The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
1 FIFTEENTH ANNUAL REPORT of the FEDERAL RESERVE AGENT of the NINTH FEDERAL RESERVE DISTRICT to the FEDERAL RESERVE BOARD Covering the Calendar Year —1929— Federal Reserve Bank of Minneapolis, Office of the Federal Reserve Agent, Minneapolis, Minn., February 19, 1930. To Governor R. A. Young, Federal Reserve Board, Washington, D. C. Sir: In conformity with our custom, I have the honor to submit herewith the Fifteenth 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, 1929. Respectfully submitted, J. R. MITCHELL, Federal Reserve Agent. REPORT OF THE FEDERAL RESERVE AGENT AT MINNEAPOLIS 1929 BUSINESS, AGRICULTURAL AND BANKING CONDITIONS A. Business In the Ninth Federal Reserve District the year 1929 was characterized by a larger volume of business during the first three quarters than in the same quarters of 1928, and by a reduced volume of business during the fourth quarter. In spite of the shrinkage in business activity during the fourth quarter, new high records were made by the year's totals of debits to individual accounts, country check clearings, life insurance sales, iron ore shipments, copper production and dairy income. Wholesale hardware sales were the largest since 1920 and freight carloadings were the largest since 1923. Business failures were fewer than in any year since 1920 and bank failures and farmer bankruptcies were fewer than in any year since 1922. Conditions varied considerably in various parts of the district. In Minneapolis and in the mining and lumber territories, increases in debits to individual accounts were larger than in the other areas, although there were a few cities in nearly every portion of the district which reported marked increases over 1928. The demand for iron ore and copper increased the output of minerals greatly until the national shrinkage in business activity began in the second half of 1929. The dairying and beef and pork producing areas in southern Minnesota and South Dakota and St. Paul and South St. Paul also experienced increases in debits to individual accounts. The wheat raising areas and the Great Lakes ports reported about the same volume of individual debits in 1929 as a year ago, owing to the partial crop failure of 1929 and the small export demand for grains. Retail trade, as evidenced by department store sales, furniture sales and sales of securities in the larger cities and by lumber sales in the rural portion of the district, was smaller in 1929 than in 1928, but life insurance sales increased. Wholesale trade in hardware and grocery lines was larger in 1929 than in 1928, but wholesale shoe and agricultural implement business was in slightly smaller volume. Stocks of merchandise at the close of 1929 were smaller in most wholesale lines and at city department stores but larger at country lumber yards than a year ago. A larger amount of accounts and notes receivable was held by retailers at the close of 1929 than a year ago, but wholesale accounts and notes receivable were about equal to last year's totals. Other industries exhibited mixed trends. Flour production at Minneapolis during 1929 was the smallest in several years. The volume of linseed products shipments was smaller than in the preceding year. The volume of building showed mixed trends with commercial and industrial building and public works and utilities in larger volume than in the preceding year and residential building in smaller volume. B. Agriculture Farm income from cash crops, dairy products, hogs and wool combined was 10 per cent smaller in 1929 than in 1928, and also smaller than in any other year since 1923. Decreases in farm income occurred in wheat, rye, flax and wool. Increases in income occurred in potatoes, dairy products and hogs. Prices of wheat, corn, flax, potatoes, eggs and hogs were higher in December, 1929, than a year earlier. Prices of oats, rye, butter, milk, hens, veal calves, lambs, ewes and wool were lower than a year ago. Prices of barley and butcher cattle were at approximately the same level in December, 1929, as in the same month in the preceding year. Crops were not as large in 1929 as in 1928, with the exception of corn. The wheat and rye crops were the smallest in three years. The flax crop was the smallest since 1922, and the potato crop was the smallest since 1916. The acreage in crops has been steadily increasing in the Northwest. The 1929 acreage in eight leading