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1953
FEDERAL
RESERVE
of
BANK
CLEVELAND
FOURTH
FEDERAL
RESERVE
DISTRICT
for tLe year
1953
•
January
20, 1954
District:
To the Banks in the Fourth
Federal
ThoUgh btlSiness and
banks each day and enj oy the
services
offered,
few
nation-wide
System pI'
Federal Reserve Banks
dedicated
to " ... the
and the accommodation
ture".
They have other duties such
and coin, collecting
checkS, and s
ing as
~e 10••r.m.nt of the united stat. ,
all
bUsiness and the publiC thrOug;h the
We are pleased to send
Reserve Bank of Cleveland,
acter of bUsiness and agriculture
in
Reserve Distr
Ell1d the adequacY and
to meet the requirements
for loans
ThiS haS been a year of
' loW
unemplOynlent and prof i table
cessation
of armed hoStil
a
economic elements cor,tributing
a lcng
responsibili
tieS of bonMrs to conduct their
sound but progressive
manner have been accentuated
by
in a
theSe developments.
Thc officers
and staff of Fedoral Reserve Bank o.
Cleveland and branoheS at Cincinnati and PittsbUrgh
apprev d
ciate the oooperation and advice we have recGi •
from
baak
and representatives
of business,
commerce and agriculture
It haS aided us immeasurers throughOut our district.
ablY in carrying out our duties and enabled us to improve
our operations.
8~
#~
president
•
Chairman
T
aLle of l:onlenls
FINANCIAL
AND
BUSINESS
DEVELOPMENTS
IN
1953
Credit Policy and the Money Market
.
The Year in Fourth District Banking
8
.
Industry in 1953
.
Agriculture
4
10
.
13
OPERATIONS
Highlights of '53 Volume of Operations ...
14
Location of Fourth District Member Banks
The New Leased-Wire System
.
18
.
20
Helping the Treasury Float a Bond Issue.
\Vhat Happens to Worn-out Currency?
Some Activities-On
DIRECTORS
an'd Executive Appointments
AND
OFFICERS
.
.
22
24
26
.
A President is Called to Washington
...
.
and Off the Job. . . . . . .
Financial Statements
16
.
are Made at this Bank.
28
29
30
IN
A YEAR characterized by uncertainty
in the
nation's money market, the point of greatest
historical interest was the abrupt turn in financial
sentiment which occurred early in June.
At the time when the wind shifted, the shrinkage in the market value of investment portfolios
had reached a point where the flow of capital into
productive enterprise might soon be noticeably
impeded. The Victory Loan 272S, to cite an
example, had receded into the low 90s, and all
other gilt-edge securities were being quoted at
comparable discounts.
It is true that only a minute portion of the
public debt had changed ownership at these low
levels, and that most of the marketable debt had
stayed in the same hands during the preceding
cascade of prices. Nevertheless, the shrinkage
of values had begun to affect, so to speak, every
phase of investment activity and psychology.
The severe markdown in bond prices-the sharp
rise in the cost of money-meant
that all kinds
of fixed-income-producing property had suffered
a sharp decline in capitalized value. More than
once in the past, such an outwardly innocuous
but substantial markdown of basic investment
(as distinguished frum speculative) values had
preceded a reduction in capital expenditures and
a slowdown in economic act~vity.
The question naturally arises as to how this
situation had come about, and how or why it
was alleviated.
ago wa~ being financed to a disproportionate
degree by a steady stream of credit expansion
which could not be sustained indefinitely. Personal and corporate indebtedness was increasing
much more rapidly than mere population growth
required, and was reaching great and unfamiliar
magnitudes. Participating in the scramble for
funds were individuals seeking to finance home
purchases and instalment buying, business enterprises trying to expand physical facilities and to
augment working capital, as well as state and
local authorities intent upon an unprecedented
program of public construction.
The flow of genuine savings, however substantial, was inadequate to meet the almost insatiable demand for new capital. In order to
fill the savings "gap", member banks in the
country as a whole had become indebted to their
respective Federal Reserve banks to the amount
of nearly $1,500,000,000 (the largest volume of
such borrowing since 1921) which in turn was
used to support a much larger volume of new
loans and in vestments.
The extent to which credit had been inflated
was beginning to cause considerable uneasiness.
It would hardly have contributed to long-term
economic stability if at that juncture the Federal
Reserve System had pursued a policy of extending central bank credit freely enough to permit
every conceivable demand to be met. The industrial establishment of the nation was already
bursting at the seams. The situation strongly
suggested continued application of some restraint,
perhaps some intensification of restraint, lest borrowing get out of hand, with adverse consequences
to long-run stability, employment, and prosperity.
Rise in Borrowing
During the latter months of 1952, economic
activity had gradually reached what may be described as an overblown phase; as the new year
dawned, trade and industry were booming along
at an extraordinary pace. In many instances,
capacity was being strained to meet demand.
Theoretically, full production and full employment should be no menace to stability. But
business booms are usually accompanied by an
undue and untenable rate of borrowing. This
one was no exception.
The almost feverish rate of activity of a year
Steps Toward Caution
One of the first steps to be taken in the new
year 1953, as a means of making further credit
expansion less attractive, was the raising of the
reserve banks' discount rate from Hi% to 2% at
approximately mid-January. The higher rate was
more nearly consistent with general market conditions and it also put the market on notice that
[ 4]
stantial volume of short-term government securities, the System succeeded in absorbing an equivalent quantity of member bank reserves which
otherwise could have been used as a basis for
further credit inflation.
Meanwhile there was no diminution in the
the rate of increase in private indebtedness was
becoming a matter of increasing concern.
Concurrently the System also undertook to
neutralize the inflationary potential of the return
flow of currency which customarily occurs in
January and February. By disposing of a sub-
AN
EVENTFUL
YEAR IN THE MONEY
MARKET
-1953Millions
+500 r-------------r-------------y------------,---------------,no
2nd Q.
1st Q.
3rd Q.
Price
4th Q.
108
+400
+300
+200
+100
,/
o!
CHANGES IN
SYSTEM HOLDINGS
OF U. S. GOY·T. SECURITIES'
(+- SCALE)
\.
-100
98
-200
96
-300
94
-400
92
-500
90
-600
88
-700
"Exclusive of Special
Certificctes,
3rd Q.
2nd Q.
lstQ.
and of $500,000,000
redeemed
on November
4th Q.
9 by use of free gold.
Highlights
thus released were used: (1) to reduce
member bank indebtedness to the reserve
banks, and (2) to meet outflow of currency.
F. On June 24, it was announced that legal
reserve requirements
would be reduced
by $lYs billion in the first part of July.
G. The protracted Korean talks culminated in a
truce agreement on July 26.
