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FEDERAL RESERVE BANK
CF SI. LOUIS

r-- MAR 9

Pi. '2

40

SECREiARY fG PRESIDENT

CONTENTS
4

President’s Letter

6

Changing of the Guard

8

The New Team

10

Third District Highlights

11

Departmental Reports

12

Accounting

13

Audit

14

Bank Examination

16

Bank Relations and Services

18

Meeting the Public

20

Cash

21

Collections

22

Credit Discount

23

Data Processing

24

Government Securities and Safekeeping

25

Personnel

26

Public Information

27

Research

28

Other Departments

31

Board Meeting

32

Organization Chart

34

Directors and Officers

35

Comparison of Earnings and Expenses

36

Comparative Statement of Condition

3

Assistant Vice President Al Spencer
and Vice President Ed Aff discuss
borrowing trends of member banks with
Senior Vice President David Melnicoff.

CREDIT DISCOUNT
Federal Reserve Banks are empowered
to supply funds under prescribed
conditions to member banks through
extension of credit. The Credit
Discount Department administers
loans to member banks. It is also
responsible for administration of
defense production loans on behalf
of Government agencies guaranteeing
the loans under the Regulation V
Program, and for the administration
of the Foreign Credit Restraint
Program. In addition, the department
maintains records of the earning
assets of the Bank and of the accruals
and income thereon, including
participations in the System Open
Market Account, holdings of Foreign
Currencies and Foreign Loans on Gold.

22

Member banks borrowed more at this Bank’s discount
window in 1969 than in any previous year in the decade. The
number of advances was twice that of 1968 and daily average
borrowings of $34.2 million more than tripled the previous year’s
daily average.
The need for funds coupled with the reduction of bank
holdings of United States Government securities brought an
increase in the use of items other than Governments as collateral
for advances made to member banks. Sixty-four advances were
made on eligible paper pledged as collateral, exceeding the
number made in the preceding twelve years combined. These
advances represented 46 percent of all advances made during
the year and the amount, $2.9 billion, was more than had been
advanced on eligible paper in the preceding thirty-five years.
Obligations of Federal agencies were pledged as collateral
on 147 advances made during the year. An amendment of the
Federal Reserve Act late in 1968 made agency obligations,
formerly acceptable only under Section 10(b), eligible as col­
lateral for advances at the Bank’s discount rate.
Nine advances were made in 1969 under Section 10(b) of
the Federal Reserve Act. This was more than the total number
of such advances made at this Bank during the past twenty-six
years. Under Section 10(b), collateral pledged by a member bank
may consist of any asset acceptable to the Reserve Bank even
though it is ineligible for advances at the regular discount rate.
Reserve city banks became increasingly reliant on the
Federal funds market in 1969. Net weekly purchases in most
weeks exceeded the highest weekly purchases of the previous
year. The combination of Federal funds purchased and Euro­
dollars acquired provided the city banks with more than 100
percent of required reserves in several weeks of the year.
Country member banks in the District continued to supply
large amounts of Federal funds to the market.
The discount rate was raised from 5^) percent to 6 percent
early in April. The present 6 percent rate matches the record
high charged at this Bank in 1920 and 1921. For the second
consecutive year, 76 percent of the advances made to member
banks were based on telephone requests for credit.
The Voluntary Foreign Credit Restraint Program, now five
years old, was administered at this Bank during the year with
no major difficulties. Guidelines for the program were revised
by the Board in April and December, principally to give greater
flexibility and more explicit recognition to the established
priority for financing United States exports. The December
revisions continued general ceilings applicable to banks and
established separate, additional ceilings covering export term
loans made by the banks.
For nonbank financial institutions, the December revisions
brought long-term credits and investments in Japan under the
controls of the guidelines. These credits and investments were
specifically exempted under former guidelines.

A workman installs Data Processing Department’s new computer,
an IBM System 360/40.

DATA PROCESSING
The Data Processing Department is
primarily a service unit for other
departments of the Bank. It takes
source documents from these
departments and transcribes them
into punch cards that may be sorted,
counted, and recorded by electronic
and mechanical equipment. It then
produces desired information
and necessary records.

