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CONTROLLERS REPORT
FEDERAL RESERVE B A M OF MIUEEAPOLIS

To the DIrectoT6i<~
In the Annual heport herewith offeredt we have follow*
ed the same general plan used in presenting the facte and figures
compiled for the previous year.,

Somp of the information has been

giver, in consolidated form making it unnecessary to refer to
former reports..
Results over the past year have been satisfactory from
almost every standpoint*

Some functions have shown decreased

volume and in such instances, the decreased expense has been in
keeping with the l e s s e n ^ volume^

Total exoensee for the year were

higher than in 1928 for special reasons later described and our
net income exceeded any previous year eince 1.921 c
Staff reductions in the year were 17 persons> the de­
letions including some valued employees 0 We were able to fill in
the ranks by promotions and the general efficiency has not sufferedo
Present personnel consists of 386 employees at iiinneaoolis and 31
at Helenao
Enough detailed explanation is given in connection with
the tabulations to enable the Directors to get a fair idea of the
ground covered in 1929 o

Brief comments are made on Branch operac­

tions in addition to separate report furnished by the managing
Director at Helena*
Respectfully submitted^

January l9 1930c




I N D E X
Accounting
Comments .............................. ................ 30-33
Member bank balances ..................................0» 50
63-63
Transfer and Coding Unit ............ .
Administration Costs ........................ ........... ..«.. 46
Auditing
Comments ............................. ....... .

33

Bank Examination Department .......... .................. .. 77-82
Bank Premises
Minneapolis building ...... ............. ............... . 34
Helena building ............ ............................ .. 35
Depreciation charge-offs and reserves «
.
36
Costs, charge«offs and book~value ................. .
37
Comments .................... ......... ............... 0 38-40
Cafeteria .......................... ................ ......... 95
Closed Bank
Comments .............................. ................. 53-53
Cost of function and number of employees ............ .....53
Collateral
Comments ................................................. . 58
Collections
Non-Cash Collections
Comments ............................................. .
73
Costjnumber of employees and number of items handled eoo 74
Comparative statement,number of items received for
collection .......... ....... ....... ....... ........ .
74
Check Collections - Transit Department ....... ..85~72
Coupons
Comments ..... ........................... .............. .. 73
Cost of function, number of employees and volume of
work handled .......................................... 74
Currency and Coin
Comments ........ ............................... ........ 54~55
Original cost^cost of redemption and shipping charges ... 56
Number of shipments received and sent ........ .
56
Functional costs, number of employees and volume of
work handled 0..... ............................. ...... 55
Amount of currency received from and shipped
to member and non^member banks ».... .
............. S?
Coin shipments received and sent ......................... 58
Custodies ....................

58

Deficient Reserve Penalties ........................... .

SO

Di scounts
Comments ............. ................................ . .48*49
Cost of function* number of employees and volume
of work handled .......................... ............ si
Hates ............................ ........................ . 12
State.r?rr:t of operation* ........ ........................ 50
Statement of Bills Purchased ................... ...... .. 51




Dividends paid since organization
Earnings
Comparative statement 1939^1937 0.. . ........ .
11
Gross earnings and monthly averages „................... 13
Average rates on earning assets ....................... . 13
Comments ...... ............ ................. ......... 13-17
Expenses
Comparative statement 1929-1938-19270.................... 18
Comparative statement of Miscellaneous Expenses ........ 19
Comments ............... .......
0 30-29
Administration Coete~Cenera! Overhead 0.................. 46
Comparative Statement by Funotion^liinneapolis ......... a 47
Comparative Statement by Functions-Helena ............... 93
Reimbursable Expenditures ............... ........ ........ 29
Failed Banks ....... ................. ............... .

53-53

Federal Reserve Agent*s Functions ............ ............ . 75
Number of employees and expenses of various Units ....... 76
Bank Examinations..... ......... ...................... 77^83
Federal Reserve Notes ....... ........... ........ ...... 83-87
Federal Reserve Club .............................. .

93-94

Federal Reserve Notes
Comments ...................................... .
Statistics ........ ....... .......................

33^84
85-87

Fiscal Agency Functions
Comments ................................ .

0. 88«89

Franchise Tax naid since organization . . . . . . . . . . . . . . . . . . . Q 0 6
.
Func 1 1 onal Repor te
Comparative cost of various functions~&inneapolie ....... 47
Comparative cost of various functions-Helena *......... .. 96
Administration costs-General overhead.................... 46
(functional reports will also be found under
department headings such as Currency, Discounte, etco)
Furniture and Equipment
Comments ............................................ ..

41«e43

General Service Functions
Comments ....................
90-91
Number of employees and cost of various unite .......... 92
General Overhead - Administration Costs ................ .....48
Gold Holdings
Reserve Position ............................... ........ .« 59
>
Amount held by bank and F. R 3 Agent ................. .....61
Helena Branch
Comments
.... .
96-98
Comparative functional expense report .................. © 98
Bank Premises ....... .................................. . 35-37




Inv'Cfctraentg 0

61

Leased Wire ................................................. . 34
Liabilities, Comparative Statement 1929«1928 ........ *... „.

3

Member Banks
Reserve Balances ............................ ............. 60
Def ic ient reserve penalties ........ ........ ......... , .. 60
Changes in membership ........... ........ .
79-83
Non~Caeh Collections ..... ............. .................

73-74

Personnel
Comments .......................... ................ ....... 43
Cost of personnel function ............... ........ ...... 44
Changes in staff during 1929 ............................. 43
Welfare and cafeteria « comments ........................ . 95
Monthly basis of salaries by functions ................... 45
Number of employees and expenses by functions ......... .. 47
Federal Reserve Club ................................. . 93 94
Profit and Lose
Statement in detail for year 1929 ................. ...... 3
Summary reoort for year 1929 ................. .......... . 4
Account since organization ........ .............. ....... . 5
Dividends, surplus and franchise tax ................. .
6
Comments .............. ......... .............. ........ 7-10
Reimbursable Expenditures ........................... ...... .. 29
Reserve Position ..................... ....................

59-60

Resources, Comparative statement 1929-1928 .................

1

Salaries
Monthly basis by functions .......... ..................... 45
Securi ties
Custodies unit .....................................
58
Investments held ................ ......................... 61
Surplus
Detail statement since organisation .............. .
Taxes ...... —

6

......... ............. ........... ............

40

Telegraph ........................ ....................*.......

64-

Transfers of Funds
Comments ............... ............. .................. . 32
Functional costs, number of employees and volume
handled ....................... ...... ......... ........ S3
Transit Functions
Comments .............................. .............. .. 65~67
Costs, number of employees and volume handled ........... 67
Statistics ........ ......... ...... ........ .
38«72
Welfare c.................. ................« . ............... 95




M w m t m L . r n . m m bhihch

Gold
Gold
Gold
Gold
Gold

Hedemption Fond » F* B0 lotat - - - - - - - With Federal Reserve Agent - - - - - - - - Settlement Fond - - - - - - - - - - - - - - Coin - - - - - ------- Certificates - - - - - - - - - - - - - - - -

$ 3,970,478.75
66,157* 000 >00
18<085,009,19
;
3,109,615.00
ls144,000,00

$ 2,341,759* 47
47,920,520.00
29,646,039,76
3 , 8ll<, 500* 00
1.930.500.00

Legal-tender notee - - - - - - - - - - - - - - - Silver Certificate* - - - - - - - - - - - - - - Standard silver dollars - - - - - - - - - - - - - -

832,000,00
1.739,617,00
159,474.00

664,209.00
1.470.984.00
374*909a00

National bank notea - - - - - - - - - - - - - - Federal Reserve bank notea - - - - - - - - - - - Subsidiary silver3 nickels and cents - - - - - - -

2,202,000*00
0
264>855o85

1,233,500*00
400,00
158,280 41

F0 Eo Iotas of other F> B» Banks - ---- ~
<
Our Federal Beserve notes on
- - - ------Mutilated F0 B Votes forwarded for redemption • =
*

2,276,500.00
6,383*425,00
680,700.00

1.463.500.00
5,805,170*00

1,498,500000

Bills discounted
Member banks collateral notes - - - - - - - - - Bills bought in open market - - - - - - - - - - Participation in investments through foreign banks
to Bc Government securities - - - - - - - - — J
Itcuaicipai Warrants - - - - - - - - - - - - - - - Federal Intermediate Credit Bank Debentures - - »

6,547,680,39
3,629,079*86
6* 61O0659,65
25,761c22
16*873,330,61
120,475o00
0

2,015,359*61
2.479.903.00
21,791,873.67
27,469.54
10P907,311,00
60,000a00
1.575.000.00

Premium on T a S. Sec, A Fed, Into Cr. Bank Deb«- J
Interest accrued - - - - - - - - - - - - - - - Expense current - - - - - - - - - - - - - - - - Furniture and equipment - - - - - - - - - - - - Dividends accrued - - - - - - - - - - - - - - - Transit items
---- Bxchangee for clsaring house
Checks and other cash items - - - - - - - - - - -

3,521.95
66,090,51
1,022*009,00
24{733,81
!
184,029,92
11,793.609,69
286,109,71
434^447,62

74, 546a36
1.000.474.46
32,027.65
181,202,86
14,007,387a19
2790756<>38
79,374,52

Banking Houses
Land - - - - - - - - - - - - - - - - - - - - Buildings including vaults - - - - - - - - - Fixed machinery and equipment - - - - - - - -

505.520,66
1,418 281.50
636*162,54

505,520o66
1,418 28150
636*162o54

Overdrafts - — - - - - - --------- ----------- 0
Deferred charges - — - - — - - - — - - - - 19,152.44
Claims account closed or suspended banks - - - - 1,767*559,61
Property acquired under foreclosure - - - - - - 27,135*62
Suspends account temporary investments - - - - - 0
Dus from foreign banks - ....... 18v020o53
Difference account - - - - - - - - - - - - - - - 446,23
Suspense Account - General
36#985,25
Fiscal Agency expenses, reimbursable
1,661,26
War Finance Corporation expenses, reimbursable - 0
Reimbursable expenditures ~ postage - - - - - - 564,56

918.46
17*098.40
2,015,643*22
35,930,69
82p068*68
19,654.65
523.66




3*766*87

0

1,782.14
146.13
218.88

CQjg.lH.TTTt a s g s s m

S I ttm L W IM

MssmTi Bm „o> np ^ tfptis abto ^ bia j bahci
December 31> 1929
federal Eeaerve Botes outataodlag

73a919,570a00

December 31, 1928

$ 723577,520,. 00

Member banks °Beserve account - ^
-— -- Fundi of cloeed banks held for receivers
and others
0o So Treasurer « General Account - - - - - - - - Due to foreign banks
Ion member banks - Clearing account - - - - - - - Officers0 Checks
Federal Reserve drafts
.
Other deposits « ~ ~ ~ -- - - ------ 12,195 99

56,862.,437,99

56„0670106o75

128?120*81
1*579,231*13
I40{
,215o6l
14,9?$* 28
103,939.09
3,013,09

107w625„ 72
945.577.53
175f638041
23,385, OS
191 045,74
4.100.00
6 352 35

Government transit items - - - - - - ---- - ---ill other transit items

169s302*50
11*365*261 =22

147.710.53
12,933.350 06

Accrued taxes other than franchise tax unpaid - - Capital stock suspense account - - - - - - - - - Sundry items payable
Suspense account general -

164a01957
0
1,722* 83
' 0

126,064,29
1.500.00
7^626c 57
5,277*48

Discount on t, S0 securities
J
Unearned discount -

15c371076
7 , 450 25
0,

16P926 43
124,957o86

for self insurance
for depreciation on to So bonds ~ ~ ~ < « =
J
= »
>
for possible losses account failed banks ~
for depreciation on fixed aachicory and
equipment < Minneapolis ~ ~ ~ ~ ~ ~
=
>
Beserve for depreciation on fixed machinery and
equipment - Helena » » . • ««=,««=,
Beserve for depreciation on building - Minneapolis
Beserve for depreciation on building - Helena - ~ -

250,;
000a00
. 3*444,00
311P571019

3,444,00
595,102,62

260 444,93

198,439:58

11*207<>13
102^662,52
75.918,74

9f
,596o23
76,996.89
73,218,74

BeServe
Beserve
Bsserve
Eeaerve

Special credit account closed banks

la381j601,90

Discount earned Interest earned
Penalties on deficient reserves •
Miscellaneous earnings

«
-

—

Profit and Loss = > a < 3 o = » o » a o < * a o » a o » a o
Capital stock paid in
Surplus =




-- —

~

l,404e?54,30

1,357,980*49
5360835=04
120474a96
18074On68

le100.286 58
5830760a62
7,763.14
18,493,72

79884323
3«091*150,00
7,08i, 91’11
Tt
,

008,600,00

7„0SaaES3„05

rm RAL RESERVE BASK 07 MX1WEAP0LJS

m

T

P

i

f

g

j

i

f

j

&

a

Discount earned on bills discounted Minneapolis „
$1,010,233,43
Discount earned on bills discounted
Helena Branch
3??437063
Discount earned on bills purchased 0 0 g . 0 . 8 » a 0 0 < 00
,
310,209*43
388,603.50
Interest earned on United States securities *
Interest earned on Federal Intermediate Credit Bank Debentures
123* 396o 14
Interest earned on Municipal Warrants 0 o < - 0
>
, < o «
,
? a001p45
Interest earned on foreign loans on gold
...o
l f.4253?2
Interest received on past due paper of closed banks , „ 0 „ ,
17,833095
Interest earned on delayed wire transfers 0 0 , 0 0 0 * . . *
0
Deficient reserve penalties - Minneapolis 0 . . » « < • » . ,
,
^ ? e416o46
5 ?058u50
Deficient reserve penalties - Helena Branch . 0 « o * * » . *
Profits on purchases and sale* of Uo S Securities < 0 a 0 „
,
2P383ft47
Participation in transactions with foreign banks „ 0 * . • •
14 v430,96
,
196-44
Sale of waste paper < * * « « • . • » , « * • * • • » • « * *
>
Uonth^y setters sold <ja ® » < * o < > u a o o o « » o <
>
»
<•«
9o00
Service charges on collection items returned - Minneapolis »
162,34
Service charges on collection items returned - Helena Branch
6.75
136,00
Clearing house fines
........ »
67o02
get commissions on hail insurance . . 0 * . » 0 • « • « • p •
Expense current ~ Minneapolis
, . 0 • • . . * • « • » o < • 934,887046
,
Furniture and equipment.............. .
„
. * 24W732J81
Expense current - Helena Branch . • .
* 0 • • • « » • • * 87,121,54
Reserve for depreciation on building - Minneapolis a
• « • 25,665o63
2,700c 00
Beserve for depreciation on building - Helena Branch • • * »
Reserve for depreciation on fixed machinery and equipmentg Minneapolis a 9 « » . « « « . . . 62,005*35
1,610,90
Helena Branch « ............ .. ,
General differences - Minneapolis . . . „ 0 * , „ 0 • . , . •
1049
Tellers and coupon differences - Minneapolis . « • » • • • • •
359,60
Transit and clearing differences « Minneapolis a • 0 . . » *
47,12
General differences - Helena Branch
• • • ........ . « •
24,80
Recovery of expenses in connection with closed banks „ * , „
12,448 19
Sales and allowances of old furniture and equipment „ * . » *
3,650 00
19*30
Post dated Liberty Loan coupons 0 • • » < • • * . . • • • . • .
>
Loss on transit items account of failed banks
,
c
212*89
202,64
Recovery of transit items previously charged off
« • • o
2,939d73
Unused balance of amount reserved in 1928 for abrasion on gold
Rebate of deficient reserve penalties asseesed during 1928 0
40,81
Interest paid to First Rational Bank, Duluth, Minnesota
on account of our delay in making transfer of funds a . 0
33,33
Loss sustained on collection item received froa Salt lake City
Branch-Federal Reserve Bank of San Francisco due to our
error in complying with instructions e , a 0 » . . » « » «
167,, 71
Vet loss on salss of United States securities through Special
Investment Committee o o . » o « o o o < , o o o o « > o » * »
13,796,03
Dividend on employees group life insurance policies (2/3 of
2,611*44
dividend for policy year ended ley I, 1929)
Refund of premium on Workmens Compensation Insurance for policy
57,74
year ended December 31, 1928
.......... .. « . • • * * •
62o 75
Recovery of expenses paid in 1928 . . . • - • . • * . • , .
Dividends on 18 shares of capital stock cancelled April 2, 1929
76a19
account First Bational Bank, Pompeys Pillar, Montana
Dividends paid
»«, 0 o * •
• 184,029o92
Transferred to Surplus (10£ of balance of net earnings)
61„073ol8
Franchise tax paid to United States Government (900 of balance
of net earnings) a * o « o • » . • « • o • o « » • , • . 549*658,58




0

0

0

0

0

0

*

0

0

0

0

0

0

0

0

0

0

0 0

0

tt.*48.16?a» ll.948.167, 66

3

FEDERAL RESERVE BANK OF MINNEAPOLIS AND HELENA BRANCH

SUMMARY REPORT OF EARNINGS, EXPENSES AND
PROFIT AND LOBS ACCOUNT DURINQ 1939.

Earnings --------- . --------------------11,936,031.17
Current expenses--------------- -- - - !„ 033.009<,00
Current net earnings---- - --------

904,033.17

Additions to current net earnings:
Miscellaneous * - - ---32al3So49
>
rstfnt:a
Deductions from current net earningss $
3* Reserve for depreciation on building
Minneapolis building - ----- 35,685.63
3,700000
Helena building - - - - ----10 % Reserve for depreciation on fixed
machinery and equipments
Minneapolis building
63,005o35
Helena building - - —
- - 1,610.90
Furniture and equipment
34,733081
All other ~ —
__ 14,,683^39
Total deductions - - - - - - - - ----$ 131a396.98
Net earning available for dividends,
surplus and franchise tax - ------Dividends paid - -----$ 184,039o93
Transferred to surplus account - - - Franchise tax paid to United States Government




$ 794.761a68

61,073.18
549.658e58
f~7$4 t
t'761o68

FEDiSKAL KSSERYE BAKS OF ^IBKSAPOIXS AND HSLSEA BBAKOB
STATE^SKT OF EAKKIKSS. EIPSKSES AJTD PK O F i F A K D LOSS AOOOPKT
SINCE t®QAKllATI®

429,773,387
12 034 534

Earnings
Expenses
Het earnings before depreciation - - -

#17.678,853

ADDITIONS TO EARKIKSS
Withdrawn from reserve for possible losses
288,000
Vfitiidrarn from reserve for depreciation on U.S*Bonds
143,469.
W i t hdraw from surplus to reduce boplt value of building 500,000
All other
343,194*
TOTAL ADDITIONS
>$ 1,875,663*
''
DEDUCTIOHS FROM EARHIKGSs
Reserve fcr self insurance
250., 000,
Bank premises depreciation
1,697;832 .
Furniture and equipment (Including ?40f000 for vault
*
in New York Iiife Building)
483,572.
------Reserve for possible l o s s e s --------- -—
700.000.
Reserve for depreciation on Uo 8 « Bonds « - - - ~
146,913
Other Real Estate - Building sitei
Expense ~ ■
------ - - $60,407.
Income - r - •;. 353800,
Net Expense
- - «
24,607 *
All Other
oBwajoewMewo
167,212.
TOTAL DEDUCTIONS
T T . V flttSB*
ffet deductions

— ._ - _

3.194,455.

„

115.484.390.

Distribution of net earningss
Dividends paid ~ ~
---------. ♦Transferred to surplus Franchise tax paid to U* So Government

# 3 S?33»834.
7,343,986,
5.107 510,

Uet eaxninge

—

—

-

CO

r;O

«M

u>

*#500,000 was witbtixama from surplus account tc
reduce book value of building Dec. 31, 1937. The
net balance in surplus account Jan. 1 . 1930 there­
fore ie 17,143,983.39.




DIV1DSSM PAID 8 IKCB ORGAHIZAflOM - Bi YEARS
?Q1S
1917
19X8
1919
1930
1931
1933
IS33
1934
1935
1933
i&o?
1928

«
-

$ 57,7'i9o8?
383,894,19
1S3.103.97
180,186.31
195 870.55
311)357.03
313,774.01
313,733.68
303,837„98
193,559.46
187,609.35
180,733.51
181,303.85
5 ?,"3'I,893 =59

DETAIL STATEitEST OF SDSPLPS AOOOONT 3IH0E ORSASIZATIOII
January 4
w'
W
'■
I
t
December 31, 1918
It
March 4 g 1919
from Reserve for Franchise Tax
it
June 30? 1919
to Surplus from Profit and Lose
it
«
19
n
December 31 o 191S
»
tt
«
H
June 30,, 1930
i
t
«
*
ft
December 31; 1930
13
i
t
tt
tt
June 30, 1931
a
It
II
it
December 31,, 2931
i
t
ft
H
H
December 31, 1933
1
1
M
a
H
December 31, 1933
H
M
It
ft
December 31, 1934
W
H
»
ft
December 31, 193?
f
t
II
T Z p 1926
'
It
tt
December W
n
t
t
t
t
If
December 31, 1 9 3 ?
f
t
»
I
t
If
December 31, 1938
It
»
tt
t
t
December 31, 1939
Total © o o o a <
. . .
$
Less 5
December 31* 19B3 Additional franchise tax
paid for* the years 1930 and 2931 . • . , $ 5 3 ,4 3 3 *3 6
December 31, 1937 withdrawn from surplus
to reduce book value of building •
, 5 0 0 t000o00
Balance in surplus account December 31, 1939 ,

37 ,500 O00
@83 ,871o83
988 ,871c83
904 s357©40
1 ,3 4 9 ,399«04
1 ,6 0 9 ,341o5S
1,801 ,706o54
333 ,131c95
165 ,407.67
56 ,893 o10
11 ,373c35
13 ,637c39
4 ,139o45
36 ,043 o33
11 ,535,10
43 ,350 o06
SI .073c18
7 ,6 9 5 ,4 0 9 .6 5
#

5 5 3 .433c36
7 ,li2 ,9 8 '3 o 3 S'

STATEMENT OF TOTAL FRANCHI8E TAX PAID SINCE ORGANIZATION
December
December
June 30,
December
December

31, 1918 Transferred from Profit and Loss
it
n
«
31 , I92C
tt
it
it
1921
tt
ft
tt
31, 1931
tt
on account of underpayment
31, 1932
years 1930 and 1931
it
December 31, 1932
from Profit and Loss
IS
it
H
December 31, 1933
ft
h
t
i
Zz member 31, 1934
tt
it
It
December 31, 1935
it
It
w
December 31, 1936
II
tt
December 31, 1937
If
t«
w
December 31o 1938
It
it
it
Decembe r 3 1 B 1939
Total 9 - il O O O 0 9 V O O 9 O 9 0 • • o o o • •




h

3 7 ,5 0 0 o00
5 3 4 ,3 3 3 o58
1 ,3 8 4 ,4 9 7 «6 3
1 ,1 6 6 ,4 8 8 *9 8
53, 433c36
513, 038•98
1 0 1 450*35
113, 646o58
37, 355o04
334, 380•91
103, 815o90
390, 150o58
549 s658c58
"§710^, 510c 36’

,

PROFIT AMD LOSS
Our total income for the year 1929, including direct credits
to profit and loss account representing recoveries of amounts previously charged, was #1,948,16?<>66.

The current earnings which represent the

income on advances made to our member banks as well as purchases of ac^
ceptanoes and United States securities^ were $l,93S9031o17 the largest
total since 1931 and $3155,727011 in excess of the current income of 1938=,
Total ourrent expense was $934,887e43 at Minneapolis and
#879131»54 at Helena.*

For 1938 the current expense at Minneapolis was

$906,312o77 and at Helena $94p361o69<>

The reasons for increases and de«

creases will be given in discussing the various expense items later in
the reporto
Miscellaneous entries in profit and loss account were less in
number and amount than in the past few years0 Recovery of expenses at
closed banks amounted to $13p448019 in comparison with $35p113036 in
1928o

Allowances and sales of old equipment 9 mostly adding machines

placed $3,650 in profit and loss accounts.

We are not permitted to re^

duce the cost of new purchases by the amount allowed on old articles
turned in0 At the close of December 1938 we set aside #7P000 to cover
the abrasion on our accumulation of #10 335^000 in light weight gold coin
we had shipped the Treasury Department

The amount of the abrasion did

not reach the amount reserved and $3,939©73 was credited to profit and
loss accountu
Each year we receive a dividend on our employees group life
insurance policieso

Two«thirds of this dividend is earned on the pay­

ments of the previous year and must be credited in profit and losso

The

dividend in 1939 was #3p917016 and of this amount #3,611044 appears as
a profit and loss credito
On the sales of United States securities handled through the
Special Investment Committee at New York, we lost as our proportion
$ 1 3 , 7 9 6 . 0 3 During the previous year we charged off losses of $51P248Q45
on similar transactions^

Most of our present holdings of securities

purchased by the Investment Committee have been accumulated during the
past month and it seems unlikely we will have losses on any of these
securities sold during 1930o




i m M j m j k m

(oontd)

After making the various charge# approved by the federal
«te*erve Board against Profit and Loss accounts we had remaining
#0X0,731o78

Otoder the law we are permitted to add 10 per cent or

$81o073 18 to our Surplus and the balance, #549c358,-68 hae been credit
ed to the Treasurer of the United States as a franchise tax for the
calendar yt»ar 1929w
Tne various accounts cleared through Profit and Loss account
at the close of 1939 were as follows*

Helena

8 7 . 1 3 1 , 54 $ 1,023,009.00

The above figures show a reduction of over $7,000 at Helena
a n d an Increase of ap pro xim ate ly #29,000 at Minneapolis^

As the pre~

paring of our n e w notes cost us over $30,000 more in 1939 than in 1938
the reason for the Increased total expense at Minneapolis during the
past year is easily explained*

Many items show reductions and we be­

lieve the total costs for 1930 will compare favorably with those of
1939

These matters are more fully expl ain ed u nder the wr ite -up of the

functions*

Helena

o00

1,895.75

$

3 4 , 7 3 3 o81

Purchases were |7„300 less than in 1928 but are still higher
than we wisho

The major portion of the amount spent during the past

two years has be e n for replacements of ad ding maohlne e q u i p m e n t «

We

believ e o u r 1930 expenditures will show a reduction of $5 ,0 0 0 from the
like expenee of 1939 and we may be able to reach the yearly total of
$15,000 whi ch is our aim*

Helena

3 8700c 0 0

$

38^65,03

No change is made fro m the amo unts set aside as depre cia tio n
reserves fbr buildings at Minneapolis and H el e n a at the close of 1928,
We w o u l d like to increase the reserves set u p or make another $500,000
reduction in the Min neapolis b uil din g book value such as was permitted
at the close of 1 9 3 7 e

The replacement value of our buildi ng proper

under the uni for* p lan approved for all Federal R eserve Banks by the




8

PROFIT AND LQ88

(0ontd)

Federal Reserve Board is #1,283,281o50e We believe the book value
should be as near as possible to sale value and the appraisal made
of our building shows the book value much too high«

This same view

holds true of the Helena building in spite of the fact that the net
book value is #56,381o2S or #100,000 less than the original cost.

The

depreciation reserve against Minneapolis building on December 31,1929
is $128,328c15 and the like reserve for Helena building is #78,618o740
Helena reserves have been accumulated over a period of 10 years while
at Minneapolis the period covered is 5 yearso
DIFFERENCE ACCOUNTS (Debit)
Minneapolis
$ 405e23
Helena
84c80 #

430o03

The total of differences charged off is less than in 1927
or 1928 with most of the shortages in the Money Sorting Division of
the Currency Department,

Tellers differences were #359»60 in compari­

son with #57S026 one year ago*

Net differences in check collection

and clearing divisions made a charge against profit and loss of #47012
which is low considering the volume®
DIVIDENDS PAID

# 184,029.92

Amount of Capital Stock held by member banks on December
31 9 1929 was $3,091,150 with average holdings of #3,0670278 for the year.
One year ago the holdings were #3,008,600 and the average 1928 holdings
$3,020,OOOo
1928o

Dividends paid decreased each year for five years until

The amount paid in 1929 was #2,800 greater than in 1928 but is

#29,745 less than in 1922 when the average holdings of our capital stock
by member banks was at the high marko

Total dividends paid since or~

ganization amount to #2,733,893o590
ADDITION TO SURPLUS

#

61,073.18

This amount represents 10 per cent of the excess income after
all expenses, allowances and dividends have been provided for*

The

total excess of #610,731c76 is the largest amount we have had available
at the close of any year since 1921 • The gross amount of credits to
>
Surplus since organization aggregate #7,695,409o65e

Adjustments of

franchise tax payments for the years 1920 and 1921 reduced Surplus
#52,423*36 and at the close of 1927 we withdrew #500p000 from Surplus
and applied against Building Accounto



The present balance in Surplus

PROFIT AMD LOSS

(Contd)

Account ie #7,142,986029 or #960,68So29 more than the subscribed
Capital Stock of this banko
FRANCHISE TAX

$ 549,658 o58

The franchise tax paid the Government is the largest amount
paid by us for any year with the exception of the year 19210

These

payments represent 90 per cent of all profits after expenses,depre­
ciation allowances, and dividends have been provided for0 With the
payment of the above amount the aggregate of such payments made to the
Government since organization is #5,107,510o33o Payments of dividends
made to the member banks have averaged #182,000 per year since or«
ganization0 Payments made the Government have averaged #3409000 per
year or if applied to the average amount of capital stock held by the
member banks would be equivalent to 11o2 per cento




s s m s m m s t m m 9* moss m m t t a s
f f W f t M S LULL: bahk c r jwafitfans w > maflu brasch
TOP
a
Minneapolis
Earning* from

___1322___

Helena Branch
_____________ 1 9 2 9

Discounted Bills
* x.010,333.U
3
310,209.U3
Purchased Bills
388.6c9.50
United States Securities
ig.39 6.lU
Federal Intermediate Credit Bank Debentures
7,ooi.U5
Municipal Warrants
1.U25.72
Foreign Loans on Gold
7.U16.U6
Deficient reserve penalties
Income from hanking house
Interest received on past due paper of closed hanks
17.833*95
Interest on noncurrent funds, delayed wire transfers, etc.
2 .383.U7
Vet profit on T . S. securities sold
J
.U,420.96
Participation in transactions with foreign hanks
196.uu
Sals of cancelled stamps, waste paper, money hags, etc
162.3U
Service charges on collection Items returned unpaid
9.00
Monthly letters sold
136.00
Clsarlng House fines
Bet commission on >*ail Insurance

♦ 37.U37.63

$ 1.883.528-29

$ U2.502.88

Total £amln&8




5.058.50

Combined
_ 12g9. . .

