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Minutes for To: Members of the Board From: Office of the Secretary April 27, 1959 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 sectioa 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, if you were present at the meeting, please initial in column A below to indicate that you approve the minutes. If you were not present, please initial in column B below to indicate that you have seen the minutes. Chm. Martin Gov. Szymczak Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. King 3 / xC4/7 Minutes of the Board of Governors of the Federal Reserve System on Monday, April 27, 1959. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Martin, Chairman Balderston, Vice Chairman Szymczak Mills Robertson Shepardson Sherman, Secretary Kenyon, Assistant Secretary Thomas, Economic Adviser to the Board Janson, Director, Division of Personnel Administration Mr. Hackley, General Counsel Mr. Solomon, Assistant General Counsel Mr. Nelson, Assistant Director, Division of Examinations Mr. Goodman, Assistant Director, Division of Eyaminations Mr. Benner, Assistant Director, Division of Examinations Mr. Hill, Assistant to the Secretary Mr. Brill, Chief, Capital Markets Section, Division of Research and Statistics Miss Hart, Assistant Counsel Mr. Farrell, Legal Assistant Mr. Mr. Mr. Mr. Items circulated or distributed to the Board. 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. Letter to the Marine Midland Trust Company of Central New York, Syracuse, New York, granting an extension of time within which to establish a branch in Camillus, New York, in permanent quarters. (For transmittal through the Federal Reserve Bank of New York) 1 --2- 4/27/59 Item No. Letter to the Chase International Investment Corporation, New York, New York, extending the time within which to purchase stock in a proposed Iranian development corporation. (For transmittal through the Federal Reserve Bank of New York) 2 Letter to the First National Bank in Lake Worth, Lake Worth, Florida, approving its application for fiduciary powers. (For transmittal through the Federal Reserve Bank of Atlanta) 3 Letter to High Ridge Bank, High Ridge, Missouri, approving its application for membership in the h Federal Reserve System. (For transmittal throug ) Louis the Federal Reserve Bank of St. 14 ending Letter to the Comptroller of the Currency recomm North of s Bank People favorably on the application of t conver to a, Florid Miami Beach, North Miami Beach, l Federa the to into a national bank. (With a copy Reserve Bank of Atlanta) 5 . Molony, Messrs. Nelson and Goodman then withdrew and Messrs r, Division of Research Special Assistant to the Board, and Noyes, Advise and Statistics, entered the room. at the meeting Regulations T and U. Pursuant to the discussion a memorandum on April 201 1959, there had been distributed to the Board containing staff from Messrs. Solomon and Brill dated April 24, 19591 Regulations T and U prepared recommendations on the proposals to amend following publiin the light of RnAlysis of written comments received cation of the proposed amendments. The recommendations also reflected Reserve Bank officers views expressed at a meeting with a number of enforcing these regulations. acquainted with operating aspects of 4/27/59 The Secretary read a list of those who had requested to be heard on Wednesday, April 291 and stated that arrangements would be made, by way of grouping some of the parties, to eliminate as much repetition as possible. He noted that the New York Stock Exchange did not wish to make an oral presentation. At the request of the Board, Mr. Solomon and other members Of the staff then commented on the proposed amendments to Regulation U and one of the proposed amendments to Regulation T1 with emphasis on those proposals that seemed most likely to be the subject of oral comment. No conclusions were reached as a result of the discussion, during which Mr. Riefler, Assistant to the Chairman, joined the meeting and Mr. Thomas withdrew, and it was understood that the Board would continue with its consideration of the proposed amendments by receiving the comments of the Federal Advisory Council and those who were to appear the following day. All of the members of the staff except Messrs. Sherman and Johnson then withdrew. Officers' salaries at Cleveland Bank (Item No. 6). Pursuant to the favorable recommendation contained in a memorandum from the Division of Personnel Administration, which had been circulated to the Board, unanimous approval was given to the payment of salaries to four -14- I1./77/59 at rates fixed by officers of the Federal Reserve