Full text of Annual Report of the Federal Reserve Bank of Cleveland : 1925 : Eleventh Annual Report to the Federal Reserve Board

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Federal Reserve Bank




of Cleveland
1925

ELEVENTH ANNUAL REPORT
TO THE

FEDERAL RESERVE BOARD

ANNUAL REPORT
of the

Federal Reserve Agent
of the

Fourth Federal
Reserve District
to the

Federal Reserve Board

Covering Operations
for the
Calendar Year
1925

FEDERAL RESERVE BANK OF CLEVELAND







LETTER OF TRANSMITTAL

February 1, 1926.
SIR:
I have the honor to transmit to you herewith the eleventh annual
report of the Federal Reserve Bank of Cleveland, covering operations for the calendar year 1925.
Respectfully,
GEORGE D E C A M P ,
Chairman of the Board.
H O N . D. R. CRISSINGER, Governor,
Federal Reserve Board,
Washington, D. C.







Directors and Officers, 1926
DIRECTORS
CLASS A
ROBERT WARDROP, Pittsburgh, Pa., 1926

O. N . S A M S , Hillsboro, Ohio, 1927
C H E S S LAMEERTON, Franklin, Pa., 1928

CLASS B
G. D . CRABBS, Cincinnati, Ohio, 1926
J O H N STAMBAUGH, Youngstown, Ohio, 1927
R. P . W R I G H T , Erie, Pa., 1928

CLASS C
GEO. D E C A M P ( C h a i r m a n ) , Cleveland, Ohio, 1926
W . W . K N I G H T , Toledo, Ohio, 1927
L. B. W I L L I A M S (Deputy Chairman), Cleveland, Ohio, 1928

OFFICERS
GEO. D E C A M P , Chairman of the Board
and Federal Reserve Agent
W. H . FLETCHER, Assistant Federal
Reserve Agent a n d Manager, E x amination Department
J. B. ANDERSON, Assistant Federal
Reserve Agent a n d Manager, Statistical Department
F . V . GRAYSON, A u d i t o r

E. R. FANCHER, Governor

M. J. FLEMING, Deputy Governor
F. J. ZURLINDEN, Deputy Governor
H . F . STRATER, Cashier and Secretary
W . F . TAYLOR, Assistant Cashier
C. W . ARNOLD> Assistant Cashier
G. H . WAGNER, Assistant Cashier
D. B. CLOUSER, Assistant Cashier
C. L. BICKFORD, Assistant Cashier
G. A. STEPHENSON, Manager, Department of Bank Relations

CINCINNATI BRANCH
DIRECTORS

OFFICERS

A. E . ANDERSON
CHAS. W. DUPUIS
E. S. L E E
L. W . M A N N I N G
JOHN OMWAKE
A . CLIFFORD S H I N K L E
GEO. M . VERITY

L. W . M A N N I N G , Managing Director
B. J. LAZAR, Cashier

J. P . H . BREWSTER, Assistant Cashier
H . N . OTT, Assistant Cashier
P. J. FAULKNER, Assistant Federal
Reserve Agent
PITTSBURGH BRANCH

DIRECTORS
A. E . B R A U N
CHARLES W . BROWN
J. D . CALLERY
J . R. E I S A M A N
R. B . M E L L O N
J O S E P H R. NAYLOR
J . C. N E V I N




