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Bonk
Fedelol RcsQntQ
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1977
ANNUALREPORT
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
Confenfs
lntroduction 4
Services*Whot'sAvoilobleto You
Check Processing 3
Currencyond Coin 6
WireTronsfer 9
FiscolAgent '10
Loons 1l
Supervision
ond Regulotion ti2
Other Seruices ,13
Membership t 4
Boordof Directors .16
Chongesin Directors 19
Directors 20
Officers 22
Stotementof Condition 24
Eornings
ond Expenses25
Volumeof Operotions 25
DistrictMop 2E
ErnestT.Boughmon,President,FederolReserve
Bonk of Dollos
lrving A. Mothews, Choirmon of the Boord,
FederolReserveBonk of Dollos
Io Bonksin fhe EleventhFcderol
RescrveDislfict:
In discussionslost summer between the
Committee on Membership of the Boord of
Directorsof the Federol ReserveBonk of Dqllos
ond representotives
of bonking ossociotionsin
Texos,Oklohomo, Louisiono,ond New Mexico.
I become owore thot we hod not done on
odequote job of fomiliorizingbqnkers in the
Districtwith some of our services.Fronkly,thot
surprisedme. I thought bonkersknew qll obout
the Federol Reserve.But upon checking into
the motter, I found mony bonkers thot were
not knowledgeoble obout the Fed'sseosonol
loon progrom, its sofekeeping services, ond
even its check collection services.to nome o
few.
This reporl is on otlempt to more fully
inform bonkers obout FederolReserveservices.
I urge you to reod it. The report moy iell you
more thon you wont to know obout the Federol
Reservein the Eleventh District.On the other
hond, it moy touch only lightly on something
thot is interesting or useful to you. lf you hove
questionsofter reoding this report, write or coll
me. Better yet. invife me to your bonk or community to give o public occounting on the
FederolReserve,l'll welcome the opportunity.
Sincerelyyours,
T. BAUGHMAN
ERNEST
Presidenf
Servic?sWhql'sAvoiloble
lo You
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CheckProcessing
Americonswrile35 billioncheckso
yeor,ond il is onticipotedlhot fhis
numberwill double by 1986.
Almost 800 million checks were processed in the Eleventh
Districtduring 1977.
One responsibilitygiven the Federol
Reserve System when it wos first estoblished
in 1913wos to improve the collection of
checks. Much progresshos been mode in this
oreo through the joint efforts of the commerciol bonks ond the Federol Reserve.Check
collection remoinso high priorityservice.Lost
yeor, olmost S14 million wos spent on check
collection in the Eleventh District,which wos
obout 45 percent of our totol operoting
expenses.
During 1977, we processed olmost 800
millionchecks-on increoseof obout 8 percent
over 1976.On overoge,we processdoily obout
950,000city checks, '1,700,000
RCPC checks,
ond 550.000checks drown on bonks outside
the Disirict.Thisvolume requiresmore thon 250
employees working on o 24-hour bosis, on
impressiveorroy of speciolized electronic
mochinery, ond controcts with tronsportotion
componies linkingus to the 1,537bonks in the
District os well os to the other 36 Federol
Reserveofficesthroughout the Notion.
At no chorge, o member bonk moy
deposit checks poyoble outside its city directly
with its Federol ReserveBonk or Bronch. The
FederolReserveprocessesthe checks, presents
them for collection. ond credits the proceeds
to the member's reserveoccount.
Most checks ore collected "overnight,"
ond the proceeds ore ovoiloble the doy ofter
deposit,Other checks are "some doy" or "lwo
doy" items.Fundsovoilobilityvories,of course,
with the locotion of the bonk on which o check
is drown.
Unfortunotely,not oll checks ore poid
upon presentmeni.An essentiolfeotureof the
Fed'scheck cleoring system is returning these
unpoid cosh items quickly. This is especiolly
importont in the EleventhDistrictsince unpoid
Linkinglhe 33 oulomoled
cleoilnghousesoperoted by the
FederolReserveinlo o nolionwide
syslemhos been proposed by the
Boord of Governors.Conceming lhe
proposol,the Boordsoid "We hope lo
encouroge lhe use of eleclronic fund
fronsfersos o more efficienlond less
costlyollernolivelo check
poymenls."
checks ore more numerous in the Southwest
thon in most regions of the country. A doily
overoge of 52,000items wos returned unpoid
to Federol Reserveoffices in this District in
1977-up 13 percent trom 1976.Since returned
itemsrequirespeciol hondling, eoch one costs
os much os hondling obout five regulor
checks.
The totol number of checks written
increosesevery yeor ond if the recent onnuol
growth rote continues, the number will double
by 1986.This prospect provides o continuing
chollenge to both the Federol Reserve qnd
commerciol bonks. We ore constontly on the
olert for new technology ond procedures to
expedite check collection ond reduce costs.
As we see it, there ore two woys to
improve the poyments mechonism-one,
develop more efficientwoys to hondle checks.
ond two, develop more convenient ond
cheoper woys to moke poyments. We ore
working on ospects of both opprooches,
One improvement wos the estoblishment
of RegionolCheck ProcessingCenters(RCPC).
Wifh the cooperotion of commerciol bonks.we
orgonized the first RCPCin the Districtin 1972.
RCPC zones hove been exponded ond now
include oreqs opproximotely150milesoround
Dollos ond 100 miles oround Son Antonio. All
of the Houston tenitory outside HorrisCounty
is served by RCPC.TheseRCPCfocilities hove
greotly increosed our obility to collect checks
overnight.
Another improvement wos the estoblishment of the North LouisionoSettlement Center
in 1976.Under this orrongement, two bonks in
Shreveport ond two bonks in Monroe receive
ond process items drown on Eleventh District
Louisionobonks in much the some woy os the
4
Federol Reserve does. Tronsportotion time is
reduced considerobly, ond overnight credit is
gronted to Eleventh District Louisionq bonks
porticipoting in this progrom. A similor orrongement is under considerotionfor bonks in
West Texos.
Another chonge in 1977 of porticulor
interest to smoll bonks wos on increose in the
overqge number of unsorted cosh items
ollowed in mixed cosh letters. One-doy credit
is gronted to member bonks thot hove o doi[
overoge of no more thon 5,000 itemsincreosed from 2,0OO-excludingfood stomps
ond checks pqyoble in the some town os the
sending bonk.
