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Federal
Reserve
Bank
of
Cleveland

ANNUAL
R E PO RT

January 18, 1962
To the Member Banks of the Fourth District:
We are pleased to present this Annual Report for 1961.
The lead article deals with several important features of the
current monetary and credit environment, particularly those
which may have some implications for public policy during 1962.
The focus of the second article is the Fourth District itself and
recent economic developments within the area which this bank
serves.
The Report also contains the customary financial statements,
as well as the current roster of officers and directors. We are
saddened that, among changes in personnel, we must include the
passing of Mr. John W. Kossin, long-time vice president in charge
of our Pittsburgh branch.
On the facing page is our tribute to the man who was chairman
of our Board of Directors during the past five years. His creative
and constructive leadership will indeed be missed. Mr. Van Buskirk
was succeeded on January 1 by Mr. Joseph B. Hall of Cincinnati
whose qualifications stem not only from previous experience as a
director of this bank but also from his many other attainments
in public and private enterprise. It is fortunate that men of this
caliber, who have earned their letters, so to speak, in successful
leadership of civic as well as business affairs are willing to serve
as directors and to render a valuable public service in the realm
of central banking.
Finally, on behalf of the staff, I wish to express appreciation
for the assistance and cooperation we have received from financial
institutions, business firms, and others in carrying out our
responsibilities.

President

Retirement of Arthur B. Van Buskirk
as Chairman of the Board

AT the Buskirk the year 1961, Mr.Pennsylend of
Arthur
B. Van
of Pittsburgh,
vania, completedsix years as a director of
the Federal Reserve Bank of Cleveland,
serving as deputy chairman of the Board
of Directors during his first year and as
chairman during the succeeding five years.
During the past year Mr. Van Buskirk
also served as chairman of the Conference
of Chairmen of the twelve Federal Reserve
Banks. His role in the Federal Reserve
System has been a significant part of his
wide and deep contribution to the leadership of public affairs.
Mr. Van Buskirk has been keenly aware
of the need for adequately trained personnel to carry out the functions of the System; he gave active support to a policy
designed to obtain qualified people for

development in the Federal Reserve Bank
of Cleveland. He has also been concerned
with the inadequacy of public understanding of the responsibilities of the Federal
Reserve System. Through the Conference
of Chairmen he strove to activate programs
of public information on the part of all
Federal Reserve banks.
Mr. Van Buskirk's abiding interest in
civic affairs will no doubt continue as he
serves on numerous foundations and advisory committees of a public nature, and
holds membership on boards of directors
of important corporations. The vigor and
imagination with which our retiring chairman fulfilled his offices has been a source
of inspiration to this bank and throughout
the System.

PROBLEMS

FOR

MONETARY

POLICY

In contemplating some of the problems
for monetary and credit policy which are
being carried over into 1962, it seems
proper to take one more look at a few of
the past year's distinctive features, and
the setting in which they occurred.
In late February it was announced that
the long-standing "bills preferably" policy
had been deemphasized by the Federal
Open Market Committee. That bit of
financial intelligence had to compete, however, with a variety of absorbing news
from the international front. "What next
in the Congo?" was, a far more popular
question than" What next in the Government securities market?"
In early March, the upward revaluation
of the Deutsche mark opened up all kinds
of possibilities and conjectures in the minds
of international traders and speculators.
Subsequent shifts of hot money created
an extraordinary challenge to the major
central banks of the West. The American
public, too, was agog about foreign possibilities; the college generation (and its
parents) was all of a flutter over the pros
and cons of the newly-announced Peace
Corps.
One day, late in July, news flashed from
across the water that Great Britain had
invoked a policy of severe credit restraint

