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BY-LAWS
of the
FEDERAL RESERVE BANK
OF CLEVELAND
As Amended, Effective January 1, 1952
BY-LAWS
FEDERAL RESERVE BANK
OF CLEVELAND
ARTICLE 1—BOARD OF DIRECTORS
Siefioti 1— Powers. The business of the
l ank /. all be conducted under the super
vision and control of the board of directors
(hereinafter called the “board”), subject to
the supervision vested by law in the Board
of Governors of the Federal Reserve System.
Section 2 — Vacancies. As soon as practi
cable after the occurrence of any vacancy in
the membership of the board, the chairman
thereof shall take such steps as may be neces
sary to cause such vacancy to be filled in
the manner provided by law.
Section 3— Meetings. Unless the board ap
proves or ratifies the holding of a meeting at
a different time, there shall be a regular meet
ing of the board on the second Thursday of
each month, except that if any such meeting
day shall fall upon a holiday, such meeting
shall be held on the next preceding full busi
ness day. The board or the chairman of the
1
board or, in his absence or disability, the
deputy chairman may call a special meeting
at any time, and shall do so upon the written
request of any three directors or of the presi
dent, In the absence or disability of both the
chairman and the deputy chairman, the presi
dent (or in the absence or disability of the
president, the first vice president) may call
a special meeting at any time.
Notice of a regular or special meeting shall
be given by mail, telegraph, or telephone. If
given by mail, such notice shall be mailed at
least three (3) days before the date of meet
ing* If given by telegraph or telephone, such
notice shall be dispatched at least 24 hours
before the date of meeting. Notices of meet
ings need not state the purpose thereof or the
business to be transacted thereat. The provi
sions for notice of regular meetings are direc
tory only, and failure to send the prescribed
notice or failure to transmit it within the
time or in the manner prescribed shall not
invalidate any such meetings held at the
times herein prescribed.
Notice of any meeting may be dispensed
with as to any director who shall, in writing,
waive such notice. Unless otherwise stated in
2
notices thereof, or in the waiver of notice
thereof, all meetings of the board shall be
held at the main office of the bank in Cleve
land, Ohio.
Section 4— Quorum. A majority of the di
rectors shall constitute a quorum for the
transaction of business, and action by the
board shall be upon vote of a majority of the
directors present at any meeting of the board
at which a quorum is present, but less than
a quorum may adjourn from time to time
until a quorum is in attendance.
Section 5—Order of Business. The board
may from time to time make such regulations
as to order of business as to it may seem
desirable*
ARTICLE 3—COMMITTEES
Section 1—Executive Committee. There
shall be an executive committee consisting of
the chairman of the board and four or more
directors. The members of the executive com
mittee shall be chosen by the board and shall
serve during the pleasure of the board, or
for terms fixed by it. Any other director or
directors may attend the meetings of the com
mittee and while so attending shall also be
3
members of the committee for all purposes,
including the requirements hereof with re
spect to a quorum. Three members of the
committee shall constitute a quorum for the
transaction of business, and action by the
committee shall be upon the vote of a ma
jority of those present at any meeting.
Unless the board approves or ratifies the
holding of a meeting at a different time, there
shall be regular meetings of the executive
committee on the second and fourth Thurs
days following the second Thursday of each
month; provided, that if any such meeting
day shall fall upon a holiday, such meeting
shall be held on the next preceding full busi
ness day; and provided further, that if any
such meeting day shall fall upon the date of
a regular meeting of the board, there will be
no regular meeting of the executive commit
tee on that day. In lieu of any meeting of the
executive committee, the members thereof
may hold a telephone conference in which each
participant may hear and be heard by each
other participant, and any business may be
transacted during such a telephone confer
ence which could have been transacted at a
meeting of the executive committee. The busi
ness transacted in any such telephone con
4
ference normally shall be limited to consider
ation of and action upon discount and interest
rates and upon purchases and sales of United
States obligations but, if deemed necessary
or desirable by all the directors participating,
other matters may be considered and acted
upon in any such telephone conference. The
executive committee shall have power to fix
the place of holding regular meetings of the
executive committee and the time and place
of special meetings of said committee. The ex
ecutive committee shall have authority to pre
scribe the method of giving notice of regular
or special meetings of the executive commit
tee; but, unless otherwise prescribed, meet
ings of the committee may be called in the
same manner and upon the same notice, and
notice of such meetings may be dispensed
with in the same manner, as provided in Sec
tion 3 of Article 1 of these by-laws with
respect to meetings of the board. If a quorum
of the members of the board is not present at
a meeting of the board, and if a majority of
the members of the board present at such
meeting so request, the executive committee
shall meet immediately upon the adjournment
of such meeting of the board, and no notice
of such meeting of the executive committee
shall be required.
5
Minutes of all meetings of the executive
committee shall be submitted to the board at
its next succeeding meeting.
Section 2—Powers of Executive Commit
tee. Subject to the supervision and control of
the board, as set forth in Section 1 of Article
1 of these by-laws, the executive committee
shall, between meetings of the board, have
power to direct the business of the bank and
to exercise all the power and authority vested
by law in the board, in so far as such power
and authority may lawfully be delegated to
the committee.
Section 3—Discount Committee. The dis
count committee shall consist of not less than
three members designated by the board. Ex
ecutive officers of the bank may be members
of this committee. The members of the com
mittee chosen by the board shall serve during
the pleasure of the board or for terms fixed
by it, shall select a chairman and a vice chair
man of the committee, and shall adopt such
rules and regulations as are necessary to
carry on its business.
The committee shall hold meetings in the
interim between meetings of the board or ex
ecutive committee, and shall have power to
fix the time of such meetings.
The actions of the discount committee shall
be submitted to the board at its next succeed
ing meeting for ratification and approval.
Section 4—Powers of Discount Committee .
Subject to the supervision and control of the
board, or the executive committee, the dis
count committee shall have the following
powers:
To authorize, ratify, and approve discounts,
loans, commitments, and advances made
under the provisions of the Federal Reserve
Act, as now or hereafter amended, and the
regulations of the Board of Governors of
the Federal Reserve System now existing
or hereafter made; provided, however, that
prior approval of the board shall be re
quired in the case of loans and advances
made under the provisions of Section 10 (b)
of the Federal Reserve Act, as now or here
after amended, secured by collateral of
types other than those specified in para
graphs 1 to 9, inclusive, of Section 2(d) of
Regulation A of the Board of Governors
of the Federal Reserve System, as now or
hereafter amended.
Section 5—Audit Review Committee . The
audit review committee shall have the pri
mary responsibility for maintaining contact
7
with the general auditor, and satisfying it
self (1) that appropriate audit programs and
procedures are maintained by the audit de
partment, and (2) that the general auditor
has proper official status and sufficient staff,
both numerically and qualitatively, to dis
charge the responsibilities of his office with
thoroughness and dispatch, making such rec
ommendations to the board as may be nec
essary to that end.
Section 6—Other Committees. The board
from time to time may create other commit
tees and provide for their membership, pow
ers, and duties.
ARTICLE 3—OFFICERS
Section 1— Officers. The board shall ap
point for terms of five (5) years, commencing
March 1, 1936, a president and a first vice
president, with the approval of the Board of
Governors of the Federal Reserve System.
The board shall also appoint one or more vice
presidents, a secretary, a cashier, a general
auditor, and such other officers and legal
counsel as it may from time to time determine
to be necessary and proper for the conduct
of the business of the bank. The offices of vice
8
president, secretary, and cashier, or any two
of them, may be held by one person, in the
discretion of the board. The appointment of
the president and first vice president for
terms subsequent to the terms of such officers
commencing March 1,1936, shall be made by
the board at a regular or special meeting on or
before March 1 of each fifth year thereafter.
Between meetings of the board of directors
the officers, in behalf of the bank, are author
ized to engage in transactions in United
States Government securities (including both
direct obligations and obligations fully guar
anteed as to principal and interest) in accord
ance with the directions and regulations of
the Federal Open Market Committee.
All such officers, other than the president
and first vice president, shall be chosen an
nually by the board in the month of January
of each year at a regular or special meeting.
All such officers, other than the president and
first vice president, shall hold office during the
pleasure of the board for a term of one year
or until their successors are chosen. The
board, subject to the approval of the Board
of Governors of the Federal Reserve System,
shall fix the compensation of directors and
of all officers and employees.
9
Section 2— Chairman of the Board, The
chairman of the board shall preside at all
meetings thereof and shall be chairman of the
executive committee. He shall perform such
services as may be prescribed from time to
time by the board, not inconsistent with his
duties as Federal reserve agent or chairman
of the board as provided by law.
Section 3—Deputy Chairman of the Board.
In the absence or disability of the chairman of
the board, his powers shall be exercised and
his duties performed by the deputy chairman.
I f the chairman and the deputy chairman
are absent, the third Class C director shall
preside at meetings Of the board. In the ab
sence of the chairman, deputy chairman, and
the third Class C director, the directors pres
ent at a meeting shall select a chairman.
Section 4— President. Subject to the super
vision and control of the board, the president
shall be the chief executive officer of the bank
and shall have general charge and control of
the business and affairs of the bank. The
president shall have power to prescribe the
duties of all other officers, employees, and
agents of the bank, where such duties are not
specifically prescribed by law or by the board
10
or the by-laws, and shall have power to ap
point such committees of officers of the bank
and others as he may from time to time deem
advisable, and to prescribe the powers and
duties of such committees where such powers
and duties are not specifically prescribed by
the board or executive committee. The presi
dent may suspend or remove any employee of
the bank. He shall have power to make any
and all transfers of securities or other prop
erty of the bank which may be authorized to
be sold or transferred by the board or the
executive committee.
Section 5—F irst Vice President . In the
absence or disability of the president, his
powers shall be exercised and his duties dis
charged by the first vice president.
The duties of the first vice president shall
otherwise be such as may be prescribed from
time to time by the board, the executive com
mittee, or the president, subject to the provi
sions of law and the regulations of the Board
of Governors of the Federal Reserve System.
Section 6— Secretary . The secretary shall
keep the minutes of all meetings of the board,
of the executive committee, and of all com
mittees of the board unless some other person
is designated to keep any such minutes. He
11
shall have custody of the seal of the bank,
with power to impress same upon certificates
of stock of the bank and, by the authority of
the board or of the executive committee, to
other documents or instruments. The board
may, in the absence or disability of the sec
retary, or upon occasions when, in the discre
tion of the board, greater convenience can be
attained, authorize any other officer to im
press the seal of the bank upon certificates of
stock or other instruments or documents. The
secretary shall perform such other duties as
may be prescribed from time to time by the
board, the executive committee, or the
president.
Section 7— Cashier. In addition to the du
ties prescribed in Article 4 of these by-laws,
the cashier shall perform such duties as may
be prescribed from time to time by the board,
the executive committee, or the president.
Section 8—General Auditor. The general
auditor shall, subject to the direction of the
board or the chairman of the board, make pe
riodic audits or examinations of all accounts
and departments of the bank and of the
accounts of the Federal reserve agent. Once
a month, or oftener if required by the board,
12
the audit review committee, the chairman, or
the president, the general auditor shall trans
mit to the board a complete report of all such
audits and examinations, and any other mat
ters coming to his attention in the course of
his duties which should be brought to the
attention of the directors.
ARTICLE 4—MONEYS,
INVESTMENTS, AND SECURITIES
Under such rules and regulations as may be
adopted by a managing committee appointed
by the board, the cashier of the bank, together
with one other officer designated by the
board, shall be jointly responsible for all
moneys, investments, and securities while in
lower vault No. 1, main vault No. 3, and emer
gency vault No. 4 at the bank's main office;
and the president is authorized to designate
officer or officers who shall be responsible for
all moneys, investments, and securities out
side said vaults but in the possession of the
bank.
ARTICLE 5—CERTIFICATES OF STOCK
All certificates of stock shall be signed by
the president or a vice president, and the
secretary or cashier, or such other officers as
13
may be prescribed by the board; and such
certificates shall bear the corporate seal of
the bank.
ARTICLE 6—OFFICES
The offices of the bank at which its business
shall be conducted shall be the main office
thereof located at the corner of Superior Ave
nue and East Sixth Street, Cleveland, Ohio,
and two branch offices, one located at the cor
ner of Fourth and Race Streets, Cincinnati,
Ohio, and the other at the corner of Grant
Street and Ogle Way, Pittsburgh, Pennsyl
vania, and any other locations in these cities
which may be leased or acquired by this bank
to carry on its business.
ARTICLE 7—HOURS OF BUSINESS
Unless otherwise provided by resolution of
the board, the main office of the bank shall be
open for business from nine o’clock a.m. to
two-thirty o’clock p.m., eastern standard
time, on each week-day except Saturday, on
which day it shall be open for business from
nine o’clock a.m. to twelve o’clock noon, east
ern standard time, except that it shall not be
open for business on a day or such part of a
day established as a legal holiday or legal
half-holiday in the State of Ohio.
14
Unless otherwise provided by resolution of
the board, the Cincinnati branch shall be open
for business from nine o’clock a.m. to two
o’clock p.m., eastern standard time, on each
week-day except Saturday, on which day it
shall be open for business from nine o’clock
a.m. to twelve o’clock noon, eastern standard
time, except that it shall not be open for busi
ness on a day or such part of a day established
as a legal holiday or legal half-holiday in the
State of Ohio.
Unless otherwise provided by resolution of
the board, the Pittsburgh branch shall be open
for business from nine o’clock a.m. to three
o’clock p.m., eastern standard time, on each
week-day except Saturday, on which day it
shall be open for business from nine o’clock
a.m. to twelve o’clock noon, eastern standard
time, except that it shall not be open for busi
ness on a day or such part of a day established
as a legal holiday or legal half-holiday in the
Commonwealth of Pennsylvania.
In the event eastern daylight saving time is
made effective by federal, state, or municipal
authority in any city in which any office of
this bank is located, the concerned office or
offices of this bank shall adjust their hours
15
from eastern standard time to eastern day
light saving time during the periods such
advanced time is in effect.
ARTICLE 8—CORPORATE SEAL
The corporate seal shall consist of a cir
cular device, one and seven-eighths inches in
diameter, bearing a shield surmounted by an
eagle with wings extended; the shield shall
display at the top, twelve stars; at the base,
the symbol “4-D”; partially encircling the
shield, entwined wreaths; all surrounded by
a circle containing the words “Federal Re
serve Bank of Cleveland, Incorporated May
18, 1914.”
ARTICLE 9—AMENDMENTS
These by-laws may be amended at any reg
ular meeting of the board, or at any special
meeting thereof, by a majority vote of the
entire board; provided, however, that a copy
of such amendment or amendments shall have
been sent by mail to each member, addressed
to him at his place of business, or to him at
his residence, at least five (5) days prior to
any such meeting. Any member of the board
may, in writing, waive the requirement that
a copy of such amendment or amendments be
sent to him as aforesaid.
16
This document contains internal or confidential information and has
been removed.
Author(s): Federal Reserve Bank of Cleveland
Title: Federal Reserve Notes
Date: April 1924
Page Numbers:
This document is protected by copyright and has been removed.
Author(s):
Article Title: Men Who Set the Nation's Money Policy: A Description of the
Responsibilities and Operations of the Federal Open Market Committee
Journal Title: Business Week
Volume Number:
Date:
March 19, 1955
Page Numbers:
Issue Number:
This document contains internal or confidential information and has
been removed.
Author(s): Federal Reserve Bank of Cleveland
Title: Federal Reserve Notes
Date: December 1952
Page Numbers:
Pittsburgh Branch (Cleveland F.R. Bk.)
ASSIGNMENT OF DUTIES OF OFFICERS - PITTSBURGH BRANCH
EFFECTIVE DECEMBER 1 , 1953
J . W. Kos3 in . Vice President
The ch ief executive o f f ic e r w ill be d ir e c tly in charge of Bank and
Public R elation s, Business S t a t i s t i c s , and Vault Access.
A. G. F o ste r. Cashier
The ch ief operating o f fic e r , having executive ju risd ictio n over a l l
departments of the bank and w ill be d ir e c tly in charge of:
General F ile s - Libraiy
Loans, Discounts & Credits
Personnel
Vault Custody
J . A. Schmidt. A ssistan t Cashier
Accounting - Expense Accounting
Automatic Teletypew riter
Cash
Insurance
R. J . Steinbrink. A ssistan t Cashier
F is c a l Agency
Government Coupons
Purchase end Sale of S e cu ritie s
S e cu ritie s - Safekeeping
W. H. N olte. Assistant Cashier
Check C ollection
Noncash C ollection
J . R. P ric e . A ssistan t Cashier
Building Operations & Maintenance
General Service
Mail and Express
P ro tectio n
Purchasing
COMMITTEES - OFFICERS
1954-
PERSONNEL
A.
R.
C.
P.
J.
G.
J.
E.
H.
W.
F o ste r
Steinbrink
Houpt
Dorn
Kossin
(Chairman)
A.
R.
M.
J.
W.
G.
Schmidt
P rice
Trowbridge
Steinbrink
Kossin
F o ste r
(Chairman)
Kossin
F o ste r
P rice
Nolte
Schmidt
(Chairman)
BUDGET
J.
J.
G.
R.
J.
A.
(Ex O fficio )
(Ex O fficio )
BUILDING
J.
A.
J.
W.
J.
V.
G.
R.
H.
A.
OPERATIONS
A.
J.
V.
V.
G.
A*
H.
A.
F o ste r
Schmidt
Nolte
Bedel
(Chainnan)
JOB EVALUATION COMMITTEE
A.
R.
C.
P.
J.
V.
G.
J.
E.
H.
L.
A.
F o ste r
Steinbrink
Houpt
Dorn
Jauquet
Bedel
CIVIL DEFENSE COMMITTEE
A.
J.
R.
V.
J.
G.
A.
J.
H.
R.
F o ste r
Schmidt
Steinbrink
Nolte
P ric e
(Chairman)
FEDERAL RESERVE BAM OF CLEVELAND, PITTSBURGH BRANCH - LIBRARY
Grant S tre e t and Ogle Way, Pittsburgh^ Pennsylvania
Established^
Date 1943
Librarians Mrs. P h yllis Funk
Research Department - Vice President in charge: (Name)
No Research Department \
Librarian rep o rts to : (Name and t i t l e )
Mr. Arthur G. F o ste r, Cashier
S ta f f : Total - 2^r
Professional - 1
Serves: Banks, s t a f f , member banks, students, public.
MATERIALS
Volumes:
PERIODICALS
1956
Pamphlets:
No. Received:
2000
Added Annually:
No. Bound:
240 pamphlets
V e rtica l f i l e drawers;
20
253
19
Disposal o f o th ers: Clipped
4-drawer units
Special c o lle c tio n s : Hontfort Jones Memorial C ollection
No. Newspapers:
6
No. Bound or on
m icrofilm :
Library pu blications:
0
New book l i s t
DESCRIPTION OF LIBRARY (Subjects stressed , e t c .)
Banks and banking, H istory of banking, S t a t i s t i c s and Economics.
Does Library prepare an annual rep ort?
Is a summary published,
and^ i f so, where?
A s t a t i s t i c a l summary of inquiries
is included in the FKB-Cleveland - Bank Public Relations Annual Report. \
Name of supervisor of the Bank's correspondence files: Mrs. Phyllis Funk AOfficer to whom she reports (Name and title):
Mr. Arthur G. Foster, Cashier
Cleveland
General Information
19hS
Federal Reserve Notes - July
Federal Reserve Notes - September 19U6
#
*
#
*
Introductory Chapter
"H istory of Federal Reserve Bank of Cleveland"
Cincinnati Branch
(Cleveland F.R* Bk*)^
A p ril 6 , 1 9 5 4
Tor
F ro m :
O ffic e rs and D ep artm en t H eads
W . D. F u lto n , P r e s id e n t
S u b je ct: A ssig n m e n t of d u ties of
o f f ic e r s -C in c in n a ti b ra n c h
We have been ad v ised by R. G. Jo h n so n , v ic e p r e s id e n t, th at e ffe ctiv e
A p ril 2 , 1 9 5 4 , the o f f ic e r s of the C in cin n ati b ra n c h w e re a s s ig n e d th e follow ing
duties r
R . G. Jo h n so n , V ice P r e s id e n t
C hief e x e c u tiv e o f f ic e r . D ir e c tly in c h a rg e of bank and p u b lic
r e la tio n s , b u sin e ss s t a t i s t i c s , and vau lt a c c e s s .
P . J„ G e e r s , C a s h ie r
C h ief o p eratin g o f f ic e r .
vau lt c u s to d ie s .
D ir e c tly in c h a rg e of p e rs o n n e l and
C » H a r r e l l , A s s is ta n t C a s h ie r
A ccou n tin g
G e n e ra l A cco u n ts
M em b er and F e d e r a l A cco u n ts
T r a n s f e r of F u n d s and Coding
E x p e n se A ccou nting
F i s c a l A g en cy
G ov ern m en t Coupons
L o a n s , D iscou n ts and C re d its
P u r c h a s e and Sale of S e c u r itie s
S e c u r itie s - Safekeeping
C u r r e n c y V e rific a tio n and D e s tru c tio n
G . W . H u r s t, A s s is ta n t C a s h ie r
A u to m o b iles
D uplicating
Eq u ip m en t - R e p a irs
F ilin g and Old R e c o rd s
In fo rm a tio n
In s u ra n c e
L ib ra ry
Pages
P r o t e c ti o n
P r o v is io n of Space
P u r c h a s in g
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C a sh
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M ail and E x p r e s s
N o n cash C o lle c tio n
T e le ty p e
Date
To:
Research Department
Fed eral Reserve Bank of Cleveland
Cleveland 1 , Ohio
Please add my- name to your mailing l i s t fo r the items checked below:
(There i s no charge fo r th is se rv ice )
RKT.RAftiTfi
FINANCIAL (Fourth D is tr ic t)
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1.
Condition Report, Reporting Member Banks (Weekly)
_________
2.
Time Deposits (Monthly)
_________
3.
Bank Debits (Monthly)
_________
iw
Changes in Instalment C redit (Monthly)
(103 K)
(103 0 )
(103 N)
(103 T)
DEPARTMENT STORE TRADE (Fourth D i s t r i c t )
_________
Sales by C itie s (Weekly)
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Sales by C itie s (Monthly)
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f
o
A m e r i c a 's
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a
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u
A Print of FEDERAL RESERVE SYSTEM
tear off this coupon and send today to:
G EN TLEM EN : I would like to obtain a print of Federal Reserve System for
showing on (date)_______________
(First Choice)
_______________
_______________
(Second Choice)
(Third Choice)
Nam e of O rganization:_______________________________________________
A d dress_____________________________________________________ ___ ____
City_______________________________________ State
Approxim ate number of those in audience_________
Sign your name here_______ ________
The
F ilm
Story
* ? e d e n c i C
S
y
s
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^
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of the
&
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e
ITS H IS T O R Y * F U N C T I O N S * G O A L S
E n cy c lo pa ed ia B r ita n n ic a F ilms proudly
announces the release of a new motion picture
telling in a clear, dynamic manner the story
of the vital American institution of reserve
banking. In THE FEDERAL RESERVE SYS
TEM the average student and adult, no matter
what his financial training, will gain insight
into the sometimes maligned and often mis
understood plan of centralized banking.
ENDORSED
BANKERS
AND
BY
EDUCATORS
P R O D U C T IV IT Y :
THE FEDERAL RESERVE SYSTEM has been
endorsed by every leading banker who has
seen it and has been enthusiastically approved
by all the presidents of the Federal Reserve
Banks. Educators have acclaimed its usefulness
in the school curriculum.
WHAT
TH E
FILM
the three principal ways the reserve banking
system provides financial stability ; by increasing
or decreasing the rediscount rate on commercial
paper; changing the legal requirements on the
ratio of reserves to deposits in member banks
and by its own buying and selling of govern
ment securities on the open market. The film
finally demonstrates the flexibility of the re
serve system by showing how it has been
adapted to meet the challenge of depression
and other crises.
TELLS
The two reel film on the Federal Reserve System
explains how this banking plan was generated
in the money panics, such as that of 1907,
when there was no means of controlling fi
nancial hysteria. In dramatic reenactment, the
famous Princeton Conference of 1912 between
Carter Glass and President-elect Woodrow
Wilson provides an explanation and discussion
of the fundamental points of the Federal
Reserve act as it originally was proposed.
Through the use of dramatic incident and
animated drawings the film then emphasizes
A
KEY TO
PLEN TY-
C O M P A N I O N FILM
As a companion film to THE FEDERAL RE
SERVE SYSTEM leading bankers and edu
cators have recommended PRODUCTIVITY:
K EY TO PLENTY. This famous two reel,
EBF film explains how America has attained
the world’s highest standard of living because
we have learned to use and develop machines
which have in turn achieved our tremendous
capacity for production. The combination of
these two films caused one leading Federal
Reserve bank official to comment: "PR O
DUCTIVITY shows how important to our
standard of living is production. Every American
should know about this. But it is obvious that
a strong monetary system is imperative to make
this productivity. We are going to use both
films together because their message goes hand
in hand. I have never seen anything that makes
such a powerful message.”
E N C Y C L O P A E D IA B R I T A N N I C A FILM S I N C .
W I L M E T T E ,
I L L I N O I S
'r & tU iU c t
S < u t 6 i* t $ ^ .e a d & u
Thomas B. M cCabe, chairman,
Board of Governors of the
Federal Reserve System: "The
Presidents of the Federal Re
serve Banks saw the film the
other day and they were, with
out exception,
enthusiastic
about it."
R. R. Gilbert, president of the
Federal Reserve Bankof Dallas:
EBFilms should be thanked for
its "contribution toward better
public understanding of bank
ing and, consequently, better
bank public relations . . . A
very fine job, both in the film
and in the narrative, in devel
oping in an interesting manner
the basic purposes and objec
tives of the Federal Reserve
System.”
at
Jed exa l
FED ERAL RESERVE BANK OF CLEVELAND
Cleveland - Cincinnati - Pittsburgh
Fourth Federal Reserve District includes Ohio#
western Pennsylvania, eastern Kentucky, and the
panhandle of West Virginia. This area is served
by the Federal Reserve Bank of Cleveland and its
branches at Cincinnati, Ohio, and Pittsburgh,
Pennsylvania. The Fourth District is one of the
most vital areas of the United States. The fifteen
million people living in this district account for
over ten per cent of the nation's business.
1 4 /e l c o m e to- t y e d e s ia l d e ^ e k a e
B a n k
&h C le v e la n d
It is a real pleasure to have you as our guest. Our
aim is to make this an enjoyable occasion for you as
well as for us, one we will all remember with pleasure
and profit.
Our bank tours are designed to afford you an op
portunity to see departments of the bank in operation,
and to become better acquainted with the functions
and aims of the Federal Reserve System. W e shall
make every effort to accomplish these objectives to
your complete satisfaction.
If at any time we can be of service to you or your
associates we hope you will call or write to us.
President
President Wilbur D. Fulton (second from left) and Chairman
John C. Virden (fourth from left, front row) welcome guests
to “A Day at Federal’*
Guests assemble— Introductions
R ecep tio n R oom — E ighth Floor
Movie "A Day at Federal Reserve
Bank of Cleveland”
Tour of operating departments
Assemble — Member Bankers' Room
Discussion of bank operations
In this new production line for packaged coin, machines auto
matically wrap coin at the rate of 40,000 rolls (about eight
tons) daily.
S te fu z t& n e s titd . V m i e d
Vault, Coin Division, Mail and
Security Court
Cash, Securities, Non-Cash Collection, and
Fiscal Agency—Treasury Issues
Ground Floor
1st floor
Check Collection
3rd floor
Accounting
5th floor
Fiscal Agency—Savings Bonds
6th floor
Executive Floor
Library, Board Room, and Directors Room
8th floor
Recreation Floor
Employees' Cafeteria and Recreation Rooms
10th floor
Federal R e s e r v e B uild in g — W ashington, D . C.
"7he fl&afiA o( Qaae'ino'U a n d
fyede/ial ReAeAve H a n k of C le v e la n d
The Board of Governors of the Federal Reserve System consists of seven
members appointed by the President and confirmed by the Senate of the
United States. Being an independent establishment, the Board is not a part
of the United States Treasury or any other Government department and it
reports directly to Congress. The funds by which it is supported are derived
not from Federal appropriations but from assessments levied on the Reserve
banks.
The chart on the opposite page explains the organization and responsi
bilities of the different units of the Federal Reserve System.
Some 6 5 0 member banks, representing approximately 8 5 % of the bank
ing resources in the Fourth District, own the 5(30,000 shares of $ 1 0 0 par
value stock of this bank, 5 0 % paid in, on which they receive 6 % interest.
O n dissolution or liquidation, any surplus remaining after the payment
of all debts, dividend requirements, and par value of stock, shall be paid
to and become the property of the United States.
Six of the nine directors (Class A and B) at the main office are elected by
member banks while three directors (Class C) are appointed by the Board
of Governors. At the branches, four of the seven directors are appointed
by the main office directors and three directors are appointed by the Board
of Governors.
Federal Reserve Bank of Cleveland has approximately 1,700 employees
at its main office and branches, whose efforts are devoted to rendering
service to the banks in the Fourth District.
A dual control system helps to protect the negotiable securities
held by the bank for safekeeping.
Hundreds of millions of dollars of bank credit is transferred
about the country daily over the automatic teletypewriter com
munications system installed by the Federal Reserve System
in July, 1953.
Tours through the main office and branch buildings are in
creasingly attractive to bankers, businessmen, and university
and high school teachers and students. In 1953 more than
4,300 men and women were taken on conducted tours of the
three offices.
The bank maintains a large library of banking information
available to anyone. On its shelves are more than 8,000 books
dealing with banking and finance, industry, trade and agri
culture, plus many thousands of catalogued pamphlets.
Cash D epartm ent
Cash Departm ent
Punching and cutting are first
O perator watches for coun
steps in the destruction of
terfeits as she sorts currency
unfit currency
into counting machine
Check Collection Dept.
Fiscal Agency Dept.
Proof machines help to handle
Transfer posting machine ex p e
an average of 100,000 checks
dites F iscal Agency accounting
daily
Vault Door—Main Office
Vault door weighs 100 tons.
The
door assem bly, together with crane
hinge and fram e, weighs 300 tons,
which m akes it the largest vault
assem bly in the w orld.
S & u u c & L P eto fjO Ju tted f o b
M em b e ti B
Q e d e /i a l (l & ie b o e . & a * t k
om
U
a.
fuf>
& f G le o e la t u i
The original purposes of the Federal Reserve, as conceived by its founders,
were to give the country an elastic currency, to provide facilities for dis
counting commercial paper, and to improve the supervision of banking.
In accomplishing the original objectives and statutory responsibilities,
these specific services are rendered to the member banks and to the public
in the Fourth District:
1. Credits, Loans and Investments
This bank makes advances secured by eligible paper or obliga
tions of the United States; discounts eligible commercial, agricul
tural or industrial paper; makes advances on other security under
Section 10 (B) of the Federal Reserve Act; and makes commitments
to discount for or purchase from financing institutions loans made
for the purpose of providing working capital, under Section 13-B
of the Federal Reserve Act.
2 . Currency and Coin
This bank is the reservoir for currency and coin for the banks
in the 4th District. Shipments to and from member banks are made
at the expense of this bank.
3 . Collection of Cash Items
This bank accepts from member and non-member clearing banks
of this district, for collection and credit, cash letters containing
checks and other cash items payable at par; also checks drawn on
the Treasurer of the United States payable in Washington, D. C.,
or through other Federal Reserve banks.
4 . Collection of Noncash Items
This bank receives from its member banks, for collection, the
following types of items:
Notes, acceptances, drafts, drafts with securities attached, bill
of lading drafts, bonds, coupons, municipal warrants, etc.
5. Transfer of Funds
This bank makes transfers by wire of balances in the amount of
$ 1 ,0 0 0 or multiples thereof, without cost, to member banks located
in other Federal Reserve Districts; transfers of funds are made by
mail between member banks for any purpose and for any amount.
6. Purchase and Sale of Securities
This bank makes purchases and sales of Government securities
in the open market, without charge, at the request and for the ac
count of member banks.
7. Safekeeping of Securities
This bank provides safekeeping service to member banks for all
securities (except stocks) owned by them; this service facilitates
the pledging of collateral by member banks which may have oc
casion to borrow from this bank. This bank detaches and collects
maturing coupons, collects maturing and called securities, and
exchanges temporary securities for permanents.
8 . Fiscal Agency Operations
As fiscal agent for the United States in the Fourth District, this
bank serves the banks and the public in United States Treasury
and savings bond transactions, and collection of federal taxes.
9 . B a n k Examinations
This bank makes examinations of State member banks at least
once each year, without charge, usually in conjunction with State
banking departments.
10. Research Department
This bank provides information on economic conditions and de
velopments in the Fourth District and in the country; summaries of
bank deposits, loans and assets are made periodically. The Monthly
Business Review, Weekly Business Trends and other releases are
issued periodically.
11. Bank and Public Relations
Meetings are held throughout the district for bankers and others.
Speakers are furnished to various business and banking groups.
A sound movie " A Day at Federal Reserve Bank of Cleveland"
and other movies relating to banking are available to groups for
showing.
12. Miscellaneous Services
Other miscellaneous services are rendered to banks and to the
general public, e. g., use of Bank Library and aid in detecting
counterfeit bills.
Economists collect business statistics and analyze business trends. Top
left below: Broadcasting the weekly 4Business T r e n d s T o p right: The
bank's Monthly Business Review is widely read. Lower left: Economists
maintain charts showing trends in various fields of commerce and industry,
Lower right: Bank economists are in frequent demand as speakers on a
wide range of subjects.
^ b V ie c t o r t ,
MAIN OFFICE
J O H N C. VIRDEN ( Chairman )
Chairman of the Board, John C . Virden Com pany
Cleveland, Ohio
L E O L. R U M M E L L (Deputy Chairman)
Dean, College of Agriculture
The Ohio State University
Columbus, Ohio
J O H N D. BAINER, President
The Merchants National Bank and Trust Company of Meadville
Meadville, Pennsylvania
JO E L M . B O W L B Y , Chairman of the Board
The Eagle-Picher Company
Cincinnati, Ohio
E D W A R D C . D O L L , President
Lovell Manufacturing Company
Erie, Pennsylvania
E D IS O N H O B STE TTE R , President
Pomeroy National Bank
Pomeroy, Ohio
J. BRENNER R O O T , President
The Harter Bank Sl Trust Company
Canton, Ohio
SIDNEY A . S W E N S R U D , President
Gulf Oil Corporation
Pittsburgh, Penna.
A L E X A N D E R E. W A L K E R , Chairman and President
The National Supply Company
Pittsburgh, Pennsylvania
O U jiceto L
MAIN OFFICE
W IL B U R D. F U L T O N ............................................................... President
D O N A L D S. T H O M P S O N ................................... First Vice President
R O G E R R. C L O U S E ............................. Vice President and Secretary
MERLE H O S T E T L E R ........................................... Director of Research
R IC H A R D G . I O H N S O N .................................................Vice President
J O H N W . K O S S I N ........................................................... vice President
ALFRED H . L A N I N G ................................ Vice President and Cashier
M A R T IN M O R R I S O N ........................................................ Vice President
H . E. J. S M IT H ................................................................. Vice President
P A U L C. STETZELB ERG ER.......................................... . .V ic e President
PHILLIP B. D I D H A M ..................................... Assistant Vice President
G E O R G E H . E M D E ....................................... Assistant Vice President
JA M ES R. L O W E ........................................... Assistant Vice President
JO S E P H M . M IL L E R ...................................... Assistant Vice President
C H A R L E S J. B O L T H O U S E ........................................ Cashier
C H A R L E S E. C R A W F O R D ......................................... Assistant Cashier
E L W O O D V. D E N T O N .............................................. Assistant Cashier
ELM ER F. FR IC E K ........................................................Ass/sfan* Cashier
G E O R G E R. R O S S ..................................................... Assistant Cashier
H U G H M. B O Y D ........................................................... Chief Examiner
C A R L F. E H N I N G E R ..................................................... General Auditor
H A R M E N B. F L IN K ER S........................................... Assistant Secretary
Pno^edAio+tal
A D D I S O N T. C U T L E R ............................................... Senior Economist
FRED O . K IE L ............................................................. Senior Economist
C L A U D E I. H U M M E L ....................................... Agricultural Specialist
fyteld. Rop/ieie*ttatio&
D O N A L D C. R O B IN S O N
Cincinnati Branch Building
S b iste c to tid .—
C U t c U u t a ii B n & M c U
DR. J O H N C. B A K E R (C h a ir m a n )
President, Ohio University
Athens, Ohio
HENR Y C . BESUDEN, Fa rm er
Winchester, Kentucky
L. M . C A M P B E L L , President
Second National Bank
Ashland, Kentucky
E. S. D A B N E Y , President
Security Trust Company
Lexington, Kentucky
FRED A. D O W D , President
Atlas National Bank
Cincinnati, Ohio
JO S E P H B. H A L L , President
Kroger Company
Cincinnati, Ohio
A N T H O N Y H A S W E L L , President
Dayton Malleable Iron Company
Dayton, Ohio
R IC H A R D G . J O H N S O N , V7ce President
PHILIP J. GEERS, Cashier
J O H N B IE R M A N N JR.,
Assistant Cashier
C L Y D E HARRELL,
Assistant Cashier
G E O R G E W . H U RST, Assistant Cashier
P ittsb u rg h B ra n ch B u ildin g
&H
o h c
U
C L IFFO R D F. H O O D ( Chairman )
President, United States Steel Corporation
Pittsburgh, Pennsylvania
M O N T F O R T JONES, Professor of Finance
The University of Pittsburgh
Pittsburgh, Pennsylvania
P A U L M A L O N E , President
Second National Bank of Uniontown
Uniontown, Pennsylvania
W I L L I A M B. M cFALL, President
Commonwealth Trust Company of Pittsburgh
Pittsburgh, Pennsylvania
D O U G L A S M . M O O R H E A D , Farmer
North East, Pennsylvania
ALBERT L. R A S M U S S E N , President
The Warren National Bank
Warren, Pennsylvania
H E N R Y A . R O EM ER , JR., President
Sharon Steel Corporation
Sharon, Pennsylvania
O JIic & u
J O H N W . K O S S IN , Vice President
A R T H U R G . FOSTER, Cashier
W.
H U N TER N O L T E ,
Assistant Cashier
J O H N R. PRICE,
Assistant Cashier
J O H N A . SC H M ID T ,
Assistant Cashier
R O Y I. STEINBRINK,
Assistant Cashier
F ederal
R eserv e
B a n k
of
For
Research Department
Release A. M. Newspapers, January 1 2 , 1955
C le v e la n d
Date January 1 0 , 19$$
Condition of Weekly Reporting Member Banks in Cleveland, Cincinnati, Pittsburgh, Columbus, Dayton and Toledo
T o tal loans and investments a t 17 weekly rep o rtin g banks declined by $61 m illion
during the week ended January 5* The decrease was c h ie fly the r e s u l t o f the liq u id a
tio n of sh ort-term government s e c u r i t i e s .
Holdings of U. S. Government s e c u ritie s declined 463 m illion from the previous week
to a le v e l $157 m illion above the year-ago mark. P o rtfo lio s of Treasury b i l l s were
$36 m illio n below the preceding week, while holdings of c e r t i f i c a t e s of indebtedness
were reduced by #29 m illio n . Treasury n o tes, however, in creased s l i g h tly .
Real e s ta te loans increased by #2 m illio n , and se c u rity loans to others than bro
kers ro se by $6 m illio n . Commercial, in d u s tr ia l, and a g r ic u ltu r a l loans declined
$3 m illio n , the f i r s t reduction in s ix weeks, while consumer and a l l other loans posted
a sim ilar d ecrease. T otal loans adjusted were $2,U80 m illio n , or an in cre a se of 45 m il
lio n from the previous week.
T o tal deposits completed the week a t $ 6 ,5 3 5 m illio n , which was $210 m illio n above
the year-ago mark. Time deposits in creased during the week by $7 m illio n , and interbank
deposits ro se $27 m illio n . These gains were la rg e ly o f f s e t by d eclin es in adjusted de
mand deposits and U. S. Government d ep o sits.
Changes Prom
Week Ago
Year A|
January 5 , 1955
ASSETS
(in m illions of d o lla rs )
- 18U
Commercial, In d u stria l & A g ricu ltu ra l Loans
$ 1 ,2 0 9
3
Loans f o r Purchasing or Carrying S e cu ritie s
■012 u
To Brokers and Dealers
+ 37
+
6
78
To Others
+
5
2
+
Real E s ta te Loans
+ 97
591
527
Consumer and A ll Other Loans
3
+ 13
+
2,U80
..............
- 30
TOTAL LOANS ADJUSTED*.......................................
- 36
70
- U9
Treasury B i l l s
181
- 338
C e r tif ic a te s o f Indebtedness
29
2
761
+
+ 86
Treasury Notes
-0- ,
1 ,8 2 2
+ 1*58
Treasury Bonds
+ 106
63U
3
Other S e c u ritie s
+ 263
3,U68 .............. TOTAL INVESTMENTS................................................
2
Due from Banks
5
157
12
Vault Cash
7
93
+ 12
- 52
Reserves with Fed eral Reserve Bank
913
1 ,1 6 3 .............. 5 ............ - 61
TOTAL CASH RESOURCES.........................................
+ 19
U8
+ 38
Loans to Banks
2
U
Other Assets
79
7 ,2 3 8 .............. - U9 ............ + 206
TOTAL ASSETS...........................................................
LIABILITIES
+ 127
Adjusted Demand Deposits-sB*
U, 0U5
9
1 ,7 2 8
+
7
+ 9h
Time Deposits Except Government
23
167
U. S . Government Deposits
+
3
+ 27
595
- Ik
Demand Balances Due to Banks
2 ............ , + 210
TOTAL DEPOSITS.......................................................
6 ,5 3 5 .............. +
- 50
18
- U8
Borrowings
1
Other L i a b i l i t i e s
85
+ 17
-0 600
+ 27
C a p ital Accounts
— li9
^. + 206
TOTAL LIABILITIES AND CAPITAL.....................
¥ E xclu siv e of loans to banks and a f te r deduction of $U9 m illio n v a lu atio n r e s e rv e s .
•SHfr Demand Deposits other than U. S . Government and Interbank, le ss $388 m illio n cash
item s in process o f c o lle c tio n .
F ed eral
R e serv e
Research
B a n k
of
C le v e la n d
Department
Fo r
Release P*M* Newspapers, January 1 0 , 1955
n n .*g Ja n »
CLEVELAND BUSINESS ACTIVITY
Annual Summary — 195U
% Change
195U
1953
1953-5U
Perm its to B uild, Estim ated C ost:
C ity o f Cleveland - T o t a l .. . .d o lla r s
R esid en tia l (new & a l t , ) . . .
M
N onresidential (new & a l t . )
tt
Suburban - T o t a l . . . .....................
M
Cuyahoga County - T o t a l . . . . . .
H
- 28%
- 16
- 3U
+ 3
- 8
New Passenger Car S a l e s * .. . . . . .number
Used Passenger Car S a le s # ...........
n
New Truck Sales-*....................... ..
"
Used Truck S a l e s * . . . . ...................
"
- k
- 1
- 7
- 10
E l e c t r i c O utput.. . . . . . . . . . .m illio n kwh.
-
$ 6 2 , 2 5 5 ,0 0 0
$ 23,61*3,000
$ 3 8 ,6 1 2 ,0 0 0
$ l6 3 ,2 ii5 ,0 0 0 p
$ 2 2 5 ,5 0 0 ,0 0 0 p
$ 86,80U ,000
t 28,2i|7,000
1 5 8 ,5 5 7 ,0 0 0
$ 1 5 8 , 5 0 0 ,0 0 0
& 2U5,300,000
7 3 ,7 1 3
81,U02
5 ,5 2 1
3 ,6 5 0
76,78U
8 2 ,5 9 1
5 ,9 0 9
U,o55
3
6 ,0 5 0
6 ,2 6 3
S te e l Ingot P ro d u ctio n .. . . . . e s t . tons
- 2U
U,6 2 5 ,0 0 0
6 ,1 2 5 ,0 0 0
Department Store S a l e s . . . .d o lla r volume
-
n .a .
n .a .
Unemployment Compensation:
Continued C laim s...........avg. weekly number
+2h3
T ra n sit System Revenue.. . . . . . .d o lla r s
-
8
R e ta il Display Ad L in e s .. . . . . .number
+
3
C arloadings:
Inbound...................................... . . .number
Outbound...................................... ..
"
- 2k
- 27
P relim in ary.
*
By d e a le rs ,
n .a .
1 8 ,5 0 0
5,Uoo
& 2 6 ,9 0 0 ,OOOp $ 2 9 ,1 1 8 ,0 0 0
U i,6 5 7 ,0 0 0
o o
OO
OO
n **
O CO
cn CJ
p
6
1*3,328,000
U 02,000
38 3 ,5 0 0
Not a v a ila b le .
Sou rces:
B uilders Exchange; Cuyahoga County Clerk o f C ourts; Cleveland E l e c t r i c
Illum inating Company; C ity o f Cleveland, L igh t D ivision ; C ity o f C leveland,
Building Department; Cleveland Chamber o f Commerce; Magazine STEEL; The
Cleveland P la in D ealer; Cleveland T ra n sit System; F ed eral Reserve Bank o f
C leveland; Ohio Bureau of Unemployment Compensation.