We olso see opportunities for cost sovings
ond better poyments service through greoter
use of electronic poyments. Federol Reserve
Bonks hove been tronsferringfunds electronicolly for more thon 50 yeors. In the District,the
Federol Reserve Bonk hos cooperqted with
commerciol bonks in recent yeors to estoblish
the SouthWesternAutomoted Cleoring House
Associotion,ond os ogent for the Associotion,
processesond collects the ACH items. During
1977, o monthly overoge of obout 600,000
electronic imoges representing o totol of over
5200 million were processed in the Eleventh
District. Approximotely 90 percent of this
volume wos government poyments, ond this
volume is expected to increose. The volume
of privote poyments is olso expected to
increose ropidly os notionwide service
becomes ovoiloble. The Boord of Governors
of the Federol Reserve System hos proposed
the linkoge of outomoted cleoringhousesinto
a notionwide system. Currently, locol
cleoringhouse ossociotions cleor ond settle
electronic poyments within their respective
An overoge of 2 million checks ore processed doily
on mochines like this one ot the Heod Office.
regions. Under the proposol, ACH tronsfers
could be mode notionwide.As o result,direct
deposit of poyrolls,utilizing ACH focilities, is
expected to develop ropidly, os ore o number
of other types of poyments.
lmproving Treosurycheck processing is
onother oreo of innovotion. Since June 1976.
the Federol ReserveBonk of Dollos hos been
pilot testing o Treosurycheck truncotion
progrom. Treosurychecks ore "truncoted" in
the sensethot the poid checks ore no longer
delivered bock to the Treosurv.Insteod, check
informotionis recorded on mognetic topes
ond microfilmwhich ore sent to the Treosury
storoge,ond retrievol.Themojor
forprocessing,
odvontogesof the truncotionprogromwhen
implementednotionwidein 1978will be o
expense,occelerotionof
reductionin Treosury
Treosurycheck processing,ond much foster
responseon odjustments,lt isthislotterfeoture
thot will be noticedby commerciolbonks,
In the longer term, the Treosurycheck
truncotionprogromcould hove importont
for commerciolbonking.Truncoimplicotions
tion of commerciolbonk checksmoy become
feosible,ond the Systemiscurrentlycooperoting with the AmericonBonkersAssociotionin
o studyof thisisue.
Thisdiscussionof our check collection
serviceond someof the recentond proposed
chongesnecessorily
hosbeen sketchy,We ore
owore thot the operoting circulorswhich
describethe servicein detoil ore numerous,
technicol,ond sometimesdifficultto interpret,
Therefore,we ore working on o simplified
stotementof policiesond procticesoffecting
the collectionof checks,which will be ovoiloble in mid-1978,
Currencyond Coin
lssuonceof lhe $2 billwos designed
lo sove lhe FederqlReserveSyslem
oboul $27millionond lhe Treosury
neorly $8 million during the firstfive
yeorsof use.
Neorly oll member bonks obtoin their
suppliesof cunency ond coin from the Federol
Reserve,ond hence, ore fomilior with this service, Cunency ond coin is provided without
chorge to member bonks ond of cost to nonmembers. Bonkersploce their orders either by
phone or moil, Deliveriesond return currency
shipmentsore scheduled giving considerotion
to bonks' needs ond distonce from o Federol
Reserveoffice. City bonks ore served twice o
week qnd country bonks once o week or once
every two weeks. Speciol service con be
orronged to meet unusuolneeds,
Lostyeor, we shipped $3.76billionof currency ond coin to bonks-on increose of 10
percent over 1976-in 388,000shipments, The
number of incoming shipments wos much
6
TheREIhigh-speedcunency-processor
counts,
sorts,ond verifiescurency.
l n 1 9 7 7 , 3 7 0m i l l i o n b i l l s ,t o t o l i n g o b o u t $ 3 , 5 b i l l i o n .w e r e
counted ond sorted in the Eleventh District,
smoller-49,000-butthe dollor volumewos
neorlyos lorge-$3.65billion.
All incomingcurrencyond coin isverified
ond sorted,Fitcurrencyis pockoged for recirculotion,ond unfitcurrencyisdestroyed.
ln 1977
, the DollosBonkond itsBronches
sortedond counted obout 370 millionbills,
totoling obout $3.5billion;obout 900 million
coins,totolingobout S110million.Thevolume
of cunency procesed increosed5 percent
over 1976,ond the volume of coin processeo
increosedolmost9 percent,
The Cosh Deportmentsot the Federol
Reserveofficesin the Districtemployedobout
100 people lost yeor, High securityhondling
of currencyond coin involvescostsfor voults,
securitypersonnel,ond ormoredcorriers.The
expenditures
in the cosh operotion,including
purchoseof new currencyond coin, were
o l m o s t 5 6 , 3m i l l i o no r 1 8 p e r c e n t o f t o t o l
operotingexpenses.
Counting,sorting,ond pockoging currencyond coin hosolwoysbeen o lobor intensiveoperotion,but thisisnowchonging,Neorly
15 yeorsogo, the FederolReserveSystem
begon studyingthe posibilityof fullymechonizingcurrencyprocessing.
About five yeors
ogo. the relevonttechnologybecome ovoiloble ond potentiolly cost effective. Development controcts were negotioted with o
number of monufocturingfirms,ond subse-
quently, testing begon on some high-speed
currency processors.The Fed wonts o mochine
thotwill quickly ond efficientlycount, sort,ond
verifycunency, then pockoge the fit ond destroy the unfit cunency. Oiher high prioritygools
ore increosed security ond reduced costs. ln
November 1975,RecognitionEquipment,Inc.,
instolled o prototype REIMork ll high-speed
currency-hondlingmochine in the Cosh
Deportment of the Dollos Reserve Bonk for
testing ond furtherdevelopment. Mochinesof
other monufocturersqre in development ond
being tested of other ReserveBonks.
The REImochine is o foscinoting product
of modern technology, lt "tokes in" notes ot
o rote up to 50,000per hour, ond os it propels
them olong o trock, eoch note iscounted ond
checked for volidity, fitness,ond denominotion. The fit notes ore stropped in 100-note
pockoges for recirculotion,ond the unfit notes
ore shredded ond sold os woste. Counterfeits
ore detected ond turned over to the Secret
Service.Any notesthe mochine connot "reod"
ore rejected ond processed by hond, And
through oll this, detoiled records ore generoted so eoch bonk's deposit is verified ond
ouditors ond exominers con follow every step
of the troil.
One benefit of the new high-speed currency processorwillbe better ond more consistent quolity of recirculoted currency. You moy
hove noticed some deteriorotionin the quolity
of currency we hove shipped in post months.
Thisis becouse we hove been counting some
currency of smoll denominotions with new
medium-speedprocesson,which permit some
worn or dirty billsto be returnedto circulotion,
As the ReserveBonksshift currency processing
to the new high-speedmochines,thisproblem
shouldbe eliminoted.
