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I9S4 A N N U A L




REPORT

FEATURING THE EALTIMORE BRANC




FORTIETH ANNUAL SEPOGT
FEDERAL RESERVE S A N K Of RICHM OND
■

BRANCHES IN BALTIMORE

AND C H A R L O T T E

1354






T his Fortieth A n n u a l R e p o rt of the F e d e ra l R e se rve
Bank

of

B ra n ch .

R ic h m o n d

is

d e d ic a te d

to

our

B a ltim o re

O n the c o v e r is a n a rtis t's re p re s e n ta tio n of

the B ra n c h 's g re a t b ro n z e d o o r, a n d o n p a g e s f o llo w ­
in g a re articles a n d p ic tu re s tha t a tte m p t to tell s o m e ­
th in g o f the w o r k th a t g o e s o n b e h in d this d o o r a n d
of the e c o n o m y o f the te rrito ry th a t the B ra n c h se rve s.
It is h o p e d that this d e p a r t u r e fr o m

the " s t a n d a r d "

a n n u a l re p ort w ill p ro v e o f in te re st not o n ly to tho se
of y o u w ith in the B a ltim o re B ra n c h te rrito ry but a ls o
to y o u in oth e r p a rts o f the Fifth D istrict w h o sh a r e
o u r p rid e in o u r a s so c ia tio n w ith th a t a re a .
A n o th e r ye a r our A n n u a l

R e p o rt w ill fe a tu re o u r

C h a rlo tte B ra n c h a n d its te rrito ry.
O n oth e r p a g e s o f this re p o rt a re a b rie f re v ie w o f
b u sin e s s a n d

b a n k in g

in the

Fifth

D istrict in

1 95 4 ,

so m e notes o n the e x p a n d i n g o p e r a t io n s o f this F e d ­
e ra l R e se rve B a n k , a n d

o u r c o m p a r a t iv e sta te m e n ts

o f co n d itio n a n d o f e a r n in g s a n d e x p e n s e s .
O n c e a g a in , fo r the d ire c to rs, o ffic e rs, a n d sta ff o f
this b a n k I e x te n d t h a n k s to y o u , o u r sto ck h o ld e rs,
fo r y o u r c o o p e ra tio n d u r in g the p a s t y e a r.

I a ssu re

y o u th a t w e sh a ll c o n tin u e to s e rv e y o u to th e best o f
o u r a b ility .
V e r y tru ly y o u r s,

P re sid e n t




A v ig n e tte o f the a r e a s e rv e d b y the B a ltim o re B ra n c h
of the F e d e ra l R e se rv e B a n k o f R ic h m o n d

Reaching westward from the Atlantic
across the Chesapeake Bay and over the
Alleghenies to the broad Ohio and from the
Potomac on the south to Mason and Dixon’s
line on the north, the territory served by

the Baltimore Branch of the Federal Re­
serve Bank of Richmond is an area rich in
its history and rich in its present.
The area comprises the entire state of
Maryland and 30 of West Virginia’s 55
counties. It covers some 22,600 square
miles. Its population is upward of 3,000,000 .

Diversity is a marked characteristic of
the area, in industry, commerce, agricul­
ture. and, for that matter and for another
illustration, in its institutions of higher edu­
cation: many excellent privately endowed
schools, two great state universities, and
the United States Naval Academy at An­
napolis.

Baltimore - City of Industry
The largest city of this thriving and en­
terprising segment of America is the great
city of Baltimore, some 300 years old.
proud o f its past but prouder of its present;
a city of bustling industry, commerce, and
finance; a city whose people have always
looked toward the future.
Even in the old days, Baltimore business­
men weren’t ones to sit by idly when any­
thing threatened their livelihood. Back in
1827 a group of business leaders in that city
met together one day to consider ‘ ‘the best




means o f restoring to the city o f Baltimore
that portion o f western trade which has
lately been diverted from it by the intro­
duction o f steam navigation and by other
causes.” How well they succeeded a cen­
tury and a quarter ago is attested by his­
tory. One o f the immediate results o f that
early “ Baltimore Association of Commerce”
meeting was the founding of the Baltimore
& Ohio Railroad. Operating over thirteen
miles of track running west from Baltimore
in 1830, the B&O has a substantial claim
to being one o f the first, if not the first,
railroads in the country.
The success that attended subsequent
attempts to promote the econom ic progress
of the Baltimore area is reflected in a glit­
tering list o f achievements. Illuminating
gas was first used in Baltimore. . . . the first
telegraph line was erected and operated
between Baltimore and Washington. . . . the
great-grandfather o f the Empire State
Building and all other skyscrapers was a
five-story cast-iron b u i 1 d i n g daringly
erected in Baltimore. . . . the first electric
streetcars picked up fares on a Baltimore
street. . . . and one o f the nation’s most
popular industries, the ice cream industry,
had its birthplace in this old city.
The payrolls o f almost 2,000 manufac­
turing enterprises are the best proof o f the

Sparrows Point plant has an annual capacity of 6,000,000




to n s of steel

Q
O

B a ltim o re b o u n d fre ight
c ro ssin g Potom ac from
W e st V ir g in ia to M a r y la n d

success of more recent meetings and en­
deavors to promote the business welfare o f
the Baltimore Metropolitan Area. There
are nearly 200,000 workers on these pay­
rolls receiving an annual income of $827
million. And they are in some of the bestpaying industries in the country. O f the
eight leading industries in the area, ac­
counting for about 81% of total manufac­
turing employment, six have national aver­
age hourly earnings that exceed the nation­
al average for all manufacturing workers.
Another feather in the industrial cap of
Baltimore is the diversification o f its manu­
facturing structure. O f the 280 separate
industries listed for Maryland in the Cen­
sus of Manufactures, 249 are reported to be
represented in the Baltimore area. Unlike
the heavy concentration o f employment in
a single industry that is characteristic of a
number o f the nation’s metropolitan cen­
ters, Baltimore’s m ajor industries range
over a wide area o f activity— from pro­
ducers’ durable equipment to consumers’
nondurable items. No one industry group
accounts fo r as much as 20 % o f total manu­
facturing employment, and the three lead­
ing industries— primary metals, transpor­
tation equipment, and food products— pro­

4




vide jobs for less than 50% of all manufac­
turing employees.
Making up Baltimore’s manufacturing
structure are some o f the largest plants in
their industries in the world. Here are
located the w orld’s largest manufacturer
of portable electric tools. . . . the largest
plant in the world devoted entirely to the
production o f stainless steel . . . the largest
producer o f crown bottle caps and closures
in the world. . . .the w orld’s largest plants
making spices, Venetian blinds, paint
brushes, weather instruments, long distance
telephone cable, superphosphates, bichro­
mate, and porcelain insulators. . . .the larg­
est meat-packing and steel-making plants
on the Eastern Seaboard are in Baltimore
. . . the second largest copper refinery in
the world.
One of the consequences o f the Baltimore
area’s industrial diversification is an ap­
parently narrower range o f fluctuations of
economic activity during periods o f general
expansion or contraction than is the case
in most other metropolitan areas. For ex­
ample, from 1929 through the depression
o f the early Thirties to 1939, value added
by manufacturing in Baltimore increased

lhree oulomolic coal-loading piers in Port of Baltimo
can load ships at o rate of 9,7 0 0 tons on hour.
Ecich con handle two ships at the some time.
More lhan 1,0 0 0 000 Ions ore exported yearly




4 .6 % , whereas it declined in the great ma­
jority o f metropolitan areas. From 1939
to the last Census of Manufacturers in
1947, on the other hand, Baltimore’s gain
lagged behind those of most of the other
large industrial areas. The net result over
the entire 18-year period was that Balti­
more realized greater growth, as measured
by value added by manufacturing, than all
but a few of the standard metropolitan
areas in the nation.

