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THIRTY- EIGHTH A N S T A l REPOR
H n T T I.
FEDERAL RESERVE BANKI OF
WITH BRANCHES I N BALTIMORE
3 T
SERVING THE FIFTH FEDERAL




FOR 1952
RICHMOND
- J T
A S D CHARLOTTE
RESERVE DISTRICT

B usiness
N ew A
A Y
Y
M
C

ear’s

our

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heck

A

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in

1952

.

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ic h m o n d

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o n e y ’s

oney

.

.

.

1
6

.........................................10

o r t h

epartm ent

........................... 11

..................................14

C o l l e c t i o n .........................................16
A

g e n c y

is c o u n t

Bank

R

ddition a t

F i sc al
D

Ban k in g

and

and

C

and

............................................... 17

r e d it

Public R

E c o n o m ic R

..................................18

elations

e se a r c h

.

. .

18

..................................19

P e r s o n n e l ............................................................. 20
Pr
_____ F i n a n c i a l R

C O N T E S




r

o t e c t io n

...................................................... 20

esults

s

o f t h e Y e a r ’s O p e r a tio n s
F in a n c ia l
D irecto rs

St

and

a t e m e n t s

.

.

.

21

........................... 22

O ffic e rs fo r

1953

.

24

T

O

T

M

E




M

B

H

E

E

R

B

O

U

N

T

I E

T h e past year was an eventful
one fo r banking and business in
the Fifth District. It was an eventful one for
the Federal Reserve Bank o f R ichm ond as well.
I am happy to present some o f the year’s high
lights in this thirty-eighth Annual Report, and
I sincerely hope that y ou will find it interesting
and informative.
O n the pages follow in g w e have sketched in
words, charts, and pictures some o f the more
significant developments in our District, re­
view ed some o f the bank’s activities and serv­
ices, and summarized our financial operations.
Back o f all that w e have been able to accom ­
plish has been the friendly cooperation o f the
member banks o f this District. W e are grateful
fo r you r interest, y ou r suggestions, and y ou r
continued support.
Sincerely yours,

S

BUSINESS




M any o f
the forecasts
t h a t heralded
the approach and arrival o f 1952
warned that sooner or later the
nation’s econ om y w ould experience a
test o f the boom -high level o f business ac­
tivity. Some implied that the trialrun might begin in the

^JST JD

z B -A Jsn K z m sra -

ju st

1 9 3 2

B T T S IH S T E S S

COTTON
F IF T H

.A J N T D

B

A

N

K

I N

G

IIS T

1 9 5 2

percentage points above a year earlier, while
wholesale prices were four points lower.

CO N SU M PTIO N
D IS T R IC T

200

200

175

175

150

150

125

125

Banking— Loans Moved Steadily Upward
Fifth District member banks increased their
loans outstanding in every month o f 1952 ex­
cept January—at a moderate pace during the
first six months and at a much more rapid rate
after July. T ota l loans outstanding at the end
o f the year amounted to $2.3 billion, an increase
o f more than 10 per cent from year-end 1951.
Consumer loans were stimulated in the District,
as throughout the nation, b y the removal o f
Regulation W . B y m id-M ay amounts outstand­
ing were increasing at a much more rapid pace
than earlier and the accelerated grow th was not
checked b y net repayments until the last month

100

100
1946

1947

1948

1949

1950

1951

1952

C o tto n con su m p tio n in F ifth D is tric t m ills a t the
outset o f 1 9 5 2 was s till to b og g a n in g fro m th e crest
reached a year e a rlie r. T he lo n g -a w a ite d te x tile re­
covery began in e a rly sum m er, a nd by A u g u st co tto n
con su m p tio n was ba ck up to w ith in 5 per cent o f th e
postw ar peak.
R e la tive ly h ig h m ill use in th e last
fiv e m onths raised the ye a r's to ta l to w ith in 3 per
cent o f th e record set in 19 5 1.

D E P A R T M E N T ST O R E S A L E S A N D IN V EN T O R IES
F IF T H

DISTRICT
150

125

last half o f 1952. Yet, despite the w orst
steel strike ever and the confusion and
uncertainty o f an election year, business
activity expanded steadily and the e con ­
om y closed out the year at record levels
o f incom e and output.
Even so, 1952 was a year during w hich
supply and demand attained sufficient bal­
ance to permit a return o f the impersonal
forces o f the market place fo r the deter­
mination o f prices.
Restraints on c o n ­
sumer and real estate credit w ere sus­
pended, and although there was a large
extension o f credit in these fields during
the year, the price level resisted upward
pressures. In fact, the year as a w h ole
was marked b y softening prices despite
the grow th in business activity.
C on­
sumer prices at year’s end w ere on ly tw o

2



100
D e portm ent Store Sales

75
(Seasonally Adjusted)
(1 9 4 7 - 1949= 100)

50

50
1946

1947

1948

1949

1950

1951

1952

D o lla r volum e o f sales a t F ifth D is tric t d e p a rtm e n t stores
was 4 per cent h ig h e r in 19 5 2 th a n in 1 9 5 1; fig u re s fo r the
co u n try as a whole showed no change.
Despite re s tra in t ex­
ercised by consumers the D is tric t's persistent postw ar g ro w th
in sales continued. Store stocks flu c tu a te d w ith in a n a rro w e r
range th a n in the preceding tw o years, re fle c tin g p re va le n t
conservative in ve n to ry policy.

of the year. Business firms in the District re­
duced their outstanding bank loans moderately
during the first half, but beginning late in July
and continuing through Novem ber they turned
more and more to their bankers for new money.
T he demand slackened in December, but the
amount of business loans outstanding at the end
of the year was about 9 per cent above a year
earlier and at an all-time high.
H oldings o f U . S. G overnm ent securities b y
the District’s member banks increased moderately
during 1952, the $2.6 billion held at year-end
exceeding b y 2
per cent the amount held at
the end o f 1951.
T heir total deposits closely paralleled loan and
investment changes, declining slightly in the first
half and grow in g substantially during the last
six months. T h e amount outstanding at the end

/z

M A N U F A C T U R IN G
F IF T H

of 1952 was approximately 3 per cent greater
than a year earlier and 7 per cent above the
preceding June’s figure.
A significant feature of the year’s banking
developments was increased member bank bor­
rowing from all Federal Reserve Banks. From
the early 1930’s until the beginning of the 1950’s
borrowings were a relatively unimportant source
of reserve funds for member banks. Increased
resort to Reserve Bank credit appeared late in
1951, average daily borrowing in the Fifth Dis­
t r i c t running
close to $20
million during
December o f
that year. By
Ju ly 1952 this
was up to $67.9

EM PLOYM ENT

DISTRICT

2 00

million, and by
the end of A u­
gust daily aver­
age borrowings
had r e a c h e d
$ 7 4 .5 million.
A fter a decline
in September, borrowings ran exceptionally high
during the last two months, reaching a high for
the year of $132.6 million on Novem ber 28.

(Not Adjusted For Seosonal V a ria tio n s)
( 1 9 3 5 ' 1939 = 100)

150

100

50

Industry— Most Lines Did Well

19 4 6

1947

1948

1949

1950

1951

1952

Follow ing the recovery in te xtile s and fu rn itu re and se ttle ­
m en t o f th e steel strike, m a n u fa c tu rin g e m p lo ym e n t in the
F ifth D is tric t rose sh a rp ly last A u g u st and, h o ld in g the g a in
th ro u g h the Fall, closed o u t the year a t a level ju st short o f
the a ll-tim e h ig h o f m id - 1943.




