The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF OLEVELAND Tioenty-seceruli Annual Statement Cleveland, Ohio, January 8, 1942 To the Nonmember Banks of the Fourth Federal Reserve District: There is presented herein a comparative statement of the condition of Federal Reserve Bank of Cleveland at the close of business December 31, 1941, and December 31, 1940, together with a comparative statement of earnings and expenses for the years 1941 and 1940, and the distribution of net earnings for the past year. Seventeen State chartered banks in the Fourth Federal Reserve District joined the Federal Reserve System during the past calendar year. The number of member banks in actual operation at the end of 1941 was 673, and additional applications are pending. There is a growing appreciation that System membershiP can augment other banking facilities, and bring to your customers and to your community an improved and enlarged . banking service. Will you please bring this statement to the attention of your officers and directors. Very truly yours, .-President COMPARATIVE STATEMENT OF CONDITION ASSETS Dec. 31, 1941 Dec. 31, 1940 $ 815,000,000.00 $ 575,000,000.00 919,411.21 659,704.58 812,213,061.38 756,413,461.85 23,520,932.18 19,963,234.75 1,651,653,404.77 1,352,036,401.18 . 100,000.00 86,924.57 233,254.12 223,162,000.00 150,000.00 149,976.12 249,919.76 218,731,000.00 . 223,582,178.69 219,280,895.88 Federal Reserve notes of other banks.. . . .. . . . .. . ... . . . . .. . .. . 2,086,500.00 149,176,720.56 4,438,746.33 4,617,844.87 1,946,500.00 102,207,114.29 4,586,586.61 5,078,508.26 160,319,811.76 113,818,709.16 $2,035,555,395.22 $1,685,136,006.22 Cash reserves held by this bank against deposits and note circula tion: Gold certificates (lodged with the Treasurer of the United States) deposited for account of the Federal Reserve Agent as collateral against Federal Reserve notes issued to this bank... . . . . . . .. Redemption fund in the hands of the Treasurer of the United States for use in redeeming 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 guaranteed . Otherwise secured or unsecured 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.... . . . . . . . . . .. .. . . . . .. . .. . . . .. . Total miscellaneous assets............................... Total Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. COMPARATIVE STATEMENT OF CONDITION LIABILITIES Dec. 31, 1941 Dec. 31, 1940 $ 778,071,820.00 $ 540,940,930.00 919,517,208.89 920,969,713.29 Federal Reserve notes in circulation: Federal Reserve notes in actual circulation, payable on demand. These notes are secured in full by gold certificates, discounted paper, or United States Government securities ... , . . . . . . . . . .. Deposits: Reserve deposits maintained by member banks as legal reserves against the deposits of their customers . United States Government deposits carried at this bank for current . 72,247,422.50 16,327,705.82 . 87,141,064.96 76,842,702.43 . 1,078,905,696.35 1,014,140,121.54 . 143,847,769.41 95,813,456.97 . 173,349.05 149,312.75 . 144,021,118.46 95,962,769.72 14,640,150.00 14,198,400.00 14,345,615.04 14,322,789.59 ury to further the making of working capital loans .. . . . . .. . 1,007,126.09 1,007,126.09 Reserves for contingencies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,563,869.28 4,563,869.28 $2,035,555,395.22 $1,685,136,006.22 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% of the 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 Total Liabilities. . . .. . . . . . . . . . . . amount paid by the Secretary of the Treas- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. Commitments to make industrial advances. . . . . . . . . . . . . . . . . . . . .. $ 1,042,797.74 $ 727,057.52 COMPARISON OF EARNINGS AND EXPENSES For the years 1941 and 1940 1940 1941 Current Earnings: Discounted bills.. $ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2,364.21 $ 3,479.97 Industrial advances . 