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1 9 •) H
~

FEDF.TIAT. HE!iiiERVE BANK
0 1 .. C I .F.VE I.Ac:-;n
CLEVELAND I, OHIO

January 16, 1959

To the Banks in the
Fourth Federal Reserve District:

We are pleased to submit this report of the Federal Reserve
Bank of Cleveland for 1958.
In addition to a discussion of the financial
and economic climate of the year, the report contains a section devoted
to our greatly expanded Pittsburgh Branch and to the area which it
serves.
A similar presentation was given in the 1955 report for the
Cincinnati Branch.
Although each year casts its own reflection of industrial and
financial activity, 1958 was marked by the continuation of the sharp
downturn in business until near midyear, followed by an equally rapid
upturn which has overtaken much of the lost ground.
The effect of
these fluctuations was more pronounced in this district than generally
in the nation, for many of our industries are of the heavy goods type
most directly involved.
On the whole, however, managers of business
and financial concerns throughout the District have met successfully
the many problems which inevitably accompany such a shrinkage in
business activity.
In fact, many companies have taken the opportunity
during this recession to increase their efficiency, productivity and
anticipated earnings.
The assistance given to us during the year by leaders of industry, agriculture and finance is acknowledged and appreciated.
Without the cooperation and under standing of the business community
and the public, the discharge of our responsibilities would be far more
difficult.

Chairman of the Board

President

Table of Contents

Monetary Policy in an Era of New Dimensions

3

Banking in the Fourth District
in a year of Recession and Recovery . . . . . . . . . . . . . . . . . . . .

8

An Emergency Banking Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
The Volume of Service Operations . . ... ... .... . ... ... . . ... 12
Chronicles of '58 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

The Pittsburgh Branch ... . .......... .. . .. ........ . ....... 16

Statement of Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Earnings and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Officers

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Branch Directors and Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Retirements and Promotions . .. . .... . ........... . . .. ... .. . 29

MONETARY POLICY ...

Strangely enough, in this new age of venturesome probing
into the reaches of outer space, a purely earth-bound art continues
to intrigue the minds of men everywhere. It is the art of monetary
management.
After centuries of human experience, experimentation and
frustration, money has not yet become a tractable device. It
has not been tamed to do man's bidding in any highly predictable
sense. Occasionally it has been known to go on a wild rampage,
leaving in its wake either the consequences of violent inflation, or
conversely, the ravages of a devastating depression, much like
a powerful experimental weapon suddenly gone berserk.
In this new era of technology an infinitely complex arrangement
of electronic gear can be integrated in such a way as to guide a
monstrous missile thousands of miles to a predetermined goal.
But no computer has yet been devised which will predict the kind
of environment a given monetary policy will encounter in the
course of its trajectory. Possibly this failure is due largely to
man's inability to make up his own collective mind as to
appropriate aims and objectives. A master whose sense of direction
is not clearly defined, and who is indecisive as to his target, can
hardly expect high standards of obedience from the object of
his discipline.
Meanwhile a dynamic economy will not stand still while broad
considerations of strategy are being thrashed out. Each day's
reconnaissance suggests new tactical problems. The past year
produced perhaps more than the typical number of reminders that
monetary management is not susceptible to simple solution and
easy execution. One of the perplexities which provoked diverse
public reactions was the behavior of prices throughout the industrial recession and the subsequent business recovery. Despite the
existence of a noticeable degree of unemployment and excess
3

EMPLOYMENT

an~

PRICES

PERCENT EMPLOYED

P RICE S

10 0

130

be-/

98

.... one of the fea tures of
1958 was th e relative firmness of pr ices of ind ustrial
pr odu cts in the face of a
considerab le vo lum e of unempl oyme nt and excess ca pacity in many industries. In
fact, after on ly a few months
of recove ry, t hese prices
were at a new all -time high.

96

94

L/
/

v--v

~

120

~

PERCENT OF
LABOR FORCE
EMPLOYED *

92

w

11 5

11 0

90

l OS

0

0
19 5 5

1956

1957

195 8

*Seaso nall y adjus ted .

capacity, average prices of industrial products and commodities
held very close to the record high level first reached nearly two
basis of tradition and a century of experience,
years ago. On the some price reaction should have occurred. Was that firmness, in the
face of slackening bus~ness actiyity good, or bad? Opinion on this
point was far from unanimous. Those who yearned for a quick
return to higher levels of production and employment, with only
an over-the-shoulder glance at the chronic decline in the purchasing
power of the dollar, would have welcomed a more liberal monetary
policy and a wider assortment or a mor e powerful charge of
anti-recession measures. On the other hand, those who interpreted
the firmness of the price structure as an indication that the subsequent business boom would touch off a new wave of inflation were
appreheiisive'ibout the retur n of' monetary ease as'well as deeply
anxious about the record peacetime Federal deficit which was
looming.
Possibly much of l he controversy r.egarding the nature and'
location of the enemy (of stability) stems from the fact that some
years ago, ~ith the commendable aim of minimizing the risk of
another prolonged att~ck of depression, the ballast in the hold of
the ship of state was · deliberately shifted-officially and formally
by the Employment Act of 1946. In the cou_se of time, that
r
stratagem may have induced a portside listing of the deck from
which monetary policies are launched-a listing which, while
significant, may not be ascertainable by traditional methods
of dead reckoning. U11til such time as this hypothesis is either
vindicated or disprovel:l, the question of the appropriateness of
monetary policy will probably remain highly controversial.
4

125

Indu st r ial
WHOLESALE PRICES
(1947 - 49 = 100 )

1959

NEW CAPITAL ISSUES during RECESSION and RECOVERY

PRODU CTION INDE X

BILLI ONS Of DOLLARS

180

... . the demand for new
money on the part of corporations and municipalities did
not recede concurrently as
production declined, but established a new all · time high
(in first quarter of 1958). It
was not until after mid -year
'58 that deman·d began
noticeably to fall below year·
earlier levels.

6

160

5

140

120

195 7
*Seasonally adjusted

1958

195 9

*Corporate and mu nicipal. Source : SEC and Bond Bu y er .