H. From about mid-August to the end of 1953,
System holdings of governments
were
enlarged to accommodate
the normal
seasonal expansion of: (1) bank loans,
and (2) currency in circulation.
I. By December 10, the Victory 2Y2s had recovered all of the first-half-year decline
in prices. Otber prime fixed-income securities had also risen appreciably
from
the May-June lows.
A. Discount Rate (N.Y.) was increased to 2%
(from 1%%) on January 16.
B. During first eight weeks of 1953, roughly
$1 billion of currency returned from circulation; the reserves th us 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 3 ~s were placed on sale on
April 13.
D. The Victory 2Y2s dipped below 90 on June 1;
other issues also established
long-time
lows on or near that date.
E. Beginning with the first of May and extending over a ten-week period, System holdings of governments were increased by
nearly $1.2 billion; most of the reserves
[ 5]
0
During late April and continuing through all
of May, interest rates rose rapidly to the highest
point in ten or twenty years, or to put it another
way, bond prices weakened to the lowest level in
a decade or two. Short-term rates also were
steadily stiffening, and, for some weeks in late
spring, the Treasury had to pay around 2U-2%%
for 91-day money. The reaction was much
sharper than had been anticipated, and than was
warranted by the reserve position of member
banks.
Meanwhile, in the first week of May, without
abandoning the policy of maintaining steady pressure against excessive credit expansion in the
environment of a business boom, the System had
begun to buy short-term Treasury obligations in
the open market, in order to prevent further
attrition of member bank reserves through the
normal springtime outflow of currency, and to
enable member banks to reduce their indebtedness
to the reserve banks. The acquisition of nearly
$1,200,000,000 of short-term government securities (over a ten-week period beginning April 29)
was roughly enough to neutralize the outflow of
currency, and to allow member banks to reduce
their indebtedness at the Federal Reserve banks
to very low levels. By June 1, sentiment in the
market changed, and bond prices started a rise
which in six weeks recovered most of the AprilMay decline.
accelerated rate of business activrty ; in fact,
employment and the physical output of goods
and services established a newall-time
high
during the first half of the year.
Treasury Developments
The year was not very old, however, when the
demand for credit was intensified by an untimely
turn in Federal finances. Income-tax receipts
during late March and in subsequent weeks fell
appreciably short of earlier calculations. Until
then it had been assumed that the acceleration
of corporate income-tax collections under the
Mills plan would make it unnecessary for the
Federal Government to seek any new funds before
midyear. But now it became obvious that the
Treasury would have to borrow additional funds
in competition with all other borrowers, and
several months ahead of original expectations.
In the existing state of international affairs,
the Treasury could hardly be denied priority.
But how could the Federal Reserve System
smooth the way for Treasury financing without
giving both direct and indirect encouragement
to all other kinds of borrowing? This dilemma
evoked recollections of 1927-8-9 when it was
found virtually impossible to prevent the gravitation of funds into the speculative markets.
Suffice it to say that monetary policy continued to convey an attitude of "neutrality" in
that, despite the Treasury's need for funds and
the strong private demand for capital, the System
refrained from engaging in expansive open market
operations. In April the Treasury undertook to
raise $1,000,000,000 of new money by offering
the investment market a 30-year 3U% bond.
Simultaneously it announced the intention of
seeking another $1,000,000,000, over a period of
two or three months, by the sale of additional
91-dayobligations. The new pre-emptions placed
a further strain on lending institutions, and
intensified the competitive struggle among residual borrowers.
Reserve Requirements
Late in June the System announced that, effective early in July, member bank reserve requirements would be lowered by $1,150,000,000, which
would automatically increase the potential lending (or investing) capacity of the banking structure by around $6,000,000,000. This was the
monumental event of 1953 in the money market,
for it released more potential credit at one stroke
than was created by any six consecutive green
bars in the accompanying chart. Yet this major
credit-easing step actually seemed to provide very
little further impetus to bond prices for some
weeks, which suggests that no further ease in
money rates was anticipated at a time when
business was still so active and the demand for
funds so great.
The resumption of open market purchases in
September, even though on a comparatively small
scale, revealed the intention of the System to
provide funds adequate to meet normal fall re-
Strain and Relief
All lending institutions began to strive for
greater liquidity, for fear of being unable to meet
even the normal and routine demand which
might be encountered. The strain was accentuated by the efforts of some borrowers to anticipate
their needs, before the cost of borrowing should
rise still higher.
[ 6]
BUSINESS LOANS OUTSTANDING
quirements for credit, and indicated that a decline
in production and employment would not be
exposed to an unnecessarily restrictive credit
policy. Although the cost-of-living index was
still creeping upward-at an almost imperceptible
rate-the
contemporary scene in late summer
suggested that the danger of further inflation had
been succeeded by the possibility of some retrenchment in business activity. The actual signing of
the Korean Truce Agreement on July 26 occurred
at a time when some hesitation in business was
becoming visible in widely scattered spots. (There
is no tangible evidence that the cessation of
hostilities was a prime factor. The abnormal
pace of the first half of the year probably was
destined to subside sooner or later, short of
broad-scale war.) By virtue of this second phase
of open market purchases, enough reserves were
made available to member banks so that bank
credit might expand by normal proportions during
the crop-moving and fall-buying season, over and
above the customary outflow of currency and
other restrictive factors such as gold exports.
banks,
United States)
of Dollars
5
~
-:
953 •••••._
'<,
o-~
~
.
Billions
of Dollars
•
0
V
-
15
M
M
t40TE: Figures ore of the Wednesday nearest end of the month.
The volume of purchases made in the AugustDecember interval was roughly enough to offset
the attrition of reserves stemming from the flow
of money into circulation.
(Some additional
temporary accommodation was accorded to the
money market during the final two weeks of
December, not shown in the chart, in order to
minimize the day-to-day drain of large corporateincome-tax payments as well as for customary
year-end needs.)
Meanwhile, however, business activity had begun to recede slightly, borrowing from commercial
banks had failed to come up to expectations, and
member banks found themselves in a position of
growing ease. The abatement of pressure is reflected by the fact that by December the price of
Victory 2Yzs had recovered all of the loss (and
more) which had occurred in the first half of
the year.
the first four months of the year was entirely
consistent with the Federal Reserve System's
policy of restraint in the face of a business boom.
The further drop in prices during May, however,
occurred at a time when the System was taking
action to relieve the pressure on the money
market by enabling member banks to reduce their
indebtedness at the reserve banks. The System's
action was also in keeping with its avowed objective of fostering a monetary climate which is
conducive to a high level of employment, stability
in the general price level, and a gradually rising
standard of living.