OFFICERS
J. C. NEVIN, Managing Director
T. C. GRIGGS, Cashier

P. A. BROWN, Assistant Cashier
F . E. COBUN, Assistant Cashier
T. M. JONES, Assistant Federal
Reserve Agent




ELEVENTH ANNUAL REPORT
FEDERAL RESERVE BANK OF CLEVELAND
The activities of the Federal Reserve Bank of Cleveland in practically every department reflect the improvement in business during
the year under review as compared with the year immediately
preceding. Generally speaking, the disturbances in finance and
business which followed the war and post-war booms have largely
disappeared, so that during the past year the reserve banks have
been able to operate more free from war-time restrictions than at
any time since their influence in the field of business and finance
has become a factor of any considerable importance.
The major economic and financial developments of the year have,
however, been international rather than local in character. The
action of several European nations in effecting stabilization of their
exchanges and currencies removes one of the principal barriers
which during and after the war had hindered or restricted international trade.
The free movement of gold tends to stabilize both interest rates
and prices. Its normal movement is from points where money rates
are lower to points where they are higher, and, when no restrictions
are applied to such movements, there is better adjustment of rates
in the world's chief money markets.
The situation is entirely similar with respect to prices. When
commodity prices in any nation rise above the world price level,
the purchase of goods in foreign markets is encouraged, with a consequent outflow of gold. This exportation of the metal tends to
reduce the volume of credit available and to lower prices. Conversely, when prices in any nation fall below the world level, foreign
buying is attracted and gold flows to that country in settlement.
These are the important factors that enter into price adjustments,
and the free movement of gold thus has a bearing on credit and
financial conditions throughout the major part of the world with
which we have important trade relations.
Of particular interest, because of our large exports to Great
Britain was the announcement by the British government of its
return to the gold standard. In connection with the British program,
the Federal Reserve System has played an important part through
its arrangement with the Bank of England to sell to it on credit
at any time within the next two years, if the exigencies of the
situation require, a sum not exceeding 200 millions in gold. The
details of the agreement have been given considerable publicity, so




7

that it is not deemed necessary to discuss them here; but, in the
event that this credit is drawn upon, this bank will participate in
its proportional share.
During the past year arrangements have been completed with the
Bank of Poland to make to it loans secured by gold and with the
National Bank of Belgium to buy from them prime commercial
bills, to facilitate efforts being made to stabilize their currencies. In
the event such loans are made or such bills bought, this bank will
also participate.
From the standpoint of value to Fourth District business, these
developments are to be regarded as highly satisfactory. Of the total
volume of manufactured goods exported from the United States,
a substantial part is produced in this district; hence, any development
which will pave the way for a resumption of normal trade relations
with countries which have in the past been large purchasers of our
goods is much to be desired.
The funding of a large part of foreign governmental indebtedness
to this country has also contributed to a return of confidence in
international business relations.
RESULTS OF OPERATIONS

While the demand for Federal Reserve bank credit in this district
has not approached that of 1920, the volume of bills discounted
shows with minor fluctuations an almost constant increase throughout the year (after the seasonal decline which occurred in January),
reaching a high point of 102 millions in mid-December—approximately 77 millions above the low point of the year.
Bills discounted for the year were substantially higher than in
1924, but the number of banks offering paper was just below that
of last year, the figures being 483 and 485, respectively. An
analysis of these loans, however, shows a decided increase in city
bank borrowing.
Not only was the daily average of earning assets in excess of
16 million dollars over that of last year, but there was a distinct
change in the character of the holdings. At the beginning of the
year the bulk of our invested assets consisted of various government issues and a substantial percentage of open market bills.
During the month of January, discounted bills and direct borrowings dropped 21 millions to a low point of 25 million.
Chart No. 1 shows in graphic form the trend for the past two
years of our principal earning assets.
During the early months of the year, this bank sold in the open
market a substantial part of its holdings of government securities
and bankers' bills. Since the month of June, the volume of securities
has remained practically unchanged, while that of bankers' acceptances has shown a constant decrease, by reason of maturing of such
bills held.
During the first five months of the year, the reserve ratio of this
bank showed a distinctly upward trend. The principal reason for




8

this is found in the large increase of gold reserves, which gained in
that period nearly 75 million dollars. This gold came to us through
a net gain in clearings and transfers from other Federal Reserve
districts. From a high point of 80.4, the trend of the reserve ratio
for the year was slightly downward, and on November 17, following
a rather sharp increase in bills discounted, the discount rate was
raised to 4 per cent. This was the first change in our rate since
August 15, 1924.
Detailed statistics covering the activities of the Federal Reserve
Bank of Cleveland may be found in the annual report of the Federal Reserve Board.
Comparison of various classes of rediscounts and loans—1925 and 1924.
(Amounts in thousands)
1925
Secured by U. S. Government obligations
Commercial and agricultural
Bankers' acceptances
Trade acceptances
Demand and sight drafts
Total

