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EIGHTEENTH ANNUAL REPORT
of the

FEDERAL RESERVE AGENT
of the

NINTH FEDERAL
RESERVE DISTRICT
to the

FEDERAL RESERVE BOARD




Covering the Calendar Year
1932

Federal Reserve Bank of Minneapolis,
Office of the Federal Reserve Agent,
Minneapolis, Minn., April 8, 1933.
To Governor Eugene Meyer,
Federal Reserve Board,
Washington, D. C.
Sir:
In conformity with our custom, I have the honor to submit herewith the Eighteenth Annual Report of the Federal
Reserve Agent of the Federal Reserve Bank of Minneapolis
relating to operations during the twelve months which ended
December 31, 1932.




Respectfully submitted,
CURTIS L. MOSHER,
Asst. Federal Reserve Agent.

REPORT
OF THE

FEDERAL RESERVE AGENT
AT MINNEAPOLIS

1932
A.

BUSINESS, AGRICULTURAL AND BANKING
CONDITIONS
Business

The year 1932 divides naturally into two periods. The
first seven months of the year were adversely affected by the
disastrous crop failure of 1931, in addition to sharply declining
prices and a reduced volume of business throughout the country. In the last five months of the year, business was favorably influenced by the harvesting of a normal crop and by a
check to the downward movement of prices and business
volume. These favorable influences made possible a moderate
revival in some lines of trade and checked the shrinkage in
other lines. Typical of the movements of business volume
during the year were bank debits and freight carloading
statistics, for which index numbers adjusted to remove seasonal fluctuations have been computed. The bank debits index
declined from 67 to 55 between December 1931 and July 1932.
From the latter month to the end of the year, the index declined further to 48. The miscellaneous freight carloadings
index declined from 72 in December 1931 to 52 in July 1932,
and then rose to 59 in December 1932. The index of 1. c. 1. carloadings declined from 80 in December 1931 to 64 in July
1932, and then after only minor fluctuations, it closed the year
at the July level.
The grand total of trade and industry in the district during 1932 was the smallest in a number of years. Bank debits
at 94 cities totaled $6,887,000,000 in 1932, as compared with
$9,300,000,000 in 1931 and $13,697,000,000 in 1929, which was
the last year before the depression. Freight carloadings in
the northwestern district, excluding 1. c. 1. freight, were 2,277,000 cars in 1932, as compared with 3,428,000 cars in 1931, and
5,764,000 cars in 1929. Shrinkages also occurred in electric
power consumption, country check clearings, building contracts and permits, flour production and shipments, linseed
products shipments, copper and iron ore output, wholesale and
retail trade, life insurance sales and securities sales. A salutary feature of the trade returns was that both merchandise
stocks and accounts and notes receivable were reduced during
1932 in line with the reduced volume of business and in spite
of the reduced debt-paying power of the district. Business
failures totaled 928 in 1932, as compared with 867 in 1931,
according to reports from R. G. Dun and Company.
B. Agriculture
Farm income from cash crops and dairy products, hogs
and wool as estimated by the Federal Reserve Agent was 34
per cent smaller in 1932 than in 1931, following a 37 per cent



decrease in 1931 as compared with 1930, a 21 per cent decrease
between 1930 and 1929, and a 10 per cent decrease between
1929 and 1928. Farm income in 1932 was smaller than in any
other year since the records began in 1923. More complete
figures for Minnesota prepared by the Agricultural Economics
Department of the University of Minnesota indicate that for
that state, 1932 gross farm income was the lowest since 1912.
The net cash income of Minnesota farmers, after deducting
fixed charges and operating expenses, was the lowest in the
record, which extends back through 1910. Decreases in the
farm income of the district between 1931 and 1932 occurred
in all products for which we have estimates, with the exception of rye. The smallest percentage decrease occurred in
bread wheat, for which the larger crop partly offset the lower
price prevailing. Prices of all important farm products of the
Northwest, with the exception of eggs, were lower at the close
of 1932 than a year earlier.
The harvested acreage of 1932 crops in the district increased by 9,000,000 acres over the acreage harvested in 1931.
The large increase was entirely due to the fact that the 1931
harvested acreage was abnormally low on account of abandonment of acreage. The 1932 harvested acreage was approximately the same as that of the years 1930 and 1929. Shifts
in acreage from one crop to another were relatively small in
1932. There were minor reductions in the acreage of flax and
tame hay, and increases in the acreage of wheat, rye, potatoes,
corn, oats and barley. Most of these increases over 1931 were
due, as stated above, to the smaller abandonment of planted
acreage in 1932.
Good crops, but not record-breaking crops, were harvested
in the district in 1932. The crop of oats was the largest since
1925, the crops of wheat, potatoes, barley and tame hay were
the largest since 1928, and the crop of corn was the largest
since 1929. The flax crop was the smallest since 1922, with
the exception of the 1931 crop.
Wheat marketings in the first seven months of 1932 were
abnormally small on account of the crop failure of 1931 and
the small carry-over from the preceding crop. The carry-over
of wheat on farms and in country mills and elevators on July
1, 1932, was less than 10,000,000 bushels, which was an exceptionally small amount. However, the large crop which was
harvested in the fall of 1932 caused a volume of marketings in
the latter part of the year nearly twice as large as marketings
in the same portion of 1931. In spite of the size of the wheat
movement, an abnormally small percentage of the marketable
wheat supply of the district had arrived at terminal markets
by the end of December. The explanation for the slow rate
of marketing lay chiefly in the low price of wheat and the
large number of seed liens against the 1932 crop, which hindered many farmers from marketing their wheat. Also a
considerable quantity of wheat which was included in the
Government crop estimate, was not threshed. A very large
percentage of the crop was probably used on the farms for
feed. Moreover, there was reason to believe that country




