1935 Directors Frb Minneapolis

G O N T K O L L & h 5 si i\ E P O n T

F E D S h A l . jtvVk BAX'IK 0 * a iX N i l i iA P O M S

j?wn THil X E A k

1 9 3 5.

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

To the Directors *

Through the presentation of the following tables

and schedules,, with the accompanying commentsf we have en

deavored to fully inform the Directors of our operations of

the past year and indicate to some extent the probable trend

of 1936 income and expense.

Toward the close of 1935 there w& b a material re

duction in the performance of fiscal services and some other

functions of the Bank:, Offsetting cart of this curtailment

of work was the increase oi Transit operations, more work re

lief checks handled, and expansion of currency and safekeeping

functions* At Minneapolis the last named service was increased

through the transfer of all negotiable securities from Helena

due to the earthquake trouble*

Our revenues in 1935 were sufficient for normal re

quirements but this will not be true in 1936 unless the volume

of Governments owned is increased or the average earning rate

improves, Payment of past due interest by closed banks and the

recovery of expense in connection with collections at closed

banks will be only a small part of the amount obtained in 1935.

The income and expense and distribution of the excess for the

past year, is fully explained elsewhere in this report,

All audits of Head Office functions and two examina

tions at Helena during the year indicate the work has been

efficiently handled and th.at our records reflect the true con-

dition*

respectfully submitted,

Control lerc.

January 1, 1938*


I I I D £ X

Auditing

Bank Examination Deoartment-»

Bank and Publ i c he 1 a ti on s •..«

Bank Premises!Minneapolis "building Helena building <Costs, charge--ofis, reserve and book value Comments

Cafeteria c o o o a o . « e e o o j 4 o . » o e - » . « - ® » o 6 »

Check Collectione « Transit department

Cloped Banks »«»• . *c . „. . . ..

Collateral

Collec tions - Kon-Caeh ««............. .........

Currency and Coin^ommen & s <■«>» c««oca«ooo»»«oo»«*»«.««e!>»o»«»6« dumber and amount of shipments received and sent

vU s t od i e s

Deficient reserve Penalties >« 9 * ..........

Discounts Comments RatesStatement of operations

O •? »> n A •> •* > 43 © a V O <C

Dividends paid since organisation

Earning?Comparative statement 1935~1933 , Average rates on earning assets . Comments 0 O 9 > 3

expensesComparative statement 1935~1S33 . . . . . . . . .Comparative statement of Miscellaneous Expenses »Comments ................ ......................... ......................reimbursable Expenditures . . . . . . . . . . . . . . . . . . . . . . . .

Failed Banks «

federal reserve Agent£ s functions Bank Examinations « * . . . ............

federal Heserve $otes Comments i.tatisties

fiscal Agency Unctions ........................

franchise Tax paid since organization

^ *7 'J

79-84

78

454347-4849-52

39

57-53

55-= 58

64

S3

5566

64

74

53 18 5 4

> a <* * o t»

17IS19-33

242536-4143

55~5S

79-84

67—5839-71

85-91

7


furniture and equipment .............. . , . 43-44

Helena BranchBank I-remxees 4Sf 48

Investments 33*33

Leased Wi re .................. . . . . . . . . . ............. ...75

Liabilities* Comparative Statements 1935-1934 3

Member BanksKeeerve Balances 74Changes in membership * . . . a . . . . . . . . . . . . . . . . , 83-85

I SL 2. s. £ (Oontd)

Non-Cash Collections . . . . . . . . . . . ........ . . ........... ............ '. 83-

Pro fit and LossStatement in detail for year 1935 s. * 0 «.«. > . . . • *. < 3Summary reoort for /ear 1935 .......... ........4~6Dividends> franchise tax • 7Surolus • .............. . 8Cotnmen t s . ». ..................... . . »................» 9-16

Reconstruction finance Corporation . . 90-81

Reimbursable Expenditures .................... ..... 42

Reserve Position 73-73

itesources* Comparative Statement 1935-34 . . . . . . . . . . . 1

becuritiesbafekeeoing 64Investments held t . . . . . . . . . . . ........ , „ 23-33

burplusDetail statement since organization 8

Xaxe s ............................ . . . . . . . ................. . 33

Telegraph . ................ ............. .......75

Transfer of fundsComments . . « * . , . . ........ . . . . . . . . . . . ................................. ......75

Transit JunctionsComments * .»........................ .. . * ........... . . . 57-,59

Statistics ................................................... 60-63


FBDERAL BESEBVB BAM OF AND HELKKA BRANCH(After closing entries)

December 31.1935 December 31t1934

Cash Reserves*Gold certificates with ?. H» Agent oc«eotRedemption i'und * F. H* Botes ...................Inter«<5istrict settlement fund. . . . ...........

Total gold certificate reserves

Other cash . ... ..................................

Total cash reserves .................................

Bills and Securities?Bills secured by-Uc Ss Government obliga

tions.- direct and/or fully guaranteed*.. Bills otherwise secured and unsecuredBills bought in open market .....................Industrial advances . ...................... ...........U, So Government securities ...............Other securities .....................................Foreign loans on g o ld .................................

Total bills and securities ....................

Due from Foreign banks . . . . . . . . ......... .F«B.Notes of other federal Reserve Banks

Uncollected Items*?Transit items . . ...........................................Exchanges for clearing house . » ................Other cash items » . . . . .........................

$ 106,5006000c00 $ 110,000,000,00 539,753,55 389,647.55

30 ,244,532,53 29,798,106 c 80

$ 137*284,286018 $ 140,127,953c35

8,228,657*76 IX ,341,300,98

$ 145,512,943.94 $ 151,469,264„33

33,478,3861,006c52 80,517a29

1,569,566,13 1,752,437.7775,567,939.07 65,589 *395.01

-XL

8,400.00

$ 77,260,390.10 $ 67,422,350fr0?

2,971.18 6,216,251 , 248 , 000o 00 1,128,000.00

14,663,848,80 368,202033

1,038,842.62

10e989,14?0 73396,527.16 603,543* 51

Total uncollected items » .......................... $ 16,070,893*75 $ 11,989,218.40

Federal Deposit Insurance Corporation Stock $ 3,509,467*65 $ 3,509,467,65Bank premises-Less depreciation reserves.Co« 1,631,075.57 1,579,992*96

Miscellaneous Assets:Premium on securities * ................................. 10,659*81 11,792*73Interest accrued ............................................ 78,016.21 68,890o31Reimbursable expenditures ............................ 19,284.61 19.122=65Deferred charges ............................................ 22,087e45 15,131*66Claims recoverable ...................... ................. 286(754089 654,389^06

All other resources ...................................... 11,428.65 1,455.07

r!‘otal miscellaneous assets .................. $ 427,231.62 $ 77G,781o48

TOTAL HESOTJROSS . $ 245,562,973,81 $ 237,875,281.14


comp a r e m , s m a r of l ia b il it ie s

FEDERAL RESERVE BASK OF MIWIffia.K>LlS AND HELENA BKaMCK (After closing entries)

Ytecember 31*1935 December 31,1924

?, R5 notes in actual circulation. * ........... $ 110,562,515#00 $ 106,687,285,.00

U, 5, Treasurer - General account ........... , 3»154,902o63 2,589,743*50Members reserve account ......... . — . 96,228.,074.84 97,421,436*96Dae to foreign banks «................................... 693,479*13 441,227n 85Officers0 checks*P.H.drafts,Other deposits 7,057,053,,58 6,2SS,437..92

Total deposits ....................................... $ 167,138,516718 $ 106,720,846,23'*

Deferred Availability Items?government transit items ................ $ 579,826«10 $ 409,729,87All other transit items ............................ 14,933,355*71 11,726,311.60

Total deferred availability items «. . . $ 15, 513, 178, 81 $ 12* 136,,041, 47

Miscellaneous Liabilities!Accrued taxes unpaid * ............................... $ 78, 895, 00 $ 81,,360, 00.Reserve for sundry excenses ................... 58, &8oo87 944 465Discount on securities ... ........................ 1*079, 46 5,> o«50 *35Unearned discount « • ................................. 644 v78 -

All other ................................................... 49, 376, 75 218,,008. 93

Total miscellaneous liabilities .......... $ 188, 684. 86 $ 305,, 643, 93

$ 2, 998, 650, 00 t 3, 133,,700, CO3* 148, 502. 93 3, 419,,964, 02

Surplus Fund - Section 15 f,B“ «.*................. 1, 002, 914, 21 750,,977. 4?Subscription for Fed*Deposit Insc.CorpsStock 3, 509, 467 „65 3, 509,,46? j65Reserve for self insurance ................ 515, 379. 97 515,,379, 97Heeerve for losses not elsewhere provided for 663, 002 c20 636,,0Q5e40Reserve for prior service liability under

332, 163*00

TOTAL LIABILITIES * ................................. $ 245, 562, 973, 81 $ 237, 875,,281, 14


STATSMBFi1 OF PROTO AND LOSS XGCGmVT FOR 1935

learnings fronu „ , *Discounted bills - Minneapolis . . . . . . . . . . . . . . . . . . . . .o. . . $ $ 1,006.34Foreign loans wrgatt' . ..... .......... . . . ..-..; a ........ 22 84Discounted bills - Helena Branch ........................... ............ 10 32Purchased bills . ........... ......................................................... 587.ilIndustrial advances .......................................... . ........... 116,167:00Commitments to make industrial advances . . ........................ 984,3?United States Government direct obligations*

Participation in TMUSystem special investment account 1*044,197.85Bank"s investment account . . ............................................. 229*701,85Investments for self-insurance fund ............................. . 15*936,45Temporary investments ..................................................... 2,364*35

Deficient reserve penalties-Minneapolis c*........................ 313 2?Deficient reserve penalties~Helena Branch ........................ 80,92Income from banking house .................... . .............................. 1 ,,45131Interest on past due paper of closed banks 42,779-31Sale of waste paper ................................................................ 90,16Service chargee on collection items returned unpaid . . . . 51,0?Monthly letters sold , « ................ . ................... ................... 6.00Clearing house fines .............. . ............................................. 20*00Rental of furniture and equipment . . . . . . . . . ...................... 15? <-05

Total current earnings ........................................................... $ 1,455*8??.!?

Additions to current earningss

Profit on sale of UeS* Government securities?

From participation in F.R,System special inv, accountFrom our own investment account « ....................................

Recoveries of expense in connection with closed banks .. Difference between amount allowed member banks and amount

recovered on uncurrent and mutilated coin ..................Recoveries on transit items previously charged off . . . . . Proceeds of sale of other real estate~atherwise acquired Proceeds of sale of mechanical stoker at Helena Branch .Exchange profit on sale of Sterling and Francs ...............Reimbursement of express charges on shipments of gold and

gold certificates received during period March 9 toApril 4» 1933 .......................................................................

Withdrawn from reserve for other losses account of adjustment of reserve for losses on Hungarian credits * .......

Kxpenses*Cost of Federal Reserve currency Other current expense-Minneapolis * ..Other current expense~Kelena Branch «

Total current expenses ............................

Other deductions*Furniture and equipment*Minneapolis »..Furniture and equipment^Helena Branch »

Reserves for depreciation on bank premises?Minneapolis building (2# of estimated replacement cost) Helena Branch building (2% of estimated replacement cost Helena Branch building (account of earthquake damage)Fixed machinery and equipment-Minneapolis ....................

Assessment for building for Board of Governors of theFederal Reserve System « ................................................... .

Counterfeits and discount on foreign currency«Minneapolis Counterfeits and discount on foreign currency«Helena . Coupons received for collection, lost after receipt by

collection department ........................................................Lose in connection with purchase of bonds for member

bank because of error in complying with instructions « Loss on account of missing coupon from bond which was

forwarded to the Treasury Department for redemption . .Net expenee»other real estate-otherwise acquired ...........Difference account « Minneapolis . ......................................Difference account * Helena Branch .....................................Loss on Industrial advance ................................................. .Interest paid Secretary of Treasury on amount of funds

received Section 13B * . . ........................... .'..............Dividends paid .............................................................. .

Reserve for prior service liability under Retirement

System . ....... ......... ..............................................................Withdrawn from Surplus (Section ?)

$

13,464.16 1s630;40

25,665,632,700,00

20,000,00551.76

24,403,41 427o5?100,00

9 c 00

44,86

1 *?6 774 99 177,56

1,286.66

16,953:49 1«5,448,45

o p \

2 21

332,168 *,00.___________________ 2?1, 4tn, 091,918,760-06 $ 1*918,760,06

56,571,511*128,990,38

107.488,481,293,050,37

$ 145,765=121,444.76

32,826,73

198,2552,18

1,834 .28100,00

5,30?068

2,480 39

389,70


FEDERAL RSSSRVB BANK 0? MIMMBAPOLIS

PROFIT AND LOSS STATEMENT FOR 19? 5

Head HelenaTotal Office Branch

Earnings $ 1,455,877.17 $ 1*455,785*93 $ 91.24Current expenses 1,£93,050,37 1.185.561,89 107. 488:48

Current net earnings $ 168.826,80 $ 270,224,04 $-107.397,24

Additions to current net earnings?Withdrawn from reserve for losses

(Schedule «DM) $ 389 070 $ 389.70 $ 0Profit on United States Government .

securities sold - Net 148,209 .,88 148 f, 209 r, 88 0All other (Schedule “A*) 42„800j01 42,700c01 100,00

Total additions $ 191.399,59 S 191,299»59 $ 100,00

Deductions from current net earnings?Bank premises * depreciation

(Schedule «CM) $ 48*917,39 $ 26,217*39 $ 22, 700 00Furniture and equipment 15,094,56 13*464*16 X, 630,40Reserve for losses (Schedule "D") 0 0 0Reserve for self-insurance

(Schedule «D“) 0 0 0Reserve for prior service liability

under Retirement System(Schedule »*D") 332p168,00 332,168,00 0

All other (Schedule *'Bw) 2?„225,59 27.127,80 97179$ 433,405,64 $ 398,977,36 $ 34,426 19

Net deductions from current netearnings | 232.005,95 $ 207.677o76 * 24.328 19

Ket earnings $ - 69^179=15 $ t 62.546,28 $-131,725:43

Dividends paid & 185,448:45 Payment to Secretary of Treasury

(Section 13b) 16,853,49 Trensferred to (•*>) or withdrawn from(-) surplus (Section 13b) 0Withdrawn from surplus (Section 7) 271,481 <> 09


?£DEHA1. HE SERVE BANK OF MIKflSAPQLlS

PH0?I? AND LOSS STATEMENT FOR 1935,

Schedule HA*' - “All other" additions to current wet earnings

TotalHeadOffice

HelenaBranch

Recoveries of expenses in connection with closed banKS $ 32r 826-73 t 32.826,73 $ 0

Bifference between amount allowed member bankrs and amount recovered on un* current end mutilated coins 198 ,.25 198*25 0

Recoveries on transit items previously charged off 52,18 52 o 18 0

Proceeds of gale of other real estate** otherwise acqfaired 1,834,28 1 e 834 28 0

Proceeds of sale of mechanical coal stoker at Helena Branch 100,00 0 100.00

Exchange profit on sale of Sterling and Francs 6,307.68 5*307.68 0

Reimbursement of express charges on ship* m ent3 of gold and gold certificates received during period Warch 9 to April 4, 19*33 2,460.89 2.480,89 0

$ 42, 800»01 & 42,700-01 $

oooor-i

Schedule "B11 - “All other11 deductions from current net earnings

.Total

HeadOffice

HelenaBranch

Assessment for building for Board of Governorsof the Federal Reserve System & 24,403,41 $ 24,403.41 t 0

Counterfeits and discount on foreign currency 527,57 42? e57 100-00

Coupons received for collection, lost after receipt by ©oliestion department 9,00 9,00 0

Loss in connection with purchase of bonds for member bank because of error in complying with instructions 44,86 44c 86 0

Loss on account of missing coupon from bond ??hich was forwarded to the Treasury Department for redemption 1,75 1,?5 0

Ket expense other real estate-otherwise acquired 774,99 774,99 0

Difference account 175,35 - 177,56 * 2.21

Loss on Industrial Advance 1,288*66 1,288,66 0

$ 271225»59 $ 27,127.80 $ 97,79

5Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK OF MINNEAPOLIS

PROFIT AHD LOSS STATSMMT Ftift 1935.

Schedule uCfl => .Bank Premises »» Depreciation

TotalHeadOffice

HelenaBranch

<sC jBook value at beginning of year Debits during year

Zo Book value at end of year before closing entries

4 e Credit to depreciation reserve 5a Book value after closing entries

BANK BUILDING

$ 1*069,506,46 $ 1,026,625,20 $ 42,881,260 0 0

& 1,069,506,46 $ 1.026t625,20 $ 42,881,26

48.365:63 25.665,63 22.700,00* $ 1.021,140,83 $ 1,000,959,57 $ 20.181:26

FIXSD MACHINERY AND EQUIPMENT

I p Book value at beginning of year $ 4,965.: 84 $ 4,965.84 $ 0

2> Debits during year 0 0 0

3, Credits during year 0 0 0

4, Book value at end of year before closing entries $ 4,965.84 $ 4,965,84 0

5, Credit to depreciation resex-ve 551.;76 551c76 06* Book value after closing entries $ 4.414,08 $ 4,414.08 0

41 Includes $208000 account of earthquake damage,

Schedule MD“ ~ Reserves*

1. Reserves* at beginning of year (ItemTOOK on daily balance sheet, for® 34) $ 1*211.,,385= 3?

2* Debits during year^Reserves fors

Self Insurance $ 0Depreciation on Us S, Government

direct obligations (Transferred to reserve for other losses) 183v396,99

Loss on discounted bills 42,899,42Other losses*account of allowance

granted for prepayment on Hungarian credits • 64,08

Withdrawn from reserves for other losses account of adjustment of reserves for losses on Hungarian credits 389070

Total debits $226,750,19

3* Credits during year*Reserves for?

Self Insurance 0Depreciation on IT, S. Government direct

obligations 0Losses on discounted bills?

(a) Recoveries 350,00(b) Other 0

Other losses and contingencies 183,396-99 Prior service liability under Retire^

ment System 332,168,00Total credits $515*914*99

4 a Net credit $ 289,164.80

5, Reserves* after closing entries (ItemTOOK on daily balance sheet, form 34) $ 1,500,550 1?

•STS

*Gther then for depreciation on “Fixed machinery and

equipment” and Bank buildings (including vaults)*


December December June 20, December December

DecemberDecemberDecemberDecemberDecemberDecemberDecemberDecemberDecemberDecemberDecember

DIVIDENDS PAID SINCE ORGANIZATION - BY YEARS

1916 $ 5? , 719,8?1917 363,894o191918 168,102*9?1919 «=* 180,106.211930 « 195,870,651921 211f,65?o031922 213,774*011923 212r 732 = 681924 - 202,827,981925 - 193,£59,,451926 - 187,609.25192? 180,726o511923 181ff202e861929 184,029P921930 - 184,445*391981 « 180s454c531932 175f494c801935 - 171,568.891934 «3 iei.ii?„5i1935 185,448o 45

$ 3-j 8121423,-16

statement of TOTAL franchise tax paid since organization

31, 1916 Transferred from Profit and Lose $ 37p600,0031. 1920 II II It 524,233,581921 i< ii <i 1*284,497,; 6231, 1921 11 II H 1.166,468„98

31. 1922 " on account of underpayment years 1920 and 1921 52.423c36

31, 1922 * from Profit and Loee 512 f. 028 9831, 1923 »• ii ii 101f450,25

31 r 1924 ii it ii 113,646,58

31* 1925 it it ii 379255,0431, 1926 ii ii ii 2341380-91

31, 1927 U II H 103,815*9031 „ 1928 II II II 390,150,58

31, 1929 II II It 549,658.5831, 1930 (1 fl II 8,229,6031, 1961 Ii 11 - It none

31* 1932 (1 II tl 87,158,54

$ 5 ,202 ,898s50


DSTAlL STATEMENT OF SURPLUS SECTION 7 SINCE ORGANIZATION

January 4, 1918 Transferred to Surplus from Profit and LoseDecember 31, 1918 ii it it ti

March 4, 1919 t< from Reserve for Franchise TaxJune 30, 1919 t< to Surplus from Profit and LossDecember 31, 1919 m ii n it

June 30, 1920 it ii ti ii

December 31, 1920 it ii ii ii

June 30, 1921 it n ti it

December cl, 1921 ti ti it tt

December 31. 1922 M n it n

December 31, 1923 It it ii n

December 31, 1924 II ii ti tt

December 31, 1925 II ti it ti

December 31, 1926 II it ti ti

December 31, 1927 It ti ii ti

December 31, 1928 II ii ii ti

December 31, 1923 II it ti ii

December 31, 1930 it ii ti it

December 31, 1931 (1 ii n M

December 31, 1932 II it it n

December 31, 1932 ♦1 to Surplus from Reserve for de«predation on U« Sfc Securities

LeecsDecember 31, 1922 Additional Franchise Tax paid for the years 1920 and 1921 « « « « $ 52.423*36

December 31, 1927 Withdrawn from Surplus to reduce book value of building a , » 0 500,000,00

December 31, 1961 Transferred from Surplus for depreciation on U» 5« Securities • * 653*000,85

December 31, 1931 transferred to Profit £ind Loss e ? o e c t t f t o o c ? & 5 c 8 134,649 o 67

December 31, 1933 Transferred to Profit and Lobs c o « > « o e o o « o 9 o < > » « < ; 69 483 , 63

January 5, 1934 Transferred fro® Surplus for purchase of Federal Deposit Insurance Corporation Stock « „ . . . . « • a « • 3.509-467.65

December 31, 1935 Transferred to Profit and Lose ...................... . 271,481,09

Balance in Surplus»Section 7 JanB 10 1936 » « „ „ < » » •

SURPLUS SECTION 13 »B»

Transferred from Treasury Department for purpose of making Industrial loansOctober 30, 1934 * ..................................... $ 251,936,74November 26e 1934 * <> « * , * 251,936e74December 28, 1934 . . . * .................. * 251,936,74January 9* 1935 « <> ° • . « • » - • « » 251 „ 936, 74

$1,007,746.96

December 31, 1934 Net expense over income on Industrial advances from funds transferred byTreasury Department « ......................& _______ 4,832*75

