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Operations of the Federal Reserve Bank
of St. Louis —1977
PAUL A. WATKINS, JR.

ItS the central bank of the United States, the Federal Reserve performs three basic functions. It conducts monetary policy, supervises and regulates
member banks, and provides various services to the
public, the Treasury, and commerical banks.
These functions are performed by the Federal Reserve System’s Board of Governors in Washington,
the 12 regional Reserve Banks located in Boston, New
York, Philadelphia, Cleveland, Richmond, Atlanta,
Chicago, St. Louis, Minneapolis, Kansas City, Dallas
and San Francisco, and the 25 branches of the regional
banks.

Although they have authority to examine all member banks, Federal Reserve Banks generally do not
examine national banks, all of which are required
to be members of the Federal Reserve System. Primary responsibility for examination and supervision
of national banks, which number 340 in the Eighth
District, lies with the office of the Comptroller of
the Currency. The Federal Deposit Insurance Corporation (FDIC), along with respective state banking
authorities, examines state nonmember banks that
are insured by the FDIC. Noninsured banks are examined only by state authorities.

The Federal Reserve Bank of St. Louis, together
with the state banking authorities, has responsibility
for the supervision of the 79 state chartered banks
in the Eighth District which have elected to become
members of the Federal Reserve System. An annual
examination is made of state member banks in order
to evaluate their assets, liabilities, capital accounts,
liquidity, operations, and mnanagement. Attention is
also focused on compliance with applicable laws and
regulations.

Federal Reserve Banks also supervise bank holding
companies. At the end of 1977, the Federal Reserve
Bank of St. Louis had jurisdiction over 20 multibank
and 88 one-bank holding companies. Prior approval
must he obtained from the Federal Reserve System
for bank holding company formations and for acquisitions of additional banks and permissible nonbank
subsidiaries. Applications for holding company formations and for acquisitions of additional subsidiaries
are analyzed by the Bank Supervision and Regulation
Department along with the Legal and Research Departments. These departments consider the history,
financial condition, and prospects of the institutions,
and evaluate the quality of management. They also
assess the legal aspects of the proposal and its likely
effects on banking and nonbanking competition. During 1977, the Federal Reserve Bank of St. Louis received 14 applications to form one-bank or multibank
holding companies and 24 applications from holding
companies to acquire additional subsidiaries, engage
de novo in nonbank activities, or establish new
locations.

Information gathered from such examinations is
utilized by banking authorities to direct attention to
potential problems or unsatisfactory conditions of the
banks. Supervision seeks to foster an effective banking system in which the public interest is safeguarded.

After formation, bank holding companies are required to register and file annual reports with Federal
Reserve Banks. These annual reports are analyzed by
the staff of the Bank Supervision and Regulation Department to verify accuracy and completeness, to

The Eighth Federal Reserve District is served by
the head office in St. Louis and branches in Little
Rock, Louisville and Memphis. The district encompasses Arkansas and parts of Illinois, Indiana, Kentucky, Mississippi, Missouri, and Tennessee.
This article reviews the operations of the Federal
Reserve Bank of St. Louis during 1977.
.Lia-ri-k

i

Page 16



‘t~

i;(mn-ttI~

jliC[2’U.ii

~ticm-n

APRIL 1978

FEDERAL RESERVE BANK OF ST. LOUIS

ascertain the current financial condition of the holding company and its subsidiaries, and to determine
compliance with applicable laws and regulations.
Examination reports prepared by the primary Federal supervisory agency of the respective bank subsidiaries are also analyzed by the Federal Reserve
Bank to determine the overall condition of such subsidiaries. In addition, discretionary on-site inspections
of bank holding companies and their nonbank subsidiaries are conducted by Supervision and Regulation personnel. The purpose of these inspections is
similar to that of examinations of banks.