2

in order to defend sterling. This had real
implications for American monetary policy,
particularly with reference to interest rates.
The general public, however, was more
interested in guessing when the next pilot
would be forced in midair to change his
destination, than in the question of who
hijacked the pound - and why? Many
people had a greater emotional stake in
what could be bought in which store on
Sunday than in the weekday discount on
forward sterling.
Around mid-August, the nation received
statistical verification that all of the ground
lost during the preceding recession had
been regained - in terms of industrial production. Paradoxically, this good news
produced some disconcerting and disheartening echoes especially among those who,
regrettably, had not yet been able to find
re-employment during the upswing. Public
concern over the employment situation
had to compete with deep popular interest
in the exciting attack on another long-time
record - the home-run record.
Late in November, official figures confirmed that this country's gold stock had
slipped another notch and was below $17
billion for the first time in the postwar
period. A more romantic subject of conversation, however, was the auction a few

days earlier of a now-famous art treasure
for a fabulous sum. It was unusual to find
a contemporary Aristotle contemplating
the profile of the dollar's future.

liquidity of the banking system. The past
year's developments in each area may
have some relevance for 1962.

Perhaps it is permissible to add to these
signal occurrences of 1961 an incident
which of itself was quite trivial. On June 1,
the last Panama Canal bonds matured.
This $50 million issue had been floated in
1911 and was symbolic of an engineering
achievement in a field where a European
power had failed. However, there was no
ceremony last June; the current preoccupation was the implication of the proposal
to spend $5 billion or more to get an
American on the moon - first, if possible.
This series of vignettes may have served
to recapture some of the composite flavor
of the past year, and to reconstitute the
general environment within which monetary policy was being formulated and administered. Federal Reserve policies - together with fiscal policy and public debt
management - continued to influence
such basic aspects of the economy as the
money supply, interest rates, and the

Money Supply. It is too early to reach
a firm conclusion as to the appropriate
rate of monetary expansion for 1962. The
past year's experience, however, throws
some light on the complexity of the problem. During 1961, the active money supply grew by only some 2Yz-3 percent; see
first chart. (In fact, over the five months
April through August, while industrial recovery was proceeding apace, there was
no net increase at all.) This is a lower
rate than that of 1958, for example, during
which the active money supply expanded
by almost 4 percent. (In the accompanying
charts, the year 1958 was chosen as a
basis for comparison, partly because that
also was a recovery year, and partly because 1958 may stand for an era when
monetary policy was not inhibited by
balance-of-payments complications.)

Before one reaches any tentative conclusion as to whether the nation's active

3

medium of exchange should be encouraged
to grow more rapidly henceforth, it may
be instructive to examine the concurrent
behavior of another highly liquid form of
purchasing power - the time deposits of
commercial banks.
During 1961, time deposits, as shown
by a chart on the previous page, expanded
on the order of $11 billion as against a gain
of only some $5 billion in demand deposits.
The expansion was more vigorous than in
a year like 1958 and it was superimposed
upon what was already a record level of
such deposits. Part of the latest sequel of
expansion is attributable to the higher rate
of return offered, as compared with earlier
years or with other investments, and part
to sheer consumer preferences between
spending more or saving more.
VVhatever the reason for the surge in
time deposits, if the trend continues
through 1962, it will constitute a drag on
the growth of demand deposits - the active money. Conceivably the trend will be
reversed some day. Under certain conditions, holders of time deposits may be
inclined to draw down their balances for
one purpose or another, or at least to
refrain from accumulating such funds as

ARKET
a CORPO

ELD

0

ATE BON

(monthly

averages)

rapidly as in the past, with an inverse
effect on checking account balances. Over
this allocation of funds, monetary policy
has little direct control. The formulators
of policy, however, are under strong compulsion to evaluate the public's inclinations
in this respect and to assess as accurately
as possible the implications of this mass
of passive purchasing power, as well as of
other non-money liquid assets extant in
the economy.
Interest Rates. In fostering an expansion of commercial banks' deposit liabilities
during 1961, the Federal Reserve System
had to keep a sharp eye on money rates,
particularly short-term rates which are
most sensitive to yields obtainable abroad.
That complication had not yet appeared
in 1958. In that recession year, money
rates were permitted - or encouragedto decline to low levels during the period
of industrial slackness. In the past year,
however, the short-term rate (represented
in an accompanying chart by the market
rate on 91-day Treasury bills) fluctuated
within an exceptionally narrow band.

