The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
6D9 Minutes for April 18, 1962 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, please initial below. If you were present at the meeting, your initials will indicate approval of the minutes. If You were not present, your initials will indicate °IllY that you have seen the minutes. Chin. Martin Gov. Mills Gov. Robertson Gov. Baldersto Gov. Shepardson Gov. King Gov. Mitchell c;85 Minutes of the Board of Governors of the Federal Reserve System on Wednesday, April 18, 1962. The Board met in the Board Roam at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Balderston, Vice Chairman Mills Robertson Shepardson Mitchell Sherman, Secretary Kenyon, Assistant Secretary Molony, Assistant to the Board Fauver, Assistant to the Board Cardon, Legislative Counsel Farrell, Director, Division of Bank Operations Mr. Johnson, Director, Division of Personnel Administration Mr. Hexter, Assistant General Counsel Mr. O'Connell, Assistant General Counsel Mr. Koch, Adviser, Division of Research and Statistics Mr. Conkling, Assistant Director, Division of Bank Operations Mr. Goodman, Assistant Director, Division of Examinations Mr. Benner, Assistant Director, Division of Examinations Mr. Leavitt, Assistant Director, Division of Examinations Mrs. Semia, Technical Assistant, Office of the Secretary Miss Stockwell, Economist, Division of Research and Statistics Mr, Moss, Economist, Division of Research and Statistics Mr. Mr. Mr. Mr. Mr. Mr. Discount rates, The establishment without change by the -‘eciez*Ell Reserve Banks of Boston and Atlanta on April 16, 1962, of the "ktes on discounts and advances in their existing schedules was kliDiDreszl unanimously, with the understanding that appropriate advice 1(31t1d• be sent to those Banks. 4/18/62 -2Circulated or distributed items. The following items, which had been circulated or distributed to the Board and copies of which are attached to these minutes under the respective item numbers indicated, were approved unanimously: Item No. Letters to (1) Manufacturers Hanover Inter141ational Banking Corporation and (2) Manufac: ,`"Iirers Hanover International Finance Corporation, uota of New York, New York, interposing no °biection to the purchase by each corporation °f $250,000 principal amount of bankers acceptances 'Jaz the funds paid by Manufacturers Hanover Trust °mPalaY for capital stock of the corporations. 1-2 Letter to Crawford County Trust Company, Meadville, 4 !,!IlsYlvanial waiving the requirement of six months' 14"lee of withdrawal from membership in the Federal '‘eaerve System. 3 11:etter to the Federal Deposit Insurance Corporation )3: arding the application of Beloit Savings Bank, 1; )it, Wisconsin, for continuation of deposit i'attrance after withdrawal from membership in the ederal Reserve System. 14. Let theter to Security State Bank, Algona, Iowa, waiving r, requirement of six months' notice of withdrawal membership in the Federal Reserve System. Let theter to Farmers State Bank, Eustis, Nebraska, waiving tr, requirement of six months' notice of withdrawal "411 membership in the Federal Reserve System. Lette Tex r to East Texas Bank and Trust Company, Longview, or as) vaiving the requirement of six months' notice s vithdrawal from membership in the Federal Reserve Ystem. Letter to vai West Texas State Bank, Snyder, Texas, 144 1714g the requirement of six months' notice of Ahd : r wal from membership in the Federal Reserve system 5 6 7 8 4/18/62 -3Item No. Letter to Bassett National Bank of El Paso, El Paso, Texas, granting permission to maintain reduced reserves. 9 Letter to the Federal Reserve Bank of Atlanta approving 'the appointment of W. B. Morgan as Alternate Assistant Federal Reserve Agent0 10 etter to the Federal Reserve Bank of St. Louis approving Ihe retention in active service of Dr. Arthur C. Brooks as the Bank's physician for one additional year. 11 u tter to Bankers Trust Company, New York, New York, approving establishment of a branch at 31st Avenue and 77th Street, 'Jackson Heights, Borough of Queens. 12 L!tter to Industrial State Bank of Kalamazoo, Kalamazoo, o ligan, approving the establishment of a branch at 3122 .L15.4and Drive. 13 Lpetter to Citizens Commercial Trust and Savings Bank of : ni t„ s, aclena, Pasadena, California, approving the establishOf a branch on Colorado Boulevard between Catalina Wilson Avenues. 14 tetter to 0 the Bureau of the Budget commenting favorably proposal by the Department of Commerce to amend section or title 13, United States Code, to provide for earlier -111g of the economic censuses. 15 131 tette al) r to County National Bank of Mineola, Mineola, New York, 1)1*.c3ving its application for limited fiduciary powers. 16 Messrs. Johnson, Goodman, and Moss then withdrew from the Application of United California Bank (Item No. 17). There 114a been circulated a draft of letter to United California Bank, LOa A 'tugeles, California, approving its application for establishment of ttbz, anch in Santa Rosa, Sonoma County, California. V18/62 .J. At Governor Robertson's request, Mr. Leavitt reviewed the banking situation in Sonoma County and the facts that had been weighed by the Division of Examinations in reaching its recommendation rcIr approval of the application. After discussion, the letter to United California Bank was aPProved, Governor Robertson dissenting on the ground that there was 40 need for the branch in the community, the existing facilities being sufficient to provide ample service and competition. A copy of the letter is attached as Item No. 17. Request of Department of Justice (Item No. 18). There had been circulated a draft of