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1 9 5 7 O P E R A T IO N S OP THE FEDERAL RESERVE BANK OF ST. LOUIS l H E OPERATIONS O F A R ESERV E BANK involve an almost unbelievable number of items and astronomical dollar totals. It is not unusual for one bank to process several million checks, coins, pieces of currency, bonds and other Rnancial claims in a single day with an aggregate value in billions of dollars. These activities contribute substantially to the eiBcient functioning of the economy, but they are meshed so smoothly into the banking structure as to attract little public attention. in the bank. The department handled 569 million pieces of currency and coin during the year, aggre gating $1,230 million. These were gains of 2 per cent and 1 per cent, respectively, from the previous year. The Fiscal Agency Department handled (issued, ex changed and redeemed) somewhat more Savings Bonds during 1957 than in 1956, but the total dollar volume of the bonds handled declined. The number and volume of other Government issues processed in 1957 were much greater than in 1956. During the year 1957 many activities of the Federal Reserve Bank of St. Louis continued to expand from the record levels reached in the previous year. The need for a few operations, however, moderated. The accompanying table presents a rough idea of the size and scope of operations during the year. During 1957 the bank transferred about $41 billion of funds. Although this was 2 per cent less than the peak amount in the year before, somewhat more serv ice was provided in terms of number of transactions, 136,000 as against a previous high of 133,000 in 1956. The activity in non-cash collections, which consists of handling such items as drafts, promissory notes, stocks, bonds and coupons, was higher in 1957 than during the previous year. The amounts of securities received, released and held by the Safekeeping Department of the bank were also greater during 1957. In addition the department clipped more coupons in 1957 than in 1956, but for a somewhat smaller dollar value. During the year 1957, securities were held for 95 per cent of the member banks and 47 per cent of the nonmember banks in the Eighth District. All securities held for nonm em ber banks were Savin gs Bonds or issues pledged as collateral to Treasury Tax and Loan Ac counts and to secure deposits of public money. Three activities of the bank are notable for their consistently large volume; they are check collection, currency and coin handling and Rscal agency opera tions. Processing of checks and other transit items continued to be the biggest single function of the bank in terms of number of employees. Both the num ber and dollar volume of checks processed, however, decreased from the peak reached in 1956, with the de cline centering in Government checks and postal money orders. The number of individual and business checks coming through the bank continued to grow. The drop in Government checks processed was due to a change in procedures by the Treasury Depart ment, which discontinued its paying operations at the Federal Reserve banks. Postal money orders continued to decline in use, a trend that has been going on for several years. When measured in terms of number of individual items handled, the Money Department was the largest Page 20 During 1957 the discount rate of the bank was changed twice. It was raised from 3 per cent to a level of 3% per cent in August, and it was reduced to 3 per cent again in November. The volume and number of loans to member banks were somewhat less in 1957 than during 1956, but about 8 per cent more member banks were accommodated. COMB!NED VOLUME OF OPERATIONS Many other tasks, which cannot be readily measured by statistics, were performed by the Federal Reserve Bank of St. Louis during 1957. Much effort went into gathering, processing and interpreting data on the economy to assist officers and directors of this bank (and others of the Federal Reserve System) in carry ing out their responsibility to adjust the supply, cost and availability of money and credit to the needs of the economy. AND LtTTLE ROCK BRANCHES iN 1 957 AND 1956 During the past year the Audit Department made periodic checks in all operating departments