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Minutes for To: Members of the Board From: Office of the Secretary August 13, 1955 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, 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. Chin. Martin Gov. Szymczak Gov. Vardaman Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Minutes of actions taken by the Board of Governors of the Federal Reserve System on Monday, August 13, 1956. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Martin, Chairman Vardaman Mills Robertson Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Kenyon, Assistant Secretary Leonard, Director, Division of Bank Operations Solomon, Assistant General Counsel Hackley, Assistant General Counsel Chase, Assistant General Counsel Hostrup, Assistant Director, Division of Examinations Masters, Assistant Director, Division of Examinations Thompson, Supervisory Review Examiner, Division of Examinations The following matters, which had been circulated to the members of the Board, were presented for consideration and the action taken in each instance was as stated: Letter to Mr. Shuford, Vice President and General Counsel, Federal Reserve Bank of Dallas, reading as follows: Reference is made to your letter of July 20, 1956, advising that the Executive Committee has authorized the adoption of the new hospital, medical, and surgical plan designated as the Blue Cross Preferred Service. The Board of Governors interposes no objection to the assumption of the increased expense by the Federal Reserve Bank of Dallas in connection with the adoption of the expanded plan as described in your letter. Approved unanimously. 56s3 8/13/56 -2- Letter to Mr. Wiltse, Vice President, Federal Reserve Bank of New York, reading as follows: Reference is made to your letter of July 31, 1956, transmitting the request of Bank of Westbury Trust Company, Westbury, New York, for an extension of time within which it may establish a branch on the southeast corner of Old Country Road and Linden Avenue, in an unincorporated area of the Town of Hempstead, New York. It is noted that various delays have been encountered by the applicant bank in obtaining suitable plans and contracts for the branch building but that its construction is now under way, and the branch should be ready to open for business in January 1957. After considering the information which you have submitted, the Board concurs in your recommendation and extends to January 31, 1957, the time within which the Bank of Westbury Trust Company may establish the branch. Approved unanimously. Letter to Mr. Thomas F. Glavey, Assistant Vice President, The Chase Manhattan Bank, New York, New York, reading as follows: This refers to your letter of July 17, 1956, transmitted through the Federal Reserve Bank of New York, acknowledging the Board's letter of July 3, 1956, regarding the removal of your Heidelberg Branch, referred to in your letter of June 14, 1956, as a military banking facility, to Army built premises located within the U. S. Army Shopping Center on "Czerny Ring" on the outskirts of Heidelberg, Germany. It is noted that the German authorities had never authorized your bank to operate a branch in Heidelberg, and that the facility which you had maintained at Rohrbacherstrasse 11 has never been more than a military banking facility, together with a military window which you opened at the same location. According to the Board's records, pursuant to a request from The Chase National Bank of the City of 569 8/13/56 -3- New York, the Board of Governors authorized on March 2, 1948, the establishment of a branch in Heidelberg, Germany. In a letter dated March 30, 1948, Vice President Alfred W. Barth advised that a branch of Chase National Bank had been opened on that date in Heidelberg, Germany, at Friedrich Ebert Aliee No. 1. In a letter dated March 4, 1952, Mr. Barth advised that the Heidelberg Branch would move on or about April 1, 1952, to Rohrbacherstrasse 11, Heidelberg; on March 12, 1952, the Board advised that it would interpose no objection to such change in location; and on April 8, 1952, Second Vice President L. Allan Bucher advised that your "branch at Heidelberg, Germany," began operations in its new quarters on April 7, 1952. However, based on the information contained in your letter of July 17, 1956, your Heidelberg office, heretofore shown as a branch, will be removed from the list of foreign branches of member banks in the Board's records as of July 10, 1956, and will be regarded henceforth as a military banking facility. It is understood that, in addition to the facility maintained at the U. S. Army Shopping Center on "Czerny Ring" on the outskirts of Heidelberg, you also have (1) a military banking facility at Campbell Barracks, which was originally regarded as a sub-office of the Heidelberg Branch, and (2) a Deutsche Mark conversion window at Rohrbacherstrasse 111 the former location of the Heidelberg Branch. Approved unanimously, for transmittal through the Federal Reserve Bank of New York. Letter to the Board of Directors, Lafourche National Bank of Thibodaux, Thibodaux, Louisiana, 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 for City of Thibodaux Construction Trust Fund Account, the exercise of such authority to be subject to the provisions of the Federal Reserve Act and the regulations of the Board of Governors of the Federal Reserve System. '7ft 5t 8/13/56 -4- A certificate covering such authorization is enclosed. Approved unanimously, for transmittal through the