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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
occurred
composition
of
income
and
expenses,
1953. The gain
accounted
in demand
for only one-fifth
of the increase in total
deposits.
a result of this modest growth,
in the
ratio of demand
sources
and
end of
deposits
impor-
and uses of funds, in the character of
structure of District banking.
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.
As indicated
Resources.
and
in Table I,
bank
for
funds
$1.3
from
constituted
1963,
this
sources, which
more than
$13.4 bil-
or by slightly
50 percent,
in the
1953-
sources during
of
ber banks increased from
billion,
category
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
earning
assets
assets
in
the
system by the
banks to ex-
pronounced
in
relation
1953-63
shift
to
period.
enced
asset
during
the period.
content
deposit
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
of
the funds
uals, corporations
of
individ-
and state and local
In contrast, the growth
was relatively
1953-63 period.
demand
billion,
deposits
~
to
and higher-yielding
The accompanying
chart
at a faster
rate
.....?
indicates
assets inthan
total
deposits in the 1953-63 period-nearly
governments.
deposits
banks
that the volume of earning
creased
-.!
practices
A larger
in time deposits resulted mainly from
proportion
The
also influ-
management
prompted
total
in the composition
of sources of bank funds
in funds
certificates
one-
pand total assets as well as increase
all sources. The sharp increase
time
re-
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
At the end
about
to $20.3
all
or
the decade under review.
total resources of Fourth District memlion
billion,
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
/ /
./
V
EARNING
1
A
1
I
ASSETS
1
increase
, 55
, 57
' 59
'61
, 63
centered entirely
77 percent in 1953
and
to 84 percent in 1963.
That the composition
of total earn-
ing assets changed
markedly
vealed
that
in the
increased
accounting
the
fact
for
by
nearly
expansion
increase
in total
120 percent,
duced slightly.
of
with
earning
as-
heavy
emphasis
was
higher
yielding
placed
real
was
rate of
with
were
towards
in invest-
increasing
on earning
Changes
noticeable
estate
of
securities were re-
the
assets.
in the compo-
sition of assets and liabilities
on ac-
ex-
Thus, as was the case
return
Earnings.
volume,
securities.
holdings
loans, the emphasis
ments
was
by 270 percent, holdings
four-fifths
loan
quiring
government
U. S. Government
rose by only
portfolios
in holdings of state
municipal
panded
out-
24 percent (see Table I). Along
the
investment
local
While
is re-
loans
in total
investments
of
small increase in the
size
rose from
sets, while
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
Dec. 20, 1963
Millions
Percent
of dollars
of total
4,404
5,927
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.
revenues of mem-
Call dates:
Dec. 31, 1953
Millions
Percent
of dollars
of total
Liabilities
Demand Deposits.
Time Deposits
Other Liabilities and
Capital Accounts
4
The relatively
in the
which
standing
, 53
is found
ratio of earn ing assets to total assets,
I
""
similar
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
Total
39
103
79
.
Net Operating
Earnings.
by
131 percent, reaching a record high
ing volume
operating
Income
in 1963 (see Table
from
counted for
loans,
about
gain
which
in-
nearly
160 percent,
ac-
1953, with
two-thirds
in revenue.
--
--
$144
$241
of the
In addition,
$603
crease in interest expense on a grow-
of $844 million
creased by nearly
247
212
144
$221
ber banks expanded considerably,
total
--
$365
Interest Payments • • • • . • . •
Officer and Employee Compensation
Other.
II).
510
234
100
--
Total ..
Operating
1963
Millions
of dollars
of
173 percent
nearly
$382 million
larger
time
expenses
deposits.
Total
in
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
gain
As in the case of
the average
vestment
accounting
one-third
revenues.
and
sources doubled
weighted
portfolios
yield
the
in 1963). Reflecting this trend, interest
in
expense accounted for 41 percent of
loans,
on
rise in the aver-
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
components of the resource base.
The Fourth Federal Reserve District,
Lake Erie. Near
teau
boundary
Cleveland
the pla-
turns south,
passing
through
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
endowment of that general area.
The landscape
trict
varies
what
from
Ugliness
where
the
land
and denuded
ploitation
Water
Kentucky, and Tennessee.
In western Ohio, which
ginning
of the Corn Belt, the land is
relatively
fiat. Glaciers in this area at
one time
extended
south as far
over which they passed and mixing
if some-
agricultural
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
practical,
matic conditions in the Fourth District
from
is the be-
the Ohio River, smoothing the region
of great scenic beauty.
is also
lies in the Cumof West Virginia,
of the Fourth Dis-
monotonous,
to landforms
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,
Associate
ography,
Western
Donald
A.
lachian
Regional
L. Hunker,
ography,
William
Kentucky.
and
other
Federal
Lucile
to
of
Professor
Reserve
President's
AppaHenry
Associate
of Ge-
Professor
Ohio
State
University;
Associate
Geography,
University
Responsibility
for
errors
Reserve
Ce-
University;
Commission;
A. Withington,
of
fessor
is made
Crane,
The
of
acknowledgment
remains
Bank
Proof
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
serving
influences.
averages
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
is classified
tion".
