View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Statement on the Jacksonville Branch of the Federal Reserve Bank of

Above the doors of the building at 513 Julia Street in
Jacksonville is engraved the inscription, The Federal Reserve System
Through Which Our Banks and Government Join Hands to Further the
Enduring Prosperity of American Commerce, Industry, and AgriculĀ¬
ture . "

This building, erected in 1952, is the latest to house the

Jacksonville Branch of the Federal Reserve Bank of Atlanta. The
history of the Branch reflects the growth of the Florida economy that
it serves. Established in 1918, only four years after the parent Bank
in Atlanta, the Jacksonville Branch has had to move four times since
then, into successively larger quartern, to enable it to handle its
ever-growing volume of work.
For the most part, the Branch has grown because of
economic growth in the area it serves. At the same time, the Branch
has contributed to this growth by providing services that could not have
been performed as efficiently in its absence.
One of the ways in which banks and government cooperate
to serve the Florida economy is by providing it with currency and

Banks throughout Florida send worn-out or surplus cash to the

Branch for destruction or storage and, whenever they need to replenish
the stocks of cash in their vaults, they obtain it from the Branch,

which in turn obtains it from the Treasury.

In this way the public is

provided with a currency supply that is efficient and responsive to its
needs. It has not been an easy job, however, to keep pace with the
fast-growing Florida economy.

For example, in 1926, the Branch

received from commercial banks 24. 4 million pieces of paper money
and 13.1 million pieces of com, but in 1963 the volume had increased
to 132. 8 million pieces of currency and 256. 3 million pieces of coin,
more than a tenfold increase in 27 years.

The value of this flow last

year was over a billion dollars.
Large as these numbers seem, however, they are
dwarfed by figures on check clearings, since most of the nation's busi~
ness is handled by check rather than cash.

The Federal Reserve System

collects for its member banks, free of charge, checks written on banks
la other parts of the country. Last year the Jacksonville Branch handled
more than 107 million checks worth over $36 billion. This is & tremendous
workload, but it attests to the prosperity of Florida's commerce, Indus*
try, and agriculture, and to the growth of Jacksonville as a financial
center. From 1926 to 1963, total deposits of Florida banks increased
nearly tenfold from $625 million to $6.0 billion. In 1963, deposits of
Jacksonville banks alone were almost as large as they were for all banks
in the state in 1926.
In addition to clearing checks for member banks, the
Federal Reserve Banks hold member banks* reserve deposits. Many
thousands of debit and credit these. s are made to these accounts each


month by the Jacksonville Branch in the process of clearing checks and
handling currency and coin, but the reserve account, are also affected
by many other types of transactions.

Member banks may transfer

money and government securities by wire anywhere in the country.
They also may borrow from their Federal Reserve Banka,
As fiscal agents for the U. S. Treasury, the Federal
Reserve Banks issue and redeem government securities and pay
interest on them, clear Treasury checks and postal money orders,
and supervise the Treasury's tax and loan deposits. Periodically, the
Treasury may make calls on these accounts. Currently. such calls
on banks served by the Jacksonville Branch exceed $75O million a year.
One of the virtues of the Federal Reserve System, it
seems to me, is the way in which it combine* the centralised
decision-making necessary for an effective national monetary policy
with a decentralised process of obtaining information and advice.
Thus, every Branch of every Federal Reserve Bank has its own Board
of Directors, composed of outstanding citizens of the Branch area.
Their intimate knowledge of local conditions and their considered
advice are of valuable assistance in solving both the operational and
policy problems that the System meets. The present members of the
Board of Directors of the Jacksonville Branch come from many
different occupations and all parts of the state. Harry J. Vaughn, the


Chairman, is President of the United Stated Sugar Corporation at
Clewiston, Claude J. Yates, a former Chairman, is Vice President
and General Manager of the Southern Bell Telephone Company in

J. Ollie Edmunds, a former Federal judge, is President

of Stetson University in DeLand.

These men were appointed by the

Board of Governors . The parent bank in Atlanta has appointed four
bankers from various parts of the state: William H. Dial, First
National Bank at Orlando; Arthur W. saarinen, Breward National Bank
at Fort Lauderdale; J. L. Lane, Atlantic National Bank of Jacksonville}
and Harry Fagan, First National Bank in Fort Myers. These men and
the more than 300 officers and employees of the Branch, headed by its
very able Vice President and General Manager T. A. Lanford, have
given unstintingly of their time to enable the Jacksonville Branch to
serve the financial needs of the most rapidly growing state in the