F
R
O
M

T
H
E

B
O
A
R
D
R
O
O
M

Last year was an important one for the Federal Reserve Bank of San Francisco in that we both celebrated our history and looked toward our future. The year 1998 marked the 85th anniversary of the establishment of the Federal Reserve System. It was December 23, 1913, when President Woodrow Wilson signed into law the Federal Reserve Act. The Federal Reserve Act stated that its purposes were "to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes." Further legislation has clarified and supplemented these original purposes through the years, but our underlying goals remain.

From left, Nelson C. Rising, Deputy Chairman (1999); Cynthia A. Parker, Deputy Chairman (1998); Robert T. Parry, President; John F. Moore, First Vice President; and Gary G. Michael, Chairman.

This Bank has a long history of outstanding accomplishments. During 1998 we once again reached important milestones that you will read about in this Report, and we assured our operational readiness to enter the next century.

Our directors provided us with invaluable information and leadership throughout the year. Their independent assessment and knowledge of economic and financial conditions throughout our District are essential to the formulation of monetary policy. We thank them all for their contributions.

In particular, we want to express our sincere thanks and appreciation to those directors and advisory council members who retired from Federal Reserve service at 1998 year end: on the Head Office Board, its Deputy Chairman, Cynthia A. Parker (Executive Director, Anchorage Neighborhood Housing Services, Inc., Anchorage, Alaska), and Stanley T. Skinner (Chairman and CEO [Retired], Pacific Gas and Electric Co., San Francisco, CA); on the Los Angeles Branch Board, its Chairman, Anne L. Evans (Chairman, Evans Hotels, San Diego, CA), and Stephen G. Carpenter (Director, California United Bank, Encino, CA); on the Portland Branch Board, its Chairman, Carol A. Whipple (Proprietor, Rocking C Ranch, Elkton, OR), and Thomas C. Young (Chairman, Northwest National Bank, Vancouver, WA); on the Salt Lake City Branch Board, its Chairman, Richard E. Davis (President and CEO, Salt Lake Convention and Visitors Bureau, Salt Lake City, UT), and Roy C. Nelson (President [Retired], Bank of Utah, Ogden, Utah); on the Seattle Branch Board, Constance L. Proctor (Partner, Alston, Courtnage, Proctor & Bassetti, LLP, Seattle, WA); and the Twelfth District Member of the Federal Advisory Council, David A. Coulter (Chairman and CEO [Retired], BankAmerica Corporation, San Francisco, CA).