View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

1 9 5 7 O P E R A T IO N S
OP THE FEDERAL RESERVE BANK OF ST. LOUIS

l H E OPERATIONS O F A R ESERV E BANK involve an almost unbelievable number of items and
astronomical dollar totals. It is not unusual for one
bank to process several million checks, coins, pieces
of currency, bonds and other Rnancial claims in a single
day with an aggregate value in billions of dollars.
These activities contribute substantially to the eiBcient
functioning of the economy, but they are meshed so
smoothly into the banking structure as to attract little
public attention.

in the bank. The department handled 569 million
pieces of currency and coin during the year, aggre­
gating $1,230 million. These were gains of 2 per cent
and 1 per cent, respectively, from the previous year.
The Fiscal Agency Department handled (issued, ex­
changed and redeemed) somewhat more Savings
Bonds during 1957 than in 1956, but the total dollar
volume of the bonds handled declined. The number
and volume of other Government issues processed in
1957 were much greater than in 1956.

During the year 1957 many activities of the Federal
Reserve Bank of St. Louis continued to expand from
the record levels reached in the previous year. The
need for a few operations, however, moderated. The
accompanying table presents a rough idea of the
size and scope of operations during the year.

During 1957 the bank transferred about $41 billion
of funds. Although this was 2 per cent less than the
peak amount in the year before, somewhat more serv­
ice was provided in terms of number of transactions,
136,000 as against a previous high of 133,000 in 1956.
The activity in non-cash collections, which consists of
handling such items as drafts, promissory notes, stocks,
bonds and coupons, was higher in 1957 than during
the previous year. The amounts of securities received,
released and held by the Safekeeping Department of
the bank were also greater during 1957. In addition
the department clipped more coupons in 1957 than in
1956, but for a somewhat smaller dollar value. During
the year 1957, securities were held for 95 per cent of
the member banks and 47 per cent of the nonmember
banks in the Eighth District. All securities held for
nonm em ber banks were Savin gs Bonds or issues
pledged as collateral to Treasury Tax and Loan Ac­
counts and to secure deposits of public money.

Three activities of the bank are notable for their
consistently large volume; they are check collection,
currency and coin handling and Rscal agency opera­
tions. Processing of checks and other transit items
continued to be the biggest single function of the
bank in terms of number of employees. Both the num­
ber and dollar volume of checks processed, however,
decreased from the peak reached in 1956, with the de­
cline centering in Government checks and postal
money orders. The number of individual and business
checks coming through the bank continued to grow.
The drop in Government checks processed was due
to a change in procedures by the Treasury Depart­
ment, which discontinued its paying operations at the
Federal Reserve banks. Postal money orders continued
to decline in use, a trend that has been going on for
several years.
When measured in terms of number of individual
items handled, the Money Department was the largest
Page 20




During 1957 the discount rate of the bank was
changed twice. It was raised from 3 per cent to a
level of 3% per cent in August, and it was reduced
to 3 per cent again in November. The volume and
number of loans to member banks were somewhat

less in 1957 than during 1956, but about 8 per cent
more member banks were accommodated.

COMB!NED VOLUME OF OPERATIONS

Many other tasks, which cannot be readily measured
by statistics, were performed by the Federal Reserve
Bank of St. Louis during 1957. Much effort went into
gathering, processing and interpreting data on the
economy to assist officers and directors of this bank
(and others of the Federal Reserve System) in carry­
ing out their responsibility to adjust the supply, cost
and availability of money and credit to the needs of
the economy.

AND LtTTLE ROCK BRANCHES iN 1 957 AND 1956

During the past year the Audit Department made
periodic checks in all operating departments to verify
the accuracy of the records and compliance with laws
and regulations. The Accounting Department not only
recorded all internal expenses and income, but also
kept track of transactions with other Reserve Banks
and those between this bank and district member
banks. The Examination Department, under estab­
lished policy, made examinations of state member
banks in the district.
Further, operations of the bank ran more smoothly
because of the efficient work of others such as person­
nel in the Planning, Machine Tabulation, Field Service
and Purchasing Departments, the legal counsel, libra­
rians, cafeteria workers, guards, maintenance men,
porters, cleaning force, telephone operators and
garage men.
During the year 1957, assets and liabilities of the
Federal Reserve Bank of St. Louis showed only mod­
erate net changes. Following is a brief comparative
statement of condition of the bank:

Number of Pieces Handled

1957
185,984,000

Checks (Total)...................................

