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annual

report

1964
FEDERAL
RESERVE

BA N K 0 F

CLEVELAND

To the Banks in the Fourth Federal

Reserve District:

We are pleased to present the Annual Report of the Federal
Reserve Bank of Cleveland for 1964.
The business and financial Iife of the Fourth Federol Reserve
District was vigorous in 1964. This, of course, reflected the fact
that the nation's economy fared well during the year. Total economic activity

in the nation

expanded

to new highs, sparked

mainly by consumer spending and business capital investment.
A large-scale tax cut early in 1964 contributed importantly to
developments

in those areas and more generally

to the forward

advance of the economy throughout the year. The number of persons employed in the nation increased and the proportion of
unemployed

receded moderately.

Commodity

prices on balance

remained stable, although upward pressures developed in some
areas as the year progressed. The deficit in the nation's balance
of payments declined slightly,
Monetary

but remained uncomfortably

pol icy was expansionary

high.

in 1964 for the fourth

successive year. A sizable increase in the reserve base of the
banking system made possible substantial increases in both bank
credit and the nation's money supply. Interest rate patterns were
mixed in 1964, with long-term interest rates virtually unchanged
and short-term rates up moderately.

In November,

the Federal

Reserve discount rate was increased in order to maintain the
alignment of interest rates between here and abroad, and to
help defend

and preserve the stability

of the dollar.

This was

necessitated by the increase in the British bank rate from 5 percent to 7 percent.
On behalf of the directors, officers, and staff, we wish to

\

I

express our sincere appreciation to the industrial, agricultural,
and financial leaders of the Fourth Federal Reserve District for
their assistance and cooperation.

I

I

_I, ~~~
1

"J

jlN.~~
Chairman

President

CONTENTS
A Decade of Fourth District
Natural

Resources of The Fourth

Comparative

Statement

Comparison

of Earnings

3

District

7

.

20

Expenses

21

of Condition
and

22

Directors
Officers

..

Bonking

23

.

Branches -

Directors and Officers

24

A DECADE OF
FOURTH DISTRICT BANKING
The resources, earnings,

and facili-

ties of Fourth District member
have grown

impressively

cent years.

Against

of this growth,
tant

changes

nature

and

banks

during

re-

the background

a number
have

of

income

and

accounted

in demand

for only one-fifth

of the increase in total

deposits.

in the

of

expenses,

1953. The gain

a result of this modest growth,
ratio of demand

sources

and uses of funds, in the character of
and

structure of District banking.

end of
deposits

impor-

occurred

composition

cent, more than the amount as of the

in

posits declined

deposits to total defrom

nearly

70 per-

cent in 1953 to 54 percent in 1963.

the

The pur-

As
the

Other

liabilities

counts (including

and

capital

borrowed

ac-

funds) ac-

pose of this article is to review briefly

counted

the highlights

of overall

20 percent, of the increase in member

less-than-total

changes

from

1953 through

growth

in the period

1963.

bank

for

funds

$1.3
from

in Table I,

this

category

sources, which

more than

$13.4 bil-

or by slightly

50 percent,

sources during
constituted

1963,

ber banks increased from
billion,

in the

1953-

one-eighth

twelfth

of

total

compared

the principal

Federal Reserve enabled

source of additions

od, increasing by nearly
The $4.4
deposits

billion

120 percent.

expansion

accounted

for

to

the periof

time

four-fifths

of

the gain in total deposits and nearly
two-thirds
from

of

the

increase

with

reone-

The large amounts of reserves suppi ied to the banking

bank funds during

bank

at the end of 1953.

63 period. Time deposits represented
member

nearly

of

about

to $20.3

all

or

At the end

total resources of Fourth District memlion

billion,

the decade under review.

As indicated

Resources.

and

system by the
banks to ex-

pand total assets as well as increase
earning
assets

assets
in

the

pronounced

in

relation

1953-63

shift

to

period.

total
The

in the composition

of sources of bank funds

in funds

enced

asset

all sources. The sharp increase

during

the period.

also influ-

management

!
-.

practices

A larger

content
deposit

in time deposits resulted mainly from

of time deposits

in the total

higher rates of interest paid on such

mix

member

deposits and the introduction

of nego-

select longer-term

tiable

of

deposit.

assets.

Both steps served to attract

a larger

time

proportion

certificates
of

the funds

uals, corporations

of

individ-

and state and local

In contrast, the growth
was relatively

1953-63 period.
demand
billion,

deposits

banks

and higher-yielding

The accompanying

chart

that the volume of earning
creased

~

to

at a faster

rate

.....?

indicates
assets inthan

total

deposits in the 1953-63 period-nearly

governments.
deposits

prompted

of demand
small

65 percent as compared

with 45 per-

in the

cent. As a result, the ratio of earning

At the end of 1963

assets to total deposits rose to about

amounted

some $1.1 billion,

to $9.6

or 13 per-

95 percent
compared

at the end of
with

84 percent

1963, as
in 1953.

3

TOTAL DEPOSITS AND
TOTAL EARNING ASSETS
Fourth

District

Member

Banks
Billions

Yearend

of 00110 rs

V

/ /

DEPOSITS

....-

,/" I--"'"

Vi"

'/

-

V

n

./

EARNING

A

similar

increase

1

I

ASSETS

centered entirely

rose from

77 percent in 1953

and

to 84 percent in 1963.
That the composition

of total earn-

ing assets changed
1

markedly

vealed

that

in the

, 57

' 59

'61

, 63

increased

accounting
the

fact

for

increase

government

duced slightly.
with

earning

as-

in total

loan

heavy

emphasis

was

quiring

higher

yielding

placed
real

was

rate of

with

towards

in invest-

increasing

on earning

Changes

noticeable

estate

the

assets.

in the compo-

sition of assets and liabilities

on ac-

of

Thus, as was the case

return

Earnings.

volume,

ex-

securities were re-

loans, the emphasis

ments

rose by only

were

by 270 percent, holdings

of

in total

was

securities.

holdings

U. S. Government

120 percent,

investments

portfolios

in holdings of state

municipal

panded

out-

24 percent (see Table I). Along
the

local

While

is re-

loans

investment

four-fifths

nearly

expansion

sets, while

by

of

small increase in the

size

I

""

, 55

The relatively

in the

ratio of earn ing assets to total assets,

standing
, 53

is found

which

/ /

V

1

had a

impact on the profitability

of Fourth District member banks dur-

and consumer loans. The increase in

ing the period under review. As indi-

these two

cated

in

growth

of operating

for

loan categories

more than

rise

in

loan

one-half
volume.

rate of growth
was

accounted

of the total
Although

the

behind

in loans to businesses

considerably

smaller

than

the

the

accompanying

pace

profits

did

revenues lagged
of

penses. The result

for

chart,

operating

was

increase

that,

exwhile

substantially,

other loan categories, the increase in

there was a gradual,

but significant

business loans

reduction in operating

profit margins.

one-fifth

accounted

for

about

of the rise in loan volume.