Net Surplus - Section 13 "B** Jan* 1, 1936 . . • • • • • • $

$ 37,500-00

6885871,82 688*871.82 904,357*40

1,249,399,04 1,609,241.56 1,801,706,54

323,121,95 165,407667 56,892,10 11t272c25 12,627e39 4,139o45

26,042.32 ll,535a10 43,350o06 61,073,18

914,40 nore

9 ,684c28

653,000,85

8,359,0091.2.8

5,210,506,25

3,148.502,93

1,002,914o21


PiiOFJT ABP LOSS

The current income for the year amounted, to

#1<J455#8?70X7 compared to # 1 ,415 ,09So82 in 1934, These totals

represent the ordinary revenues of the bank but do not include

the profit on sales of United ytates securities made from system

Account, exchange profit on foreign transactions or recoveries

of amounts expended in -previous years, .Items of this character

are credited direct to orofit and loss and have considerable

bearing on the final results each yeax, The various profits and

recoveries received during 1S35 aggregated #191,399*59 or nearly

1-lOOjOOO less than in 1S34 ^'hen large recoveries of closed bank

expense and substantial profit from sales of Governments, plus

other minor receipts added .$384 p 584 0 04 to the regular revenues

of the banfc and made gross income # ls700,018,,98,. it will be

noted that gross income in 1935 was $>52*743,33 less than in li^4

because of the reasons above stated.,

On a preceding sheet the various soxirces of current

revenue are listed and these items *?ill be elaborated on else

where in this report under. rt£arnines'1 and all current disburse

ments will be explained under 'Expenses'*, All other additions

and deductions and the distribution of net income m i l be ex

plained in the following- paragraphs*

Xt will be recalled that at the close of 1934 we w?ere

authorized to set aside as an addition to depreciation reserve

the amount of the -profit obtained for the year on sales of

Governments from system account provided we had sufficient income

to provide for all current needs. We actually needed #9.,517 13

additional to cover all requirements and accordingly reduced the

$193,914,.13 received as orofit on Governments, a litce amount,

before adding to the depreciation reserye8 As a matter ol fact,

the 1183,396*99 added to ?,heserve for. depreciation on United

btates securities on .December 31, 1934 *as withdrawn from thir


account by resolution of our o^n Board on April 15, 1935 and

placed in account ’’Reserve for other Losses"* This was to

comply with the wishes of the federal reserve Board,

The profit apportioned to us by New jfork from sales of

Governments in 1S35 amounted to #146*765/13,. From the exchange

of $423,000 of Fourth 4£$ Liberty Loan Bonds held by ourselves

for a like amount of 2£% Treasury Bonds, we also obtained a

orofit of ^ lp444«78» part of these profits were available

for addition to "ueserve for Losses'* because our net earnings

were insufficient to provide for all other charges and the ao«

propriation for orior service liability to the Ketirement system,

Recoveries of expense incurred at closed banks amount

ed to #32,036*73 but was much less than in 1934 when we collected

>74,, 160,06* It should be explained that the amounts of recoveries

placed in profit and lose during 1935, represent expenses Incurred

prior to 1934. Any recoveries of exoenses created in 1934 and

1935 were placed to the credit ot current Sxoense, thus reducing

our current operating costs. These recoveries over the oast few

years have been helpful in enabling us to cover our requirements

and may be expected to be comparatively small in 1936.-,

A profit of $5*307*68 was realized during the year from

the conversion of sterling and i*rancs into dollarsc Of this

profit -$1,313.,10 was the result of lowering the System balance

carried with the Bank of France» As a result of the reduction of

System investments made through Foreign banks, the exchange of

Sterling and francs into our money gave us #3*984,58 of profit

On March 33 the Treasury paid us $2,460*89 as re

imbursement for express charges we had assumed back in 1933 on

gold coin and certificate? sent in under Executive order, le

still have #1^346,66 to collect from the Treasury for abrasion on

gold coin shipped to the Denver Mint by Helena prior to the date

PhOFIT ASH) LOSS (Contd)


PrtOF.lT A m LOSS (Contd)

on which all of our gold coin was called in* The payment has

been approved by the Treasury but has been held up by the dis~

bursing section,

From the sale of property acquired through our claims

at closed banks* we received #3,135.78 from which was deducted

#301c50 for commission and recording of mortgage• In the operation

of our other real estate acquired in the above manner, we had net

expense of $774*99 which includes insurance*, taxes* etc* * the

payment of which was necessary to protect our property*

The transactions previously described are the important

items credited or debited to profit and loss during the year* After

transferring- to profit and loss the #1,455,877*17 of current earn

ings we were able to make provision for the following charges^

cuhharr e x p e l s

Minneapolis $1,185*561*89Helena 107,488*48 #1,293,050*37

Compared to 1934f Minneapolis costs have shown an increase

of ^83p 160c 66 with Helena expenditures ^4,559*55 greater than last

year, At the beginning of 1935 we had estimated a total expense for

the year at Minneapolis of $ l 9174v897„50* This Budget was revised in

July being reduced 11,363*50 and the final result shows we were

^22,027.89 in excess of the estimates, several causes upset our

calculations.. There was a considerable decrease in salaries through

deletions of clerical employees but the prior service liability pay

ments, later determined on9 more than offset the other reductions..

At Helena budget changes were small, the Branch portion of orior

service payments raising the total 16,330*73 over the Budget.,

FUKMXIUhE AND SSUIPiflSNT Minneapolis f 13,464 c 1*6 Helena __1 ,630.40 $ 15,094-56

le are trying to fit the actual yearly outlay of equipment

to the amount approved at the beginning of eacn year* Purchases

at Minneapolis were #837^33 lower than in the previous year

with Helena purchases showing an increase of i>230,98c borne re-

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

PROFIT AND LOSS (Contd)

placements of adding machine equipment will be necessary in 1936

but our needs In this respect have not yet been determined* The

description of all equipment purchased during the past year appears

elsewhere in this reoort*

KfiSEKva tOix DaPKgciATicm ON BANK BUSLPIjNG

Minneapolis * 5 2o'f Q5d»83 Helena 2 g700=00Helena (boecial) 30„OQQ>00 I 48^3850 63

The amount set aside at Minneapolis was the usual 2%

on replacement value of #1^383,381*50 reserved each year since

X325o Total amount held as depreciation reserves on the Minneaoolie

building at the close of the year was $283„331.,93 and gives the

building a net book value oi #1,, 000,959* 57*

The branch building suffered severely from the earth~

q\iaice which began in October? so that a further allowance for

deoreciation was amply justified.. In addition to the regular 13,700

set aside, provision was made for a special allowance of $30*000,

Deoreciation reserves for the Helena building now amount to

|;X14,.818,74 reducing the net booK value to #30*181

hESKh.V£ FQti DEPt\£C IATXQN ON FIXED MOHlH&hi AND SqUIPd&BT

Minneaoolis 5 5^1,78 Helena „___ J>___ _ f 551,76

All of the original cost of fixed machinery and equip

ment, #620,.053*55? had been provided for at the close of 1S34

through the 10& reserve set up each year since 1934* The amount

reserved on December 31f 1S35 was one«tenth of the cost of work

and material needed to construct the steel turrets on the ground

and main banking floors* We hadF for three years* charged the

elevator maintenance contract to the depreciation account, but

during 1835 have charged this to repairs and alterations-.

The deoreciation reserve for machinery and equipment

at Helena has been provided for*


ASs£sa*£ftT buildim jrohBOARD Ob GQViSh&QKS 01 THEijSPfcnAL hjSS&h.VE S*ST&id * #34 9 403.41

This amount was included in our assessment for Board

expenses covering the first half of 1335 and was entered on our

books as an asset item!* Although the uovernors* conference

recommended that the amount at each bank should be charged off in

profit and loss at the close of the year, there was some question

as to this being the correct treatment0 On December 38 we were

advised that the Board oi Governors were of the opinion that this

building should not be carried as an asset by the Federal Reserve

Banks* In 1936 our nortion of this cost will be charged in

Expense*

hESERVg ffOh PftlOh SERVICEllhBl'llVi m o s j t S V & x

,£332,158*00

Through the adoption of the olan by all the Federal re

serve Banks and the Board of Governors to retire nrior service

liability in 5 years from January 1, lS35g the setting aside of

the above amount was made possible* fthile there ^ould be a material

saving in interest by making1 the payment to the Retirement system in

one amount,, the method of making monthly payments over ttie next four

years will be uniform.. Our method of providing for these payments

is somewhat different from the other Banks., a monthly charge will

appear in the expense account for each bank and be transferred with

other expenses to Profit and Loss at the close of each year. In

our ca.se, having set aside the full payment for the four years in

a zeserve account, we will withdraw #6,920 monthly from Reserve

for Prior Service Liability Under retirement bystem'1 and credit to

profit and Loss to offset the like amount included in Expense,

* pa. other lu&se s •M l) OOflTINGEHCIES Debit £ 389.70

Ho additions were made to thip account by transfers from

Profit and Loss at the close of the year, ihe amount shown above

p r o f i t amp Loaa (contd)


represents an adjustment in the $58 ,435 ,00 set aside to caver our

share of exoec ted losses on Hungarian credits,, our participation

in the original credits was on a lower basis than the basis used

in providing a reserve for probable losses* This, when discovered,

permitted a reduction in the reserve and a credit to Profit and

L o s s -

Losses charged to reserves during the year 1834 amount

ed to #42,353,50 of which #42,399*42 represented the losses in

settling claims at closed banks and #64<08 our participation oi al=»

lowance granted lor prepayment on Hungarian credits* recoveries ol

charged-off assets in connection with closed bank claims amounting

to #350 were added to reserves.,

As it was the wish of the federal reserve Board one year »

ago that any profi t on sales of Governments from bystem Account

should be added to "heserve for Other Losses and Contingencies''

rather than be added to "reserve for Depreciation on U* S*.Government

direct obligations" we transferred .*,183,396,.99 in April from the

latter account to the one first stated., Accumulated reserves on

December 31i. 1935 after all adjustments, were as follows*'

toelf-Insurance $ 515,379,9? Depreciation on tr, b* Government direct obligations 303, 196.,03 Losses on Discounted Bills 206*396.36 Other losses and Contingencies 2 4 1 *409,21 Reserve i?or Prior Service Libaility Under re

tirement system 333,168,00

Total p7,S0675^07IT

OuUfU,&ni'£irtt ANj JUOOUfllON *0r&XGM 0r}id~£hci

iiinne&oolie #427 ,5?Helena 100,.00 $ 537,57

These charges are almost entirely for counterfeit bills

which were not detected by our money sorters when running the bills

through the counting machines-. Practically all counterfeits are

caught in our own office when hand-counted by our more experienced

girls, Fnere is no way of avoiding this without a third handling

oi the bills , ■which *woul<1 increase our costs materially

PROFIT AND LOSS (Contd)


PhQJTIT AND LOSS (Con td)

Dli'y&hifiNOE ACCOUNTS

Minneapolis debit #l??o56Helena credit ____ 2,21 net debit $175035

This lose is small when the volume handled is considered,

The Minneapolis portion is mg.de uo as follows;

Debi t CreditGeneral differences I 5" 15.98Transit and Clearing 45.51 Tellers8 differences.net* 239.-05

4 339,05 f 61,49

* On January 4 P 1936 we made recovery of 4100 which

bad been included in tellers * differences charged off at the close

of 1935,

LO&B ON INDUSTRIAL APVAHOS *1,388*68

This loss was incurred in a loan of #3,000 made August

25, 1934 to C. hr Reierson* General Merchant, ijrederic, Wise.,

and no recovery is probable*

INTEiiKbT PAID bfiChETAftJfOb' IH£ IK&AfeUn*___________* 16 ,853 ,49

The participation of the Treasury Department in in

dustrial loans made by us amounts to $1,002 ,914 ,21„ Under the

La^ we must pay 2% interest on these funds if there is sufficient

net orofit remaining after providing- for all expense incurred in

connection with the advances and any determined losses have been

provided for* After oroviding for the above loss and tbe necessary

expense, we reserved $16,853>49 for payment to the Treasury during

January,

DIVIDENDS PAID $ 185,448*45

Payments for 1S35 were $4 ,330 .94 greater than in 1934

and were also in excess of the payments for any other year since

1938., Capital stock holdings of members was $2 ,998 ,650 ,00 on

December 31, 1925s a decrease of #135,050 during the year. The

reason for the greater amount paid in dividends in 1935 was be

cause of the higher average amount ol Capital stock owned b/ our


members during the first half of 1935 compared to the like period

in 1934* This average fell oil during the second half of 1935

compared to the final six months of 1934 with the result that

average Capital stocic held by members was .£3,089*23? in 19-35 and

#3*019,510 in 1S34, ^ince organization we have Paid a total of

.$3,,813*423,18, At the close of the /ear we had 433 National

members and 68 state members, This is a reduction of 38 National

banks and 1 btate hank during 1925,

bUhPLUU A,0caurf DECS^BEn 31, 1535

Surplus beetion ? 4 3 ,148 ,503 ,93 surplus section 13 '*3'* 1,003,814*21 *

After crediting all direct income and additions to earn*

ing-e, in Profit and Loss and making all charges authorized by* the

Board, it was necessary to reduce surplus #371,481.09.

On December 31, 1934 the surplus under section 13 rtBH

was $7 50 s 97 7 c4?, Transfers made by the Treasury for the ourpose

of making industrial advances aggregated ^755,810*23 from which

was deducted £4,832«?5 being the Treasury*s portion of the net

expense over income in connection with these loans* Another

transfer of &251J)S38,.74 was made on -January 9 since which no

change has t&Ken -olace.

p^0j?x;c AfliP LOSS ( Contd)


GQiffA&rma smmsaarc? of &bqss aAHSiH&s

ygJ^BAL KgSBHES BASK 0? iHS)i\?QLIS ASSD K M iL 3BLABGB

Minneapolis Helena Brandi Combined Combined CombinedKAHEIHG S FROH 1935....... _____ - 1935 ____ 1935 ._ 193**_____ 1933

Li scotsnte d Dill 8 o o o » » » » e » « « « « » * » * o# » $ 1,023,13 $ 10.32 $ 1.038.50 $ 15, 839.65 $ 22i .7U0.49jptXT CllaSSd Dills e i a o o o f i o o o e s e e e o c o s O 5ST.11 587.11 3,223.82 37.595.95

0 t> 116,167,00 116,167.00 15,923.59United States government direct obligations • 0 „ . 0 1 ,292,200.50 1 ,292,200.50 1.356,609.66 lsl79.975.iSMunicipal Warrants . • • . • • • • • • • • » • « . . 0

93^.37 935.37S9.05 2 ,226.60

Goasaitaents to nsake industrial advances • • • „ « » 01,212.65313.27

1,551.91

so. 92 395.191 ,451.91

s,016.576 ,577.62 7 ,652.62

Interest received oa past due paper of closed banks * 42, 779.31 te.779.3l 25.559.98 UOj.i50.S5Participation in transactions nith foreign banks • * «

90.16 90.16U.52 U .96

Sale of mste paper# money bags* etc- « 115.70 135.59Service charges on collection items returned unpaid • 51.07 51*07 51.00 123.57

6.00 6*oo5S.0020.00 20. go 29.00

6 36.53Rental of furniture and equipment ........................... O .. . . 15L 05_ 10 up

Total Earningg....................... $ 1^55JS5*93 $ 91*24 $ 1 ^ 55, 877.17 $1.^15*096.82 $ 1 , **97.669. IS


1935193*19331932193119301929

1935193^19331932193119301929

pjgiar Ammas hqldihgs of m m s a assets

Bills Discounted

BillsPurchased

IndustrialAdvances

U. S. Securities

.federal Int. Credit Bank Debentures

'tunic ip ai Warrants

foreign Loans on Gold

Coffinitsents to malic Industrial Advances Total

$ 48,594

531.212 6.267.577

U.933.S01 4,818,935 U,042,859

21,624,673

Billo Eia= counted

$ 69,5235S9.%8

2,936,456 1,W9,4i4 7.607,324 7.270,007 6,328,38?

BillsPurchased

$ 1 ,936,117265,476

$ 72.39S,06465.S03.35758,209,32143,724.65126,761,33022,786,7869.812,359

if 0 0 0

68,904158,671

02,579.658

2,54564,520

152,19797,67134,220

140,326

l,46g14,093

006,2750

28,340

$ 92.56s

IndustrialAdvances

AVERAGE HATS Of EABSOSS ON SAKBXHG ASSISTS

U* S* Se- curities

Federal Int. Municipal Foreign Conmitments toCredit Bank Warrants Loans on make IndustrialDebentures Gold Advance s

0 0 # 1.5590 1.009;:0 3.5005: 1.50<#0 3.500?> 0

2.773# 3.500# 02.598# 3.500;'- 1.77#

0 3-877# 04.783?- 4. 929;; 5 .031$

74,546,335 67.206,121 67.477.s74 57.528,967 39,450,206 34,733,872 40,513.743

Total

2,090#2.942^

3 .53^3 .507S3.500^4. 2655;4.845^

.844#

.547^1.280#3. 961;'1.748?5 2.904#

4. 902#

6.000#6,000s;

1.7®2,046# Z.057,1 2.107# 2.233# 3.280# 3.960#

1,2932.0562.219'2.455^

2.299S.310"I

r

\ 15'

Scif

,TSVC

Discount rate effective January 1, 1922Discount rate lowered January 11, 1922 toDiscount rate lowered August 15r 1922 toDiscount rate lowered October lHc192 toDiscount rate lowered September 13# 1927 toDiscount rate raised February S#l§28 toDiscount rate raised April 25c 192S toDiscount rate raised Ikjy lUf 1929 toDiscount rate lowered February 1930 toDiscount rate lowered April 15* 1930 toDiscount rate lowered September 12, 1930 to

Discount rate lowered March 16* 193UDiscount rate lowered January S8 1935Discount rate lowered May 1 * 1935 2$

&

3I#lei


EAftN&flUS

Earned at Minneaoolis #1,455^785*93Earned at Helena ___ ______ 91,24 $1 ,455 ,877 ,17

With the exception of larger earnings from Industrial

advances* there was very little change in the character of our

earnings from 1934* At the close of 1S34 we had outstanding- in

dustrial loans of $1,752,000* These advances showed small monthly

increases until September* after which they receded with the total

$132,000 less on December 31„ X335 than at the beginning of the

year* The greatest expansion in these loans came during December

1934 so that our total income from industrial loans in 1934 was

only $>15,928*59, and not sufficient to cover the expense of

handling,

Through 1935 our daily average of industrial advances

has been #1,936,000 and the total interest earned #118,167*000

With #934*37 added as commissions on commitments for making ad

vances,, we had total receipts of #117,101*37 which is #101,172*, 78

more than was obtained in 1934 from this source. While the ex-

oense of handling such loans is heavy,, we needed the added revenue

to help cover our current requirements- It is evident that earn

ings of this tyoe will be greatly reduced in 1936.,

The increased income was oartly offset by a reduction

in earnings from holdings of United States securities* In 1934

from average holdings of $65,803,000 we had received interest of

$1,346,609*83* During &arch 1935 and again in June we added

$5,000^000 to our oarticioation in bystem Account with the result

that the amount of our average daily holdings of all Governments

in 1935 was $73,398 000* This amount gave us interest of

# lff293,200v50 or $54,000 less than was obtained in 1934,.

While there was a decrease in the interest obtained

on our own permanent account through the exchange of maturing

Fourth 4£*:s for 2$% Treasury bonds, the big change came in the

rate obtained from holdings in bystem Account., On January 1,1935

our participation amounted to #58,053*500 from which we received


gAJrtJKJUtoS (Con td)

daily earnings of £3*813,3? g at an annual rate of 1,769^, On

January 1, 1938 ê had a participation of #68*053,500 and daily

income of $2p849c.28 at a yearly, rate of 1 &538^0

Without doubt there must toe no further falling off of

rates on Governments if we are to meet our requirements in 1936.

The average rate of l e?85& obtained on these securities in 1935 is

over £ of 1% less than earned in 1934 and the sharpest drop which

has taken place since 1931, for some time our current receiots

have been helped by collections of past due interest on closed

bank obligations and substantial recoveries of expense, but these

items will show a decided drop in 1936*

Collections of past due interest during the past two

years have been #68*239.39 compared to #16,878*15 received from

current discounts for member banks during the same periodc The

past due collections of #42,779,31 in 1935 are also greater than

the amount collected in 1933. Discounts for members averaged only

*48,584 during the oast year, with profit #1,038*50* The discount

rate of 3$ which had nrevailed since ârch 16? 1934 was lowered to

on January 3, 1935, with a further reduction to Z% on i4ay 14*

1935s which is the present rate-*

At the close of 1934 we were able to set aside as re

serve for losses, the major portion of the profit obtained in the

sale of Governments from bystem Account, Nothing was set aside

for this purpose in 1935 and in view of the conditions mentioned

above, it is unlikely such reserves may be added to in 1936, 'Ve

will probably need all extra earnings to cover current require

ments and there is no certainty of any substantial addition to our

profits from bond sales or exchanges with any further narrowing ot

the rate,

Deficient reserve penalties for some /ears have added

but little to our earninge« The total received in 1935 was

4394,19 and this small amount âs mostly the result of overeight

on the part of member banks* Income from banking house of

#1,451.91 is rental charged the federal i?arra aortgsê Corporation


BAftKIflSS (Contd)

for the space used in handling i*ederal Farm mortgage Corporation

bonds* The charge for space at present is $104*16 oer month and

will probably* remain throughout 1933,. Other miscellaneous receipts

aggregate $324*28 and coyer such items as sale of m ste paperf

service charges on returned collections, clearing house fines and

rental of furniture and equipment furnished by us for Fiscal work.

In viet? of the fact that 97$ of our earning assets

in 1935 consisted of Government securities and that 88*76$ of

our total earnings came from this source( the following tables

should be of interest* In 1934 Governments made up 98$ of the

earning assets and furnished 95$ of our income*

The total amount of Governments in System account is

$3,, 233,149,, 000 in which we participate to the extent of 3*06$

or #88f053,500o Maturities of each year and the percentages of

these maturities to the total holdings in system account are as

followsh

Maturing in 1936 &913p183*500 41»0S per centrt ~ «• XS37 352 ,370„ 000 1 1 * 3 5 ' * «* » 1938 317,520,100 14,28 « ••« ’» 193S 350,211,900 11*25 » «•" rt 1940 295 p 414 ? 200 13*29 » «• after 1940 194,449,300 08.75 •• «»

$ 3 7 2 3 3 7 1 4 9 7 0 0 0 100c * «

We have been advised by New York that the market bid

prices over book value of System holdings on December 31p 1935

was $34,805*156*54« Our percentage of this appreciation is

$lj,065?000o00o

Our Permanent holdings which included the Self-

Insurance Keserve amounted to #7,511*650 on December 3 ! F 1935,.

The market value of these Governments is &393y000 in excess of

the book value*


&ARMIMGS (Contd)

Income from District

Discount from members Industrial advanceeCommitments to make Ind. Adv. WarrantsDeficient reserve Penalties Interest on past due paper of

closed banks Income from Banking House miscellaneous

1935

, 1,038*50 $ 1X6,167.00

934 o 37 0

394o19

42*779* 31 l,451o91

324.33

1934

15,638.25 15* 928 <,59

089 a 05

1,212* 65

35,459*98 6 f477o62

314 70

1933

331,740,49003,235,608 ,016 ,57

4 0 ,150c65 7,658., 63

393.16

| 163,089 c, 56 | 65,0X0*84 | 380,086,09

Income from Without District

Discount from Purchased Bills I Interest on U.So securities Foreign Loans on Gold Participation in transactions

with Foreign Banks Mi ecellaneous

587*11 | >0;0

1#292 ,200 * 50 1,34 6 f609„663 f233,82

'609o66 211.40

00

4* 53 36,58

37 ,595 .951 ,179 ,975 .18

0

11.960

f 1 ;392 ,78T ,si $1,350,158 5,38 | l , 217,583.09'

FSDEhAL hSSKKVE SXSTBit HOLDIMGS OF UNITED STATSS jOYERM&EST DIRECT OBLIGATXQMS HELD IN SPECIAL INVESTMENT ACCOUMT

DKCEMBEh 31, 1§35

Treasury bills maturing in 1936

Treasury notes maturing in 1936tt II it " 1937if if “ 1938It ft ii 1939II II ii * 1940

Treasury Bond© June 15, 1940-43 3 3 /8*it a anarch 15, 1941—43 3 3/8 i,1 ii Aug. 1, 1941 3 1/4 ■%ii <t June 15, 1943-47 3 3/81it it Octo 15, 1943-45 3 1/4 %i» it Apr. 15, 1944-46 3 1/4 iit it Sept. 15, 1945-47 2 3/4 %ii it June *5, 1946-48 3 %It it Dec* 1949-52 3 1/BiIt n Mar. 15, 1955-60 2 ? /8 i

504.368.000 $ 504,368,000

408,815,500252.370.000 317,520,100 250,211.900 295 „ 414.200

2.400.0004.500 .000

44 ,428 ,8003,000,000

21.500.000 33,121,20011.750.00040.700.000

2.015 .000 31.034.300

$1 ,524 ,331 ,700

194,449,300

TOTAL $2,233 ,149 ,000


rayjSSTMBBTS HiSLD DffOEkCBKR 1915

y. 5. .Gfeyernsient SecurTitigj?.I&l^ln JjiYsaMenft .Ac.CfrKfi*

MaturityDate

InterestHate

ParValue

1J. s . •Treasury Bonds 191 -195^ k. $ 165,900.n I? tt H 19 019^3 3-3/s 9,l*50.tt 1* It tl 3- 1/4 601*000.u. s. Conversion Bonds 1916- 1S}46 3 3,200.u. s. Conversion Bonds 1917- 19U7 3 111,600.U. s. Panazaa Bonds 1961 3 , 500.u. s. Treasury Bonds 19^1- 19^3 3- 3/s 2,^52,700.tt If «t tt 19^6*19^9 3—i/ S 1 , 706, 000.tf tt ti it 1951-1955 3 3 3 5 *3 0 0 .tt It 0 tt 1955- 19bO e-T/s 713*000.« 1? it it tt 19*45-19*1-7 2 3 / 4 t e * o o o .u. s . Treasury Notes S e r ies D»193s 2% 5 1 1 ,0 0 0

$ 7 , 011, 650.

