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Minutes for April 26, 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 !anutes 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 he Secretary's Office. Otherwise, please initial ,elow. If you were present at the meeting, your 441tials will indicate approval of the minutes. If You were not present, your initials will indicate Only that you have seen the minutes. t Chin. Martin Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. King Gov. Mitchell 4 Minutes of the Board of Governors of the Federal Reserve System on Thursday, April 26, 1962. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Martin, Chairman Mills Shepardson Mitchell Sherman, Secretary Kenyon, Assistant Secretary Fauver, Assistant to the Board Solomon, Director, Division of Examinations Mr. Hexter, Assistant General Counsel Mr. Leavitt, Assistant Director, Division of Examinations Mrs. Semia, Technical Assistant, Office of the Secretary Mr. Young, Senior Attorney, Legal Division Mr. Mr, Mr. Mr. Circulated or distributed items. The following items, which 41. been circulated or distributed to the Board and copies of which are Etttaebed under the respective item numbers indicated, were approved Item No. Le ter to Liberty Bank and Trust Company, Buffalo, Nei? 1 b York, approving an extension of time to establish ranch in the Township of Tonawanda. Letter phil to Fidelity-Philadelphia Trust Company, iti bedelPhia, Pennsylvania, approving an investment ank premises, tolter to The Cleveland Trust Company, Cleveland, tre aPProving the establishment of a branch n ekaville. Letter 440,0„4,-0 the Federal Deposit Insurance Corporation E1.184:'-Ing the application of Farmers State Bank, 4,181;s: Nebraska, for continuation of deposit Peae 44oe after withdrawal from membership in the Reserve System. 2 3 4 's• 4/26/62 -2Item No. Letter to The First National Bank of Hereford, Hereford, Texas, approving its application for fiduciary powers. 5 'letter to Chairman Robertson of the Senate Q411-king and Currency Committee reporting on J 3203, a bill "to extend the Defense Produc:t.: 401I Act of 1950, as amended, and for other PU rposes." 6 Letter to the Federal Reserve Bank of Chicago ;.1Pr°v1ng the appointment of Leland M. Ross as ,J-ee President in charge of the Bank Examination ePartment, and approving the payment of salaries s°21r. Ross and several other officers at rates ' e by the Board of Directors of the Bank. 7 Z Report on competitive factors (Beacon-Cold Spring, New York). Mere had been distributed a draft of report to the Comptroller of the Currency on the competitive factors involved in the proposed nierfer of The National Bank of Cold Spring on Hudson, Cold Spring, v ' °rK, with and into The Fishkill National Bank of Beacon, Beacon, 'lel? York. The conclusion of the report stated that "The proposed "48011.dation would have little effect on competition." There being no objection, the report was approved unanimously tor transmittal to the Comptroller of the Currency. Park, 11.2122EL22.2.2TELLY factors (Hyattsville-Takoma There had been distributed a draft of report to the Pecieral Deposit Insurance Corporation on the competitive factors involved ilithe proposed merger of Citizens Bank of Takoma Park, Takoma Park, Malin 44d) into Suburban Trust Company, Hyattsville, Maryland. 4/26/62 -3After a brief discussion, the report was approved unanimously tor transmittal to the Federal Deposit Insurance Corporation. The conclusion of the report read as follows: Suburban Trust Company and Citizens Bank are competitive banks offering similar banking services in a service area which is, in a large measure, common to both banks. There is also potential competition between the two banks as a result of branches in process of being established. Important existing and potential competition between the two banks would be eliminated by the merger. Suburban Trust is substantially the largest bank in deposits and offices in both Prince Georges and Montgomery Counties and the Proposed merger would advance this area dominance. The proposed merger would not alter Suburban Trust's relative State-wide standnow the fifth largest commercial bank in the State. However, the merger reflects the continuance of a State-wide trend toward concentration of banking resources in a few large banks. At the instance of Governor Mills, there was a brief discussion Of the scheduling of Board consideration of various pending matters, Particularly in view of prospective absences of members of the Board 4ttinles in the near future. General agreement was reached on dates vhell these matters might be considered by the Board. The meeting then adjourned. Secretary's Note: Pursuant to the recommendation contained in a memorandum from the Division of Research and Statistics, Governor Shepardson today approved on behalf of the Board an increase in the basic annual salary of Gayle A. Steiger, Statistical Clerk in that Division,from $3,970 to $4,1451 effective April 29, 1962. Secretary BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. O. C. Item No. 1 4/26/62 ADORCIIIII °mow. COPINCIPONDCHCC TO TM( 'BOARD April 26, 1962 Board of Directors, Liberty Bank and Trust Company, Buffalo, New York. Gentlemen: The Board of Governors of the Federal Reserve System extends to October 29, 1962, the time within which Liberty Bank and Trust Company, Buffalo, New York, may establish a branch on the west side of Niagara Falls 80111evard, corner of Treadwell Road, Township of Tonawanda, New York. It is understood the branch will be opened in temporary quarters at 1228 Niagara Falls Boulevard, Town8114 of Tonawanda, New York. