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Total assets.

6,292

6,598

6,851

6,873

194

85

Liabilities:
Current:

Accounts payable and accrued expenses.-
Withheld taxes payable..---

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.690 / 5,921 6.304

6,283

6,851

6,873

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Equity:
Invested capital.

5,522
The Federal Reserve System operates under the provi-

5,616 Retained earnings

168 305 sions of the act of December 23, 1913, known as the Federal Reserve Act (38 Stat. 251), as amended.

Total equity--

5,690 5.921 Program.—To carry out its responsibilities under the

Total liabilities and equity.-

6,292 6,598 act, the Board determines general monetary, credit, and operating policies for the System as a whole and formulates the rules and regulations necessary to carry out the pur

Analysis of Equity poses of the Federal Reserve Act. The Board's principal duties consist of exerting an influence over credit condi- Unobligated balance.

147 284

Invested capital and retained earnings. 5,543 tions and supervising the Federal Reserve Banks and

5,637 member banks.

Total equity-

5,690 5,921 Financing.–Under the provisions of section 10 of the Federal Reserve Act, the Board of Governors levies upon

Balance Sheet (in thousands of dollars) the Federal Reserve banks, in proportion to their capital and surplus, an assessment sufficient to pay its estimated

737 947 expenses. The Board, under the act, determines and Computation of fund balances: Cash in bank. prescribes the manner in which its obligations are incurred Obligated balances, net:

: and its expenses paid. Funds derived from the assess- Current liabilities....

602 677 Accounts receivable, net.

-12

-14 ments are deposited in the Federal Reserve Bank of Richmond, and the act provides that such funds "shall not

Obligated balance, net..

590
90_66

663 be construed to be Government funds or appropriated

Unobligated balance.

147 moneys.” No Government appropriation is required to

284 support operations of the Board.

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Personnel compensation: 11.1 Permanent positions.. 11.3 Positions other than permanent. 11.5 Other personnel compensation

Total personnel compensation.. 12.0 Personnel benefits.. 13.0 Benefits for former personnel. 21.0 Travel and transportation of persons. 22.0 Transportation of things..... 23.0 Rent, communications, and utilities. 24.0 Printing and reproduction... 25.1 Other services.. 25.2 Services of other agencies. 26.0 Supplies and materials. 31.0 Equipment. 42.0 Insurance.

4,861 685

34 324

4 498 355 229 296

87 112

2

5,355 747

27 310

4 467 343 350 588

99 479

4

5,786 811

28 322

5 406 395 563 327

97 126

2

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Financing:
14 Receipts and reimbursements

from Non-Federal sources:
Agricultural financing pro-
gram:
Loans repaid..

-1,082,054 -1,039,088 -1,126,732
Revenue and other receipts.- –40,072 -43,359 -48,093
Proceeds from sale of fixed
assets and other..--

-83
Sale of capital stock, pri-
vate interest..

-4,418 -6,300

-6,550 21.98 Unobligated balance available, start of year.

-43.816 --43,998 - 44,735 24.98 Unobligated balance available, end of year.

43,998 44,735 45,335 67 Net increase from borrowings

from public:
Debentures and notes pay-
able issued...

1,789,410 1.636,000 1,764,000
Debentures and notes pay-
able repaid.---

1,734,010

1,553,825 1,707,000 Net borrowings...

55,400 82,175

57,600

Personnel Summary

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Net expenditures are distributed as fol

lows: Identified under trust fund expenditures...

37,092 Not identified under trust fund expenditures...

-276 Not included under trust fund expenditures...

16,901 condition.

1 Balances of selected resources are identified on the statement of brasca

Capital outlay, funded:

Loans made.
Purchase of fixed assets.

2,674

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Financial Condition (in thousands of dollars)—Continued

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The banks for cooperatives, of which there are 13, are under the general supervision of the Farm Credit Administration. They finance the operations of farmers' cooperatives. During 1964, the banks extended credit totaling $1,061 million. The funds to finance these loans are obtained from (1) sales of debentures to the public, (2) notes payable, and (3) their own capital. The debentures which the banks issue are not guaranteed by the U.S. Government either as to principal or interest. The banks' capital funds consist of capital stock owned by the U.S. Government, equities of borrowing cooperatives and retained earnings.

The Farm Credit Act of 1955 provides for eventual ownership of the banks by farmers' cooperatives and the retirement of the U.S. Government's investment. At the time the 1955 act was passed the U.S. Government had an investment in the banks of $150 million. By June 30, 1964, this investment had been reduced to $67 million while the equities of borrowing cooperatives had reached nearly $114 million. It is expected that additional repayments of Government capital of $13,500 thousand and $14 million will be made in 1965 and 1966, respectively.

All expenses, including administrative costs, are paid from the banks' own resources and thus in no way do they affect the Budget of the United States.

Net equity:
Privately owned equity:

Capital stock..
Earned surplus (retained earn-

ings):
Surplus allocated to patrons.
Surplus--reserved.

