View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

ELEVENTH ANNUAL REPORT
of the

FEDERAL RESERVE AGENT
of the

NINTH FEDERAL
RESERVE DISTRICT
to the

FEDERAL RESERVE BOARD

Covering the Calendar Year




1925

Federal Reserve Bank of Minneapolis
Office of Federal Reserve Agent,
Minneapolis, Minn., January 18, 1926.
To Governor D. R. Crissinger,
Federal Reserve Board,
Washington, D. C.
Sir:
In conformity with your letter of December 7, 1925, I have
the honor to submit herewith the Eleventh 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, 1925.
Respectfully submitted,
J. R. MITCHELL,
Federal Reserve Agent.




REPORT
OF THE

FEDERAL RESERVE AGENT
AT MINNEAPOLIS

1925
AGRICULTURAL AND BUSINESS CONDITIONS
The year 1925 witnessed the spending of the remainder of
the proceeds of the crop of 1924 and the advent of a smaller crop
selling at a lower average price. The year opened with considerable latent purchasing power in the hands of agricultural producers, which was of assistance to business in this district in the
early months of the year. The exercise of this purchasing power
created by the crop of 1924 was especially noticeable in larger
shipments of agricultural implements in the first half of the year,
heavier sales of lumber by retail yards scattered throughout the
district during the first nine months of the year, and larger valuation of building permits throughout practically the whole year.
General business activity during the first nine months of the
year, as measured by check payments through banks, was on a
level approximately 20 per cent above the same months in the
preceding year. This increase was occasioned by the higher
prices prevailing for agricultural products, as well as by the
larger volume of agricultural production. Business became particularly active in April, and the improvement was very general
in all lines of activity in June, while business confidence in the
latter month was at the high point of the year. Business continued active throughout July and August because of this confidence and the results of the earlier expansion of business, although the uncertainty regarding the prospective crops became
rather pronounced in August. The new crop came to market in
unprecedented volume in September. However, producers held
unusually large quantities of grain on storage tickets and deferred final sales until later months. The failure of foreign purchasers to take as large a fraction of this year's crop as in the
preceding year resulted in a weakening of prices of wheat and
rye, and prices of the feed grains fell when it became apparent
there would be an ample supply for all domestic needs. The
realization that the cash crops of 1925 would have a volume approximately three-fourths of that in 1924 and that prices, although more largely on a domestic consumption basis
than in the preceding year, would average less, was




PtPCEWT

220

200

200

180

ISO

EIGHT

Writ/ vr

40

40

^A

120

100

Dt&ITS
To
INDIVIDUAL ACCOUNTS
AT
i CtevtN CITIES A /

/

120

100

80

^

1

t^A

I A

80

y^ v V

A

BELT C - I T I E S

j/V A

V

60

40

160

i

160

V

60

A>
^ / T

40

19 19

19 20

192 1

19 2 2

1919

1923

I92O

1921

1922

1923

1924

1925

PtBCtNT

.1

i
n

200

ISO

160

MO

120
Sioux FALLS
100

•

80

60
40

1919

I92O

. 19 2 2

1924

1925

Debits to Individual Accounts at Banks in Cities of the Ninth Federal Reserve District. Heavy curve represents
figures adjusted to eliminate seasonal changes; light curve represents actual, or unadjusted, figures. The "Eleven

Cities" include Minneapolis, St. Paul, Duluth, Superior, and seven others reporting to us since 1920.


