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678
Minutes of actions taken by the Board of Governors of the Federal Reserve System on Thursday, April 29, 1954.

The Board met in the

Board Room at 10:00 a.m.
PRESENT:

Mr.
Mr.
Mr.
Mr.
Mr.

Martin, Chairman
Szymczak
Evans
Mills
Robertson
Carpenter, Secretary
Sherman, Assistant Secretary
Kenyon, Assistant Secretary
Thurston, Assistant to the Board
Thomas, Economic Adviser to the Board
Leonard, Director, Division of Bank
Operations
Mr. Vest, General Counsel
Mr. Dembitz, Assistant Director, Division
of International Finance
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.

Before this meeting there had been circulated among the members
of the Board a memorandum from Mr. Leonard, Director, Division of Bcnk
Operations, dated April 27, 1954, regarding the building program for
the Baltimore Branch of the Federal Reserve Bank of Richmond, together
with a draft of telegram to Mr.

Leach, President of the Federal Reserve

Bank of Richmond, reading as follows:
Reurlet April 23, Board authorizes preparation of detailed
plans and specifications for proposed addition and alterations
to Baltimore Branch building on basis of preliminary plans and
outline specifications as modified. It is understood that upon
completion of detailed plans and specifications they will be
submitted to the Board for consideration prior to requesting
bids.




Approved unanimously.

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4/29/54

At Chairman Martin's request, Mx. Thomas reviewed the arrangements that had been made by the staff group working on the program for
the Fourth Meeting of Technicians of Central Banks of the American
Continent, to convene in Washington on Monday, May

3, 1954. There

followed a general discussion of the program for the meeting including
plans made for entertainment of the visiting delegates by means of a
trip from Washington to Richmond and Williamsburg, Virginia, on Friday
afternoon, May

7, and Saturday, May 8. During the course of the dis-

cussion, Chairman Martin suggested that Mr. Thomas be authorized by
the Board to complete the detailed arrangements referred to, including
the selection of not more than five members of the Board's staff to
accompany the delegates on the trip to Richmond and Williamsburg, with
the understanding that the Board would pay the costs of that trip for
such members of the Board's staff and their wives as might be designated
to go.
This suggestion was approved
unanimously.
At this point Messrs. Thomas and Dembitz withdrew from the meeting and Mr.

Bethea entered the room.

Governor Robertson outlined certain proposed revisions in the
plan for relocation of the Board's offices in the event of enemy attack,
these revisions having been made principally as a result of a request by
the Office of Defense Mobilization that the earlier plan be reviewed in




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4/29/54

-3-

terms of a relocation for a period of at least one year rather than three
months.

Governor Robertson stated that under the proposed revision in

the plan some

75 to 80 members of the Board's organization would be

designated to proceed to the relocation center in the event of an attack.
This total would compare with the designation of 41 individuals under the
plan approved by the Board on September 11, 1951 and revised April 1, 1953.
In this connection, Governor Robertson presented a list of individuals who
had been selected by the heads of the Board's offices and divisions for
assignment to the relocation center and he suggested that this list be
tentatively approved with the understanding that other names could be substituted if, for any reason, a substitution seemed to be desirable.

In

connection with the foregoing discussion, Governor Robertson stated that
a date had been selected for a test of the use of relocation centers by
various Government agencies and that it would be his recommendation that
when this test was made the members of the staff who had been working on
the relocation program be authorized to proceed to the relocation center
for the test.
Chairman Martin suggested that Governor Robertson be designated
as the Chairman's alternate in matters relating to plans for relocation
of operations in the event of enemy attack.
The suggestions of Chairman Mertin
and Governor Robertson were approved
unanimously.
Governor Robertson also suggested that, for reasons which

he

stated, the position occupied by Mr. Sherman, Assistant Secretary, be




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4/29/54

designated by the Board as "sensitive", with the understanding that this
would necessitate a full field investigation of Mr. Sherman pursuant to
the program established under Executive Order 10450.
Approved unanimously.
The meeting then adjourned.

