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TWELFTH ANNUAL REPORT
of the

FEDERAL RESERVE AGENT
of the
NINTH FEDERAL
RESERVE DISTRICT
to the

FEDERAL RESERVE BOARD

Covering the Calendar Year
1926




Federal Reserve Bank of Minneapolis,
Office of the Federal Reserve Agent,
Minneapolis, Minn., January 20, 1927.
To Governor D. R. Crissinger,
Federal Reserve Board,
Washington, D. C.
Sir:
In conformity with your letter of November 16, 1926,
I have the honor to submit herewith the Twelfth Annual
Report of the Federal Reserve Agent of the Federal Reserve
Bank of Minnapolis, relating to operations during the
twelve months which ended December 31, 1926.




Respectfully submitted,
J. R. MITCHELL,
Federal Reserve Agent.

REPORT
OF THE

FEDERAL RESERVE AGENT
AT MINNEAPOLIS

1926
AGRICULTURAL AND BUSINESS CONDITIONS

The year 1926 witnessed the spending of the remainder
of the proceeds of the crops of 1925 and the advent of much
smaller crops selling at a lower average price. The business
effects in this district of the carryover of purchasing power
from 1925 was particularly noticeable in the smaller cities
of the district located in strictly agricultural territory during the first half of the year. In the larger cities indexes of
business activity were lower than in 1925 throughout the
year.
The crops of 1926, according to the final figures announced on December 1, were not only smaller than the
crops of 1925, but much smaller than the five year average
for the years 1920-1924. As compared with the preceding
year, all the crops exhibited decreases, except winter wheat
and white potatoes. The decreases in production as compared with the preceding year were 25 percent for spring
wheat, 34 percent for rye and 14 percent for flax. Comparisons for all the crops with last year and with the five
year average for the years 1920-1924, inclusive, follow:
Relative Size of 1926 Crops in Minnesota, North Dakota, South Dakota,
and Montana
Percent of the
Percent of
Average Crop
1925 crop
1920-1924
All Spring Wheat
75
80
Rye
66
45
Flax
86
124
Corn
96
88
Oats
54
65
Barley
66
93
All Hay
72
66
White Potatoes
104
70

The decrease in the crops was reflected in marketings.
Terminal receipts in 1926 of rye and flax declined onefourth and of wheat one-fifth as compared with 1925 totals.
The decline in receipts at Minneaolis and Duluth was from
350 million to 242 million bushels, of which 60 millions was
feed grains and 48 millions was wheat ,rye and flax. Offsetting to some extent the effect of the declines in the marketings of the crops was the movement of livestock. Terminal receipts as compared with the preceding year were



3

19 per cent larger for cattle, 14 per cent larger for calves,
42 percent larger for sheep and 5 percent smaller for hogs.
In this connection it is noteworthy that a large increase took
place in the number of animals repurchased in this district
for feeders, gains being shown in all varieties tabulated by
us, the greatest gains being 30 percent for cattle, 107 percent for sheep and 135 percent for hogs.
In determining the business effects of the reduction in
crops, declines in marketings of grains and increased marketings of livestock, it is necessary to take account of the
prices received. When terminal prices prevailing during
each month are applied to the receipts of the respective
months and totals made for each of the years, it is found
that the cash value of wheat, rye and flax received at terminals in this district declined 25 percent in 1926, as compared with 1925 and 10 percent in 1925 as compared with
1924. Similar comparisons for livestock marketed show
that the cash value increased 14 percent in 1926 as compared with 1925 and 44 percent in 1925 as compared with
1924. If the total cash receipts be combined for grains and
livestock, it is found that the totals were 534 million dollars
in 1924, 540 million dollars in 1925, and but 466 million
dollars in 1926, or a decline of 14 percent in 1926 as compared with 1925. While it is true that other products must
be considered in making an estimate of the general situation, nevertheless the declines shown for the grains constitute such a large proportion of the total as not to be overlooked.
The effects upon business of these reductions in farm
income are reflected by the total of individual debits
through selected banks at seventeen representative cities
in this district, which in 1926 totaled 6 percent less than in
1925, the decline being 640 million dollars. The resultant
effects upon business sentiment and construction projects
are reflected in the total valuation of building permits issued
for structures within municipal limits in eighteen representative cities of this district, the totals for 1926 being 21 percent less than in 1925. In strictly agricultural sections of
this district, the decline of purchasing power was not so pronounced. Sales of lumber at retail by lumber yards scattered throughout this district were but 2 per cent less in
1926 than in 1925. When the declines in business activity
of 1926 are compared with 1925 in the different months, it
is found that the debits were less in every month, except
July, the gain in July being negligible. Sales at retail, likewise, failed to show gains as compared with the preceding
year, except in the months of July and September. Sales
of lumber by retail yards scattered throughout the rural districts registered declines in April and in each of the last six
months as compared with last year. The total valuation of
building permits granted declined in every month of 1926
as compared with 1925, except in May and August.