That underlying objective was unchanged
throughout 1953. It was largely the failure of
the investment market to recognize the fundamentals of that doctrine that produced the extremity in mOJ,leyrates near midyear. The events
of 1953 emphasized anew the importance of a
clearly enunciated monetary policy, as well as a
clear understanding by the money market of the
longer-range implications of such a policy.
of the Swings
In review, it appears that the decline in bond
prices (the rise in money rates) during at least
[ 7]
30
25
20
I
r
Abatement of Pressures
Meaning
(Weekly reporting
Billions
The year in fourth
district banking
T
Most of the proportionately large gains were
recorded in the smaller centers in the District.
During the last quarter of the year, debit activity
failed to show the usual seasonal increase. Deposit
turnover was slightly higher throughout 1953
than during 1952.
of the money market during
1953, and attendant measures taken by the
Federal Reserve System in the interest of financial stability (as described in the preceding pages),
produced an impact upon the operations of banks
in this District, as elsewhere in the nation.
Anxieties and uncertainties, however, did not prevent the attainment of favorable scores for the
year, as measured by various banking indicators.
Demand deposits at Fourth District banks
held above those of 1952 during most of the
year, as may be seen from an accompanying chart.
During the final quarter, however, the margin
over year ago was erased. Time deposits continued to expand throughout most of the year,
reaching newall-time highs almost each week.
Total debits to demand deposits, though never
reaching the all-time highs of December 1952,
were generally above the comparable 1952months.
HE FLUCTUATIONS
DEMAND
DEPOSITS
(Fourth Distrid weekly reporting
4.2 r------;;-W;:-:ed7""ne:-sd7""a-y
Loans
banks)
n;:-,g-ur-es,-w-ee-:-k:-ly,--;-1~9
S::-::3-a-nd:-:1S:-:2:--------,
79
4.2
3.6
3.6
3.4
3.4
IstO.
NOTE;
Does not include
2nd
government
o.
or interbank
3rd
o.
deposits,
4th
o.
or items in collection.
[ 8]
Loans to business concerns reflected both the
strong and the weak aspects of 1953 banking
operations. Such loans made by Fourth District
banks reached a peak for the year in May, but
subsequently showed a persistent decline. This
was in contrast to the usual expectation that
business borrowing would increase during the
latter half of the year. As the accompanying chart
shows, 1949 had been the last previous year in
which a decline in outstanding business loans
occurred during the second half of the year.
(While loans in this District were showing a net
decline, totals for the United States as a whole
registered a less-than-seasonal increase during the
second half.)
Much of the second-half decline in business
loans in this District is ascribable to the reduced
needs for borrowing on the part of the metalproducts manufacturing group. This group has
been paying off debt which was incurred in the
early days of the post-Korean defense boom.
Need for working capital has been met in considerable part from funds supplied internally from
accelerated depreciation allowances, and from
earnings retained from a high level of profits.
However, a recent slackening in the volume of
orders, combined with large inventories, may also
help to explain the decline in the needs of the
metals-industry group for short-term funds from
banks.
Loans to business groups other than metalsproducts manufacturers also tended to register
a decline in outstandings, or less-than-seasonal
expansion, during the latter part of the year.
Loans to sales finance companies, for example,
posted an outright decline. The usual seasonal
increase in borrowing for working capital and
inventory purposes failed to take place among
INVESTMENTS
(Fourth district weekly reporting
Millions
of Dollors
such groups as food, liquor and tobacco manufacturers, commodity dealers, and retail and
wholesale trade.
Heal-estate loans and consumer loans, by contrast with business loans, continued to climb
throughout the year 1953, although the pace of
expansion in outstanding consumer loans slackened considerably during the latter part of the
year. Outstanding consumer loans made directly
by banks to individuals for purchases of autos and
durable goods declined slightly in the closing
months of the year, while purchases of instalment
paper from dealers continued at relatively high
levels.
Investments
banks)
Millions
of Dollars
4,000
4,000
TREASURY BONDS
I
TREASURY BILLS,
CERTIFICATES, AND .NOTES
1,000
Total investments held by Fourth District
banks tended to decline during the first half of
the year, as banks sought to maintain their
,
l
,..,--,
"
,....•.r-r-: \.,--
2,000
•••
r-",~\ " \.
_,'
J""
' ••
'"
r \.".,~:
r-,
J
, ••••••
~-••-•••
-.__
._••••••••
.~::: •• __._.~ ••
--..........
r '"
OTHER SECURmES
1949
BUSINESS,
REAL ESTATE AND CONSUMER
(Fourth district reporting
Millions of Dollors
1951
1952
1953
banks)
2,000
1,500
'""""'7
1,000
I
"'--v
500
REA
1949
V
'""""
1,000
,_
...",.--::;:. .......-.--...•-..._-. ..._ .... .......-.
ESTATE LOA
S-..
1950
NOTE: Figures ore of the Wednesday
1,500
~
J
._-_ •..•........•.__ . •....•................•...
o
1950
LOANS
2,000
,. .•.
~
500
CONSUMER LOANS
AND ALLI OTHER
1951
nearest
1952
1953
end of the month.
[ 9]
1,000
reserve positions while the relative supply of
credit was tightening. After June, however, bank
portfolios of short-term Treasury securities expanded rapidly to the highest levels of the postwar
period. (See chart.) Holdings of Treasury bonds,
which had declined throughout most of the year,
showed a pickup in the final quarter-a
development associated in part with banks' desires to
maintain earnings in the face of a slackening
demand for business loans.
Substantial participation by Fourth District
banks in the financing of public projects of state
and local governments took place in 1953. During
the second half, banks in the smaller centers
reported large increases in holdings of this type
of security.
slowing effects of the 1952 steel strike, thus reflecting a partial transfer of business from one calendar
year to the next. Nonetheless, the year-to-year
increases for the most part represented new
ground gained.
Equally important as the year's total, however,
is the fact that relatively greater strength appeared during the first half of the year, while in
the second half the direction of movement was
generally downward. At the close of 1953 it was
apparent that some sort of readjustment was in
process. Business opinions differed widely as to
whether the magnitude of change would be kept
within limits even narrower than those of the
very mild 1949 readjustment, or whether a more
serious recession was in prospect.
~THIN
THE Fourth Federal Reserve District
is produced more than two-fifths of the nation's
steel, nearly two-fifths of the nation's rubber
tires, about one-fifth of the nation's machinery
and fabricated metal products, and somewhat
more than one-tenth of the nation's transportation equipment.