The collection and clearing of checks drawn on
member and nonmemher banks is a service provided
by the Federal Reserve System and is a major activity at this Bank. Payment for the items cleared is accomplished on the day of presentment by a charge
to the reserve account of the member bank or to the
reserve account of a member correspondent. Checks
drawn on nonmember banks are also paid for on the
day of presentment by a charge to the account of a
specified member correspondent.
During 1977 the four Federal Reserve offices in the
Eighth District cleared 693 million checks totaling
$289 billion. This reflects increases of almost 4 percent in the number of checks cleared and more than
14 percent in dollar value when compared with 1976
check clearing activity. Although growth in the volume of items cleared has slowed somewhat over the
past year, the dollar value of these items continued
to increase at about the same rate as in past years.
A major goal of the Federal Reserve System is to
provide a speedy check payments mechanism. To this
end a Regional Check Processing Center (RCPC)
program was implemented during the early 1970s to
Table I

increase the speed of the check payment process and
to facilitate the return of dishonored items. The
RCPCs that have been in operation in the Eighth
Federal Reserve District since 1972 continue to enable
the overnight collection of items drawn on banks in
the RCPC area, thereby permitting prompt credit and
payment for these checks.

Wire transfers have been used for many years to
facilitate transfers of balances between banks. The
Federal Reserve and its member banks utilize a computer network for transferring funds nationwide. Using this system, many member banks are able to
render more efficient service to their customers and
effect payment for the purchase and sale of Fed funds.
Nonmember banks benefit from this service indirectly
through correspondent member banks.
Settlement for such transfers is made by debits and
credits to reserve accounts. Generally, transfers
through this network are for large amounts, with no
charge levied for transfers of $1,000 or more. Member banks also utilize these facilities to transfer marketable government securities. All four Federal Reserve offices and 22 commercial banks in the Eighth
District with a significant volume of transfers are
currently on-line. Several other banks are considering
the installation of terminals. Over 360 member banks
nationwide have installed on—line terminals connected
to their Federal Reserve District computers. Member
banks not having on-line terminals may telephone
their transfers to their local Federal Reserve office
where the transfers are entered into the wire transfer
system over Federal Reserve Bank terminals.
Terminal installations at the banks are connected
to the computer at the St. Louis Federal Reserve
office which is the switching center for the Eighth

VOLUME OF OPERAT(ON$’
Number
(thousands)
1977

Checks hoSted’

Transfers of funds
Currency received and counted ,
,,.,
Government securities issued, serviced, and redeemed
U.S. Government coupons paid
Food Stomps received and counted ,,,,,

1976

3~8%

667,678

1,141

974

17.1

318,000

281,000

400
120,000

(millions)
1977

Change

692,723

13,300

Dollar Amount

Percent
$

1976

288,929

$254,357

1,035,000

Percent
Change

871,000

13.6%
18.8

13.2

2,900

2,800

3.6

13,226

.6

36,388

69,050

—47.3

592

—32,4

1 85

266

—30.5

133,000

—10.5

504

556

—

9,5

5

T,aal for the St. Louis, Little Rock, Louisville and Memphis o~ees.
‘Excludes US. Government checks and postal money orders,




Page 17

APRIL 1978

FEDERAL RESERVE BANK OF St LOUIS

District. Operators of the terminals in the commercial
banks can initiate transfers directly from their banks,
at which time the transfers are processed automatically through -the computer at the St. Louis office
and directed through a central switching computer at
Culpeper, Virginia, to another Federal Reserve District for the account of the receiving commercial bank.
Transfers of funds may also he made between member banks in the same District. If the receiving hank
is on—line, transfers are switched automatically to that
hank’s terminal through its Federal Reserve District
computer.
By transferring funds electronically, all necessary
information for completing the transfer is obtained.
Third-party information may be entered to identify
the originator and/or the recipient of the funds.
Member bank reserve accounts are debited and credited automatically, and banks with on-line terminals
receive an immediate record of each transaction at
its conclusion. The use of electronic equipment for
transfers of funds has reduced the time required for
completion of a typical transaction from almost an
hour to a matter of only a few minutes.
With the installation of on-line terminals at the
22 District commercial banks, about 3,900 transactions
per day are sent and received by electronic means,
and thus do not require manual processing by Eighth
District personnel. This represents 82 percent of total
transfers processed.
Volume and dollar amounts of transfers processed
by the Eighth District continues to increase. During
1977, more than 1.1 million transfers amounting to
$1,035 billion were completed by the Federal Reserve
Bank of St. Louis and its branches. This is an 18 percent increase in number and a 13 percent increase in
value over the previous year.
A-rndenu. jiCt&”YUtZ Fe u-rn-en
The Bank has been processing the payroll for Air
Force installations in the Eighth Federal Reserve
District by electronic means since August 1975.
A number of other Federal recurring payments
are also settled through the electronic funds transfer
system (EFTS). Social Security payments comprise
the largest category with a monthly volume of 280,000
payments. Monthly volumes for other categories are
11,700 Civil Service Annuity payments, 8,500 railroad
retirement payments, 12,000 Veterans Administration
payments, and 5 CIA retirement payments. In addition, 2,000 revenue sharing payments are processed
quarterly.
Page 18