Bank of Cleveland t to this the Board of Directors. A copy of the letter sent pursuan action is attached as Item NO. 6. The meting then adjourned. BOARD OF GOVERNORS OF THE Item No. 1 FEDERAL RESERVE SYSTEM 4/27/59 WASHINGTON 25, D. C. ADDRESS orriciAL CORRESPONDENCE TO THE BOARD April 271 1959 Board of Directors, Marine Midland Trust Company of Central New York, Syracuse, New York. Gentlemen: The Board of Governors extends to December 1, 1959, the time within Wilich Marine Midland Trust Company of Central New York, Syracuse, New York, may remove the branch now operating in temporary quarters at 3401 West Genessee Street to the southeast corner of the intersection of New York Route 5 and Onondaga Road in the unincorporated area of Fairmount, Town of Camillus, New York. The Board's letter of December 3, 1958, authorof this branch in temporary quarters establishment izing to the location as 2401 West Genessee referred erroneously West Genessee Street. 3401 of as instead Street Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, O. C. Item No. 2 4/27/59 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD April 27, 1959 Mr. Robert H. Craft, President, Chase International Investment Corporation, 18 Pine Street, New York 5, New York. Dear Mr. Craft: In accordance with the request contained in your letter of March 23, 1959, transmitted through the Federal extends to Reserve Bank of New York, the Board of Governors ion may Corporat your which April 29, 1960, the time within be orto ion corporat a in Purchase shares of capital stock al Industri as known be to ganized under the laws of Iran, 000, 35001 g exceedin not amount Development Bank of Iran, in an letter Board's the in ated subject to the understandingsst dated April 29, 1958. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS OF THE Item No. 3 4/27/59 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. ADORES:1B OFFICIAL CORRERPONOENCE TO THE BOARD April ZT, 1959 Board of Directors, First National Bank in Lake Worth, Lake Worth, Florida. Gentlemen: The Board of Governors of the Federal Reserve System has given consideration to your supplemental application for fiduciary Powers and gr, nts you 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, ?onmittee of estates of lunatics, or in any other fiduciary capacI Y in which State banks, trust companies, or other corporations Ignich coni into competition with national banks are permitted to act under the laws of the State of Florida. The exercise of such 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. In addition to the general fiduciary powers herein authorthe bank was granted specific authorizations on October 23, 1950, !? act as trustee of the Construction Fund Trust Agreement in contlecu4-on with the issue of ;11775,000 City of Lake liorth, Florida, Uater nd Electric Revenue Certificates, Serles 1950, dated Nayl, 1950; on 1 ,t01Der 20, 1953, to act as trustee for Profit-Sharing Retirement .1-all of First National Bank in Lake Worth, Florida; and on December 2, 957, to act as trustee of the Construction Fund Trust Agreement in eonnection with the issue of 01,630,000 City of Lake Worth, Florida, Etter and Electric Revenue Certificates, Series 1957, dated May 1, 1957. Z 1 A formal certificate indicating the fiduciary powers which st National Bank in Lake Worth is now authorized to exercise will be forwarded to you in due course. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS OF THE Item No. If 4/27/59 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. AODRESS OFFICIAL CORRESPONDENCE TO THE BOARD April 27, 1959 Board of Directors, High Ridge Bank High Ridge, Missouri. Gentlemen: The Board of Governors of the Federal Reserve System Missouri, aPProves the application of High Ridge Bank, High Ridge, ive if effect St. Louis, of Bank e for stock fi the Federal Reserv State riate approp under ss busine and when the bank opens for after set authorization, subject to the numbered conditions herein forth: 1. Such bank at all times shall conduct its business and exercise its powe:-s Lt_th due regard to the safety of its deposito-_-s; and, except with the permission of the Board of Governors of the Federal Reserve System, such bank shall not cause or permit any change to be made in the general character of its business or in the scope of the corporate powers exercised by it at the time of admission to membership. 