1927 Directors Frb Minneapolis

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Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

To the DirectorsTfae results of our 1927 operations are offered la tbs

fora of statements and tables covering the various functions per- feraed„ ill natters affecting the profit accounts of the Basic and the reasons for expansion or contraction in any of the serricet which we perform are explained in the writers of each particular fmetiono Connents and tables are mostly confined to Minneapolis, the Helena statements and tables tasking a separate reporto

Some progress has been made in improving our operating methods during the year and the results should be more apparent In 192So The expense total has not been grefctly reduced although there is adequate rente* for the additional costs in seme of the tactionso It it evident that tome expense items will be lower in 1928 than for 1987 but the site of the staff needs considerable reducing to offtet 1928 adjustments* The amount of ear yeerly t m t it entirely tec high end this natter should get considerable attention0

All the operations of the bank are being efficiently performed at thit time and the records indicate the true condltlcno

HespectftUy ttitaittcd.


AccountingComments ................... *.............. 65-66Number of employees and cost of units............. 66Member bank balances........ ................... 68Transfers and Code Unit.......................70-71

Administration Costs.....................*.... .......37Auditing

Comments.......................... ......... 44-45

Batik PremisesMinneapolis building..... ................ ..26

Helena building.................................27Depreciation charge-offs and reserves........... ..28Comments........................ ............29-31

Cafeteria................ ..... ......... .......... 38Closed Banks

Comments... .................... ..............50Cost of function and number of employees.............50Collection expense allocated to various banks.....51-67

CollateralComments... ............................. .....64

CollectionsBon-C&sh Collections

Comments...................... ..............f78Cost, number of employees and number, of itemshandled................................... 74

Comparative statement, number of items receivedfor collection. .......... .74

Check Collections - ©pansit Department...»*« -... 75-82Coupons

Comment s........ ......... .............. *...... 63Cost of function, number of employees and voluae

of work handled......... ........ .............63Currency and Coin

Comments........... ............58-59Humber of shipments received and sent................59Original cost, cost of redemption and shipping

charges............. ...................... ..59Functional costs, number of employees and volume

of work handled................ ...............60Amount of currency reoelved from and shipped to member and non-member banks.......................,61

Interdistriot movement of P. K. Rotes..............62Coin shipments received and sent...... ......... ..59

Custodies........................................ .64Deficient Beserve Penalties... *............... . 68

DiscountsComments....... .......... .............. . .45-47Cost of function, number of employees and

volume of work handled.. *..... ..............., .48Statement of operations...................,..... .49Bates. .... ................. 12


"'aminesComparative statement 1527-1925............... 11Gross ournings and :.:u-'.bhly averages.*.......... 12Average Rates on earring assets.............. 12Comments......... ...................... 13-16

Sxper.33 3Comparative statement 1S27-1926-1925.......... 17Ccnur.er.es,,.....................................................• • ...«.* * 18-24Administration Costc-Gc-ner l overhead.*........ 37Coupfirbtivo Statement by 'incticns-Minnjapolis.. • 39Comparative statement by Functions-Helena..... *100Reimbura?.blo expenditures.................... 25

Failed Banks................................. 60*57Federal Reserve Agent's Funoticns

Comment o.................. ............... 63Number of employees and expenses of various

Units............................... 83-64Bank Examinations.. *...................... 85-90Federal Reserve Notes..................... 91-95

Federal Reserve Club* • ........................... 40Federal Reserve Notes

Comments............................. . 91-92Statistics.............................. 93-95

Inter district Movement.................. 62(See Also Currency)

Fiscal Agency FunctionsComments*............................... 96-97

Franchise Tax paid since organisation***•.........0. 6Functional Reports

Comparative coat of various funotions-Min-eapolis.39Comparative oost of various functione-Helena... 100Administration costs-General overhead......... 37

(Functional reports will also be found under department headings such aa Currency, Discounts, etc.)

Furniture and BquipmftntAmounts charged out of earnings since organiza

tion........... ........ ............. 25Comments.... *•.......................... 32-53

General Service FunctionsCoxor.ents....... ............. 41-42Number of employees and oost of various units*.•. 43

Oeneral* Overhead - Administration Costs............ 57Gold Holdings

Reserve Position*»...................... . S7-68Amount held by bank and F* R» Agent........... 69

Helena BranchComments................................. 98-99

.Comparative functional expense report**.*.... * 100Bank premis*e»«*.................. . 27-28

Dividends paid sine* organisation................. C


Investment a 0 o 0 0»o o *«»®»a„.. ..................... 69Leased Wire....„.... ......... ..................... 72Liabilities, Comparative Statement 1927-1926........... 2

Member BankaReserve balances........... ....................68Deficient reserve penalties...................... 66Changes in membership... ......... ........... 87*90

Non-Cash Collections....................*......... 73-74Personnel

Comments...... ......... .......................34Coat of personnel function............ ..35

Changes in staff during 1927.....................35Welfare and cafeteria - comments...... -........•••38Monthly basis of salaries by functions...............36Humber of employees and expenses by functions........35

Federal Be serve Club...................... ..40Profit and Loss

Statement in detail for year 1927..... ........... 3Summary report for year 1927. ..................... 4Account since organisation.......... ......... . 5Dividends, surplus and franchise tax....... ...... 6Comment s.................................... 7-10

Beimbursable Expenditures............. .......... . .25Reserve Position..° ........................67-68Resources, Comparative statement 1927-1926.............. 1Salaries

Monthly basis by functions....................... o.. .36Securities

Collateral unit.. ..........................*....64investments held. • ...............................69

SurplusDetail statement since organization............. . 6

Telegraph........... ............................ 72Transfers of Funds

Comments... ............... ................. 70Functional costs, number of employees and volume

handled........ ....................... ......71

Transit FunctionsComments.. ........................... ....... 75-76Costs, number of employees and volume handled..... .77Statistics......... ......................... 78-82

Welfare 38


COMPARATIVE STATEMENT OF RESOURCESFBDERIL RjSSRYB BAMK OP MINNEAPOLIS AND HSLERA BR ANCH

Deoqabor 31, 1927. December SI, 1926.Gold Redemption Fund - F. R. Notos 1,422,991<>67 $ 2,075,829*64Gold with Federal Reserve Agent - - - - - - - - - 49,728,666.00 60,558,090.00Gold Settlement BUnd - - - - - - - - - - - - - - - 16,650,517.73 20,463,291*01Gold Coin ................... - - - - - - - - 5,615,675*00 3,222,546.00Gold Certificates - - - - - - - - - - - ---- -- 1,556,500.00 5,650,500.00Legal-tender notes - -- -- -- -- -- -- -- - 632,221»50 466,117.00Silver certificates - -- -- -- -- -- - — - 3,147,106 o 00 2,516,602.008tandard silver dollars - - - - - - - - - - - - - 249,756.00 569,761.00lAtion&l bank notes- - - - - - - - - - - - - - - - 1,021,500000 664,100.00Federal Reserve bank notes - - - - - - - - - - - - 2,000*00 600*00Subsidiary silver, niokels and oents - - - - - - - 199,792*10 217,972o06F. R* Rotes of other F. R. Banks - -- — - -- - 1,052,160*. 00 582,050*00Our Federal Reserve notes on hand - - - — - - - 4,878,790.00 5,174,195,00Mutilated F. R. notes forwarded for redemption - - 807,600*00 997,600*00Bill* discounted ............................ 1,481,495„06 2,242,422*09Meaiber banks collateral notea- - -- -- -- -- - 423,800000 1,795,642.00Bills bought in open market- - - - - - - - - - - - 18,310, 951 *40 12,614,674*84F&rtloipation in investments through foreign brinks 7,661067U* S. Government securities- - - - - - -- -- -- 23,899,711oOO 17,059,211o00Kunioipal warrants -- -- - - - - - - - — — - 120,000000 120,750o00Federal Intermediate Credit Bank Debentures- - - - 500,000*00 500,000° 00

Premium on U. S. securities- - - - - - - - - - - - 3,608o44 7,950*69Premium on Federal Into Cr. Bank debentures- - - - 556*20 578*00Interest accrued- - — 70,780o75 62,426.66

current....... , - - - ............... 1,048,746.15 1,065,757*20Furniture and equipment- - - - - - - - - - - - - - I0,784o93 20,870*48Dividends accrued- 180,726.51 187,609.25Transit items - - - - - - - - - - - - - - - - - - 13,148,801o41 12,5o9,519.58Sxohanges for clearing house - -- -- -- -- -- 900,611,, 27 359,485<,64Checks and other cash items- - - - - - - - - - - - 80,530*11 241,792.13

Banking House:Land ----------------------------------- 505,520066 605,520.66Buildings including vaults - - - - - - - ---- 1,918,281.50 1,975,720,14Fixed machinery and equipment - - - - - - - - - 636,162.54 636,162o54

Overdrafts----- — — — — - - ------- 938o00Coupons paid before maturity - - ------------ - 51*22 55.57Deferred charges--------- -------- - — - — 19,625*76 19,396.71Claims account closed or suspended banks - - - -- 2^580,695*42 3,384,450.52Property acquired under foreclosure- - - - - - -- 42,908.46 49,260*26Suspense aooount temporary investments - - - - - - 779,498o01 181,567.26Due from foreign btvnks - -- -- -- -- -- -- - 14,634 c 32Difference account - - - - - - - - - - - — - - - 639 a 62 468.67Fiscal Agoncy expenses, reimbursable -- - - - - - 1^762^94 2,179053•ar Finance Corporaticii expenses, reimbursable - - 272n25 120^60Reimbursable expenditures - postage - - - - - - - 195*05 194,26


COMPARATIVE STATEMENT OF LIABILITIES FEDERAL RESERVE BAEK OF MINNEAPOLIS AND HELENA BRANCH

December 31 c 1927 December 31, 1926Federal Reserve notes outstanding - - - - - - - - - 66fl9lOc658oOO $ 76,062,890P00Member banks ~ Reserve account - - - - - - - - - - - 54*723,922.93 50*756,122*20Funds of olosed banks held for reoeivers

and others - - - - - - - - - - - - - - - - - 112*105e80 189,936 0 74U* S. treasurer - General account - - - - - - - - - - l,7700529o94 l#333#0llo03Due to foreign banks - - - - - - - - - - - - - - — - 1380847o84 900p998.89Non-member banks - Clearing account 43,739*46 29r026 12Of fioers9 checks 197 0090c 00 92,791c75Federal Reserve drafts - - - 31c000o00 20,000*00Other deposits • • o « o ~ o o « n u L Joo*oa><t.««® 20309o68 9,633 ©47

Government transit items - - - - - - — ~ - - - - ~ 161,423<>09 176,379o56All other transit items - - - - - - - - - - - - - - - 12,848e793026 12^681,820»94Aoorued taxes other than franchise tax unpaid - - - - - 83,702o14 81*044*90Capital stook suspense account - - - - - - - - - - - - 8,100*00Sundry items payable - - - - - - - - - - - - - - - - - 7,613e68 15,738*55Suspense account general - -- -- -- -- -- -- -- 12 p913»10 5,096*33

Discount on U. So securities 18,660o79 39,506*25Unearned discount - - - - - - - - - - - - - - - - - - - 63,688*11 67,026*84

Reserve for depreciation on U. S. bonds - - - - - - - 3,444*00 3,444*00Reserve for possible lossess account failed banks 604a378e39 700,000*00 Reserve for depreciation on fixed machinery and

equipment - Minneapolis 136,434023 64,428088 Reserve for depreciation on fixed machinery and

equipment - Helena 7,985*33 6,374©43Reserve for depreciation on building - Minneapolis - - 71,331o26 38,814*40Reserve for depreciation on building - Helena - - - - 70,518c74 67,818*74Special credit account closed banks - - - - - - - - - - 156113026*69 1*543,570.77Discount earned - -- -- -- -- -- -- -- -- - -- 552 3509o01 715,935*16Interest earned - - - - - - - - - - - - - - - - - - - - 754,339*91 862p789000Penalties on deficient reserves - - - - - - - - - - - - 130404o64 160473ol2Miscellaneous earnings - -- -- -- -- -- -- -- - 69-,777 o 93 27,136037Profit and Lo se - -- -- - 38,233o91 76,996o94Capital stock paid in 3,0093400o00 3,063,750*00Surplus........ .............- ............. - 7,527g027o95 705QO,985.63

S 161,494*705.56 $ 166,149,438*99

2Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL BES3HV2 BASK 07 KIHKEAPOLIS •of T ^ o f l^ H T ^ M ' X ro o u n 'i for 1927 ,

Disoount •&med on bills discounted - Minneapolis * » * •» • . $ Disoount earned on bills discounted - Helena Branch. « • 0 « •Disoount earned on bills purchased • • • * . . •Interest earned on United States securities • • • • • • • • •Interest earned on Federal Intermediate Credit Bank Debentures Interest earned on Municipal Warrants • • • • • • • . . • • •Interest received on past due paper of olosed banks . 0 . . .Interest earned on delayed wire transfers « . • . .........Income from Ranking house - Helena Branch •Deficient reserve penalties - Minneapolis........Defioient reserve penalties - Helena Branoh •Het profit on U. S. Securities sold .....................Participation in transactions with foreign banks ....... »Sale of waste paper........ . .......................Service charges on collection items returned - Minneapolis* •Service eharges on oolleotion items returned - Helena 0 • . eMonthly letters sold. • . • ...........................*Clearing house fines.......... ........ ........... . .Vet oommissions on hail insurance ................... . •Expense Ourrent - Minneapolis....................... . 956,938.00Expense Ourrent - He Jena.......... .................... 91*808*10Furniture and equipment.......................<...•• 10,785.95Be serve for depreciation on fixed machinery and equipment - .

Minneapolis . . o • • . . 62,005.56Helena Branoh . ....... 1,610*90

Reserve for depreciation on building - Minneapolis . . . . . 5,666o8SReserve for depreciation on building - Helena Branoh. . . . . 2,700.00General Differences - Minneapolis ....................... 6o95Tellers and ooupon differences - Minneapolis.............. 414.48Clearing differences - Minneapolis . » .......... . . . . 18.82Collection differences - Minneapolis. . .................. 1059Transit and return item differenoes - Minneapolis......... 116.89Transit and return item differenoes - Helena Branoh . . . . 0Tellers and ooupon differenoes - Helena Branoh. • • . . . • » 124o88Recovery of expenses incurred in oonneotion with olosed bonksSales and allowances of old furniture and equipment .......Transit items whioh oould not be charged back to our endorsers -

account failed banks ............................. . 6,509.00Compromise settlement of claim made by Citizens State Bank,

St. Charles, Minn, on transit item, acoount olosed banks . 82.50Settlement made with Agricultural Loan Agency of the var Finance

Corporation on account of negligenoe in handling remittance sent us by State Bonk of Argyle, Vinn. to apply on note heldby War Finance Corporation................. . 600.00

Compromise settlement with 8heldon Bros, on account of agreementto divide crop proceeds for year 1926. • 600.00

Drafts drawn by Farmers State Bank, Hingham, IJont. on Metropolitan Natl. Bank, Minneapolis, Minn, sent us by our representative unpaid and unoollooted acoount of suspension of formers StateBank, Hingham, Mont........................ . 2,076.93

Che ok s returned to us account of forged endorsement - F. W.Woolworth oheoks - lawsuit pending in New York......... 245.04

Recovery of transit items previously charged off..........Difference between amount allowed and amount rocovered on

unourrent coin.......... ....................... .Recovery of protest fees on transit items account closed banksNet profit on sale of U. S. Securities...................Adjustment allowed Jo 0. Robertson & Co. on account of missing

parts of two mechanical coal stokers which we sold them in 1926 45.00 Dividend on Equitable Life Assurance Sooiety Policy #6208673 -

Employees group life insuranoe (1926 proportion) . . . • •Interest paid on delayed collection credits • • • • • • • . . 47o07Settlement made with Member Banks for lost coupons. . . . • . 7.44Recovery of L. L.Coupons matured Deo. 15,1927, previously charged

off on aooount of having be^n paid several years prior to maturity Balance due from closed bank representative on acoount of advance

for expenses August 4, 1925 ........................ 55 00Dividends paid ....................................... 180,726o51Transferred to Surplus P\ind(10£) of balance of net earnings II,535ol0Franchise tax paid to United States Government - (90 of b:.la:iCo

of net earnings).......... . . ................. , 103,815o905TTErCTRSTHr

$ 179,460.8912.756.17 360,292.96 707,598.948,808.97594.78

37,537.8269.8415.00

9,725,23 5,681.4146,795.4622.268.17 187o19

124.0418.75 26 1397.00

1,179.68

7.4851,295.02

880.66

20.3391.254.18

14,922.20

1,281,, 54

8.72


FBOSSAL HBSBRYB BAM OF IHNNBAPOMMI AND HBLPA BRANCH

SUHSART RJ3PQRT OF EAR3TOI0S, ttPKHSBS AMD PROFIT AND LOSS ACCOUNT DPRIHG 1927

Burnings # 1d390p081<j49Current Expenses X00480T46ol5Current Net Earnings

Additions te Current Net Earnings - - • — - -

Deductions trm Current Net Earnings*2% Reeerre for depreciation on, Buildings t

Minneapolis Building -b — ----. . . 50665o68Selena Building 20700o00

lOjtf Reeerre on fixed machinery and equipments

Minneapolis Building - - - - - - - - - 820006o38Helena Building -------------- 1 p610 o90

Furniture and Equipment - - - - - - - - - 100783o93All Other - - - --------- 10^951 o 57

Total deductions - - - - - - - - - - - - - - -Net Saminge available for dirldends, surplue

and franchise tax - - - - - - - - - - - -Dividends Paid - -- - - -- — -Transferred tO Surplus AoconntFranchise Tax paid United States Government- - ~

$ HlotMoU 48.809.91

* 93f)71Toli

* 2**.077o81I 180#728oCl

ll,635al0 108^818090

f 290oOf7oBl

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FUDKRAL m i m w BMK OF lOTrSAi'GLI!; A’JD HBLKHA BRA'TCH

STATBMSTf OP EAPJ'INGS, BCi^TSSS A*TD PROFIT A?!D LOSi: ACGOWT'.T ... . T '” l“" T'"Iimi

Sarnings #26,137,061oCurrent Expenses - ® - « • • m « o o o o u m « i»« 10,072,060*Currant let Earnings* u ci o r d o u o o o i o o o o a o o * $16,065,001.

ADDITIONS TO CURK3KT niST SAR‘M?I0S|Withdrawn from reserve for depreciation on. U« S* Bonds- 143,469*All Other m m m m m rnmmmmmmtne:tmmrntm+mmmm 278,178#

TOTAL ADDITIONS t-> ** • *•*»••*= - *»• — •*«*»«»«» 421,154? >

DSPOCTIOIIS FROM C.KRff'T NsST SARNIHGS*Bank Premises Depreciation • • fi) «» o u t ) < j u o o o - 4a) $ l,013,858o Furniture and Equipment(including $40,00 for vault

ir New York Life Building) 426,812.Reserve for possible losses * * • • • - • • • • • • -(b) 700,000*Reserve for depreciation on U* S* Bonds o » * . » « « * * » 146*915#Other Real Sstate - ?!ev; Building sites

Expense » * * 0 * « « * * * *0COo4O7#Inoome o * o * * « « « « » « 350800*

?!et Expense • • • • • • - • • • • • • • • • 24,607.All othor 99,58$*

TOTAL DEDUCTIONS WT4H',723VSet Deductions 1*990*076*Het Earnings o co • o «* « a « o u c ) o « 3 « o o « • o o o §14*074,925*

distribution of *'et BarningssDividends paid. 2,368,661#Transferred to Surplus - - - - - ~ (o) 7,538,563oFranchise Tax paid to U* S* Gover ment ® 4,167*701*

~ ♦ u .w .w : 1

<») In addition to t'ds amount #500r000o was transferred from surplus to- reduce book value of building Deoonber 31, 1927* The total of bank premises depreciation to close of December 31, 1927, therefore is #1,513,858o

(b) During the year 1927 losses on closed bank paper amounting to #95,621*61 were charged off* Tho balance of Reserve for possible losses as of the dose of December 31, 1927, therefore is $>04,37G*39o

(c) On December 31, 1927, $500,000. vrns transferred from surplus to reduce book value of building leaving a balance in surplus account of ^7,038,563.


1)1 VXD .* DS PAtD SI o:i ORGA rI2ATX0?? «. BY YSARS

x*lo 57 * 719 o 871917 563,894*191918 168,102®971919 - 180,186*211920 - 195r870o651921 - 211*657.031922 - 213-774©011923 - 212,732o6S1924 - 202,827o981925 - 193 559o461926 - 107.609• 25.1927 o 180,726.61 Tots,! ' > 2 3^8 ,660o 81'

DETAIL STATSiiCT OF SURPLUS ACCOST SINCB ORCAIIIZATIOy

Dwaber 31, 1913 Sfereh 4, 1919 4\sm 3 0 , 1919 D#*<tab#r 31, 1919 Smm 30, 1920 December 31, 1920torn* so, 1 9 aDtliember 31, 1921 Dii«Bib«r 31, 1922 DftSsmber 31, 1923 IJaoember 31, 1924 December 31, 1925 Dt*«ab«r 31, 1926 M > i r 81, 1927

Total «►•*»«tmitDsoeaber 31, 1922 Additional franchise tax

£aid for the years 1920 and 1921 « - *December 31, 1927 ?rith&ra»m from surplus

'5 lo reduoe book value of building «* « - <°500o000o00 fialftnse la suxplus aooount December 31, 1927 ~

m * n |9 from Reserve for. Franohis^ Taxm to Surplus from Profit and *«o»sH ii n11 n « itn n n t»» •t it n«t » H wn « II «n w It «ti IT II nn II n Mn tt m Hm II n II

m mmcs e* •» «* \« » •» o c.> et> <-3 e. • at. e» * <

452,423o36

ca e» o n «9f

I 37p500«00 6880871.32688^6?lo62904,357.40

lff249r399o04 lp609,24l*56 1,801aV06o54

323,12lo95 165p407©67 56p892el0 11r272®25 12c627o39 4,139o45

26,042*32 11,535o10

TT&ttytoSia

552*423.36

STATEMENT OF TOTAL FRANCHISE TAX PAID SINCE GRGAtflZATIOMDosaaber 31, 1916, Trsnafer from Profit and Loss Difsabsr 31, 1920 * * *Jtms 80, 1111 * • •December 31, 1981 " ” ” ,December 31# 1922D**«nbcr31, 1982 BHiabsr 31, 1988 2>*««aber 81* 1994 Dtitobsr 31, 1986 0#8#mber 31, 198$ DcMaberSl, 1927

f»t*l

Transferred on aocount of underpayment years 1920 and 1921

Transfer from iVoflt and LossM II H« « IIn n ii« a «» n *

$

> 37,600.00 524c233.68

1,284,497.68 X,166(468.98

62(483.366X2,028.98101,460,26113,646.6837,268.04234,380.91108,815.90

T zm m . w


PROFIT AND LOSS

Total income for the year 1927 was 11,458,540*84* The current transactions of the year brought earnings of 11,590,031*49 to which must be added $48,609*35 representing chiefly recoveries of expense incurred in the collection of paper at dosed banks prior to 192? and the proportion of profits taken on United States securities sold in 1927 whioh had been earned in prior years.

Recoveries of interest and expense from closed banks was very muoh less than in 1926. One year ago we obtained 1116,434*12 in past due interest and $75,863*49 of expense. For 1927 our recoveries wore $37,537.22 of interest and $51,295*02 of expense*

On March 16, 1927 we exchanged our Second Liberty Loan bonds for Treasury Notes Series A-1930-32. Some of these bonds had been obtained at a premium and others at a discount. Our net profit on the exchange of 15,058,750 Seconds was $14,922*20. These securities having been in poraanent holdings prior to 1927, we plaoed the profits on the exchange in Profit and Loss Account. The Treasury Department in requesting the exchange before the callable date, November 15, agreed to pay the interest on the bonds from

*Maroh 15 to May 15. In this nay we obtained $21,905*26 of Interest whioh m s credited to Miscellaneous Earnings,

From the disposal of old equipment we obtained $880*65. The 1926 proportion of return premium on our policy covering the lives of employees •mounted to $1,2810 54. All other items which comprise our current income will be commented on in the section of this Report devoted to Earnings.

The total obtained for the year was $264,000 less than the amount reoeived in 1926, the reduction being approximately the seme as the amount available for Surplus and Framohise Tax at the end of 1926. However, lower expenses and requirements for dividend and depreciation allowances made possible the transferring of $11,535.10 to Surplus and the paying of $103,815.90 to the United States as a Franchise Tax.

The complete disposition of our earnings was as follows:

CURRENT EXPENSES

Minneapolis $ 956,938*053019na 91,808.10 §1,048,746.15


Operating costs as given above are $9,316.32 lower at Minneapolis and $5,694.73 lower at Helena than the similar costs of 1926. It was ap

parent at the beginning of 1927 that the savings brought about in 1926 could not be duplicated without radical reductions in the Staff and this same condition is apparent for 1928. Elsewhere in this Report the expenses are classified, comparisons made with the like expenses of former years and some of the reasons given for the likely trend in 1928.

Miscellaneous Losses assumed during 1927

Transit Items $6,509.00On advice of counsel and under authority from the Executive

Committee| losses in connection with transit items sent to a number ofbanks which closed were charged off, negligence being apparent on our part.Claims have been filed by us but there is little likelihood of any reoovery.The amounts comprising the above total were as follows:

Security 8tate Bank, Hew England', N. D. #2,347.91Farmers State Bank of Rhame, S. D. 1,053.00Winner State Bank, Winner, S. D. 1,861.62Farmers State Bank, Hingham, Mont0 1,017.60Various other banks 228.87

16,509.00Drafts Received from Farmers

State Bank, Hingham, Mont. charged off $2,076.93This loss resulted through our representative purchasing drafts

from the Farmers State Bank, Hingham, Montana and sending them to us in payment of obligations of the Hingham State Bank. The Metropolitan Na

tional Bank, Minneapolis, upon whom the drafts were drawn, returned the drafts on account of the suspension of the Farmers State Bank.

FUBHITURE AND EQUIPMENT

Minneapolis $ 9,669.28Bilena 1,114.66 $10,783.93Under instructions of the Federal H*serve Board, all furniture

and equipment purchased during the year shall be charged against Profit

azidJU>ss at the close of the year. Our total for 1927 is approximately

what the costs of a normal year should be. Our requirements for 1928

will be muoJi heavier.


BBS

MinneapolisHelena

102,006*551,610,90 $63,616026

One year ago $72,006.35 was added to the depreciation reserve,this amount inoluding an adjustment for 1926 on aooount of the Federal Reserve Board having approved the allocation of 1100,000 of architect*s

fees to fixed machinery and equipment. The normal yearly allontnoe will jaow be $62,006,36 and represents 10 per oent of the oost cf our Halid machinery and equipment. The $1,610,90 charged for Helena represents the regular allowance made yearly for the last six years. Total reserves accumulated to date are $198,439*58 for Minneapolis and $9,696*23 ffcr

Helena, Helena reserves are carried on books at Minneapolis,

depreciation reserve aooount due to changes in the estimated replacement oost of our building. Under the System policy of the Federal Reserve Board, the book value represents replacement value. On this replaosnent value the Board allows a reserve to be set up at the rate of 2 per cent each year. In December we were authorized to withdraw $600,000 from Surplus Aooount at the end of the year and to apply this amount in re* duoing Building Account, After this entry had been made, our book value for the building is $l,283,281o50. The 2 per oent allowance on this amount for three years is $76,996.89, As th© amount already reserved is $71,331,26, we were authorised to charge only $6,665,63 at the close of 1927, We have, however, brought our building figures nearer- to the realisable value and our depreciation allowance yearly from now on will be $25,665o63.

oost is fixed at $135,000 and the depreciation reserve now amounts to $73,218.74,

RESERVE FOR DEPRECIATION OH BANK BmDINOMinneapolisHelena

$ 8,665063 2,700,00 I 8,366.63

For several years past we have had to make revision# of our

The Helena values and allowances have not changed. Replacement

■Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

giFFERfflCB ACgQOWf (Debit)Minneapolis I B58« 51Helena JL17»42 | 675.93

Of tha Minneapolis total $414*46 consisted of differenoet in the. oash and coupons. We had assumed that by installing money oountlng maohines tha number of errors would deorease, Jhls hat not baen tha oase although it has not baen olaarly established the maohines are to

blame* Counterfeits to tha amount of $75,00 are included in the above amount. Included in tha Branch differences is a £100* shortage reported by the Flfst National Bank, Wibaux, Montana* The notes fnaa which this shipment was made were put up by Minneapolis and verified by Halena.No claim was made against our insurance and .we accepted tha loss.

DIVIDENDS PAID $180,726,61The payment for 1927 is the smallest of any year since 1919.

There has baen a net reduction in Capital Stock holdings eaoh year sinoe 1922. At tha oloae of 1927 paid in Capital Stook was $3,009,400 and a reduction of $64,350 sinoe December 31, 1926. Dividends paid for 1926 were $187,609.25 ar.d tha total paid since organisation $2,368,660,81.

SURPLUS AND FRANCHISE TAX After providing for all expenses and ourrent losses, setting

aside the reserves approved by the Federal Reserve Board and making payment of the regular dividend, there remained $1 1 5,5 5 1.00* Under the Law

10 per oent of this amount or tll,5&&«2£) wfci added to Surplus Account and the remainder, $103,£l5f90t credited in the aoeount of the Treasurer

of the United States £8 a franchise tax*Total 8urplus from Earnings sinoe organisation £7,538,563.05 Total FiyE8h4.se Tax par.fr.onts sinoe organisation 4,167,701.20

CHARGE AGAINST ACCUMULATE) SURPLUS After the closing of our btsoks oft Mftenber 31, 1927, a charge

of £500,000 was made against Surplus Account and like amount applied to reduce Building Aooount* Including the amount transferred fron 1927 Earnings our Surplus is now $7,038,563*05.


COMPARATIVE STAmaHT 07 3R0SS 7.ARHITOB FEDBRAL RflSBRVB BANK 0? MI?r NAPOLI S AND KSL3STA 3RA2TCH.

