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Minutes for To: Members of the Board From: Office of the Secretary April 20, 1964 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 only that you have seen the minutes. Chm. Martin Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. Mitchell Gov. Daane Minutes of the Board of Governors of the Federal Reserve System On Monday, April 20, 1964. PRESENT: Mr. Mr. Mr. Mr. The Board met in the Board Room at 10:00 a.m. Mills, Acting Chairman Robertson Shepardson Daane Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Sherman, Secretary Kenyon, Assistant Secretary Fauver, Assistant to the Board Hackley, General Counsel Farrell, Director, Division of Bank Operations Solomon, Director, Division of Examinations Hooff, Assistant General Counsel Leavitt, Assistant Director, Division of Examinations Spencer, General Assistant, Office of the Secretary Hricko, Senior Attorney, Legal Division Egertson, Supervisory Review Examiner, Division of Examinations Ratification of actions. Actions taken by the available members °t the Board at a meeting held on Friday, April 17, 1964, as recorded illthe minutes of that meeting, were ratified by unanimous vote. Discount rates. The establishment without change by the Federal 've Bank of Atlanta on April 17, 1964, of the rates on discounts Ethci `'Alvances in its existing schedule was approved unanimously, with the Understanding that appropriate advice would be sent to that Bank. Circulated or distributed items. The following items, copies or 4ich are attached to these minutes under the respective item numbers iN4e4ted, were approved unanimously: 136t) 4/20/64 -2Item No. Letter to United California Bank, Los Angeles, California, approving an extension of time to es tablish a branch in Downey. 1 Letter to Bank of Arkansas, Little Rock, Arkansas, alpPr°ving the establishment of a branch (teller's 11ncicv) at 4306 Asher Avenue in connection with the address to removal of its head office from that 400 Center Street; and granting permission 4els condition of membership No. 1 for certain ; clat emplated expanded operations. 2 otter to Granite National Bank, Salt Lake City, granting its request for permission to .`1".ritain reduced reserves. 3 141tA.er int to the Federal Reserve Bank of Chicago raa.?rming it of the assignment of a Federal transmitting frequency for selective s tolle ignalling and one-way voice communications certain personnel on the head office premises. Re ort on co •etitive factors Lumberton-Rowland North Carolina 11'here 1, lad been distributed a draft of report to the Comptroller of the ellr'renn --Y on the competitive factors involved in the proposed merger of The tank lik of Rowland, Rowland, North Carolina, into Southern National North Carolina, LuMberton, North Carolina. Governor Robertson suggested that there be substituted for the cone]. uslon of the draft report the two concluding paragraphs of the 111.Qthia °ncl Reserve Bank's memorandum on the proposed merger. It was his No . 111g that this would provide a more accurate reflection of the cam' 15etitive picture. 1.„`3(i.'" 4/2o/64 .3.. During discussion that followed the substitution suggested by Governor Robertson was agreed upon, with the understanding, however, there 8-:*• would be several minor changes in wording. The report was then to the Comptroller in a form ved - unanimously for transmittal c°11taining the following conclusion: The proposed merger will give the resulting bank a sizable Portion of the commercial banking business in Robeson County. Nevertheless, it will continue to face competition within the county from the State's third largest banking institution, with more than two-fifths of the county's aggregate deposits, which position will be retained. In its other service areas competition will likewise be encountered from banks substantially larger than itself including the State's fourth and sixth largest banks. As the merging bank confines its services primarily to its immediate community, it is believed the proposed merger would eliminate a small amount of competition. The resulting bank would bring new 12anking services to the Rowland area without significantly altering uhe present competitive situation. The meeting then adjourned. Secretary's Notes: A letter was sent today to Bank of America National Trust and Savings Association, San Francisco, California, acknowledging receipt of notice of its intent to establish a branch in Rotterdam, The Netherlands. Governor Shepardson today approved on behalf of the Board the following items: EtpproLe.tter to the Federal Reserve Bank of Cleveland (attached Item No. 5) ving the designation of Edward W. Mohr as special assistant examiner. reco Memorandum from the Division of Data Processing dated April 13, 1964, kioini kelI nding the appointment of Clifford Hildreth, Professor of Economics, Igsan State University, as Consultant in that Division effective to bece; jer 31, 1964, with compensation at the rate of $75 per day and : 41140 regt-lianees for necessary travel in accordance with the Board's travel reelfl!'tions. Approval of this appointment constituted approval of the or t7;'ing overexpenditure in the pertinent account of the 1964 budget "e Division of Data