Despite the high levels o f activity in defensesupporting durable goods industries, residential
construction, and plant and equipment installa­
tions, depressed lines in consumer goods industries
caused some slack in the District economy during
the first half o f 1952. Subsequent recovery in
textiles and furniture in particular and in c o n ­
sumer goods in general filled in the gaps during
the last six months, and b y the end o f the year all
the m ajor com ponents o f the District’s industrial
structure were contributing their share in produc­
ing a record flow o f income.

b t t s i z s t i e s s

^ in tid

b a i s t k i k t g

R ecovery in the cotton textile industry
during the last half fell short o f pulling the
year’s total up to the 1951 level. H o w ­
ever, the District fared better than the
nation, with a decline in cotton con ­
sumption o f on ly 3 per cent fo r the year
as com pared with a cou n try-w ide decline
o f 8.5 per cent. . . . 1952 shipments o f
rayon and acetate w ere o ff 2.8 per cent,
but high-tenacity yarns and rayon staple
and tow , produced principally in this Dis­
trict, showed gains. . . . H osiery shipments
exceeded the 1951 total b y 8.4 per cent to
reach a new high. T h e full-fashioned in­
dustry closed a year o f considerable dis­
tress-pricing with a better inventory situa­
tion but with keen com petition still bear­
ing dow n on prices. . . . Apparel manufac-

iis t

1952

C A S H R E C E IP T S F R O M F A R M M A R K E T IN G S
F IF T H

DISTRICT

M i ll io n s of D o llo r s

500

400

400

Jon

Feb

Mar.

Apr

May

June

July

Aug

Sept.

Oct.

Nov

Dec.

Farmers o f the F ifth D is tric t fa re d less w ell in 1952 than
in 1951 and by com parison, because o f u n fa vo ra b le price
changes fo r some products o f th is area, less well th a n farm ers
over the co u n try as a whole.
Cash receipts in th is area
th ro u g h N ovem ber were down 4 per cent from last year.
It
m ig h t have been worse, however.
A u g u s t rains a rrive d in
tim e to end a serious d ro u g h t th a t could have spelled disaster.

LOAN AND DEPOSIT T REN DS
FIFTH DISTRICT MEMBER BANKS
of Dollors

-5—

4_
3

J.
Z

■

T o ta l deposits a t F ifth D is tric t m em ber banks rose
s u b s ta n tia lly in the last h a lf o f 19 5 2 a fte r declin in g
s lig h tly over the firs t six m onths. A t year-end, to ta l
deposits am ounted to $ 6 ,7 9 7 m illio n , the highest
level ever a tta in e d .
The p rin c ip a l fa c to r causing
th is g ro w th was the expansion o f loans, p a rtic u la rly
fo r com m ercial and in d u s tria l purposes.

4



turing, one o f the notable postwar expansions
in the District, added m ore than 5,000 new
em ployees in 1952 to raise its total em ploy­
ment to 76,500. . . . Cigarette production
in District plants, 3 per cent greater than in
1951, accounted for 79 per cent o f total out­
put in the nation. King-sized cigarettes held the
headlines with a rate o f grow th that doubled
their share o f the market in 1952. . . . A phenom ­
enal recovery was staged during the year by
the furniture industry. Starting o ff with m ountain-high inventories and g loom y prospects, it
saw an upsurge in demand after last Spring so
strong that, despite earlier losses, dollar volume
fo r the year approximated the record set in
1951. . . . Bituminous coal production fell below
1951, with both domestic and export demand
dow n . . . . District manufacturing employment
rose to a postwar peak late in the year, m oving
very close to the record level o f 1943. . . . C on ­
struction, transportation, com m unication, and

trade paced a steady growth of employment in
non-manufacturing industries. . . . Government
employment leveled off toward the close of
1952, with Federal jobs declining slightly and
state and local continuing to rise.
Trade— Contradictory But Good
Consumer activity was marked by restrained
but on the whole satisfactory buying and by
seemingly contradictory rises in both borrow­
ing and saving. Department store trade, for ex­
ample, was restricted in the District to an in­
crease of only 4 per cent during the year. This,
however, was a relatively good showing since
over the nation it held at about the 1951 level.
Expansion o f consumer credit was the well-spring
for the grow th of sales in a number of lines.
Sales of District furniture stores, for example,
were u p ,9 per cent in 1952 but were accom­
panied by an expansion of credit which by yearend had raised receivables to an all-time high
17 per cent above a year earlier.
During much of the year soft goods outsold
consumer durables, but by the end of Summer
the effects of sharp gains in personal incomes
and extension of more liberal credit terms took
hold and trade in durables picked up consider­
ably. Television sales attained boom proportions,
and demand for most “ big ticket” items had
strengthened considerably by the fourth quar­
ter. T otal retail sales of appliances in the nation
approximated the 1951 volume. An important
development was the sharp rise in automobile
sales after the steel strike, with credit sales ac­
counting for around 70 per cent of new cars
sold in the latter part of the year as compared
with 50 per cent in 1951.
Agriculture— Prices Down, Land Values Up
Fifth District farmers did not fare as well
in 1952 as in 1951. Nevertheless, the year
turned out considerably better than had been
feared earlier in the season.
Rains in early
August came in the nick of time to arrest what
would otherwise have been a devastating drought.
For the country as a whole, prices received
by farmers averaged 5 per cent lower than in




1951, while prices they
higher. Price changes of individual farm prod­
ucts were such that this area appears to have
fared worse than others generally. Through
Novem ber, cash returns from farm marketings
for the District were trailing 4 per cent be­
hind the corresponding period of 1951. N ation­
ally, heavier marketings more than offset lower
prices, and cash returns for the period were
slightly more than a year ago.
T h e r i s e in
f a r m

land

prices
slowed
appreciably,
both in the D is­
trict and nation­
ally. Neverthe­

less, Fifth Dis­
trict land values
on N ovem ber 1, 1952 averaged 6.4 per cent higher
than a year earlier. This was double the rate of
increase for the nation and the greatest increase
of any Federal Reserve district.
Another Postponement?
W ith its principal industries busy, its highways
and markets filled with the traffic of trade, and
with its labor force almost fully employed at
record rates o f remuneration, the Fifth District
entered the new year sharing the hope o f the
rest of the nation that 1953 would experience
another postponement of the perennial postwar
forecast, “ a possible down turn in business ac­
tivity during the second half of the year.” W hat­
ever the final outcome, there is initially a sound
attitude o f confidence tempered by cognizance
of the ever-present weaknesses in a long infla­
tionary growth.

5

I T W
S E
j L T D

.a

h

J D

x r r x o i s r

?

i^ x o m

v c o is r iD

Sorting and Proving Checks

Veteran staff members whose recollections
span the decades from the day w hen the
Federal Reserve Bank occu pied rented quar­
ters in a com m ercial banking house on R ich ­
m on d’s Main Street can hardly remember a
time when there seemed ever to be enough
room to w ork in. Until n ow , that is. For
with the opening late in 1952 o f the new
Eighth Street Addition, a six-story structure
enlarging the head office premises b y 64,000
square feet, the problem o f where to take
care o f the steadily mounting w ork load was
answered—fo r the present. If in future years
need should again arise fo r further expansion,
the new building’s footings and colum ns will
carry three additional floors.
N o r is it beyon d the realm o f possibility
that further expansion m ay becom e necessary
in the years ahead.

F or as the e con om y o f

the Fifth District expands, so must the Fed­
eral Reserve Bank w hich serves it.

6



Research Department Library

Built at a cost o f approximately $2,500,000, the new Eighth Street A ddition is architecturally
similar to the older Main Building, with w hich it is joined back to back abov

iiv

u iji

w»t\7i y

T h e steel, brick, and concrete structure is faced with Indiana limestone and fronting on Eighth
Street are five Corinthian colum ns 40 feet in height.




T w o entrances open from the street, one
leading into the Personnel Depart­
ment reception area and elevators,
the other directly into an audi­
torium.

T h e new building is

built on what is know n as the
old “ A ca d em y ” lot, the site o f
a famed theater o f another
era. T h e property was ac­
quired
1934.

by

the bank in

G round for the

new b u i l d i n g

was

broken in September
o f 1950.