The year 1953, taken in its entirety, was one
of great activity and general prosperity for industries such as these, both on a nationwide scale
and in this District. New production records for
the year were scored in many instances. It is
true that the gains from the previous year to
some extent represented a catching up from the
FIFTEEN
YEARS
Steel
of STEEL PRODUCTION
Millions
of Net Tons
Millions
of Net Tons
Ingots
and
steel
for
castings,
U. S. total
125
125
CAPACITY
100
75
75
50
50
25
1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953
[101
The nation's steel furnaces during 1953 poured
a record tonnage of steel ingots and steel for
casting, amounting to about 112 million tons.
Such an outpouring topped that of strike-torn
1952 by 200/0, and beat the 1951 record of 105.1
million tons by nearly 70/0.
The transition to a buyer's market in steel was
accomplished rather smoothly during the year,
and without the sharp break in production rates
that has characterized similar periods in other
years. From a first-quarter rate of 100% of
capacity, the industry drifted downward to 99%
in the second quarter, 93% in the third period,
and to an estimated 88% in the final quarter.
During December, the percentage fell to about
80% of capacity, due largely to a very sharp drop
in the final two weeks of the year.
As buyers gained the upper hand in the second
half of the year, expensive conversion deals were
abandoned where possible, and premium-price
producers brought their charges into line with
competitors. In addition, major steel companies
announced that freight absorption would be practiced on selected items to meet particular competitive situations. Buyers began to restrict purchases to mills located most favorably with regard
to freight charges, and also began to insist on
close observance of contract quality specifications.
U. S. TIRE PRODUCTION
Millions
Millions
of Units
of Units
120
120
100
100
TRUCK AND BUS
CASINGS
80
60
80
60
PASSENGER
CAR CASINGS
~
40
20
40
20
seller's market. The switch from a seller's to a
buyer's market was heralded early in the year by
rapidly mounting new-car inventories. Part of
the accumulation took the form of replenishing
stocks which had been depleted during last year's
steel strike. Part, however, was involuntary,
leaving a large number of new cars on hand as
the 1953-model year drew to a close. Although
model changeovers curtailed production during
the final months of 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.
Despite the added sales 'effort needed to move
cars in the closing months, 1953 proved a very
satisfactory year by all past standards. In terms
of both production and sales, it ranks second only
to 1950. By year-end, about 6.1 million passenger
cars had rolled off the assembly lines as compared
with 1950's 6.7 million units. Sales (registrations)
for the year totaled about 5.6 million cars as
against 6.3 million in 1950.
Rubber Tires
Total tireproduction in 1953 established a new
record, but sales did notquite measure up to the
1950 boom total of almost roo million units. The
big expansion iri.'~lit6inobile.assemblies was the
chief stimulant of the rubber' indus try .. For the
first ten months of the year, original equipment
sales of passenger-car casings were running 49%
ahead of the comparable 1952 period, while
replacement sales during the same period just
barely exceeded year-ago totals. Production and
shipments of truck and bus tires for the same
interval were close to their 1952 levels, but lagged
behind a series of other postwar years.
Manufacturers cut back production in late
spring after tire inventories had soared to their
highest level in 24 years. This action, together
with continued good sales, brought stocks of
passenger-car casings down to 10.5 million units
by the end of September, or some 18% below the
mid-year peak. However, a rise in production in
excess of that required to meet a spurt in auto
output halted the inventory adjustment during
October and brought stocks to 10.9 million casings, almost 33% above the year-ago level.
Some reduction in employment in Ohio rubber
factories occurred during the final quarter of the
year, in contrast to the fonrth quarter of 1952
when the indnstry was gaining momentum in
The net result of such developments has been
lower steel costs to consuming industries, and a
brisk competitive fight for business.
Steel producers in the Fourth District felt such
changes in market conditions, and operations in
the District paralleled rather closely the national
rate. Production was maintained at better than
average rates, however, in the Wheeling area and
in the Cleveland-Lorain area. Operations in
Pittsburgh and Youngstown were about on a par
with the national rate, but the Ohio River area
slackened noticeably in the fall of the year.
Lake iron ore shippers-favored
by an early
start, an enlarged and faster fleet, and very good
shipping weather-broke
the 1942 annual record
of 92 million tons by early November. By the
end of the season, close to 96 million tons had
been moved from Upper Lake ports.
Autos
Automobile parts, trucks, and other forms of
transportation equipment make up an important
segment of the Fourth District's industrial pattern.
For the automobile industry throughout the
nation, 1953 marked the end of the postwar
[.11]
tories. About midyear, stocks in these lines were
receding, but apparently the readjustment was
not sufficient to prevent some further decline in
production rates toward the end of the year.
preparation for the production race slated for
early 1953.
Machinery
and Appliances
Production of machinery held to very high
levels during most of the year, with some tapering
off observable in the autumn months.
(See
accompanying chart.) New orders dropped earlier
and more rapidly than production in many lines.
Sharing in the recently reduced activity in the
machinery lines were producers of agricultural
machinery and tractors, and manufacturers of
household machinery. To a lesser extent, some
SOME HEAVY INDUSTRY SCORES
{Index 01 Physical Volume 01 Production}
(1947.49 Average=lOO)
(1947-49 Average=lOO)
200
200
501----1----+----+----+---.....,1-----150
1948
1949
1950
1951
1952
1953
downward movement was experienced by producers of construction equipment, engines and
turbines, and general industrial machinery.
Earlier in the year, at a time when most machinery lines were bolding firm, producers of
major household appliances and of radio and
television sets found it necessary to effect sharp
production cutbacks because of mounting inven-
[ 1~1
General Economic Indicators
The industries just reviewed, which are of
outstanding importance to this District, were not
exceptional in their showing of brisk activity
during 1953, coupled with signs of weakening
toward year-end. The physical volume of industrial production scored an over-all 7% gain over
the previous year, along with some observable
slackening since July. Unemployment for the
most part was at record low levels, and at no
time constituted an appreciable problem; nevertheless, it was creeping up during the latter
part of the year.
The Gross National Product, an estimated
measure of the dollar value of all goods and
services currently produced in the nation, increased by about 5% over 1952, although both
third and fourth-quarter estimates were lower
than those for the first half.
Relative price stability was an outstanding
feature of the year 1953, with the important
exception of the agricultural sector where the
downward tendency of the two previous years persisted. Wholesale prices in the aggregate showed
little change; the consumers' price index, due
mainly to rent and service components, edged up
slightly after a temporary weakening in the early
months of the year; basic commodity prices
showed no persistent trend throughout the year.
Whereas last year's Annual Report noted a
turnabout in the inventory situation in the direction of renewed accumulation of stocks, an opposite shift must be noted for 1953. The rate of
over-all inventory accumulation showed marked
signs of slackening during the third quarter of
the year, and by the final quarter a net reduction
was clearly approaching, if, indeed, it had not
already been reached. Such a development played
an important role in the recent reduction of Gross
National Product and other general measures of
activity, as well as in the affairs of the specific
industry groups already noted. Its implications
for the 1954 outlook were in the forefront of
business discussion at year-end.
which includes most of the famous bluegrass area,
accounts for nearly one-third of the nation's
growth of burley tobacco.
