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DALLAS
Federal Reserve Bank of Dallas

June 1982

RESPONSE Inaugurated at Big Spring Bank
Recent ceremonies at the State
National Bank in Big Spring, Texas,
marked the installation of the IBM Per­
sonal Computer and the inauguration
of the Dallas Fed’s RESPONSE com­
munications network.
The State National Bank is the first
financial institution in the Eleventh
Federal Reserve District to acquire the
personal computer for transferring
funds and accessing reserve state­
ment information after development
and final testing at the Commercial Na­
tional Bank in Dallas. In addition, the
Dallas Fed is the first in the System to
use personal computer technology to
directly link institutions with the Bank
and the Fed’s nationwide communica­
tions network.

Installation of the computer also in­
itiated the RESPONSE communica­
tions network, which is designed to be
a convenient, fast, and economical
means for financial institutions to gain

access to the services of the Federal
Reserve Bank of Dallas.
Initially, the State National Bank will
use the RESPONSE network, via the
personal computer, to transfer funds.

However, in the future, the bank will
also be able to transfer securities,
order currency and coin, and receive
automated clearinghouse advices.
When not transferring funds, John
Currie, president of the State National
Bank, plans to utilize the computer for
customer-related matters. Located in
West Texas, the economy of Big Spring
is based on two natural resources, cot­
ton and oil. According to Currie, one of
the main functions of the computer will
be to offer assistance to customers,
especially large farmers, with various
accounting needs.
The installation of the personal com­
puter and the implementation of the
RESPONSE network took place during
ceremonies held on May 5. Officials
representing the State National Bank,
Texas Independent Bankers Associa­
tion, IBM, and the Federal Reserve
Bank of Dallas were on hand for the
ceremonies. During the ceremonies,
Currie stated “ that the availability of
the personal computer and its capabili­
ty of providing immediate access to
the Federal Reserve is a milestone for
small independent banks.”

INSIDE
• Securities Services
• Holding Companies
• Boykin Speech

Fed Participates in Consumers Week Activity
On April 27 the Federal Reserve
Bank of Dallas was one of 27 par­
ticipants in the National Consumers
Day Fair. This program was part of the
regional activities coordinated by the
Federal Executive Board in honor of
National Consumers Week, April
25-May 1, an annual event sponsored
by the U.S. Office of Consumer Affairs.
Local government agencies set up
displays on the ground floor of the
Dallas Federal Building, exhibiting
pamphlets and brochures designed to
assist the public with consumerrelated matters. Staff members from
the departments of the Bank which
handle consum er m atters were
available throughout the day to answer
questions. These departments are
Bank Supervision and Regulations,
Legal, and Communications, Financial
and Community Affairs.

Dean Pankonien of the Legal Department mans the Dallas Fed’s consumer fair booth.

Securities Department Begins New Services
A magnetic tape of all securities
safekeeping holdings is a new service
being offered financial institutions by
the Dallas Fed this summer. For a
nominal charge, the new service pro­
vides a tape which includes informa­
tion about all the securities an institu­

tion chooses to hold with the Federal
Reserve Bank of Dallas. Institutions
may choose to use Federal Reserve
safekeeping services not only as a
security measure, but to have their
securities readily available for use as
collateral.

Reg Z Videotape Available
A color videotape presentation
e n title d “ R e g ula tio n Z: The
Simplified Rules” is available for
loan from the Federal Reserve Bank
of Dallas. This 2 1/4-hour, 3/4-inch or.
1/2-inch VHS videotape was pro­
duced by the Federal Reserve
Board’s Division of Consumer and
Community Affairs in cooperation
with the North Carolina AIB Educa­
tional Committee and the Federal
Reserve Bank of San Francisco.
The Regulation Z videotape,
which is divided into three major
parts, includes the contents of a

seminar prepared by the Board’s
staff last year. An introduction pro­
vides an overview of the organiza­
tion of the new regulation, and two
major sections address changes in
rules related to closed-end credit
and to open-end credit.
The Regulation Z videotape will
be loaned free-of-charge on a firstcome, first-served basis. The
Department of Communications,
Financial and Community Affairs
should be contacted for general in­
formation about the videotape and
scheduling.

The new magnetic tape could serve
as a supplement to the paper listings
of securities holdings already provided
to financial institutions. Such a tape is
adaptable to whatever format an in­
stitution chooses and is useful for
reconcilement and auditing purposes.
Now in the testing phase, the service
will be available to all institutions in
July.
In addition to this new service, other
service changes have been im­
plemented recently by the Securities
Departm ent. General s e c u ritie s
safekeeping services are now available
to financial institutions located in
Federal Reserve cities. Previously, in­
stitutions located in Dallas, Houston,
El Paso, and San Antonio were not
eligible for these safekeeping services.
Collection of municipal or corporate
coupons and securities payable in the
same city as the owning institution is
another previously-unavailable service
which has now been implemented. For
further information about any of these
services, the Securities Department
should be contacted.

