Mr. WAYNE. Yes, sir; banks have an excess of reserves over required amount, but this is not uniform.

Throughout the country some banks will be in excess and banks which are deficient, rather than coming to the Federal to borrow, will in effect borrow from the bank which has excess reserves in order to cover its own deficiencies.

Mr. BOLTON. In other words, if Charlie and I were in the banking business, and I had a loan to make and did not have sufficient reserves and he had overreserves and I wanted to borrow some of his reserves, I could do it at a half of 1 percent or

The CHAIRMAN. You can do it within 24 hours or usually it is 24 to 48 hours.

Mr. BOLTON. Well, why is this called a Federal market?

The CHAIRMAN. Federal funds market. Well, it used to be that the Feds made quite a bit of money

Mr. WAYNE. On that?

The CHAIRMAN. No, not on that, but on a similar thing.

Mr. WAYNE. This is called a Federal fund market because what transfers is balances on the books of the Federal Reserve bank, and that is Federal Reserve funds.

Mr. BOLTON. These funds are already in being?

Mr. WAYNE. Right. The advantage of the Federal fund market is that it makes more effective the funds available.

The CHAIRMAN. That is right. I only brought it up because on account of it the banks now very rarely use the discount window, and so you let the Government pay 99 percent of your operating expenses. Mr. WAYNE. This is a matter of definition. I wouldn't agree The CHAIRMAN. Now, you have travel expenses to conventions and meetings, and so forth. There are quite a few charges for that. And, myself

Mr. WAYNE. May I speak to the one on the American Institute of Banking?

The CHAIRMAN. Yes, sir.

Mr. WAYNE. That is an educational organization, as I am sure you are aware, and we do encourage all of our employees to try to improve their education in ways that will enhance their value to us and our membership in that organization is for that purpose.

The CHAIRMAN. Mr. Wayne, you are in the banking business and you do practically nothing at the discount window.

Mr. WAYNE. But banking consists of much more than discountsThe CHAIRMAN. And you are teaching them something that would apply to commercial banks, but does not help them in your business because your business is clearing checks and things like that.

Mr. WAYNE. They teach some commercial law and negotiable instruments, which has a direct effect on us.

The CHAIRMAN. All right. Now, the next one is St. Louis, and you have the Thanksgiving dinner in the bank dining room for all the officers and employees, and then the Christmas dinner, birthday luncheons and flowers for the birthdays, annual dues to the American Institute of Banking, and the tuition for Vanderbilt University, and so forth

Mr. VANIK. Here is an item that I do not understand: Fruit and flowers sent to Hill employees. Now, I pay for my own flowers. Mr. BOLTON. But you do pay for it?

Mr. VANIK. Yes, but I do pay for it and I do not know why the Federal Government should get into that sort of thing.

Mr. SHUFORD. May I reply to that?

The CHAIRMAN. No, that is about Richmond.

Mr. VANIK. Would you suggest that the General Accounting Office would ever approve this sort of thing? I am sure it would not.

The CHAIRMAN. And here is tuition for the University of Wisconsin and training and education, several of them sponsored, and sponsored dinners and luncheon meetings, $686, at the Statler Hilton; $425 to the Statler Hilton, and $1,250-you are paying dues there to the American Banking Association and $5 to the Missouri Banking Association; $115 to the Illinois Banking Association; $528 to the Chamber of Commerce of Metropolitan St. Louis, and the Better Business of St. Louis, $450; $300, Robert Morris Associates; $350 to the Committee of Economic Development, and luncheons and so forth and expenses to conventions.

In all of them the per diem that you give them is several dollars more than the top for Government employees.

I think the top for Government employees is $16, and you indicate here that yours is from $23 to $27.

And I will just put this in the record like it is.

Thanksgiving dinner in bank dining room for all officers and employees.

Christmas dinner in bank dining room for all officers and employees.

Birthday luncheons; a weekly luncheon is
held in bank dining room attended by
officers and employees whose birthday
occurs during that week.

Flowers for birthday luncheons.
Annual banquet of St. Louis Chapter,
American Institute of Banking, attended
by 20 employees who were enrolled in
AIB classes or were local or national
officers or committeeman.

Leather-bound engrossed testimonial docu-
ment presented as a testimonial from the
directors of the bank in connection with
the retirement of President Delos C.
Johns.

Floral offering in connection with the death of an employee.

Annual dinner in bank dining room for all employees who have completed 10 years of service during the preceding 12-month period.

Employees who are officers of the local chapter of the American Institute of Banking or who have been elected as delegates are sent to the annual convention of AIB. The following payments were for traveling expenses:

To convention in Atlanta, Ga.

Do.

To convention in Denver, Colo.

Do.

9154

910 Nov. 29, 1962 July 6, 1962

12. 24

St. Louis-Continued

TRAINING AND EDUCATION

Reference No.

Date

Amount

Tuition, thesis binding, and microfilming,
expenses at Vanderbilt University, Nash-
ville, Tenn.; thesis was entitled "An
Evaluation of the Consistency of the
Defensive and Dynamic Objectives of
Federal Reserve Policy."

Tuition for 2 employees attending the
Stonier Graduate School of Banking.
Registration and tuition for 1 employee at
the 1963 session of the National Trust
School, American Bankers Association.
Registration fee and tuition for 2 employees
attending the NABAC School for Bank
Audit and Control.

Tuition for 5 employees attending the
Graduate School of Banking at the Uni-
versity of Wisconsin.

Cost of night course entitled "Topics in
Statistics," at Washington University,
St. Louis, Mo.

Employees who enroll in courses offered by
the American Institute of Banking, who
attend 80 percent of the class sessions, and
who successfully complete the course are
refunded tuition costs; the following are
refunds to:

5 employees.
18 employees.

Do.

9 employees.

32 employees.

Advance payments of charges for room and
board for employees to attend schools, as
follows:

For 2 employees to attend Stonier Graduate
School of Banking at the University of
Rutgers, June 9-20, 1963.
For 2 employees to attend NABAC School
for Bank Audit and Control at the Uni-
versity of Wisconsin, Aug. 4-17, 1963.
For 5 employees to attend Graduate School
of Banking at the University of Wisconsin,
Aug. 12-23, 1963.

For one employee to attend National Trust
School at Northwestern University,
Aug. 5-24, 1963.

St. Louis Continued

RESERVE BANK SPONSORED DINNER AND LUCHEON MEETINGS HELD OUTSIDE THE BANK

MEMBERSHIP DUES, ETC.

LUNCHEONS IN BANK DINING ROOM OR CAFETERIA