The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
I annual Federal Reserve Bank of Cleveland - 1965 To the Banks in the Fourth Federal Reserve District: We are pleased to present the Annual Report of the Federal Reserve Bank of Cleveland for 1965. On behalf of the directors, officers, and staff, we gratefully acknowledge the cooperation and assistance of the agricultural, commercial, educational, financial, and industrial leaders of the Fourth District, who have given generously of their time and effort in helping us carry out our responsibilities. By almost any standard of measurement, the year 1965 was one of the most successful in the nation's and the District's economic history. In the jargon of the times, nearly all economic indicators were "A-O.K." Thus, both in the District and in the nation, production and income expanded substantially, employment rose markedly, and unemployment receded significantly. Indeed, by year end, the problem of a possible straining of resources was coming to the fore. During 1965, the nation's balance of international payments showed moderate improvement over previous years. Bankers in the Fourth District made an important contribution to this improvement. Against the background of a vigorous, expanding economy, we have devoted this Annual Report to a discussion of the "challenge of education." Quality education at all levels and ample educational opportunities are basic ingredients of a favorably performing economy. Education in the nation is a major growth industry that constantly faces new and exciting challenges. This is no less true in the four states that are wholly or partly within the Fourth Federal Reserve District. In these states, enrollments at all levels of education account for about 14 percent of enrollments in the nation, and spending for education accounts for approximately 10 percent of the national total. Considerable progress has been made in meeting the burgeoning demands of education in recent years, but the accomplishment is by no means complete. Indeed, the task is only beginning since demands for education in the years ahead will necessarily mount. Success in meeting these demands-in the Fourth Federal Reserve District as well as in the nation-will go a long way towards enhancing the quantity and quality of our future economic output. -J~~jN.~ Chairman President challenge four Education in the United fourth States is a major growth industry. While substantial progress has been made in meeting burgeoning needs, demands particularly for education, beyond high school, will con- tinue to rise sharply, thus posing a major challenge to the responsible Enrollment CONTENTS- (public levels of education authorities. and private) (elementary, at all second- ary, and higher) increased by about one- Challenge of Education Comparative . Statement of Condition 2 18 half between 1954 and 1964, or from 36 to 53 million. In the elementary where registration Comparison of Earnings and Expenses 19 was 36 percent; Directors. 20 schools and in the colleges and univer- 21 sities advanced Cincinnati Branch Directors and Officers 22 82 percent and 97 percent, Pittsburgh Branch Directors and Officers 23 Officers . enrollments much in the high more rapidly, or respectively. The greater rate of expansion of enroll- ments in secondary and higher education reflects in part the relatively 2 schools, is greatest, the increase large rise in of education district states the birth rate following World War II. It also reflects, particularly in recent years, an increased awareness of the impor- uct, had increased to nearly 6 percent an adequate financial of GNP by 1964. formidable. While future increases in enrollments Enrollment. base are indeed Problems involved in tance of education as a means of broad- and expenditures ening and social cases at the same rates as those of the equally important to those states that are high school was a past decade, they nevertheless are ex- wholly individual opportunities. economic While may not occur in all meeting the needs of education or partly within are the Fourth Fed- common standard of achievement a gen- pected to be substantial. For example, by eral Reserve District - eration ago, college and graduate school 1975, if current trends continue, Pennsylvania, and West Virginia. (The re- education ment in higher education will have dou- lationship bled again. On the other hand, projected Fourth District is shown on the map on rates of increase from the present to 1975 the back cover. For the purposes of this in elementary and secondary enrollments report, each of the four states identified have now become more fre- quent goals. Total expenditures for education in the United States are an indication of the enroll- Kentucky, Ohio, of these four states to the magnitude of the expansion. The costs of are less than the college rate, or 20 per- above is considered elementary, secondary, and higher edu- cent and 25 percent, spective of its relationship cation in the United States increased from short, enrollment nearly $14 billion in 1954 to $36 billion respectively. In at all levels is expected District.) in its entirety, irre- to the Fourth Total enrollments of students to total over 70 million students by 1975, at all levels of education in the four states in 1964, or at an average annual rate of as compared in 1964 were as follows: growth of $2.2 billion. Spending for edu- These projected cation, which in 1954 accounted for less indicate that the tasks of providing than 4 percent of Gross National cational facilities and teaching staffs with Prod- with 53 million in 1964. demands for education edu- 3,166,000; 829,000; Combined, Ohio, Pennsylvania, 2,909,000; Kentucky, and West Virginia, 495,000. these figures amounted to 3 ELEMENTARY EDUCATION ENROllMENT u.s. 45 Source Millions of persons Department of Health, Biennially of doto: Projections, u.s. Federal Reserve Bonk Education, and Welfare of Cleveland HIGHER EDUCATION ENROllMENT U.S. Millions 10.0,......-~---- of persons ••••• -----..., Biennially 7.5 Four 5 ate. 0.5 "" •.• ~~ 0.4 .,oo!:??::;ii"" 0.3 ~??';i' ~~ 02 ~ w. Ohio Ky. _--- -=--e=E5~~~~~~ ~ 1954 Source of doto: u.s. Projections, Federal NOTE: in the three Doto Deportment Reserve charts of Health, Bank Education, and Source Welfare '56 of data: -------r-Vo. Department of Health, ' 0.1 __Jo '58 '60 '62 '64 u.s. _- '75 Education, and Welfare of Cleveland include public and nonpublic enrollment. 