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FEDERAL RESERVE BANK OF CLEVELAND Twenty-ninth Annual Statement Cleveland 1, Ohio, January 7, 1944 To the Stockholders of Federal Reserve Bank of Cleveland: For your information there are submitted herein comparative statements of condition for December 31, 1943, and December 31,1942, and of earnings and expenses for the years 1943 and 1942. There are also included statements of the distribution of net earnings for the two years. The past year has added to the many problems of banks, and we are proud of the way in which they have accepted these added responsibilities. The magnificent effort made by officers and employees of banks in the various War Loan drives, the participation of banks in the tax withholding program, and the important part they have played in ration banking, make a glorious chapter in American banking history. This bank is especially appreciative of the fine cooperation which the banks of this district have shown. President COMPARATIVE STATEMENT OF CONDITION ASSETS Dec. 31, 1943 Dec. 31, 1942 Cash reserves held by this bank against deposits and note circulation: Gold certificates (lodged with the Treasurer of the United States) deposited for account of the Federal Reserve Agent as collateral s against Federal Reserve notes issued to this bank .. 955,000,000.00 $1,180,000,000.00 31,000,000.00 1,140,222.67 440,309,130.82 534,832,513.70 . 24,477,196.53 43,579,838.05 . 1,450,786,327.35 1,759,552,574.42 265,000.00 -0390,342.05 1,180,153,000.00 190,000.00 270,971.45 819,846.43 509,453,500.00 1,180,808,342.05 510,734,317.88 5,060,500.00 249,226,826.39 4,213,794.51 8,308,138.83 2,869,000.00 200,909,306.01 4,326,270.42 8,482,708.99 266,809,259.73 216,587,285.42 $2,898,403,929.13 $2,486,874,177.72 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: Federal Reserve notes of other banks. 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, 1943 Dec. 31, 1942 Federal Reserve notes in circulation: Federal Reserve notes in actual circulation, payable on demand. These notes are secured in full by gold certificates, discounted $1,495,779,825.00 $1,133,506,500.00 1,003,594,638.08 918,239,742.65 . 75,109,379.07 132,278,945.07 . 128,877,875.51 141,992,071.45 . 1,207,581,892.66 1,192,510,759.17 154,351,520.28 125,478,131.99 521,449.31 162,755.93 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 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 154,872,969.59 125,640,887.92 15,572,550.00 14,878,350.00 16,025,696.51 14,766,685.26 1,007,126.09 1,007,126.09 7,563,869.28 . 4,563,869.28 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 . amount paid by the Secretary of the Treas- ury to further the making of working capital loans ... Reserves for contingencies Total Liabilities . . Commitments to make industrial advances. . . . . . . . . . . . . . . . . . . . . . $2,898,403,929.13 $2,486,874,177.72 $ $ 100,000.00 387,086.87 COMPARISON OF EARNINGS AND EXPENSES For the years 1943 and 1942 1943 Current 1942 Earnings: Discounted bills s . 4,101.17 $ 3,073.92 Industrial advances . 28,383.78 Commitments to make industrial advances . 2,273.92 6,279.32 6,643,854.33 United States Government securities . 19,800.12 . 71,970.59 4,872,023.65 73,854.49 . 6,750,583.79 4,975,031.50 Expenses (including normal depreciation on bank . 