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Minutes for April 15, 1957.
To:
Members of the Board
From:
Office of the Secretary
Attached is a copy of the minutes of the
Board of Governors of the Federal Reserve System on
the above date.
It is not proposed to include a statement
with respect to any of the entries in this set of
minutes in the record of policy actions required to
be maintained pursuant to section 10 of the Federal
Reserve Act.
Should you have any question with regard
to the minutes, it will be appreciated if you will
advise the Secretary's Office. Otherwise, if you
were present at the meeting, please initial in column A below to indicate that you approve the minutes.
If you were not present, please initial in column B
below to indicate that you have seen the minutes.
Chin. Martin
Gov. Szymczak
1/Glav. Vardaman
Gov. Mills
Gov. Robertson
Gov. Balderston
x ('C
Gov. Shepardson
1/ In accordance with Governor Shepardson's memorandum of
March 8, 1957, these minutes are not being sent to Governor
Vardaman for initial.
944
Minutes of actions taken by the Board of Governors of the Federal Reserve System on Monday, April 15,
1957. The Board met in the
Board Roam at 10:00 a.m.
PRESENT: Mr.
Mr.
Mr.
Mr.
Mr.
Martin, Chairman
Szymczak
Mills
Robertson
Shepardson
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Carpenter, Secretary
Sherman, Assistant Secretary
Kenyon, Assistant Secretary
Riefler, Assistant to the Chairman
Thomas, Economic Adviser to the Board
Cherry, Legislative Counsel
Messrs. Young, Garfield, and Robinson,
Miss Burr, and Messrs. Dembitz, Brill,
Eckert, Jones, Miller, Weiner, Allen,
Altmann, Trueblood, and Wood of the
Division of Research and Statistics
Messrs. Marget, Bangs, Furth, Katz, Sammons,
Wood and Reynolds of the Division of
International Finance
Review of economic developments.
The staff of the Division of
International Finance commented on selected international financial
developments.
Taken as a whole, these developments appeared to be more
Clearly on the side on reinforcing inflationary tendencies in this
country than had been the case in recent weeks.
The staff of the Division of Research and Statistics then summarized domestic business and financial developments, the comments reflecting generally a continued sidewise movement at a high level of
economic activity, but .with diverse tendencies in certain particular
sectors.
94
4/15/57
-2At the conclusion of the economic presentation all of the
members of the staff except Messrs. Carpenter, Kenyon, and Cherry
Withdrew from the meeting.
Items which had been circulated to the Board.
The following
items, which had been circulated to the members of the Board and copies
of which are attached to these minutes under the respective item numbers
indicated, were approved unanimously:
Item No.
Letter to the Federal Reserve Bank of New York
1
interposing no objection to leaves of absence
aPproved by the Bank's directors for Messrs.
Glaessner and Schott.
Letter to First Bank and Trust Company, Madison,
2
N. J., Madison, New Jersey, approving the establishment of a branch at 226 Main Street. (For transmittal
through the Federal Reserve Bank of New York.)
Letter to First State Bank, Manchester, Iowa, approving
its application for membership in the Federal Reserve
SYstem. (For transmittal through the Federal Reserve
Bank of Chicago.)
Letter to Lincoln Bank and Trust Company, Louisville,
Kentucky, approving the establishment of a branch at
Fourth and Oak Streets. (For transmittal through
the Federal Reserve Bank of St. Louis.)
Discount rates.
Unanimous approval was given to telegrams to
the following Federal Reserve Banks approving the establishment without
Change, on the dates indicated, of the rates of discount and purchase
in their existing schedules:
Boston
San Francisco
New York
Cleveland
Richmond
April
April
April
April
April
8
10
11
11
11
4/15/57
Atlanta
St. Louis
Minneapolis
Kansas City
Dfalas
April
April
April
April
April
11
11
11
11
11
The meeting then adjourned.
Secretary's Note: Pursuant to
recommendations contained in
memoranda from appropriate individuals concerned, Governor Shepardson today approved on behalf of the
Board the following actions relating
to members of the Board's staff:
Salary increases, effective April 21) 1957
Gloria J. Hile„ Economist, Division of Research and Statistics,
from $5,845 to $61390 per annum.
Ruth Anna Brown, Telegraph Operator, Division of Administrative
Services, from $31670 to $31805 per annum.
A2s22....tfasm2Rf_ntELEREL1911
Paula G. Hauprich, Stenographer, Division of Examinations, effective April 91 1957.
947
Item No. 1
4/15/57
April 15, 1957
Mr. William H. Braun, Jr., Assistant Secretary,
Federal Reserve Bank of New York,
33 Liberty Street,
New York 45, New York.
Dear Mr. Braun:
I am sorry that our response to your letter of January 21,
1957 concerning leaves of absence for Messrs. Philip J. W. Glaessner
and Francis H. Schott of your staff, which were approv
ed by the
Directors of your Bank, has been inadvertently delayed.
