Invested capital.. The Federal Reserve System operates under the provi- Program. To carry out its responsibilities under the Total equity... Total liabilities and equity... Financial Condition (in thousands of dollars) Invested capital and retained earnings. Financing. Under the provisions of section 10 of the prescribes the manner in which its obligations are incurred Obligated balances, net: Obligated balance, net. Unobligated balance....... 1963 1964 1965 actual estimate estimate 1962 actual Analysis of Equity 7,528 8,590 8,623 7,341 8,611 8,703 737 12 21 793 4,063 666 6,292 96 146 -50 388 214 602 Calendar year 5,522 168 187 147 5,543 5,690 137 168 305 737 602 -12 590 147 1963 actual 947 14 Calendar year Balance Sheet (in thousands of dollars) 448 229 677 -21 117 162 -45 -66 305 239 21 21 793 793 4,065 4,065 1,207 758 6,598 6.851 947 677 -14 663 284 753 12 310 237 547 284 218 5.637 6,086 5,921 6,304 1964 1965 estimate estimate 753 -80 547 -12 535 218 117 165 -48 -128 239 111 668 12 21 793 4,065 1,314 6,873 350 240 590 6,172 111 90 6,193 6,283 668 590 -12 578 90 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. Revenue, Expense, and Retained Earnings (in thousands of dollars) ANNEXED BUDGETS 1965 1966 estimate estimate -147 -41 -188 -50 12,514 11,278 12,978 107,752 109,976 111,976 -1,874 -1,650 -300 -7,328 -331 -1,300 -300 -8,978 -8,085 -300 114,076 38 129 344 64 817,720 -50 111,976 1965 1966 estimate estimate 12,000 45,000 831,500 11,800 250 600 350 65 901,565 12,000 46,000 886,950 12,500 Financial Condition (in thousands of dollars)—Continued 1963 actual Liabilities: Total liabilities. 250 1,650 350 65 959,765 Net equity: Privately owned equity: Surplus allocated to patrons. Total privately owned Government equity: Unobligated balance.... Total net equity.. 20,926 23.476 24,065 459,000 497,500 577,000 10,425 27.325 30.000 35.000 25,165 629,000 490.351 548,301 631,065 689,165 80,112 19,641 40,518 140,271 80,911 47,593 Total Government equity.... 128,504 Total net equity.... Total liabilities and net equity... Total costs, funded.. 94.0 Change in selected resources. 99.0 Total obligations......... 1964 1965 1966 actual estimate estimate 43.816 224,959 268,775 92,419 105,000 Analysis of net equity (in thousands of dollars) 11.1 Personnel compensation: Permanent positions... 21.0 Travel and transportation of persons.. 32.0 Lands and structures.. 33.0 Investments and loans.. 43.0 Interest and dividends.. 92.0 Undistributed: Operating expenses.. Federal franchise tax. Loss on sale of securities.. Capital stock and surplus retired. 165,356 185,440 67,024 53,524 39,524 37,039 31.536 23,178 104,063 85,060 62,702 268,775 269,419 270,500 270,600 21,865 23,865 25,965 51,072 56,575 64,933 759,126 817,720 901,565 959,765 NON-FEDERAL EMPLOYEES Average number of all permanent employees... Average salary.. 1 The changes in these items are reflected on the program and financing schedule. Object Classification (in thousands of dollars) 117,000 1964 actual 43,998 44,735 45.335 225,421 225,765 225,265 269,419 270,500 270,600 207,898 Personnel Summary 2,291 2,469 2,619 199 232 270 72 471 1,050 1,139,814 1,123,000 1,184,132 21,916 25,974 28,682 257 $8,917 1965 1966 estimate estimate 1,786 1,615 1,181,845 1,170,185 1,237,775 OTHER INDEPENDENT AGENCIES-Continued 10 14 40 10 70 93 94 Federal franchise tax.. ties, net. Miscellaneous. Total operating costs, Capital outlay, funded: Purchase of fixed assets.. Total capital outlay. Other: Borrowers' equities retired.. ury.. 21.98 Unobligated balance available, Total program costs, funded. Change in selected resources 1-- Total obligations.. Financing: Receipts and reimbursements Net increase from borrowings from public: Debentures and notes payable issued.. Net borrowings... Relation of obligations to expendi tures: Total obligations.. Receipts and other offsets (items 11-17)-- 71 Obligations affecting expenditures.... 72.98 Obligated balance, start of year.. 74.98 Obligated balance, end of year...... 90 Expenditures.. Cash transactions: Gross expenditures: Expenditures excluding supplemental. Applicable receipts... 1964 actual 5.602 79,637 3,093 191 1965 estimate 6,135 93,382 3,401 13 41 194,839 194,978 5,168,128 5,168,280 1966 estimate 5,065,156 5,478,301 6,483 101,847 3,619 5,065,156 5,478,301 3,456, 161 3,738,700 111,949 -4,754,515 -4,831,047-5,229,416 211,867 -200 211,368 5,590,250 5,590,351 5,057,781 5,168,280 5,590,351 -4,862,942 -4,956,413 -5,358,376 231,975 Program and Financing (in thousands of dollars)—Continued 1964 actual 232,175 1965 1966 estimate estimate -123,578 4,051,450 All of the capital stock of the Federal intermediate credit banks from organization in 1923 to December 31, 1956, was held by the U.S. Government. The 1956 act 122,653 provided a long-range plan for the eventual ownership of the credit banks by the production credit associations and the gradual retirement of the Government's investment in the banks. However, because of the increased credit demands placed upon the Federal intermediate credit 3,820,400 banks, it has been necessary for the Government to invest additional capital in the banks in order to keep the debtto-capital ratios within the 10 to 1 maximum permitted. by law. At June 30, 1964, the U.S. Government's investment in the capital stock of the banks was $120 million and that of private interests was $60 million. 231,050 All expenses, including administrative costs, are paid from the banks' own resources and thus in no way affect the Budget of the United States. The Farm Credit Administration expects to transmit to Congress in January 1965 proposed legislation which, 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 legislation will make it unnecessary for the banks to draw on the Short-Term Credit Investment Fund for additional -4,854,340 -4,949,760 -5,353,876 purchases of their capital stock after 1965. The estimates for 1966 were prepared on this basis. 5,049,318 5,161,128 5,586,051 1 Balances of selected resources are identified in the statement of financial condition. The Federal intermediate credit banks, of which there are 12, are under the general supervision of the Farm Credit Administration. They serve as banks of discount for agriculture, discounting agricultural and livestock paper for local financing institutions, such as production credit associations, agricultural credit corporations, livestock loan companies, and commercial banks. They also provide the production credit associations with necessary supervision and services. During the fiscal year 1964, the banks extended credit totaling $4.7 billion. The banks' lending funds are obtained primarily from the sale of debentures to the public and from their own capital funds. The debentures are not guaranteed by the U.S. Government either as to principal or interest. The banks were originally wholly-owned Government corporations set up exclusively as banks of discount; however, pursuant to the Farm Credit Act of 1956, the banks became mixed-ownership corporations and were made responsible for supervising the production credit associations and assisting them to make sound credit available to farmers. |
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