mills were buying a larger than usual portion of their wheat
supplies from local sources in 1932 instead of purchasing out
of terminal elevators. This was due to the uniformly high
quality of the 1932 crop and the low wheat prices which made
it possible for the country miller to compete advantageously
with the city mills. Although country elevator holdings of
wheat were larger at the close of 1932 than a year earlier,
there was no congestion during the heavy marketing period
in any part of the district.
Livestock marketings at South St. Paul during 1932 were
smaller than in 1931 for all kinds of livestock. On January
1, 1933, the Government estimates indicated an increase during the year in the number of dairy cows and heifers and sheep
on farms and a decrease in the number of hogs on farms.
Decreased pig farrowings as indicated by the December 1 pig
survey, coupled with the reduced number of hogs on farms,
denoted a considerable decrease in hog marketings in our territory for 1933, as compared with 1932.
Cold storage holdings of farm products in the United
States on January 1, 1933, were lower than a year earlier for
all important products. Stocks of butter were the smallest for
January 1 in the entire ten year period for which records are
available.
The farm real estate situation continued to grow less
favorable in 1932. Involuntary sales of farm land during the
year ending March 15, 1932, exceeded voluntary sales in all
states of the district. Farm land prices continued to decline
in all states. The real estate holdings of country banks
remained nearly unchanged during 1932.
C. Banking
The banks of the district experienced a sharp decline of
$221,000,000 in deposits during 1932. At the close of the year,
their combined deposits were $1,089,000,000, which was the
smallest total since 1916. The major portion of the decline
in deposits during 1932 was offset by a decrease in loans of
$139,000,000 to a total of $560,000,000, which was the smallest
figure in the past twenty years for which records are available.
Investment holdings decreased $68,000,000 during the year;
cash and balances due from banks decreased $9,000,000; and
borrowings from other banks and institutions increased
$16,000,000.
The city banks fared relatively better than the country
banks during 1932. City banks lost only $46,000,000 of
deposits, or 11 per cent of the total which they held at the
beginning of the year. Country banks lost $175,000,000, or
20 per cent of their deposits at the beginning of the year.
At the city banks, cash and balances due from banks increased
by approximately the same amount as their investment holdings declined, and the entire deposit decline at the city banks
was offset by a decrease in loans. Borrowings by city banks
declined to practically nothing during the year.
Interest rates charged by Minneapolis banks decreased
during the first four months of 1932, increased during the sue-




ceeding three months and then declined during the remainder
of the year. The average rate charged on prime loans was
slightly lower in January 1933 than in January 1932. The
commercial paper rate on prime paper reported by a Minneapolis broker was 1%, per cent at the close of December 1932,
as compared with 4Vk per cent a year earlier.
Bank failures during 1932 were only 136 in number, as
compared with 271 in 1931, 156 in 1930 and 84 in 1929. The
decrease in the number of failures in 1932 was largely the
result of the establishment of the Reconstruction Finance
Corporation. The deposits involved in 1932 bank failures
amounted to $27,899,000, as compared with $57,448,000 in
1931, $24,109,000 in 1930 and $15,300,000 in 1929. During
1932 numerous banks in the district declared moratoria on
payments to creditors for varying lengths of time. During
the moratorium period, agreements were reached for the
waiver of immediate payment of deposits, the waiver of a
portion of the book value of unsecured deposits, or a combination of these methods of enabling banks to continue in business. The number of banks in operation in the Ninth Federal
Reserve District, according to abstracts of condition reports
published by state and national authorities, decreased during
1932 from 1,816 to 1,658.

