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Minutes for
To:
Members of the Board
From:
Office of the Secretary
April 2, 1962
minutes of the
Attached is a copy of the
eral Reserve System on
Board of Governors of the Fed
the above date.
lude a statement
It is not proposed to inc
entries in this set of
with respect to any of the
icy actions required to
minutes in the record of pol
tion 10 of the Federal
be maintained pursuant to sec
Reserve Act.
on with regard to
Should you have any questi
iated if you will advise
the minutes, it will be apprec
erwise, please initial
the Secretary's Office. Oth
t at the meeting, your
below. If you were presen
roval of the minutes. If
initials will indicate app
r initials will indicate
you were not present, you
minutes.
only that you have seen the
Chm. Martin
Gov. Mills
Gov. Robertson
c>c,
Gov. Balderston
Gov. Shepardson
Gov. King
Gov. Mitchell
Minutes of the Board of Governors of the Federal Reserve System
on Monday, April 2, 1962.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
The Board met in the Board Room at 10:00 a.m.
Balderston, Vice Chairman
Mills
Robertson
Shepardson
King
Mitchell
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Discount rates.
Sherman, Secretary
Kenyon, Assistant Secretary
Fauver, Assistant to the Board
Hackley, General Counsel
Farrell, Director, Division of
Bank Operations
Solomon, Director, Division of
Examinations
Johnson, Director, Division of
Personnel Administration
O'Connell, Assistant General Counsel
Shay, Assistant General Counsel
Furth, Adviser, Division of
International Finance
Goodman, Assistant Director, Division
of Examinations
Leavitt, Assistant Director, Division
of Examinations
Spencer, General Assistant, Office of
the Secretary
The establishment without change by the Federal
Reserve Banks of Chicago, Minneapolis, and San Francisco on March 29,
1962, of the rates on discounts and advances in their existing schedules
was approved unanimously, with the understanding that appropriate advice
would be sent to those Banks.
Circulated or distributed items.
The following items, which had
been circulated or distributed to the members of the Board and copies
4/2/62
-2-
of which are attached to these minutes under the respective item numbers
indicated, were approved unanimously:
Item No.
Letter to State Bank of Springfield, Springfield,
Minnesota, waiving the requirement of six months'
notice of withdrawal from membership in the
Federal Reserve System.
1
Letter to The First Pennsylvania Banking and
Trust Company, Philadelphia, Pennsylvania,
approving an extension of time to establish a
branch at Ashland Avenue and MacDade Boulevard,
Glenolden.
2
Letter to The Citizens National Bank of Front
Royal, Front Royal, Virginia, approving its
application for fiduciary powers.
3
Letter to the Federal Reserve Bank of Chicago
waiving the assessment of a penalty incurred by
National Bank of Fairbury, Fairbury, Illinois,
because of a deficiency in its required reserves.
14.
Letter to The Parker Banking Company, Parker,
Indiana, granting its request for permission to
exercise a specific fiduciary power.
5
Letter to the Federal Deposit Insurance Corporation
regarding the application of Farmer's Bank of Polo,
Missouri, Polo, Missouri, for continuation of
deposit insurance after withdrawal from membership
in the Federal Reserve System.
6
Letter to the Federal Reserve Bank of San Francisco
approving the appointment of George Virta as
Alternate Assistant Federal Reserve Agent.
7
Letter to the Federal Reserve Bank of New York
enclosing a copy of a letter dated March 20, 1962,
from the Dallas Reserve Bank concerning compliance
by the Reserve Banks with State laws relating to the
protection and preservation of dormant deposits and
inactive accounts held by a depository. (With similar
letters to all other Reserve Banks except Dallas.)
8
4/2/62
-3Item No.
Letter to Philadelphia International Investment
Corporation, Philadelphia, Pennsylvania, approving
an additional investment in Mitsubishi Chemical
Industries, Ltd., Tokyo, Japan.
With respect to Item No.
