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O F TH E

FEDERAL RESERVE SYSTEM
SERVED

GENERAL INFORMATION
REGARDING MEMBERSHIP IN THE
FEDERAL RESERVE SYSTEM

BY TH E

LITTLE ROCK BRANCH
A r k a d e l p h ia — Citizens National Bank
A s h d o w n — First National Bank
B atesville — Citizens Bank & Trust Company

Am ong the privileges which a bank enjoys as a

C a m d e n — Citizens National Bank

member o f the Federal Reserve System are the f o l ­

C l ar k svill e — Farmers National Bank

low ing:

C o n w a y — First National Bank
D e Q u e e n — First National Bank
D eW

itt —

First National Bank

E l D orado — First National Bank

National Bank of Commerce
F ordyce — First National Bank
Fordyce Bank and Trust Company
G urdon — F irst National Bank
H eber S prings — A rkansas National Bank
H ope — C itizens National Bank
First National Bank

1.

Facilities fo r rediscounting paper and obtain­
ing advances on prom issory notes.

2.

Obtaining currency and coin prom ptly when
needed.
3. Direct use o f Federal Reserve check collection
facilities.
4. Direct use o f Federal Reserve non-cash co lle c­
tion service.
5. Transferring funds by telegraph.

H ot S prings — A rkansas N ational Bank

6.

L a k e V illage — F irst National Bank

7.

L e w isvill e — F irst National Bank
L ittl e R o c k — Commercial National Bank
Peoples National Bank
Union National Bank
W . B. W orthen Company, Bankers

Drawing drafts on Federal Reserve bank.

Safekeeping o f securities by the Federal R e­
serve bank fo r member banks.
8. Member bank deposits are automatically in­
sured by the Federal Deposit Insurance C or­
poration up to $5,000 fo r any one depositor.

M alvern — M alvern National Bank
M an sfield — N ational Bank of M ansfield
N a sh v ill e — F irst National Bank
N e w a r k — F irst National Bank
P aris — F irst National Bank
P in e B l u f f — N ational Bank of Commerce
Sim m ons National Bank
R ussellville — B ank of Russellville

Peoples Exchange Bank
S tuttgart — Peoples National Bank
T e x a r k a n a — State National Bank
T u c k e r m a n — First National Bank
W ald ro
 n — Bank of Waldron


ALL MEMBER BANKS O F THE
FEDERAL RESERVE SYSTEM
MAY USE THIS EMBLEM!

i

M

LITTLE ROCK BRANCH W

FEDERAL RESERVE RANK
OF ST. LOUIS
LOUISIANA and THIRD STREETS

Assorting desk in the Transit Department. Exactly 4,466,945 checks
of farmers, merchants, manufacturers and the general public were
handled by this department in 1936. These checks totaled the im­
mense sum of $882,088,983.00, and were collected at par for member
banks.




The Custody Department for member banks and as Fiscal Agent for
the United States Government held collateral at the end of the year
1936, amounting to $80,804,240.00.

This armored truck, owned by the Little Rock Branch, is equipped
with bullet-proof steel and glass and is another feature in the pro­
tection plan. It is used in transporting coin, currency and securities
within the City of Little Rock, conveying and receiving shipments
to and from the post office and other carrying agencies and the
Branch Bank.

This massive steel door is at the entrance of the bank’s main vault.
This vault, one of the finest in the South, is equipped with every
device for protection which modern engineering has developed. In
it are stored money and securities of the Branch, also securities held
in custody for member banks and collateral held by the Reserve
Bank as Fiscal Agent of the United States Government.

Currency unfit for further circulation is canceled by this machine
and then forwarded to the United States Treasury. The currency is
redeemed by the Treasury, which ships new bills to the Little Rock
Branch to supply the requirements of commercial banks in its terri­
tory. Approximately TEN BILLION D O LLAR S of currency and coin
were handled by the Federal Reserve Banks and Branches in 1936.

How the Little Rock Branch Serves
the State of Arkansas
The Little R ock Branch o f the Federal Reserve Bank
o f St. Louis was opened fo r business on January 6,
1919. It was established to afford closer contact and
more prom pt service to banking, agricultural, mercan­
tile and industrial interests in the area assigned to it.
In the conduct o f his business, any merchant, manu­
facturer or farm er in need o f funds may borrow from
a com m ercial bank in his own community. Should
this bank be a member o f the Federal Reserve System,
it can discount the note, if eligible, at the Little Rock
Branch and receive therefor credit on the books o f

VOLUME OF OPERATION
In the Major Departments o f the Bank
For the Year 19 36
M o n ey D epartm ent
Currency
Coin

N O . OF
PIE C E S

AMOUNT

9,220,270
5,563,032

$34,472,900.00
654,805.00

83,974

$55,001,126.00

4,466,945
6,509

$882,088,983.00
$212,296,147.00

C o ll ec tio n D ep a r t m e n t
Non-cash
Collection Items
T r a n sit D e p a r t m e n t
Checks Collected
Transfer of Funds

the Federal Reserve Bank or cash, as it may elect.
The relation o f a member bank o f its territory to
the Little Rock Branch is similar in many respects to
the relation o f an individual to his bank. It is chiefly
from member banks that the Reserve banks receive
deposits and to member banks that they make loans
and supply currency.
The Banking Act o f 1935 gives broad powers to
Federal Reserve Banks in the matter o f granting credit
to member banks upon security o f their sound assets.
Summing up, the Little R ock Branch o f the Federal
Reserve Bank o f St. Louis plays an important part in
the business prosperity o f its area, m ainly by provid­
ing a steady flow o f credit and currency extending
to the principal branches o f activity.



What the Federal Reserve System
Means to Finance, Business, and
the General Public
In its more than twenty-two years o f operation and
development, the Federal Reserve System has become
an integral part o f American business and finance.
Through the Interdistrict Settlement Fund it has
made possible the m ore efficient, less costly, and
speedier handling by member banks o f check co lle c­
tions and transfer o f funds.
It has provided an elastic and adequate supply of
currency, a concentration o f bank reserves fo r greater
usefulness, and an efficient Fiscal Agency fo r the
Government o f the United States.

So mechanically perfect that it is proof against two bills slipping
through at one time, this marvel of the machine age counts approxi­
mately 20,000 bills each day. Last year 9,220,270 bills, amounting
to $34,472,900.00, were tabulated by these machines in the Little
Rock Branch.

The Federal Reserve banks may be thought o f as
a system o f twelve reservoirs, each holding the re­
serve deposits o f member banks and prepared to
make loans to meet the credit needs o f its respective
district. Facilities fo r borrow ing on sound assets at
its Federal Reserve bank or Branch are an assurance
to a well-managed bank o f its capacity to render
better service to its industrial, com m ercial and agri­
cultural customers.
The Board o f Governors o f the Federal Reserve
System has been given definite authority, administered
in the pu blic interest, fo r the determination and di­
rection o f a national credit p olicy through control
o f open market operations, discount rates, reserve re­
quirements, and the establishment o f margins in stock
market operations.
The Federal Reserve System is the result o f bank­
ing experience as developed in this country. It is not
made up o f untried theories but is based on tested
banking principles. A bout 40 per cent o f the com ­
mercial banks in the United States were members
o f the System on June 30, 1936, and these member
banks had resources amounting to about four-fifths
o f the total banking resources o f all com m ercial banks
in the country.
A cordial invitation is extended to the general pub­
lic to visit the Little R ock Branch, as it is a pleasure
to show anyone through the building and explain the
various operations o f the Little R ock Branch o f the
Federal Reserve Bank o f St. Louis.