F ederal
F or
Release
R e serv e
Research
B a n k
of
C le v e la n d
Department
Newspapers, January 10, 1955
Jan« 7, 1955
ANNUAL SUM-1AKT OF CLEVELAND BUSINESS ACTIVITY
How g re a t was th e 1951* business downturn in the Cleveland area? According to
most barometers of a c t i v i t y , including bu ild ing, s t e e l production, and new automo
b ile s a l e s , the year r a t e s as ’’th ir d b e s t”. E l e c t r i c power output, however, was
p r a c t i c a l l y ti e d f o r a ’’second b e st" c l a s s i f i c a t i o n , while newspaper d isp lay ad
v e r tis in g s e t a new re co rd . Without e xcep tio n , however, a l l business in d ic a to rs
were p ointing to improvement at. the tu rn o f the y e a r.
BUILDING
PERMITS
' (Cleveland)
T otal building perm it v a lu a tio n w ithin th e C ity o f Cleveland dipped
to $62 m illio n in 195U, o ff 2B% from th e re co rd volume of the p re
vious y e a r. However, the previous y e a r , 1953* was quite exce p tio n al
and 195U building volume was about on a par w ith th e 1950-1952 average.
R esid en tial co n stru ctio n , amounting to $21; m illio n , experienced a
sm aller cutback than did n o n resid en tial b u ild in g , showing only a 16%
declin e a s a g a in st a 3h% drop in n o n resid en tial co n stru c tio n .
(Suburban)
I t was a d if f e re n t s to r y , however, in Cuyahoga County outside Cleve
land® Suburban areas of th e county, with an estim ated $ l6 3 -m illio n
building perm it aggregate,* experienced a 3$ gain in t o t a l co n stru c
t io n . R esid en tial building paced the uptrend w ith an estim ated r i s e
o f 18$ from the year b e fo re .
(Cuyahoga
County)
The expanded co n stru ctio n a c t i v i t y in suburban d i s t r i c t s app aren tly
held the t o t a l y e a r -to -y e a r building d e clin e in Cuyahoga County to
8 $ , as p relim in ary d ata in d ic a te a countywide t o t a l o f about $225
m illio n f o r 195k*
STEEL
S te e l in g o t tonnage produced in the Cleveland-Lorain d i s t r i c t amounted
to approxim ately E ,625*000 to n s. This was about one-fourth l e s s than
re co rd 1953 production, but was roughly the same a s in o th er r e c e n t
y e a rs s t a r t i n g w ith 1 9 5 0 . The downturn which began toward th e end o f
1953 reached i t s lowest p o in t l a s t August. Subsequent reco v ery has
been rapid and steady but a t th e end o f th e y e a r, weekly output was
s t i l l s lig h tly below p r a c t i c a l l y a l l weeks o f th e previous y e a r .
ELECTRIC
POWER
Among the business in d ic a to rs displaying more moderate d e clin e s from
y ear-ago performance was output o f e l e c t r i c power. Energy produced
during 195U amounted to 6 ,0 5 0 m illio n kwh., or a y e a r -to -y e a r reduc
tio n of 3>%o The d eclin e was somewhat la r g e r e a r l i e r in 195k, p a r t i
cu la r ly in th e f i r s t h a l f , but t h i s was p a r tly o f f s e t by an average
y e a r -to -y e a r r i s e of n e a rly 3$ in th e f i n a l quarter,, An a ll-tim e
weekly re co rd was estab lish ed in December. The continued growth in
th e use of e l e c t r i c power in homes and in creased use in such new
f ie ld s as a ir-co n d itio n in g were im portant f a c to r s in o f f s e ttin g
the d eclin e in in d u s tr ia l use o f e l e c t r i c power.
-2 DEPARTMENT
STORES
Department s to re s fin ish ed the y e a r w ith an aggregate s a le s volume
6% le s s than th e t o t a l f o r the previous y e a r . However, the y e a r -t o y e a r d eclin e was g re a te r in the f i r s t s i x months than towards the
end of 19$b*
R e ta il disp lay a d v ertisin g in d a ily newspapers in creased t o liU,657*000
NEWSPAPER
ADVERTISING lin e s to show a 3% gain over the preceding year and s e t a new re co rd
f o r t o t a l annual lin e a g e .
CARLOADINGS
So much co a l and iro n ore i s moved by r a i l in and out o f Cleveland
th a t railw ay carloading fig u re s la rg e ly r e f l e c t a c t i v i t y a t s t e e l
m ills in Cleveland and a lso a t inland p o in ts . Consequently the de
c lin e in s te e l output and iro n ore production i s c lo s e ly matched by
the 2h% drop in inbound carloadings (to 30U,000 c a r s ) and th e 27%
d eclin e in outbound fre ig h t (to 2 8 1 ,0 0 0 c a r s ) .
MOTOR
VEHICLES
N early 7h,000 new passenger c a r s a le s were rep o rted in Cuyahoga
County, malting 19 5U the th ir d b est auto s a le s y e a r in l o c a l h is to r y .
The y e a r-to -y e a r d eclin e was only k% d esp ite a f a c to r y production
drop o f about 1 0$, with the d iffe re n ce p a r t l y accounted f o r by a
siz e a b le carryo v er of inventory from 1953 to 195U.
The widespread in tro d u ctio n o f new models during th e autumn months
represented a re tu rn to a prewar manufacturing p r a c tic e designed to
provide a s a le s spark fo r an otherw ise d u ll e n d -o f-th e -y e a r s e llin g
period,, However, November new c a r sa le s were about 1$% below a y e a r
ago and no pickup became apparent u n t i l December0
In the f in a l week o f December, 3,18U new c a r s were t i t l e d . This
somewhat s t a r t l i n g fig u re was more than tw ice the previous w eek's
t o t a l and n early four tim es th e y ear-ag o l e v e l . Moreover, th is
volume was 35% la r g e r than the weekly reco rd e sta b lish e d in August
1 9 5 0 . I t i s rep orted th a t an unusually la r g e number o f ca rs were
r e g is te re d by d e a le rs in c e r ta in l i n e s , a development presumably
r e la te d t o the s a le s ra c e between leading m anufacturers.
UNEMPLOY
MENT
According to t o t a l claim s f i l e d f o r unemployment compensation, the
number o f unemployed persons ro se ra p id ly in the f i r s t few months
of 195U and by y ear end had receded only moderately from th e h igh est
le v e l reached. From a low point o f l e s s than 5 ,0 0 0 in the preceding
y e a r, claim s had r is e n to 1 6 ,0 0 0 by the beginning of 195U. A peak
o f 2U,000 was reached in A p ril. A v ery g en tle d eclin e has been
apparent ever s in c e , excep t f o r a b r ie f re v e rs a l l a t e l a s t summer
which was r e la te d to auto model changeovers. The e n d -o f-th e -y e a r
count was about 2 0 ,0 0 0 .
Federal
DEPARTMENT
R e serv e
B a n k
Research
of
C le v e la n d
Departmen t
STORE TRADE
D a t e January 6, 1955
F o r H o l p a s p A. M. Newspapers, January 7
SALES AND STOCKS BY DEPARTI-ENTS
For November3 195k
F in a l rep o rts f o r November from Fourth D i s t r i c t department s to r e s show th a t
sa le s in a l l major departments were below year-ago l e v e l s , although by more
moderate amounts than was th e case e a r l i e r in the y e a r.
No y e a r-to -y e a r gains
were posted among th e departments l i s t e d in the accompanying ta b le , although sa le s
were a t l e a s t equal t o th e y ear-ago volume f o r the women’ s and m isses1 apparel
group and fo r th e men’ s and boys’ wear group.
The l a r g e s t y e a r-to -y e a r lo sses
were in th e homefurnishings departments, averaging 6$ fo r the group.
Sales fo r a l l departments combined were only 2$ below a year ago.
Nearly a l l of the l i s t e d departments experienced sa le s in creases from October
le v e ls .
(See second column of ta b le )
The g r e a te s t gains were posted by men’ s
furnishings and h a ts , up 70$, men's and boys1 wear, up 3 6 $ , and women’ s and m isses1
a cce sso rie s with a 17$ in c re a s e .
the month.
Radios, phonographs, and TV sa le s ro se
16% during
Major appliance s a l e s , on the oth er hand, dropped 20$ from th e
previous month's l e v e l s .
The all-departm ent t o t a l ro se 1 6 $ .
The mont'n-to-month in cre a se in s a le s was la rg e enough to be apparent a f t e r
adjustment f o r seaso n al v a ria tio n and trading-days in most of the l i s t e d d ep art
ments.
Adjusted s a le s f o r p iece goods and household t e x t i l e s in creased 11$ from
O ctober, and s a le s of women’ s and m isses» d resses scored an 8$ in c re a s e .
Only
th ree of th e l i s t e d departments f a ile d t o sco re any advance over th e previous
month on a se a so n a lly adjusted b a s is .
INVENTORIES a t th e end of the month were lower than a y e a r ago in a l l the
l i s t e d departm ents, by percentages ranging from 5$ to 9%. For a l l departments
combined, in v en to ries were 6$ below a year ago.
On a sea so n a lly adjusted b a s is , stocks in the apparel groups of departments
ro se from th e le v e ls o f the preceding month, while homefurnishings in v en to ries
d eclin ed . T o ta l sto ck s held approxim ately stead y on a se a so n a lly adjusted b a s is .
F ederal
R e se r v e
DEPARTMENT
STORE TRADE
B a n k
Research
of
C le v e la n d
Department
F o r Release A. M. -Hawspapar-SJ. amirjry 7_____
Date ■Tam-mT’y 6 ,^ 9 5 5
SALES A N D STOCKS BY DEP AR TM EN TS
For_______Novembey.
(2)
SALES
DEPARTMENTAL GROUP
1 9 5 3 ...
SEASONALLY ADJUSTED INDEX
STOCKS (J)
i CHANGE FROM
i'lov.
O c t.
or Department (1)
19^b___________
l< -5 k
( 1 9 4 7 -4 9 = 100)
STOCKS
i CHANGE FROM
H ov .
O c t.
S e p t.
O c t.
LI o v .
O c t.
ov.
1953
195k
l« J ii
l? 5 k
1 9 5 k .
195k
T 9 5 ii_
8 ii
91
108
. 1 0 6 __
111
115
116
112
118
SALES
«>
P IE C E GOODS ft HOUSEHOLD T EX T IL ES
-
2
+11
-
5
-0 -
WOMEN’ S & M ISSES*
ACCESSORIES
-
2
± 11.
-
5
+
WOMEN'S & M ISSES*
APPAREL
-0 -
+
3
-
S'
.= 0 - .
- k
- b
-
8
-1 3
69
80
83
101
107
-
-
2
-
7
.+ . 3
101
99
107
98
102
-0 -
+36
-
6
+
1
95
109
108
120
122
-0 -
+
6
-
5
-
5
83
98
95
127
128
-
1
+70
-
6
+
9
100
113
115
117
12k
-
6
+11
-
7
-0 -
86
9k
100
116
llii
-
3
+
1
-
8
-
1
9k
105
110
122
120
9
-
2.
68
72.
76
9k
9k
lomen's
&
Misses *Coats
&
Suits
Women's & Misses* Dresses
M EN'S & BOYS* WfEAR
Men's Clothing
Men*s Furnishings
fit
Hats
HOME FURNISHINGS
Furni tare and Bedding
102
...9 8
n o
.. . 1 0 2 . ...... 1 0 7
Domestic Floor Coverings
-1 0
-0 -
-
Major Household App1iances
-
b
-2 0
_ o
-
2
62
____ BIl
72
Radios* Phonographs , & T.V.Sets
-1 7
+16
-
8
+
7
10b
IQLl
109
IP 5
130
_ ± 1 7
-
7
+ 2
109
in)t
111
107
J 1 .1 ?
+16
-
6
+
101
106
109
llo
US
BASEMENT STORE
TOTAL - ALL DEPARTMENTS ( 5 )
(1)
1
3
82_
- 1
-
2
...
2
...B JL .
...
80
THE IT A LIC IZED LISTINGS ARE SPEC IFIC DEPARTM EN TS WHICH ARE M ER ELY ILLU ST R A TIVE OF THE DEPARTM EN TAL GROUPS OF WHICH THFY ARE SUBDIVISIONS.
THE DEPARTMENTAL GROUPS, SHOWN IN C A PIT A L L ET TERS. ACCOUNT FOR A PPRO XIM ATELY BO TO 85 PER C EN T OF TOTAL STORE SALES
(2> UNADJUSTED FOR NUMBER OF TRADING DAYS.
{3)
END OF MONTH.
(4)
ADJUSTED FOR NUMBER OF TRADING DAYS
(5 )
Includes d a ta from some s to r e s which do not re p o rt on s p e c i f i c departm ents.
21 e
Digitized forRS
FRASER
F ederal
R e serv e
B a n k
of
C le v e la n d
Research Department
Fo r
R elease
P.M. Newspapers, J anuary H, 1955
D a t e January 3, 1955
CHANGES IN CONSUMER INSTALMENT CREDIT - NOVEMBER 195k
25 Fourth D i s t r i c t Member Banks 1 /
New Loans Made
Compared With
Mo. Ago
Year Ago
+ 7$
-
1$
+
1
7
- 25
+ 2
- 5
- 2U
- h
+ 10
+ 8
+ 30
+ 13
+ h
[type of C redit
T otal consumer instalm ent c r e d it
Automobile paper:
Purchased
D ire ct
Other consumer goods paper:
Purchased
D irect
Repair and modernization loans
Personal instalm ent cash loans
Outstanding a t End of Mo.
Compared With
Mo. Ago
Year Ago
- 1$
-
- 3
- 2
-
+
+
-
8
+ 5
+ 11
1
1
2
*
1
-
2$
1U
6
* Less than 0 .5 $
New Loans Made
T o tal new consumer instalm ent loans granted by 25 re p o rtin g banks during November
declined 1$ from the preceding month. When account i s taken o f the number of trading
days, however, new extensions o f c r e d it showed a s l ig h t g ain . Compared to a year ago,
new consumer loans were up by 7$.
The volume o f new d e a le r-o rig in a te d automobile paper was 1$ below October and 25$
below the year-ago mark. D ire ct automobile loans extended, however, r e g is te re d a 7$
gain over the month-ago volume, and were 2$ g re a te r than the year-ago p eriod .
New extensions o f d ir e c t loans on other consumer goods were 2U$ le s s than the
month-ago f ig u re . Purchases o f d e a le r-o rig in a te d paper fo r other consumer goods were
reduced during the month by 5$> but were 10$ above the year-ago mark.
New personal instalm ent cash loans were b% above October and 13$ above a year ago.
Consumer Instalm ent C red it Outstanding
Total consumer instalm ent c r e d it outstanding a t re p o rtin g banks posted a 1$ de
c lin e from the preceding month and was 2$ le s s than the November 1953 mark.
Purchased automobile paper outstanding decreased 3$ from a month ago, while d ir e c t
automobile paper outstanding declined 2 $ . Month-to-month reductions have been r e g is te re d
in these two kinds o f auto c r e d it outstanding sin ce l a s t summer.
D ire ct loans outstanding on other consumer goods clo sed the month 2$ below the end
o f O ctober, while other consumer goods paper purchased ro se 1$ during the re p o rtin g
p eriod .
Personal instalm ent loans outstanding declined 1$ during the month, while th ere
was v ir tu a lly no change in outstandings fo r re p a ir and modernization purposes.
1/ Note:
The 25 rep o rtin g banks, lo ca te d in 1U c i t i e s , re p re se n t about tw o -fifth s o f
a l l member banks' reso u rces and about one-fourth of a l l consumer in stalm en t
loans outstanding a t Fourth D i s t r i c t member banks.
0.7.2
F e d e r a l R e s e r v e B a n k of C l e v e l a n d
Research Department
DEPARTMENT
STORE TRADE
F o r He l p as p
A*
Newspapers, December 22
Date Deceitlbe^ 21 > 195U
MONTHLY DEPARTMENT STORE SALES
November 195U
* T o tal Sales
M etropolitan
Area
% Change from year-ago
Nov. 15U
Jan.-N ov. l Sk
■a# Index, adjusted far seaso n al v a ria tio n
(l9l|.7-l*9 average d aily s a le s = 100)
Year
S ep t.
O ct.
Nov.
1953
195U
195k
1 95k
FOURTH DISTRICT
- 2
- 9
113
101
106
10 9
Columbus
Portsmouth (c )
S p rin g field
Toledo
C in cin n ati
Akron
Lexington
WheelingSteubenville
Cleveland
Canton
Youngstown
E rie
Pittsb u rgh
+
+
+
+
-
6
5
3
1
1
1
1
-0 + 1
-6
- 5
- 3
- 7
- k
122
135
92
113
llii
116
n .a .
nu
120
86
113
105
106
H*
126
139
92
105
116
118
n *ci*
125
1k3
90
115
120
109
n .a .
- 2
- 2
- 2
- 3
- k
n .a .
- 6
- 7
- 8
-1 0
- 8
n •cl*
107
lilt
111
132
127
n .a .
97
108
99
115
110
n .a .
107
nu
106
119
121
n .a .
100
110
99
123
116
n .a .
■> Unadjusted f o r number of trad in g days
•5Hi- Adjusted fo r number of trad in g days
(c )
n .a .
C ity only
Wot av aila b le
Sales by Fourth D i s t r i c t department s to r e s during November were 21$ la r g e r
than in O ctober, on an average d a ily sa le s b a s i s . The gain was g re a te r than th e
usual seasonal r i s e between the two months, and re su lte d in a 3$ in crease in th e
seaso n ally adjusted sa le s index. At 105$ of 19^7-1|9 average d a ily s a l e s , adjusted
s a le s during November were th e la r g e s t of any month so f a r in 195k> but were s t i l l
below the average f o r th e y e a r 1 9 5 3 Despite th e improvement in s a le s from the previous mouth, the November t o t a l
was 2$ le s s than during the year-ago month. Since November th is y ear had one more
trad in g day than l a s t y e a r , a comparison of average d a ily s a le s shows a y e a r -to -y e a r
drop of 6 $ .
Sales fo r the year
months of l a s t y e a r.
195k through November show a 9$ lo ss from the corresponding
The above fig u re s f o r th e Fourth D i s t r i c t include a l l l i s t e d a r e a s , although
P ittsb u rg h data are n o t shown s e p a ra te ly .
M etropolitan Areas
Y e a r-to -y e a r s a le s gains were scored by fo u r major re p o rtin g ce n te rs during
November. The l a r g e s t gain was rep o rted by Columbus where s a le s topped the y ear-ag o
month by 6 $ . Portsmouth and S p rin g field followed with margins of 5$ and 3%
r e s p e c tiv e ly .
Toledo sco red the l a r g e s t s a le s in cre a se from th e preceding month on an adjusted
b a sis* A fter allowances f o r trad in g day d iffe re n ce s and f o r u su al season al move
ments, th e gain th e re was 1 0 $ .
H -8
F e d e r a l
R e s e r v e
Research
For
R p.lensr
B a n k
o f
C l e v e l a n d
Department
January 6, 1955
D <i t e
A. M. Newspapers. January 7
W eekly D ep artm en t S to re S a le s
FOR WEEK ENDED
% Change from Corresponding Period a Year Ago
k Weeks
M etropolitan
Area
Ja n . 1
Akron
C in cin n ati
Cleveland
Columbus
E rie
Pittsburgh#
Toledo
Other C ities*-*
DISTRICT TOTAL
U. S. T o tal
Jan u ary l j 1955
Week Ended
Dec. 25
- 11
+20
-17
-±6
+2b
+14
Dec. 18
+ 3
+ 3
- 3
Ended
Ja n . 1
+ 5
+ 3
- 1
+ 7
- 2
+16
+
- 1
+ llr
+ b
+
+26
+12
+18
+15
-13
+12
-0 -
+
+
+lbr
■*-15
+
2
+ b
+
it
+ 5
1
- 3
n .a .
+16
6
jtJL
1
l
IT •cl ♦
Fourth D i s t r i c t department s to r e sa le s l a s t week were
a y ear ago.
Year
195b
- 6
% Change
from 1953
Week of
Ja n .
3
- 9
- 2
- b
- 6
- 8
+
-10
1
- 7
n .a .
- b
- 3
- 8
-10
n .a .
- 9
+ b
- 5
n .a .
3% below th e lik e week
The d o lla r volume o f s a le s was approxim ately h a lf o f the preceding week‘ s
t o t a l , when the 195b Christmas tra d in g season drew to a c lo s e . The d eclin e was
le s s than seaso n al e x p e cta tio n s, however, and the adjusted s a le s index rose fo u r
points to 116£ of 19 b 7 -b 9 average d a ily s a l e s .
Prelim inary estim ates f o r December, based on the weekly s a le s perform ance,
in d ica te th a t se a so n a lly adjusted s a le s gained approxim ately
from the November
l e v e l . On t h i s b a s i s , adjusted sa le s during the month o f December would sco re
the highest of any month in 1 95b, or 2% above the y ear-ago fig u re .
M etropolitan Areas
Reports from th e major cen ters in th e D i s t r i c t ranged widely l a s t week from
a y e a r-to -y e a r gain o f 26# in P ittsb u rgh to a 17$ y e a r -to -y e a r lo ss in C in cin n a ti.
For the fo u r weeks ended January 1 , Toledo re p o rte d a gain of '!$% over th e
lik e period a y e a r ago. Sales in Columbus were
higher than in the y ear-ag o
p erio d .
Adjusted Index
The weekly index of Fourth D i s t r i c t department s t o r e s a l e s , adjusted f o r
season al v a ria tio n and f o r number o f trad in g days, is as follow s f o r the p a st
four weeks:
(19b7-b9 = 100)
Week ended: December 11 — l i b
December 25 — 112
December 18 — 112
January
1 — 116
F o otn otes:
# C ity o n ly .
<h:- Includes re p o rts from s to r e s in Ashland and Lexington, Kentucky;
Canton, Dayton, Lima, M ansfield, Portsmouth, S p rin g fie ld , Steu
b e n v ille , Wairen and X enia, Ohioj Greensburg, Sharon and Union
town, Pennsylvania; and Wheeling, West V irg in ia ,
r R evised,
n .a . Not a v a ila b le .
G .l?
F e d e r a l
DEPARTMENT
R e s e r v e
Research
B a n k
o f
C l e v e l a n d
Department
STORE TRADE
F<> r l i d (>a .S
p. M. Newspapers, December 30
/)„ teDecember 29, 195U
DEPARTMENT STORE CREDIT
(Fourth D i s t r i c t )
November 19$k
Changes in Sales and Accounts Receivable
Sales during month:
Cash
Charge
Instalm ent
T o ta l*
Accounts r e c e iv a b le , end of month: Charge
Instalm ent
P ercent Change from
Xear-Ago Month
Previous Month
+21
- h
+20
- 3
+ 6
+17
- 2
+20
- 2
- 3
+13
+ 5
Nov.
Percentage D istrib u tio n o f Sales
Cash
Charge
Instalm ent
*
195k
3 6 .0 $
5 1 .5
1 2 .5
L
O ct.
195U
Nov.
1953
5 1 -5
1 2 .8
5 1 .8
1 1 .6
35.7%
36.6%
Includes some s to r e s which do not re p o rt d is trib u tio n of sa le s by ty p e .
Fourth D i s t r i c t department s to r e s ' instalm ent-account s a le s during
November were 6% g re a te r than in November, 19f>3j however, moderate
y e a r -to -y e a r d eclin es of h% fo r cash s a le s and 3$ fo r re g u la r chargeaccount s a le s re su lte d in t o t a l s a le s f o r the D i s t r i c t 2% below the
year-ago month. Instalm ent s a l e s ' share of t o t a l November s a le s was
1 2 .5 $ , a gain over th e year-ago le v e l and th e high est r a t i o rep o rted
fo r th e month in th e l a s t twelve y e a rs .
As i s customary f o r the month, s a le s of a l l types showed su b s ta n tia l
in creases from the le v e ls of the preceding month. The l a r g e s t in cre a se
was th e 21$ gain in cash s a l e s , although charge-account sa le s gained 20%.
Accounts re ce iv a b le a t the end of th e month were moderately sm aller
than a y ear ago. Charge-account re ce iv a b le s in creased 1 3% from the
previous month's t o t a l .
Note: Beginning with th is is s u e , the form of the "Department
S to re C red it" re le a se is re v is e d t o show th e p ercen t change from the
year-ag o month and the previous month f o r cash , ch arge, and instalm ent
s a le s and accounts re c e iv a b le . The percentage d is trib u tio n o f the
th ree ca te g o rie s of s a le s is continued f o r th e cu rren t and y e a r - e a r l i e r
months, but with th e add ition of the preceding month as w e ll. Some
d e ta ile d d ata fo r previous years are now om itted.
Federal
R e serv e
Research
B a n k
of
C le v e la n d
Department
Fo r
Release A.M. Newspapers, December 20, 195k
Bn to December 1 7 . 195U
BANK DEBITS - NOVEMBER 19 gU
Debits to demand deposits (excep t U. S. Government and interbank) rep o rted by banks
in 32 Fourth D i s t r i c t cen ters to ta le d # 1 0 ,8 l5 ,U 8 7 ,0 0 0 during November, to mark a 1 0 .3 $
gain from a year ag o .
The y e a r-to -y e a r in cre a se was the la r g e s t to be posted sin ce mid-
1953, and the expansion over Octcber was a co u n ter-season al movement.
For the th r e e -
month period ended with November, debits volume was $30,61*3,U95,000, or a 0 .1 $ d eclin e
from the year-ago p eriod .
Ten L a rg e st Centers
Bank deb its a t th e ten la r g e s t cen ters to ta le d $ 9 ,9 l| 2 ,9 l6 ,0 0 0 , which was an in cre a se
of 1 0 .9 $ from November, 1953in four months.
This was the f i r s t in cre a se from a year ago to be posted
The three-month t o t a l completed in November was 0 .1 $ below the y ear-ago
mark.
P ittsb u rg h led a l l cen ters with a 2 8 .8 $ gain in d eb its from a year ago.
Other
c i t i e s to show s u b sta n tia l in cre a se s were Columbus and Dayton, which rep o rted gains of
1 1 .7 $ and 1 1 .2 $ , r e s p e c tiv e ly .
Toledo, C in cin n a ti, and Canton a lso recorded gains from
a year ago.
Debits a t Akron, Youngstown, and E r i e , however, f a ile d to measure up to the y e a r ago mark, while d eb its a t Cleveland were v i r t u a l l y unchanged from a year ago.
Twenty-two Smaller Centers
The volume of d eb its a c t i v i t y a t the twenty-two sm aller ce n te rs during November
to ta le d # 8 7 2 ,5 7 1 ,0 0 0 , an in crease of
h*0% from the year-ago t o t a l .
y e a r-to -y e a r gain to be rep o rted since February.
This was the f i r s t
During the three-month period ended
in November, demand deposit a c t i v i t y was 0 .2 $ le ss than a year ago.
Bank deb its a t Covington-Newport and a t Lexington were n e a rly
year ago, while d eb its volume a t Greensburg was up by 1 3 .9 $ .
1$% g re a te r than a
Warren and Greensburg
posted new a ll-tim e highs during the re p o rtin g p erio d .
Sharon, Portsmouth, and B u tle r were among the ce n te rs which f a ile d to equal th e
year-ago mark.
Federal
R eserv e
Research
Fo r
B a n k
of
C le v e la n d
Department
D a t e BRCfiTnbpr 17, 195k
R e l e a s e A.M. Newspapers. December 20, 195k
BANK DEBITS* IN 32 FOURTH DISTRICT CITIES - NOVEMBER 195k
(in thousands o f d o lla rs )
%
No. o f
Reporting
Banks
November 195k
172 A ll 32 Centers
$ 1 0 ,8 l5 ,W 7
Changes From
Year Ago
+10.3#
3 Months
ended
November 195k
$30,6k 3,k 95
%
Change From
Year Ago
- 0 .h %
10 L arg est C enters:
5
5
8
9
7
k
6
k
5
38
Akron
Canton
C incinn ati
Cleveland
Columbus
Dayton
Toledo
Youngstown
E rie
P ittsb u rgh
Ohio
n
3 8 k ,7 U 1
- 2 .8 £
1 ,1 0 7 ,6 5 8
lk 8 ,5 9 7
+ 3 .9
+ 5 .2
- -SHf+ 11.7
- 1 .6
- 0 .5
kkk,278
3 ,8 2 8 ,3 9 3
7,7k2,k 83
2 ,3 9 8 ,0 8 3
1 , 0k 6,993
l ,k 6 9 ,3 9 8
5 5 2 ,7 6 0
367,605
+ 2 8 .8
9 ,0 8 1 ,1 2 8
n
1 ,3 2 8 ,0 7 8
n
2 ,6 2 7 ,5 5 k
820,352
357,308
51k ,293
it
11
11
11
1 8 6 ,5 2 6
Pa.
120,39k
3,k 5 5 ,0 7 3
11
91 T otal
+ 1 1 .2
+
6 .1
- 3.7%
- k.O
-
0 .2
- 9 .2
+ 8 .9
+ 3 .9
- 2 .8
- 6 .2
- 2 .9
+ 7 .1
o.k%
$ 9 ,9 k 2 ,9 l6
+10.9#
$ 2 8 ,0 3 8 ,7 7 9
-
$
+lk .956
+ lk . 8
+ 5 .0
+ 7 .5
+ k .7
+ 7 .0
- 1 .7
n .a .
- 5 .2
+ 0 .5
- 2 .5
+ 6 .1
+ 2 .3
- 3 .8
- -JHi+ 1 3 .9
n .a .
- 2 .7
n .a .
+ 6 .2
- 5 .9
+ 1 .1
$
+ k.C#
| 2 , 6 0 k ,716
+ 7 .1 *
+ 1 0 .0
+ 2 .8
+ 2 .5
- 5 .1
+ 7 .8
- 3 .k
n .a .
— 8 .2
- 3 .1
- 3*k
- 2 .1
- 1 .0
- 5 .7
- 6 .0
+ O.k
n .a .
- 6 .7
n .a .
+ O.k
- 1 7 .7
- 7 .3
- 0 .2 %
22 Other C en ters:
9 Covington-Newport,Ky.
11
7 Lexington
3 E ly ria
Ohio
it
3 Hamilton
tt
2 Lima
11
5 Lorain
n
3 Mansfield
n
2 Middletown
ti
3 Portsmouth
11
3 S p rin g field
it
1* Steub enville
ti
2 Warren
11
3 Z an esville
Pa.
3 B u tler
it
1 Franklin
it
2 Greensburg
it
k Kittanning
it
3 Meadville
ti
5 New C astle
11
3 O il C ity
it
5 Sharon
W. Va.
6 Wheeling
81 T o tal
$
57,23k
83 ,2 0 9
3 0 ,5 6 1
6 0 ,8 3 8
6 0 ,9 8 3
27,5k 6
6 3 ,0 0 3
5 1 ,3 5 0
28,972
5 8 ,6 6 5
2 7 ,6 7 5
6 8 ,6 1 2 H
32,162
39 ,1 0 1
6 ,7 5 7
3 0 ,3 6 6 H
n*a*
1 5,5 6 5
n* st«
2 3 , 2 k8
32,972
73,kk2
8 7 2 ,571
168,176
2 3 9 ,8k5
9 2 ,6 8 6
179,352
1 8 6 ,1 0 1
8 3 ,8 7 1 H
1 9 1 ,093
11*7,168
88,07k
1 7 9 ,3 5 0
8 5,6 5 5
187,183
9 7 ,6 7 8
1 2 3 ,k35
20,k33
79,522
n .a .
k9,753
n .a .
6 8 ,6 9 5
9 5 ,0 1 6
215,083
* Debits to demand dep osits o f in d iv id u als, p a rtn e rsh ip s, co rp o ratio n s, s t a t e s , and
p o l i t i c a l subdivisions only.
H Denotes a ll-tim e high
n .a . - not a v a ila b le
* * - Less than 0 .05^
Federal
For
Release
R eserv e
B a n k
of
C le v e la n d
Research Department
Date December Ik . 1951*
A.M. Newspapers. December 1 6 , 1951*
TIME DEPOSITS* - NOVEMBER
195k
(L a st Wednesday of the Month a t 52 Banks in 12 Fourth D i s t r i c t C itie s )
C ity and Number
of .banks
Time Deposits
November 21*
Cleveland (1*)
P ittsb u rgh (8 )
C incinnati (6 )
Toledo (U)
$ 1 ,0 7 8 ,9 6 5 ,0 0 0 H
5 9 8 ,7 0 7 ,0 0 0
1 7 5 ,3 6 3 ,0 0 0
128,1*32,000
Akron (3 )
Columbus (3 )
Youngstown (3 )
Dayton (3 )
1 2 8 ,8 0 1 ,0 0 0
99,3l*5,ooo
7 7 ,5 1 1 ,0 0 0 H
5 8 ,2 3 7 ,0 0 0
Canton ( 5 )
E rie (3 )
Wheeling (5 )
Lexington (5 )
TOTAL - 12 C itie s
1*8,716,000
1*9*532,000 H
2 6 ,5 9 5 ,0 0 0
1 5 , 1*3 1 ,0 0 0
$2,1485,635,000
Average Weekly Change
Since October 27
Change Since
October 27
November 1953
+$ 8 2 6 ,000
- 2,11*8,000
978,000
— 6 0 7 ,0 0 0
+$ 3 , 3 0 6 ,0 0 0
- 8 ,5 9 1 ,0 0 0
3 , 9 1 0 ,0 0 0
- 2 , 1*2 9 ,0 0 0
+$ 81*, 1*10,000
+. 1*7,786,000
+
1,1*93,000
+
3 ,5 3 9 ,0 0 0
_
+
—
3 8 ,0 0 0
2 6 ,0 0 0
3 ,0 0 0
339,000
1 5 0 ,000
10 2 ,000
+
1 3 ,0 0 0
— 1 ,3 5 7 ,0 0 0
+
+
+
+
11,51*0,000
3 ,2 1 2 ,0 0 0
2 ,3 5 9 ,0 0 0
3 ,0 5 3 ,0 0 0
—
3 3 8 ,000
1*5, ooo
1 0 2 ,000
il*,ooo
_
1 , 3 5 0 ,0 0 0
-
1 8 0 ,0 0 0
1*09,000
5 5 ,0 0 0
+
+
+
+
6 6 7 ,0 0 0
1 ,5 9 6 ,0 0 0
2 6 2 ,0 0 0
1,11*0,000
+
+
-§ 3 ,6 8 8 ,0 0 0
—
-
■4Hi,7Uii,ooo
+ ♦ 1 6 1 ,0 5 7 ,0 0 0
H Denotes new a ll-tim e high
Time deposits in 12 Fourth D i s t r i c t c i t i e s declined by $ll*,7l*l*,000 during November
to a t o t a l of $ 2 ,1 *8 5 ,6 3 5 ,0 0 0 . While a decline in time deposits i s usual a t th is time of
y e a r, the average weekly r a t e of d ecrease, $ 3 ,6 8 8 ,0 0 0 , was s u b sta n tia lly la rg e r than th a t
rep orted in any year sin ce the s t a r t of th is s e r ie s in 191*8. The le v e l of time d ep osits
a t the end of November was $ 1 6 1 ,0 5 7 ,0 0 0 above a year ago, however.
Pittsb urgh posted the la r g e s t decrease in time d ep o sits, with an average weekly r a te
of declin e amounting to $2,11*8,000, the f i r s t decrease in a year fo r th a t c i t y . At Cin
c in n a ti, deposits were reduced a t an average weekly r a t e of # 9 78,000. The average r a te
of reduction in time deposits a t Dayton was $ 3 3 9 ,0 0 0 , while the r a t e o f declin e a t Can
ton was $ 3 3 8 ,0 0 0 . The r a t e of decrease posted by each of these four c i t i e s was the
sharpest to be rep orted in seven y e a rs.
Time deposits a t Cleveland, however, rose a t an average weekly r a t e o f § 8 2 6 ,0 0 0 , to
reach a new a ll-tim e high. Modest gains were recorded a t E rie and Youngstown, both o f
which reached new highs in time d ep o sits.
* Representing c h ie fly savings deposits owned by in d iv id u a ls, but time dep osits of
partnerships and corporations a re a lso included.
HISTORY OF FEDERAL RESERVE BAM OF CLEVELAND
This n a rra tiv e records important f a c t s and happenings in connection
with the establishm ent of the Fourth D i s t r i c t Reserve Bank a t Cleveland^
the important events in the organization of the Bank p rio r to i t s openingj
and m atters which are considered of importance or of i n te r e s t in the a f
f a i r s of the in s t i t u t i o n .
The n a rra tiv e has been compiled la r g e ly from
published sou rces, supplemented by suggestions and in cid en ts mentioned by
the few remaining people in the organization who were "in the know” in
the e a rly stages of the bank’ s l i f e .
I t i s in e v ita b le th a t in a record
of th is nature much th a t is of i n te r e s t w ill be overlooked.
On the other
hand the read er may be assured t h a t , while what i s of i n t e r e s t or of
h i s t o r i c a l value i s la r g e ly a m atter of opinion, no r e a l l y important
happening o r occasion which i s a m atter of reco rd or of r e c o lle c tio n has
been om itted.
When the Reserve Banking Act was passed in December of 1913, the or
g anization of the System, including the determ ination of the number of
banks to be e stab lish ed and the lo ca tio n of such banks, was l e f t to the
Organization C om m ittee,i/con sistin g of the S e cre ta ry of the Treasury
(William Gibbs McAdoo), the S e cre ta ry of A griculture (David Franklin
Houston), and the Comptroller of the Currency (John Skelton W illiam s).
E arly in 19111, the Organization Committee
p a rts of the country to perm it c i t i e s to p resent t h e ir claims as candi
d ates f o r the lo ca tio n of a Fed eral Reserve bank.
Each c i t y was requested
to present i t s suggestions as to the number of d i s t r i c t s th a t should be
1 / Fed eral Reserve A ct, Section 2 , P a r. 1 .
2/
U . S. Reserve Bank Organization Committee — Location of Reserve
D is tr ic ts in U. S ., pp. 375=379
- 2 cre a te d , the t e r r i t o r y to be included in each, and the reasons f o r i t s
own s e le c tio n as a Federal Reserve C ity .
Following announcement of the procedure to be observed, a committee
was organized in Cleveland under the leadership of the Cleveland Chamber
of Commerce, which represented also eigh t other organizations headed
by the Cleveland Clearinghouse A sso ciation .
This committee s e le cte d an
executive committee co n sistin g of Colonel John J . Su llivan , then p re s i
dent of the Cleveland Clearinghouse A sso ciation ; the Honorable Newton D.
Baker, then Mayor of the C ity of Cleveland; Warren S. Hayden, then
presid en t of the Cleveland Chamber of Commerce; E lb e rt H„ Baker, then
p resid en t of the P lain Dealer Publishing Company; and Fred erick H.
Goff, then president of The Cleveland Trust Company.
Edwin C. B a x te r,
then a s s is ta n t s e c r e ta r y and in d u s tria l commissioner of the Cleveland
Chamber of Commerce, was assigned as s e c re ta ry of the committee, which
proceeded a t once to map out the eleven d i s t r i c t s which i t proposed.1 /
D i s t r i c t Number Five was to include a l l of Ohio, tw enty-five counties of
western Pennsylvania, nine c o m tie s of western New York (inclu ding the
C ity of B u ffa lo )„ four counties in the panhandle of West V irg in ia, and
nine coun ties of southeastern Michigan (inclu ding the C ity o f D e tr o it),
with the Fed eral Reserve bank t o be lo ca te d a t Cleveland.
The views of
the Cleveland Committee were presented to the O rganization Committee a t
a meeting which was held in Cleveland on February 1 7 s 19 lli.
Applications fo r the lo c a tio n of the Federal Reserve bank likew ise
were f ile d by re p re se n ta tiv e organ izations in Cincinnati^/and in P ittsb u rg h .^ /
1 / U„ S. Reserve Bank O rganization Committee — Location of Reserve
D i s tr ic t s in U. S ., pp. 91 f f
2 / I b i d ., p.
39
3 / I b i d ., p. 281 - See a lso Appendix B
-3 The rep o rt of the Reserve Bank Organization Committee, tran sm ittin g to
the United S ta te s Senate in response to a request from th a t body the
b rie fs and arguments f i l e d by the th irty -se v e n c i t i e s which asked to be
designated as Fed eral Reserve bank c i t i e s ,i /i n c l u d e s mention of the c i t i e s
of Wheeling, West V irg in ia, and Columbus, Ohio.
The b r ie f f i l e d in be
h alf of Columbus was submitted by the Ohio N ational
Bank.?/ The Committee
also r e fe r s to “statem ents in beh alf of Wheeling, West V irg in ia ,"^ /w ith
out referen ce to who f i l e d the statem ents, and we can fin d no record of
p u b lication of such statem en ts.
I t i s e n tir e ly p ossib le t h a t , as was
the case with Columbus, the b r ie f was f i l e d by a bank, or p ossib ly the
Chamber of Commerce.
In the ta b u la tio n of votes c a s t , in d ica tin g f i r s t ,
second, and th ird choice fo r Reserve bank c i t i e s by S ta te s ,fe/columbus r e
ceived t h i r t y - s i x f i r s t ch o ice, and Wheeling one second choice v o te .
There is no evidence th a t the claim s of Columbus and of Wheeling were
a t any time given serio u s co n sid eratio n .
The Pittsb urgh b riefs/w as presented to the Reserve Bank Organization
Committee a t a meeting held in Washington on January 1 6 , by a d elegation
co n sistin g of President William H. Stevenson, John B. Barbour, and W. S.
Lindeman of the Chamber of Commerce; President Charles McKnight, T. Hart
Given, and J . R. McCune rep resen tin g the Pittsburgh Clearinghouse A sso ciatio n .
They were accompanied by Honorable James F ran cis Burke, then a Member of
Congress from Pittsb urgh with a n atio n a l rep u tatio n as a sp ellb in d er.
1 / U. S. Reserve Bank O rganization Committee — Location of Reserve
D is tr ic ts in U. S ., pp. 366-7
2 / I b i d ., p.
31h
3 / I b i d ., p. 381
]x/ I b i d ., pp. 3 5 1 -6
/ See Apendix B
-
h
-
The b r ie f f ile d by C incinnati was prepared under the d ire c tio n of
Fred erick C. Hicks, p rofessor of economics and commerce a t the U niversity
of C incinnati, fo r the Jo in t Committee on the Regional Bank, which rep re
sented the C incinnati Clearinghouse, the Chamber of Commerce, and the
Businessmen's Club.
The m a te ria l presented was very elab orate and complete.
The t e r r i t o r y to be covered by the Cincinnati bank included the S tates of
Ohio, Indiana, West V irg in ia, Kentucky, and Tennessee.
Following the d ecision of the Organization Committee to lo c a te the
bank in Cleveland, another b r ie f i/p r o te s tin g the d ecision was f ile d in
behalf of Pittsburgh on August 1 2 .
more than two thousand words.
I t was very co n cise , containing not
The tone was d e f in ite ly im p o litic and the
tenor of the e n tire document was t o rid ic u le any claim th a t Cleveland
might e n te rta in as a possible s i t e f o r the new bank.
Cleveland’ s b r i e f in re b u tta l of the Pittsburgh b r ie f ,.2 /f ile d October 3 ,
was prepared by the members of the committee who signed the o rig in a l b r i e f ,
a s s is te d by S. H. T o lie s, a Cleveland a tto rn e y .
I t was s ta te d th a t Colonel
J . J . Sullivan would go to Washington to atten d the hearing when the
Pittsburgh p ro te st was given f i n a l co n sid eratio n .
The hearing was s e t f o r
January 1 3 , 1915.
C incinnati was e a rly elim inated from co n sid eratio n and the co n te st
f o r the lo ca tio n of the Fourth D is tr ic t bank became very b i t t e r between
the organ ization sponsoring Pittsburgh and th a t which was championing the
cause of Cleveland.
The reasons which prompted the Organization Committee
to lo ca te the bank in Cleveland have never been announced.
I t has been
f r e e ly charged th a t the determ ination was la r g e ly the r e s u lt of the i n -
1 / U. S. Reserve Bank Organization Committee — Location of Reserve
D is tr ic ts in U. S ., p. 381
2 / Annual Report of Federal Reserve Board 19lU , p . 192
-5 fluence of Honorable Newton D. Baker, then Mayor of Cleveland, prominent
in n atio n al Democratic c i r c l e s , = /and l a t e r S e cre ta ry of War in President
Wilson*s ca b in e t.
Other arguments run th a t P ittsb u rgh was elim inated
because of c e r ta in banking d i f f i c u l t i e s through which the C ity of P i t t s
burgh had ju s t passed, involving the suspension of la rg e and important
banks.
Dr. H. Parker W illis in his FEDERAL RESERVE
s ta te s th a t
the reasons f o r the s e le c tio n of the twelve c i t i e s determined by the
Organization Committee were f ile d in the form of a co n fid e n tia l memoran
dum, and so f a r as i s known the contents of th is memorandum have never
been made p u b lic.
The d ecision of the Organization Committee to lo c a te the Fourth
D i s tr i c t bank in Clevelands/was stubbornly and vigorously co n tested by
the committee presenting P ittsb u rg h 's claim .
Based upon an opinion of
the Attorney General of the United S tates th a t the Reserve Board had no
a u th o rity in law to change the designation of a Reserve bank c i t y once
the determ ination had been made by the O rganization Committee J i /t h e Board
declined to take a ctio n on the Pittsb urgh p e titio n to name th a t c i t y
in stead o f Cleveland as the lo c a tio n f o r the Fourth D i s t r i c t bank.