9
9, Mr. Goodman noted that the staff
had some question as to whether stock of a large foreign industrial
concern with shares listed on a stock exchange in a foreign country
represented the type of investment that was appropriate for an Edge Act
financing corporation.
In view of the small amount being invested and
the other circumstances of this particular case, the staff would not
recommend against approval.
However, it was felt that the question
raised by this kind of investment should be considered in connection
with the current review of Regulation K.
Mr. Johnson then withdrew from the meeting and Mr. Molony,
Assistant to the Board, entered the room.
Request of United California Bank (Item No. 10).
In a letter
dated March 23, 1962, United California Bank, Los Angeles, California,
requested the competitive factor reports that had been submitted to the
Board by the Federal Deposit Insurance Corporation and the Department of
Justice with respect to United's proposed merger with The First National
Bank of Vista, California.
In connection with this request, a memorandum
dated March 29, 1962, from the Division of Examinations and the Legal
Division had been distributed.
4/2/62
As indicated in the memorandum, the Comptroller of the Currency
had made public an unfavorable competitive factor report regarding this
application.
United California Bank therefore believed that it should be
permitted to have the reports made by the Federal Deposit Insurance
Corporation and the Justice Department in order to prepare such refutation
as it might desire.
If the Board made these reports available, the
memorandum stated, it would appear difficult to deny any request for
similar reports in the future.
However, in this case the Division of
Examinations and the Legal Division were recommending that the Board
make the reports available, after checking to determine that there would
be no objection, and that United California Bank be given two weeks to
make any comments or observations.
In commenting, Mr. Leavitt noted that the memorandum stated that
the Comptroller was not making public competitive factor reports of the
other supervisory agencies and the Justice Department unless an oral
presentation was held in connection with a particular case.
As to
release of his own reports, the Comptroller was understood to be doing
so only when there was "interest in the case."
Actually, the only
Instance in which the Comptroller had been asked for access to competitive
factor reports of the other agencies was in the case involving the
proposed merger of the National Bank of Detroit with the Bank of Livonia,
Livonia, Michigan.
In that instance, the Comptroller at first denied
the request for the reports; later, however, when an oral presentation
4/2/62
-5-
was scheduled, the reports were made available.
In discussing this
subject with the Comptroller's Office, the Board's staff received no
indication as to what procedure the Comptroller might follow with
respect to future requests for reports in cases where an oral presentation
had not been scheduled.
During further discussion, Mr. Hackley pointed out that this
was the first instance of a request of this type being received in a
case where the Board had not authorized an oral presentation.
Under the
Board's internal rules relating to the handling of merger applications,
it was contemplated that competitive factor reports of other agencies
would be made available only as required by law and in a public
proceeding, and when authorized by the agencies making the reports.
In this particular case, however, the report of the Comptroller of the
Currency already had been released.
Further, the Federal Deposit
Insurance Corporation and the Department of Justice had indicated on
previous occasions that they would have no objection to their reports
being released.
Governor Mills said his inclination would be to deny the request.
It would seem to him irregular, in advance of Board consideration of the
case, to submit to the applicant the reports of the Federal Deposit
Insurance Corporation and the Justice Department.
Those reports related
only to the competitive factors involved and not to the other factors
that the Board was also required to consider in reaching a decision.
4/2/62
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The intent of the law was that the Board reach an objective judgment
based on all the material available to it.
He could find no reason to
inject into the procedure a submission to the applicant of the reports
of the other two agencies, even though the Comptroller of the Currency
might be moving toward that position.
If the Board released the
reports, that might reduce, in the eyes of the public, its stature in
fulfilling its legal responsibilities.
Also, a submission of the
reports to the applicant might indicate the Board would welcome a
subsequent challenge in the event of a decision adverse to the applicant.
Governor Robertson commented that as he viewed the matter, it
was merely a question of whether the Board made the reports available
or whether the applicant went direct to the other agencies to get them.