A lorge port of the expense of mointoining currency quolity relotes to the 51 bill. lts
overoge life ofter being put in circulotion is
obout 18 months.Neorly3 billion Si billsore
in circulotion,which representsobout 50 percent of totol currency in circulotion. Printing,
shipping, ond processingso mony $1 bills is
exoensive for the Federol Reserve ond the
Treosury.
lt costsobout 518to produce o thousond bills, regordlessof denominotion. In on
effort to reduce expenses,o 52 bill wos introduced in 1975.Replocing$1 billswith $2 bills
wos estimoted to sove the government obout
S35 million over the first five yeors. However,
the 52 bill hos not goined occeptonce omong
bonkersor their customers.qnd most of them
sit idle in our voults.
Another proposol to reduce expenses
ossociotedwith the S1 bill is to ploce o smoll
51 coin in circulotion.This hos been under
considerotionfor some time. Sincecoins rorely
weor out. it would be lessexpensivein the long
run if o coin were to disploce the S'1bill.
ln order to reduce tronsportotion
expenses,we hove encouroged coin swopping between member bonkswithin the some
city in some oreos. The locol tronsportotion
costs ore poid by the Federol Reserve Bonk
to ovoid shippingexpenseto ond from Federol
Reserveoffices,Coin swopping onongements
between member bonks ore now in effect in
Lubbock, Wichito Folls, Shreveport, Son
Angelo, FortWorth.Abilene, ond Arlington,
WireTronsfer
Thedollor volume of wire lronsfersof
funds in lhe EleventhDistilctlost yeor
wos olmost$2.5lrillion.
Member bonks moy tronsfer funds quickly from one port of
the country to onother on the Federol ReserveWire System.
Utilizingthe Federol ReserveCommunicotions System,o member bonk moy tronsfer
funds from its reserve occount to onother
member bonk onyalhere in the country in o
motter of minutes.ln 1977in the EleventhDistricl, 1,734,781tronsferswere mode involving
olmostS2,5trillion.
Tronsfersore initioted by o telephone coll
to our wire tronsfersection.Thereis no chorge
for tronsfersof 51,000or more. A number of
lorger bonks in the Districthove instolledonline terminolswhich enoble them to send ond
receive funds more expeditiously.The Federol
Reservepoys circuit ond line costsfor on-line
terminols.Tronsfers
initioted on such terminols
flow through the Federol Reservecomputers.
ond oppropriote occounting entriesore mqde
without ony "honds on" oction by our stoff.
On-line bonks hove the odvontoge of receiving immediote odvice of oll incoming tronsfers.
Thirty-fivebonks ore now on-line with the
Federol Reservewire tronsfer system in the
Eleventh District,ond more bonks ore being
odded.
Bonks moy olso use the Federol Reserve
Communicotions System to tronsfer U.S.
Government ond government ogency securities, CurrentlV,16 bonks in the Districthove
securitiestronsfer copobility in their on-line
linkup with the Federol Reservecommunicotions network. ln 1977, 45,460wire tronsfersof
securitiesomounting to over S'125billion were
mode through Federol Reserveoffices in the
EleventhDistrict,
A plon to improve wire tronsfersof funds
omong bonks hos been proposed by the
Federol ReserveBoord. Under the proposol,
member bonks could use their reserve
occounts to settle wire tronsfersconducted on
BonkWire.BonkWireis o communicotionsnetwork owned by on qssociotion of commerciol
bonks which provides interbonk doto communicotion servicesbetween obout 200 bonks
throughout the couniry.
FiscolAgent
TheFederqlReserveSystemhos
responsibilifyto provide o number of
finonciol services.Someof lhese ore
in oreoswherethe Congresswonled
improvemenlsol lhe lirne il wos
consideringfhe FederolReserveAcl
qnd some resullfrom lhe Federol
Reserye'srole os fiscol ogent of the
U.S.Government.
Federol Reserve Bonks provide sofekeeping focilifies
for the securitiesof member bonks.
The Federol Reserveis fiscol ogent for the
U.S.Treosuryond os such, servicesthe public
debt ond mointoins on effective morket in
Treosurysecurities, In performing these functions for the Treosury,the Fed olso provides
cedoin servicesto member bonks, including
sofekeeping ond the purchose ond sole of
securities,
Member bonks outside Federol Reserve
cities moy sofekeep their securities of their
Federol Reserve Bqnk or Bronch without
chorge. Procticolly ony type of security.
including those of the Treosury,government
ogencies, ond municipolities,moy be held in
sofekeeping ond serviced by our Securities
Deportment. Interestis collected ond credited
to the owning bonk's reserve occount. An
"Automotic Credit Plon" went into effect in
April1977for bonks thot keep municipol bonds
10
in our voults.Underthe plon, interestiscredited
to the owning bonk occording to on ovoilobility schedule rother thon upon octuol receipt
of the interest by the Federol Reserve. The
owning bonk receivescredit in one doy if coupons ore poyoble in Dollos ond in two doya
if poyoble outside of Dollos,
Securities kept in our sofekeeping ore
reodily ovoiloble to colloterolize TreosuryTox
ond Loon occounts or loons from the discount
window, ond for sole, exchonge, tronsfer, or
redemption os desired.
Upon the request of o member bonk, the
Federol Reserve will purchose or sell U.S.
Government or government ogency securities.
Severolcompetitive bids ore obtoined ond the
most fovoroble price ovoiloble in the morket
is executed.
Loons
Loon policies ond proceduresol
FederolReserveBqnkshove been
updoted ond slreomlined.
lmpressionshonded down from
someone'sexperience50, 20,ot even
'10yeorsogo moy no longer be
relevonl.
The most importont responsibilitygiven to
the Federol Reserveof the time it wos orgonized wos the discounting of commerciol poper.
It wos through this process ihot the Federol
Reservewos to provide on elostic currency for
the country. The discount function, originolly
conceived to be the heort of monetory policy,
hos long since been substontiollydisploced in
this role by Federol Reserve open morket
operotions-the purchose ond sole of government securitiesin the open morket, Nonetheless,the discount function is still importqnt to
member bonks becouse it ossures them of
occess to credit inespective of generol credit
conditions.
ln 1977,58member bonks in the Eleventh
Districi received 476 odvonces from the
Federol Reservefor o totol omount of obout
$4.2billion.Thesenumbersincreosedsubstontiolly over 1976,but were still smoll, reflecting
the generollyeosy credit conditions.