In the final year of the sixties, the theme seemed to be
“business as usual” despite the turmoil caused by continual
change and expansion. In 1960 there was not a computer to be
found in the Bank and the old Machine Tabulating Department
numbered only thirty-nine employes. Today, three computers
are housed in the Data Processing Department and fifty
employes are involved in the operation.
The first computer was installed in 1961. The equipment
did a fine job for many years. However, as computer technology
improved, it seemed evident that the bank should give con­
sideration to upgrading its general purpose equipment. As a
result, during 1969, payroll checks and the deposit ledgers
together with other related reports such as group clearings and
automatic charges for cash letters were transferred to larger,
more modern equipment.
Changes have not been limited to those of a technological
nature. Last year the automation of “Book Entry” accounting
for United States Government Securities was completed, and
an entirely new approach was developed for processing Govern­
ment Food Stamps. The Bank has also joined in the initial stages
of a plan designed to automate the reconcilement of its accounts
with other Federal Reserve Banks.
Planning for the future still consumes a great deal of time.
At present, a new computer room is under construction. In the
seventies it is expected that the Bank will centralize all of its
computational capabilities in one area and, as a result, will be
able to use larger, faster equipment and do a more efficient job.
By mid-1969 over fifty programs had been written to handle
an integrated system of deposit ledger accounting and were
in the testing stages. At that time management believed that
progress would be more orderly if good administrative controls
could be installed early in the development of our third genera­
tion system approach. It seemed desirable to make a separation
between operations and programming. As a result, the Com­
puter Services Department was spun off from the Data Pro­
cessing Department. This new department is responsible for the
planning, documentation, programming and implementation of
accounting systems which are to be processed by the computer.
23

Customers line up
to submit tenders
for Treasury Bills.

GOVERNMENT
SECURITIES
AND SAFEKEEPING
As Fiscal Agents of the United States,
Federal Reserve Banks sell new
issues of Treasury marketable
securities to the general public,
conduct refunding operations,
exchange and transfer bonds and
notes, pay Government and agency
coupons, maintain book-entry control
of outstanding Treasury securities
balances, and maintain Treasury Tax
and Loan Accounts. Reserve Banks
are authorized to issue, reissue,
and redeem United States Savings
Bonds and Retirement Plan Bonds, to
issue and reissue United States
Savings Notes, and to process and
pay Armed Forces Leave Bonds.
Reserve Banks qualify commercial
banks and others as issuing agents of
Series E Savings Bonds and of
savings notes, and as paying agents
of Series A through E bonds and of
matured Series F, G, J, and K bonds.

Reserve Banks also act as depositaries
for securities owned by member banks.
All securities are serviced as to
collection of interest, redemptions,
and exchanges. Purchase or sale of
any Government security can be made
through Reserve Barks by member
banks without charge.

24

The past year brought a “new look” to the Government
Securities and Safekeeping Department. New equipment was
purchased including a Bell and Howell inserting and sealing
machine. The antiquated equipment it replaced was declared
surplus with the Treasury Department.
In December the interest rate on U. S. Savings Bonds was
upped to 5 percent. At the same time the Treasury Department
announced that the sale of U. S. Notes (Freedom Shares) would
be discontinued June 30, 1970. Magnetic tape is now being
used for the issuance of Series E Bonds on computer in cases
where large payroll deduction plans make it feasible.
During the year all transferable Treasury securities held
by this Bank were converted to Treasury Book-Entry securi­
ties. This includes not only all transferable Treasury securities
held in safekeeping for the account of member banks but also
the pledged accounts. The conversion made available needed
vault space and eliminated the cutting and handling of cou­
pons and the processing of definitive securities on certain
transactions.
The prevalent high interest rates on Government securities
has wakened the public to a greater awareness of the advantages
of this type of investment. As a result, there has been a tre­
mendous increase in the number of Treasury Bill tenders sub­
mitted by individual subscribers. The volume of transactions of
this nature reached new peaks during the last quarter of the
year.
Public interest was further stimulated when the Treasury
Department offered 8 percent Treasury Notes in October in
exchange for various securities maturing late in the year. The
response to the exchange offering increased the work load in
this Bank and other Reserve Banks and the resultant interest
of the public in the high yield increased the number of trades
handled by commercial banks. Purchasers, in most cases, re­
quested registered securities. Since this Bank is authorized to
issue registered securities an unprecedented number of requests
for registration was received and processed.
The department is currently undergoing a test program
on new high speed computer equipment for the wire transfer
of securities. The new process, expected to be in use by mid1970, will increase the efficiency of the transfers and provide
faster communications between the Reserve Banks on all wire
transfers and conventional messages.

BEEP boys meet with Phil Anderson
(second from left)
and Vice President Bill James
(far right standing) for briefing
on business practices.

