Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-04-10
RESERVE \ R II BANK b
EARNS NEARLY
FIVE MILLION
Reduction. in Outstanding
Loans Indicate Present
!. Situation.

Minneapolis, Mimi, April TO-
Gross earnings Of the Minneapolis
Federal Reserve bank in 1921 we're
t$4,966,311, according to an annual
report issued Saturday. The gross
earnings in 1920 were $5.3d1,s81 and
in 1919, IS, UV7, 04l. me current ex-
penses Tor 1921 were $l,t2b,ss7, COM
pared with $l,016,1yS in 1890 and
$b56,4sl inllslS. AIter making minor
adjustments in the prOtlt Tor
depreciation on bank premises and
other matters, and setting ;tsiuc IL re-
serve for possible losses OF $500, 900.
the report Va the eliet eai nings aUl-
able for dividcnds. surplus, and fran
Dividends totaling s211,657 we're de-
clared at the rate of 6 per cent per
annum on paid up toe held by
member banks. There was trans
fcrrcd to, surplus account, $48S,530.
and the remainder amounting to So
d60,967, was paid to the United States
government as Il franchise tax.
Earnings from discounted. bills,
principal source of revenu for the
bank, in 1871 We're $4,649,554; in
1870, $4,7S4,2o9, and in 1919, $1,S29,-
461. Earnings III 1921 from deficient
reserve Penalties were $161,15S.
Current Expenses Listed.
Among current expenses tor 1921
are listed S115.4s9 for officers sal
aries; $517,44s for clerical staff:
$124,5S4 for original cost, including
shipping charges of federal reserve
currency; $97,O72 ror printing and
stationery; $11,9O2 for directors meet
ings and $S5,5U5 for travelling ex-
penses. "
1.-The year 1921 was u period OF fl
nancial reimbursement In the north
west the report says. "4he rail- or
prices in 1920 and the impairment Of
confidence which resulted from:thls
decline caused grave financial! Distress
in tho agricultural sections of the
United States. In the country dis
tricts, financial reimbursement has been
limited to a reduction OF wages paid
10 hired help, and Il curtailment OF
purchases of agricultural implements
and other items not absolutely neccs-
sary. On the contrary, banks in he
larger cities have experienced no.
ticeable improvement in 1871 VIII CHI
Enabled them to reduce their borrow
ings.'
Loan Reduction Cited.
The report declares the reduction
in outstanding loans Of the banks is Il
clear indication of the credit situation
in the ninth reserve district. January
1922, the loans stood at SPA, 900 900.
by MuTCu LIZ lIleS SLoou ~ Yup'Noo,"
go. Spring planting expenditures
and harvest demands caused the tig-
urc to stand at $86, 700, 900 August "a.
From that date a steady payment re-
duced the loans December 70 to $52,-
900, 900.
A small part of this reduction was
due indirectly to the loan OF more
than $4,000, 900 in 1921 by the Wal
Finance corporation to the ninth re-
serve district, the report says.
! Member Bunk Borrowers.
A higher proportion of South Da-
kota member banks borrowed from
! the Minneapolis institutions that OF
any other state in the district. In
D South Dakota SO per cent Of the mem
Der banks discounted paper with the
Federal Reserve bank in some mart OF
1921. Montana was next, with 80 per
cent of its membership receiving &C
t commodation. The percentage for
North Dakota was 81; Minnesota, 68;
Wisconsin, Al, and Michigan. As.