the occasion of a definite turning point in business conditions in
the month of October. This was aided by the abnormally cold
weather which prevailed, retarding the grain movement. Early
winter retail buying was practically completed during October,
and the slump in general business occasioned both by the poorer
crops and weather conditions, continued into November, and
did not cease until the weeks of Christmas buying arrived.
The unfavorable circumstances pertaining to the crop situation were somewhat mitigated by very favorable conditions with
reference to livestock, the prices of which were higher than those
prevailing last year. The increased value of the livestock moved
did not fully equalize the loss in volume and price for the crops
as compared with the preceding year.
The purchasing power deferred by the use of storage tickets
during the heavy movement of the month of September, was
probably brought out in large part during the month of December, as the year ended with a volume of business approximately
on a level with that of a year ago.
A localized study of business conditions in 1925, upon the
basis of individual debits, or check payments through banks, in
representative cities of this District, indicates that the wheat
belt cities and cities containing livestock receiving terminals
showed improvement over the preceding year. Urban conditions,
based upon general merchandising, or upon the export trade, had
a downward tendency, as shown by the accompanying charts.
FINANCIAL CONDITIONS
As a result of larger returns from the crops of 1924, the year
opened with noteworthy surplus bank reserves and with unusually large deposits of country banks with city correspondents.
In large part, these funds were being held while awaiting expenditure by the agricultural producers or investment by bankers.
The net demand deposits of all member banks in this district
declined almost steadily from the beginning of the year to the
end of May, and the banks in the larger cities holding correspondent balances consequently experienced a similar decrease
in their demand deposits. For all member banks, the demand
deposits rose in June, declined in July and rose throughout the
remainder of the year; while the twenty-five representative banks
in the larger cities reporting to us experienced a somewhat similar gradual gain from the end of May to the end of the year.
For the latter group, the total demand deposits at the end of the
year were about 30 million dollars less than one year earlier.
Time deposits of all member banks exhibited customary seasonal
tendencies by rising during the first three months of the year, as
a result of realizing on crops shipped or being shipped, by declining from April to August inclusive, during the period when




crops come to market in the smallest volume and expenditure
is incurred in connection with the new crop and by rising thereafter to October 28, as a result of new crop marketing, after
which little change occurred. The usual small gain was shown
at the end of the year as compared with the end of the preceding year.
In connection with loans and investments of the twenty-five
city banks which report weekly to this office, it is of interest to
note the decline in holdings of commercial paper and loans to
customers, other than upon stocks and bonds, during the first
seven months of the year, followed by an increase in August and
September for crop moving purposes, and a small amount of
liquidation in the latter half of December. Investments of these
member banks were increased during the year, and loans on
stocks and bonds, which rose rapidly during the month of June,
were maintained at the June level to the end of the year. The
total of loans and investments for these twenty-five banks was
20 million dollars less than at the end of the preceding year.
A spirit of greater confidence was apparent on the part
of the investing public than prevailed in the preceding year,
because sales of industrial and foreign bonds and of stocks
were in much greater proportion as compared with total sales
than prevailed in 1924.
OPERATIONS OF MINNEAPOLIS FEDERAL RESERVE
BANK IN 1925
A. General Survey
The operations of this bank during 1925, as reflected in the
items of the balance sheet covering rediscounts for member
banks and reserve deposits of member banks, had a distinctly seasonal character. No change of importance took place between
the beginning of the year and the first week in April. Spring
borrowing began during the week ending April 15, increasing our
rediscounts to a high point of nearly 7 millions in the week ending April 29, and practically all of this loan expansion was liquidated by June 24. Fall borrowing began during the week ending
July 22, increasing our rediscounts to a peak of l l j ^ millions
during the week ending August 19, and this expansion was
completely liquidated by October 14, although followed by
a secondary peak in the week of October 21, which was completely liquidated during the week ending November 10. In this
connection, it is important to note that member bank reserve
deposits with this institution reached a higher total on October 7
than on any other date between April and the close of the year,
thereby fixing this date as the high tide of crop marketing as it
affected financial conditions during the year.
Our total earning assets declined slightly during the first
month, owing to a reduction in holdings of United States se-