Table I.

ASSETS AND

Fourth District Member
Assets
Total Loans (net)
Total Investments
Total Earning Assets.
Other Assets
Total.

Total operating

LIABILITIES
Banks

Call dates:
Dec. 31, 1953
Millions
Percent
of dollars
of total
33
44

9,680
7,329

48
36

10,331

77

17,009

84

3,055
13,386

8,555
3,713

Total Deposits .

Total.

4

Dec. 20, 1963
Millions
Percent
of dollars
of total

4,404
5,927

Liabilities
Demand Deposits.
Time Deposits
Other Liabilities and
Capital Accounts

revenues of mem-

23
100%

3,244
20,253

64
28

9,650
8,155

12,268

92

17,805

1,118

8

2,448

13,386

--

100%

20,253

16
100%

48
40

--

88
12

100%

Table II.

OPERATING

REVENUES AND OPERATING

EXPENSES

Fourth District Member Banks
Operating

1953
Millions
of dollars

Revenues

Loans. • •
Investments
Other.

197
118
50

$844

Expenses
39
103
79

--

.

Net Operating

ber banks expanded considerably,

by

131 percent, reaching a record high

ing volume
operating

in 1963 (see Table

from

counted for

loans,

which

in-

nearly

160 percent,

about

gain

ac-

of

two-thirds

of the

In addition,

173 percent
nearly

$382 million
larger

time

deposits.

Total

in

expenses

1953, with

in revenue.

$241

$603

crease in interest expense on a grow-

of $844 million
Income

--

$221

Earnings.

creased by nearly

247
212
144

$144

Total

total

--

$365

Interest Payments • • • • . • . •
Officer and Employee Compensation
Other.

II).

510
234
100

--

Total ..
Operating

1963
Millions
of dollars

were

1963

higher

than

increase resulting

interest

in

55 percent of the

expense.

from

Interest

ex-

more than

six

the average annual yield on the loan

pense in

portion

of

times the amount

in 1953, due to a

without

interruption,

higher proportion

of time deposits as

earning

assets increased
from

5.38

per-

1963 was

cent in 1953 to 6.32 percent in 1963.

well as a substantial

Income

ail

age rate paid on such deposits (from

dur-

1.04 percent in 1953 to 2.86 percent

from

investments

other operating
ing

the

period,

remaining

for

of the

weighted

portfolios

yield

the

in 1963). Reflecting this trend, interest

in

gain

As in the case of

the average
vestment

accounting

one-third

revenues.

and

sources doubled

rise in the aver-

expense accounted for 41 percent of

loans,
on

in-

increased during

the decade, from 2.16 percent to 3.28

total operating
compared

with

only

18 percent ten

years earlier.
Other operating

expenses did not

rise as much as interest

and

Compensation

of

interest

rates over

the period.
Operating
faster

rate

mainly

to

than
an

did

grew

at

revenues,

unusually

sharp

a

due
in-

payments.

costs (officers and em-

ployees) doubled
expenses

grew

at

a

slower

200

Banks
Annuolly

OPERATING

REVENUES

v-V

600

400

Member

V

800

expenses rose by 82 percent.

These expenses

District

of Dollors

during the ten-year

period 1953-63, while all other operating

Fourth
Mill ions

percent, reflecting the rise in the level
structure

TOTAL 0 PERATI NG REVEN U ES AND
TOTAL OPERATING EXPENSES

expenses in 1963, as

I--

""",, 53

~
~

, 55

l/

v- i-"

I--""

1/
OPERATING

'57

.......
V

'59

1/

EXPENSES

'61

, 63

5

TOTA l BA NKIN G 0 FFI CES
Fourth

District

Member

Bonks
Number

~ore~d

TOTAL BANKING

I--- l- V

V

OFFIC~

VV

VV

-""

1,000
800

~
MAIN

1,400
1,200

BRANCHES
I-

t- V

~t-'

of Units
1,600

600

OFFICES

400
200

, 53

, 55

, 57

'59

'61

'63

rate than

operating

revenues,

A net gain

how-

of 546 offices-an

ever; and they also accounted for a

crease of 53 percent-was

declining share of total expenses.

accounted for by the addition

Growth
of

in net operating

Fourth District

member

the 1953-63 period
amounting

branches,

earnings
banks

139 banks

of 685

suspended

operations for one reason or another

in

(see below).

was substantial,

to 67 percent.

as

in-

more than

Nearly

three

times

many branch offices were in existence

However,

the somewhat larger rise in expenses

at yearend

caused the ratio of operating

ten years earl ier. About four-fifths

to operating

as

profits

1963, as compared

the addition

revenues to decline from

to

of

offices was

nearly 40 percent in 1953 to 29 per-

accounted

cent in 1963.

branches, with District banks opening

Structure.

Substantial

growth

for

branch

with

new facilities

in

by newly
at a rapid

assets and revenues of Fourth District

commodate population

member

the perimeters

banks

in 1953-63 was

ac-

number of banking offices. As shown

were

in the accompanying

through

chart, all of the

increase in total banking
by

of most metropol itan

added

by

member

operations,

expansion

banks

mergers and acquisitions.