The P ittsb u rgh Chamber
a re g u la r monthly meeting on A pril
$a and unanimously approved, s ta te d
th a t i t had come to the knowledge of the Chamber th a t the banking in -
1 / Mr. Baker nominated Woodrow Wilson a t the Democratic N ational Conven
tio n in 1912.
2 / Reference to the complete co n fid e n tia l re p o rt of the O rganization
Committee found in footn otes on pages 585> 589 W illis ' Federal
Reserve System.
3 / U. S. Reserve Bank Organization Committee — Location of Reserve
D i s tr ic t s in U. S ., p . 3 6 1 f f
k / W illis Fed eral Reserve System, p. 758 f f
5 / See Appendix C
- 6 s titu tio n s comprising Groups Nos. 7 and 8 of the Pennsylvania Bankers
A ssociation intended to make ap p licatio n to the Reserve Bank Organization
Committee to modify the plan so as to permit the banking in s titu tio n s in
western Pennsylvania to “secede" from the Fourth D i s t r i c t and to be in
cluded in the d i s t r i c t the reg io n al bank of which i s to be lo cated a t P h ila
delph ia.
In the Annual Report of the Fed eral Reserve Board f o r 191b, l i s t i n g
the appeals from decisions of the Reserve Bank Organization Committee,i/no
referen ce i s made to any appeal f ile d by the banks in Groups 7 and 8 , and i t
i s presumed th a t the proposed a ctio n proved to be a "dud11.
One of the step s taken by the Organization Committee in determining
the lo ca tio n of the Federal Reserve banks was to p o ll the 7,b71 n a tio n a l
banks throughout the country which had form ally assented to accep t the
provisions of the Federal Reserve A ct, as to th e ir f i r s t , second, and
th ird choice p re fe re n ce s. £ /
I t i s in te r e s tin g to observe th a t of the th ree
c i t i e s in th is t e r r i t o r y whose claim s were given serio u s co n sid eratio n ,
Cleveland receiv ed th e sm a lle st number of f i r s t choice v o te s .
Even in
the S tate of Ohio i t receiv ed a much sm aller vote than did C in cin n ati.
The tab u latio n below shows f i r s t choice votes f o r the c i t i e s o f P ittsb u rg h ,
C in cin n ati, and Cleveland, s e t up to show the p referen ces of banks in the
d i s t r i c t , in the S ta te of Ohio, and in the country as a w hole.^/
D i s t r i c t Vote.
P ittsb u rgh
C incinn ati
Cleveland
Ohio Vote.
N ational Vote.
29h
19k
160
299
110
107
110
31
355
1 / F ed eral Reserve Board Annual Report 19lU , p. 192
2 / U„ S. Reserve Bank Organization Committee — Location o f Reserve
D is tr i c t s in U„ S ., p. 3 6 1 National C ity Bank of N. I . , Monthly
l e t t e r , February, 19lU.
3 / I b i d ., pp.
3b9, 35b, 3 5 6 -7 .
-7 A su b sta n tia l p a rt of the o u t - o f - d i s t r i c t vote f o r Pittsburgh and Cincin
n a ti came from West V irg in ia, which c a s t Ul votes f o r Pittsb urgh and 26
votes fo r C in cin n ati.
The C incinnati vote likew ise was influenced by a
f a i r l y heavy vote c a s t f o r th a t c i t y by banks in Kentucky and in southern
Indiana.
Cleveland, app aren tly, did not receiv e a sin g le vote from out
side the d i s t r i c t , the d ifferen ce between the d i s t r i c t t o t a l and the Ohio
vote being the three b a llo ts c a s t by Pennsylvania banks f o r Cleveland as
f i r s t ch o ice .
I t i s likew ise of i n te r e s t to note th a t Cleveland i s the
only c i t y in which a Federal Reserve bank was estab lish ed th a t did not
receiv e a m ajority of the f i r s t choice b a llo ts c a s t f o r the se le c tio n of
such c i t y by the votin g banks in i t s d i s t r i c t .
I t may not be e n tir e ly without sig n ifica n ce th a t the Organization
Committee, on the date th a t i t announced the lo c a tio n of the twelve
Reserve banks, commented upon the claim s of many c i t i e s , including New
O rleans, A tla n ta , D allas, B altim ore, and C harlotte (N .C .) , but made no
mention whatever of P ittsb u rg h .
The f i n a l d ecisio n of the Organization Committee to e sta b lish
twelve d i s t r i c t s and twelve Reserve banks was announced in Washington
under date of A p ril 2 , 19ill.
As o r ig in a lly co n stitu te d the Fourth
Federal Reserve D i s t r i c t included a l l of the S tate of Ohio, f i f t y - s i x
counties in ea ste rn Kentucky, nineteen counties in w estern Pennsylvania,
and fou r counties in the West V irginia panhandle.
Except f o r the addi
tio n of two counties in West V irg in ia (T y ler and W etzel, which were
tra n sfe rre d to the Fourth D i s t r i c t by re so lu tio n of the Fed eral Reserve
Board on May
191$ ) , ^ the t e r r i t o r y today remains unchanged.^/
1 / W illi s 1 The F ed eral Reserve System, p. 7^2
2 / This tr a n s f e r re s u lte d in the addition to D i s t r i c t No. U of fiv e n a tio n al
banks — The F i r s t of Middleboume, F i r s t of New M a rtin sv ille , and th e
Fanners and Producers, F i r s t , and Peoples of S i s t e r s v i l l e .
- 8 On May 18, 19 lU, two rep resen tativ es each of the fiv e banks which
had been designated by the Organization Committee to f i l e an organiza
tio n c e r t i f i c a t e f o r the Cleveland bank met in the C ity of Cleveland
fo r th a t purpose. 1 /
These banks and th e ir rep resen tativ es were — Phoenix
and Third N ational Bank, Lexington, Kentucky, represented by W. A.
McDowell and W. L„ Threlkeld; F i r s t N ational Bank of C in cin n ati, Ohio,
represented by T. J . Davis and R. E. McEvilleyj The New F i r s t National
Bank, Columbus, Ohio, represented by C. R. Mayers and C, R, Shields;
The Bank of P ittsb u rgh , N. A ., P ittsb u rg h , Pennsylvania, represented
by Harrison Nesbit and Alexander Dunbar; and The F i r s t N ational Bank
of Cleveland, Cleveland, Ohio, represented by T. H. Wilson and C. E .
Farnsworth.
Mr. J . R. Kraus of The F i r s t National Bank, Cleveland, Ohio
was also presen t on th a t occasio n .
The n o ta r ia l c e r t i f i c a t e was executed
by Joseph A. Royon, a Cleveland a tto rn e y .
The c e r t i f i c a t e of organ ization
was signed on the afternoon of th a t day a t a meeting scheduled f o r 2 :0 0
o ' clo ck .
The Federal Reserve Act provides th a t the c e r t i f i c a t e s h a ll be tra n s
m itted to the Comptroller of the Currency, "who s h a ll f i l e , reco rd and
c a r e f u lly preserve the same in h is o ffice ,"^ /a n d th a t upon the f i l i n g of
said c e r t i f i c a t e with the Comptroller as a fo re sa id , the Federal Reserve
bank s h a ll become a body co rp o ra te .
Since i t i s m an ifestly impossible
th a t an organ izatio n c e r t i f i c a t e executed in Cleveland on the afternoon
of May 18, 191hj could have been f ile d with the Comptroller of the
Currency "in his o ffice*1 on th a t same d a te , i t would seem th a t th e re i s
l / Cleveland P la in D ealer, May
19, 19lU
2 / F ed eral Reserve A ct, Section 1*, p a rs. 3-U
-9 leg itim a te question whether the date of the organization of th is bank,
as given in a l l published sources and as included in the s e a l of the
bank, is c o r r e c t .
I t would appear much more probable th a t the f i l i n g
date was May 1 9 , and th a t the bank became a body corporate on th a t
d ate.
Following the f i l i n g of the organization c e r t i f i c a t e , in t e r e s t
sh ifte d to the e le c tio n of Class A and Class B d ir e c to r s .
The f i r s t
e le c tio n was conducted by the Reserve Bank Organization Committee,
a ctin g f o r the chairmen of the various Federal Reserve banks.
In a
c ir c u l a r l e t t e r p rescrib in g the mechanics of nomination and e le c tio n , y
the Committee s ta te d th a t:
"The o rgan ization of the Fed eral Reserve bank
in those d i s t r i c t s whose member banks a c t
promptly w ill not be held back or delayed to
keep pace with organ ization of banks in other
d i s t r i c t s whose member banks are slow in tak
ing a ctio n and making retu rn s to the Organization
Committee."
Apparently the e le c tio n was ra th e r lo o se ly conducted.
Although
th ere was nothing in the Organization Committee’ s c i r c u l a r fix in g a date
f o r the clo sin g of the p o lls other than to provide th a t b a llo ts must
be returned w ithin f if te e n days from t h e ir re c e ip t by the voting bank,
FINANCE in i t s issu e of Ju ly 1 1 , 19lU, s ta te d th a t "national banks in
the Fourth Federal Reserve D i s t r i c t
formal c a l l
fo r e le c tio n of d ir e c to r s of Federal Reserve Bank of C levelan d.”
being the case the p o lls should have closed on Ju ly 2 2 .
Such
Two days a f t e r
th is d a te , however, the banks of the country were n o tifie d by the
Committee th a t the p o lls f o r the e le c tio n of Class A and Class B d ir e c to r s
l / C ircu la r of Reserve Bank Organization Committee, May 6 , 19lU - (See
Appendix A)
2 / July 7, 191U
- 10 would be d e f in ite ly and f i n a l l y closed on August 1 , and th a t no votes
fo r Class A or Class B d ire c to rs received th e re a fte r would be c o u n te d .i/
I t i s evident also th a t the announcement of the e le c tio n of d ire c to rs
was not made by the Organization Committee a t one tim e.2 /
FINANCE in i t s
issu e of Ju ly 2g announced the e le ctio n of Robert Wardrop of P ittsb u rgh ,
and Thomas A. Combs of Lexington, as Class A and Class B d ire c to rs r e
s p e c tiv e ly ,
In the same issu e another dispatch in d icated th a t "the next
announcement from Washington w ill contain the names of d ire c to rs chosen by
Groups Two and T hree."
The complete l i s t of Class A and Class B d ire c to rs
was announced on August
10,2/ and there i s given below a l i s t of the f i r s t
Class A and Class B d ire c to rs of th is bank, to g eth er with th e ir p rin cip a l
business a f f i l i a t i o n s ?
Robert Wardrop, p resid en t, Peoples National Bank, P ittsb u rgh , Pa.
William S. Rowe, p re sid e n t, F i r s t N ational Bank, C in cin n ati, Ohio.
Stacy B. Rankin^ p resid en t, Bank of South C harleston, South C harleston,
Ohio, and s e c r e ta r y of Ohio Bankers
A ssociation .
Thomas A„ Combs, p resid en t, Combs Lumber Company, Lexington, Ky.
A. B. P a tric k , o i l producer, S a ly e rs v ille , Ky.
C. H. Bagley, p re sid e n t, Ajax Iron Works, Corry, Pa.
I t was common gossip th a t in the f i r s t e le c tio n of d ire c to rs the
banks in C incinnati and Pittsb urgh "ganged up" to d efeat the two p rin
c ip a l Cleveland candidates f o r d ire cto rsh ip s in Class A and Class B .k /
These were Thomas H„ Wilson, v ice p residen t of The F i r s t National Bank
of Cleveland, and Harry Coulby.
The "d eal" apparently contemplated
th a t in exchange f o r support by banks in the C incinnati area of the
candidacy of Robert Wardrop of P ittsb u rgh , the banks in the Pittsb urgh
1 / Monthly l e t t e r , National C ity Bank of New York, Aug. 19lU, p .
2 / Ib id .
3 / I b i d ., Sept. 191U, p. 11
h / FINANCE, Ju ly 2$, 1 9 lit, p. 76
9
- 11 area would support the e le ctio n of William S. Rowe of C in cin n ati.
To
secure support of the Kentucky banks i t seems to have been agreed th a t
in exchange f o r t h e ir votes f o r the Wardrop-Rowe s l a t e the Pittsburgh
and C incinn ati banks would support Thomas Combs of Lexington, and A. B.
P a trick of S a ly e r s v ille .
That the e f f o r t was su cce ssfu l i s evidenced
by the f a c t th a t a l l fou r of the gentlemen were e le c te d .
Further than t h i s , i t seems th a t the Pittsburgh and C incinnati
bankers outsmarted the Cleveland crowd in th a t both Mr. Wardrop and Mr.
Rowe were nominated by banks in a l l three groups whereas Mr. Wilson and
Mr. Coulby were nominated by banks in Group One only. 5 /
Since by the
terms of the Organization Committee's c i r c u l a r the e le c to r s were per
m itted to vote on the nominees of th e ir own group only, the possible
vote f o r Mr. Wilson and Mr. Coulby was lim ited to the banks in Group One.
As the number of banks in each voting group was very n e a rly equal i t i s
obvious th a t the Cleveland candidates were a t a hopeless disadvantage.
Following the p u b licatio n of nominations f o r Class A and Class B
d ir e c to r s by the th re e voting groups, Mr. Rowe, in a l e t t e r signed by
a l l C incinnati banks and sen t to the voting b an k s,an n o u n ced h is in ten
tio n to withdraw as a candidate f o r Class A d ir e c to r of Group One and
to run as a candidate representing Group Two, notwithstanding th a t Mr.
Rowe was id e n tifie d with a bank which was c la s s if ie d in Group One.
Such
p r a c tic e was perm itted by the terms of the law in e f f e c t a t th a t tim e.
In s p ite of Mr. Rowe's announced in te n tio n , his name appeared on the
o f f i c i a l b a llo t as a candidate f o r Class A d ir e c to r of Group One.
His
l / Mr. Wilson was erroneously nominated by one bank f o r Class B d i r e c t o r .
2 / FINANCE, Ju ly 1 1 , 1 9 1 I1 - See Appendix D (An e f f o r t has been made to
obtain a copy of th is l e t
t e r , w ithout r e s u lt)
- 12 actio n was regarded as open evidence of a deal between C incinnati and
Pittsburgh to e l e c t t h e i r two candidates in separate groups.
There appears to have been nothing unusual in the e le c tio n of Stacy
B. Rankin, of South C harleston, Ohio, and of C. H. Bagley of Corry, Pennsyl
vania.
io n .
Hr. Rankin, a t the tim e, was s e c re ta ry of the Ohio Bankers A sso ciat
A f a c to r in his e le c tio n may also have been th a t he was nominated by
banks in Groups Two and Three.
That the System was not e n tir e ly fre e from p o l i t i c a l pressure e a rly
in the organ ization days appears evident from a Washington dispatch
published in FINANCE f o r Ju ly 25, to the e f f e c t th a t the " l a t e s t tip "
a t the Treasury Building was th a t Cleveland would not get a single one
of the th ree Class C d ire c to rs of the reg io n al bank to be appointed by
the Federal Reserve Board.
I t was s ta te d th a t S ecretary McAdoo and
Comptroller Williams were said to f e e l th a t inasmuch as Cleveland was
se le cte d as the Reserve c i t y , the plums of the Fourth D i s t r i c t bank's
organization would f a l l to c i t i e s outside Cleveland.
Washington gossip, as reported in the d isp atch , was th a t the
governor^/of the bank would come from C in cin n ati, which had a candidate
in the person of Ben V. Dale, a lawyer with much experience in banking
law, who had been endorsed by the lo c a l Democratic o rgan izatio n .
It
was s ta te d th a t Dale had been in Washington seeking endorsements, and
th a t both C incinnati rep resen tativ es in Congress were " f o r " him.
I t was rumored in Washington th a t one of the other two Class C
d ire c to rs would come from Pittsb urgh and the o th er from Columbus.^/
The
1 / I t i s assumed th a t the term "governor" in the above dispatch a c tu a lly
r e fe rre d to the chairman of the board, sin ce the governor of the bank
would be e le c te d by the board of d ire c to rs of the Cleveland re g io n a l
bank.
2 / FINANCE, Ju ly l £ , l? lU .
- 13 only Columbus candidate was Harry P. Wolfe, owner of the Ohio S tate Journal
and the Columbus Dispatch, a Republican p o l i t i c a l l y , but whose newspapers
had been supporting S tate and national Democratic adm inistrations.
He
was endorsed by Governor Cox and Senator Pomerene, and was said to be
the only Ohio candidate who had the l a t t e r 1s endorsement.
When the f in a l
appointments were announced, however, one of the d ire c to rs (David C. W ills)
was from P ittsb u rgh , one (Harry P. Wolfe) from Columbus, and one (Lyman H.
Treadway) from Cleveland.
The CHRONICLE in i t s issu e of September
191U, re fe rs to rep o rts
th a t had been cu rre n t during the week of the e x iste n ce of d issen tio n in
the Board on the question of the a d v isa b ility of putting the new Federal
Reserve System in to e f f e c t a t th is tim e, and th a t pressure was being
brought to e f f e c t a delay in the appointment of Class C d ir e c to r s .
S ecretary McAdoo, while not denying th a t the postponement of the inaug
u ratio n of the System was favored in some q u a rte rs, s ta te d he would be
able to announce the Class C d ire c to rs by October 1 , and th a t the System
would then be quickly e stab lish ed .
The announcement of the appointment
of Class C d ire c to rs a t Cleveland was made on October 8 , 191U.
The i n i t i a l meeting of the Cleveland bank board, 1 / a t which a l l
members were p re se n t, was held in the Federal Building, on Saturday
morning, October 1 7 , l^ lii, a t eleven o 'c lo c k .
S. B. Rankin was e le cte d
temporary s e c r e ta r y .
The board, by l o t , determined the terms of o f fic e of the d ire c to rs
of each c l a s s , with the follow ing re s u lts
l / O f fic ia l minutes of board.
- mCLASS A
Robert Wardrop
W, S. Rowe
S. B. Rankin
Three-year term
Two-year term
One-year term
CLASS B
T. A. Combs
C. H. Bagley
A. B. P a tric k
Three-year term
Two-year term
One-year term
CLASS C
D. C„ W ills
L. H. Treadway
H# P. Wolfe
Three-year term
Two-year term
One-year term
With the ''pressure" on to open the banks a t the e a r l i e s t possible
date the immediate problems of the Board were concerned with the s e l e c
tio n of personnel, the securing of q u a rte rs, the purchase of the nec
e ssa ry equipment and su p p lies, provision fo r v a u lt space, the s e le c tio n
of the o f f i c i a l s t a f f , including the appointment of a governor, and
other b a sic organ ization d e t a i l s .
A committee was appointed to s e l e c t
q u a rte rs; another was authorized to employ coun sel.
There was a lso
appointed a committee on "nominations f o r governor", with in stru c tio n s
to re p o rt on nominations a t the next meeting of the board.
The Federal Reserve Board had extended an in v ita tio n to the gover
nors and a l l d ir e c to r s of the Reserve banks to atten d a general meeting
to be held in Washington on October
2 0 to discuss such questions as
opening d a te , b y-law s, te n ta tiv e organ ization p lan s, q u a rte rs, s t a f f s ,
what functions the banks expected to undertake a t the o u tse t, whether
the conversion of emergency currency in to F ed eral Reserve notes could
be s u c ce ssfu lly accomplished, and uniform accounting.
Since the gov
ernor of the bank would not be s e le c te d u n til the next meeting of the
1 / Annual Report o f Fed eral Reserve Board, p . 190
- I n
board of d i r e c to r s , the board a t i t s October 17 meeting s e le cte d
Chairman W ills, Mr. Rowe, and Mr. P a trick as a committee representing
the Cleveland bank to atten d the Washington m eeting.
No s p e c ia l men
tio n appears in the minutes of the Cleveland board, but a comprehensive
re p o rt o f the meeting i s contained in the f i r s t annual re p o rt of the
Federal Reserve Board, in the foxro of re p o rts rendered by committees
which had been assigned to study the various to p ic s proposed f o r con
sid e ra tio n .
On October 22, a t the second meeting of the board, which was held
in the S t a t l e r Hotel and a t which a l l the d ir e c to r s again were p re se n t,
E. R. Faneher, president of the Union National Bank of Cleveland, was
e le cte d governor o f the bank.
The by-laws approved by the Conference
o f D irecto rs a t Washington on October 20,^ /w ith amendments r e la tin g to
the composition of the execu tive committee, were adopted.
At th e meeting of the board on October 3 0 , a proposal of the
Williamson Company to fu rn ish space in the Williamson Building under an
agreement with considerable e l a s t i c i t y , was accep ted .
In the inform al
agreement provision was made fo r v a u lt space which was considered ade
quate to meet the modest demands a t th a t tim e.
Mr. Edwin C. B axter of Cleveland was e le c te d s e c r e ta r y of the bank.
At th is meeting a ls o the design of a proposed s e a l f o r the bank was sub
m itted and accep ted .
l / Annual Report o f F ed eral Reserve Board 1915* p . 165 f f
2 / I b i d ., pp. 77-79
Cleveland
General Information
Federal Keserve Notes - Ju ly 191*6
Federal Reserve Notes - September 191*6
*
#
#
*
Introductory Chapter
"H istory of Federal Reserve Bank of Cleveland"
Cleveland
ALBERT 2 . BAKER
Deputy Chairman
1-1-1*9 to 1 2 -3 1 -5 0
e' (, i
u 1
■* *
Press Release
*
#
12-31-1*8
Fed eral Reserve Notes
January
■a #
19k9
•»■ *
Clipping - Cleveland Press - 7-10-14;
Clipping - Cleveland P la in Dealer - l*-30-l*5
Clipping - Cleveland P lain Dealer -11-27-1*7
Cleveland
\„.c
GEO. C. BRAINARD
Deputy Chairman 1-1-37 to 12-31-38
Chairman 1-1-39 to 12-31-52
# * * *
Biographical Sketch
Clipping - Youngstown Vindicator - 8-1-36
Clippings - Cleveland and Youngstown papers - 12-31-38
Federal Reserve Notes - October 19U3
Clipping - Cleveland Plain Dealer - 2-2U-U6
Forbes - 10-15-1*6
Federal Reserve Notes - January 19l*9
Federal Reserve Notes - January 1950
A -M and Factory News - July 1952
Federal Reserve Notes - December 1952
* # * *
Clipping - Youngstown Vindicator - 12-30-39
Clipping - Cleveland Press - 12-26-1*7
Clipping - Cleveland Press - 12-17-52
Cleveland
EDMUND S. BURKE, JR.
Deputy Chairman 3-15-33 to 11-28-3U
Acting Chairman 11-28-3U to 2-29-36
Chairman and Federal Reserve Agent 3-1-36 to 12-31-38
* * * *
Clipping - Cleveland Press - 11-30-3U
Clipping - Cleveland Plain Dealer - 12—2—3U
Clippings - Cleveland and Youngstown papers - 11-30-31; and 12-1-3U
Cleveland
GEORGE DECAMP
Chainnan and Federal Reserve Agent 12-19-25 to 3-1U-33
# * * #
Clipping - Pittsburgh Gazette Times - 12-20-25
Clipping - Cleveland Plain Dealer - 3-16-33
Clippings - Newark Advocate - 2-28-38
Cleveland
ELVADORE R. FANCHER
Governor
10-22-lU
to
1-16-35
•a * ■& *
Biographical Sketch
Clipping - Cleveland
Clipping - Cleveland
Clipping - Cleveland
Clipping - Cleveland
Press
Press
News
Plain
- 3-16' >33
- 1-16' ■35
- 1- 16' -35 and 1-17-35
Dealer - 1-17-35 and 2-5-35
Cleveland
>''A
'
MATTHEW J. FLEMING
>
Assistant to Governor 1-9-19 to 9-30-20
Deputy Governor
10-1-20 to 1-19-35
Governor
1-19-35 to 2-29-36
President
3-1-36 to 9-15-UU
* * * *
Biographical Sketch - 9-11-1*1*
Federal Reserve Notes - September 191*1;
* * * *
Clipping - Cleveland Press - 1*-17-1*1*
Clipping - Cleveland News - U-17-UU
Clipping - Cleveland Plain Dealer - It—18—UU
Cleveland
WILLIAM H. FLETCHER
Assistant Federal Reserve Agent 7-1-23 to 11-28-3U
Acting Federal Reserve Agent
11-28-31* to 2-29-36
Assistant Federal Reserve Agent 3-1-36 to 7-31-36
Vice President 8-1-36 to 11-30-1*5
First Vice President 12-1-1*5 to 12-31-52
* * * *
Biographical Sketch
Press Release - 11-16-1*5
Clipping - American Banker - 11-19-1*5
Federal Reserve Notes - November 191*5
Federal Reserve Notes - February 19l*7
Federal Reserve Notes - March 191*8
Press Release - December 16, 1952
Federal Reserve Notes - December 1952
Clipping - American Banker - 1-15-53
Cleveland
WILBUR D. FULTON
Vice President 1-10-Ii6 to 12-31-52
F irst Vice President 1-1-53 to 5-1U-53
President 5-1U-53
*
#
Biographical Sketch
Press Release - 1-13-1*9
Federal Reserve Notes - January 19l*9
Federal Reserve Notes - December 1952
Press Release - 5-15-53
Federal Reserve Notes - May 1953
Cleveland
RAY M. GIDNEY
President 9-16-1*1* to l*-l6-53
# # * *
Biographical Sketch
Press Release
- 9-11-1*1*
Federal Reserve Notes - July
19l*7
191*8
191*9
Federal Reserve Notes - September
Federal Reserve Notes - August
Press Release -
6-15-51
1951
- April 1953
Federal Reserve Notes - July
Federal Reserve Notes
* # # #
Clippings - Cleveland papers - 9-12-1*1*
Clipping - Cleveland Plain Dealer - 7-16-1*9
Clipping - Cleveland Plain Dealer - 2-21-50
Clipping - Cleveland Plain Dealer - 6-2l*-5l
Clipping - Cleveland News - 2-20-53
Clipping - American Banker - I*—1—53
Cleveland
REUBEN B. HAJS
1-1-1*1 to 6-30-1*3
7—1—U3 to 11-30-1*5
Vice President and Secretary
First Vice President
* # # *
Biographical Sketch
3-1-U5
- 11-13-1*5
Press Release Press Release
Cleveland
REYNOLD E. KLAGES
Deputy Chairman 1-1-39 to 12-31-1*8
* # # #
Federal Reserve Notes - November l?i*3
Press Release - 12-31-1*8
* # * *
Biographical Sketch
Office Memo - 1-7-37
Clipping - Ohio State Journal - 1-1*-1*5
Picture
Cleveland
LEO L. RUMMELL
Deputy
Chairman 1-1-53
* # * *
Biographical Sketch
Press Release - 12-31-U8
Federal Reserve Notes - January 19U9
Press Release - 12-2li-52
Federal Reserve Notes - December 1952
* * * *
Clipping
Clipping
Clipping
Clipping
-
Ohio State Journal
Columbus Despatch
North Canton Sun
Canton Repository
- 1-1-U9
- 9-2k-h9
- 11-30-U9
- 10-11-53
Cleveland
HERMAN F. STRATER
Deputy Governor, Cashier and Secretary 1-1-35 to 2-16-35
Deputy Governor and Secretary 2-16-35 to 2-29-36
Vice President and Secretary 3-1-36 to 11-29-37
* * * *
Clipping - Cleveland Plain Dealer 11-30-37
Clipping - Cleveland Press 11-30-37
Minutes - Meeting #1 - Retirement System Trustees 3—
lU
and
15-3U
Cleveland
DONALD S. THOMPSON
Vice President 8-16-1*6 to £-lii-53
First Vice President 5-li*-53
# * * *
Biographical Sketch
Federal Reserve Notes - July 191*6
Federal Reserve Notes - October 191*8
Press Release - 1-26-50
Federal Reserve Notes - February 1950
Federal Reserve Notes - September 1950
Federal Reserve Notes - June 1952
Press Release - March 31* 1953
Press Release - May 15, 1953
Federal Reserve Notes - May 1953
Cleveland
LYMAN H. TREADWAY
Deputy Chairman 10-8-li* to 12-7-19
Picture
Clipping - Iron Trade Review - 12-11-19
Clipping - Finance and Industry - 12-13-19
Clipping - Cleveland Topics - 12-20-19
Cleveland
JOHN C. VIRDEN
Deputy Chairman 1-1-51 to 12-31-52
Chairman 1-1-53
Biographical Sketch
Federal Reserve Notes - January 1951
Press Release - 12—2U—52
Federal Reserve Notes - December 1952
Press Release - 3-10-5U
* * * *
Clipping
Clipping
Clipping
Clipping
-
Cleveland Press - 12-2lt-52
American Banker - 12-31-52
Cleveland Press - 1-2-53
Cleveland Press - 1-7-53
Cleveland
LEWIS B. WILLIAMS
Deputy Chairman
1-1-20
to
3-1U—33
Chairman and Federal Reserve Agent
3-15-33
Biographical Sketch
Clipping - Cleveland Plain Dealer -
3-18-33
to
11-27-3U
Cleveland
DAVID C. WILLS
Chairman and Federal Reserve Agent 10-8-11* to 9-30-20
Member of Federal Reserve Board 10-1-20 to 3-U-21
Chairman and Federal Reserve Agent 3-5-21 to 10-22-25
* ■» * #
Editorial and Other Clippings
Cleveland
FRANK J. ZURLINDEN
Assistant to Governor 1-9-19 to 9-30-20
Deputy Governor
10-1-20 to 2-29-36
F irst Vice President 3-1-36 to 6-30-U3
* * # *
Biographical Sketch
Clipping - Cleveland Banker - 1-19-28
F O U R T H
F E D E R A L
R E S E R V E
D I S T R I C T
fo r th e y e a r
19 5 3
TEte;S«n vB
VKOC*tAI'
OF Cl-Bv F.l>/VNn
1954
January
erVe D is t r ic t - ^
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C o n ten ts
F I N A N C I A L A N D B U S I N E S S D E V E L O P M E N T S IN 1 9 5 3
Credit Policy and th e M oney M a r k e t.........................................................
4
T h e Y e a r in F o u rth D is tric t B a n k in g .........................................................
8
In d u stry in 1 9 5 3 .....................................................................................................
10
A g ricu ltu re.................................................................................................................
13
OPERATIONS
H ighlights o f ’53 Volum e o f O p erations......................................................
14
L ocation o f F o u rth D is tric t M em ber B a n k s .............................................
16
T h e New L eased -W ire S y s te m ........................................................................
18
Helping the T reasu ry F lo a t a B ond Is s u e .................................................
20
W h a t H appens to W orn-ou t C u rren cy ?......................................................
22
Som e A ctiv itie s— On and O ff th e J o b .........................................................
24
F in a n cia l S ta te m e n ts ............................................................................................
26
A P resid ent is Called to W ash in g ton ............................................................
28
. . . and E x e c u tiv e A p p oin tm en ts are M ad e a t th is B a n k . . . .
29
DIRECTORS A N D OFFICERS
30
I n a year characterized by un certainty in the
n ation ’s money m ark et, the point o f greatest
historical interest was th e abrupt turn in financial
sentim ent which occurred early in Ju n e.
A t th e tim e when th e wind shifted, the shrink
age in the m ark et value of investm ent portfolios
had reached a point where the flow of capital into
productive enterprise m ight soon be noticeably
impeded. T h e V icto ry Loan 23/£s, to cite an
exam ple, had receded into th e low 90s, and all
other gilt-edge securities were being quoted a t
com parable discounts.
I t is true th a t only a m inute portion o f the
public debt had changed ownership a t these low
levels, and th a t m ost o f the m arketable debt had
stayed in th e same hands during th e preceding
cascade o f prices. N evertheless, the shrinkage
o f values had begun to affect, so to speak, every
phase o f investm ent a ctiv ity and psychology.
T h e severe m arkdown in bond prices— th e sharp
rise in th e cost o f m oney— m eant th a t all kinds
o f fixed-incom e-producing property had suffered
a sharp decline in capitalized value. M ore than
once in th e past, such an outw ardly innocuous
b u t su b stan tial m arkdown o f basic investm ent
(as distinguished from speculative) values had
preceded a reduction in capital expenditures and
a slowdown in econom ic a ctiv ity .
T h e question n atu rally arises as to how this
situation had com e about, and how or why it
was alleviated.
R ise in Borrowing
D uring th e la tte r m onths o f 1952, econom ic
a ctiv ity had gradually reached w hat m ay be de
scribed as an overblow n phase; as th e new year
dawned, trad e and industry were boom ing along
a t an extraord in ary pace. In m any instances,
cap acity was being strained to m eet demand.
T h eo retica lly , full production and full em ploy
m ent should be no m enace to sta b ility . B u t
business boom s are usually accom panied by an
undue and unten able rate o f borrowing. T h is
one was no exception.
T h e alm ost feverish ra te o f a ctiv ity o f a year
ago was being financed to a disproportionate
degree by a steady stream of cred it expansion
which could n ot be sustained indefinitely. P e r
sonal and corporate indebtedness was increasing
m uch more rapidly th an mere population growth
required, and was reaching great and unfam iliar
m agnitudes. P articip atin g in the scram ble for
funds were individuals seeking to finance home
purchases and instalm ent buying, business e n te r
prises trying to expand physical facilities and to
augm ent working cap ital, as well as sta te and
local authorities in ten t upon an unprecedented
program o f public construction.
T h e flow o f genuine savings, how ever su b
stan tial, was inadequate to m eet th e alm ost in
satiable dem and for new cap ital. In order to
fill the savings "g a p ” , m em ber banks in the
country as a whole had becom e indebted to th eir
respective Federal R eserve banks to th e am ount
o f nearly $ 1 ,5 0 0 ,0 0 0 ,0 0 0 (the largest volume of
such borrowing since 1921) which in turn was
used to support a m uch larger volum e o f new
loans and investm ents.
T h e exten t to which credit had been inflated
was beginning to cause considerable uneasiness.
I t would hardly have contributed to long-term
econom ic sta b ility if a t th a t ju n ctu re th e Federal
Reserve System had pursued a policy o f exten d
ing central b an k cred it freely enough to perm it
every conceivable dem and to be m et. T h e indus
tria l establishm ent o f th e nation was already
bursting a t th e seam s. T h e situ ation strongly
suggested continued application o f some re stra in t,
perhaps some intensification o f re stra in t, lest b o r
rowing get ou t of hand, w ith adverse consequences
to long-run sta b ility , em ploym ent, and prosperity.
Steps Toward Caution
One of th e first steps to be tak en in the new
y ear 1953, as a m eans o f m aking fu rth er cred it
expansion less a ttra c tiv e , was th e raising o f th e
reserve b an k s’ discount ra te from \%% to 2% a t
approxim ately m id -Jan u ary . T h e higher rate was
more nearly consisten t w ith general m a rk et co n
ditions and it also put th e m ark et on n otice th a t
th e rate o f increase in private indebtedness was
becom ing a m a tter o f increasing concern.
Concurrently the Sy stem also undertook to
neutralize th e inflationary p oten tial o f the return
flow o f currency which custom arily occurs in
Ja n u a ry and F ebru ary . B y disposing o f a sub
stan tial volume o f short-term governm ent securi
ties, th e System succeeded in absorbing an equ iva
lent q u an tity o f m em ber bank reserves which
otherwise could have been used as a basis for
fu rther credit inflation.
M eanw hile there was no dim inution in the
A N EVENTFUL YEAR IN THE M O N EY MARKET
-1 9 5 3 -
*Exclusive of Special Certificates, and of $500,000,000 redeemed on November 9 by use of free gold.
H ighlights
A . Discount R ate (N .Y .) was increased to 2 %
(from 1 % % ) on Jan u ary 16.
B . During first eight weeks of 1953, roughly
$1 billion of currency returned from circu
lation; the reserves thus created were
absorbed by the reduction in Federal
Reserve holdings of governments.
C . On April 8, the Treasury announced plans for
raising §2 billion of new money. The new
30-year 3J<£s were placed on sale on
April 13.
D . The Victory 23^s dipped below 90 on June 1;
other issues also established long-time
lows on or near th at date.
E . Beginning with the first of M ay and extend
ing over a ten-week period, System hold
ings of governments were increased by
nearly $1.2 billion; most of the reserves
F.
G.
H.
I.
thus released were used: (1) to reduce
member bank indebtedness to the reserve
banks, and (2) to meet outflow of currency.
On June 24, it was announced that legal
reserve reauirements would be reduced
by $13^8 billion in the first part of July.
The protracted K orean talks culminated in a
truce agreement on July 26.
From about mid-August to the end of 1953,
System holdings of governments were
enlarged to accom modate the normal
seasonal expansion of: (1) bank loans,
and (2) currency in circulation.
B y December 10, the Victory 2j^s had re
covered all of the first-half-year decline
in prices. Other prime fixed-income secu
rities had also risen appreciably from
the M ay-June lows.
accelerated rate of business activ ity ; in fa c t,
em ploym ent and the physical output of goods
and services established a new all-tim e high
during the first h a lf o f the year.
Treasury Developments
T h e y ear was n ot very old, however, when the
demand for credit was intensified by an untim ely
turn in Federal finances. In com e-tax receipts
during la te M arch and in subsequent weeks fell
appreciably short o f earlier calculations. U ntil
then it had been assumed th a t th e acceleration
o f corporate incom e-tax collections under the
M ills plan would m ake it unnecessary for the
Federal G overnm ent to seek any new funds before
m idyear. B u t now it becam e obvious th a t the
T reasury would have to borrow additional funds
in com petition with all other borrowers, and
several m onths ahead o f original expectations.
In the existing sta te of international affairs,
the T reasu ry could hardly be denied priority.
B u t how could th e Federal R eserve System
smooth th e way for T reasury financing w ithout
giving b oth direct and indirect encouragem ent
to all oth er kinds o f borrowing? T h is dilemma
evoked recollections o f 1927-8-9 when it was
found v irtu ally im possible to prevent the g rav ita
tion of funds into th e speculative m arkets.
Suffice it to say th a t m onetary policy con
tinued to convey an attitu d e o f "n e u tra lity ” in
th a t, despite th e T reasu ry ’s need for funds and
th e strong private demand for capital, th e System
refrained from engaging in expansive open m arket
operations. In April th e T reasu ry undertook to
raise $1,0 0 0 ,0 0 0 ,0 0 0 o f new m oney by offering
the investm en t m ark et a 30-y ear 3 \i% bond.
Sim ultaneously it announced th e inten tion of
seeking another $ 1 ,0 0 0 ,0 0 0 ,0 0 0 , over a period of
tw o or th ree m onths, by the sale of additional
9 1 -day obligations. T h e new pre-em ptions placed
a fu rth er strain on lending institu tions, and
intensified th e com petitive struggle among resid
ual borrowers.
Strain and R elief
All lending in stitu tions began to strive for
greater liq u id ity , for fear o f being unable to m eet
even th e norm al and routine dem and which
m ight be encountered. T h e strain was accen tu
ated by th e efforts o f some borrowers to anticip ate
their needs, before th e cost o f borrowing should
rise still higher.
O
D uring late April and continuing through all
of M a y , in terest rates rose rapidly to th e highest
point in ten or tw enty years, or to put it another
way, bond prices weakened to th e low est level in
a decade or tw o. Sh ort-term rates also were
steadily stiffening, and, for some weeks in la te
spring, the Treasury had to pay around 2 % -2 % %
for 9 1 -day m oney. T h e reaction was m uch
sharper than had been an ticip ated , and th a n was
w arranted by the reserve position o f m em ber
banks.
M eanw hile, in the first week o f M a y , w ithout
abandoning the policy o f m aintaining steady pres
sure against excessive credit expansion in th e
environm ent o f a business boom , th e System had
begun to buy short-term T reasu ry obligations in
th e open m ark et, in order to prevent fu rth er
a ttritio n of m em ber b an k reserves through th e
norm al springtim e outflow of cu rrency, and to
enable m em ber banks to reduce th eir indebtedness
to th e reserve banks. T h e acquisition o f nearly
$1,200,0 00 ,0 0 0 o f sh ort-term governm ent secu ri
ties (over a ten-w eek period beginning April 29)
was roughly enough to neutralize th e outflow o f
currency, and to allow m em ber banks to reduce
th eir indebtedness a t the Fed eral R eserv e ban ks
to very low levels. B y Ju n e 1, sen tim ent in th e
m ark et changed, and bond prices started a rise
which in six weeks recovered m ost o f the AprilM ay decline.
Reserve Requirements
L a te in Ju n e the Sy stem announced th a t, effec
tive early in Ju ly , m em ber bank reserve requ ire
m ents would be lowered b y $ 1 ,1 5 0 ,0 0 0 ,0 0 0 , which
would au tom atically increase th e p o ten tial lend
ing (or investing) ca p a city o f the bank ing stru c
ture by around $ 6 ,0 0 0 ,0 0 0 ,0 0 0 . T h is was th e
m onum ental event o f 1953 in th e m oney m a rk et,
for it released m ore p o ten tial cred it a t one stroke
th an was created b y any six consecutive green
bars in the accom panying ch a rt. Y e t th is m a jo r
credit-easing step actu ally seemed to provide very
little further im petus to bond prices for some
weeks, which suggests th a t no fu rth er ease in
m oney rates was an ticip ated a t a tim e when
business was still so active and th e dem and for
funds so great.
T h e resum ption o f open m ark et purchases in
Septem ber, even though on a com paratively sm all
scale, revealed the intention of th e Sy stem to
provide funds adequate to m eet norm al fall re
quirem ents for cred it, and indicated th a t a decline
in production and em ploym ent would n ot be
exposed to an unnecessarily restrictiv e credit
policy. Although the cost-of-living index was
still creeping upward— a t an alm ost im perceptible
rate — the contem porary scene in la te sum mer
suggested th a t th e danger o f fu rther inflation had
been succeeded by the possibility o f some retren ch
m en t in business a ctiv ity . T h e actu al signing of
th e K o rean T ru ce A greem ent on Ju ly 26 occurred
a t a tim e when some h esitation in business was
becom ing visible in widely scattered spots. (T here
is no tangible evidence th a t th e cessation o f
hostilities was a prim e fa cto r. T h e abnorm al
pace o f th e first h a lf o f th e year probably was
destined to subside sooner or la ter, short of
broad-scale w ar.) B y virtu e o f this second phase
o f open m ark et purchases, enough reserves were
m ade available to m em ber banks so th a t bank
cred it m ight expand by norm al proportions during
th e crop-m oving and fall-buying season, over and
above th e custom ary outflow o f currency and
oth er restrictiv e facto rs such as gold exports.
Abatement of Pressures
T h e volum e o f purchases m ade in th e AugustD ecem ber in terv al was roughly enough to offset
th e attritio n o f reserves stem m ing from the flow
o f m oney in to circulation.
(Som e additional
tem porary accom m odation was accorded to the
m oney m ark et during th e final tw o weeks of
D ecem ber, n o t shown in th e ch a rt, in order to
m inim ize th e d ay-to-d ay drain o f large corporateincom e-tax paym ents as well as for cu stom ary
year-end needs.)
M eanw hile, how ever, business a c tiv ity had b e
gun to recede slightly, borrow ing from com m ercial
banks had failed to com e up to exp ectation s, and
m em ber banks found them selves in a position of
growing ease. T h e ab atem en t o f pressure is re
flected by th e fa c t th a t b y D ecem b er th e price of
V icto ry 2 ^ s had recovered all o f th e loss (and
m ore) Avhich had occurred in th e first h a lf of
th e year.
M ean ing of the Swings
In review , it appears th a t th e decline in bond
prices (the rise in m oney rates) during a t least
BUSINESS LOANS OUTSTANDING
Billions
(W eekly reporting b anks, United States)
of Dollars
Bi||ionj
of Dollars
NOTE: Figures are of the Wednesday nearest end of the month.
th e first four m onths o f th e year was entirely
consistent with th e Federal R eserve S y stem ’s
policy o f restrain t in th e face of a business boom .
T h e fu rth er drop in prices during M a y , however,
occurred a t a tim e when th e System was taking
action to relieve the pressure on the money
m ark et by enabling m em ber banks to reduce their
indebtedness a t th e reserve banks. T h e S y stem ’s
action was also in keeping w ith its avowed o b
je c tiv e of fostering a m onetary clim ate which is
conducive to a high level o f em ploym ent, stab ility
in th e general price level, and a gradually rising
standard o f living.
T h a t u n d e rly in g o b je c tiv e w as u n ch an g ed
throughout 1953. I t was largely the failure of
th e investm ent m ark et to recognize the funda
m entals of th a t doctrine th a t produced th e ex
tre m ity in money rates near m idyear. T h e events
o f 1953 em phasized anew th e im portance o f a
clearly enunciated m onetary policy, as well as a
clear understanding by th e m oney m ark et o f the
longer-range im plications o f such a policy.
JL
i i e f l u c t u a t i o n s o f the money m arket during
1953, and atten d an t measures tak en by the
Federal R eserve System in th e in terest of finan
cial stab ility (as described in th e preceding pages),
produced an im pact upon the operations of banks
in this D istric t, as elsewhere in the nation.
A nxieties and uncertainties, however, did not p re
ve n t the attain m en t o f favorable scores for the
y ear, as m easured by various banking indicators.
D em and deposits a t F ou rth D istric t banks
held above those of 1952 during m ost o f the
year, as m ay be seen from an accom panying ch art.