$ 1.0U7.771.06
310.209. U
3
388.603.50
123.396.1U
7,001.1*5
1 .U25-72
12.U7U.96

Combined
___ 122£_

•

2.383.U7
1U.U20.96
196. U
U
169.09
9.00
136.00
_ _
*1,926,031.17

♦ 192,216.06
360,292.95
707.598.9^
8 ,808.97
59U.78

7.763.1U

17.833-95

6.75

U90.751.39
609.535a 9
512.U33.11
26.68l.57
373.60

Combined
-J L 32Z—

13.U0U.6U
15.00
UU.225.68
37.337-22
U6.66
69.6U
U .793.U5
5
6. 669.38
ll.l60.98
22,268.17
193.26
187.19
182.80
1U
2.79
25-13
106.00
97.00
_ 1S * 3Q ___ JU .79. 5.6
...

$1,710.30U,06

tt.390.031.U9

•m** v i m m m
91 u m m

W H B B t W . ASSETS

HtWRU. M I B W 8 i H 0> MIMttiPOLTS « n i m a m

BBJICB

km

im
Earn lag s frocu
PiSfiOUQtdd tills 0 0 0 4 0 0 0 0 0 0 0 9 9 0
JH^r^baSed bills
United States Securitiee
Federal Intermediate Credit Bank Debentures
Municipal Warrants
Foreign Losn^ on Gold
Deficient Reserve Penalties 0 . •
Miscellaneous
o

o

a

0

o

.

o

o

p

.

a

e

e

e

o

e

.

o

o

e

o

a

o

o

o

s

e

o

o

.

«

.

o

o

o

.

o

o

o

o

»

o

.

o

•

a

$l00470771o06
310.209 43
388„603 5G
o
* o
123,396c14
7*001.45
0
le425a72
12,474.96
.HiUfLa
o

o

o

*

o

.

a

o

o

$ 490,751.39

6099535*19
512,433,11
26,681>57
373*60
0
7,763*14

...........

$1 926t031o17 H e710p304*06
,
Monthly average of gross earnings 0 c 0
0
Monthly average of current expenses 0 « * • • * •
Monthly proportion of operating profits , * , .
Monthly proportion of dividends paid . 0 * . « . *
Monthly proportion of original cost of Federal
Be serve notes including shipping chargee to us
.

.

o

.

o

0
o
e>

0

$ 160,502.60 $ 142,525 34
83*372*87
85,167*42
75*335*18
59,152,47
15,,335 83
150lOO*24
6,636 85

15?49o34

29.47

23c 50

Bate per cent of current net earnings on paid

t t U 3 0 S a M 8 J B « l » M ^ Q ^ l K L ASStTS
Bill* Die- Bill*
Do So
Jederei Iat, Municipal foreign
Total
counted
Purchased
Seourltle*
Credit Bank Warrant* Leant on
-------------------------- ------------------------------------- P*t>»s$.pr?»______________ 9aii____________ _
1929 $31,624,673
1928 11,199,882

$ 6,328,38?
15,354,918

$ 9,812,359
13,701,741

(2,679,658
686,803

$140,326
8,784

Bills Dis­
counted
1929
1928
1927
1926
1925
1924

BUIS
Purchased

8.
Securities

Federal Int. Municipal
Credit Bank . Warrants
Debentures

4*8450
4.382
3.937
4*000
40030
4o 458

4.9020
3.970
3.412
3.548
3.245
3.720

3.9600
3.740
3.581
3.850
3. Sfil •
3.899

4*7830
3.885
3* 654
3.827
o
e
d
l

1923 4.502
1922 5119
1921 6.479

1920 6o 223
1919 4o381




4.125
.

6.097

5.259
4*267

4 0250
3.427
2,055
2.016
2.460

o
-

•

4*9890
4*253
3.722
4.000
4.000

4.374
4*500
4.752
5„ 807
»

o

Diesount rate effective
January 1, 1922
5
Discount rat© lowered
January 11e1922 to
50
Discount rats lowered
August 15,1922 to
4£0
Discount rate lowered
October 14,1924 to
40
Discount rate loweredSeptsaber 13, 1927 to 3f0
Discount rate raised
February 8*1928 to
4%
Discount rate raised
April 25, 1928 to
4f0
Pi s cm m t rate reeled
i
M j 14, 1929
m
to

$38,340 $40,513,743
0
40,952.138

Foreign
Loans on
Gold _

5.031*
«
•
4.500
3*569

3.000
«.
=
-

Total

4*6360
4.004
3.580
3*793
3.651

4.084
4.411
4.640

6.091
50?55
4.114

EARNINGS
Earned at Minneapolis

$ 1,936,031c 17

Jly883?528o39

Earned at Helena

#42 503*88

Although the earnings for December fell below the monthly in*
com®

of the previous three months^ the results for the complete year were

qu'te satisfactory when compared with prior yearso

In only one year (1931)

has a greater franchise tax been paid to the Government*,

Net availables

for dividend*, surplus and franchise tax were $7949761Q68 in comparison
with availables of # U 4 p703o50 at the close of 1928•
Our monthly income has held up well throughout the year there
being no month in which we failed to cover all our requirements©

The

average monthly gross earnings in 1939 amounted to $160^,5020 60 in coa*^
paxison with a monthly average of #143;525<34 in 1928*

In October 1939

our earnings reached $251*353o89 the largest monthly total since 19310
Previous to 1928 for several years we had found it necessary to ask for
additional allotments of acceptances through the Special Investment Com­
mittee at New York «n order that we might be certain of covering all our
needSo

For this reason our income towards the close of each year was

substantially highero

We also received heavy allotments of acceptances

in the last quarter of 1938 because of conditions generally and not b e ­
cause we required the income®
Since the beginning of the second quarter in 1938 our advances
to member banks have been a more important part of our total incomeQ Be
ginning with April 1939 the monthly profit from discounts for member banks
has exceeded the profits from all other earning assets combined

From

rediscounts and collateral loans we received during the year $1,047,7710 06
or 5404 per cent of the total current income* The similar income in 1938
represented £8?7 per cent of the total®

In 1937 however9 the amount re­

ceived was slightly under 14 per cent of the total current incomec
In the following table it will be noted that the source of
our income has changed greatlyG

Out of our total current income in 1927

we received but 17c6 per cent from sources within our District©
this total had increased to 330? per cento

In 1928

With less necessity for $n->

vesting in United States securities and acceptances during 1S29, the
proportion of our income received from sources within our District amount­
ed to 61,1 per cent of the totalo




SARHINGS

(Contd)

Income from Pistrict
1939
Discounts for Members
$1,0477771*06
Warrants
7,001*45
Penalties for deficient reserves
13,474*96
Interest on Past due paper of
closed banks
17,833*95
Interest on Federal Intermediate
Credit Bank Debentures (Sto Paul) 91,493*36
Miscellaneous
510o53

1938
$49tT,7Blo39
373o80
7,763*14

1987
$19273T6u06
594078
13,404*64

44,225c68

37,337o22

14.815o39
710o03
$ I 7I t 77oS5731— | 5 5 § ; W o i S ..

l n716031

Income from Without District
Discount from Purchased Bills
$ 310,209*43
$609,535*19 $360,392*95
Interest on U« So Securities
388,603*50
513,433011 707,598*94
Interest on Federal Intermediate
Credit Bank Debentures (Omaha)
31,903*78
ll,866o38
8 f808o97
Foreign Loans cm Gold
1*4250 72
0
f
i
Net Profit on Uo So Securities sold
2,383e47
6,6S9038 45,793o45
Participation in transactions with
Foreign Banks
14.420o9S
llo160oS8 2202S8017
5 74S*§45o83$ 1 , 1 5 1 , ^ 0 4 1 1 7 1 4 1 ^ 7 6 0 5 ^
While the major part of our income from discounts has come from
the banks in the Twin Cities, there was increased borrowing done by the
country banks especially during the last half of 1S29®

For a number of

years the advances have largely been in the form of collateral loans*
During the past few months there has been a much larger proportion of com­
mercial and farm paper under rediscount

Discounts have averaged $21,625,000

daily for 1S29 or $10,500,000 more than the daily average of paper under
discount in 19280

The peak of our discount operations in 1929 was reached

on October 14 when advances to members totalled $45,505,000 made up of
$19,197,000 collateral loans and $26,308^000 of rediscountao
amount under discount for members in October was $4X,99G,015o

Average
In December

this average fell to $18,263,731 with $10,177,000, the amount under dis­
count on December 31, 19390
The average rate obtained on discounts for members during 1929
was considerably better than in 1928 and in fact, is the best rate obtain­
ed since 1922 when the average rate was 5oll9 per cento

For the past year

the average rate was 4*845 per cent in comparison with a rate of 4 0382
per cent in 1928*

Until May 13, 193S, discount rate was 4^ per cent and

since that date a rate of 5 per cent has prevailed, there being but one
change in our rate since April 25, 1928o
In 1928 acceptances alloted through New York or transferred from
the portfolios of other Federal Reserve Banks furnished more of our in >
come than from any other source, while in 1929 the profit from United
States securities as well as from member bank discounts fcas been in



EARNINGS
excess of the return from acceptanceso

(Contd)
The daily holdings of acceptances

averaged $8,328,000 during 1929 and $9,000,000 lees than the daily average
for the previous yearo

On October 1, 1929 we requested the Committee at

New York to eliminate our allotments of purchased bills until further ad«
visedo

When our other earning assets began falling off in December we

obtained further small allotments of bills with a total held on December
31 of $6,611,000 representing a net increase in holdings during the month
of #3,842,000*

Rates for acceptances have been reduced materially during

the past two months, the average rate obtained in December being 4 e427
per cento

The appreciation in the average rate obtained on acceptances

in 1929 over 1938 was greater than for any other class of earning asset*
For the year the average rate of income was 4 o902 per cent compared to
3o97 per cent in 19280

This was also the best rate obtained since 1921,

no acceptances having been held throughout 19220
For most of the months in 1929 our average holdings of United
States securities have been under #10,000,000 including $7,614,000 carried
in our permanent investment account*

Until December there has been little

activity in our Participation Account handled through New York*

This ac~

count which contained a large portion of our total holdings in 1927, was
gradually reduced with substantial losses taken on securities sold*

At the

close of December 1928 there was held for us in Participation Account
$3,322 500o

This amount was reduced to a low mark of $761,000 by the end

of July 1929o

Some additions to our holdings were made in the next quarter 0

During December we accepted our portion of purchases made through the Com
mittee and the net addition to our holdings during the past month has been
$6,605,500o

Losses charged off on Securities sold by the Committee during

1929 amounted to #13,796*03 0 The similar losses absorbed in 1928 were
$51,248o45o
Interest received from our holdings of United States securities
amounted to #388,603c50 or $123,830 less than the amount received in 19280
The average holdings of United States securities were $9,812,000 in
1929 with $16,873,000 held on the last day of the year*

While future

conditions will determine whether this amount should be reduced or not,
the Indications of a lower average interest rate in 1930 shou'1

make a*

unlikely, we will be called upon to assume losses on any securities soldo



mgaiqg (contd)
The service we render our member banks in arranging purchases and sales
of United States securities is consistently made use ofo

On December

31 We included with our holdings $470s>3?0 of United States securities
for which sales had been arranged but final payment not received by us 0
The interest on such securities carried for member banks has been i n ­
cluded with the income received from our other United States securities
f$r the last 8 months®

Interest received during the first 4 months of

1929 is included with miscellaneous earningsv,

in four out of the last

six ye&r&p the return on Governments has been better than on acceptances
The average rate obtained on Governments for 1929 was 3o96 per cent in
comparison with 3c74 per cent in 1928 0 The rate received for the past
year is the beet obtained since 1923*
Federal Intermediate Credit Bank debentures were carried during
every month in 1939^

These debentures were issued by the Sto Paul and

Omaha banks, the greatest average for any one month being in June when
we held $3s7659000*

For the full year we had daily average holdings of

$2,580,000 from which we received a total income of $133P39£LI4 at an
average rate of 4 0783 per cento

On December 31 we held rtO debentures,

the last being taken up on December 180
Municipal warrants furnished $7r001o45 of

out

income in 1939 0

The major portion of this amount was paid us by the First National Bank,,
Minneapolis for carrying City of Minneapolis and Board of Education,
Minneapolis, obligations.*
After showing reductions for a number of yearsi penalties for
9
deficient reserves increased from #7,763ol4 in 1928 to $12,474096 in
1939©

Of this increase $3,078*45 was charged against the Montana member

banks and the balance in the territory served by MinneapoliSo

At

Minneapolis 306 banks were penalized $7,416*46 and at Helena 31 banks
were penalized $5,058o50o

In 1938 the total number of banks penalized

was 173o
From 12 closed banks making final settlement with us durLag
1939, we obtained interest of $17,438o32«

We also received $395o63 in

interest on direot advances whioh we had made to protect cur interests
Recoveries made in 1928 were larger, 20 banks making final settlement




EARNINGS

(Contd)

paid in #43,149o?l and we also were paid #l,075o97 as interest on the
advances we had made to protect ourselveso
On the various types of transactions had with foreign banks*
all of which are handled by the Investment Committee in New Yorki we
received a profit of #15*840098 for the year*

The largest portion 9

#13j>318o59, consisted of commissions paid by the foreign banks on bills
and securities bought for their accounto

The Bank of Houmania and the

National Bank of Hungary paid #812«,50 as commissions for credits grantedo

Foreign Loans on gold gave as our proportion of interest, the sum

of $19435o72o

Only small balances were maintained abroad during 1939,

our share of interest paid by the Bank of England being #389o87o
Other miscellaneous income such as sale of waste paper* bags 3
etOojService charges on collection items returned unpaid; monthly
letters on conditions sold and fines imposed by our Clearing House
netted #510o53„
It will be noted that while our gross current income substan­
tially exceeded the earning 6 of 1928 the average daily amount of earning
assets held in 1939 was less than in 19380

The daily average of hold™

ings in 1929 was #40^514,000 or #438*000 less than the daily average in
7938,

The explanation lies in the fact that our average earning rate

on all classes of earning assets held in 1939 was 4 a636 per cent in
comparison with a similar rate of 4 o004 per cent in 19380
On the basis of the average rate obtained in 1939 average earn­
ing assets of #38,000*000 would have enabled us to cover our require­
ments

With indications that the average earning rate will be lower in

1930 and that our expenses will show a substantial decrease, we believe
that average earning assets of #31,000,000 at a rate as low as 4£ per
cent will be ample to cover the known needs of 1930c
After allowing for current expenses the net income is equiv&»
lent to 39047 per cent on the paid«in Capital Stocko

The return on

Capital Stock was 33o50 per cent in 1938 and 11 <>33 per cent in 19370




CO?,*PARATIVE S T A f m m
CU3HBHT SXFSHS'SS OP TITS II5D1SHAL HBSTOTB BASHT OF MXHH8AP0LIS AND KKLBNA BRANCH

Helena Branch

Minneapolis
_____________

Salariees
Bank Officers

Clerical Staff

Specirl Officers and Watchman
All Other
Governors * Conferences
Federal Reserve Agents1 Conferences
Federal Advisory Connell
Directors1 Meetings
•Traveling expenses
Assessments for Federal Reserve Board expenses
Legal Fees
Insurance (other than on currency & security shptsc)
Insurance on currency and security shipments
Taxes * t hanking house
>
Ii
»
heat and power
Bepalrs end alterations hanking house

ia & _

10**,*5V2€
312,763.27
25,6s^50
55.105.99
567o36
319cBS
1»
395»55
5,82«o55
13^397.55
19>33 olG
15e
«T7o35

26.97253
13 .203^96
75b100©00

Combined
1938

12,900.00
33.556003
5 s6Uo„00
2.857.50

735-00
1;3 18 8J
1„200.00
3 , 776.71

1 ,6oU„58
2 028.25

,

117,783.28
3U6.319.30

117 .503.16
350.U5 i.88
29.96l,7U

567.36

$

65. 635.52
687.30
587.23

31,32H„50
57.963.%

319.86
1.395-55
6,563.55

lU, 716-36

i,ii»9„67
6.793.U1
20.lU6.U0
18 ,930,68

30, 755. *

30.899.lU

19>33.l6
17.077.35
lU,808,5U
77.128.2J

16,830.38

6.579.02

1.136.U6
517.90

17.966oW
J»096092

IJ.A 3.05
16,1*66^35

1,260.59

18 .50I .62
3

Bent

Office and other supplies
Printing and stationery
Telephone

U.83U.16
U .5B.N5

Telegraph

Poe tags
Ixpres ^a^s
Misoell \neot*s
TotAi exclusive of
of currency
Federal H^serve Currency
Original cost* Inc.: sding shipping charges
Cost o* redemption, including shipping charges
Total Curr« rt Expenses

♦ 93U.887.U6

2.13U.77
660,19

6. 86707**
6, 07608!
740.33
. 2.102. 87
S7.ia.5fc

—

56,934,52

10,307. lU

JUL 21L 2I_
952.t99.93
13M 2 .il

•Other thru those cornsjted with aorernors* sad Agents'
Conferences and meeting* of Directors and Advisory Connell



Combined
__ i2£2__

18,601.12

5.H9M5
18f
U21ol9
63.01133

ll»OU7oU7
>3.322,8U
939 .
6

2

1

.U

7

27.838.72

lU.162,51
86.306.27
17. 370.17
7.655.99
90.00

19 .U02.US
19.369.73
5,120,03
17.817.U3
63.880.U1

8.398.73

U .813.95
7
977.972.55

20.992.08

Combined

j m . ___
$ 129.360.5s
357. 8U
9.06
28,62U.lU

79i06U„75

UU3.5?
210.25
1 .112.53
7.UU5.79
28,057.79
23.136.58
27.U93.76
29.10l.6l

13 .391.U5

85.6U3.05
19.56l.8U
9.390.90
19.901.38

25J 22.U5

5.30U.08
19.971.66
61,876.25
8,UiU„91
32.U
68.01

l,0i3 ,iU6.Ui

79.0 *2.17
2 7U5 ^6

♦ 87»12 1 „5U

- .1 .509 83

3U .117.33
1.U8 2 .U
1

$1,022,009.00

$i,ooo,U7U.U6

$l,Cfeg,7U6.15

d o u b t s i jlodbd ih miscellaneous k p m s s s

&98&1, transportation— car far®
Local transportation— taxi hire
Post office ©ox aaii postaga-meter rental
Newspapers, periodicals, books, blndls«g, etc.
Collection charges and, protost foes absorbed
Clearlag housa membership doe®
Supplies furnished member banVs

Copies of

bassk examination reports
Commercial agency credit reports aad services

Employees’
photographs
Medical service mad physical examinations
Cafeteria (Hot expense)
Sntertaisiseent of bankers and ©the?® not in banks employ
Officers* dinners

Employees1 dinners
Bmployeeef educations American Institute of Banking
All other

Federal Reserve Club
Membership dims and donations a
American. Bankers8 Association
State and other bankers* associations
Credit msn*s associations
American Acceptance Council
American Society of Agricultural Sagineera
Twin City Bank Auditors® Conference
Tax Payers8 Association
Minneapolis Police Benevolent Association
Minneapolis Fire Department

I n tentional Sheriffs* & Protective Officer*1 Association
National Industrial Coherence 3oard, Inc,

Montana Wool Growers Association
Ohristnas donations
M* te> d Mailers Bureau, Ins,
Ticker Service

Counterfeits a & d discount on foreign currency
Abrasion on gold coin

Miscellaneous expense in connection with closet banks
TOTAL MISCJSLLAllSOUB V P O
K SB M




6.996*75
¥+9 .0 0
18.25
3 2 .0©
6 ,0 0 3 . m
379.9**
gg.l6
096,00
1 ,2 0 1,0 0
578.25
2 ,6 2 5 .0 0
300*00
2 50 .0 0
785.00
30 0,00
1 5 .0 0
U5 .0 0
7 3 8 .5 0

Helena
1929
$
3.00
696.1*
6 1 .0 0
1 7 5 .9 5

Confined
192?
$
63*57
X ri07o30
H1 2 . 5 0
9 0 1.6 6

12.00
15 6 .0 0
U9 .5 3
U2 .2 5

s u s .o o
75.^5
3 9 2 .0 0
1 ,8 15 .^ 8
z tz M
H g .2 5

321.75
H6.00
35.50

131.95
69.00
250.06
1 5 .0 0
U2.0C

8 8 8 8

Rental of furniture and equipment
Repairs and nalntenaas* of furniture and eq^ipineat
Outside protection, vault inspection, time service, etc*
Outside cleaning services0 water supply, and ofcher misc. bank9 house expense
g
Licenses and porsdtse

Minneapolis
- 192 9
$
6O .5 7
k io M
3 5 1 .5 0
1 2 5 .1 1
17.29
SH6 .0 0
15M
360,00
1,6 5 S M
232.95

g ’S S
S

vmaz%Q syxmm's showieg

2.50
59.50
36 .0 0
2 1 6 .3 3
U0 7 .9 2
,13.756.72
JUl,212.97

"lESSST-*!

Combined
1928
4 12S.3U
1.058.83
188.50
832.07
38.50
775.75
178.U?
237.00
l cS79o3U
235.33
19.00

7.3H5.50
% 5 .oo
53.75
. 32«00
6,003*i$
5H.«
S S 0I6
9650OO
l e2 0 1 o00
57S.25

7,515.50
%7.50
%.50
1 6 1 .0 0
5,989.07
1H7-35
13%.90
100.7%
288.00
Ujl.Hl
3,098.00

3 1 5 .0 0
2 9 2,0 0
7i5.oo
30 0 .0 0
1 5 .0 0
U5«o®
7 3 3 .5 0
1S©«00
2 5 .0 0
50 .0 0
10©«00
2 .5 0
59o5©
36 .0 0
21^.33
**0?.§2

3 1 5 .0 0
292.00
185.00
30 0 ,0 0
15,00
1 5 .0 0
S3 6 .S.
100©0@

. . i3 .7 5 6 .7 2
$3,32S.&

Confined
1927
I
83*05
1,156o70
l6 3 o00
8^1c55
23o50
730.05
576*15
3 12 ,0 0
l #968.te
3*w.33
1 5 ,0 0
8 ,008 .50
Wi.oo
HloOO
3 o00
7.223*1
#
93.%
7 0 5 .10
353*75
836088
2,301.75
3 1 5 CO
509,60
250c
300,00
15*0 0
810.93
100,00
50,00

60*00

15 0 .6 6
7,0S».0C
lU„572,9« .
ff7.a3.95

fiOcOO

88,1$
. .5 9 3 .68.
3

EXPENSES

At Minneapolis 1934,887043

$ 1 ,0 3 3 ,009o00

Helena

$87,131o54

At the close of 1938 it was stated that our 1939 total expense
would quite likely show an increase of #35,000 over the 1938 total»
actual increase has been just under J33j,000o

The

While the net result has

been close to estimates, one item especially has been much heavier than
expecte&o

We refer to the cost of our Federal reserve notes which reach­

ed a figure $30,000 greater than anticipated*

Eliminating printing and

redemption costs of notes, we have a reduction of $38,351*08 from the
1938 expenses*,

Of the above reduction 131,310=93 was obtained at

Minneapolis and $7,140o15 at Helenao

The causes for reduced and increas­

ed expenses will be explained in taking up the various items comprising
our expense classifications
The unusual condition that exists as regards our note costs and
the outcome of our suit for reduction of taxes are the chief elements
in the way of making estimates of our probable 1930 expenses« In any
>
event, we can see a material reduction from the 1939 costs and with
reasonable good fortune the decrease from the previous year may be as
much as 150,000*
SALARIES

$ 553,390.57

Payments to Clerical Staff - net decrease $4,133*58
"
H Non-Clerical
H
7.673 e03
$11,804761
Payments to Officers
« net increase
280o13
Payments to Guarde-Watchmen
w
w
1 a363076
Net decrease
10,131*73
OFFICERS 8 SALARIES

$ 117,783*38

Salary increases granted to the Officers as of January 1, 1939
amounted to $8 ,000*

This amount was offset in part by the lessened

payments during the last half of 1339 on account of Mr. Moor?ns resigna­
tion in May„

An adjustment to Mr* Zieraer as of May 1 and the change in

allocation of part of one of the Branch Qfficerfs salary made a net in­
crease of $380«13 in payments to the officers over the previous year*
There was a net difference of $40,304 in the yearly pay-roll
basis at Minneapolis during 1939, quite a number of Senior employees
leaving.

Altogether 46 persons left our employ and * e made during the
*

year 39 replacements^




The salary basis of the persons deletea was

20

£3U>Efc*&£

{ZonVS)

#62,956 and the yearly salaries of the new employees amounted to
#32,652*

At Helena the number of the personnel wa6 unchanged but the

yearly pay«roll basis decreased $400®
On January l t 1929 salary increases to the clerical staff,
,
guards, building employees, etc*, were #18,570*,

Through the changes made

during the year this amount was absorbed and the total pay-roll for the
employees was brought $10,441e85 additional below the similar total in
1928 3

For the past three years consistent reductions have been made and

we are quite confident the results in 1930 will be satisfactory®

The

number of foroed eliminations in 1929 was quite small, many of the changes
being due to employees receiving opportunities with other concerns
Over a period of three years we have placed no new employees
on clerical work at a salary in excess of 4100 per month*

Our Welfare

Secretary, one or two building employees and a closed bank representative
were the only persons employed at a salary in excess of that stated,

Most

of the additions to our staff have been young boys at the minimum wage
scale*
GOVERNORS* CONFERENCES
FEDERAL RESERVE AGENTS 0 CONFERENCES
FEDERAL ADVISOR/ COUNCIL
"

$ 567.36
319 086
l,395o55

The expense of Governors 1 and Agents 1 conferences was less than
for previous year, an extra meeting of the Governors having been held
in 1928 to attend Governor Strong*s funeral at New York.
conferences were attended in 1929®

Only two Agents

Advisory Council meetings in 1929

were five in number attended by our representative*

In addition, we

paid an assessment of $300 covering* our portion of the payments made the
Secretary of the Advisory Councils.
DIRECTORS MEETINGS

$ 6,563.55

Above amount covers all meetings at Minneaoolis and Helena of
the members of the Executive Committee, who are paid, as well as all
monthly directors meetings*

No directors1 meeting was held at Minneapolis
1

in February or March 1939 and no meetings were held during the year at
Helena*

Of the above total, #735*00 represents payments made Executive




21

EXPENSES

(Contd)

Committee members at Helena, the balance being fees paid at Minneapolis 0
The total paid is $230 lees than in 1938 and $882 below the payments
of 192? e
>
TRAVELING EXPENSES

$14,71So35

4 substantial decrease in our traveling expenses was obtained
during the past year, the net reduction being $5p430c04o
similar expenses were f?8,057c79

In 1927

Traveling expenses at closed banks

aggregated $7,426^33 fox the year and these amounts are recoverable
from the trusts

In 1938 that portion of the traveling expense at

tributed to closed bank work was #11,338 77*
ASSESSMENT FOR FECERAL
RESERVE BOARD EXPENSES

119,435 IS

Although the monthly assessment, for expenses of the Federal
Reserve Board was lees during the last half of 1929 than during the same
period of 1928y the total paid by us fox the year wag $502>48 in excess
of the 1928 paymentB*

Based on the assessment rate given for the first

half of IS30 and allowing for the increase in our Capital Stock and
Surplus on which this assessment I* imposed* our payments for the first
six months of 1330 will be $S?9C42 le&& than for the corresponding sis
months of 19280

The amount to be charged to expense ea«h month for

the next six months ie |l,518o06
MESA L FEES

|17,077o35

A marked reduction is noted in comparison with the fees paid
in 1928a

This decrca.ee has amounted to #10*761y37*

naid in 1929 regular fees of counsel were #13?600e

Of the amounts
Matters in connect­

ion with closed barks cost $3*580* in fees made up of numerous small
item*? some of which were paid cur regular counsel and the balance to
attorneys at clcaed bank pointgo

In the previous year we had paid out

heavy fees covering the Hugo B^nk case and also $3,750 as a retaining
fee and witness fees in connection with our tax suit.-,

During 1929 no

special fees were necessary but $850 was paid members of the Real Estate
Board for appearing as witnesses before the State and County Boards
during the tax hearings*




EXPENSES

(Contd)

INSURANCE
# 30p755o34
(Other than on currency
and security shipments)
Paid by Minneapolis
#36,978e53
Paid by Helena
# 3,773071
The above payments cover all types of insurance other than the
premiums paid on mail insurance of money and securitieso

Our primary

blanket bond for #l,000p000 and excess bond of #500s000 make up #209000
of the above total *
one- eighth or #3j,500o

Of this amount Minneapolis pays #17 500 and Helena
Our lorkmencs Compensation policy costs #694. 03

yearly; Public Liability #951ol3; Fire Insurance #800*00; Auto Liability
#47So92o

These are the more important payments at Minneapolis with

similar policies at Helena for smaller amountso

In addition, the bank

carries one policy on the lives of its employees for which approximately
#5,100 per year is paido

Another policy of the same character is partial*-*

ly assumed by the Bank and the return premiums or dividends all go to the
Bank0 After allowing for payments made by employees and dividend re~
ceivedj the actual cost to the bank over the past year for group life in^
surance was #3,363c
INSURANCE ON CURRENCY
AHO 8EJUKITK SHIFiUSSfe

$ 14,808.54

Expense of this character shows an increase at Minneapolis of
#7 41c 43 over 1938 with #95o39 less expense at Helena,

shipments received was much heavier than in 1 9 2 8 0

Total of currency

At Minneapolis alone

2, 500 more shipments of currency were received than in the previous year a

Shipments made showed an increase of over 3 .,100c

While packages contain

ed an average amount less than in 1928, the additional number of shipments
accounts for the increase in insurance paymentso

Besides assuming the

costs of shipping currency and coin* if handled under our Policy we ab­
sorb small amounts of expense incurred through handling securities for
our member banksQ
TAXES ON BANK PREMISES
Minneapolis
Helena

$ 75,100c00
3*0280 25

These figures represent the actual tax at Helena and the
Minneapolis approximate amount as we have no definite information on
taxes covering special improvements, etco

Due to the fact that our tax

suit was held over until March, 1930, we thought it beet to reserve the



EXPENSES

(Gontd)

full amount of the payment based on the valuation fixed by the State Tax
Commission.