Uc So Treasury Bonds 1941-1943 3-3/3 % 200*000.M It tt «

. 1 9 4 3 - 1 9 4 5 3-1/4 3 0 ,000.tt It t> 1; 1946-19^9 3-1/8 60, 000.(t It « »

1 9 5 1 - 1 9 5 5 3 140,000,.n II ti ti 1944-1°46 3-1/4 40,000.It It tt tt 1955-1960 2-7/8 10,000.u tt i< it 1945-1947 2-3/4 _ 20.000.

5?otai.............................................. $ _ m m -

Total U. So Securities held in Bank4® own portfolio 7.511.650.U. 3& Securities purchased and sold for account of

member and non-meiaber banks held pending final payment S^JS^.OJ

Participation in Federal Beserve SystemSpecial Investment Account $68,053*500.

\Grand Total U. S. Securities $75*5&7»939*07


GQim^ m z tfXASzmm

ctjjtHHiiri? w m m s of Tm m m ub asssitvs babe qi mikhmpqlis aid ef,uska bramsk

Kismeapolis Helena Branch Combined Combined

_____________________________________ _________________________:-----i22S---------- 1225____________ ____ JB25L_____________ 13 £ L _

Salai’ies*~ Officers . . . . . .................................................. $ 107,^23.45 $ 12,250*72 $ 119,679.17 $ Xi5.32i .63

Clerical.................................................................. 3S6.6?9*50 3^.3*M 3 tel ,026.63 427, 566.23Other employees.................................................... 126,331.9s 12,750.00 i39.6Sl.9S 119, 533.80GontriMtions-Reti resent System . . . . . . . . . 108,£>§9*9 10,311* 0 119,201*74 50,260.OS'

Governors* conferences . ........................................... 61S.55 - 618.55 719.S4Federal lie serve Agent*a conferences . . . . . . . . . . - . 415*70Federal Advisory Council.......................... ... 1 ,617.23 - 1 ,617*23 1,307*62Bireetors* meetings . . . ........................................ 10,335-^9 965.20 ll .3OD.69 7»993«921 n&ustrial Advisory Conaaittee ..................................... 3»315*01 - 3 ,315.OI 1,T?1.27♦Traveling expenses .................................................. 24,36s.35 2,653*99 27,022*34 23,412.52Assessment for Federal Heserve Board expenses « . . . 3^»118,3** 3J4.llS.3H 31.53^.72Legal fees ........................... ... ................... ... llt07S.60 SOD.00 ll,&7S.6o 12,503*80Insurance on currency and security shipments . . . . 6, 832.96 9^2.3^ 7*775*3^ 10,110.70Other insurance ..................................... . . . . . . . 17*974.29 2, 532.56 20,506.85 23,311.44Tuxes on banking house . . . . . . . . . . . . . . . 79*97 73 2 ,100.39 82,079*12 83,698*54Light, heat, pov?er and w ater ................. 18,462.30 1 *531*60 19f993*90 20,321.53Repairs and alterations . . . . . . . . . . . . . . . 6,409.00 568.09 6 ,977*09 ll,f58,89Office and other supplies.................... 12,487.49 l»59s*67 14,086*16 20,215.37Printing and stationery .............. . . . . . . . . . . l6.2S3.65 1.948*27 1S,231*92 22.601.12telephone ........................................... . .................... 6,322.03 979*^2 7 ,301.85 7 ,812.29Telegraph.................... ................... ............................. 9*321*89 3*lo8.21 12, % 0.10 1^ 735.93Postage..................................................... ................. 92,5S2.36 14.143*39 106,725.75 U 5 fb0$.03Bxpress&ge.................... .............................................. 8, 669.9s 1 .200*72 9^870.70 7 ,326.90Miscellaneous....................... ... 38,284.26 2.695.54 4(3,979.80 38,725.07

Total Inclusive of Cost of Currency.................... ^12^996*33 $T6f7W^M TaT^T^fsTfo ' $1,157TlSS^TFederal Reserve crorren<sji

Original cost, including; shipping charges . . . . 51,1^6*94 - 51,146.94 24.137.07Cost of redemption, including shipping charges . . 5*^24*57 - 5,424*57 4 ,S4l.88Tex on ?, H. Bank note circulation.................... ... ~ - «. 9,184.27

Total Current Expenses $1,135,^1789” $107,4SS.¥S ”$1^1937650*37 ^$I,2^T^o7lS"

*Gther- than those connected with Governors* and Agents* conferences and meetings of Directors and Advisory Council.

Combined

— 3933..-.

$ 105,36s. 83367.666.22119.742.22

606.12193.86

1,293.769.532.92

31,306.75is.472.731U.H55.5011,200.1032.3to.H263,313.67 IS,79 .66 1,939.81

17.017.07 18,9<}3.2S 9,785.87

17,0S3M 109,669.7s 11,772.7937.956.50

la ,023,190.26“

77 .959.50 U .2% .37 3,192.57

'$1,11^.693.70


igeaizsp m ozim m om ss imcluxksi) in misobllansqus bxpbkses

Minneapolis Helena Branch Combined Combined Combined

— A235_____________1335__________________________ ...lS3j»..... .................1933

Rental of furniture and equipment................................. . . , . .Sspairs and maintenance of furniture and equipment ....................Outside protection, vault inspection,, etc......................................Outside laundry and cleaning charges* etc* . ...........................Licenses and permits?................................. ... ....................................

Local transporfcation^car fare and taxi hire . ..............................Post office box and postage-raeter r e n t a l .....................................Newspapers,, periodicals* books, binding, etc0 ..............................Collection charges and protest f$os absorbed . . . . . . . . .Clearing house membership dues .................................Supplies furnished member banks . , ................................................Copies of bank examination r e p o r t s ............................. ...Commercial agency credit reports and services . . . . . . . . .Photographs . . . * .......................... ..................................................Msdieal service, supplies and physical examinations . . . . . .Cafeteria net expense . . * - . * .................. ...Sntertainment of bankers and others not in bank*b eraplcy . . . &Bployecs0 education: American Institute of Banking . . . . . .

All other . . . . . . . . . . . ...............Federal fieserve Club . ................................................................. ...Membership dueB and donations:

American Bankers5 Association .................................................State and other bankers’ associations .....................................Credit Men’ s Associations . „ ............................................American Acceptance Council . „ . .................. .........................American Society of Agricultural Sngineers . « » «, . . . . . . Twin City Bank Auditors* conference . . . . . . . . . . . .Tax Payers' Association . „ . ...............Minneapolis Police and Firemen's Benevolent Associations . . National Industrial Conference Board, Inc. . . . . . . . . *Exchequer Club of Minneapolis ...................................................Christmas donations. » . ........................... ............................ ...

Miscellaneous expense in connection with closed banks . „ . . .Pension Committee . . . . ..................................................................Committee on Branch, Group and Chain Banking . . ..................JSxceBB expense over commissions in handling foreign business ,System Committee on Legislative Program . * .................................Misc* expense F«»R0Bank Motion Picture MBack of Banks & Business" ventilating and air conditioning survey bank building c . . . . All other „ . . 0 ............................. ................................ , . . . e

TOTAL MISCSUiAHEOUS EXPENSES

336.58 3 3 .0 0 369. 5s 392.92 266.54876.Ug 6 0 9 .4 6 1 . 11S5 . 9U 2, 210.52 1 * 970.07

1. 312*56 U50.51 1. 763.07 355.36 322,202, 0 1 1 . f t 139.61 2, 151.25 2 8724.11 2, 493. 9**

38-75 - 38.75 32*75 20.25360.98 - 360. 9s 50s„S5 635.6582U.61 19 9c55 1 ,0 2 4 .1 6 28S„90 4 0 4 .2 0

3 ,8 9 1 .4 2 216050 4, 107.92 4 ,0 7 5 *5 1 3 . 685.9081„90 53 *5 0 1 3 5 .4 0 154.52 261.8 4- 60.25 60.25 10*00 20*00- - - 1*50 2 f 2 l 4 . J 9

U.U93.60 1 5 9 .7 5 ***653-35 7 , 523.00 9 , 0 5 3 . %3 . 099.36 22*00 3 ,1 2 1 .3 6 1, 161.47 5 5 6 .7 5

20o00 12.50 3 2 .5 0 299-00 7 4 *0 0855*74 4 9 .9 1 905.65 2 ,9 6 6 .4 2 5 1 4 .2 7

6, 076. 91* « 6*076.94 5, 15^'OS 4 , 472.83374.65 S 6.00 460*65 7 3 8 .0 0 474.31

2 ,5 9 7 - 0 0 80 *00 2, 677.00 2, 393.00 1 ,7 9 8 * 0 0cm €» 12*00 25*002 ,8 0 0 *0 0 300,00 3 ,ioo«oo 2,8 7 5 *0 0 2,S 5 0 .0 0

250o00 15*00 265*00 265*00 25O0OO25O0OO 190.00 4 4 0 .0 0 350o00 3 4 0 .0 0165*00 1SC00 183,00 165*00 165*00300*00 m 300*00 300.00 300,00

=> • - - 15o0030o00 30*00 30.00 30.00

81 1*8 0 SlloSO 662.63 6 4 1 .9 0150*00 - 150*00 125©00 125o00

- . 100.00 100.0020*00 20*00 20*00 ce

S?o50 - 87*50 59*20 58*0095°**9 •am 3 5 *^ 9 7^ 7.51 l e4 l 0 * 6 0ca - - 788.56 5 6 4 .2 5- - - 1 7 4 .4 4

I d 5 1 3 .5 1 1 . 513.51 1 *151.26 1* 689.769 4 *4$ - 9 4 *4 5 -

3 * 96^030 « 3 . 96U.30 - •500o00 - 500*00 -tso • - - llvQg

3g,2g!i.26 2, 6S5„5^ Uo.979.SO 38.725.07 37.956.50Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPENSES,

Minneapolis I 1 ,185g561*88Helena 'l 0 7 A S Q o4.S $ 1,293,0500 3?

The above figures of 1935 operating costs reflect an In

crease of $83*1800 66 at Minneapolis compared to 1S34 and an Increase

of $4,553*55 in Helena expenses compared to the previous year*

Our estimate for 1835 exoenees revised in July was $1,163,534* at

Minneapolis and $101,387*75 at Helena, When it was finally under

stood that the Board of Governors wished expense to be charged with

the $57,711 necessary to make the new five year plan of retiring

prior service liability effective as of January 1, 1935^ we find

the Minneapolis expense was §32,027*89 more than estimated*, with

Helena figures showing an excess of $6,330*73 over estimates*

Salaries and note costs were the two items difficult to

estimate in 1335c We were not sure of the extent of some Fiscal

operations or the number of our regular employees we could make

available for the Fiscal work* Another change reade in the handling

of Fiscal operations was to charge for the time each employee de

voted to Fiscal work rather than to assign the full time of a

lesser number of people-

We have been advised that progress has been made in obtain

ing the assent of the Treasury Department to absorb a greater

percentage of the Fiscal expenses at Federal ueeerve Banks than has

been done heretofore* All the Banks have been allocating such items

as costs of redemptions* space occupied by Fiscal departments,

depositary accounting* etc**, to show the extent of the duties and

services we perform without adequate remuneration,, The time has no1*

arrived when this bank will have difficulty in obtaining income to

cover all needsE and the Treasury should increase reimbursement

before the member banks are called upon to pay for services» During

1335 our expense for Fiscal operations at Minneapolis amounted to

1*354^089050 with reimbursement of $173,942«07 obtained* At Helena

Fiscal expense was placed at $>10*317*570 Of this amount $10,085 ,46

was recovered, all from the heconstrucfcion Finance Corporation*


EXggNS&S (Con td )

Note cost^ during the first half of 1935 were close to

estimates but the subsequent requests for revision of note printing

schedules made necessary the expenditure of $51,146*94 compared to

$24,137*07 the previous year. We are anticipating note costs of

$38,000 in 1936 but may need to change our figures when the Budget

is revised in Julyc

The cost of conducting the industrial loan department was

an important element in our 1935 expensesc This work furnished

occupation for a number of our employees and needed a good deal of

attention from some of the officersc Out of $81,515*5? in costs

allocated to this work* $56*208*13 represented salaries* A portion

of these costs would have been absorbed in any case but the distri

bution was necessary to arrive at the proportion of exoense to be

borne by the Treasury Department based on the amount of funds advanced

for industrial loan purposes.. Expense of handling industrial loans

should be considerably lower in 1938.

in the Budget figures prepared for submission to our Board,

we have estimated a total expense at *linneaoolis in 1936 of

$1,178,070:, 60 and costs at Helena of $>105,S4!*83<, The combined ex

pense of #lj,383j,612042 is $9*437*95 less than the actual expenses

of 193So The estimates for 1933 include #83*040 of yearly prior

service contributions to the retirement System*

RETIhKJ&MT S ’fSTJSM OONThlBUYlONS

Minneapolis $108,889.94Helena 10 ,311 .80 $119,201*74

Compared to 1934, the 1935 payments show an increase of

|SS,941o66o The 1935 payments however, represent a complete year

with the 1934 payments covering only 10 months* The average month

ly payments on current service were $98 more in 1935 than in the

previous year,, Of the 1935 o&yments #36,161*74 is for current

services* As the Board of Governors wishes the payments for orior

service to appear in the Expense account during the next four years?

we will charge the 11 he serve for Prior service Liability” $8,920 each

month and Oredit to Profit and Lose to meet the charge of a like

amount in Expense* The addition to our oayments on orior service


EXPENSES (OOBtd)

liability each year is approximately #58/000 because we have

"been providing a,bout $25,000 under the twenty year plan*

By paying our prior service liability to the Retirement

System under the five year plan which called for an additional

payment of $5?r711 in 1935 and 48 subsequent monthly payments of

$6 ,920 , we will effect an interest saving of more than $58,000

over the 30 year plan put into effect vrhen the hetirement system

was established in March 1934 0

It should he understood that while we are able to obtain

reimbursement from the various Government agencies i'or payments

to the Ketirement Bystem in connection with current services of

fiscal employees, the Bank makes all the payment on account of

prior services. As a good portion of the work of Government

agencies will be eliminated eventually, the accumulations should

result in some reduction of our rate of payment on current services

which is 5*38i at present* Based on the January pay roll after

salary adjustments, the monthly contribution by the Bank to the

Retirement System, for current services of employees*. will be

#3,31?n

S&LAHIiCS

Minneapolis $621,039 <-93Helena 59 ,347,85 $ 680,387.78

Net changes from 1934

Payments to Officers, net increase & 4 ,357 ,54 Payments to Guards, building employees,, and other non-clericalemployees, net increase 20 ,148*IS $ 24>,5Q5...?2

Payments to Clerical staff, net decrease 6 ,539 ,80

Wet increase over 1934 $ 17?965ol2

On January l v 1935 after all salary adjustments had been

made, the total yearly pay roll indicated for teinneaoolis and♦

Helena, but not including reimbursable salaries, was $738,608* The

final results for 1935 made our payments $58,000 less than was

indicated at the beginning of the year* as far as the actual


payment8 compare with those of 1934 ? it will be noted the payments

to clerical staff were only #S,539oS0 less than in 19340 Most of

the 1834 additions to our employees had come during the closing

months and the deletions came heavier in the last half of 1935* On

November l p 1934 we had 4-85 employees at Minneapolis and 41 at

Helena,, One year later we had 394 at Minneapolis and 39 at Helena-,

While it is true the greater portion of the decrease came in

temporary fiscal employees, we were able to fill some of the fiscal

posts by persons transferred from the regular bank pay roll*

Between December l p 1S35 and January I , 1938 the staff was

reduced 14 persons* most of this number being affected by the rul

ing made earlier in 1935 that no person having a relative employed

by the Bank could enter our service and in cases where relatives

had been employed before the ruling, one must leave by January l s

1336* As of January 1$ 1933 we had 375 employees at Minneapolis

and 39 at Helena* or a total ox 414* On the 1st of January 1S35

we had 4 55 employees at Minneapolis and 40 at Helena,, giving us a

reduction of 81 persons during the yearc More persons were on the

reimbursable pay roll at the beginning of 1835 than at the close

of the year but during. December 3 officers and 108 clerks re

ceived all or part of their salaries from Government agencies.

Credits made to expense for recoveries on salaries of reoreeenta«

tives at closed banks were $5,704*55 during the year* rhere will

be a very small amount recovered in 1S3S.

The statement was ma.de early during 1935 that our Day

men t to clerical employees for the year would be less than in 1934

but that ??e could not bring; the complete pay roll for the year be-

low the total in 1934 because of the new scale of cay to guards*

Salaries for orotection were $2QP464*09 greater than in 19340

Including the salary changes to clerks and building em

ployees as of January 1, 1938, the totial pay roll for Bank and Fiscal

Agencies aggregates $765*850* Ihe estimate of salary recoveries from

the Treasury and other Government agencies is #107p143* ^eductions

SXPiSKSES (Contd)


EXPENSES (Con td} '

in salary payments to persons who will be leaving our service

but who received payments after January l t aggregate $13,877*

These recoveries and allowances indicate a salary basis for 1933

of $848f000 and a saving .of $34fGOO in comparison uith the previous

year.

Governors’5 Conferences $ 818.,55Federal reserve Agents® Conferences 0 Federal Advisory Conferences 1*817*33

Cost of conferences, other than those attended 'toy our Ad

visory Council member, were lower than in 1934« The Governor attend

ed four meetings with five meetings attended during the previous

year» Ho conferences of the Agents were held during 1935c

Mr* Wold attended four Council conferences, the same as in

1934o The above expense included $350 as our share of the remunera

tion to the Council Secretary and $132<,80 reimbursed Mr* Wold for

attending the meeting of our Board held in Montana last Julyc

DIREOTOKS MEETIHGS

Minneapolis # 10*335,49Helena '985,30 111,300c89

With the exception of the month of July f payments to

Minneapolis Directors averaged #709v85 per month., The larger oay«

ment of $3S53?„19 in July was to cover the cost of meeting at Helena

and attendance at the Montana State Bankers meeting in Glacier Park.

Some additional expense in connection with this visit to Montana

was absorbed at Helena* included in the October total of Directors9

fees and expenses was $503*38 paid the Directors making up the Helena

Building Committee which met in Helena September 33p 34 and 35«

More Executive Committee and Directors meetings were held

in 1934 at Helena than during the past year,. The payment of $965«30

in 1935 included 11 Directors0meetings* none being held in October,

Cost of meetings at Helena in 1934 was $1*404,30 with | 8 ?589<62

expended at Head Office*

IHDUSTKIAL ADVISQhg CCMttlTTEE 13 ,315 ,01

This expense represents the travel and maintenance costs,

but no fees, allowed the 5 members of our Committee for the complete

3 0


yeaTo Payments made in 1934 which covered only part of a year

were #1?371*37, We did not arrive at an understanding with the

Federal Reserve Board as to the basis of expense allowance until

February of 1835s when proper adjustments were made,

TKAVSLX&G SIPICNb&S

Minneapoli© $ 34,368* 3 5Helena 2„653«3S $ 27?032*34

Costs of this nature were #3,600 higher than in 1934 for

a number of reasons* For some years past the expenses of our

representatives at closed banks have been the major item in the

yearly total* During the year just concluded* exoense at closed

banks had lessened but zne cost of investigating and checking in

dustrial advances has more than made up for the decline in activity

at closed banks* Our officers contacted all the banks in our

District adding materially to bank relations exoense* More expendi

tures were made during 1935 in connection with bank examinations

than during the orevioue year* The demand for showings of the bank

movie "Back of Banks and Business11 is adding monthly to our trs.vel

exoense* At Minneapolis the classification of travel costs during

• 1935 was as follows?

Expense of representatives at closed banss $ 3 f732098Industrial loan investigations 7^333*56Bank Examinations 4,877«46Bank contacts, Group Meetings, etc* 7*834*37

KXPKisSJES (Contd)

134,368,35

At Helena traveling expenses were #900 in excess of the 1934

payments* Some of the increase was. due to industrial loan investi

gations made for Head Office and more contacts at banks* On examina

tions of the Branch by Head Office auditors, all travel costs are

charged to the Branch* Two examinations were made in 1935 costing

$1,191*20, compared to #588*90 for the one examination in 1934<

A S S E S S a i M I ifOK Qi< T H E

BQAKD OiTviOVEKNQKS OF TilEifKPEhAL hESEiftS S¥STBrf £34,118,34

The above assessment is ^3P 583*62 greater than the araount we

paid in 1934* All federal xu?serve Banks were required to set aside a

further amount to be oaid over in connection with the construction


of a building to house the Board in Washington* Our portion,

which amounted to #34*403o41 for 1935 was charged on our books to

a property account, When the Board of Governors decided that the

ban Ice <?ould not carry such an account f the amount ^ae charged off

in profit and loss account at the close of the year*

i«or the first six months of 1936 our assessment for Board

needs ip $43,357*9! and as we may not open a property account * we

are charging expense $7*209oS5 monthly* Of the total assessed

£l9e393,03 is for general purposes and $33*9S4o88 for the Board

building* Our assessment for general purposes during the first

half of 193S is #1*621*59 in excess of the payment for the same

period in 1935.