4

The maintenance of such a delicate
balance would have been much more difficult, if not impossible, if the System had
adhered strictly to a policy of purchasing
only Treasury bills when member bank
reserves needed replenishment. During the
year 1961, the System added some $1.8
billion to its holdings of U.S. Government
securities, in the course of providing additional reserves for the member banks. If
all those purchases had been concentrated
in the short-term bill market, yields on
bills might have been driven down to an
unsustainable level. With reference to the
stability of the bill rate, debt management
also played a significant role. The shortfall
of Treasury receipts, particularly during
the second half of 1961, was financed in
large part by the issuance of short-term
Treasury obligations.
The increasing
quantity of such instruments outstanding
tended to lend support to the level of yields.
Longer-term rates, too, moved within a
relatively narrow range, at a level some
distance above the 1958 experience. This
was a more-or-less autonomous movement;
the extent to which it can be said that
market forces were offset depends, for
example, upon interpretation of the effect
of the purchase of $100 million-odd longterm Treasury bonds by the Federal Reserve System, stretched over a period of
nine months.

tial by-product of the Treasury deficit, the
financing of which was commented upon
in an earlier paragraph. Subordinate also
is the fact that the highly liquid position
of the banking system is the result of a
slower-than-expected rise in demand for
commercial and industrial loans, as well
as a determination on the part of the banks
to be ready to accommodate such demand
when it materializes. The point of main
interest to the Federal Reserve System is
whether this very liquidity may some day
constitute an impediment to the administration of a more restrictive monetary
policy. Conceivably, no such contingency
will arise in 1962. But central banking must
examine its capabilities from time to time
in order to ascertain their potential
effectiveness.

HO
as

M*

I

Billion

$

(SEP)
25

20

Bank Liquidity. A final feature of the
past year was the extraordinary increase
in holdings of short-term Government securities by the commercial banking system.
(See final chart.) This may have special
relevance for monetary policy in 1962. As
recently as mid-1960, commercial banks'
holdings of this liquid type of investment
were equal to less than 3 percent of total
assets. In the ensuing eighteen months,
such holdings were increased to nearly
10 percent of total assets. It is only of
secondary importance that this was a par-

5

BUSINESS
FINANCIAL

Business opened the year 1961 on a note
of pessimism. It was widely alleged that
the recession was going to be "longer and
deeper than anyone thinks". However, a
strong force of business recovery cut
through the somewhat circular currents of
business sentiment and established itself
even before winter had fully changed to
spring. February turned out to be the
month of cyclical trough for most basic
business statistics. Broadly, this was true
for business of the Fourth Federal Reserve
District as elsewhere. With the important
exception of a somewhat sluggish performance of retail trade, most of the indicators
of business activity - especially those related to industrial production and resumption of inventory building - marched forward for a number of months in record
or near-record style.
During August, September and early
October, however, a pause or even a slight
reversal interrupted the forward movement. The belief that this was only a
temporary phenomenon was based largely
on the general strength of the underlying
forces affecting business, as measured
against the rather special factors which
were featuring the lull; such special angles
included the impact of strike shutdowns,
affecting in turn the two largest auto

6

AND
DEVELOPMENTS

makers, and (to a less extent) some weather
factors, including hurricane effects. Some
of the interrupting elements bore with
accentuated severity upon the leading
types of manufacturing enterprises in the
Fourth District, as will be explained in
more detail below.
It was mid-November before impressive
evidence became available to support the
hope and belief that the setback was indeed
only a "pause" in a forward movement.
Such evidence of renewed expansion accumulated in the final month of the year,
making possible a spate of year-end forecasts of a rather glowing 1962. Such, in
very brief outline, was the pattern of
business change during the year just past.
The most brilliant and daring of business
forecasters could hardly have foreseen that
particular pattern with any degree of
accuracy.
Since the fluctuations
in industrial
activity during the year were especially
marked in the durable-goods lines (as is so
often the case) the heavy-industry complex of Ohio and western Pennsylvania
was substantially affected. Steel, autos and
auto parts were in the very center of the
year's industrial oscillations, both in the
cyclical upturn itself and in the minor
variations previously mentioned. The

