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FEDERAL RESERVE BANK
OF NEW YORK




ANN UAL REPORT

1984




FED E R A L R E S ER V E B A N K OF NEW YOR K

April 12, 1985

To the Depository Institutions in the
Second Federal Reserve District
I am pleased to present the seventieth Annual
Report of the Federal Reserve Bank of New York, the
first since I assumed the presidency of this Bank in
January of this year.

As such, it provides me with

a convenient opportunity to stress my strong commit­
ment to work closely with the banking and financial
community here in the Second Federal Reserve District.
The challenges we face in terms of the performance of
our economy, the pace of change and innovation in our
institutions and financial markets, and the changing
nature of our economic and financial relations with the
rest of the world were never greater.

In seeking to

meet these challenges with maximum effectiveness, it
is clear to me that we in the New York Fed can only
benefit from a free flow of dialogue with the financial
community.

Dialogue does not guarantee consensus, but

it does help to ensure that as we go about discharging
our public responsibilities with the sense of purpose
and integrity which should be expected of the central
bank, we will have the most informed judgments possible.
We look forward to our continuing associa­
tion with you in the period ahead.




Federal Reserve Bank
of New York

SEVENTIETH
ANNUAL REPORT
F o r the Y ea r
Ended
D ecem ber 31, 1984

Second Federal Reserve D istrict

T H E W ORLD EC O N O M Y IN 1984
P R O G R ESS B U T M AJO R P R O B LEM S R EM A IN

Contents:

Page

UNEVEN ECONOMIC PERFORMANCE...............................................................................................

3

The U.S. Econom y..............................................................................................................................

4

Industrial C o u n trie s .........................................................................................................................

8

Developing C o u n trie s ....................................................................................................................... .... 13
PRESENT PROBLEMS AND FUTURE R IS K S ........................................................................................ 14
Deficits in the United S t a t e s .......................................................................................................... .... 15
Longer-term Growth in Europe............................................................................................................ 18
Protectionism in the World Market P la c e ........................................................................................ 22
Vulnerability in the Less Developed C o u n trie s ......... ..................................................................... 23

Financial S ta te m e n ts....................................................................................................................... .... 25
Changes in Directors and Senior O ffic e rs ........................................................................................ 28
List of Directors and Officers.......................................................................................................... .... 31




Seventieth A n n u a l R ep ort
F e d e ra l Reserve B a n k o f N e w York

U N EV EN EC O N O M IC P ER FO R M A N C E

O verall, 1984 was an encouraging year for the world economy. In the United
States, strong econom ic growth continued and inflation remained moderate.
Inflation stayed low in most other industrial countries as well. The pace of
econom ic activity was uneven, how ever. Japan and Canada experienced substan­
tial expansion, while Europe recovered only modestly. Increased exports to the
United States and other industrial countries helped the developing countries as a
group to reduce their current account deficits. Many of them were also able to move
tow ard resum ing growth and rescheduling their debts over longer periods.
But as the year ended, optim ism about the world economy was tem pered by the
fact that significant im balances rem ained, and these posed serious problems for the
future. The international debt situation was far from resolved. Large deficits, both
budgetary and external, were a threat to longer run growth without inflation in the
U nited States. The soaring dollar made for an uneven recovery at hom e, depressing
im port com peting and exporting industries alike. A broad, its counterpart—
w eakening foreign currencies— lim ited the scope for expansionary policies in the
other industrial countries. Not surprisingly pressures for protectionist measures
intensified around the w orld. The achievem ent of a sustainable pattern of world
trade and econom ic growth clearly requires a resolution of these issues in 1985 and
beyond.




3

T h e U .S . E c o n o m y
For 1984 as a w hole, output growth exceeded most expectations. Over the four
quarters o f the year, real GNP rose nearly 6 percent, more than a percentage point
above the average for the second year o f expansion in postw ar cycles. The
expansion o f dom estic dem and was even faster— about 63 percent. The bulk of the
/4
advance occurred in the first half of the year, when a surge in inventory investm ent
coincided with large gains in consum er spending, business fixed investm ent, and

C h a r t 1.

In 1984, the U.S. e c o n o m y co n ti n u e d to g r o w r a p i d l y . . .

Percent

6

4

2

0

-2
1 9 8 0 -8 2

w h i l e i n fl at io n r e m a i n e d m o d e r a t e .

4




1983

1984

residential construction. The economy slowed sharply in the third quarter,
reflecting in particular a near leveling off in consumer spending, but in the fourth
quarter economic activity strengthened.
Although the pattern of economic growth was uneven, the expansion in 1984 was
strong enough to create more than 3 million new jobs and to reduce unemployment
substantially. Over the course of the year, the unemployment rate fell by one
percentage point, to 7.2 percent. The decline was widespread, though not uniform,
among industries and population groups by age, sex, and race. Nevertheless, as
1984 ended, unemployment remained at a historically high level and the economy
still appeared to have ample room to grow.
As imports cushioned a good part of the steep rise in aggregate domestic
demand, inflation continued to be moderate. Over the four quarters of 1984, the
implicit GNP deflator rose 3.6 percent, about the same as in the previous two
years. Intensified competitive pressures stemming from the appreciating foreign
exchange value of the dollar, restraint in wage demands, weak oil markets, and
bumper crops all contributed to this relatively favorable inflation performance.
As to the future, a prolonged period of good growth and relatively low inflation
would seem to be within the country’s reach. Prospects for achieving that will be
best if the expansion does not become overly exuberant and thus rekindle
inflationary expectations. At the same time, a start must be made without any
further delay in bringing down the twin deficits—budgetary and external.
The already large external deficit widened dramatically last year, as U.S.
expansion surpassed growth abroad and as the dollar continued to move up— with
investors being attracted to the dollar by U.S. interest rates and general economic
strength. The value of merchandise exports rose 10 percent, but with an increasing
share of U.S. demand shifting to foreign suppliers, the value of imports surged 26
percent. Import penetration was particularly deep in the capital goods sector. The
share of imports in total business spending on durable equipment jumped nearly 30
percent to reach almost a quarter of the total. Foreign producers of all types of
business equipment, including high technology goods, participated in this
expansion. While the merchandise trade deficit climbed rapidly, the surplus on socalled invisibles— services, grants and remittances— disappeared by the end of the
year, as payments on the growing indebtedness to foreigners outpaced income
received on U.S. investments abroad.
Increased flows of capital from abroad absorbed much of the pressures on the
credit markets from the growing demands of both the private and public sectors.
Last year, net capital inflows represented about a quarter of the pool of savings




5

C h a r t 2. T h e e x t e r n a l d e f i c i t w i d e n e d s h a r p l y f u r t h e r .

B i l l i o n s of
d o lla rs
C u r r e n t a c c o u n t deficit

100

Tra de deficit

1983

1 98 4

an d fo re ig n g o o d s in cre a se d their sh a re of dom estic m arkets.

