The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
To the Banks in the Fourth Federal Reserve District: We are pleased to present this report of the activities of F ederal Reserve Bank of Cleveland for the year 1962. To those who expected more and attained less the year was a disappointment. However, to most it was a period of moderate improvement marked by price stability, a gradual improvement in employment, and a better utilization of plant capacity. A talked about downturn in the fourth quarter did not occur. The responsibilities of the Federal Reserve System as the monetary authority of the United States were compounded by a lethargic economy. Measures were taken to maintain an availability of mon ey and credit appropriate to the domes tic situation while being ever mindful of the problems pos ed by a continuing adverse balance of international payments. JOSEPH B. H ALL Any hope for a successful monetary policy lies in the ability constantly to obtain adequate current business and financial information. An article in this report illustrates the contributions made by banks to the formulation of policy. W e gratefully acknowledge the carefully considered counsel given us by the leaders of industry and finance in the Fourth F ederal Res erve District. WILBUR D. FULTON Pres id e nt The Year 1962 in Business and Finance - ---------------- 2 Improving the Flow of Banking Information _________________ 6 Chronicles of 1962 ----------------------~------------------- 10 Comparative Statement of Condition ---------------------- 14 Comparison of Earnings and Expenses Directors ------ - - -.------------- -------------~------ 15 ------------- 16 Officers ----------------------------------------- -------------------- 17 Cincinnati Branch Directors and Officers ----------~-------- 18 Pittsburgh Branch Directors and Officers -------------------- 19 Notes on Main Office and Branches ---------------------- 20 THE YEAR 1962 The year had its share of surprises along with much that could best be described as a continuation of "more of the same". A pair of outstanding developments, which interlocked with eac other, were two "corrections" of considerable scope. One was a correction of stock market values which came to a head in late May. The other was a correction of faulty forecasts of business, effected by the unfolding of events which were at odds with the predictions. More properly, the latter was a series of corrections, but the climax may be dated in November when the previously growing stream of recession forecasts gave way to a turn toward relative optimism, as events failed to evidence any recession. It was not a banner year for business forecasters. 2 Altogether, it was a year of moderate growth in business activity, with many aspects of a high-level plateau in the second half. Gross National Product for the year rose b y about 7 percent from 1961; the gain in the Index of Indush·ial Production for the year was n early 8 percent. Retail sales showed a margin of about 7 percent from the previous year. (The annual comparisons, of course, are affected by the fact that the first few months of 1961 had constituted the trough of a mild recession.) The pace of economic growth during most of th e year 1962 fell short of generally d esired standards. Stickiness of th e unemployment problem was a matter of broad concern, although absolute magnitudes or levels of tmemployment were not of recession proportions. The steel and auto industries, as often, contributed much to the drama, and at least a fair amount to th e statistics, of the business year. Estimates of the year's output of autos were continually revised upward as the year wore on, as it became apparent that it was really a good year for auto sales and production. Estimates of steel output for the year were continually revised downward, as it became increasingly apparent that steel buyers had stocked up very heavily b efore the strikewhich did not occur. Bearing in mind that autos are made from steel, among other materials, one might have wondered how it could have been such a good year for the auto indush·y and such a relatively disappointing year for the steel industry. The answer lay, of course, in the steel inventory cycle. Total business inventories, as contrasted with steel stocks, however, showed a picture of moderate inventory building during th e year, at least without enough fluctuations to produce a recession in general business. Business expenditures for new plant and equipment provided a support to activity