7,399,000 students, or nearly 14 percent table). Moreover, of the total enrollment education at all levels of enrollment in Kentucky in higher is expected to Virginia during 1954-64 was considerably less than in the other states of the Fourth education in the United States. Similarly, double again by 1975 (see accompany- District. In none of the states, however, spending for education in the four states ing chart). The number of college-bound is secondary enrollment taken together amounted to 10.5 percent students in Pennsylvania and Ohio is ex- nearly as fast in the next ten years as in of the total in the nation in 1964, or more pected to increase by three-fourths the preceding In each of the four states, higher eduduring the past decade experi- Recent and projected increases higher education enrollment decade. The projected rates of increase cluster at 25 percent in West Virginia by two-thirds. than $3.7 billion. cation and expected to rise in in the four for Ohio, Pennsylvania, and West Vir- ginia. For Kentucky, the projected rate enced a considerably more rapid rate of states are based in large part upon the is 29 percent. The higher rate projected increase in enrollment sharp gains in secondary enrollment be- for Kentucky reflects mainly the relative- elementary or secondary education, thus tween 1954 and 1964. As in the nation ly large number of children in the early paralleling as a whole, high school enrollment school years. (The median age of the the pattern than did either for the United States as a whole. During 1954-64, college enrollment in Kentucky increased by 120 percent, virtually doubled in West Vir- creased by more than four-fifths while in- in Ohio, Kentucky and Pennsylvania with increases of about three-fifths were not population in Kentucky is the lowest of any of the four states and two years below the national median.) ginia and Ohio, and increased by about far behind (see chart). The 30-percent The expected slower rate of increase 70 percent in Pennsylvania (see center increase in secondary enrollment in West in high school enrollment in turn is based 4 on the relatively slow growth in elemen- between 1950 and 1960 the school-age tary-age group to the higher-age groups tary school population will result in greater increases in the pop- through population the eighth 1954-64 period. (kindergarten grade) during Ohio, with the an enroll- ment increase of over two-fifths, experi- (5 to 24 years of age) as a percent of the total population increased markedly in Ohio and somewhat less in Pennsylvania. Although the school-age ulation groups at the secondary and higher education levels. Despite the varying percentage changes enced by far the largest relative gain of population in Kentucky remained virtual- in the three school-age groups between the four states at the elementary level. ly unchanged during the period and that 1950 and 1960, the percentage of indi- The increase in elementary enrollment in of West Virginia viduals enrolled Pennsylvania during the ten-year period states in 1960 still had larger school-age each state. At the same time, there was was about 30 percent. West Virginia and populations in proportion to total popu- an overall increase in the educational Kentucky were among the few states in lation than either Ohio or Pennsylvania. attainment level of the population. the nation to experience a decline or only Thus, Kentucky and West Virginia have adult population a small increase in elementary enrollment. Demographic Characteristics. Changes in the number of students en- declined, those two in school climbed for The (25 years of age and had greater burdens in educating their over) in each of the states had relatively youth than have the other two states. more education Of the three school-age groups, the and elementary (see accompanying college, secondary, in 1960 than in 1950 chart). While the rolled at the various levels of education number reflect at least three demographic fac- school group (5 to 13 years of age) in- number of those who had "some high changes in the total number of creased as a percent of the total popula- school" persons of school age, changes in the tion in each of the four states during the in each of the four states between 1950 age distribution period the and 1960, Ohio and Pennsylvania main- changes in the percentage of each of college-age group (18 to 24 years of age) tained their relative advantage. By 1960, the subgroups enrolled in school. Latest declined relatively in each state and the all four states were fairly close in the pro- data available on the school-age popula- secondary portion of the adult population tion in each state are from the 1960 Cen- stable. In the years ahead to 1975, the had "some college" training, with Ohio sus. As shown in an accompanying chart, movement of those now in the elernen- maintaining its relative leadership in the tors - within this group, and of persons in the elementary - under review. In contrast, or high school group was increased by at least 6 percent that had 5 SCHOOL-AGE 18·24 GROUPS as a PERCENT of TOTAL YEARS 14·17 YEARS Source of doto: U.S. Department of Commerce percent of those who had had four years cent study of the characteristics of the or more of college. labor force indicated a marked difference The rise in the level of educational in the level of educational attainment of attainment is due to a number of factors. employed A major reason is the increase in the real Thus, as shown and unemployed persons. in an accompanying income of families both in the United chart, in March 1964 nearly three-fifths States and in the four states under re- of employed persons (18 years and over) view. With each succeeding generation, had four years of high school or more. a larger proportion In contrast, of the unemployed members of families has been able to afford the cost of educating their children through high school and col- of the labor force, only two-fifths had at least graduated from high school. These lege. Another long-term factor has been figures suggest a correlation the substantial and continuing movement employment of the population from a rural, agricul- school. Other studies have shown that tural environment to urban, industrial areas where the importance of higher between and completion of high increased demands forworkerswith more education are not concentrated in occu- education is more apparent, and its at- pations requiring tainment more readily available. training, but rather are distributed More recently, rapid gains in the technology of the economy have greatly in- over a wide range of occupations. Role of the Federal Government. creased the demands for persons with