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The Federal ReserveBank of Philadelphia Annual Report About the cover: These investors are in our Eastburn Court, looking over the application to open a Treasury Direct account. Individuals also come into the Bank every weekday to purchase Treasury securities and savings bonds. Contents: President's Letter 1 1986in Retrospect 4 Directors 12 Officers 15 Advisory Councils 16 Statement of Condition 18 Earnings and Expenses Operating Statistics 19 20 1986Annual Report President'sLetter The FederalReserveBank of Philadelphia has split-level responsibilities.One level is as a teamplayer, a memberof a national Systemthat makes decisionsand takesactionsthat havean important impact on the country as a whole. The other is more localized. This Bank also must provide leadership and servicesto make the Third District financial systemand, in turn, the regional economywork better. Continued I Maybe it's not always true that what's good for the District is good for the nation and vice versa, but in 1986 the Bank's crowning achievement most certainly satisfied both our national and our close-to-home responsibilities. I refer to Treasury Direct. It is a brand new, nationwide book-entry system for U. S. Treasury securities which this Bank has been planning and developing for more than three years. In July we put Treasury Direct into operation with hardly a hitch. The computers in our building are linked to all Federal Reserve offices, and through them we are bringing Treasury Direct service to investors all over the country. FirstVicePresident RichardL. Smootand PresidentEdwardG. Boehne It is an all-win situation. The increased efficiency of Treasury Direct savesthe U. S. Treasury tens of millions of dollars, while it also gives the nation's investors a lot of added safety and convenience. The Federal Reserve System has gained an expanded role in an important financial service, and this Bank winds up with a major new operation and the nice feeling that the entire project was introduced on time and under budget. I like to think that Treasury Direct symbolizes the Bank's overall performance in 1986 -a successful fusion of our national and local responsibilities. Indeed 1986was a year in which the Bank made many other important contributions on the System level and got the job done in the District as well. There are three System-wideconferencesthat provide leadership for the Reserve Banks, and Philadelphia people were active in all of them. The Conference of Presidents and the Conference of First Vice Presidents were chaired in 1986 by me and the Bank's First Vice President, Dick Smoot, respectively.The Conference of Chairmen and Deputy Chairmen brings the leaders of the 12 Reserve Bank Boards together on a regular basis, and our Chairman, Bob Landis, headed the important Employee Benefits Committee. In addition, our senior officers chair a number of other System committees, task forces and working groups, and the Bank's staff has made significant contributions to System projects such as Check Truncation and Inter-District Marketing. On the Bank level, 1986was a year of operational achievement. Not only was there Treasury Direct, but we began a two-year program that ý will revamp every major operating system in the Bank. We had a number of reasons for such a major overhaul - such as controlling our unit costs and improving our efficiency - but our customers should only seebetter services at reasonable prices. For example, 1986brought more effective Automated Clearing House and funds transfer services as well as improved check availability. I believe that the Bank has reached the point where people naturally expect us to do a superior job, no matter what, and doing even better will be one of our biggest goals for 1987. In a year that was highlighted by giant steps in automation, I am pleased to say that the Bank was guided by the principle that technology is for people and not the other way around. Several years ago we realized that something so new and different as Treasury Direct could be a bit scary for some less sophisticated investors, and we designed and carried out a national educational campaign. With so much change in the Bank's operating services crammed into a short period, we acted again to improve people-to-people communication. In June 1986,we began a series of meetings with our customers all over the District to talk with them about our automation plans and to make sure we knew their needs during the changeover period. Excellence in communication was also the 1986 theme of "YOU ARE THIS BANK, " a motivational program for our employees. This Bank, through its Directors, President, and Research Department advisors, plays an important part in the determination of monetary policy. We found that 1986was