7,143,045.63 5,036,390.38 Less reimbursements for certain Fiscal Agency and other expenses 3,617,994.70 1,976,744.91 3,525,050.93 3,059,645.47 All other Total current earnings Total Operating premises) , Net Operating Expenses . Assessments for expenses of Board of Governors . 223,201.32 160,273.46 Cost of Federal Reserve currency . 444,145.03 387,044.64 . 4,192,397.28 3,606,963.57 . 2,558,186.51 1,368,067.93 3,537,441.55 333,825.68 Total current expenses Current Net Earnings Additions to Current Net Earnings: Profits on sales of United States Government securities ... All other 1,013.59 . 3,545.64 . 3,538,455.14 337,371.32 Retirement System (interest base and increased benefits adjustments) 803,689.34 381,490.00 All other 111,177.95 7,481.55 914,867.29 388,971.55 Total additions Deductions from Current Net Earnings: . Total deductions . Net deductions : .. Net additions .. , 51,600.23 2,623,587.85 , . . . . . . . . . . .. . . . .. . . . . . . . . . . . . . . . $ Net Earnings 5,181,774.36 ======== DISTRIBUTION Paid United States Treasurer (Section 13b) Dividends paid $ 1,316,467.70 $ 6,847.76 OF NET EARNINGS . $ 599.31 922,163.80 . Reserves for Contingencies .. -0- 3,000,000.00 Surplus (Section 7) 888,549.72 1,259,011.25 Total. . . $ 5,181,774.36 421,070.22 . $ 1,316,467.70 FEDERAL RESERVE BANK OF CLEVELAND DIRECTORS AND OFFICERS-1944 DIRECTORS G. C. BRAINARD, Chairman R. E. KLAGES, Deputy Chairman 1 Term Expires CLASS A F. F. BROOKS, President, First National Bank at Pittsburgh, Pittsburgh, Pa.. B. R. CONNER, President, The First National Bank of Ada, Ada, Ohio................... H. B. McDOWELL, President, The McDowell National Bank of Sharon, Sharon,Pa.. . . . . .. .. . . . .1944 1945 1946 CLASS B G. D. CRABBS, Chairman of the Board, The Philip Carey Manufacturing Co., Cincinnati, Ohio.. . T. E. MILLSOP, President, The Weirton Steel Co., Weirton, W. Va : R. P. WRIGHT, Secretary-Treasurer; The Reed Manufacturing Co., Erie, Pa . 1944 1945 1946 CLASS C A. Z. BAKER, President and General Manager, The Cleveland Union Stock Yards Co., Cleveland, Ohio R. E. KLAGES, President, The Columbus Auto Parts Co., Columbus, Ohio G. C. BRAINARD, President, The General Fireproofing Co., Youngstown, Ohio 1944 1945 1946 OFFICERS M. J. FLEMING, R. B. HAYS... W. H. FLETCHER.. J. W. KOSSIN. . . . . A. H. LANING B. J. LAZAR... K. H. MacKENZIE W. F. TAYLOR.. E. A. CARTER .. , President First Vice President . .. :- Vice President . Vice President Vice President and Cashier . Vice President Vice President . W. D. FULTON. . . . Assistant Vice President H. E. J. SMITH Assistant Vice President C. J. BOLTHOUSE .. ' .Assistant Cashier W. L. FINDEISEN. . .. Assistant Cashier C. HARRELL. . . .Assistant Cashier M. MORRISON .. R. R. CLOUSE. F. V. GRAYSON .. Vice President Assistant Vice President . . Assistant Cashier . . Secretary . .. Auditor MEMBER, FEDERAL ADVISORY COUNCIL B. G. HUNTINGTON, President, The Huntington National Bank of Columbus, Columbus, Ohio COUNSEL SQUIRE, INDUSTRIAL W. W. WITHINGTON, Vice' President The American Fork & Hoe Company, Cleveland, Ohio D. C. SWANDER, President The Columbian Vise and Mfg. Company, Cleveland, Ohio SANDERS & DEMPSEY Cleveland, Ohio ADVISORY COMMITTEE H. R. NEFF, President The 'George S. Rider Company, Cleveland, Ohio H. P. LADDS, President The National Screw and Manufacturing Cleveland, Ohio C. F. HOOD, President The American Steel and Wire Company of New Jersey, Cleveland, Ohio Company, FEDERAL RESERVE BANK OF CLEVELAND DIRECTORS AND OFFICERS-1944 (Continued) CINCINNATI BRANCH OF FEDERAL RESERVE BANK OF CLEVELAND Term Expires DIRECTORS BUCKNER WOODFORD, Vice President and Cashier, Bourbon-Agricultural Bank & Trust Co., Paris, Ky 1945 FREDERICK V. GEIER, President, The Cincinnati Milling Machine Company, Cincinnati, Ohio. . . 