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Can the Midwest
Maintain its M o m e n t u m ?

T h e Federal Reserve Bank of Chicago is one of 12 regional
Reserve Banks across the United States t h a t , together
with the Board of Governors in Washington, D.C., serve
as the nation's central bank. The role of the Federal Reserve
System, since its establishment by an act of Congress
passed in 1913, h a s been to foster a strong economy,
supported by a stable financial system.
To this end, the Federal Reserve Bank of Chicago
participates in the formulation and implementation of
national monetary policy, supervises and regulates banks
and b a n k holding companies, and provides financial
services to depository institutions and the U.S. government.
Through its head office in Chicago, branch in Detroit,
regional offices in Des Moines, Indianapolis and Milwaukee,
and facility in Peoria, the Federal Reserve Bank of Chicago
serves the Seventh Federal Reserve District, which includes
major portions of Illinois, Indiana, Michigan and Wisconsin,
plus all of Iowa.

OUR

VISION

• Further the public interest by fostering a sound
economy and stable financial system
• Provide products and services of unmatched value
to those we serve
• Set the standard for excellence in the
Federal Reserve System
• Work together, communicate openly,
be creative and fair
• Live by our core values of integrity, respect,
responsibility and excellence
CONTENTS

President's Message

Can the Midwest
Maintain its Momentum?

1996 Highlights

Operations Volumes

Financial Statements

Directors and Advisory Councils

Officers

P r e s i d e n t ' s

M e s s a g e

From left: Chairman Robert Healey, Deputy Chairman Lester McKeever,
President Michael Moskow, and First Vice President William Conrad.

1996
^

was a good year—a year

of achievement for the economy, the banking system,
and the Federal Reserve Bank of Chicago.
The economy grew at a very respectable pace, with
low inflation and high levels of employment. The Midwest,
in particular, prospered as it continued to demolish its
old image as the nation's "Rust Belt."
The banking system also enjoyed another solid year,
as indicated by steady loan growth and a healthy return
on assets. The outlook for financial institutions nationally
and in the Midwest remains quite positive.
Like the economy and the banking sector, the Federal
Reserve Bank of Chicago had another successful year.
We made significant progress toward setting the standard
of excellence in the Federal Reserve System, progress
that will leave the Bank well-positioned to do even better

Chicago board, and Charles Allen, John Forsyth, and
William Odom from our Detroit board. In particular,
I would like to extend my appreciation to Robert Healey,
who served as chairman for two years and as deputy
chairman for three years. He provided outstanding leadership and insight during his service on the board.
Many of the Chicago Fed's initiatives during 1996
illustrate the Bank's efforts to prepare for future challenges. Perhaps the premier example is the Bank's comprehensive study of the regional economy, The Midwest
Economy: Looking Back for the Future. The following
article highlights the study, outlining some of the major
findings and offering a variety of perspectives on how
regional policymakers can help sustain the Midwest's
momentum. Through such efforts, we hope we can
contribute to a vibrant regional economy that is firmly
positioned to thrive in the coming years.

in the future.
The Bank's many accomplishments during 1996 are
the result of the outstanding efforts of our staff members.
In addition, our directors in Chicago and Detroit provided
invaluable guidance, unselfishly giving their time and
expertise to the Bank. I would like to thank six individuals
who completed their service on the board in 1996: David

Michael H. Moskow
President
March 24, 1997

Fox, Robert Healey, and Charlene Sullivan from our

Can the Midwest
Maintain its Momentum?
Written off as the"""""RustBelt"""duringthe 1970s and 1980s, the
Midwest has a distinctive
has transformed
productivity,

new shine to it these days. The region

itself into a lean and agile center of

with unemployment

industrial

rates that are the envy of

most of the U.S.
The Midwest has made a remarkable comeback. But can the
region maintain

its momentum? At the Federal Reserve Bank of

Chicago, we decided that question was worthy of a closer look.
Working with a diverse group of experts, Chicago Fed economists
in 1996 carried out a comprehensive study of the Midwestern economy. They focused on the states of the Seventh Federal
District: Illinois, Indiana,

Iowa, Michigan, and

Reserve

Wisconsin.

The goal of the study was to gain a clearer under-

The key question is how the Midwest arrived at a

standing of why the Midwest rebounded in order to

world-class standard, and what it will take to maintain

determine w h a t the region needs to do to continue its

it. We examined this question in-depth during the course

success. The study has a two-fold benefit: it will put

of 1996, holding six individual seminars and a wrap-up

regional policymakers in a better position to develop

session to discuss the results.

public policy to sustain the Midwest's momentum; and it

The following pages summarize some of the study's

will help the Chicago Fed contribute to national monetary

important findings and offer related viewpoints of a

policy, the most important responsibility of the Federal

variety of conference participants. Also included are some

Reserve System.

strategic options for policymakers to consider as the

To carry out the study, we brought together a wide

Midwest positions itself for the future. The information

variety of researchers, academics, government decision-

is provided within the framework of six key questions:

makers, and business, community, and labor leaders.

• Is the work force prepared to sustain growth and

Providing guidance was an advisory group, which included
as honorary members the governors of the five states
of the Seventh District. We examined the numerous
forces that contributed to the region's success, studying
changes — both inside and outside the Midwest — that
affected the economy. We also attempted to build consensus on what policies will help keep the economy strong.
As expected, we found that manufacturing and agriculture are still the driving forces within the Midwest
economy. Those are the region's traditional strengths, and
that has not changed. The difference is that the region is

development?
• How can the Midwest continue to improve industrial
productivity?
• Can the Midwest continue to prosper in the global
economy?
• What can state and local policy do to help sustain the
region's current economic momentum?
• Will the Midwest's metropolitan areas be a source
of strength or weakness?
• Can rural areas sustain their turnaround?
It's important to address these issues because regional

operating much more efficiently — at a world-class

economic advantage is fleeting. This is a window of oppor-

level — by taking advantage of new technology and cutting-

tunity for the Midwest to build on its success. The Chicago

edge production methods such as lean manufacturing.

Fed can help the Midwest maintain its momentum by

This significant improvement in efficiency is the

contributing a broad-based foundation of information

single most important reason for the Midwest's turn-

about the regional economy—information t h a t can

around. It is true that the Midwest has benefited from a

serve as a building block for the development of effective

number of external trends such as falling energy prices,

regional policy. Simply put, by studying the past, we can

a depreciating dollar, and a shift in government ex-

prepare ourselves for a prosperous future.

penditures away from defense spending. Nevertheless,
the region's h a r d - e a r n e d progress in increasing its
efficiency is the driving force behind its success.