A second development which tended to obscure the sights in
terms of the conduct of monetary policy was the volume of demand
for new capital throughout most of 1958. On an accompanying
chart it can be noted that the quantity of new money or credit
sought by corporations and municipal bodies reached a record high
level at the very time that industrial activity was at its lowest.
It was not until a good measure of industrial recovery had been
achieved that the demand for new capital funds abated noticeably.
Does this sequence suggest that a policy of growing ease
should have been pursued throughout 1958 in order to maintain
the demand for new capital? Or was the more recent rise in
interest rates tenable on the grounds that capital spending would
re-expand as industrial recovery progressed and that this, together
with municipal and highway expenditures on a record scale, would
soon be testing the nation's capacity to save? The precise character
of the outlook was further blurred by the prospective needs of
the U. S. Treasury which by the fourth quarter had reached a
level of some 3 billion dollars (quarterly rate). The Treasury's
requirements for new money more than offset the shrinkage in
corporate investment. Fortunately, unlike the first problem, this
question did not entail any deep philosophical considerations; it
devolved entirely upon accurate analysis of the prospective demands for capital.
A third and almost spectacular phenomenon of 1958 was the
apparent tendency of the capital market to discount prospective
monetary policy far in advance of its appearance. Beginning in
late 1957, the rise in prices of fixed income obligations of good
quality was a perfectly logical as well as traditional concomitant
5

FREE RESERVES and U.S. GOVERNMENT BOND PRICES

.... in th e three peri ods pri or
to 1956 when free rese rves
were hovering in the $100$200 million area, prices of
long-term G rnm ent bo nds
ove
flu ctu ated within a range of
21 to 3% But by late 1958,
/1%
.
even th ough a mod erate volume of free reserves was still
being maintain ed, prices of
Go vernm ent bond s had declined to a new postwa r low.