letter responding favorably to a request 'de in a letter from the Department of Justice dated March 30, 1962, in connection with the pending case of United States v. Bank Stock C°rPoration of Milwaukee that representatives of the Department's 4r1titrust Division be permitted to examine and copy reports of condition and of earnings and dividends for the years 1956 through 1961 by certain State member banks in Milwaukee County. Mr. O'Connell commented that the Department's request was 4.ar to others it had made. In one case the Board responded to lequest for reports of certain banks in Lexington, Kentucky, by ' 1'14'11j-skiing the reports and asking that the Board be notified if the ber,4-14-craent intended to make schedules from them to be used in court. In another case, when the Department asked for call reports for use in c onnection with an action against Continental Illinois National Bank -5- 4/18/62 andTrust Company of Chicago, the Board's staff cooperated with the staff of the Federal Deposit Insurance Corporation in preparing schedules containing summary figures that did not identify any institu. timl, and these were furnished to the Department of Justice In the Present request, the Department wanted the individual reports of condition 414 of earnings and dividends, from which its staff would prepare aggregate schedules for use in evidence. The Department preferred that its own staff prepare the schedules in order that the figures would be presented in the way the Department thought would best serve its purposes. The pePartment had given assurance that the schedules would be prepared in sUch a way that no individual institution's figures could be identified. ing Governor Mills said that he had some qualms about respond t° the Department's request in the manner proposed. Although the ipel3artment had given assurances that it would not introduce earnings t4tements of individual banks in evidence, still the Department would be -44 Possession of unpublished information in a situation in which t Ilas involved in an adversary capacity. Although he did not have the alle degree of concern here that he had in regard to requests for access to ihrormation bearing upon a bank's customers, earnings reports of except it4ividua1 institutions were not made available to the public to the extent that a bank itself published its figures. He would not the same reservations if aggregate figures were made available t° the Department of Justice. 4/18/62 -6Governor Mills also stated that he was concerned from the standpoint that the Board would be making available earnings reports Of banks that were not parties to the pending litigation. The DePartment of Justice had raised an issue as to the concentration of ballking in Milwaukee County through the existence of the three bank 11°1ding companies operating in the County and the information now Pli°Posed to be supplied, unless it was in aggregates, would disclose information relating to the subsidiary banks of the two bank holding c°111Panies not involved in the suit and could be used to their disadvantage. Governor Shepardson asked if the reports could be given with the , .ames of the banks deleted, in response to which the staff indicated " that anYone familiar with the circumstances in Milwaukee County could Ilevertheless deduce the identity of the respective banks. After further discussion, Governor Robertson stated that he 11°111d. aPProve granting the request from the Department of Justice because he thought a Government agency, and especially the chief law erlt°reement agency, was entitled to such information, Further, there '44a everY reason to feel that the confidentiality of the individual l'ePesrta would be respected by the Department. Similar views were exIiressed by Governor Mitchell. Governor Shepardson commented that it was not clear to LAY the Board's staff could not tabulate and assemble the inforOn. It seemed to him that the Department should be able to indicate the , c3rm in which it would like to have the information presented, and ' 4/18/62 -7- the Board's staff could then prepare tables without giving the Department the underlying individual reports. Response was made that the Department specifically wanted the individual reports; its request in the Chicago case had also been in those terms, but it had agreed to use the summary tables when it learned that they had been prepared. Moreover, in the present case it had been learned that in response to a similar request from Justice the Comptroller of the Currency intended to furnish individual reports rl'om national banks. Governor Balderston stated that, like Governor Shepardson, he 14341d prefer that the information be supplied in the form of aggregates. 11°14aver, unless s11 of the supervisory agencies cooperated on that 154818, it did not seem practicable to consider that possibility. Thereupon, the letter to the Department of Justice was 4131"oved, Governor Mills dissenting. 