PERSONNEL
The Personnel Department administers
Bank policies and programs of
employment, job classification, and
salary administration, together with
payroll operations, including
Retirement System and Social
Security matters. Employe counseling,
the direction of the cafeteria, the
Medical Division, and employe
and supervisory development and
education are among its other
major responsibilities.

Manning the ramparts isn’t easy these days. With compe­
tent personnel increasingly difficult to locate and attract in a
tight labor market, the Personnel Department has found it
necessary to reshuffle more than ever before in order to fill
requisitions for help in the various departments of the Bank.
In 1969, no fewer than 244 intradepartmental and 38 inter­
departmental transfers were effected. This resulted in the
establishment of 27 new jobs and the re-evaluation of 19 others
because of significant changes in duties and responsibilities.
In order to smooth this transition, members of the depart­
ment conducted 80 supervisory training sessions. In addition,
orientation meetings were held periodically for new employes.
Last year, the turnover rate in the Bank reached 26.9 per­
cent-highest of the past decade. The silver lining began to
peep through in the last quarter of the year, however, when
the number of separations slowed considerably. This might be
attributable to a slight easing of labor market pressures, but
the department is more inclined to believe that it is because
channels of communication within the Bank have been im­
proved. An attempt to unionize Bank employes brought to the
surface individual grievances and misconceptions about per­
sonnel policies and practices. As a result, departmental super­
visors were urged to coordinate employe objectives with
management objectives.
Outside recruiting programs, including college visitations,
were increased. In 1969, approximately 2,500 individuals applied
for work at the Bank and of these, 276 were hired.
The Bank continued to support employes’ efforts toward
self improvement. Last year, 92 employes attended a variety
of educational institutions.
During the year several important changes were made to
keep employe benefits competitive with other leading firms.
A Thrift Plan became effective at year’s end and 93 percent
of the employes are participating. At the same time, retirement,
disability and death benefits were improved. Also, benefits
under the hospitalization-surgical and major medical insurance
programs were broadened.
While the Bank continued its practice of granting merit
salary increases where appropriate, bi-annual salary surveys
showed that salaries in the Philadelphia area rose rapidly in
1968-1969. The Board of Directors approved a 5 percent in­
crease in January and a 4 percent increase in August for all
employes.
The Bank introduced fair employment practices nearly
two decades ago—long before it became the thing to do.
Presently, more than 18 percent of the Bank’s work force is
non-white.
The Business Experience-Education Program initiated two
years ago to provide high school students with work experience
and income, as well as motivate them to remain in school, is
working well.
The one solicitation for charity which is permitted in the
Bank is for the United Fund Torch Drive. The Bank attained
105 percent of assigned quota in 1969 with 92 percent of the
officers and employes participating.
Members of the department, as well as others of the Bank
staff, continued to assist community agencies in the develop­
ment and utilization of human resources in the Philadelphia
area.

25

Mary Ann Powell
helps area high school teacher
select bank publications for classroom use.

PUBLIC INFORMATION
This function provides the business
community and the public at large
with information about the Federal
Reserve System and its policies,
this Bank, and the District and national
economies. In cooperation with
other departments, officers and staff
members write articles, deliver
speeches, organize seminars, and
represent the Bank at various
conferences. Improvement of
economic education in local high
schools and colleges is a major
objective. Public Information personnel
prepare and distribute press releases
emanating from the Bank and
maintain personal liaison with
communications media. Guided tours
of the Bank are conducted on a
regular basis.

26

Much like the bouquet of a fine old wine, the Public
Information function varies somewhat with each year. 1969
was a vintage year because it presented the department greater
opportunity to acquaint the public with the purposes and
functions of the Federal Reserve System.
One of the year’s highlights was an all-day seminar for
economics teachers held at the Bank in November. The seminar,
co-sponsored by the Delaware Valley Council on Economic
Education, was attended by 120 Philadelphia and suburban
high school economics teachers for the purpose of discussing
the “Economics of the Cities.” Dr. Ralph Kaminsky of New
York University and Dr. Warren Gustus, Economic Advisor
for the Bank, were the principal speakers.
Late in the fall a series of four seminars was held at the
Millersville, Bloomsburg, West Chester and Trenton State
Colleges. These were attended by economics professors serving
colleges in each of the areas visited. Current issues confronting
the economy were discussed with economists from the Depart­
ment of Research.
Early in December the department hosted a group of high
ranking military officers enrolled as resident students of the
Industrial College of the Armed Forces, Fort McNair, Wash­
ington, D. C. This program, initiated in 1968, has become a
permanent departmental feature. The “top brass” has ex­
pressed a desire to visit our Bank regularly as part of a field
trip they make each year to study industrial plants in the
Philadelphia area.
During the year the pamphlet, How to Interpret Federal
Reserve Reports, was revised and made available for distribu­
tion. The pamphlet has been renamed Guide to Interpreting
Federal Reserve Reports. Another of our publications, Defending
the Dollar, is now being revised and updated.
An addition to the Series for Economic Education was
ready for distribution at year’s end. The new pamphlet, Truth
in Lending/What it Means for Consumer Credit, is designed to
help the consumer have a better understanding of Regulation Z.
S.E.E. pamphlets continued to be a “hot” item. More than
1,500,000 copies were distributed during the year along with
approximately 100,000 copies of other publications.
Students and bankers continue to find tours of the Bank
interesting and educational. More than 2,000 availed them­
selves of the privilege during the course of the year, and it is
necessary to schedule tours well in advance.
In 1969 all reasonable requests for speakers were accommo­
dated. Approximately 200 speeches were given by Bank per­
sonnel, including special talks on the new Truth in Lending Law.