D uring th e final q u arter, however, the m argin
over year ago was erased. T im e deposits con
tinued to expand throughout m ost o f the year,
reaching new all-tim e highs alm ost each week.
T o ta l debits to dem and deposits, though never
reaching th e all-tim e highs o f D ecem ber 1952,
were generally above th e com parable 1952 m onths.
DEMAND DEPOSITS
(Fourth District w e e k ly reporting banks)
M o st of the proportionately large gains were
recorded in the sm aller centers in th e D istric t.
D uring th e last quarter o f th e year, d eb it a ctiv ity
failed to show the usual seasonal increase. D ep osit
turnover was slightly higher throughout 1953
th an during 1952.
Loans
Loans to business concerns reflected b oth the
strong and the weak aspects of 1953 banking
operations. Such loans m ade by F o u rth D is tric t
banks reached a peak for th e year in M a y , b u t
subsequently showed a persistent decline. T h is
was in con trast to the usual exp ectation th a t
business borrowing would increase during the
la tte r h a lf o f th e year. As th e accom panying ch art
shows, 1949 had been th e la st previous y ear in
which a decline in outstanding business loans
occurred during the second h a lf o f th e year.
(W hile loans in this D is tric t were showing a net
decline, to ta ls for th e U nited S ta te s as a whole
registered a Iess-than-seasonal increase during the
second half.)
M u ch o f the second-half decline in business
loans in this D istrict is ascribable to th e reduced
needs for borrowing on th e p art o f th e m etalproducts m anufacturing group. T h is group has
been paying off debt which was incurred in th e
early days o f th e p o st-K orean defense boom .
Need for working cap ital has been m et in co n
siderable p art from funds supplied in tern ally from
accelerated depreciation allow ances, and from
earnings retained from a high level o f profits.
However, a recent slackening in th e volum e of
orders, com bined w ith large inventories, m ay also
help to explain th e decline in th e needs o f the
m etals-industry group for sh ort-term funds from
banks.
Loans to business groups other th a n m etalsproducts m anufacturers also tended to register
a decline in outstandings, or less-than -season al
expansion, during the la tte r p art o f th e year.
Loans to sales finance com panies, for exam ple,
posted an ou tright decline. T h e usual seasonal
increase in borrowing for w orking ca p ita l and
inventory purposes failed to ta k e place among
INVESTMENTS
Millions
of Dollars
(Fourth district w e e kly reporting banks)
Millions
of Dollars
such groups as food, liquor and to bacco m anu
factu rers, com m odity dealers, and retail and
wholesale trad e.
R eal-e state loans and consum er loans, by con
tra s t w ith business loans, continued to clim b
throughout th e year 1953, although th e pace of
expansion in outstanding consum er loans slack
ened considerably during th e la tte r p a rt o f the
year. O utstanding consum er loans m ade directly
by banks to individuals for purchases of autos and
durable goods declined slightly in th e closing
m onths o f the y ear, while purchases o f instalm ent
paper from dealers continued a t relatively high
levels.
Investments
T o ta l investm ents held b y F o u rth D istrict
banks tended to decline during th e first h a lf o f
th e year, as banks sought to m ain tain th eir
B U S IN E S S , R E A L ESTATE A N D C O N S U M E R L O A N S
Millions of Dollars
(Fourth district reporting banks)
Millions of Dollars
reserve positions while th e relative supply of
cred it was tightening. A fter Ju n e , however, bank
portfolios o f short-term T reasu ry securities ex
panded rapidly to th e highest levels of the postw ar
period. (See ch a rt.) Holdings o f T reasury bonds,
which had declined throughout m ost of th e year,
showed a pickup in the final q u a rte r— a develop
m ent associated in p art w ith b an k s’ desires to
m aintain earnings in th e face of a slackening
dem and for business loans.
S u b stan tial p articip ation b y F ou rth D istric t
banks in the financing o f public p ro jects o f sta te
and local governm ents took place in 1953. D uring
the second h alf, banks in th e sm aller centers
reported large increases in holdings o f this type
o f security.
slowing effects of the 1952 steel strike, thu s reflect
ing a partial tran sfer o f business from one calendar
y ear to the next. N onetheless, th e year-to -y ear
increases for the m ost p a rt represented new
ground gained.
E q u ally im portan t as th e y ear’s to ta l, how ever,
is the fa ct th a t relatively greater stren gth ap
peared during the first h a lf o f the y ear, while in
th e second h a lf th e direction of m ovem ent was
generally downward. A t th e close o f 1953 it was
apparent th a t some sort o f read ju stm en t was in
process. Business opinions differed widely as to
w hether th e m agnitude o f change would be kept
w ithin lim its even narrower th an those o f the
very mild 1949 read ju stm en t, or w hether a more
serious recession was in prospect.
"W n
ith in
th e
Fou rth Federal R eserve D istrict
is produced m ore than tw o-fifths of th e n ation ’s
steel, nearly tw o-fifths o f the n ation ’s rubber
tires, about one-fifth o f th e n ation ’s m achinery
and fabricated m etal products, and somewhat
m ore than one-tenth o f th e n ation ’s tran sp o rta
tion equipm ent.
T h e year 1953, tak en in its en tirety , was one
o f great a ctiv ity and general prosperity for indus
tries such as these, b oth on a nationw ide scale
and in this D istrict. New production records for
th e year were scored in m any instances. I t is
tru e th a t th e gains from the previous y ear to
some exten t represented a catching up from the
Steel
FIFTEEN YEARS o f STEEL PRODUCTION
Millions
of Net Tons
1501----------
In g o ts
and
s te e l
fo r
c a s t in g s ,
U . S. to ta l
Millions
of Net Tons
1150
125
125
PRODUCTION
100
CAPACITY
|
1 ,
TOO
1938 1939 1940 1941 1942 1943 1944 1945 1944 1947 1948 1949 1950 1951 1952 1953
T h e n ation’s steel furnaces during 1953 poured
a record tonnage o f steel ingots and steel for
castin g, am ounting to ab ou t 112 m illion tons.
Such an outpouring topped th a t o f strik e-torn
1952 b y 20% , and b ea t th e 1951 record o f 105.1
m illion tons b y nearly 7% .
T h e transition to a b u yer’s m ark et in steel was
accom plished rath er sm oothly during th e year,
and w ithout the sharp b reak in production rates
th a t has characterized sim ilar periods in other
years. From a first-quarter rate o f 100% of
cap acity , th e industry drifted downward to 99%
in the second quarter, 9 3 % in th e th ird period,
and to an estim ated 88% in th e final q u arter.
D urin g D ecem ber, the percentage fell to about
80% o f cap acity, due largely to a very sharp drop
in th e final two weeks o f th e year.
As buyers gained th e upper hand in th e second
h a lf o f the year, expensive conversion deals were
abandoned where possible, and prem ium -price
producers brou ght th eir charges in to line w ith
com petitors. In addition, m a jo r steel com panies
announced th a t freight absorption would be p ra c
ticed on selected item s to m eet p articu lar com
p etitiv e situations. B uyers began to re stric t pu r
chases to mills located m ost fav orab ly w ith regard
to freight charges, and also began to in sist on
close observance o f co n tra ct q u ality specifications.
U. S. TIRE PRODUCTION
Millions
of Units
Millions
of Units
seller’s m arket. T h e switch from a seller’s to a
buyer’s m arket was heralded early in the year by
rapidly m ounting new-car inventories. P a rt of
the accum ulation took the form of replenishing
stocks which had been depleted during last y ear’s
steel strike. P a rt, however, was involuntary,
leaving a large num ber of new cars on hand as
the 1953-m odel year drew to a close. Although
model changeovers curtailed production during
the final m onths o f the year, thus easing the
upward pressure on inventories, sales efforts had
to be greatly intensified in order to clear dealer
lots for the 1954 models.
D espite the added sales effort needed to move
cars in th e closing m onths, 1953 proved a very
satisfactory year by all past standards. In term s
of both production and sales, it ranks second only
to 1950. B y year-end, about 6.1 million passenger
cars had rolled off th e assem bly lines as com pared
with 1950’s 6.7 m illion units. Sales (registrations)
for th e year totaled about 5.6 million cars as
against 6.3 m illion in 1950.
Rubber Tires
T o ta l tire production in 1953 established a new
record, b u t sales did n ot quite measure up to the
1950 boom to ta l o f alm ost 100 m illion units. T h e
big expansion in autom obile assem blies was the
ch ief stim ulan t o f th e rubber industry. F o r the
first ten m onths o f th e year, original equipm ent
sales o f passenger-car casings were running 49%
ahead o f th e com parable 1952 >period, „'(w hile
replacem ent sales during th e same period ju s t
barely exceeded year-ago to ta ls. Production and
shipm ents o f tru ck and bus tires for the same
interval were close to their 1952 levels, b u t lagged
behind a series o f other postw ar years.
M an u factu rers cu t b ack production in late
spring a fter tire inventories had soared to their
highest level in 24 years. T h is action, together
with continued good sales, brought stocks of
passenger-car casings down to 10.5 m illion units
by th e end of Septem ber, or some 18% below the
m id-year peak. How ever, a rise in production in
excess o f th a t required to m eet a spurt in auto
ou tpu t halted th e inventory ad ju stm en t during
O ctober and brought stocks to 10.9 m illion ca s
ings, alm ost 33% above the year-ago level.
Som e reduction in em ploym ent in Ohio rubber
factories occurred during the final quarter of the
year, in con trast to the fourth q u arter o f 1952
when the industry was gaining m om entum in
T h e n et result o f such developm ents has been
lower steel costs to consum ing industries, and a
brisk com petitive fight for business.
S teel producers in th e F o u rth D is tric t fe lt such
changes in m ark et conditions, and operations in
th e D is trict paralleled ra th er closely th e nation al
rate. Prod uction was m aintained a t b e tte r than
average rates, how ever, in th e W heeling area and
in th e C leveland-Lorain area. O perations in
P ittsb u rg h and Y oungstow n were about on a par
w ith th e nation al ra te , b u t th e Ohio R iv er area
slackened noticeably in th e fall o f th e year.
L ak e iron ore shippers— favored by an early
s ta rt, an enlarged and faster fleet, and very good
shipping w eather— broke the 1942 annual record
o f 92 million tons by early N ovem ber. B y the
end o f the season, close to 96 m illion tons had
been moved from Upper L a k e ports.
A lltO S
A utom obile p arts, tru ck s, and oth er form s o f
tran sp ortation equipm ent m ake up an im p ortan t
segm ent o f the F o u rth D is tr ic t’s indu strial p attern .
F o r the autom obile industry throughout the
n ation , 1953 m arked th e end o f th e postw ar
[11]
preparation for th e production race slated for
early 1953.
M achinery and Appliances
Production o f m achinery held to very high
levels during m ost o f th e year, w ith some tapering
off observable in th e autum n m onths.
(See
accom panying ch a rt.) New orders dropped earlier
and more rapidly th an production in m any lines.
Sharing in the recen tly reduced a ctiv ity in the
m achinery lines were producers of agricultural
m achinery and tra cto rs, and m anufacturers o f
household m achinery. T o a lesser exten t, some
SOME HEAVY INDUSTRY SCORES
(Index of Physical Volum e of Production)
(1947-49 Average=100)
■
■
(1947-49 Average=100)
I
I . S. totals, sea: onally adjuste
T iANSPORTAT O N — ► I/-'
EQUIPMEN r
^ J
M ACHINE tr
xA
1948
1949
1950
1951
1952
1953
downward m ovem ent was experienced by pro
ducers of construction equipm ent, engines and
turbines, and general industrial m achinery.
E arlier in the year, a t a tim e when m ost m a
chinery lines were holding firm, producers of
m ajor household appliances and o f radio and
television sets found it necessary to effect sharp
production cu tbacks because o f m ounting inven
tories. A bout m idyear, stocks in these lines were
receding, b u t apparently th e read ju stm en t was
n o t sufficient to prevent some fu rth er decline in
production rates tow ard the end o f th e year.
General Econom ic Indicators
T h e industries ju s t reviewed, which are o f
ou tstand in g im portance to this D is tr ic t, were n o t
exceptional in th eir showing o f b risk a c tiv ity
during 1953, coupled w ith signs o f w eakening
tow ard year-end. T h e physical volum e o f in d u s
tria l production scored an over-all 7% gain over
th e previous year, along w ith some observable
slackening since Ju ly . U nem ploym ent for th e
m ost p art was a t record low levels, and a t no
tim e con stitu ted an appreciable problem ; n ev er
theless, it was creeping up during th e la tte r
p art o f th e year.
T h e G ross N ation al P rod u ct, an estim ated
m easure o f th e dollar value o f all goods and
services cu rrently produced in th e n ation, in
creased b y about 5% over 1952, although b o th
th ird and fo u rth -q u arter estim ates Avere lower
th an those for th e first h alf.
R ela tiv e price sta b ility was an ou tstand ing
featu re o f th e year 1953, w ith th e im p ortan t
exception o f the agricultural sector where th e
downward tend ency o f the tw o previous years p er
sisted. W holesale prices in the aggregate showed
little change; the consum ers’ price index, due
m ainly to ren t and service com ponents, edged up
slightly a fter a tem porary weakening in the early
m onths o f th e y ear; basic com m odity prices
showed no persistent tren d throughout th e y ear.
W hereas la st y ear’s Annual R ep o rt noted a
tu rnabou t in th e inventory situation in th e d irec
tion o f renewed accum ulation o f stocks, an oppo
site sh ift m u st be noted for 1953. T h e ra te o f
over-all inventory accum ulation showed m arked
signs o f slackening during the th ird q u arter o f
th e year, and by the final quarter a n e t reduction
was clearly approaching, if, indeed, it had n ot
already been reached. Such a developm ent played
an im p ortant role in the recent reduction o f Gross
N ation al P rod u ct and other general m easures of
activ ity , as well as in th e affairs o f the specific
industry groups already noted. Its im plications
for the 1954 outlook were in th e forefron t o f
business discussion a t year-end.
J ^ a r m in g
e n t e rp ris e
in the F ou rth Fed eral
R eserv e D is tr ic t, although perhaps it holds th e
spotlight o f atte n tio n less frequently th an th e
D is tr ic t’s heavy in d u stry , carries a very strong
weight in th e n a tio n ’s agriculture. Ohio, fo r
exam ple, w hich is the one sta te com pletely w ithin
th e D is tric t, ranks am ong th e top seven sta tes
o f th e nation w ith respect to fifteen or m ore
m ajo r farm com m odities, including dairy cow
num bers and th e production o f hogs, m ilk, eggs,
corn, w inter w heat, and soybeans.
Ohio stands
am ong th e top dozen sta tes in th e production o f
m any other principal farm products such as h ay ,
rye, oats, sheep and lam bs, and apples.
In w estern P enn sy lvan ia, dairy operations are
sim ilar in scale and q u ality to those o f n o rth
eastern Ohio. T h e eastern section o f K en tu ck y ,
which also falls w ithin th e F ou rth D istrict and
which includes m ost o f the fam ous bluegrass area,
accounts for nearly one-third o f th e n a tio n ’s
growth of burley tobacco.
H ere, as in th e nation, 1953 fell sh ort o f being
a banner year for agriculture. F arm prices con
tinued the downward trend which prevailed
throughout 1952 and m ost o f 1951. O u tp u t was
m aintained a t a very high level, despite drought
conditions in some areas. N et farm incom e de
clined fu rther to a point about one-fourth below
th e postw ar record of 1947. T o ta l indebtedness
o f farm ers rose m oderately. Som e letup in farm
buying of industrial goods was observed.
T h e fa cto r m ost im p ortant in sustaining the
farm econom y was the continued growth in con
sum er incom e which supported a strong dom estic
dem and for food. Foreign dem and, on th e other
hand, fell sharply during 1952-53 from th e un
usually high points o f the previous fiscal period.
E xa m p le of Contour F a rm in g in the Fourth District
Consolidated F igu res fo r Main
P H Y S IC A L Q U A N T IT IES
C H EC K S PR O C E SS ED
Government
All other
COIN R E C E IV E D
COIN P A ID OUT
COIN W R A P P E D
C U R R E N C Y R E C E IV E D
C U R R E N C Y PA ID OUT
D ISCO U N TS AND A D VA N CES
D O LLA R AM O UN TS
1953
195 2
1953
1952
252,970,000
(number)
35,307,000
(number)
217,664,000
(number)
1,075,560,000
(pieces)
1,051,897,000
(pieces)
19,017,000
(rolls)
434,743,000
(pieces)
432,338,000
(pieces)
1,887
(advances)
240,741,000
(number)
35,022,000
(number)
205,719,000
(number)
989,174,000
(pieces)
1,002,853,000
(pieces)
15,482,000
(rolls)
408,844,000
(pieces)
405,752,000
(pieces)
1,444
(advances)
$102,737,414,000
$92,874,691,000
21,208,734,000
17,080,353,000
81,528,680,000
75,794,338,000
84,528,000
74,805,000
83,273,000
74,457,000
67,681,000
56,503,000
2,780,266,000
2,609,358,000
2,760,107,000
2,598,570,000
9,306,953,000
7,266,815,000
394,740
(pieces)
581,056
(pieces)
318,304
(pieces)
554,651
(pieces)
43,638,089,000
42,972,545,000
27,667,000
(number}
28,238,000
(number)
471,723,000
8,128,000
(pieces)
7,733,000
(pieces)
208,116
(pieces)
219,020
(pieces)
S A F E K E E P IN G :
Securities deposited and withdrawn
Coupons detached and collected
PO STA L M O N E Y O R D E R S
P R O C ESSED
O R D IN A R Y M A IL,
incoming and outgoing
R E G IS T E R E D M A IL ,
incoming and outgoing
growth in the volume o f operations
took place during 1953 for m ost departm ents of
the b an k , as indicated by the table and bar ch art
shown above. Increases over the previous year
occurred b oth in term s o f physical quantities of
item s handled and dollar am ounts; in numerous
cases, although n o t uniform ly so, the rise in
dollar volume was som ewhat larger than the gain
in physical volume.
T h e processing o f checks, and o f incoming and
-----
458,849,000
-----
outgoing coin and currency, ran to m oderately
larger to tals than the very high volume figures
of 1952. A substantial rate of gain is observed
for the dollar volume o f governm ent checks
handled, a ttrib u ta b le in large p art to a change
in the disbursing arrangem ents o f th e U nited
S ta tes N avy. T h e wrapping of coin continued
to show a m arked increase in ra te o f a c tiv ity ,
due to the popularity of this service w ith the
com m ercial banks.
J L u r t iie u
-----
[14]
Office and two Branches
PERCENTAGE CHANGE FROM 1952 TO 1953
Physical Quantities
-1 0
-5
0
Dollar Amounts
+5 + 10 + 15+ 20
im ijm i mi|im|!iii|im|
-1 0
-5
0
+ 5 + 10 + 15+ 20
jm ijiin ll!l]lll|JIIII|llll|
CH ECK S PRO CESSED
I
l
Government
c
All other
a
CO IN R E C E IV E D
CO IN P A ID O U T
C O IN W R A P P E D
I I
C U R R E N C Y R E C E IV E D
C U R R E N C Y P A ID OUT
D ISCO U N TS A N D A D V A N CES
S A F E K E E P IN G :
■
l
Securities deposited and withdrawn
Coupons detached and collected
P O STA L M O N E Y O R D E R S
PRO CESSED
■
■
O R D IN A R Y M A IL ,
incoming and outgoing
R E G IS T E R E D M A IL ,
incoming and outgoing
I
n
_
■■■
T h e su b stan tial increase in volume o f discounts
and advances reflects prim arily the increased use
which m em ber b ank s m ade of th e borrowing
privilege during the period o f relatively tig h t
m oney during th e first h a lf o f 1953.
T h e volume o f registered mail handled is one
o f th e few activ ities which scored a reduced
volum e during th e year. T h is is m ainly because
increased shipm ents o f currency and coin to and
from m em ber banks are now handled by arm ored-
car delivery; th e la tte r operations are n ot re
flected in the tab le and ch a rt above.
T h e inform ation depicted above is fa r from
com plete in its representation o f th e im p ortant
everyday operations o f the bank and its branches.
Among th e significant phases om itted are the
handling o f savings bonds and o f oth er T reasu ry
issues b y the F iscal Agency departm ent o f the
bank. Som e inform ation on the la tte r, how ever,
is provided elsewhere in this R ep ort.
jr*r
o c a t i o n
FOURTHIDISTRICT;
C ® 33BC m ®
K EY:
□ Group 1 hanks, as classified by the Board of
Governors of the Federal Reserve System, com
prising banks with a combined capital and
surplus of $2,000,000 or more.
• Group 2 banks: capital and surplus of more
than $300,000 and less than $2,000,000.
O Group 3 banks: capital and surplus of $300,000
or less.
( ) Indicates that the specified number of branch
offices of some member bank or banks is located
a t the city or town indicated; the main office
may he elsewhere.
URIN G T H E year 1953, num erous m em ber b an k s, because o f grow th, shifted
from the group 3 classification to group 2. In addition, a num ber o f branch
offices were acquired by m em ber banks — som etim es in the form o f purchase
or m erger, and som etim es in the form o f newly established offices.
D
T h e accom panying m ap brings the picture up to d ate as o f D ecem b er 15,
1953, showing the location of all m em ber banks o f the F o u rth D is tric t with
num ber o f b ran ch offices indicated in parentheses.
_/V
n e w
le a s e d -w ir e
system o f com m unica
tion for the entire Federal R eserve System was
put into operation during Ju ly , 1953.
I t is an
autom atic teletypew riter system , which operates
on duplex lines a t a speed o f 75 words per m inute
as contrasted with th e 60-w ord speed o f the
former system .
T h e netw ork is operated under co n tra ct with
the long lines d epartm ent o f the A m erican T e le
phone and Telegraph Com pany. I t links together
46 stations in 37 cities throughout the cou ntry,
including th e 12 Federal Reserve ban ks and their
24 branches, the B oard o f G overnors o f the
Federal
Reserve
System
in
W ashington,
the
United S tate s Treasury offices in W ashington
and Chicago, and the W ashington offices o f the
R econstruction
Finance
Corporation
and
the
Com m odity Credit Corporation.
Inserting tape fo r automatic sending
D ecision to adopt this highly modern system
o f teletype com m unication grew ou t o f an ex
tended study ol th e com m unications problem o f
th e
Federal R eserve System
which was co n
ducted by a subcom m ittee o f the S y stem ’s C o n
ference o f Presidents.
T ech nical developm ent
work was carried out b y the B ell Telephone
L aboratories.
One o f the im p ortant advantages o f th e change
for this bank
is th a t messages betw een the
C incinnati and P ittsb u rg h branches and other
parts o f the System now go direct to destination
rath er than being m anually relayed a t the M ain
Office.
T h is
arrangem ent n ot only
expedites
service a t the branches, b u t reduces work load
a t th e M ain Office.
A fully au tom atic switching center for the
Preparing tape
entire network is located a t the Federal R eserve
[18]
B an k o f R ichm ond .
T h e center is equipped so
th a t m ultiple-address and group-code messages
are d istributed from a single transm ission. T h e
sw itching cen ter is also equipped with an in tercep t
m achine w hich picks up m isdirected messages,
and, in addition, stores up any messages scheduled
for an "o u t-o f-se rv ice ” line, releasing them only
when the line is able to receiv e them .
T h e processes involved in sending and receiv
ing m essages over th e new system are reduced
to bed-rock sim plicity, as m ay be seen from the
accom panying photos. T o send a m essage, the op
erator types it ou t on a special m achine, using
two code letters for office o f d estination and
special fu nctional codes for guiding the m ech a
Automatic snitching ccnter, Federal Reserve Bank of Richmond
nism . T h e au to m atic closing o f a circu it by the
sw itching cen ter then sends th e impulses on their
w ay, via R ich m ond , for alm ost instantaneous
suitable for im m ediate reading or delivery to
reception a t th e other end.
the individual recipient.
Incom ing messages
are pulled from th e receiving m achine in a form
A bout 400 messages, averaging 22 words in
length, are handled daily a t the M ain Office
alone.
A considerable num ber o f the messages
involve telegraphic transfer o f funds for com
m ercial banks which are m em bers of the Federal
R eserve System .
T h is im portant function o f a
R eserve B a n k — more fam iliar to bankers than
to the general public— was described as follows
by President W ilbur Fulton on the occasion of
the installation o f the new system :
" I t works this way.
L e t’s say a custom er of
a m em ber bank in the Fou rth Federal Reserve
D istrict w ants to get $5,000 to San Francisco,
and fa s t, to com plete a business deal.
would ask us to transfer the funds.
His bank
We would
deduct the $5,000 from the m em ber b a n k ’s a c
count with us and wire the San Francisco 'F e d ’
to credit it to the reserve account of the proper
bank in th a t city , on beh alf o f the person or co r
poration designated. T h e whole transaction m ight
take less than h alf an hour.”
Reading Incoming Message
[19]
e l p i n g
th e
T r e a s u r y
Jthe part played by this bank and other Federal
Reserve banks in assisting the Treasury Department in the distribution of new secu
rities is indicated by the accompanying illustrations. Refunding operations, which
are in many respects similar to the processes involved in a new-money issue as
depicted here, continued to be very important in 1953, and, in fact, bulked much
larger in dollar volume than did the new-money issues.
T reasu ry officials determ ine th a t pu blic debt
financing will be required w ithin 30 to 45 days to
m eet cash requirem ents o f th e G overnm ent.
T reasu ry officials m eet w ith representatives of
various banking, investm ent, savings, insurance
and oth er groups to determ ine th e am ount of
funds available for investm ent under varying
term s and conditions.
B ased on inform ation secured in th e con
ferences concerning the present m oney and secu
rities m ark et conditions, th e T reasu ry m akes a
final determ ination as to the am ount to be offered,
the ra te o f in terest, and the m atu rity .
T h e T reasu ry D ep artm en t th en in stru cts the
tw elve Federal Reserve banks to prepare, as fiscal
agents o f the U nited S ta te s, subscription forms
and other necessary inform ation regarding the
new offering.
F E D E
R E S E R
B Al
T h is bank (along with other Fed eral R eserve
banks) forwards to all banking institu tion s and
others concerned the announcem ent, regulations,
form s, e tc ., covering the new issue.
[20]
F l o a t
a
B o n d
Is s u e
.
.
.
.
B an k in g in stitu tion s forw ard subscriptions for
the new issue for their own accou nts and the
accounts o f their custom ers; subscriptions m ay
be sen t to the M ain Office a t C leveland, or to the
C incinnati or P ittsb u rg h branches.
R eserve banks and branches advise the Treasu ry
D ep artm en t o f am ounts o f subscriptions (usu
ally by types o f investors) th a t wrere received by
deadline for subscriptions.
LJUfSlIiilli &
T h e T reasury determ ines the basis o f allotm ent
among the various types o f purchasers, and ad
vises Reserve banks o f the decision.
B ankin g institu tions and others are advised o f
the allotm ent basis and asked to rem it for am ount
of subscriptions which were accepted.
10
11
^ W h e n a bank makes paym ent for securities by credit to its
Treasury T a x and Loan Account, its present cash position is not
affected by the purchase of the securities. Shortly thereafter,
however, the Treasury D epartm ent starts making calls against the
T a x and Loan Account balances of the Special Depositaries (through
the Federal Reserve Bank acting as agent) in order to replenish
B an k s m ake paym ent for subscriptions for their
own account and the account o f their custom ers,
by m eans of: (a) credit to T reasu ry T a x and Loan
A ccount, provided they are qualified as Special
D epositaries*l), or (b) charges to their reserve
balances a t this bank, or (c) drafts drawn on their
correspondent.
T his bank and its branches effect delivery o f
the securities according to instructions o f the
subscribers.
its cash. Payments made at such times by the Special Depositaries
to the Federal Reserve Bank, for the account of the I reasurer of
the United States, have the effect of reducing the reserves of the
depositary hanks. The use of this mechanism relieves the shock of
immediate withdrawals at the time of security purchases.
h e r e is no good reason why every ragged
dollar b ill spotted b y a b an k in S e a ttle or Phoenix
or B oston or M iam i as being unfit for fu rther
circulation should be shipped all the way to
W ashington for verification and destruction, the
Treasury has decided.”
W ith this statem en t in Ju ly o f 1953, the
Treasury D ep artm en t launched a new procedure
for the destruction o f worn-out U nited S ta tes
currency — a procedure which had previously
been worked out in consultation with the Federal
Reserve banks, and which calls for the actu al
destruction of the bills a t th e R eserve banks
instead o f a t the T reasu ry in W ashington. R e
duced shipping costs alone will result in savings
o f substantial sums.
T h e new arrangem ent, which went into effect
a t m idyear a t this bank and other Federal
R eserve banks, applies only to U .S . notes and
Verification
silver certificates. Procedures for disposing o f
unfit Fed eral R eserve N otes, as established by
law, rem ain unchanged.
H ere are th e principal steps in th e operation
as it is now conducted a t this b an k : C urrency
deposited by com m ercial banks is sorted, as h ere
tofore, by the Cash departm ent. B ills unfit for
fu rther circulation are segregated. (T h e tests for
fitness are n o t changed under the new procedure.)
T h e unfit bills which ta k e th e form o f U . S. notes
or silver certificates are then counted and strapped
in units o f 100 each (according to denom ination)
with ten "s tr a p s ” com bined to m ake a bundle.
C an cellation is effected by m achine-punching four
holes in each bill, with the holes shaped in the
form of a letter " D ” to designate the F ou rth
D istrict.
Sorting
A fter th e Cash departm ent has taken the steps
ju s t enum erated, the bundles of cancelled bills are
charged to the F iscal Agency departm ent o f this
b an k as representative o f the U .S . Treasury
D ep artm en t.
T h e F isca l Agency d epartm ent
m akes a proof and verification o f the unfit cu r
rency in accordance with instruction s outlined
by the T reasu ry D ep artm ent.
F in ally , th e bundles are placed in an incinerator
which has been specially constructed for the
purpose (see photo) and are destroyed under a
h e at o f 2 2 0 0 degrees F ah ren h eit. T h e incinerator
is gas fired, equipped w ith air-pressure blower,
dual lock controls for cage and incinerator room,
and other p ro tectiv e featu res such as screens to
prevent pieces going up th e stack . A fter the
burning, all ash is carefu lly exam ined for com
pleteness o f destruction. Special supervisory pro
cedures and personnel arrangem ents are geared
to th e natu re o f the ta sk . W hen the destruction
has been com pleted, th e accou nt o f the T reasurer
o f th e U n ited S ta te s is debited for th e am ount
o f currency destroyed.
T h e large volum es o f unfit currency which
regularly go up in sm oke m ay be judged b y the
fa c t th a t a t this b an k , alone, an average of about
7 ,0 00,000 bills o f varying denom inations were
destroyed each m onth during the second h a lf of
1953. T h e dollar to tal o f bills destroyed am ounted
to about $10,0 0 0 ,0 0 0 per m onth. O ne-dollar bills
predom inate in th e m ixture th a t goes to the
fu rnace; th a t is not only because of th e im por
tan ce o f th e one-dollar bill in general circulation,
b u t also because this denom ination wears out
faster. A ccording to T reasu ry estim ates, a onedollar bill has an average life o f about 10 m onths.
M ore th an a billion o f them are ordinarily in
general circulation.
In the F ire
Cutting Federal Reserve Notes
T h e procedure for destruction of unfit Federal
R eserve N otes has remained unchanged, as m en
tioned earlier. T h e sorting out, counting, and
cancelling o f unfit Federal Reserve N otes is done
a t the Federal R eserve B an k by a process sim ilar
to th a t already noted for U nited S ta te s notes or
silver certificates, but from th a t point forward,
procedures differ. In the case o f Federal Reserve
N otes, the unfit bills which have been punched
with four holes are then cu t lengthwise into two
equal parts. (See photo.) T h e halves are shipped
on different days to the T reasury in W ashington,
where they are verified and then destroyed by
•incineration.
Altogether, the retirem ent o f paper currency is
a function alm ost as im portan t as its issuance.
Security and efficiency o f operations are required,
and proper tim ing of the elim ination o f unfit bills
from circulation is im portant. I t m ay well be
im agined th a t the conduct o f everyday business
would be seriously impeded if dollar bills were
perm itted to reach a stage where they would
disintegrate in the hand or in the w allet. R e fer
ence here is to the physical aspect, n o t to the
problem of the buying power o f dollar bills.
[23]
S
O
o n
M
E
a n d
A
C
T
o f f
I V
t h e
I T
I E
j o b
S
. . .
On these two pages will be seen a few o f the
activities which take place at the Main Office
and at the Pittsburgh and Cincinnati Branches.
Left-hand page refers to operations on duty.
Right-hand page includes glimpses o f social or
leisure-time proceedings.
VC
o m p a r a t iv e
s t a t e m e n t
\o
f
ITIO N
cond
D cccm licr 31, 1953, a n d D e ccm licr 31^ 1952
j
!
ASSETS
D ec. 31, 1952
D ec. 3 1 , 1953
§1,770,513,128
82.246,914
Redemption fund for Federal Reserve n otes....................................................................
31,416,634,734
85,474,810
-
1,532,109,544
e s e r v e s ...................................................................
1,852,760,042
24,612,955
21,490,858
C a s h ................................................................................................................................
1,877,372,997
1,553,600,402
2,655,000
4,184,000
220,398,000
493,760,000
1,125,940,000
309,094,000
74,064,000
498,692,000
1,374,493,000
451,402,000
T o t a l U. S . G o v e r n m e n t S e c u r i t i e s ............................................................. \
2,149,192,000
2,399,101,000
T
2,151,847,000
2,403,285,000
T
T
otal
otal
G old C e r t if ic a t e R
U. S. Government securities:
Bills........................................................................................................................................... •
Certificates............................................................................................................................. [
otal
L oans
and
S e c u r i t i e s ...................................................................................
Federal Reserve notes of other banks.................................................................................
Uncollected cash item s...............................................................................................................
Bank premises................................................................................................................................ j
Other assets.....................................................................................................................................
T
otal
$4,477,148,283
A s s e t s ...........................................................................................................................
12,312,000
383,176,806
4,745,838
15,735,369
13,707,500
416,386,228
5,288,513
12,546,045 ’
i
§4,372,855,415
L IA B IL IT IE S
Federal Reserve notes.................................................................................................................|
§2,463,794,755
82,410,657,455
Deposits:
j
Member hank— reserve accounts................................................................................. j
U. S. Treasurer— general accou nt................................................................................ j
Foreign.................................................................................................................................... I
Other deposits.......................................................................................................................■
1,533,769,067.
38,382,198
37,616,400
14,502,122
1,497,699,030
15,316,010
48,162,000
11,269,501
T o t a l D e p o s i t s .....................................................................................................................>
1,624,299,787
1,572,446,541
Deferred availability cash item s............................................................................................
Other liabilities............................................................................................................................. j
293,806,191
1,355,581
299,245,872
1,431,138
T o t a l L i a b i l i t i e s ................................................................................................j
4,383,256,314
4,283,781,006
25,409,650
. . 57,647,949
1,005,665
9,828,705
24,214,800
54,064,650
1,005,665
9,789,294
84,477,148,283
§4,372,855,415
2,201,754
748,100
1,820,876
750,500
C A P IT A L A C C O U N T S
i
Capital paid in..................................................................................
Surplus (Section 7 ) ..........................................................................
Surplus (Section 13b ).....................................................................
Other capital accounts...................................................................
T
otal
L ia b il it ie s
and
C a p it a l A c c o u n t s .
Contingent liability on acceptances purchased for foreign correspondents.
Industrial loan com m itm ents........................................................................................
26
OM PARISON
a
OF
EARN IN GS
AND
EXPENSES
FOB TIIE YEARS 193'! AND 1952
1952
1953
■
$
Earnings.
Expenses.
47,470,927
10,154,418
S
44,884,258
9,492,114
37,316,509
35,392,144
184,975
14,693
188,345
27,210
......................................
199,668
215,555
Deductions from N et E arn in g s...........................................................
161,498
5,553
N et additions...............................................................................................
Transferred to reserves for contingencies........................................
Paid U. S. Treasury (interest on F . R . n otes)..............................
38,170
39,472
32,249,472
210,002
36,768
30,743,128
N et earnings after reserves and payments to U. S. Treasury.
Dividends paid............................................................................................
5,065,735
1,482,436
4,822,250
1,406,069
N
A d d it io n s
E
et
to
N
a r n in g s .
et
E
a r n in g s :
Profit on U. S. Government securities sold (n e t)...............
All o th er................................................................................................
T
o tal
A d d i t i o n s ...............................
Transferred to surplus (Section 7 ) .....................................................
$
3,583,299
$
3,416,181
W e a r e proud o f th e statu re o f men who
have been tak en into th e n ation al scene from the
states in th e F ou rth F ed eral R eserve D is tric t.
Federal R eserve B a n k o f Cleveland was sig
nally honored when R a y M . G idney, president
o f this bank from Septem ber 16, 1944, was p er
suaded to accep t the post o f C om ptroller o f th e
C urrency, which he did on April 16, 1953.
T h e appointm ent was highly gratifying to
bankers throughout th e U nited S ta te s, for it
placed in th is responsible office a m an well know n
am ong bankers and one whose business life has
been spent in com m ercial banks and w ith th e
F ed eral R eserve System .
His understanding o f
th e problem s o f banks and bankers is broad and
p ractical. W e, who have worked w ith him , know
th a t his ad m inistration will add to th e high
prestige o f th e Office o f T h e C om ptroller o f th e
Currency.
Ray M . Gidney, president • September 16, 1944 — April 16, 1953
Mr. Fulton
Mr. Thompson
o f
W ilbur D . F u lto n as P resi
dent o f this b a n k , to succeed R a y M . Gidney,
was m ade on M a y 14, 1953, by the Board of
D irecto rs and approved by th e B oard of G ov er
nors o f th e Fed eral R eserv e Sy stem . T h is was
th e high spot o f a y ear o f executive changes,
some o f w hich were interlocked w ith th e change
in th e presidency.
As of Ja n u a ry 1, 1953, M r. F u lto n had been
nam ed F irs t V ice P resid ent to succeed W illiam
H . F letch er, who had retired after 35 years with
this b an k. M r. F u lto n ’s previous career in b a n k
ing had included 35 years o f service, nearly 20 of
which had been a t this b an k . His post, im m edi
ately prior to appointm en t as F irs t V ice President,
had been th a t o f V ice Presid ent in charge of the
C in cin n ati B ra n ch .
As o f Ja n u a ry 1, also, R og er R . Clouse, form erly
V ice Presid ent, was nam ed V ice President and
S ecretary , and H arold E . J . Sm ith was appointed
V ice P resid ent.
M r. G idney’s resignation as P resid ent occurred
on April 16. A bout a m onth la ter, M r. F u lto n ’s
appointm ent as P resid ent was announced. Sim ul
taneou sly, D onald S. Thom pson was nam ed F irs t
V ice President.
M r. Thom pson had previously held the post
o f V ice P resid en t in charge of R esearch. His
career as an econom ist had included service with
several governm ental and private research agen
cies as well as with th e B oard o f Governors o f
th e Federal R eserve System .
M erle H ostetler was nam ed D irecto r o f R e
search, as o f Ju n e 11, to tak e over M r. T h o m p
son’s form er duties. M r. H ostetler, who had
served 10 years with this b an k , had previously
been M anager o f the R esearch D ep artm en t, and
then A ssistant V ice President.
R ich ard G . Johnson was named a t the Ju ly
m eeting of the B oard of D irectors to be V ice
P resident in charge o f th e C incinnati B ra n ch .
He had previously been Cashier o f the C incinnati
B ran ch , culm inating m any years o f service at
th a t institu tion. In taking over the top post of
the C incinnati B ra n ch , M r. Johnson succeeded
W ilbur T . B la ir who had resigned as o f Ju ly 15
to accep t an im portant post with a steel m anu
facturing concern.
j/ V p p o in t jie n t
Mr. Johnson
Mr. Ilostctlcr
F o r a fu ll roster of the officers and directors of the bank as of January I, 1954, please turn the page.
JO H N C. V IK D E N (Chairman)
Cliairman of llic Board, John C. Virden Company, Cleveland, Ohio
LEO L . R U M M E L L (Deputy Chairman)
D ean, College of Agriculture, The Ohio State University, Columbus, Ohio
E D ISO N H O B S T E T T E R , President
'Phe Pom eroy National Bank
Pom eroy, Ohio
JO H N D. B A IN E R , President
The M erchants National Bank and
T rust Company of Meadville
Meadville, Pennsylvania
JO E L M . B O W L B Y , Chairman of the Board
The Eagle-Picher Company
Cincinnati, Ohio
E D W A R D C. D O L L, President
Lovell Manufacturing Company
Erie, Pennsylvania
J . B R E N N E R RO OT, President
The H arter Bank & T rust Company
Canton, Ohio
S ID N E Y A. S W EN SR U D , Cliairman of
the Board
Gulf Oil Corporation
Pittsburgh, Pennsylvania
A L E X A N D E R E . W A L K E R , Chairman of the Board and President
The National Supply Company, Pittsburgh, Pennsylvania
(from the Fourth District)
G EO R G E G UN D , President
The Cleveland T rust Company, Cleveland, Ohio
D IR EC TO R S
JO H N C. B A K E R ( Chairman)
President, Ohio University
Athens, Ohio
F R E D A. DOW D , President
The Atlas National Bank
Cincinnati, Ohio
H E N R Y C. B E S U D E N , Farm er
Winchester, Kentucky
L. M. C A M P B E L L , President
The Second National Bank
Ashland, Kentucky
JO S E P H B. H A L L , President
Kroger Company
Cincinnati, Ohio
E . S. D A B N E Y , President
Security T rust Company
Lexington, Kentucky
A N T H O N Y IIA S W E L L , President
D ayton Malleable Iron Company
D avton, Ohio
O F F IC E R S
R IC H A R D G. JO H NSON , I ice President
JO H N B IE R M A N N , J R ., Assistant Cashier
P H IL J . G E E R S . Cashier
C L Y D E H A R R E L L , Assistant Cashier
G EO R G E W. H U R ST , Assistant Cashier
pUHWlliill'JWPII
I
hm
a m
wmm
mmm
W IL B U R D. F U L T O N , President
D O N ALD S. TH O M PSO N , First Vice President
R O G E R R . C L O U S E, I ice President
and Secretary
G EO R G E H. E M D E , Assistant Vice President
JA M E S R . L O W E , Assistant I ice President
M E R L E H O S T E T L E R , Director of Research
R IC H A R D G. JO H N SO N , Vice President
JO S E P H M . M IL L E R , Assistant f ice
President
JO H N W . K O SSIN , Vice President
H UGH M . B O Y D , Chief Exam iner
A L F R E D II. L A N IN G , Vice President
and Cashier
C H A R LE S J . BO L T IIO U S E, Assistant
Cashier
M A R T IN M O RRISO N , I ice President
C H A R LE S E . C R A W FO R D , Assistant
Cashier
11. E . J . S M IT H , Vice President
P A U L C. S T E T Z E L B E R G E R , Vice President
C A R L F . E IIN IN G E R , General Auditor
ELW O OD V. D EN TO N , Assistant Cashier
E L M E R F . F R IC E K , Assistant Cashier
G EO R G E R . ROSS, Assistant Cashier
P H I L L IP B . D ID IIA M , Assistant
Vice President
H A R M EN B . F L IN K E R S , Assistant
Secretary
H E R M A N R. N E F F (Chairman)
President, The George S. Rider Company— Engineers, Cleveland, Ohio
II. P . LAD D S ( Vice Chairman)
President, The National Screw and
M anufacturing Company
Cleveland, Ohio
JO H N P . M cW ILL IA M S , Chairman of the Board
Youngstown Steel Door Company
Cleveland, Ohio
A R T H U R W . S T E U D E L , President
Sherwin-Williams Company
Cleveland, Ohio
SAM W . E M E R S O N , President
The Sam W. Emerson Company
Cleveland, Ohio
SMSSfffl
DIRECTORS
C L IF F O R D F . HOOD ( Chairman)
President, United States Steel Corporation
Pittsburgh, Pennsylvania
M O N T FO R T JO N E S , Professor of Finance
The University of Pittsburgh
Pittsburgh, Pennsylvania
P A U L M A LO N E, President
Second National Bank of Uniontown
Uniontown, Pennsylvania
DOUGLAS M . M O O RH EA D , Farm er
North E a st, Pennsylvania
A L B E R T L . RA SM USSEN , President
The Warren National Bank
Warren, Pennsylvania
H E N R Y A. R O E M E R , JR ., President
Sharon Steel Corporation
Sharon, Pennsylvania
W IL L IA M B . M cF A L L , President
Commonwealth T rust Company of
Pittsburgh
Pittsburgh, Pennsylvania
O FFICERS
JO H N W . KOSSTN, Vice President
JO H N R . P R IC E , Assistant Cashier
A R T H U R G. F O S T E R , Cashier
JO H N A. SC H M ID T , Assistant Cashier
W . H U N T E R N O L T E , Assistant Cashier
RO Y J. S T E IN B R IN K , Assistant Cashier
THE TWELVE FEDERAL RESERVE DISTRICTS
SUMMAEE
OF
BANK AND PUBLIC RELATIONS ACTIVITIES
OF
FEDERAL RESERVE BANK OF CLEVELAND
- 1953 -
LIST OF ACTIVITIES
1«
2.
3o»
5«
6.
7a
8.
9.
10,
11.
12*
13.
14*
A ctivities
Page
Introduction ...............................................................................
