The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
1962 Annual Report of the Federal Reserve Bank of St. Louis Operations F e d e r a l R E S E R V E F U N C T IO N S may be separated into three major classifications—policy, super vision, and service. Policy functions embrace actions taken in connection with the volume, availability, and cost of money. Supervision involves the examination and regulation of banks and certain related organiza tions. Service is the range of activities which, for a variety of historical or functional reasons, are under taken as either precondition or consequence of policy responsibilities. Functions of all three types are per formed at the Federal Reserve Bank of St. Louis and its Little Rock, Louisville, and Memphis branches. The principal policy task undertaken at this bank is the discount function. The bank’s directors set the discount rate every two weeks subject to the review and determination of the Board of Governors. Loans at such rate are extended to member banks through the "discount window.” Such credits in the Eighth Federal Reserve District totaled $881 million in 1962, 8 per cent above 1961 but substantially below the average of the past decade. Loan s to M e m b e r B a n k s 1953-1962 at the end of 1962 was four less than a year earlier. The number of nonmember banks increased from 997 to 1,004, and the total number of commercial banks in the district rose from 1,475 to 1,478. The percent age of total commercial bank deposits held by member banks in the district at mid-1962 was 64.5 compared to 65.3 at mid-1961. Service functions may be classified under three general headings: credit transfers, cash service, and fiscal agency. Credit transfers may again be divided into three groups—check collections, other collections, and interbank transfer of funds. Several of the service functions which a Federal Reserve Bank performs are related to the balances which member banks keep on deposit with it. These balances serve both as part of the reserves prescribed by the policy regulations of the Federal Reserve Sys tem and as working balances for the member banks. W ith respect to check collections, about 230 million checks with a face value in excess of $82 billion were collected by this bank in 1962. The number of checks was up 6.4 per cent compared to 1961, and their dollar value rose 8.5 per cent. C h ecks Collected 1 9 5 3 -1 9 6 2 B illio n s o f D o l l a r s 1954 195 6 1958 1960 1962 Supervision is principally exercised through exam ination of state member banks. A ll the state member banks in the district, totaling 152 on December 31, were examined in 1962, with the 322 national member banks being subject to examinations by the Comptrol ler of the Currency. This total of 474 member banks Page 16 M il l io n C h e c k s The other collections are items which require special handling and are technically known as "noncash collections.” They consist of such items as drafts, promissory notes, stocks, bonds, and coupons. United U.S. G o v e rn m e n t C o u p o n s P a id previous year, and the dollar amount was up 16 per cent. 1953-1962 M il lio n s o f D o l l a r s T h ousand Ite m s The cash service function of the bank is carried out through the Money Department. Its major activ ities include receiving, sorting, counting, paying out, and shipping currency and coin, and wrapping coin. At this bank money handling operations in 1962 showed mixed trends. The volume of currency handled rose somewhat both in number of pieces and dollar volume, following decreases in the two preceding Currency R eceived a n d Counted States Government coupons paid were down 2 per cent in number, but dollar volume was 4 per cent greater. The number of other noncash collection items was up about 2 per cent and their dollar value was sharply higher, 26 per cent above the 1961 level. 1953-1962 B illio n s o f D o l la r s M illio n P ie c e s O ther N o n c a sh Collection Items 1953-1962 M i l l i o n s o f D o l la r s T h ou san d Ite m s years. On the other hand, the number and dollar volume of coin received and counted declined in the year, following a rapid increase in the previous two Coin Received a n d C o u n ted 1953-1962 M il lio n s of D o l la r s M illio n C o in s The "transfers of funds” are largely movements of bank balances. The Federal Reserve System makes this service available to member banks for moving funds quickly from one part of the country to another. Transfers of funds by this bank in 1962, numbering 170 thousand, were 7 per cent greater than in the Transfers of Funds 1953-1962 B illio n s o f D o l la r s T h o u s a n d T ra n sfe rs years. Combined currency and coin received and counted during the year totaled $1.2 billion, about 2 per cent above the 1961 dollar volume. Each Federal Reserve Bank