Warren J. Gustus, Economic Advisor for
the Bank, discusses current monetary policy
and economic trends before a luncheon
meeting of educators in the Whittier Room.

RESEARCH
The principal functions of the
Department of Research are to provide
basic data and analyses needed
in the formulation and evaluation of
Federal Reserve policy; to keep
abreast of national and international
developments; to analyze regional
growth within the District; to
study banking and financial markets
and the theory and techniques
of central banking; to maintain a
cooperative liaison with the financial,
business, academic, and civic
communities; and to contribute to the
public’s understanding of monetary
policy and the workings of the
economy.

The principal responsibility of the staff of the Research
Department is to contribute to the formulation of the System’s
monetary policy. To fulfill that responsibility requires collec­
tion of sufficient, accurate, and timely data; processing of data
into the most usable formats; careful economic analysis; and
appropriate dissemination of the research results.
As changes take place in commercial banking, methods are
being devised to gather information which will be useful to
those who advise on policy decisions. During this past year, a
statistical report was initiated which showed in detail the
various sources of nondeposit funds tapped by commercial
banks. Also, a new panel of reporting banks began to supply
data regarding their activities in the consumer installment loan
area, thereby furnishing more reliable information in this
important aspect of economic activity. During the year, a panel
of banks was selected to take part in a Demand Deposit Owner­
ship Survey which will be in full operation by mid-1970.
Throughout 1969 efforts were made to improve the quality and
timeliness of all statistical series, so that information could be
disseminated as rapidly as possible.
Plans have been made for significant improvements in
computer support for research operations with the installation
of an IBM 360/40 System in January 1970. The model 40
replaces the model 30 used by Research Department personnel
for two years and is one of two similar systems to be shared by
all computer users in the Bank. The increase in size and speed
will upgrade current statistical operations and provide better
service to the economists.
Analyses made by the staff of economists were presented
in Open Market briefing sessions, in meetings of the Bank’s
Board of Directors, in System committee meetings and in
meetings of civic, trade and academic groups throughout the
District. The department has established a series of monthly
seminars in which academic economists and other outside
experts join with staff economists in discussing current theoret­
ical and policy issues. This enables the department to keep
abreast of economic research being done elsewhere and pro­
vides a forum for presentation of the department’s research
findings to other experts.
Although research analyses are disseminated in many
forms, a significant number are presented in the Business
Review, the department’s monthly publication. The mailing list
of the Business Review was revised in 1969. At the same time,
a survey of subscribers was made in an attempt to learn some
of the characteristics of the Review’s audience. Information
gained through the survey should enable the staff to meet the
needs of readers more effectively.

27

BUILDING

OTHER
DEPARTMENTS

The Building Department is responsible for the care, clean­
ing, operation, maintenance and alteration of the physical
plant. Alteration played a major part in the department’s
activities in 1969 as every effort was made to keep an old
building functioning like new. Security measures called for
relocation of the Guard Control Station and the installation
of new security doors in strategic areas of the Bank. New
acoustical ceilings were installed on certain floors and lighting
fixtures were redesigned and modernized. The Government
Securities and Safekeeping Department was completely rear­
ranged and renovations in the vault, begun in 1968, were
completed during the year. Department personnel are presently
installing enclosed computer areas on the third and fourth
floors of the Bank building.