4%

~~~~--~----~--~~--~----~--~~--~4% ­

BJLLJONS OF DOLLARS

+1.0

+1.0

0
-0.5

1952

1953

1954

1955

1956

1957

1958

Shaded oreos i ndicate pe r io d s o f f ree reserv es of $100 -$200 million

of industrial recession. It was only the speed of the readjustment .
in prices that suggested the presence of a new force. The power
of that new force became violently evident with tJ:te realization
that the business decline had halted and that a more than casual
recovery had begun. Thenceforth the capital markets undertook
to discount-again within a period of weeks rather than monthsthe potentiality of.a boom-time degree of monetary restraint which
obviously was still well beyond the realm of visibility.
That this headlong movement was not augmented by monetary
action is indicated on the accompanying chart. It was market
forces, and not the availability of bank credit, which drove bond
prices down to new long-time lows. This suggests that prospective
buyers were willing to put their money to work at long term only
at such yields as might be expected to prevail during the next
period of monetary restraint. The collapse in bond prices undoubtedly was accentuated by the growing "inflation psychosis"
and by the ill-starred speculative positions built up earlier in the
year. But the strong probability remains that henceforth the
monetary authorities must b'e prepared to deal with a money and
capital market which is becoming more and more sophisticated,
if not in forecasting turns in the business cycle itself, at least in
terms of what such turns might imply with respect to capitalized
values of long-term securities.
Does this suggest, not altogether whimsically, that the objectives of central bank policy should be stated even more ambiguously
than at present? Or, more seriously, does it suggest that the
System must adopt new tactics and skills for use whenever the
markets begin to run ahead of policy by a distracting margin?
6

1959

A fourth phenomenon which deserves thoughtful contemplation
was the well-publicized gold outflow which began early in the
year. As may be observed on the accompanying chart, the loss of
gold, while of record amount, did not produce a concurrent shrinkage in the nation's money supply. In fact, by virtue of its statutory
powers, as well as the existence of ample remaining gold stocks,
the Federal Reserve System was able to offset completely the otherwise deflationary and restrictive effects of the gold outflow. This
was accomplished initially by a series of reductions in member
bank reserve requirements and subsequently by open market purchases of U. S. Government securities.
While this unprecedented movement of gold did not impair
the maneuverability of the Federal Reserve System, it did serve as
a pointed reminder that this country can hardly expect to enjoy
perpetual immunity to a plague which has harassed virtually
every responsible government in the free world. Among a host of
nations large and small, only the United States has long been
free from the difficult task of having to defend the value of its
currency vis-a-vis the rest of the world. The experience of the
year 1958 suggests that further complications in the task of
monetary management may be in the making on this score.
All in all, 1958 will be remembered by most people for the single
fact that a sharp business recession, which had given rise to
considerable apprehension, ended in the early spring of the year,
to be followed by an equally distinct phase of business recovery.
The arts of monetary management played some part in the sequence
of events, as is hinted by the symbolic representations of the
design carried on the cover of this report. Neither that design,
however, nor the reality underlying the design, should be read in
terms of an all-powerful monetary authority which is calling all of
the strategic signals. Monetary policy is only one of many factors
constantly influencing the direction and momentum of the
national economy.

U.S. GOLD STOCKS and the MONEY SUPPLY

BILLIONS OF DOLLARS (CUMULATIVE CHANGE SINCE JANUARY I , 19S7)

. . .. the well -publicized outflow of gold during 1958 did
not cause a shrinkage in the
na tio n's money supply. In
fact, the latter rose sharply
during the first half year. The
explanation is that gold losses
were being more than offset
by reductiqns in mem.ber
bank reserve requirements'
and by System purchases of
U.S. Government securities
j,n the open market on a
substantial scale.

4

+

F-:J~iiiiiiiii:~0;-~r:r:;;;~:"":'1~~ +

4

0

-4

1957
* Sea s on a ll y adju s ted .

1958

1959

BANKING
in the Fourth District in a year
of recession and recovery

The record of banking in 1958 is written on a background of
marked changes in the economy. The sharp decline in industrial
production tht·ough April was followed by an equally sharp recovery.
Contraction of business and consumer ·. spending reduced the
demand for bank loans during the decline, but the subsequent
recovery was not fully reflected in bank 'loan expansion. Steps
taken by the Federal Reserve System toward monetary ease,
paving the way for an expansion of bank credit, continued past
midyear. Subsequently, the policy of monetary ease was moderated,
but not tightened to the degree that :prevailed in early 1957.
The principal effect of this combination of changes upon the
balance sheets of banks, in this District as elsewhere, was a
substantial increase in holdings of U. S. Government securities
and practically no change in the volume of loans outstanding. The
fact that the loan volume showed little net change over the year
was in significant contrast to the annual additions to loans which
had prevailed during the previous three years.
Deposits. Total deposits at Fourth District member banks rose
about $325 million during 1958. The policy of monetary ease,
which was pursued during most of the year, resulted in a significant
expansion of deposits during the year. The pattern of change

EPOSITS
Fo u rth District Me mb er

~a nks

7 00
6 00
V)

"'

~

0
0

5 00
400

~

0

z
"'

300

0

~ 200
:1:
""''j

8

100
0

DEMAND DEPOSITS

MILLIONS OF DOLLARS

+BOO

+BOO

+600

+600

+400

+400

+200

+200

0

0

-200
-400

1954

1955

1956

1957

-400

-600
1953

-200

-600
1953

1958

1954

1955

1957

1956

Fourth District Member Bonks

NET CHANGE IN LOANS AND INVESTMENTS

as between demand and time deposits, however, was quite different
from that of other recent years.
During 1958, time deposits at Fourth District member banks
rose about 7 percent, a near-record rate. Demand deposits showed
little change. The decline in loans early in 1958 and their failure
during the second half of the year to reflect fully the business
recovery or seasonal influences were contributing factors. Growth
in time deposits probably reflects higher interest rates paid as
well as the sharp decline in the yield on Treasury bills. In addition,
reduced activity in time deposit accounts during the recession, as
holders became cautious and delayed purchases, partly accounts
for the increase in time deposit balances which occurred during
1958.
Loans and Investments. Total loans and investments at Fourth
District member banks rose about 5 percent in 1958. About nine
tenths of the increase in bank credit represented additions to
investments, principally U. S. Government securities. The predominance of additions to security holdings improved bank liquidity
by reducing the ratio of loans to deposits from 48 percent to 46
percent. While this is a small percentage change, it represented a
substantial dollar volume of potential loan expansion available
to Fourth District member banks through the possible disposition of
securities. The bulk of the addition to bank credit, however,
occurred in lower-yielding assets. The lower rate of return on
investments is shown by the fact that in 1957, for example, Fourth
District member banks earned an average rate of return on loans
of 5.11 percent in contrast to 2.50 percent on U. S. Government
securities.
Composition of Loans. The composition of the loan portfolios
of Fourth District member banks also changed markedly during

9

1958

+400
+300

"'
"'

~ +200

0
0

0

+100

"'
z
0

0

i
-100
-200
-300
1953

1954

1955

1956

1957

1958

Fourth Di strict M e mb e r Bo nks

NET CHANGE IN BUSINESS LOANS

1958. Business borrowing slid off shal'ply during the first six
months of the year. Inventory liquidation and curtailment of plant
and equipment outlays contributed to a $163 million reduction in
business loans outstanding. A continuation of the practice of
borrowing through long-term issues in the capital market, in
relatively large volume, also reduced the dependence of business
on bank credit.
Despite the business recovery during the last half of 1958,
business borrowing from banks fell short of seasonal expectations.
Business loans outstanding at Fourth District member banks
increased an estimated $63 million. For the entire year, outstanding business loans were reduced by about $100 million.
Data obtained from a sample of fourteen large banks that report
weekly to the Federal Reserve Bank indicate that all types of
business, except trade firms and commodity dealers, reduced their
bank-held debt during 1958. The largest reductions can be
attributed to sales finance companies, public utilities, and metals
producers.
Consumer borrowing at Fourth District banks also declined
steadily during· most of 1958. Smaller sales of autos and other
consumer durables reduced the volume of outstanding consumer
loans. Repayments on previously incurred instalment loans were
also a factor.
On the other hand, two loan categories registered gains in 1958.
Security loans increased about 10 percent in response to the large
volume of Treasury financing. The residential construction industry, spurred by further Federal aids and an improved position in
the competition for funds (at least during some parts of the year)
experienced a marked recovery. Real estate loans were at a record
high level at Fourth District member banks as the year ended.
10

An

emergency
BANKING PLAN

The Federal Reserve System has recognized the necessity of
making preparations for the continuance of essential banking
operations in the event of a national emergency such as a nuclear
attack on our nation. To prepare for any contingency that such an
attack might incapacitate the Cleveland, Cincinnati and Pittsburgh
offices of this bank, a Records and Relocation Office was established in Athens, Ohio. This office is continuously active and
is under the direction of a Resident Manager and four full -time
employees. Records essential to the restoration of this bank are
stored there, and all three offices, by use of microfilms or duplicate
copies, send records of essential daily transactions to the Athens
office. By means of these data, the staff can reconstruct the various
accounts which would be necessary to resume operations of this
bank in a limited capacity in Athens.
As a part of the preparedness measures to assure the continuity
of operations of the commercial banking system, plans have been
made by all Federal Reserve banks for decentralizing the collection
of checks. In the Fourth District this bank has divided the district
into 55 regional Emergency Check Clearing Groups. In each group
an agent has been, or will be, appointed to act for Federal Reserve
Bank of Cleveland in the clearing of checks drawn on banks within
its own regional group and also checks drawn on banks in other
regional groups and other Federal Reserve Districts. Each Agent
will make a clearing house settlement with the Relocation Office.
In order to maintain a flow of cash during a national emergency,
20 banks in the Fourth District will be selected to act as agents of
this bank to ship and receive currency from the commercial banks
in their designated areas. It is planned to store cash at certain of
these banks in the near future in order to be prepared for any
emergency which might occur.
11

THE

volume
of SERVICE OPERATIONS
.. . three offices combined

Accommodation to the changes which occurred in business and
finance during the year 1958 took place within the day-to-day
operations which make up the steady stream of central banking
services to the banking and business community. The workload
of this bank, however, was hardly diminished in the aggregate;
some services were demanded in slightly smaller volume, while in
other cases the workload increased as usual.
The check collection department-operating on a continuous
round-the-clock system of shifts-had no letup at all during 1958.
A total of 348 million checks was handled during the year by the
three offices combined, amounting to a 2 percent gain from the
previous year. The Cincinnati Branch and the Pittsburgh Branch
showed increases of about 3 percent in each case, and the number
of checks handled at the Main Office was a fraction of a percent
larger than in the previous year.
The increase in the number of checks handled at the three
offices during the year marked a resumption of the customary
annual rise in this phase of the bank's workload; that rise had been
interrupted in 1957 for the first time in the postwar periodentirely on account of a change in the procedures for handling
Government checks which had the effect of reducing the collection
load at this bank. During 1958, however, the number of Government
checks handled by the bank leveled off at
approximately the same figure as that for
1957. Other than Government checks, the
NUMBER Of CHECKS HANDLED
1958 volume showed a significant increase.

500

Million$ of Items
400--------------------~

200
100

0 t

' 52

12

' 53

'54

'55

'56

'57

'58

Approximately $1,900 million in cu1·rency
and $103 million in coin was paid out to
banks during the year, for use in meeting
the demands of the public. That represented
a decline from the previous year amounting to 10 percent for currency operations
and a decline of less than 2 percent for coin.
The greater steadiness of the coin volume
is consistent with the fact that in the entire
postwar period the requirements for coin

CURRENCY PAID OUT
2 5
·

.B i l l; on s of Dolla rs

' 52

' 53

' 54

' 55

' 56

' 57

' 58

' 52

VOLUME OF TREASURY BILLS SOLD

' 53

'55

' 56

'57

'5 8

NUMBER OF SAVINGS BONDS SOLD

Fi s cal Agency Op e ration s

5

' 54

f1 s cal Agency Operations

20

Bill i o ns. of Do ll ar s

M illio n s of Pieces

1 6 --------------------------------~

' 52

' 53

'54

' 55

' 56

' 57

' 58

' 52

' 53

'54

' 55

seem to have been more expansive than those for currency.
(Reasons for such a development were suggested in last year's
Annual Report.)
In the important area of the bank's operations where it serves
as fiscal agent of the United States, the over-all volume showed
little change in 1958. Some shifts occurred among the volumes of
various classes of marketable Treasury issues, the sales of which
in the Fourth District are handled by this bank; thus, the volume
of certificat es was up, while that of bills and of notes was moderately down from the large totals of the previous year. Sales of
U. S. Savings bon ds handled for the Treasury by the three offices
totaled nearly 13 million pieces during the year, representing
about 2 percent less than the previous year's total.
There are numerous important services of the bank which
are not shown by the accompanying charts but which contributed
as usual to the year's operations. These include the safekeeping of
securities, the telegraphic transfer of funds and many others. In
1958, for example over 145,000 telegraphic transfers of funds
were made, amounting to nearly $95 billion. This represented an
increase of 6 percent over the previous year in number of transfers.
It represented only a fraction of the 1,500,000 postings made to
member bank reserve accounts by the Accounting Department
in 1958.
The work force of the bank declined slightly in the course of
the year. Thus the total of full-time employees at the three offices
combined was about 1600 by the end of the year, as compared
with about 1700 at the start. The change in numbers occurred
almost entirely at the Main Office.
13

' 56

' 57

'58

1st Quarter
2nd Quarter
..........................................................................................................................................................................................................
KHRUSCHEV

World

ousts ~

REDS launch l \12 !On
SPUTNIK III

BULGANIN

Affairs

DEGAULLE b
BANK OF ENGLAND starts to ease up
(from 7 % Ba~k Rote)

; .. ... .......... ................... ....... .......... recurring

DISCOUNT RATE cut
to 2%% ........... ................... ................ again, to 2 \1•% ................ ~ ........... and to 1 :Y.%
.....?'

. .......__

"'

Financial
Developments

&

•

reflecting current credit policy

RESERVE RQMTS. cut

)

_,'i . . . . ? t

~

$500 million . . . . ........ . .... and another $500 million . j ........ and $450 million

MARGIN RQMTS .

c
u

~

........... U.S. GOLD

~TOCKS

declining-hit 11-year low ........

T
to 50%

{\C

s\.o

c,Y... 9

{'(\0(\

Business
News

.

I~
(J,_
:
v~~
:
~, :
........ ..... Profits of Mfg. Corps 35% below yr. ago..... ........
~(.
1
1

co{'('

tlS
-(V~

~~0

~~
~~~