crops was 56,574,000 acres, representing an increase of 900,000 acres over the preceding year's acreage, and an increase of more than 8 million acres over the 1919 figures, which represented the peak of the war and immediate post-war expansion in agricultural activities. This increase in acreage has been chiefly in flax, corn, barley and tame hay. Decreases, as compared with 1919, in acreage have occurred in wheat and rye and the acreage of potatoes and oats has shown little change. The increase in barley acreage is especially noteworthy since it has been larger than the increases in the acreage of other feed crops and represents a growing recognition of the value of barley as a feed grain in the area north of the corn belt. The amount of barley consumed in Minnesota, North Dakota, South Dakota and Montana, including its use as seed, has increased from 54 million bushels in the 1922 crop year to 99 million bushels in the 1928 crop year. The acreage of leguminous hay crops including alfalfa, clover, sweet clover, mixed clover and timothy and annual legumes has increased from 2,917,000 acres in 1922 to 4,617,000 acres in 1929. This is a larger increase than the increase in total tame hay acreage and indicates that leguminous hay crops comprise most of the additions to hay acreage and are also supplanting part of the acreage of other hay crops. The course of wheat marketings differed in 1929 from the usual seasonal trend. Twice as much wheat as usual had been held on farms until the close of the 1928 marketing season. The 1929 crop was early and there was a 50 per cent increase in the number of combine harvesters used in the wheat fields as compared with the preceding year. All of these circumstances contributed to make an exceptionally heavy movement of wheat in July and August. The peak of wheat marketing in 1929 occurred in August, although the peak in past years has never been reached earlier than in September. In the last four months of the year, wheat marketings dwindled as was expected after the early rush of wheat to market, and by the end of December only a normal percentage of wheat available for marketing had been received at Minneapolis and the Head-of-the-Lakes. Export demand for the wheat crop of the Northwest did not develop in its usual volume and elevators at Minneapolis and Duluth-Superior were filled nearly to capacity at the close of the year. Butter production was larger in 1929 than in 1928, both in the Northwest and throughout the United States. In the last half of the year, production exceeded consumption by more than the seasonal amount, and stocks of dairy products became somewhat burdensome. This situation caused an unseasonal decline in butter prices in October, November and December. On January 1, 1930, the number of dairy cows and heifers in the four states was larger than a year earlier. The number of swine on farms on January 1, 1930 was the smallest since January 1, 1926, partly because of early marketings. The number of beef cattle on farms in the district on January 1, 1930 was larger than on any comparative date since January 1, 1926. The number of sheep on farms also showed a further increase during 1929. The farm real estate situation improved during 1929. Decreases occurred in farmer bankruptcies in Minnesota and South Dakota, which were only partly offset by increases in North Dakota and Montana. Forced sales of land during the year ending March 15, 1929 were sharply reduced in North Dakota, South Dakota and Montana as compared with other recent years. There was very little change in the number of forced sales in Minnesota, but the land situation in this respect has not been as serious in most parts of Minnesota as in the other northwestern states. The number of voluntary sales of farm land has improved for four years in Montana, but has shown little change in the other northwestern states. Farm land prices increased in Montana during the year ending March 1, 1929 and showed a very small decrease in Minnesota, North Dakota and South Dakota. The real estate holdings of country banks were reduced during 1929. C. Banking The banks of the district experienced a reduction of 44 million dollars in deposits during the year ending October 4, 1929, and on that date they held $1,678,205,000 of deposits. The loans of all banks in the district were increased 35 million dollars during the year and their holdings of investments were reduced 11 million dollars. Country