Recognizing advanced education. For example, a re- requires 6 the highest levels of that the national an educated interest citizenry, the POPULATION YEARS of SCHOOL COMPLETED by POPULATION 25 YEARS of AGE and OVER Percentage Source of doto: U.S. Department distribution of Commerce Federal Government helping improve has moved toward education tional opportunities and educa- at all levels. In gen- below a specified minimum, currently set at $2,000. On the basis of such criteria, school districts in Kentucky and eral, this represents a shift in emphasis West Virginia will by the Federal Government in the area of as much per pupil as those in Pennsyl- education from expenditures for special vania and Ohio. purposes, somewhat narrowly defined, to more broadly conceived programs. The Elementary and Secondary Educa- receive nearly twice Other smaller programs of the Elementary and Secondary Education Act include grants to help purchase books and other tion Act of 1965, which authorized a total materials for libraries of nonprofit schools, expenditure the both public and private; grants for educa- first year, was signed into law last April. tional research and training of personnel; The Act is the largest legislative commit- grants to strengthen state departments of ment to improve elementary and secon- education; dary education ever made by the Federal education centers that will offer compre- Government. hensive guidance and counseling, authorized of $1.3 billion during The bulk of the funds is for a three-year program of grants to states, which will be allotted and grants for supplemental cialized instruction spe- in advanced science, foreign languages, art and music, as well to school dis- as for centers that will develop radio and tricts where 3 percent or more of the television broadcasts for classroom use. for current expenditures children between 5 and 17 years of age In some of these programs, special incen- come from families with annual incomes tive grants are offered to those school 7 districts that show increased efforts on tribution their own, as measured by current expen- higher education is actually understated ditures for education. in the accompanying chart. For one thing, helps to broaden the school tax base and only federal funds for current expendi- makes possible a greater equalization tures (but not for capital purposes) are educational opportunity renewed and expanded the Higher Edu- included; Revenue sources tapped by states also cation Act of 1963. This legislation higher education made indirectly through tend to keep better thorized $845 million during the first year state governments price levels and increasing personal in- to assist public and other nonprofit state The Congress has also provided assistance to higher education. In 1965, it au- insti- of the Federal Government also, federal funds. payments are included As the chart to to under indicates, elementary and secondary education of within the state. pace with rising comes than do revenues derived from tutions of higher education to finance the the Federal Government construction to portant source of funds for higher edu- support of public loans and scholarships to stu- cation in the nation as a whole than in ondary schools by the state is a more the states of the Fourth District. One rea- important families,and to provide funds for libraries son is that these states received propor- Pennsylvania, and West Virginia than in and for extension programs. tionately Ohio, or in the nation as a whole. provide dents from of academic low- facilities, and middle-income Sources of Funds. An accompanying chart shows the sources of funds for current expenditures on education in 1959- is a more im- and excise taxes. State support of public smaller amounts for research, which is the most important source of federal aid to higher education. Public elementary and property taxes. As the chart indicates, elementary and sec- source of funds in Kentucky, All levels of government, taken to- gether, provide about 45 percent of the secondary current funds for education beyond high 60, the most recent period for which data schools obtain most of their funds from school in the United States. In West Vir- are available for all levels of education. local governments, As indicated in the chart, federal aid is heavily for more than one-half of current operating proportionately school purposes. State support of public expenses for higher education, the gov- schools is usually financed by nonprop- ernment share exceeds the national aver- erty tax sources such as income, sales, age. Government greater for higher edu- cation than for public elementary secondary schools. Moreover, 8 and the con- on property which in turn rely ginia, where taxes levied government provided contributes about 36 YEARS of SCHOOL, EMPLOYED and UNEMPLOYED, percent of funds to higher education in Kentucky, 24 percent in Pennsylvania, The major sources of funds for private higher education are student and 27 percent in Ohio in the academic cluding income year 1959-60. As would be expected, the services, endowments, financial contribution Related services include of government to tuition), from fees (in- the amounts each state is influenced by the extent to cafeterias, residence halls, student unions, which and bookstores, and are approximately institutions are dominant Although private colleges and universities receive some financial support from all levels of government, such aid is a relatively distribution gifts, and grants. spent by colleges and universities public Percentage related higher education for current purposes in in terms of enrollment. U.S. LABOR FORCE 18 YEARS and OVER, MARCH 1964 fOT covered by student expenditures for these services. Elementary & Secondary Education. Source of dato: Monfhly Labor Review, May 1965 minor The table in the center of this report pre- source of funds and is primarily from the sents a profile of significant physical and Federal Government financial trends in education for the de- stantially. cade 1954-64. public elementary and secondary schools for research pur- poses. Funds for higher education by local governments provided have been com- paratively small. Contributions have been Schools and Students. percent of the enrollment More than 85 in elementary In 1964, enrollment in non- in Pennsylvania was the largest of the four states - about one-fourth of total and secondary schools in the nation is enrollment. West Virginia, with less than accounted for by public schools, and the 5 percent enrolled in non public schools, remainder by nonpublic had by far the lowest proportion. local governments, however, is expected proportion has remained approximately to become more important constant over the past decade. Among percent, the four states of the Fourth District, the public schools, were closer to the pro- extent of nonpublic education varies sub- portion primarily to municipal institutions. Sup- port of this type of higher education by ahead with colleges. the growth in the years of community schools. This Ken- tucky and Ohio, with 13 percent and 16 respectively, enrolled in non- for the nation as a whole. 