2. The net capital and surplus funds of such bank shall be adequate in relation to the character and condition of its assets and to its deposit liabilities and other corporate responsibilities. of membership, In connection with the foregoing conditions ions of the Board's Particular attention is called to the provis g institutions HI regarding membership of State bankin to Section 7 In the Federal Reserve System, with especial reference thereof. A copy of the regulation is enclosed. to the bank's If at any time a change in or amendment the Federal Reserve Bank, Charter is made, the bank should advise ed, in order that it may furnishing copies of any documents involv be determined whether such change affects in anyway the bank's System. status as a member of the Federal Reserve contained in Acceptance of the conditions of membership Board d by adopte this letter should be evidenced by a resolution MMt BOARD High Ridge Bank OF GOVERNORS' OF THE FEDERAL RESERVE SYSTEM -2 Of Directors and spread upon its minutes, and a certified copy of such resolution should be filed with the Federal Reserve Bank. for an approArrangements will thereupon be made to accept payment the deposit accept to stock, Bank priate amount of Federal Reserve iate amount the appropr issue to and of the required reserve balance, bank. the of Federal Reserve Bank stock to The time within which admission to membership in the Federal .Reserve System in the manner described may be accomplished is limited Go Six months from the date of this letter, unless the bank applies to the Board and obtains an extension of time. When the Board is advised that all of the requirements have been complied with and that the appropriate amount of Federal Reserve Bank stock has been issued to the bank, the Board will forward to the bank a formal certificate of membersl-ip in the Federal Reserve System. The Board of Governors sincerely hopes that you will find ns with the Reserve membership in the System beneficial and your relatio will be glad Bank pleasant. The officers of the Federal Reserve Bank the Federal with nships to assist you in establishing your relatio s of your ntative represe with Reserve System and at any time to discuss you. to useful most System bank means for making the services of the Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. Enclosure. BOARD OF GOVERNORS OF THE 40co_cop;*,,, tW6'"-•- 0 kt% it ! * 4/27/59 WASF'INGTON 25. D. C. ea 1, : it04,,,____ *;(44 Item No. 5 FEDERAL RESERVE SYSTEM ADDRESS OFFICIAL CORRESPONDENCE to' It TO THE BOARD April 271 3.959 Comptroller of the Currency, l'Xieasury Department, washington 25, D. C. Attention Mr. W. M. Taylor, Deputy Comptroller of the Currency. 1/ear Mi. Comptroller: Reference is made to a letter from your office dated March 5, co 19-,) enclosing copies of an application of Peoples Bank of North Miami each, North Miami Beach, Florida, to convert into a national banking association and requesting a recommendation as to whether or not the aPPlication should be approved. This bank has been a member of the Federal Reserve System it opened for business on May 16, 1956; and, in view of the srve Bank's knowledge of the institution and the latest report of eZamination as of October 20, 1958, a field investigation of the apication was not regarded as necessary. Information in the records the Board of Governors and that supplied by the Federal Reserve 8191.41k of Atlanta is favorable with respect to the factors usually conI4dered in connection with such proposals, except operating earnings. esaPpears that expenses of operation have been much higher than was $26,000 of loss operating and for the year 1958 a net tillatained. It is believed, however, the favorable factors outweigh v? Poor earnings experience; and the Board recommends favorable con41srat1on of the application to convert into a national banking asso' °itttion. 81 aere n enlr A 4 The Board's Division of Examinations will be glad to discuss you so aspects of this case with representatives of your office if Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS OF THE Item No. FEDERAL RESERVE SYSTEM 6 4/27/59 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD April 27, 1959 pONFIDENTIAL(FR) Mr. W. D. Fulton, President, Federal Reserve Bank of Cleveland, Cleveland 1, Ohio. Dear Mr. Fulton: fhe Board of Governors approves the payment of salaries to the following officers of the Federal Reserve Bank of Cleveland, Lot the period May 1 through December 31, 1959, at the rates of Directors as indicated, which are the rates fixed byyour Board reported in your letter of April 10, 1959: Name John J. Balles Edward A. Fink Addison T. Cutler Harold H. Renz Annual Salary Title Vice President Vice President Special Economist Assistant Chief Examiner $16,000 14,000 12,000 11,500 Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary.
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