Earnings FromMinneapolis■ -J W g ____

Helena Sr^nch ... 1927

Combined1927

1326 1925

1^,755-17 $ 192,216,06 $ n o , 23.71 & £05,511^

231,3111 87360,292.95 ^ 0,783 .93707»598c9^ 723.3^7-*J5 676.696,32

g,808c97 16 ,567.66 -59^78 3?5.50

5,980.29180, Jk

1 1 ,1 1 1 703,6fflL: '4l 13sHo c6U 16^ 73.12 1 7 ,Ul^t 50

15,00 15.00l l 6,U3U, 1237,337 & 36,652.70

69; 6U 69 6U , 73 98 182 88^ ,7 9 3 ^ 5 2^,533 ^ 19.599 1822,268,17 1 928,22 3 . 605.Ul

127,19 250.28 218,13!So75 i^2c 79 220o29 192=93

2% 13 29o09 2^9997oOO

1*122,56...-17kc00 336 00

Discounted Bills Purchased Bills United States SecuritiesFederal Intermediate Credit Bank Debentures Municipal Warrants foreign loans on gold Deficient reserve penalties Income from banking bouseInterest received on past doe paper of closed banks Interest on noncurrent funds.delayed wire transfers,etc. ITet profit on U„ S securities sold Participation in trcnsaotions with foreign, banks Sale of canceled stamps, waste paper, money bags,Service charges on collection items returned unpaid Monthly letters sold Clearing Bouse fines Met Commission on h~.il insurance

179,U60.89360.292.95707.598.96

8,808.9759^.78

^.723.23

37.337=22

“*5.793.^ 22,268.X7

187.x? 12*t,0H 25.13 97.00

JJ% 5 L

Total tamings $ 1.373.'♦91.52 $ lo.539.S7 $ 1 .390.031.U9 $ 1 ,622,332 6U $ l,i*38.3Ul„28


CB0B8 BtamWB AMDavbbagb a m or robbings oh bahhxno assets

FEDERAL RESERVE BANK OP MINNEAPOLIS AMD HELEHA BRANCH

1927 1926

Discounted bills I 192,216.06 * 310,423*71Purchased bills 360,292o95 405,511.44United States Securities 707,598.94 723,347.45Federal Intermediate Credit Bank Debentures 8,808.97 16,667.66Munioipal Warrants 594.78 385.50Foreign Loans on Gold 5,980.29Defioient reserve penalties 13,404*64 16,473.12Miscellaneous 107,115.15 143.643.47

TOTAL $l,390,031o49 $1,622,332.64

Monthly Average of Gross Earnings $ 115,835.96 % 135,194.59Monthly Average of Current Expenses 87,395.51 88,646.43Monthly Proportion of Operating Profits 28,440.45 46,547.96Monthly Proportion of Dividends Paid 15,060.54 15,634.10Monthly Proportion of Original cost of Federal Reserve notes including shipping charges to us 2,843oll

Hate per cent of Current Net Earnings on paid oapital stock 11*35

2,799.78

17.8.6

AVERAGE RATS OF EAENIt’GS OK EARNING ASSETSBillsDiscounted

BillsPurchased

U.S.Securities

Federal Int. Credit Bank Debentures

Municipal T/ar rants

Foreign Loans on Gold

Total

1927 3.937 3.412 3.581 3.654 3.722 3.5801926 4.000 3.548 3.850 3*827 4.000 4.500 3.7931925 4.030 3.245 3.841 - 4.000 3.569 3.65119£4 4.458 3.720 Oe*>3<7 • 4.374 3.000 4.0841923 4.502 4.125 4« 250 - 4.500 • 4.4111922 5.119 - 3.427 4,752 4.8401921 G.479 6.057 2.065 • 5.807 - 6.0911920 6.223 5.259 2.01c* - « «» 5.7551919 4.381 4.267 2.460 - mm 4.114

ri600U.)t rate effective January 1, 1922 Disccuv.t rate loverod Jar.uarj' 11,192?. to 5J6 tiscount rato lowered A' /ast 15, 1922 *o 4 $ Eiscou't rate lowerod October 14,1924 to 4# Discount rat© lowerer Ser er.ber 13,lr27 to Sj#


Earned at Minneapolis #1,373,491 52. earned at Helena §16*539097.

The above total represents our income from various sources as outlined in the Federal Reserve Board*s roport form3c Other amounts have bean colleoted during the year but these credits are made direot to Profit and Loss account.

Total earnings for 1927 were $232,000 below the total of 1926.During the last quarter of 1927 profits vrere well maintained and this was necessary as up to the close of September we barely covered our current expenses and dividends and had made no provision for depreciation allowances.It has always been possible for us to receive additional earning assets

from outside of our District and we were again allotted liberal amounts of bankers* bills during October, November and December. Increased amounts of United States securities were also obtained through the Investment Committee in New York so that our earnings for the year were sufficient to a over all needs and pay a franchise tax of $103,815.90.

Inoome from Distriot

1927 1926 1925 1924DUoounts for members # 192,216*06 $ 310 ,4230 71 $ 231,341.87 $ 578,446056Warrants 594,78 385.50 180.74 31,19Penalties for deficient reserves 13*404,64 16,473Q12 17,414o50 40,175.08Interest on past due paper 37,337.22 116,434°12 36,652.70 19,529.77Interest on delayed transfers 69o64 73c98 182o88 773.25Mlsoollatieous 1,646.67 673.66 772.05 1,315.26

* ? wr,w.<n: — f T~m,wirsi

Income from Without DistriotDiscount from Purchased Bills £ 360,292.95 $ 405,511.44 $ 440,783.93 84,263o91Interest on U. S. Securities 707,698.94 723,347.45 676,696.32 848,070.29 Interest on federal Intermediate

Credit Bank Debentures 8,808.97 16,567.66Poxeipi loans on Gold 8,980.29 11,111.70 532.50lot Profit on U.S.Securities sold 45,793*46 24,688.49 19,599.18 33,809.05 participation in transactions with

f e*»i£l! Banks 22,268.17 1,928.22 3,605.41 2,118.50fI*T7Tjm65’ $1 ,1 5 1,706.54— ire¥,W.lB

In no year sinoe 1922 have we received strictly from our own Distriot, an income sufficient to cover our needs* The proportion that came to uS from our own member banks in 1927 was but 17.6 per oeht of the total


-2-

incomeo One year ago the poroentagy of income fron this District was 27.4,The total of income fi’om resources originating outside of our District was $33*000 less than in 1926, while income from member banks was approximately $200,000 less in 1927 than in 19260

United States securities for a number of yoars have be?n our chief source of revenue and this income continues to exceod that derived from purchased bills and dioounts for members combinedo From our permanent holdings of United States securities in 1927, we obtained §308,738^10 or $43,300 less than in 192G„ The exchange of O3fl059,000 of Second Liberty Loan 4j$ bonds for a like amount of 3^ per cent Treasury Notes on Llarch 15 reduced our income about $15,000. Our holdings through the Investment Committee in New York gave us an inoome of $398,860o64 or $27,600 more than the inocne from this souroa in 1926 0 Our total holdings were actually greater in 1927 than in 1926, but our earning rate on United States securities averaged 3*561 per oent for the year in comparison with an average rate of 3o850 per

oent in 1926* Average daily holdings of United 3tates securities w?re $19,759,000 in 1927 and $18,788e00Q in 19260

The discount obtained from purchased bills was less than in 1925 or 1926* From this source we received $360,292.95 in comparison with $405 «511o44 in the previous year and $440,783993 in 1925o The average amount of bills held in 1927 was $10,560,000 or $868,000 less than the average in 1926o Hates for acceptances were around 3 per oent for a good part of the year and the average rate for the year was 30412 per cento The 1926 rate was 3*648 per oent.

Our member banks had little need for our discount facilities throughout 1927. Average disoounts over the year period were $4^822*000 and the highest monthly average was $6,960^000 in Ma yo The total discount obtained from members was $192,216o06 or less than 14 per oent of our total lneom»* In 1926 the daily average of disoounts was $7,761,000 and the dis

count received amounted to $8XGp423o71o

On September 13* 1927 the discount rate was reduced to 3jjr per *«nt after remaining at 4 per oent since October 14, 1924« The average

UDigitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

vaie obtained for vvo joar vas 3 957 per cer.t which aldo ia -hlw lowast •wera.fr© rats obtained since tho opening of tha bank« Ou.r income from every class of earning as ret has been at a lower rate than in 1926 o The rate obtained from all classes of earning assets combined was 3o580 per cent in comparison with a rate of 3o793 per cent in 1926* The rate for 1927 is also lower than for any other year of our existence * It was estimated at the first of the year that we should require an average of approximately $35*000,000 in earning assets for 1927, to oover our needs <> The average carried for the year was $36*457,OOOo In 1926 the average daily holdings were §38,552,000o

Additions to our earnings from reserve deficiency penalties have

been decreasing each year since penalties were first inflioted. A total of $13,404o64 was received from this source in 1927 and $3,000 less than the amount collected In 1926o The closing of many banks and the improving condition of others will, no doubt, lessen future penalties®

Our collections of interest on the past due paper of closed banks were much less than in 1926« For 1927 the total collected from twenty-six banks final settlement was $37,337o22o In 1926 the amount oolleotedwas #1160484ol2 from forty-eight banks o

At the present time we are holding $600,000 in debentures of the Federal Intermediate Credit Bank of Omaha taken on a 3o40 per oent basis.Barlier in the year we had 1500,000 in debentures of the Louisville bank on a 3*875 per oent basiso Total interest from debentures was $8,808c97 and approximately one-half the amount earned from like holdings in 1926.

We have a great many transactions passing through the books daily in oonneotion with purchases and sales of United States securities for our member banks* No commissions are charged by us for this service but when we make a purchase for a member bank we take the interest on the security until payment is aotually received by us0 On sales arranged on which we

give the member immediate oredit, we retain the interest until the purchaser

places suitable funds in our hands„ Interest obtained in this way during

1927 amounted to $10,829976o The profits on exchanges of Uhited States securities held by us through the Investment Committee aggregated $I3^258043


4-

during the year0 An additional amount credited to miscellaneous earnings was obtained on March 15 from the Treasury Department0 As an offset to the premium on $3*058*750 of 4%$ Second Liberty Loan bonds which we exchanged for Treasury notes, the Treasury paid us the interest on these Seconds

from March 15 to May 160 The amount received was §21*905o26.Our participation in transactions with Foreign banks brought

profits of $229268ol7 for the year0 All entries on our books are made upon advice from the Federal Re serve Bank of New York who make the arrangements •The source of income is largely through investments made by Foreign banks in acceptances and United States securities,, Purchases are made for these banks by the Investment Committee in New York and a small commission is chargedo When a repurchase agreement is given the Foreign bank & larger commission is chargedo Our pro rata share of commissions was $12f764«95«For a good part of the year the Federal Reserve Bank of New York maintained a balance on the books of the Bank of England* This balance carried inter* est at approximately 4 per cent and our portion of the interest earned was

09 9 603o24oVarious other small amounts were obtained during the year such as

service charges on collection items returned unpaid, the s.’ilo of monthly letters on conditions, clearing house fines, sales of waste paper and the net commissions on hail insurance placed through our representatives*

The average monthly earnings were $115,835o96 in 1927 or approximately $20,000 less per month than the earnings of 1926. After deducting from Gross Warnings our Current Expenses only, the balance remaining represents 11*33 per cent on paid-in Capital Stock. This comparos with

the percentage of 17*86 in 19260


COyPABATIYl STATKMOT CTJRHENf SXPW5SS 07 f H® FSDBRAL RESEHVH BANK 07 I'lHNBAPGLXS AND HELKTA BRANCH

MINNEAPOLIS...i m ..... .

HELENA BRANCH ___ 1222___

COMBINE).-■1927..

COMBINED___isgg..

CO’/BINED___13£5_

Salaries§Bank Officers Clerical StaffSpecial Officers pnd Watchman All Other

Governors1 conferences Federal Reserve Agents' conferences literal Advisory Council Dtrwvtwr meetings •fiwiiing expensesAWMftsments for Federal Reserve Board expenses

feesInrtftoaoe (other than on currency & security shpts.IiMraraitce on carrency snd security shipmentsT«ac#i on banking houseLl rt* heat and powerRepairs and alterations banking houseamiOffice and other suppliesPrinting nnd stationeryTelephoneTelegraphPostageIbcpressageCafeteria (Net expense) miscellaneous

Total exclusive of cost of currency Federal Reserve Currency?Original cost, including shipping charges Uost of redemption, including shipping charges

$ 116,191*50 322,57^.06

23,22l*o Ik75.560.75

59210 c 25

1,112.53 6,269036

26.595-76.>3.136.5825.693.76 25.7w .731 1 ,689.0983, 750=0018,237.06

9.309.91

18. 995.02 z}. 233.7?4 .699.8U

12.097.59 55.13^.05 7.867.71 7.223

22 .-m.

$ 13.169.08 35.275.00 5,Uoo„oo 3,50U.oo

1 .176.U31.U62.031,800=, 00 3,386.88 1 ,702.361,893.051 ,3 » .7 8

8O.9 9

906.362,088.73

6 0U.2U7 .S7U.076.7U2.225U7.20

2.870.68

3U. 117.33— ljiSLk.956,938.05

$ 129,360.58357.8^9.0628,62fc.lU79.o0t.75

UU3.59210.25

1,112.537.UU5.79

28.057.7923. 136.5827.^93.7629.lO l.6l13.391.^585.6U3.05l9 .5 6 l.8U9.390.90

19,901.3825.322.U55,3Ch.08

19.971.6661,876.258.U1U.91 7.223.%

_— aiafrsi-$ l ,013,lU6.>«l

$ 135,680„56 357,223.51

25.958.29 8Q.090.U3

568.38288.CR82U„3’

7.288.5^35.221.5822.595.7630.701.2928.2U5.901U,090.6682,713.1119.761.76

U.5U0.U7

19.725-21 25,568.06 5.816.19

23,277.28 W.5 72.63

8,1436.688.31U.51

26.U<k .Uo

♦ 91,808.103U.117.33

$ 1 .0U8.7U6.15

* 1 .027,798.59

33.597.38 2 . 6 1. a

125.551. 5U375.112. U3

35,568.02 93.3U3.68

6UU.57 300.02 990o65

8,256.07 U5,722.62 23,006.05 29.883.75 31,793.25 1U.U23.78 80,030.71 19,757.^

7 .931^ 5 7,889.05 22,890.91 22,035.00 5 ,7 $ .lU

21.97H.93 61,597.13 9 .553.U5 7.152.CW

■ia.Q9H$ 1 ,0 73.2 7 1.

28,25^.82___ 3J t2 L52.1,1(^,981.02

♦Other than those connected with Governors1 and Agents1 Co»farences and meetings of Directors and Advisory Council«


EXPErlSSS -.1,048 ,746 *15

At Minneapolis $956,956o05 At Helena ;91,80c.10 A comparison of the iteras making up our expense -classification

for 1927 with the similar items for 1922 does not reveal any outstanding

reductions nor any marked increase a «> Tho combined current expenses at Minneapolis arid Helena are }16,011o05 less than for 1926o Of this reduction $9,316.32 was obtained at Minneapolis and $50694o73 at Helenao

An analysis of all the expenditures during 1927 is offered and the reasons given for increases and decreases* The possible trend for 1928 is important and we are hopeful of reducing the 1928 total expense below that of the past year. Improved banking oonditions should lessen •one of our expense items* Our handling of custodies made additional expense in 1927 and will no doubt add further expense in 1926*

The different items of expense are outlined below in the same order In which they appear on the regular reports:

SALARIES *594,898*63The total pay-roll of the year, eliminating salaries for whioh

ms are reimbursed by the Treasury Department9 was |4,054*26 lest than the pay-roll for 1926* Some doubt was expressed at the beginning of 1927 of our ability to bring the 1927 total salaries below the payments of 1926 1b view of the fact that £27,300 in increases had been granted effective January 1, 1927* As of January 1, 1926 the Minneapolis staff was 296 persons and that of Helena 35 persons with a net reduction of 15 persons for the y*ar* The ordinary deletions of the year would not have brought the 1927 pay-roll below that of 1926 but for the resignation of Governor Young* Several other persons drawing more than the average rate of pay left during the year more than offsetting some additions to junior employees* Additions to the 1928 pay-roll already approved by the Federal Reserve Board are $20*790 to Minneapolis employees and $2,740 to Helena employees* These increases, plus any allowed the officers* present a further problem whioh oan only be solved by a material reduction in the staff*


TRAVELING EXPENSES ;28 ,057. 79This amount is largely made up of expenses of representatives

at closed banks and reflects the decrease in activities of these men* The reduction over 1926 expense was £7*200 and £17,700 less ;han the amount expended in 1925* Without doubt further reductions in this class of expense will help in holding down the general total for 1928* Recoveries of 1927

expenses at olosed banks were also made to the extent of $6,711o08o Approximately #1,000 more of traveling expense was incurred at Helena in 1927 than in the previous year due to more frequent attendance at group

meetingso

ASSESSMENT FOR FEDERALtt&SEttVE BOAto teXfrKHggS' S2S.136.58

This assessment is governed by the requirements of the Board and is assessed against the paid in capital stock and surplus of each banko

The ratio was somewhat higher in 1927 than in 1926* Y/e were recently advised of the assessment covering the 3oard*a requirement# for the first half of 1928* This rate of assessment is lower than usual and in addition, our Surplus was reduced $500,000 through the charge-off on our Building Account0

Our monthly payment to the Board will be irlpS76057 for the first half of 1928 in comparison with $2,047o66 paid monthly in the same period of 1926o

After allowing for a likely inorease in the assessment for the last six months of 1928 the proportion of the Board*a expenses which we will assume in 1926 should be approximately $6,000 less than in 1927o

IBQAL FEES $27,498,76

There was nc ohange in the retainers or office expense allowed Messrs* Ueland and Heland, Minneapolis, but $100 office expense which had been allowed Helena Counsel monthly was discontinued* Several special oases ealled for additional payments of fees during 1927 and prevented our making greater reductions in this class of expense ‘than $3,000* In December we

made payments of retainers and other fees to the amount of |3,238«64 which was the heaviest amount for any one month of the year0 One item for $788*80 severed the bill of legal representatives at Madison, South Dakota, from

Jiily 1, 1927 to dose of year* Another item was $700® to Counsel for expense


in connection with taking depositions in case of Bank against Yellowstone Valley Bank and Trust Company, Sidney, Montana.

Even allowing for some unusual fees* in 1928 the total for the year should be less than in 1927*

INSURANCE (Other~Qian on currencyand security shipments) #29,101*61

There m s no change in the character of insuranoe expense during the year to account for the increase of #865*71o On August 1 we placed a secondary blanket bond of $500,000 with Hartford Accident and Indemnity Company, making our total ooverage |le500,000o The additional premium is $2,500 yearly. Our total payment for fidelity insurance is $20,000 yearly© The privileges to our employees in the matter of group life insuranoe were doubled with a maximum of |10,000o Practically all the employees are now paying 50^ per £1,000 monthly for the additional insuranoe,with the bank assuming the small balance of approximately $55* monthly. 7re carry $1 ,200,000 of fire insurance on our building at a oost of $75*81 per month* Tornado, Boiler and ¥ater damage Insuranoe is also oarried*

INSURANCE OH CURRENCYANl) SEfeURII^MlM^NYS |13,391o45

There was not much change in the amount of insurance charges absorbed in 1927 for member banks through Minneapolis from the amount absorbed in 1926* At Helena, through the falling off in volume of currency Shipments, the expense was $500* less than in 1926* Hone of this expense

was for insuring shipments of seourities as all of this oost is passed along to the banks served*

TAXES ON BAKKIKO HOUSEMinneapolis $83,750*00Helena 1,893*05

The most difficult item of our expense classification in whiehto bring about a reduction is that of taxes* We are paying much heaviertaxes than any other bank or offioe building in Minneapolis and we areentirely out of line with the payments assessed against other Federal


Reserve Banks. Every attempt to bring about a revision based on sale value as appraised by the Heal Estate Board or even on estimated replacement cost has set with refusal0

In addition to having our property over-valued, the tax rate

has been raised from 71ol6 mills in 1926 to 73*47 mills for 1927o It was necessary for us to set aside |90600o00 in December to adjust the total reserved for the year» We will reserve $7,000 monthly in 1928 and until suoh time as we are able to obtain a revaluation. Other plans for bringing about an adjustment are being oonsidered and we hope will

result in reduction of this heavy expense0

At Helena the tax rate has been gradually raised but the amount assessed is based on a fair valuationo

LIGHTo HEAT AHD POWER #19,601e84There is a reduction from 1926 of $200 in this aooount, the

increased oost of heating being offset by a lowered expense for light and power. Heavy deliveries of fuel oil were made in Deoember leaving a greater number of gallons to be carried over into the new year than usual. Payments for 38„450 gallons were made in Deoember. The extreme weather has increased consumption and it is hard to estimate a reduction in heating expense even though oil costs 0569 cents per gallon compared to the former price of 0595 cents per gallon. Light and power is furnished under contract giving us an industrial classification. The saving over 1926 costs was §606.

REPAIRS AHD ALTERATIONSBANXj^Q HOffSE $ 9,390.90

This is the largest amount expended in any one year since weoccupied our own building0 the increase of approximately $5P000 over the1926 expense resulting from the placing of windows on the Fifth Street sideof the building at a cost of |60180o78o Ho other alterations are contemplatedand the total expense for repairs and alterations in 1928 is estimated at|2p000o


m iC t AT) C?K<E S0P.UB8 m r n im m> atm ow atr

$ l?f/iDloo825,722,>46

the total expense of the## two items is $7S« lee* «<an tNs siini- lir oosts of 1926* In 1926 *e reduced the expenditures for >uil'3rs\ stip*

♦

pU«i hut fcsare not !*d wuoh suocee* in lowering the expense of nripting and stationery* recently made a thorough oheoU of ♦.«« stock of at*£:*li«« and beliere the information gainec1 will enable us to rentlaV.<* i>ie gyanti* tiae ordered with a hatter idaa as to our future needs* All farms and sup* plies heoonin£ obsolete :311st *e «ritte;3 off in the different department bud- -

* gfts and this in itself will causa careful ordering* ifam unusual expense was- ereated ttvo**gh tSa expansion and changee nmde in the Custodies function and we beliere the 1926 totals should ahem a reduction fro®* 1926 expense The inrontory the end of the yoar indicated &l»y!70, in su^li«*a on hand and #990* loaa ttan t>e value of sullies held at the cl«»e of 1926*

T*Ur*;.0gS # *,$04*06A reduction «as taado ia telephone expense both at Helena and Vtom+*

apolis for 1927* 8ome of the Brarcfc saving was node from ourtailront of -»trunk Una ecrrioe while both Head Office and Helena had laas expense far

outsideoclls* fhe strings effected nas 3512*11 and there secxs no reason♦♦

this gnin should not be retained in 1928*fSUSOttPS

^ MDHUPOLZS # 12,097059m m k 7#8740or

An expansion of telegraph expend in 1926 *as *»re than offset by arterial rednctiona in 1927* the catenae of 1927 was $3,305*62 lower than the Wtll coata for 1926, As previously stated, a larê part of cor tele* graph espenaoeercre aatters orer w-»ioh we hare no control* this refers* aespecially to the exttmsire daily t«es$agaa between our two officaa and the Federal Reeerre Beard* fhe fact that we aesmae the oos* of iaeeaaf:*a from ■s»bsr batiks revesting transfere and shipments of mousy makes' it diffi* cult to regulate or estimate wire expense* By * recent cârê in the classification of the Message containing the Helena daily balance figures, «e ax* peat to reduce the 1920 wire expose at Helena by 11,000*


POSTAGE n,S7G(ltt

BOTODAPOLIS .. $ 55,134c.03, ISLENA 0. $ 6*742022.

The reduction in postage erperse for 1927 was not larr,e but some saving has been made both at Minneapolis and Helena* The lessened expense at Helena represents a smaller volume of currency shipped and received* There was not mioh ofcan&e in, the amount assumed at Minneapolis for this purpose but fewer transit itens were handled. A closer control over post* age used was established during the year. Ho prediction as to the possible expansion or contraction in postage expense is made at this ti»e0

SXPRESSAftK $ 8#414091This expense item covers the cost of coin shipments and some

small bills to ancJ from <n«K.ber banks a?<d the oost of haulinj; supplies received from outside the o<£ty0 There is littlechange in this total as the large volume of our currency is bandied by registered mil*

CAFBTBRIA $ 7#223e40The saving of $1*100. in comparison with the total cost of

this servioe in 1926 was not throujjh tha curtailment of the servico0

Under a ruling of the Federal Reserve Board, no Federal Reserve Bank may Assume more than one-third of the total cost of food and service* Gross expenses of the cafeteria for the year ere $19*314.06 and receipts amounted to $12*090»57« The net expense absorbed is £*78&<>47 more than the Board authorised. In June we began charging 2 cents per serving Of beverages as a means of complying with the Hoard* s request and at this time the expense absorbed is less than one-third of the monthly cost0

FEDERAL RSSBRVS CURRENCY $ 34.1*?0S3Original cosi and tfilppinrf charges.

The above amount is divided into printing cost of notes ihtrlnrvthe year at Washington §51,502.60 and the postage and insurance ckargesof $2* 614*63 on the supply of notes sent us from Washington. Printingsohedules hare had little .variation during the past throe years andan estimate of the 1928 expense would he approximately $30*000 of printingexpense. Fewer notes were brought from 7/ashing ton in 1327 than in 19260


Printing costs have also been lowered from £36*60 to $35,50 per 1000 sheets*

FSPBRAL RBSETOTS CURRENCY $ 1,482*41Oost o f Redemption - Shipping charges

Ho part of the expense of the Redemption of our notes is included in the above amount, the charge representing shipping expense only* ▲t the close of 1926 we had accumulated the sum of $2,832*91 to cover the Redemption Agenoy expense* this expense is now much less than formerly, Xn September we paid the bill of the Treasury Department for the fisoal year ending June 30, 1927, amounting to $1,338*610 As we have sufficient reserve to oare for the next payment, no additional amounts aill be set aside this year*

MXSCSUAKSOUa BXPEKSBS $ 25,244*52In addition to the expense items which are classified throughout

the year, there are other items of bio re or less importance* The total of these expenses is $1,250. less than in 192$, It is difficult to determine in advance the likely amount of .unclassified expense in 1928, but there should be a reduction in the miscellaneous amounts expended to protect our interests at closod banks* The more important items and the costs are given below: Copies of bank examination reports cost $8,008*50 and rep* resents a payment of |463« less than in 1926* This is still t*-e largest of the miscellaneous items* Other charges were: Repairs and maintenance of equipment $1,156*70 ($658*04) at Helena, ojutside protection and time service $163*00; outside cleaning, laundry, water sppnly, etc* £841065; oar fare, taxi hire $1,306.20j postage neter rental $312*00; newspapers, books, binding, clipping service, etc* $1,968*40; collection fees absorbed $348*33; commercial agenoy credit service £444000; entertainment of bankerc and others $461098; officers and employees9 dinners £798*55; donations to employees for educational purposes $1,190*63; donations to Federal Reserve Club $2,301*75; Membership dues |1,164*60; contribution to Tax Payers Assooiation £610*93; donations to police and others £210*00; Miscellaneous expense at closed banks to protect our interest, other than salaries and traveling expenses $3,603*C«-30


REIMBURSABLE W^HDITUBBS ACCOPHT FISCAL AQUNCY OPT^ATIOHS

1927

Salaries Officers $ 4*000*16Salaries Employees 9,072.75Office and Other Supplies 54.47Printing and Stationery 3,691.54Telephone 1,627.80Telegraph 220.52Postage 1,279.00All Other 2.73

Total Expenditures % 19,948.97

FEDERAL RESERVE BAHKOF MIHHTiAPOLIS AHD HELENA BMHCHAmounts charged out of earnings for Furniture and Equipment (Including $46, odd, 06' f*or vauTb in Weir York Life Building)

since organisation1914-1915

191619171918191919201921192219231924192519261927

TotalSales and allowances of old Furniture and Equipnent

Vet Cost

* 05,565.0044,464.2669,976.4223.926.74 100,816.4068,569.1024,639.6025.528.75 48,987.9810.347.4820.869.48 10.783.93

% 426,812.06

11,487.67 9 416,874.89


BAKE PREMISES KKPOBT DECEMBER 81, 1927.n w m T M W N M tUMT 'IMF MlMPBUt. M M *

BPX1PIHQ SITE Original cost oflanJ, Includingbuildings, if any, . «, . * ....... «. $ 600,OOOo00

Incidental expenditures connectedwith purchase.......... . . . . • 2,468»66

Total ............................ ITlCgfiBOrLess proceeds from sale of salvagedmaterial o * . « o o o o » . . o . o « __ _ l,948o00

Cost of building s i t e ........ . • 0

BPILDIHOPreliminary expenditures . . ......... | 3,000.48Oost of construction:

Building exclusive of vaultsft fixed machinery ft equipment #1,730,065a37 Vault construction, including any additional struoture or foundation made necessary byvaulv ,and vault equipment . . 325,750.54 Fixed machinery ft Equipment $623,965.65*Less sale and charge-off of 2 mechanical coal stokers(Original oost #1*966 each) 3,912o00 620,053*86

Miscellaneous building construction expense incurred by Federal Reserve Bk:

Fees ft Expenses} Architects . , . . . 148,027o79Engineers 15,846000

Taxes . . . . . . . . . ............ 74,360o00Maintenance , o . . . . . . ____________ 21,708o66Cost of lew Building . . . . . . • . #2,65da7&9o59Coot of building ft building site . . . #&,537,320o()£ Charge-offst

Depredation allowances. . . 1,037,408068Taxes . . . . . . ....... 74,350000Maintenance 21,705<>66Total.............. , . . ------

Book value of property . . . « . . » 0 1 #k,40i,feta<1,ri

MEMORANDAReserves against depreciation:Building | 76,996o89fixed machinery and equipment. • « • . (a) 198,439o58total . . . . . . . . . . . . . . . . . j ' m l m m '

Floor space;fa) Occupied by Federal Reserve Bk. 124,739 Sq. Ft.fb|! Rented * o o » o . . « . . « » < j . fi Sq. Ft.foj tJhoooupied o .. « • * • • • < > <> ^ Sq. Ft.[d) Total floor area in building 124,739 Sq. Ft.(A) Net after charging off #782.40 which was previously

reserved as depreciation on ooal stokers*♦Includes $100,600* of architect * s fees and expenses.


