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2. FEDERAL RESERVE NOTE STATEMENT END OF YEAR FIGURES (5-YEAR INTERVALS 1915-40 AND EACH YEAR 1941-51)

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[In thousands of dollars]

Federal Reserve notes:

Issued to Federal Reserve bank by Federal
Reserve agent....

Held by Federal Reserve bank and for-
warded for redemption.....

Federal Reserve notes, net 1_

Collateral held by Federal Reserve agent for
notes issued to bank:

Gold and gold certificates

Eligible paper......

U. S. Government securities.

Total collateral held..

1915

1920

1925

1930

1935

1940

214, 125

25, 308
188,817

3,735, 731
399, 450

3, 336, 281

2, 205, 560
367,398
1,838, 162

2,093, 625
430, 087
1,663, 538

4,047, 052
337,978

3, 709, 074

197, 450
16,740

1,277,875
2,854, 980

1,372, 281
948, 803

1,730, 439
507, 788

3,970, 843
2,716
127,500

214, 190

4, 132, 855

2, 321, 084

2, 238, 227

4, 101, 059

6, 256, 650
325, 653

5, 930, 997

6,379, 500
1,688

6,381, 188

1944

1945

1946

1947

1948

Federal Reserve notes:

Issued to Federal Reserve bank by Federal Reserve agent.
Held by Federal Reserve bank and forwarded for
redemption.......

22, 507, 705

25, 633, 380

25,741, 60625, 705, 984

776,688

Federal Reserve notes, net 1

21, 731, 017

984, 248
24, 649, 132

796, 302

885, 550

24, 945, 304

24, 820, 434

25, 127, 171
966, 068
24, 161, 103

Collateral held by Federal Reserve agent for notes issued to
bank:

Gold and gold certificates....

Eligible paper....

11, 298, 000
79,625

10, 523, 000
201, 455

11,053,000

12, 719,000

13, 579,000

12,812

32, 410

30,080

U. S. Government securities..

11, 534, 902

15, 403, 201

15, 226, 565

13, 550,000

12, 200,000

Total collateral held..

22, 912, 527

26, 127, 656

26, 292, 377

26, 301, 410

25, 809, 080

1 Includes Federal Reserve notes held by the U. S. Treasury and by Federal Reserve banks other than the issuing bank.

3. MATURITY DISTRIBUTION OF LOANS AND SECURITIES OF FEDERAL RESERVE BANKS,

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Callable Government securities classified according to nearest call date.

4. BANK PREMISES OF FEDERAL RESERVE BANKS, AND OTHER REAL ESTATE ACQUIRED FOR BANKING-HOUSE PURPOSES, AT END OF YEAR (FIVE-YEAR INTERVALS 1915-40 AND EACH YEAR 1941-51), INCLUDES LAND, BUILDING AND VAULTS, AND FIXED MACHINERY AND EQUIPMENT

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1951.

1 Included in "Bank premises."

116,791

43,600

2,205

1, 534

5. TAXES ON BANK PREMISES PAID BY FEDERAL RESERVE BANKS (AT 5-YEAR

INTERVALS, 1915-40, AND BY YEARS 1941-51)

1915

1920

1925

1930

1935

1940

1941

1942

1943

Amount

1944

$56, 582 1945

1, 293, 059 1946

1,374,368 1947

1, 401, 641 1948

1,493,058 1949

1,498, 243 1950

1,508, 451 1951

Amount

$1, 495, 612

1, 510, 801

1, 615,314

1,786,651

1,850,018

1,937, 416

1,954,043

2,071, 841

1, 475, 344

NOTE. Most of the Reserve bank buildings were occupied during the early twenties.

6. VOLUME OF CHECKS HANDLED BY FEDERAL RESERVE BANKS (AT 5-YEAR INTERVALS AND BY YEARS 1941-51)

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Not including checks on the Federal Reserve banks, included in prior years. In 1950 there were 1,785,000 of these items amounting to $178,120,377,000.

NOTE. Two or more checks handled as a single item are counted as one piece.

7. NUMBER OF OFFICERS AND EMPLOYEES OF THE FEDERAL RESERVE SYSTEM

Federal Reserve banks
(including branches):

Boston.
New York.
Philadelphia.
Cleveland.
Richmond..
Atlanta...
Chicago.
St. Louis
Minneapolis..
Kansas City.
Dallas...
San Francisco.

As of Dec. 31

1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951

720 924 1,257 1,409 1,417 1,403 1,369 1,266 1,285 1,240 1,257 1,461 2,520 3,095 3,871 4,680 4,644 4,574 4,414 3,985 4,010 3,673 3,611 4,038 793 944 1,252 1,546 1,594 1,706 1,265 1,117 1,082 1,068 1,097 1,238 956 1,157 1,902, 2, 283 2,302 2,224 1,916 1,830 1,778 1,687 1,688 1,815 674 794 1,177 1,448 1,532 1,534 1,411 1,357 1,308 1,246 1,216 1,316 750 885 1,177 1,485 1,550 1,527 1,320 1,085 1,028 953 960 1,094 1,849 1,996 2,963 3,865 3,760 3,371 3,156 2,895 2,941 2,723 2,656 2,924

695

824 1,136 1,551 1,484 1,521 1,359 1,219 1,161 1,097 1,121 1,263 441 590 880 904 814 786 699 657 644 638 689 714 692 831 1,179 1,370 1,397 1,346 1,223 1,128 1,139 1,060 1,064 1,102 757 1,127 1,473 1,297 1,222 1,097 920 954 951 935 949 903 1,286 2,051 2,727 2,651 2,308 2,201 1,905 1,751 1,631 1,699 1,918

647

Subtotal.