In contrast to the trend

offices was

marked

rate to ac-

movements to

areas. The rest of the branches (140)

companied by a large increase in the

accounted for

established

the

number

in branch

of

member

in the number of branch operations.

banks (main offices) declined steadily

(The number

during

clined

of

steadily

member

banks

throughout

the

od.) Table III outlines

deperi-

principally

the highlights

tions

of these developments.

Table III.

the 1953-63 period, reflecting
the mergers and acquisi-

through

were absorbed

STRUCTURE OF COMMERCIAL BANKING

which

existing

banks

into other operations.

1953-1963

Fourth District Member Banks
TOTAL BANKING
Yearend,

OFFICES
Yearend,

1953

Number of Member Banks
Branches.
. . . •

1,027

Total Offices.

1963

Number of Member Banks
Branches.
• . . .

652
375

Total Offices.

CHANGES IN NUMBER OF BANKING

513
1,060

1,573

. . .

OFFICES DURING PERIOD

Member Banks
. . . . . . • . • .
Total Branches
•.•.•.•.•.
Newly established Branches •
Established by Merger*

-139
• +685
+545
140

+

Total

* Includes

6

net

+546
increase

in branches

due

to mergers,

consolidations,

acquisitions,

conversions,

and

withdrawals.

NATURAL

RESOURCES
OF THE FOURTH

Few areas of the world
combination

of

more advantageous
tion

and

possess a

natural

resources

to human habita-

utilization

than

the

mid-

DISTRICT

of the land area in the United States,
display

much geological

The eastern terrain

diversity.
of the Fourth

District consists of the steep slopes of

western portion of the United States.

the Appalachian

Plateau

Productive soils, a climate

gionally

Allegheny

favorable

as the

known

re-

Plateau.

de-

On its northern boundary, the plateau

posits, forest reserves, and a system

extends part way along the shores of

to agriculture,

extensive

of fresh water

mineral

lakes and rivers un-

equaled anywhere

else are the major

Lake Erie. Near
teau

Cleveland

the pla-

turns south,

boundary

passing

through

components of the resource base.
The Fourth Federal Reserve District,

Ohio and Kentucky and con-

tinuing

into Tennessee. The southern

a geographically

diverse area encom-

limit of the plateau

passing

Ohio

berland

all

of

Pennsylvania,

West

and

parts

Virginia,

of
and

Kentucky, lies in the eastern quadrant
of the midwestern
shares fully

United States and

in the natural

resource

trict

varies

what

Ugliness
where

the

land

ploitation
Water

ginning

of the Corn Belt, the land is

relatively

fiat. Glaciers in this area at
extended

south as far

areas

present

in

places

has been ravaged

as a result of the ex-

of resources.

local soils with Canadian soils. In the
unglaciated

area south of the Ohio

River, the steeper slopes of the Appalachian

Plateau taper

Cli-

hilly.

are for the most part favorable

veloped

with

moderate

changes

season to season. Mineral

sources include

coal, oil,

re-

gas, lime-

Note:

Most of the soil in the Fourth District is of a gray-brown

for

into the Blue-

grass Region around Lexington where
the land is somewhat

resources are plentiful.

agriculture,

as

over which they passed and mixing

if some-

agricultural

matic conditions in the Fourth District

from

is the be-

the Ohio River, smoothing the region

of great scenic beauty.

and denuded

In western Ohio, which

practical,

from

is also

Kentucky, and Tennessee.

of the Fourth Dis-

monotonous,

to landforms

lies in the Cumof West Virginia,

one time

endowment of that general area.
The landscape

Mountains

mate

of

type that de-

in the humid, temperate
the

area

trees such as oak,
etc. The highly

under

deciduous

maples,

productive

cli-

birches,
loams of

stone, clay, salt, stone, and sand and

western Ohio and the Bluegrass Re-

gravel.

gion have a limestone base. Soils on

Land

Resources.

trict's 47 million

The

Fourth

Dis-

acres, or 2 percent

the hilly

section of the eastern part

of the Fourth District have a base of

Grateful

helpful

assistance

Car/son,

is made

Associate

ography,

Western

Donald

A.

lachian
L. Hunker,

William

Federal

AppaHenry
of Ge-

Professor

Ohio

State

University;

Associate

Geography,

for

Pro-

University

Responsibility

other

Ce-

President's

A. Withington,

Kentucky.
and

of

University;

Commission;

Associate
The

of

fessor

Crane,

Lucile

to

Professor
Reserve

Regional

ography,

of

acknowledgment

errors

Reserve

remains
Bank

of

technical
with

the

of Cleveland.

7

sandstones and shales.
The quality
District

48° F. to 59° F., with

of land

is better

in the Fourth

on average

ured in terms of suitability

(meas-

for culti-

vation) than in the nation as a whole,

phy and
tant

latitude

serving

influences.

averages

both topogra-

The

are

in

the

western Pennsylvania

as impor-

lowest

annual

mountains

of

while the high-

according to a study by the Soil Con-

est are in southern Kentucky. In Ohio,

servation

the· intermediate

Service.'

acres of farm

land in the Fourth Dis-

trict, 29 million
is classified
tion".

Of the 39 million

acres, or 73 percent,

as "suitable

In comparison,

for cultiva-

twenty

times and above

is possible.

the

of the Fourth

most part,

from

The extreme

weather
currents

seasons

northern

portion

influences
moved

of air

over

across

the tempering

currents

large

that

the re-

moving

from

that

bodies

of

have
water

such as Lake Erie.
The average
within

longest growing
occurs along

Water

temperature

Conservation

Needs,"

tical Bulletin 317, U. S. Department
ture, Washington,

8

D.

c.,

Fourth
in

the

of the District.

are

both

The

season of 200 days

the

lake

shore

while

the Fourth

Pennsylvania
District

In southeastern

in

section of

not on the

Kentucky,

lake.

the frost-

free period averages about 166 days.

annual

the Fourth District ranges from

and

in the

the shortest of 130 days is found
the northern

Precipitation
Fourth
parts

1 "Soil

widely

growing

conditions

sult

air

varies

District. The longest and the shortest

season.

occur are largely

land, as distinct

season, or frost-free

changes

season to

occasionally
of

lOO°F. once

of subzero weather
period,

for

a

90° F.

two to four days

The climate

moderately

in

move above

or twice; in winter,
The growing

Climate.

thermometer

year will

of

classified.