BASK PREMISES REPORT DECEMBER 81. 1927.

Federal Reserve Branoh Bank at Helena, Montana.

Original oost of land and building . . . a . . * . . . . . $15,000.00 Cost of remodeling:

Building, exoluslve of vaultsand fixed aaahinery and equipment . . . . . . 57,642*95Vault oonstruotion, including any additional structure orfoundation made necessary by vault.......... „ 9,266*00Vault equipment, including doors,.lining, and all Interior equipment # , 66,580*55 Fixed naohinery and equipment................. *• 16,108*99

Fees:Arohlteots * . * . ..................................... # * . 5,433 o 57Contractor's Conniesion . . . . . . . . . . . . . . 7,442.12

Total oost ... ................................... $177,474.14Less proceeds from sale of salvaged

material . . . . . . . ................ . . . . . 75.00Cost of building and building site . .................. $177,399.14Depreoiation allowances oharged offs

Charged to current net earnings.......... . $ 21,290.15Book value of property............................. $156.108.99

MEMORANDA

Reserves against depreciation:Building o ............................ $73,218.74Fixed Machinery and Equipment . ........... 9,596.23

Total........................... $82,814097Floor Spaoe:

Oooupied by F.R. Bank................... 4700 Sq. Ft.Rented.......... .................... pT Sq* Ft.Unoooupied............ .............. sq0 Ft.Total floor area in building.......... . 4700 Sq. Ft.

27


BANK PREMISES EBPHSCIATIOKMinneapolis

Charge-off of land - 1919 - - —Charge-offs of building (including vault, but excluding fixed machinery and equipnent) to reduoe book value to estiaated replacement cost:

Taxes on building during period of construction192 2 ------ -----------# 6,200*001923 ------ - - - ---------- 14,760,001924 64,390,00 # 74,350c00

Goat of maintenance during period of construction1925 ...... ............... e 2,101o931924 - - ................... 19g603o73 21,705o66

Charge-off of construction costs1920 - - - ---------- -#100,000o00192 1 - 5,381o401922 - - ................... 6,446o 871983 ...................... 20,381*041924 - ~ - ------ - 219,316o891926 - - 30,463o 841926 ............ ........ - 57,438.64 437,406,60

December 31, 1927 Transferred from surplus to reduoe book value of building- - -

Reserve for depredation on building1925 - 36, 814 o 401926 - ............... ... 32,616.861927 - - - - --------. . . . . 6,665<»63

Reserve for depredation on fixed machinery end equipment1924 ...................... ...... 12* 814 o 731926 - - - - - - - - - - - - ....... - 52,396o£61926 - - - - - - - - - - - - - - - - - - ( e ) 71,222.961927 - -- - - - - - - - - ......... - 62,005o36

Total depreciation on bank premises - MinneapolisHelena Branch

Charge-off of building (inoluding vault, but excluding fixed machinery and equipnent) to reduoe book value to estimated replacement eost

1920 ....................... - ............Reserve for depredation on building

1920 ............................... -66,447o 491921 ............................. 1*893*2$1922 - ................................. 1,355.371923 •............... 1,571 o06

1924 - - ------------3,126o301925 - - - - 3,125o301926 - - - - ............................ 2,700.001927 - .................. - 2,T00o00T

Reserve for depreciation on fixed machinery and equipment1922 - - ------ 1,610«901923 - ................ - ............. *{b)l,541*t31924 - - - -- -- -- - - -- - - - - - - - - la 610 c 901925 I,6l0o90

IWS - ~ .............................. I*6l0o901927 -.......................... - - - l,610o90fatal depreciation on bapwaises * Helena(l) lit After deduoting #782.40 oa aooount of sals and ofearfe-off of two meohanioal ooal iM mp s.(|) let after deduoting #69*17 for replacements*

110 0,000,00

633,464o34

600,000o00

76,996o89

198,439o58♦1,408,900061

21,290©16

73,218*74

9,696o23♦104*108,12

28


BANK PKEI4ISES.

There have been fewer changes about our building during 1927 than in 1926, although the $9,309*91 of expense for repairs and alterations in 1927 was twice the amount expended for the same purposes in the previous year* Oho item alone aocounted for the inerease in 1927* This was the plaoing of four windows on the ftftft Street frontage to proride suffioient daylight for the private of* floes of the Agent and the (tavernor. The total oost of this alteration, estimated at $5,180*78, has been eharged against 1927 expense for payment on o«*» pletlon of the work»

Our budget for 1927 had not anticipated an expense of the above character and the changes within the building have been reduced twenty-five per oent in comparison v/ith 1926. The alley on the West side of our building was' paved with briok during the year* No important alterations are la prospeot. and this should be ref looted In the 1928 budget*

Problems of building operation have been largely solved and the efficiency has increased, while erpease has decreased* There is little oall for the services of outside workmen, our own building employees having the ability to perform practically every job. Included in expense of repairs and alterations is $2,166* the amount of our yearly elevator maintenance contract with the Otis Klevator Company* Salaries of building employees are not included in the expense of making repairs and alterations* Our nonthly payroll for building employees, whioh does not inolude guards or chauffeurs,was 32,393*50 in December 1927 for 26 employees* Increases to the amount of

/$100* per month have been granted effective January 1* Total payroll for*

building employees in December 1926 was $3,055o10*Estirates for 1927 oost of power plant whioh includes fuel, li~,ht,

power, repairs and the salaries of en ine^rs, etc, were $30,860* Actual expenditures were £585* less than the estimate and there should be little change in 1928* The estimate* of fuel oil consumption is 130,000 gallons yearly. n*e paid for 149,600 gallons in 1927 r/hereas, the actual amount used ras 139,000 gallons* Fuel oil contract signed on October 1, 1927, with the 'V. V.m Barbor Company, gives a rate of #5*69 per 100 gallons for one year in comparison with a rate of §5*95 up to the 1st of Ooto>er 1927c


There was a reduotion in light and power costs for 1927 of0606.00 in comparison with 1926 costs, the total for 1927 being I9,498.19.

The oontraot signed one year ago with the General Eleotrio Company give* us hn industrial classification. This oontraot was for five y»ars«

The following improvements to the building and power-plant have been made during the calendar year 1927:

(1) 4 windows have been placed in the main of floes Overlooking 5th street. Steam radiators have been plseed under thess windows to provide additional heat required.

(2) Tile roof of building has been repaired and thoroughly oalked.(3) Alley on west side of building has been paved with brick.(4) Improvements have been made in sliding doors, giving easier

and more dependable operation.

(5) Ventilating system of lower vault levels has been improved, insuring plenty of fresh ?ir for working force.

(6) Control of excessive air supply to oages on bank floor has been provided.

(7) Steel chests from silver vault have been moved to the thir& vault level for use of the custody department. These have been replaced in the silver vault by steel ohests formerly used in vault of New York Life Building.

(8) A large jteam coil water heater has been installed in the boiler room, resulting in a considerable saving in fuel0

(9) Steam leader pipes over main boilers have been reduced in sise, saving fuel0

BAiTg PREMISES (Depreciation)

No change was made at the close of 1927 in the per oent ofdepreciation allowances which has been authorised by the Federal Reserve Board for several years past. We have, however, after several years' effort, been successful in obtaining a reduction in our building account of §500,000 through a charge of like amount to Surplus Account• Our current earrings were not disturbed except for the normal allowances made each year in establishing a depreciation reserve of 2 per oent on replacement value of building and 10 per cent of the cost of fixed machinery and equipment.

Each year some change has been brought about v/hich has required

an adjustment of our book values. The replacement value of he building eliminating fixed machinery and equipment, was fixed as fJlp783,281o50 at

the close of 1928 and 7/ith the •;500,000 reduction just allowed, is now


t:lf 283,281*50Q For three years we hare been setting up a 2 per cent re

serve under the Federal Reserve Board1 s plan of aooumulating the replace

ment oost over a period of fifty years 0 While our book value of building no doubt is lower than the replacement oost, we are not authorised to reserve yearly a greater amount than 2 per oent of the book value0 For this roascn the adjustment on the $500,000 reduction now allowed has to be oarried back over the three years we have been setting up reserves«On our present book value we are entitled to a reserve of #76,996.69 and at 1*e already have set up #71,331e26, our depreciation allowance for 1927 is $5,665„65« Until some further change is made in the book value of our buildingp the yearly depreciation allowance will be $25,6650630

Cost of our fixed machinery and equipment was $620,053.55 which includes $100,000 of architect’s fees* To close of 1927 we have deprecia

tion reserves of tl98,439*58G All of this equipment has been subject to tthe 10 per oent allowance for three years with four years depreciation

allowed on the heating equipment which was made use of for part of the construction period„ No replacements have been charged against the reserve account#

No change has been made in Helena values or depreciation allowances o The Helena property is oarried on the books at Head Office with land shown at $5,000*00, building $135,000000 and fixed machinery and

equipment $16,1080990 Reserves accumulated against the building are &73,218o74o To replace fixed machinery and equipment $9,596023 has been set aside over a period of six years«

The complete record of charges and allowances covering our property at Minneapolis and Helena -p/ill be found in the accompanying tables.


FDHHIITO? AND SgrCP&JJT

The total expended during 1927 for furniture and machinery at Minneapolis and Helena '.vas $10,783<,93. In only one year (1925) during the past ten, has there been a smaller outlay for this purpose. Our 1927 total would have been tho .lowest -air.ce 1916 but for the necessity of paying for a Dodge chassis in Decomber, upon whioh a St. Paul fim v/ill place a speoial armoured body and deliver to our Helena Branch early in 1928.This chassis oost $995• and the amoured body will call for an additional payment of $875o(X>«

Very few adding maohines or typewriters were purchased in 1926, the #20,869« 48 expended being for other classes of equipment, one item, of whioh was #12,000 for currency counting machines* In 1927 $4,107o76 was paid for adding naohines and typewriters, mostly the latter and heavier purchases of adding machines, whioh inolude bookkeeping machines, will be neoessary in 1928* CXir 1928 budget oalls for a tot ell expenditure of $27,872 for machinery and equipment. These purchases are largely for replaoeasnts of machines whioh have given several years more then normal services Our meohanio has prolonged the life of these machines to the point where it now seen* good judgment to make new purchases.

Chairs, tables and trucks cost $1,866*80 with a large portion of this oost made neoessary by the ohanged Custodies procedure* Tiling equipment oost #5,487. and with the expenditures now made, should be nuoh less for seme time to come with the destruction of obsolete reoords and letters more fully carried out. Maohinery and equipment purchased for use other than on bank operations oost $891*60. Practically all the repair work neoessary on our fUmiture is done by our own workmen in our oen completely equipped shop*

Purchases of equipment for use at Helena amounted to #l,114n6& and are included with Minneapolis figures as the reoords are maintained here and we are desirous of cutting down the items in the balance sheet whioh must be wired nightly to Kinneapdlis by Helena*

It will be noted that the inventory valuation at Minneapolis is shown as #115,415u 12 and approximately #1*800 less than at the olose of 1925.


-2-

The explanation of this is thscb the most of our 1926 expense for equipment occurred at the close of the year and no depreoiation was made, ve have taken this depreciation in 1927 which is 50 per cent of cost the first year. We think our inventory valuation of $128,614a29 conservative* Eliminating the cost of the vault in our former quarters which v,ras included with our furniture and equipment, the amount expended to date since organisation for

furniture and equipment is $375,374©390 All machines are carried at the trade-in value allowed by the nanufacturing company although we have been able to sell quite a number of machines at a price in excess of the allowance® The furniture is kept in good condition by our workmen so that we have not found it necessary to lower for some time the value placed on many articles„

furniture and equipment made during the year, but in order that this fact may be apparent, we show in our balance sheet $lo00 as the carrying oharge for all furniture and equipment owned 0 Fire insurance carried at Minneapolis on supplies and equipment is #25^000 and we also have a Lloyds’ policy

covering water and steam damage to our building and contents0 The premium on the Lloyds1 policy is $156o25 per year and on the fire policy vie pay #74o00 yearly*.

Amount expended for furniture and equipment (eliminating vault in former building) to end of 1926 ,:376->028ol3

Purchased during 1927 - Minneapolis 9,669o28Purchased during 1927 - Helena _ Igll4u65 $38S,812o06Less amounts received for furniture soldor traded in 11,437 67

Total expended

Each year we charge off the total amount of all purchases of

Inventory valuation at Minneapolis Inventory valuation at Helena

115,415,12 13,199.17

Fire insurance carried at Minneapolis Fire insurance carried at Eelena

£ 25.000o00 SgOOOoOO £ 30p000o00


fSRSOHHSL FUSOTION At tho olo89 of the year there were S07 persons listed on our

payroll employed at Minneapolis and 36 at Helena, a total of 342, showing a reduotion of four persons during the aar* However, th- re wa; a reduotion in Deoeaber of eleven persons* whose salaries rare paid up to and including December 51* 1927» This number of employees also includes the rapresen- tatives at olosed banks throughout our distrioto Deletions for the year include two of-ioers, Messrs. Young and Ebersole* The total reductions, iaoluding those in December* are five transit employees* eight collectors* two officers and one employee at Helena. There is one additional employee on Fisoal Agoncy work*

Of the total of sixteen persons employed in the Fisoal Agency Department* ten are being paid by the bank. During the redemption of theSeoond Liberty Loan the Fisoal Agenoy had as many as fifteen additional ea-

fployses* A few of these additional employees were taken in from the outside but had formerly worked here* Host of the employees wore borrowed from other departments of the bank.

Of our own employees* there are 208 men and 88 women* including six oharwomen* At Helena there are 29 men end 6 women* The monthly salary batio (Minneapolis only) as of Deoember 31* 1927 was $46,114o61 as oompared withtho basis of #45*861o67 the corresponding month of 1926*

' Delotions of tho year wore -smaller than in 1926 but covered mostly the higher paid parsons* Through the return to the offioe of other . olosed bank representatives whom we desire to retain* the salary expenee of tho Failed Bank function has been further deoroasod and that of other taotleao increased*

The efflolenoy of tho staff generally has improved during the past year* as indicated by comparison of volume and costs at many functions with irtallar figuroe of a year ago« A more substantial salary adjustment to employees should bring about an inoreasod efficiency in 1028* The oost of

• •

tho pirMiiiiol function for tho year was #17*838o71# or approximately $2*400 lets than in 1926* Apart from tho oost of hiring empleyeesand keoping rooords* all of this expenso is ftor direot servleo to our staff,

Comparative oosts of tho units comprising tho fsroomol Function on the follovlng sheet.Digitized for FRASER

http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES 1 STAFF DURING 192?

Minneapolis OfficersMinneapolis Bank GeneralMinneapolis Closed Bank Department

(Collectors and Clerks)Minneapolis Transit Department

January 1, 1526 12

170 (2 ex.Help)

16

32

Jan-.usrv I, 1927

280

U

166 (4 ex*Help)

29

83*45 294*45

Helena Branch 35 36

Fisoal Agenoy:Paid by Bank Reimbursable:

Officers Employees

War Finanoe Corporation ReimbursableTotal

10

15 16

m r %

COST OF PERSONNEL FUNCTION

15

.55

358"

AdministrationY x r m —Tear 1926

Number of Offioere

Officers'Salaries£3,264.723,240.00

OtherExpense Total

ExpenseTi,£66*72 3,241.25

.82*90 1*25

Hiring Employees & >s• Reoords

Number of Bsployees

Bnployees1 Salaries2,220.17

OtherExpense209*63

TotalExpense

r^S5V§l2,429*80

Tear 191 Tear 1926

17031*46

Education and Training Yearl92t Tear 1926

Contribution to F.B. Club

02,166.?5Contribution to Am* Inst* Banking

$271.00

OtherExpense

T708T66 714*92

TotalExpense

93,142.415,679.922,870.00 298.00

Welfare and Medicalr x rm r -Tear 1926

Number of Employees

Employees'Salaries

■5575507“"2,066.73

OtherExpense

TotalExpense

'$2,175*182,402*52

1*161*34

?187*51 333.79

Number of Employees' Cafeteria Bnployees Salaries

Tm t 1926

Total F*rsonn*l Functionw i w -----Y w 1926

$5,649.84

Coat of Food

JOJtTfKF

Other Expense !,044.47

TotalExpense

119,814.0612.090.67*o20,329.09 12^014.58

6.84

Number of Offioere

Receipts * Net Expenses

c c e c e* e e c

#12,543*46 $2,135*79.Receipts . .......Net Expenses . . . * E 8 314*5?.

Number of Bnployees~ * Y M ....

Expense20,268.00*90 8*64


y m m . jm.xs o? suariss paid m baskBY fUHCTIOBS

(Minneapolis Only)Daeaatw 31. 1927. D.cucdxr 31. 1986,

Function HOo Amount jsro JmcimtOeneral Overhead

Officer* Xo50 $ 20395o90 2*15 I 30968o86Sraployee* 2028 420o45 2021 386o05

Provision of SpaceBnplcyeee 23o00 20651q98 22028 20640o52

Provision of PersonnelOfficer* o50 168o70 o90 270oOOaqpleyeee 7o60 745027 8o30 782o85

General striaeOfficer* 1*00 333 040 loOO 330o06Sapleyee* 66o27 70403o33 59o35 604O8o72

XwraranceOfficer* oIO 33o34 *10 33034

Failed Bank* 1Offiocrt 1*00 641e70 2o00 10625 10

15.98 3005418 29o48 59124o74Loans, Rediscounts &Aoceptanoee

Officers laOO l0145o90 .35 394o60Boployeoe Soil 955o70 5ol5 782*57

SecuritiesOfficers *81 362 o40 o50 329o20Sqplspoes 11*93 2P353012 4o99 808,92

CumxMqr aad coi»Officer* o30 137 o82 o60 275.04$*3.$r*e« 17*49 20456o84 20*33 2*784*34

Cheok CollectionOfficer* .88 21$*71 o85 195*00

83.84 S0S51o53 67,69 80955o44loa-Cash Collection

Officer* *25 83,35 *25 75*00tel«ri08 17*92 1,991 oOS 19 25 l0783o48Officers IcOO 791o70 loOO 750*00&9&9ft*8 17a47 2„414*02 19 o34 20542*27

Fiscal AfSMgrOffiMm *89 333*48 loOO 333*40aspisreos 20*80 20747o89 14 o80 10854*42

AndltUfOffioers loOO 583*40 loOO 541*70fefUpoM 8*70 1,478 85 7*87 l0238o00Officert *55 297o94 o7S 385o02$M&f9*08 *70 Federal Roserve Hot* Xssnee

126071 *55 77*57Offioors *21 111*28 a 25 100*00asplcgrtes 685 177o30 lcl2 157094

Besik S&fls&MitiOMSOffiMm •H 470*00 ,85 310*48i h SUm m 3*25 720@38 3*89 704*42

tUttiUWl A AwOrtlMlOffljtTB •30 W M ,85 375 <42nqpl«gr*M fatal Off tarn

»JSLd5ff 3*97 577»2412,00 $ tt.U?>20 14*00 $ i00292o20

?otal lqplagrM* Uli MUfcorMkl.

289*44 3e.HT.tt 290o33 850589947salsffios(tfftmn .89 s u m *88 291*70SalarlM M i tr Bank

TBIJi 5,55 711ol5$ ’,833*78Qff&Mrs 11.11 13*12 $ 10.000*50

a « u p M 288*91 36,198.06 284*78 34,883.32


ADMINISTRATION COSTS (Minneapolis Anly)

The chief itsm in ths General Overhead Function contains the salaries of the Agent and the Governor* trader the general interpretation of the Federal Reserve Board’s manual, no part of any other officer9s salary that oan he char>jed to another expense unit shall he charged in this TJhit. It is fairly well understood what other expenses should he plaoed in this Unit and most of the Federal Beserve Banks try to hold down the Over* head totals* This hank compares favorably with the others in this respeot.

GENERAL OVERHEAD CONTROLLABL? - A2HINISTRATI0K

Average number of officers Salaries Offloers Average number of -employees Salaries Employees Directors Heetixigs Raveling Expenses Officers and other dinners Office supplies and stationery Telephone and telegraph Membership dues Stenographic All other

1927 1926o r O F

$43,700.02 $47,625.032.25 2.34

5,116.85 5,038.896,269.36 5,556.441,140.58 1,547.911,202.08 174,67580.55 895.88844.77 687.71750.00 700*00230.41 258.53

1,477.82 1,810.91?$i,81£.44 wscim'jsz

GSKShAL OVERHEAD »OM-CONTROLLABLB - lONlEAPOLISThe following summary of expenses for this function is self-,

explanatory. It shows the expenses over which the officers of the bank have no direct control, as they are the result of established policies. v;e have already been advised of. the proportion of Federal Beserve Board expenses we most assume to July I, 1926. From this information we feel Justified in estimating that our proportion for the full year will be approximately $6,000 lees than for 1926.

cost of c u m m c r1927 1926

Federal Beserve Currency;Original cost, ice. shipping charges £ 34.117.3S $ 33,597.98Cost of redemption, inc. shipping charges 1,482.41 2,361.23

Slipping charges on currency to and froamember and nonr-meaber banks 28,067.70 27,151.06

Shipping’ chargee on coin to and fro:: banks 7,276.78 6,880.58Cost of shipments Head Office to Branch ___ 383.07 295.49

ALL OrxKT?Governors% Federal reserve .Agents* tadFederal Advisory Conferences C 1,766.37 1,680*75

Federal Reserve Board expenses 23,135.56 22,595.76Shipping charges on securities 192.22 964.40


m x t m - CAFETERIA. (Minneapolis Only)

During the past year more of flee services were rendered by the Welfare Department than in 1926 hut less hone and hospital oalls were made* 8ervioes wore 2,617 in 1927 and 2,492 is 1926. Oalls made were 27 in number during 1927 and 63 in the previous year. There has been less serious illness on the staff in 1927 and a smaller amount of extended leave required« Sind# the middle of April one person has perfonsed the Welfare duties and supervised the Cafeteria where in previous years there have been two persons, tinder the direotion of the Welfare Secretary the annual preparation of dolls was made for distribution to the poor of the oity and from letters received this kindness on the part of bank employees is muoh appreciated. Sixty-three members of the staff were sent flowers, when sick, through the bank olub.

■Comparative expenses for 1927 and 1926 were as follows:1927 1926

Salaries *1,987.67 *2,066.78Msdioal Supplies 109*01 99*84Offioe Supplies 64*60 90*02All Other 14*00 146*96

*2,176*18 *2,402.62 The circulating library installed in 1926 issued 6,069 books during

1927 and seems to be appreoiated by the employees*Through reduction in the expense of supervision and a charge of

t oents per serving of beverages begun in June, the net amount of Cafeteria expense absorbed by the bank in 1927 was *7,228*49 or *1,100 less than thesaouat absorbed in 1926* Vs are authorised to absorb one-third of the cost/of food and service eaoh year. We exceeded this proportion in 1927 by *786*47* Xn 1928 we believe it will be necessary to absorb only the amount authorised*

Tbs distribution of cafeteria expense for 1926 and 1927 is giventolars

o c m m bAtxvb cafeteria, sxpeisi* 1927 1926Salaries - Manager * 682*72 *1,086.27Salaries - Cooks - Waitresses 4,899*97 4,616*67Service Supplies 1,766.24 1,886*72Olass, China, Furnishings 99.82 146*44Oas - Fuel 160*82 106.78COst of food 11,766.90 12,648.46Miscellaneous 19.09 46*86

*19,814.06 *20,829*09Receipts trm employees *12,090*67 *12,014*68


compabmivi m c T i a m n u n u nSHOWISO BtMBEB OF OmCEHS, BDHBEK OT MPL0TO8, AMD KFBH81S

1927 J 928_____ ____________Offnrrimrlfri --------------------

Somber of Officers Average Bomber Bsqployees122Z___ISIS__1225. tm im__M3L_General Overhead - Controllable 2 . 0 1 2.15 2015 2.25 2.34 8o29Provision of Space - m 23.39 22.69 27o90Provision of Personnel .82 .90 .90 7094 8064 8.85General Serrice 1 « 0 0 1 . 0 0 loOO 64.28 64c 02 73.42Insurance < ,10 . 1 0 . 1 0

Tailed Banks 1 . 6 6 2 o0 0 2 o0 0 22.35 29o06 36 <,74Loans, Rediscounts A Acceptances .48 35 5o47 5064 7.78Securities .83 o69 .90 9012 4.74 4.49Currency and Coin o20 , 6 8 1 . 0 0 19.32 2 1 . 6 8 2 1 . 6 6

Check Collections *65 0 6 6 .65 66.43 72.98 78041Non-Cash Collect ions .28 025 .25 18099 19099 20.99Accounting o84 loOO loOO 18 48 19,84 21o50fiscal Agency .94 lo04 1.20 36,10 12.24 13,90inditing loOO loOO 1.00 7.33 9*0* 9.59Bank Relatione 0 6 8 o75 o?5 d60 0 s 044federal Reserve Agent 023 028 26 <,73 .7 ? o71

BxsolnBtions *83 <,66 .65 3o72 3.89 3o8LStatistical and Analytical *60/ 0 8 6 <,85 5Q33 4.05 j & n

13.28 14c 21 15.00 292o42 302o17 336,24

Expenses BzpenCM Expenses1927

General Overhead ~ Controllable 61,312044 * 64,295.51 $ 55,247.60General Overhead - Non-Controllable 96,422o46 95,526.65 89,391o57Provision of Space 152,185080 145,486,99 159,290o24Provision of Personae! 17,838o71 20,268,00 19,020.31General Service 79,651.06 77,998.70 82,675.76Postage 33 812 29 34,436 96 32,896 33

34,792.49 33,7Slo57 270027,61Tailed Banlra 115,591o 68 137,385.24 163o674.01Loans, Rediscounts & Acceptances 200337.98 17,677o02 19,949.72Securities 270248o39 16c233o 91 14o286o28Currency and Coin 4X0394oS3 460335o34 45,336o00Check Collection« lU7074lo29 1170616o95 I25,X4wo25lon-Cash Collections 270958o64 270370o23 38 J77.59

48842?092 49,633o69 51,806.14TUMI ignejr 43,903.86 30,941.72 34,1X1o37£•(•1 7,828.91 9,543,35 6,537.73Auditing 24,140.25 24,603.76 224.480 VTBank Belations 6,232.12 7p242049 5,273.71federal Reserve Agent 30180o44 2,841 11 B.769„3X

XsoHBinations 250 609 o 62 24,014 o 97 29„?.2^3TStatistical and Analytical 17,833 11 16n685061 140879o16

983D443099 * 989,918.66 $ 1,031,008.63Total Current Bxpense 956,937 30 $ 966,254.37 I 1,002,663.03fetal Reimbursable Expenditures 19,948.97 170219o33 16,430.33Proteat feea (Paid to employees

In lieu of salaries 4,308,45 5,378 48 60iai,rrStock of Supplies (Vet Debit) 20249 27 10066.48 6,883 60

983P443099 $ 989,918 66 $ 1,031,008 53


Activities ox* -the Club have boon maintain'd alciJ£ : uch ,?* r.ilar iin 8 to vhose

of 1926, The spirit shown ‘y the employees oach successive year se'.n.n.s a*- i*.i?rov<;. e.nt over that of former years. At the present tirm the Club ha a a 100 pin* e**at rA rtbersidp*

There has been socto broadening educational feature a'u't additionalamseiiients have been provided in order that wer/ richer of the Cl ruif.hi he encour

aged to take part in somo '.'ranch of study or recreation. This is as true of the women of the bank as of the {ten. The reduoed number of requests for l ave of absence on account of ill health may he attributed in part at least to the recreation provided for

Club members*?/hile many eduoational features ars provided, the more important*fundamentals

era not furnished in the bank but through attending t'ie various course* provided by the American Institute of Banking and by night classes at the University of Minnesota* The fee# charged are refunded to each employee obtaining the necessary credits. -?e have pro

vided §300. for educational refunds in 1926cOur efforts to prorut * healthful rports has also been h. ipful in developing in

terest in other institutions c: the City, Our Diamond Ball tearu has won the Championship in its division for several years, having a. ain been named the champions for 1927* There are twice as raar.y .voko:,. -caking part i.*> Athletics as compared iv5tl* tho year previews*

As further evidence tt»at the cooperative spirit ooaliitjes, over one hundred and fifty dolls were a(r;ain supplied by the officers and dressed by the young ladies of 5l:e banK

These dolls, with candy and toys, were turned over to the Public ‘Welfare Committees for distribution arsons the poor children of the City at Christmas,

A series of six lectures was given by 2frs. Stemble, an.1 other social gatherings have been held in the lounge room the entertainment having bevii ;.corided largely by Club members. These westings together wit1* others held o\;tsidi? of t>e hank have brought about a greater feeling of harmony i»\ our organisation0

*****

The budget covering club activities is practically the saie as for last year and is classified as follows*

Athletics # 535*00Vi elf are 200o00Bouse Coss&iittee 2,13So00Educational Ref.mdg 300*00 Contingencies 150 c 00

4 3,320oCOLess dues fr66.0>;To be provided by bank# 2,755 o0Q

gKEI&AL CUB,


GENERAL SERVICE FUNCTION(Minneapolis Only)

The General Service Function includes tho activities of tha Bank, which, by their nature are for the benefit of other functions of the bank.

Total costs of the General Service Functions for 1927 were |79,651o06, with cne officer and an average of 64o28 employees for the year compared with $77,998o70 for 1926 covering one officer and an average of 64o02 employees.

Administration expense for this function decreased slightly for 1927 being $6,0l6o98 and $6,057o61 for 1926.

The expense of maintaining the stock room and in connection with the

purchasing of supplies decreased slightly from the 1926 expense of $2,898*19, being 12,877.35 for 1927.