Percent

30

Total im p o rts /d o m e s tic p u rch ases
C a p ita l g o o d s im p o rts /b u s in e s s pu rchases of d u r a b le e q u ip m e n t

25

( E x c l u d i n g a u t o m o b i l e s a n d tr u c k s )

20
15
10

5

0
1980-82

available to finance net investment and the government deficit. Since the Federal
government, with its $175 billion budget deficit (about 5 percent of GNP), claimed
about 70 percent of net domestic private savings, investment would have been
crowded out significantly were it not for these savings from abroad.
In the event, domestic credit demands climbed steeply last year, with the debtto-GNP ratio rising to its highest level in the postwar period. Total non-financial
sector debt expanded about 13^2 percent, over two percentage points in excess of
the Federal Reserve’s monitoring range, spurred in part by heavy merger activity in




C h a r t 3. A s t h e F e d e r a l G o v e r n m e n t d e b t c o n t i n u e d t o m o u n t , t h e t o t a l d e b t to
G N P r a t i o r e a c h e d t h e h i g h e s t l e v e l s i n c e W o r l d W a r II.

Percent

150

145

140

135

130

125

120

115

110

0
1980

1982

1983

1984

the oil industry and elsewhere. To finance their extensions of credit, banks
expanded their issuance of large CDs. This, in turn, contributed to a 10.5 percent
growth in M3, about one percentage point above the upper bound of its target
range. The narrower aggregates, Ml and M2, rose 5.2 percent and 7.7 percent,
respectively, comfortably inside their ranges.
In the financial markets, interest rates moved in response to the changing pace of
economic growth, concomitant demands for credit, and efforts of the Federal




7

Reserve to achieve sustainable non-inflationary growth. In the first part of the year
as the economy advanced at an extraordinary pace, the money supply grew rapidly
and the Federal Reserve adopted a somewhat more restrictive posture toward
supplying bank reserves. Both short- and long-term interest rates rose substan­
tially, between one and a half and two percentage points. Upward pressures on
private short-term interest rates intensified in May in reaction to the wellpublicized liquidity problems of Continental Illinois Bank. Market concerns were
aggravated by uncertainties about the international debt situation. In this
environment, quality differentials between yields on private money market
instruments and Treasury securities widened considerably.
As the economy slowed down in the third quarter, there was some easing in the
stance of Federal Reserve policy and a marked improvement in inflationary
expectations. Interest rates fell markedly. Moreover, as the problems of
Continental Illinois Bank were contained and progress was made in Latin
American debt negotiations, quality spreads on short-term instruments narrowed to
normal levels. The markets were also reassured by progress that was being made in
strengthening bank balance sheets. That strengthening is visible, for example, in
higher capital positions and larger reserves and charge-offs. By the end of 1984,
interest rates were down to their lowest levels of the year, with those on many
shorter maturities near their troughs in this expansion.

Industrial Countries
Europe continued to move out of the longest recession in its postwar history, but at
a slow pace. Economic expansion gathered strength in late 1983 and early 1984, but
activity slumped in the second quarter, mostly due to labor disputes in Germany
and the United Kingdom. Despite a strong rebound in the third quarter, 1984
growth in Europe as a whole is estimated at only about 2Vi percent. This growth
rate was not enough to stop the unemployment rate from going up to an average of
around 11 percent.
The decline in European inflation that began in late 1981 continued through 1984.
Persistently high levels of unemployment and excess capacity, as well as weakness
in oil and other commodity markets, more than offset the upward pressure on
8




inflation from the widespread and continued depreciation of European currencies
against the dollar. Over the year consumer price inflation declined from 7 to around
5Vi percent on average. Although inflation performance within Europe converged
further, important differences among countries remained.

Chart 4.

E u r o p e c o n t i n u e d to g r o w s l o w l y . . .

Real G N P
O I V to O I V c h a n g e
__ G e r m a n y

Real G N P
O IV to O IV c h a n g e
__ O t h e r E u r o p e *

-

-

—

■
l\ \ \ \ \ \ \ \ N
. . . ... . . .

1

1

.... .

1

-2

1 980-82

1

but J a p a n a n d C a n a d a e x p a n d e d m o r e r a p i d l y .

Percent

Real GNP
O I V to Q I V

Real GNP
change

__ J a p a n

1 9 8 0 -8 2




1983

O I V to O I V c h a n g e
Canada

1 9 8 0 -8 2

1983

* U n i t e d K i n g d o m , F r a n c e , a n d Italy.

9

European trade recovered strongly in 1984, largely due to a surge in exports to
the United States. European exports to the U.S. rose by more than 30 percent, in
dollar terms, during the year. After steadily improving since 1980, the current
account of European countries, as a group, changed little in 1984 and remained
near balance. There was considerable variation, however, among individual

Chart 5.

In the in d u stria l w orld as a w hole, in fla tio n slow ed dow n fu rther in 1984.

10




countries. While Germany’s surplus increased and France’s deficit disappeared,
the external positions of the United Kingdom and Italy deteriorated somewhat.
Economic expansion in Japan and Canada was more rapid than in Europe. Real
GNP grew nearly 6 V percent in Japan, while inflation remained a little over 2
2
percent. Growth continued to be export-led, with net exports directly providing at
least one-third of the increase in GNP. Despite a boost from private non-residential
investment, aggregate domestic demand is estimated to have grown only about 4
percent.
Japan’s large trade and current account surpluses widened further in 1984. The
current account surplus rose to $35 billion, mainly reflecting a rise in the trade
surplus, and reached $44 billion at an annual rate in the fourth quarter. These
increases in Japan’s external payments surpluses were closely linked with the sharp
deterioration in the U.S. external deficits. This connection was evidenced by
further widening of Japan’s large bilateral trade surplus with the United States,
from $20 billion in 1983 to $35 billion in 1984.

Chart 6. In 1984, as the U.S. e xte rn al deficit more than doubled, Ja p a n ’s surplus
increased sharply and the deficits of other countries n a rrow ed further.




11

Economic expansion slowed in Canada. Growth declined from 7 percent in 1983
to slightly over 4 percent in 1984. Inflation continued to moderate in the second
year of recovery— CPI inflation fell nearly a point to about Zx percent in 1984, the
h
lowest since 1971. The unemployment rate, however, remained unusually high,
averaging around 11 percent. The trade surplus widened further in 1984, and the
current account remained in small surplus.

Chart 7. The de veloping countries’ g ro w th perform ance im proved in 1984.

* Includes K ore a, Hon g K on g , M a l a y s i a , S i n g a p o r e ,
Taiwan, a nd T h a il a n d .

12




D e v e lo p in g C o u n t r ie s
The developing countries made considerable progress in 1984 toward restoring
economic expansion and resolving their financial difficulties. Growth picked up to
an average of nearly 4 percent from less than 1 percent in 1983. East Asia once
again showed the strongest advance, with output in Korea, Taiwan, and Singapore
all growing over 7 percent. However, per capita income failed to improve
significantly in many countries and remained below the levels achieved during the
late 1970s. Excessively high and accelerating inflation remained a major
disappointment for some countries in Latin America and the Middle East, severely
constraining their economic performance.
The combined current account deficit of the non-oil developing countries
narrowed further in 1984 to an estimated $25 billion, compared with a peak deficit
of nearly $100 billion in 1981. The current account improvement last year was

C h a r t 8.