14,708.63 16,097.28 10,924.07 Commitments to make industrial advances . United States Government securities . 10,350.39 4,031,178.51 4,291,013.65 All other . 65,292.46 83,938.65 . 4,123,894.20 4,405,453.62 Total Operating Expenses (including normal depreciation on bank premises) , ., . 3,354,291.09 2,872,880.94 Less reimbursements for certain Fiscal Agency and other expenses 462,972.10 259.380.07 . 2,891,318.99 2,613,500.87 Assessments for expenses of Board of Governors . 168,820.99 158,308.02 Cost of Federal Reserve currency . 300,294.59 138,309.28 Total current expenses . 3,360,434.57 2,910,118.17 . 763,459.63 1,495,335.45 Profits on sales of United States Government securities . 132,273.24 1,163,698.76 All other . 23,650.12 186,022.77 . 155,923.36 1,349,721.53 . -0- 812,925.65 . 11,158.13 110,824.41 . 11,158.13 923,750.06 . 144,765.23 425,971.47 Total current earnings Net Operating Expenses Current Net Earnings Additions to Current Net Earnings: Total additions Deductions from Current Net Earnings: Special reserve for depreciation on bank premises All other , Total deductions Net additions Net Earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..$ ====9=08=,=2=24=.=8=6$ DISTRIBUTION Paid United States Treasurer (Section 13b) Dividends paid Reserves for contingencies 1,921,306.92 OF NET EARNINGS $ , . .. 15,457.87 $ 15,107.48 . 869,941.54 . -0- 1,063,869.28 22,825.45 -0- $ ==$==9=0=8::::,2=2=4=.8=6 1,921.306.92 Surplus (Section 7).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 842,330.16 FEDERAL RESERVE BANK OF CLEVELAND I I DIRECTORS AND OFFICERS-1942 DIRECTORS G. C. BRAINARD, Chairman R. E. KLAGES, Deputy Chairman Term Expires CLASS A B. R. CONNER, President, The First National Bank of Ada, Ada, Ohio H. B. McDOWELL, President, The McDowell National Bank of Sharon, Sharon, Pa F. F. BROOKS, President, First National Bank at Pittsburgh, Pittsburgh, Pa 1942 1943 1944 CLASS B T. E. MILLSOP, President, The Weirton Steel Co., Weirton, W. Va R. P. WRIGHT, Secretary-Treasurer, The Reed Manufacturing Co., Erie, Pa G. D. CRABBS, Chairman of the Board, The Philip Carey Manufacturing Co., Cincinnati, 1942 1943 1944 Ohio CLASS C R. E. KLAGES, President, The Columbus Auto Parts Co., Columbus, Ohio G. C. BRAINARD, President, The General Fireproofing Co., Youngstown, Ohio W. H. LLOYD, Editor, The Ohio Farmer, Cleveland, Ohio.. . 1942 1943 1944 OFFICERS M. F. J. ZURLINDEN W. H. FLETCHER G. H. WAGNER R. B. HAYS W. F. TAYLOR C. W. ARNOLD J. FLEMING, President E. A. CARTER First Vice President Vice President Vice President Vice President & Secretary Vice President & Cashier Vice President Assistant A. G. FOSTER H. E. J. Vice President Assistant Cashier SMITH Assistant Cashier C. E. HARRELL Assistant F. V. GRAYSON 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, The Thew Shovel Co. Lorain, Ohio W. WITHINGTON, Vice President The American Fork & Hoe Company, Cleveland, Ohio D. C. SWANDER, President The Columbian Vise and Mfg. Co. Cleveland, Ohio H. R. NEFF, President The Geo. S. Rider Co. Cleveland, Ohio E. C. FOLSOM, President The Ottawa River Paper Co. Toledo, Ohio FEDERAL RESERVE BANK OF CLEVELAND DIRECTORS AND OFFICERS-1942 (Continued) CINCINNATI BRANCH OF FEDERAL RESERVE BANK OF CLEVELAND DIRECTORS Term Expires F. A. BROWN (Chairman), Agriculturist, Chillicothe, Ohio " J. J. ROWE, President, The Fifth Third Union Trust Company, Cincinnati, Ohio B. J. LAZAR, Managing Director FRANCIS H. BIRD, Professor of Commerce, University of Cincinnati, Cincinnati, Ohio BUCKNER WOODFORD, Vice President and Cashier, Bourbon-Agricultural Bank & Trust Co., Paris, Ky .. 