Gross costs of the telephone unit were $9,625o15 for 1927 and $9, 559o42 for 1926o The amount of tolls distributed to other functions included in the above amounts are #2,667*76 for 1927 and $2,925054 for 1926, leaving the net telephone unit expense for 1927 $6,937*39 and #6,633*88 for 1926* Although the amount expended for tolls and rental of equipment for 1927 was #6 ,317*79 as compared with $6,574*54 for 1926, the net cost remaining in thi3

unit Inore&sed through increases in salaries of operators and a deorease in the amount of tolls redistributed to other functions,,

Our Telegraph unit expense is discussed in oonnection with the operation of our leased wire*

The expense of the Mail Unit (Ordinary) for 1927 was $8,284*47 and for 1926 was $6,745047, a major part of the increase being accounted for through the transfer of the mail truok driver from the Automobile expense unit to Mail. She number of letters received through this unit during 1927 was 642,993 and the nuatoer dispatched 1,002,602 as compared with 664,924 received and 998,206 mailed during 1926* Total letters handled for 1927 was 1,645,795 and for 1926 1,663,150*

Oost of operating the Registered Mail and Express unit was $3,274.67 for. 1927 and $2,842*45 for 1926* Humber of pieoes handled during 1927 was 16#000 more than for 1926 of inodoing mail and 4,000 pieoes more of outgoing mailo A large part of the increase is attributable to the redemption of the Seoond Liberty Loan during the year*

Duplicating Unit expenses decreased for 1927 from the 1926 total of $4»518«&3 to $4,076*19*. This unit operates the nultigraph, addressograph,

photostat and the ditto upon whioh this report is issued* ,Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

G f m u L service ramzoKs (cd.muR»(Minneapolis Only)

fhe Protection Chit expense for 1927 increased from a total of

{21,243.93 in 1926, to.323,860.71. This increase was caused through the use of additional guards.

Cost of operating the Office Boys and Pages XXait decreased slightly for 1927 as compared to 1926, the expense toeing *3,306.94 and ^,392.40, respectively.

Automobile Tfeiit expenses decreased for 1927 from the 1926 total of 13',819.05 to £2,326.89, a major portion of the decrease toeing attributed to the transfer of the mail truck to the Mail unit.

The cost of Equipment Repairs reflected an increase for 1927 through the broadening of the scope of operations of this unit. Expense

for 1927 wae §5,490.31 and *4.826.38 for 1926.Vault Ha!«ter4vjace expense increased slightly during 1927 over

the 1926 total. The costa vere $3,932.66 and £3,710.62, respectively.(Che expense of maintaining Files and Old Records decreased from

last year’s total of £9,105.08 to $7,450.5?* a reduction of $1,654.61. fhe major part of the decrease is attributable to the decreaee in the number

e

of employees, cade x'ossible through a ch:u.i-e in filing methods.

8teno.£r&jt;hic Unit expense for 1927 was .f 18,698.39 as compared with $17,508.50 for 1926. The increased cost for 192? over 1926 is due to

an average of 11.17 persons employed for 1927, in comparison with 10.85 for 1926, and increased salaries*. All the expenses of this unit are redistributed to the other functions served, on a basis of the percentage Of time used by the;a to the total productive time of the unit.


GENERAL SERVICEADMINISTRATION PURCHASING & STOCK ROOM

First Half 1927 Seoond Half 1927

Total 1927 Monthly averageFirst Half 1926 Seoond Half 1926

Total 1926Monthly average

of Offioere Number of& Employees Expense Employees

TELEPHONE Number of

1.40lo40

1.45lo40

♦3,014.86 3.002.13 $6,016.98 $ 501 o41$3,067.572.990.04$6,057.616 504.60

IcOOloOS

1.451,08

First Half 1927 Sdoond Half 1927

Total 1927 Monthly averageFirst Half 1926 Seoond Half 1926

Total 1926 Monthly average

TEU5»RAPH Number of"" Employees

1.341.34

1.351.32

Expense ' $7,7K.51

7.889.88 $16,061.89$1,254.82$8,828.49-8,47.6.aa

$17,298.79$1,441.67

MAILNumber of Employees

7.379.61

7©74 7 c 04

$1,421.68 ?.06 $4,666.771.466.77 2.18 4.958.38$2,877.86 $9,625.15 e$ 289.78 $ 802o09$1,611.71 2.06 $4,903.13

2.07$2,898.19 $9,569.42 ♦*$ 241.61 • $ 796.62

REOISTERSD MAIL * EXPRESSNumber of

E3cp.U8e ... Employees Expense$8,778.74 lo50 $1,578.854.606.78 1.98 1.695.82$8,284.47 $3,274.67$ 690.87 $ 272.89$3,498.91 lo50 $1,427.673.246.66 1.50$6,746.47 $2,842.45$ 562.12 $ 236.87

DUPLICATING Number' of ~


Total 1927Monthly averageFirst Half 1926 Seoond Half 1926

Total 1926Monthly ecverage

3C26 2 *89

5.382,97

$1,946.342.129.85{47076.19$ 339.68

PROTECTIONNunVer"'cf15.50 115«39

OFFICE BOYS A PAGES r HumVer of

$2,426.892.087.24

$4,513.93$ 376.16

13.5614.31

AUTOMOBILE NioriEer o? Number ofBaployees Expense Employees Expense>WW>hJ>WWW»II.I »* ■ t n. » <««>■■«* ■« ••••*.« .W+W ••• - - --1**T r— ■!'-

$11,979.78 5o76 $1,755.4411.870.93 5o06 1.551.50$23,850.71 $3,306.94$1,987.56 $ 275.58$11,221.22 5.61 $1,710.4610,022.71 5.59 1.681.94021,243.93 §3,392.40$1,770.33 $ 282.70

» BEPAIRS VAULT a/JNTENANCE Number ofFirst Half 1927 Second Half 1927

Total 1927lo42.80

$1,402.35924.54

$2,326.8920152C15

$2,781.802.709.01$5,490.81

2.602o99

$1,765.602-177.16$3,932.68

Monthly average $ 193.90 $ 457.62 $ 327.72First Half 1926 Seoond Half 1926

Total 19262.062.05

$2,180.361.638.69$3,819.06

2.002,00

$2,481.762.344.63$4,826.38

2.70.2.62

$1,786.251.924.37$3,710.62

Monthly average $ 818.26 $ 402.21 $ 309.22FILES AND OLD RECORDS 8Tt;socp.a:"'HXC

Number of Employees Expense ~nfi£877.96~' ~

3.572.61 $^,450.57

Number of ft&ployees Expense

First tialf 1927 Seoond Half 1927

Total 19276o065.S0 •

11.1911.15

C>9,409.02 • 9,289.97

$18,698.§9'Monthly average $ 620.88 $1,558.25First Half 1926 Seoond Half 1936

Total 1926 Monthly average

5,097.CS

$4,891.37 4.213.71 $9,105.08 $ 758.75

11.0810*62

$9,032.32 8.476.28

$17,508.e0 $1,459.05

* Toll oharges distributed to various expense units $2,697.7$ *♦ Toll charges distributed to various expense units $2,925*54


APDITIHO TOCTIOB(Minneapolis Only)

During the past year there have been more radioal changes in audit preoedure than usual and for various reasons* These changes have

jalready brought about a more effective oheok on operations and other plans in process of working out will safeguard to greater degree the interest of this bank and our member banks.

The very rapid expansion in our custodies function, which began early in the year, made necessary a complete revision of our handling methods and controls* Due to our plan of joint control of all cash and securities by the operating and auditing departments, the various members of the audit staff have had to spend considerable time in the vault making it difficult to arrange other work* With the ohanged procedure two auditors are definitely assigned to the vault, leaving other members of the department free to carry out other auditing work* The man cheeking current vault transactions wi 11 not be allowed to participate in any examination of the vault cash or securities*

Our check on securities outside of the vault is greatly improved* Duplicate records are maintained by the Auditing Department and the records of the Custodies Department are kept under daily oontrol* The plan is similar to the oontrol maintained over disoounts and the results are just as satisfactory* Sinoe establishing audit oontrols we have been able to handle more promptly the increasing number of verifications received from examiners and banks and th<? records are in such shape as to facilitate our own listing of securities for verification with members*

The necessity for rewriting all the security records and the change in filing of securities within the Vault prevented,, during the last

e

half of the year, a complete verification with member banks* However, a verification has recently been obtained of securities held as collateral to Government deposits, and also the securities held as collateral to advances made by us, making at the same time a physical count of these


seourities* A partial verification of securities it not satisfactory in the opinion of your Controller and it is the intention to make future oheoks with the member banks covering every item held for those banks as of the tone datoo Any other auditing of seourities will be in the nature of an internal-oheok*

In July a defalcation was turned up in the Colleotion Depart— nt whioh involved a number of employaesand also a half dosen former employees. The Colleotion Department has always been the most diffioult to oheok in any bank* After spending oonsiderable tins * studying out safeguarding measures, we made a number of changes in prooedure and now have a system of cheeking whioh should be entirely adequate*

Another apparent weakness in our operations is the handling, of registered mail and express within our office* Vo losses have ooourred but the eontrql over the disposition of seourities has been by no means satis* factory* TMder a new plan to be installed January 2, all delivery sheets will be made in triplicate and each department’s packages will be written up separately* With the exception of currency and coupons, all packages will be verified at the registered mail cage and all reoeipts taken will be for amounts rather than packages* Our system of internal clearances will be much improved through the changes noted anft the information given the Auditing Department will greatly assist in the daily checks*

Plans for a closer control over the ordering of supplies are now being ooneidered and we feel certain will result in oonsiderable saving* Other suggestions will shortly be made whioh should lessen work, inorease efficiency and lower the operating costs*

In bringing about ohanges whioh safeguard the bank and in some instanoes lower the expense of another department, the Auditing Department expense is frequently increased* The ohangee in Auditing prooedure? to* gether with the expansion in volume of Securities, has required the addition of another senior man to our auditing staff* For 1927 the total expense of the auditing function was |24#140«26 and #468*50 lees than the total

4

tar 1926* Our estimate for 1928

•2»


DISCOUNT FUNCTION (Including Helena Branch)

In discussing the above function for several years past* most of the comments have been confined to the amount and number of discounts made for member banks p whereas s the discounting of bankers acceptances allotted by the Investment Committee in Hew York or purchased from other Federal Reserve Banks t 1ms contributed more to our income than the regular discounts <•>These acceptances are not seat te Minneapolis D but are lodged with the Agents

of the respective banks for account ef the Minneapolis Agent c Schedules are sent to us and are recorded ^ust as completely as though the bills wore ia our possession There is considerable labor involved and the Auditing De>> partment maintains a control m maturities and earnings similar to that e»* tablished over the discounts of members-

From the statement submitted it will be observed we hare received steady allotments of bills from the Investment Committee in Hew York through® out the years 1926 and 1927 with specially heavy allotments during the last quarter of 1927* In nearly every month since March 1926 we have also made purchases from the Portfolios of the other Federal Reserve Banks* The total number ef bankers bills from all sources during 1927 was 7^655 with a dollar value of #§7®761e000o In 1926 60O86 bills were received amounting te f 83o656oOO0~ Average daily amount of acceptances held in 132? was $10^560*000 in comparison with an average of $11?4280OQO held in 1926a The reason for the lowered

»•*average in 1927 <m a greater amount of purohases was due to more short tern bille received in 1927 than ia 1926 c The amount earned on acceptances last year was alee less than in 1926 due in part# however0 to the lower average rat* prevailing in 1927 e

Advances made member banks were fewer in number than sirn&e the early years of the bank although the total amount discounted was greater then in 1924 and 1925 0 The number of notes rediscounted and collateral notes discounted at MianeapOlic and Helena was 10*040 andt the total value 1141,051*000# This was a reduction of 2 0500 in janfeer and $81*000,000 in amount fro* the 1926 figures 0 Of the total advances §180p40S0000 was in

the fem ef collateral notes and discounted for* less than 15 days ia a&sgr

46


oases• Rebates were also allowed on over half the Botes rediscounted Vhile the amount borrowed by Twin City banks on 15 day collateral notes was considerably less in 1927 than in 1920;, there was not a great deorease in the number of notes handled

The number of different banks served was 276* In 1920 wo served 270 banks which was the smallest number since 1918 0 All States showed a decrease in the amount borrowed during the year 1927 except North Dakota which borrowed $1*1OO0OOO more than in 19200 Minnesota showed the greatest decrease due to the smaller borrowings of Twin City Banks 0

STATEMENT OP BILLS PURCHASEDPaper Purchased in Open Market Paper Purchased in Open Market

:?oe of Pieces Amount Noo of Piooes AmountJanuary T U T ---- « g0W7447ol3 ...W ----- I 43’8 5 ^ T 041February 476 4o9020343oO5 303 4 356,S94o51March 417 40311p952o75 378 4 p405 p309 0 84April 266 50S80P418o45 442 6,550,367083May 400 40825p933o72 345 6n122o722(,01June 544 501180420o00 384 6D263p950e24July 280 20571P298O94 366 4P291r193088August 265 2p4210136o53 599 6P803P555ol2September 631 5*705^566*86 383 3,912,166.35October 850 U d364d960o47 392 4P844n649o60November 974 100420.454o86 487 4P705P593078December 1020 120572fi549o14 540 6fli70fi059©15

Total SSl4 I YfJBBSJBSi'M 1’

Paper Purchased from other P0 TCo Banks Paper Purchased from other F. R. Banks -------------- 2527----------------*------------ 1528----- ----------

NOo of Pieces Amount Hoc of Pieces AmountJanuary - T T ” I 75ti0050o00 ( 1 VFebruary 53 1 lOOpOOOoOO « -March 24 0OOoOOO»QO -April 226 5c719p105o6l 519 10 027p167c83May 12 600n000oOO - mmJune 25 600p00Cu00 r ) -July 19 700.000o00 180 2p255o921o40August i - 32 500p059o40September 99 I„8000196o40 118 20815097Qo51October 347 50401D285«01 100 2p000p560©12November 232 4p7000214o85 93 l;;8000216ollDecember 49 ln000o209o91 58 ln200P069o98

Total nil T ^ ^ V O l T o T ^ "HOT---- ‘ I 2T>;5§^TO?oTT


COMPARATIVE STATEMENT SHOWING VOLUME OF 7/ORK NUMBER OF EMPLOYEES, SALARIES AND EXPENSES OF LOANS, REDISCOUNTS

?,ND ACCEPTANCES FJHCTION.(Minneapolis)

No. of Notes No, of Notes Number Number ofreceived as reooived as of notes pieoes ofcollateral to collateral to rebated paperbills payable general line purphased

First Half 1927 4,270 388 507 665 1,931 2,869Second Half 1927 3,440 375 442 605 SiS*

Total 1927 7,710 763 949 1,260 4,586 7,636

Monthly average 643 64 79 105 382 636

First Half 1926 4,575 386 830 606 2,322 2,738Second Half 1926 6,419 565 822 1,195 3,186 3,348

Total 1926 9,994 951 1,652 1,801 5,508 6,086

Monthly average 833 79 137 160 459 507

Number of Number ofnotes oollateralredisoounted notes

discounted

Number ofOfficers

Officerssalaries

Number of employees

Employeessalaries

Otherexpense

Totalexpense

First Half 1927 „ o35 12,387.44 5ol5 $4,962.03 $1,582.69 $8,932.16Second Half 1927 •62 4,250o02 5o79 5,412.77 1,743.03 11,405*82

Total 1927 #6,637o46 110,374.80 $3,325.72 $20,337.98

Monthly average # 553*12 $ 864c57 $ 277.14 $1,694.83

First Half 1926 o35 #2,367.50 5.86 |5,051c48 $1,240.63 $8,659.61Second Half 1926 035 2,367«,50 5o42 4,788.52 1,861*39 9,017.41

Total 1926 14,735 00 $9,840.00 $3,102.02 $17,677.02

Monthly average | 394,53 $ 820c00 $ 258.50 $1,473.08


cnth

January February arch

April «y JxOM Ju ly August September October HoTember December Ho. different

7*xk*

Ho. Pieces Rediscounted

Total Amount Bedlscotmted

DISCCOHT 0PEBA71QRS

192719261925192U1923192219211920

1927192619^192&1923192219a1920

1927

dumber o f Banks Served

19 ^M 25 1927

ifamber o f Items Received 1926 1925

<?o 36 788 671 959*3 6s So 564 522 56097 s 6 79 881 709

131 112 122 1,152 1,251 1,11215U 123 1^5 1 . 2H0 l.UOfc 1.5021W 129 1J5 l fU ^ i.H o i 1 , 15*l*H 130 l*& 1.331 1,5 12122 130 12^ gU2 1,060

62 100 75 2S2 6H6 48268 107 110 513 1,211 94078 106 117 6fc6 90S 1,10276 . ld k m _ 66U I.6U 7 967.

275 ZJO 290 i o souo

7om *s 0?

12.51U

^ D I8C00STS

11,492

:?orthDakota

SouthDakota

2.930'3,006’4,3852,928

10,204

8 ®36,268

■lnnaaota

2.555 2.6573.755

1,474 3.6555.5<* 7.4505.9S2 3,5186,633

14.9%11,01424.395

, 8,546 12.939

v«nt«in

1.554 1.569 1.575 U.S38 9.5<a 14,400 19.718 13,052

Amount Hadiseoonted la V s

&6,6558,22219.74013.35S14.63?24,27410,4543.3988,110I*5*?16.25U

11.16315.25315.68816,40611.59*10,99416.77727.75527.05730.35926,31112.521

1SBZ2,485 !' 2,511 I.665 7.881 4,811 *{.387 §.238

16,1*8511,62813.61511.278

- 2*122$1U1.0J1 $221,888 ♦92.374

-n.coMln206 13*l4o *5267 136601 92977 210

1.750 U783.717 8152,108 382

Totalio,cfeo12,51**11.59227.41335.392*7.933104,234

73.275

a>

■iigfttl PfiiWtft____South Dakota Hontwua Himmtlii Jotid.$12U,1«?;,53S.052Q3.958.580.27

73.903.670.18 6U.093,222.03

232,202,3 7 7 .6 5 97.456,500.97

474.33s.340.56 735.151.853- 61

$ 6 ,013,983.38‘‘.913.712.1? 3,425.108.34 12,029,8U0.01 19.5»,9»tt.l9 20.768,013.06 67,058,283.53 50,33l.3S6.6*»

$ 4.720.293.29 6,101.060.36 8,3?3.649.W 13,450,287.56 14,272,082.70 27.8*5.394.41 91.838,597.01 87.875.6l6.4T

$ 1,902,915.72 2,108,395.561 ,792.1 1 1 .9 37.472*950,36

1 7 .997.3 17 .3 828.370.089.126 5.498.9 7 7 .1 553.592.37fc.96

$ 2,088,477.69 2,427,638. 2*214.195.912,079.395.333 . 580 , 6 3 0 .4 0

10,352^ 1 1 .3 820.39t.l*9-1019.5lS.3W.i9

$ 1,817,014.42 2,069,500.00 2,715.870.41 1,228,878.58 2,407,577.24 8,181.334.45

1 1 .530,9 6 .7 06,924,176.23

‘141,051,222 . 55 221,888,887.06 92.374.6<*.ai 100,354,573.8-290,0 5 1,926*!i93.oa4,«n.; 730,662.0*. 953.391.763.


SLOSgP BASKS

At the dose of December 1926 the unpaid liabilities of 97 olosed msa£ber batiks to us were #1,815,276*85« During 1927 the amber of banks closing was 21 and of these 9 did not owe us anything* The remaining 12 added #561,274*65 pliabilities, waking a total of #2*166*851«46*

Collections made fna all souroes la 1927 aggregated #1,214,486*27 learlng a net balanoe due froa elosed banks of #952,118*19* Of this aaount, however. It has bean determined that the liabilities of 7 banks aggregating #95,621061 will be impossible of collection and accordingly a charge of that anount was made against the Speoial Reserve Aooount In Deoeribero Hames of the banks frea which recovery nay not be made, and the unoolleoted liabilityof each, are given In the Deoeaiber report froa the Closed Bank Department e On December 510 1927 the nuriber of banks on our olosed list having liabilities to us was 72 p including the 7 banks mentioned o

As security to the liabilities of $656,495*58 notyst paid or eharged off, we hold $3p707©980o22 of papero In addltloa, wo hold #217,192*08 of paper olassed os "worthless* whioh was collateral to the advances of the 7 b a m charged offo

Vp to the close of 1927 we had received payaent froa 186 banks of original liabilities of $7,127,285*22, and in addition obtained #192,270*61 In Interest and >)160p548o54 of colleotion expense 0 Unpaid expense aooua&lated to the end of 1927 was $358,407*69* During the past year $36,629*18 of expense was recovered, the greater part of which was Incurred prior to 1927© Interest collections made were #52*745*37 froa olosed banks and #4,6959 6 6

froa other advances made to protect our Interests*A material reduction was made In the expense of the Olosed Bank

Function during 1927 and further heav * reduction will take place in 1928*The average nuibor of employees on this work was reduced from 36*74 In 1926 to 22*35 la 1927,

Soae of the reduction In olosed bank expense was through deletions while a number of representatives have been assisted to othor work in the bank* Traveling expenses should continue to decrease but it is difficult to estimate the possible reduction In legal fees*

COMPARATIVE FOXCTIORAL EXH3JSE1927 1926

Salaries - Officers Salaries - Employees Traveling ExpensePrinting, Stationery and Office Supplies Telephone and telegraph Legal Fees • Outride Counsel .All Other

17„531o28 47,117*77 21,711*14

670o14 487*16

130146ol59 928.06

§ 19*500*00 56,269o56 28,544»13

777©66 926„87

19 <,584*18 11,983<>64

# 116,591-68 £ 137.38e«24Average number of Officers 1*66 2 ,00Average susbor of £saploy®es 2 3 6 . 74

50


£ L Q.S 12. l A i l B IPS'; S I £ £ 2 . 1 £ I L L I I » 11 > 1927.K U .m i !■} & O'TER CY. RH.%AX‘

l i lK AWRXSS Si'JLAUTSS :U1.’T2KA';C3 LEflAL ft* * ‘’OV 3EPSKSE TOTAL RECOVERIES

first Rational Beak 601.92UIKKBSOTA

50b. 71 10,C& 21 37 1 ,11*0 .0* l , l* e OUfirst fictional Beak i r a r u iK)}+.U2 *33.93 3.00 22,50

62 62863 8*5

first Rational Bank Balaton 101.87 103.30 2,5o 270.19 270 19first Rational Bank Beaver Creek 267*58 168.99 83 * 7 520.0* 520 0*first lational Bank Bsnsoa 1 ,310*38 858.38 137.50 37M 8 2,681.2*first Rational Beak Brandon

15K 632^:50

1 1 c 602*4. 5C

farasrs & Merck. Kat9l Bank Oannon falls . *7.72 213,<5<5 213,95first BitioaaX Bank Clinton 68.75 *0.52 3^.80 . 1 ** 07 1'4’< .07first lational Bank Detroit Lakes H6.55 n o 69 n o 69' H m ers Rational Bfcak Bodge Center 6.791.32 2 ,*13 .15 2 ,065. 1 ,825,00 13 .09*.62first Rational Bank folds 91.00 2.25 101.69 10 16 9first Ratioaal Bsak Grey Bagla * W.Sg 15 1.5 1 3S.3S 118. 55 353.35 9! Afirst Bfetieaal Beak Glenwood 12.10 23.90 -35 36.35 36.35first fetional Baak Halloek 71.11 1*7«35 * 258.51first tt&ttoasX Baak Jasper 1*008.35 1*58,00 *j60.S2 1.827.17 1 .8 ?7 ,17*Hr first Xatioasl Baak Lariberton 30k,2h 175.*5 13c oc U9?,69 **92 69flret Sational Baak Laneastsr 1 S50. U6 57 73 132.61 1.61)0,80 1 „6*0 . 80first Ratioaal Itfk maassota

£ 355.112 12 34 120.77 120 77first Rational Baak Montevideo 517.76 72 75 1^5,16 1 ,580.26 1., 58O..26f*oplae first Rational Baak Olivia 5*3.71 296. *0 2C0.20 13.90 1 .05U.21

fUtiieas fetioaal Beak Ortonvills 329.02 257.3* ^3,00 635*36Bational fanaers Bank Osatoana 2*9.33 88. 6C. kjao 1*25.72Rational Ifcraers Baak Bed Lake falls 59.76 69.59 I3* ,l°9l*st Rational Baak Redwood Mils 59.80 75*1° 33765 337.65first Rational Batik Boyalton ia 3.1 i* 130.35 15,00 166.77 725.26 725.26rflrst Rational Baak Rush City 191.30 62.25 12 A S 266.0* 266,01*first Rational Steak St. Cloud 2,1*82.67 939.75 802.2S? 1,359 .12

362,205.583.R2Oitisens Stats Baak St* Peter 1*1*2.90 358,1*

126 1512 25 1,175,*9 1 ,175 1*9

Dtrosrs Stats Bsak spring Talley 205.98 157.31 7.72 166,0? 66321* 663 2$first fiational Batik Qim 219.07 189.02 39 70 “*97 79 *^7-79first Stats Bsak . Salnut Grove 739.00 356.99 7 ^ )1 1.173.30 1.173 30first Bation*l Batik %rrsa 1,136.73 867.3* 28*.3$ 560^49 2,81*8.92Harrsn 2&tional barren 593.76 50U.U7 111 25 850.65 2 ,060. 13 .first Rational Baak Veils 1 ,283.65 379-3* 715-33 293,43 2.677.1*C 2,677 *0M i s Rational Baak *ells 1*09.65 116,23 1^5 « 9 671.37 671.37Oitisens Rational Baak Worthington 657.96 1(0 00 X3J55 1..093.78 1.093.78

23.7il.96 11,365,21 *.673.22 7.00&.79 7 *3 . 1 9 *7.*98.37 17.905.81

in

A * Mtoived in settlement - Absorbed lgr tie.

Tint Sational Ink 1 9 3 6 6TS12T83 5.96 l»»3oOU 1*8 5 .5 1 *85.51Digitized for FRASER

http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A0DBB88

0 L 0 8 SD BASK EXPENSETRAVBLINQ *maintkxabcb TJfliT.

OVERHEADbc ro bs TOTAL

CVI

BBC0VKRXB8

First*National Bank Alexander 621*68 106*77 222*60 710.77Anaisooee National Bank Anamoose 166*82 881*66 80*69Fi-st National Bank Beach 688*98 1*128.17 26*00 864*18 279*81Firet National Bank 8Ub«* 69*64 76*41 12c76 216*78First Rational Bank Brinsnade 98*76 . 66*74 4*22Oaiido National Bank Cando 1,820*86 798*86 928*89First National Bank Cayalin 610*06Citizens National Bank Crosby 600*00 169,69 189*67 888*46 249c20First National Bank Crystal 1,912*69 1,079*09 100*00 664*62Dakota National Bank îokinson 76*87 119*61 67.26First National Bank Qolra 2,461*98 1,716*66 206*86. 8,484*00$iii*ens National Bank âhkinson 46*16 46*18 46.27CKisens National Bazik JSnsstonm 2,466*71 864*66 96*89 908.97Ffmners National Bank . ** Moure 99*46 v.:. 7*66

876*9411«86Osvtlitr County Bational Bank Langdon 2,887*86 1#614*69 961*61

First Bational Bank Lansford 226*92 106*89 114*70First Bational Bank Lidgerwood 1,200*00 964*80 140*48 660.99tferohants Bational Bank llandan 68*97 68.88 7*66 149.68First National Bank Marion 8,806*69 1,606*47 66.00 917*08First Bational Bank Medina 7,719*66 1*600*06 661*67 8*117*70First Bational Bank Mohall (1st suspension) 79*92 64*04 126*08First Bational Bank Mohall (2nd suspension) 1,892*64 1*071*98 209*70 687*66Oakes Bational Bank Oakss 669*28 686*62 142*09First Bational Bank Rolette 196*64 169*10 26*98First Bational Bank 8entinsl Butte 1,181*80 962*06 448*92 784*06First National Bank Stanley 96*18 98*47 1*00First Bational Bank Streeter 266*78 860*67 2*96First National Bank Tolley 676*12 786*21 614*88First Bational Bank *owsr îty 611*89 101*17 101.00 1*00?irst National Bank Tomaer 60*66 417*66 818*87 16*22 494.99First Bational Bank *urtl# lake 808.06 186*71. •78 22*40 122*04First National Bank Walhalla 826*00 266*98 6*00 6f*87Merchants National Aside First Bational Bank

Willcsr City Willow Oily

168*721,466148

66*61l#Q|t*66 178*80

11*86686*80

Merchants National Bank Iflihlfflim iM/uri 1*880*77First National Bank Woodworth 6»tfi*68 1*Q66<^7 .. 190*B0 1*226*88 , •

1,661*77 64So69

2,626*04 864*48 164*71

8,086.10 610*06

1,687.94 8,646.40

268*14 7,641*16

189.66 4,881*68

116*81 6*691*10

468.01 8,176*22

274*41 8,067*86

18 *19.47 869*99

8,812*14 i*m.64

892*67 8,861*82

190*66 620*40

2,186*71 714*66

1,604*91 684*96 666*60 261*66

8,898*77 12*216*08 6*884*01K < m :k

646*692,626*04

864*48164*71

8,088*10610*06

1,687*948,646*40

268*14

189*664*881*68

116*81

462*018,178*22

274*41

269*99

892*67

190*66620*40

2,126*71714*66

1*788*94684*96866*60261*66

w m m


1 L 0 S

BUS AimaiM

farnera & NnNh. Bat*l l^k Aloaator 100.83first latioaal Bank Alexaadria 478.08Big Stone City State Bank Big Stoao Cityfirat latioaal Ink Bridgaaater *•6.3?Bank of Brookiaga Brookiaga 2.937.9&first Rational Bank Brookiags 4,304.22first latioaal Bank Oarthaga »7o°l

642.38first ft’tioaal Bank Gaatleuoodfeifbock National Bank firat latioaal Bank

Chamberlain daar Lake ‘• J K Bfirst latioaal Beak Oolaaa ? * . «Batett Batioaal Bonk Beftaat 450.ll

flrat Ifetioaal Beak Blkton 401.04first Bfetioaal Batik Baraka^flrat Satloaal Baak Frankfort 866.34firat Batioaal teak Gregory 3.030.93Oratory latioaal Beak Gregory 1,408.07.farnera * Ifardbu State Baak Hoda 205.85Peoples Batioaal Beak lot Springs 88.04first latioaal Baak Ho «ard 41.59Beaard Batioaal Baak Howardfirat Batioaal Baak Bnoa 9 .107.20first l a t i o a a l B a a k Kennebec 223.56fhmars Batioaal Baak Lake Preston 310.66first Batioaal Bank laka Preaton 819.10firat Ifetloaal Baak McIntosh l60„S2first latioaal Baak Madison 4.583.96

&31.57first latioaal Baak Milbankfirst Batioaal Bank Mitchell 8.525.33Western latioaal Beak Mijtehell 1.340.18first latioaal Baak Morristown 1,378.24first latioaal Baak Oldham 170.63firat latioaal Bank Oaida 947.12first latioaal Baak Barker 115.38

53®.67Citisens Baak 6 Trust 0o« fepta&trSecurity 8avinga Baak b*»ia oitr

1,031.36first 2&tioaal Baak Salon

1 1 E K Z Z . L 1 1 L 1 1m a n u r e &MAIfttSSANCg MttlL

OTHP.HM S

(m s s& j msxpsasa •OgAL R3C07?.ms

MOWS MKPTA1 3 M 05*1.7210.00TO.Tk1.073.03

2,362.2426L.34SI5 . 5 1

1,285.76362.89 717.30725.73462.73265.19573.57

2 ,2 56 .3 3S49.433?.55124.58 61.24

5.420.67 288,54134.20SES.967.07 359.18 *35.83

1,128.73 1,228.46

91.19408.89113.15

834.03

211.30 784. a

31.25882.5868.00

132.15

li526.9U270.30499.37

25.00

144.395.S57.52319.7*» 25 00

2,695.38

648.58290.50

5.*723.191.27

3,652,041,837.462195.37227.94

1,028.01548.51

1 ,112.8622.3519.6517.45438.03

1,58?.s4394.0857.7614.7442.6996.26

2,090.4116.60

171.51 37.231*50.97

1,291.93148.62433.82331.13208.0610.0?

