Full text of Roundup : April 1982

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DALLAS
Federal Reserve Bank of Dallas

April 1982

New Dial-Up Terminal Offers Online Access
A new dial-connect terminal is being
offered by the Dallas Fed as an addi­
tional option for online access to
Federal Reserve services. Online ac­
cess links a financial institution with
the Dallas Fed’s computer and with the
nationwide Federal Reserve com­
munications network. The new ter­
minal was designed as an inexpensive
alternative for institutions with insuffi­
cient volume for use of the other online
options the Dallas Fed offers.
As with existing online equipment,
the dial-connect terminals may be
used for sending and receiving wire

transfers of funds and for obtaining
reserve account statement informa­
tion. In the future, additional services
will be accessible using online equip­
ment. These include transfers of
securities, currency and coin services,
Treasury tax and loan advices, money
market interest rate ceiling informa­
tion, and other services.
The IBM Personal Computer was
chosen for use with the new dialconnect service. This system uses a
telephone handset to call the Fed and
establish communications with the
Fed’s computer. When it is not being

used to access Fed services, the IBM
computer will also provide financial in­
stitutions with programmable com­
puting capability and may be used for
such functions as accounts receivable,
accounts payable, general ledger, and
word processing. The cost of the dialconnect terminal option will be approx­
imately $170 per month for terminal
and telephone equipment leasing.
The first group of institutions to
receive installation of the new equip­
ment are scheduled to do so in April.
The Dallas Fed will handle installation
of the equipment and personnel train­
ing.
In addition to the new dial-connect
terminal, the Dallas Fed offers several
other alternatives for institutions seek­
ing online access. These include a
direct link between the institution’s
computer and the Fed’s computer,
which is designed for high-volume
users of Fed Services, and direct links
between various configurations of ter­
minals, keyboards and printers with
the Fed’s computer, which are design­
ed for moderate-volume users of Fed
services.

INSIDE
• New Department
• Call Program
• Check Prices

Lawyers Explain
Reg Z Changes
Members of the Legal Depart­
ment of the Dallas Fed participated
in an all-day seminar for approx­
imately 50 loan officers and ex­
ecutives from North Texas and
Southern Oklahoma to discuss the
changes and sim plification of
Regulation Z. Attorneys Dean
P ankonien and Mike B roker
delivered a broad overview of the
regulation and a general explana­
tion of the changes to those in at­
tendance at the seminar, which was
sponsored by the Liberty National
Bank of Paris.
The changes in this regulation,
which pertains to Truth in Lending,
were initiated partly as a result of
the Monetary Control Act of 1980
and partly because of the Federal
Reserve Board’s own policy of mak­
ing regulations less burdensome.
The major changes to Regulation
Z relate to:
• closed-end credit forms
requirements;
• advertising rules;
• recission requirements; and
• creditors liability to consumers for
violations of the law.
The new changes in the regula­
tion, which financial institutions
originally had to comply to by April
1, 1982, have been deferred to
October 1, 1982.

Dallas Fed Creates New
Funds Transfer Department
A new Transfers of Funds Depart­
ment was created at the Dallas Fed ef­
fective February 1. The department is
responsible for handling the electronic
transfers of funds between accounts
of financial institutions at Federal
Reserve Bank offices using the Federal
Reserve’s communications network.
This computer-operated network is
also used for accessing other Fed ser­
vices and for the transmission of an­
nouncements and information. Jonnie
K. Miller was named manager of the
new department.

Formerly, the wire transfer of funds
function was a part of the Accounting
Department at the Dallas Fed. “ As one
of our priced services, wire transfer is
an area which we felt deserved addi­
tio n a l m anagem ent a tte n tio n ,”
Thomas H. Rust, assistant vice presi­
dent over the area, said. “ This was the
primary reason for the reorganization.”
The Accounting Department is still
responsible for maintaining the reserve
accounts of institutions and general
ledger accounts. Allan Y. Neale is
manager of the department.

Boykin Expects Improved Economy in 1982
Robert H. Boykin, President of the
Federal Reserve Bank of Dallas,
recently was the principal speaker at
the Annual Meeting of the 7th District
Texas Bankers Association. At the
meeting in Fort Worth, Boykin review­
ed the Federal Reserve’s monetary
policies and discussed the economic
outlook for 1982.
In his speech before 500 TBA
members, Boykin stated that, “ ...there
is a good bit of evidence to

suggest...that...once a lower rate of in­
flation is achieved economic growth
will resume, the unemployment rate
will decline, interest rates will come
down, and we will remain competitive
in our balance of payments.
“ Most people are expecting some
improvement in the economy this year.
The members of the Federal Open
Market Committee (of which Boykin is
a member) expect inflation to continue
to moderate in 1982.

“ ...I do believe that the changes in
monetary and fiscal policy that have
taken place are moving us in the right
direction. I believe 1982 and 1983 will
show a marked improvement in the
overall economic climate if these
policies continue. Reduced inflation
and interest rates, a return of growth,
and increases in productivity and jobs
will bear out that the painful adjust­
ment we have been going through was
both necessary and worthwhile.”

