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JAN 1 1 1963







W e are pleased to present the Annual Report of the Federal Re­
serve Bank o f Richmond fo r the year 1961.

This year’s report features

the role o f the head office and branch directors in the operation o f the
Federal Reserve Banks and their contribution to the functioning o f the
nation’s econom y.

Since Class A and Class B directors are selected by

mem ber banks, we believe the story o f their duties and functions will
be o f interest to you.

In addition, the report contains a summary of

Fifth District operations, a current list o f officers and directors, and
com parative financial statements.
On beh alf o f the directors and staff, we wish to express our ap­
preciation fo r your cooperation and support throughout the year.

Very truly yours,

Chairman of the Board.




Federal Reserve Bank Directors


Structure o f the Federal Reserve System


The Board o f Directors


Nomination and Election o f Directors


Functions o f Directors


Federal Reserve Branch Directors


Summary of Operations


Comparative Statement of Condition


Comparative Statement of Earnings and Expenses


Federal Reserve Bank of Richmond— Directors


Federal Reserve Bank of Richmond— Officers


Baltimore Branch— Officers


Charlotte Branch— Officers


Baltimore Branch— Directors


Charlotte Branch— Directors



“ [They] shall act primarily in the public interest and [their] motives
and conduct shall be so absolutely well-known and above suspicion as to
inspire unquestioning confidence on the part of the community ”
“ [They] are men of stature and ability— men who are dedicated to
the public welfare. Their decisions are made without bias or self-interest
of any group. And I can say from my personal experience that there is no
consideration other than for the country as a whole.”
The w ording o f these two statements is different, yet the ideas
expressed in each are substantially the same. The significance o f this
similarity lies in the fa ct that these statements were separated by some
forty-seven years. The first appears in House Report No. 69 o f the
Sixty-third Congress. The time— 1913. The subject— the soon-to-beestablished Federal Reserve Banks. The second is part of a statement
by the president o f a Federal Reserve Bank to a sub-committee o f the
Banking and Currency Committee o f the House o f Representatives. The
time— 1960. The subject— the directors o f a Federal Reserve Bank.
The first statement em bodies the hopes and aspirations which
Congress had fo r the new central banking system it was establishing—
the second eloquently describes the spirit and character o f the men
who have helped guide and direct an im portant part o f that system—
the Federal Reserve Banks and their branches— during the years which
have follow ed .
The ensuing years have seen the Federal Reserve Banks develop
from the intangible fram ew ork outlined in the pages of the Federal
Reserve A ct into the flesh and blood o f 20,000 em ployees o f the 12
Banks and their 24 branches and the steel and concrete buildings which
house them. They have seen the functions which the A ct so drily calls
upon the Reserve Banks to perform brought to life and becom e an
active and indispensable means through which the econom y o f the
nation operates— through the services perform ed by the Banks in
acting as the G overnm ent’s principal fiscal agents, collecting fo r the
public over fou r billion checks annually, serving as the channels through
which practically all currency and coin moves into or out o f circulation,
and issuing Federal Reserve notes, which account fo r approxim ately
85 per cent o f the nation’s “ pocket m oney.”
The years follow in g have
also seen the Reserve Banks carry out their more basic purposes under
the Federal Reserve A ct— making loans to m em ber banks and super-


vising and examining State mem ber banks— and help to accom plish its
broader objective— that o f regulating the flow o f money and credit in
order to prom ote econom ic stability and growth. These years have
also brought a gradual increase in public know ledge and understanding
o f the purposes and functions o f the Federal Reserve Banks and o f the
The accom plishm ents and continuing developm ent of what began
as a new and untried experiment are a tribute to the directors o f these
institutions. W hat is the role o f these “ men o f stature and ability . . .
dedicated to the public w elfa re” who help give reality and substance
to the ideal expressed by Congress nearly half a century ago— who
contribute to w hatever success the Banks and the System have in main­
taining the “ unquestioning confidence o f the com m unity” ? W hat quali­
fications must they have and how are they elected?
H ow long do
they serve and what are their duties?
The Federal Reserve A ct furnishes the answers to some o f these
questions, and publications of the Reserve Banks and the Board o f G ov­
ernors answer such questions as “ W ho are the current directors o f each
Federal Reserve B a n k ?”
“ W here do they liv e ? ”
“ W hat are their
occu p ation s?”
None of these sources, how ever, answers the broader
questions involving why men o f talent and ability who have made their
marks in their own fields accept the time and energy consuming job s
o f being Federal Reserve Bank directors. Nor do they indicate the
significance o f their service as directors.
To find the answers to these more general questions and to appre­
ciate the significance o f answers to the specific questions, it is necessary
first to have some understanding o f the fram ew ork o f the Federal Re­
serve System and the basic concepts underlying its establishment. The
regional structure on which Congress built the System and the inherent
public nature o f the Federal Reserve Banks dictate the tenor o f every
law and ruling relating to Federal Reserve Bank directors.


Congress, in fram ing the Federal Reserve A ct, was fa ced first with
the problem o f designing a central banking system which w ould meet
the credit and m onetary needs o f a large, diversified, and com plex
econom y. It settled upon a regional system with national coordination
of policy rather than a central institution such as had been established
in older countries.
It was then fa ced with the questions o f form and control o f the
regional system. The simpler o f these was the question o f form and,
in keeping with the business practices o f the day, the regional Federal
Reserve Banks were set up as corporations. A more difficult problem
was that o f constituting control and management o f the system in a
way which w ould generate absolute confidence and at the same time
satisfy the people. Some thought that the new institutions should be
managed by businessmen alone without any Governm ent interference.
Others felt that since the Reserve Banks w ould have the pow er to issue
money, which is a Governmental function, the Government should run
them. M anagem ent o f a central banking institution exclusively by the
Government, how ever, was thought too likely to carry with it control
fo r partisan political purposes by the administration in pow er. On the
other hand, placing control o f the new institutions exclusively in the
hands o f banks and businessmen would be sure to create alarm and
Congress resolved the problem in a manner consistent with the
theory o f separation o f pow ers and the system o f checks and balances
which had becom e characteristic o f the nation. First, it made the new