The Proof of the Pudding
Baltimore does not take its industrial ad­
vantages and leadership position for
granted. It realizes that in this era of
competitive industrialization, it must be
dynamic. Its industrial structure must
always be “ under construction.” It can
never be a completed project. It must be
forever changing with growth coming from

Oro corner discharging




of B a lt im o r e pier

within and from outside sources. One of
the most striking features of the shifts
among the components of national income
in the quarter-century follow ing 1929 was
the large increase in the relative impor­
tance of manufacturing. O f all the various
industry groups— construction, trade, min­
ing, finance and real estate, etc.— income
from manufacturing activities had the larg­
est percentage increase during the 25-year
period. Area participation in this growth
required constant investment in new manu­
facturing plant and equipment— by new
companies coming into the area and by ex­
pansion of existing firms.
One o f the many services ably perform ed
by the Industrial Bureau o f the Baltimore
Association of Commerce is keeping track
o f (and securing!) such investment. As
shown in the accom panying chart, plotted
from data gathered by the Bureau, this in­

vestment has fluctuated from year to year,
plumbing a low in the middle o f the Great
Depression and skying to an all-time high
in 1952. But it has never let up, and as a
consequence the Baltimore area now has
almost double the number o f persons on
manufacturing payrolls it had in 1929.

Down to the Sea in Ships
There is a cosmopolitan air about Balti­
more— and why not? A fter all, it is one
of the great ports of the w orld. Its 30
miles o f waterfront, lined with piers, ware­
houses, and cargo-handling equipment,
reach into cities all over the world. And
its maritime facilities make it a neighbor
of the great agricultural centers and inland
industrial cities of the nation that carry on
extensive foreign trade. This port has been
a vital factor in enabling Maryland to
achieve an economic ranking among the

states of the Union well beyond that which
might be associated with its comparatively
small size. Indeed, this magnificant port
has long been the principal reason why
many firms chose to locate in Baltimore or
in other areas of Maryland. It has been
estimated that the port adds as much as
$200 million to the city’s annual income.
All told, there are some 270 piers,
wharves, and docks to handle the 20 mil­
lion tons o f foreign commerce as well as the
coastwise domestic traffic that passes
through the Port of Baltimore. Included
among these facilities are modern, impressive-size coal-loading piers and ore-discharging docks that can handle aggregate
loads up to 9,700 tons an hour. Other fa cil­
ities include three huge exports grain
elevators with a total capacity of 12 million
bushels, specially-equipped warehouses,

o n g e st o v e r-w a te r




7

and modern cold storage facilities.
An integral part of the port are 12 ship­
building and ship repair yards. These
yards can perform all types of work rang­
ing from the construction of super-tankers
and high-speed ore carriers to complex
engine and hull repairs.
Together with its multiple-trunkline rail­
road facilities and its great Friendship In­
ternational Airport, the seaport gives the
Baltimore area transportation facilities
and services that measure up to the most
exacting requirements of any business or
industry.

The Tie That Binds
Money, the great facilitator, seeks its
level in the ebb and flow o f commerce and
industry. Paralleling the growth in manu­
facturing and in trade, Baltimore’s finan­
cial institutions have shown the strength
and vigor needed to provide the highly
sought wherewithal to support the rapid
expansion of production equipment, of
plant space, o f inventories; as well as the
credit needs of individual consumers. The
area’s commercial banks, mutual savings
banks, savings and loan associations, in­
surance companies, sales finance com ­

panies, securities dealers, and organized
exchanges have not only efficiently gar­
nered the savings o f local individuals and
business firms, but have also channeled
into the area from all parts o f the nation
the funds needed to meet the ever-developing credit needs o f its individual and busi­
ness citizens. In the process, Baltimore
has become one o f the top-ranking financial
communities in the nation. As measured
by total assets o f all o f its banks, Baltimore
is first in the Fifth Federal Reserve District
— its banking assets amount to $1.7 billion.
The Richmond Reserve Bank’s Baltimore
Branch was established in order to handle
more efficiently the vast quantity and
variety o f transactions flowing through this
center. This branch now has direct deal­
ings with all member banks in the state of
Maryland and about half o f those in West
Virginia. Thus, added to the financial
transactions indigenous to the trade and in­
dustry o f the Baltimore area, are literally
billions o f dollars o f payments and other
transfers o f funds facilitated by the Fed­
eral Reserve outlet there.

Ships and Shoes and S e a lin g W a x
Baltimore is the biggest city of the ter-

M o r e th a n 8 ,0 0 0 to n s o f co a l a re o n w a y
d o w n M o n o n g a h e la R iv e r

S e a m of b it u m in o u s coal in
m in e n e a r M o r g a n t o w n , W e st V ir g in ia
is o v e r e ig h t feet in d epth

8




Aircraft plant n e a r Baltim ore

H u ge c a rg o a n d transport planes
are m a d e in plant at
H agersto w n, M a r y la n d




9

Just above this rural region, at the door­
step of the nation’s capital, is one o f Mary­
land’s most heavily populated regions. In
the 330 square miles which the State As­
sembly has designated as the MarylandWashington Regional District dwell more
people than in any other area o f the state
except Baltimore. Unincorporated Silver
Spring alone had a population o f 117,000
at the beginning of 1954.

ritory served by the Baltimore “ F ed," to be
sure, but it has no monopoly as a center of
economic importance. There are other
cities whose industry, commerce, and sur­
rounding agricultural production make
significant contributions to the American
scene. For instance:
On M aryland’s Eastern Shore, reached
from Baltimore via the new (1952) $45,000,000 Chesapeake Bay bridge, longest
over-water steel bridge in the world, are a
wide variety of enterprises. In and near
its two principal cities, Salisbury and Cam­
bridge, are more than three-score indus­
tries, some employing 500 to 700 persons.
Canning o f food in huge quantity is a m ajor
industry, and other principal products in­
clude men’s clothing, boats, steel and cop­
per woven wire, building materials, and
cans and crates. Particularly important
in Eastern Shore economy is the production
o f poultry and truck crops.