banks experienced a loss of 36 million dollars, or 3 per cent, of their deposits during the year ending October 4, 1929. Further losses apparently were sustained during the closing months of the year for country member bank deposits during December were 5 per cent smaller than in December 1928. The loans of country banks decreased 1 per cent during the year ending October 4, and their investment holdings increased 2 per cent. Further improvement in the average size of country banks in the district occurred during the year. Average holdings of deposits per country bank increased from $502,000 on October 3, 1928 to $519,000 on October 4, 1929. Bank failures during the year 1929 were 84 in number, which was the smallest total since 1922. The total number of banks operating in the district was reduced by 146, owing to consolidations and voluntary liquidations as well as failures. City member banks experienced the usual seasonal decline in deposits to a low point for the year in May. There followed a more rapid increase than usual in the deposits of these banks during the summer and early fall months, but the customary sharp increase in deposits in October and November did not develop. However, there was not as sharp a decrease in deposits during the last half of November and the month of December as in the past three years, and deposits of city member banks at the close of 1929 were only 7 million dollars (less than 2 per cent) smaller than a year earlier. The deficiency in deposits, as compared with the preceding year, was chiefly in deposits due to country banks which did not experience the usual autumn increase. The loans to customers of city member banks rose from the low point of the year at the end of January to a peak at the end of October, which was followed by a gradual decrease to the close of the year. At the end of the year, loans to customers by these banks were considerably larger than a year earlier. Other invested funds of these city banks, including holdings of securities, brokers' loans, acceptances and commercial paper, decreased steadily throughout 1929, with the exception of a minor peak at the close of May when the spring real estate tax payments caused a sharp increase in deposits for a few days. Interest rates charged by Minneapolis banks on prime loans increased from 5%-6 per cent in January 1929 to 6V2 per cent in November and then decreased to an average of 6 per cent in December. OPERATIONS OF MINNEAPOLIS FEDERAL RESERVE BANK IN 1929 A. General Survey The earning assets of the bank fluctuated between a low point of 281/2 million dollars, reached on December 24, and a high point of 61 million dollars, reached on October 2, as indicated by the weekly published balance sheets of the bank. Discounts and rediscounts were small at the beginning of the year, but rose rapidly after mid-year to a peak of 43 million dollars on October 23, after which they decreased to 7V& million dollars on December 24. Loans to member banks in the larger cities of the district represented the major portion of the discounted bill holdings of this bank during most of the year. This condition was especially marked in the early fall when the grain which had been held over from the 1928 crop and the grain from the 1929 crop which reached the market earlier than usual this year required financing. City member banks in this district made large loans on grain in terminal warehouses throughout the fall months. Country member banks borrowed slightly more this fall at the peak of their seasonal requirements than in other recent years, but their borrowings showed their usual seasonal reduction in the last few weeks of the year. In the spring wheat belt, the peak of borrowing requirements from the Federal Reserve Bank was reached early in July, although the usual peak of credit strain occurs in the latter part of August. This unusually early passing of the peak of borrowings by these banks was due to the sale of held-over grain and the early marketing of the 1929 crop. Federal reserve notes in circulation declined during January to $59,970,000 on January 30. The highest amount of Federal reserve notes in circulation was reported on July 10, when the first issue of Federal reserve notes of the new size in all of the smaller denominations was made. This peak of Federal reserve notes in circulation was very temporary and was practically eliminated during the next three weeks. Following this