Federal Reserve Bank of Atlanta. Letter to the Board of Directors, Merchants and Mechanics Bank, Flint, Michigan, reading as follows: Pursuant to your request submitted through the Federal Reserve Bank of Chicago, the Board of Governors approves the establishment of a branch by Merchants and Mechanics Bank on Clio Road just south of the intersection with Pierson Road, Flint, Michigan, provided the branch is established within nine months from the date of this letter, and approval of the State authorities is effective as of the date the branch is established. It is understood that the bank plans to increase its capital account 43412,500 by the sale of additional common stock. While this is regarded as a step in the right direction in providing capital commensurate with the volume of the bank's risk assets, it is suggested that the matter of further augmenting capital receive your continuing attention. Approved unanimously, for transmittal through the Federal Reserve Bank of Chicago. Letter to Mr. Pondrom, Vice President, Federal Reserve Bank of Dallas, reading as follows: This refers to your letter of July 17, 1956, addressed to Mr. George S. Sloan, with respect to the motor bank now under construction by The First State Bank & Trust Company of Lufkin, Texas. It is noted that the motor bank will be located on property separated from the main banking quarters by a public alley; that the motor bank will be a twostory building connected with the banking quarters by 8/13/56 -5- an enclosed passageway to be used exclusively by bank employees; and that the motor bank is entered only by means of a spiral staircase running from this passageway to the tellers' windows below. In view of the fact that the proposed motor bank will be physically connected with the bank's building by a passageway under the complete control of the bank and not accessible to the general public, it is the view of the Board that the motor bank would in effect constitute a part of the bank's main banking quarters and that its operation would not involve the establishment of a branch. Approved unanimously. Letter to the Presidents of all Federal Reserve Banks reading as follows: Enclosed is a copy of an interpretation concerning the application of Regulation Q to certain forms of time deposit contracts. The interpretation will be published in early issues of the Federal Register and the Federal Reserve Bulletin. Approved unanimously. Secretary's Note: The interpretation referred to in the foregoing letter was contained in a letter to the Federal Reserve Bank of New York approved by the Board on July 19, 1956. Letter to the Comptroller of the Currency, Treasury Department, Washington, D. C., reading as follows: Reference is made to a letter from your office dated May 7, 1956, enclosing photostatic copies of an application to organize a national bank in Chicago, Illinois, under the title of Gateway National Bank of Chicago, and requesting a recommendation as to whether or not the application should be approved. eio 8/13/56 -6- Information contained in a report of investigation of the application made by a representative of the Federal Reserve Bank of Chicago indicates fairly satisfactory findings with respect to the factors usually considered in connection with such proposals. Accordingly, the Board of Governors recommends approval of the application. The Board's Division of Examinations will be glad to discuss any aspects of this case with representatives of your office if you so desire. Approved unanimously. Letter for the signature of the Chairman to The Honorable Wayne L. Hays, Chairman of the Subcommittee to Study Federal Printing and Paperwork, The Capitol, Washington, D. C., reading as follows, the enclosure to which contained information responsive to a number of questions concerning the Board's publications: There are enclosed replies to the questions which you outlined for use by the Subcommittee to Study Federal Printing and Paperwork in your letter of June 29, 1956. If further information should be desired, we shall be glad to have you communicate with Mt. Elliott Thurston, Assistant to the Board. Approved unanimously. Chairman Martin stated that Er. Smith, Chairman of the Federal Reserve Bank of Dallas, recently called attention to the schedule of fees and allowances payable to directors of Federal Reserve Bank branches, as stated in the Board's letter s-959, dated February 7, 1947, and sug- gested that consideration be given to increasing the fee for attendance at meetings to the same level as the fee established for head offic,, directors. ; 8/13/56 -7Following a brief discussion, it was understood that the Secretary would explore the matter and submit recommendations to the Board for consideration. Reference was made to the following draft of letter to Mr. Ralph R. Emery, Vice President and Cashier of the American Trust Company, San Francisco, California, which had been circulated to the members of the Board prior to this meeting: Reference is made to your letter of May 4, 1956, addressed to Mr. E. R. Millard, Vice President, Federal Reserve Bank of San Francisco, requesting authority to resume exchange office agency operations aboard the S.S. Mariposa and S.S. Monterey, when their runs from San Francisco to Australia are re-established by The Oceanic Steamship Company in October 1956. These services were formerly provided by your bank on these ships from 1935 until the outbreak of war in the latter part of 1941. It is understood that the method of operation of the agencies provides for a representative of your bank on each of the ships who is to perform the following functions, as described in your letter of May 4, 1956: 1. 