in 1962, scoring a 9 percent gain over corresponding outlays in th e previous year. The pattern and prospects for this highly strategic factor, however, seemed to add to uncertainties of business sentiment. Two measures taken by tl1e F ederal government during 1962-one to ease tax rules on depreciation and the other to provide a tax credit on plant and equipment investment -showed some promise of stimulating this important sector of the economy, although opinions differed on tl1e dimensions of the results that might be exp ected. Corporate profits showed no surge at all in 1962. The aggregate for the year w as larger than the 1961 total, but little if any gain from tl1e scoring of th e fin al quarter of 1961 was registered as 1962 progressed. (Th e figur es on profits have not yet come to rest.) An enlarged recognition of th e 3 importance of profits to the growth of the economy, as compared with previously expressed attitudes, was evidenced in statements expressed during the year from halls of learning and from offices in Washington. The steel-pricing ques tion, with its dramatic episode in April, is thought to have had as one of its by-products an und erscoring of the importan ce of the pro£ts qu estion for business investment and economic growth. Financial Developments. Banking activities during 1962 turned out to b e fairly brisk, after all. Loans b y commercial banks v ·ere up by almost 10 percent from cars 962 BOO 600 """'- 400 \... ~ v ,.. 'r ~ \ ~ I ~ ........ .. v 19 61 v UN DJU' ED F M ard's data A M J J A s 0 N ... the auto industry had a good year. 4 ::::.. \ \ !J f--'\ \ v 0 J ~ J/ 200 M1llio s of net tons 1st Q (weekly) 2nd Q 3rd Q 4th Q . the steel indushy operated at reduced levels d uring the second and third quarters of the year. AUTO PRODUCTION Thou nd s STEEL PRODUCTION D the previous year ; commercial and industrial typ es of loans were up by about 8 percent. Bank holdings of inveshnents also increased moderately, unlike the situation in some years of expanding loan volum e, when inves tments had to b e sold off to make way for the loan volume (som etimes at the cost of substantial loss). Credit was plentiful. The F ederal Reserve help ed to make it so. So far as policy was concerned , th e Federal Reser ve System, in close coop eration with the Treasury, was doing a balancing act- not an unusual posture. This time, the tightrope ran between the financial requirements associated with the need to stimulate the domestic economy on th e one side, and th e imperatives associated with U. S. balance-of-payments considerations, on the other side. Th e fact that some critics have appraised the System as leaning too far to the domestic side, while others suggest that too much weight has b een given to international considerations, does not, in itself, constitute a proof that precisely the proper balance was achieved. Greater p erspective, with th e pass age of tim e, will b e required for a conclusive judgment. So far as this country's balance of international payments is concerned, efforts to reduce the d eficit and to move toward an early achievement of balance proceeded on many different fronts , impinging only in part on questions of monetary policy. Repercussions stemming from fluch1ations in the Canadian dollar, climaxed by a devaluation and p egging of that currency, produced some adventitious aids to the U. S. payments position in the second quarter of the year, followed b y equally temporary downdrags on the U . S. position in th e third quarter. Loss of gold by the U. S. was not stemmed in 1962. Th e problem remains a central one for U. S. financial policy. In the fourth quarter of 1962, the handling of th e Cuban crisis, and the im- plications of th e outcome, had important reverberations on the domestic business scene as well as on broader aspects of world affairs. (Reverting to the opening th eme, th e events of late October might b e called th e third and most important of all "corrections" of the year, i. e., a correction of any Kremlin misappreh ensions about th e decisiveness and will of the United States.) The side effects on business in this country seem to have taken th e form of a general, although intangible, strength ening of optimism, reflected in part in stock market quotations. It was imm ediately after the resolution of th e core of th e Cuban crisis that talk of recession in th e U . S. tended to diminish-a connection th at vvas probably more than coincidence. In D ece mber, th e n ew-found turn to relative optimism appeared to continue, even though general business activity had to push against obstacles posed by a combination of snowstorms and newspaper strikes in more than one city, including Cleveland. As th e year drew to a close, increasing attention was given to questions of tax reform , tax cuts, and budget deficits-all in th e context of a generally desired goal of economic growth without financial dislocation. Further highlights of the year 1962 are suggested by th e center spread of this report, appearing on pages 10 and 11 under th e titl e "Chronicles of 1962". 