1924

$2,426,270
724,609
5
7.826
108

$1,021,567
317,742

$3,158,818

$1,348,025

8" 409
307

MEMBER BANK CREDIT

Actually, neither the figures of the Federal Reserve Bank of
Cleveland nor of its members present an accurate picture of credit
conditions in this Federal Reserve district. This territory is essentially industrial in character, producing annually a very large percentage of the nation's output of manufactured goods. Many of
the firms engaged in this production are among the largest in the
country, whose credit requirements are far beyond the capacity of
local banks to accommodate. Consequently, an important part of
their financing is done in eastern money markets, and such transactions have no influence on credit conditions as reflected by the
figures of banks in this district.
The figures of seventy-five reporting member banks in this district, which may be said to be fairly indicative of the general trend,
show an increase of approximately 90 million dollars in total loans,
discounts, and investments during the year. Loans and discounts
alone have increased 137 million, while a decline in government
securities held of approximately 55 million has occurred. Of the
total increase in loans and discounts, a substantial part, approximately 93 million, is accounted for by an increase in collateral loans.
Demand deposits are practically unchanged, from the beginning
of the year. As a matter of fact, throughout the entire year there
has been a fluctuation of scarcely more than 50 million dollars.
Time deposits continue to show a moderate, although consistent,
gain, the increase for the year being approximately 50 million dollars.
As the year closes it is evident that the banks in the district are
sound, being amply able to meet the usual requirements of industry,
agriculture, and commerce.




9

EARNINGS AND EXPENSES OF MEMBER BANKS
Detailed statistics of earnings and expenses of member banks in
this district show a gain of over 8% in gross income for the year
ended June 30, 1925, as compared with the year ended June 30,
1924. Total expenses, including interest paid on deposits, increased
about 7.7% and net earnings show a gain of 9.8%.
Losses on both loans and investments show a small decrease per
$100 of earning assets, and net addition to profits a small increase.
Interest paid on deposits accounts for slightly more than 50% of
total expenses, and salaries and wages account for an additional
25% of this total. Salaries and wages also were slightly higher per
$100 of earning assets for the period ended June 30, 1925.
Elsewhere in this report will be found a graphic chart showing
distribution of income and expenses for the year ended June 30,
1925. (Chart No. 3).
MOVEMENT OF MEMBERSHIP

Three banks from this district were admitted to membership in
the Federal Reserve System during 1925, while withdrawals numbered twelve, a net loss of nine members. The total membership
on December 31, 1925, was 863, of which 747 were national and
116 state banks, as compared with 753 and 119, respectively, a year
ago.
Of the eight national banks withdrawing from the system two
were declared insolvent and placed in the hands of receivers; three
merged with other national banks, while the remaining three merged
with state institutions which were already members. Three of the
state banks lost to membership withdrew voluntarily, while two
others merged to form a new state bank, which continued as a
member of the system.
The new state bank and the two new national banks were
admitted to membership with resources totaling $2,600,000. Despite
the loss of nine member banks, the amount of capital stock of this
bank which was paid in by members increased from $12,756,550
on December 31, 1924, to $13,175,800 on December 31, 1925. Member bank reserve deposits have increased nearly 9 million in the
same period.
Fourth District members
Dec. 31, 1924 Withdrawn
753
119
872

8
4
12

Admitted

Dec. 31, 1925

2
1

747
116

3

863

RELATIONS WITH MEMBER BANKS
The department of bank relations has continued to maintain cordial relations with our member banks through frequent personal
10



contacts. During the year under review the staff of this department
made 1,758 visits to member banks and 266 visits to banks not members of the system.
In addition to the regular work of visiting member and nonmember banks, representatives of this department were present at
thirteen bank openings, seventeen group meetings, and six conventions. Addresses made by members of the official staff before banking and commercial organizations numbered forty. During the year
there were 5,245 visitors shown through our building by members of
this department, cooperating with the officers of the bank.
There were no changes in the personnel of the department during
the year.
BANK EXAMINATION