2. 3. 4. 5. 6. Purchase and sale of foreign currency against U. S. dollars. Purchase and sale of travelers checks in dollars and pounds. Encashment of drafts under letters of credit in dollars and foreign currency. Encashment of personal checks and bank drafts in dollars and foreign currency. Sale of American Express Company money orders in U. S. dollars. Sale of foreign stamps, i.e., Fiji, New Zealand, Australian, and Tahitian. i r4 8/13/56 -87. Purchase and sale of foreign currency, i.e., Fiji, 8. Australian, New Zealand, and Tahitian, in respective countries' equivalent in U. S. dollars to be credited to the foreign bank's account covering purchases and equivalent in U. S. dollars to be paid by foreign correspondents covering sales. Trading in foreign currency, i.e., trading Fiji pounds for Australian pounds, New Zealand pounds for Fiji pounds, etc. It is understood that these are the same services provided prior to the war with the exception that Tahitian franc currency will be handled, as Tahiti will be a port of call, whereas it was not when you previously operated on these ships. It is understood that these agencies will not accept deposits or lend money although they will negotiate or purchase checks. However, it is understood that the agencies will not negotiate or accept checks or other negotiable instruments drawn on the Head Office or any branch of American Trust Company, and that they will not advance funds to customers of your bank or any branch thereof except against non-negotiable receipts. It is also understood that on May 2, 1956, Mr. William A. Burkett, Superintendent of Banks of the State of California, approved the resumption by your bank of the activities previously provided on the S.S. Mariposa and S.S. Monterey when they are again placed in operation on the Australian run. On the basis of the information supplied and the Board's understanding of the matter as indicated above, it is the Board's view that the proposed agencies will not constitute branches within the meaning of sections 9 and 25 of the Federal Reserve Act, and no approval by the Board of Governors will be necessary for the establishment and operation of the exchange office agency operations. In the circumstances, the Board interposes no objection to such operations. However, should there be any substantial change in the method of operation of the agencies, it is requested that the facts be reported to the Board, through the Federal Reserve Bank of San Francisco, in order that the Board may determine whether, under such changed method of operation, the agencies constitute branches requiring the approval of the Board. 1_. 8/13/56 It is requested that you inform the Board, through the Federal Reserve Bank of San Francisco, when the agency operations are resumed on each of the ships. In a discussion of the request of the American Trust Company, Governor Vardaman spoke of having heard recently that the possibility was being discussed of providing exchange office agencies on various Transatlantic vessels. He inquired whether there appeared to be any reasons for objecting to the practice. In response, Governor Robertson commented that the Board would not be establishing a Precedent in granting authority to the American Trust Company to provide this service aboard the two vessels of The Oceanic Steamship Company since, as the proposed letter indicated, this practice was permitted for a number of years on these ships prior to the outbreak of war in the latter part of 1941. As he saw the situ- ation, there was no strong reason why exchange office agency operations Should not be provided on any ship if a bank was interested in offering the service. He brought out that such an agency would not accept de- Posits or lend money, so that the operation would be essentially a service function. It seemed possible, he said, that national banks would not be able to offer this service because of the restrictions contained in pertinent statutes. He understood that the Office of the Comptroller of the Currency was reviewing the situation to determine Whether a change in the law was necessary and that, if it should be so i576 -10- 8/13/56 determined, a recommendation might be included among the various legislative suggestions which the Comptroller's Office would send to the committee headed by Senator Robertson in connection with that committee's current study of the Federal statutes relating to banking and credit. Thereupon, the proposed letter to the American Trust Company was approved unanimously, for transmittal through the Federal Reserve Bank of San Francisco. There were presented telegrams proposed to be sent to the t t following Federal Reserve Banks approving the establishmen withou se Change on the dates indicated of the rates of discount and purcha in their existing schedules: St. Louis San Francisco New York Cleveland Richmond Chicago Kansas City Minneapolis Dallas August August August August August August August August August 6 8 9 9 9 9 9 9 9 Approved unanimously. the Board prior to this There had been sent to the members of dated August 10, 1956, Meeting copies of a memorandum from Mr. Chase Counsel for the Board in the discussing plans of Mr. Powell, Special Company, Salt Lake City, Matter of The Continental Bank and Trust Utah, to call expert witnesses for testimony regarding the adequacy 1577 -U- 8/13/56 of the