needs* All farms and sup*
plies heoonin£ obsolete : st *e «ritte;3 off in the different department bud- 311
* gfts and this in itself will causa careful ordering*

ifam unusual expense

was- ereated ttvo**gh tSa expansion and changee nmde in the Custodies function
and we beliere the 1926 totals should ahem a reduction fro®*
The inrontory

1926 expense

the end of the yoar indicated &l»y!70, in su^li«*a on hand

and #990* loaa ttan t>e value of sullies held at the cl«»e of 1926*
T*Ur*;.0 gS

# *,$04*06

A reduction «as taado ia telephone expense both at Helena and Vtom+*
apolis for 1927*

8ome of the Brarcfc saving was node from ourtailront of »
trunk U n a ecrrioe while both Head Office and Helena had laas expense far

outsideoclls*

fhe strings effected nas 3512*11 and there secxs no reason

♦
♦

this gnin should not be retained in 1928*
fSUSOttPS
^

MDHUPOLZS
m m k

# 12,097059
7#8740
or

An expansion of telegraph expend in 1926 *as *»re than offset by
arterial rednctiona in 1927* the catenae of 1927 was $3,305*62 lower than
the Wtll coata for 1926, As previously stated, a lar^e part of cor tele*
graph espenaoeercre aatters orer w-»ioh we hare no control* this refers
*
a
especially to the exttmsire daily t«es$agaa between our two officaa and the
Federal Reeerre Beard* fhe fact that we aesmae the oos* of iaeeaaf:*a from
■s»bsr batiks revesting transfere and shipments of mousy makes' it diffi*
cult to regulate or estimate wire expense* By * recent c^ar^e in the classi­
fication of the Message containing the Helena daily balance figures, «e ax*
peat to reduce the 1920 wire expose at Helena by 11,000*




n,S7G(tt
l

POSTAGE
BOTODAPOLIS .. $ 55,134c03,
.

ISLENA 0. $ 6*742022.

The reduction in postage erperse for 1927 was not larr,e but some
saving has been made both at Minneapolis and Helena* The lessened expense
at Helena represents a smaller volume of currency shipped and received*
There was not mioh ofcan&e i , the amount assumed at Minneapolis for this
n
purpose but fewer transit itens were handled.
age used was established during the year.

A closer control over post*

Ho prediction as to the possi­

ble expansion or contraction in postage expense is made at this ti»e0
SXPRESSAftK

$ 8#414091

This expense item covers the cost of coin shipments and some
small bills to a c from < « . e banks a < the oost of haulinj; supplies
nJ
nKbr
?d
received from outside the o<£ty0 There is littlechange in this total as
the large volume of our currency is bandied by registered mil*
CAFBTBRIA

$ 7#223e40

The saving of $1*100. in comparison with the total cost of
this servioe in 1926 was not throujjh tha curtailment of the servico0
Under a ruling of the Federal Reserve Board, no Federal Reserve Bank may
Assume more than one-third of the total cost of food and service*

Gross

expenses of the cafeteria for the year ^ere $19*314.06 and receipts
amounted to $12*090»57«
the Board authorised.

The net expense absorbed is £*78&<>47 more than
In June we began charging 2 cents per serving Of

beverages as a means of complying with the Hoard* s request and at this
time the expense absorbed is less than one-third of the monthly cost0
FEDERAL RSSBRVS CURRENCY
Original cosi and tfilppinrf charges.

$ 34.1*?0S3

The above amount is divided into printing cost of notes ihtrlnrv
the year at Washington §51,502.60 and the postage and insurance ckarges
of $2*614*63 on the supply of notes sent us from Washington.

Printing

sohedules hare had little .variation during the past throe years and
an estimate of the 1928 expense would he approximately $30*000 of printing
expense.




Fewer notes were brought from 7/ashington in 1327 than in 19260

23

Printing costs have also been lowered from £36*60 to $35,50 per 1000 sheets*
FSPBRAL RBSETOTS CURRENCY
Oost of Redemption Shipping charges

$ 1,482*41

Ho part of the expense of the Redemption of our notes is included
in the above amount, the charge representing shipping expense only*

▲t

the close of 1926 we had accumulated the sum of $2,832*91 to cover the Re­
demption Agenoy expense*

this expense is now much less than formerly,

Xn

September we paid the bill of the Treasury Department for the fisoal year
ending June 30, 1927, amounting to $1,338*610 As we have sufficient reserve
to oare for the next payment, no additional amounts aill be set aside this
year*
MXSCSUAKSOUa BXPEKSBS

$ 25,244*52

In addition to the expense items which are classified throughout
the year, there are other items of b o or less importance*
i re
these expenses is $1,250. less than in 192$,

The total of

It is difficult to determine

in advance the likely amount of .unclassified expense in 1928, but there
should be a reduction in the miscellaneous amounts expended to protect our
interests at closod banks*

The more important items and the costs are

given below: Copies of bank examination reports cost $8,008*50 and rep*
resents a payment of |463« less than in 1926*
of the miscellaneous items*

This is still t - largest
*e

Other charges were: Repairs and maintenance

of equipment $1,156*70 ($658*04) at Helena, ojutside protection and time
service $163*00; outside cleaning, laundry, water sppnly, etc* £841065;
oar fare, taxi hire $1,306.20j postage neter rental $312*00; newspapers,
books, binding, clipping service, etc* $1,968*40; collection fees absorbed
$348*33; commercial agenoy credit service £4440
00; entertainment of bankerc
and others $461098; officers and employees9 dinners £798*55; donations
to employees for educational purposes $1,190*63; donations to Federal
Reserve Club $2,301*75; Membership dues |1,164*60; contribution to Tax
Payers Assooiation £610*93; donations to police and others £210*00;
Miscellaneous expense at closed banks to protect our interest, other than
salaries and traveling expenses $3,603*C-0
«3




24




REIMBURSABLE W^HDITUBBS
ACCOPHT FISCAL AQUNCY OPT^ATIOHS
1927

$ 4*000*16

Salaries Officers

9,072.75

Salaries Employees
Office and Other Supplies

54.47

Printing and Stationery

3,691.54

Telephone

1,627.80

Telegraph

220.52
1,279.00

Postage

2.73

All Other
Total Expenditures

% 19,948.97

FEDERAL RESERVE BAHKOF MIHHTiAPOLIS AHD HELENA BMHCH
Amounts charged out of earnings for Furniture and Equipment
(Including $46,odd, 06' f o vauTb in Weir York Life Building)
*r
since organisation
1914-1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927

*

0
5,565.00
44,464.26
69,976.42
23.926.74
100,816.40
68,569.10
24,639.60
25.528.75
48,987.98
10.347.48
20.869.48
10.783.93

Total
Sales and allowances of old
Furniture and Equipnent

% 426,812.06
11,487.67

Vet Cost

9 416,874.89

25

BAKE PREMISES KKPOBT DECEMBER 81, 1927.
n w m T M W N M tUMT 'M M l M P B U t . M M *
IF

BPX1PIHQ SITE
Original cost oflanJ, Including
.
buildings, if any, . « . * ....... «
,
Incidental expenditures connected
with purchase.......... . . . . •
Total ............................
Less proceeds from sale of salvaged
material o * . « o o o o » . . o . o «
Cost of building s i t e ....... . . • 0

$ 600,OOOo00
2,468»66
ITlCgfiBOr
_
_

_

l,948o00

BPILDIHO
Preliminary expenditures . . .........
|
3,000.48
Oost of construction:
Building exclusive of vaults
f fixed machinery f equipment
t
t
#1,730,065a37
Vault construction, including
any additional struoture or
foundation made necessary by
vaulv ,and vault equipment . .
325,750.54
Fixed machinery f Equipment $623,965.65*
t
Less sale and charge-off of
2 mechanical coal stokers
(Original oost #1*966 each)
3,912o00
620,053*86
Miscellaneous building construction ex­
pense incurred by Federal Reserve Bk:
Fees f Expenses} Architects . , . . .
t
148,027o79
Engineers
15,846000
Taxes . . . . . . . . . ............
74,360o00
Maintenance , o
. .....
____________ 21,708o66
Cost of lew Building . . . . . . • .
#2,65da7&9o59
Coot of building f building site . . .
t
#&,537,320o()£
Charge-offst
Depredation allowances. . .
1,037,408068
Taxes . . . . . . .......
74,350000
Maintenance
21,705<>66
Total.............. , . .
-----Book value of property . . . « . . » 0
1 #k,40i,feta<1ri
,
MEMORANDA
Reserves against depreciation:
Building
fixed machinery and equipment. • « • .
total . . . . . . . . . . . . . . . . .

|
(a)

Floor space;
fa) Occupied by Federal Reserve Bk.
fb|! Rented * o o » o . . « . . « » < j .
foj tJhoooupied o .. « • * • • • < > <
>
[d) Total floor area in building
(A) Net after charging off #782.40 which was previously
reserved as depreciation on ooal stokers*
♦Includes $100,600* of architect *s fees and expenses.




76,996o89
198,439o58
j 'm l m m '
124,739 Sq. Ft.
f Sq. Ft.
i
^ Sq. Ft.
124,739 Sq. Ft.

BASK PREMISES REPORT DECEMBER 81. 1927.
Federal Reserve Branoh Bank at Helena, Montana.

Original oost of land and building . . . a . . * . . . . .
$15,000.00
Cost of remodeling:
Building, exoluslve of vaults
and fixed aaahinery and equipment . . . . . .
57,642*95
Vault oonstruotion, including
any additional structure or
foundation made necessary by v a u l t .......... „
9,266*00
Vault equipment, including doors,.
lining, and all Interior equipment #
, 66,580*55
Fixed naohinery and equipment................. *
• 16,108*99
Fees:
Arohlteots * . * . ................................... .. # * .
5,433 o 57
Contractor's Conniesion . . . . . . . . . . . . . .
7,442.12
Total oost . . . ................................... $177,474.14
Less proceeds from sale of salvaged
material . . . . . . . ................ . . . . .
75.00
Cost of building and building site . .................. $177,399.14
Depreoiation allowances oharged offs
Charged to current net earnings.......... .

$ 21,290.15

Book value of property............................. $156.108.99

MEMORANDA
Reserves against depreciation:
Building o ............................ $73,218.74
Fixed Machinery and Equipment . ...........
9,596.23
Total.......................... .

$82,814097

Oooupied by F.R. Bank...................
Rented.......... ....................
Unoooupied............ ..............
Total floor area in building.......... .

4700 Sq. Ft.
p Sq* Ft.
T
sq0 Ft.
4700 Sq. Ft.

Floor Spaoe:




27

BANK PREMISES EBPHSCIATIOK
Minneapolis
Charge-off of land - 1919 - - —

110 0 ,000,00

Charge-offs of building (including vault, but excluding
fixed machinery and equipnent) to reduoe book value to
estiaated replacement cost:
Taxes on building during period of construction
192 2
------ ----------- # 6,200*00
1923 ------ - - - ----- ----- 14,760,00
1924
64,390,00 # 74,350c00
Goat of maintenance during period of construction
1925 ...... ............... e 2,101o93
19g603o73
21,705o66
1924 - - ...................
Charge-off of construction costs
1920
- - - ---------- -#100,000o00
192 1
- 5,381o40
1922 - - ...................
6,446o87
1983 .... .................. 20,381*04
1924
- ~ - ----- - - 219,316o89
1926
- - 30,463o84
1926 ............ ........ - 57,438.64 437,406,60
December 31, 1927 Transferred from surplus
to reduoe book value of building- - Reserve for depredation on building
1925 36,814o40
1926
- ............... ... 32,616.86
1927
--------. . . . .
6,665<»63
Reserve for
1924
1926
1926
1927

depredation on fixed machinery end equipment
...................... ......
12*814o73
- - - - - - - - - - - - ....... 52,396o£6
------------------(e)
71,222.96
- - - - - - - - - - - ......... 62,005o36

Total depreciation on bank premises - Minneapolis

633,464o34
600,000o00

76,996o89

198,439o58
♦1,408,900061

Helena Branch
Charge-off of building (inoluding vault, but excluding
fixed machinery and equipnent) to reduoe book value to
estimated replacement eost
1920 ....................... - ............

21,290©16

Reserve for depredation on building
1920
............................... -66,447o
49
1921
.............................
1*893*2$
1,355.37
1922 - .................................
1923
•
...............
1,571o06
1924 ------------ 3,126o30
1925
- -- 3,125o30
1926 - - - - ............................
2,700.00
1927
- ................. . - 2,T00o00T

73,218*74

Reserve for depreciation on fixed machinery and equipment
1922 - - -----1,610«90
1923 - ................ - ............. *{b)l,541*t3
1924 - - - - - - - - - - - - - - - - - - - - la610c 90
1925
I,6l0o90
I W S - ~ ........... ................... I*6l0o90
1927 -.......................... - - l,610o90
fatal depreciation on b a p w a i s e s * Helena
(l) lit After deduoting #782.40 oa aooount of sals and
ofearfe-off of two meohanioal ooal i M m p s .
(|) let after deduoting #69*17 for replacements*



9,696o23
♦104*108,12

28

BANK PKEI4ISES.
There have been fewer changes about our building during 1927 than in
1926, although the $9,309*91 of expense for repairs and alterations in 1927 was
twice the amount expended for the same purposes in the previous year*
alone aocounted for the inerease in 1927*

Oho item

This was the plaoing of four windows

on the ftftft Street frontage to proride suffioient daylight for the private of*
floes of the Agent and the (tavernor.

The total oost of this alteration, esti­

mated at $5,180*78, has been eharged against 1927 expense for payment on o«*»
pletlon of the work»
Our budget for 1927 had not anticipated an expense of the above char­
acter and the changes within the building have been reduced twenty-five per
oent in comparison v/ith 1926.

The alley on the West side of our building was'

paved with briok during the year*

No important alterations are la prospeot.

and this should be reflooted In the 1928 budget*
Problems of building operation have been largely solved and the effi­
ciency has increased, while erpease has decreased*

There is little oall for

the services of outside workmen, our own building employees having the abil­
ity to perform practically every job.

Included in expense of repairs and al­

terations is $2,166* the amount of our yearly elevator maintenance contract
with the Otis Klevator Company*

Salaries of building employees are not in­

cluded in the expense of making repairs and alterations*

Our nonthly pay­

roll for building employees, whioh does not inolude guards or chauffeurs,
was 32,393*50 in December 1927 for 26 employees*

Increases to the amount of

/

$100* per month have been granted effective January 1* Total payroll for
*
building employees in December 1926 was $3,055o10*
Estirates for 1927 oost of power plant whioh includes fuel, li~,ht,
power, repairs and the salaries of en^ine^rs, etc, were $30,860* Actual
expenditures were £585* less than the estimate and there should be little
change in 1928*
yearly.

The estimate* of fuel oil consumption is 130,000 gallons

n e paid for 149,600 gallons in 1927 r/hereas, the actual amount
*

used ras 139,000 gallons* Fuel oil contract signed on October 1, 1927,
with the ' . Vm Barbor Company, gives a rate of #5*69 per 100 gallons for
V .
one year in comparison with a rate of §5*95 up to the 1st of Ooto>er 1927c




There was a reduotion in light and power costs for 1927 of
0606.00 in comparison with 1926 costs, the total for 1927 being I9,498.19.
The oontraot signed one year ago with the General Eleotrio Company give*
us hn industrial classification.

This oontraot was for five y»ars«

The following improvements to the building and power-plant have
been made during the calendar year 1927:
(1)

4 windows have been placed in the main offloes Overlooking
5th street. Steam radiators have been plseed under thess
windows to provide additional heat required.

(2)

Tile roof of building has been repaired and thoroughly oalked.

(3)

Alley on west side of building has been paved with brick.

(4)

Improvements have been made in sliding doors, giving easier
and more dependable operation.

(5)

Ventilating system of lower vault levels has been improved,
insuring plenty of fresh ?ir for working force.

()
6

Control of excessive air supply to oages on bank floor has
been provided.

(7)

Steel chests from silver vault have been moved to the thir&
vault level for use of the custody department. These have
been replaced in the silver vault by steel ohests formerly
used in vault of New York Life Building.

(8)

A large jteam coil water heater has been installed in the
boiler room, resulting in a considerable saving in fuel0

(9)

Steam leader pipes over main boilers have been reduced in
sise, saving fuel0
BAiTg PREMISES

(Depreciation)

No change was made at the close of 1927 in the per oent of
depreciation allowances which has been authorised by the Federal Re­
serve Board for several years past.

We have, however, after several

years' effort, been successful in obtaining a reduction in our building
account of §500,000 through a charge of like amount to Surplus Account•
Our current earrings were not disturbed except for the normal allowances
made each year in establishing a depreciation reserve of 2 per oent on
replacement value of building and 10 per cent of the cost of fixed
machinery and equipment.
Each year some change has been brought about v/hich has required
an adjustment of our book values. The replacement value of he building
eliminating fixed machinery and equipment, was fixed as f l
J p783,281o50 at
the close of 1928 and 7/ith the •500,000 reduction just allowed, is now
;




tlf283,281*50Q For three years we hare been setting up a 2 per cent re­
:
serve under the Federal Reserve Board1 s plan of aooumulating the replace­
ment oost over a period of fifty years 0 While our book value of building
no doubt is lower than the replacement oost, we are not authorised to
reserve yearly a greater amount than 2 per oent of the book value0 For
this roascn the adjustment on the $500,000 reduction now allowed has to
be oarried back over the three years we have been setting up reserves«
On our present book value we are entitled to a reserve of #76,996.69 and
at 1 already have set up #71,331e26, our depreciation allowance for 1927
*e
is $5,665„65«

Until some further change is made in the book value of our

buildingp the yearly depreciation allowance will be $25,6650630
Cost of our fixed machinery and equipment was $620,053.55 which
includes $100,000 of architect’s fees*

To close of 1927 we have deprecia­

tion reserves of tl98,439*58G All of this equipment has been subject to
t
the 10 per oent allowance for three years with four years depreciation
allowed on the heating equipment which was made use of for part of the
construction period„ No replacements have been charged against the reserve
account#
No change has been made in Helena values or depreciation allow­
ances o The Helena property is oarried on the books at Head Office with
land shown at $5,000*00, building $135,000000 and fixed machinery and
equipment $16,1080990 Reserves accumulated against the building are
&73,218o74o

To replace fixed machinery and equipment $9,596023 has been

set aside over a period of six years«
The complete record of charges and allowances covering our
property at Minneapolis and Helena - / l be found in the accompanying
pil
tables.




FDHHIITO? AND SgrCP&JJT
The total expended during 1927 for furniture and machinery at
Minneapolis and Helena ' v s $10,783<,93.
.a

In only one year (1925) during

the past ten, has there been a smaller outlay for this purpose.

Our 1927

total would have been tho .lowest - i . e 1916 but for the necessity of pay­
arc
ing for a Dodge chassis in Decomber, upon whioh a St. Paul f i m v/ill place
a speoial armoured body and deliver to our Helena Branch early in 1928.
This chassis oost $995• and the amoured body will call for an additional
payment of $875o(X>«
Very few adding maohines or typewriters were purchased in 1926,
the #20,869«48 expended being for other classes of equipment, one item, of
whioh was #12,000 for currency counting machines*

In 1927 $4,107o76 was

paid for adding naohines and typewriters, mostly the latter and heavier pur­
chases of adding machines, whioh inolude bookkeeping machines, will be neoessary in 1928*

C i 1928 budget oalls for a tote l expenditure of $27,872 for
Xr
l

machinery and equipment.

These purchases are largely for replaoeasnts of

machines whioh have given several years more then normal services

Our

meohanio has prolonged the life of these machines to the point where it now
seen* good judgment to make new purchases.
Chairs, tables and trucks cost $1,866*80 with a large portion of
this oost made neoessary by the ohanged Custodies procedure*

Tiling equip­

ment oost #5,487. and with the expenditures now made, should be nuoh less
for seme time to come with the destruction of obsolete reoords and letters
more fully carried out.

Maohinery and equipment purchased for use other

than on bank operations oost $891*60.

Practically all the repair work neoes­

sary on our fUmiture is done by our own workmen in our oen completely
equipped shop*
Purchases of equipment for use at Helena amounted to #l,114n6&
and are included with Minneapolis figures as the reoords are maintained here
and we are desirous of cutting down the items in the balance sheet whioh
must be wired nightly to Kinneapdlis by Helena*
It will be noted that the inventory valuation at Minneapolis is
shown as #115,415u 12 and approximately #1*800 less than at the olose of 1925.




-2The explanation of this is ths b the most of our 1926 expense for equipment
c
occurred at the close of the year and no depreoiation was made,

ve have

taken this depreciation in 1927 which is 50 per cent of cost the first year.
We think our inventory valuation of $128,614a29 conservative*

Eliminating

the cost of the vault in our former quarters which vr included with our
,as
furniture and equipment, the amount expended to date since organisation for
furniture and equipment is $375,374©390 All machines are carried at the
trade-in value allowed by the nanufacturing company although we have been
able to sell quite a number of machines at a price in excess of the allow­
ance®

The furniture is kept in good condition by our workmen so that we

have not found it necessary to lower for some time the value placed on many
articles„
Each year we charge off the total amount of all purchases of
furniture and equipment made during the year, but in order that this fact
may be apparent, we show in our balance sheet $lo00 as the carrying oharge
for all furniture and equipment owned0

Fire insurance carried at Minnea­

polis on supplies and equipment is #25^000 and we also have a Lloyds’ policy
covering water and steam damage to our building and contents0

The premium

on the Lloyds1 policy is $156o25 per year and on the fire policy v e pay
i
#74o00 yearly*.
Amount expended for furniture and equipment
(eliminating vault in former building)
to end of 1926
,:376->028ol3
Purchased during 1927 - Minneapolis
9,669o28
Purchased during 1927 - Helena
_ Igll4u65
Less amounts received for furniture sold
or traded in
Total expended

11,437^67

Inventory valuation at Minneapolis
Inventory valuation at Helena
Fire insurance carried at Minneapolis
Fire insurance carried at Eelena




$38S,812o06

115,415,12
13,199.17
£ 25.000o00
SgOOOoOO

£ 30p000o00

33

fSRSOHHSL FUSOTION
At tho olo89 of the year there were S07 persons listed on our
payroll employed at Minneapolis and 36 at Helena, a total of 342, showing a
reduotion of four persons during the ^aar*

However, th-^re wa; a reduotion

in Deoeaber of eleven persons* whose salaries rare paid up to and including
December 51* 1927»

This number of employees also includes the rapresen-

tatives at olosed banks throughout our distrioto

Deletions for the year

include two of-ioers, Messrs. Young and Ebersole*

The total reductions,

iaoluding those in December* are five transit employees* eight collectors*
two officers and one employee at Helena.

There is one additional employee

on Fisoal Agoncy work*
Of the total of sixteen persons employed in the Fisoal Agency De­
partment* ten are being paid by the bank.

During the redemption of the

Seoond Liberty Loan the Fisoal Agenoy had as many as fifteen additional eaf

ployses*

A few of these additional employees were taken in from the outside

but had formerly worked here* Host of the employees wore borrowed from other
departments of the bank.
Of our own employees* there are 208 men and 88 women* including six
oharwomen*

At Helena there are 29 men end 6 women*

The monthly salary

batio (Minneapolis only) as of Deoember 31* 1927 was $46,114o61 as oompared
withtho basis of #45*861o67 the corresponding month of 1926*
'

Delotions of tho year wore -smaller than in 1926 but covered

mostly the higher paid parsons*

Through the return to the offioe of other .

olosed bank representatives whom we desire to retain* the salary expenee of
tho Failed Bank function has been further deoroasod and that of other
taotleao increased*
The efflolenoy of tho staff generally has improved during the past
year* as indicated by comparison of volume and costs at many functions with
irtallar figuroe of a year ago«

A more substantial salary adjustment to em­

ployees should bring about an inoreasod efficiency in 1028*

The oost of

•

tho pirMiiiiol function for tho year was #17*838o71# or approximately $2*400
lets than in 1926*

Apart from tho oost of hiring empleyeesand keoping

rooords* all of this expenso is f o direot servleo to our staff,
tr




Comparative oosts of tho units comprising tho fsroomol Function
on the follovlng sheet.

•

CHANGES 1 STAFF DURING 192?
January 1, 1526

12

Minneapolis Officers

U

170 (2 ex.Help)

Minneapolis Bank General
Minneapolis Closed Bank Department
(Collectors and Clerks)

16

Minneapolis Transit Department

32

J n . s I, 1927
a - u rv

166 (4 ex*Help)
29

280

83*45

294*45

35

Fisoal Agenoy:
Paid by Bank
Reimbursable:
Officers
Employees

36

16

Helena Branch

15

10
1

5

War Finanoe Corporation
Reimbursable
Total

.55
m

358"
r %

COST OF PERSONNEL FUNCTION
Number of
Offioere
.82
*90

Administration
Y x r m —
Tear 1926
Hiring Employees &
>s• Reoords
Tear 191
Tear 1926
Education and
Training
Yearl92t
Tear 1926

Number of
Bsployees
1703
1*46
Contribution to
F.B. Club
02 ,16 6 .?5
2,870.00

Welfare and
Medical
r x rm r Tear 1926

Cafeteria

Tm

t

Number of
Employees
1*16
1*34
Number of
Bnployees

1926

Total F*rsonn*l
Function
w
i w ----Y w 1926




6.84

Officers'
Salaries
£3,264.72
3,240.00

Other
Expense

Bnployees1
Salaries

Other
Expense

2,220.17

209*63

Total
Expense
r^S5V§l
2,429*80

Contribution to
Am* Inst* Banking
$271.00
298.00

Other
Expense
T708T66
714*92

Total
Expense
93,142.41
5,679.92

Employees'
Salaries
■5575507“ "
2,066.73

Other
Expense
?187*51
333.79

Total
Expense
'$2,175*18
2,402*52

1*25

Total
Expense
Ti,£66*72
3,241.25

Employees'
Salaries

Coat of
Food
JOJtTfKF

Total
Other
Expense
Expense
!,044.47
119,814.06
Receipts * c c e c e 12.090.67
Net Expenses * e e c *

$5,649.84

#12,543*46

$2,135*79.
o20,329.09
12^014.58
Receipts . .......
Net Expenses . . . * E 8^314*5?.