560.8710.4457.87

391.76

8.96

38.90

16.3?

21J0.80 240, SO.1,4o4.75 l,4o4 7512.07 12,07

126.09 126.0965874.31 6.874.319.2S8-53

953.572,568.41 2,5$8.Hl3.S17.301.653,11 lc653.ll2,858.361.198.19 1.19* 19

ss3.4£ 883 421.309.5S 1,809.5-22,148.747.435.772,o?l 5»30£'.l5 :-7 M ?2^.36145.52 1^5.52240.6g •

22,475.80528.70936.ll

1,290.91 1.290.91755.%

u 3538 y*lc l3 9 .3 ?3,39^98 3.394,. 982,800.04 2,800.043463. *238.16 288.16

2,207.38 2,207.38293.40 293.40

1,187.78 1,187.7872.32 72.32

1 .932.35 1.932 .35


BltSK JSBBS3L

2L21E.il 1 1 I K 1 1 I I 1 1 4

THATSXiira ftm u m s utiaemma i»m

O C T ®XZPS9SSwSSSSSSmmSSSmSSm

orgasmsmuss 3 a m — m s p v m t

K 5

Com Belt national Bank Scotland 1 ,396.32Sioox ?&lls National Bank Sioux Falla 73.3^Citisens national Bank Siaaetcn 315.38First National Bank Springfield 1 ,920.20Stock Growers State Bank Timber Late 1 .097.2s*First National Bank Fabian 995.53First fictional Bank Wfcubay 288*94First Bfetional Bank Webeter 72.00First national Bank Wetsington Springs 3.827.68Hational Bank of Weseington Springs 82.93First J&tional Bank Winner ^57.76Winner National Br.nk Winner 305.83First Hational Bank tfoonsoeket UttJff..

55.2S4.C1

i g .

2. .2US 2^1.59

1.282.IS 369.29 672.53 128.58

26.66 1.783.71

28.00 *10 5.71 181.15 68^-50

2.U73.36

3 . 6%'22 57*>.S0

722.05

2,101.79

3 6 .5 6578.122 7 5 . 1 6m .o i

3 . 1 63 . 5 1 5 . 3 139.86

17.75188.57HK.7U

572.^3

96.72

8.956.** 721.75

1,129.1)0 6,886. ItU 2 , 2 7 1 . 1 0 2,018.02

9.8HS.75150.79881.2225-55

JL2SL2L

721.751 .1 2 9 .5 ,5,886.Wl 0 1.363.08 t

198.^»

1».79 Wt.SI. 0 05.55

26.383.5Jt 21,5*56.83 23.333.5* 1.179.52 137.717.5^ *1,678.55

0 - Sot complet© recovery. Difference waived in final settlene.it rnd absorbed by us*


iw/m w»i iawt innti

Big APPffffSS tam ano*ja m jgM M

Stillwater Talley bt. Absarokee 68U.23first National Bank Baker 470.44Bellantine State Bade Ballantine 283.10State Saak of Balt Belt 373.2?

8W .63tamers Vational Bask Big Sandyfirst Vational Bade Big Sandy 299.51Aairtoan Satioaal BeJk Billings 2.763.79first Vational Bnk . Broadview 1,902.32I M m 1! State Bade Browning 3.820.0*first Vfttional Bade Garlyle 344.90

504.46'47s. 29

first national Baric Oerterfiist Vational Bade GharlofirstVational Bade Chester 5.972.25first State Bank Clyde BaxkStoofaasn's latioaal Beudc Oolisnibtte 576.97Qttiseas State Bade Odfterteon 74.92first national Bask Ont Bade “.997.78

836.93Beaton State Bank Dentonfirst Vational Bade Dodson 1 ,834.94Bdggtr State 'Bank Vdgar 145.19Vanaere * Mar. Stats Bade Vnreka 236.46first national Bade Fairviev 951.26American lational Bade foreytb 18.78Bade of Conmeroe Forsyth 211.95firet Vational Bade foreyth 255.92Stodonen’e national Bade fort Benton 3,314.20firet national Bede Treeiio , 193.65Oomaoreial Betlonal Bade Greet Ealle 6,091.04Hardin State Bede Bardin 1 ,369.2Ufirst Vational Bede Harlowton 797.55Havre Vational Bede Hisvre 3.129.30Banking Corporation of Mont* Helene

2,942.41firet national Bade BigvvoodBingiaa State Bade Hin^ban 5,490.51

339.15783-99350.05 336-26712.34162.35

1,762.95 1.U9S.131 ,473.11

331.6?95*9^

377.05 1.271.06

17.86¥*2.89

99.051 . 335.23

737.301 .953.24

S9.00265.38516.06 29.01*

210.41186.57

2,914.15I k j M

4,282.621.643-55

753.963,413.79

2,022.225.572.90

0SH38 cnmsau)xaou VJCFKSSB MPBHSI com SSOOfSBTSS

170.86lfc.51 376.04

1 ,194.82 1,194 .231 .795. 9s 1,795-98

658.1825*25 658.38

17.4026.96 347.12 1,083 .61 1,083 .61

327.00 1.861.37328.95 790.81 790. n

30,00 171. & 4,728.68

44.15^97.12 3.897-57

1,116.87 6.454.1724.60 701.M 701.1?

15.71 445.53 1,061.64 1 , oa.6413.25 91,08 959-67 959.67

3-70 l,l?6.i|4 8,413.473.60 21.46 2iJiS

157-5944.02

l,177->-5 1 .177.45.80 218.7S 218.79

670.40 1.116.38 8,015.791,10 291.68 1,867.01 1,867.013.50 sal*. 59 u,616.27

8.96 223.15 22J.15ioe.66 610.50 610.50

47.82235.53 96.05 1,800.00

47.82.00 10S.l;s 531.30 531.30

104.31 546.SO *>46.80280.60 643.55 7,152.50 7,127.28 311.00 128.31 480,26

1,391.^ 2.U28.71 14,194.21666.59 2,504.14 6.183.52

1 ,626.3940.00 34.88 1,626.39845.60 1,936.30 9,324.99 8,?40.12

1.00 1.00 1.00115.60 BIO. 53 5,890.76225.15 1.770.89 13.059.45


C L O S E D

B*3g AD0BS8S fiATAT>tiM

first latlonal Bade X&gNSP Ut 57.S266.05lactsrasss 8taU Badp Xisfsmsss

first Xstional Bank JopMa lgloOOfirst latlonal Bank Laafcsrt H3W.93Oitlssns latlonal Bank lanrsl >4,1*73.55first 1 st Bank of Vsipi Os Isvisto** 4,228.80Bortbvsstsna Batlonal Bade UYiB^itflS U5H.9Ifirst flfctlonal Bcnk lodgs Grassfirst Xstional Baak *%lta 1.188.1Uflssmssslsl Xatloxutl Bank miss 01 ty 2,255.67iasrloan Bank A Txvmt Os. Missoula 796.13first 1st tonal Bank Uoors 2,275.00•tats Bask of Bfeabna 1 ,-aw.uifirst national Baric Ophela 525.61first Satlonal Baric Osvsgsfirst Sstional Bask Plantjwood > *.70 9 .39Stats Basic of flsntfwooA Plantyvood 1 6 9 .9 *first Batlonal Bask Poison 1 . 9 0 5 .5 5first latlonal Basic Poplar > *,050.68Stockman1 s Batlonal Bask Poplar 3.733-u5first Batlonal Bank laus *61. £Oitlssns Stats Bade Bosndnp 3.069.??first Satlonal Bank B o n d v 2,676.33tflwvtap latlonal Bank 3Koviid»Qj^ 3,232.85first national Baric lop 87.50first ITatlonal Baric BnAjaid 1.170.79first latlonal Bank Savoy 28.1*3first Batlonal Bask Shslby 28. 51first Batlonal Baric Sldnsj 1,59*1.07Ysllo*atona Tal Bk A fr Oo. Sldnsjr 6.581.17first BaUo&Al Baak StsTonsrllls 596.25Mmr&mm Satlonal Baak Shrss f osks 2,095.98first Batlonal Bask Yhrss foxks 142. 72

62.02first Batlonal Baak ?o«assxi&

COiO

B a i g n t i i s i

t u n u n a <miimmnmgAiiof . lsgai

m n k s i.. .#2

3.397.86 **21.32 557.2778.33 281.87*3.65

385.84 3.^75.89

8.3230.00 71.60

1,136.32 1,97^.231.907.2H2,890.88 1,361.21

U13.67 22.85k f M 587.68

1,000.96 87^.981.H67.51 U10.I5l.**97.35 lUO.97

339.20 109.056a0.?8 1,1*00.32856.71 83.30 22.6-5798.7*1 m .O l

2.938.15 299.01* ?,9*»9.08. 90,39 5.00 123.1*5

2,1*66.66 20.50 680.322,108.01 25*»-35 27^.972,l'4H.O** 97.’jo 1,178.769&.10 Jis.no >‘8.90

2,135.90 i,r;9.oo A6.271 ,1*29.92

66.2012U.32

i . !(59-!»3 n u .3918.65

800.7U 111.5 0 858 .®56.52

J 3 .9 9 .76tn .29 , 579.21 787.80

3.632.81 ’4,529.01 972.20796.9* W*.l6

1,867.51 66. 25; 205.1319 .58 2.637*».15 21.00

ancFiKsa fl.fUth ■iiWV&k!

1*26.2363.7s “96.75 ’'96.75

115.69 1,038.06 1.038.0611,059.1*9 •

276.51*10,388.13 10,388.131,167.97 1.157.9723.M8 658.65 658.65

-.521.753,061*. 08 6,655.08 6,6 5.08

90U.39 3.339.3'* 3.339-3'*2.623-23 2,625.23

121.073.309. .11,669.& l,S&9.2i*1,1*73.21 1,i.73.21

1*55.2610,895.66

31*7.5=' * 7.925,070.83 5,070. S310,6^3.01 D 1,500.007,158.75 1,600.12 1,600.127,1E0.<IU 7,180.91*-.330.57>*,972.87

106.15 105.15U.30

2,914*7213U.89 13U.8953.26 53.26

3,702.36 3.702.36I5.7i5.i91.’*37*05 l.>»37.05

U.00

H.233.H7339.93161.17 161.17


t-U3

e * 0 8 « p m i i x n i t i

t u n u n t ocbib a m m omm_______________________ *»”— rm xxpxsst_____ aSM S_______rattt momMmg. * •

W I H U . . 6HlXov Ovnk ftalt Ink till O n * V i m artlooftl M fllaall first fetlanal Bade Wtslf*ed fiTit latlonal Bade *imiatt fiwt lationnl Beudc Wolf Point Saoortty State Bank Wolf Poiat

2.5».<5505*022W*92«7-§p359*6*.1&7T

2.190.607H8.62165.30

89.10333-5»»_____ 31.10

22.5011.0021*1.99

208.52518.28159.3026.ll

5 ,0 1 6 . 6 5

1,7?0.92su5 .n1

1 7 6 . 6 0

7 1 9 . 2 9. TO.07

SVu^i 175.SO 715* ~<970.07

907AL MORfUt.......... U.5,696, 80,855.90 15.7fe.0T 39.faL.26 5 .5 &. 1 S 257,1)77. ££ !’S.331.f'6

IIa

laoltid— 13000. Meant first rospaoslQA of wMoh $1500. Balano# neovifid taaqr 6, 192S.

vaa noovmd.

IlMBtlt 23.7U.96 11,365.21 u.673.22 T.O<*.79 7H3.1S U7.U98.37 17,905.81

ItlMMlft i». a iH2.a3 5.96 IH3.0H U85-51 U85.51

iarlli natoat* H6.665.9T 20,150. to 7.09J.H2 17.560.51 3.55H.U1 95.02U. 75 28,765.80

M M k H a 55.2» .® 36.3® .^ 21.556.83 2J.333.5H 1.179.52 137.717. Hi,678.55

Moataat lis.696.iB 80.855.40 T _ 15.lfiS.OT *39.-601.26 _«5.*i£l.l6 Sl7.U77.3r; 8fi.Ail.5S

2Ul.532.05 iue,898.oa U9.O86.5U 8 7 ,5 0 6 . 0 6 II.ISI.32 53S,-’Q5.S9 177.167.^3


ctmssucnr ahd cois fusc?icn

She rolune of currency handled has shown a steady irtoroar.a ae.oh year. Receipts from member and nou-nenhor banks in our district aiaou.:fced to i>198,106,000 during 1927 in conpari&an tith §189,656,000 during 1926, an increase of $8,450,000. Carrenoy shipments and deliveries during 1927 to banks in our district amounted to $192,056,000 in comparison with £187,074,000 during 1926 an increase of $4 *9 8 2 ,0 0 0 . The number of shipments reoeived at Head Office from member and non-member banks during 1927 m s 11*404 coxapared to llr36S reoeived during 1926 and the number of shipments sent was 14,069 in 1927 as compared to 15,596 during the previous year.

Ifcile a greater volume m s handled during the year 1927 than in any previous year the cost of handling has been materially reduoed. Sight currency •ousting machines were installed at Head Office during the' early part of the year and as m s anticipated, these machines have enabled our sorters to handle a much greater volume, resulting in lessening the number of employees*

At Head Office the nw&er of bills received and counted during 1927 nas 88*672,125 as ooopared to 56,271*717 during 1926, an increase of 5,500,400 bills*

♦111 the face of this increase la volume, the eost of handling currency m s reduoed from 142*569*75 in 1926 to $56*246*14 in 1927* a reduction ot #6,125o61» The re* duetion in costs m s brought about for the most part during the last half of the year* She average eost of receiving and counting m s 46 oents per thousand bills during the last half of the year, in comparison with an average eost of 61 oents par thousand during the first half*

fhe volume of eoin handled fell off slightly during the year* Che number of pieces handled m s 10*965,476* amounting to #S*165,685o60* la comparison with 11*015*116 pieces, amounting to #8,489*556o00, received during 1926* The nm&er of shipmsnis sent out* however* increased over the previous yefcr and is reflected by cm Increase in the shipping oharges* The cost of this unit was 14,523*37 la 19S7as compared to #5,968*89 for the previous year.

A Comparative statement for the years 1927 and 1926, shewing the amber of employees* ausfcer of unite handled, and expenses of the currency and oela fame*

tica, la given on a succeeding page.The eost of printing Federal Reserve Hates* redemption costs, cad chipping

charges is a result of established policies* This officers of this bank have no control over these items ami the expense* therefore, is charged to General Overhead Horn-controllable funetiom rather than to the carrenoy and coin function*


Following is a comparative statement for the year? 1927 and 1926,showing the cost, of these items a

COST OF CURRENCY, GENERAL QTCalEAJ) H PIT-CONTROLLABLE( inneapoils Only)

Original cost of >■'. K. Ifotes including shipping charges

Cost of redemption of F. R. Currency including shipping charges

Shipping charges on Currency to Member Banks and from Member & tfon-TIenfeer Bank#

Shipping charges on coin to Member banka and from Member and Non-member banks

Shipping charges on currency and coin between Head Offlee and Branch

1927 $ 34,117o33

1,482.41 28,067o70 7,276o78383o07

TTF$Tf38

(Helena Branch Only)Shipping charges .on enrrency to uleafcer Banks and from Member & Non-Member Banks

Shipping charges on eein to Member Banks and from Member and Non-: ember Banks

1927 £ 30981o64

1,300o41V'Y2%Z'M

1926 33,897*38 2,861.23 27,151*06 6.880*58296 o49

1926 4,917*22 887o39

T " T ^ c o r

CURRENCY SHIPMENTS TO AND FROIS MEMBER AMD NOil-fcELBER BATIKS(Minneapolis Only)

1927NUMBER OF SHIPMENTS

ReceivedFrom

ShippedTo

ReceivedFrom

ShippedSo

Total NOo of Shipments

Total No* Shipments

Member Banks Non-Menber Banks Received SentJ U m *y " 98? " " W " 14 2 siar- ■ .....79?February 682 982 11 2 - 693 984tf&roh 855 1,136 4 8 859 1,139April 904 974 - 1 904 975May 923 917 7 2 930 919June 1,045 1,021 10 1 1,056 1,022JUly 1,060 1,077 9 1 1,069 1,078August 1,082 1,299 6 7 l0O88 1,306September 923 1,757 2 6 925 1,763October 1,010 1,440 3 3 10013 1,443November 992 1,156 4 7 996 1,163December 921 1,466 5 5 926 1,470Total T r , m “TiydlfiT"’" w 46 1TC'4CT . aSsw

of

SILVER COIN RECEIVED FROM AND SHIPPED TO MEMBER A!H) NON-MEMBER BANKS DURING 1927.

Silver Coin Reeeived fromMember and Non-Member Banks __ _UianeapoJXi Helena Sraneh Combined

jfaMfly T w ifsr t w j m — T O rFebruary 217,748 16,137 233,886Marsh 215,639 73,221 288,760April 184,665 17,181 201,836May 179,233 9,488 188,716June 169,875 21,247 190,622JUly 216,864 26,890 242,764August 263,781 80,000 293,731September 176,689 44,212 220,801October 229,788 19,260 249,043Norejtiber 200,767 14,612 215,369Deoeciber 170,624 20fl644 191,068 Total §igB U ; m

Silver Coin Shipped t« Member and Non-Member Banks

Minneapolis Helena feraneh fiofclbXnedy""W$W 5 ■

97,845165,935168,920191,600806,835818,556364,325478,445331,980249,190

*— T 7sa— c w , « b18,2*5 114,09026,600 196,63627,828 186,44824,340 216,84071,866 876,70066,220 884,76675,708 410,080108,066 681,51094,147 426,07760,878 810,06688,706 273,162


COMPARATIVE S* AIBO T OF CURBEHCT ABD COH TOHCTIOK SHOOTIG BOMBER OF PIECES HABDIfiD, HUMBEK OF BHP&OIBBS* SAUHIBS

AKD BSB3ISB8 1927 ~ 1926 (i!innoapol£*)

Kuaibor of bill* reooivod and oouxrtod

First Vfclf 192? Seocud ’!c\lf 192?

Total 1927Monthly avoragoFirst Half 1926 feoo&d la If 1926

Total 1926’onihly tiTor go

AmountBtokbor of Offioore

OffioorsSalaries

#18o245o420 0 96o267o90OoOO *80 # 62f<»022O«32607O5 102 o 9&10450©00

j r a woSO 825*02

$1V*5JT®Wt 3,2U0S44 $ ie,301,616o00 $ 187o5017^063,261 91^554x>500oOO 0?? 1*916 ©6218ft208»458 .96fl341»400«00

5nfiOB®o98n8Bf,60 1.660o08

| 209$9*309 0 16n607o991<>00 297*22

umber of Eoployoes Other TotalBcgjloyoos Salaries Expense Expense

First ifclf 1927 Sooond mlf 1927

Total 1927

19 ©04 17*29

$ 16,451of9 140422o19

s " s f i m m

t2,301o8020245o64

Cl9,5T8o41 16667©73

•JWVSBTTK

Monthly average § 2,672.8* 6 878©94 § 3,020.51First ICalf 1926 Sooond Half 1926

Toto.l 192622ol420*21

17,729.61 17(,340.88

^ &ii) {>$Vo ,89'20163o222ft524o53

£20,854.4621.518.29

Hoathly average § 2,922©52 f 390©65 : 3,530o81

com*‘umbor of ooiaa reoeired saad oousted Amount

litmber of on

S&ployeossalaries

OtherM l

TotalExpanse

•irat rfclf 1927 6,528*758 : .;mOBd i&lf 1927 4*424,738

Total i m w M ¥ ? m

Monthly aroragoFitfst Half 1926 Sooond Talf 1926

Total 1926 Monthly rorago

912r7906r579pS88 4»4S3,5S8

vlj623rl&5o60 loiel„8*2r426.00 10.6

2esc798„85$.1|>8S£,7£4.00 1.201,656.,811.00 ias

nr ,759 $ E90r734oC8

01,082.81 1,04*.1*

178.47S #54.#9

892<49e i 7 » o i0 168.96

§ 883,9* 1,297.74

' % n b i181o81

$ 930.201,187.91$Tinr.n

i! 176.81

$11,976 .462.846.92

^ s s o r360.28

51,888.192.080.40

i t f m z s

& 330.47


January?abraaryAprilayJunaJulylu ostSeptenbarOctober^ovnibtrDecemberTotal 1 9 2 7

Total 1 9 2 6

Total 1925 Total 1 9 2 U Total 1923 Total 1 9 2 2

Total 1 9 2 1

Total 1 9 2 0

CgSRMCY RSOSIPTS S30K AST? SHIP: !%$?$ TO regBR ;HD IOT- :3 3?R B4FXS S? qr*HBCO 1IS38D

72C3IPTSFiDgRAL gaSBCTl Q.t ?XE«MP0LIS AS3 ISTUSSIk BBMSQg

SHTFMgSTS TOTAL T O i i m Tor al si-npriaarsJtobs

* ember Bftnka"’roai To

• ffljbfr foafciTo

gon-"amber Brnka 0221 JLSSi 122L .3L9S.6

1-1<0

$ 1 6 .1 0 7 . 1 5 1

12, 20,3 1 i5.O69.262 15. 73.326 15.710.791 16,700,061 17,1*21,538 17.2QJ.931> 16.072,797 l6.5tft.6951 7.U23 oss18.ra.gqo

265,218209,015225,884216,106190.025221,365221.7S725^.331275.798366,727392.500SU6.170

u . 6 5 3 . 1 0 5i3 .262.205 lU,5 5 0 . 1 7 0

1^.299.717 13.0Wi,815 i5.372.it3-15,1S2,'450•15.^1.32520.953.5002 0 ,6 1 3 .3 7 ?15.876.675 19.196.966

116.U7S 131.691 155.158 MO, 5 0 0

1U5.100 1S7,U»»0 220,V^O 332.800 557.5U0 393.611afcl.722176.789

$ 16.372.369 1 15,551,to 1 2 .6 2 9 . 3 5 6 1 2 .8 3 2 .lW15.295.1*6 15.355.32015.6^9,^92 16.678,9181 5 .9 0 0 ,n 6 1 5 .6 3 0 , 6 2 9

1 6 .9 2 1 . 9 2 6 15.19S,5''S17.6U3.32!>17,*>3,2S516.3H8.595 16.951.U221 7 ,8 1 5 . 5 5 21Q.080.060

lS.059.ai 1 6 ,117.1*5 16,393.93* I6 .i3 2 .7 s0

1 5 ,1 8 6 , - 9 6 5

17.6 0S . 6 1 6

11.769.58313,393.8961U.705.32*lU,UU0 , 2 1 7

13.1':.915 lf.35S.878 15,402,3^0 15,78s’'.125 21,511,0H0 21 ,006.988 16,118,397 19/S7S.75*

10,687,177 1 2 ,3 9 0 , 0 7 4

1 U,7 6 0 , 7 2 0

15.291.u7 1U.Ua1.261 15;220,225 i5 .5S7 .95S 15.359.156 17,422,39219.972.33517,310.27018.670.295

^19^,920,928 t 3.185.U26 fl8 9 ,2 5 5 .7 ^ 3 i 2 ,7 9 9 . 2 6 9 filSS.i0 6 .3 5 U 1 8 9 ,5 5 6 , ^ 5 '.i9 2 .O5 6 .a 2 *187.073.578

$186,U85,U8117 8,959,062150.W5.9551*7.591.375113.325.000132.789.000 6fc. 332.000

.170.9SU237,2712 U8 . 6 5 5

1 3 2 . 6 1 0

1 3 1 . 0 0 0

'2 4 9 , 0 0 0

5 2 3 . 0 0 0

•isfe.703.3!« 171,lUl.?73 i7i.l6 6 .7 3 U1 3 7 .S6 7 . m 1 0 5 ,1 1 7 . 0 0 0

8 3 .2 9 6 . 0 0 0

7 8 .6 1 6 . 0 0 0

3 7 0 . 2 3 0

2 ,1 7 2 , 1 7 0

1,383.265 2.753.003 2,0U7,OT)O 1.020.0?0

3><0,000

:l-:5,o5S,!vih17?.196.333 i5O.S9U.6lOlU7 .723.925113.U56,000133.'<5S.00064,860.000

*187,073,57*173.313.^3 1 7 2 .550.003 lU0 .6 2 0 .8U3

1 0 7 ,1 6 ^ , 0 0 0

9 9 ,3 1 6 . 0 0 0

78,996,000


CSJCO

:z m n u R s a r motoohto r thbral besots bofbs/ ; ^ 7AmoimtB of Federal Beserve Sotos received from and returned to each other federal Beserve Bank for redemption

Received from federal Rsserva Bank of Jan*,Boston¥ew YorkPhiladelphiaCleveland$&flhs&ndAtlantaGhicagpSt. loxduKansas OltyDallasSan Trsaoieca

22,*400

196,60 0 25,000 80,000 «,500

3$.S0O .206,900 123,600 208, too *5,*oc

*98.200

18,900 171.200 13,500 *5.5°0 16,000 31,000

9«.900 *>9 ,200' s r

ML

Js&

16.700163,20015.00057.000 10,500 *5.700

*».ooo57.JDO

177.60031.^0

■3S$.*W

J&mmi -JJ9K* J&59.

12,600162,80013.000 W.50025.50021.000

T O122,00022.500

S3SL3BS.

3*.7O0150,10018.00037.50012,00022,000

1 6 6 ,0 0 0

52.300200.700

16,800,2te,29g,

i » B15.500 >18,00013.500 65.000773.500 >10,100 183.>K» 18, >100

£3xi3Q5L

JtSz.

35.000159.30017.500 >12,00011.500 26.50 0

892.00036.300 111,60051.100

21'3.600

JS&i 8wrt. .Set J2X,

or eredlt.

■JESfcfij

33.000 159 .>100 18.500 *7,50010.900 18,800

883.000 19.N00

162.900 10.500

‘ftt-OOO

30,700 185,700

20,000 52.500 11,000 18,500

828.500 « is,900

jg

IS,1 0 0

1 3 9 .TOO20,9005 1 , 0 0 0

15.50016.500

■ S B180,90018,000227.T00

*3.100198.50016.000 5*.000 *.500

25.800856.000 51.20C

170.60032.700

as.Tpo

9.00012.00050*000

265,300v dm

303.0001.997.2002JO.50O

S S

io.t o Iooo090.300

2J99400329.6OO

Ibtal 3*c. 2,*56,too 1,939,200 1,820,>K)0 1,5*3,800 1,552,300 1,629,200 1,597.000 1,836,500 1,831,000 1.605,600 1,738,100 1,91*.T00 Zl.*6*,200

Shipped to federal Reserve Bank nf Jan. JiKL Mu. Jaaa. JB/ti JBssl J&U

Boston 22,900 12,600 17.000 1*,100 25,200 25.300 2*1,600 27,200Sew Tork 80.600 58,900 62,900 71,600 83,200 107,800 98,600 128.700SSPUdelphia 18,000 11,300 1*,600 13,700 19,200 22,000 22.900 28,800Claraland *3,000 50,500 67,000 55,500 *3,000 102,000 9*,000 150,700Blebmond 11,000 3,700 8,100 9,100 8,100 12.900 11,500 13,100Atlanta 2*,200 19,000 18,300 13,000 3*,200 *0,500 25.700 37,200Chios 777.100 55*.*00 625,100 630.600 60*,600 900,700 8*7.500 1,2*8.000St. Louie 27.200 15.*00 26.800 18.600 22,600 29.M0 28,300 38,000Kansas City 112,900 93.*00 115,600 107,200 98,200 156,600 131,800 210,200Dallae 15.100 7,800 9,900 9,* » fo.SOO 12,*00 1J,*00 15,300San rranel.ca^aUSSZ__ 138uiS2__ ISSJBO l6^.*00 llg.M O 2**-«0 208.000 2*».<P0Total-Shipped 1,329,300 966,000 l,123,ino 1,106,600 1,116,000 1,65*,300 1,905,900 2,189,700 1.709,800 1,703,*00 1,290.*00 1,63*.100

29.600135.20031.900

135.60011.300

.8 : 338.900

176.900 18,*00 2SI.700

27.900 9*,100 21,000 82,*0010.900 27.300996,700

• S Bi5.*oosrMSBL

-JteT.

20,100

S : S78.300 7.900

20,900728.900

26.300 U6.10010,800

JSjffiL


ttmsssn goupQK rosig(1'IFKEAPOLIS ONLY)

5his unit collects only government coupons and Federal Land Sank coupons and bonds. All other coupons are collected through the Collection Department.

During 1927 this unit collected 923,000 government coupons totaling

$9,335,000 as compared v'ith 932,000 coupons valued at *10,377,000 for 1926. The average number of coupons handled per day for 1927 was 1,771 and for 1926 was 1,886. (Die cost of h&ndliA?, per thousand durir.; 1927 was £2.92 compiled vith £2.53 for 1926. A portion of the increased cost of handlinr during 1927 is attributable to the switching of this unit from the cash und custody division to

the collection division, neoetsitatix:~ the familiarising of different clerks with the duties, ar.d lessening the output per day per operator tern? orarily*

Uhder a new plan of operatic*' to be placed in effect soon, the credits und advices for coupons clipped from government securities held in our vaults will, be written outside of this unit, v.hich should reduce the cost of handling per thousand during 1928.

