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OOirrHOLLER’S HSPOHT m m a x L riservs bahk oj* mihheapoxjs IDfi THB TSAR 1 S 2 7, To the Directors Tfae results of our 1927 operations are offered la tbs 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 :.:u-'.bhly averages.*.......... 12 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 - - - - - - - - - 66fl9lOc658oOO 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,7700529o94 Due to foreign banks - - - - - - - - - - - - - - — 1380847o84 Non-member banks - Clearing account 43,739*46 Offioers9 checks 197 0090c 00 Federal Reserve drafts - - 31c000o00 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 900p998.89 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 130404o64 69-,777o93 715,935*16 862p789000 160473ol2 27,136037 38,233o91 76,996o94 Capital stock paid in 3,0093400o00 Surplus........ .............- ............. - 7,527g027o95 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:.la:iCo 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<j49 X00480T46ol5 $ HlotMoU Additions te Current Net Earnings - - • — - - Deductions t r m Current Net Earnings* 2% Reeerre for depreciation on, Buildings t Minneapolis Building -b — ---- . . . Selena Building lOjtf Reeerre on fixed machinery and equip ments Minneapolis Building - - - - - - - - Helena Building ------------- Furniture and Equipment --------All Other - - - 48.809.91 50665o68 20700o00 820006o38 1 p610 o90 100783o93 --------- 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 290oOf7oBl i FUDKRAL m i m w B M K OF lOTrSAi'GLI!; A’JD HBLKHA BRA'TCH STATBMSTf OP EAPJ'INGS, BCi^TSSS A*TD PROFIT A?!D LOSi: ACGOWT '.T... . T' ” l“" T'"Iimi^ Sarnings Current Expenses - ® - « • • m « o o o o u m #26,137,061o 10,072,060* « i»« Currant ^let Earnings* u ci o r d o u o o o i o o o o a o o * $16,065,001. ADDITIONS TO CURK3KT niST SAR‘M?I0S| Withdrawn from reserve for depreciation on. U« S* BondsAll 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 • • fi)«» o u t)<j u o o o - 4a) $ l,013,858o Furniture and Equipment(including $40,00^ for vault ir New York Life Building) 426,812. Reserve for possible losses * * • • • - • • • • • • -(b) 700,000* Reserve for depreciation on U* S* Bonds o » * . » « « * * » 146*915# Other Real Sstate - ?!ev; Building sites Expense » * * 0 * « « * * * *0COo4O7# Inoome o * o * * « « « « » « 350800* ?!et Expense • • • • • • - • • • • • • • • • 24,607. All othor 99,58$* TOTAL DEDUCTIONS WT4H',723V Set Deductions Het Earnings o co • o «* « a « o u c ) o « 3 « o o « • o o o distribution of *'et Barningss 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, $500,000. vrns transferred from surplus to reduce book value of building leaving a balance in surplus account of ^7,038,563. 1)1VXD .* DS PAtD SI o:i ORGA rI2ATX0?? «. BY YSARS x*lo 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 Tots,! ' o > 57 *719 o87 563,894*19 168,102®97 180,186*21 195r870o65 211*657.03 213-774©01 212,732o6S 202,827o98 193 559o46 107.609• 25. 180,726.61 2 3^8 ,660o 81' DETAIL STATSiiCT OF SURPLUS ACCOST SINCB ORCAIIIZATIOy | n m * D w a b e r 31, 1913 9 from Reserve for. Franohis^ Tax Sfereh 4, 1919 m to Surplus from Profit and *«o»s 4\sm 30 , 1919 H n ii D#*<tab#r 31, 1919 11 n « it Sm m 30, 1920 n t» n n December 31, 1920 •t it » n torn* so, 1 9 a « t » w H Dtliember 31, 1921 n « « II Dii«Bib«r 31, 1922 n w It « DftSsmber 31, 1923 n ti IT II IJaoember 31, 1924 n M II n December 31, 1925 tt m n H Dt*«ab«r 31, 1926 II n II m M > i r 81, 1927 m mmcs e* •» «*\« » •» o c.> et> <-3e. • at. e» * < Total «►•*»« t m it Dsoeaber 31, 1922 Additional franchise tax £aid for the years 1920 and 1921 « - * 452,423o36 December 31, 1927 ?rith&ra»m from surplus '5lo reduoe book value of building «* « - <°500o000o00 fialftnse la suxplus aooount December 31, 1927 ~ ca e» o n «9f I 37p500«00 6880871.32 688^6?lo62 904,357.40 lff249r399o04 lp609,24l*56 1,801aV06o54 323,12lo95 165p407©67 56p892el0 11r272®25 12c627o39 4,139o45 26,042*32 11,535o10 TT&ttytoSia 552*423.36 STATEMENT OF TOTAL FRANCHISE TAX PAID SINCE GRGAtflZATIOM Dosaaber 31, 1916, Trsnafer from Profit and Loss Difsabsr 31, 1920 * * * Jtms 80, 1111 * • • December 31, 1981 " ” ” , December 31# 1922 Transferred on aocount of underpayment years 1920 and 1921 D**«nbcr31, 1982 Transfer from iVoflt and Loss M II H BHiabsr 31, 1988 « « II 2>*««aber 81* 1994 n n ii Dtitobsr 31, 1986 « a « 0#8#mber 31, 198$ » 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 ffcr 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 ar.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£) wfci added to Surplus Account 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 par.fr.onts sinoe organisation 4,167,701.20 CHARGE AGAINST ACCUMULATE) SURPLUS After the closing of our btsoks oft Mftenber 31, 1927, a charge 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. ITet profit on U„ S securities sold “*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 & £05 , 511 ^ 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’GS OK EARNING ASSETS 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 5J6 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 ,1 5 1 ,706 .54— 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 fi’om resources originating outside of our District was $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 $43,300 less than in 192G„ The exchange of O3fl059,000 of Second Liberty Loan 4j$ 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^yo 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 3jjr per *«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 -hlw lowast •wera.fr© rats obtained since tho opening of tha bank« Ou.r income from every 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.’ilo of monthly 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 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 MINNEAPOLIS HELENA BRANCH ... i m ..... . ___ 1222___ $ 116,191*50 322,57^.06 23 ,22l*oIk 75.560.75 59 210c25 1,112.53 6,269036 26 .595-76 .