Is the region's w o r k force
prepared t o sustain g r o w t h and
development? Midwest workers are highly skilled and
productive, but training methods and opportunities for certain segments
of the work force need

T h e productivity of the Midwest work force has clearly contributed
to t h e region's t u r n a r o u n d . To m a i n t a i n this productivity, t h e

be improved.

skills of all workers need to be continuously upgraded. Creating the
highest-quality work force depends on giving individuals skills to
be life-long learners. A key starting point is ensuring high-quality
elementary and secondary education. For those already in t h e
work force, new training methods t h a t better meet the needs of
employers are necessary. Finally, improving training and employm e n t opportunities for t h e disadvantaged is also important to
creating a work force t h a t will sustain growth and development.

K e y

C o n f e r e n c e

F i n d i n g s

BRINGING THE

DISADVANTAGED

INTO THE WORK

FORCE

The demand for skilled workers and the
recent restructuring of welfare have intensified the need to develop better methods
for bringing the disadvantaged into the
MEETING THE

work force. Toby Herr of the Erikson

Institute discussed the Project Match

NEEDS

EMPLOYERS

Bob Jones of the National Alliance of

program, which places welfare recipients
from Chicago's Cabrini Green housing

Business discussed the need for policies

project into jobs. This program has

to match more closely the new realities

achieved favorable results by providing

of the labor market. There is no question

participants with immediate exposure

that the old model of one employer

to the workplace, supported by ongoing

and one career for life is gone forever.

assistance to keep jobs, to advance to

Workers must have the education and

better jobs (often requiring a return

training to adapt to new jobs within their

to school), and to find re-employment

company or their industry. They also must

if new jobs are lost. This approach often

have portable health care and pension

shows more promise than traditional

plans as well as industry-based, certifiable

methods of providing the training before

standards that give them recognized
credentials that will make it easier to

a client takes the job.

adapt to changing labor markets.

O p t i o n s

•
that

Promote

reflects

efforts

to continually

the new market

improve

realities

that

the course of their
•

Establish

industry-based

certified

skills to benefit

and the firms hiring

those

both workers

changing

understanding
by studying

Develop

better

of how to bring the disadvantaged
programs

training
during

career.

jobs

information

about

can provide
Increase

skills, with

are likely to change jobs

workers.
•

•

workers'

workers

that

reflect "best

labor

market

the skills needed

into the work

needs so that training
by

employers.

force

practices."

PREPARING COLLEGE

STUDENTS

F O R T H E JOB M A R K E T

Students entering the work force often
need information about labor markets and
career prospects. The Federal Reserve
Bank of Chicago's Phil Israilevich, in conjunction with the Regional Economics
Applications Laboratory, is developing software that will allow students in the City
Colleges of Chicago system to examine
the earnings and growth potential for
a wide range of careers in the Chicago
area. The software also identifies college
courses needed to enter these fields.

programs

H o w can the Midwest
continue t o improve industrial
productivity? Many Midwestern industries have become
more competitive by improving their productivity. A key for the future will
be facilitating the spread

Much of the Midwest's resurgence is due to gains in two historically
i m p o r t a n t sectors: m a n u f a c t u r i n g and agriculture. The region

of productivity-enhancing

continues to have a higher concentration than the rest of the nation
in these economic sectors. New production methods and technology

methods and technology

have m a d e Midwest producers more competitive, enabling t h e
region to t a k e a d v a n t a g e of t r a d e opportunities and reclaim its

throughout

the

region.

share of the domestic market. The Midwest economy will continue
to improve if all types of industries and firms can share in these
efficiency improvements.

K e y

C o n f e r e n c e

F i n d i n g s

W h e r e are U.S. auto assembly plants located?

Midwest - 31

53.4%

MAINTAINING

THE

MANUFACTURING
Elsewhere

46.6%

MOMENTUM

Don Smith of Carnegie Mellon University

in the U.S. - 27

discussed high-performance manufacturing systems that maximize the flow of inRECLAIMING
AUTO

THE

formation within companies and in their

INDUSTRY

dealings with suppliers. The manufacturing
The auto industry's strong performance

approach was brought to the Midwest by

has been key to the region's turnaround.

Japanese auto transplants. The Midwest is

The auto industry reconcentrated in the

well positioned to utilize these techniques

Midwest, according to James Rubenstein

as the best U.S., European, and Japanese

of Miami University of Ohio. A total of

manufacturers all have a presence in the

31 of 58 auto assembly plants nationally

region. To sustain the Midwest's manufac-

are in the Midwest. Although nine auto

turing rebound, Smith suggested reducing

plants closed in the region from 1979-

intra-regional trade barriers and increasing

1996, 13 new plants opened, including a

the efficient flow of information about

number of foreign producers. The innova-

new technology to help implement inno-

tions introduced by foreign producers

vative manufacturing techniques. Policy-

have facilitated the development of new

makers should also consider addressing

production techniques.

potential labor shortages in key areas due
to the aging of the region's work force.

O p t i o n s

Study the best methods

and models

to all types
Enhance

efficiency

by strengthening

and the manufacturers

relationships

between

who buy their

products.

Develop

a better

for transferring

technology

businesses.

suppliers

understanding

of how to apply

such as lean

new production

methods,

manufacturing.

APPLYING N E W
PRODUCTION METHODS —
LEAN MANUFACTURING

Increased use of lean manufacturing techniques is partly responsible for the region's
recovery, according to the Chicago Fed's
Thomas Klier. Lean manufacturing is a
production system that emphasizes teamw o r k on the shop floor, just-in-time
inventory, flexible production equipment,
and close relationships with suppliers.
These productivity-enhancing methods
are being applied at all types of manufacturing firms — old and new. The challenge
is transferring these methods to even
more companies to ensure that both
large and small operations can take
advantage of them.

H o w can the Midwest
continue t o prosper in the global
economy? The region will prosper if Midwestern companies
continue t o enhance

T h e Midwest has benefited from an inflow of foreign investment
and an expansion of international trade, which has been facilitated

productivity and compete

by reduced barriers. The product mix of Midwestern businesses is
well suited to the needs of high-growth emerging markets through-

aggressively overseas.

out the world. Durable goods and agricultural products are in high
demand, and t h a t h a s contributed to t h e region's recent strong
performance. Additionally, foreign investment in the Midwest has
brought the area new capital and in many cases new production
methods. Overall, globalization has made Midwestern firms more
competitive both at home and abroad.

K e y

C o n f e r e n c e

F i n d i n g s

OPPORTUNITIES IN THE
N E W TRADE

CLIMATE

Midwestern firms are well positioned to
benefit from the growing liberalization of
world trade, particularly in emerging
BENEFITING

markets, according to David Walters of the

TRADE

Office of the U.S.Trade Representative.