The examination department has continued to enjoy cordial relations with the office of the Comptroller of the Currency and with
the banking departments of the four states included in our territory.
They have also continued to cooperate with the national bank
examiners, and in conjunction with the examiners of the several
states have conducted simultaneously all our credit investigations
of state bank members. During the year this department conducted
four credit investigations of national banks and fifty-seven of state
bank and trust company members.
The work of this department has broadened considerably and now
includes a number of special investigations not made heretofore.
During 1925 members of the staff investigated three applications for
national bank charters and the applications for membership of two
state institutions. There also were made three special investigations
on transit operations and one special visit concerning membership.
Recommendations as to granting fiduciary powers to national banks
were made in thirteen instances, and investigations with reference
to twenty-five interlocking directorate applications made. Investigations and recommendations with respect to establishment of
branches by state bank members, numbered fifteen for the year.
No changes have occurred in the personnel of the examining staff.
FEDERAL RESERVE NOTES
The volume of Federal Reserve notes in circulation during 1925
shows an almost continuous increase after the seasonal January
decline. During the year the Federal Reserve Agent received from
the Comptroller of the Currency $175,940,000 in new notes, an
amount considerably in excess of last year's figure of $108,500,000.
There were issued and reissued during the year notes to the amount
of $212,640,000 compared with similar issues in the previous year
of $132,900,000. Notes returned to the Federal Reserve Agent
were about $3,500,000 less than during 1924, while the amount of
notes returned to the Treasurer of the United States for redemption
and delivered to the Comptroller of the Currency for destruction
was $310,000 in excess of the preceding year.
The Federal Reserve banks now are practically the only agencies
for the issuance of new currency other than national bank notes.




11

Similarly, a very large percentage of currency in circulation in this
district when unfit for further circulation is redeemed through the
Federal Reserve Bank of Cleveland, and in this connection it is
of interest to note that there is canceled and sent to Washington
for destruction by this bank approximately $300,000 every working day. It might fairly be said that this represents, then, the amount
of currency in circulation in this district which is worn out daily
in the channels of industry and trade.
Total receipts and disbursements covering all money operations
during 1925 totaled $2,427,666,797, which was somewhat larger
than the figure $2,211,650,148 for last year. Currency operations
with members and non-members also showed an increase over last
year, the figures being $1,653,167,713 in 1925 and $1,588,718,868
in 1924. The tabulation below compares the principal operations
of the money department for the past two years.
Chart No. 2 shows graphically the trend of Federal Reserve note
circulation for the past two years.
Federal Reserve notes

Notes issued and reissued to bank..
Redeemed by Federal Reserve Agent.

.
._

1925

1924

$262,836,865
232,614,585
175,940,000
212,640,000
180,411,810
153,861,810

$230,608,675
198,515,485
108,500,000
132,900,000
184,004,145
153,554,145

Currency operations—Total receipts and disbursements
Receipts
Cleveland.
Pittsburgh.
Cincinnati

..
.. .

.

. . . .
.

._
..

._

Total

Disbursements

$478,643,914
545,823,779
204,410,676

$463,846,596
532,221,693
202,720,139

$1,228,878,369

$1,198,788,428

Currency operations with members and non-members
Receipts
Cleveland..
. . _ i . . -_
Pittsburgh.__._
Cincinnati- . . _ ...

_

.-

_
._._.__.___..

Total

Disbursements

$293,790,222
400,342,419
129,863,490

$289,127,791
409,380,101
130,663,690

$823,996,131

$829,171,582

CHECK COLLECTION AND CLEARING OPERATIONS

The number of items exclusive of duplications handled by the
transit department of this bank and its branches during the year
exceeded by nearly 1 million the number handled during 1924 or
an increase of 1.2 per cent. The percentage increase in the amount
represented, however, was considerably higher. The amount in
1925, exclusive of duplications, was $26,363,252,000 as compared
with $23,574,504,000 in 1924, an increase of 11.8 per cent.
Of the 67,705,314 items handled 17,391,844 were drawn on banks
in the cities of Cleveland, Cincinnati, and Pittsburgh; 45,582,540




12

were drawn on banks in the rest of the district; 2,467,571 on banks
in other districts, and 2,263,359 on the Treasurer of the United
States. The number of duplications, that is, items handled by
both the main office and branches, was 1,181,365, amounting to
$289,159,275.
Transit department check clearings
Cleveland
No. of Items
On other banks in District No. 4 .