curities, with a corresponding slight gain in our cash reserves.
Holdings of United States securities declined slightly during the
second month, but were practically unchanged during the remainder of the year, except for a small increase during the last
week of December. Holdings of bills bought in the open market
increased from February to the last week of September. In consequence, our total cash reserves declined by a corresponding
amount during this period between the first week in February
and the last week in September. Holdings of such purchased
bills dropped steadily throughout October and November, and
were increased during the month of December.
The net effect of these changes upon our balance sheet for
the year ending December 31, 1925, as compared with a year
earlier, was as follows: Bills discounted for member banks declined from Ay2 to 3 ^ millions, holdings of United States securities declined from 26 to 19 millions, and holdings of bills
bought in the open market increased from a negligible sum to
19 millions. Total earning assets at the end of the year were 42
millions, as compared with 30 millions at the beginning of the
year. Member bank reserve deposits decreased from 56 to 53
millions. Federal reserve notes in circulation decreased from
72 to 70 millions, and cash reserves decreased from 101 to 87
millions.
This bank did not borrow from or lend to any other Federal
reserve banks during 1925.
The discount rate of this bank was unchanged throughout
the year, at the rate of 4 per cent, effective since October 15, 1924.
B. Earnings and Expenses
The gross earnings of this bank during 1925 were $1,438,000,
as compared with $1,609,000 in 1924. Current expenses during
1925 were $1,098,000, as compared with $1,065,000 in 1924. The
current net earnings during 1925 were $341,000, as compared
with $544,000 in 1924. Miscellaneous additions to current net
earnings in 1925 amounted to $39,000 and deductions from current net earnings amounted to $145,000, leaving final net earnings
available for dividends, surplus and franchise tax of $235,000,
as compared with $329,000 in 1924. In 1925, dividends totaling
$193,560 were declared at the rate of 6 per cent per annum on
our paid-in capital stock, and paid to member banks. There was
transferred to surplus account $4,139. The remainder, amounting to $37,255, was paid to the United States Government as a
franchise tax.
C. Departmental Statistics of Volume Including the Helena
Branch
The Transit, or Check Collection Department handled
26,563,000 items during 1925, amounting to $4,012,157,000, as




7

compared with 26,219,000 items d u r i n g
$3,652,895,000.

1924, a m o u n t i n g

to

T h e Collection D e p a r t m e n t received 343,000 items during
1925, amounting to $151,044,000, as compared with 368,000 items
during 1924, amounting to $154,614,000.
T h e Currency D e p a r t m e n t received and counted 34,419,000
bills, amounting to $191,744,000 in 1925, as compared with
31,575,000 bills, amounting to $172,154,000 in 1924. T h i s department also received and counted 9,504,000 coins, a m o u n t i n g to
$3,666,000 in 1925, as compared with 8,833,000 coins, a m o u n t i n g
to $2,709,000 in 1924.
T h e Vault Custody Department, in its service of safekeeping
of securities, handled 58,363 bonds during 1925, as compared with
57,339 bonds in 1924. This d e p a r t m e n t cut and forwarded to the
owners of the securities, or turned over to other d e p a r t m e n t s for
collection or credit, 49,386 coupons during 1925, as compared
with 38,733 coupons during 1924.
W i r e transfers of funds made for member banks, including
those made for the 5 per cent Gold Redemption F u n d , numbered
63,000, totaling $2,657,304,000 during 1925, as compared with
67,000, totaling $2,405,908,000 during 1924.
T h e Discount D e p a r t m e n t received 2,869 applications for
loans during 1925 and served 290 member banks. T h i s w a s an
average of 10 applications each from 35 per cent of the n u m b e r
of member banks in the district at the close of the year. In
1924, 5,662 applications were received and 476 banks served.
This was an average of 12 applications each from 52.5 per cent
of the member banks in the district. D u r i n g 1925, 11,524 notes
were discounted, amounting to $92,374,000, as compared with
27,527 notes, amounting to $100,354,000 in 1924.
Of the total bills discounted for all m e m b e r banks, the percentages in amount divided by state lines during the last four
years were as follows:
Minnesota
South Dakota
North Dakota
Montana
Wisconsin
Michigan

1925
80.0%
9.0
3.7
1.9
2.4
3.0

1924
63.9%
13.4
12.0
7.4
2.1
1.2

1923
80.0%
6.9
4.9
6.2
1.2
.8

1922
50.5%
14.4
10.8
14.7
5.4
4.2

Bills purchased by this bank in the open market d u r i n g 1925
numbered 6,078, amounting to $84,712,000, as compared with
1,294, amounting to $15,834,000 in 1924. Bills purchased from
other Federal reserve banks d u r i n g 1925 numbered 979, a m o u n t ing to $18,276,000, as compared with 136, a m o u n t i n g to $3,006,000
in 1924.