If a public proceeding was held, everything pertinent to the case should
be made a part of the public record.
In other circumstances, he would
consider it preferable if the competitive factor reports were used by the
banking agencies in the manner contemplated by Congress; that is, as
advisory reports on competitive factors.
to draw the line.
However, he did not know how
There seemed little difference between the Board's
furnishing the reports, if the consent of the originating agencies was
obtained, or having the other agencies release them.
Governor Shepardson said he did not feel such reports, prepared
for a limited purpose, were intended to be public reports.
In the
present circumstances, the Board was in an unfortunate position.
He
4/2/62
-7-
agreed with Governor Robertson that it was difficult to draw a line, but
personally he would be inclined to disapprove the request.
Governor King commented that he did not believe the reports were
designed to be used as a basis for debate between the agencies rendering
them and the applicant.
The Comptroller had made his report available,
and that presented a problem.
If the Board was going to furnish such a
report to an applicant, then he felt it should establish a general
procedure whereby such reports would be sent to applicants regularly,
Without specific request.
In his opinion, to make reports available on
an ad hoc basis, as in this case, would not be good procedure.
Governor Mitchell expressed the opinion that the Board had little
alternative.
It would seem preferable if the practices of all of the
agencies involved were consistent, to avoid the hazard of permitting the
agencies to be played against each other.
In the prevailing circumstances,
however, he would not object, in this case, to releasing the competitive
factor reports of the other two agencies.
Governor Balderston said he understood Governors Mills, Shepardson,
and King would favor denying the request of United California Bank, and
that he would go along with their position.
Accordingly, it was agreed by majority decision, from which
Governors Robertson and Mitchell dissented, to deny the request for
access to the reports in question.
A copy of the letter sent to United
California Bank pursuant to this action is attached as Item No. 10.
-8-
4/2/62
Messrs. Shay and Leavitt then withdrew from the meeting.
Request to use page from examination report (Item No. 11).
There
had been distributed a memorandum from the Legal Division dated March 30,
1962, discussing a letter of March 21, 1962, forwarded to the Board by
the Federal Reserve Bank of Dallas, in which permission was requested
by Mr. Wentworth T. Durant, Attorney for Panhandle State Bank of Borger,
Texas, for permission to use a certain page of the bank's January 10,
1953, report of examination in the course of a trial involving Panhandle
State Bank to be conducted before the Tax Court of the United States.
The page contained information that the bank felt would be helpful in
proving its intent regarding the use of certain property that had been
acquired.
It was the recommendation of the Legal Division that the
request be denied.
A proposed telegram to the Dallas Bank, drafted in
a manner reflecting that recommendation, was attached.
During discussion, Mr. O'Connell stated that after the memorandum
was submitted he had received a telephone call from Mr. Rudy, General
Counsel for the Federal Reserve Bank of Dallas, regarding this matter.
Mr. Rudy said that an agent of the Internal Revenue Service had asked to
study the entire examination report.
request.
Mr. Rudy had declined to grant the
At the agent's suggestion, he later talked with the Chief
Counsel of the Internal Revenue District, indicating that if the agency
wished to have a definite answer, it would be necessary to bring the
matter to the Board for decision.
the request would not be pursued.
Mr. Rudy received the impression that
4/2/62
-9Commenting on this subject, Governor Mills said that he agreed
with the position recommended by the Legal Division.
There seemed to
him to be shades of distinction calling for full consideration in the
various cases coming before the Board.
As he saw it, there were strong
and unassailable reasons why the Board should not release to a court
and other Federal agencies information taken from a report of examination
having to do with the position of a customer of a bank.
Similarly, as
noted in the Legal Division's memorandum, the Board recently declined to
furnish an examination report to a party to a civil suit.
The present
case involved a pending tax suit between the Bureau of Internal Revenue
and a former State member bank.
It was difficult, admittedly, to
separate the different situations clearly enough so as to say that a
report Should be released in one instance and then denied in another.