Priorto 1973, relotively short-term odjustment credit wos the only type of credit, besides
emergencycredit, regulorlyovoiloble from the
FederqlReserve.In April 1973,o seosonqlcredit
progrom wos initioted, ond it wos liberolized
in 1976to enoble more bonks to quolify.
ln 1977,obout 70 percent of the member
bonks in the EleventhDistrictwere eligible for
the seosonol credit progrom. However, few
bonks used it, reflecting in port the generolly
eosy credit conditions of lost yeor. In view of
the cunent low levelsof groin ond cottle prices,
risingogriculturqlcosts,ond the relotivelyhigh
volume of ogriculturolloqns in some oreos of
the District, the demond for seosonol credit
in 1978is expected to increose.
Seosonolcredit is ovoiloble for extended
periods to member bonks thot experience
Our loon deportment mode loons totqling 54.2
billion to member bonks in the EleventhDistrict,
onnuol recurring needs for funds obout the
some time eoch yeor. lt is porliculorly useful
for smoll bonks in rurol,ogriculturoloreos.Seosonol credit con help o bonk provide odequote yeor-roundliquidityfor itscommunity by
moking it eosierto cope with strong seosonol
pressures.
Adjustmentcredit is ovoiloble to o member bonk to meet temporory requirementsfor
funds or to cushion more persistent outflows
of funds during on orderly odjustment of the
bonk'sossetsond liobilities.Besidesodjustment
ond seosonol credit, two other types of credit
ore ovoiloble to member bonks under unusuol
circumstoncesreloting to eifher o porticulor
bonk or oreo.
The low requiresthot oll loons be colloterolized ond thot loons beoring the regulor
discount rote be secured by U,S.Government
orfederol ogency obligotions,or eligible commerciol or ogriculturolpoper. Other colloterol
which is occeptoble to o Reserve Bonk moy
be used to secure loons but of o rote of leost
one.holf of 1 percent obove the bosic discount
rote. The Federol Reservehos proposed to the
Congressthot this penolty rote be eliminoted
ond thot oll colloterolocceotoble to o Federol
ReserveBonk incur the some discountrote.This
would furthersimplifyour loon procedures.
11
Supervision
ond Rcaulotion
TheFederolReserveBonkof Dollos
hos lhe responsibilityof supervising32
multibonkond 68 one-bonkholding
componies in the ElevenlhDishict.
lmprovement of the supervisionof bonking wos one of the responsibilities
ossignedto
the Federol Reservewhen it wos orgonized.
S i g n i f i c o n tc h o n g e s o r e c o n t i n u o l l y b e i n g
mode in this oreo. We ore ottempting to provide highlyquolified exominers,to explorenew
exominotion ond monitoring techniques.ond
to schedule concurrentlythe principol on-site
exominotion ond the voriousspeciol-purpose
exominotionswhich ore now required.
Over the yeors,the Congresshos possed
o greot deol of legislotionoffecting bonks.ond
responsibility
for interpretingond implementing
much of it hos been given to the Federol
Reserve.ln recent yeors, the Fed hos been
given responsibility
to write regulotionsiinplementing o number of the consumerprotection
lows.Reflectingthe complexityof ihe underlying lows, the diversityof interestsoffected,
ond the lorge number of credit octivities
involved,these regulotionshove been odmittedly complex. To help bonks comply with the
regulotionsond to inform consumersof their
legol rights, o Consumer Affoirs Section hos
been orgonizedin our Bonk Supervision
ond
RegulotionsDeportment.
TheConsumerAffoirsstoffconducts seminors for bonkers throughout the District,provides speokerson the voriousconsumer regulqtions.onswersinquiries.provides interpretotions, ond visitswith member bonks to discuss
complionce proceduresrequiredby consumer
regulotions.
Much interest hos olso been exhibited
during recent yeors in one-bonk holding
componies.The Congresshos ossignedto the
Federol Reservethe responsibilityof odminis12
tering the Bonk Holding Compony Act of 1956.
Deportment
Our HoldingComponySupervision
isresponsiblefor the processingof opplicotions
under the Act. for the supervisionond inspection of bonk holding componies,ond for other
octivitiesreloted to this growing trend in bonk
ownershipin the EleventhDistrict.
Lows ond regulotions ore constontly
evolving with chonging circumstoncesso on
ongoing opportunity ond need existio eliminote the obsolete,to simplifythe complex, to
imorove weoknesses,ond to reduce odministrotive ond comolionce burdens. In this respect. bonkershove o responsibilify
to coll our
ottention to problem oreos in the lows ond
regulotions.Especiollyusefulore specific suggestions for chonges thot would moke the
regulotionsmore undersiondoble.ond hence,
more monogeoble to the regulotors,the reguloted. ond the public,
OtherServices
"FunclionolCosl Anolysisis one of
the bestlhings lhe Fedever did; I
wouldn'l be wilhoulil."
GeneAdoms
Presidentof lhe Firsl
NotionolBonk
of Seymour
Direclorof Federol
ReserveBonkof Dollos
Effective,profitoble bonking requireson
oworeness of the costs, revenues, ond profits
of eoch bonking service.Mony bonkersdo not
hove this informotion reodily ovoiloble, ond
even if they hod it for their own bonk, they
would not hove performonce yordstickswith
which to compore it.
Since 1966,the Federol ReserveBonk of
Dolloshos provided o FunctionolCost Anolysis
(FCA)Progromfor member bonks.FCAprovides
o comporotive onolysisof profitobilityond cost
effectivenessof 12 mojor bonking octivities,
To porticipote, bonks submit cost,
volume, ond income doto covering the yeor's
octivities.Much of the reouired informotionis
ovoiloble from regulor bonk reports.
After the doto ore processed of the
FederolReserveBonk,eoch porticipotingbonk
receives its individuol report contoining
detoiled cost figures for eoch of its bonking
functions, Comporisons ore mode with the
preceding yeor ond with bonks of similorsize
ond deposit structure. Breok-even onolyses
ond personnel efficiency meosuresore olso
included in the reports.
Informotion from porticipoting bonks is
received of the FederolReserveBonk in Februory; individuolbonk reportsore produced ond
sent to porticipoting bonks in April. Federol
Reservetechnicol onolysts ore ovoiloble to
ossistmember bonks in interpretingthe results
for their bonk. lt is expected thot in 1977,
opproximotely75 bonks in the EleventhDistrici
porticipoted in the progrom.
TheFederolReserveBonkolso undertokes
economic reseorch ond public informotion
octivities.Our ReseorchDeportment regulorly
collects bonking, business,ond ogriculturol
doto on the Southwest.Much of this is publishedregulorly,ond most of thot which is not,
is ovoiloble to bonkersond otherson request.
TheBonk'smonogement ond professionol
stoff is ovoiloble to soeok on economic ond
bonking subjects of bonking ond civic functions.