HXTEW A D D I T I O N

.ATT I ^ X O H n V E O lS r iD

W h e n the bank began operating on
N ovem b er 14, 1914 (it was the first Fed­
eral Reserve Bank to n otify the Secretary
o f the Treasury that it was open and
ready for business) it had tw enty staff
members and occupied rented quarters in
the old National State and C ity Bank
building at 1109 East Main Street. W ith ­
in tw o years it had a w orking force o f
125 and had expanded into an adjoining
building. B y 1921 there w ere 541 em­
ployees scattered about five separate
rented buildings. (Business was grow in g
fast. For instance, in the first half o f
1916, the year the bank began the c o l­
lection o f checks, the daily average num­
ber o f items handled was 3,576; b y 1920
it was 110,960.) In O cto b e r 1921, after

A ^ r r

Health Service In firm a ry

8




New Heating Plant

seven years as a tenant, the bank m oved into its
first permanent location, described at the time
as a “ building o f monumental and dignified char­
acter in keeping with the great institution it was
designed to house” . But even while this build­
ing was under construction it became apparent
that yet more space w ould be needed, and a sixstory annex was quickly raised at the rear. In
1 9 3 1 and again in 1 9 4 1 the Main Building had
to be enlarged to accom m odate the ever-expand­
ing w ork load. By 1 9 5 0 it was time to build again.
W ith six stories above ground and tw o levels
below , the Eighth Street Addition, containing
6 4 , 0 0 0 square feet o f usable space, is b y far the
biggest in the bank’s series o f building projects.
T h e original Main Building and the Annex had
a com bined total o f about 4 7 , 0 0 0 square feet
o f usable space—space not taken up b y utilities,
corridors, elevators, stairs, and the like.
The
1 9 3 1 expansion provided 3 7 , 0 0 0 more square feet
and the 1 9 4 1 project 7 , 0 0 0 .
A m odel o f a modern m ajor edifice, the A d d i­
tion was planned not only to obtain needed w ork ­
ing space but also to provide excellent working

M ain Cafeteria

conditions and conveniences fo r the staff mem­
bers.
From sub-basement to r o o f these aims
were carried out. A quick tour follow in g that
route w ou ld offer glimpses of:
Sub-basement—Boiler room , with three 200horsepower oil-burning boilers for winter heating
o f entire bank; air conditioning equipment; head­
quarters o f the building maintenance force; car­
pentry and sheet metal w orkshops; tool room ;
office machine repair shop; and electrical panels.
Basement—Garage area for the bank’s cars;
Protection Departm ent’s pistol and rifle range;
guard station fo r security court.
First F loor—Personnel Department; auditorium,
with seating capacity o f nearly 600, m otion pic­
ture equipment, and stage; Health Service infir­
mary, with tw o treatment and five patients’ rooms.
Second F loor—O ld records section, with up­
ward o f 5,000 files; maids’ lounge and porters’
lounge; photograph and fingerprint files.
T h ird F lo o r—Fiscal A g e n cy and Securities D e­
partments, where more than 120 people handle
the G overn m en t’s bond transactions fo r the Fifth
District and hold member banks’ securities.




Christm as Party in Auditorium

Fourth F loor—Transit Department, a day and
night operation, with more than 200 men and
w om en and 78 com plex p ro o f machines process­
ing an average o f some 300,000 checks and 46,000
postal m oney orders a day. (So big is this de­
partment that it extends into the Main Building
and the A n n ex.)
Fifth F loor—General Files Section; A ccou n t­
ing Department; Bank A ccou n ts Department;
teletype section; Research Department library.
Sixth F loor—T w o cafeterias, the larger seating
300 persons; private dining room ; kitchen; em­
ployees’ lounge, library and reading room .
T h e new building was designed b y T a y lo r and
Fisher, architects, o f Baltimore and built b y the
G eorge A . Fuller
Company,
of
W ashington. Real
property taxes are
paid on the build­
ing just as they
are on any other
privately
ow ned
structure.

^

Wr

9

.A YEAR’S ACTIVITY
.
A s the pages before and after this one
so plainly show, it seems an impossibility
to report on a year o f activity at this kind
o f institution without resort to trainloads
o f figures ( o f undeniable significance but
perhaps o f doubtful interest) and truck­
loads o f w ords (testifying to remarkable
but possibly uninspiring deeds). A n an­
nual report o f a banking institution has to
have figures, o f course, and suitably dry
w ords to augment or explain them. A n d
yet this is a living organization, this Fed­
eral Reserve Bank o f R ichm ond, not just
buildings full o f machines and ledgers. It
is ch ock fu l o f humankind, m ore than
1300 o f them b y year-end count, o f both
sexes, various ages, and many creeds.
It w ould be nice if w e could tell you,
our stockholders, about some o f our
people—about the you n g man in the tele­
graph section w h o nightly talks to friends
all over the w orld on his “ ham” wireless,
about the guard w h o grow s prize-winning
dahlias, about the vice president w h o
knows Italian opera, w ords and music,
so well that he could perform at the
M etropolitan if he could on ly sing, about
the department manager w h o raises goats
. . . . but this is an annual report.
W e ’d like to mention h ow m uch w e
enjoyed visiting with many o f y ou in
you r ow n offices—our people made more
than a thousand calls on bankers in 1952.
A nd h ow agreeable it was to see y ou at
one or another o f the m ore than three
hundred meetings w e attended, like W est
V irginia’s School o f Banking at Jackson’s
Mill, the conferences at Chapel Hill,
Charlottesville, Natural Bridge, and Fred­
erick, the conventions at Charleston,
W h ite Sulphur, Roanoke, H o t Springs,
Pinehurst, and Atlantic C ity, and group
and clearinghouse meetings all over the
Fifth District. A n d h ow pleased w e were
that so many bankers (m ore than five




hundred) visited this bank. But none o f
those sentiments seems adaptable to charts
or tables.
So, a few vital statistics not covered in
other sections o f this report may be ad­
missible here: O ur head office directors,
as is noted in later pages, remain the same.
M r. Rust and M r. Johnson were re­
elected to new three-year terms.
The
B o a r d o f G overnors reappointed Mr.
W o o d w a r d for three years and redesig­
nated him deputy chairman. Mr. M cC o r­
mick was redesignated chairman.
There were changes in the directorates
at each o f the branches.
Eugene G .
G rady, president o f the W estern National
Bank o f Baltimore, and L. V inton H ershey, president o f the H agerstown Shoe
Com pany o f Hagerstown, left the Balti­
m ore board, both after six years. T h e
latter had been board chairman fo r four
years. Stanley B. T rott, president o f the
Maryland Trust Com pany o f Baltimore,
and H ow ard M . T ay lor, Jr., vice president
o f the International Bedding C om pany o f
Baltimore, joined the board.
L acy I.
R ice, president o f the O ld National Bank
o f Martinsburg, was re-elected.
A t Charlotte, W . A . L. Sibley, vice
president and treasurer o f M onarch Mills,
U nion, South Carolina, left the board
after six years, during tw o o f w hich he
had been chairman. G eorge S. Crouch,
board chairman o f the U nion National
Bank o f Charlotte, and Jonathan W o o d y ,
president o f the First National Bank o f
W aynesville, were re-elected. A successor
to M r. Sibley has not yet been named.
Three new officers w ere chosen during
the year. Economists Thom as I. Storrs
and J. D ew ey Daane w ere elected as­
sistant vice presidents at the head office
and A . Augustus Stewart, Jr., was named
cashier o f the Baltimore branch, replac­
ing J. A . Johnston, w h o died in M ay.

T h e year just ended will be
long remembered as the year the
Federal Reserve Bank o f R ich ­
m ond made its debut in “ show
business” . A program designed
for N orth Carolina bank officers
and directors was developed into
a dramatic production that b y
year’s end had been seen and ap­
plauded b y bankers, businessmen,
educators, and others from all
sections o f the country.
This
w a s-a n d i s - Y O U R M O N E Y ’S
W ORTH.