Our proportion of the cost of the Board assessment is

3.,38l> of the total«

LEGAL jrSES

Mi nneapolis £ 11* 078*60Helena 800,00 $ 11 ,878 ,60

There was no change in the retainer fees paid Counsel at

Minneaoolis during 1935* We had been assuming £600 of the yearly

fee of £1*200 oald Counsel Weir at Helena but this was all allocat

ed to the Branch beginning 1935* At the close of August the Branch

ceased to pay a retainer to Mr, Weir* In addition to £9,000 oaid

Ueland and Ueland at Minneaoolis* there were a few other payments

for special services with the balance going to various attorneys

for fees in connection with matters at closed banks* The payments

of the past year were #625 less than in X934 and the total is also

the lowest payment for many years*

INSUhAKCJE) ONAMD BEOUhXTj StUPMMfQ

Minneaoolis £ 6*832*98Helena '943.39 £ 7 f775,34

The full effect of lower insurance costs on shipments of

money and securities was felt in 1935 and this* with some falling

off in volume and more costs on security shipments passed on to

member banks* brought the lowest total absorbed for many yearso

The reduction irom 1934 costs of this nature was £3*191*54 at

Minneaoolis and £143*82 at Helena*

&XPu;B^ica (Contd)

3 2


EXPENSES {Contd)

OTHER INSURANCE

Minneapolis $ 17,974,39Helena 2 T 538„56 $ 20s506„85

The reduction of $2,804*59 from the 1934 ’’Other Insurance’*

costsf is partly the result of the discontinued Group Life policy-

maintained by the Bank prior to March 1* 1934, The insurance costs

got the benefit for 10 months in 1S34 with 1935 receiving the re

duction for the full year. Our yearly payment at Head Office and

Branch amounted to approximately #8,500*

On the Group Life risk assumed toy the employees, the Bank con

tinues to contribute 35^ per #1*000 monthly and the employee 60$

with che arrangement made that all return premiums go to the Bank.

In May 1935 the insurance account was credited #3,500* This result

ed because through the death of Miss Crockett her estate received

the benefits under our Retirement bystem and was not entitled to any

payment on the non«contributory policy,,

TAXES ON BANK. PREMISES

Minneapolis $ 79,978*73Helena __3 .,100-.39 4 82,079 ,13

Based on the tax rate fixed in November 1934 B we reserved

$6 ,765 monthly at Minneaoolis through 1935 for the payments to be

made in 1936* In *4ay we decided to pay off the special assessments

covering paving, park improvement, etc., in order to save the

interest added yearly, Under Executive Committee authority we added

|-ls358 o 73 to the tax payment due on *day 31 „ 1935,

When we were advised in November that the tax rate had been

lowered from the 1934 rate of S9 mills to 96 mills, the usual monthly

charge of ^6,765 was reduced in December to #4,305 to adjust the

total reserved.

At Helena there was a small reduction in the tax rate making

the Branch payment ?S4,86 less than in 1934.

The matter of taxes is more fully referred to under ‘'Sank

Premises *w


JSXFISKSSIS .(Go n td)

LIOHTe HEAT, ?QW£K ASP WATER

Minneapolis #18,463*30Helena 1 ,531 ,60 #19,993.90

Less fuel oil was purchased in 1835 than in the previous

year and as a result the costs at Minneapolis were $608„S4 lower*

Purchases of 132,300 gallons of fuel oil at 5^ cents per gallon

amounted to $7p304oQO» In the previous year 144,000 gallons had

been purchased for |? c613v380 there *?as a small saving in the cost

of electricity” furnished during 1935, the expense "being $10?537«34

compared to $10,868*69* Under our new contract,, recently signed,

we expect a reduction of approximately ISO in our monthly bills,.

The use of city water cost us $548*13 in 1835, a reduction of $3301?

from the 1934 coats®

Branch costs for pc^er, light and water do not change to any

extent, Power and light cost ranges between #55 and $85 monthly-

depending on the season,and water for drinking and other purposes

I 15 per month* The increase of $279*01 over 1934 expense is due to

heating toy natural gas* The change from slack coal to gas was made

late in 1934* This change, while more expensive, permits the use of

additional basement space and removes considerable dirt*

HISFAIKS AMD ALTERATIONS

Minneapolis $ 3*409.,00Helena 568,09 $ 6,877*09

At Minneapolis $3^000 less was exoended for repairs and altera

tions than in 1934« The past two years have seen quite a number of

alterations in the $age work on the main floor and on the coin level*

Our filing space was changed and a new gun range installed* A great

deal of replastering of walls and ceilings on the upper two floors

was done* Redecorating of the Welfare rooms, cafeteria, and officers'1

lunch room, repairs were required to the root and also in the boiler

room, 'Hie costs of the last two years have been considerably over

the average, but some increase must be expected to keep the premises

in good condition as its age increases* Some further repair wor&

will 'be necessary in 1S38, If contemplated changes in the ventila

tion are carried out, the cost of replacement would be charged against

the reserve already provided and any new construction capitalisedDigitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

under '’ Fixed Machinery' and Equipment* and amortized over the next

10 years*

In 1934 the Branch had considerable work done for the im

provement of the protection* During 1835 the expense has been more

than normal because of redecorating of the basement and store rooms

and later expense made necessary by reason of the earthquake damage,

A substantial amount will be necessary to restore the branch

premises but no estimate is given at this time*

Q-mOji, AMD BDILDXXtG SUPPLIES

Minneapolis #13,487«48Helena 1 ,598.67 $ 14,086*16

These costs in 1935 were approximately 30$ less than in 1934.

A decrease in bank personnel, less supplies required for some

functions and lowered oricee made possible through the abolishment

of the K* R. Ao were contributing factors* Less reoair Darts have

been necessary for our machinery* During 1834 we had extra exoense

covering the repair parts for our interior telephone system* The

above figures include uniforms for the guards and all building

supplies, with the exception of electricity* water, coal and fuel oil*

At the Branch costs were $535*3*3 less than for the previous

year for much the same reasons as at Head Office*

pi-urnara and s t a t io n s* # .

Minneapolis $15,383*65Helena l o94S027 $ 18,331*92

Our expenses under this classification showed increases each

year for the past four years* The reduction in costs during 1S35

of $4*369*20 was equivalent to the increases of the preceding two

years* Most of the reduction from 1934 costs came in the lowered

charges for printing, with some falling off in stationery costs.

Competition is keen for business among stationery and printing con

cerns and we are able to make our purchases on a better basis than

commercial banks,

Helena gets the advantage of any price concessions we ar

range oi) quantity orders. *or some months last year the prin|frs*

EXPENSES (Oontd)

3 5Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

strike forced the Branch to buy out side.. With the strike over

these outside firms continue to quote prices that retain a con

siderable part of the Branch orderso

TELEPHONE

Minneapolis $. 6*333*03Helena 979883 $ 7 s 301 <.85

There was a reduction of $534056 compared to last /ear at

Minneapolis and a email increase at Helena. The net decrease was

Sjf'&o Switchboard expense is leg8 than in 1934 but the major part

of the decrease is because of the fewer number of long- distance

calls* Switchboard charges at Helena were #618-*60 for the year*

Toll costs were also lower up to October than in the same months

of 1834 but the unsettlement caused by the earthquake Increased the

outside calls in later monthSb

TSLSGKAPH

Minneapolis $ 9 f331*89Helena 3,166 o 31 # 13t)490«10

Borne progress has been made each year in reducing wire costs

and especially at Helena-o There has been a natural falling off

for several years on account of the fewer member banks* On the

lowered volume there is not the opportunity to make the cost re

duction possible in previous years*, if or 1935 the reduced exuense

was |773C4G at Minneapolis and $473*43 at Helena*. Elimination of

accountst changing of codes* altering the type of message*,use

of the teleprinter, etc., are some of the changes effected at the

Branch« We have recently installed a teletype machine at

Minneapolis for receiving and sending messages over the orivate wire.

This machine will definitely place the responsibility for errors

and be otherwise more efficient* savings will be oossible because

Morse operators are not required* a good typist being all that is

required*

POSTAGE

Minneapolis # 93p583*36Helena 14.143,39 $ 106,725,75

Postage absorbed during 1935 for all purposes (other than

E X P O SE S (Oontd)


on shioments of new federal reserve notes from Washington and on

our unlit note?? sent for redemption) amounted to $8 ,882 .28 lee?

than in 1934. All postage* when procured, is entered in •'Deferred

Charge s'* and only the amount actually used each month is charged

to "Sixpence*- The general use of postage meters heloe us to watch

the postage costs more closely than formerly and comparatively

few stamos are used.

The decreased cost for postage may be attributed to a

falling off in ordinary mail and fewer remittance letters sent out

by the Transit Department* money shipping expense absorbed at

Minneapolis made up over one-half of the Head Office total* This

expense was &47?558a12 compared to #48.773,01 in 1934, On incom

ing shipments ot currency we absorbed $21,715-36 with $19?210.39

in postage used on shipments sent member banks* Less coin was sent

members* the postage expense being $6,, 632,37 comoared to $7,459*1?

in 1934, Included in the postage absorbed by Minneapolis office

was £13*55?.79 of aur-cbargee*- Sur~cbarges ia 1934 were *>13,89c> 40-

The increase of *436036 at Helena is the result of a small

expansion in the volume of transits and currency shipments,

Minneapolis office bears the expense of all supplies of cash sent

to the Branch,

EX^iiSSS&Gg

Minneapolis •* 8 ,569,98Helena • 1 ,300 ,73 $ 9 ,870 ,70

This item is made up largely of incoming charges on coin,

cost of operating the bank trucks and the charges lor sending

Treasury Warrants to Washington and some large transit letters to

member banks by express* Very little currency is sent by express

and most of the coin we ship is by parcel post.-, Xhe member banks

have not this privilege and that accounts for our heavier incoming

egress charges. Our 1935 expressage apparently *>as *3 ,500 in

excess of the 1934 charges but this comparison should be reduced

by £lf600 because of a refund obtained in JNovember 1934 covering

express charges on gold shinned in for account of the Treasury

during 1933,

KXP&NSKS (Contd)

... 3 7Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ffgDShAL hJSSShVJS CUrOiSMC* $51,146*94 (Original cost and shipping charges)

At the "beginning of 1S35 we estimated an expense of

$43,500 for notes during the year with the actual costs 144,524.,

This estimate was closer than usual In view of the fact that in

most years we are called upon to revise our note printing schedule*

Costs for 1935 were $37,,000 higher than In 1S340 in addition to

the payments for printing, we paid #S,S33o94 as shipping charges

on notes brought here from Washington to reolenlsh our stock * Of

the expense required to get these notes to Minneapolis $3,415 was

postage and #3,450 the surcharges with $757aS4 representing in

surance o

Our estimate for the coet of printing notes in 1338 and

shipping charges on the supply to be brought here is $38p000* Some

revision of these figures will be necessary If Congress does not

approve the plan to replace, without cost to the Federal reserve

banks, the 1928 series of notes now held with the new 1934 series

notes which do not bear the gold clause,

*£D£hAL juKSflttVS OUuhEftOf # 5*424,57 (bost of redemotion in- eluding shipping charges)

This total consists of #1,500 reserved on a monthly basis

of $135 for the purpose of providing iunds to pay the redemotion

costs of our notes destroyed at Washington* On June 30* 1935 we had

accumulated $1*675 for this purpose with the actual expense $1,518*90*

fiio change has been made in the amount we reserve monthly for 1938)

although it is lively the volume of our notes destroyed will s h o w an

increase. The balance of $3^934*57 was made uo of insurance costs

on shipments of our notes returned to us by other federal Keserve

banksjs the expense of sending unfit notes to Washington and postage

on shipments of other federal reserve notes returned by Minneapolis

s,nd Helena to the bank of issue*

KXPiii&aiiis (contd)


CAF&XERIA (Net Expense) # 6,076*94

The cost of the cafeteria to the Bank is well within the

one-third of the cost of food and service which the Board authorizes

us to absorb* In 1934 the coat was #1*565 less than the amount we

were authorized to absorb,, During the oast year total expense of

•,30,430-10 was |250e98 greater than in 1934 and we were oermitted to

assume $6 ,808 ,70 of this expense if we so desired*

salaries of cafeteria employees were ;is>6f9S3«68 in 1935 and

J$6„953<.48 in the year previous* Contributions of |4?5*04 to the

Retirement system were included in cafeteria costs in 1935., Cost

of food was #11,971,30 for 1935 and $64*58 less than in 1934* Ke~

ceipte amounted to &14 ,343*16 for the past year,with some of the

reduction due to the withdrawal of the E. J?c G* Agency from our

building* The 1934 receipts were #15^011^06^ Less expenditures

for food and lees receipts are anticioated for 1938,.

feltoCaLLAagUUS SXfr&NpfiS

Minneapolis *«> 38 ,284 .,26Helena 2 „ 695, 54 * 40- 979.,80

Payments for various purposes not regularly classified <nade

a higher total for miscellaneous costs than in 1934, The more im

portant items making up the total are briefly explained as followss

repairs and maintenance of furniture and equipment *1^485* 94, A

goodly portion of this expense ie for maintenance of branch equip

ment* At Minneaoolie we use our own mechanic but purchase the parts

necessary for reoa.trs* The total is lower than in 1934 when we re

conditioned our internal telephone system*. Outside protection and

inspection was higher than normal at Head Oft ice and Helena. Our

costs increased #18000 through a contribution to the City Police

Department for the purchase of armored cars,. The Helena payments

increased by reason of inspections made during the earthquakes* Out

side laundry and cleaning expense of #2,151.25 is y>570 less than in

1934 as the result of greater control over the towel suoply and a

smaller amount of cleaning necessary ior rugs* curtains, etc,

Postage meter rental of #1*034*16 includes the oayment in advance


of meter rent for a good part oi 19380 We do this to obtain the

discount offered for cash* Expenditures for newspapers, books#

binding, ticker service, etc*s. of $4,107*92 is uniform with such

costs in 1934„ All additions to the library,federal Reserve Act

service,and directories, are Included*

The full benefit of the reduction in cost of examination

reports furnished us was felt in 1925 with the cost of #4,653*35

approximate!/ $2 ,900 less than in 1934« Present prices are $5 per

report for Minneapolis and $2„25 for copies furnished Helena, Re

port© and geivvices furnished by commercial agencies required ex-**

pendituree of $3,l21o3S« The increased expense is almost entirely

due to reports made in connection with industrial loans<>

Medical supplies and examinations cost $905o65P The examina

tions are now on the regular schedule of a yearly examination for

each employee over 45 years of age and once each two years for those

under this agec One year ago we paid #2,986*43 for examinations

necessary at the time of establishing the Retirement system,,

Entertainment of bankers and others cost #460*65* Last year

the expense was $738 including cost of entertaining the Industrial

Advisory Committee which expense is now shown elsewhere* Employees1'

education called for payments of #2,577, This included $1 ,709 ,00

as our share of the assessment to support the local chapter of the

American Institute of Banking and 1888 as tuition refunds to

ployees completing courses* Of this amount $80 was paid Helena

employees*

The budget of the federal Reserve Club required contributions

of $2*800 at Minneapolis and #300 at Helena* Dues and contributions

to banking and credit associations and other organizations required

#l,475o50, Our payments to the Tax Payers Association based on the

amount of our real estate tax was $811*80* The 1934 payment, when

taxes were lower, was &SS2aS3.

Payment of H ^ S IS * 51 was made to the Federal reserve Bank of

JSXFSJBSSS ( COB t d )


iiew Xork as our share of the excess of expense over commissions in

handling foreign business,. The costs incidental to the orenaration

and taking of the Bank motion picture “Back of Banks and Business"

necessitated charging $3 ,964 ,30 tc miscellaneous costs in addition

to the equipment which was charged to *nrniture and Equipment, A

survey of the bank building in connection with air conditioning

and ventilating cost &500o

Information as to cafeteria, exoense is shown eeoarately.

KXPKflaiSS (Contd)


FISCAL AC-BNCY, CUSTODIANSHIP AND DEPOSITARYreimbursable expense

(Minneapolis Only)

RECONSTRUCTION FINANCE CORPORATION 1935 1934Salaries - Officers $ 4,600c00 $ 4 ,500c00Salaries - j£mployees 44,257,81 71,517ollRetirement System 2*489o?0 2 ,817e87Printing, Stationery & Supplies 692o90 2 ,316c 64Telephone & Telegraph 214c44 763c39Poetage 1,538.43 3 ,751c12Furniture & Squipment 10*00 2,205*46Group Life & Workmen3s Compensation Insurance 336c80All Other 124 c. 47 580c67

Total $ 53,827o75 $ 88,789c06

PUBLIC WORKS ADMINISTRATIONSalaries - Employees $ 5,337.54 $ 1 ,258334Retirement System 285ol0 64o09Printing* Stationery & Supplies 87c94 66 c 92Telephone & Telegraph 875c96 653*00Postage 225o67 23c 66All Other 6,98 lcS8

Total $ 6,819*19 $ 2,067c89

FISCAL AGENCY TRANSACTIONSSalaries - Officers .$ l,970o83 $ l,925n04Salaries » Employees 43,916o21 32,997c26Retirement System 2,369034 1,440,11Printing* Stationery & Supplies 5,320,15 4 ,634c 36Telephone & Telegraph 870,67 1,640c36Postage 3,531,22 6,883,76Furniture & Equipment 338,25All Other 522095 306c73

Total $ 64,501c37 $ 50,165c87

FARM CREDIT ADMINISTRATIONSalaries - Officers § 550*00 $ 929o18Salaries - Employees 20,970e23 27,401o55Retirement System 1,054.73 1*036=42Printing, Stationery & Supplies 885c83 3,339*67Telephone & Telegraph 52c 68 46 c 06Furniture & Equipment 950*41Rent 1,451o 91 l,617d5Postage 15,654,49 33,282c27All Other _ 18*22 20282

Total $ 40,638c09 $ 68s605e53

HOME OWNERS3 LOAN CORPORATIONSalaries * Employees $ 4,213t.25 $ 1*006„38Retirement System 212.90 50,54Printing, Stationery & Supplies 307o 30 103c56Telephone & Telegraph 15o02 16 c 21Postage 287*98 146e14All Other 40*85 c 78

Total $ o, 057c 31 i 1*323*61

TiORK RELIEF CHECKSSalaries - Employees $ 2,757o57Con tributione~Retirement Sy stem 147o59Printing, Stationery & Supplies 28c 53Telephone & Telegraph 5$ 28Rental of Furniture & Equipment 157*05All Other 2c 34

Total $ 3,098*36


The variety of our purchases during the past 12 months was

smaller than In 1934 but the total of purchases was only #600 lees

than for the previous year* We had anticipated a total under $15,000

and h&vfi felt for a number of years past that our normal require

ments should not take us beyond this total* With an exoert mechanic,

such as we haveP the life of our adding machine equipment has been

greatly extended and it is purchases out of the ordinary that are

keeping costs higher than expected.

Seven adding' machines were bought at Minneapolis during 1935

and 3 bookkeeping machines at BelenaF the total costing $5f313 ,730

Filing cabinets and equipment necessary to complete the new file

vault were added during the year. This type of equipment has added

most to our purchases during the past two years with $4 ,354 ,10 ex

pended in 1935 and $3,389e91 in 1934* uhen we improved our safe

keeping facilities in the vault0

A binding machine costing $542-07 and a coin counting machine

at #64So07 were added to the currency and coin equipment* The

Women9s lounge room was refurnished and decorated at a cost of $682*05,

In addition to the amount expended for the making of the Bank

moving pictures we purchased projectors and other accessories for

showing- the picture at an expense of $1*355*79* Other items will be

added during 1936„

The net amount of all furniture and equipment purchases to

the close of 1935 is in excess of #500,000 as shown by the figures

below;

Amount expended to close of 1934 #518,088*15 Purchased during 1935-^inneanolis 1 3 ,5 4 7 d 6 Purchased during 1935-Helena l t,530c40 $533*345o?lLess amounts received for furniture and equipment sold or traded in 24,317^05

'Iso s , 928 .,66sire insurance carried at Minneapolis 25s000o00*'ire insurance carried at Helena lQ«0Q0o0Q $ 35,000*00

ITUKNITUhE AMP mUltfkmVV


36131124i2II71121

4

22

KTRH1TUBS AND EQUIPMENT

Description of 1935 Purchases

MINNEAPOLIS

Desks $ 214«50Chairs 130*87Funnell Scrubber Polisher 262o84Typewriters 256*44Addressograph 444*22Majestic Coffee Urn 101„75Time card racks 19 c 73Venetian Blinds 9G„3GSunn Binding machine 542c07Tables 7*30Model J Pitney Bower mailing machine 663=.30Coin counting machine 646o07Hational adding machines 3,632c32Mebold vault door 75*00Costumer 2o30Motion picture-projectors and accessories 1,255*79Electric tse.ehing machine 45*41Filing cabinets & equipment 4,354e10Target carriers & holders 3.20*80 “Furnishings for Corner* as Lounge Rooma

1 12x15 rug $ 133,001 12x14 ru.3 122,006 Venetian blinds 125c003 Curtains 39 a 40 -

1 Magazine cabinet 25*00 •

Chairs, tables, etc» 171c45LampsPmirrors, etco 65 >20 682o05

Total amount of purchases-■Minneapolis $ 13,5470 16

Less amounte received for Furniture &Equipment sold or traded in8 Typewriters $ 80,00

$Lamps 3„ 00 83*00

Net purchases ** Minneapolis $ 13,464,16

HBLKRA BBAKCH

Electric Fans $ 50*00Burroughs Bookkeeping machines l,580c40

Total amount of purchases-Helena Breach $ lt630c40

Het total of Combined purchases 1935 $ 15,094*56

4 4


BANK PREMISES REPOBT m C M & m 31, 1935.FEO&HAL RESERVE BAFK OF tflNN&APOLIS. MINN,

BUIU>INS SITE

On r£3nal cost of land « a 600p000o00Incidental exaenditures coanectsd witn purcuace <. » „ 2.468.66

Total c c , , „ ,a<?> 602,468*66

Lees proceeds from sale of salvaged material « • . • 1t348»00Cost of building site * & 600,520 o 66

OMC8~aaca.

BUIIDI8S

Preliminary expenditures Coet of couptruetion<

BuiIding exclusive of vaults and fixed machinery and equipment a Vault coaetractionf; inc 1 ud 1 ng any additional structure or foundation made necessary by vault, and vault equipment , « * * Fixed machinery and equipment e <. * Less sale and charge-off of2 mechanical coal stokers (Original coet $1*956 each) . , . ,

Miscellaneoiis "building construction expense incurred by Federal Reserve Bank;

Fees & Expenses*. Architects » « , *Engineer9s • * » « «

TRXefi s e a t . o e « . « » . . e » u 4 BMaintenance 0 .................Cost of nev buildingCost of building and building site » • Charge-offs:;

Depreciation sllomnces • . * • * «. Taxes c ................................. , . .Maintenance . 0 * ..........................Total ...................................................

Book value of property 3 , ..................

o o o c

$629,483*15*

3,912-00

$ 3,000,46

1,730,065.37

323,750,54

626*571c16

148,027,79 15P846c00 74c 350,00 21.7Q5a 66

$2,942 .,316 ? 99 $3,542,83? <,65

$1,037,408c68 74,350c00

___ 21,705,66$1,133,464.34artTaBagaBargcapa w w a ■■a.”

$2,409,373,31

MEMORANDA.

Heserve against depreciation?Building » « .......................Fixed machinery and equipment

Total . . . . . . . . . .

$ 282-321s93 621,157,07

$ 9030479.00

* Includes $100,000 of architect's fees and expenses,


/

"edera! .Reserve Branch Bank at Helena, Montana*

Original cost of land and building „ e , , « , e » . . . S 15,000*.00 Cost of remodeling!