And O n W estw ard
Small city industry is scattered through­
out the state. In Elkton, in the north, are
plants manufacturing spark plugs, radios,
explosives, hosiery, paper, and, among
other things, rubber toys. In Hagerstown,
toward the west, is one o f the country’s big
aircraft manufacturers, and among the
city’s 75 or more industries are plants mak­
ing shoes, leather, furniture, hosiery, steel
castings, and canned goods.

Back across the bay, in southern Mary­
land, farming is a mainstay in the economy.
Here is the home of Maryland tobacco, a
unique weed that is used in almost every
brand of cigarettes, and here too are some
o f the state’s many farms where thorough­
bred horses are raised. Farming is a big
business in all of Maryland.

Still farther west in Cumberland, Mary­
land’s second city, are one of the country’s
large synthetic fiber plants and a sizable
tire manufacturing concern. Cumberland
is also an important railway center, with
shops employing hundreds o f persons.
Between Hagerstown and Cumberland,
Maryland narrows to a strip about five

Investments in New Plants and Expansions

m il l io n s

B

a l t i m o r e

of do llars

1□ □
7 5

5 □

_

1934

1936

1938

1940

1942

1944

Source, industrial Bureou, Baltimore Association of Commerce

10




1946

1948

1950

1952

1954

m e t r o p o l i t a n

a r e a s

Big bu sine ss
in M a r y la n d is
ca n n in g of hu ge
tom ato crops

miles wide, with W est Virginia’s eastern
panhandle intruding almost to the Penn­
sylvania line. In this W est Virginia region
are Martinsburg and Berkeley Springs, the
latter a spa known to George Washington
200 years ago and at present a leading pro­
ducer o f fine glass-making sand.
Glass manufacture is an important busi­
ness in the Baltimore “ F ed” territory—
some o f the finest hand-blown glassware in
the country comes from plants at Morgan­
town and W eston; Clarksburg makes most
o f the w orld ’s marbles and its six large
glass plants produce important amounts of
sheet glass, windows, instruments, table­
ware, and other items; Fairmont makes
glass containers and lamps; and Parkers­
burg has several glass factories employing
from 300 to 600 persons.
In M organtown are a chemical plant and
a faucet manufacturing concern, each em­
ploying about 1,000 persons, three textile
firms em ploying more than 600, and one
o f the w orld ’s largest coal mines. The U.
S. Bureau o f Mines has lately com pleted
a $3,000,000 experiment station at M organ­
town, and at the state university, located
here, work is progressing on a $30,000,000
medical, dental, and nursing school.
Fairmont, at the center o f one o f the na­




tion’s biggest bituminous coal fields, with
estimated reserves o f five and a half billion
tons or enough to last 300 years at the pres­
ent rate o f consumption, is a leading pro­
ducer of coal, aluminum, mining machin­
ery, and coal-tar products.
Clarksburg produces graphite electrodes
fo r the steel industry, zinc products, pot­
tery, concrete, w om en’s wear, machine
tools, cans, and processed wires.
Parkersburg has some 125 industrial
plants, which em ploy more than 13,000
persons and have an annual payroll o f more
than $45,000,000. Am ong its biggest in­
dustries are synthetic fibers, with one plant
employing more than 1,500 and others em­
ploying from 600 to 1,500. The city is an
important producer of dies and tools, elec­
trical procelain, tile, oil and gas well
equipment, structural steel, pigments and
dyes, and other chemical products.
Binding this whole structure together,
providing the capital to keep it going and
expanding, is the banking system. Through
its member banks, whose total resources
are more than $1.7 billion, the Baltimore
Branch of the Federal Reserve Bank of
Richmond serves the industry, commerce,
and agriculture of the area.

11

Baltim ore B ra n c h 's First H o m e

%

ss »

•

hH R . B R
r R p
B B
HR (in RR BB
Sketch s h o w s h o w B ranch b u ild in g
w ill look at com pletion of new e xp a n sio n
project that w ill b e g in in 1955

12




RB

One

P re se nt B ra n c h B u ild in g

of

th re e

p h o t o -m u r a ls
lobby,

this

in

shows

M a ry la n d 's f a m e d
M iddletow n

Valley

As in most Federal Reserve Banks, there
is a deceptively placid appearance about
the lobby, or main banking room, of the
Baltimore Branch o f the Federal Reserve
Bank of Richmond.

Ordinarily there is

only a moderate flow o f traffic to be seen,

B a lt im o r e 's

busy

w a te rfro n t

and

metropolitan

sky­

line are f e a t u r e d
in a n o t h e r

mural

and often the uniformed guards on duty
outnumber the customers.

This could be,

at first glimpse, the foyer o f a salon, fo r in
view are murals of heroic size and much
bronze and marble and glass, and the at­
mosphere is one of appropriate tranquility.
At first glimpse, that is.

C o a l-m in in g ,
leadin g
gin ia

W est
industry,

p ic tu r e d

a
V ir­
is

in third

Branch a r e a scene

Appearances, however, often are deceiv­
ing, and this is indeed the foyer o f a big
and busy institution that helps to make
Baltimore one of the financial capitals of
the nation.

Behind the bronze and marble

glass there is the bustle of billions, the bil­

Like all Federal Reserve Bank branches,

lions o f dollars in currency, coin, and credit

the Baltimore Branch is a service institu­

whose flow in and out o f this building is the

tion, serving directly the Federal Reserve

lifestream o f the economy o f the rich and

System member banks o f Maryland and

enterprising area served by the Baltimore

thirty counties of West Virginia and indi­

“ F ed.”

rectly the area’s entire financial structure,




in

its commerce, its industry, its agriculture,
and its millions of people.

In broad terms, the Branch performs for
the Federal Reserve System member banks

In the realm of over-all policy the basic

of its territory many o f the same services

concern o f the Federal Reserve System is

that those banks perform fo r their own

to make possible a flow of money and credit

customers.

that will foster orderly economic growth

posit accounts, called “ reserve” accounts

It holds member banks’ de­

This is a prime con­

because the funds that the law requires

cern o f the Baltimore Branch, too, but as

them to hold as a reserve against their de­

what bankers call an “ operating” office its

posits are held in this form ; it provides the

work mainly is carried on not at “ policy
level” but directly with the banking system.

to meet the requirements o f their custo­

What, then, is the work o f the Branch?

mers ; it handles their checks in its role as

and a stable dollar.




banks with the currency and coin they need

a part of the Reserve System’s nationwide
“ clearinghouse” ; it makes loans to the
banks when they need funds; it provides
them with a swift means o f transferring
funds about the country through the Re­
serve System’s nationwide wire transfer
network; it holds their securities in safe­
keeping; and countless other things.
In addition, as agent and banker for the
Government,

it

does

several

important

Oeportm ent

things for Uncle Sam.