'Y 'O T T I R ,

M

O

N

E

Y

’S

'W 'O I F t T I E I

Y O U R M O N E Y ’S W O R T H is a
program designed to contribute to a
broader understanding o f the Federal
Reserve System.
Basically it is an illustrated lecture,
but in the unique manner o f its presenta­
tion it goes far beyon d the com m on
concepts o f that familiar teaching device.
Com bining the use o f unusual illustra­
tive technique and material with care­
fu lly w ork ed out stage-craft, the pro­
gram so effectively sets forth its co m ­
plex theme that an econom ics professor
at one o f the Fifth District’s leading
universities was m oved to call it a p ro­
gram that “ gives a four-year course in
econom ics and monetary policy in one
easy lesson.”
A banker in N orth Carolina, where
the program was first presented in a
series o f “ one night stands” , was the
first to refer to it as a theatrical event.
“ It’s the best educational show I’ve seen
since Chautauqua days,” he said.
P edagogy, drama, or a com bination o f
the tw o, Y O U R M O N E Y ’S W O R T H
caught the imagination and drew the
praise not on ly o f Fifth District bankers
but o f many persons far rem oved from
home territory.
Y O U R M O N E Y ’S W O R T H , as the
title implies, is concerned with the value
o f the Am erican dollar, whose fluctua­
tions in purchasing pow er the program
uses as a basis fo r discussion o f the
factors making fo r econom ic instability.
T racin g the developm ent o f the postwar
inflation, it describes the inflation as an
ailment in the b o d y politic, likens it to
an illness o f the human system, and dis­
cusses the monetary, fiscal, and other
medicines available to treat the disease.
It gives primary emphasis to the m edi­
cines o f m onetary policy in the Federal
Reserve System’s pharmacopoeia.

12




E con om ic factors affecting stability—the flow o f
spendings in relation to the flow o f goods, changes
in the m oney supply through bank purchases o f
securities and the making o f loans, fiscal and m one­
tary actions, and others—are illustrated b y means o f
charts and other devices constructed piece b y piece
before the eyes o f the audience.
W h en Y O U R M O N E Y ’S W O R T H was first
presented, as a project sponsored b y the Bank M an­
agement and Research Committee o f the N orth C aro­
lina Bankers Association, it was a program almost
exclusively for bankers.
By mid-year, however,
partly in response to the request o f a Virginia
industrialist, it had becom e tw o separate productions
—the banker version, a three-man, tw o-h ou r affair
with an audience participation finale, and a tw o man, forty-five minute layman’s version. Both have
been acclaimed.
T h e longer, or banker, version was seen b v bank­
ers o f N orth Carolina at meetings in Chapel Hill,
Pinehurst, G reensboro, Asheville, H ick ory , Char-

Y O U R M O N E Y ’S W O R T H id ties
tined fo r even w ider attention in 1953.
As 1952 drew to a close members o f the
cast were making the live presentation
into a m otion picture, a 16-mm. sound
film in full color.
A t the same time
the Virginia State Department o f E du ­
cation was translating the production
into
still another
visual
education
medium, a film strip fo r use in school
econom ics classes.
In addition, com plete sets o f all o f the
illustrative material fo r other casts o f
performers were provided each o f the
other Federal Reserve Banks fo r use in
their districts. Several national educa­
tional organizations have asked for
scripts and sets o f material, and arrange­
ments are being made to supply them
through the Federal Reserve Banks o f
their districts.
Similar sets are being
made available also to professors o f
m oney and banking in Fifth District
universities and colleges.

lotte, W ilm ington, R o ck y M ount, and Elizabeth C ity;
b y Virginia bankers at R ichm ond, Roanoke, N orfolk ,
Alexandria, Staunton, and Bristol; and b y W est V ir ­
ginia bankers at the state association’s 1952 School
o f Banking at Jackson’s Mill.
It was presented before the officers and directors
o f the Federal Reserve Banks o f Boston, Cleveland,
and Philadelphia; the Conference o f Chairmen and
the C onference o f Presidents o f the Federal Reserve
Banks, and the members and staff o f the Board o f
G overnors o f the Federal Reserve System.
T h e short version, first presented at the third
biennial C onference on the Public and the Public
Schools in Virginia, whose theme was “ Education for
E con om ic Understanding” , was subsequently given
before many teachers’ workshops and com m unity
groups, a conference o f the Virginia Farm Bureau
Federation, and, among others, a w om en ’s finance
forum .
Excerpts from the show, one-man talks
with Y O U R M O N E Y ’S W O R T H illustrative de­
vices, have been given before many other groups.




It is w orth y o f com m ent that Y O U R
M O N E Y ’S W O R T H
is entirely a
“ home talent” production. T h e script
was written here. T h e original illustra­
tions were made here. T h e carpentry
and construction w ork w hich created
the physical “ stage properties” were
done here. T h e performers are m em­
bers o f the staff here.
Show business?
T h e bank has no
intention o f invading the legitimate
theater or offering com petition to H o lly ­
w ood.
T h e aim is to enlarge under­
standing o f the purposes and functions
o f the Federal Reserve System. A u d i­
ence reaction leads to the conclusion
that the dramatic technique o f Y O U R
M O N E Y ’S W O R T H is an effective
way to accomplish it.
A s this report was goin g to press, the
program discussed above was presented
before both the Senate and H ouse Bank­
ing and C urrency Committees.

13

z z h t y
m o s e departm ent

T h e expanding econ om y o f the Fifth District,
grow th in industry and trade, and increased
activity at naval and military establishments had
a stimulating effect on the public’s demand for
cu rren cy and coin in 1952. Answ ering the de­
mand was one o f the principal concerns o f the
Federal Reserve Bank, and during the twelve
months covered b y this report the head office
and branches received and paid out a total o f
$5,566,748,426 in cash.
T h e amount—o f w hich $5,462,894,008 was in
paper m oney and $103,854,418 in coins—was
an all-time record, and it meant an all-time rec­
ord amount o f w ork fo r the people w h o did the
job, the men and w om en o f the M on ey depart­
ments o f the bank and its Baltimore and Charlotte
branches. T o these people dollar figures denote
actual pieces o f paper and metal that must be
lifted, carried, sorted, counted, listed, packaged,
w atched, checked and double-checked, and
m inutely accounted for, item b y item.
T h e $2,861,933,184 in currency and $34,808,342 in coin handled b y the 66 people in the
head office M on ey Department meant 453,540,283




individual notes and 426,879,001 coins. Balti­
m ore’s $1,503,242,647 and $54,615,290 came to
234,657,269 notes and 788,078,617 coins for a
staff o f 31. A t Charlotte, with 28 in the de­
partment, the $1,097,718,177 in currency added
up to 193,436,055 notes and the $14,430,786 in
coin to 172,887,201 pieces.
Working in the
coin room s o f the Federal Reserve Bank has
much in com m on with stevedoring: $103,854,418
in coins amounted to about 5680 tons, or some
22 tons per w orking day.
It is interesting to note that the average daily
“ handle” o f currency and coin was $9,655,805
at the head office, $6,157,542 at Baltimore, and
$3,719,561 at Charlotte—interesting statistically,
that is, bur there were no average days. Many
days the dollar amount—and tonnage—were con­
siderably higher; other days they were lower,
depending on the seasonal demand. Decem ber,
for instance, was the busiest month at R ichm ond
and Baltimore, and O ctober at Charlotte. Months
o f least activity were February at the head office
and Baltimore, and March at Charlotte.

T h e year brought a new high in the circulation
o f Federal Reserve Bank o f R ichm ond “ 5-E ”
notes—$1,905,449,205 outstanding on D ecem ber
23, a 5.6 per cent increase over the previous high
o f $1,805,173,440 on D ecem ber 22, 1951. A v er­
age circulation during 1952 was $1,836,108,005,
a level 8 per cent above that o f 1951, the previous
peak year.
(Federal Reserve notes, issued b y each o f the
twelve Reserve banks, make up about 85 per
cent o f the nation’s currency, with Silver Certifi­
cates and United States notes, issued b y the
Treasury, constituting most o f the rest.)
Collateral backing this bank’s notes in circula­
tion in 1952 averaged about $600,000,000 in
gold certificate reserves and roughly $1,350,000,000 in Governm ent securities. T h e proportion
o f gold certificates varies from time to time, but
it has always been well above the 25 per cent
minimum required b y law.