8

FISCAL AGENCY FUNCTIONS
The Fiscal Agency operated by us for the United States
Government redeemed 1,094,000 Government coupons, amounting to $11,086,000 during 1925, as compared with 1,228,000 coupons, amounting to $10,478,000 in 1924.
Other operations consisting of issues, redemptions or exchanges of various Government securities, including Treasury
Savings Securities, redeemed at this office, or received from Postmasters after redemption by them numbered 128,000 pieces and
amounted to $82,403,000 as compared with 247,000 pieces amounting to $107,875,000 in 1924. In December the Treasury Department made public announcement of its willingness to purchase
Third Liberty Loan A-%% Bonds direct from individual holders.
As a result 800 proposals offering $2,216,350 of this issue at not
exceeding 101-^2 were received from holders in this district. Of
these, 289 proposals offering $508,450 at not exceeding 101-J4
were finally accepted and paid for.
This Agency handled during 1925, in addition, 3,865 purchases of Government securities and 4,326 resales of Government
securities, totaling $191,807,000, or an increase of approximately
19 per cent over 1924 in the number of transactions handled. Including short term government securities which were transferred
by wire, delivery of 30,623 pieces totaling $120,372,100.00 was
made on purchase and resale transactions other than for our own
account.
This Agency assisted in the allotment of five offerings of
Treasury Certificates of Indebtedness and Treasury Bonds during the year. In such operations 5,298 individual subscriptions
contained in 1,306 different applications were received.
ACTIVITIES OF T H E FEDERAL RESERVE AGENT'S
OFFICE
A. Federal Reserve Note Issues
Since the organization of this Federal Reserve Bank there
have been received by the Federal Reserve Agent from the
Comptroller of the Currency, $353,920,000 of new Federal reserve
notes, and during this same period there has been issued by the
Federal Reserve Agent to the Bank $342,525,000 of new Federal
reserve notes. Meanwhile, the Federal Reserve Bank "retired",
or returned to the Federal Reserve Agent, $83,657,500 of currency fit for reissue, and such reissues of fit-for-use notes totaled
$79,357,500. Federal reserve notes were redeemed and destroyed
at Washington since the organization of this Bank totaling
$264,979,160. The total of such notes issued by the Federal
Reserve Agent to the Bank, as shown above, less the amount
returned to the Agent and the amount returned to Washington
for destruction, are designated as "outstanding".




From the foregoing it is apparent that the amount of notes
outstanding on December 31, 1925, was $73,245,840, and that the
Federal Reserve Agent held $15,695,000 of new and fit-for-use
notes on the latter date.
Of this total outstanding ($73,245,840) there was "in circulation" $70,161,000, and the amount of notes held by our paying tellers here and in the Branch Office at Helena combined and
the amount of mutilated Federal reserve notes forwarded for
redemption totaled $3,084,840.
During 1925 the Federal Reserve Agent and his assistants
at Minneapolis and Helena received $29,220,000 of new Federal
reserve notes from the Comptroller of the Currency at Washington and $15,812,000 of fit-for-use notes from our paying tellers.
The issues of new and fit-for-use notes totaled $44,330,500, as
compared with $52,030,000 during the preceding year. The
amount of Federal reserve notes outstanding with this Federal
Reserve Bank decreased from $74,835,695 to $73,245,840 between
December 31, 1924, and December 31, 1925.
Federal reserve notes in actual circulation declined from
$71,761,000 at the beginning of the year to $61,221,000 on August
12, which was the lowest point shown in the published weekly
statements, and increased thereafter to a high point of $71,108,000
on December 23. The amount in actual circulation on December
31, 1925, was $70,161,000.
Unissued Federal reserve notes on hand held by the Federal
Reserve Agent and his assistants at Minneapolis and Helena
combined amounted to $15,695,000 on December 31, 1925, as compared with $14,993,500 on December 31, 1924.
As collateral security for the Federal reserve notes outstanding with the Federal Reserve Bank, there was held by the
agent on December 31, 1925, $57,420,000 in the form of gold coin
and gold certificates, in vault or on deposit with the Federal
Reserve Board, and $21,719,000 in eligible paper, compared with
$73,528,000 in gold and $3,650,000 in eligible paper on December 31, 1924.
B. Membership
At the close of the year, there were 862 member banks in
this district as compared with 906 member banks at the beginning of the year. There was a net loss of 29 national banks and
15 state banks. The total membership at the close of 1925 was
divided into 773 national banks and 89 state banks. The new
members are:
Name of Bank
Town
No. of Shares
Subscribed
Trout Creek State Bank
Trout Creek, Mich
15
New First National Bank in
Lamberton, Minn
18
First National Bank in
Litchfield, Minn
60
First & Farmers National Bank in
Luverne, Minn
90
10