District,

the

typical

land in the U. S. is so

all agricultural

56 percent

temperature,

state with respect to

August

1962.

Statis-

of Agricul-

District,
somewhat

average

abundant

averaging
above

in
in

the
most

the national

of 30 inches per year. This

is an important
ability

is

of

water

factor
for

in the availindustrial

and

public use as well as for agriculture.
Topography
rainfall.

has much to do with

Higher regions of the District

receive relatively
air

more rain as humid

masses are forced

higher ground,
ing

and

to rise over

resulting

used. The Ohio

parts of all four of the states of the
ranks as the second

most important

source of water.

Erie, the third most important
contributes

that

used in Ohio.

create

rainfall.

serves

Fourth District,

in the cool-

condensation

River, which

Lake

source,

23 percent of the water
Underground

sources

supply only a small part of the total

Although
District

all portions of the Fourth

have

some snowfall

winter, the northeastern

in the

portion aver-

ages 60 inches per year, well

in ex-

cess of other parts. Northerly
winds

pick

up

moisture

winter

and

heat

amount

used.
can

supply
be

in

more

the

fully

Fourth
used

needed. Water can be impounded
reservoirs

Areas with soil ond surface relief
predominantly
very favorable
for trOpS

••
•

Areas

The water
District

MAJOR SURFACE RElIEF AREAS AND
AVERAGE ANNUAL PRECIPITATION

during

use in periods

rainy

Wider

d istri bution

Erie. As the moisture is lifted over the

water

from

boundary

in

seasons for

of deficient

coming across Lake Huron and Lake

if

rainfall.

surfoce

Areas
rocky

with

Q

relief

with
soil

of data,

for

range

in soil

and

£rops

predominantly

NOTE, Isolines are drown
mately equal precipitation
Source

medium

steep

slopes

or

through
points of opproxi·
measured
in inches.

U. S. Deportment

of Commerce

and the Ohio River can

of

the

Appalachian

Pla-

teau, a short distance from the lake,

be obtained

it condenses and falls as snow.

longer

Water

Resources. Water

resources

of the Fourth District are among the
best in the nation. Water is available
from

four

main

sources: Lake Erie,

the Ohio River, other inland
water

(including

reservoirs),

surface

re-use of water.

Timber

and

Resources.

Wildlife

About

35

percent of the land area

streams, lakes, and

in the Fourth District is

underground

water

covered

trees vary

is the

cording

to topography,

accounting

climate,

supplies.
most

Anti-

measures also

cies of

and

The inland

Erie

by use of

pipelines.

pollution
permit

Lake

of

surface

important

supply

source,

for nearly one-half of the total water

by forest. Spe-

and

hardwoods

soil,

acbut

predomi-

48

9

,
nate. Chief among hardwoods is oak;

parison,

occurring to a lesser extent are ash,

been mined to date.

walnut,

maple,

hickory,

and

somewhat
Fourth

poplar,

District;

important
they

Although

basswood,

deposits are interspersed
fields,

white

notable

established

NUMBER

OF FROST·FREE

County, Ohio. in addition,

Wildlife

and

Last 31°F.

First

in Spring

mals,

32° F. in Autumn

_

species

_

150·180

_

birds,

more

180 days and aver

Under 150 days

than

wildlife
days

pine in

natural

are

widespread

and include a large variety
Between

are

and
60

there are

gas deposits in central Ohio

just west of the coal fields.
A nonfuel

of cni-

mineral

found

in quan-

and

tity in the Fourth District is clay. Bet-

species of

ter grades of clay are found in east-

nearly

kinds of birds may be found

400

within

ern Ohio. Lower-grade
are widespread

clay deposits

throughout

the Dis-

trict.

the Fourth District.
Mineral

in Morrow

Altogether,

fish.

different

mammals

the

oil fields of northeastern

Ohio and the new field

short leaf or southern yellow

AVERAGE
DAYS

in the coal

exceptions

pine in the northeastern counties and
the southern sections.

have

most of the oil and gas

the

in

include

17 bill ion tons

are

beech. Softwoods

less

only

Resources. The Fourth Dis-

Salt deposits are extensive, under-

of

de tu. U. S. Department

of Commerce

trict is endowed with rich deposits of

lying much of the eastern half of the

both fuel

Source

Fourth District.

can

and

nonfuel

be seen on the

minerals,

as

accompanying

Much of western Ohio and eastern

map. The richest and best known of

Kentucky

these is bituminous coal. A large part

mite deposits. Limestone is also pres-

-about

ent throughout

32 thousand

of the Appalachian

square

miles-

coal field, which

is the largest in the world,

lies in the

portant
in

have

limestone

dolo-

Ohio's coal fields. im-

gypsum

Ohio,

and

deposits

particularly

in

are found
Sandusky

Fourth District. Despite heavy mining

County, where much of the District's

in the

production

still

past,

remain.

huge suppl ies of
It is estimated

that

coal
bi-

Ohio's

is mined.
deposits

of

sandstone

are

tuminous coal reserves in the District

10

extensive, with the state leading the

total nearly

nation

150 bill ion tons. in corn-

in production.

Beds of sand-

stone are found
well

as under

near Lake Erie, as
much of the eastern

half of Ohio. Sand and gravel

occur

known

for

oughbred

the
dairy

in various parts of the Fourth District

on throughout
tends

Other minerals found in the Fourth
District, although

not in great quan-

farming

is carried

the Fourth District,

be concentrated
Ohio

vania.

Thor-

and

The rolling

in

western

it

north-

Pennsyl-

or rough topogra-

phy of those sections is not a barrier

tity, include peat and gem stones.
Land Use. Agricultural

to

eastern

of

horses.

Although

but particularly

in Ohio.

production

use of land

to dairy

farming;

the location

near

in the Fourth District for outshadows

large population

any other use. About 39 million acres

cess to a ready market for mil k.