1945 . .... 1944 J. G. GUTTING, President, The Second National Bank of Cincinnati, Cincinnati, Ohio .. FRANCIS H. BIRD (Chairman), Professor of Commerce, College of Engineering and Commerce, University of Cincinnati, Cincinnati, Ohio. . . . . .1945 FRANK A. BROWN, (Farmer), R. F. D. No. I, Chillicothe, Ohio.. . .1944 OFFICERS B. J. LAZAR. . . H. N. OTT. . . . ..... . .. .. R. G. JOHNSON P. J. GEERS SALMON BROWN PITTSBURGH Vice President . ..... Cashier Assistant Cashier Assistant Cashier Assistant Cashier BRANCH OF FEDERAL RESERVE BANK OF CLEVELAND DIRECTORS CLARANCE STANLEY, President, The Union Trust Company of Pittsburgh, Pittsburgh, Pa ARCHIE J. McFARLAND, President, Wheeling Steel Corporation, Wheeling, W. Va . E. B. HARSHAW, Vice President and Cashier, The Grove City National Bank, Grove City, Pa ..... ROBERT E. DOHERTY, (Chairman), President, Carnegie Institute of Technology, Pittsburgh, Pa .. W. C. ARTHUR, President, Talon, Inc., Meadville, Pa . . 1945 . .. 1945 1944 . .1945 . .. 1944 OFFICERS J. W. KOSSIN. A. G. FOSTER .. J. A. SCHMIDT ... R. J. STEINBRINK.. W. H. NOLTE .. . . . Vice President . , . Cashier . . Assistant Cashier Assistant Cashier Assistant Cashier NUMBER OF BANKS IN OPERATION IN FOURTH DISTRICT, DECEMBER 31,1943 Kentucky .... Ohio-Cincinnati territory ... Ohio-Cleveland State 7 23 territory. Pennsylvania .. West Virginia ... . , 150 . 30 4 214 National 51 91 150 193 Total 58 114 8 300 223 12 493 707 MEMBER BANKS ADMITTED DURING 1943 The Andover Bank, Andover, Ohio The Chardon Savings Bank Company, Chardon, Ohio The State Bank of Defiance Company, Defiance, Ohio The Farmers State Savings Bank, Delta, Ohio The Lorain County Savings & Trust Company, Elyria, Ohio The Farmers State Bank Company, Fayette, Ohio The Loramie Banking Company, Fort Loramie, Ohio The Commercial Bank and Savings Company, Fostoria, Ohio Barclay-Westmoreland Trust Company, Greensburg, Pennsylvania Farmers and Merchants Trust Company, Greenville, Pennsylvania The Hamler State Bank, Hamler, Ohio The Holgate State Bank, Holgate, Ohio The Liberty State Savings Bank, Liberty Center, Ohio The Lindsey Banking Company, Lindsey, Ohio The Fahey Banking Company, Marion, Ohio The Farmers State Bank of McClure, Ohio, McClure, Ohio The Mogadore Savings Bank, Mogadore, Ohio "The First National Bank of Nelsonville, Nelsonville, Ohio The Hardy Banking Company, North Baltimore, Ohio The Rossford Savings Bank, Rossford, Ohio The Seville State Bank, Seville, Ohio The Miners & Merchants Bank, Smithfield, Ohio The Farmers Savings Bank Company, Stony Ridge, Ohio The Farmers State Bank of Stryker, Stryker, Ohio The Farmers Bank, Sunbury, Ohio The Peoples State Bank, Wauseon, Ohio During the calendar year 1943 twenty-six banks have been admitted to membership in the Federal Reserve System. In an, forty-four Fourth District banks have become members since the bombing of Pearl Harbor. "Ccnversion of State nonmember bank.