rubber industry, centered at Akron, is in
large measure auto-oriented; machinery
and other metal-fabricating
industries,
which have especially heavy representation in the Fourth District, are all part of
the steel-and-heavy-industry complex, and
in varying degrees they participated in the
swings of business activity in 1961. Steel
and autos may now be examined in somewhat more detail.
Steel. Although steel output totaled
about the same in 1961 as it had in the
previous year (slightly less than 100 million
ingot tons in the nation in both cases) the
path of change during the year was, with
some exceptions, upward from a relatively
low starting position; during 1960 the
course had been generally downward from
a high position. A diagram of the two
years plotted upon the same scale of
months shows an effect remarkably like
the letter "X",
as pictured
by an
accompanying chart.

The spurt in new car registrations in Cleveland during the late months of the year
reflected retail trends generally and climaxed a rather patchy year for autos.
INDEX
1957-59~ 100
150

125

100

75

50

'<{

25

INIlEX

1957-59= 100
150

125

100

75

50

25

a
Steel mills in the Fourth District (Pittsburgh,
Youngstown, Cleveland, etc.) shared in the
rising trend of output during most of 1961,
as contrasted
with the previous year's
downtrend.

Marked interruptions in the upward
movement of steel output during 1961
occurred, first in late spring and summer
(with declines which were more than
seasonal) arid- again in October and early
November; in both cases a delay in orders
from the auto industry was the principal
factor. Especially in the second episode,
the inventory of semi-finished steel held
by the mills, themselves, had been allowed
to grow to more than customary levels in
an effort to be ready for quick deliveries of
steel when auto orders were unleashed;
delays in the auto orders resulted in temporary slowing in ingot output to restore
the mill positions to a balance. Steel mills
located in the Fourth District were affected
by the October-November cutbacks somewhat more than mills located elsewhere
in the nation.
A continuation of notable achievement
in the improvement of steel-making techniques was observable during the year.

7

The industry is acutely aware of the competition being offered by substitute industrial materials of domestic manufacture as
well as competition from foreign-made
steel. Such factors, along with the haunting
pressures of rising wage rates, have provided powerful inducements to the development of cost-cutting measures.
Autos. The year for the auto industry
was also replete with adventures and misadventures. (That industry has become
of increasing importance to the Fourth
District in recent years, insofar as certain
full-scale assembly plants have been added
to the manufacturing of many varieties
of auto parts which has long characterized
the District.) During the first quarter of
the year, auto manufacturers were intent
upon reducing dealer stocks; in the second
quarter, a considerable resumption of output occurred in response to better car
sales. During the summer, an early model
change-over was complicated by the prob-

Downs and ups in manufacturing employment were especially marked in the Fourth
District during the recesston-recovery.cycle
of '60-'61.

8

Billion

9
8

6

4
3

o
The total of bank loans outstanding in Fourth
District banks showed little net change during 1961, while
investment
holdings
increased substantially.

lems surrounding the expiration of labor
contracts in the industry.
Hopes for a good reception of the new
models were just beginning to materialize
in the early fall, when strike delays took
their toll of auto output, as previously
mentioned. Once over this hurdle, however, the industry reached a new clearing.
By late October and November, sales of
autos were in a surge; output rates were
raised sharply to meet the immediate demand as well as to rebuild inventories in
a new auto cycle. By the end of the year,
the auto industry was playing a leading
role in sparking the general economy; the
outlook for a big auto year in 1962 was a
matter of widespread comment.
The revival of auto buying was a principal factor, although not the only one, in
the general forward push of retail sales
which became apparent in late fall-somewhat belatedly according to many views,
although precedents had not been lacking
for a delay in consumer response to a