In subject oreos where we hove expertise,
we con ossistwith seminorsor workshopsto
serve informotionol needs ond interestsof
bonkersond othersin the District,
In Pcrspecfive
T h e d e m o n d f o r f i n o n c i o l s e r v i c e sw i l l
continue to expond. In this respect, finonciol
instituiionsin the Districthove shown o commendoble copocity to odjust to chonging
needs ond opportunities.Furtherodoptotion
will be colled for if economic opportunitiesore
t o b e r e o l i z e df u l l y . l t w i l l b e t h e o n g o i n g
responsibility of the Federol Reserve System
ond the Federol Reserve Bonk of Dollos to
provide olong with sound monetory policy,
f inonciol ond regulotoryservicesthot will focilitote ochievement of the country's brood
economic gools - full employment, price
stobility, ond bolonce in internotionql poyments, Your odvice ond support in these
undertokingsin 1977 hos been much opprecioted ond it is solicitedin 1978ond succeeding yeors.
13
Membership
FronkJunell, ClossA Director, Federol Reserve
Bonk of Dollos,MembershipCommittee
Membership in ihe Federol ReserveSystem hos been declining ond is o motter of
increosing interest ond concern. Since '1946,
when 49 percent of oll bonks in the United
Stotes were members, membership hos now
declined to obout 39 percent. Significontly,
the
proportion of oll bonk deposits held by
member bonks declined during this period
from 86 oercent lo 74 oercent, Trends in the
EleventhDisirictwere similor,Thesefiguresdo
not copture the full flovor of the erosion of
membershio becouse notionql bonks ore
requiredto be members.Stote bonks,forwhich
m e m b e r s h i pi s o p t i o n o l , h o v e i n c r e o s i n g l y
chosen nonmember stotus.Of ihe 1.700bonks
chortered by the vorious stqtes during 1970to
1977, only obout 600 decided to join the
Federol Reserve System, During the sqme
period, 403 member bonks withdrew from
membership,Moreover,lorge stote bonkshove
increosinglychosen nonmember stotus.
The Boord of Directors of the Federol
ReserveBonk of Dollos views these trends os
seriousdevelopments. A Directors'Committee
on Membershipwos oppointed in 1977,consistingof Dr,ChorlesBeoird,Choirmon,Shreveport, Louisiono;Gene Adoms, Seymour,Texos;
ond FronkJunell.Son Angelo, Texos,TheCom14
mittee wos directed to study oll foctors offecting membership.The Committee decided it
needed to obtoin the views of bonkers
throughout the Eleventh Federol ReserveDistrict, The leodership of the stote bonking
ossociotions of Louisiono. New Mexico, Oklohomo. ond Texoswere invited to discusswith
the MembershipCommittee the recent trends
in membership,couses of these trends, ond
whot, if onything, should ond could be done
obout them.
In these discussions,it wos quickly ond
u n o n i m o u s l yo g r e e d t h o t o s t r o n g ,v i o b l e ,
broodly bosed Federol ReserveSystemis in the
best interestof bonking ond the country, lt wos
ogreed further thot effective monetory policy
requires o substontiol degree of independence for the Notion's centrol bonk ond thot
such independence is more likelyto be mointoined if o brood representotion of bonks of
oll sizes,types, ond geogrophic oreos tokes
on octive interest in the Federol ReserveSystem. Finolly,it wos ogreed thot cost wos the
most importont reosonfor the decline in membership.
One key question,then, is how to reduce
the cost of reserverequirements to o level ot
which oll bonks thot fovor o strong, effective
ChorlesT.Beoird,DeputyChoirmon,Federol
ReserveBonk of Dollos,MembershipCommittee
centrol bonk con offord to be members,There
ore o number of olternotives.Thecost of membershipcould be lorgelyeliminoted by reducing reserverequirementsto very low levels.This
view is consistentwith studies of the Federol
ReserveBonksof Boston,New York,ond Konsos
City. However, this would dilute the effective
control of money ond credit conditions,
The inequity of loying the cost of monetory control on one sector of the finonciol
community could be eliminoted by extending
reserverequirementsuniformlyond equitobly
to oll institutionsthot provide poyments sevices. This hos been proposed by the Federol
Reserve, but hos not received wide support
in the finonciol community or the Congress.
The cost of reserverequirementscould be
reduced or eliminoted by poying intereston
required reservebolonces held of ihe Federol
ReserveBonks.Thisopprooch is included in o
legislotive proposol cunently before the Congres, The mojor objections ore thot it would
reduce the eornings of the Federol Reserve
Bonkspoid to the U.S,Treosuryond would be
viewed by some os o government subsidy to
member bonks.
Another woy to reduce costs would be
to outhorize bonks to hold oll or port of their
Gene D. Adoms, Closs A Director, Federol
ReserveBonk of Dollos,MembershipCommittee
required reservesin specified government
securitiesor other eorning ossets.The effects
would be similor to o reduction in reserve
requirements,
Studyof membershipinequitiescontinues
of ihe ReserveBonks,the Boord of Governors,
ond the Congress.lt is imperotive ond highly
proboble thot oction will be token soon.
Bonkingleodersin the District,in ossessing
other elements of the membership question,
emphosized thot bonks lock sufficient informotion to evoluote the cost effectiveness of
Federol Reserveservices,This report is one
responseto their findings.
It wos olso suggested thot Federol
Reserveservices should be simplified ond
streomlined.During recent months, the
monogement of every deportment of the
Federol Reserve Bonk of Dollos ond the
Bronchesof ElPoso,Houston,ond Son Antonio
hos reviewed its operotions to identify proceduresthot could be chonged to provide betler
servicesor eosier occess to them to member
bonks.
