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OOKTROLLSR'S REPORT
fKQERAl, .-vEsFr./X BANK OF MIHKEAPOLIS
FOR THE TEAR
19

3 1.

To the Directors:On the following pages of this report you will find
the details of our operations for the past year with reasons given
for the variations when compared with 1930 results
The total earnings and expenses both show improvement
over the amounts indicated at the Beginning 01 1931 with the r^et
deficit $134,349,67 from current operations

The fact that we

were required to lower Surolus #653,000 85 additional to care for
market depreciation an our holdings of Government bonds, is no
doubt due to a temporary condition and the amount will eventually
go back to Surplus0
There has been a reasonable reduction in operating costs
and the indications are that with present rates maintained we will
be able to cover our needs in 1932
All work of the Head Office and Branch has been performed
in a satisfactory manner and the true condition of our affairs m s
been reflected in the audits made through the year

The volume

and expense of each function with 1930 comparisons* is discussed
and explanations offered,-

Changes in personnel have been few with

Helena operating with 3 less employees than one year ago

Total

staff consists of 359 persons at Minneapolis and 29 at Helena, a
net increase of one person for 1931c
In addition to comments of Head Office Controller, a
separate report has been prepared by the Branch Managing Director,,
Hesoectfully submitted*

Controller

January l s 1933




Accounting
Comments ................. ................ ..... . . . . . . .
. 33 .33
Member bank balances ................. . . .................................. ..£i
Transfer and Coding Unit » . ................... ............ . ! . ! . ! . * 63-64
Administration Costs • . . . . ........... . . . . . .............. ................ „ 48
Audi ti ng
Comments . . . . . . . . ........... .............. ............. . .. ................ . , 34
Bank Examination Department ,

.......... ................................. 73 73

Bank Premises
Minneapoli s buildJng , . . , . , ......... ........»
0 35
Helena building a. . . . . . . .......... . .. ..................... .. . . . .
3s
Depreciation charge-offs and reserves
.......... 37
Costs, charge-offs and book-value 0. ............... c
> 38
Comments . . . . ...................................................
......... 39- 3
4Cafeteria a. . . . . . . . . . . . . . . ....................................................... .91
Check Collections - Transit Department o.. . . . . . . .

.

Closed Bank
Comment s 0. . . . . . . . .......... .......................................... . . .
Cost of function and number oi employees 1931-1930
Collateral
Comments

CD ’ 1
5

5 U 54
54

. .................................................. *,3

Collections
Non Cash
Comments . ................. ..................... ..................................... 72
Cost,number of employees and number of items handled. 73
Comparative statement number of items received for
collection 1931-1930 ». . . ......... ........... . ................... 73
Currency and Coin
Comments ............................................................ ..
. 55-53
Original cost,cost of redemption and shipping charges,43
Number of shipments received and sent . . . . . . . . . . . . . . . 56
Functional coats number of employees and volume of
work handled 1931=1930 „, . . . ........................................58
Amount of currency received from and shipped
to menber and non 'member banks .................................. 57
Coin shipments received and sent ................................ .. 56
C u s t o d ie s ........... ................................................. ..................... ..59
Deficient Reserve Penalties ................................................... ..31
Di scounts
Comments ................................................................... .
o 50
Cost of function, number of employees and volume
of work handled 1931 1930 ..................................... ....... 52
Rates ................................................................. . ...................12
Statement of operations ............................. . . . ................... 51
Statement of Bills Purchased ......................................... ...52




Dividende paid since organisation
Earning 8
Comparative statement 1931^1939 . . . . . . ............................. 11
Gross earning? and monthly averages .
12
Average rates on earning assets
................... .13
Comments ............................................................. ...................13 * 17
Expenseb
Comparative statement 1931-1939 . . ............... ...................
Comparative statement of Miscellaneous Expenses . . . . . .
Comments ... ............................ .... ............ .......................
Administration Costs General Overhead .............................
Comparative Statement by Functions-jUnne an oil? .........
Comparative Statement by Functione-Helena . . . . . . . . . . . .
Reimbursable Expenditures
Failed Banks

18
19
30-31
4Q
49
94
86

........................................... ... 55 54

federal Reserve Agentfs Functions
Number of employees and expenses of various units
79
...................................73-78
Bank Examinations
Federal he serve Notes . . . . . . . . . . . . . . ................................ ..80-84
Federal heserve Bank Employees* Credit Union

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

Federal Reserve Club

89-90
. 86

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

60-81
82-84

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

85-66

Franchise Tax naid since organization

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

6

Functional reports
Comparative cost of various funotions-Minneaoolis . . . . 49
Comparative cost of various functione-Helena o . . . . . . . . S4
Administration costs-General Overhead * . . ................. ..
48
(Functional reports will also be found under
department headings such as Currency, Dis­
counts, e t c )
Furn i tu r end I V . 1•?11
<
'
Comments e . . . . . . . . . . . . . . . . ................................................... 43-44
General Service Functions
Number of employees and cost of various units ..............,87
General Overhead

Administration Costs » .. . ..................... * 48

Gold Holdings
Reserve Position ............................ -........................ ............ 50
Amount held by bank and F j Ro Agent „ . ............................. 45
Government Coupons ..................................................*...............
Helena Branch
Comments ». * ................................................. ...................
Comparative functional expense report 1931—
1930
Bank Premises ............................................................ * .........



93-94
^4
3o*<?^

Investments

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

„, .

Leased t re
fi

. . . . . . . 0. . . . . . . ................................................. 03.-84

Liabilities

Comparative Statement 1931 1 9 3 0 ............. . . .

02

Z

member Banks
Reserve Balances * . . . ......................................................... . 31
........... . ............. .......... . 61
Deficient reserve o<-aalties
Changes in membership . . . . . . . . . . . . . . . . . . . . ^................. 75-73
Non Cash Collect!ons « .......................... .

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

72

Personnel.
Comments ............................................................. ................
Cost of personnel function , . . ....................... ...................
Changes in staff during 1931
. . . . . . . .......................... „
Welfare and Cafeteria
comments » . .............................. .
Monthly basis of salaries by functions 1931-1930 . . . .
Number of employees and expenses by functions
.........
Federal Reserve Club * . . . . . . . . . . . . . . . . . . . . . . . . . ..........

45
43
45
91
47
49
88

Profit, and Loss
Statement in detail for year 1931
................... ............
Summary report for year 1931 . . . . . . . . . . . . . . . . . . . . . . . .
Account since organi sa-tion
............. ...................
Dividends, surplus and franchise tax . . . . . . . . ............. ,
Comments ................................ . ...............................................
Reimbursable Expenditures «. , . .................................... .

3
4
5
S
7-10

86

Reserve Position » ......................... ..................... .................... BO-61
Resources, Comparative Statement 1931 1930 .................
Salaries
Monthly basis by functions

........

I

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

47

Securities
Custodies unit « ... ................................. . » ........................ .
Investments held ................. .. ............. ............................

53
o3

Surplus
Detail statement since organisation ^
Taxes

B

. ............................................................................... .. •

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

43
63-G4

Transfers of *Unds
Comments » ............. ........................... ..................................... £2
Functional oo*ts, number of e::»Dloyees and volume
handled ............................................ .
*54
Transit Functions
Comments ......................... ........................... ......................... ..6* 35
Costs & number of employees * . . . ....................... • .............65
Statistics *. . .................................... .................................- 67-71
Welfare * . . . . ............. .................................................................




91

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b a n k s

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$148,768,433.97

$138,199,850,83

1

ooMPjajflira g a a m

o* si£mu~re?.s

gjgflEttt BSSaCTS BiffS 07 g - I B B l

35fc3U J M g

M a toc-aLjggL
federal laser?® 3ct«® out&tanAing

$

7Xf28S« 310.00

I 58,704,305,00

45,837,280O85

48,446,673.30

143,219*45
1,950,975* 35
l,767,743o04
30,029 049
186s484034
479.40
6, 640, 02

54,946,33
1,372; 005.86
133,335c 47
14,445.08
67,449.45
3,155.67

163,200o81
7,636,305*66

196,164.08
8,580,170,51

Accrued taxes other thaa franchise tax unpaid .
Capital stook euspaase account * ....................
Sundry items payable o » » . » » » • « . , • «

S?s230o00
1,888.34

67,500,00
1.900.00
1,398.70

Discount on U, 3, Securitise . . . . . . . . .
Unearned discount............... . . . . . . . . .

9,836. 3C
65,362,46

13,563,57
39,656.83

500,000> 00
3,444.CO
95,947c 33

350,000.00
3.444.00
354.709.66

384,455.61

323,450.38

14,423a93
153,993.78
81,318074

13,618.03
138,338.15
78,618.74

Special credit account closed banks 0 ..............

1,174,076a27

979,919.37

Discount earned.....................................« . . .
Interest earned.................... . . . . . . . . .
faaaltiee on deficient reearvee . ....................
Klecellaneoas earnings
0 . . . o
Profit and Loss ..................................................
suspense Account - G en era l......................... .
Capital Stock paid U i .................... ...
SorpluS.................... ... .................... . . . . .

301,368*02
SS?a63So71
7,725„76
29,660o7C
13104&LGG
48,?88o04
2,9510360o00
7,143,900* 69

400.993.67
8U.567.37
7.644.01
ll,658ol9
133,334.61

Member ’
tasks - E i u m account.......................
tads of closed banka held for receivers
end others 0 . . . .
ft, S« treasurer • general Account . < . • • • •
,
Doe to foreign banks . . . . . . 0
.
Eon-mmBber beaks - Clearing acoount 0 , 0 • < o
>
Officers1 C h e c k s.............................. 0 . . . .
Federal Reserve drafts . .................... . » . •
Other d e p o sits............... . . . 0 » . . . . .
Sovernment transit items ..............
H I other transit iteme . . . . . . . . . . . .

Reserve
Eeserve
Heserve
Eeserve

for
for
for
for

self insurance . . . . . . . . . .
depreciation on U* 3, bonds . . . .
possible losses account failed banks
depreciation on fixed machinery and
equipment - Minneapolis 0 o
Eeserve for depreciation on fixed machinery and
equipment - Selena
, . . .
Beserve for depreciation on building - Minneapolis
Reserve for depreciation on building - Helena




$ 143,755,438.97

«»

3,063,300.00
7,143,986.39
$ 133,199,350.33

2

n m * gsgssre basis q i uimmwiis
t s ia S S S L m w j i t u M L m m t B u g a $ 143,549.57
35,039*60
132,998,95
597,618,08
3,433,46
4,122.15
111,63
6,786., 76
940,00
7,512.69
14,396,79
72.19
108,37
lo05
24.00

Discount earned on bills discounted - Minneapolis .. 0. •...» $
Discount earned on M ilt discounted - Helena Branch.........
Discount earned on bill* purchased....................................
Interest earned on Ufelted States securities .......................
Interest earned on tfunlclpal Warrants ................................
Intereet earned on Federal Intermediate Credit Bank debentures
Interest earned on Foreign Loans on Qold ...........................
Deficient reserve penalties • Minneapolis................. .
Deficient reserve penalties - Helena Erancho......................
Participation In transactions with foreign banks............. .
Interest earned on past due paper of dosed banks .............
Sale of waste paper . ...................................... *..................
Service charge* on collection itens returned • Minneapolis.
Service chargee on collection it ess returaed-Selena Branch.
Clearing house fines «a...................... ♦
............................. .
Sxpense * Coet of Federal Reserve Currency ........................
Other current expense - Minneapolis................................. .
Expense current - Helena Branch .........................................
Furniture and Equipment « . . . ...............................................
Beserve for depreciation on building - Minneapolis ............
Reserve for depreciation on building * Helena Branch.......,
Reserve for depreciation on fined machinery and equipment I
Minneapolis .................. .
Helena Branch ................
General differences - Minneapolis ...................................
Tellers dlfferencee - Minneapolis ......................................
Tranait and clearing difference* - Minneapolis ..................
Tellers differences - Helena Branch ...................................
Transit differences - Helena Branch ........................... .
Recovery of expenses in connection ulth closed hanks ........
Sales and allowances of old furniture and equipment »........
Recovery of transit items previous charged off ..................
Post dated Government coupons .............................................
Recovery of expenses incurred in 1930 ................................
Profit on mutilated and uncurrent coin ..............................
Profit on sale of U,S8 Securities from bank’s inv, accounto
?roflt on sals of TJ,S, Securities through. Federal Beserve
System special investment account............................ .
Unredeemed officers checks................ .............................. .
Loss on transit items account of failed beaks...................
Settlement of lav suit in case John Hlralng, Eecelver of
farmers Iatl,Bank, Brookings, S,D0 vs. Federal Reserve
Bank of Minneapolis ................... ..............................
Loss on repurchase of securities previously sold under
a misunderstanding.................................................. .
Our fears of depreciation in eterllng accounts , ............. .
Dividends ?aid .......................................................... .......
transferred from Surplus ...................................... . ......... .




26,464,21
803,981,69
88,506*3?
10,946*68
35,666063
2,700o00
62,005o37
1,630* OS
289017
31o06

1,28
27.52
11.31
1,328.68
1,771*60
40.32
_> . 6$
8
382.08^
43b08
80,462,80

15o00

57,682,56
501.64

5,?66o08
306,56
5,303o71
laO,454053
134,649,67

$ 1,214,006.31 $ 1,214,005,31

3

aass: or taraajgoag aro zslzba
SCttUHT ESPQR? 07 MESIBffiS, BBOT838 48D
raowg asp mss A c w poaaa l&a.
o o ra
Darnings
Discounted bills . o © o
Purchased bills . 0 0 0 0 0
United States securities © o o e
Deficient reserve penalties 0 0
Miscellaneous • . 0 « « o
Total earnings « , * •

07
o $ 168* 589o
132,99 8 95
0
597,618o08
7 ,7350
76
0000000

O O 0OO
0

0

0

9

0

0

0

C

0 0 0

0

0

0

0

___

agpeneoa
Cost of federal Beserve Currency
Salaries . 0 . . . . . . 6 . . . .
fazes . o o . . o . ...................
All other
Total expenses * . « . o . • .
Onrrect M t owning*

0

0

0

0

0

0

0

$ 936,604*19

26»4d4o21
55l#054o95
69,004 85
2n . 9a8. 46
-J3&A9Jg** L
(

0

Editions to current net earnings:
Profit from sale of U* S0 Securities . . . 0 $
Profit fTom sale of U0 80 Securities througi
y. E„ System special invtstment account
o»oo»<>4 0.00
All other o 0 o • o • o
Total additions » 0

17,061.73

60.483,, 80
87,883.66
J . . M

142.751,45
$ 180,413.1?

Deductions from current net earnings3
2p Seserve for depreciation on buildings $
Minneapolis building © « * . » « o » $
.
25,6 6 63
60
Helena Branch building 0 o o « . o •
2,700*00
V p Heserre for depreciation on fixed
y
machinery and equipment *
Minneapolis o . . . B o o « o . . « o
62,006 37
galena Branch 0 » » o * • * . « . * „
l,680o
06
Garniture and equipment • • » . o * . * . . . «
10»946<>68
Jdl other ...................................................
...... JLJaiM Z
u ?5 <tf.OnS 0 0 0 0 0 0 0 0 0 0 * 0 . • a a o e . 0 0
.<<.TC
------------------ ------114.808.31
let earnings available for dividends, surplus and franchise tax $ 46,804c 86
transferred i s s surplus 0 0 0 0 0 0 4 0 . 0 0 0 0 . 0 0 . 0 0 m
T'Cs
m
m
8 180.4C4.83
L
.... 150,454,33
Dividea&s paid . o . o o o e e * . * . . . . . . . . . . . .
8CTL0S AgJUgBOBR? A C
CC
Balance in Surplus Account January 1, 1931
« . . .
o
o
«
O
$ 7 ,143,900c 69
December 31, 1931 Transferred from Surplus to Seserve for
depreciation on U* S securities held in Investment account $ 513s769o08
o
December 31, 1931 Transferred froa Surplus to Bessrve for
depreciation on tk S* securities held in participation in
Federal leeerve 3ystas-Special Investment account
140,23lo77
December 31, 1931 Transferred f t m Surplus to Profit and Loss*
Set deficit after ooverisg all charges including dividends
!34.649o67 m . 6 6 0 ja.
Balance in Surplus account January lc 1932




O

O

O

C

O

o

o

o

O

$ 8,366,250.17

4

FEDERAL RESERVE BANK Ot MINNEAPOLIS AND HELENA BRANCH
STATEMENT OF EARNINGS

EXPENSES AND DISPOSITION OF EARNINGS

8 ~ygg ORGANIZATION

Earnings 0 - o « . «
'
.
£ZD€H£66 <
?
■a < o o o
*
>

. o « . . . . » » $31 345 073
.
o o > o • 3 j )
343

Net earnings before charge offs
Additions to net earnings

. ,

> >

$ l ? y954,730

. . 0 „ « o , 0

____ 630,153
$ 183574,88a

Deductions from net earningss
Furniture and equipment o o o o ° » . > * , < > $
509?087
Bank premises depreciation , . ■ «
> * ,
1 8 8 IV854
Reserve for self-insurance
<>. , ■>«_
* 0
500,000
Reserve for possible losses (Net)
,
.,(A) 252/000
Reserve for depreciation on United States
656 445
Government securities (Net)
0 o o ■„
204,732
All o ther o 6 0 0 0
c 0 0 0 on 00 00
Net earnings o 0 0 0 0

$ 14 570f784

* o o o « o o ' i a

Distribution of net earnings.
Dividends paid o ® • ■ - ° n , • * »
>
Transferred to surplus (Net)
. ~
,
Franchise tax paid to U. So Government

(A) Reserve for possible losses (net)
Net losses charged against reserve
Balance in reserve account Dec. 31*1931




$

$252 000c00
,156 052, |7
# 95 947 63

3 P0S8,794
6,356.350
5,1151740

DIVIDENDS PAID SINCE ORGANIZATION
19X3
191?
1913
1919
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1930
1931

*

JBY JQEAHS

57 , 719

87
363 5894,19
168 ,102 97
180, 18S 31
195 870 65
2 1 1 , 65? 03
313 774 01
312. 7 3 3 ,68
303 ,837098
193n 559 45
187 609c35
180 736o 51
1819302 86
184 039 93
184 y445 39
180 454 53
$ 3 p6*98 '79*3 ~5l

DETAIL STATS«1SNT OF .SURPLUS ACCOUNT SINGS ORGANIZATION
January 4, 1918 Transferred to Surplus from Profit and Loss $
37,500 00
ii
December 31, 1918
»
«
«
«
688.871 83
M
March 4 1919
from Reserve for franchise Tax
688.871 83
rt
June 30* 1919
904,357 40
to Surolus from Profit and Loss
i
t
December 31. 1919
1,349. 399 04
ii
June 30? 1920
1 ,6 0 9 ,3 4 1 ,5 6
n
December 31 1930
1,801,708 54
n
June 3 0 i 1931
333,131 95
i
t
December 31* 1931
155 407, 67
it
December 31, 1932
56,893 10
ii
December 31^ 1933
11,373,35
N
December 31, 1924
13 637 c39
It
December 31B 1935
4 ,1 3 9 ,4 5
H
26,043o33
December 31"1936
I
I
11„ 535., 10
December 31, 1937
t
l
4 3 ,350.06
December 31, 1938
I
f
S1,(T 3,18
December 31 ? 1939
*
___ _
914 40
December 31} 1930
Total O
o
*
o
^
o
o
o
a
o
o
m o
m
a
o
o
o
a
o
#7,696,, 334 o05
Less 5
December 31 r 1983 Additional franchise tax
paid far the years 1920 and 1931 „ ,
$ 52,423-36
December 31P 1937 withdrawn from surplus
500,000 00
to reduce book value of building
December 319 1931 Transferred from Surplus for
depreciation on U. Si S e ­
curities
o . a . o a o o
653,000.85
December 31 1931 Transferred from Surplus l a340.073.88
net loss for 1931
134 ,649 67
ff7356,3 5 0 0 7
Balance in surolus account December 31 1931 o ° « - *
STATEMENT OF TOTAL FRANCHISE TAX PAID SINGE ORGANIZATION
31, 1918 Transferred from
31, 1920
1931
31, 1921
on account
31, 1 S 3
6
years 1930
from
1923
December 31 1
December 31 1923
December 31 1934
December 3 1 ; 1935
Decembe r 31, 1926
December 31,1937
December 31, 1938
December 31, 1939
December 31, 1930
December 31 1931

Total o
http://fraser.stlouisfed.org/
December
December
June 2 0 ;
December
December

Federal Reserve Bank of St. Louis

Profit and Loss

ii

37,500 00
524,333 58
1,384,497 63
1 j 166,458,, 98

of underpayment
and 1931
Profit and Loss
a

i

53,433 33
513,038,93
101,450 35
113,543 58
37,355 04
334,380 91
103,815,90
390,150,58
549,358 58
8,339o80
None
5 ,1 1 5 ,7 3 9 ,9 8

6

PROFIT AND L088
Current earnings for 1931 were #936 604 19 or approximate
ly #300 000 less than the similar profits in 1930

To this amount

wae added #80^462 80 of profit from sale of our United States ee
curities held in permanent account aj&d #57,582 56 earned as our
portion of profit on similar ttansactions in Participation Account
handled through New York*

With the addition of $4,70S 09 made up

of expense recoveries and allowances on old equipmentp we had a
total for the year of $1,079,355 64 to apply on our needs before
making any chargee against Surplus Account*
Had there been no depreciation in the market value of
United States securities, it would have beefc possible for us to have
made a better showing at the close of the year, a* far as income
and expense was concernedp than was indicated early in 1931a

Our

normal needs require total income of approximately $ 1 ^200,000 yearly
with the months of November and December being the only months in
which requirements were covered
Apart from the profit on Governmente the credits direct to
Profit and Lose during the year were small,

Keco?ery of expense

incurred at closed banks was $ l l828, 68 oompared to $39,192, 74 re­
y
covered dyring 1930,

The most important charges other than closing

entries, were $ 5 f76S 06 paid in settlement of the law suit brought
by John Hirning as Receiver of the Farmers National Banks Brookings,
So Dr and $5,203, 71 charged off as our share of the depreciation in
Sterling balances^

Other items of income and expense will be

described under the appropriate headings
The normal transactions of the year resulted in a deficit
of # 134,649,67 which has been charged against Surplus Account

This

is tte first year since 1918 in which we failed to make some addition
to Surplus out of current earningso

No franchise tax will be paid

for 1931 making the first break in such payments since 1919

The

disposition of all important charges through Profit and Loss was
as follows;




7

PROFIT AND L033

(Oontd

CURRENT UCPiarSBS
Minneapolis
Helena

#830,436*10
8 8 ,5 0 6 ,3 ;*

4$18p943

Another substantial reduction in costs was made for
the year compared to 1930

The decrease amounted to $ 5 7 ,9 3 4 1
)80

of which #55,561,74 was obtained at Minneapolis and $2 363,06 at
Helena> In estimating one year ago the operating costs at
Minneapolis for 1931 we placed the amount at #851* 54^5
Included in Minneapolis costs is $26 454,31 represent
ing note printing costs and the shipping expense on new notes
from Washington during the year

Similar expense was #56.930*59

in 1930-,
Our conclusion

to 1932 coats is that both Minneapolis

and Helena will show a small reduction with a better comparative
figure indicated for the . irst six months than for the latter half
of 1932

Each important item of our costs will be referred to

later in this report
FUilHITURE ANii ^ 2UIPMSNT
Minneapolis
Helenfe

S 9 9385*70
1,560c96

* 1 0 ,946c68

The above represents the lowest expense for many years
in replacing equipment,

At Helena we discarded a number of transit

machines and on account of a change in handling items, were able
to use cheaper machines

Purchases have been held down at

Minneapolis during the past two years with the determination not
to let expenditures for furniture and equipment exceed |1 5 p000
yearly

The total expended in 1930 was $14; 548 03o

Some over

hauling of currency counting machines will be necessary in 1932
and other replacements will be in order but the total cost should
not exceed the expense of 1931
be noted elsewhere in the report




Additions to our inventory will

PROFIT AND LOSS

(Contd)

RESERVE FOE DEPRECIATION
OK BANK BUILDING__________
Minneapolis
Helena

#35,665,. S3
__ 3 ,7 0 0,00

*28,365-63

Up to the close of 1931 the reserve for depreciation on
our Minneapolis building amounted to ^>1?9_659.41 representing seven
/ears depreciation at a rate of 2 per cent on replacement value
under the plan laid down by the Federal Reserve Board*

It .will be

a long time at tne present rate of depreciation before we can feel
that the figure at which our property is carried on the books could
be realized in the event of a sale-

During the period of con­

struction and since we have reduced Building Account or set aside
as reserves the sum of | 1 93139133a75*
At Helena reserves to the amount of #84^018 74 have been
set aside on the building which is given a replacement value of
#135*000^

These reserves have been accumulated since ISfcO but

there would be a Iocs on the book value of the property if dis­
posed of at this time<,
RESEuVE *0R DEPRECIATION ON
FIXED MACHINERY AND EQUIPMENT
Minneapolis
Helena

#52,005^37
1,68 0 ,0 6

$63,6 85.43

There was no change in the reserves set up at the close
of 1931 from former years? namely 10 per cent of the original cost
kt Helena the amount s e t aside brought the reserve
amount of original cost or #lS,108o99,

up

to the full

The addition of #62,005^37

at Minneapolis brought the total reserved to $446,460 98 and re­
presents s^even years depreciation and a partial reserve for 1934 ,
All of the original cost will have been set aside by the close of
1934
DIFFERENCE ACCOUNTS (Debit)
Minneapolis
Helena

$ 360,37
19075

$ 280«13

Net differences were lower than for a number of years
pasto

Loss through shortages of tellers was |389„17 at Minneapolis

and #31 06 at Helena.,



The year ,r6 transit work at Minneapolis shows

P R O m A.NQ I'0S3

(i'onta)

an overage of |S7<,53 at ItinneSDO is and anot'uer e^.-rss of $11 31
at the Branch>
DIVIDENDS FkxO

$ 180,454 53

Between December 31, 1930 and the close of 1931, stock In
this Bank held by member banks decreased $111 950 with the total
held #3,, 951^350 on December 31„ 1331.

The above dividend payment

is #3,990-86 less than the payment of 1930 and is the first decrease
since 1937„

Active ,d«:}
)ber banks on December 31, 1931 numbered 598

with 40 of these State bank members-

The fall amount of dividends

paid since organization is s ^ O S S , 3^3 >51
DEDUCTIONS i’tiQM SURPLUS
Net deficit on current operations
Transferred to Keserve for de
oreciation on U* S> Securities
held in Permanent Account
Transferred to Reserve for de
predation on U> S» Securities
held in Participation Account
through New fork

$134,649 67
512,733,08

14 0 ,2 31.7?
#7S7,65G„otf

It will be noted that the depreciation on our United States
Securities represents the chief cause for our unfavorable showing*
When it became aoparent during the latter part of 1931 that the market
value of Governments was to show a serious drop, the federal hesexve
Board decided to require all the Federal neeexve Banks to aci# up de­
preciation reserves based on market values shown on December 31c
Instructions were issued to make charges for this purpose direct to
Surplus Account

It is quite likely that i f , and when, the m.rk«t

value of these securities is re-established at the prices for which
these bonds were originally carried, the Board will authorize om
crediting back to Surplus the amounts now set aside




10

m & m m Y s jssw &m ? oy (boss a U B M i

EHBtaft-..8HW8. a*gtjsuamkism
Minneapolis
SABBXBOS IBDH

____ i m

_

Discounted M ild
$ 143.549.57
Purchased bills
132,998.95
United States Securities
597.518.08
Federal Intermediate Credit
Debentures
4.122.15
Municipal Warrants
3.423.46
Foreign Loans on (Sold
111.63
Deficient reserve penalties
&,78§
6.785.76
Interest received on past dns paper of closed banks
14.39b 79
Interest on nonenrrent funds, delayed wire transferee to.
Set profit on U* So Securities sold
Participation in transactions with forsign banks
7.512.69
Sale of wasts paper, aoney bags, etc.
72.19
Service charges on collection items returned unpaid
108.37
Monthly letters sold
Clearing house fines
24.00




Total Earnings

* 910. 623.64

m

Hslena Branch
____ 1931

$ 25.039.50

940.00

1.05

Bmpcs
Combined
,m

i ...