9 SOURCES of FUNDS for CURRENT EXPENDITURES Academic year Percentage 1959·1960 distribution PUBLIC ELEMENTARY and SECONDARY EDUCATION Source of doto: u.s. Department of Health, Education, and Welfare Enrollment in the elementary schools amount in Kentucky and Pennsylvania increased locally. during the ten-year period under review, although the number of elementary schools in those states declined. In the case of West Virginia, both the number of pupils and the number of schools declined, and in Ohio both increased. Insofar as the secondary level is concerned, there were reductions in the number of schools in all four states, against the background of rising enrollments. Reduction in the number of elementary schools was due to the widespread closing of one-teacher schools, which in turn was facilitated by school district reorganiza- tion and consolidation of smaller dis- tricts. School districts provide chinery through which the ma- local control of schools is exercised, and are largely responsible for the location and size of schools, the types of educational grams and services 10 offered, pro- and the of financial As would support provided be expected, the size and characteristics of local school districts vary from state to state. Thus, Ohio had relatively fewer one-teacher schools in 1954 than any of the other states in the Fourth District because a reorganization program had already been instituted. Although an extensive school building program to accommodate ments occurred rising throughout enroll- the United States during the past decade, the total number of public schools did not in- crease.This was because the new schools, whether built for replacement or expansion, were designed to accommodate more pupils per school. The number of classroom teachers in the United States in both the public elementary and secondary schools has kept pace with enrollment. (Complete data on classroom teachers are not available for nonpublic schools in 1954.} How- ever, in individual states the balance As would be expected from the growth of secondary number school enrollment, of high school graduates Current expenditures have increased rap- the idly throughout the United States as well in- as in the four states of the Fourth District, creased rapidly during the 1954-64 peri- even after adjustment for changes in en- for example, the number of public sec- od.ln part, this reflected an improvement rollment, indicating that influences other ondary classroom teachers increased by in the "retention than enrollment 70 percent, while the number of students of the "dropout was not always maintained. In Ohio, rate" (the complement rate") that occurred also contribute heavily to the costs of education. high schools of the State during the most recent five-year period. Pennsylvania, with $479 per pupil, was increased by 87 percent. Similarly in Ken- Thus, public high school graduates in the the only Fourth District state that spent tucky, public high school enrollment United States in the academic year 1963- about as much as the United States aver- by 68 percent while the number of class- 64 represented age of $484 per pupil in 1964, although in the public rose nearly three-fourths of room teachers increased by 50 percent. the class that entered the ninth grade in Ohio, with an average of $465, was not On the other hand, in Pennsylvania and 1960-61, as compared with two-thirds far behind. Kentucky and West Virginia West Virginia the increase in classroom the ninth teachers graduated in 1958-59. (Comparable at the secondary level was greater than the rise of enrollment. (Although not shown separately in the center table, in the United States as a whole, the size of "other instructional staff," which includes principals, librari- grade class of 1955-56 of that fig- ures are not available for the four states less, or about $325 per pupil. One of the factors contributing to in- creased expenditures per pupil has been being discussed here.) Finances. A major problem at all levels of education each spent considerably is that of raising funds to higher salaries for instructional staff. The estimated national average annual salary meet steadi Iy increasi ng costs. (Discus- for all instructional staff in 1964 was ans, and guidance and psychological per- sion refers only to public elementary and about $6,200, which compared sonnel, virtually secondary schools, since historical figure of $3,800 in 1954. The salary figure ing enrollment.) kept pace with mount- are not available for nonpublic data schools.) includes compensation with a of principals and 11 profile of KentuckJ. United States 1954 1964 % Change 26,138 22,546 3,592 35,525 30,025 5,500 + 36 + 33 + 15 529 484 45 561 482 79 122,614 110,875 11,739 96,672 81,910 14,762 21 26 + 26 4,496 4,258 238 2,761 2,501 260 42,825 13,333 69 2,389 993 7,037 6,290 747 12,791 11,391 1,400 + 82 + 81 + 87 123 108 15 202 181 21 29,550 25,637 3,913 29,479 25,350 4,129 1 5 619 508 510 429 81 PHYSICAL 1954 1964 Elementary Full-time enrollment public nonpublic (in thousands) . Number of schools public nonpublic Number of one-teacher schools 0 0 0 0 0 0 0 0 Secondary Full-time enrollment public nonpublic (in thousands) . Number of schools. public nonpublic 1,276E 1,129 Number of high school graduates (in thousands) public nonpublic Total Instructional public nonpublic n.o. 1,232 1,098 134 Staff", Elementary and Secondary (in thousands) Classroom teachers public nonpublic elementary Classroom teachers public nonpublic secondary (in thousands) . 