;:UUCeIfl-~Th-;

An automated clearing house (ACH) provides for
the exchange of payments on magnetic tape. Traditional clearing houses, by contrast, provide for the
exchange of payments with batches of paper checks.
The St. Louis Reserve Bank and each of its branches
operate automated clearing houses. The Arkansas
Automated Clearing House, operated by the Little
Rock Branch. began operations in October 1977. The
Kentuckiana Automated Clearing House, operated by
the Louisville Branch, began operating in April 1976.
The Mid-America Payments Exchange, operated by
the Bank’s head office in St. Louis, has been operational since July 1976. In addition, the Mid-South
Automated Clearing House, operated by the Memphis
Branch, began operations in February 1977. The District’s four ACT-I’s process about 42,000 commercial
debit and credit items monthly.
(..;X~-EU axe!

Coin and currency, comprising approximately 26.1
percent of the snotiey stock, are more widely used
than demand deposits in consummating small transac—
tiosis. primarily’ because of convenience. Personal
c’lleC’ks geiierallv are used for transactions of larger
amounts. The Federal Reserve Banks supply, through
the commercial banking system, virtually all of the
coin and currency in circulation, and excess coin and
currency is returned to Federal Reserve Banks through
the commercial banking system.
Approximately 318 million pieces of currency valued
at $2.9 billion were received and verified at the four
Federal Reserve offices in the Eighth District during
1977. This was an increase of about 13 percent in number of pieces, and a 4 percent increase in dollar volume from 1976. The number and value of coins received and verified showed a decline from 1976 levels.
Combined sorting, counting, and wrapping of coin and
currency at the four offices averaged almost 6.4 million pieces per working day in 1977, up slightly from
1976.
In sorting currency at the Reserve Banks, that which
is no longer usable is removed from circulation and
destroyed. During 1977, the Federal Reserve Bank of
St. Louis and its branches verified and destroyed currency totaling $771 million.
Lenc!--i-ri~g

Three types of credit are made available to member
banks in the Eighth Federal Reserve District: short-

FEDERAL RESERVE BANK OF ST. LOUIS

term adjustment, seasonal, and emergency credit. Member banks may make temporary adjustments in their
reserve positions due to deposit losses, unexpected or
mmnusual requests for loans, or other changes they encounter. Member banks which have highly seasonal
loan demands may apply to this Bank for seasonal
credit. Such loan demands are due primarily to a recurring pattern of challge in deposits and loans. Under seasonal credit, member banks are permitted to
maintain a portion of their liquid assets in the form
of Federal funds (loans of excess reserves to other
banks), so long as such holdings conform to the bank’s
normal operating experience. Arrangements for this
type of credit should be made in advance. Credit for
longer periods is also available to member banks to
meet emergency conditions which may result from unusual local, regional, or national financial situations, or
adverse circumstances where member banks are
involved.
The discount rate is the rate of interest charged
by the Federal Reserve Bank on loamis to member
banks. The level of the discount rate, in relation to
other short-term market rates, has an influence on the
volume of credit extended by the Federal Reserve
Bank. \-Vhen the discount rate is higher than other
market interest rates, member banks usually choose
to obtain funds from other sources to make temporary reserve adjustments. When the discount rate is
low in relation to other market rates, member banks
tend to rely more heavily on the Federal Reserve
for funds.
At the start of 1977, the discount rate was 5.25
percent. The rate was increased twice during the
year, and at yearend it was 6 percent. However,
throughout the last half of 1977, the discount rate
was below other short-term interest rates. As a result
of this difference in rates, member bank borrowings
in the Eighth District were relatively high. The daily
average of loans outstanding amounted to $23.7 million in 1977, more than ten times the $2.2 million for
1976. There were 860 loans amoummting to ~.5.0billion
made to 63 Eighth District member banks by tile
Federal Reserve Bank of St. Louis during 1977. This
is an increase from 1976 when 231 loans totaling
$428.9 millon were made to 32 member banks.
F-i-see-I Agene-u
As a fiscal agent of the Federal Government, the
Federal Reserve Bank performs many services. The
U.S. Treasury makes payments for various types of
Government spending through accounts maintained