1956
197,516,000

City Checks.....................................

30,185,000

28,347,000

Country Checks..............................

114,625,000

110,593,000

Government Checks.....................

26,791.000

42,992,000

Postal Money Orders

14,383,000

15,584,000

Currency..............................................

205,884,000

204,558,000

C oin.......................................................

362,840,000

355,360,000

Transfer of Funds

136,000

133,000

Non-cash Collections.......................

500,000

489,000

U. S. Government Interest Coupons

689,000

626,000

1,181

1,211

Discounts and Advances

Securities Received and Released

170,000

148,000

Coupons Detached

318,000

317,000

.

7,042,000

7,012,000

Other Government Issu es............

354,000

246,000

755,000

736,000

158,000

152,000

Checks Handled (Total)..................

^62,203,350,000

$64,102,854,000

City Checks..................................

39,504,868,000

39,468,688,000

Country Checks..............................

17,947,521,000

17,191,936,000

Government Checks.....................

4,496,416,000

7,171,032,000

Postal Money O rders..................

254.545,000

271,198,000

1,196,109,000

1,187,789,000

U. S. Savings Bonds Issued,
Exchanged and Redeemed
Withheld Tax Depository

Account Transactions

Dollar Volume

C oin.......................................................

33,751,000

32,227,000

Transfer of Funds..............................

40,720,435,000

41,409,687,000

Non-cash Collections.......................

346,683,000

346,052,000

U. S. Government Interest Coupons

A sse t:

(In thousands of dollars)

AT THE ST. LOUtS BANK AND THE LO U !SV !H E, MEMPHtS

79,281,000

70,376,000

3,416,365,000

4,640,220,000

33,609,000

34,278,000

Discounts and Advances
December 31,
1957

Cold CertiHcate Reserves..............................
Federal Reserve Notes of Other Banks
Other C ash .....................................................

$ 952,089
17,588
25,649

U. S. Government Securities.....................
Uncollected item s..........................................
Other A ssets...................................................
Total A ssets............................................

980,896
188,650
15,180
$2,180,487

^1956^
$ 865,073
13,676
23,358
1,100
1,027,452
208,733
14,799
$2,154,191

o/
Coupons Detached.......................

U. S. Savings Bonds Issued,
639,526,000
Other Government Issues

757,675,000

10,385,248,000

7,933,886,000

LiabHities a n d C ap ita) Accounts

Federal Reserve Notes (N et).......................

$1,226,564

$1,211,030

Member banks— reserve accounts .
U. S. Treasurer— general account.........
Other............................................................
Deferred availability item s.........................
Other Liabilities............................................
Total Capital Accounts..............................
Total Liabilities and Capital Accounts

699,440
25,982
15,176
163,043
439
49,843
$2,180,487

699,664
31,062
18,498
146,316
540
47,081
$2,154,191




Employment at the bank and branches totaled
1,114 at the end of 1957 compared with 1,145 at the
end of 1956. Reductions in personnel occurred at
St. Louis and Memphis, partially offset by slight in­
creases at Little Rock and Louisville.
Page 21

DtRECTORS A ND OFFICERS O F THE FEDERAL RESERVE BANK O F ST. LOU!S

February 5, 1958

Oncers

Directors

Pierre B. McBride, Chairman
the Board
Delos C. Johns, President
Guy S. Freutel, First Vice President
Howard H. Weigel, Vice President and Secretary
Joseph C. Wotawa, Vice President
Dale M. Lewis, Vice President
William J. Abbott, Vice President
George E. Kroner, Vice President
Earl R. Billen, Assistant Vice President
Willis L. Johns, Assistant Vice President
Stephen Koptis, Assistant Vice President
Woodrow W. Gilmore, Assistant Vice President
John J. Hofer, Assistant Vice President
Marvin L. Bennett, Assistant Vice President
W. E. Walker, Assistant Vice President
Paul Salzman, Assistant Vice President
Janes M. Geiger, Assistant Vice President
Orville O. Wyrick, C/tie/ Examiner
Wilbur H. Isbell, Assistant Chie/ Examiner
Gerald T. Dunne, Cotmse? and Assistant Secretary
George W. Hirshman, Genera? At/ditor