period, the usual seasonal increase in currency circulation began in the fall, reaching a peak on October 23 of $68,348,000. There was a gradual decline during the closing weeks of the year in the amount of Federal reserve notes in circulation, with the exception of the usual increase in circulation during the week before Christmas. Member banks reserve deposits reached a low point for the year on February 20 and a high point on November 6. The cash reserves of this bank were at their lowest level on October 23, but expanded rapidly after that date to a high point for the year on December 24. The net effect of these changes upon our balance sheet for the year ending December 31, 1929, as compared with December 31, 1928, was as follows: Cash reserves increased 7 million dollars; bills discounted increased nearly 6 million dollars; total earning assets decreased 5 million dollars; Federal reserve notes in circulation increased more than 1*4 million dollars ; member bank reserve deposits increased nearly 1 million dollars; the ratio of total cash reserves to deposits and Federal reserve note liabilities combined increased from 71.6 per cent to 75.4 per cent. This bank did not borrow from nor lend to any other Federal reserve bank during 1929. The discount rate of the bank remained at 4Vfc per cent from April 25, 1928 to May 14, 1929, when it was increased to 5 per cent. This latter rate remained in force throughout the remainder of the year. B. Earnings and Expenses The gross earnings of this bank during 1929 were $1,926,000, as compared with $1,710,000 in 1928. Current expenses during 1929 were $1,022,000, as compared with $1,000,000 in 1928. The increase in current expenses was caused by increased cost of Federal reserve notes on account of the issuance of a new series of smaller size bills. The current net earnings during 1929 were $904,000, as compared with $710,000 in 1928. Miscellaneous additions to current net earnings in 1929 amounted to $22,000, and deductions from current net earnings amounted to $131,000, leaving final net earnings available for dividends, surplus and franchise tax of $795,000, as compared with $615,000 in 1928. In 1929, dividends totaling $184,030 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 $61,073. The remainder amounting to $549,659, 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 24,275,000 items during 1929, amounting to $4,711,582,000, as compared with 24,874,000 items during 1928, amounting to $4,591,766,000. The Collection Department received 269,000 items during 1929, amounting to $143,247,000, as compared with 296,000 items during 1928, amounting to $146,219,000. The Currency Department received and counted 42,565,000 bills, amounting to $228,825,000 in 1929, as compared with 39,464,000 bills, amounting to $208,262,000' in 1928. This department also received and counted 13,027,000 coins, amounting to $4,716,000 in 1929, as compared with 10,056,000 coins, amounting to $4,036,000 in 1928. The Vault Custody Department in its service of safekeeping of securities, handled 80,589 bonds during 1929, as compared with 103,414 bonds in 1928. This department cut and forwarded to the owners of the securities, or turned over to other departments for collection or credit, 169,304 coupons during 1929, as compared with 158,618 coupons during 1928. On December 31, this department was holding for member banks $133,000,000 of securities for safekeeping or pledged against government deposits, or as collateral to bills payable, as compared with $144,000,000 a year earlier. Transfers of funds made for member banks, including those made for the 5 per cent Redemption Fund, numbered 71,000, totaling $3,088,089,000 during 1929, as compared with 69,000, totaling $2,957,404,000 during 1928. 8 The Discount Department served 249 member banks during 1929. In 1928, 224 member banks were served. During 1929, 11,238 notes were discounted, amounting to $1,035,247,000, as compared with 23,773 notes, amounting to $625,358,000 in 1928. Of the discounted and rediscounted notes held by this bank on December 31 of the last three years, the geographical distribution was as follows: (000's omitted) 1929 Minneapolis and St. Paul $ 7,910 Other Minnesota 647 Montana 182 North Dakota 435 South Dakota 551 Wisconsin 128 Michigan 324 Federal Intermediate Credit Bank of St. Paul 0 Total $10,177 1928 $1,935 686 213 348 446 199 168 $ 1927 89 633 21 318 640 88 116 500 0 $4,495 $1,905 Bills