Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, August 17, 1965, Volume 52, Part 8

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Minutes for

To:

Members of the Board

From:

Office of the Secretary

August 17, 1965

tes of the
Attached is a copy of the minu
System on
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Board of Governors of the Federal
the above date.
a statement
It is not proposed to include
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this
in
with respect to any of the entries
ired to
requ
ons
minutes in the record of policy acti
ral
Fede
the
of
10
be maintained pursuant to section
Reserve Act.
with regard to
Should you have any question
you will advise
if
the minutes, it will be appreciated
se initial
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e,
the Secretary's Office. Otherwis
your
ing,
meet
below. If you were present at the
If
tes.
minu
the
initials will indicate approval of
cate
indi
will
you were not present, your initials
only that you have seen the minutes.

Chin. Martin
Gov. Robertson
Gov. Balderston
Gov. Shepardson
Gov. Mitchell
Gov. Daane
Goy. Maisel

-ye -to
f tJ

Minutes of the Board of Governors of the Federal Reserve
System on Tuesday, August 17, 1965.

The Board met in the Board Room

at 10:00 a.m.
PRESENT:

Mr.
Mr.
Mr.
Mr.

Balderston, Vice Chairman
Robertson
Shepardson
Maisel
Mr. Kenyon, Assistant Secretary
Mr. Farrell, Director, Division of Bank
Operations
Mr. Johnson, Director, Division of Personnel
Administration
Mr. Hexter, Assistant General Counsel
Mrs. Semia, Technical Assistant, Office of
the Secretary
Mr. McClintock, Supervisory Review Examiner,
Division of Examinations

Discount rates.

The establishment without change by the

Federal Reserve Bank of Boston on August 16, 1965, of the rates on
discounts and advances in its existing schedule was approved unanimously, with the understanding that appropriate advice would be sent
to that Bank.
Circulated items.

The following items, copies of which are

attached to these minutes under the respective item numbers indicated,
were approved unanimously:
Item No.
Letter to Bankers Trust Company, New York, New
York, approving the establishment of a branch
at West 235th Street and Johnson Avenue.

1

Letter to The First Pennsylvania Banking and
Trust Company, Philadelphia, Pennsylvania,
approving the establishment of a branch in a
Proposed shopping center bounded by Red Lion,
Calera, Cromwell, and Academy Roads.

2

8/17/65

-2Item No.

Letter to Union Bank and Trust Company, Grand
Rapids, Michigan, approving the establishment
of a branch in the village of Ada.

3

Letters to First Independent Bank, Vancouver,
Washington, approving the establishment of
branches in Minnehaha and Orchards.

4-5

Letter to Dothan Bank & Trust Company, Dothan,
Alabama, approving an extension of time to
establish a branch in the Porter Square
Shopping Center.

6

Letter to the Federal Reserve Bank of Atlanta
regarding the cost of preparing for automobile
Parking the recently-acquired additional property
at the new building site for the New Orleans
Branch.

7

Letter to the Federal Reserve Bank of New York
approving the payment of salaries to Ronald B. Gray
and Arthur A. Randall, Assistant Cashiers at the
Buffalo Branch, at the rates fixed by the Bank's
Board of Directors.

8

Data on banking offices in major cities.

Governor Robertson

suggested that it would be of interest to have current figures on the
number of banking offices in relation to population in major cities,
and it was understood that such data would be compiled by the Division
of Examinations.
The meeting then adjourned.
Secretary's Note: Governor Shepardson today
approved on behalf of the Board the following
items:
dated
Memorandum from the Division of Research and Statistics
position
economist
additional
an
that
g
August 10, 1965, recommendin
be established in the National Income, Labor Force, and Trade Section
of that Division.

8/17/65

A.0

Letter to the Federal Reserve Bank of Cleveland (attached Item
approving the appointment of Gerald W. Frank as assistant
examiner.
Memoranda recommending the following actions relating to the
Board's staff:

AuataLITEIE
Woodard Collier, Jr., as Messenger, Division of Administrative
Services, with basic annual salary at the rate of $3,385, effective
the date of entrance upon duty.
Priscilla Ormsby as Economist, Division of Research and Statistics,
With basic annual salary at the rate of $7,955, effective the date of
entrance upon duty.