Number of
Offioere

Number of
Bnployees

Expense

~ * Y M ....

*90

8*64

20,268.00

35

y m m . jm.xs o? suariss paid m bask
BY fUHCTIOBS
(Minneapolis Only)
Function
Oeneral Overhead
Officer*
Sraployee*
Provision of Space
Bnplcyeee
Provision of Personnel
Officer*
aqpleyeee
General striae
Officer*
Sapleyee*
Xwrarance
Officer*
Failed Bank*
Offiocrt

Daeaatw 31. 1927.
Amount
HOo

D.cucdxr 31. 1986,
Jmcimt
jro
s^

Xo50
20
28

$ 20395o
90
420o45

2*15
20
21

I 30968o86
386o05

23o
00

20
651q98

220
28

20640o52

o50
7o60

168o70
7450
27

o90
8o30

270oOO
782o85

1*00
66o27

333 0
40
70
403o33

loOO
59o35

330o06
60
4O8o
72

oIO

33o34

330
34

1*00
15.98

641e70
30
05418

*10
1
2o00
29o48

10625 10
59124o74

laOO
Soil

l0145o90
955o
70

.35
5ol5

394o
60
782*57

*81
11*93

362 o
40
2P
3530
12

o50
4o99

329o
20
808,92

o30
17*49

137 o82
20
456o84

o60
20*33

275.04
2*784*34

.88
83.84

21$*71
S0S51o53

o85
67,69

195*00
80
955o44

*25
17*92

83,35
1,991 oOS

*25
19 25

75*00
l0783o48

IcOO
17a47

791o
70
2„414*02

loOO
19 o34

750*00
20542*27

*89
20*80

333*48
20
747o89

loOO
14 o
80

333*40
10854*42

loOO
8*70

583*40
1,478 85

loOO
7*87

541*70
l0
238o
00

Officert
*55
$M&f9*08
*70
Federal Roserve Hot* Xssnee
Offioors
*21
asplcgrtes
685
Besik S&fls&MitiOMS
Of f iM m
•H
3*25
i h SUm m
t U t t i U W l A AwOrtlMl
OffljtTB
•30
nqpl«gr*M
»Sdf
JL5f

297o94
1260
71

o7S
*55

385o02
77*57

111*28
177o30

a
25
lcl2

100*00
1570
94

470*00
720@38

,85
3*89

310*48
704*42

W

,85
3*97

375 <42
577»24

Loans, Rediscounts &
Aoceptanoee
Officers
Boployeoe
Securities
Officers
Sqplspoes
CumxMqr aad coi»
Officer*
$*3.$r*e«
Cheok Collection
Officer*
loa-Cash Collection
Officer*
tel«ri08
Officers
&9&9ft*8
Fiscal AfSMgr
OffiMm
aspisreos
AndltUf
Offioers
fefUpoM

fatal Offtarn
?otal lqplagrM*
U l i MUfcorMkl.
salsffios
(tfftmn

12,00
289*44
.89

M

$ tt.U?>20
3e.HT.tt

s u m

TBIJi
SalarlM M i tr Bank
Qff&Mrs
a«upM




11.11
288*91

$ ’,833*78
36,198.06

14*00 $ i00292o
20
290o33 8505899
47
*88
5,55

291*70
711ol5

13*12 $ 10.000*50
284*78 34,883.32

36

ADMINISTRATION COSTS
(Minneapolis Anly)
The chief itsm in ths General Overhead Function contains the
salaries of the Agent and the Governor* trader the general interpretation
of the Federal Reserve Board’s manual, no part of any other officer9
s
salary that oan he char>jed to another expense unit shall he charged in this
TJhit.

It is fairly well understood what other expenses should he plaoed in

this Unit and most of the Federal Beserve Banks try to hold down the Over*
head totals*

This hank compares favorably with the others in this respeot.
GENERAL OVERHEAD CONTROLLABL? - A2HINISTRATI0K

1927
Average number of officers
o r
$43,700.02
Salaries Offloers
Average number of -employees
2.25
Salaries Employees
5,116.85
Directors Heetixigs
6,269.36
Raveling Expenses
1,140.58
Officers and other dinners
1,202.08
Office supplies and stationery
580.55
Telephone and telegraph
844.77
Membership dues
750.00
Stenographic
230.41
All other
1,477.82
?$i,81£.44

1926
O F
$47,625.03
2.34
5,038.89
5,556.44
1,547.91
174,67
895.88
687.71
700*00
258.53
1,810.91
wscim'jsz

GSKShAL OVERHEAD »OM-CONTROLLABLB - lONlEAPOLIS
The following summary of expenses for this function is self-,
explanatory. It shows the expenses over which the officers of the bank have
no direct control, as they are the result of established policies. v e have
;
already been advised o . the proportion of Federal Beserve Board expenses we
f
most assume to July I, 1926. From this information we feel Justified in
estimating that our proportion for the full year will be approximately $6,000
lees than for 1926.
cost of c u m m c r
1927
1926
Federal Beserve Currency;
Original cost, ice. shipping charges£ 34.117.3S
$ 33,597.98
Cost of redemption, inc. shipping charges
1,482.41
2,361.23
Slipping charges on currency to and froa
member and nonr-meaber banks
28,067.70
27,151.06
Shipping’chargee on coin to and fro:: banks
7,276.78
6,880.58
___ 383.07
295.49
Cost of shipments Head Office to Branch
ALL OrKT?
x
Governors% Federal reserve .Agents*
Federal Advisory Conferences
Federal Reserve Board expenses
Shipping charges on securities




tad
C 1,766.37
23,135.56
192.22

1,680*75
22,595.76
964.40

37

m x t m - CAFETERIA.
(Minneapolis Only)
During the past year more offlee services were rendered by the
Welfare Department than in 1926 hut less hone and hospital oalls were made*
8ervioes wore 2,617 in 1927 and 2,492 is 1926. Oalls made were 27 in number
during 1927 and 63 in the previous year.

There has been less serious illness

on the staff in 1927 and a smaller amount of extended leave required« Sind#
the middle of April one person has perfonsed the Welfare duties and super­
vised the Cafeteria where in previous years there have been two persons,
tinder the direotion of the Welfare Secretary the annual preparation of dolls
was made for distribution to the poor of the oity and from letters received
this kindness on the part of bank employees is muoh appreciated. Sixty-three
members of the staff were sent flowers, when sick, through the bank olub.
■Comparative expenses for 1927 and 1926 were as follows:
1927

Salaries
Msdioal Supplies
Offioe Supplies
All Other

1926

*1,987.67
109*01
64*60
14*00

*2,066.78
99*84
90*02
146*96

*2,176*18

*2,402.62

The circulating library installed in 1926 issued 6,069 books during
1927 and seems to be appreoiated by the employees*
Through reduction in the expense of supervision and a charge of
t oents per serving of beverages begun in June, the net amount of Cafeteria
expense absorbed by the bank in 1927 was *7,228*49 or *1,100 less than the
saouat absorbed in /
1926* Vs are authorised to absorb one-third of the cost
of food and service eaoh year. We exceeded this proportion in 1927 by
*786*47* Xn 1928 we believe it will be necessary to absorb only the amount
authorised*
Tbs distribution of cafeteria expense for 1926 and 1927 is given
tolars




o c m m b Atxvb cafeteria ,sxpeisi

*
Salaries - Manager
Salaries - Cooks - Waitresses
Service Supplies
Olass, China, Furnishings
Oas - Fuel
COst of food
Miscellaneous

1927
* 682*72
4,899*97
1,766.24
99.82
160*82
11,766.90
19.09
*19,814.06

1926
*1,086.27
4,616*67
1,886*72
146*44
106.78
12,648.46
46*86
*20,829*09

Receipts trm employees

*12,090*67

*12,014*68

38

compabmivi m c T i a m n u n u n
SHOWISO BtMBEB OF OmCEHS, BDHBEK OT MPL0TO8, AMD KFBH81S
1927 J 928
_____ ____________ Offnrrimrlfri
--------------------

Somber of Officers

Average Bomber Bsqployees

122Z___IS __ 1 2 .
IS
25
2.15

20
15
m
.90
loOO

-

.82
1« 0 0
< ,10
1 .6 6

.90
1 .0 0
.1 0

35
o69

o20

,6 8

1 .0 0

*65
.28
o84
.94
loOO

066

.65
.25
loOO
1.20
1.00
o?5
26
.65
<8
,5
15.00

0
25
loOO
lo04
loOO

0
23

o75
028

*83

<,66

086
*60/
14c
21
13.28

.90

Expenses
1927
General Overhead ~ Controllable
General Overhead - Non-Controllable
Provision of Space
Provision of Personae!
General Service
Postage
Tailed Banlra
Loans, Rediscounts & Acceptances
Securities
Currency and Coin
Check Collection«
lon-Cash Collections
T U M I ignejr
£•(•1
Auditing
Bank Belations
federal Reserve Agent
XsoHBinations
Statistical and Analytical

Total Current Bxpense
fetal Reimbursable Expenditures
Proteat feea (Paid to employees
In lieu of salaries
Stock of Supplies (Vet Debit)




29o
06
5064
4.74

36< 7
,4
7.78
4.49

.?
7
3.89
4.05
j& n
302o
17 336,24

BzpenCM

.48
.83

068

8o29
27o90
8.85
73.42

22.35
5o47
90
12
19.32
66.43
18099
18 48
36,10
7.33
d60
<7
,3
3o72
5Q33
292o
42

2 o0 0

2.34
22.69
8064
64c02

Expenses

.1 0

2 o0 0

2.25
23.39
7094
64.28

61,3120
44
96,422o
46
152,185080
17,838o
71
79,651.06
33 812 29
34,792.49
115,591o68
200337.98
270
248o39
4X0394oS3
lU70
74lo29
270958o64
488
42?0
92
43,903.86
7,828.91
24,140.25
6,232.12
30
180o44
250609 o62
17,833 11
983D
443099

2 1 .6 8

2 1 .6 6

72.98
19099
19,84
12.24
9*0*

780
41
20.99
21o
50
13,90
9.59
0
44
o71
3o8L

s

2 .0 1

0

General Overhead - Controllable
Provision of Space
Provision of Personnel
General Serrice
Insurance
Tailed Banks
Loans, Rediscounts A Acceptances
Securities
Currency and Coin
Check Collections
Non-Cash Collections
Accounting
fiscal Agency
inditing
Bank Relatione
federal Reserve Agent
BxsolnBtions
Statistical and Analytical

tm im__ M3L_

64,295.51
$ 55,247.60
95,526.65
89,391o57
159,290o
24
145,486,99
19,020.31
20,268,00
77,998.70
82,675.76
34,436 96
32,896 33
270
027,61
33,7Slo57
137,385.24
163o
674.01
17,677o
02
19,949.72
16c
233o91
14o286o
28
45,336o
00
460335o
34
1170616o95
I25,X4wo25
270
370o
23
38 J77.59
51,806.14
49,633o69
30,941.72
34,1X1o37
9,543,35
6,537.73
24,603.76
224.480 VT
7p
2420
49
5,273.71
B.769„3X
2,841 11
29„?.2^3T
24,014o97
140879o16
16n685061
* 989,918.66 $ 1,031,008.63

*

956,937 30
19,948.97

$ 966,254.37 I 1,002,663.03
16,430.33
170219o33

4,308,45
20249 27
983P
4430
99

5,378 48
60iai,rr
6,883 60
10
066.48
$ 989,918 66 $ 1,031,008 53

39

gKEI&AL

CUB,

Activities o * - h Club have boon maintain'd alciJ£ :uch ,*r.ilar iin 8 to vhose
x te
?
of 1926,

The spirit shown ‘y the employees oach successive year s'nns a - i . ? o < . e n
e... * * i r v ; . t

over that of former years.

At the present tirm the Club ha a a 100 p n e**at rA^rtbersidp*
i*

There has been s c o broadening
ot

educational feature aut additional
''

amseiiients have been provided in order that wer/ richer of the Cl
aged to take part in somo ' ' a c of study or recreation.
.rnh

r i . i he encour­
ufh

This is as true of the women

of the bank as of the { e . The reduoed number of requests for l^ave of absence on ac­
tn
count of ill health may he attributed in part at least to the recreation provided for
Club members*
?/hile many eduoational features ars provided, the more important*fundamentals
era not furnished in the bank but through attending t'ie various course* provided by the
American Institute of Banking and by night classes at the University of Minnesota*
fee# charged are refunded to each employee obtaining the necessary credits.

The

- e have pro­
?

vided §300. for educational refunds in 1926c
Our efforts to prorut * healthful rports has also been h. ipful in developing in­
terest in other institutions c: the City,

Our Diamond Ball tearu has won the Champion­

ship in its division for several years, having a ain been named the champions for 1927*
.
There are twice as r a . . o o , -caking part i* Athletics as compared i 5 l tho year previews*
a r y vk:.
.>
vt*
As further evidence tt» t the cooperative spirit ooaliitjes, over one hundred and
a
fifty dolls were a(
r
;ain supplied by the officers and dressed by the young ladies of 5 : banK
le
These dolls, with candy and toys, were turned over to the Public ‘
Welfare Committees for
distribution arsons the poor children of the City at Christmas,
A series of six lectures was given by 2frs. Stemble, an.1 other social gather­
ings have been held in the lounge room the entertainment having bevii ;
.corided largely
by Club members.

These westings together wit1 others held o\;tsidi? of t>e hank have
*

brought about a greater feeling of harmony i \ our organisation0
»
*****
The budget covering club activities is practically the saie as for last year and
is classified as follows*




Athletics
Velfare
i
Bouse Coss&iittee
Educational Ref.mdg
Contingencies
Less dues

#

535*00
200o00
2,13So00
300*00
150c
00
4 3,320oCO
fr66.0 ;
>

To be provided by bank# 2,755 o0Q

40

GENERAL SERVICE FUNCTION
(Minneapolis Only)
The General Service Function includes tho activities of tha Bank,
which, by their nature

are

for the benefit of other functions of the bank.

Total costs of the General Service Functions for 1927 were |79,651o06,
with cne officer and an average of 64o28 employees for the year

compared

with $77,998o70 for 1926 covering one officer and an average of 64o02 employees.
Administration expense for this function decreased slightly for 1927
being $6,0l6o98 and $6,057o61 for 1926.
The expense of maintaining the stock room and in connection with the
purchasing of supplies decreased slightly from the 1926 expense of $2,898*19,
being 12,877.35 for 1927.
Gross costs of the telephone unit were $9,625o15 for 1927 and
$9, 559o42 for 1926o

The amount of tolls distributed to other functions in­

cluded in the above amounts are #2,667*76 for 1927 and $2,925054 for 1926, leav­
ing the net telephone unit expense for 1927 $6,937*39 and #6,633*88 for 1926*
Although the amount expended for tolls and rental of equipment for 1927 was
#6 ,317*79 as compared with $6,574*54 for 1926, the net cost remaining in thi3
unit Inore&sed through increases in salaries of operators and a deorease in the
amount of tolls redistributed to other functions,,
Our Telegraph unit expense is discussed in oonnection with the oper­
ation of our leased wire*
The expense of the Mail Unit (Ordinary) for 1927 was $8,284*47 and
for 1926 was $6,7450
47, a major part of the increase being accounted for through
the transfer of the mail truok driver from the Automobile expense unit to Mail.
She number of letters received through this unit during 1927 was 642,993 and the
nuatoer dispatched 1,002,602 as compared with 664,924 received and 998,206 mailed
during 1926*

Total letters handled for 1927 was 1,645,795 and for 1926

1,663,150*
Oost of operating the Registered Mail and Express unit was $3,274.67
for. 1927 and $2,842*45 for 1926*

Humber of pieoes handled during 1927 was

16#000 more than for 1926 of inodoing mail and 4,000 pieoes more of outgoing
mailo

A large part of the increase is attributable to the redemption of the

Seoond Liberty Loan during the year*
Duplicating Unit expenses decreased for 1927 from the 1926 total of
$4»518«&3 to $4,076*19*.

This unit operates the nultigraph, addressograph,

photostat and the ditto upon whioh this report is issued*




,

G f m u L service ramzoKs (cd.muR»
(Minneapolis Only)
fhe Protection Chit expense for 1927 increased from a total of
{21,243.93 in 1926, to.323,860.71.

This increase was caused through the

use of additional guards.
Cost of operating the Office Boys and Pages XXait decreased
slightly for 1927 as compared to 1926, the expense toeing *3,306.94 and
^,392.40, respectively.
Automobile T e i expenses decreased for 1927 from the 1926 total
fit
of 13',819.05 to £2,326.89, a major portion of the decrease toeing attributed
to the transfer of the mail truck to the Mail unit.
The cost of Equipment Repairs reflected an increase for 1927
through the broadening of the scope of operations of this unit.

Expense

for 1927 wae §5,490.31 and *4.826.38 for 1926.
Vault Ha!«ter4 j c expense increased slightly during 1927 over
vae
the 1926 total.

The costa vere $3,932.66 and £3,710.62, respectively.

( h expense of maintaining Files and Old Records decreased from
Ce
last year’s total of £9,105.08 to $7,450.5?* a reduction of $1,654.61.
fhe major part of the decrease is attributable to the decreaee in the number
e

of employees, cade x'ossible through a c : . - in filing methods.
huie
8teno.£
r&jt;hic Unit expense for 1927 was .18,698.39 as compared
f

with $17,508.50 for 1926.

The increased cost for 192? over 1926 is due to

an average of 11.17 persons employed for 1927, in comparison with 10.85
for 1926, and increased salaries*.

All the expenses of this unit are re­

distributed to the other functions served, on a basis of the percentage
Of time used by the;a to the total productive time of the unit.




42

GENERAL SERVICE
ADMINISTRATION

First Half 1927
Seoond Half 1927
Total 1927
Monthly average
First Half 1926
Seoond Half 1926
Total 1926
Monthly average

First Half 1927
Sdoond Half 1927
Total 1927
Monthly average
First Half 1926
Seoond Half 1926
Total 1926
Monthly average

PURCHASING & STOCK ROOM

of Offioere
Number of
& Employees Expense Employees
♦3,014.86
1.40
IcOO
3.002.13
lo40
loOS
$6,016.98
$ 501 o41
1.45
lo40

1.45
1,08

$3,067.57
2.990.04
$6,057.61
6 504.60

1.35
1.32

$8,828.49
-8,47.6.aa
$17,298.79
$1,441.67

DUPLICATING
Number' of ~

Number of
$1,421.68
1.466.77
$2,877.86
$ 289.78

?.06
2.18

$4,666.77
4.958.38
$9,625.15 e
$ 802o
09

$1,611.71

2.06
2.07

$4,903.13

$2,898.19
$ 241.61

MAIL
TEU5»RAPH
Number of""
Number of
Employees
Expense Employees
1.34 ' $7,7K.51
7.37
9.61
1.34
7.889.88
$16,061.89
$1,254.82
7©74
7 c04

TELEPHONE

$9,569.42 ♦*
$ 796.62

•

REOISTERSD MAIL * EXPRESS
Number of
E3cp.U8e ..
.
Employees Expense
$8,778.74
lo50 $1,578.85
1.695.82
4.606.78
1.98
$8,284.47
$3,274.67
$ 272.89
$ 690.87
$3,498.91
3.246.66
$6,746.47
$ 562.12

lo50
1.50

$1,427.67
$2,842.45
$ 236.87

OFFICE BOYS A PAGES
r HumVer of

PROTECTION
NunVer"
'cf

First Half 1927
Seoond Half 1927
Total 1927
Monthly average

3C
26
2 *89

$1,946.34
2.129.85
{47076.19
$ 339.68

15.50 $11,979.78
115«39 11.870.93
$23,850.71
$1,987.56

5o76
5o06

$1,755.44
1.551.50
$3,306.94
$ 275.58

First Half 1926
Seoond Half 1926
Total 1926
Monthly ecverage

5.38
2,97

$2,426.89
2.087.24
$4,513.93
$ 376.16

13.56 $11,221.22
14.31
10,022.71
021,243.93

5.61
5.59

$1,710.46
1.681.94
§3,392.40

First Half 1927
Second Half 1927
Total 1927
Monthly average
First Half 1926
Seoond Half 1926
Total 1926
Monthly average

First tialf 1927
Seoond Half 1927
Total 1927
Monthly average
First Half 1926
Seoond Half 1936
Total 1926
Monthly average

$1,770.33

AUTOMOBILE
» BEPAIRS
N o i e o?
irEr
Number of
Baployees n.
Employees
>WW>hJ>WWW»II.I» ■ t » Expense«>■« ■ ••*«.W+W •• - - Expense
*
<« ■* « ••.
•
-- 1* Tr ■'
* — !2015
lo42
$1,402.35
$2,781.80
2C15
924.54
.80
2.709.01
$2,326.89
$5,490.81
$ 193.90
$ 457.62
2.06
2.05

$2,180.36
1.638.69
$3,819.06
$ 818.26

2.00
2,00

FILES AND OLD RECORDS
Number of
Employees
Expense
6o06 ~nfi£877.96~' ~
3.572.61
5.S0
$^,450.57
$ 620.88

•

5,09
7.CS

$4,891.37
4.213.71
$9,105.08
$ 758.75

$2,481.76
2.344.63
$4,826.38
$ 402.21

$ 282.70
VAULT a/JNTENANCE
Number of
2.60
2o99

$1,765.60
2-177.16
$3,932.68
$ 327.72

2.70
.2.62

$1,786.25
1.924.37
$3,710.62
$ 309.22

8Tt;
socp. : ' X
a "HC
Number of
ft&ployees
Expense
C>9,409.02 •
11.19
9,289.97
11.15
$18,698.§9'
$1,558.25
11.08
10*62

$9,032.32
8.476.28
$17,508.e0
$1,459.05

* Toll oharges distributed to various expense units $2,697.7$
*♦ Toll charges distributed to various expense units $2,925*54




43

APDITIHO TOCTIOB
(Minneapolis Only)
During the past year there have been more radioal changes in
audit preoedure than usual and for various reasons*
These changes have
j
already brought about a more effective oheok on operations and other plans
in process of working out will safeguard to greater degree the interest
of this bank and our member banks.
The very rapid expansion in our custodies function, which began
early in the year, made necessary a complete revision of our handling
methods and controls*

Due to our plan of joint control of all cash and

securities by the operating and auditing departments, the various members
of the audit staff have had to spend considerable time in the vault making
it difficult to arrange other work*

With the ohanged procedure two

auditors are definitely assigned to the vault, leaving other members of
the department free to carry out other auditing work*

The man cheeking

current vault transactions wi 11 not be allowed to participate in any exam­
ination of the vault cash or securities*
Our check on securities outside of the vault is greatly improved*
Duplicate records are maintained by the Auditing Department and the records
of the Custodies Department are kept under daily oontrol*

The plan is

similar to the oontrol maintained over disoounts and the results are just
as satisfactory*

Sinoe establishing audit oontrols we have been able to

handle more promptly the increasing number of verifications received from
examiners and banks and th<? records are in such shape as to facilitate our
own listing of securities for verification with members*
The necessity for rewriting all the security records and the
change in filing of securities within the Vault prevented,, during the last
e

half of the year, a complete verification with member banks*

However, a

verification has recently been obtained of securities held as collateral
to Government deposits, and also the securities held as collateral to ad­
vances made by us, making at the same time a physical count of these




•2»
seourities*

A partial verification of securities it not satisfactory in

the opinion of your Controller and it is the intention to make future oheoks
with the member banks covering every item held for those banks as of the
tone datoo

Any other auditing of seourities will be in the nature of an

internal-oheok*
In July a defalcation was turned up in the Colleotion Depart— nt
whioh involved a number of employaesand also a half dosen former employees.
The Colleotion Department has always been the most diffioult to oheok in
any bank*

After spending oonsiderable tins *studying out safeguarding

measures, we made a number of changes in prooedure and now have a system
of cheeking whioh should be entirely adequate*
Another apparent weakness in our operations is the handling, of
registered mail and express within our office*

Vo losses have ooourred but

the eontrql over the disposition of seourities has been by no means satis*
factory*

TMder a new plan to be installed January 2, all delivery sheets

will be made in triplicate and each department’s packages will be written
up separately*

With the exception of currency and coupons, all packages

will be verified at the registered mail cage and all reoeipts taken will
be for amounts rather than packages*

Our system of internal clearances

will be much improved through the changes noted a the information given
nft
the Auditing Department will greatly assist in the daily checks*
Plans for a closer control over the ordering of supplies are now
being ooneidered and we feel certain will result in oonsiderable saving*
Other suggestions will shortly be made whioh should lessen work, inorease
efficiency and lower the operating costs*
In bringing about ohanges whioh safeguard the bank and in some
instanoes lower the expense of another department, the Auditing Department
expense is frequently increased*

The ohangee in Auditing prooedure? to*

gether with the expansion in volume of Securities, has required the addition
of another senior man to our auditing staff*