737E 658 (in thousands) n.o. 421E 375 n.o. g 0 0 0 + III 21 E 18 0 0 0 35 31 4 2,296 2,021 275 + 80 + 79 n.c. n.o, 1,933E 1,718E 215E + 57 + 56 + 60 22 20 2 32E 28E 4E 1,078 940 138 + 46 + 43 14E 13 18 16 2 755 685 70 + 79 + 83 n.o. n.o. 10 9 1 n.c. n.o. 7E 6 Higher Education Enrollment in degree credit programs (in thousands) . public nonpublic 2,515 1,357 1,158 4,950 3,179 1,771 + 97 +134 + 53 30 19 11 66 46 20 Number of institutions public nonpublic 1,863 662 1,201 2,168 784 1,384 + + + 16 18 15 37 9 28 38 8 30 356,608 290,825 56,788 8,995 610,982 495,898 100,599 14,485 + + + + 71 71 77 61 4,613 3,944 595 74 8,909 7,820 1,027 62 $272 $265 $ 80 $ 6 $486 $484 $ 85 $ 19 + 79 + 83 6 + +217 $153 $153 $ 11 $ 2 $309 $324 $ 35 $ 12 $6,164 $5,963 + 61 + 65 $2,526 $2,465 $4,620 $4,400 Earned degrees conferred bachelor's or first professional master's or second professional doctor's FINANCIAL Elementary and Secondary Public Schools Revenues per pupil C .... Current expenditures per pupil Capital outlays per pupil. Interest on school debt per pupil Average annual salaries instructional staff (including classroom teachers . classroom teachers) $3,825 $3,615E Source: u. S. Deportment of Health, E - estimated Education, and Welfare n.o. - net available education ( 1'1 "/0 1964 % Change 1954 1964 % Change 1,371 1,145 226 1,966 1,615 351 + 43 + 41 + 55 1,623 1,268 355 2,110 1,558 552 + 30 + 23 + 55 361 351 10 320 306 14 3,7640 3,0580 7060 + + + 6 5 11 6,248 5,209 1,039 5,1700 3,8810 1,2890 - 17 - 26 9 3,563 2,926 637 + 24 3,416 3,352 64 2,1170 2,0530 640 - 58 200 60 - 97 1,431 1180 - 92 1,759 6320 - 64 + 87 + 87 + 89 506 431 75 804 655 149 + 59 + 52 + 99 104 101 3 136 130 6 + 31 + 29 +100 11 16 13 403 382 21 3870 3650 220 - 6 9 + 76 - 39 r- - 41 + + 64 + 68 + 40 - - 18 16 27 + 67 + 72 - 374 329 45 1,297 1,139 158 67E 60 n.c. n.c. + 45 + 40 +100 61 53 8 + 29 + 23 n.c. 35E 31 n.c. 23E 20 701 616 85 1,2520 1,0920 1600 - + 3 4 1 1,538 1,252 286 123 108 15 + 84 + 80 100E 81 n.c. n.c. 101E 89E 12E + 66 + 68 + 50 74 62 12 59 51 8 + 69 + 65 40E 33 + 61 + 70 n.o. n.c, 1,3700 1,0470 3230 - + 155 125 30 + 55 + 54 113E 92E 21 E + 53 + 48 + 75 54 42 12 1954 % Change 1964 18E 18 - 11 - 13 + 40 - 38 - 39 - + 4 4 5 24 23 1 + 33 + 28 16 16 18E 18E + + + 35 + 27 8 8 n.c. 9E 9 n.o, + 69 +72 6E 6 n.c. 49 43 6 n.c. n.c. n.c. 29E 25 n.c. n.c. f f n.c. 13 13 - - 11 f 11 n.o, 10 10, + 67 + 67 - n.c. n.c. 37 34 3 +120 +142 + 82 126 67 59 242 146 96 + 92 +118 + 63 148 26 122 252 66 186 + 70 +154 + 52 20 15 5 39 30 9 + 95 +100 + 80 + 3 + 21 + 22 + 21 115 16 99 129 16 113 12 - + 14 21 10 11 20 10 10 - 7 75 11 64 + + 62 9 53 - + 93 + 98 + 73 - 16 16,917 14,571 2,012 334 29,982 25,359 4,031 592 + 77 + 74 +100 + 77 22,995 19,529 2,982 484 38,671 32,929 4,986 756 + + + + 68 69 67 56 3,195 2,620 565 10 5,296 4,563 716 17 + + + + + 43 + 50 I West Virginia 1954 Change + I Pennsylvania Ohio ~" - 11 f n.c. 5 - 9 ~ 66 74 27 70 " '" ----' +102 +112 +218 +500 + 83 + 79 $263 $254 $ 93 $ 8 $530 $465 $ 83 $ 20 +102 + 83 - 11 +150 $4,012 $3,886 $6,100 $5,850 + 52 + 51 $273 $299 $ 65d $ 4 $4,074 $4,012 $513 $479 $ 68d $ 28 $6,060 $5,908 0) Latest doto available are for 1962. b) Includes librarians, principals, guidance counselors, and other supervisory personnel. c) Does not include funds from short-term loans, bonds, and other long-term loans. d) Includes outlays by nonschool agencies. + 88 + 60 5 + +600 $185 $186 $ 49 + 49 + 47 $3,058 $2,969 e e) Less thon $1.00. f) Less thon 1,000. g) less than plus or minus 0.5%' $316 $327 $ 34 $ 4 + 71 + 76 - 31 $4,800 $4,725 + 57 + 59 - supervisors whose considerably salaries tend to be higher than those of class- widely than current expenditures. outlays for the United Capital States as a whole of local school districts cies, and a general rise in the level of room teachers. The Fourth District states grew from $80 to $85 per pupil between interest in 1964 included 1954 and 1964. states also experienced states, Ohio two of the more typical and Pennsylvania, with Comparable expendi- rates. The four tures per pupil in Ohio and Pennsylvania interest teachers' salaries averaging about $6,100, also showed view of the long-term as compared however, also included with $4,000 in 1954; they two of the lower states, West Virginia and Kentucky, $4,800 and $4,620, respectively. reason for the comparatively crease in expenditures secondary enrollment, paying large in- per pupil which is that usually in- volves higher costs of operation dent, has accounted proportion at Another per stu- for an increasing of total enrollment. change. In Kentucky, but remained well substantially, below average. In West Virginia, lays remained below capital the national age and showed a declining outaver- trend over the ten-year period. (Analysis of the data during the intervening that the terminal years indicates dates of 1954 and 1964 are representative of the period to fixed The third as funded These outlays are financed tion, interest major category is interest and unfunded of school payments school debt. ing proportion of school expenditures on debt. Be- Higher Education. variety of institutions The number and in the United States have increased markedly during the past decade. Institutions of instruction. cover a wide range For example, a junior col- lege offers the first two years of training full bond issues or other types of borrowing per pupi I more than tripled for the United grams in liberal and tend to fluctuate States, reflecting leading 14 in of higher education usually increasing indebtedness to ensuing years. tween 1954 and 1964, interest payments more necessi- rise further and to account for an increas- level, while somewhat in are expected at the college usually from District Moreover, financing payments of higher education expenditures assets such as land, plant, and equipment. on school Fourth large increases in tated by a high level of school construc- the national a whole.) In contrast to current expenses, capital outlays are made for additions little they increased and state agen- offers a university undergraduate arts, graduate to the doctorate, procourses and courses Source preparing for entrance into various pro- of data: u.s. in response to rising needs. Department of Commerce year regionally accredited nonprofession- fessions. Many other types of educational Public colleges and universities in West al colleges and universities in the states and technical institutions have developed Virginia now account for one-half of the of the Fourth District that offer a general institutions recently in response to special needs. The enrollment universities rapidly in public colleges and has expanded much more in recent years than in private colleges. Thus, in 1964, enrollment public institutions of higher in education and over three-fourths tal enrollment of to- in that State. In Pennsyl- vania, corresponding figures are about 12 percent of all institutions of higher education and 26 percent of enrollment. course of instruction leading to a bacca- laureate degree. These institutions