ANNUAL REPORT Bank of Cleveland

• Federal District 'n Manufacturing

about 12% of "value .e., value of prod uct

"value 1/10%,

infor-

Cd c o .•... ro Z I+- o ~

(f) ro 0> c FEDERAL RJ<: SEHVE B~\.NT{:

CLEVELAND I,OHIO

January 18, 1960

To the Banks in the Fourth Federal Re serve District:

We are pleased to present this report of of Cleveland for 1959.

This has been a year of economic crosscurrents. The industrial production index reached a new high but was reversed by an unusually long strike involving producers of basic steel. Because industries in this District are dependent upon substantial tonnages of steel, the prolonged strike had a considerable adverse effect on both production and employment. A resumption of steel production by court order toward the year end relieved the supply situation and permitted metal-using industries to resume produc- tion and rehire most of their working forces.

With the opening of the St. Lawrence Seaway to navigation of the Great Lakes, many ships of larger tonnage bearing foreign flags called at the port cities of the District on Lake Erie. This traffic bids well to increase in the years to corne, giving shippers the opportunity, at some savings of cost, to receive from and ship to foreign ports a myriad of products needed or produced in this District. Of course, there is involved in the Seaway commerce increased competition from abroad in many lines of American production.

The volume of operations at all three office s of this bank continued to increase during the year. The cooperation of the Fourth District banking institutions has been outstanding and is gratefull y acknowledged.

Leaders in the fields of industry, agriculture, and finance have given freely of their counsel, thereby assisting us greatly in meeting our statutory responsibilities.

President Chairman of the Board TA S L E OF Potential Problems for induced by developments during 1959 ...... 3 CONTENTS

Chronicles of 1959 ...... 8

Audit and Examination of a Federal Reserve Bank .... 10

Statement of Condition ...... 12

Earnings and Expenses ...... 13

Directors 14

Officers 15

Branch Directors and Officers 16 POTENTIAL.:

PROBLEMS

for MONEfARY POLICY

induced b¥ developments during 1959

At least three potentially critical prob- to less than 25 percent of total deposits. lems for monetary and fiscal policy can be The steady succession of yearly increments observed in scanning the economic heavens in the subsequent years, however, has at the close of 1959. Their existence can finally altered the situation notably. Dur- be detected without the aid of a powerful ing the past year, the ratio of loans to radio telescope or a load of electronic gear deposits crossed the 50 percent line-the circling through space. They are visible to highest ratio in many years. (See chart.) the naked eye. Admittedly, there is no inherent or legal Lending Capacity. The first of the triad significance in the 50 percent ratio. In which has some implications for the future fact, during a stretch of years in the '20s is the protracted growth of bank loans. It and early '30s, the commercial banking is true that total loans of all commercial system consistently maintained a 60-70 banks combined have been in a strongly percent ratio of loans to deposit liabilities rising trend throughout the entire postwar - a figure which may be regarded as a period. The expansion began from a rela- rough measure of capacity operations, so tively low (wartime) level; and the re- to speak. If commercial banks in the ag- juvenation of this major function of com- gregate still regard that former ratio as mercial banking was looked upon with a reasonable and conservative maximum satisfaction outside banking circles as well in today's economic environment and out- as within. Deposits were expanding, too, look, then several more years of consider- which meant that with respect to any able loan expansion are clearly possible, individual bank its resources were being assuming no sudden turnabout in deposits. used increasingly to facilitate growth in Whatever the implications of this grad- local trade, industry, and agriculture. ual return toward an old pre-depression Moreover, in the beginning of the period criterion, there is considerably less unused there was unprecedented room for expan- "capacity" now than there was only a few sion of loans. In 1946, for example, at all months or years ago. It should hardly be commercial banks total loans were equal assumed, moreover, that the postwar rate

3 will be maintained right up of the trio of developments to be considered t when loans reach a certain here is the change in the liquidity of the ceiling in relation to deposits. economy during 1959. During much of the before the maximum ratio is reached, year, the economy was being subjected to rious individual banks will have insti- forces tending to generate an unsustain- tuted some change in lending policy. The able rate of expansion, or an undesirable question nearer at hand is whether in further of prices-or both. Under certain places such changes have already such circumstances, it is widely conceded begun to take place. If so, a new element that monetary policy should be restrictive