system responsible to the Congress rather than the President. Second,
it. created an organization in which Government representatives would
iiave final authority over matters o f national policy but in which the
day-to-day operations w ould be largely conducted by the regional Banks
and in which private individuals w ould participate.
The central banking system which has evolved from the exposition
o f these principles in the Federal Reserve A ct is com posed o f the Board
of Governors of the Federal Reserve System, the Federal Reserve Banks,
the member banks, the Federal Open Market Committee, and the Fed­
eral Advisory Council.
The Board of Governors is a Governmental body consisting o f seven
men appointed by the President with the advice and consent o f the
Senate. Board members are appointed fo r fourteen-year terms and
are ineligible fo r reappointm ent after having served a full term (p ro ­
visions designed to insulate them from partisan politics and other
pressures). The B oard’s prime function is form ulating monetary policy
and supervising its execution. More particularly, it has authority to
change reserve requirements within limits set by Congress; it reviews
and determines the discount rate established by the individual Reserve
Banks and is required to establish maximum interest rates which m em­
ber banks may pay on time deposits. It represents the System in rela­
tions with the Federal Governm ent and exercises special supervision
over the foreign contacts and international operations o f the Reserve
Banks. It directs the bank examination w ork of the Federal Reserve
Banks, coordinates System econom ic research and data collection, and
reviews all System publications. In addition, the Board supervises Re­
serve Bank operations, examines each Reserve Bank and its branches
annually, and its approval is necessary fo r the appointment o f the presi­
dent and first vice president o f each Reserve Bank.
The Federal Reserve Banks, each a separate corporate entity, were
established by Congress as the System’s operating arms— the means
through which the day-to-day operations o f the System are conducted.
In order that all parts o f the United States might have convenient access
to the Reserve System, Congress specified that the Reserve Banks should
be located in different sections o f the country, with the result that the
country has been divided into tw elve Federal Reserve districts— each
with a Federal Reserve Bank. There are now also tw enty-four branches
o f these Banks serving particular areas within the districts.
The Reserve Banks hold the cash reserves of their m em ber banks,
provide checking accounts fo r the Treasury, issue Federal Reserve note
currency, collect checks, supervise and examine m em ber banks, handle
the issuance and redem ption of Governm ent securities, and act in other
ways as fiscal agent fo r the Government. The Federal Reserve Banks
are prim arily concerned with serving the public interest. They do not
operate to make a profit although they do operate with regard to effi­
cient management. Their earnings— after provision fo r operating and
other expenses and the paym ent o f dividends on their stock as fixed by
law— are paid to the U. S. Treasury.
The member banks o f the System number more than 6,000 o f the
privately ow ned com m ercial banks in the country. All national banks
are required to be members and qualified State-chartered banks may
becom e members. Most of the larger State-chartered banks are m em ­
bers o f the System. M ember banks must subscribe to the capital stock
o f their Reserve Bank in an amount equal to 6 per cent o f their own
capital and surplus (only half o f this is paid-in— the other h a lf is sub­
je c t to ca ll). They must com ply with reserve requirements and with
regulations governing branch banking, check collection, and other bank­
ing matters. In return they have the privileges o f borrow ing under



certain conditions from the district Reserve Bank; of using System
facilities for collecting checks, settling balances, and transferring funds
to other cities; and of obtaining currency and coin as needed. They
receive a dividend of 6 per cent annually on their Federal Reserve Bank
stock and vote in the election of six of the nine directors of the district
Federal Reserve Bank.
T h e F ed eral O pen M ark et C om m ittee, the System’s most important
policy-making body, is composed of the seven members of the Board
of Governors and live presidents of the Federal Reserve Banks. The
presidents serve as members in rotation except for the President of the
New York Reserve Bank, who is a permanent member of the Committee.
The Committee’s main responsibility is the establishment of System open
m arket policy— the extent to which the System buys and sells Govern­
ment and other securities. Such purchases and sales of securities
directly affect the volume of member bank reserves and, consequently,
the over-all cost and availability of credit.
T he F ed eral A d visory C ouncil is composed of twelve members, one
from each Federal Reserve District, who are elected annually by the
board of directors of the Federal Reserve Banks of their districts. The
Council meets in Washington at least four times a year and advises the
Board of Governors on important current developments in business and
The Federal Reserve System thus includes within its framework
both the purely Governmental— the Board of Governors, and the purely
private— the member banks. Linking these two components are the
Federal Reserve Banks. While Congress clearly established the Re­
serve Banks as public institutions, it provided at the same time that they
should be the means for attracting and binding to the System the sup­
port of its private element, the nation’s commercial banks.
It accomplished this by tying the member banks to the Reserve
Banks through the requirement that each member bank subscribe to
a fixed amount of capital stock of its Federal Reserve Bank and by
providing that the member banks in each district might elect six of the
nine directors of its Reserve Bank, the other three being appointed by
the Board of Governors.
As a check against the possibility of any undue influence over the
Reserve Banks which might arise from this arrangement, Congress
provided that, while the directors of the Banks would supervise and
control them and perform the usual duties of directors of banking insti­
tutions, the Board of Governors would have general supervision over
them. In addition, the six member-bank-elected directors of each Re­
serve Bank were divided into two groups and a rather detailed method
provided for their election.
Finally, limitations were placed on the rights which would accrue
to member banks through their ownership of Federal Reserve Bank
stock. Ownership of such stock carries with it no claim upon the earn­
ings of the Reserve Banks beyond the cumulative dividend provided by
law. The stock cannot be transferred or hypothecated and, regardless
of the number of shares it holds, each member bank has but one vote
in the election of directors of its Federal Reserve Bank. A member
bank may not vary the amount of its holdings of Reserve Bank stock
except as the amount of its own capital and surplus changes. Thus, it
cannot purchase additional stock in order to increase its earnings or to
increase its influence over the management of the Reserve Bank. Con­
versely, it cannot reduce its required holdings in order to release funds
for more profitable use. From the point of view of the member bank,
ownership of stock in a Federal Reserve Bank is more in the nature of
a compulsory participation in a public enterprise than an investment
acquired for control or income purposes.

Just as the Federal Reserve System as a whole was organized on
the principle of separation of powers and provision for checks and bal­
ances, so too were the boards of directors of the individual Federal
Reserve Banks organized.
The Federal Reserve Act groups the nine directors of each Reserve
Bank into three classes— A, B, and C— of three members each. The
term of office of each of the nine directors is three years, with the term
of one member of each class expiring each year. A director has no
authority to continue to serve after his term expires even though his
successor has not been elected or appointed.
Class A consists of three directors chosen by and representative of
the stockholding banks. These directors are usually officers or direc­
tors of member banks, although this is not required. The Federal Re­
serve Act sets forth no residential qualifications for them, but the Board
of Governors has decided th at in order to be truly representative Class
A directors must be residents of the Federal Reserve district from which
they are elected.
Class B consists of three directors chosen by the member banks
who at the time of their election are actively engaged in their district in
agriculture, commerce, or some other industrial pursuit. They may not
be an officer, director, or employee of any bank but may be a stock­
Class C consists of three directors appointed by the Board of Gov­
ernors of the Federal Reserve System. They must have been residents
of the district from which they are appointed for at least two years.
They may be neither an officer, a director, an employee, nor a stock­
holder of any bank.
No other qualifications for directors are specifically set forth in
the Federal Reserve Act and the only persons prohibited by the Act
from serving as directors are members of Congress, who are likewise
prohibited from serving as members of the Board of Governors or as
officers of Federal Reserve Banks. The principle which Congress had
in mind in adopting this prohibition, together with the nature of the
Reserve Banks as public institutions, has brought about in practice, how­
ever, a most significant qualification which Reserve Bank directors must
The Board of Governors early recognized that in view of the status
of the Reserve Banks as public institutions, performing essential func­
tions of a public nature, no situation which might be interpreted as
associating them with any political party or political activity should be
permitted to exist. Accordingly, in 1915 it adopted a resolution that
“persons holding political or public office in the service of the United
States, or of any State, Territory, county, district, political subdivision,
or municipality thereof, or acting as members of political party com­
mittees, cannot consistently with the spirit and underlying principles
of the Federal Reserve Act, serve as directors or officers of Federal
Reserve Banks.”
The Board has prescribed as a condition of eligibility that candi­
dates for election as directors of the Reserve Banks must comply with
the terms of this resolution. Consequently, candidates may be required
to resign a political or public office if retention of the office while a
candidate might tend to associate the Reserve Bank in the public mind
with political activities. Directors, as well as officers and employees,


