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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,