For this reason the oharge to Expense was increased during

Octoberp November and December®

We will reserve approximately #6^000

each month during 1930 until the final amount of our tax is fixed by
Federal Court 0 This will probably result in a lower charge to Expense
during the last half of 1930o

Reserve being set aside at this time at

Minneapolis is on a basis of $2,500,000 valuation with the rate O0751
millso

The valuation at Helena has not been changed, the increase in the

rate causing the small additional payment in 19&*°
LIGHT. HEAT AND POWER

$ 17,986o84

This expense is below that of a normal year but greater than in
1928 because of the reduced amount of fuel oil used in the previous year,
In 1929 we purchased 140*232 gallons of fuel oil at a cost of #7,436*60o
During 1928 we paid #6,328o71 for 110^321 gallons of fuel oil 0 Light and
power costs were practically the same as in 1928, the cost being $9?324o78
in 1929 and |9,354d2 one year ago«

Oil purchased for the year previous

to October 1, 1929 was on a basis of 5®94 per 100 gallons which was an in-«
crease of 25# per 100 gallons over the 1928 pricee

Since October 1, 1929

our contract price for one year is #4o60 per 100 gallons which should mean
a saving during 1930 of #1,000 based on the same amount of oil consumed
as in 19290
At Helena much less fuel was purchased in 1929 due partly to
heavier purchases made at the close of 1928o

There was also some reduct­

ion in 1929 for light and power consumed:,
REPAIRS AND ALTERATIONS
BANKING- HOUSE
Minneapolis
Helena

$ S r579o02
‘
517o90

These costs are not high and are #559o0? less than one year agoQ
Of the total paid at Minneapolis #2,166 represents payments made the Otis
Elevator Company on contract for maintenance of elevator equipmento

The

largest payment of the year was #2,480 to the Eagle Iron Works for 3
hydraulic door lifts used on the door at the front entrance and on the
garage entrances*

An addition was built to the smoke stack on the builds

ing at a cost of #514 for material and labor 0 Fire brick for boilers and



JXPM3I8

(Contd)

work on sewer connections called for other smaller payments*
At Helena $500 was reserved for cementing one of the outside
walls of the building and for some further grille worke

This work has

not yet been completed*
OFFICE AMD OTHER SUPPLIES
$ 18,503o62
Minneapolis $17,243o03
Helena
I p260®59
Considering the fact that we were called upon to make heavy pur­
chases of supplies in connection with the replacement of the old currency
by the new small eize notes9 we feel that a reduction of $900 in the total
amount expended in comparison with last year is very satisfactory^

This

is the lowest total for any year since taking over this building and the
broadened duties of a Sub-Treasury«
reductions in the yearly totalo

The Branch has also shown consistent

Some part of our reduced expense is due

to a falling off in volume of some functions^ but a closer check on sup
plies and careful buying have brought resultso
PRINTING AND STATIONERY
$ 18,601.12
Minneapolis $lSp46"6a35
Helena
2jl34077
The net reduction for the year has been |768e61 which follows
a reduction in the previous year of $5i,953o72„

Some of the changes made

in forme during the previous year helped reduce the total costs in 1939 o
As an example the falling off in volume of check collections would be
equivalent to approximately one week's work*,

The quantity of supplies

and forme consumed in one week would not cost in excess of $125«

The

actual value of supplies and forms used in 1S29 was $6?054o04 or $l?849o59
less than the similar costs of 1928.
In the Currency and Coin function the value of supplies used in
1929 was |5p626o59 or $1,067®34 more than was required in 1928,

These

two functions create a large portion of the expense for supplies and prints
ingo

Improvements which have been brought about in our accounting methods

should result in further lowering of expenditures for printing and sta­
tionery in 1930o
At Helena the total is $344,82 less than in 1928 when more sup^
plies were purchased at the close of the year and carried over into 1939
The Branch has not the opportunity to get some of the price concessions



EXPENSES

(Oontd)

we obtain at Minneapolis, but give close attention to the ordering and
consuming of supplies»
TELEPHONE

$ 5,494*35

The total of this item does not change to any great extent from
year to yearc No change has been made in the service rates but more use
has been made of the phone for distance calls by Minneapolis and Helena
than in 1 9 3 8 «

The increased expense over 1938 is $374o00o
TELEGRAPH
Minneapolis
Helena

#ll,553o45
6 P867074

$18,431c19

The Helena total wire expense was the same in 1939 as in 1938
the difference of |603 affecting Minneapolis figures only«

All of the

Branch expense is incurred over the commercial wires and the costs of daily
wires to Minneapolis and Washington change very little over a year period0
The volume of service required by the Montana members regulates the total
expense assumedo
At Minneapolis we paid $7 9136a08 as leased wire rental in 19390
This charge is based on the number of words we sent in relation to the
total number of words sent by all the Federal Reserve banks,
tion in 1939 was #574„55 greater than in 1928®

Our propor«

The number of words sent

by us during 1939 was 439.214 or 36,338 more words than in the previous
year*

While we have not the final cost basis 9 our per word charge over

the private wire system will be approximately 3o35 cents per word in com*
parison with a per word cost of 3 =>17 cents in 1938c
POSTAGE
Minneapolis
Helena

$56,934o53
6,076,81

# S3,011o33

At Minneapolis the increase of #790o77 over 1938 expense reflects
the greater amount of postage costs assumed in connection with currency
shipments as there was a reduced amount of postage required for coin ship­
ments and in transit worjc
was

#

Postage costs on currency sent and received

16* 773e 44 or $2,387*48 more than the similar expense of 1938,

Postage

used on coin shipments was |4f333«73 or $785086 lees than was reauired one
i
year agoc

It is expected ^hat the lessened weight of the new small size

notes will more than offset any increased volume of shipments during 1930,
We have also found that the increased use made of the postage meter has



EXPMX8E8

(Contd)

assisted in keeping down our oocts.
The amount of postage purchased at Helena was #1,659085 less than
in 1938 0

Nearly $19300 more postage was bought during the last quarter

of 1938 than in the corresponding period of 1939 so that the carry-over
cl postage into 1939 was greater than normal0

There also was some falling

off in the amount of postage used on currency shipmentso

$ ll,047o47

EXPRESSAGE

Costs of this character are approximately # 3S700 greater than in
1938o

All the expense of operating the banfc automobiles at Minneapolis

and Helena is included in this item and is heavier than for former yearso
The principal cause for the increase however„ lies in the heavy volume
of incoming coin and small bill shipments from member banlcs0

It may be

possible with the small size bills coming into general use for us to es *
oape some of the heavy express expense by having the banks send more
currency to us by mail.,
CAFETERIA (Net Expense)

# S,003o88

The above amount is absorbed by the Bank and does not include
any charge for space, light or equipment®

Cost of foodp service and ser­

vice supplies in 1S29 was #17,t7$c93 with total receipts from employees
amounting to f11,173*04.

Under Federal Reserve Board authority we may

assume one-’
third of the total cost or #5,735cS4o

Ways and means are being

considered to bring the amount assumed by the bank down to the proportion
authorized in 1930c
FEDERAL RESERVE CURRSKOY
Original cost and shipping charges #79,643*17
Our estimate at the close of 1938 for printing charges in con­
nection with the new small size notes was #60,000o

We had no means of

knowing just what proportion of our order would be completed in 1939 as
the requirements furnished the Bureau of Engraving cover the Government
fiscal year and are usually issued 18 months in advance of needso We are
estimating a printing expense of #50,000 for notes in 1930 and this may
be low 0 However , it is certain our next order will be very much reduced,
Excessive printing expense this year will simply mean a greater reduction
in these costs next year knd following years.



Further parul&>'jlars

gXPggggg (Contd)
our notes issued will be given elsewhere In this report*
FSDERAL RESERVE CPRRK30T
Cost of Redemption-shipping charges
•••

■

$ 2,745.36

7-

Part of this total is made up of amounts set aside monthly to
pay the redemption expense bill presented each year at the close of the
fiscal year*

Until the retirement of the large size notes is completed

our redemption costs will be higher than normal*

We have recently been

setting aside $150 per month for redemption purposes*

This will be in­

creased to $250 per month until we have more definite knowledge as to
our costs.

Shipping charges make up approximately $ 1 5200 of the above

expense and this item will also show an increase for 1930o
MISCELLANEOUS EXPENSES

#37Q318.96

■Y in H ^ p o T is ' m
,'SSS 78B I. 09

Helena

2,1096 87

The items comprising our miscellaneous charges are listed and
most of them do not require any explanation,.

Those expenses in connect­

ion with which further information might be helpful are more fully de­
scribed*
Repairs to furniture and equipment cost #1,107®30 of which
$696*44 was paid at the Brancho

The Helena office payments are large in

proportion because the repairs to adding machines are made under a con­
tract with the Burroughs Adding Machine Company

At Minneapolis, apart

from the repairs necessary on special equipment, the repairs on all other
machines are attended to by our own mechanics®

For our water supply ?

cleaning of rugs, etoe, we paid #901c66, most of this item being for City
water*

Car fare cost $846*00 during 1929,*

This covers cost of present­

ing local collections, and protest items9 allowances for clearing itemB de­
livery in St® Paul, as well as other minor items requiring the use of street
cars. Newspapersp books9 periodicals for our library and recreation room,
binding of old records, etc 0, cost |1P815048 during the past year*

The

cost of copies of reports of bank examinations furnished Minneapolis and
Helena offices by the National and State Bank examination departments re­
quired an expense of #7,318«50 or #200 less than the amount expended in
1928. Amounts paid for the entertainment of visiting bankers during the
year were §379094 at Minneapolis and $131095 at Helena. For the banquet
given Mr. Moore at the time of his resignation, we paid |896* In common with




EXPENSES

(Contd)

the other Minneapolis banks, we contributed to the educational program of
tie local chapter of the American Institute of Banking*

Our proportion

based on the number of employees eligible for the educational courses
wae #1,201*

For other educational purposes we contributed $578025 for

the benefit of employees»
Contributions to the Federal Reserve Club were #2,635 at
Minneapolis and $250 at Helena, the funds being used for the annual picnic,
dancing and card parties and for prizes in various kinds of athletic ac«
tivitieso

Dues and donations to the amount of $2,827o50 were made various

organizations from which we obtain direct and indirect benefits such as
Credit Men’ Associations* Tax Payers* Association, American Bankers® and
s
State Bank Associations*
Miscellaneous expenses paid at closed banks in the collection of
paper and to protect our interests were $13,756o72o

Of this amount

$12,034o99 was paid to collectors in lieu of salaries and traveling ex«*
penses*

This arrangement hastened the collections, lowered our yearly

salary basis $7,900 and eliminated considerable traveling expenseo
REIMBURSABLE EXPENDITURES
ACCOUNT FISCAL AGENCY OPERATIONS
The Treasury department reimburses us only for expenses incurred
in connection with new issues of Un So Government securities. All other
costs of our operations as Fiscal Agents of the United States are absorbed
by the bankc.

The following table shows expenditures for which we received

reimbursement during 1929c

These figures are not included in our statement

of expenses«




Salaries-Officers - - - - -

-

# 4 P499099

Salaries^Employees

9 ol07«00

Printing and Stationery

2*040,83

Telephone

449c55

Telegraph

379 o12

Postage

355 o5&

Furniture & Equipment
Total Expenditures - -

_____ 70CQQ
$17,401e99*

•This amount includes ffar Finance Cor­
poration Reimbursable Expenditure
$ 176-35

29

ACCOUNTING
During the past year several important changes were made
in the accounting methods9 reducing the volume of entries on our
general ledger* member bank books, and Federal Reserve Bank aooounts*
Early in 1929 we discontinued a Suspense Account used for
deductions by other Federal Reserve Banks for items returned to ue
and our member banks and other charges, substituting the plan of
crediting the *Due From Federal Reserve Banks * accounts direct,
1

This

eliminated approximately 75 entries daily from the general ledger
and made it unnecessary to make out entries upon receipt of the
statements from the other Federal Reserve Banks covering the charges.
The former plan of handling deferred credits to member
banks for transit cash letters received, was changed to a system
similar to the handling of cash letters between Federal Reserve
Banks.

This has reduced the postings on the member bank

books approximately 150 entries daily and a like amount on the
daily statements.

Besides the reduction in the postings on the

member bank accounts and daily statements, this plan has reduced
the number of listings necessary to prove the Deferred Credit
account between 300 and 400 items*
We have recently discontinued the making out of debit
entries to our Due From Federal Reserve Banks accounts covering
cash letters forwarded direct by our member banks for their credit
on our books.

By using the advices received from the member banks9

(on forms provided by us) for the entry to the Due From account„
we have eliminated the m a M n g out of some twenty entries daily
and avoided the duplication in the files*
The first of September we began returning oaneelled
drafts daily to member banks„ a system used by several other Federal
Reserve Banks.

This plan returns the draft with the statement in­

dicating the charge and also allows the issuing bank to pass on the
endorsement shortly after payment by us*

At the same time we adopted

the system of filing member bank entries by accounts rather than
by entry date®




AOCppgTJgg

(Con fcd)

In order to reduce costs of advising member bank*? of
routine and minor chargee and credits to their accounts, form® have
been provided which, in one writing, provide the advice to the bank
aud the debit or credit entry*

Besides saving clerical time former­

ly required to make the entry and also to prepare a form letter or
advice* these forms have avoided filing duplications and improved
the information in the entry fileeo
In order to expedite the handling of Reports of Net De­
posits received from member banks and to improve the services render­
ed banks with deficient reserve balances, a complete change was made
in our handling methods of Net Deposit. Reports and the calculations
necessary to compute reserve balances carried.

Banks with deficient

reserve balances are now advised promptly of their deficiencies by
a statement indicating daily balances on our books, daily required
reserve balances, and the amount of the shortage with the penalty
also computed,

These statements have helped the banks to realize that

their reserve mast be maintained on our books and that adjustments
should be made in their book figures for items in transit, etc*

^any

of the banks have been able to escape penaltic-s, as by being promptly
advised of their shortages, they may quickly provide the funds to
offset the shortages„
In addition to improving our handling of reserves, we
have over the past few months made a thorough analysis of the method
used by each bank in calculating reserve requirements.,

This was

done by sending out a questionnaire, checking the Reports of Condi­
tion, and writing several hundred letters*

The results were gratify­

ing as reports are now being made more uniformly and we have been
able to show quite a number of banks that they were, through over­
sight, keeping mare reserve than w&e required*
With the present plan of filing member bank entries by
accounts, we are able to reduce the number of copies in several of
the forms in use in the office, eliminating the correspondence file
copy as the entry to the account may be readily referred to»

This

reduces our printing and stationery costs ar.d also saves file space,




ACCOUKTIHG (Continued)
Ey changing the destruction schedule and method c? handling tele­
grams, we are able to save 72 feet of filing space yearly and
eliminate the further need for purchasing files„
During the year a change was made in the form of records
prepared for securities forwarded from the Fiscal Agency Department6
By making use of a copy of the form accompanying the securities, an
additional writeup to obtain a delivery record was avoided.

Certain

changes were also made in the form which increased the amount of in­
formation recorded but deoreased the number of operations necessary
to indicate the description*
On Hovember first the redemption of the old size National
Bank Notes on a large scale was undertaken by the Hational Bank
Redemption Agency 9 Washington, Do 0 . As the Five Percent Redemption
Fund would be inadequate to handle the rapid retirement of the old
size notesc arrangements were made to telegraph the charges for
redemptions to each Federal Reserve Bank for their member banks p
the Federal Reserve Banks depositing the amounts the same day for
the credit of its members Five Percent Redemption Fund and charging
the members* accounts*

By making special entry tickets covering

these charges, we were able to handle this increase of work without
additional help from outside the department*
A unit of the Accounting Function is known as Planning,
The operations assigned to this unit by the Federal Reserve Board*s
expense manual includes all work incident to the preparation and
standardization of accounting forms, and the distribution of pro~
cedure and operating instructions. We have been successful during
the last few years in constantly reducing our costs for printings
stationery and office supplies thru a constant check of our purchases
and also a study of the uses made of the forms 9 etot The savings
.
made thru changes are reflected in the reduced costs of the various
functions but no expense of this unit is allocated to the other de­
partments o
A large number of minor changes are constantly being made
which tend to reduce the time necessary to perform the numerous
operations of the bank0 as well as other costs* direct and indirect®




AUDITING FUNCTION
(Tfinneapolis only)
The results of our audits during the past year indicate that
the operations of the bank have been properly and efficiently conducted,
So defalcations or irregularities were disclosed®

Any differences found

in the accounts were due to clerical errors and were of only minor im^
portanceo

The records appear to reflect the true condition of the bank
Through a reassignment of certain official duties due to the

leaving of Mrc Moore on May 1„ the Controller^ duties were broadened
to include supervision of the Accounting and general bank operationsc as
well as the Auditingo

This change has made possible a reduction in the

administration expense of both the Accounting and Auditing functionso
In addition to the above change9 one senior clerk was trans­
ferred to closed bank work and another senior man was replaced by a lower
salaried clerko

As a result of the changes mentioned* the audit expense

for 1929 has been $24s459092 or $3,580o08 less than was estimated for the
year and #3,774055 less than the 1928 expense^

After carefully estimating

the audit costs for 1930 we are able to offer a budget of $22p390o00 or
a reduction of over $3 OOOoOO from the expense of 19290
The Audit force as it stands at present cannot be further re^
duced unless there is a heavy falling off in our operations 0 Verifica
tion work in connection with securities has increased and on major audits
we find it necessary to use additional employees from other departmentse
Care is taken in the selection of the extra persons used and the thorough­
ness of the audit is not interferred witho
A comparative statement of the number of employees and cost of
operating the auditing function for the years 1929 and 1928 is given be­
low s
1929
Number of Officers
073
Number of Employees
8o35
# 5,500c00
Salaries? Officers
18,218c96
Clerical
175o43
Traveling expense
305«88
Stationery and supplies
9 081
Telephone and telegraph
Postage
All other
Total




lo00
9 C29

1928
I 7,OOOoOO
19,263*38
425c37
8o77
131.41
4 0 f066
1ST;234.47

BArn PBBi;g»S BBPQBT DBOatBBB 31 1929
n m n m m M
l m
f f i m o

m a a ijn p .
Original coat of land, Including
buildings* if any . • . . ...........
Incidental expenditures connected
with purchase > « a « « » o o o < « «
Total a e o o * o o o o » o * o o n o o
Less proceeds from ea la of salvaged
tnaterial • * • » ° ® * « • • * • o o
>
Coet o f building s it # * « '* *. .. .. • « .
,

$ 600,000,00
...... ^f»463 i B .
cj6.
^ 602^ 488<i 66
t

lp 943^00
600c 520,66

$

3*000*48

mmssL
Preliminary expenditures . 0 0 0 • « .
Cost of construction*8
Building exclusive of vaults
A fixed machinery & equipment „ •
fault constructions, including
any additional structure or
foundation nade necessary by
vault* and vault equipment < * » *
>
Fixed machinery A equipment e . » $623e965055*
Less sale and charge~off of
2 mechanical coal stokers
(Original cost $1*956 each) 0 - •
8,912.00
Miscellaneous building construction ex­
pense incurred by Federal Beserve Banks
Fees A Expenses* Architects * . « ■ .
*
Xngineers » ,-«,<. »
TaXeS » o 0 a 0 0 0 a o .o oo o o oo o
f e i S i dB&Q O o o o o a o o o o o o o o o
O
Cost of new Building * * »• , . • «
-v
Cost of building A building site : « * *
Charge-offsg •
Depreciation allowances 0 * * a 0
Taxes 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Maintenance „ o o <
$
* * < 00
>
TOtitil a o » o
o o
o o o o
Book value of property « o » » • * *• •.
0

0 . 0

0

0

0 , 0

1,730*065,37

323,750,54

620,0530 55
148^027,79
15,,846o00
74(|350o00
........ ^1 ^^05a6$
f2.936. 799,39
f3*537*320o05
l*037,408o68
74* 350a00
. -.\J?^5^6_6_. ?^&
£.' >\.^33^j4^4a_34 _
- ^‘
^
$204O30855o71

MIMORABDA
Beserves against depreciations
Building
Fixed machinery and equipment
Total 0 . . . . . . . . . . . . . .
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0
0

o

$ 128* 328015
(a) ___323,;450,28
$ 450* 778043

Floor spacas
(a) Occupied by Federal Beserve Bsnk 0
(b) Bented • • - . < • • • • • • • • • • o
(o) Unoccupied 0 0 0 0 0 0 0 0 . 0 . 0
(d) Total floor area in building 0 „ 0
(A) let after charging off $782,40 which was previously
rsserved as depreciation on coal stokers*
• Includes $100*000 of architects feee and expenses.




124,739 Squ
0 Sq

0 Sqo

124*739 Sq,

BmisMiaoeaaoi£5«ip..3La929,
J e d w l Baser™ Brunch B^lr »t

.^

Montana

Original cost of land and building
15r000,00
Cost of remodelings
Building, exclusive of vaults
and fixed machinery and equipment * * 0 * « o « « • » 57,, 642,93
fault construction, including
any additional structure or
foundation made necessary by vault
9s266,00
Vault equipment, including doors®
lining* and all Interior equipment „ . « * » o » » 8 66s580 53
Fixed machinery and equipment * » • . . » * * . » . a 16,108,99
i

fee*8

Architects • o » o q o o o • * o o© o o o a
o >
Contractor^ Commission
A

3

ft«»o
.

5 1 43 357
7,442.12

iOiiii.,1 COSt p o * o o o o a s e Q » o o o o a « o a a o o a $ 17714?4o 14
Less proceeds from sale of salvaged
'-tk p . t., $ .£ 2 , £ i . i

O

o

b

O

0

a

o

O

a

O

O

O

O

o

O

9

O

O

0

O

O

O

....................................

Cost of building and building site 0 0 » . • o . . « . a aS l 7 7 a399?14
Depreciation allowances charged off!
Charged to current net earnings . . a * » . . • « » 0| 21 a290,15

Beserves against depreciations
l3v-iXding 0 3 0 8 0 0 0 0 0 0 0 0 0 0 3 0 * * 0 0 0 0 $
fixed Machinery and Equipment „ „ 4 , „ , 0 0 „ e . 0
,
Total

780Ol3j :4
12,818 03

. . . o . o • o . o * * . o o o . o , . *$ 91*436,77

floor Spaces
Occupied by
HQStCd 9 0
Unoccupied
Total floor




f, E, Bank
0 00 0 0 0 0 0 0 0 0 0 oooaoooeo
ooooooaoooo»oooo«Qooo
area in building „ • . • » » . « » * » •

4700
f
0
4700

Sq3 ft
Sq0 ft,
Sq<, ft
Sq0 ft

75 tQQ
f

BASK PREMISES PEFRBCIATIQB
MINNEAPOLIS

Charge-off of land - 1919

f1000OOOoQO

Char^' =offe of building (including vaultD but excluding fixed machinery
and equipment) to reduee book value to estimated replacement cost:
Taxes on building during period of construction
1922 - -------- -|
5,200,00
1923
14*769 ©00
1924
54pS90o00 $74,350.00
Cost of maint >nanG3 during period of construction
1923 C30eocKic»(K>e=»ooavaoe*»ai>c, |
a
2 j>101 o93
1924 - - - - - - - - - - - - 1906Q5o75
Charge-off of construction co3ts
1920 --------------------- - $
1921 - . * - - - --------1922 - - - - - - ------------1923 --- --------- - - ,---1924 - - ---- - - - - - - - 1926 < = > < = « « . ------ - - - .
1926
57,438,64

21^705066

100p000«00
3*381o40
8 C446,87
20,361*04
219p316o89
30,463o84
437g408o68

533.464,34

December 31 0 1927 Transferred from surplus to reduoe book value of
building - - -------- - - ------------

500P000e00

Reserve for depreciation on building
1925
--------------------------------- ---- 38 3814*40
1926 - - -------- ------------ ---------------- 32. 516.86
1927 - - - -------------------------------- ---- 5,665.63
1928 -------------- - - ---------- - - - 25,666.63
1929 - - - - - - - ------------ - -------- ---- 25„665063

128,328,15

Reserve for depreciation on fixed machinery and equipment
1924 - - - - - - - - - - - - - ---------- 12p814073
1925 - - - - - - - -------- - - - - - - - 52P396o55
1926
-(a) 71p222r>95
1927 - - - ------------------------------------ 62 0005 ©35
1928 - - - - - - - - - - - - - - -------- *
62,005o55
1929 --------------- ----- --------- - - 62 9Q05s35
Total depreciation on bank premises - Minneapolis -

322,450,28
I 10S84

HELEHA BRAHCM.
Charge-off of building (including vaults bux excluding fixed machinery
and equipment) to reduce book value to estimated replacement cost:
1920 -------------------- - - - - - -------21 e290,15
Reserve for depreciation on building
1920 — — — — — — — — — — — — — — — — — — —
56c447 e49
1921
— « — — — — — — — — - —
—
1 ,893 g23
1922 - - - - - ---- - - - - - - - - - - - l P655a37
1923
-------- -- - - - -------- -----1,571005
1924
---------- --------------- - - •
30125.80
1925 - - -------- ------------------------3 f125o80
1926 ------------------------------ - - 2 P700 oOO
1927 --------------------- 2 O700oOO
1928 - - - - - - - - - - -----------------2 0700o00
1929 - - -------- ------------ ------------2 g70QoOO
78,618*74
Reserve for depreciation on fixed machinery and equipment
1922 - --------- - l 061Ct9O
1923 - - - - - - ------ - - - - - - ---- -(b)
1 0541&75
1924 ------- «
------- --------------------1,610 o90
1925 — — — — — — - — — — — — — — — — — —
1 p610 <>90
1926
------------ -- - 1^610 o90
1927 -------- -------------------- -- - 1 p610o90
1928 - - - - - - - - - - - - - - - - - - - 1 P610 o90
1929 - - - - - - - - - - - - ---- - - - - -1 061Oq9O
12,818.03
Total depreciation on bank premises - Helena
I
(&) Net after deducting; $782c40 on account of sale and charge-off of two
mechanical coal stokers; (b) Net after deducting |69017 for replacementso




GEAP<

FEDERAL RESERVE S A M

r * *-"

Lw net
COST
| 6 0 T ^ 0 o66
1926 Adjustment of Arohiteotcs
fees o transferred from building
to fixed machinery and equipment

'

OF UISSMPOL1B
jj — w * i
Acst '^r t a w vquiFuem

Building
$2,413*745.84

Fixed atichliiary
and Equipment
Total
$5zSc96505lT
|3 p54T c ¥ 2 o
1
05

100 3 9
000 00

lfH?j4>06.bO

xa>26 Sale and oharge-of.f of two

’
eonanioal coal stokers

JHARQBD OFF:
1919
lSv.0
1921
1922
1923
1924
1925
1926
19-7
Total
Book ralue gross

EZ

isjgf'MPM

1100-,000oOO

tioo0o6o066
^600o520o66

lOO.OOOoOO
3,381o40
11,646087
37p222097
293p310 062
30p463o84
57 D438064
600 pOOO o00
$ID0SSo4gitS4
$1^283,28150

'
-

c■
lYTTSMSi'.^
$620n063o55

DEPRECIATION RESERVE AHD RET BOOK VALUE
Depreciation Reserves
1924
$ 12,814 e73
$38&814o40 ‘ 52 c396 o55
1926
32 *516086
1926
71p222 095
5 d665 o63
1927
62p005 *35
1928
25,665063 ^
62,005o35
1929
26o665o63
62,005o35
Total depreciation Reserves
" 1 1 2 0 2 8 .IS
f&EMsdTfcS
$500c520o66
$101540953„35
Net Book value
i^97eS03e^

Total cost
Charged vff 1920
Book value gross

HELENA BRANCH p FEDERAL RESERVE BANK OF MINNEAPOLIS
CHARGE-OFFS 01? LAND® BUILDING„ AND FIXED MACHINERY AKD EQUIPMENT
Fixed Machinery
Total
Building
and Equipment
Land
$
oOO
|"T5^90ol5
| ifff359,14
”TCl0O7
T
2lD2§67l5
21,390.15
$ 5 O000 5,00
t 156,108.99
$ 135,000o00
$ 1 6 0108o99

Depreciation Reserves

DEPRECIATION RESERVES AND HET BOOK VALUE

1920
192.1

$

I9r?

1923
1924
1925
1926
1927
1928
1929

56 f447 049
f
l,893o23
l 0655o37
1^lcOS
3,125o80
3 0125c^)
2 O700o00

( .)

2 e700o00
2 p700 oOO

1,610.90 *
1,541*73
l 0610o90
l,610o90
l 06 1 0 o90
l 061Oo9O
l p610o90
l 0610o90

1

^ 5 ,'000 oOO

78,618074

# 12 n818o03

$

9 1 c436o77

1

56,381026

4

i

64,672o22

fa) Net after deducting $69^17 .or replacements0
‘




#
•

ZJOQoOO

Total Depreciation Reserves
Net Bc-ck Value

9 t50,7^8„43
? 1 , 9 5 s,67-? 0ie
!

3 2 9 0 096

BANK PRSMISJCg
The total expense of the function Provision of Space (Bank
Premises) was $139,74So80 or $15,500 more than the estimates made at the
beginning of the yearc

When it was apparent late in 1939 that our tax

matter oould not be decided before 1930, we raised the amount we were
reserving in 1929 from $59,000 to $75,100 which accounts for the increase
in the expense over the budget figures«

Our 1930 budget has been fixed

at $138,310 but we hope to reduce the expense at least the amount we
added in 1929«
Changes made about the building were not numerous during the
past year.

Hydraulic lifts were installed on the heavy doors at the

front entrance and two garage entrances®

These lifts 0 in addition to the

one installed in 1938, give efficient and reliable operation of our four
heavy doors instead of the former unreliable system of operation by
compressed air<>
The smoke stack has been extended 20 feet.

This lifts the smoke

from our oil burning furnaces far enough above the roof to stop any of
our own smoke from getting into the fresh air intake shaft*

We had con­

templated installing an oil burner for hot water thus eliminating the
need for purchasing any coal.

However, a heater such as we desire, has

not yet been located,,
Our elevator maintenance contract with the Otis Elevator Company
expires in March next and it is unlikely they will be willing to renew
on the same terms»

In referring to our elevator service, it is noted that

the passenger elevator at the rear of the office gets out of order fre«
quently, necessitating the use of stairs or the front elevatorsc

As our

elevator equipment will require more attention as it gets older, possibly
some thought should be given to installing another elevator in the shaft
adjoining the present rear elevator as was originally intendedo
Fuel consumption was greater than during the preceding year owing
to a l&te cold Spring and unusually cold weather in November 0 Our new
fuel contract signed for the year beginning October 1 gives us the low
price of $ 4 o60 per 100 gallonsc

For a year from October 1, 1928 our con~

tract price was $5*94 per 100 gallonso

Power and light costs have shown

little variation in several years.
Building employees are competent and we rarely find it neces­
sary to use outside labor,



38

a m

m a i m

(Depreciation)

The system policy established by the Federal Reserve Board
to allow the setting aside of 2 per cent only each year as a building
reserve, has been followed by this bank for the past two years.
At the close of 1927 we were permitted to reduce Building Ac­
count $500pOOO, withdrawn from Surplus Account.