-more

than four-fifths

of the District's

47 million acres-is

in farms; approxi-

mately

acres, or 35 per-

16 million

cent of land

in the District

is crop-

Acreage
cluding

accounts for
largest
and

the land

acreage

land
gion

proportion

of

about

is used in crop

production

in

District;

ously

of

Kentucky

noted,

and climate
agricultural
which

the

soils,

are highly

as previ-

topography,
conducive to

production. Western Ohio,

lies within

predominantly
livestock

where,

the Corn

Belt, is

a corn, soybean, and

producing

area.

Burley to-

pasture

(in-

farming)

14 percent of the land

proportions

Kentucky.

large

western Ohio and the Bluegrass Re-

to

area in the Fourth District, with

land accounts for only 20 percent of
area.

devoted

that used for dairy

land. For the U. S. as a whole, crop-

An especially

centers provides ac-

the

in West Virginia

Forest and woodland

totals

15 million

one-third

acres, or

of the entire

more than

half

Fourth

of the land

in the Fourth District portions of Kentucky and West Virginia

is in forest

and woodland.
Seven percent of the land

in the

Fourth District is in urban and built-up
areas, a much larger proportion
the 2 percent
whole.

for

the

The ten largest

nation

than
as a

cities in the

bacco is the major crop in the Blue-

District account for almost half of the

grass Region, with

700 thousand

this section also

acres in this category.

11

FOURTH
DISTRICT
MINERAL
RESOURCES

0

0

o
o

0

0

0

0

0

0

o

0
0

o

0

0

0

0

a

0

0
0

o

0

0

0000C)
00000

" 0000
a
"

o

00

0

00

°00000°0

o

0 0 0

0

0 cO 0

0

00°000°

o

°°
0

0

0 0
00,.

00"
00

e

K

E

N

T
c

,

o

r

C 0

o'-/"-,'.,.'v·"

A

N

o

Coal
Oil
Gas

o

Limestoneand Dolomite

~

Sand and Gravel

~

Sandstone

o
o

Salt
Clay

Sources of data: State and U. S. Geological
Surveys

LAND

UTIlIZATION

Forest
and
Woodland

~ ~
__ /1
Water Areas ~

I

Federal
lands

Urban and
Built-up Areas

Only

2

percent

of

land

Fourth District is federally

in

the

owned, as

in Ohio and Allegheny

against one-third for the nation as a

Further development

whole. Lessthan 1 percent of the land

al resources and facilities

area of the Fourth District (excluding

pected, particularly

Lake Erie) is covered by water.

lated

Recreation Areas.

The Fourth Dis-

trict has a wide variety
areas
Posture

National

suitable

of recreation

to outdoor

activities.

Such areas range in size from
berland

National

Cum-

Forest in Kentucky,

which consists of nearly one-half mil-

For-

est in Pennsylvania.

Fourth

District.

section

That

to the

may be ex-

in the less popu-

southeastern

proximity

of recreation-

of

area's

heavily

the

relative

populated

East encourages such development.
this connection,

the proposed

Federal Appalachian

In

State-

Region Program,

which includes nearly one-half of the

Iion acres, to roadside parks that offer

I

Other lands
Built-up

Areas

Water Areas
Source

Percent Distribution -1958
of dntc. U. S. Deportment
of Agriculture

Fourth District's counties, emphasizes

only a picnic table. Much of the Dis-

the importance

trict's

tional

130 thousand

water

and

shoreline
reation

acres of inland

some of

lie within

the

areas.

acres devoted

Use. According

to a report

by the U. S. Geological

Survey, the

estimated

In all, there are about
reation

rec-

1.4 million

to public outdoor

rec-

in the Fourth District. These

recrea-

facilities.

Water

Lake Erie

these public

of developing

water

annual

withdrawal

in states wholly

or partially

the Fourth District, exclusive

in

of that

used for water

power, totaled
gallons

are shown in the map on page 15.

32,000
1960,

life areas are clustered in south-cen-

total

tral

as a whole." (Data are not available

and

most are owned

by

or

about

water

per

about

Many of the parks, forests, and wildOhio

million

of

day

12 percent

withdrawn

of

in
the

in the nation

the State rather than the Federal gov-

by county and thus cannot be derived

ernment. Twelve national

for the Fourth District.)

ests, and wildlife
throughout
tional

areas are scattered

the District. The two

forests besides Cumberland

Kentucky are Wayne

14

parks, for-

National

nain

Forest

2

MacKichan,

mated

K. A"

and

Kammerer,

J. C., "Esti-

Use of Water in the United States, 1960,"

Geological

Survey

Circular

456,

ment of the Interior, Washington,

U. S. DepartD. C,; 1961.

Water withdrawn

is that which

is

removed from the ground or diverted

or lakes, rather than being pumped
out of the ground.

from streams or lakes and used, but
returned

to the ground,

stream,

lake. The largest withdrawal

or

of water

Public water

supply

million

dustrial

the table; total

purposes. As shown
table,

in the

industry

with-

consumers

in the Fourth District states, using 270

in the Fourth District states is for inaccompanying

systems are

the second largest water
gallons

per day as shown in
withdrawal

systems, however,

of these

was estimated

at

drew 31,300 million gallons per day

2,650

in 1960. Among the withdrawal

1960. Most water for public systems

of water in industrial
electric

power

processes, fuel-

generation

the largest; two-thirds
drawn

ranks

as

of water with-

is drawn

noted

of electricity.

in the
water

table,

As can be

however,

withdrawn

for

very

this pur-

pose is actually consumed.
Water

derground

which

is

water

1960.

not returned.

small

products;

incorporated

it is not, therefore,

into
avail-

able for re-use. Industry was also the
major

consumer

Fourth

District

of

water

states

in

in

the

1960, con-

streams,

in

suming 455 million
used by

gallons

in the table.
industry

surface water

per day

Most water

is obtained

supplies,

from

i.e., streams

•

consumed

in rural

Nafianal

Park,

.• State
•

Source

by

livestock

day

gallons

consumed

Irrigation
factor

in

in

in

is

a

Fourth

District states, with golf
course irrigation
suming

the

amount,
crop

con-

largest

fo II owed

irrigation

by
and

greenhouse and nursery
irrigation.