Assistant Secreta

Item No. 1
8/17/65

BOARD OF GOVERNORS
OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON, 0. C. 20531
ADDRESS orriatAL CORREOPONDENCE
TO THE BOARD

August 17, 1965

Board of Directors,
Bankers Trust Company,
New York, New York.
Gentlemen:
The Board of Governors of the Federal Reserve
System approves the establishment by Bankers Trust
Company, New York, New York, of a branch on the northeast corner of the intersection of West 235th Street
and Johnson Avenue, Bronx County, New York, New York,
provided the branch is established within one year
from the date of this letter.
Very truly yours,
(Signed) Karl E. Bakke

Karl E. Bakke,
Assistant Secretary.

the
(The letter to the Reserve Bank stated that
extension
Board also had approved a six-month
of the period allowed to establish the branch;
,
and that if an extension should be requested
letter
Board's
the procedure prescribed in the
be followed.)
of November 9, 1962 (S-1846), should

BOARD OF GOVERNORS

Item No. 2
8/17/65

OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORREEIPONOENCE
TO THE BOARD

August 17, 1965

Board of Directors,
The First Pennsylvania Banking
and Trust Company,
Philadelphia, Pennsylvania.
Gentlemen:
The Board of Governors of the Federal Reserve System
approves the establishment by The First Pennsylvania Banking
and Trust Company, Philadelphia, Pennsylvania, of a branch on
the south side of Red Lion Road west of Calera Road in a proposed shopping center bounded by Red Lion, Calera, Cromwell,
and Academy Roads, Philadelphia, Pennsylvania, provided the
branch is established within one year from the date of this
letter.
Very truly yours,
(Signed) Karl E. Bakke

. Karl E. Bakke,
Assistant Secretary.

(The letter to the Reserve Bank stated that the
Board also had approved a six-month extension
of the period allowed to establish the branch;
and that if an extension should be requested,
the procedure prescribed in the Board's letter
of November 9, 1962 (S-1846), should be followed.)

Item No. 3
8/17/65

BOARD OF GOVERNORS
OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
AOORCSIII OFFICIAL CORPIESPONOIENCIE
TO THE •0A010

August 17, 1965

Board of Directors,
Union Bank and Trust Company,
Grand Rapids, Michigan.
Gentlemen:
The Board of Governors of the Federal Reserve System
approves the establishment by Union Bank and Trust Company,
Grand Rapids, Michigan, of a branch near the intersection of
Ada Drive and Fulton Street in the unincorporated village of
Ada, Ada Township, Kent County, Michigan, provided the branch
is established within six months from the date of this letter.
An analysis of the capital structure of the bank indicates that present volume of capital funds is substantially
below the desirable minimum amount, and the Board wishes to
emphasize the need for a program to provide additional capital
funds. It is understood that the matter is to be discussed in
the near future with President Scanlon and Vice President Ross
of the Federal Reserve Bank of Chicago.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
that the
(The letter to the Reserve Bank stated
extension
Board also had approved a six-month
branch;
of the period allowed to establish the
requested,
and that if an extension should be
the procedure prescribed in the Board's letter
of November 9, 1962 (S-1846), should be followed.)

C

BOARD OF GOVERNORS

Item No. 4
8/17/65

OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
AOC/RENS OFFICIAL CORRESPONDENCE
TO THE BOARD

August 17, 1965

Board of Directors,
First Independent Bank,
Vancouver, Washington.
Gentlemen:
The Board of Governors of the Federal Reserve
System approves the establishment by First Independent
Bank, Vancouver, Washington, of a branch in the vicinity
of the intersection of N.E. 45th Street and N.E. Saint
Johns Road, Minnehaha, Clark County, Washington, provided the branch is established within one year from the
date of this letter.
Very truly yours,
(Signed) Karl E. Bakke
. Karl E. Bakke,
Assistant Secretary.