Building, exclusive of vaultsand fixed machinery and equipment............................. 57,642®95Vault construction, including any additional structure orfoundation made necessary by vault « * « « * . . » « 9,266*00Vault equipment, including doors,lining, and all interior equipment » » * » • . • • » 66,580*53Fixed machinery and equipment * * • * * . » . « * * 16,10839

Fees*Architects ........................... « ........................... . 5,433*57Contractor ®s Commission • « ...........................* . • 7,442*12

Total cost <, c c * ...............................................................* $ 177,474*3.4Lees proceeds from sale of salvaged material « ............... ... 75*00

$ J J 7 , 399*14

Depreciation allowances charged offsCharged to current net earnings o • . , . „ . . . , $ 21 ,29015

Book value of property * .................. ... .............................* $ 156,108* 99

MMQEMPA

Reserve against depreciation?

Building . . . . . . . . ....................................... . $ 114,818*74Fixed machinery and equipment * * . . . . . . . . e 16,108,;99

$ 130,927 f, 73

Floor space?.

Occupied by P. H3 Bank . . . ........... . . . .......................... 4700 sq0 ft*Rented ........................... ............................. . ................. 0 sqc ftcUnoccupied ................................. ..................... ............... 0 gq8 ft.

Total floor area in building . ...................................... 4700 sq* ft*


FSPftRAl HSSBRYS BAIK OF M3MEAK3LIS CHARGE OFFS 0? llm '' BUILPINS, and ?IXEP MAQHIHSBY AND SQPimKT

Land BuildingFixed Machinery aad iLcrai-nment Total

COST $1926 Adjustment of Architect*«

feee, transferred from ton tiding to fixed machinery and equipment

1926 Sale and charge-off of tm> mechanical coal stokers

600j 520066 $2,416,745,84 $529*483 15 $3,546,749,65

100,000,00 100f000.00

3,912.00 3, 91^00

600.520.66 $2,316,745,84 $625,571 15 $3,542,837,65---------------- £ — --------------- -------- i i i i i i m i ■ ■ ■ i i w w i i m — w w m b i n n w i m m m t m « . ^ 2» « a r c 5» j « w 3 « r a s a B :“ ----------

CHAR0EB-0FF,19191920192119221923192419251926 1327

Total

Book value gross

$ 100, 000,00 $100f000,00

3 s, 381 f 40 llp646,87 37,222-97

293,310,62 30„463,84 57 8438•64

500^000,00$ 100,000.00 $1,033.484-34 $ $1,135-464 34maamtmtammmmmmKaaaPcmmfK

600p520 <.66 $1,283,281,50 $625,571,15 £2,409,373 31

DEP&ECIATXON RESERVE AW UET BOOK VALUE

Depreciation Heaervea

192419251926 192?192819291930193119321933 1924 1935

38,814,40 32,516. So 5,665*63

25,665o63 25*665;6325.665.63 25,665-6325.665.63 25# 665 c 6325.665.6325.665.63

$ 12,814„73 52*396.55 71 ,,222:95 62P0051 35 62,005.3562.005 3562.005 33 62 c 005v 37 59 9839„35A 59e839,35A 5 4 4 6 5 63A

551 76

'otal depreciation reserves $ S 282,321,93 $621,157 07 $903 ,4^9 .00

Met Book valu# $ 500,520,66 $1,000,959.57 $ 4,414,08 $1,505,894.31

Ik) Net after deducting $20166:00 for Otis Elevator Service Contract


E5L-SM BRANCH, .FSaEHAX B3SSBHVS BAKK OF M1MHSAPOLIS CafiRG;E«*OF.?S 0 ? IA30C ’bUILMN3, AM) ?IXBJD MACHINERY . J.QJJIPMEKT

Building

Total coet Gorged off 192G Book: value gross

$ -5,000.00 $ 156,290.15 21,290.15

$ 5,000 c 00 $ 135.000«, 00 oaM«4«Kai»£iacyts.,ar» J wa=rswa««n*»v;srax<*

Fixed Machinery

and Eouitgaent

$ 16.108 „ 99 t\

$ 16.108o99* vas3*sac*3S!»3assaaM

Total

177,39961421,290o15

166.108e99

DEPRECIATION RESSHTiiiS AM) NET BOOK VALISE

Depreciation tteeervee

1220 $ & 56,447.49 $1921 1,893*231922 1,655.37 1,610.90.1923 1,571.05 1,541.73 *1924 3,125.80 1,610.901925 3,125.80 1,610,.901926 2,-700.00 1,610,901927 2,700.00 lt 610.901928 2 ,700c00 1,610*901929 2 e. 700*00 1,610.901930 2f700*00 1,610.901931 2,700.00 1,680.061932 2,700.00 01933 2 ,700o00 01934 2,700.00 01935 22,700.00 0

Total depreciation reserves $_ $ 114,818.74 $. 16,108=99

Ket oook value4Www»»««'iy» 1 « MUiihi 11.11 II HI » mwiii #H»»,HIW|||«W LUtl

$ 5,000c00 $ 20,181o25 $ .... ....

130,927,73sSffwraas25,181.£6

• Net after deducting $69.17 for replacements0


BANK Pk SMXSSS

During 1335 some changes were necessary in our operating

space but these were not. nearly as extensile as in 1834, The

currency handling arrangements on the main floor and coin level

were changed a great deal during 1934 and further alteration of

the cages to provide more lobby window space for the Fiscal depart

ment;, our heavy registered mail could not be handled efficiently

in the cage provided, and a larger cage was constructed at the rear

of the Discount department,

With the departure of the reconstruction Finance Corpora

tion Agency, we obtained space desired for transit work and by

transferring the Industrial loan division to the discount depart

ment on the main floort further soace was made available on the

second, floor., The lessened deliveries of Federal Farm Mortgage

Corporation bonds reduced the pressure for space near the vault,

Much replastering of beams? ceilings and walls on the second

and third floors has been necessary during recent months and reoairs

of the same kind will be needed on the basement and lower floors-

The Welfare roomst cafeteria and Officers5 dining room were re-

plastered and redecorated during the Summer months,

Q,uite a number of changes were made on the ground and base

ment floors o In order that expansion could be had for the files,

the room where the target range was located was taken over and a

new location found for target practise on a lower level. Before

this change was brought about, the sound of fire arms was quite

noticeable on the banking floor.-: fhe new range has been carefully

installed and should increase the efficiency of the guards* »any

new steel cabinets have been placed in the enlarged file vault and

a new lighting system installed* nebricking of the fire boxes ini

two boilers was done and all broken tile on the roof of the building

replaced*

Some of the alterations and improvements which will orobably

be carried out in 193S are repairs to the sound-proof ceiling on

second and third floors* replastering of locker rooms and other rooms

on ground floorp painting of second and third floors and elevator


BANK Ph&dlggS (Contd)

shafts* The Directors” room requires redecorating and new shades

and awnings are necessary lor a number of windows* A ll •electric

fans will be equipped with wire guards and new tracks are required

for 11 elevator doors* Water-proofing three sides of the bank build

ing is contemplated*

Changes made by the building superintendent, which add to

safety and protection, include toe followings

Gun ports,, bullet proof glass windows and ventilator were

installed in armored truck*

Steel gun cabinet installed in Guard Koom for safekeeping of

all firearms and gas equipment

Compulsory target practice is held in the bank target range

three times each weefc* During the summer when weather permits, in

struction and practice in the use of machine guns, shotguns and gas

equipment* is held at Fort knelling on the outdoor range*

The Guard has been equipped with the latest in Colts 38 Caliber

Official Police Revolvers*

The guard force is now operating with a total of 29 men-. This

is one man less than in 1934<,

Expense of operating our property was estimated at |14Sf550

for 1935p with the actual costs #144p884.,.55* Compared to 1934 there

was a saving of $3 ,131*?9« Three less building workers were carried

in 1935 with salaries $30*547,3? compared to $33,538.,79 in 1934*

Fuel expense was lower in 1935 because approximately 13g000 gallons

less of fuel oil was purchased* The maximum price paid for oil in

1934 was 5i cents per gallon with a price of 5£ cents per gallon in

effect most of IS0 5* Electric current cost #10^537*34 for the year

and 1331045 less than in 1934,, Our new contract for light and power

should result in a saving of about #80 per month based on the present

consumption,

BANK PREMISES (JDepr ec‘i at ion)

Building depreciation reserves have been accumulated on the

iiinneaoolie property since 1935 and amounted to 1283,331093 at the


close of 1935, With replacement cost fixed by the Board at

2 8 3 ,2 8 !o50 the addition to reserve yearly at has been #35,685,63

Besides the depreciation reserve set up, we were permitted to reduce

the original cost by #X,033f464*34 between 1930 and XS370 The net

book value at this time is lip000,959„57 or a total reduction of

# 1 ,31 5 ,786to27 from original cost, Cost of site for our building was

$600,530*88, At the close of 1919 we were permitted to charge off

#100 , 000 ,. &o other change has been made in the land value.,

The depreciation reserve for fixed machinery and equipment

was increased |551o76 on December 31 , 1935., At the close of 1934 the

balance remaining in the Fixed machinery and Equipment Account had

been provided for through yearly 10% additions to the reserve*

Original cost ^as |B30f053o55o During 1934 we added $5,517-60 to

Fixed Machinery and Equipment representing the cost of material and

construction for the steel forts provided on the main banking floor

and the ground floor« With the 10% reserve provided for this new

equipment for 2 years, the present net boolc value of Fixed Machinery

and Equipment is |4,414*08* Including all allowances and reserves

the net book value of Minneapolis property on December 31, 1935 was

*1 ,505 ,894 .31 ,

At Helena we have been setting up a depreciation reserve on

the building for 16 years-* With the normal yearly depreciation

addition of #2,700 and the special addition of $ 20s000 approved by

the Board of Governors on account of the earthquake damage7 we have

accumulated §114,818*74, The original cost of the building and

vault was #158,390*15 from which a deduction of #21,290*15 was per

mitted to give the gross book value an estimated replacement value of

$135,000* After all deductions and reserves are aoplied? we have a

net book value for the Branch building of #20,181*26* This amount

should be written off at the close of 1938* Land value has remained

unchanged at #5,000* nixed Machinery and Eauipment original cost

of #18,108o99 had been provided for by the close of 1931.,

BAMK PREMISES (Contd)


SAM PixkaLIbJStt (Taxes)

Valuation of our property for tax purposes was fixed at

#2p0 5 0 ,0 0 0 and is unchanged for 1935* £'or a number of years we re

ceived reductions under an agreement reached in 1930, The big jump

in the tax rate from 77 to 99 mills fixed late in 1934 offset all

the benefit we had previously obtained from the lowered valuation.

Taxes reserved at Minneapolis in 1S34 were #81*513*29, In paying

the first half of these taxes in m y 1935 f we charged ;$lp258., 73

additional to expense and retired our liability for special taxes,,

thus saving the interest charge* *or 1935 the tax rate was fixed in

November at 96 mills* This reduced the 1935 assessment approximately

13,400, The actual amount charged expense in 1935 for tax payments

in 1936 was ^79,,978,73 which includes the advanced payment on special

taxes mentioned*

We continued to make the regular yearly contribution to the

Tax Payers Association* of 1$ of yearly taxes* Our payment in 1935

was $811t80c

No change was made in the Helena property valuation for tax

purposes which is #79,767., The rate in 1934 was 90*92 mills on 30*5

of valuation or #3^165*25. Taxes paid in 1935 amounted to $2 ,100 33

at a rate of 88.>30 mills..

BANK PhEaUSfiS {Con td)


LOAfiS,. h£D I SC OUJm AMD AGCKPTAflO.Sa

There was little demand from member banks for discount

accommodations during the past year. Loans totaling #656,870*42

were made to fourteen member banks* In 1834 we advanced $2t525,473*90

to 47 banks. On December 31* 1S35 bills discounted for member banks

amounted to #33,478*38; in addition our participation in foreign

loans on gold amounted to #8*400 making a total of $41 f878<>38 of

bills discounted* Our discount rate was lowered from 34 to 2it on

January 8 and to 2 i on May 14 , 1835*

Bo purchased bills* other than investments through foreign

banks, were held during the past year0 On December 31, 1834 our

participation in investments through foreign banks amounted to

#80,517o39 and was reduced #19,510*77, leaving a balance of $61,006*52

outstanding at the close of 1935,

In August 1934 we began making industrial advances to

established industrial or commercial business for the purpose of

providing them with working capital* We advanced #2,033,350 to the

close of 19349 banks and financing institutions participating to the

extent of #143,, 700* Of the $1 ,886 ,850 of Federal heserve Bank funds

loaned, #134,312*33 -was repaid during 1934 leaving a balance of

$1 ,753,437*77 outstanding at the close of the year« No commitments

to make industrial advances were made during 1934.

During the past year ^e made 101 industrial loans totaling

$1 ,146 ,000 in which financing institutions participated to the extent

of $148,900, leaving a net of §997,100 loaned by us* Repayments

totaled $1,158,669*95 during 1335 on the amounts loaned by the Federal

Reserve Bank for Industrial advances and a balance of $1,288*66 on

one loan was charged off as a loss, leaving #1,589,565*13 outstanding

on December 31, 1935, These loans are made for a period not exceed

ing five years and bear six cer cent interest*

In addition to the industrial advances we issued commit-*

meats to make industrial advances totaling $296,644*50. A charge

equivalent to one per cent interest is made on commitments. Our

contingent liability on commitments to make industrial advances

amounted to #138,397,51 at the close of the year*


.OlSQvjQMT QiJ Qj-i5 f IIi<»T£APC&I S Alii) faijL&icIA Bli/iuTQH

(Excluding Industrial Advances)

“M

Month

Jfamber of Basils Served

1935 1221 1221 1225.

Kisibor of Iteoa Hecclved

____ i3Ilt.....1933 1221

Amount Rediscounted GOO Omitted

122iL 1221

January 0 26 ip9 0 172 2 ,& 5 0 53©February 0 13 147 0 71 1*570 0 320March 1 11 16S 1 54 2,436 35 222April 5 7 100 s 26 943 161 112May 1 B S9 2 10 sp 100 S2June 2 12 7s 23 52 667 59 600July 6 6 55 27 23 5&7 135 101August '4 5 % 20 10 U07 67 92September 3 2 kz 14 5 3S5 28 329October 4 4 39 10 55? 63 126itovember 2 1 4s 6 1 414 19 5December 2 0 39 3 0 272 10 0

Humber dif440ferent Basks 14 47 271 142 12,032 657 $ 2,525

VOLUME OF REDISCOUNTS

Horth South

Mlnnesota Dakota Dakota Montana Wisconsin MichiganHumber pieces 1935 1? 4 ncT 1 0 2Redi scounted 1934 54 46 1 225 25 5%

1933 3.91^ 1*162 U.403 98> 77a 801

1932 8,720 5,126 9^90 2,873 1*186 1,29S i

1931 . 4, 4oi 2,27s 3*750 1,996 1,061 3701930 2,553 2,636 2,90s 2,3l£ 530 127

7,4146.794

is,43s

4.7953.5522,5201,%71,075

g!+5

1,3541,173

756

$ 50.173

Total~TTJF

440 12,03S 2S*S93 13? 856 u 8oq6

LflanesotaTotal amount Rediscoiuited

193S $ 273, 877,00193* 130,224.901933 23.2s6.5s1.s71932 62,253. >+53.681931 20,912,698.23

Imp rth Bsteofca Montana14*000*00

126, 330.631, 334,896.309.7^ , 596.705.377.637.75

South Dakota

10 ,993.42 $ 9, 003.00 i-7.756.24 204,7 SO. 00

10,099,097.60 6,527,076.26 33.1S5.35S.35 18,039,003.22 12,197,074.41 5,534,600.11

Wisconsin Michigan

. - $ ’ 55.ooo.oo 1 .245, 259.37 370,022.76 3 ,543,744.93 4 ,751,030. 9s

14,451,661.14 7,347,797.09

4,557,039.83 1,713,198.27

______ Totalr £56, 370.42'

2,525.473.90 50,172,427.94

145,521,872.1s 50,292,243,60


CZsGSED B M K S

At the close of business December 31* 1934t, the unpaid

liability to us of seventy-two suspended member banks was ^811f955,?8*

During the year 1935 no member bank's suspended*

The total collection from all sources during 1935 amounted

to #384r 5.35,49, Of this amount #311,484,70 was applied to reduce the

direct liability of the suspended banks,. leaving a net balance due

from these banks of $500*471 ,>08 at the close of the year 1935* Of this

latter amount the remaining liabilities of twenty banks* aggregating

$237*894*85 were charged to the special reserve for Losses, as follows-

Sixteen prior to 1935* totaling £187,978*51* and four during I935P

totaling &39f91Sc34, Uncollectible advances of various nature oi

eleven banks aggregating $15,, 708,19 have been charged to special re

serve for Losses^ as follows* Nine prior to 1935* totaling #12,725,11

and two during 1935? totaling #2^983008^ making a total of $>243,603*04

charged to such reserve account.

Names of the banks from which recovery may not be made and

the uncollected liability of each are given in the December report

from the Closed Bank Department,

The*forty«five banks shown on our closed bank liet as indebt

ed to us on December 31„ 193 5? include the twenty banks mentioned above

As security to the liabilities of the remaining twenty-five closed

banks amounting to $272 ,576 .23s we hold *1,201*790*01 in notes* In

addition we still retain worthless paper in the sum of £435,550,12,

This paper is collateral from the twenty banks whose indebtedness to us

has been charged off*.

As of December 31„ 1935, four hundred seventeen member banks

and one non-member bank had closed, with total liabilities to us at

date of suspension of #18-,638,905,20, Of this amounts we have re

ceived payments aggregating $18?138 ,434*13, including full liquidation

of original liability due us from 372 member banks and one non-member

bank, and there remains now due the sum of only *500*471,08 as here

tofore indicated. In addition? we have received 4 51,172 . 62 interest

and 1419,804,35 in reduction of our collection expense* Unpaid

collection expense accumulated as of December 31? 1935 amounted to


GLOBED BANKS (Gontd)

&1Q5,774o27 .5 During the past year #43 y 339.,00 was credited as re

cover/ of exoense, $40/787C.4Q as interest collected from these closed

banks, and # l,361a47 interest on other advances made to protect our

interests.-.

In addition to the recoveries mentioned* we have collected

# 2r763077 from banks expected to fully pay original liabilities*

collection expense and accrued interest, which amount will be event

ually applied as recovery of collection expense and/or interest.

With respect to the one non-member bank mentioned above;

The first National Bank of Scranton, Korth Dakota*, consolidated on

March 3, 1931, with the Bank of Scranton, a state non~member, which

latter bank at consolidation assumed liability of the member bank to

us on account of redicounts in the sum of |44y653»00o On October 14,

1931, the Bank of Scranton suspended with this liability only partial

ly reducedo It was reopened April 25, 1932, and the assumed liability

was fully paid on February 8 , 1S33*

The average number of employees on this work during 1935

was 9«58 as compared to 14*39 during 1934„ An average of 1„25

officers3 time was allocated to this function in 1935 in comoarison

with lo30 in 1934.

COMPAitATIVE HMCHOHAL EXPENSE

1935Salaries - Officers Salaries - Employees Contributions - retirement bystem Traveling Expenses stationery and Supplies Telephone and Telegraph Legal Fees All Other

j L O t a l e » 3 0 o t , o e c

| 9 ,875 ,00 16,045*54 1>?896.,46 3 ,732 ,86

350,65 220*40 None * 915,23

$ 33,038*24

1934$ 11, 239., 39

28,014*00 None

9 , 3?9o 77 852 c01 390o20

4,860055 3 P 8 6 9 0 2

$ 58 <, 604 o 94

* Because of the ruling of the Federal i-teserve Board all legal fees

in connection with Closed Banks for 1935 were allocated to the bankfs

legal function.., Legal fees applicable to Closed Banks during the year

amounted to 13,028*85*


0H3SQIC COLLECTION FGflCTIQKi ” ( Mimie apoi i s Only ]

During 1835 this function handled 35 (;888j)?10 items total

ing $4 ,165 ,376 ,597*08, an increase of 891,034 items and $406,703,600.33

in amount as compared to 1934 with 34?797,688 items? totaling

$3,?58*,673,996c6S0 The volume handled during 1935 was the highest in

the history of the Transit Department*

A comparison of the number and amount of items handled, the

average number of employees* and the total expense of the Check

Collection Function for the last seven years follows;

AverageHumber dumber of Total

Hrpenseif ear of' Items Amount Employees

1935 35, 688 9710 $4 $165, 376 ,587,, 08 49« 651934 34, 79? 9686 3V e\758, 673 ,998.-,86 54 o951933 18, 867, 788 2 f,86S, 953 ,60 46o 501933 17, 183,; 383 Sr 342, 396 , 356 c,44 381 401831 18, 974' 087 3 S743, 741 \SQ8,>63 3So831930 31, 139, 178 3, 334, 678 ,473,;48 43, 571939 31, 751, 365 3 , 685, 333 ,581,,36 53* 81

$ 78 ,190 ,99 79 ,426.01 73,110*78 S3, 996., 33 71,196*45 77 ,873 .79 8 8 ,681c SO

The following table indicates the number of item?! handled by

the sub-divisions of the Check Collection Function for the years 1933

through 1935. We commenced handling U, Government work relief

checks in July of this year0

Items Handled On 1935 1934 1933

Twin City Banks (Clearings) 4^070,358 3*758 5,656 3,711,357Member & $«on-member B&iiks 15,317^863 135811PS89 13*131,768

(This district)Other Federal heserve Districts 1,751^608 1,430^133 l,843j,131 Direct to Member Banks other

Federal Reserve Districts 47,867 65^904 61,074To Helena Branch?Helena,Mont* ' 56,157 50,197 31,597Treasurer of the United states 3,990,948 5,681,517 I y688,851 OoGovernment Work belief Checks 553.909

3 5 ,688p 710 24 ,797 ,686 18,837,768

The cost of handling a hundred items in three units of this

function for the years 1939 through 1935 follows?

