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Federal
Resetve
Bank
of Dallos

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

Federal Reserve Bank of Dallas

To the lVl'errrber Banks in the
Eleventh
Federal Reserve District:
The possibility suggesteda year ago-that 1975 could well turn out better than many
were expecting-has materialized. The economy appearsto be firmly launched on a sustainable
recovery and expansion. Inflation and unemployment have rec,eded.Nevertheless,American
concepts and institutions continue under pressure. The twin goals of domestic economic
policy-full employment and price stability-have not yet come within our grasp.
We continue to experience substantial inflation in the midst of large amounts of unused
labor and industrial resources.Large increasesin wage rates in the presenceof large numbers
of unemployed indicate that the price-making institutions and processesin the labor markets
are yielding results inconsistent with the overriding national economic goals. Similarly, and
not unrelated, price increaseson a number of industrial materials and products in the presence
of sizableamounts of unused capacity indicate some of our commodity markets are performing
in a comparable manner. Similar conditions may be observed in price changesfor a number
of services.
This tendency for prices to rise even in the midst of large amounts of unused resources
indicates not only strong monopolistic elements in a number of important markets but also
widespread and strong expectations that inflation will continue. Unfortunately, activities
are undertaken by both government and private groups to enable individual sectors to restrict
competition and raise or maintain prices. This contributes to both inflation and idle resources
and results in an economic structure heavily interlaced with price rigidities and price-increasing features. Moves to restructure laws, institutions, and practices that are inconsistent with
competitive markets and flexible prices should receive high priority in the nation's Bicentennial Year in order that the continuing pursuit of full employment and price stability may
succeed.
Financial institutions, especially in the Eleventh District, appear generally to be in a
position to provide the credit and other financial services needed by an expanding economy.
And the somewhat emotional wave of concern about prospective credit and capital shortages
has justifiably subsided. These favorable developments are related, of course, to the progress
in reducing inflation, and their continuance is heavily dependent on further progress on
the inflation front.
At this time, it appears that 1976 will be a good year for the District and District
banks. My associatesand I wish for you "continued progress in 1976" and thank you for
your cooperationand support in I975.

Sincerelyyours/

ERNESTT. BAUCHMAN
President

Directors
|anuary

l, 197 5

FEDERAL RESERVEBANK OF DALLAS
Lawrence

fohn
Charles

T. Beaird

Gene D. Adarrrs
Thornas W. Ilerrick
Gerald D. Hines
Frank |unell
Irving

Robert

A. lllathews
Stervart
Orton
H. Stewart, III

(Chairman and Federal ReserveAgent), Chairman of the Board, Dresser
I n d u s t r i e s ,I n c . , D a l l a s ,T e x a s
(Deputy Chairman), Charrman of the Board, Beaird-PoulanDivision, Emerson
Electric Co., Shreveport, Loursrana
President,The First National Bank of Seymour, Seymour, Texas
Cattle and Investments, Amarillo, Texas
Owner, Gerald D. Hines Interests, Houston, Texas
Chairman of the Board, The Central National Bank of San Angelo,
San Anqelo, Texas
Chairman of the Board and Chief Executive Officet, Frost Bros., Inc.,
San Antonio, Texas
President, Foley's, Division of FederatedDepartment Stores,Inc., Houston, Texas
Chairman of the Board, First International Bancshares,Inc., Dallas, Texas
EL PASO BRANCH

Reed H. Chittfun
Davis
|, Luther

Arnold

Gage Holland
C. ). Kelly
B. Peinado, fr.

Herbert
IV[. Schwartz
'Wayne
Stewart

President,First National Bank of Lea County, Hobbs, New Mexico
President and Chairman of the Board, Tucson Gas & Electric Company,
Tucson, Arizona
Owner, Gage Holland Ranch, Alpine, Texas
Chairman of the Board, The First National Bank of Midland, Midland, Texas
President, Peinado, Peinado & Navarro, Consulting Structural Engineers,
El Paso,Texas
President,Popular Dry Coods Co., lnc., El Paso,Texas
President, First National Bank in Alamogordo, Alamogordo, New Mexico
HOUSTON BRANCH