For 1927 the total expense

of the auditing function was |24#140«26 and #468*50 lees than the total
4

tar 1926*




Our estimate for 1928

45

DISCOUNT FUNCTION
(Including Helena Branch)
In discussing the above function for several years past* most of
the comments have been confined to the amount and number of discounts made
for member banks p whereas s the discounting of bankers acceptances allotted
by the Investment Committee in Hew York or purchased from other Federal
Reserve Banks t 1ms contributed more to our income than the regular discounts <
•
>
These acceptances are not seat te Minneapolis D but are lodged with the Agents
of the respective banks for account ef the Minneapolis Agent c Schedules are
sent to us and are recorded ^ust as completely as though the bills wore ia
our possession

There is considerable labor involved and the Auditing D >
e>

partment maintains a control m maturities and earnings similar to that e»*
tablished over the discounts of membersFrom the statement submitted it will be observed we hare received
steady allotments of bills from the Investment Committee in Hew York through®
out the years 1926 and 1927 with specially heavy allotments during the last
quarter of 1927*

In nearly every month since March 1926 we have also made

purchases from the Portfolios of the other Federal Reserve Banks*

The total

number ef bankers bills from all sources during 1927 was 7^655 with a dollar value
of #§7®761e
000o

In 1926 60
O86 bills were received amounting te f 83o656o
OO0~

Average daily amount of acceptances held in 132? was $10^560*000 in comparison
with an average of $11?
4280
OQO held in 1926a The reason for the lowered
»
•
*

average in 1927 <m a greater amount of purohases was due to more short tern
bille received in 1927 than ia 1926 c The amount earned on acceptances last
year was alee less than in 1926 due in part# however0 to the lower average
rat* prevailing in 1927 e
Advances made member banks were fewer in number than sirn&e the
early years of the bank although the total amount discounted was greater
then in 1924 and 1925 0 The number of notes rediscounted and collateral
notes discounted at MianeapOlic and Helena was 10*040 a d the total value
nt
1141,051*000# This was a reduction of 20500 in janfeer and $81*000,000 in
amount fro* the 1926 figures 0

Of the total advances §180p40S0
000 was in

the f e m ef collateral notes and discounted for* less than 15 days ia a&sgr




46

oases• Rebates were also allowed on over half the Botes rediscounted
Vhile the amount borrowed by Twin City banks on 15 day collateral notes
was considerably less in 1927 than in 1920; there was not a great deorease
,
in the number of notes handled
The number of different banks served was 276*

In 1920 wo served

270 banks which was the smallest number since 1918 0 All States showed a
decrease in the amount borrowed during the year 1927 except North Dakota
which borrowed $1*1OO0
OOO more than in 19200 Minnesota showed the greatest
decrease due to the smaller borrowings of Twin City Banks 0
STATEMENT OP BILLS PURCHASED
Paper Purchased in Open Market
Amount
:?oe of Pieces
W7447ol3
January T U T ---- « g0
4o9020343o
O5
February 476
40311p
952o75
March
417
50S80P
418o45
April
266
40825p933o
72
May
400
501180
420o
00
June
544
20571P298O
94
July
280
2p
4210136o53
265
August
5*705^566*86
September 631
U d364d960o47
October
850
November
100
420.454o86
974
December 1020
120572f549o14
i
Total SSl4
I YfJBBSJBSi'M

Paper Purchased in Open Market
Amount
Noo of Piooes
8
41
...W ----- I 4 3 ’ 5 ^ T 0
4 356,S94o51
303
4 p p309 084
405
378
6,550,367083
442
6n122o
722(
,01
345
6D263p950e24
384
4P291r1930
88
366
6P803P555ol2
599
3,912,166.35
383
4P844n
649o60
392
487
4P705P5930
78
540
6fi70f
l i
059©15
1’

Paper Purchased from other P0 T o Banks
C
Paper Purchased from other F. R. Banks
---------- ---- 2527---------------- *------------ 1528----- ---------Amount
NOo of Pieces
I 75ti0
050o00
January - T T ”
1 lOOpOOOoOO
February
53
March
0OOoOOO»QO
24
5c719p
105o6l
April
226
600n
000 oOO
May
12
600p
00Cu00
June
25
700.000o00
July
19
August
i
I„8000196o40
September
99
50
401D285«01
October
347
4p
7000214o85
232
November
December
ln
000o209o91
49
Total n i l
T^^VOlToT^




Hoc of Pieces
(
«
1

Amount
V

10 027p167c83
519
m
m
)
2 p255o921o40
180
500p
059o40
32
20815097Qo51
118
2p000p560©
12
100
l;8000216oll
;
93
ln200P
069o98
58
" H O T ---- ‘I 2T>;5§^TO?oTT
r

47

COMPARATIVE STATEMENT SHOWING VOLUME OF 7/ORK
NUMBER OF EMPLOYEES, SALARIES AND EXPENSES OF LOANS, REDISCOUNTS
? N ACCEPTANCES FJHCTION.
,D
(Minneapolis)

Number of
notes
redisoounted
First Half 1927
Second Half 1927
Total 1927
Monthly average
First Half 1926
Second Half 1926
Total 1926
Monthly average

Monthly average




Number of
pieoes of
paper
purphased
2,869

388
375
763

507
442
949

665
605
1,260

1,931
SiS*
4,586

7,636

643

64

79

105

382

636

4,575
6,419
9,994

386
565
951

830
822
1,652

606
1,195
1,801

2,322
3,186
5,508

2,738
3,348
6,086

833

79

137

160

459

507

o35
•62

Officers
salaries

Number of
employees

12,387.44
4,250o
02
#6,637o46

5ol5
5o79

o35
035

#2,367.50
2,367«,50
14,735 00
| 394,53

Employees
salaries

Other
expense

Total
expense

5.86
5o42

$4,962.03
5,412.77
110,374.80

$1,582.69
1,743.03
$3,325.72

$8,932.16
11,405*82
$20,337.98

$ 864c57

# 553*12

Monthly average
First Half 1926
Second Half 1926
Total 1926

No, of Notes
Number
reooived as
of notes
collateral to rebated
general line

4,270
3,440
7,710

Number of
Officers
First Half 1927 „
Second Half 1927
Total 1927

Number of No. of Notes
oollateral received as
collateral to
notes
discounted bills payable

$ 277.14

$1,694.83

|5,051c48
4,788.52
$9,840.00

$1,240.63
1,861*39
$3,102.02

$8,659.61
9,017.41
$17,677.02

$ 820c00

$ 258.50

$1,473.08

48

DISCCOHT 0PEBA71QRS
a>

dumber o f Banks
Served

cnth

1927

<
?o

January
February
arch

19 ^

6s
s6

*3
97
131

April

112

15U
1W
l*H

«y
JxOM

Ju ly
August
September
October
HoTember
December
Ho. different

129

130
130

122

7*xk*

123

275

62

100

68
78

107

76

.

106
ld k
ZJO

ifamber o f Item s
R eceived
M 25

36
So

79
122
1^5

1J5
l*&
12^

75
110
117
m
290

Amount Hadiseoonted la V s

1926
671

1925
959

881
1,251

1927
788
564

1,112

1,152
1 . 2H0

l.UOfc
i.H o i
1 ,5 12
1,060
6H6

l fU ^

I.6U 7

I*5*?
16.25U
$1U1.0J1

482
940
1,102
967.

i o souo

12 .51U

11,492

1,211
90S

16,406
11.59*
10,994
16.777
27.755
27.057
30.359
26,311
12.521

$221,888

8,222

1.50 2
1 , 15*

1.331
gU2
2S2
513
6fc6
_ 66U

11.163
15.253

19.740
13.35S
14.63?
24,274
10,454
3.398

560
709

522

1

&
6,655

15.688

8,110

SBZ

2,485 !
'
2,511
I .665
7.881
4,811
*{.387
§.238
16,1*8
5

11,628

13.615
11.278
-

2*122

♦92.374

7 om *s 0? ^ D I 8C00STS
:?orth
Dakota
Ho. Pieces
Rediscounted

1927

1926
1925
192U
1923

1922
1921

1920

2.930

'3,006
’,385
4

2,928




1927
1926
19 ^
192&
1923

1922
19a

1920

v«nt«in

2.555

2.657
3.755
3.655
7.450
3,518
11,0 14
24.395
12.939

1.554
1.569
1.575
U.S38
9.5<a
14,400
19.718
13,052

1,474

10,204

5.5<*
5.9S2

8 ®
36,268

14.9%
, 8,546

■lnnaaota
Total Amount
Bedlscotmted

South
Dakota

$12U,1«?;,53S.05
2Q3.958.580.27
73.903.670.18
6U.093,222.03
232,
202 , 7 7 .6 5
3

97.456,500.97
474. s.340.56
33
735.151.853-61

6,633

‘
‘.913.712.1?
3,425.108.34
12,029,8U0.01
19.5»,9»tt.l9
20.768,013.06
67,058,283.53
50,33l.3S6.6*»

$ 4.720.293.29
6,101.060.36
8,3?3.649.W
13,450,287.56
14,272,082.70
27.8*5.394.41
91.838,597.01
87.875.6l6.4T

Total

206
267
601

13*
*5
136
92

977
1.750
3.717
2,108

815
382

l4o

210
U78

$

1 ,902,915.72

2,108,395.56
1 ,79 2 . 1 1 .9 3
1
7.472*950,36
1 7 . 9 7 . 1 7 .3 8
9
3
28.370.089.12
6 5 . 9 8 . 7 7 .1 5
4
9
53.592.37fc.96

io,cfeo
12,51**
11.592
27.413
35.392
*7.933
104,234

73.275

Himmtlii

Hontwua

■ i f t PfiiWtft____ South Dakota
igtl

$ 6 , 013, 983.38

-n.coMln

Jotid.

2,088,477.69 $ 1,817,014.42
2,069,
500.00
2,427,638.

$

‘
141,051,222 .55

, ,
2,407,577.24

92.374.6<*.ai
100,354,573.8290 , 5 1 ,
0
926 *
!
i93.oa4,«n.;
730,662.0*.
953. .76 .
391 3

2*214.195.91

2,079.395.33

3 . 5 8 0 , 6 3 0 .4 0
1 0 , 5 2 ^ 1 1 .3 8
3

2,715.870.41

1 228 878.58

8,181.334.45

20.39t.l*9-10

11.
530 ,9 6 .7 0

19.5lS.3W.i9

6,924,176.23

221,888,887.06

SLOSgP BASKS
At the dose of December 1926 the unpaid liabilities of 97 olosed
msa£ber batiks to us were #1,815,276*85« During 1927 the amber of banks closing
was 21 and of these 9 did not owe us anything* The remaining 12 added
#561,274*65 pliabilities, waking a total of #2*166*851«46*
Collections made f n a all souroes la 1927 aggregated #1,214,486*27
learlng a net balanoe due froa elosed banks of #952,118*19* Of this aaount,
however. It has bean determined that the liabilities of 7 banks aggregating
#95,621061 will be impossible of collection and accordingly a charge of that
anount was made against the Speoial Reserve Aooount In Deoeribero Hames of the
banks frea which recovery nay not be made, and the unoolleoted liabilityof
each, are given In the Deoeaiber report froa the Closed Bank Department e On
December 510 1927 the nuriber of banks on our olosed list having liabilities
to us was 72 p including the 7 banks mentioned o
As security to the liabilities of $656,495*58 notyst paid or eharged
off, we hold $3p707©980o22 of papero In addltloa, wo hold #217,192*08 of
paper olassed os "worthless* whioh was collateral to the advances of the 7
b a m charged offo
Vp to the close of 1927 we had received payaent froa 186 banks of
original liabilities of $7,127,285*22, and in addition obtained #192,270*61
In Interest and >)160p548o54 of colleotion expense 0 Unpaid expense aooua&lated
to the end of 1927 was $358,407*69* During the past year $36,629*18 of
expense was recovered, the greater part of which was Incurred prior to 1927©
Interest collections made were #52*745*37 froa olosed banks and #4,6959 6 6
froa other advances made to protect our Interests*
A material reduction was made In the expense of the Olosed Bank
Function during 1927 and further heav *reduction will take place in 1928*
The average nuibor of employees on this work was reduced from 36*74 In 1926
to 22*35 la 1927,
Soae of the reduction In olosed bank expense was through deletions
while a number of representatives have been assisted to othor work in the
bank* Traveling expenses should continue to decrease but it is difficult to
estimate the possible reduction In legal fees*

COMPARATIVE FOXCTIORAL EXH3JSE
1927

Average number of Officers
Average susbor of £saploy®es




17„531o28
47,117*77
21,711*14
670o
14
487*16
130146ol5
9^928.06

§ 19*500*00
56,269o56
28,544»13
777©66
926„87
19<,584*18
11,983<>64

# 116,591-68

Salaries - Officers
Salaries - Employees
Traveling Expense
Printing, Stationery and Office Supplies
Telephone and telegraph
Legal Fees • Outride Counsel
.All Other

1926

£ 137.38e«24

1*66
2
3

6

.

2,00
74

50

£ L Q.S 12. l A i l

li l K
first Rational Beak
first fictional Beak
first Rational Bank
first Rational Bank
first lational Bank
first Rational Beak
farasrs & Merck. Kat9l Bank
first BitioaaX Bank
first lational Bank
' H m ers Rational Bfcak
first Rational Bank
first Ratioaal Bsak
first Bfetieaal Beak
first fetional Baak
first tt&ttoasX Baak
*Hr first Xatioasl Baak
flret Sational Baak
first Ratioaal Itfk
first Rational Baak
f*oplae first Rational Baak
fUtiieas fetioaal Beak
Bational fanaers Bank
Rational Ifcraers Baak
9l*st Rational Baak
first Rational Batik
rflrst Rational Baak
first Rational Steak
Oitisens Stats Baak
Dtrosrs Stats Bsak
first fiational Batik
first Stats Bsak
first Bation*l Batik
Harrsn 2&tional
first Rational Baak
M i s Rational Baak
Oitisens Rational Baak

Tint
 Sational Ink


AWRXSS

ira ru
Balaton
Beaver Creek
Bsnsoa
Brandon
Oannon falls
Clinton
Detroit Lakes
Bodge Center
folds
Grey Bagla *
Glenwood
Halloek
Jasper
Lariberton
Laneastsr
maassota
Montevideo
Olivia
Ortonvills
Osatoana
Bed Lake falls
Redwood Mils
Boyalton
Rush City
St. Cloud
St* Peter
spring Talley
Qim
. Salnut Grove
%rrsa
barren
Veils
*ells
Worthington

B IPS'; S I

Si'JLAUTSS
601.92
iK)} 2
+.U

101.87
267*58

1 , 310*38

££

K U .m i !■ &
}
:U1.’T2KA';C3
UIKKBSOTA
50b. 71
*33.93
103.30
168.99
858.38

2.1£ILLII»

LEflAL

91.00
W.Sg
12.10

C .^ H A ‘
Y R .% X
3EPSKSE
21 37

1 , 11* .0*
0
863 8*5

62 62

137.50

2,5 o
83 * 7
37M 8

270.19
520. 0*
2,681.2*
2*4. 5C
213,<5<5
. 1 ** 07
n o 69
13 . 09*.62

1 1 c60

3^.80
2 , 065.

1 , 825,00

101.69

3S.3S
-35
1*7«35 *
*j60.S 2
13 coc

23.90

71.11

1*008.35
30k ,2 h
1 S50. U
6

1*
58,00
175.*5
57 73

£ 3
5*3.71
329.02
2*9.33
59.76

517.76
296. *0
257.3*
88. 6C
.
69.59
59.80
130.35

72 75
2C
0.20

939.75
358,1*
157.31
189.02

802.2S?

118. 55

132.61

12 34

55.112

ia 3 . 1 i*

191.30

2 , 1*
82.67

1*1*2.90

205.98
219.07

TOTAL

10 , C
&
22,50

.*7.72
*0.52
2 ,* 13 .15
2.25
15 1.5 1

O'TER
f**O
t ‘’ V

3.00

2^:50

15 K 63
68.75
H
6.55
6.791.32

11 > 1927.

1 ^5,16

13.90
^3,00

353.35
36.35
258.51
1.827 .17
U9?,69
1.61)0,80
120.77
1 , 580.26
1 . 05U.21

15,00

62.25

126 15

213,95
1'4’<.07
n o 69
10 16 9
9
!
A

36.35
1 .8 ? 7 ,1 7
**92 69
1 „6*0 . 80
120 77
1., 58O
..26

33765
725.26
266. 0*
362,20

166,0?

39 70

739.00
7^ )1
356.99
560^49
28*.3$
867.3*
1,136.73
850.65
50U.U7
593.76
111 25
1 , 283.65
2 9 3,4 3
715-33
379-3*
1 09.65
*
116,23
1^5 «^9
1(0 00
657.96
X3J55
11 ,365,21
23.7il.96
*.673.22
7.00&.79
A * Mtoived in settlement - Absorbed l r t e
g i.

270 19
520 0*

1 25.72
*

I3 * ,l°

166.77
12 A S
1,3 5 9 .12
12 25
7.72

l,l* e O
U

635*36

kjao

75*1°

RECOVERIES

337.65
725.26
266, 01*

5.583.R2
1,175,*9
66321*
“ 79
*97

1 ,1 7 5 1*9
663 2$

1.173.30

2,81*8.92
2 , 060. 13 .
2.677.1*C
7

*3 . 1 9

*^7-79
1.173 30

671.37
1..093.78
*7.*98.37

2,677 *0
671.37
1.093.78
17.905.81

1* 5 .5 1
8

*85.51

T1T
S2
19 3 6 6

83

5.96

l»»3oOU

in

A DB
0 B 88

First*National Bank
Alexander
Anaisooee National Bank
Anamoose
Fi-st National Bank
Beach
Firet National Bank
8Ub«*
First Rational Bank
Brinsnade
Oaiido National Bank
Cando
Cayalin
First National Bank
Citizens National Bank
Crosby
First National Bank
Crystal
^iokinson
Dakota National Bank
Qolra
First National Bank
^ahkinson
$iii*ens National Bank
CKisens National Bazik
JSnsstonm
** Moure
Ffmners National Bank .
Osvtlitr County Bational Bank Langdon
Lansford
First Bational Bank
Lidgerwood
First Bational Bank
tferohants Bational Bank
landan
l
First National Bank
Marion
First Bational Bank
Medina
First Bational Bank
Mohall (1st suspension)
First Bational Bank
Mohall (2nd suspension)
Oakes Bational Bank
Oakss
Rolette
First Bational Bank
First Bational Bank
8entinsl Butte
First National Bank
Stanley
Streeter
First Bational Bank
First National Bank
Tolley
First Bational Bank
*owsr ^ity
Tomaer
?irst National Bank
First Bational Bank
*urtl# lake
Walhalla
First National Bank
Willcsr City
Merchants National Aside
Willow Oily
First Bational Bank
Merchants National Bank
Iflihlfflim
First National Bank
Woodworth




CI
V

0 L 0 8 SD BASK EXPENSE
T A B IN *
RVL Q

OVERHEAD

m in k a c
a t xbb

bcrobs

621*68
166*82
688*98
69*64
98*76
1,820*86
610*06
600*00
1,912*69
76*87
2,461*98
46*16
2,466*71
99*46
2,887*86
226*92
1,200*00
68*97
8,806*69
7,719*66
79*92
1,892*64
669*28
196*64
1,181*80
96*18
266*78
676*12
611*89
60*66
808.06
826*00
168*72
1,466148
iM/uri
6»tfi*68

TJ iT
fl .

710.77
80*69
864*18
12c76
4*22
928*89

106*77
881*66
1*128.17
76*41
. 66*74
798*86

222*60

169,69
1,079*09
119*61
1,716*66
46*18
864*66
v: 7*66
..
1#614*69
106*89
964*80
68.88
1,606*47
1*600*06
64*04
1*071*98
686*62
169*10
962*06
98*47
860*67
786*21
101*17
417*66
186*71.
266*98
66*61
l#Q|t*66

189*67
100*00

888*46
664*62

206*86.

8,484*00

876*94

96*89
11«86
961*61

1*Q66<^7 .

190*B0

26*00

279*81
216*78

249c20
67.26

66.00
661*67
209*70
448*92

101.00
818*87
•78
178*80

140*48
7*66
917*08
8*117*70
126*08
687*66
142*09
26*98
784*06
1*00
2*96
614*88
1*00
16*22
22*40
6*00
11*86
686*80
1*880*77
1*226*88 ,

46.27
908.97
114*70
660.99
149.68

TTL
OA

1,661*77
64So69
2, 626*04
864*48

164*71
8, 086.10
610*06
1, 687.94
8, 646.40
268*14
7, 641*16
189.66
4, 881*68
116*81
6*691*10
468.01
8, 176*22
274*41
8, 067*86
18^*19.47
869*99
8, 812*14

BBC0VKRXB8

646*69
2, 626*04
864*48
164*71
8, 088*10
610*06
1, 687*94
8, 646*40
268*14
189*66
4*881*68
116*81
462*01
8, 178*22
274*41
269*99

i*m.64

494.99
122*04
6f*87

•

892*67
8, 861*82
190*66
620*40
2, 186*71
714*66
1, 604*91
684*96
666*60
261*66
8, 898*77
12*216*08
6*884*01
K < m :k

892*67
190*66
620*40
2, 126*71
714*66
1*788*94
684*96
866*60
261*66

w m m

1L0S
BUS
farnera & NnNh. Bat*l l ^ k
first latioaal Bank
Big Stone City State Bank
firat latioaal I n k
Bank of Brookiaga
first Rational Bank
first latioaal Bank
first ft’
tioaal Bank
feifbock National Bank
firat latioaal Bank
first latioaal Beak
Batett Batioaal Bonk
flrat Ifetioaal Beak
first Bfetioaal Batik
flrat Satloaal Baak
firat Batioaal teak
Oratory latioaal Beak
.farnera * Ifardbu State Baak
Peoples Batioaal Beak
first latioaal Baak
Beaard Batioaal Baak
firat Batioaal Baak
first l a t i o a a l B a a k
fhmars Batioaal Baak
first Batioaal Bank
firat Ifetloaal Baak
first latioaal Baak
first latioaal Baak
first Batioaal Bank
Western latioaal Beak
first latioaal Baak
first latioaal Baak
firat latioaal Bank
first latioaal Baak
Citisens Baak 6 Trust 0o«
Security 8avinga Baak
first 2
&tioaal Baak




ZZ.L11L11

manure &
MAIfttSSANCg

AimaiM
Aloaator
Alexaadria
Big Stoao City
Bridgaaater
Brookiaga
Brookiags
Oarthaga
Gaatleuood
Chamberlain
daar Lake
Oolaaa
Beftaat
Blkton
Baraka^
Frankfort
Gregory
Gregory
Hoda
lot Springs
Ho«ard
Howard
Bnoa
Kennebec
Lake Preston
laka Preaton
McIntosh
Madison
Milbank
Mitchell
Mijtehell
Morristown
Oldham
Oaida
Barker
fepta&tr
b *»i a oitr
Salon

11EK

100.83

478.08
*•6.3?
2.937.9&
4,304.22
»7o°l
642.38

MOWS MKPTA
13M0
5*1.72
10.00
TO.Tk
1.073.03
2,362.24
26L.34
SI5 . 5 1

1,285.76
‘• J K B
?*.«
450 .ll
401.04

MttlL

211.30
784. a
31.25

882.58
68.00

132.15

9 . 107.20

5.420.67

223.56

288,54
134.20

319.7 »
*

SES

25 00

l60„S2
4.583.96
&31.57
8.525.33
1.340.18
1,378.24
170 .6 3

.967.07
359.18

li526.9U
270.30
499.37

25.00

2 ,6 9 5.38

*35.83

1,128.73
1,228.46
9 1.19

947.12
115.38
53®.67

408.89
113.15

1,031.36

834.03

8.96

648.58
290.50

16.60

208.06
10.0?
560.87
10.44
57.87

21J0.80
1,4o 4.75

12.07
126.09
65874.31
953.57
2,568.41
3.S17.30
1 .653,11
2,858.36

22.35
19.65
17.45
438.03
1,58?.s4
394.08
57.76
14.74
42.69
96.26
2,090.41
171.51
37.23
1*50.97
1,291.93
148.62
433.82
331.13

•OgAL

R3C07?.ms
240, SO.
l,4o4 75
12,07

126.09

6.874.31

9.2S8-53

548.51

144.39
5.S57.52

310.66
819.10

391.76

1,
112.86

88.04
41.59

205.85

3,652,04

( ss& jm
m
sxpsasa

1,837.46
2195.37
227.94
1,028.01

725.73
462.73
265.19
573.57
2 , 5 6 .3 3
2
S49.43
3?.55
124.58
61.24

866.34
3.030.93
1,408.07

OTHP.H
S
5.*7
23.19
1.27

362.89

717.30

M

38.90

1.198.19
ss 3.4£
1.309.5S
2,148.74
7.435.77
2,o?l 5»
30£
'.l5
2^.36
145.52
240.6g
22,475.80
528.70
936.ll
1,290.91
755.%
u 3538 y*

2,5$8.Hl
l c653.ll
1.19* 19
883 42
1,809.5-2

: 7M ?
-

1^5.52
•

1 .290.91

lc l3 9 .3 ?

16.3?