APRIL

1978

in the System. Funds received by the Treasury are
deposited into its account at the Federal Reserve
Bamiks or into tax and loan accounts at designated
commnercial banks. These funds represent mainly receipts from payment of taxes and collections from the
sale of Government securities to the public. Balances
in the tax and loan accounts are transferred upon call
to the account of the Treasury of the United States at
Federal Reserve Banks in order for the Treasury Department to have use of the funds.
The Federal Reserve Banks also act on behalf of
the Government in marketing Treasury securities.
When the Treasury offers new securities, the Reserve
Bammks prepare and distribute apphcations and official
offering circulars, receive subscriptions from those
who wish to buy, allot the securities among the subscribers according to the tenns of the offering, collect
payment, and make delivery to the purchasers. With
funds from the Treasury’s account, Federal Reserve
Banks pay interest on securities and redeem them
at nmaturity. Reserve Banks also pay interest on and
redeem securities of most Government-sponsored
corporations.
The Federal Reserve Banks will, as fiscal agents,
hold in safekeeping securities pledged to secure Government deposits in tax and loan accounts at commercial banks. Federal Reserve Banks will also Imold
securities of member banks in safekeeping. U.S. Treasury and most government agency securities are held
in hook-entry form by the Reserve Banks.
Securities of the U.S. Government and various government agencies are issued, serviced, and redeemed
by Federal Reserve Banks. In 1977, 13.3 million securities totaling $36.4 billion were handled by the
Federal Reserve Bank of St. Louis and its branches.
Also durimig 1977, coupons of U.S. Treasury and
agency securities totaling 400,000 pieces amounting
to $185 million were paid by Eighth District offices.
U.S. Government food stamps are also redeemned
by Federal Reserve Banks, A total of 120 million
food stamps amounting to $504 million were received
and counted by the Federal Reserve Bank of St. Louis
and branch offices during 1977.

The Federal Reserve System, while working closely
with other pohic~makimmgagencies in the Government,
has the primnary responsibility for the formulation and
implementation of monetary policy. Through representation on the Federal Open Market Committee,
Page 19

As of March 2, 1978

DIRECTORS
St. Louis
Chairman of the Board and Federal Reserve Agent
ARMAND C. STALNAKER, Chairman and President
General American Life Insurance Company, St. Louis, Missouri

ViRc~xIA M. BAILEY.

Owner. Eld0 Properties, Little Rock.
Arkansas
RALPH C. BAn. Vice President. Wabash Plastics. Inc.,
Evansville, Indiana
DoNALD N. BRANDmN. Chairman of the Board and President, The Boatmen’s National Bank of St. Lonis,
St. Louis. Missouri
RAYruoNn C. BURROUGHS. President and Clmief Executive
Officer, The City National Bank of Murphyshoro.
Mumphyshoro, Illinois

K. SxiiTn, JR., Senior Vice President, Monsanto
Company, St. Louis, Missouri
WimmIA~.mH. STROI’BE, Associate Dean, College of Science
and Technology. Western Kentucky University, Bowling Green, Kentucky
WILIItM B. WALTON. Vice Chairman of the Board. Hol.
iday Inns, Inc., Memphis. Tennessee
W~r, WEmGEL. Executive Vice President amid Chief ExecF.
utive Officer, First National Bank and Trust Company,
Centrahia, Illinois
TOM