drawn in dollars and foreign currencies which were purchased by this bank in the open market for its own account during 1929 amounted to $34,439,000, as compared with $69,343,000 in 1928. Bills purchased from other Federal Reserve Banks during 1929 amounted to $2,502,000, as compared with $25,309,000 in 1928. FISCAL AGENCY FUNCTIONS Issues, redemptions or receipts for exchange of various United States Government securities, including Treasury Savings securities redeemed at this office, which were handled by the Fiscal Agency operated by us for the United States Government, numbered 58,028 pieces and amounted to $128,941,796, as compared with 224,045 pieces amounting to $149,551,218 in 1928. The decrease in these figures is largely accounted for by the fact that there was no large redemption of maturing securities during 1929 such as occurred in the preceding year when the Third Liberty Loan Bonds became due and of which 148,217 pieces amounting to $37,580,200 were received either in exchange for other issues or for payment. This Agency also handled during 1929, 4,005 orders for the purchase of Government securities and 8,686 resales of Government securities totaling $92,861,130. In addition, either delivery or payment, or both was handled for banks and trust companies on 735 transactions in Government securities amounting to $55,881,900. There were also 362 transactions of miscellaneous general market securities aggregating $1,483,600. Altogether, of these various transactions, there were 13,788 totalling $150,226,630, as compared with 13,716 totaling $138,917,871 in 1928. Delivery of 34,676 pieces totaling $91,413,800 was made on purchase and resale transactions for other than our own account. In addition, on exchange transactions, such as de 9 nominational exchange, the exchange of coupon for registered securities, etc., 40,138 pieces were delivered amounting to $38,610,100. The total number of pieces delivered was 74,814 amounting to $130,023,900, in comparison with 74,570 pieces totaling $129,796,663 during the preceding year. There were four offerings of United States Treasury Certificates of Indebtedness during 1929, as compared with ten offerings in 1928. In such operations, 2,427 individual subscriptions contained in 1,495 different applications were received. The amount allotted on these subscriptions was $31,074,500. In July, the Treasury Department offered to purchase the 3x/2 per cent Treasury notes of Series A-1930-32 direct from individual holders at a price of $98 and accrued interest for each $100 face amount. In accordance with this offer, 25 purchases amounting to $591,400 were made for the Government. The September offering of Treasury certificates was the first offering with the new tax exemption provision to the effect that the certificates would be fully exempt, both as to principal and interest, from all taxation, except estate and inheritance taxes. Heretofore the interest on such certificates had been exempt from the normal income tax, but from surtaxes only to a limited extent. In addition to the cash subscriptions to this offering, 32 applications submitting $1,069,000 of the 3!/2 per cent Treasury notes maturing in 1932 and callable in 1930 were accepted in payment of the new certificates at a price of $98 for each $100 face amount of the certificates. During the latter part of November, the Treasury Department announced its intention of issuing a new form of Government security. This was the Treasury bill, sold on a discount basis to the highest bidders and payable at maturity without interest. For the initial offering of these bills on December 10 with a 90-day maturity, 23 tenders for $510,000 were received by this Agency. Bids ranged from 99.219 equivalent to an interest rate of 3% per cent to 98.75 or a rate of 5 per cent. Of these, two bids totaling $75,000 at 99.219 were accepted. The Fiscal Agency operated by us for the Government redeemed 578,275 Government and Federal Land Bank coupons amounting to $10,546,000 during 1929, as compared with 809,698 coupons amounting to $10,126,000 during 1928. ACTIVITIES OF THE FEDERAL RESERVE AGENT'S OFFICE A. Federal Reserve Note Issues A new series of paper currency of all kinds and denominations consisting of smaller sized bills was adopted in the United States in 1929. Issues of bills of the new series began on July 10. At the close of 1929, the replacement of old-size Federal Reserve notes in this district