That appeared to be the position of the Legal Division, and he would
concur in it.
However, the question was not black and white.
In further discussion, Governor Robertson indicated that he
would follow the Legal Division's recommendation in this case because
the best available evidence on the point in question would appear to
come from the bank's own records rather than the examination report.
Governors Shepardson and King concurred.
Governor Mitchell, however, indicated that he would favor granting
the request.
He said that he was disturbed about the treatment of the
request of the Internal Revenue Service.
If that request was turned
4/2/62
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down, perhaps the bank's request also should be denied.
In his view,
however, there was no reason for not acceding to both requests.
Use
of the page of the examination report by the bank apparently would
simply provide a convenient method of attempting to prove intent.
Governor Balderston said that his sympathies were with the bank.
However, he felt that the bank and the Internal Revenue Service should
be treated alike.
Following additional comments, the telegram to the Federal
Reserve Bank of Dallas was approved, Governor Mitchell dissenting.
A
copy of the telegram is attached as Item No. 11.
All members of the staff then withdrew and the Board went into
executive session.
Foreign travel by Mr. Katz.
The Secretary was informed later
that during the executive session the Board authorized attendance by
Samuel I. Katz, Associate Adviser, Division of International Finance,
at the meeting of Working Party 3 of the Organization for Economic
Cooperation and Development to be held in Paris, France, on April 16-17,
1962.
The Board also authorized Mr. Katz to visit the Bank of England,
the Bank of France, and the German Federal Bank, and perhaps certain
universities or Government offices in England and Germany.
trip was to take about three weeks.
The meeting then adjourned.
The entire
4/2/62
-11Secretary's Notes: The steps contemplated
by the Board's action of March 20, 1962, in
issuing a preliminary permit to First
Pennsylvania Overseas Finance Corporation,
Philadelphia, Pennsylvania, having been
completed, a final permit to commence business
was issued today to that corporation.
On March 29, 1962, Governor Shepardson approved
on behalf of the Board the recommendation
contained in a memorandum from the Division
of Personnel Administration dated March 21,
1962, that the Board's Leave Regulations be
amended to incorporate an extension of the
period for the transfer and recrediting of
sick leave, in cases of breaks in service,
from 52 continuous calendar weeks to 3 years,
this provision applying only to those persons
reemployed on or after January 9, 1962.
Pursuant to recommendations contained in
memoranda from appropriate individuals
concerned, Governor Shepardson approved on
behalf of the Board on the dates indicated
the following actions relating to the Board's
staff:
On March 29, 1962:
Salary increase with change in title
Adeline R. Lamb, from $4,510 to $4,830 per annum, with a change
in title from Accounting Technician to Budget and Planning Assistant,
Office of the Controller, effective April 1, 1962.
On March 30, 1962:
Appointments, effective the respective dates
of entrance upon duty
Division of Research and Statistics
Julian H. Atkinson as Economist (unclassified position), with
basic annual salary at the rate of $13,000.
James M. Howell as Economist, with basic annual salary at the
rate of
600.
Starr Preston Morris as Clerk, with basic annual salary at the
rate of $3,760.
4/2/62
Salary increases, effective April 1, 1962
Division of Research and Statistics
Suzanne Courtright, Statistical Clerk, from $3,865 to
$4,o4o per
annum.
Mary Hedda Hillard, Statistical Assistant, from $5,005 to $5,325
per annum.
Paul F. McGouldrick, Economist, from $8,340 to $8,955 per annum.
N. Lois Orr, Statistical Clerk, from $3,865 to
$4,04o per annum.
Robert M. Steinberg, Economist, from $6,765 to $7,560 per annum.
Division of Bank Operations
Theodore A. Veenstra, Jr., Technical Assistant, from
$10,635 per annum.
$9,735 to
On April 21 1962:
Appointment
Barbara Anne Bosworth as Statistical Clerk, Division of Research
and Statistics, with basic annual salary at the rate of $4,040, effective
the date of entrance upon duty.