something of a good news-bad news year for the national economy. On the one hand, interest rates declined, and the economy expanded for the fourth year in a row. Inflation was "oiled" down to the lowest annual rate in over a decade. On the other hand, some industries and regions were left out of the expansion, notably in energy and agricultural related areas. Although the dollar declined, it didn't have the hoped-for impact on trade deficits. These were major disappointments nationally. In contrast, the Third District economy continued to perform well in 1986.In terms of the unemployment rate, retail sales,and particularly housing, the District outdid the nation. Likewise, reports from our farms show little of the distress that still plagues the Midwest and other regions. Third District banks also performed well relative to the nation, but the big news in 1986was interstate banking. Pennsylvania and New Jersey both passed legislation to permit reciprocal interstate banking during the year (Delaware has allowed out-of-state banks to enter since 1981).Several interstate mergers had been announced between large Pennsylvania and New Jersey banks by the year's end and intense behind-the-scenes negotiations were continuing as various institutions prepared to compete on the new playing field. This Bank also made preparations for interstate banking in 1986.Our Research Department studied its potential impact on financial markets and the Supervision and Regulation Department readied itself for an increasing number of applications. In summary, I believe that the Bank got the job done on all levels of its responsibility in 1986.We accomplished a lot, both as a member of a national system and as a major provider of services to Third District institutions. In a year marked by achievements in operations and automation breakthroughs, we tried to keep the focus on the needs of people - the people we serve and those we employ. IV. av-f-ý Edward G. Boehne 3 1986In Retrospect . A year for the Bank is the sum total of many events,largeand small, and here we list a representative sample.Most of the highlights are included along with a selection of other items, including some reportsfrom the District economy. The intent is to create a balanced picture of our activities and accomplishments. The chronologyis divided into calendar quarters to give a senseofflow and structure. Weregretthat we could mention by name only a small fraction of thepeople who made 1986 thefine year it wasfor the Bank. January Thru March relationships between productivity and the Federal deficit. Bank failure costs, the trade deficit, "junk" bonds, and what happened to M1 were among the other topics featured during the year. At the first Board meeting of the year Chairman Bob Landis welcomed two new directors: Clarence McCormick, president of The Farmers and Merchants National Bank, Bridgeton, New Jersey,and Nicholas Riso, president of Giant Food Stores, Inc., Carlisle, Pennsylvania. Through the days of winter, our examiners were on the road to examine state member banks and inspect bank holding companies. Treasury Direct underwent intensive testing as this nationwide book-entry system for U. S. Treasury securities began its final countdown. July was the target month. IF Productionof the TreasuryDirectvideo usedthroughoutthe System. Almost 1,400people toured the Bank during the first three months. They were escorted by the 10 retired employees in our successful part-time guide program. In the auditorium, the Bank's Gospel Choir gave a concert in honor of Martin Luther King, Jr. This was one of 12 concerts during the year, six of which featured students from the Curtis Institute of Music. The Federal Safety Council, Neighborhood Housing Services, Trust Officers Association, and Minority Business Women were among the outside groups that used the Bank's facilities in the first three months of 1986.We make meeting rooms available to appropriate groups that are sponsored by one of this Bank's officers. After a series of explanatory meetings around the District, we implemented a new program to reduce risks that may arise when large volumes of funds are transferred by wire. Senior V. P. Jim Gaylord became the Chairman of the System Subcomittee on Personnel, which reviews benefits and other programs. The first President's Idea Exchange of the year covered how to be a better listener. Dealing with stress was another topic in this managementlevel series. fromthe Curtis Students Instituteof Musicplay to a full housein our auditorium. Our President, Ed Boehne, presided over a meeting of the Conference of Federal Reserve Bank Presidents in the Board Room. As Chairman of the Conference for 1986,he conducted a total of seven meetings. The Bank offered HelpFinders confidential service to officers and employees to