Latin A m e r i c a n c o u n t r i e s r e s u m e d t h e i r e x p o r t g r o w t h in 1984,

a n d s o m e r e c o r d e d l a r g e t r a d e su rp lu ses .
M e rch a n d is e tra d e




13

particularly encouraging as in most countries it came from export growth rather
than import cuts. The improvement was widely spread among developing
countries, but some countries dependent on exports of commodities with
particularly weak prices, such as copper and sugar, did not share in the trade gains.
Exports of the non-oil developing countries as a group rose 10 percent in volume,
while their imports increased about 6 percent. Export growth was strong in Latin
America, where some countries, including Brazil and Colombia, experienced
significant improvement in their current account positions. Mexico’s external
balance remained in substantial surplus.
The external debt restructuring process also achieved positive results last year.
In September, Mexico reached an agreement in principle with its advisory banks on
a multi-year rescheduling covering debt falling due between 1985 and 1989.
Venezuela and Ecuador reached preliminary understandings on their debts. By late
1984 Brazil had also begun discussions for multi-year restructuring of its debt.
Some progress in negotiating financing arrangements with the creditor banks was
also made by other countries, including Argentina and the Philippines.

PRESENT PROBLEMS AND FUTURE RISKS
Given that steady, moderate growth without resurgent inflation is the goal, the
world economy at first glance appears in general to be moving along the right path.
In some places, growth is too slow or inflation too high, but the general direction
looks favorable at this point. A closer view, however, reveals some areas where
troublesome imbalances have evolved. Left unattended, these distortions could
undermine progress, and prospects for progress, throughout the world.
Two major snags are the interconnected U.S. deficits— budgetary as well as
external— and Europe’s slow growth, with its attendant high unemployment. In
large measure, these situations worsen two other troublesome factors: increased
pressures for protectionism and the continued vulnerability of the less developed
countries. All four of these constitute problems in and of themselves now. More
importantly, all are problems that interact and if allowed to fester could escalate
and thus be harder to rectify in the future.
14




D e f ic it s in t h e U n it e d S t a t e s
Fundamental imbalances in the U.S. economy, reflected in the large budgetary and
external deficits, pose a serious danger to healthy growth and further progress on
inflation.
The Federal budget deficit in fiscal 1984 was slightly above 5 percent of GNP,
about the same as the average over the previous two years. Without legislative
actions to reduce the deficit, the deficits from 1985 to 1990 would continue to be in
the range of 5 to 51/2 percent of GNP. The structural or cyclically adjusted (so
called full employment) budget deficit—the part of the deficit that would remain
even if the economy were operating at full capacity— is estimated to rise from
about 3 :/2 percent of GNP last year to about 5 percent in 1990.

C h art 9. The Federal budget deficit rem ained a b ove 5 percent of G NP.

F e d e r a l deficits, p e rce nt of G N P
Fiscal y e a r ba sis

1972-81




1982

1983

1984

15

In the short run the budget deficits have benefited the United States and the entire
world economy by providing a stimulus that strengthened the pace of economic
recovery. But for the longer term the underlying pressures created by the deficits
will inevitably harm the economy. The Federal government has already been
consuming unprecedented amounts of available financial resources. Deficit levels
exceeded net private savings of the domestic economy in 1983 and came to about
70 percent of savings in 1984. Over the same period, these deficits pushed up the
volume of outstanding Federal government debt by nearly $400 billion. Without
legislative changes, Federal government debt could, according to estimates of the
Congressional Budget Office, accumulate to nearly 23 trillion dollars (about 50
A
percent of GNP) at the end of the decade, up from 715 billion dollars (28 percent of
GNP) in 1980. The interest payments required for a debt of this size could absorb
15 to 20 percent of all government spending.
Given the size of the Federal government’s borrowing needs, the balance in the
credit markets is very delicate. A marked increase in domestic private credit
demands could exert significant upward pressure on interest rates. Continuing
along the present path could thus damage prospects for capital formation and
productivity, and make it increasingly difficult to sustain meaningful economic
growth. Relying on monetary accommodation and thus on inflation to alleviate
pressures on credit markets from growing budget deficits is obviously not a desir­
able solution. For the U.S. economy to continue to grow without reigniting
inflation requires a substantial reduction of budget deficits. Substantial progress
toward eliminating structural budget deficits would create an environment in which
interest rates would be lower than they would be otherwise. And such a develop­
ment would clearly benefit not just the United States but the entire world economy.
The large and growing foreign trade and external payments deficits are also
unsustainable. But unfortunately there is no easy and simple way to effect a smooth
transition to a more manageable position. U.S. current account deficits have gone
up from $9 billion in 1982, to $102 billion in 1984, and could well exceed $130
billion in 1985. The financing required for these growing deficits is fast eroding the
U.S. net foreign asset position, which has dropped from about $150 billion in 1982
to an estimated $30 billion in 1984, on the basis of recorded data. It is all but
certain that U.S. indebtedness to foreigners will grow very sharply over the next
few years. And with the United States being in a net foreign debtor position (with
foreign claims exceeding our assets abroad), net outpayments representing
earnings on the growing foreign wealth in this country will add to the burden.

16




Chart 10. Capital inflows from abroad represented about a quarter
of the pool of savings.

To ta l p r iv a t e savin gs, percent of G N P

1972-81

1982

1983

1984

In some ways, of course, the strong dollar and the current account deficits have
been helpful. The appreciation of the dollar has been important in dampening
inflation in the United States and in spurring productivity improvements. Other
countries have benefited through greater export orders from the United States and
the resulting stimulus to their economies. Capital inflows associated with the
current account deficit have supplemented our internal savings, thereby making it
much easier to finance the budget deficit on top of the private investment needed to
support growth and productivity.
As against this, the costs of the strong dollar have been growing apace: the
disruption of our export and import competing industries; the burden on the




17

developing countries whose debts are primarily denominated in dollars but whose
foreign exchange income is more diversified; the restraint exerted on other
industrial countries’ domestic policies by their depreciating exchange rates.
Moreover, at some point in the future, U.S. indebtedness to foreigners may reach a
level at which investors may become less willing or able to absorb additional
financial claims on the United States. Perceptions about the desirability of existing
holdings of dollar-denominated assets by foreigners and domestic residents alike
may also shift. If the perceived risk of holding U.S. assets begins to rise, further
increases in real rates of return may be needed to persuade investors to continue
accumulating those assets. Mounting U.S. interest rates, and hence a danger to
growth, could be the result.
To avoid these costs and begin a gradual transition toward a more balanced
world payments position would seem to require a combination of actions both by
this country and by its leading trading partners. A substantive start on narrowing
the Federal budget deficit is the most obvious move for the United States. More
pronounced domestic demand growth in Japan and Europe would be most helpful
for their part.
With these changes in place, lower U.S. interest rates would help reduce the
attractiveness of investing in the United States, at least to some extent. Growing
prosperity and profitability of investments abroad would further redirect the
current, almost one-sided, international flow of capital. In these circumstances, the
currencies of our major trading partners could gradually strengthen and, after a
time, help reduce the U.S. trade deficit. The more equal pace of economic growth
abroad and here would also contribute to this outcome by enlarging the markets for
U.S. exports and slowing the flow of foreign goods to this country. Achieving a
smooth adjustment in the present distorted exchange rate and world payments
relationship may be difficult. But the changes suggested here are necessary to make
a beginning in that direction.