There was a definite turning point in trade conditions
in this district after June, 1926. From January to July carloadings of miscellaneous commodities in carload lots increased relative to seasonal, whereas from March to June
carloads in less-than-carload lots declined relative to seasonal. Apprehension regarding the value of the maturing
crop caused a sharp contraction in forward buying reflected
in a rapid decline from July to December in the adjusted
index of carloadings of miscellaneous commodities in carload lots, coincident with a rapid increase in the index of
less-than-carload lots of miscellaneous merchandise. The
ratio of carload shipments to less-than-carload lots of merchandise declined in December, 1926, to the lowest point
experienced in this district since December, 1921.
FINANCIAL CONDITIONS

The year 1926 opened with larger totals for deposits
and investments in all operating banks in this district and
smaller totals for loans and borrowings than the averages
for the preceding five years. The customary spring expansion of activities caused country banks to increase their
borrowings from the Federal Reserve Bank and to reduce
their deposit balances with correspondent banks, and this
continued until the first part of September. At that time
crop marketing began, and the resulting reduction of loans
and expansion of deposits enabled country banks to reduce
their borrowings and increase their reserves until the first
part of November. The crop was late and its full effect on
banking conditions had been retarded for several weeks.
The smaller financial return from the 1926 crop was reflected in deposit totals. Net demand deposits of member
banks in cities with less than 15,000 population decreased
$18,000,000 (10 percent), and time deposits decreased
$21,000,000 (8 percent) during the year. Member banks
in cities with more than 15,000 population held $24,000,000
less of net demand deposits and $20,000,000 more of time
deposits at the end than at the beginning of the year. The
decrease in demand deposits in the larger cities was partly
accounted for by smaller balances carried for country correspondent banks.
Other changes in banks in the larger cities are indicated in the weekly reports to this office made by twentyfour selected member banks. At these banks the year 1926
closed with commercial loans ("all other loans") of exactly the same amount as a year ago, investments slightly lower and loans secured by stocks and bonds slightly higher.
Their borrowings from the Federal Reserve Bank were almost completely eliminated. Their total deposits were almost unchanged, with larger time deposit totals and smaller
net demand deposit totals.



OPERATIONS OF MINNEAPOLIS FEDERAL RESERVE
BANK IN 1926

A.

General Survey
The operations of this bank during 1926, as reflected in
the items of the weekly published balance sheet covering
rediscounts for member banks, had a distinctly seasonal
character. No change of importance took place between
the beginning of the year and the second week in February.
Expansion of borrowing began in the week ending February
10, which culminated in the week ending March 3 and was
completely liquidated, in the week ending March 10. Customary spring borrowing began during the week ending
April 21, increasing our rediscounts to a high point of over
8 millions in the week ending May 19. Practically all of
this loan expansion was liquidated by June 2. Fall borrowing began during the week ending July 7 and reached a
high point in the week ending September 1 and another
high point in the week ending October 20; and this expansion was completely liquidated by December 15. In this connection it is important to note that member bank reserve
deposits with this institution reached a higher total on November 10 than on any other date between February and
the close of the year, thereby fixing this date as the high
tide of crop marketing (coinciding this year with the tax
payment date) as it affected financial conditions during the
year.
Our total earning assets declined during the first five
weeks of the year, owing to a reduction in the holdings of
bills bought in the open market and in United States securities owned; increased during April and May, owing to
increased discounting for member banks and increased purchases of bills bought in the open market and of securities;
declined from the last week in May to the last week in June,
owing to reduced discounting for member banks and reduced holdings of bills bought in the open market; increased thereafter to the high point of the year of over 50
million dollars on October 20, owing to increased discounting for member banks, increased holdings of bills bought in
the open market and increased holdings of United States
securities; and declined thereafter to the end of the year,
due to reductions in discounts for members and in holdings
of United States securities.
The net effect of these changes upon our balance sheet
for the year ending December 31, 1926, as compared with
December 31, 1925, was as follows: Bills discounted for
member banks increased from 3 ^ millions to 4 millions;
bills bought in the open market declined from nearly 19
millions to less than 13 millions; and holdings of United
States securities declined from 19 millions to 17 millions.
Total bills and securities at the end of the year were 34
millions, as compared with 42 millions at the beginning of
the year. Member bank reserve deposits decreased from