CURRENCY

B illio n s of D o lla rs

C U R R EN C Y

From

Boston
N e w Y ork
Philadelphia
Cleveland
Atlanta
Chicago
St. Louis
A4inneapolis
Kansas City
Dallas
San Francisco

To

$21,452,500
$93,854,500
$49,305,250
$18,095,000
$51,011,750
$22,653,000
$ 8,909,900
$ 2,755,500
$ 4,111,000
$ 6,360,850
$15,303,800

$ 7,826,500
$40,2731,750
$28,348,000
$27,02 5,500
>
$24,655»,500
$ 9,899,750
$ 4,9411,500
$
624,750
$ 2,OR>,750
$ 2,682!,750
$ 5,187\500

In addition to issuing currency, the Reserve
banks also withdraw it from circulation. W h en

A N D COIN R EC EIVE D A N D PAID OUT

M illions of Pieces

1951

1952

A sidelight on the w ay m oney gets around is
found in the figures on interdistrict circulation
o f Federal Reserve notes, figures carefully kept
because Reserve banks may not reissue notes o f




other Reserve banks. T h e table shows the value
o f its ow n notes this bank got back from each
o f the other Reserve banks and the amount o f
their notes returned to them during 1952:

paper m oney is w orn -ou t or excessively dirty it
is “ canceled” , written o ff the books, and sent to
the Treasury for destruction. T his bank canceled
a total o f $812,692,417 in 1952.

Probably n o better measure o f the grow th
o f the Federal Reserve Bank and its contribu­
tion to the increasing efficiency o f the bank­
ing system cou ld be fou n d than the volume o f
check collection operations. W ith about 85
per cent o f the nation’s business transacted b y
check, a slight projection o f the imagination
cou ld derive from these figures a pertinent
com m entary on the entire Fifth District
econ om y.
T h e charts show vividly the increase in both
the number o f cash items (m ostly checks) han­
dled and the dollar amount represented at the
R ich m on d head office and at the Baltimore
and Charlotte branches.
T h e percentage
changes show n in the table tell their ow n
story o f remarkable grow th in the scope o f
the job and reflect the efficiency o f operation
brought about in part b y increased mechaniza-

M illio n s o f C h e c k s

B illio n s o f D o lla r s
---------------------------------- 40—

CHECK

□ C
horlotte
□
Q

J3

B a ltim o r e
R ic h m o n d

a

19 3 9

j

--------------,20- |
CHECK

C O L L E C T IO N

D o lla r A m o u n t

CO LLECTIO N

1946

19 52

19 51

tion. N o t shown in charts or table is the signifi­
cant volum e o f operations in noncash collection,
w hich fo r the bank as a w hole amounted to a
record 577,000 items totaling $177,402,000.
C H E C K C O L L E C T IO N C O M P A R IS O N S
Office

1952 Totals

Percentage
Increase Over
1939 1946 1951

R ic h m o n d

Number o f items
Dollar amount
Employees

107,318,000
$36,396,512,000
209

166
399
118

59,003,000
$15,235,306,000
107

Number o f items
43,390,000
Dollar amount
$16,769,954,000
Employees
67

67
83
27

17
6
3

222
252
81

41
20
2

15
6
5

338
701
191

91
86
22

19
3
6

173
399
115

63
64
18

17
5
4

B al t im o r e

Number o f items
Dollar amount
Employees
C harlotte

T

otal

Number o f items
Dollar amount
Employees

check
16




:

209,711,000
$68,401,772,000
383

collection

FISCAL AGENCY

“ Fiscal A gent fo r the U nited States G ov ern ­
m ent” is an imposing title involving an impressive
amount o f w ork b y the Federal Reserve banks,
principally in their Fiscal A g e n cy departments.
In 1 9 5 2 the Fiscal A g e n cy departments o f the
Federal Reserve Bank o f R ichm ond and its Balti­
m ore and Charlotte branches processed almost
1 3 , 0 0 0 , 0 0 0 U . S. Governm ent securities arising
from issuing, exchanging, and redeeming U ncle
Sam’s IO U s. This was about 5 0 , 0 0 0 pieces per
w orkin g day—a tremendous volum e o f w ork re­
quiring a sm oothly integrated w orking force oper­
ating with a minimum o f lost m otion.
This is not, b y any means, a com plete measure
o f all the w ork o f the Fiscal A g e n cy departments.
T h e brief run-dow n in the accom panying table
o f the various tasks and the volum e involved in
acting as the financial representative o f the U . S.
Treasury indicates w h y Fiscal A g e n cy kept 155
people busy at the head office and tw o branches
o f this bank.
T h e 1952 volume o f operations in Fiscal A g en cy
included issues o f 5.9 million savings bonds
amounting to almost $363 million. As is often the
case, the regular w ork load in Fiscal A g e n cy was
increased in 1952 b y a special Treasury transac­
tion, the introduction last Spring o f the new type
Series E Savings Bond. T h e result was a rise in
the average number o f savings bonds handled per
w orking day from about 15,000 in 1951 to almost
20.000 this past year.
A s a consequence o f the new savings bond issue,
Fiscal A g e n cy had to call in stocks o f “ old ty p e”
E bonds held b y 1,718 agents in this District and
distribute stocks o f new bonds. Some 490,000 old
bonds were returned to the bank, and in turn,
922.000 new “ Es” were shipped out. In one
month, nearly a million bonds in excess o f the
number normally handled b y Fiscal A g e n cy passed
along its “ production line” .
Needless to say, normal operations had to be,
and were, carried on as usual.

to an increasing extent in 1952. U npledged
securities ow n ed b y member banks and held
in safekeeping may be used fo r collateral pur­
poses with any department o f the Federal
Reserve Bank. U npledged securities in safe­
keeping, issued b y the G overnm ent and pay­
able b y the Federal Reserve Bank as fiscal
agent, are withdrawn on maturity or call dates
and the proceeds credited to the ow ners’ re­
serve accounts. T h e service also covers se­
curities ow ned b y a member bank w hich it has
pledged fo r some purpose, as fo r example, to
secure Treasury T a x and Loan deposits. A ll
told, this bank and its branches received and
delivered 116,443 securities in 1952. M any o f
the same securities were, o f course, handled a
number o f times fo r various purposes.

V o l u m e o f O p e r a t io n s —

Number

M a r k e t a b le S e c u r it ie s
Is s u e d , e x c h a n g e d ,
a n d re d e e m e d




Amount

O v e r - a ll to ta l

1 4 1 ,0 0 7

$ 5 ,6 5 6 ,0 1 5 ,6 4 6

5 ,8 6 9 ,9 0 9
6 ,7 9 0 ,9 0 4

3 6 2 ,6 6 4 ,2 6 8
3 5 6 ,2 4 8 ,0 4 2

4 7 ,0 8 5

5 ,9 9 4 ,3 7 5

1 3 5 ,3 7 4
2 ,2 9 0
1 ,8 7 8

3 ,2 9 4 ,9 0 4 ,8 0 2
9 6 3 ,3 8 9 ,1 0 0
1 3 ,4 0 2 ,1 5 0

1 2 ,9 8 8 ,4 4 7

S a v in g s B o n d s
Is s u e d
R edeem ed
S a f e k e e p in g f o r t h e
p u b lic
T re a s u ry T a x a nd
L o a n A c c o u n ts
D e p o s it a c c o u n t s
C o lla t e r a l a c c o u n t s
M is c e lla n e o u s

T h e safekeeping and custody o f securities is an­
other service o f this bank used b y member banks

1952

1 0 ,6 5 2 ,6 1 8 ,3 8 4

•
>

r

17

I A S I
B U T N - U TI
A N D PUBLIC RELATIONS
Measured b y the limiting brackets o f the
form al organization chart, it is one o f m e
smallest o f the bank’s several departments,
but in the real meaning o f the term the Bank
and Public Relations Department is b y far
the largest. E veryone in the bank and its
branches—1,317 as the year closed—belongs
to it. T h e man w h o polishes the handle o f
the big fron t d o o r and the chairman o f the
board o f directors are Bank and Public R e ­
lations representatives.
So are the transit
clerks, the typists, the vice presidents, the
elevator operators, the economists, the guards,
the auditors, the maintenance force, the cafe­
teria cook s and servers, and the field repre­
sentatives. E very one o f them represents the
bank to some segment o f the District’s bank­
ing com m unity and the public.

