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Federal Reserve Bank
of Atlanta
1984 Annual Report

“We acknowledge our public i
responsibilities and our national t
part of the country‘s central banking system.”

Table of Contents
From the Boardroom..

.. .. . . 3

Economic Expansion Continues
in the Southeast.. . . . . . . . . . . .5
Atlanta Fed Activities:
A Commitment to Efficiency,
Integrity, and Excellence . . . . 9
Corporate Citizenship:
The Challenge of
Getting Involved.. . . . .
Directors and
Senior Officers

. . . . .15

. . . . . . .20
Branch Directors.. . . . . . . . . .22
, ,, ,,

Statement of Condition,
Statement of Earnings.

. , , .24

. . . . .25

Summary of Operations

. . . .26

reasonable in the exercise of our authority. We will regard quality and
responsive service as our most important business priorities and in carrying
out our responsibilities we will regard people as more important than process. Our business decisions will be weighed against a comprehensive
business plan that outlines our organizational goals and priorities, and these
decisions always will be made with careful regard for the longrun health of
the Bank and the constituencies we serve. We acknowledge our public
interest responsibilities and our national trust as part of the country's central
banking system. We intend to provide exemplary service to our government,
the business community, and the general public.

Management Philosophy
Since effective teamwork
goals, the Bank's
organizational structure and overall management style will reflect an open
and participative approach. Bank managers will be peopleoriented, visible,
and accessible at all levels. Employees will be kept informed regarding
plans, decisions, events and problems affecting them, and their suggestions
will be actively encouraged.

Information Center
Federal Reserve Bankof Atlanta
P. 0.Box 1731
Atlanta, Georgia 30301-1 731

-a

Employee Relations
We will strive to attra
taff of individuals who
are highly effective in carrying out their responsibilities, who are committed to Bank goals, who have the highest standards of personal integrity,
and who genuinely enjoy their careers at the Federal Reserve. The relationship between Bank management and other staff members will be characterized
by mutual respect, fairness, and equal opportunity and treatment for every
individual.

Pride in Work
Excellence is o
Reserve Bank
take pride in their professionalism and in providing the highest quality of
service possible to the clients we serve. The Bank encourages continual innovation, creativity, and involvement to improve productivity and the
quality of services we offer. Staff members are recognized and rewarded €or
their contributions to our success.
For additional copies write to:

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Community Involvement
We take seriously the responsibilities
orate citizenship and
actively encourage and support the civic and community involvement of our
staff.

(404)521-8788




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From the Boardroom

With a new management team in
- Federal
place at the beginning of
the
Reserve Bank of Atlanta adopted
,

1984,

a corporate philosophy statement that
identifies and articulates the Bank’s
mission and goals. That document corn
mits us to be prudent and foresighted in
managing Bank resources and fair and
reasonable in exercising our authority
as a unit of the nation’s central bank.
As a key section of the statement
-> summarizes: “We acknowledge our public
interest responsibilities and our national
- trust as part of the country‘s central
- banking system. We intend to provide
exemplary service to our government,
the business community, and the general
* public.”
4
In addition, we developed a strategic
business plan for 1985-1987 to guide
- the implementation of our primary
responsibilities with careful attention
to the longrun health of the Bank and
the constituencies it serves.
Perhaps the most visible of these
responsibilities relates to helping fomw
C late national monetary policy. In this
regard, we have focused more intently
on contributing to national goals through
- quality economic research Atlanta Fed
President Robert P. Forrestal participates
. on the policymaking Federal Open Market
-- Committee (FOMC) with the seven gover
nom of the Federal Reserve System and
the 11 other Federal Reserve Bank
* presidents.
He became a voting member
.of the FOMC in March 1985, as our
Banks president does every third year.
- A second responsibility spelled out
in the business plan involves our activities relating to supervision and regulation. We commit ourselves to providing
+ highly professional supervision of financial institutions, emphasizing minimal
interference consistent with safety and
soundness, while standing ready as a
* lender of last resort to support super
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Our third responsibility, which actually requires most of our resources, is
providing financial and central banking
services to the public, depository institutions, the U.S.government, and the
business community. We are dedicated
to offering superior service in a way that

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Atlanta Fed Chairman JohnH. Weitnauer, Jr., left, and Pn
it Robert P. Forrestal, right, in a discussionwith Federal
Reserve Board Chairman Paul A. Volcker during a meeting at the New Orleans Branch.

promotes .the efficiency and integrity
of the payments mechanism.
Our three corporate missions are di4
tinct, yet we see them as being comple
mentary and mutually supportive. By
achieving our strategic goals, we can
help encourage a strong, low-inflation
economic environment, and contribute

3

to a stable, efficient financial services
industry.
We are pleased with our accomplishments of last year, and this annual
report details the operations and achieve
ments of our various departments.
This annual report also will take a
close look at the economy of the Sixth
Federal Reserve District and how it
relates to that of the nation. The District
includes Alabama, Florida, and Georgia,
as well as parts of Louisiana Mississippi,
and Tennessee. Despite lingering areas