>3 . 136.58 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) .-■1927.. $ 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 .5 6 l.8 U 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 . 0U8 . 7U6.15 33.597.38 2 .^6 1 .a CO’/BINED ___ 13£5_ 125 . 551 . 5U 375. 112. U3 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 arid Helena are }16,011o05 less than for 1926o Of this re 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 teXfrKHggS' 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 irlpS76057 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. 7re carry $1 ,200,000 of fire insurance on our building at a oost 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 fcsare not !*d wuoh suocee* in lowering the expense of nripting 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 :311st *e «ritte;3 off in the different department bud- * 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#8740or 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(ltt POSTAGE BOTODAPOLIS .. $ 55,134c.03, 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 in, the amount assumed at Minneapolis for this 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 ancJ from <n«K.ber banks a?<d the oost of haulinj; supplies 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 biore or less importance* 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*-e largest 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 £444000; 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«-30 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*or vauTb in Weir York Life Building) 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 'IMF M l M P B U t . M M * 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 ft fixed machinery ft equipment #1,730,065a37 Vault construction, including any additional struoture or foundation made necessary by vaulv ,and vault equipment . . 325,750.54 Fixed machinery ft Equipment $623,965.65* 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 ft Expenses} Architects . , . . . 148,027o79 Engineers 15,846000 Taxes . . . . . . . . . ............ 74,360o00 Maintenance , o . ..... ____________ 21,708o66 Cost of lew Building . . . . . . • . #2,65da7&9o59 Coot of building ft building site . . . #&,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<1,ri 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. fi Sq. Ft. ^ 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.......................... . $82,814097 Oooupied by F.R. Bank................... Rented.......... .................... Unoooupied............ .............. Total floor area in building.......... . 4700 Sq. Ft. pT Sq* Ft. sq0 Ft. 4700 Sq. Ft. Floor Spaoe: 27 BANK PREMISES EBPHSCIATIOK Minneapolis Charge-off of land - 1919 - - — 110 0 ,000,00 Charge-offs of building (including vault, but excluding fixed machinery and equipnent) to reduoe book value to estiaated replacement cost: Taxes on building during period of construction 192 2 ------ ----------- # 6,200*00 1923 ------ - - - ----- ----- 14,760,00 1924 64,390,00 # 74,350c00 Goat of maintenance during period of construction 1925 ...... ............... e 2,101o93 19g603o73 21,705o66 1924 - - ................... Charge-off of construction costs 1920 - - - ---------- -#100,000o00 192 1 - 5,381o40 1922 - - ................... 6,446o87 1983 .... .................. 20,381*04 1924 - ~ - ----- - - 219,316o89 1926 - - 30,463o84 1926 ............ ........ - 57,438.64 437,406,60 December 31, 1927 Transferred from surplus to reduoe book value of building- - Reserve for depredation on building 1925 36,814o40 1926 - ............... ... 32,616.86 1927 --------. . . . . 6,665<»63 Reserve for 1924 1926 1926 1927 depredation on fixed machinery end equipment ...................... ...... 12*814o73 - - - - - - - - - - - - ....... 52,396o£6 ------------------(e) 71,222.96 - - - - - - - - - - - ......... 62,005o36 Total depreciation on bank premises - Minneapolis 633,464o34 600,000o00 76,996o89 198,439o58 ♦1,408,900061 Helena Branch Charge-off of building (inoluding vault, but excluding fixed machinery and equipnent) to reduoe book value to estimated replacement eost 1920 ....................... - ............ 21,290©16 Reserve for depredation on building 1920 ............................... -66,447o49 1921 ............................. 1*893*2$ 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 'V. V.m Barbor Company, gives a rate of #5*69 per 100 gallons for 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 fJlp783,281o50 at the close of 1928 and 7/ith the •;500,000 reduction just allowed, is now t:lf283,281*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*e already have set up #71,331e26, our depreciation allowance for 1927 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 -p/ill be found in the accompanying tables. FDHHIITO? AND SgrCP&JJT The total expended during 1927 for furniture and machinery at Minneapolis and Helena '.vas $10,783<,93. 