Of the 39 million
land in the Fourth Dis-
trict, 29 million
acres, or 73 percent,
as "suitable
In comparison,
all agricultural
for cultiva-
56 percent
temperature,
twenty
times and above
for
of subzero weather
is possible.
the
of the Fourth
most part,
weather
currents
land, as distinct
influences
of air
over
seasons
northern
portion
that
the reacross
the tempering
currents
large
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,
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
moving
from
varies
District. The longest and the shortest
season.
conditions
sult
season, or frost-free
changes
season to
occur are largely
moved
lOO°F. once
land in the U. S. is so
occasionally
air
a
90° F.
two to four days
from
The extreme
in
move above
or twice; in winter,
The climate
moderately
thermometer
year will
period,
of
the
typical
The growing
Climate.
District,
state with respect to
of
classified.
8
latitude
both topogra-
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
condensation
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.
rainfall.
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
23 percent of the water
Underground
winds
pick
up
moisture
winter
and
heat
amount
can
supply
be
in
more
fully
during
use in periods
rainy
d istri bution
Erie. As the moisture is lifted over the
water
from
boundary
and the Ohio River can
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
four
main
sources: Lake Erie,
the Ohio River, other inland
(including
reservoirs),
and
surface
The inland
most
important
rainfall.
with
soil
of data,
range
in soil
and
£rops
predominantly
NOTE, Isolines are drown
mately equal precipitation
Source
for
steep
slopes
or
through
points of opproxi·
measured
in inches.
U. S. Deportment
of Commerce
Anti-
re-use of water.
Timber
and
Resources.
Wildlife
About
35
percent of the land area
in the Fourth District is
cies of
trees vary
is the
cording
to topography,
accounting
climate,
source,
in
Areas
rocky
medium
measures also
covered
for nearly one-half of the total water
••
•
Q
relief
Erie
water
supply
if
with
by use of
pipelines.
pollution
permit
Lake
underground
surface
used
surfoce
of
streams, lakes, and
supplies.
Fourth
seasons for
of deficient
Wider
of
the
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
sources
used.
coming across Lake Huron and Lake
water
Lake
source,
supply only a small part of the total
Although
from
serves
Fourth District,
in the coolcreate
River, which
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
AVERAGE
DAYS
NUMBER
OF FROST·FREE
poplar,
District;
important
they
in
include
and
First
in Spring
_
180 days and aver
_
150·180
_
Under 150 days
species
birds,
than
de tu. U. S. Department
are
widespread
and
60
fish.
different
mammals
and
in the coal
exceptions
are
the
oil fields of northeastern
in Morrow
there are
gas deposits in central Ohio
just west of the coal fields.
A nonfuel
of cni-
mineral
found
in quan-
Altogether,
tity in the Fourth District is clay. Bet-
species of
ter grades of clay are found in east-
nearly
400
within
ern Ohio. Lower-grade
are widespread
clay deposits
throughout
the Dis-
trict.
Resources. The Fourth Dis-
Salt deposits are extensive, under-
trict is endowed with rich deposits of
lying much of the eastern half of the
both fuel
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
10
pine in
the Fourth District.
of Commerce
established
natural
kinds of birds may be found
Mineral
of
notable
County, Ohio. in addition,
wildlife
Source
fields,
short leaf or southern yellow
more
days
deposits are interspersed
the
the southern sections.
mals,
32° F. in Autumn
are
white
have
most of the oil and gas
Ohio and the new field
Wildlife
Last 31°F.
17 bill ion tons
pine in the northeastern counties and
and include a large variety
Between
Although
basswood,
beech. Softwoods
less
only
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
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
Pennsyl-
or rough topogra-
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-
to
pasture
(in-
farming)
14 percent of the land
proportions
Kentucky.
large
western Ohio and the Bluegrass Re-
devoted
area in the Fourth District, with
land accounts for only 20 percent of
area.
centers provides ac-
that used for dairy
land. For the U. S. as a whole, crop-
An especially
it
north-
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
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
0
0
o
0
0
0
0
0
a
o
0
0
o
0
0
0000C)
00000
"a 0000
"
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
the
Further development
al resources and facilities
area of the Fourth District (excluding
pected, particularly
Lake Erie) is covered by water.
lated
areas
The Fourth Dis-
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-
Other lands
Built-up
Areas
Water Areas
Source
Percent Distribution -1958
of dntc. U. S. Deportment
of Agriculture
For-
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
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
1.4 million
to public outdoor
rec-
in the Fourth District. These
recrea-
Use. According
to a report
by the U. S. Geological
Survey, the
estimated
areas.
acres devoted
reation
rec-
of developing
facilities.