Total

- _ ._

Amounts

__ _

8,554,748
19,808,239
690,813
888,260

$6,787,053,288.85
2,313,963,057.19
124,858,556.44
81,768,331.67

. -

29,942,060

$9,307,643,234.15

458,467

$121,016,010.79

3,331,705
11,814,240
642,733
777,024

$4,813,733,061.38
1,080,933,650.76
81,355,730.22
101,657,727.10

16,565,702

$6,077,680,169.46

222,886

$54,842,818.78

5,505,391
13,960,061
1,134,025
598,075

$8,951,151,848.91
1,420,813,707.92
535,804,035.96
70,159,003.56

21,197,552

$10,977,928,596.35

500,012

113,300,445.34

--

Cincinnati
On other banks in District No. 4

.

__

Total

Pittsburgh
On other banks in District No. 4

Total

._ _ _

...

Items sent to main office and Cincinnati branch-.

Recapitulation
Total amount of items handled. .
.
Items and amounts handled by both parent bank and
branches and not duplicated in above figures
_ __ .

67,705,314
1,181,365

$26,363,251,999.96
$289,159,274.91

COLLECTION DEPARTMENT

During 1925 the collection department handled 380,960 non-cash
items, amounting to $476,804,985.20. This represents a decrease
of 13.7 per cent from the 1924 figure in the number of items handled,
and an increase of 11.6 per cent in amount over last year. Of
this total 287,017 items, aggregating $387,588,203.79, were paid
through the three offices of the Federal Reserve Bank of Cleveland.
Approximately 88- per cent of all items handled were collected.
This is a larger percentage of items paid than in past years, when
the average has been between 85 and 86 per cent.
Collecting banks made charges on 29,730 items, aggregating
$12,149,722.02, or at the rate of 95/100 of 1 per cent; 257,287 items,
amounting to $375,426,878.25, were collected without collection cost.
Member banks in this district have continued to take advantage
of the direct routing plan and during the year forwarded to other




13

Federal Reserve banks over 60,000 items, aggregating over 75
million dollars, of which more than 52,000 items, aggregating in
excess of 68 million dollars, were paid.
Collections
No. of Items
Cleveland
Pittsburgh
Cincinnati

__
__

. . ..

Total

Amount

335,253
17,293
28.414

$390,413,722.68
44,849,051.39
41,542,211.13

380,960

$476,804,985.20

FISCAL AGENCY OPERATIONS

Four series of Treasury certificates of indebtedness and an additional issue of the Treasury bonds of 1944 were offered for public
subscription during 1925. Subscriptions received in this district
aggregated $261,146,200, upon which $121,166,100 was allotted.
We delivered 24,085 bonds and certificates upon allotment account.
Government coupons redeemed were 4,909,840 in number, aggregating in value $60,068,446; 156,198 coupons, totaling $4,765,985
in value, detached from Federal Land bank bonds, also were redeemed.
Government securities received for exchange consisted of 180,619
pieces in coupon form and 20,738 pieces in registered form, aggregating $106,920,900. Against such receipts, deliveries were made
of 51,121 coupon and 18,531 registered obligations. There were
20,193 separate exchange transactions.
Government obligations presented for redemption numbered
593,036, having a face value of $99,214,290, there being 14,694 separate transactions. In addition, Federal Land bank and Federal
Intermediate Credit bank bonds aggregating $1,035,750, were redeemed.
On November 27, the Secretary of the Treasury invited holders
of Third Liberty Loan bonds to submit proposals for the sale of
such bonds directly to the Treasury, for the cumulative sinking
fund, at prices not exceeding 101^2. Pursuant thereto, we received
831 proposals for an aggregate face amount of $13,439,700. All
proposals naming a price of 101^4 or less were accepted. Of the
proposals made in this district, 290 were accepted and payment
made thereunder for $3,168,000, face amount.
PERSONNEL