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 -air.ce 1916 but for the necessity of pay 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* CXir 1928 budget oalls for a totell expenditure of $27,872 for 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 thscb the most of our 1926 expense for equipment 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 v,ras included with our 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 vie pay #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 ftor direot servleo to our staff, 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 32 166 (4 ex*Help) 29 280 Helena Branch Fisoal Agenoy: Paid by Bank Reimbursable: Officers Employees Jan-.usrv I, 1927 83*45 294*45 35 36 16 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 jsr^o Xo50 2028 $ 20395o90 420o45 2*15 2021 I 30968o86 386o05 23o00 20651q98 22028 20640o52 o50 7o60 168o70 745027 o90 8o30 270oOO 782o85 1*00 66o27 333 040 70403o33 loOO 59o35 330o06 604O8o72 oIO 33o34 33034 1*00 15.98 641e70 3005418 *10 1 2o00 29o48 10625 10 59124o74 laOO Soil l0145o90 955o70 .35 5ol5 394o60 782*57 *81 11*93 362 o40 2P353012 o50 4o99 329o20 808,92 o30 17*49 137 o82 20456o84 o60 20*33 275.04 2*784*34 .88 83.84 21$*71 S0S51o53 o85 67,69 195*00 80955o44 *25 17*92 83,35 1,991 oOS *25 19 25 75*00 l0783o48 IcOO 17a47 791o70 2„414*02 loOO 19 o34 750*00 20542*27 *89 20*80 333*48 20747o89 loOO 14 o80 333*40 10854*42 loOO 8*70 583*40 1,478 85 loOO 7*87 541*70 l0238o00 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 »JSLd5ff 297o94 126071 o7S *55 385o02 77*57 111*28 177o30 a25 lcl2 100*00 157094 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 $ i00292o20 290o33 850589947 *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 officer9s 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 of. the proportion of Federal Beserve Board expenses we 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 Or xKT? 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: Salaries Msdioal Supplies Offioe Supplies All Other 1927 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 -------------------- Average Bomber Bsqployees 2 .0 1 2.15 2015 m .90 loOO - .82 1« 0 0 < ,10 1 .6 6 .90 1 .0 0 .1 0 .1 0 2 o0 0 2 o0 0 .48 .83 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 <,85 15.00 025 loOO lo04 loOO 023 o75 028 *83 <,66 068 086 *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) 61,312044 96,422o46 152,185080 17,838o71 79,651.06 33 812 29 34,792.49 115,591o68 200337.98 270248o39 4X0394oS3 lU7074lo29 270958o64 48842?092 43,903.86 7,828.91 24,140.25 6,232.12 30180o44 250609 o62 17,833 11 983D443099 2.25 23.39 7094 64.28 2.34 22.69 8064 64c02 8o29 27o90 8.85 73.42 22.35 5o47 9012 19.32 66.43 18099 18 48 36,10 7.33 d60 <,73 3o72 5Q33 292o42 29o06 5064 4.74 36<,74 7.78 4.49 .7 ? 3.89 4.05 j& n 302o17 336,24 BzpenCM Expenses 2 1 .6 8 2 1 .6 6 72.98 19099 19,84 12.24 9*0* 78041 20.99 21o50 13,90 9.59 044 o71 3o8L s 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_ 0 Somber of Officers 122Z___ISIS__ 1225. 64,295.51 $ 55,247.60 95,526.65 89,391o57 159,290o24 145,486,99 19,020.31 20,268,00 77,998.70 82,675.76 34,436 96 32,896 33 270027,61 33,7Slo57 137,385.24 163o674.01 17,677o02 19,949.72 16c233o91 14o286o28 45,336o00 460335o34 1170616o95 I25,X4wo25 270370o23 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 7p242049 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 983P443099 5,378 48 60iai,rr 6,883 60 1 0066.48 $ 989,918 66 $ 1,031,008 53 39 gKEI&AL CUB, Activities ox* -the Club have boon maintain'd alciJ£ :uch ,?*r.ilar iin 8 to vhose of 1926, The spirit shown ‘y the employees oach successive year se'.n.n .s a*- i*.i?rov<;. e.nt over that of former years. At the present tirm the Club ha a a 100 pin* e**at rA^rtbersidp* There has been socto broadening educational feature a'u't additional amseiiients have been provided in order that wer/ richer of the Cl aged to take part in somo '.'ranch of study or recreation. ruif.hi he encour This is as true of the women of the bank as of the {ten. The reduoed number of requests for l^ave of absence on ac 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 raar.y .voko:,. -caking part i.*> Athletics as compared iv5tl* tho year previews* As further evidence tt»at the cooperative spirit ooaliitjes, over one hundred and fifty dolls were a( r;ain supplied by the officers and dressed by the young ladies of 5l:e banK 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 Vielfare Bouse Coss&iittee Educational Ref.mdg Contingencies Less dues # 535*00 200o00 2,13So00 300*00 150c00 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 $6,745047, 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 Tfeiit expenses decreased for 1927 from the 1926 total 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!«ter4vjace expense increased slightly during 1927 over the 1926 total. The costa vere $3,932.66 and £3,710.62, respectively. (Che expense of maintaining Files and Old Records decreased from 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 ch:u.i-e in filing methods. 8teno.£r&jt;hic Unit expense for 1927 was .f18,698.39 as compared 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 $ 802o09 $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 3C26 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 NioriEer o? Number of Baployees >WW>hJ>WWW»II.I »*■ tn. » Expense<««>■■«Employees *■« ••••*.«.