human relations through a comprehek
sive program to improve management‘s
accessibility and responsiveness to c
employee concerns. Our efforts include
a broadened District-wide program to
enhance employee relations and an
intensified dedication to the Bank’s
affirmative action program. We are
committed to identifying individualswith
promise and to helping them progress in
their careers.
We also intend to sharpen the Bank’s r
focus on community affairs. This report
details programs that our offices have
undertaken to improve their respective communities, particularly in the area
of education. And it will spotlight
some of the employees who have given
their own time to help make their corn
munities better places to live.
The Atlanta Fed will seek to improve
ties with congressional, business, and
community leadm in the District through
such initiatives as the distinguished
lecturer series that has brought leading
speakers to address our directors and
guests. Prominent economists, govern
ment officials, and bankers spoke d u r
ing the Atlanta series last year. In
addition, our directors heard Federal
Reserve Board Chairman Paul Volcker 4
address a joint meeting of our boards in
New Orleans.
We want to thank our directors for
their valuable counsel during the year,
with a special thanks to Guy W. Botts,
former board chairman of Barnett Banks ,
of Florida. Mr. Botts stepped down
from our head office board at yearend
after completing six years on that body
and three previously with the Jacksok
ville Branch board. We want to welcome
E.B. Robinson, Jr., chairman and chief L
executive officer of Deposit Guaranty 4
National Bank in Jackson, Mississippi,
who recently joined our head office
board.
c *
And finally, we would like to say
“thank you” to the 2,000 employees
whose dedication and hard work helped
us meet the challenges of a demanding +
year in 1984.
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Thisbrass plaquemarksthetable,stlllusedforAtlantaFedmeetings,aroundwhichBanlcdirectorsfirstmeton
October 19, 1914.




of weakness and the inmasing concern
over the vast federal budget deficit, the
regional economy and the national econ
omy so important to its health remain
generally strong. As you’ll see, we
consider the outlook encouraging for
the months ahead.
We’ll discuss the positive but some
times traumatic evolution of the finam
cia1 services industry. With depository
institutions still feeling the pressures of
a changing market, our role as a super
visor and regulator proved .to be an
active one during the year just past; it
promises to be no less important in
1985.

Looking ahead, we are aware of our
obligations not only to our constituents
but to our employees as well. We plan
to build upon past accomplishments in

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Economic Expansion Continues
' in the Southeast

.

The southeastern economv turned in a
good performance in 1984, h t h consicier
able employment and output expansion
\
and little upward pressure on prices.
After a slowdown in the third quarter,
the area's economy regained momentum
toward yearend We look for continued
growth in 1985 at a moderate pace.
- Naturally, the outlook for the region's
economic health depends on develop
ments in national and international
markets in which many of the region's
goods and services are sold While
weak energy prices and the strength of
the dollar in foreign exchange markets
i
are likely to dampen activity in some
*- sectors, vigor in others-such as autorelated manufacturing, services indue
tries, and defense contracting-should
be more than sufficient to maintain
growth for the regional economy in
coming months. And some parts of the
region, continuing to enjoy significant
business and population inmigration,
+ again are likely to grow faster than the
nation as a whole.
Thanks partly to the manufacturing
expansion and growth in servicerelated
employment, the region's total employment advanced at a rate averaging nearly
4 percent during 1984 compared with
only 2 percent the previous year. The
number of jobs increased by more than
a half million, 200,000 more than were
' added during 1983. Although job growth
continued through most of last year,
the rate dropped in the fourth quarter,
.L reflecting the more moderate expansion
in the second half.
The region's unemployment similarly
,mirrored the yeaI's generally positive
developments. The rate dropped to 8
percent in February 1984, after averag
ing nearly 10 percent during 1983, and
remained close to the 8 percent level in
the months that followed. Average
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unemdovment rates for Georgia and
Flo&
declined well below the national
and regional levels, but in Mississippi
and Alabama doubledigit jobless rates
persisted throughout 1984. The problems
in those two states, plus weak growth
in Louisiana, could make it difficult for
the region to reduce its joblessness
significantly this year. In fact, the
region's anticipated economic strength
in 1985 is likely to continue
varying sharply among indk
Unemployment Rate
vidual states and sectors.
The construction sector is
Percent
expected to continue driving
the Southeast's economy. Folm Sixth District
mUnited States
11
lowing a jump in the second
quarter of 1984, interest rates
10
declined substantially through
the rest of the year and resk
dential housing sales accelerated. Even though much of
the pent-up demand for housing
7
was satisfied by late 1984, the
construction industry expects
8 J.........J
activity to remain reasonably
1904
1983
stronn durinn 1985. In multlS o u m Bureau of Labor Statistics.
f a m G housgg, simply maintaining last y e d s pace-the
strongest since 1973-would constitute
an impressive performance.
Nonresidential construction also grew
energetically in 1984. In this sector,
too, activity reached a level not exceeded
since the early 1970s. Accelerated depre
ciation writeoffs and other tax laws
favorable to investment contributed to
this burst of activity. Some geographic
markets have been saturated with new
buildings and, in fact, may now be
overbuilt. Although growth is unlikely
to maintain its current pace through
1985, nonresidential construction may
still achieve impressive levels if e c o
nomic expansion proceeds as expected
Consumer spending typically encoun-

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ters a lull after a period of rapid growth,
such as the nation enjoyed through
1983 and into early 1984. Therefore, it
isn't surprising that the nation's economy
slowed last summer when residential
housing sales and construction tapered
off. As the summer progressed, consumer demand weakened for a broad
array of products including furniture,
appliances, and other household f u r
nishings.

for those 11 months, while Louisiana
lagged slightly behind
The national pause in consumer spending proved to be only a temporary lull
during another year of expansion, with
a strong fourth quarter that provided a
m m h g start for 1985.With that renewed
momentum, the Southeast's outlook
for the remainder of 1985 is encouraging.
The flow of businesses and residents
into the region should heighten demand

over 70 financial institutions' ATMs.