Board of Governors 1..

11, 640 14,083 19, 972 24, 741:24, 442, 23, 522, 21, 430 19,364 19,081 17, 967 17, 993 19,832 449 464 432 469 450 460 489 506 522 545 574 584

System total 12,089 14, 547 20, 404 25, 210 24, 892 23, 982 21, 919 19,870 19, 603 18, 512 18,567 20, 416 100 120 169 208 206 198 181. 164 162 153 154 169

Index (1940-100)

1 Does not include members of the Board.

NOTE.-Includes part-time employees. Each such employee counted as one.

8. AVERAGE NUMBER OF OFFICERS AND EMPLOYEES OF FEDERAL RESERVE BANKS, FOURTH QUARTER 1951

Total officers

-

349

Employees assigned to various functions:1

1 Part-time employees included only for proportionate part of day worked (i. e., an employee working one-half of a day is counted as 0.50).

Check collection___

Fiscal agency:

Public debt_

Government checks__

Post-office money orders..

Federal taxes___

Other fiscal agency units....

General service:

Mail and express_

Protection and vault maintenance_

Other general service units----

Currency and coin

Provision of space (operation and maintenance of buildings)

Accounting

Provision of personnel__

Research and statistical.

Bank examination___.

Noncash collection_

Auditing

Consumer credit______

Securities

All other functions_.

Total employees.

Total officers and employees

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9. STAFF OF BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM BY DIVISION

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Total employees of the Board (excluding Board members).

Number of

persons

21

37

20

5

133

48

53

53

18

177

19

584

10. COMPARISON BETWEEN BENEFITS OF CIVIL SERVICE AND FEDERAL RESERVE RETIREMENT SYSTEMS

The Federal Reserve retirement system contains two plans, one applicable to the employees of the Federal Reserve banks and the other applicable to the majority of the employees of the Federal Reserve Board. Certain other employees of the Board are members of the civil-service retirement system, having had such status at the time they were employed. The remarks below pertain to the plan applicable to the Reserve banks. The benefits and cost to the employee of the other plan at the Board of Governors are the same as those of the civil-service retirement system.

The Federal Reserve retirement system is a combination of a fixed retirement allowance and an annuity purchase plan. The pension portion of the retirement allowance, i. e., the amount provided by the Reserve banks, is on a straight-life basis while the annuity portion, i. e., the amount provided by the employee's contributions, is on a cash-refund basis.

The civil-service retirement allowance, on the other hand, is on a fixed-formula basis with both the pension and the annuity on a straight-life basis except that a member must receive back in benefits at least an amount equal to his accumulated contributions.

The basic retirement allowance provided by the Federal Reserve retirement system is an amount equivalent to

1. An annuity equal to the value of his accumulated contributions, 2. A pension equal to 1 percent of highest average salary for five consecutive years of service multiplied by the years of service. If the member is also a member of social security, his pension is equal to one-half of 1 percent of the first $3,600 of his salary. (The Reserve bank and the employee make contributions to social security.) As in civil service, the lower salaried members of the Federal Reserve retirement system receive proportionately more than those in the higher salary brackets in that a minimum allowance equal to $32 for each year of service is guaranteed.

Under civil service, the basic allowance is equal to 11⁄2 percent of highest average salary for five consecutive years multiplied by years of service or 1 percent of such salary for each year of service plus $25 for each year of service, depending upon which formula gives the higher allowance.

Under the Federal Reserve retirement system, the retirement age is 65. Any person, regardless of the amount of service, retiring before that age, has his allowance reduced actuarially to his attained age. Under civil service, retirement age is 70 with provision for optional retirement at a reduction much less than the actuarial equivalent being made in cases where a person retires before age 60.

Unlike civil service, the Federal Reserve retirement system gives credit only for service rendered for the Federal Reserve System or for military service occurring during the tenure of employment. Civil service provides that any service for the Federal Government whether civilian or military, and regardless of when performed, is creditable for retirement purposes. If an employee ceases to be a member of the Federal Reserve retirement system and is subsequently reemployed, his previous service credit is not restored to him.

Members of the Federal Reserve retirement system pay a level premium to the retirement system based on age at entrance. These rates vary from 5.40 percent for a male aged 18 years to 11.18 percent for a female aged 64 years. Under current civil-service rules, the contribution rate is 6 percent.

Certain beneficiaries of an employee dying in service receive an allowance from the civil-service retirement system based partly on need and the rights accrued by the employee at the time of death. The beneficiaries of a member of the Federal Reserve retirement system dying in service receive an amount equal to the salary the member received during the last 12 months of service, with a maximum of $25,000.

In the attached table certain data are shown for the last 25 members to retire under the Federal Reserve retirement system.

The designation of "special service" retirement corresponds with optional retirement under the Civil Service Retirement Act and the "service" retirement corresponds to retirement under civil service because of age.

The asterisk (*) indicates that the employee would not be eligible for retirement under the civil-service retirement system. The Federal Reserve retirement system provides immediate allowances after 10 years of service at age 50 actuarily reduced from age 65. Under civil service there is no provision for an immediate allowance unless the member is 55 and has at least 30 years of service.

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