1942 1942 1942 1943 1943 OFFICERS B. H. R. P. PITTSBURGH J. LAZAR N. OTT G.JOHNSON J. GEERS Managing Director Cashier Assistant Cashier Assistant Cashier BRANCH OF FEDERAL RESERVE BANK OF CLEVELAND DIRECTORS E. B. HARSHAW, Vice President and Cashier, The Grove City National Bank, Grove City, Pa G. T. LADD (Chairman), President, The United Engineering & Foundry Co., Pittsburgh, Pa P. A. BROWN, Managing Director : ROBERT E. DOHERTY, President, Carnegie Institute of Technology, Pittsburgh, Pa CLARANCE STANLEY, President, The Union Trust Company of Pittsburgh, Pittsburgh, Pa 194.2 1942 1942 1943 1943 OFFICERS P. A. BROWN J. W. KOSSIN F. E. COBUN C. J. BOLTHOUSE MEMBER BANKS IN OPERATION Managing Director Cashier Assistant Cashier Assistant Cashier IN FOURTH DISTRICT, DECEMBER State Kentucky Ohio-Cincinnati Ohio-Cleveland Pennsylvania West Virginia territory territory National 52 31, 1941 Total . 7 . 19 . 118 . 27 . 3 91 151 197 8 59 110 269 224 11 174 499 673 FOURTH DISTRICT STATE BANKS ADMITTED TO MEMBERSHIP IN 1941 Date Admitted Name and Location of Bank Total Resources, 9-24-41 1- 8-41 The Bolivar State Bank Company, Bolivar, Ohio 2-20-41 The Killbuck Savings Bank Company, Killbuck, Ohio. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 400,000 484,000 376,000 3-12-41 The Commercial Bank Company, Green Springs, Ohio... .. . . . . . . .. . . . . . . . . . . .. .. . 3-19-41 The Polk State Bank, Polk, Ohio....... . . . . . . . . .. . . .. . . .. . . .. . . . . .. .. .. .. .. .. . . 282,000 4- 1-41. The Ashville Banking Company, Ashville, Ohio.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626,000 4- 8-41 The Citizens Savings Bank Company, Pemberville, Ohio 5-24-41 The Niles Bank Company, Niles, Ohio " 866,000 2,498,000 6- 4-41 The New Waterford Savings and Banking Company, New Waterford, Ohio........ 6-11-41 The Exchange Bank of Luckey, Luckey, Ohio........ .. 753,000 . . . . . . . . .. . . .. . . .. . . . . . . . . .. 749,000 6-12-41 The Genoa Banking Company, Genoa, Ohio... . . . . .. . . . . .. . . . . .. . . . . .. . . .. . . .. .. 7-16-41 The Farmers and Citizens Bank and Savings Company, Bucyrus, Ohio 907,000 1,749,000 9- 6-41 The Bank of Elmore Company, Elmore, Ohio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 997,000 9-17-41 The Liberty Bank, Ada, Ohio..... 663,000 . . . . . . . . . . . .. . . .. .. .. . . . . . . . . . . .. . . . . . . .. . . .. 10-16-41 The St. Henry Bank, Saint Henry, Ohio......... .. . . . . .. . . . . . . . . .. .. . . . . . . . . . . . . 597,000· 11-28-41 Alger Savings Bank, Alger, Ohio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304,000· 11-28-41 The Peoples Banking Company, McComb, Ohio........ 12- 8-41 The Farmers & Merchants Bank of Logan, Logan, Ohio . . .. . . . . . . .. .. .. . . .. . . .. .. 652,000· 2,212,000· ·As of the date of examination for membership. The trend of State bank membership in the Fourth Federal Reserve District continues upward. During the calendar year 1941, seventeen State chartered institutions became members of the System. The resources of State banks in the Fourth District constitute more than fifty per cent of all banking resources in that territory, and State bank members have aggregate resources more than double those of nonmember State banks. Through membership in the Federal Reserve System, the services rendered by correspondent banks may be augmented to a point which will permit banks to offer to their customers every possible banking service.