Full text of The Federal Reserve Bank of St. Louis Welcomes You

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’'Often I stand and watch with neverending wonder, the continuous line in
front of a teller’s window. The steady
stream of customers keeps moving for­
ward with almost clocklike precision—
doctors, farmers, lawyers, housewives,
truck drivers, teachers, plumbers, sten­
ographers . . . For the hank, like the
school, the church, the Government,
has become a vital part of our daily liv­
ing. N o longer is it only for the con­
venience of a privileged class. It is now
a necessity of the people.”
— Samuel A. Hoffman
The Romance of Banking







So you work atOFtheST.FEDERAL
RESERVE BANK
LOUIS,” the young lady ex­
claimed as she smiled with a glow of
recognition in her eyes. “Why . . . I
remember that. It’s that big, gray build­
ing at Broadway and Locust where they
print money . . . made a trip through
it when I was in school.”
“How nice,” we stammered, for she
was very pretty. But— her statement
wasn’t altogether correct. Our building
is big and gray, and it does stand at
Broadway and Locust, but we don’t
print money. (We get our supply of
newly printed money from the Treas­
ury Department in Washington.)

We
are pleased that the young lady remembered
that there is such a bank. But how much better, if she had

remembered just a little more! To help clear up the facts about
“us” with those of you who visit the bank, we have prepared
this booklet. We don’t want you to forget such things as your
visit in the central tube station where messages are sent along
in jet-propulsion manner nor the forty-five ton vault door that
swings at the touch of a finger. But we hope that you’ll also
remember something about Federal Reserve responsibilities and
the services we perform for bankers, businessmen, and YOU.
So: This booklet is to help you REMEM­
BER AND to help you clear up the
facts!
When someone talks about the “bank”
he too often means only the building. But
the bank is more than a shelter containing
equipment for carrying on its business. A
bank is above all . . .

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The
people who run it. There are some 1200
people making up the Federal Reserve Bank of St. Louis. Nine

hundred or so of them work in St. Louis. The other 300 work
in the three branches at Louisville, Memphis, and Little Rock.
EVEN THOUGH WE ARE QUITE A LARGE GROUP OF
PEOPLE, the Federal Reserve Bank of St. Louis is only one
member of a much larger group—

THE FEDERAL RESERVE SYSTEM
The SYSTEM is constructed as follows:

||||

The directors, officers and employees of some 7,000 member
banks which are the stockholders of the Federal Reserve Banks
and which hold 85 per cent of deposits at all commercial banks
in the United States.
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We in the Federal Reserve System serve the entire United
States, as you probably know. To do this best, the country is
divided into twelve districts, one of which is assigned to each
Federal Reserve Bank. Our district is known as the EIGHTH
FEDERAL RESERVE DISTRICT.

THE EIGHTH FEDERAL RESERVE
DISTRICT IS LARGE AND HAS
DIVERSE RESOURCES

TENN,

1 APPLES
2 AIRPLANES OR
MAJOR PARTS
3 BAUXITE
4 BEEF
5 BEER
« CHEMICALS
7 COAL
» CORN
9 COTTON

10 DAIRYING
12 HOGS

11 FURNITURE
SCALE OF M ILES

4



13
14
15
16
17

HORSES
LEAD
LIMESTONE
OIL
PEACHES

18
19
20
21
22
23
24
25
26
27
28
29
30
31

POULTRY
RECREATION
REFRIGERATORS
RICE
SAND AND CLAY
SHEEP
SHOES
SOYBEANS
STEEL
STOCKYARDS
TIMBER
TOBACCO
TOMATOES
TRACTORS OR
OTHER FARM
EQUIP.
32 WATERMELONS
33 WHEAT
34 WHISKEY

The
Eighth
District
INCLUDES ALL OR
PARTS OF SEVEN STATES. This is a large territory, ap­
proximately 520 miles in length and the same in width at its
maximum dimensions. It includes almost 196,000 square miles
and is inhabited by over ten-and-a-half million people. Per­
haps a better idea of its size can be gained by comparing it to
a well-known country. For instance, it is almost the size of
France (213,000 square miles) with about one-fourth as many
people.
The Eighth District is not one of the wealthiest regions in
the United States. In fact, many parts of it are unfortunately
low in income. But the district’s resources are diverse and with
proper use and management of them its income levels can be
raised. The numbers oi
show the location of
the district’s leading
resources and services.

