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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.