A Record of Growth
Some idea o f the size of these operations,
and o f their growth since 1919, the first
full year o f business at the Branch, may be
seen in some random figures: In 1919 the
Branch handled 7,569,161 checks amount­
ing to $3,531,340,500; in 1954 the figures
were 59,642,000 checks and $16,084,050,000.

In 1919 it received and paid out

$325,419,730 in currency and coin; last
year it handled $1,458,152,670.

Member

bank reserves on deposit at the end of 1919

R sco' Age„cy

totaled $18,000,000; at the end of 1954
they were $185,994,895.

-"-"IP.

~W
S-

The Baltimore Branch was established
on March 1, 1918, less than four years after
the opening o f the Federal Reserve Bank
of Richmond on November 16, 1914.

Balti­

more had w aged a strong fight to be desig­
nated as the seat o f the Reserve Bank, but
the Reserve Bank Organization Committee
— the Secretary o f the Treasury, Secretary




T ransit D ep artm ent

o f Agriculture, and Com ptroller o f the Cur­
rency— selected Richmond.

The city’s im­

portance as a financial center was so great,
however, that it soon becam e apparent that
a Reserve Bank branch was needed there.
Of the twelve Federal Reserve Banks’
present tw enty-four branches, the Balti­
more Branch o f the Richmond “ F ed” was
the ninth to be established.

In size now,

measured in terms o f member banks’ re­
A rm ore d Truck in Security Court




serve accounts on deposit, it ranks twelfth
among the branches.

New Expansion N e a r
When the Branch first opened its doors
fo r business it had a staff o f twenty-nine
persons.

At the end o f 1954 it had 299.

Its first quarters were second-hand— it had
purchased the building at the corner o f
South and Redw ood Streets form erly occu­
pied by the old M echanics National Bank.
But these shortly proved to be too small to
house the people and machines necessary
to handle the grow ing volume o f work.

So,

in the words o f a report in the archives,
“ Soon outgrow ing these quarters and, in
anticipation o f further expanding opera­
tions, a new $1,500,000 building was fo r ­
mally opened on D ecem ber 28, 1927.”
This is the present six-story building at

the corner o f Calvert and Lexington Streets,

of square feet of space to the present build­

facing Battle Monument Square. And now,

ing.

at the end o f 1954, its sides are again bulg­
ing.
But they w on’t be for long.

As the economy of the territory it serves
expands, so too does the work of the Balti­

Starting in

more Branch.

Its officers, directors, and

1955 w ork will begin on a $2,000,000 p roj­

staff members take pride in the area and in

ect that will add four stories and thousands

the bank that helps to shape its destiny.




B

u

ii n

B

a

m

n

a

k

n

in

g

d

in

/954

There were three “ economic seasons” in
1954.

The first one was a period of de­

others were well along the path to recov­
ery.

Then too, there were some fields of

cline in business activity that extended over

activity, construction fo r

about the first three months.

never gave

continuation

of the

This was a

recession that had

started the previous summer.

notice.

the

recession

example, that
even

passing

They just boom ed all year long.

Then there

was a change in the economic climate and
a season o f stability when a number of

Tug of W a r
The “ year o f three seasons” was unique

m ajor economic indicators flattened out.

in other respects.

A long about September there were the

changes were in sharp contrast with the

faint stirrings, becoming definitely stronger

strength and extent o f individual adjust­

as the year closed, of the third season—

ments in specific sectors of the econom y.

recovery.

None o f the three seasons was

During a good part o f the year there was

so clearly demarcated that specific dates
can be assigned to them. Some lines of
business activity were still declining while

a sharp tug o f war between deflationary

18




The temperate overall

pressures and expansionary forces.

The

uninterrupted reduction in spending by the

Manufacturing Employment

f i f t h

d i s t r i c t

SM B m B H N M h h I

6<X)

9CX)

Construction Contracts Awarded




I2C

o

3C
>0

1500

FIFTH

D I S T R I C T

1'.)

Federal Government, for example, was a

spending by personal consumers for serv­

potent deflationary force in the 1954 econ­

ices contributed also to curbing the reces­

omy. Although the rate of decline lessened

sion and setting the stage for recovery.

during the year, the curtailment of such
outlays tugged

On the basis o f past experience, it might

harder than any other

have been expected that the recession in

single force on the downward side in 1954.

the early part o f 1954 would have resulted

Another

strong

deflationary

pressure

in declines in the money supply and the

was exerted by liquidation of business in­

volume of credit outstanding and in per­

ventories.

sonal income.

In the Spring of 1953, manu­

facturers and tradesmen were building up

Thanks in large part to in­

come tax reductions and larger social se­

their stocks at an annual rate of over $5

curity benefit payments, disposable per­

billion.

sonal income rose during the year.

In the third quarter of 1954 busi­

This

ness was reducing inventories at an annual

also was a unique economic developm ent

rate of almost $5 billion.

in 1954.

The net result

was a drag on general business activity of
over $10 billion.

Significantly, however,

Banks Fared W ell in 1954

inventory liquidation did not accelerate

The District’s member banks weathered

during the year and thus did not exert an

the changing tides o f econom ic activity

increasingly stronger downward pull.

with little strain in 1954.

deflationary forces

Throughout the year banks were able to

were reinforced by a reduction in business

obtain without great difficulty the funds

spending for producers’ durable equipment.

needed to meet the loan demands o f their

Although personal consumption expendi­

customers.

tures for durable goods increased during

ing with the policy set by the Federal Open

the year, the average was below that for

Market Committee at its meeting on De­
cember 15, 1953, continued the general
policy of maintaining member bank re­
serves adequate to promote growth and
stability in the economy with emphasis in
implementing this policy on “ actively main­
taining a condition o f ease in the money
market.” To this end the discount rate of
the Reserve banks was reduced from 2%
to 1 % % in January and then from 1 % %
to 11/2% in April-M ay. During the sum­
mer the Board o f Governors o f the Federal
Reserve System reduced the reserve re­
quirements of the member banks, releasing
approximately $1.5 billion o f reserve funds.
This action was taken in anticipation of
seasonally rising credit demands on the
banks and the Treasury’s financing needs.
A portion o f these released funds was
taken up by open-market operations at the
time and then fed back into the banking

These two

strong

1953.
The reason that these strong deflationary
forces did not produce a severe and snow­
balling downturn in business activity was
that there were substantial sustaining and
expansive forces operating at the same
time.

The big tug on the upward side was

given by construction.

Private outlays for

new construction, seasonally adjusted, rose
in each quarter of 1954 and helped offset
the reduction in spending for capital and
defense goods.