T h e w ide scope o f the Bank and Public
Relations function makes it hard to measure
the actual accomplishments o f a year’s
activity. H ow ever, a few figures:
Staff people made 1,007 visits to Fifth
District banks, attended 329 banker meetings,
including all o f the state conventions and
conferences in the District and several out­
side, gave talks to 189 groups, served as
faculty members at banking conferences in
N orth Carolina, Virginia, W est Virginia,
Maryland, and at the Graduate School o f
Banking. Some 1,300 persons visited the bank
and branches, prints o f four films about the
Federal Reserve w ere provided 150 schools
and other borrow ers (total audience: 8,395),
and 8,755 copies o f various publications were
distributed.

DISCOUNT AND CREDIT
T h e generally tight reserve positions o f
member banks throughout 1952 brought in­
creased use o f one o f the advantages o f
System membership—the discount privilege.
N in ety m em ber banks availed themselves o f
this service in 1952 as against 83 in 1951;
how ever, the number o f transactions jumped
136% and aggregate borrow ings soared 346% .
Year

Number of
Banks

1951
1952

83
90

Number of
Transactions

817
1926




TO MEMBER BANKS

(Based On Peak Borrowings Each Week)
M illions of Dollars

Aggregate
Borrowings

$1,279,438,000
$5,705,742,000

Easing o f inflationary pressures during the
year permitted the lifting o f restrictions on
instalment credit in M ay (Regulation W au­
thority terminated June 30, 1952) and sus­
pension o f real estate credit restraints (R eg u ­
lation X ) in September.
T h e Consumer
Credit Department was dissolved and its
residual functions w ere assumed b y the Dis­
count and Credit Department.
T h e V -lo a n program, under which Reserve
banks handle applications for G overnm ent

18

ADVANCES

guaranteed loans fo r defense and defenserelated purposes, slowed considerably during
1952. O n ly six applications involving $891,000
were approved and the credits made available
as against 19 totaling $6,206,100 the previous
year.

M ost o f the activity in the Research D e ­
partment o f the Federal Reserve Bank o f
R ichm ond during

1952—as during previous

years—was devoted to collecting, editing, ana­
lyzing

and trying

to

make

intelligible

or

meaningful those drab symbols com m only re­
ferred to as statistics.

ECONOMIC RESE

T h e Research Department staff o f econ o­
mists and statisticians is responsible fo r gather­
ing primary data from banks, industrial co n ­
cerns, department stores, and the like, and,
after collection, passing on the results in read­
able form . Some o f the releases are w eekly,
some m onthly, and others are on an annual
basis.
T hree areas o f service to w hich data are
directed are:
(1 ) T h e Board o f G overnors in
W ashington—where the transmitted data
frequently becom e a part o f the national
figures, periodically released and w idely
used b y business men as a measure o f
past perform ance and a guide to current
trends and possible future developments.
(2 ) This bank’s ow n directors and
officers—fo r their inform ation and use
both in day-to-da y operations and in
p olicy determination.
(3 ) M em ber banks, business firms,
colleges and universities—chiefly within
the five-state area that comprises the
Fifth Federal Reserve District, but also
in many areas throughout the U nited
States and in foreign countries as well.
Some statistics on the field o f w ork w hich
occupies Researchers’ time may be used to
etch a clearer mental picture o f the nature
and scope o f the Research Department as it
functions: D uring 1952, 1,228 respondents
provided the bank with figures on such mat­




ters as bank debits in some thirty cities,
w eekly changes in business loans, business
permits, retail trade, and department, furni­
ture and household appliance stores. O n the
outgoing side, tabulations, w ith or w ithout
interpretation or editorial com m ent, w ere
periodically sent out to some 2,800 individuals
and firms.
T w o publications—the
and
constitute the regular
media b y w hich the bank, through the R e ­
search Department, endeavors to provide e c o ­
nom ic and financial inform ation fo r m em ­
ber banks, business, and interested individuals.
During 1952, the
printings
totaled more than 80,000, and
more than 60,000. In addition, exten­
sive research on the part o f the agricultural
economists for a period o f nearly tw o years
was involved in the publication (in N ovem b er
1952) o f the 170-page booklet, “ Flue-Cured
T o b a c c o —A n E con om ic Survey” . M ore than
1,500 copies have already been distributed, not
only in the Fifth District but throughout the
U nited States and a number o f foreign cou n ­
tries as well.
In addition to form ulating the printed
w ord —as evidenced b y the above regular pub­
lications and numerous newspaper releases
throughout
the
District—Researchers
re­
sponded to hundreds o f requests—telephonic,
mail, and otherwise—in other w ords, played a
sort o f econom ic “ Inform ation Please” .

Agricultural Items—

lte?ns

Monthly Review

M onthly Review's
Agricultural

I

p

e

:f l s

o

is n s r iE

T h e continuing improvement in the District’s busi­
ness, making jobs o f all kinds more plentiful, and the
step-up in the bank’s service activity, making more
w ork to be done here, com bined to increase the prob­
lems o f the department directly concerned with re­
cruiting the people to do the w ork, the Personnel
Department. W h ile net employment rose b y only
30 persons during 1952, there were total additions
o f 298—171 at Richm ond, 83 at Baltimore, and 44
at Charlotte.
T h e recruiting o f new people is but one part o f
the com plex function o f the Personnel Department,
w hich is concerned also with making the bank “ a
g o o d place to w o rk ” .
This department, among
many things, administers salary schedules, conducts
a continuing job evaluation and merit rating program,
maintains detailed records for all staff members, and
operates the health service and the cafeterias. (These
are m ajor projects in themselves. T h e head office
infirmary, with tw o registered nurses, logged 12,652
visits; Baltimore and Charlotte, each with one regis­
tered nurse, had 3,279 and 1,870 respectively. Some
171,313 meals and snacks were served at the head

P R O

T E C T I O

N

O ne day last summer a telephone repair man,
threading a maze o f lines in one o f the upper floors,
tapped the w ron g wire and set o ff the bank’s emer­
g en cy alarm. It was, o f course, a false alarm, but
within the fewr seconds before the reassuring allclear was passed the entire Protection force had
gone into action, every guard at his em ergency sta­
tion, firearms at the ready. N o t a planned drill, it
could have been the real thing—and the Protection
force was prepared.
D ay and night the picked men o f the Protection
Department are always prepared.
Most o f them
form er servicemen and many o f them recognized
marksmen, they are skilled in the use o f a variety
o f weapons kept in several “ arsenals” throughout
the bank—revolvers, riot guns, submachine guns, teargas guns, and gas grenades.
N erve-cen ter o f the Protection organization is a
new, intricate central control station located in a base­
ment room , headquarters o f an intercommunication
netw ork connected to posts in all sections o f the
20




office, 1 15,025 at Baltimore, and 39,220 at
Charlotte.)
In addition, the Personnel Department joins
with the Em ployees Council in sponsoring em­
ployee activities.

bank’s three buildings. In an em ergency the
entire force can be alerted and directed in a
matter o f seconds.