that the
(The letter to the Reserve Bank stated
extension
six-month
Board also had approved a
the branch;
of the period allowed to establish
,
requested
be
should
and that if an extension
letter
Board's
the
the procedure prescribed in
should be followed.)
of November 9, 1962 (S-1846),

BOARD OF GOVERNORS

Item No. 5
8/17/65

OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ACIDNESS OFFICIAL CORRESPONDENCE
TO THE •DARD

August 17, 1965

Board of Directors,
First Independent Bank,
Vancouver, Washington.
Gentlemen:
The Board of Governors of the Federal Reserve
System approves the establishment by First Independent
Bank, Vancouver, Washington, of a branch in the
vicinity of the intersection of N.E. Fourth Plain'
Boulevard and N.E. 109th Avenue, Orchards, Clark County,
Washington, provided the branch is established within
one year from the date of this letter.
Very truly yours,
(Signed) Karl E. Bakke

Karl E. Bakke,
Assistant Secretary.

the
(The letter to the Reserve Bank stated that
Board also had approved a six-month extension
branch;
of the period allowed to establish the
requested,
and that if an extension should be
letter
the procedure prescribed in the Board's
of November 9, 1962 (S-1846), should be followed.)

BOARD OF GOVERNORS

Item No. 6
8/17/65

OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS

arriciAL. CORRESPONDENCE
TO THE MORRO

August 17, 1965

Board of Directors,
Dothan Bank & Trust Company,
Dothan, Alabama.
Gentlemen:
The Board of Governors of the Federal Reserve System
has approved an extension until September 25, 1965, of the time
Within which Dothan Bank & Trust Company may establish a branch
in the Porter Square Shopping Center, 828 West Main Street,
Dothan, Alabama. The establishment of this branch was authorized
in a letter dated August 25, 1964.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secreta y.

BOARD OF GOVERNORS

Item No. 7
8/17/65

OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551

AoontEss orrtchm. CORRESPONDENCE
TO THE •ORRD

August 17, 1965

Mt. Malcolm Bryan, President,
Federal Reserve Bank of Atlanta,
Atlanta, Georgia. 30303
Dear Mr. Bryan:
r
This refers to the August 4 lette
T.
d
Harol
el
Vice President and General Couns
automobile
concerning costs of preparing for
rty at the
prope
recently acquired additional
site for the New Orleans Branch.

from First
Patterson
parking the
new building

ated cost,
The Board notes that the estim
of the security
side
the
including limestone facing for
garage, is about $92,900.
Very truly yours,
(Signed) Kenneth A. Kenyon
. Kenneth A. Kenyon,
Assistant Secretary.

BOARD OF GOVERNORS

Item No. 8
8/17/65

OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON I 0. C. 20551
ADORERS OFFICIAL CORRESPONDENCE
TO THE •DARD

August 17, 1965

CONFIDENTIAL (FR)

•

'W. William F. Treiber,
First Vice President,
Federal Reserve Bank of New York,
New York, New York.
10045
Dear Mt. Treiber:
The Board of Governors approves the payment of salaries to
the following officers of the Buffalo Branch of the Federal Reserve
Bank of New York, for the period August 1 through December 31, 1965:

Name
Ronald B. Gray
Arthur A. Randall

Title

Annual
Salary

Assistant Cashier
Assistant Cashier

$13,750
14,500

The rates approved by the Board are those fixed by your
Board of Directors as reported in your letter of July 29.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.

*720

BOARD OF GOVERNORS
OF THE

FEDERAL RESERVE SYSTEM

Item No. 9
8/17/65

WASHINGTON, D. C. 20551
AOORCIIS OrrICIAL cawacsromocmcir
TO THC COACIO

August 18, 1965

Hr. Harry W. Huning, Vice President,
Federal Reserve Bank of Cleveland,
44101
Cleveland, Ohio.
Dear Mr. Huning:
In accordance with the request contained in
your letter of August 11, 1965, the Board approves the
appointment of Gerald W. Frank as an assistant examiner
for the Federal Reserve Bank of Cleveland. Please
advise the effective date of the appointment.
Very truly yours,
(Signed) Elizabeth L. Carmichael

Elizabeth L. Carmichael,
Assistant Secretary.