15
Boordof Dircctors
""rlu;
: , - l*
Seoted left to right:Gerold D. Hines,ChorlesT.Beoird.lrvingA. Mothews.Morgoret S.Wilson.Stonding
left to right:RobertH. Stewort,lll, StewortOrton, Gene D. Adoms, FronkJunell,ThomosW. Henick
Federol ReserveBonks hove o boord of
nine directors- three ClossA ond three Closs
B directorselected by the lorge.medium,ond
smollmember bonks in the District;ond three
Closs C directorsoppointed by the Boord of
Governors.ClossA directorsore elected by the
member bonks to be representotiveof the
stockholding bonks ond, os o motter of proct i c e , o r e u s u o l l yo c t i v e o f f i c e r so f m e m b e r
bonks. Closs B directors ore elected by the
member bonks to represent the public with
due but not exclusive considerotion to the
interestsof ogriculture, commerce, industry,
services,lobor, ond consumers.ClossC directors ore oppointed by the Boord of Governors
fo representthe public with due but not exctusive considerotionto the interestsof ogriculture, commerce, industry,services,lobor, ond
consumers.NeitherClossB nor ClossC direc16
tors moy be officers,directors.or employees
of o bonk, ond ClossC directorsore prohibited
from being siockholdersof ony bonk. All directorsore selected without discriminotionon ihe
bosis of roce, creed, color, sex, or notionol
origin.Termsof oll the directorsore three yeors,
with one term in eoch clossof directorsexpiring
of the end of eoch yeor,
The Choirmon ond Deputy Choirmon of
the Boord of Directorsore designoted by the
Boord of Governorsfrom the ClossC directors
o n d t h e C h o i r m o n s e r v e so l s o o s F e d e r o l
ReserveAgent, the Boord of Governors'representotive in the District.He mointoins control
of currency uniil releosedto the ReserveBonk
to be put in circulotion os orders from commerciolbonksore filled.
Eoch Bronch-El Poso.Houston.ond Son
Antonio-hos o seven-memberBoord of Direc-
tors, three of whom ore oppointed by the
Boord of Governors ond four of whom ore
oppointed by the Boord of Directors of the
Fede.rolReserve Bonk of Dollos. Those
oppointed by the Boord of Governorsore persons octively engoged in commerce, ogriculture, some other industriolpursuit,or the proctice of o profesion, ond moy not be officers,
directors, or employees of ony bonk. Of those
oppointed by the Boord of Directors of the
DollosBonk,three ore usuollybonkersond one
is o person who is octively engoged in commerce, ogriculture, or some other industriol
pursuit. All Bronch Directorsmust reside within
the tenitory served by the Bronch.
A list of the directors of the Federol
ReserveBonk of Dollos ond its Bronches ot El
Poso, Houston, ond Son Antonio os of
December 31, 1977,is shown on poges 20-21.
The officers of the Federol ReserveBonk
ond Bronchesore oppointed qnd their solories
determined by the Boord of Directors within
ronges opproved by the Boord of Governors.
Appointment of the Reserve Bonk President-the Bonk'sChief ExecutiveOfficer-ond
FirstVice President is subject to the opprovol
of the Boqrd of Governom.
The Boords of Directon of the Federol
ReserveBonksof Dollos,Atlonto, ond St. Louis
onnuolly elect o member ond on olternote
member of the FederolOpen Morket Committee (FOMC).The elected member ond olternote member ore selected from the Presidents
ond FirstVice Presidentsof those Bonks. The
FOMC, which is composed of the seven
members of the Boord of Governors ond five
elected representotives of the twelve Reserve
Bon ks,meets periodicol ly ond estoblishesopen
morket policy for the Federol ReserveSystem.
The Boord of Directorsoppoints onnuolly
o representotive from the Districtto the Federol
AdvisoryCouncil, The Council, which consists
of representotives of eoch of the twelve
Federol Reserve Districts.meets of leost four
times eoch yeor to odvise the Boord of Gover-
ElPosoBronchBoord,Seotedleft to right GeorgeV, Jonzen,JosefinoA. Solos-Porros,
Goge Hollond,
WoyneStewort.Stondingleft to righl ArnoldB, Peinodo,Jr.,A. J. Losee,ReedH. Chittim
17
nors on motters of interest to the Boord ond
ony other mottersthe Council believesshould
be brought to the Boord's otiention. Ben F,
Love,Choirmon of the Boord ond Chief Executive Officer, TexosCommerce Bonk, Notionol
Associotion, Houston, serued os o member of
the Federol AdvisoryCouncil representing the
Eleventh Federol ReserveDistrict during 1977,
ond he wos succeeded by Jomes D. Berry,
Choirmon of the Boord ond Chief Executive
Officer,Republic of TexosCorporotion,Dollos,
effective Jonuory 1, 1978.
Every 14 doys, the Boord of Directors
estoblishes the rotes of interest on Reserve
Bonk loons to member bonks, individuols,ond
corporotions other thon member bonks, subject to review ond determinotion of the Boord
of Governors,Likewise,every 14 doys of eoch
regulor meeting of the Boord of Directors or
its ExecutiveCommittee. there is submitted for
rotificotion o report showing the Bonk's borrowing octivities since the lost report.
ln oddition to these specific motters, the
generolly
directors hove the responsibilities
ond,
olong
with the
to
bqnk
directors
oscribed
provide
generol
surveilBoord of Governors,
lonce of the Federol ReserveBonk,
Houston Bronch Boord. Left to right: P. K. Stubblefield, Bookmon Peters, Gene M. Woodfin, Seth
W, Dorbondt,Alvin l. Thomos,Not S, Rogers.Not shown in picture:JereomeL. Howord
18
Son Antonio Bronch Boord. Seoted left to right: Pete Morqles,Jr., Morsholl Boykin lll, Richord W,
Colvert, Stonding left to right: Pot Legon, Leon Stone, John H. Holcomb, Ben R. Low
Chong?sin Direclors
At the Heod Office, the Boord of Governors redesignoted lrving A. Mothews, Son
Antonio, Choirmon of the Boord ond Federol
ReserveAgent ond Chorles T. Beoird, Shreveport, Deputy Chqirmon for the yeor 1978.The
Boord of Governors reoppointed lrving A.
Mothews for on odditionol three-yeor term os
o Closs C director, effective Jonuory 1, 1978.
The member bonks in the District reelected
FronkJunell (ClossA), Son Angelo, ond Gerold
D, Hines (Closs B), Houston, for odditionol
three-yeor terms beginning Jonuory 1, 1978.
At the El Poso Bronch, the Boord of
Governorsoppoi nted ChesterJ. Kesey,Portner,
Kesey Bros. Enterprises,Pecos, Texos, os o
director of thot Bronch for o three-yeor term
beginning Jonuory 1,1978,succeeding Goge
Hollond, Alpine, Texos,whose term expired.The
Boord of Directorsof the Federol ReserveBonk
of Dollos oppointed Cloude E. Leyendecker,
President,Mimbres Volley Bonk, Deming, New
Mexico, to o three-yeor term os o director of
the El Poso Bronch, effective Jonuory 1, 1978,
succeeding Woyne Steworl,Alomogordo, New
Mexico, whose term expired.
At the Houston Bronch. the Boord of
Governors reoppointed Gene M, Woodfin,
Houston, for on odditionql three-yeor term os
o director of thot Bronch, effective Jonuory 1,
1978. The Boord of Directors of the Federol
ReserveBonk of Dollos oppointed J. EorlWillioms, Director, Instituteof Lobor ond Industriol
Relotions,Universityof Houston, Houston, to o
three-yeor term os o director of the Houston
Bronch,effective Jonuory 1,1978,succeeding
Seth W. Dorbondt, Conroe, whose term
expired.