A.

OPERATIONS OF THE MINNEAPOLIS FEDERAL
RESERVE BANK IN 1932
General Survey

The earning assets of the bank rose sharply during 1932.
After dropping from $43,500,000 at the end of 1931 to
$38,000,000 in April 1932, they rose to $46,000,000 on May 18.
In the next week, the bank's holdings of United States Government securities increased materially, raising total earning
assets to $60,700,000. Earning assets reached the year's peak
of $69,300,000 on August 3. In the later months, the volume
fluctuated moderately and closed the year at $65,500,000.
During the entire year, the greater part of the earning assets
consisted of United States Government securities. Purchased
bills decreased from $7,000,000 to less than $1,000,000. Discounted bills for member banks fluctuated between $9,000,000
in March and more than $14,500,000 in February.
Country member banks were borrowing somewhat more
from this Federal Reserve Bank at the close of 1932 than a
year earlier. The funds loaned in this district by the Reconstruction Finance Corporation and the Regional Agricultural
Credit Corporations of Minneapolis and Sioux City were partly
responsible for the smallness of the increase in borrowings
from this bank. Increases occurred in the borrowings from
this bank by banking institutions in all parts of the district,
the largest dollar increases being in rural Minnesota and South
Dakota. City member banks were almost entirely out of debt
at the Federal Reserve Bank at the close of 1932. Utilizing
the new powers granted by Congress to make loans to individuals and corporations other than banks, the Minneapolis Federal Reserve Bank had $98,000 of such loans in its portfolio
at the close of 1932.




Discounted Bills Held by Minneapolis Federal Reserve Bank
(000's omitted)
Dec. 31,
For Banks in
1932
Minneapolis and St. Paul
$ 20
Other Minnesota
2,679
Montana
1,043
North Dakota
1,404
South Dakota
3,072
Wisconsin
672
Michigan
616
Federal Intermediate Credit Bank of
St. Paul
0
Individuals and Corporations
98
Total

$9,604

Dec. 31,
1931
$ 51
1,458
879
652
1,564
590
516

Dec. 31,
1930
$
0
712
373
767
1,295
285
144

1,861
0

0
0

$7,571

$3,576

Federal reserve notes in circulation declined only slightly
during January and reached the lowest point of the year at
about $67,500,000 on January 27. After that date, there was
a steady increase in Federal reserve note circulation until it
approached $82,000,000 in October. Subsequently, it declined
moderately and closed the year at $81,000,000. The net
increase in currency in circulation can be attributed largely
to hoarding, since the volume of business and the price level
declined during the year, making currency requirements for
business purposes smaller than in 1931. A portion of the
increase in currency circulation was undoubtedly due to other
factors, such as the Federal check tax and the greater prevalence of service charges on checking accounts, which caused
many depositors to make a greater use of cash in settling
their bills.
Member bank reserve deposits fluctuated somewhat with
the seasonal movement of the total deposits of member banks
in the district and showed a net decline for the year, reflecting
the lower level of deposits at member banks.
The cash reserves of this Federal Reserve Bank increased
during the early part of the year to nearly $81,000,000 in
May. Thereafter, cash reserves decreased to a low point of
less than $53,500,000 in August and then increased to $59,000,000 at the close of the year.
The net effect of these changes upon our balance sheet
for the year ending December 31, 1932, was as follows: Cash
reserves decreased $21,000,000; bills discounted increased
$2,000,000; bills bought in the open market decreased $7,000,000; United States security holdings increased $27,000,000;
total earning assets increased $22,000,000; Federal reserve
notes in circulation increased $12,000,000; member bank
reserve deposits decreased $8,000,000; and the ratio of total
cash reserves to deposits and Federal reserve note liabilities
combined decreased from 67.1 per cent to 49.2 per cent.
This bank did not borrow from or lend to any other
Federal reserve bank during 1932.
The discount rate of this bank remained unchanged at
31/) per cent throughout the year.