COl^EtSIVS COUPONS EA3JDLED BY YEABSYear Btamber of Coupons AmountIW f ----52j;TOr; S 9,3557TO>.1926 932,000 10,377,000*1925 1,007,000 10,463,000.1924 1,228,000 10,478,000*1923 1,747,000 11,374,000*1922 2,435,000 11,296,000.1921 3,588,000 14,347,000.1920 5,089,000 16,419,000.1919 5,193,000 14,356,000.1918 1,670,000 4,321,000.1917 45,000 137,000.

CCUXFARkTlTB STAfl&5?HT SHCrriKC OP COtJTOFS KAKDLED,OT<3S3 OF 5KPL0SSES, SA1ABIFS A2*D O W E EXFBl’Srs.-------------------------------- m f .r T § H ---------------------------------------

(T£ix£ieapolis)!teber of KumberCoupons of Bn,: loyees Other fotal

_ Handled Employees Salaries Expanse ExpenseFirst half 1927 Second hd.lt 192?

(Total 1927459,532453,5779SFJUV

1.561.93

1,148.49 1,149*647* 3 * 0 5

158.21237.94

#1,306.70 1,387.58 1,65?.21*

: onthl;r average 76,926 t191.51 #33.01 |224.52First half 1926 Second half 1926

fotal 1926

465,322467,150m ; m

1.581*70

996.471,026.67

£167.26153.82

1,163.731,180.49

^ n r * i aMonthly average 77,706 168.59 *28.76 /195.35


CUSTODIES FUNCTION (Minneapolis Only)

The outstanding service now being given member banks and the one

most appreoiated at this time is furnished through our Custodies division*,Our vault facilities afford a real relief to the banks as is evident by the increased volume of seourities placed with us for safekeeping during the past year. This influx of seourities was hastened early in 1927 through the decision by the Twin City banks to make a charge for safeguarding the

seourities of customers.At the close of the year we were holding for our member banks for

various purposes $117,157,000 par value of securities. One year ago the amount so held was $75,558*000.

Better evidence of the increase in the volume of work handled is

a comparison of the pieces received and delivered in 1926 and 1927. In the past year 65,39T^pieoes were reoeived from outside sources and passed along to the vault custodian or delivered to other departments of the Bank. This will indicate the big increase over 1926 when 19,663 pieces were handled. Deliveries to banks and others aggregated 28f861 pieces. In addition to the outside receipts and deliveries, there were 11,291 pieces received from or delivered to other departments within the^bQalcf Vhese items were for collec

tion, sale or exchange on orders of the owning banks. Further heavy expansion in our custodies service is looked for in 1928.

In addition to the very heavy increase in volume, all records vere transcribed on the new multiple ticket and card plan during September and Ootober. This involved about 15,000 transactions and took a special force approximately six weeks to install. Expense of operating this function was

127,248.39 for the year and #11,014.48 more than the like expense of 1926.Of the increase #7,830 was in salaries and #2,350 increase in cost of printing and stationery and other supplies. The average number of persons employed on custodies was 9.95 in 1927 and 5.33 in 1926.

On October 31 the ner Custodies Proof Sheet vas established and through this means a complete clearance of each day*s transactions is ob

tained* Each morning the changes of the previous day on the Custodies ledger are verified by comparison with the duplicate records maintained in the Auditing Department.


ACCOUNTING FUNCTION

In discussing the Accounting Function it may be well to note that under the Federal Reserve Board Manual the units comprising this function are general hooks,member hank accounts, Federal Beserre Bank accounts, transfer of funds, expenditures and planning. Some other units are also covered depending on the internal arrangements of the different; Federal Reserve Banks. In every function of the hank there is important accounting procedure and vhere neoessary, this Is explained in connection with the writeup of that particular function.

Several changes have been made during the year in the general accounting methods which provide a more effective check within each function and also between functions. For instance, the amounts which constitute the control balance of the security collections and the coupons received for payments are furnished by departments other than those handling the securities and coupons. In the Collection Department the xaid and unpaid maturities of each day must a?*ree with the control kept in another division of the department. The registered .nail division will furnish control figures for other departments in addition to those already established by the Auditing Department. At the a&.e time a closer control will be made over the registered mail division itself,

Transactions in any of the profit accounts are handled In a different meaner by us than in most banks. «hile the tickets covering all

* transactions are made in operating departments, these tickets are routed to the general ledger through the audit sheet. This prevents -my department handling cash from controlling the disposition of earnings. All adjustments of accounting errors ^lso must be routed through the audit sheet, thus establishing in one pi^ce a record of all such errors.

Stoe volume of entries pas sir.., through the general ledger i» 1927 amounted to 125,202 or 25,000 more entries than were handled in 192$. This Increase was largely the result of the icasty Cashier's checks necessary in making redemptions of Government securities.

Meeber bank ledgers also carried more entries duriiH*, the year,

the total of 4?n ,235 in 1927 exceed!:< the 1926 number by approximately 5,000. The'reduced volume of entries .receive! fro*, some departments was mors than


viis*t increased credit* covering V-ond tranMotiom and coupon ool»l«oti<...r Sntries covering the tran motions *«ith other Federal £*•serve *ankft wore 153,992 and 7,801 lesa than in 1926,

During the year the question of eontisxiiinr the Functional Eeport sade by all Federal Hns«m Benka «as fcroutfit up* At an accounting oonfer- once atten%1ed by the Controller, it was deoided to continue theee reporta although *afty of the banks now hare a fairly veil established budget eye*

T .. Functional report will still serve eome purpose in jsakinr: unit cost comparisons with othor hanks*

0CKMmr>8 ST^TAMBlf

onaifx nuxxovSo. of Officers

T& T - V M(Minneapolis Only)

QM7RAL BOOKS • M b e r oi

U W & l ?AE& iCCOPCTi lUber of

ExpenseFirst MOf 1927 Second Hfclf 1927

Total 19271*561,32

#5,876*294*836*96

3*946*94

34,686*504*713*67

K » 5 . W5*275*19

#3,922*343*667*36

^T^RRF*5FMonthly average { 850.78 # 783*36 # 881.84First Bklf 1926 Second Half 1926

1.57i*eo

f 5,417.86 4*40# 3*93

•6,109*694*446*16

6 *116*66

#4,041.288.797.82

fatal 1926 4U,flM3t • 89,&4*84Mcnthly average 9 892.60 * 796*24 t 888.24

F.DEHAI* HSS&K7BTttJK ACCOUNTS ^t^^ZTUSBS

Busier o^ Bw®>cr of M b e r of Bvployees Expense Employees txpense Employees

Rjymxw898*9#

Firat Balf 1927 Beoond Half 1927

.Total 1927»*343*24

54,039.004,104.88

l i t n o r2.48 2.89

#2,888*21 . 3*006*34

Bone Bone

Monthly average $ 676*70 # 491*21First Balf 1926 Second Balf 1926

Total 1926S*8$3*5£

$4,429*444*020*97

2.732«6t>

#2,960*593.015*78

iRjnisf*09

Bone#92*37BoneiKC3F

Monthly average .# 704*20 * 498*03 # 7,70


iiama, aaam.

Ga December 33.0 1927, the total reserves held amounted to $77,064,000,,

wuich was 65o5 p@r cant of the combined deposit and aote Xlability This repre* seated a s&rksd change from tbe reserves bald at the close of 1926, One year ago the reserve carried was greater by $1600Q0,000 and the percentage against da* poalts and circulation was 76c

Tha reserve fluctuations wart somewhat greater la 1936 thaa during tha past year, The extremes of reserve for tha two ye&ra wara 83*3 per east on March 240 1926 aad 5809 per cant cm Vovenber 230 1927* Tor 1927 the hi^h point of reserve was eu par ceat oa April 1 aad for 1926 tha loweat reserve percentage was 60o3 on October 20. During tha dosing months of each /ear our earning assets required expansion and aa this was acre necessary in 193T

our reserves ware such lower than in the early months of the year.Tor a number of year* practically 100 par cant of our oxpanaloa or

contraction in earning aaaata has "been immediately reflect ad in tha amoral if our gold holdings. This la more evident than ever at this time due to tha meagre borrowings of our member banks* Out of total earning assets of $4407000000 on December 31, 1927, we have received $34,600,000 through the Investment Committee of Haw York. Of tha remainder $7,568,000 represents oar permanent investment account and $2o126s000 advances to member beaks. Less thaa $20o0000000 of our total earning assets on Deceaiber 31 were eligible as security’ for note issues e The fact that we have such a large proportioa of paper set available as note security is not important at this tins but does result In more frequent transactions between the Agent1! Gold Fuad aad that of the Basko

There has been a gradual reduction la gsdd held by the Ageat since the beginning of the yearc This amount should never go below 4Oft of the FedU* eral Reserve Hotes outstanding* On December 31t the Agent^a Settlement Fund was $33,000,000 or a decrease of $130000.000 during 19270 Hie Bank*a Toad of $16,831*000 was $3,600,000 leas thaa one year ago0

During the various months of the year the fluctuations la deposits have been greater than in the Issues of Federal Easerve Botes0 M the end of 1927 deposits were $57,O2OoOO0 la comparison with $63,5660000 held oa Dec«oiber 3io 1926o The highest point ear deposits reached was $6&(?7S90000o m


i;ovember 15 and the lowest total was #42,607,000 on the last day of Hay.After our circulation decreased #5,000,000 between January 1, 1927

and the end of February, there nat a further gradual deorease until the

amount outstanding reached 156,840,000 on August 31. Through the fall months a less than normal increase took place with the net amount outstanding #61,225,000 onDecember 31, 1927.

DAILY AVERAGES MEMBER BANK BALANCES BT MONTHS 1927•000 omitted.

1927

JanuaryFebruaryKarchAprilJuneJulyAugustSeptemberOctoberNovemberDeeember

150,377 M 49,114 60,139 48,824 47,645 48,377 49.019 48,229 50,870 53*850 56,198 55,064

JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember

1926,$63,516 X 52,285 52,272 51,171 50,294 50,588 49,790 47,980 48,654 49,915 51,195 50,500

Daily ! 1© ! e m for 1 9 2 7 * o o . . . 1 5 0 , 6 5 0 Xtt n tt tt ■

1 9 2 6 . o . . • o 5 0 , 6 7 0tt »t c ’•* 1 9 2 5 . o . . . . 5 3 , 0 7 6ti tt n i»

1 9 2 4 o o . . . o 4 9 , 6 0 0tt n ti ISit n ' tt tt

1 9 2 2 . . . . . . 4 4 , 4 5 1tt tt n tt

1 9 2 1 . . . . . . . 4 1 , 5 3 5

LIMBER BANK RESERVE BALANCES BY STATES

Miohigan Minnesota Montana Poo Dakota South Dakota Viseonsin

AT CLOSE OF BUSINESS DECEMBER 51. 1927.

1927$ 2,859 34,337 7,062 4,292 3,917 2,257

rsv f m

000 omitted.1926

# 2,815 31,660 6,307 4,173 3,535 2,267

r w f m

1926# 2,951 X 32,469 6,371 4,807 3,956 2.362

DEFICIENT BBSSEyg PENALTIESMinneapolis (192?) Helena (1927) Combined (1927) Combined (1926)

Total Penalties for 1927 4 9,723,25 t 3,681.41 £13,4C4„64 £16,473.12 No. of Banks Penalised 131 51 182 218Highest Penalty Bate 6$

Highest Point I'om- (llov.18) (NoVol5) ( k o v . 1 5 ) (Jan. 12- 1926)ber Bank Reserves ? 54,266,784062 «7,614,228* 94 <61,758,746,24 $56,686,133<, 5$

Lowest Point Heir- 'Hay 31) (Aprc25) (r*y 31) (June 3)ber Bank Reservos 537,334,347,20 $4,971,754*61 £42,606,590*29 .$45,505,455.89


gPA.TBM.sm o? xmsrmsn held motors. 31. 1927.

Maturity Z&t*rM« Ament

?ir»t UUrty Loan 4fc Xoada 1932-1947 4| g $ 786,200.Tourth ttb«rtjr Loan 4 & Bond* 1923-1938 4 3,431,300.freftsvpy Votes Series A 19301932 3$ 30O58075O.0<* So frtan»7 Sends 1944-1954 4 . 1650900«Oo So Coarereion Beals 1946 5 30200oUo So Conversion Bonds 194? 3 1110600oVo S t) Bftaasa Sonde 1961 '3 500oXSo S* Panama Bonds 1S36-1938 2 260,Participation la federal Beserre Sjrstaa Special iavestoe&t aeooo&t*

Uo So Securities--------------------------- 1603428000ofoul TJ. S. SamrittM - ------.----------------------- $ 23,899,710S’.dLwal latum&iat* Qr«dit Bash X«b«&tw«*Federal Xatsraedfats Cr«dit 3aok OE*ha0 Sttr- * 600,000.3 H T.va 3-16-1SS8

OCIO E0J3E&S 0? 1H3 BASE AHS -•3BRAL• ?3SJEVJE AOSKT A5 7&3SS OP KJSIKSSS PBCJSOER a.:MP.j».ocea>go are b m p b i * n. 1936.

B.ld ter Sack12SZ I2ai

Oold Coin §014 CertificatesSold Settlement ?&nA Cold Redemption *.*san&fotal C-old Said by 3aafc ------

I 3,5150S?5 o f; 3 # 223,345o1,536,500 3,650,500.139830,518„ 20,483,291.■JUBBiMLt -SJOMk830,^ 3 930'3o84 S2904290966o

geld by

G-eld Cola Sold Certificates Sold witfc : •» r-e Board Cold Bedecr.tioa 'Sxa&

Total 0*11 *ith to 7U Agent - -CcsS ae* >©11 folding* - - - —

m i

i: 3455,00010,712,000,,330OOOvOOO.

US*

$ 3,465,000.10.063.000,46.000.000...ItWJWU

■*49,?’i8,856. '50,338^850,

$73 074,289., *''83,988,856,,


TRANSFER & CODING UHCT { Minneapolis Only)

The total number of transfer8 xa&de during 1927 decreased in number from 55,734 for 1926 to 53,380 but increased in amount from $2,457,249,000* to $2,590,440,000. The wire and mail transfers for 1927 other than for the 5% Redemption Fund of National Banks, were 40,295 for $2,580,804,000. as compared to 39,513 transfers for #2,444,516,000. for 1926. The number of transfers for the df> fund of National Banks was 13,086 for 1927 totaling $9,636,000. as compared to 16,221 transfers amounting to $12,734,000. for 1926. The total expense of the Transfer and Coding Units for 1927 was $9,025 72 as compared

to $9,220o50 for 1926.Tfire transfers handled during 1927 were larger in both number and

amount than in 1926, this year1s totals being 27,739 wire transfers for a total of $2,109,225,000o as compared to 27,013 wire transfers aggregating $1,990,869,000o for 1926. Incoming wire transfers for the account of member banks were the largest in amount in the history of the bank although not in number. A comparison of the wire transfers handled since 1920 is given below:

OUTGOING m m TRANSFERS INCOMING WIRE TRANSFERSYear Number Amount

(00b omitted)Number Amount

(000 omitted)1927 11,115 . 670,649 16,624 1,436,6761926 10,174 609,695 16,839 1,381,1741926 10,517 696,093 14,926 1,376,8941924 11,943 700,576 14*561 1,344,6361923 10,062 546,133 14,667 1,079,8661922 9,850 550,036 13,166 1,002,8681921 9,249 398,876 10,395 861,4631920 8,587 550,429 7,543 813,869

The arerage number of employees in the Transfer Unit was 2.98 for 1927 as compared to 2o80 for 1926. The total expense of the Transfer Unit was $7,199.86 for 1927 as compared to $7,010.79 for 1926.

The number of messages coded and decoded other than transfers during 1927 were 17,896 as compared to 17,849, an increase of 47 messages for the year. The average number of employees in the Coding Unit during 1927 w«s 1.34 as compared to lo87 employees for 1926. The total cost of the Coding Unit for 1927 was $1 ,825c86 as compared to $2,209.71 for 1926.

Messages for our Helena Branch are forwarded over the commercial wires as we do not have a private wire to the Branch. The oost of operating a direct

line to Helena would not be justified by the volume of messages. Telegrams from other Federal Reserve Banks for the Branch cure forwarded to us and relayed to Helena except in the case of San firancisoo and its branches, which messages are relayed to Helena by the Spokane Branch of the Federal Reserve Bank of San Franciscoo Through ooding in this office of messages to be relayed to Helena,

the expense is materially reduced.Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMPARATIVE STATEMENT SHOEING NUMBER AND AMOUNT OF TRANSFERS MADE, NUMBER OF EMPLOYEES, SALARIESAND OTHER EXPENSES

Only) .Number of transfersmade other than for Humber of transfers8£ Redemption Fund for Redemption Fundof National Banks. . of National Banks*(Wire and Mail) Amount . Amount

First Balf 1927 Seoond Balf 1927

19,24321*062

#1,161,361,000*00 1,419,443,OOOo 00

6,6666,619

<4.841,150.004.794.780.00

Total 1927 46, 95 $£,6$0,d64,660,06 njjjw *9,638, stid.66Monthly average 3,368 $ 216,067,000.00 1,090 # 802,994.16First Balf 1926 Seoond Balf 1926

Total 192619,17620,338

T 9, 6i 3

$1,161,236,672.00 1.283,279.760*00

8,2028,019

■flClff$6,582,480.006.151.255.00

m z s

Monthly average 3,292 $ 203,709,610c 00 1,361 * 1,061,140.41

Number of Employees

BaployeesSalaries

OtherExpense

TotalExpense

First Balf 1927 Seoond Balf 1927

Total 19272*823ol5

$1,734.92l,965o96

*1,621. 7Q 1.877.28 ITS7SGSM

#5,356,625.848.24iTllW.88

Monthly average # 308,41 * 291.59 * 699.99First Balf 1926 Seoond Balf 1926

total 19262.89 3 <,00

$1,639,431,812044

P T ^ lT W11,746.261.813.67

w f m M

$3,384.683.626.11*77616'.TC

Monthly average $ 237.66 * 296.57 I 684.23

CODING UNITNumber of Boployees

EmployeesSalaries

OtherExpense

TotalExpense

First Balf 1927 Seoond Half 1927

lo541,16

fl,069c89 ~X 821*43

$ 4,43 i i.i'i

€1,074.02751,84

Monthly average 5 161o78 f ,37 t 162.16

First Balf 1926 Seoond Half 1926

Total 19261,721*62

$1,162.97 1,042,66 P,1SS ,€3

f:8.B47.24

*rCo¥

*1,169.81 1,049,90 $2,209M

Monthly average $ 182,97 ■I 1.17 ( 184,14


TELEggAPsr rmt (KZHI1EAP0LIS OKWt)

tho number of messages handled over tho leased wire during 1927 was 42o820* am Increase of 30242 messages over the 1926 total of 39 D 283 telegrams o This increase occurred la spite of a deorease of 22 messages sent, an increase of 8*264 messages being received o

The number of fiords sent over the leased \rire la 1927 was 4260228 at•V f.

oewpared to 418 ©477 for 1928 . an increase of 9r751 wordsoThe total , oost of the Telegraph unit for 1927 was §150051o89 as compared

to |170298o79 for 1926© Tho average nwtber of operators for 1927 m s 1©69 as oost* pared to 1«34 for 1926P and operators salaries $2^602096 for 1927 and §2<,331ol9 for1926 o Oar share of the leased wire rental for 1927 was §7 D639©87 as compared to $8^604o02 for 1926 o The oost of ossnorolal messages absorbed by us for 1927 was $4 <>678©24 as compared to 16*347046 for 1926a a deorease of $l,669o22<, Tho expense for printing and stationery Increased slightly for 1927D being #180*62 for 1927 and $116*12 for 1926*

The major part of the deorease in the cost of cosBierci&l messages absorbed by ns during 1927 as compared to 1926 is attributable to the change made July 1; 1926 $ la which we oeased absorbing the oost of telegrams la regard to transit liens sent or received over the ooamieroi&l rlres« The oost of telegrams advising non-payment of items 1500 and over is nov reoovered from our endorsers*

o m x m o m of leased ^----------ISSr a y yg----------------

Telegrams Seat Telegrams Reooivpd«aasieMMMaMMissi«ifSli

Motttii 1927 m e 1925 1927 1926 1925January 1362 1410 1382 1926 1697 1588February 1177 1182 1163 1719 1582 1372Kardi 1559 1474 1454 2423 1992 1690April 1206 1£95 1248 1970 1849 1573May 1406 1301 1338 2107 1758 1705JUBS 1402 1486 1532 2189 1881 1795July 1328 1322 1486 £084 1834 1759August 137f: 1439 1319 2214 1814 1667September 1516 1533 1485 2188 1880 1794October 1529 1574 172/ 2316 1968 1946November 1552 1S09 1431 ai89 1924 1648Deoemtber 1548 iesz 1638 £194 . 2026 2074

"TR58B‘ ~Tf5W TfSSS ~&I8F n m r


ffON-CASS COLLECTION FPHCTIOK (kbineapolls Only)

The volume of collections handled during 1927 deoreaaed to 210,611 from last year's total of 300,653. This decrease in volume occurred In spite of a large increase in the number of security collections handled, created through the increase in the securities held by us for safekeeping for account of menJber banks0 In 1927 the dollar value of collections handled *as #112,998,000 with |189,880,000 the value of oollections bandied in 1926o The handling ef securities and coupons for collection caused considerably more labor and expense so that although the total of items handled was 56a000 lets than in 1926 cur espouse of #25,264*38 was $238 „34 greater than in 1926.

For 1923 no segregation of security collections had been made from the normal city and country collections but during 1927 it was decided tc maintain separate eontrol aocounts for the three classes of collections* 111 securities and coupons turned over to the Collection Department are placed in the control figures by other departments so that a satisfactory oheok is now provided*

Security collections are mostly on points outside of Minneapolis but even allowing for these collections, classified separately for a greater part of the year, there ms a marked falling off in the number of city and country items handled in comparison with the previous year*

In February, 1927 we adopted a policy ef collecting all city items, other than grain drafts, through the local banks* This naturally subjected the collections to an exchange charge and the volume fell off immediately* FIT# months later we had to abandon this policy and all dty items are now handled as formerly» City items handled in reoent months are approximately the same in volume as one year ago* Due to the fact that a large proportion of the city items are on grain fiftns and are promptly paid, our cost per item is low* The cost per item for handling city collections in 1927 was 6*0 cents* The cest of handling similar items in 1926 was 7*8 cents. Our per item costs for handling city items have been consistently lower than the costs of any other Federal Reserve Bank* The reduction in volume of country items resulted in an increase in the per item costs from 10*6 cents in 1926 to 12*6 cents in 1927* Security collection items oost 13«26 cents per item* Sane of the increased expense must be attributed to the revising of the collection methods and with operations going

smoothly in 1928, a reduction in the per itea expense is looked foro


COLLECTION DEPARTMENTCOMPARATIVE STAT&iENT SHOEING NUMBER OP NON-CASH COLLECTIONS HANDLED, NUMBER OF EMPLOYEES, SALARIES AND OTHER EXPENSES. --------------------(iftraeapblls Snly)---------------Total No* No* of Officer* No* of Employees Other Total

Collections Offl- Salaries Employ- Salaries Expense Expense Bandied eers ees _____________________


103,600141,711

o25©25

$ 500o 500o

17047 | 9,573o95 17 e01 10,766.71

$1,876,642,045.85

$ll,952o7913,311,66

TOTAL 245,fell l#o600 20,559.66 &,&Z4.£§Monthly Are. 1927 gO,459 63o33 1,694.97 327.06 2,105,36First Half 1926 Sooond Half 1926

136,022164,611

,26o25

460.00450.00

20,3217,77

10,093,689,627*46

2,022.412,182,44

12,566*0912.469.92

TOTAL ~ 36(5,£1$ 9ddod0 4,2M»d5 £l,d£4,olMonthly Are, 1926 25,053 75,00 1,660.10 360.40 2,085.50

COMPARISON OF NUMBER OP ITBUS RECEIVED FOR COLLECTION1927 - 1926

(Minneapolis Only)City Collections Country Collections Security Collections Total Collections 1927 4926 1927 1926 1927 1926 1927 1926

Jan, 11,812 16,493 9,254 8,991 5,468 Sea note 24,654 24,484fob* 7*907 14,080 7,907 7,839 2,418 18,252 21,919Mar. 8,492 14,925 6,415 10,335 2,626 17,655 26,260April 4,466 11,163 6,964 10,118 5,405 15,825 21,281May 4,347 9,579 6,685 10,722 2,910 12,940 20,501June 6,767 11,988 6,066 10*789 5,905 16,756 22,777July 6,611 11,861 6,764 12,435 4,022 16,587 24,096August 8,923 12a737 5,780 10,650 2,956 17,659 25,287Sept. 17,665 17,737 5,829 |10,768 2*798 26,192 28,606Oct* 20,967 20,693 8,131 11,970 3,531 32,619 32,663lor. 16,273 16,591 6,363 11,855 3,991 26,617 28,446Dec. 12,183 14,889 6,374 12,725 4,680 23,237 27,614Total 126,303 171,736 T9 ,600 123,097 40,708 245,511 300,635Note* Security oollootions were inoluded in city and country collection figuresfor the year 1926*

HELSIU BEAI-CKCity Collections Country Collections Total Collections1927 1926 1927 1926 1927 1926

January 190 180 1*749 2,146 1,939 2,326February 181 134 1,062 1,282 1,263 1,416March 158 166 1,118 1,326 1*276 1,492April 158 118 1,145 1,179 1,303 1,297May 150 152 1,002 1,220 1*212 1,372June 162 16S 1,220 1,363 1,382 1,531July 245 174 1,200 1*478 1,445 1,652August 221 26 9 1,034 1,169 1,256 1,338September 204 160 1,049 1,203 1,253 1,563October 272 174 1,554 1,418 10826 1,592Bovenber 233 192 1,438 1*469 1,671 1,661December 246 m * 1,592 1.581 1,838 I . ™Total 2,420 1,999 15,243 16,834 17,663 18,835


CHECK COILECTIOH FOTCTXO®(MINNEAPOLIS ONIff)

There was a decrease of items handled in this funotion of 1,191,781 items for the year 1927 as compared with the 1926 total of 23,108,204, the 1927 total being 21,916,423 it«ns« A comparison of the items handled for 1927 and 1926 is given below:

Amount ofItems Handled On 1927 1926 Peor«fci«Twin City Banks (Clearings) 3,852,475* 3,780,889*Member & Non-Member Banks

(This District) 16,176,997 17,279,728 1,102,731Other Federal Reserve Districts 1,118,880 1,224,399 105,519Direot to Banks Other F.R* Distriots 37,158 44,130 6,972Helena,Montana 11,924 11,928 4Treasurer of U.S. 718,989 767,130 48.141

total. a . a i o a t t . m f m r ; m , m

♦Items drawn on Minneapolis and St« Paul Banks collectible through clearings increased 71,586 during 1927 over the 1926 total, all other classes of items deoreased as indicated above*

The average number of transit letters received daily during 1927 was 1,527 as compared to 1,454 for 1926* The average number of outgoing transit letters for 1927 was 1,588 daily as compared to 1,800 for 1926o She number of transit letters sent daily has deoreased during the last fair years through consolidations of banks, withdrawals of banks from the list of banks upon whom we handle checks, and through the dosing of banks in this district.

Improved transit conditions are reflected in the reduction of the number of items returned daily on account of non-payment or because we are unable, to handle them* The average number of items handled dally during 1927 by the Return Item Unit was 1308 in comparison with 1451 for 19260

The decrease in itesas handled is attributable in part to the decrease in the number of banks on our list of banks upon idiom we handle

c*items for collection. This fact is borne out by the inrease rather than decrease in our clearings, there being no withdrawals from our list within the Twin Cities*


The daily average number of Items handled per person la. the Transit Department for the last several years is &iven below, *?hioh table indicates the increased efficiency of the department as compared to the last few years.Year Average number of items per person daily Average Ho. Employees1927 1,064 771926 993 871926 958 96 1924 856 109 1923 736 123 1922 674 126 1921 539 158

The night foree of the Transit Department was discontinued January’

1, 1928, and a reduction of the staff of this function is under consideration which should Increase the number of items handled per person during 1928.

The average number of employees in the Transit Department during1927 was 77 as compared to 87 for 1926. Cince January 1, 1926, the staff of this department has been reduoed from 94 to 72, the present number.

The total expense of this function decreased $9,875.66 from the total expense of 1926, with a decrease in items handled of 1,191,781 compared with that year* The decrease in total expense for 1926 as compared to 1926 was 16,525.30 with a decrease of 1,399,301 items. The total expense of this function for 1927 was #107,741.29 with 21,916,000 items hardled and for 1926 was #117,616.95 with 23,108,000 items handled.

