Full text of Annual Report of the Federal Reserve Bank of Atlanta : 1985 Annual Report

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LIBRARY

FEDERAL RESERVE BANK
OF ATLANTA

FROM

T h e Federal Reserve Bank of Atlanta
interacts
with the public at large in
@
three distinct but related ways. The
President and Chief Executive Officer
of the Bank, Robert P. Forrestal, r e p
4 larly participates in the formulation
and implementation of monetary policy
for the nation through his service on
the Federal Open Market Committee,
the System's principal policymaking
arm. The Federal Reserve also is empowered to supervise and regulate cer
ctain financial institutions and to assist
these and other depository institutions
in troubled circumstances. Recently,
s System and Reserve Bank efforts in
this direction have been reviewed and
significantly intensified. Aside from
sharing in the System's monetary polk
acymaking and regulatory functions, the
Atlanta Fed, along with other Reserve
Banks, provides important financial
4services to depository institutions and
to the U.S.Treasury. This past year we
introduced several enhancements to
these services. In all of our activities
=the Federal Reserve Bank of Atlanta
emphasized what we regard as our
Bank's core values: integrity, quality
service, and cost effectiveness.
a
After reviewing how the U.S. economy fared in 1985 and outlining its
prospects and those of the Sixth District
+for this year, the essay that forms the
core of this report attempts to acquaint
readers with the central banks roles as
monetary policymaker and financial
'system regulator. Additionally, it highlights issues that bear on how these fune
tions are performed. While monetary
@policyis a powerful and flexible tool,
this report points out that there are liink
tations on what the Fed can do to foster
the ultimate goal of sustained, non> *inflationary
economic growth through
$ measures at its disposal. These limita
tions are imposed by the nature of
certain problems, including potential
vulnerabilities that could affect our
\j, financial system; growing sentiment in
favor of protectionism; the need for
"actual progress in reducing the federal
budget deficit; and, more generally,
social attitudes that threaten the outlook
J
for lasting economicgrowth. Ultimately,

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T H E

BOARDROOM

resolution of these issues rests with the
private sector-not only businesses but
also individuals such as those who read
this report. A capsule review of last
y e d s major developments in various
Atlanta Fed operations supplements
the essay and is followed by a statistical
summary of earnings and operations
for 1985.
We hope readers will find this annual
report both interesting and informative.

Whatever your link to the Bank, greater
familiarity with our activities should
broaden understanding of the Federal
Reserve and thereby enhance your rela
tionship with our institution. We further
hope that this report will set an agenda
of issues to be addressed by those with
whom the Federal Reserve Bank of
Atlanta deals-depository institutions,
the U.S.Treasury, our employees, and
the public at large.

Atlanta Fed Chairman JohnH.Weitnauer, Jr., and President Robert P. Fonastal

CHALLENGES TO ECONOMIC GROWTH
U.S. Economic Performance in
1985
American economic expansion slowed
dramatically last year compared with
the rapid pace experienced in 1983 and
1984. Gross national product (GNP],
the total output of goods and services
produced, expanded by about 2 112
percent in 1985;1984's annual average
growth rate exceeded 6 percent. Some
slowdown was to be expected, of course
During the early phases of recovery
from a recession the economy tends to
grow much faster than later in the
business cycle. In fact, if such slowing
did not occur, then inflation could once
again become a primary concern and
negate many of the benefits of faster
growth. Nonetheless, the degree and
duration of the slackening, which actually began in 1984 and continued intefi
mittently into 1985, was rather p r e
nounced Not until the second half of
1985 did GNP resume growth in the 3
percent range that seems to be our
nation's longrange potential. Even then,
many sectors remained sluggish.
With slower economic growth during
much of the first half of 1985, it was
understandable that the unemployment
rate did not dip as markedly as it had in
the previous year. For six months the
jobless rate remained at 7.3 percent,
dropping only to 6.9 percent by y e d s
end On the brighter side, inflation
proved even more moderate than had
been expected In 1985 consumer prices
increased by an average of 3.5 percent,
compared with a 4.2 percent increase
in 1984.
One restraint on 1985's overall GNP
expansion was rooted in the interne
tional sector. Foreign suppliers met a
substantial portion of the growth in
consumer purchases and business investment in equipment. Meanwhile,
American manufacturers and farmers
who had come to depend heavily on
exports were priced out of foreign m m
kets by the relatively high value of the
U.S. dollar. Domestic production colt
sequently languished; employment in

manufacturing actually declined for
six consecutive months in the first half
of the year, and growth in personal
income slowed despite a sustained expansion in the service sector. Against
the backdrop of a relatively accomme
dative monetary policy and ample sup
plies of credit, interest rates declined
markedly, but these factors could not
overcome the difficulties confronting a
significant portion of industry and a&
culture. At the same time that it damp
ened GNP growth, the strength of the
dollar helped check price increases. A
flood of less expensive foreign goods
reduced the costs paid by American
businesses and consumers for many
items. Lowmpriced imports also forced
many American producers to be extremely competitive in their pricing.

Several factors should contribute to
somewhat faster growth in 1986. The
fall in oil prices probably will dampen'
inflation and spur economic activity
generally. The decline in the U.S. dolI d s value on foreign exchange marketswhich began in early 1985,should lead
to a modest turnaround in the trade
situation as the year progresses. Rapid
money growth and the attendant decline
in credit costs, such as occurred in
1985, often are followed by an acceler
ation in activity. Some sources of urn+
certainty remain, such as capital investment by business and the effects of
fiscal policy. Nonetheless, when sbmgths
and weaknesses are considered together,*
there appears to be sufficient momen
tum to sustain the expansion at a pace
close to our potential or even to experkence slightly faster growth for a while.

Outlook for 1986

Sources of Strength. Lower oil pricesshould boost economic activity generally,
both in the United States and internationally, since energy is such an impor
tant input With reduced energy costs,
many businesses' profitability should
improve, and net farm income also may
rise since much- fertilizer is derivedfrom petroleum. Consumers, too, will
have more to spend on discretionary
items.
Along with lower energy costs, several factors should make consumer

Moderate improvement is likely in
1986. For the year as a whole GNP may
expand somewhat more than 3 percent.

Unemployment should decline further,
but dramatic progress on this front does
not seem probable. Given the record
proportion of Americans in the work
force, even a sustained drop into the 6
percent range would constitute respectable progress. Fortunately, inflation
should remain subdued this year.