RATIO of LOANS to DEPOSITS, all Commercial Banks

Billions 01 dollars 240

221l

200

180

160

140 ~+= 120

100

80

60

40

20 f.--+--

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Plolted at year end; 1959 partly estimated

is entering the picture, even though only in some degree, so as to discourage mar- in trace quantities. Restraint imposed from ginal and unsound commitments and to without through the medium of monetary curb mere cyclical exuberance in the inter- policy may become increasingly supple- est of longer-term growth and stability. mented by restraint imposed from within. An accompanying chart suggests the ex- This would be a departure from the post- tent to which monetary policy conformed war experience to date and would call for to that dictum during 1959, and also the a new evaluation of the effectiveness of extent to which the accomplishment of any given monetary policy. Unfortunately, restraint was complicated, 0'1' even vitiated, there is no laboratory wherein technicians by a unique turn of events in management can experiment to see whether any such of the Federal debt. strain is in existence already and to The manner in which monetary policy ascertain at what point the ratio of loans leaned against prevailing winds is ob- to deposits tends to "go critical," to borrow servable in the chart. During the infla- a term from atomic science. tionary years of 1956-7, when much of the An Embarrassment of Liquidity. The second expansion in Gross National Product was

4 merely the result of rising prices, the the chart. (In earlier years, the changes secular growth in the money supply was in outstanding Treasury bills were almost retarded to a slower rate. Subsequently, nominal and are not depicted in the chart.) during the of 1958, monetary Most of the holders of those short-term policy was designed to counteract the con- bills undoubtedly regard them as an alter- tractive forces by increasing the liquidity native form of cash-----a new species of of the economy. The money supply-or interest-bearing money. With that bloc of working capital of the nation-increased purchasing power so regarded by most of more rapidly than did the gross national its holders, it follows that the economy output of goods and services. But very was more liquid by late 1959 than for some soon the recession-minded policy was once years past - a situation which certainly more converted-gradually-into one of was not the aim and objective of monetary restraint as inflationary and expansionary policy during the year. forces were reattaining ascendancy. Fortunately, in the interest of economic It is impossible, however, to evaluate stability and growth, it is not anticipated with any precision the effects of the most that a repeat performance is about to be- recent contracyclical action because of an gin. The Federal deficit, which has been extraordinary concurrent development in sizable and which has made necessary a debt management-the issuance of more corresponding increase in government obli- than $14 billion of near-money in the form gations outstanding, may be of nominal of U. S. Treasury bills during the year dimensions or disappear altogether in ended September 30. The magnitude of calendar 1960. Moreover, the Treasury may this emission, as against current changes be granted more flexibility than present in the supply of conventional money, is statutes and market conditions permit as depicted by the slope of the dashed line in to the kind of maturities offered. The mere

MONEY SUPPLY and the GROSS NATIONAL PRODUCT

Billions of dollars Billions of dollars -- 300 600

. . . durinl lbe past year, lbe powtb of the mone, suppl, was of moderate proportions.

Meanwhile, however, a 150 record amount of near· money - new U. S. Treasury bills - was issued. o [--~~--'----l--~"-'~"--'-r--~'-'-----I~---~~------~--!-"~-~------l0 1~ 1m 1~ 1~ 1~ Money supp~ plotted last Wednesday in September; GNP plotted quarterly

5 prospect, however, that this recent infla- and private, have managed to accumulate tion of the currency, so to speak, was a one- during the postwar years. Such resources, time operation does not dispel the basic chiefly in the form of bank deposits and problem. The securities are in the hands short- term government securities, now of institutions and corporations who may total roughly $17 billion as against only wish to liquidate substantial quantities some $6 billion at the close of the war. over the coming months or year. It would An accompanying chart suggests, however, be most upsetting if, under conditions of that the growth of foreign claims on gold ebullient prosperity, it should become neces- has not been markedly inconsistent with sary to expand bank reserves in order to the concurrent expansion of the American accommodate a significant liquidation of economy, represented by the Gross Na- bills by nonbank holders. Here again, there tional Product. Furthermore, in the light is no laboratory where the probabilities of the postwar industrial recovery of many can be evaluated and the alternative de- overseas economies, from a condition of fense measures weighed. near prostration to one of record-breaking And How About Gold? The third and final production and trade, the $11 billion development of 1959 to get special mention growth of dollar resources seems most here is the much publicized attrition of the realistic and justifiable. nation's monetary gold stocks, and the The crux of the matter is not that short- problems which may derive therefrom, term liabilities to foreigners have grown particularly with regard to monetary to $17 billion, but that the monetary gold policy. reserves of this country show no net in- The proximate villain is usually iden- crease since 1946. (See final chart.) In tified as the very sizable liquid dollar re- fact, the margin of headroom has been sources which foreign institutions, public greatly reduced from that which existed