Longer-term Growth in Europe
“ Europessimism” and “ Eurosclerosis” have become fashionable terms in recent
discussions of Europe’s economic health. A closer analysis of some recent changes
in Europe’s economic structure, however, suggests that the extreme gloom implied
by such terms may not be justified.
18




C h a r t 11. U n e m p l o y m e n t c o n t i n u e d t o r i s e in E u r o p e .

1973

1984

In contrast to the strong U.S. expansion that followed the 1981-82 recession,
Europe has been recovering at the slow annual pace of IVi percent. This is only
one-third of the rate during the decade before the first oil shock, and less than half
the V/i percent annual growth in the latter part of the 1970s. More importantly, as a
direct consequence of the slow growth, employment has been declining and
unemployment has continued to go up during the current recovery. The average
European unemployment rate, which had climbed from around 5Vz percent in the
late 1970s to 9 percent in 1982, rose yet another two percentage points to 11 percent
in 1984.
Nevertheless, a variety of concerns— about inflation and inflationary pressures,
about exchange rates depreciating against the dollar, and about large government
budget deficits and rapidly growing public debt—continued to limit the scope for




19

C h a r t 12.

Percent

G e n e r a l g o v e r n m e n t b u d g e t b a l a n c e s i m p r o v e d in the m a j o r E u r o p e a n c o u n t r i e s .

B u d g e t b a l a n c e s , p e r c e n t of G N P
G erm any

4
A ctua I
I S tr u c t u r a l (c y c lic a lly a d ju s t e d )

2

0

I

-2

-4
1980-81

1984

1982

Average

Percent

B u d g e t b a la n c e s , perce nt of G D P
U nited K in g d o m

4
Actual
^ Stru ctu ra l (c y c lic a lly a d ju s t e d )

2

0
-2

-4
1980-81
Average

Percent

1982

1983

1984

1982

1983

1984

B u d g e t b a la n c e s , pe rce nt of G D P
France

4

2

0
-2

-4
1980-81
A verage

20




easier monetary and fiscal policies in many European countries. The strong and
appreciating dollar constrained monetary policy by preventing domestic interest
rates from falling to more accommodative levels and even led to some interest rate
increases. At the same time, fiscal policy was constrained by the authorities’
attempts to limit government spending and reduce budget deficits in the face of
increases in public sector outlays induced by high interest rates and weak growth.
The scope for more flexible fiscal policy also appears to have been limited by
various rigidities in European product and labor markets. These rigidities have
long been regarded as an obstacle to faster growth without resurgent inflation, as
well as an important element behind Europe’s slow growth. Growing realization of
the burden of excessive government interference with market mechanisms,
however, has led to new initiatives emphasizing the private sector, and these augur
well for the future. Of the measurable changes, the most hopeful perhaps has been
an easing in the downward inflexibility of real wages.
Real wages in Europe increased about 1 percent a year over the last five years.
This is less than one-third of the pace over the previous decade, and suggests that
real wages have been significantly less rigid in recent years than before. Of course,
the degree of wage flexibility has varied among countries within Europe, and
among sectors within countries. In Germany, for example, real wages in the whole
economy— which had risen, on average, more than 3 percent annually over 1973 to
1979— suffered absolute declines in 1981 and 1982, and rose less than one-half
percent a year in the first half of the 1980s. The decline in real wage gains was less
pronounced in the United Kingdom, but even so recent wage growth has been less
than one half of the rate during the latter part of the 1970s.
The data available now also suggest a substantial improvement in profitability
during the last few years in most major European countries. At the same time, the
large degree of slack in labor and product markets has greatly reduced both actual
inflation and inflationary expectations. External payments positions of European
countries are also generally comfortable, either in surplus or close to balance.
Finally, in a number of countries, including the major ones, restrictive fiscal
policies have brought general government budgets after adjustment for cyclical
effects into surplus or balance.
All these factors suggest some scope for more stimulative policies in Europe, If
this could be achieved, in conjunction with a meaningful reduction of the U.S.
budget deficit and stronger growth of domestic demand in Japan, the benefits would
be substantial.




21

P r o t e c t io n is m in t h e W o r ld M a r k e t p la c e
Europe’s slow growth and high unemployment and the flood of imports into the
United States, along with the continued appreciation of the dollar, have fostered a
resurgence of protectionist pressures. Competition in manufacturing trade from
Japan and some newly industrialized countries has served to intensify the drive to
protect domestic markets. So did the apparent slow progress in widening access to
the Japanese market and the debtor countries’ need to buttress their external
payments by compressing imports and stimulating exports.
While one can take comfort that restrictive international trading practices have
not spread more widely, the imposition of new obstacles to trade has been
significant. The umbrella of protectionism has been extended to previously lessaffected or uncovered industries including motor vehicles, machine tools, and
consumer electronics. As a result, over the last few years, the number of restricted
items among manufactured imports has risen considerably in both the United States
and Europe. And within the traditionally affected industries— such as steel,
textiles, clothing and footwear— the scope of protection seems to have both
deepened and widened.
The methods of implementing protectionist measures have become more
diverse. Non-discriminatory tariffs and non-tariff barriers have been supplemented
through bilateral or indirect techniques, such as voluntary export restraints and
orderly marketing arrangements. Nuisance measures, including complicated
customs procedures or special health and safety requirements to obstruct the entry
of imports, appear to have become more pervasive. Complex arrays of subsidies
have helped to promote exports.
The most effective way to lower protectionist pressures is to eliminate their
causes. But it will take time to make progress toward better balanced economic
policies and less disruptive exchange rates, and thus toward greater assurance of
sustained real growth in the leading countries. President Reagan’s call for new
international initiatives to sustain the post-World War II momentum toward
comprehensive free trade deserves full support from our trading partners. A new,
expanded round of trade liberalization would help immeasurably in strengthening
the global trading system.