7

B. Earnings and Expenses
The gross earnings of this bank during 1932 were $1,435,000, as compared with nearly $937,000 in 1931. Increases in
earnings from discounted bills, United States securities and
deficient reserve penalties more than offset decreases in earnings from purchased bills and miscellaneous sources. Current
expenses during 1932 were $927,000, as compared with $919,000 in 1931. Current net earnings during 1932 were more
than $508,000, as compared with $18,000 in 1931. Miscellaneous additions to current net earnings in 1932 amounted to
$84,000 and deductions from current net earnings amounted
to $320,000, including $200,000 added to the reserve for probable losses, leaving final net earnings available for dividends,
surplus and franchise tax of $272,000, as compared with
$46,000 in 1931. In 1932 dividends totaling $175,495 were
declared, at the rate of 6 per cent per annum, on all paid-in
capital stock, and paid to member banks. The surplus account
was increased by $9,684, and a franchise tax was paid to the
United States Government amounting to $87,158, whereas
no franchise tax was paid in the preceding year.
On December 31, 1932, a transfer to the surplus account
was made from the reserve for depreciation on United States
securities of $653,000. This amount had been charged to surplus and credited to that reserve account on December 31,
1931. This, together with the small transfer to surplus from
current net earnings, increased the surplus account from
$6,356,250 to $7,018,935.
C. Departmental Statistics of Volume (Including both the
Head Office and the Helena Branch)
The Transit, or Check Collection Department handled
18,743,000 items during 1932, amounting to $2,907,272,000, as
compared with 20,940,000 items during 1931, amounting to
$3,559,161,000.
The Collection Department received 798,000 items (including coupons other than those on Government issues) during
1932, amounting to $155,121,000, as compared with 574,000
items during 1931, amounting to $170,818,000.
The Currency Department received and counted 36,088,000 bills, amounting to $163,224,000 in 1932, as compared with
38,088,000 bills, amounting to $186,519,000 in 1931. This
department also received and counted 24,788,000 coins, amounting to $3,391,000 in 1932, as compared with 22,528,000 coins,
amounting to $4,321,000 in 1931.
The Vault Custody Department in its service of safekeeping of securities, received from or returned to member
banks 149,215 bonds during 1932, as compared with 128,743
bonds during 1931. This department cut and forwarded to
the owners of the securities, or turned over to other departments for collection or credit, 214,133 coupons during 1932,
as compared with 233,186 coupons during 1931.
Transfers of funds made for member banks, including




those made for the 5 per cent Redemption Fund, numbered
47,800, totaling $1,714,979,000 during 1932, as compared with
53,000, totaling $2,508,381,000 during 1931.
The Discount Department served 333 member banks during 1932. In 1931, 266 member banks were served. During
1932, 29,124 notes were discounted, amounting to $145,522,000,
as compared with 13,914 notes, amounting to $50,292,000 in
1931.
FISCAL AGENCY FUNCTIONS
Issues, redemptions, or exchanges of various United
States Government securities, including Treasury Savings
Certificates redeemed at this office, which were handled by
the Fiscal Agency operated by us for the United States Government, numbered 47,664 pieces and amounted to $144,282,471, as compared with 41,808 pieces amounting to $136,451,775 in 1931.
This Agency also handled during 1932, 7,320 purchases
and 16,248 resales of Government securities totaling $89,177,450. In addition, either delivery or payment, or both, was
handled for banks and trust companies on 681 transactions
in Government securities amounting to $98,923,000. There
were also 463 transactions of miscellaneous general market
securities aggregating $4,169,880. Altogether, there were
24,712 of these various transactions totaling $192,270,330,
including those for our own account, as compared with 14,959
totaling $180,455,350 in 1931.
Delivery of 61,411 pieces totaling $140,481,882 was made
on purchase and resale transactions for other than our own
account. In addition, on exchange transactions, such as
denominational exchange, the exchange of coupon for registered securities, etc., 40,074 pieces were delivered, amounting
to $52,395,700. The total number of pieces delivered was
101,485 amounting to $192,877,582, in comparison with 67,665
totaling $144,046,250 during the preceding year.
With the exception of Treasury bills, there were sixteen
offerings of United States Government securities during
1932. In such operations, 4,094 individual subscriptions contained in 1,645 different applications were received in this
district. The amount allotted on these subscriptions was
$45,718,200. During 1931 there were ten similar offerings and
$49,309,850 was allotted.
During 1932, 39 tenders amounting to $1,846,000 were
received by this Agency on 31 offerings of Treasury bills.
Of these, 5 tenders for Treasury bills, ranging from .23% to
2.65%, and amounting to $1,155,000, were accepted. During
1931, 15 tenders totaling $9,315,000 were accepted on the 29
offerings of Treasury bills made that year.
Including the weekly circular giving current market quotations on the various outstanding government issues, 114
circular letters were sent to all banks and trust companies in
the district during 1932 in connection with fiscal agency operations. During the preceding year there were 107 circular letters.