It is with deep regret that we record the passing away on October
22 of Mr. David Crawford Wills, who had served this bank as
Chairman of the Board and Federal Reserve Agent from its organization until the date of his death, except for a brief period when
he served as a member of the Federal Reserve Board. During his
term of office, he had served this bank and this community with
high distinction of character and intelligence.




14

The following minute is taken from the records of the meeting
of the Board of Directors held on October 24 in a special session
to do brief honor to his life and character:
"We stand before the memory of our dear friend. Our
hearts echo again with the gaiety of his spirit, and by the
sureness of his vision our minds are led anew. His unerring trust in the multitude renews our faith in man, and
our hope of life is brightened by his trust in God. The
heads that are bowed in grief shall be lifted up when all
the brightness of his life is perceived. May the gentle
Father of all comfort the bruised hearts within his home
and let the richness of his life keep green within each
memory of its priceless share in his golden friendship."
On December 19, the Federal Reserve Board announced the
appointment of Mr. George DeCamp, Managing Director of the
Pittsburgh branch of the Federal Reserve Bank of Cleveland, as
Chairman of the Board and Federal Reserve Agent to fill the unexpired term of Mr. Wills. Mr. DeCamp has been identified with
this institution for eight years, having organized the Pittsburgh
branch and managed it continuously since its opening. He is wellknown to the bankers throughout the district, having served for
years prior to his connection with this bank as national bank examiner in territory which now is part of this Federal Reserve district.
In the election of directors which occurred in November, Mr.
Chess Lamberton, of Franklin, Pennsylvania, and Mr. R. P. Wright,
of Erie, Pennsylvania, were reelected Class A and Class B directors,
respectively. Mr. L. B. Williams, of Cleveland, was reappointed
Class C director and redesignated Deputy Chairman for the year
1926. At the Cincinnati branch, Mr. A. E. Anderson, of Cincinnati,
Ohio, was appointed to succeed Hon. Judson Harmon, who retired
under the rotation plan. Mr. E. S. Lee, of Covington, Kentucky,
was reappointed. At the Pittsburgh branch, Mr. A. E. Braun, of
Pittsburgh, Pennsylvania, was appointed to succeed Mr. C. D.
Armstrong. Mr. C. W. Brown was reappointed.
The number of employees of this bank on December 31, 1925,
was substantially the same as a year ago, the exact figures being
942 and 956, respectively.
GENERAL BUSINESS CONDITIONS

Throughout the Fourth District, as in other sections of the country, business was almost uniformly better during 1925 than 1924,
certain industries experiencing their best year of the post-war
period. In many lines, such as building, agricultural implement
manufacturing, and the automobile and allied trades, the improvement was part of a nation-wide upswing; while the progress of
others, notably coal and rubber, was considerably affected by special
and peculiar circumstances.
As in 1924, the year 1925 opened with business at a high level,
considering the season. There was some slackening of production