assist with solutions to personal problems. In February, we became one of the first four Reserve Banks to support active trading of mortgage-backed securities. The January/February issue of the Bank's BusinessReviewcame out with studies of the business cycle and of 5 mkloý Employees fromother ReserveBankslearn TreasuryDirect procedures. showingsin southeasternPennsylvania, central New Jersey,and Delaware. The Federal Reserve System agreed to comply with the spirit of the Gramm-Rudman deficit reduction effort and, early in the year, this Bank cut $1.2 million from its 1986budget. Consumersboostedthe economyas retail salesregisteredbig gains over 1985, in somecasesmore than threetimes the national increase. Employment increased in all Third District states, with especially strong April Thru June Check information servicesfor paying banks were expanded and now include 20 institutions, up from 12 a year ago. First Vice President Dick Smoot chaired a Conference of First Vice Presidents' meeting at this Bank. Reserve Banks' budget policy was a key item on the agenda. Another conference meeting was held in the Bank in November. The Bank's Board held a joint meeting with the directors of the Boston Reserve Bank in that city. We began a special survey to evaluate our Fedline service and training. Fedline was introduced in 1985to link smaller institutions to this Bank's mainframe via personal computers. i The 41st annual series of field meetings opened in Danville, Pennsylvania. Eight more of these dinner meetings for commercial bank directors and officers were held around the District in April and May. Attendance averaged 150. jjlA I ii lI ý: A "meet-the-artist" receptionin the EastburnCourt. New Automated Clearing House services were installed on schedule. ACH volume continued to grow rapidly in 1986,and the Bank purchased additional hardware for further expansion. Federal judges from the Third Circuit came to the Bank for a daylong seminar on Economics and the Law, which we co-sponsored with the University of Pennsylvania. Onein a seriesof meetingswith bankers to explain new electronic services. First-line supervisors in various departments attended a series of seminars conducted by our Training Department. In April, the District's 100th bank holding company was formed; six years ago only 25 such companies existed here. ýý ..... t For the fourth year in a row, we hosted a reception for newly natural- ized citizens. After taking their oaths in the Federal Court House, they came to the Bank for coffee and sweets. Larry Murdoch, V.P. and Secretary, chaired the System Subcommittee on Public Information meeting in Seattle, Washington. The main order of business was educating investors about Treasury Direct. Fedline capabilities were extended to include receipt of Automated Clearing House payments. 6 ý' Clippingcouponsis one of our Fiscal Department services. :-ý TraceyHambeauof the Checks Department sortsreturnitems. 7 EdCoiaand MaryLabaree,leaders in this Bank'sdevelopment of the Treasury DirectBook-entry Securities System,discussthe department's operations. 10 The Human ResourcesDepartment began a series of meetings for employees to explain the impact of the new tax legislation on Bank benefits. At the November Board meeting, Ed Boehne and Dick Smoot reported to directors on the state of the Bank. They said that most objectives for 1986had been met and predicted that the Bank would achieve its net revenue targets for the year while keeping expenditures below targeted GrammRudman budget levels. It did. George Butler, Chairman of the First Pennsylvania Bank, completed his serviceas this Bank's representative on the Federal Advisory Council. The council, which consists of a prominent banker from each Federal Reserve District, meets four times a year with the Fed's Governors in Washington. Jim McGowan of Temple University,who doesn'tlet his wheelchair keep him fromskydiving,sailplaning to swimthe andattempting EnglishChannel,signs autographsas he helps kick off the Bank'sUnited Waycampaign. Dynamic Calculated Availability became a reality on November 14 at 5:00 p. m. This is a new program that provides many check depositors with improved credit availability at a lower price. It came about because we now can analyze each individual check in a mixed deposit according to the location of the bank on which it is drawn. Gus Adack, Senior V. P., reported that checks, Automated Clearing House, noncash, and cash operations all achieved full cost recovery in 1986,and the Bank as a whole did better than expected, thanks to costcontrol and volume growth, particularly in checks. We announced a new policy for pricing various consumer publications, and other Reserve Banks will be watching our experience in 1987. AnnieWardhelps a customerfill out a savingsbond purchaseapplication. On