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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.

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