Richland National Bank
Sidney, Mont
21
First National Bank
Gackle, N. Dak
21
Farmers National Bank in
Lidgerwood, N. Dak
21
First National Bank in
Lidgerwood, N. Dak
18
First National Bank in
Valley City, N. Dak
90
Security National Bank
Brookings, S. Dak
36
New First National Bank in
Lemmon, S. Dak
20
Oldham National Bank
Oldham, S. Dak
15
Onida National Bank
Onida, S. Dak
17
McCook County National Bank
Salem, S. Dak
18
National Bank of Wessington Springs. .Wessington Springs, S. D. 18
Crandon National Bank
Crandon, Wis
18
People's National Bank
Hay ward, Wis
18

C. Examination of Banks
During 1925, 59 examinations and credit investigations were
made by the Federal Reserve Agent's Examiners, of which 57
were made in conjunction with state banking department examiners, and 2 were independently made. Two of these examinations were made of state banks applying for, or considering,
membership in the Federal Reserve System. In the examination
work this year, three examiners were used throughout the year,
who with their assistants traveled in the aggregate 28,338 miles
and examined banks with total resources of $60,389,717. The
Manager of the Examination Department, who is included in the
total of three examiners, devoted one-half of his time to suspended banks. In addition to the foregoing examinations and
credit investigations, special visits were made to 12 banks for
the purpose of obtaining credit information, or in connection with
rediscounts or collections, or to give general assistance to member banks. Our examiners contributed a total of 3 days to
assisting closed member banks during the year.
In addition to the information obtained from the Federal
Reserve Examiners, 1,642 reports of examination of national
banks were received from the Chief National Bank Examiner of
this district, and 62 reports of examination of state member
banks were received from the various state banking departments. There were four calls for reports of condition of national banks and four calls for state member banks during the year.
Also two semi-annual statements of earnings and dividends
were required from all member banks. These reports of condition
and of earnings and dividends, totaling 5,225 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
1925 include the following:
Date
Name of Bank
Location
Approved Capital
First National Bank
First National Bank
First National Bank