FEDERAL TAXES
Federal Reserve Banks, as Fiscal Agents of the United
States, are authorized to accept tax funds either from employes
directly or through qualified commercial banks. In 1969 this
department processed one million more receipts than in 1950.
During that period the dollar volume rose from $6 million to
$7 billion. Federal Tax procedures have been changed many
times over the years in order to speed the collection of funds.
To cope with these changes and the increase in volume more
sophisticated equipment is acquired regularly. In 1970 the
internal processing of the taxes will be committed to new third
generation computer equipment.
Tony Teti, Assistant Head of the Building
Department, supervises the construction of
a new computer room.

MEDICAL
Bank employes and their immediate families are again
eligible to draw on the Red Cross Blood Bank this year. One
hundred and sixty-six volunteer blood donors were accepted,
exceeding the Bank’s required quota. And would you believe—
again in 1969 more than 13,000 employe cases were examined
and treated by medical personnel.

CAFETERIA
Cafeteria personnel, all Bank employes, managed to per­
form a modern miracle in 1969. Quality meals were served to
approximately 650 employes each day plus an average of
between 75 and 100 weekly guests at no advance in prices. This
takes a bit of doing with the cost of food steadily moving
upward. Somebody must be doing something right.

EMERGENCY PLANNING
In carrying out a program designed to provide “insurance”
in the event a national emergency should force this Bank to
cease operations, a “vest pocket” branch of the Bank has been
established at the Relocation Office in Lewisburg. Reconstruc­
tion and test activities are performed on a regular basis by the
Relocation Office staff and at least once each year employes
of the Bank go to Lewisburg to test certain programs by recon­
structing the records.
28

GUARDS
The Guard Department is responsible for safeguarding
Bank property and personnel. The performance of this function
requires continual updating and improving of safety features.
In 1969 a new console was installed housing the complete
alarm system, teletype, PA system, monitors and some other
hush-hush equipment. Also, new doors controlled by maximum
security devices were installed at Bank entrances.

PRINTING
This department bore the brunt of 1969’s paper explosion.
Increased activity in the Regulations of the Board of Governors,
a one hundred percent increase in the number of Bank circulars
and a complete revision of the in-bank directory because of
bank mergers, title changes, etc., kept the personnel of the
department hopping all year. By year’s end the addressograph
section of the department had been revised, a complete revision
of the listings of emergency check and cash areas had been
effected and new large binders to accommodate the changed
format for Board Regulations were made available. The in­
creased work load made some changes of equipment necessary.
One addition, an automatic plate maker, has proven to be a
time and labor saver as it eliminates the making of negatives
and metal printing plates.

LEGAL
The Legal Department has the responsibility of protect­
ing the Bank’s legal rights and delineating functions in the
discharge of its legal obligations. It also represents the Bank in
legal actions in which the Bank may become involved. Routine
matters involve ascertaining the legal significance and inter­
pretation of regulations and laws as adopted by legislative
assemblies and the Board of Governors of the Federal Reserve
System. Moreover, the many contracts and agreements entered
into by other departments in the Bank must be prepared or
reviewed. Legal opinions are submitted on behalf of applica­
tions for mergers, branches and other matters involving legal
questions.

The new electronic console enables guard John Donaway to keep
a close watch on all strategic areas of the Bank.

29

PURCHASING
The Purchasing Department made a complete physical
inventory of all Bank-owned equipment in 1969. Machines and
furniture that could no longer be used by the Bank were sold
at auction to interested firms in the Philadelphia area. The
supply division of the department filled orders for nearly 2
million copies of Bank publications during the year.

VAULT
The Vault Department is accountable for the custody and
servicing of United States Government and other securities, and
the storing of currency and coin. These represent about $15
billion, so every precaution is observed to safeguard and facili­
tate the handling of this “hoard.” As an added security measure
all persons entering the vaults are now required to sign a vault
log. Early in the year, two compartments in the South Vault
housing unissued U. S. Savings Bonds and Notes and Retire­
ment Plan Bonds were placed under the direct supervision of
the Government Securities and Safekeeping Department.

Angelo Patrone stands watch as Joe Mullen and Joe Moritz of the
Cash Department deposit currency in the vault for safekeeping.

30

BOARD MEETING

Director Henry A. Thouron and
First Vice President-elect David C. Melnicoff
seem satisfied with the results of Board
meeting just finished.

First Vice President Robert N. Hilkert
and Directors Edward J. Dwyer and
D. Robert Yarnall, Jr., discuss some
unfinished business.

Senior Vice President Joseph R. Campbell and
Director H. Lyle Duffey tell newly elected
Director William H. Cosby (right) that it’s “only
the beginning” after Mr. Cosby’s first
meeting of the Board.