SHORT-TERM LIABILITIES TO FOREIGNERS and the GROSS NATIONAL PRODUCT

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Short·lerm tiabititi.s plotted .11.ar end; GNf.plott.d .nnuall ; 959.w!'1 eslimaleUP1!.!r b!!l!!ol!!.,h •••••.• __ ...1

6 as recently as ten years ago, when U. S. petitive in world markets, U. S. monetary monetary gold stocks had reached their all- policy may have to undergo something ap- time high. proaching a revolutionary transformation. This is not to imply that the nation's Priority may have to be given to a pro- gold reserves are rapidly approaching in- gram designed to conserve the integrity adequacy per se. For a century, Great of the dollar in external affairs. That Britain managed to perform the functions could mean a level of interest rates high of a banker for world trade and invest- enough to discourage the outflow of gold, ment with a much smaller backlog of gold accompanied perhaps by a period of aus- vis-a-vis outstanding external liabilities. terity and readjustment; high-level em- But an accomplishment of that sort re- ployment and price stability might have quired astute management. The rate of to yield to a more important criterion. attrition of this nation's gold reserves It is to be hoped that such a drastic within the past two years suggests that shift of monetary policy will not soon be- the problem cannot be parried by leisurely come urgent. The United States has had protestations or procrastination. very little experience in the matter of de- Response to the realities of the situation fending its monetary unit against com- has already occurred in the political petitive forces abroad, or against foreign sphere. Other nations are being impor- reaction to unsound financial and fiscal tuned officially to revise their trade policies policies at home. Yet here one may see so as to reduce the pressure against this the beginning of another challenge to country's adverse balance of payments. American technology, quite different in But if diplomacy should fall short and, nature but not in degree from that which perhaps more importantly, if foreign manu- it faces in the realm of military science factured products should become more com- and cosmic exploration.

SHORT-TERM LIABILITIES TO FOREIGNERS and MONETARY GOLD STOCKS

. 6

4

o '48 Plotted at ye,,·end, except aII·time hilh in 1949, and 1958·1959

7 CHRO OF

FIRST QUARTER I CASTRO takes over in CUBA I Singopol TlBEIT invaded by Chinese Reds 01 MIKOYAN visits U.S.

BIG F 0

JOHN FOSTER Dl

19·week glass s t.rike ends

.... IN DUST~IAL PRODUCTION a.t a.ll-U I I I Egg prices at l8·yr. low

····INSTALMENT DEBT growi exceeds 35 billior

Discount Rate

upped to 3% ••••••••••••••••••••••••••••••••••••••••••••• I ••• to :

Gov't bond yield rising above 4 % Treasu

Social Security Tax goes to 2Y2% (on $4800) •••• JOINT ECONOMlt COMMITTEE studying EMPLOYME I I I 86TH CONGRESS IN SESSION I ~ HAWAII to become 50th State

OIL IMPORTS put under control

VANGUARD II PIONEER IV DISCOVERER II MONKE' in nose c

1st JET SERVICE ST. LAWRENCE SEAWAY N.Y.-l.A. opened

FRANK LLOYD WRIGHT at 89 FOURTH QUARTER

IKE in IKE flies Ie becomes EUROPE to India, etc. ,ation NIXON visits if RUSSIA KH~~!1f~EV Flare-up in LAOS l I BRITISH ELECTION UR at GENEVA I t RAoCLIHE REPORT I JLIIES at 71 (Eng.) I 1 I S TEE l S T R IKE - Lon g e s It. 0 n r- e cor d Auto production , curtailed

.lYl.ehigh.···· I I lst Compact Car 1 intr duced COnSUITlerprices at.\reCOrd high ... but basic commod it ; J index at 10 yr. low ngr rapidly···· C~·~RIC~S this year: 1 for 1st time ettO at all_t. Imports hit $15 billion for 1st time (3.08% yield lllle 11 "Magic Fives" = record low) 19-11 offered by Treas'y. 3Y2% •••..••..•....•...... ••....•..•...•...... •..•.....•.•... to 4% Public Debt. hit.s !:paso EilliO!•. (up S12 Billion in 12 months) lryj asks removallof 4~% ceiling ••••••••••• request denied •••••••• but Selries E-type return is upped to 3%% (on over 5-year matur-it'[es] I Vidory lV> 's dip below Bol

