Productivity And Efficiency In The Federal Reserve System

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This afternoon, it is my distinct pleasure to be with you at this dedication ceremony to speak about the gains in productivity and efficiency that technology bringing to the Federal Reserve. We are standing in an exemplar of this phenomenon. This new structure — which succeeds a building dating to 1927— will for the first time use automated guided vehicles and an automated stacking and retrieval system to process and store both currency and coin. Until now, we've used such systems only for currency.
Buildings such as this new Brimming ham Branch , employing the most modern technologies , are central to3 the! System's continued fulfillment of the basic purposes and functions for which il was founded more than eighty years ago. However, we should note that, as important as such buildings are in our endeavors to maintain a prosperous < economy, a safe and strong financial system, and a reliable and efficient pay ment system , people — not machines — remain at the heart of whatever sock we have achieved. 1 am speaking of the dedicated professional men women employed at this and other Federal Reserve ...
... offices and of the public-spirited citizens who give of their time and expertise as directors advisers to our Banks and Branches. I am also referring to the many outside the System who recognize the importance of safeguarding and sup ing the nation's independent central bank.
Thus, at the outset, I would like to acknowledge the important assistance i have received from the members of Congress from Alabama. In 1 992 , helped win passage of an amendment to the Federal Reserve Act that us to move forward on this project. We are grateful to Senator Richard ; by, who succeeded in moving the legislation through the Senate, and to 1 mer Congressman Ben Erdreich, who sponsored the bill through the House
Representatives. Without their efforts we would not have been able to con-' Steuct this new Branch.
Convenience and efficiency in coin and currency distribution and in check-processing may be the least of the benefits flowing from this far-flung network jf offices, stretching from Seattle to San Antonio and from Buffalo to Birmingham. Our System's broad geographic reach also ensures that we who have the privilege of serving as policymakers — the presidents of the regional Banks and he Board members in Washington — receive a clear sense of the economic and xjsiness life beyond the Beltway, which encircles the nation's capital.
fes keen observers of local economies, the directors here and elsewhere confute vitally to the formulation of monetary policy by offering important in-fights absent from even the most careful analysis of aggregate data. 6 Often they how what is happening in the various regions of the country well before the and data are collected by national statistical agencies. Most importantly, this angular system of broad and diverse representation , nurtured by close con-lets at the regional and local levels , fosters a long-term perspective and continuity.
p it is, on this special and festive occasion in the life of the Federal Reserve, lat this exceptional new structure, which benefits from the latest technologist innovation , reminds us of our fundamental purposes and our roots. It re-lands us that the regional Banks and local Branches, and the people who srve in them , are an integral part of central banking in this country. It stands s a testament to the continued success of our unique type of "decentralized" Mitral banking.