Pursuant to the recommendation contained
in a memorandum from the Division of
Personnel Administration dated March 28,
1962, Governor Shepardson approved today
on behalf of the Board the following policy
with respect to reimbursement of expenses
incurred in connection with transfers from
a Federal Reserve Bank or Branch to the
Board where the Board initiates the original
recruitment:
(1) The movement of household goods and personal effects of
employees and their families from residence in the Federal
Reserve area to a residence established in this area. Expenses
incident to the necessary temporary storage in the Washington,
D. C., area of these goods and effects pending location of a
residence, for a period not to exceed 6o days.
(2) Transportation for the employee and a per diem allowance
in lieu of subsistence while in a travel status.
4/2/62
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(3) Transportation of the employee's immediate family.
Reimbursement for transportation and per diem would be
in accordance with the Board's travel regulations.
BOARD OF GOVERNORS
OF THE
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FEDERAL RESERVE SYSTEM
Item No. 1
4/2/62
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WASHifgGTON 25. D. C.
ADORERS
orriciAL
CORRESPONDENCE
TO THE BOARD
—4.07WAsl. EISI. *
April 20 1962
Board of Directors,
State Bank of Springfield,
Springfield, Minnesota.
Gentlemen:
The Federal Reserve Bank of Minneapolis has forwarded
to the Board of Governors your letter dated March 9, 1962,
together with the accompanying resolution of the same date,
signifying your intention to withdraw from membership in the
Federal Reserve System and requesting waiver of the six months'
notice of such withdrawal.
The Board of Governors waives the requirement of six
months' notice of withdrawal. Under the provisions of Section
10(c) or the Board's Regulation H, your institution may accomplish termination of its membership at any time within eight
months from the date that notice of intention to withdraw from
membership was given. Upon surrender to the Federal Reserve
Bank of Minneapolis of the Federal Reserve Bank stock issued to
your institution, such stock will be canceled and appropriate
refund will be made thereon.
It is requested that the certificate of membership
be returned to the Federal Reserve Bank of Minneapolis.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
Item No. 2
412/62
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
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April 20 1962
Board of Directors,
The First Pennsylvania Banking
and Trust Company,
Philadelphia, Pennsylvania.
Gentlemen:
The Board of Governors of the Federal Reserve
System has approved an extension until April 22, 1963, of
the time within which The First Pennsylvania Banking and
Trust Company, Philadelphia, Pennsylvania, may establish
a branch at the northeast corner of Ashland Avenue and
MaeDade Boulevard, Glenolden, Delaware County, Pennsylvania.
The establishment of this branch was authorized in a letter
dated April 21, 1960*
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No.
3
4/2/62
WASHINGTON 25. D. C.
ADDRESS
orriciA+
CORRESPONDENCE
TO THE BOARD
April 2, 1962
Board of Directors,
The Citizens National Bank of Front Royal,
Front Royal, Virginia.
Gentlemen:
The Board of Governors of the Federal Reserve System
has given consideration to your application for fiduciary
powers and grants The Citizens National Bank of Front Royal
authority to act, when not in contravention of State or local
law, as trustee, executor, administrator, registrar of stocks
and bonds, guardian of estates, assignee, receiver, committee
of estates of lunatics, or in any other fiduciary capacity in
which State banks, trust companies, or other corporations
which come into competition with national banks are permitted
to act under the laws of the State of Virginia. The exercise
of such rights 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 formal certificate indicating the fiduciary powers
that your bank is now authorized to exercise will be forwarded
in due course.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No.
4
4/2/62
WASHINGTON 25. CI. C.
ADDRESS
orriciAL CORRESPONDENCE
TO THE BOARD
April 2, 1962
Mr. Laurence H. Jones,
Vice President and Cashier,
Federal Reserve Bank of Chicago,
Chicago 90, Illinois.
