The Washington times., 1915-08-05
RICHMOND FEDERAL
BANK IS IN THE LEAD
Makes Best Showing Of Any Of
Branches in Size Of Its Profit
Since Opening.

The Richmond reserve bank. repre-.
senting the District of Columbia. ana
the States Of Maryland. Virginia. West
Virginia. North Carolina and South
Carolina. led the country in the size OK
Its profits from the first seven and
half months operations Of the Federal
Reserve Banking system. having re-
ported for that period rs per cent OF net
earnings. by which ID meant total earn
inss less current expenses. 1ts earn
ings In excess Of expenditures were
$95.653.
These facts were set forth In the an
nouncement issued by the Federal re-
serve board late yesterday in the August
Federal Reserve Bulletin.
The reserve bank OF New YORK. the
most 25 per cent the combined capital
Of the three Southern reserve banks.
alone exceeded the earnings OF the
Richmond bank, the total earnings for
New York being M7o. .an. as compared
expenses Of the New York institution. , ni
however. cut down It's profits to Si3.o64.
System Is Paying.
The Federal reserve board announced
that the system Is paying current ex-
penses and carrying a surplus to its
eHulpHichts hhu >oo'oA
notes account. The earnings Of the sys-
tenn from November Is. 1914 when the
banks were opened. to June 30. were
t91s. IS, and the expenses were &s9a'l7.
| leaving a surplus OF $A.+n.
OF the total earnings about 30 per
cent were drawn from notes discounted.
about "a per cent from municipal war
rants. a little over 10 per cent from ac-
ceptances. about 6 per cent from United
States bonds. and less than per cent
from miscellaneous. mainly exchange
operations.
More than 81 per cent Of the earnings
are credited to the three Southern
| banks. their total being $345,l77. New
| York and Chicago were the only other
banks Of the system to report earnings
Louis bank showed the largest short
age. its expenses having exceeded its
The New York banks operating costs
were heaviest. being sl27.43S. The costs
OF operation Of the Richmond bank
| were $5l.s3a which exceeds those of
| only two other banks. Atlanta and Min
neapolis.
That the earnings OF the banks are
| steadily improving Is shown by the fact
June were Sl63, ,1+707, or more than one
| third greater than the average monthly
earnings for the seven and one-half
months since November lS. 1914. Cur
| rent expenses for June. on the other
hand. were only Sl22. 1882. which Is less
than per cent In excess OF the average
monthly current expenses OF the banks
| to June 80.
The board points out that during the
period covered by the statement about
N.IU. 600 OF expenditures were made. bu,
| of this sum 1882 was for organizat ton
expenses. &co2 l36 for equipment. and
S302.lt9 was the cost Of prepa ring Fed
| eral reserve notes. These expenditures
| 1t saws. should be distributed over a
period OF perhaps several years.
Division of Expenses.
| More than 81 per cent of the current
| expenses OF the banks went as compcn-
sation for personal services. and over
55 per cent as salaries to officers and
the clcrica! staff OF the banks The sal
| ary list was the heaviest Item Of ex-
pense 10 the Richmond bank The Of
| ficers received &l6,50e: the clerical staff,
| 81. .764: special officers and watchmen,
$esS and other Items ran UP to $3.50.
In commenting on business con-
ditions in the Firth district the boa rd
Gays that business. viewed as n whole
| Is just about holding a steady posi-
| ton. The wheat and oats cut during
July permitted OF substantial profits
and the cotton planters who reduced
their acreaRes OF that staple to make
way for the cereals are satisfied
| Cotton. while a little late, Is found to
be in excellent condition Retail
trade is said TO reflect both unusual
and the general midsummer dull
ness.