Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, August 2, 1963, Volume 50, Part 8

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

609

T. 9/61

1963
Minutes for August 2,

.
From:

Members Of the Board
Office Of the Secretary

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.

chm. martin
Mills
Gov. Robertson
Balderston
Shepardson
Gov. King
Gov. Mitchell

Minutes of the Board of Governors of the Federal Reserve System
on Friday, August 2, 1963.
PRESENT:

Mr.
Mr.
Mr.
Mr.

The Board met in the Board Room at 10:00 a.m.

Balderston, Vice Chairman
Mills
Shepardson
Mitchell
Mt. Kenyon,
Mr. Cardon,
Mr. Fauver,
Miss Quick,

Assistant Secretary
Legislative Counsel
Assistant to the Board
Secretary, Office of the Secretary

Messrs. Noyes, Brill, Holland, Solomon,
Axilrod, Bernard, and Keir of the
Division of Research and Statistics
Messrs. Hersey, Sammons, Katz, and Goldstein of the Division of International
Finance
Money market review.

Mr. Bernard discussed the Government

ed on bank
securities market and the debt ceiling, Mr. Axilrod comment
credit, bank liquidity, bank reserves, and the money supply, and Mr.
Goldstein reviewed recent foreign exchange market developments.
of
After discussion based upon these reports, all members
the staff except Messrs. Kenyon, Fauver, and Sammons and Miss cuick
Withdrew from the meeting and the following entered the room:
Mr. Hackley, General Counsel
Mr. Hooff, Assistant General Counsel
Mr. Daniels, Assistant Director, Division
of Bank Operations
Mr. Leavitt, Assistant Director, Division
of Examinations
Discount rates.

The establishment without change by the

, Chicago,
Federal Reserve Banks of New York, Philadelphia, Atlanta

Aro

8/2/63

-2-

and San Francisco on August
1, 1963, of the rates on discounts and
advances in their existing schedules was approved unanimously, with
the understanding that appropri
ate advice would be sent to those
Banks.
Circulated or distributed 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 the Federal Reserve Bank of New York
agreeing to the opening and maintaining by the
Bank of an emergency account for the International
Monetary Fund.

Letter to The Trust Company of New Jersey, Jersey
City, New Jersey, approving an extension of time
to establish
a branch at 2117-2127 Hudson Boulevard.

Letter to the Federal Reserve Bank of Richmond
approving a change in the classification of member
banks in the Fifth District for the purpose of
electing Class A and Class B directors.

Letter to Gaylord State Bank, Gaylord, Michigan,
approving an investment in bank premises.
Letter to Tompkins County Trust Company, Ithaca,
New York, approving the establishment of a branch
in the Triphammer Shopping Center, Town of Lansing.

Letter to Long Island Trust Company, Garden City,
New York, approving the establishment of a branch
at 57-65 Hilton Avenue, for the purpose of conducting the activities of its instalment loan
department.

Letter to Fidelity-Philadelphia Trust Company,
Philadelphia Pennsylvania, approving (1) the
establishment of a branch in the 4 Penn Center
Plaza Building, 16th Street and Pennsylvania
Boulevard, and (2) an investment in bank premises.

8/2/63

-3Item No.

Letter to The Annapolis Banking and Trust Company,
Annapolis, Maryland, approving the establishment
Of a branch at
Ritchie Highway and McKinsey Road,
Anne Arundel County.

Letter to Union Bank, Los Angeles, California,
aPproving the establishment of a branch at
Ventura and Sepulveda Boulevards.

Letter to United California Bank, Los Angeles,
California, approving the establishment of a
branch in the vicinity of the area bounded by
Harrison, Third, Brannan, and Fifth Streets,
San Francisco.

Letter to the Presidents of all Federal Reserve
Banks authorizing the Banks, in their discretion,
to advise
State member banks of Board approval of
extensions of time of less than six months for the
establishment
of domestic branches.

Report on competitive factors (Oil City-Clarion-Mercer,
PennsYlvania).

