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To the Banks in the Fourth Federal Reserve District:
We are pleased
Bank

of Cleveland

saddened

by

November

for

1970.

the death

28,

1970.

to present

the Annual Report of the Federal

As you

know,

of W. Braddock
His

loss has

been

Reserve

the past year at the Bank was

Hickman,
deeply

president
felt

from

by the

1963

Bank

and

to
the

community.
We wish to acknowledge
areas of the Fourth

District's

the Bank in fulfilling
the employees
possible

the

dedicated

economy,

its purpose

of the Federal
Bank's

recent

successful

but

of the leaders from all
who generously

last year. Most importantly,
Bank of Cleveland,

operation.

In a sense,

helped

we are grateful
whose

to

help makes

this Annual

Report

is

to those employees.

both
years,

followed

men and women

Reserve

In the following
through

again the assistance

pictures

pages,

and story.

and the operations

the

functions

of the Bank are described

The world of finance has changed
of the Federal

Reserve Bank of Cleveland

suit. Not only has the volume of transactions

in addition,

necessitated
and increased

our

responsibilities

new equipment,
reliance

have become

reorganization

markedly

increased
more

of some functions

in

have

tremendously,

complex.

This has

and departments,

on the staff at the Bank. This Annual Report attempts

to

show the Bank as it enters the decade of the 70's.

CHAIRMAN OF THE BOARD

FIRST VICE PRESIDENT

The Bank

•

1970

In

The Federal Reserve Bank of Cleveland is one of
the twelve regional banks that make up the Federal
Reserve System. This Bank serves the entire state of
Ohio, six counties in West Virginia, 56 counties in
eastern

Kentucky,

Pennsylvania.

and

The

19 counties

Bank

has

in western

branch

offices

in

Pittsburgh and Cincinnati.
The scope of the operations of this Bank ranges
from offering services to banks and the public to
serving the people

within

services performed

the Bank. Among the

by the Bank are collecting and

clearing checks, furnishing currency for circulation,
and acting as fiscal agent, custodian, and depositary
for the U. S. Treasury and Government agencies.
Through its Bank Relations and Public Information
Departments,

the Bank fosters communication

with

commercial banks as well as the general public. The
Bank also has a supervisory responsibility over statemember banks. Many internal services, provided by
departments

such

as

Accounting,

Audit,

Legal,

Personnel, Protection, Mail, and Data Processing, are
designed to give support

to the operation

of the

entire Bank.

In order to perform all these services, the Bank
needs

a large staff

directors.

Although

of employees,
their

training

diverse, each has an important

officers,

and

and skills are

role to play to keep

the Bank working in an efficient manner. This Annual
Report was written
attempts

service functions
operations.

with these people in mind. It

to inform you about the Bank's external
as well as its internal

support

It is our hope that this Annual Report

will add to an understanding

of the purposes and

functions of the Federal Reserve Bank of Cleveland.

4.

future date. Normally, payment for these items is not
credited to the depositor's account until the Federal
Reserve Bank

receives the collected

items include matured

funds. These

bonds and coupons,

drafts

with passbooks, and acceptances, among others.

COMMUNICATIONS DEPARTMENT
Last

year

billions

of dollars were transferred

through a new, enlarged communications network
operated by the Federal Reserve System. For example,
a member bank in the Fourth District may instruct
the Bank to transfer a portion of its reserve account
to another member bank. If that bank is in another
Federal Reserve district, the Federal Reserve Bank of
Cleveland uses the System's

private wire service to

instruct the receiving Federal Reserve office to credit
the funds to the receiving member bank's reserve
account. These transfers are effected on the same day
and are frequently used by member banks with excess
reserves they want to loan overnight to other member
banks that need to increase their reserve account
balances (Federal funds transactions).

They are also

used

transfers

to

customers

make

immediate

of member

banks

funds

and to settle

for
large

noncash collections.
The three offices of the Federal Reserve Bank of
Cleveland
member

processed
banks

532,000

funds

transfers

during 1970, amounting

to

for
$750

billion.

CHECK COLLECTION DEPARTMENT
As a crucial service to the business and financial
community, as well as the general public, the Federal
Reserve System provides a nationwide

network

to

clear and collect checks.
Nearly all checks are coded with special symbols
printed in magnetic ink that permits the checks to be
processed

through

high-speed

electronic

sorting

machines such as those that are linked with this
Bank's

computer.