Little Rock Branch
Chairman of the Board

G. LARRY KELLEY, President
Pickens-Bond Construction Co., Little Rock, Arkansas
B. FINLEY VmNsoN, Chairman of the Board. The First
RONALD W. BAILEY. Executive Vice President and General
Manager. Producers Rice Mill, Inc., Stuttgart,
National Bank in Little Rock, Little Rock, Arkansas
Arkansas
E. HAYS, Jn., President and Chief Executive
Officer, The First National Bank of Hope, Hope,
Arkansas
E. RAY KEMP. JR.. Vice Chairman of the Board and Chief
Administrative Officer, Dillard Department Stores,
Inc., Little Rock, Arkansas

THOMAS

T. G. VmrssoN, President, The Citizens Bank, Batesvihie,

Arkansas
FIELD \VASSON. President. First National Bank, Siloam

Springs, Arkansas

Louisville Branch
of the Board

Chairman
JAMES

H.

DAVIS, Chairman and Chief Executive Officer
Porter Paint Co., Louisville, Kentucky

Chairman of the Board, Tell
City Natiommal Bank. Tell City, Indiana
RICHARD 0. DONEGAN, Vice President and Group Execu.
tive, General Electric Company, Louisville, Kentucky
J. DAVID Gmssortm. Chairman and Chief Executive Officer, Citizens Fidelity Bank and Trust Company.
Louisville. Kentucky
HOWARD BRENNER. Vice

B. ONEv, President, The First National Bank of
Carrollton, Carrollton, Kentucky

FRED

F. THOMPSON, Professor of Economics, Murray
State University, Murray, Kentucky

JAMES

TOM

G. Voss, President, The Seymour National Bank,
Seymour, Indiana

Memphis Branch
Chairman of the Board
JEANNE L. HOLLEY, Associate Professor of Business Education
and Office Admirustration, University of Mississippi, University, Mississippi

W. M. CAMPBELL, Chairman of the Board and Chief
Executive Officer, First National Bank of Eastern
Arkansas, Forrest City, Arkansas
ROBERT E. HEALY. Partner~In-Charge,Price Waterhonse
& Co.. Memphis, Tennessee
FRANK A. JONES, JR., President, Cook Industries, Inc.,

Memphis, Tennessee

STALLINGS LIPrORD,

President, First-Citizens National

Bank of Dyersburg, Dyersburg, Tennessee
WILLIAM WOOTEN MITCHELL, Chairman, First Tennessee

Bank N.A., Memphis, Tennessee
CHARLEs S. YOUNGBLOOD, President and Chief Executive

Officer, First Columbus National Bank, Columbus,
Mississippi

Member, Federal Advisory Council
CLARENCE C. BARKSDALE, Chairman of the Board and Chief Execmmtive Officer

First National Bank in St- Louis, St. Louis, Missouri
Page 20



OFFICERS
St. Louis
LAWRENCE
DONALD

B.

ANATOL

K. Roos, President

W. MORIARTY,

BALBACH, Senior Vice President

P. GARBARINI, Senior Vice President
& Controller

HAROLD F. UTHOFF, Senior Vice President

LEONALL C. ANDERSEN, Economic Adriser

A.

BRYANT,

First Vice President
F. GARLAND RUSSELL, Jmt., Senior Vice President,
General Counsel, and Secretary

JOSEPH

RUTH

JR.,

J.

BERNHARDT

Vice President

SARTORIUS, General Auditor

T. SNOVER, Vice President

WARREN

ROBERT W. THOMAS. Vice President

DENIS S. KARNOSKY, Vice President
JAMES

R.

KENNEDY, Vice President

DELMER

JOHN

F.

OTTING, Vice President

CHARLES D. ZETTLER, Vice President

WEISZ, Vice President

CLIFTON B. LUTTRELL, Assistant Vice President

NORMAN N. BOWSHER, Assistant Vice President

E.

D.

Assistant Vice President

ARTHUR

L.

KEITH M. CARLSON, Assistant Vice President

EUGENE

F. Oar, Special Adviser

A. MELVIN CARR, Assistant Vice President

hARRY

ALBERT

CAROL
JOAN

B.

P.

BURGER,

CLAYPOOL, Assistant Vice President

Secretary

KALEY,

LESLIE

F,

EDWARD

JOHN W. DRUELINGER, Assistant Vice President

0.

REA, Assistant Vice President

PAUL SALZMAN, Assistant Vice President

CR0NIN, Assistant General Counsel & Assistant

RIcHARD

L.