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.a :"'HXC 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 anft the information given 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 De>> 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®761e000o In 1926 60O86 bills were received amounting te f 83o656oOO0~ Average daily amount of acceptances held in 132? was $10^560*000 in comparison with an average of $11?4280OQO 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 andt the total value 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 §180p40S0000 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*1OO0OOO 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 January T U T ---- « g0W7447ol3 4o9020343oO5 February 476 40311p952o75 March 417 50S80P418o45 April 266 40825p933o72 May 400 501180420o00 June 544 20571P298O94 July 280 2p4210136o53 265 August 5*705^566*86 September 631 U d364d960o47 October 850 November 100420.454o86 974 December 1020 120572fi549o14 Total SSl4 I YfJBBSJBSi'M Paper Purchased in Open Market Amount Noo of Piooes ...W ----- I 4 3 ’8 5 ^ T 041 4 356,S94o51 303 4 p405 p309 084 378 6,550,367083 442 6n122o722(,01 345 6D263p950e24 384 4P291r193088 366 6P803P555ol2 599 3,912,166.35 383 4P844n649o60 392 487 4P705P593078 540 6fli70fi059©15 1’ Paper Purchased from other P0 TCo Banks Paper Purchased from other F. R. Banks ---------- ---- 2527---------------- *------------ 1528----- ---------Amount NOo of Pieces I 75ti0050o00 January - T T ” 1 lOOpOOOoOO February 53 March 0OOoOOO»QO 24 5c719p105o6l April 226 600n000 oOO May 12 600p00Cu00 June 25 700.000o00 July 19 August i I„8000196o40 September 99 50401D285«01 October 347 4p7000214o85 232 November December ln000o209o91 49 Total n i l T^^VOlToT^ Hoc of Pieces ( « 1 Amount V 10 027p167c83 519 mm ) 2 p255o921o40 180 500p059o40 32 20815097Qo51 118 2p000p560©12 100 l;;8000216oll 93 ln200P069o98 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 ?,ND ACCEPTANCES FJHCTION. (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 4,250o02 #6,637o46 5ol5 5o79 # 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 o35 035 #2,367.50 2,367«,50 14,735 00 | 394,53 5.86 5o42 Employees salaries Other expense Total expense $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 $ 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 122 7*xk* 275 123 129 130 130 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 1927 788 564 Amount Hadiseoonted la V s 1926 671 1925 959 881 1,251 1,112 560 709 522 1,152 1 . 2H0 l.UOfc i.H o i 1 ,5 12 1,060 6H6 l fU ^ I.6U 7 482 940 1,102 967. i o souo 12 .51U 11,492 1,211 90S 11.163 15.253 19.740 13.35S 14.63? 24,274 10,454 3.398 I*5*? 16.25U 16,406 11.59* 10,994 16.777 27.755 27.057 30.359 26,311 12.521 $1U1.0J1 $221,888 8,222 1.50 2 1 , 15* 1.331 gU2 2S2 513 6fc6 _ 66U 1 & 6,655 15.688 8,110 SBZ 2,485 !' 2,511 I .665 7.881 4,811 *{.387 §.238 16,1*85 11,628 13.615 11.278 - 2*122 ♦92.374 7 om *s 0? ^ D I 8C00STS Ho. Pieces Rediscounted 1927 1926 1925 192U 1923 1922 1921 1920 2.930 '3,006 ’ 4,385 2,928 1927 1926 19 ^ 192& 1923 1922 19a 1920 South Dakota 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 :?orth Dakota $12U,1«?;,53S.05 2Q3.958.580.27 73.903.670.18 6U.093,222.03 2 3 2 ,202 ,3 7 7 .6 5 97.456,500.97 474.33s.340.56 735.151.853-61 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 1 .9 3 7.472*950,36 1 7 .9 9 7 .3 1 7 .3 8 28.370.089.12 6 5 .4 9 8 .9 7 7 .1 5 53.592.37fc.96 io,cfeo 12,51** 11.592 27.413 35.392 *7.933 104,234 73.275 Himmtlii Hontwua ■iigfttl PfiiWtft____ South Dakota $ 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 ,0 5 1 ,926 *! i93.oa4,«n.; 730,662.0*. 953.391.763. 2*214.195.91 2,079.395.33 3 . 5 8 0 , 6 3 0 .4 0 1 0 ,3 5 2 ^ 1 1 .3 8 2,715.870.41 1 228 878.58 8,181.334.45 20.39t.l*9-10 1 1 .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 Salaries - Officers Salaries - Employees Traveling Expense Printing, Stationery and Office Supplies Telephone and telegraph Legal Fees • Outride Counsel .All Other Average number of Officers Average susbor of £saploy®es 1927 1926 17„531o28 47,117*77 21,711*14 670o14 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 £ 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)}+.U2 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 CY.^RH.%AX‘ 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. U6 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 2C0.20 939.75 358,1* 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 ft**‘’OV 3.00 2^:50 15 K 63 68.75 H6.55 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 15 362,20 166,0? 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 lgr tie. 270 19 520 0* 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 1*25.72 I3 * ,l° 166.77 12 A S 1,3 5 9 .12 12 25 7.72 l , l * e OU 635*36 kjao 75*1° RECOVERIES 33765 725.26 266. 0* 337.65 725.26 266, 01* 5.583.R2 1,175,*9 66321* “*97 79 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*8 5 .5 1 *85.51 TS12T 19 3 6 6 83 5.96 l»»3oOU in A0DBB88 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 llandan 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 CVI 0 L 0 8 SD BASK EXPENSE TRAVBLINQ* OVERHEAD maintkxabcb 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 TJfliT. 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 TOTAL 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 1 ,112.86 9 . 107.20 5.420.67 144.39 5.S57.52 223.56 288,54 134.20 319.7*» SES 25 00 310.66 819.10 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 (m s s & j m sxpsasa 391.76 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 88.04 41.59 205.85 3,652,04 1,837.46 2195.37 227.94 1,028.01 725.73 462.73 265.19 573.57 2 ,2 5 6 .3 3 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 ft 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 wXZPS9SS SSSSSSmmSSSmSSm 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 *10 5 .7 1 181.15 68^-50 722.05 26.383.5Jt 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 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.ItU 23.333.5* 9.8HS.75 150.79 881.22 25-55 721.75 1 .1 2 9 . 