December 29, the Meridian Bank joined the Federal Reserve as a state member. In addition, four other banks applied for membership in 1986. Ted Crone, our top regional economist, took over as host for the MIT Enterprise Forum, which meets regularly in our auditorium to promote the development of new firms. NineteenHundred Eighty-Six ended on a positive note.All threestatesin the District had unemployment rates well below the national average.Even the manufacturing sectorwasshowing signs of improvement,and the Bank's survey of manufacturersshowedincreasesin employment. In the latter part of 1986,Manager Bill Reardon and more than 30 employees from eight departments were working to develop the Bank's new Integrated Accounting System. Scheduled for introduction in 1987,it will increase standardization among Reserve Banks which, in turn, should help the System accommodate interstate banking. In the CashDepartment, workerscountand verify currencyfrom banksin the 3rd District with the help of highspeedmachinery. Sales in the Savings Bond department boomed in 1986,up more than 30 percent. In the last week of October alone, Camille Ochman and her staff received more than 10,000applications to buy bonds. 11 Directors,Officers And Advisory Councils In late 1986, Nevius M Curtis, chairman and chief executiveofficer of Delmarva Power and Light Co. of Wilmington, Delaware, was appointed chairman of the board. He replacesRobert M Landis, whose term expired at the end of 1986. GeorgeE. Bartol, III, chairman and chief executive officer of Hunt Manufacturing Co. of Philadelphia, was named deputy chairman of the board, a position previously held by Mr. Curtis. 12 Two new directors also were selected for terms beginning January 1,1987. George A. Butler, chairman and chief executive officer of First Pennsylvania Bank and First Pennsylvania Corp. of Philadelphia, was elected a Class A director by large member banks. He replaced John H. Walther. Peter A. Benoliel, chairman of the board of Quaker Chemical Corp. of Conshohocken, Pennsylvania, was appointed to a term as a Class C director, filling the seat formerly held by Robert M. Landis. IncomingChairman NeviusM. Curtis,(left) andoutgoingChairman RobertM. Landis. Board Of Directors Chairman Robert M. Landis Partner, Dechert, Price & Rhoads Philadelphia, PA Deputy Chairman Nevius M. Curtis Chairman and Chief Executive Officer Delmarva Power & Light Company Wilmington, DE George E. Bartol, III Chairman, Hunt Manufacturing Company Philadelphia, PA Clarence D. McCormick President, The Farmers and Merchants National Bank Bridgeton, NJ Nicholas Riso President and Chief Executive Officer Giant Food Stores, Inc. Carlisle, PA Charles F. Seymour Chairman and Chief Executive Officer Jackson-Cross Company Philadelphia, PA 13 Carl E. Singley Dean and Professor of Law Temple University School of Law Philadelphia, PA Ronald H. Smith President and Chief Executive Officer CCNB Bank, N.A. New Cumberland, PA John H. Walther Chairman and Chief Executive Officer New Jersey National Bank Pennington, NJ DirectorsGeorge E. Bartol,III, and CharlesF. Seymour (seated,left to right), andCarlE. Singley, RonaldH.Smith, andJohn H.Walther (backrow). DirectorsClarence D. McCormickand Nicholas Riso. 14 Officers In official actions in 1986,Edward J. Coia was promoted to Vice President; Eugene E. Hendrzak became Assistant Vice President, Accounting; Theodore M. Crone and Robert H. DeFina both were named Research Officer and Economist; Richard A. Sheaffer was promoted to Securities Operations Officer; Mary Labaree was named Assistant Vice President, Treasury Direct; and Marie Tkaczyk was appointed Systems Development Officer, Computer Services. J. Warren Bowman, Jr.,joined the Bank as Vice President of Automation Planning and Administrative Services. In new official assignments, Vish Viswanathan became Vice President, Check Operations; James B. Duffy was named Vice President, Cash Operations; and Judith H. Helmuth became Quality Assurance Officer, Business Planning and Development. Edward G. Boehne President Richard L. Smoot First Vice President Konstanty G. Adack Executive Vice President Thomas K. Desch Senior Vice President and Lending Officer Donald F. Doros Senior Vice President James F. Gaylord Senior Vice President Hiliary H. Holloway Senior Vice President and General Counsel Richard W. Lang Senior Vice President and Director of Research William H. Stone, Jr. Senior Vice President Ronald D. Watson Senior Vice President J. Warren Bowman, Jr. Vice President Edward J. Coia Vice President Peter M. DiPlacido Vice President James B. Duffy Vice President Ronald G. Foley Vice President Malcolm T. Humphrey Vice President Donald J. McAneny Vice President and General Auditor Lawrence C. Murdoch, Jr. Vice President and Secretary Terence B. O'Brien Vice