RECREATION

Faresf,

Park, Forest,

County

o local

areas.

and Wildlife

AREAS

Services

and Wildlife

Services

Recreation

Resources

Pork Services
Park AgenCies

of data: Outdoor
Review

Commission

.

•.• ...It...... :
.•.....
•.
•. •. •.•.
•....... .•. .• .•. f•. •. .. .. •. .. •. .•... o..... .• .. .. .. •. 4:
•. •.
..
•. .. .. .. .. •. •. •.
•.
•.
.. .. •.
• '" ... . .
•. ..
..

.•..•.•

~

.•.•..•..•

.•.

Itt.

•.

:

At. ~

t "<,

0

•.•.

.. .. .. •. .... •.
•
.. .. ..•. .. .. .. •.•... •...•. ••.
•.
•. ..
.•..•. ...• ......~....•..••....• "' .....

•...

0

0

.• 6."
.•

as shown

PUBLIC OUTDOOR

or

sources.

the 236 million

from streams or lakes and used, but
is

lakes,

day

Domestic use and water
consumed

per

In effect it is water that

per

Ground water is the primary source
of

removed from the ground or diverted

or

from

shared about equally

consumed is that

evaporates

gallons

rivers, with only 15 percent from un-

by all industry is used in the

production
little

uses

million

•
.•.

.•.•..•.•.•.••
.•

•.
.......

JiJ.1iI..

Ate

.•.

...

...•... :
.• .•.....•..•. ~
:

...

•.•

.&

A;

"-

.•.•..•

One of the major resource problems

in the

15

Table I
WATER

USE
Fourth District States
Withdrawn
(mgd)

Industry
Electric power

generation

Public supplies
Rural use
Irrigation
Water power

[rnqd]
455
37
270
236
10

2,650
562
11
123,780

States

Withdrawn
(mgd)

Consumed

31,300
20,483

(fuel)

United

Consumed
(mgd)

140,000
102,200
20,600
3,600
84,000
2,000,000

-

3,200
224
3,470
2,800
52,000'

---

mgd - million gallons per day
a) an additional 23,000 mgd is lost in conveyance

1960
Source of data: U.S. Geological Survey

Fourth

District

Pollution

is

prevents

water

pollution.

re-use of water

in

voirs detain

water

during

when

thaws

and

many areas of the Fourth District. The

create

flood

conditions.

primary

cases, the

the spring

sources of pollution

are do-

mestic sewage and industrial

wastes.

The Fourth District is well supplied
with

navigable

waters,

including

Lake Erie and the St. Lawrence Seaway, that connect with other parts of
the

U. S., Canada,

and

the ocean.

heavy

impounded

leased during

In

streamflow.

Commercial Forest Use. Timber cut
in the Fourth District states in 1958

in the Fourth District

totaled

Ohio

was valued at $32 million,

major

tributaries.

The Ohio

and

its

River is

both as

devices and as storage

for augmenting

River navigation

River

is re-

dry periods; the reser-

voirs and dams thus function
flood control

many

water

centers

on the

rainfall

410

million

figures available.

cubic

feet

and

the latest

The volume of tim-

a Iink to the south through the Missis-

ber cut in 1958 was one-fourth

less

sippi River and ultimately

than

the

to the Gulf

of Mexico.
Water
control
practiced

conservation
programs

through

has

in the

been

Fourth

flood
widely

District

for

many years. As shown in an accompanying
of

map,

reservoirs

flood waters

an
and

states,
most
the

1954.

wood
with

Saw

leading
of

use.

Fourth

volume

system

Pennsylvania,

dams

control

were

in each of the

pulpwood

important

terms

logs

product

extensive

the

second

Kentucky
District

cut,

is anticipated.

Reser-

Mineral
value

of

West

was

state

followed
Virginia,

in
by

Ohio in that order.

to

has been built and fur-

ther construction

16

in

major

Production.
minerals

In

and

1963,

produced

the

in the

Fourth District totaled
lion, which
of

the

shown

nation's
in

the value

nearly

$1 bil-

was 5 percent by value
the

mineral

output.

accompanying

of mineral

As

table,

production

in-

suit, a declining

share of the nation's

coal production is mined in the Fourth
District - 29 percent in 1963 in contrast to 33 percent in 1954. Although
all states wholly

or partia!ly

creased 6 percent from a year earlier,

Fourth

with all minerals except oil and gas

shares of the nation's total,

recording

vania

year-to-year

the value of mineral
was

15 percent

gains.
output

above

that

Also,

in 1963
of

ten

years earlier.
Fuels
fourths

account

showed

experienced

stantial

Fourth District, with

gained

most

In

contrast

a larger

subto

share of coal

nearly

three-

output include those in Virginia,

in the

WATER

DEVELOPMENT

bituminous

coal

Crude oil production
District has declined

In 1963, coal production

ume during

was valued

Electric power

utili-

ties were the largest coal users.
In recent years, the increase in coal
in the Fourth District has not

matched that in the nation. As a re-

west-

m Under Construction
o Authorized

in the Fourth

in physical

vol-

LOCKS

and

the past ten years, but,

production
at

$55

has increased.

crude oil output
million

in

T Completed
Construction

'Ii' Authorized

Thus, al-

was valued

1963,

DAMS

, Under

because of a price rise, the value of
though

PROJECTS
• Completed

RESERVOIRS

ern Kentucky, and Illinois.

making up by far the largest portion.

output

the

reduction.

in

Pennsyl-

production

of mineral

at $580 million.

declines

Fourth District coal areas, coal fields
that

for

District

in the

1964
Source

of dot"

7 percent

higher than in 1954, the number of

17

Table II
MINERAL

PRODUCTION

-

Fourth District

Production

1963
(mil. of dol.)
Fuels
Coal
Oil
Gas.
Nonfuels
Stone
Sand & Gravel
Lime.
Salt.
Clay
Total Mineral
Producfion"

Percent of Total
U.S. Production

Percent Change From:

1962

1954

+ 6%
0
1

+
+

-

80
66
46
30
23

+ 8
+14
+ 5
+ 3
+12

940

+ 6

$580
55"
51 h

1963

2%
7
23

1954

29%
1
2

33%
1
8

+ 31
+ 79
+ 46
+140
+ 20

8
8
23
16
12

10
7
31
12
15

+ 15

5

6

a Includes entire state of Kentucky
b Includes entire states of Kentucky and Pennsylvania
C

Includes production of gem stones, peat, abrasive stone, and gypsum

Source of data: U.S. Deportment of the Interior

barrels

produced

decl ined 5 percent

stone.