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National Product Growth

?
I
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spending a s o m e of modest growth in
1986 despite the high level of debt
incurred last year. Steadily advancing
employment augurs well for household
budgets. Stock and bond market rallies
also have significantly enhanced the net
worth position of consumers, either directly or through pension funds and the
like, and this rise in consumer wealth
eventuallyshould work to inmase s p e d

The international sector also should
improve. By the end of last year the
exchange rate of the U.S. dollar had
fallen 25 percent, on a tradeweighted
basis against the currencies of 10 other
a advanced economies, from its February
1985 peak. Since changes in exchange
rates can take from six months to a year
to affect foreign trade patterns, some
upturn in exports should begin to a p
pear in the coming months. This development would be especially welcome
4 to the many manufacturers and farmers
whose foreign markets have atrophied
in concert with the rising exchange
value
of the dollar. At the same time
&
that U.S. exports grow, demand for
imports should start to taper as the
dollds decline makes them costlier to
American consumers. As a result, h a d
pressed domestic producers should experience some revival of orders and
sales.
e
The rapid growth in money and credit
during 1985 may have a positive impact
on several sectors of the economy,
8 particularly consumer purchases of
housing and durable goods. Mortgage
interest rates fell considerably toward
year
end, reaching their lowest level
t
since 1979. In addition to assisting
home buyers, the lower credit costs
associated with this monetary expane sion have made it less expensive for
builders to undertake new projects.
Although much of the housing demand
that had been deferred in the early
1980s already has been met, in a shmgtb
ened economy many consumers prob
ably will want to “trade up.” By the end
4 of 1985 residential building was showing signs of renewed strength. The
pent-up demand for durable goods such

40 50

Value of U. S. Dollar
Tradeweighted Against 10 Countries.

Percent Change F’mm December 1971

*l%&hm, unlted Kingdom. clo.da. G3rmany.
Switzerland Netbalsnds. France, Italy,
Japan. Sweden

as cars likewise largely has been met,
but the average age of automobiles
owned by Americans remains much
higher than was usual during most of
the post-World War I1 period In an
environment of noninflationary growth
and lower interest rates, Americans
conceivably could begin replacing their
automobiles more frequently, as they
once did
Aside from lessening production costs,
lower interest rates also reduce the cost
structure of business in general, not
only now but also in the future. Many
corporations, for example, have been
calling in high-rate bonds issued in the
early 1980s and refinancing at significantly reduced rates. Additionally, stable short-term credit costs and the d e
preciation of the dollar last year should
help ease some of the strains on the
nation’s fmancial institutions, especially
those that have heavy concentrations
of loans to less developed countries
(LDCs). Because such nations are now
better able to service their debt burdens,
institutions whose loan portfolios are
heavily weighted by LDC debt should
see their financial situation improve as
well.

Areas of Uncertainty. Despite these
favorable factors, some imbalances exist that may retard growth for a while.
The outlook for capital spending by
business is clouded Surveys indicate a

scaling back of business capital im
vestment plans for 1986. The favorable
tax treatment adopted in 1981 contrib
uted to substantial overbuildhg of strue
tures, particularly office buildings, in
many areas of the country. High vacancy rates and rental discounts seem
likely to dampen enthusiasm for initiating new projects despite today’s much
lower interest rates. Uncertainty about
future modifications in the tax treatment of investment, including the pos
sibility that certain changes could be
retroactive, also may be discouraging
investment plans. In addition, with
excess productive capacity of around
20 percent-a higher level than earlier
in the expansion-many businesses are
unwilling to expand their investment in
plants and equipment.
The public sector is difficult to class
ify as either a s o m e of strength or
weakness in 1986. Although the effects
of the GrammRudman budget act are
uncertain at this point, this legislation
holds the promise of diminishing the
large federal budget deficits. Since this
reduction probably will take the form
of lower federal spending, some of the
stimulus that helped propel economic
growth during the past few years also
should 1HOWWIX,minimal ~ h h k age in the deficit is likely in the 1986
fiscal year. Whafs more, because of
the nature of defense contracts and
commitments, the momentum from the

J’
I

increased defense spending-much of
which was implemented only in 1985is likely to be sustained through 1986.
Thus, government spending, particw
lady for defense, should continue to
add vigor to manufacturing in 1986.
Nonetheless, the legislation indicates
that greater reductions should begin by
the fall and continue through the rest of
the decade.
On the other hand, diminished federal
borrowing in financial markets would
offset to some degree the adverse effect
of reduced fiscal stimulus occasioned
by GrammRudman With less “crow&
ing out” by the public sector, the pres
sure on interest rates and financial
markets, which is created by expectations that deficits will continue indefb
nitely, may subside. This development
would establish a better climate for
businesses and also foster more COD
sumer spending. Should substantial
reductions in the deficit appear to be
developing, the dollar could decline in
a noninflationary manner because re
sources would be freed up by a smaller
government sector.
Prices are a third uncertainty. Some
pickup in inflation is possible in 1986.
The significant drop in the dollar‘s
exchange rate means that the price of
imports, on which Americans have
come to depend so heavily, is likely to
rise somewhat. This is not cause for
undue concern, though, because prices
probably will not rise noticeably until
later in the year. Even then, such increases could be moderate in view of
the nation’s excess capacity and the
likelihood that many foreign producers
will act to maintain their participation
in U.S. markets. Moreover, oil prices
recently have fallen substantially. Lower
energy costs should work to offset the
effects of potentidy higher import prices.

Outlook for the Southeast
The nation’s performance largely
determines the outlook for the Sixth
Federal Reserve District,which includes
Alabama, Florida, Georgia and parts of
Louisiana, Mississippi, and Tennessee.

and technological for some time. Thus

lowever, some special regional factors
are at work. Defense spending should
be a plus for many southeastern areas.
The anticipated effect of lower credit
costs on sales of durable goods should
prove a boon to the region’s increasing
number of vehicle assembly plants,
such as those in Tennessee and Georgia,
and perhaps to Alabama’s important
tire industry. Another favorable factor
in this region is population growth.
Many parts of the Southeast are likely
to continue to attract people from other
sections of the United States, and this
influx of new residents will fuel demand
for housing as well as the ongoing
expansion of services, ranging from
movie theaters, restaurants, and department stores to doctors‘, dentists‘, and
lawyers‘ offices.
Traditional Manufacturins The do&
I d s decline should help some of the
region’s traditional economic activities
such as agriculture, textiles, apparel,
and lumber, which have been hard hit
by import competition. However, the
current plight of certain distressed see
tors, for example, lumber and farming,
developed over several years and is
unlikely to be reversed completely in
the near term Employment in the textile
industry has been declining for well
over a decade, even during the 1970s
when the U. S. dollar was widely regad
ed as “undervalued” on foreign currency
markets. To compete in todafs interna
tional markets, the textile industry has
been growing more capital intensive