In 1970, the Check Collection

Departments at the main office and the Pittsburgh and
Cincinnati

branch offices handled

more than 585

million checks.
Noncash. The Bank also processes for collection
noncash items that are payable on demand or at some

5.

Coin. New coins are received from the United
States mints, credited to the Treasurer's account at
the Federal Reserve Bank, and then stored until
needed by commercial banks. Commercial banks send
their surplus coin to the Reserve Bank or branch
nearest them by armored

truck or registered mail.

Employees in the Coin Divisions at the main office
and the Pittsburgh

and Cincinnati

branches of the

CASH DEPARTMENT
The Federal

Reserve Banks help keep cash in

circulation by supplying coin and currency to banks
and by accepting their excess supplies of these items.
The Cash Department
2,700 banking
department

of this Bank serves more than

offices in the Fourth District. The

also accepts canceled food stamps from

District banks.

Cleveland Bank count and verify all incoming coin.
Returned
worn,

coins are counted

and sorted to remove

foreign, and counterfeit

operation

is performed

coins. The sorting

by employees who visually

examine the coin as it is fed through an automatic
counting machine. All usable coin is then bagged or
wrapped

6.

and stored until needed.

Although most

coins are wrapped, some shipments ofloose coins are
still made. Loose dimes, quarters, and half dollars are
shipped

in bags that

approximately

contain

$1,000

and weigh

50 pounds. During a typical day, this

division handles 10 to 15 tons of coin. In 1970, more
than 900 million coins were paid into circulation, and
963 million coins were received in deposits.
Currency. The Treasury Department
currency

to the

Federal

supplies new

Reserve Banks.

Federal

Reserve Notes, which account for almost all of the
currency presently
Bureau

being issued, are printed by the

of Engraving and Printing.

currency

is kept

in the custody

The unissued
of the Federal

Reserve Agent at each Federal Reserve Bank (the
Federal Reserve Agent is also Chairman of the Board
of Directors). New Federal Reserve Notes are entered
on the books of each Reserve Bank when the notes
are released from custody and issued. The Bank must
pledge collateral to the Treasury that is equal to the
face amount of the notes when it applies for an issue
of notes.
Before currency is returned to the Reserve Banks,
it must be pre-sorted according to the denomination
of the note. When currency is returned to the Federal
Reserve Bank of Cleveland, highly skilled and trained
employees examine the notes to remove damaged,
foreign, and counterfeit notes. An experienced sorter
can process more than 32,000 bills a day. Incoming
bills that are in good condition

can sometimes be

processed on high-speed equipment that counts bills

FISCAL AGENCY DEPARTMENT
Another

important

group

of financial

services

about three times faster than the regular sorting and

performed

counting

between the Federal Government and the public. The

packaged,
currency

operation.

Usable

currency

and held for future

is counted,

circulation.

is canceled in the Cash Department

turned over to the Fiscal Agency Department

by

the

Bank

facilitates

transactions

Unfit

Federal Reserve Banks act as banking agents for the

and

Treasury of the United States. The Federal Reserve

to be

Banks issue, redeem, and service U. S. Government
obligations, such as Savings Bonds (shown here being

verified and destroyed.

micro-filmed), maintain the records of Treasury Tax
Food
Secretary
receives

Stamps.
of

Under

Agriculture,

canceled

food

an agreement
the
stamps.

with

the

Cash Department
The

stamps

and Loan Accounts, and process deposits of Federal
taxes.

are

verified, member bank accounts are credited with the

The

Fiscal

Agency

Department

accepts

worn

proceeds, and the account of the Treasurer of the

currency from the Cash Department of the Bank, and

United States is charged. Canceled stamps are then

after the currency is verified according to Treasury

destroyed.

Department

regulations, the worn currency is burned.

7.

SECURITIES DEPARTMENT

The Securities Department

The Securities Department offers a safekeeping
service to member banks and, in some instances,

buy or sell certain securities as an agent for member

can also place orders to

banks.

other specified depositors. This service is principally
used by banks that do not have adequate protection
facilities or that have pledged securities for various
purposes.