Dear Mr. Jones:
This refers to your letter of March 19, 1962, regarding
a penalty of $46.03 incurred by the National Bank of Fairbury,
Fairbury, Illinois, on a deficiency of 4.7 per cent in its required
reserves for the biweekly computation period ended June 28, 19610
which your Bank inadvertently failed to assess.
In the circumstances outlined in your letter and in View
of the time that has elapsed since the deficiency occurred, the Board
concurs in your recommendation and authorizes your Bank to waive the
assessment of the penalty of $46.03 for the period ended June 28, 1961.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No.
5
4/2/62
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
April 2, 1962
Board of Directors,
The Parker Banking Company,
Parker, Indiana.
Gentlemen:
This refers to your request for permission,
under applicable provisions of your condition of
membership numbered 12 to act in a specific fiduciary
capacity.
Following consideration of the information submitted, the Board of Governors of the Federal Reserve
System grants permission to The Parker Banking Company to
act as trustee under mortgage indenture for Monroe Central
School Building Corporation, with the understanding that
your bank will not accept any other fiduciary appointments
without first obtaining the permission of the Board.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 6
4/2/62
WASHINGTON 25, D. C.
ADDRESS OrriCIAL CORRESPONDENCE
TO THE BOARD
43
tr, otritt.0,,
April 2, 1962
The Honorable Erie Cocke, Sr., Chairman,
Federal Deposit Insurance Corporation,
Washington 25, D. C.
Dear Mr. Cockel
Reference is made to your letter of March 20,
1962, concerning the application of Farmer's Bank of Polo,
Missouri, Polo, Missouri, for continuance of deposit
insurance after withdrawal from membership in the Federal
Reserve System.
No corrective programs which the Board of
Governors believes should be incorporated as conditions
to the continuance of deposit insurance have been urged
upon or agreed to by the bank.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No.
7
4/2/62
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
April 2, 1962
AIR NAIL
Mr. F. B. Whitman, Federal Reserve Agent,
Federal Reserve Bank of San Francisco,
San Francisco 20, California.
Dear Mr. Whitman:
In accordance with the request contained in your letter of
March 19, 1962, the Board of Governors approves the appointment of
Mr. George Virta as an additional Alternate Assistant Federal Reserve Agent
at the Federal Reserve Bank of San Francisco.
This approval is given with the understanding that Mr. Virta
'Will be solely responsible to the Federal Reserve Agent and the Board of
Governors for the proper performance of his duties, except that, during
the absence or disability of the Federal Reserve Agent or a vacancy in
that office, his responsibility will be to the Assistant Federal Reserve
Agent and the Board of Governors.
When not engaged in the performance of his duties as Alternate
Assistant Federal Reserve Agent Mr. Virta may, with the approval of the
Federal Reserve Agent and the President, perform such work for the Bank
as will not be inconsistent with his duties as Alternate Assistant Federal
Reserve Agent.
It will be appreciated if Mr. Virta is fully informed of the
importance of his responsibilities as a member of the staff of the Federal
Reserve Agent and the need for maintenance of independence from the operations
of the Bank in the discharge of these responsibilities.
It is noted from you letter that with the approval of 1:ir. Virtals
aPpointment by the Board of Governors, he will execute the usual Oath of
°face which will be forwarded to the Board together with advice as to the
effective date of his appointment.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
BOARD OF GOVERNORS
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OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
Item No.
8
4/2/62
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
Apri1 2, 1962
Mr. Alfred Hayes, President,
Federal Aeserve Bank of New York,
New York 45, New York.
Dear Mr. Hayes:
Enclosed are copies of a letter of March 20, 1962, and its enclosures, received by the Board from the Federal Reserve Bank of Dallas,
concerning the applicability to that Bank of a recently enacted Texas
statute providing for the protection and preservation of dormant deposits
and inactive accounts held by a depository, which is broadly defined.