$

general recovery of the economy. A chart
on page 7 shows the spurt in auto sales
which occurred in the metropolitan area
of Cleveland during October and November. That spurt was fairly typical of
nation-wide experience.
Banking. Associated with the industrial
developments mentioned above, as well as
with other factors of a more financial cast,
commercial banks of the Fourth District
experienced a 1961 pattern which included
some elements of sluggishness and others
of vigor. Both in this District and on a
nationwide scale, the demand for bank
loans lacked exuberance during most of
the year, although a pickup occurred in
the fourth quarter. As an accompanying
chart shows, the level of total loans outstanding showed little net change during
the year. Business loans were quite sluggish
during considerable parts of the year, while
real estate loans and consumer loans outstanding edged up slightly. Bank resources
veered toward investment channels, as
shown by the second line on the chart.
Holdings of short-term investments rose
markedly in the early fall as mentioned
in another part of this Report. Banks in
the aggregate were in a relatively easy
reserve position, as made possible by
Federal Reserve policy. Most limitations
were on the demand side.
Some Problems. Even in this very brief
review, it is appropriate to mention a
broad set of problems which affect business
and industry in the Fourth District and
which go somewhat deeper than mere
matters of the speed of business recovery.
Questions which are receiving increasing

attention revolve about the social and
economic effects of structural changes in
industry, with" automation" serving as a
catch phrase to identify some of the more
dramatic, but nonetheless real, facets of
the changes involved. An example may be
seen in the accompanying chart which
compares the changes in manufacturing
employment in the Fourth District with
corresponding changes nationally. In the
short-run aspect of the most recent business cycle, this chart depicts quite clearly
the accentuated swing, both on the downward and upward sides, which characterized
manufacturing employment in this District
during the 1960-61 changes. But that is
not all. A comparison of the position of
the two lines at the beginning and end of
the time span shown on the chart indicates
that manufacturing employment in the
District lost ground, over the five-year
interval, relative to the nation-wide trend.
In fact, although it is not shown on the
chart, manufacturing employment has declined more in this District than in the
nation since 1953, which was the peak year
for such employment
both here and
nationally.
Thus, this District shares heavily in a
problem which is found in many industrialized parts of the country, i.e., the
problem of employment opportunities for
those workers who are passed by as a
result of technical or structural changes
in industry. To some extent, both here and
elsewhere, the growth of new product opportunities and new service occupations
provides a natural market-place answer;
but the adjustments are far from prompt
or complete.

9

STATEMENT

OF

CONDITION
Dec. 31, 1961

Gold Certificate Account.
. . . . . . . . . . .
Redemption Fund for Federal Reserve Notes . . .
TOTAL GOLD CERTIFICATE
RESERVES

Dec. 31, 1960

$1,305,989,568
105,023,275
1,411,012,843

$1,357,217,756
92,223,845
1,449,441,601

35,451,160
25,741,473
1,472,205,476

31,021,730
33,051,387
1,513,514,718

1,695,000

752,000

270,758,000
144,109,000
1,694,530,000
326,098,000
2,435,495,000
2,437,190,000

249,174,000
778,386,000
1,072,356,000
218,493,000
2,318,409,000
2,319,161,000

581,471,894
8,014,335
20,259,984
$4,519,141,689

555,899,237
8,617,022
17,767,789
$4,414,959,766

$2,624,593,460

$2,574,550,235

1,301,181,974
36,664,583
24,645,000
4,025,385
1,366,516,942

1,253,849,313
37,749,426
20,116,000
6,600,563
1,318,315,302

398,044,162
5,079,275
4,394,233,839

406,097,241
2,596,988
4,301,559,766

41,635,950
83,271,900

37,800,000
75,600,000

$4,519,141,689

$4,414,959,766

$

s

Federal Reserve Notes of Other Banks .
Other Cash
.
TOTAL CASH
.
Discounts and Advances . .
U·.S. Government Securities:
Bills.
. . .
ASSETS
Certificates.
Notes ...
Bonds ...
TOTAL U.S. GOVERNMENT
SECURITIES
TOT AL LOANS AND SECURITIES
Cash Items in Process
Bank Premises . . .
Other Assets . . . .
TOTAL ASSETS

LIABILITIES

of Collection
.
.
.