6

53 millions to 51 millions. Federal reserve notes in circulation decreased from 70 millions to 69 millions, and cash
reserves increased from 87 millions to 93 millions.
This bank did not borrow from or lend to any other
Federal reserve banks during 1926.
The discount rate of this bank was unchanged throughout the year, at the rate of 4 percent, effective since October 15, 1924.
B.

Earnings and Expenses
The gross earnings of this bank during 1926 were
$1,622,000, as compared with $1,438,000 in 1925. Current
expenses during 1926 were $1,064,000, as compared with
$1,098,000 in 1925. The current net earnings during 1926
were $558,000, as compared with $341,000 in 1925. Miscellaneous additions to current net earnings in 1926 amounted to $80,000, and deductions from current net earnings
amounted to $190,000, leaving final net earnings available
for dividends, surplus and franchise tax of $448,000, as compared with $235,000 in 1925. In 1926, dividends totaling
$187,609 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 $26,043. The remainder, amounting to $234,381, 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
25,286,000 items during 1926, amounting to $4,336,350,000,
as compared with 26,563,000 items during 1925, amounting
to $4,012,157,000.
The Collection Department received 320,000 items during 1926, ^mounting to $151,328,000, as compared with
343,000 items during 1925, amounting to $151,044,000.
The Currency Department received and counted 37,254,000 bills, amounting to $207,329,000 in 1926, as compared with 34,419,000 bills, amounting to $191,744,000 in
1925. This department also received and counted 11,633,000 coins, amounting to $4,059,000 in 1926, as compared
with 9,504,000 coins, amounting to $3,666,000 in 1925.
The Vault Custody Department, in its service of safekeeping of securities, handled 48,649 bonds during 1926,
as compared with 58,363 bonds in 1925. This department
cut and forwarded to the owners of the securities, or turned
over to other departments for collection or credit 73,703
coupons during 1926, as compared with 49,386 coupons during 1925.
Wire transfers of funds made for member banks, including those made for the 5 per cent Gold Redemption
Fund, numbered 64,000, totaling $2,593,972,000 during



1926, as compared with 63,000, totaling $2,657,304,000
during 1925.
The Discount Department received 2,735 applications
for loans during 1926 and served 270 member banks. In
1925, 2,869 applications were received and 290 banks
served. For each year this was an average of 10 applications each from 35 per cent of the number of member banks
in the district at the close of the year. During 1926, 12,515
notes were discounted, amounting to $221,889,000, as compared with 11,524 notes, amounting to $92,374,000 in 1925.
Of the total bills discounted for all member 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

1926
91.9%
2.9
2.2
1.0
1.1
9

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

Bills purchased by this bank in the open market during 1926 numbered 4,986, amounting to $63,057,000, as
compared with 6,078, amounting to $84,712,000 in 1925.
Bills purchased from other Federal reserve banks during
1926 numbered 1,100, amounting to $20,600,000, as compared with 979, amounting to $18,276,000 in 1925.
FISCAL AGENCY FUNCTIONS

The Fiscal Agency operated by us for the United States
Government redeemed 1,025,496 Government coupons
amounting to $11,015,565.21 during 1926 as compared with
1,094,000 coupons amounting to $11,086,000 in 1925.
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 85,568 pieces and amounted to $80,771,000 as compared with 128,000 pieces amounting to $82,403,000 in
1925. In March the Treasury Department made public announcement of its willingness to purchase Third Liberty
Loan 4^4 % bonds direct from individual holders. As a result 210 proposals offering $529,000 of this issue were received from holders in this district. Of these, 184 proposals
offering $309,650 at not exceeding 101 10-32 were finally
accepted and paid for.
This Agency handled during 1926, in addition, 5,154
orders for the purchase of Government securities and 4,880
resales of Government securities, totaling $77,123,800. This
was an increase of 22*4 percent over 1925 in the number of
transactions handled. In addition, either delivery of payment or both was handled for banks and trust companies on
599 transactions in Government securities amounting to
$50,846,250. There were also 272 transactions of miscel