City Checks Country Checks Return'{ear (Clearings) (Outgoing) Items1935' 16,0 cents 33*0 cents | 1*391934 30*3 if 33,3 ri 1< 691933 17.>6 H 37,0 ♦I 1 c 161933 19.3 tl 34,7 ft 1.361931 19,4 It 35.1 a 1,361930 30,1 (1 34*9 it 1,361939 30.7 It 39 e. 5 it 1.43


CHECK COLLECTION jy'UKCTIQH (Contd)

The average number of items handled per person per day in

these three unite of this function for the years 1929 through 1935

follower

if earCity Checks (Clearings)

Country Checks (Outgoing:)

ReturnItems

1935 3,476 27588 ’ 407 '1934 2,031 • 1,796 2681933 2, 315 1,574 4521332 2,316 1,911 4311831 3,374 2,040 4621930 2,156 2,063 4921929 2,071 1, 551 443

A comparison of our 1S35 check collection costs with latest

available figures for the other Federal Reserve Sank Head Office®

(first half year 1935) shows that our costs are below the average of

all main offices* The average costs of handling 100 items in three

units of this function for all dead Offices for the first half of 1935

and our costs for the full year 1935 were as follows;

City Checks Country Checks(Clearings) (Outgoing:)

Our 1935 costs 16*0 cents 23.0 cents Average costs F<h,Banks

Head Offices 27«2 32*0 ,!

returnItems

$ l e 33

1,73

During 1935 we handled 2433,598 return items totaling

$19p879,247*63 as compared to 236.378 items totaling #18,856,327* 18

in 1934« Included in these figures are non~par items sent us in error,

non«cash items forwarded to us as cash items, items returned by drawee

banks for various reasons, and other items returned to depositors-

The daily average number of transit letters received and sent,

the. number of banks reported closed,, number voluntarily liquidated,,

number reopened, and the number added to or removed from our oar list

during the years 1929 through 1935 are given in the following tables

Year

Letterereceiveddaily

letterscentdally

Banksreportedclosed

Banke Vol

untarily lioutdated

-Banksreportedreopened

Banke added to our par list

Banke : from pi iiet

1936 1,245 866 0 9 4 11 241934 1,287 895 9 15 4 6 221933 1,391 942 134 8 15 24 581932 1,162 1,020 143 5 2 11 581S31 1,244 1,150 274 10 28 5 971930 1,351 1,312 160 5 7 2 701929 1,435 1,416 92 10 7 7 73

5 8


OHEQK OOLLEOTIQfl FUNCTION (Contd}

Under date of May 21? 1935, the Secretary of the Treasurya

Washington, D0 Co, requested this bank to act as agent of the

Treasurer of the United States in paying checks drawn under work

relief legislation by Regional Disbursing Officers for states of

Minnesota, Montana, North and south Dakota., The checks are drawn

on the Treasurer of the Uni ted States and payable through the Federal

ueserve Bank of Minneapolis« During July 1935s we received 115

checks but the volume increased raoidly,, and in December 1935, we

handled 2 6 3508 checks* We make the usual examination of a drawee

bank by passing upon the signatures and endorsements*


MOHTH

1225JanoasyFebrnazyMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberTotalMonthly Ave. l!o„ Items Honthly Ave. Amomats

e m ral HjasBHVB bae& of mikhsapqlis

i&?aiT~Qr SlUITSXT jJaPivIMGLUSiyg ffQK Jgi YEAR 19^5

OUBAHISaS

inaaber307»S2S286,254330,699331,861362,2763^5,9343 6,513330,373346,242

379,97?3U0J W

■fearon*;$ 151,883,385.01

134.l4s.7ll.67 169.7^.521.56 l82.275.Olrt.5H 191,SU.2ll0.79 179,120,311.38219,747,00s.6s 209,076.986.03 229,535.60 .39 2 3,366,039.20197.277.375.69 190.0p2, 298.85

4,070,35s $2e29sToET527«79339rl96

$ 191.503*377^31

HBECT 20 M S II 0 » RESERVE DISTRICTS

OTHER BBSBHTO BAMKS

ITuraber

1*173*3311.063,9171,212,15s1,264,1351,333.3751,312,556l ,32l,5oa 1.246.997 1,245.167 1,419,912 1,286,966

_ 1 ,337.447 15,217,863

1,368,155

ABOdUlv$ 71.882,343.12

66,^9,058.52 79.9yl.736.72 85,846,672.25 90,737,305.58 92,788,749.8596.706.963.5592.154,005,4696.3fc»Ha.66

109.628.017.7598.807.572.55

$1,073,731,803.79$ 89,394,316.9s

feiber" 128^85Ul,727125,028137.239 135,691138.240 160,225 149.479 145,613 182,975 158,418 173.288mtm—ttmmtmiJbrtm*• ib mn .a WIW

l,751.SbsW 5.967

Amount2 1 , 5 5 5 7 5 3 2 . 5 1

21,89S, © 6,8422.435.944.14 26,566,234.68 23.945.6oo.57 27.632,531,2730,455, S70.S730.434.280.15 29,041,493.43 33.365.^9.1531,298,712.12

$ 3317684,970.89

$ 27.640,414.24

50 0TB HBLB3A BRANCH M US

KEASUm OF THS OHITED STATES

TRSASmSH OP THE UIIIT3D STATES WORK HS1IBF CHECKS

1235JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberUovemberDecemberTotalMonthly Ave. Ho. Items Monthly Ave. Amounts

Umber“4 ,2a3.64i3,8663,7903,5053,6803,3364,1954,5924.S493,3303.302

W ^ T 3«

Amount i 4ToFT337.44

3,64i,824.4i 3,4S5s2a.7S 4,402,876.26 4,005,809.37 4,298,920.094 .336.459.59 4 , 143, © 0.364,323,761.725,355.713.394.631.369.604,773. 658.44

$51,463^334.61

$ 4,288,652.33

I?umber 4,013 $ ,858 ,258

4,631 4,832 4,70s4,704 4,807 4,932 5,809 4,732 4. S6S

56,157 $6 4,680

Amount109VS4

!3,148.75 448,745.13552.195.75599,180.%593.253.79632,520.88603,827.66582,899.24643,906.016q6, 40S.S5

ii§6a5ZfiiSl,486,772.08

Grand Total Items .. Grand Total Amounts

$ 5^0,564.34

25,633,710$4,165,376,597.08

EtBabar392,103427,442389,023482,0774i6,l42289,071258,835223,56s197,160271.503325.889318.080

3.990.948332,579

Amonnt$ 32,263,^62.30

30,090,307.9528,496,650.7s

s , 3 4 4 , 9 0 3 . 1 9

42. 834,457.1933.439.858.8527, 680,87 S. £9 32, 883,341.5327.320.080.86 36.i5i . 62S.39 34.362,270.64 32,653,384.06

IfGEiber Amount

$333,531,225.15

$ 31,9&) ,935. 2

11525.47948,73980,266

135,801262*509.553,90992,313

5.838.59633,951.04

1 ,043,690.721,929,753.333 ,056,207.903,763.001.29

$15,437,463.37

$ 2,573,910.56


fWXI CIgr gLSAHX%GS £H?,Qim FSPSRAL HBS5&YB.BAM SXBBCg SEITBIagS gQ OiHiSR KSSERVE B @ 5 ~ BY GUR IBlkiS 3AlICS 1935 and jq?r~

Daily Average -terantAsicr&nt of Items Acxroat of Items Grand Total Grand Sotal Clearies Held Over If&afoer of Xteag Amooati

Month on aalg»3asfcfl on st«.Paxfl. Bks 1935 ISi1!........1235. I I M 195j5 X3j&

Jaanaisr $ 120,227,OSS.83 $57,604,302.09 $177,831,390.97 $176,329,704.64 $105,0£&.68 $165,495. 5s 97,243 86,938 $28,256,323.44 $21,059,797.22Febroaiy 107,346.797.77 53.276,577.51 160,613,375.28 157.430.012.83 123.358.88 159.STO.79 85.069 76,726 21,260,006.01 21,628,076.55liarch 134,625,373.2s 64,304,942.24 198,930,315.52 200.727.99s.20 122,698.20 158,575.27 95.206 88,129 29.053.4l4.02 19,4so,580.01April i4s^58§l%3,95 66,646,266.36 215,232,760.31 17S,680,013.13 146,425.53 129,243.42 99,001 90,746 28,428,544.64 22,622,891.00May 156,749„469.36 67,670,477.12 224,419,946.93 i a ,766,493.54 136,923.79 141,763.67 3.03 »&5 3 92,722 35.092.513.04 25.606,056.56June 140,062,199.36 69,643.033.87 218,710,233.23 197.319.362.36 142,599*70 123,450.31 101,421 96.231 27,323,209.58 29,521,933.22July 175,922,673.64 72.569.271.43 243,491,950.07 194,002,355.08 138,452.51 120,735.35 103,133 92,334 32,336,733-19 26,534,314.31august 169,221,149.69 63,369,054.04 238,090,203.73 216.63s,425.33 134,128.23 160.523.19 100,981 93,203 23,252,619.06 26,744,768.32September 133.057,603,29 72.639,733.61 260.697.336.90 231.317,093.83 137,404.58 161,691.02 93.%5 87.986 35.433,536.34 29.266.a 9.57Oetoter 193,7^ , 113.19 77,246,746.51 270.976,859.70 223.039.296.66 17S.769.5I 166,737.17 115,417 105,371 37.300,775.64 33.940,091.91Hovember 157,433,291.80 73.650,772.54 231.034.064.34 202,155.518.20 188,939.67 l62.5s7.06 105,127 97.312 2S.S94.339.17 26,960,631.55December 150,856,729.58 72,294,387.02 223.l45.ll6.6o 203,036,374.53 179,610.51 132,460.66 115,372 104,979 32,476,264.99 23,lliO,172.5S

Total ’ $2,663,223,603.53 $1,784,395.79 17^20^33 $365,208,1^.12$a6,42o, 6i4.34 $2,368,042,653.43 $1,796,203.99 1 ,113,677 $311,506,133.53

Average ^Hoaths $154,317,749.10 $68,035,051.19 $222,351,966.97 $197,336,887.79 $143,699.65 $149,633.66 101,744 92.806 $30,434,015.34 $25,958,848.63


BY MOUTHS 0QISPAR4TIV& HGUHBS FOR IERAHSIT DSPABTIMT MI23B5KAPOLIS OliLI

Dally Average Humber of Transit letters

Daily Average Sfuniber of Transit Letters

received sent

1935 1934 1935

January 1,179 1.389 s§2February 1,236 1,418 s6o&arch 1,224 1,412 856 .April 1.871 1.337 837Hay 1.260 1.276June 1.191 1,226July 1,186 1,257 862 -

August 1,168 1.250 869September 1,304 1.265 902October 1.265 l,24l S99Hovember 1,327 1,121 894December

. . 1*32.2 .1,24s 882

Daily Average A11 Other Items sent

Daily Average 2?usiber of Return Items Handled

Daily Average Transit Items sent? direct "fay oar Member Banks

Average lay

Months 1.2^5 1.2S?

Daily Average Clearing Items Returned Unpaid

193i 1921 12iL u s . la i i M 1251

900896693S90

8Sm90s90s390921886

73,296 36,220 79«“*24 C3f 69U 86,762 ©,769 80,59973.51533,01986,86393.99S

-58,721

9^.320100 ,w6 90.35673.7S069.81069.93973.65074,155S1.795ei,4s5

91.99788.664

715728682751777811S9282784gS52869gits

7b477U

7587357087297^5639752766808

H i ..

3.7to3.8673*6623.9603.9944,0573,9683.74o4,1044,275

4*635.

3.3443.488

3.3903.6303>5663,7013,7133.4523.5833.9033,7621099.

866 S95 8 ,990 82,533 600 750

Daily Average Clearing Items Missent

Daily Average Out-of Town Items Mis sent

Daily Average limber of Drafts Seceived in Other Ttei Twin City Ksohansre

4,032 3 .6UU

Daily Average Humber of Employees____

January 2k 2S IS 1*7 21 25 139February 25 32 15 32

22 30 mMarch 19 31 21 26 22 23 ibjApril 19 28 26 21 28 IS ikkMay 22 27 zk 19 27 21 1U6June 20 26 19 IS 21 19 156July 23 20 22 20 25 20 15aAugust 20 23 22 1 17 19 151September 22 2? 21 IS 22 27 150October 23 24 20 22 17 22 150November 22 26 IS 19 13 20 140December 22 • 2 21 XL 1G 16 142Average *&y Months 22 26 20 23 21 22 lUg

1521501561%

152154155153150 161iHG

151

76.5275.9165.355S*3l

59.4360.616 . SU 64.7065.0961.9767.06

11*56.

66.

73.5373.8276.4269. SO 70.11 69. 8672.54 78.18 73.28 69.56 71.58

73.


HON-OASH CQLLEGTIOH fUMCTIOH "^Minneapolis Only)

The volume of non-cash collection items handled during

1935 showed a substantial increase over the previous year, are

handled 748,,488 items payable in Minneapolis as coraoared to 648,172

in 1934o This represents an increase of 1Q0?Q00 items or apnroximate-

Xy 15,5 per cent* The value of city items handled in 1935 was

#326,796,000 in comparison with #304,779,000 in the previous year*,

the increase being over $33 ,000?000* Drafts drawn on local grain

firms constitute the greater part of our city collections.

The number of country collection items handled increased

from 63,856 in 1934 to 69 *033 during the nast year. The value of

country items handled in 1934 was 138^846^000 as compared to

#59t058e000 in 1935, T^is represents an increase of 9 08£in number

of items and 52% in amount over the previous year*

Couoon and security collections (other than U, S.

government coupons and securities) numbered 53,379 items valued at

#34 488P 000 in comparison with 50^.954 items amounting to $35,504,000

handled during 1934; an increase of 2 ?435 items and #8P984^000 in

amount*

A comparative statement of the number of items handled

by months during the past two years is given below?

COMPARISON OF KUMBSR OF ITEMS RECEIVED FOR COLLECTION

City Collections_______ Country Collections_______ Security Collections1935 1934 1935 1934 1935 1934

January 29*140 50,604 ' 4,785 5,674 4,292 4,186February 27,942 43,945 4,825 5,002 3,380 3,050March 29,285 46,611 4,87? 5,775 4,093 4,094April 33,074 43,600 4,733 4,838 4,367 4,472Itfay 36,891 50o246 4,841 4,992 4,228 4,183June 33,743 52,581 5,122 5,153 6,22? 5,724July 40,114 48,62? 5,198 4,926 4,100 4,181August 83,476 82,784 5,454 5,383 4,968 2,920September 150,348 80,223 6,972 5,031 3,912 3,763October 141,172 63,321 8,072 5,694 3,742 3,910November 81,644 45,136 7,371 5,148 3,920 4,183December 61 * 659 40.494 6,773 5.232 6.150 6,288

Total 748,488 648,172 690023 62»856 53,379i 50,954

Amount (000) omitted

1935 $ 226,796 $ 59,058 $ 34,4881934 2040779 380846 25,504


SECURXTX&S - SAFEKEKPX&G (Minneapolis Only)

The safekeeping of securities as herein referred to com

prise© the custody of securities held in safekeeping for member banks*

including securities of member banks pledged to secure State* County

and other public deposits* or deposited for account of U, Q0 Government

officials; United States savings bonds held for individuals; se

curities held for Public ’forks Administration* and for the Reconstruction

Finance Corporation; securities held as collateral to War Loan Deposits,

and to discounts, rediscounts and industrial advances*

All readily negotiable securities held by our Helena Branch

were transferred to Head Office during December and member banks

situated in the State of Montana were notified that transactions of

this nature would be handled by the Minneapolis office until further

notice.

The control value of securities held in safekeeping and

for collateral purposes on December 31p 1935 was <$373,389,859 in com*

parison with $344*013,818 held on December 31, 1934, During the year

1S35 we received 131,038 items and delivered 113 ,038 ,resulting in an

increase of 7^990 pieces held., In 1934 we received 141,061 pieces

and delivered 9??874„

We clip maturing coupons from securities held in our

custody, enter them for collection, and credit proceeds to the

owners account; except that in certain cases the maturing coupons

are forwarded to the owners* The number of coupons clipoed during

1935 ^ae 381,687 as compared to 365,912 in the previous year.,

COMPARATIVE STATEMENT OF SECURITIES HELD DECEMBER 31o 1935 and 1934

Dec* 31,1935 Dec, 31,1934Securities held in safekeeping for members?

Uo So Government securities #132,743,950 4117*109*500 Miscellaneous securities 105,793^610 95,130*713 Securities pledged to secure public deposits 74,956*545 63*057,639

Uo Ss Savings bonds held for individuals 552"000 ' 0 Securities held for U* Govt* officials 13,5781000 0

" " H Public Works Administration 3'845*259 3,892,334 iX “ reconstruction finance Corp,t 48,270*157 51,707,645

Collateral to War Loan Deposits 4 ,314 ,250 13,,436,175 41 Discounts, Rediscounts and in

dustrial advances 337^088 689,810

Total . |3?3 ,389,859 #344,013,816


CURR&.t\tCy AND CQIM (Minneaoolis On1y )

Currency receipts from member and non-member banks totaled

1135.975.000 during 1835 in comparison with $157,261,000 during the

previous year, an increase of $9 ,714 ,000o also received

$16 ,983e000 of our Federal Reserve notes, fit for further circulation

from other Federal Reserve Banks* The total number of bills received

a d counted was 42,813,745 as compared to 41^015^410 in 1934* The

number of Dills received and counted include deposits received over

the counter* shipments received from member and non-member banks* and

shipments of fit notes from other federal reserve banks; it does not

include shipments of new money from the Treasury Department, nor

money received from the federal .reserve Agent, either new or fit .

We made 1,480 payments totaling $109*709*000 to banks in the

Twin Cities and sent out 21*796 shipments amounting to 177,314,000 to

country banks* Total payments to member and non«member banks there-

fore,, amounted to $187*023,000 ae compared to $177,857*000 in 1934,.

Receipts of silver and minor coin from banks in our district

totaled #2*596,000 which is nearly $376*000 more than the amount re

ceived during the previous year. The number of shipments of coin

sent to banks in our district during the year was 7*508 and the amount

| 2 p82,0,000o In 1934 we sent out 8*003 shipments totaling $3,319,000*

During the past year we received #910,000 in silver and minor

coin from the Denver mint and $75,000 from the Philadelphia mint. In

addition to the payments made to member and non^member banks we shipped

1150.000 to our Helena Branch and $50*000 to federal Reserve Bank of

Chicago in accordance with Treasury Department instructions* We also

shipped #473*510 in uncurrent coins to the Denver mint..

At the close of 1934 we held gold coin amounting to #947,360*50

(old value) and $103<,390 gold certificates in our custody for account

of the Treasurer of the United States* During 1935 we received

$479904*50 in gold coin and #458,730 in gold certificates* The daily

receipts are charged to the Treasurer of the United states and held

in our custody until the Treasury Department issues shipping in

structions JoId coin amounting to $953,703 was forwarded by us to

the Denver Mint, and $507,580 in gold certificates to the Treasury

Department, leaving $42,562 in coin and #54*530 in certificates in

our custody at the end of the year, (JJDigitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

HUMBER AND AMOUNT OF CURRENCY SHIPMENTS RECEIVED FROM AND SHIPPED TO MEMBElf AND KOK^MBMBBa/BAHKS BY MONTHS 1935

t&inneapolio Only)

CURRENCY AMD COIN

CURRENCY RECEIPTS

Other Member andCity Member Banks Non-Member Banks

Number NumberShipments Amount Sfti-Dments Amount

January 291 $ 8,790,500 1,162 $ 4,800,793February 230 7,276,900 813 2,668,700Search 300 9,096,100 1,126 4,007,586April 288 8,895,505 1,062 4,387,593May 289 9,381,600 1,228 5,245,627June 276 9,329,200 1,306 5,741,500July 297 8,963,400 1,314 6,493,800August 305 8,119,300 1,232 5,469,575September 271 8,616,140 968 4,250,520October 296 11,080,600 1,2674 5,871,730November 272 8,620,000 541 4,238,906

December 314 __9,716,400 1,166 5.913,200

Total 3,429 $ 107,885,645 13,585 $ 59,089,530

CURRENCY SHIPMENTSI

Other Member andCity Member Banks Non»Member Banks

Number NumberShipments Amount Shipments Amount

January 109 $ 6,851,000 1,219 $ 3,897,046February 122 8,357,600 1,810 6,009,917

March 124 7,891,500 1,624 5,186,327April 127 9,918,000 2,014 6,976,545

May 131 9,899,000 . 1,990 6,786,815June 114 8,860,000 1,542 5,416,389July 112 7,994,000 1,418 4,383,200August 129 10,126,000 1,892 7,493,000September 129 10,100,500 2,353 8,595,395October 134 10,380,000 2,009 7,300,512November 121 9,668,000 1,873 7,747,400December 128 ...... 9.664.00Q 2,052 7,521.250

Total 1,480 $ 109,709,600 21,796 $ 77,313,796

COIN HECEIFPS COIN SHIPMENTSMember and Member andNon-Member Banks Non~Member Banks

Number NumberShipments Amount Shipments Amount

January 307 $ 420,787 275 $ 116,500February 98 155,424 416 142,918Search 129 178,010 507 196,502April 99 119,886 607 242 r 659

May 120 146,516 784 299,168June 173 2060881 739 280,760

July 177 261,237 831 278,859August 212 318,128 807 317,081

September 161 233,115 727 272,930October 173 210,888 647 231,446

November 137 173,771 575 208,023December 141 171.412 591 223.546

Total 1*927 $ 2,596,055 7,506 $ 2,810,392


FEDERAL hJfiSJBKVS flQTES

On December 31* 1S35 the Agent’ s records snowed that our

notes to the amount of #115,463,305 were outstanding,, As the Ban*

held #41901y000 of these notes, the net circulation was $110,563^000

which was an increase oi #3,875*000 over the amount in circulation

on December 31s 1934„ At no time during the first nine month© of

1935 was the circulation in excess of the amount shown at the close

of 1934, In October, November and. December, demand increased and

our note issue expanded $5*100*000»

With respect to notes issued to the Bank by the Agent, it

will be noted in the accompanying tables -that only $600*000 in 5" s

was issued and all of the issue was in used money* During the

previous year $48*400*000 of notes had. been obtained from the Agent

by the Bank and the proportion of 5 8s was #13^230 >,000* After the

close of July 1934 we paid, out new legal tender 5 }s for the balance

of 1934 to the amount of ft5P820p000.,

On December 31, 1934 we had on hand ^7^244*000 of legal 5 #s

practically all new., During 1S35 we received 411^,680,000 in legals

and #3S780*000 in silver certificate 5*s and 1 0 's which we issued

in lieu of our notes.-, The substitution of these notes conserved

our own supply and lessened printing orders for the denominations

which are used the most.. Had this suoply of other paper money not

been available*, our requisitions to the Agent for notes In 1935

would have amounted to $59*676,000 instead of #40$862^,000• Be

cause of the fact that but few 5 ‘5s were required from the Agent,

10*s and 30*8 requisitioned made up 90*43^ of the total federal re

serve notes issued..

In referring to the destruction schedule for our notes we

find that a higher percentage of our notes were destroyed in 1935

in proportion to notes Issued than for any other year since the

larger size notes were replaced by notes of the present size, At

the close of the year the amount of the large size notes still out*

standing was $3 ,285s855t, a decrease of $494g500 during the year.,


JTJSDEhAh KSSShVS ffOI&S ( 0on td )

Attention is drawn to the fact that of the #115,463f305 in notes

outstanding only #4?921f525 consists of 5 8e<, borne idea may be ob

tained of the life of bills of this denomination when it is mentioned

that $9 ,000 ,000 less in 5*s was outstanding than one year a,go and

$7 ,800 ,000 of this amount represented 5 °e destroyed*

On December 31, 1935 the Agent held #60,355*000 of notes

available for issue and of this amount #48,080,000 was in new currency

The total in denominations of #50 and over was S44g?65,000- At a

recent conference of the Governors the Secretary of the Treasury stated

his intention of asking for authority from Congress to replace, with

out cost to the Federal reserve banks* the stock of unissued notes

of the 1928 series with notes of the 1934 series, which notes do not

bear the gold clause* Fending further instructions we are not issuing

any of the 1938 series* It is hardly likely the notes now in circu

lation will be withdrawn because of containing the gold redemption

clause,,

After July 31, 1935 all National bank notes were retired as

rapidly as presented, under Treasury instruetions* retirement of

these notes undoubtedly called more federal reserve notes into cir

culation., How much it expanded our payments has not been estimated*

We do know, howevert that we took a greater amount of notes from the

Agent during the last four months of the year than during the pre

vious eight months*

Our supply of new notes* including stock at Washington print*

ed and paid for,, is $199,980,, 000« Of this amount #98,680,000 is in

5 ss, 1051 s and 20cs» The cost of printing in 1935 was $44*534 to

which must be added $6,822«94 for transportation of #29 ?000,000 to

Minneapolis* Our estimate for note costs in 1933 is #38,000,


FEDERAL RESERVE NOTES RECEIVED AND ISSUED BY ASBNTS DURING 1935.