$ 168.589.07 $ 172.44l . 6o
S8.551.27
132.998.95
597.518.06
747,483.68
4 ,122.15
3.423.46
1.326.70
111.63
7.644.01
7.725.76
14.396.79
65.773.89
3.10
7.512.69
72.19
109.^2

11,208.70
115
127

Combined
1329

$ 1,047.771.06
310.203.43
388,603.50
123,396.14
7,001.45
1.42J.72
12 . 474.96
17.833.95

2. 3.47

14

196.24
169.09

9.00

300.00
107.00

136.00

♦ 936.6o4.19 81o235.082.44

* 1 .926,031.17

24.00
$ 25.980.55

Combined
... , 9 10
1

■
1531
Sarnin^s from?
Diaccuntad bills
$ 165.588.07
Purchased bills
133.993.95
United States securities
597,618.08
-4,133^ IS
atfdcInto Credit ?ank Deb
itoicipal arrants
3,423.46
foreign Loans on Gold
111,63
deficient reserve penalties
7*725.76
Miscellaneous
_ 2U m > W .
_
Total
$ 936,604.13
jspensess
Coot of .? 3o Currency
»
Salaries
Stases
ill other

uaa

$ 173,441o60 $ 14,049.09 ? 14,370.12
15,045.94
U .083.26
338#631o 27
49,793.17
63,29O 31
o
747.483,68
343 61
0
0
286.29
110,66
1,336.70
9.30
0
0
643.81
537.00
7,644*01
1.843.93
$ 78,050.36 $ 102,923.64
n ,2360032o44

$ 36t454. 21 *
56f930.S9
i
561,054.95
557,346.73
69,604.85
69 9399o45
393,290o5i
TJ S J 3 6 .4 «L
$ 918,943,47 $ 876#867o37

Dividends paid

$ ISO#454c 53

$ 184,446.39

^ L ^ m 3 9 i S M 3 L S L M !i m
Bills £1S~ Bills
PUTOhaSSd
counted
1931
1930
IS as
1938

t® S. S*.
7
OtCrltieS

$ 4,818,936 $ 7,607,334 $ 36.7S1.33C
4,043,859
7,870,007
33,786,786
31.634,673
6,328,337
9,812,359
11, 199,882 15,354,918 13,701,741

a a m m s - i— —
«
Bills Die- Bills
counted
Pnrah^vied
1931
1030
If*
1928
1937
1936
1935
1931
1933
1923
1931
1930
1919

3p600jC .
4a366
40645
4.383
3uS37
4c 000
4.030
40458
40503
5c 119
6.479
6.233
4.381




10748,£
3.904
40903
3o970
3.413
3.343
Zo 34c
3*720
4.135
0
6c097
5.359
4.267
Discount
Disoouat
Diaomntt
Discount
Discount
Discount
Discount
Discount
Discount
Discount
Discount

rate
rate
rate
rate
rate
rate
rate
rate
rate
rate
rate

V0 SQ
curiiies
2c 333f»
30380
3.960
3o740
3.581
3,850
3,841
3.8*9
4.350
3.437
3.055
2.016
3.460
effective
lowered
low ed
levered
lever«d
raised
raised
raieed
loversd
levered
lovered

SSoathly
Avarage

Monthly
Average
J22J___

Federal Into
Credit Bank
SfTM W Tf
$ 158,671
0
3,679,668
686,803

4,744033
$ 3,304.83 $
46,931.26
46,437.33
5,793,07
6,783*29
..a*. 440. 87
3 76,678.64 | 81,406.61
$ 15,037.88

t 15,370.46

*W H »
itaicipal
Terrante
$ 97,671
34,330
140,326
8,784

Foreign
Loans on
QOld

l«rt-

6,375 $ 39,460,306
0
34,733,
38,340 40,513,743
0 40,952,128

m im a u m a
Federal Int.
Credit Bank
Debentures
3,59S£
0
4.783
3.885
3.654
3.82?
0
0
0
0
c
0
0

Municipal
arrants
3o3 Q
0<
3a 877
4>98S
4.253
3.723
4.000
4c000
4.374
4.500
40752
5.807
0
0

January 1. 1933
Jaacary 11, 1933 to
August 15v 1933 to
Octobsr 14, 1924 to
Septsnber 13, 1937 to
February 8, 1928 to
April 25, 1938 to
May 14 1929 to
February 8, 1930 to
April 16, 1930 to
Septanber 13, 1930 to

foreign
Loans on
Oold _____ 5 o
PH
lc779^
0
5c031
0
0
4.500
3.563
3.000
0
0
0
0
C

3.399$
3 310
4.636
4.004
3.380
3» 793
3.651
4.084
4.411
4.640
6.031
5.755
4.114

«
4fe
46
3|0
4fp
Wr
y4r-tf.

z iy

12

EARNIMGS
Earned at Minneapolis
Earned at Helena

#910,333 64
25.980 55

* 936r604,19

Throughout 1931 it has not been volume of earning
assets which had a bearing on our gross income so much as the
low rates obtained on acceptances and Government securities
allotted us by the Open Market Conference at New York

Lack of

other demand forced a gradual reduction in the rate of return
on these assets until the final quarter oi the year
Except for the month of January

borrowings of our

member banks showed a greater volume throughout 1S31 than in
1930o

Over the complete year average daily advances to members

in 1931 amounted to $4,81 9,000 compared to #4 043*000 during
1930.

Due to the rate of 3^ oer cent which prevailed through

all of 1931v the discount received from members totalled
#168„589oO? compared to $1?2 441 60 in 1930 when the average
rate was 4 =265 per cent*

‘ he activity of borrowing demand would
T

have been more evident but for the many closings which for a time
added current paper to the closed bank list almost as rapidly as
n ew

offerings were received,
Although the average of all earning assets decreased

$ 8 P000,000 in December from the $55*397,000 average shown in
November,

there was no falling off in income because all the de­

crease in holdings occurred in acceptances^

Allotments of such

b ills had been quite small during the first nine months of 1931
Shortly before the increasing of the New York discount rate in
October, acceptances came into the System freely but at very low
rates, mostly 1 per cento

After the raising of the New York rate

to 3^ ner cent on October 16, acceptance rates improved sharply
but as other demand ^as increasing at Minneapolis and we were
carrying too high a proportion of Governments, no further allot-*
ments of b ills were made us until near the close of the year;
As a matter of fact; Foreign bank purchases absorbed practically
all the narket had to offer*
while not large,



Our present volume of acceptances,

is at rates of 3 and 3 l/£ per cent, bringing

13

gA&UNGS (Contd)
us almost as much income as the previous heavier voluae at low
rates

The daily average of bills carried in 1931 was <7,607,000

in comparison with an average of #7 870?000 for the orevious year
An average rate of 3 o904 per cent in 1930 produced profits of
#228,551 37,

The smaller volume in 1931 at an average rate of

lo748 per cent gave us total income of only #132^998 95,

With

present rates maintained in 1932f there need be no increase in the
volume of purchased b ills over the 1931 average daily holdings
»o double our earnings from this source
In both 1930 and 1931 we had to look to investments in
United States securities to provide the greater part of our in
come

While we had a profit of #80,482o80 on Governments sold

from our Permanent account and 557?582,56 profit from sales made
by the Committee in New ¥ork during the year

this nrofit has been

over-shadowed by the heavy depreciation which has taken place in
the market value of our holdingSo

However, from an earning stand

point there should be a big improvement in 1933.

Although we

carried an average of $36*781,000 in Governments throughout 1931
and $4 ,0 0 0 ,0 0 0 more than in 1930 P the earnings of |597,518,08 were
$150s000 less than in 1930 because of the low rate of 3 233 oer
cent for 1931-

The oresent basis of earnings from Governments

will give us an increase over 1931 and it is quite likely the
income will exceed the *747^483,68 received from U, S

securities

in 1930.,
All replacements of recently maturing Government se­
curities have been at rates which will enhance our profits

In

the list of United States securities given below comorising the
System,, Soecial Investment Account, in which we have an interest
to the extent of 3£ per cent 9 you will note that $9SP775,000 of
Liberty Loan bonds are callable in June 1933

Xe all bonds are

amortized to callable date^ the full amount of interest on these
bonds will be placed in income account after June 1 5 t 1933




14

earnings

(conta)

HOLDINGS OF UNITED STATES SECURITIES IN
SPECIAL S'jCSISM IM SSm SK T ACCOUNT

Du^
Treasury Bills
"

"

"

Certificates of Indebted
ness
w
a
M
I
t
*
*
9
Treasury Notes
First Liberty Loan Bonds
p \v
\
"
Fourth Liberty Loan Bonds

Kate

January 13, 1933
January 25 1932
February 8 , 1932
February 15,1333
February 24.1932
March 2„ 1932
Maroh 30 IS32
March 15,1932
June 15, 1932
Sept 15, 1933
o
i
l
i
Septol5g 1932
Dec. 15, 1932
June 15, 1332 47
June 15" 1932~
47
Oct 15, 1933 38

Amount
$

Zk
2g
1 1/8
v
3
3±
3(

H

4i

2,000 000
18^000,000
22,725*000
7,111^000
7,907,000
18,925*000
6,050,000

53,731,500
8 0 ,5 00,000
53,500,000
rxy
59,551,500
20 000 000
80,035 000
1 6 ,7 50'000
115,040,000
3 "563 P 81S , 666
T
~

At times during the past few months the small amount of
free gold available made it aoparent that we should dispose of
some of our Grovernments.

We did sell $ 5,00 0,000 to New fork on

October 16 but repurchased $2,000 00C several days later and the
balance on November 4 0

Nowr with the return from Governments im

proving constantly, it is desirable to retain our holdinge if
possible^
Since September 16 we have been carrying $430. 000 of 3$
Federal Intermediate Credit Bank debentures maturing Aarch lb*
1932 and taken on a 2,?6 pex cent basisr

Debentures of the follow*

banks were held on December 31^
Federal Intermediate Credit Bank. Berkeley Calif'*
"
1
1
M
Houston* Texas
"
H
«
«
Omaha, Nebr.
*
"
*
"
Sto Paul, Minn 3
H
1
1
”
Spokane, Wash ,

|100,000
100 000
80,000
100,,000
50v000
P 3d ;000

The total income from these debentures in 1S31 was
^4,122ol5 with no similar income in 1930o
Beginning in May and throughout the balance of 1931 we
have carried Municipal Warrants for various Michigan and Wisconsin
banks,

taken on the regular discount basis 0

This class of earning

asset averaged $97,671 daily with $473,545 45 held at the close
of the year

Earnings for the year were #3,423 46 from warrants

Similar income in 1930 was $ i 3326,70



15

SA N G (Gontd)
R IN 5
Penalties collected from member banks for deficient
reserves were $7,725 76 an'i approximately the same in 1930

At

idirmeapolie $ 6 ; ^85 76 was collected or an increase of $624 over
l&30o

Penalties at Helena were below normal with a total of

$940 collected compared to #1,433 33 in the previous year
All items comprising miscellaneous earning? aggregated
$ 3 2 ,3 3 6 o 73 for 1931 and $55,000 lees than the total of miscellan^
eoue receipts in 1930

The principal item in each year wap the

interest received on past due paper of closed banks iiaking final
settlement,

For the past year such interest collected was

#14,396.-79 with $65 773 89 obtained in 1930

The only other item

of importance represents commissions and other profjte as the
result of transactions with foreign banks conducted through the
Federal Reserve Bank
$7^513 69,

New york*

For 1931 these profits were

Similar transaction in 1930 gave us $11,3 08c70 as

our share of the profits
As in former years we have prepared a table to in­
dicate the proportion of our 1931 income which comes from earning
assets originating in our own District and the proportion re
ceived from Government bonds and the various transactions we
participate in through New York

During: 193S which was an un­

usual year, the major part of our income came directly from member
tanks

For every other year since 1931 the greatest portion of

our income has come from without our District
•

For the past year Government bonds produced S3 8 pe

cent of our total current Income

We actually received a smaller

amount in 1931 but the percentage was increased because our total
earnf.ngs were $3GOpOOO less than in 1930o

The proportion of total

income received from without* the District during the past year
was 78 4 per cent compared to 80 per cent during 1930




16

EAKNISaS (Contd)
I

INCOME FROM DISTRICT
1S3:.
1930
1929
1168756^^0" ^172. «41 SO $l„0CT,^71o06
3,433o4S
V>336-70
7^001 45

Discounts fsr members
Warrants
Penalties for deficient
reserve*
7,725*76
Interest cn cast due oaper
of closed bankts
14,396 79
Interest on Fed„Intermediate
Credit Bank Debentures
960 58
kiscellaneous
205o61
f l 9 5 'm ^

7,644 01

12,474*96

65,773.89

17,833*95

0
9 1 y493 36
652 59
510o53
f23‘ 355“ ?5“T T 7 T 7 7 7 ^ 5 5 T l ‘
77,

INCOME FROM WITHOUT DISTRICT
Discount from Purchased
Bills
• $lo 2?998095
Interest on U, b, oe
curities
597,518,08
Interest on Fed.inter.Cr
Bank Debentures
3,151,57
Foreign Loans on Gold
111.63
Participation in trans­
actions with Foreign Banks
7.512 69
'■ # 7 4 i

$228,551*27

$

747,483 68
0
0
l l a208~70

3 5 2 " S 2- i 3 g ? f o g ~g5 ' " 3
-

310,209 43
390,986 97
31 r902. 78
.
1 P425 72
14,420 96
*'4 5 :6 4 5 6 $

* 56,755 of this income originated in our District,
Average monthly income in 1931 was $78,050 35 compared
to $102,923 54 monthly in the previous year

The profit in 1931

was obtained from average daily holdings of 139,450,000 at a rate
of 2 299 per cent which was the lowest average rate ever obtained:.
Although the 1930 average rate of 3 310 per cent was the orevious
low, we received over #250 000 more of profit from average hold­
ings of #34£ 734 000

There seems to be no question but that a

continuation of the present rates will give us sufficient income
in 1932 to cover all needs




if

g MBi a m n m a m t

S B BSS.-KPSgSK8 OF jBBLEM Itt hsssto babk Of tqmn&Apous m mmsa M B
SB
Minneapolis
___ m

\ ___

Salaries:
Bank Officer*
$ 104,09^.67
Clerical Staff
295.’
All Other
(taverners' Conferences
611.52
federal Beserve Agents' Oonferenoee
federal Adriaorj Council
1.315.66
Directors* Meetings
5.60.13
0Traveling Expenses
l 6. 57i.SS
Assessments for fadsral Beserve Board expenses
16 .r n .72
Legal Fees
lu. 265.te
Insurance on currency and security shipments
X0.-fil9.lk
Other Insurance
28.013.7#
Taxes on hanking house
67.680.37
Ll£it, keat and power
I 5 . 25i. 2i
Bepairs and alterations ’
hanking houss
h,602.20
Bent
Office and other supplies
12.158.17
Printing and stationery
13.W3.28
Telexfeese
4,920.89
Telegraph
12.077.15
Postage
U . 230.37
6
Bxpressags
10.U68.99
Miscellaneous
__ 32.58,$5
Total exclusive of cost of currency
$ 803.981.89
federal Beserve Currency:
Original cost, including shipping charges
23.3«6.
Oost of redemption, including shipping charges_______
Total Current Expenses
I 830
10
♦Other than those connected with Governors' and
Agsnts' conferences and nestles of Directors and
Advisory Council.




Eelena Brandi
_____________ I 2 3 i

___________

$ lU,0*
10.56
3>l,9¥».17
9 .090.06

M iM d
a a ..

$ 118,135.23
330.399.32
102,520.40
611.52

1 .315.66

3.657.73
1 . 80U.U8
956.71
835.39

7.0&.87
17 . 565.00
l6 .M
81.72
lU.865.U2
12 .U10.23
3i . 67i . 5i
69.50U.85
16,207.92
5.»*37.59

l.m .98

13 280.15

1.39*.7*>
993.12

600.00
1 661.09

1.3U0.7U
663.03
5.586.U6
6.272.58
1.309.80
.I i.\
?
.506.37

,

1U.78U.02
5,'

17 . 663.1
52.^2.95
U.778.79
32/
$ 892.
23.^6.!
f 91! $ ? ! '

OoafclMd

Combined
M29

$ 122.067.03
338.938.93
‘96.2U
0.76
608. 8U
317.36
1.297.82
6. 529.38
12 .920.88
18.503.91
l8.U3i .23
13.916.52
720.80
.399.U5
17.201.73
6.155.04

$ 117.783.28
3*6.319.30
89.287.99
567.36
319.86
1.395.55
6.563.55
IU.716.36
19.U33.l6
17.077
1U.808
30.755.2U
77.128.25
17.9660 84
7. 096.92

u - .m
5 . 165.60
i 8 . 03i .76
6U.9:

18 . 503.62
18,601.12
S.*?*. 35
18 .U21.19
63.OU .33
ll.OU7.U7

8.

12.1

$ 91!
52.685.1:

79.6U2.1T
U 2B J 6
$ 1 .022.009.00




H& gpggtM m m
Bgg
tt

BgggB11M B M B L lB I
1 l& H H g M B

Bental of furniture and oquipssiit
Bepalre and maintenance of furniture and equipasnt
Outside protectlonf
i
vault inspection*tine eervloe, etc.
Outside laundry and cleaning charges,, etc.
Licenses and peralts
local transportation-ear faro and taxi biro
Foot office box and postage~a»ter rental
Sewspapers,periodicals,books, 'binding, ete0
Oolleetion charfii and protest feeo absorbed
Clearing houes a»nbership does
Supplies furnished Keatoer Banks
Oopieo of bank examination reports
Ooasaroial agsnoy credit reports and servioos
Saployees* photographs
radical service and physical examinations
Gafetaria (let exponas)
Sottertalnasnt of beakare and others not in bank’ s eaploy
Officers9 and eagAoyeee' dinners
^ployeee1 educationsAaarican Institute of Banking
111 other
federal Reserve Club
Meaborehlp dues and donations:
Aasrloan laainre1 Association
State and other Bankers1 Associations
Credit Ifen’ s Associations
Aasrican Acceptance Council
AaerScaa Society of Agricultural Engineers
Twin City Bask Auditors* Conference
fez Payers* Association
Minneapolis Polios Benevolent Association
Minneapolis Tire Departssnt
International Sheriffe1 A Protective Officers' Association
Batlaaal Industrial Conference Board* Incc
Folios Officers1 federation
Chrlstsas donations
Conaterfeits end dieconnt on foreign currencye etc0
Miscellaneous expense in connection with closed banks
Minneapolis Surrey Oossdssion
State Coaalsslon on Criae Prevention
Pension Coaaittee
Ooaalttee on luik Beserves
Oonalttee on Branch, Group and Chain Banking
All Other
lOCAL HXSCSLLAH20U8 BXFKVSB8

HiBMapolii
X22L

135.00
19
136025
'*15,00
1.878.33
27.25
915.50

525.00

3 .M28.51
279.68

512.36
5 , 600.00
21So50
IJoOO
Wo 35
H0
232o15
229o25

bl*w
____ 133L.

$

31.80

113.30
160.09

1.10

162.00
175.60

Contained

r-ffisr
1.705.21
528.30
2.038.(2
27.25

f e
9*19.62
708.50
89*.39
36.30

3 i£ * . i i

3.295.53

916.6b
687.00

267.75
36,00

283.11
106.10
512.36
5.867.79
25H.50

62.60

w .95
H.232.15
291.85

106.10

13.00

897.00

897oOO

3 , 120.00

300.00

3 . 1(20.00

300.00

15.00

315.00
290.00
19H.OO
300.00
15.00
30.00
675.00

290o00
XSK 00

>
10.00

300.00
15 o
00
30o
00
6750OO

100.00

100.00

Cosfelnsd

r

«S
33.

.581.00

6 750.66
19.00

33.OO
»».56&.76
650. 7H

26.70
1 ,030.00
570.00
3.225.50
315.00

302.00

ItloOO

300.00
15.00

30.00

751.00
100.00

25.00

100.00

100,00

25*00
5To50
U 0o
27

1 .626.53

110,00

25.00
57.50
220.27
1.626.53

lOOoOO

H,107.30
H T
1
*12.

901.
1^25

92l.**5
392.00
2. 031.81
282. >8
1
>•2.25
7,318),90
495.00
53.75
32.00
6.003.88
511.89
1.053.16

.

1 201.00

578.25
2 . 875.00

315.00

292.00

785.00
300.00
15.0*

>
•
5.00

738.50
100.00
25.00
50.00
100.00

57o50

,59.50

192.35

*•07.92

1*S61«37

100.00

13.756.72

100.00

9
d

2.001.39

* 30,532.85

2.001.39
* 2.153.73 * 32. Sek M ... I"g r .jfe 8

Uj. j H T
S

EPr E
X S tb S
Minneapolis
Helena

i 918,943 47

} 330,433,10
381
,506 ,37

Another subetanti &1 reduction In our yearly costs ^as
showr. for 1931 when comoared with the previous year
duotion wap $ 5 ? ,9 3 4 080,

The net re

The reduction in 1930 compared to 1929 was

$45,I41„73 so that the costs lave been lowered in excess of $100,000
during .the pant two years.,

We had estimated an expense of ?993,25G

for *330 and $942,855 for 1931 with the actual result* of the two
/ear*; $40-000 below the estiroates

A large part of the decrease each

year has resulted from a curtailment of the printing program for our
Federal reserve notes.,

Other savings have been made which resulted in

the yearly expense haeie being, reduced $103,033 53 since 1939.

During

this psriod *35,860 was granted in salary increases and had to be ab­
sorbed to obtain the r e s u l t s indicated,
For 1931 the average monthly expense has been $73 578,54 in
comparison with a monthly total of $8I,405o61 in the previous year.,
For 1?32 we believe this monthly average will show a small decrease
from 1931 with most of the improvement oomirig during the first half
of the year

Our Budget for 1933 has been completed and indicates a

total of $820,333 for iiinneapolis and $86,765 for Helena

These

figures are $1 0 ,2 0 3 ,1 0 be^ow the actual expense of 1.931 and ware de­
termined after allowing for an increase of 110 349 93 in the budget
for Failed Banks and salary adjustments of $ 2 s700

Particulars of

our costs are *;Iven under the Expense classification and also uhdt'i "ve
wri te up of the var ious func ti ons *
5>LAa 1ES
Minneapolis
Helena

$ 551p054o95
$492,9S0clS
__ 5Sf Q?4<,79

Uet changes from 1930
Payments to Officers, net decrease
*
,1 Clerical Staff, net de,
crease
payments to Guards and .T tchmen
&
net increase
”
! Non-Clerical btaff
!




Net Decrease

$ 3 931 80
8 ,5 3 9 961
I 1 3 ,4 7 1 041

I

3,397,33
o a892,41
6
S4

i

6,191

1
1

20

g P K K (Oontd)
jC S g a
Our Staff on January 1, 1831 was comprised of 259 persons
at Minneapolis and 3S at Helena

This is an increase of 4 persons at

Head Office and a decrease of 3 persons at the Branch during the year
There ^eie n j additions in the number of people employed on normal work
at Minneapolis, but an increase of 3 in the collectors at closed banks
The turn over of help has been very small with no ret change in officers
transit department employees or those on Fiscal Agency work

The number

jf persons on fi seal work for which we are reimbursed, v»as 7 both in
1931 and 1930
Total salary oayments in 1938 may not exceed the payments in
1931

depending somewhat on the necessity for maintaining the added work

ere at clj&ed banks throughout the year, the amount of exoense recovered
f om banks making settlements^ protest fees collected and other condi­
tions which nay not. be controlled

nrw t departments have been more

active than in "'930 arid some departments car, stand an increase in volume
■without requiring a .y adaed pay roll expense-r
closed bank representative** no highc • salaried

With the exception of
-mployeee have been add

ed during 1931 and the small salary adjustments made as of January 1,
1G32 were to those in minor oosts
GGVEBiSQRS CONFERENCES
FEDERAL RESERVE AGENTS CONFERENCES
FEDERAL ADVISOR* CONFERENCES

|

311-52
none
1,315 .-86

The Federal Reserve Agents held no conference during the
past year,

Expense of Governors' Conferences covers two meetings and

one trip East to attend the meeting o/ the Open Market Policy Confer
ence

Advisory Council meetings were held, one in each quarter of

the year

This travel expense, o?us $300 as our share of the Sec re-

tary *8 salary, makes uo the above total
DihlOTOho ig*TIKG*
Minneapolis
Helena

5 ",0 6 1 07

I 5,367-13
3 »394 74

One more foeeting was held in 1931 than in the previous yeax
accounting for the increase of #457,75 In fees and traveling exoenses
for such meetings

The March,July and November meetings were eliminated*

At Helena the payments exceeded those of the previous year by $74 74
Three Board meetings were held in 1931
Executive Gonoittee ineetinge




the other expense represe ti

No Board meetings weie ve,«1 in i«*30

21

EXPEN
SES (Contd)
TRAVELING EXPENSES
Minnea polie
Helena

I

17 565 00

116k571v88
,*9^3 13

This expense in 13 31 It heavier than for any other year
since 1928

Some of the increase it

to more frequent tripe of

the Officers in attending Group meetings and making direct contacts
witk member banks hut the main reason has been the necessity for
placing more representatives at closed banks.

It may be that a

considerable amount of this latter expense can be recovered but in
the meantime serves to expand our current expenses

Our l r'Z" >xpenee

of this character i« not likely to show any reduction
ASS3SSMI2NT FOR FEDERAL
RESERVE BOARD £X?ENcE-i

# I S , 48 i c' 2

Payments to the Board are based on the Capital Stock and
Surplus of each Bank and are revised each r * months
of assessment applies to all the Banks
normal in 1930 and 1931c

The same rate

Cur paymei vs have Veen below

For the fir ft half of 1932

ai s as ee seed

833/10*000 of 1 per cent on paid in Capital Stock and Surplus
rat*

This

ie higher than in 1333 but the reduction in our Surplus o '

# 7 8 7 i)650 52 makes our payment les?

It is more than likely the Board

will increase the assessment rate for the fi nal s < months of 1333 and
w ? have provided for a payment of $18#500 In oar 1333 Budget
r
LEGAL FEES

S :4 ,8 6 5 43

Minneapolis
Helena

$149365>42
_800 00

Regular retainers paid counsel in Minneapo is amounted
$9 y000 and hair not changed fox some yea e

Beg inn ng In January 133’

we have paid Counsel Yteir at Helena $100 per month
is provided by Minneapolis •
yearly

cne half

which

Weir was previously paid $ 3 S600

In addition to this saving, the fees paid on s »eclal catnv

have been lower than usual

Such : fee amounted to $4y831

t ;.ii chief
x

of which *as payments of $2*134 03 in the Farmers National Bank of
Brookings, 2
Bank case




D matter and $750 in connection with the Qrage Nat
>
The net reduction in legal fees has been $3,600 compared

22

E PSM
X 8E& (Conii)
to ,1830 fees

We can hardly exoect t e feet? paid in 1932 to hr any
h-

lower than for the past, year
INSURANCE OH QUKHM O f
AJID SEGURlW Wt¥dSWfe
Minneapolis
Heleria

$ 1 2 ,4 .0 ,3 3

$ I^ y~49; i4
] ,6 8 I o09

Expense of thin charsuitet has shown reduction* for the past
two years bu not through any redaction ‘ a vola/r
tshipments

n in number of

In 1330 the insurance rate w&s reduced f i M

10 cents to

£ cer ts oei $1^000 end since Oct^be^ 1, 193* t?*e ^?&te has been 7 cents
p^i $1,000

Thie reduction at iilnnea L'lis in 1931 war $ l y3tt? 83 with

an increase «t Helena of - 1
J 11 5,

Receipts of currency from members

^ere materially lees in 1S31 than ^n the previous year but the ship
menfcs to members in these yeart changed but little either an number
or amount.,

Considerably more expense was incarre-l during 1931 on

sejurity shipments*

The closing of most local branches jf Sat-tern

bond houses made necessary the frequent shipping of securities to
New iork and Chicago and caused us to absorb $1,453 43 of insurance
compared to *497037 in 1930o

It is probable that pome improvement

in this respect ^ 111 be evident in 193 3,
INSURANCE
(Other than on currency
and security shipments)
Minneapolis
Helena

$31,671*51

#38 013 78
3 .6 5 7 C73
T

Changes made in our coverage should have resulted in a
reduction of insurance costs compared to 1330 but results were
affected by conditions over which we had no control

Through

the death of *ir , barren and one other employee in 1930, *he death
<
claims exceeded the yearly premium with the result that our rate
was raised on life insurance and we received no return premiums
During the previous year we received return premiums of $4,831 54v
one-third of which was credited to insurance expense and the re
mainder to Profit and Lose,

At the close of 1930 we had assumed

the building up of the belf Insurance Keeerye to 3500p000 wr>uld




23

EXP N
A SE (Contd)
enable us to reduce our Blanket bond to $500*000 primary and $500,000
exceee with a saying of approximately #5,000 yearly*

However, your

Board determined on a primary bond of *1,000^000 which reduced the
yearly expense by $2,500
Since January 1, 1931 we have had a burglary policy of
$19000y000 covering; securities in the vault

This coverage was ar­

ranged at the low yearly premium of $413 83 and is intended for added
protection to the eafe-keeping securities held for our member banks>
Amounts paid for insurance at Jiinneapolis and Helena during 1931
riiix'e as foilowb s
Head
Office

Helena
Branch

Employees group life
£ 7 943>65
Fidelity bondg
435.00
Blanket bond burglary, etc 0 16.753 87*
996. 86
Workmens Compensation
/ire ,fu rn i ture, equipment
75 00
& supplies
599 45
Automobile
Building Insurance (fire
1,330 95
liability, etc,}
4 28 0l3 .78

Total

983 76
30,00
3 315,81
61c55

| 8 .935,41
445,00
19,099-68
1,058 44

33 80
38 ,,20

108 <30
,
$37 S5

204 78

1,435 ?3

i

*3,Sb7“ 73

p r fM

i r

•One eighth of fidelity bond premium of 517,500 is
paid by Helena •
TAXES OH BANK PftSttlSEfc
Minneapolis
Helena

$ 69,504 85

$67gS30 3^
1 884 43

Amounts reserved for taxes in 1931 were substantially the
same ae in 1930,

there being no change in valuations at. Min^rai >olis

or Helena ana only small changes in the rate

As noted «l«ew ^c e

we have been figuring taxes on a valuation of £3,350*000 for 193^ and
will receive a valuation of #3,350.,000 for 193 3

Thie will make a

reduction of #2,000 in the amount to be set aside during 1932
At Helena the amount reserved *as ^14 97 less than in 1930
and it is suite likely the amount reserved in 1933 will show little
change




24

EXPMSEfc

(Cortd)

LIGHT, HEAT ^ < PQffER
i
Minneapolis
Helena

> 13,307 92

*1.5 251*23
S56 07i

Of the above items our heating costs show the most variation
on account of weather conditions and changes in oil contract prices
*iuring 1931 we received and paid for 10Cy635 gallons of fuel o i l a
Heavy

purchases had been made in the final quarter of 1930 which helped

to make the results in 1931 more favorable^

Between *ay 1 and October

1, 1931 we purchased only 5,061 gallons of oil and this at the contrac ;
pr^ce of £5 35 per 100 gallons

Fox the balance of 1931 we procured

39 ,,595 gallons of oil at the new.price of *4 35 per 100 gallons,

The

total expended for oi) in 1931 was i4 327 01 compared to $6,717 53 in
1930

With the irilisr weatheT and lowered price, fuel oil expense

should be comparatively lo* in 19 3£
Light and power costs at Minneanolip were $9 674,33 for the
oast year and *358 70 more than in 1930

These CGsts do not vary a

great deal but ™ are promised a lower volta e by the electric oo'upany
e
which should lower this expense*.