Branches
help
serve
th e d is tr ic t
BETTER. It would be difficult to serve adequately this large

and diverse territory from one office. Therefore, three branches
have been established in addition to the St. Louis office, as has
already been noted. The territory served by each of these
branches and the St. Louis office is shown on the map.

So far you’ve seen that
9
9




we are part of a large Federal Reserve family
our part of the family is assigned to one
section of the United States known as the
“Eighth Federal Reserve District”
5

HAVE WE BEEN ORGANIZED LIKE THIS?
Why
The principal purpose of the Federal Reserve is to regulate
the supply, availability, and cost of money with a view
to contributing to the maintenance of a

high level of employment

stable values

a rising standard
of living.

This sounds like a big job— and it is. It is also sometimes a
pretty technical one. But we aren’t going to conduct a class on
economics and banking here.* However, just observation of
the many things that are done in the departments you have
* A booklet entitled “The Federal Reserve System, Its Purposes and Functions,”
has been prepared by the Board of Governors of the Federal Reserve System.
We will be glad to give copies of this booklet to those interested in a fuller
description of the central banking functions of the System.

6




seen, and learning about some that you haven’t seen, can help
you better understand the operations of the bank.
So— on the following pages
we have continued our description of the bank according
to the groups that do the work.

The Groups

th a t do th e w ork

The Board of Directors . . .

of the Federal Reserve Bank of St. Louis is composed of
representatives of industry, agriculture, and banking. There are
nine directors, six of whom are elected by the member banks,
while three are appointed by the Board of Governors. They
meet at least once a month with the officers to review opera­
tions and help shape the operating policies of the bank.

The Officers. . .

like the directors, assist in forming policy. Also, they are
responsible for the regular day-to-day activities of the bank.
The president of the bank is, of course, the chief officer. He is
assisted not only by officers at St. Louis, but by a manager
and assistant managers at each branch as well.



7

The Research Department Staff .

is the economic fact-finding and interpreting group of the
bank. This group gathers and interprets information about
industry, trade, agriculture, banking and credit, construction,
and employment. This information is used by the Board of
Governors in Washington, our directors and officers and mem­
ber banks, many business concerns and private citizens. Every
month the research staff publishes and distributes free of charge
a business magazine called the “Monthly Review”.

Those in the Field Service Department . . .

help maintain smooth working rela­
tions with the Eighth District banks.
Field representatives make personal
visits to each of the 1,500 member and
nonmember banks at least once a year.
They discuss with bankers questions re­
lating to Federal Reserve Bank services
and policies, and business and financial
conditions.
The F ield Service Departm ent
maintains a small library of motion pic­
ture films on banking which your school,
library, club, or business group can bor­
8



row. It also maintains two currency exhibits for loan to mem­
ber banks. The trip you just made was scheduled by this
department

The Bank Examiners . . .

make periodic examinations of state member banks, usually
in cooperation with state bank examiners. They help member
bankers interpret laws and regulations, and counsel with them
on matters affecting their operations and policies. They also
examine banks applying for membership in the Federal Reserve
System.

In the Credit Discount Department. . .

member banks can obtain additional funds to replenish their
reserves. The member banks must pledge certain assets as
collateral and meet certain credit and legal standards before
they can borrow. Passing upon the acceptability of such col­
lateral is a major job of this group.



9

Those in the Money Department. . .

do NOT print money. But they
DO put m o n e y in circulation.
When a member bank has surplus
cash on hand, it deposits this cash
with us, through our Money De­
partment. When it needs more
ready cash, it withdraws currency
and coin from us. In the process
old, worn money is retired and
spanking new bills and shiny coins
are put in circulation.
On some days, over 400,000 pieces of paper currency and
650,000 coins are sorted and counted. Coins unfit for use are
shipped back to one of the mints. “Tired” old dollar bills and
other paper currency are cancelled and cut and forwarded to
Washington, D. C. Any counterfeit money found is turned over
to the United States Secret Service who set their best sleuths
on the trail of the counterfeiters.