textile mills should not be expected to
resume their role as major employers,
even though their corporate balance
sheets may begin to look healthier. In
fact, the movement of workers from
low-wage, import-sensitive industries’
into other sectors with more growth
potential and greater opportunities for
higher wages should prove beneficial,
in the long run.
Energy. Overall prospects for the oil
and natural gas industries, which are
concentrated in Louisiana and southern‘
Mississippi, are more clouded. WorlcL
wide demand has been slack relative to
supplies, and the decline in oil prices,
has been substantial, rendering the n e w
term outlook for drill@ and exploration
bleak. Still, lower prices could generate
significant growth in demand for oil,’
natural gas, and petroleum by-products
such as chemicals Modest improvement
for refiners and makers of petroleum-,
based products may therefore be on the
horizon
Construction. Another regionally
important industry that seems destined’
to undergo some retrenchment is nonresidential construction Despite the
large number of people and companiesa
that have been moving to the Southeast,
many cities have more office space
than current demand warrants. Some
have a glut of hotel rooms as well. This
overbuilding is reflected in high vacancy
rates and a proliferation of rental dia
counts. The number of new department,
stores and shopping centers planned
for certain southeastern cities may also
be outstripping the potential for growth
in consumer spending over the next4
few years Accordingly, some slowdown
seems inevitableeven desirable-to
allow existing supplies to be absorbed.
The RuraYUrban Disparity. The
southeastern economy’s sources of
strength-defense spending, inventory
rebuilding, population growth, and the*
dollds decline- suggest that Florida
and Georgia will enjoy the brightest
prospects in 1986. Louisiana, with its,
less diversified economy, will continue
to struggle. Tennessee, Alabama, and
aF

probably Mississippi are likely to fall
in the middle. Generally, cities should
fare better than rural areas since most
population growth is taking place in
urban and suburban areas. Rural areas
not only depend more heavily on
culture but also face the challenge of
fin*
new sources of jobs for many
pannanently displaces
apparel
and other manufacturing workers. The
outlook for Atlanta and Nashville is
especially promising.

' Issues Confronting

Policymakers and the Public

The "moderate" expansion envisioned
for the nation and region in 1986 is
respectable considering that trends in
productivity and resource gains limit
* longrun U.S. growth to about 3 per
cent Moreover, this year should usher
in more balanced performance than
was experienced last year. Americans
face important issues, however, that
make this outlook less certain and pose
special dilemmas for economic policy
makers.
Financial System Conditions. One
such issue pertains to America's f i n e
1 cial system. That system is fundamea
tally strong and resilient but certain
lingering problems remain a matter of
concern. Debt owed by LDCs continues
e
to burden many U.S. financial instituMons. Substantial declines in interest
rates and in the fore@exchange value
B of the U.S. dollar enable borrower
countries and their lending institutions
to restructure and service this debt
more easily, since much of it is dollar
*' ted. However, lower oil prices
will probably outweigh the effects of
lower interest rates on o&exporting
s LDCs that are heavily indebted and on
their U.S. creditors. In addition, the
dollds depreciation will make some
LDCs' products more expensive in this
9
country and could reduce the export
earnings and growth of developing naMons. America's colleagues among the
industrial nations can help take up the
potential slack in LDCs' export markets.
Recent signs of stronger growth in
a

Europe give reason to expect that the
fundamentals are in place for such a
transition, yet these countries also must
exhiMtthepolltical~toassume
a larger share of LDC exports If, instead,
other advanced economies do not sus
tain and improve their economic e x p e
sions or if they seek to protect their
own favorite industries, the likelihood
of continued progress on the part of
LDCs would be diminished.
Such stalled progress would exacer
bate other problems that confront the
u.s financial system, especially in view
of the high degree of leverage that
characterizes all the major segments of
the U.S. economy-consumers, govem
men@ and businesses. Public sector
debt already has been described. In&
viduals borrowed heavily in 1986 to
finance their spending. Although savings
rates are not as low as once thought
they do not compare favorably with
previous U.S. rates or with rates in
many other advanced countries. In re
cent years, the corporate sector's lever
age has skyrocketed with the surge of
takeovers and mergers. Many of these
deals have been financed by debt issued
in the form of low-grade investment
bonds, and the already troubled thrift
industry has been prominent among
the investors in such "junk bonds."
Beyond the problems posed by LDC
debt and leveraged buyouts, many financial institutions are encumbered by
farm and energy loans In addition,

12 r-

because of the existing surfeit of offices,

condominiums, and apartments across
the country, real estate lending also
could pose problems for certain types
of institutions, particularly savings and
loan associations. A sudden economic
disruption could have detrimental effects on the stability of our financial
system. Thus, policymakers must be
extremely watchful of developments in
LDCs, in the farm, energy, and real
estate sectors, and with respect to the
continuing use of leveraged buyouts.
Weaknesses in the banking community were manifested last year by 120
bank failures-the largest number since
the establishment of federal deposit
insurance. This number could well be
matched, if not exceeded, in 1988. The
vast majority of these failed banks
were and will probably continue to be
small community institutions. While
such failures do not significantly influence the broad financial markets, they
can have an adverse impact on local
areas. Containing the pressures that
can arise when banks fail is a primary
objective of public policy. For these
reasons, the Federal Reserve, in its role
as the nation's central bank, acts to
ensure that the marketplace remains
orderly and that institutional adjustments occur within a stable financial
system.
During 1985 the Federal Reserve
System undertook a major effort to
review its supervisory framework and

