Comparative Financial Statements

Statement of Income
(in millions)

	For the year ended:
	December 31, 1997	December 31, 1996
Interest income:        Interest on U.S. government securities        Interest on foreign currencies	$1,668 24	$1,382  29
Total interest income	1,692	1,411
Other operating income (loss):        Income from services        Reimbursable services to government agencies        Foreign currency losses, net        Government securities gains, net        Other income	50 24 (165) 1 1	50  23  (109)  2  1
Total other operating loss	(89)	(33)
Operating expenses:        Salaries and other benefits        Occupancy expense        Equipment expense        Cost of unreimbursed Treasury services        Assessments by Board of Governors        Other expenses	69 11 10 1 36 56	68   8  9  2  34  43
Total operating expenses	183	164
Net income prior to distribution	$1,420	$1,214
Distribution of net income:        Dividends paid to member banks        Transferred to surplus        Payments to U.S. Treasury as interest            on Federal Reserve notes        Payments to U.S. Treasury as required by statute	$  19 57 0 1,344	$  16  33  854  311
Total distribution	$1,420	$1,214

Statement of Changes in Capital
(in millions)

	Capital Paid In	Surplus	Total Capital
Balance at January 1, 1996 (5,175,336 shares)      Net income transferred to surplus      Statutory surplus transfer to the U.S. Treasury      Net change in capital stock issued (674,545 shares)	$259 33	$259 33 (6)	$518  33  (6)  33
Balance at December 31, 1996 (5,849,881 shares)       Net income transferred to surplus       Statutory surplus transfer to the U.S. Treasury       Net change in capital stock issued (1,132,457 shares)	$292 57	$286 57 (7)	$578  57  (7)  57
Balance at December 31, 1997 (6,982,338 shares)	$349	$336	$685