Those in the Check Collection Department. . .

are busy proving, sorting, endors­
ing, listing and forwarding for pay­
ment all sorts of checks drawn on
par banks and the United States.
(The term “par” has nothing to do
with golf, but refers to a bank
which pays checks drawn on it at
face value — without deducting
special charges called “exchange
charges”.) If you went through
this department during the busy
period of the day, you will recall
the clatter of machines and the
obvious pressure of work. And, no
wonder! On average days these people handle from 300,000

10




to 450,000 checks. On peak days the volume has reached more
than 600,000 checks! These checks are sent throughout the
district and all over the U. S. Annually, in the United States
over 10 billion checks are written, totaling more than one trillion
dollars ($1,000,000,000,000), and a substantial portion of
them are cleared through the Federal Reserve System.

In the Collection-Transfer Department. . .

an even faster exchange of funds is carried out by telegraph
for the account of member banks in this district to and from
any other member banks in the United States. By using this
wire service a member banker can make the funds of his bank
available for immediate use in any city where another member
bank is located. The department also handles transfers of funds
by the slower mail method.
Another job performed in this department is to collect notes,
acceptances, drafts, bonds and non-government coupons for
member banks. They also redeem maturing government coupons.
And they operate a local check exchange for about 45 mem­
ber and nonmember clearing banks which are not members of
the St. Louis Clearing House Association.

Safekeeping . . .

Sometimes you can go by names and sometimes you can’t
In the case of the people in the Safekeeping Department, it
would be wrong to say that they “keep the safe”— or vault



li

True, they do work in it. But it is securities owned by certain
member banks that this department “keeps safely”.
One of the jobs of those in the Safekeeping Department is
clipping coupons. This may be a pleasure when the coupons
are your own— but, it is quite a job when you have thousands
of them to clip for someone else! The coupons are from securi­
ties which we hold for the account of certain member banks
whose locations make it inconvenient for them to have the
securities in their own vaults. The securities themselves are
also collected for the member banks as they become payable.
Safekeeping employees also hold securities which are being
held as collateral for loans made in the Credit-Discount Depart­
ment or as security for deposits of various special public depos­
itors in banks throughout the district.

The Fiscal Agency Department, . .

has as its principal job the issuance, reissuance, exchange,
and redemption of various kinds of securities as Fiscal Agent
of the United States. Among these are United States Savings
Bonds, such as you probably hold. Other securities processed
here include United States Treasury Bonds, Notes, Certificates
of Indebtedness and Treasury Bills. In addition, safekeeping
facilities are provided for savings bonds owned by individuals
and negotiable government securities are purchased and sold
in the open market for member banks.
12



Another job performed in this department is the processing
for the U. S. Treasury of receipts and payments for withheld
income taxes on wages and social security taxes.

Those in the Accounting Department . . .

are our bookkeepers and perform duties similar to those in
the accounting departments of most banks and other businesses.
Member banks are required by law to keep certain funds, called
“Reserves”, on deposit with us, and our Accounting Depart­
ment checks to see that these deposits are sufficient under the
law. The department also keeps books on our transactions with
other Federal Reserve Banks, and keeps track of the General
Account of the Treasurer of the United States for whom the
Reserve Banks act as depositories.

The Federal Reserve Agent, . . .

appointed by the Board of Governors, is the same person who
is Chairman of our Board of Directors. As Federal Reserve
Agent he has charge of a stock of Federal Reserve Notes which
he can release to the Federal Reserve Bank as they are needed.
When the Reserve Bank has more notes on hand than it needs,
it can return the surplus to the Federal Reserve Agent. For
routine handling of this work there is a full-time Assistant
Federal Reserve Agent



13

The Protection Department. . .
Hardly anyone needs to be told
w h a t the Protection Department
does. It’s rather obvious that the
guards are toting those pistols for a
purpose! The guards practice shoot­
ing regularly on the bank’s own tar­
get range. Besides guarding the bank
day and night, the Protection De­
partment operates a specially de­
signed armored truck for transport­
ing cash and securities.