Amounts applied against

Building Account to bring the book value down to estimated replacement
cost have aggregated |l1
,033{464o34e
)

The gross book value of the build­

ing proper at the close of 1939 was $l,283,281c50«

This figure covers

all of the construction cost other than the fixed machinery and equipment„
The gross book value of fixed machinery has not been reduced and stands
at $ 6205,0530 550

Only one reduction has been made in land values,that

coming at the close of 1919 when Bank Premises account was reduced
|100?000o

Book value of our land is thus placed at $500p500c36o
In addition to the various reductions made in book value, we

have, over the past five years, been allowed to set aside a depreciation
on the building proper which now amounts to $128,328ol5 or 2 per cent
yearly of the estimated replacement costc

For the replacement of fixed

machinery and equipment we now have a reserve of $322,450«28 or over 50
per cent of original cost*

No reserve is set up for depreciation of land

value as the ground has been appraised at $67,000 more than the original
costo

No replacements have bee** charged against the amount set aside for

depreciation on machinery and equipment but with the expiration of our
elevator maintenance contract, some charges for replacements of parts may
be desirable in 1S30,

The original cost of elevator equipment was

$105,615 and we already have set aside for replacement of thiB equipment
more than $50,0000
After taking into consideration all reserves set aside and a l ­
lowing for the increased value of the land, we still think that the builds
ing and equipment represent on our books a value approximately $600*000
greater than we could realize if the property were soldo

The net book

value of the Minneapolis property is $l,953,077o38®
At Helena reserves have been set up over a longer period but
net book values nevertheless are too high*

The total cost of land and

building was #177,399©14 and through various amounts charged off or re.
served, the net book value has been brought down to #64,672.22*

While

the replacement value of $ 156,108099 appears fair, the Branch property



BAHK PREMISES (Depreciation)
at a Bale would not by a ay means bring the figure shown on the records
as the net book value*
BABg PREMISSS (Taxes)
We were advised late in October that our suit instituted in
Federal Court for a further reduction in our taxes* was being held over
until the March 1930 term as the State Attorneys were unprepared to try
the case earlier*

This arrangement was agreed to by our Attorneys with

the understanding that no penalties or interest should accrue during
the period of litigationc
Although the local equalization board would grant us no relief
the County Board placed a valuation of $2 000$000 on our property whioh
meant approximately $35y000 less in our yearly tax payments.,

The State

Tax Commission placed a valuation of $3,500,000 although they did not
examine our premises which the County Board had done«

On the basis of

the valuation approved by the State Boards we pay $10,000 less yearly
in taxes or approximately $75>000o
It is quite likely our Attorneys would have recommended our
accepting a valuation of $3,000,000 had the State Tax Commission seen
fit to confiim the figure placed by the County Boardc As this was not
done^ we are taking the only course open and are quite hopeful of ade-.
quate results.

We are largely basing- our claim for a lowered valua­

tion on the Heal Estate Board 11s appraisal of the property which gives
a sale value of #367,000 to the land and but $715 000 to the building.
If we are able to obtain a valuation between the amount fixed by the
Appraisal Committee of the Real Estate Board and that placed by the
County Board, we will feel that our efforts have been ouite worthwhile.
Ue at present have an accumulation of taxes charged out of
earningsp but unpaidt covering one half of 1937 and 1928 and all of
1939o

Total reserved to the close of 1929 is $164,019o57o

Of this

amount $20o00 0 represents the recoveries we have made and are entitled
to place in Profit and Loss Accounts
our profits however




No recoveries will be taken into

until the suit is settled*

40

roM itO Ri

a» d

g g u ip u m

Oar estimates one year ago for purchases of machinery and
equipment to be made in 1929 amounted to $24,585 and this total has been
exceeded by $148*00.

If allowance is made for old equipment turned in

on new purchases, we would be well below our budget.

We also stated

that after the purchases determined on for 1929 had been made., future
yearly estimates should not exceed $15* 000 unless some unforseen re­
quirements were Imposed on us.

Our estimates for 1930 are somewhat in

excess of $15,000 but with allowances on old machines deducted, the net
amount expended should be well below the figure for 1929.

During the

last two years we have added furniture and machinery to the amount of
$56*759.46 and nearly 57 per cent or $31f995«82 represents expenditures
for adding machineSo
Some years ago we decided that it was poor policy to turn in
adding machines after 5 years as was customary 9 and still is with many
institutions*

We have sinoe been replacing machines from 8 to 10 years

old when it was apparent that these maohines required too much attention
from our mechanio.

All our old machines are not traded in because we

frequently are able to dispose of such machinery to other banks at a mtch
better value > For old equipment disposed of during the year we received
allowances or cash to the amount of $3,650 whioh is not applied on pur­
chases but credited direct to Profit and Loss®
Furniture and equipment purchased in 1929 for Minneapolis and
Helena is classified belows
Typewriters
Adding* Machines
Adding Typewriters
Filing Equipment
Health Chairs
Machine stands sorting tables?etc.
Welfare and Cafeteria Equipment
Vfeldfast iiaohine
Currency cutting machine
Postage meter machine
Mi scellaneous
Helena
Rebuilding currency cutting machine
Coin Counter
^ater cooler
Adding Typewriter

Hinnea.-polls
$
4&5.69
11,069*04
3,587004
673*40
348.27
838«3S
281.80
1,174,78
1,980.83
1,353-12
1 *0 6 4 9 3
U Sffl SSTOS?"

435*33
659.35
15*48
785*61
T T , 39§".7 5 "

Resale of and allowances on old equipment
Ket amount paid out of 1929 earnings
In 1928 purchases of Furniture & Equipment
amounted to




$24,732.81
3*650*00
”
$217082 81
$32,026.65

rURJTlTtJRI AND gQUIPMEOT (Oontd)
Maohines for handling currency purchased or rebuilt to handle
the small size notes cost $3S$90.74 and represent the largest item apart
from the adding maohines.

Other equipment purchases were those of a

normal year.
Inventory values have been reduced quite materially 0 the
figures at the close of 1929 representing an amount we could obtain
should our equipment be disposed of0 Ho reduction has been made in the
valuation of articles purohased during 1929 but the reduction in value
of previous purchases has been liberal*

The value of 300 adding machines

and typewriters at Minneapolis and Helena has been lowered $17,300j
furniture of executive offices reduced f3*80Q to 50 per cent of cost;
duplicating equipment and currency sorting maohines have been cut down
$3*000 in value and $825 written off the inventory value of the banfc
trucks*

Items sold and credited to Profit and Loss were carried on our

inventory at #6t019«55*
After the new equipment has been added to the inventory and
the reduction in value of the older equipment entered on the records, we
have a net valuation of $131,694,>49 or $5,685.78 less than at the close
of 1938•

It is of course 9 understood that our yearly purhc^ses are

charged against profit and loss at the close of each year and that the
above inventory is shown in the Bank#s assets at a valuation of one
dollar*
The figures below represent total purchases of equipment since
opening of the banks
Amount expended to close of 1928
Purohased during 1929
Minneapolis
*
*
■ ~
- Helena
Less amounts received for furniture
sold or traded in
Total expended

418,838.71
22 P837.0S
__ l a895,7S

Inventory valuation at Minneapolis
"
«
« Helena"

130,584.65
11.108.84

$131,594o49

35,000»00
10.000.00

$ 35.000,00

Fire Insurance oarried at Minneapolis




$
443,571.53
18,33?o0h

5435,234,.48

$

?KAKa£S Ifl STAfF DURING 1939
JctU: 1 . 1330
Ja.na 1, 1939
Ml >nea;vlie Ofilcere
~Tx
18
Minneapolis Bank General
168 (4 e^^help)
164 ( 1 ex 0help)
Minneapolis Closed Bank Department
(Collectors and Clerks)
10*
11*
Minneapolis Transit Department
S3
352
78
865
Helena Branch
31
31
Fiscal Agencys Paid by Bank
8
12
Keimbursables
Officers
1
1
Krooloyeee
5
14
5_____ 18
314
♦Three Collectors in Closed Bank Department who are working on a c o m >
mission basis are included in above number«
PERSOym
At the close of the year we had 23S persons on the Staff at
Head Office and 31 at Helena Branch, as compared to 383 at Head Office
and 31 at Helena Branch at the close of 19380

The Head Office Pay-roll

therefore^ shows a net reduction of 17 persons during the year, with no
change in the number employed at Helena Branch 0
The reduction includes one Officer, Mr. Bo Vo Moorep former
Deputy Governor* who resigned during the yearc

Through a reassignment of

certain officers* duties, Mr© M o o r e w o r k was taken over without increas­
ing the official staff.
The greater part of the reduction was made in the transit departmentc the number of employees on transit work at Head Office being re­
duced from 78 at the close of 1938 to S3 at the close of 1939o

The

fiscal agency department chows a reduction of four employees and the
closed bank department a reduction of oneD

On other work throughout the

bank there was an increase of four employees*
Most of the employees leaving the bank were receiving salaries
in excess of $1,300 yearly«

All new employees hired during the year, with

the exception of building employees, were messengers and pages, hired
at a much lower salary„
Although the salary increases given employees on January 1, 1929
were quite liberal- the amount of the adjustments was more than offset by
the reduction and changes in staff during the ye&r0

Total salary payments

for 1939 show a decrease of over $10,000 in comparison with the previous
year3
The efficiency of the staff,generally, has improved during the last
year ae indicated by a comparison of the volume of work and cost of many
functions as shown in similar figures of a year ago, and we are of the
opinion that the present progress will continue during the year 1930»



COST OF PERSOHHBL FUHCTIOff

Officers0
Salaries

Number of
Officers

Administration

r o k n i'm----

--- 35—

Monthly Average

132*50
155oOO

Tear 1929

Tear 1928
Hiring Employees &
ies» Records
Tear
Tear 1928

Number of
Employees

Trainiiig

—

TTtfKTZT'2.819oOO

Monthly Average
Tear 1929
f
Tear 1928

Total
Expense

Other
Expense

159o58 $
150 *17

Tear 1928

132o50
155o!2

| l,§14oig~ i ' 7H
W
r8
228 39
lc801o98

,99

Contribution
to Fo RoClub

I l»fc90„00
188X49

$ o!2

Employees0
Salaries

Monthly Average
Tear 1929
Tear 1928
F-iuoation and

Expense

i;m\w-----—
1,860,02
| 1,47

i

>46

Year 1928

Total

Other
Exfunse

2e030o57
168o56
169o20

8o98
19 o03

Total
Expense
I 4,4l4o38

Contribution To Other
A m 0 Insto Bkgo
Expense
| 1 p201.00 $ £>88038

218 075
234092

288oOO

$

517o61

100o08 #
24o00

8 f624o61

49 o
03
43flS
t

|

367 086
302o06

Total
Other
Employees9
Expense
Expense
Salaries
“ ZpOTOS
f & r T O T ------ - ......... r « r ........ $ l,800o06 T 2710Z5
1.00
1 p584 o72
316051
1 d901 o25
Tear 1928
Humber of

Welfare and
Medical

Monthly Average
Tear 1929
Tear 1928
Cafeteria

|
Humber of
Employees

Tea:r 1928

5 ©71

Monthly Average
Net expense 1929
«

"

Float Force

lTUmber of
Erajgloyges

Tear 1928

I,£8

ISarim -----

Monthly Average
Tear 1929
Tear 1928




Cost of
Food

Less Receipts
Fet Expense

$ 5 C329 30 10,547,24

489*12
444,11

Number of
Officers
“

S

3

0
45

-----------------------

172o60
158o44
Other
Expense

Total
Expense
ll,173o04

i 6,00^088

| l 0845o94 |17,722048
Lees Receipts1 1I»735041
Hfct Expense
| 5 p9890&t
167 o»7
153o83

$ 7 7 4 „32

878,U

Employees8 Salaries
Hot Distributed

600,32
4 9 9 o09

Total
Expense

T X 2 5 0 1 --2*959026

271o36
246o60

Total Personnel
Function
Tear 1928

7 575SF3bo

%

22o60
26038

2 P959026

Monthly Average
Tear 1929
Tear 1928

■fear"H25------ ~

Employees 1
Salaries

|

1928

150oOO ♦
132o06

271oS6
246o60
Number of
Employees
>loyees

Exp ease

8 098

18»366o03

■T 3 I

— Jl9p?58o58
n o

| le613o22
l p530o51

44

iiOKTHLY BASIS OF SALARIES PAID ST BASK

(Minneapolis Only)
December 31, 1928
Amount
Ho.

December 31, 1929
Amount

function

General Overhead
Officers
$ 3,887.60
3,15
493.49
• 3.40
Employees
Provision of Space
2,830.77
32.11
Employees
Provision of Personnel
130.00
.30
Officers
• 1,046.94
Employees
3.45
.
General Service
301.25
.80
Officers
80,46
Employees
7,235.11
Insurance
Officers
37.50
olO
Failed Banks
.75
541.88
Officers
6.92
Employees
1,592.91
Loans.Rediscount &
Acceptances
Officers
770.85
1.0 0
Employees
1,110.60
So 30
Securities
408.41
Officers
.80
1 ?724.68
9.34
Employees
Currency and Coin
.40
183.36
Officers
Employees
19*50
3072.13
.V
Check Collection
Officers
,45
180 *00
4 896 97
Employees
45,05
Jfon«Cash. Collection
Officers
o30
80.00
Employees
1 £89S.8S
15.70
Accounting
,55
Officers
306.35
Employees
15*35
2,434.21
Fiscal Agency
Officers
375.00
,90
Employees
11.95
• 1,956.31
Auditing
Officers
.60
375.00
1,417.00
Employees
8.00
Bank Relations
.55
320.87
Officers
Employees
1.05
241o69
Federal Reserve Note Issues
.31
132.51
Officers
Employees
.75
230.03
Bank Examinations
Officers
.94
548.40
Employees
3.20
678.30
Statistical & Analytical
.30
Officers
176.03
741.79
Employees
5,00
Total Officers
ii. 06
f 8,733.70
242 53
33,579.69
Total Employees
Less Reimbursable
Salaries
Officers
*90
375.00
Employees
762 05
5.90
Salaries Paid By Bank
Officers
10 .10
8,358.70
Employees
236,63
32,317,64

3ol5
3.30

$ 3,697.98
435*07

21.89

2,745.94

.45
9.20

155.01
1,018.08

.80
53 c44

367.55
6*559.56

.10

33.34

1.15
7.83

568.35
1 j510-53

.75
5.98

781.37
936.33

.80
9.74

420,89
1,648.01

.40
17.32 •

183o36
2,466.22

.45
SI a83

157 50
6,083,37

.20
15.94

70.00
1,788.39

.85
15.10
.90
18.97

665o05
3,262.62
■
358*32
3,740.47

1.0 0
8.93

583.40
1,569.93

.55
1.05

320.87
211*95

.2 1
.80

12 0 .0 1
222.92

.94
4.15

509 »20
777.84

.30
5.15
13.00
234c45

175,02
714,24
$ 9,067.10
38.731.36
9

.90
5.30

358,32
778,30

11.10
259ol5

$ 8.708.78
32,953,56

i

. ^

5

o

,

•

.

»

.




.

$

.

'

V

The chief item in the General Overhead Punotion contains the salaries
of the Agent and the Governor o Wader the general interpretation of the
Federal Reserve Board*s manual, no part of any other officer9s salary that
oan be charged to another expense unit shall be oharged in this unit. It is
fairly well understood what other expenses should be placed in this unit and
most of the Federal Reserve Baziks try to hold down the Overhead totals „ This
bank oamperes favorably with the others in this respect 0
QBI1E&AL OVERBEAD COBTROLLABLB
Administration

1929

Average number of officers
2 015
Salaries Officers
Average m m b e r of employees 2 >26
Salaries employees
Directors9 meetings
Traveling expenses
Officers and other dinners
Office supplies & stationery
Telephone and telegraph
Membership dues
Stenographic
All other

Total

1926
2.15

$ 46p887 50

I 44,375o
02

2,25

5,449o60
5,828055
l,434o34
569n95
715064
475.70
950.00
217«0Q
2 D547023

5P302o77
6 „140.43
1,455051
282 099
425062
506*92
850.00
294.59
1,458064

rw.wBoBi

fisr&nrw

All Other
Supplies furnished member banks
349 o50
Publications
Gold abrasion
Grand total General Overhead
Controllable
| 650225.01

$

f

39o23
393o90
7,000nOO
68,505042

GEHERAL OVERHEAD KOK-COHTROLLABLE - MIMBAPQLIS
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 policies0
COST OF CURRENCY
— Federal Reserve Currenoys
Original cost, including shipping charges
Cost of redemption, inc0 shipping charges
Shipping charges on currency to and from
member and non-member banks
Shipping charges on coin to and from banks
Cost of shipments Head Office to Branch

$

Total . . i

Governors0 Federal Reserve Agents"
Federal Advisory Conferences
Federal Reserve Board expenses
Shipping charges on securities

1928

79j>642017
2 9745o36

$ 20^,992 o08

3 3 P0 9 6 G75
8 c949o37
427 098

290427o26

l p509o83
8 04 7 7 o65
332 016
p o t o t

ALL OTHER
«—
f
Total o o

Grand Total General Overhead Kon-Controllable




1929

2 ?282 a77
19D433ol6
l 024Qo56

$ 1470818o12

|

2,424o20
18,930o68
859 o06

| 8 2 c962o92

COMPARATIVE FUNCTIONAL STATEMENT
SHOWING BOMBER OP OFFICERS , BOMBER OF EMPLOYEES AND EXPENSES
1929-1927
(Minneapolis Only)

General Overhead « Controllable
Provision of Space
Provision of Personnel
General Service
Insurance
Failed Banks
Loans 0 Rediscounts & Acceptances
Securities
Currency and Coin
Check Collections
Non-Cash Collections
Accounting
Fiscal Agency
Auditing
Bank Relations
Federal Reserve Note Issues
Bank Examinations
Statistical and Analytical

Number of Officers
Average Number Employees
1928
1927
1926
1927
1929
1929
2 J5l
Sofc'fc.
2ol5
TolE
2 o^
«>
r
22 ol6
23039
ZlodO
7 c94
o82
*45
9 e31
8o98
033
loOO 61e36
64o28
610O5
*80
o81
olO
olO
ao
o96
1 066
7 017
22o35
1 ol5
11 o
69
o48
6.30
o95
o75
5 047
6 ©03
8 o90
9 012
o76
o80
.83
10o53
o
40
o30
19 o62
19.32
c45
17 e87
o46
045
53o81
66.43
c65
60 057
o20
c25
16 e/
25
I 6068
c20
18099
o85
.84
15o09
18048
056
16089
17 e20
©90
o90
•94
12049
I60IO
loOO
8 e35
o7S
9 328
7 09S
loOO
o55
o55
068
lcl5
loOO
06O
023
.80
e21
o73
02 1
3o72
3o20
3o24
o94
o94
089
5o32
5 ©05
5*37
oSO
o30
o60
292.42
12 o66
15o"8 253.27
ilc?4
zf6o^9
CD

o

Expenses
1929
General Overhead - Controllable
General Overhead - Non-Controllable
Provision of Space
Provision of personnel
General Service
Postage
Insurance
Failed Banks
Loans, Rediscounts & Acceptances
Securities
Currency and Coin
Check Collections
Non-Cash Collections
Accounting
Fiscal Agency
Legal
Auditing
Bank Relations
Federal Reserve Note Issues
Bank Examinations
Statistical and Analytical

*

65»225o01
147*818ol2
139 0 4 6 08Q
7

19*358o58
82c977o52
3207 4 8 014
26,216 08O
62 0O67 ©00
26,465b64

26,127 o31
48,520*22
88,661©60

27,824 039
42 ,774 o35
37 89 c74
6 e973.22
24 0459o92
8 0293©56

4,445 o01

230386o61
160813o92

Expenses

$

Expenses

1928

1927

6 8 p505o42




$

82,952.92
146e283o37
18 O366o03
7 8 p203f89
f
l
32 p145o58
26 0226o02
79,341071
24 ,490 064
2 8 e922o2S

61,312.44
96,422.46
152e1 8 5 080
17,838o71
79 O651o06
33,812«29
2 4 P792o49
115,591e>68

20,337 o98
27,248©39

39.322,99

41,394053

107e741o29
27,958o64
48,427 o92
43,903086
7,82809i
24,140025
6 p232ol2
3,180o44
25p609e6£
170833oll

95,355.25
27,341055
46,367.91
47,087 0 6
V
12,P26021

27( 34o47
^
6 5772o90
4,099 0
11
24e843o76
16,782*96
f

*
Total Current Expense
Total Reimbursable Expenditures
Protest Fees (Paid to Employees in
lieu of salaries)
Stock of Supplies (Net Debit)

i l

f

9340887o46
17,401099

| 906„212o77

$ 956,9S703G

4,159©31
2 p044o58

♦

4,087 085
3 0300o41

4,308o45
2,249o27

968,495.54

$ 9g30453o54

| 96s ,443c99

19 c852031

19,948o97

DISOQUHT OPERATIONS
(Lie lu<* ing Helena Branch)
The amount of collateral loan* and rediscounts handled for our
member banks during the year 1339 totalled $l,035,24?j000o
M

This is the

largest amount discounted in any year since organization and exceeds the
total of accommodations granted in 1938 by $410,000,000,

Of the 1929

discounts handled $19002,175„000 represented the needs of Minnesota banks,
largely the big banks of the Twin Cities*

Short period notes usually

collateraled by United states securities* are offered for discount and fre
quently taken up on the following day if the reserve balance of the dis­
counting bank permits*

This repetition results in large monthly total

offering? ex<^eeding $100,000,000 in four months of the year with a high
total of $138,000,000 in April lasto

During the closing months of 1939

prepayments of collateral loans were not as frequent and for part of
that time the average amount of commercial and farm paper under rediscount
exceeded the collateral loans„
One year ago the Minnesota member banks contributed all but
#15^000^000 of the total amount discounted*,

In 1939 we discounted

£ 3 3 ,0 0 0 ,0 0 0 for the members situated elsewhere than in Minnesota with

all States showing increases over 1938 < In Montana the total discount­
>
ed was $113591,000 in comparison with #3,5 42 ,0 00 discounted during the
previous year,

Fifty per cent of the Montana members used our discount

facilities at some time during the years

There was little change in the

number of banke situated in other States that used us, but the same banks
came to us more frequentlyo

The following statement ehows the number of

banks accommodated in each State and the total amount discounted0

Minnesota
North Dakota
South Dakota
Montana
Wisconsin
Michigan

Number of
Banks Accommodated
1928
1929
80
78
61
59
40
36
35
45
13
13
9
14
224
249

Amount Discounted (In thousands)
’
1939 ~
1928
$ 1 ,0 0 2 ,1 7 5 . $ 610,175.
6,8440
4,913,
3,821c
l p961o
1 1 ,5 9 1 .
3 r542,
5,350*
3,1 5 3 ,
_____ 5.,466o
2 ,6 1 5 ,
O;03§ 7a4TT $ 6357358 ,

In comparing the number of items discounted in 1939 with those
discounted in the previous year, we wish to note that the 1938 total of
items included 14,500 notes, secured by adjusted service certificates,
which were discounted for the Merchant* National Bank- St., Paulo




These

DISCOUST OPERATIONS

(Gontd)

notes took several weeks to write up after which they were held iutaot
and taken up in a lump during December 1938o

With this allowance the

volume of other classes ot discounts was 9*242 in 1938 in comparison
with 11,338 items in 1929 < That the large banks used us frequently is
>
further evidenced by an average amount of approximately 590,000 for
each note discounted*
The increase in amount advanced was due largely to the fact that
for some time there was only a limited market for grain with the result
that a large part of our grain crop was held in storage and financed by
bank borrow!ngSc
Towards the close of the year discounts for members were material­
ly reduced with $10,177,000 held on December 31 or lese than one^half the
amount of the average daily holdings throughout the year,

The daily

average holdings in 1929 were ^21,635,000 and the average rate obtained
for the year was 4„845 per cento
Our allotments of bankers acceptances purchased through the
Special Investment Committee were much lese during 1929 than In the pre*»
vious year0
1938o

The daily average amount held was $3*037,000 less than during

In 1938 our total allotments from the open market purchased amount­

ed to $69,309*000 with a further total of $25,309*000 taken by us direct
from the holdings of other Federal Reserve BankSo

During 1939 our al­

lotments were less than one-half in number and amount in comparison
with 1928o

In October, because of the heavy demands of our member banks *

we requested the Committee to omit our allotments until further advised0
In December* with demands falling off in our own District *e assumed
our proportion of bills and received a total of $6,640*000 for the months
No bills have been taken by us direct from other Federal Reserve Banfrs
since February last*

Although average bill holdings have been muoh lower

than in the previous year, the rates obtained on acceptances held were
higher than on other discounts for every month of the year until December
when the average rate dropped to 4*437 per cento

The arara^e rate for

1939 was 4 o903 per cento




49

DISCOUNT OPERATIONS
MIHITI'APOLIS ASP HISI>%NA BBAHCH
Number of Banks

Month
... 1329

January
February
March
April
May
June
July
August
September
Octobar
Hoirambar
December
tfuraber different
Banks

.

1927
S9
83
97
13 1

10 H
133
133
12 1

lk
65
95
110
.. 3 5 ..

??
m
52
7*
81
97
10 5
90
66
SI
100
, 75

ifo
lUl
12 2
62
6S
78
.. ...76
..

22b

1?

2H9

Served
192S

275

1 2 a ....
705
318
573
1,153
1.5*2
l 8590
*37
762
657
1,191
1,115
____ _135

_______ i m
. .
U 19
2kl
369
6S3
655
9SS
1 1 ,6 2 0
6,162
^22
71S
722
717

11,2 3 0

23.7te

CD
LTD

Amount Rediscow..

Number of Itetna
Received

000 0mit%a£

1927
7ss
5^
90U
1,152
1 02UO
1,11*4
1,331
m
282
513
6H6
66U

1 9 a?
$ ^s,g70
*+1*352
6 2 ,2 9 5
1 3 7 .m
55.7^1
59.3*L
97.191
107,529
123,923
12*4,1S8
9 6 06 0 1
SQ.2I7

io,oUo

$1 ,0 3 5 ,2 4 7

2

I

,:
3

17.722
37.681

t ',655

'

8.222

19.740

60.115

34.690

13.358
14.639

33.965
6 2 .111

74.070
73.130
82.379
78.207

19 .

>4,274

10,454
3.398

8,110

9,541

5g,258

.JL2S1

$625,357

;i4i,03i

VQLUMS OF REDISCOUNTS

Sumber nieces
Radiscountad

Total Amount
Radiscotmted




1929
1928
1927
1926
1925
1924
1923
1922
19 2 1

1929

8 :8

_ _ _ ___ Mil
llnnftsota

1928

19 2 7
1926
19 2 5
1924
1923
1922
1921

Minnesota
^.727
19.837
2.930
5.006
4,385
8[>928
10 020*4

$ 1 , 0 2 ,1 7 4 ,830 .4g
0

6lO.i75.325.5O

124,488,538.05
2 0 3 ,9 5 8 ,58 0 .2 7
73.903.670.18
64,093.222.03
2 3 2 .2 0 2 .3 7 7 .6 5
97.456,500.97
4 7 4 ,3 3 8 ,3 4 0 .5 6

North
Dakota
2,59^
2,00S
2.555

5 :8

5.504
5.982
6 ,6 3 3
14,9%
ffprth Paicota
$6,843,982.43
4,913,018.90
6,013.983.38
4 ,9 1 3 ,7 1 2 . 1 9
3,425,108.34
12,029,840.01
I9e591.94l.19
2 0 ,7 6 8 ,0 13 .0 6
6 7 ,0 5 8 ,2 3 3 .5 3

South
Dakota
1 ,7 5 4
1.0 9 1
2.657
3.755
3.655
7.450
8.518
11,014
24.395
South Dakota
$3,820,797.30
1 ,960,576 .0 6
4,720.293.29
6 ,4 1 1 .0 6 0 .36
S j 323-649„44
13,450,287.56
l4.272.OS2.70
27.885.394.41
91.838.597.01

Montana
l'5S
1.554
1.569
1.575
4.838

«
19.718

jaai
$11,590,966.86
2.542.159.60
1.902,915.72
2=108,395.56
1,792.111.93
7.472.950.36
17.997.317.38
28.370.089.12
65,498.977.15

Michigan
15*
12 6
138
$5
136
92
210
478
815

Wisconsin
422
220
206
140
267
601
977
1=750
3.717
—

-----------------

MisMsaa—

n
io,o4o

12,514
11.492
2 7 ,4 1 3

25.392
i i m

$l,035.^7?006.85

$5 ,3 5 0 ,6 9 3 .5 3
3 .1 5 2 .3 1 7 .3 8
2 .088,477.6 9
2 ,4 2 7 ,6 38.6 8

$5,465,736.27

2 ,069,500.00

221,888.887.06

2.214.193.91

2,715,870.41
1 , 228, 878.58

92,374,604.21
100,354.573.87

2 .0 79 ,3 9 5 .3 3

3,580,630.40
10 , 352. 811.38
20,397.189.10

2,615,000.00

1,817,014.42

2.407,577.24

625.358.397.44
1 4 1 .0 3 1 .2 2 2 .5 5

290.0 5 1 .926.56

8,181.334.45

193.oi4.l43.39

llj5 3 0 .6 36 .70

7 3 0 ,^6 2 .0 24 .0 5

» m T f f SI Wtt» PtffiCHtfKP
g»P*T f w c h w d in the_Qp«n Market
J9J9
Buaber
lL j^ e c « *

im .

luaber
Amount

Jte m k

435
319
322
174
269
109
47
146
66a
67
186
„40Q

$ 4,680,027,92
2(665,816.52
4„098,201 30
2 ,662,404.88
2,622,316,71
1,266,828.17
617,106,66
l c234,949.04
6 ,712,343.10
1,0 9 6 ,3 23.12
427,787.40
J J M L M

973
498
594
570
375
291
271
259
614
866
716
777

$ 80834,017.84
4,861*427,95
8B5880324 32
50270,412,58
4,475,623.34
2, 652* 708„ 79
2,787,800.14
2 402,056c 85
5 004,051,45
8*940,487,17
6a568,729,66

3,077

January
February
Marsh
April
M
ay
June
July
August
September
October
Boveaber
Dedeaber

$ 33,625,219.25

6,804

$ 690309»097,29

eauer uurchasod from other Federal Beserve Banks
January
February
March
April
M
ay
June
July
August
September
October
Boveaber
December

49

$

29

1,9 9 9 ,8 75.00
502,162,95
' „

«»

■
e
*
«i
a
78

t

2 ,502,027.95

1,600,000,00
505OO»5?ln69
2,000,0^9*46
2 300vCD 85
S
3^ 500,292s 48
20000,060o43
2»5000261o71
l c0000202ol0
1,506,843,55

1,297

«
•
.

«

1,400,274,62

251
176
69
139
225
86
110
35
71
,i &

-

«>

$

-

•

-

.

64

$ 25>
303e?'1^ a 9

M M f f l a "TATWffT 8 B W I I I W J L % g a J O a F

jSMMK Oy.BgfcOTiaS

SAL4BII3 AD MM2818 OF M W . BB)ISC0CT?8

................ I !">' I....
'll

ipolle
TMinneaij
Buaber of
Botes Bo*
discounted

luaber of H of Botes
®3
Collotoral received oo
Kotos di*=> co lla te ra l to
ooantod

Only

Bunber
of Vote*
Rebated

fiO of Botoo
o
received « i
co lla te ra l to

Buaber of
piece* of
paper

8,038
22,089

1# 613
lt
.83t

1,172
347

931
64?