widely vary in size and tend to be concen- trated in large urban areas. As would be expected from the large These two states have the largest and rise in enrollment, in the United States was about two-thirds smallest graduates has also increased substantially of total enrollment. public Only ten years ear- that in the public with in in the United States and in each of the the Fourth District states. In Ohio, public Fourth District states (see center table). was almost equal to colleges and universities account for al- Kentucky had the largest relative increase most 15 percent of all educational in the number of students earning the institutions. higher education enrollment students in degree credit reported associated in private edu- lier, in 1954, enrollment cational institutions proportions (Data on include all programs, as by the Department of Health, and private higher education the number of college insti- tutions beyond high school and for over bachelor's one-half of total enrollment. during the 1954-64 period, while lic educational institutions While pubin Kentucky Education, and Welfare.) Although much account for only 21 percent of all insti- of the growth in enrollment tutions of higher education, they include has occurred at existing colleges and universities and their branches, a number of new two- and four-year colleges have been established more than two-thirds of total enrollment. On the inside back cover of this report is a map showing the location of four- experienced or first professional degree Ohio the largest percentage rise in graduate degrees. Basic Economic Factors. achievement is important Economic in determining the ability of a state to maintain and/or expand education programs. The level of 15 INDEBTEDNESS OUTSTANDING for PUBLIC elEMENTARY and $ECONDARY SCHOOLS 1954 Sources '56 U.S. Deportment of Health, Education, U.S. Department of Commerce of doto: '62 '60 '58 '64 and Welfare and personal income ability, is one measure of this On a per capita incomes in Ohio and basis, personal Pennsylvania in of the states to support education. can be measured in two ways - tion the United spending on education while per capita income States increased However, in the United by 44 percent between 1954-64, per capita income in Ohio in- by will- ingness to incur debt for school construc- 1964 were slightly higher than those for States as a whole. Effort and by the relationship As shown between and income. in an accompanying the amount of debt outstanding chart, for pub- lic elementary and secondary schools was in Pennsylvania and in West per pupil effort, capita income fourths Virginia, per in 1964 was about three- that for the nation as a whole. amount in Ohio was almost the same as that for the United 1962, while per pupil States in debt in Pennsyl- vania exceeded the national average by Nevertheless, per capita income in those more than $30. In Kentucky and West states increased faster than in the United Virginia debt was considerably lower, or States as a whole the ten-year $258 and $140, respectively. increased ing school period; during per capita income 62 percent in West Virginia by and by 50 In addition to income, nomic factor is the effort 16 another eco- or willingness debt, even after adjustment for the rise in enrollment, doubled percent in Kentucky, Outstand- in the United more than States between 1954 and 1962. Kentucky, with an in- crease of 142 percent, was the only State while In an accompanying income, and West three-fifths, rose by Virginia in Ohio by it in- creased by about two-fifths. the United States as a whole. School debt with that for the United States, rapidly average. School debt outstanding about school more three-fourths of increase in Pennsylvania In Kentucky in which increased than the national approximately identical District debt per pupil creased by only 35 percent. The percent was almost $500 per pupil in 1962 for in the Fourth on education is a second measure of which is shown for the states of the and for the nation Spending and secondary expenditures, for public capital however, outlays, Spending includes as a elementary schools includes ments for interest. education, spending of personal Fourth District whole. table, as a percent current and payon higher only cur- rent expenditures because funds for cap- ital expenditures are more likely obtained building propriate from to be gifts, grants, and special fund drives. It would not be ap- to relate capital outlays of col- leges and universities to the incomes of the states. Concluding Comments. of education As shown in the table, each of the four states of the Fourth District spent This survey in the four states of the Fourth Federal Reserve District indicates a that progress has been made in meeting smaller percent of its income on educa- the needs of increasing numbers of stu- tion than did the United States as a whole, dents. The task, however, is by no means despite the fact that per pupil expendi- finished as demands for education in the tures in Ohio and Pennsylvania are close years ahead will continue to the national average (see center table). though the Federal Government The smaller percent of income spent on come increasingly interested in improv- to grow. Alhas be- education in both states reflects the fact ing education and educational opportu- that per capita income is well above the nities, the funds appropriated so far are national median, and that spending for small compared with total expenditures education on education. At the National Conference absorbs progressively smaller SPENDING on EDUCATION as a PERCENT of PERSONAL INCOME PUBLIC HIGHER ElEMENTARY EDUCATION anti SECONDARY (PUBLIC anti EDUCATlON(l) NONPUBLlC) (2) increments of income as incomes rise. Of of State Governors in July 1965, the gov- the four states, Ohio and West Virginia ernors pledged their support for an inter- U.S. Ky. were closest to the United States in the state compact Ohio percent of income spent on public ele- and quality of education. Thus, the evi- Po. mentary and secondary schools; in order dence mounts that government W. V o. of spending on higher education sylvania was first, followed West Virginia, and Ohio. to improve the quantity at all lev- Penn- els is aware that, if anticipated needs are by Kentucky, to be met, not only a larger effort but also a more cooperative one is required. (1963·1964) (1961·1962) 4.60% 3.77 4.48 3.76 4.37 1.70% 1.42 1.26 1.50 U7 (l) Spending includes current expenditures, capitol and interest. (2) Spending in dudes only current expenditures. Sources of