Securities

that are held for nonmember

banks are restricted to those pledged to agencies or

VAULT CONTROL UNITS
Securities, currency, and coin are stored in the
Bank's vaults under dual control by members of the
custodies and access units. The door assembly of the
main vault at the Federal Reserve Bank of Cleveland

officials of the U. S. Government.
matured

is the largest in the world. The vault door weighs 100

coupons and securities is a service provided by this

tons and hangs from 18 foot hinges that weigh 37

Bank. There is no charge for the safekeeping services,

tons. The vault itself is almost a separate building

except for telephone, telegraph, and shipping charges.

within the Cleveland office.

The

8.

presentation

and

payment

of

addition, leading bankers and industrialists are invited
to dinner meetings and discussions of the current
business outlook in conjunction with two meetings of
the Joint Boards of Directors of the main offices and
branches.
Public information
news

releases,

speakers

activities

conducting

for

meetings

include

bank

and

preparing

tours,

providing

and

television

radio

programs, and supplying movies about the Federal
Reserve. In 1970, films from the Bank's film library
were shown 1,574 times to more than 63,000 people.
In addition,

nearly 3,000 people, including many

students, enjoyed guided tours of the Bank.
The Functional Cost Analysis program provides
member

banks

with

a systematic

analyzing their own operating
District

banks participated

banks supply income,
information

to

costs. In 1970, 83

in the program. These

expense,

concerning

approach

eleven

and balance sheet
functions

of

a

commercial bank. In return, ~ach participating bank
receives an analysis of the cost and profitability

of

each of its functions and comparative data for banks
of similar size and structure. Seminars and workshops
are

held

to

explain

the

program

to

potential

participants and to review the results of the program.

BANK RELATIONS AND
PUBLIC INFORMATION
The Bank Relations and Public Information
works

to

improve

communications

staff

between

the

Federal Reserve Bank of Cleveland and commercial
banks as well as the public. This department
promote understanding

tries to

of Federal Reserve purposes,

responsibilities, and operations.
Bank relations activities include informal visits at
each member and nonmember
These informal

bank in the District.

visits are supplemented

by several

group meetings, such as the Bankers' Day at the Fed
program

and

the

Bank

Directors-Industrialists

Round Table Meetings. Generally, a senior officer of
the Bank arranges and directs these meetings.

In

9.

BANK EXAMINATION AND
SUPERVISION DEPARTMENT

determine

if its loans are collectible; its investment

securities are sound and readily marketable without a
loss; its accounting system is accurate and adequate;

The Bank Examination
ment

examines

member

banks

Comptroller

and Supervision Depart-

the operations
in

the

of state-chartered

Fourth

District.

(The

of the Currency charters and examines

its capital is adequate and its liquidity assured; and if
it is complying with the laws and regulations that
apply to the bank.

Some staff members

department

specialize

also

applications

for

similar responsibilities for state-chartered banks.) This

formations

and

department

have

also supervises banks and others subject

to Federal Reserve Regulations.
Bank examiners review the operations

of each

and

in this

investigating

member banks.

national banks. The state banking authorities

mergers

in

acquisitions

holding
involving

company
District

Although the examiners are "on the road" almost

state-member bank in the Fourth District every year.

all of the time, a regular end-of-year

Depending on the size of the bank, 2 to 28 examiners
and assistant examiners arrive at the bank to

luncheon in the executive dining room brings them

10.

together at the main office.

seminar and

AUDIT DEPARTMENT
The Bank's internal Audit Department

is directly

responsible to the Bank's Board of Directors through
its Chairman and Audit Review Committee.

Audits

are made to verify the Bank's assets and liabilities, to
insure that proper safeguards are maintained for the
care and protection

of valuables, and to review and

LEGAL DEPARTMENT
The Legal Department
and officers

advises the Bank's directors

on the legal aspects

of the Bank's

operations, approves all contracts involving the Bank,
and conducts any litigation involving the Bank.

appraise the soundness and adequacy of established
procedures and operating controls. Thirty employees
and two officers are on the audit staff. Fifteen people
are assigned at the main office, seven at Cincinnati,
and eight at Pittsburgh.