by new-size bills had been about half accomplished. Of the outstanding Federal 10 reserve notes of this Bank on December 31, 1929, $37,652,000 were of the new series and $36,267,570 were of the old series. On December 31, 1929, the amount of notes outstanding was $73,919,570, and the Federal Reserve Agent held $50,312,000 of new and fit-for-use notes. Of this total outstanding ($73,919,570) there was "in circulation" $66,855,445; 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 $7,064,125. During 1929, the Federal Reserve Agent and his assistants received $91,260,000 of new Federal reserve notes from the Comptroller of the Currency at Washington and $17,277,000 of fit-for-use notes from our paying tellers. The issues of new and fit-for-use notes totaled $73,754,000, as compared with $40,015,000 during the preceding year, the increase being largely due to the issuance of the new series of small sized bills. The amount of Federal reserve notes outstanding with this Federal Reserve Bank increased from $72,577,520 to $73,919,570 between December 31, 1928 and December 31, 1929. As collateral security for the Federal reserve notes outstanding with the Federal Reserve Bank, there was held by the Agent on December 31, 1929 $66,157,000 in gold coin and gold certificates in vault or on deposit with the Federal Reserve Board, $9,900,000 in discounts and rediscounts and $6,611,000 in purchased bills, compared with $47,920,520 in gold, $4,216,000 in discounts and rediscounts and $21,792,000 in purchased bills on December 31, 1928. B. Membership At the close of the year, there were 683 member banks operating in this district, as compared with 719 member banks at the beginning of the year. There was a net loss of 30 national banks and 6 state banks. The total membership (banks in operation only) at the close of 1929 was divided into 633 national banks and 50 state banks. The new members are: Name of Bank Town First National Bank in Amboy, Minn National Bank of Benson, Minn First National Bank in Deer Creek, Minn Minnesota National Bank of East Grand Forks, Minn American National Bank in Little Falls, Minn First National Bank in Moorhead, Minn Northfield National Bank & Trust Co. of Northfield, Minn The Pipestone National Bank Pipestone, Minn Security National Bank & Trust Co. of Red Wing, Minn Security National Bank of Willmar, Minn National Park Bank in Livingston, Mont Dakota National Bank & Trust Co. of Bismarck, N. Dak 11 No. of Shares Subscribed 23 42 17 36 75 90 90 60 90 75 120 90 First National Bank in Cooperstown, N. Dak Merchants National Bank & Trust Co. of Fargo, N. Dak First National Bank in Glen Ullin, N. Dak Red River National Bank & Trust Co. of Grand Forks, N. Dak National Bank & Trust Co. of.... Jamestown, N. Dak American National Bank & Trust Co. of Valley City, N. Dak National Bank of Valley City, N. Dak First National Bank in Arlington, S. Dak The Farmers National Bank of.. Fairfax, S. Dak Farmers & Merchants National Bank in Milbank, S. Dak First National Bank in Mt. Vernon, S. Dak First National Bank & Trust Co. of Vermilion, S. Dak 36 180 21 150 75 75 75 18 18 45 18 90 NUMBER OF BANKS IN OPERATION IN THE NINTH FEDERAL RESERVE DISTRICT December 31, 1928 and December 31, 1929 1928 Michigan 39 Minnesota 278 Montana 70 North Dakota.. 133 South Dakota.. 96 Wisconsin 47 Ninth Federal Reserve Dist...663 al !State Members Non-Members 929 1928 1929 1928 1929 Total 1929 1928 39 266 67 122 92 47 8 13 22 1 9 3 7 10 21 0 9 3 31 816 109 342 303 194 31 778 107 293 283 191 78 1,107 201 476 408 244 77 1,054 195 415 384 241 633 56 50 1,795 1,683 2,514 2,366 C. Examination of Banks During 1929, 52 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 17,432 miles. In addition to the information obtained from the Federal Reserve Examiners, 1,352 reports of examination of national banks were received from the Chief National Bank Examiner of this district, and 67 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. Reports of condition and of earnings and dividends, totaling approximately 4,200 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 1929 include the following: 12 Location Name of Bank „ First & American Nat'l Bk.. Duluth, Minn Hastings, Minn First National Bank. Mankato, Minn First National Bank Northfield Nat'l Bk. & Tr. Co _ Northfield, Minn First National Bank _ Security Nat'l Bk. & Tr. Proctor, Minn Red Wing, Minn Co _ _ American National Bank... St. Paul, Minn. . St. Paul, Minn