Processing. Secretary BOARD OF GOVERNORS Item No. 1 4/20/64 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS OFFICIAL CORRESPONDENCt TO THE BOARD April 20, 1964. Board of Directors, United California Bank, Los Angeles, California. Gentlemen: e The Board of Governors of the Federal Reserv which System extends to July 1, 1964, the time within the in branch a ish establ may United California Bank Los , Downey of city the of ct downtown business distri Angeles County, California. Very truly yours, (Signed) Karl E. Bakke Karl E. Bakke, Assistant Secretary. ‘( L.;_rekl Item No. 2 BOARD OF GOVERNORS 4/2o/64 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, O. C. 20551 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD April 21, 1964. Board of Directors, sank of Arkansas, Little Rock, Arkansas. Geritleme n: The Board of Governors of the Federal Reserve System approves Arka stablishment of an in-town branch (tellers window) by Bank of as at 4306 Asher Avenue, in connection with the removal of its head Ark;office from that address to 400 Center Street, Little Rock, year from the : dat sas, provided the branch is established within one - of this letter. the It is understood that the State Bank Commissioner has given hie a pproval to this proposal, subject to the following requirements. 1. That capital structure of the bank be increased not less than $1 million by the sale of new capital stock, including an increase in capital stock from $200,000 to $600,000; 2. That the amount to be invested in fixed assets, which includes bank premises and furniture and fixtures, shall not exceed 40 per cent of total capital structure. In the event that the aggregate does exceed this amount, then additional stock will be sold. The Board also grants permission under condition of membership involving more ! 1.11, ) ted 1 for the contemplated expanded operations ile1 t:Ls-nsive competition in the commercial credit field, and in acting as : 81- ssPondent for country banks, provided executive management is ltablY supplemented on or before the opening of the branch. !te.ter to the Reserve Bank Very truly yours, '41,01"4:at 11 the Board also had ths ' : - a six-month extension (Signed) Karl E. Bakke .̀11 ) 1;leriod. allowed to establish 41loalriell; and that if an extension Ill'etz;.be requested, the procedure Karl E. Bakke, c4' 110 beci in the Board's letter Assistant Secretary. lic)ilallyelliber 9, 1962 (S-1846), be followed.) I "( BOARD OF GOVERNORS Item No. 3 4/2o/64 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, O. C. 20551 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD April 20, 1964. }30arcl. of Directors, Grazite National Bank, Seat Lake City, Utah. Ge ntlemen: the Federal With reference to your request submitted through Reee.,,r under the acting rs, Governo of Board prol ve Bank of San Francisco, the Act, grants permission to i. 81°Ils of Section 19 of the Federal .Reserve reserves against same the n "e ' 41) Granite National Bank to maintai ve city banks, effecnonreser by ned ti:tt8 as are required to be maintai computation period beginning APril 30, 1964, the first biweekly reserve -, ett, -' the date of this letter. permission is Your attention is called to the fact that such stthjec4. t• to revocation by the Board of Governors. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS Item No. OF THE 4 100/64 FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS OFFICIAL CORRESPONDENCE TO THE SOARD April 20, 1964. C. J. Scanlon, President, Reserve Bank of Chicago, '`ii-cago, Illinois 60690. 111„ eral 1.14-r. Scanlon: This refers to the several exchanges between your Bank Larson's &ncl Mer. lett Massey of the Board's staff, particularly Mr. tr r °f March 12, in the matter of obtaining a Federal radio vor'esmitting frequency for selective tone signalling and one-way solmei c°mmunications to emergency, maintenance)and security per-6-L on the Head Office premises. * Enclosed is a copy of a letter dated April 13, 1964, D. C. Spitz, Assistant Chief, Telecommunications Liaison united States Coast Guard, indicating assignment by the kuPtePartment Radio Advisory Committee of a Federal radio transfrequency to the Federal Reserve System for use by your nis will be your authority to use the radio frequency as aq n -"t' and according to the particulars in that letter. om mr Staff Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. I:3f; BOARD OF GOVERNORS Item No. 5 4/2o/64 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS OFFICIAL CORRESPONDENCE TO THE 13CIARD April 20, 1964. Mr. Paul C. Stetzelberger, Vice President, Federal Reserve Bank of Cleveland, Cleveland, Ohio. 44101 Dear Mr. Stetzelberger: In accordance with the request contained in Your letter of April 14, 1964, the Board, approves the designation of Edward W. Mohr as a Special Assistant xaminer for the Federal Reserve Bank of Cleveland for the Purpose of participating in examinations of State member banks except The Central Trust Company, Cincinnati, Ohio. The authorization heretofore given your Bank to. deslgnate Mr. Mohr as a Special Assistant Examiner is her 1e-,Y cancelled. Very truly yours, (Signed) Karl E. Bakke Karl E. Bakke, Assistant Secretary.
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