ACCOUNTING DEPARTMENT
As in any business organization, all transactions of
the Bank and its "customers"
Accounting
activity
Bank.

Department.

is related
The

to the financial services of the

collections,

securities operations

are recorded in the

Most of this department's
cash,

fiscal agency,

all involve transactions

and

of the

Bank with its member banks, other Federal Reserve
Banks, and the Treasury. In addition, the department
supervises

member

department
and prepares

bank

reserve

also administers
cost accounting

positions.

The

departmental

budgets

information

for the

Bank.

11.

CAFETERIA

PERSONNEL DEPARTMENT
Employees

in Personnel spend all of their time

caring for people.

The department

is continually

The cafeterias at the main office and branches are

recruiting, interviewing, and hiring people to meet the

operated on a leased basis. The cafeterias are the
meeting places for lunchtime relaxation for most of

needs of the Bank. The important

the Bank's employees. They provide hot meals and

department

duties of the

also include payroll preparation,

administration,
department

and

periodic

job

salary

evaluation.

The

snacks at subsidized prices, using modern, efficient
kitchen equipment.

administers the many employee benefit

programs that the Bank provides, such as health and
life

insurance,

unemployment,

retirement,

social

security,

GENERAL SERVICES DEPARTMENT
As the name implies, this depart,?ent

and workmen's compensation.

jobs,

Bank that concentrates

addressograph,

forms

design

and

control, duplicating, and maintaining the stockroom.

MEDICAL DEPARTMENT
The Medical Department

including

does several

is another

area of the

on people. The two nurses

The Addressograph
the Bank.

unit maintains mailing lists for

and the doctor who staff the Medical Department see

Tons of paper and millions of micro-film records

an average of 35 people each day. They provide pre-

are kept in the Archives of the Bank. Current general

employment

correspondence

physical

examinations

and

annual

checkups for all employees as well as general health

records

services, such

is filed, along with departmental

started.

as flu vaccinations.

The branches

that go back to the time the Bank was

Reporting

provide the same general care.

forms, operating letters, and circulars

offering new Treasury issues are only a few of the
items that are prepared in the Forms Design and

BUILDING DEPARTMENT
There are 56 people in the Building Department at

Control

unit of the General Services Department.

the main office who maintain nearly 500,000 square

This unit also prepares camera copy for reproduction

feet of space. In order to keep the building in good

in the Bank's Duplicating unit. Offset plates are made

condition,

from the
duplicated

the Bank employs its own housekeepers,

mechanics,

carpenters,

painters,

electricians,

and

camera copy, and the materials are
on offset presses. The Duplicating unit

engineers. The Bank also has its own laundry to keep

also uses paper

employees'

uniforms

bindery equipment

throughout

the Bank. The engineers keep the air

conditioning,
systems

fresh

and

to

supply

steam, water, and emergency

running

efficiently.

People

training and skills are also employed

with

linen
power
similar

transportation

MAIL DEPARTMENT
The Mail Department

duplicating

supplies, paper, services, and

used by the Bank. This unit maintains

an inventory for the thousands of items stored in the

a
of the Bank, which is a

contract station of the U. S. Postal Service, handles
all incoming

and outgoing registered and ordinary

In addition,

dispatches
companies.

12.

folding, and

Stock Room.
The three men in the Mechanical Repair Shop have

offices.

mail.

perforating,

to prepare the printed materials.

The Purchasing unit orders all supplies, equipment,
furniture,

in the branch

cutting,

the

department

packages through

receives

a number

and

of express

full-time

typewriters,

job

of

servicing

more

than

660

calculating machines, and other general

office machines in use throughout the Bank.
The switchboard
bombarded

of the Bank is usually being

with calls. At peak hours, the four Bank

telephone operators work without a break to handle
all outgoing long distance calls and all incoming calls.

14.

l5.

PROTECTION
Guards control access to the buildings as well as to
certain

areas

in

the

buildings

where

cash and

securities are processed and stored. An important part
of every guard's job is to greet all visitors to the Bank.
The guards' assignments

are continuously

therefore,

well-acquainted

they

become

rotated;
with the

Bank> staff and buildings. Guards are on duty 24
hours a day, every day of the year.
The guards are also highly trained to meet various
emergencies. The target range, with its new automatic
target setting equipment, is used regularly to maintain
the guards'

marksmanship.