Retail sales in the Southeast held up
better than in the country as a whole at
that time. The Sixth District states continued to outperform the national aver
age, with Florida and Georgia leading
the way. In the first 11 months of the
year, for instance, Florida posted a 13.3
percent gain over the same months of
1983, compared with a 10.9 percent
gain for the nation as a whole. Tennessee
exceeded the national average slightly




for service industries, particularly in
Florida and Georgia. Moreover, business and tourist travel to the region
seems likely to advance during 1985. An
expansion of convention facilities in
several cities will accommodate an influx
of business travelers, and new facilities
apparently are being booked nearly as
quickly as they become available.
The region's planepassenger traffic
grew more slowly in 1984 than in 1983,

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partly because of lackluster perfomance
in the tourist sector. Many in the region's c
tourist industry look for improvement
this year. Last year, the number of il
visitors to the region was curtailed by
competition from the Los Angeles Olymn
g dollar, which encour
pics and the m
aged U.S. citizens to travel abroad. The /
c e w Orleans World's Fair proved to be
a disappointing money-loser for its
sponsors although it clearly boosted
tourism revenue in neighboring states.
Defenserelated manufacturing, espe
cially electrical and electronic machinery
and equipment, should exhibit solid
growth this year as will the region's
substantial paper manufacturing indue
try. Unfortunately, not all the region's
manufacturers will fare as well. Much
of the apparel and textile manufacturing
sector is suffering because of keen
competition from imported products,
their prices discounted in our outlets
because of the dollar's strength in for
eign exchange markets. Unless the dollar
continues its early 1985 decline against
other currencies, pressures on the d e
mestic textile industry will mount. The
displacement of textile workers will
pose a lingering absorption problem for
the southeastern labor market.
Virtually every industry heavily dependent on foreign sales has seen its market
share shrink in recent years. The agricultural sector has been especially
troubled by reduced foreign demand
Low prices for farm products, heavy
debt d c e requirements, and declining
land prices remain major hurdles for
farmers.
The nation's economic expansion
scarcely touched the southeads energyproducing sector in 1984 and the new
year promises little improvement. The
worldwide market for Detroleum and
natural gas is abundantli supplied, even '
though some producers have slashed
output to shore up prices. Growth in +
foreign economies has been far less
robust than ours and conservation efforts
have restrained demand. Regional oil
and gas production cannot rebound
until global market conditions improve.
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- businesses
Southeastern seaport facilities and
dependent on export marketing find themselves hurt by the declining
exports. Rising imports have bolstered
a number of seaports and traderelated
businesses, but a realignment of the
dollar with other world currencies
appears to be a prerequisite to restoring
’the health of most of the Southeast‘s
international trade sector.
In the financial services industry, a
continuing evolution in 1984 laid the
groundwork for additional changes in
-the new year. Geographic barriers to
%ompetition among banks and savings
and loan associations eroded further
during 1984, while loan losses hastened
-,
the failure of additional depository institutions.
+
In another development typifying the
atransition in financial services, Georgia
consumers gained access to almost all
of the state’s automated teller machines
’ late in the year through the creation of
Avail, a statewide ATM system modeled
J after Florida’s Honor system.
The barriers to interstate competition
A were reduced significantly in the South
east by four states‘ approval of reciprocal
regional interstate banking legislation,
by the opening of the “nonbank bank”
loophole, and by a large New York
bank holding company’s acquisition of
a failing S8tL in Florida.
A change with great potential for
banking in the southeast was the passage
of regional reciprocal interstate banking
-* legislation in Florida, Georgia, North
Carolina, and South Carolina. These
four legislatures voted to allow banking
1 organizations in other southern states
s to acquire their institutions if the other
states provide reciprocal privileges. All
,four state laws, which become effective
jn 1985 or 1986, prohibit banks outside
the South from acquiring institutions in
these states.
The constitutionality of regional inter
4
state banking bills like those passed in
the Southeast was challenged in New
England early in 1984. The regional
”bills were upheld in the federal Court of

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Appeals, but the Supreme Court has
agreed to review the legislation.
The first merger proposed under the
reciprocal laws would link Sun Banks
of Florida, the second largest banking
organization in the Sunshine State, and
Atlanta-based Trust Company of Geor
gia, the third largest banking organization in that state.
Another major development in inter
state banking came when the Federal
Reserve Board approved U.S. Trust
Corporation of New YorKs proposal to
convert its trust company in Florida
into a “nonbank bank.” A nonbank, or
limited-service bank, is insured and
~~

Many proposed nonbank banks are
expected to be opened in the Sixth
District states if Congress and the courts
permit holding companies to exploit
the loophole aggressively. Ninety-five
applications had been filed as of midJanuary for the Sixth District states.
Florida leads the list with 42 proposed
nonbank banks, while 22 applications
have been filed for Georgia. Both states‘
legislatures have voted to prohibit the
nonbank institutions.
Still another banking development
was Citicorp’s acquisition of a financially troubled savings and loan association in Miami, approved by the Federal

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Value of U.S. Dollar

Percent Change from December 1971

Tradeweighted Against 10 Currencies

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30

20

10

0
J F M A M J J A S O N D J F M A M J J A S O N D

1983

1984

Souroe: Federal Reserve Bunk of Atlanta

regulated but, because it does not meet
the definition of a bank in the Bank
Holding Company Act, it is not subject
to commercial banks‘ customary g e e
graphic restrictions.
In February 1985 a federal district
court ordered the Comptroller of the
Currency not to issue any final approvals
for limited-service banks pending a
final court decision. The comptroller
had begun approving nonbank bank
charters after Congress failed to revise
the Bank Holding Company Act in
1984. He had imposed a moratorium
earlier to give Congress time to revise
that act.

7

Reserve Board early in 1984. Acquisition
of the Florida S L , arranged by the
Federal Savings and Loan Insurance
Corporation under provisions of the
Garn-St Germain Act, gave the nation’s
largest banking organization an entry
into one of the fastest-growing states.
Barriers to intrastate competition in
Louisiana were lowered by the passage
of a bill permitting multi-parish bank
holding companies The legislation could
prompt the reorganization of many chain
banking organizations into bank holding
companies, as well as holding companies’ purchase of some previously
unrelated banks.