5 , 5,886.Wl 0 1.363.08 t 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’e national Bade 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 VJCFKSSB 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 jgM M APPffffSS Absarokee Baker Ballantine Belt Big Sandy Big Sandy Billings Broadview Browning Garlyle Oerter Gharlo Chester Clyde Baxk Oolisnibtte 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 '47s. 29 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. 01* 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 2iJiS 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 Ba 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 > 4,1*73.55 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 U10 .I 5 lUO.97 63.7s 115.69 276.51* 23.M8 -.521.75 90U.39 109.05 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 1*55.26 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 ,061*.08 6,655.08 3.339.3'* 2.623-23 3.309. .1 1 ,669. & 1,1*73.21 10,895.66 31*7.5=' 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'* 2,625.23 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 I5.7i5.i9 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 ,0 1 6 . 6 5 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 II laoltid— 13000. M e a n t first rospaoslQA of w M o h $1500. vaa n o o v m d . 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 Moataat lis.696.iB 2Ul.532.05 iue,898.oa U9.O86.5U 8 7 ,5 0 6 . 0 6 ctmssucnr 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 aiaou.:fced to i>198,106,000 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 fame* 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* This officers of this bank have no 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 cost, of these items a 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 uleafcer 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 l0O88 925 1,763 10013 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 20fl644 191,068 Total §igB U ; m Silver Coin Shipped t« Member and Non-Member Banks Minneapolis Helena feraneh fiofclbXned y "" W $W 5 *— 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 First Vfclf 192? #18o245o420 2O«32607O5 Seocud ’!c\lf 192? Total 1927 0 96o267o90OoOO 102 o9&10450©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 18ft208»458 91^554x>500oOO .96fl341»400«00 5nfiOB®o98n8Bf ’onihly tiTor^go | 209$9*309 0 16n607o991<>00 umber of Bcgjloyoos First ifclf 1927 Sooond m l f 1927 Total 1927 19 ©04 17*29 Monthly average First ICalf 1926 Sooond Half 1926 Toto.l 1926 22ol4 20*21 Hoathly average Eoployoes Salaries Offioors Salaries Btokbor of Offioore Amount *80 oSO # 62f<»02 825*02 $1V*5JT®W $ 187o50 1*916©62 1.660o08 0?? ,60 297*22 Total Expense Other Expense $ 16,451of9 140422o19 s "sfimm t2,301o80 20245o64 Cl9,5T8o41 16667©73 •JWVSBTTK § 2,672.8* 6 878©94 § 3,020.51 17,729.61 17(,340.88 ^ &ii){>$Vo,89 '20163o22 2ft524o53 £20,854.46 21.518.29 § f : 3,530o81 2,922©52 390©65 com *‘umbor of ooiaa reoeired saad litmber of oousted Amount on •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*2r426.00 912r790 2esc798„85 Fitfst Half 1926 6r579pS88 Sooond Talf 1926 4»4S3,5S8 Total 1926 Monthly ^rorago n r ,759 $.1|>8S£,7£4.00 1,656.,8 11.0 0 $ E90r734oC8 loie 10.6 1.20 ias S&ployeos salaries Other M l Total Expanse 01,082.81 1,04*.1* 883,9* 1,297.74 '%n b i $11,976.46 2.846.92 ^ssor 178.47 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 3?R B4FXS S? qr*HB FiDgRAL gaSBCTl 72C3IPTS Jtobs *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 $ .1 0 7 . 1 5 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 "’roai 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 1 7 8 ,959,0 62 150.W5.955 1*7.591.375 113.325.000 132.789.000 6fc.332.000 .170.9SU 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 •ffljbfr foafci To gon-"amber Brnka 116.U7S 131.691 155.158 MO, 5 0 0 1U5.100 1S7,U»»0 220,V^O 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 2 0 ,6 1 3 .3 7 ? 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 1 7 . 0 0 0 8 3 .2 9 6 . 0 0 0 7 8 .6 1 6 . 0 0 0 Toral si-npriaars TOTAL T O i i m 332.800 557.5U0 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 1.020.0?0 3><0,000 0221 122L JLSSi $ 16.372.369 1 1 2 .6 2 9 . 3 5 6 15.295.1*6 15.6^9,^92 1 5 .9 0 0 , n 6 1 6 .9 2 1 . 9 2 6 17.6U3.32!> 17,*>3,2S5 16.3H8.595 16.951.U22 1 7 ,8 1 5 . 5 5 2 1Q.080.060 15,551,t o 1 2 .8 3 2 .lW 15.355.320 16.678,918 1 5 .6 3 0 , 6 2 9 15.19S,5''S lS.059.ai 1 6 ,117.1*5 16,393.93* I6 .i3 2 .7 s0 1 5 ,1 8 6 , - 9 6 5 17.6 0 S . 6 1 6 filSS.i0 6 .3 5 U 18 9 ,5 5 6 ,^ 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* '.i9 2 .O5 6 . a 2 .3L9S.6 10,687,177 ,3 9 0 , 0 7 4 1 U,7 6 0 , 7 2 0 15.291.u7 1U.Ua1.261 15;220,225 i5 .5 S7 .95 S 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 1 7 2 .550 .0 03 lU0 .6 2 0 .8 U3 1 0 7 ,1 6 ^ , 0 0 0 9 9 ,3 1 6 . 0 0 0 78,996,000 CSJ 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 Jan*, 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 31,000 9«.900 *>9,200 208,too *5,*oc Dallas San Trsaoieca *98.200 Ibtal 3*c. 18,900 171.200 13,500 *5.5°0 16,000 ' s r ML Js& J&mmi 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,>100 £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 12,600 17.000 58,900 62,900 11,300 1*,600 Claraland *3,000 50,500 67,000 Blebmond 11,000 3,700 8,100 Atlanta 2*,200 19,000 18,300 Chios 777.100 55*.*00 625,100 St. Louie 27.200 15.*00 26.800 Kansas City 112,900 93.*00 115,600 Dallae 15.100 7,800 9,900 San rranel.ca^aUSSZ__ 138uiS 2__ ISSJBO Boston Sew Tork SSPUdelphia Shipped 21.000 12,000 22,000 J&59. 1*,100 71,600 13,700 55,500 9,100 13,000 630.600 18.600 107,200 9,* » l6^.