Federal Reserve Notes.
. . . . . .
Deposits:
Member Bank - Reserve Accounts
U.S. Treasurer - General Account
Foreign.......
Other Deposits . . . .
TOTAL DEPOSITS
Deferred Availability Cash Items
Other Liabilities
. . . . .
TOT AL LIABILITIES

CAPITAL ACCOUNTS

Capital Paid In.
Surplus

. . . . .
.

TOTAL LIABILITIES
AND
. CAPITAL ACCOUNTS ..
Contingent Liability on Acceptances Purchased
for Foreign Correspondents . . . . . . . . .

10

11,625,000

21,826,800

OF EARNINGS

AND

EXPENSES

1960

Total Current Earnings . . . . . .
Net Expenses
...
. . . . . . .
CURRENT NET EARNINGS
Additions to Current Net Earnings:
Profit on Sales of U.S. Government Securities
(Net)
.
Transferred from Reserves for Contingencies
(Net)
.
All Other
.
TOTAL ADDITIONS
Deductions from Current Net Earnings
Net Additions

. . . . . . . . . . .

$93,899,647
13,378,348
80,521,299

209,320
840,170
817
1,050,307
569
1,049,738

Net Earnings Before Payments to U.S. Treasury

81,571,037

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

2,219,154
76,281,883

Transferred

to Surplus

$ 3,070,000

11

(as

of .January

1)

DIRECTORS
Chairman

JOSEPH

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

Chairman

JOSEPH H. THOMPSON
Chairman of the Board
The Hanna Mining Company
Cleveland, Ohio
FRANCIS H. BEAM
Chairman of the Board
The National City Bank of Cleveland
Cleveland, Ohio
AUBREY J. BROWN
Professor of
Agricultural Marketing and Head of
Department of Agricultural Economics
University of Kentucky
Lexington, Kentucky
DAVID A. MEEKER
President
The Hobart Manufacturing Company
Troy, Ohio
W. CORDES SNYDER, JR.
Chairman of the Board and President
Blaw-Knox Company
Pittsburgh, Pennsylvania
C.

N.

SUTTON
President
The Richland Trust Company
Mansfield, Ohio
EDWIN J. THOMAS
Chairman of the Board and Chief Executive Officer
The Goodyear Tire & Rubber Company
Akron, Ohio
PAUL A. WARNER
President
The Oberlin Savings Bank Company
Oberlin, Ohio
Member,

Federal Advisory Council

REUBEN B. HAYS
Chairman of the Board
The First National Bank of Cincinnati
Cincinnati, Ohio

12

OFFICERS

President
DONALD S. THOMPSON
First V ice President
W. BRADDOCK HICKMAN
Senior V ice President
ROGER R. CLOUSE
V ice President and Secretary
GEORGE H. EMDE
Cashier
EDWARD A. FINK
V ice President
CLYDE HARRELL
V ice President
L. MERLE HOSTETLER
V ice President
RICHARD G. JOHNSON
Vice President
FRED O. KIEL
V ice President
MARTIN MORRISON
V ice President
JOHN E. ORIN
Vice President
PAUL C. STETZELBERGER
Vice President
ELFER B. MILLER
General Auditor
PHILLIP B. DIDHAM
Assistant V ice President
ELMER F. FRICEK
Assistant V ice President
HARRY W. HUNING
Assistant Vice President
JOSEPH M. MILLER
Assistant V ice President
PAUL BREIDENBACH
Counsel
ADDISON T. CUTLER
Special Economist
GEORGE T. QUAST
Chief Examiner
CHARLES E. CRAWFORD
Assistant Cashier
ANNE J. ERSTE
Assistant Cashier
R. JOSEPH GINNANE
Assistant Cashier
ROBERT G. HOOVER
Assistant Cashier
JOHN J. Hoy
Assistant Cashier
HARMEN B. FLINKERS
Assistant Secretary
ALVAH R. MILLS
Assistant General Auditor
WILBUR

D.