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In the BanKs control room,guards monitor the closdcircuit television screens that enable our ProtectionDepartment to maintain surveillance essential to a central bank




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Atlanta Fed Activities:
.A Commitment to Efficiency,
- Integrity, and Excellence

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The evolving financial services environment has brought major changes
not only to our pricdservices operations
’but to more traditional Bank activities
\such as those involved with supervising,
regulating, and lending to commercial
banks. Other departments, including
:Accounting and Statistical Reports, also
have been affected.
At the same time, developments in
* our national and regional economies
?pose new challenges for our specialists
dedicated to researching economic trends
and counseling President Robert P.
-, Forrestal on monetary policy.
We have come to feel at home in the
-new operating environment that was
4 thrust on us by “MCA-80”-the Mone
tary Control Act of 1980. The act required
us to sell, at explicit prices, services
that we had for years provided free to
member banks-services such as check
9 processing, securities and noncash collection, wire transfers, and net settle
ments. We were also to make those
services available to nonmember banks,
b
savings and loan associations, and credit
unions.
’ Throughout 1984, our 2,000 employees
continued the high operating efficiency
that has kept us in the forefront of the
12-Bank Federal Reserve System. That
+ efficiency helped us to comply with the
congressional mandate, enunciated in
MCA-80, that the Reserve Banks match
operating costs with revenues.
Despite our efficiency, a growing
workload continued to tax our physical
‘ facilities. In Jacksonville, one of the
”fastest-growing economies in the nation
has prompted the construction of a new
’ Branch building. The growing volume
- of business at the Jacksonville Branch
has inundated our present building,
which dates to 1952, with more work
, than its limited space can accommodate.
The new 208,000-squarefoot building,
well suited to the electronic age, is
1 “rising just west of Jacksonville’s business district.
On the following pages we comment
’ briefly on our operations in 1984, noting
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a few of our plans for further improve
ments in the years to come. Data on the
volume of our operations appear on
page 26.

Financial Services
One of the Bank’s most important
missions is to serve the public interest
by providing superior f i i c i a l services.
This meshes well with our dedication
to promoting the efficiency and integrity
of the payments mechanism- another
major ongoing mission of this District
and the Federal Reserve System.
Since enactment of MCA-80, we have
sought to cover our costs of providing

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Guy Hitchcock, foreground, end Ted Reddy review plans for the new JacksonvilleBranch building now
under construction in that Florida city.

priced services by continuing the Distids
emphasis on low costhigh quality operations. In 1984 we covered costs, met
our volume targets, and remained a
leader in the Federal Reservds measures
of production costs.
Because the industry we serve is
changing rapidly, we have concentrated our longer range planning on
developing new services. From 1981 to

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Assistant Vice

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President JamesL. BrownconferswithBarbaraTysononasecuritiesservicestransferbetweenthe Atlanta Fed and a District financial institution.




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1983, we received approval from the
Board of Governors to offer 21 new or
improved services; in 1984 we obtained
approval for 19 more. The following
sections highlight our 1984 accomplish-

ments and preview some of our future
plans.

Check Collection
Check collection, a mature product
, line, generates 85 percent of the Atlanta
Fed’s revenue from financial services.
The future seems to promise fewer
checks to be processed and fewer check
processors. This trend is likely because
of consolidations among regional c o r n
spondent banks, a reduction in endpoints
served due to mergers, and continued
? interest by financial institutions in direct
local and regional exchanges. In 1984,
the District processed 2.14 billion checks
or 8 percent more than during 1983.
This is the largest volume of any Federal
+ Reserve District.
We continue to explore other needs
in the marketplace. We hope to develop
cooperative ventures in which we would
. provide specialized processing for other
large processors, and to employ tech. nology that can make our service more
efficient. In 1984,we took further steps
toward serving an increasingly elec
*
tronic payments mechanism by providing microfilming services for commer
cial checks either for a depositor prior
+ to check sorting or for a check receiver
- following sorting. In 1985 we will continue moving toward a less paper
dependent system by piloting a program
for truncation of checks at the Federal
Reserve. Truncated checks are held at a
deposit point rather than being returned
- to
the check-writer. This service could
permit even greater savings for the
payments process.
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popularity; therefore, we plan to use
advanced technology to make wire trans
fer and ACH services broader and more
cost-efficient through faster processing
and improved data communications.
As a major step in this program, the
Bank last year began employing the
latest technology to implement an u p
graded, online, multi-service electronic
network to deliver Federal Reserve ser
vices to Sixth District financial institutions. As a further step, we expanded
ACH night-cycle processing and offered
new electronic delivery options. During
the past year, the number of commer
cial ACH transactions processed at our
six offices increased by about 44 per
cent while the dollar volume more than
doubled.

Securities Services
With the new requirement that all
securities be renistered and the national
trend toward -book-entry of
registered securities, our existing definitive safekeeping and
Check Collection
coupon collection services
Average Daily Incoming Items
have limited long-term poten[millions)
tiaL However, while adapting
to long-run needs of the m a r
ketplace, we intend to pursue
nearterm service opportunities. As part of this strategy, a
standard securities services
software package using a new
microcomputer network was
implemented in December. It
offers substantial improve
ments over our Drevious sv.+
CP 42 43 44 CP c22 4 3
tem, and allows &line insti”k-

Wire TransfedACH
As the nation’s payments system
-.evolves further toward electronic t
r
a
m
fers, the Fed also will move in that
direction, continuing to be a stateof+ theart payments processor. Electronic
payment generally is recognized as the
medium of the future, particularly as
(POS), automated teller
point-of-sale
+machine (ATM), automated clearinghouse (ACV, and other electronic pay* ment and settlement functions gain

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first introduced in mi&1983 was continued successfully last year, with the
District handling more than onefourth
of total Systemwide noncash volume.
This program appeals to financial institutions that prefer not to sort their
noncash items but rather to deposit a
mixture of items payable both locally
and in other Federal Reserve Districts.