During the day the following addi-

tional actions were taken by the Board with all of the members except
Governor Vardaman present:
Minutes of actions taken by the Board of Governors of the Federal
Reserve System on April 28, 1954, were approved unanimously.
Memorandum dated April 26, 1954, from

Mr. Carpenter, Secretary

of the Board, recommending that the resignation of Diane K. Vigeant,
Minutes Clerk in the Office of the Secretary, be accepted effective
April 30, 1954.
Approved unanimously.
Letter to Mr. Dawes, Vice President and Secretary, Federal Reserve
Bank of Chicago, reading as follows:
The Board of Governors approves the payment of salary
to Mr. Leland M. Ross as an officer of the Federal Reserve
Bank of Chicago with the title of Assistant Chief Examiner
effective June 1, 1954, at the rate of $10,000 per annum,
which is the rate fixed by the Board of Directors as indicated in your letter of April 23, 1954.
Approved unanimously.
Letter to The Chase National Bank of the City of New York, New
York, New York, reading as follows:
In view of your request submitted through the Federal
Reserve Bank of New York and the information contained in




632
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4/29/54

your letter dated April 21, 1954, the Board of Governors
extends to July 1, 1954, the time within which you may
establish an additional branch in Havana, Cuba, at
Amistad 304, under the authority granted in the Board's
letter of May 26, 1953.
Approved unanimously, for
transmittal through the Federal
Reserve Bank of New York.
Letter to the Board of Directors, The People's Bank Company,
Canal Winchester, Ohio, reading as follows:
Pursuant to your request submitted through the Federal
Reserve Bank of Cleveland, the Board of Governors approves
the establishment of a branch at 235 Front Street, Groveport,
Ohio, by The People's Bank Company, Canal Winchester, Ohio,
provided the branch is established by October 13, 1954.
Approved unanimously, for
transmittal through the Federal
Reserve Bank of Cleveland.
Letter to The Merchants Nntional BJ.nk of Terre Haute, Terre Haute,
Indiana, reading as follows:
The Board of Governors of the Federal Reserve System
has given consideration to your supplemental application for
fiduciary powers and grants you authority to act, when not
in contravention of State or local law, as registrar of
stocks and bonds, assignee, receiver, 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 Indiana. The
exercise of these powers, in addition to those heretofore
granted to act as trustee, executor, administrator, guardian
of estates, and committee of estates of lunatics, shall be
subject to the provisions of the Federal Reserve Act and the
regulations of the Board of Governors of the Federal Reserve
System.
A formal certificate indicating the fiduciary powers
which The Merchants National Bank of Terre Haute is now
authorized to exercise will be forwarded to you in due course.




Approved unanimously, for
transmittal through the Federal
Reserve Bank of Chicago.

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4/29/54

Letter to The First National Bank of Harlingen, Harlingen,
Texas, reading as follows:
The Board of Governors of the Federal Reserve System
has given consideration to your application for fiduciary
powers and grants 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, 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 Texas/ the exercise of
all such rights to be subject to the provisions of the
Federal Reserve Act and the regulations of the Board of
Governors of the Federal Reserve System.
A formal certificate indicating the fiduciary powers
which The First National Bank of Harlingen is now authorized to exercise will be forwarded to you in due course.
Approved unanimously, for
transmittal through the Federal
Reserve Bank of Dallas.
Telegram to Mr. Millard, Vice President, Federal Reserve

Bank

of San Francisco, reading as follows:
As recommended in your letter April 20 Board extends
151 1954/ time within which Security Trust &
June
to
Savings Bank of San Diego, San Diego, California, may
establish branch at southwest corner Fourth and University
Avenue, San Diego.
Approved unanimously.
Letter to Mr. Millard, Vice President, Federal Reserve Bank
of San Francisco, reading as follows:
Reference is made to your letter of April 16, 1954,
concerning a request of the American Trust Company, San
Francisco, California, for an extension of time within which
It may establish a branch on Alum Rock Avenue near White
Road in Santa Clara County.




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-7-

In view of the circumstances and your favorable
recommendation, the Board of Governors has approved an
extension to November 221 1954, of the time within which
the branch may be established. Please notify the bank
of this action.
Approved unanimously.
Letter to Mr. Fulton, President, Federal Reserve Bank of
Cleveland, reading as follows:
The Board will interpose no objection to the expenditure of approximately $275,000 for the program outlined in your letter of April 9, 1954, which involves the
following changes at the Head Office:
The conversion of the power requirement from DC to AC current.
The installation of standby equipment to serve the minimum needs of
the Bank for electricity in case of
emergencies.
The discontinuance of the Bank's
power plant.
It is noted that provision for the estimated expense
motors in conof $20,000 for replacing bank equipment
in the Bank's
made
not
was
ion
convers
nection with the
this unforeseen
of
n
iate
notatio
Appropr
budget for 1954.
of the budget.
copy
Board's
the
in
expenditure will be made




Approved unanimously.