8

laneous general market securities aggregating $1,712,150.
Altogether, of these various transactions, there were 10,905,
totaling $129,682,200. Including short term Government
securities which were transferred by wire, delivery of
32,277 pieces totaling $67,027,350 was made on purchase
and resale transactions other than our own account. In addition, on exchange transactitons such as denominational exchange, the exchange of coupon for registered securities,
etc. 34,833 pieces were delivered, amounting to $27,432,100.
This Agency assisted in the allotment of three offerings of Treasury Certificates of Indebtedness and Treasury
Bonds during the year. In such operations 7,966 individual
subscriptions contained in 492 different applications
amounting to $47,982,900 were received. Of the latter
figure, $26,831,700 were finally allotted.
ACTIVITIES OF THE 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 $386,140,000 of new Federal reserve notes, and during this same period there has
been issued by the Federal Reserve Agent to the Bank
$373,837,000 of new Federal reserve notes. Meanwhile, the
Federal Reserve Bank "retired", or returned to the Federal
Reserve Agent $96,706,500 of currency fit for reissue, and
such reissues of fit-for-use notes totaled $94,747,500. Federal reserve notes were redeemed and destroyed at Washington since the oranization of this Bank totaling $296,815,110. 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 on December
31,1926, the amount of notes outstanding was $75,062,890,
and the Federal Reserve Agent held $14,262,000 of new
and fit-for-use notes.
Of this total outstanding ($75,062,890) there was "in
circulation" $68,891,000, and the amount of notes held by
our paying tellers here and in the Branch Office of Helena
combined and the amount of mutilated Federal reserve
notes forwarded for redemption totaled $6,171,890.
During 1926 the Federal Reserve Agent and his assistants received $32,220,000 of new Federal reserve notes
from the Comptroller of the Currency at Washington and
$13,049,000 of fit-for-use notes from our paying tellers. The
issues of new and fit-for-use notes totaled $46,702,000, as
compared with $44,330,500 during the preceding year. The
amount of Federal reserve notes outstanding with this Federal Reserve Bank increased from $73,245,840 to $75,


9

062,890 between December 31, 1925 and December 31,
1926.
Federal reserve notes in actual circulation declined
from $70,161,000 at the beginning of the year to $59,908,000 on June 16, which was the lowest point shown in
the published weekly statements, and increased thereafter
to a high point of $69,302,000 on December 29. The amount
in actual circulation on December 31, 1926, was $68,891,000.
Unissued Federal reserve notes on hand held by the
Federal Reserve Agent and his assistants amounted to $14,262,000 on December 31, 1926, as compared with $15,695,000 on December 31, 1925.
As collateral security for the Federal reserve notes outstanding with the Federal Reserve Bank, there was held
by the agent on December 31, 1926, $60,539,000 in the form
of gold coin and gold certificates, in vault or on deposit with
the Federal Reserve Board, and $16,341,000 in eligible
paper, compared with $57,420,000 in gold and $21,719,000
in eligible paper on December 31, 1925.
B.

Membership

At the close of the year, there were 766 member banks
operating, in this district, as compared with 829 member
banks at the beginning of the year. There was a net loss of
50 national banks and 13 state banks. The total membership (banks in operation only) at the close of 1926 was
divided into 694 national banks and 72 state banks. The
new members are:
Name of Bank

Farmers National Bank in
Buffalo National Bank
First National Bank in
Bloomington-Lake National Bank
First National Bank of
Peoples State Bank
National Exchange Bank in
National Bank in
Deuel County National Bank
New First National Bank in
New First National Bank,
Citizens National Bank in
Citizens National Bank of

Town

No. of Shares
Subscribed
Alexandria, Minn
75
Buffalo, Minn
18
Mahnomen, Minn
17
Minneapolis, Minn
132
Moose Lake, Minn
18
Plainview, Minn
15
St. Paul, Minn
180
Wahpeton, N. Dak
21
Clear Lake, S. Dak.
18
Dell Rapids, S. Dak
21
Howard, S. Dak
33
Sioux Falls, S. Dak
75
Wessington, S. Dak
24

