The Washington times., 1928-02-18
RESERVE BANKS
EARNING OFF
Ry RICHARD HATTON

Gross earnings OF the Fedora
reserve banks in 1927 were lesi
than in 1926 while the operating
expenses. exclusive OF expenses re
imbursable by the United States
Treasury, were a little greater In
1927 than in 1926, according tc
figures set forth in the February
Federal Reserve Bulletin.
Gross earnings Of the Federal re
serve banks in 1927, at $43,024,OOO
were $4.575.0 below the precedlns
year. These earnings were derived
chiefly as interest and discount on
bills and securities. and the decnne
reflected both lower average rates
of return in 1927 on all classes or
holdings and also decline in the
average volume of bills and securl'
ties held.
S4:743,OOO Decline
Current operating expenses, ex-
elusive Of fiscal agency expenses
reinbursable by the United States
Treasurv. aggregated SGT 1913, 900 in
1927 This amount was $168,O00, or
about six-tenths Of / per cent,
larger than the corresponding total
for 1926.
Current net earnings remaining
: OCddStlOA OA NApC4AS~S
tn SIS, $500, 900 in 1927 a decline or
-$4,743, 900 from the total for 1926.
However, net charges made by the
Federal Reserve banks against these
earnings aggregated only $2,458 900
an 1927. as against So, 638, 900 for the
year before. The decline in charges
made against net earnings in 1927
was the result chiefly Of a decrease
if1 transfers to reserves for probable
losses from 81 ,2I0,000 in 1925 to
100000 in the later year; other
charges against net earnings IN
1927 included $1,777 900 added to
depreciation accounts for buildings
and premises and $500, 900 deducted
for furniture and equipment pur-
chased during the year.
Net earnings remaining after de-
duction of expenses and other
charges aggregated $13,O48, 900 and
were $3,563, 900 smaller than in
1926, This balance available for
distribution provided for dividend
payments to member banks to the
amount of $7,755. 900 and transfers
to surplus accounts to the amount
OF $5,O44, 900; in addition franchise
taxes amounting in all to $250.000
were paid by the Minneapolis and
kansas City reserve banks to the
United States Government.
Prepare for Banquet
The stage is set for the greatest
annual banquet in the history OF
the Washington Chapter American
Institute of Banking. which win
take place in the Willard Hotel
this evening. The work of the
banquet committee, headed by Chair.
man Z. Hunton Leith, was com.
nleted yesterday. Associated with
Chairman Leitl1 as members Of the
banquet committee are: James A.
Eoper, Lincoln National Bank, vice
ehairman: Lois A. White, Federal
american National Bank, secre.
tary; Robert II. Lacey. Columbia
National Bank, treasurer; M. Leona
Anthony, Federal-American National
Bank; Harold w. Burnside, Farm
ers and Mechanics National Bank;
II. H. Cox, Commercial National
Bank; Bruce g. Crandall, Com
mercial National Bank; John M.
DeMarco, Seventh Street Savings
Bank: James c.. Du1in. jr.. Ameri-
ran Security and Trust Co.; A. E.
Henze. William B. Hibbs and Co.;
III. r. Kimball, American Security
and Trust Co.: Catherine M. Krieg,
Riggs National Bank; Esther r.
Ilau, Riggs National Bank; 0.
Lehman, Security Savings and
Commercial Bank; Stuart S. Ogilvie,
Second National Bank: Frank M.
Perley. American Security and Trust
Co.; Mabel ". Royce, Washington
Loan and Trust Co.: Rose L. Royce,
Washington Loan and Trust Co.;
Edwin C. Steffe, Federal-American
National Bank; Alice III. Whitton,
First National Bank, Alexandra,
and william G. Winstead. National
Metropolitan Bank.
Haynes Returns
President Harry v. Haynes or the
Farmers and Mechanics National
Bank was back at his desk yester-
day after attending the sessions or
the, conference Of the Trust Com.
pany Division of the American
Bankers Association in New York.
The meeting of the executive
council OF the District Of Columbia
Bankers Association scheduled for
next Monday is awaited with keen
interest in banking and financial
circles as it is expected the ques-
ton of meeting place for the next
annual convention will be discussed,
If not decided. at that time.
According to an official summary
Of the Annual Report Of General
Motors Corporation for the year
ended December 81, 1927, the period
established a new record in both
sales and profits.
The dollar volume of trade during
the week ended February IL, as in
dictated by figures covering check
payments, was somewhat lower
than in the preceding week, but
higher than in the corresponding
week Of 1927, according TO the
weekly statement OF the Department
of Commerce.