There had been distributed a draft of report to the

Federal Deposit Insurance Corporation on the competitive factors
involved in the proposed merger of First National Bank in Clarion,
Clarion, Pennsylvania, and The First National Bank of Mercer, Mercer,
Pennsylvania, into The Northwest Pennsylvania Bank & Trust Company,
Oil City, Pennsylvania.
Governor Mills commented that, although he was not too familiar
with the area, there appeared to be a continuing tendency for the two
large banks, including the applicant, to absorb smaller banking institi°ns.

In this context, he would suggest a change in the conclusion

of the report to indicate that the Board was aware of the growing
concentration of banking resources in the larger banks and the effect

8/2/63
this proposed merger might have from the standpoint of the remaining
smaller banks in the area.
Mr. Leavitt agreed with Governor Mills regarding the trend in
this and some other Pennsylvania areas.

So far as the instant case

was concerned, Mr. Leavitt said the area was having considerable
economic problems, with a decrease in population and employment.

these circumstances, the Board had been rendering milder competitive
factor reports, having in mind the needs and demands of the area, than
might otherwise be the case.
Governor Mills said he realized that there were often underlying factors of this kind that deserved consideration.

However,

he was of the opinion that the Board's report perhaps should admit
the possibility of some adverse effect on the competitive position of
the smaller banks.
There being general agreement with this suggestion, the report
was approved unanimously for transmittal to the Corporation in a form
in which the conclusion read as follows:
The competition existing among the three banks involved
in this proposal is not believed to be significant.
The proposed acquisitions by The Northwest Pennsylvania
Bank & Trust Company, Oil City, would increase its deposit
size substantially and intensify competition between it and
the now largest bank serving the area without significant
adverse effects on smaller banks.
The meeting then adjourned.

)

8/2/63

-5ndaSecretary's Note: Pursuant to recomme
iate
appropr
from
nda
memora
in
tions contained
dson
Shepar
or
Govern
ned,
individuals concer
today approved on behalf of the Board the
s staff:
following actions relating to the Board'

Appointments

Administrative
Dora E. Albers as Charwoman, Division of
of $3,245, effective
rate
the
at
salary
Services, with basic annual
the date of entrance upon duty.
Administrative
Thomas A. Whitty as Guard, Division of
of $3,820, effective
rate
the
at
salary
annual
Services, with basic
the date of entrance upon duty.
Transfer
of Secretary in the
.
Judith M. Golodner, from the position
position of Secretary
Division of Personnel Administration to the
annual
in the Office of the Secretary, with no change in basic
1963.
4,
salary at the rate of $5,365, effective August
Salary increases, effective August

Name and title

4 1963

Division

Basic annual salary
To
From

Research and Statistics
Paul W. Kuznets, Economist
g
Elizabeth B. Sette, Chief, Economic Editin
Mary F. Weaver, Statistical Assistant
Starr Preston Morris, Clerk-Typist

6,650
4,030

8,310
11,880
6,835
4,135

5,035

5,205

6,835

7,020

6,900
6,055

7,125
6,225

$ 8,045
11,515

International Finance
Rosemary A. Darlington, Research Assistant
Examinations
Evelyn W. Edwards, Secretary
Bank Operations
John B. P. Baird, Analyst
Mary Louise Roberts, Statistical Assistant

256.1
8/2/63

-6-

Salary increases, e

Name and title

ecti e August

4, 1963 (continued)
Basic annual salary
From
To

Division
Personnel Administration

M. Callie Wickline, Nurse
Margaret H. Wolverton, Personnel Assistant

436,65o
8,310

6,835
8,575

3,455

3,560

8,575
4,030

8,84o
4,250

Administrative Services
Margaret E. Jenkins, Cafeteria Helper
Data Processing
Donald B. Fitzhugh, Data Processing Planner
Bernard A. Thomasson, Operator, Tabulating
Equipment
Leave without pay
Michael A. Gomez, Economist, Division of International Finance,
for the period from August 18 through September 13, 1963, in order
to participate in a technical assistance mission to Brazil
sponsored
bY the Agency for International Development.