It is understood that Mr. Glaessner has been granted a further
two months' leave without pay to June 1 and that his
leave is on the
same terms and conditions as the leave granted in the first instan
ce
for the purpose of permitting him, as a member of the Klein and Saks
Economic and Financial Mission to Chile, to continue to assist in
the Mission's anti-inflationary program.
It is also understood that
Mr. Schott's leave is for a period of six months commencing about
March 1 and that the arrangement is to enable him to go
to Chile as
a replacement for Mr. Glaessner.
The Board of Governors interposes no objection to the arrangements with respect to Messrs. Glaessner and Schott as descri
bed in
your letter.
Sincerely yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
Item No. 2
4/15/57
April 15, 1957
Board of Directors,
First Bank and Trust Company, Madison, N. J.,
Madison, New Jersey.
Gentlemen:
Pursuant to your request submitted through the
Federal Reserve Bank of New York, the Board of Governors
of the Federal Reserve System approves the establishment
of a branch by First Bank and Trust Company, Madison,
N. J., Madison, New Jersey, at 226 Main Street in the city
of Madison, New Jersey, provided the branch is established
vithin one year from the date of this letter, and the
aPproval given by the State authorities is effective as of
the date it is established.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Assistant Secretary.
949
Item No. 3
4/15/57
April 15, 1957
Board of Directors,
First State Bank,
Manchester, Iowa.
Gentlemen:
The Board of Governors of the Federal Reserve System approves
the application of First State Bank, Manchester, Iowa, for stock in the
Federal Reserve Bank of Chicago, subject to the numbered conditions
hereinafter set forth:
1.
Such bank at all times shall conduct its business
and exercise its powers with due regard to the
safety of its depositors, and, except with the
permission of the Board of Governors of the Federal
Reserve System, such bank shall not cause or permit
any change to be made in the general character of
its business or in the scope of the corporate
powers exercised by it at the time of admission
to membership.
2.
The net capital and surplus funds of such bank
shall be adequate in relation to the character
and condition of its assets and to its deposit
liabilities and other corporate responsibilities.
In connection with the foregoing conditions of membership,
Particular attention is called to the provisions of the Board's
Regulation H, as amended effective September 1, 1952, regarding membership of State banking institutions in the Federal Reserve System, with
especial reference to Section 7 thereof. A copy of the regulation is
e
nclosed.
It appears that the bank is authorized to exercise trust powers
ItInder its charter, but that it does not engage in such activities. Atention is invited to the fact that if the bank desires to exercise trust
P
t°wers it will be necessary, under condition of membership numbered 1,
.2 obtain the permission of the Board of Governors before exercising
If at any time a change in or amendment to the bank's charter
is made,
the bank should advise the Federal Reserve Bank, furnishing
!?Pies of any documents involved, in order that it may be determined
wnether such change affects in any way the bank's status as a member
of the Federal Reserve System.
950
-2Acceptance of the conditions of membership contained in this
letter should be evidenced by a resolution adopted by the Board of
Directors and spread upon its minutes, and a certified copy of such
resolution should be filed with the Federal Reserve Bank. Arrangements will thereupon be made to accept payment for an appropriate
amount of Federal Reserve Bank stock, to accept the deposit of the
required reserve balance, and to issue the appropriate amount of
Federal Reserve Bank stock to the bank.
The time within which admission to membership in the Federal
Reserve System in the manner described may be accomplished is limited
to 30 days from the date of this letter, unless the bank applies to
the Board and obtains an extension of time. When the Board is advised
that all of the requirements have been complied with and that the appropriate amount of Federal Reserve Bank stock has been issued to the
bank, the Board will forward to the bank a formal certificate of member
,
Ship in the Federal Reserve System.
The Board of Governors sincerely hopes that you will find
membership in the System beneficial and your relations with the Reserve
Bank pleasant. The officers of the Federal Reserve Bank will be glad
to assist you in establishing your relationships with the Federal
Reserve System and at any time to discuss with representatives of your
bank means for making the services of the System most useful to you.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Assistant Secretary.
Enclosure.
Item No.
4/15/57
April
15, 1957
Board of Directors,
Lincoln Bank and Trust Company,
Louisville, Kentucky.
Gentlemen:
Pursuant to your request submitted through
the Federal Reserve Bank of St. Louis, the Board of
Governors approves the establishment of a branch at
the southwest corner of Fourth and Oak Streets,
Louisville, Kentucky, by Lincoln Bank and Trust
Company, Louisville, Kentucky, provided the branch
is established within eight months from the date of
this letter and that formal approval of the Commisof Banking of the State of Kentucky is effective at the time the branch is established.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Assistant Secretary.
4
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