5 IMPROVING THEFLOWOF Banks, like other business concerns, need to operate in the light of statistical information. Current trends in banking, as well as general business trends, must be understood. Concurrently, for quite diHerent reasons, the Federal Reserve System must have up-to-date information; such intelligence is required in order that the System may discharge its responsibility for determining and implementing the nation's monetary policy. In the discharge of its responsibility, the System works through the commercial banking system. It is thus essential for the System to know as much as possible about the influence of monetary policy on commercial banks. 6 The System, therefore, is a primary collector ( although not the only collector) of current data on commercial banking. Information is gathered, summarized, analyzed, and interpreted. Hesults are sent b ack to the banks and made available to the public generally, as w ell as utilized directly in the determination of monetary policy. In a continuous effort to improve the Row of banking information, the F ederal Heserve Bank of Cleveland plays its part along with the other eleven F ederal Heserve banks and the Board of Governors of the Federal Heserve System. During the year 1962, some notabl e advances were made in this conn ection. A few of them, which will be highlighted in the remarks that follow , apply particularly to the collection of data on Federal funds , reserve positions of member banks, bank debits , and selected types of loans made by memb er banks. It is fully recognized by all parties to such statistical transactions as are d escribed here that the need for b etter information on current banking is only one side of the coin . An equally important side of th e ma tter is the burden involved in preparing th e figmes at the somce ( i. e., at the individual commercial bank ) to b e transmitted to th e F ed eral Heserve for summary and process in g. The well-known irritations of busin ess concerns at increas ing burdens of paper work, which often are hard to reconcile with th e highl y important efforts a t cost cutting in general, are by no means unkn own in the banking world. Th e days are gone when any statistical collecting agency, including th e F ederal Heserve, may simplv decide that certain types of figures are "desirable" and direct that they b e supplied, forthwith. Needs must b e balanced against burden. Duplication must be avoided. Frequent consultation among commercial bank officers an d representatives of the F ederal Reserve Bank are held to work out a well-balanced program. Most, though n ot all, of th e figures collected by the F ederal Heserve are supplied by the commercial b anks on a voluntary basis. Some figures are required by law, supplemented b y administrative regulation. In either case, a mutual understanding b etween the collecting agency and the reporting enterpris e is necessary to a successful program. An enlargement of the general area of understandin g and an improvement in its quality have b een effected in recent years through th e combin ed efforts of the parties involved. Yet many problems rem ain . Long ago, th e reporting system would have broken down, were it not for the willingness of reporting banks to cooperate, not only where they directly benefit from the return Row of information, but also where th e general goals of th e monetary authority indicate a need , even though the return flow of information may b e of little direct benefit to th e individual reporting banks. The advent of electronic data processing, both at the F ed eral Heserve Bank and at many of the commercial b anks, has already shown substantial b enefits in th e form of speed, efficiency and flexibility in 7 ' > ' ' - • ~ ' ' ' • l FLOW OF ·BANKING INFORMATION I ~ '- ,,.. .J . - I Assets and L iabilities D eposits, Reserves and Related Items Reserve Position = ,- Bank .Debits Savings D eposits of Individ uals II I I I Consum er