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Caeh and Other
Non-Priced Activities
In addition to the innovations in e
priced services, the Sixth District continues to improve the efficiency of cash
operations and to support the System’s eefforts to provide increasingly automated
and higher quality services to the govem
ment. The Dishkt is working with the
Treasury Department on new cash e
management services and on converting
additional securities to book-entry form.
Over the past few years, new high
speed currency processing machines
and standards have improved the quality
of currency in circulation. A redesigned
fitness sensor is now being installed on
all existing equipment. We also are
participating in the test of a second
generation currency system, with the
prototype to be installed in Atlanta
4
during the second quarter of 1985.
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Economic Research and
Public Information

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Our Research Department is com- 3
mitted to helping formulate and imple
ment monetary policy and adding to
our understanding of macroeconomic *r
policy issues through high quality
research. Top priorities are the evaluation of how monetary policy influences
the regional, domestic, and interna- *
tional economies, and the development
of policy alternatives. We continue our
longterm interest in the impact of a - &
changing financial structure on regulatory and monetary policies. Last year,
the research effort was deepened through +
greater use of quantitative methods,
including work with a structural model
w
of the U.S. economy.
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one of the Atlanta Feds massive vault doors symbolizes the strength of the institution.




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Meanwhile, the Bank is working to
communicate to the public effectively
through its publications, conferences,
President Forrestal’s regular newspaper
column, and presentations delivered to
civic and professional groups by senior
officers and economists. We seek to
foster public understanding of Bank
and System responsibilities and objeo
tives h u g h the press as well as h u g h
our contacts with and publications for
the academic and business communities.
The department‘s Economic Review,
which won a national communications
award in 1984, and our Southeastern
Economic Insight newsletter have proved
to be popular conduits for channeling
such &formation to the public. Those
publications analyze economic, financia1 and business conditions nationally
and in the region.

Act banks and branches and agencies
of foreign banks doing business in the
Sixth District changed little during the
year. At yearend there were 106 inter
national banking institutions in the D k
trict, 24 of them in Atlanta and 79 in the
Miami area.

Diecount and Credit
In addition to performing its normal
function of supplying seasonal and
short-term adjustment credit, the Dis
count and Credit Department worked
in concert with other regulatory agencies
durinn the vear for the orderly resolution
of p&ble& at eight failing ~mstitutions.
That was one more than the seven
institutions assisted in 1983, when a
number of related problems arose in

Supervision and Regulation
Our activities in this segment of our
business have been shaped by the continuing evolution of the nation’s financial system and the rules governing it.
Critical to this evolution is the continued
restructuring of the system through the
bank holding company form of organization, which the Federal Reserve alone
has responsibility for regulating. In the
Sixth District, bank holding company
activity was at record levels last year.
We processed 150 applications from
institutions seeking to form new holding
companies and 165 applications relating
to other changes such as mergers and
acauistions of commercial banks .or
noibank firms.
Twelve new statechartered banks
and one existing bank in the Sixth
District were admitted to membership
in the Federal Reserve System in 1984,
with 13 applications still pending at
yemend. Since MCA-80 diminished
the resewe requirement &advantages
*--of membership the number of stke
member banks in the Sixth District has
risen to 98, the most in recent history.
*.
On the international banking scene,
foreign debt problems and a rising dollar
brought a slowdown after several years
ILof rapid growth. The number of Edge

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installed in the Print Shop to provide wider variety while speedin8 the composition process.

eastern Tennessee. In the Sixth District
all such cases in recent years have been
handled h u g h what is generally called
the “purchase and assumption” proce
dure, which provides virtually uninter
rupted service to depositors.

13

1

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"j,

- 3

F

Kathy Clements of Corporate Accounting shares a book with skyearold Joey Bryan at Henrietta Egleston Hospital for Children in Atlanta,
where Kathy pitchea in as a volunteer on weekends.




14

f

Corporate Citizenship:
;The-Challenge of Getting Involved

L

7

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We at the Atlanta Fed view ourselves
as partners in various civiominded
corporate undertakings in the six southeastern cities where we have offices. In
fact, our corporate philosophy state
ment notes, “We take seriously the re
sponsibilities of our corporate citizenship and actively encourage and support
the civic and community involvement
-i of our staff.”
While there are limitations on the
role that a quasi-public entity can play,
both social and business considerations
* support the concept of community involvement The importance of corporate
4 interest in community affairs has been
.L heightened in recent years because private businesses and citizens have been
. called upon along with local governments to assume a large share of support
previously provided through federal
government expenditures.
Individual employees are free of the
? strictures that often limit an institution
r- in its desire to “do good” Bank employees
in Birmingham, Jacksonville, Miami,
Nashville, and New Orleans, as well as
- Atlanta, have involved themselves in
projects as diverse as performing volun
* teer work
for a children’s hospital,
serving on emergency rescue units,
helping feed the needy, counseling prison
inmates, teaching illiterate adults to
i read and coaching youth sports teams.
We feel that a clearly legitimate area
, for community involvement, both on
the part of the Bank and its individual
employees, is in the realm of educationencouraging and working to promote
excellence among superior students as
4 well as potential dropouts struggling
with average classwork. Therefore,
much of the Bank’s community activity
is directed toward this end.
Fostering excellence in educational
, systems can benefit everybody. Employ+ers can gain a better qualified labor
market to draw upon, and improved
access to jobs through schooling may
4

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even reduce crime. To date, the Bank
has become involved in such programs
as the Harper Magnet School for Financial Services, Inroads, Adopt-*Student,
and the Atlanta Chamber of Commerce
Task Force on Education.
In the widely praised Harper Magnet
School program, which the Atlanta
Fed helped create in 1982, high school
students with proven academic competence and a desire to enter the financial field are given special support by

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Tourguide Monica Walker explains displaysof rare coins and currency in the monetary museum, an Atlanta Fed exhibit
tracing the history of money. All of the Bank‘s offices host public tours.