NUMBER OF BANKS IN OPERATION IN THE NINTH
FEDERAL RESERVE DISTRICT
December 31, 1925, and December 31, 1926
National State Members Non-Members
Total
1926
1925 1926 1925 1926 1925 1926
1925
31
79
79
39
10
9
30
Michigan
39
287
23
21
944
1,252
Minnesota
308
1,034
1,365
76
31
27
117
112
228
2i5
Montana
80
2
485
648
563
415
146
3
North Dakota..l60
493
419
100
12
9
371
310
South Dakota..ll0
254
46
6
4
210
204
263
Wisconsin
47
Ninth Federal
Reserve Dist...744
694
85
72
2,247 2,016
3,076
2,782
10




C. Examination of Banks
During 1926, 74 examinations and credit investigations
were made by the Federal Reserve Agent's Examiners, of
which 69 were made in conjunction with state banking department examiners and 5 were independently made. In
the examination work this year, three examiners were used
throughout the year, who with their assistants traveled in
the aggregate 31,257 miles and examined banks with total
resources of $69,197,097. 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 6 banks for the purpose of obtaining credit information, or in connection with
rediscounts or collections, or to give general assistance to
member banks.
In addition to the information obtained from the Federal Reserve Examiners, 1,600 reports of examination of
national banks were received from the Chief National Bank
Examiner of this district, and 35 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 4,000, 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 1926 include the following:
Name of Bank
First National Bank
First National Bank of
Alger County
United States Nat'l Bank
First National Bank
Houghton National Bank
First National Bank
Nat'l Bank of Lewistown
Citizens National Bank

Location
Hancock, Mich.

Approved Capital
Date
3-31-26 $100,000

Munising, Mich
Iron Mountain, Mich
Negaunee, Mich
Houghton, Mich
Winona, Minn
Lewistown, Mont
Watertown, S. Dak

3-31-26
4-23-26
5-11-26
9-29-26
5-24-26
4- 2-26
2-16-26

E.

100,000
100^00
100,000
200,000
225,000
150,000
100,000

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 99 pages of printed material. The
number printed in December, 1926, was 5,975, as compared
with 3,525 in December, 1925.
A summary of national business conditions prepared by
the Federal Reserve Board was included in each issue.



11

A number of special studies were published in the
monthly reviews during the year as follows:
Statistical Abstract of the years 1921-1925 in the Ninth Federal
Reserve District. (January 29.)
Building Permits at Minneapolis and St. Paul Combined, 18851925. (January 29.)
Selection and Duties of Federal Reserve Bank Directors. (January 29.)
Farming Readjustments in the Northwest, 1920-1925. (February
27.)
Smut Infection in Spring Wheat in 1925. (February 27.)
Banking in 1925, A General Survey of the Year. (March 29.)
Progress in the Substitution of Machine Power for Animal Power
in this district, 1920-1926. (March 29.)
Importance of the Ninth Federal Reserve District in United States
Production. (April 28.)
Hog Marketing Situation, 1924, 1925 and 1926. (April 28.)
General Property Taxes in the Ninth Federal Reserve District: A
Tabular Summary for Each of the Years 1913-1925 in the States of
Minnesota, North Dakota, South Dakota and Montana, and in those
Counties of Wisconsin and Michigan contained in the Ninth Federal
Reserve District. (May 28 and June 29.)
Crop Acreages and Production, 1909-1925. (Supplement to June
28 issue.)
Cattle Prices and the Profitableness of Feeding Steers. (May 28.)
Overhead Costs in Farming. (May 28.)
The Effects of Post-War Transportation Improvement on Northwestern Business. (June 29.)
Interest Rates Paid by Bankers on Time Deposits in the Different
Counties in this District on June 30, 1923, and June 30, 1926: An Analysis with Maps. (July 28.)
The Outlook for Hogs. (July 28.)
Flour Production in the Northwest and at Buffalo: A Comparison
of trends. (August 28.)
"Help Wanted" and "Situations Wanted" Advertising in Minneapolis and St. Paul Newspapers. (September 28.)
The Banking Situation during the Crop Moving Period. (October
29.)
Freight Carloadings of Merchandise Forwarded from the Twin
Cities into the Northwestern Trade Territory, 1920-1926. (November
29.)
Forward Buying Versus Hand-to-Mouth Buying: A Method of analysis based on the ratio of carload lots of miscellaneous merchandise to
the less-than-carload lots of merchandise. (December 27.)
Deposits in the Economic Regions of the Ninth Federal Reserye
District, with Map. (December 27.)
Investment Holdings of Banks in the Northwest. (December 27.)