T h e most significant feature o f Federal
Reserve Bank operations in the past year was
the increased reliance o f member banks on
borrow ing in lieu o f sales o f securities as a
means o f adjusting reserve accounts. Earn­
ings o f the Federal Reserve Bank o f R ich ­
m ond from advances to member banks
jumped from S i65,000 in 1951 to $705,000
in 1952.
W ith inflationary pressures rather quiescent
during the year, Federal Reserve policy was
essentially one o f mild restraint and limited
operations. T h e result was a
fairly steady pressure on bank reserves and a
generally tight m oney market. W hereas R e­
serve System purchases o f securities provide

Open Market

amounted to about 90 per ccnt o f net earn­
ings after a modest addition to the co n ­
tingency reserve and payment o f the dividend
to member banks (limited b y law to 6 per
cent o f stockholdings). T h e payment repre­
sented interest on Federal Reserve notes in
circulation not secured b y gold certificates.
T h e charge is levied b y the Board o f G o v ­
ernors pursuant to authority granted b y C on ­
gress in connection with the delegation o f
authority to issue such notes.
From the Comparative Statement o f C on ­
dition, shown on the follow in g page, it will
be observed that at year-end 1952, total
assets had increased b y $191,000,000 to
$3,132,000,000, largely as a result o f an in-

I ’T N A S C RE SULTS
F H L J T j. J
XA L
OF T
I *
IH
E YEAR’S OPERATIONS
commercial banks with “ permanent” reserves,
borrow in g b y com m ercial banks is usually a
temporary device, both because o f the pur­
poses fo r which Federal Reserve credit is
available and because o f the reluctance o f
banks to borrow . Thus, circumstances w hich
dictate borrow in g instead o f sales o f securities
exert a restraining influence on credit expan­
sion.
Bank preference fo r borrow ed reserves was
induced in part, undoubtedly, b y the favor­
able “ spread” that prevailed during much o f
the year between the yield on Treasury bills
and the rediscount rate. W 7
hile the form er
fluctuated between 1.51 and 2.23,7 the y
yield
was generally above the 1.75 rate maintained
on borrow ings from the Reserve banks.

$20,000,000 Paid To Treasury
Probably the second most interesting fea­
ture o f the Comparative Statement o f Earn­
ings and Expenses is the $20,000,000 pay­
ment to the United States Treasury. T his




crease in cash assets o f $72,000,000 and in
Governm ent securities o f $55,000,000.
On
the liability side, Federal Reserve notes in
actual circulation rose $102,000,000 and m em­
ber bank reserves w ere up $31,000,000.

i

Paid-In Capital Increased
W h ile holdings o f G overnm ent securities
were increased on ly moderately, there was a
substantial shift in the com position o f the
account, particularly from certificates to the
longer-term notes. T h e larger holdings and
higher yield o f the account w ere reflected in
larger earnings, o f course, and also in “ other
assets” , which includes accrued interest.
T h e increase in bank premises represents
expenditures fo r the new building, renovation
o f other quarters and additions to equipment.
Paid-in capital was increased b y $631,000,
as member banks added m ore than $20,000,000 to their capital and surplus accounts.
This bank’s surplus (Section 7) was increased
$2,223,000 from earnings fo r the year.

21

C O M P A R A T IV E STA TEM EN T OF C O N D IT IO N
Assets

December 31, 1952

G o ld c e r tific a t e s ................................................................................. $
Redem ption Fund for Federal Reserve notes

.

.

.

9 8 6 ,3 4 7 ,7 1 0 .8 6

$

9 2 8 ,6 2 0 ,6 1 2 .5 6

7 6 ,7 3 2 ,2 5 8 .2 6

66,2 1 4 ,1 4 0 .7 8

O ther c a s h ..............................................................................................

2 7 ,6 1 6 ,0 7 1 .8 2

23 ,8 8 5 ,6 7 3 .2 0

A dvances to m em ber b a n k s ........................................................

5 ,7 0 4 ,5 0 0 .0 0

2,340,000.00

55,9 7 2 .8 9

93,841.42

Industrial

.

December 31, 1951

l o a n s ................................................................................

U . S. G overnm en t—B i l l s ..............................................................

50 ,1 4 8 ,0 0 0 .0 0

31,110,000.00

-C e r t ific a t e s ..................................................

337 ,6 5 0 ,0 0 0 .0 0

846,097,000.00

- N o t e s ........................................................

9 3 0 ,9 3 5 ,0 0 0 .0 0

336,991,000.00

- B o n d s ........................................................

305 ,6 3 1 ,0 0 0 .0 0

355,347,000.00

Due from foreign b a n k s ...............................................................
Federal Reserve notes o f other Reserve banks .
U n collected

.

.

i t e m s ...........................................................................

1,157.07

1,409.74

5 0 ,7 1 0 ,3 2 0 .0 0

.

4 8 ,7 9 6 ,4 1 0 .0 0

344,44 9 ,2 7 5 .4 8

287,819,855.05

.................................................................................

4 ,8 3 9 ,1 0 5 .4 9

4 ,1 1 0 ,7 8 4 .4 0

Other a s s e t s .......................................................................................

10,887,104.00

8,840,545.72

Bank premises

T o ta l A s s e t s .....................................................................$3,1 31,707,475.87

$2,940,268,272.87

Liabilities
M em ber bank reserve a c c o u n t s .................................................. $

8 4 9 ,0 2 4 ,5 5 8 .8 6

$

848,054,375.71

U . S. Treasurer—general a c c o u n t ............................................
Foreign d e p o s i t s .................................................................................

28,743,41 3.17
2 6 ,6 9 8 ,5 0 0 .0 0

539,238.59
26,025,000.00

O ther d e p o s i t s .................................................................................

7,707,068.83

6,56 8 ,9 2 4 .8 0

T o ta l D e p o s i t s ..............................................................

9 1 2 ,1 7 3 ,5 4 0 .8 6

8 8 1 ,187,539.10

Federal Reserve notes in actual c i r c u l a t i o n .........................

1 ,8 8 7 ,0 6 2 ,6 1 0 .00

1 ,7 8 5 ,153,400.00

D eferred availability ite m s ...............................................................

2 8 0 ,7 9 1 ,1 8 0 .3 4

225,1 8 3 ,6 5 2 .7 8

li a b i l i t i e s .................................................................................

689,2 4 0 .9 3

661,336.25

T o tal L i a b i l i t i e s ...............................................................

O ther

3,080,716,572.1 3

2,8 9 2 ,1 8 5 ,9 2 8 .13

Capital Accounts
Capital paid i n .......................................................................................

1 1 ,013,750.00

10,382,900.00

Surplus (Section 7 ) ...........................................................................
Surplus (Section 1 3 b ) .....................................................................

29,24 7 ,9 3 7 .1 2
3,349,144.81

27,024,687.76
3,349,144.81

O ther capital a c c o u n t s .....................................................................

7,380,071.81

7,325,612.17

. $3 ,1 3 1 ,7 0 7 ,4 7 5 .8 7

$2,940,268,272.87

T o tal L iabilities and C apital A c c o u n ts .

.

Contingent liability on acceptances purchased for foreign
co rre sp on d e n ts....................................................................... $
C om m itm en ts to m ake industrial l o a n s ................................... $

22




1,009,398.56

$

1,069,095.38

70,422.37

$

63,515.06

C O M P A R A T IV E ST A T E M E N T OF E A R N IN G S A N D EXPENSES

1952

Earnings
D iscount on advances to member banks . . . .
Interest and commitment fees on industrial loans .
Interest on U. S. Governm ent securities . . . .
Other e a r n i n g s .............................................................

.
.
.
.

.
.
.
.

.

.

30,358,189.74

26,010,437.06

Operating expenses (less reimbursements for certain
Fiscal A g e n cy and other e x p e n s e s ) ...................... . .
Assessments for expenses o f Board o f G overnors . . .
Cost o f Federal Reserve c u r r e n c y ............................ . .

6,386,630.07
209,100.00
964,783.72

5,593,754.61
206,000.00
856,219.61

T otal N et E x p e n s e s .......................................

.

.

7,560,513.79

6,65 5,974.22

C urrent N et E a r n in g s ..................................

.

.

22,797,675.95

19,354,462.84

Profits on sales o f U. S. G overnm ent securities .
Sundry a d d it io n s .......................................................

.
.

.
.

130,497.44
1,693.10

—
1,255.63

T o t a l ..................................................................

.

.