Responsive Service Is Goal of Call Program
An increased informational flow bet­
ween the Dallas Fed and financial in­
stitutions and more responsive service
from the Dallas Reserve Bank are ex­
pected to result from the Dallas Fed’s
new call program, which kicked off in
early 1982.
“ Many misconceptions exist in the
financial community regarding ser­
vices available as a result of the
Monetary Control Act,” according to
Larry N. Hill, assistant vice president
of the Dallas Reserve Bank. The call
program is designed to allow officers

ficers of the branches at El Paso,
Houston, and San Antonio will be call­
ing on financial institutions in their ter­
ritories.
The account representatives serving
the Head Office territory include T. Guy
Brown and Larry N. Hill, assistant vice
presidents, and Helen E. Holcomb,
manager, of communications, finan­
cial and community affairs; Richard D.
Ingram, assistant vice president over
checks processing, RCPC and ad­
justments; Donald L. Jackson, assis­
tant vice president over cash; Larry J.

president in charge; Robert W. Schultz,
assistant vice president over checks;
and William L. Wilson, assistant vice
president over cash, securities, ac­
counting, ACH, loan and fiscal agency.
Visitation in the Houston territory
will be made by J. Z. Rowe, senior vice
president in charge; Vernon L. Bartee,
assistant vice president over checks
and RCPC; Sammie C. Clay, assistant
vice president over accounting and
loan; and Andrew W. Hogwood, Jr.,
assistant vice president over fiscal
agency and public and institutional

1 ■W. Arthur Tribble
2 - Robert Smith, III
3 - Helen E. Holcomb
4 • Larry J. Reck
5 ■T. Guy Brown
Mary M. Rosas
6 • E. W. Vorlop, Jr.
7 - Thomas H. Rust
8 • Harry E. Robinson
9 - Larry M. Snell
10 ■ Richard 0. Ingram
11 ■ Donald L. Jackson
12 - Joel L. Koonce, Jr.
Robert W. Schultz
W illiam L. Wilson
13 ■Thomas H. Robertson
John A. Bullock
Thomas C. Cole
Antonio G. Valencia, Jr.
14 - J. Z. Rowe
Vernon L. Bartee
Sammie C. Clay
Andrew W. Hogwood, Jr.

and employees of financial institutions
to learn about Fed services on a first­
hand basis from Fed representatives.
A second major impetus for the new
call program is servicing the accounts
of the institutions using Fed services.
Hill indicated that the Dallas Bank in­
tends to take an active role in solving
problems and resolving differences in
the accounts. “ Responsiveness will be
the key to our relationships with finan­
cial institutions,” he stated.
Hill and twelve other representatives
from the Head Office will be calling on
financial institutions in the Dallas ter­
ritory and will serve as liaisons be­
tween the Dallas Fed and the institu­
tions to which they make calls. The of-

Reck, vice president over cash,
securities, and fiscal agency; Harry E.
Robinson, senior vice president over
cash, securities, and fiscal agency;
Mary M. Rosas, assistant vice presi­
dent over ACH, return items, and mail­
ing; Thomas H. Rust, assistant vice
president over a ccou n ting and
transfers of funds; Robert Smith, III,
vice president over communications,
financial and community affairs; Larry
M. Snell, assistant vice president over
budget and control; W. Arthur Tribble,
assistant general counsel; and E. W.
Vorlop, Jr., vice president over
accounting and transfers of funds.
Visitation in the El Paso territory will
be made by Joel L. Koonce, Jr., vice

relations.
Visitation in the San Antonio ter­
ritory will be made by Thomas H.
Robertson, vice president in charge;
John A. Bullock, assistant vice presi­
dent over checks and RCPC; Thomas
C. Cole, assistant vice president over
cash and fiscal agency; and Antonio G.
Valencia, Jr., assistant vice president
over accounting and loan.
The call program is part of an overall
program for the extension of Fed ser­
vices which began with seminars ex­
plaining Fed services held in the fall of
1981 and includes a series of
brochures describing each service
which is available to financial institu­
tions.

I

Revised Check Prices Effective April 1
The Dallas Fed has announced revi­
sions in its schedule of fees for check
processing services effective April 1.
For the Eleventh Federal Reserve
District, the changes will affect the
prices charged for mixed cash letters,
package sorts and nonmachineable
items. All other prices will remain the
same.
The new fees more accurately reflect
the costs associated with providing
check processing services and
customer use of the services. Check
processing was first priced in August,
1981.
Two general changes affecting the
structure of check processing prices
involve nonmachineable items and
package sorts. Nonmachineable items
are those checks which are too
mutilated to be processed by com­
puter. Separate fees will be charged for
“ local” nonmachineable items, or
those drawn on institutions within the

local Federal Reserve office territory,
and “ other Fed” nonmachineable
items, or those drawn on institutions in
any other Federal Reserve office ter­
ritory. This change was implemented
because “ other Fed” nonmachineable
items must be handled twice within the
Federal Reserve System and are
therefore more expensive to process.
Nonmachineable items, priced at 7.19
cents per item originally, will be I0.00
cents per item for “ local” and 17.20
cents per item for “ other Fed” begin­
ning April 1.
A combination price will be charged
for package sorts, those checks
already bundled and ready for delivery
to a single institution. A fee of $2.50
will be charged for each package, and
.99 cents will be charged for each item
in the deposit. Package sorts were
priced at .80 cents per item originally.
In addition, mixed cash letters,
those containing various types of un­

sorted checks, will be priced at 2.40
cents per item, up from 2.22 cents per
item.
Prices will not change at this time
for all other types of cash letters sent
to the Dallas Fed. These include city,
RCPC, country, group sort, and other
Fed cash letters. Prices announced are
the same at all four offices of the
Dallas Fed.

Summary Available
A summary of the Federal Reserve
Board’s February 10, 1982, report to
Congress titled “ Monetary Policy Ob­
jectives for 1982” is currently available
upon request to the Department of
Communications, Financial and Com­
munity Affairs. This is a twice-yearly
written report on the state of the
economy and the course of monetary
policy.

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