Credit- B,mks Consumer Credit-Consumer Finance Companies Consumer Credit-State Credit Unions Consumer Credit- Federal Credit Unions Consumer Credit-Industri al Loan Companies Consumer Credit-Sales Finance Companies D ealer Cost Ratios and Maturities on Automobile Loans Condition Statement of Selected Member Banks Commercial and Industrial Loans by Industry Commercial and Industri al Loans by Ind ustry and by Maturity I I I I I I I I I Cleveland C lea rings Interest Rates On Short-Term Business L oans X X I Weekly Selected Reporting Ban ks Member (Member and Ban ks 1'\onmcmb c r ) I.X I I I I I I I I I I I I I I I I I I I I I I I I I I I I O the r Fi nan c ial Institutions X X X Numbe r of R e porting I n stitution s I I[ II f I I II I I I I I I 533 533 533 144 45 50 I X X X X X X X '' ' O u tgoi n g I n co m ing I Semimonthly I II II I I I Sen1imonthly D a ily WeeklyBiweekly D a ily Biweekly Monthly Monthly Monthly I I I Monthly Monthly Monthl y I I I I I I I I X 21 Monthly Monthly X 15 Mon thly Monthly X 48 Mo nthly Monthly X X I I I I 3 8 16 26 I I I I Monthly Monthly Monthly Weekly I l I I I I I I I I I I Monthly Monthly Monthly Weekly 21 W eekly Weekly 21 W eekly Quarterly 6 5 9 N OTE : The se ries sh ow n above do n ot p urport to represent all financial information collected by the Fede ral Rese rve Bank of Cle veland. Othe r type s of in fo nn ation include call re po·rt data and special survey in formation . 8 -1 I I I I I I I I I I I I I I I F ederal Funds X I ~ -,~' F R EQUE NCY OF REPORTS SOURCE OF INFORMATION All Me mber Ban ks .,, FEDERAL RESERVE BANK OF CLEVELAND I Da i~y I Daily I I Daily Twice a Week Quarterly Quarterly · handling data . Many needed typ es of summary information and analysis have now b ecome feasible which previously were impossible of attainment. But the changes resulting from automation have by no m eans eliminated the tasks involved in improving the reportin g r elationship b etween comm ercial b ank and cenh·al bank. In som e cas es, automation h as simplified the problems; in other cas es, it has complicated them , at least temporarily. On balance, the potentialities for betterment which are unleashed by automation are widely ackn owledged. It remains now to r eview some of the specific changes of the past year in th e r eporting syst em. The changes under discussion apply to only a few of th e statistical series maintained by th e F ed eral Reserve Bank of Cleveland. A more extensive list of the financial series maintain ed by th e Bank is shown by an accompanying tabl e. Federal Funds A major change in the past year in the Row of banking infonn ation occurred in th e collection of data on F ederal funds transactions , i. e., the borrowin g and lending of member bank balances h eld on d eposit at the F ederal Reserve banks. Availability of this type of information is important to th e F ederal Reserve Sys tem b eca use of th e role that F ed eral funds tra nsacti ons pl ay in evening out pressures throughout the nation al mon ey market. In conjunction with fi gures on the geographical distribution of r eserve totals , reserve requirem ents and member bank borrowing at the discount window, such fi gures throw additional light on local credit conditions . In September , 1962, a n ew national reporting program for F ed eral funds w as introduced by the F ed eral Reser ve System . Th e new procedure followed a compreh ensive three-year pil ot program to determine the types of F ed eral funds data that would be most helpful in administerin g mon etary policy. The judgment made in September was that more tim ely information was needed, but th at th e inform ati on could be less detailed than previously r eported and could be obtain ed fr om fewer b anks. Thu s, in this District, th e number of cooperatin g b anks r eporting information on F ed eral funds transactions was reduced from 18 to 6. The six b anks c urrently report their purch ases and sal es of F ed eral funds along w ith fi gures on their reserve positions. Th e inform ation is reported daily to this Bank. After b ein g processed, summary information is w ired promptly to the F ederal Reserve Bank of New York, where it is collated with sim ilar data from oth er Districts and m ade availabl e for us e b y thos e who are r esponsible for conducting System open market op erations. A m ore compl ete report on information from th e Fourth District is transmitted at a later tim e to the Board of G overnors in vVashin gton . Daily Reporting A different kind of reportin g ch