c.O

OucTtot-l

Steel Operations
d ~wn to 48% of capacity

~

................................ IS MASSIVE GOVERNMENT I~TERVENTION NEEDED? .............................. .
Higher Postal Ra1es
enacted

Political
Scene

85th Congress in Session

HOUSING

ARMED FORCES PAY
upped $580 mil
i$1.8 billion )

UNEMP. 8~f\
extendedr3

(

General
News
VAN CLIBURN

acclaimed in MOSCOW

...................... .. Marriage rate at 25-y

14

CHRONICLES OF '58
3rd Quarter

4th Quarter

" ' ' ' 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o o " o o o • • • • 0 ° 000000 • : • • • • o oo oo ooooooooo o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o oo ooo ooo o ooooo oooo o o o o o o o o o o o o o o o o o o o o o o o o o o • • • • • • • • • • • • • • • • • • O • • • • • : • • • • • O o o o o o o o o o o o o oooooooOooOooo oo ooooooooooooooooooooooooooooooooo,.OoOOOOoOooooo•ooOooO o oOooooooooooooooooO

.

.

lz ron

IMRE NAGY

Cold War intensified in Berlin

" OOCTOii! Z;t-flVAG O" sling s REDS

executed

II

LE becomes

Premi~r

............ ...................................................................... new consti tu~ion ok'd

QUEMOY attacks begin

IRAQ COUP
U. S. marinr.s in LE BA NO N

•••••••.••.. •... . •. .....•.••••• ••• •••••• ••••••. ... • •.• s tay until/ate October

t iolE , ce tn A L GER I A cind CY PR US ...... ... .... ... .. ... ......... ...... .. ..... .... ....... .

DISC. RATE upped
to 2% ....... ... ................... ....... .... ..... ...... ... ;......... ..... .......... to 2 Y2%

Fed . Res . holdin gs of U. S. go vt. Sec.

hit $26 billion for 1st time
(up n early

~. . . . . . . . ... . . . .... . . - . . . . .!
0

$2'/
~

billion in y e ar)

182-day Tre asury bill s
introduced

:

:

~

2
-c
"'
c..
c..