New residential building,

favored by more liberal loan provisions and
a plentiful supply of mortgage money, up­
set earlier forecasts and increased sharply
after the first quarter.
A steady rise in outlays by state and
local governments as well as increased

20




The Federal Reserve, in keep­

Electric Power Production

billions of k i lo wa tt hours

U N IT E D S T A T E S

F I F T H D IS T R IC T

10
0

1948

1946

1950

1954

1952

Nov«tnb«r and Dec«mt>«r 1954 Estim ated

Although general business activity w a s low er
last year than in record 1953, electric pow er
production reached new peaks. Continuation of
the extraordinary p o stw a r grow th in the use of
electricity in the home w a s a feature o f the 1954
electric power story.

Deposits and Major Earning Assets

fifth district m ber banks
em

1953 1954
B ILLIO N S OF D O LLA R S

Fifth District b an kin g in 1954 w a s at the h ig h ­
est level yet achieved. Total loans of member
banks at year's end were more than 9 % ab o ve
those at the close o f 1953, w hile total deposits
and holdings of G overnm ent securities showed
increases of 6 °/o an d 4 % respectively.

l l l l l l l l
°
I

The continued rise in business failures in 1954
w as attributable large ly to the intensification of
competition and the rise in new business incor­
porations. Due to heavy mortality a m o n g infant
enterprises, an increase in new starts is often
follow ed by a rising number of failures.

lo an s

AND DISCOUNTS

5
3

Dec*m ber

New Business Incorporations and Failures

f if t h

<
r
t

o

GOVERNMENT SE CU R ITIES

°

•
TOTAL DEPO SITS

1954 Estimated

d is t r ic t

NEW B U S IN E S S IN C O R P O R A TIO N S

B U S IN ES S FA ILU R E S

8000

-----------------------8 0 0

6000

4000-

-4 0 0

200 0 -

-200

1946
Source

1948
Dun and Bradstr**! Incorporated




1950

1952

1954

Nov«mb«r and D»c»mb«r 1954 Estimated

21

system through purchases in the market as
the banks’ credit needs materialized.
Within the general policy of the Commit­
tee, open-market operations continued flex­
ible throughout the year, being constantly
adapted to the needs of a growing economy
but being cautiously administered with a
watchful eye toward stability in the pur­
chasing power of the dollar.
The demands for bank loans in the Fifth
District remained at record levels during
1954.
In the first half of the year, total
loans outstanding advanced only slightly
but by early August the fairly strong rise,
which continued to the end of the year, was
under way. This was almost the reverse of
the trend in 1953 when loan demands were
unseasonably strong in the first part of the
year and equally unseasonably weak in the
last half, reflecting the moderate slidingoff of economic activity after late-summer.
The lending activities of the District’s
member banks in 1954 had several distin­
guishing features. First, loans secured by
real estate provided a much stronger out­
let for funds than in any year since the rec­
ord homebuilding year 1950. Demands for
mortgage loans against residential proper­

ties, stimulated by the unusually easy terms
permitted by Government m ortgage insur­
ing or guaranteeing agencies as well as by
the persisting high level o f personal in­
comes, gave lending agencies an attractive
employment fo r long-term funds. Funds
were readily made available to meet this
demand, by the banks as well as other
mortgage lenders, and the result was the
second highest year o f housing starts in the
history o f the nation.
A second distinguishing feature o f Dis­
trict bank lending activities in 1954 is
found in the field o f consumer credit. Over
the first six months o f the year, new loans
to consumers were hardly more than
enough to offset repayments on previously
made loans. It was not until the fall of
the year that the demands on the banks for
loans to purchase automobiles, home ap­
pliances, and the like broke the status quo
which had persisted since the fall o f the
preceding year, and caused a significant
increase in the amount o f such loans out­
standing.
Agricultural lending o f the District’s
member banks follow ed a m arkedly differ­
ent pattern in 1954 than in 1953. Starting

Sources of District Farm Income
31%
CROPS
64%

TOTAL

12%

9%
3%

FRUITS ond VEGETABLES
PEANUTS
OTHER CROPS

L IV E S T O C K *

14%

36%

10%

6%
♦ Includes livestock p rod ucts

22




COTTON

9%

100%

S o u rc e : U. S

T08ACC0

D e pa rtm en t of A g ricu ltu re

5%

'%

POULTRY ond EGGS
DAIRY PRODUCTS
CATTLE and CALVES
HOGS
OTHER LIVESTO CK*

the year with a considerably larger amount
outstanding, the banks over the first six
months o f 1954 expanded their loans to
farmers by half again as much as in the
same period the year before. Then, in the
ensuing three months in 1954, farm bor­
rowers cut their bank indebtedness almost
in half whereas in the third quarter o f 1953
they had added to their bank loans out­
standing. Further, loans to farmers failed
to advance by as much in the last quarter
o f 1954 as in that portion o f the preceding
year.
Total deposits at the member banks,
largely in response to the high level of lend­
ing activity over the year, established
a new record at the end o f the year. A fter
a no-more-than seasonally expected decline
over the first half of 1954, total deposits
expanded by over 8% to reach $7.1 billion.
The growth came primarily in demand de­
posits although time deposits increased at
two and a half times the 1953 rate.
The substantially larger volume of earn­
ing assets held by District member banks
during 1954 more than offset the easing in
interest rates and produced a gross income
topping 1953’s record perform ance. As in
immediate past years, loans and discounts
continued to provide the backbone o f the
member banks’ total earnings. The aver­
age annual return on loans outstanding was
very little changed from the preceding




year— just under 5 % — and the amount of
loans held continued to account for about
one-third of the total assets of the banks.
Earnings on loans provided almost twothirds of gross earnings.
The Federal income tax bill met by Dis­
trict member banks in 1954 was the largest
on record in dollar amount. Uncle Sam’s
share, however, was slightly less per dollar
of net profits before taxes than in the pre­
ceding year. Operating costs, on the
other hand, were not only larger in dollar
amount than in any year on record ; they
also took a larger share of each dollar of
total income than in any year since 1949.
A portion of the increase in operating costs
was due to increasing salary and wage pay­
ments, but a predominant share came from
interest payments to savings depositors.
In spite of higher operating costs and the
heavy tax bill, the member banks were able
to realize a net profit on the year’s opera­
tions equal to just over 9% of their owners’
equity, slightly above 1953’s net return.

Farm Income Declined
The year just closed was the third in
succession in which Fifth District farmers
sustained a loss in farm income. The drop
in 1954 was the combined result of a slight­
ly lower general level o f farm product
prices, lower acreage allotments of some
crops, and drought. Am ong the District
states, the income drop was less in Mary­
land and West Virginia and greatest in the
Carolinas— particularly South Carolina.
Farm production expenses have failed to
adjust downward as rapidly as the drop in
gross incom e; thus net farm income has
shrunk even more than gross. While
smaller farm incomes were felt first, and
to the greatest extent, by the farmers who
experienced the drop, the adverse effects
have, in fact, been felt throughout the busi­
ness community.

fm

November 16, 1954 marked the fortieth
anniversary of the establishment of the
Federal Reserve Bank of Richmond. The
date was observed without ceremony and
with only a few backward glances (one of
which revealed that this was the first Fed­
eral Reserve Bank to notify the Secretary
of the Treasury that it was open for busi­
ness) for forty years is only a short while
in the annals of the area that this bank
serves— historic Virginia, Maryland, North
Carolina, South Carolina, West Virginia,
and the District of Columbia. And, al­
though much has been accomplished in
these two-score years, much is yet to be
accomplished in the next forty years and
beyond. There's work to be done; let’s
get on with it, was the anniversary thought.