ange, more far-reachin g in its application than that involved in F ed eral fund s, was als o effected in 1962. (Continued on page 12) 9 ALGERIAN COA PEACE BATTLES IN VIETNAM U.S. Troops to Tha iland Interest Ceiling Raised on Time Deposits 25% (/r. 0 ~ Federal Reserve Starts Foreign Currency Operations CANADIAN DOL[ PEGGED AT 92. - good news on U.S. balance o STEEL WAGE SETTLEMENT ---build-up of steel stocks--- I INVE. draw-down of s Supreme Co u rt Decisio n Hit s R u ral Voting Powe r White House vs. U .S. Steel, repri ce GLENN SPACE FLIGHT Carpenter Orbits Ea Powers-Abel U.S. resum e s atmospheric tests exchange Ranger IV crashes on moon BERLIN WALL ANNIVERSARY .. . t-e-n-s-i-o-n TION GOV'T II LAOS vs. INDIA CUBAN CRISIS Britain to join De G aulle w ins French elections Common Market? (Commonwealth says maybe) common stock prices Adenauer cabinet crisis " W'itholding Tax " Defeated •ec.o'~ef (portly) stocks • Federal Reserve Lowers Margin Requirements lR Federal Reserve Reduces Reserve Requi rements (ti me deposits) big b udget d eficit fo r fiscal '63 payments - - n e w s not so good on U.S. balance of payments- - - - recession talk - - - - 7% investment tax credit passed 'TES INDUSTRIAL PRODUCTION FLATTENS Improvement in business news 'IGATION Depreciation Rules Liberalized less r ecession talk ~elstocks ----------------------------------------- TRADE EXPANSION ACT ·M e dicare Bill D e feated President Goes for Tax Cut Ne xt Year Celebrezze HEW chief h Goldberg to Supreme Court 2 Russians in record orbits Congress Adjourns RECORD OFF-YEAR VOTE Mississippi Schirro 6 orbits TELSTAR LAUNCHED M ass. mail robbe r y Thalidomide scare N . Y . Yankees again Venus probe (Continued from page 9) In July, this Bank introduced for the member banks in the Fourth District a major change in the required reporting of reserve positions. At that tim e, a shjft was made to the daily reporting of deposits and related items. Such a shift was in line with similar moves which had b een taken earlier by several other F ed eral Reserve banks. Previously, reserve city banks had reported to the F ed eral Reserve Bank of Cleveland on a vveekly basis, while country member b anks had reported on a biweekly basis . A number of reasons underlay the adoption of daily reporting in this and other Dish·icts. Large advantages accrue to th e Federal Res erve System in the implementation of monetary policy as a result of having up-to-date infonnation on the reserve positions of member hanks-on items such as reserve balances, vault cash holdings, and deposits. This information furthers understanding of changes in the nation's money supply, of deposit flows , of factors affecting bank reserves , and the like. An important advantage accruing to individual member banks from a system of dail y reporting lies in an opporhmity for each bank to keep fully inform ed as to the status of the individual items in its own reserve position, thus h elping in th e management of that position. To put th e matter differently, daily reportin g h elps individual banks to keep up to date on th e inflows and 12 outflows of ftmds that are the determinants of its reserve position. To that end, reports of reserve positions, prepared on th e computer at this Bank, are sent to individual member banks shortly after the end of their resp ective reserve periods, thus enabling each bank to check and confirm its calculations of reserve position . Bank Debits A third major step which was taken in the past year to improve the How of banking information in the Fourth District relates to the processing of information on bank debits. Bank debits are the charges against d emand deposit accounts resulting from check payments. Bank debits are available sooner than many other types of economic information and are available for a much larger number of reporting centers. Since bank debits provide prompt and accurate information on checking account activity on a regional and local basis, considerable attention has b een paid to improving these data in the Fourth District for us e in analyzing business activity in local areas. After careful consideration of various alterna tive methods , an adjustment techniqu e has b een adopted by this Bank, which , we feel, will make th e data more meaningful as a barometer of local busin ess conditions. Thus , in conn ection with th e regul ar processing of incoming monthly debits da ta, the figmes are now adjusted for ( l ) th e number of workin g days in each month and ( 2) n01mal seasonal variation. Bank