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https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis From the Boardroom looking Forward looking Backward Highlights of 1998 Directors 2 4 4 15 25 T A B l E OF C 0 N T E N T s l The Federnl Reserve l?)ank of Jan District, which includes the nine western Francisco is one of 12 regional Reserve states -- Alaska, Arizona, California, Hawaii, l?)anks which, together with the l?)oard of Idaho, tievada, Oregon, Utah, and Governors in \Jashington, DC., comprise the \Jashington -- Guam, American Jamoa, and nation's centrnl bank. the tiorthern Mariana Islands. As the nation's centrnl bank, the To serve this expansive region, the Federnl Reserve is responsible for making and Jan Frnncisco Reserve l?)ank has five offices: rnrr~ing out our nation's monetar~ polic~. It our head~uarters in Jan Frnncisco and also is a bank regulator~ agenc~, a provider offices in Los Angeles, Portland, Jalt Lake of wholesale priced banking services, and the Cit~, and Jeattle. E.ach office provides fiscal agent for the United Jtates Treasur~. financial services to the banking institutions The Federnl Reserve l?)ank of Jan Frnncisco serves the Twelfth Federnl Reserve https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in its locale. F R 0 M T H E B 0 A R D R 0 0 M 2 From left, Nelson C. Rising, Deputy Chairman (1999); Cynthia A. Parker, Deputy Chairman (1998); Robert T Parry, President; John F Moore, First Vice President; and Gary G. Michael, Chairman. Last ~ear was an important one for "to provide for the establishment of the Federal Reserve P-:>ank of Jan Francisco Federal reserve banks, to furnish an elastic in that we both celebrated our histor~ currenc~, to afford means of rediscounting and looked toward our future. The ~ear commercial paper, to establish a more 1998 marked the 85th anniversar~ of effective supervision of banking in the the establishment of the Federal Reserve United Jtates, and for other purposes." J~stem. It was December 23, 1913, when Further legislation has clarified and President \Joodrow \Jilson signed into supplemented these original purposes law the Federal Reserve Act. The Federal through the ~ears, but our underl~ing Reserve Act stated that its purposes were goals remain. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This bank has a long histor~ of [Retired], Pacific Gas and E:.lectric Co., outstanding accomrlishments. During 1998 Jan Francisco, CA); on the Los Angeles we once again reached imrortant milestones branch board, its Chairman, Anne L. that ~ou will read about in this Rerort, and E:.uans (Chairman, E:.uans Hotels, Jan Diego, we assured our orerntional readiness to CA), and Jterhen G. Carrenter (Director, enter the next centur~. California United bank, E:.ncino, CA); on Our directors rrouided us with the Portland branch board, its Chairman, inualuable information and leadershir Carol A. Vhirrle (Prorrietor, Rocking C throughout the ~ear. Their inderendent Ranch, E:.lkton, OR), and Thomas C. assessment and knowledge of economic Young (Chairman, tiorthwest tiational and financial conditions throughout our bank, Vancouuer, VA); on the Jalt Lake District are essential to the formulation Cit~ branch board, its Chairman, of monetar~ rolic~. Ve thank them all Richard E:.. Dauis (President and CE:.O, for their contributions. In rartiwlar, we want to exrress Jalt Lake Conuention and Visitors bureau, Jalt Lake Cit~. UT), and Ro~ C. tielson our sincere thanks and arrreciation to (President [Retired]. bank of Utah, Ogden, those directors and aduisor~ council Utah); on the Jeattle branch board, members who retired from Federal Reserue Constance L. Proctor (Partner, Alston, seruice at 1998 ~ear end: on the Head Courtnage, Proctor & bassetti, LLP, Office board, its Derut~ Chairman, Jeattle, VA); and the Twelfth District C~nthia A. Parker (E:.xecutiue Director, Member of the Federal Aduisor~ Council, Anchorage tieighborhood Housing Dauid A. Coulter (Chairman and CE:.O Jeruices, Inc., Anchorage, Alaska), and [Retired]. bankAmerirn Corroration, Jtanle~ T. Jkinner (Chairman and CE:.O Jan Francisco, CA). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Gar~ G. Michael Robert T. Parr~ Chairman President 3 L *Year 2000 Read,ness Dlsclosure 0 The countdown is on for 01/01/ 0 K 2000 -- the start of the new centur~. l On the last da~ of 1999 celebrants N around the world will wait for the stroke G of midnight with a mixture of excitement, F 0 R w curiosit~. and treridation. Jome will greet the new ~ear at rarties rlanned Un-ited. States ~gal cod.e doe:9 not SP, ec-i an off-ic-ip.l abonal ca1en ar -- yse ot t e Gregonan ~alendar -in t e U.S. stel]ls tr~m an Act o the Br-itjsh. Par -iarent -i1> 1 51 wh.-ich. spec-i -ie use ot t e Gre2ono.t1 ca elJ. ar -in Engfanct and h.er colonies. For the Federal Reserue the concern ~ears in aduance, while others will be is not onl~ to be certain that our internal A sitting in their offices wondering whether R D s~stems are Y2K comrliant, but also that we the~ started rlanning for enough in fulfill our charter as a regulator of financial aduance. \Jill the much-ball~hooed institutions and as the nation's mone~ Y2K comruter meltdown occur? manager. Jome critical tasks spelled out in the Federal Resen;e's charter are to ensure 2000AD 4 Y2K Computer Glitch L 0 0 K I N G B A C K What was the country like the First Transatlantic Wireless Message, 1901 Prosperity had returned to the country last time people were waiting for the after the election of President William calendar to turn to a new century? McKinley of Ohio in 1896. Even the What was it like to live in America on government was prosperous with the New Year's eve 1899, and what was on Treasury showing a $46 million surplus the minds of people as they waited to of income over expenditures. Thus, the welcome 1900? period came to be referred to variously as December 31, 1899, was a snowy Sunday night in New York City, but that couldn't put a chill on the optimism and eagerness many residents felt as they anticipated the new century. Times were good. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Jh.e word. "calend.ar" comes t~EOlfl th.e Ro11J.an terl)l a1$nd.a-:," wh.i' ch. reters to t e tJ std yo each mfontki Ka.fen ae li; d.erlved. rom tn.e Lat-in "calare" -0 1-nnounce solemnly, to call 1 out. safet~ ar1d smmdr1ess iYl the orerntior1 of fir1ar1cial ir1stitutior1s, to rrouide stabilit~ iYl fir1ar1cial markets, ar1d to mair1tair1 the smooth fur1ctior1ir1g of the r1ation's ra~mer1ts s~stem. It's hard to imagir1e that back ir, 1913, wher1 members of Congress emrowered the Federnl Reserue J~stem with these resronsibilities, the~ could haue enuisior1ed a da~ wher, the fir1ar1cial s~stem would be threater1ed more b~ outdated comruter code than b~ baYlking rar1ics. P-:>asirnll~. it's just that -- outdated comruter code -- that sits at the root of the 1800AD 1900AD 5 the Age of Opt1m1sm, the Age of 90,400. Seattle and Salt Lake C,ty Conf,dence, and the Age of Innocence. boasted popul at,ons of 80.700 and There were 45 states, and the populatfon 53,500, resped1vely. of the nat,on was 76 mm10n and grow,ng rap1dly. Amenca was already becom1ng the "melt,ng pot" w,th one-thfrd of Hs res1dents fore1gn born or ch,ldren of fore1gn born. The center of the country was st,11 def1n1tely eastward wlth nearly 3,500,000 people l1v1ng 1n New York. San Franc1sco had only 342,700 res1dents and Los Angeles had 102,000. Portland was not far beh,nd wlth https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ther~is spme d.ebate whet r he 21st centu adua fy teglns lJL 2008'or 2001. Heca:q.se there is no yej1.r "O" in tile Gregorian _s:alendar, th.e 1st century b]iegan i?tA.D.1. Foll~~ing t e mat emahcs, eJJ.cn century e2.ins with '01 (1801J 190D and. end.s with '00 (1900, 200~, indicating that t e 2,lst 1 eg1ns century actually January 1, 2001. e th.}'nk of calend.J!TS as ct11a and. sc1entitlc. In uth. they art: merely a soc1any,agreed uponf.y~tem of kee111ng ,-ccouni o . b;,ne. C'J1.lendars torm~ basJs tor plan~1ng agr1cu_ltur'!-I, h.u1J..bng, a11d m1itrabon cycles; for dfy1ni1:lot1rnd. progno~b.cabon~and or mJ1nta1n1n2..cY.c•~s o reHg1ous and c1v1I events. ~ears -- "98" for 1998 instead of "1998" -to ortimize srace on uer~ exrensiue mainframe rrocessors. Thus, 2000 ma~ be misrnlwlated b~ the electronic brnin as 1900. In that rnse the software would not be able to rerform certain functions or would rroduce erroneous results. This has the rotential to affect not onl~ mainframe and Y2K rroblem which, derending on the newsrarer ~OU read, ma~ cost <AS much rersonal comruters, but also machiner~, <AS $860 billion worldwide to fix. Until recent!~, comruters haue trnditionall~ used two-digit numbers, rnther than four-digit, to rerresent arrliances, sewrit~ s~stems, and other deuices with embedded microchirs. The fix is not simrle, obuious, or inexrensiue but wn be done successfull~. 1700AD 6 Rosetta Stone found, 1799 An edHor,al 1n the January 1. San Francisco Chronicle, ,n ,ts December 1900, New York Times procla,med, 31.1899, ,ssue, reported, "The f,nanc1al "The year 1899 was a year of strength and stab,l,ty of San Franc,sco, the wonders ... ,n bus1ness and produdfon. money center of the Pac,f,c Coast, are seen It would be easy to speak of the 12 months iust passed as the banner year were we not already conf,dent that the d1st1nd1on of h,ghest records must presently pass to the year 1900 .... The outlook on the threshold of the new year 1s extremely br,ght." The v,ew ,nto the 20th century from the West Coast was equally hopeful. The https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Most calend.ars count fro111 a "zero" yefr assoc1ated w1th. an h.jstonca or lege1.1d.atY ev,,ent. Th.e Gregor1an calenp.a.r, or e~atJlp1~. mea1ures bme rom th.e b1rth. of Ch.r1st. However, . 1·t cont a1ls np ,,yejlT zero,, -Ch.nst' s e~th. 1s dated. A.D. 1, d1rectly ol ow1ng 1 B.C. A time per10 fro~ 10 J3.C. to A.D. IO would, th.eretore, span 19, not 20, years. It re~uires tedious se<Arching through resources needed to re<Ach comrli<Ance, comruter code, much of it written in modif~ing rrogrnm code, testing <All s~stems outd<Ated lcmgu<Ages b~ rrogmmmers who (including contingenc~ rl<Ans), <And, fin<AII~, m<A~ h<Ave long since retired. imrlementing the urd<Ated s~stems. A Pl<Anning for the ~e<Ar 2000 beg<An critiwl rh<Ase of the rroject is testing -- throughout the Federnl Resen;e J~stem in intern<AII~ <And extern<AII~ with customers, 1995, when t<Asks were defined <And <A vendors, <And other seruice surrliers such timeline w<As est<Ablished to ensure th<At <AS utilities, trnnsrort<Ation rroviders, <And <An~ necess<Ar~ modifiwtions would be environment<AI s~stems. The Reserue m<Ade to our intern<AI s~stems to en<Able P-)<Anks now h<Ave comrleted the renov<Ation them to function norm<AII~ over the centur~ <And testing of our intern<AI s~stems, <And d<Ate ch<Ange. Ke~ sters in the rrocess we <Are s<Atisfied th<At <All fin<Anci<AI service include <Assessing the score of ch<Anges <And <Arrliwtions of the Federnl Reserue <Are Y2K 7 Bank of England established, 1695 to be be Her than ever before. The banks have 1ncreased the,r resources wonderfully, the ga,n ,n the 1ast four months be,ng over $8,800,000." Th.is [oma.ly stems from th.e fa.ct t a.t R~otqa.n ,n-ymera.ls (-in use w en t e ~a.s1s tor our mod.eJ:n ca. ela.a.T wa.s ~sta.litjsh.e ) o not -includ.ef zero. Th.e w ,'!1e concept o zero a.s 4 nuE.oeT wa.