of Federal Reserve Banks are, however, free to render public service
of a nonpolitical character so long as the positions do not interfere
with Bank duties and are free from political activities.
On the other side of the picture, the Board of Governors has at­
tempted to prevent the Federal Reserve System from being identified
with private interests. Thus, while the Board of Governors does not
assume any jurisdiction over the business affiliations of directors, except
insofar as they may affect the qualifications prescribed in the Act,
directors of Federal Reserve Banks and their branches may not use
references to their directorships for the purpose of advertising or pro­
moting private business connections. Any failure or neglect on the part
of a director to prevent or stop reference to his official position in
advertisements of a private business is considered by the Board of Gov­
ernors sufficient cause for calling upon him to sever his connection either
with the business advertised or with the Reserve Bank.

The chairman of the board of directors of a private business cor­
poration is generally elected by the other directors. In the Federal
Reserve System, however, the Board of Governors designates the Chair­
man of the Board of each Federal Reserve Bank annually from among
its appointees to the board of directors (the Class C directors). Another
Class C director is designated by the Board of Governors as Deputy
Chairman and, in the absence of both of these directors, the third Class
C director acts as chairman. Also unlike the situation in many private
business corporations where the chairman of the board may be the
chief executive or operating officer, the Chairman of the Board of a
Reserve Bank as such has no operating duties, the President being the
chief executive officer of each Bank.
The Chairman of the Board of a Reserve Bank is also designated
by the Board of Governors as Federal Reserve Agent. In this capacity
as well as that of Chairman he has a special relationship to the Board
of Governors. He is required by law to maintain a local office of the
Board of Governors on the premises of the Bank, to act as its official
representative, and to make regular reports to the Board of Governors,
including reports of any undue use of Reserve Bank credit by member
As Federal Reserve Agent he supervises and has ultimate responsi­
bility for the issuance and retirement of Federal Reserve notes and the
collateral pledged to secure them. In addition, he must report to the
Board of Governors any cases of unsafe or unsound banking practices
on the part of member bank officers and directors.
As Chairman of the Board he presides at all meetings of the board
of directors and supervises, through the directors’ Committee on Audit­
ing, the work of the General Auditor of the Bank. In this connection,

he must review the report of examination of the Federal Reserve Bank
which is made annually by examiners of the Board of Governors. The
Chairman is also responsible for conducting- the nomination and election
of Class A and B directors.
The Chairman and the Board of Governors have a mutual obliga­
tion to inform each other of matters of importance which should be
considered by the board of directors and, as one means of accomplish­
ing this, a Conference of Chairmen of the Reserve Banks has been
formed which meets from time to time with the Board of Governors.

A broad cross section of the public has generally been represented
on the boards of directors of all the Reserve Banks. This stems from
two factors— first, the Board of Governors’ views regarding the desira­
bility of rotating memberships on the boards and, second, an awareness
by member banks of the public nature of the Reserve Banks and recog­
nition by them of the wisdom of the Board’s views on rotation.
Since the Federal Reserve Banks are public institutions operated
in the public interest and not for private profit, the Board of Governors
has always felt that a certain degree of rotation in the membership of
the directorates of the Federal Reserve Banks and branches is desirable
in order to give the System the advantages of broader representation
over a period of time and help insure against a possible crystalization
of the influence of particular individuals or groups. The Board there­
fore follows a policy of not reappointing Class C directors after they
have served two full terms of three years each. An exception is made,
however, when a director who has served all or a part of two terms as
a director is then designated by the Board as Chairman and Federal
Reserve Agent. In such a case the director may serve another threeyear term, for a total of not more than three full terms as a director.
The Board has expressed the hope th at a similar policy would be
followed by member banks in the election of Class A and B directors.
As a consequence of this the member banks in most districts have volun­
tarily adopted procedures under which Class A and B directors are
elected on a rotating basis substantially similar to the Board’s policy
regarding Class C directors.
In the Fifth Federal Reserve District, for instance, a committee
composed of representatives from member banks in each state in the
District (including the District of Columbia) several years ago agreed
upon a schedule under which Class A directors would serve for only
one term and Class B directors would serve for two terms. The plan
provides also for the rotation of the Class A and B directorships among
the several states in the District and, to the extent possible, for the
representation of each state on the board of the Fifth District Reserve
Bank by at least one Class A or B director each year.

In setting up checks and balances to guard against any possible
undue influence over the Reserve Banks, Congress not only divided the
boards of directors into three classes but also designed a plan to insure
fair representation of both large and small member banks in the election
of the six Class A and B directors.

The Federal Reserve Act requires the Board of Governors to
group the member banks of each district into three general divisions
which are designated by number, with each group consisting as nearly
as possible of banks of similar capitalization. Generally, Group 1
contains the largest banks of the district but has the fewest number of
banks of any of the groups. Group 2, composed of the middle-sized
banks, contains around a third of the number of member banks in the
district, and Group 3 consists of the smaller banks.
Any one member bank in a group can participate in the election
of only two of the six elected directors— one Class A director and one
Class B director— and has but one vote for each. The group classifica­
tion therefore prevents the more numerous smaller banks from electing
all six of the Class A and B directors and assures substantially equal
representation of banks of differing size. This classification and the
fact that each bank has only one vote, regardless of the number of
shares of Reserve Bank stock it holds, also prevent a concentration of
voting power in the hands of a few larger banks. In other words, while
the vote of a larger bank may have a greater weight in its group in
the election of the two directors for whom it is entitled to vote than
the vote of a smaller bank in its group (because of the fewer number
of banks in the larger bank’s group), there is nevertheless an equality
of voting power within a group and between groups.
To further remove the possibility of domination of the boards of
directors by a particular group of banks, the Federal Reserve Act pro­
vides that no officer or director of a member bank is eligible to serve
as a Class A director unless he is nominated and elected by banks which
are members of the same group as the bank of which he is an officer or
director. In addition, a person who is an officer or director of more
than one member bank is not eligible for nomination as a Class A direc­
tor except by banks in the same group as the bank having the largest
aggregate resources of any of those of which he is an officer or director.
Similarly, if two or more member banks in the same Federal Re­
serve district are affiliated with the same holding company affiliate, only
one of these member banks in any one group may participate in the
nomination and election of Class A or B directors. If a holding com­
pany affiliate is itself a member bank which controls other member
banks in its own group, only one of the banks, including the holding
company affiliate, may participate in the nomination and election of
directors by the banks in that group.