debits, as now adjusted in the Fourth District, are more meaningful and more usable for those interested in analyzin g chan ges in business activity in local areas. Beginning with May 1962, the release on bank d ebits published by this Bank for 35 centers was altered so as to incorporate the results of the n ew adjustment techniques. Commercial and Industrial Loans Still another important improvement in the flow of bankin g information that has taken effect in the past year deals with busin ess loan figures, classified by industry, which are reported weekly to this Bank b y selected member banks in eight major cities within the District. In line with a n ational program, the F ederal Res erve Bank of Cleveland, in November 1961, converted the reporting of commercial and :industrial loans from the old basis of net changes in outstandings to total outstandings. This bank was able to make the conversion well in advance of the deadlin e date, through th e cooperation of reporting banks in the Fourth District. Moreover, through the further cooperation of the reportin g b anks , this Bank now obtains a breakdown of busin ess loans by maturity. Such inform ation is not part of the national program. Reporting banks in this District classify busin ess loans as "under one year in original m aturity" or as "more th an one year in original maturity." This information h elps us, and reportin g banks as well, towards a b etter understandin g of the uses and chan ging p atterns of bank credit. Thus, fi gures are now available on business loans outstanding at reporting b anks in major cities in the Fourth District, both by busin ess of borrower, and by original maturity of loan. W eekly releases of th ese data are not currently published by this Bank. However, total figures for the District an d for selected cities are mad e available on a weekly and quarterl y b asis to respondent banks and to individuals who have evinced an interest in such information . Because the national program for convertin g commercial and industrial loans, by industry group, to an outstandings b as is is still not complete, total figures for th e U. S. are not yet available for comparative purposes. The value of figur es now available has b een well established b y th e insights th at have been gained as to business lendin g practices at banks which report to the F ederal Reserve Bank of Cleveland. Comparisons of Fourth Dish·ict fi gures with similar inform ation for b anks in New York City, as published by the F ederal Reserve Bank of New York, reveal important differences in regional lendin g patterns . 13 ASSETS Dec. 31. 1962 Dec. 31. 1961 'S 1.:2.3 4.87 4.-'381 11:2,001 ,51 '1 $1,305,989,.568 105,023,275 I .36fi,R7'i,H:2G 1,411,012,843 Federal Heserve Notes of Other Banks _-------------------Oth er Cash --------------------------------------------------------------- :27 .690.6:20 :20,:24l.J7.'i 35,451,160 25,741,473 TOTAL CASH ------------------------------------------------Discou nts a nd Advances ------------------------------------------U. S. Government Securiti es: Bills ----------------------------------------------------------------Certificates ___ _ --------------------------------------------------------Notes _____ -----------------------------------------------------------------Bonds -------------------------------------------------------------------TOTAL U . S. GOVERNMENT SECURITIES ___ _ TOTAL LOANS AND SECUHITIES __________________ _ l. 111 ,ROR.0:21 1,472,205,476 :249,000 1,695,000 196,:364.000 270,758,000 144,109,000 1 ,694,530, 000 326,098,000 Gold Certifica te Accou nt ________________________ -------------------Redemption Fund for Federal Reserve Notes __________ _ TOTAL GOLD CEHTIFICATE RESERVES _____ _ I 0.5 9,97-'3,000 861 ,788,000 "3!32,641.000 2.4.50,766,000 2,435,495,000 :2.451.01.5,000 2,437,190,000 Cash Items in Process of Collection ______ _ -------------Bank Premises _______ _ __________________ ___ ·------------------------Other Assets ------------- _ ------------------------------------------- 7:21.01 -'3 ,6.59 7,275,091; 29,726,4111 581 ,471 ,894 8,014,335 20,259,984 ----------------------------------~---- '34.6:2:3.83R. l94 $4,.519,141,689 F ederal Heserve Notes ------------------------------------------ .S2.679,7 4:2.:2.30 Deposits: Member Bank-R eserve Acco unts ________________________ _ I .201.04 :3.442 U. S. Treas urer-G eneral Account _____________________ _ :3R.220.7.1 1 Foreign ___________________ _ ___________ _ ____________________ _ :24.440,000 I :3.R..JR ..'J.'l7 Oth er Deposits __ ----------------------------------------------------1.277,.5. '12.7'30 TOTAL DEPOSITS _______________ -----------------------Deferred Availabili ty Cash Items _____ _ _____________ _ .'):30.R:32,R--1 I Oth er L iab ilities __ _________________ ----------------------- ___________ _ .'5.2.'