Here, as in the nation, 1953 fell short of being
a banner year for agriculture. Farm prices continued the downward trend which prevailed
throughout 1952 and most of 1951. Output was
maintained at a very high level, despite drought
conditions in some areas. Net farm income declined further to a point about one-fourth below
the postwar record of 1947. Total indebtedness
of farmers rose moderately. Some letup in farm
buying of industrial goods was observed.
The factor most important in sustaining the
farm economy was the continued growth in consumer income which supported a strong domestic
demand for food. Foreign demand, on the other
hand, fell sharply during 1952-53 from the unusually high points of the previous fiscal period.
FARMING
ENTERPRISE in the Fourth Federal
Reserve District, although perhaps it holds the
spotlight of attention less frequently than the
District's heavy industry, carries a very strong
weight in the nation's agriculture. Ohio, for
example, which is the one state completely within
the District, ranks among the top seven states
of the nation with respect to fifteen or more
major farm commodities, including dairy cow
numbers and the production of hogs, milk, eggs,
corn, winter wheat, and soybeans. Ohio stands
among the top dozen states in the production of
many other principal farm products such as hay,
rye, oats, sheep and lambs, and apples.
In western Pennsylvania, dairy operations are
similar in scale and quality to those of northeastern Ohio. The eastern section of Kentucky,
which also falls. within the Fourth District and
Example of Contour Farming in the Fourth District
[I3]
Consolidated Figures for Main
PHYSICAL QUANTITIES
CHECKS PROCESSED
Government
1953
1952
252,970,000
240,741,000
(number)
35,307,000
35,022,000
(number)
I (number)
{number
1,075,560,000
COIN PAID OUT
1,051,897,000
CURRENCY
RECEIVED
(pieces)
PAID OUT
(pieces)
AND ADVANCES
989,174,000
1,002,853,000
19,017,000
15,482,000
(rolls)
(rolls)
434,743,000
408,844,000
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
43,638,089,000
42,972,545,000
471,723,000
458,849,000
(pieces)
4.32,338,000
405,752,000
$92,874,691,000
17,080,353,000
(pieces)
(pieces)
DISCOUNTS
205,719,000
1952
21,208,734.,000
(pieces)
(pieces)
CURRENCY
$102,737,414,000
(number)
J
COIN RECEIVED
COIN WRAPPED
1953
(number)
217,664,000
All other
DOLLAR AMOUNTS
(pieces)
1,887
(advances)
1,444
(advances)
SAFEKEEPING:
Securities deposited and withdrawn
394,740
(pieces)
Coupons detached and collected
POSTAL MONEY ORDERS
PROCESSED
ORDINARY MAIL,
incoming and outgoing
581,056
(pieces)
554,651
(pieces)
27,667,000
28,238,000
(number)
(number)
8,128,000
7,733,000
(pieces)
REGISTERED
MAIL,
incoming and outgoing
318,304
(pieces)
208,116
(pieces)
219,020
(pieces)
(pieces)
outgoing coin and currency, ran to moderately
larger totals than the very high volume figures
of 1952. A substantial rate of gain is observed
for the dollar volume of government checks
handled, attributable in large part to a change
in the disbursing arrangements of the United
States Navy. The wrapping of coin continued
to show a marked increase in rate of activity,
due to the popularity of this service with the
commercial banks.
FURTHER
growth in the volume of operations
took place during 1953 for most departments of
the bank, as indicated by the table and bar chart
shown above. Increases over the previous year
occurred both in terms of physical quantities of
items handled and dollar amounts; in numerous
cases, although not uniformly so, the rise in
dollar volume was somewhat larger than the gain
in physical volume.
The processing of checks, and of incoming and
[ 14]
Office and two Branches
PERCENTAGE
CHANGE
FROM 1952 TO 1953
Dollar Amounts
Physical Quantities
-10
-5
0 +5 +10 +15+20
-lo
-5
0 +5 +10 +15+20
CHECKS PROCESSED
Government
All other
COIN RECEIVED
COIN PAID OUT
COIN WRAPPED
CURRENCY
RECEIVED
CURRENCY
PAID OUT
DISCOUNTS
AND ADVANCES
SAFEKEEPING:
Securities deposited and withdrawn
Coupons detached and collected
POSTAL MONEY ORDERS
PROCESSED
ORDINARY MAIL,
incoming and outgoing
REGISTERED
MAIL,
incoming and outgoing
car delivery; the latter operations are not reflected in the table and chart above.
The information depicted above is far from
complete in its representation of the important
everyday operations of the bank and its branches.
Among the significant phases omitted are the
handling of savings bonds and of other Treasury
issues by the Fiscal Agency department of the
bank. Some information on the latter, however,
is provided elsewhere in this Report.
The substantial increase in volume of discounts
and advances reflects primarily the increased use
which member banks made of the borrowing
privilege during the period of relatively tight
money during the first half of 1953.
The volume of registered mail handled is one
of the few activities which scored a reduced
volume during the year. This is mainly because
increased shipments of currency and coin to and
from member banks are now handled by armored[ 15]
••
o
KEY:
o
•
o
C)
Group 1 hanks, as classified hy the Board of
Governors of the Federal Reserve System, comprising banks with a combined capital and
surplus of $2,000,000 or more .
Group 2 hanks: capital and surplus of more
than $300,000 and less than $2,000,000.
Group 3 hanks: capital and surplus of $300,000
or less.
Indicates that the specified number of branch
offices of some member hank or banks is located
at the city or town indicated; the main office
may be elsewhere.
DURING
THE year 1953, numerous member banks, because of growth, shifted
from the group 3 classification to group 2. In addition, a number of branch
offices were acquired by member banks - sometimes in the form of purchase
or merger, and sometimes in the form of newly established offices.
The accompanying map brings the picture up to date as of December 15,
1953, showing the location of all member banks of the Fourth District with
number of branch offices indicated in parentheses.
[ 17]
The new
Leased-~re
A
NEW
LEASED-WIRE
system
system of communica-
tion for the entire Federal Reserve System was
put into operation during July, 1953. It is an
automatic teletypewriter system, which operates
on duplex lines at a speed of 75 words per minute
as contrasted with the 60-word speed of the
former system.