~o p.nRopul~r .t a.t -intro ucti~n 1n th.e M1ddl e Age-, p Arf.b1c .JlUm~ra.ls met w1tlt l_png- -iv~d. hP-sHlify, p-a;,-ima.r-ily due to the a.lien zero. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis First Welfare Program, 1601 e e~sur-in2 tjme is compl-icatea y thf fac'f that the exp.ct ngt of the "tro -ical ye r," ase 9ntth.e Ea.rtf::•, 1,!vofution around t e Sun and tne -intervjll ,,t}Veen succe,:;s-ive arrivals ot the Sun at the vernal equinox, -is unknown. J~stem has srearheaded an extensiue awareness and edurntional rrocess. Communirntion is a ke~ element of the Federnl Reserue effort to ensure YJanking industr~ readiness for Y2K. Fed read~. Testing arrlirntions with derositor~ rerresentatiues meet regular!~ with other institutions will continue throughout 1999. regulators and trnde associations to assess In addition to read~ing its own rrogress, share information, and focilitate s~stems, the Federnl Reserue J~stem is information dissemination. A Centur~ Date working close!~ with other regulators and Change (CDC) weYJ site at www.frhsforgl derositor~ institutions to ouersee the fiserviceslcdcl rrouides immediate, ur-to- rrerarntions of the twnking industr~ as date communirntion regarding the rroject. a whole. To focilitate this rrocess, the The Fed regular!~ communirntes with lSOOAD 1600AD 8 Most people -- more than 60 There were vast differences in percent -- lived on farms or in rural lifestyle between those on the farm and areas. But the move both to the cities those in the city. And it wasn't easy and westward was underway. Although to travel between the two. Few were most workers were still employed adventuresome or wealthy enough to in agriculture, manufacturing spend about $1,500 for an automobile. employment was increasing quickly. The bus and truck were not yet In 1898, for the first time the U.S. invented. The railroad and the horse exported more manufactured goods and wagon were still the main forms of than it imported. "Big business" was transportation. Some 193,000 miles of beginning as smaller companies were railroad track crisscrossed the country being acquired by industry giants such while there were only about 150 miles as Amalgamated Copper, and U.S. Steel. of paved highway. A town not on the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis fincrncial institutions in the United Jtates via newsletters designed to guide constituents through a maze of data on the subject and provides updates and information about resources, problems, and solutions. A booklet, :fmall P-:>usiness and the Year 2000," was produced for depositor~ institutions to distribute to their customers. Institutions which have electronic relationships with the Fed receive regular bulletins alerting them to information such as timelines, details of testing, and information resources. 9 Columbus' Voyage, 1492 Public Banking, 1407 railroad was virtually remote. City If you wanted to ride a subway, you dwellers could take the electric trolley, would have to go to Boston, while New which expanded the radius of the city York and Chicago offered elevated to outlying residential areas and made railroads. Once you got to the city, you its center somewhat more accessible. might see some incandescent lights, The "tropjcal year" £onsi,ts of a fr,-.c'bona num er o d.1-Y,s,. the ex~ct nutn er o wti1c11 rema1ns unknown !~»P.roximately 365.24219). Wlille most other measurements allow larger unit1 to cortain $?Xact lJ.U;tnbers o smaller units Ca d,ollar is exactly toq c.ents{) bme measur±ew,ent1 1s1;,base uppn a pre- ~.tinea., t oug indetermina le, num er. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis but, most likely, gas street lights, and city homes of only the most weal thy were electrified. The tallest building in the country was the Ivins Syndicate Building in New York, rising 29 stories. New York, Chicago, and Philadelphia each had more than a million residents. Tht; Inte.rnat-igp.al Date Ljne -is 1-n 1mag1nary hn-: loc,-t~d more than 1,200 rarticirants attended 16 halfway around.clthe globe fro:qi th.e Pr-ime Mi• -ian. East of the line -it -is one ay earHer th.an to the west, so t af a person cross-ing tlie -ine east to wes.J: ga-ins, OT repeats, one aay. wh-ile ,- person cross!~.2 }Vest to east loses one day. Wlthou~ th-is d.ate change, ReTSQni trave11ng c1:roun~ the glo el,-inifc_pnslstent d1rectlon wo~I e o local t-ime by ex1ctly one ay upon return to the-ir starting po-int. seminars in 10 locations to recei1Je urdates Outreach efforts reached a reak in mid-1998 with a series of seminars offered and ask questions regarding regulator~ and readiness issues. Later in the ~ear, the Federal Reser1Je scheduled a national satellite teleconference, which reached 1Jiewers gathered in more than 200 locations nationwide to learn more arJout testing, liquidit~ issues, and contingenc~ rlanning and to ha1Je their questions answered. As rart of our regulator~ role, the throughout the countr~ for derositor~ Federal Reser1Je is concerned with making institutions. In the Twelfth District alone sure that Y2K rrorJlems don't ad1Jersel~ 1400AD 10 First Mariners Compass, 1302 In addHion to the disparity Medical problems were a great between rural and city life, there were concern. Influenza, pneumonia, vast differences between the wealthy tuberculosis, diphtheria, and typhoid and the poor, and social problems such as child labor, slums, and disease were emerging as industry and immigration boomed. The average American worker earned 22 cents an hour -- less than "L1apJ1ear:' -is a d.evice ~o1force calendcfTs 1,?1-to sync;J:a. w1tn the n1-tuta or trop1cp.l Y.ear, wh-ic conJ~·ns a tT.jlft-ional nu er ot ys and 1s not a easWy a1v1~1 ~e uri-u. :rJt.ef;ttJ.f curr~ntly 1n use 1s st-ill o ·t by one day every 3,000 v.ear.:;: E~ery. year exactly d.