\7,79:\ --TOTAL LIABILITIES __ __ _ _________ _ $2,624,593,460 TOTAL ASSETS LIABILITIES 1,301 ,181,974 36,664,583 24.645,000 4,025,385 1,366,516,942 398,044,162 5,079,275 4,394,233,839 CAPITAL ACCOUNTS Capital Paid In __________________________ _________________ Surplus ------------------------------------ ------ ____________________ ..... _ 1:3..184.:200 S6.96R.400 41 ,635,950 83,271 ,900 _____________ ___ <;;4 , 62 :3, 8:3 1i . l ~Jl $4,519,141,689 Contingent Liability on Acceptances Purchased for Foreign Correspondents ------------------------------------------- 7.00-5 .. J()(l TOTAL LIABILITIES AND CAPITAL ACCOUNTS ___________ _______ 14 $ 11,625,000 1962 1961 $88,180,787 15,143,856 $79,846,773 13,832,717 / .'3 ,0.'36,9.'31 66,014,056 167,498 27,030 23,005 294,917 217,53:3 177,558 418 177,976 39,557 / .'3 ,076,488 2,547,615 66,832,37.'3 -o1,157 DIRECTORS 1~ AS 01 Chairman JOSEPH B. HALL Chairman of the Board The Kroger Co. Cincinnati, Ohio Depvly Chairman LOGAN T. JOHNSTON President Armco Ste!"l Corporation Middletown, Ohio FRANK E. AGNEW, JR. President Pittsburgh National Bank Pittsburgh, Pennsylvania WALTER K. BAILEY Chairman of the Board The Warner & Swasey Coinpany Cleveland, Ohio AUBREY J. BROWN Professor of Agricultural" Marketing and Head of Department of Agricultural Economics University of Kentucky Lexington, Kentucky DAVID A . MEEKER President The Hobart Manufacturing Company Troy, Ohio C. N. SUTTON President The Richland Trust Compa11y Mansfield, Ohio EDWIN J. THOMAS Chainnan of the Board and Chief Executive Officer The Goodyear Tire & Rubber Company Akron, Ohio PAUL A. WARNER President The Oberlin Savings Bank Company Oberlin, Ohio Member, f.ederal Advisory Council LELAND A. STONER President The Ohio National Bank of Columbus Columbtis, Ohio 16 63 OFFICERS JAN . l WILBUR D. FULTON ·-··----·--------------------· President DONALD S. THOMPSON -- -------·-·--·---- First Vice President W. BRADDOCK HICKMAN ___________ Senior Vice President ROGER R. CLOUSE --·--··---···--·-·· Vice President and Secretary GEORGE H. EMDE ·---------·--·---·-·-------·-·-·------------- Cashier EDWARD A. FINK ---------------·----··---·-···--··---- Vice President CLYDE HARRELL ----------·----·-------- Vice President FRED S. KELLY ---------------····-······-·--·· Vice President FRED 0. KIEL ----------------~--------···- Vice President MARTIN MORRISON ------~-------·---·-··------ Vice President PAUL C. STETZELBERGER --------------------- Vice President ELFER B. MILLER ----- --------------------·---·-- General Auditor PAUL BREIDENBACH -- ---·--·-··--------------------·------------ Counsel PHILLIP B. DIDHAM ___________________ Assistant Vice President ELMER F. FRICEK _____________________Assistant Vice President ROBERT G. HOOVER _________________ __Assistant Vice President JOHN J. HOY _____________________________ Assistant Vice President HARRY W. HUNING _______________________ Assistant Vice President GEORGE E . BOOTH JR. --------------------- Assistant Counsel ADDISON T. CUTLER - ------------------ Special Economist MAURICE MANN ________________ Senior Mon etary Economist GEORGE T. QUAST ----------------------------------- Chief Examiner DONALD G. BENJAMIN ------------------------- Assistant Cashier CHARLES E. CRAWFORD _____________________ Assistant Cashier ANNE J. ERSTE ---------------------------·------R. JOSEPH GINNANE -------------------------VllLLIAM H. HENDRICKS --------------------CLIFFORD G. MILLER __________________ Assistant Assistant Assistant Assistant Cashier Cashier Cashier Cashier THOMAS E . ORMISTON JR. ------------------ Assistant Cashier ALVAH R. MILLS ______________________ Assistant General Auditor LESTER M. SELBY ----------------------- Assistant Secretary 17 1963 BRANCH DIRECTORS AS Of JAN 1 Cincinnati DIRECTORS Ch a irman HOWARD E. WHITAKER Chairman of the Board The Mead Corporation Dayton, Ohio WALTER C. LANGSAM President University of Cincinnati Cincinnati, Ohio H. W. GILLAUGH President The Third National Bank and Trust Company of Dayton, Ohio Dayton, Ohio BARNEY A. TUCKER President Burley Belt Plant Food Works, Inc. Lexington, Kentucky G. CARL TON HILL Chairman of the Board and President The Fifth Third Union Trust Company Cincinnati , Ohio