22




Vulnerability in the Less Developed Countries
While the most difficult phase of the international debt problem appears to have
ended and the crisis atmosphere has receded, the debt difficulties of the developing
nations are far from over. True, many Latin American countries have already made
painful economic adjustments and improved their net external positions consider­
ably. Some have even succeeded in resuming growth and making a start toward
rescheduling their debt under more stable multi-year agreements. But even where
progress has been achieved in restoring growth and arranging for financing,
pressing problems remain. The debt situation appears manageable, but it clearly is
a long-term problem that will require close attention and appropriate action by all
participants.
Balanced growth policies by the debtor countries with greater emphasis on the
workings of the market are fundamental prerequisites, with control over inflation
having prominent priority. The International Monetary Fund will have to continue
its monitoring role even in periods when its resources are not needed. The Fund is
not just the guardian of appropriate adjustment policies, but also a persuasive
advocate of market solutions to the debtor countries’ difficulties. At the same time,
there is room for refining and expanding the role of the World Bank and of the other
multilateral lending agencies. The commercial banks have to continue to exhibit
patience and work with the debtors to assure uninterrupted servicing of their loans.
All this will help to restore growth and confidence in the debtor countries, in turn
providing a better environment for an increased flow of private direct investment.
Even with these changes in place, continued progress toward a durable
resolution of the debt problem will be possible only if the United States and the
other industrial countries keep their markets open and their economies growing
robustly. The debtor countries need expanding markets if they are to export their
way out of their debt problems.




23




Fin ancia l S ta te m e n ts
S T A T E M E N T O F E A R N IN G S A N D E X P E N S E S F O R
T H E C A L E N D A R Y E A R S 1 9 8 4 A N D 1 9 8 3 (In dollars)

1984

1983

Total current earnings..................................................................

5,795,629,347

5,141,341,063

Net expenses...............................................................................

211,272,339

196,785,846

Current net earnings

5,584,357,008

4,944,555,217

Profit on sales of United States Government securities and Federal
agency obligations (net)................................................................

16,151,134

6,693,696

All other.....................................................................................

30,694

20,850

Total additions

16,181,828

6,714,546

Additions to current net earnings:

Deductions from current net earnings:
Loss on foreign exchange (net).......................................................

110,974,967

111,336,562

All other.....................................................................................

1,563,926

116,615

Total deductions

112,538,893

111,453,177

Net deductions.............................................................................

96,357,065

104,738,631

Assessments by the Board of Governors:
Board expenditures........................................................................

20,162,400

17,513,200

Federal Reserve currency costs.......................................................

51,203,994

41,636,586

Total assessments

71,366,394

59,149,786

Net earnings available for distribution

5,4 16,6 33,549

4,7 80 ,6 66 ,800

Distribution of net earnings:
Dividends paid.............................................................................

22,886,593

20,884,084

Transferred to surplus..................................................................

39,073,250

25,823,850

Payments to United States Treasury (interest on
Federal Reserve notes)..................................................................

5,354,673,706

4,733,958,866

Net earnings distributed

5 ,416 ,633,549

4,7 80 ,6 66 ,8 00

Surplus— beginning of year..........................................................

357,436,550

331,612,700

Transferred from net earnings.........................................................

39,073,250

25,823,850

Surplus— end of year

39 6,5 09,800

35 7 ,4 36,550

SUR PLUS A C CO U N T




25

S T A T E M E N T O F C O N D IT IO N
In dollars

Assets

D EC. 3 1 , 1 9 8 4

D EC. 3 1 , 1 9 8 3

Gold certificate account.........................................

3,356,584,828

3,058,029,344

Special Drawing Rights certificate account...............

1,335,000,000

1,335,000,000

Coin....................................................................

17,788,603

24,192,328

4,709,373,431

4,417,221,672

Advances ............................................................

78,150,000

124,125,000

★Acceptances held under repurchase agreements.........

— 0—

418,160,108

t Bought outright.....................................................

53,453,237,996

49,294,020,471

Held under repurchase agreements..........................

1,626,895,000

1,384,200,000

Bought outright.....................................................

2,816,403,197

2,830,462,845

Held under repurchase agreements..........................

387,840,000

207,700,000

58,362,526,193

54,258,668,424

Cash items in process of collection..........................

725,094,536

1,361,852,987

Bank premises.....................................................

25,584,445

25,117,643

Total

United States Government securities:

Federal agency obligations:

Total loans and securities

Other assets:

Due from Federal Deposit Insurance Corporation
for indebtedness assumed......................................

— 0—

3,615,950,944

(2,007,767,455)

Interdistrict settlement account..............................

2,086,313,647

2,740,955,325

Total other assets

Total Assets

142,666,667

1,990,276,344

t All other..............................................................

447,748,455

63,805,087,494

62,739,589,495

* Effective July 2, 1984 the Federal Open Market Committee discontinued the use of repurchase agreements on banker's acceptances in open market operations.
t Includes securities loaned—

fully s e c u re d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

t Includes assets denominated in foreign currencies revalued monthly at market rates.

26




1,092,275,000

S T A T E M E N T O F C O N D IT IO N
In dollars

Liabilities

D EC. 3 1 , 1 9 8 4

D EC. 3 1 , 1 9 8 3

Federal Reserve notes (net).................................................

51,096,394,262

49,474,467,588

Depository institutions.........................................................

4,392,132,027

6,227,619,079

United States Treasury— general account..............................

5,316,146,626

3,660,842,946

Reserves and other deposits:

Foreign— official accounts...................................................

139,851,548

77,415,895

Other ...............................................................................

479,787,646

513,168,084

Total deposits

10,327,917,847

10,479,046,004

687,840,471

1,215,482,355

899,915,314

855,720,448

1,587,755,785

2,071,202,803

Other liabilities:
Deferred availability cash items.
★ other................................
All
Total other liabilities
Total Liabilities

63,012,067,894

62,024,716,395

Capital Accounts

Capital paid in .........

396.509.800

357.436.550

Surplus.....................

396.509.800

357.436.550

Total Capital Accounts

793,019,600

714,873,100

Total Liabilities and Capital Accounts

63,805,087,494

62,739,589,495

★ Includes exchange translation account balances reflecting the monthly revaluation of outstanding foreign exchange com m itments.




27

C h a n g e s in D i r e c t o r s a n d S e n io r O f f ic e r s
c h a n g e s in d i r e c t o r s .
In November 1984, the Board of Governors of the
Federal Reserve System redesignated John Brademas Chairman of the board of
directors and Federal Reserve Agent for the year 1985. Dr. Brademas, President of
New York University, New York, N.Y., has been serving as a Class C director and as
Chairman and Federal Reserve Agent since January 1983. Also in November, the
Board of Governors appointed Clifton R. Wharton, Jr. Deputy Chairman for the year
1985. Dr. Wharton, Chancellor of the State University of New York System, Albany,
N. Y ., has been serving as a Class C director since January 1983. As Deputy Chairman,
he succeeded Gertrude G. Michelson, Senior Vice President of R.H. Macy & Co.,
Inc., New York, N.Y., who had served as a Class C director since February 1978 and
as Deputy Chairman since January 1983. At the same time, the Board of Governors
appointed Virginia A. Dwyer a Class C director for the three-year term beginning
January 1, 1985. Miss Dwyer, Senior Vice President-Finance of American Telephone
and Telegraph Company, New York, N.Y., succeeded Mrs. Michelson as a Class C
director.
In December 1984, member banks in Group 3 elected Robert W. Moyer a Class A
director and John F. Welch, Jr. a Class B director, each for a three-year term beginning
January 1, 1985. Mr. Moyer, President and Chief Executive Officer of Wilber National
Bank, Oneonta, N. Y ., succeeded Robert A. Rough, President of The National Bank of
Sussex County, Branchville, N.J., who had served as a Class A director since January
1982. Mr. Welch, Chairman of the Board of General Electric Company, Fairfield,
Conn., succeeded Edward L. Hennessy, Jr., Chairman of the Board of Allied
Corporation, Morristown, N.J., who had served as a Class B director since March
1980.