Chairman Willis J. Winn (left) and
Deputy Chairman Bayard L. England
“take a breather” after Board of Directors
meeting at the Bank.

Director Harold F. Still, Jr., Vice President
Edward A. Aff and President-elect David P.
Eastburn enjoy a chuckle after a
vigorous session.

31

BOARD OF DIRECTORS

FEDERAL
RESERVE

BANKING

BUSINESS

PUBLIC

“A” DIRECTORS

“B” DIRECTORS
PHILIP H. GLATFELTER, 111-1970
PRESIDENT AND CHAIRMAN
P. H. Glatfelter Co.
Spring Grove, Pa.

“C” DIRECTORS
WILLIS J. WINN - CH. - 1970
DEAN, WHARTON SCHOOL
University of Pennsylvania
Philadelphia, Pa.

HENRY A. THOURON - 1971
PRESIDENT
Hercules Incorporated
Wilmington, Del.

BAYARD L. ENGLAND-DEP. CH. - 1972
CHAIRMAN OF THE BOARD
Atlantic City Electric Company
Atlantic City, N. J.

EDWARD J. DWYER - 1972
PRESIDENT
ESB Incorporated
Philadelphia, Pa.

D. ROBERT YARNALL, JR.-1971
PRESIDENT
Yarway Corporation
Blue Bell, Pa.

H. LYLE DUFFEY-1970
EXECUTIVE VICE PRESIDENT
The First National Bank of McConnellsburg
McConnellsburg, Pa.

BANK OF
PHILADELPHIA

HAROLD F. STILL, JR. - 1971
PRESIDENT
Central-Penn National Bank
Bala Cynwyd, Pa.

WILLIAM R. COSBY - 1972
PRESIDENT
Princeton Bank and Trust Co.
Princeton, N.J.

COMMITTEES OF THE BOARD

CHAIRMAN

EXECUTIVE

DEPUTY CHAIRMAN

WILLIS J. WINN

CHAIRMAN OF THE BOARD

BAYARD L. ENGLAND

AND 3 DIRECTORS

FEDERAL RESERVE AGENT

BUDGET
BUILDING
PERSONNEL

CHAIRMAN OF THE BOARD
AUDIT

WILLIS J. WINN
SECRETARY

V. P. & GENERAL AUDITOR

W. F. STAATS

G. W. METZ

ASS'T FED. RES. AGENT

E.

D.

KERNS

I

I
ALTERNATES

ASS’T GENERAL AUDITOR

P. M. DiPLACIDO
T. J. QUINN
H. A. RICKERT, JR.

A. L. MAGEE

R. W. Yarroll

PRESIDENT

KARL R. BOPP
OFFICERS’

OFFICERS’ COUNCIL

FIRST VICE PRESIDENT

DISCOUNT COMMITTEE

OTHER OFFICERS’ COMMITTEES
OPERATIONS AND INFORMATION
SYSTEMS

BUDGET AND PURCHASING
BUILDING AND SPACE-

ROBERT N. HILKERT

EMERGENCY PLANNING

PERSONNEL
-- —------—1

SENIOR
VICE PRESIDENT

SENIOR
VICE PRESIDENT

SENIOR V. P.
& GENERAL COUNSEL

SENIOR
VICE PRESIDENT

J. R. CAMPBELL

D. P. EASTBURN

J. V. VERGARI

D. C. MELNICOFF

L

1

LJ

I

‘

l-iiiir

_____________________

VICE PRESIDENT

VICE PRESIDENT

VICE PRESIDENT

VICE PRESIDENT

W. A. JAMES

R. E. HAAS

E. A. AFF

H. BARRIE

VICE PRESIDENT

N. G. DASH

M.A. Schwinhart

ECONOMIC ADVISER
W. J. GUSTUS

1

ASS’T
VICE PRES.

SENIOR
ECONOMIST

SENIOR
ECONOMIST

ASS’T
VICE PRES.

ASS’T
VICE PRES.

ASS’T
VICE PRES.

ASS’T
VICE PRES.

J. M.
CASE

M. H.
WILLES

W. F.
STAATS

K. M.
SNADER

W. R.
MOLL

J. A.
AGNEW

A. A.
KUDELICH

E. C. Lodge

J.J. Kiefer
J. J. Brenner

T. J. Quinn

J. R. Traynor
D. L. Matteo

r

ASS'T
VICE PRES.
A.
SPENCER,

JR.

J. B. Everman

ASS’T
VICE PRES.