MARGIN RQMTS. =>

DEBT LIMIT upp ed
to $288 billion

.......... i........

-as Treasury ca i,h requirements reach record peacetime volume

Whole sa le Pri ces steady nea r all-tim e hi gh .................. .
Unemployment drops below four million
but is still larger than year ago

............. ) AUTO PRODUCTION this year smaller than in 1929 ). ........... .
... ..... .. - a phenomenal Crop Year- ............ ....... ......... ......... j ....................................................

Rates & Pay
:ted

Ta xes e;hended
(exc . on R:R. freight)

Corn Referendu m

ok's lower support prices

Soc . Sec. taxes upped
and benefits libera lized
Nov. 4
86th Congress to have
large Dem. majorities

FED. EMPLOYEES
pay upped 10%
P. P, EN EFITS
dedf13 wks.

PION EER ROCKET
goes 80,000 mi.

1st Atlas ICBM
(at Canaveral)

ALASKA fu become
49th ~State
JET LlNER SERVICE
l o Paris begins

, . .. ....... . ...... SHERMA N ADAMS in limelight . .. . . ... .. .. .. . .. .

U. S. Papulation now 175,000,000
NAUTILUS "s o ils"
under North Pole

it 25-year low ...... ..... .. .. .. ~ .. ..
POPE PIUS XII ol 82
CHAS. F. KETTERING ol 82

sEf1lEl
EE[JE
[JSBE
08!8Il

WHEN THE PITTSBURGH BRANCH opened in
March 1918 it had leased several floors of a building located at Liberty Avenue and Ninth Street.
The Branch subsequently purchased this building and remodeled it in 1922, but in less than a
decade it was outgrown. An entirely new building, designed to meet the special needs of the
Branch, was completed on the Grant Street site
in 1931. This building continues to serve the
Branch, although it is now the smaller part of
the newly remodeled and enlarged quarters
which were opened for use in 1958.

[j~~la

fll[]Ji li

The present ten-story addition provides two
and one-half acres of new space, making available a total of 128,000 square feet of useable
office space which is equipped with the most
modern facilities for conducting large-scale central banking operations.

Liberty Avenue and Ninth Street
1918-1931

717 Grant Street
1931-1957

...
~

En larged and remodeled build ing
717 Grant Street ; 1958-

17

The

area served
A chemicals plant
in West Virginia

The four-county Standard Metropolitan Area of Pittsburgh is
the industrial center of the 25 counties of Pennsylvania and West
Virginia which are served by the Pittsburgh Branch of the
Federal Reserve Bank of Cleveland. With a curi·ent population of
nearly 2,500,000 the Pittsburgh metropolitan area ranks eighth
among the nation's standard metropolitan areas and is the largest
among those of the Fourth Federal Reserve District.
The area served by the Pittsburgh Branch extends considerably
beyond the four-county central core. At the north, located on
Lake Erie is Erie, Pennsylvania, a center of heavy industry with
a current population (metropolitan area) of approximately 240,000.
Next in order of population are Wheeling, West Virginia, and New
Castle, Pennsylvania-historic seats of industry whose manufacturing enterprises are now moving towards diversification. Among
the other highly industrialized cities of the area listed in order

Coal processing plant on the Monongahela

of population are Sharon and Butler (Pennsylvania), Weirton
(West Virginia) and Oil City, Meadville, Uniontown and Warren
(Pennsylvania).
The production of coal, iron and steel is basically responsible
for the area's industrial greatness. The coal industry has been
altered over the years but it is still of great importance. Pittsburgh
is still the steel capital of the nation, although it now shares its
prestige with other steel centers to a greater extent than in the
early days. The production of aluminum, glass, machinery, oil
and chemicals is intertwined in a major way with the area's history
and its industrial pattern. Few industries are unrepresented.
Industrial research is now one of its major enterprises. Statistics
show that the area's manufacturing strength has moved forward
with the times.

Testing steel in a
research laboratory

Shopping scene in McKeesport

The new downtown Pittsburgh

Public square of a western
Pennsylvania town (Mercer)

The

-~ U ~...£;··~~:iness machines
...

··········

surrounds

...

many of the branch's

SERVICE OPERATIONS
Over more than forty years of service
during which the nation has faced many
economic crises, the Pittsburgh Branch has
registered a steady growth in the volume of
business transacted and has increased its
service to banking, industry, commerce, agriculture and to the public. Although the geographical area served is small compared with
the areas served by other branches of Federal Reserve banks, the volume of service
operations is very large.

Intensive use of thoroughly modern equipment, as suggested by the accompanying
photographs, helps the Pittsburgh Branch
render efficient service.
One of the important functions of the
Branch is to provide currency and coin
through the commercial banking system for
the use of industry and commerce. Approximately 93 per cent of the coin disbursed is
wrapped in rolls. The machines used have a

Wrapping coin by machine

20

Handling checks by
proof machine

Sending messages or money
transfers by teletypewriter

capacity of approximately 50,000 rolls per
day. Counting and sorting currency received
from the banks is also an important operation. Each of the currency sorting machine
operators at the Branch handles approximately 25,000 pieces per day.
The check collection department is the
largest in the bank and operates practically
24 hours a day, six days a week, with a daily
average volume of 422,000 items.
A daily average of 150 messages authorizing the transfer of funds is dispatched over
a leased wire system by automatic teletypewriters connecting 36 Federai Reserve offices, the Board of Governors and the Treasury Department in Washington, D. C. Although not pictured, service contributions
by the accounting, fiscal, securities and loan
departments are important functions.
In providing efficient service, the most important asset of the Branch is its highly

Counting and sorting
currency

cooperative and well-trained personnel. As
of December 1958, the Branch had 484 fulltime employees, exclusive of officers, and
five part-time employees. Of these, 54 have
had the experience of 25 years or more of
service, and in addition, 124 have had at
least ten years of service. The six officers at
the Branch have served a total of 221 years.

Storing
coin
in vault

21

past
directors

of the Pittsburgh Branch

(affiliation at time of appointment)
BEN MOREELL
DOUGLAS M . MOORHEAD
SUMNER E. NICHOLS
JOHN H. LUCAS
HENRY A. ROEMER, JR.
ALBERT L. RASMUSSEN
PAUL MALONE
MoNTFORT JoNES
CLIFFORD F. HOOD
WILLIAM B. McFALL
HUGO

E.