NT, GROWTH andlPRICE LEVELS···· I I I FE Da'mRenEdSe'dACT...... •..•.•.•...... ••.•••..•..•••..•..••... Some VAULT CASH now eligible as reserves \ JL -+ ~ ~ •.• Housing Legislation deadlocked •.•••.•.•••••. •• •••• 3r~ Housing bill signed LABOR REFORM ~CT signed I

fED. GASOLINETAX upped\I' (to Did Highway Fundi,

Reds photo BACK of Moon VS return PADDLE -WHEEL SATELLITE REDS hit MOON :on8 ••. QUIZ PROGRAM EXPOSE ••••

BERNA~D BERENSON at 94 9 in Florence

Cr-a nb er-rie s AU D IT and EXAMINATION of a FEDERAL RESERVE

There is a general awareness on the Board of Governors of the Federal Re- the part of member banks and of serve System in Washington. The General the public that extensive measures Auditor provides a copy of his monthly are taken to assure the accuracy report for the information of the president and integrity of a Federal Reserve bank's and the first vice president of the bank, operations. The nature and scope of the after the report has been reviewed and safeguards, however, may not be so widely approved by the Audit Review Committee understood. of the Board of Directors. There is a double system of checks or Each of the two branches of this bank review superimposed upon the workaday has an auditor and a resident audit staff. precautions which are provided by each of The branch auditors are responsible to the the operating departments of the bank. General Auditor of the bank and the re- One set of checks is accomplished through ports of examinations made by them must the work of the bank's general auditor and be approved by the General Auditor. After his staff. The other is provided by an un- his approval, copies of the reports are announced examination made each year by made available to the chairman of the the examining staff of the Board of Gov- Board of Directors of the branch and to ernors of the Federal Reserve System. the vice president in charge of the branch. Each of these is explained briefly below- The various operating departments of chiefly with reference to the Federal Re- the bank are subject to audit without prior Shadograph serve Bank of Cleveland, although the notice. The minimum number of full-scale basic procedure is common to all twelve audits of the different departments is Reserve banks. established by the Conference of General The Audit Function. The General Auditor Auditors of the Federal Reserve System. of the bank, assisted by a staff of specialists, Depending on the nature of operations, is resident at the bank, but is independent the frequency of such audits varies from of the official staff. He is responsible direct- a continuous system in the case of some ly to the Board of Directors of the bank, operations to periodic audits of others. and reports to it each month, as well as to Continuous audits, for example, apply to

10 current expenses, earnings, and shipments weeks. The results of the examination are of securities and cash (both incoming and reported to the Board of Governors of the outgoing) . Federal Reserve System and to the Board In the case of current expenses, the of Directors of the bank. Copies of the transactions are also inspected to deter- report are also made available to the senior mine their conformity with regulations officers of the bank. prescribed by the Board of Governors. Such an examination consists in general In checking expenses, the audit department of the verification of the assets and liabil- may devote as much time to a small out- ities appearing in the balance sheet, verifi- lay as to a large outlay, in case a matter cation of earnings and expenses since the of principle is involved. previous examination, verification of the The work of the audit staff is extensive bank's liability as custodian, verification as well as intensive. Mechanical aids are of accounts maintained by the bank in its used wherever feasible. Examples are sug- capacity as fiscal agent of the United gested by small photos on this page and States in the issuance of Government se- the facing page, viz. a "Tickometer" for curities, an audit of other Reserve bank counting paper currency or savings bond and fiscal agency functions not reflected stubs, and "Shadograph" scales, with spe- in the balance sheet, and verification of un- cial calibrations, for the weighing of paper issued Federal Reserve notes held in the 'I'ickometer currency and wrapped coin. One Shado- joint custody of the bank and the Federal graph scale is designed to weigh paper Reserve Agent. currency in strapped packages of one hun- In addition to the several verifications dred pieces. That scale is calibrated to the mentioned above, the examination by the weight of a bill. Another Shadograph scale Board of Governors includes a review of is designed for the weighing of rolls of the bank's operating policies and proce- wrapped coin and is calibrated for the dures in the light of the bank's responsi- weights of a dime, a nickel, and a quarter. bilities under law, as well as from the Also, "Exact Weight" scales are used for standpoint of sound business practice. the weighing of cartons of wrapped coin In all of the above, the Federal Reserve and bags of loose coin. bank is the subject of audit or examina- Examination by Board of Governors. Rep- resentatives of the Division of Examina- tion. The activities, however, are to be tions of the Board of Governors of the distinguished from those by which member Federal Reserve System make an unan- banks are the subject of examination nounced visit to the bank, once each year, this bank. In the latter case (wh for an intensive examination of all opera- under discussion here) the tions, including the work of the resident department of this bank audit staff previously described. The visit bank supervisory auth extends over a period of three to four nation of the banking COMPARATIVE STATEMENT CONDITION