doto: U.S. Department of and U.S. Deportment Health. Education, TOTAl 6.30% 5.19 5.74 5.26 5.74 I: I' II II outlays. and Welfare of Commerce 17 co m pa rati ve state me nt of condition $1,027,788,063 147,919,600 1,175,707,663 $1,146,855,209 137,794,660 1,284,649,869 70,087,483 12,346,414 47,080,029 10,554,686 3,790,000 22,730,000 772,221,000 2,106,682,000 555,763,000 3,434,666,000 505,161,000 2,105,047,000 440,816,000 3,051,024,000 3,438,456,000 3,073,754,000 Cash Items in Process of Collection. Bank Premises Other Assets Total Assets 586,241,928 5,271,050 83,397,615 $5,371,508,153 616,036,242 5,930,897 47,990,376 $5,085,996,099 LIABILITIES Federal Reserve Notes $3,232,281,011 $3,004,814,099 Gold Certificate Account . Redemption Fund for Federal Reserve Notes Total Gold Certificate Reserves. Federal Reserve Notes of Other Banks. Other Cash . Discounts and Advances . U. S. Government Securities: Bills Notes Bonds Total U. S. Government Securities Total Loans and Securities Deposits: Member Bank-Reserve U. S. Treasurer-General Foreign Other Deposits Total Deposits 18 Dec. 31, 1964 Dec. 31,1965 ASSETS Accounts. Account 1,445,338,569 67,818,951 13,500,000 11,019,221 1,537,676,741 1,350,868,097 69,558,192 20,020,000 8,396,712 1,448,843,001 Deferred Availability Cash Items Other Liabilities Total Liabilities 486,774,242 15,301,059 $5,272,033,053 481,765,168 56,392,031 $4,991,814,299 CAPITALACCOUNTS Capital Paid In . Surplus Total Liabilities and Capital Accounts 49,737,550 49,737,550 $5,371,508,153 47,090,900 47,090,900 $5,085,996,099 Contingent Liability on Acceptances for Foreign Correspondents $ Purchased 12,924,000 $ 11,174,800 comparison of earnings and expenses 1965 Total Current Earnings Net Expenses Current Net Earnings Additions to Current Net Earnings: Profit on Sales of U. S. Government Securities (Net) $ 127,241,656 $ 110,642,402 16,633,918 110,607,738 16,449,582 94,192,820 -0-- Profit on Foreign Exchange Transactions (Net) All Other. Total Additions Deductions from Current Net Earnings: Loss on Sales of U. S. Government Securities (Net) All Other. Total Deductions • Net Additions • Net Earnings Before Payments to U. S. Treasury. Dividends Payments to U. S. Treasury (Interest on F. R. Notes) Transferred to Surplus 1964 $ 51,271 13,545 26,569 91,385 862 -03,991 46 3,991 9081 87,394 181,632 ~ 94,280,214 110,789,370 2,762,834 2,899,235 134,215,180 105,243,485 2,646,650 $ -42,697,800 19 directors (as of January 1, 1966) Chairman JOSEPH Director, Former Chairman B. HAll The Kroger Co the Board of Cincinnati, Ohio Deputy Chairman lOGAN Armco Steel WALTER Corporation Chairman & Swasey ALBERT G. CLAY Tobacco RICHARD Company Cleveland, Company Mt. Sterling, Company Chairman Manufacturing of Troy, Chairman D. SCHOOLER Coshocton National EDWIN J. THOMAS The Ohio 20 of the Columbus, Ohio Board Ohio President Coshocton, Chairman Federal Advisory Company of the Executive and Ohio Finance Committee Akron, Ohio Council A. STONER National of Columbus Bank Tire & Rubber Ohio the Board and Chief Executive Officer Company Bank & Trust Company SEWARD lELAND Ohio Kentucky Findlay, EVERETT D. REESE The Goodyear Ohio President Savings DA VI D A. MEEKER The City National Board President Bank and The Hobart the the Board of R. HOLLINGTON The Ohio Member, of Middletown, K. BAilEY The Warner Clay Chairman T. JOHNSTON Bank of Columbus President Columbus, Ohio officers 1, 1966) (as of January W. BRADDOCK President HICKMAN First Vice President EDWARD A. FINK GEORGE E. BOOTH, Vice President and Cashier JR Vice President and General Counsel PAUL BREIDENBACH Vice President and Secretary ROGER R. CLOUSE PHILLIP B. DIDHAM Vice President ELMER F. FRICEK ...........•............................. Vice President CLYDE HARRELL Vice President JOHN ................................•........ Vice President J. HOY HARRY W. HUNING Vice President FRED S. KELLY Vice President FRED O. Vice President KIEL Vice President and General Economist MAURICE MANN Vice President CLI FFORD G. MILLER General Auditor ELFER B. MILLER ADDISON Assistant Vice President and Economist T. CUTLER R. JOSEPH GINNANE Assistant Vice President WILLIAM Assistant Vice President H. HENDRICKS Assistant Vice President ROBERT G. HOOVER H. MILTON OSCAR Chief Examiner PUGH Assistant Cashier H. BEACH, JR DONALD Assistant Cashier G. BENJAMIN ROBERT D. DUGGAN Assistant Cashier ANNE Assistant Cashier J. ERSTE THOMAS E. ORMISTON, Assistant Cashier JR JAMES H. CAMPBELL LESTER M. SELBY .............•....................... , Assistant General Auditor Assistant Secretary 21 branch directors (as of January 1, 1966) CINCINNATI BRANCH DIRECTORS Chairman WALTER C. LANGSAM, University of Cincinnati, JACOB H. GRAVES President The Second National Bank and Trust Company of Lexington Lexington, Kentucky JOHN W. HUMPHREY The Philip Carey Manufacturing Ohio KROGER PETTENGILL President The First National Cincinnati, JAMES B. PUGH President Company The Security Ohio R. STANLEY LAING President Cash Register Company Dayton, Ohio Bank of Cincinnati Ohio President Cincinnati, The National President Cincinnati, Portsmouth, Central National Ohio BARNEY A. TUCKER President Burley-Belt Fertilizer Lexington, Kentucky Company OFFICERS FRED O. KIEL Vice President JOSEPH W. CROWLEY Assistant Cashier HOWARD WALTER H. MacDONALD Cashier GEORGE W. HURST Assistant Cashier E. TAYLOR Assistant Cashier 22 Bank of Portsmouth and officers PITTSBURGH BRANCH DIRECTORS Chairman G. L. BACH, Maurice Folk Professor of Economics and Social Science Carnegie Institute of Technology, J. S. ARMSTRONG President and Trust Officer The Grove City National Bank Grove City, Pennsylvania F. L. BYROM President Koppers Company, Pittsburgh, Inc. Pennsylvania ROBERT DICKEY III President Dravo Corporation Pittsburgh, Pennsylvania Pittsburgh, Pennsylvania S. L. DRUMM President West Penn Power Company Greensburg, Pennsylvania ROBERT C. HAZLETT President Wheeling Wheeling, Dollar Savings & Trust Co. West Virginia EDWIN H. KEEP President First National Meadville, Bank of Meadville Pennsylvania OFFICERS CLYDE HARRELL Vice President J. ROBERT AUFDERHEIDE Assistant Cashier ROY J. STEINBRlt~K Cashier PAUL H. DORN Assistant Cashier CHARLES E. HOUPT Assistant Cashier 23 .In four nonprofessional accredited four-year fo u rth district KENTUCKY College Asbury College Bellarmine College Berea College Brescia College Campbellsville College Catherine Spalding College Centre College of Kentucky Cumberland College Eastern Kentucky State College Georgetown College Kentucky State College Kentucky Wesleyan College Morehead State College Murray