LAUPP

SIDNEY A. SWENSRUD
JOHN BARCLAY, JR.
LAURENCE S. BELL
ALBERT H. BURCHFIELD, JR.
THOMAS C. SwARTS
JOSIAH M. KOCH
ROBERT E. BOWIE
HOWARD W. JORD AN
ARCHIE J. MCFARLAND
CLARANCE STANLEY
ROBERT E. DOHERTY
EDWIN B. HARSHAW
WILLIAM C. ARTHUR
GEORGE T. LADD
HARRY S. WHERRETT
SAMUEL W. HARPER
ARTHUR E . BRAUN
HARRY B. McDOWELL
RICHARD COULTER

.T.

SUMNER J ONES

LLOYD W. SMITH
ARTHUR L. H UMPHREY
J AMES RAE
RICHARD B. MELLON
JOSEPH R. EISAMAN
JOSEPH R. NAYLOR
JOSEPH B. SHEA
CHARLES W. BROWN
JAMES D. CALLERY
CHARLES D. ARMSTRONG
JoHN

R.

McCuNE

HARRISON NESBIT
THOMAS H . GIVEN

22

Chairman of the Board,
Jones & Laughlin Steel Corporation, Pittsburgh
Farmer, North East, Pa.
President, Security-Peoples Trust Company, Erie, Pa.
President, Peoples First National Bank and
Trust Company, Pittsburgh
President, Sharon Steel Corporation, Sharon, Pa.
President, The Warren National Bank, Warren, Pa.
President, The Second National Bank, Uniontown, Pa.
Professor of Finance, University of Pittsburgh
Executive Vice President-Operations, United States Steel
Company, Pittsburgh
Pr·esident, Commonwealth Trust Company of Pittsburgh
Pr·esident, Wheeling Dollar Savings & Trust Company,
Wheeling, West Va.
President, Gulf Oil Corporation, Pittsburgh
President, Barclay-Westmoreland Trust Company,
Greensburg, Pa.
E xecutive Vic e President, Union National Bank of Pittsburgh
Vice President, Joseph Horne Company, Pittsburgh
E xecutive Vice President, Woodlawn Trust Company,
Aliquippa, Pa.
Vice President and Dir·ectO?·, Quaker State Oil Refining
Corporation, Oil City, Pa.
President, Security Trust Company, Wheeling, West Va.
President, Pennsylvania Rubber Company, Jeannette, Pa.
President, Wheeling Steel Corporation, Wheeling, West Va.
President, Union Trust Company, Pittsburgh
President, Carnegie Institute of Technology, Pittsburgh
Vice President and Cashier, Grove City National Bank,
Grove City, Pa.
Pr·esident, Talon, Inc., Meadville, Pa.
President, United Engineering and Foundry Company, Pittsburgh
President, Pittsburgh Plate Glass Company, Pittsburgh
Pr·esident, Wheeling Dollar Savings & Trust Company,
Wheeling, West Va.
Pr·esident, Farmers Deposit National Bank, Pittsburgh
President, McDowell National Bank of Sharon, Pa.
Pr·esident, First National Bank and Trust Company,
Greensburg, Pa.
Secretary and Tr ectsurer, Stone & Thomas, Wheeling, West Va.
President, Union National Bank, Pittsburgh
President, Westinghouse Air Brake Company, Pittsburgh
Secretary and Treasurer, Arbuthnot Stephenson Company, Pittsburgh
Vice Pr·esident, Mellon National Bank, Pittsburgh
Vice President, First National Bank, Greensburg, Pa.
President, J. S. Naylor Company, Wheeling, West Va.
President, Joseph Horne Company, Pittsburgh
President, Pittsburgh Plate Glass Company, Pittsburgh
Chairman, Pittsburgh Railways Company, Pittsburgh
Vice Pr·esident, Armstrong Cork Company, Pittsburgh
President, Union National Bank, Pittsburgh
President, Bank of Pittsburgh, N. A., Pittsburgh
Pr·esiclent, Farmers Deposit National Bank, Pittsburgh

1957-58
1953-58
1956-58
1955-57
1951-56
1954-56
1953-55
1949-54
1952-54
1952-54
1951-53
1949-52
1950-52
1946-51
1946-51
1945-50
1946-50
1945-49
1945-49
1943-48
1938-45
1942-45
1941-44
1943-44
1937-42
1935-41
1938-40
1926-37
1936-37
1933-35
1931-36
1934-36
1927-35
1930-34
1917-33
1925-32
1925-30
1928-30
1917-28
1917-26
1923-25
1922-23
1919-22
1917-19

Guiding the
Pittsburgh Branch

todaY

Chai1·man
JOHN C. WARNER, President
Carnegie Institute of
Technology
Pittsburgh, Pennsylvania

D I RECTORS
(as of Jan. 1, 1959)

A . BRUCE BOWDEN,
Vice President
Mellon National Bank and
Trust Company
Pittsburgh, Pennsylvania

LAWRENCE 0. HOTCHKISS,
President
The First National Bank
of Mercer
Mercer, Pennsylvania

FRANK C. IRVINE, President
First National Bank
in Tarentum
Tarentum, Pennsylvania

JOHN T . RYAN, JR., President
Mine Safety Appliances
Company
Pittsbu rgh, Pennsylvania

WILLIAM A. STEELE, President
Wheeling Steel Corporation
Wheeling, West Virginia

IRVING W. WILSON,
Chairman of the Board
Aluminum Company of
America
Pittsburgh, Pennsylvania

J OHN W . KOSSIN

Vice President of
Federal Reserve Bank
of Cleveland, in charge
of the Pittsburgh
Branch

ARTHUR G. FOSTER
Cashier of the
Pittsburgh Branch

23

Comparative Statement of Condition

Dec. 31, 1957

Dec. 31, 1958

ASSETS
Gold Certificate Account

0

0

0

0

0

0

0

ooo o o oo o oo o o o oo o o

0

0

0

Redemption Fund for Federal Reserve Notes
TOTAL GOLD CERTIFICATE RESERVES
0

0

0

0

0

0

0

0

0

0

oo
0

0

o

0

0

0

0

0

0

0

0

0

o
0

0

0

0

0

0

0

0

o
0

0

0

0

0

0

0

0

0

0

0

oo o
ooo
0

0

$1,443,592,901

$1,943,736,050

87,749,785
1,531,342,686

79,557,320
2,023,293,370

·;::