to verify the accuracy of the records and compliance with laws and regulations. The Accounting Department not only recorded all internal expenses and income, but also kept track of transactions with other Reserve Banks and those between this bank and district member banks. The Examination Department, under estab lished policy, made examinations of state member banks in the district. Further, operations of the bank ran more smoothly because of the efficient work of others such as person nel in the Planning, Machine Tabulation, Field Service and Purchasing Departments, the legal counsel, libra rians, cafeteria workers, guards, maintenance men, porters, cleaning force, telephone operators and garage men. During the year 1957, assets and liabilities of the Federal Reserve Bank of St. Louis showed only mod erate net changes. Following is a brief comparative statement of condition of the bank: A sse t: (In thousands of dollars) AT THE ST. LOUtS BANK AND THE LO U !SV !H E, MEMPHtS Number of Pieces Handled Checks (Total)................................... Cold CertiHcate Reserves.............................. Federal Reserve Notes of Other Banks Other C ash ..................................................... $ 952,089 17,588 25,649 U. S. Government Securities..................... Uncollected item s.......................................... Other A ssets................................................... Total A ssets............................................ 980,896 188,650 15,180 $2,180,487 ^1956^ $ 865,073 13,676 23,358 1,100 1,027,452 208,733 14,799 $2,154,191 1956 185,984,000 197,516,000 City Checks..................................... 30,185,000 28,347,000 Country Checks.............................. 114,625,000 110,593,000 Government Checks..................... 26,791.000 42,992,000 Postal Money Orders 14,383,000 15,584,000 Currency.............................................. 205,884,000 204,558,000 C oin....................................................... 362,840,000 355,360,000 Transfer of Funds 136,000 133,000 Non-cash Collections....................... 500,000 489,000 U. S. Government Interest Coupons 689,000 626,000 1,181 1,211 Discounts and Advances Securities Received and Released 170,000 148,000 Coupons Detached 318,000 317,000 . 7,042,000 7,012,000 Other Government Issu es............ 354,000 246,000 755,000 736,000 158,000 152,000 Checks Handled (Total).................. ^62,203,350,000 $64,102,854,000 City Checks.................................. 39,504,868,000 39,468,688,000 Country Checks.............................. 17,947,521,000 17,191,936,000 Government Checks..................... 4,496,416,000 7,171,032,000 Postal Money O rders.................. 254.545,000 271,198,000 1,196,109,000 1,187,789,000 U. S. Savings Bonds Issued, Exchanged and Redeemed Withheld Tax Depository Account Transactions Dollar Volume C oin....................................................... 33,751,000 32,227,000 Transfer of Funds.............................. 40,720,435,000 41,409,687,000 Non-cash Collections....................... 346,683,000 346,052,000 U. S. Government Interest Coupons 79,281,000 70,376,000 3,416,365,000 4,640,220,000 33,609,000 34,278,000 Discounts and Advances December 31, 1957 1957 o/ Coupons Detached....................... U. S. Savings Bonds Issued, Other Government Issues 639,526,000 757,675,000 10,385,248,000 7,933,886,000 LiabHities a n d C ap ita) Accounts Federal Reserve Notes (N et)....................... $1,226,564 $1,211,030 Member banks— reserve accounts . U. S. Treasurer— general account......... Other............................................................ Deferred availability item s......................... Other Liabilities............................................ Total Capital Accounts.............................. Total Liabilities and Capital Accounts 699,440 25,982 15,176 163,043 439 49,843 $2,180,487 699,664 31,062 18,498 146,316 540 47,081 $2,154,191 Employment at the bank and branches totaled 1,114 at the end of 1957 compared with 1,145 at the end of 1956. Reductions in personnel occurred at St. Louis and Memphis, partially offset by slight in creases at Little Rock and Louisville. Page 21 DtRECTORS A ND OFFICERS O F THE FEDERAL RESERVE BANK O F ST. LOU!S February 5, 1958 Oncers Directors Pierre B. McBride, Chairman the Board Delos C. Johns, President Guy S. Freutel, First Vice President Howard H. Weigel, Vice President and Secretary Joseph C. Wotawa, Vice President Dale M. Lewis, Vice President William J. Abbott, Vice President George E. Kroner, Vice President Earl R. Billen, Assistant Vice President Willis L. Johns, Assistant Vice President Stephen Koptis, Assistant Vice President Woodrow W. Gilmore, Assistant Vice President John J. Hofer, Assistant Vice President Marvin L. Bennett, Assistant Vice President W. E. Walker, Assistant Vice President Paul Salzman, Assistant Vice President Janes M. Geiger, Assistant Vice President Orville O. Wyrick, C/tie/ Examiner Wilbur H. Isbell, Assistant Chie/ Examiner Gerald T. Dunne, Cotmse? and Assistant Secretary George W. Hirshman, Genera? At/ditor Pierre B. McBride, Chairman J. H. Longwell, Deputy Chairman S. J. Beauchamp, Jr. H. Lee Cooper Kenton R. Cravens J. E. Etherton Harold O. McCutchan Leo J. Wieck Jesse D. Wooten UTILE ROCK BRANCH T. Winfred Bell, Chairman Robert H. Alexander Donald Barger J. W. Bellamy, Jr. E. C. Benton J. V. Satterfield, Jr. Waldo E. Tiller Fred Burton, Vice President and Manager Sherley C. Davis, Cashier Clifford Wood, Assistant Cashier W. J. Bryan, Assistant Cashier LOU<SV!LLE BRANCH David F. Cocks, Chairman Philip Davidson Magnus J. Kreisle W. Scott McIntosh J. D. Monin, Jr. Merle E. Robertson John G. Russell Donald L. Henry, Vice President and Manager John W. Menges, Cashier L. K. Arthur, Assistant Cashier Clarence J. Woertz, Assistant Cashier MEMPHtS BRANCH Frank Lee Wesson, Chairman John E. Brown J. H. Harris S. L. Kopald, Jr. Simpson Russell John D. Williams John K. Wilson Darryl R. Francis, Vice President and Manager E. Francis DeVos, Cashier H. C. Anderson, Assistant Cashier Benjamin B. Monaghan, Assistant Cashier The following designations and appointments were made during 1957: beginning January 1, 1958. director since March 1954. The Board of Governors of the Federal Reserve System redesignated Mr. Pierre B. McBride, Louis ville, Kentucky, as Chairman of the Board of the Federal Reserve Bank of St. Louis and Federal Reserve Agent at the bank for the year 1958. Mr. McBride is President of Porcelain Metals Corporation, Louisville, Kentucky. He was appointed a Class C Director of the bank in January 1957 and designated Chairman and Federal Reserve Agent for that year. During the six years immediately preceding his appointment to the St. Louis Board, Mr. McBride served as a director of the Louisville Branch of the Federal Reserve Bank of St. Louis. The Board of Governors of the Federal Reserve System made the following appointments to the Boards of Directors of the branches: Mr. J. H. Longwell, Columbia, Missouri, was ap pointed by the Board of Governors as Deputy Chair man of the Board of Directors of the Federal Reserve Bank of St. Louis for the year 1958. Mr. Longwell, a Class C Director of the bank since January 1957, is Director of Division of Agricultural Sciences at the University of Missouri. The Board of Governors also appointed Mr. Jesse D. Wooten, of Memphis, Tennessee, a Class C Direc tor of the bank for a three-year term beginning Janu ary 1, 1958. Mr. Wooten is Executive Vice Presi dent of the Mid-South Chemical Corporation in Mem phis. As a director of the bank he succeeds Mr. Joseph H. Moore, Charleston, Missouri, whose term expired at the end of 1957. During the year two directors were elected by the member banks in the Eighth Federal Reserve District: Mr. H. Lee Cooper, President, Ohio Valley Na tional Bank of Henderson, Henderson, Kentucky, was elected by member banks in Group 2 as a Class A Director of the Federal Reserve Bank of St. Louis for a three-year term beginning January 1, 1958. He suceeded Mr. Phil E. Chappell, of Hopkinsville, Ken tucky, whose term expired at the end of last year. Mr. Cooper began his banking career in 1929 in Smith Mills, Kentucky. He is a former director of the Louisville Branch of the Federal Reserve Bank of St. Louis, having served during the years 1946 through 1951. Mr. Leo J. Wieck, Vice President and Treasurer, The May Department Stores Co., St. Louis, Missouri, was re-elected by member banks