-iv-is-ible by 41s a lec1:p ):e!\T e~cep_t..}'e4rs exactly.dJv1s-ib1e by l\JU: these ce1J.t~~I ye~Ts ~T~ l~t-p ;years only 1 xact y d.1v1s1ble Hy 400. ere ore, 1600 and. 2000 are lea]! years: 1700, 1800, and.19UO are not. fe1 $500 a year. But you could buy eggs for 12 cents a dozen, a sirloin steak for 24 cents a pound, and stop by the soda fountain for a 5-cent root beer Aoat, 10cent sundae, or 5-cent lemon phosphate. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Whil~ theTe are approx1Jt1ately,1a 40 calep.daTs 1n use 1n th.e WOT tpd.ay, th.e GTegona' ara-lcalenaf.T lf th.e cu-rrent woTl w1a.e .=;tandaTd Cl~lC calenap.T. Most oth.eTS~Te Te ig-ious alendaT , ex pt t e Is amic, ~hick ls t~e oficfa 1dy-ic ca endaT 1n sountnes aTouna. th.e PeTsian Gult. institutions' rroject rlans and rrogress as rart of our examination of risk management and sound l1usiness rrnctices. Contingenc~ rlanning is a crucial rart of our Y2K readiness rlan. This contingenc~ rlanning inuolues looking affect the safet~ and soundness of the l1e~ond automated s~stems and deueloring countr~·s financial s~stem. In conjunction a wa~ to keer orernting without wstomar~ with interngenc~ guidelines, we reuiew Y2K resources. It requires testing, more testing, readiness of l1anks, l1ank holding comranies, and refining uarious scenarios. The Fed's and other financial institutions. \Je contingenc~ and euent management rlans are haue estal11ished testing and readiness dedicated to l1eing al11e to resrond quick!~ to requirements and regular!~ reuiew unforeseen circumstances. 1300AD 11 Magna Carta Signed, 1215 were among the 1ead,ng causes of death. The average l,fe expectancy for men was 46.3 years and for women, 48.3 years. Wealthy people 1n the heart of a c,ty m1ght have runn,ng water, but those outs,de probably d,d not. The Amer1can d,et suffered s1nce transportat,on of fresh food was h,ghly 1mprad1cal. Most people were w,thout fresh fru,t and vegetables dur1ng the w,nter months. Ra,lroads had refr,gerator cars, but the home elech1c refr,gerator was yet to be 1nvented. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Th.e c5·nese ca.lend.a.T v-a.mes yea.Ts pa.-i -in ne 1{ 10 s-igns T~ a.t:el t:o\k~ ctme_:;e cor.a-ste a.tjop.s wit!t one ot 12 a.n1ma. s gt th.e Ch.1nese zod-ia.c. Th.1s pa.1T1ng cTea.tes a. 1t: Ja.npa.~1, 60::_yea.T 20l10, wil ta.ll 111 th.e -inese Y ea.T of th.e Ea.Tth. Ra.b -it. ~rs coin and wrrenc~ are rlaced into circulation and then euentuall~ returned to derositor~ institutions b~ merchants. Derositor~ institutions, in turn, shir the excess to their regional Reserue P-:>ank, where it is credited to their accounts. Another ke~ resronsibilit~ of the It is exrected that the holida~ season, Fedeml Reserue is ensuring that enough courled with the turn of the centur~, will wrrenc~ and coin are in circulation to meet cause the demand for coin and wrrenc~ to the rublic's demand. This demand t~ricall~ increase at the end of 1999. Jome indiuiduals changes with the leuel of economic actiuit~ ma~ choose to hold extm cash during the and with the seasons of the ~ear. For centur~ rollouer in case orernting rroblems examrle, during holida~ seasons additional should affect an~ retail ra~ment s~stem. 1200AD llOOAD 12 Public educat1on was becoming Communication was difficult. The more available, especially through the high telephone was not yet in widespread use, school level. Nearly all states outside the typewriters were scarce, and there was South had compulsory educat1on laws by no such thing as a radio. Magazines and 1900, and the na8onal rate of illiteracy newspapers comprised what then served had declined from 20 percent in 1870 as mass communication. There were to 10. 7 percent in 1900. Wages for the about 5,000 magazines, most with small average teacher were $325 per year. circulation. But the daily circulation of Joseph Pulitzer's New York World newspaper regularly exceeded one T-ime -is th.e most va.lua.ble th.-ing a. ma.n ca.n spend. Th.eoph.Ta.stus Cd.. 278 B.CJ FTom D1Q_2enes La.e.rtjus, L-ives of .hm-inent Ph.-ilosoph.eTs https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis million. Traveling lecturers and Chaurauquas -- camp-like centers for education and entertainment -- were Wh.etheT the 21st crntury actually 9egi1J.!'l in th.e Y,f!aT 2000 OT 2O011s a d1 J?mtna th.at Tt;-ptains unTesolved.. Histaozy .PtteTs Io answeT to the elJate: lrgencl as it that, at tlie close of tlie 19t century, no consc:nsµs !!fl thef issue was eveaT Tea~hed. Th.eTe oTe, century ate c An2r paTties Tc\2_ea on the eve O ' bdth. 1900 ancr.I.9O1. 01Jer the 1998 le1Jel. This increClsed Clmount of wrrenc~ either in circulCltion or in 1/Clults Clt the Fedeml Reserve Clnd the P-:>ureClu will enClble us to fill our customers' wrrenc~ orders quick!~. As 1999 continues, the Fed will continue to test, ClnticipClte, plCln, Clnd do Also, since Clbout two-thirds of UJ. wrrenc~ ever~thing possible to pro1Jide for the smooth is held outside the United JtCltes, there mCl~ operntion of the pCl~ments sector Clnd the be increClsed foreign demClnd. To meet this SClfet~ Clnd soundness of the nCltion's bClnking demClnd, the Fedeml Reserve hCls increClsed s~stem. Ve helve tClken prudent Clctions to substClntiClll~ its fiswl ~eClr 1999 print order mClke sure thClt 01/01/2000 is trul~ the first from the P-:>ureClu of E.ngrn1Jing & Printing dCl~ of Cl hClpp~ new ~eClr Clnd new centur~. lO00AD 13 Worlds First Novel, 1008 Crusades Begin, 1095 popular sources of 1earning, as were feel 400 percent bigger in 1900 than he libraries. By 1900 there were more than did in 1896, bigger intellectually, bigger 1.700 libraries in the United States with hopefully, bigger patriotically." collections of more than 5,000 volumes. At the dawn of the 20th century, most Americans were filled with optimism, delight, and fascination with the new inventions that opened worlds Tlt.etiTst clay of the yeaT 2000 o~ t e GTegoTia;n cale11d.a1; as it w1 1l ook on vanous calena.aTs: and made tasks easier, and confidence Mayan: that opportunities for success would Islimic: H,:bTew: Tulic1;n: Pers1an: Eth.iopic: Cpptic: Ch.1nese: continue to be offered. In the words of New York Senator Chauncey Depew, "There is not a man here who does not https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 12.19.6.15.0, 9 Alt.au 8 Kankin 24 Ram~4an 1420 23 Teveth. 