15

in basic industries in the spring months, but nothing like the drastic
curtailment of the late spring and summer of 1924. As 1925 progressed, the features of the situation were the extraordinary activity
in the automobile and building industries, which broke all records
during the latter part of the year. The heavy demand of these two
trades for materials led to a steady improvement in the important
iron and steel industry, and favorably affected various other lines
such as lumber, glass, and paint. Another noticeable element was
the substantial recovery of industries dependent upon agriculture,
such as agricultural implements and chemicals.
The general feeling of business men in this district seems to be
better than for some time past, and several reasons might be mentioned as contributory causes. For one thing, relations between
employer and employee have been good, no strike of importance
having occurred in this district during 1925, with the exception of
a strike in the bituminous coal fields called in the spring. Again,
there have developed no unhealthy "boom" tendencies in commodity
prices, such as have sometimes taken place in the past; the wholesale price level, in fact, has changed but little during 1925. Another
factor is that of credit; although money rates have risen somewhat
from their extremely low levels of 1924, they are still considerably
lower than in 1923.
Turning to developments in some of the more important industries
m the Fourth district, the iron and steel trade closes the year with
operations at a high rate of capacity. Orders are plentiful, and the
outlook for the first quarter of 1926 is good. Steel ingot production
for 1925 ran above any previous year, even exceeding the war-year
of 1917.
The rubber and tire industry in this district has been subject to
peculiar conditions during 1925. A large part of the world's rubber
supply is controlled by British interests, and exports of this rubber
have been artificially controlled by the Stevenson Act. This was
originally passed to help the British growers through the post-war
slump, but as American tire manufacturers began to get back on
their feet in 1924 and 1925, their demand for crude rubber ran
ahead of the restricted supply, and as a result crude rubber prices
ascended rapidly from about forty cents a pound at the opening
of the year to $1.20 in July, and they are still around the ninety-cent
mark. This has been a disturbing factor, and has led to several
increases in tire prices; but in spite of it, tire manufacturers have
enjoyed a considerably greater volume of business than they did last
year, and profits in most instances have also been greater.
The anthracite coal strike, called September 1, has reacted favorably on the soft coal industry in this district, due mainly to the
use of soft coal and coke as substitutes for anthracite. An excess
of productive capacity still continues, however, and it can hardly
be said that conditions in the bituminous industry are entirely
satisfactory.




16

Agricultural conditions in this district were better in 1925 than
in 1924, on the whole. The Ohio corn crop was the best on record,
as compared with a poor crop last year, and this fact more than
overbalanced the fower prices received in 1925. The wheat crop
was unsatisfactory, but several of the lesser crops compared favorably with those of 1924.
Retail trade in 1925, as measured by the sales of seventy department stores in this district, ran 2.1 per cent ahead of 1924, due to
steady improvement in the latter part of the year. In the wholesale
trades, the year's increase for drug firms was 4.2 per cent and for
hardware 1.9 per cent. Groceries and dry goods declined 3.1 and
4.2, respectively, and shoes declined 0.6 per cent.




17

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19

Statement of the condition of the Federal Reserve Bank of Cleveland
December 31, 1925, and December 31, 1924
RESOURCES

Dec. 31, 1925

Cash Reserves:
Gold bullion, coin and certificates
Gold settlement fund—Federal Reserve Board.
Gold with Federal Reserve Agent
Gold redemption fund—Federal Reserve notes.
Total gold reserves
Legal tender notes, silver coin and certificatesTotal cash reserves
Non-Reserve Cash:
National bank notes
Federal Reserve bank notes
Subsidiary silver, nickels and cents
Total non-reserve cash
Earning Assets:
Member bank collateral notes
Bills discounted for member banks
Bills bought in open market
U. S. Government securities:
U. S. 4}4% Liberty Loan bonds
U. S. bonds issued since 1921
Other U. S. bonds
Treasury notes
U. S. certificates of indebtedness
Participation in Special Investment
Foreign loans on gold
Par value of earning assets
Uncollected Items
Bank Premises:
Banking house—Cleveland
Banking house—Pittsburgh
Other real estate—Cincinnati
Total bank premises
Less reserves for depreciation
Bank premises—net
Total miscellaneous assets
Total Resources

Dec 31, 1924

$47,340,500.63
62,915,704.02
192,604,320.00
994,632.44

$21,406,977.35
40,158,253.31
165,466.130.00
1,848,465.27

$303,855,157.09
9,550,701.00

$228,879,825.93
9,365,371.00

$313,405,858.09

$238,245,196.93

$4,626,000.00
13,315.00
429,730.05

$5,389,060.00
18,313.00
526,469.48

$5,069,045.05

$5,933,842.48

$42,959,221.79
23,169,124.19
4,989,615.36

$30,940,650.00
11,132,578.14
41,217,174.99

$7,354,900.00
195,000.00
414,800.00
10,293,700.00
499,500.00
17,651,500.00
834,600.00