At the Son Antonio Bronch, the Boord of
Governors oppointed John J. McKetto, Jr,, E.
P. Schoch Professor
of Chemicol Engineering,
The Univenity of Texos,Austin, os o director of
thot Bronch for o three-yeor term beginning
Jonuory 1, 1978,succeeding Morsholl Boykin
lll, Corpus Christi,whose term expired. The
Boord of Directorsof the Federol ReserveBonk
of Dollos oppointed John H. Gorner, President
ond Chief ExecutiveOfficer, Corpus Christi
Notionol Bonk, Corpus Christi,to o three-yeor
term os o director of the Son Antonio Bronch,
effective Jonuory 1, 1978, succeeding Leon
Stone, Austin,whose term expired.
19
Dircctors
December31,1977
Federol ReserveBonk of Dollos
lrving A. Molhews
ChorlesT.Beoird
Gene D.Adoms
ThomosW.Henick
Gerold D. Hines
FronkJunell
SlewortOrlon
RoberlH.Sleworl,lll
MorgorelS.Wilson
(Choirmon ond Federol ReserveAgent), Choirmon of the
Boord ond Chief ExecutiveOfficer, FrostBros.,Inc., Son
Antonio. Texos
(Deputy Choirmon), Publisher,Shreveporl Journol,
Shreveport,Louisiono
President,The FirstNotionol Bonk of Seymour,Seymour,
Texos
Cottle ond Investments,Amorillo, Texos
Orvner,Gerold D, HinesInterests,Houston,Texos
Choirmon of the Boord. The Centrol Notionql Bonk of Son
Angelo, Son Angelo, Texos
President,Foley's,Divisionof Federoted Deportment
Stores,Inc., Houston,Texos
Choirmon of the Boord, FirstInternotionol Boncshores.
Inc., Dollos,Texos
Choirmon of the Boord ond Chief ExecutiveOfficer,
ScorbroughsStores,Austin,Texos
El Poso Bronch
Goge Hollond
Josefino A. SolosPoros
Reed H. Chitlim
George V. Jonzen
A. J. Losee
Amold B. Peinodo, Jr.
Woyne Sfeworl
20
(Choirmon),Owner,Goge Hollond Ronch,Alpine, Texos
(Choirmon ProTem),Executive Director, Bl Longuoge
Services,El Poso,Texos
President,FirstNotionol Bonk of Leo County, Hobbs, New
Mexico
El Poso,Texos
President,Losee& Corson, P, A, (o lowyers'professionol
corporotion), Artesio, New Mexico
Portner,AVC Development, El Poso,Texos
President,FirstNotionol Bonk in Alomogordo,
Alomogordo, New Mexico
HouslonBronch
Alvinl. Thomos
Gene M. Woodfin
SethW. Dobondf
Jerome L. Howold
Bookmon Pelels
Not S.Rogers
P.K. Stubblefield
(Choirmon),President,
Proirie
ProirieViewA&M University,
View,Texos
(ChoirmonProTem),Choirmonof the Boordond Chief
ExecutiveOfficer,MorothonMonufocturingCompony,
Houston.Texos
Choirmonof the Boord,FirstNotionolBonkin Conroe,
Conroe.Texos
Choirmonof the Boordond Chief ExecutiveOfficer,
Mortgogeond Trust,Inc.,Houston,Texos
President,
TheCity NotionolBonkof Bryon,Bryon,Texos
President,
FirstCity NotionolBonkof Houston,Houston,
Texos
Choirmonof the Boord,VictorioBonk& TrustCompony,
Victorio.Texos
SonAnlonio Bronch
MorshollBoykin
lll
PefeMoroles,Jr.
RichordW.Cqlverf
John H. Holcomb
Potlegon
BenR.Low
LeonSfone
(Choirmon),SeniorPortner,Wood, Boykin& Wolter,
Lowyers,
CorpusChristi,Texos
(ChoirmonProTem),Presidentond GenerolMonoger,
MorolesFeedLots,Inc,,Devine,Texos
Choirmonof the Boord,NotionolBonkof Commerceof
SonAntonio,SonAntonio,Texos
Owner-Monoger,
ProgresoHociendosCompony,
Progreso,
Texos
Owner,LegonProperties,
SonAntonio,Texos
Vice President,
CommerceNorthBonk,Notionol
Associotion,
SonAntonio,Texos
President,
TheAustinNotionolBonk,Austin,Texos
FederolAdvisoryCouncil Member
BenF. Love
Choirmonof the Boordond Chief ExecutiveOfficer,Texos
CommerceBonk,NotionolAssociotion,
Houston,Texos
21
Officcrs
DECEMBER
31,1977
ErnesfI. Boughmon
President
Foresf E.Colemon
Assistont
Vice President
RoberfH. Boykin
FirstVice President
Amold L. Hoyes
AsistontVice President'
GeorgeC. Cochron,lll
SeniorVice President
RichordD. Ingrom
Secretory
Vice Presidentond Assistont
Assistont
HorryE.Robinson,
Jr.
SeniorVice President
LorryJ. Reck
AsistontVice President
TonyJ. Solvoggio
SeniorVice President
ThomosH. Rusf
Vice President
Assistont
RobedA. Brown
GenerolAuditor
NeilB.Ryon
Assistont
Vice President
JosephE.Burns
Vice President
JesseD. Sonders
Vice President
Assistont
RolphT.Green
Vice Presidentond SeniorEconomicAdvise/
SommyI. Schulze
Vice President
Assistont
C. J. Pickering
Vice President
RobertSmith,lll
Assistont
Vice Presidentond Secretory
W. M. Pdtchetl
Vice President
T.E.Spreng
Assistont
Vice President
George F.Rudy
Vice Presidentond GenerolCounsel
E.A. Thoxlon,Jr.
Vice President
Assistont
ThomosR.Sullivon
Vice President
Coilo M. Worberg
Controller
Assistont
Vice Presidentond Assistont
E.W.Vorlop,Jr.
Vice Presidentond Controller
MillordE.Sweoll,Jr.
Assistont
GenerolCounsel
JohnC. Bloke
Assistont
Vice President
Adilon W.Throop
ReseorchOfficer
J. A. Clymer
Assistont
Vice President
C. L.Mck
Assistont
GenerolAuditor
22
ElPosoBronch
Freddc W. Reed
Vice Presidentin Chorge
Joel [. Koonce, Jr.