In late summer or early fall of every year the Chairman of the
Board of Directors of each Reserve Bank advises the member banks
in his District by letter of the coming election of a Class A and a Class B
director to succeed the directors whose terms will expire at the end
of the year. Nominations are requested from the banks in the group
or groups entitled to vote in the particular election, and a time limit,
generally a month or so, is set for the submission of nominations.
A member bank may nominate a candidate for election as a Class A
or B director simply by having its board of directors pass a resolution
nominating the person of its choice and authorizing one of its officers
to certify the name of the candidate to the Chairman of the Board of
its Reserve Bank. The form which must be used in certifying nomina­
tions is furnished by the Chairman only to those banks entitled to vote
in the particular election.
The nomination process itself is thus a simple one. At the same
time, however, the nature of the Federal Reserve Banks as important
parts of the nation’s central banking system places upon member banks
a responsibility for nominating as candidates only those persons who
have evidenced an ability to contribute actively and intelligently to the
efficient direction of institutions dedicated to serving the public interest.
The continued development of the Reserve Banks and their increasing
usefulness to the public over the years is evidence that member banks
have generally recognized and met this responsibility.
The manner in which the banks in the several Federal Reserve
districts have recognized this responsibility as a practical m atter
through the nomination and election process differs, however. In some
districts, including the Fifth District, member banks have formed nomi­
nating committees whose purpose is to set up a list of candidates. In
other districts, committees of state bankers associations suggest candi­
The Fifth District nomination plan was set up by the Committee
which designed the plan for rotating Class A and B directors. In
practice it works in the following manner. Each year the member
banks from each state in the District select a representative to meet
with a representative of the member banks of each of the other states
as a Committee on Recommendations for Directors of the Federal Re­
serve Bank. The selection of these representatives is generally made
at a meeting held during the annual meeting of each state’s bankers
association. Several weeks before the Chairman of the Reserve Bank
requests nominations from member banks the Committee meets to con­
sider the particular persons it will recommend as candidates, giving
due regard to the provisions of the agreed-upon plan regarding length
of service of Class A and B directors and the rotation of these director­
ships among the several states.
A few days before the Chairman of the Reserve Bank requests
nominations, the Committee sends to all member banks in the District
a letter telling them the names of the persons it recommends for nomi­
nation and furnishes the banks a biographical sketch of the proposed
candidates. While compliance with this plan is purely voluntary on


the part of the member banks and they remain free to nominate someone
else, the Committee’s recommendations have been followed without
exception during the several years the present plan has been in effect.

Shortly after the date set for the nominations to be closed the
Chairman of the Reserve Bank advises all member banks in his District
of the dates during which the election will be held and furnishes them
a list of the candidates nominated, the banks nominating them, and a
biographical sketch of each candidate. The names of the nominees
and those making nominations may not be divulged prior to the publi­
cation of this list. A member bank entitled to vote in the election does
so by certifying to the Chairman of the Reserve Bank on a ballot fur­
nished by him its first, second, and other choices for director of the
class its group is electing. However, it cannot vote more than one
choice for any one candidate. The certification is made by the bank’s
president, cashier, or some other officer authorized by resolution of its
board or by amendment to its bylaws to cast the bank’s vote.
The ballot, when marked, is placed in an envelope on which ap­
pears only the words “BALLOT— Class A Director’s Election” or
“BALLOT— Class B Director’s Election,” as the case may be, and the
envelope sealed. The sealed envelope is then placed within another
envelope on which is printed a certification form for execution by the
authorized officer. This envelope is then sealed and mailed to the
Chairman of the Board of the Reserve Bank.
When received by the Chairman the certificate envelope, before
being opened, is checked against the authorization previously filed by
each member bank with the Chairman. If signed by a properly author­
ized officer, the certificate envelope is opened and the sealed envelope
within it containing the ballot is then deposited in a locked ballot box.
If there is some defect apparent in the certification, however, that enve­
lope and the envelope within it containing the ballot are returned to
the bank with a notice of the defect. In such a case the bank may
then submit the ballot again upon curing the defect in its certification.
With the closing of the polls, the ballot box is opened and the
ballots counted by tellers appointed by the Chairman of the Board.
The candidates are invited to be present or represented if they wish.
An immediate report of the results of the election is made by the Chair­
man to member banks and to the public.
While the election of Class A and B directors is in process, the
Board of Governors is quietly searching for men of standing in their
communities who are willing, out of a sense of community and public
responsibility, to serve as Class C directors. Before the end of the year,
member banks will receive notice from the Chairman of the Board of
their Federal Reserve Bank of the appointment by the Board of Gov­
ernors of a Class C director to succeed the director whose term is
The new directors of each class will execute oaths of office and,
with the first meeting of the board of their Reserve Bank held after the
first of the year, embark upon their service as a Federal Reserve Bank

FU NCTIONS o f d ir e c t o r s
A rough outline of the agenda of the first meeting of the board of
directors attended by a new Federal Reserve director might resemble
the following:
Approval of minutes of previous meeting.
Approval of minutes of meeting of Executive Committee.
Report of Discount Committee.
Report of Committee on Auditing.
Review of budget experience.
Reports from branches.
Administrative matters.
Review of current and prospective economic conditions.
Policy considerations.
Establishment of discount rate.

The first part of this agenda would indicate that the functions and
responsibilities of a Reserve Bank director are similar to those of the
director of any business corporation— as indeed they are in many
Reserve Bank directors prescribe the bylaws under which the
Bank’s general business is conducted and the privileges granted it are
exercised. They are responsible for the general conduct of the Bank’s
affairs, which the law requires them to administer “fairly and im­
partially and without discrimination in favor of or against any member
bank or banks.” The primary responsibility for the management
policies at each Bank therefore rests upon its directors, although certain
actions are subject to review by the Board of Governors.
A look at the second part of the agenda gives a hint of the material
differences between the responsibilities of Reserve Bank directors and
those of private business corporations. This distinction is inherent in
the public nature of the Federal Reserve Banks as the regional arms
of the nation’s central banking system. It is evidenced by the Board
of Governors’ 1915 resolution regarding the holding of political or pub­
lic office by directors or officers of Federal Reserve Banks. The prin­
ciple expressed in this resolution has led to the establishment of a
tradition that in accepting a directorship an individual puts aside the
narrow interest of any one group and serves the public generally.
Within the context of this public stewardship, however, a Reserve
Bank director can still contribute the benefit of his experience in his
own field of competence. For instance, Class A directors, who are
generally bankers, may impart their specialized professional experience
and advice in connection with the improvement of technical operations
and the overseeing and management of banking functions performed
by the Reserve Banks. The management experience of the directors
of all three classes can be an invaluable aid in improving the efficient
operation and management of the Reserve Banks. The directors’ ex­
perience and advice are important also as aids in judging the impact
of broad policy decisions affecting the supply and cost of money and
credit, and their knowledge of local conditions can provide valuable
economic information necessary in making such decisions. At the
same time their standing in their communities helps widen public under­
standing of the System’s functions and the purposes of its policy actions.
A review of some of the items which appear on the agenda of a
board meeting may provide a more complete picture of the functions of
Reserve Bank directors.