5C
343
4 ; 576

3,155
8,104

Monthly Average
Tear 1929
670
Tear 1928
1,841

134
102

98
29

77
60

445
381

36S
675

Tear 1929
Tear 1928

Tear 1929
Tear 1928

Monthly Averse
Tear 1929




Bsployeesb
Salaries

O fficers9 Busbar of
Bsolereet
Salaries

luaber of
Officers

,9 5 $10,104,18
9 ,3 7 5 ,0 4
,7 5
$

842.02
781*25

6,30
6.03

$ 13,317,00
11,909,47
$

i,109,7t
992,46

Other
- _B*P«b s o

Total
Bipeais

$ 3,044,36 $ 26,465 54
34,490,64
3, 206,13
$

253,70 $
267,18

2*206,47
2* 040a 89

51

OLQSKD BAKK3
At the close of business December 316 1933

the unpaid

liabilities of 57 closed member banks to us were #709,320o53o
During 1929 the number of saember banks closing ^as 13 and of these
8 did not owe us anything on dtscountso

The remaining 10 banks

added $388,488«09 in liabilities, making a total of #997,808«61«.
Total collections made from all sources daring 1S39 amount­
ed to $581,4480 56 end of this amount 1523,,600=98 w<->s applied to
reduce the direct liability of closed banks* leaving a net balance
due from these banks of #475,307o33 at the close of 1939„

Of this

latter amount, the remaining liabilities of 8 bankfe totaling
#99f438081 had been charged against the Special Heeerye in pre^ioue
years with nothing nh&rged during the past year0

^arnes of the

banks from which recovery may not be made, and the uncollected
liability of each, are given in the December report from the Closed
Bank Department

On December 31, 1939? the number of banks on our

closed list having liabilities to us was: 55, including the eight
banks already charged against the SoeciaX Reserve»
Ae security to the liabilities of the 47 banks on our
closed list not yet paid or charged off amounting to 1375,773003,
we hold $1,961,633o80 of paper0

In addition, we hold $148,869c89

of paper classed as worthless which was collateral from those banks
whose debits to us have been charged
Up

o tto

to the end of 1939, *83 member banks with total lia­

bilities to uf of |14,393,145c68 had closed and of this amount, we
have received full payment from 237 banks of their original lia­
bilities of $13,333,938*05,,

The liabilities of the remaining banks

to us have been reduced 00 that only $475,2070 83 remains due as
indicated above*,

In addition, we have obtained $368,553«17 in

interest and #334,608^08 of our collection expense




Unpaid expense

CLOSED B A NK

(OQU7D)

accumulated as of December 31, 1929, was $33S,3390710

During the

past year £15,450*57 of expense was recovered, the greater part of
which ? a ? Incurred In prior years«
?£

Interest collections made were

$ 17,4380 33 xrom closed banks and $395*63 from other advances made
to protect o\i3 Interests..

In addition to the recoveries mentioned,

we have collected during- 1939, in certain accounts, #43,348o36 more
than the original liabilities due us, and now hold $93,538o33 which
will eventually apply as a recovery of Interest 01 collection expense^
A material reduction was made in the expense of the Closed
Bank Function during 1S29 and some further reduction will take place
in 1930,

The average number of employees on this work during 1939

was 7a1? and in 1938 llo59o

An average of 086 officers time was

allocated to this function in 1933 as compared to 1 015 in 19280
Some of the reduction in closed bank expense ^as through delet: rtn*,

A tew representatives are no* employed in other functions

but work for the closed bank department either part time or part of
the year^

Traveling expenses should continue to decreaseo

Legal

fees w»re estimated at $13^,000 for 1939 with actual expense approxi**
mately $9,00Qc

The estimate for fees in 1330 ia $lG,000o A corn**

pari son of the 1939 ,=md 1938 expense follows?
00MPAKATIVE FUNCTIONAL EXPENSE
193S

Salaries « Officers
»
I 7,816o60
Salaries - Employees
18,531013
Traveling expense
?,875o08
Printing, stationery and office supplies
316*88
Telephone and Telegraph
432006
Legal Fees
8,968«40
All Other
18.1300 73
Total
* 33,067300
Average number of officers
Average number of employees




o88
7,17

1938

$ e js m

90

37,4S4o09
ll,773o34
3 6 1 o94
3 4 4 e67
13,393.0 07
1 9 . 3 5 4 o8 0

1797341 o71
lol5
llo59

CURRENCY AND COIN JOTS?!PM
Both volume of receipts and shipments of currency have ehown
ins reaves over the previous year*

In 1933 a smaller total amount of

currency was shipped than in 1937 otherwise there has been a steady ir
*
crease in volume received and sent for a number of years,

It ir* alfcJ

noted that the amount of currency received from member banks almost
consistently exceeds the amount shipped over a period of years^

*111

endeavor to find out the real reason for this condition*
For the IS months of 1939 we received currency to the amount
of §328,000,000 with the receipts of each month showing greater than in
the corresponding month of the previous year with the exception of
February and March»

In July when we began making shipments of small sl.2e

notes we received from member and non-member banks $23,496,000 or nearly
$6*000.000 more than in July 1938„

The total received for the year was

$35 ,,400 *000 greater than in 1928c
Shipments made in 1939 aggregated $197,833*000 or $8,431,000
more than in 1928. all of the increase occurring during the last six
monthso

Number of shipments by Minneapolis increased from 15,110 in 1928

tc 19t305 in 193SC

Nearly 3,000 more shipments were made to non members

during 1929 due largely to the sending out of the specimen sets of new
small size notese

Incoming shipments of currency also increased from

13,211 in 1938 to 14,703 during the year just ciosedo

Packages making up

the incoming shipments in 1939 contained an average of $15,500 or $1*100
less per package than in X938,

This indicates more raoid retirement of

the smaller denominations„ especially $1 bills

It also indicates that

the banks are making more frequent shipments tc us of surplus cash than
they might do if they had to bear the shipping expense themselves«
The situation in respect to silver and minor coin changed dur­
ing the past yearo

In 1938 more coin was shipped out than was received

with these conditions reversed in 1929, Over the past year we have re­
ceived $3,734,000 in coin or approximately #700*000 more than the receipts
of 1928c

The outgoing shipments were $3,633,000 or $195,000 less than

the shipments of the previous year<>
In order that new one dollar silver certificates might, be
made available for circulation, the Treasury Department during October
and December authorized our placing under joint custody $510,000 of



gPKRSNOr AND COIff FUNCTION-

(Contd )

standard silver dollars

In addition to providing the necessary se­

curity 9 by lodging here

the shipping expense to Washington was savedo

It is likely that further amounts of standard silver dollars will be­
come available to secure issues of silver certificates because in
sections where silver dollars have been in demand^ there is now a de­
cided preference for the new small size #1 billc
Fot several months the Federal Reserve Banks> at the request of
the Treasury Department*, have been accepting for redemption, the National
Bank currency*

This additional labor as well as the heavy volume of

other notes in the t'wo sizes* makes it appear probable that the costs of
our Ouriency Function wi.1l show an increase in 1930*
COMPARATIVE STATEMENT OF CURRENCY AND COIN FUNCTION
SHOWING HUMBER OF PIECES HAI d UB', ftWBKK OF 15FtoY£fs7SAlARIES
.
A E D ' E X P E N S E l l ? ^ - 1 ^ 5 ------- -----XSTEneapoTls Only]

Tp'ar 195S
Year 1938

Number of Bills
Received and
Counted
Amount
40,893,315
i 31?pi6Sfb65rc&
38,035,864
194,$16*000.00

Monthly Average
/ear 1929
3,574,443
Year 1928
3,159 > 5 5

Year
Year 1938

i

Number of
Of fleers
,45
o40

■

Officers
Salaries
T ~ 27 * 7 B 7 W
2,199,92

Monthly Average
Year 1S39
Year 1928

§

Other
Employees
Expense
Salaries
•
i 34,760c 10 § 6n733*91
4,143,83
23,790o95

Number of
Employees
lit SO
IS*??

17,784,000000
16,19^000*00

Total
Expense
J43,S5§o6i
35,133:, 70

5S0o 33

-

$ 3 PSS3o25
3,937CS1

3,838- 67 $
3 399r35

345c 24

2000 35
183,33

2&M

-W
fc'

■ 'W -»

< *« '*»»* —> — I ■ I
"> ■
1 I

Year 1329
/ear 1938

Number of Coins
Received and
Number of Employees Other
Total
Counted
Amount Employees Salaries Expense__ Expense
-i2 ;o s s ':8 0 7 " i 3, 943713io0'S i r i s
f 3,§ 97t s j t p t s s ? ~ i § i 4 ,5 o i ,2 i
9,313,796
3„2S8 ,598.00 1.10
2,047,60 3,141.79 4,189.29

Monthly Average
Year 1929
’ 1,004.401
Year 1923
776,056




$

328,844.25
274,049.83

%

191.43 |
170.33

188.68#
178.48

380c10
349.11

COBBBTCT AID COII IW C f t O l

aeAov is gl»en a comparison of the Federal Ressrrs tote coiti cad r*»
usisption expense, as vail aa the shipping chargee on currency and coin for 1928
and 1929 f ;r the Head Off *e and Brancho
008* Of CQBKBWT. <j«« A L Q T W B fip MHhCQIgpflLt.ABLn
(Ml writfrfl 1f Qwly)
1929
1928
Original eoit of F0 Ho loteS including shipping charges , „ $ 79,B3®n7 $ 20^92»08
Redemption coat of Fo R* lotaa
*
”
«
. »
2,745o36
10509,83
Shipping ohargea on currency to Member Banks and from
Member and Ion»Member Banks * • * ' « « • • • •
• « 33,096o75 29,427<> 26
Shipping chargee on 6oin to Member Banks and from
Member and Ion»Member Banks 0 . o . * .
. 8,949,37
8, 477» 65
Shipping charges on currency and coin between Head
_ 332$>16
Office and Srsnch o o o o o o . o o o . a o o o s o ,
.427^^98
$124, SSXo 62 $ 60,73S„98

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

w t H A BB1SCB OUT
Shipping ohargea on currency to Member Banka and froei
Member and Ion»Mcmber Banka o o o . . . . o * o , , . $
Shipping chargee on coin to Member Banka and from
Hester
S ^ M e m b e r Banka
Total o o o e

aoeoo

3,445*58 $ 3,536.95
Ia071o88

1.204.1^2

$ 4,516.86 $ 4,741,07

w m m jiu m a a L m m m n bbobitpfbom m m xtm
Ejmaw m n w m m
w®.

7 7 7

QQB. BB<atf®. reoM aid. srag iD .
to

BBClIflD

Minneapolis Helena C<whined
$ 39,509, $ 471,672.
1 432,163o
255,788.
February 221,606.
34,182,
228,878.
187,133 0
41,745.
March
294,933,
60,332.
April
234d601D
240,703.
30,472.
210,231.
May
239,366
246,400.
7,034.
June
822,252.
23,434.
298,618.
July
36,876 c 339 891a
August
303,015.
23,129,
293,816.
Septembei * 270,687.
421 s066
34,025c
387,041.
October
863,295.
81,368.
331,927.
lovember
26.387. ■ j M t m
J & J 8 I|
1,336,976.

$ 387,493. $3,724,469.

i
j

•

Total Io0
Shipment a
BecelTod____
1,117
809
915
1,050
1.103
1.171
1642
1,441
1.246
1,623
1,806
*.38p
14,702

Total Bt«
Shipments
779
943
1,220
1,084
1,119
3*278
2,682
1,763
1,699
1,462
1,866
19,205

i

Minneapolis Only)
Shipped
Received Shipped
to
From
To
m am BAIHS________ fca^ i m a m m m _______
January
a 8113
4
2
February
808
941
1
2
March
915
1,219
1
0
1,080
4
ipril
1,047
3
May
1,102
1
3
1,116
June
1*166
2,003
5
1,276
July
10627
1,970
712
16
August
1,433
1,753
8
10
September 1,244
1,693
6
2
October
1*520
1,457
3
5
lorembe? 1,303
l p354
2
1
December ll376
,JLtP7
___ OLA
49
2,035
*4.663
17,170
Received
from

SHUTED

Minneapolis Helena
Combine*
$ 84,240,
$ 77,120
8 7,120
12,080.
186,965.
123,885.
173,530,
159,466.
14,065,
26,775,
203,620.
230,395ft
89,690.
296,865,
267,175.
79,295,
440,190.
360,895,.
416,560,
96,680.
319,880.
616,805.
88,075.
428,730 0
90,740,
488,965,
398,226.
807,945.
52,435.
255,510.
42,922,
261,642.
208,720.
22.486. . . 2 8 9 « m
.
.™a6?*5§5*
$ 3,060,580.

$ 572,862. $ 3 ,6 8 2 ,9 4 2

fa hare also made the following coin ehipmente during the year 1929 s
Four ehipmente to our Helena Branch totaling o a
• $ 200,000,
Three ehipmente to the Federal Reeerre Branch Bank* Omaha0 totaling
75,000.
One shipment to the Federal Reeerre Branch, Spokane, totaling * * «
40 000.



TcS«l

« 315,000.

ggwuggD
•yM as:8..iaaa»t<»..«oii
tanaam * * w .<«.imra«p bukb e t mouths
B g lB tt BlgttW B*BC Of MTOtfOLIS IB) H B.W BEilCH.

m m i*
from
From
_Ii*bor Sanka _ Jon-Meaber Bank*
<?antaary
$ 18 143,583,
$ 212,605o
February
IS, 117,108.
185*641'
March
14,743,136.
236,915*
April
17,896,069.
247,100°
203 090
19.317,916.
M«r
Juno
17,977,662.
213,623;
346*307a
July
23,149,890.
340 803
August
19,708,190.
September
258,695.
18,226,829.
325,628
October
22,171,423.
282,427,
19,984,814.
Movember
20.3S7.397,.
„ 274f180^
i
December
$3,127,014,
| 224,972,795,
$
♦
Total 1928 199,261*798,
3,363,066,
Total 1927 194,920,928,
3a185,426o
Total 1926 186,485; 481*
3,170,9640
237„37l0
Total 1925 172,959„062o
248,655.
Total 1924 150,445,955,
132,610,
Total 1923 147,591a 375*
131u000o
Total 1922 113, 325,000a
249,000.
Total 1921 132.789,000,
Total 1920 64,332,000,
528,000,
►

y

s

m

Total Bocalpta
1928
$ 17,302,968.
14,484,963.
15,135,166.
15,180,134,
17,190,254,
1*,116.226,
17,520,082.
17,500,053.
16,293,279.
18,979,208.
16,594,725.
.11,327^807^
$ 202,624,864.

l

...

s

To
To
loe-Member Bank*
Member Basks_
January
{ 10, 344c815,
|
$ 117,430.
February
150,546,
12,180,350,
148,349.
March
15,620,100,
112,591,
Air 11
14,060,949o
16,378,055,
153,322c
May
June
16,, 519e465,
191,796,
2,234, OOOo
July
18c257,9llo
20,016,254*
326>500.
August
18,872,460
489,949»
September
314, 738,
160007,800,
October
262,213,
18* 018,988c
Vovembar
272,036.
December
17,782,430*
$ 4,773, 470o
$193,059,577*
$
♦
20881,674»
Total 1926 186,530,926.
2P799,269a
Total 192? 189 ,256, 743.
2,370,2300
Total 1926 184,703,. 348,
2,172,170.
Total 1926 171.141,273.
1,383,369,
Totai. 1924 in,i#$„734
2,753,003.
Total 1923 137,867,840,
Total 1928 IDS,117,000,
2C047, OOOo
Total 1921 89,296,000*
1,020,000,
Total 1920 78,616,000,
380, OOOo




Total Becaipta
1929 _
_
3 18,366,188.
13,302,749.
14,980,060.
17,842,169.
19,621,006.
18,191,176.
23,496,197.
20,048,993.
18,486,624.
22,497,051.
20,267,241.
- 3km»i77,
$ 228,099,809.
»
202,624,864.
198,106,354.
£89,656,445.
173,196,333,
150,694,610.
147,723,985.
113,456,000.
133,038,000.
64,860,000.

Total Shipment*
_____ 19.29....... .. .
.
$ 10,462,245
$
12,330,896.
15,768,449,
14,173,640,
15,631,377.
16,711,261,
20,491,911.
20,342,754.
19,362,409.
16,322,538.
18,281,201.
18,054.466,
$
# 197,833,047,
1
189,412,600,
192,056,012.
187,078,678.
173.313,443.
172,5606003,
140,620.843,
107,164,000.
90,316,000.
78,996,000.

Total Shljaaatii
1928
11,196,222,
13,819,613.
16.331,190.
14,175,294.
14,490,070.
16,345,215.
14,072,735,
16,476,900,
18,981,438,
20,595,839,
17,634,262.
tt.ffi3.Sp.,
189412,600,

Minneapolis only}
Increased use of this service was made by our member banks during
929 result '"Tig in 4,^10 more piscee being handled than In 1938 but showing
a decrease in the total amount of custodies held from one year ago of
#11,479,4780780

This decrease all occurred in the amount of United States

securities held in safe-keeping or as collateral to War Loan Deposits with
a further small decrease in the like securities held as collateral to Bills
Payable-,

Large amounts of United Btates securities held for the larger

banks were withdrawn and soldo

The fact that the Government financing is

being donft at lower rates and that Treasury Bills may not be paid for by
credit, will tend to curtail operation in War Loan Deposit accountSo
Miscellaneous securities, the handling of which produce the major
part

of our laborp

increased over $8 ,,000 >000,.

Securities

pedged to secure

special deposit© and for other purposes, increased from $37. 009,817051 on
December 3XU 1938 to $38?893>015,40 on December

31,

volume

the close of the year 19,500

of s e c u r i t i e s

separate

records

indicated below, we

h a d at

1929o

In handling

the

comprising 1^078 accounts 0 Our records are compiled on the

ticket plan which admits of expansion or contraction and carries no dead
material in the active
by

the e x a m i n e r s

quests

for

us

to

the

added examinations of the unit banks

holding companies, we are receiving additional re­

the

for verification

control enables

With

fileso

of securities held by

give

uso

Our

duplicate plan of

this information without much additional laboro

A comparison of our safekeeping holdings as of December 31, 1929
and

1938

is g i v e n b e l o w g

1939
Miscellaneous Securities
$ 5 9 ^4 8 0 3 5 5 4 ^ 6 9
C o l l a t e r a l to W a r L o a n D e p o s i t s
4,676,3500 00
C o l l a t e r a l to B i l l s P a y a b l e a n d
Rediscounts
15,8 1 8 , 8 5 0 c 00
Uo bo G o v e r n m e n t S e c u r i t i e s
I 7 , 9 9 3 , 9 S 6 o0 0
Pledged Securities
3 8 08 9 3 ^0 1 5 04 0
$ 1 2 8 , 8 6 1 , 7 3 6 o0 9

|

19S9
5 1 , 4 3 8 , 3 7 8 038
1 3 , 1 8 8 , 3 5 0 o0 0

1 6 , 1 5 1 , 7 5 0 o0 0
30,583,019*00
3 7 B0 0 9 a8 1 7 a5 1
* 138,341,31408 7

C o u p o n s c l i p p e d f r o m s e c u r i t i e s d u r i n g 1 9 3 9 w e r e 1 6 0 , 8 1 4 c o u p o n s as
compared

to 1 5 0 , 3 9 4 c o u p o n s c l i p p e d d u r i n g 1928,

s a f e k e e p i n g as o f D e c e m b e r 31,
Number of pieces

Number o f p i e c e s h e l d in

1 9 2 9 a r e e s t i m a t e d at a p p r o x i m a t e l y 8 0 , 0 0 0 *

r e c e i v e d d u r i n g the y e a r wa s 3 8 , 3 3 9 a n d n u m b e r

pieces delivered was 33,619,

or a total

of

of 7 1 , 8 4 8 p i e c e s h a n d l e d as c o m ­

p a r e d to 97, 3 6 3 pieces h a n d l e d d u r i n g 1928c
C O M P A R A T I V E S T A T E M E N T S S g q R I TI.ES F U N C T I O N
~~
1939-1928
ADMINISTRATION
Q PSfrATl G H S A N D R E C O R D S _V A U L T C U S T O D Y
Noe O f f i c e r s T otal
No., o f
Total
No.of
Total
u r a n d To& Employees
Expense
Employees Expense
Employees
Expense
tal E x p e n s t
$5,
508
| 1 0 , 2 S 3 ; 3 0 3c G 3
$10,61B„e3
|S3, u 7 03l
Year 1939".. 785 ” 2 0 9 ; %
Year 1938
«90
5 , 5 5 9 08 S
5c56
11,459«03
4,87
ll,903o34
28,923*33




n s& m n

p o s it io n

Our member bank retorres had a more uni farm monthly average
in 1929 than during the previous year and the amount of our Federal re­
serve notes in circulation did not fluctuate ae rapidly in 1929 as in
1.938c

This was trus on Jul*y last when we began replacing the old large

size notes

In October when the heaviest demand came from our members

our reserves ranged between 52 „3 per cent and 63 per cent but the average
deposits remained practically the same as in September and November,,
On June 27 the high mark for the year in reserve percentages was reached
at 83o

At that time we were carrying 526,000,000 of earning assets^ From

June 37 there v?as a steady increase in the amount of earning assets held*
reaching the maximum tota^ for the year with $63,943,000 on October 17 <
,
Gold holdings increased $7,000*000 during 1929 but there was
quite a change in the allocation of the gold®

The A g e n t s Gold Redemption

Fund was abolished and the Bankcs Gold Fund contained $19_085 000 on
December 31, 192S or 1110600 000 less than one year 8gOo

There were some

small changes in gold coin and certificates held but the Agent ( Gold Fund
's
gained $31^000,000 during 1929o

This account had fluctuated more or less

throughout the year and was increased $17,C00?000 in December because of
the heavy decrease in paper eligible to secure note circulation^

Paper

pledged with the Agent on December 31, 1929 amounted to $16,510,000^ a
net decrease of $9,500,000 since the close of the previous yearc
The change in our

notes

in circulation was only $1,600,000 since

one year ago 166,856,000 now being in

the h a n d s of

the banks and the p u b >

lie in comparison with 165,274,000 held at the close
Total

earning

this amou n t

assets he l d

$17,397,000

at

may

the c l o s e

not be used

of

the previous year,

of 1929 were $33,807^000 and of
to

secure note issues,

Our total deposit liabilities on December 31 were $59^398,000
with $56 861,000 representing deposits of member banke.

These figures in

elude some excess funds for special purposes as the monthly average in
December is several million less=

The daily average balance last year of

$53,562,000 is approximately $700,000 less than in 1928

Deposits at

Minneapolis and Helena did not reach the high mark attained in 1928«

One

year ago Minneapolis deposits reached $52,848,817,96 on November 9 and
Helena deposits were $93022,608o89 on December 14

In 1929 the peak ai

Minneapolis was reached with $51,093,935 on October 17 and at Helena
with #8,660,344 on January 15o



DAILY AVERAGE MEMBER BASK RESERVE BALANCES BY MOHTHS
Alirme spoils a'ndHelena, Combined
1929-1928
1928

1929

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

January
February
March
April
May
June
July
August
Septembe r
October
November
December

$53 * 884,000 o
5 2,511,000 o
5 3 ,1 0 9 ,0 0 0 o
5 1 ,5 6 6 ,0 0 0 .
5 0,210*000.
51*310*000.
52,385,000o
5 2 ,5 1 0 ,0 0 0 o
5 3 ,2 5 2 ,0 0 0 o
53,235,000 u
5 3 ,4 3 9 ,0 0 0 o
53,3 0 3 *0 0 0 o

$ 5 3 ,2 2 4 ,0 0 0 a
5 2 ,9 9 8 ,0 0 0 o
5 3 ,8 6 3 ,0 0 0 o
52,443,000©
5 1 ,6 1 9 ,0 0 0 o
52,936,000o
51 ,9 5 8 *0 0 0 o
50,678,000o
5 2 ,9 5 5 ,0 0 0 o
55,133*000o
5 6,070*000o
55*092,000«

Daily Average Member Bank Balanoe, Minneapolis and Helena 1929 $ 52,582 0 0 0 o
tt
i?
n
n
n
n
J
T
it
1928
53*247*000*
it
rt
n
i
t
tt
n
T 1927
t
t
t
50 *650,000 o
n
it
tt
tt1
i
t
tt
T 1926
t
I
T
50*670*000 o
tt
n
n
»
R
t
t
n
tt
1925
53*076,000©
n
n
i
t
n
n
t
t
f 1924
t
i
t
4 9 *6 0 0 ,0 0 0 0
n
i
t
i
t
f
l
I
T
I
t
I 1923
t
n
47*813*000o
w
I
t
t
i
n
n
u
t
i
T 1922 4 4 *4 5 1 ,0 0 0 o
I
i
t
t
t
i
t
i
t
t
t
I
T
T
l
f 1921
t
41*535*0000
MEMBER BASK RESERVE BALANCE FLUCTUATIONS

Eicm

Minneapolis Only Oot0 17* 1929 $ 51,093^925
Helena Only
Jan0 15, 1929
8 D660,544
Combined
Deo* 16, 1929
59P412o090

LOff
Minneapolis Only June 11,1929 $59,885,4B3
Helena Only
Deo, 26,1929
5,^7570348
Combined
June 11,1929 46*810 559

Combined 3ov0 9, 1928 $60*105,103o98
Combined Nov<,15* 1927 610758*745<>24
Combined Jan812, 1926 66t688*133058

Combined August 7, 1928 $48*493*619 42
Combined May
31, 1927 42,606,590029
Combined June
3, 1926 45,505*455o89

COMPARISON OF I®!BER B A M RESERVE BALANCES
Thousands only*
1929
Michigan $ 2 *^43 M
Minnesota
36,651
Montana
7*354
Noo Dakota
3*794
So. Dakota
3,998
Wisconsin
2*321
rw;rai m

1928
$ CT2I M
34.679
7*496
4*235
4*092
2*437
T W J B W 'M

OOO omitted

1927
$ 2*7^57 M
34*337
7*062
4*292
3*917
2*257
.P ’
4772-4 m

1926
$ 2~$VZ M
31,660
6,307
4,173
3*535
2*267
" P jtts ? M

DEFICIEHT RESERVE PENALTIES
Minneapolis 1929
Total"J^mHTeV'Tw I'929 $ 7,416o46
lumber of Banks Penalised
206
Maximum Penalty Rate
7%




Helena 1929

TT'$Slo50
31

7%

Combined 1929
112,47*4 9 ? ^
237

1%

Combined 1928
$” 7 7 5 0 5
7
172^

6^

60

STATEMENT

O IHVBSTMBHTS
F

HELP DECEMBER 51, 192 .
9

Maturity
Date
First Liberty Loan Bonds
First Liberty Loan Converted Bonds
Fourth Liberty Loan Bonds
U. S. Treasury Bonds
U. S. Treasury Bonds
IT* So Conversion Bonds
TJo So Conversion Bonds
Uo So Panama Bonds
TJo So Panama Bonds
Uo So Treasury Notes, Series A
TTo So Treasury Notes, Series B

Interest
Rate

1952-1947
1952-1947
1955-1956
1944-1954
1940-1943
1946
1947
1961
1936-1938
1950-1932
1930-1932

4i
4|
4
5 3/8
3
3
3
2
Sj
4

Amount
#

400 o
786,400.
30469p900o
165,900.
9,450 o
3,200.
lll,600o
500 o
260 o
5p058p750o
7 0100 »

'jr ; s iT 0m :
Participation in Federal Reserve System
Speoial Investment Account

■ 8,789,500,

TJo So Securities sold and held pending final payment

470^570.

Total TFo So Securities

#16p875<>350o

Municipal Warrants

$

120,475 •

GOLD HOLDINGS OF THE B A M AHD FEDERAL
RBSERYB ACSEOT AT CLOSE OF BUSINESS DECEMBER
51 o 1929,AS COMPASED WITH DECEMBER 31, 1928 »
Held by Bank
1929
Gold
Gold
Gold
Gold

Coin
Certificates
Settlement Fund
Redemption Fund

Total Gold Held by Bask

#

3,1090615000
1*144*000 oOO
180085,009ol9
3p970D478o75

( 2#c30&p I62od4
'

1928
f

SoSll^OOoOO
l0930p5000
00
29 P646*059076
2,341,759o47

f ft
Held by Agent

1929
Gold
Gold
Gold
Gold

Coin
Certificates
with ?o Ro Board
Redemption Fund

Total Gold with Fo Ro Agent
Combined Gold Holdings




S^SScOOOoOO
10P7020
000000
62p000p000o00
» - « - - -

1928
# 3,455p000e00
10p712p000o00
31P000D0000
00
2 j7530520 Q00

# 6601570OOOcOO

|47,920,520.00

920466P102 94

85p6500319o23

61

TRANSfSR AND CODING UNITB
(Uinneavolie Only")”
*
During 1939 we transferred #3,883,170^000 in 60,819 transfers,
an increase of 999 transfers and #110,045P000 over 1938 with 59^830
transactions totaling #3?7739135j000o
Transfers made for the account of the 5$ Redemption Fund of
National Banks in 1939 increased in amount but decreased slightly in
number in comparison with 1938 a

During 1939 15,319 5# Redemption Fund

transfers totaling #15,189,000 were made and in 1938 15,347 transfers
amounted to #13,430,500a

During the first ten months of 1939

old

size National Bank Notes below the usual standard of fitness were al
lowed to circulate as fit,, reducing the number and amount of transfers
to the Redemption Fund for this periods

In November the retirement

of the old size National Bank Notes on a large scale commenced, but
transfers to the Redemption Fund from this district did not increase
materially until Dece/tfber0 At present Five Per Cent Redemption Fund
transfers are in excess of #150 COO per dayo
Incoming and outgoing wire transfers handled during 1939 ex
ceeded any previous year in the history of the banko

A comparison of

the wire transfers handled from 1934 through 1939 followss
Year

Outgoing Wire Transfers
Amount
Number

1939
1938
1937
193 S
1*935
*934

13,634
11,908
11,115
10,174
10,517
11,943

# 767,533,000,
705*041 3000.
670,649,000,
609-695,000»
696,093,000.,
700,576,000.

Incoming Wire Transfe:rs
Number
Amoun
30,030
18,931
16,634
16,839
14,935
14,561

$ 1,583,231,000
1 ?545;013,000
1,438,576,000
1?381j174,000c
l,3?6,8943000o
1,344 636,000

The average number of clerks in the Transfer Unit during 1939
was lo77 and the total expense #6,366*95 as compared to 3o36 employees
with a total expense of |6;470«43 for 19380
Messages coded and decoded during the year, other than transfers
totaled 33,401, an increase of 3,074 over 1938 with 20,337 meseageso
The average number of employees in the Coding Unit during 1929 was 3o00
and the total expense #3 461038 as compared to l a71 employees with a
total expense of $3,038c39 for 19380




COMPARATIVE STATEMENT tfHOWiflu NU^BEn AMD AMOUNT OF TJiAtfalliU kAtf£,
m s m fif-gggifjacgp^, >»
i
^
(MtmvmpoTTiy Only)
1039 1938

Number of transfers
madet other than for
51 Redemption Fund
/of National. Banks.

.