They are prepared

to

operate the Bank's emergency radio system and can
provide emergency first aid.

16.

DATA PROCESSING AND
PLANNING DEPARTMENTS
Data processing

describes in broad terms what

many Bank employees have done for more than 50
years. However, it would be impossible to process
today's routine flow of information by using methods
of 20, or even 10, years ago. Therefore, the Bank has
installed a high-capacity Burroughs 3500 computer in
the Data Processing Department to handle the rapidly
growing volume of information
more

accurately.

faster, cheaper, and

By using key-driven

similar to the typewriter,

the department

equipment
converts

data from manual form to machine form and prepares
the data for processing on the computer. Almost all
departments

of the Bank make use of the services of

Data Processing.

In general, members of the Planning Department
support Data Processing by providing systems design
and

computer

departments

programming

help

to

in the Bank. This department's

other
primary

concern is to determine, develop, justify, and install
computer

processing

operations

and

Department
potential

applications

research

functions.

also advises other

in the

Bank's

The Planning

departments

changes in their non-computer

about
oriented

operations.

17.

RESEARCH DEPARTMENT

bankers, businessmen, and students.

The research staff of the Bank keeps abreast of
developments

in regional, national, and in terna tional

economic activity to assist the president of the Bank
in his monetary policymaking role.
As a by-product of the continuing research efforts,
the

department

publishes

a monthly

Economic

Review and a weekly Economic Commentary, as well
as a number

of other regular and special studies.

Certain members of the research staff devote a large
,
part of their time to the preparation
opinions

on the probable

effects

of written

of mergers or

holding company acquisitions on banking services and
competition among Fourth District banks.
The Statistical section of the Research Department
compiles large quantities

of data on banking and

financial activity in the Fourth District. These data
are then sent to Washington for publication in the
Federal Reserve Bulletin.
Up-to-da te informa tion on current developments in
economics, finance, and banking are available in the
Research Library. The library serves the directors,
officers,

18.

and employees

of the Bank, as well as

The

Graphics

responsible

section

of

the

department

is

for visual aids for speeches and board

meetings, as well as for the charts that appear in all
publications.

CREDITS, LOANS, AND
INVESTMENTS DEPARTMENT
This department receives and processes requests for
Regulation

A

department
financial

loans

by

also keeps
condition

member

statistics

of member

banks.

The

on the current
banks

and on a

number of companies whose paper might be used as
collateral for loans. The Bank's investments in U. S.
Government

securities

are purchased

through

the

System Open Market Account (which is administered
by the Federal

Reserve Bank of New York), but

records of all transactions
this

department.

for this Bank are kept in

The department

also supervises

foreign asset controls and the voluntary foreign credit
restraint

program,

requirements

and

for securities

Regulation
credit),

G

(margin

Regulation

V

(defense loan guarantees), and Regulation Z (Truth in
Lending).

19.

BOARD OF DIRECTORS
The Boards of Directors of the Federal Reserve
Bank of Cleveland at the main office and Cincinnati
and Pittsburgh branches are made up of leaders in the
fields of banking, industry, finance, agriculture, and
education. The nine directors of the Bank are
grouped into three classes-A, B, and C-with three
members each. Class A directors are chosen by and
are representative

of the member

banks. Class B

directors are chosen by the member banks and consist
of men who are active in industry,
commerce.

agriculture, or

Class B directors may not be bankers.

Class C directors

are appointed

by the Board of

Governors of the Federal Reserve System and also
come from fields other than banking. The Chairman
of the Board of Directors is designated annually by
the Board of Governors

from among the Class C

directors.
The branches are operated under the supervision of
the branch boards of directors. These directors are
appointed by the directors of the main office as well
as by the Board of Governors.

20.

The directors

of the Bank have functions

and

responsibilities that are similar to those of a director
of any business corporation. The directors appoint all
officers of the Bank and pass on promotions
changes in official

personnel.