Buffalo Branch. Effective July 1, 1984, the board of directors of this Bank appointed
William Balderston III a director of the Buffalo Branch for the unexpired portion of a
three-year term ending December 31, 1985. Mr. Balderston, President and Chief
Executive Officer of Chase Lincoln First Bank, N.A., Rochester, N.Y., succeeded
Frederick G. Ray, former Chairman of the Board of Rochester Community Savings
Bank, Rochester, N.Y., who resigned as a director of the Buffalo Branch effective
June 30, 1984. Mr. Ray had served as a Branch director since January 1983.
In October 1984, the board of directors of this Bank redesignated M. Jane Dickman
Chairman of the Branch board for the year 1985. Miss Dickman, a partner in the
accounting firm of Touche Ross & Co., Buffalo, N.Y., has been a director of the
28




Branch since January 1977 and has been serving as Chairman of the Branch board
since January 1983. At the same time, the Bank’s board appointed Ross B. Kenzie a
director of the Buffalo Branch for a three-year term beginning January 1, 1985. Mr.
Kenzie, Chairman of the Board of Goldome, Buffalo, N.Y., succeeded Edward W.
Duffy, Chairman of the Executive Committee of Marine Midland Banks, Inc.,
Buffalo, N.Y., who had served as a Branch director since January 1982. In November
1984, the Board of Governors of the Federal Reserve System appointed Joseph
Yantomasi a director of the Buffalo Branch for a three-year term beginning January 1,
1985. Mr. Yantomasi, UAW Consultant, United Auto Workers, Region No. 9,
Buffalo, N.Y., succeeded George L. Wessel, President of the Buffalo AFL-CIO
Council, Buffalo, N.Y., who had served as a Branch director since January 1979.

The following changes in official staff at the
level of Vice President and above have occurred since the publication of the previous
Annual Report:
Anthony M. Solomon, President of this Bank, retired on January 1, 1985, having
reached mandatory retirement age. Mr. Solomon joined the Bank as its sixth chief
executive officer on April 1, 1980, having held positions of responsibility in both the
public and private sectors in the United States and abroad. Immediately prior to joining
the Bank, he had been Under Secretary of the Treasury for Monetary Affairs.
E. Gerald Corrigan was named to succeed Mr. Solomon as President, effective
January 1, 1985. Mr. Corrigan had served as President of the Federal Reserve Bank of
Minneapolis since August 1980. He joined the Federal Reserve Bank of New York in
1968 as an economist. Mr. Corrigan was appointed an officer of this Bank in 1972,
becoming Senior Vice President in 1980. His assignments at this Bank involved a
broad range of responsibilities, including economic research, open market operations,
planning, and personnel.
Ronald B. Gray, Executive Vice President in charge of the Bank Supervision
Function, died on June 16, 1984. Mr. Gray had joined the Bank’s staff in 1956 and
became an officer in 1965. He had served as the senior officer in charge of the Buffalo
Branch and later as the senior officer in charge of the Management and Resource
Planning Group at the Head Office.
changes




in s e n i o r o f f i c e r s

.

29

Effective July 1, 1984:
Frederick C. Schadrack, formerly Vice President, was appointed Senior Vice
President with responsibility for the Bank Supervision Function.
Mary R. Clarkin, formerly Assistant Vice President, was appointed Vice President
and assigned to the Open Market Operations Function.
Effective January 1, 1985:
Stephen G. Thieke, formerly Vice President, was appointed Senior Vice President
and assigned to the Bank Supervision Function.
Joseph P. Botta, formerly Assistant Vice President, was appointed Vice President
and assigned to the Cash Processing Function.
Robert T. Falconer, formerly Assistant Vice President, was appointed Vice
President and assigned to the Loans and Credits Function.
George W. Ryan, formerly Assistant Vice President, was appointed Vice President
and assigned to the Foreign Relations Function.

Roger M. Kubarych, formerly Senior Vice President and Deputy Director of
Research, resigned from the Bank effective February 1, 1985. Mr. Kubarych had
joined the Bank’s staff in 1971 and became an officer in 1974.
Paul Meek, Vice President and Monetary Adviser, will retire effective June 1, 1985.
Mr. Meek joined the Bank’s staff in 1956 and became an officer in 1960.

30




D ir e c t o r s o f th e F e d e ra l R e s e rv e B a n k o f N e w Y o r k

Term expires Dec. 31 Class Group

D IR E C T O R S

A l f r e d B r i t t a i n I I I ....................................................................................................................................................... ................
Chairman of the Board, Bankers Trust Company, New York, N.Y.

198 5

A

1

T. J oseph S e m r o d ...................................................................................................................................... ................
Chairman of the Board, United Jersey Bank, Hackensack, N.J.

1986

A

2

R ob er t W . M o y e r ................................................................................................................................... ................
President and Chief Executive Officer, Wilber National Bank, Oneonta, N.Y.

1987

A

3

W illiam S. C o o k ........................................................................................................................................ ................
President and Chief Executive Officer, Union Pacific Corporation, New York, N.Y.

1985

B

1

J ohn R. O p e l ............................................................................................................................................... ................
Chairman of the Board, International Business Machines Corporation, Armonk, N.Y.

1986

B

2

J ohn F. W e l c h , J r ...................................................................................................................................... ................
Chairman of the Board, General Electric Company, Fairfield, Conn.

1987

B

3

Jo h n B r a d e m a s , Chairman and Federal Reserve A gent.............................................................. ................
President, New York University, New York, N.Y.

1985

C

C l i f t o n R. W h a r t o n , J r . , Deputy Chairman............................................................................... ................
Chancellor, State University of New York System, Albany, N.Y.

1986

C

V irgin ia A. D w y e r ................................................................................................................................... ................
Senior Vice President-Finance, American Telephone and Telegraph Company, New York, N.Y.

1987

C

D IR E C T O R S — B U F F A L O B R A N C H
M . J a n e D ic k m a n ,

Chairman .......................................................................................................................................................

1985

Partner, Touche Ross & Co., Buffalo, N.Y.
W il l ia m B a l d e r s t o n I I I ...............................................................................................................................................................

198 5

President and Chief Executive Officer, Chase Lincoln First Bank, N.A., Rochester, N.Y.
D o n a l d I. W i c k h a m .........................................................................................................................................................................

1985

President, Tri-Way Farms, Inc., Stanley, N.Y.
H erber t Fo

r t

.......................................................................................................................................................................................

