I RESEARCH LIBRARY I /- e- \ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table of Contents c The once agrarian southeastern From the Boardroom ........3 r‘.. economy has grown into a diverse machine powered by industries both Industry in the Southeast: .4 old and new. Today, the region’s Yesterday, Today workers may be employed in fields and Tomorrow.. ............ .6 as dive= as financial services tour- ism, farming or aerospace That di- After 1983 Recovery versity is suggested by our cover, District Faces 1984 which portrays visitors enjoying an With Optimism. ............10 amusement parRs parachute ride a millworker dry-finishing upholstery The Atlanta Fed fabric, and employees in a stateof- in the New Environment ... 12 theart wood products facility prcr ducing structural panels Acnxss the Directors and Officers ......20 Southeast, new high-tech manufac- turing firms are using sophisticated Branches. ..................22 techniques to produce advanced materials and systems for commer- Financial Statements.. ... .24 cial and military customers Tradi- tional employers, such as textile and apparel manufacturers, also are adapting technology to make their products more competitive in world markets In this year‘s annual report, we will look at the evolution of our region’s economy from pic neering days to today’s era of the Space Shuttle We will also look at how the Federal Reserve Bank of Atlanta-one of 12 regional banks within the Federal Reserve System- is attempting to serve the financial institutions other businesses and consumers in the Sixth Federal Re serve District as they cope with a changing environment For additional copies, write to: Information Center Federal Reserve Bank of Atlanta P. 0.Box 1731 Atlanta, Georgia 30301-1 731 (404)521 -8788 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis --*Boardroom 3 In a number of ways 1983 was a first vice president’s position vacated Federal Reserve’s 12 regional banks 6 memorable year for the Federal Re when Mr. Forrestal assumed the presi- We solidified our ranking during the serve Bank of Atlanta At the end of dency. Billy H Hargett another senior year through the persistent efforts of the year, a new president and a new vice president was named executive our dedicated staff. e-cboa;d chairman were ap- We have been able to im- ? ?pointed at the Atlanta Fed prove our efficiency while ensuring that new manage continuing to reduce per- 1 I ment was in place as we sonnel at all six of our of- fices-in Atlanta Binning 4 entered 1984. Robert P. Forrestal, a 13-year veteran ham, Jacksonville, Miami, with the Bank and most re Nashville and New Orleans ’’cently its first vice president Our employment, which peak- was named president in De ed at 2,850 in 1975, had - cember. John H Weitnauer, been pared to just over 2,000 - Jr, formerly the Bank’s deputy employees by year-end-a 5 chairman, was designated remarkable accomplishment chairman effective Januaq 1, at a time when nearly every 1984. phase of our workload has William F. Ford who had been expanding Since 1975, served as president since for instance check-process- =* August 1980, resigned in ing volume has increased September to return to San from 1.6 to 1.9 billion items T Francisco to become presi- annually, and the amount of dent of First Nationwide Fi- cash handled has risen by nancial Corporation and its some 128 percent e subsidiary, First Nationwide To alleviate a difficult space -_Savings problem in Jacksonville we Mr. Weitnauer, chief execu- awarded a contract in Octe ;* ;* tive officer of the Atlanta- ber for a new building at based Richway retail chain, that branch to replace the ’ became chairman as William aging facility there We expect A Fickling Jr., who heads that the new buildingwill be 7 Charter Medical Corporation Chairman Weitnauer, seated.with President Forrestal and Deputy Chairman Currey. ready to se-gDismct ‘aAof Macon, Georgia- ended his four vice president succeeding Arthur H. institutions by the first quarter of years in that position Mr. Weitnauer Kantner, who retired after more than 1986. was succeeded as deputy chairman 31 years service Named as new senior The Monetary Control Act of 1980 A by Bradley Currey, Jr., president of vice presidents were H. Terry Smith transformed our way of life-and that Rock-Tenn Company of Norcross, and Charles D. East. Mr. East was of the financial services industry-by I- Georgia succeeded as bmch manager in Jack- requiring that Reserve Banks charge r4<We would like to express our thanks sonville by James Hawkins previously financial institutions directly forvar- to Mr. Ford and to Mr. Fickling for branch manager in New Orleans; Mr. ious services once provided without * their leadership over the past several Hawkins, in turn, was succeeded as an explicit charge In response, the years Both will be remembered here New Orleans’ senior officer by Henry Atlanta Fed has phased in charges for as professionals who lent their con- Bourgaux