The Purchasing Department. . .

besides buying the equipment and supplies needed by the
bank and maintaining a stockroom, operates a duplicating sec­
tion where many of the bank’s business forms, etc., are printed.

The Budget and Planning Department. . .

does just what its name implies— sets up budgets for the
operations of the bank each year and aids in general planning.

In General Files . . .

the paper work of the bank re­
ceives an orderly home. Some 5,000
pieces of correspondence and reports
are filed daily. But, don’t worry—
they’re not going to overflow and
block Broadway! Records no longer
current are transferred to the Record
Room, and some of them are de­
stroyed after reasonable periods of
time. Of course, a few important rec­
ords are kept permanently.

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The Audit Department Staff . . .

verifies, at regular intervals, the cash and securities held in
the various departments of the bank. It also verifies each account
in the bank’s general ledger and performs other audit functions.

The Maintenance Department. . .

has the job of keeping the building in trim shape, which it
does, and more besides— it actually improves it. These general
handymen have their own workshop where they can and do
make parts to repair everything from desk chairs to elevators.

Those in the Personnel Department. . .

do a whole lot more than merely hand us a questionnaire
when we seek employment at the bank. Once we are hired,
this group helps look after our health and welfare. A doctor
and nurse give us periodic physical checkups and emergency
care when required. Our salaries and work are given a regular
“merit review”. Finally, Personnel Department looks after our
retirement pay under Social Security and the Federal Reserve
System’s own Retirement Plan.

Any
questions
— This story about us— the Federal
Reserve Bank of St. Louis— has been brief and very general.

Information about how the Federal Reserve System functions
can be obtained from the booklet “The Federal Reserve Sys­
tem, Its Purposes and Functions” (see footnote, page 6). Or
we will be glad to answer any questions regarding the bank
and System. Just send us a letter.
And now, perhaps you’d like to try your hand at the ques­
tions on the next page.



15

HOW MANY CAN YOU ANSWER?
Many of these facts concerning the
bank were told you by your guide on
your trip. Others you may have learned
from observation or from reading this
booklet. How many can you answer?
Answers are in the small print on the
next page.
1. The main walls of the bank are made of: 1. Bedford limestone;
2. concrete; 3. granite.

2.

3.
4.
5.

The seals of the seven states represented in the Eighth Federal
Reserve District are carved on the: 1. cafeteria wall; 2. outside
walls; 3. walls of the lobby.
The Federal Reserve Bank of St. Louis has three branches located
at: 1. Louisville, Little Rock, and Evansville; 2. Louisville, Mem­
phis, and Pine Bluff; 3. Louisville, Little Rock, and Memphis.
The door to the main vault weighs approximately: 1. 45 tons;
2. 2,000 pounds; 3. 100 tons.
The Federal Reserve Bank of St Louis: 1. puts money in circu­
lation; 2. prints money; 3. sells money.

6. The name of the new annex to the bank is: 1. Chester C. Davis
Building; 2. Jefferson Memorial; 3. Federal Building.

7.

The Federal Reserve Bank of St. Louis occupied its present site in:
1. 1917; 2. 1925; 3. 1905.

8. The “security court” is a place where: 1. the guards practice shoot­

9.

ing; 2. bonds are judged; 3. money trucks enter the bank.

The number of member banks in the Federal Reserve System is
approximately: 1. 100,000; 2. 525; 3. 7,000.
10. The capital stock in a Federal Reserve Bank is owned by: 1. the
Treasury Department; 2. the Federal Government; 3. its member
banks.
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1- 1 ; 2 - 2 ; 3 - 3 ; 4 - 1 ; 5 - 1 ; 6 - 1 ; 7 - 2 ; 8 - 3 ; 9 - 3 ; 10 - 3 .

ANSWERS:



“The principal purpose of the
Federal Reserve is to regulate the
supply, availability, and cost of
money with a view to contributing
to the maintenance of a high level
of employment, stable values, and
a rising standard of living.”
— The Federal Reserve System ,
Its Purposes and If unctions