Dec. 31,1958

ASSETS

Gold Certificate Account $1,634,684,463 $1,443,592,901 Redemption Fund for Federal Reserve Notes . 87,707,525 87,749,785 TOTAL GOLD CERTIFICATE RESERVES ...... •..•. 1,722,391,988 1,531,342,686 Federal Reserve Notes of Other Banks . 34,132,800 29,107,120 Other Cash '" . 32,179,897 28,070,601 TOTAL CASH .....•...... 1,788,704,685 1,588,520,407 Discounts and Advances . 750,000 4,368,100 U. S. Government Securities: Bills . 225,602,000 199,221,000 Certificates . 909,674,000 1,650,967,000 Notes '" " . 953,250,000 253,851,000 Bonds . 215,040,000 219,876,000 TOTAL U. S. GOVERNMENT SECURITIES ...... •..•... 2,303,566,000 2,323,915,000 TOTAL LOANS AND SECURITIES . 2,304,316,000 2,328,283,100 Cash Items in Process of Collection . 565,~03,~08 543,120,998 Bank Premises . 9,315,267 9,432,144 Other Assets . 22,453,372 12,769,566

TOT AL ASSETS . $4,690,192,732 $4,482,126,215

LIABILITIES

Federal Reserve Notes $2,570,371,585 $2,571,637,845 Deposits: Member Bank-Reserve Accounts . 1,460,302,533 1,344,044,860 U. S. Treasurer~General Account . 32,803,569 4,656,414 Foreign : . 31,320,000 20,915,000 Other Deposits . 26,294,895 5,053,709 TOTAL DEPOSITS ...... •...... •...... 1,550,720,997 1,374,669,983 Deferred Availability Cash Items . 457,026,300 413,145,265 Other Liabilities . 2,438,680 1,853,247

TOTAL LIABILITIES . 4,580,557,562 4,361,306,340

CAPITAL ACCOUNTS

Capital Paid In . $ 36,265,000 $ 34,246,150 Surplus . 72,530,000 76,642,500 Other Capital Accounts . 840,170 9,931,225 TOTAL LIABILITIES AND CAPITAL ACCOUNTS $4,690,192,732 $4,482,126,215 Contingent Liability on Acceptances Purchased for Foreign Correspondents . s 7,407,000 $ 6,034,200 Industrial Loan Commitments . $ -0- $ 35,000

12 COMPARISON of EARNINGS and XPENSES

1958

Total Current Earnings . $76,455,955 $65,617,595 Net Expenses . 12,746,585 12,615,784 CURRENT NET EARNINGS . $63,709,370 $53,001,811 Additions to Current Net Earnings: Profit on Sales of U. S. Government Securities (Net) . 16,502 13,848 Transferred from Reserves for Contingencies (Net) . 9,083,117 -0- All Other . 4,506 18,656 TOTAL ADDITIONS . 9,104,125 32,504 Deductions from Current Net Earnings: Reserves for Contingencies . -0- 17,393 All Other . 178 558 TOTAL DEDUCTIONS . 178 17,951 Net Additions . 9,103,947 14,553 Net Earnings Before Payments to U. S. Treasury . 72,813,317 53,016,364 Dividends . 2,150,830 1,995,760 Paid U. S. Treasury (Interest on F. R. Notes) . 74,774,987* 45,918,551 Transferred to Surplus . $-4,112,500* $ 5,102,053

* The 1959 payments to the Treasury reflect a conclusion reached by the Board of Gover- nors, after consultation with the Federal Reserve Banks, that the maintenance of a surplus at the level of subscribed capital would be appropriate in the light of present circumstances.