FROM

AGREEMENTS

W h o benefits from the North American

Recent trade pacts have opened up new
markets, offering an opportunity to Mid-

Free Trade Agreement (NAFTA) was the

western firms. Evidence suggests that firms

focus of a study by Chicago Fed's Michael

that pursue these opportunities often

Kouparitsas. Given NAFTA's short history,

grow faster and pay higher wages.

that's a difficult question to answer. But
by using a sophisticated type of modeling
to study the international trade agreement, Kouparitsas suggested that all three
N o r t h American trading partners will
make economic gains and that the Midwest will benefit from an expansion in
durable goods manufacturing activity.

O p t i o n s

Develop

a better

understanding

are most closely

of which
linked

Distribute

Investigate

the effect

of exchange

rate movements

of Midwestern

domestic

to Midwestern

the critical

on the competitive

and international

markets

products.

information

that

firms

need to enter

foreign

markets.

position

firms.

NEW
TO

APPROACHES

UNDERSTANDING

EXCHANGE

RATES

U.S. goods have been widely viewed as a
better buy overseas because of a decline
in the value of the dollar relative to key
foreign currencies, such as the Japanese
yen and the German mark. Chicago Fed
economists Jack Hervey and Bill Strauss
took a regional approach to examining
the effect of exchange rates on exports.
They found that while the value of the
dollar has tended to depreciate in many
countries since 1974, it has generally
appreciated in those countries that are
most likely to trade with the Midwest.
This suggests that the renewed demand
for Midwestern goods is not simply due to
a price advantage resulting from changes
in the value of the dollar.
9

H o w can state and local
policy help t o sustain the region's
momentum? State and local governments need t o
continue pursuing innovative ways t o provide essential services
while keeping

State and local policymakers in the Midwest have received national
attention for their creative approaches, devising programs ranging

spending in check.

from new welfare policies to changes in school funding. At the same
time, prudent fiscal policies have restored the governments' financial
stability, which is key to t h e well-being of the region's economy. As
the federal government gives more responsibility to the states, these
t r e n d s need to continue.

K e y

C o n f e r e n c e

F i n d i n g s
W h e r e do metro Chicago exports go?

Rest of U.S.

85.0%

Rest of W o r l d

ADJUSTING TAX
T O SUPPORT

SYSTEMS

GROWTH

7.1%

Mexico

0.8%

Canada

7.1 A

Many states have worked hard to reverse
the Midwest's image as a region with high

STRENGTHENING

taxes. In particular, a number of regional

FOR R E G I O N A L

policymakers have introduced reforms to

OPPORTUNITIES

TRADE

Although global trade is essential, it is

revamp their tax structures. Joint work

important to consider the links between

by the Chicago Fed's Bill Testa and Tulane

Midwestern firms and their domestic

University's Bill Oakland suggests the need

trading partners, said Geoff Hewings of

for more long-term improvements in state

the University of Illinois. The Chicago

tax structures, such as taxing businesses

metropolitan area, for example, sends

based on the cost of the benefits they re-

many more goods to other parts of the

ceive from their state. This could prompt

U.S. than to foreign countries. In some

future economic growth by reducing the

cases, differing rules and regulations in U.S.

distortionary effect taxes have on the

states may hamper such trade. Hewings

choice of where to locate a business.

suggested that barriers to intra-regional
trade, such as varying occupational
licenses and weight and length limits on
trucks, should be examined t o ensure
that they are necessary.

O p t i o n s

Continue

to develop

equitable

and diversified

on one primary
• Continue

prudent

spending

policies

that

support

•

sustainable

Encourage

information

Examine

intra-regional

trade

source

tax systems

that

do not

rely

revenue.

growth.

the development
to ensure

barriers

that

to ensure

that

of a wide range

policymakers

they are

of state

and regional

are fully informed

when

economic

crafting

policy.

necessary.

RESTORING FISCAL

BALANCE

Midwestern states have taken advantage
of the resurgent regional economy to
improve their fiscal position, according
t o the Chicago Fed's Rick Mattoon.
These states have avoided major tax
increases throughout the 1990s, building
substantial budget reserves and avoiding
the creation of expensive new spending
programs.Thisprudent fiscal policy leaves
the region's governments in good shape
to accept new responsibilities from the
federal government.

W i l l the Midwest's
metropolitan areas be a source
of strength o r weakness? To be a source
of strength, the region's metropolitan areas need t o continue their
transformation t o centers of key business services and high-tech
manufacturing, while seeking

W h i l e metropolitan areas continue to expand, the growth
is more dispersed. Economic activity h a s been spreading

solutions t o serious social

out toward the urban fringe, leaving redevelopment problems
for the core city. As metropolitan areas re-invent themselves,

and economic problems.

it is important to investigate the causes of dispersed growth.
There is a healthy debate as to whether this trend is a result
of artificial subsidies and government policies or is being
driven by technological changes. A key to the region's continued success will be developing a better understanding of
how the relationship between cities and their suburbs affects
economic growth.

K e y

C o n f e r e n c e

F i n d i n g s

LINKING

METRO

W O R K E R S T O JOBS

A mismatch often exists in urban areas

REDEVELOPING B R O W N FIELDS

between where jobs are located and

Charles Bartsch of the Northeast-

where potential workers live. Davis

Midwest Institute discussed policies

Jenkins from the Great Cities Institute

geared toward improving the redevelop-

of the University of Illinois at Chicago

ment prospects of environmentally

suggests that programs such as the

contaminated land, often referred to as

Suburban Job-Link Corp., designed to

brownfields. A number of factors affect

transport urban workers to available

the development prospects of brown-fields.
The

suburban jobs, is one promising ap-

degree of environmental

proach for addressing this mismatch.

contamination is a key issue, but other
factors such as size of available land
parcels and related tax and regulatory
burdens are also important. A number
of policymakers at the state and federal
levels are considering legislation t o
establish a liability standard for both lenders and property owners, which would
make it easier to determine the economic
feasibility of redeveloping brownfields.

O p t i o n s

•

Develop

are realistic,

a better

understanding

and how land availability
development

Investigate

the different
that

promote

ways that

metropolitan

fair and efficient

areas grow and devise

patterns

Encourage

of what forms of urban
and environmental

conditions

can

affect

opportunities.

policies

development.

a better

understanding

of how technology

of economic

affects

the

A SERVICE

Service Employment Growth
for Selected Metropolitan Areas
1981 and

location

activity.