Sauk Centre, Minn
Stewartville, Minn
Great Falls, Mont
11

6-25-25 $ 50,000.00
1-21-25
50,000.00
2-10-25 200,000.00

E. Reviews of Agricultural and Business Conditions
During the year, twelve monthly reviews were prepared for
the Federal Reserve Board and later published, containing a
total of 97 pages of printed material, as compared with 104 pages
in 1924. The number printed in December, 1925, was 3,525,
compared with 3,225 in December, 1924.
In connection with this review, a summary of national business conditions -prepared by the Federal Reserve Board was
published monthly, and a number of special studies were published in the monthly reviews during the year as follows:
Statistical Abstract of the years 1920-1924 in the Ninth Federal Reserve District. (January 28.)
Financing Long Term Credit for Agriculture by the Use of
State Credit in South Dakota and Minnesota, with maps. (January 28.)
Banking in 1924, a general survey of the year. (March 28.)
Crop Acreages and Production, 1909-1924, a tabular summary for each of these years in each of the States of Minnesota,
North Dakota, South Dakota and Montana, for each of the following crops: Wheat, Rye, Corn, Oats, Barley, Flax and
Potatoes. (April 28.)
Sales of Securities, 1922-1925, in the Ninth Federal Reserve
District, with graphic analysis. (May 29.)
Movement of Agricultural Products and Value at the Farm
1920-1924, a tabular statement covering actual marketings in
each of the months in each of these years, for each of the following grains: Wheat, Corn, Oats, Rye, Barley and Flax.
(June 29.)
Number of Milk Cows in 1920 and in 1925, presented in maps
showing conditions in different counties in this district.
(June 29.)
Northwest Freight Carloadings 1919-1925. (August 28.)
Changes in Security Holdings of National Banks in the
Ninth Federal Reserve District between June 30, 1924, and June
30, 1925. (September 29.)
Debits to Individual Accounts in the Ninth Federal Reserve
District 1919-1925, including an analysis of variations in different portions of the district. (November 28.)
The Number of Vacant Dwellings for Rent in Minneapolis
1919-1925 inclusive, with illustrative charts. (November 28.)
The Number of Farms on January 1, 1925, in each county
of this Federal Reserve District, with increases and decreases
since 1920, presented in the form of maps. (December 29.)




12

F. General Service
There is a demand that this Federal Reserve Bank furnish
speakers for various public meetings and that they describe the
operations of the Federal Reserve System and its relation to agriculture, commerce, industry, and finance. In response to this
demand during the year 1925, officials and representatives of this
Bank addressed 35 different groups with a total attendance of
5,705 persons, as compared with 60 addresses and an attendance
of 8,368 in 1924. In addition, many requests were received
through personal calls or letters for specific information regarding the banking system, all of which have been met with such
information as could be obtained from our library and office files.
During the year 1925, the number of volumes in our library increased from 975 to 1,106. The number of newspapers and periodicals received was practically unchanged and was comprised
chiefly of those having current interest and permanent value for
reference purposes.
CHANGES IN PERSONNEL
In the annual fall election, member banks elected Mr. Paul
J. Leeman of Minneapolis, Minnesota, as a Class A Director and
Mr. Paul N. Myers of St. Paul, Minnesota, as a Class B Director
for terms of three years each. Mr. John S. Owen of Eau Claire,
Wisconsin, was elected as a Class B Director to fill the unexpired term ending December 31, 1927, of Mr. F. P. Hixon, resigned. The Federal Reserve Board reappointed Mr. George
W. McCormick as Class C Director, Mr. J. R. Mitchell as Chairman of the Board and Federal Reserve Agent, Mr. Homer P.
Clark, as Deputy Chairman, and Messrs. Curtis L. Mosher, J.
F. Ebersole and H. L. Zimmermann as Assistant Federal Reserve Agents.
Mr. Theodore Wold was elected by our Board of Directors
as a member of the Federal Advisory Council to serve for the
year 1926.
Mr. Lee M. Ford was re-elected as a Director of the Helena
Branch for a three year term beginning January 1, 1926. Mr.
C. J. Kelly was designated as Chairman, and Mr. Henry Sieben
as Vice Chairman. Mr. R. E. Schumacher, Assistant Cashier of
the Helena Branch, resigned November 23, 1925.
The complete staff of the Federal Reserve Bank of Minneapolis and its Helena branch, including officers and banking employees, janitors and other building employees, on December 31,
1925, numbered 384 persons as compared with 382 persons a
year previous, the increase being made necessary by occupancy
of our new building to which moving was completed on February 1, 1925.