13 DIRECTORS

1960 FEDERAL RESERVE

Chairman ARTHUR B. VAN BUSKIRK Vice President and Governor T. Mellon and Sons Pittsburgh, Pennsylvania

Depuly Chairman JOSEPH H. THOMPSON President The M. A. Hanna Company Cleveland, Ohio

RAY H. ADKINS President The National Bank of Dovel' Dovel', Ohio

FRANCIS H. BEAM Chairman of the Board The National City Bank of Cleveland Cleveland, Ohio

AUBREY J. BROWN Professor of Agricultural Marketing and Head of Department of Agricultural Economics University of Kentucky Lexington, Kentucky

JOSEPH B. HALL President The Kroger Co. Cincinnati, Ohio

CHARLES Z. HARDWICK Executive Vice President The Ohio Oil Company Findlay, Ohio

W. CORDES SNYDER, JR. Chairman of the Board and President Blaw-Knox Company Pittsburgh, Pennsylvania

PAUL A. WARNER President The Oberlin Savings Bank Company Oberlin, Ohio

Member, Fecleral Aclvisory Council REUBEN B. HAYS Chairman of the Board The First National Bank of Cincinnati Cincinnati, Ohio

14 OFFICERS

BANK OF CLEVELAND 1960

WILBUR D. FULTON President DONALD S. THOMPSON First Vice President

DWIGHT L. ALLEN Vice President ROGER R. CLOUSE Vice President and Secretary GEORGE H. EMDE Cashier EDWARD A. FINK Vice President CLYDE HARRELL Vice President L. MERLE HOSTETLER Vice President RICHARD G. JOHNSON Vice President JOHN W. KOSSIN Vice President MARTIN MORRISON Vice President PAUL C. STETZELBERGER Vice President CARL F. EHNINGER General Auditor PHILLIP B. DIDHAM Assistant Vice President JOSEPH M. MILLER Assistant Vice President JOHN E. ORIN Assistant Vice President PAUL BREIDENBACH Counsel ADDISON T. CUTLER Special Economist FRED O. KIEL Senior Economist- Office Manager, Research Department GEORGE T. QUAST Chief Examiner HAROLD H. RENZ Assistant Chief Examiner CHARLES J. BOLTHOUSE Assistant Cashier· CHARLES E. CRAWFORD Assistant Cashier ANNE J. ERSTE Assistant Cashier' ELMER F. FRICEK Assistant Cashier ROBERT G. HOOVER Assistant Cashier JOHN J. Hoy Assistant Cashier HARM EN B. FLINKERS Assistant Secretary

15 BRANCH DIRECTORS and OFFICERS

PITTSBURGH DIRECTORS-1960

Chairman JOHN C. WARNER President Carnegie Institute of Technology Pittsburgh, Pennsylvania

A. BRUCE BOWDEN WILLIAM A. STEELE Vice President President Mellon National Bank and Trust Company Wheeling Steel Corporation Pittsburgh, Pennsylvania Wheeling, West Virginia

SAMUEL R. EVANS IRVING W. WILSON President and Trust Officer Chairman of the Board Windber Trust Company Aluminum Company of America Windber, Pennsylvania Pittsburgh, Pennsylvania

LAWRENCE O. HOTCHKISS President The First National Bank of Mercer OFFICERS Mercer, Pennsylvania JOHN W. KOSSIN Vice President JOHN T. RYAN, JR. ARTHUR G. FOSTER Cashier President PAUL H. DORN Mine Safety Appliances Company Assistant Cashier Pittsburgh, Pennsylvania CHARLES E. HOUPT Assistant Cashier JOHN A. SCHMIDT Assistant Cashier Roy J. STEINBRINK Assistant Cashier

C/NC/NNA TI DIRECTORS-1960

C"a.i,man W. BAY IRVINE Piresident Marietta College Marietta, Ohio

ROGER DRACKETT HOWARD E. WHITAKER President Chairman of the Board The Drackett Company Mead Corporation Cincinnati, Ohio Dayton, Ohio

IVAN JETT THOMAS M. WOLFE Farmer President Georgetown, Kentucky The Athens National Bank Athens, Ohio LERoy M. MILES President First National Bank and Trust Company of Lexington Lexington, Kentucky

FRANK J. VAN LAHR OFFICERS President The Provident Bank RICHARD G. JOHNSON Vice President Cincinnati, Ohio PHIL J. GEERS Cashier JOHN BIERMANN, JR Assistant Cashier GEORGE W. HURST Assistant Cashier WALTER H. MACDONALD .. Assistant Cashier 16 , "