Personal Savings Rate

3-Month Moving Average

s a o l l . n r ~ h d h W h p e C s n t

4 -

the resources devoted to those respom
sibilities. Current requirements of the
marketplace highlighted the need for
more concentrated supervisory efforts,
procedures, and guidelines. Although
numerous policy and procedural changes
were set in place last year, the new p m
gram consists essentially of five reforms
(1)strengthening existing standards,
(2) identifying problems earlier, (3) cor
recting existing weaknesses, (4) corn
municating examination findings more
clearly, and (5)increasing cooperation
with state supervisory agencies.
strengthening existing standards will
take several forms. New minimum capital requirements have been adopted
and further refinements were proposed
toward year end Improved techniques
are being developed for measuring bank
holding company cash flow and liquidity for incorporation into the inspection
process, and formal guidelines relating
to acceptable loan concentration levels
and loan loss provisions were added to
the examination function. Finally, the
Board of Governors issued guidelines
regarding dividend policies for organizations experiencing earnings problems.
To detect problems sooner, large banks
and bank holding companies under the
Board‘s supervision will be examined
more frequently. A policy of expanded
financial statement reporting and increased off-premise surveillance also
was put into place. The System is
developing strategies to improve supervisory responses to banking emer
gencies, such as those that occurred in
Ohio and Maryland during 1985. Com
tinued efforts are underway to enhance
the training and skills of examiners,
who remain the best early warning
system for identifying and correcting
problem situations.
Measures to increase awareness and
accountability of bank and bank holding
company directors should facilitate the
correction of problems. Directors of
institutions found to have problems
will be required to take a more active
role in preparing and enforcing reme
dial actions. To underscore the seriouw

ness of examinations, senior Federal
Reserve officials will be more actively
involved in presenting examination re
sults to the boards of large or troubled
institutions. To assure effective communication and to emphasize director$
responsibilities to take corrective action,
the Fed will routinely provide reports
summarizing examination findings to
individual W o r n of institutions found
to have problems Currently, the System
is forging a stronger link between examinations and applications processing:
for example, the Federal Reserve will
ensure that the most current condition
is confirmed, through omsite evaluations where necessary, before approving significant applications.
Finally, programs now are being
developed to improve the Fed’s inter
action with and reliance on state agem
cies so as to better utiliie resources and
eliminate duplication of effort among
supervisory bodies. This effort by the
Federal Reserve to fortify the banking
industry and minimize the effect of
disruptions represents a major initiative. The Atlanta Fed has strongly s u p
ported its development
Protectionism. Another problem,
and one far less subject to Federal
Reserve policy influence, is protectiom
ism. Some shift away from protectionism
is likely since President Reagan vetoed
a major protectionist bill and the d o h %
substantial depreciation last year should
ease some strains on affected industries
Significant progress toward reducing
federal deficits also would allow the
dollds further decline without straining
domestic capacity or rekindling infla
tion. Nonetheless, continuing political
pressures to enact protectionist policies
remain a matter of grave concern.
The economic arguments against pro
tectionism are well known. Whether in
the form of quotas and tariffs or the
seemingly more benign form of subsidies, these measures bring advantages
to a small group of employees and
employers at the expense of the vast
majority of consumers, who must pay
more for the goods they purchase.
Usually any benefits are short-lived

and merely postpone inevitable adjustments in affected firms and industries.
Protectionist measures by one country
are almost always followed by retalia
tory actions on the part of other nations,
and the net result is a decline in world
trade and economic activitv. In effect
protectionism chokes off foreign m i
kets that have the potential to become
major customers for goods in which the
United States has a comparative advan
tage.
Beyond these familiar economic argw
ments are certain social or moral objeo
tions to those sentiments that give rise
to support for protectionist measures.
This apparent political groundswell
bespeaks a shortsighted approach to
public policy, a lack of vision that can
erode the social values underpinning
America’s laws and policies. Efforts to
protect domestic industry against for
eign competition transfer to future gem
erations the burden of making needed
adjustments. U. S. policymakers, businesses, and citizens should be taking
necessary steps to get the natioxis ecom
omy “into shape,” for these actions
would leave today’s youth the legacy of
a healthier economy- one in which
more workers earned greater real incomes, one based on a mix of higher
valueadded economic activities suited
to the world’s leading economy. In
contrast, adoption of protectionist POL
cies would allow the United States to
remain slack for a while longer, shifting
responsibility for the inevitable transition onto the next generation.
Social Ethics Unfortunately, the
social shortsightedness underlying sup
port for protectionism extends beyond
a single issue or ideology and thus
poses a considerable threat to the United
States as a whole. The term, “megem
eration,” often used to refer to those
who came of age in the 1970s, emphasizes how the attitudes of that group
differ from the more socially concerned 4
values of their 1960s‘ counterparts. A
number of programs designed to imple
ment the earlier social goals proved to
be far costlier than originally anticipated or even misguided, and so natw

US. ForeignRade

'bade of Goods and Services

rally the social pendulum has reversed.
However, the United States now seems
to be drifting too far in the other dire0
tion. Evidence suggests excessive concern with present well-being and an
abming disregard for how certain PO€ides might affect other segments of
society and future generations. Such
attitudes, which characterize all too
many individuals, are apparent in the
business community as well. Recent
years have seen many instances of
fraudulent and otherwise illegal or implicitly unefhical behavior in the private
sector. This phenomenon has been evident in a variety of professions, ransing
fFom defense contractors and stockb m b to government secuntm dealers,
accountants, and bankera The willing
ntws of these people to compromise the
most fmdamental principles of honesty
and even to break the law for the sake
of immediate gain jeopardizes the trust
on which our society is based
The importance of trust in the fincial industry is widely recognized. D i s
rupted trust shakes depositors' confidence and thus can quickly damage
even sound institutions. Trust is impor
tant in all economic dealings, though,
for when it suffers, commercial rela
tions must be rebuilt. Usually this re
building process leads to a maze of red
tape, paperwork, bureaucracy, and in
some cases regulation The more exten
sive the maze becomes, the more it
detracts from efficiency and flexibility,
eventually hampering economic growth
and prosperity. Mounting incidents of
dishonesty also sully the reputation of
businessingeneralIndivid~inturn,
are tempted to sacrifice moral standards
for the sake of short-term personal
gain.
The shortsightedness and self-centeredness that characterize the e m
nomic behavior of many individuals
take a number of forms. Most American
consumers have been enjoying a high
standard of living, apparently ignoring
the heavy toll their spending spree
levies on certain groups. These segments particularly include farmers and
workers in industries that are especially

export-dependent or import-sensitive.
We also have grown indifferent to the
consequences of our actions on future
generations. Seemingly, many Americans do not understand that both our
spending binge of recent years and the
current problems in manufacturing and
farming are rooted in the nation's relua
tance to save more personally and to
bring our spiralling public debt under
control. Those who do understand this
relationship appear unwilling to alter
their patterns of gratification until
events beyond their control force a
change.
Although the effects of large strua
tural federal budget deficits are complex, some basic impacts are readily
comprehensible. In addition to their
link to the current hardships being felt
by farmers, manufacturers, and some
financial institutions, deficits transfer
an onerous responsibility to future
generations. The huge volume of inter
nal and external debt that we as a
nation are accumulating eventually
must be paid back. Most likely our
children will have to shoulder this bur
den just at the time when they reach
their peak spending years. To service
and possibly retire this debt, they will
have to save more, in many cases for
going such major purchases as homes,
education, and the like. Thus, our re
cent bout of consumption will come at
their heavy expense.
The United States has gone deeply
into debt in the past, especially in times
of national military emergencies, there
by forcing future generations to fiance