As indicated by the Federal Reserve Bank of Dallas, the question
Of compliance with legislation of this character by the Federal Reserve
Banks would seem to be a matter for System consideration. Accordingly,
letters of this date have gone forward to the Presidents of each of the
Federal Reserve Banks (other than the Dallas Bank) asking that they inform
the Board as to the situation in this respect in the States in which the
Federal Reserve Bank and any branches thereof are located. These letters
explained that it would be helpful to the Board if the replies would include,
with respect to each such State, a copy of any statute on the same subject
as that of the Texas statute, views of the Federal Reserve Bank concerning
the applicability of the statute to that Bank or branch, the types of
deposits and accounts and the amounts thereof that are covered by the
statute, and such other views or comments believed to be appropriate. It is
understood that the New York statute concerning this matter was amended in
1946 to exempt the Federal Reserve Bank of New York, as indicated in the
enclosed correspondence from the Federal Reserve Bank of Dallas. Nevertheless, the views and comments of your Bank with respect to the matter
Presented by the Federal Reserve Bank of Dallas will be appreciated.
As you will note, the Texas statute requires publication beginning
May 1962 by all depositories subject thereto. It is understood that a
similar deadline exists with respect to an Illinois statute on the same
subject. The Board, therefore, will-be grateful if your response to this
matter may be sent to reach the Board's offices by April 16 in order to
allow time for adequate consideration by the Board prior to May 1.
Very truly yours,
(Signed) Merritt Sherman
Enclosures
Merritt Sherman,
Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No.
9
4/2/62
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
April 2, 1962
Philadelphia International
Investment Corporation,
P. 0. BOX 7618,
Philadelphia, Pennsylvania.
Gentlemen:
In accordance with tilt: request and on the basis
of the information furnished in your letter of March 22,
1962, as modified by your memorandum of March 29, 1962, the
Board of Governors grants consent for Philadelphia International
Investment Corporation to purchase and hold 132,602.5 new
shares of the capital stock of Mitsubishi Chemical Industries,
Ltd., Tokyo, Japan, at a net cost of approximately USS18,500.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
BOARD OF GOVERNORS
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4. WON, z't
OF THE
FEDERAL RESERVE SYSTEM
•
1
Item No. 10
4/2/62
WASHINGTON 25, D. C.
ADDRESS orrecsAL CORRESPONDENCE
4o
TO THE BOARD
4444**
April 2, 1962.
Board of Directors,
United California Bank,
Los Angeles, California.
Gentlemen:
The Board of Governors has considered the request
contained in your letter of March 23, 1962, for access to
the competitive factor reports submitted by the Federal
Deposit Insurance Corporation and the Department of Justice
to the Board in the proposed merger of United California
Bank and The First National Bank of Vista.
The Board has denied your request inasmuch as it
has been the practice of the Board not to make available
reports on competitive factors from other agencies except
in those instances where oral presentation or hearing has
been ordered.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
TELEGRAM
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
LEASED WIRE SERVICE
Item No. 11
4/2/62
WASHINGTON
April 2, 1962.
Pondrom — Dallas
Re your letter March 22 transmitting request by Durant,
Attorney for Panhandle State Bank of Borger, Texas, for permission
to use page 13(a) of January 10, 1953 Report of Examination of
Panhandle Bank in case pending before tax court. Board will not make
page 13(a) of 1953 Report of Examination available to Durant for use
in subject litigation, nor will Board permit disclosure of information
contained on page 13(a) either in form of deposition of affidavit or
byway of testimony of Examiner Sullivan. Should Durant effect service
of subpoena duces tecum on appropriate personnel of your Bank calling
for production of page 13(a) or for work papers from which page
completed, person subpoenaed should follow procedures set forth in
section 261.5(a) and (b) of Board's Rules Regarding Information,
Submittals, and Requests. Particular attention should be given to
requirement for immediate advice to Board called for in section 261.5.
Sherman
@FedFRASER