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FEDERAL RESERVE BANK OF CLEVELAND .Twenty-eighth Annual Statement Cleveland, Ohio, January 7, 1943 To the Nonmember Banks of the Fourth Federal Reserve District: For the information of your directors and officers there is presented herein a comparative statement of condition of this bank for December 31, 1942, and December 31, 1941, and of earnings and expenses for the past two years. A statement of the distribution of net earnings is also included. That interest in membership in the Federal Reserve System continues is evidenced by the admission of seventeen State banks during the past calendar year. Of these, fourteen are located in Ohio, two in Pennsylvania, and one in West Virginia. May we take this occasion to express to the banks of the Fourth Federal Reserve District our appreciation of the cooperative spirit which they have shown at all times during the past very difficult year, and particularly of the magnificent effort made by the banks in the recent Victory Fund drive. The results in this district were outstanding and we share with them the pride which they must feel in this accomplishment. Very truly yours, President COMPARATIVE STATEMENT OF CONDITION ASSETS Dec. 31, 1942 Dec. 31, 1941 Cash reserves held by this bank against deposits and note circulation: Gold certificates (lodged with the Treasurer of the United States) deposited for account of the Federal Reserve Agent as collateral against Federal Reserve notes issued to this bank $1,180,000,000.00 " s 815,000,000.00 Redemption fund in the hands of the Treasurer of the United States for use in redeeming such Federal Reserve notes of this 1,140,222.67 bank as are presented to the Treasury for redemption .... , .... 919,411.21 Gold certificates (lodged with the Treasurer of the United States) in the Interdistrict Settlement Fund for the purpose of settling transactions between Federal Reserve banks. . . . .. . . .. . . . . .. . Other cash :.............. Total cash reserves..................................... 534,832,513.70 812,213,061.38 43,579,838.05 23,520,932.18 1,759,552,574.42 1,651,653,404.77 Bills and Securities: Bills discounted: Secured by United States Government securities, direct and 100,000.00 . 190,000.00 270,971.45 . 819,846.43 233,254.12 . 509,453,500.00 223,162,000.00 . 510,734,317.88 223,582,178.69 Federal Reserve notes of other banks . 2,869,000.00 2,086,500.00 Checks and other cash items in process of collection . 149,176,720.56 Bank premises, less reserves . 200,909,306.01 4,326,270.42 All other miscellaneous assets . 8,482,708.99 4,617,844.87 Total miscellaneous assets . 216,587,285.42 160,319,811.76 Total Assets . $2,486,874,177.72 $2,035,555,395.22 guaranteed . Otherwise secured or unsecured Industrial advances-working capital loans United States Government securities Total bills and securities 86,924.57 Miscellaneous Assets: 4,438,746.33 COMPARATIVE STATEMENT OF CONDITION Dec. 31, 1942 Dec. 31, 1941 $1,133,506,500.00 $ 778,071,820.00 918,239,742.65 919,517,208.89 132,278,945.07 72,247,422.50 141,992,071.45 87,141,064.96 1,192,510,759.17 1,078,905,696.35 . 125,478,131.99 143,847,769.41 . 162,755.93 173,349.05 . 125,640,887.92 144,021,118.46 14,878,350.00 14,640,150.00 14,766,685.26 14,345,615.04 ury to further the making of working capital loans . . . . . . 1,007,126.09 1,007,126.09 Reserves for contingencies. . . . . . . . . . . . . .. . . . . . . . .. . . . . . . . . . . 