FULTON

13

DIRECTORS

OFFICERS
JOHN

A.

PAUL H.

Cashier

SCHMIDT

Assistant Cashier

DORN

CHARLES E.

Assistant Cashier

HOUPT

Assistant Cashier

FRED S. KELLY
Roy

J.

Assistant Cashier

STEINBRINK

Pittsburgh

Chairman

WILLIAM A. STEELE
Chairman of the Board and President
Wheeling Steel Corporation
Wheeling, West Virginia
G. L. BACH
School of Industrial
Administration
Carnegie Institute of Technology
Pittsburgh, Pennsylvania

Dean, Graduate

F. L. BYROM
President
Koppers Company, Inc.
Pittsburgh, Pennsylvania
S. L.

DRUMM
President
West Penn Power Company
Greensburg, Pennsylvania
SAMUEL R. EVANS
President and Trust Officer
Windber Trust Company
Windber, Pennsylvania
JAMES B.

GRIEVES
President
Commonwealth Bank and
Trust Company
Pittsburgh, Pennsylvania
CHAS. J.

OFFICERS

HEIMBERGER
President
The First National Bank of Erie
Erie, Pennsylvania
Chairman

HOWARD E. WHITAKER
Chairman of the Board
The Mead Corporation
Dayton, Ohio
H.

Cincinnati

W.

GILLAUGH
President
The Third National Bank and Trust
Company of Dayton, Ohio
Dayton, Ohio
G.

CARLTON HILL
President
The Fifth Third Union Trust Company
Cincinnati, Ohio
LOGAN T.

JOHNSTON
President
Armco Steel Corporation
Middletown, Ohio

OFFICERS
RICHARD G. JOHNSON
FRED

O.

PHIL J.

KIEL
GEERS

Vice President
Vice President
Cashier

JOHN BIERMANN, JR
GEORGE W.

HURST

Assistant Cashier

WALTER H.

14

Assistant Cashier

MACDoNALD

Assistant Cashier

WALTER C. LANGSAM
President
University of Cincinnati
Cincinnati, Ohio
LEROY

MILES
President
First Security National Bank and
Trust Company of Lexington
Lexington, Kentucky
BARNEY

M.

A.

TUCKER
Manager
American Agricultural Chemical Co.
London, Kentucky

JOHN W. KOSSIN, vice president of the Federal Reserve Bank of Cleveland in
charge of its Pittsburgh Branch, died on September 6, 1961.
Mr. Kossin assumed the top managerial post of the Pittsburgh Branch in
January 1943. During the ensuing period of nearly two decades he brought
an ususual set of talents to the performance of his executive tasks. The reach of
John Kossin's personal acquaintanceship with bankers and businessmen of
western Pennsylvania and neighboring parts of West Virginia gave a personalized
note to his fulfillment of the rather rigorous requirements of a central banking
career. His combination of vigor, initiative and friendliness served as qualities
which complemented an unyielding integrity at the center of his character.
Mr. Kossin was, indeed, a career man in the System. He joined the Federal
Reserve Bank of Cleveland at the head office as a clerk in its check collection
department in November, 1918. He then progressed steadily to assistant manager
of check collection, manager of personnel, and assistant cashier. In 1942 he
was made cashier of the Pittsburgh Branch and one year later became the executive
head of the Branch, which by that time had become one of the largest branches
in the System.

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ELMER F. FRICEK,

Assistant V ice President

January 1, 1961
FRED O. KIEL,

V ice President

March 1, 1961

Promotions

JOHN E.

ORIN,

Vice President

July 1, 1961

R.

JOSEPH GINNANE,

Assistant Cashier

January 1, 1962

Retirement

CHARLES J. BOLTHOUSE,

Assistant Cashier

December 1, 1961

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