1986

President, The Bath National Bank, Bath, N.Y.
L a v a l S . W i l s o n .................................................................................................................................................................................

1986

Superintendent, Rochester City School District, Rochester, N.Y.
R o s s B . K e n z i e ..........................................................................................................................................................
Chairman of the Board, Goldome, Buffalo, N.Y.

1987

Jo s e p h Y a n t o m a s i ...............................................................................................................................................................................

1987

UAW Consultant, United Auto Workers, Region No. 9, Buffalo, N.Y.

M E M B E R O F F E D E R A L A D V IS O R Y C O U N C IL — 1 9 8 5

L ew is T. P r e s t o n ......................................................................................................................................................
Chairman of the Board, Morgan Guaranty Trust Company of New York, New York, N.Y.




19 8 5

31

O f f ic e r s o f th e F e d e ra l R e s e rv e B a n k of N e w Y o r k
E. G er a ld C o r r ig a n , President
T hom as M. T im l e n , F irst Vice President

S am Y. CROSS, Executive Vice President

J am es H. O l t m a n , G eneral Counsel

Foreign Group

P eter D. S t e r n l ig h t , E xecutive Vice President
P eter F o u s e k , Executive Vice President
and D irector o f Research
Research and Statistics

Open Market Operations

A U D IT

AUTOMATION GROUP
I srael S e n d r o v ic , Senior Vice President

J o hn E. F l a n a g a n , G eneral Auditor
R o b er t J. A m b r o s e , Assistant G eneral Auditor
L o r etta G. A n s b r o , Audit Officer
E dw ar d J. C h u r n e y , M anager,
Auditing D epartm ent

H. A llan V ir g in ia , M anager,
Audit Analysis D epartm ent

ADMINISTRATIVE SERVICES GROUP
E dw in R. P o w e r s , Vice President
J er o m e P. P e r l o n g o , M anager (Night Officer)

D A T A P R O C E S S IN G

P eter J. F u l l e n , Vice President
H ow ar d F. C r u m b , A ssistant Vice President
G eo rge L u k o w ic z , Assistant Vice President
R on a ld J. C l a r k , M anager,
Communications and Technical Services D epartm ent
J am es H. G a v e r , M anager,
Analytical Computer D epartm ent
P eter M. G o r d o n , M anager,
Computer O perations Support D epartm ent
J ohn C. H eid e l b e r g e r , M anager,
Telecommunications O perations D epartm ent
K enneth M. L ef fl e r , M anager,
G eneral Purpose Computer D epartm ent

A C C O U N T IN G

C a thy E. M in e h a n , Vice President
L eon R. H o l m e s , Assistant Vice President
D o n a ld R. A n d e r so n , M anager,
Accounting D epartm ent

J oseph R. P r a n c l , J r ., M anager,
Accounting D epartm ent

S E R V IC E

J o h n M . E ig h m y , Vice President
R o n a ld E. L o n g , Assistant Vice President
*MATTHEW C. D r e x l e r , M anager,
Building Planning D epartm ent
Jo sep h C. M e e h a n , M anager,
Building O perating D epartm ent
J a so n M. S t e r n , M anager,
Records, Printing, and Postal Services D epartm ent
R uth A nn T y l e r , M anager,
Service D epartm ent

*Retires June 1, 1985.

32




SYS TEM S DEVELO PM EN T

S usan C. Y o u n g , Vice President
B arba ra R. B u t l e r , Assistant Vice President
O m P. B ag a r ia , M anager,
Funds Transfer Systems Staff
V iera A. C r o u t , M anager,
Common Systems D epartm ent
P atricia Y. J u n g , M anager,
O perations Systems D epartm ent
I ra K a h n e r , M anager,
D ata Systems D epartm ent
H a r r y Z. M e l z e r , M anager,
D ata Systems D epartm ent
M on ik a K. N o v ik , M anager,
D ata Systems D epartm ent

O ff ic e rs

(Continued)

B A N K S U P E R V IS IO N

F O R E IG N R E L A T IO N S

F r ed er ic k C. S c h a d r a c k , Senior Vice President
S teph en G. T h ie k e , Senior Vice President
A. M a r sh a ll P u c k e t t , Vice President
G eo r g e R. J u n c k e r , C hief Compliance Examiner
L eon K o r o b o w , Assistant Vice President
R o b e r t A. O ’S u l l iv a n , C hief Financial Examiner
B e n e d ic t R a f a n e l l o , Adviser
W illiam L. R u t l e d g e , Assistant Vice President
J am es P. B a r r y , A ssistant C h ief Examiner
J ohn M. C a s a z z a , A ssistant C h ief Examiner
E u g en e P. E m o n d , M anager,

I rw in D. S a n d b e r g , Senior Vice President
G eo r g e W. R y a n , Vice President
J oh n H opk ins H e ir e s , A dviser
G e o r g e R. A r r in g t o n , M anager,
Foreign Relations D epartm ent
G eo r g e H. B o s s y , M anager,
Foreign R elations D epartm ent
F r ancis J. R e isc h a c h , M anager,
Foreign R elations D epartm ent

Supervision Support D epartm ent
A. J oh n M a h e r , Assistant C hief Examiner

T h o m as P. M c Q u e e n e y ,
Assistant C hief Examiner

G er a ld P. M in e h a n , M anager,
Foreign Banking Applications D epartm ent
D on a ld E. Sc h m id , M anager,
Bank Analysis D epartm ent
D o n a ld T. V a n g e l , M anager,
D om estic Banking A pplications D epartm ent

E C O N O M IC A D V I S E R

R ic h a rd G. D a v is , Senior Economic Adviser

E Q U A L E M P L O Y M E N T O P P O R T U N IT Y

D on a ld R. M o o r e , Equal Employment
Opportunity Officer

LEGAL

J am es H. O l t m a n , G eneral Counsel
E r n est T. P a t r ik is , D eputy G eneral Counsel
D on N. R in g sm u t h , Assistant G eneral Counsel
T hom as C. B a x t e r , J r ., Assistant Counsel
D o n a ld L. B it t k e r , A ssistant Counsel
R o b er t N. D a v e n po r t , J r ., Assistant Counsel
J effrey F. I n g b e r , M anager, Personnel D epartment,
A ssistant Counsel, and A ssistant Secretary
J oy ce E. M o t y l e w sk i , A ssistant Counsel
B ra d ley K. S a b e l , Secretary
and A ssistant Counsel
M in d y R. S il v e r m a n , A ssistant Counsel
M a r y S u e S u l l iv a n , Assistant Counsel
W alk er F. T o d d , A ssistant Counsel
R aleig h M. T o z e r , A ssistant Counsel
W eb ster B. W h it e , A ssistant Counsel

FOREIGN GROUP
S am Y. C r o s s , Executive Vice President
T e r r en c e J. C h e c k i , Adviser
F O R E IG N E X C H A N G E

M a r ga r et L. G r e e n e , Senior Vice President
C h a rles M . L u c a s , Vice P resident
P a tr ic ia H. K u w a y a m a , Assistant Vice President
P eter S. H o l m e s , Foreign Exchange Trading Officer