AssistontVice President
HouslonBronch
J. Z. Rowe
Vice President
in Chorge
SommieC. Cloy
Assistont
Vice President
Vemon L. Bodee
OperotionsOfficer
C. O. Holt,Jr.
OperotionsOfficer
SonAnlonio Bronch
Coil H. Moore
Vice Presidentin Chorge
Ihomos H. Roberfson
Assistont
Vice President
ThomosC. Cole
OperotionsOfficer
RobedW.Schulfz
OperotionsOfficer
1 Retiredos of December 31, 1977.
2 Leon W. Cowon, Vice President, resigned effective
Morch 25. 1977to occept o position os ExecutiveVice
Presidentof o commerciol bonk. EffectiveApril1, 1977,
Mr. Hoyeswos elected AssistontVice Presidentond
ossumedsupervisionof the RegulotionsDeportment.
'1,5
Stolemenfof Condition
December 31
.4977
Assels
Gold certificote occount
Speciol DrowingRightscertificote occounl
Federol Reservenotes of other Bonks'
Coin'
Other cosh
Loonsond Securities:
Loons
Federologency obligotions
U.S,Governmentsecurities
Totol loons ond securities
Cosh items in processof collection
Bonk premises
Operoting equipmenlo
Other ossets
Interdistrictsettlement occount
TololAssels
Liobilities
FederolReservenotes in octuol circulotion
Deposits:
Member bonk - reserveoccounts
U.S.Treosury- generol occount
Foreign
Other
Iotol deposits
$ 455,76,1,300
48,000,000
CopitolAccounfs
Copitolpoid in
Surplus
Tolol
Accounfs
totol tioOitities
s 420,435,200
46,000,000
218,342,208
,2,490,901
21,374,602
23,900,000
400,,194,000
5,045,97,1,000
1,937,000
322,689,OOO
4,430.078,000
5,470,065,000
887,588,775
,t,t,537,528
4,754,704,000
806,060,718
11,660,735
2,993,827
72,182,698
359,136,915
97,052,188
290,303,728
57,272,799,420
s6,712,890,903
$4,07,1,753,548
s3,702,248,269
1,922,220,415
452,959,4ri0
.,|5,439,200
34,.150,904
2,44,769,929
1,713,142,757
572,289,O12
13,199,200
36,731,901
2,335,362.870
602,336,08.1
57,494,562
Defened ovoilobilitycosh items
Other liobilities
Tofol Liobilities
1976
523,267,376
41,604,788
S7,,156,354,'l20 s6,602,483.303
$
58,222,650
58,222,650
$ ll
300
s
55.203,800
55,203,800
$ 110,407.600
1 EffectiveJonuory I , 1977, Federol Reservenotes of other Bonkswere merged into the liobilityoccount for Federol Reserve
notes.
2 BeginningJonuory1,1977,the coin previously
reflectedin the "Other cosh" occountwos reportedos "Coin" ond the
remoinder of "Other cosh" wos reflected in "Other ossets".
3 BeginningJonuory 1, 1977, "Operoting equipment" wos tronsfenedto "Other ossets".
24
Eqrningsond Exp?ns?s
December31
1977
Cunenf Eornings
Loons
U.S,Governmentsecurities
Foreigncurrencies
Allother
TofolCurenl Eornings
CurrenfExpenses
Cunentoperotingexpenses
Asessmentfor expendituresof Boordof Governorsl
FederolReservecurTency
Totol
Lessreimbursement
for certoinfiscologency
ond other expenses
Nef Expenses
Profilond loss
Cunent net eornings
Additionsto currentnet eornings:
Profiton solesof U,S.Governmentsecurities(net)
Allother
Totolodditions
Deductionsfrom cunent net eornings:
Losson solesof U.S.Governmentsecurlties(net)
Losson ForeignExchonge(net)
Allother
Totoldeductions
Net odditionsor deductions(-)
for expendituresof Boordof Governors'
Assessment
Net eorningsbeforedividendsond poymentsto U,S.Treosury
Dividendspoid
(intereston F.R.notes)
Poymentsto U.S.Treosury
Tronsfenedto surplus
Surplus,
Jonuory1
Surplus,December31
s 2,723,#2
332,E63,.t3.1
l#,592
36,EsE
$335,7E0,243
s 30,594,.164
3,282,1U
33.E76.3.r8
1976
475,491
311,U3,8U
1,581,130
37,928
$313.738,433
s
s 29,725,121
2,333,400
3.960,348
36,018.869
,1,984,865
s 3.1,891,4Si
s 34,324,288
$303,EEE,790
s279,414,145
1,694,581
1,4f,3,426
1,6U,866
108,644
1,4E3,426
1,763,510
2,511,69
E,.197,523
451,129
,t0.E60.32{
1,404,150
112,246
1,516,396
-9,376,895
2,ffi,7OO
291,E45,195
3,411,215
285,4.15,130
3,0{E,E50
55,203,800
s 58,222,650
247,114
279,661,259
3,206,262
273,148,947
3.306.050
51,897,750
s 55,2m.8m
I Assessmentfor expenditures of Boord of Governors wos reflected in cunent expenses in 1976 ond deducted from nel
eorningsi^ 1977.
25
Volume of Operolions
Federol ReserueBonk of Dollos
Heod Office ond Bronches Combined
Loons
Cunency received ond counted
Coin received ond counted
Checks hondled:
U.S.Governmentchecks
Postolmoney orders
Allothef
Collection items hondled:
U.S,Governmentcoupons poid
Allother
lssues,redemptions, ond exchonges
of U.S.Government securities
Tronsfersof funds
Food stomps redeemed
' Pockoged items hondled os o single item ore counted os one piece.
' Exclusiveof checks drown on the F.R.Bonks.
Number of PiecesHondled'
,977
1976
476
187
36/.,420,ti92
346,920,424
864,737,974
794,557,830
46,827,394
9,849,05.1
796,315,257
l9l,412
243,536
'12,356,OO7
tl,766,467
t1o8,785,207
48,498,O34
10.961,031
739,448,798
DollorAmount
t g77
4,228,66r,540
3,499,3,14,,100
'l'14,474,533
1976
593,889.000
3,205.658.350
1U,798,232
23,779,176,262
474,292,997
360,046,900,966
23,982,336,102
505,858,065
3M,324,958,777
229,504
130,613
t124,662,586
252,655,393
1M,611,770
250,436,812
12,238,573
1,402,719
121,418,203
91,382,954,992
2,420,549,4t
9,4A
446,28ti,276
96,837
,O11,114
1,943,679,452,931
496,215,U9
27
EleventhFederolReserveDistricf
@FedFRASER