Atlanta’s banking community. Young
people selected from all over the city
are brought together in this “school
within a school” where they are given
special financial services training by
regular classroom teachers and bafik
staff members. Each student is offered
an internship at one of eight sponsoring
banks, as well as summer employment
at a financial institution following graduation. The Atlanta Fed alone employed
12 graduates last summer.

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internship.




4

16

“Inroads“ is a national organization
that identifies, trains, and develops
talented minority college students inter
ested in corporate careers in business
t or engineering. The program’s objectives
are to provide experience and increase
business opportunities for the youths,
while giving corporations an opportunity
to develop future employees. We e m
ployed two Inroads interns last summer.
One student completed her third summer
of internship at the Bank, while the
other finished her first summer work
experience and entered college in the
fall.
The Bank also recruited volunleer
employees qualified to work oneonone with teenagers as part of the Adopt-a
Student program. In this program, high
school seniors in the lowest quartile of
their classes are “adopted” by individuals
in business who encourage and help
them after houps. The object is to mot&
vate students to improve their grades,
graduate from high school, and find
employment Ten Atlanta Fed employees
made commitments to the program for
the 1984-85school year.
The Atlanta Fed also took part in an
Education Task Force created by Atlam
ta’s Chamber of Commerce. In one task
3 force project, schoolteachers who lacked
a computer background were given an
eight-week course in the basics to
help them more effectively instruct
- students who were already computer
knowledgeable.
- One member of our staff lectures at
L workshops sponsored by the Georgia
Council on Education and serves as a
trustee of the council, which develops
techniques and materials to help teachers
give students an understanding of basic
economics. And, during 1984, high
school vocational and career counselors
toured the Bank on Educators’ Day,
part of a program designed to encourage
young people to continue their studies.
, Not
all of the Bank‘s community
involvement energy is channeled into
education. Our community affairs fune
tion was expanded during the past year
through the activities of a community
affairs officer who serves as liaison
between the District‘s financial institu*?ions and cities and various local o r
ganizations.
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Our designated officer seeks to
familiarize himself with economic
and community development needs and
programs within the District, and to
inform financial institutions how they
might involve themselves in relevant
programs in their markets. He works
with the District‘s 20 Neighborhood
Housing Services corporations, partner
ships of financial institutions, neighbor
hood residents, and city governments
created to revitalize urban neighbor
hoods. He has helped several organg
zations by attending fun&raising events
for the contributing financial institutions
one such affair was hosted by the

$1

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J




Iayne Fox-Bryan,director of community relations, offers some communications pointers to Harper Magnet School
students and Inroads interns.

Miami Branch. A related initiative is
publishing “Opportunities,” a bimonthly
newsletter designed to inform banks of
opportunities for participation in local
economic and community development
programs.
Our offices support such respected
programs as United Way campaigns
and Red Cross blood drives. Again, the
Bank’s involvement must be limited,
since our charter precludes making
corporate gifts to charitable organizations. Yet for years the Bank has s u p
ported the United Way and the many
community agencies under its umbrella.

17

Officers and other staff members in our
various offices participate in the annual
fun&raising campaign, serving as group
and division managers. The Miami and
New Orleans Branches both provided
two "loaned executives" for the 1984
fund drive, and the Atlanta office con
tributed one for that city's drive. Bank
officers serve on agency relations committees, overseeing the programs and
expenditures of various organizations.
Bank employees contribute generously
to the United Way in OUT six cities,
establishing a level of giving that has

Individual employees in Jacksonville
spend off-duty hours working with such
organizations as the American Red
Cross, the Boy Scouts of America, the r
Salvation Army, and the Special Olympics. Employees serve on volunteer fire
departments and perform in community
theater groups.
rc
In Miami, employees enter into activlties ranging from chairing the West Dade Chamber of Commerce-an organ
ization with more than 100 participating businesses-to working as a Big
Brother or Big Sister in a program that ?
fosters a personal relationship between
an adult and a oneparent child Various
employees give their time to such organ izations as the Urban League of Greater Miami, the Inner City Children's Touring
Dance Company, and the Sierra Club of _,
South Florida.
The Nashville Branch has been honored as an outstanding employer of the
deaf, employing several deaf men and .,
women. To enhance communication
with deaf employees, sign language
classes are conducted periodically by
interpreters from the League for the
Hearing Impaired.
In New Orleans, Branch employees
coordinate a child abuse and battered A
womexi's program, conduct fudraising
activities for a retarded children's special
school, and counsel adolescents troubled
by family problems or drug addiction.
One employee serves with the Land,
Air and Sea Emergency Rescue Unit,
responding to disasters and emergency situations ranging from plane crashes
to hostage negotiations.
Why do we encourage such off-hours
activism by our employees? Community C
involvement's longterm benefits to an
institution or a corporation often are
uncertain in the beginning. Yet, s o m e i
advantages are obvious. For example,
involvement benefits the society in
which we work and live. Community
projects also help us identify talented,competent employees. Furthermore, if
an institution and its employees can
help raise educational standards, u p I
grade the lives of the underprivileged
and afflicted, and contribute to the ,
overall well-being of a locality's econ-+
omy, everyone will benefit.
~

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Miami Branch employees JackFinch, left, and Francisco Padilla check out a work schedule with Zenaida Hernandezat
the United Way of Dade County, where Finch and Padda worked six weeks each as loaned executives.




captured many awards. More than 87
percent of our Atlanta office staff participates in the Charity Parity plan, a
payroll deduction plan for charitable
giving. Total 1984 pledges increased by
15 percent and fair share giving rose by
24 percent. Employees responded with
similar enthusiasm in the Bank's other
offices.
An officer of the Birmingham Branch
served as chairman of the Alabama
Youth Football State Championship,
which involved 1,200 youngsters and
raised funds for King's Ranch, which
shelters mistreated children and unwed
mothers.