Volume of Operations
A lot of work was done at this bank and
its Baltimore and Charlotte Branches in
1954.
In banking operations, for instance: We
handled 223,784,000 checks amounting to
$73,752,728,000 (Richmond 116,777,000
and $39,583,403,000; Baltimore 59,642,000
and $16,084,050,000; Charlotte 47,365,000
and $18,085,275,000) and 746,962 noncash
collection items amounting to $219,807,314
(Richmond 181,244 and $72,439,038; Bal­
timore 532,961 and $110,051,716; Char­
lotte 32,757 and $37,316,560).
We made 116,403 transfers o f funds for
member banks adding up to $47,002,428,590 (Richmond 58,355 and $20,554,892,539; Baltimore 23,591 and $8,586,681,045;
Charlotte 34,457 and §17,860,855,186).
We received and paid out a total of 832,690,137 pieces of currency amounting to
$5,111,552,726 ( R i c h m o n d 425,115,390
and $2,680,696,968; Baltimore 223,791,872
and $1,406,827,842; Charlotte 183,782,875
and $1,024,027,916).

24




r 'A

C

M

I

m

O

u

W e received and paid out 1,217,781,918
coins totaling $98,336,231 (Richm ond 379,097,995 and $31,422,133; Baltimore 665,826,298 and $51,324,828; Charlotte 172,857,625 and $15,589,270).
Government securities (exclusive o f Sav­
ings Bonds) issued, exchanged, and re­
deemed during 1954 amounted to 155,535
pieces and $4,900,377,196 in value (Rich­
mond 77,074 and $1,906,007,316; Balti­
more 53,161 and $1,978,312,627 ; Charlotte
25,300 and $1,016,057,253). Savings Bonds
issued and redeemed through the bank to­
taled 13,396,721 pieces valued at $804,414,092.
The comparative statements of condition
and of earnings and operations on the
pages follow ing are standard and, to
bankers, self-explanatory. O f these fig­
ures, this might be sa id :
The most significant thing about this
balance sheet is that it shows no really
significant changes from the balance sheet
at the end o f 1953. This is significant be­
cause changes in the balance sheet o f a
Federal Reserve bank are brought about
as a result of Federal Reserve action to in­
fluence the financial climate o f the nation
— not to provide the Reserve banks with
greater earning resources.
True, the Decem ber to Decem ber figures
do not reveal what transpired during the
intervening months. The year 1954, how­
ever, was characterized by relatively mild
and orderly fluctuations in the financial
markets and the com parison o f year-end
Federal Reserve figures is not misleading.
They indicate that the record high level of
economic activity remained, on balance
over the year, about in equilibrium — that
declines in some areas o f activity and dur­
ing some months o f the year were about
offset in other areas or in other months.
The Reserve Accounts o f member banks,

for example, experienced a barely percepti­
ble net increase over the year, indicating
the Federal Reserve did not find it neces­
sary to greatly alter reserve funds available
to the banks as a means o f combatting
either excessive deflationary or inflationary
tendencies. The moderate increase in Fed­
eral Reserve notes outstanding is a good
indication that the normal seasonal changes
in needs fo r currency were met as they ap­
peared, but that no important growth or
decline in the use o f this form of money ap­
peared, on balance, over the year.
The
moderate increase in Discounts and A d ­
vances to member banks reflects only
the normal tightness which develops from
time to time at individual banks, not any
general credit tightness causing member
banks in large numbers to borrow.

C h an ges in Boards of Directors
The year brought changes in our Board
of Directors. On Decem ber 31, Deputy
Chairman W . G. W ysor, Management
Counsel o f Southern States Cooperative,
Inc., Richmond, ended eighteen years of
service as a Class C director. Dean W .
Colvard, Dean o f Agriculture at North
Carolina State College, was appointed by
the Board o f Governors o f the Federal Re­
serve System to succeed him. James D.
Harrison, President o f the First National
Bank, Baltimore, ended nine years o f serv­
ice as a Class A director, and Edwin Hyde,
President o f Miller and Rhoads, Inc., Rich­
mond, left the Board after serving four
years as a Class B director. Member banks
elected Daniel W . Bell, President and
Chairman o f the American Security and
Trust Company, W ashington, to succeed
Mr. Harrison and Robert O. Huffman, Pres­
ident o f Drexel Furniture Company, Drexel, North Carolina, to succeed Mr. Hyde.
John B. W oodw ard, Jr., Chairman o f the
Board o f Newport News Shipbuilding and




Dry Dock Company, was re-appointed as
our Chairman and Federal Reserve Agent.
Alonzo G. Decker, Jr., Vice President of
Black and Decker Manufacturing Com­
pany, Towson, Maryland, was appointed
Deputy Chairman.
At Baltimore, Charles A. Piper, Presi­
dent of the Liberty Trust Company of Cum­
berland, Maryland, and Clarence R.
Zarfoss, Vice President of the Western
Maryland Railway Company, Baltimore,
were re-appointed to the Branch Board.
At Charlotte, Thomas J. Robertson, Pres­
ident o f the First National Bank of South
Carolina, Columbia, retired from the
Branch Board on December 31 after six
years o f service. Appointed to succeed
him was Ernest Patton, Chairman of the
Board of the Peoples National Bank,
Greenville, South Carolina. Paul T. Tay­
lor, President o f the Taylor Warehouse
Company, Winston-Salem, North Carolina,
was re-appointed to the Board.

N ew Mem ber Banks
Five Fifth District banks became mem­
bers of the Federal Reserve System in 1954.
In January, the University National Bank,
Chapel Hill, North Carolina began opera­
tions, and in the same month the form er
Myrtle Beach Bank and Trust Company,
Myrtle Beach, South Carolina converted to
the First National Bank of Myrtle Beach.
In April, the Bank o f Clarke County,
Berryville, Virginia became a state mem­
ber bank. In June, the Guaranty Bank
and Trust Company of Huntington, West
Virginia converted to a national bank un­
der the name of the Guaranty National
Bank and simultaneously entered the Sys­
tem. In September, the Bank o f Virginia,
with offices in Richmond, Roanoke, Nor­
folk, Portsmouth, Newport News, and
Petersburg, became a state member.