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 1,198 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 2 4/26/62 ADDRESS OFFICIAL CORRESPONOENICE TO THE SOARO April 26, 1962 Board of Directors, Fidelity-Philadelphia Trust Company, Philadelphia, Pennsylvania. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Philadelphia, the Board of Governors of the Federal Reserve System approves, under the provisions of Section 24A of the Federal Reserve Act, an additional investment of $200,000 in bank premises during the year 1962 by FidelityPhiladelphia Trust Company, Philadelphia, Pennsylvania, for the purpose of leasehold improvements at the main ?Mee as well as for real estate and leasehold improvements at branch offices. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 3 4/26/62 WASHINGTON 25, O. C. ADDREBB OFFICIAL CORRESPONDENCE TO THE BOARD April 26, 1962 Board of Directors, The Cleveland Trust Company, Cleveland, Ohio. G entlemen: The Board of Governors of the Federal Reserve approves the establishment of a branch by The !?stem '..!leveland Trust Company, Cleveland, Ohio, in the 1.8. reckeville Shopping Center on Chippewa Road near the In tersection of Brecksville Road, Brecksville, Ohio, Provided the branch is established within six months 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. 4 4/26/62 WASHINGTON 25, D C. AD RESS OFFICIAL CORRESPONDENCE TO THE BOARD April 26, 1962 The Honorable Erie Cocke, Sr., Chairman, Pederal Deposit Insurance Corporation, Washington 25, D. C. Dear Mr. Cocke: Reference is made to your letter of April 13, 1962, o ncerning the desire of Farmers State Bank, Eustis, Nebraska, ' 13 continue as an insured bank following its withdrawal from membership in the Federal Reserve System. No corrective programs have been urged upon the bank et._ or agreed to by it which the Board of Governors believes 44Quid be incorporated as conditions to the continuance of ,isposit insurance. Very truly yours, (Signed) Elizabeth L. Carmi hael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 5 4/26/62 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE (WARD April 26, 1962 130e A cf Directors, First National Bank of Hereford, "ereford, Texas. Gentlemen: The Board of Governors of the Federal Reserve System has given gra„, consideration to your application for fiduciary powers and 110,t n The First National Bank of Hereford authority to act, when adirli"44 co ntravention of State or local law, as trustee, executor, a8sinistrator, registrar of stocks and bonds, guardian of estates, 0.44nee, receiver, committee of estates of lunatics, or in any other fiduciary capacity in which State banks, trust companies, or cor porations which competition come into national banks with P exe4eirmitted to act under the laws of the State of Texas. The 4ctiose °f such rights shall be subject to the provisions of to n 11(k) of the Federal Reserve Act and Regulation F of the of Governors of the Federal Reserve System. A formal certificate indicating the fiduciary powers that v. clile your bank is now authorized to exercise will be forwarded in course. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM ti42 t uA Item No. 6 WASHINGTON 4/26/62 OFFICE OF THE CHAIRMAN %14.12,11=6$ °004$4.4. April 261 1962 The Honorable A. Willis Robertson, Chairman, 011mittee on Banking and Currency, lylited States Senate, ua shington 25, D. C. 2 Dear Mr, Chairman: This is in response to your letter of April 23, 1962, l',1!qtlesting the Board's views with respect to the bill S. 3203 extend the Defense Production Act of 1950, as amended, and 'Or other purposes." the Section 6 of the bill would extend until June 30, 1964) Act ckuthorities contained in the Act. The only provisions of the coni.which directly concern the responsibilities of the Board are tor lined in Title III relating to Government guaranteed loans , r! 1 ellse production under the Board's Regulation V, and since the' of Emergency Planning considers that this authority is asl.lseful, particularly to the procuring agencies as means of adj”ing their contractors in securing working capital and the-,;1°nal equipment needed for the performance of defense contracts, to_ Board would have no objection to the extension of this program an additional two years as provided by the bill. ,lot the b The Board has no comments with respect to other provisions * which are concerned with matters not directly related to Board's primary responsibilities. Sincerely yours, (Signed) Wm. McCe Martin, Jr. WM. McC. Martin, Jr. AL,Ilf,; BOARD OF GOVERNORS 4410***0 4 pp a.. 1344 -.7 oito OF THE FEDERAL RESERVE SYSTEM , 4 WASHINGTON 25, D. C. 4, * : 0 0 Item NO. 7 4/26/62 ADORES'S OFFICIAL CORRESPONDENCE TO THE BOARD April 26, 1962 2°11:F,..-....ggNTIAL (FR) Mrs Charles J. Scanlon, President, Pederal Reserve Bank of Chicago, Chic'lgo 90, Illinois. De4r Mr. Scanlon: Mr.The Board of Governors approves the appointment of Leland M. Ross as the officer in charge of the Bank Examination ,Partment at the Federal Reserve Bank of Chicago, with the title of 3Tce President, effective May 1, 1962, in accordance with the action ; ,a A ?fl by the Board of Directors, as reported in your letter of Pril 13, 1962. The Board of Governors also approves the payment of salaries to th e following officers of the Federal Reserve Bank of Chicago beginthe effective date shown through December 31, 1962, at the rates in'lcated. Annual Salary Title Name Ef fective May 1) 1962 3-1and M. Ross " names R. Morrison ;',4r1 Weiskopf 'Arris C. Buell ..kt.taEt_tve June 1 Louis J. Purol Vice President Chief Examiner Assistant Chief Examiner Assistant Chief Examiner $18,000 14,000 114,000 12,500 1962 Assistant Cashier (Detroit Branch) 8,000 Very truly yours, (signed) Merritt Sherman Merritt Sherman, Secretary.
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