First National Bank. Dakota Nat'l Bk. & Tr. Co.. Bismarck, N. Dak. Merchants Nat'l Bk. & Tr. Co Fargo, N. Dak First National Bank Red River Nat'l Bk. & Tr. Grand Forks, N. Dak. Grand Forks, N. Dak Co _ James River Nat'l Bank...... Jamestown, N. Dak Jamestown, N. Dak National Bk. & Tr. Co American Nat'l Bk. & Tr. Co. „ „_. Valley City, N .Dak Valley City, N. Dak National Bank of. Aberdeen Nat'l Bk. & Tr. Aberdeen, S. Dak Co Arlington, S. Dak First National Bank in First Nat'l Bk. & Tr. Co.. Chamberlain, S. Dak (Charter not yet issued) Huron, S. Dak National Bank of Huron First Nat'l Bk. & Tr. Co.... Vermilion, S. Dak. First Nat'l Bk. & Tr. Co Yankton, S. Dak. ... Date Approved Powers Capital 5- 3-29 $3,000,000 Full 12-10-29 50,000 Full 10-31-29 250,000 Full 100,000 Full 6-14-29 50,000 Full 8- 6-29 100,000 Full 11-25-29 500,000 Full 5-23-29 10- 1-29 6,000,000 Full 100,000 Full 11-26-29 4-29-29 10- 1-29 7-18-29 10-31-29 6-20-29 250,000 400,000 Full Full 200,000 100,000 100,000 Full Additional Full 10-15-29 8-22-29 11-21-29 9- 4-29 9- 3-29 100,000 100,000 Full Full 100,000 25,000 25,000 Additional Limited Full 2-27-29 6-12-29 11- 6-29 150,000 100,000 50,000 Full Full Additional CHANGES IN PERSONNEL At the January meeting of the Board, the directors reelected the officers of both the bank and its Helena branch. Notices were presented from the Federal Reserve Board of the redesignation of Mr. J. R. Mitchell as Chairman of the Board of Directors and redesignation of Mr. Curtis L. Mosher and Mr. F. M. Bailey as Assistant Federal Reserve Agents, together with the naming of Mr. 0. S. Powell to act in certain matters for the Federal Reserve Agent. Mr. Mosher was reelected Secretary of the Board of Directors and Mr. B. V. Moore, Secretary of the bank. The Federal Reserve Board also forwarded notice of the reappointment of Mr. Geo. W. McCormick as Class C director and Mr. C. J. Kelly as director of the Helena Branch, and of the redesignation of Mr. Homer P. Clark as Deputy Chairman. The directors elected Mr. Theo. Wold as member of the Federal Advisory Council from the Ninth Federal Reserve District for the year 1929. On May 1st Mr. B. V. Moore resigned as Deputy Governor of the bank and Mr. Harry I. Ziemer was elected Deputy Governor of junior rank. Mr. Harry Yaeger was elected Secretary of the bank, succeeding Mr. Moore. On October 11th the directors were notified of the resignation of Mr. R. O. Kaufman as director of the Helena branch and elected Mr. S. McKennan of Helena as his successor. At the regular fall elections, Mr. J. C. Bassett was reelected Class A director and Mr. Norman B. Holter reelected Class B director for three year terms beginning January 1, 1930. Late in the year the sudden death of Mr. Paul N. Myers, Class B director, necessitated the calling of a special election to fill the vacancy on the board thus created. 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 289 persons on December 31, 1929, as compared with 314 at the close of the previous year. 13 Resources and Liabilities of the Federal Reserve Bank of Minneapolis (In Thousands of Dollars) RESOURCES Dec. 31, 1929 Gold with Federal Reserve Agent $ Gold redemption fund with United States Treasury 66,157 Dec. 31, 1928 $ 47,920 3,970 2,342 Gold held exclusively against Federal reserve notes..$ 70,127 Gold settlement fund with Federal Reserve Board.... 18,085 Gold and gold certificates held by bank $ $ 92,466 $ 95,197 Reserves other than gold 85,650 $ 88,160 Non-reserve cash $ 51,152 16,830 5,052 $ 73,034 $ 77,063 4,029 2,510 2,467 49,729 1,423 5,742 $ 2,731 Total reserves $ 29,646 4,254 Total gold reserves 50,262 Dec. 31, 1927 1,392 1,223 Bills discounted: Secured by United States Government obligations 3,552 2,232 329 Other bills discounted 6,625 2,263 1,576 Total bills discounted $ Bills bought in open market 10,177 $ 4,495 $ 1,905 6,636 21,819 18,319 5,996 4,519 11,678 5,693 4,619 4,411 5,184 1,770 United States Government securities: Bonds Treasury notes _ Certificates and bills Total United States Government securities....