3,39^98
2,800.04
3463. *
238.16
2,207.38
293.40
1,187.78
72.32
1 . 932.35

3.394,.98
2,800.04
288.16
2,207.38
293.40
1,187.78

72.32
1.9 3 2 .3 5

K5

2L 2 1E . i l 1 1 I K 1 1 I I 1 1 4
OCT®

THATSXiira f
t
BltSK

JSBBS3L

m um s

C o m Belt national Bank
Sioox ?&lls National Bank
Citisens national Bank
First National Bank
Stock Growers State Bank
First National Bank
First fictional Bank
First Bfetional Bank
First national Bank
Hational Bank of
First J&tional Bank
Winner National Br.nk
First Hational Bank

Scotland
Sioux Falla
Siaaetcn
Springfield
Timber Late
Fabian
Wfcubay
Webeter
Wetsington Springs
Weseington Springs
Winner
Winner
tfoonsoeket

1 ,396.32
^7 3 .3^
315.3 8
1,
920.20
1.
097 .2s
*
99 5.53

utiaemma

i» m

XZPS9SSm
wSSSmSmS
SSSmSSS

orgasm
smuss

3am—

mspvmt

ig .

288*94




2US
2^1.59
1.282.IS
369.29
672.53
128.58

2,101.79
572.^3

3 . 6 %'
22
5
7*>.S0

72.00

26.66

3.827.68
82.93
^57.76
305.83
UttJff..

1.783.71
28.00
* 5 .7 1
10
181.15
68^-50

722.05

26.383.5J
t

21,5*
56.83

55.2S 4.C 1

0 - Sot complet© recovery.

2.U73.36

2. .

3 6 .5 6

578.12

2 ,2 7 1 .1 0

2 7 5 .1 6

721.75
1 . 2 9 .5
1

,
5,886.Wl 0
1.363.08 t

2,018.02

m .o i
3 .1 6

96.72

3 .5 1 5 .3 1

39.86
17.75
188.57
HK.7U

Difference waived in final settlene.it rnd absorbed by us*

8.956.**
721.75
1,129.1)0
6,886.I U
t

23. .5*
333

9.8HS.75
150.79
881.22

25-55

198.^»

1».79
Wt.SI. 0
05.55

JL2SL2L
1.179.52

137.717.5^

*1 ,678.55

iw/m w »
i

Big

Stillwater Talley bt.
first National Bank
Bellantine State Bade
State Saak of Balt
tamers Vational Bask
first Vational Bade
Aairtoan Satioaal BeJk
first Vational B n k .
I M m 1 State Bade
!
first Vfttional Bade
first national Baric
fiist Vational Bade
firstVational Bade
first State Bank
Stoofaasn's latioaal Beudc
Qttiseas State Bade
first national Bask
Beaton State Bank
first Vational Bade
Bdggtr State 'Bank
Vanaere * Mar. Stats Bade
first national Bade
American lational Bade
Bade of Conmeroe
firet Vational Bade
Stodonen’ national Bade
e
firet national Bede
Oomaoreial Betlonal Bade
Hardin State Bede
first Vational Bede
Havre Vational Bede
Banking Corporation of Mont*
firet national Bade
Bingiaa State Bade




iawt

innti

0SH38
VC K S
J FSB

cnmsau)
MPBHSI

com

SSOOfSBTSS

339.15
783-99
350.05

170.86
lfc.51
25*25

376.04

1 , 194.82
1 . 795 . 9s

336-26

26.96
327.00

1,19 4 .2 3
1,795-98
658.18
1,0 8 3 .6 1

tam an o *
ja m j M M
g

APPffffSS

Absarokee
Baker
Ballantine
Belt
Big Sandy
Big Sandy
Billings
Broadview
Browning
Garlyle
Oerter
Gharlo
Chester
Clyde Baxk
Olsite
oinbt
Odfterteon
Ont Bade
Denton
Dodson
Vdgar
Vnreka
Fairviev
foreytb
Forsyth
foreyth
fort Benton
Treeiio
Greet Ealle
Bardin
Harlowton
Hisvre
Helene
Bigvvood
Hin^ban

68U.23
470.44
283.10
373.2?
8W .63
299.51
2.763.79
1,902.32
3.820.0*
344.90
504.46
' 7s. 29
4
5.972.25
576.97
74.92
“ .997.78
836.93
1 , 834.94
145.19
236.46
951.26
18.78
211.95
255.92
3,314.20
, 193.65
6,091.04
1 ,369. 2U
797.55
3. 129.30

2,942.41
5 ,490.51

712.34
162.35
1,762.95

xaou

17.40
30,00

1.U9S.13

1 , 473.11
331.6?
95*9^
377.05
1 271.06
17.86
¥*2.89
99.05
1 . 335.23

.

737.30
1 . 953.24

S9.00

265.38

516.06
29. 0*
1
210.41
186.57
2,914.15
IkjM

4,282.62
1.643-55
753.96
3,413.79
2,022.22

5.572.90

44.15
15.71
^3-70

670.40
1,10
3.50
235.53

280.60
11.00
1,391.^
666.59
40.00
845.60

115.60
225.15

328.95
17 1. &
^97.12
1,116.87
24.60
445.53
13.25
l,l?6.i|4
3.60
157-59
.80
1.116.38
291.68
sal*.59
8.96
ioe.66
96.05
.00
104.31
643.55
128.31
2.U28.71
2,504.14
34.88
1,936.30
1.00
BIO. 53
1.770.89

347.12

91,08

44.02

10S.l;s

658.38
1,0 8 3 .6 1
1.8 6 1.3 7
790.81
4,728.68
3.897-57
6.454.17
701.M
1,061.64
959-67
8,413.47
21.46
l,177- 5
>218.7S
8,015.79
1,867.01
u,616.27
223.15
610.50
1,800.00
47.82
531.30
546.SO
7 , 152.50
480,26
14,194.21
6.183.52
1,626.39
9,324.99
1.00
5,890.76
13.059.45

790. n

701. 1?
1 , oa.64
959.67

2JS
ii
1 . 177.45
218.79
1,867.01

22J.15
610.50
47.82
531.30
*46.80
>
7,127.28 3

1 , 626.39
8,?40.12
1.00

CO
iO
CLOSED

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i

g

tunun
B*3g

AD0BS8S

fiATAT>tiM

n t i i s i
<miim

a

mnmgAiiof

.

ancFiKsa

lsgai

fl.fUth

■iiWV&k!

m n k s i .. .#2

first latlonal Bade
lactsrasss 8t a U Badp
first Xstional Bank
first latlonal Bank
Oitlssns latlonal Bank
first 1 st Bank of Vsipi Os
Bortbvsstsna Batlonal Bade
first flfctlonal Bcnk
first Xstional Baak
flssmssslsl Xatloxutl Bank
iasrloan Bank A Txvmt Os.
first 1sttonal Bank
•tats Bask of B feabna
first national Baric
first Satlonal Baric
first Sstional Bask
Stats Basic of flsntfwooA
first Batlonal Bask
first latlonal Basic
Stockman1s Batlonal Bask
first Batlonal Bank
Oitlssns Stats Bade
first Satlonal Bank
tflwvtap latlonal Bank
first national Baric
first ITatlonal Baric
first latlonal Bank
first Batlonal Bask
first Batlonal Baric
Ysllo*atona Tal Bk A fr Oo.
first BaUo&Al Baak
Mmr&mm Satlonal Baak
first Batlonal Bask
first Batlonal Baak




X&gNSP
Xisfsmsss
JopMa
Laafcsrt
lanrsl
Isvisto**
UYiB^itflS
lodgs Grass
*%lta
miss 01 ty
Missoula
Uoors
Ophela
Osvsgs
Plantjwood
Plantyvood
Poison
Poplar
Poplar
laus
Bosndnp
B on dv
3Koviid»Qj^

lop
BnAjaid
Savoy
Shslby
Sldnsj
Sldnsjr
StsTonsrllls
Shrss f osks
Yhrss foxks
? o«assxi&

Ut
^57.S2
66.05

lgloOO
H3W .93
>,*
4 173.55
4,228.80
U5H.9I

3.397.86
78.33
^*3.65
385.84
3.^75.89
2,890.88
U13.67

*21.32
*
30.00

1,13 6 .3 2
1,3 6 1.2 1

k fM

1.188.1U
2,255.67
796.13
2,275.00
1 ,-aw.ui

525.61
> * .7 0 9 .3 9
1 6 9 .9 *
1 .9 0 5 .5 5
> *,0 50 .6 8

3.733-u5
*61.£
3 .069.??
2,676.33
3,232.85
87.50
1.170.79
28.1*3
28.51
1,59*1.07
6.581.17
596.25
2,
095.98
142. 72

62.02

1,000.96
1.H67.51
l.**97.35
339.20
6a0.?8
856.71
798.7*1
2.938.15
. 90,39
2,1*66.66
2,108.01
2,l'4H.O**
9&.10
2 , 135.90
1 , 1 29.92
*

83.30
299.01*
5.00

20.50

25*»-35
97.’
jo
Jis.no
i,r;9.oo
66.20

800.7U
56.52
J 3 .9 9

111.5 0

18.65

3.632.81
796.9*
1,867 .51
19^.58
7*».15

281.87
8.32

71.60

1,97^.23
1.907.2H
22.85
587.68
87^.98
U .I 5
10
lUO.97

63.7s
115.69
276.51*
23.M8
-.521.75
9 U.39
0

109.05

i . !(59-!»3

t n .2 9

557.27

, 579.21
’4, 529.01
66. 25 ;

1,1*00.32
22.6-5
m .O l
?,9*»9.08
123.1*5
680.32

121.07

155.26
*

27^.97

1,17 8 .7 6
>8.90
‘
A6.27
12 U
.32
n u .39
8 5 8 .®
.76
787.80
972.20
W*.l6
205.13
2.63
21.00

1*26.23
“96.75
1 ,038.06
11,059.1*9
10,388.13
1,167.97

658.65
3 , 61* 08
0 .
6,655.08

3.339.3'*
2.623-23
3.309. .
1
1 ,669. &
1,1*73.21
10,895.66
3*7.5'
1 =
5,070.83
10,6^3.01 D
7,158.75
1 ,600.12
7,1E0.<IU
-.330.57
>*,972.87

’
'96.75

1 .038.06
•

10,
388.13
1.157.97

658.65

6,6^5.08
3.339-3'*
2,6 5.2
2 3
l,S&9.2i
*
1,i.73.21

* 7.92
5,070.S3
1 ,500.00

1 ,600.12
7,180.91*
105.15

U.30

106.15
2,914*72
13U.89

53.26
3.702.36

U.00

53.26
3,702.36
I5. i5.i9
7
1 .’
*37*05
H.233.H7
339.93
161.17

13U.89

l.>»37.05

161.17

tU3
e*08«p

m

i

i x n i t i

tununt

mm_______________________ *»”—

ocbib

r
m
.

*

ammo

xxpxsst_____ a S M S _______ rattt
•

momMmg

WIHU..6
HlXov Ovnk ftalt I n k
V i m artlooftl M
first fetlanal Bade
fiTit latlonal Bade
fiwt lationnl Beudc
Saoortty State Bank

till O n *
fllaall
Wtslf*ed
*imiatt
Wolf Point
Wolf Poiat
907AL M O R f U t ..........

2.5».<5
505*02
2W*92
«7-§p
359*6*
.1&7T
U.5,696,

2.190.60
7H8.62

165.30
89.10

333-5»»
_____ 31.10
80,855.90

22.50

208.52
518.28
159.30

11.00
21*1.99

5 , 1 6 .6 5
0
1,7?0.92
su5 .n1

.5 & . 1 S

.TO.07
257,1)77.££

SVu^i
175.SO
715* ~ 9
<
70.07
!S.331.f'6
’

T.O<*.79

7H3.1S

U7.U98.37

17,905.81

5.96

IH3. 0H

U85-51

U85.51

1 7 6 .6 0

26.ll
15.7fe.0T

39.faL.26

7 1 9 .2 9

5

I laoltid— 13000. M e a n t first rospaoslQA of w M o h $1500. vaa n o o v m d .
I
a Balano# neovifid t a a q r 6, 192S.

IlMBtlt
ItlMMlft

23.7U.96
i». a

11,365.21

u.673.22

iH2.a3

iarlli natoat*

H6.665.9T

20,150. to

7.09J.H2

17.560.51

3.55H.U1

95.02U. 75

28,765.80

M M kH a

55.2» . ®

3 6 .3 ® .^

21.556.83

2J.333.5H

1.179.52

137.717.^

Hi,678.55

80.855.40 T _ 15.lfiS.OT

*
39.-601.26

_5
«.*i£l.l6

Sl7.U77.3r;

8fi.Ail.5S

II.ISI.32

53S,-’Q5.S9

177.167.^3

M
oataat




lis.696.iB
2Ul.532.05

iue,898.oa

U9.O86.5U

8 7

,5 0 6 . 0 6

ctm
ssucnr ahd cois

fusc?icn

She rolune of currency handled has shown a steady irtoroar.a ae.oh year.
Receipts from member and nou-nenhor banks in our district a a u : c d to i>198,106,000
io.fe
during 1927 in conpari&an tith §189,656,000 during 1926, an increase of $8,450,000.
Carrenoy shipments and deliveries during 1927 to banks in our district amounted to
$192,056,000 in comparison with £187,074,000 during 1926 an increase of $4 *9 8 2 , 0 0 .
0
The number of shipments reoeived at Head Office from member and non-member banks
during 1927 m s 11*404 coxapared to llr36S reoeived during 1926 and the number of
shipments sent was 14,069 in 1927 as compared to 15,596 during the previous year.
Ifcile a greater volume m s handled during the year 1927 than in any
previous year the cost of handling has been materially reduoed. Sight currency
•ousting machines were installed at Head Office during the' early part of the year
and as m s anticipated, these machines have enabled our sorters to handle a much
greater volume, resulting in lessening the number of employees*
At Head Office the nw&er of bills received and counted during 1927 nas
88*672,125 as ooopared to 56,271*717 during 1926, an increase of 5,500,400 bills*
♦

111 the face of this increase la volume, the eost of handling currency m s reduoed

from 142*569*75 in 1926 to $56*246*14 in 1927* a reduction ot #6,125o61» The re*
duetion in costs m s brought about for the most part during the last half of the
year* She average eost of receiving and counting m s 46 oents per thousand bills
during the last half of the year, in comparison with an average eost of 61 oents
par thousand during the first half*
fhe volume of eoin handled fell off slightly during the year* Che num­
ber of pieces handled m s 10*965,476* amounting to #S*165,685o60* la comparison with
11*015*116 pieces, amounting to #8,489*556o00, received during 1926* The nm&er
of shipmsnis sent out* however* increased over the previous yefcr and is reflected
by cm Increase in the shipping oharges*

The cost of this unit was 14,523*37 la

19S7as compared to #5,968*89 for the previous year.
A Comparative statement for the years 1927 and 1926, shewing the amber
of employees* ausfcer of unite handled, and expenses of the currency and oela fam
e*
tica, la given on a succeeding page.
The eost of printing Federal Reserve Hates* redemption costs, cad chipping
charges is a result of established policies* T i officers of this bank have no
hs
control over these items ami the expense* therefore, is charged to General Overhead
Horn-controllable funetiom rather than to the carrenoy and coin function*




Following is a comparative statement for the year? 1927 and 1926,
showing the c t of these items a
os ,
COST OF CURRENCY, GENERAL QTCalEAJ) HPIT-CONTROLLABLE
(^inneapoils Only)
1927
1926
Original cost of >' K. Ifotes in­
■.
cluding shipping charges
$ 34,117o33
33,897*38
Cost of redemption of F. R. Currency in­
cluding shipping charges
1,482.41
2,861.23
Shipping charges on Currency to Member
Banks and from Member & tfon-TIenfeer Bank#
28,067o70
27,151*06
Shipping charges on coin to Member banka
and from Member and Non-member banks
7,276o78
6.880*58
Shipping charges on currency and coin be­
tween Head Offlee and Branch
383o07
296o49
TTF$Tf38
(Helena Branch Only)
1927
Shipping charges .on enrrency to u e f e
lacr
Banks and from Member & Non-Member Banks
Shipping charges on eein to Member Banks
and from Member and Non-: ember Banks

1926

£ 30981o64

4,917*22

1,300o41
V'Y2%Z'M

887o39
T"T^cor

CURRENCY SHIPMENTS TO AND FROIS MEMBER AMD NOil-fcELBER BATIKS
(Minneapolis Only)
1927

J U m *y
February
tf&roh
April
May
June
JUly
August
September
October
November
December
Total

NUMBER OF SHIPMENTS
Received
Shipped
Shipped
Received
From
From
To
So
Member Banks
Non-Menber Banks
" 98?
14
" " W "
2
682
982
11
2
855
1,136
4
8
904
974
1
923
7
2
917
1,045
10
1,021
1
1,060
9
1,077
1
6
1,082
1,299
7
923
2
1,757
6
1,010
1,440
3
3
992
1,156
4
7
5
5
1,466
921
46
T r , m “TiydlfiT"’"
w

Total NOo of Total No* of
Shipments
Shipments
Received
Sent
siar- ■ .....79?
984
- 693
859
1,139
904
975
930
919
1,056
1,022
1,078
1,069
1,306
l0
O88
925
1,763
10
013
1,443
996
1,163
926
1,470
1TC
'4CT .
aSsw

SILVER COIN RECEIVED FROM AND SHIPPED TO
MEMBER A H NON-MEMBER BANKS DURING 1927.
!)
Silver Coin Reeeived from
Member and Non-Member Banks
_ _
_
UianeapoJXi Helena Sraneh Combined
jfaMfly T w ifsr
t w j m —
T O r
February 217,748
16,137
233,886
Marsh
215,639
73,221
288,760
April
184,665
17,181
201,836
May
179,233
9,488
188,716
June
169,875
21,247
190,622
JUly
216,864
26,890
242,764
August
263,781
80,000
293,731
September 176,689
44,212
220,801
October
229,788
19,260
249,043
Norejtiber 200,767
14,612
215,369
Deoeciber 170,624
20f644
l
191,068
Total §ig U ; m
B




Silver Coin Shipped t«
Member and Non-Member Banks
Minneapolis Helena feraneh f o c b n d
iflXe
y "" W $ 5
W
*— T 7sa— c w , « b■
18,2*5
114,090
97,845
165,935
26,600
196,636
27,828
186,448
168,920
191,600
24,340
216,840
806,835
71,866
876,700
818,556
66,220
884,766
75,708
410,080
364,325
108,066
681,510
478,445
94,147
426,077
331,980
60,878
810,066
249,190
88,706
273,162

COMPARATIVE S*AIBO T OF CURBEHCT ABD C O H TOHCTIOK
SHOOTIG BOMBER OF PIECES HABDIfiD, HUMBEK OF BHP&OIBBS* SAUHIBS
AKD BSB3ISB8 1927 ~ 1926
(i!innoapol£*)
Kuaibor of bill*
reooivod and
oouxrtod

Offioors
Salaries

Btokbor of
Offioore

Amount

420
First Vfclf 192? #18o245o
2O«3260
7O5
Seocud ’ c l 192?
!\f
Total 1927

0 96o267o90OoOO
102 o9&10
450©00
j r a w

Monthly avorago

t 3,2U0S44

$ ie,301,616o00

First Half 1926
feoo&d laIf 1926
Total 1926

17^063,261
18f208»458
t

91^554x500oOO
>
.96f341»400«00
l
5nfiOB®o98n8Bf

’
onihly tiTor^go

| 209$9*309

# 62f<»02
825*02
$1V*5JT®W

0 16n607o991<>00

umber of
Bcgjloyoos
First ifclf 1927
Sooond m l f 1927
Total 1927

$

187o50

1*916©62
1.660o08

0??
,60

297*22

Total
Expense

Other
Expense

Hoathly average

t2,301o80
20245o64

Cl9,5T8o41
16667©73
•JWVSBTTK

6

878©94

§ 3,020.51

17,729.61
17(,340.88
^ &i{>$Vo,89
i)

'20163o22
2f524o53
t

£20,854.46
21.518.29

§

22ol4
20*21

$ 16,451of9
140
422o19
s "sfimm
§ 2,672.8*

19 ©04
17*29

Monthly average
First ICalf 1926
Sooond Half 1926
Toto.l 1926

Eoployoes
Salaries

*80
oSO

f

: 3,530o81

2,922©52

390©65

com
*umbor of ooiaa
‘
reoeired s a
ad
litmber of
oousted
Amount o
n
•irat rfclf 1927
6,528*758
:.;mOBd i&lf 1927 4*424,738
Total i m w M ¥ ? m
Monthly arorago

vlj623rl&5o60
l„8*2r
426.00

912r
790

$.1|>8S£,7£4.00
1,656.,8 11.0 0




$

E90r
734oC8

Other
M

l

Total
Expanse

1.20
ias

01,082.81
1,04*.1*

883,9*
1,297.74
'%n b i

$11,9 6.46
7
2.846.92
^ssor

178.47

loie
10.6

2esc
798„85

Fitfst Half 1926
6r579pS88
Sooond Talf 1926 4»4S3,5S8
Total 1926
Monthly ^rorago
n r ,759

S&ployeos
salaries

181o81

360.28

S #54.#9
892<49
ei7»oi

$ 930.20
1,187.91
$Tinr.n

0 168.96

i
!

§

51,888.19
2.080.40
itfmzs

176.81 &

330.47

60

1-1

CO 1IS38D

<0

CgSRMCY RSOSIPTS S30K AST? SHIP: !%$?$ TO regBR ;HD IOT- : 3?R B4FXS S? qr*HB
3
FiDgRAL gaSBCTl

72C3IPTS

J obs
t
*ember Bftnka
January
?abraary

April
ay
Juna
July
lu^ost
Septenbar
October
^ovnibtr
December
Total

19 2 7

Total 1 9 2 6
Total 1925
Total 1 9 2 U
Total 1923
Total 1 9 2 2
Total 1 9 2 1
Total 1 9 2 0




$

. 0 7 .1 5 1
1
12,^20 3 1
,^
i5 .O6 9 .2 6 2
15.^73.326
15.710.791
16 700,061
17,1*21,538
17.2QJ.931
>
16.072,797
l6.5tft.695
1 7 .U23 oss
18.ra.gqo
1 6

,

Q.t ?XE«M P0LIS AS3 ISTUSSIk BBMSQg

SHTFMgSTS

"r a
’o i
265,218
209,015
225,884
216,106

190.025
221,365
221.7S7
25^.331
275.798
366,727
392.500
SU6.170

^19^,920,928

t 3.185.U26

$186,U85,U81
178 ,
959,0 62
150.W5.955
1*7.591.375
113.325.000
132.7 9 0
8 .0 0
6fc.332.000

. . SU
170 9
237,271
2 U8 . 6 5 5
1 3 2 .6 1 0
1 3 1 .0 0 0

'2 4 9 , 0 0 0
5 2 3 .0 0 0

To
•f l b r foafci
fjf

To
gon-"amber Brnka
116.U7S
131.691
155.158
MO, 5 0 0
1U5.100
1S7,U»»0
2 0 V^O
2,

u . 6 5 3 .1 0 5
i3 .262.20 5
lU,5 5 0 . 1 7 0
1^.299.717
13.0Wi,815
i 5. 372.it3 15,1S2,'450
•15.^1.325
20.953.500
20 , 13 . 7?
6
3
15.876.675
19.196.966
fl8 9 ,2 5 5 .7 ^ 3

•isfe.703.3!
«
171,lUl.?73
i7 i.l6 6 .7 3 U
1 3 7 .S6 7 .
m
1 0 5 , 1 7 .0 0 0
1
8 3 . 9 6 .0 0 0
2
7 8 . 1 6 .0 0 0
6

Toral si-npriaars

TOTAL T O i i m

32 0
3 .8 0
557.5U0
393.611
afcl.722
176.789

i

2

,7 9 9 . 2 6 9
3 7 0 .2 3 0

,1 7 2 , 1 7 0
1,383.265
2.753.003
2

2,0U7,OT)O

1.0 0 0 0
2. ?
3>0 0
< ,0 0

0221

122L

JLSSi

$ 16.372.369 1
1 2 . 2 9 .3 5 6
6
15.295.1*6
15.6^9,^92
1 5 . 0 0 ,n6
9
1 6 . 2 1 .9 2 6
9
17.6 3. 2>
U 3!
17,*>3,2S5
16.3H8.595
16.951.U22
1 7 , 1 5 .5 5 2
8
1Q.080.060

15,551,t o
1 2 . 3 2 .lW
8
15.355.320
16.678,918
1 5 . 3 0 ,6 2 9
6
15.19S,5''S
lS.059.ai
1 6 ,117.1*5
16,393.93*
I6 .i3 2 .7 s0
1 5 , 8 6 ,- 9 6 5
1
17.6 0 S . 6 1 6

filSS.i0 6 .3 5 U

18 9

, 56
5

,^ 5

:
l-:5,o5S,!vih

17?.196.333

i5 O.S9 U.6 lO
lU7 .723.9 25
113.U56,000
133.'<5S.000
64,860.000

11.769.583
13,393.896
1U.705.32*
lU,UU0 , 2 1 7
13.1':.915
lf.35S.878
15,402,3^0
15,78s.125
’
'
21,511,0H0
2 1 , 006.988
16,118,397
19/S7S.75*
'i 2 .O5 6 . a 2
.9

.LS6
39.
10,687,177
, 9 0 ,0 7 4
3
1 U,7 6 0 , 7 2 0
15.291.u7
1U.Ua1.261
15;220,225
i5 . S7 . S
5
95
15.359.156
17,422,392
19.972.335
17,310.270
18.670.295
1 2

*187.073.578
*187,073,57*
173.313.^3
172 .
550 .0 03
lU0 .6 2 0 . U3
8
1 0 7 , 6 ^ ,0 0 0
1
9 9 , 1 6 .0 0 0
3
78,996,000

CJ
S
CO

:z m n u R s a r motoohto r thbral besots bofbs
/;^7
AmoimtB of Federal Beserve Sotos received from and returned to each other federal Beserve Bank for redemption or eredlt.
Received from
federal Rsserva
Bank of
Jn,
a*

Boston
¥ew York

22,*400

19 6 ,6 0 0

Philadelphia
Cleveland
$&flhs&nd

Atlanta
Ghicagp
St. loxdu
Kansas Olty

25,000
80,000
«,500
3$.S0O
.206,900
123,600

18,900
171.200
13,500
*5.5°0
16,000

31,000

9«.900
* 9,200
>

208,too
*5,*oc

Dallas

San Trsaoieca *98.200
Ibtal 3*c.