F ederal Reserve Notes of Other Banks
Other Cash

0

0

0

0

0

0

0

0

0

0

0

0

o o o oo o

0

0

0

0

0

0

0

0

TOTAL CASH
Discounts and Advances

00

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

00

0

0

0

0

0

00

00

00

00

00

o oo oo oo o o o

0

0

00

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

00

00

0

0

0

0

0

0

0

0

0

0

oo o
0

0

00

o
0

0

00

00

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Bank Premises
Other Assets

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

o oo oo oo oo oo oo oo o o oo o o o
0

0

0

0

0

0

0

0

o o o oo oo o o
0

0

0

TOTAL ASSET:;

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

•

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

o o
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

o

o

0

0

0

o

0

0

0

0

o

0

0

0

oo oo o
0

0

22,701,267
2,074,4 75,007

4,368,100

4,200,000

199,221,000
1,650,967,000
253,851,000
219,876,000
2,323,915,000
2,328,283,100

86,395,000
1,750,929,000
-0246,100,000
2,083,424,000
2,087,624,000

543,120,998

490,270,788

0

0

Uncollected Cash Items o

28,480,370

28,070,601
1,588,520,407

0

0

oo

Uo So Government Securities:
Bills
Certificates
Notes
Bonds
TOTAL Uo So GOVERNMENT SECURITIES o o oo o o oo o oo o oo
TOTAL LOANS AND SECURITIES oo o o o oo o oo o ooo ooo oo oo o
0

29,107,120

0

0

0

0

0

0

o

9,432,144

9,678,357

12,769,566

19,341,216

$4,482,126.215

$4.681,389,368

$.2,571,637,845

$2,624,652,920

1,344,044,860
4,656,414
20,915,000
5,053,709
1,37 4,669,983

1,486,691,067
45,777,931
30,690,000
5,483,502
$1,568,642,500

413,145,265

371,625,775

1,853,247
4,361,306,340

1,483,968
4,566,405,163

0

0

LIABILITIES
Federal Reserve Notes
Deposits:
Member Bank-Reserve Accounts
o
Uo S. Treasurer-General Account
Foreign
o o
o
ooo oo oo o
o o o
Other Deposits
o
TOTAL DEPOSITS o oo o o oo oo oo oo o o oo oo oo o oo o oo o oo o oo o o o
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Deferred Availability Cash Items

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

o oo o o
0

0

0

o

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0.

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

o

Other Liabilities
o
o o
TOTAL LIABILITIES o oo oo oo oo oo oo oo oo o o oo oo o oo o oo o oo o o
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

•

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

CAPITAL ACCOUNTS
Capital Paid In o

0

0

Surplus (Section 7)

0

0

0

0

0

Surplus (Section 13b)

o

0

0

0

0

0

0

0

0

0

o o o oo o

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

o

0

o

0

0

0

oo o oo oo o o o
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Industrial Loan Commitments

0

0

0

0

0

0

0

0

0

0

.

o oo oo o o
0

0

0

0

0

0

0

0

0

0

Contingent Liability on Acce{ltances Purchased
for Foreign Correspondents
0

0

0

o oo o oo o oo oo oo oo o oo o o oo oo

Other Capital Accounts o oo o o oo oo oo o o oo o oo oo o o
o
TOTAL LIABILITIES AND CAPITAL ACCOUNTS
0

o

0

0

0

o

0

0

0

0

0

0

0

o

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

o

0

0

0

0

ooo o
0

0

0

0

0

0

0

0

0

0

0

0

!

3·4,246,150 I
76,642,500* .
-0-*

0

0

I

9,93;,225
$4,482,126,215 I

$

32,514,550
71,550,353
1,005,665

9,913,637
$4,681,389,368

,,
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

* Repayment of $1,015,571 to the Secretary of the Treasury resulted in the elimination of Surplus Section (13b) and a reduction of $9,906 in Surplus Section (7).

24

$

$

6,03.,200

$

6,849,000

$

35,000

$

77,450

Comparison of Earnings and Expenses

1958

1957

Total Current Earnings ............. . .. . ....................... .

$65,617,595

$66,494,591

Net Expenses ... ... ... . ... . ........ . .............. . ......... . . .

12.615,784
$53,001,811

12,362,162
$54,132,429

13,848

14,874

-0-

114,553
4,625
134,052

CURRENT NET EARNINGS

. . . . . . • . .. . . • . . . . . . . . • . . • . . •

Additions to Current Net Earnings:
Profit on Sales of U. S. Government Securities (Net) ....... .
Reimbursement for Fiscal Agency
Expenses Incurred in Prior Years .... . ........... . . . .. . . .. .
All Other ..... ... ......... . .......... . . . .. . . . ........ .. . . . .
TOTAL ADDITIONS

. . . . . .... .. , . . . . . • . . • . . . . . . . . . . . . ..

Deductions from Current Net Earnings:
Reserves for Contingencies ...... .. .. . .. . . . ................. .
Retirement System (Adjustment for Revised Benefits) . . . . . ... .
All Other ...... ... . ... ............ . .... . ......... . ....... . .
TOTAL DEDUCTIONS .. .. . . . . . . . •. . • . . . . . . . . . . . . . . . . . . .

18,656
32,504
17,393

-0558
17,951

Net Deductions .......................................... . ... .. .

18,614
752,928
2,510
774,052
640,000

Net Additions .... ............... .... ................ .. ........ .

14,553

Net Earnings Before Payments to U. S. Treasury . . . .. ....... . .. . .

53,016,364

Paid U. S. Treasury (Interest on F. R. Notes) ...... . ............ .

45,918,551

46,416,660

Dividends . .................................... . .. . ...... . ..... .

