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FEDERAL RESERVE BANK
OF CLEVELAND

Twenty-fifth Annual Statement

CLeveLand,Ohio, January

12,

1940

To the Nonmember Banks of the
Fourth FederaL Reserve District:
I am pleased to present a comparative statement of
FederaL Reserve Bank of CLeveLand at the close of business
December 30, 1939, and December 31, 1938, as made to the
member banks of this district.
This statement reflects the earnings and expenses for
the year, and disposition of net profits.
It is being sent to
you because of my belief that aLLour banks are interested in
the affairs of the FederaL reserve bank of this district.
I am sure that the statement, and other included
information, wiLL merit study by the directors and officers
of your bank.
Very truly yours,

President.

COMPARATIVE

STATEMENT

OF CONDITION

ASSETS

Dec. 31, 1938

Dec. 30, 1939

$ 457,000,000.00

$ 491,000,000.00

810,390.00

816,200.00

.

326,881,297.91

536,910,306.11

.

23,751,047.32

21,339,616.31

.

808,442,735.23

1,050,066,122.42

.

191,000.00
54,040.00
50,528.09
617,847.43
257,819,500.00

113,000.00
541,619.23
-0314,941.80
259,222,000.00

.

258,732,915.52

260,191,561.03

Federal Reserve notes of other banks

.

2,136,500.00
97,537,751.59
5,547,260.11
6,527,538.81

Cash reserves held by this bank against deposits and note
circula tion:
Gold certificates (lodged with the Treasurer of the United States)
for account of the Federal Reserve Agent as collateral deposited
by this bank when it obtains Federal Reserve notes. . . . . . . . . ..
Redemption fund in the hands of the Treasurer of the United
States to be used to redeem such Federal Reserve notes of this
bank as are presented to the Treasury for redemption

.

Gold certificates (lodged with the Treasurer of the United States)
in the Interdistrict Settlement Fund for the purpose of settling
transactions between Federal Reserve banks

,

Other cash
Total cash reserves

Bills and Securities:
Bills discounted:
Secured by United States Government securities, direct and
guaran teed

.

Otherwise secured or unsecured

.

Bills bought in the open market

.

Industrial advances-working

.

capital loans

United States Government securities
Total bills and securities

Miscellaneous Assets:

Checks and other cash items in process of collection

.

Bank premises, less reserves

.

All other miscellaneous assets

.

1,966,500.00
74,508,896.49
6,016,846.02
5,035,504.66

Total miscellaneous assets

.

87,527,747.17

111,749,050.51

Total Assets

.

$1,154,703,397.92

$1,422,006,733.96

COMPARATIVE STATEMENT OF CONDITION
Dec. 31, 1938

Dec. 30, 1939

$ 427,467,430.00

$ 463,123,130.00

477,880,351.72

680,193,790.00

.

116,295,676.59

113,236,335.65

.

25,577 ,440.74

45,971,903.99

.

619,753,469.05

839,402,029.64

.

75,046,512.26

86,695,504.40

.

133,518.52

126,454.24

.

75,180,030.78

86,821,958.64

13,546,000.00

13,829,700.00

14,322,789.59

14,322,789.59

1,007,416.00

1,007,126.09

LIABILITIES
Federal Reserve notes in circulation:
Federal Reserve notes in actual circulation, payable on demand.
These notes are secured in full by discounted paper, United
States Government securities, or gold certificates. . . . . . . . . . . ..

Deposits:
Reserve deposits maintained by member banks as legal reserves
against the deposits of their customers

.

United States Government deposits carried at the Reserve bank
for current requirements of the Treasury
Other deposits
Total deposits

Miscellaneous Liabilities:
Deferred items, composed mostly of uncollected checks on banks
in all parts of the country. Such items are credited as deposits
after the average time needed to collect them elapses
All other miscellaneous liabilities
Total miscellaneous liabilities

Capital and Surplus:
Capital paid in, which is 50% of amount subscribed] and which
represents 3% ofthe capital and surplus of member banks

.

Surplus:
(Section 7)- That portion of accumulated net earnings which
this bank is legally permitted to retain
(Section 13b)-Net

.

amount paid by the Secretary of the Treas-

ury to further the making of working capital loans .. . . . . ...

3,426,262.50

3,500,000.00

$1,154,703,397.92

$1,422,006,733.96

Reserves for contingencies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Liabilities......................................
Commitments to make industrial advances.

$

2,233,628.22

$

1,140,470.15

COMPARISON OF EARNINGS AND EXPENSES
For the years 1938 and 1939
1939

1938
Current Earnings:

$

Discounted bills. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

10,200.37

$

4,067.70
216.27

Industrial advances

.

240.08
38,489.46

Commitments to make industrial advances

.

15,267.11

14,198.58

United States Government securities

.

3,350,196.32

3,732,788.04

All other

.

76,228.00

76,202.68

.

3,490,621.34

3,845,840.55

.

2,768,878.77

2,848,060.03

Less reimbursements for certain Fiscal Agency and other expenses

262,467.79

255,427.47

.