Js&

' s r

ML

Jmi
&m

JJ9
K*

16.700
163,200
15.000
57.000
10,500
*5.700
*».ooo

12,600
162,800
13.000
W.500
25.500

3*.7O0
150,100
18.000
37.500

57.JDO
177.600
3 1.^0
■3S$.*W

1 6

T

O

122,000
22.500
S3SL3BS.

6

,0

0

0

52.300
200.700

16,800
,2te,29g,

i » B

15.500
>18,000
13.500

65.000

773.500
>10,100
183.>K»
18,> 0
10
£3xi3Q5L

2,*56,too 1,939,200 1,820,>K)0 1,5*3,800 1,552,300 1,629,200

Shipped to
federal Reserve
Bank nf
Jan.
22,900
80.600
18,000

Total-

1,329,300




Mu.

JiKL

1,0
260
1.0
700
5,0
890
6,0
290
11,300
1*,600
Claraland
*3 0 0
,0
5,0
050
6,0
700
Blebmond
1,0
100
370
,0
810
,0
Atlanta
2,0
*20
1,0
900
1,0
830
Chios
7710 5**0 6510
7.0
5.0
2,0
St. Louie
2.0
720
1.0
5*0
2.0
680
Kansas City
1290
1,0
9.0
3*0 1560
1,0
Dallae
1.0
510
780
,0
990
,0
_ 3 uiS _
San rranel.ca^aUSSZ_ 1 8 2 _ ISSJBO

Boston
Sew Tork
SSPUdelphia

Shipped

21.000

12,000
22,000

J&59.

1,0
*10
7,0
160
13,700
5,0
550
910
,0
1,0
300

630.600

1.0
860
1720
0,0
9,* »

l6^.*00

2,0
520
8,0
320
19,200
*3 0 0
,0
810
,0
3,0
*20
6*60
0,0
2,0
260
9,0
820

fo.SOO
llg.M O

Jaaa.

2.0
530
1780
0,0
22,000
1200
0,0
1.0
290
*0 5 0
,0

900,700
29.M 0

1660
5,0
1,0
2*0

2**-«0

JtSz.

35.000
159.300
17.500
>
12,000
11.500

J&
Si
33.000

8wrt.
30,700

185,700

2 6 .50 0

159.>
100
18.500
*7,500
10.900
18,800

892.000

883.000

36.300
111,600
51.100

19.N00

«

21'3.600

162.900

10.500
‘ftt-OOO

20,000

52.500
11,000

18,500
828.500
is,900
jg

1,597.000 1,836,500 1,831,000

J/i
Bt
21 6 0 2 , 0
* ,0
720
9,0 1870
860 2.0
22.900
2,0
880
9,0 1070
*00 5,0
1,0
150 1,0
310
2.0
570 3,0
720
8 7 5 0 1,2 8 0 0
* .0
* .0
2,0
830 3,0
800
1180 2020
3,0
1,0
1J, 0
*0 1,0
530
2 8 0 0 2*».<P0
0.0

.Set

J2X,

IS,1 0 0
.TOO
20,900

198.500

13 9

5 1 ,0 0 0

15.500

16.500
■ S B

180,900
18,000
227.T00

■Sci
J ffj
E

*3.100
16.000
5*.000
*.500

25.800
856.000

51.20C

170.600

32.700
as.Tpo

1 .605,600 1,738,100

303.000
1.997.200
2JO.50O

9 .0 0 0

12.000
50*000

J&U

29.600
135.200
31.900
135.600
11.300

27.900
9*,100

265,300
v dm

S :S
78.300
7.900

.8 : 3
38.900
176.900
18,*00
2SI.700

82,*00

10.900
27.300
996,700

20,900
728.900

•S B
i5.*oo
srMSBL

090.300

2J99400
32 9 .6OO

1,91*.T00 Zl.*6*,200

20,100

21,000

S

i o . o I oo
t
o

-JteT.

JBssl

S

U6.100
10,800
JSjffiL

26.30 0

966,000 l,123,ino 1 ,106,600 1 ,
116,000 1 ,65*,300 1 ,905,9002,189,700 1.709,800 1,703,*00 1 ,
290.*00 1,63*.100

t t m s s s n goupQK rosig
(1'IFKEAPOLIS ONLY)
5his unit collects only government coupons and Federal Land Sank coupons
and bonds.

All other coupons are collected through the Collection Department.
During 1927 this unit collected 923,000 government coupons totaling

$9,335,000 as compared v'ith 932,000 coupons valued at *10,377,000 for 1926.

The

average number of coupons handled per day for 1927 was 1,771 and for 1926 was
1,886.

( i cost of h&ndliA?, per thousand durir.; 1927 was £2.92 compiled vith
De

£2.53 for 1926.

A portion of the increased cost of handlinr during 1927 is

attributable to the switching of this unit from the cash und custody division to
the collection division, neoetsitatix:~ the familiarising of different clerks with
the duties, a . lessening the output per day per operator t r ?orarily*
rd
en
Uhder a new plan of operatic*' to be placed in effect soon, the credits
und advices for coupons clipped from government securities held in our vaults will,
be written outside of this unit, v.hich should reduce the cost of handling per
thousand during 1928.
COl^EtSIVS

COUPONS EA3JDLED BY YEABS
Btamber of Coupons
---- 52j;TOr;
932,000
1,007,000
1,228,000
1,747,000
2,435,000
3,588,000
5,089,000
5,193,000
1,670,000
45,000

Year
IW f
1926
1925
1924
1923
1922
1921
1920
1919
1918
1917

Amount
S 9,3557TO>.
10,377,000*
10,463,000.
10,478,000*
11,374,000*
11,296,000.
14,347,000.
16,419,000.
14,356,000.
4,321,000.
137,000.

CCUXFARkTlTB

STAfl&5?HT SHCrriKC
OP COtJTOFS KAKDLED,
OT<3S3 OF 5KPL0SSES, f SA1ABIFS A * O W E EXFBl’
2D
Srs.
-------------------------------- m
.r T § H --------------------------------------(T£ix£ieapolis)
!teber of
Coupons
_ Handled
First half 1927
Second hd.lt 192?
(Total 1927
:^onthl;r average
First half 1926
Second half 1926
fotal 1926
Monthly average




Kumber
of
Employees

459,532
453,577
9SFJUV

1.56
1.93

465,322
467,150
m ; m
77,706

1.58
1*70

Other
Expanse

1,148.49
1,149*64
7*3*05

158.21
237.94

#1,306.70
1,387.58
1,65?.21*

t191.51

76,926

B , loyees
n:
Salaries

fotal
Expense

#33.01

|224.52

996.47
1,026.67

£167.26
153.82

1,163.73
1,180.49
^nr*ia

168.59

*28.76

/195.35

63

CUSTODIES FUNCTION
(Minneapolis Only)
The outstanding service now being given member banks and the one
most appreoiated at this time is furnished through our Custodies division*,
Our vault facilities afford a real relief to the banks as is evident by the
increased volume of seourities placed with us for safekeeping during the
past year.

This influx of seourities was hastened early in 1927 through the

decision by the Twin City banks to make a charge for safeguarding the
seourities of customers.
At the close of the year we were holding for our member banks for
various purposes $117,157,000 par value of securities.

One year ago the

amount so held was $75,558*000.
Better evidence of the increase in the volume of work handled is
a comparison of the pieces received and delivered in 1926 and 1927.

In the

past year 65,39T^pieoes were reoeived from outside sources and passed along
to the vault custodian or delivered to other departments of the Bank.

This

will indicate the big increase over 1926 when 19,663 pieces were handled.
Deliveries to banks and others aggregated 28f861 pieces.

In addition to the

outside receipts and deliveries, there were 11,291 pieces received from or
delivered to other departments within the^bQalcf Vhese items were for collec­
tion, sale or exchange on orders of the owning banks. Further heavy expansion
in our custodies service is looked for in 1928.
In addition to the very heavy increase in volume, all records vere
transcribed on the new multiple ticket and card plan during September and
Ootober.

This involved about

15,000 transactions and took a special force

approximately six weeks to install.

Expense of operating this function was

127,248.39 for the year and #11,014.48 more than the like expense of 1926.
Of the increase #7,830 was in salaries and #2,350 increase in cost of printing
and stationery and other supplies.

The average number of persons employed

on custodies was 9.95 in 1927 and 5.33 in 1926.
On October 31 the ner Custodies Proof Sheet vas established and
through this means a complete clearance of each day*s transactions is ob­
tained*

Each morning the changes of the previous day on the Custodies ledger

are verified by comparison with the duplicate records maintained in the
Auditing Department.




ACCOUNTING FUNCTION
In discussing the Accounting Function it may be well to note that
under the Federal Reserve Board Manual the units comprising this function
are general hooks,
member hank accounts, Federal Beserre Bank accounts,
transfer of funds, expenditures and planning.

Some other units are also

covered depending on the internal arrangements of the different; Federal Re­
serve Banks.

In every function of the hank there is important accounting

procedure and vhere neoessary, this Is explained in connection with the write­
up of that particular function.
Several changes have been made during the year in the general ac­
counting methods which provide a more effective check within each function
and also between functions.

For instance, the amounts which constitute the

control balance of the security collections and the coupons received for pay­
ments are furnished by departments other than those handling the securities
and coupons.

In the Collection Department the xaid and unpaid maturities of

each day must a?*ree with the control kept in another division of the depart­
ment.

The registered .nail division will furnish control figures for other

departments in addition to those already established by the Auditing Depart­
ment.

At the a&.e time a closer control will be made over the registered

mail division itself,
Transactions in any of the profit accounts are handled In a
different meaner by us than in most banks.

«hile the tickets covering all

* transactions are made in operating departments, these tickets are routed to
the general ledger through the audit sheet.

This prevents -my department

handling cash from controlling the disposition of earnings.

All adjustments

of accounting errors ^lso must be routed through the audit sheet, thus
establishing in one pi^ce a record of all such errors.
S o volume of entries pass r . through the general ledger i» 1927
te
i.,
amounted to 125,202 or 25,000 more entries than were handled in 192$.

This

Increase was largely the result of the i a t Cashier's checks necessary in
csy
making redemptions of Government securities.
Meeber bank ledgers also carried more entries d r i * the year,
uiH,
the total of 4?n,235 in 1927 exceed!: the 1926 number by approximately 5,000.
<
The'reduced volume of entries .receive! fro*, some departments




was

mors than

65

viis*t

increased credit* covering V-ond tranMotiom and coupon ool»

l«oti<...r

Sntries covering the tranmotions *«ith other Federal £*•

serve *ankft wore 153,992 and 7,801 lesa than in 1926,
During the year the question of eontisxiiinr the Functional Eeport
sade by all Federal H n s « m Benka «as fcroutfit up*

At an accounting oonfer-

once atten%1ed by the Controller, it was deoided to continue theee reporta
although *afty of the banks now hare a fairly veil established budget eye*
T^.. Functional report will still serve eome purpose in jsakinr: unit
cost comparisons with othor hanks*

0 C K M m r > 8 ST^TAMBlf
T& T - V M
(Minneapolis Only)

onaifx nuxxov
So. of Officers
First M O f 1927
Second Hfclf 1927
Total 1927

1*56
1,32

First Bklf 1926
Second Half 1926
fatal 1926

3*94
6*94

#5,876*29
4*836*96
{

Monthly average

QM7RAL BOOKS U W & l ?AE& iCCOPCTi
• M b e r oi
lUber of
Expense

850.78

f 5,417.86

4*40
# 3*93
•

9

Mcnthly average

5*27
5*19

•6,109*69
4*446*16
89,&4*84
*

892.60

#3,922*34
3*667*36
^T^RRF*5F
# 881.84

# 783*36

4U,flM3t

1.57
i*eo

34,686*50
4*713*67
K»5.W

6 *11
6*66

796*24

#4,041.28
8.797.82
t 888.24

F.DEHAI* HSS&K7B

Rjymxw
TttJK ACCOUNTS
^t^^ZTUSBS
Busier o^
Bw®>cr of
M b e r of
Bvployees
Expense Employees
txpense Employees
898*9#
Firat Balf 1927
Beoond Half 1927
.Total 1927

»*34

3*24

$

Monthly average
First Balf 1926
Second Balf 1926
Total 1926
Monthly average




54,039.00
4,104.88
litnor

S*8$
3*5£

2.48
2.89

#

676*70

$4,429*44
4*020*97
.# 704*20

#2 ,888*21
. 3*006*34

2.73
2«6t>

Bone

Bone

491*21

#2,960*59
3.015*78
iRjnisf
* 498*03

*09
Bone

#92*37
Bone
iKC3F
# 7,70

66

iiama,aaam.
Ga December 33.0 1927, the total reserves held amounted to $77,064,000,,
wuich was 65o5 p@r cant of the combined deposit and aote Xlability

This repre*

seated a s&rksd change from tbe reserves bald at the close of 1926,

One year ago

the reserve carried was greater by $160 0,000 and the percentage against da*
0Q
poalts and circulation was 76c
Tha reserve fluctuations wart somewhat greater la 1936 thaa during
tha past year,

The extremes of reserve for tha two ye&ra wara 83*3 per east

on March 240 1926 aad 580 per cant cm Vovenber 230 1927* Tor 1927 the hi^h
9
point of reserve was eu par ceat oa April 1 aad for 1926 tha loweat reserve
percentage was 60o3 on October 20.

During tha dosing months of each /ear

our earning assets required expansion and aa this was acre necessary in 193T
our reserves ware such lower than in the early months of the year.
Tor a number of year* practically 100 par cant of our oxpanaloa or
contraction in earning aaaata has "been immediately reflectad in tha amoral if
our gold holdings.

This la more evident than ever at this time due to tha

meagre borrowings of our member banks*

Out of total earning assets of

$440
7000
000 on December 31, 1927, we have received $34,600,000 through the
Investment Committee of Haw York.

Of tha remainder $7,568,000 represents oar

permanent investment account and $2o
126s
000 advances to member beaks.

Less

thaa $20o
0000
000 of our total earning assets on Deceaiber 31 were eligible as
security’for note issues e The fact that we have such a large proportioa of
paper set available as note security is not important at this tins but does
result In more frequent transactions between the Agent1 Gold Fuad aad that
!
of the Basko
There has been a gradual reduction la gsdd held by the Ageat since
the beginning of the yearc This amount should never go below 4O t of the FedU*
f
eral Reserve Hotes outstanding*

On December 31t the Agent^a Settlement Fund

was $33,000,000 or a decrease of $130
000.000 during 19270 Hie Bank*a Toad of

$16,831*000 was $3,600,000 leas thaa one year ago0
During the various months of the year the fluctuations la deposits
have been greater than in the Issues of Federal Easerve Botes0 M

the end of

1927 deposits were $57,O2Oo
OO0 la comparison with $63,5660
000 held oa Dec«oiber
3io 1926o The highest point ear deposits reached was $6&(7S90
?
000o m




i;ovember 15 and the lowest total was #42,607,000 on the last day of Hay.
After our circulation decreased #5,000,000 between January 1, 1927
and the end of February, there nat a further gradual deorease until the
amount outstanding reached 156,840,000 on August 31.

Through the fall months

a less than normal increase took place with the net amount outstanding
#61,225,000 onDecember 31, 1927.
DAILY AVERAGES MEMBER BANK BALANCES BT MONTHS 1927
•000 omitted.
1927

1926,
150,377 M
49,114
60,139
48,824
47,645
48,377
49.019
48,229
50,870
53*850
56,198
55,064
m

©
1

Daily

!

June
July
August
September
October
November
Deeember

for 1 9 2 7
tt ■
19 2 6
’ 19 2 5
•
*

tt

n

tt

»t

c

ti

tt

n

tt

n

ti

it

n'

tt

tt

tt

tt

n

tt

tt

$63,516 X
52,285
52,272
51,171
50,294
50,588
49,790
47,980
48,654
49,915
51,195
50,500

January
February
March
April
May
June
July
August
September
October
November
December

!
e

January
February
Karch
April

i»

I
S

*

o

o

.

.

.

1 5 0 ,6 5 0

.

o

.

.

•

o

5 0 ,6 7 0

.

.

o

.

.

19 2 4

o

o

.

. .

19 2 2

.

.

.

.

19 2 1

. . .

.

.

.

.

5 3 ,0 7 6

o

4 9 ,6 0 0

.

4 1 ,5 3 5

.
.

X

4 4 ,4 5 1

LIMBER BANK RESERVE BALANCES BY STATES
AT CLOSE OF BUSINESS DECEMBER 51. 1927.
000 omitted.
1926

1927
Miohigan
Minnesota
Montana
Poo Dakota
South Dakota
Viseonsin

$ 2,859
34,337
7,062
4,292
3,917
2,257
rsv f m

# 2,815
31,660
6,307
4,173
3,535
2,267
r w f m

1926
# 2,951 X
32,469
6,371
4,807
3,956
2.362

DEFICIENT BBSSEyg PENALTIES
Minneapolis (192?)
Total Penalties for 1927 4 9,723,25
No. of Banks Penalised
131
Highest Penalty Bate

Helena (1927) Combined (1927) Combined (1926)
t 3,681.41
51

£13,4C4„64
182

£16,473.12
218
6$

Highest Point I'om(llov.18)
ber Bank Reserves
?^54,266,784062

(NoVol5)
«7,614,228* 94

( k o v.1 5 )
(Jan.12- 1926)
<61,758,746,24 $56,686,1 3 ,5$
3<

Lowest Point Heirber Bank Reservos

(Aprc25)
$4,971,754*61

(r*y 31)
(June 3)
£42,606,590*29 .$45,505,455.89




'Hay 31)
537,334,347,20

68

gPA.TBM
.sm o?

xmsrmsn

held

motors. 31.

Maturity

Z&t*rM«

1932-1947
1923-1938
19301932
1944-1954
1946
194?
1961
1S36-1938

?ir»t U U r t y Loan 4fc Xoada
Tourth ttb«rtjr Loan 4 & Bond*
freftsvpy Votes Series A
0 * So frtan»7 Sends
<
Oo So Coarereion Beals
Uo So Conversion Bonds
Vo S t Bftaasa Sonde
)
X o S* Panama Bonds
S

1927.
Ament

4| g
4
3$
4 .
5
3
'3
2

$ 786,200.
3,431,300.
30
O580
75O.
1650900«
30200o
1110600o
500o
260,

Participation la federal Beserre Sjrstaa
Special iavestoe&t aeooo&t*
Uo So Securities----------- ----------------

1603428
000o

foul T . S. SamrittM - ------.
J
----------------------- $ 23,899,710
S.dLwal latum&iat* Qr«dit Bash X«b«&tw«*
’
Federal Xatsraedfats Cr«dit 3aok OE*ha0 Sttr3 H T.va 3-16-1SS8

*

600,000.

OCIO E0J3E&S 0? 1H3 BASE AHS -•3BRAL
•
?3SJEVJE AOSKT A5 7&3SS OP KJSIKSSS PBCJSOER
a.:MP.j».ocea>go are b m p b i * n . 1936.
B.ld t r Sack
e
12SZ
Oold
§014
Sold
Cold

I 3,5150S?5 o
1,536,500
139830,518„
■JUBBiMLt

Coin
Certificates
Settlement ?&nA
Redemption *an&
.
*
s

fotal C-old Said by 3aafc ------

I2ai
f 3#223,345o
;
3,650,500.
20,483,291.
-SJOMk830,

^39
30'3o84

S290
4290966o

geld by
m i
G-eld
Sold
Sold
Cold




i 3455,000
:
10,712,000,,
330
OOOvOOO.

Cola
Certificates
witfc :• r e Board
» Bedecr.tioa 'Sxa&

Total 0*11 *ith to 7U Agent

US*

- -

CcsS^ae* >©11 folding* - - - —

$ 3,465,000.
10.063.000,
46.000.000.
..ItWJWU

■*49,?’
i8,856.

'50,338^850,

$73 074,289.,

*''83,988,856,,

69

TRANSFER & CODING UHCT
{ Minneapolis Only)
The total number of transfer8 xa&de during 1927 decreased in number
from 55,734 for 1926 to 53,380 but increased in amount from $2,457,249,000*
to $2,590,440,000.

The wire and mail transfers for 1927 other than for the

5% Redemption Fund of National Banks, were 40,295 for $2,580,804,000. as com­
pared to 39,513 transfers for #2,444,516,000. for 1926.

The number of trans­

fers for the d > fund of National Banks was 13,086 for 1927 totaling $9,636,000.
f
as compared to 16,221 transfers amounting to $12,734,000. for 1926.

The total

expense of the Transfer and Coding Units for 1927 was $9,025 72 as compared
to $9,220o50 for 1926.
Tfire transfers handled during 1927 were larger in both number and
amount than in 1926, this year1s totals being 27,739 wire transfers for a
total of $2,109,225,000o as compared to 27,013 wire transfers aggregating
$1,990,869,000o for 1926.

Incoming wire transfers for the account of member

banks were the largest in amount in the history of the bank although not in
number.

A comparison of the wire transfers handled since 1920 is given below:
OUTGOING m m TRANSFERS
Amount
Number
(00b omitted)
11,115 .
670,649
10,174
609,695
10,517
696,093
11,943
700,576
10,062
546,133
550,036
9,850
9,249
398,876
8,587
550,429

Year
1927
1926
1926
1924
1923
1922
1921
1920

INCOMING WIRE TRANSFERS
Amount
Number
(000 omitted)
1,436,676
16,624
16,839
1,381,174
14,926
1,376,894
14*561
1,344,636
14,667
1,079,866
13,166
1,002,868
10,395
861,463
813,869
7,543

The arerage number of employees in the Transfer Unit was 2.98 for
1927 as compared to 2o80 for 1926.

The total expense of the Transfer Unit

was $7,199.86 for 1927 as compared to $7,010.79 for 1926.
The number of messages coded and decoded other than transfers during
1927 were 17,896 as compared to 17,849, an increase of 47 messages for the year.
The average number of employees in the Coding Unit during 1927 w«s 1.34 as com­
pared to lo87 employees for 1926.

The total cost of the Coding Unit for 1927

was $1 ,825c86 as compared to $2,209.71 for 1926.
Messages for our Helena Branch are forwarded over the commercial wires
as we do not have a private wire to the Branch.

The oost of operating a direct

line to Helena would not be justified by the volume of messages.

Telegrams

from other Federal Reserve Banks for the Branch c r forwarded to us and relayed
ue
to Helena except in the case of San firancisoo and its branches, which messages
are relayed to Helena by the Spokane Branch of the Federal Reserve Bank of San
Franciscoo
 the expense


Through ooding in this office of messages to be relayed to Helena,
is materially reduced.

COMPARATIVE STATEMENT SHOEING NUMBER AND AMOUNT OF TRANSFERS MADE,
NUMBER OF EMPLOYEES, SALARIESAND OTHER EXPENSES
Only) .
Number of transfers
made other than for
8£ Redemption Fund
of National Banks.
(Wire and Mail)
First Balf 1927
Seoond Balf 1927
Total 1927

19,243
21*062
46,^95

Monthly average

3,368

First Balf 1926
Seoond Balf 1926
Total 1926
Monthly average

#1,161,361,000*00
1,419,443,OOOo00
$£,6$0 ,d 64, 660,06

.