At Helena light and power costs show

little change from previous year*

Fuel costs wer.3 brought sharply down

two years ago by installing mechanical stokers which enabled them to
burn slack coal instead of lump coal and save $5 50 per ton
REPAIRS AND ALTERATIONS

3AUU^yS0V^E

f

5,437,59

~£\ntieapolj s $4,602 30
~
He7ena
835 . 39
The above total ie icwer than normal and $717-45 lees than
such costs in 1930
futi?

This class of expense should average lo*er in

year* became of our Ce ls ’ > to charge againf * ’’Reserve for
n

Depreciation on fixed iiachinery and Equipment1 some of the items w
1
hich
have been classified as repairs*

The principal item will be the main­

tenance contract of the Otis Elevator Company calling for
| 3 P166 yearly*,

ny«ent of

Alterations of any site *ere few in number and are

mentioned under "Bank Premises” e

At Helena the only item of im

portance was the constraction of a new fortress at the rear of the
bank lobby as a oceans of improving the protection measures at the
3 rancho



25

EXPENSE^

(Conti)

0 m 0 8 AND OTHER 8UPPLISfl

Minneapolis
Helena

*13,380* 15

*12 159*17
1 131 96

We are able to report another substantial reluctior in the
co«t cf of fice and building eupoliee

faring the yeai new allocations

were given pome i tems which had formerly been classified und.*r
'’Supplies” making the comparative showir.g better than would otherwise
be the case

However, decreased costs and L w e r inventory have lessen

ed these costs approximately #3 500
PRIMTIHG AND S T A T I O N /
Minneapolis
Helena

$14,734 02

vl3f4 4 3 .38
1,340 74

In comparison with 1930 another substantial reduction is
shown in printing and stationery exoense

In December 1930 we paid

#1*700 of* b ills normally belonging to 1931 but after making allowance
for this fact we still have had a nice reduction in costs

borne of

the business done by printers is taken at a very narrow profit and the
price basis given us in 1931 may not hold for 1933

Part of the re­

duced expense however, is due to measures of economy put into effect
several years ago,

The printing and stationery expense at Helena is

4448 less than in 1S30

Branch needs are taken care of through

Minneapolis on practically all quantity orders
TELEPHONE

$ 5,583 92

Minneapolis $4,930<>8S
__ 665 03
Helena
These costs showed no change from 1S30 at Helena but
are |405 49 greater than in 1930 at Minneapolis

There has been

only a small increase for exchange service but toll charges i n ­
creased materially through bank closings and emergency calls o x d *r
Lng currencyt ^tc,o




26

EXPSSSS3 (3ontd)
m EORAPH

| 17,663 61

.

Minneapolis *13,077,15
Helena
5.586 4 5
This eipenee at ilinneapolis is *370 in excess of the wire
costs of 1930. but through further economy in connection with Helena's
telegraphing we have been able to reduce the total cost below one year

9^0

For some time we were sceptical ehout having the daily balance

sheet wire cone iro:a Helena in codeP but this plan has now been in
operation for over nine months and results are satisfactory, with a
saving of approximately $30 monthly

Messages sent over the commercial

wires have cost less than in 1530 due to the reduced volume

Private

wire connection ir fc the other Federal Reserve Banks cost us #7y834 54
j.t
b as ad on the number of words dispatched from Minneapolis

Altogether

we sent 30,590 messages over the private wire containing 433,885 words,
In 1930 we sent 4£Sv3c5 words costing £7,337,94

The Branch ^ire ex­

pense is confined almost entirely to commercial messages with $86 16
of private wire expense during the oast year

fie have beer absorbing

more wire expense in connection with securities than formerly and be~
lieve there will be a tendency towards heavier telegraphic expense in1933c
PCaUag

> 53,533*95

.Minneapolis
de1ena

f46,250«37
6,373,58

Over a period of years we have gradually reduced the amount
of postage stamps and stamped envelopes used,with the most recent
change in the currency division

With the elimination of wastage and

the re<V*ced transit requirement, our postage expense has been brought
substan tially lower

The entire reduction of #13*400 compared to 1930

should not be attributed to these causes because $3,786 of postage was
purchased on December 30, 1930 which normally would belong in 1331 >
However,

the net saving effected in 1931 compared to 1930 is equivalent

to one month’ s postage requirement
Postage used on outgoing cur*eaoy arid coin and

amount

retmbureed member banke on currency shipped ue totalled #17,2*7 5" In
1931 compared to $15,754 24 absorbed In 1930



The reduced size of

27

tlPfliaE (O td
si cn )
the cilli? nv* in circulation has some bearing on the shipping costs
but the reduction has not been 6 * much ae Might be expected.
*

Uore

shipments containing s m a l l e r amounts o f currency are offsetting* some
of the saving which might otherwise be made in shipping ooste,
for general mail has shown a decrease compared to 1S30P

Postage

although this

expense in some departments, the failed Banks department, for instance,
has shown a heavy increase,

It is likely there will be higher postage

expense in 1932 ,
gXPRgSaAGffi
Minneapolis
Helena

f 11,778.79
^10,468,99
1,, 309090

The above expense is ^45C less than one year ago,

Thes*e

costs incur from incoming shipments of small bills and both outgoing
and incoming shipments of silver and minor coin.

Wo have the privi

lege of sending out ooin by mail if we so desire, but the member banks
do not fc
et this privilege,
compared to

Small bi l l express costs were *3 ,6 3 0 43

^4 80S 51 in 1930 with $5 ,7 8 3 ,4 8 absorbed on ooin shi^>

mente comoored to *5,435^47 in the previous year

Included in above

total is i?S3„31 covering the maintenance of the bank trucks
FEDERAL RESERVE CUaREKOy
* 23,386 59
(OriginaT cost and shipping charges)
Our regular schedule for printing of notes was completed in
July with a small quantity of larger bills prepared in August at the
request of the federal Reserve Board.,

For the remainder of the year

no notes were printed and none will be printed before July 1933
During 1931 the actual cost of notes prepared, was *21,515 with #1,870, 89
exoended for movinR new notes from Washington to Minneapolis >

On all

costs connected with new notes we had reduced expense of £39,298 54
compared to 1930

Unless some very unusual demand developes for notes

during 1933, our expense for printing and shipping of new notes from
Washington will be approximately | 3 0 ?000 less thar. in j931o

All print

ing expense and shipping costs of new Federal Reserve notes is paid at
Minneapolis




28

fiS R B g (Gontd)
PBS
F£Da Ka L j
tiEasavs CURftSNOi
Cost of nedemptTon - Shipping Chargee
With most of the o1i aeries federal reser

i r.OS? 63
notes retired

prior to lS31y oar redemption expense paid the Treasury Department
wa? reduced $1^177 84 ir 1931
tc

'fe had been reserving 1350 monthly

*et redemption charges but have found this unnecessary since

Juna last

During the year we were instructed to charge the insurance

on cui,' fit notes returned by other federal reserve banka to this
account otherwise, the showing would be more favorable compared to
l a s ’ year
;

Ae t;*e amount no* reserved for redemptions is { l , 88S r

^t T
vLll be unnecessary to reserve further amounts during 1933
CAFETERIA (Net expense)

# 4,333 15

Thcie has been a gradual falling off in receipts caused
of «*ate by pome reductions in our prices

food costs have also de ­

creased materially with total paid for food and service, during 1931
$13^465 75 compared to $14,5 95.93 in 1930

Receipts fro® employees

iii 1931 were £9,233 30 leaving $4P233 15 to be absorbed by the Bank
Under federal Reserve Board ruling
of food and pei/ice or $4,488 45

could absorb one tMrc1 of cost
The facilities offered by our

cafeteria are generally satisfactory

Sesides keeping within our

allowance, we have* been able to add to our service equipment during
the past year
MISCELLANEOUS SXPSNaSs,
Minneapolis
Helena

{ 33,686,58

$3GV533 85
3,153 73

Through the change in allocation of & number of expense
itencs, our m soellaneous coste arc higher than a year ago but this
increase, is reflected by decreases m oVher items of the expense
classification

Supplies furnished to member banks formerly charged

to "printing and Stationery" are nor given miscellaneous classify
cation,

hepairs to equipment and maintenance

compared to #943 63 in 1330

ontractp cost s i . ’ o:* Z'

The increase is due to the inclusion

of purchases of repair parts used by our own mechanics and formerly




29

S P N jE (Contd)
XS g a
charged to “Office Supplies !
t

Another important item was outside

laundry and cleaning amounting to #2 035 42 compared to ?>3Q4 39 one
Jear ago

Towel and-linen sex ice formerly classified under "Office

p.nd Bu id ' ng Supplies”

3 now allocated to miscellaneous expense

Miscellaneous expenses at closed banks to protect oui in
texests required -Jl^SSS 53 for the past year

One year ago we paid

#1,831 3? for this purpose and in 1989 when we had several representa­
tives working on a commission basis in lieu of salaries and traveling
expensesp we expended $13 756 72

Copies of examination reports fur­

nished ' - the Chief Examiner of this District or by state banking
department- when :ar representatives were not present
The ..^ducti^n i< n

o

f

cost $ 5 V867 75

banks is noticeabl.a here because the cost

per report has not been lowered

\ s paid $5,^50 S3 for the same
Y

service in 1330
Car fare and taxi hire cost 3918 30 and covered the presenta
tion of items for payment

picking up of St

protest items and visits of our nurse

Paul clearing iterns,

Meter rentals increased from

{443 33 in 1930 to #387 for the past year., the principal addition being
caused through installation of postage meters at Helena
other than commercial agencies c o s t |3 S 0 4 H
19300

Information

compared to $3,29 5,53 in

Many books are added to our library yearly and there is also

included under this expense item the Dowp Jones Co- ticker service
costing #lj,500 a year
Contribution towards the education of employees through the
American Institute of Banking were lo'^er than in 1929 or 1930

Oux

payment of #697 00 resulted from a lower assessment on all the
Minneapolis banks for the stated purpose

Donations to the federal

Reserve Club were £3*430 cover‘ng all the Club activities and in
.
eluding rebates of tuition fees on obtaining graduating certificates
In December we paid our proportion of three bills under
instructions from the Jederal Reserve Board

These weTe an follows

#538 98 as our share of Pension Committee expense which goes back




30

&XPa5o i (Contd)
E3
over ee^era" y-ars, *434 OS for rzoenf=e of the Committee which hae
bee'i wjiking! o.i a proposal for a new rgeerve requirement and $ 2,0 0 1
covering cost to date of jbta’ nisg information and preparing report,
in connection with Branct

uTOup and Chain Barking

The principal amounts severed Plough duets and donations
j j id */ IS"1' ^ere ac folio-*'t

Dues American Bar >eie Assoc 1a i o n

|3«$*00j| btat^ and other Bankers Associations $390o00| Credit ilen1*
At;tociatione $194 00, A.nerican Aooe;>tance Counc 11 $3Cj 9 w , Tax
Payerfc Aeu « iation £5?5 00, Mirneai oils Police Berev.'ent ;.eeociat L.r
.
}jCkJ 0C; National Industrial Conference Board $100,,00




AvJGUM
IlUg jT t Q IU
Jt T i
During the year 1331, the planning unit of this function
continued to check purchases of printing* stationery and office
supplies, eliminating unnecessary expense for type changes in
multiple copy forms, special rulings^ expensive oa-oere
and wadding of forms, and other avoidable itemso

assembling

In addition to

revising forms to decrease coets^ changes are constantly being made
to expedite the handling of transactions by avoiding extra tabula­
tions, etco

We have also standardized several forms for Head Office

and Branch to secure advantageous bids on joint purchases,
T e were able to refrain from purchasing more filing equips
T
m t for the safekeeping and closed bank departments by shifting a
en
number of records seldom referred to into the file vault and de­
stroying a large number of obsolete records of no permanent value,
At the suggestion of Head Office, beginning in March* the
Branch forwarded its daily balance sheet figures completely in code,
saving at a rate of $4-00 annually*
The total expense of the accounting function during 1931
was $38,877,03* a decrease of #1,900 from the 1930
Effective July 1, 1931,

*ctal cf $40 772 09

the accounting function released its claim f oj

one half of .the time of a senior employee to the Float Force, the
Examination Division sharing the remainder of the time,

Through this

change we were able to show a reduction in salaries of £463 5$ over
1930 after allowing for several small increases granted as of January

1 ? 1C31,
to 1930,

Telephone and telegraph costs decreased $553 13 in comparison
the esving resulting from the reduction in the number of '"ire

transfers for member banks.,

The re&ainder of the decrease in expense

J87S,?9 was mostly the result of using accounting department smployees
to perform services which in prior years were performed by other
departments*,
On the following page are comparisons of the. expenses of the.
units comprising the accounting department for the year^ 1931 and 12IW,




32

AOCOOHTmG eVKOTIOK
(kinneapolie Onlyf

OOiffABATIVE STATEMENT SHOWltlG
MUitBER OF EjiPLOYEad. SALARIES ANTi EXPENSES
AOOOUNTXMG ’/ QMCflOK T 3 3 1 » f ’
a30

ADMINISTRATION
fcO of
o
_________ __ ___Ufi’ioerp
Year 1931 ’
65
Year 1930
.55
.

GENERAL BQQKd
"too
Year i931
Year 1930

of

2 45

Officere
Salarice
T T , 755701
4.750., 01

FEDERAL xtEbERVE EANK ACCOUNTS
No of
Employees
Employees
Salaries
i ear 1931
5,368„69
2,88
/ear 1930

EXPENDITURES
YeaFT93T
Year 1930

Year 1931
Year 1930

Telephone
Telearaoh
2 ,2 7 9 ,SB

Employees Telephone
Telegraph
Salaries
■
*
to~ r
I T , 3fe i a i p r
3,373,25
3*244*44

Employees
salaries
$ 4,337,14
3,986,17

Other
Expense
? “460c50
434.96

NOo of
Employees
57
,81

Employees
salaries

Other
Expense

Ok AND TOTAL ACCOUNTING
M .- 'of
o
_______________ Offic e rs
Yeai 1931
oS5
Vear 1S?0
,65




Other
Expense
* 607, 82
1 ,0 6 7 ,6 4

NOc of
Employees
1,65
1,55

PLANNING

Total
Expense
4 ,830c 31

Employees Telephone
Other
Salaries
# 5,817®27 T 1,508-12 T "234.-96
1,484 4 5
6,747,68
448 50

au.*U3ER BUNK ACCOUNT 5
3
Employees
NOo of
salaries
gmployees _
$' 5,37 8 0£ 7
T
Year 1931
“3.
TO
Year 1930
5,290,73
3.75

TRANSFER OF FUNDS
N .- of
o
Em
]
ee
Year 1931
51
lo 53
Year 1930

Other
Expense
4 0*78
80 30

2,000 01

80 30

Total
^ 8^560. 35
8 *330> 63

Total
Expense
3 TT, 9 § o79"
F
5 D ~4
6 ,358-37

Othe r
Fxpenee

Total
Expense

336.87

7,875.22

Other
Expense
^
To
390c43

To t al
Expense
5,25 So'56
6,008,12

Total
Expense
$ 4,737,, 3*
4,411 13

Total
Expense
2,008-31

No* of
Telephone
Other
Total
Employees tialarie# Telefcraoh
£
Expense
Exnense
12.e'3~ 130. 553 =93 '^S,465.,''fa' $1,
j837.38 #33,877,02
13..97
31 >015o 54 7,038 68 3,716„S7 40,773 09

33

AUDITING /UHCTIQN
(Mlnr cap 11 « Only}

All assets and liabilities of the bank were audited at
irregular intervals throughout the year

One examination of the

Helena Branch ’<ae made during the year by Head Office Controller,
Audi te conducted durin*. the year did not disclose any
irregularities, nor differences 01 importance

All clerical errors

were promptly adjusted as disclosed
Sight clerks were employed regularly" throughout the year
on auditing wori? and In addition two men were assigned to check
all transactions In and out >f the vault

The salary of these two

clerks, however, was not charged to auditing expense but rather to
the cost of handling cash and securities
The Controller has bad supervision of both the auditing
and accounting departments throughout the year and close co-operation
has been maintained between these two departments
have fouaci it possible to do so.

In so far as we

internal controls Yave been eetab

1 i sh ed and r ain ta 1n ed in th e var 1 ou a ope rat ing depar tm nt s
a
e

Th ic
i
materially lessens the possibility of errors arid hae a discouraging
effect on di shonesty
The expense of operating the auditing department was re
duced from $23,045 06 in 1930 to $32,431 S3’ in 1931

Part of this

reduction is due to one of the olerks being assigned notary work and
the protest fees collected being deducted from salary expense
A comparative statement of the number of employeee and
cost of operating the auditing department for the years »831 and 1930
is given below,
<uS30
Number of Officers
tinmhe r of E ij loycet
>
>
Salaries. Officers
Clerical
8 tat: one ry and eunpl i e ?
.
Telephone and telegiach
Pos tage
All other

r5C
S 17
* 4 000 CC
i 7*873 40
326c99
10 ^ 6
* 0,00
140 77

$ 4 j 000p00
* 8 ,4 5J 56
282o13
5,50
153 12
±43 7S

Total




34

Bias pasam s 5SPCt~ TnSBSSXBi 31. 19S1.
?
33S5AL aaamre BAET 031 MgSiP0Z33- MlflK.

TOUPna S IB
Orl^lsftl ocit of Ifisd
Incidental expessdittorea connedted with. purcfcaee
Total - - - - - - - - - --------- -- Leee proceeda £ron sale of salvaged aaaterial - - Coat of bnlldlng site •

^

600sQOQo 00

$

602,466.66
1.948, OS
60Q.52Q.Ga

$

m a m
Preliminary expenditnrea - - - - - - - - - - - - $
3 , 0 0 0 .4 8
Coat of constructional
Building exclusive of vault*
1 , 730, 0 6 5 .3 7
& fixed aachinery and equipaent---- - - fault constructiona8 including
any additional structure or
foundation aada neceaaary by
323, 760., 54
vault6 and vault equipment - - ------ ~ Fixed aaohinery and aqoipaani - - - - $623,965,55*
Laaa aale and charge-off of
2 mechanical coal atokera
620,053,95
(Original ooat $1*956 e a c h )---- —
3,912c00
Miscellaneous building construction
panaa inourred by Federal Reeerve Banks
Faea & Expensee? .architects — ------- 148, 0 37.79
rnginecra - - ---15.846.00
faxes — ---- — - — — --74. 3150.00
Maintananee -------------------21.708.66
Coat of nev Building - - - ---— ----| 3.936.799.39
Coat of building and 'building a l t e ---- $ 3 , 637, 3 3 0 .0 6
Charge-offas
Depreciation allowances - - - - - - - $ 1 , 03 7 , 4 0 8 .6 8
'lasas — - - - - - - - - - - - - - - 74, 3 6 0 .0 0
Maintenance — • • — - - — ---___ g L m a
8 1 . 133. 4 6 4 .3 4
T o t a l---- ------- - ----- s !403, 865.71
Book value of proparty ------- - — —

mourn*.
Beaarve against depreciations
Building - - - - - - - - - - - - - - - - - Fixed naehlnery and equipment - - - - - - T o t a l --------- - - ------ -- -

t
(A )
$

floor apace?
(a) Qocupiad by Federal Esserve Bank--- (b) Ranted ------ --------------(c) Unoccupied - — - -- -- — * - - —
(d) Total floor area In building - - — —
(A) Set after charging off $782o40 ahloh was previously
reeerred aa depreciation on coal etokere.
*Xncludea $100,000 of architect1a faea and expensss0




179, 659o41
44 6 . 4 6 0 .9 8
62 3 , 130.39

134.739 Sq. 7t

f Sq. Ft
f Sq. It
>
134.739 Sq„ 2*

M OB «g?g.a*K »flT * v m m w , m i

Original coat of land and building
Coat of remodeling*
So lidly exclusive of vaulta
and fixed machinery and equipment - - - - - - - - - fault construction, including
any additional structure or
foundation made necessary by vault - -- -- -- -Vault equipment* including doora*
lining, and all Interior equipment - -- -- -- -Fixed machinery and equipment - -- -- -- -- -- -

16p000o00
5?»642093
9(266o00
66a560o63
160108o99

Tea eg

Architect* •
Contractor4» Coomieslon - -

-

-

--I.-***-------- .

5,433*5?
7.44a. 13

Total eost ..................................................................1774474=14
Leaa proceede from eale of aalvaged material - - - - - * •
75o00
Coat of building and building site - -- — - -- -- -- $JL77<399i^
t

Depreciation ajLlosancee charged offt
Charged to current net earning* - -- -- -- -- -Book value of property

1. 31.39Q 16
o
166P108,99

tmSQRAMM
Eeeervee againat depreciation?
Building - - - - - - - - - - - - - - - - ..............
Fixed Machinery and Equipment - • * - < * « > • - - - - Total

840018o?4
16.108.99

................................................................... $ 1000l2?o?3

Floor Space?




Occupied by ?> S Bank - -- -- -- -- -- -- -- 4700 S$* ?t0
= o
Bented
--« -o
0 Squ i*t0
Unoccupied - ------p 8q0 Fto
fetal Floor area in building
4700 8q0 Ft0

36

$ 100.000.00

C a g *o o la d -1 1
h r a ff f n
99
Charge-offa of Wilding ( including vault, but occluding fixed machinery
and e^uip»fnt) to reduoo book raluo to ootlooted roplaconont coots
TaxO0 on building during ported of oonotrust ion

1922 - - - ................... ...
1923
W 8 4 - .................... ...............

$

5,200? 00
14.760„00
54.890,00

Cost of aalateaaiieo during period of eoactructlon
1623 . . . . . . . . . . . . .
$
2,101,93
1934 . . . . . . . . . . . . .
191603., 73
Charge off of
1920
1921
1922
1923
1924
1926
1926

eoaetructioa eooto
. . . . . . . . . . . . .
. . . . . . . . . . . . .
. . . . . . . . . . . . .
. . . . . . . . . . . . .
. . . . . . . . . . . . .
. . . . . . . . . . . . .
.......................................

Pee.31,1927 Transferrod

$ IOQoOOOoOO
3,381.40
8,446.8?
20,361<, 04
219,316.89
30,463.84
67-438.6*

$ 74,350-00

21.706.66

487.408.68

533,464.34

f o rorpln* to red«eo book value of building
rm

Beeerve for depreclatloa oa building
1925 . . . . . . . . . . . . . . . . . . . .
1926 . . . . . . . . . . . . . . . . . . . .
1927 - - ............. .................. ...
1928 . . . . . . . . . . . . . . . . . . . .
1929 . . . . . . . . . . . . . . . . . . . .
1930 . . . . . . . . . . . . . . . . . . . .
1931 . - . ............................. . .................

500,000.00

$ 38,814.40
32,916.86
6,666.63
25,666.63
25,665.63
25,665.63
26.666.63

Beeerve for depreclatloa oa fixed machinery ead equipment
1924 . . . . . . . . . . . . . . . . . . . .
| 12,814.73
62.396.65
1926 - - - - - - - - - - - - - - ---. . .
1926 - - - - - - - - - - - ----- . . . .(a ) , 71,222.95
1927 ----- . . . . . . . .
' “ 62,006.36
1928 62,005.35
1929 . . . . . . . . . . . . . . . . . . . .
62,006.36
1930 - ---. . . . . . . . .
62,005.33
» 3 1 ..........................................................63.005.37
total depreciation ea back premieee - Uianeapolio - .

179,669.41

____-446.460.9S
| 1,769,584.73

SSL-B* BEABCH
Charge-off of building ( lacludlag vault, but excluding fixed machinery
and equipment) to reduce book value to eetloated replacement coot*
1920 .......... ............................... - - - - - Beeerve for depreclatloa on building
1920
- ..................................... - $
66,447.49
1921
1,893.23
1922 - -- -- -- -- -- -- -- -- -- 1,666.37
1923 - -- -- -- -- -- -- -- -- -- 1,571.05
1924 -- - -----------. . . . . .
3,136.80
1926
3,125.80
1925
2,700.00
1927
...
2,700.00
1928 2,700.00
1929 . ---- - 2,700.00
1930 - -- -- -- -- -- -- -- -- -- 3,700.00
1931
3.700.00
Beeerve for deprelcetlea oa fixed machinery and equipment
1922 1,610.90
1923 - .(b )
lt641.73
1924 - -- -- -- -- -- -- -- -- -- 1,610.90
1925
1,610.90
1926 1,610.90
------- . . . . . . . . . . .
1,610.90
1927 1928 . . . . .
.................... ......................
• ,610.90
1929 - - . . . . . . . . . . . .
*10 "0
1930 -- - . . . . .
I ,,410. SO
1931 . . . . . . . . . . . . . . . . . . . .
1 . 380.06
Total depreciation oa bank prtaloee - Helena — —
(a ) let after dedwtlag $782.40 on account of eale aad charge-off of two

nechaaieal ~oal etokerej (b) Bet after deducting $59.17 for replacements.


21,290.15

84,018.74

16.108.1
121.417.88

37

A *

ySP^HAL SiWBfg BAgK 0* S g ^ B S S L . ^
qacua-om. ,q p o p , . m u m . igp maB.MtfB>WBr iaa j s m a t t
g
Fixed cjMshinsry
and squjgpent..._

Land
Jrngi
gSlf
$600,530. 5S $3,416,745.84
COST
1926 Adjustment of Architect*0
fees, transferred froa building
Ioe,eve. CO
to fixed machinery and ecfuipaant
1926 Sale and ohsrge*eff of two
Mechanical coal stOk«rs
OHAEOSD 037*
1919
1920
1921
1922
1923
1924
1925
1926
1927
Total
Book value grots

£533,965055

AlUcJZ

3.tlfc.ee

$

83.637.330.05

,

$

100 000.00
3,381.40
U , 646.87
37,323.97
393,310c63
30,463.84
37,438.64

_ ss& m g t,
_

hoo. 000.00
___ _______
$600,630.66 $1,383,381.60
s m s s iA im

,053.55

$1.133.464.34
$3,403,356.71

Ha a m m. « x k urn
g a ra

Depreciation Keaerves
1924
1925
1926
1927
1928
1929
1930
1931
Total depreciation Heeerree
Set Book value
$500,330< 66

wax turn,

J8,541*232.06

100,000.00

■jS.31S.745.84

$100,000.00

M &

$

33,814.40
33,516.86
5,666.63
25.665.63
39.665.63
35.665.63
33.358.63
, 103, S22o09

$ 13,814.73
53,396.65
71,333.95
63,005u36
63.005.35
63.005.35
63,006.%
63.005q37
$173,993o5?

O
aLJBfca ,
Ji. 777,735,32

sssmn zm. o >um&sm
?

C3iffl03.0J7fl O LABD. BffllBISS. A33 ?XT3> M&CH1BSBT ASP BOPCTSCag
ff
Fixed machinery
16.108,99
C X56~.33Q.X5
$ M JM Lgg
I
31,390.15
$
a.m s a _____M 2 & ^ _

$ 177.
F 31,390.16
166.108.99

n w a B M w a i a Esa® 3 A3D g » SOCK TASC3
Depreciation Reserves
56,447.40
$
1920
$
1,883.33
1921
1,655.37
1.610.90
1922
1,541.73
1.571.05(a)
1923
1.610.90
3.133.80
1924
1.610.90
3.135.80
1925
1.610.90
3.700.00
1926
3.700.00
1.610.90
1927
1.610.90
3.700.00
1928
1.610.90
3.700.00
1929
1.610.90
1930
3.700.00
1931
-- - ki ^ ,y __
9 y
Total Depreciation Reserves |_____
§ 84.016.74 $ 16.106.99
i 5.000.00 $50.381.26 «..... 6
Set Book Talus

IOC. 137.73
* -56.981.sa,
-

Total Cost
Charged off 1930
Book rains gross

(a)

lot after dodootlsg $ 6S.17 for replacement*.




38

a WP S S
AL HillS S
Operating costs of our property have shown consistent
redactions since coming into the building but the ‘'Provision of
Space* item,, which is the classification given our real estate
in making reports and comparisons

is still the most expensive

item of our functional costs,

This is due largely to the heavy

taxes we are required to pay..

Out of a total of #137^739^74

spent during 1931 for the operation of our property, over 53 per
cent or #37 S20 37 represented taxes,

The actual expense of 1931

is $ 3 ,7 3 0 26 less than the estimate made at the beginning of
this year

For 1932 we estimate an expense of $1339975 ^hich is

approximately #6,500 less than the estimate made for 1931o

The

chief savings in budget for 1933 compared to 1931 come from a re
duction of # 3r000 in taxes, #500 less for fuel oil and the elimina
tion of #3,500 for replacementsc
Ho major repairs or alterations were undertaken during
the nast year, the largest single item being #363 spent in adding
another room to the two rooms oomprising the Bank library on the
third floor,

with the painting and decorating done by our own men

In order that the labor of cleaning the outer walls and courts
mifb* be lessened, a cold water line was run to the roof at a cost
of $<nj4,,08^

Changes were made in the ventilating fans on the 4th

floor to reduce the noise.