18

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Robert E. Heck, an officerin Supervision andRegulation shown bere in uniformto referee a high school football game, alsocoaches &la softball
teams in his off houra




19

Directors and Senior Officers

Board of Directors, 1984

e

JOHN H. WEITNAUER, JR.
CHAIRMAN
Chairman and Chief Executive Officer
Richway
Atlanta, Georgia

r
-4

BRADLEY CURREY, JR.
DEPUTY CHAIRMAN
President
Rock-Tenn Company
Norcross, Georgia

!-I

DAN B. ANDREWS
President
First National Bank
Dickson, Tennessee

a

a

HAROLD B. BLACH, JR.
President
Blach's, Inc.
Birmingham, Alabama

GUY W. BOTTS
Senior Partner
Culverhouse, Botts, Mills & Cone
Jacksonville, Florida

JANE C. COUSINS
President and Chief Executive Officer
Merrill Lynch Realty/Cousins
Miami, Florida

BERNARD F. SLIGER
President
Florida State University
Tallahassee, Florida

2
\

HORATIO C. THOMPSON
President
Horatio Thompson Investment, Inc.
Baton Rouge, Louisiana

A
2

MARY W. WALKER
President
The National Bank of Walton County
Monroe, Georgia

I

6'

--

New Director for 1985

1984 Directors:Seated are Currey. left and Weitnauer. Standing, from left, are Blach, Federal Advisory Councilmember

Searle. Cousins, Thompson, Walker, Andrews. Sliger, and Botts.




Y

E.B. ROBINSON, JR.

Chairman and Chief Executive Officer
Deposit Guaranty National Bank
Jackson, Mississippi

-4

c:
>&

Federal Advisory Council
PHILIP F. SEARLE
Chairman

Sun Banks, Inc.
Orlando, Florida

20

t4

Management Committee

Senior Officers
JOHN R. KERR
ROBERT P. FORRESTAL
President

JACK GUYNN

Vice President

First Vice President

B. FRANK KING

First Vice President

B. H. HARGETT

Vice President

Senior Vice President

RICHARD R. OLIVER

CHARLES D. EAST

Executive Vice President

W. R. CALDWELL

ELY S. MATTER1

Vice President

Senior Vice president

JOHN M. WALLACE
CHARLES D. EAST

Vice President

Senior Vice President and
Comptroller

JEFFREY J. WELLS

HARRY C. SCHIERING
General Auditor

H. TERRY SMITH

Vice President and
Nashville Branch Manager

EDMUND WILLINGHAM
Vice President and
General Counsel

SHEILA TSCHINKEL
Senior Vice President and
Director of Research

PATRICK K. BARRON
Vice President and
Miami Branch Manager

WARDLYN BASSLER
Vice President

HENRY BOURGAUX
Vice President and
New Orleans Branch Manager

HARRY BRANDT
Corporate Secretary and
Assistant to the President

FRANK J. CRAVEN
Vice President

W. M. DAVIS
Vice President

DELMAR HARRISON
Vice President and
Atlanta Branch Manager

JAMES D. HAWKINS
Vice President and
Jacksonville Branch Manager

ROBERT E. HECK
Vice President

+--FREDERICK R. HERR
Vice President and
Birmingham Branch Manager




Executive Vice President

W. R. CALDWELL

Senior Vice President and
Comptroller

HARRY C. SCHIERING
General Auditor

Senior Vice President

-

B. H. HARGETT

Vice President and
Associate Director of Research

JACK GUYNN

I

H. TERRY SMITH
Senior Vice President

SHEILA TSCHINKEL
Senior Vice President and
Director of Research

Branch Directors, 1984
Birmingham

Jacksonville

Miami

MARTHA McINNIS
CHAIRMAN

JEROME P. KEUPER
CHAIRMAN

SUE McCOURT COBB
CHAIRMAN

President
EnviroSouth, Inc.
Montgomery, Alabama

President
Florida Institute of Technology
Melbourne, Florida

Attorney
Greenberg, Traurig, Askew, Hoffman,
Lipoff, Rosen and Quentel, P.A.
Miami, Florida

G. MACK DOVE

President and Chief Executive Officer
Security First Federal Savings
and Loan Association
Daytona Beach, Florida

EUGENE E. COHEN

LEWIS A. DOMAN

D. S. HUDSON, JR.

President
Citizens and Peoples National Bank
Pensacola, Florida

Chairman
First National Bank and
Trust Company of Stuart
Stuart, Florida

President
AAA Cooper Transportation Company
Dothan, Alabama

GRADY GILLAM
Chairman
AmSouth Bank, N.A.
Gadsden, Alabama

SAMUEL RICHARDSON HILL, JR.
President
University of Alabama at Birmingham
Birmingham, Alabama

CHARLES LEE PEERY
Chairman
The First National Bank of Florence
Florence, Alabama

WILLIAM M. SCHROEDER

GEORGE C. BOONE, JR.