ASS’T
VICE PRES.

ASS’T
VICE PRES.

ASS’T
VICE PRES.

D. R.
CONNOR

J. P.
BESSE

R. P.
SUDDERS

NELSON

J. H. Muntz

K. E. Wren

L
V.
P.
J.

Arnold
E. J. Fitzpatrick
F. Phelan
M. DiPlacido
McAteer

H. J.

CHIEF
EXAMINING OFFICER

J. P.
GIACOBELLO

1

E. D. Kerns
r

EXAMINING OFFICERS

ASSISTANT
PERSONNEL OFFICER

ASS’T
COUNSEL

BANK
SERVICES OFFICER

PUBLIC INFOR­
MATION OFFICER

SECURITIES OFFICER

D. P.
NOONAN

H. H.
HOLLOWAY

S. J.
CULBERT.JR.

G. C. HAAG

E. W. LOWE

T. K. DESCH

W. L. ENSOR

J. R. Joyce
A. J. Snyder, M.D.

A. J. McKinley

J. H. JAMES

BANK RELA­
TIONS AND
SERVICES

LEGAL
AFFAIRS

CAFETERIA
L. E.
MARKFORD

PUBLIC
INFORMATION

FUNCTIONAL
COST
ANALYSIS

DATA

PROCESSING
PLANNING
PROGRAMMING

GOVERNMENT
SECURITIES
AND

SAFEKEEPING
CURRENCY
VERIFICATION

BANK VISITS

BANK

RESEARCH

STATISTICS

PERSONNEL

EXAMINATION

PUBLICATIONS

LIBRARY

MEDICAL

REGULATIONS
AFFECTING
MEMBER
BANKS

CURRENCY
AND COIN
POSTMASTERS’
DEPOSITS

POST OFFICE
VAULT

COLLECTIONS
AND ADMIN­
ISTRATION
FOOD STAMPS

CHECK
PROCESSING

CHECK
ADJUSTMENT
AND
CONTROL

JANUARY 1, 1970

TRUTH
IN
LENDING

CREDITDISCOUNT
REGULATION
"V”

BALANCE OF
PAYMENTS
PROGRAM

BUILDING

ACCOUNTING

PRINTINGCIRCULARS

BUDGET
EMERGENCY

PURCHASING

PROGRAM
FILING AND

TELEPHONE

RECORDS

STORAGE

GUARDS

DIRECTORS
Chairman
Willis J. Winn, Dean
Wharton School of Finance and Commerce, University of Pennsylvania
Philadelphia, Pa.

Deputy Chairman
Bayard L. England, Chairman of the Board
Atlantic City Electric Company
Atlantic City, N. J.

William R. Cosby
President
Princeton Bank and Trust Company
Princeton, N. J.

Philip H. Glatfelter, III
President and Chairman
P. H. Glatfelter Co.
Spring Grove, Pa.

H. Lyle Duffey
Executive Vice President
The First National Bank of McConnellsburg
McConnellsburg, Pa.

Harold F. Still, Jr.
President
Central-Penn National Bank
Bala Cynwyd, Pa.

Edward J. Dwyer
President
ESB Incorporated
Philadelphia, Pa.

Henry A. Thouron
President
Hercules Incorporated
Wilmington, Del.

D. Robert Yarnall, Jr.
President
Yarway Corporation
Blue Bell, Pa.

OFFICERS
Karl R. Bopp, President
Robert N. Hilkert, First Vice President

Joseph R. Campbell, Senior Vice President
David P. Eastburn, Senior Vice President
David C. Melnicoff, Senior Vice President
James V. Vergari, Senior Vice President and
General Counsel
Edward A. Aff, Vice President
Hugh Barrie, Vice President
Norman G. Dash, Vice President
Ralph E. Haas, Vice President
William A. James, Vice President
G. William Metz, Vice President and General Auditor
James A. Agnew, Assistant Vice President
Jack P. Besse, Assistant Vice President
Joseph M. Case, Assistant Vice President
D. Russell Connor, Assistant Vice President
Alexander A. Kudelich, Assistant Vice President
Warren R. Moll, Assistant Vice President
Henry J. Nelson, Assistant Vice President

Kenneth M. Snader, Assistant Vice President
Albert Spencer, Jr., Assistant Vice President
Russell P. Sudders, Assistant Vice President
James P. Giacobello, Chief Examining Officer
Thomas K. Desch, Examining Officer
William L. Ensor, Examining Officer
Jack H. James, Examining Officer
Leonard E. Markford, Examining Officer
Warren J. Gustus, Economic Adviser
William F. Staats, Secretary and Senior Economist
Mark H. Willes, Senior Economist
Samuel J. Culbert, Jr., Bank Services Officer
George C. Haag, Public Information Officer
Hiliary H. Holloway, Assistant Counsel
Eugene W. Lowe, Securities Officer
A. Lamont Magee, Assistant General Auditor
David P. Noonan, Assistant Personnel Officer

MEMBER OF FEDERAL ADVISORY COUNCIL
George H. Brown, Jr., Chairman of the Board, Girard Trust Bank, Philadelphia, Pa.