22,929,866.49

19,355,718.47

.

.

—
2,225.08

101,555.33
10,487.56

.

.

$ 22,927,641.41

$ 19,243,675.58

.
.
.
.

.
.
.
.

$

$

.

.

T otal C urrent E a r n i n g s ...........................

$

705,515.15
4,850.93
29,640,766.84
7,056.82

1951
$

165,422.47
7,857.20
25,827,614.62
9,542.77

Expenses

Add:

Deduct:
Losses on sales o f U. S. G overnm ent securities .
Sundry d e d u c t i o n s ..................................................

N et E a r n i n g s ..................................................................
Disposition of N et Earnings
Transferred to reserves for contingencies . . . .
Dividends paid member b a n k s .................................
Paid Treasurer o f U. S. (Interest on F. R. notes) .
A ddition to Surplus A ccou n t (Section 7) . . . .
T o t a l ..................................................................

55,180.93
643,140.74
20,006,070.38
2,223,249.36

$ 22,927,641.41

54,664.22
610,303.89
16,720,823.44
1,857,884.03

$ 19,243,675.58

SURPLUS A C C O U N T (Section 7)
Balance at close o f previous y e a r .................................
Addition account o f earnings fo r y e a r ......................
B a la n c e a t C lo s e o f C u r r e n t Y e a r

.

.

.
.

.
.

.

.

$

27,024,687.76
2,223,249.36

$ 25,166,803.73
1,857,884.03

$ 29,247,937.12

$ 27,024,687.76

C A P IT A L STOCK A C C O U N T
(R epresen tin g am ount paid in, w hich is 50% o f am ount sub scribed)

Balance at close o f previous v e a r .................................
Issued during the y e a r .......................................................

.
.

.
.

$ 10,382,900.00
638,350.00

Cancelled during the y e a r ............................................

.

.

11,021,250.00
7,500.00

10,435,850.00
52,950.00

.

.

$ 11,013,750.00

$ 10,382,900.00

B a la n ce a t C lo s e o f C u r r e n t Y e a r




.

.

$

9,845,300.00
590,550.00

23

DIRECTORS
FEDERAL RESERVE S A N K OF R IC H M O N D

OFFICERS
HUSH LEACH
President

DIRECTORS

J. S. WALDEN, JR.
First V ice President

EDWARD A. WAYNE
CHARLES P. McCORMICK
C h a irm a n o f the Board
and
Federal Reserve A g e n t

JOHN B. WOODWARD, JR.

R. W. MERCER

> ice President and C ashier
V

r
C. B. STRATHY

\
V ice President

R. L. CHERRY
D eputy C h a irm an o f the Board

V ice President

\
V ice President

K. BRANTLEY WATSON
I
CHARLES W. WILLIAMS

\
V ice President

\
Vice President

>
N. L. ARMISTEAD

JAMES D. HARRISON
President
F irst N a tio n a l Bank o f Baltim ore
B a ltim o re , M a ryla n d

EDWIN HYDE
Executive Vice President
M ille r and Rhoads, Inc.
Richm ond, V irg in ia

WARREN S. JOHNSONI
In ve stm e n t Counselor
Peoples Savings Bank & T rust
Com pany
W ilm in g to n , N o rth Carolina

CHARLES P. McCORMICK

\
V ice President

t
DONALD F. HAGNER

V ice President

UPTON S. MARTIN
THOMAS I. STORRS

t ssista n t V ice President
A
/ ssista n t V ice President
A

J. DEWEY DAANE
t ssista n t V ice President
A
EDWARD WALLER, JR.
/
A ssista n t C ashier
JOSEPH M. NOWLANI
A ssista n t Cashier

WYTHE B. WAKEHAM1
President and C h a irm a n o f the Board
M cC o rm ick & Com pany, Inc.
B a ltim o re , M a ryla n d

CARY L. PAGE
President and Treasurer
Jackson M ills
W e llfo rd , South C arolina

H. L. RUST, JR.
President
H. L. Rust Com pany
W a sh in g to n , D. C.

/ ssista n t Cashier
A

JAMES W. DODD, JR.

j
A ssista n t Cashier
I
JOHN L. NOSKER
I
A ssista n t Cashier
R. S. BROCK, JR.
( eneral A u d ito r
G

»
G. HAROLD SNEAD

AUBREY N. HEFLIN

( h ie f Exam iner
C
Counsel

JOHN A. SYDENSTRICKER
I
Executive Vice President
First N a tio n a l Bank in M a rlin to n
M a rlin to n , W est V irg in ia

JOHN B. WOODWARD, JR.
President
N e w p o rt News S hipbuilding and Dry
Dock Com pany
N e w p o rt News, V irg in ia

W. G. WYSOR
M a n a g e m e n t Counsel
Southern States Cooperative, Inc.
Richm ond, V irg in ia

MEMBER FEDERAL ADVISORY COUNCIL
ROBERT V. FLEMING




INDUSTRIAL ADVISORY COMMITTEE
J. G. HOLTZCLAW

OVERTON D. DENNIS
ROSS PUETTE

D o m in io n O il Com pany
Richm ond, V irg in ia

President
C a rolin a Paper Board C o rporation
C h a rlo tte , N o rth C a rolin a

WALKER D. STUART

JOHN L. WHITEHURST
President and C h a irm a n o f the Board
The Riggs N a tio n a l Bank
W a sh in g to n , D. C.

C h a irm a n
President, V irg in ia Electric and Power
Com pany
Richm ond, V irg in ia

President
Richm ond H ardw are Com pany
Richm ond, V irg in ia
President and Treasurer
B u rt M a ch in e C om pany, Inc.
B a ltim o re , M a ry la n d

_A_3 STID

OFFICERS

F O R

1

9

5

3

BALTIMORE BRANCH
DIRECTORS
ALONZO G. DECKER, JR.
Vice President
The B lack & Decker M a n u fa c tu rin g
C om pany
Towson, M a ry la n d

CHARLES W. HOFF

President
The U nion T ru s t C om pany o f
M a ry la n d
B altim o re , M a ry la n d

CHARLES A. PIPER
President
The L ib e rty T ru s t C om pany
C u m be rla n d , M a ry la n d

LACY I. RICE
President
The O ld N a tio n a l Bank
M a rtin s b u rg , W e st V irg in ia

JAMES M. SHRIVER
President
The B. F. S hriver C om pany
W e stm in ste r, M a ry la n d

HOWARD M. TAYLOR, JR.
V ice President
In te rn a tio n a l Bedding C om pany
B altim o re , M a ry la n d

OFFICERS
DONALD F. HAGNER
V ice President

A. A. STEWART, JR.
C ashier

A. C. WIENERT

STANLEY B. TROTT
President
M a ry la n d T ru s t C om pany
B altim o re , M a ry la n d

A ssista n t Cashier

B. F. ARMSTRONG
A ssista n t C ashier

CHARLOTTE BRANCH

DIRECTORS
GEORGE S. CROUCH

C h a irm a n o f the Board
U nion N a tio n a l Bank
C h a rlo tte , N o rth C a rolin a

ARCHIE K. DAVIS

Senior V ice President
W a ch o via Bank and T ru s t C om pany
W in sto n -S a le m , N o rth C a rolina

R. E EBERT
.

President
D ixie Hom e Stores, Inc.
G ree n ville , South C a rolin a

OFFICERS
R. L. CHERRY
Vice President

S. A. LIGON
C ashier

R. L. HONEYCUTT
A ssista n t Cashier

E C. MONDY
.




A ssista n t Cashier

THOMAS J. ROBERTSON

President
First N a tio n a l B ank o f South C a rolin a
C o lu m bia, South C a rolin a

PAUL T. TAYLOR

President
T a y lo r W arehouse C om pany
W in sto n -S a le m , N o rth C a rolina

JONATHAN WOODY

President
First N a tio n a l B ank
W a yn e sville , N o rth C a rolina




I.ITilO.ilt AI'HKI) IN I. S A in TIIK li A H AN CUM AV)
. .
I UM
I’






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