Chief Financial Officer and Treasurer
Howard Hughes Medical Institute
Coconut Grove, Florida

E. F. KEEN, JR.
Vice Chairman
NCNB Bancorporation, Inc.
Bradenton, Florida

ROBERT L. KESTER
Vice Chairman
Barnett Bank of South Florida, N.A.
Pompano Beach, Florida

E. WILLIAM NASH, JR.
President
South-Central Operations
Prudential Life Insurance
Company of America
Jacksonville, Florida

ROBERT D. RAPAPORT
Principal
The Rapaport Companies
Palm Beach, Florida

Chairman and President
Central State Bank
Calera, Alabama

JO ANN DOKE SMITH

ROY VANDEGRIFT, JR.

CmOwner
Smith Brothers
Micanopy, Florida

President
Roy Van, Inc.
Pahokee. Florida

LOUIS J. WILLIE

JOHN D. UIBLE

Executive Vice President
Booker T. Washington Insurance Company
Birmingham, Alabama

Chairman and Chief Executive Officer
Florida National Banks of Florida, Inc.
Jacksonville, Florida

New Directors for 1985

New Directors for 1985

WILLARD L. HURLEY

ANDREW A. ROBINSON

STEPHEN G. ZAHORIAN
President
Barnett Bank of Lee County, N.A.
Fort Myers, Florida

New Directors for 1985
ROBERT D. APELGREN

Chairman and Chief Executive Officer
First Alabama Bancshares, Inc.
Birmingham, Alabama

Dean, College of Education
and Human Services
University of North Florida
Jacksonville, Florida

President
Apelgren Corporation
Pahokee, Florida

A. G. TRAMMELL

JOEL R. WELLS, JR.

JAMES P. HERMES

President
Alabama Labor Council- AFGCIO
Birmingham, Alabama

President and Chief Executive Officer
Sun Banks, Inc.
Orlando, Florida

President and Chief Executive Officer
Bank of the Islands
Sanibel, Florida




22

Nashville

-.C. WARREN NEEL

1

CHAIRMAN

Dean
College of Business Administration
-'The University of Tennessee
Knoxvue, Tennessee
~

3
I

CONDON S. BUSH

- President
__

Bush Brothers & Company
Dandridge, Tennessee

d

MICHAEL T. CHRISTIAN
President and Chief Executive Officer
Commerce Union Bank Greeneville
5 Greeneville, Tennessee
r

SAMUEL H. HOWARD
Vice President and Treasurer
Hospital Corporation of America
Nashville, Tennessee
In a scene repeated daiiy at our six Branch offices, an operator prepares money for processing on a hwspeed currency
machine that will verify the amount and screen out unfit bills and counterfeits.

k
8-

ROBERT W. JONES
Chairman and President
- First National Bank
McMinnville, Tennessee
4

i
OWEN G. SHELL, JR.
President and Chief Executive Officer
First American National Bank of Nashville
. Nashville, Tennessee

2

New Orleans

PHILIP K. LIVINGSTON

SHARON A. PERLIS
CHAIRMAN

Vice Chairman, President, and
Chief Executive Officer
Citizens National Bank
Hammond, Louisiana

Attorney
Metairie, Louisiana

TOM B. SCOTT, JR.
JERRY W. BRENTS
President and Chief Executive Officer
First Louisiana Holding Company
Lafayette, Louisiana

ROOSEVELT STEPTOE

PATSY R. WILLIAMS
J

Partner
Rhyne Lumber Company
Newport, Tennessee

5

CARL E. JONES, JR.
Chairman, President, and
Chief Executive Officer
Merchants National Bank of Mobile
Mobile, Alabama

' New Director for 1985
*

WILL A. HILDRETH

*sident
and Chief Executive Officer
First National Bank of Loudon County
Lenoir City, Tennessee

LESLIE B. LAMPTON
President
Ergon, Inc.
Jackson, Mississippi

-I




President and Chief Executive Officer
Unifirst Bank for Savings, F.A.
Jackson, Mississippi

23

Professor of Economics
Southern University
Baton Rouge Campus
Baton Rouge, Louisiana

New Director for 1985
JAMES G. BOYER
Chairman, President, and
Chief Executive Officer
Gulf National Bank at Lake Charles
Lake Charles, Louisiana

Statement of Condition
Decsmber31.1983

December 31,1984

$ 371,000,000

$ 360,000,000

161,000,000

161,000,000

42,238,437

49,655,950

Loans and Securities

3,870,336,372

4,Ol8,821,491

Cash Items in Process of Collection

1,209,887,887

541,108,045

34,189,340

39,275,879

394,674,961

437,619,842

35,376,273

2,276,686,836

$6,118,703,270

$7,884,168,043

$3,155,985,661

$5,216,469,381

ASSetS
Gold Certificate Account
Special Drawing Rights Certificate Accwnt
Coin

Bank Premises
Other Assets
lnterdistrict Settlement Account
Total Assets

Liabiliii
Federal Reserve Notes
Deposits*

1,578,055,351

1,756,695,061

Deferred Availability Cash Items

1,074,442,781

545,785,769

67,137,577

96,905,432

0

0

Other Liabilities
lnterdistrict Settlement Account

$5,875,621,370

$7,615,855,643

$ 121,540,950

$ 134,156,200

121,540,950

134,l 56,200

Total Capital Accounts

$ 243,081,900

$ 268,312,400

Total Liabilities and Capital Accounts

$6,118,703,270

$7,884,168,043

Total Liabilities

capital Accarnts
Capital Paid In
Surplus

'Includes Depository lnstiluton Acawnts collected Funds Due to Other F.R Banks U S Treasurer - General Acawnt













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