The directors

or
also

approve the Bank's budget and periodically check to
see how

actual

performance

compares

budget estimates. Moreover, the directors

with

the

maintain

and supervise the internal auditing system.
The directors

of a Federal

Reserve Bank have

policymaking functions, however, that are unique to
the Federal Reserve System. The Board of Directors
of each Reserve Bank establishes the discount rate,
which is the rate paid by member banks when they
borrow

from the Reserve Bank. At each of their

meetings,
current

the
report

Board

of

of activity

Directors

considers

the

at the Bank's discount

window. The clirectors also assist the president of the
Reserve Bank in his policymaking
him informed

of economic

role by keeping

developments

in their

industries.

21.

1963. He considered his role as a policymaker to be
extremely

important

and always retained

a close

interest in economic research, particularly studies of
the

IN MEMORIAM

system,

cycles, and statistical
President

W. Braddock Hickman
April 20, 1911-November

banking

Nixon

financial

markets,

techniques.

appointed

business

In August 1970,

him

to the national

Commission on Federal Statistics. He was a member

28,1970

of many

professional

associations,

including

the

American Economic Association, American Statistical
Association, American Finance Association, National
Association
W.

Braddock

Hickman

graduated

from

the

of Business Economists,

Metropolitan

Economic Association, and the Business Economists'

University of Richmond in 1933 and earned his Ph.D.

Council. At the time of his death, he was chairman of

in economics from Johns Hopkins University in 1937.

the advisory

He was elected to Phi Beta Kappa, national honorary

Interest

scholastic society, and became an honorary member

Committee

of Beta Gamma Sigma, national honorary

commi ttee

Association.

fraternity.

He was a member

Princeton

University,

business

of the faculties of

Rutgers University,

and the

Rates

and

to the NBER Study on
served

on

the

Advisory

on Research to the Kentucky

Mr. Hickman's

Bankers

interest in higher education

also

continued after he joined the Federal Reserve Bank.

Institute for Advanced Study. In 1966, the University

In 1970, Mr. Hickman was named president of the

of Cincinnati

Cleveland Commission

awarded

degree of Doctor

Mr. Hickman the honorary

of Laws, and the University of

Richmond
made him
Commercial Science.

an

honorary

Doctor

of

on Higher Education

after

serving that group for several years. He was a member
of the Board of Trustees of Case Western Reserve
University, where he served as vice chairman of the

During World War II, he was a lieutenant

in the

Investment

Committee

and as a member

of the

U. S. Naval Reserve, specializing in exterior ballistics,
statistics, and computers. After the war, he was a

Visiting Committee for the School of Management of

member of the research staff and director of the

CWRU and was active in aiding the merger of Case

Corporate

Institute
of
University.

Bond Research Project

of the National

Bureau of Economic Research. His studies resulted in
three books, still considered landmarks in the area:
T~e
1900,

Volume

of Corporate Bond Financing Since

Corporate

Bond

Experience, and Statistical
Bond Financing.

Quality

and

Investor

Measures of Corporate

New

York

Life

Insurance

Company

from

1953-1956. He joined American Airlines as director
of economic

research

assistant vice president

in

He was also a member of the

Technology

and

Western

Reserve

He also willingly gave his time to civic affairs in
Cleveland.

At his death, he was president

and a

trustee of the United Appeal of Greater Cleveland. In
addition, he was a trustee of the Welfare Federation
of Cleveland, a member of the boa rd of directors of

Mr. Hickman was supervisor of economic studies at
the

Budget Committee.

1956

and was named

the

Greater

Cleveland

Growth

Association,

an

honorary trustee of The Cleveland Community Fund,
and a member
Committee

of

the

on Community

Businessmen's

Interracial

Affairs, the Citizens for

the following year. For the

Justice, and the Cleveland Commission on Health and

next three years, he played a major role in financing
the airline's purchase of jet equipment.

Social Services. As a collector of outstanding antique

In 1960, Mr. Hickman was appointed

senior vice

furniture and porcelain, Mr. Hickman found time to
serve on the board of the Society of Collectors, Inc.,

president of the Federal Reserve Bank of Cleveland

which

and was named president

Cleveland.

22.

of the Bank on May 1,

operates

Dunham

Tavern

Museum

in

W. BRADDOCK

HICKMAN

23.

COMPARATIVE STATEMENT OF CONDITION
ASSETS
Dec.31,1970

Dec. 31, 1969

Gold Certificate Reserves

.