JOHN W. WOODS, JR. President The Tlurd National Bank of Ashland Ashland, Kentucky JOHN W. HUMPHREY President The Plulip Carey Manufacturing Company Cincinnati, Ohio OFFICERS FRED 0. KmL ---- ------------------- Vice President J. GEERS -------------------------------- Cashier JoHN BIERMANN, JR. ________ Assistant Cashier GEORGE W. Hunsr ____________ Assistant Cashier WALTER H. MAcDoNALD ___ Assistant Cashier PHIL 18 AND OFFICERS Pittsburgh DIRECTORS Chairman WILLIAM A. STEELE Chairman of the Board and President Wheeling Steel Corporation Wheeling, West Virginia JAMES B. GRIEVES President Commonwealth Bank and Trust Company Pittsburgh, Pennsylvania G. L . BACH Maurice Falk Professor of Economics and Social Science Carnegie Institute of Technology Pittsburgh, Pennsylvania CHAS. J. HEIMBERGER President The First National Bank of Erie Erie, Pennsylvania F. L. BYROM President Koppers Company, Inc. Pittsburgh, Pennsylvania ALFRED H . OWENS Presid ent The Citizens National Bank of New Castle New Castle, Pennsylvania S. L. DRUMM President West Penn Power Company Greensburg, Pennsylvania OFFICERS CLYDE HARRELL - ------------------ Vice President Cashier Cashier Cashier Cashier JoHN A. S c:HMIDT --------------------------PAUL H. DoRN ---------------- Assistant CHARLES E. HouPT _________ Assistant RoY STEINBRINK _____________ Assistant J. 19 NOTES ON MAIN OFFICE AND BRANCHES For non-banker readers of this report, the following notes may help to clarify th e position of the branches in relation to th e Federal Reserve Bank. The Federal Reserve Bank of Cleveland is not a bran ch of any oth er insti tution, althou gh it is subject, along wit h th e other eleven Fed eral Reserve banks, to the general supervision of the Board of Governors of the F ed eral Reserve System in ~'ashington. As a part of th e central banking system of th e United States, its operations are closelv coordinated with th ose of the oth er F ederal Reserve ba nks. In its capacity as "central bank" for the Fourth F ederal Reserve District, th e F ederal Reserve Bank of C leveland has two branches, in Cincinnati and Pittsburgh, respecti vely, each with its own directors and officers as shown on th e preceding pages of this report, and each of which operates under the supervision of the Main Office. Almost all of the Bank's service operations such as check clearance, provision of coin and currency, fiscal agency function, etc. are directly provided within a sub-distri ct terri· tory by the two branches, under general management of th e ivfain Office. The bank examination ftm ction, however, as well as eco nomi c research activi ty, is carried on at the Main Office. Contributions to th e formation of national monetary policy are made prin cip ally by th e Presid ent and the members of th e boards of directors. The Main Office of the Federal Reserve Bank of Cleveland serves directly the member banks located in the north ern and central portions of Ohio, including such centers as Cleveland, Akron, Canton, Youngstown, Toledo, Lima and Columbus. Deposits of member banks located within the Main Office tenitory amounted to $8,995 million as of D ecember 31, 1962. Tota l number of checks cleared a t the Main Office during 1962 amounted to 160 million. At th e end of th e year 735 were employed at the Main Office. Main Office, Clevela11d Pittsburgh Bran ch Building The Cincinnati Branch of th e F ederal Reserve Bank of Cleveland serves directly th e member banks located in the southern portion of Ohio and the eastern half of Kentucky, including such Ohio centers as Cincinnati, D ayton, Springfield, and HamiltonMiddletown as well as L exington and Ashland in Kentucky. D eposits of member banks located within the Cincinnati Branch territory amounted to $3,142 million as of D ecem ber 31, 1962. Total number of checks cleared at th e Cincinnati Branch during 1962 amounted to 101 million. At th e end of th e year 325 were employed at the Cincinnati Branch. The Pittsburgh Branch of the Federal Reserve Bank of Clevelan d serves directly th e member banks located in th e western portion of Pennsylvania and the panhandle section of W est Virginia, including such cen ters as Pittsburgh, Erie, and Wheeling. Deposits of member banks located within th e Pittsbnrgh Branch territory amounted to $5,204 million as of Decem ber 31, 1962. Total number of checks cleared at the Pittsburgh Branch during 1962 amounted to 106 million. At th e end of th e year 410 were employed at the Pittsbmgh Branch. Ci11cim:ati Bra11ch Bnildi11g DISTRICT