President Lawrence C. Santana, Jr. Vice President Vish P. Viswanathan Vice President Jack P. Besse Assistant Vice President Robert J. Bucco EFT Services Officer James E. Bums Planning Officer and Assistant Secretary Theodore M. Crone Research Officer and Economist Robert H. DeFina Research Officer and Economist Robert A. Dobie Assistant Vice President Patrick L. Donahue Financial Services Officer Robert N. Downes, Jr. Applications Officer William Evans, Jr. Technical Services Officer Edward J. Fox National Account Officer Judith H. Helmuth Quality Assurance Officer Eugene E. Hendrzak Assistant Vice President Jerry Katz Assistant Vice President Alan L. Kiel Staffing and Development Officer Robert H. Klein Assistant Vice President Mary M. Labaree Assistant Vice President Thomas P. Lambinus Financial Accounting Officer Edward M. Mahon Assistant Counsel Frederick M. Manning Assistant Vice President and Community Affairs Officer 15 Stephen A Meyer Research Officer and Economist Janice M. Moulton Research Officer and Economist Joseph J. Ponczka Assistant Vice President Edward G. Rutizer Assistant Vice President Louis N. Sanfelice Assistant Vice President and Assistant Secretary John B. Shaffer Assistant General Auditor Richard A. Sheaffer Securities Operations Officer Ronald R. Sheldon Data Services Officer Charles J. Sullivan, Jr. Assistant Vice President JoAnne Tarnoff Automation Planning Officer Marie Tkaczyk Systems Development Officer Elizabeth S. Webb Assistant Counsel Bernard Wennemer Examination Review Of Officer Advisory Councils The advisory councils created by this Bank's Board of Directors facilitate our communication with vital sectors of the regional economy. Each council consists of 12 members drawn from throughout the District. The councils normally meet at least twice a year with President Boehne and other high-ranking executives from the Bank to exchange information and discuss problems and needs. There are now four advisory councils. The 1986membership is listed below. Credit Union Advisory Council Chairman Richard M. Stoops Manager Nylon Capital Federal Credit Union Seaford, DE Deputy Chairman Peggy J. Bosma Manager Letterkenny Federal Credit Union Chambersburg, PA Betty L. Baker Manager Delaware State Employees Federal Credit Union Dover, DE Joseph Duffy Manager Philadelphia Inquirer and Daily News Employees Federal Credit Union Philadelphia, PA Milton E. Grosmick President Kimble Federal Credit Union Vineland, NJ Carl W. Knowlden Manager WAT Federal Credit Union Williamsport, PA John Ladd Manager 609Area Federal Credit Union Moorestown, NJ Carolyn O'Brien Treasurer/Manager Princeton University Employees Federal Credit Union Princeton, NJ Michael R. Prettyman Treasurer Defense Activities Federal Credit Union Mechanicsburg, PA Glenn Stuart, Jr. President/General Manager Wybro Federal Credit Union Paoli, PA Charles T. Williams President Citadel Federal Credit Union Thorndale, PA Virginia Williams Treasurer/Manager Bridgeton Onized Federal Credit Union Bridgeton, NJ NonmemberBank Advisory Council Chairman John D. Wickert Chairman and CEO Dauphin Deposit Bank & Trust Company Harrisburg, PA Deputy Chairman Richard M. Linder Chairman and President The Drovers and Mechanics Bank York, PA Theodore D. Bessler President and CEO Garden State Bank Jackson, NJ John R. Beyer President and CEO Mid-State Bank and Trust Company Altoona, PA John R. Howell President First Valley Bank Bethlehem, PA Robert M. Hoyt Chairman, President and CEO SussexTrust Laurel, DE Roy T. Peraino Chairman and CEO Continental Bank Philadelphia, PA F. Parker Renelt President and CEO Citizens State Bank Forked River, NJ William F. Sharp, Jr. President and CEO Lenape State Bank West Deptford, NJ 16 Bernard J. Taylor, II Chairman and CEO Wilmington Trust Company Wilmington, DE David Tressler Chairman and CEO Northeastern Bank of Pennsylvania Scranton, PA RG. Zullinger President Farmers and Merchants Trust Company of Chambersburg Chambersburg. PA Small Business/ Agriculture Advisory Council Chairman John H. Wright Wright's Motor Sales Company of Hazleton Hazleton, PA Deputy Chairman Donald Lynch Animal Health Sales Selbyville, DE Roy L. Bomberger Bomberger's Store, Inc. Elm, PA Sandra Graffius Milroy Enterprises, Inc. Sinking Springs, PA Joseph R Hartle, Jr. Lonely Spot Farm Bellefonte, PA Donald G. Hershey Hershey Farms Lancaster, PA Willie Johnson Fidelity Systems Philadelphia, PA Dean Pappas Clement Pappas & Company, Inc. Seabrook, NJ Ian Sydel Sydel's Egg Farm Hartley, DE Charles A. Wiggs Town and Country Sheet Metal Corp. Hightstown, NJ Robert A. Winner Pleasant Acres Dairy Farm Moorestown, NJ John Yahner Yahner Brothers Farm Loretto, PA Wendell T. Breithaupt President and CEO Trenton Savings Fund Society Trenton, NJ Robert J. Colacicco President South Jersey Savings and