Pierre B. McBride, Chairman
J. H. Longwell, Deputy Chairman
S. J. Beauchamp, Jr.
H. Lee Cooper
Kenton R. Cravens

J. E. Etherton
Harold O. McCutchan
Leo J. Wieck

Jesse D. Wooten

UTILE ROCK BRANCH

T. Winfred Bell, Chairman
Robert H. Alexander
Donald Barger
J. W. Bellamy, Jr.

E. C. Benton
J. V. Satterfield, Jr.
Waldo E. Tiller

Fred Burton, Vice President and Manager
Sherley C. Davis, Cashier
Clifford Wood, Assistant Cashier
W. J. Bryan, Assistant Cashier

LOU<SV!LLE BRANCH

David F. Cocks, Chairman
Philip Davidson
Magnus J. Kreisle
W. Scott McIntosh

J. D. Monin, Jr.
Merle E. Robertson
John G. Russell

Donald L. Henry, Vice President and Manager
John W. Menges, Cashier
L. K. Arthur, Assistant Cashier
Clarence J. Woertz, Assistant Cashier

MEMPHtS BRANCH

Frank Lee Wesson, Chairman
John E. Brown
J. H. Harris
S. L. Kopald, Jr.




Simpson Russell
John D. Williams
John K. Wilson

Darryl R. Francis, Vice President and Manager
E. Francis DeVos, Cashier
H. C. Anderson, Assistant Cashier
Benjamin B. Monaghan, Assistant Cashier

The following designations and appointments were
made during 1957:

beginning January 1, 1958.
director since March 1954.

The Board of Governors of the Federal Reserve
System redesignated Mr. Pierre B. McBride, Louis­
ville, Kentucky, as Chairman of the Board of the
Federal Reserve Bank of St. Louis and Federal Reserve
Agent at the bank for the year 1958. Mr. McBride is
President of Porcelain Metals Corporation, Louisville,
Kentucky. He was appointed a Class C Director of
the bank in January 1957 and designated Chairman
and Federal Reserve Agent for that year. During the
six years immediately preceding his appointment to
the St. Louis Board, Mr. McBride served as a director
of the Louisville Branch of the Federal Reserve Bank
of St. Louis.

The Board of Governors of the Federal Reserve
System made the following appointments to the Boards
of Directors of the branches:

Mr. J. H. Longwell, Columbia, Missouri, was ap­
pointed by the Board of Governors as Deputy Chair­
man of the Board of Directors of the Federal Reserve
Bank of St. Louis for the year 1958. Mr. Longwell, a
Class C Director of the bank since January 1957, is
Director of Division of Agricultural Sciences at the
University of Missouri.
The Board of Governors also appointed Mr. Jesse
D. Wooten, of Memphis, Tennessee, a Class C Direc­
tor of the bank for a three-year term beginning Janu­
ary 1, 1958. Mr. Wooten is Executive Vice Presi­
dent of the Mid-South Chemical Corporation in Mem­
phis. As a director of the bank he succeeds Mr.
Joseph H. Moore, Charleston, Missouri, whose term
expired at the end of 1957.
During the year two directors were elected by the
member banks in the Eighth Federal Reserve District:
Mr. H. Lee Cooper, President, Ohio Valley Na­
tional Bank of Henderson, Henderson, Kentucky, was
elected by member banks in Group 2 as a Class A
Director of the Federal Reserve Bank of St. Louis
for a three-year term beginning January 1, 1958. He
suceeded Mr. Phil E. Chappell, of Hopkinsville, Ken­
tucky, whose term expired at the end of last year.
Mr. Cooper began his banking career in 1929 in
Smith Mills, Kentucky. He is a former director of the
Louisville Branch of the Federal Reserve Bank of
St. Louis, having served during the years 1946 through
1951.
Mr. Leo J. Wieck, Vice President and Treasurer,
The May Department Stores Co., St. Louis, Missouri,
was re-elected by member banks in Group 1 as a
Class B Director of this bank, for a three-year term