To a commercial bank one ol the most important advantages oi
Federal Reserve membership is that of obtainin0* additional voeowpa on
occasion by borrowing from its Federal Reserve Bank. The Reserve
Bank, however, is under no automatic obligation to grant credit to a
member bank applying for a loan. To the contrary, the System’s re­
sponsibilities for furthering the maintenance of sound credit conditions
in the nation and for providing an ultimate source of liquidity for the
entire banking system require the Reserve Banks to examine carefully
individual cases of member bank borrowings. In considering such
borrowings, the Reserve Banks must bear in mind the requirement of
the Federal Reserve Act that each Reserve Bank “keep itself informed
of the general character and amount of loans and investments of its
member banks with a view to ascertaining whether undue use is being
made of bank credit for the speculative carrying of or trading in securi­
ties, real estate or commodities or for any other purpose inconsistent
with the maintenance of sound credit conditions.” A decision whether
to extend credit in a particular case must, therefore, rest on the Reserve
Bank’s judgm ent concerning the member bank’s need and the use to
be made of the additional funds.
While the day-to-day decisions regarding the granting of credit to
member banks are carried out by the Reserve Bank’s officers, the Bank’s
directors are responsible for the conduct of these operations. As a
means of fulfilling this responsibility, the directors consider at each
meeting a current report by the Bank’s Discount Committee regarding
the operation of the “discount window.”

In conjunction with their general responsibility for supervising and
controlling the Reserve Banks, the board of directors of each Bank has
a special responsibility for the maintenance and supervision of an effec­
tive internal auditing system.
In each Reserve Bank there is an auditing staff which is organi­
zationally separate from that of the Bank. The officer in charge of
this staff, the General Auditor, reports directly to the Board of Direc­
tors of the Bank through the Chairman and the Committee on Auditing,
which is composed of members of the board. The functions of the
auditing staff are performed under general policies approved by the
Conference of Chairmen of Federal Reserve Banks and by the Board
of Governors. The manner in which the auditing function is carried
out is reviewed by the Board of Governors’ examiners in their annual
examination of each Reserve Bank. Copies of the reports of the Gen­
eral Auditor are furnished to the Board of Governors as a further aid
in the discharge of its responsibility for general supervision of the Re­
serve Banks.

While the Reserve Banks do not operate for a profit, they are
operated with regard to efficient management. Primary responsibility
for their economical and efficient operation rests with the directors of
each Bank.
The directors’ responsibilities in this area are of particular im­
portance in view of the fact the Federal Reserve Banks do not operate
on appropriated funds and Congress has placed no specific restriction
on their expenditures except a provision in the Federal Reserve Act
that they may incur only “necessary expenses.” The directors therefore
have a distinct duty to see that expenses are fully justified in relation
to the functions the Reserve Banks perform under the Federal Reserve

As a means of meeting this responsibility, the System’s budgetary
procedure provides that each Bank’s annual budget be approved by the
directors before it is submitted to the Board of Governors for considera­
tion. After the budget has been finally approved, the directors check
frequently during the year to see how closely actual performance com­
pares with budget estimates. Shortly after the first of the year, the
president of each Bank submits to his directors an experience report
comparing for the whole of the previous year the budget estimates with
actual expenses, together with a full explanation of any material differ­
ences. After consideration by the directors, the report is forwarded
to the Board of Governors, which is also responsible for supervising
the expenditures of the Banks.
In this area of expenditure control, the directors have a specific
responsibility for fixing the salaries of all officers and for approving
compensation paid all employees of the Banks.

fr o m b r a n c h e s

Federal Reserve branches are operated under the supervision of
branch boards of directors; however, a branch has no corporate identity
separate from that of its Reserve Bank and its operations are those of
the Reserve Bank. The responsibility of the Bank’s directors therefore
includes general responsibility for supervising its branches.
A majority of the directors of each branch are appointed by the
directors of the head office and the remainder by the Board of Gov­
ernors. The directors’ branch responsibilities thus include also respon­
sibility for appointing as branch directors men who are leaders in their
communities and who will bring to the branches the benefit and good
judgm ent of tested experience. Similarly, they are responsible for
assigning to the branches officers who are not only capable but who
will reflect credit upon the Bank and the Federal Reserve System. The
manner in which these responsibilities are met is an important factor
in determining the extent to which the regional principle which pre­
vailed in the establishment of the Federal Reserve System is carried out.
The “Reports from branches” item may be a report by the presi­
dent of the Bank, the officer in charge of the branch, or a branch direc­
tor— or all three. In addition to information regarding the operations
of the branch, the report will probably include significant economic
and banking developments in the branch territory.
As a further aid in meeting their branch responsibilities some of
the Reserve Banks hold occasional joint meetings with their branch
boards either at the head office or at the branches, and invite branch
directors to attend meetings of the head office board on an individual

Under this heading the directors may consider a host of matters
related to the general management of the Bank, many of which are like
those considered by directors of private corporations. Among the more
important of these is the appointment of all officers of the Bank, includ­
ing those at the branches, and passing upon promotions or changes in
official personnel.
By reason of their traditional standing and strategic location in
business and financial centers, the Reserve Banks are in a position to
exercise an important influence both through their customary operations
and through the dissemination of information and advice on matters
of monetary and credit policy, as well as matters of purely regional
interest. The Reserve Banks are likewise in a position to make valuable
contributions to the formulation of System policies and the effective
application of such policies in their districts and can help bring about
understanding and acceptance of them in the various communities


across the country. Actions taken by the Government and the Reserve
nnH m m ip ta H r -nnllP^r aro n f (rvpqt imnAv*fqnno
to the public generally, and it is desirable that an understanding oi
them be as widespread as possible
In view of these considerations, it is apparent th a t the directors
of Reserve Banks have a continuing responsibility for seeing that the
officers of the Banks are men who command respect in their communities
and who furnish leadership of the kind required. The character of
the operating management of the Banks is of primary importance in
its daily contacts with bankers and others and in public appraisal of
the quality of System administration.
The selection of the president and the first vice president of each
Bank, who serve for terms of five years, is a responsibility of major im­
portance, for the president is the chief executive officer of the Bank,
and all other executive officers and all employees are directly responsible
to him. In his absence the first vice president acts in his stead. The
presidents of the Reserve Banks also serve from time to time as mem­
bers of the Federal Open Market Committee, the System’s most im­
portant policy-making body. While the selection of these and other
officers and their salaries are subject to the final approval of the Board
of Governors, the responsibility of wise selection and provision for
adequate management succession nevertheless rests with the directors
of the Banks.
U t v m