5760 19 DecemheT 1999 11 DevJ378 23 Tak1t-.5j1.s 1993 22 Kiy_ah.k 1716 Cycle 78, yraT lfi. month 11, day 2:, E X E C u T l V E C 0 M M l T T E E 14 From left, John E Moore, First Vice President; Jack H. Beebe, Senior Vice President and Director of Research; (seated) Robert T Parry, President; Terry S. Schwakopf, Senior Vice President; and Gordon R G. Werkema, Executive Vice President. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H l G th, s Report, prepar,ng for the century 1998 was ensur,ng that banks wHh H L l date change 1s a top pr1orHy wh,ch ,nterstate branch networks could G all of our operat,ng departments manage thefr reserve account and addressed 1n add,t,on to condud1ng f,nanc,al serv,ces relat1onsh1ps wHh thefr normal bus1ness 1n 1998. The the Reserve Banks on a coord,nated, mod1f1cat10ns and test,ng of our nat1onw1de bas,s through the new ,nternal systems are complete, and Interstate Branch Bank,ng account l we are now focused on test,ng and structure. Also 1n an effort to retest,ng both our cont,ngency and enhance the access1b1lHy and 9 9 event management plans. fund,onalHy of Hs serv,ces, the Bank As you have read elsewhere 1n An 1mportant 1nH1at1ve 1n H T s OF 8 p1l oted two "web-based" serv,ces Financial Services Prov1d1ng cost-effed,ve and dur,ng the year: Check Image, wh,ch enables f,nanc,al 1nstHut1ons to v1ew 1nnovat1ve serv,ces to the f,nanc,al d,gHfaed 1mages of the,r cleared serv,ces ,ndustry, the publ,c, and the Hems onl,ne, and Cash Order and U.S. Treasury 1s a key element of DeposH Not,f,cat,on. the San Frandsco Reserve Bank's One of the Bank's ongo,ng m1ss1on. From paper-based payment obied,ves 1s to promote the serv,ces l,ke cash d1str1but1on growth of eledron,c payments and check colled1on to eledron,c and eledron,c colled1on of checks. payment systems l,ke the Automated In 1998 the Bank expanded Hs Clear,ng House CACH) and the 1nnovat1ve Automat,c B,11 Payment large-dollar Funds Transfer and Program that ,nvolves maior ut,lHy Book-Entry SecurH,es Systems, the compan,es and the,r banks 1n Bank plays a key role 1n ensur,ng encourag1ng thefr customers to s1gn that the nat,on' s payment systems up for ACH debH as a means of b,11 are re l,abl e, eff,c,ent, and respons1ve payment. On the Check s,de, the to chang1ng needs. Bank ,ntroduced Front-End MICR, a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 15 He mf.ke.=- the n1Rh.t ~eP. • t:o the c!,av, al}d'm_a. es the y se~p 11J.to the n12 t: He s subord1natecline sun a.nfd.th.e va-oon, ma.k1ng ea.ch. o th.e111- JOUpl~ towards a. preorda.1ned time. The Koran 35:13 is to develop an automated system to enable creditor agencies to locate delinquent debtors and assist those agencies in withholding offsetting government payments to those debtors. The potential financial benefit of this initiative family of electronic products that is substantial; in limited enables depository institutions to implementation, the debt collected take advantage of the full benefits by TOP is already $5 million. of electronic check collection and 16 All offices of this Bank played a eliminate physical item processing, key role in informing and educating thus improving overall efficiency in the public about the redesigned the payments system. Series 19 9 6 $20 bill for several The Twelfth District is also months prior to its September leading a Systemwide effort to improve unveiling. Media events, school error resolution and customer service programs, speeches, and community by implementing a common check partnerships served to promote the adiustment processing system redesigned bill, which incorporates nationwide. Among other features, the latest anti-counterfeiting and Enterprise-Wide Adiustments will 1ow-vision features. facilitate consistent service levels across the System and streamline cross-district adiustments processing. When this proiect is fully implemented, it will be the largest distributed application in place in the Federal Reserve System. The Bank also spearheaded the Dp.rjn2. the 20 yea.rs wh.1ch. R1p ha.a. ,sle~ a.way on the ounta.1 1 e, eat !t'!~.Res t4Ven place. Wh1re R1p a.db~.en sleev1n.2JJea.ceful 1-y, a. fierce )Va.r·na.a &~en fought. Now he w ~s,!'-o lotJ.ger an Eng11snma.n 6ut an Amerlca.n. 'J:! Treasury Offset Program (TOP) for the U.S. Treasury. The goal of TOP https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ~a.sh.1n!l}- l.fYlng Jyp Vpn 1nklt 11ie Sketc Book 1820 In another milestone involving currency -- in this case historical -- the Bank's premiere collection of American and functions of the Federal Reserve to the public. A maior challenge of the year Currency, which was put on view in an was to respond to the currency exhibit in the lobby of the San Francisco crisis in Asia with research, policy office in 1997, was made available to briefings, speeches, and publications. visitors worldwide on the Bank's web Research analyzed the determinants site at www}rbsforglcurrencyl. The of the crisis and its severity as well audience for this magnificent collection as the spread of the crisis through can now include currency experts, financial