In comparison,

over the interval.

sand and gravel, lime, and clay. Pro-

the

Other

such minerals
-_.

include

--

$80 million

value of production

in the U. S. in-

duction

creased 24

in the ten-year

in 1963. In the past ten years, U. S.

period

percent

while

volume

produced

in-

creased 19 percent.

has declined
currently

production

gas in the Fourth District
due to reduced output

in Pennsylvania.

Fourth District states

produce only

U. S. natural

production

cent but that

In the past ten years,
of natural

stone

of stone totaled

2 percent of

gas output,

compared

increased

77

of the Fourth

per-

District

moved up by only 31 percent.
Ohio and Pennsylvania are the nation's

leading

Nearly

producers

four-fifths

of

stone.

of the stone pro-

duced in the District is limestone, with
sandstone, slate, and calcareous marl

with 8 percent in 1954. U. S. produc-

accounting

tion

the major use of limestone is for road

increased sharply

year interval

by some 69 percent.

Of the various
minerals

over the ten-

produced

in value

is

By far

Limestone is also used for

lime, fluxing

in the Fourth Dis-

trict, the most important

18

building.

"construction-type"

for the remainder.

stone, and cement.

Sand and gravel
District totaled

production

$66 million

in the

in 1963.

Sand and

gravel

production
better than

District has fared

in the
in the

in the

Fourth

District.

Most clay

is

used for heavy clay products, cement,

U. S. as a whole. Since 1954, Fourth

and refractories.

District

nation in value of clay production but

production

has increased 79

percent as compared with 63 percent

some clay

for the nation. Kentucky and Pennsyl-

tucky

vania produce some sand and gravel,

Fourth

but Ohio

amounted

the

is the largest

District,

nation

ranking

(behind

producer

second

California)

value of sand and gravel

in

in the
in

the

produced.

Ohio also leads the

is also produced

and

in Ken-

Pennsylvania.

District
to

clay

$23

In

total,

production

million

in

1963.

Like some other minerals, during
past ten years,

the

the Fourth District's

share of clay production

has slipped:

Primary uses of sand and gravel are

in 1963 the District accounted for 12

for

percent of the nation's

building

and

highway

construc-

tion.

which compared with

Virtually

all

Fourth District

of

the

lime

is produced

in

the

in Ohio,

clay

output,

15 percent ten

years earl ier.
Another

important

mineral

in the

which leads the nation in production.

Fourth District is salt, the production

The largest use of lime is for chemi-

of which was valued at $30 million in

cal and other industrial

1963. Salt is used principally

lowed

by

agricultural

refractory,.

purposes, folbuilding,

uses. As shown

and
in the

for ice

control and for chemical applications.
Salt production

in the District in 1963

table, the volume of lime production

contributed

a larger share of the na-

in the District in 1963 was $46 mil-

tion's total

salt output than was the

lion. Again,

case

nation
Ohio,

since production

has increased faster
the

Fourth

District's

in the

ten

years

earl ier,

that

than

In

period,

share

of

percent increase in salt output, almost

the

District

showed

lime output has declined from 31 per-

double

cent in 1954 to 23 percent in 1963.

the Fourth District's primary

Clay is also an important

over

product

the gain

nationally.

a

140-

Ohio

is

salt pro-

ducer, ranking fifth among all states.

19

COMPARATIVE STATEMENT OF CONDITION

ASSETS

Dec. 31, 1964

Dec. 31, 1963

$1,146,855,209
137,794,660

$1,072,428,053
120,891,715

1,284,649,869

1,193,319,768

47,080,029
10,554,686

31,391,715
10,938,681

. . .

1,342,284,584

1,235,650,164

Discounts and Advances . .
U. S. Government Securities:
Bills . . .
Certificates
Notes ..
Bonds ..

22,730,000

8,701,000

505,161,000
-02,105,047,000
440,816,000

343,270,000
585,699,000
1,469,507,000
385,044,000

Total U. S. Government Securities

3,051,024,000

2,783,520,000

Total loans and Securities

3,073,7 54,000

2,792,221,000

Gold Certificate Account. . . . . . . . .
Redemption Fund for Federal Reserve Notes.
Total Gold Certificate Reserves.
Federal Reserve Notes of Other Banks .
Other Cash
.
Total Cash

Cash Items in Process of Collection
Bank Premises.
. . .
Other Assets. . . . .
Total Assets.

616,036,242
5,930,897
47,990,376

509,071,091
6,427,573
34,414,996

$5,085,996,099

$4,577,784,824

$3,004,814,099

$2,811,931,560

LIABILITIES
Federal Reserve Notes
Deposits:
Member Bank - Reserve Accounts
U. S. Treosurer - General Account
Foreign
.
Other Deposits. . . . . ,

1,350,868,097
69,558,192
20,020,000
8,396,712

1,158,351,902
43,915,293
14,880,000
7,910,939

. . .

1,448,843,001

1,225,058,134

Deferred Availability Cash Items
Other liabilities . . . .

481,765,168
56,392,031
4,991,814,299

399,373,828
6,738,252
4,443,101,774

47,090,900
47,090,900

44,894,350
89,788,700

Total Deposits.

Total liabilities
CAPITALACCOUNTS
Capital Paid In . . .
Surplus
.
Total liabilities and Capital Accounts
Contingent liability on Acceptances Purchased
for Foreign Correspondents
. . . . . . .

20

$5,085,996,099
$

11,174,800

$4,577,784,824
$

8,546,700

COMPARISON

OF EARNINGS AND

EXPENSES

1964
Total Current Earnings
Net Expenses
•••..
Current
Additions

•

.

Net Earnings Before

91,385

72,115

Net Earnings

•

3,991

1,415

.

.

•

.