4,563,869.28 4,563,869.28 $2,486,874,177.72 $2,035,555,395.22 LIABILITIES Federal Reserve notes in circulation: Federal Reserve notes in actual circulation, payable on demand. These notes are secured in full by gold certificates, discounted paper, or United States Government securities , '. .. Deposits: Reserve deposits maintained by member banks as legal reserves against the deposits of their customers , . United States Government deposits carried at this bank for current requirements of the Treasury..... Other deposits " ,.. Total deposits......................................... Miscellaneous Lia bili ties: Deferred items, composed mostly of uncollected checks on banks in all parts of the country. Such items are credited as deposits after the average time needed to collect them elapses All other miscellaneous liabilities Total miscellaneous liabilities Capital and Surplus: Capital paid in, which is 50% of amount subscribed and which represents 3% of the capital and surplus of member banks . Surplus: (Section 7)-That portion of accumulated net earnings which this bank is legally permitted to retain (Section 13b)-Net . amount paid by the Secretary of the Treas- Total Liabillties Commitments to make industrial advances. . . . . . . . . . . . . . . . . . . . .. $ 387,086.87 $ 1,042,797.74 COMPARISON OF EARNINGS AND EXPENSES For the years 1942 and 1941 1942 Current 1941 Earnings: United States Government securities . All other . 3,073.92 19,800.12 6,279.32 4,872,023.65 73,854.49 . 4,975,031.50 4,123,894.20 Expenses (including normal depreciation on bank . 5,036,390.38 3,354,291.09 Less reimbursements for certain Fiscal Agency and other expenses 1,976,744.91 462,972.10 3,059,645.47 2,891,318.99 $ Discounted bills..... . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Industrial advances . Commitments to make industrial advances . Total current earnings Total Operating premises) Net Operating Expenses ........•........................ $ 2,364.21 14,708.63 10,350.39 4,031,178.51 65,292.46 Assessments for expenses of Board of Governors . 160,273.46 168,820.99 Cost of Federal Reserve currency . 387,044.64 300,294.59 Total current expenses . 3,606,963.57 3,360,434.57 . 1,368,067.93 763,459.63 Profits on sales of United States Government securities . 333,825.68 132,273.24 All other . 3,545.64 23,650.12 . 337,371.32 . 381,490.00 Current Net Earnings Additions to Current Net Earnings: Total additions Deductions from Current Net Earnings: Retirement System (Interest base adjustment) All other . Total deductions . . Net additions . Net Earnings . $ DISTRIBUTION Total. 7,481.55 11,158.13 388,971.55 11,158.13 144,765.23 1,316,467.70 $ 908,224.86 $ 15,457.87 OF NET EARNINGS $ Paid United States Treasurer (Section l3b) . . . . . . . . . . . . . . . . . . . .. Dividends paid -0- 51,600.23 Net deductions Surplus (Section 7) 155,92q.36 6,847.76 888,549.72 . • $ 1,316,467.70 ======= 869,941.54 22,825.45 421,070.22 . $ 908,224.86 FEDERAL RESERVE BANK OF CLEVELAND DIRECTORS AND OFFICERS-1943 DIRECTORS G. C. BRAINARD, Chairman R. E. KLAGES, Deputy Chairman Term Expires CLASS A H. B. McDOWELL, President, The McDowell National Bank of Sharon, Sharon, Pa F. F. BROOKS, President, First National Bank at Pittsburgh, Pittsburgh, Pa B. R. CONNER, President, The First National Bank of Ada, Ada, Ohio 1943 1944 1945 CLASS B R. P. WRIGHT, Secretary-Treasurer, The Reed Manufacturing Co., Erie, Pa G. D. CRABBS, Chairman of the Board, The Philip Carey Manufacturing Co., Cincinnati, Ohio T. E. MILLSOP, President, The Weirton Steel Co., Weirton, W. Va 1943 1944 1945 CLASS C G. C. BRAINARD, President, The General Fireproofing Co., Youngstown, Ohio A. Z. BAKER, President and General Manager, The Cleveland Union Stock Yards Co., Cleveland, Ohio 'R. E. KLAGES, President, The Columbus Auto Parts Co., Columbus, Ohio 1943 1944 1945 OFFICERS M. J. FLEMING, F. J. ZURLINDEN W. H. FLETCHER R. B. HAYS W. F. TAYLOR C. W. ARNOLD K. H. MacKENZIE A. H. LANING President First Vice President Vice President Vice President & Secretary Vice President Vice President c .