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I ANNUAL REPORT Message from the President ts at the Federal T h i s report features a brief revie of major develop Reserve Bank of Atianta in 1987. Following these highlightsis an essay which forecasts that, despite the October stock maqket crash and continuing market will become the sixth consecutive year of G.S. economic thstanding these promising prospects, we run the risk as a ss we begin to reduce the huge foreign nation of a lower standard of living demands that we rely not on a falling debt burden we have amassed. To dollar nor on protectionism, but rather that we enhance the internationd campetitiveness of American products. . c t r s, ’ r: c c f - Besides the highlights and economic essay, this report presents consolidated financial statements of the Federal Reserve Bank of Atlanta and its Branches in Birmingham, Jacksonville, Miami, Nashville, and New Orleans. Included is a year-end statement of condition as compared-with 1986; earnings and expenses figures for the twoyears; and a summary of operations for the same period. A list of directQrsand officers who sefked during 1987 pletes the report. In closing, I would like €0thank the directors o the Sixth District for the f valuable counsel they provided throughout the year. My special appreciation is extended to Gne C. Cousinsand Horatio C. Thompson, directors who com- Securities S billion, a record figure; by the Thin the pervasive feeling of umad FEDERAL RESERVE BANKOF ATLANTA Increased investment must not be guided r. Aside from step in that direction i s to increase investment in our nation’s human and physical capital. Like many heavily indebted less developed countries, however, we cannot easily secure new capital, and so must consider ‘ alternatives much like the austerity procally. must focus on building up human capital grams LDCs implement even though, in an accounting sense, such On one hand, Ameri ust learn to government expenditures are considered consume less and save more, particularly to ’ save at a level consistent with the position we hope to maintain in the-world economy. We a h need to pressure policymakers to conechohgies tinue reducing the gap between revenues and outlays. At the same time, though, we must recognize that many budgeted fundsAmericans traditionally have made stan& estimates range from 40to 80 percent-have dard, mass-produced goods especially for already bec o plane, For examthe large domestic market, lea r to ple, entitIe s e indexed to inflapecialked, high-quaIi ucts. t o , place in we can no longer hope w survive priorities; 1 by concentrating on low+ more resolve than either politicians m nation rethinks its produ ho vote for them seem ab€eto muster. moves into the higher er Iarge portions o the budget that canf US.business leadersand workers alike must not readil reduced are interest payments borrowed in the past and apchange established thought patterns. We an the fu need managers who can th lytically propriations to maintain a and creatively, and who c of defense. Cutting more opportunities in the far comers of. The sad irony is that our schoolsare hard put in public infrastructure or a smaller committo teach students $0 become print- and corn- ment to.education, Either strategy would be obviously shortsighted, A starting point for meaningful progress might be fo-consider a truly neutral tax sysbet- tem that discouragesconsumptionrelative to hymakers who are other taxes. Of course, proour income will be available for sumption. In the long run, though, they are the sole means for the United States to work 11 . BRANCH DIRECTOR RTRMTNC NEW O R WANhJiNG WO-N Assistant Vice P tantvke President WILLIAM ShaELT Assistant Vice P t and AssWantBranchhbnager RAYMDNDLA Aesistwt Vie Presid