The network is operated under contract with
the long lines department of the American Telephone and Telegraph Company. It links together
46 stations in 37 cities throughout the country,
including the 12 Federal Reserve banks and their
24 branches, the Board of Governors of the
Federal Reserve System in Washington, the
United States Treasury offices in Washington
and Chicago, and the Washington offices of the
Reconstruction Finance Corporation and the
Commodity Credit Corporation.
Inserting
tape for automatic sending
Decision to adopt this highly modern system
of teletype communication grew out of an extended study of the communications problem of
the Federal Reserve System which was conducted by a subcommittee of the System's Conference of Presidents.
Technical development
work was carried out by the Bell Telephone
Laboratories.
One of the important advantages of the change
for this bank is that messages between the
Cincinnati and Pittsburgh branches and other
parts of the System now go direct to destination
rather than being manually relayed at the Main
Office. This arrangement not only expedites
service at the branches, but reduces work load
at the Main Office.
Preparing
A fully automatic switching center for the
entire network is located at the Federal Reserve
tape
[ 18]
Bank of Richmond. The center is equipped so
that multiple-address and group-code messages
are distributed from a single transmission. The
switching center is also equipped with an intercept
machine which picks up misdirected messages,
and, in addition, stores up any messages scheduled
for an "out-of-service" line, releasing them only
when the line is able to receive them.
The processes involved in sending and recerving messages over the new system are reduced
to bed-rock simplicity, as may be seen from the
accompanying photos. To send a message, the operator types it out on a special machine, using
two code letters for office of destination and
special functional codes for guiding the mechanism. The automatic closing of a circuit by the
switching center then sends the impulses on their
way, via Richmond, for almost instantaneous
reception at the other end. Incoming messages
are pulled from the receiving machine in a form
Automatic switching center, Federal Reserve Bank of Richmond
suitable for immediate
the individual recipient.
reading or delivery to
About 400 messages, averaging 22 words in
length, are handled daily at the Main Office
alone. A considerable number of the messages
involve telegraphic transfer of funds for commercial banks which are members of the Federal
Reserve System. This important function of a
Reserve Bank-more
familiar to bankers than
to the general public-was
described as follows
by President Wilbur Fulton on the occasion of
the installation of the new system:
"It works this way. Let's say a customer of
a member bank in the Fourth Federal Reserve
District wants to get $5,000 to San Francisco,
and fast, to complete a business deal. His bank
would ask us to transfer the funds. We would
deduct the $5,000 from the member bank's account with us and wire the San Francisco 'Fed'
to credit it to the reserve account of the proper
bank in that city, on behalf of the person or corporation designated. The whole transaction might
take less than half an hour."
Reading Incoming Message
[ 19]
elping the Treasury
he part played by this bank and other Federal
Reserve banks in assisting the Treasury Department in the distribution of new securities 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.
D
Treasury officials determine that public debt
financing will be required within 30 to 45 days to
meet cash requirements of the Government.
Treasury officials meet with representatives of
various banking, investment, savings, insurance
and other groups to determine the amount of
funds available for investment under varying
terms and conditions.
Based on information secured in the conferences concerning the present money and securities market conditions, the Treasury makes a
final determination as to the amount to be offered,
the rate of interest, and the maturity.
D
The Treasury Department then instructs the
twelve Federal Reserve banks to prepare, as fiscal
agents of the United States, subscription forms
and other necessary information regarding the
new offering.
This bank (along with other Federal Reserve
banks) forwards to all banking institutions and
others concerned the announcement, regulations,
forms, etc., covering the new issue.
[201
Float a Bond Issue
• • • •
m
Banking institutions forward subscriptions for
the new issue for their own accounts and the
accounts of their customers; subscriptions may
be sent to the Main Office at Cleveland, or to the
Cincinnati or Pittsburgh branches.
Reserve banks and branches advise the Treasury
Department of amounts of subscriptions (usually by types of investors) that were received by
deadline for subscriptions.
m
The Treasury determines the basis of allotment
among the various types of purchasers, and advises Reserve banks of the decision.
Banking institutions and others are advised of
the allotment basis and asked to remit for amount
of subscriptions which were accepted.
Banks make payment for subscriptions for their
own account and the account of their customers,
by means of: (a) credit to Treasury Tax and Loan
Account, provided they are qualified as Special
Depositaries'!", or '(b) charges to their reserve
balances at this bank, or (c) drafts drawn on their
correspondent.
m
(l)When a bank makes payment for securrties by credit to its
Treasury Tax and Loan Account, its present cash position is not
affected by the purchase of the securities.
Shortly thereafter,
however, the Treasury Department starts making calls against the
Tax and Loan Account balances of the Special Depositaries (through
the Federal Reserve Bank acting as agent) in order to replenish
[ 21]
This bank and its branches effect delivery of
the securities according to instructions of the
subscribers.
its cash. Payments made at such times by the Special Depositaries
to the Federal Reserve Bank, for the account of the Treasurer of
the United States, have the effect of reduciug the reserves of the
depositary banks. The use of this mechanism relieves the shock of
immediate withdrawals at the time of security purchases.
~lat
happens
to worn-out currency?
'"T
HERE IS no good reason why every ragged
dollar bill spotted by a bank in Seattle or Phoenix
or Boston or Miami as being unfit for further
circulation should be shipped all the way to
Washington for verification and destruction, the
Treasury has decided."
With this statement in July of 1953, the
Treasury Department launched a new procedure
for the destruction of worn-out United States
currency-a
procedure which had previously
been worked out in consultation with the Federal
Reserve banks, and which calls for the actual
destruction of the bills at the Reserve banks
instead of at the Treasury in Washington. Reduced shipping costs alone will result in savings
of substantial sums.
.
The new arrangement, which went into effect
at midyear at this bank and other Federal
Reserve banks. applies only to U.S. notes and
Verification
silver certificates. Procedures for disposing of
unfit Federal Reserve Notes, as established by
law, remain unchanged.
Here are the principal steps in the operation
as it is now conducted at this bank: Currency
deposited by commercial banks is sorted, as heretofore, by the Cash department. Bills unfit for
further circulation are segregated. (The tests for
fitness are not changed under the new procedure.)
The unfit bills which take the form of U. S. notes
or silver certificates are then counted and strapped
in units of 100 each (according to denomination)
with ten "straps" combined to make a bundle.
Cancellation is effected by machine-punching four
holes in each bill, with the holes shaped in the
form of a letter "D" to designate the Fourth
District.
After the Cash department has taken the steps
just enumerated, the bundles of cancelled bills are
charged to the Fiscal Agency department of this
bank as representative of the U.S. Treasury
Department.
The Fiscal Agency department
makes a proof and verification of the unfit currency in accordance with instructions outlined
by the Treasury Department.