13

Resources and Liabilities of the Federal Reserve Bank
of Minneapolis
(In thousands of dollars)
RESOURCES
Dec. 31,
1925
$ 57,420
2,059

Gold with Federal reserve agent
Gold redemption fund with United States Treasury
Gold held exclusively against Federal reserve
notes
$ 59,479
Gold settlement fund with Federal Reserve Board
18,760
Gold and gold certificates held by bank
6,905

Dec. 31,
1924
$ 73,528
908

Dec. 31,
1923
$ 54,552
2,053

$ 74,436
19,569
5,867

$ 56,605
23,545
8,828

Total gold reserves
Reserves other than gold

$ 85,144
2,200

$ 99,872
1,608

$ 88.978
955

Total reserves
Non-reserve cash

$ 87,344
1,145

$101,480
1,027

$ 89,933
943

551
2,870

229
4,223

3,289
15,368

4,452
8

$18,657
623

Bills discounted:
Secured by United States Government obligations...
Other bills discounted
Total bills discounted
Bills bought in open market
United States Government securities:
Bonds
Treasury notes
Certificates of indebtedness

$

7,665
7,094
4,319

8,856
13,145
3,787

7,122
2,749
165

Total United States Government securities
Other securities
Foreign loans on gold

$ 19,078
55
257

$ 25,788

$ 10,036

Total bills and securities
Uncollected items
Bank premises
All other resources

$41,552
14,199
2,943
2,670

$30,464
13,942
2,901
3,495

$29,316
14,507
2.103
3,526

$149,853

$153,309

$140,328

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

$ 70,161

$ 71,761

$ 64,952

53,071
1,263
272
362

55,967
1,636
67
355

46,904
2,416
55
442

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

$ 54,968
13,149
3,183
7,501
891

$ 58,025
11,883
3,270
7,497
873

$ 49,817
13,482
3,498
7,484
1,095

Total liabilities
$149,853
Ratio of total reserves to deposit and Federal reserve
note liabijities combined (per cent)
69.8
Contingent liability on bills purchased for foreign
correspondents
$ 2,321

$153,309

$140,328

Total resources

3,421
18,741

$

216

LIABILITIES

78.2
$

1,537

78.4
$

646

Earnings and Expenses of Federal Reserve Bank of Minneapolis.
EARNINGS
Discounted bills
Purchased bills
U. S. Securities
Municipal warrants
Deficient reserve penalties
Miscellaneous

$ 231,342
440,784
676,696
181
17,414
71,924

$ 578,447
84,269
848,070
31
40,175
58,078

$1,088,899
31,414
520,724
66
91,943
16,207

Total earnings
Current expenses

$1,438,341
1,097,829

$1,609,070
1,065,167

$1,749,253
1,082,137

$340,512

$543,903

$667,116

Current net earnings




14

Earnings and Expenses of Federal Reserve Bank of Minneapolis,
(Continued)
Additions to current net earnings:
Withdrawn from reserve for
U. S. bonds
All other

depreciation on
39,367

143,469
27,101

8,327

$39,367

$170,570

$8,327

126,411
10,347

310,862
48,938

40,405
23,328
200,000

8,167

25,571

53,856
32,399

$144,925
105,558

$385,371
214,801

$349,988
341,661

$234,954

$329,102

$325,455

193,560
4,139
37,255

202,828
12,628
113,646

212,733
11.272
101,450

$ 121,350
429,493
25,576
67,148
566
246
1,087
9,052
52,454
21,867
23,463

$ 113,236
460,128
24,041
35,756
606
90
1,195
9,507
32,649
23,704
14,149

29,600
1,580
426
1,468
43,399
7,310
23,998
74,683
10,093
16,175
38,063
20,891
36,645

30,474
1.593
196
1,836
46,699
6,988
25.757
90,303
7,955
11,409
36,757
23,860
32,622

$1,066,120

$1,056,633

$1,031,510

28,255
3,454

6,796
1,738

40,005
10,622

$1,097,829

$1,065,167

$1,082,137

Total additions
Deductions from current net earnings:
Bank premises—depreciation
Furniture and equipment
Reserve for probable losses
Reserve for depreciation:
U. S. bonds
All other
Total deductions
Net deductions
Net earnings
Distribution of net earnings:
Dividends paid
Transferred to surplus account
Franchise tax paid U. S. Government