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I l l U l I V - i a i J

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. j / v i v a i l v v


Included in the discussion of this item of the agenda are “Review
of Current and Prospective Economic Conditions,” “Policy Considera­
tions,” and “Discussion.”
The discount rate is perhaps the best known of the instruments of
credit policy lodged in the Reserve System and the only one with re­
spect to which the Reserve Bank directors have any responsibility. The
board of directors of each Reserve Bank is charged with establishing
the discount rate of the Bank at least once every fourteen days, subject
to the “review and determination” of the Board of Governors. While
the Board of Governors has the final word, the Reserve Bank directors
initiate changes in the rate.
The discount rate is the rate paid by member banks when they
borrow from the Reserve Bank. When some restraint in credit expan­
sion appears to be indicated, an increase in the rate would tend to dis­
courage borrowing by making it more costly, which would in turn put
pressure on the member banks to curtail their lending. W hen business
is slack there may be a reduction in the discount rate which would
tend to make credit cheaper.
In deciding what action to take with respect to the rate, the direc­
tors must be aware of w hat is being done with the other instruments of
credit policy (open m arket operations, reserve requirements, and
margin requirements). In these areas they are aided by recommenda­
tions of the president of the Bank, who participates in meetings of the
Federal Open Market Committee, where all of the instruments are dis­
cussed. In making his recommendations, though, the president does
not reveal to the directors any confidential information obtained through
his participation in Committee meetings, for his responsibilities to the
Committee and to his directors are separate.
In addition, the directors must be familiar with current and antici­
pated economic conditions, including monetary and credit developments.
In view of the impact of the taxing and spending policies of the Federal
Government on the economy, they must also consider developments
related to the fiscal operations of the Treasury. In these areas the
directors are aided at their meeting by reviews and analyses of signifi­
cant factors and trends presented by the president or the Bank’s

When all of this information has been presented the Chairman may
call upon his fellow directors for their observations and for reports of
developments in their own areas or businesses. With their widespread
contacts the directors are in a position to make significant contributions
to the common fund of knowledge. It is only after careful considera­
tion of all the pertinent facts obtainable that a decision is reached and
the discount rate established.
The agenda indicates that the meeting is now over. But adjourn­
ment of the meeting does not mean that the directors’ functions and
responsibilities have been adjourned until the next meeting. Perhaps
the most important function of Federal Reserve Bank directors is carried
out between meetings.
The consideration of regional conditions and the adaptation of
national policy to local circumstances is characteristic of the nation.
In the Federal Reserve System this is achieved through the presidents
and officers of the regional Reserve Banks and their boards of direc­
tors. While the direct participation of Reserve Bank directors in the
determination of national policy is limited to the establishment of the
discount rate of their Reserve Bank, directors can make an important
indirect contribution to the formulation of the entire range of credit
They can do so by making available to the presidents of their Re­
serve Banks current information on significant developments in their
business or area and by expressing to them their impressions and
opinions on economic developments and on desirable credit policy in
the light of those developments. The presidents therefore have the
benefit of the views of a broad cross section of the economy of their
districts which they are able to utilize in developing the personal views
which they present in meetings of the Federal Open Market Committee.
They have also the benefit of economic information and analysis fur­
nished by the Research Departments of the Reserve Banks.
The Open M arket Committee is the chief means through which
credit policy is formulated and implemented. The Committee provides
a body for centralized decision-making on credit policy in which is
reflected the thinking of people from all regions of the country. Here
diverse viewpoints and opinions are brought together and welded into
a national policy. If the formulation of System policy on such a basis
is to be effective, the Board of Governors and the presidents of the
Reserve Banks must have available as much current information as
possible regarding economic conditions and the effect of policy in all
parts of the nation.
While the Federal Reserve System’s research organization is wide­
ly recognized for its experience and the reliability of its economic in­
telligence in terms of statistics and other factual data, the development
of statistics and facts requires time— and in formulating credit policy
timeliness is of the essence. When economic changes are occurring
which suggest a shift in the direction or emphasis of credit policy, the
time lag in statistical and fact gathering may interfere with the most
effective policy formulation. It is in this area that Reserve Bank direc­
tors can play an important role. The advance information and “straws
in the wind” which Reserve Bank directors with their widespread con­
tacts can provide are an important means through which knowledge and
appraisal of significant economic changes in process can be obtained.
In addition to providing information on credit developments and think­
ing, the directors can furnish also important outlets through which an
understanding of System actions may be achieved. W ider understand­
ing makes for a more effective response to System actions.
The manner in which Reserve Bank directors fulfill their responsi­
bilities in this area is to a large extent the measure of the value of their
service to the System and to the nation.


Ten of the twelve Reserve Banks have established a total of twentyfour branches under the provisions of the Federal Reserve Act which
authorize the Board of Governors to permit or require any Reserve Bank
to establish branches. The Act provides that such branches shall be
operated, subject to regulations of the Board of Governors, under the
supervision of boards of directors consisting of not more than seven
nor less than three directors, with a majority of one being appointed
by the Reserve Bank and the remainder by the Board of Governors.
The Board of Governors has provided that branch boards must
consist of either five or seven directors, as may be determined by the
individual Reserve Bank. Three of the Reserve Banks, having a total
of eight branches, have elected to have five-man branch boards of direc­
tors, while the other seven Banks have seven-man boards at their six­
teen branches.
The term of office of directors of branches is three years when
the branch board consists of seven members and two years when it
consists of five members. The terms are so arranged that the term of
one director appointed by the Board of Governors and that of at least
one director appointed by the Reserve Bank expire at the end of each
While the Reserve Bank-appointed directors constitute a majority
of the branch boards of directors, the Board of Governors has provided
that the chairmen of the branch boards must be one of its appointees,
although the manner of selection is left to the discretion of each Re­
serve Bank.

The Federal Reserve Act provides no specific qualifications for
branch directors, but the branch directorates have, under regulations
of the Board and by practice, been constituted somewhat along the
lines of the head office boards. The Board of Governors in making
its appointments of branch directors selects persons who are actively
engaged in agriculture, industry, commerce, or in the practice of a pro­
fession and who are not primarily engaged in banking. The Reserve
Banks, on the other hand, generally appoint persons engaged in bank­
ing, although they may appoint persons engaged in other businesses.
All branch directors must be citizens of the United States and residents
of the branch territory, and their business interests must be primarily
within the branch territory.

The membership of directors of branch boards is rotated in a m an­
ner similar to the Board of Governors’ policy regarding rotation of
Class C directors of the Reserve Banks. Both Board-appointed and
Reserve Bank-appointed directors may serve consecutive terms totaling

six years but are not then eligible for reappointment. However, a
director who has had six years of continuous service may be reappointed
after two years off the branch board when the branch board has a
five-man directorate. When the branch board is composed of seven
members, a director with six years of continuous service may be reap­
pointed after three years have elapsed since such service.
The specific duties of branch directors are essentially advisory in
nature. The operations of a branch are the operations of the Reserve
Bank, and the head office directors, under the general supervision of
the Board of Governors, are responsible for the Bank’s operations.
This is not to say that branch directors serve only in an inactive or
honorary capacity. Their wide experience and their knowledge of
local conditions can be an invaluable aid to the Bank’s directors in the
operation of the branch.
Their role extends beyond advice on operational matters, how­
ever. Branch directors can, and should, play as significant a part as
the head office directors in contributing indirectly to the formulation of
national credit policy and to an understanding of such policy. They,
no less than the directors of the Bank, can provide a valuable source
of grass roots information and opinion on significant economic develop­
ments and the effects of credit policy. At the same time their close
association with the System enables them to furnish a valuable link
between it and the public and to further understanding of the System
and its actions.