Sorting
[ 22]
Finally, the bundles are placed in an incinerator
which has been specially constructed for the
purpose (see photo) and are destroyed under a
heat of 2200 degrees Fahrenheit. The incinerator
is gas fired, equipped with air-pressure blower,
dual lock controls for cage and incinerator room,
and other protective features such as screens to
prevent pieces going up the stack. After the
burning, all ash is carefully examined for completeness of destruction. Special supervisory procedures and personnel arrangements are geared
to the nature of the task. When the destruction
has been completed, the account of the Treasurer
of the United States is debited for the amount
of currency destroyed.
The large volumes of unfit currency which
regularly go up in smoke may be judged by the
fact that at this bank, alone, an average of about
7,000,000 bills of varying denominations were
destroyed each month during the second half of
1953. The dollar total of bills destroyed amounted
to about $10,000,000 per month. One-dollar bills
predominate in the mixture that goes to the
furnace; that is not only because of the importance of the one-dollar bill in general circulation,
but also because this denomination wears out
faster. According to Treasury estimates, a onedollar bill has an average life of about 10 months.
More than a billion of them are ordinarily in
general circulation.
Cutting Federal Reserve Notes
The procedure for destruction of unfit Federal
Reserve Notes has remained unchanged, as mentioned earlier. The sorting out, counting, and
cancelling of unfit Federal Reserve Notes is done
at the Federal Reserve Bank by a process similar
to that already noted for United States notes or
silver certificates, but from that point forward,
procedures differ. In the case of Federal Reserve
Notes, the unfit bills which have been punched
with four holes are then cut lengthwise into two
equal parts. (See photo.) The halves are shipped
on different days to the Treasury in Washington,
where they are verified and then destroyed by
incineration.
Altogether, the retirement of paper currency is
a function almost as important as its issuance.
Security and efficiency of operations are required,
and proper timing of the elimination of unfit bills
from circulation is important.
It may well be
imagined that the conduct of everyday business
would be seriously impeded if dollar bills were
permitted to reach a stage where they would
disintegrate in the hand or in the wallet. Reference here is to the physical aspect, not to the
problem of the buying power of dollar bills.
In the Fire
[ 23]
SOME ACTIVITIES
on and off the job
• • •
On these two pages will be seen a few of the
activities which take place at the Main Office
and at the Pittsburgh
Left-hand
and Cincinnati
Branches.
page refers to operations
on duty.
Right-hand page includes glimpses of social or
leisure-time proceedings.
GOMPARATIVE
STATEMENT
December
31,1953,
and December
31
ASSETS
Dec. 31, 1952
$1,446,634,734
85,474,810
1,532,109,544
Gold certificates.
Hedemption fund for Federal Heserve notes ..
TOTAL
GOLD
TOTAL
CASH ....
Other cash
CERTIFICATE
HESERVES.
21,490,858
1,553,600,402
.
Discounts and advances
U. S. Government securities:
Bills
Certificates
Notes
.
Bonds
.
TOTAI~
U.
TOTAL
LOANS
S.
4,184,000
.
74,064,000
498,692,000
1,374,493,000
451,402,000
2,399,101,000
2,403,285,000
.
.
GOVERNMENT
AND
SECURITIES.
SECURITIES..
. ........•......
12,312,000
383,176,806
4,745,838
15,735,369
$4,372,855,415
Federal Reserve notes of other banks ..
Uncollected cash items.
Bank premises
.
Other assets
.
TOTAL
ASSETS
.....•••..•..................•.
LIABILITIES
Federal Reserve notes
.
$2,410,657,455
Deposits:
Member bank-reserve
U. S. Treasurer-general
Foreign..
Other deposits.
TOTAL
cash items
.
LIABILITIES
...
Capital paid in
Surplus (Section 7) ..
Surplus (Section 13b)
Other capital accounts.
LIABILITIES
299,245,872
1,431,138
4,283,78] ,006
.
CAPITAL
TOTAL
1,497,699,030
15,316,010
48,162,000
11,269,50]
1,572,446,541
.
DEPOSITS.
Deferred availability
Other liabilities.
TOTAL
accounts
account.
.
.
.
ACCOUNTS
.
.
AND
CAPITAL
Contingent liability on acceptances purchased
Industrial loan commitments. . . . . . . .
ACCOUNTS
..........•.•.....
for foreign correspondents.
.
.
[ 26]
24,214,800
54,064,650
1,005,665
9,789,294
$4,372,855,415
1,820,876
$'---_-'-75:....:0-'-,5'-'0_0
$
eOMPARISON
OF
EARNINGS
ENSES
FOR THE YEARS 1953 AND 1
1952
s
Earnings ..
Expenses.
NET
ADDITIONS
TO
EARNINGS
NET
....
EARNINGS:
Profit on U. S. Government securities sold (net) ...
All other
.
...
188,345
27,210
215,555
from Net Earnings.
5,553
TOTAL
Deductions
ADDITIONS
Net additions .....
Transferred to reserves for contingencies ..
Paid U. S. Treasury (interest on F. R. notes).
Net earnings after reserves and payments
Dividends paid.
. .. . . . . . . . . . . . . . .
Transferred
44,884,258
9,492,114
35,392,144
to U. S. Treasury ..
.
to surplus (Section 7) .....
.
$
[ 27]
210,002
36,768
30,743,128
4,822,250
1,406,069
3,416,181
A president
is called to Washington
placed in this responsible office a man well known
among bankers and one whose business life has
been spent in commercial banks and with the
Federal Reserve System. His understanding of
the problems of banks and bankers is broad and
practical. We, who have worked with him, know
~
ARE proud of the stature
of men who
have been taken into the national scene from the
states in the Fourth Federal Reserve District.
Federal Reserve Bank of Cleveland was signally honored when Ray M. Gidney, president
of this bank from September 16, 1944, was persuaded to accept the post of Comptroller of the
Currency, which he did on April 16, 1953.
The appointment was highly gratifying to
bankers throughout the United States, for it
Ray M. Gidney, president·
that his administration will add to the high
prestige of the Office of The Comptroller of the
Currency.
September 16, 1944 - April 16, 1953
[ 28]
..
.. and Executive appointments
are made at this bank
Mr. T'hornpsori
Mr. Fulton
ApPOINTMENT OF Wilbur D. Fulton as President of this bank, to succeed Ray M. Gidney,
was made on May 14, 1953, by the Board of
Directors and approved by the Board of Governors of the Federal Reserve System. This was
the high spot of a year of executive changes,
some of which were interlocked with the change
in the presidency.
As of January 1, 1953, Mr. Fulton had been
named First Vice President to succeed William
H. Fletcher, who had retired after 35 years with
this bank. Mr. Fulton's previous career in banking bad included 35 years of service, nearly 20 of
which had been at this bank. His post, immediately prior to appointment as First Vice President,
had been that of Vice President in charge of the
Cincinnati Branch.