CURRENT EXPENSES
Salaries:
Bank officers
$ 125,552
Clerical staff
375,112
Special officers and watchmen
25,568
All other
93,344
Governors' conferences
645
Federal Reserve agent's conferences
300
Federal Advisory Council
991
Directors' meetings
8,256
Traveling expenses*
45,723
Assessment for Federal Reserve Beard expenses.. . .
23,006
Legal fees
29,884
Insurance (other than on currency and security
shipments)
31,793
Taxes on banking house
80,031
Repairs and alterations, banking house
7,931
Light, heat and power
19,757
Rent
7,889
Telephone
5,769
Telegraph
21,975
Postage
61,597
Expressage
9,553
Insurance on currency and security shipments
14,424
Printing and stationery
22,035
Office and other supplies
22,891
All other expenses
32,094
Total exclusive of cost of currency
Federal reserve currency (including shipping
charges) :
Original cost
Cost of redemption
Total current expenses

REIMBURSABLE EXPENSES OF FISCAL AGENCY DEPARTMENT
Salaries—Officers
Salaries—Employees
All other expenses

$

Total

5,500
9,790
6,123
$21,413

$

3,958
37,102
10,171
$51,231

$

9,329
131,758
33,360
$174,447

"Other than those connected with governors' and agents' conferences and meetings
of the directors and of the Advisory Council.




15

DIRECTORS AND OFFICERS
FEDERAL RESERVE BANK OF MINNEAPOLIS
JANUARY 1, 1926
DIRECTORS
Class A

-

Class B
N . B . HOLTER
JOHN S. OWEN
PAUL N. MYERS

-

-

-

1926
1927
1928

-

-

-

-

1926
1927
1928

-

-

-

J. C. BASSETT
WESLEY C. MCDOWELL
PAUL J. LEEMAN

-

1926
1927
1928

-

-

- Aberdeen, S. Dak
Marion, N. Dak
- Minneapolis, Minn
-

-

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

-

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

Class C
J. R. MITCHELL
HOMER P. CLARK
GEO. W. MCCORMICK

OFFICERS
J. R. MITCHELL, Chairman and Fed-

eral Reserve Agent.
HOMER P. CLARK, Deputy Chairman.
CURTIS L. MOSHER, Secretary Board

of Directors, and Assistant Federal Reserve Agent.
J. F. EBERSOLE, Assistant Federal Reserve Agent.
FRED M. BAILEY, Manager, Bank Ex-

amination Department.
ANDREAS UELAND, Legal
SIGURD UELAND, Assistant

Counsel.
Counsel.

R. A. YOUNG

-

W. B. GEERY B. V. MOORE -

Governor

- Deputy Governor
- Deputy Governor

HARRY YAEGER, Asst. Dep. Governor
FRANK C. DUNLOP
GRAY WARREN
L. E. RAST H. C. CORE HARRY I. ZIEMER
W. C. LANGDON
A. R. LARSON

-

Controller

- Asst.
Asst.
- Asst.
- Asst.
Asst.

Cashier
Cashier
Cashier
Cashier
Cashier
Cashier

MEMBER OF FEDERAL ADVISORY COUNCIL
THEODORE WOLD, Vice President, Northwestern National Bank,
Minneapolis, Minnesota.
HELENA BRANCH—(MONTANA)
DIRECTORS
C. J . K E L L Y , Chairman
H E N R Y S I E B E N , Vice
Chairman
R. O. K A U F M A N
T . A. MARLOW
L E E M . FORD
R. E. T O W L E
-

-

-

-

-

1926
1927
1926
1927
1928
1926

-

-

-

-

-

Butte,
- Helena,
- Helena,
- Helena,
- Great Falls,
- - Helena,

Mont
Mont
Mont
Mont
Mont
Mont

OFFICERS
R. E. TOWLE H. F. BROWN

- Managing Director
-

Cashier

W. A. CUTLER, JR. - Asst. Cashier




H. L. ZIMMERMANN, Asst. Federal
Reserve Agent and Auditor.
T. B. WEIR - - - Legal Counsel