2,506,410.98

2,592,632.56

Assessments for expenses of Board of Governors

.

159,503.41

150,737.44

Cost of Federal Reserve currency

.

131,743.26

117,118.36

Total current expenses

.

2,797,657.65

2,860,488.36

.

692,963.69

985,352.19

Profits on sales of United States Government securities

.

816,488.17

432,876.02

All other

.

22,459.41

24,926.42

.

838,947.58

457,802.44

Deductions from Current Net Earnings

.

462,284.68

224,363.38

Net additions

.

376,662.90

233,439.06

Net Earnings

. $

Purchased bills

.

Total current earnings
Total

Operating

Expenses

(including

depreciation

18,367.28

on bank

premises)

Net Operating Expenses

Current Net Earnings
Additions to Current Net Earnings:

Total additions

DISTRIBUTION

1,069,626.59

$

1,218,791.25

OF NET EARNINGS
$

Reserve for losses on industrial advances (Section 13b) . . . . . . . . . ..

20,000.00

$

-0-

227.04

-0-

-0-

321,838.05

Paid United States Treasurer (Section 13b)

.

Reserve for depreciation on bank premises

.

Dividends paid

.

799,145.05

823,215.70

Reserves for contingencies

.

250,254.50

73,737.50

Total.

$
" $===1~,0=6=9=,6=2=6.=5=9

1,218,791.25

FEDERAL RESERVE BANK OF CLEVELAND
DIRECTORS AND OFFICERS-1940
DIRECTORS
G. C. BRAINARD, Chairman
R. E. KLAGES, Deputy Chairman
Term
Expires
CLASS A
H. B. McDOWELL, President, The McDowell National Bank of Sharon, Sharon, Pa
F. F. BROOKS, President, First National Bank at Pittsburgh, Pittsburgh, Pa
B. R. CONNER, President, The First National Bank of Ada, Ada, Ohio

1940
1941
1942

CLASS B
R. P. WRIGHT, Secretary-Treasurer, Reed Manufacturing Co., Erie, Pa
G. D. CRABBS, President, Philip Carey Manufacturing Co., Cincinnati, Ohio
J. E. GALVIN, President, Ohio Steel Foundry Co., Lima, Ohio

1940
1941
1942

CLASS C
G. C. BRAINARD, President, General Fireproofing Co., Youngstown, Ohio
C. STONE, Leaf Tobacco Grower and Dealer, Lexington, Ky
R. E. KLAGES, President, Columbus Auto Parts Co., Columbus, Ohio

1940
1941
1942

J.

OFFICERS
M.
F. J. ZURLINDEN
W. H. FLETCHER .. '"
G. H. WAGNER
W. F. TAYLOR
R. B. HAYS

J. FLEMING,

President

First Vice President
Vice President
Vice President
Vice Pres. & Cashier
Asst. Vice Pres. & Secy.

C. W. ARNOLD
E. A. CARTER
A. G. FOSTER
H. E. J. SMITH
F. V. GRAYSON

Assistant Vice Pres.
Assistant Cashier
Assistant Cashier
Assistant Cashier
Auditor

MEMBER, FEDERAL ADVISORY COUNCIL
B. G. HUNTINGTON,

President, The Huntington

National Bank of Columbus, Columbus, Ohio

COUNSEL
SQUIRE,

INDUSTRIAL

SANDERS

& DEMPSEY

ADVISORY COMMITTEE

F. A. SMYTHE, (Chairman)
President, Thew Shovel Co.
Lorain, Ohio
D. R. DAVIES, Chairman
Acme Machinery Co.
Cleveland, Ohio

H. R. NEFF, President
The Geo. S. Rider Co.
Cleveland, Ohio

D. C. SWANDER, President
Columbian Vise and Mfg. Co.
Cleveland, Ohio

E. C. FOLSOM, President
Ottawa River Paper Co.
Toledo, Ohio

FEDERAL RESERVE BANK OF CLEVELAND
DIRECTORS AND OFFICERS-1940

(Continued)
CINCINNATI

BRANCH OF FEDERAL RESERVE BANK OF CLEVELAND
DIRECTORS

Term
Expires

F. A. BROWN (Chairman), Agriculturist, Chillicothe, Ohio
Third Union Trust Company, Cincinnati, Ohio

J. .T. ROWE, President, The Fifth
B. J. LAZAR, Managing Director

,

W. H. COURTNEY, President, First National Bank and Trust Company of Lexington, Lexington, Ky
S. B. SUTPHIN, President, I. V. Sutphin Co., Cincinnati, Ohio

1940
1940
1940
1941
1941

OFFICERS
B. J. LAZAR
H. N. OTT
R. G. JOHNSON
P. J. GEERS

PITTSBURGH

Managing Director
Cashier
Assistant Cashier
Assistant Cashier

BRANCH OF FEDERAL RESERVE BANK OF CLEVELAND
DIRECTORS

G. T. LADD (Chairman), President, United Engineering & Foundry Co., Pittsburgh, Pa
S. W. HARPER, President, Wheeling Dollar Savings & Trust Co., Wheeling, W. Va