1
Bank V isiting Program ..................................................
2
J
Bankers Conference Meetings . . . . . . . . . . . .
3
Agricultural Projects and M eetings................. ....
5
Bankers Farm Management Meetings
Kentucky
Ohio
Pennsylvania
West Virginia
Forest Resource Development
Kentucky
Ohio
Other A ctivities
Movie P r o je cts........................................................... . . . . 8
Radio and Television Programs .......................................... 9
Business Trends Broadcasts
Farm and Home Hour. Broadcasts
Other Radii and Television Broadcasts
Publicity
11
National Coverage
D istrict Coverage
Local Coverage
Civic Affairs • • • • . ......................... ..................................13
"Bankers1 Day at Federal" ....................................................... 13
Federal Reserve System Meetings ......................... .................13
Bank Directors Tours and Luncheons .......................................14
V isitors at Bank..................... ....
. . . . . . . . . 14School and College Programs . . . . . . . . . . . . 15
Luncheons . . . . . . . . . . . . . . . . . . . . 16
Formal Luncheons
Informal Luncheons
Luncheon Meetings
Group Luncheons
LIST OF ACTIVITIES
(Continued)
A ctivities
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
Page
Banker and Business Meetings Attended . . . . . .
17
Speakers for Banker and Business Meetings . . . •
18
Research Department . . . . . . . . ......................... ...........19
Libraiy S er v ic e ................. ............................................................19
Annual Report .................................................................................. 20
Currency E x h ib it ..........................................................................20
American Institu te of Banking . . . . . . . . . .
21
High School and College Relationships . . . . . .
21
Expenses of Bank and Public Relations Program . .
21
Conclusion........................................................................................ 22
Exhibit
Exhibit
Exhibit
Exhibit
Exhibit
Exhibit
Exhibit
A
B
C
D
E
F
G
SUMMARI
OF
BANK AND PUBLIC RELATIONS ACTIVITIES
OF
FEDERAL RESERVE BAM OF CLEVELAND
- 1953 Bank and public relations a ctiv ities at Federal Reserve Bank of
Cleveland represent a major effort in which the directors of the main
office and branches as v e il as the officers and employees participate in
one way or another. It is appropriate at the end of the year that a re
view and evaluation be made of those a ctiv ities which have been carried
on during the year*
The program during 1953 was designed to meet the statement of basic
objectives of the bank and public information program of the Federal Re
serve System, adopted by the Conference of Presidents at it s meeting in
June 1953, which are:
To bring about understanding of the Federal Re
serve System®s statutory purposes, respon sibilities
and operations so as to maximize the effectiveness
of the System, and conversely,
To keep the Federal Reserve System aware of
attitudes toward the Federal Reserve System* s poli
cies and regulations and the p olicies and operations
of individual Reserve banks#
Furthermore, the specific objectives of th is bank in carrying out
these a c tiv itie s during the year were to
1. Render the best possible service to the banks in
the Fourth Federal Reserve D istrict;
2 . Keep in close and continuous contact with bankers
so as to maintain a cordial and harmonious rela
tionship with the banks in th is d istrict;
3* Present helpful and practical information to bankers,
businessmen and the public; and
U<> Engage in a c tiv itie s which benefit the banks and the
public, and which reflect credit upon the Federal
Reserve System, and the Federal Reserve Bank of
Cleveland and it s entire sta ff.
During 1953 the bank and public relations a ctiv ities were conducted
■within the framework of both sets of objectives and every effort was made
to plan and execute a program which would be a practical and helpful one
to bankers and other businessmen as well as to the general public.
More and more attention is being focused currently upon the credit
and monetary responsibilities of the System, If the System is to attain
its maximum effectiveness and influence, it is imperative that the respon
sible leaders in all walks of life be made cognizant o£ and more familiar
with these important responsibilities, and how they are carried on from
day to day.
One of the important features of the 1953 program was to present to
different groups material that explained the role the Federal Reserve
System has in fostering an economic climate conducive to (1) a high lev el
of employment, (2) stab ility in the general price le v e l, and (3) a rising
standard of liv in g . The procedures and operations of the Board of Gover
nors of the Federal Reserve System, the Open Market Committee, and the
Federal Reserve banks were the basis for discussions a t many of the meet
ings held during the year.
This summary has been prepared to better evaluate the results of
these activities during
It is intended to serve also as a useful
guide in planning the bank*s program for 1954,
1953*
BANK VISITING PROGRAM
Two scheduled c a lls, as well as a number of courtesy and special
purpose c a lls, were made on banks in the Fourth D istrict by officers and
fie ld representatives of the main o ffice and branches of th is bank dur
ing 1953* A number of anniversary celebrations and other special func
tions of banks also were attended.
The primary purpose of these visits was to discuss problems of mu
tual interest to the bankers and to this bank. These visits presented
an excellent opportunity for the officers and representatives to obtain
grassroots information concerning current banking problems, general busi
ness conditions, and to maintain close personal relationships with the
banks in the district.
Although'nonmember banks were called upon, membership in the System
was discussed only when the subject was brought up by the banker.
Following bank visits, written reports containing comments on bank
ing and business trends, and conditions in the various communities were
prepared and circulated to ali officers at the main office and branches.
The bank-visiting program has been an invaluable means of keeping
in close touch with the banks, and in maintaining friendly relations with
the bankers in the district. Also, while at these banks our officers and
fie ld representatives on numerous occasions were able to a ssist the
bankers on special problems confronting than.
The following tabulation shows the number of ca lls that were made
at member and nonmember banks by the officers and fie ld representatives
at each o ffice of th is bank during the year.
Member
Nonmember
Office
Banks
Total
Banks
Cleveland
932
599
333
Cincinnati
318
712
394
Pittsburgh
382
147
529
Total
798
1,375
2,173
BANKERS CONFERENCE MEETINGS
Eight bankers conference meetings were sponsored during 1953 by
th is bank in cooperation with various clearinghouse and county bankers
associations in the main office territory. They were attended by 745
directors and officers from 250 banks in 32 Ohio counties. (For the
territo iy covered see the accompanying Fourth D istrict map.)
The purposes of these bankers conference meetings were to
1. Provide an opportunity for th is bank*s officers
and senior economists to discuss with bankers
from various sections of the d istr ic t economic
developments and current banking problems, and
to give than an occasion to express their views on
these subjects;
2. Present to the directors, officers and sta ff mem
bers of banks in the d istr ic t the views of th is
bank on banking and credit conditions and promote
better understanding of the Federal Reserve
System*s functions, p olicies and operations; and
3. Afford an opportunity for th is bank’s officers and
other representatives to become better acquainted
with the bankers of the d istr ic t.
The meetings held in 1953 were planned and sponsored on the same
general basis as those held in previous years. The president or secre
tary of the local clearinghouse or county bankers associations extended
the invitations to the banlcs in their respective areas. The meetings
were held at either countiy clubs or hotels, depending upon the avail
a b ility of fa c ilit ie s . A ll of the expenses in conducting these meet
ings were absorbed by th is bank.
B A N K E R S ' C O N F E R E N C E M E E T IN G S
SPO NSO R ED BY F E D E R A L R E SE R V E BA NK O F C L E V E L A N D
D U R IN G 1953
CLEVELAND
T E R R IT O R Y
FEDERAL RESERVE
DISTRICT NO. 4
B A N K E R S ' C O N F E R E N C E M E E T IN G S
N u m b e r o f m e e t in g s h e ld
C o u n t ie s c o v e r e d
C IN C IN N A T I
T E R R IT O R Y
32
T o ta l n u m b e r o f b a n k s
in v it e d
250
N u m b er o f bank d ir e c to r s
a n d o f f i c e r s a tt e n d in g
m e e t in g s
745
Each bankers conference meeting began in mid-afternoon, and the pro
gram consisted of prepared talks given by one or more officers or econo
mists of th is bank. These were followed by informal remarks about local
business conditions and different phases of bank operations by senior o ffi
cers of four or five banks represented at the conference. Subjects dis
cussed by representatives of th is bank included: "The Banking Prospects for
1953j" "The Pyramid of Bank Credit" and "How Solid is the Business Future?"
The following is a l i s t of the bankers conference meetings held
during 1953:
Date
Area and Place of Meeting
Attendance
Mar. 17 Heniy-Defiance County Bankers Association
94
Kettenring Golf Club, Defiance, Ohio
Mar. 18 Sandusky Area Bankers Conference
80
Plum Brook Country Club, Sandusky, Ohio
Mar. 19 Mansfield Area Bankers Conference
70
Mansfield-Leland Hotel, Mansfield, Ohio
Mar. 24 Newark Area Bankers Conference
96
Moundbuilders Country Club, Newark, Ohio
Mar. 25 Canton Area Bankers Conference
106
St. Francis Hotel, Canton, Ohio
Mar. 26 Wooster Area Bankers Conference
104
Wooster Countxy Club, Wooster, Ohio
Nov. 18 Zanesville Area Bankers Conference
110
Zanesville Countiy Club, Zanesville, Ohio
Nov. 19 Salem Area Bankers Conference
85
Salem Golf Club, Salem, Ohio
______
745
A complete tabulation of these bankers conference meetings, showing
counties represented, personnel of th is bank who were present, and the
number of guests at each event is given in Exhibit A. A typical program
and pictures of bankers attending one of these meetings are also included
in th is exhibit.
News stories about these meetings appeared in respective area news
papers both before and following the events. Pictures were taken at
several of the meetings and also appeared in conjunction with news a rti
cles in banking publications.
-5 AGRICULTURAL PROJECTS AND MEETINGS
Various agricultural projects completed by th is bank during 1953 are
segregated and described on a state-wide basis.
BANKERS FARM MANAGEMENT MEETINGS
Kentucky
"Financing Livestock on Kentucky Farms" was the theme of three dis
tr ic t meetings arranged by the Kentucky Bankers Association in cooperation
with the College of Agriculture of the University of Kentucky and th is
bank. The primaiy purposes of these meetings were to (1) provide bankers
with information relative to capital requirements and returns to be ex
pected from livestock enterprises, and (2) promote discussion of problems
associated with financing such a c tiv itie s.
Livestock loan requests typical of the area served by each meeting
were discussed by a panel consisting of two local bankers, a county agricul
tural agent and representatives of the College and th is bank. Active par
ticipation from the audience was fa cilita ted by providing each person in
attendance with a credit folder giving information pertinent to each of the
loan requests discussed by the panel. From the participation in the discus
sion, and the number of banks represented i t was evident that financing
livestock enterprises was a subject of considerable in terest among the banks
serving Kentucky farmers.
Timely comment on current banking trends by the president of the Kentucky Bankers Association, and the president of th is bank provided an appro
priate background for the discussion of livestock credit. Capital require
ments and returns to be expected from livestock enterprises were outlined
by the fie ld agent in farm management at the University of Kentucky.
The date, location and attendance at each meeting follow:
Date
Location
Attendance
Aug. 31 Prichard High School, Grayson, Kentucky
56
Sept. 1 Butler High School, Butler, Kentucky
95
Sept. 3 Lancaster Christian Church, Lancaster, Ky.
95
The Kentucky Bankers Association, as the sponsoring organization,
issued a ll announcements publicizing the meetings, and the College of
Agriculture provided technical assistance in assembling data on capital
requirements and income from livestock enterprises. Hie officers and
senior agricultural sp ecialist of th is bank participated in the program;?
the dinner expense and cost of reproducing the credit folders were ab
sorbed by th is bank, A number of lo ca l bankers cooperated by providing
information on typical requests for credit to finance livestock enter
p rises.
-6 -
Oliio
The changing pattern of farm projects and father-and-son partnerships
were emphasized in a bankers* farm tour sponsored by the Northeastern Ohio
Bankers Association, on September 10, in which th is bank was privileged to
cooperate. Seventy-five bankers and a dozen or more agricultural leaders
participated in the one-day tour which included a dairy-grassland farm, a
daiiy-beef farm, and a cash-grain and seed farm near Kinsman, Ohio. Each
of the farms was operated as a father-and-son partnership.
The local bankers association arranged a ll d etails incident to the
tour. This bank assembled and printed pertinent information relative to
each farm, data concerning the changing pattern of farm enterprises in the
area, and was host at the luncheon. (See Exhibit B for the program and a
picture of th is farm tour.)
Penn svlvania
Two meetings of a similar nature for bankers in six counties of
Pennsylvania were participated in by th is bank. These meetings represented
the joint effort of a local bankers group in cooperation with the Agricul
tural Extension Service of Pennsylvania State University and our Pittsburgh
branch.
A feature of these meetings was a bus tour tinder the supervision of
the local agricultural agent to one or more farms. Thus the bankers not
only had an opportunity to hear about proven livestock farm management
practices from representatives of the agricultural college, but also to
see the results being obtained when applied on farms in their area.
The meeting held at Uniontown, Pennsylvania, September 15, was for
bankers in Fayette, Greene and Somerset counties. A v is it to an out
standing daiiy farm in the area provided the background for a discussion
of dairy fanning practices and the use of credit. At a dinner meeting
the agronomist and daiiy sp ecialist of Pennsylvania State University, and
the chairman of the Pennsylvania Bankers Association's Agricultural Com
m ittee spoke. Approximately AO were in attendance.
Sixty bankers from Clarion, Indiana and Jefferson counties met on
September 16 at Punxsutawney, Pennsylvania, to consider faim management
practices on a daiiy farm, a beef-breeding enterprise and a commercial
poultry faim. Following a bus tour to the three farms, the bankers assem
bled for a dinner meeting at which faim management practices and the use
of credit were discussed.
The bus transportation and dinners in each instance were provided at
th is bank*s expense. A representative of the Pittsburgh branch and th is
bank’s senior agricultural sp ecialist participated in these programs.
West Virginia
“E ffect of Recent Developments in Dairy Farming on Capital Require
ments" and "Use of Credit in Part-time Farm Operations" were the two
-7 -
principal subjects dealt with during an agricultural tour and meeting
for bankers in the six-counV Fourth D istrict area of West Virginia,
on September 17, at 'Wheeling.
The chairman of Group One of the West Virginia Bankers Associa
tion, "with the assistance of the local agricultural agents, completed
arrangements for the tour and meeting. Following the tour of a dairy
farm, the agricultural economist and the extension dairyman of the Col
lege of Agriculture of the University of West Virginia discussed farm
management practices and recent developments in dairy fanning that af
fect capital requirements. The dinner meeting, which was attended by
more than 40 bankers and agricultural leaders, concluded with a state
ment by the dean of the College of Agriculture on the importance to the
area of a sound agricultural program.
Others participating were a director of the Pittsburgh branch and
our senior agricultural sp ecia list. The dinner and bus transportation
were provided at this bank*s expense. (See Exhibit B for the program of
th is meeting.)
FOREST RESOURCE DEVELOPMENT
Kentucky
Recognizing the p oten tialities of forest resources development in
the eastern quarter of the State, the Kentucky Bankers Association in
cooperation with the University of Kentucky and th is bank, sponsored a
meeting of bankers, forest authorities and industry representatives at
Hazard, Kentucky, January 28, at which the present status of the area* s
forest resources was discussed. I t was pointed out to the 100 bankers
and others in attendance that new employment and m illions of dollars of
additional income could be realized i f recognized forest practices were
more broadly applied in the forests of the area. Suggestions were out
lined by forestry experts as to hov individual bankers might foster the
development of forest resources in their respective communities. Sub
sequent reports indicated that bank-sponsored woodland improvement
projects have met with a favorable response, and the Kentucky Bankers
Association contemplates further a ctiv ity in th is fie ld in 1954.
Ohio
With about two-thirds of the commercial forest acreage in the State
included in farm woodlands i t is obvious that any effort to improve the
productivity of Ohio forest resources must start with farm woodlot im
provement. The Ohio Forestiy Association sought the cooperation of th is
bank in in itia tin g a farm woodlot conference for the purpose of develop
ing a program of woodland improvement that would attract the in terest of
woodland owners. Such a conference was held at the Southern Hotel,
Columbus, Ohio, on September 28, with 75 foresters, woodland owners and
industry representatives in attendance. The senior agricultural special
is t of th is bank served as cliairman of the conference, and the dinner con
cluding the program was at our expense*.
-8 -
OTHER ACTIVITIES
The senior agricultural sp ecialist participated on a number of
radio programs which are described more fu lly in the radio and tele
vision section of th is summary. He also appeared as speaker at meet
ings of such groups as: the Athens Board of Trade, Cuyahoga County
Farm Bureau and Grange, Greene County Farm Forum, KDKA Farm Leaders
Conference, and Starlc County Milk Producers Association, discussing
"Use of Credit in Farming,” "Economics of Soil Conservation," and
"Changing Patterns in Farming," among other topics.
MOVIE PROJECTS
One of the important bank and public relations a ctiv ities continued
to be the use of th is bankfs film library by banks, schools and service
organizations. A new film title d "YOUR MONEY’S WORTH" produced by the
Federal. Reserve Bank of Richmond was added to our film library during
1953.
The seven film s now available for lending to high schools, colleges,
service clubs, business and professional organizations, and others are:
1. "A DAY AT FEDERAL RESERVE BAM OF CLEVELAND"
2. "SOIL CONSERVATION PAYS"
3. "THE FEDERAL RESERVE BANK AND YOU" (Minneapolis film)
I , "THE FEDERAL RESERVE SYSTEM" (System film)
5. "YOUR MONEY*S WORTH" (Richmond film)
6. "U. S. TREASURY - COINAGE AND PRINTING OF MONEY"
7. "THE SECRET SERVICE STORY"
More than 75 per cent of the requests for the use of the film "A
DAY AT FEDERAL RESERVE BANK OF CLEVELAND" came from high schools and
colleges, while A2 per cent of the requests for our film "SOIL CONSERVA
TION PAYS" originated at schools and colleges, and 37 per cent came from
farmer groups.
Copies of most of these film s are also available at the Cincinnati
and Pittsburgh branches. Twenty copies of "A DAY AT FEDERAL RESERVE
BANK OF CLEVELAND" and sixteen copies of "SOIL CONSERVATION PAYS" are
available at other Federal Reserve banks, lib raries and u n iversities,
(See Exhibit C for folders describing motion pictures available,)
A combined report of the activity in the use of these film s indi
cates that they were shown to 1,857 audiences with a to ta l attendance
of 104-,000, (See accompanying maps indicating Fourth D istrict counties
in which the film s were shown in 1953.)
COUNTIES IN WHICH T H E FILM
"A DAY A T F E D E R A L R E S ER VE B A N K OF CLEVELAN D"
W A S S H O W N DURING 1953
FEDERAL RESERVE
DISTRICT NO. 4
Film - "A D A Y A T F E D E R A L R E S E R V E
B A N K OF CLEVELAND"
1953
Number of counties in Fourth
District in which shown
93
Total number of showings in
District
Total attendance at showing
in District
C IN C IN N A T I
T E R R IT O R Y
Grand Total of Times Film Shown
(1949-1953)
G ran d
T o ta l o f R e p o rte d
A tte n d a n c e
808
36,379
3,881
268, 768
COUNTIES IN WHICH THE FILM
"SOIL CONSERVATION PAYS"
W A S S H O W N DURING 1953
FEDERAL RESERVE
DISTRICT NO. 4
Film - "SOIL CONSERVATION PAYS"
1953
Number of counties in Fourth
District in which shown
C IN C IN N A T I
T E R R IT O R Y
57
Total number o£ showings in
district
202
Total attendance at showings
in district
12 , 589
Grand Total of Times Film Shown
U952-1953)
G ran d
T o ta l o f R e p o rte d
A tte n d a n c e
522
-34, 048
COUNTIES IN WHICH T H E FILMS
" THE F E D E R A L R E SER VE B A N K A N D YOU'* A N D
"U. S . TREASURY - COINAGE 8r PRINTING O F M O N E Y 1'
W E R E S H O W N DURING 1953
FEDERAL RESERVE
DISTRICT NO. 4
Films - "THE F E D E R A L R E S E R V E B A N K
A N D Y O U 1'A N D "U.S. T R EA SUR Y COINAGE & PRINTING O F M O N E Y "
1953
C IN C IN N A T I
T E R R IT O R Y
Number of counties in Fourth
District in which shown
54
Total number of showings in
district
280
Total attendance at showings
in district
17,410
Grand Total ^ofJTiri^s Films Shown
G ra n d T o ta l o f R e p o rte d A tte n d a n c e
448
2 7 ,6 6 1
COUNTIES IN WHICH T H E FILMS
" THE F E D E R A L RESERVE SYSTEM" A N D
"THE SECR ET SERVICE STORY"
W E R E S H O W N DURING 1953
FEDERAL RESERVE
DISTRICT NO. 4
Films - "THE F E D E R A L R E S E R V E SYSTEM"
A N D "THE SECRET SERVICE STORY"
1953
Number of counties in Fourth
District in which shown
52
Total number of showings in
district
237
Total attendance at showings
in district
12,805
C IN C IN N A T I
T E R R IT O R Y
Grand Total of Times Films Shown
679
(1950-1953)
--Grand Total of Reported Attendance 27,144
RADIO MD TELEVISION PROGRAMS
During 1953 twelve officers and senior sta ff members appeared on one
television and seventy-four radio programs discussing bank, economic or
related subjects. In addition, two vice presidents appeared on numerous
television and radio programs dealing with their Community Chest work in
Cleveland and Pittsburgh.
Two radio programs on which representatives of the research depart
ment appeared, were part of the National Broadcasting Company series
"Cleveland Calling London.*1 These programs were heard in Ehgland over
the fa c ilitie s of the British Broadcasting Corporation.
The "Business Trends” broadcasts over Radio Station WGAR, Cleveland,
Ohio, and the-“Farm and Home Hour” programs from Radio Station WOSU,
Columbus, Ohio, continued to be the principal radio forums on which th is
bank*s personnel appeared.
Business Trends Broadcasts
The bank’s economists and agricultural sp ecialists continued to parti
cipate in the weekly "Business Trends" programs which were inaugurated more
than fiv e years ago. There were fifty-tw o such weekly broadcasts during
1953, and the sixth year of "Business Trends" was launched by the director
of research, on Sunday, October 11, 1953, when the 26lst consecutive pro
gram was broadcast.
On that date the broadcast was changed to the new hour of 5:4-5 p.m.
to 6:00 p.m„, Sundays, which period commands a considerably greater liste n
ing audience than the previous Saturday morning broadcast time.
Banking, business and general economic subjects of current in terest
to bankers, businessmen and the public were presented. The text of these
addresses was prepared in advance of the broadcasts, and printed copies
were sent to banks, business concerns and individuals so as to reach them
the day following the broadcast. The popularity of th is radio program
was reflected in the continuing number of new requests received for
printed copies of the material broadcast.
Approximately 13,500 copies of these broadcasts were printed and
distributed each week during 1953 compared with 11,000 a year ago. Indi
vidual mailings account for about one-half of the current to ta l, or 1,500
more than in 1952. (A l i s t of subjects discussed and a sample copy of
"Business Trends" is included in Exhibit D.)
Farm and Home Hour Broadcasts
The senior agricultural sp ecialist wrote the scripts for, and parti
cipated in twelve "Farm and Home Hour" programs over Radio Station WOSU,
Columbus, Ohio, (the Ohio State University radio station) during 1953.'
The programs were of the discussion "type, with county agents, university
personnel and other representatives w ell known in agricultural circles
-10participating in the fifteen minute broadcast periods heard at 12:15 p.m.
on selected Thursday or Friday dates. The subjects presented were
closely related to agricultural a ctiv ities in Ohio.
Topics presented in the 1953 series were:
Sub.i ect
Date
"Ohio Farm Land Prices Ease"
Jan. 30
"Farm. Costs, Credit and Income"
Feb. 27
"Credit for Farm Development"
March 20
"Current Considerations in the
April 24Use of Farm Credit"
"Farm Land Prices Decline"
May 22
June 26
"Demand for Farm Credit"
"Wheat Marketing Loans"
July 31
"Ohio Bankers Farm Meeting"
Aug. 28
"Ohio Farmers Use More Credit"
Sept. 25
Oct. 30
"The Current Trend in Farm Finances"
Nov. 27
"Year-end Farm Statements"
"A Farm Record Affords an Annual
Dec. 31
Evaluation"
Other Radio and Television Broadcasts
As part of a series designed by Radio Station WHK, Cleveland, Ohio,
to acquaint it s listenin g audience with lo ca l business concerns, the
president, vice president and cashier, and an assistant vice president
appeared on fiv e daily sustaining programs in March. They discussed
MThe Organization of the Federal Reserve Bank," "The Operations of our
Cash Department,” “Currency - F it and U n fit,” ”The Collection of
Checks,” and "The Federal Reserve Vault.11
Members of the industrial economics section of the research depart
ment recorded two five-minute talks on "How Cleveland Workers Spend
Their Income," and "The Steel Worker in Cleveland" for broadcast over
Radio Station WTAM, Cleveland, Ohio, and over the fa c ilitie s of the Brit
ish Broadcasting Corporation in England, on an international program
entitled "Cleveland Calling London."
-11 In addition to these a ctiv ities the retiring president of the bank
was the principal speaker on.a fir s t of the year program over Radio
Station ttTAM, talking on the subject "How’s Business?"
The senior industrial economist also spoke on "The Future of Business"
over Radio Station ¥STV, Steubenville, Ohio, and the senior agricultural
sp ecialist appeared on the Cleveland "Press Club Presents" program over
Station IfflK, discussing the topic "Dairy Facts." He also appeared on Tele
vision Station WLW-C, Columbus, Ohio, speaking on the subject, "Capital
Requirements of a Typical Fam ."
PUBLICITY
From the standpoint of publicity, the year 1953 was unique for this
bank in that (l) a larger number of important stories were originated by
the bank than during any previous year; and (2) the tota l of 93 requests
for stories by newspapers and magazine editors exceeded the tota l in pre
vious years#
In addition to the 85 news releases originated by the bank or the
Board of Governors of the Federal Reserve System, 31 stories which ori
ginally appeared in FEDERAL RESERVE NOTES, the monthly employee publica
tion, were reprinted in whole or in part by various newspapers and maga
zines throughout the Fourth D istrict. Many of these stories also were
picked up and broadcast by radio or television news editors, or both.
Each one of the 85 news releases was sent to the following media of
communication within the Fourth Federal Reserve D istrict:
102 daily newspapers
441 weekly newspapers
78 radio stations
36 television stations
During 1953 publicity was obtained in three geographical c la ssifica
tions - lo ca l, d istr ic t, and national; local and d istrict; and lo ca l.
In addition to the releases by the research department, examples of
the subjects and coverage given other released stories are:
Local. D istrict and National
1952 Annual Report of Federal Reserve Bank of Cleveland
President Ray M. Gidney offered post of Comptroller of
the Currency
Report of Group Operating Patios of Banks in the Fourth
Federal Reserve D istrict
Wilbur D. Fulton appointed president, and Donald S.
Thompson, fir s t vice president of Federal Reserve Bank
of Cleveland
J, Brenner Hoot and Alexander E. Walker elected
to board of directors of Federal Ee serve Bank
of Cleveland
John W. Kossin, vice president in charge of
Pittsburgh branch, named chairman of 1953 Pittsburgh
Community Fund campaign
Local and D istrict
Board of Governors of Federal Reserve System changes
discount rate
Wilbur D. Fulton, then fir s t vice president, addresses
"Top Management Night11 dinner meeting of Cleveland
Chapter, Robert Morris Associates
General story on six bankers conference meetings held
at Defiance, Sandusky, Mansfield, Newark, Ganton and
Wooster, Ohioj and two others la ter in the year held
at Salem and Zanesville, Ohio
Feature story on President Ray M. Gidney's retirement
from Federal Reserve Bank of Cleveland
Fred 0. K iel, senior economist, addresses annual con
vention of Midwest Purchasing Agents
Local
Explanatory a rticle about new coin counting and wrapping
machines
Martin Morrison, vice president, named chairman of
Commerce and Industry Division, Cleveland Community
Chest
Claude I . Hummel, senior agricultural sp ecia list, speaks
before farmer-banker group at Wellington, Ohio
Photographs which accompanied most important stories frequently were
wirephotoed or mailed by the wire services to the major c itie s . (See
Exhibit E for samples of news releases and requested stories which ap
peared in local, d istr ic t, and national publications»)
-1 3 -
CIVIO AFFAIRS
The active participation of directors, officers and employees in
civic affairs, community enterprises and proj ects of service organiza
tions was an important phase of the over-all bank and public relations
program in 1953.
Three vice presidents served respectively as general chairman of the
Greater Allegheny County Community Chest, chairman of the Commerce and
Industiy Division of the Cleveland Community Chest, and area chairman of
it s Metropolitan Division. Their participation required numerous radio,
television and other public appearances which indirectly, at le a st, re
flected favorably on the bank. A supervisory employee at the main office
worked for three months in the Cleveland solicitation program under the
"loaned executive plan." Another vice president and an assistant cashier
acted as captains of fund solicitation teams, and two vice presidents
served in the same capacity on local college building fund programs.
Directors, officers and employees assumed respon sibilities as o ffi
cers and trustees of churches, hospitals, charitable and philanthropic
organizations and professional so cieties. Some were associated actively
as members and officers of service organizations such as Rotary, Kiwanis
and Exchange clubs, and other groups such as the Council on World Af
fairs (Cleveland), World Trade Council (Pittsburgh), and tre.de and pro
fessional organisations.
The bank's fa c ilitie s were used on several occasions during the
year for group luncheons and committee meetings of civic groups. (See
Exhibit F - Participation in Civic Affairs)
BANKERS DAY AT FEDERAL
This was the fourth year in which a series of "Bankers1 Day at
Federal" programs was held. During 1953 fiv e meetings were held with
a to ta l attendance of 152 bankers representing 66 banks.
Usually the programs started at 10:00 a.m.j they consisted of a
short period for greetings and introductions, the showing of the movie
"A DAY AT FEDERAL RESERVE BANK OF CLEVELAND" and a tour of our operat
ing departments. Luncheon was served to the guests at these functions,
followed by a short talk ty one of the bank's economists, and a movie
at the close of the tour. Either th is bank's film "SOIL CONSERVATION
PAYS" or "THE FEDERAL RESERVE SYSTEM" produced by Encyclopaedia Britan
nica, was shown. (See the accompanying map of the area represented at
these meetings j also Exhibit F for pictures of "Bankers1 Day" groups.)
FEDERAL RESERVE SYSTEM MEETINGS
Largely through the efforts and encouragement of the chairman of ■
the board of directors of th is bank, a program was inaugurated during 1953
COUNTIES R E P R E S E N T E D A T "BANKERS’ D A Y A T FEDERAL" MEETINGS
DURING 1953
FEDERAL RESERVE
DISTRICT NO. 4
"BANKERS' D A Y A T FE DE R A L "
1953
Total number of counties
represented
Total number of banks
represented
Total number of bankers
attending meetings
C IN C IN N A T I
T E R R IT O R Y
152
-1 4 -
of sponsoring meetings to which business, civic and governmental leaders
were invited. One or more of our officers or economists were principal
speakers on the general subjects of "Federal Reserve System P olicies and
Operations" and the "Pyramid of Bank Credit."
The response to these meetings was most encouraging, with numerous
requests being made by guests that additional meetings be held to discuss
other aspects of these subjects. I t is anticipated that th is program w ill
be continued on an accelerated basis during 1954» (See Exhibit F for
guest lis t s of these luncheons*)
BAM DIRECTORS TOURS MD LUNCHEOHS '
The practice of extending special invitations to bank directors to
be guests .of th is bank at lunch and to view the operations of the various
departments was continued in 1953*
This program afforded bank directors an opportunity to become better
acquainted with our officers, and with the functions of the Federal Re
serve System and th is bank, as well as to discuss subjects of mutual in
terest.
VISITORS AT BAM
Tours through the main office and branches were an important a ctiv ity
during the year. This phase of the bank and public relations program
reached hundreds of individuals, including bankers, businessmen, and col
lege, university and high school teachers and students.
Members of various service clubs also were among the most interested
groups. During the la tter months of the year, various member banks sent
a number of their employees to v is it th is bank as part of their educa
tional programs.
The to ta l number of v isito rs at a ll o ffices, including those making
special tours of our buildings, are cla ssified as follows:
Bankers
Others
Total
Students
Cleveland
1,538
600
547
2,685
Cincinnati 130
461
403
994
Pittsburgh 262
692
227
203
2,168
4,371
939
1,264
(See accompanying map for counties represented by groups which toured
main o ffice and branches, and Exhibit G for pictures of typical tour
groups.)
COUNTIES R E P R E S E N T E D BY GROUPS WHICH T O U R E D
MAIN OFFICE A N D BRA NCH ES
DURING 1953
FEDERAL RESERVE
DISTRICT NO. 4
TO U R G ROU P S DURING 1953
(Excluding "Bankers' Day")
Number of tour groups
Number of counties
represented
Total number of visitors in
tour groups
C IN C IN N A T I
T E R R IT O R Y
3,777
-1 5 SGHOQL AND COLLEGE PROGRAMS
A number of programs designed for teachers and students of high
schools and colleges were conducted during 1953. A two-day conference
for 15 professors from 14 colleges and universities in the Fourth
Federal Reserve D istrict, who teach economics and business subjects was
held at the main o ffice on November 5 and 6. This inaugurated a new
type of clin ic or forum sponsored by th is bank. Five senior officers
participated in the program, discussing the credit and monetary respon
s ib ilitie s of the Federal Reserve System, and the policies and operations
of th is bank. Group participation followed the principal talks. A ll
expenses, including transportation, hotel accommodations, and cost of
meals for the group were paid by the bank. Many of those in attendance
indicated that the conference fille d a long-existing need. The guests
were unanimous in their opinion that the project should be continued so
that others in the teaching fie ld might have the opportunity for sim ilar
informal study of Federal Reserve p olicies and operations. (See
Exhibit G for picture of this group.)
This bank cooperated with Case Institute of Technology, Cleveland,
Ohio, in it s "Economics in Action” course; 46 teachers of economics,
money and banking, and business administration subjects, from as many
colleges and universities in eastern United States attended. They were
the bank’s guests for a luncheon meeting at which the president and
senior officers spoke on the respon sibilities and operations of the
Federal Reserve System and th is bank. The day’s program included a tour
of the main o ffice building.
Again in 1953 the bank presented a series of afternoon programs for
teachers in Cleveland public schools, in cooperation with the Cleveland
Chamber of Commerce and representative industrial and commercial concerns
in the community. The city-wide program in which th is bank cooperated
was designed to acquaint teachers with the functions and operations of
the various business enterprises. Six groups of teachers toured the
building, observing the work done in the various departments. Later
there was an informal discussion of Federal Reserve p olicies and opera
tions by an officer of the bank, followed by a question-and-answer
period. In the evening the teachers were guests of the bank at dinner,
at which time there was further discussion of Federal Reserve matters.
(See Exhibit G for picture of -typical teacher group touring the bank.)
Members of the Ohio Business Teachers’ Association meeting in con
vention in Cincinnati were conducted on a tour of the Cincinnati branch.
Students of the Air University, U.S.A.F. Institu te of Technology in
Dayton also made a tour of the Cincinnati branch.
Participating in the Business-Education-Industry Day program of the
Cincinnati Chamber of Commerce, fiv e officers and senior sta ff members
of the branch v isited public schools in that city and adjacent communi
t ie s .
- 1 (> -
The fir s t vice president was honored by being invited to present in
Spanish, a series of lectures and seminars on the Federal Eeserve System
to students at the Center for Latin American Monetary Studies held Aug
ust 17 to 21, at the University of Mexico in Mexico City.
An officer and a senior member of the main office personnel depart
ment appeared as speakers or discussion panel members at several college
and high school "Career Day" programs.
LUNCHEONS
A number of luncheons were held at the bank, or under bank auspices,
during 1953. For purposes of this report they can be grouped tinder four
captions: formal luncheons, informal luncheons, luncheon meetings and
group luncheons. Formal luncheons were those to which special invitations
were issued to guests, or at which there was a talk given by the featured
guest.
Formal Luncheons
Several foxmal luncheons honoring distinguished guests v isitin g
Cleveland, and introducing officers of th is bank on the occasion of
special recognition, were held in 1953.
The Honorable Ray M. Gidney, then president of th is bank, was honored
at special luncheons on April 8 and April 10, on the occasion of his ap
pointment Taj’- President Eisenhower to the position of Comptroller of the
Currency.
The Honorable Ivy Baker Priest, Treasurer of the United State^ was
honored at a special luncheon on April 16*
The new president and fir s t vice president of th is bank were honored
at two special luncheons given by John C. Virden, chaiman of the board
of directors of th is bank, on June 16 and 17, and attended by approximately
100 prominent business and civic leaders. (See Exhibit F for copies of
guest lis t s for these luncheons.)
In connection with the v is it to the main o ffice of Governor J. L.
Robertson of the Board of Governors of the Federal Reserve System, a
special luncheon for officers of the bank was held October 15. "While at
the Cincinnati branch, Governor Robertson was guest at another special
luncheon on October 16*
O fficers, group chairmen and past presidents of the Ohio Bankers
Association were guests of th is bank at luncheons on May 12 and November
11, the dates of the State Convention in Cincinnati, and the Associa
tio n 's Group Nine meeting in Cleveland.
Numerous other formal luncheons were held during the year for busi
ness and industrial economists, Fourth D istrict agricultural agents,
-1 7 -
directors, officers and staff members of individual banks in the d istr ic t,
college and university professors, vocational counsellors and commercial
teachers, distinguished guests, such as Dr. Stephen B. L. Penrose, J r.,
president of the American University of Beirut, Lebanon, Mr. H. C. B.
Mynors, director and deputy governor-designate of the Bank of England,
trustees of the Real Property Inventory of Metropolitan Cleveland, and mem
bers of the Cleveland Urban Redevelopment Committee, as well as other civic
groups.
Informal Luncheons
Special efforts were made throughout the year to have bankers,
businessmen, educators, community leaders and others for lunch on an in
formal basis as often as conveniently possible. Such luncheons presented
an opportunity to discuss informally banking and business subjects, topics
of community in terest, and Federal Reserve System operations. In a number
of instances these guests were shown the operating departments of the
bank.
Our representatives when calling on banks invited the officers and
employees of these institutions to v is it our bank when in Cleveland, and
to arrange their program, i f possible, so they might have lunch with the
members of our o ffic ia l sta ff. During the year many bankers accepted
these invitations.
Luncheon Meetings
On numerous occasions in 1953 special groups, of which our officers
and senior staff are members, were invited to the bank for lunch, fo l
lowed by a business meeting or a program. These luncheons provided an
opportunity for the bank*s officers to become better acquainted with the
personnel of these groups, and for a discussion of subjects of mutual
in terest to our officers and economists as w ell as the guests.
Group Luncheons
Various groups of businessmen had lunch at the bank with our o ffi
cers during 1953. Two such groups were the members of the Rotaiy Club
of Loudonville, Ohio, and the Kiwanis Club of Fairview Park, Ohio. The
program, in these instances, consisted of a tour of the main office
building, the shoiring of the film "A DAY AT FEDERAL RESERVE BANK OF
CLEVELAND" and luncheon with our o ffic ia l family, followed by an informal
program.
BANKER AND BUSINESS MEETINGS ATTENDED
During 1953 the officers, economists and other representatives of
th is bank attended a to ta l of 54-7 banker and business meetings. These
meetings included national and State bankers conventions, State bankers
association group meetings, county bankers association meetings and
-1 8 -
special meetings sponsored by individual banks* Chambers of commerce and
service organization meetings and meetings and conventions of professional
and trade organizations also were attended by representatives of th is bank*
A number of the officers and employees of the bank held o ffic ia l positions
or were otherwise active in the affairs of many of the organizations and
associations that sponsored the meetings*
The following l i s t is indicative of the types of meetings attended
during the year:
American Bankers Association
American Institute of Banking
American S ta tistica l Association
Bankers Club, Cincinnati
Cleveland Advertising Club
Cleveland Bar Association
Cleveland Committee on Foreign Relations
Cleveland Fanners Club
Council on World Affairs
Financial Public Relations Association
Kiwanis, Rotary and Exchange Clubs •
(Cleveland, Cincinnati and Pittsburgh)
National Association of Bank Auditors and
Comptrollers (local and national)
National Association of Supervisors of State Banks
National Office Management Association
Ohio, Kentucky, Pennsylvania and West Virginia
Bankers Associations
Ohio Chamber of Commerce
Robert Morris Associates (national and local)
Society of Security Analysts
World Trade Council
By their attendance at such meetings the officers and other repre
sentatives were afforded an opportunity to (l) become better acquainted
with the bankers and businessmen within the Fourth D istrict, as well as
many outside the d istr ic t, (2) discuss bank operations and current busi
ness trends and conditions with them, and (3) review Federal Reserve
System functions«
SPEAKERS FOR BANKER AND BUSINESS MEETINGS
During the year, in response to invitations received, th is bank's
officers and economists appeared as speakers or panel members at 160
meetings and conferences sponsored by banker, business and service or
ganizations; these meetings were attended by approximately 16,000 peo
p le. Addresses covered a wide range of subjects including "The Respon
s ib ilitie s and Functions of the Federal Reserve System," "Operations of
Federal Reserve Bank of Cleveland," "Business Conditions," "Executive
Development," and "Bank Credit."
-1 9 RESEARCH DEPARTMENT
Senior members of the research department, because of the very nature
of their work, were called upon frequently during the year to speak at
bank-sponsored, business group and service club meetings. Such assignments
were of a bank and public relations nature and were in addition to the in
dividuals1 regular economic and sta tistic a l studies and reports.
Continuous close contact with banks and industrial and commercial con
cerns in the d istr ic t was another important function of the members of the
research sta ff in their work of compiling authentic, comprehensive and
practical information about conditions and trends in banking, business*'
trade and agriculture in the Fourth D istrict. In summary foua, much of the
data reached the general public through the following publications and
news releases of the bank:
Monthly Business Review
Weekly Business Trends
Weekly Condition Report of the 19 Largest Banks in
Cleveland, Cincinnati and Pittsburgh
Monthly Changes in Time Deposits in 12 C ities
Monthly Changes in Bank Debits in 31 C ities
Monthly Changes in Consumer Instalment Credit
at 25 Member Banks
Weekly Department Store Sales by C ities
Monthly Department Store Sales in 11 C ities
Monthly Changes in Sales, Credits, and
Collections of Department Stores
Monthly Changes in Sales by Departments
Monthly Changes in Inventories by Departments
Weekly Comments on Cleveland Business Activity
Monthly Agricultural Bulletin
LIBRARY SERVICE
The bank maintains special libraries at the main o ffice and P itts
burgh branch. Together they contain more than 8,000 bound volumes, and
nearly 60,000 pamphlets and magazines on banking, economics, finance,
and related subjects. In addition more than 200 newspapers and other
periodicals are received regularly. This source of authoritative and cur
rent information was used by approximately 340 different banlcs, business
concerns, students and others during 1953. In al.l, more than 1,000 re
quests for reference material were answered. This extension of the bank’s
library service to banks, schools and business concerns is of practical
and tangible benefit to the above groups.
Some of those served during the year were:
American Radiator and Standard
Pittsburgh, Penna.
Sanitary Supply Corporation
Amei’ican Steel & Wire Division of United
Cleveland, Ohio
States Steel Corporation
Cleveland Twist D rill Company
Cleveland, Ohio
-20Clevite Corporation
Diamond Alkali Company
Gimbels Department Store
Gulf Oil Corporation
Industrial Advertising Research Institute
Koppers, Inc.
Mine Safety Appliances Company
National Machine Tool Builders Association
Pittsburgh Chamber of Commerce
Pittsburgh Consolidation Coal Company
Pittsburgh Plate Glass Company
Planters Bank & Trust Company
Sharon Steel Corporation
Squire, Sanders & Dempsey
The Cleveland Press
The First National Bank of Oil City
The Hanover Bank
The Third National Bank of C ircleville
Cleveland, Ohio
Cleveland, Ohio
Pittsburgh, Penna.
Pittsburgh, Penna.
Cleveland, Ohio
Pittsburgh, Penna.
Pittsburgh, Penna.
Cleveland, Ohio
Pittsburgh, Penna.
Pittsburgh, Penna.
Pittsburgh, Penna,
Hopkinsville, Ky.
Sharon, Penna,
Cleveland, Ohio
Cleveland, Ohio
Oil City, Penna,
New York, New York
C ircleville, Ohio
ANNUAL REPORT
The Annual Report of: th is bank for the year 1952 followed the
format adopted two years before. The report was given to every employee
of the bank, and approximately 8,000 copies were mailed to a ll banks,
public and college lib raries, and a number of business executives in the
Fourth Federal Reserve D istrict. I t also was sent to many others in
terested in the operations of th is bank.
This report featured an "Economic Review of 1952," discussions of
"Recent Business Developments" in each of the territories served by the
main o ffice and the Cincinnati and Pittsburgh branches, a rticles about
"Fourth D istrict Agriculture and the Federal Reserve," and "Advances to
Member Banks," as well as sketches of the work of several of the depart
ments in the bank.
CURRENCY EXHIBIT
Fifteen banks in Ohio, Pennsylvania and Kentucky displayed th is
bank's currency exhibit during 1953 in connection with anniversary cele
brations and other special events.
This exhibit is composed of various issues of fractional currency,
Federal Reserve notes and bank notes, silv er certifica tes, national bank
and United States notes, and other kinds of currency, including a number
of specimens of counterfeit currency. I t has attracted considerable
in terest of bank customers wherever i t has been shewn. The entire cost
of shipping the exhibit was absorbed by th is bank. (See Exhibit G for a
complete l i s t of the banks which used the currency exhibit during 1953.)