Through defective work originally,

about half the plaster on the ceiling of the transit department
had to be replaced*

The defects did not appear until the five year

guarantee had expired*

removing of plaster was done by our own

work^sn w5th outside labor doing the plastering at an expense of
#378 33
The nrincioal item covered in our exoense for reoairs is
the contract with the Otis Elevator Company requiring oayment of
#190 50 oer month for the care of all our elevators.

»

As this ex

pense covers all replacements and keeps the elevators up to
standard at ail times, the charge may nroperly be made against
‘'Reserve

io ^

Fixed Machinery and £auipmentw«

By handling in this

manner our current expense account will be reduced #3,166 yearly.
Other replacements of building- machinery, rhen of any considerable
amount will



be similarly treatedo

q<

B N PREM
AK
ISES (Contd)
Arrangements have been made after the first of January
to decrease the voltage of electric current supplied us for power
and light

This will result in a reduction in cost of these items

hut the amount may not yet be determined.

These costs have been

quite uniform with one year agoy but we are satisfied such a high
voltage ie not needed^
Our fuel oil contract for one year from October 1 ; 1931
was given to the Cedar Lake Ice and Fuel Company on the basis of
$4 35 per 100 gallons, the lowest price we have ever obtained

For

the previous year the contract price was #5 25 per 100 gallons
The lowest price we had obtained prior to the one now effective
was $4-60 per 100 gallons for the year ending September 30, 1930
All oil purchased must pass through our own guage so that we
assume no loss th ough expansion on deliveries.

The continued

mild weather has lessened our fuel requirements and will help in
reducing costs
BANK PREMISES

(Depreciation/

There has been no ohange in the amount reserved yearly
as depxeciation on our building since 1927

At the close of 1927

the Federal Reserve Board agreed to our charging |500y000 against
Surplus Account and using the amount to reduce Building Account on
our books to # 1 ,2 8 3 ;281 50>

With the continued lowering of con

stiwction costs it is increasingly evident that the book value of
our property is much too higho

With the various amounts set aside

at the close of each year beginning with 1 9 2 5 we have accumulated
$179; 659 41 leaving a net figure of #1,103.822 09 to represent the
building proper at the close of 1931.
year

Depreciation is figured each

at 2$ baseC on estimated replacement cost under a formula laid

down by the Federal Reserve Board for all Federal Reserve Banks
Several years a\o wlien our property was valued by the
Appra sal Cormit^ee of the Real Estate Board, the figure set for
the building^ fi^ed ma' hijery and equipment was #715 000 whi?,e we
were required to ' a~rv *hese items on our books at # l o903^335 05
F xed machinery and equipment costing originally $620 053 55 hae
had reserves se* up yearly since 1925 oi 10 per cen



The amount

40

B N PR ISES (Depreciation) (Contd)
A K EM
accumulated to the end of 1931 is #446^460 98 so that by the cloee
of 1934 we will have set aside the entire original costo

No

charges for replacements have been made against the reserve account
to date,
The present value of our land has not been determined
tout on the last tax statement was placed at #637,900
cost was #S00s000 with *100?000 written off in 1819,

Original
Allowing for

all credits to bank premises and depreciation which has been set
aside,

the net book value of our Minneapolis property on December

31 was #19777,735 32„

Realizable value is still considerably be

lew this figure >
At Helena further depreciation reserves amounting to
#4 ,3800 06 were charged against Profit and Lose Account0

Including

write off of $21,390 35 in 1&20 the totaX provided towards re­
duction of original cost to date on building has been $105,308 89,
This leaves a book value of #5P000 for the land and j5 0 ,9 8 1 o36 for
the building and vault exclusive of fixed machinery and equipment,
A depreciation reserve of 10 per cent yearly has been set up on
$16,108 89 of such equipment with the final 10 per cent provided
at the close of 1931«

With the full amount for replacement of

fixed machinery and equipment now reserved* no further allowances
will be necessary except as replacements are charged against the
reserve account,

We could not dispose of our Helena bank premises

for* the amount at which carried and the value wi 11 probably further
decrease,
BANK PREMISES (Taxes)
There was no change in the amount reserved for taxes
during 1931 from the amount paid for 1930 namely #67,500.

Under

the plan of taxation in Hennepin County, the valuation is changed
only in the even years, consequently the value of our property
for tax purposes was eet at # 2,250,000 for 1930 and 1931

Under

the stipulation agreement signed in October 1S30

this figure

will be reduced to $2,150,000 for 1933 and 1S33

The amount re

served in 1933 will be approximately $641500



The tax levy made

41

BANK PKEatlSSS (Taxes)

Contd.

In 1931 for payment in 1S32 is at the rate of 74 , 70 mills.

For

the previous year thie had been 75.00 mills so that the reduction
will bring a further small sayings in our taxes*
PAST AMD rUJUftE VALUATION FOR TAX PUhf'OSEa
1937
1928
1939
1930
1931




» a.,500,000
2 400 <300
3,4 00 .0 00
3,3 50 ,0 00
3 ,3 5 0 ,0 0 0

1S32
1SS 3
1S34
1935
1936

j 3 ,1 50,000
3.150 000
3,0&0,000
3 ,0 5 0 ,0 0 0
2 000,000

42

FURNITURE AND SHIPMENT
The total expended on furniture and equipment during 1931
was brought considerably below the average for the past few years
and is $3,00 0 less than the amount used in 1930

Ordinary replace

ments will make it difficult to improve on the 1931 basis for perhaps
more than another year

Many excess machines have been traded in on

the purchases of the past two years

so that the total for allowances

will nox be as large as in former years?

The falling off in transit

volume and elimination of endorsements, have been the direct causes
of much of the reduced equipment costs.
All purchases of equipment made at Helena are carried on
the book6 at Minneapolis and with our own purchases aggregate
#10y946 68 for 1931.*

Sales of and allowances on old equipment amount

ed to #1,771 50 and if applied on new purchases would be equivalent
to 16 per cent of costo

The items disposed of had an inventory value

of |l,938o70o
Purchases made at Minneapolis and Helena during 1931 were
as follows*
Minneapolis
3
5
2
5
23
1
13
6
1
1
1
1
3
6
3
1




Protectographs
$
318., 00
Typewriters
278f 40
t
Burroughs adding machines
364*60
£111 ie adding machines
3 .6 9 0 ,1 4
Electric fans
463<>05
Mimeograoh with motor
450«,00
Domore health chairs
300»53
Domore office chairs
123^00
Instograph time recorder
137„75
Postage meter machine
230*00
Parcel post attachment for postage meter
35*00
Marchant electric calculator
630*00
Addressograph cabinets
70»50
Steel chests
1*833«00
Police guns with belt 6
90^00
38 Colt revolver
32*80
Steel shelving for file vault
233*97
C Jiei miscellaneous equipment
311 „98

#“$737677T

3
3
1
1

Burroughs transit Tfcachinee
Underwood typewtitere
Swivel Qhai*
Burroughs operator *'e chair
Total purchases
Sales and allowances on old equipment
Ket

# 1,233*99
249*08
64 ,85
_
_ 22,05
$ 1 ,5 6 9 .9 7
1 0 p946*68
1^771*50
# S , 175718"

43

FURNITURE AND EQUIPMENT

( Contd)

reducing the number of transit machinee at Helena, a
eaving is made on our maintenance contract with the Burroughs
Adding Machine Companys

Through the use of fewer machinee at

Minneapolis, our mechanic ie able to keep the equipment in better
condition and less repair parte are purchaeed0

much of our equip­

ment other than machinery, is built by our own workmen but we have
not included these articlee in our furniture costs*

These will be

given a nominal value in future*
The purchase of 7 adding machines at Minneapolis and 3 at
Helena orovided over 50 per cent of the total expense in 1931®

The

only other purchasee in excess of ^500 was a new marchant Calculator
for the Agentfs Department and S steel chests for use in the se­
curities division of the vault*
During the past month the Bank inventory has been checked
with eome difficulty and a new plan will be installed w'lich will
admit of more ready reference to the card records and simplify
future inventory taking.
After completing our purchases of 1931, the aggregate cost
and value of our furniture and equipment going back for the full
period of our existence ie as followsi

Amount expended to close of 1931
$ 458,119,,58
Purchased during 1931 « isiinneapolis
9,373,71
«
»
1931 - Helena
1 .5 5 3 097 $469 o063-34
Less amounts received for furniture d
t
equipment sold or traded in
22: 465,05
Net amount expended
#44«?601*19
Inventory valuation at Minneapolis
»
h
« Helena

$ 1265383*09
9ll33,03 #135,505,12

Fire insurance carried at Minneapolis *
$
»
"
»
■ Helena




35,000*00
10,000,00 $ 350000,00

44

e x a HOLs;aas of the bank a n d fe d era l
KESKHyg AGENT AT THE CLOSE OF BUSINESS PEOEHBSR 31.
1931.AS COMTAHSD TO DECEMBER 3l, 1530,
IiELD BY BANK
1931
OJld
Gold
Gold
Gold
Gold

Bull tor.
Coin
Certificates
Settlement Fund
Redemption Fund

4

Total Gold Held to Bank
y

1930

75,811*55
3 ,4 1 9 ,0 8 5 .0 0
2 ,2 4 0 ,300c00
9 ,3 6 6 ,9 7 8 ,9 4
7 0 4 .0 4 0 .8 7

$ 1 5 ,8 0 6 ,3 1 6 ,3 6

$

56,952*50
3 ,5 1 3 ,535o00
1 ,6 3 8 ,000c00
10,075,951*06
801,645^33

f l 6 , 086,083,79

HELD BY AGENT
1931
Gold Coin
Gold Certificates
Gold with F> Ro Board

1930

# 3,580,000o00
5 ,5 9 0 ,000„00
4 9 .3 0 0 ;000,00

# 3 ,4 5 5 ,0 0 0 .0 0
8 ,3 7 0 ,0 0 0 .0 0
3 6 .5 0 0 .000c00

Total Gold with F0 R« Agent

$ 5 8 ,4 7 0 ,000c.00

$ 4 8 ,335,000o00

Combined Gold Holdings

# 7 4 ,376,316c36

$64,411,083^79

CHANGES IN STAFF DURING 1931
Jan, l a 1932
Minneapolis Officers
Minneapolis Bank General
Minneapolis Closed Bank Department
(Collectors and Clerks)
Minneapolis Transit Department
Helena Branch
Fiscal Agencys Paid by Bank
Reimbursables
Officers
Employees

11
136 (3 ex,help)
13*
56 246
29
7
13
23&

Jang l a 1931
11
157(9 ex,help)
8*
56

1
5

242
32

13
TS7

•Includes one collector in Closed Bank Department, who iE working on a
commission basis as of January 1, 1933 and two for January 1, 1931o
PERSONNEL
During the year 1931, 33 employees on a yearly salary basis
of $23,168 left our employ at Minneapolis and in the same period were
replaced to 27 employees on a yearly salary toasis of $ 2 6 ?613, the in**
y
crease being made necessary in connection with the collection of naoer
of suspended banks©
At the Helena Branch 4 employees left during the year with
an annual salary basis of $3,320 and only one employee was added to
the pay-roll for the sane period on a yearly salary basis of $1,330,
a reduction in the annual salary total of 33,000®




45

post oy M aeom tooth *
Offloors
Salarlaa
* 1,590,02
1,890.03

Bashar o f
.n m u s u

.30
• 30

Toar 1931
Toar 1930
Monthly irors**
T **r 1031
Taar 1930

132 50
133oS0

$

0
3 07
Otbor

133o50
194.67

87o93

T otal
_M a S S *M L
| 2,028.49
3,660.74

169.13

9.93
7.33

169o04
213c 66

1,909,48

$

306.33
C o n trib u tio n
is L £ JH ai

‘f 3,130,00
3,976.60

S iu o a tlo n and
ft* M m
Toar 1931
Toar 1930
M onthly Araraga
Toar 1931
Toar 1930
to lfa ro and
Toar 1931
Toar 1930

$

♦

Total
3yp*n**
1,990 d08
l, 614088

3,463.81

lo31

M onthly Araraga
Toar 1931
Toar 1930

.....

J o
34.86

2Bploy»o»

tnabar o f

B lr la g B iployaaa *
am loroaa ft B t t fe
i M r 1931
Taar 1930

Othir
. asgggf,

...

C o n trib u tio n to
^
3ef$
897.00
1,030.00

i 800o 05
637a 06

T

$

$

$

$

360.00
347.96
M o r of
'-

1.00

1.00

Monthly Ararat*
Toar 1931
Toar 1930

____S r t i r l* * ...

1

1,800,00
1,800.00

Taar 19
6o76

41.67
44,76

38.10
36.76

178o10
176076

$ 337.33

$

$

Stapioy***

Coat o f
Othar
.w
.
______
f 5,S6lo66 $ 6 , M 3 » 3 4 $ 760.46
L o t* Hooolpta
■at Bxpanaa
6c902o78 7,763.43
9l0o73
L o t* Baealpta -l& SSh il
TTsS
Vat Satpona*

$

263o68
360o40
tuabar o f

loll
1.76

M onthly A r«rag*
T m t 1931
Yoor 1930
T otal ?a r*o n s« l
Zaesttia_______
Taar 1931
Taar 1930

Monthly A ra ra t*
T *a r 1931
Taar 1930




376.43
378.66
Total
;acpon*a
2,137o33
3 ,1 2 1 0 3

Othor
saaasi

M onthly A ro rag*
Vot fttpaaao 1931
Hot Sxpoaaa 1930
Ilo a t T oro*
T m t 1931
Taar 1930

T otal
M s> m *
4,617.06
4,643.66

33103

&qployoaa

160.00
160.00
iftnbor o f

Toar 1930

74.76
86.83

Othar

fiqployaaa S a la rla a
t A ia trib n la d
3,136.61
3,391o66

T otal
$ 3,136 61
3„391o66
177.33
263.64

177.33
363o64

Soabar of
QfflPfCft
.30
30

9.73

3 18,631.64
16,786.63

1 , 3 6 6 09 6
l,6 6 5 o 4 7

4P
>

isbisl asa

2 siLmnimJ ii m
2

BY ITOCTI088
( Klunoapolla Only)

function
General Overhead.
Officers
Snployeee
Provision of Space
aqployees
Provision of Personnel
Officers
. Employees
General Service
Officers ■
Soployees
Insurance
Officers
Saployees
Sailed Banks
Officers
Bosployeea
Loans,Rediscounts A Acceptances
Officers
Snployoes
Securities
Officers
Itaployees
Currency and Coin
Officers
Staployees
Chock Collection
Officers
Staployees
Non-Cash Collection
Officers
2
taployeee
Accounting
Officers
itaployees
Fiscal Agency
Officers
Staployeee
Auditing
Officers
Employees
Bank Halations
Officers
Snployees
federal Reserve Hote Issues
Officers
Z&aployees
Bank Examinations
Officers
Employees
Statistical and Analytical
Officers
Ssployeei
Total Officers
Total ^oployeee
Less Reimbursable$
Salaries
Officers
Staployees
Salaries Paid by Banks
Offieere
Steployees



December 310 1931
Am&mt
J ot
f f

December 31, 1930
Am
ount
P99

$ 3 912 61
425o07

2 15

2ol0

2 10

$ 3,912,74
425 15

21c 30

2c792o5l

22o82

2,945*20

o30
8o67

132o 51
915083

o30
9078

132*52
l9175o47

085
63095

356o70
7e774o29

cQ5
63092

356o73
7,871*75

olO
o
05

41067
8075

olO

41o67

o80
13044

679o22
3,028o47

,80

6c28

679o28
19517d89

lo
5c 30

895c90
19171o70

loOO
6.30

895c93
1,170.44

c?4
9o03

320o87
lc652o 81

lc34
9029

620o
92
lv720a26

c40
i8028

150o00
2,839o
‘"9

o60 i
17o50

360c00
3,035,15

o40
36030

176o 6
8
4 054o05

,40
40o17

176.70
4,490)03

o2
0
16o72

88o34
1 913091

o2
0
14078

88,35
1,880,81

065
12,60

395085
20159o67

065

12 85

395.88
2f187042
l

o91
lie 51

416*70
1c963p93

o91
10o 75

416o 74
1 ,88408
8

o60

8 00
c

333.35
1 498o60

.50
8o00

333o37
l,504o92

o55
lol5

320o87
323 38

o55
1015

320o
91
323.44

o21
*80

125o01
351o70

o80

c94
3*12

587o50
713*92

,94
2c93

o30
6a07
Ho 0
0
239,29

175o02
962,13
$ 93108.80
34,560.21

o91
5c0
0

416o70
813.50

.91
50
o 0

10o09
234c29

$ 80
692010
33,746071

llo 09
232,30

2d 5

.21

.

125002
291074
587o50
644.88

175.05
1.257.74
12.00 $ 9,609o36
34,307,16
237.30
o30
7o88

416.74
796.96
$

9 ,1 9 2 .6 2

33,510« 20

m m iu m

U a StO^ gn
tM

m

ja a u a a
1930

task

Average n » H r of offlcere
Salaries Officers
Average nvsber of eoployeea
Salaries employees
Director*1 aeetinge
Traveling expenses
Officers aad other dinners
Offloo supplies A Stationary
Tslephone and telegraph
Membership duos
Stenographic
All other

3.16

2C15

$ 46,960.03

$ 46,950,03
3c22

2o32
6,753c 60
6 667c 13
164.1B
184c66
700o84
4S4o63
950o00
310006
3,798*86

6,367.71
6,309.38
763,67
314,77
973,48
473,39
966.00
183,97
3,025,31

♦ 63,8650S7

$64,114,40

Supplies furnished Bomber Bank*
$
35,68
Publications
653076
Group, Chain and Branch Banking Coosdttee
2, 001a 2©
Pension Ooenittae
568o98
Mmeber Bank Beserve Committee
494,06

831.37
106,70

Total
All Othar

Total

3,743,77

I

Grand Total General Overhead Controllable $ 87,609.74

938.09

$ 85,053,47

m aaJttowaaBfl)
The following stsaaary of expenses for this function is self-explanatory,
Zt Shows the expenses over which the officers of the bank hare no direct control,
aa they are the result of established policies.

federal Heserve Currency;
Original cost, including shipping charges
Cost of redaction, inc. Shipping charges
Shipping chargee on currency to and frcn
member aad noa-aember banks
Shipping charges on coin to and fron banks
Cost of ehipnante Bead Office to Branch

$ 33,388.09
3,067.83

$ 63,686.13
4,346.46

38,034.86
9.641.99
161.33

30,873.39
9,356.95
638.67
4 97,668.50

$ 1,937.18
16,481,73
3,196.45

$ 3,334.03
18,603.91
683.86

$ 30,604.35

4 31„418.78

$ 3 3 ,4 1 6 .7 3

$ 1 1 9 ,0 0 6 .3 8

'

Total
Grand Total General Overhead ??oa»Controll&hle




1930

$ 61,813.38

Total

Governors*, federal Beserve Agents*
and federal Advisory Conferences
Federal Beserve Board axpensee
Shipping charges on securities

m .

48

cokmbaitys rannouL m ia u m t

aw ia man or om om , m a or w
m
nm
oum m mvosts
m
1931-1930

_________________( m m n w U * f t f l r ) ______________________

B B »W of Offlowt
AT«r»g« gartw Smloy.w
12 s __________ igap____ a a ______________ i§sa_
3o33
3.15
3.23
3.15
a . ai
33.43
6,81
o*0
o30
9.73
o85
64,13
63w35
c&6
5
0
*10
olO
o80
8.71
c80
6.14
loOO
loOO
6o37
6.30
.74
loOl
8o63
9.17
17 46
.40
o69
18.16
39.63
<4
>0
43.57
•40
• 20
o20
16o36
15.03
• 65
•66
13o66
13.97
10o91
*91
.91
11.46
o60
8.17
• 60
6c38
f55
065
1.30
loll
o
21
o79
,31
• 80
.94
o94
3 , 16
«
3.16
.30
5.99
• 30
6.03

Oeneral Orerhead- Controllable
Provision of Spacs
Provision of Personnel
General Sorrlos
Insurance
ZUllsd Banks
Loans, Rediscounts A -Acceptance*
Securities
Currency and Coin
Cheok Collections
Son-Cash CollsotIons
Accounting
Fiscal Agenoy
Auditing
iu«if Bslations
Federal Hessrvs Hots Zssuss
Bank laminations
Statistical and Analytical

Ho 00

11*46

3&pense
1931

337*06

338.89

Expense
1930

$ 67,600.74
83,416. 73
137,729<
>
74
16,631o64
93,772o45
29,436c 33
37B 039
443
67,960o0a
37,874050
24,621063
40,6746 71
71,196o45
26,680.71
38,877.02
37,801o 64
6,106o15
23,431o62
10,066o06
6,060*89
34,087.04
19 , 041o 23

$ 65,052.47
119,006c38
130p
900o83
18,785.63
88,763.14
31,834.80
36,343.98
47,638.63
37,393.35
38,303.35
46,808.64
77,873c 79
35,931c65
40,773.09
35,813.87
6,814.63
33,046.06
9e809p04
6,069. 64
33,798c 34
19,396.68

3 857.187.64

i 898.941,68

$ 830,436ol0
19,833,28
6,919.36

$ 885,997.84
18?054b 36
A M M *

sA 867ol87a64

* 898.941*68

Osnsral Overhead • Controllable
General Overhead • Hon-Controllable
Provision of Spans
Provision of Psrsonnsl
Osnsral Ssrvics
Postals
Znsuranos
Jailed Banks
Loans, Rediscounts & Acceptances
Securities
Currency and 0 oln
Cheek Collections
Hon-Cash Collections
Accounting
Piscnl Agency
Legal
Auditing
Bank Bslations
Federal Reserve Bote Issues
Bank hxaartnations
Statistical and Analytical

Total Ourrsnt ^ponses
Total Beinbnrs&ble Expenditures
Stock of Supplies




49

DISCOUNT QgEttATXONS
(Including Helena Branch)
Advances to member banks during 1931 totaled $50,393,000 as
compared to $88^319,000 during 1830o

Average d a il/ holdings of bills

discounted however, was $ 4 ?819y000 in comparison with $4,04 3,000 during
1930, so that our daily average showed an increase of §776,000,

Total

number of notes discounted daring 1S31 was 13,856 representing an in
crease o.f 3 760 in comparison with 1930
During 1931 we accommodated 366 different banks

This is the

greatest number of banks served in any year since 1937,
The following statement shows the number of banks accommodated
and the total advanced in each State during 1931 and 1930*
Number of Banks
accommodated
1930
1931
tfinne sota
83
'6f
39
47
North Dakota
63
49
South Dakota
41
40
Montana
19
Wisconsin
19
13
21
Michigan
234
Total
266

Amount discounted
(QGQ omitted)
1931
1930
§ 307513 $ 687928
5,378
5,715
13 9197
4,863
5,534
4 033
4 557
3,330
1.713
3 551
$ Se^zTS

The amount advanced to Minnesota members decreased $48,015^000
although there was an increase of 16 in the number of banks served.

In

North Dakota there was a decrease of $337^000 in the amount advanced
with 8 fewer banks served,

In South Dakota there was an increase of 14

in number of banks served and an increase of $ 7 ,3 3 5 t000 in the amount ad
vancedo

One more bank was accommodated in Montana during the year as

compared to 1930 and the amount advanced increased Jl^SOl^OOOo

The same

number of banks in 7/isconsin borrowed from us but the amount advanced in
creased $ 3 ,3 3 7 ,000>

In Michigan 9 additional banks were accommodated,

but the amount advanced decreased $B38k000i>

Altogether 33 more banks

borrowed from us during 1931 than in 1930 and the amount advanced was
$ 3 8,0 3 7 ,0 0 0 less than the advances made during 1930-

The demand for

the most part was occasioned by adverse economic conditions rather
than to meet normal business needs*
Open market purchases of acceptances amounted to $59 535,000
as compared to §70,396 000 including $5 035,000 purchased from other
Federal Reserve Banks during 1930,

The amount purchased during 1931

includes $3,09 7,476 bought from Twin City Banks

Our average daily

holdings of b ills purchased amounted to $7,60 7,000 during 1931 in
comparison with & 7 ,870,000 during the previous year*



gim m
Month

S n b r of Ebnlai
ta a e
Served
1331_______1232___

January
9*
Tebrnary
6k
Hurch
V*
April
69
*yr
87
Jta e
n
109
July
9»
Aogoit
90
Septaster
88
October
Soveabar
3
Daoeatoer
.J09 .
I M i r different
266

122SL

94
70
88
90
107
96
107
70
57
95
93
101

6?
64
75
104
133
133
121
74
65
95
110
__JEL .
S5

234

249

m m m ,M m ®
B a t o r o f I to ss
U lM lT C t
1931
mo
1312.

705
318
573
1,153
1.5*2
1,590
897

U .0 9 6

«

g
1,191
1.115
.23a

1.047
583
87b
770
969
1,424
885
877
1.230
2.281
1,297
_____ 1.617
13.856

ta n a t S iU iw n U i
000 O a ltta d
i23i_______ i93o
iqgq

2.406
l3.kO
8|2^h
,JL »I

11,238

2 .6 7 6

1,785
2 .1 3 s
1.680
2.796
3,0 0 2
2 ,5 1 5
2 .19 0

$ 50.292

$ 32.408
7.5*3
5.353
10,87*
5.517
6.567
3.396
1,892
2,263
5,723
2.762
jJtn...

$ 48,870
41,352
62,295
137.*99
55.7*1
59,381
97.191
107.529
123.923
124.188
9 6 .6 0 1

..SL837

$ 88,319^1,035.24?

TOMMB 0T ESM8000OTB
Minnesota
Stacker p ie o o s
discounted

1931

1930

1929
1928
l<
i$
1925
1924

1923
1922
fetal u m ( 1931
fedlsoouated 1950
1929
1928
1927




192b
1925

192$
1923
1922

~ ip*a —
2.553
4.727
19.837
2.930
5.006
»o385
8.928
10,204
13.695

forth
2,636
2.59^
2.008
2.555

5.504

US
Minnesota

$ 20 912, 698,23
,
6b .927.462.J8
1,002,174,830.46
610,175 , 325.50
124.488.538.05
203.958.580.27

.903. 570. 1s
.093,222.03
2^ . 202.377.65
97 . 456.500.97
2

South

M a&L
2.278

-t kmo ftyr.
m t\ an ,
Si .

37750

2,908
1.75^

3.'
3.1
7.459
8.5W
11 014

M tt—
M

Jiisaaeia.
1.061

220

206
140
267

M lt A
■SfT i oITn J
■giT Ji U
Tfyi a
370
127

154
126
138
‘i
136
92

-fetal,

13.856
U .096
11.23*
23.742
10,040
12.514
11,492
27.413
.392
>7,933

210
9.501
977
14.*03
1,750
478
Jferth Dripto .. . South Patota
.
W w oM la
Michigan
Total
* 5377 . 637.75 * 12.197.074.W
.w~.ll * k.557.039.83 * 1 . 713. 19*.27 $50,292,248.60
5.715.117.80
4.033.1
033
4,861,818.08 * T - . 193.40
2,230.165.12
2 . 550.968.26
88.318,725.64
6.843.982.1Q ' 3.820,797.30
1 1 . 590.966.86
5.350.693.53
5>**®5.736,27 1.035.247.006.85
1.960.576.06
. 4.913.018.90
2 . 542. 159.60
2 . 615.000.00
3.152.317.3*
fe5.358.397.»i4
4,720.293.29
6.013.983.3*
2 .088.477.69
1 .902,915.72
1.817.014.42
141.031.222.55
4,913. 712.19
6,4u .o 6ot36
2.108,395.56
2.427,638.6s
2. 069, 500.00
221 888 887.06
3.425.108.34
8,323,€49.44
2.7l5.*T0.4l
1,792.111.93
2.214,193.91
92.374,604.21
12.039.840.01 13.450,287.56
7.472.950.36
1,228,878.58
2.079.395.33
100,354,573.*7
I9.591.9ta.l9 14,272,082.70
17.997.317.38
3.5*0.630.40
2 ,407, 577.24
290.051.926.56
20.7H.013.06 27.885.394.4i
28.370.089.12 10 .352.8U . 38
8.I 8I . 334.45
193.014. 143.39

8

. .