current needs. Most of that financing,
however, was drawn from domestic
sources. By contrast, today's huge budget deficits are being funded to a significant extent by foreigners. In 1984 the
equivalent of onequarter of our net
domestic needs for investment and deficit financing were met by funds from
other countries. Therefore, servicing
the 19809' public debt will redistribute
income not simply from one group of
Americans to another but also from the
United States to investors from abroad
It is easy to blame others for our
nation's problems. Many people a W
bute the weakness of American textile,
apparel, and steel industries to the low
wage levels axid government subsidies
that prevail in many LDCs. Others
charge flagging U.S. export growth to
nontariff barriers erected by Japan and
Europe. Some even place the responsibility with Congress. It is true that our
legislators failed for many years to
address the deficit issue; however, co*
gressional delegates are elected and
highly sensitive to their constituents'
demands. If we as citizens, members of
various trade and professional organizations, or opinion leaders in our own
right, had opposed these deficits sooner
and more forcefully, Congress likely
would have taken action earlier than
last December, when it enacted the
Gramm-Rudmanlaw.
This legislation is an important step
in the right direction, but it is only the
beginning. As of yet, it merely holds
the promise of deficit reduction; only
minimal spending cutbacks are probable

in the current fiscal year. Meanwhile,
the burden of U.S debt continues to
soar, as does the eventual pain of transition to a less leveraged economy. The
real responsibility for tackling these i
s
sues lies with each of us. We must make
our legislators aware that widespread
popular support exists for deficit redue
tion.
Additionally, Americans must gener
ate more personal savings. In this way
we can ensure the availability of ade
quate funds for future research on p d
ucts and production techniques, for
construction of more modern factories,
and for replacing outmoded equipment
with machines and methods that will
enable the United States to compete
more effectively in world markets. We
also must begin to ask less of govern
ment and to rely more on ourselves and
on private institutions to solve many of
today’s complex problems. Each of us,
as individuals and as representatives of
organizations, must be prepared to sa0
rifice some of our dependence on the
public sector-for
subsidies, protee

tion, financial assistance, and possibly
even medical and employment insur
ance. Instead, we must take greater
responsibslity for our own retirement
and health and for the efficiency of
U.S. industries and companies as they
face an increasingly global marketplace. This shift in social values is not
likely to be painless, for it will require
that we live less for the pleasure of the
present Ultimately, however, it should
result in higher living standards for us
and our children, fewer disruptions
and dislocations over time, and a more
prosperous and competitive nation, If
we fail to take these personal measures,
Congress surely will find it more diffk
cult to cut federal spending and to
reduce future budget deficits.

Conclusion
Resolving all these challenges will be
a formidable task but one assisted by an
economic context that is generally
favorable. The expansion is likely to be
sustained in 1986, and some of the

nation’s troubled sectors seem ready to
rally. The Federal Reserve will continue
to seek policy approaches that promote 4
economic growth, price stability, and
the soundness of the U.S.and interne
tional financial systems. With the Fed,
fostering such an environment, indh
viduals and businesses should find they
can take a longer view than is possible
in a more volatile setting, where uncer I
tainty creates pressure to maximize
short-run gains. Yet the Fed and other
policymakers cannot achieve these
goals on their own. American busineases must pursue farsighted measures
to deal with the complexities of global
economic integration and other issuesr
that have been reviewed here. The
support of enlightened citizens also
will be necessary for the nation to‘
surmount its present problems. If we
all do what we can in our personal and
professional lives to promote more judk
cious economic thinking and c o r n c
sponding public policies, we can help
launch the U.S. economy on a path of
enduring and healthy growth.
V

Highlights of 1985

ReturndRejects Processing. New
computer equipment was installed at
Core Values
each branch in 1985 to facilitate returnitem
and reject-item processing. This
The FReserve ~ a n kof ~ t l a n t a
new
equipment, which provides the
articulated a set of corporate goals that
reflect the commitments and objectives enhanced capabilities needed to expand
service levels in these areas, will conof its staff. Three values-integrity,
tribute
significantly to the efficiency of
quality service, and cost effectivenesscheck
operations.
constitute the heart of this philosophy.
Integrity means that the Bank will be
fair, honest, and impartial and will
LargeDollar Return Notification.
conduct its business with high standards
Depository institutions’ practice of
to maintain strong public confidence.
delaying withdrawals from depositors‘
Quality service indicates that all Bank
accounts for extended periods received
staff are to provide exemplary service, significant public and congressional
with emphasis on reliability and re
exposure last year. Responding to the
sponsiveness to customers, constituenta
banking community‘s concerns over
and each other. Cost effectiveness sug
potential risk of loss if “hold” periods
gests that resources should be managed
were reduced the Board of Governors
prudently to maintain maximum pro
adopted an amendment to Regulation J
ductivity and efficiency.
to improve the system of notification
for nonpayment of checks processed
through the Federal Reserve in amounts
of $2,500 or more. At the same time,
* Payments Services
the Federal Reserve began offering a
notification service to help payor instiVolume and Prices. The volume of
tutions meet the new requirements,
various payments services provided by
which became effective October 1,
4the Atlanta Fed continued to grow in
1985. In providing this service, Reserve
1985. The Sixth District processed 2.3
Banks are assuming liability for makbillion checks, far more than any other
ing the proper notification within p r e
Reserve Bank and about 8 percent more
* than the Atlanta Fed processed in 1984. scribed time limits. This amendment
should improve the timeliness and reliIn the electronic payments area, average
ability of notification and thereby re
daily wire transfer originations grew 4
duce
the financial risk to the institution
,percent, and total commercial auto
of first deposit. Eventually, this change
mated clearinghouse (ACH] volume in
should assist depository institutions in
creased about 27 percent from 1984 to
reducing the length of holds sometimes
1985. In securities services, average
placed on deposited funds.
monthly definitive safekeeping receipts
increased almost 4 percent, and total
noncash items collected grew 13 per
cent. Owing to continued growth in the
Payments System Risk On May 17,
volume of payments services as well as
1985, the Board of Governors issued a
ongoing strong productivity and cost
policy statement on the control and
efficiency, the District will be able to
reduction of risks to the Federal Reserve
* maintain most 1986 prices at 1985 levels and to depository institutions particiand can lower some prices. However,
pating in largedollar wire transfer sya
selected price increases will be imple
tems. The policy, scheduled to become
mented for nonautomated ACH services.
effective on March 27, 1986, calls on
Sixth District-controlled prices are the
depository institutions to reduce the
lowest in the Federal Reserve System.
credit risks associated with their partic-