At the Atlantaoffice,Wadyn check processing securities and non- siderable knowledge and experience Bassler was promoted to vice president cash collection, wire transfers net a +to the Atlanta Fed during a pivotal of planning and product development settlements and the automated clear- * 9eriod in its history. We are pleased that during 1983 inghouse - Early in 1984,Senior Vice President the Atlanta Fed maintained its high Clearly, the 1980 act encouraged - Jack Guynn was promoted to fill the standing in performance among the both the Federal Reserve and other i 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis - I’ financial institutions to serve the revid Inflation, which surged to a discussion to that region-the in- 4: public even better. For this reason, we distressing 13.5 percent in 1980 mea- dustries that make it tick and its are convinced that our entry into the sured by the consumer price index, economic outlook-later in this report, 6 free market is proving beneficial to had cooled to the 3-4 percent range Generally, the banks within our both the public and the financial late in 1983. The Federal Reserve has District shared in the benefits of the p services industry. continued to monitor the situation national revival. Despite an influx of - Other elements also have fueled carefully for any evidence that run- new nonbank competitors most banks - competition in the financial services away prices might be returning. Un- have managed to expand their earnings - marketplace including the entry of employment, which peaked at 10.8 stead@. Savings and loan associations , nonfinancial firms into business amis percent nationwide in December 1982, also are joining in the recovery, after that once were the exclusive domain had declined below 8 percent by early suffering through a painful period of commercial banks Formal deregu- 1984 as companies continued to re that began when interest rates rose lation is also responsible for a measure call furloughed workers in response sharply early in the 1980s of that competition, and aggressive to reawakening consumer demand Even the failure of several banks =- financial firms have led the way by Business also has continued to re within the District served ultimately ~ pioneering many new services vive in the Sixth District-which in- to demonstrate the overall stabilityof , In the Southeast, increased com- cludes all of Alabama Florida and the nation’s banking system. In each petition has been inspired further by Georgia.andpartsofLouisiamMissi4 case, the troubled bank reopened the arrival of several out-of-statethrift sippi and Tennessee Despite lingering promptly under new ownership and ~ institutions Over the past two years, problems, the Southeast clearly is a through it all, no depositorlost funds the Federal Home Loan Bank Board dynamic region well positioned for To assure a dialogue on the most *- has authorized a few strong thrifts the future We will devote further effective methods for monitoring the from other states to acquire trou- bled institutions within the District Some of those recently-arrived t Chart 1. U. S. Consumer Price Index organizations have expanded their Percent Change A- beachheads by pursuing new ven- to I I tures that would have been denied to them in more restrictive earlier Ye- Our District’s financial institutions have responded aggressively to this challenge Most appear to be position- ing themselves for the new compe tition- in some cases even negotiating agreements with potential future merger partnem in neghboringstates- to meet the challenge both today and in a hture era of even greater operating freedom. In the broader economy, the new year finds both the nation and the region enjoying a vigorous economic 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis ’. -I .I --..-.I .I-. .. -‘-”>- I i -d I I i -health of financial institutions, the Bank sponsored a tweday symposium -;on the subject. That symposium brought together securities analysts I *t and representatives of various regu- ’latory agencies including the Federal d Resenre, the Federal Deposit Insurance Corporation, the Office of the Comp the Resident’s Council of Economic Mdsexpanded coverage and new 51 troller of the Currency and the Se Advisers; James C Miller IIL Federal app- ham in- its circulation curities and Exchange Commission. ”hde Commission chairman.AlbertM. from about 18,000 early in 1981 to Despite generally favorable eco- Wojnilower, chief economist of First the 28,000 range going into 1984. nomic developments, some clouds Boston Corporation; Jay W. Forrester The newsletter‘s mailing list had continue to shadow the recovery, in- of the Massachusetts Institute of Tech pwnto nearly 6,500 at year-end - 1 cluding hlgh interest rates unemploy- nolo@ Congressmen Newt Gingrich We feel that maintaining a close ment the federal budget deficit and and Bill McCollw Anthony Solomon, relationship with our business com- the international debt problem.