market linkages. In historians, students, and the general addition, a staff member provided public, regardless of location; they can technical assistance to the Asia take a virtual tour of the exhibit -- 24 Development Bank Institute on hours a day, seven days a week -- and site in Tokyo for a month. explore the U.S. history which forms the context for the displays. The department, along with the Stanford Institute for Economic 17 Policy Research, presented a Economic Research Formulating and implementing conference on "Central Bank Inflation Targeting," bringing monetary and bank regulatory together some 100 eminent policies in a manner that keeps economists from academia, the the economy healthy are primary Federal Reserve, and foreign central functions of the Federal Reserve. banks to discuss the advisability and The Bank's Research area contributes methodology of explicit inflation to this process by continually studying and analyzing current economic and financial information which affects policy decisions. In addition, its outreach efforts play a key role in interpreting monetary policy and explaining the purposes https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Tim~ p-.;~sent and. time past A._Te ~otn~Th.aps pTesent 1n me htTe, time ture conb:inea in time past. Anf T.S. Eliot Four Oua.rtets, Burnt~orlon 1935 The Mayan cale11d.a.r -is ad:ua.lly based 0~ several calendars tha.1:, meshed tl~:h~T, ma.rkJhe movemen o the Su the l\1o~n, a.n '~nus1~~ M~ya.n d.1V1ne cale..nda.r, tne Tzolk1J1., pa-irs nu1J1bers one through 13 w-ittt 20 da.y ~mes to cr~ate !tl-ixtur~s s1tp.11ar t~ q~d.T da.ys, of the wrek ~a1n~ W1tn afes 1n a mon!h.: 1-lm-ix, -lk.etc., be-ing s-im-ilir to Sun y tTte 1st, Monday tlie 2n companies and their nonbank and foreign subsidiaries; state member banks and their foreign branches and subsidiaries; Edge Act and agreement corporations through which U.S. banking organizations conduct operations abroad; and U.S. activities of foreign banking organizations. targeting. Another conference, co- 18 The San Francisco Federal sponsored with the Federal Reserve Reserve Bank has implemented a Bank of Atlanta, addressed strategy that focuses resources in "Financial Modernization and areas of greatest need, investing in Regulation." It brought together new technology to increase overall Federal Reserve policymakers and effectiveness. The strategy al so staff as well as academic economists helps to retain and develop high to discuss the implications of performing staff, and strengthen modernization for the design of communication and outreach financial regulatory policy. with the banking community. At the end of 1998 there Banking Supervision and Regulation The Federal Reserve, along with were 70 state member banks in the District. There were also 201 holding companies with assets of $3 7 4.9 several state and federal agencies, billion, 106 agencies and branches supervises and regulates the nation's of foreign banks, 15 Edge and financial institutions to ensure their agreement corporation offices, financial soundness and compliance and 29 representative offices. with banking, consumer, and other Applications activity increased applicable laws. Specifically, the somewhat with 244 filings received Federal Reserve is responsible for in 1998, compared to 234 in 1997. supervising all bank holding Two maior cases last year which https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1nvolved cons,derable analys,s and staff aHent,on were the megamergers of Bank of Amer,ca wHh Nat,onsBank and Wells Fargo wHh Norwest. Appl1cat1ons to form bank hold,ng compan,es decreased by 8 from 35 to 27. Superv1s1on and regulat,on staff Tlte Mayan c-iv·ilf alend.ar, tlte Haab. conf-ists o 18 2O-claf on~hs, p y.s a s C\!i montl of ve ays. Th. co .01 ed ,.zol i11--H..aa.h cydeJnown a.s th.e Calendar Rouna., cover_:; a~prfo~-imately 52 years bJ?tore a o th.e cycles come back tfl t e~4me al-i211ment. It -is st-i l J.L~e ]by -peo__R~lee -in tlte Mex-ican h.1g ands. Tl e Maya.Jl Long Countrecor s penods longer than 52 years. lt also made s1gn1f1cant conh,butfons to the Bank's outreach efforts on behalf The program has 1ncreased lend,ng, of Y2K by part1c1pat1ng ,n numerous spurred the creat,on of small educat,onal sem,nars throughout bus,ness centers on several the D,str,ct. reservat,ons, 1mproved relat1onsh1ps Important fund10ns of the between bankers and tr,bal CommunHy Aff afrs unH are to representat,ves, and led to the encourage banks to work wHh adopt1on of un,form commere1al communHy organ1zat1ons to help codes by several tr,bes. meet the credH needs of the,r Other workshops presented communH,es and to monHor dur,ng the year encouraged banks' compl1ance wHh consumer ,nvolvement wHh nonprofH small proted,on laws relat,ng to cred,t. bus,ness ass1stance prov,ders and In keep1ng wHh th,s, they created ,nhoduced a new concept to prov,de and f ac,lHated a ser,es of Sovere1gn funds to match deposHs low-,ncome Lend,ng meet,ngs to address access customers place ,n spec,al sav,ngs to credH 1ssues for Nat,ve Amer,can accounts, help1ng them to reach tr,bes ,n W ash,ngton, Oregon, Idaho, spec,f,c f,nanc,al goals. and Utah. These sem,nars brought together tr,bal representat,ves, local bankers, and government and nonprofH representat,ves. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 19 B R A N C H 0 p E R A T l 0 N s 20 From left, Raymond H. Laurence, Senior Vice President-in-Charge, Portland; Andrea P. Wolcott, Vice President-in-Charge, Salt Lake City; Gordon R G. Werkema, Executive Vice President, Northern Region; and Mark Mullinix, Senior Vice President-in-Charge, Los Angeles. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis s u Volume (in thousands) Custod.y Services M M A R y Cash Services OF 1996 Currency notes paid into circulation 1997 4,317.704 4,626,649 1998 4,739,673 748,535 654,068 483,942 Other Treasury original issues 125 105 76 Book-entry securities processed 829 751 673 2,188,856 2,313,792 2,312,860 61,741 54,466 52,103 32,767 35,251 34,591 22,113 24,058 26,622 404,974 428,564 499,527 461 478 463 83 86 77 Food stamp coupons processed Securities Services Payments Services Check Services Commercial checks collected Government checks processed Return items processed Electronic Payments Services Wire transfers processed Automated clearinghouse transactions processed Discounts & Aavances Total discounts & transactions* Number of financial institutions accommodated* *Whole numbers Cnot in thousands) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 p E R A T l 0 N s 21 B A N K 0 F F l C E R s Robert T Pc,m~ President and Chief E..xewti1Je Officer John F. Moore First Vice President and Chief Orernting Officer Debornh J Jm~th Vice President Michael J. Jtan Vice President Jusan A. Jutherland Vice President Jack M. P-:>eebe Jenior Vice President and Director of Research Jarn K. Garrison Jenior Vice President Michael J. Ml,ffrn~ Jenior Vice President Terr~ J Jchwakorf Jenior Vice President D Kerr~ \Jebb Jenior Vice President John M. Parrish Genernl Auditor Robert D Mulford Vice President, General Counsel, and E..thics Officer 22 E..lizabeth R. Masten Vice President and Jecretar~ of the P-:>oard P-:>arbarn Contini Vice President Frederick T Furlong Vice President \Jilliam K. Ginter Vice President Reu1Jen Glick Vice President Jallie M. \Jeissinger Vice President and Director of Public Information Patricia A. \Jelch Vice President Jet Auer de Jarnm Director and Derut~ Genernl Counsel James M. P-:>arnes Director Kenneth R. P-:>inning Director Marold M. P-:>lum Director E..liot E... Giuili Director Andreas Mauer Director John J Hsiao Director Ann Marie Kohlligian Director E..lizabeth M. OJhea Director Da1Jid \J. \Jalker Director Kenneth M. Kinoshita Associate General Counsel John P. Judd Vice President and Associate Director of Research P-:>onnie R Allen Assistant Vice President Donald R. Lieb Vice President P-:>arbara J. P-:>eckman Assistant Vice President Ronald E... Mitchell, Jr. Vice President Armen P-:>e~lerian Assistant Vice President (As of December 31, 1998) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Jc;imes J. Cc;illc;ivwn Assistc;int Vice President Jc;imes J. Tenge Assistc;int Vice President Teresc;i M. ClArrnn Assistc;int Vice President E.liwbeth L. \.Jood Assistc;int Vice President Gc;iil A. Gc;in;e~ Assistc;int Vice President Keuin C. Alecw Check Processing Officer E.lc;iine G. Geller Assistc;int Vice President Angelc;i J. D'Alessc;indro* E.xc;imining Officer * On loc;in to the f:>oc;ird LolAiS ::/Kir" George Assistc;int Vice President Todd A. Glissmc;in Assistc;int Vice President E.llen M. rfomilton Assistc;int Vice President l:>euerle~-Ann t=fowkins Assistc;int Vice President l:>c;irbc;irn A. l:>ennett Corrornte Jtrnteg~ c;ind Deuelorment Officer Thomc;is R. l:>lArke AccolAnting Officer Richc;ird K. Cc;ibrnl Cc;ish Officer Peter K. C. Hsieh Assistc;int Vice President Lee C. Dw~er E.lectronic Pc;i~ments c;ind Fiswl Jeruices Officer Michc;iel E.. Johnson Assistc;int Vice President Alice Fc;irrell AlAtomc;ition ResolArces Officer Crnig I:>. KnlAdsen Assistc;int Vice President Joserh P. Mc;itte~ Resec;irch Officer Mc;irk E.. Leuonic;in Assistc;int Vice President l:>ric;in Motle~ Resec;irch Officer E.llsworth E.. LlAnd, Jr. Assistc;int Vice President Gc;ir~ P. Pc;ilmer lnformc;ition c;ind Technolog~ Officer Jo~ Moffmc;inn Mollo~ Assistc;int Vice President Dc;irren J Post Assistc;int Vice President Philir M. R~Gln Assistc;int Vice President \.J. Jtc;irr Jeegmiller Assistc;int Vice President Dc;iniel K. Jhc;iw Assistc;int Vice President Gordon J Tc;innlArn Assistc;int Vice President Glenn D RlAdeblAsch Resec;irch Officer Mc;irk M. Jriegel Resec;irch Officer l:>hc;irnt Trehc;in Resec;irch Officer Roxc;inc;i C. TsolAgc;irnkis Finc;incic;il Plc;inning c;ind Control Officer Mc;ir~ E.. \.JlAjek lnformc;ition c;ind Technolog~ Officer 23 B R A los Angeles Branch Mcirk L. MtAllil"lix Jel"lior Vice Presidel"lt Jimm~ F. Kcimcidci Assistcil"lt Vice Presidel"lt H Jecil"l J. RodrigtAez Vice Presidel"lt Mcirk E... Koegel Assistcil"lt Vice Presidel"lt 0 Robert G. \.Jile~ Vice Presidel"lt Dcile L. VciiAghcil"l Assistcil"lt Vice Presidel"lt Robert \.J. Re~logle Director Lil"ldci J. \.JesterschtAlte Assistcil"lt Vice Presidel"lt Mcirlci E... ~orowski Assistcil"lt Vice Presidel"lt Al"lthol"l~ P. Dcizzo Ccish Officer Robert C. Johl"lSOl"l Assistcil"lt Vice Presidel"lt Jtel/el"l E... JiAl"lg Check Processil"lg Officer N C F F l C E R s Jhernl"ll"l L. Mcick ~tASil"less Dellelo~mel"lt Officer Northern Region Gordol"l R. G. \.Jerkemci E..xewtille Vice Presidel"lt 24 Portlana e>rnnd1 Jeattle e>rnnd1 Rci~mol"ld M. LcitArel"lce Jel"lior Vice Presidel"lt Gcile P. Al"lsell Assistcil"lt Vice Presidel"lt Mcir~ E... Lee Assistcil"lt Vice Presidel"lt Mcirk A. GotAld Assistcil"lt Vice Presidel"lt Robert D Lol"lg Assistcil"lt Vice Presidel"lt L~l"ll"l M.Jorgel"lsel"l Assistcil"lt Vice Presidel"lt Robil"l A. Rockwood Assistcil"lt Vice Presidel"lt Kel"ll"leth L. Petersol"l Assistcil"lt Vice Presidel"lt Jalt Lake Cit~ e>rnncn Al"ldreci P. \.Jolcott Vice Presidel"lt Richcird ~- Mornsb~ Assistcil"lt Vice Presidel"lt Jed \.J. ~odil~ Assistcil"lt Vice Presidel"lt Thomcis P. McGrnth Assistcil"lt Vice Presidel"lt Gercild R. Dcillil"lg Assistcil"lt Vice Presidel"lt (As of December 31, 1998) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B Federal Reserve Bank of San Francisco 0 A Cnairman and Federal Reserve Agent Gar~ G. Michael Chairman and CE:_O