CONVERTING

(Percent of total employment

development

ECONOMY

Urban areas have taken advantage of
1994)

technology to convert from manufacturing to service economies, said Robert
Atkinson of the U.S. Office of Technology
Assessment. However, technological
breakthroughs are now permitting some
of these service jobs to move out of the
central city. If metropolitan areas are to

Chicago

Detroit

Indianapolis

Milwaukee

prosper, it is important to understand
how technology and public policy affect
the location of economic activity.

Can rural areas
sustain t h e i r turnaround?

Agriculture

will continue t o dominate rural economies but will require fewer
workers. To sustain growth, manufacturing and new industries
will be needed

Midwestern rural areas have shaken off much of the ill-effects
of the farm crisis of the early 1980s. New production methods

supplement agriculture.

and technologies have made farms highly productive, and growth
in export markets has sparked demand for Midwestern agricultural products. As the agricultural economy improved, population
growth in rural areas rebounded in the early 1990s, reversing
the downturn of the 1980s. Still, for rural areas to sustain their
recovery, new types of industries need to be identified.

NEW

INDUSTRIES

IN RURAL AREAS

The movement of manufacturing to rural
areas is a positive development, suggested

NEW PRODUCTION

Andrew Bernat of the U.S. Department

ON THE

METHODS

of Commerce. Manufacturing growth in

The Chicago Fed's Gary Benjamin provid-

FARM

rural areas has greatly exceeded that

ed an example of how farm technology

found in metropolitan areas in recent

and production methods are changing the

years, according to Bernat. Fraser Hart

nature of hog production. A new entity,

of the University of Minnesota said that

the mega-farm, has emerged, significantly

retirement and recreational services are

increasing the size and scale of hog farms.

also contributing to growth in rural areas

The mega-farm has implications for where

of the Midwest. The increasing diversity of

hogs are raised, as states such as N o r t h

rural economies provides new employ-

Carolina have been more willing than many

ment opportunities as farming continues

Midwestern locations t o accept them.

t o shed labor.

To maintain its dominance in pork production, the Midwest will need to weigh
the costs and benefits of mega-farms.

O p t i o n s

Encourage

the development

of industries

such as food processing

• Capitalize
health

on advances

in telecommunications

care, educational,

and business

to expand
services

•

Promote

declining

Promote

the Midwest's

the quality

in rural

comparative

highly productive

complementary

and agricultural

agriculture,

services.

areas.

education
employment

agricultural

and

retraining

opportunities

advantage

of farm

and

rural

due to productivity

residents
gains

counter
agriculture.

due to its

farmland.

KEEPING THE
SECTOR

AGRICULTURE

HUMMING

Agriculture is a key ingredient in the
Midwest success story. Farm productivity
is up, as measured by higher crop yields
and livestock production. The Chicago
Fed's Mike Singer suggested this strong
performance might be improved by increasing opportunities for industries, such
as food processing, that complement
the agricultural sector.

The Bank in

1996

• A project group began establishing a new unit to improve service for the Bank's customers.
• The Bank fully recovered the cost of providing priced
financial services.
• Over $34 trillion worth of wire transfers —31/2times U.S.
GDP — were completed at the Chicago Reserve Bank.

1996

HIGHLIGHTS

• President Moskow and other senior officers outlined
plans to transform the Bank's culture during a series of
meetings attended by about 1,000 staff members.
• Research activity included studies on risk management
and its impact on bank behavior, fair lending regulations,
macroeconomic shocks and their aggregate effects, and the
financing sources for small business investment companies.
• The Economic Research Department upgraded its index
of Midwest manufacturing activity and distributed it on
a regular basis in a new format.
• The Bank hosted the 32nd annual Conference on Bank
Structure and Competition, with the theme "Rethinking
Bank Regulation: What Should Regulators Do?"
• Economic Research staff had 43 papers published or
accepted for publication in leading U.S. and international scholarly journals and presented 46 papers to
professional groups.
• The Chicago Fed hosted numerous programs for foreign
visitors, including economists and senior officials from
foreign central banks.
• Research Statistics processed 244 applications and met
more than 94,000 report deadlines.
• The Supervision and Regulation Department performed
over 800 inspections and examinations, one of the heaviest
workloads in the System.

• The Chicago Fed played a significant role in implementing the Electronic Federal Tax Payment System.
• To encourage more efficient electronic alternatives,
the Bank focused on expanding Fedline connections to
customers, increasing electronic check processing, and
encouraging the use of automated clearinghouse.
• The Milwaukee Office tested the use of imaging technology to process checks more efficiently and meet
customer demand.
• The Detroit Branch installed FASTRAC, an automated
tracking and adjustment resolution system, which increased
productivity in check adjustment.
• Electronic cash letter (ECL) deposits increased by 60
percent, bringing ECL volume to 25 percent of total
check volume deposited.
• The Detroit Branch's currency operation had the lowest
unit cost in the Federal Reserve System.
• The Bank completed consolidation of its return-item
notification service for large dollar checks.
• The Bank began distributing newly designed $100 bills.

• The Chicago Fed worked with foreign bank regulators
as part of a Systemwide effort to strengthen global
supervision.

• The Chicago Fed was named one of the System's processing sites for commercial tenders for purchasing
government securities.

• Supervision and Regulation introduced the Examiner
Workstation, a new software application to help make
examinations more efficient and risk-focused.

• Human Resources Services developed a new paidtime-off policy.

• The Bank provided significant input to the Board of
Governors on regulatory changes, including revisions to
Regulation Y, Bank Holding Companies, to help streamline the applications process.
• Supervision and Regulation worked with industry
groups to develop an understanding of non-traditional
banking products and their possible effects on financial
institutions.

• Commercial automated clearinghouse (ACH) volume
increased 24 percent. Contributing to the jump in volume
were two ACH price decreases implemented to encourage
the use of electronic payments and meet the demands
of the market.

• A leadership development plan was initiated for managers.
• The Bank conducted tours of its operations for more
than 9,600 visitors.
• A comprehensive assessment aimed at improving the
efficiency of the Bank's support and overhead processes
was completed by a review team.
• Bank staff continued to play a leadership role through
participation in many System groups.