bank's capital and requesting that Mr. Powell be authorized to make commitments to such witnesses for fees and expenses. It was noted that some of the witnesses that Mr. Powell expected to use would be Government officials and would therefore not receive any compensation except reimbursement for travel and subsistence. It was also stated that the compensation usually regarded as reasonable for expert witnesses in cases of this kind was in the area of $150 to .1;250 per day for time devoted to preparation and to testifying. On this basis, it appeared that the total amount needed to cover the fees and exPenses of the expert witnesses would be in the neighborhood of *15,000. Following comments by Governor Vardaman to the effect that the fees paid to the expert witnesses should be on a scale similar to fees Paid by other Government agencies, Mr. Chase indicated that the scale mentioned in his memorandum was believed to be the "going rate" for witnesses having qualifications of the kind required in this case. He pointed out that if the Board had the power to subpoena such witnesses, they would be paid at the statutory rate. Without the subpoena Power, the fee would depend on a number of factors to be worked out in each individial case, but the intention would be to pay the lowest rate at which the respective witnesses could be obtained. In reply to a question by Governor Vardaman, he said that it should be possible to 8/13/56 -12- secure certain helpful information from other Government agencies regarding the rates paid in proceedings of a somewhat similar nature. Following further discussion, Chairman Martin requested that the record reflect the view of the Board that every effort should be made to keep the total charges within reason and to keep the fees in line with "going rates". Thereupon, Mr. Powell was authorized to make commitments to expert witnesses on the basis outlined in Mr. Chase's memorandum. Mr. Chase then withdrew from the meeting. There had been distributed to the members of the Board copies Of a suggested telegram to the Presidents of all Federal Reserve Banks relating to reimbursement for out-of-pocket expenses incurred for certain work requested by the Treasury Department in connection with the freezing of Egyptian accounts under a recent order of that Department. Attached to the proposed wire was a memorandum dated August 2, 19561 from Mr. Katz, Chief of the British Commonwealth, Scandinavia, and Near East Section in the Division of International Finance, which indicated that the question of reimbursement had been raised by the Federal Reserve Bank of Boston following receipt of the Treasury order. It appeared that the expenses of the Reserve Banks, except perhaps at new York and San Francisco, would consist principally of printing and mailing charges. 15798/13/56 -13In commenting on the matter, Mr. Leonard said that the request made of the Reserve Banks by the Treasury was not known to the Board's staff until receipt of a telephone call from the Federal Reserve Bank Of Boston, that the request involved sending a notification concerning the Treasury order to commercial banks in the respective Reserve Districts, that the Treasury apparently would prefer that the service be Provided without reimbursement, but that the service was definitely Of a type for which the Federal Reserve Banks had taken the position that reimbursement should be obtained. Governor Robertson said that although he would have no objection to the proposed telegram in this instance, he wished to inquire whether as a matter of general practice it was appropriate for the Board to send a wire to the Reserve Banks containing a suggestion as to reimbursement made by the Chairman of the Committee on Fiscal Agency Operations of the Presidents' Conference. He asked, in other words, whether it would not be preferable for the Board to make such a suggestion or, in the alternative, for the Chairman of the Conference Committee to advise the Federal Reserve Banks. In response, Mr. Leonard discussed the background of the procedure under which the Treasury deals directly with the Conference Committee on most matters pertaining to reimbursement for specific fiscal agency functions. He indicated that while there was much to 8/13/56 -14- be said for this procedure, there were some advantages in keeping the Board's staff informed as to developments due to the problems of interpretation and accounting practices involved. In this particular case, he said, there would be no objection to recasting the proposed telegram, if the Board so desired, in terms of stating that the question of reimbursement had been raised with the Board, suggesting a basis for reimbursement, and stating that this suggestion was made with the concurrence of the Chairman of the Committee on Fiscal Agency Operations. In a further discussion based on the point raised by Governor Robertson, reference was made to the lack of specific statutory authority on the part of the Board in the area of Reserve Bank fiscal agency Operations. General agreement was expressed with the view that it would be desirable at the proper time to clarify the role of the Board and of the Federal Reserve Banks in matters of the at kind considered this meeting. Thereupon, unanimous approval was given to a telegram from Mr. Leonard to the Presidents of all Federal Reserve Banks reading as follows: All Reserve Banks are being hereby informed that Mr. Leach, acting as Chairman of the Committee on Fiscal Agency Operations, suggests that reimbursement