SMMSBT.Of BILLS 11Bi^i fJS
S,< ■ SS7> »mm FQHCHA8SD
i, » Kb
ii
TT
i SgVi iL
i
tn

P«p*r wm»ttl IB tht ?P«a k*rk*t
1930

m
Bobbor of
BUM—

frmny

4 1,999,333000

61
199
633
469
476
301
76
183
1,103
1,489

Fobrtiar^'
Maroh
April

1*7

Jiao
July
ABfoat
Soptaabar
Octobor
Boroabor
Dtotabor

Baabar of
ftlaqpB .

iBDttl

*6
711
308
437
300
337
449
373
366
855
163

1,904,067c63
6,403,441c 38
6,968,669087
4,449,833.16
3,160.183.80
374,037.63
3,636,311.38
ia.638r033.88
16,603,743.66
89.80B.71
, f 313.633.16
| » . 636,864.90

6
386

6,138

..asaont
$ 6,639,630o
49

11,103,046o
69
6,306,316o
08
7.343,013o00
4,660,051a16
3,317,188c03
6,733,695*07
4 ,634,664c03
3,766,nSo47
4s4l3,798o71
3,413,067.76
, 8.369*709.66
i 68,371,097.03

W ,

4,373

Papar w aohaaad f t a i other M i M l H f f r r t V ft ff
T har* M r * m jraroh a**s o f paper fro o other ?*d *ra X B e *e rr* B asks d u rin g
1931 aad d u rin g U 8 0 182 p lo ee * M r * pwreha»*d fo r a to t a l o f $6,028,078,,*6,
oommbathb STigaww a o c
a r tiw tommb or wag
waaaa or awomig. aaaaisg. asp apsgggs o? mass, bsmsoqtots

(^ S B o a p o X li Only)
Bashar o f
lo t o i Hodlaooostad

933
675

1,789
1,371

6,744
3,364

6,138
4,634

66
64

330
68

148
116

663
373

437
377

1.00 $ 10#
760o00
1.00
10,760a 00

ATora^o
Toar 1931
Toat 1930




Ba»bor o f
ploQoa o f
papar

3,961
703

Boabor of Offloora’
Gffioara . Salarioa
.
Toar 1931
Toar 1930

Ttmbar o f
Sotos
Babatod

90o o f Botoa
rooolvod aa
o o lla t a ra l to

783
663

Toar 1931 11,078
Taar 1930
8,103

Monthly
AT«r0«0
Toar 19a
Toar 1960

S ta to r ot Bo* o f votoa
O o lla to ra l roooivod aa
So to s d l* - o o lla to ra l to

$

895c83
896 83

J&plojrooa »
Salariaa

Bunbor of
taloir*aa
6.37
6o30

Othor
*otal
. .SMoaoa . 3*s>oa»o
.
.

$ 13,660o 86
13,483b63

$ 3,473066 $ 37,874.80

$

$

1,137067
l,133o64

3 ,069o83

37,293.36

389o
47
354 99

$ 8,833.87
3,374.36

52

COE BNS
L SD AK
At the close of business December 31* 1930, the unpaid lia ­
bility of 52 suspended member banks to us was #555,130ol3^

During the

year 1931 member banks to the number of 47 suspended, and of these 8
were not indebted to us on account of rediscounts>
In addition to this number the First National Bank of Scranton,
North Dakota, consolidated on March 3 f 1931, with the Bank of acranton,
a state non^member bank, which latter bank at consolidation assumed lia
bility of the member bank to us on account of rediscounts in the sum of
$44,653 00*

Late last fall the Bank of 3cranton suspended with this lia

bility only partially reduced,

It is now in process of reopening

The remaining 39 member and one non^member bank added
# 1 ,6 8 4 ,5 3 6 .9 6 in lia b ilitie s, making a total of #3,339,657e08«
Total collections from all sources during 1931 amounted to
<911-981-26*

Of this amount $877P257065 was applied to reduce the direct

liability of the suspended bank6,leaving a net balance due from these
bankB of } 1 , 3 6 2,39 9 ,43 , at the close of the year 1931*

Of this latter

amount the remaining lia b ilities of 11 banks totaling #156^053^37 has
heretofore been charged against the special reserve set up for lossese
Names 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*
bn December 31* 1931, the number of banks on our closed list
indebted to us was 7^ including the 11 banks just referred to whose
liability has heretofore been charged against the special reserve.
As security to the liabilities of the 66 banks on our closed
list not yet paid or charged off amounting to $ 1 ,3 0 6 ,347o06P we hold
$ 3 , 3755958a78 in notes*

In addition we still retain paper classified

as worthless in the sum of $173,050.,71<,

This paper is collateral from

the banks whose indebtedness to us has been charged off*
Up to the close of 1931, 346 member banks and the one non
member above mentioned had closed

with total liab ilities to us at

date of suspension of $15,397 839,03*

Of this amount, we have re

ceived payments aggregating $1 5 ,0 3 5 ,4 2 9 .6 0 , including full liquidation




C u S BNS (C n )
L b P AK o td
of original liability due us from 370 banks, and there remains now
due only the sum of $1,362*399?43, as above indicated*

In addition,

we have received $348^381*56 interest and $377,793o08 in reduction of
our collection expense

Unpaid collection expense accumulated as of

December 31, 1931, amounted to $367a017c05*

During the past year

$ 2 S231*81 wap credited as recovery of expense* $14,3 01,63 as interest
collected from these closed banks, and $195.16 interest on other a d>
vances made to protect our interests)
In addition to the recoveries mentioned^ we collected during
1931 in certain accounts $34>085o69 over the original liability due
us at date of suspension from these suspended banks and now have in
this account $ 7 3 ,9 8 8 d 4 P which eventually will apply as recovery of
interest and/or collection expense*
The average number of employees on this work during 1931 was
8o71 and in 1930* 6ol4-

An average of *80 officers1 time was allocat
’

ed to this function in 1931 as compared with the eame percentage in
1930-

Estimated expenses for 1932 show an increase over the 1931

actual expense*

The salaries and traveling expenses of employees for

1933 have been estimated at $9,959*00 greater than the 1931 expense
COMPARATIVE FUNCTIONAL EXPENSE
$ 6,l50o04
Salaries < Officers
»
33,800*72
33,800*73
Salaries - Employees
10,751.02
Traveling expense
10,751*02
1 ,058.58
Printing, Stationery & Office Supplies
1,056.58
Telephone and Telegraph
410*47
8 365=48
Legal fees
5.735*77
All Other

$

8,150*03
17,369,36
6 .972,13
181,35
308*97
10,475,45
4 0381 34

$ 5?,960 08
Average number of officers
Average number of employees




$ 47.636 63

*80

*80

8,71

6.14

CURRENC]f AND CQIfl FUNCTION
There was a more steady trend in currency operations
during 1331 than in the previous year0

In 1931 after January, with

one exception, the number of currency shipments made by us exceed­
ed the incoming shipments with total of outgoing shipments exceed
ing the incoming shipments by 2,783

For the first seven months

of 1930 shipments received were greater in number than shipments
dispatched,

With the exception of October, the remaining months of

the year showed an excess of outgoing packages®

For the complete

year 193G we received 17,903 shipments and sent out 17.433„ Al­
though there was the usual seasonal trend, it was not as evident as
in former years*

For the past 1? months the demand from country

banks has been consistent,
During 1931 we shipped 1191,685,000 compared to $199,033,000
in the previous year*

The excese of 1930 was practically all in the

first six monthso ■The shipments sent in 1931 exceeded by $7,931^.000
the total receipts.

For 1930 the total receipts were $324 944,000

and $25,9 17,000 more than the currency sent members,

The amount of

currency drawn from us during the oast year was greater than the
amount deposited for the first year since 1925o

It is quite likely

that with returning confidence the deposits of currency with us will
exceed the withdrawals during 1933e
Less coin was received from and shipped to member banks than
in I930o

Receipte of {3 ,7 4 6 ,0 0 0 were £404^000 under the 1930 receipts

and the shipments of # 2,904,000 in 1931 were exceeded by $306,000
in 1830^

Banks had sent in most of their excess coin during 1930

so it was to be expected the volume would fall off In 1331 o

In addi««

tion to the above totals, we shipped out 41,300,000 in standard silver
dollarsP 1 1,000,000 going to the Denver Ii n t c

Of this amount $510,000

had been held for the Treasury Department^ as cover for silver certi­
ficates,

As we needed space this amount and $490,000 additional

wae sent the Mint,




The balance of the standards shipped went, to

CUBKENCY AND COIM FUNCTION
Helena and branches of the San Francisco bankc

(Contd)
»fe also shipped

Helena $ 3 P93S,000 in currenrcyo
At the close of the year we held $1^4-34^000 in silver
and minor coin at Head Office and $201p400 at Helen&o

Bar gold to

the amount of $76,000 was also held here

m m

Received
from
Twin Cltr

January
February
March
April
May
Jtme
July
Augost
September
October
November
December
Totals

g j m t n L m u m **
TO ifB
ISffiB A8D VQB~I£SHBER 3AJSXS DTJBIBG 1931
(Minneapolis Only)

Shipped Received Shipped Received Shipped Total Io0
to
from
To
Troni
To
Shipments
Eemhere Other Manner Bka0 ffon»Member Banks received

208
164
306
191
193
215
187
186
194
302
176
214

131
133
154
146
148
149
139
149
173
166
124
156

3,336

1,768

1,234
866
842
986
1,092
1,267
1,004
980
1,074
856
1*032

814
957
1,296
1,201
1,133
1P371
1,177
lv 573
1,559
1,541
1,236
liftV

3
1
I
0
0
2
0
0
0
2
0
1

12,219

15,561

10

m

1*445
1,031
1,049
1,177
1,179
19309
1,454
1,190
1,174
1,278
1,032
1.247

946
1,090
1,451
1,347
1,281
1,520
1,316
1,726
1,733
1,711
1,413
~JLJ14

14,565

170343

1
0
1
0
0
0
0
4
1.
4
3 ■
:
19

C0I5 R2CSIVSD ygOM ASP SHIPP3D TO M I J S D
Minneapolis and Helena 1931

mum.
January $
February
March
April
May
Jnne
July
August
September
October
November
December

480,074
246*876
244,154
168,403
2 3 9 ,4 6 8
2 1 8 ,0 4 1
3 2 9 ,5 0 9
2 7 8 ,8 5 5
2 8 9 ,7 0 8
3 5 4 ,6 6 9
2 6 2 ,8 3 7
231a 7 2 8

Totals $ 3 ,334t322




$

$ 566,428
275,080
3S4e343
192,348

86B354
2 9 ,304

30f189
t
2 3 ,9 4 5
2 3 ,3 3 7
2 6 , 678
4 2 ,8 9 1
2 6 ,0 7 4
5 0 ,4 3 0
2 5 ,5 4 8
1 7 ,7 2 7

liinaeapolla
$

81,630
104,345
2140966
206,836

3 5 2 ,8 0 5
2 4 4 ,7 1 9
3 7 2 ,4 0 0
3 0 4 ,9 2 9
3 4 0 ,1 3 8
3 8 0 ,2 1 7
2 8 0 ,5 6 4
27 1 4 7 5

33,747
$ 4 1 3 ,1 2 4

BAggS

agfysp

Helena______ Combined

Minneapolis

Total HOo
Shipment*
Seat

$

2 0 6 ,5 5 0
2 6 1 ,3 4 0
2 6 8 ,6 1 2
2 3 3 ,4 0 3
2 4 3 ,5 1 5
1 8 1 ,9 4 0
1 5 6 ,5 0 5

3 ,7 4 6 ,4 4 6

$ 2t349,449

189 308

B
jelsm

Combined

$ 10 * S 0 4 92,310
18,330
122,565
250,335
3 5 ,2 7 0
4 S 016D
4 8 ,3 8 5
4 8 ,7 2 5
5 1 ,4 9 5
1 0 2 ,9 3 5
4 7 C1 6 0
4 7 ,2 2 0
67 c4 3 0
3 2 .6 9 0

3 3 0 ,0 0 1
3 5 4 ,9 3 5
3 1 1 ,0 6 5
3 3 0 ,1 0 7
336,. 3 3 *
3 9 0 ,6 7 5
2 2 9 ,1 6 0
3 3 3 ,9 3 6
2 2 2 ,4 9 8

$ 554,375$3,903,834

CS8HS3CT BaSII?T3 Z80K ^

SHTHm
at78 TO ggfflSB ASP BOK-StaBBS BiBES ST MOBgB

BBBft asBHi ifli g n a m a a s m s b b b a a e a
HaOMWS
Jrcm
Tram
Total Heoeipts
Jotal Baoalpt*
aafc*____________ 1931
___________............. .
1S5SSLSS&5_______ Hoa^MwibT B
January $ 17 523,592
February 13 4960954
March
13,388,458
14 741 886
April
14c405, 036
Mu
150701c251
June
July
160037p
902
130829,965
Auguet
Sept saber 150645, 036
October
16.0440197
lovember 13, 6680633
December 16,601.993
Total $ 181a174,905
1930
1929
1928
1927
1926
1925
1924
1923
1022
1921
1920

$ 232-220s490
224,972,795
199,261,798
194,920,928
186»485,481
172,959,062
150,445,955
147,391,375
113,325,000
132,789,000
64,332,000

$ 203,970
186, 887
164,241
162,823
16J,319
1860717
261,266
267,099
222,969
263,240
221,786
- m .4 8 9
$ 2,589,806

$

17*737,562
13,683,841
13,552,699
14,904,709
14,570,355
15,887,968
16,299,168
14,097,064
15,868,007
16,307,437
13,890,419
16.975.482
f 183,764,711

$ 2,723,885
3,127o014
3,363,066
3,185,426
3,170,964
237,271
248,655
132,610
131,000
249,000
528,000

$ 21,732,132 .
17,065,440
19,153,324
30,064,627
19,386,957
17,635,748
21,015,166
17,103,393
17,687,943
19,930,546
15,454,680
.1JxZ ^ 4 1 3
$ 224,944,375

$ 324,944,375
228,099,809
202,6 4 >864
2<
198,106,354
189,656,445
173,196,333
150,694,610
147,723,985
113,456,000
133,038,000
64,860,000

SHIPffiiTS
To
Member Sank*
January $
February
March
April
May
June
July
August
September
October
ffovember
December
Total $
1930
1929
1928
1927
1926
1925
1924
1923
1922
1921
1920

11,777,460
11,990*829
14,763,841
14,341,657
15,523,158
16,975,101
15,512,830
17,525,993
17,699,400
21,008,925
14,510,918
17,609*230
189,239,342

$ 195,857,109
193,059,577
186,530,926
189,256,743
184,703,348
171,141,273
171,166,734
137,867,840
105,117,000
89,296,000
78,616,000




To
lon-Member Banka

1931
Total Shipment•

$

120,121
98,732
171,124
189,064
132,800
187,050
198,800
215,081
263,560
337,668
304,363
x 3270
309
$ 2,445,672

$

$ 3,170,874
4,773,470
2,881,674
2,799,269
2,370,230
3,172,170
1,383,269
2,753,003
2,047,000
1,020,000
380,000

1930
Total Shipment»
$ 11,888,674
15,200,534
17,051,887
15,431,489
16,978,411
15,795,744
15,387,136
18,338,393
17,933,342
16,675,910
15,484,576
... 22.971.88?
$ 199,027,983

$ 199,027,983
197,833,047
189,412,600
192,056.012
187,073,578
173,313,443
172,550,003
140,630,843
107,164,000
90,316,000
78,996,000

11,897,581
12,089,561
14,934,965
14,530,721
15,655,958
17,162,151
15,711,630
17,741,074
17,962,960
21,346,593
14,816,281
17,836.539
$ 191,685,014

57

M M f f lB J M

j B

9 ? QTOBPOT

S O iH amass or ynoas aaraiap.
Bw Q

M

c g ff iW p c g

w
sam o> aamtro. turns*

m
assas 19 3 1-19 3 0

(Minneapolis 0nly)

m m m &m
Taar 1931
Taar 1930

Officers
salaries
$ 1,800.00
3,333,81

Monthly Average
Taar 1931
Tear 1930

Other
aroenaa.. .
8 4.99
348,46

Total
Ss&saee...
8 1,804,99
3,473.37

8

Eanfoer of
Officere
o
40
059

$

8

150 00
368.90

,43
30,64

180.43
389.44

SfOfiZlM.frt.

Taar 1931
Tear 1930

Othar
Bfflwa*
8 1,338,13
1,706,81

Total
BffiW»a*. .
8 30,383,63
33,036.07

8

8 1,698,85
1,918.84

ikiplogreea
Salaries
$ 10.500,57
U , 813,46

Othar
Saenaa
8 3,330,31
3,340,38

$

Monthly Average
Tear 1931
Tear 1930

aiployee*
Salariaa
8 19,144,40
31,330,36
8 1,895,37
1,776,69

Swaber of
Sotploree*
Uo56
I3d 3

$

103,18
143,16

£K£MaZh4L.Qti3K

Tear 1931
Tear 1930

taber of
asoloyeea
4«34
4075

Monthly Average
Tear 19a
Tear 1930

875,06
984,46

369,19
378,36

Total
S®#»ae
8 13,730,88
15,153,84
■
8

1,144,34
1,363.83

Coin

W m x of
v br
Tm t 1931
Tm t 1930

?«Bl«yee*
1,66
1,38

Monthly Average
Taar 1931
Tear 1930

Tear 1931
Tm t 1930
Monthly Am tgi
Tear 1931
Tear 1930




Jtaplayeea
. ....... Salarlaa
.
8 3.383,00
3,617,18
$

373,60
318,10

Vtnber of Bills
Received and
Cgnated
--- s
&SBEL
3 3,37 3,7 0 0 *1 7 1 ,1 7 5 .0 0 0
43,80S, 360
213,809,000
3,001,068
3,667,113

8 14,366,000
17,741,000

Othar
teasaa
8 1,474.31
3,638,33

Total
J$raaaaa .
8 4,756,31
8,156.48

$

8

133.86
311.63

398.36
439.83

Kaabar of Coins
Received and
JSZB B M ------------- --

30,681,336
18,066,018
10733,447
1,604,736

$ 3,699,403
4,367,349

$

308,383
363,946

58

8 E 0 U R I T I S S FUNCTION
( M inne a p o 1 i s O n ly )

In a d d it io n
B ills

to

the

sec u rities

P a y a b le and r e d is c o u n t s ,

accounts,

and as c o l l a t e r a l

t h i s d e p a r tm e n t h a n d l e s

member b a n k s

fo r

sp e c ia l dep o sits*

sa fe k e e p in g

w h ic h we h o l d a s c o l l a t e r a l

all

s e c u r it ie s pled ged

a r e c l i p p e d from

e n t e r e d f o r c o l l e c t i o n and c r e d i t

to

or, upon req u est,

sent d ire c t

T h ese

the c o u p o n s a r e

to s e c u r e

s e c u r itie s

and

the ow ning member b a n k ss a c c o u n t
to

th e member Tpank*

f a c i l i t i e s h a v e b e e n w i d e l y u s e d a n d a p p r e c i a t e d by

o u r member b a n k s

d u rin g

A c o m p a r a t iv e

the p a s t

fe w y e a r s *

statem ent of

o u r c u s t o d y a s c o l l a t e r a l or fo r
Decem ber

to W ar L o an D e p o s it

s e c u r i t i e s d e p o s i t e d w i t h u s by

in clu d in g

M a t u r i n g coupons

to

the amount o f

sa fe k e e p in g

se c u ritie s h e ld

on Decem ber

in

31? 1931 a n d

31, 1930 i s g i v e n belo w s
C o llateral
C ollateral

to W ar L o an D e p o s i t s
to B i l l e P a y a b l e a n d

Kedi6C0unt6
Securities held for safekeeplngo
UoSo Government securities
Miscellaneous securities
Pledged securities

1931
$11,88'3,850

1930
$ 4 /isS ’, 000

973,500

493^835

17,809,800
77,730,933
37,315,211

39,032^175
83,307*393
300374,969

The amount of securities held in our custody showed consider­
able fluctuation throughout the year*

The total amount, held varied from

$145,773,00 0 at the end of February to $161,013,000 on September 30*
From September 30 until the end of the year deliveries exceeded re­
ceipts by approximately #15,363,000
The number of pieces received during the year was 57
compared to 73,303 during 1930 or a decrease of 15,543 in number of
pieces received as compared to receipts during 1930*

On the other

hand number of pieces delivered was 30,133 compared to 45,193 during
1930 representing an increase in number of items delivered of ap*
proximately 15,000 pieces*
Maturing coupons clipped from securities held in our custody
numbered 319,249 in comparison with 188^715 coupons clipped during 1930*
A comparative statement of the number of employees and costs
of operating the several units of this department is given below:
fs e m m r * t u m m * smbmmsb
1931-1930
IMMKMBATUB
0P3BATI0B3 AHD E3CCBP3
TASK) OTSTTOT
Bo. Offloara
Total
So. at
Total
So. of
Total
Orand Total
A SaployaoQ
Bw m
5taploy«o» B a w w ... amlflgBas___aaaest- 3 sagg»s_____
Tsar 1931 .74 * 3,850.77
5 7 5 ? $ 13,311.31
SToe $ 8,359.66 $ 34,631.33
Tear 1930 1.01
6,130.34
6.34
11,664.29
3.93
10,50V.62
33,303.29



RSMRVE POSITION
The reserve fluctuations were more marked during 1931 than
in 1930 with the highest reserve carried during the two years in
February 1930o

After the first four months of 19.30 the increased

volume of United States securities held in System Account resulted
in our excess reserves being materially reduced,

Before these in­

vestments were increased, our reserve against notes and deposits com
bined was 80-1 on February 3 y 1930o

This reserve did not fall be­

low S" during 1930 but with additional participation In 3ov enments
during ISftl* our reserve percentage wa* further reduced
Throughout 1931 the amount of our free gold was quite small
and with falling deposits and other borrowing demand in the last
quarter of the year, we were forced for a short time to dispose of
some of our United States securities®
$68*670*000 on December 31* 1930 to

Total reserves increased from
908 /000 at the close of 1932a

Total deposits were practically the same at the close of
1930 and 1931* a loss of 43*600,000 in member bank deposits during the
past year being offset by an increase of $700*000 in the Treasury
balance and $ 1 9700^000 in foreign bank balances.

Our outstanding Fed­

eral reserve notes increatcd $15,600,000 since the end of 1930* part
of which was covered by an increase in discounts but the major portico
of this expansion was covered by transfers of funds from other
Districts which augmented the Gold Funds of the Agent and the dan*
Our reserves after falling to 4809 per cent on Ootobei 15 y
nave strengthened and were 6701 per cent on December 31o
centage was never in excess of ?4 during the yearc

Reeer * • per
*

Average depos■
ts

of member banks were lower for every month in 1931 thar in 1930 *ith
a daily average of $48^050,000 in 1931 and $51,336^000 in 1930

Com
-

bined deposits of member banks at Minneapolis and Helena averaged in
excess of $50,0 00,000 for only two months of the yeart Aoril and June.
During 1930 August was the only month to fall below this amount*
Member bank balances in all the States comprising our Diatricts show
gradual reductions since 13S9




60

DAILY ATSRAfl* u m ra BigK B
gSEETC BALA3TC3 BT MONTHS
B
Minneapolis and Helena, Combined
January
February
March
April
May
Jtme
July
Angaet
September
October
Koveaber
December

1930
$ 51,291,000
50,477,000
51,825,000
51,281,000
50,898,000
51,819,000
50,423,000
49,650,000
51,258,000
51,620,000
52,275,000
51,888,000

iSSk

$ 49,028,000
47,517,000
48,874,000
50,027,000
48,648,000
50,693,000
49,278,000
47,600,000
47,556,000
46,382,000
45,878,000
45,125,000

Daily Average Member Bank Balances, Minneapolis and Helena 1921
1920
1929
1938
1927
1926
1925
1924
1923
1922
1921
m m *

b isk

$ 48,050,000
51,2-25,000
52.562.000
53.347.000
50.650.000
50.670.000
53.076.000
49.600.000
47.813.000
44.451.000
41.535.000

xm B Ji balahcb gLwmTXQgs
LCf

Minneapolis Only April 30, 1931
Helena Only
Septo 1» 1931
April 30, 1931
Combined
Sot. 6, 1930
Combined
Combined
Dec, 16, 1929
Combined
Bov. 9, 1928
Bov* 15, 1927
Combined
Jano 12, 1926
Combined

Michigan
Minnesota
Montana
Ho0 Dakota
SO Dakota
o
Wisconsin

Minneapolis Only Dec<>21,1931 $37,760,064
Helena Only
Bov, 3,1931
4,697,200
Combined
Dec<>21,1931 43,219,706
Combined
Aog* 5,1930 45,355,000
Combined
June 11,1929 46,810,559
Combined
J n o 7, 1928 48,493,619
ig
Combined
Kay 31,1927 42,606,090
Combined
Jtme 3,1926 45,505,455

COMFiRISQI OF MSMBZB BMK m
SSRTE BALA3C38
AS QT DSG PCgg: 31 1931-1930-1929-1928-1927
(Ihonsands only, 000 omitted)
1930
1929
1931
1928
1927
$ 2.600
$ 3,673
$ 2,743
$ 3,859
$ 3,128
30,152
30,616
36,651
34,337
34,679
5,608
5,587
7,354
7 496
7,063
3, SOS
2,807
3,794
4,235
4,292
3,629
2,955
■ 3,998
4,092
3,917
.. Sa«7.
__3.319
. 9,331
......JLSS2L
$ 45,827 K $ 48,447 U $ 56,861 M $56,067 X $ 54,734 1
1
'

Total ?«a»lti«* for 1931
Mem
ber of Banks Penalised
Maximal Penalty Hate




$57,359,528
6,575,069
62,601,178
56,8^4,000
59,412,090
60,105,103
61,758,745
56,686,133

PSnCIM T BUggRTS! PBiAM»I38 .

Minneapolis 1831
$6,785c 76
278 .
&i%

Helena 1931
$ 940,00
25
5&&

Combined 1931
$ 7c725o73
304
5&

Coabllned 19oO
370344o01
248

61

um sm sm a hsld «rBgga 31. i95X

U«

s«

S®ffoplties

held in Investment

accounts

Interest

M atu rity

_ _
_

1933-1938
1944-1954
1941-1943
1946-1949
1940-1943
1951-1965
1946
1947
1961

Sbrsrth Liberty Loan Sonde
U„ S0 Treasury Bonds
n «
n
«
nn
#
n
H 5
5
t
t
N
h n
t
i
t
t
To S Coanrersion Boaas
J o
MR
B
H
t „ S Panama Bonds
J o
Total O O O O P O O O

O

O

O

O

O

O

O

jsaaal

R ate

O

4%$
4
3 3/8
3 1/8
3 3/8
3
3
3
3

O

O

O

$ 3C
327tOOOe00
165,900c00
2,452,700,. 00
1,757,050c00
9 ,450c00
235,300c 00
3 ,300c00
111 , 600c00
500„00

O

$ 7,062, TOOoOO

O

Investment for self-insurance reserves
Fourth Liberty Loan Bonds
U S Treasury Bonds
o o
• «
»
5
3
B
n H
a
u
T o ta l

oooooooooooo

1933>1936
1941-1943
1946*1949
1951.1955
0

0

0

0

0

4$
3 3/8
3 1/8
3
0

0

0

Grand T o tal Uo

00

So S e c u r it ie s 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Federal In te rm e d iate C re d it Bank D eb en tu re*

Jfcnlolpal Warrants




000

o

o

100, 000c00
300,000c00
SO,000c00
140,000.00

o oo o

DooodQoooQooooooooo

1

500,000c00

$

0

Uo So S e c u r it ie s e o ld and h e l d p e n d in g f i n a l payment

P a r t ic ip a t io n i n F ed eral R eserve System
0 0 0 0 0 0 0 0
S p e c ia l Investm ent Account

$

102,472.30

$ 30,003,000c00
$ 27t668,172c30
$

430.000 00

$

473,545,45

62

TRANSFER AND C O D IN G DEPARTMENT
( M in n e a p o lis O n ly )

D uring

1931

the volum e o f t r a n s f e r s h a n d l e d d e c r e a s e d i n

num ber a n d amount as co m p ared to 1 9 3 0 *
4 5 ,2 1 9

tran sfers

a m o un tin g

t r a n s a c t i o n s and
transfers

to # 2 9 3 7 4 , 4 7 3 , 0 0 0 ,

# 8 1 5 ,4 8 0 * 0 0 0

i n c o m p a r is o n

th is u n it h andled

a decrease

o f 8 P9 4 4

to 1 9 3 0 w i t h 5 4 , 1 6 3

t o t a l i n g # 3 ,1 8 9 ^ 9 5 3 ^ 0 0 0 0
Tran sfers h an d le d ,

other

d e m p t io n

Fund o f N a t i o n a l B a n k s ,

the

to tals

1930

In 1931

of 3 9 ,5 5 5

than f o r

decreased

tran sfers

the F i r e P e r C ent Re­
i n num ber a n d am ount from

to ta lin g

$ 3 ,1 7 3 ,1 8 1 ,0 0 0

to 3 3 , 4 7 3

t r a n s a c t i o n s a m o u n t in g to # 2 , 3 6 3 94 5 6 ; 0 0 0 ^
F i r e P e r G e n t R e d e m p tio n Fund
N a tio n a l

BankB h a n d l e d d u r i n g 1 9 3 1 w er e 1 2 , 7 4 6

#11,, 0 1 7 , 0 0 0

a n d i n 1 9 3 0 were. 1 4 , 6 0 8

The b e l o w
an d o u t g o i n g w i r e
fu n c tio n fo r
Y ear

tab le

the y e a r s

to taled 1 7 ,1 7 8

i n d i c a t i n g v olum e a n d amount o f

1925

of

of

in c o m in g

the a c c o u n t i n g

th ro u g h 1 9 3 1 0

T ran sfers
Amount
6 1 7 i'BMT 0 0 0
9 0 5 ,3 8 4 000
7 6 7 ,5 3 3 .0 0 0
7 0 5 ,0 4 1 ,0 0 0
6 7 0 ,6 4 9 - 0 0 0
6 0 9 ,6 9 5 ,0 0 0
6 9 6 ,0 9 3 ,0 0 0

and

th e a c c o u n t

a m o u n tin g to # 1 6 . 7 7 3 90 0 0 *

In c o m in g W ir e T r a n s f e r s
Number
Amount •
1 3 ,1 1 0
$ 1 (3 8^, 525^000
1 6 ,3 9 7
1 663 5 4 6 ,0 0 0
30*030
1 5 6 6 ,3 3 1 ,0 0 0
1 8 ,9 3 1
1 ,5 4 5 ,0 1 8 ,0 0 0
1 6 ,6 2 4
1 ,4 3 8 ,5 7 6 ,0 0 0
1 6 ,8 3 9
1 ,3 8 1 ,1 7 4 ,0 0 0
1 4 ,9 3 6
1 ,3 7 6 ,8 9 4 ,0 0 0

M e s s a g e s c o d e d and d e c o d e d ,
1931

fo r

i n num ber t o t a l i n g

t r a n s f e r s h a n d l e d by t h i s u n i t

O u t g o in g W ir e
Number
“ § ",4 9 3
#
1 1 ,0 4 4
1 3 ,6 3 4
1 1 f9 0 8
1 1 ,1 1 5
1 0 ,1 7 4
1 0 ,5 1 7

1931
1930
1939
1938
1937
1936
1935

tran sfers

o t h e r th a n t r a n s f e r s ,

in 1 9 3 0 1 7 ,3 9 6

or 7 4 8

d u rin g

le s s m essages in

1931*

TELEGRAPH U N IT
For the y e a r 1 9 3 1
w ires
in

c h argeab le

to t h i s

t h e num ber o f w o r d s

w ire

tran sfers h an d led ,

Board

in c r e a s e d because

more d e t a i l e d

and

m arket and f o r e i g n
D u ring

4 3 6 , 8 8 5 w o r d s w e r e s e n t o v er t h e p r i v a t e

b a n k a nd i n

1930 431

sent occurred in
Number of w o r d s
of

sp ite
sen t

3 1 9 words-

o f th e l a r g e d e c r e a s e
to the

the u n u s u a l b u s i n e s s

s p e c i a l repo rts®

The i n c r e a s e

Federal Reserve

situ a tio n ,

re q u irin g

T h i s b a n k Bs p a r t i c i p a t i o n

t r a n s a c t i o n s r e q u i r e d a l a r g e num ber o f

the y e a r s e v e r a l d e a l e r s

in U .