$1,095,005,800

$ 862,419,422

Federal Reserve Notes of Other Banks
Other Cash

.
.

67,230,331
24,815,354

67,959,120
10,155,756

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

.

-0-

4,300,000

.
.
.

2,025,545,000
2,592,801,000
229,377,000

1,726,079,000
2,433,591,000
271,052,000

Total U. S. Government Securities

.

4,847,723,000

4,430,722,000

Total Loans and Securities

.

4,847,723,000

4,435,022,000

Cash Items in Process of Collection
Bank Premises
Other Assets

.
.
.

Total Assets

911 ,819,249
12,233,351
99,077,937

870,360,729
6,459,804
208,440,448

$7,057,905,022

$6,460,817,279

$4,198,315,903

$3,952,758,371

LIABILITIES
Federal Reserve Notes

.

Deposits:
Member Bank-Reserve Accounts
U. S. Treasurer-General Accounts
Foreign
Other Deposits

.-

1,551,356,278
93,748,489
11,570,000
24,423,951

1,924,212,585

1,681,098,718

.
.

763,832,390
45,324,844

662,792,878
44,383,712

$6,931,685,722

Deferred Availability Cash Items
Other Liabilities

1,813,296,320
76,407,271
11,125,000
23,383,994

.

Total Deposits

.
.
.
.

$6,341,033,679

Total Liabili ties

CAPITAL ACCOUNTS
Capital Paid In
Surplus
Total Liabilities and Capital Accounts
Contingent Liability on Acceptances
Purchases for Foreign Correspondents

24.

.
.

63,109,650
63,109,650

59,891,800
59,891,800

.

$7,057,905,022

$6,460,817,279

.

$

$

22,258,900

12,985,100

::;

•

.....
------

;

;

,------.

------ .

;

4

•

COMPARISON OF EARNINGS AND EXPENSES
1970
Total Current Earnings
Net Expenses

1969

.
.

$260,819,520
19,410,681

.

Current Net Earnings

$300,486,897
21,231,405
279,255,492

241,408,839

Additions to Current Net Earnings:
Profit on Sales of U. S. Government Securities (Net) .
Profit on Foreign Exchange Transactions (Net)
.
All Other
.

649,168
309,258
18,920

521,047
338,504

.

977,346

859,551

Loss on Sales of U. S. Government Securities (Net) ..
All Other
.

-0121,108

471,314
560,092

.

121,108

1,031,406

NET DEDUCTIONS
NET ADDITIONS

.
.

-0856,238

171,855
-0-

Net Earnings before Payments to U. S. Treasury

.

$280,111,730

$241,236,984

Dividends Paid
Payments to U. S. Treasury (interest on F. R. Notes)
Transferred to Surplus

.
.
.

$

$

.

$280,111,730

Total Additions

-0-

Deductions from Current Net Earnings:

Total Deductions

Total

3,666,823
273,227,057
3,217,850

3,544,719
233,808,165
3,884,100

$241,236,984

25.

As of February 1, 1971

FEDERAL RESERVE BANK OF CLEVELAND
DIRECTORS
Chairman
ALBERT G. CLAY, President
Clay Tobacco Company,

Deputy

Mt. Sterling, Kentucky

Chairman

J. WARD KEENER, Chairman of the Board and Chief Executive
The B. F. Goodrich

EDWARD W. BARKER
President
First National Bank of Middletown
Middletown, Ohio

DAVID L. BRUMBACK, JR.
President
Van Wert National Bank
Van Wert, Ohio

JOHN L. GUSHMAN
President and Chief Executive Officer
Anchor Hocking Corporation
Lancaster, Ohio

Company,

Akron,

Officer

Ohio

J. WILLIAM HENDERSON, JR.
Henderson
Columbus,

& Associates
Ohio

GEORGE F. KARCH
Chairman of the Board
and Chief Executive Officer
The Cleveland Trust Company
Cleveland, Ohio

R. STANLEY LAING
President
The National Cash Register Company
Dayton, Ohio

HORACE A. SHEPARD
Chairman of the Board and Chief Executive
TRW Inc.
Cleveland, Ohio

MEMBER,

FEDERAL

ADVISORY

Officer

COUNCIL

JOHN S. FANGBONER
Chairman of the Board and Chief Executive Officer
The National City Bank of Cleveland
Cleveland, Ohio