O p e r a t i o n s

OPERATIONS

V o l u m e s

VOLUMES

Dollar

Number

Amount

1996

1995

Items

1996

1995

1.8 billion

1.7 billion

Check & Electronic Payments
Checks, N O W s , &
share drafts processed

1.3 trillion

1.2 trillion

Fine sort & packaged
checks handled

111 billion

101.2 billion

152.8 million

217.2 million

U.S. government checks processed

48.1 billion

49.5 billion

48.1 million

50.2 million

Automated Clearinghouse
(ACH) items processed*

2.2 trillion

2.5 trillion

657.9 million

626.3 million

Transfer of funds

33.8 trillion

31.5 trillion

15.6 million

14.3 million

Electronic checks processed

16.0 million

13.1 million

620.4 million

507.8 million

35.9 billion

32.7 billion

9.6 billion

7.7 billion

Cash Operations
Currency received and counted
Unfit currency destroyed
Coin received and counted

777.4 million

2.6 billion
801.9 million

836.2 million

5.8 billion

2.4 billion
958.3 million
6.7 billion

Securities Services for Depository Institutions
Safekeeping balance December 31:
1 1.7 billion

Definitive securities
Book-entry securities
Purchase & sale
Collection of securities
& other noncash items

349.0 billion

406.7 billion

2.9 billion

4.0 billion

16.9 thousand
-

l2.7thousand

24.4 thousand
-

14.6 thousand

232.2 thousand

194.7 thousand

7.1 trillion

I.I million

3.1 billion

1.2 billion

1,270

855

1 10.2 million

Book-entry government securities

13.3 billion

167.0 million

The Federal Reserve Bank of
Chicago's volume of operations
during 1996 reflected the System's
continuing efforts to improve
efficiency and encourage the use
of electronic payments. The volume
of funds transfers and Automated
Clearinghouse (ACH) transactions
continued to rise. The volume of
electronic checks processed also
increased, due in part to marketing efforts to encourage efficiency
through electronic processing
methods. The number of paper
checks processed increased slightly, reflecting service enhancements
and lower prices.

Loans to Depository Institutions
Total loans made during year

Services to U.S.Treasury and Government Agencies
Redemptions of definitive
government securities

189.3 million

366.3 million

Government coupons paid

35.3 million

10I.I million

Federal tax deposits processed

87.9 billion

99.3 billion

2.2 billion

2.3 billion

Food stamps redeemed

*A consolidation
is calculated,
been

reported

of processing

prompted

resulting

in lower

volume

using

the previous

a change
growth

for

in how ACH
1996

than

6.3 thousand
1 1.4 thousand

10.3 thousand
21.7 thousand

874.5 thousand

883.6 thousand

435.3 million

443.0 million

volume
would

have

method.

1 9 9 6

F i n a n c i a l

S t a t e m e n t s

STATEMENT OF

CONDITION

(in millions)

12/31/96

12/31/95

Assets

Year-to-year changes in Reserve
Bank assets and liabilities largely
reflect general economic developments and System monetary policy
actions. By purchasing securities in
the open market and making loans
to depository institutions, the Federal Reserve increases reserves,
providing a base for monetary and
credit expansion in accord with the
national economy's growth needs.
In 1996, the Bank's total assets fell
slightly as a large increase in currency outstanding was more than
offset by a decline in deposits of
depository institutions and day-today interdistrict fluctuations.

Gold Certificates

1,140

1,220

979

1,079

1,537

519

42,727

44,024

2,296

2,401

Accrued Interest Receivable

385

448

Interdistrict Settlement Account

157

Property and Equipment, N e t

149

1 12

Special Drawing Rights Certificates
Coin
Items in Process of Collection
Loans to Depository Institutions
U.S. Government and Federal Agency Securities, N e t
Investments Denominated in Foreign Currencies

Other Assets
Total Assets

49,534

49,988

44,858

41,758

Liabilities and Capital
Liabilities:
Federal Reserve Notes Outstanding, N e t
Deposits:

Depository Institutions

3,539

2,574

Other Deposits

103

Deferred Credit Items

808

463

Statutory Surplus Transfer Due U.S.Treasury
Interest on Federal Reserve Notes Due U.S.Treasury
Interdistrict Settlement Account
Accrued Benefit Cost
Other Liabilities
Total

Liabilities

3,016

71
19

22
$

48,473

49,042

Capital
Capital Paid-in

537

473

Surplus

524

473

Total

Capital

Total Liabilities and Capital

1,061

946

49,534

49,988

STATEMENT OF

INCOME

For the years ended Dec. 31, 1996 and Dec. 31, 1995 (in

1995

1996

millions)

Interest I n c o m e :
Interest on U.S. Government Securities

Interest on Foreign Currencies

2,604

2,721

Interest on Loans
to Depository Institutions
Total Interest

Income

2,658

2,811

O t h e r O p e r a t i n g Income:
99

Income from Services

96
17

Reimbursable Services to Government Agencies

(199)

Foreign Currency Gains (Losses), N e t

1 14

Government Securities Gains, N e t

Other Income

Total Other

Operating

Income

(Loss)

(77)

231

O p e r a t i n g Expense:
126

123

Occupancy Expense

Equipment Expense

Salaries and Other Benefits

Cost of Unreimbursed Treasury Services
Assessments by Board of Governors

Other Expense
Total Operating

4
61

Expense

90
$

2,264

Income Before Cumulative Effect of Accounting Change

314

2,728

(7)

Cumulative Effect of Change in Accounting Principle
N e t Income Prior t o Distribution

317

A Reserve Bank's income is largely
a by-product of monetary policy
rather than the pursuit of profit.
Most of the Bank's income is interest
on its share of the System's Open
Market Account portfolio of securities, and appropriately, the vast
majority of this income is turned
over to the U.S. Treasury each year.
Current income decreased compared to 1995, primarily because
of a decrease in interest received
from government securities and a
loss in foreign currency. Operating
expenses rose very slightly, with
the cost of increased personnel
and centralized automation largely offset by expense reductions in
various areas.

2,264

2,721

Distribution of N e t I n c o m e :
Dividends Paid t o Member Banks

Transferred t o Surplus

1,587

2,640

582

Payments to U.S. Treasury as Interest
on Federal Reserve Notes
Payments to U.S. Treasury as Required by Statute

2,264

2,721

9 6

F i n a n c i a l

S t a t e m e n t

STATEMENT

C H A N G E S

For the years ended Dec. 31, 1996

CAPITAL

and Dec. 31,1995

(in

millions)

Capital Paid-in

Member banks in the Seventh
Federal Reserve District are required to purchase capital stock in
the Federal Reserve Bank of Chicago,
as prescribed by the Federal Reserve
Act. Member banks are required to
purchase an amount of stock equal
to six percent of their capital and
surplus. A six percent annual dividend is provided on the paid-in
stock, as specified by law. The holding of stock does not carry with it
the control and financial interest
conveyed to holders of common stock
in for-profit organizations. During
1996, the value of Bank capital increased because member banks
carried larger amounts of capital
and surplus, requiring them to hold
additional shares of capital stock.