T. |. Barlow
Seth W. Dorbandt
Bookrnan
Peters
Nat S. Rogers
P. K. Stubbleffeld
Alvin
I. Thornas
Gene ll{. TVoodffn

President and Chief Executive OIicer, Anderson, Clayton & Co., Houston, Texas
Chairman of the Board and President, First National Bank in Conroe,
C o n r o e .T e x a s
President,The City National Bank of Bryan, Bryan, Texas
President, First City National Bank of Houston, Houston, Texas
President,Victoria Bank & Trust Company, Victoria, Texas
President, Prairie View A&M University, Prairie View, Texas
Chairman of the Board, President,and Chief Executive Offrcer, Marathon
Manufacturing Company, Houston, Texas
SAN ANTONIO BRANCH

lVlarshall
Richard

Margaret

Boykin
III
W' Calvert
Iohn H. Holcornb
Ben R. Low
Pete lVlorales, Ir.
Leon Stone
Scarbrough
VYilson

Senior Partner, Wood, Boykin & Wolter, Lawyers, Corpus Christi, Texas
President,National Bank of Commerce of San Antonio, San Antonio, Texas
Owner-Manager, ProgresoHaciendas Company, Progreso,Texas
President,First National Bank of Kerrville, Kerrville, Texas
President and General Manager, Morales Feed Lots, Inc., Devine, Texas
President,The Austin National Bank, Austin, Texas
Chairman of the Board and Chief Executive Officer, ScarbroughsStores,
Austin, Texas
FEDERAL ADViSORY COUNCIL MEMBER

Ben F, Love

Chairman of the Board and Chief Executive Officer, Texas Commerce Bank,
National Association, Houston, Texas

Officers
fanu,aryl, 1975

FEDERALRESERVE
BANK OF DALTAS
Ernest T. Bauehman
T. W. Plant
Robert H. Boykin
farnee L. Cauthen
Tony I. Salvaggio
Robert A. Brown
Ioseph E. Burns
George C. Cochran, III
Leon T[. Cowan
Ralph T. Green
C. f. Pickering
Carl H. lVloore
W. M. Pritchett
Fredric W' Reed
IIarry E. Robinson, fr.
George F. Rudy
Rasco R. Story
Thorrras R. Sullivan
E. W. Vorlop, fr.
Sidney f. Alexander, fr.
|. A. Clymer
Richard D. Ingrarn
'Williarr
H. Kelly
Larry |. Reck
Neil B. Ryan
fesse D. Sanders
Robert Smi16, 111
T. E. Spreng
E, A. Thaxton, fr.
C. L. Vick
|ohn C. Blake
Adrian W. Throop
Carla lYI. Warberg
Carroll D. Blake
Thornas H. Rust
Salruny T. Schulze
Millard E. Sweatt, Ir.

President
First Vice President
Senior Vice President
Senior Vice President
Senior Vice President
General Auditor
Vice President
Vice President
Vice President
Vice President and Senior Economic Adviser
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President and General Counsel
Vice President
Vice President
Vice President and Controller
Assistant Vice President
Assistant Vice President
Assistant Vice President and Assistant Secretary
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President and Secretary
Assistant Vice President
Assistant Vice President
Assistant Vice President
Chief Examiner
Research Officer
ResearchOfficer
Bank Relations Officer and Assistant Secretary
Personnel Officer
Assistant General Auditor
Assistant Counsel
EL PASO BRANCH

Fredric YV,Reed
For:rest E. Colernan
Ioel L. Koonce, fr.

Vice President in Charge
Assistant Vice President
Operations Officer
HOUSTON BRANCH

)ames L. Cauthen
Rasco R. Story
I. Z. Rowe
Vernon L. B4.rtee
Sarnrnie C. Clay

Senior Vice President in Charge
Vice President
Assistant Vice President
Operations Officer
Operations Officer
SAN ANTONIO

Cad H. lVloore
Thornas H. Robertsorr
Thomae C. Cole
Robert TV. Schultz

BRANCH

Vice President in Charge
Assistant Vice President
Operations Officer
Operations Officer

Staternent

of Condition
Dec.31-,1975

Dec.31,1974

8 422,062,397
19,000,000
110,300,237
L6,053,214

$ 571,896,t74
14,000,000
91,552,993
11,290,277

ASSETS
Cold certificate account
SpecialDrawing Rights certificate account.
FederalReservenotes of other Banks
Other cash
Loansand securities:
Loans .
Federal agency obligations
U.S. Covernment securities . .
Total loans and securities. . .
Cash items in processof collection
Bankpremises....
Operating equipment
Other assets.
TOTAL ASSETS.