The Federal Reserve System is a complex organization whose
operations affect every region, every community, every citizen in the
nation. Its present organization, evolved from experience, provides for
the establishment of national policy based on regional participation, in
contrast to the alternative of centralized determination and adminis­
tration of policy in which meaningful participation of regional repre­
sentatives is absent.
The System’s present processes of policy determination, implementa­
tion, and administration are thus consistent with the political, economic,
and social traditions of the nation. The extent to which “men of stature
and ability . . . dedicated to the public welfare” continue to be willing to
serve the Federal Reserve System may in large measure determine whether
this will continue to be true.



During 1961 the volume of operations in all departments of the
Richmond Bank and its Baltimore and Charlotte Branches expanded
along with the economy of the Fifth District.
Over $103 billion in checks were cleared, $3.5 billion more than
in 1960; and over $151 million in coins were received and paid out,
$17.6 million more than the previous year. The amount of currency
handled exceeded $5 billion. Transfers of funds topped the $100 bil­
lion mark— up approximately 1 % to a total of $105,202,198,215.
Our net earnings before payments to the U. S. Treasury amounted
to $48 million, and member banks received $1,168,329.36 in statu­
tory dividends during the year. Surplus account was increased
$2,582,900.00 (surplus is twice paid-in capital), and the remaining net
earnings of $44,327,343.00 were paid to the U. S. Treasury.
Our capital stock, based on the capital and surplus of District
member banks, rose $1,291,450.00 during 1961. In the past twelve
months credit totaling over $1.7 billion was extended to 112 member
Publications and statistical reports of the Bank were widely dis­
tributed during the year. Over 107,000 copies of our Monthly Review
were sent to bankers, businessmen, teachers, and other interested indi­
viduals, and approximately 220,000 System publications were distrib­
uted by our Bank. In February three exhibits of currency were made
available to District member banks for display. The exhibits, along
with our coin and facsimile currency displays, continued to be in great
demand throughout the year.
Our annual Junior Bankers Seminar was held in April of 1961.
One hundred and ninety bankers, representing 134 District member
banks and branches, attended the two-day session. A similar meeting
is planned for the spring of 1962.

This program moved forward in the District on several fronts. In
early spring, meetings for commercial bankers were held in each of
the 46 emergency clearing group areas, providing an opportunity for
explanation and discussion of the Check Agent Plan. The Treasury’s
Emergency Banking Regulation No. 1, with related documents, was
distributed to all banks at mid-year. Arrangements were begun with
selected member banks, strategically located throughout the District,
to serve as cash agents for distribution of currency in an emergency;
details of this plan will be in forthcoming emergency circulars. Although
some commercial banks of the District embarked on emergency pre­
paredness programs, much remains to be done in this field. At our Head
Office and Branches, preparation and stocking of fallout shelters to
meet civil defense standards are nearing completion.

This year the decision was made to acquire electronic equipment
for check handling and data processing. These steps are in keeping
with the Bank’s policy of utilizing new methods and equipment to im­
prove internal operating procedures as well as services to member
In 1961, the Federal Reserve System, with the assistance of the
Stanford Research Institute, completed its evaluation of electronic check

handling equipment produced by five manufacturers. The results of
tests at five Federal Reserve Banks proved that the electronic process­
ing of checks through the magnetic ink character recognition (MICR)
media is both practical and economical.
The Head Office and the Baltimore and Charlotte Branches have
low speed proof machine amount encoders in operation now. The Head
Office will install a high speed unit, composed of several pieces of
equipment, in the fall of 1962; the Branches will install high speed
units early in 1963. This equipment will permit complete automation
of the check handling procedure from the incoming proof to the prepa­
ration of outgoing cash letters to the banks.
For a number of years this Bank has used tabulating equipment
for internal accounting procedures and for processing statistical data.
A comprehensive review, conducted by a committee of officers, preceded
the recent decision to acquire an IBM 1401 RAMAC data processing
system as replacement for the present tabulating equipment at Rich­
mond. In anticipation of the mid-1962 installation date, a five-man
team selected from within the Bank is currently programming present
punched-card procedures for conversion to the computer. Orientation
and training of Bank personnel to utilize the electronic data processing
system have commenced and will continue into 1962.
The study indicated that the 1401 RAMAC can process all work
now performed on tabulating equipment in considerably less time and
with greater flexibility. In addition, the speed and capacity of the
new equipment will permit handling of a number of procedures now
performed manually. Also, statistical analyses and special studies in
connection with the economic research program, heretofore considered
impractical because of time limits and expense, can be accommodated
by the computer. These several advantages, including the ability to
handle a reasonable increase in volume of present operations, will be
achieved for approximately the same cost as the present system.

Three newly formed Fifth District banks entered the Reserve Sys­
tem during the year. The American National Bank, Silver Spring,
Maryland, with branches at Rockville and Wheaton opened for busi­
ness on April 10. On August 10 the First National Bank of Laurens,
Laurens, South Carolina, began banking operations, and on Novem­
ber 22 the Elkridge National Bank, Elkridge, Maryland, became the
428th District member bank.

There were several changes in the Bank’s official staff during 1961.
On February 28, Hugh Leach, president of the Bank since 1936, retired
and was succeeded by Edward A. Wayne, former first vice president.
Aubrey N. Heflin, former vice president and general counsel, was
named first vice president, succeeding Mr. Wayne. On June 1,
W elford S. Farm er was elected general counsel and Victor E. Pregeant,
III, was named assistant vice president and secretary.
Garnett N. Campbell retired on May 31 as assistant general auditor,
and his position was assumed by Roger P. Schad. The year 1961 also
saw the retirement of Vice President N. L. Armistead.
At the Charlotte Branch Robert R. Fentress, former assistant
cashier, was named assistant vice president, effective July 1.


C o m pa r a tiv e S tatem ent


C ondition

December 31,



December 31,





Redemption fund for Federal Reserve notes



Gold certificate account



Federal Reserve notes of other banks . __



Other cash




Discounts and advances _____________________




U. S. Government securities:
Bills _______________________
















Notes Bonds

_ _____________

Cash items in process of collection


Bank premises ____________________



Other assets ______________________








Federal Reserve notes ______________
Member bank— reserve accounts



U. S. Treasurer— general account



Foreign __________________ ___ _____



Other _ ___________________________






Deferred availability cash items



Other liabilities _________________






Capital paid i n ______________



Surplus ______________________







Other capital accounts

Contingent liability on acceptances purchased for foreign correspondents




C o m pa r a t iv e S

tatem ent


E a r n in g ? AND EX 1*15NSES

E A R N IN G S :


Discounts and advances _____
Interest on U. S. Government securities ______________
Other earnings ______________________ _____________________













Profit on sales of U. S. Government securities (net) _________________________
Transferred from Reserves for contingencies (net) __________________________
All other ________________________________________________________________________



TOTAL ADDITIONS ___________________________________________ ___ _________









$ 1,168,329.36

$ 1,083,429.25






____ ________

Operating expenses (including depreciation on bank premises) after deduct­
ing reimbursements received for certain Fiscal Agency and other expenses
Assessments for expenses of Board of Governors_________________ _____ _ .
Cost of Federal Reserve currency ___________________________________________ .
N ET EXPEN SES _____________________________________________________________________
CURRENT NET E AR N IN G S ________________________________________________________________________



Net Additions ___________________________________________________________________


Dividends paid ___________________________________________ — __ ____ ____
Paid U. S. Treasury (interest on Federal Reserve notes) ____________________
Transferred to surplus _____ __________________________________________________


Balance at close of previous year ________________________________________________
Addition account of profits for year _____________________________________________
BALAN CE A T CLOSE OF CURRENT Y E A R _____________________



(Representing amount paid in, which is 50% of amount subscribed)

Cancelled during the year

BAL A N C E A T CLOSE OF CU RRENT Y E A R ____________________





Balance at close of previous y e a r ______________________________________________
Issued during the y e a r _________________________________________________________





Alonzo G. Decker, Jr.