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Total privately owned

equity-Government equity:

Capital stock
Surplus-reserved (retained earn-

ings)

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OTHER INDEPENDENT AGENCIES-Continued

Program and Financing (in thousands of dollars) --Continued

FARM CREDIT ADMINISTRATION—Continued

1964 actual

1965 estimate

1966 estimate

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1964 actual

1965 estimate

1966 estimate

-510

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3,000

costs,

As

1

101

FEDERAL INTERMEDIATE CREDIT BANKS

Net expenditures are distributed
Program and Financing (in thousands of dollars)

as follows:
Identified under trust fund
expenditures-

182,203 207,578 228,050
Not identified under trust fund
expenditures..

-1,605

1,125 Program by activities:

Not included under trust fund Operating costs, funded:

expenditures...

14,380 4,300 Operating expense.

5,602 6,135 6,483 Interest expense. 79,637 93,382 101.847

i Balances of selected resources Other costs:

are identified in the statement of financial

condition. Federal franchise tax.

3,093 3,401 3,619 Loss on sale of U.S. securi

The Federal intermediate credit banks, of which there ties, net.

191

13
Miscellaneous

7
41

are 12, are under the general supervision of the Farm

Credit Administration. They serve as banks of discount Total operating

for agriculture, discounting agricultural and livestock funded.. 88,530 102,972 111,949

paper for local financing institutions, such as production Capital outlay, funded:

credit associations, agricultural credit corporations

, Loans made..

4,968,833 5,065, 156 5,478, 301 livestock loan companies, and commercial banks. They Purchase of fixed assets.

301

also provide the production credit associations with Total capital outlay.---- 4,969,134 5,065,156 5,478.301

necessary supervision and services. During the fiscal

year 1964, the banks extended credit totaling $4.7 billion. Other: Borrowers' equities re

The banks' lending funds are obtained primarily from tired..--

20

the sale of debentures to the public and from their own

capital funds. The debentures are not guaranteed by the
Total program costs, funded. 5,057,684 5,168,128 5,590,250
Change in selected resources

97
152

U.S. Government either as to principal or interest.

The banks were originally wholly-owned Government 10 Total obligations..

5,057,781 5,168,280 5,590,351 corporations set up exclusively as banks of discount; Financing:

however, pursuant to the Farm Credit Act of 1956, the 14 Receipts and_ reimbursements

banks became mixed-ownership corporations and were from non-Federal sources:

made responsible for supervising the production credit Loans repaid..

-4,754,515 -4,831,047 -5,229, 416 Revenue and other receipts. -102,827 -118,366 - 128,960

associations and assisting them to make sound credit Capital advances from Treas

available to farmers. -5,600 -7,000

All of the capital stock of the Federal intermediate 21.98 Unobligated balance available, start of year. -122,570 -124,245 -123,578

credit banks from organization in 1923 to December 31, 24.98 Unobligated balance available,

1956, was held by the U.S. Government. The 1956 act 124,245 123,578

122,653 provided a long-range plan for the eventual ownership of 40 Net increase from borrowings

the credit banks by the production credit associations and
from public:

the gradual retirement of the Government's investment
Debentures and notes payable
issued.....
3,456,161 3,738,700 4,051,450

in the banks. However, because of the increased credit Debentures and notes payable

demands placed upon the Federal intermediate credit repaid.

3,259,651 3,527,500

3,820,400 banks, it has been necessary for the Government to invest
Net borrowings
196,514 211,200 231,050

additional capital in the banks in order to keep the debt

to-capital ratios within the 10 to 1 maximum permitted Relation of obligations to expendi

by law. At June 30, 1964, the U.S. Government's

investment in the capital stock of the banks was $120 10 Total obligations.

5,057,781 5,168,280 5,590,351 million and that of private interests was $60 million. 70 Receipts and other offsets (items 11-17)-------4,862,942 -4,956,413 -5,358,376 All expenses, including administrative costs, are paid

affect

from the banks' own resources and thus in no way 71 Obligations affecting

the Budget of the United States. penditures.

194,839 211,867 231,975 72.98 Obligated balance, start of year.. -160

-299

The Farm Credit Administration expects to transmit

200 74.98 Obligated balance, end of year.-

299 -200

to Congress in January 1965 proposed legislation which, 90 Expenditures..

194,978 211,368 232,175

among other things, will broaden the legal maximum debt-to-capital ratios of the banks. Assuming no drastic

changes in agricultural conditions, enactment of this Cash transactions:

legislation will make it unnecessary for the banks to draw 93 Gross expenditures: Expenditures excluding supplemental - 5,049,318 5.161.128

on the Short-Term Credit Investment Fund for additional 94 Applicable receipts... -4,854,340 -4,949,760 -5,355,896

for 1966 were prepared on this basis.

ury..

end of year.

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i No provision is made in this report for disbursements which might be made by reason of additional bank closings after September 30, 1964 (the date on which this report was prepared), because there is no sound basis for predicting which banks, if any, will close in the future,

· Balances of selected resources are identified on the statement of financial condition,

1 The changes in these items are reflected on the program and financing schedule.

750–100_654-79

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