Amount
<4.841,150.00
4.794.780.00
*9,638, stid.66

216,067,000.00

1,090

# 802,994.16

19,176
20,338
T 9, 6i 3

$1,161,236,672.00
1.283,279.760*00

8,202
8,019
■flClff

$6,582,480.00
6.151.255.00
m z s

3,292

$ 203,709,610c 00

1,361

* 1,061,140.41

$

Monthly average

Total
Expense

$1,734.92
l,965o96

*1,621. 7Q
1.877.28
ITS7SGSM

#5,356,62
5.848.24
iTllW.88

* 291.59

*

$1,639,43
1,812044
P T ^ lT W

11,746.26
1.813.67
w f m M

$3,384.68
3.626.11
*77616'.TC

$

2.89
3< 0
,0

Other
Expense

# 308,41

2*82
3ol5

Monthly average
First Balf 1926
Seoond Balf 1926
total 1926

Amount

6,666
6,619
njjjw

Number of
Employees
First Balf 1927
Seoond Balf 1927
Total 1927

Humber of transfers
for
Redemption Fund
. of National Banks*

* 296.57

I

Baployees
Salaries

237.66

699.99

684.23

CODING UNIT
Number of
Boployees
lo54
1,16

Employees
Salaries

First Balf 1926
Seoond Half 1926
Total 1926
Monthly average




1,72
1*62

$ 4,43
i i.i'i

5

Monthly average

fl,069c89
~X 821*43

First Balf 1927
Seoond Half 1927

Total
Expense

Other
Expense

f

161o78

,37

€1,074.02
751,84
t 162.16

$1,162.97
1,042,66
P,1SS ,€3

f:8.B4
7.24
*rCo¥

*1,169.81
1,049,90
$2,209M

$

■ 1.17
I

(

182,97

184,14

71

TELEggAPsr r m t
(KZHI1EAP0LIS OKWt)
tho number of messages handled over tho leased wire during 1927 was
42o820* am Increase of 30242 messages over the 1926 total of 39 D283 telegrams o
This increase occurred la spite of a deorease of 22 messages sent, an increase
of 8*264 messages being received o
The number of fiords sent over the leased \rire la 1927 was 4260228 at
•V

f.

oewpared to 418 ©477 for 1928 . an increase of 9r
751 wordso
The total ,
oost of the Telegraph unit for 1927 was §150
051o89 as compared
to |170298o79 for 1926© Tho average nwtber of operators for 1927 m s 1©69 as oost*
pared to 1«34 for 1926P and operators salaries $2^6020 for 1927 and §2<,331ol9 for
96
1926 o Oar share of the leased wire rental for 1927 was §7 D639©87 as compared to
$8^604o02 for 1926 o The oost of ossnorolal messages absorbed by us for 1927 was
$4 <>678©24 as compared to 16*3470 for 1926a a deorease of $l,669o22<, Tho expense
46
for printing and stationery Increased slightly for 1927D being #180*62 for 1927
and $116*12 for 1926*
The major part of the deorease in the cost of cosBierci&l messages absorbed
by ns during 1927 as compared to 1926 is attributable to the change made July 1; 1926 $
la which we oeased absorbing the oost of telegrams la regard to transit liens sent or
received over the ooamieroi&l rlres«

The oost of telegrams advising non-payment of

items 1500 and over is nov reoovered from our endorsers*

o m x m o m of leased ^

----------ISSr a y yg----------------

Telegrams Seat
Mtti
oti

1927

me

January
February
Kardi
April
May
JUBS
July
August
September
October
November
Deoemtber

1362
1177
1559
1206
1406
1402
1328
137f
:
1516
1529
1552
1548

1410
1182
1474
1£95
1301
1486
1322
1439
1533
1574
1S09




iesz

1925
1382
1163
1454
1248
1338
1532
1486
1319
1485
172/
1431
1638

"TR58B‘ ~Tf5W TfSSS

Telegrams Reooivpd

«aasieMMMaMMissi«ifSli

1927

1926

1925

1926
1719
2423
1970
2107
2189
£084
2214
2188
2316
ai89
£194

1697
1582
1992
1849
1758
1881
1834
1814
1880
1968
1924
.
2026

1588
1372
1690
1573
1705
1795
1759
1667
1794
1946
1648
2074
n m r

~&I8F

72

ffON-CASS COLLECTION FPHCTIOK
(kbineapolls Only)
The volume of collections handled during 1927 deoreaaed to 210,611
from last year's total of 300,653.

This decrease in volume occurred In spite

of a large increase in the number of security collections handled, created
through the increase in the securities held by us for safekeeping for account
of menJber banks0 In 1927 the dollar value of collections handled *as #112,998,000
with |189,880,000 the value of oollections bandied in 1926o The handling ef se­
curities and coupons for collection caused considerably more labor and expense
so that although the total of items handled was 56a000 lets than in 1926 cur es­
pouse of #25,264*38 was $238 „34 greater than in 1926.
For 1923 no segregation of security collections had been made from
the normal city and country collections but during 1927 it was decided tc main­
tain separate eontrol aocounts for the three classes of collections* 111 securi­
ties and coupons turned over to the Collection Department are placed in the con­
trol figures by other departments so that a satisfactory oheok is now provided*
Security collections are mostly on points outside of Minneapolis but
even allowing for these collections, classified separately for a greater part
of the year, there m s a marked falling off in the number of city and country
items handled in comparison with the previous year*
In February, 1927 we adopted a policy ef collecting all city items,
other than grain drafts, through the local banks* This naturally subjected the
collections to an exchange charge and the volume fell off immediately* FIT#
months later we had to abandon this policy and all d t y items are now handled
as formerly» City items handled in reoent months are approximately the same in
volume as one year ago* Due to the fact that a large proportion of the city
items are on grain fiftns and are promptly paid, our cost per item is low*

The

cost per item for handling city collections in 1927 was 6*0 cents* The cest of
handling similar items in 1926 was 7*8 cents. Our per item costs for handling
city items have been consistently lower than the costs of any other Federal Re­
serve Bank*

The reduction in volume of country items resulted in an increase

in the per item costs from 10*6 cents in 1926 to 12*6 cents in 1927*
collection items oost 13«26 cents per item*

Security

Sane of the increased expense must

be attributed to the revising of the collection methods and with operations going
smoothly in 1928, a reduction in the per itea expense is looked foro




73

COLLECTION DEPARTMENT
COMPARATIVE STAT&iENT SHOEING NUMBER OP NON-CASH COLLECTIONS
HANDLED, NUMBER OF EMPLOYEES, SALARIES AND OTHER EXPENSES.
-------------------- (iftraeapblls Snly)--------------Total No* No* of Officer* No* of Employees Other
Total
Collections Offl- Salaries Employ- Salaries
Expense
Expense
Bandied eers
ees
_____________________
o25
©25

First Half 1927 103,600
Seoond Half 1927 141,711
TOTAL
245,f l
el
Monthly Are.1927

17047 | 9,573o95 $1,876,64
17e01 10,766.71
2,045.85
&,&Z4.£§
20,559.66

$ll,952o79
13,311,66

1,694.97

327.06

2,105,36

10,093,68
9,627*46

2,022.41
2,182,44
4,2M»d5

12,566*09
12.469.92
£l,d£4,ol

1,660.10

360.40

2,085.50

63o33

gO,459
,26
o25

136,022
First Half 1926
Sooond Half 1926 164,611
TOTAL
~ 36(5,£1$
Monthly Are, 1926

$ 500o
500o
l#o600

25,053

460.00
450.00
9ddod0

20,32
17,77

75,00

COMPARISON OF NUMBER OP ITBUS RECEIVED FOR COLLECTION
1927 - 1926
(Minneapolis Only)
City Collections
1927
Jan,
fob*
Mar.
April
May
June
July
August
Sept.
Oct*
lor.
Dec.

Country Collections

Security Collections

1927

1926

16,493
14,080
14,925
11,163
9,579
11,988
11,861
12a737
17,737
20,693
16,591
14,889

11,812
7*907
8,492
4,466
4,347
6,767
6,611
8,923
17,665
20,967
16,273
12,183

4926

9,254
7,907
6,415
6,964
6,685
6,066
6,764
5,780
5,829
8,131
6,363
6,374

8,991
7,839
10,335
10,118
10,722
10*789
12,435
10,650
|10,768
11,970
11,855
12,725

5,468
2,418
2,626
5,405
2,910
5,905
4,022
2,956
2*798
3,531
3,991
4,680

T9,600 123,097

40,708

Total 126,303 171,736

1927

1926
Sea note

Total Collections
1927

1926

24,654
18,252
17,655
15,825
12,940
16,756
16,587
17,659
26,192
32,619
26,617
23,237

24,484
21,919
26,260
21,281
20,501
22,777
24,096
25,287
28,606
32,663
28,446
27,614

245,511 300,635

Note* Security oollootions were inoluded in city and country collection figures
for the year 1926*
HELSIU BEAI-CK
City Collections

Country Collections

Total Collections

1927
January
February
March
April
May
June
July
August
September
October
Bovenber
December
Total

1926

1927

1926

1927

1926

190
181
158
158
150
162
245
221
204
272
233
246

180
134
166
118
152
16S
174
269
160
174
192
m

1*749
1,062
1,118
1,145
1,002
1,220
1,200
1,034
1,049
1,554
1,438
* 1,592

2,146
1,282
1,326
1,179
1,220
1,363
1*478
1,169
1,203
1,418
1*469
1.581

1,939
1,263
1*276
1,303
1*212
1,382
1,445
1,256
1,253
10826
1,671
1,838

2,326
1,416
1,492
1,297
1,372
1,531
1,652
1,338
1,563
1,592
1,661
I.™

1,999

15,243

16,834

17,663

18,835

2,420




74

CHECK COILECTIOH FOTCTXO®
(MINNEAPOLIS ONIff)
There was a decrease of items handled in this funotion of
1,191,781 items for the year 1927 as compared with the 1926 total of
23,108,204, the 1927 total being 21,916,423 it«ns«

A comparison of the

items handled for 1927 and 1926 is given below:
Items Handled On

1927

1926

Amount of
Peor«fci«

Twin City Banks (Clearings)
3,852,475* 3,780,889*
Member & Non-Member Banks
(This District)
16,176,997 17,279,728 1,102,731
Other Federal Reserve Districts
1,118,880 1,224,399
105,519
Direot to Banks Other F.R* Distriots
37,158
44,130
6,972
Helena,Montana
11,924
11,928
4
Treasurer of U.S.
718,989
767,130
48.141
total.
a.aioa tt.mfm r ; m , m
♦Items drawn on Minneapolis and St« Paul Banks collectible
through clearings increased 71,586 during 1927 over the 1926 total, all
other classes of items deoreased as indicated above*
The average number of transit letters received daily during
1927 was 1,527 as compared to 1,454 for 1926*

The average number of out­

going transit letters for 1927 was 1,588 daily as compared to 1,800 for
1926o She number of transit letters sent daily has deoreased during the
last fair years through consolidations of banks, withdrawals of banks from
the list of banks upon whom we handle checks, and through the dosing of
banks in this district.
Improved transit conditions are reflected in the reduction of the
number of items returned daily on account of non-payment or because we are
unable, to handle them*

The average number of items handled dally during

1927 by the Return Item Unit was 1308 in comparison with 1451 for 19260
The decrease in itesas handled is attributable in part to the de­
crease in the number of banks on our list of banks upon idiom we handle
c*
items for collection. This fact is borne out by the inrease rather than
decrease in our clearings, there being no withdrawals from our list within
the Twin Cities*




75

CHECK COLLECTION FUNCTION (MIIjKEA£Q3*IS) Cont<do
The daily average number of Items handled per person la. the
Transit Department for the last several years is &iven below, *?hioh table
indicates the increased efficiency of the department as compared to the
last few years.
Year

Average number of items per person daily

1927
1926
1926
1924
1923
1922
1921

Average Ho. Employees

1,064
993
958
856
736
674
539

77
87
96
109
123
126
158

The night foree of the Transit Department was discontinued January’
1, 1928, and a reduction of the staff of this function is under considera­
tion which should Increase the number of items handled per person during
1928.
The average number of employees in the Transit Department during
1927 was 77 as compared to 87 for 1926.

Cince January 1, 1926, the staff

of this department has been reduoed from 94 to 72, the present number.
The total expense of this function decreased $9,875.66 from the
total expense of 1926, with a decrease in items handled of 1,191,781 compared with that year*

The decrease in total expense for 1926 as compared

to 1926 was 16,525.30 with a decrease of 1,399,301 items.

The total ex­

pense of this function for 1927 was #107,741.29 with 21,916,000 items
hardled and for 1926 was #117,616.95 with 23,108,000 items handled.
The cost of handling the various classes of items during 1927 as
oompared to the average oost for the Federal Reserve System, as taken from
the latest available figures *a* given below:
Olass of Items

Tfait

Clearing oheoks
government Warrants
Country Checks (Outgoing)
Return Itsms

100
100
100
Per

P.R. Bank Mpls.

oheoks
warrants
oheoks
item

18.2
40.1
39.4
1.5

cents
cents
oents
oents

F.R. System
37.7
41»8
42.2
108

cents
cents
cents
oents

The comparative number of Items handled per person for the various
classes of items during 1927 as compared to the average for the Federal Re­
serve Systmn as taken from the latest available figures are listed below:
Class of Items

F.R. Bank. Minneapolis
---- t i m —
Government Warrants
1,378
Country Checks (Outgoing)
1,169
Return Items
384

mgE^m
m<xu




F.H. System
— rSm—
1,120
974
295

76

COMPARATIVE STATEMENT SHOEING VOLOME OP ’
;ORK
m m m or mpiatsbb and otb** expanses
CHECK COLMSCTION DEPARTMENT
(Minneapolis Only)

So. of City
Chaoke handled

No, of
Government
cheoks paid

No* of Country
oheoks received

1*810*000
1*975,000
3*785*000

353.000
365.000
718.000

8,488,000
8*858,000
17,546,000

194*000
201,000
395,000

315*417

59,833

1,445,500

32,917

Flrat Half 1928 1*877,000
Saoond Half 1926 l^OjOOO
3,717,000
Total 1926

391.000
377.000
768.000

9,282*000
9.277.000
18*559*000

207.000
250.000
437*000

309*750

64,000

1*546*583

36*416

Plrat Half 1927
Second Balt 1927
Total 1927
Monthly wrarag*

Monthly average

Number of
Offloers
first Half 1927

.65

“

•“

t K ' i g r

Monthly average
first Half 1926
fleooad fialf 1926
Total 1926
Monthly arerage

Offiosrs
.Salaries
#1*500.01

Number of
Employees

&*ployees Other
Salaries
Expense

67.79 $42*571.44 #11*588.11

Total
Expense
#56*259.56

• * » «

#216*67
*65
*65

Ho* of ratora
item cheeks
handled

#1*170.00
1.170*00
#2*540*00

#6*840*08 #1*921*69

#8*895.11

75*90 #45*508*82 #15*794.70 #60*273.52
70*05 42.945*98 13.229.45 57.343*43
#88*262*80 #27*024*15 #117*616.95

# 195.00

#7*354.40 #2*252.01

#9*801*41

CHECK COLLECTION fPHCTION
(HELENA BFANCH)
The maker of iteas handled through this funotion at our Helena Branoh in­
creased slightly during the year as oompared to 1926* while the volume handled at
the Btad Office shoired a marked deorease* The number of items and amounts handled
during 1927 and 1926 at the Branoh are compared below:
Its—

ftWtt on

lilesa ( Clearings )
(9Mt Qffioe Orders)
Nrs®oJ^ ^
Voottta Banka (Ontalda of Balma)
I N * Oftie* dstriot
dttM* r. t. Dlatriata
tffMWWW of 0» 8 .

Number

1927
Amount

205*910 #106*389*000*
12*446
607*000*
12,87* 12,769,000.
1,828,884 140,266,000.
20,128 28,406,000.
82,148 81,699,000.
181,688 18.682.000.
2,298,870 #888,847,000.

1926
Number
Amount
218*369 #102*804*000*
12*751
591*000*
12,219 10,918,000.
1,671,814 128,827,000.
26,260 24,780,000.
88,820 41,619,000.
184.007
18,197.000.
2,168,020 #824,748,000.

1km imb *r of r*turn 1«mm handlad daring 1927 « m 83,910 amountinjto
#2,182,880.40 m ooaparad to 88,988 ltaa* totaling #2,282,268.89 for 1928.



77

OD

TWIt c m CUSARW08 THROUGH FEDERAL RE8KRVX BANK

DIRECT SEMDIBOS TO OTHER RE8ERVE BANKS
BY OIR MEMBER BANKS 1927 AID 1926.

Of MWHKAPOLIS FOR 1927 AID 1926.

Month
Jan*
M.
Mar.
iBr
ia

8spt<
Osfc*

Total
At . by
Months




Ait. of ItflU
on St*Paul Bks*

146*161*077*44
121,727,070*59
161,9X6,060.99
141,296,260*63
140,292,064*95
168,909,490*45
146,494,686.56
166,690,141.10
168,466,671.81
206,784*701.46
198.49T.740.60
166,796*276*80

77,609,150.16
64,261,124.71
80,840,409.02
76.758.315.64
69,557,422.91
78,922,546.11
74.405.844.65
74,765,408.15
78,486,001.06
94,251,946.59
91,616 >966.42
86,971,609.58

mzsoscir

Grand Total
1926
241,806,625*46
205,680,431*28
266,906,668*45
259,159,002.62
227,709,690.02
206,044,b43.74
261,096,105.08
229.671.815.67
247,756,792*07
276,122,241*25
264.802.526.67
267,402,667.46
;,949,036,59fco66

2,862,246,570.51

1,916,188,848.86
169.S98.6M.0r

Grand Total
1927
225,670,207.69
186,978,196.10
252.766.490.01
217.056.664.17
209,629.487.64
257.851.856.66
220,898,227.89
280,645,649.23
261,950,672.87
502.966.647.66
286.114.708.02
265.769.886.18

Ast. of Items
on Mpls+Banks

78,921,785.46

2SS,Mfc,44T.62 246,765,049.85

Daily Average Aist* Held
Over
Clearings
1927
1926
241,700.09
196,476.56
194,990.72
213,261.98
201,968*48
212,366*99
226,890.65
276,278.47
274,066.40
276,710*66
297,905.54
602,117.96

195,919*15
176,250*28
181,896*66
220,344*16
230,244*06
232,148*16
234,830.02
263,010*82
192,946*27
220,268.97
260,181.62
439,098.76

6,112^720.18
168.5S5.86 2W.426.74

Humber of Items
1927
1926
123,026
107,076
125,122
113,853
112,130
106,876
116,486
121,162
115,381
127,724
119,667
127,950

134,191
121,183
148,311
142,243
136,269
146,460
142*351
183>347
127,921
127,265
126,010
136,466
73Z27<

1,411,312
117.609 136.167

Amount
1927

1926

11,562,661*30 13,593,914*28
9*901,768.26 11,470,137.27
12,745,466.55 16,144,60*1.0?
12,269,063.41 14,791,068.04‘
10,957,320*60 13,868,OOb.55
11,576,031.09 14,741,5C0ol6
15,250,949.26 14,^74,087*10
12*708,657*41 13,22T.996.81
11,446,564*26 13,080,502*20
12,711,949*17 13,272.286*03
12,270,660.29 12,922,866<>94
12*528,271.96 12,661.732.66
163,046,751* 33
145,266,923.25
11,9S8,910„27

13,687,229,82

05
3>
BT mUTBS

COMPABATX712 FIGURES FOR TRANSIT DBPARTMEBT

Dally Average Huniber
of Transit Letters

worn

Daily Avareg* Humber Bally Average Humber
of Return Items
ot Transit Letters
fr»nt
„
..IWBMt
192?
12^
2? I
123

1927

January
February
March
April
Hay
Jana
July
August
September
October
Hovember
December

1926

i**o

1^25

] 6
f

1920

1*20
1*21
1583
1590
1*38
1555

lta
15»

3

1883

m

i*m
1* *
3
1376
1401
Ikll
1501

27

33
1585
1587
1

15 9 1

1906

1855
1855
1829
1002

1527

1577
1981
1570
1570
1560
ifrQ

Average by Months

1527

1588

MOITH

Daily Average Clear*- Sally Average Clears
Ing Items Returned
im& Items tftaseat
UmwiKl . ..
1926
1927
19 2 7

January
February
March
April
May
June
July
Aogftst
September
October
Voveafcer
December
Average by Heaths




15 6 1
16 6 6

s s

52
%

52
5°

P
*8
*8

^7
50
§8
W
W
54

U2
30
*?
3*
31

52
51

IT©

1739

70,3**

132 8

72.93*

12 2 9

7 2 ,1 6 6

129 2

J2.3p

12 6 0

65.169

13Q5

S

1256

1298

7 2 .3 1 5

1800

130

s

1927

1*5 1

2k

1926

71.002
67. W
0

73.816
77.*23

16
29

19

30
*2
36
3**
27
23
27

21

2
k
2
5

26
26

fa
i

to
if
Mc

Ik

*£

*9

3?

32

3X

23

*8 67

5368
5508

*560

5%

10 27

5690

1<&2

*9 2 1

!2g
1*2 6
H$19

1*87

|H 3
>5
*9 12

5* m
STio
5^75
5129

5117

85.305
80.&8

*982
*920

5,895
5*35
5§a

72.530

76.833

*689

5375

1927
306
310
29^
290
312

Daily AVo HOo Drafts
Received in Other

952

985

10S6

110 6

25

27

10(fe

10*6
1028

1156

11S8
10 6

*

95*

Ul<
1m
<
m

993

Dally Average Hou&~

Star, fs rtu rttftt tfift ■fflfcLJtesfcp —
IgEJ3LJtolfiZSft!
1926
1926
1927
1926
1?27
306

3U
6
329
313
316
319
316

3H
6

3%

3(*

3I&

328

3<U

272

\oo

291

221

291

309

310

338

TT

289
278
285
282

969
992

lOfil
1119

292
300
296

23
8

906

979
971

81
82
80
81
78
79
77
$
76
75
T5
12.

295

8A

1026

10**

m

IT

22
21

27

52

7 6 .2 1 6

Dally Average Oat af Dally Av. Ho. Banks
Town Items Missent Remitting In Other

£

w
3*

77.676
79.17*
78.3*3
79.835
7H.706

8 O. 3 0 5
76.936

m i

P
*0
*9
5.
2

5
1

.70 0

77.996

27
5?
2**

&

. W

65.339

117 1

1686
Ifeg

?6
40
29
33

Daily Average All Dally At .Trans.Items Dally Average Somber
Other Items Sent Sent Direct hy Oar
c f Items Per Person
d
JWwfrfT Bfttfct
19261927
1927
192&
n r
1322

1383

172 6

25
25
31
25

MIHNHAPGLIS OHLT

303
317
319
317
318

322

31^

310

333
351
3*&
3*14
306
326

93
91
90
88
89
90

88
85

80
80
a
8T

o

*AWt o f mgnMKMS

IXDEBUL

o

nmm w m m fnr
Ar

TO o m EC40U H U M I
^

O

f

, 3

*
m

. «

1 9 .M . 1U .29

* 9

u

r

.

8

J

f

3

r

4
M

t

t

»

.

S

M

m

K

o

l .

^

f

9

r

9

3

?

.

X

a.HM,m.T2

i.*5#.T5T 77,*«,i*9.to
1.338.55 73.7&,T0e.75
73.T39.U2.65

S

.

9 9

»

l.m.fe*

T

2

0

•

3

®

E

‘

2

S

’

2

*

»

7

.

O

?

»

3

w

» >

8

* «

«

|

3 9

B »

8

O

L sol

•rtW

n

j «

a

i »

M

8

.

i

a

M

n

-

s

. o

.

2

1 , 9

l i ^
o

B

.

9 7

y

9

m

W

7

6

l R

.

9 9 9

i

.2
*

7
^

. o

a

B

. S

S

l . *

l

t95T.H6.895.zr

.

U

M

. f

o

z

. i

T

z

1 .

u

3

.6

o

3.17*

1 9 5

.

3.1*2,290.73

2 9 ^

. 1 5

4

2 9 0

. M

.

1

. «

5

6 3 .7 6

M

t

»

?: ?
§

, 2

*

1

. 0

1 6

.0

2

3T45i
♦255.796.7H».23

t C
W

if-!

. n

»

6.660.502.02
5,663.236.53

3

190.035.35
235.
237,®
228.6fc.82

3

2,106
2.859

21.38S.1

. M

1 9

5

1

o

K
i

.2

254 , 2 6 .4 5
7

‘
».3T3,lft.»
3,M3.0*.Q|

8 .9 9 0

81,1

o

1 6 , 7 6 .9 9 7
1

3

*

93.8*10

1 .0 3 9

| 1 C7.985. 8SI.23

$ 79.*18,074,,60

M a i fetal i t M ................
U

3

a

, m

0 9 6

R

7 ,«0 ,U 5 .Q

7.5^,307.08
6.582.760.03
7,898,160.7>

. g

M

2

.7

.6

M

3

0

,810

™ « l*
< M
7 w
« (W

»

s

9

.

3

M

. W

1

.0

2

*

11.92%

7 1 8

.

9

®

|89,ote.«g.2j

♦3,129,418,66

|W.8a5,3fil.95

fc.91«.Hfe.53
7.26*,03*.51
7.W 9.W .92

r

STjM b

f l m

, 2

, 1 6

g

w

ptM5A0J.J1k.T0
M

3

z

2

j* i
***t®j i®72

3,*5*.*T5

0
*

.> I
. *

0

19(i90l,399.si
s

2

8

, o
e

. f i e

, 7 8

a

*

5 6

M

. m

21,653,608.85 3.»0

1(7,0 1 ,211.2* l . J ? M ® n.«e.9*».95

gtaio

l

-.

fBDUtfQUS py

f

312.3*1

M

-

o

f

t

t

a

l




M

l

............................................................^ 1 3

21,916,1153
. 3

6

7

. 7

1 3

. 9

9

5

.1 0

* 21,316,392.85

3.097

I 3.902,nH .07

9 9

%

5 9

$ 26o.78il.89

, »

«

$ 7.‘•20.185.27

T-f
oo
iHSSEAPOLIS AND HELENA BRANCH
OPSRATIGIS OF CHSCX CLEARING AHD COLLECTION DEPART/DOT
lotion. ffqribcrs andAgomts o . Ueros handled by Months during 1927. with Totals for 1923, 192H, 1925, 1926 and 192 f
f
.

Detailed

(In thousands only *000 omitted)
IT8MS DRAflN OH BASICS IF COT DISTRICT
Interchangsd
Branch and
0th.r Bank.
Head Qfflag.

Local

Month
1927

Sfti
Jan.

326

m .

289

Mar.
Apr.

320

360

307
317
Air

Aa*>

Sept.

Oeto
SdTo
Dee.

imwnt

1*2,595

117,288

ltt,7l6

133*091
«|,S16
W9#2S
1 *1 ,1 6 2

3?

1*9,290

yS

X75.5A

3,67

198.591

■fS
SiL

Total *0<* 1,827,5*9

3 3

1923




»o9

8

9

8
8
8
9
9
8
9
9
q
1®

k«am\

52s.