Balance at December 31,1994

419

838

(8,380,307 shares)
54

N e t Income Transferred to Surplus

N e t Change in Capital Stock
Issued (Redeemed)

(1,074,008 shares)

Balance at December 31, 1995

473

946

( 9,454,3 15 shares)
Net Income Transferred t o Surplus

(13)

Statutory Surplus Transferred
to U.S.Treasury
N e t Change in Capital Stock
Issued (Redeemed)
64

(1,286,438 shares)
Balance at December 31,1996

537

524

(10,740,753 shares)

The statements
management.
available

of income, condition,

and changes

Copies of full and final financial

by contacting

in bank capital

statements,

complete

the Federal Reserve Bank of Chicago's

P.O. Box 834, Chicago, Illinois 60690-0834,

Total Capital

Surplus

312-322-5111.

are prepared

by Bank

with footnotes,

Public Information

are
Center,

1,061

E x e c u t i v e

C h a n g e s

DIRECTORS

ADVISORY

Members of the Federal Reserve Bank of Chicago's board
of directors are selected to represent a cross section of the
Seventh District economy, including consumers, industry,
agriculture, the service sector, labor, and commercial banks
of various sizes.
The nine-member board includes three bankers and
three nonbankers, all elected by member banks. Three additional nonbankers are appointed by the Board of Governors,
which also designates the Reserve Bank chairman and
deputy chairman from among its three appointees.
The Board of Governors also selects three nonbankers
to serve on the seven-member board of the Bank's Detroit
Branch. Four additional directors are selected by the Chicago
Reserve Bank board. The Branch board selects its own
chairman each year. All Reserve Bank and Branch directors
serve three-year terms, with a two-term maximum.
Director appointments and elections at the Chicago
Reserve Bank and its Detroit Branch effective in 1996 were:
• Robert M. Healey redesignated Chairman.
• Lester H. McKeever, Jr. designated Deputy Chairman.
• Arthur C. Martinez appointed to a three-year term as
a director, replacing Richard G. Cline.
• Florine Mark designated Branch Chair, replacing
John D. Forsyth.
• Richard M. Bell and Stephen R. Polk appointed to threeyear terms as Branch directors replacing Norman F.
Rodgers and J. Michael Moore.
At year-end 1996 the following appointments and elections
to terms beginning in 1997 were announced:
• Lester H. McKeever, Jr. designated Chairman.
• Arthur C. Martinez designated Deputy Chairman.
• Robert J. Darnall, Chairman, President, and Chief Executive Officer of Inland Steel Industries, Inc., Chicago, Illinois;
Verne G. Istock, Chairman, President, and Chief Executive
Officer of First Chicago NBD Corporation, Chicago, Illinois;
and Migdalia Rivera, Executive Director of the Latino
Institute, Chicago, Illinois, appointed to three-year terms
as directors replacing Robert M. Healey, David W. Fox, and
A. Charlene Sullivan.
• Florine Mark redesignated Branch Chair.
• Irma B. Elder, President of Troy Motors, Troy, Michigan;
Timothy D. Leuliette, President and Chief Operating Officer,
Penske Corporation, Detroit, Michigan; and Denise
Ilitch Lites, President, Olympia Development Inc., Detroit,
Michigan, appointed to three-year terms as Branch
directors, replacing Charles E. Allen, William E. Odom,
and John D. Forsyth.

The Federal Advisory Council, which meets quarterly to
discuss business and financial conditions with the Board of
Governors in Washington, D.C., is comprised of one member
from each of the 12 Federal Reserve Districts. Each year the
Chicago Reserve Bank's board of directors selects a representative to this group. Roger L. Fitzsimonds, who served
as the Seventh District's representative in 1995 and 1996,
was re-appointed to a third one-year term for 1997.
Members of the Bank's two advisory councils, who are
selected from nominations by Seventh District small business
and agricultural organizations, served for a third year in
1996. The councils provide a vital communication link
between the Bank and these important sectors.

COUNCILS

OFFICERS

The Bank's board of directors acted on the following promotions during 1996:
• James W. Nelson to vice president, Supervision and
Regulation.
• David E. Ritter to vice president and culture transformation team leader.
• Yurii Skorin, to vice president and associate general counsel,
Legal Department.
• Jeffrey S. Anderson to assistant vice president, Check Services.
• Guadalupe Garcia to assistant vice president, Cash Services.
• Mary H. Sherburne to assistant vice president, Check Services.
• Tyler K. Smith to assistant vice president, Support Services.
New officers appointed by the board in 1996 were:
• Thomas M. Matsumoto to assistant vice president, Automation Services.
• Ellen J. Bromagen to accounting officer, Accounting Services.
Thomas G. Ciesielski, vice president, Human Resource
Services, served on the Management Committee during 1996.
Franklin D. Dreyer, senior vice president, Supervision
and Regulation and Loans, retired after 38 years of service
to the Bank. Richard P. Bush, vice president, Accounting
Services, retired after 25 years of service.

D i r e c t o r s

and

A d v i s o r y

1996
Robert

Healey,

C o u n c i l s

Board of Directors,
Lester McKeever,
Donald

Federal Reserve Bank of Chicago, from left to
Arthur

Schneider,

Martinez,
Arnold

Reserve Bank directors have a general governance responsibility for the management of operations, which includes
approving budgets, expenditures, and official appointments.
In addition, directors provide advice and counsel to the
Reserve Bank president on the state of the economy and
financial system. Reserve Bank directors also determine,
subject to review by t h e Board of Governors, the Bank's
discount rate. The Chicago Reserve Bank and Detroit Branch
directors are selected to represent a variety of interests and
activities within the District and bring to their diverse
duties a broad range of expertise and experience.
The Federal Advisory Council, consisting of one representative from each District, meets quarterly with the Board
of Governors to discuss economic conditions. The Chicago
Reserve Bank's advisory councils on small business and
agriculture provide a vital communication link between
the Bank and these important economic sectors.

Stefan Anderson,

Schultz, and

Charlene

Thomas

BOARD

DIRECTORS

RESERVE

BANK

CHICAGO

Chairman

A r t h u r C. Martinez
Chairman

and

Chief Executive

Officer

Sears, Roebuck

and Co.

Hoffman

Estates,

Illinois

R o b e r t M. Healey
D o n a l d J. S c h n e i d e r

Member
Illinois State
Relations

President

Labor

Schneider

Board

Chicago,
Deputy

National,

Green Bay,

Illinois
Chairman

Managing

Partner

Washington,
&

President,

Chief Executive
The Grundy

Pittman

Inc.

Wisconsin

A r n o l d C. Schultz
Chairman,

L e s t e r H . M c K e e v e r , Jr.