1940
1940

P. A. BROWN, Managing Director
·····························
CLARANCE STANLEY, President, The Union Trust Company of Pittsburgh, Pittsburgh, Pa
H. S. WHERRETT,

.1940
1941

President, Pittsburgh Plate Glass Co., Pittsburgh, Pa

1941

OFFICERS
P. A. BROWN

Managing Director

D. B. CLOUSER
F. E. COBUN
C. J. BOLTHOUSE

MEMBER BANKS IN OPERATION

···· . Cashier
Assistant Cashier
Assistant Cashier

IN FOURTH DISTRICT,

DECEMBER 31, 1939
State

Kentucky
Ohio-Cincinnati
Ohio-Cleveland
Pennsylvania
West Virginia

···········································
territory
territory

.
.
.
.
.

National

Total

7
17
83
25

52
92
152
200

3

8

59
109
235
225
11

135

504

639

FOURTH DISTRICT

STATE BANKS ADMITTED TO MEMBERSHIP

The Gnadenhutten Bank, Gnadenhutten, Ohio
The Macedonia-Northfield Banking Company, Northfield, Ohio
The City Trust and Savings Bank, Youngstown, Ohio
The Central Bank Company, Lorain, Ohio
The Ft. Recovery Banking Company, Fort Recovery, Ohio
The Sylvania Savings Bank Company, Sylvania, Ohio
The Antwerp Exchange Bank Company, Antwerp, Ohio
The Waterville-State Savings Bank Company, Waterville, Ohio
,
The Citizens Bank of St. Bernard, Saint Bernard, Ohio
,
Bank of Elizabeth, Elizabeth, Pennsylvania
,
The Reading Bank, Reading, Ohio
The Kipton Bank Company, Kipton, Ohio
The Peoples Savings Bank Company, Mount Gilead, Ohio
The Middle Point Banking Company, Middle Point, Ohio
The Farmers & Merchants Bank Company, Sylvania, Ohio
Iron & Glass Dollar Savings Bank of Birmingham, Pittsburgh, Pennsylvania
Kentucky-Farmers Bank of Catlettsburg, Kentucky, Catlettsburg, Kentucky
The State Savings Bank of Woodville, Woodville, Ohio
The Farmers and Citizens Banking Company, Monroeville, Ohio
,
The Croton Bank Company, Croton, Ohio
The State Savings Bank Company, Maumee, Ohio
,
The Citizens Banking Company, Sandusky, Ohio
,
The Vandalia State Bank, Vandalia, Ohio
,

····················

,

IN 1939
.
.
.
.
.
.
.
.
.
.
.
.

3-9-39
6-6-39
7-18-39
8-7-39
8-8-39
8-10-39
8-15-39
8-22-39
8-26-39
9-2-39
9-9-39
9-13-39
9-27-39
10-5-39
10-3-39
10-11-39
10-14-39
10-23-39
10-27-39
11-1-39
11-17-39
11-17-39
11-17-39

SERVICES OF FEDERAL RESERVE BANK OF CLEVELAND AVAILABLE TO
FOURTH DISTRICT MEMBER BANKS
Facilities are provided for the discount of eligible paper owned by member banks having maturities not in excess of
90 days from date of discount; for advances not exceeding 90 days on member bank collateral notes secured by eligible
paper or by direct obligations of the United States. Member banks may also obtain advances on their time or demand
collateral notes having maturities of not more than four months which are secured to the satisfaction of the Federal
reserve bank.
All forms of United States currency and coin are received for credit, redemption, exchange, or replacement. This
bank supplies all current denominations of currency and coin, subject to the rules of the bank and regulations of the
Treasury Department.
A nation-wide system for collecting cash items payable at par has been established by Federal reserve banks by
means of which the proceeds of such items are available as reserve at the earliest possible time.
Facilities are provided by this bank for the prompt collection of maturing notes, drafts, bills, and other noncash
items payable within the continental United States.
Facilities are provided for the transfer, by telegraph or mail, of collected funds on deposit at Federal reserve banks
to the credit of any member or nonmember clearing bank.
Member banks may issue special forms of drafts on their reserve accounts at this bank which will be received for
immediate credit at par by any other Federal reserve bank or branch.
This bank provides safekeeping for all investment securities owned by member banks, which service includes the
cutting and presentation of maturing coupons, the presentation of maturing or called principal amounts of unpledged
securities, and exchange of interim receipts or other obligations in temporary form for securities in permanent form.
This service includes the acceptance of securities pledged by member banks to officials of States or political divisions
thereof, to trust departments, or to Federal departments, agencies or officials.
At the request of member banks, orders will be placed for the purchase or sale of securities in bearer form (except
stocks) that have been issued and are outstanding. No charge will be made by this bank for its services in the purchase or sale of obli~ations of the United States or its agencies.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102