8o

in

in

open

telegram s,,

S e c u r it ie s d is c o n tin u e d

their

i
lo cal

o ffic e s

a n d C h ic a g o
se c u ritie s

r e q u ir in g a l a r g e num ber o f wire** to a n d ^fr o m

i n c o n n e c tio n w ith
fo r

bank* i n t h i s d i s t r i c t -

o f bank c lo sin g s^

i n th e num ber


the p u r c h a s e a n d s a l e

c o n so lid a tio n s,

o f w o rd s

sent*

etc*,

The

New York

o f Governm ent
o t h e r #*• R *

~ a n ia

a ls o accounted fo r an in c r e a s e
0 ^

CCMP1BA8TACTOBT SHOftEQ MMBB.IBP AMOPBT OF,.gABgr2Rg ^
BU&aSR or SM
PLQT^ g , «at.4B^S8 ABP OOTP gpjgsgs,
(Minneapolis Only)
1931-1930
Ember of tranafera
cade other than for
df Bed«zption Food
f
of Batlooal Baaia ,.

Humber of transfer*
for 50 Redemption Toad
of fetloaal Buko

BS
(giro and nail)_________ Jjfia B ________________________________________ *295*
33.473
555

Tear 1931
Tear 1930
Monthly A w age
Tear 1931
Tear 1930

3,706
3,296

12,746
14,608

t 2,883,406,000.00
3,173,181,000.00
$

$ 11,017,000.00
16,772,000.00

1,062
1,217

196,966,000.00
264,433,000.00

Swaber of
aanloyee*

fixployoao
Solarloo

Other
JtotsM

lo 51
lo63

$ 2,378a18
2,373.26

6 2 ,878o 32

$

$

$

Ioar 1931
Tear 1930

Monthly Averago
Tear 1931
Tear 1930

Total
3SD*n*e
$ 5,266.60
6,008.12

3,634o87

198.18
197.77

918.000.C0
1,398,000. O
B

239o86
302.91

$

438.04
500.68

SffiXH U PttZ
ftuber of
aanloyoe*

Sqployees
Salaries

lo 51
lo62

$ 2 ,371o 84
2,349o81

♦

79*32
62o60

$

I

6o60
B 22
o

Taar 1931
Toar 1930

Monthly Average
Tear 1931
Tear 1930

Other
SsDsnse

197065
195 83

Qwwsxcws o? m m
1931-1959
Month

1931

January
February
ttaroh
April
Hay
June
July
August
September
October
Bovmaber
December

1,254
973
1,172
1,219

Totals

1,121

1,295
1,265
1,287
1,385
1,462
1,199
1.514
15,146




p o m rn ,
1930 ..-.. 1929.................
1,364
1,162
1,372
1,376
1,386
1,428
1,397
1,225
1,449
1,412
10335
18,488

Total
IteOBSO
$ 2,461. 06
2,412.41
$

204.26
201.03

vxra
PLIOBAPS SKIVED
1928
1930
V ft
&

1,309
1,131
1,506
1,457.
1,415
1,566
1,612
1,648
1,491
1,749
1,509
-J L S 2 I

1,530
1,732
1,677
1,716
1,811
2, a s
1,647
AJM ft

1,934
1,573
j u u

17,984

20,990

33,960

1,790
1,464
1,687

x%
m

2,097
1,950
2,277
2,320
2,296
2,035
1,896
1,702

1,868

2,282
1,887
3,333
3,269
2,226
2,252
2,425
2,498
2,293
2,488
2,222
, .... L
.

m

27,462

64

. .

CHECK COLLECTION FUNCTION
'^Olinnedpoiie Onlyj'
During 1331 this function handled 18#9*4 06? items totaling
$ 3 /4 3 ,7 4 3 ,,0 0 0 , a decrease of 3,165,881 items and #481v937y000 in
amount as compared to 1930 with 3lj,139; 718 items totaling $3,3 2 4 ,6 7 8 ,0 0 0 ,
A comparison of the number of items handled, the average
number of employees^ the total expense of this function and the average
number of items handled per employee for the years 1938 through 1931
followss
, Year No* of Items
______________ _______
1931
1930
1939
1938

18-974D067
31,139 718
3 1 ,7 51 ,3 65
3 3 9317p186

Average No,
Total
Daily Ave?
Employees
Expense
No^ of Items
_ __ _____ __
__ ____ pejr Person
39.82
4 3 ,5 7
53,81
60o37

$ 71,196,45
77,873*79
8 8 ?661*60
95,335*35

Ave > Cost of
Handling
l a000 Items_

1,605
1,634
1,356
1,343

$ 3.69
3*63
4 .0 1
4 e31

Tile below table indicates the classification of the items
handled in this function-for the years 1939 through 1931s
Items Handled On

Number of Items
iQ3Q
Twin City Banks
3,836,559
4,15 5 ,3 5 8
Member & Non-Member Banks 13,131,668
14,959*941
This District
Other Fo R 0 Districts
940P368
1,088.,568
Direct to Member Banks
Other FoRoDistricts
37,438
41,373
Helena Montana
11*439
10,395
Treasurer of United 8 tates 1 016. S15_ *
884 384
'T8t97T-06^
Amount (OOO)omitted
$ 3 ,7 4 3 ,7 4 3
$ 3 ,3 3 4 ?673

1929
4 ,2 3 0 * 6 6
15,613,344
1,037*744

.
31, 751, 365
9 3,685,334

The accompanying table compares the cost of handling 100
items and the average number of items handled per person per day for
the various units of the Transit Department for the years 1938 through
1931g
Outgoing Country Checks
Ave 0 No7Ttems " "Cost s “
1931
1930
1939
1938

3,040
3.083
1,551
1 336

35ol£
24*9#
39«5if
33o7#

City Checks (Clearings)
Ave* No0 Items
Costs
3 374
2 156
3,071
3 ,479

19*4^
30.1*
30,7*
19 01*

government Warrants
Ave, ifoV Iteme Costs
3,391
3;363
2,065
1 453

36„3rf
2 7 ,^
36o9rf
37*0*

It should be noted that the cost of handling Clearing Items
and Government Warrants decreased in 1931 ae compared to 1930 and that
the cost of handling Country checks increased but $«03 per thousand over
1930 which was the lowest cost for this class of items in our history
in spite of the large decrease in total items handled.,




65

CHECK COLLECTION FUNCTION
(Minneapolis Only)

( Contd)

A comparifton of the 1931 check collection costs with the
latest available figures for the other Federal Reserve Bank H®ad
Gtxices (First Half Year 1931), Indicates that our costs are below the
average for the twelve main offices.

In the below table we have in­

dicated the average costs of handling 100 items for the Head Offices,
the lowest bank«s costs* and the highest bankfs costs for the first
half of 1931 and our average costs for the year 1931*
City Checks
(Clearings)
Our 1931 Costs
Average Costs F .R U
Bank Head Offices
Highest Bank 's Costs
Lowest Bank8e Costs

Government
Warrants

Country Checks
Return
Outgo ing___________ Items

19,4*

36 3*

35,1*

# 1,33

35c6*
38« 6*
14c8*

31.1*
46© 3*
14,5*

34.7*
4 1 e3*
30 oO*

1.53
3*10
,75

During 1931 we returned to our endorsers 339 000 items total­
ing # 19 ,4 13 ,00 0 and in 1930 367,000 checks amounting to #36?639*000»
These figures include besides dishonored checks > items returned because
,
the drawee banks are not on our lists and non-cash items forwarded as
cash items in error*
The below table indicates the number of cash letters received
and sent, the number of banks reported closed and reopened, the number
of banks added to and removed from our list during the years 1938
through 1931s
Letters
Received
LDaily)
1931
1930
1839
1938

Letters
Sent
L m ix L -

1,344
1,351
1,435
1,604

Banks
Reported
Closed

Ninth District
Bank s
Banks
Reported
Removed
From List
Reopened

374
160
93
103

1,150
1,313
1,416
1. 496

38
7
7
13

ISanks
Added To
Our List

97
70
73
91

5
3
7
8

Comparative Statement Showing Number of Officers,
,
■
Employees and Expenses "Check Collection Function
a
O fficerGs Number of
Salary______Employees

Number of
Officers
Year 1931
*40
Year 1930
*40
Monthly Average
Year 1931
Year 1930




# 3 ,1 1 9 ,9 6
3 ,11 9.97
$

176.66
176,66

39,83
43*57

Employees1
'
Salaries

Other
Expense

Total
Expense

$53*763 50 #15,313.99 #71,196 45
57,184 P80 18,569,03 77,873 79
$ 4,480 39 $ 1,376*08 # 5 t
,933,04
4 765,40
1,547*43
0 489.48

66

fflH CITY O B a Q T H tTG JBBEEAL HESSSYS BAIK
L A iE S H O H
g j a i W i i&
m
1^31 anfl 1339.

Month
January
febrnary
March
April

A t > of Iteoa
mt
on Upls.Bankg

A t of I tame
m0
on St„Paul Bfca,

$58,438,719.96
50,947,374.06
75.737,020.23
63.375.974.45
125,960,915.61 54.273.048.34
June
140.222,252.88 62.489.891.63
July
131, 326,059.93 57.733.832.46
August
127,802,552c I*1 50.541,421.99
September 137 . 630.539036 57.337.732.95
October
141, 435. 476,,25 58, 526, 640,52
SoYember
124,422,379.97 52.575.812.71
December
i26. 576.O8 9 56,758.471.70
l.i
$128,877,676.51
109,503.70^37
131, 602.013,13
125.65^.969,89

Totals $ 1.550.014.621.23

1951

$187.316,396.47
160. 451,078.43
207.339.033.36
189.030.944.34
179.233.963.95
202.712,144.51
189,059.892.39
178.343,974.13
194, 968,272.31
199.962, 116.77
176.998.192,68
183.334.552.89

Grand Tbtal
,

1 .
2

3

5

___________

Xfciily Average Amount
Held Orer
Clearing*
—

$209,602,184.12
187.530.182.11
225.161. 6e7.19
224. 735.096.96
228,381,,142.32
831,410.463.95
285,741,058.92
20 . 497. 711.05
0
234,117.372.01
239. 216. 316,67
216, 561, 908.88
223.728.350.06

1 3 3 1 _____________

. 1 .2 3 0 _________

B m e of Iteme
o br
i93i

i9?o

iqn

iarant

$116,168.12 $116,966 $113,503 $10,179,605.27
102,285
98,742.87
8,202,446,86
94,899
118,680
100,092
107,571.92
9,822,337.97
98,206 10, 163.160.83
101,340.77
123.479
116,423
95 002.68
97,082
9, 860, 515.26
99.437.15
120,810
96.577.14
99.250
9,940,390.82
124,679.57
64, 865.63 122,404.15 120,415 120,807
9.503.538.57
77,626.76
104.000
8,618,109
82.391,19
110,137
86. 456.47 105 820.13 107,500 112.305
8,762,689
90.231.68
9,887,241
U3.U6.fiL 115.859 121.306
98.228.80
110,465
104,337.16
U 2.537
9,232.972
112,450.84
126.000 132,226 8,896,735.09
120,251.71

$ 8 , 911.80
0
100 788.09
99.461.79
110,789.23

,

,

,

M
$10, 980 5 .95
, PO
8, 888, ^ 3.22
9.338,11 3.71
9,112,7i )«6
?
9.658,9*1.99
9.843.4f j.45
U ,7 2 6 0 s 1
4; .6
10,3423 i.42
4(
11,487.835.01
12,238,075.92
U.153.5V+.52
12.344,9^.77

698,735.941.00
$2,646,683,474.24
$ 1,282,352.12
$ 1,312,150
’
$ 127.116,13 8
.25
$ 2,248o750.5§2.23
$ 1,127,300.14
* 1,382,882
$ 113,069.743.85

Average by
Meath. $
109.l67.885.10 $58,227,994.07




Qrm& Total

DIHECT SSSDIHOS 70 OTHSR BSSSB72 BAMS
BX 003 KSMBSR BJJKS 1931 and 19T0

$187,395,880.19 $220 306 956.19 $93,941.^8
,
,

$106, 862.67 $1,152.40 $109,346

$9,422,478.65

$10,593,031.5?

w m um ? o
m

m &L

January
February
March
April
Uay
June
July
August
September
October
Bovea&er
December
Average by
Months

Bally Average Somber
of Sransit Letters
Eecolvad
1931
1930

D&lly Average lumber
of Trsnslt Letters
___•
Seat
1931

1930

1931

1268

1221
1211

1369
1363

121*7

U13
955
960
1026
1152
1189
life
1106
1130
1103
1097
999

1312

1083

1285

1295
1330
1239
1200
1203
1213
U99
122k

1285
1192

12U*
1

l*i07

Ikil

M

1217
1190
1160

lkis

1379
132*
*

117*1

&
1309
1317
1333
1339

HU7
1116
1129
1098
1071
1068

1351

1150

Daily Average Clear­
ing Items Returned
Unpaid

1931
January
February
March
April
May
Juno
July
August
September
October
lOvesfter
December
Average by
 Months


P1
2

*7
*

53

^7
1*2

1*2
^7

1931
ll*

52

M
kS

Daily Average Clear­
ing Items Missent

1930
51
50
52
50 .
52
55
5$
55
56
56
55

1372
1332
1321
1326
1306
127S
1285
1278
1269

15
10
13
1§
16
16
13
13
12
Ik

_

13 ;
' h
Ik

1930

Dally Average S ib r
tsa e
of Return Items
Stadiad

1930

59*960

5^3*9
57,*85
5«.9te
61,252
62,541

1212

62,295

Daily Average Transit
Items Sent Direct by
Ca
fr
Basfr.

1930

1931

1930

67,006

UlWS

1*310
l3 1
*1»
31
8 *9
3928
373*
3970
$639

71^19

a
71.897
72.T7«»

66,763
62.209
67.971
70.613

UW9
1»5&*
14960
S3

U631
Uooo

7U.272
73.108

1*300
>(291
1(803
1*850

70,035

1*571

Dally Average SC, Drafts
Received in other Shan
T % City
wa

1*2 6
3
119
**2
119
**3

5116
5086

kjkl

Daily Average
Eumber of
^moloyaes

1930

1931

1930

1931

1930

16
18
18
21
20

253
255
271
252
242
2I 9
4
2
**9
2U
5

272
276
286
262

^7

52
5*
*
5°

5*
*
53
53
53
53
55
57
58
55

1*8
*9
1

50
50

23
17
17
15
12
1 ,- .. 5 17
12
12
17
18
15

23
21
19
22
17
27*
15
17
19
17
18

2l
*
20
28
22
20
22

16

20

21 *

Zl

1931
&M 95
66,667
66, 51*8
69,156
63.919

Daily Average Out-oftown Items Missent

1931

Daily Average All
Other Items
Sent

Zk

238
229
231

a
267
250
259
255
260
258

2k6

265

2k
3

kj
kj
kz
kj
ks

*r

V

1)8

53

M

M

HSSSHTS B&3F- nj iflE333A?OLSS

mm. m m imm mmmiiaLEP.im ,ia.a-

C>
£

DIESffii? TO BiHKS nr

cmaiiras

m m

122,

3 0 f .§ f |

386,666
3^3.260

April
May

Jtsae
July
August
September
October
Bbvenber
December
Total

1 4 8 ,8 8 1 , 905.68
1 3 6 .4 7 3 .8 0 3 .3 6
130.48 3 .6 7 6.8 3
1 4 9 .7 1 0 ,0 9 8 .7 5

316,476
3 2 6 .8 1 4
31 4,51 9
2 7 5.79 7

1 ,1 8 1 ,2 9 7
1 . 194,435
1 .1 2 8 ,1 0 0
1 ,1 8 9 ,6 5 1

134.4 6,129.07 1,089,015
*
1 3 4.2 7 8 ,4 8 1 .0 2
1 4 4 .1 7 5 .9 5 4 .4 7
1 4 9.4 6 3 ,7 8 1 .4 6

286,825

32 3.92 6
29 1,32 8
319. 5k?

I 29. 63i . 546. 5k
133.164.628.35

3 .8 3 6 .5 5 9
$ 1 ,6 4 1 ,9 1 6 ,2 6 2 .8 4

ttoafely
Av0

'Ogag Esasava

Agpunt
lumber
/japimt
lumber
136, 325,794,92 i a 9 i ,380 $61,945,526.48 87.1 S3
1 1 4 ,2 4 0 ,4 6 2.3 3 1 .025.965 50, 596.262,98 65.437

Humber
342,878

January
February
March

OTOSB HSSS3YS 2I8mC88
H B B R & ISQg-EMm
BM5

98 5.04 3

1 .0 0 2 .5 3 3
1 ,0 8 6 ,3 8 7
9 8 2 .3 9 2
1 ,1 1 2 .4 7 0

.

5 9 .8 0 2 ,4 9 7 .7 7
62, 114, 6* 3.07
E , 003. 115.29
. 671. 277.10
6 1 .7 8 5 .4 8 5 .3 6
5 5 ,5 2 5 ,8 1 0 .4 4
57,726,155ok5
6 0 .0 6 4 .7 5 9 .3 5
. 298, 260.13
2 4 0 ,0 8 0 .06

7 k ,7 ;

77.620
72, a s
8 1 .7 9 5
8 0 .8 9 5
75.810
7 6 .1 4 2

86.758
72.521
89.269

90 our i s m
EBSASORER OF THS
BHAHCH SI US
Aasrnt
lumbar
Amaup*
dumber
Asauat
ia a f e x
*1 9 ,n 5.425.18 3.107 f4. 309 952.36 804 $248^061. 22 717 S51 $7 , 8 0 0 ^ .6 3
.
695 219.883.87
- 15*773.505.23 2.620 3.789.753.7
"
70.172 7.087.313.53
17 . 200. 901.05 3.093 k .3670.
87.374 l4.601.S 3.6l
930 208.339.39
736 226, 761.15 108,383 13 . 380. 605.25
18,558,972.93 2,3559 4.56l.442.Jl
225, 764.26 85.793 10.315.2Cj.03
16 . 770. 505.09 2.717 4 . 197 . 369.&7
268,007.51
83.029 9.623.508„72
18.521.158.79 3.333 .934,922.82 1,<
25s. 8i 7.05
18,019.7k3.05 3.432 I 249.505.02 1. 12f
7C.9S9 10,184.632.10
232, 611.31
8.96 1,050
I 6 . 5i9 . 5k6.72 3.333 3 . 889,71*
81.343 9.439.0)5.73
206, 244.75
75,665 12,240,233.40
17.908,052.59 3.286 4 , 428, 568.08 1,017
18,821.087.37 3.389 4.682,771.12 l,os6 358,001.59
98.560 13.571.7W.7k
19.430,262.04 2,889 3 , 268,967,40
997 192.117.87
84,675 12.446.777.08
2S7.W0.43
90.981 1 1 . 008, 6*
56,13
19 . 058. 758.14 3 3ko 3.167.159.95 1.153
.
bahks

13 131.668
9ko,35s
,5 7 0 0 .7 7 3 .9 1 0 .4 8
$ 216,297,918.18

3 7 ^

11,429
> ,0 1 « .& 5
$ 49, 150 , 757. 7 ^
$ 2 ,S02,g90,!'0
$ 1 3 1 / 00, 368.95

860

Items

78.36k

1 .0 9 4 .3 0 5

319o713

3 .1 1 9

052

84,7 18

tbsthly A
v©
Amount

$

136, 826. 355. 2s

$ 58.397,825.87

Grand Total Items . ......................................... ...

$

18,974,067

Grand Total .Amounts................................................... $ 2,742,741.808.63




18,024,826.51

$ 4,095,896.48

(6

2*.,882»'J

$ 1^,975.03^74

O
a>

MIMSAPQLIS jm BSEBKi BBAHCS
QFSRA.vIQ^S OF CK5CK
ABP COn^QglQF JKPAHg^lT
Detailed Classification IMbsr

and

of Items Handled "by Months during

1931

with totals for 1927. 1928. 1929# 1930 and 1931<

(In thousands only ,0 0 0 omitted)

iTsm mm qibms u qw

.r a s M B

district

ow n t„ a„ MsmcT8
m xh
233L
Jan0
?®b 0

la tssk Jb s&i

So„
35*
31S
398
35*
327
33«

Harch
April
Hay
June
July
326
August 288
Bept0 298
Octo
336
302
lOTo
Dec, J 3 1

Aaount

♦ 1 2 3,93 2
1 0 3 .2 9 7
1 3 3.15 7
1 2 5 .7 2 7
115.891
1 3 1 e889

122,185
1 2 3 ,9 *7
1 3 5.78 5
136.378
1 1 5 .5 1 5

120.*lb

Total 3970 $ 1,1*88,119

Ourselves
30,
9
7
7
7
7

$

69.900
5 0 ,8 3 *
7 1 ,5 2 3
57.7 5?

67.636

1283
1139

1310
1323
1253

*

69,963
57.896
67.216
71,107

66,509
7* , 110

2
2
2
2
2
2
2
2
2

$

952

1 . 1%
1 .1 8 9
1 .0 9 1

1,030

3
3
3

$ *».3io
3 .7 9 0
4 ,6 7 1

3

4,561

61 ,2*0
......62*683

2
2
2

1.035
l„l68

$ 795.432 1 4 ,5 4 7 ♦ 799,831

24

$ 1 2 ,9 0 9

36 $ 4 9 .1 51

7 7 .9 8 *
70,1 95

7

55.5 37
77 .1 72

63,1100

8
68,115
8 ...... 65.377
92

Sbf
l

Direct
SSft4*W5S__.
Fa*...

3
4 .1 9 7
3
3 .9 3 5
3
4 ,2 4 9
3
3 ,8 9 0
3
**.429
3
4.683
3
3 ,269
J L _ . JL J .67

8
8
8

8

Other Banks

Interchanged
Branch
Bead Office
Bpn
AaeS&i

1318
1208
109*
1105
1199
1088
12?7

70,113
63.736
66,389
68,869

1 .1 6 7
958

1.025
985
1 , 16*

Other
H®serve
1 asfea.

Treasurer of
W W l Stetes
____ AmoMJfc

9* $ 22,799
87
18,2b8
8*
71
82
19*993 102
2 1 ,0*9 128
85
19.**03 10*
83
90
21,8*7 102
21,768
89
98
19.608 102
83
20,578
83
97
98
22,055
22 ,*88 s a
81
97
22*05*. 108
1036 $ 2 5 1 ,9 1 0 1235

$ 9.357
8,590
16,738
16.375
13.100
12.179
13.295

1 2 ,4 8 6
1 4 ,9 4 0
1 5 .9 8 3
W .367

11.239

Total for
m i
SO - m m
- -

1 C32
1624
1904
1902
1779
1861
173**
1580
1595
1765
1588
1776

$3010213
243,820
314,487
297,669
287.766
323,111
302.763
288,092
298,6%
326,304
286.1
288.i

$ 160,809 20,9*10

♦ 3.558,161

1931
1930
1929
1928
1927




Total for
1910
So.
Aarart

1926
1742
2005
2030
2071
2000
1937
1776
1898
2124
1826
2111

$3te,«
351.230
369.892
362,602
357.265
330.776
366,517
363,lA
319. 5^
3fij.0<M

23,448
♦ >*.169.356

____ 20.940 $3,558,161
2J.448 I 1 169,356
*.
24,275 4,711,582
24,874 *,591.766
24,238 4.277,152

g r g i BBilOH
g .- w

J&iWm&mZrnmZmZmSmLm, mt

Bgqg or tbs tbabsit n H lannng mi
g-m ser
Clearing*
Jwmt
lumbar
16,000 $ 7,646,000
January
13,000
6,417,000
February
March
16,000
6,870,000
iprll
15,000
7,815,000
Hay
6,482,000
15,000
16,000
7,893,000
JUne
16,000
7,459,000
July
August
16,000
7,383,000
15,000
3,263,000
September
October
17,000
8,208,000
lovember
10,000
6,554,000
16.000
Saooftbar
7.606.000
Totals
186,000 $ 88,594,000
Monthly Avir<>
Items
15,500
Monthly Avert
>
$ 7,382,833
Am
ount

To Head Office 2? Us
Am
ount
It»ber_„
1,000
January
1,000
February
1,000
March
1,000
April
1,000
May
1,000
June
July
1,000
i&gUSt
1,000
1,000
September
October
1,000
Kovenber
1,000
December
1.000
fetal»
12,000
Monthly Arerc
Xteos
1,000
Monthly AverG
imount




704,000
925,000
981,000
864,000
804,000
899,000
699,000
793,000
779,000
806,000
843,000
910.000
110,006,000
$

.
$

IM iS 4
mk
Baabor

Drafts on Us
Vtmbsr
Amounk
$ 6,988,000
5,833,000
6,943,000
8,660,000
6,373,000
8,364,000
7,855,000
7,695,000
7,545,000
8,673,000
7,428,000
8.306. GOO
i 91,061,000

2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
3.000
24,000

$ 8,017,000
129,000
113,000
7,300,000
123,000
7,414,000
129,000
8,992,000
125,000
7,506,000
126,000
9,439,000
8,338,000
119,000
109,000
8,310,000
103,000
8,663,000
113,000
8,804,000
106,000
7,942,000
.... 115.000
8.443=000
1,418,000 | 99,050,000

3,000

118,167
$ 7,868,417

$ 8,264,833

To Oth.«r Reserve Ssnk»
Iwfoir
Am
ount
7, 000
6,000
7,000
7,000
11,000
8,000
8C
000
7,000
7,000
11,000
8,000
8a000
95,000

$ 3,084,000
2,494,000
2,793,000
2,480,000
3,633,000
303260000
3,748,000
3C
088,000
2,670,000
3,234,000
3,058,000
3„995a000
$ 35,611o
000

treasurer of U« Sc
Stttber
Am
ount
15,000
14,000
15,000
20,000
18D
000
19,000
19,000
21,000
21,000
20,000
. 19,000
17„000
218,000

7,917

833,833

1,556,000
1,503,000
2,136,000
2,994,000
2,786,000
2,555c000
3C
110,000
3,047,000
3,700,000
3.411,000
1,930,000
2„ 390,000
6 £9o D
10? boo
$

18,167
$ 2,96705S3

a&JB TOTAL 07 IT2HS
V
(SUHD TOTAL 07

iaenat

$

2C
425,583

1,853,000

M3CSTS - $353,437,000

71

Nui* GASH COLLECTTOff F
UNCTION
(Minr.eapolie Only)
During 1331 this department handle! a total of 1*000,157
items

an increase of 283^179 collections as compared to 19?0 with

7 1 7 ,9 *9 items.

All units of the function increased in volume over

1930 except Government coupons, handled., which decreased f rom 4 8 7 ,SIB
coupons in 1930 to 440,008 in 1331

City collections handled in

creased 3 1 ",23 7 over the 1930 total, the increase being attributable
to the handling of grain drafts for all Twin City Banks beginning
in May

During 1930 Minneapolis banks collected grain drafts direct,

the Federal Reserve Bank serving at: Paul banks and all out of town
member banks that desired to clear these items through us

eahdusd.

atncagR or

Total Ho.
Collection*
_

Toar 1931
1,000,157
Toar 1930
717,979
Monthly Average
Toar 1931
83,346
Toar 1930
59,333

V of
Oo
8 o of
0
OffiOfficers Inploy- Saployeo*
O tr»

.20
o20

. .. S * l a r l f »

OOt

$ 1,059.98
l,059o
98

S a la r ie s

16.26 $32,503.44 $ 3 117.29
15o03 21,732.30
3,139027

88.33
88.33

1,875.29
1,811c 02

0QHPABI30S Of m u m C> Trms ascszrw roa
1931-1930
(KlsnMpoll* Only)
1931 .
JaBo
rct„
Mar.
Apr*

11,200

9,621
10,167
8,781
mr 31,146
Jim* 36,728
July 31,742
iS ® 63,344
O,
S*^t, 78,349
Oot. 73,678
S o t . 63,111
Sac. 44.891
Tom

442,447
JMOat
(000)
Okaittod
$ 108,161




1930
8,368
7,500
6,460
6,716
7,508
9,104
9,091
12,902
17,456
*#,911

12,101

13.103

Country ColloctloM
1931
1930
4,264
4,513
3,994
4,049
4,058
4,327
4,292
3,746 *
4,124
4,212
4,380
4,487
5,248
4,049
4,584
3,948
4,362
5,222
6,371
4,802
5,800
4,686
5.425
4a,a?.