Loan Association Turnersville, NJ Armondo Felicetti President Fidelity Federal Savings and Loan Association Philadelphia, PA Edward L. Frampton President First Federal Savings and Loan Association Pottstown, PA David W. Lindstrom President Franklin Savings and Loan Association Salem, NJ Joseph J. McLaughlin President and CEO Beneficial Mutual Savings Bank Philadelphia, PA Oliver H. Reed, Jr. Assistant Secretary Peoples-Thrift Building and Loan Association Norristown, PA Robert H. Trewhella President First Federal Savings and Loan Association Harrisburg, PA Paul W. Williams President and CEO First Federal Savings and Loan Association Hazleton, PA Thri t Institutions Advisory Council Chairman Ralph O. Williams Chairman, President and CEO First Federal Savings and Loan Association of Delaware Wilmington, DE Deputy Chairman Stephen G. Harris, Jr. President and CEO Artisans' Savings Bank Wilmington, DE Lynn S. Baker President First Federal Savings Bank Hanover, PA 17 Statementof Condition ASSETS DECEMBER Gold certificate account Special drawing rights certificates Other cash 31,1986 DECEMBER 31,1985 $ 431,000,000 162,000,000 20,397,852 $ 483,000,000 195,000,000 22,854,965 Loans and securities: Discounts and advances Federal Agency obligations United States Government securities Total loans and securities 178,250,000 250,690,569 154,362,000 288,124,345 6,327,830,175 $6,756,770,744 6,226,478,136 $6,668,964,481 Other assets: Cash items in processof collection Bank premises-net Operating equipment-net All other Interdistrict settlement account Total assets 596,827,502 46,842,992 14,978,258 535,849,077 (466,304,297) $8,098,362,128 532,997,108 48,284,412 14,136,161 458,415,701 (651,023,785) $7,772,629,043 LIABILITIES AND CAPITAL Note liabilities: Federal Reserve notes $5,513,225,564 $5,869,593,020 Deposits: Reserve accounts of depository institutions U.S. Treasury-general account Foreign All other Total deposits $1,944,852,395 0 6,900,000 8,334,284 $1,960,086,679 $1,136,476,114 0 7,350,000 28,147,423 $1,171,973,537 Other liabilities: Deferred availability cash items All other Total liabilities 381,505,200 70,613,685 $7,925,431,128 485,284,275 80,686,411 $7,607,537,243 86,465,500 86,465,500 82,545,900 82,545,900 $8,098,362,128 $7,772,629,043 ACCOUNTS Capital accounts: Capital paid in Surplus Total liabilities and capital accounts 18 Earnings and Expenses 1986 Current earnings: From U.S. Government securities From discounts, advances and miscellaneous sources From services to depository institutions Total current earnings 1985 $532,214,470 $580,130,971 20,900,972 13,582,924 27,488,236 $580,603,678 25,021,004 $618,734,899 Net expenses: Operating expenses (after deducting reimbursable or recoverable expenses) Cost of earnings credits Total net expenses $ 51,969,075 8,790,331 $ 60,759,406 $ 50,756,030 8,966,615 $ 59,722,645 Current net earnings $519,844,272 $559,012,254 $ 2,210,987 $ 3,391,633 90,648,998 59,292,121 3,225 $ 92,863,210 4,868 $ 62,688,622 $ 4,522,900 5,848,170 $ 3,747,700 5,869,244 Additions to current net earnings: Gain on sales of Government securities Gain on foreign currency transactions Miscellaneous nonoperating income Total additions Deductions from current net earnings: Assessment by the Board of Governors: Board expenditures Federal Reserve currency Loss on foreign currency transactions Miscellaneous nonoperating expenses Total deductions 00 Net additions Net earnings before payment to U. S. Treasury Dividends paid Paid to U. S. Treasury (interest on Federal Reserve notes) Transferred to Surplus, additions "Nonreimbursed Treasury services 19 5,913,742* $ 16,284,812 297,516 $ 9,914,460 $ 76,578,398 $ 52,774,162 $596,422,670 $611,786,416 $ 4,964,654 $ 4,852,310 587,538,416 3,919,600 $596,422,670 604,330,206 2,603,900 $611,786,416 Operating Statistics 1986 Millions of Dollars Loans to depository institutions Currency received and counted Coin received and counted Checks handled: U. S. Government checks All other Issues, redemptions and exchanges of U. S. Government securities Transfers of funds Food stamps redeemed Thousands of Items Processed Loans to depository institutions Currency received and counted Coin received and counted Checks handled: U. S. Government All other Issues, redemptions and exchanges of U. S. Government securities Transfers of funds Food stamps redeemed 'Unrounded data $ 5,701 13,199 169 1985 $ 5,003 12,290 162 23,919 665,726 25,413 579,663 3,888,293 5,527,775 421 2,457,929 4,753,287 434 1,344* 1,015,700 1,010,300 1,222* 988,400 944,300 29,500 803,500 29,100 720,000 14,500 3,200 86,300 13,800 2,600 99,300 Designby NGS Associates Color photography by John McGrail PhotographyInc. Black and whitephotography by Anne Griffith -McNally and Jane Hinkle Typesettingby TerryRussell Printed by the FederalReserveBank of Philadelphia