be claimed for out-of-pocket expenses incurred for foreign assets 1581 8/13/56 -15- control work recently requested by Mr. Arnold of the Treasury Department, but that no claims be made for regular salary charges unless they are more than nominal. Such vouchers should be addressed to Mr. Walter F. White, Acting Executive Officer, Foreign Assets Control, Room 5311 Main Treasury Building, Washington 25, D. C. Mr. Leonard then withdrew from the meeting. At the suggestion of Governor Vardaman there had been sent to the members of the Board copies of an editorial which appeared in the jlalY 22, 1956, issue of Barron's relating to the responsibilities of the commercial banking system from the standpoint of lending policies, including the conformity of such operations to national monetary policy. Governor Vardaman said that the article had provoked a great deal of comment in banking circles and that his only purpose in suggesting distribution was to assure that it was brought to the attention of the other members of the Board. At this point Mr. Clifford Davis of the legal staff of the Federal Reserve Bank of New York (currently assisting the Board on bank holding company matters) entered the room. Reference was made to a suggested letter to the Federal Reserve lanks, which had been circulated to the members of the Board, relating to recent action on the part of the Trust Division of the American • 1582 8/13/56 -16- Bankers Association in amending Article V of its Statement of Principles Of Trust Institutions, which is included as an Appendix to Regulation F, Trust Powers of National Banks. The letter would propose that inserts carrying the amended provisions of Article V be affixed to copies of the regulation now in stock. The amendment, designed to eliminate any question of possible conflict between the Statement of Principles and the Federal anti-trust laws, was the subject of discussion at the meeting of the Board on May 14, 1956. In response to an inquiry, Mr. Masters stated that several possible aMendments to Regulation F were now under consideration by the Board's Staff and there was also a need for general revision of the regulation. Re indicated that the staff would give further attention to these matters as soon as possible and would submit recommendations to the Board. In the circumstances, it was suggested that no action to rec°gnize the amendment to the Statement of Principles be taken at this time, with the understanding that when other proposals for changes in Regulation F came before the Board consideration would be given to various alternatives in respect to the Statement of Principles, including the possibility of eliminating it from the appendix to the reeulation. At the conclusion of the discussion, unanimous agreement was expressed with this suggestion. 8/13/56 -17Mr. Masters then withdrew from the meeting. At this point consideration was given to the following memoranda. which had been circulated to the members of the Board: Memorandum from the Division of Examinations dated July 27, 1956, recommending, for reasons stated, denial of an application by Northwest Bancorporation, Minneapolis, Minnesota, for the Board's Prior approval of acquisition of all capital stock except directors' qualifying shares of the proposed Airport Northwestern National Bank Of Minneapolis. Memorandum dated August 2, 1956, from Mr. Lamphere, Assistant General Counsel of the Federal Reserve Bank of Chicago (then assisting the Board in connection with hank holding company matters), indicating the concurrence of the Legal Division in the conclusions reached by the Division of Examinations and recommending that a letter be sent to the applicant extending an opportunity to submit any additional information or to request a formal hearing before action by the Board On the application. Memorandum dated August 1, 1956, from the Division of Examinations, recommending the issuance of a general voting permit to Northwest ! - ancorporation covering its stock of the proposed Airport Northwestern National Bank in the event that the Board should issue an order permitting Northwest Bancorporation to acquire a majority of the outstanding shares of the proposed national bank. Governor Robertson made a statement in which he summarized arguments for and against approving the application submitted by Northwest Bancorporation under the Bank Holding Company Act. He said that the case was a difficult one on which to make a decision and that it deserved careful consideration by the Board in the light of the standprescribed in the new holding company legislation. It was his view that the Board should not deny the application until the applicant had been given full opportunity to submit all of the information 1..5S 8/13/56 -18- and arguments that it desired to present, including information which would demonstrate a stronger need for banking facilities in the area than appeared to be the case from available data. With respect to a draft of letter to Northwest Bancorporation which had been circulated with the file on the matter, he suggested eliminating a phrase which would require the organization to submit such additional material Within a period of ten days from the date of the letter. In response to a question by Chairman Martin as to whether the Federal Reserve Bank of Minneapolis had been kept fully informed as to developments, Mr. Hostrup summarized telephone conversations which he had had with Mr. McConnell, Vice President of the Reserve Bank. Mr. Hackley then summarized certain factors which had caused the Legal Division to concur in the recommendation of the Division of Examinations that the application of the Northwest Bancorporation not be aPproved on the basis of available information. He emphasized the fact that a report by the Federal Reserve Bank of Minneapolis cast doubt on whether a compelling need for the proposed bank existed at the present time. This, he said, raised a question as to the weight Which should be given to the possibility of action designed to preempt a site as protection against competition in the future. In view of this factor, along with other aspects of the case, he felt that the Matter was deserving of full consideration, particularly from the standof the precedent which would be established by the Board's action. 