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 1926, officials



12

and representatives of this Bank addressed 71 different
groups, with a total attendance of 9,629 persons, as compared with 35 addresses and an attendance of 5,705 in
1925. 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 1926, the number of volumes in
our library increased from 1,106 to 1,158, not including
pamphlets, bound periodicals or annual reports. 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 re-elected
Mr. J. C. Bassett of Aberdeen, South Dakota, as a Class A
Director and Mr. N. B. Holter of Helena, Montana, as a
Class B Director for terms of three years each beginning
January 1, 1927. The Federal Reserve Board re-appointed
Mr. J. R. Mitchell as a Class C. Director for a three-year
term beginning on the same date, and redesignated him as
Chairman of the Board and Federal Reserve Agent. For
the year 1927, the Federal Reserve Board redesignated Mr.
Homer P. Clark as Deputy Chairman, and Mr. Curtis L.
Mosher, and Mr. J. F. Ebersole as Assistant Federal Reserve
Agents.
Mr. W. C. Langdon, Assistant Cashier at Minneapolis,
resigned, effective March 15, because of ill health.
Mr. Theodore Wold was re-elected by our Board of
Directors as a member of the Federal Advisory Council to
serve for the year 1927.
On December 31, 1926, Mr. Lee M. Ford resigned as
a member of the Board of Directors of the Helena Branch.
The Federal Reserve Board re-appointed Mr. C. J. Kelly as
Director for a term of two years beginning January 1, 1927.
The Board of Directors of the Head Office re-elected Mr.
R. O. Kaufman as Director for a two-year term beginning
on the same date, and redesignated Mr. R. E. Towle as
Managing Director for the year 1927.
Mr. H. F. Brown, Cashier at Helena, resigned, effective July 1, and was succeeded by Mr. H. L. Zimmermann,
formerly Assistant Federal Reserve Agent and Auditor.
The office of Assistant Federal Reserve Agent at Helena
was thereupon abolished.
The complete staff of the Federal Reserve Bank of
Minneapolis and its Helena Branch, including officers, employees and building employees, numbered 346 persons on
December 31, 1926, as compared with 384 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,
192-6
Gold with Federal reserve agent
$ 60,539
Gold redemption fund with United States Treasury
2,074
Gold held exclusively against Federal Reserve
notes
$ 62,613
Gold settlement fund with Federal Reserve Board.. 20,483
Gold and gold certificates held by bank
6,873
Total gold reserves
$ 89,969
Reserves other than gold

Dec. 31,
1925
$ 57,420
2,059

Dec. 31,
1924"
$ 73,528
908

$ 59,479
18,760
6,905

$ 74,436
19,569
5,867

$ 85,144

$ 99,872

3,152

1,608

$ 93,121

Total reserves

2,200
$ 87,344

$101,480

903

1,145

1,027

i658
3,380

551
2,870

229
4,223

Non-reserve cash
Bills discounted:
Secured by United States Government obligations
Other bills discounted
Total bills discounted

$

4,038

$

3,421

$

4,452

8

7,665
7,094
4,319

8,856
13,145
3^787

$ 17,039
621

$ 19,078

$ 25,788

55
257

216

$ 34,313

$ 41,552

$ 30,464

13,543
2,774
,....
2,159
$146,813

Bills bought in open market
United States Government securities:
Bonds
Treasury notes
Certificates of indebtedness
Total United States Government
ities
Other securities
Foreign loans on gold

18,741

14,199
2,943
2,670

13,042
2,901
3,495

$149,853

$153,309

12,615

secur-

Total bills and securities
Uncollected items
Bank premises
All other resources
Total resources

7,569
1,841
7,629

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

$ 68,891

$ 70,161

$ 71,761

50,946
1,567
901
152
$ 53,566

53,071
1,263
272
362

55,967
1.636

$ 54,968

$ 58,0.25

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

12,858
3,064
7,527
907
$146,813

13,149
3,183
7,501
891

11,883
3,270
7,497
873

$149,853

$153,309

69.8

78.2

,

Ratio of total reserves to deposit and Federal reserve note liabilities combined (per cent)
76.0
Contingent liability on bills purchased for foreign
correspondents
% 1,806



14

$

2,231

J67
355

$

1,537

Earnings and Expenses of Federal Reserve Bank of Minneapolis

Discounted bills
Purchased bills
U. S. Securities
Deficient reserve penalties
Miscellaneous