Chairman of the Board and Federal Reserve Agent

Edwin Hyde

Deputy Chairman of the Board


H. H. Cooley

President, The Round Hill National Bank
Round Hill, Virginia (Term expires December 31, 1962)

A. Scott Offutt

Chairman of the Board and President
The First National Bank of Washington, Washington, D. C.
(Term expires December 31, 1961)

Addison H. Reese


J. McKenny Willis, Jr., President
The Easton National Bank of Maryland
Easton, Maryland
(Term expires December 31, 1964)

President, North Carolina National Bank
Charlotte, North Carolina (Term expires December 31, 1963)


L. Vinton Hershey

President, Hagerstown Shoe Company
Hagerstown, Maryland (Term expires December 31, 1961)

Robert E. L. Johnson


Robert Richardson Coker, President
Coker’s Pedigreed Seed Company
Hartsville, South Carolina
(Term expires December 31, 1964)

Chairman of the Board, Woodward & Lothrop, Inc.
Washington, D. C. (Term expires December 31, 1963)

Raymond E. Salvati

Chairman of the Board, Island Creek Coal Company
Huntington, West Virginia
(Term expires December 31, 1962)


Alonzo G. Decker, Jr.

President, The Black & Decker Manufacturing Company
Towson, Maryland (Term expires December 31, 1962)

William H. Grier

President, Rock Hill Printing & Finishing Co.
Rock Hill, South Carolina (Term expires December 31, 1963)

Edwin Hyde

President, Miller & Rhoads, Inc.
Richmond, Virginia (Term expires December 31, 1964)


Robert B. Hobbs

Chairman of the Board, First National Bank of Baltimore
Baltimore, Maryland (Term expires December 31, 1962)



Edward A. Wayne

Aubrey N. Heflin


F irst Vice President

J. Gordon Dickerson, Jr.

Raymond E. Sanders, Jr.
James M. Slay

Vice President

A ssista n t Vice P resident

Joseph F. Viverette

Vice President

Welford S. Farm er

Robert P. Black

General Counsel

Donald F. Hagner

A ssistant Vice P resident

A ssista nt Vice President

John G. Deitrick

Vice President

Edmund F. Mac Donald

A ssistan t Cashier

A ssista nt Vice President

Stuart P. Fishburne

Vice President

Upton S. Martin

A ssista nt Vice President

H. Ernest Ford

Vice President

John L. Nosker

William B. Harrison, III

Joseph M. Nowlan
Vice President and Cashier

A ssista nt Vice President

Victor E. Pregeant, III
A ssista n t Vice President
and Secretary

B. U. Ratchford
G. Harold Snead

William H. Gentry, Jr.
John C. Horigan
Chief E xa m in er

Robert L. Miller
A ssista nt Cashier

Wythe B. W akeham

Roger P. Schad
Assistant General Auditor

General Auditor

Donald F. Hagner
Vice President

A. A. Stewart, Jr.

Edmund F. Mac Donald
Vice President

Stanhope A. Ligon

A ssista n t Cashier

A ssistant Cashier

Vice President


John E. Friend

A ssista nt Cashier

A ssista nt Vice President

Vice President

Clifford B. Beavers

liA I /r iM C ) R E 1 { R A N C H

B. F. Armstrong
A ssista n t Cashier

A. C. W ienert

E. Riggs Jones, Jr.

A ssista n t Cashier

A ssista n t Cashier

C11A RIA )TTE 1i l l A N( 11

Robert R. Fentress
A ssista n t Vice President

Fred C. Krueger, Jr.

E. Clinton Mondy
Assistant Cashier

A ssista n t Cashier





Gordon M. Cairns
H arry B. Cummings
Harvey E. Emmart
Jam es W. McElroy
John T. Menzies, Jr

Dean of Agriculture, University of Maryland
College Park, Maryland (Term expires December 31, 1962)
Vice President and General Manager
Metal Products Division, Koppers Company, Inc.
Baltimore, Maryland (Term expires December 31, 1963)
Senior Vice President and Cashier, Maryland National Bank
Baltimore, Maryland (Term expires December 31, 1964)
Director, First National Bank of Baltimore
Baltimore, Maryland (Term expires December 31, 1962)
President, The Crosse & Blackwell Company
Baltimore, Maryland (Term expires December 31, 1961)

J. N. Shumate
John W. Stout


Leonard C. Crewe, Jr., President and
Treasurer, Maryland Fine and Specialty
Wire Company, Inc.
Cockeysville, Maryland
(Term expires December 31, 1964)

President, The Farmers National Bank of Annapolis
Annapolis, Maryland (Term expires December 31, 1963)
President, The Parkersburg National Bank
Parkersburg, West Virginia
(Term expires December 31, 1961)


Martin Piribek, Executive Vice President
The First National Bank of Morgantown
Morgantown, West Virginia
(Term expires December 31, 1964)


George H. Aull
J. C. Cowan, Jr.
W. W. McEaehern
G. Harold Myrick
I. W. Stewart

Agricultural Economist, Clemson College
Clemson, South Carolina (Term expires December 31, 1963)
Vice Chairman of the Board, Burlington Industries, Inc.
Greensboro, North Carolina
(Term expires December 31, 1962)
President, The South Carolina National Bank
Greenville, South Carolina (Term expires December 31, 1963)
Executive Vice President and Trust Officer
First National Bank
Lincolnton, North Carolina (Term expires December 31, 1962)
Honorary Chairman of the Board
North Carolina National Bank
Charlotte, North Carolina (Term expires December 31, 1961)

Clarence P. Street
G. G. Watts


Joe H. Robinson, Senior Vice President
Wachovia Bank and Trust Company
Charlotte, North Carolina
(Term expires December 31, 1964)

President, McDevitt & Street Co.
Charlotte, North Carolina (Term expires December 31, 1964)
The Merchants and Planters National Bank of Gaffney
Gaffney, South Carolina (Term expires December 31, 1961)



Wallace W . Brawley, President, The Com­
mercial National Bank of Spartanburg
Spartanburg, South Carolina
(Term expires December 31, 1964)