Number of transfers
for 5$ Redemption Fund
of National Ban^e

(Wire and Aa.il)

Amount

45,SOD

•3-836,981,000c00
2 ^759,704,000e00

Year 1935
/ear 1928

44,473

Montnly
Year 1939
Year 1938

3,300
3,706

|

338,9X5,083.33
339,975,333.33

ijumter of
Employees
V.

j s i m e a

1939

Year 1938

lc77

3*26

Employeee
salaries
$ 2 $644 o37
3,924 o50

Monthly Average
Year 193?

n^.2

Ye a r 1928

Amount
15,219 $ 15,189,OOOo00
15,347
13,420a600o00
1,338 |
1,279

1.365.750.00
1.035.050.00

Other
Expense
3 3,722o58
3 , 5 4 5 e9H
310©31
295o49

Total
Expense
$ 6,386o95
6,470,42
$

530o 58
539o20

OPSINS UluT
Number of
Employees
fear 1923
Year 1928
Monthly Average
Year 1929
Y^ar 1328




3,00

1r ^>
>

Employees
Salsri es
$ 3 s4 0 1 o 3 1
3 , 0 3 9 o64
S

300•11
1 6 9 o 14

Other
Expense

Total
Sxpeng--

59o97
8 o65

$ 3,461o38
3 033,39

3 c 00

205*11
169 8 3

63

During 1939 this unit sent and received over our leased wire
4 5 ;446 messages, an increase of 1,344 messages over 1938 when 44,303
telegrams were handledo

In 1939 we received 37,463 messages and sent

17,984, and in 1938 we received 37s208 and forwarded 16,994 telegrams
over the leased wireG
The number of words sent over the leased wire during 1929 was
439,214 and in 1928 4139986, an increase of 36,238 wordSo
Total cost of the telegraph unit in 1929 was $14,809o15 and in
1928 was $14,113o37, the major portion of the increased expense being a
result of the larger number of wire transfers made for member banks and
currency and coin orders received by telegraph*

The cost of telegrams

ordering currency and coin and also messages in connection with transfers
of funds for member banks are borne by us, so that we have only partial
control of the expenses of this unit*

The average number of employees

assigned to this unit in 1929 was l o70 with a salary expense of $3,713o31
and in 1928 was 1«74 employees with $3,574*11 of salaries applicable to
this unito

Cost of commercial messages in 1929 was $4,818*99 and in 1928

was $4,789003o

Leased wire rental paid during 1929 was $7,136o08 as com­

pared to $6,561 e53 for 1938, the majority of the increase being the re«*
suit of the greater number of words sent in 19390
Leased wire rental is based upon the number of words sent by
each Federal Reserve Bank with the exception of certain messages forward­
ed by the Federal Reserve Bank of New York for the benefit of the re^
ceiving Federal Reserve Bankso

The Treasury Department pays the Federal

Reserve Board for its use of the leased wire system and the Federal Re-*’
cerve Board messages are paid by the Federal Reserve Banks in their
leased wire assessments

TELEGRAMS
Month
1929
January
1,36§
February 1,131
March
1,506
1,457
April
1,415
May
June
1,566
1,612
July
1,648
Augu s t
September 1,491
1,749
October
November 1,509
December 1 n531
Total

17 g984




OPERATIONS OF LEASED WIRE
— T S H I S r SENT
TELEGRAMS RECEIVED
1937
1928
1929
1938
1937
1,465
'2728?
27116
1,936
1,177
1,887
1,719
2,033
1,183
1,559
2,333
1,458
3,333
2,433
3,369
1,356
3,138
1,970
1,346
3,107
3,336
3,365
1,442
1,405
3,189
2,334
2,352
1,456
1,453
2,347
3,034
2,425
1,338
1,403
2,284
3,314
2,498
1,373
1,464
3,188
3,293
2,223
1, $16
1,463
3,488
3,316
1,*>39
2,658
1,616
3,189
2,322
3,238
1,553
1,445
_3,387
3 P350
1.548
.1*539
—

16,994

~

17,656

37,460

2? s308
3?,308

35,469
25,469

64

CHECK COLLECTION FUNCTION
(Minneapolis OnlyJ
During 1929 this function handled 21,751,365 items totaling
$3,685,223,581o36? a decrease of 565,821 items but an increase of
195,333,2470 37 over 1938 with 33,317,186 items totaling $3,590,001,333c89o
A comparison of the number and amount of items handled, the aver­
age number of employees and the total expense of the check collection
function for the years 1936 through 1939 is given belowg
Year

Humber of Items

1929
1928
1937
1926

31,751,365
22,317,186
21,916,433
33,108,204

Average Noe
Employees

Amount
$ 3 , 6 8 5 , 3 2 3 , 5 8 1 a33
3 , 5 9 0 , 0 0 1 , 3 3 3 0 09
3 , 3 6 7 , 7 I 3 o9 9 5 d 0
3,487,797,707*11

53«81
60o37
66*43
72.98

Total
Expense
4

8 8 ,6 6 1 o 6 0
95,335o35
1 0 7 , 7 4 1 o29
1 1 7 , 6 1 6 095

Checks handled on member and non-member banks this district de«*
creased 759,301 items as compared to 1928, the figures being 15y613,244
for 1929 and 16,372,445 items for 19280

Checks handled on other Federal

Reserve Districts, on Twin City Banks9 the Treasurer of the United States,
and on Helena, Montana increased a total of 193,380 items during the year
as compared to 1938a

A comparison of the number of items handled by the

various divisions of the check collection function for the period 1937
through IS29 follows &
Items Handled On

1939

Twin City Banks (Clearings)
4,238,866
Member & Non-member Banks
Thie District
15,613,244
Other Federal Reserve Districts
1,037,744
Direct to Member Banks Other
F. Ro Districts
42,440
Helena, Montana
10,879
Treasurer of the United States _ 808„192
Totals

21,751,365

1938

1927

4,200,477

3,852,475

16,372,445
920,503

16,176o997
1,118,880

49,063
10,234
___ 764.464

37,158
11,934
7189989

23,317,186

21,916,423

During the first half of 1929, we began to eliminate the record­
ing of endorsements on our cash letters, recording endorsements only on
Montana cash letters and on the small percentage of items $500 and over
on the other letters*,

This plan is now used by practically all the

Federal Reserve Banks and a large number of the important commercial banksc
Other major changes made during the year were the increasing of the number
of items in a proof run of deposits from 300 checks to approximately
1*000 items and the elimination of the positions of "Section Headsw or
clerks in charge of a group of outgoing cash letter unite and the proof
figures*

By not recording endorsements, except on items $500 and over,




CHECK COLLECTION FUNCTION

(Contd)

each clerk ie able to handle a larger number of Iterne and the number of
proof totals required is greatly reduced,, enabling the central proof
teller to take care of all the control figures9
A comparison of the costs of handling a hundred items in the
various units of the Transit Department for the years 1936 through 1929
follows?
Year
City Checks
Government
Country Checks
Return
___________ (Clearings)_____ Warrants_________(Outgoing)______ Iteam
1929
1928
1927
1926

30o7
19o5
18*3
1805

cents
cents
cents
cents

26,9
37o0
40ol
37c7

cents
cents
cents
cents

3905
33=7
3904
38c8

cents
cents
cents
cents

# 1 **5
l c664
lo502
1063C

The cost of handling all types of items decreased except clear­
ings, which ooets increased from 19c5 cents per hundred in 1938 to 30.7
cents per hundred in 19290

Government check costs decreased materially

from 37 cents per hundred in 1938 to 36o9 cents per hundred in 1929* The
reduction in cost of handling government checks was accomplished partly
through a change in the deposit letters of local banks and also through
the purchase of a sorting rack which facilitates the handling* of the
iternso

The reduction in the cost of handling outgoing country checks

from 32,7 cents in 1938 to 29e5 cents in 1929 indicates a considerable
saving as this class of items represents the bulk of the check collection
functionc

With the present plan in operation for the full year 1930, a

substantial reduction in the total costs as well as the per item costs
of outgoing country checks is anticipated.,

Return items costs decreased

to lc 415 cents per item in 1929 from lo66 cents in 19280
The progress made during the last few years in reducing check
collection costs can also be indicated by the average number of items
handled per person daily in the several units of the check collection
functionc:

A comparison for the years 1926 through 1939 follower

Year

City Checks
(Clearings)
2, o K
'
3,479
2 458
2,345

IS'39”
1928
1927
1923

Government
Warrants
2,065
'
1,452
1,376
1,487

Country Checks
Return
(Outgo ing)_____ Items
1,551443
1,336359
1,1693S4
1,129397

The daily average number of items returned during 1929 wae
1,194 ae compared to 1,139 for 1928=,

These figures inolude checks re­

turned beoause the drawee banke are not on our list and other iteat*
returned without presentation,



CHECK QQLLSCTIOK FUlfQTIQJf

(Contd)

A comparison of our 1939 check collection costs with the average
costs of the Federal Reserve Bank6 (Head Offices), and the average of
their averages so that the large volume of the Federal Reserve Bank of
New York at high costs does not receive greater emphasis than any other
Federal Reserve Bank, indicates that our costs are below the average for
the twelve Federal Reserve Bank head offices,

A comparison of our 1939

costs with the latest available figures for the Federal Reserve System,
the first half year 1929,per hundred items follows:

Our Costs 193$
Average costs F.Ro
Banks Head Offices
Average of Average
costs FcR.Banks,
Head Offices

City Checks
(Clearings)
30o7 cents

Government
Warrants
cents

Country Checks Return
Outgoing
Items
3975 cents
1 17^3

30o4 cents

4106 cents

36o6 cents

1 067

35o9 cents

36«1 cents

330Q cents

1 085

The constant reduction in the number of cash letters sent during
the last five years reflects the bank consolidations, closings and re«
movals from our list of banks upon whom we will handle items for collectionc

The daily average number of letters received and sent as well as

the number of banks reported closed and reopened, and the number of banks
added to and removed from our list during the years 1925 through 1929
are given in the table belows
Year
1929
1938
1927
1926
1925

Letters
Received
(Daily)
1,435
1,604
1,527
1,454
1,588

Letters
Sent
(Daily)
1,416
1. 496
l p588
1,900
3,069

Banks
Reported
Closed
92
103
126
116
140

Banks
Reported
Reopened
7
12
43
51
35

Banks
Removed
From List
73
91
57
31
309

COMPARATIVE STATEMENT SHOWING VOLUME; OF WORK
A
NUMBER OF EMPLOYEES . ND OTHER EXPENSES
CHECK COLLECTION DEPARTMENT
(Minneapolis Only}
NOc of
NOo of Country
Noo City
Goverment
checks received
checks handled checks paid
Year 1929
807,000.
16,705,000.
4,18 6,000.
765,000.
Year 1928
17,352, 000.
4,127,000.
Monthly Average
1,392, 083 e
67,250o
Year 1929
348,833.
1,446, 000 e
63,750.
343,916.
Year 1928

Banks
Added to
Our List
7
8
24
28
50

No o of
return item
checks handled
330,000.
343,000„
30,000.
28,500c

Total
Number of Officers® Number of E m p l o y e e s O t h e r
Expense
Officers
Salaries
Employees Salaries
Expense
1 3,160o00
Year 1929
„45
S0o37
73*736o8I
19’
718*44
95*335^35
l p890o00
Year 1928
c45
Monthly Average
$ 5 , 6 3 0 = 4 1 ? l,578oOS } 7,388c4 %
$
I 8O 0OO
Year 1929
6 , 1 4 3 09Q
l r343o30
",944080
157c50
Year 1928




67

CO

CD

TWIN CITT CLEARINGS THROUGH FEDERAL RESERVE BANK
0? MINNEAPOLIS FOR 1929 AJJD 1928

Ant. of Item*
Month

on Itols. Banks

January
fabraury

156 .319.235.88

March
April
June
July

AugUft
Sepw 4»ar
O etetar

S OHF^W
Daeaafear
T otal*

Arat. of Items
Grand Total
Grand Total
on St.Paul Bks„_______ 1929___________1928

DIRECT SENDINGS TO OTHER RESERVE B A M S
BT OUR MEMBER BANKS I929 AND 1928

Daily Average Amount of
Clearing* hold Orer
1929_______1928

80.551.161.46
67. l l l . 260.7i
83,675,756.21
82,0905694.44
SO.406.000.24
82.264.624.46
88.64l.437.68
81.464,474.20
85.773.467.99
95.438.086.28
84,233,229.58
84,924.187.50

236,870.397.34 227,441,011.70
120,388.32
201,722,369.06 206,020,385.02
225.960.42
24? cl 67,926.68 239,552,624,35
162.752.71
244,868,684.25 224,978,749.00 154,305.52
160,S9*,133.16
241,300,133.40 231,100.824.94 106,748.31
164,286,476.12
246,551.100.58 252,314,909.90 109,877-79
184,437,282.30
273.078,719.98 244,966,581.21 130,268.54
194.557,203.22
276„02i,677.42 244,201,969.50
94,798.85
202,574,002.45
288.347.470.44 272,469,274.57 140,823.77
209.121.467.88
304,559.554.16 324,221,544,39
1 5 1 ,860.31
175.588,638.87
259.821.868.45 273,866,859.W 150,579.80
I69.304n779.97
S4 j 228.967.47 276.jS4.450.15
135,000.32
996^7^380.75
3,017
2
2,079.964,488.48
1.683,364.66
3.076.538,869.23
134,611,108.35
165.492,170.47
162,777,989.81

,

221,460.13
202 885.83
223.449.15
270.832.73
174,434.02

167,923.30

,

185 113.26
176.880.40
227,720.51
214,277.20
185.270.40
U2L
505 016.28

. .

Number of Items
1929
1928

119,544
105,095
119.493
131.761
122 , r
116 , 6;

1929

m

116.990
103.328

128,090
124,926
115,549
127.831
117,501
123.846

Amount

1.

1 1 ,770,152.61

U.213.859.3*

103,104
112,512
115,898
119,124
118 ,3 11
124,879
112,258
130,383
113,611
124,

11.412.137.99
13 .491.013.03
12.927.373.57
1 2 .536.063.38
15,087,733.93
1 3 .319.870.57
12.739,894.97

11.498,744.02
11.389,647.52
12 ,061,105.92
12.292,429.11

10 . .856.04 10,546,647.83
067

12 .546. .61
363

11,438,879.3^
11,773,684.71
15 . .596.45 13,451,992.25
030
1 1 .963.034.38 12.294.583.61
11.140.138.89
151.485,865=81

1.452.909

Atorr*a

l>y Moaviia

173.330,374.04




83,047.865.06

256,378,239.10

251,474,098.71 140.280.39

208,751.36

121,076

116,249

12 .623. 822.15

11,888,224.38

BT MONTHS

COMPARATOR FIOORBS FOR TRAHSIT DEPARTMENT

Dally Average Bomber
of Transit Letters

X3SS.

ISSSL
January
February
March
April
May
June
July
August
September
October
Vovember
December
Average by Months

MGBTH

151 H
1565
15 J8
1658
1616

1 U77

1508
1500

1480
lU83
1396
1358
1358
M 27

1531
1577
15 U0
1600
1691

13

Dally Average Somber
of Transit Letters

________________

1928

1329.

1921

1929

ia&

122 a

132ft

1 U60
11*67
1 U8O
1 U22
1 H17

1521*
1526
1563
1498
1483
lUg6
1 US6
1 U7U
llM>9
1 U94
1US7

1160

1172
1001
966
IO5U
970
11 U0

69.85>»
72.955
7*».236
72.116
70 .0U2
70.196
68.315
60.U23
72,088
7^.108
75.31
*

71.988
72.325
73.967
69.788
71.283
71.U09
67,372
74,684
79.U07
84.31U

69.633

*•598
**777
U78O

4680
^93
U092
U6S8
U315

10^7
1170
1220

1072
IIU9
1156
12 H6

}§

1386
1391
1353

lUl6

Kky

Jbns
July
August
Septenfcer
October
Jfovember
December
 Months
Average by


1U
96

Dally Average Clear­
ing Items Missent

Stott .

1221
January
T^bruary
March
April

1928

1Q29

*7

h6

W

50

U6
*7

*3
U3
U
o

48

U6
I

33
27
28

!&

**9

U5

1BS1

S
II
II

35

lOWt
1 1 U7
1056

1128
1223

1257
1128
1309
1265

1125
1068

llWl
1166

1301
m s.

1377
ms.

119^

1139

Dally Average Out-ofTown Items Mlssent

85.111

71.578

7M73

2U
29
27
*f2
50
36
H

36

122 f
t

21

19

298

300

21

23

20

29
28
22
22
2U

25
32
31
?
°
kj
36
28

1295
1 «W
5
1*68
1507

l&L

1229
1252

U636

1318

lltf*

sg

W 77
US29
U9U0

Dally AVo Ho» Drafts
Received In Other
Dally Average Bamthan Twin OltT tech. her of flgplovses

1929

22

1220

1159
1181
1181
1082
1182

>*582

H796

1928

25

1197
1299
1289

UQffS

S I

79.260

122 *

25
30
28

5068

U927
U627
>♦815
^734
U896
1495k

22
22

36

50
U
9

53
U2
*3
U2

5°

Dally Average Somber
of items Per Person

1321

13®
13ft

Ing Items Retoroed

Dally Av»Trans.Items
Sent Direct "by Oar

1428

160M
.

1**35

Dally Average All
Other Items Sent

iqg>

1771
lfei

1437
1W 8

Dally Average Somber
of Re t o m Items

MIRH2APQLZS OHLT

299
29^
279
282
281
272

267
265

299

302
29U
301

295
293
286
283

1329

1928

69
67

70
69
67

68
66

65

68
68

68
68
67
67
69
20
68

61
65
62

292

§2

263
261
2£L

29^
2ZZ

56
5k
53
51

29

277

293

61

70

FEDZHJl ESSCH7I BASK OF mmttAPOLIS
L
mcpniw mr m g traitsit dbtammemt io s tag t u b 1929

a m i f wnn-MMwi^
1989

JttWiMiyy 3 5 8 ,S15
W mtgmtf 318.39?
70 . 65^
Ip riX
s ®
%

163 , 630. 70**.*©

136.296.707.81
172 .736.511.72

168.188.383.9S

. .
175.819.892.50

169 558 975.77

U6.933
ltd /
53.644
August
U .W
7 30
Soptoabor 37.819

193.906.131.S8
2 0 0,136.713.**

205,309.928. > 3
»

Ootobor

212,966,979.89

181,851,1120.88

B :S
s a j fit

D to o ab o r

Total

Kumbor

Amount

Baabog

179.OTS.07S.63

4 ,2 3 8 ,8 6 6
$2,159,437,425.99

O BB SSSSR7S BASKS
TH

Amount

1 , 306,312
1 , 157.107
1 , 341.251
1.333.259
1 . 299.669
1 , 252,652

rt,7>*7.438.53

1,259,528

9 2 .1 5 2 .59**.17
89.269.502.55
98.359.571.85
106,392.172.90
91,734,509.02

1,222,87**
1,21*3.950
1,1*1*1,343
1.^ 0 5.89°
im

. .

68 911 508,01
82,227,210.80
8 5 .2 7 9 . 63U.O8
86.716,133.27
87.**19,998 .85

.46^538,086, ^

Bomber

86,298
68,589
81.531
91,916
82,222
81,702
92,093
85,1*30
83.271
99,01*6
85.529
i p o .m

Amount

DISJECT TO BABES IV
OTHER a a a g g PIST810TS
WnmlmT

24 . 050, 556.33 1*,215
19 , 500, 762.02 3.760
2 3.331.838.39 4,193
25 , 1 1 2 , 669.91 3 .8 g
25 . 006. 629.39
25 . 530. 869.29
30.260.781.lt0 3>>8
25 , 863, 1*63.30 3.063
25.805.1*25.01 2.819
30,109,464.49 3.038
25 . 292. 873 . 1*8 .159
2-i.8S7.71S.2S I ,2 2 5

Amnnnt

1 0

00H HEUEKA BHAHCH
S I 08_________

gumber

4 .5 5 9 .4 5 1 .6 6
3 , ,(
520 1 21.88
5 ,2 9 5 .2 7 6 .3 2
4 ,302,0 0 7 .2 5

9k l
m
971

1*. 594.256 .86
>*.825,162.89
I .5 16 ,
*
285.56

916
836

»,181,850.08
*

,614,202.12
,112,308.1*1

744

80 *

90S

I .597.962.13
926
jLQgk
4 . 3? l . f t 5. 6t

Anount

21*1 , 1(05.39
260. 095.30
293 , 680.26
196 .lj35 . 2u

THEASUKER OF THE
OTITEP STATES

Boabor
£0, 72 ?
56 . 29U
57 . 29U
77.031

imMI
8.737.0U1.59

7,286.011.29

223,30 18 1
200, 833 . 51*

8,038,775»2^
8,1*57.597.71
8.137.593.01
70.035
69.300 7.842,134.18
67 ,01*8 12.270.910 .68
66,358 8,082,4*(1.91

170,41**. 33
21*3.875.27
220 . 316.31
355.695, JQ,

82,46o 10,1(71,738.51
9 . 118 , 755.44
72.503
9.146.474.58
67., 759

255.683.77

218.784.54

61.381

8,2*(1,950.18

U2,Ul40
808,192
15.613.21*1*
_
1.037.7U4
10,879
12,880,521.1*7
* 303, 723 . 01*8.26
$53,622,801.03
$ 105 , 831 , **2**. 3U
*1.059.728,360.17

Monthly
Jet. Bo.
Itm a

1 , 301 , 101*

353,239

906

3.536

86,1*78

Ib&thly
At . Ants.

$88,310, 695.sU

$179,953,118.83

Qrand toted items
Grand total amounts




2 1 , 751.365

$3 ,6^5 , ,581.26
223

$25 , 310 , 251*,02

$**,1*68,566.75

67,3U9

$21(0,01*3.1(5

$8,819,285.36

tH
2>*

MINNEAPOLIS AND HBIM k BRANCH
OPERATIONS OP CHECK CLEANING AHD C0LLSCTI05 DSPARTMBJT
Detailed Classification, Numbers and Amounts of Items Handled by Months daring 1929 with totals for 1925, 1926, 1927, 1928 and 1929.
(In thousands only «000 omitted)
ITEMS D R A M OS B A M S IK QT?H DISTRICT
Month

1929

Local Banks

Hoc

Amount

Ourselves

Q^her Bank^

Ho,

Amount

N
o*

10

SO,396
70,888
77,696
71.910
76,80*1
86S
U66
8H.335
96,032
87.>*70

1 H5H

Jan0
151.306
373
Pe\>0
332
127.525
Mar0
l60;gl»
387
April
383
155,055
380
156,020
Hay
June
360
157.635
July
177.686
367
August
361
177.977
Sept*
352
I83069W
Oct.
387
192,397
161 1852
Icnr.
353
Dec*
-.313___ .
15.6.163?.

9
9
9
9
JL

Total

108 1,002,892

V*08 l ,,958,623

1929
1928
1927
1926

1925




7
9
9
9
9

10

100,825

82,^99

-JBL5Z31

A u
jtjo j
95,557

1288

77,5%
93,1^1
97.253
98,752
99.876

1505
1511

w

1 U 16

1**22

1080881
102 o828

1625
1^68
i&i

111.799
1 2 6 ,2 1 3

xohjki
-

3 S L S 2& .

17602 1,2150508

Interchanged
Branch and
Head Office

ITEMS DRAWN OH BANKS HOT IN 9 PH DIST.
Other federal Reserve Districts
Direct
Other Reserve
Treasurer of
Sendings
Banks
United States

Ho0 Amount

No.

Amount

2
2
2
2
2
2
2
2
2
2
2
2

1,2H6
979
1,281
1,087
lol51
1,225
i»**oi
1,556
1,7%
1,853
1,663
1,555

k
k
k
h
k
3
3
3
3
3
3
U

2 * 16,7*40
*

U2

No,

H .559
3.520 lh
4,295 88
H .302 99
i isu
*,
89
l*,59>* 89
4,825 100
U.516 92
U,6lU 89
5,112 106
i*,598 9
**
U.502 108

53,621 1121

TOTAL FOR

TOTAL FOR

- ...1,9 3 _
,£ _

-jagg,.

Ho,

Amount

Ho

27. &
0
73
21.773 68
25.971 68
27,61*0 89
28,006 83
28.323 82
33.680 83
28.8U7 81
28,772 77
33.964 99
28,815 88
26 ™
I9L

io0 5
Ui
80651
9*^5

2009
17 7 5
2063
2097

Amount

339c379

Amount

No.

370,533 19U 1
310e881 igUo
3720673 2 13 5
9,818
367,065 1976
9.^57
37^.37*4- 203U
19 6 1
9 .269
387,383 206 U
13.912 1987 ^ ,7 2 0
1967
9.75^ 19 U7 1*21,510 2001
19^8 **28,368 2005
10 ,2 7 6
72,789 2395
I2,te5 2 2 3 1 1*
10,U97 2 0 17 39M 65 2 16 2
J£L!m. -2191 JfflkM. _g35S.
1^*,819

2 U275 U-711 582

g S E lir.7,ii.8 ,g
5S.

2I+S7 H

»

2 U 238
25286

Amount

331.56?
3 0 1,5 6 6

338,791
3%. 877
35^.585
390,836
372,39>*
389.258
413.379
£10,821*

4?5,gl(0
jasjjjff.
ht5 9 1,7 6 6

^ 7591.-766

it,2 7 7 ,1 5 2
U,3 3 6 ,1*50
26551 U,009c206

HELENA BRANCH
REPORT OF THE TRANSIT DEPARTMENT FOR THE YEAR 1929

Number

Clearings
Amount

January
19,000
17,000
February
21,000
M&roh
April
19,000
20,000
May
Juno
18,000
July
19 ,000
183000
August
September
18,000
Ootober
IS ,000
November
17,000
December
18^000
Totals
222,666
Monthly Aver 0
Items
1 8 o500
Monthly Aver 0
Amount

Member & Ion-*Msmb®r
Jfumber
Amount

Drafts on TTs
Hamber
Amount

# 9,5300000

3 £,000
2,000
7 0704,000
3,000
9 £>340 £>000
9 £>707,000
3,000
9 ,8 8 0 ,0 0 0
3,000
3,000
9 ,6 3 5 ,0 0 0
11 ,5 5 8 ,0 0 0
3,000
11 <>065 pO O 3,000
O
3,000
10 p
642,000
3,000
12,646 j>000
3 ,000
12,250,000
1 0 ,5 1 1 0O O 3 ,0 0 0
O
fiJ&piSdpflio 3$,666 '

$

9 ,8 2 0 ,0 0 0
7,5910000
9 ,5 9 1 ,0 0 0
9 ,6 4 6 ,0 0 0
1 0 013S,000
1 0 ,6 7 1 0000
10,690,000
9 ,9 6 6 ,0 0 0
10,567,000
12,112,000
10,176,000
1 0 ,7 9 8 r000

$ 10^810,000
Q„833?000
10 ,9 1 4 ,0 0 0
11 C
973,00Q
1 2 ,0 3 6 ,0 0 0
1 2 ,4 5 6 ,0 0 0

16,728,000
13,578,000
13,439,000
19,821 £>000
13,006,000
12,384,000

176,000

172,000

184,000
162,000
175,000

■fT^iTT^r;^ f7§ 806o

$15^773^600

166,000

3D
000
1 0 ,3 7 2 0000

148^000
131,000
164,000
178,000
1 7 4 ,000
163 pO O
O
162,000

12,981,500

10,147,000

tfo fteaci 6?f*ioe f)y #s
Number
Amount
January
February
March
April
May
June
July
August
September
October
November
December
Totals
Monthly Aver®
Items
Monthly Aver0
Amount

¥o Other Res err© Banks""
Number
Amount

Treasure r of t 0 S e *
l
Humber
Amount

1,000
1,000

7,000
5,000
6,000
7,000
7 £>000
7,000
8,000
7,000
6,000
7,000
8,000
8,000

12 £,000
12,000
11D000
12 £,000
13 £,000
130000
16,000
15,000

i0
ooo
i0
ooo
loOOO
1 P000
l c000
1 0OOO
l s000
l 0OOO

i0
ooo

l o000
12,000

|

1,005,000
719,000
987 pOOO
891,000
895,000
1,006 O000
1,178,000
1,355,000
1,573,000
1,609,000
1,443,000
1,199,000

1,000




UM66

f 3,003,000
2,272,000
2,639,000
2,527,000
2,999*000
2,792,000
3,419,000
2,984,000
2,967,000
3,855,000
3*822,000
2,673,00#

w

17,000
\5*000

1,678,000

1,365,000
1,406,000
1 £,360^000
1,319,000
1,427,000
1,641,000
1,672,000
2,0?^,000
1,953 £>000
1,3?8,00C
1 ;>7SA ,000

llt,Wp66tf

^

7,000
1,155,000

IfpOCO

|

14,000
2,071oOOO

GRAI^ TOTAL OP II
GRAND TOTAL OF AMOUNTS

-

1,582,000

2,504 *000
-

#470,512,000

ION~OASH COLLECTION FUMOTIOM
{janneapolis Only)"

The volume of non-cash collections handled during 1939,other
than Government Coupons, decreased 37,140 as compared to 1938*

Col**

lections handled during 1939 numbered 349,173 totaling $116B651&511049
and in 1938 we handled 376,314 items totaling #131,3S5,885o55o
City collections handled in 1939 were 135f419 totaling
$60 9343,843*83j a decrease of 39,393 collections and $4,810,771*06
,
in amount as compared to 1938 with 184,711 items totaling $65,053,613*88o
The major part of the decrease was in the number of grain drafts handle
edo

Country collections handled during 1939 decreased 3,487 items
and $546,495ol3 in comparison with 1938®

In 1939 56,691 country col~

lections totaling $37,363,955*33 were handled and in the 1938 period
60,178 collections amounting to $37,909,450o45o
Security collections, other than Government Coupons, increased
in number and amount in 1939 in comparison with the year 1938 o

During

1939 this unit handled 570064 items totaling #39,045,713o34 and in
1938 510435 collections totaling $38,403,831o310 A part of the increase
in security collections handled may be attributed to the larger number
of coupons clipped from securities held in safekeeping during 1939
than in 1938»
Collections sent direct by our member banks to other Federal
Reserve Banks for their account with us during 1939 were S v436 totals
ing $18,833,595o93o
The average cost of handling collections, other than Government
coupons during 1939 was 10o31 cents and during 1938 9 o07 cents®
GOVERNMENT COUPON UNIT
During 1939 this Unit handled 538,370 Government and Federal
Land Bank coupons totaling $10,083,395063 as compared to 743,154 items
totaling $ 9 06305715o98 in the 1938 year periodo

The total expense of

the unit decreased from $3,366o98 in 1938 to $3,127035 in 19390

The

cost per item increased from 30o54 cents per hundred coupons in 1938
to 39n50 cents per hundred items in 1939«




73

coujctioi p p i m m b b t

ccawsAira mtssuan shoixbo bonbeb or bos-cash cqujkstiobs
MB&BS, -MMMB-O* BMPtOmg. SAIUHIBS ASP QTS8B fflgims,
total Bo.
la, of Officer* Io„ of
Collection* Off1~ Salaries Baploy*
.J3*s41si__ cer*_____________ eee
Tear 1929
Tear 1928

249,174
276,214

$ 960,00
840,00

20
.20

Monthly Average
Tear 1929
20,765
Tear 1928
23,026

City Collection!
1929 _
JanQ 10,310
Feb, 10*079
liaro 1 * 588
0.
April 8,782
May
8,938
June 9,231
July 9,378
Anguetl3056S
Septo 170277
Octo 16,7380
lOYo 10,667
Dec0_JUuJ&L.
Total
135,419

Other
Total
Bspecea
Expense
________________

$21,601,11 $ 3,236,03 $ 26,697,14
3,790,77
25,076®
2 , 444,80
0,

16,01
15,21

$ 80,00
70,00

o m M m ,

taployeee
Salarie*

* 1.791,76
1,702,73

269,67
316,90

2,141,43
2,089,63

1939 - 1927
(ttlaneapeli* Only)
Country CoXlectlone

Security Collect ion*

Total Collections

1928
l t 073
i,
11,100
120653
11,164
12,481
11o710
10,686
13,1^0
17,011
22,719
160711
14a 253

1929
4,882
5,250
5*734
40774
5*016
4,026
4„025
3,913
4,384
5,150
4,806
4.731

1928
5,159
4,897
5,239
4,892
5,147
4,996
4,450
4„380
40740
5,530
5,337

1929
4,952
3,869
4,157
5*025
4 .822
5,423
4,870
4,174
4,207
4,864
4,969
5.732

1928
4,511
3,474
3,668
4,259
4,309
4,698
4»716
4,014
3,447
4,683
4,455
5-191

J£29 — 1928
20,144 20,743
19,198 19,471
20,479 21,560
18,581 20, 315
18,776 21,917
18,680 21,404
18,273 19,852
20c655 21,564
25,868 25,198
26,394 32,932
20,442 26,503
- 24,855

164,711

56,691

600178

570064

51,425

2490174 2760314

coupABAfivs B u m a a n seowiio m a m or ootxrhmsbt coupom
S A U P TttS m OTOBB PPIW8IS,
Bomber of

Coupons
Bandied

Tear 1929
Tear 1928

538,270
742,154

Monthly Average
Tear 1929
440855
Tear 1928
61,843




Humber
of
lo24
1,37

Baployoes

Salaries

Other
SsEtmae

fetal
k«ree&ea

$ l,815o?0
l?910o48

$ 3llc55
356(50
1

$ 2,127,25
2r266,98

151,31
159.20

25.96
29071

$

177*27
188a92

74

FEDERAL RESERVE AQSNT8S OFFICE
In order that the costs* as 8bown on the following page, of
certain operation*? handled by the Federal Reserve Agent’ office may toe
s
better u^derstoode a brief explanation of the operations charged to
the various units is given here.
STATISTICAL
Includes all work incident, to the operation of a statistical
bureau such as gathering information^ preparation and tabulation of
questionnaires, charts& graphs and other data for use of the Federal Re­
serve Board and bank officer^

It includes weekly condition reports of

selected member banks* weekly reports of bank debits, tabulation of clear­
ing house statements and compilation of annual reporte Also all work in­
cident to the preparation of the report issued monthly on business condi­
tions ^ except printing^ paper stockb envelopes and postage**
MONTHLY LETTER

Includes only the cost of printing (including any special plates)9
paper stock, envelopes* and postage used in connection with the Monthly
R e p o r t o f B u s i n e s s Conditions*.