OERTEL, Assistant Vice President

R.

W. MICHAEL LINDHORST, Assistant General Auditor

ALAN

C.

SCHOTT, Assistant Vice President

J.

WILLIAM

Assistant Vice President

SCHMEDING, Assistant Vice President

SNEED, Assistant Vice President

WHEELER,

Assistant Vice President

Little Rock Branch
JOHN

MICHAEL
THOMAS

R.

T.

F.

BREEN,

Vice President and Manager

MORIARTY, Assistant Vice President and Assistant(~~~Ianager

CALLAWAY, Assistant Vice President

DAVID

T.

RENNIE, Assistant Vice President

Louisville Branch
DONALD
JAMES
GEORGE

F.

REITER,

E.

L. HENRY, Senior Vice President and Manager

CONRAD. Assistant Vice President and Assistant Manager

Ja., Assistant Vice President

THOMAS

J.

WILSON,

Assistant Vice President

Memphis Branch
L.
PAUL

A. C,

I.

TERRY BRITT, Vice President and Manager

BLACK, JR., Assistant Vice President and Assistant Manager

CREMERIUS, JR., Assistant Vice President




C. L.

EPPERSON, JR., Assistant Vice President

Page

21

FEDERAL

RESERVE BANK OF ST. LOUIS

APRIL

Table II

Table III

COMBINED COMPARATIVE STATEMENT
OF CONDITION

COMPARATIVE PROFIT AND LOSS STATEMENT
(DolIor Amounts in Thousands)

(in thot,sor’ds of dollars)
1977
December
U S Govern merit Sccjrities
Bus .
.
.
.
cc’ tificates
.
Notes . .
Bonds

Total earnings

31, 19/6

Net

.763,667

SI .512 649

——
.

.

1.955,859
274.192

54,28 2,61%

$2,802 7CC

S

.

Gold Certir.cate Ri serves
.
Special Drawing Rignts Cer,fica’c
Account .
.
...
Coin . .
.
.
.
.
.
Loans .,nd Secaritieu,
0
D;uccunts and Advor.cns Secu.cd y
US. Goverr,r”erst and Agersc~
Obirgatior...
Othe’ Discounts and Ad~ances
Federal Agcrcy Obligations
Baugnt O~t’iqtst
Cash Items in Process at Ca’leclio., .
Bank Premises (net)
Other Assets
ln’erdist’ict Settlement Account ...
.

——

2.148,02!
3/0,930

.
.

rOTAL US. GcVERNM.ENT
SECiJRITIES
.
.

TOTAL ASSEIS

I7ccemb~r

31, 1977

$

468,914
53 .100
19,869

.166,364
50,000
26,661

6,600

300

329,654
565,391
12.833
75,292

.

276,987
321 441
12 668
63,456
210,478

-.—

$5.8 24.111

.

‘‘

—.

Ruserve Accounts

US Trcosurs”
Gene a’ Account
For&g’,
Ottrtr Depaui’’s.
.
.
.
TOTAL DEPOSITS

Other L’obilitiec

$

$5,291,055

...

817.44?

$

765,374

474,331
9,098
22,260

.

573,537
7,778
58.153

323,136

51.414,842

53,91 2,1 26
.262,632
11 4,545

53,535,992
249.! 05

47,458

36.009

.

Fede’a’ Reserve Notes (NEI)
.
Defe. rca Avai,ability Cash Items
Intardstr ict Set’! e mont Account ..
.

.

.

.

.

TOIAL LIAB:LITIES

$5,759,897

—

$5,225,951

CAPITAL ACCOUNTS
Capital Paid In
Surplt.r ...

S

TOTAL LAPITAI ACCOUNTS
TOTAL LIABILITIES AND
CAPITAL A~COUNT5

...

.

.