4 Item A copy of the letter is attached No. 18. Mr. O'Connell withdrew from the meeting at this point. Report on competitive factors (Harrisburg-Carlisle, Pennsylvania). eie had been distributed a draft of report to the Comptroller of the neY on the competitive factors involved in the proposed merger of ' The I, fl arrisburg National Bank and Trust Company, Harrisburg, Pennsylvania, 6444 Carlisle Deposit Bank and Trust Company, Carlisle, Pennsylvania. The conclusion of the report, as drafted, read as follows: 4/18/62 -8- While merger of The Harrisburg National Bank and Trust Company and Carlisle Deposit Bank and Trust Company would eliminate the moderate amount of competition existing between the two institutions, it would probably intensify competition in the Carlisle area. It does not appear that the proposal would adversely affect smaller banks in the area. Governor Robertson expressed the view that, with only two relatively Small independent banks in Carlisle, Pennsylvania, a merger of one of them (Carlisle Deposit Bank and Trust Company) with 8. large out-of-town bank was likely to have an adverse effect on the Other (Farmers Trust Company of Carlisle). There ensued a discussion of the need for more factual information regarding the experience of remaining small banks in communities that large banks had entered through merger, and the hope was expressed that such information could be assembled in order to aid the Board in 4151/raising such situations. In this connection, Mr. Hexter observed that lack of adequate irlf°rmation in this respect could lead to inconsistencies. In the eseut case the report, as drafted, followed the reasoning that "trance of the large bank into the community would intensify competition. Rcil'lever, the application of Marine Midland Trust Company of Southern York to merge with First National Bank and Trust Company-, Ithaca, had been denied by the Board in March 1961 largely on the €1°111101 that the merger would adversely affect the other bank in Ithaca* 14 e, -,nriection with that case the New York Reserve Bank made a survey thai. . " indicated that independent banks had not been adversely affected t he competition of Marine Midland subsidiary banks in their respective 4/18/62 -9- communities. However, a more comprehensive study might reveal situations Where independent banks had suffered because of the entrance of a large bank. During further discussion, Governor Mitchell referred to the Portions of the conclusion indicating that the proposed merger would Probably intensify competition in the Carlisle area and that it would 4c)t aPPear to affect smaller banks in the area adversely. Since these statements involved a degree of speculation, he suggested that they be deleted. Such changes in the wording of the conclusion being agreed 11P°11, the report was approved unanimously for transmittal to the Ccmptroller of the Currency, subject to a deletion suggested by Governor Mills in the body of the report. The conclusion in the report, as aPProved, read as follows: The merger of The Harrisburg National Bank and Trust Company and Carlisle Deposit Bank and Trust Company would eliminate the moderate amount of competition existing between the two institutions. Hearings on measurement of productivity. Governor Balderston Ported that the Board had been invited informally to have a member or its staff testify, along with other technicians, in hearings that the Subcommittee on Economic Statistics of the Joint Economic Committee ecl3ected to hold on the measurement of productive capacity. Mr. Noyes 11451 auggested that Mr. Frank de Leeuw, of the Board's research staff, be authorized to participate in the hearings. 4/18/62 -10Governor Robertson asked if the hearings were understood to involve merely technical discussions of methodology, to which Mr. Koch responded in the affirmative. Governor Mills inquired whether there seemed any likelihood that conflicting objectives or points of view might be drawn into the hearings such manner that the Board might appear to be taking a position °PPosed to that of other Government institutions. Mr. Koch responded that Mr. de Leeuw was well qualified to cliscuss the development of productivity measurements, a field in which the Board probably had done as much work as any other organization. If authorized to testify, Mr. de Leeuw would be cautioned to avoid c)ing beyond the technical area. After further discussion, it was agreed that the Subcommittee Should be advised of the designation of Mr. de Leeuw to participate In the Subcommittee's hearings. Report on S. 3130. There had been distributed a memorandum 4ted April 16, 1962, from Mr. Noyes, regarding a request from °4411111an Robertson of the Senate Committee on Banking and Currency a report on S. 3130, a bill "To authorize the Secretary of Cornflier e to purchase industrial and commercial evidences of indebtedness to Promote certain industrial and commercial loans in redevelopment by lending institutions in order to help such areas plan and ahee their economic redevelopment. .. It was stated in the 4/18/62 -11- memorandu111 that S. 3130 was in effect a substitute for S. 1212, to 14hich the Board had raised substantial objections in its report of julY 31, 1961. The underlying purpose of the present bill, as of the earlier bill, was to assist lenders in redevelopment areas whose liquidity and lending ability had been reduced by the large volume of 1°4g-term industrial loans in their portfolios. The earlier bill had provided for establishment of a new Government corporation to provide a secondary market for industrial m°rtgages, The Board's report on that bill, and Chairman Martin's later letter of December 11, 1961, to Senator Clark, who had introclUeed the bill, pointed out that efforts to develop such a secondary Market were not likely to be successful, since industrial mortgages alie neither sufficiently standardized nor sufficiently common as a elng instrument to lend themselves to a secondary market clPeration. Moreover, it was questioned whether purchase of such n"gages by the Government would result in an increased supply of 111'11/ate) long-term credit for industrial expansion, since there was 11() requirement that lenders reinvest the proceeds in similar loans. The new bill made no mention of establishing a secondary • aa'liket in industrial mortgages. It authorized purchase