125,220 58,442

$ 59.330 $33,303

Other
sacponoo

Total
Bsponto
$ 26,680.71
25,031.55

25907?
261 SI

2,223.39
2,160.96

cqlebmicb

Soctirltr ColloctloM
1931
1930
4,85*
5,066
3,839
3,853
4,643
3,623
5,432
4,156
5,204
4,195
5,885
5,033
4,711
3,865
4,226
3,423
*tm
3,984
4,811
4,635
5,175
4,550
-,A§a&

eoronraont 0omen*
1931
1930
33,021
34,302
9,696
10,301
15,222
22,515
93,016
88,278
56,507
51,974
43,287
48,060
22,673
23,750
10,998
11,019
10,456
16,545
82,335
95,838
38,154
44,656
£2*581
44. M 3

51,019

99,260

52,003

440,008

487,819

$ 43,031

$ 34,114

$ 23,349

$ 7,226

$ 8,792

72

^raminaUoas or credit investigations of all state member banks ia the
Jliath Federal Beeetrve District wsre made during 1981 by eacaolaors from this de­
partment with the exception of the Commercial Bank of Meaottiaee, Michigan, the
State Savings Bank of 3aoanaba» Mlehlgaac the Pevder Biter Cooaty Banke Broadus,.
Montana, and the Central State Bank, 3hiie Sulphur Springs, Montana, 'the C m
omercial Bank of Menominee, Michigan was examined by the State Department on
Septsober 8 and a copy of the etate examiner5 report is on file ia this office*
s
The State Savings Bank of Bsoaaaba was admitted to membership on August 120 19315
that bank being aooepted on the examination report of the State Department The
two Moataaa banks that were aot examined fy thie department withdrew from m ber­
em
ship daring the year,, The examinations and credit lavestlgatloas by this de­
partment in the various states were as followss
State Banka
L ieiO j& l^jj^m

0

0

0

0

0

0

0

0

4

6

Minaeeota o o o o o o o o
7
l»oat&n& o o o o o o o o o
33
South Dakota 0 o * o » * 0 10
visoonaia o o o o o o o ° m
^m
m

of Oredit lavesUgaUo&B

o
S. D Sharratt
O Joaes
o
It
A. A Boerr
d

iXamiaed for
EnVscfMG...
4
•
•
4

gfeamlaaUoaa aad Special Visit!

Credit
35
6
14
45

Special
ItiltiU
2
1
.<
■
3

VU«
fcswlnA
13,23?
7 40C
--SJ»0
3t„S30

Bjaawrje
raqsp4^i9a O t t t M g U w a .
Humber of reports received frm the Chief National Bank sxamiaer^s Office XB
093
(The cost of these reports aggregated £8,470o00 for the calendar year0)
111 duplioate copies of the reports of e^aolaatioa of Moataaa aatloaal banka were
received from the Chief ^xamlaer ? Office, and the coat of these additional copies
e
aggregated £
245*75 for the year0
All of the oriticicable paper ooatained in the reports of osaminatlea of banka that
borrow, with the exceptioa of Moataaa banks0 waa Hated for the Piseomit Department
Sgports of
aH t?
Efaaber of reports of examlnatlca received from the various State B
ayrigfag Departs
meats in the Siath District of state member banks examined iadepeadaatly by them waa
aa followso
Bomber
flU a
o L is m M
&jl
Michigan • 0 o 9 o . «
1
$ S025
Moataaa « 0 • • « . 0
3
10o00
Heports of all credit Investigatloas and examinations made by Federal re­
serve examiaers la the Hath District were typewritten ia this office* One copy
was retained for oar files, one copy seat to the bank examined* aad one copy
forwarded to the State Banking Department One copy waa also forwarded to the
Helena Branch oa all state m ber banks la Moatam
em
So Aaalysee of all reporta made
by either Federal examiner® or axaainers from the State Deparfemeata, were made oa
Jbrm 213~2l3a and forwaraed to the Federal Heaerve Board, shuwiag a etnoary of the
examiner ? criticisms aad oonmeat oa the oonditioa of the bank by this department.
s




73

BA3K gUMIHATlCCT PgAB9M
Bii- (Contd)
Alphabetical lists of all criticised paper containad is the examination
reports of all state tasks, with the exception of Montana "tanks, were made for the
Discount Department«
All examination reports, ‘
both state and national, and reports of credit
investigations vere analyzed on comparative analysis sheets, one copy being furnish­
ed Governor Geary and one copy to Deputy Governor Taegar® Ihese sheets contain a
brief stBsm
ary of the examiner’s conclusions and a general statement as to the
condition of the banko Eatio and percentage analyses were also made and written up
on oards filed in the .Agent (s Office, which indicate the progress made by each bank
as shown by successive exasninationa0 These ratio cards sat forth by a percentage
of capital stock and surplus ‘ Degree of Solvency*, ”Oredit Policy*5 and *Miscel,
laneous Administrative Facts*, and the situation as to liquidity by a percentage of
various asset accounts as to total deposits*,
When state member banks were shown by reports of examination to be in an
unsafe or unsatisfactory condition, special letters were written either to the bank
or to the State Superintendent of Banks, calling attention to the unsatisfactory and
criticised matters, with a request or direction that corrective action be taken.
At the request of the Federal Beeerve Board, prior to the declaration of
each semi-annoal dividend, an estimate of the net loss which the Federal reserve
bank was likely to sustain on the Indebtedness of suspended banks 2 other banks
nd
was furnished to the Boardo
2gport« of 3aralng» and Plria>n*«

a«nnrt» of Condition
Approximately 3 ,630 reports of earnings and dividends and reports of
condition were received, cheeked, and recordedc
Application* for p«rml»»lon to exercise .fiduciarr powers approved. etc0
The following applications for permission to exercise fiduciary powers
were approved by the Federal Beeerve Board during 1931s

lame of Bank
American national Bank
Helena0 Monte
(T it l e changed to First Rational
Bank and Trust Co» of Helena)
First National Bank
Dickinson, S„Do
Security National Bank
Brookings, SnDo

Date
improved
3-27-31

4-28-31
5-18-31

Capital
$500,000

gowere
Fall

100,000 Toll
5 0 ,0 00 ?oli

The James Blver National Bank & Trust Coupm y of Jamastowa0 Eorth Dakota
made application on December 21, 1931 for the surrender of trust powers granted by
the Board on June 5, 1922
Action on this application has not been ccopletedo

31even applications of individuals
time as directors, officers, or employees of
other banking institutions under the Clayton
Federal Beeerve Board during 19310

for permission to serve at the same
a msmber bank and not more than two
Act, were raceived and approved by the

One hundred eight applications affecting the stockholdings of member
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 rac&amandation
( O f theses 7 were granted charters by the Comptroller of the Currency,
the organisation was incomplete as to 1 on December 31c 1931v and X was
abandoned*)
Information regarding suspended banks obtained from State Superintendents
During the year at the request of the Federal Eeserve Board, wo mailed

Form Sto6386b to each State Superintendent of Banks, requesting information on
s
suspended nonm ber banks, These forms show the capital* surplus,, depositse and
em




74

9

■AW

w rnum

barroaod Bonajr of tha twdn at the dato of oloalag: also tha pxlaary oauaa of
olotlsg and contributing c«oaa>, Vhan tha information la rooalvod froa tha varloa*
Stat* Separlntandanta, It 1« faraordad to tha Tadaral Baaorra Board.
V' *

•

Information was also forwarded to ths Tederel Beeerve Board monthly on
forme Sta 6286a, 6386o, ond 6386d, chewing bank oonoolldationo, organisations,
liquidations, conversions, etc,, and changes in group or chain banking

BABg

XS 1931

Total nuabor of aoabor banks In this distrlot January 1, 1931............. *
low national banks organised
Stats banke admitted 0 o • » e « • « • • • * o • » • • « « . . a a a » 0 a

663
9

Z

675
Xational banks aboorbod b r nonmamber stato institutions 0 • « o » •
g
national banka aboorbod by othor national baxiko . » 0 o o o * o 0 •
Hational barite eonsolidatod with othor national bank and non*
Q O f O S^atS institution
l f ib r
oaoaaaaaooaooaooao
national banks suoooodod by nonmeaber stato institutions 0 • « • «
national banka ouoooodod by othor national banks 0 . • « * « • « a
Hotional banks liquidated » 0 < » « • • . . . a 0 • « • , a . • • *
»
Stato meaber banka ouoooodod b r noaasaber otato inotitution « . e a
g
Stato aoabor bonka aboorbod by national bonk 0 • 0 • « » a . •
.
Stato aeafter bonk withdraoals
«
,

o9
°13
al
« 6
• 8
35
0I
a 1
, 3

77

Total amber of aeaber bonka at tho ond of tho yoor » « « ,
(Per Stock book records)

598

lUaborshin
At the olose of tho rear, there were 098 asaber banks in this district,
as oooparcd with 663 asaber banka at the beginning of tho year,, There was a not
loss of 63 national banka and 2 state banks0 fhe total membership at ths olooe of
1931 was divided Into 558 national banka and 40 atate banks0 She new asabero ares
FOo of Shares
Zaae of Bask
Subscribed ...
Xaoatlon
State Saviogo B*nk
first National Saak in Jnoka
Hie lorthwoatem National Bonk of Dawson
Tho Zovorne national §nnk
The Hein Motional Bonk of Modioon
Vir*t National Bonk in Payneeville
First national Bank in Wheaton
The first national Bank of Sthan
Farmers s tote Bank
Tho Northwestem national Bonk of Madison
Security Bonk & Trust Company
The 11rot notional Bank in Durand




Bsoonabaa Jlicho
Anoka, Minn0
Dawson, Minn,
Lovomoc Miano
Modioon, Minn,
Payneeville, Minn,
Wheaton, Miano
£thon0 S D
o o
HondreaUo S0 D
Madison, S D
o o
Madicon, S D
o o
Dorondo TiSo

130
36
18
36
36

n

36
17
33
38
36
36

75

a

a t bimtbatIOJ PgPAgKBtT (Contd)

immm sima stmiio comacriosa tim this m m mwrnia a m w arn 1931
A - m *B (W 1 T TT
TM
8 PI '

8JA3B II3TITPCT0W

Sato
%Sao of Back
Location
1-5-31 I n First Eational Bank of
Howard, S« B*
( Absorbed by Minor County Bank of losard, S« Do)
I-16*31 Malta Rational Bank
Malta, M
onto
(Abstfrbsd by First Stato Bonk, Malta, Monto)
3-10-31 Wsloose Batlonal Bank
Welcome, Minn
(Absorbed D r Wcloane Stato Bonk, 9elooae, Minn,)
g
3-16-31 national Bonk of idrian
idrian0 M o
ixm
(Absorbs* by idrian Stato Bank, idrian, Him ,)
8*36*31 First National Bank
Fstsrsbarg, HoD«
(Absorbed V Farmers Stato Bank, Petersburg, I 0D0)
3-30-31 First National Bank
Ibrsst trios. Minn,
(Absorbsd by Forest L*ks Stato Bonk,, Foroot lake, Minn>)
5-33*31 First national Bank
Scrsnton, B* D«
(Absorbed by Bank of Scranton, I»D0)
8*31-31 Ban Clairo Rational Bank
San Clairo, 31s,
( Absorbed by Ban Clairs Stato Bank, 3aa Clairo, Wls,)
II-3*31 First national Bank
Sola, Sa
D0
(Absorbed by First Stats Bsnk, JC lm I'D *)
u ,

3o of Shares
ggrrendorsd „
18
48
36
18
34

18
27
130
30

MllWAL BABgB ASgQTO BT OTHBB JFATIOjALBABgS
4-37-31 Austin national Bank
Austin, Mn <
la>
(Absorbed by First national Bsnk, Inst in, Minn,)
13*17*31 Cit 1sens Batlonal Bsnk
Fairmont. Mian,
( Absorbed by Falnont EStlonsl Bank, Pairaont, Mlnno)
3-3*31
First National Bank *
Sanoook, Minn0
( Absorbed by Hanoook Batlonal Bsnk, Hancock, Minno)
7-31-31 First Batlonal Bank
Hendricks, Minno
(Absorbed by Farmers Batlonal Bank, Hendricks, Minn*)
13-38-31 American Batlonal Bask
Lake Crystal, M l n n o
( Absorbed by First Batlonal Bank, Lake Crystal, Mlnno)
4-2*31
Metropolitan Batlonal Bank
Minneapolis, M l n n o
(Absorbsd by BoWoBatlonal Bsnk, Mlnneapolle, Minn,)
13- 31 Slohflsld Batlonal Bank
7Mlnnsspolls, M
lnno
(Absorbed by V*Volitional Bank, Minneapolis, Minno)
6-5-31 F ir s t National Bsnk
Mlnasota, Mlnno
(Absorbed by 3*armsrs & Msr0 Batlonal Bask, Mlnnsota, Mlnno)
4* 3*31 FFlrst national Bank
Hobson, Honto
( Insolvency - Taken over by Batlonal Bosk of Levlstovn, Monto)
3-14-31 First Batlonal Bank,
Sonars, B <
»D ,
( Absorbed by Kenmare Batlonal Bsnk, Kenmare, B«D« )
5-13-31 aons Batlonal Bank
Dell Bapids, *%D0
(Absorbed bF Esw First Batlonal Bsnk In Dsll Bapids, S0D >
<)
2*25*31 Batlonal Bank of Qary
Gary, S0D
o
(Absorbed by First Batlonal Bank, Qary, S0D«)
11*23*31 Dakota Batlonal Bank
Yankton, S,D0
(Absorbsd by First Dakota Matl Bko 4 ,
Sruet C
od Yankton, S»Do)
m am
m m
6*30-31 Batlonal Bsnk of Montana
Bslena, Monto
(Consolidated with Amerlean Batlonal Bank and Montana
frost & Sayings Bank,, both of Helena, Montana, under
title "First Batlonal Bsnk & Trust Company of Helena,)




81
36
31
30
22
450

18
33
24
34
36
30
72

240

76

( Qontd)

gjgxogAL w m

m o m rn bt tffW fp*

w * * m tm s
Ho, of Shares

V

Jhm .Qt.M A

2au

iStL

M B E Sto Sle.

23

Roeenount, Minn*
first national Bank
^ M1m>)
( Succeeded V first State Bade, Rosaaoaat( UUa
tackle, loDo
11-13-31 firet national Bank
( Succeeded by first State S flfc (tackle, Ho D,)'
a e
firet National Bank
1 * Moure, £oD0
8-31-31
(Succeeded by Firat Stata Beak*, Z* M
oosret H0D0)
ttiehigsa C$iy~H,Do
6-19-31 Leak's national Bank
(Succeeded by Lsab°s Bank of Michigan City, loDo)
Citlsans National Bank
HorMweod, S0D«
6-19-31
( Succeeded by Horthwood Stata Bankt lorthwood^ H Do)
f
o
4-37-31 Firat Sattonal Bask
fhitaan0 I 0D
o
(Succeeded by Bank of ^hitaaa0 HoD0)

7-81-31

m s a a m ju m
3.10.31
4-28-31
7-21-31
3.31-31
8-10.31
3.3.31
5 - 1 - 3 1

9 - 1 8 * 3 1

w tm s r n bt o m

21
39
18
37
18

batiqhalbajks

first national Bank of
MaaietiQuev Mich*
(Succeeded by first national Bank in Maaistlcue, Micho}
Litohfieldp lttaa.
firat National Bank of
(Insolvency - Succeedad by first SatloBank ia Litchfield
Litchfield, Hina
first national Bank ia
(Sttooecdcd by northwestern Batl Bank of Utohfisld, Miaao}
Payaasville, Miaao
firat national Bank of
( Succeeded by first national Bank in ?ayneevillek Miaao)
Uheaton Minnc
firat satioasl Bank of
( Succeeded by first national f l l f c f l l c in Wheatoa* Mian*)
first HatioSal Bank of
Oarrisoao ScD
o
(Succeeded Ijy first national Bank in GarrlsoBo H0D«)
Durardj Vis*
firat national Bank of
( Succeeded by first Katloaal Bsnk ia Durand* Wis0)
fhiUipaB
fiSo
first national Bank of
Bank ia Phillips* fis,
(Suocseded by first national

7 3

8 7

6 3

2 1

3 0

3 7

n
1 9

HASX01AL BANKS LIQUIDATED XS1. TO ZBSOKVXSBT
Iron national Bank
Aaoka national Bank
first national Bsnk
8 - 7 - 3 1
first national Bank
5 * 3 8 - 3 1
first national Bank
3 * 3 $ - 3 1
first & fsrners national Bank in
4 - 3 4 - 3 1
7 - 3 1 - 3 1
first national Bank
1 & - 3 1 - 3 1
first latlonal Bank
Peoples national Bank
8 - 1 9 - 3 1
firat national Bsnk
8 * 1 * 3 1
2 - 1 0 - 3 1
first national Bank
first national Bank
1 0 - 9 ^ 3 1
9 - 3 8 - 3 1
firat national Bank
1 1 - 8 - 3 1
Labor national Bank
9 - 1 0 - 3 1
Bottiaeea national lank
7 - 3 - 3 1
first national Bank
Steele County national 2enk
9-13-31
13-13-31 first national Bank
Security national Bank
6-%*3l
first national Bank
3-10-31
3-31-31 Merchanta national Bank
10 33-31 firat national Bank in
first national Bank
U - 3 3 - 3 1
7 - 1 8 - 3 1
6 -9 — 3 1




Zroavoedo Micho
Aaokae Miaa*
Baasotto Minac
Ivariho*. Miaao
Karkhoren0 Miaac
XmamSe Miaao
Mountaia IekeQ Miaao
Morao Miaao
Shakopeoo Miaao
Tracy0 Minn*
Tyl«*c Miaao
Veetbrookr Mina*
Soobey6 Moato
Three forks0 Moat
BottiaeaUc HoDo
Orary, BeD
o
fialey. B D
oo
roraan B D
oo
Hope, n«Do
falhall&0 H D
oo
Villa* Oity0*n0Da
Alexandria S0D0
Eankineon H D0
o

7 8
4 9
3 9
3 1
3 3
9 0
3 9
3 0
1 8
4 1
4 6
3 4
3 0
1 8
3 1

a
30
31
18
1 7
1 7
8 6
3 4

77

m

ffM ffW W

Coat)

smam mm Mssmm m w mj&Mi (*« >
*&

Boo of Shares
Surrendered
18
Brandt, &,DC
30
Bridgewater* SoDc
30
H k Point o S Do
o
18
Fairfax, 5oD«
30
Ooodvin, SoD
o
35
Motridge, S D
oo
18
Xto Yernon, Sq
Dc
18
Pollock, S D
oo
48
Bedfield, S D
oo
19
JteiroMl&p 'TiSo
ao
Frederic, Wis,
19
Glexwood City, Wls

Log**Ion

i t o an.
f

>i
a
10-16 31
&>5®3X
11-28 31
3-3-31
12-11-31
9^>28^31
12-14-31
6-26-31
11«6»31
IS^ScL^Bl
3=> 31
1£

First Hational Bank
Jtenaers Hational Bank
First Bational Bank
fbe Etaaar* Fatixial Bank
First JSatienal Bank
Security National Bank
First National Bank in
First national Saak
i&eriosa national Bank
First national Bank
First National Bank
Ifenaars national Bank

bt r o w e m s ^ g i m h
Sou&fcsrn Montana Bank
Bnnis, Honto
( SoccssAsd by Madison Taller Bank, amis, Monto)

S-^31

s k s i

30

21

Broftn County Banking Company
Oroton, SoD
o
(fiksn over by First National Bank, Groton, 80D0)

1^16-Sl

b m ».
linneto
nJca Stats Bank
?«24*31
11~25~31 Powder Biver County Bank
ld-&>31 Central State Bank

Saoelsior, u &
in o
Broa&us, Mont0
Whit® Sulphur
%r£ngss Moat»

30
87

21

a w SET J sm . ar grass bict .m m m u m m
&o
m m ssm a m woas xe <m vmsm.
Data
10-24-3I

10- t 31
S

law -t a « k
toq&iaa
Sosean County National lank
Hosestt, B n
lin o
(Absorbed by First National Bank, Roseau, Minno)
Oneida national Bank
Sliinelander# '7is0
( Absorbed by Merchants stats Bank of Sbinelander, Wise*)
—

iim >m m_mm aiw
os

rsia saxa a gas b o w l

13.30.~31 Mrflt Sat; sal Buk
gaw p

13o7o3i
IQ~$»81
11^18^31
8~?~31
6»7o31
8»?o3l
&-7-31
1X=>&°31
12-16-31
10,20-31
11-13-31
X£ 39=> 31
9»24»31
9»32»31
9«28»31

OoortatMy, X,D.

u m m M m m s un.mt.jm r a

Batieaal Bank of Aitkin
First lational Bank
First Bational Bank
First batieaal Bank
First national Bask
First National Bank
first national Bank
First national Bank
First national Bank
Ilrst National Bank
First national Bank
First national Bank of Ouatar City
First National Bask
First national Bank
First Batienal Bank
Farmers & Merchants Bational Bank




w m m MS.

»
«<W>:
Zsanti. Minno
Stevartvilla, Minn.
Stanford, Mlnno
?arahall, H0D0
?l*s*» loDo
3y&er; IoD0
Tan Sook, I, D
o
, Sto 3ioaeae IcDo
H ai t m tU r, I 0D0
Belle Fouroe, SQ D0
'Ouster, S D
o o
Farmer, S D
o o
Sieaetoa0 S„ D«
Tiborg, S D
o o
febater, S0 D
o

,

m m m m m isrL. . » &
Bational Banks
Stats Banks
fetal

_ aa
_

679

78

m siw i&a m w w n cit
( Inolxt&lng Mmiaietration)

‘ o30
o30

Tsar 1931
Tear 1930
Monthly Avsrags
Tear 1931
Tsar 1930

Total
®!®o»*o_

6.63
8.03

I75o00
178o00

$10,493.33
10,634.44

$1,487.88 $14,061.13
1,338.88 13,971.31

$

$ 2,100c 04
2e099o
99
#

Other
SRJOMO

2sraleyoe»
Srtarteo

Soabsr of
assloyej*

Offioars
Salarlss

Busbar of
Offioars

$ 133.33 $ 1,171.78
111.41
1,164.38

>74.44
837.87

*

■ 3RBZ flHTCRB
Printing and
Stationery

Postaga
Taar 1931
Taar 1930

$

$

$ 3,395.90
3,631.36

808c 17
907o00

Monthly Avsrags
Taar 1931
Taar 1930

?otal

67035
75„58

$

$ 3,104.07
3,438.38

191.33
310.94

$

238.67
286c53

Ij£gBjy2
Stanbsr of
Staleys**
Taar 1931
Taar 1930

Sslarlai

Sen Service A
3ub»orlt>Uon»

Monthly Avarags
Taar 1931
Taar 1930

9

770o00
l .m o o

I 693.73
343.86

$

343.43
318.33

$

o4r
lo02

Other
3X00000

Book?

64,17
93o78

$ 49.39
38o67

$

38.64
36.B3

Totsl
&®snss

$ 170.86 $ 1,876.03
100.95
1,887.13
$

14.34 $
8.41

15So34
157o36

BAML m s m
WinSm
kiS
J
offtoere
Salariee

Boobor of
Offloara
Taar 1931
Taar 1930

o94
„94

Monthly Avsrags
Taar 1931
Taar 1930

$ 7.060.00
7.060.00
*

fioabsr of
3soloysss
3.18
3.18

687.60
687.60

Other
3a»en*e

a^loyooo
Solarlo*

Total
ftx&snsa

$8,890.06 $ 8,348.99 $34,087.04
8,466.43
8,383.93 33,798.34
8 734.17 $
705.46

696.68 $ 3,007.36
880.34
1,983.19

mmu> S38zm botj issras
Sfenbsr of
Officers
Taar 1931
Taar 1930
Monthly Avarags
Taar 1931
Taar 1930




o21
o2l

Offloor* •
M t t in
$ 1,600.03
i,500„03
$

125.00
136.00

Ihnber of
Swioyeee
.79

.80

Siployaee
Salarlee

Other
liiwonee

$3,608.38
3,600.03

$

$ 393.37
391.87

$

Total
Jzpaziss

43.49 $ 6,060.89
89.69
5,039.84
3.64 $
9.80

430o91
432o47

79

FEDERAL ftEaSRVB IfOTBd
At close of business December 31, 1931, our notes in the
hands of the public amounted to $ 69,1 39,000 , an actual increase of
$1 5 j571,000 in circulation for the year

The excess of notes issued

by the Agent during the year over retirements was $13,584^000 to
which must be added $ 2,9 8 7 ,000 paid out of the Bankas own holdings.
Surplus of our notes carried by the tellers has been substantially
reduced because of the strain in oroviding suitable cover with the
Agent

Practically 80 per cent of our gold is held by the Agent as

security and reserve against notes issued
'tfith euch a large quantity of gold held by the Agent and
s. further la rge amount tied up in non* eligible collateral as re­
presented by our holdings of Government securities* we have had to
make transfers almost daily between the Bank and the Agent to main­
tain cover on notes and sufficient reserve against deposits

To help

the situation and at the same time retain all our earning assets
possible, we arranged for the appointment of Agent'S representatives
at Helena and rere thus enabled to retire about $1.,700,000 of our
notes at the Branch•

This money had been carried in the cash and re«

quired cover with our Agent.
The issues of the oast year have not conformed to normal requirementso

In 1930 there was a contraction of $ 1 3,3 98,000 in our

notes because of the falling off in business*

During the past year,

with business demands less, the expansion was greater than the con­
traction of the previous year*,

Currency withdrawals from member banks

beginning in August, have been heavy and although the demand for
larger bills has now fallen off, confidence is not generalo

This is

indicated by the failure of our notes to contract noticeably after the
close of the year*,

Normally,

the return flow of currency is heavy during

the first part of January but up to the close of business January 1 1 y
1932,

the amount of our notes in circulation had been reduced only

$335,000 since the end of the year*

One year ago between the same

dates the contraction was *>1,750,000.,
Federal reserve notes issued by the Agent in 1931 amounted
to $ 4 2 ,1 8 0 ?000 made up of $28,870,000 in new notes and $13,310,000
in notes which had been previously issued.
Digitized for $3 9 ,0 5 2 ,0 0 0
FRASER


During the previous year

had been issued, 4?>3,224,0QQ of which w** in

note#*

FSDEhAL KESSHVE NOTES

(Contd)

The big difference in transactions of the two years came in the amount
of notes destroyed

m xitdG euid alto in 1929 vhere was a heavy de«*

etruction schedule mostly of the old series notes with a total of
$4 3 ,3 17 ,00 0 destroyed in 1930 and 155,135,000 in 1939*

Last year the

total destruction schedule amounted to $19,5 96,000 , the smallest amount
destroyed in any one year since 1918*

This may mean we should expect

a heavier proportion of our notes to be destroyed in 1932, but it is
more likely that many notes are stored in safety deposit boxes and not
being worn out through circulation*,

Of the notes destroyed in 1931

$ 4 ,4 7 7 ,1 5 5 consisted of the old series notes supplanted by the email
size notes in 19290

The amount of old series notes still unredeemed

on December 31 was $8,7S0,250«
The demand for $100 bills was quite noticeable in 1931o

More

demand for b ills in excess of $50 occurred in 1930 than last year with
total payments $6,39 2,000 in 1930 and $6*050,000 in 1931»

Of the

latter total $ 3 ,29 0 ,00 0 was in $100 b ills with most of the demand in
the last six months of 1931o

In our total issue of last year the per

centage of 5 8s, 10*s and 50cs increased and all other denominations
showed decreases compared to 1930 e
Our complete stock of new Federal reserve notes amounted to
$9 8 ,7 8 0 ,0 0 0 on December 31 of which $72,940,000 was held at Washington
With the possible exception of #10 and $20 b ills,
than ample for the next two years»

the supply is more

Our policy in withholding printing

orders until July next has been justified©

Orders for the preparation

of notes for one year from July next will amount to about $14,000 and
a similar expense may be in order for the year beginning in July 1933®
Present printing costs are $92e45 oer 1000 sheets but this price is
subject to revision by the Bureau of Engravingo

We made a substantial

reduction in our note expense of the past year and these costs should
not be high for some years to comea
In addition to the payments of new Federal reserve notes, we
issued other new currency as follows;

Gold certificstes $ 5 ,60 0,000;

legal tender notes $ 9 ,10 0,0 0 0 and silver certificates $13,380,000o
During the latter oart of 1931 payments of scold and silver certificates
were withheld j»s much as possible,




81

I5
WEU& m m n w m m m x o m
n

hum

xssrn a? m at m m

ay i m w M g a a g o ^ » 3 & .
TOTAL

Bit
YIt m
Tons
Twenties
Fifties
Etoadreds
Five Hundreds

$

Total

400,000
3.160.000
3.300.000
160,000

$ 9,600,000

$ 6, 000,000

$ 34,610,000

735.000
1,260,000
390.000
_________ *

3

6

m u

.