9

The First 3i/2%, First 4% and the First 4*4% Liberty
Loan Bonds reached their earliest callable dates on June 15,
1932, and although the Treasury Department has not yet
called these issues for payment they now have the privilege of
doing so on any interest date by giving three months' notice.
At the close of the year there were 352 banks and trust
companies in this district which were designated as special
depositaries 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
67 more than the number of banks so designated at the close
of the preceding year. The rate of interest to be paid on daily
balances in the War Loan eDeposit Accounts by special depositaries remained at !/2% P r annum during 1932.
The Fiscal Agency operated by us for the Government
redeemed 489,616 Government and Federal Land Bank coupons
amounting to $7,913,551 during 1932, as compared with 481,534 coupons amounting to $7,629,163 during 1931.
ACTIVITIES OF THE FEDERAL RESERVE AGENT'S
OFFICE
A. Federal Reserve Note Issues
The new series of small-size Federal reserve notes which
were first issued early in July, 1929, had largely replaced the
old-size notes by December 31, 1932, on which date the outstanding new series Federal reserve notes amounted to $76,332,280, compared with only $6,521,200 of the old series. The
denominational distribution of the outstanding old series Federal reserve notes on December 31, 1931 and 1932 was as follows:
1931
$1,114,150
1,928,540
4,069,260
385,900
921,400
110,000
231,000

Total

1932
$ 901,050
1,454,750
2,949,800
278,200
670,900
82,500
184,000

$8,760,250

5's
10's
20's
50's
100's
500's
1,000's

$6,521,200

On December 31, 1932, the amount of old and new series
notes outstanding was $82,853,480, and the Federal Reserve
Agent held $26,870,000 of new and fit-for-use notes. Of this
total outstanding ($82,853,480), there was in actual circulation $80,966,415, the notes held by our paying tellers here at
the Head Office and at the Helena Branch, together with the
amount of mutilated Federal reserve notes in transit for
redemption, totaling $1,887,065.
During 1932, the Federal Reserve Agent and his assistants
received $29,800,000 of new Federal reserve notes from the
Comptroller of the Currency at Washington, and $24,445,000
of fit-for-use notes from our receiving tellers. The issues of
new and fit-for-use notes totaled $55,905,000, as compared



10

with $42,180,000 during the preceding year and $39,052,000 in
1930. The amount of Federal reserve notes outstanding with
this Federal Reserve Bank increased from $71,288,310 to
$82,853,480 between December 31, 1931 and December 31,
1932.
Following the passage of the Glass-Steagall Act, direct
obligations of the United States were eligible as collateral for
Federal reserve notes. On December 31, 1932, the Federal
Reserve Agent held $34,900,000 of such United States obligations as collateral security for the Federal reserve notes outstanding with the Federal Reserve Bank, together with
$41,540,000 in gold coin and gold certificates in vault or on
deposit with the Federal Reserve Board and $7,500,000 in discounts and rediscounts, compared with $58,470,000 in gold,
$6,700,000 in discounts and rediscounts and $6,600,000 in purchased bills on December 31, 1931.
B.

Membership

At the close of the year, there were 545 member banks
operating in this district, excluding one national bank which
was temporarily on a holiday basis, as compared with 579
member banks at the beginning of the year. There was a
net loss of 35 national banks and a gain of 1 state bank. The
total membership (banks in operation only) at the close of
1932 was divided into 504 national banks and 41 state banks.
The banks which joined the Federal Reserve System in 1932
are:
Name of Bank
The Bessemer National Bank
The Stewartville National Bank
The First & Farmers National
Bank of Portland
Burke State Bank
Farmers State Bank
Farmers & Merchants Bank
The Security National Bank of
Viborg
The American National Bank &
Trust Co. of Eau Claire

Location
Bessemer, Mich
Stewartville, Minn
Portland,
Burke, S.
Faith, S.
Huron, S.