State College Nazareth College of Kentucky Pikeville College Transylvania College Union College University of Kentucky University of Louisville Ursuline College Vi lIa Madonna College Western Kentucky State College states Map ~ Community Wilmore Louisville Berea Owensboro Campbellsville Louisville Danville Williamsburg Richmond Georgetown Frankfort Nazareth Pikeville Lexington Barbourville Lexington Louisville Louisville Covington Bowling Green F-3* F-2 G-3* F-1 G-2 F-2 G-3 H-3* G-3* F-3* F-3 G-1 F-3* H-1 F-2 G-4* F-3* H-3* F-3* F-2 F-2 E-3* G-2 Yellow Springs Ashland Cincinnati Berea Bluffton Wickliffe Bowling Green Columbus Cleveland Wilberforce Cleveland Mt. st. Joseph Columbus Steubenville Wooster Defiance Granville Findlay Cincinnati Tiffin Hiram Cleveland Kent Gambier Painesville Canton Marietta Toledo Oxford Alliance New Concord Cleveland Oberlin Ada Columbus Athens Delaware Westerville Cincinnati Cleveland Akron Cincinnati Dayton Toledo Cleveland Oxford Cleveland Wilberforce Wilmington Springfield Cincinnati Youngstown 0-3* C-4* E-3* B-4* C-3* B-4* B-3* 0-4* B-4* 0-3* B-4* E-3* 0-4* C-S* C-4* B-3* 0-4* B-3* E-3* B-3* 8-4* B-4* B-4* C-4* A-4* C-4* 0-4* B-3* 0-3* B-4* 0-4* B-4* B-4* C-3* 0-3* 0-4* C-3* 0-4* E-3* B-4* B-4* E-3* 0-3* B-3* B-4* 0-3* B-4* 0-3* 0-3* 0-3* E-3* B-S* Owensboro Morehead Murray OHIO Antioch College Ashland College Athenaeum of Ohio (The) Baldwin-Wallace College Bluffton College Borromeo Seminary of Ohio Bowling Green State University Capital University Case Institute of Technology Central State University Cleveland State University (Fenn) College of Mt. St. Joseph-on-the-Ohio College of St. Mary of the Springs College of Steubenville (The) College of Wooster Defiance College (The) Denison University Findlay College Hebrew Union College Heidelberg College Hiram College John Carroll University Kent State University Kenyon College Lake Erie College Malone College Marietta College Mary Manse College Miami University Mount Union College Muskingum College Notre Dame College Oberlin College Ohio Northern University Ohio State University (The) Ohio University Ohio Wesleyan University Otterbein College Our Lady of Cincinnati College St. John College of Cleveland University of Akron (The) University of Cincinnati University of Dayton University of Toledo Ursuline College Western College for Women Western Reserve University Wilberforce University Wilmington College Wittenberg University Xavier University Youngstown University (The) PENNSYLVAN IA Academy of the New Church Albright College Allegheny College Alliance College Beaver College Bloomsburg State College Bryn Mawr College Bucknell University California State College *Located in the Fourth Federal Bryn Athyn Reading Meadville Cambridge Glenside Bloomsburg Bryn Mawr lewisburg California Reserve District. Springs schools C-7 C-7 A-S* A-S* C-7 B-6 C-7 B-6 C-S* Map Community Code Pittsburgh Allentown Pittsburgh Philadelphia Cheyney Clarion Dallas Carlisle Philadelphia Pittsburgh East Stroudsburg St. Davids Edinboro EIizabethtown Lancaster Erie Beaver Falls Gettysburg Grove City Gwynedd Valley Haverford Philadelphia Immaculata Indiana Huntingdon Wi I kes-Barre Kutztown Easton Phi ladelphia Annville Bethlehem lincoln University Lock Haven Williamsport Mansfield Northampton Scranton Erie Grantham Millersville Philadelphia Bethlehem Pittsburgh Allentown Chester University Park Philadelphia Rosemont Loretto Philadelphia Latrobe Greensburg Shippensburg Slippery Rock Selinsgrove Swarthmore Philadelphia Greenville Philadelphia Pittsburgh Scranton Collegeville Erie Villanova Washington Waynesburg West Chester New Wilmington Wilkes-Barre Chambersburg C-S* 8-7 C-S* C-7 C-7 B-S* B-7 C-6 C-7 C-S* B-7 C-7 A-S* C-6 C-7 A-S* C-S* 0-6 B-S* C-7 C-7 C-7 C-7 C-S* C-6 B-7 C-7 B-7 C-7 C-6 B-7 0-7 8-6 8-6 A-6 B-7 A-7 A-S* C-6 C-7 C-7 B-7 C-S* C-7 C-7 B-6 C-7 C-7 C-S C-7 C-S* C-S* C-6 8-5* B-6 C-7 C-7 B-S* C-7 C-S* A-7 C-7 A-S* C-7 C-S* 0-5* C-7 B-S* B-7 C-6 Philippi Bethany Bluefield Athens Elkins Fairmont Glenville Huntington Charleston Salem Shepherdstown West Liberty Montgomery Institute Morgantown Buckhannon Wheeling E-S C-S* G-4 G-4 E-S 0-5 E-4 F-4 F-4 0-5 0-6 C-S* F-4 F-4 0-5 E-S C-S* College Carnegie Institute of Technology Cedar Crest College Chatham College Chestnut Hill College Cheyney State College Clarion State College College Misericordia Dickinson College Drexel Institute of Technology Duquesne University East Stroudsburg State College Eastern Baptist College Edinboro State College Elizabethtown College Franklin and Marshall College Gannon College Geneva College Gettysburg College Grove City College Gwynedd-Mercy College Haverford College Holy Family College Immaculata College Indiana State College Juniata College King's College Kutztown State College Lafayette College La Salle College Lebanon Valley College Lehigh University lincoln University Lock Haven State College Lycoming College Mansfield State College Mary Immaculate Seminary Marywood College Mercyhurst College Messiah College Millersville State College Moore College of Art Moravian College Mount Mercy College Muhlenburg College Pennsylvania Military College Pennsylvania State University (The) Philadelphia College of Art Rosemont College St. Francis College St. Joseph's College St. Vincent College Seton Hill College Shippensburg State College Slippery Rock State College Susquehanna University Swarthmore College Temple University Thiel College University of Pennsylvania University of Pittsburgh University of Scranton Ursinus College Villa Maria College Villanova University Washington and Jefferson College Waynesburg College West Chester State College Westminster College Wilkes College Wilson College WEST VIRGINIA Alderson-Broaddus College Bethany College Bluefield State College Concord College Davis and Elkins College Fairmont State College Glenville State College Marshall University Morris Harvey College Salem College Shepherd College West Liberty State College West Virginia Institute of Technology West Virginia State College West Virginia University West Virginia Wesleyan College Wheeling College ./ institutions in four four-year of higher fourth district accredited education states non professional schools OHIO ENROLLMENT • • Pu blic • Under 1,000 • 1,000 To 5,000 • Over 5,000 e e 10 Private fourth federal reserve district ® Under 1,000 ~ 1,000 To 5,000 .® \0 I!'). KENTUCKY o • • 2 3 .8 0 ~ • • @ A • F G WEST VIRGINIA H 5 4 Source of data: U.S. Department 6 of Health, Education, and Welfare 7 (information as of academic year 1964-65) Fourth Federal Reserve District