9.990.000
U ,980,000
876.000
1.360.000
390.000
636.000

0 0 Q

138,610,000

r a naM P 3T

H308XTSD F O
B tf

TOTAL
n ^ w a .w »

$

970,000
3.970.000
4.330.000
180,000
340.000
100.000
330-000
810,000,000

Five*
8 3,000,000
Teas
Twenties
8,000,000
Flftlss
1.400.000
Hundred*
6.300.000
Flfi Btiadrode
600,000
Thousands
X.OQO.OQQ
136,100,000
Total

10,000,000

B 3 0 3 IT 3 )

I 3,970,000
13.970.000
10.330.000
1,680,000
8,440,000
800,000
...x m w

8 36,100,000

IS8B3P TO BAIg

niuyoB-uaa
F1t «o
$ 6,380,000
Tons
9.360.000
Twenties
9.130.000
976.000
Flftlot
Hundreds
3,1000000
366.000
Fire Hundreds
Thousands
___ w > m .
138,870,000
total

$

960,000
6.370.000
6.330.000

380.000
190.000

100.000
290-000
$13,310,000

TOTAL
$ 6,340,000
16,660,000
14,340,000
1.366.000
3.390.000
466,000
1.040.000
$ 43,180,000

n HMP6 0? k m nacaoBB a .
s

ns=is&m

m
Fiyis
$6,830,000
Tans
7.660.000
Twenties
6.660.000
fifties
1,160,000
Hundred*
3,360,000
FIto Hundreds
636.000
Thousands
876.000
Total
i 36,840,000
$

I , 410,000
850,000
1,300,000
60,000
60,000
none
-___ 30.000
8 3,690,000

TOTAL
*

6,330,000
8 4X0 000
7.860.000
1 300 000
3.400.000
036,000
90S 000
$ 38, 630,000

aaio oy xsgcs w m X B m m

0

§



:
lOoflT
39o91
43*83
So58
4o99
S 63
o
JLM
XOOoO#

22&
26c Op
3409
33c 1

1*6
S 2
o

03
—V ?,

H
8
O
&

1931
Fives
14,79*5
Tons
36.87
Twenties
34.00
Fifties
3< 98
>
Hundreds
7,80
FIto fiuadreds 1.10
Thousand®
. 31,M

1938
38ol£
36o7
30o9
l »6
3d
«3

1937
1936
1935
35o4£ 30*8$ 39o9$
3705
39.1
27o3
33,3
33o3
S0o9
S4
o
. 407 '
lo3
3o4
S 6
o
4o?
o3
oS
ol
nI
M MJit ^ L 1
U lf

lOOoOg I00o *
0

I00o ^
0

1934
31.9$
37,1
39.3
3.3
So 5
14

lOOoO? 100*0$

82

m m & s m m ism tarn w m i
c q g im r m bt moths 1927-1931

1S2L
Jfcooary
February
March

April

May
June
July
August
Septecber
October
Soveaber
Daoanber
Total for
Tear

im

iS2SL

122.

1931

$ 1,490,000
1,410,000
3,330,000
3,704,000
1,170,000
3,865*500
4,950,000
i,as,ooo
4,800,000
5,715,000
3,330,000
3.83&0C&

$

660,000
3,300,000
3,495,000
3,706,000
3,850,000
3,855,000
1,985,000
3,480,000
4,735,000
6,630,000
5,710,000
3.620.000

$ 3,540,000
3,610,000
5,835,000
3,330,000
3,780,000
1,560,000
8,165,000
9,410,000
8,775,000
17,375,000
4,339,000
7.315.000

$ 1,590,000
8,813,000
3,700,000
3,500,000
1,050,000
1,350,000
900,000
3,640,000
4,085,000
3,075,000
3,300,000
7.050.000

$ 1,150,000
750,000
1,940,000
3,000,000
1,765,000
3,315,000
3,465,000
4,345,000
6,130,000
7,815,000
4,335,000
_
7^370.000

$36,694,500

$40,015,000

$73,754,000

$39,053,000

$43,180,000

1930

1931

m m 8363878 30735 35373073? &
gA3HIEagOS

oo&t&xnn at taaraas 19 3 7 -19 3 1
1937
January
February
March
Apr11
May
June
July
August
September
October
Boveaber
December
Total for
Tear




im

m

$ 2,840,400
3,383,300
3.197,885
1,990,660
1,937,300
1,839,050
1,465,150
1,960,500
1,793,850
1,443,000
3,580,350
1.653.000

$ 3.600,300
3,373,100
1,611,600
3,390,366
3,163,300
3,447,800
3,695,660
3,053,800
1,868,060
3,034,300
3,863,880
1.803,060

$ 3,435,600
2,037,350
3,431,650
1,974,360
2,939,350
1,189,000
3,251,350
5,783,050
4,513,760
17,659,900
6,364,700
4,886.000

$ 6,346,100
11,433,018
4,187,800
4,535,350
3,296,750
1,953,660
3,987,100
1,938,100
1,734,900
3,615,200
1,687,100
1.603.400

$ 2,363,350
1,436,000
1,766,985
1,530,100
1,567,750
1,173,600
1,363,800
1,426,350
1,649,100
1,494,860
1,905,160
1.530,350

$33,970,335

136,808,035

$65,134,960

$43,317,266

$19,696,995

H D « * t 3363873 30CT8 183030 ABB

mmtw row tmmtmai
*
I*«tw4
to Bank

1914
1916
1916
1917
1918
1919
1920
1931
1923
1923
1934
1925
1936
1937
1938
1939
1930
1931
Total

Destroyed at
TaeMnjrton

360,000
13.743.000
9,880,000
43.330.000
67.140.000
39.990.000
99.460.000
39.366.000
43.360.000
40.306.000
53.030.000
44.330.600
46.703.000
36.694.600
40.016.000
73 754 000
39.062.000
000

0
0
S95.963
8,988,095
9,431,540
36,771,805
40,766,785
49,748,580
33,784,390
37,330,330
38,173,395
30,108,555
31,835,950
33,970,335
36,808,033
55„ 134&950
43,3179365
-«LSes98S

$ 700,380,000

$ 466,B41o690

83

ISSUE, KEISS03 ABB D2STEOOTICB 07 ZBDZBAL 5XSXRTB B03ES
gffia opanao qt bask as or paCBtBSH a . 1931.

Received from
Controller

Hst'ornaa to Ag**t
Sr.&sfe....
$ 30,970,000
58,920,000
58,620,000
4,430,000
5,990,000
1,200,000
...._2*S»*ooo.

Total

$ 566,360,000

$ 199,370,000
240,680,000
232,620,000
15,830,000
27,190,000
4,600,000
8.520.000

I 163,450,000

$ 168,400,000
flrei
Tens
181,760,000
Twenties
174,000, 000
Fifties
11,400,000
Hundreds
21,200a000
Fire Hundred*
3,400,000
Thousands
..... 5,309,.SSL

$ 728,810,000

ISSUE) 50 BAM
nt-for-~u*8

J&s*
Fives
Teas
Twenties
Fifties
Hundreds
Fire Hundreds
Thousands

..M s L .

$ 30,560,000
58,070,000
57,320,000
4,380,000
6,940,000
1,200,000
...3.m.ooo

$ 193,140,000
232,270,000
224,760,000
14,630,000
23,790,000
4,075,000
7.615.000

$ 539,520,000

Total

$ 162,580,000
174,200,000
167,440,000
10,250,000
17,850,000
3,875,000

t 160,760,000

$ 700,280,000

.p s3T R sm .M .m m s9m .
Betumed

Returned T y
3
asmuaDtt—.

Betumed f y
c
M&BBSSB2U&

Betumed V
Total

yiYe»
$ 4,260,000 $ 3,901,730
Tens
2,545,000
4,469,060
3.698,800
Twenties
1,020,000
Fifties
25,000
230,050
Hundreds
30,000
316,100
fire Hundreds
none
47,600
Thousands
none ____ i L m

$ 78,820,500
76,075,000
69,685,500
4.498.000
6.236.000
1,414,500
JL 3P .000

$ 67,375,380
70,263,740
.71,460,300
3,091,850
4,877,100
431,500
_ S9?,oog

$ 154,357,610
152,352,800
135,054,680
7,844,900
11,459,200
1,893,500
2.679.000

$ 7,880,000 $ 11,740,370

1 227,739,500
1

$ 218.3181,>820

$ 465,541,690

Total

In hands of
.Agent
m
?ive*
Tens
Twenties
Fifties
hundreds
Fire Hundreds
thousands
Total




Outstanding
Peotnher 31. m

$ 6,230,000
8.410.000
7.860.000
1.200.000
3,400,000
525,000
905,002

$ 7,813,390
300897,200
31,035,330
2r355,100
60340,800
931,500
1,716,000

$ 28,530,000

$ ?10289,310

84

FISCAL AGSNCX fUKOTXOHS 1931
Issues* redemptions or exchange* of various United States
Goversaenc securities^ including Treasury Savings Certificates redeem
ed at this o ffice.. which were handled by the Fiscal Agency operated
by us for the United States Government, numbered 41.808 pieces and
amounted to |>138v451 775oC0 as compared with 34,044 pieces amounting*
*80>4?5: 397.75 in 1930,
This Agency also handled during 1931^, 4*692 orders for the
purchase a£ Government securities and 9,328
curities totaling $99j,608k150a

sales of Government s e ­

In addition* either delivery or payment,

or both: was handled for banks and trust companies on 320 transactions
in Government securities amounting to $74 9321p900

There were also 621

transactions of miscellaneous general market securities aggregating
4 $ *525{,3 0 0 /

Altogether of these various transactions there were 14,959

totaling #180^455^350

including those for our own account as compared

with 13,365 totaling $168y787p0~0 in 1930
Delivery of 4 3 9143 pieces totaling $94„297,700 was made on
purchase and resale transactions for other than our own accountc

In

additiony on exchange transactions, such as denominational exchange*
the exchange of coupon for registered securities^ etc , 2 4 p523 pieces
were delivered amounting to #49s7484550o

The total number of pieces

delivered was 6T9665 amounting to $144,046^350 in comparison with
52,435 totaling $89^744,550 during the preceding yeart
With the exception of Treasury bills

there were ten offerings

of United States Government securities during 19310

In such operations

3^ 737 individual subscriptions contained in 1,283 different applies
tions were received in this districts
eoriptions was #49^309 y 5 0 «
B
.

The amount allotted on these sub

During 1930 there were five similar offer ­

ings and $12,162 000 was allotted,
During 1931s 65 tenders amounting to #16*572,000 were received
by this Agency on 29 offerings of Treasury bills ,

Of these, 15 tenders

for Treasury bills ranging from ,51$ to 2 47$ and amounting to
$ 9 ,3 1 5 f000 were accepted^

During 1930, 6 tenders totaling $116^000 were

accepted on the 8 offerings of Treasury bills made that yea*o




85

FISCAL AGENOY FUNCTIONS

(Contd)

Including the weekly circular giving current market quota
tione on the various outstanding government issuesi 107 circular
letters were sent to all banks and trust companies in the district
during 1931 in connection with fiscal agency operations*

During the

preceding year there were 81 circular letterso
In June3 the Secretary of the Treasury announced that all
3^

Treasury Notes of Series 0**1930 32 of which there were then about

1*451,000,000 outstanding, were called for redemption on December 15,
1931 o
At the close of the year there were 285 banks and trust
companies in this district which were designated as special deposi­
taries of public moneys^ thereby being qualified to make payment through
their War Loan Deposit Accounts on a by credit basis for subscriptions
to new offerings of Government securities* with the exception of
Treasury bills*

This is 105 more than the number of banks so designated

at the close of the preceding yearo

During 19319 the rate of interest

to be paid on daily balances in the War Loan Deposit Accounts by Special
depositaries was reduced from l^jt to

per annum0

The Fiscal Agency operated by us for the Government redeemed
481,534 Government and Federal Land Bank coupons amounting to
# 7 ,6 3 9 ,163c04 during 1931 as compared with 534,226 coupons amounting
to # 9 ,2 7 4 ,5 ^ 3 ,9 6 during 1930c
REIMBURSABLE EXPENDITURES
ACCOUNT FISCAL AGENCY OPEBATtOMS
The Treasury Department reimburses us only for expenses in«
curred in connection with new issues of

Uo

So

Government securities*,

All other costs of our operations as Fiscal Agents of the United States
are absorbed by the bank,

Tke following table shows the expenditures

for which we received reimbursement during 1931 and 1930o
figures are not included in our statement of expenses,,
1931
Salaries - Officers « . . • • o #5,00dc00
..Salaries - Employees o 0 » 0 o 9 ,766,87
Printing^Stationery < Office
&
Supplies o 3 f556o39
517o15
Telephone o a o o o o o o o o
184087
Telegraph o o o o o o o o a o
807o00
Po stage o o a a o o a o o o *
0
All Other o o o o o s o o o o




*19,832.28

These

1930
$5758^00
9,572*00
2,190o30
246o85
115oll
927 050
2o50
#18,054.23
86

iaaaxswuriai
t a t « of
Qffleara

M W .
$ 4,393059
4,299o68

86
85

Tur 1931
Toar 1930
Monthly Arorago
Tear 1931
Toar 1930

■
rar.WHOii

JSBSSiSn *
tartar of
2 M stjhol

2021
3o09

$ 3,312,06
3, 175a59

lo03
lo03

$ 7 .589c 06*
7«446e 15**

367.67
264o63

357o80
358o30
CSLSQBAPB

$

633o42
620o51

w m m m m ^w sn m

BA&

Btnfoor of

ffaobar of
JtoSlazfiSE.

acponio

tartar of

ftM&or o f

f
I
2o 35
So38

Toar 1931
Yoar 1930

$ 1 6 ,6 4 1 .3 4

Monthly Arorago
Toar 1931
Toar 1930

8 .3 1

1 6 ,3 9 9 .6 3

9 .3 7

$

$

1 ,3 0 3 .4 4

$

8 ,7 6 9 .0 6

3 .0 9

9 ,6 3 6 .6 6

1 . 8 1

3 ,3 0 0 .6 0
3 ,1 7 4 .9 6

$

7 3 0 .7 6

1 ,3 8 3 .3 0

t
M m n si
tartar of
aotaraoa
zasaaaa

3 7 6 .0 8

7 9 3 .3 9

m m j& m
Jftttb r of
o
2toloyooa
3a>onto
3o57
Soil

Toar 1931
Toar 1930

$

4 ,3 4 6 .3 6

3 3 .9 8

3 ,7 8 6 .6 6

Monthly Arorago
Toar 1931
Toar 1930

3 6 3 .3 0

Jspohool

Monthly Aroraga
Toar 1931
Toar 1930
m

aw

4o00
4o00

$

4 .6 3

3 ,0 7 3 .8 1

$

3 ,3 1 3 .5 9
3 ,4 3 3 .8 3

$

3 6 7 .8 0
3 8 6 .0 7

T A S JL ?JIA X S T O U H C B

Itaabor of
anoloyooo

6 ,1 3 9 .6 7

3 .3 3
3 .6 3

$

su p n
n o a®
6 ,0 1 9 .6 0
3 ,9 4 3 .6 3

$

6 1 1 .6 4

4 1 8 .3 3
3 3 8 .6 5

6 3 7 .3 7

S I O T O S H iP H I O

tartar of
__ ............................ ................... s

$ 5,936o34
5 ,846o 55
$

4 . 1 1

h s c q r d s

Sxsoaao

iiM lO T O M

Monthly Arorago
Yoar 1931
Toar 1930

$

3 0 7 .0 7

s s

snaaaa

t o o s

6 ,4 4 7 .1 8

3 .3 1

tasbor of

2b d 1 o

3 6 ,8 8 6 .7 6

B3PAIBS
Sartor of
S m U y oo§
J&bo&m
3 .3 0

3 1 7 .9 7

a

tartar of

3 ,7 3 1 .3 4

3 ,6 1 6 .6 3

$

m

Toar 1931
Toar 1930

$

3 ,4 8 4 ,8 7

8

$

8

HH
o o

Toar 1931
Toar 1930

$

3 1 6 .6 6

J O T O W O T IX ^

3 6 4 .6 8

3 3 ,7 7 6 .0 6

1 9 .8 6

$

taabor of
SoDloyooa

a n g « L . . —

$ 12,010.64
13,968 34

6 45
7o66

AO
0
5
487.31

1,000 89
1.164.03

AOA

* Toll ohargaa distributed to various axpaaaa unit*
** Toll oliargaa distributed to various aipaaaa units




$

$1,663.39
1,014.80

I

87

.
.

FEDERAL RESERVE CLUB
The Federal Reserve Club continued the activities of prior
years during 1931 and in addition organized an inte^department Dart
League, a Rifle Club and a Basketball team,

membership in the Club

is 100$ and all activities receive enthusiastic support,
Club educational activities were confined to the encourage­
ment of attendance in Night classes of the American Institute of
Banking and the University of Minnesota

Refunds of tuition fees

for business subjects applicable to Banking were made in full for
courses taken at the Ac I a B> or the University of Minnesota

Under

a ne* ruling of the Federal Reserve Board, educational refunds will
be made direct by the Bank to the employees rather than through the
Club
The Club promotes a variety of athletic sports, with go11
the most popular activity

Five sweepstakes tournaments and an annual

golf tournament were held during the year,
Social activities held during the year included two theatre
parties

the annual picnic, a barbeque and dance, a Christmas program

and dinner party and other features<
>
Dolls and toys ^sre again purchased f~r the poor children
yf the city from the proceeds of a collection taken fro*a the officers
and employee So

The dolls were dressed by the girls of the b;:jik ar.d

the wives of the men employees .

After our Christmas party the dolls

and toys were turned over to the family Welfare Association for dis­
tribution*
Club activities have aided in securing a better spirit of
cooperation between departments .
The budget for the 1933 Club activities is as fallo w s




Athletics
Welfare
House Committee
Girls Activitieks
Contingencies

$

535*00
l~5oOG
1 , 8 ” 00
*5o
3?go0*
j
__ £00. 00
$ 3 ,3 5 0 o00

88

FEDEKAL hSSShVB SANK Ei£PLQjfES9 : CfiEPIT UNIQ
lj
On April first the Federal Reserve Club Savings Fund was
dipcontinued and its assets and liabilities assumed by the present
savings society called the Federal Reserve Bank Employees

Credit

Union,, which is operating under a charter granted fi oy the Minnesota
State Superintendent of Banks
There were 104 members with deposits of $3 0 r657 15 at the
time of the transfer

Membership in the transferee organization has

grown to 229. with shares, deposits and Christmas Club Savings total
ing $33,358 58

Its by la»s were amended in September so that the

Helena Branch staff ^ould be eligible to join this new saving« as
?
eociatior> Twenty^six of the thirty-one then employed at the Branch
applied for admittance *nd were promptly arnl gladly accepted as fell *
?
Credit Unionists
The primary purpose of a Credit Union is to encourage syete
matic thrift among its members and it is felt that the aforementioned
increase in number of members and savings speaks for itself,
Deposits of members may be invested in securities approved
by the state Banking Department as desirable to secure trust funds and
savings deposits* or loaned to members for provident and productive
purposes at a legitimate rate of interest.

At the present time the

assets offsetting the deposit liabilities are composed of $30.000 CO
of United States Fourth Liberty Loan Bonds, $9 889 30 personal loans,
$ 4 ?440 00 in three first mortgage real estate loans on homes, and the
remainder in depositary banks

Loans are repaid on either a monthly

or a semi- monthly basis.
Interest at 4jt? compounded quarterly

was paid on deposits

during the year and a 3$ dividend declared and paid on paid-up shares
outstanding as of December Z l9 1931

At the December meeting of the

Credit Union^s Board of Directors a new plan of operation wag adopted
This plan effective January 1, ia.33w requires that each member own
only a $5 00 qualifying share and that all other moneys left with the
Credit Union be carried in the deposit account




Under this design each

89

FEDERAL RESERVE BANK EMPLOYEESy CREDIT UKIOK

(Contd)

and every members deposited dollars will receive equitable treatment
in the matter of distribution of earnings and the clerical work of
the Treasurer will be substantially reducedo
Information has been recently furnished by the Minnesota
representative of the National Credit Union Extension Bureau to the
effect that the growth and success of the Federal Reserve Bank of
Minneapolis Employees8 Credit Union stands unique in the history of
Credit Unions in the United States**

The record for its first nine

months of operation has, it is believed, justified the change to the
Credit Union piano

It will undoubtedly continue to contribute greatly

to the economic welfare of its membership which is composed of the?
majority of officers and employees at the Head Offtee and Helena Branche

RESOURCES
Cash and Due from Banks
Real Estate Loans
Fourth Liberty Loan 4 i
£$ Bonds
Loans
Interest Accrued on Loans & Investments

#

18^31-31
£s&40 26
4 ,4 4 0 o00
20F000a00
9 ,6 8 9 .2 0
6O6066

TOTAL RESOURCES » . . » ,
LIABILITIES
Shares
Deposits
Christmas Savings Club
Reserve Fund
Discount on Investment Securities
Undivided Profits
TOTAL LIABILITIES o „ • • .
Number of Members in FoRoBoEoCredit Union

$ I S , 553039
3 1 ,3 6 2 e69
443*50
330-95
179069
60So84
$ 3d, 378*66“
229

Number of Members in Christmas Savings Club

67

Number of Borrowere-FoRoBoE* Credit Union

91




90

WELFARE DEPARTMENT
Tie Welfare department s records for the year 1931 show we
have accomplished,

a email way, what we have been attempting to do

for the nast few years and that, is,

the importance of the employee

keeping himself always in good physical conditiono

We have had less

illness and fewer rutber of absences this year than any of the pre­
vious four years®

We have accomplished this by the aid antf advice

giver* within the bank, ax so by making calls in the home during the
illness of an employee-

The welfare department co-operates with the

Federal Reserve Club in every way* which helps to keep the soirit of
good fellowship that we have always maintainedo
Telephone
Year_____ C alls_______

House
Galls

Number employees
Services to employees
______absent__ ________male
- Fe?utle ___

IS 31

100

36

521

488

500

1930

125

30

550

688

534

Salaries
Medical Supplies
Outside iiedical Fees
Office Supplies
Local Transportation
All Other Exner.se

1931
1330
$ 1 ,8 0 0 ,0 0
$ l ,3 0 0 o00
530^0
96o?7
0
54o07
5o45
234 „00
i 'T ^ s r ^ a r

CAFSTSRIA
During 1931 we were able to operate the cafeteria within the
amount permitted by the Federal Reserve Board, which is one-third of the
gross expense®

The amount of expense absorbed by the bank In 1931 was

$4,323*15 or 31-8$ of the gross expense and in 1930 was $4,5*34<,76 or 31 3$
c o m p a r a t iv e c a f e t e r ia e x p a n se

1931
Salaries
$
660*00
Salaries-Oooks«Waitresses 5 ,3 0 1 c66
Service Supplies
507o49
Crlass, Oh ina^Furni shiners
7So0S
Gas Fuel
'
158*55
Cost of Food
6^843o34
Miscellaneous
^18o33
Less receipts
Net deficit.




9!233o30
JT"4 ,?.12015

1930
$ SSOoOO
5 ,2 4 3 &7B
5?0<,36
166035
173o08
7,?82.42
1°04
lolo31ol7
$~4 *564„7c

91

HLN BAC
EE A RNH
A brief review of our Branch operations is offered in this
report.

In discussing many of the functions we have referred to

consolidated figures besides which a separate report has been sub
V • ed aa usual by Mr* Towle, Managing Director at Helena
Like Minneapolis, the email turn over in help has resulted
in a greater number of employees familiarising themselver with the
general operations.

This is especially true at Helena with only 29

amployeee* the smallest number since opening

We are satisfied with

— • way' in which the different operations are conducted at Helena and
*5 e\ to lote that our total costs are lower at Helena than for any
olaer

’Tull power" branch.,

Some of the other Federal reserve banks

have "memorandum” branches but we could not operate under such a
plan.
On June IS* 1931 we made an examination at Helena and the
report to the Executive Committee indicated that operations were being
efficiently and satisfactorily conducted

The examiners from the

Federal Reserve Board also visited Helena on February 1? last and
another examination was started on January 5, 1832!
Total income for 1931 ha*; been J35 330*55 and $7,393^71 less
than the earnings of the previous year,

Total amount of paper die ■

counted during the year was *5 534 600,11 of which $3*803,100 was
represented by collateral loans
ed- only $3 ,0 1 5 ,0 0 0 of wl ich

In 1930 |4 033*193.,4Q was discounts
represented by collateral loans.,

Borrowing was steadier throughout the year than in 1930 but the
a/exage rate has been 3^ per cent compared to 4 U
365 per cent in 1930«
2io other source of revenue is open to the Branch apart from penalties
received on deficient reserves which were $940 during the past twelve
months
Current expenses were brought lower than for any previous
year since the Branch was* opened

The total expense of $38^506 3?

was |2^363o06 lees than in 1930 and $1,800 less than the estimated
budget for 1931.

For 1932 expenses are estimated at $86,755 aud it

is hoped the costs may be held to this figure.,




Helena is operating

92

HELENA BRANCH
with 3 less employees than one year age.

{Contd)
Work ie not uniform through

out the day, the late arrival of mail crowds the transit work into
a shorter period than formerly and prevents any further reduction in
the staffo

Alterations and repairs which have been necessary for

several years should be at a minimum in 1932

The change in location

and improvement to the bullet-proof fortress was the last item of this
character and helped make possible the elim*nation of an extra guard
Volume of most functions was reduced in comparison with the
previous year6

Less currency was received from city banks for deposit

and exchange purposes but $10,482,000 was deposited by country member
banks compare! to $7*738*000 sent in during 1930

Currency shipped

tc renaber banks and to non^member banks at the request of members
aggregated $11^441,0000

With the exception of currency sent Washington

for redemption and to other Federal reserve banks, the Branch paid out
$ 1 3 s838,000 compared to $14,977,000 In 133 0C

All coin received and

delivered during the year amounted to $ 1,30 0,000 with $1,43 3,000
handled during the previous yearo
In connection with currency operations $1^700*000 of our own
notes and gold was withdrawn from the Branch holdings on October 33
and turned over to the joint control of the Branch officers and three
outside representatives of the Agent, approved by the Federal Reserve
Boarde
Agent

This was done to reduce the amount of cover required with the
thereby increasing our available free golds

Notes are delivered

to the Branch on wire instructions from our Agent to the representa­
tives and the plan ie working smoothly*
There was a marked reduction in both number and amount of
the checks handled on member and non-member banks in Montana compared
to 1330

Such items aggregated 1 ,4 1 4 ,0 0 0 in number and amounted to

$99,0 58 ,00 0 for 1931, a reduction of Z^SyOQO items and Jlft^lSlyOOO
from the 1930 totals.

Items on other Federal reserve banks increased

from 88,000 in 1930 to 9 5 f000 for the past year, while the amount was
$ 3 ,3 0 9 ,0 0 0 in excess of the 1930 amounto

government checks paid at

Helens durir^ the year amounted to $39,"r07,000 comprising 318,000
item**

During 1930 we paid 174,000 items amounting to 519,990,000.,




HELENA BBANCH

(Clontd)

Tne total of all items handled through t rang it department during
the past year was 1 ,9 5 3,0 0 0 amounting to $353,43” ,000;,

All itemt

handled in 1930 numbered 3 ,2 37,000 for 5377,886,000
Safe-keeping facilities were further expanded during 1931,.
On December 31, 1330 securities held for member banks amounted to
$ 7 ,6 3 0 j000o

At the close of business December 31, 1931 this total

he,d been increased to $8,648^.000
Incoming wire transfers for credit of member banks amounted
to $ 6 3 ,1 2 8 ,00 0 , a decrease of over $ 2 ,30 0,000 from the preceding year
There were also 550 lest.- t ran stereo

Wire transfers of funds to other

points numbered 1,663 in 1931 an increase of 29 over 1330*

The amount

transferred was $40,634^000 or # 3,556,000 more than in 1930o

c ^ arative m m s m m mHLm m .
HBLSIA BRAHC5

Average
Hoa'ber
Of
Officers

1931
Average
ITaaber
Of
aaployees Asionnl




o
o

# 9,437*98
Oenlo Overhead-Controllable lo00
59031o07
OenloOverhead Hon-Controllable
6f4l6o97
Provision of Space
o05
1013
Provision of Pereonnel
. o05
661027
General Service
035
9o60 14,225 10
Poetage
3,239,00
Xnsnranoe
3,452o95
failed Banks
loans, Eedieconnts & Acceptances „32
2,3180 77
o28
Securities
o69
ol5
3,997o60
Currency and Cola
029
2odl
8 ,258o13
a25
Check
7o40 13,382o84
H a-Cash Collection
e
o05
lo74
3,930*34
icconnting
o!9
3057
12,890066
Fiscal Agency
Legal
635o00
inditing
ol9
1|907093
o30
Bank Halations
34o50
Sank Sxaalnations
335o58
Statistical and Analytical
_
!51o 65
Grand Total
37,57 MB. 308,43
2o79
Total Current Expense
$880506o37
Stook of Supplies
_ 799o06
$890305o43

Average
Stam
ber
Of
Officere
loOO
olO
oOb
*33
o05
022
ol5
o20
olO
ol4
22
o27

2082

1930
Average
bomber
Of
Officers

iacmnt

$ 9,468,17
4,612*40
loOO
8,991.34
<0
>4
6v3.83
14,3 4,48
903€
3, £13.13
3,470a00
oU7
477„93
o08
1,703. 38
o67
3,801.11
2d82 :
7,613.84
8«21
13,001.93
lo78
4,479.13
14,806.93
4014
o01
30.00
1,300,00
.17
1,933,77
30.90
398.13
.......134.80
28n35 19LJS70.S7
$ 90,869.43
_ _ „ wj40j
^^^!
$ 91,370.87

94