of a wider k. rejae. of loans than did S. 1212, and was more specific with respect tO th e conditions under which the Government would purchase such and the use to which lenders must put the proceeds. Some of 4/18/62 -12- the 0,— ...muKes from the earlier bill seemed designed to assure that Private funds would be available for participation in financing Projects assisted under the Area Redevelopment Act as well as to flake the provisions of the present bill consistent with those of the Act, The new bill, S. 3130, authorized the Secretary of Commerce, Under certain conditions, to purchase "evidences of indebtedness" *Qua lending institutions in redevelopment areas. An "evidence of indebtedness" was defined as "a bond, debenture, note, or other contract for the payment of money, or a participation therein, which, 841°11g other things (1) evidences a loan to aid in financing any project Ilithin a redevelopment area for the acquisition or development of 14nd or facilities ..., or both, for industrial or commercial usage, • ; (2) is secured by a mortgage, deed of trust, or similar covering land or facilities . • • y or both, .. ; and so secured as reasonably to assure repayment." A loan purchased by the Secretary could not amount to more t444 65 per cent of the fair value of the property, and must yield at least the rate then applicable in section 6(b)(8) of the Area Redev e-Lopment Act, but bear interest of no more than 6 per cent on the 1141444d balance. In order to meet these interest rate requirements, the , Seere "trY could purchase a loan for less than, but not more than, its .J.ce value. The new bill also authorized the Secretary to dispose c)t the loans he purchased for "cash, credit or such consideration as he • 4/18/62 4 4 -13- 8116.11 deem reasonable" but there was no indication that his purchases and sales were intended to result in the development of a secondary market. An important restriction in S. 3130 was that any lender who 801d an evidence of indebtedness to the Secretary must invest the Pl'oceeds either in a project to be assisted under the Area Redevelopment Act or in an industrial or commercial project that "does not invave the relocation of an establishment from one area to another" alld that "is reasonably calculated to provide more than a temporary elleviation of unemployment or underemployment within the redevelop' area." The Secretary could grant exemptions, in cases of demonstrated need, but only up to 25 per cent of the proceeds. Since, under S. 3130, private lenders in redevelopment areas e°111d sell existing loans to the Government, invest the proceeds in l 4-ar loans, sell those to the Government, and so on, the net effect of the bill might be to make such lenders simply conduits, with the G°vernment eventually holding a rather large volume of secured industrial ancl CoMmercial loans to businesses in redevelopment areas. While that 'night not be an ideal situation, the bill appeared to represent a realistic tli ach and to set up adequate safeguards against abuse of the facilities r°vided. ' Attached to the memorandum was a draft of letter to Chairman Robertson that noted that S. 3130 was similar to, and was apparently off.— 'red as a substitute for, S. 1212 introduced in the first session $ 4/18/62 or the 87th Congress, and commented that it appeared to the Board that S. 3130 was in many ways an improvement over the earlier bill ancl would operate more effectively to accomplish its purposes. The concluding paragraph of the draft letter stated that the Board had no itIdgment as to whether legislation of this type was necessary in order to assure the maximum effectiveness of other Government programs already 840Pted to provide assistance to redevelopment areas, but if it was, S 3130 seemed a practical and straightforward approach. ' The Board's consideration of the requested report included an extended discussion of the mechanism that would be set up under 8. 3130, during which staff comments brought out that certain features of S. 1212 to which the Board specifically objected had been eliminated flic)m the present proposal. Thus, such comments as the Board might wish to exPress on the current bill would have to be on a different basis. UP314 consideration by the Board of what position should be taken, one illenther, Governor Mitchell, expressed the opinion that the proposal deserved support/ much along the lines indicated in the draft letter. °4 the other hand, Governor Shepardson expressed doubt that legislation or the kind proposed in the bill would contribute substantially to the erfectiveness of other Government programs already adopted to provide stance to redevelopment areas. An intermediate view, expressed by °tiler members of the Board, suggested that the question whether alation of this sort was necessary in order to maximize the erreetiveness of other assistance programs would appear to be one for 31On by the Congress in its discretion. V18/62 Several suggestions were made for changes in the wording of the letter proposed to be sent to Chairman Robertson, reflecting the leanings of the respective Board members. In view of those suggestions, it liss agreed that the staff would prepare alternative draft letters, 04 the basis of which the Board would give further consideration to the tatter. All of the staff members then withdrew except Messrs. Sherman, K"Ziron, Fauver, Farrell, Conkling, and Leavitt and Mrs. Semia. Midyear reports of income and dividends (Item No. 19). There had been distributed a memorandum dated April 12, 1962, in which Conkling reported that the Office of the Comptroller of the rencY had informed him by telephone that the