32.137
32,137

S

32,552
32.552

S

64,274

$

55824,171

55,291,055

1

the Fi:derssi Opt’st \IarLi I (.nrnniifls’t’ (I (Psl(. i s’iris’si’,Is of IL.
ii Gin.’’
,t.’’.,’n nss’rstIsi’s~ ol tin’ (‘‘shut! Ri’’.i’i’’~S ilti,LIi!
ann list’ I’rc’’.idirit 5.1 lIst’ I s1 tit’rai II. sin,’ BoiL sit ‘Jew ‘ii., L
Li’s prr’sss.Llser.t it5~’IiII
iii’s,
~‘it t
bitt,
it Lit. rs is,.LI:iIiE f.lr\:,.n
Brsc’r~ iIansL t’s’.’sid, Os ‘,ri~ iflLr liii 1 iiit.ttjlsL’ ii.tsfs. 1
t’
t’.( )‘¼I(tlsit’n’t. tiss’ Ililrc’is.t 5’ Lust ‘ale oITr.’usnr~ ted ( sue, .5
runt Ls4tisi.’~ Sec tsr’slis, ~
dir spin nss,srk,’t.




.

.

Curr nt net earnings

Percent
Change

$256 795

109%

33619

35,041

5251 269
5829

Assessn,ersts for e penses of
Board of Governors
.
Net earnings before payment
to U.S Trea ury

+460

—1,563

Net additions (+) or
deductions ~—) .

$221,754

1,403

$243,977

$220,811

1,963

1,915

4 1
133%
—

Il 4%
10.4%

Di tribetton of N t Earnings.
Dividends

.

.

2.5%

Interest on Federal

TOTAL

.

.
.

242 329
—415
$243877

217,582
11.4
1,314 —1316
$220,811

10.4%

Reserve Banks contribute to System ass areness of
local and regional business conditions through the
collection of business, monetary, and financial data.
Information gathered is used by the President of this
Bank in policy discussions during meetings of the
Federal Open Market Committee.
Economic data and analysis of reglonal, national.
and international conditions are made available to the
public by the Research Departlnent through its varV
ous releases. Comprehensive analysis of economic
problems and conditIons provide the basis of articles
appearing in this Review. The Review, which is
published monthly, has a circulation of about 43,000
copies and is distributed both nationally and
internationally.
As mentioned above, the Research Department also
assists in the bank regulatory function by reviewing
the impact of bank mergers and holding company
acquisitions on the communities to be served.

65.104

I’ederai Resin
IiaIshs pi..~ .tii iIIt~iII tills) rnle is
IorsnIIia)UI!j, S\ stens
U’’. (he 12 ledenti
liihC\ 1

l’age 22

.

Reserve Notes
.
Transferred to Surplus

LIABILITIES
Ds’posits,
Member Bank

xpenses

1976

$284.888

ASSETS

I

1978

.L~XL~fdU

.injonfl

The Bank Relations and Public Infonnation Departnient endeavors to establish and maintain personal
contact with all banks located in the Eighth Federal
Reserve District through a structured visitation program and attendance at various banking functions.
An effort is also made to increase public understanding of the functions, responsibilities, and policies of
time Federal Reserve System by distributing films and
publications, providing in-house tours, delivering

FEDERAL RESERVE

DANK OF ST. LOUIS

speeches, and conducting seminars. Emphasis is placed

on maintaining contact with schools and colleges in
this District,
The Functional Cost Analysis Program offered to
member banks is administered by this department.
This program provides participating member banks
with bank operating costs by function and permits
comparison svith banks of similar size. Technical assistance is furnished during thc first year to banks desiring to participate in the program. Last year, 50
Eighth District member banks participated in the
program.
In maintaining contact with the banking industry
and the general public during 1977, the officers and
staff members of the Federal Reserve Bank of St.
Louis and its branches delivered 208 addresses before
hankers, business groups, and educators. The Bank




APRIL

1978

was represented at 223 banker, 491 professional, and
200 miscellaneous meetings. Under the bank visitation
program, 837 banks in the District were visited. During 1977, 355 groups requested films and 5,291 visitors
toured the four Federal Reserve offices in the Eighth
District.

The Bank’s net expenses for 1977 were 4 percent
lower than net expenses for 1976. While expenses declined, the Bank’s payments to the Treasury increased
by more than 11 percent, from $218 million in 1976
to $242 million in 1977.

The $242 million paid to the Treasury was 85.1
percent of total earnings. In 1976, by comparison, 84.7
percent of total earnings was paid to the Treasury.

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