-21AMERICAN INSTITUTE OF BANKING
The American Institute of Banking continued to have the support of
th is bank1s officers and employees, 607 of them being enrolled as mem
bers of the Cleveland, Cincinnati and Pittsburgh chapters in 1953* A to
ta l of 60 employees were registered in 20 A.I.B. educational classes*.
A senior member of the personnel department at the main office
served as general secretary of the Golden Anniversary national convention
of the Institute held in June 1953 in Cleveland. Delegates and other
v isitors to the convention from other Federal Reserve banks were guests of
th is bank at a special dinner, and several distinguished persons in at
tendance at the convention were entertained at luncheons at the bank.
Several of the bank's officers and employees were (l) officers and
members of the board of governors of the local A.I.B* chapters, (2) chair
men and members of various committees, and ( 3) lecturers in A.I.B. educa
tional courses..,
F a cilities at the main office and the two branches were often made
available to local A.I.B. chapters for committee meetings and educa
tional activities*
HIGH SCHOOL AND COLLEGE RELATIONSHIPS
Close relationships were continued in 1953 with high schools and
universities throughout the d istr ic t. An increasing number of teachers
and students v isited the main office and branches to view the operations
of various departments and to be informed of the purposes and functions
of th is bank and the Federal Reserve System. Representatives of the
bank also accepted invitations to speak before various school and teacher
groups on banking and business topics and personnel subjects. The movie
"A DAI AT FEDERAL RESERVE BANK OF CLEVELAND" continued to be a popular
audio-visual presentation to high school and college classes. This film
was shown to approximately 52,000 students during the year.
EXPENSES OF BANK AND PUBLIC RELATIONS PROGRAM - 1953
The expenses of bank and public relations a ctiv ities at the Train
o ffice and branches, exclusive of salaries of officers and employees,
for the period January 1 through November 30, 1953, amounted to approxi
mately §69, 000. This amount included such items as circular le tte r s,
printing, stationery, and other miscellaneous items not necessarily con
sidered an integral part of a public relations program. Major items of
a bank and public relations nature included in the to ta l were traveling
expenses, bankers conference meetings, luncheon meetings, and entertain
ment of special groups as guests at the bank, as well as expenses in ci
dent to several directors functions.
-22COHCLUSION
The challenge of executing a bank and public relations program at a
Reserve bank is unique in that under the broad enabling provisions of the
Federal Reserve Act this bank combines the functions of a central bank
■with those of a service in stitu tion . The various a ctiv ities which have
been summarized in th is report have a ll been designed, "without exception,
to meet th is challenge as well as to accomplish the System’s and th is
bank’s objectives recited in the introductory section of this report*
I t is d ifficu lt to evaluate a bank and public relations program at
the end of a given period on an accurate and objective basis* The array
of sta tistic s which are included in a report, representing the volume of
work carried on, is not in it s e lf a true measure of the ju stification or
effectiveness of a program* Furthermore, unlike other organizations^
there is no accurate business measuring-stick to substantiate findings of
alleged effective operations for the period* A recital of the comments
made by, or letters received from various persons or groups who have par
ticipated in these a ctiv ities in one way or another is lik ely to give the
impression of self-aggrandizement or self-dealing in terest in the results
of the program, and, therefore, they constitute no part of th is summary*
In an effort to be as objective as possible, an appraisal of the
bank and public relations program, carried on by this bank during 1953
would indicate that i t covered a variety of different a c tiv itie s, a ll de
signed to cariy out the System*s, as well as th is bank*s objectives for
a bank and public information and public relations program. I t is sub
mitted that the tota l cost of these programs is nominal when compared to
the number of persons reached or benefited directly or indirectly by them.
An evaluation of these a c tiv itie s, based on any such standards as might
reasonably be used would indicate that progress has been made in accom
plishing these objectives*
The general public, and particularly teachers and students in high
schools and colleges, businessmen, and other leaders in civic and govern
mental lif e have evidenced considerable in terest in recent months concern
ing the functions of a central bank, and the statutory credit and monetary
respon sibilities of the Federal Reserve System* With more and more empha
s is in a ll quarters being placed upon the need and desire for the mainte
nance of economic sta b ility and a rising standard of liv in g , i t is a ll the
more important that the public have a clear understanding of the hows,;
whys, and wherefores of the System’s statutory resp on sib ilities, where i t
f it s into th is economic picture, and how a central bank operates* These
a c tiv itie s aid in bringing about a better understanding of the p olicies
and operations of the System.
At th is juncture, an evaluation of past programs would indicate that
considerable progress has been made in recent years along these lines,'
but in the vernacular, "the surface has only been scratched," and there
a
x
63
H
>
BANKERS CONFERENCE: MEETINGS
SPONSORED BY
F E D E R A L RESERVE B A N K OF C LEV E L A N D
1953
Federal Reserve
Repre sentative s
in Attendance
Attend ance
Area and Place
of Meeting
Counties
Covered-
1. March 17
Henry-Defiance
County Bankers
Association
Kettenring Golf Club
Defiance, Ohio
Defiance
Fulton
Henry
Paulding
Williams
*W.
*R.
E.
*F.
D.
Fulton
Clouse
Fricek
Kiel
Robinson
94
2. March 18
Sandusky Area
Bankers Conference
Plum Brook Country
Club
Sandusky, Ohio
Erie
Hancock
Ottawa
Sandusky
Seneca
*W. D. Fulton
*R. R. Clouse
E. F. Fricek
*F. o. Kiel
D. c. Robinson
80
3. March 19
Mansfield Area
Bankers Conference
Mansfield- Leland
Hotel
Mansfield, Ohio
Ashland
Knox
Richland
*W.
*R.
*L.
E.
D.
D.
R.
M.
F.
C.
Fulton
Clouse
Hostetler
Fricek
Robinson
70
4. March 24
Newark Area
Bankers Conference
Moundbuilde rs
Country Club
Newark, Ohio
Coshocton
Delaware
Fairfield
Licking
Perry
*W.
*R.
E.
*F.
D.
D.
R.
F.
O.
C.
Fulton
Clouse
Fricek
Kiel
Robinson
96
Date
*
P a rtic ip a te d
in p r o g r a m
D.
R.
F.
O.
C.
BANKERS C ONF E R E N C E MEETINGS
SPONSORED BY
F E D E R A L RESERVE B A N K OF C L E V EL AND
1953
Federal Reserve
Repre sentatives
in Attendance
Area and Place
of Meeting
Counties
Covered
5. March 25
Canton Area
Bankers Conference
St. Francis Hotel
Canton, Ohio
Carroll
*W. D. Fulton
Portage
*R. R. Clouse
Stark
*L. M. Hostetler
Tuscarawas E. F. Fricek
D. C. Robinson
6. March 26
Wooster Area
Bankers Conference
Wooster Country Club
Wooster, Ohio
Holmes
Medina
Wayne
*W.
*R.
*L.
E.
D.
D. Fulton
R. Clouse
M. Hostetler
F. Fricek
C. Robinson
104
7. Nov. 18
Zanesville Area
Bankers Conference
Zanesville Country
Club
Zanesville, Ohio
Guernsey
Monroe
Morgan
Muskingum
Noble
Perry
*R.
*L.
H.
E.
R.
M.
E.
V.
110
8. Nov. 19
Salem Area
Bankers Conference
Salem Golf Club
Salem, Ohio
Carroll
Columbiana
Jefferson
*D.
*R.
*L.
H.
E.
S. Thompson
R. Clouse
M. Hostetler
E. J. Smith
V. Denton
Date
*
P a rtic ip a te d
in p r o g r a m
Clouse
Hostetler
J. Smith
Denton
Attend
ance
106
85
AREA BANKERS CONFERENCES
Officers and d ire cto rs o f banks th ro u g h o u t th e
F o u r th D is tr ic t p a rtic ip a te d in eight A rea B a n k e rs
C o n feren ces sponsored by lo ca l b an k s, b a n k ers’ o rg a n iz a tio n s and c le a rin g house a sso cia tio n s in
co o p e ra tio n w ith th e F e d e ra l R eserv e B a n k o f
Cleveland.
Top:
S p e a k e rs on p ro g ra m a t th e
B a n k e r s C o n feren ce in N ew ark , O hio, M a rch 2 4 ,
1953.
B o tto m :
A g en era l view o f p a r t o f th e
g ro u p of b a n k ers who a tten d ed th e N ew ark con ferenee.
r
n
B a n k e r s
C o n f e r e n c e
Carroll, Columbiana and Jefferson Counties
SalemGolf Club
Salem, Ohio
Thursday, November 19, 1953
P r o g r a m
3:30 p.m.
CHAIRMAN
---- L. H. COLLEY, President
The First National Bank of Salem, Salem, Ohio
MODERATOR — ROGER R. CLOUSE, Vice President and Secretary
Federal Reserve Bankof Cleveland
Remarks by—
DONALD S. THOMPSON, First Vice President
Federal Reserve Bankof Cleveland
"THE PYRAMID OF BANK CREDIT"
MERLE HOSTETLER, Director of Research
Federal Reserve Bankof Cleveland
Leaders inInformal Discussion
MARK KLINGENSMITH, Secretary & Cashier
TheUnionBankingCompanyof Columbiana
Columbiana, Ohio
C. L. LONG, Vice President
The Peoples National Bankof Steubenville
Steubenville, Ohio
C. H. POOLE, President
The National ExchangeBank&Trust Company
Steubenville, Ohio
G. E. STARKEY, President
ThePotters Bank&Trust Company
East Liverpool, Ohio
E. M. STEPHENSON, President
The FarmersNational Bankof Salem
Salem, Ohio
6:00 p.m. - Social Hour
6:30 p.m. - Dinner
m
X
X
1— 4
CO
H
CO
ANNUAL
FARM
TOUR
Northeastern Ohio Bankers Association
September 10, 1953
in cooperation with
Agricultural Extension Service
Soil Conservation Service
Production and Marketing1 Administration
of
Ashtabula, Geauga, Lake and Trumbull Counties
and
Federal Reserve Bank of Cleveland
A N N U A L
FARM
TOUR
Northeastern Ohio Bankers Association
September 10, 1953
Harper Endsley - Chairman
11:00 A, M. - Assemble - Ted Humphries & Son
Williamsfield, Ohio
Location - 2 mi. west and 1/2 mi, north of
Junction Routes 322 and 7
The operators of this grassland dairy farm produce over
350,000 lbs. of milk annually with a total cash outlay of $800
to |l,000 for purchased feed— largely protein concentrates,
12s00
- Luncheon - Congregational-Presbyterian Church
Kinsman, Ohio
"What1s Happening to Northeastern Ohio Farms?"
John Strausbaugh - County Agent
Victor Logan - Farmer & PMA Chairman
Lynn J. Morey - Banker
Duane Bosworth - S.C.S.
Claude I. Hummel - Moderator
2s00 P. M. - Howard Meikle
Gustavus, Ohio
Location - On State Route 8 7 - 2 1/2 mi, west of Inter
section of 87 and 7
This 180-acre dairy-beef farm maintains a 15-cow dairy
herd, a herd of 30 beef cows with approximately 25 feeders
marketed yearly,
3:00 P. M. - Walter I. Miller & Son
Gustavus, Ohio
Location - 1 mi. south and 1 l/k mi. west
Intersection Routes 90 and 87
A 600-acre grain farm that only a few years ago was
largely covered with poverty grass, goldenrod and black
berries. Lime, fertilizer and wise management made it
possible to harvest over 90 bu. per acre on 65 acres of
oats and 32 bu. per acre of wheat on 127 acres this year.
Present prospects are for am excellent crop on 178 acres
of com.
-1 -
H u m p h rie s F a r m
This dairy farm consisting of 236 acres is operated as a father and son
partnership. A herd of approximately 30 head of dairy cows is the principal
enterprise. A relatively small proportion of the 150 acres of cropland is
devoted to cultivated crops as indicated by 15 acres of com and 15 acres of
oats harvested this year. The remainder of the cropland is utilized for the
production of hay and pasture which, together with the permanent pasture, pro
vides a major portion of the feed required. The total cost of purchased feed,
largely protein concentrates, seldom exceeds $1,000 per year, or less than half
the annual feed expenditure on most dairy farms with herds of comparable size.
A high rate of production per cow is attained, as evidenced by annual miIk
sales of 350,000 pounds or more. The income from the sale of milk is supple
mented by a return of #2,000 to $3,000 from the sale of beef and veal.
The operators are not only efficient producers of dairy feed and milk, but
accomplish the work associated with the operation of this dairy farm with a
minimum of hired labor. Cost of hired labor seldom exceeds $200 per year.
Plans are being considered for improving the facilities for handling the
herd so as to reduce the labor requirement, thus permitting further expansion
of the herd.
Meikle Farm
A dairy herd of 15 cows and a beef herd of 30 cows constitute the two
principal enterprises on this 180-acre farm, of which approximately 100 acres
are utilized as cropland. This year the operators of this unit, Mr. Meikle
and his son, harvested it acres of barley, 13 acres of oats and have 28 acres
of corn for harvest. The remainder of the cropland has been devoted to the
production of hay and rotated pasture which, together with the forage obtained
from the permanent pasture, provides the bulk of the feed needed for the dairy
and beef herds.
The beef enterprise consists of 30 beef cows, 25 young calves and 26
yearling feeders which are being finished for market. Hay and pasture supply
a major portion of the feed requirement in this dairy-beef operation, much the
same as on the Humphries farm.
The operators find the dairy-beef combination quite satisfactory on their
farm. They question, however, the advisability of a complete change to beef
cattle production. The monthly income from the dairy herd provides a regular
source of income to meet current expenses, whereas the income from the beef
enterprise is available only when the cattle are ready for market.
The total investment in equipment is estimated to be $L5,000, or equiva
lent to about $150 per acre of cropland.
-2 -
M i l l e r F arm
This farm business is unusual in that it includes no livestock enterprise.
Approximately 1*00 acres of this 600-acre father-and-son operated unit are uti
lized to produce corn, oats, wheat and clover seed.
Only a few years ago a considerable part of the present unit was covered
with poverty grass, goldenrod and blackberries. Through liberal application
of lime and fertilizer and careful management, much of the cropland has been
built to a high state of productivity. The sixty-five acres of oats harvested
this season yielded over 90 bu. per acre and a yield of 32 bu. per acre was
obtained from 127 acres of wheat. Crop yields of those proportions are parti
cularly significant in view of state average yields for the current season of
1*2 bu. per acre of oats and 29 bu. per acre of wheat. On the basis of present
prospects the yield from the 178 acres of corn will compare favorably with the
state average indicated August 1 of 1*1 bu. per acre.
The machinery required is estimated to represent an investment of $25,000,
or equivalent to $60 per acre of cropland.
Changes in Northeastern Ohio Agriculture
Significant changes occurred in the size and composition of the farm enter
prises on many northeastern Ohio farms in the five years ended in 1950. In that
period the trend toward fewer and larger farms, fewer and somewhat larger enter
prises and an expansion in the use of mechanical power advanced at an accelerated
rate. Casual observation suggests that the trend toward larger farms with fewer
enterprises and more mechanical equipment is continuing but at a slower pace than
in the five years immediately following the war.
Much of the data presented in the following tabulations were taken from the
Bureau of Census reports. Unfortunately, census data for commercial farms and
suburban, or subsistence, farms are not segregated. As a result the data may not
reveal the full extent of the change which occurred, particularly with respect to
the commercial farms.
1.
The Number of Farms Has Declined - The decline in number of farms
reported was greater percentagewise ; in the four northeastern Ohio counties
(Ashtabula, Geauga, Lake and Trumbull) than for the state.
Number of Farms
Ashtabula
Geauga
Lake
Trumbull
Ohio
Source: Bureau of Census
191*5
1*,1*07
2,501*
1,6 0 8
U,i*50
220,575
1950
3,81*3
1,911
1 ,1 7 8
3,509
199,359
% Change
-13
-21*
-27
-2 1
-1 0
2.
The Average Size of Farms Has Increased - The average size of farms is
larger now than in 1920, except in Lake and Trumbull counties.
Average Size of Farm
Ashtabula
Geauga
Lake
Trumbull
Ohio
Source: Bureau of Census
1920
(acres)
79
90
65
81*
92
19l*5
(acres)
82
83
53
67
99
1950
86
93
52*
7k
105
3.
A Substantial Decline in Humber of Farms Selling Dairy Products Has
Occurred - The decline in number of farms selling dairy products has paralleled
or exceeded the decline in number of farms.
Farms Reporting Sale of Dairy Products
191*5
Ashtabula
Geauga
Lake
Trumbull
Ohio
1950
(Number)
(Number)
1,962
1,01*9
21*1*
1,693
131,175
1,667
808
176
1,31*1*
108,950
% Change
-15
-23
-28
-21
-17
Source: Bureau of Census
1*. Quantity of Whole Milk and Cream Sold - Although there has been a sub
stantial decline in the number of farms selling dairy products, the quantity of
■whole milk and cream sold has shown less change.
Pounds of Whole Milk and Cream Sold
19i*5
1950
% Change
(Million Pounds)
Ashtabula
Geauga
Lake
Trumbull
Ohio
Source:
111
72
6
80
3,665
111*
65
6
77
3,619
+3
-10
-0-1*
-1
Bureau of Census
5« Fewer Farms Selling Poultry Products - Although the decline in number
of farms selling poultry products was greater in the four northeastern Ohio
counties than for the state as a whole, poultry continues to be the second most
important source of income with the possible exception of Lake County -where fruit
income occasionally exceeds that obtained from poultry.
F arm R e p o r tin g
S a le
o f P o u ltry
191*51950
(Number)
Ashtabula
Geauga
Lake
Trumbull
Ohio
Source: Bureau of Census
2,30k
1,1*01*
806
2,037
ll*9,387
P ro d u c ts
% Change
(Number)
1,601
967
i|2|3
1,2(51
119,331
-30
-31
4*5
-29
-20
6.
More Farms Use Mechanical Power - The number of tractors on north
eastern Ohio farms increased substantially from 19li5 to 1950, but the rate of
gain was only about half as great as for 12ie state as a whole.
Ashtabula
Geauga
Lake
Trumbull
Ohio
Source: Bureau of Census
Number of Tractors on Farms
191*5
1950
2,678
3,161*
1,1*72
1,783
1,187
1,326
2,2l*5
2,680
130,1*86
182,571
% Change
+18
+21
+12
+19
+1*0
7.
Gross Farm Income Improved Through 1951 - The estimated gross cash
farm income per acre of farm land in the four counties and for the state as a
whole continued to advance through 1951. The estimated gross income per acre
of farm land in that year was higher than in any previous year and was approxi
mately three tines that of the late ’Thirties. O fficial estimates have not been
released for la st year. However, i t seems probable that 1951 may have been the
peak year so far as gross cash income was concerned.
Estimated Gross Cash Income Per Acre of Farm Land
— Dollars per acre—
1950
1938-39
191*5
195:
Ashtabula
1*6
15
27
37
Geauga
28
1*8
13
U3
60
61
112
Lake
35
Trumbull
1*2
13
27
31*
Ohio
H*
1A
51
35
Source: Department of Agricultural Economics, Ohio State University
8.
Farm Land Prices Advanced - The improvement in farm income from 19U5
to 1951 was reflected in higher farm land prices as shown in an accompanying
tabulation of the average value per acre in the four counties and for the state
as a •whole. The average value in a ll cases was well above the 1920 peak.
A v erag e
V a lu e
1920
Ashtabula
77
Geauga
90
Lake
236
Trumbull
95
Ohio
113
Source: Bureau of Census
P e r A cre
o f F arm
Land
—Dollars per acre—
1950
19U5
111
65
107
175
308
219
80
11*2
136
85
The average price per acre of farm land a year ago was reported to be Better
than a third higher than in 1950. Some weakness in Ohio farm land prices has
been evident since July of la st year, and they are currently reported to average
about 3% below a year ago.
-6 -
m I I I l l! rrrTTnVrfT H -n f rf*r~ry r-n r f- ■£
P R O G R A M
Bankers Agricultural Meeting and Tour
Brooke, Hancock, Marshall, Ohio, Tyler and Wetzel Counties
Thursday, September
17 , 1 9 5 3
IsOO P. M.
Louis Yaeger — Chairman
1:15 P.M. — Leave Fort Henry Club —Wheeling, West Virginia
Bus tour to outstanding farm
—Arthur Fisher —
DairyFarm
4:00 P.M. —Fort Henry Club
“Profitable FarmManagement Practices”
R. H.Boal
Agricultural Economist
West Virginia University
“Recent Developments inDairyFarming
that Affect Capital Requirements"
G. Heebink
ExtensionDairyman
West Virginia University
6:00
P.M. —Dinner
7:00
P.M. —“Useof Credit inPart-Time Farming”
G. E. Toben
Associate Professor
West VirginiaUniversity
FO L D E R S
A T
D E S C R IB IN G
F E D E R A L
M O T IO N
R E S E R V E
P IC T U R E S
BA N K
O F
A V A IL A B L E
C L E V E L A N D
“A DAY AT
I
PICTURES
FEDERAL RESERVE DANK
OF CLEVELAND
A SOUND MOTION PICTURE
ERVE BA NK
ELAND
roups
between
osion.
SHOWING THE OPERATIONS
OF THE
4th District Reserve Bank
I PICTURE
d, please write or call
rve Bank of Cleveland
Ohio
>0
E BANK
A DAY AT
0p n
eA
FEDERAL RESERVE BANK
OF CLEVELAND
Two visitors inquiring about a
tour through the bank
1
“Let us join these gentlem en who are
about to make a trip through the bank.”
This quotation from the script sounds
the theme of the film, “A Day at Federal
Reserve Bank of C leveland.”
Through the ey e of the cam era w e
see operations of the bank as view ed
by hundreds of bankers, businessmen,
co llege and high school students and
other interested groups who visit our
three offices each year.
You are cordially invited to see this
film which shows how the Federal Reserve
Bank of C leveland serves banking, indus
try, agriculture and commerce in the
Fourth Federal Reserve District.
A panorama of Fourth District activity opens the
picture, fading quickly to a map of the United
States showing the twelve Federal Reserve dis
tricts. The first scene of the operations of Federal
Reserve Bank of Cleveland is the opening of the
great vault door weighing one hundred tons, the
largest door of its kind in the world.
With the bank officially open, a flashback to
the main lobby shows the entrance of two visitors
whom we follow on their tour through the bank.
Interesting scenes unfold as the tour is made.
The check collection department is shown with
its batteries of sorting and tabulating machines
used to speed the operations. The fiscal agency
department features business machines which are
automatically inscribing and canceling Savings
Bonds, and performing numerous other jobs for
Uncle Sam.
In the cash department, currency moves through
the various stages of sorting, counting and pack
aging.
And so through the eye of the camera the various
operations of the bank are shown until at the end
of the day the huge vault door is slowly closed.
Produced b y ........Officers and Employees of the
Federal Reserve Bank of Cleve
land
Editing and
Sound b y ..............Cinecraft Productions, Inc.,
Cleveland, O.
Type......................16mm—Sound—Black and White
Running time........22 minutes
Suitable for..........Bankers and Business Groups,
Service and Women's Clubs,
Church and Community Groups,
High Schools and Colleges
Cost....................... No charge
If a booking is desired, please write or call
Federal Reserve Bank of Cleveland
Cleveland 1, Ohio
CHerry 1-2800
“A DAY AT
FEDERAL RESERVE BANK
OF CLEVELAND’’
A SO U N D M O T IO N
PICTURE
S H O W IN G THE O P ER A TIO N S
O F THE
4th District Reserve Bank
S ee
* 7 6 e 4 e a t e i S u tU C cv i S c e*te&
i* t t& e 'W ta u ie
.- .I
... “A DAY AT FEDERAL RESERVE BANK OF CLEVELAND’’
w ** \ TZ
I
. m
P
Checks are sorted into 24 pockets speedily and
efficiently in this modern proof machine
1 1
* trn m iii
Most incoming checks are photographed as protection if
any should be lost later in transit
The purchaser’s name and complete registration informotion are printed on savings bonds on this machine
* ' ,
ji
;j »uii«mis»hbs
||
C le v e la n d
Pittsburgh
This bank is the reservoir for coin which is stored in this
vault for everyday and emergency needs
Cincinnati
The Federal Reserve Bank of Cleveland has offices in
these three modern buildings
Operator sorts currency and feeds it into this unique
machine, which automatically counts each bill
WOOuctS
Member bank securities held in safekeeping are filed in
locked metal drawers in the vault under joint control
Safety is the watchword and constant practice makes for
skilled marksmen
Economists collect and interpret business statistic! and
analyze business trends
To The Bankers in The
Fourth Federal Reserve District. . .
Asaservicetobankers,theFederalReserveBank
of Clevelandhas establisheda library of films per
taining to Federal Reserve Bank operations and
related subjects.
These films are available free of charge to any
onerequestingtheloanof thefilms for showingin
their communities.
Motion pictures are playing an important part
in the field of education andin recent years have
beenutilizedmore andmore as a means of giving
factual informationtothe public.
TheFederal ReserveBankof Clevelandhaspro
ducedtwofilms of special interest tothepeopleof
theFourthFederal ReserveDistrict. Inaddition, it
haspurchasedorleasedfilmswhichmaybeborrowed
at nocost. Alist of thesefilmswithabrief descrip
tionof eachappearsontheinsideof thisfolder.
Other films onbankingandrelatedsubjects may
be obtained froma number of sources. Two of
these sources particularly recommended are:
Public Relations Council
AmericanBankers Association
12 East 36thStreet
NewYork16, NewYork
Financial Public Relations Association
231 SouthLaSalleStreet
Chicago4, Illinois
We hope that bankers and others will take
advantage of the opportunity to use these motion
pictures fromtime to time.
FEDERAL RESERVE BANK OF CLEVELAND
for
SOUND MOTION PICTURES
Available at
FED ERAL R ESERV E BANK
o f C le v e la n d
Suitable for. . .
Bankers, Business and Farm Groups
Service and Women's Clubs
Church and Community Groups
High Schools and Colleges
If a booking is desired, please write or call
Federal Reserve Bank of Cleveland
Cleveland 1, Ohio
CHerry 1-2800
1.
A DAY AT FEDERAL RESERVE BANK
OF CLEVELAND
Through the eye of the camera you see the
operations of the bank as viewed by hundreds of
bankers, businessmen, studentsandothers whovisit
our offices eachyear. The filmopens with a pano
rama of FourthDistrict activity, followedbyvisits
throughoperatingdepartmentsof thebank, includ
ingtheCheckCollectionandCashdepartments.
ProducedbyFederal Reserve Bankof Cleveland.
Black and white—sound
16 mm.
20 minutes
2. SOIL CONSERVATION PAYS
Based on the theme that business in a farm
communitythrives indirect proportionto the pro
ductivityof the soil andthe know-howof the men
who till it, this filmillustrates the proper use of
landandthe needfor goodfarmpractices.
Attention is called to the importance of the
country bank in such a community in extending
agricultural credit. Thepart farmers’ organizations,
agricultural schools and bankers’ associations have
in this programis shownin the picture.
ProducedbyFederal Reserve Bank of Cleveland.
Color—sound
16 mm.
18 minutes
4.
THE FEDERAL RESERVE BANK AND YOU
This filmshows a Federal Reserve bank in op
erationandexplains howthe activities of acentral
banking systemtouch our everyday lives.
Produced by the Federal Reserve Bank of Min
neapolis.
Black and white—sound
16 mm.
22 minutes
5. U. S. TREASURYCOINAGE AND PRINTING OF MONEY
(A) "THE MINT” shows Uncle Sam’s newest
coinage plant at San Francisco. It portrays the
various steps in the manufactureof coins fromthe
original clay model to the stamping, annealing,
polishing, checking and counting of the finished
product.
(B) "U. S. TREASURY” depicts operations at
the Bureau of Engraving and Printing in making
paper money, fromthe artist’s design through the
stages of engraving of the plates. It shows the
printing, inspection, numberingandstoringof the
moneyinvaults. It alsoshowswhat happenstoold
worn-out bills andsomeof themethodsof identify
ingcounterfeit money.
Produced byColumbia Pictures Corp.
Black and white—sound
16 mm.
20 minutes
6. THE SECRET SERVICE STORY
3. THE FEDERAL RESERVE SYSTEM
An excellent portrayal of the historical back
ground of the systemand the fundamental points
of theFederal ReserveAct asit originallywaspro
posed. It explains the three principal ways the
reserve banking systemprovides financial stability.
It alsodemonstrates the flexibilityof the systemby
showinghowit has beenadaptedtomeet the chal
lenge of changing economic conditions.
ProducedbyEncyclopedia Britannica Films, Inc.
Black and white—sound
16 mm.
22 minutes
This filmopensat theSecret Servicepistol range
inWashington, D. C. Methodsofdetectingcounter
feit moneyare explainedin detail.
U. S. Treasury experts contrast the portraits of
the presidents on genuine notes with those on
counterfeit bills, and point out discrepancies in
counterfeits in check letters, serial numbers, seal
andgeneral appearance of the bill.
Produced by Aetna Casualty & Surety Co. in
cooperationwith theU. S. Secret Service, Treasury
Department.
Black and white—sound
16 mm.
18 minutes
"SOIL
CONSERVATION
PAYS”
"S O IL
C O N S E R V A TIO N
PAYS”
Farmers, bankers and agricultural tech
nicians participate in a field meeting to
discuss more effective methods of conserv
ing and using the soil.
Produced by . . . Officers and employees of the Fed
eral Reserve Bank of Cleveland
Photography and
Script b y .. . . Officers and employees of the Fed
eral Reserve Bank of Cleveland
Editing and
Sound by . . . Cinecraft Productions, Inc., Cleve
land, Ohio
Type.................. 16 mm.—Sound—Color
Running Time . . Eighteen Minutes
Suitable for . . . Farmers, civic, bankers and business
groups, Service and Women's clubs,
Church and Community Groups,
High Schools and Colleges
Cost.................. No charge
If a booking is desired, please write or call
Federal Reserve Bank of Cleveland
Cleveland 1, Ohio
Telephone: CHerry 1-2800
Aerial view showing contrast between
contour farming and wasteful erosion.
A COLOR SOUND MOTION PICTURE
PRODUCED BY
FEDERAL RESERVE BANK
OF CLEVELAND
"SOIL
CONSERVATION
PAYS”
A sound motion picture in color (16 m m 18 minutes) entitled "Soil Conservation Pays"
has been produced by the Federal Reserve
Bank of Cleveland and is available to inter
ested groups without charge.
This film traces the progress of improved
farm practices in the Fourth Federal Reserve
District and the benefits derived from the ap
plication of modern agricultural "know-how"
and soil conservation methods.
The picture show s how coop eration be
tween the farmer, agricultural technicians and
the country banker makes for better farming
through efficient operating methods and sys
tematic conservation of soil productivity to
the mutual benefit of producer and consumer.
"Soil Conservation Pays" is divided into
four parts: The Banker and the Farmer; Ero
sion Steals Topsoil; Fertility of Land is Im
paired, and Education and Research in Soil
Improvement Methods.
Film Available Without Charge
Copies of the film are available, free, for
showing to farm and civic groups and clubs,
bankers and business organizations, service
and women's clubs, church, community, vet
erans and other organizations, associations
and clubs, and to high schools, colleges and
other institutions.
How to Obtain Film
To arrange for a showing of this movie
interested groups are invited to write or tele
Crop rotation and contour cropping hold
the topsoil in place.
phone the bank at its main office in Cleveland
or at its branches in Cincinnati or Pittsburgh.
Other Films Available
The Federal Reserve Bank of Cleveland has
five other films available for showing. Their
titles are:
A Day at Federal Reserve Bank of Cleveland
The Federal Reserve System
The Federal Reserve Bank and You
U. S. Treasury —Coinage and Printing of
Money
The Secret Service Story
Aerial view shows an example of how
farms are acquiring the "new look" by
adopting the soil-saving design of contour
strip farming.
PI
X
X
5
H
D
B U S IN E S S
TREN D S
BRO AD CASTS
1953
Date
Subject
Speaker
Jan. 3
"Is Research Agriculture's New Frontier?"
C. I. Hummel
Jan. 10
"The 1953 Business Forecasts"
F. O. Kiel
Jan. 17
"What's Happened To Farm Exports?"
R. G. Hoover
Jan. 24
"Patrolling The Business Front"
L v M., Hostetler
Jan. 31
"Business Prospects After Rearmament"
A. T. Cutler
Feb. 7
"The Downtrend In Farm Prices"
C. I. Hummel
Feb. 14
"The New Consumer Price Index"
F. O. Kiel
Feb. 21
"Demand For Credit In 1953"
D. S. Thompson
Feb. 28
"Gold Outward Bound"
A. T. Boanas
Mar. 7
"The Big Business Of Local Governments"
A. T. Cutler
Mar. 14
"Alternative Views Of The Business Boom"
L. M
Mar. 21
"Impact Of Agricultural Imports"
C. I. Hummel
Mar. 28
"A Perking Up In Commodity Prices"
A - T. Cutler
Apr. 4
"How's Business?"
F. O. Kiel
Apr. 11
"Food Shortage"
R. G. Hoover
Apr. 18
"Tomahawks In Our Spare Time?"
L. M. Hostetler
Apr. 25
"National Product At A New Pinnacle"
A. T. Cutle r
May 2
"Housing Prospects"
D.
May 9
"How People Spend"
A. T. Boanas
May 16
"Whither Defense Spending?"
F. O. Kiel
May 23
"Too Much Milk?"
C. I. Hummel
May 30
"The Economic Setting--In Absentia"
L. M. Hostetler
s.
Hostetler
Thompson
B U S IN E S S
TREN D S
BRO AD CASTS
1953
Date
Subject
Speaker
June 6
"What The Business Indicators Are Showing"
A. T. Cutler
June 13
"A Higher Price For Money"
A. T. Boanas
June 20
"The Automobile Market"
T. E. Ormiston, Jr
June 27
"The Shrinkage In Farm Income"
C. I. Hummel
July 4
"No Freedom From Headaches"
L. M., Hostetler
July 11
"Underneath The Trade Totals"
A. T. Cutler
July 18
"Farm Prices And Consumer Food Prices"
R. G. Hoover
July 25
"The Steel Barometer"
F. O. Kiel
Aug. 1
"Wheat Marketing Quotas"
C. I. Hummel
Aug. 8
"Spotting A Turn In Business"
A. T. Cutler
Aug. 15
"Greenback Clover"
L. M. Hostetler
Aug. 22
"Inventories Still Rise"
F. O . Kiel
Aug. 29
"Recent Employment Trends"
T. E. Ormiston, Jr
Sept. 5
"Shorter Days Of Labor"
J. L. Enos
Sept. 12
"Soft Goods Outscore Hard Goods"
A. T. Cutler
Sept. 19
"Beef and Pork Cycles"
R. G. Hoover
Sept. 26
"Construction Activity"
F. o . Kiel
Oct. 4
"Net Worth Of Consumers, Early 1953"
T. E. Ormiston, Jr
Oct. 11
"Eleven More Depressions"
L. M . Hostetler
Oct. 18
"The Business Weather: A Few Drops of Rain"
A. T. Cutler
Oct. 25
"Farm Output Stems Rise In Food Prices"
C. I. Hummel
B U S IN E S S
TREN D S
BRO AD CASTS
1953
Date
Subject
Speaker
Nov. 1
"What's Happening To Prices?"
F. O. Kiel
Nov. 8
"Retail Sales Are Down A Notch"
E. R. Chambers
Nov. 15
"The Dip In Consumer Durables Output"
T. E. Ormiston,
Nov. 2 2
"An Autumn Drought"
C. I. Hummel
Nov. 29
"Some Horoscopes For 1953"
L. M. Hostetler
Dec. 6
"Looking Ahead At Construction"
F. O. Kiel
Dec. 13
"Bank Borrowing In The Fourth District"
C. T. Brehm, Jr
Dec. 2 0
"Christmas Buying As A Business Tonic"
A. T. Cutler
Dec. 27
"The Referee's Whistle"
L. M. Hostetler
F O R P R E S S R E L E A S E A F T E R 6 :0 0 P. M.
SU N D A Y , N O VEM BER 2 9 , 1953
"'Tj:
A-
P r e p a r e d b y t he R e s e a r c h D e p a r t m e n t o f t he
FEDERAL RESERVE RANK OF CLEVELAND
S e r v i n g the F o u r t h F e d e r a l Reser ve Di s t r i ct
SO M E H O R O S C O P ES FO R 1953
At first sight it seems quite preposterous to
suggest, as does the caption above, that at this
late hour 1953 remains almost as much of an
enigma as itwas a year ago, and that therefore it
isstillan appropriate subject for prognostication.
Admittedly, at this season there usually pre
vails both an attitude of some impatience with
the old year as it creaks its way out, and an at
mosphere of increasing suspense and expectancy
for the advent of new. Accordingly, during the
next four weeks or so, the age-old art of crystal
gazing presumably will reach its surging climax.
We have long been accustomed to expect, in
every succeeding December, a veritable “Nile”
of predictions and forecasts, which inundates the
receptive business community and then recedes
into its routine channel, leaving a silt of impres
sions as to the shape of things to come. Implicit
in this recurring ritual is the assumption that
the dying year’s constellations have lost their
spell, and that a new zodiac isabout to take over.
It is true that in ancient Egypt there was
scarcely any overlapping of influence by one year
over the next. Each was separated from its pre
decessor by a clean break which, incidentally, is
no longer ascribed to supernatural causes. The
behavior of the great river, within a brief but
vital interval, established the kingdom’s standard
of living for the ensuing twelve months. What
had happened the preceding season was indeed
water over the dam, literally as well as figura
tively. The only exception on record is the carry
over prompted by the Pharaoh’s dream about the
seven fat and the seven lean kine.
In a modern highly-developed and closely-inte
grated economy, however, the past is inseparably
linked with the future, in countless ways and
places. While King Tut’s subjects were almost
unavoidably committed for a single— and only a
single— year at a time, the sharp distinction be
tween yesterday and tomorrow was gradually
obliterated by the effects of the Industrial Revo
lution. The past now continues to exert an influ
ence long after it has disappeared below the
horizon.
Chronologically, the present year soon will have
run its course. It has been under unrestricted
observation by millions of eyes, at close range,
for more than 330 days. Yet itsomens are subject
to exceedingly diverse interpretations. Indeed itis
quite disconcerting, if not actually inauspicious,
that the seers seem to be in somewhat closer
accord with respect to the year ahead, which is
totally unknown, than intheir perceptions of stillcontemporary 1953.
The current year isespecially enigmatic in the
realm of foreign affairs. Only a few outstanding
features, such as the passing of Stalin, the Cor
onation, and the Korean Truce produced a visible
impact. But that is not peculiar. For many of us,
the world beyond our borders has always been
contemplated with an air of unreality. Only the
Broadcast by Merle Hostetler, Director of Research, Federal Reserve Bank of Cleveland, over WGAR,
Cleveland, with Jim Martin, Morning News Editor, WGAR, Sunday, November 29, at 5:45 p.m.
most spectacular events penetrate our conscious
ness and on such occasions we react by instinct,
like the ancients at the unheralded appearance
of a new celestial body.
It isin the region of domestic economic affairs,
however, that the diversity of interpretation is
most striking and attests to the hazards of the
profession. For example, to some the crystal ball
describes 1953 as a kind of economic extrava
ganza, a year with an exceptional volume of em
ployment, with unprecedented incomes, and an
extraordinarily large output of goods for human
consumption. This combination is construed to
be the result of an unusual conjuncture of several
favorable terrestrial influences which can not be
expected to recur for a long time. The joint cul
mination of the defense spending boom, the hous
ing, appliance, and automobile booms is regarded
to be as foreboding as an ancient eclipse, and as
short-lived.
Others gazing into the same crystal ball see
nothing unusual or ominous about the sequence
of events in 1953. They visualize the year as
following the natural order of things— as a step
ping stone toward a still greater prosperity. This
further advance may be nurtured in part by con
tinuously heavy defense expenditures, but is be
lieved to be deriving its momentum largely from
the widespread diffusion of purchasing power,
the constant pull of a rising standard of living,
and the needs of a growing population.
With reference to the last named— population
growth— some further conflictingconclusions may
be observed. Some perceive an inauspicious de
clinein the rate of family or household formation
which they believe augurs illfor merchants, land
lords,and allmanner of craftsmen whose fortunes
are under the sway of demographic trends. On
the other hand, some stargazers see in 1953 what
they construe to be only the early ripples of a
tidal wave of young Americans, which will sweep
aside all former notions of economic demand as
it carries forward through the teens and into
maturity.
The year 1953 also remains shrouded in mys
tery, and subject to conflicting prognoses, in an
other aspect. Some believe they can penetrate the
maze sufficiently to perceive 1953 as the pinnacle
of postwar industrial expansion— the year in
which plant and equipment, as well as physical
properties of every sort, are more than adequate
to cope with any conceivable market. They see
the curse of excessive capacity threatening from
every side. Others, peering into the same recesses,
are inspired by the firstfruitsofpostwar scientific
research, destined to bring an infinite variety of
new and improved products to embellish the art
of living.The vista isobscured only by a melange
of wornout, obsolete, and inefficient equipment
and facilities. They interpret the heavens in
terms of the “Six New Ohios”* which this gen
eration must create from scratch if the growing
population is to continue to enjoy the favor of
the Muses.
That 1953 continues susceptible to occultation
is demonstrated by the conflict of interpretations
of the financial galaxy. Some oracles are agitated
by the sight of a high level of personal indebted
ness, for home, auto, and appliance purchases.
Yet others acclaim the widespread use of instal
ment credit as the harbinger of a new Golden
Age of Distribution. Some are appalled at the
signs of chronic imbalance between the Federal
Government’s income and expenses, and describe
it as deterioration of the nation’s credit, while
others see in 1953 a vindication of their philos
ophy— that a slow but steady inflation has fore
ordained a long period of prosperity.
Neither does the voice of the oracle add to its
reputation for infallibility when it attempts to
divine the formulation of monetary and credit
policy. In one section of the heavens is a con
stellation which depicts the nation getting a taste
of higher interest rates and finding the medicine
too unpleasant to swallow. Those scanning some
other segment of the financial firmament see no
deviation from the avowed objective of preserv
ing the value of the dollar and of promoting
stability of the price level.
Other examples might be cited of the oracles
at odds over a year which has come and gone.
But enough have been related to suggest that
1953 isstillsensitive to clairvoyant exercises and
that in this day and age, the past reveals its
mysteries slowly and reluctantly.
*See Business Trends March 22, 1952.
Listen to "Business Trends>' over WGAR nexf Sunday, December 6, 1953, at 5:45 p.m.
w
X
X
5
H
t*l
TH E
A M E R IC A N
BANKER
March 5, 1955
A m e rica n B a n k e r
The Only Daily Banking Newspaper
TH E
A M E R IC A N
BANKER
December 25, 1955
TH E A M E R IC A N
BANKER
December 29, 1955
TH E
A M ER IC A N
BAN KER
November 19» 1955
O n Cleveland F R Board
TH E
P L A IN
D EA LER
November 15, 1955
W. D. Fulton Talks
to School Heads
BRENNER ROOT
Thompson T o Conduct Lectures,
Seminars In Mexico City
CLEVELAND, O.—Donald S. Thomp
son, vice-president andgeneral economist
of the Federal Reserve Bank of Cleve
land, has accepted an invitation to lec
tureandconduct seminarsontheFederal
Reserve System, August 17-21, at the
Center for Latin American Monetary
Studies in Mexico City.
Ray M. Gidney, president of the bank,
in making this announcement, said Mi.
Thompson would lectureandconduct the
seminars in theSpanish languageat the
invitation of Javier Marquez, director of
the Center.
Mr. Thompson said heexpects to out
linethegeneral history andevolution of
theFederal ReserveSystemandtheFed
eral Reserve Banks, and todiscuss poli
cies of the System, including those re
lating tocredit control and investments.
TH E
AMERI CAN BANKER
December 25, 1955
JOHN C. V1RDEN
Virden Again Chmn., Rummell
D. Chmn. Cleveland F R Bank
CLEVELAND. O.—The Boardof Gov
ernors of the Federal Reserve System
has reappointed John C. Virden to the
board of directors of the Federal Re
serve Bank of Cleveland for a threeyear term ending Dec. 31. 1956. it is
announced by Wilbur D. Fulton, presi
dent of the bank.
Mr. Virden was redesignatedaschair
man of the board and Federal Reserve
agent for the Fourth Federal Reserve
District for 1954. Chairmanof theboaid
of theJohn C. Virden Co. of Cleveland,
he has been a member of the bank’s
hoard since Jan. 1, 1951, and chairman
wince Jan. 1, 195.1.
Leo L. Rummell, dean of the College
of Agriculture of Ohio State University,
and a director of the bank since Jan.
1, 1949, was redesignated as deputy
chairman for 1954.
FRB REAPPOINTS GUND
CLEVELAND. O. — George Gund,
president of the Cleveland Trust Co..
has been reappointed a member of the
Federal Advisory Council from the
Fourth Federal Reserve District for the
year 1954, it was announced by John C.
Virden, chairman of the board of di
lectors of the Federal Reserve Bank of
Cleveland.
Mr. Gund is an officer, trustee or di
rector of 14 civic, philanthropic and
educational organizations, such as the
Cleveland Museumof Art, theCleveland
Council on World Affairs and the Har
vard College Board Committee on Ad
ministrationandAccounts.