Reports Document Holding Company Growth
Over 62 percent of Texas bank
deposits are held in banks affiliated
with multibank holding companies and
over 10 percent are held in one-bank
holding companies, according to yearend 1981 reports published by the
Dallas Fed.
Each year the Bank’s Holding Com­
pany S u p e rv is io n D ep artm en t
publishes two reports of holding com­
pany inform ation, the Multibank
Holding Company and One-Bank
Holding Company listings. These
reports list the names, cities, deposits,
and percentages of state deposits for

Texas Bank Deposits - 1981

holding companies in the Eleventh
F ederal Reserve D is tric t. The
Multibank Holding Company report
also lists the rank within the state and
within each state market for multibank
holding companies. Holding company
formations are year-end figures, and
deposit amounts are mid-year figures.
The 1981 One-Bank Holding Com­
pany report lists 299 one-bank holding
companies in Texas with a total of
$9,689,183,000 in deposits represent­
ing 10.313 percent of the state’s total
deposits. For the areas in other states
included in the Eleventh District, the

report lists 16 one-bank holding com­
panies in Louisiana with a total of
$1,199,137,000 in deposits; eight onebank holding companies in New Mex­
ico with a total of $559,437,000 in
deposits; and 15 one-bank holding
companies in Oklahoma with a total of
$326,862,000 in deposits.
Previous One-Bank Holding Com­
pany reports indicate the tremendous
growth experienced by this type of
organization in recent years. The 1977
report, for example, listed 61 one-bank
holding companies in Texas with total
deposits of $2,157,500,000. The four
years since that time have brought
about a 390 percent increase in the
number of one-bank holding com­
panies in Texas and a 349 percent in­
crease in their total deposits.
The 1981 Multibank Holding Com­
pany report lists 54 multibank holding
companies in Texas with 443 sub­
sidiaries and $58,264,200,000 in
deposits representing 62.40 percent of
the state ’s total deposits. One
multibank holding company is listed
for the Eleventh District area of New
Mexico with nine subsidiaries and
$319,400,000 in deposits representing
15.18 percent of the area’s total
deposits.
The 1977 Multibank Holding Com­
pany report listed 34 multibank holding
companies in Texas with 250 sub­
sidiaries and $28,725,600,000 in
deposits. Since that time, the number
of multibank holding companies in the
state has increased 58 percent, the
number of their subsidiaries has in­
creased 77 percent, and the amount of
their total deposits has increased 102
percent.
The 1981 Multibank Holding Com­
pany and One-Bank Holding Company
reports are available from the Dallas
Fed’s Holding Company Supervision
Department at a cost of 10 cents per
page, or $11.40 for the multibank list
and $2.80 for the one-bank list. Re­
quests for orders and further informa­
tion should be directed to Kay Sinclair,
economist in the Holding Company
Supervision Department.

Boykin Says Deficits Will Hurt Recovery
Federal Reserve Bank of Dallas
President Robert H. Boykin told a
University of Texas at Arlington audi­
ence that Federal deficits are now the
biggest single impediment to a sus­
tainable economic recovery. Boykin
was the principal speaker at the Col­
lege of Business Administration and
A dvisory C ouncil D istin g u ish e d
Business Leadership Award Dinner
April 23. The event marked the presen­
tation of the 1982 Distinguished
Business Leadership Award to Mary
Kay Ash, chairman of the board of
Mary Kay Cosmetics, Inc.

Federal deficits
“ Large Federal deficits will keep in­
terest rates higher than they would
be—high enough to preclude the funds
going to business and, of course,
thereby limiting the vigor of the
recovery,” Boykin said. “ I can only be
hopeful that the current negotiations

between the Administration and Con­
gress will quickly lead to a resolution
of this problem and somehow reduce
the size of the deficits in the coming
years.”
Boykin also commented on other
reasons interest rates remain high.
“ We’ve all been taught that interest
rates tend to follow the trend in the
rate of inflation—that high rates of in­
flation lead to high interest rates and
low rates of inflation lead to low in­
terest rates—at least over any
reasonable period of time.”
Boykin said, however, that the dif­
ference now is due to fear about two
possible developments. “ The first fear
is that inflation will reaccelerate. As
my earlier remarks have indicated, I
don’t share this fear. We have, in my
opinion, a fundamental slowing in the
rate of inflation. And I anticipate that
the rate of inflation for this year and in
1983 will be very, very low—probably

I

lower than most people are expecting
at the present time.”
“ Wrapped up in this fear that infla­
tion will reaccelerate is, of course, the
assumption that the Federal Reserve
will not stick to its goal of continuing
to slow the growth in money so as to
keep inflation down,” Boykin said.

Fundamental fear
“ A more fundamental fear regarding
monetary policy, however, is that the
Federal Reserve will monetize the huge
Federal deficits that we are facing,”
Boykin said. “ Let me say forthrightly,
we are committed not to do this. We
have no intention of monetizing these
deficits. To do so would be to discard
all the progress we’ve made in inflation
over the past few years and the pain
and suffering that Americans are en­
during would all be for naught.
Moreover, the next effort at reducing
inflation would be even more painful.”

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