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Minutes of actions taken by the Board of Governors of the Federal Reserve System on Tuesday, April 21, 1953. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Martin, Chairman Evans Vardaman Robertson Carpenter, Secretary Sherman, Assistant Secretary Kenyon, Assistant Secretary Thurston, Assistant to the Board Riefler, Assistant to the Chairman Thomas, Economic Adviser to the Board Marget, Director, Division of International Finance Mr. Solomon, Assistant General Counsel Mr. Dembitz, Assistant Director, Division of International Finance Mr. Cherry, Legislative Counsel Mr. Mr. Mr. Mr. Mr. Mr. Mr. The following request for travel authorization was presented: Duration of Travel Name and Title Susan S. Burr, Assistant Director, Division of Research and Statistics June 27 - July 2, 1953 To travel to Athens, Ohio, to conduct sessions on Savings and CaPital Formation and The Federal Reserve System at the Ohio Workshop Ta Economic Education, to be held at Ohio University, and to travel rl'oM there to Nashville, Tennessee, to conduct sessions on the same "Ibiects at the Tennessee Workshop on Economic Education, to be held at Belmont College. Approved unanimously. Mr. Cherry presented a report on legislative developments of itterest to the Board during which he stated that Senator Maybank, of SoUth Carolina, had introduced an amendment to Bill S. 1081, to provide 7e1 4/21/53 -2- authority for temporary economic controls, which would prohibit the imposition of controls over consumer and real estate construction credit pursuant to Title VI of the bill unless the President found and declared under section 801 thereof that a grave national emergency existed and established ceilings on prices, wages, and rents pursuant to the authority given by that section. Mr. Cherry said it was difficult to predict when Bill S. 1081 would come up in the Senate due to current debate on the tidelands Oil bill. In addition, he understood that Congressman Wolcott, Chairman Of the House Banking and Currency Committee, was preparing to report out a bill providing for rent controls and hoped to have consideration of that bill by the House this week. Should the House pass the latter bill, Mr. Cherry said, it appeared that Congressman Wolcott would take the position that that was the only legislation which was necessary at this time. In the course of further comments, Mr. Cherry referred to a request received by the Board from the Senate Banking and Currency Committee for 4 report on Bill S. 1631, introduced by Senator Bricker, of Ohio, which 'would amend section 10 of the Federal Reserve Act to provide increased authority for the construction of Federal Reserve Bank branch buildings. He InIderstood that no other agency had been asked for its views on this bill, "d he Proposed to send to the Clerk of the Committee copies of the statetleat on branch buildings which was handed to Senator Bricker by Chairman MeLrtin with the thought that if this were done, there would be no need to 4/21/53 -3- make a reply to the letter from the Committee. Mr. Cherry went on to say that it was expected that there would be hearing on this matter before the House Banking and Currency Committee sometime next week. Mr. Cherry also stated that the Clerk of the Senate Banking and Currency Committee had informed him yesterday that no definite date had been set for the beginning of hearings on bank holding company legislation. Mr. Cherry then withdrew from the meeting. At the request of Chairman Martin, Mr. Margot presented a brief review of certain international financial developments, commenting princiPally on recent and prospective international gold and dollar movements and the budget recently submitted by the British Chancellor of the Exchequer. The members of the staff then withdrew and the Board went into executive session. Following the executive session Chairman Martin informed the Secretary that the Board had agreed that one member of the senior staff should be selected by the Chairman to represent the staff at the opening of the new Federal Reserve Bank of Boston building in May. The meeting then adjourned. During the day the following additional actions were taken by the Board, with all of the members except Governor SzYMczak present: Minutes of actions taken by the Board of Governors of the Federal Reserve System on April 201 1953, were approved unanimously. 4/21/53 -4Letter to Mr. Virden, Chairman and Federal Reserve Agent, Federal Reserve Bank of Cleveland, reading as follows: "In accordance with the request contained in your letter of April 10, 1953, the Board of Governors approves the payment of salaries to the following members of the Federal Reserve Agent's staff at the rates indicated, effective April 26, 1953, Annual Salary Title "Name Head Office $5,252 Assistant Federal Reserve Norman R. Matter Agent 4,888 Alternate Assistant Federal Edison F. Peck Reserve Agent 5,967 Alternate Assistant Federal Roy M. Trout Reserve Agent Cincinnati Branch 6,370 Federal Reserve Agent's Wm. Howard Marsh Representative 6,162 Federal Reserve Agent's Harry H. Ostendorf Representative Pittsburgh Branch 5,044 Wm, J. Cosgrove Federal Reserve Agent's Representative 5,278" Gordon M. Trowbridge Federal Reserve Agent's Representative Approved unanimously. Letter to the Federal Deposit Insurance Corporation, Washington, D. C., reading as follows: "Pursuant to the provisions of section 4(b) of the Federal Deposit Insurance Act, the Board of Governors of the Federal Reserve System hereby certifies that The Citizens Bank, Batesville, Arkansas, became a member of the Federal Reserve System on April 15, 1953, and is now a member of the System. The Board of Governors of the Federal Reserve System further hereby certifies that, in connection with the admission of such bank to membership in the Federal Reserve 4/21/53 -5- "System, consideration was given to the following factors enumerated in section 6 of the Federal Deposit Insurance Act: 1. The financial history and condition of the bank, 2. The adequacy of its capital structure, 3. Its future earnings prospects, 4. The general character of its management, 5. The convenience and needs of the community to be served by the bank, and 6. Whether or not its corporate powers are consistent with the purposes of the Federal Deposit Insurance Act." Approved unanimously. Mr. Carpenter reported that the Comptroller of the Currency would issue a call on April 23, 1953, on all national banks for rePorts of condition as of the close of business on April 20, 1953, and that, in accordance with the usual practice and the Board's letter of April 17, 1953, a call would be made on April 23 on behalf Of the Board of Governors of the Federal Reserve System on all State Member banks for reports of condition as of April 20, 1953. The call to be made cn behalf of the Board on April 23, 1953, was approved imanimously.
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