No. of Shares
Subscribed
45
27

N. D
D
D
D

18
21
18
67

Viborg, S. D

18

Eau Claire, Wis

72

The operating banks in the district were distributed
among the states of the district as shown in the following
table. The number is somewhat larger than that given in the
abstracts of called reports, which include only banks whose
statements are received before a certain date.
NUMBER OF BANKS IN OPERATION IN THE NINTH
FEDERAL RESERVE DISTRICT
December 31, 1931, and December 31, 1932
Michigan
Minnesota
Montana
North Dakota
South Dakota
Wisconsin
Ninth Federal
Reserve Dist

National State Members Non-Members
Total
1931 1932
1931 1932
1931 1932 1931 1932
38
34
8
8
29
21
75
63
239
228
6
5
642
578
887
811
55
52
16
16
85
79
156
147
86
77
0
0
164
155
250
232
79
72
7
9
178
158
264
239
42
41
:
>
3
169
149
214
193
539




504

40
11

41

1,267

1,140

1,846

1,685

C. Examination of Banks

During 1932, 51 credit investigations, examinations and
special visits were made by the Federal Reserve Agent's
Examiners. In the examination work this year, the examiners
and their assistants traveled in the aggregate 26,165 miles.
In addition to the information obtained from the Federal
Reserve Examiners, 1,072 reports of examination of national
banks were received from the Chief National Bank Examiner
of this district, and 11 reports of examination of state member banks were received from the various state banking departments. There were three calls for reports of condition of
national banks and three calls for state member banks during
the year. Also two semi-annual statements of earnings and
dividends were required from all member banks. Reports of
condition and of earnings and dividends totaling approximately 3,350 were received, verified and filed.
D. Applications for Fiduciary Powers
National banks have continued to apply for trust powers
under Section 11-K of the Federal Reserve Act. Applications
received and approved by the Federal Reserve Board during
1932 include the following:
Name of Bank
Midland National Bank and
Trust Company
American National Bank and
Trust Company

Date
Approved

Location
Minneapolis, Minn
Eau Claire, Wis

Capital

Powers

8-4-32

$1,000,000

Additional

12-3-32

100,000

Full

CHANGES IN PERSONNEL

At the January meeting of the Board of Directors, all
officers of both the Head Office and the Helena Branch were
re-elected. Letters from the Federal Reserve Board were presented announcing the reappointment of Mr. J. R. Mitchell as
Chairman of the Board of Directors for the year 1932 and
Mr. Homer P. Clark as Deputy Chairman of the Board of
Directors, redesignating Mr. Curtis L. Mosher and Mr. F. M.
Bailey as Assistant Federal Reserve Agents, and authorizing
Mr. O. S. Powell to act in certain matters for the Federal
Reserve Agent. A communication from the Federal Reserve
Board approved the redesignation of Mr. J. E. O'Connell as
Acting Assistant Federal Reserve Agent and Messrs. A. T.
Hibbard and Fred Heinecke as Alternate Acting Assistant
Federal Reserve Agents at the Helena Branch. A telegram
from the Board announced the appointment of Mr. Geo. W.
McCormick of Menominee, Michigan, as Class C director for
a term of three years beginning January 1, 1932, and of
Mr. Henry Sieben as director at the Helena Branch for a two
year term beginning on the same date.
The Board re-elected Mr. Andreas Ueland as Counsel for
the Head Office and Mr. Sigurd Ueland as Assistant Counsel,
and re-elected Mr. T. B. Weir as Counsel for the Helena
Branch.
Mr. Harry Yaeger was re-elected Secretary of the bank



12

for the current year and Mr. Curtis L. Mosher was re-elected
Secretary of the Board of Directors.
In March, Mr. J. E. O'Connell retired as Acting Assistant
Federal Reserve Agent at the Helena Branch and was succeeded by Mr. A. T. Hibbard. Mr. L. S. Hazard was appointed Alternate Acting Assistant Federal Reserve Agent
to succeed Mr. Hibbard.
In May, the Directors were advised of the untimely death
of Mr. Robert F. Homstrom, Assistant Cashier of the Head
Office, and of the death by drowning of Cashier H. L. Zimmerman of the Helena Branch.
On the recommendation of Governor W. B. Geery, the
Directors elected Mr. Wm. E. Peterson and Mr. Otis R. Preston as Assistant Cashiers of the Head Office and Mr. A. A.
Hoerr, Cashier, and Mr. C. J. Larson, Assistant Cashier of the
Branch.
On September 7, Mr. R. E. Towle, Managing Director of
the Helena Branch, was given leave of absence to assist in
the organization of the Regional Agricultural Credit Corporation of the Reconstruction Finance Corporation at Spokane,
Washington. In December, his leave of absence was extended
by the Directors for a period of three months. At the same
meeting there was presented a telegram from the Federal
Reserve Board announcing the reappointment of Mr. J. R.
Mitchell as Class C director for a term of three years beginning January 1, 1933, and his redesignation by the Board as
Chairman and Federal Reserve Agent for the year 1933.
There was also presented a telegram announcing the reappointment of Mr. Homer P. Clark as Deputy Chairman of
the Board of Directors at the Head Office for 1933. A telegram also announced the appointment of Mr. Wm. P. Sullivan
of Square Butte, Montana, as a director of the Helena Branch
for a term of two years beginning January 1, 1933.
The Directors elected Mr. Theodore Wold as a member
of the Federal Advisory Council for 1933 to succeed himself,
and re-elected Mr. Samuel McKennan, President of the Union
Bank & Trust Company of Helena, as director for the Helena
Branch, succeeding himself for a term of two years beginning
January 1, 1933.
The Chairman of the Board announced that as a result of
the regular fall elections, Mr. H. R. Kibbee was re-elected
Class A director for a three year term beginning January 1,
1933, and Mr. J. E. O'Connell of Helena, Montana, a Class B
director for a three year term beginning on the same date.
The complete staff of the Federal Reserve Bank of Minneapolis and its Helena Branch, including officers, employees
and building employees, but excluding temporary help, numbered 330 persons on December 31, 1932, as compared with
279 at the close of the previous year.