As of January 1, also, Roger R. Clouse, formerly
Vice President, was named Vice President and
Secretary, and Harold E. J. Smith was appointed
Vice President.
Mr. Gidney's resignation as President occurred
on April 16. About a month later, Mr. Fulton's
appointment as President was announced. Simultaneously, Donald S. Thompson was named First
Vice President.
Mr. Thompson had previously held the post
of Vice President in charge of Research. His
career as an economist had included service with
several governmental and private research agencies as well as with the Board of Governors of
the Federal Reserve System.
Merle Hostetler was named Director of Research, as of June Ll , to take over Mr. Thompson's former duties. Mr. Hostetler, who had
served 10 years with this bank, had previously
been Manager of the Research Department, and
then Assistant Vice President.
Richard G. Johnson was named at the July
meeting of the Board of Directors to be Vice
President in charge of the Cincinnati Branch.
He had previously been Cashier of the Cincinnati
Branch, culminating many years of service at
that institution. In taking over the top post of
the Cincinnati Branch, Mr. Johnson succeeded
Wilbur T. Blair who had resigned as of July 15
to accept an important post with a steel manufacturing concern.
Mr. Johnson
For a full roster of the officers and directors of the bank as of January
[ 29]
Mr. Hostetler
1, 1954, please turn the page.
JOHN C. VIRDEN (Chairman)
Chairman of thc Board, John C. Virden Company, Cleveland, Ohio
DIRECTORS
LEO L. RUMMELL (Deputy Chairman)
Dean, College of Agriculture, The Ohio State University, Columbus, Ohio
JOHN D. BAINER, President
The Merchants National Bank and
Trust Company of Meadville
Meadville, Pennsylvania
EDISON HOB STETTER, President
The Pomeroy National Bank
Pomeroy, Ohio
J. BRENNER ROOT, President
The Harter Bank & Trust Company
Canton, Ohio
JOEL M. BOWLBY, Chairman of the Board
The Eagle.Picher Company
Cincinnati, Ohio
SIDNEY A. SWENSRUD, Chairman of
the Board
Gulf Oil Corgol'a tion
Pittshurgh, I ennsylvania
EDWARD C. DOLL, President
Lovell Manufacturing Company
Erie, Pennsylvania
ALEXANDER E. WALKER, Chairman of the Board and President
The National Supply Company, Pittshurgh, Pennsylvania
MEMBER
OF FEDEHAL
A DVISORY
COUNCIL
(frmn the Fourth District)
GEORGE GUND, President
The Cleveland Trust Company, Cleveland, Ohio
CINCINNATI
BRANCIl
DIRECTORS
JOHN C. BAKER (Chairman)
President, Ohio University
Athens, Ohio
HENRY C. BESUDEN,
Winchester, Kentucky
Farmer
FRED A. DOWD, President
The Atlas National Bank
Cincinnati, Ohio
L. M. CAMPBELL, President
The Second National Bank
Ashland, Kentucky
JOSEPH B. HALL, President
Kroger Company
Cincinnati, Ohio
E. S. DABNEY. President
Sccurity Trust' Company
Lexington, Kentucky
ANTHONY HASWELL, President
Dayton Malleable Iron Company
Dayton, Ohio
OFFICERS
RICHARD G. JOHNSON, Vice President
JOHN BIERMANN,
JR., Assistant
PHIL J. GEERS. Cashier
CLYDE HARRELL,
Assistant
GEORGE W. HURST, Assistant
[301
Cashier
Cashier
Cashier
WILBUR D. FULTON,
() F Fie 1'.: u S
DONALD S. THOMPSON,
ROGER R. CLOUSE, Vice President
and Secretary
MERLE HOSTETLER, Director of Research
RICHARD G. JOHNSON, Vice President
JOHN W. KOSSIN, Vice President
ALFRED H. LANING, Vice President
and Cashier
President
First Vice President
GEORGE H. EMDE, Assistant Vice President
JAMES R. LOWE, Assistant Vice President
JOSEPH M. MILLER, Assistant Vice
President
HUGH M. BOYD, Chief Examiner
CHARLES J. BOLTHOUSE, Assistant
Cashier
CHARLES E. CRAWFORD,
.MARTIN MORJUSON, Vice President
H. E. J. SMITH, Vice President
Assistant
Cashier
PAUL C. STETZELBERGER,
Vice President
CARL F. EHNINGER, General Auditor
PHILLIP B. DIDHAM, Assistant
Vice President
ELWOOD V. DENTON, Assistant Cashier
ELMER F. FRICEK, Assistant Cashier
GEORGE R. ROSS, Assistant Cashier
HARMEN B. FLINKERS, Assistant
Secretary
I J\' J) U S T l~ I A LAD
VIS () R Y COM M 11' r E E
HERMAN R. NEFF (Chairman)
President, The George S. Rider Company-Engineers,
H. P. LADDS (Vice Chairman)
President, The National Screw and
Manufacturing Company
Cleveland, Ohio
SAM W. EMERSON, President
The Sam W. Emerson Company
Cleveland, Ohio
I'IT1':SHUU(;1I
HU"'NCII
Cleveland, Ohio
JOHN P. McWILLIAMS, Chairman of the Board
Youngstown Steel Door Company
Cleveland, Ohio
ARTHUR W. STEUDEL, President
Sherwin-Williams Company
Cleveland, Ohio
DIRECTORS
CLIFFORD F. HOOD (Chairman)
President, United States Steel Corporation
Pittsburgh, Pennsylvania
MONTFORT JONES, Professor of Finance
DOUGLAS M. MOORHEAD, Farmer
The University of Pittsburgh
North East, Pennsylvania
Pittsburgh, Pennsylvania
ALBERT L. RASMUSSEN, President
PAUL MALONE, President
The Warren National Bank
Second National Bank of Uniontown
Warren, Pennsylvania
Uniontown, Pennsylvania
HENRY A. ROEMER, JR., President
WILLIAM B. McFALL, President
Sharon Steel Corporation
Commonwealth Trust Company of
Sharon, Pennsylvania
Pittsburgh
Pittsburgh, Pennsylvania
OFFICERS
JOHN W. KOSSIN, Vice President
ARTHUR G. FOSTER, Cashier
W_ HUNTER NOLTE, Assistant Cashier
[ 31]
JOHN R. PRICE, Assistant Cashier
JOHN A. SCHM.IDT, Assistant Cashier
ROY J. STEINBRINK,
Assistant
Cashier
THE TWELVE FEDERAL
RESERVE
[ 321
DISTRICTS
@FedFRASER