IN HANDS OF ACtEKT DECSMSEH 31, 1984

NEW FIT-FOR-USE TOTAL

Fives Tens Twenties Fifties Hundreds Five Hundreds Thousands

Total

$ 6,200,000 4* 880,000 5,200*000

12b400*000 10,000,000 6,200,000

5,400,000 $50,280,000

$ 210*000 650,000 340oCOO

3.400.0007.450.0001.174.0002.053.000

$15,277,000

$ 6,410,0005.530.000 5,540*000

15, 8000000 17,450,0007.374.000

__7.453,000$65,557,000

RECEIVED FROM COMPTROLLER

T O

returned by

BANKFIT-TOR-USJS

TOTALRECEIVED


Total

$ 017.000.00012.000.000

0000

$ 29,000,000

$ 1,800,0002.460.0002.300.000

0000

$ 6,550,000

$ 1,800,000 19,460,000 14,300j000

0 • 0

0 0

$ 35,560,000

ISSUED TO BAM

HEW FIT-FOR-USE TOTAL

FivesTensTwenties Fifties Hundreds Five Hundreds Thousands

Total

$ 0 18,000,000 13,200,000

0 0 0 0

$ 31,200,000

$ 600,0003.110.0002.640.000

625.0001.550.000

309.000628.000

$ 9,662,000

& 600,000 21,110,000 15,840,000

825.000 1,550,000

309.000 628>000

$ 40,862,000

IN HANDS OF AW W DECEMBER 31, 1935

FIT-FOR-USE TOTAL


Total

$ 6,200,0003.830.000 4,000,000

12,400,00010,000,0006.200.000 5,400,000

& 48,080,000 '

$ 1,410,00000

2.575.0005.900.000

865-0001.425.000

$ 12,175,000

$ 7,610,0003.880.000 4,000,000

14.975.00015.900.0007.065.0006.825.000

$ 60*255,000

RATIO CF ISSUE BY DEKOMIKATlOKS

1935 1934 1953 1932 1931

Fives 1047 25*2? 18o90 16.13 14,79

Tens 51o66 40.25 30 c. 05 30,09 36 6 87Twenties 36,76 32*31 26 0 26 32.31 34,00Fifties 2,02 o 72 5,94 3o46 2o9BHundreds 3*79 1*24 12*31 12 6 59 7 a 80Five Hundreds c76 ' 0 2*05 1.29 1,10Thousands lo54 ,21 4o49 3.63 2 a 46

100.00^ 100c00# ioo«oo$ 100c00^ loo•oof


FEDERAL RESERVE NOTES ISSUED TO RftJSK

COMPARATIVE BY MOKTHS 1935-1931

1935 1934 1933 1932 1931

January $ 1,000,000 $3,175,000 $ 3,980,000 $ 5*580,000 $ 1,150,000February 3,770,000 5,385,000 12,590,000 3,258e500 750*000March 1,984,000 4,430vGOO 35,185,000 4,210,000 1,940,000April 2,68S0000 1,940*000 1„680*000 7f340,000 2,000,000May 2,550,000 2,640,000 1s170 6 000 7,830,000 1,765,000Juae 2,300,000 2,360,000 2,160,000 4,735,000 2,315,000July 1,625,000 4,780,000 4,790,000 7,260,000 3,465,000AUgU8t 4,470,000 8,060,000 4,100,000 2,070,000 4,245,000September 6,380,000 5,250,000 7,205,000 4 ,160B00G 5,130,000October 4,660*000 3,180,000 1,940,000 3,010,000 7,815,000November 4,325,000 3,215,000 1,700,000 2,200,000 4,235,000December ___&*11QUP.QQ._ 3,985.000 5* 165,000 4.251,500 7*370,000

Total forYear $40,862,000 $48,400,000 .$81,665,000 $55,905,000

FEDERAL RESERVE TOES DESTROYED AT WASHINGTON

COMPARATIVE BY MONTHS 193£«31

$42,180,000

1935 1934 1933 1932 1931

January $ 2,920,050 $ 1,969,650 $ 1,763,650 $ 1,636,550 $ 2,363,350February 2,038,050 2,532,360 1,178,300 1,189,000 1,436,000March 2,357,250 2,503,550 1,107,100 1,569,950 1,756,985April 2,326,850 3,172,550 1,540,410 1,447,345 1,530,100May 2,640,200 3,1200000 2,451t100 2,025,050 1.567*750Juae 2*237,650 2,497,150 1,513,050 1,419,260 1,173,600July 2,894,800 2,930,250 1,990,250 l v579,850 1,863,500Au^uet 2,282,275 2,157,950 2,769,400 1,970,500 1,426,350September 2,754,400 2,604,450 1,854,350 1,511,500 1,549,100October 2,833,050 2,872,980 2,598,500 2,281,500 1,494,850November 2,671,650 2,674,200 2,463,800 1,671,150 1,905,160December 2.321.550 2,432.850 2*129*550 1*593.175 1 * 529»250

Total forYear $30,277,775 $31,467,940 $23,359,460 $19,894,830 $19,596,995

FEDERAL HESSRVE NOTES ISSUED AHD PSSTBOYEP SINCE ORGANIZATION

Igeued to Destroyed atBank Taahipgton

1914 $ 260t000 $ 01915 13,742,000 01916 9,880,000 895,9551917 42,230,000 8,988,0951918 57e140,000 9,421,5401919 39,990,000 36,771,8051920 39,450,000 40,766,7851921 39*265,000 49,748,58019 22 43,360,000 32,784,3201923 40,205,000 27,320*3301924 52*030,000 28,173,3951925 44,330,500 30,108,3551926 46,702,000 31,835,9501927 36,694,500 23,970,3351928 40,015,000 26,808,0351929 73,754,000 55,134.9501930 39F052,000 43,217,2651931 42,180,000 19e 595,9951932 55,905,000 19,894,8301933 81„665,000 23,359 c 4601934 48 {, 400,000 315467,9401936 40.-862.000 30,277,775TOTAL $ 927,112,000 $ bio, m i,69b

V 7 0


ISSUE. BE IS SUE AKD DESTRUCTION OF ROSHAL I&SSR7B KQTSSsihcs onwvm or bank as op December gi, 1935.

FivesTensTwenties Fifties Hundreds Five Hundreds Thousands

Total

Received from Comptroller

$ 196c400,000 238,760,000 218c000,000 27,800 , 000 41,200*000 10,900,000 13P200n000

$"746,260f000

ISSUED TO BAM

Returned to Agent by bank

$ 41,635,000 79£340000032.020.0009.765.000

17.735.0002.529.0008.083.000

Total

$ 238,035,000 318,100*000 300,020,00037.565.00058.935.00013.429.00021.283.000

$ 241,107,000 $ 987,367,000

FivesTensTwentiesFiftiesHundredsFive HundredsThousands

flew

$ 190„200o000 234,880P000 214,000,000

15,400,000 31a200,0004.700.0007.800.000

FiWFor^Use

40.225.00079.340.00082.020.000 7,190*000

11,835,0002.079.0006.243.000

Total

$ 230,426,000314.220.000296.020.00022.590.00043.035.000

6,779,00014.043.000

Total $ 228,932,000 $ 927,112,000

DESTROYED AT WASHINGTON


Returned by Agent

$4,260,000 2* 545,000 1,020,000

25.00030.000

0 0

Returned by Treasurer

Heturned by innea-DQlis

Returned by other Ved.Heso flanks Total

$ 4,475,945 $ 96,057,0005,718,990 5,418,240

477,300 905,600117.000187.000

99.662.00073.024.000 5,290*000 7,680 n 000 1,485,500 1,909,000

$ 79,075,530 85,733,440 84,222,300 3,637,550 5,780*300

784,000 1,021,000

$ 183,868,475

193,659,430 163,684,540

9,429,850 14,395,900 2,386,500 3,117,000

Total $ 7C880S000 $ 17,300,075 $285,107,500 $ 260,254,120 $ 570,541,695

FivesTensTwentiesFiftiesHundredsFive HundredsThousands

In hands of AgentDecember 31, 1935

$ 7,610,0003.880.000 4,000,000

14.975.00015.900.0007.065.0006.825.000

Outstanding December 31» 1935

$ 4,921,525 41,220,570 50,315,460 3,395,150

10,904,100 1.448,500 3,258,000

Total $ 60,255,000


KE&EKVE POSXYIOM

On December 31, 1935 total reserves amounted to

§145,513,000 and a decrease of &5,957,,000 since the close of the

previous yearc This total of reserves applied to our deposits

and net circulation combined gave us a percentage of'68o8 com~

pared to 71* on December 31, 1934„ This was a reflection of the

change in earning assets during the year rather chan from other

causes»

Deoosit totals of $107,139,000 at the close of 1S35 showed

an increase of #418.,000 over the total held a year previous*

figured on a daily .average basis the December 1935 average of member

bank balances was $104,326,000 compared to $103,189,000 in December

1934„ .in only two months during 1935 was the daily average below

#100*000,000 while December alone of the 1934 months had a daily

average in excess of that figure, The daily average of member bank

balances for all of 1935 was $105,945,000 compared to $78*323,000

for 1934*

Temporary deposits in the nature of officers8 checks and

deposits of funds of the Treasury and non-member clearing banks

range from $8 ,000 ,000 to #14,000,000 and were #11,000,000 on

December 31, 1935c Qur member bank balances came from 433 National

banks and 68 state bank members, with totals on December 31.. 1935,

83$ in excess of the required reserve,, Twenty-nine State non-member

banks had clearing accounts of 848,000 at the year end* The

high total for member balances during the year was $129,455,360

on July 10* A considerable volume of deposits was withdrawn from

large Eastern correspondent banks and placed with Federal reserve

banks so that these correspondent banks might have a more favorable

total upon which to figure the payment to the Federal Deposit in

surance Corporation*

Qur circulation did not fluctuate sufficiently during the

year to have much effect on our reserve position. Collateral held

by the Agent has been almost entirely gold certificates which also

serves as reserve. Fluctuation in the bonds held by the Agent as


RESERVE P O S IT IO N (Contd)

collateral is frequently the result of large transfers of funds

through the Inter-district Settlement i<Und* We are only allowed

a working balance of 115*000,000 in "free gold '1 and when this

amount is exceeded, we withdraw bonds from the Agent and turn

over the equivalent in gold certificates® Governments pledged

at the close of the year as collateral amounted to #1 0 .,000, 0 0 0 ,

With practically no change in deposits since 1934 and

only a small expansion in circulation* the increased holdings of

Governments in System account was the only element of importance

entering our reserve ratio., Our investments in these securities

increased $1.0*000SQ0Q and. were #68#053f500 on December 31r 1935«

The low mark of our reserve percentage during the past two months

was 6808 on December 31« The percentage for the combined banks

was 77e6 on the same date*


DAILY AVERAGE BAM aSSERVE balance by biokths

Minneapolis and Helena Combined

1935 19 34

w actuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember

$ 103, 99,

100, 96,

101, 112*

118,

115. 104, 106, ice,104,

039.000008o000891.000262.000 56?r000 989o000338.000134.000 947f 000020.000 22? 6 000 226*000

60.477.000 59* 747c00060.361.00068.693.00065.607.000 68 p 1601,000 73,940800085.406.00092.903.00093.805.000 98,240f000

102,189t000

Daily average member bank; balances, Minneapolis and Helena 1935n «< « « ii h » « 1 9 3 4

ii i< i i » if »i i i » 1 9 3 3

h m « ti ti ii »i ii 1932« ii m »i i i m ii i i 1 9 3 1

105,945*00078.323.00047.306.000 40e094,00048.050.000

MEMBER .BAM RESERVE BALANCE FLUCTUATIONS

HIGH LOW

Minneapolis Only July 10,1935 $117,052,551. Minneapolis Only ?fey 2,1935 $74,139,585. Helena*Only Oet, 12,1935 20,325,823. Helena Only Jan,4,1935 .10*019,015,CombinedCombined

July 101,1935 129,455,360, Combined Deco 13,1934 109,004,803c Combined

May 2,1935 86,453,913.. Jan o2911934 54,794 .833

COMPARISON OF MEMBER AND NOK-MEMBER BANK BAUM CSS AS 0? DECEMBER 31. 1935-1934-1933-1932-1931

(Thousands only 000 omitted)

1935 1934 1933 1332 1931

Michigan $ 3,485 $ 3,403 $ 3,635 $ 2,019 % 2,500Minnesota 58„772 68,750 43,404 23,289 30,162Montana 17,068 11,121 7,160 5,521 5,587

KOc Dakota 6,137 3,893 3,398 2,175 2,807

Soo Dakota 7,297 6,869 3,613 2,490 2*955Wisconsin 3,459 3,385 3,120 2,266 1,816

$ 96,228 $ 97,421 $ 64,330 $ 37,760 $ 45,827

DEFICIENT RESERVE PSKAITIKS

Minneapolis Helena Combined Combined1935 1935 1935 1934__

Total penalties for 1935 $ 313*27 $ 80»92 $ 394*19 $ 1,212,65Humber of banke penalized 34 3 3 78Maximum penalty rate bf, 4tj$ 5$ 5^#


ThAHSFJSR M D CODING D&PAHTuEST THnHeapoTTi Only')""’

The Transfer Department handled 32,844 transfers amount

ing to $1, 443,484,000 during 1935 as compared to 34,198 transfers

totaling #1,537,801,000 in 1934, This reoresents a decrease of

11,354 in number of transaction© handled and $94,317,000 in amount.

Transfers to the Treasurer of the United states for credit

to the Five Per Gent Redemption i*und of Rational Banks during 1835

were 3,830 in number and amounted to 12 ,243 ,000 in comparison with

9 .438 transfers amounting to $9.,809s000 during the previous year,

The retirement of National Bank Sote circulation by all banits during

the year resulted in the discontinuance of five Per Gent Redemption

fund transfers in Juneo

Transfers other than for the Five ?er Cent Redemotion J?“und

of National Banks numbered 20,0X4 totaling #1,44!*235,000 in 1935

as compared to 24,773 transfers amounting to #1,528,193,,000 during

1934*

The number and amount of incoming and outgoing wire transfers

handled during the years 1935, 1934, 1933 and 1932 were as follows *

Outgoing Wire Transfers Incoming ”rire TransfersIf ear Humber Amount Humber Amount

1935193419331932

5,888 5,332 6 ? 1847,424

$ 344 p 734 , 000338.778.000420.027.000 418, 578 j, 000

5,870 6,733 9..461

XO '567

# 734,432,000758.917.000967.900.000834.915.000

Messages coded and decoded during 1935 other than transfers

were 18,713 as comoared to 19,170 in 1934*

TELEGRAPH PMIT (Minneapolis Only)

• During 1935 the number of words sent over the private *?ire

from this office were 535,980, an increase of 68,937 words over

1934 when 457,053 words ^ere sent.. There were 14,426 messages

sent over the private wire during 1935 and 17,799 messages received,

7 5


A u m n m

The Auditing Department makes periodic audits of the

various departments of the bank* Warning's and accruals are proved

and verified to the control accounts,, Expense items are inspected,

listed and verified to the expense accounts.. Requests for pur

chases of equipment or supplies are placed on requisitions and

referred to the Controller for approval« Uo purchase is authorised

until the need is established and price considered satisfactory«

The Auditing Department obtains receipts from consignees for all

outgoing shipments of cash and securities* The Minneapolis Post

office furnishes us with a duplicate record of registered mail

packages delivered to our bank and the record of each paclcage is

checked to the point of receipt by the operating departments** A

weekly test of credits for currency and coin shipments received is

made by checking the record of incoming shipments to the credit

entries to determine that each shipment ie credited on date of

receipt* This check is made to detect any possible “lapping” of

credits* Shipments of U» Sc Government coupons received for credit

are likewise checked one day each week* A duplicate record of

securities deposited with ue for safekeeping or for collateral

purposes is maintained and any changes in the accounts are checked

'syith the custody department!1 s records and to the memorandum control

accounts each day* Receipts are obtained from consignees for all

securities delivered* Deliveries of securities from our Fiscal

Agency division are checked to the stock records daily and receipts

are obtained from the consignees,, Subscriptions to new issues of

United States Government securities are checked to see if each sub

scription was handled in accordance with Treasury. Department regu

lations and without discrimination between subscriberg. Member and

non-member bank accounts are reconciled monthly; any exceptions

shown on the statements are followed through for proper adjustment«

All requests received from examiners ana other supervising

authorities for verification of lists of notes or securities held

in our custodyf reconcilements of accounts* etc*, are handled by

the Auditing Department*


AUDIIINu PEPAhTttiCMT (Contd}

In addition to the audits conducted at dead office,

two examinations of our Helena Branch were made during the year?

the first as of February 14 and the second as of October 10p 1935..

Reoorts of audits conducted are rendered to the

Chairman of the Executive Committee,^ith copy to the Controller.


K£POKT OF BANK AflD PUBLIC uflLATIONS ACTXVXTXHS AYFEDERAL RESKhVE BAMK OF MINNEAPOLIS

DUHim 1935

Twenty bank officers and other representatives traveled

?3f?00 miles on public relations work during 1935, at a travel

cost of $6 ,410 0 38, They attended 7 bankers8 conventions and

39 other meetings* delivered 36 addresses, and made 78? visits

at member banks and 809 visits at non-member banks in the

district., Practically every bank in the district was visited

at least once during the year*

A talking moving picture* showing the operations of this

Federal ne serve Bank,, was produced during the summer of 1935,

and public showings began in November* The attendance at show

ings of the movie during 1935 was 22,268 people* Three portable

outfits and two theater~type films were used in making these

showingSo

The Board of Directors of this bank visited the Helena

Branch in July and attended the annual o'onvention of the Montana

Bankers Association at Glacier Park*

Twelve issues of the Monthly Review were printed and

distributed to a mailing list which s In December, consisted of

7,500 names.


BANK BXA^IKATIQS DIv-Vl RTSs K;4T

Each State member bank of the Hinth Federal Reserve District ha? been examined at least once daring 1935 by examiners for the Federal Reserve Bank; of Minneapolis except the State Bank of Gibbon* The State examiners made an examination of the State Bank of G-ibbon on May 25* 1935 and our examiners did not participate, nor old our examiners participate in the examination made as of

December 7, 1935, as such bank had made application to withdraw from membership in the System and had requested the Board at Washington to waive the usual six months* notice* An examiner for the Federal Deposit Insurance Corporation

joined the State examiners in the examination made December ?s 1935* The bank

at Gibbon desires to continue as a non-member insured bank when its membership in the System is terminated.

There are ten State member banks that are exercising trust powers and the trust examiner conducted twelve examinations of trust departments of State member banks during 1935* There are ninety-seven national banks that have full

or limited tract powers and fifty-t^o of those banics are exercising trust powers• The trust examiner has not examined the trust departments of national banks during

1935 except in one instance, when an examination was made at the request of the board of directors of the national bank, and the examination was made with the ap

proval of the Chief National Examiner of this District. The trust examiner reviews the reports of trust departments which are attached to the national examiner" reports* One hundred fifty-six such reports were reviewed during the year.

Three applications by national ban].cs for fiduciary powers were received during 1935 0 One application was granted and two denied* Trust powers of seven national banks were surrendered during the year«

The examinations by this Department in the various States were as follows?

State Banks Michigan . * 8Minnesota 15Montana • • • « • • • • 28 South Dakota o . . « - » 31 Wisconsin , B . , « . 2

84

Summary of Examinations and Special Visits

fcxaminer

John Carlander W. Jo Stutzraan H« Gr. McConnell A. t* Mills T, H6 Hodgson

Examined for Membership

SpecialVisits Assisted

«■»

77

3(b)

MilesTraveled

9,05014,0293,209

7437,217

Assistant Examiner Jo B, Johnson H0 C* Jones C. J * 'Larson

57

511

14,7372,3472,393

itxaminersa ClerkC. Wo Oroth ^ __6 1,612

1 95 4 93 55,337

(a) Trust examinations«(b) One special trust examinations two investigations in connection with appli

cations for trust powers *

Examiner St\itzmaa and Assistant Examiner Johnson devote practically ail of their time to bank examination worke, Examiners McConnell and Carlander and Assistant Examiner Jones spend considerable time with the Industrial Loan Department, and such time has been charged to that function. Examiner Kills is department Office Manager and makes examinations only occasionally (two during the past year)


BANK mKISATIOK DEPABffifflT (Contd)

Examination of Holding Cotr.ga.ny Affiliates.

Jio examinations were made of holding company affiliates during the year* Additional information was accumulated and forwarded to the Board at Washington, however, with reference to applications on file. Holding company affiliate relationships have been terminated with respect to all holding companies in the District except the First Bank Stock Corporation* Northwest Bancorporation, and Banksnares Corporation#

STATE 3AM APPLICATIONS FOR MEMBERSHIP - 1936.

Two applications were received from State banks in this District for membership in the Federal Reserve System* The applications were from the First State Bank of Libby, Libby, Montana, and The M&nistique Bank* Vfenistique,Michigan^ The First State Bank of Libby tsas examined as of August 6, 1935, the application was approved by the Board at Washington on September 23, 1935, and membership m.s completed as of October 3, 19350 An examination of The Manistique Bank commenced on January ?» 1936* The examiner’s report has not yet been re

ceived by this officec

Status of Applications for Membership Which ^ere on Hand December 51, 1934.

Total number on hand » • • • • • * . » * * * . • » • . o 7

Admitted to membership 0Held in abeyance pending increase in capital stock

or elimination of criticised assets . . ............... ... 6Held in abeyance pending discontinuance of branch e 1 7

Status of Applications for ^eabershin Received During 1936

Total number received « . . ...................... ... 2

Admitted to membership . . .................. . . . . . . 1Incomplete 6 « e e o o 6 a o . » » * » » . ® » « . o i 1 2

OFFICE WORK

Reports of Examination of National Bangs

Number of reports received from the Chief National Bank Examiner’s Office . a 876 (The cost of these reports aggregated $4,380*00 for the calendar year*)

Eighty-nine (89) duplicate copies of the reports of examination of Montana national banks were received from the Chief Examiner's Office, and the cost of those additional copies aggregated $200*25 for the year.

Reports of Examination of State Member Banks

The number of reports of examination received from the various State Banking Departments in the ftinth District, of State member banks examined independently by them, was as followsg

Minnesota * » ® . . , . * 17 :■ ontana a . . . . . . . . 3South D a k o t a ................... 1

Reports of all examinations made by examiners for the Federal Reserve Bank of banks in the Ninth District were typewritten in this office. One copy was formrded to the Board at Washington, one copy retained for our files, one copy sent to the bank examined, and one copy forwarded to the State Banking Department. The confidential section is not attached to the copy of the report sent to the bank nor attached to the copy sent to the State supervising authorities. Copies of reports of examination of all State member banks of Montana are sent to the Helena Branch* Analyses of reports of examination of all State member banks rrade


3AKK SX^IlSATloy {Contd)

by examiners for the Federal Reserve Bank and reports of independent ejoami nations made by State authorities are made on either the revised Form 212 or Form 213* Such analyses are forwarded to the Board at Washington,, These analysis forme set forth important facts and figures pertaining to the condition of the hank? also much general information? and conclude with a recommendation as to what action, if an/* should he taken, by the. Board of Governors of the Federal Reserve System, together with the reasons therefor, which reconsnendations are made by the Federal Reserve Agent and concurred in by the Governor#

In connection with applications of State banks for membership in the Federal Reserve System, one copy of the examiner *s report is forwarded to the

Board of Governors of the Federal Reserve System, together with all legal papers in connection with the organization or reorganization of the applicant banke The

Board at Washington is alno furnished, in each instance, with a complete memorandum covering the organisation, management, location, and condition of the applying bank.