13

Resources and Liabilities of the Federal Reserve Bank
of Minneapolis
(In Thousands of Dollars)
RESOURCES

Gold with Federal Reserve Agent
Gold redemption fund with United States Treasury

Dec. 31
1932
$ 41,540
2,214

Dec. 31
1931
$ 58,470
704

Dec. 31
1930
$ 48,325
802

Gold held exclusively against Federal reserve notes
Gold settlement fund with Federal Reserve Board
Gold and gold certificates held by bank

$ 43,754
7,797
2,340

$ 59,174

$ 49,127

9,367

10,076

5,735

5,208

$ 53,891

$ 74,276

$ 64,411

5,104

5,632

4,258

$ 58,995
2,146

$ 79,908

$ 68,669

1,732

2,432

352
9,252

1,074
6,497

403
3,173

Total gold reserves
Reserves other than gold
Total reserves
Non-reserve cash
Bills Discounted:
Secured by United States Government obligations
Other bills discounted
Total bills discounted

$ 9,604

Bills bought in open market
United States Government Securities:
Bonds
Treasury notes
Certificates and bills

$

7,571

$

3,576

612

7,329

17,398
8,110
29,343

15,832

5,936

589

10,185

11,247

11,181

$ 54,851
410

$ 27,668

$ 27,302

903

233

Total bills and securities
Uncollected items
Bank premises
All other resources

$ 65,477
11,533
1,746
1,734

$ 43,471

$ 39,522

9,254

11,171

1,834

1,926

1,387

544

Total resources

$141,631

$137,586

$124,264

$ 80,966

$ 69,129

$ 53,559

Total United States Government securities
Other securities

8,411

LIABILITIES
Federal reserve notes in actual circulation
Deposits :
Member bank reserve account
Government
Foreign bank
Other deposits

37,760
468
461
348

Ratio of total reserves to deposit and Federal reserve
note liabilities combined (per cent)
Contingent liability on bills purchased for foreign
correspondents

14

48,447
1,280

1,768

132

.Hoi;

139

$ 49,912
7,792
2,951
6,356
1,446

$ 49,998
9,776
3,063
7,144

$141,631

Total liabilities

1,961

$ 39,037
10,738
2,885
7,019
986

Total deposits
Deferred availability items
Capital paid in
Surplus
All other liabilities




45,827

$137,586

$124,264

49.2
$

856

724

66.3

tw.l
$ 5,716

$

9,994

Earnings and Expenses of Federal Reserve Bank of

Minneapolis

FINANCIAL RESULTS OF OPERATION
Discounted bills
Purchased bills
U. S. Securities
Deficient reserve penalties
Miscellaneous

1932
$ 418,531
65,335
921,077
17,219
12,931

1931
$ 168,589
132,999
597,518
7,726
29,772

1930
$ 172,441
228,551
747,484
7,644
78,962

Total earnings
Current expenses

$1,435,093
926,669

$ 936,604
918,942

$1,235,082
976,867

Current net earnings
Additions to current net earnings
Deductions from current net earnings :
Bank premises—depreciation
Furniture and equipment
All other

$ 508,424
84,253

$

17,662
142,751

$ 258,215
293,206

90,371
11,985
217,984

92,051
10,947
11,610

91,982
14,548
251,302

Total deductions
Net earnings available for dividends, surplus and
franchise tax
Distribution of net earnings:
Dividends paid
Transferred to surplus account
Franchise tax paid U. S. Government