ipation in these systems. Furthermore,
the policy defines the role that the
Federal Reserve and other financial
institution supervisors will play in
and counseling
monitoring, -xe
depository institutions on these matters.
The policy encourages each depository
institution that incurs daylight over
drafts to adopt voluntarily a “cros*
system sender net debit cap.” The cap
represents the maximum net debit that
a depository institution may incur at
any one time on all of the largedollar
wire transfer systems (Fedwire and
each private networkJ in which it partie
ipates. The policy sets limits based on
creditworthiness, operational controls,
and credit policies and procedures. To
acquaint depository institutions with
this new policy, the Sixth District held
18 seminars attended by representatives
of over 300 depository institutions
throughout the Southeast.
Product Development. One of the
Sixth District‘s primary goals is to be a
leader in providing payments services
in all areas-checks, electronic payments, and securities. As a result,
emphasis is placed on developing high
quality, efficient, and technologically
advanced services to meet our customers‘ needs. The Atlanta branch is one of
three Federal Reserve offices participating in a check truncation pilot p r o
gram. Phase I of the program, involving
the capture, storage, and retrieval of
items drawn on institutions within the
area of the pilot program, was imple
mented in 1985.
Development, conversion, and expansion of our electronic payments and
information delivery network, Fedwire,
to depository institution$ microcomputer work stations continued in 1985.
Services currently or soon to be available through Fedwire include transfer
of funds and securities, electronic origination and receipt of ACH entries,
check-return item notification, account
infomation, Treasury-tender subscrip
tions, cash-order requests, and financial

rate information. The District also
implemented eight securities services
enhancements in 1985, including magnetic tape and microfiche listings of
holdings, notification of matured bonds,
separate bond-&transit accounts, im
terest and principal statements, and
subaccounts.

Supervision and Regulation
Mergers and Acquisitions. In 1985
nearly 350 applications from institutions seeking changes in structure or
operation were submitted to the Atlanta
Fed. The Sixth District was the only
one in the System to experience an
increase in the volume of these applica
tions during 1985. The Atlanta Fed
maintained its good record of processing
applications despite the higher volume
of applications and abbreviated p m
cessing time.
State Member Banks. Twenty-one
statechartered banks in the Sixth D i s
trict were admitted to membership in
the Federal Reserve System in 1985,
bringing the total number of state mem
ber banks to 113. This record growth in
our constituency is attributable in part
to continued expansion of the southeastern banking industry, especially in
Florida, and the conversion to commer
cial banks of savings and loan associations seeking FDIC insurance. Also,
bank subsidiaries of some bank holding
companies seem to prefer being regu-

lated by the same authority as their
parent company.

Monetary Policy
Directom We want to thank our dime
tors for their valuable counsel during
the year, with a special word of appreciation to Dan B. Andrews,President of
the First National Bank in Dickson,
Tennessee. Mr. A n d r i m s stepped down
from our head office board at y e d s end
after completing six years on that body
and three previously with the Nashville
board. We want to welcome Virgil H.
Moore, Jr., Chairman and Chief Executive Officer of First Farmers and Mer
chants National Bank in Columbia,
Tennessee, who recently joined our
head office board.
Discount Rate. The discount rate
was changed only once in 1985. This
change occurred on May 20, when the
rate was lowered from 8 to 7 1/2 percent,
the lowest point since August 1978.
Federal Advisory Council. We wish
to express our gratitude to Philip F.
Searle, Chairman of Sun Banks, Inc.,
who completed his term as Sixth D k
trict representative to the Federal Advisory Council. We are pleased that Ben
nett A. Brown, Chairman and Chief
Executive Officer of the Citizens and
Southern Georgia Corporation, has a s
sumed this responsibility in 1986.

Advisory Councils. The Federal Re
serve Bank of Atlanta, like other Re
serve Banks, formed an advisory c o w
cil consisting of 15 representatives from'
agriculture, small business, and labor.
In its first two meetings the Council
already has given the Bank's directors,
and staff concerned with monetary policy greater insight into the special con
cerns of small business, agriculture,
and labor and provided an additional'
sounding board on regional and national
economic issues.
Distinguished Speakers and Special'
Functions. The Bank continued to attract distinguished private and public
figures for dialogues with our directors,
and business and community leaders
on important public policy issues Speakers appearing in this series of monthly
programs included w&hown govern&
ment figures, bankers, judges, econcl
mists academics, and business leaders.
The Bank also sponsored luncheons,
honoring leaders from a variety of fields
ranging from finance to diplomacy.
V

Building Construction Program

The Jacksonville Branch building
project was running several months
behind schedule at the beginning 04
1985. The contractor has realigned the
project management and has scheduled
completion of the building for the middle of 1986.
1

JOHN H. WEITNAUER
CHAIRMAN

JR.

Chairman and Chief Executive Officer
W-Y

Atlanta caogta

BRADLEY CURREY, JR.
DEPUTY CHAIRMAN
PmddeQt

Rock-Tm Company
Norcmss, Georgia

DAN B. ANDREWS
h8ident
First N a t l o d Bank
Mckson, Tennessee

HAROLD B. BLACH, JR.

Seated are Currey. l e R d Wehuer. Standin& fmm left. are SI@, Robhwn. Walker, Thompson,
Blach, Coucdw Aadrewa and P e d d Advbny Council Member Seuh

1986 direct-

plddellt
BWfa Inc.

BfrmineharnAlak

JANE C. COUSINS
President and Chief Executive Officer
M d Lynch RealtylCoueins
MkmL Florida

E B. ROBINSON, JR.
ChairmpnandChiefBurcutivaofficer

LkpodtGuarantyNationalBPnk
J a O n , Midnsippi

BERNARD F. SLIGER
PmddeQt
morMp state univereity

TdldlM=+Florida

HORATIO C. THOMPSON
Preddent
Hmtio Thompson Inv6stment Inc
Baton Rouge, LouMnna

MARY W. WALKER
Preddent
The National Banlr of Walton County
Monroe,Geogla

New Director for 1988

rederal Advisory Council, 1985

VIRGIL H. MOORE,JR.