He is serving actively as a director
of 25businesscorporations rangingfrom
coal and iron mining to fireand life in
surance, and has had wide experience in
manufacturing, merchandising, real es
tateand banking.
Recently he wasappointedto the Ad
visory Committee of the important Sen
ateCommitteeworkingwith the ExportImport Bank andtheInternational Bank
for Reconstruction and Development to
improve foreign business. He also is a
recently-named trustee of the Ohio
Foundation for Independent Colleges.
W. D. FULTON
Wilbur D. Fulton, president,
the Federal Reserve Bank, last
night addressed more than IOC
public and parochial school su
perintendents. principals andvo
cational guidance counselors
who were guests of the public
relations committee of Cleve
land Chapter. American Insti
tute of Banking, at a dinn—
meeting in Hotel Cleveland. Ills
subject was "The Money Market
and You."
Other speakers includedFred
erick W. Kimball of Society for
Savings. A. I. B. chapter presi
dent; Robert C. .Wilcox, Society,
chapter educational director,
and Laird Landis. Federal Re
serveBank, committeechairman
who presided.
TH E C LE V E LA N D
TH E
A M E R IC A N
July 10,
BAN KER
1955
NEWS
J anuary 2, 1955
BUSINESS TO STAY VP
U. S. Reserve Aide
Calls 1952 Best
DR. JOHN' C. BAKER
BY RAY M.GIDNEY
inesseshsve larger debtsandowe
President, Federal ReserveBank morethsnst anytimeinthepast
Dr. Baker Named Chairman
of Cleveland
thegrowthincredithasfinanced
Cincinnati FR Branch;
The year Just closed hsi been the accumulation of inventories,
Other Board Designations
oneof themost prosperousinour|record-breaking investteent in
history. Measured in dollsrs, the businessplant andequipment, recCLEVELAND. O- — J hn C. Virden.
chairman of the board of directors of
national incomehasbeenthehigh- ord-bresking consumer purchases
the Federal Reserve Bank of Cleveland,
est on record. In terms of real snd thegreatest real estateboon*
announced the reappointment of Clifford
purchasingpower andstandardsofI**» our history,
K. Hood, president of the United State*
livingour peoplehave beenaboutj FinancingDemandtoCentime
Steel Corp., Pittsburgh, a> chairman of
the board of the bank's Pittsburgh
as well off materially as at any) Theyear 1953will probablysee
branch.
time, notwithstandingthedrainon continued demand ior financing,
appointment ofDr"jShncltator, prwiDirectorsof the Federal Reserve Bank of Cleveland, guest*and staff mem- our resourcesimposedby the Ko-,Capital investment in business is
dent of Ohio University. Athens, O., as hers of the Ohio Agricultural Experiment Station sho»n while making a lour resn war and our international expected to be about as large a*
chairmanof thebank'sCincinnati branch of theStation.
«______________________
hoard to >miced Granville R. Lohnes,
Except for interruptions dueto
treasurer of the National Ca*h Regirtei Cleveland rK lours AgrtC.
director. Station; H. A. Hesson. busi- strikes, business generally has
Co., Dayton, whose term has cxpi.cl SUtion at June Meeting
nessm
anager.Station; DeanKummell; beigehnlerevem
arkably stable at very
Bothappointmentsarefor theyear 1.' 4
*
G \. Hummon. assistant tothedirec- h
lsover thepasttwoyears.
Looking into 1953, most of the
» ‘unced’*""’
WOOSTER. O.-The boardofdirectors
charge public
experts predict continued high
Thereappointment of Henry A. Room-of the Federal Reserve Bank of Cleve- ^".lor of“ew“?e»iarch, Station.'
er, .Jr.. president of the Sharon Steelland held a meeting on June 11, at the *^Joh „ Bainer. director. Federal Re- levelsof employment, incomesand
C r,... Sharon, Pa., as director of PitU-Ohio Agricultural Experiment Station,
-h,ndpr„w,ntMerchants businessbutwithgreatlyincreased
burgh branch.
here. Following the meeting the direc- Nlltiona|Bank &Trllst Co.. Meadville, competitive pressures which
The appointment of A. L. Rasmussen,tors madeatour of theExperiment Sta- p>. Walter j Springer, president, sffectadverselysomebusinessesin
president of the Warren National Banr.tton, and viewed the various phases of w"
Warren, Pa., as director of Pittsburghthe agricultural research being carried
AKRON B E AC O N -J O U R N A L
branch tosucceed'Hugo E. Laupp. pres-on by theStation staff.
ident of the Wheeling Dollar Savings * Leo L. Rummell, dean of the College
December 15# 1955
Trust Co., Wheeling, W. Va., whoseternicf Agriculture of the Ohio State Uni-i
last year. Construction is also
has expired.
versity, andadirector of theOhio Agri- j t|„
xpectedtocontinueathighlevels.
men. economists, and govern « e
1 /%•ru n aair\ ir isic . “-cultural Experiment Station, also is
ment reports. These forecasts«*•Andmanufacturersof automobiler
*Cai CLEVELA NU
WO ^a:deputy chairman of the board of direc*
make very .ple
a
s
a
n
t
re
a
d
ln
j.
*
e
«d
oth
erm
consf
u
ern
dura
b
le
o»
oi
ds
tie
r
C
raBinsv
R
1
Q
*SVr
oIto
rs
o
f
th
e
F
e
d
e
ra
l
R
e
s
e
rv
e
B
a
n
k
o
f
_a
.n*s
Un
nm
r
iv
#gV
rin EBRUAFT 7 , 1777 Cleveland.
and sll predict. a gentle d
rift
ui
t**r* n
pls
nn
nino
g fo
ra
an A
aT
cf
tiv
e
ye
ar
r.
j_wn■■
je Realization of these expectations
•••
si-iwill csll for morecredit.
KIEL said 195.1will godown
In the history books as the
most prosperous year, with
good Industrial production and
retail sales and a new low in
By OSCAR SMITH
unemployment.
j p? Fred O. Kiel. Cleveland econ Me declared this prosperity
! Vi omist, is not very optimistic was foundedon defense spend
Left to right are:
fti about business in the near fu- ing now up to 52 billion dol
J. D. Bragg, administrative aecre- | R* ture. but he thinks something lars a year; more than 28 bil
tary. Station; Roger R. Clou-e. vieeis going tobedone about It. lion for plant equipment, and
HOY
BLAKE
xceedingly high volume of
prestfeat and aeeretary. Federal ReAddressing the Akron Real anee
WTV« Bank; W. E. Kraasa. associate
ndingat retail stores.
HONORED—Twoemployesof
Estate Board Monday noon In •pH
said even a small reduc
Federal Reserve Bank of
the Mayflower Hotel Ballroom, tionein
defense spending will
Cleveland. Howard Blake and
the senior economist of the mean les
demand for mate
John J. Hoy. have had their
Federal ReserveBank inCleve rials ands
labor; aslackeningIn
theses acccpted ior the li
land. said “we have already automobile
and tire production
brariesof theAmericanBank
passed the top of the postKo would mean
wer jobs, and
ers Association and theGrad
reaboomandwe'reontheway that even cutsfein
taxes won’t
uate School of Business at
help unless the mopey is put
RutgersUniversity. Thetheses
Into business
werewrittenaspart of there
“But the outlook isn't all
quirements for -radualion
essimistic," Kiel said. “From
from the school last June.
liava staggered a little and p
They aretheonly Ohioans to
plant equipment expenditures the psychological point of view
receivethehonor thisyear.
ALEXANDER WALKER
C LEV ELA N D FR B ELEC TS
R O O T, W A LKER T O BOARD
CLEVELAND, O. — John C. Virden,
chairmanof theboardof directorsof the
Federal Reserve Bank of Cleveland, an
nouncedtheelectionof J. Brenner Root,
president of the Harter Bank &Trust
Co. of Canton, andAlexander E. Walker,
chairman and president of the National
Supply Co. of Pittsburgh, asdirectorsof
the Cleveland Federal Reserve.
The new directors were elected for
three-year terms commencing Jan. 1,
1954.
Mr. Root, a class A director, will
succeed I-awrenee N. Murray, president
of the Mellon National Bank &Trust
Co., Pittsburgh. Mr. Walker, aclass B
director representing comtierce and in
dustry in the Fourth Disvridt, will suc
ceedCharles J. Stilwcll, president of the
Warner A Swasey Co.. Cleveland.
Both Mr. Murray and Hr. Stilwell
have been members of the biard of di
rectors of thebfti»ksinceJan. > 1051.
Mr. Root is a member of th V-ards
of liirectors of:-the Harter BanV Diebol<. Inc.; the Moock Electric .'-il>ply
Co.: Oyler Bros., Inc., and Hi-Way »tor
F oljjbt, Inc., all >.f Canton.
Mr. Wall -*,- isamember of thehoards
of dilCi-tor of: American '.Yelding &
Manufactur.ng Co., Warren,
Fretz
Moon Tube Co., Ir.i., Butler, Pa.: FirtKi
Sterling. Inc, Pittsburgh; Oil Wed
Engineering Co., Ltd., Stockport, En*bind, and American Iron &Steel Insti
tute. NewYork City.
LAKEWOOD P O S T
February
6 . 1955
UmeCh“1,man' '"kn
Sees Move
1Tb To Offset
s Recession
He'll Head Vital
'53 Chest Division
LAKEWOODITE MARTIN
Morrison iabove>, will head
the vital Commerce and In
dustry division of the 1953
Greater Cleveland Community
Chest campaign, it was an
nounced by Campaign Chair
man Harry F. Burmester. The
Federal Reserve Bank of
Cleveland vice-president lives
with his wife at 1196French.
Mr. Morrison, aveteranof al’
but twoof the 35 local Com
munity Chest campaigns, sueceds Fred M. Asbeck. partner
in Um Investment firm of
Okterman, Asbeck andCo., In
his newpost.
THE CLEVELAND PLAIN DEALER •
THE AMERICAN BANKER
J uly 1?, 1955
Ap r i l 28, 1 W
TWO BANK GIRLS
JOINGALLONCLUB
H
J
Win taemoersmps together
for Blood Donations
THE AMERICAN BANKER
J uly 20, 1955
In New Posts at Cincinnati
Cleveland F R Bank Branch
THE AM
ERICAN BANKER
March 2Jj., 1955
4th FR D. strict Ban'is
Show Gain In Earnings
CLEVELAND, O. - - During 1152 t .<
total earning* of Federal Rest, ve mem
ber banksintheFourthDistrict . creased
from$295 million to §Ji9 milm, while
total essets at tin endof the.'tar were
$1.'077million ascomparedw't'i 112,592
millionasof thepreviousyear.
These increases were noted |.y Presi
dent Kay M. Gidney, of the Fcceral Re
serveRank. ' Cleve'ard, in leht ..ngtie
bank's annul1 str..» otr.t ot ' .•elating
istios of memi,-r y.nkafe; 195- •
Intc; loans alone
.showill an incres»<»
year: profits bet - ir.?o,iw-r - * j.icreaseil from!?1«4i.
ii It*".‘ i.- $115
millionin 1952; t*x« . i ret ir -n .•.ver;
$45million ascrmpsi <,i wii.i ••4' i. il'ii.n
in theyear previous; net piviits (h.lore
dividends* were $70 nrllion ii l&'-J and
$63 million in 1951, v»bile dividends to
taling $28 million were $2 million more
than in the previous year.
The earning recoi.l of the member
banks was above tha‘ of a year ago,
whether relatedtotn»al assetsor tocr.pital accounts. T*iey.v-.-rage ratio of total
earnir.us to total xssets was 2.865 in
1952ascompaiei! with2.1:'' aytar ago.
Net current earnings tK-fore income
taxes) averaged 1.06%ef total as-t'.s as
comrared with 1.02? the year previous
Total loans of the inem'ier banks at
the ytar-»nd were $399 million, highcr
than a year ago, and the hold.UKs of
Government securities were $123 million
morethanlast year'sfigure. Theaverage
distribution of the assets, however re
mained relatively u>i-hanged.
All types of loam increased over a
year ago, commercial andindustrial loans
increasing $138million, real estate loans
increasing $112 million and consumer
loans increasing $116million.
Total deposits increased $418 million,
from $11,600 million to $12,018 million,
and total assets weie up $485 million
over a year ago. Capital accounts re
corded a proportionate increase, with
the result that both theratio of capital
accounts to total deposits and the ratio
of capital accounts to total assets re
mained unchanged. The ratio of capital
accounts to assets other than cash and
Government obligations evidenced a
slight dqpline.
F e d e r a l R e s e r v e E le c ts
W . D . F u lton P r e s id e n t
<
JoanAndrewsandAmandaKin
sey have done things together"
since they were first-graders. Sc
it is a pleasure for the Plain
Dealer toenroll themin theRed
Cross Gallon Club and cite them
as star blood donors—together.
Joan and Amanda were gradu
atedtogether in1950by llrsuline
Academy of the Sacred Heart.
14016Euclid Avenue, East Cleveland. Together they took jobs in
ihe Federal ReserveBank, where ____________
Joan isaregisteredmail clerkin VOI NGKST MKMBKRS of theGallonClubtohecitedbvtheHaln
henoncashcollectiondepartment (Vl|,rr an(|thr clty for Wooddo„Bt|on» areAmanda Kinsrv (left)
Amanda works in tne tiscai aB(|j0.BAndr,„,. Rolharetl. Joanchalksupthetotal number
LE
Bv.eM
decp
t,ftbsocw
alrethti.
y, have given. IS by Amanda and 1J bv herself.
r.sin
eartm
thee
ynle
hoo
ey „(
the Red Cross center *
blood.
-We've oeengoing about every
nineweeks." saidJoan.
That isabout par forthecourse.
The RedCross limitsdonors toa
frequencyof everytwomonths.
Burke toHonor Pair
Amanda hasgiven13pintsand
Joan 12. Each nave her eighth
pint in the Korean program to
qualify for theGallonClubanda
citation by the Plain Dealer and
thecityofCleveland. Bothwill be
honored by Mayor Thomas A.
BurkeandtheCity Council, with
other newGallon Club members,
at aCouncil meetinginCity Hal'
next month.
Oneof theincentivesthat keep
the girls giving faithfully is
Amanda's brother Bill, 26. whois
a quartermaster first class serv
ingonthedestroyer GurkeinKo
reanwaters.
Two of Amanda's sisters also
have been Gallon Clubbers. Pat
riciahasarecordof 37pints, in
cludingsixintheKoreanprogram.
Another sister, Mrs. Catherine
Crawford, was a 38-time giver
in previous Red Cross programs.
Amanda lives at 1942 E. 69th
Street, Joanat1726E. 84thStreet
PC
THE CLEVELAND PLAIN DEALER
May 15, 1955
P
lilt HAKII
JOHNSON
ohnson
is HeadSucceed*
CincinnatiBlair
FR
CLEVELAND. O. — John C. Virden,
harman of the board of the Federal
IJcj-erve Bank of Cleveland, announced
•heappointment of Richard G. Johnson,
vice-president, as headof theCincinnati
'ranch.
Mr. Johnson succeedsWilbur T. Blaii,
who has resigned to become vice-pr«»idont and treasurer of the Sharon, Pa.,
steTh
el.-Cb
oo
rp
a.rd of directors also appointed
1’hil J. Geers as cashier, andJohn B:u'•iani . Jr., asAssistant cashier at Cincin
nati i anch.
Mr Johnsonjoinedthe branch y 2,
1918 .ess than four months afteV its
doors ♦ere opened for business. He at
tendedtheSchool of Commerce, Accounts
and Finance of New York University.
More ecently heattended theGraduate
School of Banking at Rutgers Univeriir. Johnson joined Cincinnati branch
asaclerk inthecheckcollectiondepart
ment. He progressed to supervisor, fis
cal agency department; manager, dis
count and securities department; assist
ant auditor, assistant cashier, and, cn
Sept. 1, 1952, tocashier.
His service with the bank was intetruptedduring WorldWar I whenhewas
intheU. S. Army fromAug. 12, 1918to
Oct. 6, 1919.
Mr. Geers joined the branch in 1913
as aclerk inthecheckcollectiondepart
ment. He later was aclerk in thefiscal
agency department; assistant managir,
check collection; field representative,
bank ar.d public relations department,
and on Jan. 8, 1937, was promoted to
assistant cashier.
He took courses sponsored by the
American Institute of Banking and an
accounting course through the La Salle
Extension University, Chicago.
Mr. Biermann joined the launch in
1918 as a clerk in the check collection
department, of which he became assist
ant head in 1937. He became assistant
manager of thefiscal agency department
in 1942 and manager two years latei.
For the last fiveyears healso has been
fieldrepiesentativeinthebankand pub
lic relations department.
Mr. Biermann attendedtheUniversity
of Cincinnati and studied accounting
through the !.a Salle Extension Univeisitv.
lie will r*adi>ate next
<
J
Ph
p
Z
«!
hJ
First Vice-President
ismergedwiththeLakeShore
Banking Co. into the Cleveland
Trust Co
BV GUV T. ROCKWELL
He was bom in Cleveland.
Financial Kdltor
April 1, 1898. but was educated
WilburD. Fulton, nativeCleve-1inschoolsinNewYorkandVinelandcr, vvas elected orcsident of ,and- N J Returning to Cleve..fIland, h
ded^ Weth
ste
e-.
the Federal| Rescue Bank o
Ue
niva#tte
rBn
jty
ern
craR
du
Cleveland yesterday. Donald b.|atr schoo, of b,nklnE conducted
Thompson wa, elevated to first by the Amer,can Bankers Assovice-president. The promotions|cu,„on„ RutKent University,
were announcedby John C. Vir-i
den, chairman, aitcr a meetingI
Served In Engineers
of thedirectors.
| InWorldWar I heservedwith
Bothappointments werepopu-1thearmyengineersasafirstsen*
iarly received not only in theigeant He was commissioned a
bank but by bankers generally.Isecond lieutenant in the reserve
The men »»reelected tofill the corps when the war ended. He
unexpired five-year terms of;spent several yearsinmanageritheir predecessors, both endingIal andaccountingworkwithsavFeb‘ 29,' 1956. The promotions,ingsandloansandthenwasapwerc approved bv the Federal |pointedagency examiner tor the
Reserve governors in Washing-jReconstruction FinanceCorp.
*r,n.
I Fulton joinedtheFederal ReBegan in Cleveland
serve Bank on May 1. 1933. ir
Fultonistechnicallythefourth the examiners' department and
man to hold the officc of pres- was made chief examiner on
i<Vnt The first was the late E. Sept. 1. 1941. His next stepwas
I. Fanclier. whosetitlewasgov-[assistant vice-president andchief
- inor. Mat'new- 1 Fleming, now(examiner in 1943. He was made
t--iired in Floridi. was the first!vie.-pier,ident onJan. 10. 1946.
/how thetitleot president. Hei He lectured on banking sub*assucce~*r I r.a.vM.Gidney. jeets in a course conducted by
nowcomptroller of thecurrency, jthe Kentucky Bankers AssociaFulton. ,'j began his banking|tion at the University of Ken
career inCleveland37yearsago.Itucky.
He has been the first vice-pres-j Fulton is a member of the
ident since last January, whichIPhilosophical and Historical Aslollowedfour years asvice-pres-!(Conunu-d onP»»e 19 ColumnT)
ident in chargc ot the bank.- (Continned FromFirst Page)
bra
n
inCn
in,cin
no
ati.
-odatioAnof__Cinc.in
meric
an
_.
hc
oh
m
h
.nga.ti,OhA
baTi.k
aspsvoic
e-pw
re
sidjoined
ent and gth
enr- .r.stitute
of Bankin
io_Fore
st
•ial economist tn August. 1946, VssodaMon, American Forestry
h- gan his banking career 30 vssocV.tionandClevelandCham•ars ago with the Federal Re- *,r 0>Commerce. He is an ar
serveBankol San Francisco.
........... .
THE CLEVELAN) PLAIN DEALER
J uly 5, 1955
handle on occasion messages of
Y oungstown V indicator
November 16, 1955
ValleyBuilders Association
ToHearClevelandEconomist
Robert G. Hoover, junior econo- ofthecommitteeonarrangements,
mist of theFederalI Reserve Bank aasuted by B. J. Bucheit and
* tht George Shutrump.
Holds OSU Degrees
eonof theBuildHoover has hia bachelor of
era Association
scienceandmaster of sciencede
of Mahoning
greesfromOhioStateUniversity.
Valley at the
,!BeforejoiningtheFederal Reserve
Shenango I nn,
Bank. Hoover wasassociatedwith
Wednesday, Nov
the Department of Agricultural
18.
Economicsat OhioStateandpar
The eighth an
ticipated extensively in the dianual meeting o(l
1semination of econom
ic informa
the Builders As-1
tion to groups throughout Ohio.
sociation
Hoover isamemberof theBusi
open at
ness Statistics Section of the
».m. andcontii
Clevelandchapterof theAmerican
throughout t
Statistical Association and the
day.
Gamma Sigma Delta, national
At the
honor aoclety of agriculture. He
in the evening. R. G. Hoover isaveteranof World War n.
themembers will hear a Ulk by The Builders Association ia S
John T. Dunlop, chairman of the coordinating body for construc
federal joint boardfor settlement tion firms in thedistrict It pro
of jurisdictional disputes, building vides Its members assistance ir.
andconstructionindustry. Dunlop labor disputes through a laborwill come here fromWashington. mmagement council, assistanceir
WilliamK. Hunter lachairman apprenticeship programs througt
anapprenticecoordinator, cornerThe promotion!*of Mr. Geer* and Mr.
Biermann were reported in our col
umn- last week, alonewiththenaming
of Richard G. Johnson, to b« virencharge<ff the branch.
JohnE. Morleyiaexecutivevie*
president of theassociation.
nFinanceCorp.
FAST WIRE OSLO athnedRtheecoCnosmtrumcotio
dityCredit Corp.
Speedingup the wire transfer
of funds for commercial banks,
n which the Federal
BYFEDERALBANK aRnesoeprveeratio
Systemhandles to the
Cleveland Federal Installs the Federal Reserve banks ad
NewService Monday juthest thIneirtear-Dccoisutric
ntsdaily throagh
t Settlement
----------
tune of hundreds of billions of
mST.. HM
aAlraar.
Author of Articles
ThompsonIstheauthor or co
author of many articles on sta
tistics, economics and finance.
He is a f,'lovv and former vicepresident'Of the American Sta
tistics! Asj.onation, beingoneof
two Clevelanders to be fellows.
Howard Whipple Green wa* ao
honoredashort time ago.
Thompsonwas bomin Kansas
City onMarch 27. 1899, andma
jored in business administration
andforeign tradeat theUniver
sity ot California. Hewasdirec
tor oc the i.' oan reai estate fi
nance project of the National
Bureau of Economic F.eaearch,
New York, froo. 1344 until b«
joined the Cleveland bank in
August, 1946.
Thompson >s a veteran of
WorldWar L Hishobbyisfenc
ing. and he was amember of a
four-man epeeteamtromnorth
ern Ohio that won the national
epee (dueling sword) enampionshipin1952. Heisvice-president
of the Amateur Fencers Leagu*
of Americaanti derivesmuchen
joyment fromteachingamateurs
to fence.
The Thompsons have a son.
Donald G„ who teaches at
Wright Junior College in Chi
cago, andadaughter, Gail, astu
dent at Shaker Heights High
School. They '.ve at 3352 Nor
woodRoad, SI aker Heights.
A new automatic teletype- ,rund at Washington. Messages
writer communications system, t-ansferring treasury funds in
through which hundreds of mil- largeamountswill alsomovevia
lions of dollars of bank credit the network
will be transferred about the Total volui of transfers last
country dally, will be put into
through the channels the
stem will replace.
operation by the Federal Re
serve System tomorrow, it was amounted to$725,962,000,000
announced yesterday by Wilbur The newswitchingsystemhat
D. Fulton, president. Federal Re a mechanical "brain" able t<
spot humanerrors. Entirelyauto
serve Bank of Cleveland.
Thenetworkwill linktogethei matic—except forithe typing ol
46stationsin37citiesac.t» the o
,h*erator—it inc«*
•ra
**
o«*
rpo
tes*seve,h
ra*l
country, with aswitchingcenter np
ew techniques in written com
in the Federal Reserve Bank of m
unications to speed messages
Ric
h
m
o
n
d
.
V
a
.
ic
oaiK
ag
inte
stro
lo>sps,ofmtra
ffic
Itnm
w
sidevv■eloped by the Bell„ a
luncdhins
„ure,n
‘ain
ach
ine.
Telephone laboratories and pro- whjch ^ckl miMlirKtFd
eral Reserve System.
videdunder contract by thelong Mges
- i.
.w----lines department of the Ameri- Some 6.000 messages aserag- .
g 25woi-ds are sent each day
of amember bank in the
can iriepnoneat leicgrapnto. in
jve
r
th
e
F
e
d
e
ra
l
R
e
s
e
rv
e
's
c
o
m
to
ur,h
*
FDistrict
The new network, know
-nunications network. The new« nu
55000 to.s«"
theFederal Reserve leasedwire iystem, incorporating e-quipment■cisco
' *na
dl.,aftHutocboam
plew
te
buasink
ouald
sk
system, will span 11.000 miles designedtooperateat lin
espeed n
1ess detra
nsfer the funds. We
as the crow flies, bringing tlie om
l a7x5im
wu
om
rdsusaem
inlin
ute
,tim
will
allow woulddedu
o
f
e
e
.
c
t
tlie
$
5
,0
0
0
fro
m
e
12 Federal Reserve banks and An important function of the IT*\mb,'r ^ nk*•«ount th
A
ReserveBoardof Governors, and speedandaccuracyareessential.
w._u
the
e tre
ury
ry’s
offic
e in
in W
assn
h- »,■ »•» telegraph_
ic_tra
L1te
h* whole b*
nkns,n
th
trea
as
su
*o
tiice
wa
_ nsfer of city °Th
tra
ac^
tion
might take lew than half an
hour"
T H E A M E R IC A N
January
Fulton First V.-P.; Blair,
Clouse Advanced At FR
Bank of Cleveland
CLEVELAND, 0.—Directors of the
Federal Reserve Bank of Cleveland
sleetedWilbur D. Fulton tothe position
of first vice-president. President Hay M.
Gidney announced.
Mr. Fulton has succeeded William H.
Fletcher, who retired on December 31,
after 45years inbanking, thelast 36of
which were with the Federal Reserve
Bank.
Wilbur T. Blair, vice-president, counsel
•*ndsecretary of thebank, was namedto
•ucceed Mr. Fulton as vice-president in
charge of the bank’s Cincinnati branch.
Roger R. Clouse, vice-president, will
l>ecome vice-president and secretary of
the bank. President Gidney announced.
Paul Breidenbarh hasbeenappointedat
torney and will assume the duties now
performedby Mr. Blair ascounsel for the
Mr. Fulton was born in Cleveland 64
years ago, andbegan his banking career
in 1916with the Garfield Savings Bank,
which later merged with the Cleveland
Trust Co. Hebecameassociatedwiththe
ReserveBank in 1933, asanexaminer in
its bank examination department, and
eight years later was promoted tochief
examiner.
Hebecameassistant vice-president and
chief examirer in 1943; vice-president in
1946, and was placed in charge of the
bank’sCincinnati branch in 1949.
Mr. Fletcher was born in Athens, O.,
andwas graduatedfromOhio University
in1907. Hewasanational bankexaminer
from 1910 until he joined the Federal
Reserve Bank on Feb. 18, 1918, as man
ager of its accounting department.
Hebecamechief examiner for thebank
and, uponbis return fromArmy service
m 1919, organized th« bank's examina
tion department. He was assistant and
acting Federal Reserve Agent for the
Fourth Federal Reserve District from
1913until hispromotiontovice-president
in 1936. In 1945, hewas appointed first
vice-president.
Mr. Blair became associated with the
Federal Reserve Bank in 1946, and first
servedinthecapacity of assistant secre
tary. In 1946, he was appointed secre
tary and later counsel of the bank. In
1951, he was appointed vice-president,
counsel andsecretary. Mr. Clousejoined
the bank as its secretary in 1943: In
1945, he was appointed assistant viceprestdent and. in 1949, became vicepresident in charge of bank and public
relations.
BANKER
T H E T IM E S -R E C O R D E R
1 5 , 1955
Za n e s v il l e , Oh io
November 19* 1955
Fulton Succeeds Fltfcher at FR Bank of Cleveland
WILLIAM D. FLETCHER
Retired first vice-president.
BANKERS MEET — Executives of local banks and th* Fadaral Raiarva Bank of Cleveland
who participated at a panel in a six-county conference hare Wednesday ara shown above
at the Country club. Laft to right ara: seated—W. E. Decker, president of The First Trust
& Savings Bank; Milman H. Linn, president of tha First National Bank, who was chairman;
William D. Murphy, president of the Citixens National bank and Paul D. Ewing, president of
the National Bank of Cambridge; standing, Roger R. Clouse, vie* president end secretary
of the Federal Reserve Bank of Cleveland who was moderator; Merle Hostetler, director of
research for the Federal Reserve bank, guest speaker; H. G. Crook, *x*cutiva vice president
of the National Bank of Cambridge and Willard Patton, cashier of thaCentral National Bank
of Cambridge.
Zanesville Area Bankers Hear
Talk On ‘Pyramid Of Credit9
ROGER R. CLOUSE
Vice-president andsecretary.
TH E
O H IO
January,
exist as anarmed camp, there cannpnationcan afford tohave people
are more millions of other
defense than the millions bearivenbyMerleHostetler, director
research of the Federal ReBankof Clevelandbeforeofanddirector*of banks from
Monroe, Morgan. Mu»Noble and Perry counties
theZanesvillecountry clubyes-
BANKER
1955
Numerous Staff
Cleveland Federal
COVFEHENCE had been
by The Fir*t National.
Citizens National. The First
andSavings banksof Zanesand the Federal Reserve
A number of important changeshave been made
sentative in the
inthe“official family” of theFeideral ReserveBank
partment.
inClevelandduring thelast month, it wasreported
GeorgeGund,
by President Ray M. Gidney.
Company, has k
Heading the list was the election of John C.
Federal Advisory
Virden, chairman of the Board of the JoKn C. Rrsene District for
Virden Company, Cleveland, to the position of
qu()<j >n
chairman of the Board of Directors of theFederal
■• l-i .l
Reserve Bank of Cleveland and Agent for the
T Ph,lw,,h'0P'‘
Fourth Federal Reserve District for 1953. He sue
"""
*
ceeds George C. Brainard. chairman of the execu- |orP°ra,"n* ranging
live Committee of the Addressograph-Multigraph
° re*n 1*
Corporation, whoretired December 31.
rnor in manufacture.
Leo L. Rummell, dean of the College of Agriculture, Ohio State University, and a director of ,r*"
R. Lohnes,
the Federal Reserve Bank „f Cleveland since ( ash
Company
January 1, 1949, was elei Tur . , _
chairman of
1953.
^A M E R IC A N BANKFR ,h« Fedefal
Sidney A. Swensrud. SEPTEMBER 1 4 ,
1955 an *•»
S T T tL M Cleveland
FR
Sp^or,
termending December Agricultural Meetings
"**
***
-’ “,,u
and W.
theBoardelectedWilbti * f '"
^**
” ‘ V«.
T“ '
The Fift
of first vice-president, CLEVELAND, 0.—Wilbur D. Fulton, whoseterm
_ __ ,dorf wnl. ‘sm
Stiosxa
h
field, the last h
3*5
titu
n will^
sponsor three agricultural o
un«d theappointment of Dr. John C.
Reserve.
neeting*for-bankersinwesternPcnnsyl- ident of Ohio University, Athens, Ohio,
Wilbur T. Blair, v UU. “ d W“ l V,rfm“' S*ptember 15appointment of Henry C. Besuden, „
secretary of the bank, I Arrangements for the meetings wereP'nc^es*er’ Ky- totheCincinnati Branch
made by John W. Kossin, vice-president
Mr. —
Fulton a*vice-pre*
cinnati branch.
brantV^saistedChbV^laude*LP,Hununelh,kr Wl1*****'*** une*Pir«l ‘«m of two
Roger R. Clouse, agricultural specialist of the bank. Mr!r- Ernest H. Hahne. president of Miami
vice-president andsecret Kossnwill speakateachofthemeetings. Oxford. Ohio, who died November 25.
announced. Paul Bried bar!!"
nkers’, groups of the Pennsylvania►
i>was re,appointed for athree->ear term
attorney and will assi, BankersAssociationareco-sponsorswith anuary I.
________
the bank of the first two meetings, at
performed by Mr. Blairj w
hich Belden Daniels, newly named sec
Promoted to vice-pr retary of thePBA, will beinattendance.
O-sponsors with the bank of the third £. P. Curry, cashierof thePunxsutawney
Smith, who joined the m
eeting will be West Virginia Univer- National Bank.
who has been assistant sity
andGroupOneof theWest Virginia They will visit -the B. E. Anthony *
Sons poultry farm, theC. M. Wingert £
1943. He is in charge Bankers Association.
e first meeting, September 16, will Son dairy farm, and the J. C. Newbold
and investmentsdepartr beTh
g
in
ithaluncheonat theWhiteSwan purebred beef cattle farm. Talks ~i"
Promoted from,assisti Hotel.w
_ r by Mr. Olmstead and by Monroe
Uniontown, Pa. Thechairmanwill A
rmes, farm management department,
be Paul Malone, president of the Second Pe
president were:
nStateCollege, whosesubject will b»
ational Bankof Uniontownandadirec np
Phillip B. Didham, ( N
ortant Management Factors on
tor of Pittsburgh branch. Bankers in “Im
Poultry and Beef Farms.” The evening
attendance will represent Greene, Fay s
Lowe and Joseph M. Me
peaker will be Mr. Armstrong.
tte
a
n
d
S
o
m
e
rs
e
t
c
o
u
n
tie
s
.
Promoted to assistan A tour of thenearbyGans Dairy Farm
Crawford, formerly ma will be followed by talks by James H.
Eakin, agronomy department, PennState
nent. and Elmer F. Fr C
ollege, on “A Low Coat Dairy Feed
a, underthechairmanshipof LouU
Program," and by R. H. Olmstead. dairy W.YV
aeger, vice-president anddirector of
husbwdry department of the college, on J.
WheelingDollar SavingsATrust Co.
“Some Significant Trends in Dairy the
A via
isit to the dairy farm of Arthur
Farming."
Fisher will befollowedby talksby R. H.
“Bank Services to Farmers” will be B
oal, agricultural economist, andG
.Heediscussed following dinner a( the hotel11b
k, extension dairyman, both of West
bf J. S. Armstrong, executive vice-pres-■Vin
inia University. Mr. Boal will speak
icent of the Grove City National Bank•onirg“P
rofitable Farm Management PracGrove City,
P
a
.,
a
n
d
c
h
a
irm
a
n
,
a
g
ric
u
l
-ittee•
•ns.ylvania Bank—
ets,”DeavnedloM
r.en
Hts
eeb
kaw
.ll d
cusin
sg“R
tural com-m
, Pen
ers' tic
,*n
pm
ininD
iry
Fis
arm
.”i»Association.
The main speaker at the evening sesBanker* of Clarion. Indiana and Jef- sion will be Professor G. E. Toben. of
feraon counties. Pa., will meet Septem- Weat Virginia Univeraity, whose subject
he* 1*. at the Country Club, Punxsu- will be “Use of Credit in Part-Ttimo
tawney. Pa., under the chairmannhtn of Farming."
Hostetler's talk, Rogvice president and
of the Federal Reserve
as moderator over
discussion of economin which the particiW. E. Decker, presithe First Trust and SavW. D. Murphy, presiCitizen*National bank;
executive vice presiP. D. Ewing, president
National Bank of
I*
March 26,
E N TE R P R IS E
1955
LOCAL FARMERS
HEAR HUMMELL
Clauda/Homm£l. agricultural spec
ialist with the Pede-'i tteserve Bank
of Cleveland, spoke to 18adult farm
ers Monday evening on “Financing
the Farm Business in 195?”
When asked if farmers should bor
rowmoney tobuy newmachinery 01
farms in 1963, Hummel pointed out
the following facts: (1) Farmprice?
areonthe decrease, andprobably will
decrease further unless an all-out
war should develop; (2) Land prices
may drop over the next period of
years, but “our population increasei*
making the agriculture»outlook much
better1.
He advised that dairy production
lookedbest for *63, followedby sheep,
hogs and poultry, with the beef out
look on the bottomof the list.
Hummeil stated that in 1952 the
U. S. consuming public had a deb.
of 23.7 billion on consumable goods.
The farm people owe $6.7 billion on
farm mortgages, and $8.6 billion on
-production loans. This ik a sharp in
crease over the 1946level.
The meeting was the last in aser
ifs of 16 sponsored by the local vo
cational agriculture department. A
total of 263 attended for an average
of 16per meeting.
T>ie group will have a family eve
ning April 9th, and the program is
being planned to include the whole
family. The arrangements committee
asks that each family bring enough
sandwiches andcookies for their owr
tae. Drinks will be furnished.
tial efforts continuously being
made in the interest of defense.
Hostetler's talk was what h«
termed the answer to most ques
tions faced by bankers e\ery day.
The chart used for the pyramid
illustration showed what portions
(ContinuedfromPage1)
Cambridge, and Willard Patton. °*th* nation*wealth is available
cashier of The Central National and for what purpose*. His combank of Cambridge.
m*nt 0,1 the over-all wealth was
a nnmhap
_ _ .. _that there is more money today
Zanesville Area
Bankers Meet
First National bank was chairman £r
o
fte
threla
co
e.g.Dinner washeH h
.e questioned w
wh
la
stnfe
ere
venncin
he
eth
the
err financial
conditions such as prevailed in
HOSTETLER'S topic was “The 1929 would occur “during our
Pyramid of Bank Credit'’ and as time.”
he discussed the general mone- a similar meeting for directors
Ury mechanism of the Reserve and executive* of banks in Car*y»tem. he answered the many|roa> Cblumbiana and Jeffer»n
questions about national economies
t, tobeheldtoday at the
are
led
mbGyolfthc
. It N
wailltiobnealspaonndhutrated his p°y*rarmd discuH
ss*ions!S
so
elub
Fim
that showedthedivi- theFarmer*National banksof Sasionrtt thenation*wealth.
!emandtheFederal Reserve unit.
The speaker discussed in detail
the fixing of the national debt.
*"*
and the free gold question, and,£ *
Lh
zit zthatzt iszcozndzusivse&to higrhzezm- £•«[*• «•«*»•
.
ployment and thegeneral subility *“ rk KUncetumith. secretary
of ft nation's flruuiciftl structure,
casni«r. Tht Union Banking
plus the rising standard of living. Corfipany of Columbiana, Ohio; C.
Hostetler explained the latest finn
tdin
th
Un
-t henville. S
Stu
tSb^n
^. O
Oh
hio
io; ^C.
em
ille
gnuaangceialof d
aevbe
alo
nkpem
rea
add
ee
dth
at*
nviU
ve
llle
. Poole, presid
nt.. Thheio. Na
the laymen often misunderstood H
tional ExchangeBankATrust Co.,
interpretations regardless of how S
te
u
b
e
n
v
ille
:
G
.
E
.
S
ta
rk
e
y
,
presi
plainly given.
dent, The Potters Bank 4 Tnirt
WITHOIT mentioning Inflation Company. East Liverpool. Ohio,
or deflation, he indicated it was and E. M. Stephenson, president.
his belief the nation’s future was The Fanners National Bank of
jut dimin referring tothe indus-
THE CLEVELAND PRESS
J anuary 7* 1955
% Business & Finance
By Robert Seltzer
TH E A M E R IC A N
June 17,
BANKER
1955
Virden "Back in School" as
Federal Reserve Chairman
Slender, personable John Closey Virden Sr.. 56 next
montl^ newchairman of the board of the Federal Reserve
Bank of Geveland, is “back in school” cramming lor his
many responsibilities.
> Anenergeticexecutivewhois can do It better than he caui.
onthedirectorates andexecutive He is one of the best-informed
committees of numerous large presidents inthesystem. Cleve
corporations and active in civic land is lucky tohave him.**
affairs, Virden is learning the Virden sees a big Job ahead
multifarious duties of his Job r thenation inthemanner in
andtheFedora! ReserveSystem fo
which it handles its monetary
tinder the tutelage of Ray M. p
licies. Hebelievesthiswill be
Cidnev. president of thebank. oo
ne of the major factors in de
Board chairman of the John te
rmining whether we retain
C. Virden Co.. 6103 Longfellow the
e enterprise system. In
Ave., manufacturersofincandes flatiofre
n. hesaid, wouldtakeaway
cent and fluorescent lighting o
r competitive capitalism.
equipment. Johnseekstodevote u"W
e
st.'.’ he said, "cut
part of each working day with wastefulmu
and extravagance so
some department head of the that we ge
t adollar’s worth of
ban*.
aluefor eachdollar wehaveto
That'stheVirdenstory. From v
spend because of the acute In
1l*etime liewas amateur tennis ternational situation.
champion of Cleveland in 1916 "Our newadministration will
andlater headof his own com streamline and make moreeffi
pany. hehassought tolearnail cient thenation’sspendingagen
heran about everything heun cies. Thiswill leadtomoreeffi
dertakes.
cient useof revenue, abalanced
“With men like George M. budget and then reduced taxes
Humphrey as secretary of the If wedon't dosomething to re
Treasury and WilliamM. Mar store incentive in business anr
tin as chairman of the Federal industry, we will kill the g
Reserve Board." said Virden. at laidthei
"
“thefiscal policies of thecoun Virden Isa
try will be in capable hands. I her of theexecutlv^commlltees
of RatonMfg. Co.. theIlluminat
ing Co. and the Interlake Iron
Virden arrives at his desk at Corp.. andadirector of Diamond
theVirdenplant at8:15a. m. He Alkali Co. and Brush Beryllium
spendstwoor threehoursthere. Co.
Operatingexecutiveof thefirm He also Is a member of the
Is his son. John C. Virden Jr., BusinessAdvisoryCouncil, affili
30, president, agraduateofYale atedwith the secretary of com
and adive bomber pilot in the merce. a medium designed to
Marine Air Corps in theSouth foster better understanding be
Pacific in World War n.
tween government andindustry.
If Virden has nomeetings of Anativeof Montgomery, Ala.,
the various boards of directors Virden servedas regional direc
or executive committees of tor of theWar ProductionBoard
which he is a member or the from1942to1945. He was cen
1University Hospitals, of which tral field commissioner for Eu
he is president of the hoard of rope in the Office of Foreign
trustees, hereportsat hissump Liquidation Commissioner in
tuousofficeat thebank.
1945and1946. andservedasdi
‘••Ifeel I havemuch tolearn," rector of theOfficeof Industry
said Virden. who lias heen a Cooperation. DepartmentofCom
boardmember anddeputychair merce. in 1948.
mansinceJan. 1. 1951. “Gidney Virden and his wife live at
has taken me under his wing 19701 North Park Blvd., Shaker
andIsteachingmewhat achair Heights. In addition toJohn C.
manshouldknowabout tlieFed Jr., they have a daughter, Eueral Rgperve System. Nobody phemiaK.
TH E
P L A IN
DEALER
L. MERLE HOSTETLER
The speaker said. "Bankers
must be alert to those events
whichultimately wouldaffect our
national andlocal tempoof busi
ness. Such events are: a coolingoff or changeof paceof thecold
war, the leveling off of defense
spending, and the monetary and
fiscal policies designed to check
inflation or stabilize thevalue of
thedollar.”
Fulton stated that "the period
ahead will give opportunities for
bankers toassist the newadminISt^tion and tostrengthen bank
ing lSt*"the Judicious apportionnent ofcredit, bycounselingwith
be.rowers, andbyreducingborder
line or undesirable loans.”
Fulton also stated that “im
proved earnings will permit the
creationof reservesandadditions
tocapital accounts for protection
■f both depositors and stockhold"Additional efforts must be
made." hesaid, "toimprovebank
operations inorder togivebetter
service. One of tliegreatest chal
lenges during 1953 is that of
adoptingprogramswhichwill pro
vide additional training for per
sonnel inorder that they may be
better abletoassumegreater re
sponsibilities and executive posi
tions in their Institutions,” he
added.
CLEVELAND
P R E SS
J anuary 11;, 1955
Hails Opportunity
for Leadership
in Banking Field
"This year will providenewop
portunities for constructive and
dynamic leadershipinthefieldof
banking," said Wilhur D. Fulton,
first vicc-president of theFederal
Reserve Bank of Cleveland in
speaking at six!
bankers confcr-1
encesinOhiore-|
cently.
Approximately.
600bankersfrom*a t
Hostetler Director Reserach
Cleveland Federal Reserve
CLEVELAND, O.—The promotion of
L. Merle Hostetler to Director of Re
search of the Federal Reserve Bank of
Cleveland, effective immediately, ha*
■been announced by John C. Virden,
chairman of the board of directors of
the bank.
In his new p»-*t, Mr. Hostetler will
beresponsiblefor the researchactivities
of the bank and will serve as economic
adviser to the director* and officers, assumirg the duties and responsibilities
dischargedby Donald S. Thompson prior
to his appointment as first vice-presi
dent <>nM*.y 14.
Widely known as a financial analy.-*
and speaker on economic subjects, Mr.
Hostetler iseditor of thebank's“Month
ly Business Re.-iew,” and he appears
frequently on the “Business Trends
broadcasts sponsored by the hank ovev
station WGAR, Cleveland, each Satur
day morning.