*00 25,200 83,200 19,200 *3,000 8,100 3*,200 60*,600 22,600 98,200 fo.SOO llg.M O Jaaa. 25.300 107,800 22,000 102,000 12.900 *0,500 900,700 29.M 0 156,600 12,*00 2**-«0 JtSz. 35.000 159.300 17.500 >12,000 11.500 JS&i 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 JB/ti 2*1,600 27,200 98,600 128.700 22.900 28,800 9*,000 150,700 11,500 13,100 25.700 37,200 8*7.500 1,2*8.000 28,300 38,000 131,800 210,200 1J,*00 15,300 208.000 2*».<P0 .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 *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 J&U 29.600 135.200 31.900 135.600 11.300 27.900 9*,100 20,100 21,000 S :S 78.300 7.900 .8 : 3 38.900 176.900 18,*00 2SI.700 10.900 303.000 1.997.200 2JO.50O 9 .0 0 0 12.000 50*000 27.300 996,700 20,900 728.900 •S B i5.*oo srMSBL U6.100 10,800 JSjffiL S S i o .t o Io o o 265,300 v dm 090.300 2J99400 32 9 .6OO 1,91*.T00 Zl.*6*,200 -JteT. JBssl 82,*00 ■ JESfcfij 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. (Die cost of h&ndliA?, per thousand durir.; 1927 was £2.92 compiled vith £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, ar.d lessening the output per day per operator tern?orarily* 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, SA1ABIFS A 2 * D O W E EXFBl’Srs. -------------------------------- m f .r T § H --------------------------------------(T£ix£ieapolis) First half 1927 Second hd.lt 192? (Total 1927 :^onthl;r average First half 1926 Second half 1926 fotal 1926 Monthly average !teber of Coupons _ Handled Kumber of Employees 459,532 453,577 9SFJUV 1.56 1.93 76,926 465,322 467,150 m ; m 77,706 1.58 1*70 Bn,:loyees Salaries Other Expanse fotal Expense 1,148.49 1,149*64 7*3*05 158.21 237.94 #1,306.70 1,387.58 1,65?.21* t191.51 #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. Stoe volume of entries passir.., through the general ledger i» 1927 amounted to 125,202 or 25,000 more entries than were handled in 192$. This Increase was largely the result of the icasty Cashier's checks necessary in making redemptions of Government securities. Meeber bank ledgers also carried more entries duriiH*, the year, 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 1.57 i*eo 850.78 34,686*50 4*713*67 K»5.W 5*27 5*19 4*40 # 3*93 4U,flM3t • •6,109*69 4*446*16 89,&4*84 * 892.60 #3,922*34 3*667*36 ^T^RRF*5F # 881.84 # 783*36 f 5,417.86 9 Mcnthly average 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 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 $1600Q0,000 and the percentage against da* 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 5809 per cant cm Vovenber 230 1927* Tor 1927 the hi^h 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 $4407000000 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 $2o126s000 advances to member beaks. Less thaa $20o0000000 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 4Oft of the FedU* eral Reserve Hotes outstanding* On December 31t the Agent^a Settlement Fund was $33,000,000 or a decrease of $130000.000 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,O2OoOO0 la comparison with $63,5660000 held oa Dec«oiber 3io 1926o The highest point ear deposits reached was $6&(?7S90000o 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 ’ •* 1 9 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» IS * 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 $56,686,133<,5$ Lowest Point Heirber Bank Reservos (Aprc25) $4,971,754*61 (r*y 31) (June 3) £42,606,590*29 .$45,505,455.89 'Hay 31) 537,334,347,20 68 gPA.TBM.sm o? xmsrmsn ?ir»t U U r t y Loan 4fc Xoada Tourth ttb«rtjr Loan 4 & Bond* freftsvpy Votes Series A 0<* So frtan»7 Sends Oo So Coarereion Beals Uo So Conversion Bonds Vo S t) Bftaasa Sonde XSo S* Panama Bonds held motors. 31. Maturity Z&t*rM« 1932-1947 1923-1938 19301932 1944-1954 1946 194? 1961 1S36-1938 4| g 4 3$ 4 . 5 3 '3 2 1927. Ament $ 786,200. 3,431,300. 30O58075O. 1650900« 30200o 1110600o 500o 260, Participation la federal Beserre Sjrstaa Special iavestoe&t aeooo&t* Uo So Securities----------- ---------------- 1603428000o foul TJ. S. SamrittM - ------.----------------------- $ 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 ter Sack Oold §014 Sold Cold Coin Certificates Settlement ?&nA Redemption *.*san& fotal C-old Said by 3aafc ------ 12SZ I2ai I 3,5150S?5 o 1,536,500 139830,518„ ■JUBBiMLt f; 3#223,345o 3,650,500. 20,483,291. -SJOMk830, ^ 3 930'3o84 S2904290966o geld by m i G-eld Sold Sold Cold Cola Certificates witfc :•» r-e Board Bedecr.tioa 'Sxa& Total 0*11 *ith to 7U Agent - - CcsS^ae* >©11 folding* - - - — US* i: 3455,000 10,712,000,, 330OOOvOOO. $ 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 df> fund of National Banks was 13,086 for 1927 totaling $9,636,000. 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 cure forwarded to us and relayed 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 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* 2.89 3<,00 Monthly average $ Other Expense Total Expense $1,734.92 l,965o96 *1,621. 7Q 1.877.28 ITS7SGSM #5,356,62 5.848.24 iTllW.88 # 308,41 * 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 $ * 296.57 I Baployees Salaries 237.66 699.99 684.23 CODING UNIT Number of Boployees First Balf 1927 Seoond Half 1927 lo54 1,16 Monthly average First Balf 1926 Seoond Half 1926 Total 1926 Monthly average 1,72 1*62 Employees Salaries fl,069c89 $ 4,43 ~X 821*43 i i.i'i 5 f 161o78 Total Expense Other Expense ,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 $ ■I 1.17 ( 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 9r751 wordso The total ,oost of the Telegraph unit for 1927 was §150051o89 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 $2^602096 for 1927 and §2<,331ol9 for 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*347046 for 1926a a deorease of $l,669o22<, Tho expense 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 Motttii 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,fell 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. 