EARNINGS
1926
$ 310,424
405,511
723,348
16,473
166,577

1925
$ 231,342
440,784
676,696
17,414
72,105

1924
$ 578,447
84,269
848,070
40,175
58,109

$1,622,333
1,063,757

$1,438,341
1,097,829

$1,609,070
1,065,1.67

558,576
79,773

$ 340,512
39,367

$ 543..903
170,570

166,272
20,870
3,174
190,316

126,411
,10,347
8,167
$ 144,925

310,&62
48,938
25,571
$ 385,371

448,033

234,954

329,102

187,609
26,043
234,381

193,560
4,139
37,255

202,828
12,6.28
113,646

$ 125,552
25,568
375,112
93,344
645
300
991
8,256
45,723

$ 121,350
25,576
429,4.93
67,1,48
5.&S
246
1,087
9,052
52,454

23,006
29,884

21,867
23,4.63

31,793
80,031
7,931
19,757
7,889
5,769
21,975
61,597
9,553
14,424
22,035
22,891
32,094

29,600
1,580
426
1,4.68
43,399
7,310
23,998
74,683
10,093
16,175
38,0.63
20,891
36,645

$1,066,120

$1,056,633

28,255

6,796

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
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

CURRENT EXPENSES
Salaries:
Bank officers
$ 135,681
Special officers and watchmen
25,958
Clerical staff
357,223
All other
80,091
Governors' conferences
568
Federal Reserve agent's conferences
288
Federal Advisory Council
824
Directors' meetings
7,289
Traveling expenses*
35,222
Assessment for Federal Reserve Board expenses
,.
22,596
Legal fees
30,701
Insurance (other than on currency and security shipments)
28,246
Taxes on banking house
82,713
Repairs and alterations, banking house
4,540
Light, heat and power
_
19,762
Rent
Telephone
5,816
Telegraph
23,277
Postage
~
64,373
Expressage
8,437
Insurance on currency and security shipments
14,091
Printing and stationery
25,568
Office and other supplies
19,725
All other expenses
34,810
Total exclusive of cost of currency
$1,027,799
Federal reserve currency (including shipping
charges):
Original cost
33,597
Cost of redemption

2,361

1,738

$1,063,757

Total current expenses

3,454
$1,097,829

$1,065,1.67

REIMBURSABLE EXPENSES OF FISCAL AGENCY DEPARTMENT
Salaries ...„
$ 12,270
$ 15,290
$
41,060
All other expenses
5,270
6,123
10,171
Total
$ 17,540
$ 2,1,418
$
51,231
•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, 1927
DIRECTORS
Class A
1927
1928
1929

-

1927
1928
1929

PAUL J. LEEMAN
J. C. BASSETT

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

1927
1928
1929

WESLEY c. MCDOWELL

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

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

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

Class C
HOMER P. CLARK

GEO. W. McCORMICK
J. R. MITCHELL -

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.
J. F. EBERSOLE, Assistant Federal
Reserve Agent.
FRED M. BAILEY, Manager, Bank Examination Department.
ANDREAS UELAND, Legal Counsel.
SIGURD UELAND, Asst. Counsel

R. A. YOUNG
Governor
W. B. GEERY
Deputy Governor
B. V. MOORE
Deputy Governor
HARRY YAEGER
Asst. Deputy Governor
Controller
FRANK C. DUNLOP
Cashier
GRAY WARREN
Asst. Cashier
L. E. RAST
Asst. Cashier
H. C. CORE Asst. Cashier
HARRY I. ZIEMER
Asst. Cashier
A. R. LARSON

MEMBER OF FEDERAL ADVISORY COUNCIL
THEODORE WOLD, Vice President, Northwestern National Bank,
Minneapolis, Minn.

HELENA BRANCH—(MONTANA)
DIRECTORS
HENRY SIEBEN, Chairman
C. J. KELLY, Vice Chairman
T. A. MARLOW
R. O. KAUFMAN R. E. TOWLE

1927
1928
1927
1928
1927

Helena,
Butte,
Helena,
Helena,
Helena,

Mont.
Mont.
Mont.
Mont.
Mont.

OFFICERS
Managing Director
R. E. TOWLE
Cashier
H. L. ZIMMERMAN




W. A. CUTLER, JR.
T. B. WEIR -

Asst. Cashier
Legal Counsel