A native Ohioan, Mr. Hostetler ob
tained an A.B. degree at Western Re
serveUniversity. Cleveland, : ■1924, and
later an M.B.A. degree at the same
university.
He was a long-time member of the
faculty of Western R^.erve University.
Department of Banking andFinance. He
is the author of numi i-s articles pub
lished iii financial aiia business maga
zines and is the author of ‘he book.
“75Years of American Finance.’’
Mr. Hostetler isamenjber of :heCom
mitteeonForeign RelationsoftheCleve
landCouncil onWorld Affairs; Cleveland
So;irt> ,.f Security Analysts; American
E<i" i*;«ir Association; American Statis
tics! Association; American Finance As
sociation:' Delta Upsilon fraternity;
Brerksvilie tO.) Planning Commission;
Cuyalmca C«nnty Board of Health, and
is a past pres..lent of the Bvecksville
Board of Educ.iti- '..
TH E
April 19» 1955
Business & Finance
By Robert Seltzer
Four Automatic Coin Counting
Machines Aid Federal Reserve
Automatic coin counting and packaging machines have
simplified the job of James R. Lowe, assistant vice presi
dent of the’Federal Reserve Bank of Cleveland, in charge
of the cash department.
b^totsman
beerocfarto
rolls
sath
reep
d
h
airedScotsman, inhis33d>ear ^num,h
ns. To
ap
nd
ylacae
re
'v'l
wm
ith
h
eah_Jh
rtilyeapproves“heIwSSi
Utor-tav. sealed with a steel tapsehip
ent,a
tag attributes of the lour ma^nomination of thefoUr
chinesbought fromthe,Johnson
chjneJ „ one e,ch lor
Fare Box Co., Chicago, a sub- niekels dimes andquarters and
sidiaryof Bowser Inc.
halves. LowesaidonenewpenThe four eoin<-ouiitiiig ma- ny machirw. and 0ne newnickel
<bines have been in use at the
machine wju ^ installed,
bank here on a trial basis for Formerly, another typeof mathree month*. During this pe- chine counted and loadedwrapriod, moneyincirculationinthe
and gjris crimped the
nation readied an all-time high
wrappers.
of $30,757,000,000.
Lowe said the bank started
Lowesaidtwomoremachines furnishing wrapped coins to
will beinstalled. He then plans member banks in 1948. The
an tssembly line, akin toa fac- banks formerly wrapped their
tory, with a conveyor belt to own coins. Coins are wrapp'd
carry off filled coin cartons. at thebankhereand at itsC.nI saw these coin-counters in cinnatl andPittsburghbranches,
operation. Coins are dumped In the first year. 194*. the
into a hopper near the floor bank paid out $19,000,000 in
level, carriedupaconveyor belt wrapped coin* at the three ofanddumpedIntoacountinghop- flees. I"»>ear thhi had risen
per. withautomaticshutoff. The R> $57,000,000, or 3177 ton*
coins are whirled around and
«>'"*•
deposited into pre-crimped coin
out by thebank here. This
wth
raeprpee
rs
rora
cepspse
, rthis
e More than halfro
f*’
.1
I th
tll-e
o
n.d In
of th
theepw
o
f
a
ll
member banks are using th
is
ccrim
rimp
pe
ed
o.
coin service.” said Lowe. “A
Th
e
n
o
m
in
a
l
c
h
a
rg
e
is
m
a
d
e
to
c
o
v
er
downaslot, thencarriedupan- ^ of materja, andtabor. There
other conveyor. En route they
6?4 member tankg ln the
pass through a printing device KourthFederat ReserveDistrict,
which stampsonthem Federal -The coinsupply wastight in
Reserve Bank of Cleveland. the pre-Christmas period. Now
Next, the filled wrappers are are potting a back-up and
automatically loaded into car- building up stock. This is custons.
tomary after the holidays in
The machines fill carious In bothcurrency andcoin."
units of $'25in pennies. $100in HerearesomeLowestatistics
nickels. $250In dimes and $500 for thedistrict in 1952: Nickels
In quarters and halvvs.
paid out. 218.000.000; pennies,
Cartons areweighed toascer- 213.000,000, and dimes 142,000,tainthat theycontaintheproper 000.
T h e C le v e la n d P r e s s
TH E C L E V E L A N D
PRESS
August 1l|, 1955
TH E
CLEVELAND
PR ESS
J anuary 2, 1955
CLEVELAND PREi-C LtC.20,'53
Hit That Key and M ake It "3"
By MARIE DAERR
Strings on fheir fingers proved the prevail
ing fashion today among the typewrlter-andfile-case set. Bi business girls struggled with
the second-day-of-thenew-year problemof dat
ing their output January, 1953, instead of
January, 1952.
In offices all over town, erasers moved
briskly across stationery, crumpledpaper piled
high In wastebaskets and bosses returned let
ters with thegentleadmonition: “Very neatly
typed. MissSmith, but hadn't youbetterchange
thedate?”
In Federal Reserve Bank's check collection
department, brown-eyed Mis* Loiss Bergenstein, 3442 W. 88th St., removed a red satin
bowfroma pile of faded holiday decorations
andtiedit whereit wouldserveasa memoryfreshener.
Some Dates Io*y to Riimmbtr
“Funny howyou don't haveany trouble re
membering SOME dates,” said Miss Bergenstein, dreamily.
Her remark, sheexplained, might havesome
connection with the fact that on Christmas
Eveshereceivedanengagement ringfromWil
liamBates of 5821Bridge Ave.At work, Jan. 2 brought Miss Bergenstein
opportunity for memory testing in endorsing RIBBON FOR REMINDER is Miss Loiss
checksandcompleting adaily cashletter. At Bergenstein's answer todateproblem. Miss
home. Miss Bergenstein expects to heerasing Bergenstein works at Federal ReserveBank.
the last digit of “1952" often during the next
(Press Photos by George Grunt)
month or so. because she corresponds with a
number of friends.
SIDEWALK HOSINC is done daily by some downtown
buildings. Here is Verne Dickson of the Federal Re
serve Bank maintenance staff making the Superior Ave.
sidewalk a little brighter.
BALLOON TREE was an exciting sight for small try at
Federal Reserve Bank party. And nobody got upset when
they plucked the blossoming balloons.
Cle v
THE
TH E
A M E R IC A N
January
Credit Is Topic
As District
Bankers Meet
T H E W OOSTER R EC ORD
March 27, 1955
AREA BANKERS C O N FER IN W O O STER
NEWS
7,
BANKER
1955
HAROLD E. J. SMITH
ASBANKERS CONVENED HERE. — Speakersand discussion leaders' in the three-county bankers
meeting at SalemGolf Club Thursday evening included (above. 1.tor.i DonaldS. Thompson, Roger
R. ClouseandMerleHostetler of theClevelandFederal Reserve Bank, C. L. Long of Steubenville E
M. Stephensonof Salem. G. E. Starkey of East Liverpool, L. H. ColleyofSalem, Mark Klingensmithof
Columbiana and C. H. Poole of Steubenville.
IfleFederal ReserveBankofCleve-(leaders in the informal discussion
land.
period fallowed Mr. Hostetler’s
included:
Donald S. Thompson, first vice, talkark
Klingensmith, secretarV,
president of the Federal Reserve anM
cashier of the Union Banking
Bank, opened the conference and Cod
Merle Hostetler, director of re . of Columbiana; C. L. Long,
search of the Federal Reserve
Bank of Cleveland, spokeon“The key, president, Patters Bank &
id of Bank Credit.”
Officers and directors of banks.PyL.ram
st Co., East Liverpool. E. M.
. Colley, president of the Tru
inCarroll. Columbiana andJeffer First H
Stephenson, president. Farmers
National Bankof Salem, was N
soncountiestookpart inaBankers chairm
ational Bank of Salem, and C.
an of themeeting!
Conferencelast night at theSalem
H
.
Poole, president, National Ex
Golf Club, sponsoredjointly by the Moderator of thectwferencc- was changeandTru*l Co., Steubenville.
First National Bank and the Far Roger R. Clouse, vicepresident of
mersNational Bankof Salem, and the Ft-.'eral Reserve Bank and
CLEVELAND
J uly 27, 1955
TH E
e w s
S A LE M NEWS
November 20, 1955
A HUNDRED AND five bankers
andthoseassociatedwithfinancial
institutions attended' Thursday
night’sdinner at theCountry club
ts guests of the Federal Reserve
Bank of Cleveland.
The dinner followed an all-day
bankers conference at the club.
Attending were bankers from
Wayne Holme* and Medina coun
ties.
INTHE PICTURE, front rowleft
to right: Galus Beam, cashier,
CitizensNational Bank* R B Car
ey. vice president of the Adam*
Bank of MiOersburg; Roger
Clouse, vice president and secre-.
tary of the Federal Reserve Bank
of Cleveland; Wilbur D Fulton,
first vice president. Federal Re
serve Bank of Cleveland. Secondrow, Charles F McBride. vice
president andcaihier of theFarm
er* Bank of We*t Salem; L.
Merle Hostetler, assistant vice
president, Federal Reserve Bank
of Cleveland; Leroy B Webner,
cashier, Orrville National Bank;
Ellis Camp, cashier?Wayne Coun
ty National Bank.
N
ela n d
Smith Vice-President
F. R. B. ot Cleveland;
Four Named Ass’t V.-P».
CLEVELAND. O.—Ray M. Gidney,
president of the Federal Reserve Bank
of Cleveland, announced here appoint
ment of a vice-president, four assistant
vice-presidents and two assistant cash
iers, effectiveJanuary 1.
Promoted to vice-president is Harold
E. J Smith, whojoinedthebankin191S,
anc who has been assistant vice-presi
den’, since 1943. He is in charge of the
hank's credits, loans and investments
department.
Promoted from assistant cashier to
assistant vice-president were: Phillip B.
Dicnam,GeorgeH. Emdc, James R. Lowe
anc Joseph M. Miller.
Promoted to assistant cashier were
Charles E. Crawford, formerly manager
of the cash depurtment, and Elmer F.
Fricek, formerly field representative in
thebankandpublicrelationsdepartment.
Mr. Smith hasbeenincredit work for
24 of his 34 years in banking. Since
1937hehasIieeninchargeof thebank’s
credits, loans and investments depart
ment. Healsoi« inchargeof Regulation
V, coveringGovernment-guaranteedloans
to private industry and is custodian for
Government lending agencies.
he - alsoapast national director of the
R. M. A.
Mr. Didhamwas educated at the Uni
versity of Illinoisami at OhioStateUni
versity, receivingaB.S. degreeat O. S. U.
in 3926. In 1948hewas graduated from
theSchool of Banking at the University
'of Wisconsin.
t.eorge H. Emdejoined thebankJune
14, J920and hits l>een in churge of the
iila’iningandbuildingoperations departmer-t*. He was graduated rnagna cum
lau e fioni Cleveland Law School, and
in1:>47,hewasgraduatedfromtheGrad
uateSchool of Bunkingconductedby the
American Bankers Association at Rin
ger- University. His graduation thesis
on "Soil Conservation anti the Banker"
wa* accepted for the libraries of the
School and the Association.
Mr. Lowe attended Cleveland College
anc later tookanumber of coursesspon
soredbytheAmericanInstituteof Bank
ing. HojoinedtheFederal ReserveBank
in 1920, becoming an assistant cashier
in l:)4A.
Mr. Millei entered banking in 1912
with Mellon National Bank. In 1918
joinedthePittsburgh F. R. branch inthe
che;k ci llectiondepartment, and in l|87
w«* transferred to the main office'fit
Cleveland as manager of the check col
lectiondepartment. In 1949hewas*»duat-d fromtheGraduateSchool of Ban!
in* at Rutgers.
FEDERAL RESERVE BANK BOARD— Wilbur D. Fulton and Donald S. Thomp
son are shown above at the first directors’ meeting since they wire appointed
president and first Vice president respectively of the Federal Reserve Bank of
Cleveland. Directors and the two officers are, left to right: Charles J. Stilwell,
president of Warner & Swasey Co.; Joel M. Bowlby, chairman of Eagle-Picher
Co. of Cincinnati; Leo L. Rummell of Ohio State University; Fulton; Lawrence N.
Murray, president of Mellon National Bank &Trust Co. of Pittsburgh; John C.
Virden, chairman of John C. Virden Co. and of the Federal Reserve Bank board;
Sidney A. Swensrud, chairman of Gulf Oil Corp.; Thompson; John D. Bainer,
president of Merchants National Bank & Trust Co. of Meadville, Pa.; Edward C.
Doll, president of Lovell Manufacturing Co. of Erie, and Edison Hobstetter, presi
dent of Pomeroy National Bank of Pomeroy, 0.
TH E
CLEVELAND
NEWS
August 18, 1955
JOSEPHWEREB
Six Here to Attend
School of Banking
A group of Cleveland banking
personnel will leave here Sunday
for the two-week session of the
School of Banking at the Univer
sity of Wisconsinat Madison
Inthegroupwill beDaleBrown,
assistant vicepresident ofNational
City Bank and headof the public
relationssectionat theschool, who
will instruct acourseinpublic re
lations. On Sept 4, Joseph G
Wereb, head of the expense ac
counting department of the Fed
eral ReserveBankhere, will grad
uate fromthe school, completing
the three-year course. He lives at
7511 Whittington Dr., Parma.
Attending for the second year
will be Virgil J. Stephan of 3856
Covington Rd., South Euclid, and
Arthur E. Restel of3253Fairmount
Blvd., Cleveland Heights. Taking
initial courses are Frederick S.
Kelly ot 25551 Richards Ave, Eu
clid. andAndrewF Muroof 1410"
LeroyAve. Thelast four menare
alsowith Federal ReserveBank.
T H E A M E R IC A N
BAN KER
J uly 2, 1955
JOHN W. KOSSIN
Kossin Named Chairman
Pittsburgh Community Chest
PITTSBURGH. Pa—John W. Kosur,
co-president of the Fede:j! Re»»rve
bank of Cleveland incharge..f its Pitl*burgli branch, has beennamedchairman
of the Pittsburgh Commu: ity Chest's
195.1fund raising campaign.
Estimating that 30.000volunteer* will
heneededthisFall whentheRtl l-.-athtr
drivegetsunderway, Mr. Ko--i’i sai l:
“We have ?.. keep pace w::)i ... nvie
development progiam by kiviiiu tr.e
Chest the support it deserves"
Fund raising is not new , . the 53vear-old bonk executive. List year he
was chairman of a sub-divMoii if the
Chest'*Industry andContme.;- Division.
He also headedthe 1953 H- -it Fund ,‘n
the Pittsburgh aiea and to- an x-tive
part in thecampt-ifmto rai^- (uiu^ t>r
the 1952 U. S. Olvmpic ten:.
Gidney Happy Over Treasury Nod
But Will Miss Fund Work H ere
BY AL ROTHENBERG
“There isn’t a single person ingtoWashington.
when the occasion demands. His
A great friend of Cleveland’s among the 900 employes at the Gidneywill not beastranger to frie
nds My: “Ray is dynamic, but
“little people" is about to join bank today who won’t miss Mr. this newventure. He was * fed g
ntle.”
PresidentEisenhower’sWashington Gidney." said Miss Irene Bagley, eral Reserve examiner from1914 eG
idney’sblueeyestwinklewhen
secretarytoGidneysincehecame to1917inWashington.
team.
d
is
c
ussing five-year-old Martha
His businesstitleispresident of hereinthefall of 1944fromNew His round face is aglow when Jean, his only grandchild and
RayGidneytalksabout bisfavorite daughter of John Archibald
theFederal ReserveBankofCleve York.
recreation—golf. "If any score is Gidney. certiliedpublicaccountant
land. but alarge part of Ray M.
Will SuperviseBanks
Gidney’sheart isin theCleveland The controller of the current* 87—that’sokay; lower—darngood; withHaskins4tSells. Another son.
Community Fund.
her—rotten." hesaid. An aide James Brock Gidney. is with the
as thejobof “supervisionof all htigth
WaitingU. S. Senateapproval on h
ebanksaysGidneyconsistent ClevelandWelfareFederation, and
national banks." There are about a
his appointment as controller of 5
ly playsintheloweighties.
another. Dean Robert Gidney, is
0
0
in
th
e
F
o
u
rth
F
e
d
e
ra
l
R
e
s
e
rv
e
thecurrency. Gidneytalkedabout District w{iich Gidney nowheads,
vice president and sales manager
Likes Music, Too
hiseightyeaninCleveland.
f U. S. PotashCo. withheadquar
a
n
d
n
e
a
rly
5
,0
0
0
in
th
e
n
a
tio
n
.
H
e
plays the violin andis hap o
“Most of all. I'll missthe Com In his newpost he will b« re piest w
tersinNewYorkCity.
h
e
n
s
in
g
in
g
.
munityFund," taidthe86-year-old sponsiblefor issuingbankcharters, ‘TU never forget thetime that
SchooledInCalifornia
banker who is president of the semi-annual bank examinations, Mr. Gidneyandagroupof porters
Gidney is enthusiastic about
fund. "It gave me great personal
angspiritual sonp inhis office," California. He was born in Santa
satisfaction to lead a civic en approval of new bank branches s
Miss Bagley recalU. “One thing Barbara and graduated from the
deavorwhichhelpsthosewhoneed andchangesinownership.
iversityof California.
helpmost.
“I’ve known George Humphrey oor policy,” providing you have UnH
e is on the board of trustees
since1944, but we’rejust business d
Accepted Promptly
s
omething worthwhile tosay” of the First Unitarian Cbuarh of
nds,” Gidney said.
“ThoughI didn't seekthepost. I frie
C
le
veland and a member of the
G
e
o
rg
e
G
u
n
d
,
p
re
s
id
e
n
t
o
f
th
e
Gidney will continue to main
immediatelyacceptedthei
fo
llo
levelandTrust Co., seemedtore wingclubs: Union. Philosophi
tain aresidence in Cleveland but C
toserve when George H
ct theviews of most Cleveland cal. Rowfant, Fifty, Pepper Pike
xpects to vacate his suite at fle
Secretary of the Treasury called e
usinessmenwhenhecommented Cuntry Club and Shaker Heights
Shaker Club Apartment*. 19101b
me. I amhonoredtojointhestrong, V
Country Club.
Aken Blvd., Shaker Heights, today:
superbteamintheTreasury." loarnsm
He is anoutstanding banker— When asked about bis first
a
lle
r
q
u
a
rte
rs
.
H
is
a
p
p
o
in
tm
e
n
t,
w
h
ic
h
c
o
m
e
s
Among the “souvenirs" Ray M. Gidney will leave in fromthe President with the rec
officisl action in Washington. .Gid
Ia Washington Before
Cleveland is a collection of Federal Reserve bank ommendation of the secretary of
b
e
m
a
d
e
fo
r
c
o
n
tro
lle
r
o
f
th
e
c
u
r
eyretorted: "GuessHI gK»worn
is wife, Mrs. Jean Gidney, rency. A part of my heart leaves n
in, go over to the Tressury and
note*ranging from$5to $5^00 (circled) indenomi thetfressury, isforafive-yeartermwhH
o
m
b
e
m
a
rrie
d
n
e
a
rly
4
0
y
e
a
rs
C
le
v
e
la
ftfl
w
ith
h
im
."
meet some patple. After that, it
nation. Incidentally, thebaekof thenotes areblank. at$10,000ayear.
ago, says sheis excitedabout go Gidney isknown tobe“tough’ w
ill b« alot of work."
AMERICAN BANKER
April
29, 19 55
the
Speakers and panel
ReserveItankof Clevelai
at Newark. O. Seated,
Wilhui.D. Fulton, lirsl vin--president.
ederal Vserve Kank. speaker; Chair
LOOKINC RATHER BORED, Ostendorf. a Federal Reserve employee, watches part of F
an Francis I*. Kennedy, president,
the torn Hittv money soupin flames. They burned $485,000 today and dispose m
Newark ( learinc House Association,
of about .>! *,0QQ000 a iv. nth, r .oStly in wnrncuf SI bills.
andpresident, Newark Trust Co.; Edi
son Hobstetter, president. Pomeroy
National Hank. I*«mcr«>. and me.nbcr.
hoard of directors, federal R--ser\e
Hank of Cleveland, speaker. an<< lohn
CAMBRIDGE JEFFERSONIAN
\\.Sachs, vice-president, NewarkTriht
Co.. and secretary-treasurer and manDec embe r 11, 1955
Newark Clearing House AsmiWITH MONEY TO BURN. |osephOstendorf at the fur
nace. andRoy Reinker at thetrunk loadaspecial furnace
at the Federal Reseive Bank with filthy lucre.
Bank Job Offers
Money to Burn
By BILL BARRETT
They burned up$48.>,000at the Federal Reserve Bank
here today.
Just as casually as you'd dispose of a loaded waste
basket, a
of Federal Reserve employees bundled
293.000piecesof fuirency Into ^ ^
other ciiizens
Crook New
President Of
Association
Cutler, trade economist for the
Federal Reserve Bank at Cleve
land, 'TTmrsday—evening
Berwick Hotel.
Dr. Cutler, formerly
faculties at
Carolina
couple
ners ripped off. Or ih-v were
stuck together here and there
wiih tape.
A group of horrified news
papermen who wau-hed all E. Sixm
this did their best toslop the jf*
bill burning. They insisted the double
money looked all right
them. They even offered a chance of
take It off the Governments
hands without all this fuss. some
The pas file li
Pleading Ignored
Desiritator-1
Their pleading was ignored. the
The Federal Reserve folks tie- ^Ih
cis
aismoneythif dirty, torn loot just F
yahrenheit.
burn upa loadof. say.
This sounds hard for Hie wurth ..t dollar bills
layman tobelieve, but thepro...
pie at the Federal Roseive Dictated by Economy
Bank regard currency as just Crews of girls, soiling i»*pci
so much paper. It's either mpney as it's brought in Iron,
clean or It's dirty, and the member hanks, decide which
duly stuff must go.
of thebills they wouldn't care
But (hey areperfectlyaware to keep in their purses and'
this filthy money gets burned.
It used to be sent to Wash
infiion for destruction before
LODI REVIEW aneconomy movelast summer
ictated that ail but Federal
Dec• 17, 1955 d
Resetve notes be destroyed
here.
How dors it feci toburn up
tins money every day?
"Just like burning waste
per." commented Joseph Os
ndorl 4204 W 22d St.. *11
ng a \awn. “We burn about
0.000.000 a month.
"Wenever pas?out samples,
her." said his partner in
e bulimic. Roy Reinkrfer,
211 Bethanv Ave., as he
immed the furnacedoor and
rnedon thegas
New Officers of Cleveland
Conference N A B A C
THE AMERICAN BANKER
Apri l 50, 1<*?5
H;>nk. Coshocton. andJames N. Miller,
president. First National Itank. New
ark. panel members; Ro«i>r K. ( louse,
tice-president and secretary, Federal
ReserveHank, moderator: Fred(I. Kiel,
senior economist, Federal Reserve
I’ank. speaker; Dwight M. Warner,
president Ctica Savings Kank. llica,
C. (’. I’ruitl. Jr.. executive vice-presi
dent, Fairfield National Hank. Lanraster, andJeromeIt. Norpell. director.
First National Kank. Newark, panel
members.
F R C om p letes Six-Conference Series
O.—Banking and business prospects in the immediate future
tremi in bank reedits were the chief topics discussed at a recent
hankers conferences attended by approximately litM) officers and
■inksin25Ohiocvu'ities.
first vice-; resilient tionnl Bank. Newark, and Dwight M.
ReserveBank, aprincipal Warner, president, t'tica Savings Bank,
of the six conferences, Utica.
Hanking Prospects for *anton. March 25—Chairman Harley
J. Fast, president. Canton Clearing
House Association, and president and
trust officer.CantonNational Bank. Panel
mem- "'embers: J. ' •Goodin, vice-president.
Reserve H
"'Ur
anel‘nt*•i.n
frits
Coie
.:r.Fle
dW
uth.
rie
e-pieB
sid
d.t,i.-b
Allia
nc.eIla
First„Hostetle
. r ass.is,tant vic
. o-presi- fe
Na|t.
tiop
nre
alsid
Baennkt.. A
lli.-in
; PS
aa
uvlin
W
nM
ou.oc'oere
g.sSh
Baanlk,
the Fede.-Sl Reserve Bank spoke Mogadore; Ray H. Adkins, president. NaMMisheld, Canton and \\ouster tionnl Bank of Dover. Dover, andJames
The Unsteady Pyramid of B. Hall, cashicr and s.-eretarv. Ohioand Hvd O. Kiel, senior Merchants Trust Co.. Massillon
tH rJi
^v9Vcvl BunkJ "ouster. March2'V—Chairman EllisG.
™
caosohsie
ayin
ne
el Cm
oeum
nty
N:atio
al.
meetings on ‘HowISoni'
lid Is"H
the C
Ba
am
nkp., W
ter,r. WP
bers
U,n(>
Uutlook.
Beam, cashier. Citizens National Bank,
ibe conferences, sponsored jointly by Wooster; J. M. Horst, president, Orrville
the Federal Reserve Bank of Cleveland Savings Bunk. Orrville; C. W McBride,
a:id local banks or clearing house asso- vice-president andcashier, Farmers State
nations, were arranged by Roger R. Bar.!< <■' West Salem: K. B. Carv. viceOouse, vice-presi.lent and secretary of president. ’ '--.s Bank. Millersburg. and
the Federal Reserve Bank, whoactedas. Leroy R. We. n. . cashiir. National Hank
moderatorofthemeetings.
of Orrville.
The chairmen and panel member.s at.
*
~
thesix conferences were:
Defiance, Much 17—Chairman Denver
1. Dreher. p»esident, Henrv-Defiance
County BankersAssociation, andcashier.
Hamler State Bank, Hamler. Panel
members: O. W. Newton, cashier. State
Bankof Defiance; F. E. Witzerman, viceprc-Mdent and cashier, Citizens Na
tional Bankof Bryan; Frank L. Guthrie,
vice-president. Farmers State Savings
B:\nk, Delt;:; Walter L. Hoy, treasurer.
Community Bank. Napoleon, and Elmer
R
.au
Cseenotre
W
n. , cashier. Peoples State Bank.
THE CANTON REPOSITORY
March 26, 1955
1 0 0 C o n f e r o n B a n k in g P r o b le m s
Rural '54
Appears
"Healthy"
Farm ers Mu*t Operate
In Buyer’s Market,
Meibuhr Heads Cleveland
N A B A C , Klecka Vice-Pres.
Say* Federal Speaker
A noteof optimismwax sound
ed for agriculture Tuesday even
ing when Claude Hummel, agri
culture agent for the Fedoral Re
servebank of Cleveland, address
ed Lodi Rotarians and farmown*
er-management guest*
The speaker, introduced by
Clarence Crum and Rex Berry,
stated that "prospects for a heal
thy and properous era lies ahead,
provided we realize that we arc
now in a buyer’s market."
Hummel toldthegroupthat 1954
will usher in a more competitive
year than has been experienced
sinceWorld War II. He cautioned
against complacency when he
statedthat "consumersof all goods
mpst be courted for their spend-
ingdollar, for weareentering the
era of increased competition and
improved goods."
"Order Taking” Past
Hummel pointed out to the
(roup that large business has al
ready anticipated a“tougher sell
ingmarket" in 1954andhastaken
the necessary steps to overcome
a business slump. "Advertising
budgets for next year are sub
stantially increased." he said.
“Manufacturers and distributors
knowthat wearenolonger in an
order taking era.”
CLEVELAND, O—Arthur C. Meibuh;
auditor of the Bank of Ohio Co., was
elected president of the Cleveland Cin.
ference. National Association of Ban*
Auditors andComptrollers, at theannual•
meeting here.
Frank J. Klecka, assistant general
auditor of the Federal Reserve Bank of
Cleveland, was elected first vice-president, and Norman M. Hausser, Union
Bank of Commerce, second vice-presi
dent. Re-electedsecretary-treasurer wa*
Franklin W. Aust, Sr., of the Cleveland
Trust Co.
Mr. Meibuhr, who succeeds Robert NVieracker, auditor of the Central Na
tional BankofCleveland, beganhisbank
ing career 30 years ago with the old
State Banking A Trust Co. He joined
theBankof OhioCo. in1947asassistant
comptroller andwas promotedtoauditor
in 1951. Heisamember of theNational
Office Management Association and a
past treasurer of Cleveland Chapter,
American Instil.>. of Rankin*.
Hostetler, manager of the Cleveland Federal Reserve Bank'a research department- Wilbur Du
Fulton, the reserve bulk's fir* vie, present, and Harley. J.*fist.
n lD T i i
*Ro«* Clouse, tha res
Heorv
U**^*r>
on pre
Ho
ste
tle
ad
ndse
Fcure
lto
vaesta
nd
strpdre
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m2 m
e banksc,,U
vrr.
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en
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mlk
od,eara
torFafo
is--
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tosoelrte C ja irm ei
c w. OKI E
WC ST. CLAIR
C
S u b*0»visio n
heavy
in d u s t r y
/T C &
f in a n c e
0 . D. B e e a
ION
J A. A p p le <
F E D E R A L
R E S E R V E
B A N K E R S
Many officers and employees of the bank contribute
generously of their time and money to civic and
community efforts. At top, John W. Kossin, vice
president in charge of Pittsburgh Branch, was 1953
A C T I V E
IN
C IV IC
A F F A I R S
campaign chairman of the Allegheny County Community Chest. Bottom, Phil J . Geers, cashier, Cincinnati Branch (rig h t), took a leading part in the
annual drive for funds for retarded children.
B A N K E R S
D A Y
Officers and employees of banks in various sections
of the Fourth District were guests of the Federal
Reserve Bank of Cleveland at its “ Bankers Day at
Federal” programs. T op : A typical group of
A T
F E D E R A L
visiting bankers pause for lunch before beginning
their tour of the bank. Bottom : Bankers viewing
one of the new automatic coin counting and wrapping machines in operation.
G U E S T LISTS F O R SPECIAL L U N C H E O N S GIVEN B Y
JOHN C. VIRDEN, C H A I R M A N O F T H E B O A R D O F DIRECTORS
HONORING
W I L B U R D. FULTON, PRESIDENT
D O N A L D S. TH OMPSON, FIRST VICE PRESIDENT
FE D E R A L RESERV E B A N K O F C L E V E L A N D
iV E L A N D
LUNCHEON
*honoring
.
■
^
W I L B U R D. F U L T O N
President
and
D O N A L D S. T H O M P S O N
First V ic e President
T u e sd a y , J a m
16 , 1 9 5 3
53
http://fraser.stlouisfed.org/
Federal Reserve Bank
of St. Louis
_______________________
L U N C H E O N
hot
W I L B U R
D .
F U L T O N
P re s id e n t
D
O
N
A
L D
S. T H O M
First V i c e
P S O N
P re sid e n t
^ u n e
t6,
* 9 5 3
Presiding
J o h n C. Virden, Chairman of the Board
Federal Reserve Bank of Cleveland
Chairman of the Board, John C. Virden Company
E llsw o r th H . A ugustus
Raymond F . Evans, President
Diamond Alkali Company
A rthu r D. B a l d w in
G arfield, Baldwin, Jamison,
Hope & Ulrich
Clyde T. Foster, President
Standard Oil Company of Ohio
W illiam G. Bernet, President
United States Truck Lines, Inc.
Joseph W . Fribley, President
R alph M . Besse
Executive Vice President
Loring L . Gelbach, President
Central National Bank of Cleveland
Cleveland Electric
Illuminating Company
D r. T. K e ith G le n n a n , President
The Cleveland Cap Screw Co.
Case Institute of Technology
A l l e n L. Billingsley, President
Fuller & Smith & Ross, Inc.
Robert F. B la c k, President
The White Motor Company
Alexander C. B r o w n
Sterling E . Graham
General Manager
Cleveland Plain Dealer
George Gund, President
Chairman of the Board
The Cleveland Trust Company
Cleveland Cliffs Iron Company
Member of
Federal Advisory Cowncil
H o n . Thom as A . Burke, Mayor
from Fourth Federal Reserve District
City of Cleveland
G eor g e W . Co d r in g t o n
Sidney B . Congdon, President
The National City Bank
of Cleveland
Frederick C. Crawford
Chairman of the Board
C. W . H a n n o n , President
Murray-Ohio Manufacturing Co.
W illiam J. H a r s h a w , President
Harshaw Chemical Company
Robert H . Hoge, President
Clark Controller Corporation
Thompson Products, Inc.
J o h n R. Hoover, President
A d m i r a l Ch a r l e s G. D e K a y
U nited States Navy
Field Branch
Bureau of Supplies and Accounts
B . F. Goodrich Chemical Co.
N a t R. H o w ard, Editor
Cleveland News
George S. Dively, President
Harris-Seybold Company
E lt o n Hoyt, II, Senior Partner
D r. G. Brooks E arnest, President
Fenn College
D a vid S. I n g a l l s
Pickands, Mather & Company
R. L. Ireland
Chairman of Executive Committee
P ittsb u rg h Consolidation
Coal Company
P a u l W . Johnston, President
E rie R ailroad Company
Elm er L. Lindseth, President
P ickands, M ather & Company
Curtis Lee Smith, President
Cleveland Cham ber o f Commerce
The Sherw in-W illiam s Company
Member of
Industrial Advisory Committee
F ederal Reserve B ank o f Cleveland
How ard J. M cG inn, President
E ato n M a nufacturing Company
Jo hn P . M cW illiam s
Charles J. Stilw e ll, President
Chairman of the Board
Youngstow n Steel Door Company
Member of
Industrial Advisory Committee
Federal Reserve B ank o f Cleveland
Dr. Jo hn S. Millis, President
The W arn e r & Swasey Company
Directory F e d e ral Reserve B ank o f
Cleveland
V ernon Stouffer, President
Stouffer C orporation
Jo h n K . Thompson, President
W estern Reserve U niversity
U nion B ank o f Commerce
James L. M yers, President
Cleveland G raphite Bronze Co.
Joseph H . Thompson, President
Herm an R. N e f f , President
M. A. H a n n a Company
George S. R ider Co.— E ngineers
Member of
Industrial Advisory Committee
F ederal Reserve B ank o f Cleveland
Chairman of the Board
Oglebay, Norton & Company
Jo h n Sh erw in , Partner
A r th u r W. Steudel, President
Cleveland E lectric Illu m in atin g
Company
Robert C. Norton
Chairman of the Board
Towm otor C orporation
Cleveland P ress
N ational Screw & M a nufacturing
Company
Member of
Industrial Advisory Committee
Federal Reserve B ank o f Cleveland
Oglebay, N orton & Company
L e s t e r M. S e a r s
Louis B. Seltzer, Editor-in-Chief
Herbert P. Ladds, President
Laurence H . Norton, Director
Jo h n H. Redhead, President
L ake City M alleable Company
L. Carl W eiss, Besident Partner
E rn st & E rn st
Rev. Frederick E. W e l f l e , S. J .,
President
John C arroll U niversity
Charles M. W h it e , President
Republic Steel C orporation
Le w is B. W illia m s
C l a r e n c e I. O c h s
Chairman of the Board
E ato n M a n ufacturing Company
Chairman of the Board
N atio n al C ity B ank o f Cleveland
F E D E R A L R E SE R V E B A N K O F C L E V E L A N D
Officers
Alfred H . Laning, Vice President and Cashier
Harold E. J . Smith, Vice President
P a u l C. Stetzelberger, Vice President
FEDERAL RESERVE BANK OF CLEVELAND
LUNCHEON
h o n o r in g
W IL B U R
D. F U L T O N
President
amd
D O N A L D
S. T H O M P S O N
First V i c e President
★
QYeJnesday, ^une 17> 1953
Presiding
J o h n C. Virden, Chairman of the Board
F e d e ra l Reserve B a n k o f Cleveland
Chairman of the Board, Jo h n C. V ird e n C om pany
P eter B a ll
B a ll, B u rg e & K ra u s
Francis H . B eam
Senior Vice President
N a tio n a l C ity B a n k o f Cleveland
G e o r g e C. B r a i n a r d
Chairman of the Executive
Committee
A d d resso g rap h -M u ltig rap h
C orporation
P ercy W . B r o w n
H ornblow er & W eeks
H a r r y F . B urm ester
Senior Vice President
U nion B a n k o f Commerce
W . R u s s e ll B u r w e l l
Chairman of the Board
T he B ru sh E le ctro n ics C om pany
Fred H . Chapin, President
N a tio n a l Acm e C om pany
H a r o l d T. C l a r k
T h om a s C. Coughlin
Chairman of the Board
B a n k o f Ohio
R a n d o l p h E id e
Chairman of the Board
Ohio B ell Telephone C om pany
Sam W . Em erson, President
The Sam W . E m erson Com pany
Member of
Industrial Advisory Committee
F e d e ra l R eserve B a n k o f Cleveland
E l l wood H . F ish er
Chairman of the Board
T he F ish e r B ros. C om pany
M ervin B . Fra n c e, President
Society fo r Savings in th e
C ity o f C leveland
I. F . Freiberger
Chairman of the Board
C leveland T ru st Com pany
W . Y ost F u lt on
F u lto n , R eid & Com pany
T o m M . G ir d l e r
Chairman of the Board
R epublic Steel C orporation
J o h n A . Greene, President
Ohio B ell T elephone Com pany
J o h n A. H adden
A rte r, H a d d en , W ykoff & V an D uzer
E . E . H e rr , President
A m erican S avings B a nk Co.
A lb e rt M . Higley, President
The Albert M . Higley Company
J o s e p h C. H o s t e t l e r
B ak er, H o ste tle r & P a tte rs o n
R obert H . J a m is o n
G arfield, B aldw in, Ja m iso n ,
H ope & U lrich
H on . P aul Jones
U n ite d S ta te s D istric t Judge
Adrian D . Joyce
Chairman of the Board
G lidden C om pany
D w ig h t P . Joyce, President
G lidden Com pany
H a y d e n B. K lin e , President
In d u s tr ia l R ayon C orporation
Jam es F . Linco ln, President
L incoln E le c tric Com pany
C h arles F . M c C a h il l
General Manager
T he C leveland News
C. B. M c D o n a l d
M cD onald & C om pany
A . K e lv in Sm ith, President
Llo yd D . M c D o n a l d
Executive Vice President
T he W a rn e r & Sw asey Com pany
L ubrizol C orporation
F r a n k l in G. Sm ith
J o h n C. M c H a n n a n
Chairman of the Board
C e n tra l N a tio n a l B a n k o f Cleveland
G e o r g e E . M e r r if ie l d
Vice President and Treasurer
T he H ig b ee Com pany
Ch arles B. M errill, President
M errill, T u rb en & C om pany
W a l t e r F . M u n fo r d , President
Chairman of the Board
O sborn M a n u fa c tu rin g Com pany
a n d Ohio R ubber Com pany
K en t H. S m it h
Chairman of the Board
L ubrizol C orporation
A. A . S t a m b a u g h
Chairman of the Board
S ta n d a rd Oil C om pany
A m erican S teel & W ire Com pany
Clarence M. T aylo r
M aynard H. M urch
T he M a y n a rd H . M urch Co.
J o h n P . M u rp h y , President
T he H igbee C om pany
Executive Director
The Cleveland C linic F o u n d a tio n
Harrie S. Taylor, President
O glebay, N o rto n & Com pany
S te r l in g N e w e l l
Squire, S an d ers & D em psey
T h o m a s F. P a t t o n .
Asst. President and
First Vice President
R epublic S teel C orporation
D o n a ld C. P otts, President
P itts b u rg h S team ship D ivision
U n ite d S ta te s S teel Corp.
J o h n W . R e a vis
Jo n e s, D ay, Cockley & R eavis
G en e r al H e r m a n Safford
President
Ohio R ubber C om pany
H e n r y S. S h er m a n
Chairman, Board of Trustees
S ociety fo r S avings
in th e C ity o f Cleveland
Th om as L . Sidlo, President
The M usical A rts A ssociation
H a r r y E . S m a ll, President
B a n k o f Ohio
H a s s e l Tippit, Managing Partner
E rn s t & E rn s t
W a l t e r J . T u o h y , President
C hesapeake & Ohio R ailw ay Co.
R a l p h S. T y l e r
S quire, S anders & D em psey
J . B a sil W a r d , President
A dd resso g rap h -M u ltig rap h Corp.
A lb e rt J . W e a th e r h e a d , J r .
President
W ea th e rh e ad Com pany
Robert A . W e a v e r
Chairman of the Bourd
F e rro C orporation
L. L. W h it e , President
N ickel P la te R a ilro a d Com pany
J . D. W r ig h t , President
T hom pson P ro d u c ts, In c.
FED E R A L RESERV E B A N K OF CLEV ELAN D
Officers
Roger R . Clouse, Vice President and Secretary
M a r tin Morrison, Vice President
L. M e r le H o stetler, Director of Besearch
BUSINESSMEN'S L U N C H E O N
F E D E R A L RESERVE B A N K OF C L E V E L A N D
N O V E M B E R if, 1953
GUEST
LIST
CHARLES K. A R T E R
Arter-Hadden- Wykoff 8r Van Duzer
H O W A R D L. B A R K D U L L
Squire, Sanders 81 Dempsey
R A L P H M. BESSE, Executive Vice President
Cleveland Electric Illuminating Company
G E O R G E C. BRAINARD, Jr.
John C. Virden Company
R A L P H L. DICKEY, President
Kelley Island Lime 8r Transport Company
IAN R. DOWIE, President
Brewing Corporation of America
R A N D O L P H EIDE, Director
Ohio Bell Telephone Company
W E N D A L L A. FALSGRAF
Falsgraf Reidy & Shoup
BENJAMIN F. FIERY
Baker-Hostetler & Patterson
f
A. E. GIBSON, President-General Manager
Wellman Engineering Company
N. R. HOWARD, Editor
The Cleveland News
A L L E N C. KNOWLES, President
South Side Federal Savings & Loan Association
JAMES F. LINCOLN, President
Lincoln Electric Company
BUSINESSMEN'S L U N C H E O N
F E D E R A L RESERVE B A N K OF C L E V E L A N D
N O V E M B E R 17, 1953
GUEST
LIST
JOHN L. Me C HORD
Calfee Fogg McChord & Halter
M A Y N A R D H. M U R C H
The Maynard H. Murch Company
G L E N N G. NUSS, President
White Sewing Machine Corporation
P. L. PISCHKE, Executive Vice President
American MonoRail Company
J. F. STRNAD, President
Lempco Products, Inc.
SHELDON K. TOWSON, President
Elwell Parker Electric Company
A. P. WILLIAMSON, President
Dill Manufacturing Company
BEN D. ZEVIN, President
World Publishing Company
Officers of Federal Reserve Bank
JOHN C. VIRDEN, Chairman of the Board
WILBUR D. FULTON, President
D O N A L D S. THOMPSON, First Vice President
R O G E R R. CLOUSE, Vice President and Secretary
A L F R E D H. LANING, Vice President and Cashier
MARTIN MORRISON, Vice President
H A R O L D E. J. SMITH, Vice President
M E R L E HOSTETLER, Director of Research
CAR L F. EHNINGER, General Auditor
E D U C A T O R S
S T U D Y
F E D E R A L
T o p : Professors of Money and Banking from
colleges in the Fourth District discussed Federal
Reserve functions and economic conditions during
a two-day meeting at the Federal Reserve Bank of
R E S E R V E
O P E R A T I O N S
Cleveland in November, 1953. Bottom : A group
of business education teachers about to view the
film, “A Day at Federal Reserve Bank of Cleveland,”
while guests at our bank, October 13, 1953t
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CURREN CY EX H IBIT
L i s t of banks to which exhibit was loaned in 1953
The Th ird National Bank of C i r c l e v i l l e
C i r c l e v i l l e , Ohio
The Union Banking Com pany of Colum biana
C o lum biana, Ohio
F i r s t National Bank a t D illonvale
D illonvale, Ohio
The National Bank of D over
D o v e r, Ohio
The F a r m e r s State Bank, of Englew ood, Ohio
Englew ood, Ohio
The N ational Bank of Hudson
Hudson, Ohio
The N ational Bank of L i m a
L i m a , Ohio
The F a r m e r s N ational Bank of M a n c h e s te r
M a n c h e s te r , Ohio
The New A le x a n d ria National Bank
New A le x a n d ria , P e n n s y lv a n ia
The F i r s t National Bank of B e l l e Vernon
N orth B e lle V ernon, P e n n s y lv a n ia
The O berlin Savings Bank Com pany
O b erlin , Ohio
The F i r s t N ational Bank of P r e s t o n s b u r g
P r e s t o n s b u r g , Kentucky
F i r s t N ational Bank of Seb rin g
S eb rin g, Ohio
The Sylvania Savings Bank C om pany
S ylvan ia, Ohio
The L a k e County N ational Bank of P a i n e s v i l l e
Willoughby B r a n c h
Willoughby, Ohio
-23-
is much yet to be done. Until other methods of accomplishing these ob
jectives are devised, i t would appear that one of the most effective
and efficien t ways of bringing these important matters to the attention
of leaders in business, educational and public lif e is through an in tel
lig en t and objective bank and public relations program of the Federal
Reserve banks 'which immediately or ultim ately benefits a ll groups com
prising the general public.
Therefore, vith such a program being executed on a business-like
basis, there seems to be an even greater challenge to move forward "with
an alert and aggressive program which w ill make further progress in ac
complishing the ESystem’s and this bank's objectives of a bank and public
information and public relations program.
January 7 , 1954
@FedFRASER