in Group 1 as a Class B Director of this bank, for a three-year term Mr. Wieck has been a Mr. Robert H. Alexander, Farmer, Scott, Arkansas, was appointed a member of the Little Rock Branch Board for a three-year term beginning January 1,1958. Mr. Waldo E. Tiller, President, Tiller Tie and Lumber Company, Little Rock, Arkansas, was ap pointed a member of the Little Rock Branch Board effective January 1, 1958, for the unexpired portion of a term ending December 31, 1958. Mr. Philip Davidson, President, University of Louis ville, Louisville, Kentucky, was reappointed as a member of the Louisville Branch Board for a threeyear term beginning January 1, 1958. Mr. Frank Lee Wesson, President, Wesson Farms, Inc., Victoria, Arkansas, and President, Missco, Inc., Osceola and Blytheville, Arkansas, was appointed a member of the Memphis Branch Board on October 3, 1957, for the unexpired portion of a term ending December 31, 19j?8. Mr. S. L. Kopald, Jr., Executive Vice President, Humko Division, National Dairy Products Corpora tion, Memphis, Tennessee, was appointed a member of the Memphis Branch Board for the unexpired por tion of a term ending December 31, 1960. The Board of Directors of the Federal Reserve Bank of St. Louis made the following appointments to the Boards of Directors of the branches: Mr. E. C. Benton, President, Fordyce Bank and Trust Company, Fordyce, Arkansas, was reappointed as a member of the Little Rock Branch Board for a three-year term beginning January 1, 1958. Mr. J. W. Bellamy, Jr., President, National Bank of Commerce of Pine Bluff, Pine Bluff, Arkansas, was appointed a member of the Little Rock Branch Board for a three-year term beginning January 1, 1958. Mr. W. Scott McIntosh, President, State Bank of Hardinsburg, Hardinsburg, Indiana, was reappointed as a member of the Louisville Branch Board for a three-year term beginning January 1, 1958. Mr. John G. Russell, President, The Peoples First National Bank and Trust Company of Paducah, Page 23 Paducah, Kentucky, was appointed a member of the Louisville Branch Board for a three-year term begin ning January 1, 1958. Mr. John E. Brown, President, Union Planters Na tional Bank of Memphis, Memphis, Tennessee, was appointed a member of the Memphis Branch Board on September 12, 1957, for the unexpired portion of a term ending December 31, 1957. Mr. Brown was reappointed as a member of the Memphis Branch Beard for a three-year term beginning January 1, 1958. Mr. Simpson Russell, President, The National Bank of Commerce of Jackson, Jackson, Tennessee, was ap pointed a member of the Memphis Branch Board for a three-year term beginning January 1, 1958. The Board of Directors of the Federal Reserve Bank of St. Louis also appointed Mr. William A. Mc Donnell, Chairman of the Board, First National Bank in St. Louis, St. Louis, M issouri, a member of the Federal Advisory Council to represent the Eighth Federal Reserve District for the year 1958. Mr. McDonnell served as a director of the Federal Reserve Page 24 Bank of St. Louis from 1951 through 1956, and as a director of the Little Rock Branch for the year 1944. The following official appointments were made at the Federal Reserve Bank of St. Louis and branches during 1957: Guy S. Freutel was promoted to First Vice President, effective April 1; Donald L. Henry was appointed Vice President of the bank and Man ager of the Louisville Branch, effective March 1; John W. Menges was appointed Cashier and Clarence J. Woertz was appointed Assistant Cashier of the Louis ville Branch, effective March 1; Janes M. Geiger was promoted to Assistant Vice President of the bank, effective June 16, and Wilbur H. Isbell was appointed A ssistant C h ief Exam iner, effective Septem ber 1; E. Francis DeVos was appointed Cashier of the Mem phis Branch, effective September 1. Frederick L. Deming resigned as First Vice Presi dent of the bank, effective March 31, 1957, to accept the position of President of the Federal Reserve Bank of Minneapolis. Victor M. Longstreet resigned as Vice President of the bank and Manager of the Louis ville Branch, effective February 28, 1957. John J. Christ retired as Assistant Vice President of the bank, effective January 1, 1958.
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