11,812 7*907 8,492 4,466 4,347 6,767 6,611 8,923 17,665 20,967 16,273 12,183 Country Collections Security Collections 4926 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 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 January February March April May June July August September October Bovenber December Total Country Collections Total Collections 1927 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 m g E ^ mm<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. iiBar 8spt< Osfc* Total At . by Months Ast. of Items on Mpls+Banks 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 225,670,207.69 186,978,196.10 252.766.490.01 217.056.664.17 209,629.487.64 257.851.856.66 220,898,227.89 280,645,649.23 261,950,672.87 502.966.647.66 286.114.708.02 265.769.886.18 241,806,625*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 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 January February March April Hay Jana July August September October Hovember December Daily Avareg* Humber Bally Average Humber of Return Items ot Transit Letters fr»nt „ ..IWBMt 192? 12^ 2? I 123 1927 1926 i**o 1^25 ]f 6 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 1298 m i 1800 130 s 1927 1*5 1 2k 1926 IT 22 21 16 29 19 30 *2 36 3** 27 23 27 21 2k 25 27 26 26 fia to iMfc Ik *£ *9 3? 32 3X 23 52 7 2 .3 1 5 77.676 79.17* 78.3*3 79.835 7H.706 7 6 .2 1 6 71.002 6 7 .0 W 73.816 77.*23 25 27 *8 67 5368 5508 *560 5% 10 27 5690 1<&2 *9 2 1 !2g 1*2 6 H$19 1*87 |H>35 *9 12 5* m STio 5^75 5129 5117 8 O. 3 0 5 76.936 85.305 80.&8 *982 *920 5,895 5*35 5§a 72.530 76.833 *689 5375 Dally Average Oat af Dally Av. Ho. Banks Town Items Missent Remitting In Other £ w 3* .70 0 77.996 P *0 *9 52. 51 . W 65.339 117 1 27 5? 2** & S 1256 1686 Ifeg ?406 29 33 Daily Average All Dally At .Trans.Items Dally Average Somber Other Items Sent Sent Direct hy Oar cdf Items Per Person JWwfrfT Bfttfct 19261927 1927 192& n r 1322 1383 172 6 25 25 31 25 MIHNHAPGLIS OHLT 1927 306 310 29^ 290 312 Daily AVo HOo Drafts Received in Other 952 985 10S6 110 6 10(fe 10*6 lOfil 1119 1028 1156 11S8 10 6 * 95* Ul< 1 <m m 993 Dally Average Hou&~ Star, fs rtu rttftt tfift ■fflfcLJtesfcp —IgEJ3LJtolfiZSft! 1926 1926 1927 1926 1?27 306 3U6 329 313 316 319 316 3H6 3% 3(* 3I& 328 3<U 272 m \oo 291 221 291 309 310 338 TT 289 278 285 282 969 992 979 971 292 300 296 283 906 1026 10** 81 82 80 81 78 79 77 $ 76 75 T5 12. 295 8A 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 mAmrfnr TO o m EC40U H U M I ^ O f , 3 * m . « 1 9 .M . 1U .29 * 9 u r . 8 J f r 4 M t t 3 » . S M m K o l . l.m.fe* ^ f 9 r 9 i.*5#.T5T 77,*«,i*9.to 1.338.55 73.7&,T0e.75 73.T39.U2.65 S . 3 a.HM,m.T2 ? * • 3 ® E ‘ 2 S ’ 2 * O ? » 3 w » > 8 * « « | 3 9 B » 8 O L sol •rtW n j « a i » M 8 . w 3,*5*.*T5 i a M n - s . f i e , 7 8 7 . 2 3 z l i ^ , 2 a o . 2 , 1 6 B . .> I . * 2 1 , 9 9 7 y i 9 m 0 3 * 8 .9 9 0 .2 1 o 7 6 K l R . 9 9 9 i .2 * 7 ^ . o o 81,1 j * i***t®j i®72 21.38S.1 g a . M B . S S l . * l t95T.H6.895.zr 3 * . U M . f o z . i T z . o ♦255.796.7H».23 1 9 1 . u 3 .6 3.17* 5 1 9 5 . 3.1*2,290.73 2 9 ^ . 1 5 4 2 9 0 . M . « 5 6 3 .7 6 M . 1 t » ?:§? , 2 * 1 . 0 1 6 .0 2 t C W if-! a , m 7 ,«0 ,U 5 .Q 7.5^,307.08 6.582.760.03 7,898,160.7> . g 0 9 6 R 6.660.502.02 5,663.236.53 3 190.035.35 235. 237,® 228.6fc.82 3 2,106 2.859 3T45i » 254 ,7 2 6 .4 5 ‘».3T3,lft.» 3,M3.0*.Q| W . n 93.8*10 1 .0 3 9 | 1 C7.985. 8SI.23 $ 79.*18,074,,60 M a i fetal i t M ................ U 5 6 M . m M 2 M .7 3 .6 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 0 » o 1 6 ,1 7 6 .9 9 7 ptM5A0J.J1k.T0 M T 0 19(i90l,399.si s . X 2 8 , o e 9 9 » 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 of. Ueros handled by Months during 1927. with Totals for 1923, 192H, 1925, 1926 and 192 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 ■SfiSL 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 f ,818 7 9 .0 5 2 7 2 .Hu n . oo* *» ,iu 95.610 8S.H97 81-872 881t1 0 i Amount Wo. Amount 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 TOTAL FOR 1927 HOo 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 FOB 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 .6 5 1 .2 2 b 27*122 3.U12.138 HELENA BRANCH REPORT OF THIS TRANSIT DEPAHTliEHf FOR TUB YEAR 1927 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 tJs 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 Drafts on frs 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 oi* tj.S. 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 llfOOO 2,633,000 » 1,303,000 - 2,322,000 (BAND TOTAL OF AM0T7IT8 » $428,660,000 GRAND TOTAL OF ZTSMS 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 . 82 FEDERAL RESERVE AOMTT S OFFICf (MITOfEAPOLX8 OILT) The unites of work u s l p w d tgr tbi Federal Reeerve Board9• Functional 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 tfe #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 t 282*50 *65 .85 $2,252*50 9*92 9*58 Bnployees Salaries ’IT W E I T 3,717*65 wnm.Tr 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 £ 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 $ Total ‘,1,798.8# 1,860.91 ?5,8W.H 68.98 $ 211.01 $ 279.92 First half 1926 Seoond half 1926 Total 1926 -I 350.00 494*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 $ 70.99 984.71 182.96 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 Jfumber of Officers 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 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 *s nod Hi 9t 2|*y7»8§ 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 <,386 150 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 $337*50 for the year, ill ^ the oritlcleafele paper contained in the report* of examination of hades that harrow, with the exception of Montana banka, was listed alphabetically for the Discount Department® Bfifflrtt rf pf g*»tt Mipflrcr iMfa NOo of reports of examination received from the varioni State Banking Pepartaents in the Ilnth District of State member hanks examined independently by them0» 21 All reports of examinations and credit investigations made fey federal Reserve Bxaminers ef state hanks in the Hiath District vero typewritten in this office and en* 80$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 60000 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<=>27 100,000 6-1047 100,000 ‘1 ^ 17^27 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 !