Grundy

and

Officer

National

Center,

Bank

Iowa

McKeever

Chicago,

Illinois

A . C h a r l e n e Sullivan
Associate

Stefan S. A n d e r s o n
Chairman,

President,

and Chief Executive
First Merchants
Muncie,

Corporation

Indiana

President

Officer

Dorr's Pine Grove Farm Co.
Marcus,

Iowa

David W . Fox
Retired

Chairman

Chief Executive
The Northern
Chicago,

and
Officer

Trust

Illinois

Graduate

Corporation

School

Management

Purdue

University

West Lafayette,

and

Chief Executive

Professor

Management

Krannert
Officer

Thomas C. D o r r

Fox,

Dorr.

FEDERAL

right:

Sullivan, David

Indiana

1 9 9 6 Board of Directors,
William

Charles Allen, and Stephen

BOARD

DETROIT

DIRECTORS

ADVISORY
ON

BRANCH

COUNCIL

AGRICULTURE

Ray J. G r e e n
Jacksonville,

Indiana

National

Jefferson,

Florine Mark

Chief Executive
The WW
Farmington

Hills,

Greensburg,

Michigan

Milk

and

Graimark

Officer

Clinton,

Realty Advisors,

Detroit,

Inc.

Michigan

R i c h a r d M . Bell
President

Officer

The First National

Wisconsin

Fertilizer

Chemical

Association

and

Agri-Business

Chairman

Association

Chief Executive

Officer

Credit

Company

Dearborn,

Michigan

S t e p h e n R. P o l k
and

Chief Executive

Detroit,

Association

Business

Industry

James B e r n s t e i n

Lucius Murray,Jr.

Sioux City, Iowa

Detroit,

Member-at-Large

Booker T.Washington

Michigan
Business

Chamber

Illinois

Latin American

Commerce

Chamber

Commerce

Milwaukee,

Wisconsin

Independent

Business

P Eric T u r n e r
Association

Gas City,
Indiana

Indiana
Chamber

Commerce

Chicago,

Illinois

Member-at-Large

Mondovi,

Wisconsin

Farm Bureau

Crawfordsville,

Northbrook,

Sue Ling G i n
Association

G a r y Steiner

Indiana

E d u a r d o Salse

Indiana

Hispanic

Illinois

Illinois Corn Growers

David W . G o o d r i c h
Federation

Indianapolis,
National

Officer

Michigan

Iowa

Iowa Association
and

Michigan

of Wisconsin

Richard W a r d

R. L Polk & Co.

Association

Thomas Gearing

Iowa

Wapella,

Ford Motor

Chairman

Keystone,

Vic Riddle

and

Kendig K. K n e e n

Michigan

Iowa Pork Producers

W i l l i a m E. O d o m

Owners

Chapter

Ottumwa,

Indiana

T i m L. K a p u c i a n

Michigan

Business
Detroit

G a r y E. B a k e r

Indianapolis,

Michigan

Ann Arbor,

ofWomen
Greater

Michigan

Association

J o h n D. F o r s y t h

Hospitals

Hills,

Association

C h a r l e s J. G a r c i a
Bay City,

Director

BUSINESS

Association

D o n a l d W . Gillings

University of Michigan

Farmington

Ann Arbor,

Illinois

Illinois Beef

Michigan

COUNCIL

SMALL

Small Business

Bank

Rivers

Executive

Economics

Inc.

Wisconsin

Henry,

Chief Executive

Three Rivers,

W i l l i a m D. E n g e l b r e c h t

and

of Three

ADVISORY

Services

David D e L o n g

Chief Executive

Dealers

Linda M. Jolicoeur

Iowa
Involved in Farm

National

Indiana

Production

of Indiana,

C h a r l e s E. A l l e n
President

Ellsworth,

George Crosby

Inc.

Illinois

Automobile

P a t r i c i a M.Yungclas
Association

Women

Officer

Group,

Bell,
pictured).

Association

Iowa

Iowa Cattlemen's

and

right:

Richard

Polk (John Forsyth is not

Kaye W h i t e h e a d

Reginald J. C l a u s e

President

Branch, from left to

Muncie,

Member-at-Large
Chair

Detroit

Odom, Charles Weeks, Florine Mark,

of Independent

Indiana

Pork Producers

Indiana
Federation
Business

Association

Kam Washburn
C h a r l e s R. W e e k s

Elsie,

Chairman
Citizens
Flint,

Michigan

Michigan
Banking

Soybean

Association

Corporation

Michigan

O f f i c e r s

Federal Reserve Bank of Chicago Management
from left to right:
Michael

William

Moskow,

Gram, David

Charles

Committee,

Ritter, CarlVanderWilt,William

Furbee, William

George Coe, and David

Appointments to and promotions within the Federal
Reserve Bank's official staff are made by the Bank's
board of directors. The board appoints the Bank's president
(chief executive officer) and first vice president (chief
operating officer) to five-year terms subject to approval
by the Board of Governors.
The primary activities of the Chicago Reserve Bank
are divided into nine functional areas overseen by senior
vice presidents who report to the Bank's president and
first vice president. An additional function, the Auditing
Department, reports directly to the board of directors'
Audit Committee. The Bank's senior officers form the
Management Committee and determine the Chicago
Reserve Bank's strategic direction.

Hunter,John

Conrad, Richard Anstee, Nancy

Wixted,

Goodman,

Allardice.

D a n i e l G . Sullivan

Michael H. M o s k o w

Senior Economist

President

Assistant

William C. Conrad
First Vice

Vice

and

President

James T. M o s e r

President

Senior Research

Economist

and Research
CENTRAL

BANK
Paula R . W o r t h i n g t o n

ACTIVITIES
Economic
and

Research

Programs

Senior Vice President
of

Regional
and

M o n e t a r y Policy a n d
Financial M a r k e t s

Research

Elijah B r e w e r III

Assistant

Vice

Economist
Officer

Economic

Programs
G a r y L. B e n j a m i n

Research

Senior Economist

Senior Research
and Research

William C. Hunter

Director

Officer

Economic

Advisor

and Vice

President

R o b e r t H. Schnorbus
Senior Economist

and

President

Assistant

Vice

W i l l i a m A.Testa

D o u g l a s D. E v a n o f f

Senior Economist

Assistant

Vice

and

President

C h a r l e s L. Evans
Senior Economist
Assistant

Vice

and

President

Senior Economist
Vice

Vice

and

President

Philip R. I s r a i l e v i c h
Senior Regional

A n n e M a r i e L. G o n c z y

Assistant

and

President

and

and Research

Economist
Officer

Statistics
Jean L V a l e r i u s
Vice

President

President
Loretta C.Ardaugh

Kenneth N. Kuttner
Senior Economist
Assistant

Vice

and

President

Statistical

Reports

Officer

Supervision and Regulation
John J.Wixted.Jr.
Senior Vice

President

Regulation

Vice President
of

Regulation

President

Vice

President

Yvonne H. Montgomery
Vice

President

Sheryn E. Bormann
Vice

President

Maureen A. Cummings
Assistant

Vice

Jerome F.John

President

Assistant

Glen Brooks

Vice

President

James M. Rudny

President

William H.Lossie.Jr.