The cost of handling the various classes of items during 1927 as oompared to the average oost for the Federal Reserve System, as taken from

the latest available figures *a* given below:Olass of Items Tfait P.R. Bank Mpls. F.R. SystemClearing oheoks 100 oheoks 18.2 cents 37.7 centsgovernment Warrants 100 warrants 40.1 cents 41»8 centsCountry Checks (Outgoing) 100 oheoks 39.4 oents 42.2 centsReturn Itsms Per item 1.5 oents 108 oents

The comparative number of Items handled per person for the various classes of items during 1927 as compared to the average for the Federal Re

serve Systmn as taken from the latest available figures are listed below: Class of Items F.R. Bank. Minneapolis F.H. SystemmgE^mm<xu ---- t i m — — rSm—Government Warrants 1,378 1,120Country Checks (Outgoing) 1,169 974Return Items 384 295

CHECK COLLECTION FUNCTION (MIIjKEA£Q3*IS) Cont<do


COMPARATIVE STATEMENT SHOEING VOLOME OP ’;ORKm m m or mpiatsbb and otb** expanses

CHECK COLMSCTION DEPARTMENT (Minneapolis Only)

No, of Ho* of ratoraSo. of City Chaoke handled

Government cheoks paid

No* of Country oheoks received

item cheeks handled

Plrat Half 1927 Second Balt 1927

Total 19271*810*0001*975,0003*785*000

353.000365.000718.000

8,488,0008*858,00017,546,000

194*000201,000395,000

Monthly wrarag* 315*417 59,833 1,445,500 32,917Flrat Half 1928 Saoond Half 1926

Total 19261*877,000l^OjOOO3,717,000

391.000377.000768.000

9,282*0009.277.00018*559*000

207.000250.000 437*000

Monthly average 309*750 64,000 1*546*583 36*416

Number of Offiosrs Number of &*ployees Other TotalOffloers . Salaries Employees Salaries Expense Expense

first Half 1927 .65 #1*500.01 67.79 $42*571.44 #11*588.11 #56*259.56“ t K ' i g r •“ • * » «

Monthly average #216*67 #6*840*08 #1*921*69 #8*895.11first Half 1926 *65 #1*170.00 75*90 #45*508*82 #15*794.70 #60*273.52fleooad fialf 1926 *65 1.170*00 70*05 42.945*98 13.229.45 57.343*43

Total 1926 #2*540*00 #88*262*80 #27*024*15 #117*616.95Monthly arerage # 195.00 #7*354.40 #2*252.01 #9*801*41

CHECK COLLECTION fPHCTION (HELENA BFANCH)

The maker of iteas handled through this funotion at our Helena Branoh increased slightly during the year as oompared to 1926* while the volume handled at the Btad Office shoired a marked deorease* The number of items and amounts handled during 1927 and 1926 at the Branoh are compared below:

1927 1926Its— ftWtt on Number Amount Number Amountlilesa ( Clearings ) 205*910 #106*389*000* 218*369 #102*804*000*

(9Mt Qffioe Orders) 12*446 607*000* 12*751 591*000* Nrs®oJ 12,87* 12,769,000. 12,219 10,918,000.

Voottta Banka (Ontalda of Balma) 1,828,884 140,266,000. 1,671,814 128,827,000.IN* Oftie* dstriot 20,128 28,406,000. 26,260 24,780,000.dttM* r. t. Dlatriata 82,148 81,699,000. 88,820 41,619,000.tffMWWW of 0» 8. 181,688 18.682.000. 184.007 18,197.000.

2,298,870 #888,847,000. 2,168,020 #824,748,000.1km imb*r of r*turn 1«mm handlad daring 1927 « m 83,910 amountinjto

#2,182,880.40 m ooaparad to 88,988 ltaa* totaling #2,282,268.89 for 1928.77


OD

TWIt c m CUSARW08 THROUGH FEDERAL RE8KRVX BANK DIRECT SEMDIBOS TO OTHER RE8ERVE BANKSOf MWHKAPOLIS FOR 1927 AID 1926. BY OIR MEMBER BANKS 1927 AID 1926.

MonthJan*M .Mar.iiBar

8spt<Osfc*

Ast. of Items on Mpls+Banks

Ait. of ItflU on St*Paul Bks*

Grand Total 1927

Grand Total 1926

Daily Average Clearings

1927Aist* Held

Over 1926

Humber of 1927

Items1926

Amount1927

146*161*077*44 121,727,070*59 161,9X6,060.99 141,296,260*63 140,292,064*95 168,909,490*45 146,494,686.56 166,690,141.10 168,466,671.81 206,784*701.46 198.49T.740.60 166,796*276*80

Total 1,916,188,848.86

77,609,150.1664,261,124.7180,840,409.0276.758.315.64 69,557,422.91 78,922,546.1174.405.844.65 74,765,408.15 78,486,001.06 94,251,946.59 91,616 >966.42 86,971,609.58mzsoscir

225,670,207.69186,978,196.10252.766.490.01217.056.664.17 209,629.487.64257.851.856.66 220,898,227.89 280,645,649.23 261,950,672.87502.966.647.66286.114.708.02265.769.886.18

2,862,246,570.51

241,806,625*46 205,680,431*28 266,906,668*45 259,159,002.62 227,709,690.02 206,044,b43.74 261,096,105.08229.671.815.67 247,756,792*07 276,122,241*25264.802.526.67 267,402,667.46

;,949,036,59fco66

241,700.09196,476.56194,990.72213,261.98201,968*48212,366*99226,890.65276,278.47274,066.40276,710*66297,905.54602,117.96

6,112^720.18

195,919*15176,250*28181,896*66220,344*16230,244*06232,148*16234,830.02263,010*82192,946*27220,268.97260,181.62439,098.76

123,026107,076125,122113,853112,130106,876116,486121,162115,381127,724119,667127,950

1,411,312

134,191 121,183 148,311 142,243 136,269 146,460 142*351 183>347 127,921 127,265 126,010 136,466

73Z27<

11,562,661*30 9*901,768.26 12,745,466.55 12,269,063.41 10,957,320*60 11,576,031.09 15,250,949.26 12*708,657*41 11,446,564*26 12,711,949*17 12,270,660.29 12*528,271.96

1926

145,266,923.25

13,593,914*28 11,470,137.27 16,144,60*1.0? 14,791,068.04‘ 13,868,OOb.55 14,741,5C0ol6 14,^74,087*10 13,22T.996.81 13,080,502*20 13,272.286*03 12,922,866<>94 12,661.732.66 163,046,751* 33

At . by Months 169.S98.6M.0r 78,921,785.46 2SS,Mfc,44T.62 246,765,049.85 168.5S5.86 2W.426.74 117.609 136.167 11,9S8,910„27 13,687,229,82


BT mUTBS COMPABATX712 FIGURES FOR TRANSIT DBPARTMEBT MIHNHAPGLIS OHLT053>

worn

Dally Average Huniber of Transit Letters

Daily Avareg* Humber Bally Average Humber

Janua ryFebruaryMarchAprilHayJanaJulyAugustSeptemberOctoberHovemberDecember

Average by Months

1 9 2 7 1926 2? Ii**o 1^25 ]f 61*201*21

lta15»

3 2 7

1 3315831590 m

158515871*38 i*m 1 5 9 1

1555 1 *3 * 15771 5 6 1

1 6 6 6

1376140119811570

s s1527Ikll1501

15701560ifrQ

1527 1588

ot Transit Letters fr»nt „

12^1920 1883 1906 1855 1855 1829 1002 IT© 17391 7 2 6 1686 Ifeg1800

of Return Items..IWBMt

123

13831 3 2 8

1 2 2 9

1 2 9 2

1 2 6 0

13Q512561 1 7 1

1298

192?

m i

1 3 0 s

Daily Average All Dally At .Trans.Items Dally Average Somber Other Items Sent Sent Direct hy Oar cdf Items Per Person

JWwfrfT Bfttfct192770,3**72.93*7 2 , 1 6 6

J2.3p65.169

S. W .70 0

65.3397 2 .3 1577.9968O . 3 0 5

76.936

1 9 2 6 1 9 2 777.67679.17*78.3*379.8357H.7067 6 . 2 1 6

71.0026 7.0W73.81677.*2385.30580.&8

* 9 2 1

* 8 6 7* 5 6 0

!2g1*2 6H$191*87|H>35*9 12*982*920

1 * 5 1 72.530 76.833 *689

n r536855085 %5 6 9 0

5*mSTio5^75512951175,8955*355§a5375

1322

952985

1 0 2 7

1<&210S61 1 0 610**1026lOfil1119115611S81 0 6 *

192&8 A906969992 10(fe

10*697997195*

1028Ul<1<-mm993

Daily Average Clear*- Sally Average Clears Dally Average Oat af Dally Av. Ho. Banks Ing Items Returned im& Items tftaseat Town Items Missent Remitting In Other

Daily AVo HOo Drafts Received in Other Dally Average Hou&~MOITH UmwiKl . ..

1927 1926 1 9 2 7

January 52 ^7 U2February % 50 30March 52 §8April 5° W

*?May P*8 W 3*June 5 4 31July *8 52Aogftst & 51

wSeptember P 51October *0 52 3 *Voveafcer *9 £ 27December 52. fia toiMfc

Average by Heaths *9 3? 32

1927 1926 1927Star, fs rtu

1926rttftt tfift

1927■fflfcLJtesfcp

1926—IgEJ3L

1?27JtolfiZSft!

1926

25 2k IT 306 306 3U6 3H6 8125 22 16 310 303 329 333 82 9331 21 29 29^ 317 313 351 80 9125 19 30 290 319 316 81 90

21 *2 312 317 319 3*& 78 88? 6 2k 36 295 318 316 3% 79 8940 25 3** 283 322 3*14 77 9029 27 27 289 31^ 3(* 3I& $ 8833 5? 23 278 310 292 328 76 8526 27 285 272 300 306 75 8026 2** 25 282 3<U 296 326 T5 80Ik *£ m \oo 291 221 12. a

3X 23 27 291 309 310 338 TT 8TDigitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IXDEBUL *AWt o f mgnMKMSo

o o

nmm w mAmrf nr TO o m EC40U H U M I^ - - . n -

fBDUtfQUS py

O f f

312.3*1 19 .M .1U .29, 3 * 9 u r . 3 » . m ^

* 4 8 J f r S K f r S

m . « M t t M o l . 9 9 . 3 ? gtaio 1(7,0 1,211.2*

O ? » 3 w » > 8 * « « |19(i90l,399.sis L so l n j « a i » M 8 . w

l.m.fe* a.HM,m.T2 i.*5#.T5T 77,*«,i*9.to 1.338.55 73.7&,T0e.75

73.T39.U2.65 l . J ? M ® n.«e.9*».95* • 3 ® E ‘ 2 S ’ 2 * 8

, o o

e 3 9 B » 8 O 0

j* i***t ®j i ® 72 g . M B . S S l . *

» . 9 9 M 5 6 . > I 0

X T . m . f i e . * *

21,653,608.85 2 0 , 7 8 2 , 1 6 9 . 2 1

» . 7 B . m o i

2 3 , 2 2 1 , 9 7 6 . 2 7

z l i ^ y K l R * ^

a o . 9 7 i . 9 9 9 . o o

81,121.38S.1 a . f o z . i T z . n

3 . o W

8 . 9 9 03.»02,1062.8593.17*5 . 1 »

?:§?

‘».3T3,lft.»3,M3.0*.Q|3 . « 5 M 6 3 . 7 6

3.1*2,290.734 , 2 * 1 . 0 1 6 . 0 2

i f - !

254,72 6 .4 5

1 9 1 . u 3 . 6 3

190.035.35 t , m . g

•rtW 3,*5*.*T5ptM5A0J.J1k.T0

1 6,17 6 .9 9 7t95T.H6.895.zr

l . U M »

♦255.796.7H».233T45i

|W.8a5,3fil.9511.92%

M M M r

l i a s 3 * 1 . 0 3 9 93.8*10 3.097 9 9 %

STjMb | 1C7.985.8SI.23 $ 79.*18,074,, 60

M a i fetal i t M ................ 21,916,1153

f l m U f t t a l M l ............................................................^ 1 3 . 3 6 7 . 7 1 3 . 9 9 5 . 1 0

* 21,316,392.85 I 3.902,nH.07 $ 26o.78il.89

235.237,® 228.6fc.82 1 9 5 . 0 9 6 M

2 9 ^ . 1 5 2 . 7 3

2 9 0 . M M . 6 0

t C R ™ « l * < M W » 7 w « (W

a s *

♦3,129,418,66

, 810

7 1 8 . 9 ®

5 9 , » «

6.660.502.02 5,663.236.537,«0,U 5.Q7.5^,307.086.582.760.037,898,160.7>fc.91«.Hfe.537.26*,03*.517.W9.W .929 . 3 M . W 1 . 0 2

|89,ote.«g.2j

$ 7.‘•20.185.27


T-foo

iHSSEAPOLIS AND HELENA BRANCH OPSRATIGIS OF CHSCX CLEARING AHD COLLECTION DEPART/DOT

Detailed lotion. ffqribcrs andAgomts of. Ueros handled by Months during 1927. with Totals for 1923, 192H, 1925, 1926 and 192 f.(In thousands only *000 omitted)

IT8MS DRAflN OH BASICS IF COT DISTRICT

Month1927

Jan.m .Mar.Apr.

AirAa*>Sept.OetoSdToDee.

Local

Sfti

326289360320307317

3 ?y S3,67

■SfiSL

1*2,595 117,288 ltt,7l6 133*091 «|,S16 W9#2S 1*1 ,1 6 21*9,290X75.5A198.591

98988899899q

58,33*

f.325 ,818

7 9 . 0 5 2

7 2.Hu n . oo* *»,iu95.6108S.H9781-872

0th.r Bank.

imwnt »o- k«am\ 52s.1^071298158514801*1915271398M29lUgO1§831628

J f i J l

69 .**788 7 . 1 6 7

5 3 . 6 1 98 3 . 2 7 2

9 1 . 5 3 5

8 7 . 6 9 789,082

100,380U9.617105.36^

Interchangsd Branch and Head Qfflag.

ITOtS DRAWN ON BATIKS NOT IN 9TB DISTRICT

Amount Wo. Amount

32333333333

JL

1.9801 , $ 6 2

1,8091 , 9 1 91 , 8 6 0

1 . 8 5 2

1 . 9 6 6

2 , 1 3 93 . 7 0 2

4 , 6 7 6

*.9?83.17ft

DirectSendinss

Other Re-* serve Bks,

S?. A o o ^ NO. Amount

3 *.373 113 23.69333

3.10(33.857 i S

19.60924,1+57

3 3,889 105 23.29233

3.2J50 9698 S : S

33.7*2

9U 2&.9713 100 23.2893 4,281 92 * .7 3 73 *,896 101 26.3533 H,°5° 91 SH.l^3 *.105 98 2&.S95

36 *6 82fc 1201 287.396

Treasurer of TOTAL FOR TOTAL FOBUnited States 1927 1926

?fet Amount HOo Amount Ho. Amount

65 7.7*5 1926 322.015 2089 366.33657 6,505 1756 267.770 1877 286,I 5U72 8,265 2146 33^.089 2286 373.9727? 8,911 1998 32»+,»+50 215U 3W ,9%74 7 .7 p 1910 322,82'+ 2029 326,560

J° 9.169 2026 359.887 2168 365.62769 8,173. 1895 340,018 2C52 36&.21567 8,656 1955 31+7,206 1938 3*+5.3397* 9.1*0 2008 401,855 2035 375.29986 10,879 2252 1+60,622 2219 416,21867 10,063 2143 *U3.7*fc 2159 391.99670 9.373 2223 382.672 2100 379.785

850 10^,672 2^238 ^,277.152 25286 U.336,1+50Total *0<* 1,827,5*9 1® 881t10 i 18009 1,098,073 35 31.537

3 3

1 9 2 3

2>«38 277.1522528^ U,336.U502 6 5 5 1 U,0 0 9 , 2 0 6

2 6 2 0 6 3 .6 5 1 .2 2b27*122 3.U12.138


HELENA BRANCH REPORT OF THIS TRANSIT DEPAHTliEHf FOR TUB YEAR 1927

Clearing* Drafts on frs Member & Son-MemoerNumber Amount Number Amount Number Amount

January 19,000 $ 7,990,000 3,000 $ 7,694,000 127,000 # 9,786,000February 16,000 6p531,000 3,000 6,389,000 116,000 8,020,000March 20,000 7,626,000 3,000 7,713,000 154,000 9,712,000April 18,000 7,952,000 3,000 7,632,000 147,000 9,877,000May 18,000 7,135,000 3,000 7,600,000 142,000 9,535,000Jane 18,000 8,198,000 3,000 8,565,000 153,000 10,452,000M y 18,000 8*800,000 3,000 8,017,000 144,000 10,398,000August 17*000 8,841,000 3,000 8,747,000 149,000 11,139,000Septesfoer 18,000 9,791,000 3,000 8,838,000 157,000 13,322,000October 20,000 12,956,000 3,000 12,095,000 179,000 17,669,000ItfnAir 18,000 11,040,000 3,000 11,440,000 179,000 15,161,000December 19.000 10.138,000 3,000 11.045,000 183,000 15,186,000Totals s w j w r 1 Ide,d$S,Gbd 3§,66o £ioe,773,fl5o i,8S6,o6o " lItf,2Sf,MoMonthly Aver•

XtSflU 18,000 3,000 152,500Monthly Aver•Amount 8,916,000 8,814,000 11^688.000

To lead bJfice fey tJs to Other keserve bank* treasurer oi* tj.S.Number Amount Number Amount Number Amount

January 2,000 # 1,725,000 7,000 # 2,699,000 9,000 I 1*084,000February 1,000 1*271,000 6,000 2,317,000 9,000 842,000March 2,000 1*619,000 6,000 2,805,000 12,000 1*245,000April 2,000 1,684,000 6,000 2,510,000 11,000 1*367,000May 2,000 1,622,000 6,000 1,757,000 11,000 1,190,000June 2,000 1,623,000 7,000 2,194,000 12,000 1*271,000July 2,000 1,771,000 7,000 3*516,000 12,000 1,263,000August 2,000 1,844,000 8,000 2,310,000 12,000 1,392,000September 2,000 3,411,000 7,000 2,953,000 12,000 1,330,000October 2,000 4,320,000 7,000 3,286,000 12,000 1,569,000November 2,000 4,644,000 7,000 2,779,000 10,000 1,654,000Deoember 2,000 2.872.000 8.000 2.493.000 10.000 1*424,000Totals £3,oo6 "wJSSr- ' I ST,8S575W 142,500 ?1K,^1V5oo.

Monthly Aver.Item* 2,000 7,000 llfOOO

monthly Aver.Amount 2,357,000 2,633,000 1,303,000»

GRAND TOTAL OF ZTSMS - (BAND TOTAL OF AM0T7IT8 »

2,322,000

$428,660,000


FEDERAL RESERVE AOMTT S OFFICf (MITOfEAPOLX8 OILT)

The unites of work uslpwd tgr tbi Federal Reeerve Board9 • Functional Expense Manual to the Agent's Offioe are Federal Reserve Vote Ziwtii Bank Relatione* Bank Examinations and 8tatistioal and Analytioal 0

lbs oost of issuing Podaral Reeerve Iotas, including records and reports* was |S,180.44 for 1987 and #2*841.11 for 1926, employees salaries being aooount* able for the Majority of tbs slight inereas

The Bank Relations expense for 1927 vim #6,282.12 as ooapdrod tfe #7,242.49 for 1928. Bsployees salaries inoreaeed #386.44* offioers salaries decreased #272*68 and misoellaneoue expense decreased #1*073*28.

Tbe statistical and analytioal unit (Including Administration) expense during 1927 was #16,012*67 as oompared to #11*816*52 for 1926* an inorease of #1,196*16. Salaries paid to employees inoreased #2,471.81; salaries paid to offioers deereased #1*114.99 and miscellaneous expense deoreaaed #160*17*

Tbe ooets of tbs monthly letter for 1927 were #8,859*14 as compared to #8,040*27 for 1926, an inoreaee in tbe ooet of printing and stationery of #886.60 and a deorease in the amount of postage of #17.78 accounting for the inoreaeed expense.

The library expense for 1927 was #1*461.80 as oompared to #1*828.82 for 1926* the deorease in expense being distributed as follows: #68.80 employees salaries* #199.80 books, news service, eto.* and #109.22 miscellaneous expenses*

The bank examination unit ooets were #26,609.62 for 1927 ae oompared to #24,014.97 for 1926, an inorease of #1*694.65. The oost of Bational and State Bank Examiner^ reports for 1927 was #7*662.00 as oompared to #8*149.00 for 1926*

The ooets of tbs Federal Reserve Vote Issuee unit is given under tbe eoments under Federal Reserve Votes.

BAHK PBLA.TI0VSlumber of Offioers Wumber of Employees Other TotalOffioers Salaries B^loyees Salaries Expense Expense

First Balf 1927 Seoond Self 1927

Total 1927.80.58

12,660.02 1.787.49 t4.847.61

.61

.60T 698.48 T2LS& $1,820.66

#861.72202.88Ssel.bs

$3,5X6.222,116*90*6.232.12

Monthly Average # <62.29 $ 1X0.06 47.00 * 619.84First Balf 1926 Seoond Btlf 1926 Total 1926

.75

.75$2.3X0.022.810.02jsrao.sr

.66

.611 464.95620.17

$ 986.12$665.86 X.081.48 fi. 637. S3

$8,880.82*8.911.67

Monthly Average # 885.00 $82.09 $ 186.4* $ 603.64


STATISTICAL (Including Administration)

Humber of Officers

f i r t i h s i r I M P .to)Saoond half 192? .90

Total 1927Monthly averagefirst half 1926 *65Ssoond half 1926 .85

OfficersSalariesISTHOS"

975.00ySJHTM

t 282*50 $2,252*50

Bumber of dcyees

BnployeesSalaries’IT W EIT3,717*65w n m . T r

& 714*89 #2,945*79

OtherExpense

T"t80ff493.42

inrar gg£ 86*99 ? 438.78

TotalExpense#7^26*60'5*186.07

tiyffior# 1,084*98$ 5,697*07

4*41

9*929*58

fetal 1926 ^XBflTS StfOT.'ttMonthly average i- 575.41 C* 508.95 $ 100.34 $ 984.71

MONTHLY LETTERPrinting and

Postage Stationery Totalfirst hail1 1^27 Seoond half 1927

Total 1927477.02950*00

vl»521*811,210*51

‘,1,798.8#1,860.91?5,8W.H

Monthly average 68.98 $ 211.01 $ 279.92First half 1926 Seoond half 1926

Total 1926-I 350.00

494*75m e w

~;1,055*91 1,159.61

Im S O ?$1,886.911,664.96$3,040.27

Monthly average f 70.99LIBRARY

& 182.96 $ 182.96

Number of Baployees Salaries

Nsps Service & Subscriptions Books

OtherExpense

TotalExpense

firsTKjay I WSecond half 1927

Total 1927•h*54

% 448.9? 278.50

JTTWJSF$176.96278*21

3 114.19 88.67

$ 202.85

" T "TC. BS.25

7— V O G$ 815.67

645.65 ?T,750(5

Monthly average : 60*62 § 97.95 16.91 $ 6.31 f 121.77First half 1926 Second half 1926

Total 1926*75*46

0 478*46 907*51

r ~ m m

§158.10551.78S O O T

* 203*67 164*28

?.1 S O F$ 21.28

165.743TT8F.155

$ 861.51 967.51

$ Y ; m M

Llonthly average V- 65*50 # 40.82 # 50.66 $ 15.42 £ 152.40BASK EXAJHTTATIOJfS

Jfumber of Officers

OfficersSalaries

Nteaber of Bnployees

EmployeesSalaries

OtherSacpense

TotalExpense

fixtnSEi iswSecond half 1927

Total 1927•94

v2,596*6o 2,820.00

AM5*42 4,564.85

n t o , w . w4,726.81

fXnr,im.w*12,111.64*25,£6$.&8

Monthly average l 449*58 J 778.69 $ 905.85 :• 2,154.15first half 1926 Seoond half 1926

Total 1926*65*65

|1,862*481,862*51

5.805.98

$4,555.984,515.59|8|iV]l.57

$ 5,680*92 5,758.59

® 7 ^ o r

fll,893*48 12,116*49

Monthly average :■ 910*49 739.88 $ 951.55 $ 2,001.25


& £ £ & & £1927

She examinations and credit investigat ions aadehy this Department in the itridQi stats* in the ninth federal Reserve District wars as fellows*

Minnesota Montana fforth Dakota 8outh Dakota ViseoBslft

CreditteffljhBRUgBft 9

29 13 411

___3^68

1I

m i m L & B & i

iwdflsllsaE

CfAlt la, yestlgatlpns

frttMML

■rataljS E E of aalair

7, m« Bailey 2 I 8 $ 77.24Herbert Eallenherg 38 36 1,206,56S. Do Sharratt 26 I 2? 781*31■U A0 Cutler 3 3 80.68H» Co jTcnes

68 T .70mjsit *s nod Hi9 2|*y7»8§

Assisted aa Creditfam tkattomI* 0 Jones 22Ho Do Sharratt 4Ho Co ?lsft>erlake 1Ao Ao Hoerr _

28 $ 584.622 70 $ 2,'m.M

28,320

5,83028,850

Total tf

^ lwB|38P3 2 , 8 7 8 , 6 8 9

21,207,39920,634e32478,483*094

$75,483*094

Examiners also made five special visits to member hanks ihen examinations wars not made* Mileage shown in tha above table includes mileage traveled in asking these special visits0

Office Wcxk

HOo of roports received fro® the Chief National Baak jgwrtner** Office,***^ I <,386 (Bio cost ef these reports aggregated $7*482*50 for the calendar year)150 duplicate copies of the reporteof examination of Montana National Banks were received from the Chief Sxaminer's Office, and the cost of these add!* tlonal copies aggregated $337*50 for the year,ill the oritlcleafele paper contained in the report* of examination of hades that harrow, with the exception of Montana banka, was listed alphabetically for the Discount Department®

Bfifflrtt rf pf g*»tt Mipflrcr iMfaNOo of reports of examination received from the varioni State Banking Pepartaents in the Ilnth District of State member hanks examined independently by them0» 21All reports of examinations and credit investigations made fey federal Reserve

Bxaminers ef state hanks in the Hiath District vero typewritten in this office and en* 80$y aas forwarded to the Federal Eeserve Board, m o copy retained for our files* one copy forwarded to the varloua 8tato Banking Departments In the Hiath District,, and one copy forwarded to the bank examined.


»2®

All of the ©ritioisable paper contained in the report* of state member banka that borrow, with the exception of the Montana hanks 0 was listed alpha* betically for the Discount Department0

All of the reports of state meznbor banks were analysed on comparative analysis sheets to ascertain the progress made from one examination to the next.

When state member banks were shorn by reports of examination to be in an unsafe or unsatisfactory condition, special letters were written either to the bank or to the State Superintendent of Banks, calling attention to the unsatisfactory and criticised matters 9 with a request or direction that correct ire action be takeno Copies of replies received from such menfcer banks were forwarded to the Federal Reserve Boardo

Reports of Earnings and Dividends and Reports of ConditionApproximately 60000 reports of earnings and dividends and reports of

condition were received, cheeked and recorded.

Applications for permission to exercise fiduciary powers approved, etc.The following applications for permission to exorcise fiduciary powers

wore approved by the Federal Reserve Board during 19271

Name of Bank LocationDate

Approved‘1 ^ 17^27

Capital#100,nxr

PowersFirst Rational Bank Lake Linden, Micho UaiisdIron National Bank Iroowood, Mich. 4- 6-27 100,000 LimitedMiners National Bank Ishpemingg Mich. 6- 6-27 100,000 LimitedFirst National Bank Calumet, Mich. 9-27-27 200,000 FullFirst National Bank Laurium, Micho 10- 5-27 100,000 LimitedFirst National Bank Fairmont, Minn0 1-19-27 100,000 FullFirst National Bank in Minneapolis, Minn* 10-12-27 6*600,000 FullGrafton National Bank Grafton, N. Do 6° 3<=>27 100,000 FullCitizens National Bank in Sioux Fall8e S. Do 6-1047 100,000 Full

Twelve applications of individuals for permission to serve at the same time as directors, offioers, or employees of a member bank and not more than two other banking institutions under the Clayton Act, were received and approved by the Federal Reserve Board during 1927,

One hundred twenty-one applications affecting the stockholdings of member banks in the Federal Reserve Bank were received and approved during the year.