PHILIP F. SEARLE

ChaLman and chief Executive officer
Fint Farmem and Merchauta National Bank
Columbia, Texmeame

Chairman
Sun Banks, Inc
mlanda, Florlda

Federal Advisory Council, 1986
BENNETT A. BROWN
Chairman and Chief Executive Officer
Citizen8 and southern Georgia Corporation
The Citizens and Southem National Bank
Atlanta,Georgia

BRANCH

U I K E G ' l U K S , 1 9 8 5

BIRMINGHAM
MARTHA McINNIS
CHAIRMAN
president

Inc
Montgomery, Alabama

En*&

G. MACK DOVE
preddent

AAA cooper Transportationcompany
Dothan, Alabama

GRADY GILLAM
chairmaa
AmsouthBank, N.A
Gaddent Alabama

SAMUEL RICHARDSON HILL, JR.

Preddent
UnfvenUyofAlnbnmahBfrmineham
Birmineham,Alabama

WILLARD L HURLEY
ch.lnnut.ndChiefEurcutive miter
PfntAlabamr-InC
Bfnnineham,Alabama

CHARLES LEE PEERY
Chatrman
T
h
e
m NationrlBankof Florence
Florsnc& Alabama

MARGARET E. M. TOLBERT
A m o d a t e p l w o r t f a r ~ a n d ~
Dtrector, Carver Remarch Foundnth
Twkegee IMtltllte
Tudcegee, Alabama

A. G. TRAMMELL

hddent
AlabamaLAborcounon,AFLc10
Blrmineham,Alabama

New Directom For 1888
ROY D. TERRY
preddent and chief Executive officer
Terry Manufactwin# Company, Inc.

Roanoke, Alabama

JUDITH THOMPSON

Preddent and ChiefExecutive Officer
'raompron Tractor company, Inc
Bhin$~un,Alabama

MILTON WENDLAND
owner
Autaug. Farming Company

Autnugavlh, Alabama

JACKSONVILLE

E. WILLIAM NASH,
CHAIRMAN

Prasident SoutbCentml Operatiom
+ The
Prudential Insuranar company of America
Jacksondka, Florida

GEORGE C. BOONE, JR

Pmsident and Chief Executive Officer
Security F h t Federal Saving8 and Loan
Asnociation
Daytona Beach, Florida
d

BUELL G. DUNCAN,

Chairman and Chief Executive Officer
SunBank, N.A.
Orlando, Florida

E. F. KEEN, JR
Vice Chairman
a NCNB Bancorporation,

Inc.

Bradenton, Florida

ANDREW A. ROBINSON
Dean
Cob@ of Education and Human Senicm
U n i d t y of North Florida
lacbnville, Florida

JO ANN DOKE SMITH
C*oWnm
Smith Brothan
Micanopy, Florida

JOHN D. UIBLE
Chainnan and Chief Executive Officer
Florida National Bpnkr of Florida,Inc.
Jacbonville,Florlda

JOEL R WELLS, JR

pladdent and Chief Executive Officer
sunBankr,Inc

Orlando, Florida

New Directore for 1886
t.

ROBERT R DEISON
Chlkman
Andrew Jackson State Savhq~sand Loan
Asnociation
Tallah~aea,Florida

GEORGE W. GIBBS, I11

Pmddent and Chief Exeeutiva Officer
Atlantic Dry Dock Corporation
Fort George Island, Florida

MIAMI

i
EUGENE E. COHEN
CHAIRMAN
Chief Fiaandal OffiCerandTraasurer
HdHughe~MedicalIn~titute

Coconut Grove, Florida

ROBERT D. APELGREN
praeidant

ApeIgren CorporatiOn
Pahokee, Florida

SUE McCOURT COBB

Attorney

Greenbe& "murk?, Adcew, Hoffman, Upoff,
Rosea and Quentel, P.A.
Miami# Florida

JAMES P. HERMES
President and Chief Executive Officer
BankoftheIdadg

sanibel Florida
D. S. HUDSON, JR.
Chafnnan

Fimt National Bank and 'mu3t Company of
Stuart
Stuart Florida

ROBERT L KESTER
vice ChaiDman
Barnett Bank of South Florida, N.A.
Pompano Reach, Florida

ROBERT D. RAPAPORT
chairman
Royal Pahn SaAeeodation
Principal, Tha Rapaport Companiw
PaLn Reach, Florida

ROBERT M. TAYLOR
chafnnan and Chief Executive officer
The Marin- Group, Inc
FortMyem, Florida

New Director for lsss
WILLIAM H. LOSNER
President and Chief Executive Officer
The First National Bank of Homestead
Homestead, Florida

,'+

NASHVILLE
CONDON S. BUSH
CHAIRMAN
President

' Bush Brothers& Company
Dandridge, Tennessee

WILLA. HILDRETH

'President and Chief Executive Officer

First National Bank of Loudon County
Lenoir City, Tennessee

SAMUEL H. HOWARD

senior Vice President of Public Affairs
Hospital Corporation of America
Nashville, Tennessee
b

ROBERT W. JONES

Nashville Branch directonr Seated, left to right, SbeU Wllllama B d and NeeL Standine. Howard. H

Jonea

Chairman and President
First National Bank
McMinnville, Tennessee

C. WARREN NEEL

D m
College of Business Administration
The University of Tennessee
Knoxville, Tennessee

,OWEN G. SHELL, JR.
President and Chief Executive Officer

First American National Bank of Nashville
Nashville, Tennessee

'PATSY R WILLIAMS
b

Partner
Rhyne Lumber Company
Newport, Tennessee

New Directors for 1986

%GENECHEATHAM
President
Advanced Integrated Technology, Inc.
Nashville, Tennessee
t

SHIRLEY A. ZEITLIN
President
Shirley Zeitlin 8 Company Realtors
$Nashville, Tennessee

m and

- -

N R W nRT.EANS
LESLIE B. LAMPTON
CHAIRMAN
preesdent
mon, Inc
Jackson, M W p p i

JAMES G. BOYER
chairman, prsddent,
andChiafExecuthreOfRcer
Gulf National Bank at Lake Charlee
Lake Charles, Loutsiana

PHILIP IC LIVINGSTON

Vice Chairman. President, and Chief Executive *
offbr
Citizene National Bank
Hammod Louisiana

SHARON A. PERLIS
Attorney
MetsiriR Louisiana

TOM EL SCOTT,

JR.