Mr. Wieck has been a

Mr. Robert H. Alexander, Farmer, Scott, Arkansas,
was appointed a member of the Little Rock Branch
Board for a three-year term beginning January 1,1958.
Mr. Waldo E. Tiller, President, Tiller Tie and
Lumber Company, Little Rock, Arkansas, was ap­
pointed a member of the Little Rock Branch Board
effective January 1, 1958, for the unexpired portion of
a term ending December 31, 1958.
Mr. Philip Davidson, President, University of Louis­
ville, Louisville, Kentucky, was reappointed as a
member of the Louisville Branch Board for a threeyear term beginning January 1, 1958.
Mr. Frank Lee Wesson, President, Wesson Farms,
Inc., Victoria, Arkansas, and President, Missco, Inc.,
Osceola and Blytheville, Arkansas, was appointed a
member of the Memphis Branch Board on October
3, 1957, for the unexpired portion of a term ending
December 31, 19j?8.
Mr. S. L. Kopald, Jr., Executive Vice President,
Humko Division, National Dairy Products Corpora­
tion, Memphis, Tennessee, was appointed a member
of the Memphis Branch Board for the unexpired por­
tion of a term ending December 31, 1960.
The Board of Directors of the Federal Reserve Bank
of St. Louis made the following appointments to the
Boards of Directors of the branches:
Mr. E. C. Benton, President, Fordyce Bank and
Trust Company, Fordyce, Arkansas, was reappointed
as a member of the Little Rock Branch Board for a
three-year term beginning January 1, 1958.
Mr. J. W. Bellamy, Jr., President, National Bank
of Commerce of Pine Bluff, Pine Bluff, Arkansas, was
appointed a member of the Little Rock Branch Board
for a three-year term beginning January 1, 1958.
Mr. W. Scott McIntosh, President, State Bank of
Hardinsburg, Hardinsburg, Indiana, was reappointed
as a member of the Louisville Branch Board for a
three-year term beginning January 1, 1958.
Mr. John G. Russell, President, The Peoples First
National Bank and Trust Company of Paducah,
Page 23

Paducah, Kentucky, was appointed a member of the
Louisville Branch Board for a three-year term begin­
ning January 1, 1958.
Mr. John E. Brown, President, Union Planters Na­
tional Bank of Memphis, Memphis, Tennessee, was
appointed a member of the Memphis Branch Board
on September 12, 1957, for the unexpired portion of
a term ending December 31, 1957. Mr. Brown was
reappointed as a member of the Memphis Branch
Beard for a three-year term beginning January 1,
1958.
Mr. Simpson Russell, President, The National Bank
of Commerce of Jackson, Jackson, Tennessee, was ap­
pointed a member of the Memphis Branch Board for
a three-year term beginning January 1, 1958.
The Board of Directors of the Federal Reserve
Bank of St. Louis also appointed Mr. William A. Mc­
Donnell, Chairman of the Board, First National Bank
in St. Louis, St. Louis, M issouri, a member of the
Federal Advisory Council to represent the Eighth
Federal Reserve District for the year 1958. Mr.
McDonnell served as a director of the Federal Reserve

Page 24




Bank of St. Louis from 1951 through 1956, and as a
director of the Little Rock Branch for the year 1944.
The following official appointments were made at
the Federal Reserve Bank of St. Louis and branches
during 1957: Guy S. Freutel was promoted to First
Vice President, effective April 1; Donald L. Henry
was appointed Vice President of the bank and Man­
ager of the Louisville Branch, effective March 1; John
W. Menges was appointed Cashier and Clarence J.
Woertz was appointed Assistant Cashier of the Louis­
ville Branch, effective March 1; Janes M. Geiger was
promoted to Assistant Vice President of the bank,
effective June 16, and Wilbur H. Isbell was appointed
A ssistant C h ief Exam iner, effective Septem ber 1;
E. Francis DeVos was appointed Cashier of the Mem­
phis Branch, effective September 1.
Frederick L. Deming resigned as First Vice Presi­
dent of the bank, effective March 31, 1957, to accept
the position of President of the Federal Reserve Bank
of Minneapolis. Victor M. Longstreet resigned as
Vice President of the bank and Manager of the Louis­
ville Branch, effective February 28, 1957. John J.
Christ retired as Assistant Vice President of the bank,
effective January 1, 1958.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102