15 -19- 8/13/56 Governor Vardaman indicated that although he would not object to a procedure under which Northwest Bancorporation would be requested to submit additional information for the Board's benefit in arriving at a determination as to whether the application should be approved, it was his feeling on the basis of the data now in the record that the factors cited as reasons for denying the application were not sufficiently strong to warrant such action. In particular, he ex- pressed doubt concerning the propriety of basing a denial of such an application on an alleged preempting of a site against the possibility Of future competition, stating that in his opinion this factor deserved much less consideration than questions relating to the existing competitive situation. the banking He suggested that in an area having characteristics of Minneapolis, it was doubtful whetheranyindependent group would undertake to establish a bank in a location such as the site of the proposed Airport Northwestern National Bank. Chairman Martin referred to the portion of the last paragraph Of the proposed letter to Northwest Bancorporation which would state that the Board had not yet reached any conclusion in the matter and would provide an opportunity to supply additional information before further consideration of the application. He then discussed some of the problems which would confront the Board in making required deterexpressed concurrence minations under the Bank Holding Company Act and isc 8/13/56 in the view that the Board should give careful study to the current application before coming to a conclusion. Thereupon, unanimous approval was given to a letter to Northwest Bancorporation reading as follows, for transmittal through the Federal Reserve Bank of Minneapolis, with the understanding that if the Board should later approve the application to acquire voting shares of the proposed Airport Northwestern National Bank, the application of Northwest Bancorporation for a general voting permit covering stock of such bank owned or controlled by it also would be approved: Reference is made to the application now pending before the Board pursuant to the Bank Holding Company Act of 1956, for approval of the acquisition by your company of voting shares of Airport Northwestern National Bank of Minneapolis, Minneapolis, Minnesota. ed Investigation of the matter has been complet the before and there are indications in the material Board that the application should be denied on the general grounds that there is no compelling need for the proposed new bank and that, in view of the present in the concentration of your company's system of banks d propose the area concerned, acquisition of stock of of ion expans bank by your company would result in an the size and extent of the company's system of banks in the area beyond limits consistent with the public the interest and the preservation of competition in field of banking. The Board has not reached any conclusion in this matter. Before further consideration of the application, it will be appreciated if you will advise the Board you would whether there is any additional material which t that reques like to submit or whether you would like to g hearin before the Board consider the holding of a formal it acts on the application. 8/13/56 -21The meeting then adjourned. Secretary's Note: On August 10, 1956, Governor Shepardson approved the following items on behalf of the Board: Memorandum dated August 7, 1956, from Mr. Carpenter, Secretary Of the Board, recommending the appointment of Betty P. Long as Records Clerk in the Office of the Secretary, with basic salary at the rate Of ;')3,415 per annum, effective the date she assumes her duties. Memorandum dated August 10, 1956, from Mr. Young, Director, Division of Research and Statistics, recommending the appointment of Earl C. Hald as Economist in that Division, with basic salary at the rate Of , T)10,320 per annum, effective the date he assumes his duties. Memorandum dated August 2) 1956, from Mr. Noyes, Adviser, Divi81011 of Research and Statistics, recommending the appointment of Eithne .,arY Tabor as Editorial Clerk in that Division, with basic salary at he rate of $3,415 per annum, effective the date she assumes her duties. Pursuant to the recommendation contained in a memorandum dated August 10, 1956, from Mr. Young, Director, Division of Research and Statistics, Governor Robertson, acting as alternate to Governor Shepardson, today approved the appointment of Harold F. Golding as Clerk in that Division on a temporary basis, with basic salary at the rate of e;)4,075 per annum, effective the date he assumes his duties and continuing to October 1, 1956.
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