Assistant

Vice

Brian D. Egan

Operations

Assistant

Officer

Patrick A. Garrean

David R. Starin
Vice

Joseph R. O ' C o n n o r

Assistant

Ronald A. Rolighed

Indianapolis
Office
Donna M.Yates

Assistant

Vice

President

Officer

Assistant

Carl R. Quinn
Examining

John A.Valenti

Assistant

Support

and
Supervision

President

Geoffrey C. Rosean
Vice

President

A. Raymond Bacon
Assistant

Vice

President

Vice

President

Vice

President

Vice President
Associate

Vice

President

Stephen M. Pill
Vice

Assistant

George E. Coe

R. Steve Crain
Vice

Vice

and Assistant

Assistant

Vice

President
General

Vice

Auditor

Robert M. Casey

President

Assistant
Vice

President

Audit

President

General

Auditor

Joseph B. Green
Officer

Karen L. Rosenberg
W h o l e s a l e , Cash, Fiscal,
Facilities, and I n t e r s t a t e
Marketing

Assistant

Richard R Anstee

Assistant

Senior Vice

Vice President

Information

Security

and
Officer

Anthony J.Tempelman
Vice

President

S u p p o r t , Loans, and
Risk M a n a g e m e n t
Carl E.Vander W i l t
SeniorVice

President

Chief Financial

President

C o m m u n i t y and
I n f o r m a t i o n Services

Assistant

William A. Bonifield

Nancy M. Goodman

Ellen J. Bromagen

Kathleen E. Benson

Vice

Senior Vice

Accounting

Assistant

Guadalupe Garcia

Vice

President

Michael R.Jarrell

Assistant

Jerome D. Nicolas

Vice

President

Vice

Gay W. Whiting

Assistant

Lawrence J. Powaga

Vice

President

Vice

President

Charles A.Jeffrey

Assistant

Examining

C u s t o m e r Service

Officer

Vice

President

Jeffrey A.Jensen

Frank S. McKenna

Examining

Assistant

Officer

Vice

President

Facilities M a n a g e m e n t
Wayne R. Baxter
Vice

President

Assistant

Vice

President

Tyler K. Smith
Assistant

Vice

C o n s u m e r and
C o m m u n i t y Affairs
Alicia Williams
Vice

Assistant

Vice

President

G e n e r a l Services
Kristi L. Zimmermann
Assistant

Vice

A c c o u n t i n g Services

Officer

Loans and Risk Management
Gerard J. Nick
Vice

President

William J. O ' C o n n o r

President

John L. Bergstrom

President

Public Affairs
James R. Holland
Public Affairs

Kenneth R. Berg

President

and

Officer

Cash and Fiscal Services

President

Counsel

Office of t h e
General Auditor

Robert A. Bechaz
Vice

Counsel

Anna M.Voytovich

General

Assistant

President
General

Glenn C. Hansen

President

Thomas M. Matsumoto
Assistant

Counsel

President

Kathleen H.Williams

and

General

and Assistant

Automation Support

Assistant

Secretary

Elizabeth A. Knospe

SUPPORT F U N C T I O N S
A u t o m a t i o n and
C o m m u n i c a t i o n s Services

Assistant

President,

Counsel and

Legal Services

F.Alan Wells

Senior Vice

President

Yurii Skorin

Brenda D. Ladipo

William A. Barouski
Vice

Vice

SeniorVice
General

Retail P a y m e n t Services

Barbara D. Benson
Director

President

Officer

Supervision

Vice President

Vice

Peoria Facility
Mary H.Sherburne

Officer

Information

President

Milwaukee
Office
Angelina S. Chin

Philip G.Jackson
Applications

Vice

President

Vice

Legal D e p a r t m e n t and
Office of t h e S e c r e t a r y

President

Assistant

Vice

President

William H. Gram

Vice

Regional Offices

President

Assistant

President

Cynthia L. Rasche

Vice

Angela D. Robinson

Manager

Assistant

President

Valerie J.Van Meter

President

David R.AIIardice
Senior Vice

Anne M. Phillips

President

Vice

Richard F. Opalinski

Assistant

Vice

Thomas G. Ciesielski

President

Jeffrey S.Anderson
Vice

President

D e t r o i t Branch

Des Moines Office
L. Edward Ketchmark

Assistant

Vice

and Branch

President

David E. Ritter

H u m a n Resource Services

C h e c k Services

James W. Nelson
Vice

Retail Services

Assistant

and

Douglas J. Kasl
Vice

Culture Transformation

Senior Vice

David S. Epstein
Vice

W h o l e s a l e and
Interstate Marketing

Charles W. Furbee

James A. Bluemle
Director

SERVICES T O D E P O S I T O R Y
INSTITUTIONS

Officer

Assistant

Vice

President

Robert A. Lyon
Loans

Officer

M a n a g e m e n t Services
Margaret K. Koenigs
Assistant

Vice

President

Jeffrey B. Marcus
Assistant

Vice

President

HEAD

OFFICE

230 South LaSalle Street
P.O. Box 834
Chicago, Illinois 60690-0834
312-322-5322

DETROIT

BRANCH

160 West Fort Street
RO. Box 1059
Detroit, Michigan 48231-1059
313-961-6880
DES M O I N E S

OFFICE

616 Tenth Street
RO. Box 1903
Des Moines, Iowa 50306-1903
515-284-8800

INDIANAPOLIS

OFFICE

831 I N o r t h Perimeter Road
RO. Box 2020 B
Indianapolis, Indiana 46206-2020
3 17-244-7744
MILWAUKEE

OFFICE

FEDERAL RESERVE BANK
OF CHICAGO

304 East State Street
RO. Box 361
Milwaukee,Wisconsin 53201-0361
414-276-2323
PEORIA

FACILITY

6100 West Dirksen Parkway
P.O. Box 4318
Peoria, Illinois 61607-0318
309-633-5000

For additional

copies of this annual

report,

or for more

information

on the Bank's study of the Midwest Economy, contact the Public

Information

Center, Federal Reserve Bank of Chicago, at 312-322-5111,

or access

the Bank's web site at

http://www.frbchi.org.

Full text of Annual Report of the Federal Reserve Bank of Chicago : 1996 Annual Report : Can the Midwest Maintain Its Momentum?

FRASER