1,995,760

_ 1,918,377

$ 5,102,053

$ 5,157,392

Transferred to Surplus (Section 7) . .............. . .............. ,

53,492,429

DISPOSITION
OF GltOSS "
EARNINGS

25

directors
FEDERAL RESERVE BANK OF CLEVELAND
Chai1·man
ARTHUR B. VAN BUSKIRK
Vice President and Governor
T. Mellon and Sons
Pittsburgh, Pennsylvania

Deputy Chairman
JOSEPH H. THOMPSON, President
The M. A. Hanna Company
Cleveland, Ohio

A. B. Van Buskirk

J . H . Thompson

RAY H. ADKINS, President
The National Bank of Dover
Dover, Ohio
AUBREY J. BROWN, Professor of Agricultural
Marketing and Head of Department of
Agricultural Economics
University of Kentucky
Lexington, Kentucky
JOHN A. BYERLY, President
Fidelity Trust Company
Pittsburgh, Pennsylvania

1959

JosEPH B. HALL, President
The Kroger Co.
Cincinnati, Ohio

(as cf Jan. 1)

CHARLES Z. HARDWICK
Executive Vice President
The Ohio Oil Company
Findlay, Ohio
GEORGE P. MACNICHOL, JR., President
Libbey • Owens• Ford Glass Company
Toledo, Ohio
PAUL A. WARNER, President
The Oberlin Savings Bank Company
Oberlin, Ohio

MEMBER, FEDERAl
ADVISORY COUNCil
REUBEN B. HAYS, Chair man of the Board
The First National Bank of Cincinnati
Cincinnati, Ohio

26

officers
FEDERAL RESERVE BANK OF CLEVELAND
WILBUR D. FULTON

. . . . . . . . . . . . . . . . . . . . President

DONALD S. THOMPSON . . . . . . . . First

Vice President
President
RoGER R. CLOUSE . ... Vice Pt·esident and Sem·etat-y
GEORGE H. EMDE . . . . . . . . . . . . . . . . . . . . . . . .. Cashier
CLYDE HARRELL . . . . . . . . • . . • . .. .... Vice President
L. MERLE HOSTETLER . . . . . . . . . . . . . . Vioe President
RICHARD G . JoHNSON . . . . . • . . . . . . . . Vice President
JOHN W. KossiN . . . . . . . . . . . . . . . . . . Vice Pt·esident
MARTIN MORRISON . . . . . . . . . . . . • ... Vice President
PAUL C. STETZELBERGER .... • . . . . . . Vice P?·esident
CARL F. EHNINGER . . . . . . . . . . . ... General Audita?·
JOHN J. BALLES . . . . . . . . . Assistant Vice President
PHILLIP B . DID HAM . . . . . . Assistant Vice Pt·esident
EDWARD A . FINK .. .. ... . Assistant Vice President
JOSEPH M. MILLER . ... . .. Assistant Vice President
PAUL BREIDENBACH . . . . . . . . . . . . . . . . . . . . . . Counsel
FRED 0 . KIEL .... Senior Economist-Office Manage?·,
R esearch Department
GEORGE T. QUAST . . . • . . . . . . . . . . . . Chief E xamine?·
HAROLD H. RENZ . . . . . . . . Assistant Chief E xamine?·
CHARLES J. BOLTHOUSE . . . . . . . . . Assistant Cashie?·
CHARLES E . CRAWFORD . . . . . . . . . . Assistant Cas hie?·
ELWOOD V. DENTON . . . . . . . • . . . . Assistant Cas hie?'
ANNE J. ERSTE . . . . . . . . . . . . . . . . Assistant Cashie?·
ELMER F . FRICEK .. . . . . . . . . ... . Assistant Cashie?·
JOHN J. HoY . . . . . . . . . . . . . . . . . . Assistant Cas hie?·
JOHN E. ORIN . . . . . . . .. . . . . . . . . Assistant Cashie?'
HARMEN B. FLINKERS . . . . . . . . . Assistant Sec?·eta?-y
DWIGHT

L.

ALLEN . . . . . . . . . . . . . . . . . Vice

W. D. Fulton

D. S. Thompson

1959
(as of Jan. 1)

27 .

branch directors
and officers
DIRECTORS-1959
ANTHONY H ASWELL (Chairman)
President, The Dayt on Malleable Iron Company, Dayton, Ohio

ROGER DRACKETT, President
The Drackett Company
Cincinnati, Ohio

FRANKLIN A. McCRACKEN
Executive Vice President and Trust Officer
The Newport National Bank
Newport, Kentucky

W. BAY IRVINE, President
Marietta College
Marietta, Ohio

FRANK J . VAN LAHR, President
The Provident Savings Bank and
Trust Company
Cincinnati, Ohio

IVAN JETT
Farmer
Georgetown, Kentucky

THOMAS M. WOLFE, President
The Athens National Bank
Athens, Ohio

OFFICERS
RICHARD G. JOHNSON . .. . . ... . . .... Vice Pt·esident

PHIL J. GEERS .. . ... . .. . . . . . ... . . . .... . . . Cashim·
JOHN BIERMANN, JR.

. .... . . ... . A ssistant Cashiet·

GEORGE W. HURST . .... . .... . . . . A ssistant Cashier
WALTER H. MACDONALD ... . .. . . . A ssistant Cashier

DIRECT0R5-19 59

( Please see list, with photos, on page 28.)

OFFICERS

JoHN W. Kas siN .. . Vice President
ART HUR G. F O
STER ... .... Cashier
J OHN A. SCHMIDT

P AUL H. DoRN

Assistant Cashier
CHARLES E . HOUPT

Assistant Cashiet·

28

Assistant Cashim·
RoY J . STEINBRINK

Assistant Cashier

retirements
and promotions

Retirements

H. E . J. SMITH, Vice P1·esident,
December 31, 1958
HUGH M. BOYD, Chief Examine?·, August 31
JOHN R. PRICE, Assistant Cctshie1·,
Pittsburgh Branch, January 31
W. HUNTER NoLTE, Assistant Cashie1·,
Pittsburgh Branch, May 31

Promotions

PAUL BREIDENBACH, Counsel, July 1, 1958
FRED 0 . KIEL, Seni01· Economist-Office Manager,
Research Department, January 1
GEORGE T. QUAST, Chief Examine?·,
September 1
HAROLD H. RENZ, Assistant Chief Examiner,
September 1
CHARLES E. HOUPT, Assistant Cashier,
Pittsburgh Branch, February 1
PAUL H . DORN, Assistant Cashie?·,
Pittsburgh Branch, June 1

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