Cover page

The Federal Reserve System

Introduction

President's Foreword

Our Payments System: Challenges and Opportunities

Directors
       Cleveland
       Cincinnati
       Pittsburgh

Officers
and Consultants

Comparative Financial Statements
      Statement of
        Condition
      Liabilities
       and Capital

      Statement of 
       Income
      Statement of
       Changes in
        Capital

1997 Operational Highlights

Business Advisory Council and Community Bank Advisory Council

Credit