January 1, 1970

34

COMPARISON OF EARNINGS AND EXPENSES

CURRENT EARNINGS:

1969

1968

From U.S. Government securities..................................
From discounts and advances and miscellaneous
sources..........................................................................

$ 164,711,277.68

$ 136,299,631.06

8,370,373.52

4,604,275.39

Total current earnings.............................................

173,081,651.20

140,903,906.45

Operating expenses (after deducting reimbursable or
recoverable expenses)...................................................
Federal Reserve currency................................................
Assessments for expenses of the Board of Governors. . .

10,700,943.23
1,262,303.71
778,500.00

9,584,109.40
1,384,812.91
749,900.00

Total net expenses...................................................

12,741,746.94

11,718,822.31

Current Net Earnings...........................................................................

160,339,904.26

129,185,084.14

Profit on sales of U.S. Government securities (net). . . .
Miscellaneous non-operating income..............................

319,339.61

40,879.36
426,673.50

Total additions.........................................................

319,339.61

467,552.86

Loss on sales of U.S. Government securities (net)........
Miscellaneous non-operatingexpenses.............................

316,619.68
25,103.59

8,869.37

Total deductions.......................................................

341,723.27

8,869.37

Net additions (deductions)......................................................

22,383.66

458,683.49

Net earnings before payment to U. S.Treasury....................

160,317,520.60

129,643,767.63

Dividends Paid........................................................................
Paid to U.S. Treasury (interest on Federal Reserve notes). .
Transferred to Surplus............................................................

1,999,838.29
157,082,482.31
1,235,200.00

1,933,570.76
126,754,046.87
956,150.00

$ 160,317,520.60

$ 129,643,767.63

NET EXPENSES:

ADDITIONS TO CURRENT NET EARNINGS:

DEDUCTIONS FROM CURRENT NET EARNINGS:

35

COMPARATIVE STATEMENT OF CONDITION

ASSETS

Dec. 31, 1968

Dec. 31, 1969

GOLD CERTIFICATE ACCOUNT.............................

$

525,670,746.02

$

494,257,793.64

FEDERAL RESERVE NOTES OF OTHER
FEDERAL RESERVE BANKS............................

34,613,760.00

35,063,655.00

OTHER CASH.................................................................

5,034,092.41

4,901,516.20

LOANS AND SECURITIES:
Discounts and advances............................................
United States Government securities.......................
Total Loans and Securities................................

650,000.00
3,071,751,000.00
3,072,401,000.00

100,000.00
2,810,204,000.00
2,810,304,000.00

OTHER ASSETS:
Cash items in process of collection...........................
Bank premises............................................................
All other......................................................................

729,778,399.54
2,475,074.94
125,278,446.65

634,903,044.39
2,358,817.56
257,665,905.93

Total Assets.....................................................................

4,495,251,519.56

4,239,454,732.72

NOTE LIABILITIES:
Federal Reserve notes................................................

2,756,766,121.00

2,615,922,686.00

DEPOSITS:
Member bank—reserve accounts..............................
United States Government........................................
Foreign........................................................................
All other......................................................................
Total Deposits....................................................

986,466,483.93
70,869,685.64
6,760,000.00
17,964,564.87
1,082,060,734.44

991,103,096.04
522,375.94
11,660,000.00
13,321,161.21
1,016,606,633.19

OTHER LIABILITIES:
Deferred availability cash items................................
All other......................................................................
TOTAL LIABILITIES.....................................

557,759,990.72
30,630,673.40
4,427,217,519.56

520,862,792.23
20,499,021.30
4,173,891,132.72

CAPITAL ACCOUNTS:
Capital paid in...........................................................
Surplus........................................................................

34,017,000.00
34,017,000.00

32,781,800.00
32,781,800.00

Total Liabilities and Capital Accounts.................

$ 4,495,251,519.56

$ 4,239,454,732.72

LIABILITIES

36

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