OFFICERS
First Vice President
WALTER H. MacDONALD
ROGER R. CLOUSE
Senior

Vice President and Secretary

CLYDE HARRELL
Senior

Vice President

JOHN J. HOY
Senior

Vice President

FRED O. KIEL
Senior

Vice President

CLIFFORD G. MILLER
Senior

Vice President

ELFER B. MILLER
General Auditor

OSCAR H. BEACH, JR.
Assistant

Vice President

MARGRET A. BEEKEL
Assistant

Vice President and Economist

ANNE J. ERSTE
Assistant

Vice President

THOMAS E. ORMISTON, JR.
Assistant

Vice President

GEORGE E. BOOTH, JR.

LESTER M. SELBY

Vice President and Cashier

Assistant

PAUL BREIDENBACH
Vice President and General Counsel

ELMER F. FRICEK
Vice President

R. JOSEPH GINNANE
Vice President

WILLIAM H. HENDRICKS
Vice President

WILLIAM J. HOCTER
Vice President and Economist

HARRY W. HUNING
Vice President

FRED S. KELLY
Vice President

26.

Vice President and Assistant

ROBERT E. SHOWALTER
Assistant

Vice President

HAROLD J. SWART
Assistant

Vice President

H. MILTON PUGH
Chief Examiner

MYRON R. MANN
Assistant

Cashier

DAVID A. TRUBICA
Assistant

Cashier

DONALD G. VINCEL
Assistant

Cashier

DAVID J. WEITZEL
Assistant

General Auditor

Secretary

As of February 1, 1971

CINCINNATI BRANCH
DIRECTORS
Chairman
GRAHAM E. MARX, President and General Manager
The G. A. Gray Company,

Cincinnati,

Ohio

PAUL W. CHRISTENSEN, JR.

WILLIAM S. ROWE

President
The Cincinnati Gear Company
Cincinnati, Ohio

President
The Fifth Third Bank
Cincinnati, Ohio

ROBERT E. HALL

PHILLIP R. SHRIVER

President
The First National Bank
and Trust Company
Troy, Ohio

President
Miami University
Oxford, Ohio

ROBERT B. JOHNSON

CLAIR F. VOUGH

President
Pikeville National Bank
& Trust Company
Pikeville, Kentucky

Vice President
Office Products Division
IBM Corp.
Lexington, Kentucky

OFFICERS
FRED O. KIEL

DONALD G. BENJAMIN

Senior Vice President

Assistant

ROBERT D. DUGGAN

Vice President

CHARLES A. CERINO

Vice President and Cashier

Assistant

Cashier

JERRY S. WILSON
Assistant

Cashier

PITTSBURGH BRANCH
DIRECTORS
Chairman
LAWRENCE E. WALKLEY, President and Chief Executive
Westinghouse

A ir Brake Company,

ROBINSON F. BARKER
Chairman of the Board
and Chief Executive Officer
PPG Industries, Inc.
Pittsburgh, Pennsylvania

JOHN W. BINGHAM
President
The Merchants and Manufacturers
National Bank of Sharon
Sharon, Pennsylvania

CHARLES H. BRACKEN
President and Chief Executive Officer
Marine National Bank
Erie, Pennsylvania

Pittsburgh,

Officer
Pennsylvania

RICHARD M. CYERT
Dean
Graduate School of
Industrial Administration
Carnegie-Mel/on University
Pittsburgh, Pennsylvania

MERLE E. GILLIAND
President and Chief Executive
Pittsburgh National Bank
Pittsburgh, Pennsylvania

Officer

ROBERT E. KIRBY
President
Westinghouse Electric Corporation
Industry and Defense Company
Pittsburgh, Pennsylvania

OFFICERS
CLYDE HARRELL
Senior

Vice President

JAMES H. CAMPBELL
Vice President and Cashier

PAUL E. ANDERSON
Assistant Vice President
J. ROBERT AUFDERHEIDE
Assistant Vice President

CHARLES E. HOUPT
Assistant

Vice President

27.

PITTSBURGH

CINCINNATI
BRANCH
(NEW BUILDING)

"," """"f' "'"

28.

lfffl

BRANCH

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