performs a major service function as Depository and Fiscal Agent of the United States Government. In this capacity, the Federal Reserve Banks act as the United States G ov ernment s principal banking agency. They hold G ov ernment demand deposit accounts, accept Government receipts, settle checks drawn on the Treasurer of the United States, and issue, redeem, and transfer title to Government securities. Text continued on Page 20 Page 17 Directors and Officers Directors Chairman of the Board and Federal Reserve Agent E th a n A . H . S h e p le y Of Counsel, Shepley, Kroeger, Fisse & Shepley St. Louis, Missouri Deputy Chairman of the Board J. H . L o n g w e l l Director, Special Studies and Programs College of Agriculture, University of Missouri Columbia, Missouri H. President, Ohio Valley National Bank of Henderson, Henderson, Kentucky L e e C o o p e r, F . H a r r i n g t o n , Chairman of the Board and President, The Boatmen’s National Bank of St. Louis, St. Louis, Missouri M. Q u e e n y , Chairman of the Finance Committee and member of Board of Directors, Monsanto Chemical Company, St. Louis, Missouri Edgar H a rry Senior Executive Vice President, Mead Johnson & Company, Evansville, Indiana H a ro ld 0 . M c C u tc h a n , Chairman of the Board, Rebsamen & East, Inc., Little Rock, Arkansas R aym ond R eb sam en , W e r r e , J r . , Executive Vice President, First National Bank of Steeleville, Steeleville, Illinois A rth u r Executive Vice President, Mid-South Chemical Corporation, Memphis, Tennessee Je sse D . W o o te n , Member of Federal Advisory Council S id n e y M a e s tre Chairman of the Executive Committee Mercantile Trust Company St. Louis, Missouri Officers H a rry A. S h u fo rd , D a r r y l R. F ra n c is , Vice President Vice President E. F r a n c i s D e V o s , Vice President D o n a l d L . H e n r y , Vice President H o m e r J o n e s , Vice President D a l e M . L e w i s , Vice President H o w a r d H . W e i g e l , Vice President and Secretary J o s e p h C . W o t a w a , Vice President O r v i l l e 0 . W y r i c i c , Vice President G e o r g e W . H i r s h m a n , General Auditor G e r a l d T. D u n n e , General Counsel and Assistant Secretary M a rv in L . B e n n e t t , F re d B u rto n , W illia m C a rl T. Adviser Assistant Vice President J. A b b o tt, A rlt, Page 18 President First Vice President Assistant Vice President Assistant Vice President E a r l H . C h a p i n , Assistant Chief Examiner G e o r g e W . D e n n i s o n , Assistant Vice President J. M . G e i g e r , Assistant Vice President W o o d r o w W . G i l m o r e , Planning Officer J o h n J. H o f e r , Assistant Vice President W i l b u r H . I s b e l l , Chief Examiner W i l l i s L . J o h n s , Assistant Vice President R i c h a r d 0 . K a l e y , Assistant Vice President S t e p h e n K o p t i s , Assistant Vice President F . G a r l a n d R u s s e l l , J r . , Assistant Counsel P a u l S a l z m a n , Assistant Vice President W . E . W a l k e r , Assistant Vice President J o s e p h C . W e l m a n , J r . , Assistant Chief Examiner E a r l R. B ille n , N o rm a n N . B o w s h e r, LITTLE ROCK BRANCH Directors Executive Vice President, The First National Bank of DeWitt, DeWitt, Arkansas H . C. A d am s, Ross E . A n d e r s o n , President, The Commercial National Bank of Little Rock, Little Rock, Arkansas J. President, National Bank of Commerce of Pine Bluff, Pine Bluff, Arkansas W . B e lla m y , P. F re d e ric k B la n k s , Planter, Parkdale, Arkansas R. M. L a G r o n e , J r . , President, The Citizens National Bank of Hope, Hope, Arkansas V. S t a b l e r , President, Little Rock University, Little Rock, Arkansas C a re y E. T i l l e r , President, Tiller Tie and Lumber Company, Inc., Little Rock, Arkansas W a ld o Officers F re d B u rto n , Vice President and Manager Cashier J o h n F . B re e n , J r ., H o w a rd J. Je n se n , Assistant Cashier Jo h n K . W ard , Assistant Cashier LOUISVILLE BRANCH Directors E. B a r r e t t , President, The State Bank of Salem, Salem, Indiana R ay President, University of Louisville, Louisville, Kentucky P h ilip C. D a v id s o n , Vice President and General Manager, Southern Bell Telephone and Telegraph Company, Louisville, Kentucky. H u n te r G reen , Jo h n H . H a r d w i c k , President, The Louisville Trust Company, Louisville, Kentucky Jo h n G. R u s s e l l , President, The Peoples First National Bank & Trust Company of Paducah, Paducah, Kentucky R ic h a rd Jo h n T. S m ith , Farmer, Madisonville, Kentucky Executive Vice President, The First National Bank of Mitchell, Mitchell, Indiana R. S tro u d , Officers D o n a ld L . H e n ry , Vice President and Manager J o h n W . M en g es, L o u is A . N e ls o n , Cashier Assistant Cashier C la re n c e J. W o e rtz , Assistant Cashier MEMPHIS BRANCH Directors Jo h n E. B r o w n , Chairman of the Board and President, Union Planters National Bank of Memphis, Memphis, Tennessee C . C a s t l i n g , President, First National Bank at Marianna, Marianna, Arkansas Leon R. C a v i n e s s , President, National Bank of Commerce of Corinth, Corinth, Mississippi C h a rle s B. L e M aster , President, Edward LeMaster Co., Inc., Memphis, Tennessee E d w ard Chairman of the Board, The National Bank of Commerce of Jackson, Jackson, Tennessee S im p so n R u s s e l l , W illia m K in g S e lf, President, Riverside Industries, Marks, Mississippi F ran k Lee W esso n , President, Wesson Farms, Inc., Victoria, Arkansas Officers E . F ra n c is D eV o s, B e n ja m in Paul I. B la c k , J r ., Assistant Cashier Vice President and Manager B. M onaghan, Cashier Jo s e p h P . G a rb a rin i, Assistant Cashier Page 19 U.S. S a v in g s B o n d s Issued, Exch an ge d, a n d R edeem ed 1953-1962 M illio n s o f D o lla rs O ther G o v e rn m e n t Securities Issued, Service d a n d Retired 1953-1962 M illio n Pieces Billio n s o f D o lla rs The number of United States Savings Bonds issued, exchanged, and redeemed at this bank was up 4 per cent in 1962. However, the dollar volume of these securities, totaling $635 million, was about unchanged from the 1961 level. Both the number and dollar value of other Government securities, including secur ities of Government agencies, rose. The number was up about 1 per cent, and dollar volume was more than 20 per cent greater. Personnel at the bank’s four offices increased 2 per cent in 1962 to 1,180 at the end of the year. Most of Thousa nd Pieces O fficers an d Em p lo ye e s D ecem ber 31, 1953-1962 Number Num ber the increase occurred in the Check Collection Depart ment, reflecting the increased volume of operations. Statements E A R N IN G S A N D E X P E N S E S CONDITION FEDERAL RESERVE BANK OF ST. LOUIS FEDERAL RESERVE B A N K O F ST. IO U IS (In thousands of dollars) Total Current Earnings ..................................... Net Expenses .................................................... . .. Current Net Earnings ................................... (In thousands of dollars) 1962 1961 $41,783 9 ,2 1 8 $37,852 8,513 $ 3 2 ,565 $29,3 3 9 Additions to Current Net Earnings: Profit on Sales of U. S. Government Securities (net) ............................................. All Other Total $ ........................... , ............ ............ . . Additions ............................................... 19 $ Deductions from Current Net Earnings: Net Additions ............................ .. Net Earnings before Payment to U. S, T re a s u ry ..........'.................................... 79 $ $ 140 ___.__ 1 98 $ 88 .7 : 10 $ 1.41 3 138 $32,575 $ 2 9 ,4 7 7 Paid to U. S. Treasury (Interest on F. R. Notes) ............... ................. ................ Dividends Paid ..................................... .. . . . Transferred to Surplus .................................. $30,332 940 1 ,3 0 3 $ 2 5 ,7 4 2 862 ■ 2 ,8 7 3 Total $ 3 2 ,575 $ 2 9 ,4 7 7 Distribution of Net Earnings: ................. . .................................................. Page 20 December 31, 1962 Assets Gold Certificate Reserves ........................... Federal Reserve Notes of Other Banks. . Other Cash ....................................................... Discounts and Advances ........................... U. S. Government Securities .................... Uncollected Items ........................................ Other Assets .................................................... Total Assets ............................................. $ 629 ,4 2 2 19,261 14,651 34 1,260,050 2 8 6 ,9 1 6 2 0 ,491 December 31, 1961 $ 679 ,5 7 2 21,784 17,621 2 ,210 1,165,881 3 0 6 ,1 0 0 16,232 $ 2 ,2 3 0 ,825 $ 2 ,2 0 9 ,4 0 0 Federal Reserve Notes (Net) .................... Deposits; Member Banks-—Reserve Accounts, . . U. S. Treasurer— General Accoxint . . Other ............................................................... Deferred Availability Cash Item s............ Other Liabilities and Accrued Dividends T otal Capital Accounts................................. $ 1 ,2 9 5 ,4 9 7 $ 1 ,2 6 9 ,4 1 3 6 5 0 ,0 7 0 31,781 1 3 ,1 1 0 190,151 2 ,6 5 7 4 7 ,5 5 9 6 2 8 ,0 9 6 17,587 11,391 2 3 4 ,9 4 0 2,368 4 5 ,6 0 5 Total Liabilities and Capital Accounts. . $ 2 ,2 3 0 ,8 2 5 $ 2 ,2 0 9 ,4 0 0 l i abilities and Capital Accounts MEMORANDA: Contingent liabilities on acceptances purchased for for eign correspondents decreased from $ 4 ,2 5 0 ,0 0 0 on December 31, 1961 to $ 2 ,8 5 9 ,0 0 0 on December 31, 1962. The ratio of gold certificate re serves to deposit and F.R . note liabilities combined was 3 5 .3 % on Decem ber 31, 1961 and 3 1 .6 % on December 31 , 1962.
@FedFRASER