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Minutes for To: Members of the Board From: Office of the Secretary August 18, 1961 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, please initial below. If you were present at the meeting, your initials will indicate approval of the minutes. If You were not present, your initials will indicate only that you have seen the minutes. Chin. Martin Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. King Minutes of the Board of Governors of the Federal Reserve System Ott Friday, August 18, 1961. PRESENT: Mr. Mr. Mr. Mr. The Board met in the Board Room at 10:00 a.m. Martin, Chairman Balderston, Vice Chairman Mills King Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Kenyon, Assistant Secretary Molony, Assistant to the Board Fauver, Assistant to the Board Noyes, Director, Division of Research and Statistics Holland, Adviser, Division of Research and Statistics Knipe, Consultant to the Chairman Spencer, General Assistant, Office of the Secretary Axilrod, Economist, Division of Research and Statistics Mr. Holmes, Manager, Securities Department, Federal Reserve Bank of New York Money market review. Mr. Holmes commented on the Federal budget °I1t100k and recent developments in the Government securities market, l'°110wing which Mr. Axilrod presented a report on bank credit, the money sill)PlY, and related matters. At the conclusion of these reports, all members of the staff 3ccePt Messrs. Kenyon and Spencer withdrew from the meeting and the r°110wing entered the room: Mr. Hackley, General Counsel Mr. Masters, Associate Director, Division of Examinations Mr. Benner, Assistant Director, Division of Examinations Discount rates. The establishment without change by the Federal Banks of New York, Philadelphia, Chicago, St. Louis, Minneapolis, cle 40e -2- 8/18/61 44a San Francisco on August 17, 1961, of the rates on discounts and eflvances in their existing schedules was approved unanimously, with the 1111detanding that appropriate advice would be sent to those Banks. Items circulated to the Board. The following items, which had been circulated to the Board and copies of which are attached to these nlinutes under the respective item numbers indicated, were approved 1111ala1mous1y: Item No. Lett-er to The Union Commerce Bank, Cleveland, aPproving an extension of time to establish uranch and a drive-in unit in Maple Heights. 1 utter to The First National Bank and Trust IPenY of Vinita, Vinita, Oklahoma, approving ms aPPlication for fiduciary powers. 2 Lett ,-er to the Federal Deposit Insurance Corpo- Z`lon regarding the application of Panhandle s .une Bank, Borger, Texas, for continuation of sirsit insurance after withdrawal from member4 in the Federal Reserve System. 3 Letter to Southern Arizona Bank and Trust Company, Son, Arizona, approving the establishment of a b. '"ch at Valencia Road and South 12th Avenue. 14. The meeting then adjourned. A Assistant Secretary t BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 1 8/18/61 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD August 18, 1961 Board of Directors, The Union Commerce Bank, Cleveland, Ohio. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Cleveland, the Board of Governors has approved an extension until November 24, 1961, of the time Within which The Union Commerce Bank may establish a branch and drive-in unit at the Southgate Shopping Center, Maple Heights, Ohio. Establishment of these branches was authorized in a letter dated February 24, 1961. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE Item No. 2 8/18/61 FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS arriciAL CORRESPONDENCE TO THE BOARD August 18, 1961 Board of Directors, The First National Bank and Trust Company of Vinita, Vinita, Oklahoma. Gentlemen: The Board of Governors of the Federal Reserve System has given consideration to your supplemental application for not in fiduciary powers and grants you authority to act, when ar of contravention of State or local law, as trustee, registr ry fiducia other any in or r, receive , stocks and bonds, assignee corcapacity in which State banks, trust companies, or other banks l nationa with tion competi porations which come into . permitted to act under the laws of the State of Oklahoma. ar,re he exercise of such rights shall be subject to the provisions °I Section 11(k) of the Federal Reserve Act and Regulation F of the Board of Governors of the Federal Reserve ystem. In addition to the fiduciary powers herein authorized, the bank was granted authority, on May lo, 1900, to act as executor, administrator, guardian of estates, and committee Of estates of lunatics. A formal certificate indicating the fiduciary powers that your bank is now authorized to exercise will be forwarded in due course. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE Item No. 3 8/18/61 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. ADDRESS orriciAL CORRESPONDENCE TO THE BOARD August 18, 1961 The Honorable Erie Cocke, Sr., Chairman, Federal Deposit Insurance Corporation, Washington 25, D. C. Dear Mr. Cocke: Reference is made to your letter of August 8, 1961, concerning the application of Panhandle State Bank, Borger, Texas, for continuance of deposit insurance after wIthdrawal from membership in the Federal Reserve System. Subject bank was regarded as a "problem bank" from the time of its examination as of the close of business June 25, 1955, until its examination as of the Close of business January 23, 1960, at which time it was ,emoved from the Board of Governors' list of problem oanks. The basis for so classifying the bank has been 4n adverse asset condition and management rated "Poor." Ileeent examinations reflect some improvement in asset condition and changes in management. There remains a degree of doubt with respect to the capacity of management. At present no corrective programs that the Board of Governors believes should be incorporated as ,?onditions to the continuance of deposit insurance have "en urged upon or agreed to by the bank. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE Item No. L. FEDERAL RESERVE SYSTEM 8/18/61 WASHINGTON 25, 0, C. ^lawmen orrociAL CORRIESPONOCNCE TO THE 1110ARD August 18, 1961 Board of Directors, Southern Arizona Bank and Trust Company, Tucson, Arizona. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Dallas, the Board of Governors of the Federal Reserve System approves the establishment by Southern Arizona Bank and Trust Company, Tucson, Arizona, of a branch at the intersection of Valencia Road and South 12th Avenue, Tucson, Arizona, provided the branch is established within 12 months from the date of this letter. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary.
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