Comptroller had Cill ' 4seided to eliminate the midyear reports of income and dividends rt°14 national banks, and that the Office was drafting a letter of ednee to national banks. The memorandum mentioned several earlier °ceasions when suggestions had been made to eliminate the midyear ziel/c/rts of income and dividends, and noted especially that on 414€4st 22, 1956, in response to a Budget Bureau inquiry, the Board hall stated that it would be willing to consider an annual reporting, 151'"Ided. quarterly or semiannual data could be Obtained for statistical Pktrio ses on a condensed form either from all member banks or from an edecNate sample of such banks. The Board had also said that an alterliEttive might be to obtain the report in the present or similar form from 4/18/62 the 300 to 400 largest banks and from a sample of other member banks. The memorandum also noted that the Federal Deposit Insurance e°rPoration does not require midyear reports of income and dividends *am insured nonmember banks. The conclusion reached by the staff was that, in the circumstarices, it would not seem worth while for the Board to obtain midyear reP°1ts from State member banks. However, the Board might wish to consider the advisability of obtaining midyear reports, on a simplified r°1111) from a limited sample of member banks. After discussion, it was the consensus of the Board that the 8ituation created by the Comptroller's decision should be accepted, 1114 that the staff should explore the desirability of a sample survey. ItcecIrdinglY, the staff was so instructed. It was understood that the Petierea. Reserve Banks would be informed that the usual reports of 0 and dividends would not be collected from State member banks 144/1* tot' the six months ending June 30, 1962, and that the views of the Re8erve Banks on the merits of a sample survey would be requested. %IMF A Of the letter subsequently sent to the Reserve Banks is attached Eta 'tern Nn In The meeting then adjourned. Secretary's Notes: On April 17, 1962, Governor Shepardson approved on behalf of the Board a letter to the Federal Reserve 01 4/18/62 -17Bank of San Francisco (attached Item No. 20) approving the appointment of Thomas Everest Rockwell as assistant examiner. Governor Shepardson today approved on behalf of the Board the request contained in a memorandum from the Division of Research and Statistics dated April 16, 1962, that two additional summer research assistant positions be established in that Division, making a total of five, with the understanding that no budgetary overexpenditure would result. Secreary_, .1402 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 1 4/18/62 WASHINGTON 25. D. C. ADDRESS • orriciAL CORRESPONDENCE TO THE BOARD April 181 1962 Mr. S. van den Heuvel, Secretary and Treasurer, Manufacturers Hanover International nking Corporation, `i4i. Wall Street, New York 15, New York. Dear Mr. van den Heuvel: This will acknowledge your letter of March 28, 196-) P advising that Manufacturers Hanover International 11king Corporation began business on March 13, 1962, date of receipt of the Board's letter of March 9, 19621 enclosing a final permit of the Board of Governors tnting authority to commence business as a corporation jganized under the provisions of Section 25(a) of the A.ederal Reserve Act. r The Board has noted, without objection, that Y°I.r Corporation purchased on March 6, 1962, $250,000 InciPal amount of bankers acceptances from the funds by Manufacturers Hanover Trust Company for capital ' f3ck of your Corporation. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. tra BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item NO. 2 4/18/62 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD April 18) 1962 Mr. S. van den Heuvel, Secretary and Treasurer, Manufacturers Hanover International Finance Corporation, 44 Wall Street, New York 15, New York. Dear Mr. van den Heuvel: This will acknowledge your letter of March 28, 1962, advising that Manufacturers Hanover International Finance Corporation began business on March 13, 1962, the date of receipt of the Board's letter of March 9, 1962, enclosing a final permit of the Board of Governors granting authority to commence business as a corporation organized under the provisions of Section 25(a) of the Federal Reserve Act. The Board has noted, without objection, that Your Corporation purchased on March 6, 1962, $250,000 Principal amount of bankers acceptances from the funds Paid by Manufacturers Hanover Trust Company for capital stock of your Corporation. Very truly yours, (Signed) Kenneth A, Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS OF THE s} Item No. 3 FEDERAL RESERVE SYSTEM 4/18/62 WASHINGTON 25, D. C. 4 0 0 ADDRESS 4 \ 44tt04 :**41 444*** orriciAL CORRESPONDENCE TO THE BOARD April 18) 1962 Board of Directors, Crawford County Trust Company, Meadville, Pennsylvania. G entlemen: The Federal Reserve Bank of Cleveland has forwarded ?() the Board of Governors your letter dated March 15) 1962) -ogether with the accompanying resolution signifying your Intention to withdraw from membership in the Federal Reserve 6ystem and requesting waiver of the six months' notice of such withdrawal * GoIn accordance with your request) the Board of vernors waives the requirement of six months' notice of thdrawal. Upon surrender to the Federal Reserve Bank of , ith ,4-eveland of the Federal Reserve Bank stock issued to your Institution) such stock will be canceled and appropriate refund 11 be made thereon. Under the provisions of Section 208.10(c) the Board's Regulation H) your institution may accomplish rElirmination of its membership at any time within eight months Om the date the notice of intention to withdraw from member8114 was given n It is requested that the certificate of membership be returned to the Federal Reserve Bank of Cleveland. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael) Assistant Secretary* BOARD OF GOVERNORS OF THE Item No. 4 FEDERAL RESERVE SYSTEM 4/18/62 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD April 18, 1962 The Honorable Erie Cocke, Sr., Chairman, Federal Deposit Insurance Corporation, Washington 25, D. C. Dear Mr. Cocke: Reference is made to your letter of March 27, 1962, concerning the application of Beloit Savings Bank, Beloit, Wisconsin, for continuance of deposit insurance after withdrawal from membership in the Federal Reserve System. No corrective programs that the Board of Governors believes should be incorporated as conditions to the continuance of deposit insurance have been urged Illoon or agreed to by the bank. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. j 0 BOARD OF GOVERNORS OF THE Item No. 5 FEDERAL RESERVE SYSTEM 4/18/62 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPON IrENDC TO THE BOARD April 18, 1962 toard of Directors, Security State Bank, Algona, Iowa. Ge ntlemen: The Federal Reserve Bank of Chicago has forwarded to the Board of Governors your letter dated March 21, 1962, to— pother with the accompanying resolution signifying your intention withdraw from membership in the Federal Reserve System and 'Nuesting waiver of the six months' notice of such withdrawal. In accordance with your request, the Board of Governors vaiv , es the requirement of six months' notice of withdrawal. Upon render to the Federal Reserve Bank of Chicago of the Federal Bank stock issued to your institution, such stock will be pr—Leeled and appropriate refund will be made thereon. Under the i2vieione of Section 10(c) of the Board's Regulation H, your tVitution may accomplish termination of its membership at any t 6 within eight months from the date the notice of intention ° withdraw from membership was given. i It is requested that the certificate of membership be urfled to the Federal Reserve Bank of Chicago. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 1 0" BOARD OF GOVERNORS OF THE Item No. FEDERAL RESERVE SYSTEM 6 4/18/62 WASHINGTON 25, ID. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD April 18, 1962 Board of Directors, Farmers State Bank, Eustis, Nebraska. Ge ttlemen: The Federal Reserve Bank of Kansas City has forwarded to the 11._ 4Juard of Governors your letter dated January 22, 1962, together with the draw accompanying resolution signifying your intention to withfrom membership in the Federal Reserve System and requesting ,4 0 ‘ --,Arer of the aix months' notice of such withdrawal. In accordance with your request, the Board of Governors the W4ives requirement of six months' notice of withdrawal. Upon ;Irender to the Federal Reserve Bank of Kansas City of the Federal 7e Bank stock issued to your institution, such stock will be ea:`, pro-e-Led and appropriate refund will be made thereon. Under the tisions of Section 208.10(c) of the Board's Regulation H, your illeli with tution may accomplish termination of its membership at any time eight months from the date the notice of intention to with-w from membership was given. It is requested that the certificate of membership be retu Illed to the Federal Reserve Bank of Kansas City. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. igo8 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 7 4/18/62 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD April 18, 1962 Board of Directors, East Texas Bank and Trust Company, Longview, Texas. Ge ntlemen: The Federal Reserve Bank of Dallas has forwarded to the Qrd of Governors President Sartains' letter dated March 22, 1962, : i441 a coPy of the resolution of your board of directors dated 81,4ch 13, 1962, signifying your intention to withdraw from memberin the Federal Reserve System and requesting waiver of the months' notice of such withdrawal. In accordance with your request, the Board of Governors the requirement of six months' notice of withdrawal. Upon illrrender to the Federal Reserve Bank of Dallas of the Federal c2erve Bank stock issued to your institution, such stock will be 1);4'eeled and appropriate refund will be made thereon. Under the ) 1,"iaions of section 10(c) of the Board's Regulation H, your t'gtitution may accomplish termination of its membership at any vitZ within eight months from the date the notice of intention to draw from membership was given. liaiv n e8 return It is requested that the certificate of membership be ed to the Federal Reserve Bank of Dallas. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. 1409 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 8 4/18/62 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD ,8 `I'S6Z Board of Directors, West Texas State Bank, Snyder, Texas, G entlemen: The Federal Reserve Bank of Dallas has forwarded to the '°ard of Governors your letter dated March 19, 1962, together with 1.1e accompanying resolution dated March 8, 1962, signifying your l tention to withdraw from membership in the Federal Reserve System and requesting waiver of the six months' notice of such withdrawal. In accordance with your request, the Board of Governors waives the requirement of six months' notice of withdrawal. Upon '„'render to the Federal Reserve Bank of Dallas of the Federal "serve Bank stock issued to your institution, such stock will be canceled and appropriate refund will be made thereon. Under the rcvieions of section 10(c) of the Board's Regulation H, your stitution may accomplish termination of its membership at any jrne within eight months from the date the notice of intention to Withdraw from membership was given. I j It is requested that the certificate of membership be returned to the Federal Reserve Bank of Dallas. Very truly yours, Elizabeth L. Carmichael, Assistant Secretary. 