25

C O M P A R A T I V E S T A T E M E N T OF C O N D I T I O N
D

ASSETS:

ecem ber

31,1954

D

ecem ber

31,1953

$1,156,033,013.39

$1,064,891,949.85

74,913,000.78

76,974,050.78

1,230,946,014.17

1,141,866,000.63

22,851,810.00
24,156,354.76
7,550,000.00

30,147,320.00
22,579,777.93
1,950,000.00
60,000.00

127,632,000.00
817,643,000.00
355,583,000.00
165,017,000.00

153,962,000.00
344,921,000.00
786,536,000.00
215,919,000.00

1,465,875,000.00

1,501,338,000.00

1,473,425,000.00

1,503,348,000.00

1,140.09
333,589,980.75
4,495,308.58
7,853,762.64

1,134.38
335,529,332.99
4,719,402.56
8,852,436.09

$3,097,319,370.99

$3,047,043,404.58

$1,864,244,945.00

$1,849,093,270.00

829,940,097.83
44,619,021.03
24,582,000.00
5,626,323.09

827,255,389.37
11,126,571.48
20,460,000.00
6,762,414.24

T otal D e p o s its _________________________________________

904,767,441.95

865,604,375.09

Deferred availability cash item s_________________________________

270,806,430.95
555,780.20

277,384,537.57
762,447.99

3,040,374,598.10

2,992,844,630.65

12,618,200.00
33,480,005.72
3,349,144.81
7,497,422.36

11,655,200.00
31,749,515.58
3,349,144.81
7,444,913.54

$3,097,319,370.99

$3,047,043,404.58

Gold certificates---- -------- ------------------------------------Redemption Fund for Federal Reserve notes
T o t a l G o ld C e r t if ic a t e R e s e r v e s

Federal Reserve notes o f other banks------------Other cash—.----- ---------------------------------------------------Discounts and advances..-------- -------------------------Industrial loans__________________________________

--------

U . S. G O V E R N M E N T S E C U R I T I E S :
B i l l s ___________________ __________________
Certificates
N otes

.........

Bonds _____
T o t a l U . S. G o v e r n m e n t
T otal

s e c u r it ie s

l o a n s a n d s e c u r it ie s ____________

Due from foreign banks
Uncollected cash item s....
Bank

prem ises___________

Other

assets______ _____
TOTAL ASSETS

LIABILITIES:
Federal Reserve notes___ ___ ______________________________________
D E P O S IT S :
Member bank— reserve accounts____________________
U . S. Treasurer— general ac co u n t.............................................. __
Foreign _______________ ___ _____________________ _________________
Other ............................. ............................. ..................... ..........................

Other

lia b ilitie s ____________ ___ ____________ ____________ ___ ______
T O T A L L IA B IL IT IE S

____ ______________

CAPITAL ACCOUNTS:
Capital paid in ____ _________ _________________ _____ ______________
Surplus

(Section 7)

____________________________ _______

Surplus (Section 13b) __________________ _____ _____ ________________
Other capital accounts

___________

T O T A L L IA B IL IT IE S A N D C A P IT A L A C C O U N T S

Contingent liability on Acceptances Purchased for Foreign Correspondents
Commitm ents to make industrial loans

26




979,200.00
39,000.00

$

1,196,605.24
51,190.55

C O M P A R A T I V E S T A T E M E N T OF E A R N I N G S AND E X P E N S E S
E a r n in g s :

1954

Discounts and advances_________________________________
Interest earned on industrial loans under Section 13b___
Fees received on commitments to make industrial loans
Interest on U. S. Governm ent securities________________
Other earnings___________________________________________
Total Current Earnings.

$

220,539.06
304.52
447.76
25,627,427.68
6,532.64

1953
$

710,297.11
2,274.20
560.38
33,343,105.55
11,127.96

25,855,251.66

34,067,365.20

Operating expenses (including depreciation on bank premises) after deducting
reimbursements received fo r certain Fiscal A gency and other expenses___________
Assessments fo r expenses o f Board o f G overn ors__________________ •- ___________
Cost o f Federal Reserve curren cy___________________________________________________

6,945,073.95
212,900.00
649,696.81

6,932,124.38
206,400.00
1,134,695.74

N et Expenses________________ _______________________________ ________________

7,807,670.76

8,273,220.12

18,047,580.90

25,794,145.08

31,734.87
9,213.26

129,574.04
33.02

40,948.13

129,607.06

52,508.82
637.20

167,576.43
64,578.80
2,124.18

53,146.02

234,279.41

-12,197.89

-104,672.35

$18,035,383.01

$25,689,472.73

$15,573,732.87
731,160.00
1,730,490.14

$22,511,392.27
676,502.00
2,501,578.46

$18,035,383.01

$25,689,472.73

$31,749,515.58
1,730,490.14

$29,247,937.12
2,501,578.46

$33,480,005.72

$31,749,515.58

E xpenses :

Current Net E a rn in gs_______________________________________________ ____________ __
A d d it io n s t o C u r r e n t N e t E a r n i n g s :

Profit on sales o f U. S. Governm ent securities ( n e t )________________________________
A ll other_________ ___ _________________________________________ __
________
Total A dditions
D e d u c t io n s f r o m C u r r e n t N e t E a r n i n g s :

Retirement System (adjustm ent fo r revised benefits).
Reserves fo r Contingencies___________________________
A ll other________________________________________________
Total D eductions____________________________________
Net Additions (-J-) or D eductions ( — ) _____________________
N e t E a r n i n g s B e f o r e P a y m e n t s to U. S. T r e a s u r y .

Paid U. S. Treasu ry (In terest on Federal Reserve notes)
Dividends paid_____________________________________________
Tran sferred to surplus (Section 7 ) ________________________
Total ________ _____________________________________________ _________ _
_

SURPLUS ACCOUNT (Section 7)
Balance at close o f previous year_______________________________________ « " ■ “-------- ■
Addition a / c profits fo r year_______________________________________________________
B a l a n c e a t C l o s e o f C u r r e n t Y e a r --------------------------- ------------------------------

CAPITAL STOCK ACCOUNT
icribed)
$11,655,200.00
1,014,600.00

$11,013,750.00
668,450.00

Cancelled during the y ea r_________________________

12,669,800.00
51,600.00

11,682,200.00
27,000.00

B a l a n c e a t C lose of C u r r e n t Y ear .

$12,618,200.00

$11,655,200.00

Balance at close o f previous year
Issued during the y e a r___________




27

D

v

u

u

t

i t

m

a

n

d

DI R E CTOR S
Jo h n B. W o o d w a r d , Jr.

Chairm an of the Board and Federal Reserve A ge n t

A lo n z o G. Decker, Jr.

Deputy Chairm an of the Board

D a n ie l W . Bell

President and Ch airm an of the Board, Am erican Security and Trust C o m p an y

CLASS

W ashington, D. C.