200,000
310412,000
4,433,099,000
4,743,711,000
835,120,797
11,761,334
2,234,394
66,719,535
$6,226,962,888

{iI4Tp2,srz

$3,00r711"816

$2,707
,174,505

23,100,000
213,143,000
3,628,948,000
3,865,191,000
536,429,457
11,857
,825
44,799,947

LTABILITIES
FederalReservenotes in actual circulation.
Deposits:
Member bank-reserve accounts
U.S. Treasury-general account
Foreign
Other .
Totaldeposits....
Deferred availability cash items
Otherliabilities...
Interdistrict settlemenr accounr
TOTAL LIABILITIES
CAPITAL

1,666,305,414
389,303,570
14,443,000
61,759,282
2,131,811,266
565,E39,777
51,260,0[L
364,544,485
6,123,167,388

1,744,688,075
105,184,903
15,950,000
29,973,725
| ,895,796,704
498,r0r,352
47,635,602
5,148,709,r73

ACCOUNTS

Capital paid in.

Surplus
TOTAL CAPITALACCOUNTS
TOTAL LIABILITIESAND CAPITALACCOUNTS

51,897,75O
51,897,750
103,795,500
$6,226,962,888

49,159,250
49,159,250
98,318,500
$5,247,027,573

Earnirags and hrpenses
r975
CURRENT

EARNINGS

Loans .
U.S. Government securities . .
Foreign currencies
All other
TOTAL CURRENT EARNINCS
CURRENT

518,909
295,895,909
300,698
38,096
2r6J53,6l.2

$

$ 7,493,763
265,390,908
375,t17
t24,090
273,383,868

EXPENSES

Current operating expenses.
Assessmentfor expensesof Board of Governors . . . .
FederalReservecurrency:
Original cost, including shipping charges
Cost of redemption, including shipping charges
Total .
Lessreimbursement for certain fiscal agency and other expenses. . . . .
NETEXPENSES...
PROFIT

r974

AND

27,67!,218
1,946,600

25,837
,157
2,244,000

l,5g'-,7L2
37,325
31,146,855
1,569,64O

r,426,390
42,808
29,550,355

267,176,397

245,215,722

--Efr7fr

1,382,209
28,168,146

LOSS

Current net earnings
Additions to current net earnings:
Profit on salesof U.S. Covernment securities(net)

"ttt"il,i'"uoiii"",
... : :............... . . .. .......: ... .
Deductions from current net earnings:
Losson salesof U.S. Government securities(net)
All other
Total deductions .
Net additions or deductions (-)
Net earningsbefore dividends and payments to U.S. Treasury.
Dividends paid . .
Paymentsto U.S. Treasury (interest on F.R.notes)
Transferred to surplus
Surplus,fanuaryl....
Surplus, December 31. . . .

r;/31p21
182,844
1,9L6,865

13,377,866
l33r?,s66
-11,461,001
255,715,396
3,029,166
249,948,730
2,739,500
49,159,250

$_9lg2zlq

95,935
96,935
l,g4z,g38
2,030,752
3,873,690
-3,776,755
24r,438,967
2,851,470
235,544,447
3,043,050
46,116,200
$ 49,159,250

Volrrrne of Operations
Federal ReserveBank of Dallas
Head Office and BranchesCombined
Number of PiecesHandledl

Dollar Amount

r974
6,435,710,744
2,462,883,140
76,927,884

Loans.
Currency received and counted.
Coin received and counted.

1975
100
292,661,3O7
672;/28,036

1974
l,3gg
274,046,247
544,944,954

1975
444,841,000
2J92,896J30
96,629,681

Checks handled:
U.S. Covernment checks
Postal money orders
All other2

54,989,981
tL,447,592
684,189,694

45,737,654
1t,t94,241
649,49r,r04

20,480,845,942
465,9\5,531
254,294,L32,860

16,853,950,7
60
4t2,3r7,507
240,200,922,222

240,058
492,361

147,535,213
301,513,428

t52,026,335
359,9r3,s22

63,685,106,110
t,693,936J00,560
575,05r,952

28,694,989,r47
r ,527,020,506,556
499,44s,468

Collection items handled:
U.S. Government coupons paid. . . . .
All other
Issues,redemptions, and exchanges
o f U . S . G o v e r n m e n ts e c u r i t i e s .
Transfers of funds
Food stamps redeemed

236,359
240,062

12,141,570
1,109,590
160,021,126

lPackageditems handled as a single item are counted as one piece.
2Exclusive of checks drawn on the F.R. Banks.

t2,s23,406
868,323
l 78
200,508,