58,33*

1^07

.325

1298
1585
1480
1*19
1527
1398
M29
lUgO
1§83

Amount Wo. Amount

f

,818

7 9 .0 5 2

7 2 .Hu

n . oo*
*» ,iu
95.610
8S.H97
81-872
881t1 0 i

69 .**78

3

1.980

2

1 ,$ 6 2

1,809

JfiJl

3
3
3
3
3
3
3
3
3
JL

18009 1,098,073

35

31.537

1628

8 7 .1 6 7
5 3 .6 1 9
8 3 .2 7 2
9 1 .5 3 5
8 7 .6 9 7

89,082
100,380
U9.617
105.36^

1 ,9 1 9
1 ,8 6 0
1 .8 5 2
1 .9 6 6
2 ,1 3 9
3 .7 0 2
4 ,6 7 6

*.9?8
3.17ft

ITOtS DRAWN ON BATIKS NOT IN 9TB DISTRICT
Direct
Sendinss
S?. A o o ^

3
3
3
3
3
3
3
3
3
3
3
3

*.373
3.10(3
3.857
3,889
3.2J50

Other Re-*
serve Bks,
NO.

113
iS

23.693
19.609
24, 1+57

7.7*5
6,505
8,265
8,911
7 .7 p
9.169
8,173.

S :S

*,896

91

36 *6 82fc

1201

*.10 5

Amount

23.292

H,°5°

3.7*2
4,281

Amount ?fet

105
96

98
9U
100
92
101
98

Treasurer of
United States

2&.971

23.289
* .7 3 7
26.353
SH.l^

2&.S95

65
57
72
7?
74
J°

69
67
7*
86
67
70

8,656

9.1*0
10,879
10,063
9.373

287.396 850 10^,672

TO AL FO
T
R
1927
Ho
O

Amount

1926

322.015

1756
2146
1998

267.770

1910
2026

1895
1955
2008
2252

2143

2223

33^.089
32»+,»+50
322,82'+
359.887
340,018
31+
7,206
401,855
1 60,622
+
*U3.7*fc
382.672

2^238 ^,277.152
2>«38

TOTAL FO
B

1926
Ho.
2089
1877
2286
215U
2029
2168

2C52
1938
2035
2219
2159

2100

Amount
366.336
286,I 5U

373.972
3W ,9%
326,560

365.627

36&.215

3*+5.339
375.299
416,218
391.996
379.785

25286 U.336,1+50

277.152
2528^ U,336.U50
26551
U,0 0 9 , 2 0 6
26206
3 . 5 1. 2b
6
2
27*122 3.U12.138

HELENA BRANCH
REPORT OF T I TRANSIT DEPAHTliEHf FOR TUB YEAR 1927
HS
Clearing*
Number
Amount
19,000 $
7,990,000
January
6p531,000
February
16,000
March
20,000
7,626,000
18,000
7,952,000
April
May
18,000
7,135,000
18,000
Jane
8,198,000
18,000
8*800,000
M y
August
17*000
8,841,000
Septesfoer
18,000
9,791,000
October
20,000
12,956,000
18,000
ItfnAir
11,040,000
December
10.138,000
19.000
Totals
s w j w r 1 Ide,d$S,Gbd
Monthly Aver •
XtSflU
18,000
Monthly Aver •
Amount
8,916,000

To lead bJfice fey t s
J
Number
Amount
January
February
March
April
May
June
July
August
September
October
November
Deoember
Totals
Monthly Aver.
Item*
monthly Aver.
Amount

2,000
1,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
£3,oo6




# 1,725,000
1*271,000
1*619,000
1,684,000
1,622,000
1,623,000
1,771,000
1,844,000
3,411,000
4,320,000
4,644,000
2.872.000

Member & Son-Memoer
Number
Amount

r
Drafts on f s
Number
Amount
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3§,66o

$

7,694,000
6,389,000
7,713,000
7,632,000
7,600,000
8,565,000
8,017,000
8,747,000
8,838,000
12,095,000
11,440,000
11.045,000
£ioe,773,fl5o

3,000

152,500
8,814,000

to Other keserve bank*
Number
Amount
7,000
# 2,699,000
2,317,000
6,000
6,000
2,805,000
6,000
2,510,000
6,000
1,757,000
7,000
2,194,000
7,000
3*516,000
8,000
2,310,000
7,000
2,953,000
7,000
3,286,000
7,000
2,779,000
2.493.000
8.000
"wJSSr- ' I ST,8S575W

2,357,000

11^688.000

treasurer o * tj.S.
i
Number
Amount

7,000

2,000

127,000 # 9,786,000
8,020,000
116,000
154,000
9,712,000
9,877,000
147,000
9,535,000
142,000
153,000
10,452,000
144,000
10,398,000
149,000
11,139,000
157,000
13,322,000
179,000
17,669,000
179,000
15,161,000
183,000
15,186,000
i,8S6,o6o " lItf,2Sf,Mo

9,000
9,000
12,000
11,000
11,000
12,000
12,000
12,000
12,000
12,000
10,000
10.000
142,500

I 1*084,000
842,000
1*245,000
1*367,000
1,190,000
1*271,000
1,263,000
1,392,000
1,330,000
1,569,000
1,654,000
1*424,000
?1K,^1V5o o .

llfOOO
2,633,000

» 1,303,000

-

2,322,000

(BAND TOTAL OF AM0T7IT8 »

$428,660,000

GRAND TOTAL OF ZTSMS

82

FEDERAL RESERVE AOMTT S OFFICf
(MITOfEAPOLX8 OILT)
The unites of work u s l p w d t r tbi Federal Reeerve Board9• Functional
g
Expense Manual to the Agent's Offioe are Federal Reserve Vote Ziwtii Bank
Relatione* Bank Examinations and 8 tatistioal and Analytioal 0
lbs oost of issuing Podaral Reeerve Iotas, including records and reports*
was |S,180.44 for 1987 and #2*841.11 for 1926, employees salaries being aooount*
able for the Majority of tbs slight inereas
The Bank Relations expense for 1927 vim #6,282.12 as ooapdrod t e
f
#7,242.49 for 1928. Bsployees salaries inoreaeed #386.44* offioers salaries
decreased #272*68 and misoellaneoue expense decreased #1*073*28.
Tbe statistical and analytioal unit (Including Administration) expense
during 1927 was #16,012*67 as oompared to #11*816*52 for 1926* an inorease of
#1,196*16.

Salaries paid to employees inoreased #2,471.81; salaries paid to

offioers deereased #1*114.99 and miscellaneous expense deoreaaed #160*17*
Tbe ooets of tbs monthly letter for 1927 were #8,859*14 as compared to
#8,040*27 for 1926, an inoreaee in tbe ooet of printing and stationery of
#886.60 and a deorease in the amount of postage of #17.78 accounting for the
inoreaeed expense.
The library expense for 1927 was #1*461.80 as oompared to #1*828.82
for 1926* the deorease in expense being distributed as follows: #68.80 employees
salaries* #199.80 books, news service, eto.* and #109.22 miscellaneous expenses*
The bank examination unit ooets were #26,609.62 for 1927 ae oompared to
#24,014.97 for 1926, an inorease of #1*694.65. The oost of Bational and State
Bank Examiner^ reports for 1927 was #7*662.00 as oompared to #8*149.00 for 1926*
The ooets of tbs Federal Reserve Vote Issuee unit is given under tbe
eoments under Federal Reserve Votes.
BAHK PBLA.TI0VS
lumber of
Offioers
First Balf 1927
.80
Seoond Self 1927 .58
Total 1927
Monthly Average
First Balf 1926
Seoond Btlf 1926
Total 1926
Monthly Average




Offioers Wumber of
Salaries B^loyees
.61
12,660.02
1.787.49
.60
t4.847.61
# <62.29

.75
.75

$2.3X0.02
2.810.02
jsrao.sr
# 885.00

Employees
Salaries
T 698.48
^ T2LS&
$1,820.66
$ 1X0.06

.66

.61

Other
Expense
#861.72

Total
Expense
$3,5X6.22
2,116*90
202.88
Ssel.bs *6.232.12
47.00

* 619.84

1 464.95
$665.86 $8,880.82
620.17 X.081.48 *8.911.67
$ 986.12 fi. 637.S3
$82.09

$ 186.4*

$ 603.64

83

STATISTICAL
(Including Administration)
Humber of
Officers
f i r t i h s ir

IM P

Saoond half 192?
Total 1927

.to )

.90

Monthly average
first half 1926
Ssoond half 1926
fetal 1926

Officers Bumber of
Salaries
dcyees
ISTHOS"
975.00
4*41
ySJHTM

*65
.85

$2,252*50

9*92
9*58

Other
Expense
T"t80ff
493.42
in r a r gg

Total
Expense
#7^26*60'
5*186.07
tiyf f i o r

& 714*89

t 282*50

Bnployees
Salaries
’ W EIT
IT
3,717*65
wnm.Tr

£

86*99

# 1,084*98

#2,945*79

? 438.78

$ 5,697*07

^XBflTS

Monthly average

i 575.41
-

StfOT.'tt
$

C 508.95
*

MONTHLY LETTER
Printing and
Postage
Stationery
477.02
vl»521*81
950*00
1,210*51

first hail1 1^27
Seoond half 1927
Total 1927
Monthly average

100.34

$

984.71

Total
‘
,1,798.8#
1,860.91
?5,8W.H

68.98

$ 211.01

$ 279.92

First half 1926
Seoond half 1926
Total 1926

- 350.00
I
494*75
m e w

~ 1 055*91
;,
1,159.61
Im S O ?

$1,886.91
1,664.96
$3,040.27

Monthly average

f

& 182.96

$

70.99

182.96

LIBRARY
Number of
Baployees
firsTKjay I W
•h
Second half 1927
*54
Total 1927

Nsps Service &
Other
Salaries Subscriptions Books
Expense
% 448.9? $176.96
3 114.19 " T "TC.BS
278.50
88.67
.25
278*21
$ 202.85 7— V O G
JTTWJSF

Total
Expense
$ 815.67
645.65
?T,750(5

Monthly average

:

6.31

f

First half 1926
Second half 1926
Total 1926

*75
*46

Llonthly average

60*62

§ 97.95

16.91

$

478*46
907*51
r ~ m m

§158.10
551.78
SOOT

* 203*67
164*28
?.1 S O F

$

21.28
165.74
3TT8F.155

$

65*50

# 40.82

#

$

£

0

V
-

50.66

15.42

121.77

861.51
967.51
$ Y ; m M
152.40

BASK EXAJHTTATIOJfS

fixtnSEi i s w
Second half 1927
Total 1927

•94

Monthly average
first half 1926
Seoond half 1926
Total 1926
Monthly average




*65
*65

Officers
Nteaber of
Salaries Bnployees
v2,596*6o
AM
2,820.00
5*42

Employees
Salaries

l 449*58

Jfumber of
Officers

J

|1,862*48
1,862*51
: 910*49
■

5.80
5.98

Other
Sacpense
nto,w.w
4,726.81
4,564.85

fXnr,im.w*

778.69 $

Total
Expense
12,111.64
*25,£6$.&8

905.85

: 2,154.15
•

$4,555.98 $ 5,680*92
4,515.59
5,758.59
|8|iV]l.57 ® 7 ^ o r

fll,893*48
12,116*49

739.88 $

951.55

$ 2,001.25

84

& £ £ & & £
1927
She examinations and credit investigations aadehy this Department in the
itridQi stats* in the ninth federal Reserve District wars as fellows*

Minnesota
Montana
fforth Dakota
8outh Dakota
ViseoBslft

mimL&B&i

Credit
teffljhBRUgBft
9
29
13
4

iwdflsllsaE
1
I

11
_ __ 3^

68

frttMML
Total tf
CfAlt la,
yestlgatlpns
7, m « Bailey
Herbert Eallenherg
S. Do Sharratt
■U A 0 Cutler
H» Co jTcnes

2

38
26
3
68

Assisted aa Credit
fam tkatto m
I* 0 Jones
Ho Do Sharratt
Ho Co ?lsft>erlake
Ao Ao Hoerr
_

I
I
T

■ratal
jS E E
8

36
2?
3
.
70

of aalair
$
77.24
1,206,56
781*31
80.68

^ lwB|38P
3 2

,

8 7 8 ,6 8 9

21,207,399
20,634e324

mjs^

i 2|*y7»8§
t s o
9 * n d Hi

28,320

78,483*094

22

4
1

$

28
2

70

584.62

5,830

$ 2,'m.M

28,850

$75,483*094

Examiners also made five special visits to member hanks ihen examinations
wars not made* Mileage shown in tha above table includes mileage traveled in asking
these special visits0
Office Wcxk
HOo of roports received fro® the Chief National Baak jgwrtner** Office,***^
(Bio cost ef these reports aggregated $7*482*50 for the calendar year)

I< 3 6
,8

150 duplicate copies of the reporteof examination of Montana National Banks
were received from the Chief Sxaminer's Office, and the cost of these add!*
tlonal copies aggregated $337*50 for the year,

ill ^ the oritlcleafele paper contained in the report* of examination of hades
that harrow, with the exception of Montana banka, was listed alphabetically
for the Discount Department®
Bfifflrtt rf
pf g*»tt Mipflrcr iMfa
NOo of reports of examination received from the varioni State Banking Pepartaents
in the Ilnth District of State member hanks examined independently by them0» 21
All reports of examinations and credit investigations made f y federal Reserve
e
Bxaminers ef state hanks in the Hiath District vero typewritten in this office and
en* 80$y aas forwarded to the Federal Eeserve Board, m o copy retained for our files*
one copy forwarded to the varloua 8tato Banking Departments In the Hiath District,,
and one copy forwarded to the bank examined.




85

»2®

All of the ©ritioisable paper contained in the report* of state member
banka that borrow, with the exception of the Montana hanks 0 was listed alpha*
betically for the Discount Department0
All of the reports of state meznbor banks were analysed on comparative
analysis sheets to ascertain the progress made from one examination to the next.
When state member banks were shorn by reports of examination to be in
an unsafe or unsatisfactory condition, special letters were written either to the
bank or to the State Superintendent of Banks, calling attention to the unsatis­
factory and criticised matters 9 with a request or direction that correctire ac­
tion be takeno Copies of replies received from such menfcer banks were forwarded
to the Federal Reserve Boardo
Reports of Earnings and Dividends and Reports of Condition
Approximately 60
000 reports of earnings and dividends and reports of
condition were received, cheeked and recorded.
Applications for permission to exercise fiduciary powers approved, etc.
The following applications for permission to exorcise fiduciary powers
wore approved by the Federal Reserve Board during 19271
Name of Bank
First Rational Bank
Iron National Bank
Miners National Bank
First National Bank
First National Bank
First National Bank
First National Bank in
Grafton National Bank
Citizens National Bank in

Location
Lake Linden, Micho
Iroowood, Mich.
Ishpemingg Mich.
Calumet, Mich.
Laurium, Micho
Fairmont, Minn0
Minneapolis, Minn*
Grafton, N. Do
Sioux Fall8e S. Do

Date
Approved

Capital
#100,nxr
4- 6-27
100,000
100,000
6- 6-27
9-27-27
200,000
10- 5-27
100,000
100,000
1-19-27
10-12-27 6*600,000
6° 3 = 2
<>7
100,000
6-1047
100,000

‘ ^ 17^27
1

Powers
Uaiisd
Limited
Limited
Full
Limited
Full
Full
Full
Full

Twelve applications of individuals for permission to serve at the same
time as directors, offioers, or employees of a member bank and not more than two
other banking institutions under the Clayton Act, were received and approved by
the Federal Reserve Board during 1927,
One hundred twenty-one applications affecting the stockholdings of mem­
ber banks in the Federal Reserve Bank were received and approved during the year.
Applications for National Charters
Total number of applications referred to this office for recommendation.«° 24
(Of these, 14 were granted charters by the Comptroller of the
Currency, charters were refused to 6, and the organisation
was incomplete as to 5 on December 31, 1927o
)
Information regarding suspended banks obtained from State Superintendents
During the year at the request of the Federal Reserve Board, we mailed
forms to each State Superintendent of Banks9 requesting information on suspended
non-member bankso These forms show the capital, surplus, deposits and borrowed
money of the banks at the date of olosing} also the primary cause of closing and
contributing causes o When the information is received from the various State
Superintendents, it is then forwarded to the Federal Reserve Boased




86

3»
"
B A M CHARGES IH 1927
Total number of member banks in the district Jan* 1,

. 792
, 16
1

Hational banks absorbed by non-member state institutions.
..
Hational bank absorbed by member state institution..
.
Rational bank consolidated with another national bank
Hational banks succeeded by other national banks...
Hational banks succeeded by non-member state banks..•

Total number of member banks at the end of the year......

State
BSBflto.".-..............

State Member
feanks
“T -

~vr

Hational
BanGT
289
73
142
99
46
- w

9
1
4
1
3
1
31
1
1
1
6

61
748

Total
~ir
304
97
144
108
47
“W

A* Membership
At the olose of the year, there were 748 member banks in this
as compared with 792 raember banks at the beginning of the year .
a net loss of thirty-three national, banks and eleven state banks*
membership at. the olose of 1927 was divided into 687 national
61 state banks* The new members are:
Ho*of Shares
game of Bank
Location
Subscribed

district,
There was
The total
banks and

Columbia Hational Bank of
Beoker County Hational Bank of
Pioneer Hational Bank of
Western Hational Bank of
First Hational Bank in
Central Hational Bank of
Fifth Horthwestern Hational Bank of
Fourth Horthwestern Hat’l Bank of
Minnehaha Rational Bank of
Third Horthwestern Hational Bank of
Security Hational Bank of
Citisens Hational Bank of
Midway Hational Bank of

MINNESOTA
Columbia Heights
Detroit Lakes
Duluth
Duluth.
Jackson ,
Minneapolis
Minneapolis
Minneapolis
Minneapolis
Minneapolis
Montevideo
Olivia
St* Paul

Security Hational Bank of
First Hational Bank in

RORTH DAKOTA
Hope
Langdon

18
36

First Hational Bank of

SOOTH DAKOTA
! e Heights
*e

21

18
33
72
72
24
90
66
90
72
162
36
21
90

HATXOHAL BANK RESTORED TO SOLVENCY
First Hational Bank




Hardin, Montana

46

87

MEMBER B O O SB7BRIB0 QOBBBOTIOEB WITH THIS FEDERAL RESERVE BAPK DPRIMg 1907
BATIOHAL BAHK3 ABSORBED BT BOfr»MEMBER 8TATE IHSTrTOTIOHS
Date
£33=127
4-6-27
10-24-27
12-27-27
M947
4-18*27
2-11-27
4-22-27
7-1-27

Bo*of Shares
Mass of Bank
Looatlon
Surrendered
HiSFlKIonal Bank
KBSTteaa*
~ T » -----(Absorbed by State Beak of Henska)
Firet Mational Besik
Slayton, Mlsm«
21
(Abeorbod hy 8tete Beak of Slayton)
Brookenridge Mational Beak
Breokenridge, Mian*
86
(Abeorbod t r Far* f Mer. 8tate Baiik, BrMtonrldfi)
g
t
Firet Batlonal Beak
Brloelyn, Han*
18
(Absorbed t r Stato Bank of Brioelyn)
a
*iret Bational Bank
Belt, Moat*
20
(Abeorbod I r Faraere f Miners State Beak, Bolt)
g
t
First Bational Bank
Balarille, Moat*
20
(AfesoylM Il Faraere State Beak, Balarille)
fr
City Satioaal Bark
Linton, V* 0*
21
(Absorbed by Peoples State Beak, Linton)
U n 8took Batlonal Bank
Mettlnger, B* D*
80
(Absorbed b r Adaas Oouaty 8tato Bank, Brttinger)
g
First Bational Bank
Byadaere, H. D*
18
(Absorbed ty Bank of B^ndaere)
BATIOHAL BABK ABSORBED BT MEMBER 8YATB IB8TITOT10E

9-29-27

First Batioaal Beak
(Abeorbod by State Bank of Medelia)

Medolla, Mian*

24

BATIOEAL BABBS ABSORBED BY OTHER BATlOiAL BABK8
1-17-27 Merohsats Batioaal Bank
8t* Cloud, Mian*
(Absorbed b r Aaerloaa Batioaal Baak9 St/Cloud)
g
4-20-27 Faraere Mational Bank of Alexaadrla
Alexandria, lOaa*
(Absorbed ty Famers Bat11 Besik in Alexandria)
8-19-27. Merohaate Batlonal Bank
Dioklnson, B.D*
(Abeorbod ty Firet Mational Bank/ Dioklnson)
8-7-27 First Batioaal Bank
Wetoaka, 8 * D*
(Abeorbod f y First Batlonal Bank, Aberdeen)
c

74
90
48
18

BATIOHAL BABK C0BS0LIDAT5D WIfH AB0TH3R BATIOHAL BABK
4-2-27 Moorhead Batioaal Bank
Motorkead, Minn*
(Consolidated with First Batlonal Bank, Moorhead)

80

BATIOHAL BAIKS 8BCCESDED BT OTHER BATIOHAL BABBS
4-28-27

Hope BfctlonalBank
Hope, B*D*
(8uoooodod l y Security Mational Bank, Hope)
a
11-21-27 Firet Batlonal Benk of Langtan
Lengdon, B. D*
(Suocoeded by First Batioaal Beak in Lang&on)
1-17-27 Firet Batlonal Bank
Wessington, S. D.
(Suoooeded by Citisene Batlonal Bank, Wessington)

88
48
24

BATIOHAL BABKS SBCCBEDSD BY B0B-M8MBER STATE BAHKS
1-6-27 lyon County Batlonal Beak
Marshall, Minn*
(Suoooeded ty Marehall State Bank, Marehall)

42

STATE gEMBBR BABK ABSORBED BT A HATIOHAL BABK
2-4-27 Deposit Bank end Trust Company
Winona, Minn.
(Absorbed ty Firet Mational Bank, Winona)

300

STATE MEMBER BABK C0H7SRTKD IHTO A BATIOHAL BABK
9-1-27 Columbia State Benk
Columbia Haights,Minn.
(Converted into Columbia Hat'l Bank, Coltanbia Heists)




18

88

6»
HATIPETAL BAHK8 UQJIDATSD DOS TO XHSQLVBNCY
1-17-27
1-17-27
1-29-27
1-29-27
2-2-27
2-11-27
2-16-27
2-21-27
2-21-27
6-4-27
6-4-27
8-19-27
8-26-27
4-6-27
5-24-27
4*6*27
4*25-27
5*9-87
6-9-27
6*17-27
6*17-27
6-17-27
6-17*27
6-10*27
6*24-27
8-15-17
6*19*27
8-27*87
9-20*27
18*80*87

Fanners National Bank
First national Bank
First national Bank
First national Bank
Citizens national Bank
First national Bank
First national Bank
First national Bank
First national Bank
First national Bank
First national. Bank
First national Bank
First national Bank
First national Bank
Parsers national Bank
Oakes national Bank.
Anmoose national Bazik
Peoples First national Bank
First national Bank
First national Bank
first national Bank
Farmers national Bank in
First national Bank
First national Bank
Parmsrs & Iferohants Hat'lo Bank
First national Bank
Oltisens national Bank
First national Bank
First national Bank
First national Bank

Brookings, S* Do
Benson, Minno
Kannaford, N. Do
Brandon, Minn*
Ortonville, ? ; n *
.in
Detroit Lakes, Minn*
Leeds, H* Do
Gonyiok, Minn*
Elkfcon, S. D«
Colaan, S* D*
Argyle, Minn*
Bosh City, Minn0
St* James, Minn*
Beardsley, Minno
Bed lake Falls, Minn*
Oakes, H* Do
Anamoose, H* Do
Olivia, Minn*
Montevideo, Minn*
Boyosrvllle, Wlsoonsin
Carlyle, Mont*
Lldgerwood, Ho Do
Stanley, H* D*
Clinton, lOnn*
Aloester, S* Do
Edgeley, n* Do
Albert Lea, Minn*
GraftOn, H* Do
Rolette, H* D*
Biwabik, Minno

69
24
15
21
20

45
18
18
27
84
86
86

45
18
18
84
19
80
69
18
17
81
19
21

48
64
46
60
18
20

HATIOHAL BAHKS VOUJHTARILY UOJXDATED
18*80*87

First national Bank

Raymond, Mont*

18

STATE MEMBER BAHK LIQUIDATED DIB TO IH80LVEHCY
7-14*27

Farmers A Merchants State Bank

Saoo, Montana*

18

STATE M36BBR BAHK WITHDRAWALS
1-6-27
8*6*87
8-16*87
8-6*87
7*24*87
9*18*87
10*82*87
11*85*87

Oltisens 8tate Bank
Bask of Ellsworth
Farmers & Miners State Bank
Seeurlty State Bank
State Bank of Hew Riohland
BradleyBank
Farmers State Bank
Bank of Boulder

Hew Ulm, Minn*
Ellsworth, 1Hs«
Balt# Monte
Lewiston, Minn*
HOw Hohland, Minn*
Tomahawk, Wis*
Hsyfield, Minn*
Boulder, Mont*

120

46
88
86

46
46
26
21

M B H M BAHKS THAI HAVE BSEH ABSORBED B7 OTHER BAHKS AHD WHICH HATE HOT
......................