UBKAftr

Includes all

incident to the maintenance and operation

work

of

a

reference library, including tabulation of information^ clippings and the
cost

all subscriptions

of

to

the e x c l u s i v e u s e of an o t h e r

fiction

or r e c r e a t i o n a l

periodicals„ books* etc0c except
expense

uni

to

*hen for

Does not include expense of

library®

BAKE EXAMINATIONS
Includes field

examination of state members and other

applying for membership^ investigations
with

applications for

.National

banks

National bank

and

ports

Passes

on

a p p l i c a t i o n s of

on applications under

and on applications for acceptance powers*

banks

recommendations in connection

charterso

for fiduciary powers,

state

Glayton

Act^

Analysing bank examiner"s

re­

c a l l r e p o r t s of c o n d i t i o n a n d r e p o r ts of e a r n i n g s a n d di v i d en d s o

And all other work incident
FEDERAL RESERVE NOTE

to t h i s u n i t e

ISSUE

Includes those operations oi the Federal Reterve Agent*s office
incident to the issue of Federal Re*eX'*e no^et-< Do*ft v&t include original
lost of currency or the



of

SAITCL
TTSIA
(including Administration)
Number of
Year 1929
Year 1928

Offloor#
| 2 p100,04
2,100.04

o50
oSO

Monthly Average
Year 1929
Year 1928

|

Employees
Salaries

Number of
|

4,05
4o36

8,035,85
7,834,69

| 1,780.98 * 11,916,87
ll,505ol6
l,670o45

MONTHLY LETTER

995.07
958.76

148.41
130 087

669,65
652.89

175oOO
175,00

Total

Other

Postage
|

Monthly Average

Year 1929
Year 1928

599017
1,000oOO

$ 2,422.12
2,393,37

3,021029
3,593.37

*

Tear 1929
Tear 1928

Printing and
Stationery

49.93
83 033

201,84
199,45

251o77
282,78

Total

LIBRARY
______Employees
Year 1929
Year 1928

Number of
Salaries
l o00
lo00

Monthly Average
Year 1929
Year 1928

Nenrs Service k
Subscriptions
Books
$ l,020o00
960.00
$

85,00
80.00

Other
Expense

Total
Expense

| 506*92
452089

$ 229,89
354,26

f 118.95
117.28

|

l,875o76
1,884.43

|

|

f

*

156,31
157o03

42.24
37.74

19.16
29,52

9.91
9.77

oATm E&AMIHATIOIIS
Number of
Officers
Year 1929
Year 1928
Monthly Average
Year 1929
Year 1928

Officers
Salaries

094 | 6,580.00
6,110«00
,94
*

Number of
Employees

Employees
Salaries

3,20 f 8,184.00 $8,622,61
3,23
7,475,58 11,258,18

548,33
509,17

#

Total
Expense

Other
Expense

682.00 |
622.96

716,55
938,18

$ 25,386,61
24,843o76
|

1,948,88
2,070,51

FEDERAL RESERVE NOTE ISSUES
Ntxmber of Offioers
Offioers
Salaries
Year 1929
Year 1928

Number of
Employees

.21 | 1,470.02
1,440,02
,21

o80
o77

Monthly Average
Year 1929

122,50

Year 1928

120,00




Other
Expense

Total
Expense

2,915087 1
2,620,83

59.12
38,92

| 4,445.01
4*099 077

$

4,93
3,24

Employees
Salaries
I

$

242,99
218 o40

$

3700
42
341,64

BANK EXAMISATIOS DEPARTMENT

A O U A L
Federal Reserve Board8s letter X-6223, dated January 26, 1929, in effect
ruled that the expense of examination of state member banks made by Federal reserve
examiners must be assessed against the banks examined. Prior to the receipt of the
above letter, our examiners had made oredit investigations of five state member banks
After receiving tho abovs letter* permission was obtained from the Federal Reserve
Board to examine five state member banks without assessing the oost of examination
against the banks examined. However, only three of those banks were examinedo In
addition to oredit Investigations and bank examinations, our examiners made special
visits to a number of banks in the district in connection with bank relations worko
The following is a summary of the examinations and special visits madet
State Banks

Michigan
Minnesota
Montana
North Dakota
South Dakota
Wisconsin

Examinations
6
l
1
0
5
1

TT
20
11
0
13
0

Summary of Examinations, Visits, and Mileage

Fo
H.
H.
A.

M.
D.
C.
A.

Bailey
Sharratt
Jones
Hoerr

Examinations

6

7
1
0
---- r ~

Visits

f

20
11
6
— 3T ~

No® of
Miles
Traveled
T.c£oo
11,868
3,198
770
"17 7542

Office Work
Reports of Examination of National Banks
No. of reports received from the diiief National Bank Examiner's Office.o.o.o
(The cost of these reports aggregated |6,765cOO for the calendar year)

1<>352

151 duplicate copies of the reports of examination of Montana National Banks
were received from the Chief Examiner1s Office, and the cost of these addi­
tional copies aggregated |339o75 for the yearc
All of the oritioisable paper contained in the reports of examination of banks
that borrow, with the exception of Montana banks * was listed for the Discount
Department 6
Reports of Examination of State Member Banks
No* of reports of examination received from the various State Banking Departments
in the Ninth District of state member banks examined independently by them were as
follows t
State
Michigan
Minnesota
Montana
South Dakota
Wisconsin




No0 of Reports
........... .. ’« £m

15
54
10
2

Cost

« ITTb
-

170oOO
o

20.00

2>
<

reports of ox&^^^oxks mod credit investigations made prior to January 29>
1929 by Federal reserve examiners in the Ninth District wore typewritten in this offioe 0
One copy was forwarded to the Federal Reserve Board and one copy retained for our files o
In the examination of state member banks * one oopy of the examination report was for­
warded to the State Banking Department0 Subsequent to January 29 p 1929, an analysis of
each examination report received from the various State Departments was made on forms
furnished by the Federal Reserve Board« One copy was forwarded to the Board and one oopy
retained in our fileso
Alphabetical lists of all oriticised paper contained in the examination re®
ports of all state banks 0 with the exception of Montana banks 9 were made for the Di»«
count Department c
All examination reports 9 both state and national9 were analysed on compara­
tive analysis sheets, one copy furnished to Governor Geery and one to Deputy Governor
Yaeger0 These sheets also contain a brief summary of the examiner's conclusions and
a general statement as to the condition of the bank® Ratio and percentage a n a l y s e s
were also made and written up on cards filed in the Agent's Office9 which indioate
the progress made by each bank as shown by successive examinations 0 These ratio cards
set forth by a percentage cf eapital stock and surplus "Degree of Solvency” "Credit
,
Policy", and "Miscellaneous Administrative Facts” and the situation as to liquidity
9
by a percentage of various asset accounts as to total deposits0
When state member banks were shown by reports of examination to be in an un­
safe or unsatisfactory condition^ special letters were written either to the bank or
to the State Superintendent of Banks, calling attention to the unsatisfactory and
criticised matters 9 with a request or direotion that corrective action be taken, A
list of closed banks and banks in a seriously overextended condition that were indebted
to the Federal reserve bank as of May 31 and November 30 was compiled and forwarded to
the Federal Reeerve Board shortly after the close of business on eaoh of the above dates 0
Reports of Earnings and Dividends and Reports of Condition
Approximately 4 0200 reports of earnings and dividends and reports of condi*
tion were received9 checked and recorded©
Applications for permission to exercise fiduciary powers approved9 etoB
The following applications for permission to exercise fiduciary powers were
approved by the Federal Reserve Board during 1929 s
Date
Name of Bank
Location
Approved
Capital
Powers
pirsi i American Nat°l Bk0
s
Duluth* Mirau
-49 f^,dbo»ooo
Fulf
First National Bank
Hastingsp Minn0
12-10-29
600
000
Full
First National Bank
Mankato» Minn 0
Full
10-31-29
250,000
Northfield Nat^l B k0 & Tr0Co0 Northfield D Minn0
Full
100O000
6-14-29
First National Bank
Proctor, Minn0
Full
8-6®29
50p000
100,000
Full
Security Nat9l Bko & Tr 0 CoD Red Wing* Minn0
11-25-29
American National Bank
St. Paul p Minn0
5-23-29
500 0OOO
Full
Full
First National Bank
10- 1-29 6*000,000
Sto Paul, Minn0
11-26-29
100*000
Full
Dakota Natcl Bk„ i Tr0 Co0
t
Bismarck* N D
o o
Merchants Nat U1 B k 0 & Tr0 Co0 Fargo£ N. Do
4-29-29
>
Full
250P000
First National Bank
Grand Forks D N Do
o
10-1-29
400D000
Full
Red River Nat ° Bk. & Tr0 CO Grand Forks, N Do
1
o
o
200^000
Full
7-18-29
James River National Bank
Jamestown, N Do
o
10-31-29
100p000 Additional
National Bank & Trust CoQ
Jc*mestown8 N Do
o
Full
6-20-29
100P000
o
Full
Amerioan Nat«l Bko & Tr0 Co<> Valley City, N Do
100o000
10-15-29
National Bank of
Full
Valley City, N Do
o
8-22-29
100c000
Aberdeen Nat»l Bko S Tr. Co* Aberdeen, So D
t
o
11-21-29
lOOpOOO Additional
First National Bank in
25,000
9-4- 29
Limited
Arlington, So D
o
25,000
Chamberlain* So Do
Full
9-3- 29
First Nat ° Bko 4 Tr0 CoQ
1
|Charter not yet issued)
National Bank of Huron
Huron, S c D
©
2-27-29
150p000
Full
100^000
Vermillion* So Do
First Nat°l Bko & Tr0 Co0
6-12-29
Full
Tanktonc So Do
50 j,000 Additional
First Nat'l Bko & Tr<> CoQ
11- 6-29
The following applications for permission to exercise fiduciary powers were
filed with the Federal Reserve Boards
Security National Bank
First National Bank




Brookingss So D
o
Rice Lake, WiSo

Held pending
Refused

50r000
50^000

Full
Full

78

Twelve applications of individuals for permission to 8err© at the same time
as direotors* officers 0 or employees of a member bank anc? not more than tiro other bank­
ing institutions under the Clayton Aot, were received and approved by the Federal Re­
serve Board during 1929 0
One hundred and seventy-six applications affecting the stockholdings of mem­
ber banks in the Federal Reserve Bank were received and approved during the yearQ
Applications for National Charters
Total number of applications referred to this office for recommendation©..0©36
(Of these, 24 were granted charters by the Comptroller of the Currency,
charters were refused to 4 f the organization was incomplete as to 6 on
December 31 „ 1929p and 2 were abandoned©)
Information regarding suspended banks obtained from State Superintendents
During the vsar at the request of the Federal Reserve Board, we mailed forms to
each State Superintendent of Banksp requesting information on suspended nonmember banks0
These forms show the capital, surplus9 deposits and borrowed money of the banks at the
date of closing} also the primary cause of closing and contributing causes. When the in*
formation is received from the -various State Superintendents 6 it is forwarded to the
Federal Reserve BoardQ

BANK CHANGES IN 1929

m m i m nmm m m m m m m rn m m m m m

Total namber of member banks in the district Jan0 l p 1929o©•0•o©©..o0©*0e«.oo
New national banks organised......... •oooooooooooooooooooooooooooooooooooooooooop
State banks admitted.... •ooesooosoooooocoosooosoooseooscooeoooQOOoooooooooooo

730
24
0
764

National banks absorbed by nonmember state institutions©0.».<,©©©.©.©.oo«
7
National banks absorbed by member state institutionso....c.o.ooo..oo©.©o
1
National banks absorbed by other national banks... *......... ........ ©©o 7
National banks consolidated with other national bank? ...o©©©©,,©.©©©©..©o
3
National banks succeeded by nonoember state i n s t i t u t i o n s . . . . 0.©©©o 1
National banks succeeded by other national banks..... .
16
National backs liquidated© «o0000000000oo©ooc>oo©0 oooooooooco©©ooo©ooooeoo 12
>
State member banks absorbed by nonmember state institutions©..©©©©©©©©**
2
S'sato member bank withdrawals©00 oo«00 ooo«000000000000000 oo©oo*©o0000000 » 3

62

Total number of member banks at the end of the year..o©©.„.©.©©«,.o©.©ooco.

State

McilTgan•Qoooo.«.a«o..».»oooo
1

Minne S Ota ooono.oooooooecoo.oo
Montana »oocooo««oooooo.o»...o
North Dakotaooooo.eoooooosooo
South Dakotaooooooooooooooooo©
W is cons in 00000000000000000000

State Member

' Banks

702

National

feankrs"*
— 3T~

12
21
0

127

9
3

47

IT

275
68

94

g5o

A© Membership
At the close of the year, there were 702 member banks in this district, as
compared with 730 member banks at the beginning of the year. There was a net loss of
23 national banks and 5 state banks© The total membership at the close of 1929 was
divided into 650 national banks and 52 state banks. The new members are*




Total

“ T
I
287
89
127
103
50

4.
Nam© of Bank

Location

]£1KKi»&C«4

No. of Sh&r«fl
iubsoriVed

fl*w j’
rirst S&tion&l Bank iat
The National Bari* of
First National Bank in
The Minnesota National Bank of
The American National Bank in
First National Bank in
ftorthf13Id National Bank t Trust Co0
The Pipestone l^tional Barft
The Security National Bank & Trust Co© of .
The Security National Bank of

ISBoy"
•
Benson
Deer Creek
East Grand Forks
Little Falls
Moorhead
Northfield
Fipestone
Red Wing
Willmar

25
42
17
36
75
90
90
50
90
75

The National Park Bank in

MONTANA
Livingston

120

The Dakota Nav,. *ml Bank & Tran I Go e of
Tbs! First National Bank in
The Merehuni>* Natioml Bank & Trust Co® of
First iTafcit cal Bank in Glen Ullin
Red River National Bank & Trust Co0 of
The National Bank k Trust Co0 of
The American National Bank & Trust Co0 of
The National Bank of

NORTH DAKOTA
Bismarck
Cooperstcrwn
Fargo
Glen Ullin
Grand Forks
Jamestown
Valley City
Valley City

90
36
180
21
150
75
75
75

First National Bank in
The Farmers Natioml Bank of
T F a r m e r s & Merchants National Bai-ic in
Thci First Natioml B&sifc in
Th® ?irst‘ tonal Bank & Trust Co0 of
f?.

SOUTH DAKOTA
Xr lington
Fairfax
Milbank
Mt. Vernon
Verailte*

18
18
45
18
90

MEMBER BANKS SEVERING CONNECTIONS WITH THIS FEDERAL RESERVE BANK DURING 1929
NATIONAL BANKS ABSORBED BT NONMEMBER STATE INSTITUTIONS
No. of Shares
1.... " ’
Date
Name of Bank
Location
&urrenc[erea
Fir 8*b National Bank
Granite Falls, Minn0
£1
(Absorbed by Granite Falls Bank)
7«>20“ First National Bank
29
Pequot, Minn,
17
(Absorbed by Farmers State Bank, Pequot)
1-24-29 First National Bank
Raymond, Mixuu
19
(Absorbed by Farmers State Bank, Raymond)
12- 3-29 First National Bank
Springfield p Minn0
42
(Absorbed by Farmers State Bank, Springfield)
9*27^29 First National Bank
Willmar, Minn,
72
(Absorbed by Bank of Willmar)
8- 8-29 First National Bank
Libby, Mont0
31
(Absorbed by First State Bank, Libby)
8-13=’ First National Bank
29
Underwood, N Do
o
18
(Absorbed by Security State Bank, Underwood)
4*12-29

NATIONAL BANK ABSORBED BY MEMBER STATE INSTITUTION
First National Bank
Fuller ton, N. l o
b
(Absorbed by Farmers State Bank, - Fullerton)

NATIONAL BANKS ABSORBED BY OTHER NATIONAL BANKS
10-25“ First Nationai Bank
29
& :ke Benton ] iEnn0
(Absorbed by National Citizens Bank, Lake Benton)
10~30«29 Bankers National Bank
Minneapolis, Minn0
(Absorbed by Metropolitan National Bank, Minneapolis)
8-19-29 National Bank of Wheaton
Wheaton, Minnc
(Absorbed by First National Bank, Wheaton)
10-28-29 First National Bank
Savage, Mont0
(Absorbed by The Sidney National Bank, Sidney)
9-13-2S Dakota National Bank
Aberdeen, So Do
(Absorbed by First National Bank, Aberdeen)
4- 8-29 Security National Bank
Alexandria, S 0 D c
(Absorbed by First National Bank in Alexandria)
5“ 2-29 First National Bank
Florence, So Do
(Absorbed by First National Bank0 Watertown, So Do)



17

24
180
30

21
45
24
20

80

So
N A T IO N A L

5-2- 29
4-2- 29
8-8* 29

12-20^29

lQ-25^29
9* 6-29
8-19 -2 9

10^25^29
9~18-29
2-23-29
9-13-29
8-19-29
11-13-29
9-19^29
6-2&>29
4-26^29
5-13-29
3-21-29
8*19-29
8-21-29

4-9- 29
2-23-29
4-2- 29
8-8- 29
6—28—29
9-26-29
7-27-29
8-20-29
10^25-29
10-10-29
4-2- 29
1-10-29
2-18-29
4-23-29

12-26°29
7-24-29

11»20~29

BANKS

C O N S O L ID A T E D W IT H

O TH ER

N A T IO N A L B A M S

Americas. Exchange National Bank
DuluthB Minn0
"Consolidated with First National Bank, Duluth, under title
"First & American National Bank" „)
Merchants National Bank
St0 Paul, Minnc
(Consolidated with First National Bank* Ste Paul)
Northwestern National Bank
Grand Forks, N o D o
(Consolidated with First National Bank, Grand Forks)
NATIONAL BANK SUCCEEDED BY NONMBMBER STATE INSTITUTION
Brookings National BanJc
— — grookings, So D.
(Sucoeeded by Brookings County Bank, Brookings)
NATIONAL BANKS SUCCEEDED BY OTHER NATIONAL BANKS
First National Bank of
AkWyiff inn 0
(Sucoeeded by The First National Bank J n Amboy)
First National Bank of
Deer Creek, Minn<v
(Sucoeeded by First National Banit In Deer Creek)
Jackson National Bank of
Jackson, Mian*
(Succeeded by The Jackson National Bank in Jackson)
Amerioan National Bank of
Little Falls d Minn.
(Sucoeeded by The American National Bank in Little Falls)
Northfield National Bank
Northfield, Minn.
(Succeeded by Northfield National Bank & Trust Co.,Northfield)
First National Bank of Winnebago City Winnebago, Minn.
(Sucoeeded by First National Bank of Winnebago, Winnebago)
First National Bank of
Cooperstosm, No Do
(Succeeded by The First National Bank in Cooperstoam)
Merchants National Bank
Fargo, No D o
(Succeeded by The Merchants National Bank & Trust Co.of Fargo)
Citizens National Bank
Jamestown No D o
{Succeeded by The National Bank & Trust Co0 of Jamestown)
Farmers & Merchants National Bank
Jamestown, No D o
(Succeeded by The National Bank & Trust Co0 of Jamestown)
First & Security National Bank ,
Valley City, No D o
(Succeeded by The National Bank of Valley City)
First National Bank of
Arlington,So D.
(Succeeded by First National Bank in Arlington)
Farmers National Bank of
Fairfax, S. D
o
(Sucoeeded by The Farmers National Bank of Fairfax)
First National Bank of
Mt. Vernon, So Do
(Sucoeeded by The First Natioaal Bank in M t e Vernon
First National Bank
Vermilion, So Do
(Suooeeded by The First National Bank & Trust Co® of Vermilion)
Vermilion National Bank
Vermilion, So Do
(Succeeded by The First National Bank & Trust Co0of Vermilion)
NATIONAL BANKS LIQUIDATED DUE TO INSOLVENCY
First National Bank
jSrskine, Minn.
First k Moorhead National Bank
Moorhead, Minn0
First National Bank
Denton, Monto
First National Bank
Aneta, N. Do
Cass County National Bank
Casselton, N. Do
First National Bank
Drayton, N0 Do
First National Bank in
Langdon, N0 Do
Larimore, N Do
o
National Bank of Larimore
First National Bank
McHemy* N, D 0
First National Bank
Sanborn* N Do
o
NATIONAL BANKS VOLUNTARILY LIQUIDATED
First National Bank
Pompeys Pillar, Monto
Milnor National Bank
Milnor, N. Do

1800
2400
150

33

45
21
5T
75
120
45
69
120
45
40
75
39
33
42
90
42

18
120
15
22
36
36
36
18
18
25
18
24

STATE MEMBER BANKS ABSORBED BY NONMEMBER STATE INSTITUTIONS
State Savings Bank ‘
Laurium, Miok0
135
(Absorbed by Merchants & Miners Bank? Calumet)
Security Bank & TrusJ Co.
j
Red Wing, Minnc
150
(Absorbed by new corporation under title "Security Bank & Trust Co0)
STATE MEMBER BANK WITHDRAWALS
Gwinn State Savings Bank
Gwinn,“
Mich0
First State Bank
Wolf Point, Monto
Farmers State Bank
Fullerton, K. D*




30
29

16

81

60
M EM BER B A M S

Date
12*14-29
1Q~31°29
12=26~29
12«14°25
10»19«29
12» 7-29
11-14^29
10® 14-29
11° 2-29
9«28~29
10”
ll-29
12^27<=29

TH AT H A V E

”

S T « :; SM XBRBD

AS

YET

BEEN

ABSO RBED

BY

S ? 6cK

1^

T S E IR

O TH ER B A N K S
'

A N D W H IC H H A V E

J J SKRAI . R E S E R V E

NOT

BANK

Name of Bank
Lo oat ion
First Rational Bank
Campbell, Minn0
(Taken over by First National Bank, Breokenridge, Minn.)
First National Bank
Farwell, Minn0
(Absorbed by Fanrell State Bank, Farwell)
First National Bank
Lanesboro, Minn©
(Taken over by Scanlan-Habberstad Bank & Truet Co.,Lanesboro)
First National Bank of
Litchfield, Minnc
(Sucoeeded by First National Bank in Litchfield)
Transportation Brotherhoods National Bank
Minneapolis, Minn
(Taken over by Marquette Nat?l Bank & Marquette Trust Coe,
Minneapolis)
Pipestone National Bank
Pipestone, Minn0
(Succeeded by The Pipestone National Bank, Pipestone)
First National Bank
Sauk Center, Minn0
(Absorbed by Merchants National Bank, Sauk Center)
National Park Bank of
Livingston, llonto
(Succeeded by National Park Bank in Livingston)
Hillsboro National Bank
Hillsboro, N. Do
(Consolidated with First National Banke Hillsboro)
First National Bank
Montpelier, No D o
(Absorbed by Montpelier State Bank0 Montpelier)
First National Bank
Omemee, No D o
(Absorbed by Merchants National Bank, Willow Cityp No D 0)
Farmers & Merchants National Bank of
Milbank, S. D o
(Succeeded by The Farmers h Merchants Nat9l Bank in Milbaak)

CLOSED MEMBER BANKS THAT HAVE NOT AS IET SURRENDERED THEIR STOCK IN THE
FEDERAL RBSERVfe BANK
~

11»30»29
7-12«29
6=>25^29
12 10^29
8“ 28
29“

Swift County Bank
First State Bank
First National Bank
First National Bank
Lake County National Bank




Benson, Minn.
Spring Valley, Minn,
Mayville, N. Dc
Tower City, N. D©
Madison, S* Do

82

FEDERAL RESERVE,NOTES

Important change& occurred in our issues of Federal ho
serve Notes during the past yearc Changing to the email si2e notes
had been contemplated for a number of years, with the i;otual re
placement commenced in July 19290

Between the first of July and the

close of the year, the Agent issued to the Bank $37,652^000 of the
small size notes*

Practically all of the amount represented replace­

ments, as the increase in circulation for the entire year over 1928
was only #1, 600,000c

It had been assumed that more of our own notes

would be required, than the amount of our outstanding, to make up
any shortage in the supply of other kinds of moneyo
Our own notes have not been sent in for redemption as rapid­
ly as we expected

Instead of 80 per cent of the old issue being

retired by the close of the year as had been estimated, only 50
per cent of the total outstanding was represented by the new small
size noteso

Besides the payments of Federal Reserve Notes, we have

paid out #8,365,000 in silver certificates* $4,795,000 in legale, and
#4,720^000 in gold certificates, making a total of $55,533,000,. in
new small size notes issued up to the close of 1929*

As the old

size National Bank notes are charged against the Redemption Accounts
of the various National Banks at Washington, replacements are shipned
direct to these banksc

We do not know what amount of the small

National Bank Notes have been shirped direct because replacements of
the National Bank Notes did not begin at the same time as other classes
of money«
On December 31, 1939 the Agent held .$50,313,000 of our
Federal Reserve Notes and of this total £42,300*000 consisted of the
various denominations of the new notes*

At Washington completed

notes to the amount of $16,300^000 are being held making a total of
$58,600,000 in notes available on which the printing costs have been
paid,.

Old series notes outstanding at the end of 1939 amounted to




83

FEDERAL RESERVE NOTES

#36,367,570.

(C o n t d )

During the past two years ne* note© of the old •fiiina

to the amount of #45,000,OOO have been issued and a# a

part

of these bills are no doubt in good condition, redemptions during,
1930 may be slower than expectedo

Printing orders which had been

given the Bureau of Engraving by the Federal Reserve Board up to the
close of the year called for the preparation of $33,400,000 in our
notee.

When printed we will have sufficient notes to take care of

our requirement® for at least a year and a half after the replacements
of the old series notes have been completedc

The method of ordering

notes is to estimate our needs over one year in advance of the Fiscal
*ear in which the printing is done-o

Our order for the Fiscal Year

beginning July 1, 1S30, was placed at #49,000,000.

As thi» is the

aggregate of the maximum amounts of the various denominations used
during the past four years it is evident that unless an unusual de<~
mand for currency develops, our printing order for notes should be re
duced,

In any event, the heavier note charges now being paid will be

reflected in a lower total current expense in 19310

We also hope to

see a reduction in shipping costs through the lessened amount of
postage needed on thr small eiz** noteso
It will be noted in the following tables that the unusually
large amount of $17,375,000 in notes was withdrawn from the Agent, in
October and that a similar large amount was destroyed at Washington,.
This resulted from our having to store up notes during July, August
and September on account of the congestion at the Treasury Department,
with instructions to send in the notes for redemption not being re
oeived until October.




irBDlRAL RESERVE HOTSB BSOBIYSD AM? ISSUED BT AGENT DOSING

1929

IN HASPS OF AOEKT DECEMBER 31. 1936

i

$ 3,880,000
3.720.000
4.400.000
150.000
310.000
479.000
800.000

Fives
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands

700.000
310.000
757,000
1.163,060

#15,529,000

RETURNED BY
BA.HK '
mcigrapr
j|09B7oo5
6.745.000
6.065.000
35.000
10.000
56.000
78.000

RECEIVED FROM
COMPTROLLER
------ SEW — ~
#2098307000
37.120.000
36.330.000
1,800,000
3 0600,000
800,000
800,000

TOTAL
REOEIVED
$35,118,000
33.865.000
42.385.000
1.835.000
31510.000
853.000
878.000
$108,537,000

117,377,000

ISSUED TO BANK
lOE?? ---------T H - F Q B O S S
i ism-ms—
#14,9*07000
is;120.000
7.645.000
6.465.000
17.930;000
975,000
'335,000
3,360.000
10,000
50,000
56,000
___ 100,000

Fives
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands

__________ 2

Total - - $54 ,,465,000

9

9

. 0

0

,
irOTAl)m
35.765.000

34,385*000
1.300.000
3.370.000
108.000
390.000

0

$19,289,000

73.754.000

IS BAUDS OF ASEHT DECEMBER 31 ;.1
3i.t 1939
THIfSgJggg
TOTAL
0 9,7607000
$ 9,7®O50
11,730,000
11.720.000
22;800,000
22.800.000
975;000
1.325.000
350.000
1 ?550,000
1.550.000
1.507.000
1,339.000
378.000
1.650.000
1.5001000
150.000

Fives
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands
Total




900.000
400.000
550.000

#3,790,000

Total - - #91,360,000

Fives
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands

300,656

278.000
363»000

Total ■ ® $13^739)000
*

Fives
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands

TOTAL
# 4,1537000
3p630,000
4,800,000

FIT-FOHUgg

I

$49,534,000

1929,
w?s$
34,8
33.1
1*6
3*2
•2
*5

100 M

:o

of

isst

So *1$
35.7
30,9
1*6
3a
«3
.3
100,0$

778,000

$ 50 ?312,000

BY DENOMINATIONS 1933
192^
n a r - ”TSSBT '
39.9’
$
2S7J*
36.6#
37 05
29.1
27.3
33 ^3
33,3
30e9
2.4
1.2
4,7
2,4
3.6
4.7
,2
.1
*8
a
*6
lc7

100*0$

100.0$

100.04

1929
m i
3i

37a

29 a3
3*3
5o5
1A
1,5

1923
W'M>
31.9

33.8

2 01
3«2
»3

*8

100. Ojl 100.04

FEDERAL RESERVE NOTES ISSUED TO BANE
COMPARATIVE BY MONTHS 1 9 2 6 - 1 9 2 9 .
1926

^uary
February
March
April
Hey
June
July
August
September
October
November
December
Total for
Year

1927

1929

192

905,000.
2 ,1 7 0 ,0 0 0 .
3 ,4 3 5 ,0 0 0 .
5 i 300.000.
1 ,5 9 0 ,0 0 0 .
3 ,1 4 5 ,0 0 0 .
5 ,7 3 5 ,0 0 0 .
1 ,0 3 5 ,0 0 0 .
5 ,3 6 1 .5 0 0 .
4 ,3 9 0 .0 0 0 .
5 '3 4 0 ,0 0 0 .
4 .3 3 5 .5 0 0 .