Water
Lake Erie
these public
In all, there are about
water
annual
withdrawal
in states wholly
or partially
the Fourth District, exclusive
in
of that
used for water
power, totaled
gallons
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
are shown in the map on page 15.
Ohio
million
of
Many of the parks, forests, and wild-
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
parks, for-
areas are scattered
the District. The two
forests besides Cumberland
Kentucky are Wayne
14
National
whole. Lessthan 1 percent of the land
Recreation Areas.
I
in Ohio and Allegheny
est in Pennsylvania.
against one-third for the nation as a
trict has a wide variety
Posture
in
owned, as
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
million
dustrial
the table; total
purposes. As shown
table,
in the
industry
with-
systems are
consumers
in the Fourth District states, using 270
in the Fourth District states is for inaccompanying
supply
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•.
.. .. •. 4:
•. •. .. .. •.•. .. •. ......
o .•
.•...
.....
..
•. •.
..
•.
•. •. .. .. .. .. .. .. •. •.
• '" ... . .
•.
•. ..
..
.•..•.•
~
.•.•..•..•
.•.
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
water
during
when
thaws
and
many areas of the Fourth District. The
create
flood
conditions.
primary
cases, the
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.
impounded
leased during
the spring
heavy
In
flood control
streamflow.
Commercial Forest Use. Timber cut
in the Fourth District states in 1958
in the Fourth District
totaled
was valued at $32 million,
tributaries.
The Ohio
and
its
River is
both as
devices and as storage
for augmenting
Ohio
River
many
is re-
dry periods; the reser-
voirs and dams thus function
River navigation
on the
rainfall
water
centers
major
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
panying
of
in
major
conservation
programs
through
has
in the
been
Fourth
flood
widely
District
for
many years. As shown in an accommap,
reservoirs
flood waters
an
and
states,
most
the
1954.
wood
with
Saw
leading
of
use.
Fourth
volume
system
Pennsylvania,
dams
control
Ohio in that order.
to
is anticipated.
Reser-
Mineral
value
of
the
second
Kentucky
District
cut,
West
In
was
state
followed
Virginia,
Production.
minerals
were
in each of the
pulpwood
important
terms
logs
product
extensive
has been built and fur-
ther construction
16
voirs detain
and
1963,
produced
in
by
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
of mineral
Fourth District, with
showed
experienced
stantial
reduction.
gained
contrast
output include those in Virginia,
production
in the
ern Kentucky, and Illinois.
coal
Crude oil production
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-
subto
share of coal
three-
District has declined
output
most
In
nearly
bituminous
in
Pennsyl-
the
a larger
making up by far the largest portion.
at $580 million.
declines
Fourth District coal areas, coal fields
that
for
District
in the
WATER
DEVELOPMENT
production
m Under Construction
o Authorized
in the Fourth
in physical
vol-
LOCKS
and
the past ten years, but,
at
$55
has increased.
crude oil output
million
in
• Completed
RESERVOIRS
west-
T Completed
Construction
'Ii' Authorized
Thus, al-
was valued
1963,
DAMS
, Under
because of a price rise, the value of
though
PROJECTS
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
over the interval.
decl ined 5 percent
stone.
In comparison,
sand and gravel, lime, and clay. Pro-
the
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
stone
of stone totaled
production
cent but that
In the past ten years,
of natural
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
minerals
over the ten-
by some 69 percent.
Of the various
produced
building.
"construction-type"
in value
for the remainder.
is
By far
Limestone is also used for
lime, fluxing
in the Fourth Dis-
trict, the most important
18
Other
stone, and cement.
Sand and gravel
District totaled
production
$66 million
in the
in 1963.
Sand and
gravel
District has fared
production
in the
better than
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
to Current
.
Net Earnings Before
51,271
13,545
26,569
26,166
27,303
18,646
91,385
72,115
Net Earnings
•
3,991
1,415
.
.
•
.
•
.
•
.
•
•
•
Payments to U. S. Treasury
Dividends
•••••••...••••.•
Payments to U. S. Treasury
Transferred
79,320,167
•
•
from Current
•
94,192,820
•
Total Additions
Net Additions.
$94,972,347
15,652,180
Net Earnings:
Profit on Sales of U. S. Government
Securities
{Net} .•••.••.•.•••.•.
Profit on Foreign Exchange Transactions {Net}.
All Other
••.•.•••••
Deductions
1963
$110,642,402
16,449,582
to Surplus
•
{Interest on F. R. Notes}
•
•
.
•
•
•
•
•
.
•
•
87,394
70,700
94,280,214
79,390,867
2,762,834
134,215,180
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
WALTER K. BAILEY
The Warner
Pittsburgh,
Pennsylvania
Chairman
of the Board
& Swasey Company
Clay Tobacco
Cleveland,
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
Chairman
of the Board and
Chief Executive
Officer
ALBERT G. CLAY
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
T. QUAST
DONALD
G. BENJAMIN
Chief Examiner
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
@FedFRASER