$7,354,900.00
143,000.00
414,800.00
1,800,700.00
5,153,000.00
45,183.500.00
702,000.00

$108,361,961.34
68,554,299.52

$144,042,303.13
56,127,956.69

$6,998,796.28
928,202.76
600,000.00

$6,716,347.45
939,595.83
267.000.00

8,526,999.04
517,999.80

7,922,943.28
349,966.35

8,008,999.24
431,120.32

7,572,976.93
333,248.27

503,831,283.56

452,255,524.43

$232,614,585.00

$198,515,485.00

$171,928,292.76
983,276.06
883,193.99
986,490.10
372,107.63

$163,018,753.32
4,202,766.12
216,112.81
822,822.87
84.837.40

175,153,360.54
59,105,427.58

$168,345,292.52
49,460,169.27

13,175,800.00
22,893,597.54
888,512.90

12.756,550.00
22,461,832.66
716.194.98

$503,831,283.56

$452,255,524.43

LIABILITIES
Federal Reserve notes in actual circulation
Deposits:
Members—Reserve account
U. S. Treasurer—General account
Foreign banks
Npn-members—Clearing account
Official checks and drafts outstanding
Total deposits
Deferred Availability Items
Other Liabilities:
Capital stock paid in
Surplus fund
Miscellaneous liabilities
Total Liabilities




20

Profit and Loss Account—1925
Net income available for dividends, reserves and surplus, January 1, 1925 to
December 31, 1925
Distribution:
Dividends paid to members
Depreciation allowances on bank premises
Reserved for self insurance and undetermined liabilities
Transferred to surplus

Volume of operations in principal departments
1925

1924

_ .

13,177
29,668
8,672
145,093,000
183,291,000
68,887,000

11,036
28,427
10,059
135,693,000
176,965,000
68,039,000

.

5,066,000
381,000

5,475,000
442,000

819,000
95,000
3,355,000

2,483,000
90,000
3,530,000

$3,158,818,000
115,585,000
874,797,000
16,519,000
26,652,411,000

$1,348,025,000
116,070,000
833,126,000
14,419.000
23,874,737,000

64,834,000
476,805,000

64,778,000
427,264,000

324,788,000
5,333,830,000

348,600,000
4,752,346,000

Number of pieces handled
Bills discounted:
Applications
Notes discounted

„

_

Bills purchased in open market

__ . .

_ __

__ .

Collection items handled:
U. S. Government coupons paid..
All other

. . . .

U. S. securities—issues, redemptions and exchanges

Amounts handled
Bills purchased in open market .

.

Collection items handled:
U. S. Government coupons paid
All other

._

U. S. securities—issues, redemptions and exchanges




21

BILLS AND SECURITIES
1924

BILLS

1925

(END OF M O N T H

MCUONS OF DOLLARS

FIGURES)

M I L L I O N S OF DOLLARS

WSCOUNTE)

CHART. I

GOLD RESERVES
AND FEDERAL RESERVE NOTE CIRCULATION
1924

1925

(END OF M O N T H FIGURES)

M I L L I O N ? n r n o L i AB.S

Ull I IONS OF DOLLARS

GOLD RESERVES

CHART

II

ANALYSIS OF EARNINGS & EXPENSES
FOURTH DISTRICT
(TEAR ENDING
DISTRIBUTION OF EARNINGS
j goa ,622.000

MEMBER

DISTRIBUTION OF

SALARIES
V WAGES

DIVDENOS

EXPENSES

INT. ON
INT. ON
BORROWED 0EP0S1TS
MONET

DISTRIBUTION
LOSSES

BANKS

JUNE 3 0 , I 9 3 i )

OF

LOSSES

$142,792,000

TAXES

$14,464,000

W *
I3.«"fo

33.0**°

Oh
UNOIVIOED PROFITS 9 . 2 *




ON LOANS

ON SECURITIES

CHART til

OTHER
EXPENSES

OTHER