Fbddent and Chief Executive Officer
Unifht Bank for Savings, F.A.
Jackson, Mississfppi

*
c

ROOSEVELT STEPTOE
Professor of Economics
southem university

Baton Rouge, Louisiana

New Dhctora for 1986
ALAN R BARTON
President and Chief Executive Officer
Mississippi Power Company
Gulfpolt Mississippi

ROBERT M. SHOFSTAHL
President and Chief Executive Officer
Pelican Homestead and SaAssociation
Metairie, Louisiana

CAROLINE G. THEUS
President
Inglewmd Land 8 Development Company
Alexandria, Louisiana

*
t

SENIOR OFFICERS
c

ROBERT P. FORRESTAL

B. FRANK KING

JOHN M. WALLACE

Preddent

Vice President
and Associate Director of Research

Vice President

ELY S. MATI'ERI

Vice President and Nashville Branch Manager

* JACK G U Y "

First Vice President

B.H. HARGE'IT
Executive Vice President

JEFFREY J. WELLS

Vice President

RICHARD R OLIVER

EDMUND WILLINGHAM

Vice President and General Counsel

Vice President

W.R CALDWELL
Senior Vice President
4

CHARLES D. EAST
Senior Vice President and Comptroller

HARRY C. SCHIERING

Mamgement Committes Seated, MI to right TschkeL Guynn, and Smith. SEandio& S c h M w Caldwell Enst and

General Auditor

HarBett

H. TERRY SMITH
9

Senior Vice pregident

SHEILA TSCHINKEL
Senior Vice President and Director of Research
4

PATRICK K. BARRON
Vice President and Miami Branch Manager

WARDLYN BASSLER
Vice President

HENRY BOURGAUX
Vice President
and New Orleane Branch Manager

HARRY BRANDT
Corporate Secretary and A e s b t
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

FRED R HERR

Management Committee
HARRY C. SCHIERING

JACK G U Y "
Firat Vice Preddent

General Auditor

B.H. HARGE'IT

H. TERRY SMITH

Executive Vice m i d e n t

Vice President
and Bi~minghamBranch Manager

W.R CALDWELL

JOHN R KERR

CHARLES D. EAST

Vice President

Senior Vice President
senior Vice m i d e n t and Comptroller

Senior Vice President

SHEILA TSCHINKEL

Senior Vice M i d e n t and Director of Reaearcb

STATEMENT OF CONDITION

Assets
Gold Certiiicate Account
Special Drawing RigMs Certificate Account
Coin

Loans and securities
Cash Items in Process of Collection

Bank Remises
Other Assets
Interdistrict Settlement Account
Total Assets

Decemba 31,1984
$ 360,000,000

Decemba31,1985
413,000,000

161,000,000

192,000,000

49,655,950

52,703,051

4,018,821,491

5,736,386,771

541,108,045

909,232,707

39,275,879

47,651,466

437,619,842

800,708,587

2,276,686,836

3,476,149,849

$7,884,168,043

$11,627,832,431

*
\

*
Federal Reserve Notes
Deposits*
Deferred Availabiii Cash Items

$5,216,469,381

$7,340,529,859

1,756,695,061

2,936,095,302

545,785,769

914,400,459

98,905,432

143,715,811

$7,615,855,643

$11,334,741,431

Other Liabilities
Interdistrict Settlement Account

Total Liabiiiis

capitalCapital Paid In

$ 134,156,200

146,545,500

134,156,200

146,545,500

Total Capital Accounts

$ 268,312,400

$ 293,091,000

Total Liabilities and Capital Accounts

$7,884,168,043

$1 1,627,832,431

Surplus

STATEMENT OF EARNINGS

$481,819,985

$565,425,720

operating Expenses

88,577,516

95,094,551

Cost of Earnings Credit (Deduct)

12,044,659

11,295,260

Current Net Income

$381,197,810

$459,035,909

-37,009,013

103,092,542

Assessment for Expenses of Board of G o v m

6,826,100

6,372,824

F. R Currency Cost

3 3 i ,034

5,380,162

$334,101,663

$550,370,688

$ 7,686,605

$ 8,445,546

Payment to US Treasury (Interest on F.R Notes)

313,799,808

529,535,842

Transferred to Surplus Account
Net Additions (+) Deductions (9

+I 2,615,250

+12,389,300

$334,101,663

$550,370,688

$121,540,950

$134'1 56,200

12,615,250

12,389,300

$1 34,156,200

$146,545,500

Total Current lname

Net Additions (+) Deductions (3'

Net Earnings Before Payment to US Treasury

DisbiMknofNdEamhDs

Total Income Distributed

Transferred to Surplus -

as abwe

Surplus December 31

-7

SUMMARY OF OPERATIONS

I985

1984

savicest0~Clearing and Collection Services
ctmcks handle&

(millions)

items
(thousands)

(millions)

items

(thousands)

us Government drecks

~alchecks
ACH payments Drocessed

54,928
1,307,228
263,037

77,161
2,138,020
72.087

57,210
1,367,556
427,231

77,470
2,299,243
87,161

6,890,627

6,139

2,947,469

6,373

23,995
1 16,954

4,820,753(r)
6,606,512(r)
1,679,140
3,159,478

25,778
18,274

5,176,656
6,753,204
1,761,108
3,390,971

Wre transfers of funds
Cash Senrim
Total cash receipts
Total cash payments
~encyprocessed
coinprocessed

bans to depository instiikns daily average

securities senrim
wire transfer of mrii
Noncash collectbn

579,000
1,431

553
1,282

25
719,918
1,421

312
1,461

~t0USTmim1~1y

*
t

US savings bonds issued redeemed by Federal Resenre Bank

293

z121

312

2,455

US savinop bonds issued and redeemed by qualified issuing and
paying allents

964

9,866

987

9,850

other Treasury securities issued serviced and redeemed

28,609

198

39,916

182

Oeposits to Treasury Tax and loan accaunts

51,238

936

35,887

1,020

1,414

368,631

1,572

339,834

For additional copies write to:
Information Center
Federal Reserve Bank of ~ n u a n r r
104 Marietta Street, N. W.
ik?
Atlanta, Georgia 30303-2713

@BirminghamBranch
1801 Fifth Avenue, North
m, Alabama 35283

e
515 Julia Street
%*

Jacksonville, Florida 32231
Miami Branch

9100 N. W. 36th Street Extensioi
&Miami Florida 33178

Nashville Branch
301 Eighth Avenue, North
*Nashville, Tennessee 37203

Reserve B a n k o f

nl-cw
-~

1385

A t 1 anta

$ (:H:>

New Orleans
+ 525 St. Charles Avenue

Research Library
Federal Reserve Bank of Atlanta
104 Marietta Street, N.W.
Atlanta, Georgia 30303-2713

Federal Reserve Bank of At
A n n u a l r e p o r t / Federal
Reserve B a n k of A t l a n t a .
AI ru 1985
9.(30

Full text of Annual Report of the Federal Reserve Bank of Atlanta : 1985 Annual Report

FRASER