$ Other securities 16,873 $ 10,908 $ 38,857 121 Total bills and securities $ Uncollected items ; 33,807 7,811 $ 23,900 $ 44,744 620 1,635 14,791 15,830 15,162 2,018 2,110 2,202 All other resources 559 842 1,791 Total resources $ 148,839 $ 147,191 $ 142,185 $ $ $ Bank premises LIABILITIES Federal reserve notes in actual circulation 66,855 65,274 61,224 Deposits: Member bank reserve account Government Foreign bank „ Other deposits Total deposits _ $ Deferred availability items 56,067 54,836 2,129 1,336 1,874 140 176 139 267 332 274 59,398 $ Surplus 57,911 13,079 11,535 Capital paid in $ 57,123 13,010 3,091 3,009 3,009 7,143 7,082 7,039 817 836 780 $ 148,839 $ 147,191 $ 142,185 71.6 65.1 All other liabilities Total liabilities 56,862 Ratio of total reserves to deposit and Federal reserve note liabilities combined (per cent) Contingent liability on bills purchased for foreign correspondents $ 14 75.4 13,667 $ 8,722 6,863 Earnings and Expenses of Federal Reserve Bank of Minneapolis EARNINGS Discounted bills Purchased bills U. S. Securities Deficient reserve penalties Miscellaneous Total earnings Current expenses „ „ „ Current net earnings Additions to current net earnings Deductions from current net e a r n i n g s : Bank premises—depreciation Furniture and equipment. All Other _ 1929 $1,047,771 310,209 388,604 12,475 166,972 $1,926,031 1,022,009 1928 $ 490.752 609,535 512,433 7,763 89,821 $1,710,304 1,000,474 1927 $ 192,216 360,293 707,599 13,404 116,519 $1,390,031 1,048,746 $ 904,022 22,137 $ 709,830 331,879 $ 341,285 48,509 91,982 24,733 14,682 91,982 32,026 302,997 71,982 10,784 10,951 131,397 $ 427,005 794,762 614,704 296,077 184,030 61,073 549,659 181,203 43,350 390,151 180,726 11,535 103,816 $117,503 29,962 350,452 65,635 687 587 1,150 6,793 20,146 18,931 27,839 $129,360 28,624 357,849 79,065 444 210 1,112 7,446 28,058 23,137 27,494 30,899 86,306 7,656 17,370 90 5,120 17,817 63,880 8,399 14,163 19,370 19,403 47,814 29,102 85,643 9,391 19,562 $ 977,972 $1,013,146 $ $ „ Total deductions _ $ Net earnings available for dividends, surplus and franchise t a x Distribution of net e a r n i n g s : Dividends paid Transferred to surplus account Franchise t a x paid U. S. Government CURRENT EXPENSES Salaries: Bank officers $117,783 Special officers and watchmen 31,325 Clerical staff 346,319 All other 57,964 Governors' conferences 567 Federal Reserve Agent's conferences 320 Federal Advisory Council 1,396 Directors' meetings 6,564 Traveling expenses* 14,716 Assessment for Federal Reserve Board expenses 19,433 Legal fees 17,077 Insurance (other than on currency and security shipments) _ 30,755 Taxes on banking house 77,128 Repairs and alterations, banking house 7,097 Light, heat and power 17,967 Rent Telephone 5,494 Telegraph 18,421 Postage 63,011 Expressage _ 11,048 Insurance on currency and security shipments 14,809 Printing and stationery 18,601 Office and other supplies 18,504 All other expenses 43,323 Total exclusive of cost of currency $ 939,622 Federal reserve currency (including shipping charges) : Original cost $ 79,642 Cost of redemption 2,745 Total current expenses $1,022,009 20,992 1,510 $ 93,717 5,304 19,972 61,876 8,415 13,391 25,322 19,901 32,468 $1,000,474 34,117 1,483 $1,048,746 REIMBURSABLE E X P E N S E S OF FISCAL AGENCY DEPARTMENT Salaries All other expenses _ $ 13,607 3,795 $ 13,640 6,212 $ 13,038 6,911 $ 17,402 $ 19,852 $ 19,949 _ Total •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, 1930 Class A KARL J . FARUP P A U L J . LEEMAN J . C. BASSETT - DIRECTORS - Class B JOHN S. OWEN W. O. WASHBURN* N . B. HOLTER . . . Class C HOMER P . CLARK GEO. W. McCORMICK J. R. MITCHELL •Elected January 16, 1930. 1930 1931 1932 Park River, N. Dak Minneapolis, Minn. Aberdeen, S. Dak. 1930 1931 1932 - Eau Claire, Wis. - St. Paul, Minn. Helena, Mont. 1930 1931 1932 - St. Paul, Minn. Menominee, Mich. Minneapolis, Minn. OFFICERS J. R. MITCHELL, Chairman and Federal Reserve Agent HOMER P. CLARK, Deputy Chairman CURTIS L. MOSHER, Secretary, Board of Directors and Assistant Federal Reserve Agent FRED M. BAILEY, Assistant Federal Reserve Agent OLIVER S. POWELL, Statistician ANDREAS UELAND, Legal Counsel. SIGURD UELAND, A aistant Counsel Governor W. B. GEERY - Deputy Governor HARRY YAEGER Deputy Governor HARRY I. ZIEMER Controller FRANK C. DUNLOP Cashier GRAY WARREN Asst. Cashier L. E. RAST Asst. Cashier H. C. CORE Asst. Cashier A. R. LARSON MEMBER OF FEDERAL ADVISORY COUNCIL GEORGE H. PRINCE, Chairman, Fifst National Bank, St. Paul, Minnesota. HELENA BRANCH—(MONTANA) DIRECTORS R. E. TOWLE S. McKENNAN C. J. KELLY T. A. MARLOW HENRY SIEBEN 1930 1930 1930 1931 1931 - m - Helena, Helena, Butte, Helena, Helena, Mont. Mont. Mont. Mont. Mont. OFFICERS •ector R. E. TOWLE - Managing Director ishier H. L. ZIMMERMAN - A. A. HOERR T. B. WEIR Asst. Cashier Legal Counsel
@FedFRASER