•

.

•

.

•

•

87,394

to Surplus

•

•

•

.

•

•

•

•

•

.

•

•

79,390,867

2,762,834
134,215,180

{Interest on F. R. Notes}

70,700

94,280,214

•

Payments to U. S. Treasury

Dividends
•••••••...••••.•
Payments to U. S. Treasury
Transferred

26,166
27,303
18,646

•

•

from Current
•

51,271
13,545
26,569

•

Total Additions

Net Additions.

79,320,167

Net Earnings:

Profit on Sales of U. S. Government
Securities
{Net} .•••.••.•.•••.•.
Profit on Foreign Exchange Transactions {Net}.
All Other
••.•.•••••

Deductions

$94,972,347
15,652,180

94,192,820

•

Net Earnings

to Current

1963

$110,642,402
16,449,582

2,653,643
73,916,924

$-42,697,800

$ 2,820,300

21

DIRECTORS

(as of January

1,1965)

Chairman
JOSEPH B. HALL
The Kroger

Deputy

Former

Chairman

of the Board

Cincinnati,

T. JOHNSTON

President

Steel Corporation

Middletown,

FRANK E. AGNEW,

JR......•.......

Pittsburgh

Bank

National

The Warner

Chairman
of the Board and
Chief Executive
Officer
Pennsylvania

Chairman

of the Board

& Swasey Company

Cleveland,

ALBERT G. CLAY
Clay Tobacco

Mt. Sterling,

DAVID A. MEEKER

Findlay,

Manufacturing

National

Company

Troy, Ohio

President

Bank

Coshocton,

EDWIN J. THOMAS
The Goodyear

Member,
LElAND
The Ohio

Chairman

Tire & Rubber Company

Fecleral Aclvisory

Ohio

of the Executive and
Finance Committee
Akron,

Ohio

Council

A. STONER
National

Ohio

Chairman
of the Board and
Chief Executive
Officer

SEWARD D. SCHOOLER
Coshocton

Kentucky

President

Bank and Savings Company

The Hobart

Ohio

President

Company

RICHARD R. HOLLINGTON
The Ohio

Ohio

Pittsburgh,

WALTER K. BAILEY

22

Ohio

Chairman

LOGAN
Armco

Director,

Co

President
Bank of Columbus

Columbus,

Ohio

OFFICERS

W. BRADDOCK

(as of January 1,1965)

President

HICKMAN

First Vice President

EDWARD A. FINK
GEORGE E. BOOTH,

Vice President and Cashier

JR

Vice President and Secretary

ROGER R. CLOUSE
ELMER F. FRICEK

Vice President

CLYDE HARRELL

Vice President

JOHN

J. HOY

HARRY W.

Vice President

.............•................

Vice President

HUNING

FRED S. KElLY

Vice President

FRED O. KIEl

Vice President
Vice President and General Economist

MAURICE MANN

Vice President

CLIFFORD G. MILLER
MARTIN

MORRISON

Vice President

..........•..............

General

ElFER B. MILLER

Counsel

PAUL BREIDENBACH
ADDISON

T. CUTlER

Auditor

Assistant Vice President and Economist

PHILLIP B. DIDHAM

Assistant

Vice President

R. JOSEPH

Assistant

Vice President

Assistant

Vice President

Assistant

Vice President

WILLIAM

GINNANE

H. HENDRICKS

ROBERT G. HOOVER
GEORGE
DONALD

Chief Examiner

T. QUAST
G. BENJAMIN

Assistant

Cashier

ROBERT D. DUGGAN

Assistant

Cashier

ANNE

Assistant

Cashier

Assistant

Cashier

General

Auditor

J. ERSTE

THOMAS

E. ORMISTON,

JAMES H. CAMPBElL
H. MILTON

PUGH

LESTER M. SELBY

JR. .

Assistant
Assistant

Chief Examiner

Assistant Secretary

23

BRANCH

DIRECTORS AND

OFFICERS

CINCINNATI

(as of January 1,1965)

BRANCH

DIRECTORS

Chairman
WALTER C. LANGSAM, President
University of Cincinnati,
Cincinnati,
Ohio
JOHN

The Philip Carey

The National

W. HUMPHREY
President
Manufacturing
Company
Cincinnati, Ohio

JAMES B. PUGH
President
The Security Central
Portsmouth, Ohio

National

Bank of Portsmouth

BARNEY A. TUCKER
President
Burley-Belt Fertilizer Company
Lexington, Kentucky

R. STANLEY LAING
President
Cash Register Company
Dayton, Ohio

KROGER PETTENGILL
President
The First National Bank of Cincinnati
Cincinnati, Ohio

JOHN W. WOODS, JR.
President
The Third National Bank of Ashland
Ashland, Kentucky

OFFICERS
FRED O. KIEL
Vice President

WALTER
Cashier

JOSEPH W. CROWLEY
Assistant
Cashier
HOWARD
Assistant

H. MacDONALD

GEORGE W. HURST
Assistant
Cashier
E. TAYLOR
Cashier

PITTSBURGH

BRANCH

DIRECTORS

Chairman
G. L. BACH, Maurice Falk Professor of Economics and Social Science
Carnegie Institute of Technology, Pittsburgh, Pennsylvania
J. S. ARMSTRONG
President
and Trust Officer
The Grove City National Bank
Grove City, Pennsylvania
F. L. BYROM

S. L. DRUMM
President
West Penn Power Company
Greensburg,
Pennsylvania

President
Koppers Company, Inc.
Pittsburgh, Pennsylvania

EDWIN H. KEEP
President
First National Bank of Meadville
Meadville,
Pennsylvania

ROBERT DICKEY III
President
Dravo Corporation
Pittsburgh, Pennsylvania

ALFRED H. OWENS
President
The Citizens National Bank of New Castle
New Castle, Pennsylvania

OFFICERS
CLYDE HARRELL
Vice President
J. ROBERT AUFDERHEIDE
Assistant
Cashier

ROY J. STEINBRINK
Cashier
PAUL H. DORN
Assistant
Cashier

CHARLES E. HOUPT
Assistant
Cashier

24

fau rth federal reserve district

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