$ 320,340

$ 114,608

$ 357,832

272,337

45,805

193,589

175,495
9,684
87,158

180,455
134,650**
None

184,445
914
8,230

CURRENT EXPENSES
Salaries :
Bank officers
$ 110,300
Clerical staff
328,047
All other
114,101
Governors' conferences
995
Federal Reserve Agents' conferences
188
Federal Advisory Council
1,540
Directors' meetings
9,750
Traveling Expenses*
21,810
Assessment for Federal Reserve Board expenses
16,243
Legal fees
14,104
Insurance (other than on currency and security
shipments)
32,057
Taxes on banking house
66,412
Repairs and alterations, banking house
1,731
Light, heat and power
17,568
Telephone
5,960
Telegraph
15,870
Postage
72,820
Expressage
8,055
Insurance on currency and security shipments
9,233
Printing and stationery
16,898
Office and other supplies
13,028
All other expenses
30,488
Total exclusive of cost of currency
$ 907,198
Federal Reserve Currency (including shipping charges) :
Original cost
$ 16,979
Cost of redemption
2,491
Total current expenses

$ 926,668

REIMBURSABLE
Salaries
All other expenses

$ 118,135
330,399
102,521
611
0
1,316
7,062
17,565
16,482
14,865

$ 122,067
338,939
96,241
609
317
1,298
6,529
12,921
18,504
18,431

31,671
69,505
5,438
16,208
5,584
17,664
52,523
11,779
12,410
14,784
13,280
32,686

30,721
69,399
6,155
17,202
5,166
18,032
64,934
12,230
13,916
19,447
17,537
29,342

$ 892,488

$ 919,937

$

$

23,386
3,068

52,685
4,245

$ 918,942

$ 976,867

EXPENSES
$

$

14,767
5,065

$

14,572
3,482

$

Total

38,566
14,898
53,464

$

19,832

$

18,054

* Other than those connected with governors' and agents' conferences and meetings of
the directors and of the Advisory Council.
** Withdrawn from surplus account.




15

DIRECTORS AND OFFICERS
FEDERAL RESERVE BANK OF MINNEAPOLIS
JANUARY 1, 1933
DIRECTORS
Class A
H. C. HANSEN PAUL J. LEEMAN
H. R. KIBBEE
-

1933
1934
1935

Class B
J O H N S. O W E N
.
.
W. O. W A S H B U R N J. E. O'CONNELL
-

.

Class C
HOMER P. CLARK, Deputy Chairman
GEO. W. McCORMICK
J. R. MITCHELL, Chairman

Churchs Ferry, N. D.
Minneapolis, Minn.
Mitchell, S. D.

1933
1934
1935

-

- Eau Claire, Wia.
- St. Paul, Minn.
Helena, Mont.

1933
1934
1935

- St. Paul, Minn.
- Menominee, Mich.
Minneapolis, Minn.

OFFICERS
J. R. MITCHELL, Federal Reserve Agent
CURTIS L. MOSHER, Secretary, Board of
Directors and Asst. Federal Reserve
Agent
FRED M. BAILEY, Assistant Federal Reserve Agent
W. B. GEERY
Governor
HARRY YAEGER, Secretary and Deputy
Governor

HARRY I. ZIEMER, Deputy Governor and
Cashier
- Controller
FRANK C. DUNLOP Asst. Cashier
L. E. RAST - - Asst. Cashier
H. C. CORE - - Asst. Cashier
A. R. LARSON - Asst. Cashier
W. E. PETERSON
Asst. Cashier
OTIS R. PRESTON -

Statistician and Counsel
OLIVER S. POWELL
ANDREAS UELAND -

-

- Statistician
Legal Counsel

H. C. TIMBERLAKE - Asst. Statistician
SIGURD UELAND - - Asst. Counsel

MEMBER OF FEDERAL ADVISORY COUNCIL
THEODORE WOLD, Vice-President, Northwestern National Bank,
Minneapolis, Minnesota

HELENA BRANCH—(MONTANA)
DIRECTORS
R. E. TOWLE
T. A. MARLOW HENRY SIEBEN
S. McKENNAN WILLIAM P. SULLIVAN -

1933
1933
1933
1934
1934

Helena,
Helena,
Helena,
Helena,
Square Butte,

Mont.
Mont.
Mont.
Mont.
Mont.

OFFICERS
R. E. TOWLE
A. A. HOERR
C. J. LARSON
T. B. WEIR
-




-

Managing Director
Cashier
Assistant Cashier
Legal Counsel

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