•..... Vice President Cashier MEMBER, B. G. HUNTINGTON, E. A. CARTER H. E. J. SMITH C. J. BOLTHOUSE .. " C. HARRELL M. MORRISON W. L. FINDEISEN Assistant Vice President Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier F. V. GRAYSON FEDERAL ADVISORY President, The Huntington Auditor COUNCIL National Bank of Columbus, Columbus, Ohio COUNSEL SQUIRE, INDUSTRIAL W. W. WITHINGTON, Vice President The American Fork & Hoe Company, Cleveland, Ohio D. C. SWANDER, President The Columbian Vise and Mfg. Company, Cleveland, Ohio SANDERS & DEMPSEY ADVISORY COMMITTEE H. R. NEFF, President The George S. Rider Company, Cleveland, Ohio H. P. LADDS, President The National Screw and Manufacturing Cleveland, Ohio C. F. HOOD, President The American Steel and Wire Company of New Jersey, Cleveland, Ohio Company, FEDERAL RESERVE BANK OF CLEVELAND DIRECTORS AND OFFICERS-1943 (Continued) CINCINNATI BRANCH OF FEDERAL RESERVE BANK OF CLEVELAND DIRECTORS Term Expires FRANCIS H. BIRD (Chairman), Professor of Commerce, University of Cincinnati, Cincinnati, Ohio 1943 BUCKNER WOODFORD, Vice President and Cashier, Bourbon-Agricultural Bank & Trust Co., Paris, Ky .. 1943 B. J. LAZAR, Managing Director 1943 F. A. BROWN, Agriculturist, Chillicothe, Ohio ...............••........•.............................. 1944 J. G. GUTTING, President, The Second National Bank of Cincinnati, Cincinnati, Ohio 1944 OFFICERS B. J. LAZAR H. N. OTT R. G. JOHNSON P. J. GEERS •...................... PITTSBURGH Managing Director Cashier Assistant Cashier Assistant Cashier BRANCH OF FEDERAL RESERVE BANK OF CLEVELAND DIRECTORS ROBERT E. DOHERTY (Chairman), President, Carnegie Institute of Technology, Pittsburgh, Pa CLARANCE STANLEY, President, The Union Trust Company of Pittsburgh, Pittsburgh, Pa J. W.KOSSIN, Managing Director .................................................................• E. B. HARSHAW, Vice President and Cashier, The Grove City National Bank, Grove City, Pa , , 1943 1943 1943 1944 OFFICERS J. W. KOSSIN Managing Director Cashier Assistant Cashier A. G. FOSTER J. A. SCHMIDT R. J. STEINBRINK MEMBER BANKS IN OPERATION Assistant Cashier IN FOURTH DISTRICT, DECEMBER 31, 1942 State Kentucky Ohio-Cincinnati territory Ohio-Cleveland territory Pennsylvania. '.' West Virginia ' National 51 Total 7 . . 23 . 127 . 29 4 . 91 150 195 8 58 114 277 224 12 190 495 685 NEW MEMBER BANKS IN 1942 The Farmers and Merchants' State and Savings Bank, Montpelier, Ohio The Union Savings & Trust Co., Warren, Ohio The Farmers State Bank, of Englewood, Ohio, Englewood, Ohio The Bank of Mount Eaton Company, Mount Eaton, Ohio The Peoples Banking Company of Lewisburg, Lewisburg, Ohio The Twin Valley Bank, West Alexandria, Ohio The First State Bank of West Manchester, West Manchester, Ohio The Commercial and Savings Bank of Mi11ersburg Ohio, Mi11ersburg, Ohio The Pickerington Bank, Pickerington, Ohio Citizens' Bank of Follansbee, Follansbee, W. Va. The Citizen's Bank, Cardington, Ohio First Jeannette Bank and Trust Company, Jeannette, Pennsylvania The Colonial Savings Bank, Fremont, Ohio The Farmers & Citizens Bank, Tiro, Ohio The Whitehouse State Savings Bank, Whitehouse, Ohio William Penn Bank of Commerce, Pittsburgh, Pennsylvania The Citizens Banking Company, Perrysburg, Ohio Seventeen banks, large and small, scattered through three States, were admitted to membership in the Federal Reserve System in the Fourth Federal Reserve District during the past calendar year. This movement evidences a further appreciation that State banks, irrespective of size or location, may benefit through the advantages which membership in the System affords. We shall be glad to discuss with representatives of qualified banks, at any time, the desirability of membership and the advantages which it wi11afford to you, and through you to your customers.
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