View original document

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