W a rre n S. J o h n so n

Investment Counselor, Peoples Sa v in g s Bank a n d Trust C o m p a n y
W ilm ington, North Carolin a

Jo h n A. S y d e n stric k e r

Executive Vice President, First N a tio n a l Bank in M arlinton

B

Marlinton, W est V irgin ia

Robert O . H u ffm a n

President, Drexel Furniture C o m p an y

CLASS

Drexel, North Carolin a

H. L. Rust, Jr.

President, H. L. Rust C o m p an y
W ashington, D. C.

W m . A. L. S ib le y

Vice President and Treasurer, M on arch M ills

C

Union, South Carolin a

D e a n W . C o lv a rd

Dean of Agriculture, North C a ro lin a State C o lle ge o f Agriculture a n d

Engineering

CLASS

Raleigh, North Carolina

A lo n z o G. Decker, Jr.

Vice President, The Black and Decker M a n u fa c tu rin g C o m p a n y
Towson, M a ryla n d

Jo h n B. W o o d w a r d , Jr.

Chairm an of the Board, N e w p ort N e w s Sh ip b u ild in g a n d Dry Dock Co m p an y
N ew port New s, V irgin ia

R rcOERAL ADVISORY COUNCIL
iuiiDtn FFnr t




R o be rt V . F le m in g

President and Ch airm an of the Board, R iggs N a tio n a l Bank
W ashingto n , D. C.

FOR

1955

FEDERAL RESERVE B I T Z
AS K

1

O
IF R
IO in n lS
H v O rX
D

OFFICERS
H u g h Le ach

President

E d w ard A. W a y n e

First Vice President

N . L. A r m is t e a d

Vice President

J. D e w e y D a a n e

Assistant Vice President

R o b e rt L. C h e r r y

Vice President

J a m e s W . D o d d , Jr.

Assistant Vice President

D o n a ld F. H a g n e r

Vice President

R obert G . H o w a r d

Assistant Vice President

A u b r e y N . H e flin

Vice President a n d G eneral
Counsel

J o h n L. N o s k e r

A ssistant Vice President

U p to n S. M a r t in

Vice President

T h o m a s I. Sto rrs

Assistant Vice President

J a m e s M . S la y

Vice President

G. H a ro ld S n e a d

Chief Examiner

C. B. S t ra th y

Vice President a n d Secretary

V icto r E. P re ge a n t, I

Assistant General Counsel

C h a r le s W . W illia m s

Vice President

E. B. C o le m a n

Assistant Cashier

J o s e p h M . N o w la n

Cashier

H. Ern est Ford

Assistant Cashier

R. S. B rock, Jr.

General A u d itor

W y t h e B. W a k e h a m

Assistant Cashier

E d w a r d W a lle r, Jr.

Assistant Cashier

INDUSTRIAL ADVISORY COMMITTEE




J. G . H o ltz c la w , C h a ir m a n

President, V irgin ia Electric and Power C om pan y
Richmond, V irgin ia

O v e r t o n D. D e n n is

Dom inion O il Co m p an y
Richmond, V irgin ia

R o ss Puette

President, C aro lin a Paper Board Corporation
Charlotte, North Carolin a

W a lk e r D. S tu a rt

President, Richmond H ardw are Co m p an y
Richmond, V irgin ia

J o h n L. W h it e h u rs t

President and Treasurer, Burt Machine Com pany, Inc.
Baltimore, M a ry la n d

29

D

i M

d

o

1
/

5

a

n

d

FOR 1955

0

BALTIMORE
DIRECTORS
H o w a rd M . T a ylo r, Jr.

Chairm an o f Branch Board
President, International Bedding C o m p a n y
Baltimore, M a ry la n d

T h e o d o re E. Fletcher, Sr.

Senior Partner, Albert W. Sisk a n d Son
Preston, M a ryla n d

C h a rle s W . H o ff

President, Union Trust C o m p an y o f M a ry la n d
Baltimore, M a ry la n d

C h a rle s A . Piper

President, Liberty Trust C o m p a n y
Cum berland, M a ry la n d

Lacy I. Rice

President, O ld N a tio n a l Bank
M artinsburg, W est V irgin ia

S ta n le y B. Trott

President, M a ry la n d Trust C o m p a n y
Baltimore, M a ry la n d

C la re n ce R. Z a rfo ss

Vice President, W estern M a ry la n d R a ilw a y C o m p a n y
Baltimore, M a ry la n d

OFFICERS
D o n a ld F. H a g n e r

Vice President

A. A . Stew art, Jr.

Cashier

A. C. W ie n e rt

A ssistant Cashier

B. F. A r m s t r o n g

A ssistant Cashier

E. R ig g s Jones, Jr.

A ssistant Cashier

C

DIRECTORS

H

A

R

L

O

T

T

E

T. H e n ry W ils o n

Chairm an of Branch Board
President and Treasurer, Henredon Furniture Industries, Inc.
M organ ton , North C aro lin a

G e o rg e S. C ro u c h

Chairm an o f the Board, Union N a tio n a l Bank
Charlotte, North C aro lin a

A rc h ie K. D a v is

Senior Vice President, W a ch o v ia Bank and Trust C o m p a n y
W inston-Salem , North C aro lin a

W illia m H. G rie r

Executive Vice President, Rock Hill Printing an d Finishing C o m p a n y
Rock Hill, South C aro lin a

Ernest Patton

C hairm an of the Board, Peoples N a tio n a l Bank
Greenville, South C a ro lin a

P au l T. T a y lo r

President, Taylor W arehou se C o m p a n y
W inston-Salem , North Carolin a

J o n a th a n W o o d y

President, First N a tio n a l Bank
W aynesville, North C a ro lin a

OFFICERS
Robert L. C h e r ry

Assistant Cashier

E. C. M o n d y




Cashier

R. L. H o n eycu tt

30

Vice President

S. A . Ligo n

Assistant Cashier

Pictures used in this booklet should be credited as follow s:
Pages 2 & 3, Bethlehem Steel Com pany; 4, Blakeslee-Lane, Inc.,
Baltimore; 5 & 6, Baltimore A ssociation o f Comm erce;
8, M organtown, W . V a. Chamber o f Comm erce; 9 (u p p e r) Glenn L . Martin
Company, Baltimore, (low er) Fairchild A ircra ft, H agerstow n,
Md.; 11, U niversity o f Maryland. Photographs o f Baltim ore Branch
are by Blakeslee-Lane, Inc. A p preciation is extended also to the
Maryland Departm ent o f Inform ation : Chambers o f Comm erce o f Salisbury,
Hagerstown, and Cumberland, Md. and Clarksburg, M organtow n, and Parkersburg,
W. V a.; Fairm ont, W . V a . Developm ent A ssociation; and Silver S pring, Md. Board o f Trade.
This report was printed by the Federal Reserve Bank o f R ichm ond P rin tin g Departm ent.







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