Albertson's Inc. P-)oise, Idaho Jheila D. Harris Consultant Harris Consulting Litchfield Park, Arizona R D OF D l R Deput~ Cnairman /'ielson C. Rising President and CE:_O Catellus Development Corp. Jan Francisco, California Robert J. Atti~eh Jenior Vice President and CE_ 0 (Retired) Consultant Amgen, Inc. Thousand Oaks, California c. L~nn Caswell Chairman and CE:_O Pacific Communit~ P-)anking Group Laguna Hills, California Krestine Corbin President and CE:_O _./ierra Machiner~, Inc. Jparks, /'ievada \Jarren K. K. Luke Vice Chairman, President, and CE:_O Hawaii /'iational P-)ank Honolulu, Hawaii P-)~ron I. Mallott executive Director Alaska Permanent Fund Corporation Juneau, Alaska E C T 0 R s 25 l John V. Rindlaub President, /'iorthwest Region P-)ank of America Jeattle, \Jashington Federal Advisor~ Council Member \Jalter A. Dads, Jr. Chairman and CE:_O P-)anc\Jest Corp. Honolulu, Hawaii 9 9 9 B 0 A R D OF D l R los Angeles Branch Cnairman of tne e:>oar<J Lonnie Kerne President Karen Kane, Inc. Los Angeles, California Russell Goldsmith Chairman and CE.O Cit~ /fational P-)ank P-)everl~ Hills, California E C T 0 R s 26 l 9 9 9 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Lori R. Ga~ President Los Angeles tieighborhood Housing Jervices, Inc. Los Angeles, California John H. Gleason Jenior Vice President Del \Jebb Corrorntion Phoenix, Arizona \Jilliam D Jones Chairman, President, and CE.O Cit~Link Investment Corr. Jan Diego, California Liam E.. McGee President, Jouthern California P-)ank of Amerirn Los Angeles, California Linda Griego Managing Genernl Partner E.ngine Co. tio. 28 Los Angeles, California https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B 0 Portland Branch Cnairman of tne e,oard tianc~ \Jilgenbusch President Mar~lhurst Universit~ Mar~lhurst, Oregon Karla J Chambers Vice President and Co-Owner Jtahlbush Island Farms, Inc. Corvallis, Oregon A R D OF D l R E Ph~llis A. P->ell President Oregon Coast A~uarium tiewrort, Oregon Gar~ T. Duim Vice Chairman UJ P->ancorr Portland, Oregon Patrick P->orunda E.xewtive Director OtiAP->E..ti -- A tiative American P->usiness tietwork Portland, Oregon Gu~ L. \,Jilliams Martin P->rnntle~ President and General Manager Oregon's 12-KPTV Portland, Oregon President and CE.O Jewrit~ P->ank Coos P->a~, Oregon C T 0 R s 27 l 9 9 9 B 0 A R D OF D l R Salt lake City Branch CnCAirmCAn of tne e>oCArd P-:wrbarn L. \Jilsori Idaho arid Regiorial Vice Presiderit UJ\JE._/T P-)oise, Idaho Curtis D Marris Chairmari, Presiderit arid CE.O P-)arries P-)arikirig Co. Ka~sville, Utah R. D Cash Chairmari, Presiderit arid CE.O Questar Corporntiori Jalt Lake Cit~, Utah Jori M. Muritsmari, Jr. Vice Chairmari Muritsmari Corporntiori Jalt Lake Cit~, Utah Maria Garciaz E.xewtive Director Jalt Lake /ieighborhood Mousirig Jervices, Irie. Jalt Lake Cit~, Utah J. Pat McMurrn~ E C T 0 R s 28 l Presiderit First Jewrit~ P-)arik, Ii.A. P-)oise, Idaho 9 9 9 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis liaric~ J Morteriseri Vice Presiderit, Marketirig Zioris Cooperative Merrnritile Iristituti ori Ja It Lake Cit~, Utah https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B Seattle Branch Cn<Airm<An of tne e,o<Ard Richard R. Jonstelie Chairman of the board Puget Jound E.nerg~, Inc. belleuue, Washington Tomio Moriguchi Chairman and CE.O Uwajima~a, Inc. Jeattle, Washington 0 A R D OF D l R E bo~d E.. Giuan Jenior Vice President and CFO (Retired) The boeing Comran~ Jeattle, Washington Melen M. Rocke~ President and CE.O brooks Jrorts, Inc. bothell, Washington James C. Mawkanson Managing Director and CE.O The Commerce bank of Washington, /lA. Jeattle, Washington Peter M. Van Orren Chairman and CE.O Aduanced Digital Information Corroration Redmond, Washington bets~ Lawer Vice Chair and COO First /fational bank of Anchorage Anchorage, Alaska C T 0 R s 29 l 9 9 9 A D Cnairman P-:>aile~ "P-:>iff" J P-:>anwrd Jenior Vice President Allied Carita! Corrorntion Jan Francisco, California V l s 0 R y C 0 u N C l L Members P-:>arbarn P-:>r~ Director ATCOM/1/'iFO Jan Diego, California Paula R. Collins Chief E:_xewtive Officer \JDG Ventures, Inc. Jan Francisco, California Thomas t. Cleveland Chairman and CE:_O Access P-:>usiness Finance P-:>ellevue, \Jashington Paul E:_cke Ill Chairman and CE:_O Paul E:_cke Ranch E:_ncinitas, California 30 l 9 9 9 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E:_d P. Ma~ne President Utah AFL-CIO \Jest Valle~ Cit~, Utah Laura t. /'iaumes Vice President l'iaumes, Inc. Medford, Oregon Vice Cnairman Valter F. Pa~ne, Jr. President and CE.O P-)lue Diamond Growers Jacrnmento, California Members Lawrence J Okinaga Partner Ca rlsm ith P-)a 11 Honolulu, Hawaii Don M. "Duff' Ville~ President Ville~ Motors, Inc. P-)ountiful, Utah Peter H. Parm Chairman P-)oard of JurertJisors Fifth District, Count~ of Kern P-)akersfield, California Denice A. Young, CPA. President Young Real E.state Grour Torrance, California P-)ob L. Vice President P-)LV, Agribusiness Consultants Fallbrook, California Richard J Vaiden President Farmers lntJestment Comran~ Jahuarita, Arizona https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 31 San Francisco Office P.O. Box 7702 T San Francisco, California 94120 w E L F T H Los Angeles Branch P.O. Box 2077, Terminal Annex Los Angeles, California 90051 F E D E R A L Portland Branch P.O. Box 3436 Portland, Oregon 97208 Salt Lake City Branch P.O. Box 30780 Salt Lake City, Utah 84130 32 Twelfth District web site: R E www.frbsf.org s E R V E D l s T R l C T This Rerort was rroduced and written b0 Karen Flamme. Design and illustrations were created b0 Mark Hendricks. _/idebars and la0out were comrleted b0 D0lan Frederick. Color rnotogrnrh0 b0 Paul Jchulz. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis