View original document

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

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