1410 4,611,1**4* .Y4 OfitOk BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM 0' Item No. 9 4A8/62 WASHINGTON 25. D. C. ADDRESS OFFICIAL. CORRESPONDENCE TO THE BOARD St .* 4444,1,4.- April 181 1962 1$0,!tril -- 0 Directors, baSettNational Bank of El Paso, ?e.s0) Texas. Qtrtlemert. Ileeter, Pursuant to your request submitted through the Federal -te Bank of Dallas, the Board of Governors, acting under the proto 118 of Section 19 of the Federal Reserve Act, grants permission 40411tile Bassett National Bank of El Paso to maintain the same reserves ()10,78414.15t deposits as are required to be maintained by banks located (late"! Of central reserve and reserve cities, effective as of the °Pens for business. Is s Your attention is called to the fact that such permission UbJect to revocation by the Board of Governors. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. 14 BOARD OF GOVERNORS UF THE FEDERAL RESERVE SYSTEM Item No. 10 4/ 18/62 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD April 18, 1962 Feci_t_)ack Tarver, pez_ral Reserve Agent, ' 4 4 1.41 Reserve Bank Atla Atlan ta, nta 3, Georgia. Dear "r. Tarver. 2In accordance with the request contained in your letter of APril Xr. w. 3 1962, the Board of Governors approves the appointment of , B• Morgan as Alternate Assistant Federal Reserve Agent at the Peder gJ- Reserve Bank of Atlanta to succeed Mr. D. E. Plaster. This approval is given with the understanding that Mr. Morgan wiaa be , ' , oirern; solely responsible to the Federal Reserve Agent and the Board of ab:'s for the proper performance of his duties, except that, during that "lence or disability of the Federal Reserve Agent or a vacancy in AEent°rfice, his responsibility will be to the Assistant Federal Reserve and the Board of Governors. 9 „When not engaged in the performance of his duties as Alternate ,.st ederai."4 Federal Reserve Agent, Mr. Morgan may, with the approval of the Reserve Agent and the President, perform such work for the Bank ' ellb qeserve-- Zt t. e inconsistent with his duties as Alternate Assistant Federal It 4R4P°rtarlee ofwill his el ' Ife Agent and (l'e"ti°rIs of the be appreciated if Mr. Morgan is fully informed of the responsibilities as a member of the staff of the Federal the need for maintenance of independence from the responsibilitieso Bank in the discharge of these kfice tijt is assumed that Mr. Morgan will execute the usual Oath of Governors along with the 11°14.tiL;74LIen will be forwarded to the Board of appointment. Xl of the effective date of his Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 11 4/1 8 / 62 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONVENCC TO THE BOARD April 18, 1962 Mr. Darryl R. Francis, First Vice President, Federal Reserve Bank of St. Louis, St. LOIAS 66, Missouri. Dear Mr. Francis: The Board of Governors approves the retention in active service of Dr. Arthur C. Brooks at the Federal Reserve Bank of St. Louis beyond the normal service r etirement date for one additional year beginning August 1, 1962, as requested in your letter of March 30, 1962. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. 1413 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 12 4/18/62 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD April 18, 1962 Board of Directors, Bankers Trust Company, New York, New York. : Gent lemen The Board of Governors of the Federal Reserve SYst em approves the establishment by Bankers Trust Company, m .,14 York, New York, of a branch at the northeast corner of Avenue and ?7th Street in Jackson Heights, Borough of _ueene, New York, New York, provided that the branch is ustablished within one year from the date of this letter. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 13 4/18/62 WASHINGTON 25. D. C. ADDRESS DiFICIAL CORRESPONDENCE TO THE BOARD April 18, 1962 Board of Directors, Industrial State Bank of Kalamazoo, Kalamazoo, Michigan. Gentlemen: The Board of Governors of the Federal Reserve System approves the establishn,ent of a branch at 3122 Oakland Drive, Kalamazoo, Michigan, by Industrial State Bank of Kalamazoo, provided the branch is established within nine months from the date of this letter. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. * BOARD OF GOVERNORS 44***4,i 4 OF THE FEDERAL RESERVE SYSTEM Item No. 14 4/18/62 WASHINGTON 25, D. C. AOORESS orrictAL CORRESPONDENCE TO THE BOARD April 181 1962 Board of Directors, Citizens Commercial Trustand Savings Bank of Pasadena, Pasadena, California. Gentlemen: The Board of Governors of the Federal Reserve Sys+ -em approves the establishment of an in-town branch LT Citizens Commercial Trust and 6avIngs Bank of Pasadena, on the south side of Colorado Boulevard between Catalina and Wilson Avenues, provided the branch is established *within one year from the date of this letter. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 15 4/18/62 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD April 18, 1962 Mr. Phillip S. Hughes, Assistant Director, Legislative Reference, Bureau of the Budget, Washington 25, D. C. Dear Mr. Hughes: This is in reply to your legislative referral ilemorandum of April 2, 1962 regarding a proposal by the lpart1ent of Commerce to amend section 131 of title 13, united States Code, to provide for earlier taking of the economic censuses. The Board favors taking the Censuses of manufac turers, minerals, and other businesses one year earlier than originally scheduled, starting in 1968. The need to avcid serious overlapping of the massive data processing :Perations in these censuses with those of the Censuses of ,griculture, population, and housing seems clear. The shift ' 1(3 a new quinquennial cycle for the economic censuses would 11°It impair the Board's benchmark uses of these data for the dex of industrial production and other basic series. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. '011-41 141‘, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 16 4/18/62 WASHINGTON 25, D. C. ADDRESS OFFICIAL CCIRRESPONDENCE TO THE BOARD April 18, 1962 Board of Directors, County National Bank of Mineola, Mineola, New York. Gentlemen: The Board of Governors of the Federal Reserve SYstem has given consideration to your application for fiduciary powers and grants County National Bank of Mineola authority to act, when not in contravention of State or local law, as registrar of stocks and bonds and transfer agent. The right to act as transfer agent may be exercised only to the extent that State banks, trust companies or other corporations which come into competition with national banks are permitted so to act under State or local law.. The exercise of such rights also shall be subject to the provisions of Section 11(k) of the Federal Reserve Act and Regulation F of the Board Of Governors of the Federal Reserve System.* A certificate covering such authorization is enclosed. Very truly yours, (Signed) Kenneth A. Kenneth A. Kenyon, Assistant Secretary. Enclosure Kenyon BOARD OF GOVERNORS .0011/0,4 OF THE Cr FEDERAL RESERVE SYSTEM Item No. 17 4/18/62 WASHINGTON 25. D. C. 4' ;t * ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD April 181 1962 Board of Directors, United California Bank, Los Angeles, California. Gentlemen: The Board of Governors of the Federal Reserve System approves the establishment of a branch by United California Bank in the vicinity of Mendocino Avenue between Fourth Street and College Avenue, Santa Rosa, Sonoma County, California, provided the branch is established within one year from the date of this letter. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, A:;sistant Secretary. 14 9 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 18 4/18/62 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD April 18, 1962 The Honorable Lee Loevinger, Assistant Attorney General, A ntitrust Division, ; Ili S. Department of Justice, ga shington 25, D. C. bear -udge J Loevinger: coml. . This will acknowledge your letter of March 30, 1962, in p ection with the pending case of United States v. Bank Stock ration of Milwaukee, requesting that representatives of the dijtrust Division be permitted to examine and copy reports of conand of earnings and dividends for the years 1956 through filed by the State member banks in Milwaukee County identified '''4SChedUle A to your letter. In response to your request, the Board will make available at its the offices for examination and copying by your representatives co2ePorts in question. It is suggested that your representatives 180"E nicate with Mr. Gerald M. Conkling, Assistant Director of the to_Ittis Division of Bank Operations, in connection with arrangements access to these reports. In making these reports available to your Division, it shawl corloi .oe understood that, while the front sides of the reports of aa ti'itlon are published material, the reverse sides thereof, as well tort,22 entire earnings and dividends reports, are not published intai;:'1.1-f:) "4 Accordingly, it is requested that appropriate steps be ; in the preparation of any statistical tables to assure that the not be identified, nor made identifiable, unpublished informapelo_ ' , aiming to any single banking institution. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary 1_420 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 19 4/18/62 AODRILIS OFFICIAL CORRICMOONDIENCIE TO THE BOARD April 20, 1962. Dear Sir: This refers to the Board's telegram of April 17, 1962, licing the letter from the Comptroller of the Currency to national elrlICS regarding the elimination of the midyear report of income and `4•4/ridends. Z In the circumstances, the Board will not collect the usual rePorts of income and dividends from State member banks for the six ths ended June 30, 1962. The Board has requested its staff to Prepare a memorandum exploring reasons for and against obtaining midreports from a limited sample of member banks on a simplified Thdlt containing the items used in the semiannual press statement (E.5). e views of your Bank on this subject would be helpful. r Very truly yours, Merritt Secreta T° THE PRESIDENTS OF ALL FEDERAL RESERVE BANKS BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 20 4/18/62 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD April 18, 1962 CONFIDENTIAL (FR) Mr. H. E. Hemmings, First Vice President, Federal Reserve Bank of San Francisco, San Francisco 20, California. Dear Mr. Hemmings: In accordance with the request contained in your letter of April 6, 1962, the Board approves the appointment of Thomas Everest Rockwell as an assistant examiner for the Federal Reserve Bank of San Francisco. Please advise the effective date of the aPpointment. It is noted that Mr. Rockwell is indebted to The Hibernia Bank, San Francisco, California, a nonmember bank. nt Accordingly, the Board's approval of Mr. Rockwell's appointme in te i8 given with the understanding that he will not participa an examination of that bank until his indebtedness has been liquidated. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary.
@FedFRASER