LO A N S A N D C R E D IT S

C hester B. F el d b e r g , Senior Vice President
R ob er t T. F a l c o n e r , Vice President
F r a n k lin T. L o v e , M anager,
C redit and D iscount D epartm ent
K a th leen A. O ’N e il , M anager,
C redit and D iscount D epartm ent

33

O ff ic e rs

(Continued)

M A N A G E M E N T PLANNING GROU
S u za n n e C u t l e r , Senior Vice President
PERSONNEL

R o b e r t a J. G r e e n , Vice President
C a r l W. T urnipsEED , Assistant Vice President
J e f f r e y F. I n g b e r , M anager, Personnel Department,

T hom as J. L a w l e r , M anager,
Currency Verification D epartm ent (Evening)
C harles E. R o c k e y , M anager,
Currency Services D epartm ent
L illie S. W e b b , M anager,
C urrency Verification D epartm ent (Day)

C H E C K P R O C E S S IN G

Assistant Counsel, and Assistant Secretary
R o b e r t C. S c r iv a n i, M anager,
Personnel D epartm ent

J am es O. A s t o n , Vice President
H arry A. C u r t h , J r ., Regional M anager

P L A N N IN G A N D C O N T R O L

(Cranford Office)

R o b er t M. A b pl a n a l p , Vice President
A aron S. D r il l ic k , M anager,

(Jericho Office)

M anagement Information D epartm ent
N ir m al V. M a n e r ik a r , M anager,
M anagement Information D epartm ent

P R I C IN G A N D P R O M O T I O N

WHITNEY R. I r w in , Senior Bank Services Officer
B etsy B u tt rill W h it e , Assistant Vice President
B ru ce A. C a sse l l a , Bank Services Officer
M ic hele S. G o d f r e y , Bank Services Officer

O P E N M A R K E T O P E R A T IO N S

P eter D. S t e r n l ig h t , Executive Vice President
E d w ar d J . G eng , Senior Vice President
M ary R. C l a r k in , Vice President
*P a u l M e e k , Vice President
and M onetary A dviser
J oan E. L o v e t t , Assistant Vice President
E d w ar d J. O z o g , Assistant Vice President
B a r ba r a L. W a l t e r , Adviser
G ary H a b e r m a n , M anager,
D ealer Surveillance Staff

C h r isto ph er J. M c C u r d y ,
R esearch Officer and Senior Economist
A n n -M a rie M e u l e n d y k e , M anager,
Securities D epartm ent

(U tica Office)

F red A. D e n e se v ic h , R egional M anager
A n thon y N. S a g l ia n o , R egional M anager
J ohn F. S o b a l a , Assistant Vice President
S tev en J. G a r o f a l o , M anager,
Check Processing D epartm ent
P a u l L. M c E v il y , M anager,
Check Services D epartm ent
T hom as E. N e v iu s , M anager,
Check Adjustment Departm ent

E L E C T R O N IC S E R V IC E S

J or g e A. B r a t h w a it e , Vice President
H enry F. W ie n e r , Assistant Vice President
J a n et L. W y n n , Assistant Vice President
H. J ohn C o st a l o s , M anager,
Securities Transfer D epartm ent
R ob er t W. D a b b s , M anager,
Funds Transfer D epartm ent
A nd rew H e ik a u s , M anager,
Funds Transfer D epartm ent

F IS C A L S E R V IC E S

R a lp h A. C a n n , III, Vice President
C a r o l W. B a r r e t t , A ssistant Vice President
F r a n k C. E isem an , A ssistant Vice President
Jo sep h J. G rim sh a w , M anager,
Safekeeping D epartm ent

A ngus J. K e n n e d y , M anager,
G overnment Bond D epartm ent

J o hn J. S t r ic k , M anager,
Savings B ond D epartm ent

OPERATIONS GROUP
H en r y S. F u ja r sk i , Senior Vice President
W illiam M. S c h u l t z , A dviser
P U B L IC I N F O R M A T I O N
C A S H P R O C E S S IN G

Jo sep h P. B o t t a , Vice President
M a r t i n P. C u s ic k , M anager,

P eter B a k st a n s k y , Vice President
R ic h a rd H. H o e n ig , A ssistant Vice President
M a r g a r et E. B r u s h , M anager,

Paying and Receiving D epartm ent

Public Information D epartm ent

*Retires June 1, 1985.

34




O ff ic e rs

(Continued)

R ES EA R CH A N D S T A T IS T IC S

S E C R E T A R Y ’S O F F IC E

P eter F o u s e k , Executive Vice President

B r adley K. S ab e l , Secretary

and D irector o f Research

and Assistant Counsel

R ich a rd J. G el so n , Vice President
t J effrey R. S h a f e r , Vice President
M. A kbar A k h t a r , Assistant D irector o f Research
E dw ar d J. F r y d l , Assistant D irector o f Research
t W illiam J. G a sse r , Assistant D irector o f Research
S usan F. M o o r e , Assistant Vice President
J ohn W en n in g e r , Assistant D irector o f Research
P aul B. B en n e t t ,
Research Officer and Senior Economist
N ancy B er COVICI, M anager,
Statistics D epartm ent

J effrey F. I n g b e r , M anager, Personnel Department,
Assistant Counsel, and Assistant Secretary
T heo d o r e N. O p p e n h e im e r , Assistant Secretary

SECURITY CONTROL GROUP
H er b er t W. W h it e m a n , J r ., Vice President

E L E C T R O N IC S E C U R IT Y

fEDNA E. E h r l ic h ,
Research Officer and Senior Economist
G era ld H a y d e n , M anager,
D ata Reporting Support Departm ent
M a r c o s T. Jo n e s , M anager,
Statistics Departm ent

C arl J. P a l a s h ,
Research Officer and Senior Economist

C harles A. P ig o t t ,

R ich a rd P. P a ssa d in , Security Officer

p r o t e c t io n

R ob er t V. M u r r a y , Assistant Vice President
W illiam J. K e l l y , M anager,
Protection D epartm ent

Research Officer and Senior Economist

D a v id L. R o b e r ts ,
Research Officer and Senior Economist

S E C U R IT Y C O N T R O L

J ohn C h o w a n s k y , Security Control A dviser
f On leave of absence.




O FFIC E R S — B U FFA LO BRANCH
J ohn T. K e a n e , Vice President and Branch M anager
P eter D. L u c e , Assistant Vice President
A C C O U N T IN G ; C A S H ; C R E D IT , D IS C O U N T ,
A N D F IS C A L A G E N C Y

G ary S. W ein t r a u b , Cashier
B A N K S E R V I C E S A N D P U B L IC
IN F O R M A T IO N ; P E R S O N N E L ;
P R O T E C T IO N

R ob er t J. M c D o n n e l l , Operations Officer
B U IL D IN G O P E R A T IN G ; C H E C K ;
S E R V IC E

D avid P. S c h w a r zm u el ler , Operations Officer

35