*ee Heights 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 tgr Far* ft Mer. 8tate Baiik, BrMtonrldfi) Firet Batlonal Beak Brloelyn, Han* 18 (Absorbed tar Stato Bank of Brioelyn) *iret Bational Bank Belt, Moat* 20 (Abeorbod Igr Faraere ft Miners State Beak, Bolt) First Bational Bank Balarille, Moat* 20 (AfesoylM Iflr Faraere State Beak, Balarille) City Satioaal Bark Linton, V* 0* 21 (Absorbed by Peoples State Beak, Linton) U n 8took Batlonal Bank Mettlnger, B* D* 80 (Absorbed bgr Adaas Oouaty 8tato Bank, Brttinger) 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 bgr Aaerloaa Batioaal Baak9 St/Cloud) 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 fcy First Batlonal Bank, Aberdeen) 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 lay Security Mational Bank, Hope) 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, ?.;inn* 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 BA1IICS THAT HAVE HOT AS YET SflRRENDERH) THEIR STOCK IN ---------- — m m a a s n m m m w ---------Date 4-26 =>27 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 TJfc to June 30P 1927 printing costs were on a basis of $86o60 per 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 |8O0OOOo 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 |4f7000000 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 e21 Officers Salaries $ 600<>00 667 o51 ( 4 ioSfffoW $ lOOoOO $ 154©98 $ i 749c90 848o60 V 066 088 <?• § 153*21 Total Expense Other Expense o55 1 668o50 * 26o96 26028 o93 10191*24 # lP869o74 'W 3 S 105*62 600oOO o26 | o25 600c0O $ rjswaw # litcaber of Employees Employees Salaries 4,43 21o04 21067 ri“% O T V $ lp296046 l»884o98 # mX 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 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 330.000 430.000 12,500 64,000 #10,886,000 15.276.000 12.970.000 330.000 430.000 12,600 54,000 37 06 33 o3 lo2 204 ol .1 IW M # 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 04 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^ lTR3TrC^£ 1 5 0 ^ 15570^ 1920 ■50# 33.2 33«8 lc4 2.4 o2 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 .3 6 0 . 0 0 0 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 .7 8 5 . 0 0 0 5 .6 7 0 . 0 0 0 2 .6 7 0 . 0 0 0 4.920.000 *3 9 .4 5 0 ,0 0 0 . $3 9 ,2 6 5 ,0 0 0 , 1 200.000 3 ,1 3 0 , 0 0 0 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 .9 ^ , 5 0 0 . 3,880,000. 3 .3 N0 .0 0 0 . 2 .5 9 5 .0 0 0 . 3 .3 10 .000 . U,210,000, 7.*i40.000. 2 2.090.000. 3.505.000. 2.705.000. 2 ^ 5, 000. 3 .1 2 5 .0 0 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 ,0 1 1 ,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*0 . 335. 3 .263 .090. 3 . 030, 695. 3 ,1 1 2 2 ,2 6 5 . 3 . 2©».5554 3.517.300. 2,416,000. 3 .3 1 0 ,3 5 0 . 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 19X8 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, 2609000o 13 J k ? , 000o 9 , 980, 00Go ^2, 230, 000. 57,x 5o,ooo 0 39, 990, 000. AT fASHTNffjftff 3 m2 S1 m 2, ^ 3, ^ 0* fXxe9,8oo 2 ,^0 2 ,5000 1,808,5000 2 ,XT0 s000o 1 , 906, 300o 2 , 21*0 , 200* 2 , 208, 200* 3 , 503. 000. 3,083,300c 1,gT 2 .S00o 2, 363,0000 2, 606, 800. X,803, 500o 2 ,1 2 1 ,600o X*937.600o X, 612, 200o 2 , 7^2 , 700. 2 ,3 5 6 ,1 1 0 0 . 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 *77 118 0 5 * $ 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 ,2 66 ,500 o 3 ,00 5 ,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' gffgRr 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 ii 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.ifcb t’:£ o~co?;tion of Governaont cordon ryiU&ytions lyiioh nr-.- '.iAndled in another -'rwartsient end 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, includi.*.?; treasury aavi*..<;* Seourities, re* doomed at tbis oi‘fioo, or reeoived from ?©3t»casters after r^eKptiQn hy 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 arc. tfco ?ooond liberty Loan Ronds which vvrc called for re* 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 /.drci, deliverer of 38,308 pieces totaling ^0,432,060 vms r<ade 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<2.^istereo securities, etc0, 30,999 pieces vrere delivered a&ountinr, to $23,961,550* This A{v?vicy assisted in th& allot-*mt of ei*:V«t r-ri^ri. r:s of United States 0oT*i*rn;r.«n4 leaves dnrin£ 1cZ ? as con^-aref! *.it« three 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 tvro examinations yearly by Head Office Controller and one 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 $l0905P000r 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-,608 010 and $6r?00 less than the total 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* Travelir<s expense is approximately 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 ------ HELEHTMAHgfl------- 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