All examination .reports* both State and national* were analyzed on comparative analysis sheets, one copy being furnished Governor Geery, one copy to Deputy Governor 'faeger, end one to Deputy Governor Ziemers These sheets contain

a general statement as to the condition of the bank; also a brief summary of

the examiner1?. conclusions,, ■ :*

vfhen State member banks are shown by reports of examination to be in an

unsafe or unsatisfactory conditionf special letters are written either to the bank or to the State supervising authorities, calling attention to the unsatis-

factory and criticised niatters, with a request or direction that corrective action

be taken. Conferences are held with those at interest in cases where such action

appeared desirable and constructive.

Reports of Earnings and Dividends, Tienorts of Condition, and Related Reports.

Approximately 5,48?, reports of earnings and dividends, reports of condition, and related reports were received, checked, and recorded.

Applications for Permission to Exercise Fiduciary Powers Approved, etc,

The following application for permission to exercise fiduciary powers vsas approved by the Board at Washington during 1935s

ApprovalName of Bank location Effective Capital PowersThe Miners National Bank of Butte Butte, Montana 4*30®35 $100,000 Full

Applications of two banks, namely, Miners First National Bank, Ishpeming, Michigan, and Union National Bank, Superior, Wisconsin, were received during the year and were forwarded for approval to the Board at Washington, Both applications for permission to exercise fiduciary powers, however, were denied*

The following applications for surrender of fiduciary powers were approved during 1935s :

Date of DateName of Bank location Application Approved

First National Bank Calumet, Michigan 12-1-34 7-5-35First National Bank Hancock, Michigan 10-20-34 3-5-35First National Bank Laurium, Michigan 10-25-34 3*-8-3SFreeborn County National Bank Albert Lea, Minnesota 10-9-34 2-15-35Austin National Bank Austin, Minnesota 9-13-34 2-1&-35First National Bank Blooming Prairie,Minn« 6- -34 3-11-36James River National Bank Jamestown, North 'Dakota .10-3-34 1-22-35

Summary o* Applications Made Under the Clayton Act - 19g£

New Applications received and forwarded to the Board ...................... 17Applications to amend permit by adding office of director or

officer .................................................................. ... ..................... 4 21

8 1


BAM EXAaEIMTIOH PjSPAgJMBMT (Cootfi)

Applicants receiving permits (ne s?) « ..................................... ... . „ * 43 *Amended permits issued to include additional service as director

or officer . e « . „ . . • . * * ............................. ..................... 4 47

Applications in hands of Federal Reserve Agent, notas yet forwarded to the Board . . . ...................... ... , . . , . 0 3

Applications received and forwarded to the Board, for wfrichpermits have not as yet been issued ........................................ ... .......... None

Summary of App.ll cat ions Wade Under Section 35 of the Banking Act of 1953

Applications received ....................................................... ..................... ............ BoneApplications in hands of the Board « • • ..................................................... NonePermits granted » . ......................................................................... . Hone

(* Tro of these are amended permits including service to additional bank*)

During the year 253 applications for adjustment of stockholdings of the Federal Reserve Bank were received from member banks„ Coromencing on August 28, 1935, applications for cancellation of stock were not submitted to the Board at Washington for approval, and at present the only applications which are forwarded to the Board are those Tvhich have to do with applications of State hanks for admission to membership or withdrawal from membership*

Applications for National Charters

Only one application for a national bank charter was referred to this office for recommendation during the year, and that bank was granted a charter on April 30, 1935c

Reports to Board of Governors of the federal Reserve System on Changes in Banlcc» Status, etc,

Weekly reports are forwarded to the Board at Washington showing changes in the status of all State and National banks in the District, Records are also maintained and weekly reports sent to the Board with reference to status of applications received from State banks for membership in the Federal Reserve System*

The Examination Department handles correspondence and inquiries with reference to the Board’s Regulation T and prepares and forwards to the Board at Washington consolidated statements of those firms belonging to national securities exchanges where the home office of such firms is within this District*The Department maintains a record of non-member State banks that have signed agreements ixi conformity with Regulation To

BAKK CHAK3ES IN 1935 (Per Stock Book Records)

Total number of member banks in the District January 1, 1 9 3 6 ................... 530New national banks organized • ............................................ .......................... 1State banks admitted.......................................................... ... e . . . . . . * _____1

532

Kational banks absorbed by other national banks • • » . ' • • • • * 8 Kational banks absorbed by non-member State institutions * » . . « 4 National banks consolidated with other national banks ♦ * . * « . S Kational banks succeeded by non^member State institutions 9 • * „ 4National banks liquidated • « « . » ............... ... 4State member banks absorbed by national banks . * .......................... 1State member bank withdrawals ...........................................................»____ 1 31

Total number of member banks holding stock in the FederalReserve Bank of Minneapolis at the end of the y e a r .................. ... 501


BANK EXAMINATION DEPARTMENT (Contd)

At the close of the year there - ere 501 member banks in this District* a a compared with 530 member banks at the beginning of the year* There *as a net. loss of £8 national banks and a net loss of 1 State bank* The total membership at the close of the year v&a divided into 433 national banks and 6S State banks.,

StTgck in the Federal Reserve Bank Issued to Heir Member BanksNo» of Shares

Name of Bank Location SubscribedThe Miners National Bank of Butte Butt®, Montana SSFirst State Bank of Libby Libby* Montana 23

State Bank Membership According to States

No0 of StateNo«of State Banks Withdra'tf- No. of State No* of StateBank Members ing from Member Banks Admitted Bank Members

State 1-1-35 ship During Year During Year 12-31-35

Michigan 7 0 0 7

Minnesota 17 2 0 15Montana 20 0 I 21North Dakota 0 0 0 0South Dakota 23 0 0 23Wisconsin 2 0 0 . ___ g„.

63 2 1 68

MSM3SH BANKS SEVERING- CONNECTIONS WITH THIS FEDERAL RESERVE SANK DURING 1935

NATIONAL BANKS ABSORBED BY OTHER NATIONAL BANKS

Date1-7-36

5-31-35

4-15-35

1“ 31-35

4-23-35

5-31-35

4-22-35

7-19-35

No a of Shares Surrendered

24

12

Name of Bank LocationFirst National Bank Warble* Minnesota(Absorbed by First National Bank* Coleraine, Minnesota*)

Twin Cities National Bank St* Paul, Minnesota 72(Absorbed by The Midway National Bank,St,Paul,Minnesota.)

First National Bank of Carson, North Dakota 18(Absorbed by First National Bank, %ndan, North Dakota.)

First National Bank of Garret son* South Dakota 22(Absorbed by First National Bank in Garretson - formerly The First National Bank of Sherman, South Dakota*)

First National Bank of Grotone South Dakota 48(Absorbed by First National Bank of Aberdeen,South Dakota.)

The First National Bank of Leola, South Dakota 21(Absorbed by Aberdeen Nat*1 Bk0& Tr*Co„♦Aberdeen, South Dakota.)

Redfield National Bank Kedfisld, South Dakota 77(Absorbed by First National Bank of Aberdeen, South Dakota)

The First National Bank of Knapp* Wisconsin 18(Absorbed by The First National Bank of Baldwin,Wisconsin,,)

NATIONAL BANKS A3S0KB3SD BY NON-MEMBER STATE INSTITUTIONS

1816-35 First National Bank in Garrison, North Dakota(Absorbed by Garrison State Bank,Garrison,North Dakota - formerly Farmers State Bank of Gladstone, North Dakota*)

4-22-35 First National Bank of Makoti, North Dakota(Absorbed by Reservation State Bank* Makoti, North Dakota-)

1-31-35 First National Bank New England, North Dakota(Absorbed by Citizens State Bank, New England, North Dakota.)

£~31-35 The First National Bank of /folia, North Dakota .(Absorbed by Rolette County Bank of Bolla, North Dakota - formerly Benson County State Bank of Minnewaukan, North Dakota.)

18

27

30


m m sxamination pm.aTTOT (contd)

Date9-23-35

9-23-35 3«23-35

9—23*»«35

12-27-35

4—23— *j5 4-23“35

4— 2«5— 3«?

11-12-35

3-6-05

4-11-35

3-8-35

9-17-35

5-16-35

£-14-35

4-6-35

4-15»3S

6-3—35

HATIOKAL BANKS CONSOLIDATED WITH OrHJ-H KATIOML BAMKS

JlOo of SharesElame of Bank Location Surrendered

The I(’irst National Bank &Trust Company of Chamberlain* South Dakota

Hew First Hational Bank in Dell Rapidsc' South Dakota The Northwestern National Bank

of Madison0 South DakotaThe 'Rational Bank of Huron Hurons South Dakota

(Four banks consolidated frith Security Kational Bank & Trust Company, Sioux Falls,South Dakota,under charter of that bank and under title ♦‘Earthiest Security National Bank of Sioux Falls’* c.)

The First National Bank of Deadwood, South Dakota(Consolidated with ‘The First Hational Bank of Lead, South Dakota.,)

First National Bank in fc’obridge, South DakotaThe Farmers & Merchants

National Bank in Milbank, South DakotaFirst National Bank in Britton, South Dakota

(Three banks consolidated tfith First National Bank & Trust Cojcpany of Aberdeen, South Dakota, under charter of that bank and under title "First National Bank of Aberdeen”»)

The First National Bank of Philip* South Dakota(Consolidated ^ith The First National Bank of Bapid City,South Dakota, under charter of that bank and under title "First National Bank of Rapid City11*)

KATIQBAL BAKES SUCCESSES!) BY jHOff-MEMBSK STAITB INSTITUTIONS

First National Bank of lagle Bend, Minnesota 21(Succeeded by Citizens State Bank of “Eagle Bsnd,Minnesota*)

First National Bank Browerville, Minnesota 30(Succeeded by The Lee State 3ank, Browerville .Minnesota.)

Hational farmers Bank of Kasson, Minnesota 30National Bank of Dodge County at Kasson, Minnesota 48

(Both banks succeeded by Kasson State Bank,Kasson,Minnesota*)

NATIOWAI BANKS LIQUIDATED

The First National Bank of Belle Flaine, Minnesota 24(Voluntary Liquidation.)

The First Hational Bank of Montgomery* Minnesota 23(Voluntary Liquidation )

First National Bank Geyser, Montana 17(Voluntary Liquidation,)

First national Bank Lisa, Montana 2C(Insolvency)

STATS MEMBSB BANKS ABSORBED 3T NATIONAL BAHKS

Citizens State Bank of St* Charles, Minnesota 19(Absorbed by First Kational Bank in Sto Charles, ?4innesota«)

STATS MEMBER BAM WITHDRAWALS

State Bank of Belle Pl&ine Belle Flaine, Minnesota 24

MBMBEfl OF m B ER BAMS IH ACTUAL 0PSRATI0K PECSMBER 31, 1935

Hational banks 433 State banks 68

Total 501

— 8 4Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FISCAL AUSMOy FUNCTIONS - 1935

A. VOLUME OF OPERATIONS,

Issues* redemptions or exchanges of various United states

Government securities* including Treasury Savings Certificates*

Federal Intermediate Credit Bank debentures,, Home Owners* Loan

Corporation* and federal Land Sank bonds redeemed at this office*

which were ha-ndled by the i«iecal Agency operated by us for the United

states Government* numbered 318^763 pieces and amounted to

#316,. 102,,506c 35 as compared with 181*573 pieces amounting to

,*309,979,854,50 in 1934,

This Agency also handled during 1935* 5*13! purchases and

11^292 resales of Government securities totaling $37*111*400, In

addition* either delivery or payment or both* was handled for banks

and trust companies on 1*181 transactions in Government securities

amounting to #183*646*200o There were also 11*688 transactions of

Government guaranteed and miscellaneous general market securities ag

gregating #55,980*412.93# Altogether,, of these various transactions

there were 29y292 totaling #310*494,583*93* as compared to 33*932

totaling |302*489,?940,95 in 1934,

Delivery of 92*810 pieces totaling #174*040*995*12 was made

on purchase and resale transactions for other than our own account,

In addition, on exchange transactions* such as denominational exchange*

the exchange of coupon for registered securities, etc„* 20*633 pieces

were delivered^ amounting to &128*129^900* The total number of

pieces delivered was 113,443 amounting to #302*170*895,12 in comparison

with 130*527 totaling 1290*061*594 0 67 during the preceding year.

Acting as Fiscal Agent of the Federal i<arm Mortgage Corpora

tion during 1935* this Agency made 26*001 deliveries of 128*263

Federal Farm Mortgage Corporation bonds amounting to $72*463*100 in

accordance with instructions received from the federal Land Bank of

St* Paul,, During 1934*. 363^498 of these bonds were delivered amount

ing to >r 131,. 067. 700.

On subscriptions* exchanges and redemptions of bonds


fi scAL agkkox jumotioms {conta)

handled by this Agency as Fiscal Agent for the i?ederal i<arm Mortgage

Corporation during 1935 there were 34,314 pieces amounting to

133,817,800., There were also 53,472 pieces totaling $45,983,525 for

the Home Owners8 Loan Corporation and 10f584 pieces aggregating

#13,208,960 for the Federal Land Bankso In addition*, 370 Federal

Intermediate Credit Bank debentures amounting to $2 ,5 6 5 ,Q00 were re

deemed* Altogether, on issues, exchanges and redemptions of other

than the direct United States Government securities, there were

228,003 pieces^ contained in 35,053 applications, totaling

$158,837,385,

The total number of individual securities received and de

livered by the Fiscal Agency Department (including the Federal Farm

Mortgage Division) during 1S35 was 559,235 totaling $783,973,736o3?

as compared with 824,805 totaling #788,911,149 <,17 in 1934.

The Fiscal Agency operated by us for the uovernment re

deemed 390,870 Government coupons amounting to #9^083,768^88 during

the past year as compared to 558,958 coupons totaling $10 ,583 ,597099

during 1934c They also redeemed 412,400 Federal Land Bank, j?ederal

Farsi Mortgage Corporation and Home OwnersJ Loan Corporation coupons

amounting to $3 ,8 0 7 ,970o?5 during 1935 as compared to 189,383 total

ing #1,776,834.48 in 1934,

Bo LIBERT* LOAN BO^DB

In Marchp holders of Third-called Fourth Liberty Loan

bonds (ice* the Fourth Liberty L0an 44- per cent bonds bearing serial

numbers the final digit of which was 5, 6, or 7) were offered the

opportunity of exchanging these bonds for 3 7/8 ner cent Treasury

bonds of 1955~60« There were 2,644 applications submitting

$5,487^,100 in coupon bonds and 3,889 applications tendering $15,738,800

in registered bonds received and accepted by this Agency on such ex

changes? Third-called Fourth Liberty bonds, numbering 34,829 and

amounting to #13,843,800, were also redeemed*

On March 14 ,notice was given by the Secretary of the Treasury

that all outstanding First Liberty Lean bonds were called for redemotionDigitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FISCAL AGJEMOY FUNCTIONS (Oontd)

on June 15, 1935s on which date Interest on such bonds would cease.

In April, the Treasury Department offered to holders of

the First Liberty Loan bonds the privilege of exchanging them for

an additional issue of the 2 7/8 per cent Treasury bonds of 1955-80

or an additional issue of the 1 5/8 per cent Treasury notes of Series

A«!94Qo On such exchanges,, 2,818 applications for #15,354,850 were

received and accepted at this office® The remainder of First Liberty

bonds presented to this Agency^ 17,753 in number and totaling

$Sf100pQ00 were redeemed.,

On April 13, the Secretary of the Treasury gave notice that

all outstanding Fourth Liberty Loan 4^ per cant bonds of 1933-38 bear

ing serial numbers the final digit of which was 3 or 4 were called

for redemption on October 15, 1935*

In September, the privilege of exchanging for 2j ner cent

Treasury bonds of 1945=47 or 1^ per cent Treasury notes of Series C-

1939 was offered to holders of fourth- called Fourth Liberty bonds,,

There were 11,199 of the latter bonds in coupon form amounting to

$13*863,400 and 4,543 in registered form amounting to | 3 ,748,550 con

tained in 4,067 applications received and accepted by this Agency on

such exchanges* There were also 15,399 coupon bonds amounting to'

|4 ,531 ,250 and 5,?8S registered bonds totaling 11,978 ,300 of the

Fourth-called Fourth Liberty bonds redeemed by this office<,

Oc OTHER SEHVICES

With the exception of Treasury bills, there were fifteen

offerings of United States Government securities during 1935* In

such operations, 13s832 individual subscriptions contained in 13,598

different applications for #151,460,250 were received in this

district® The amount allotted on these subscriptions was $89^062,400*

During 1934, 10„26? individual subscriptions were submitted in 9,045

different applications on fourteen similar offerings and §132,089*250

was allotted.,


FISCAL AOEKO* FUNCTIONS (Contd)

During 1935j. 147 tenders amounting to #X8,631„000 were re

ceived by this Agency on 74 offerings of Treasury bills . Of these. It;

tenders on a discount basis ranging from ,03 p 3r cent to <,35 per cent

and amounting to %8P351P000 were accepted* ihrring 1934e 321 tenders

amounting to #30,489,000 were received and 48 senders totaling

$8 P480P 000 were accepted on-the 53 offerings of Treasury bills made

that year *

Five offerings of Treasury bonds, on which purchasers sub

mitted tenders, were announced during 1S35. Q\ these offeringst 317

tenders amounting to $6*796,,000 were received md 37 tenders totaling

#700^000 were accepted*

In March9 public notice was given by the secretary of the

Treasury that all outstanding 2 per cent Consols were called for re*

demption on July 1, 1935* Notice was given at the same time that the

outstanding 3 per cent bonds of the Pajiama Canal Loan were called for

redemption on August 1935, There were 1 ,02$ of these bonds amount

ing to $6*861,950 received by us and transmitted to the Treasury De

partment for payment*

On May 1*, the first request for payment of a United States

Savings Bond, series A* previously sold through the Postal service,

was received by this hgency-: During 1935p 1*137 of these bonds* all

in registered form and amounting to #313,775 were received for re-

demotion,,

In May5, the Home Owners6 Loan Corporation 4 per cent bonds

of 1933-51 were called for redemption on July 1935* The Secretary

of the Treasuryp on behalf of the Home Owners8 Loan Corporation

offered to holders of these bonds the privileges of exchanging for a

l£ per cent Home Owners Loan Corporation bond, Series F-1939, maturing

June 1, 1939c. There were 3S5 of these exchanges aggregating

$10,641^375 handled by this Agency,

On behalf of the Federal Farm Mortgage Corporation, the

Secretary of the Treasury, on August 36, 1935, offered to the public

a l£ per cent bond of that Corporation maturing September 1939,


FISCAL AGENCY FUNCTIONS (Contd)

and invited tenders therefor, fourteen tenders amounting to

716,000 and ranging from 99 1/33 to 100 were received and accept

ed ty this Agency.

In September,, announcement was made by the Treasury Depart

ment that owners of outstanding gold clause securities of the United

States would be permitted, under certain regulations,, to receive im

mediate payment of the stated dollar amount, plus interest to date of

payment*, or to prior maturity or redemption date* whichever was the

earlierf up to January l f 193Sff but the Secretary of the Treasury

might extend this time to July 1,. 193S* No securities other than

those called for payment were redeemed by this Agency under the term

of this announcement orior to maturity date-

At the close of 1935 there were 341 banks and trust

companies in this district which were designated as special deposit-

aries of public moneys* thereby being qualified to make payment

through their War Loan Deposit Accounts on a by credit basis for

subscriptions to new offerings of Uovernment securities. At the

close of the preceding year there were 321 balks and trust companies

so designated.

Including the weekly circular giving current market quota

tions on the various outstanding government i 3sues, which was sent on

request to approximately one-half the banxs in the district, 153

circular letter?? were sent to banks and trust companies In the

district during 1935 in connection with fiscal agency operations.

During the preceding year there were 13S circ alar letters,


hECOMbTRUGTION frIMAMCE COftPORATIQM

Our bank continues to act as Custodian* fiscal agent and

depositary for the Reconstruction finance Corporation,, The volume

of work during the past year has been less than in 1934, although the

work has taken on additional angles* The Corporation has organised a

subsidiary company* known as the h. h. 0* Mortgage Company* which will

make loans on business properties* including hotels, apartment build

ings having more than four apartments* and will also purchase federal

Housing mortgages* The Commodity Credit Corporation, another sub-

sidiary* will handle 1335-1936 corn loans, which are just now beginning

to come through0 All notes which we handled for the Commodity Credit

Corporation on the previous two corn loans were paid*

During the year, principal due from open and closed banks

has been reduced by #1*300*000 to #8?8*0G0o Miscellaneous loans of

#14p500p000 (principally a loan to Federal Land Bank of St, Paul) were

Increased 1100,000 and reduced $7S800^000; balance #6* 700>9 000* Pre

ferred stock holdings were increased #753*000; about $3,400*000 were

redeemed, leaving the principal balance #33f/G85*000* Loans to in

dividuals*, secured by preferred stock* were increased #142s000 and

decreased :$21*000? leaving a balance of #1*246*000* Debentures pur

chased from state banke were #9,868f000 at the beginning of the year,

increased by $788,000 and 4>2*469f000 were redeemed; nearly $600*000

of debentures purchased from state banks located in the portion of

Wisconsin included in the Chicago federal Reserve District were

transferred to Chicago. Balance of debentures on hand is $8*185*000*

Loans to liquidating agents and receivers of closed state

banks at the beginning of the year, $571*000, were increased #115,000,

and liquidation was $635,000* leaving $151*000 principal due at the

close of the year* Industrial loans at the close of the year totalled

♦?6*000* most of x?hich was disbursed during 1935; liquidation only

14 p 500a The Corporation has purchased IlSS^OOO of participations in

Industrial loans,, $10*000 of which has been liquidated; balance

$185,000c necelvers termination loans* aggregating $533*000* have

9UDigitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

KEOQNSTKUCTXQK FINAMC& CQhPORATIQH (Con td)

been made, out of which #83,000 has been liquidated, leaving a

balance of $43? £ 000,.

The Corporation has purchased drainage bonds aggregating

1263?000p this being mostly a refinancing matter, in connection with

which we paid off the old outstanding issues* The Corporation has

also purchased $4 ,742 ,000 of W« A* bonds? of which $2 ,467 ,000 have

fceen resold, some of which matured and were collected, leaving the

balance of such bonds in the hands of the Corporation at the close of

the year about $3,375,000»

There are a number of receivers termination loans to be

completed shortlyP

Incidentally, the R. j»-. C« auditors, recently here,, stated

that our fiscal agency for their Corporation, in number of loans was

second only to Chicago* although the average amount of our loans is

comparatively less than at most other points*

FEDERAL JSMEHGEKOY ADMINISTRATION OF PUBLIC WQnXS

At the close of 1934 we held #4,002,000 of bonds for

account of the Federal Emergency Administration of public Works*

During 1835 we disbursed as the purchase price for seventy-six

issues $4* 137,5 0000 During the year we handled eighty-nine sales,,

aggregating $5 ,148 ,000 , besides collecting £146,000 of bonds, in

addition to collections of coupons and grant matters«

On December 31* 1935 we held securities totaling $3 ,845 ,000

for their account*


1935 Directors Frb Minneapolis

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Transcript of 1935 Directors Frb Minneapolis