Applications for National ChartersTotal number of applications referred to this office for recommendation.«° 24 (Of these, 14 were granted charters by the Comptroller of the Currency, charters were refused to 6, and the organisation was incomplete as to 5 on December 31, 1927o)

Information regarding suspended banks obtained from State SuperintendentsDuring the year at the request of the Federal Reserve Board, we mailed

forms to each State Superintendent of Banks9 requesting information on suspended non-member bankso These forms show the capital, surplus, deposits and borrowed money of the banks at the date of olosing} also the primary cause of closing and contributing causes o When the information is received from the various State Superintendents, it is then forwarded to the Federal Reserve Boased

8 6Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

3"»BAM CHARGES IH 1927

Total number of member banks in the district Jan* 1, . 792, 16

1

Hational banks absorbed by non-member state institutions... 9Hational bank absorbed by member state institution... 1

4Rational bank consolidated with another national bank 1Hational banks succeeded by other national banks... 3Hational banks succeeded by non-member state banks..• 1

311116 61

Total number of member banks at the end of the year...... 748

State Member HationalState feanks BanGT TotalBSBflto.".-.............. “T - ~ i r

289 30473 97142 14499 10846 47

~vr - w “W

A* MembershipAt the olose of the year, there were 748 member banks in this

district, as compared with 792 raember banks at the beginning of the year . There was a net loss of thirty-three national, banks and eleven state banks* The total membership at. the olose of 1927 was divided into 687 nationalbanks and 61 state banks* The new members are:

Ho*of Sharesgame of Bank Location Subscribed

MINNESOTAColumbia Hational Bank of Columbia Heights 18Beoker County Hational Bank of Detroit Lakes 33Pioneer Hational Bank of Duluth 72Western Hational Bank of Duluth. 72First Hational Bank in Jackson , 24Central Hational Bank of Minneapolis 90Fifth Horthwestern Hational Bank of Minneapolis 66Fourth Horthwestern Hat’l Bank of Minneapolis 90Minnehaha Rational Bank of Minneapolis 72Third Horthwestern Hational Bank of Minneapolis 162Security Hational Bank of Montevideo 36Citisens Hational Bank of Olivia 21Midway Hational Bank of St* Paul 90

RORTH DAKOTASecurity Hational Bank of Hope 18First Hational Bank in Langdon 36

SOOTH DAKOTAFirst Hational Bank of !*ee Heights 21

HATXOHAL BANK RESTORED TO SOLVENCYFirst Hational Bank Hardin, Montana 46


MEMBER B O O SB7BRIB0 QOBBBOTIOEB WITH THIS FEDERAL RESERVE BAPK DPRIMg 1907 BATIOHAL BAHK3 ABSORBED BT BOfr»MEMBER 8TATE IHSTrTOTIOHS

Bo*of SharesDate Mass of Bank Looatlon Surrendered£33=127 HiSFlKIonal Bank KBSTteaa* ~ T » ------

(Absorbed by State Beak of Henska)4-6-27 Firet Mational Besik Slayton, Mlsm« 21

(Abeorbod hy 8tete Beak of Slayton)10-24-27 Brookenridge Mational Beak Breokenridge, Mian* 86

(Abeorbod tgr Far* ft Mer. 8tate Baiik, BrMtonrldfi)12-27-27 Firet Batlonal Beak Brloelyn, Han* 18

(Absorbed tar Stato Bank of Brioelyn)M 9 4 7 *iret Bational Bank Belt, Moat* 20

(Abeorbod Igr Faraere ft Miners State Beak, Bolt)4-18*27 First Bational Bank Balarille, Moat* 20

(AfesoylM Iflr Faraere State Beak, Balarille)2-11-27 City Satioaal Bark Linton, V* 0* 21

(Absorbed by Peoples State Beak, Linton)4-22-27 U n 8took Batlonal Bank Mettlnger, B* D* 80

(Absorbed bgr Adaas Oouaty 8tato Bank, Brttinger)7-1-27 First Bational Bank Byadaere, H. D* 18

(Absorbed ty Bank of B^ndaere)BATIOHAL BABK ABSORBED BT MEMBER 8YATB IB8TITOT10E

9-29-27 First Batioaal Beak Medolla, Mian* 24(Abeorbod by State Bank of Medelia)

BATIOEAL BABBS ABSORBED BY OTHER BATlOiAL BABK8

1-17-27 Merohsats Batioaal Bank 8t* Cloud, Mian* 74(Absorbed bgr Aaerloaa Batioaal Baak9 St/Cloud)

4-20-27 Faraere Mational Bank of Alexaadrla Alexandria, lOaa* 90(Absorbed ty Famers Bat11 Besik in Alexandria)

8-19-27. Merohaate Batlonal Bank Dioklnson, B.D* 48(Abeorbod ty Firet Mational Bank/ Dioklnson)

8-7-27 First Batioaal Bank Wetoaka, 8* D* 18(Abeorbod fcy First Batlonal Bank, Aberdeen)

BATIOHAL BABK C0BS0LIDAT5D WIfH AB0TH3R BATIOHAL BABK4-2-27 Moorhead Batioaal Bank Motorkead, Minn* 80

(Consolidated with First Batlonal Bank, Moorhead)BATIOHAL BAIKS 8BCCESDED BT OTHER BATIOHAL BABBS

4-28-27 Hope BfctlonalBank Hope, B*D* 88(8uoooodod lay Security Mational Bank, Hope)

11-21-27 Firet Batlonal Benk of Langtan Lengdon, B. D* 48(Suocoeded by First Batioaal Beak in Lang&on)

1-17-27 Firet Batlonal Bank Wessington, S. D. 24(Suoooeded by Citisene Batlonal Bank, Wessington)

BATIOHAL BABKS SBCCBEDSD BY B0B-M8MBER STATE BAHKS1-6-27 lyon County Batlonal Beak Marshall, Minn* 42

(Suoooeded ty Marehall State Bank, Marehall)STATE gEMBBR BABK ABSORBED BT A HATIOHAL BABK

2-4-27 Deposit Bank end Trust Company Winona, Minn. 300(Absorbed ty Firet Mational Bank, Winona)

STATE MEMBER BABK C0H7SRTKD IHTO A BATIOHAL BABK9-1-27 Columbia State Benk Columbia Haights,Minn. 18

(Converted into Columbia Hat'l Bank, Coltanbia Heists)


6»

HATI PETAL BAHK8 UQJIDATSD DOS TO XHSQLVBNCY1-17-27 Fanners National Bank Brookings, S* Do 691-17-27 First national Bank Benson, Minno 241-29-27 First national Bank Kannaford, N. Do 151-29-27 First national Bank Brandon, Minn* 212-2-27 Citizens national Bank Ortonville, ?.;inn* 202-11-27 First national Bank Detroit Lakes, Minn* 452-16-27 First national Bank Leeds, H* Do 182-21-27 First national Bank Gonyiok, Minn* 182-21-27 First national Bank Elkfcon, S. D« 276-4-27 First national Bank Colaan, S* D* 846-4-27 First national. Bank Argyle, Minn* 868-19-27 First national Bank Bosh City, Minn0 868-26-27 First national Bank St* James, Minn* 454-6-27 First national Bank Beardsley, Minno 185-24-27 Parsers national Bank Bed lake Falls, Minn* 184*6*27 Oakes national Bank. Oakes, H* Do 844*25-27 Anmoose national Bazik Anamoose, H* Do 195*9-87 Peoples First national Bank Olivia, Minn* 806-9-27 First national Bank Montevideo, Minn* 696*17-27 First national Bank Boyosrvllle, Wlsoonsin 186*17-27 first national Bank Carlyle, Mont* 176-17-27 Farmers national Bank in Lldgerwood, Ho Do 816-17*27 First national Bank Stanley, H* D* 196-10*27 First national Bank Clinton, lOnn* 2 16*24-27 Parmsrs & Iferohants Hat'lo Bank Aloester, S* Do 488-15-17 First national Bank Edgeley, n* Do 646*19*27 Oltisens national Bank Albert Lea, Minn* 468-27*87 First national Bank GraftOn, H* Do 609-20*27 First national Bank Rolette, H* D* 1818*80*87 First national Bank Biwabik, Minno 20

HATIOHAL BAHKS VOUJHTARILY UOJXDATED18*80*87 First national Bank Raymond, Mont* 18

STATE MEMBER BAHK LIQUIDATED DIB TO IH80LVEHCY7-14*27 Farmers A Merchants State Bank Saoo, Montana* 18

STATE M36BBR BAHK WITHDRAWALS1-6-27 Oltisens 8tate Bank Hew Ulm, Minn* 1208*6*87 Bask of Ellsworth Ellsworth, 1Hs« 468-16*87 Farmers & Miners State Bank Balt# Monte 888-6*87 Seeurlty State Bank Lewiston, Minn* 867*24*87 State Bank of Hew Riohland HOw Hohland, Minn* 469*18*87 BradleyBank Tomahawk, Wis* 4610*82*87 Farmers State Bank Hsyfield, Minn* 2611*85*87 Bank of Boulder Boulder, Mont* 21

M B H M BAHKS THAI HAVE BSEH ABSORBED B7 OTHER BAHKS AHD WHICH HATE HOT......................a m w a m a g m t u r n s m r w m m u m ; v r n m m ^ ' —

Bats Hams of Bank Location11-12*25 Bankers national Bank. Minneapolis, Minn*

(Absorbed by Metropolitan Hatlonal Bank, Minneapolis)12*14*26 first Hatlonal Bank of Litohfield, Minn*

(guooeeded by First national Bank In Litohfield) l>26*86 E4oa Hatlonal Bank Rioe, Minn*

(Absorbed by First national Bank,Rloe)6*26*87 First national Bank Long Prairie, Minn*

(taken over by peoples national Bank, Long Prairie)7*6*87 First national Bank of Jaokson Jaokson, Minno

(Suoceeded by First national Bank in Jaokson) lt-5L*i7 Bibbing Hatlonal Bank Hibbing, Minn-,

(Taken over by First national Bank, Hibbing)


<=>§c»

CLOSED ,m!BER BA1IICS THAT HAVE HOT AS YET SflRRENDERH) THEIR STOCK IN---------- — m m a a s n m m m w ----------

Date Ham© of Bank Location

4-26 =>27 How First National Bank7«14“27 First National Bank12~10<=27 First national Bank6-20“27 Firat national Bank

in Lambertan Lamberton, iUnn*East Grand Forks, Minn* Hope, N. Do F.onnobeo, S. D


m m L j m m j m

Statistics covering operations in Federal Reserve Kotos for the past year show that the amount of notes both issued and retired uri It•• than ftor any other year sinoe 19X7. Tho amount of notos issued in 1927 m $36,694,600 or $10,000,000 loss than tho issue of 1926. Vo* notos *6«tt0* to tho bonk amounted to $21,209,000 and notos whioh hod previously boon la circulation were reissued to tho aiowfe of $16,485,500. 2a 1916 tho issue m s di-ridtd into $51,312,000 of now notos sad $18,390,000 of notos previously circulated. More fit-for-use notos would have boon usedia 1916 bat no did not have them available.

Receipts' of our now notos from tho Oosqptroller of tho Currencyduring tho year woro $19,080,000, a muoh lowor total than usual as our re- qulraaoats for a number of yoars oallod for muoh heavier shipments trm Washington* On Deeonbor 51, tho Agent had on hand $10,174,000 ia BOW notos or approximately $2,000,000 loss than tho amount on hand at tho oloso of 1926, fhe total of notos hold was greater, however, than ono ysar ago by foaooa of tho USfd notos on hand haring inoroasod free $1,909,000 on Oeostiber 51, 1926 to $7,560,000 at tho oloso of 1927# At tho oloso Of 1926 tho Agent had no fit notos on hand in denominations of 5*s, 10* s sad 20*s.On December 51 the amount of suoh denominations available for further oir-oulation was $5,490,000.

Outstanding notes as shown by the Agent»s reoords were $66,910,6560* December 61, 1927, a deorease of $6,162,566 during the year, Tho teak, however, hold loss notes in the oash than ono year ago so that the aotmal doorcase of notes ia the hands of the public during 1927 was $7,666,000*

Our destruction schedule for the year has been gratifying for the roaooa that the amount of notes destroyed was $26,970,856 in ocoqparison with aa average of $85,800,000 destroyed for oaoh year siaoe the dost ruction ofnotes took on importance. Xt is quite likely under present oonditioas that our aotos destroyed in 1928 will not show a larger average than $2,000,000 per aoath* Out of a total of $596,046,000 in aew notos issued by the Agent since organisation, a total of $320,785,000 has been destroyed at Washington. Re* Issues of notes totalled $110,283,000 making a grind total of deliveries


to the baak by tha Agent sinoe organisation of #505c279D000o In percentage of denominations issued during 1927 there was a gain in the issue of $10 bills only over the 1826 *ssue, all other denominations showlag a decrease e At tha

present time the amount of |20 bills In circulation is more than dsuble the

amount of |5 bills and exceeds the amount of $10 bills by iSoSOOpOOO© fho per*®«r

centag® of higher denominations issued in 1927 dropped noticeably and indicates that money stored away has been redeemed0 at least In part0 or oxohangod for smaller denominationso

Oost of note printing during 1927 was $31P502o50 to which must bo added |20614o8S of expense covering insuranoe and shipping oharges on notes seat to Minneapoliso TJfc to June 30P 1927 printing costs were on a basis of $86o60 per 1000 sheetsD after which date the costs were lowered to #35<>60 per 1000 sheets « This reduction would lower 1928 costs approximately #800 .on a liko volume of notes and at this time an estimate of the yearly costs would be |8O0OOOo tho shining oharges on any notes sent us calling for an additional $2,500 of oa$onse0

From the latest statement received covering the amount of notes printed and on hand at Was hlngtan, we have a stock amounting to §86*880,000 which is approximately 26 per oent more than was held a year agOo

Payments of gold certificates have had considerable bearing on our

issues of Federal Reserve notes o Nearly |4f7000000 in gold certificates wore sent us by the Treasury Department during 1927 for issue and these notes are steadily redeposited with us0

FEDBRAL RESERVE KGTE ISSUES

Humber of OfficersOff io© rs S alaries

litcaber of Employees

EmployeesSalaries

OtherExpense

TotalExpense

First Half 1927 o25 $ 600<>00 o55 1 668o50 * 26o96 $ lp296046Second Half 1927 e21 667 o51 o93 10191*24 26028 l»884o98

(4 ioSfffoW # lP869o74 ' W 3 S # mX W T M

Monthly Average $ 105*62 $V 154©98 $ 4,43 1 265o04

First Half 1928 o26 | 600oOO 066 i 749c90 21o04 lp370o94Seoofid Half 1926 o25 600c0O 088 848o60 21067 1^470«17

$ rjswaw riV “% O T a 1 Ml oil

Monthly Average # lOOoOO <?•§ 153*21 e 256o76


FEDERAL RESERVE NOTES RECEIVED AND ISSUED BY AGENT DURING 1927

IN HANDS OF AGENT DECEI3ER 31, 1926 FiT FO?.'USE

FivesTensTwenties Fifties Hundreds Fire Hundreds Thousands

Total ----

FivesTensTwenties Fifties Hundreds Five Hundreds Thousands

NEW117660,0003.240.0002.800.000450.000940.000479.000834.000

# 12,303,000RECEIVED FROM COMPTROLLER

--------m --------# 6,3257000

7,000,0005,760,000

r

635.000450.000441.000433.000

Total----| 19,080,000

330.000430.00012,50064,000

$20,876,600

TOTAL $ 3,660,0003.240.0002.800.0001.085.0001.390.000920.000

1.267.000$14,262,000

'TOTAL RECEIVED#10,886,00015.276.00012.970.000

330.000430.000 12,600 54,000

#39,966,500

FiresTensTwenties Fifties Hundreds Five Hundreds Thousands

NEW6/SS5,0008.720.0006.320.000175.000280.00034,000

Total--- # 21,209,000

ISSUED TO BANK------Firm use

# 'SVaRT.tOT”6,030,0006,880,000275.000600.00060,500

#15,486,500

FivesTensTwentiesFimas Hundreds Five hundreds Thousands

NEW4.255.0001.520.0002.240.000 276,000 660,000479.000800.000

IN HANDS OF AGENT DECEMBER 31, 1927

Total----# 10,174,000

u r m w# "■ ■SIF7&W3.245.0001.330.000690.000280.000403.000487.000

# 7,350,000RATIO OF ISSUE BY DENOMINATIONS 1920-1927

TOTAL# 9,386,00013.750.00012.200.000

450.000880.00050,60034,000

$36,694,500

TOTAL# 571X570004.765.0003.670.000965.000940.000882.000

1.287.000#17,524,000

1927 ■ "t o t T O ” .T O H I T " 1921 1920Fives §6.f# 31.8* i r a ■50#Tens 37 06 29.1 27.3 27.1 31.9 33.2 31.4 33.2Twenties 33 o3 33.3 30.9 29o3 32.8 29 04 28.2 33«8Fifties lo2 2.4 4.7 303 2 01 1 .0 1.3 lc4%adrrts 204 3o6 4o7 6 .6 3.2 lo7 2.4 2.4five Hundreds ol .2 .8 1.4 .5 ol .4 o2Thousands .1 06 lo7 I06 __.B .4 1 .0 1 .8

IW M 100 c'C lTR3TrC£ 1 5 0 ^ 15570^ XOO o0%


m m m L m m m hotxs isssm A m m & m m m s u m oiqahizatiotm i m

JanuaryTebroaryMarchAprilJune M y Angast September Qetoter Hovember Deceraber Sbtal for

Tear

febraaryMnrtitAprilMayJimJtrtyAOgOStSeptemberOctoberIfevemberDecember

X.3«M >003.2*»,0003 .3 6 0 . 0 0 0

2, 875*0001.600.000 1.200.000 3 ,1 3 0 , 0 0 0

3.420.0008 .1 3 5 . 0 0 0

4.435.0002.595.000

iLMg.Qfig

$ 4 .6 1 7 .3 9 5 .3.297.800.3. 1*0 .335.3.263.090.3.030, 695.3 ,1 1 2 2,2 6 5 .3.2©».555-3.517.300.2,416,000.3 .3 1 0 ,3 5 0 .3,0 1 1,100. ♦Ho,766,785.

1 .1 .925.0001.975.0002.705.0002.165.0002.580.000 3.Z30.0004.330.0005 .7 8 5 . 0 0 0

5 .6 7 0 . 0 0 0

2 .6 7 0 . 0 0 0

4.920.000

*3 9 .4 5 0 ,0 0 0 . $3 9 ,2 6 5 ,0 0 0 ,

$ 4,186,900. 3,268,250.3.839.300. 4,556,620.4.332.100.>♦,729.950.4,050,610.4.353.300.4.195.100. 4.387.*50.4.010 .100 .

$49,748,580.

% 1.910,000.2.090.000.3.505.000.2.705.000. 2^ 5,000.3 .1 2 5 .0 0 0 .3.465.000.3.140.000.5.645.000.6.420.000. 2 .777. 50C. 6.102.500.

2 ,1 5 0 ,0 0 0 .2.370.000.2. 665.000. 2 , 647, 500. 1.5P.000.3 .9 ^ , 5 0 0 .3,880,000.3 .3 N0 .0 0 0 .2 .5 9 5 .0 0 0 .3 .3 10.000. U,210,000, 7.*i40.000.

M24 $ 1,790,000

7,250,000 2 ,270,000 2,030,000

10,910,000 2,195,000 3,115,000 2,265,0004. 680.0007.025.0003.910.000 4.^95.000

132^1,765,000.3.335.000.2.415.000.1.690.000.2.175. 500.4.175.000.3.320.000.3.285.000.7.625.000.3.750.000.4.790.000. 5.620.000-

1926905,000.

2,170,000.3.435.000.5.300.000.1.690.000.6.145.000.5. 735.000.1.065.000. 5.661,500.4.690.000.5.240.000. 4.66q .500.

#43,360,000,

4,950.350.4 ,144,050.3,251,000.3.236.000. 2,905,400. 1.939.800. 1,620,700. 1,724,100. 1,993, 600. 2,084,700.2.606.000. g .32g.,680

I8sued Issued Issued Issued Issued Issued

321mSm

in 191 in 1915 in 1916 in 19X7 in 1918 in 1919

2609000o 13 Jk?,000o9,980,00Go

^2,230,000. 57,x5o,ooo0 39,990,000.

fXxe9,8oo 2 , 0 2,5000 2 ,XT0 s000o 2 ,208,200* 3 ,503.000.1,gT2 .S00o X,803, 500o X*937.600oX,612,200o2 ,3 5 6 ,1 10 0.2,X22,330c

AT fASHTNffjftff2, ^ 3, ^ 0* 1,808,5000 1 ,906,300o 2 ,21*0 ,200* 3,083,300c2,363,00002,606,800.2 ,1 2 1,600o 2 ,7 2 ,700. 2 ,X06,600o 2 ,120, 695- g ,a 0a2SP»

$ 2 ,083,600c 1,367,500.2,520,700c 1 ,899, 600. 2,28X,?00c 2,623,^00c 2,500,700. 2,^51,200, 2,883,700. 3.168,900,2,337**00. SjftSLgS,

3,081,900o 2,266,500o 3,005,2000 2,821,100. 2,177,600o 2»927,300„2,70b,200o2, 99,600.2,836,100.2,927,000.2,0^,700., i . . ^ , 7y t

Destroyed in 1916 Destroyed in I917 Destroyed in 19X8 Destroyed in 1919

$ 295.955-

36*77118 0 5*

1927$ 1 ,490,000-.

1. 410.000.2.220.000. 3, 7o4,ooo„1.170.000. 2,865,500.4 .950.000.1.215.000.4 .800.000.5.715.000.3.330.000.1 . 825.000.

$40,205,000. $51,835,000. $43,885,500. $46,702,000. $36,694,500,

$ 2 . 849, 400.2 .283.300.2,197.885.1.990.650.1 .927.300.1,829,050.1,465,150.1.960,500.1,792,850.1. 442.000. 2,580,250.1 .6 5 2 .0 0 0 .

$32,784,320. $ 27, 320, 330- $28,173,395. 130.108,355- $31,835,950. $23,970,335

05


ISSUE, REISSUE AND DESTRUCTION OF FEDERAL RESERVE NOTES SINCE _________ OPENING OF BAUlt AS OF PECEMB R 31, 1927._________

FiT68TensTwenties Fifties Hundreds Five Hundreds Thousands

Total .

FiresTensTwentiesFiftiesHundredsFire HundredsThousands

Total . .

Fires $TensTwenties Fifties Hundreds Fire Hundreds Thousands

Total . .1

FiresTensTwenties Fifties Hundreds Five Hundreds Thousands

Total . -

Received from Controller

$ 134,580,000129.640.000118.800.0007.200.00010,400,0001.800.0002,800,000

$ 405,226,600

Returned by Bank To Agent

I 22,412,00040.095.00041.736.0003.895.0005.480.0001.044.0002.922.000

Total156.992.000169.738.000160.535.00011.095.00015.880.0002.844.0005.722.000

saai'gffgRr

ISSUED TO BAMXNew

130.380.000128.120.000 116,560,0006.925.0009.740.0001.321.000 2,000,000

SS6.oi8.BW

Fit for UseI 21,497,00036.850.00040.405.0003.205.0005.200.000641,000

2.455.000

Total$ 151,877,000164.970.000156.965.00010.130.00014.940.0001.962.0004.435.000

» «6S «S 6o6

DESTROYED AT WASHINGTONReturned By Agent

4#260,0002.545.0001.020.000

25.00030.000noneii

<7,880,000

Returned by Treasurer

$ 3,803,255 4,324,2702,503,600 198,900 278,50026,50053,000

TH7T88,025In hands of

Agent December 31,1927$ 5,115,0004.765.0003.570.000965.000940.000082.000

1.287.000 lf,"5247000

Returned by Minneapolis

$ 55,698,50046,330,00033,553,5002.194.0002.939.000290.000570.000

$141,573,666

Returned by Other F.R.Bks. Total

$ 52,638,180 52,289,240 50,341,300 1,993,200 2,447,500 162,000 271 000

I 116,399,935 105,488,510 87,418,400 4,411,1005,695,000478,500 894x000

$160,142,420 i 320,785,445In CirculationDecember 31, 1927$ 13,065,065 19,386,490 27,811,600 1,823,900 3,765,000 439,500 ol9,000

Fee; 9io“ 555


fiscal agsrct mottos

the Fiscal Af,««icy operated by uc for Vniti.l Stetvs ftov rnaeszt showed a general expansion in its ssrriee dMring 1927 r.ifcb t’:£ o~co?;tion of Governaont cordon ryiU&ytions lyiioh nr-.- '.iAndled in another -'rwartsient end will be oow*<entod upon elsewhere in this Bopori*

Other operations con si stint: of is-sues, red«»r:>vions or exohanp.es * of various Governa».v.t s*.o»;ritlec, includi.*.?; treasury aavi*..<;* Seourities, re* doomed at tbis oi‘f ioo, or reeoived from ?©3t»casters after r^eKptiQn hy them, umbering 17fc,91S piooos and amounted to C170,«52.822,50 as compared with 85,568 pisces amounting to $80,771,000 in 1926. Included in the fig* ures for 1927 arc. tfco ?ooond liberty Loan Ronds which vvrc called for re* demotion on Sovdnther 15* Of these, 24,839 pieces totaling ;'SG,199,6oO submitted in 8,7F.5 applications, were exchanged for other issues offered by the Government prior to Hovesiber 15* the greater pert of the <*'eonds, mafcsring 69,899 in ooupon form, amounting to #14,679,250 and 17,989 in

♦registered form amounting to $4,986,850 were submitted in 11,851 applications for redewption*

In June, the treasury Department Made publio announcement of its willingness to purohase Second Liberty Loan bonds direct from individual holders* thirteen proposals from holders in this district offering $19,550 of this issue at not exceeding 100 1 0 2 v*cre finally accepted and gaid for* Again in October and Bovenher additional imrohases anountin& to >1,173,500 submitted in 409 applications were *»ade at prioes not exceeding 100 0 2 *

the Agency also handled during 1927, 5,287 orders for the pur* . ohase of Government seourities and 6,971 resales of Government securities .totaling $92,746,110* Zn addition, either delivery or parent, or both, washandlcd for banks and trust eos^anies on 888 transactions in Govern* ment seourities amounting to $88,685,050* there were also 897 transao* tions of miscellaneous general market securities agrxesating $8,928,000* Altogether, of these various transactions, there were 18,788 totaling #165,*220,160 as compared with 10,905 transactions totaling 3129,682,200 in 1926, or an increase of 2QC over 192ft in the muriber of transactions

9$Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Xnolut?ir»$ a' ort term Government securities ahioh rare trans- for red by /.drci, deliverer of 38,308 pieces totaling ^0,432,060 vms r<ade

on nira.aae and res&la transactions for other than our own account as compared srtth 32,277 ces totaling un/,0*-?,350 in 1U26. In addition, on exchange transaction: such as denoitiir-ational exchange, t e exchange of coupon for r<2.istereo securities, etc0, 30,999 pieces vrere delivered

a&ountinr, to $23,961,550*This A{v?vicy assisted in th& allot-*mt of ei*:V«t r-ri ri. r:s of

United States 0oT*i*rn;r.«n4 leaves dnrin£ 1 cZ ? as con -aref! *.it« three

offerings during the preceding; year. In such operations - rinf: 1927, 16,572 individual subscriptions contained in 4,16(5 different applica

tions wers received. *!.‘e amount allotted on these subscriptions was

1,578,100. During 1926, 7,950 individual subscription* contained in 492 applications rerc i\x»eivand *231,700 «as allotted.

handled*

JV7Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The operations of our branch are covered in a separate report hut as comparisons with 1926 are made only in a few instances p acme oomaent from Head Office Controller is perhaps desirable. There has been no regular auditor at Helena since July 1„ 1928 when l'r* Zimmerman was appointed Cashiero The daily checks since that date have been made by the Cashier and Mro Cutlerp Assistant Cashierr with some assistance from the Discount Cl eric o This arrangement for an interne 1 check has been sati£ factory and should continue so on the present volume of work® This internal oheek is

augmented by tvro examinations yearly by Head Office Controller and one examination by the Fed eral Heserve Examiners * On November 12 an examination was m&de by your Controller and a satisfactory report given0 The element of safety was given special consideration v/ith the result that additional pra> teotion was thrown around the building by improvement of the night guarding and grilles are to be plaoed over the windows o Money shipments have been conveyed in automobiles owned by the officers and an armoured truck is now being constructed for this purpose0

At the present time the Cheek Collection, Currency and Securities Functions are the only ones required to any extent by the Montana banks®Volume of discounts is almost nil0 the total advance being $210154.15 oa December 51 1927 and represented accomodation to one baafco Total earn-

lags for the year amounted to $100539*9? 0 Forty-five banks were accommodated during the year through the discounting of lc,664 notes amounting to $l0905P000r With the exception of earnings from discounts and reserve deficiency penalties income is limited as the branoh has no authority tg deal in acceptances or limited States securities which are the chief sources of revenue at Minneapolis -

Current expenses were $91-,608 010 and $6r?00 less than the total for 1920« No proportion of the note printing costp expenses of the Federal Reserve Board or any part of the closed bank expense attributed to Montana banks is borne at Helena. The Branch officers have made an earnest effort to reduce expenses during the past yearp but it is doubtful if any re

duotitti can be shown in the 1928 payroll after making the January Jiaoreases • Practically every itsa in the expense olasaifioatioa for 192?

HBLEHA BRAIOH


shows a lower total than in 1926* Travel ir<s expense is approximately 1^000 greater than in 1926 due to more frequent attendance at the various district group meetings. Tax rates have been advanced but no higher valua

tion has been placed on the property. The Branch paid !; 1,893.05 taxes in

1927 and $1,713*11 in 1926. Oost of directors9 meetings has been redueed because of fewer meetings and the fact that a Helena nan replaced one of the distant directors* Printing and stationery expense has been lowered 25 par cent from 1926 costs, although partly on account of reduced requirements. Since November ve have been able to bring about a change in the classifica

tion of the Brandi dailj balance wire to Minneapolis, which vill result in lowering the Branch 1928 wire costs approximately f1,000.

Collection of non-cash items vsas heavier for city items but showed a decrease in country items. She number of city collections averages about 200 per month and the total collected in 1927 amounted to £2,143,000. In

1926 collections made amounted to $857,000 and consisted of 1,999 items. Country items collected in 1927 numbered 13,967 for *5,438,000 and 1,237 items amountine to =*280,000 were returned. In 1926, 15,556 items were oollected amounting to '*5,571,000 and 1,252 items amounting to .$325,000 were returned.

2be volume of currency received m s considerably less in 1927 than in 1926. Shipments and deliveriee numbering 2,525 were made to member and non-member banks and amounted to 114,417,000. In 1926 these shipments were 2,282 in number and $15,104,000 in amount. Receipts from country and city banks totalled f17,749,000 one year ago, and ? 14,216,000 in 1927. The Branch

had also been carryinc too large a proportion of big bills and $500,000 of 80*s were exchanged for a like amount of 20»s some weeks ago. The Agent does not carry any Federal Be serve Notes at Helena as the supply held in the Branch cash is sufficient. Shipments are made from Minneapolis when requested.

Checks handled in 1927 of country member and non-member banks were 1,828,834 in number and 4140,254,000, in comparison with 1,671,814 checks amounting to t'128,827,000 in 1926. Return items numbered 33>910 in 1927 and 36,986 in 1926.


COmmilVB FOHCTIONAL EXPEUSE REPORT------ HELEHTMAHgfl-------

1927 1926

Average Average Average AverageNumber Number Number NumberOf of of ofOffioers Employees Amount Offioers Employees Amount

Cen'l. Overhead-Controllable 1.00 t 8,960.20 1.00 I 9,057.27Gen'1• Overhaad-Non-Controll&blo 5,591.57 6,301.70Provision of Space (less inoaae

from banking house) •08 2*00 6,679.69 .06 2.00 6,711.50Provision of Personnel .05 •08 753.84 .06 •52 1,510.65General Service •30 8.28 12,915.59 .52 10.56 12,965.88Postage 5,466.59 3,650.63Insurance 5,196.48 5,500.55Failed Banks •04 •04 567.28 .07 556.02Loans, redisoounts and

aooeptances • 25 082 5,418.46 .58 1.04 4,561.58Securities .09 •56 1,601.04 .11 •53 1,292.51Currency and coin • 26 3.02 7,102.54 .28 5.00 7,056.71.Check Collection • 22 9.17 14,546«55 .24 9*64 15,869.22Kon-oash Collection • 17 1.79 5,600.88 .15 1.79 5,757.52Accounting • 10 4.20 14,974.70 o09 4.47 15,610.44Fisoal Ageney - All other .07 120.00 •07 540.44Leg*l 1,800.00 1,826.00Auditing • 54 o20 2,751.42 .67 .17 5,195.64Bank relations 25.70 17.75Bank e*aaination 546.50 512.75Federal Reserve note issues ^ .02 120.94Statistical and Analytioal 157.C7 144.26

GRAM) TOTAL 2.90 30.23 $92,328.26 3.38' 3^.46 JM.We.20total eurrent expense (91,808.10 #97,802.85Total reimbursable expenditures 520.45Stook of Supplies 516.18 47.06#

aRASB TOTAL ■ •• -r 92,323.28 * t97.W6.20

♦Credit


1927 Directors Frb Minneapolis

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Transcript of 1927 Directors Frb Minneapolis