Bats
11-12*25
12*14*26
l>26*86
6*26*87
7*6*87
lt-5L*i7

a m

wamagm

Hams of Bank

t

u

r

n

s m r w m mum; vrnm m

^

'—

Location

Bankers national Bank.
Minneapolis, Minn*
(Absorbed by Metropolitan Hatlonal Bank, Minneapolis)
first Hatlonal Bank of
Litohfield, Minn*
(guooeeded by First national Bank In Litohfield)
E4oa Hatlonal Bank
Rioe, Minn*
(Absorbed by First national Bank,Rloe)
First national Bank
Long Prairie, Minn*
(taken over by peoples national Bank, Long Prairie)
First national Bank of Jaokson
Jaokson, Minno
(Suoceeded by First national Bank in Jaokson)
Bibbing Hatlonal Bank
Hibbing, Minn-,
(Taken over by First national Bank, Hibbing)




89

<>c
=§»

CLOSED ,m!BER B 1 I S THAT HAVE HOT AS YET SflRRENDERH) THEIR STOCK IN
AIC
---------- —
m m a a s n m m m w ---------Date
4-26 = 2
>7
7«14“27
12~10<=27
6-20“27




Ham© of Bank
How First National Bank in Lambertan
First National Bank
First national Bank
Firat national Bank

Location
Lamberton, iUnn*
East Grand Forks, Minn*
Hope, N. Do
F.onnobeo, S D
.

90

m m L j m m j m
Statistics covering operations in Federal Reserve Kotos for the
past year show that the amount of notes both issued and retired u r i It••
than ftor any other year sinoe 19X7.
m

Tho amount of notos issued in 1927

$36,694,600 or $10,000,000 loss than tho issue of 1926.

Vo* notos

*6«tt0* to tho bonk amounted to $21,209,000 and notos whioh hod previously
boon la circulation were reissued to tho aiowfe of $16,485,500.

2a 1916

tho issue m s di-ridtd into $51,312,000 of now notos sad $18,390,000 of
notos previously circulated. More fit-for-use notos would have boon used
ia 1916 bat no did not have them available.
Receipts' of our now notos from tho Oosqptroller of tho Currency
during tho year woro $19,080,000, a muoh lowor total than usual as our requlraaoats for a number of yoars oallod for muoh heavier shipments t r m
Washington*

On Deeonbor 51, tho Agent had on hand $10,174,000 ia BOW

notos or approximately $2,000,000 loss than tho amount on hand at tho oloso
of 1926,

fhe total of notos hold was greater, however, than ono ysar ago

by foaooa of tho USfd notos on hand haring inoroasod free $1,909,000 on
Oeostiber 51, 1926 to $7,560,000 at tho oloso of 1927#

At tho oloso Of 1926

tho Agent had no fit notos on hand in denominations of 5*s, 10* s sad 20*s.
On December 51 the amount of suoh denominations available for further oiroulation was $5,490,000.
Outstanding notes as shown by the Agent»s reoords were $66,910,656
0* December 61, 1927, a deorease of $6,162,566 during the year,

Tho teak,

however, hold loss notes in the oash than ono year ago so that the aotmal
doorcase of notes ia the hands of the public during 1927 was $7,666,000*
Our destruction schedule for the year has been gratifying for the
roaooa that the amount of notes destroyed was $26,970,856 in ocoqparison with
aa average of $85,800,000 destroyed for oaoh year siaoe the dostruction of
notes took on importance.

Xt is quite likely under present oonditioas that our

aotos destroyed in 1928 will not show a larger average than $2,000,000 per
aoath*

Out of a total of $596,046,000 in aew notos issued by the Agent since

organisation, a total of $320,785,000 has been destroyed at Washington.

Re*

Issues of notes totalled $110,283,000 making a grind total of deliveries




91

to the baak by tha Agent sinoe organisation of #505c279D000o

In percentage of

denominations issued during 1927 there was a gain in the issue of $10 bills
only over the 1826 *ssue, all other denominations showlag a decrease e At tha
present time the amount of |20 bills In circulation is more than dsuble the
amount of |5 bills and exceeds the amount of $10 bills by iSoSOOpOOO© fho per*®
«
r
centag® of higher denominations issued in 1927 dropped noticeably and indicates
that money stored away has been redeemed0 at least In part0 or oxohangod for
smaller denominationso
Oost of note printing during 1927 was $31P502o50 to which must bo added
|20614o8S of expense covering insuranoe and shipping oharges on notes seat to
Minneapoliso Tf to June 30P 1927 printing costs were on a basis of $86o60 per
Jc
1000 sheetsD after which date the costs were lowered to #35<>60 per 1000 sheets «
This reduction would lower 1928 costs approximately #800 .on a liko volume of
notes and at this time an estimate of the yearly costs would be |8O0
OOOo tho
shining oharges on any notes sent us calling for an additional $2,500 of oa$onse0
From the latest statement received covering the amount of notes printed
and on hand at Was hlngtan, we have a stock amounting to §86*880,000 which is
approximately 26 per oent more than was held a year agOo
Payments of gold certificates have had considerable bearing on our
issues of Federal Reserve notes o Nearly |4f
7000
000 in gold certificates wore
sent us by the Treasury Department during 1927 for issue and these notes are
steadily redeposited with us0

FEDBRAL RESERVE KGTE ISSUES
Humber of
Off io©rs
First Half 1927
Second Half 1927
Monthly Average
First Half 1928
Seoofid Half 1926
Monthly Average




o25
e
21

Officers
Salaries
$

600<>00
667 o51
( ioSfffoW
4
$

$

lOOoOO

154©98 $

i

749c
90
848o
60

V

066
088

<
?
•
§

153*21

Total
Expense

Other
Expense

o55 1 668o50 * 26o96
26028
o93
10
191*24
# lP869o74
'W 3 S

105*62

600oOO
o26 |
o25
600c
0O
$ rjswaw
#

l tc be of Employees
i a r
Employees Salaries

4,43

21o04
21067
r “% O T
i
V

$

lp2960
46
l»884o98
X
# m W T M
1

a

e

265o04
lp370o94
1^470«17
1 M l oil
256o76

92

FEDERAL RESERVE NOTES RECEIVED

AND

ISSUED BY AGENT DURING 1927

IN HANDS OF AGENT DECEI3ER 31, 1926
NEW
FiT FO?.'USE
117660,000
r
3.240.000
2.800.000
635.000
450.000
940.000
450.000
479.000
441.000
433.000
834.000

Fives
Tens
Twenties
Fifties
Hundreds
Fire Hundreds
Thousands
Total ----

TOTAL
$ 3,660,000
3.240.000
2.800.000
1.085.000
1.390.000
920.000
1.267.000
$14,262,000

# 12,303,000
RECEIVED FROM
COMPTROLLER

'
TOTAL
RECEIVED

-------- m --------

# 6,3257000
7,000,000
5,760,000
330.000
430.000
12,500
64,000

Fives
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands

Total----| 19,080,000

NEW
6/SS5,000
8.720.000
6.320.000
175.000
280.000

Fires
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands

# 21,209,000

#39,966,500

ISSUED TO BANK
------Firm
use
# 'SVaRT.tOT”
6,030,000
6,880,000
275.000
600.000
60,500
#15,486,500

IN HANDS OF AGENT DECEMBER 31, 1927
NEW
u r m w
# " ■SIF7&W
■
4.255.000
3.245.000
1.520.000
1.330.000
2.240.000
690.000
276,000
280.000
660,000
403.000
479.000
487.000
800.000

Fives
Tens
Twenties

Fimas

Hundreds
Five hundreds
Thousands

Total----# 10,174,000
1927




$20,876,600

34,000

Total-- -

Fives
Tens
Twenties
Fifties
%adrrts
five Hundreds
Thousands

#10,886,000
15.276.000
12.970.000
330.000
430.000
12,600
54,000

37 06
33 o3
lo2
20
4
ol
.1

I M
W

# 7,350,000

TOTAL
# 9,386,000
13.750.000
12 200.000
450.000
880.000
50,600
34,000

.

$36,694,500
TOTAL
# 571X57000
4.765.000
3.670.000
965.000
940.000
882.000
1.287.000
#17,524,000

RATIO OF ISSUE BY DENOMINATIONS 1920-1927
T O ” .T O
H I T "
1921
■"t o t
ira
§6.f#
31.8*
33.2
31.4
27.3
27.1
31.9
29.1
29 0
4
29o3
30.9
32.8
28.2
33.3
303
2 01
1 .0
2.4
4.7
1.3
3o6
4o7
6 .6
3.2
lo7
2.4
1.4
.2
.8
.4
.5
ol
lo7
.4
06
I06
__ .B
1 .0
100 c C
'^
l R T C £ 1 5 0 ^ 15570^
T3r^

1920
■50#
33.2
33«8
lc4
2.4
o
2
1 .8

XOO o0%

mmmL m m m

hotxs isssm A m m & m m m s u m oiqahizatiot

m i m
X.3«M >00
3.2*»,000
3 . 6 0 .0 0 0
3
2 , 875*000
1.600.000

January
Tebroary
March
April
June
My
Angast
September
Qetoter
Hovember
Deceraber
Sbtal for
Tear

.

1.

1 .925.000
1.975.000

2 . 705.000

4.435.000
2.595.000
iLMg.Qfig

2.165.000
2.580.000
3.Z30.000
4.330.000
5 . 8 5 .0 0 0
7
5 . 7 0 .0 0 0
6
2 . 7 0 .0 0 0
6
4.920.000

*3 9 .4 5 0 , 0 0 .
0

$3 9 , 6 5 , 0 0 ,
2
0

1 200.000
3

, 3 0 ,0 0 0
1

3.420.000
8

.1 3 5 . 0 0 0

% 1.910,000.

,1 5 0 , 0 0 .
0
2.370.000.
2 . 665. 000.
2 , 647, 500.
1.5P.000.
3 . ^,500.
9
3,880,000.
3 . N0 . 0 0 .
3
0
2 . 9 5 . 00.
5
0
3 . 10 .
3
000 .
U,210,000,
7.*i40.000.
2

2.090.000.
3.505.000.
2.705.000.
2 ^ 5, 000.
3 . 2 5 . 00.
1
0
3.465.000.
3.140.000.
5.645.000.
6.420.000.
2 . 777. 50C.
6.102.500.

$40 , 205, 000.

#43,360,000,

I8sued
Issued
Issued
Issued
Issued
Issued

3 , 11,
0
100 .

$ 4,186,900.
3,268,250.
3.839.300.
4,556,620.
4.332.100.
>♦,729.950.
4,050,610.
4.353.300.
4.195.100.
4 . 387.* 50.
4 .0 10 .10 0 .

♦Ho,766 ,785.

$49,748,580.

$
febraary
Mnrtit
April
May
Jim
Jtrty
AOgOSt
September
October
Ifevember
December




.6 1 7 .3 9 5 .
3.297.800.
3 . 1* . 335.
0
3.
263 .
090.
3 . 030, 695.
3 , 12 2 , 6 5 .
1
2
3 . 2©».5554

3.517.300.
2,416,000.
3

. 1 0 ,3 5 0 .
3

4 , 950. 350.
4 , 144, 050.
3,251,000.
3.236.000.
2 , 905, 400.
1 . 939. 800.
1 620 700
1 , 724, 100.
1 , 993, 600.
2 , 084, 700.
2.606.000.
g . 32g .,680
$32, 784, 320. $

, , .

in
in
in
in
in
in

191^
1915

1916
19X7
1918
1919

M 24
$ 1,790,000

7,250,000

2 , 270,000

2,
030,000

10,910,000
2,195,000
3,115,000
2,265,000
4 . 680.000
7.025.000
3.910.000
4 .^95.000
$51,835,000.

in
in
in
in

1916
I917
19X
8
1919

1 ,765, .
000

3 . 335. 000.
2.415.000.
1.690.000.
2 . 175. 500.
4.175.000.
3.320.000.
3.285.000.
7.625.000.
3.750.000.
4.790.000.

5. 620. 000-

$43,885,500.

1926
905,000.
2 , 170, 000.
3. 435. 000.
5.300.000.
1.690.000.
6.145.000.
5. 735. 000.
1.065.000.
5.661,500.
4.690.000.
5. 240. 000.
4 . 66q . 500.

$46, 702, 000.

05
1927
$ 1 ,490 , 000 .
1 . 410. 000.
2.220.000.
3 , 7o4 ,ooo„
1.170.000.
2,865,500.
4 . 950. 000.
1.215.000.
4 . 800. 000.
5.715.000.
3.330.000.
1 . 825. 000.

$36,694,500,

2609 o
000
13 J k ? , 000o

9 , 980, 00Go
^2, 230, 000
.
57,x 5o,ooo 0
39, 990, 000.

AT fASHTNffjftff
3S
2m
m1
2, ^ 3, ^ 0*
fXxe9,8oo
2 ,^0 2 ,5000
1,808,5000
2 ,XT0 s000o
1 , 906, 300o
2 , 2 * , 200*
10
2 , 208, 200*
3 , 503. 000.
3,083,300c
1,gT 2 .S00o
2, 363,0000
2, 606, 800.
X,803, 500o
2 , 2 1 ,600o
1
X*937.600o
X, 612, 200o
2 , 7^2 , 700.
2 , 5 6 , 10 0 .
3
1
2 ,X0 6 ,600 o
2 ,X22,330c
2 , 120, 695g ,a 0 a2SP»
27, 320, 330$28, 173, 395.

Destroyed
Destroyed
Destroyed
Destroyed

132^

$

295. 955-

3 6 * 118 0 5 *
77

$ 2 , 083, 600c
1,367,500.
2,520,700c
1 , 899, 600.
2,28X,?00c

2, 623,^00c
2 , 500, 700.
2,^ 51, 200,
2, 883, 700.
3. 168, 900,
2,337**00.

S jftS L gS ,
130. 108, 355-

3,081,900o
2 , 66 ,500 o
2
3 , 5,
00 2000

2,821,100.
2,177,600o
2»927,300„
2,70b,200o
2,^99,600.
2 , 836, 100.
2,927,000.
2,0^,700.
, i . . ^ , 7y t
$31, 835, 950.

$ 2 . 849, 400.
2 . 283. 300.
2,197.885.
1.990.650.
1 . 927. 300.
1,829,050.
1,465,150.
1.960,500.
1,792,850.
1 . 442. 000.
2,580,250.
1 .6 5 2 . 0 0 .
0
$23, 970,335

ISSUE, REISSUE AND DESTRUCTION OF FEDERAL RESERVE NOTES SINCE
_________ OPENING OF BAUlt AS OF PECEMB R 31, 1927._________
Received from
Controller
FiT68
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands
Total .

Returned by Bank
To Agent

$ 134,580,000
129.640.000
118.800.000
7.200.000
10,400,000
1.800.000
2,800,000
$ 405,226,600

I

Total

22,412,000
40.095.000
41.736.000
3.895.000
5.480.000
1.044.000
2.922.000

156.992.000
169.738.000
160.535.000
11.095.000
15.880.000
2.844.000
5.722.000
saai' ffgRr
g

ISSUED TO BAMX

Fires
Tens
Twenties
Fifties
Hundreds
Fire Hundreds
Thousands
Total . .

Total

Fit for Use

New
130.380.000
128.120.000
116,560,000
6.925.000
9.740.000
1.321.000
2,
000,000
SS6.oi8.BW

I 21,497,000
36.850.000
40.405.000
3.205.000
5.200.000
641,000
2.455.000

$ 151,877,000
164.970.000
156.965.000
10.130.000
14.940.000
1.962.000
4.435.000
» «6S « S 6o6

DESTROYED AT WASHINGTON
Returned
By Agent
Fires
$ 4#260,000
2.545.000
Tens
1.020.000
Twenties
25.000
Fifties
30.000
Hundreds
none
Fire Hundreds
i
i
Thousands
Total . .1
<7,880,000

Returned by
Treasurer
$ 3,803,255
4,324,270
2,503,600
198,900
278,500
26,500
53,000
TH7T88,025
In hands of
Agent
December 31,1927

Fires
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands
Total . -




$

5,115,000
4.765.000
3.570.000
965.000
940.000
082.000
1.287.000
^lf,"5247000

Returned by
Minneapolis
$ 55,698,500
46,330,000
33,553,500
2.194.000
2.939.000
290.000
570.000
$141,573,666

Returned by
Other F.R.Bks.

Total

$ 52,638,180 I 116,399,935
105,488,510
52,289,240
50,341,300
87,418,400
1,993,200
4,411,100
2,447,500
5,695,000
162,000
478,500
271^000
894x000
$160,142,420 i 320,785,445

In Circulation
December 31, 1927
$ 13,065,065
19,386,490
27,811,600
1,823,900
3,765,000
439,500
ol9,000
Fee; 9io“ 555

fiscal agsrct

mottos

the Fiscal Af,««icy operated by uc for

Vniti.l Stetvs ftov^rnaeszt

showed a general expansion in its ssrriee dMring 1927 r i c t’ o~co?;tion of
. f b :£
Governaont cordon ryiU&ytions lyiioh n-- '.iAndled in another -'rwartsient end
r.
will be oow*<entod upon elsewhere in this Bopori*
Other operations consistint: of is-sues, red«»r:
>vions or exohanp.es *
of
various Governa».v.t s*.o»;ritlec, i c u i * ? treasury a v * . ; Seourities, re*
nld..;
ai.<*
doomed at tbis oi‘ ioo, or reeoived from ?©3t»casters after r^eKptiQn hy
f
them, umbering 17fc,91S piooos and amounted to C170,«52.822,50 as compared
with 85,568 pisces amounting to $80,771,000 in 1926.

Included in the fig*

ures for 1927 a c t c ?ooond liberty Loan Ronds which vvrc called for re*
r. fo
demotion on Sovdnther 15* Of these, 24,839 pieces totaling ;'SG,199,6oO
submitted in 8,7F.5 applications, were exchanged for other issues offered
by the Government prior to Hovesiber 15*

the greater pert of the <*'eonds,

mafcsring 69,899 in ooupon form, amounting to #14,679,250 and 17,989 in
♦

registered form amounting to $4,986,850 were submitted in 11,851 applica­
tions for redewption*
In June, the treasury Department Made publio announcement of its
willingness to purohase Second Liberty Loan bonds direct from individual
holders*

thirteen proposals from holders in this district offering $19,550

of this issue at not exceeding 100 1 0 2 v*cre finally accepted and gaid for*
Again in October and Bovenher additional imrohases anountin& to >1,173,500
submitted in 409 applications were *»ade at prioes not exceeding 100 0 2 *
the Agency also handled during 1927, 5,287 orders for the pur* .
ohase of Government seourities and 6,971 resales of Government securities
.totaling $92,746,110* Zn addition, either delivery or parent, or both,
washandlcd for banks and trust eos^anies on 888 transactions in Govern*
ment seourities amounting to $88,685,050*

there were also 897 transao*

tions of miscellaneous general market securities agrxesating $8,928,000*
Altogether, of these various transactions, there were 18,788 totaling
#165,*220,160 as compared with 10,905 transactions totaling 3129,682,200
in 1926, or an increase of 2QC over 192ft in the muriber of transactions




9$

handled*
Xnolut?ir»$ a'^ort term Government securities ahioh rare transforred by / d c , deliverer of 38,308 pieces totaling ^0,432,060 vms r<ade
.ri
on nira.aae and res&la transactions for other than our own account as
compared srtth 32,277

ces totaling un/,0*-?,350 in 1U26.

In addition,

on exchange transaction: such as denoitiir-ational exchange, t^e exchange
of coupon for r<.istereo securities, etc0, 30,999 pieces vrere delivered
2^
a&ountinr, to $23,961,550*
This A{v?v assisted in th& allot-*mt of e * V t r-ri^ri. r s of
icy
i:«
:
United States 0 T i r ; . n leaves dnrin£ 1cZ ? as con^-aref! *.it« three
o**nr«4
offerings during the preceding; year.

In such operations -^rinf: 1927,

16,572 individual subscriptions contained in 4,16(5 different applica­
tions wers received.

*.e amount allotted on these subscriptions was
!‘

1,578,100. During 1926, 7,950 individual subscription* contained in
492 applications rerc i\x»eivand *2 3 1 , 7 0 0 «as allotted.




JV7

HBLEHA BRAIOH
The operations of our branch are covered in a separate report hut
as comparisons with 1926 are made only in a few instances p
from Head Office Controller is perhaps desirable.
auditor at Helena since July
Cashiero

acme

oomaent

There has been no regular

1„ 1928 when l r Zimmerman was appointed
'*

The daily checks since that date have been made by the Cashier

and Mro Cutlerp Assistant Cashierr with some assistance from the Discount
Clerico This arrangement for an interne 1 check has been sati£ factory and
should continue so on the present volume of work®

This internal oheek is

augmented by t r examinations yearly by Head Office Controller and one
vo
examination by the Fed eral Heserve Examiners * On November 12 an examination
was m&de by your Controller and a satisfactory report given0 The element of
safety was given special consideration v/ith the result that additional pra>
teotion was thrown around the building by improvement of the night guarding
and grilles are to be plaoed over the windows o Money shipments have been
conveyed in automobiles owned by the officers and an armoured truck is now
being constructed for this purpose0
At the present time the Cheek Collection, Currency and Securities
Functions are the only ones required to any extent by the Montana banks®
Volume of discounts is almost nil0 the total advance being $210154.15 oa
December 51 ^ 1927 and represented accomodation to one baafco

Total earn-

lags for the year amounted to $100539*9? 0 Forty-five banks were accommodated
during the year through the discounting of lc
,664 notes amounting to $l0905P
000r
With the exception of earnings from discounts and reserve deficiency penalties
income is limited as the branoh has no authority

tg

deal in acceptances or

limited States securities which are the chief sources of revenue at Minneapolis Current expenses were $91-,608 0 and $6r?00 less than the total
10
for 1920« No proportion of the note printing costp expenses of the Federal
Reserve Board or any part of the closed bank expense attributed to Montana
banks is borne at Helena.

The Branch officers have made an earnest effort

to reduce expenses during the past yearp but it is doubtful if any re^
duotitti can be shown in the 1928 payroll after making the January J
i aoreases •




Practically every itsa in the expense olasaifioatioa for 192?

98

shows a lower total than in 1926*

Traveli < expense is approximately
rs

1^000 greater than in 1926 due to more frequent attendance at the various
district group meetings.

Tax rates have been advanced but no higher valua­

tion has been placed on the property.
1927 and $1,713*11 in 1926.

The Branch paid !1,893.05 taxes in
;

Oost of directors9 meetings has been redueed be-

cause of fewer meetings and the fact that a Helena nan replaced one of the
distant directors*

Printing and stationery expense has been lowered 25 par

cent from 1926 costs, although partly on account of reduced requirements.
Since November ve have been able to bring about a change in the classifica­
tion of the Brandi dailj balance wire to Minneapolis, which vill result in
lowering the Branch 1928 wire costs approximately f1,000.
Collection of non-cash items vsas heavier for city items but showed
a decrease in country items.

She number of city collections averages about

200 per month and the total collected in 1927 amounted to £2,143,000.

In

1926 collections made amounted to $857,000 and consisted of 1,999 items.
Country items collected in 1927 numbered 13,967 for *5,438,000 and 1,237
items amountine to =*280,000 were returned.

In 1926, 15,556 items were

oollected amounting to '*5,571,000 and 1,252 items amounting to .$325,000 were
returned.
2be volume of currency received m s considerably less in 1927 than
in 1926.

Shipments and deliveriee numbering 2,525 were made to member and

non-member banks and amounted to 114,417,000.
2,282 in number and $15,104,000 in amount.

In 1926 these shipments were

Receipts from country and city

banks totalled f17,749,000 one year ago, and ?14,216,000 in 1927.

The Branch

had also been carryinc too large a proportion of big bills and $500,000 of
80*s were exchanged for a like amount of 20»s some weeks ago.

The Agent

does not carry any Federal Beserve Notes at Helena as the supply held in the
Branch cash is sufficient.

Shipments are made from Minneapolis when re­

quested.
Checks handled in 1927 of country member and non-member banks were
1,828,834 in number and 4140,254,000, in comparison with 1,671,814 checks
amounting to t'128,827,000 in 1926.

Return items numbered 33>910 in 1927 and

36,986 in 1926.




99

C O m m i l V B FOHCTIONAL EXPEUSE REPORT

------ HELEHTMAHgf ------l

1926

1927
Average
Number
Of
Offioers
Cen'l. Overhead-Controllable
1.00
Gen'1• Overhaad-Non-Controll&blo
Provision of Space (less inoaae
•08
from banking house)
.05
Provision of Personnel
•30
General Service
Postage
Insurance
Failed Banks
•04
Loans, redisoounts and
aooeptances
•25
.09
Securities
Currency and coin
•26
Check Collection
•22
Kon-oash Collection
•17
Accounting
•10
Fisoal Ageney - All other
Leg*l
Auditing
•54
Bank relations
Bank e*aaination
Federal Reserve note issues
Statistical and Analytioal
GRAM) TOTAL
total eurrent expense
Total reimbursable expenditures
Stook of Supplies
aRASB TOTAL

2.90

Average
Number
of
Employees

Amount

t 8,960.20

Average
Number
of
Employees

Average
Number
of
Offioers

I 9,057.27
6,301.70

1.00

5,591.57
2*00
•08
8.28
•04
082
•56
3.02
9.17
1.79
4.20
.07
o20

30.23

6,679.69
753.84
12,915.59
5,466.59
5,196.48
567.28

.06
.06
.52

5,418.46
1,601.04
7,102.54
14,546«55
5,600.88
14,974.70
120.00
1,800.00
2,751.42
25.70
546.50
^
157.C7

.58
.11
.28
.24
.15
o09

1.04
•53
5.00
9*64
1.79
4.47
•07

.67

.17

$92,328.26

2.00
•52
10.56
.07

.02

-r

516.18
92,323.28

6,711.50
1,510.65
12,965.88
3,650.63
5,500.55
556.02
4,561.58
1,292.51
7,056.71.
15,869.22
5,757.52
15,610.44
540.44
1,826.00
5,195.64
17.75
512.75
120.94
144.26

3^.46 JM.We.20

3.38'

(91,808.10
■ •
•

Amount

*

#97,802.85
520.45
47.06#
t97.W6.20

♦Credit




100