$ 1,4 9 0 ,0 0 0 .

1 ,41 0 ,0 0 0 .
3 ,2 2 0 ,0 0 0 .
3 ,7 0 4 ,0 0 0 .
1 ,1 7 0 ,0 0 0 .
2 ,8 3 5 .5 0 0 .
4,9 50',000,
l s2 1 5 , 0 0 0 .
4 .8 0 0 ,0 0 0 .
5 ,7 1 5 ,0 0 0 .
3 ,3 3 0 ,0 0 0 .
3 .8 2 5 0 0 0 .

630,000.
2 ,3 0 0 ,0 0 0 .
2 ,4 9 5 ,0 0 0 .
3 ^7 0 5 , 0 0 0 .
2,8 5 0 ,0 0 0 .
3 ,855,0001 ,9 8 5 ,0 0 0 .
3 ,4 8 0 ,0 0 0 .
4 ,7 3 5 ,0 0 0 .
6,63 0 ,0 0 0 .
5,71 0 ,0 0 0 .
3 630,000.

$ 3 ,5 4 0 ,0 0 0 .
2 ,3 1 0 ,0 0 0 .
5 ,8 3 5 ,0 0 0 .
2,2 3 0 ,0 0 0 .
3,7 8 0 ,0 0 0 .
1,5 3 0 ,0 0 0 .
8,1 3 5 ,0 0 0 .
9.41 0 ,0 0 0 .
8 . 7 7 5 OOO.
1 7 ,2 7 5 j0 0 0 .
4 , 3 3 9 .,000.
7.2 1 5 ,0 0 0 .

143,703.0 00.

♦36,6 94,500.

# 40,015,000,

$73 7 5 4 , 0 0 0 .

$

t

FEDERAL RESERVE BOTES DESTROYED AT
WASHINGTON
COMPARATIVE BY M0STH8 1 9 3 3 - 1 9 2 9 .

January
February
March
April
Kay
June
July
August
September
October
November
December
Total for
Year




1923

192 7

19 3 3

$2,849,400.

$3,061,900.
2 ,2 6 3 ,3 0 0 .
3 ,0 0 5 ,2 0 0 .
3 ,8 3 1 ’ 100.
3 ,1 7 7 ,6 0 0 .
3 ,9 3 7 ,3 0 0 .
2 ,7 0 3 .3 0 0 .
3 .4 9 9 ,3 0 0 ,
3 ,8 3 6 .1 0 0 .
3 ,9 3 7 ;0 0 0 .

2 ,2 8 3 ,3 0 0 .
3 j 197,885.
1 , 9 9 0 , S50.
1 ,9 2 7 ,3 0 0 .
1 ,8 2 9 ,0 5 0 .
1 ,4 6 5 ,1 5 0 .
1 ,9 6 0 .5 0 0 .
1,792*850.

1,442,000.

2,033,700.
3 .5 2 4 ,7 5 0 .

2 ,5 8 0 ,2 5 0 .
1,652., 000.

$31 835,950•

|23,970,335.

$2 ,605,300.
2 ,3 7 3 ,1 0 0 .
1 .3 1 1 .3 5 0 .
2 ,3 9 0 ,3 5 5 .
2 ,13 3 ,3 0 0 .
2 ,4 4 7 ,8 0 0 .
3,595,5 50'
3 .0 5 3 ,8 0 0 .
1 ,8 6 8 ,0 5 0 .
3 ,0 3 4 ,2 0 0 .
2 ,8 6 2 ’880.

19 3 9
I 3,43 5 ,3 0 0 .
2 037,350.
2^421,850.
1 .9 7 4 ,2 5 0 .
3 ,9 2 9 ,2 5 0 .
1 ,1 8 9 ,0 0 0 .
3,2 5 1 ,2 5 0 .
5,7 3 3 ,0 5 0 .
4 ,5 1 2 ,7 5 0 .
17,559,'900,

5,354,700.

1,803.050.

4 „6 8 S , 0 0 0 .

§26,808,035.

$55,134,950.

FEDERAL RESERVE NOTES ISSUED AND
DESTROYED 8IN0E ORGANIZATION
Issued
To Bank
1914
1915
1916
1917
1913
1919
1920
1921
1922
1923
1934
1925
1923
1927
1928
1929
Total

Destroyed
at Washington

$

260,000.
$<
t
13,742,000,
0
9,880,000.
895 955,
42,330,000.
8,9881095.
57,140,000.
9 421,540,
39,990,000.
36,771,805.
39,450,000*
40,788.785.
39,265,000.
49'749)580.
43,360,000,
32,784;330*
40,205,000.
27,320,330.
52;030,000.
28,173,395.
44,330,500.
30,108.355.
46,702,000.
31,835,950.
36,694,500.
23,970.335.
40.015,000.
25,808;035>
73 754?Q00«________ 55?134;950.
#3157848 000.
p 6 i 7§ 430
§

88

I8SD1, M IS S U S AID DSSTBOCTIOI Of TW
SR1L H BSOTZ lOtSS SIBCJ
O H B U M or B A H AS or CTOmagj 31. 1929,

Becelved from
Controller

B«turned By Bank
tpigont----

Vlvet
$ 164,400,000
fens
166,760,000
Twenties
166,000,000
fifties
9,200,000
Hundreds
14,400,000
five Hundreds
2,600,000
Thousand.
3,600,000
Total . . . $ 626,960,000

$ 38,000,000
60,000,000
60,500,000
4,100,000
5,700,000
1,100,000
3,000,000
$ 142,400,000

n

y

L

Mil
$ 192,400,000
216,760,000
216,500,000
13,300,000
20,100,000
3,700,000
6,600,000
$ 669,360,000

M

tttdteJBHt
Fives

Tens

Twenties

fifties

Hundreds
FIt s Hundreds
thousands

$ 154,640,000
155 e0400000

$

1430 200,000
8r225, 000

12C
850,000

,371.000

Total o . $ 477,436,000

$

Total

28,000*000
50,000,000
50,500,000
3.750.000
5.700.000
822,000
2n850n000
141,622,000

$ 182,640,000
205.040.000
193.700.000
11*375,000
18,550,000

2,193*000
QQQ

$ 619,048,000

b b b h e i l j l i i baasa

Beturned
By iasnt
Fives
fens
Twenties
Fifties
Hundreds
Five BondredS
Thousands

4„260,, 000
2.545.000

1.020.000

25.000
30.000
none
________ !___
Total 0 0 | 7,880,000

Beturned by Beturned by
MimeagoUs
Treasurer
$ 3,851,870 i 70,103,500
63,060,000
4,393,930
47s153,500
2,601,560
215,250
3.209.000
295,600
4.609.000
44,000
394.000
714.000
_____ 75.000
til.477,210 $189,243,000
In hands of
Agent
Peaember 31. 1929

Fives
Tens
Twenties
Fifties
Hundreds
Five Hundreds
Thousands
Total , . . . . . . . .




$ 9,760,000
11,720,000
22*800,000
1 0325,000
1,550,000
1,507,000
_ L.ef&uQQg.
_
$ 50,312,000

Returned by
Other FqBJfrs^
61,520,580
63,065,940
62,649,900
2,617,400
3,668,900
242,500
363,000
$ 194,128,220

2SU&.
$ 139,735,950
133,064,870
113,424,960
6,066,650
8,603,500
680,500
-_ 1*152*300,
_
t 402,728,430

Outstanding
December 31. 1929
$ 14,904,050
21,975,130
29,775,040
1,808,350
4,246,500
412,500
. 798.Q0Q .
$ 73,919,5"0

87

F I S C A L A G E N C Y FU N C T IO N S

- 1939

Issues, redemptions or exchanges of various United States
Government securities

including Treasury Savings certificates redeemed

at this office^ which were handled by the Fiscal Agency operated by us
for the United States Government, numbered 58,036 pieces and amounted to
$133^941,7960 35 as compared with 334,045 pieces amounting to $149,551,318o35
in 19380
The decrease in these figures is largely accounted for by the
fact that there was no large redemption of maturing securities during
1939 such as occurred in the preceding year when the Third Liberty Loan
Bonds became due and of which 148*317 pieces amounting to $37,580,300o00
were received either in exchange fox other issues or for payments
This Agency handled during 1939? 4,005 orders for the purchase
of Government securities and 8 3686 resales of Government securities totalo
ing $93^8Sl»130o00c

In addition* either delivery or payment, or both9 »as

handled for banks and trust companies on 735 transactions in Government
securities amounting to #55 881,900o00o

There were also 363 transactions

of miscellaneous general market securities aggregating §l,483,S00o00.

Al«

together, of these various transactions there were 13,788 totaling
#150,236,330.00 as compared with 13,713 totaling $138,917,871,00 in 1938,
Delivery of 34,676 pieces totaling #91,413,800c00 was made on
purchase and resale transactions f f r other than our own accounts,
tc

In addi

tio»n9 on exchange transactions*, such as denominational exchange* the ex *
change of coupon for registered securities* atc0, 40,138 pieces were d e ­
livered amounting to $38,6I0yXOOoOOo

The total number of pieces deliver-?

ed was 74,814 amounting to $130*033,9000 00* in comparison with 74,570
pieces totaling $139.. 793,663o00 during the preceding year,
This Agency handled subscriptionsp allotments, payments and se«
ourity deliveries in this district on four offerings of United States
Treasury Certificates of Indebtedness during 1939o

In such operations,

3,427 individual subscriptions contained in 1,495 different applications
were

received*,

The amount allotted on these subscriptions was $31,074,5 0 0 .

In J uly,
its willi n g n e s s
1930

to

the

Treasury

purchase

the

Department
3j per

made

cent

public

Treasury

33 d i r e c t f r o m i n d i v i d u a l h o l d e r s at a p r i c e of




announcement
notes

of

of

Series A

98 and accrued ■'in-

yiSOAt AQEHOIf rOHOIIOIIS
sreet.

(Oontd)

In accordance with the term* of this announcement, |5 puwhftte*

amounting to $59l,400o00 were made for the Government®
The September offering of Treasury oertifioate# was the first
offering with the new tax exemption provision to the effect that the cer­
tificates would be fully exempt, both as to principal and. interest, from
all taxation, except estate and inheritance taxes*,

Heretofore the interest

on such certificates had been exempt from the normal income tax but from
surtaxes only to a limited extent®

In addition to the cash subscriptions

to this offering, 33 applications submitting $l,069,000o00 of the 3^ per
cent Treasury notes maturing in 1933 and callable in 1930 were accepted
in payment of the new certificates at a price of $98« for each $100o face
amount of the certificate®
During the latter part of November, the Treasury Department announced its intention of issuing a new form of Government security0

This

was the Treasury bill, sold on a discount basis to the highest bidders
and payable at maturity without interest9 For the initial offering of
these bills on December 10, with a 90 day maturity, 33 tenders for $510,000
were received by this Agencyc

Bids ranged from 990319D equivalent to an

interest rate of 3 1/8 per cent, to 98o75, or a rate of 5 per cento

Of

these, two bids totaling $75,000* at 99o3l9 were accepted.*
Including the weekly circular giving current market quotations on
the various outstanding government issues, 74 circular letters were sent
to all banks and trust companies in the district during 1939 in connection
with fiscal agency operations*
At the close of the yearp there were 195 banks and trust companies
in this district which were designated as special depositaries of public
moneysL thereby being qualified to make payment through their War Loan De­
posit Accounts on a by credit basis for subscriptions to new offerings of
Government securities, with the exception of Treasury bills,

The number

of banks so designated was the same as the number designated at the close
of the preceding year, although there were in reality a number of changes
during 1939 in the name of the banks on the lieto
The Fiscal Agency operated by us for the Government, redeemed
585,375 Government and Federal Land Bank coupons amounting to $10,546,339095
during 1939 as compared with 809,698 coupons amounting to $10,138.000C0O
during 1938,




GENERAL SERVICE

In order that the costs of general service operations as shown
on a following page may be better understood, a brief explanation of the
operations of various units listed under this function i« given here*,
ASMIK1S TftAT1OH

This unit includes salaries of officers assigned to the

administrations of operations conducted for the general service of the banko
PURCHASING Alap STOCK HOOia

Purchases all supplies^ printed matter and fur­

niture and equipment*, and maintains purchase records.

Receives supplies,

checks invoices and maintains inventory of stock on hand.
plies on requisition.,

Distributes sup~*

And all other work incident to the purchase and main­

tenance of a stock of office and other supplies,printing, stationery9 etc0
All orders are referred to the Controller for his approval before
they are put througho

By this method he has the opportunity of investi­

gating the necessity and advisability of making the purchase before any
expense is incurredo

Ho part of the Controller9s salaryy however, is

charged to this unite
TELEPHONE

Includes the operation of private branch exchange9 including

the rental of equipmentf repairs and repair parte to internal house tele­
phone system, local and toll chargeso
use of expenditures unito

Maintains record of toll calls for

The cost of toll calls is redistributed to the

units affected

TELEGRAPH

Transmits and receives all telegrams over leased wire*

tains daily wire log.

Delivery of telegrams to departments^

eludes the cost of leased wire rental and commercial messageSo

main­

Also in*
All tele«

graph expense is redistributed to the units affected*
MAIL

Receives, opens and sorts all ordinary mail*

tributee all such mail?
nary mailo

Time stamps and dis­

Collects* assembles and encloses outgoing ordi­

Stamps and seals outgoing ordinary mail*

KSGISTZRBD JAIL

SXPKESS

Receives registered mail from post office^

receives express shipments except coiiio

Opens, sortaf and verifies all
i

mdecellaneous registered mail and express, except currency and coin*, (Cur­
rency shipments are delivered to receiving teller unopened)„
and secures receiot for same*

Distributes

Verifies and prepares shipments of outgoing

registered mail and express* except shipments of fiscal agency securities*
currency and coin0 Effects insurance where necessarye
ments to post office or express company,,



Delivers ship­

GENERAL SERVICE

£-jPLIvATI^J

Includes

g-uarding of
streets

ditto

and

Includes all work

Pk Q T S O TIQN

of

the property

banko

general duties are to direct

a force

assigned

pages, office

of

operating

to a n

AUTOMOBILE

S&UXPyE&T RSPAIRS

VAULT

the

the various

calculating

on

when

work incident

maintenance

to the

inside messengers

not

definitely

banko

units

in

the

banko

machines*

adding machines

money counting machines

furniture and equipment*

Includes all work incident to the general control

other vault equipment,

FILSS AND OLD RECORDS
vicet* telegrams
and

and care

inspections,

old

recordso
with

doors

alarm systems, etc*

Bind

Destruction of old record©^ and all

incident

filing

department

to

to the maintenance and opera­

dictaphone operators* typists*

central stenographic staffo




to vault

records®

stenographers,

redistributed

of repairs

maintaining a central

Includes all work

STEIICuruPEilC

includes coat

Collects9 sorts and files correspondence„ ad

in connection

<jf o l d

to a

also

debit aud credit tickets* cash letters, etc
of

custody

other work

signed

all

u n i t of

and maintenance of vaults j

of

while

to the proper departments*

people

boysj, o r

and all other movable office

tion

alarm services except

Repairs and maintains typewriters

duplicating machines9

in*

messengers

safe

Includes all work i n d e n t to the mintenance and ooera

tion of trucks usee by

or

of

and

Includes salaries of floormen whose

Includes

OFFICE BOYS AND PAGES

Guarding

and b u r glar

similar character,

to the protection

incident

the

Outside protection

machines of

other

exclusively for vault protection

of

mimeograph, multigraph, ad-

the o p e r a t i o n of

dressograph, photostat,,

(G o n t d )

All

and

others as­

stenographic costs

are

the units affected on basis of time used

91

GENERAL SERVICE

ADMINISTRATION
No0 of Offioere
& Employees
▼?ar 1929
Year 1928

lo20
lo20

Monthly Average
Year 1929
Year 1928

$

lo70
lo74

Monthly Average
Year 1929
Year 1928

|149809.15
14,113o27

3o00
2o84

Expense
| 4,583«69
3 0986o83
|

AUTOMOBILE
Number of
Employees
lo09
loOO

Monthly Average
Year 1929
Year 1928

Monthly Average
Year 1929
Year 1928

$ 3,161o81
3,002006
|

MAIL
Number of
Employees
8 o05
7 092

Expense
$ 2,704o27
2,419 o56
$

4 o00
4o81

PROTECTION
Ifomber of
Employees
17o07
15o90

458073
544o08

Expense

2o08
2ol2

Expense

$26,643074
24,818*50

Expense

$ 9,091*79*
9,486005*’
|
1

757065
790 o50

REGISTERED MAIL-EXPR
Number 6t
Employees Expense
2*04
2 o06

681098
653o07

|3,311082
3,151036
#

275o98
262o61

OFFICE BOYS & PAGES
Number of
Employees Expense
5o55
5.22

|3,834048
3,158o38
|

319o54
263o20

EQUIPMENT REPAIRS
VAULT MAINTENANCE
Number Gf
taaber o£
Expense
Employees
Expense Employees
2 ©10
2ol0

| 6p060o37
5,523*52
|

2*10
2o38

|3p262ol4
30340ol4
$

505*03
460o29

STENOGRAPHIC
Number of
Employees
9 014
9o81

!.

* Toll Charges distributed to various expense units ilD5350
46
% Toll Charges distributed to various expense units 2 0326o08




Number of
Employees

$ 2,220o31
2,068*21

225o36
201©62

| 5 c504o79
6,528o96
$

$

TELEPHONE

263 o48
250 ol7

$ 8,183.78
7,836*85

381o97
332024

FILES ASP OLD RECORDS
Ifumber of
Employees
Expense
Year 1929
Year 1928

1 o04
loOl

$ 1,234 olO
1,176010

Monthly Average
Tear 1929
Year 1928

Year 1929
Year 1928

Expense

475o75
436o46

Expense

DUPLICATING
Number of
Employees
Year 1929
Year 1928

Number of
Expense Employees

# 5,709002
5 p237o48

TELEGRAPH
Humber of
Employees
Year 1929
Year 1928

PURCHASING & STOCKROOM

Expense

1 15,679 017
16,330 d 2

t

/1,306o60
1 p360o84

271o84
278©34

FSDSRAL RESERVE CLUB
The activities of the Federal Reserve Club have continued
along the same lines as those of previous years and the interest of
the employees has been maintained with equal enthusiasm

The member­

ship at present is practically 100$o
The educational features of the past year have included the
privilege of attending the various courses provided by the American In­
stitute of Banking in their night classes, as well as classes at the
University of Minnesota Extension Division*

Partial refund of the

class tuition feees not to exceed iSoOC^ is made to club members upon
completion of the subject if proper credit is received*

The sum of

|300o has been set aside for refunds in 1S30.
The Federal Reserve Club Savings Fund is proving to be most
successful and of great value in fostering the thrift habit in our
members.

At the present time there are 103 subscribers to the *und

who contribute approximately #725c00 per pay dayf or a total of #1*450.
monthly*

While the number of subscribers is less than a year ago at

this timep due to a reduction in employees, the amount of the monthly
subscriptions has increased 34$c After functioning 15 months the
Savings Fund holds $ll9350o in United States Government Bonds to secure
111^472030 of member&s deposits«

We cannot help but feel that our fa*th

in this undertaking has been more than justifiedc
The athletic activities of the club include a variety of sports
and club members seeking recreation in that direction have a wide choice0
Golf continues to be exceptionally popular and both the handicap match
and the blind bogey tournament receive enthusiastic support0
The Club this year purchased a piano for the recreation rooi
thus adding a permanent fixture to the furnishings^ and an excellent radio
was also purchased which accomodates a large number of employees during
baseball and football seasons, besides furnishing music during the lunch
hour in the cafeteria«




FEDERAL RESERVE CLUB

(Contd)

That the spirit of charity still prevails in our membership
is indicated by their generous gifts of time and money to make the
Christmas Doll and Toy display as attractive as previous yearso

The

dolls are purchased by the Club and dressed by the girls of the bank
and wives of men employees9 while the toys are purchased with funds
donated by the officers and employees*,

After our Christmas party these

articles are turned over to the Family Welfare Association for distri<~
bution to the poor children of the Gityc
The social gatherings held during the year have all been well
attended and these functions help to establish a feeling of harmony and
goodfellowahip throughout the membership*,

J

The budget covering Club activities is classified as followss




Athletics
$ 525o00
Welfare
175.00
House Committee
1,875*00
Educational Refunds
375■00
Girls Activities
3?5«00
Contingencies
300o00
#3y435o00
Less Dues
To be provided by bank

500 00
$3>935,00

91

w s lfar^ cafetseia

The constant reduction in our Staff has helped bring about
less services from the Welfare Secretary during 1929U We are also try­
ing to teach our employees methods of preventing disease and we think
this has resulted in lees illness^,

Employees who are absent a day or

two are visited by the Welfare Secretary indicating the bankas interest
and bringing us into touch with the employee^ family0

By cooperation

with the Federal Reserve Club this department is able to assist in pro
moting good fellowship throughout the institution-.
A comparison of the services rendered and the expense incurred
is presented in the following tables
Office Service To
Year
House Calle
Telephone Calls
Male
Female
_____________________________________ Employees
Employees_______________
1929
1928

34
31

115
122

1929
Salaries
$ 1,800.00
Medical Supplies
83^03
Office Supplies
149c95
All Other
33*80
9 2,065.78

588
752

500
700
1928
$ l,584a72
10?olS
3So10
173*35
F l , 90172^

During 1929 we were unable to comply with the Federal Reserve
Board°s instructions to absorb only one-third or less of the cafeteria
costep absorbing #373.,34 more than the allowed one*~third0 Costs of serv
ing food in 1929 were #7,885011 as compared to $7,175034 In 1328„ an in­
crease of #709o87 in spite of a decrease in sales of $o60«37 in 1929 from
1928o

Sales in 1929 were $11,173 =04 and in 1928 were *11,7330410

Costs

of food in 1929 were J9,291»81 a decrease of $l0255o43 from 1928 with
$10,547o240 An effort is being made to lower the expense rather than to
increase the cost of food.

We believe that a solution may be reached

through changing the way in which our service supplies are handled, as
well as the character c*f these supplies**




COMPARATIVE CAFETERIA EXPENSE
8alaries-Manager
$ 600*00
Salaries Cooks-Waitresees 5,2S3o50
Service Supplies
1,652022
Glass,China,furnishings
189<,54
Fuel
172ol5
Qoet of Food
9,291a81
Miscellaneous
_______ lo70
Il7,l?So92"
Leas receipts
Set defioit

11,173«04
#I,dd3.TB3

1928
37o50
5,291o80
l s583o08
90c25
165*99
10,547,34
_
_
3c S3
#17,T32u4B

$

11.733041

95

tiZ L Z M

B h A M l}

The net results at our Branch for 1339 were better than for nny
other year since 1934

Current earningn and eroer.see both showed im

provement,although based on the income and expanse which may be allocat
ed to Helena there was a deficit of $44,818 66-

Our Branch is operated

at a lower expense than any other full power branch In the System..
w&a also determined some time ago that all Branches must add

to

It

the

expense cf operation and that the economic necessity for a Branch is
the real consideration, matters of income and expense being- secondary
Earnings of the Helena office it 1539 were $43,503 58 in com
pari son with $8,331 35 earned in 1938 . Rediscounts and collateral lean*
were heavier than during the previous four yeare

With 45 banks accommo­

dated Montana showed a greater percentage increase in member* served
than any other part of our District*
was 1 ?587 totaling $llp590,967-.

The total number of items handled

In 1938, 458 iteje amounting to

$3,467.1590SO were discounted for 35 member banks-

The volume of die

counting was heavier between day 15 and September 25 than at othe 1 times
during 1939o
The only other source of income at tialena it from deficient re­
serve penalties0

The jc increased from #1*980 05 in 1923 to #5,058 50 in

1939 with the same number of banks penalised in each year

During the

past year penalties charged 3 large banks more than accounted for the
increase ovei the previous year3
Expenses in 1939 were $87,131«54 and the lowest
one year since opening of the Branchc
year *ae $7,140 15*

total

f<’ any
»r

The reduction from the previous

Expenditures at Helena will be higher in 1930

with a total expense $5*000 or $6,000 greater than in 1929

Replace­

ments of adding machine** are also becoming necessary but the cost of
all furniture and equipment is entered on the books at Head Office
Salary payments during the past year were $2,000 lest than In 1320
Traveling expenses of $1,318 81 were $630 below
cf only
tions

examination

one

were

$3,308.18

made
in

during 1939.-




in t h e

1938

in

by

Head

Office being

previous year

previous year, the coe

the

in luded,

Repairs-

and

*nilrf

two examina­

Alterations

comparison with $517*90 charged

for

this

were

purpose

Supplier, printing and stationery cost 43,395 or $460 let*:

HELEMA BRANCH (Contd)
than in the previous year.

Postage

costs

were $1,660 less than in 1928

because of a larger carry over from the year previous*
Transit volume was lower in 1929 with 2,504,000 items for
$470^511,000 handled in comparison with 2.550,000 items for 1477,130,000
handled in 19280

Non-cash country collections decreased from 13,279

in number and $6V367,000 in amount during 1928 to 12,896 itemu amounting
to £5,301,000 during the past yearc

City collections numbered 3,596 in

1329 with a little over $1,000,000 in amount handled each year3
S e c u r i t i e s held for safekeeping and other purposes at Helena

amounted to $5,742,000 par value on December 31, 19399 a gain of $233,000
for the yearc The major portion of the securities at Helena represent
.
collateral securing soecial deposits*

At the time of our last examina

tion of the Branch in September., Minneapolis Custodies Department was
also holding $6P343,000 of securities for account of Montana member hanks
Transactions over the wire for members were considerably in­
creased in comparison with 19283
and totalled ^119,536,000*
aggregated $47,lS8,000o

Incoming wire transfers numbered 3^436

Outgoing transfer*? were 1,983 in number and

Incoming wire transfer*; in 1928 were 108 less

in number and 113,140,000 lees in amountQ

Outgoing transfers were 366

less in number and #13,784,000 less in amount during 1938o
The Branch received and counted more currency and coin during
the. past 12 months than in 1928

The amount of currency received *as

$>15., 653,000 or $1,710,000 more than in the previous yearc
have no reference to money rehandled or paid outc
above $8,800,000 wae received from Head Officer.

These figures

In addition to the
Shipments and de

liveries by country and city member banks numbered 1^847 in 1929 and
1^550 in 1926,

Outgoing shipments were 2 270 in 1929 urd 2,310 in 1928

with $12,380^000 shinned during each year> The number of shipments
did not increase last July like at Minneapolis because the initial ship
ments of new small currency were all handled at. Head Office,

Coin ship

ments and deliveries during the past year numbered 1,039 for a total of
£630,000.,

In 1928 there were 1,305 shipments and deliveries amounting

to 1720,000




97

KSLS|t4

(dontd)

Member bank reserve balance* held at Helena on Decernbar ,11 f
1929 were # 7 *3 5 4 ,0?3c 39 0

The low point reached during the y e a r #ae on

December 36 when the deposits held were #5,737^000.

From January 15,

1939 ,the high point date,to the low marlc in December, deposits fell

nearly # 3 ,0 0 0 ,0 0 0 o

During 1938 deposits were highest on December 14

with 1 9 ,0 2 3 ,6 0 8 ,8 9 c
On September 18, 1939 an examination at Helena Branch was aade
by Head Office auditors, this being the only examination conducted dur
ing the year.

Conditions were found to be satisfactory at the Branch

with all operations efficiently handledc

m m v n

wimatt w m u b m
HSMML BBilOH
w*.

Average
lumber
Of
Officers

Total current expense
Totel reimbursable expenditures

Stock of supplies
QBASD TOTAL




Average
lumber
Of
Sqplovees Amount

Average
lumber
Of
Officers

Average
lumber
Of
IffilSBOM-

$ 8,634,09 1.00
1.09
6C37)5,28
o06
7Mo95
9044 13,348032
£,968.41
3,580,39
.04
401o66

.08
.04

2.05
o!8
9087

.04

.03

o03 1,120.69
.25
.08
.52 2^049a07
2.93 7,504.44
.26
.21
6,56 14,031*24
162
402l0o85
ol6
.10
3,72 14,189 o22
63,22
o02
1,200.00
o32
.09 l,562o93
31,95
359,62
150.49
28.12 187.350.27 2.82

o36
,47
2<75
>
8 38
a
1.70
3o84

$87a121.54

............... .
.. ■ , ,
,, ,
$87*350*27

Aaenl
$ 8.579,91
4,985,65

4,813.55

C
O
0O
2

Oen0
1oOverhead-Controllable 1 000
Oen °cOverhead Ion-Controllable
l
Provision of Space (less in­
come from banking house)
AO
Provision of Personnel
.05
General Service
31
Postage
Insurance
Failed Banks
o05
Loans* rediscount* and
acceptances
.16
Securities
015
Currency and Coin
20
Check Collection
016
Ion-Cash Collection
014
Accounting
.2 2
Fiscal Agency-All Other
Legal
Auditing
26
Bank relations
Bank examinations
Statistical and Analytical
GRAID TOTAL
2, 80

m t

40

«35

30.08

8,962.82
788,44
18.837.81
4,479,07
3,496,28
320,68
2,256,14
1,665,53
7,106,47
14,105,14
3,558,28
14,367,37
201.28
1,800,00
3,139,56
101.65
301,50
89,27
1 94,142:85
$ 94,261.69

- - .... ....
$ 94/3,42.85