Assistant

ecretarY

.4
)r— C
ecoa/0

Item No. 1

BOARD OF GOVERNORS
OF THE

8/2/63

FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

August 2, 1963

21inglIaLLal
141"- H. L. Sanford, Vice president,
Federal Reserve Bank of New York,
New York 45, New York.
Dear Mr. Sanford:
This is to advise, in response to your letter of July 18,
193, that the Board of Governors is agreeable to the opening and
maintaining by your Bank of an emergency account for the International
.lonetary FUndl to be operated substantially as described in the draft
letter from the Fund to your Bank that was enclosed with your letter.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.

BOARD OF GOVERNORS

Item No. 2
8/2/63

OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

August 2, 1963

Board of Directors,
The Trust Company of New Jersey,
Jersey City, New Jersey.
Gentlemen:
The Board of Governors of the Federal Reserve
System extends to February 17, 1964, the time within
Which The Trust Company of New Jersey may establish a
branch at 2117-2127 Hudson Boulevard, Jersey City,
New Jersey.
Very truly yours,
(Signed) Elizabeth L. Carmichael

Elizabeth L. Carmichael,
Assistant Secretary.

ZLIf
Item No. 3

BOARD OF GOVERNORS

8/2/63

OF THE
to.
,
. ,t.00
4,A7'
.10*

FEDERAL RESERVE SYSTEM

o*
}

WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

44
**404044. ott
t 0400*
‘

August 2, 1963

Mr. Edward A. Wayne, President,
Federal Re3erve Bank of Richmond,
Richmond 13, Virginia.
Dear Mr. Wayne:
As recommended in your letter of July 19, 1963, the
Board has changed the classification of member banks in the Fifth
District, for the purpose of electing Class A and Class B Directors,
to the following:
Group
1
2

Banks with Capital and Surplus of:
$2,700,000 or more
$575,000 but less than
$2,700,000
Less than $5750000
Very truly yours,
(signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.

Item No. I.

BOARD OF GOVERNORS

8/2/63

OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON 25. O. C.

•

ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

August 2, 1963

Board of Directors,
Gaylord State Bank,
Gaylord, Michigan.
Gentlemen*
The Board of Governors of the Federal Reserve
System approves, pursuant to Section 24A of the
Federal Reserve Act, an investment in bank premises
both direct and indirect, of not to exceed 0250,000 by
Gaylord State Bank for the purpose of constructing new
banking quarters. This amount includes 0250000 Ithich
is the entire capital stock of a building corporation
to be organized for the purpose of owning and operating
the new bank building.
Very truly yours,
(Signed) Elizabeth L. Carmichael

Elizabeth L. Carmichael,
Assistant Secretary.

2566
Item No. 5

BOARD OF GOVERNORS

8/2/63

OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDREBEI OFFICIAL CORRESPONDENCE
TO THE BOARD

August 21 1963

Board of Directors,
Tompkins County Trust Company,
Ithaca, New York.
Gentlemen:
The Board of Governors of the Federal
Reserve System approves the establishment of a
branch in the Triphammer Shopping Center (Unincorporated Area), Town of Lansing, Tompkins County,
New York, by Tompkins County Trust Company, provided the branch is established within one year
from the date of this letter.
Very truly yours,
(Signed) Elizabeth L. Carmichael

Elizabeth L. Carmichael,
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.)

0fto
f) — if,̀
frso It)

BOARD OF GOVERNORS

Item No.

8/2/63

OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADORES!! OffICIAL CORRICOPONOENCE
TO THE BOARD

August 2 1963

Board of Directors,
Long Island Trust Company,
Garden City, New York.
Gentlemen:
The Board of Governors of the Federal
Reserve System approves the establishment of
a branch at 57-65 Hilton Avenue, Garden City,
New York, for the purpose of conducting the
activities of its instalment loan department
by Long Island Trust Company, provided the
branch is established within six months from
the date of this letter.
Very truly yours,
(Signed) Elizabeth L. Carmichael

:)6S
0

0
.
0

BOARD OF GOVERNORS

Item N

OF THE

8/2/63

FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.

*
:

ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

0
0

August 2, 1963

Board of Directors,
Fidelity-Philadelphia Trust Company,
Philadelphia, Pennsylvania.
Gentlemen:
The Board of Governors of the Federal Reserve
System approves the establishment of a branch by FidelityPhiladelphia Trust Company, Philadelphia, Pennsylvania, in
the 4 Penn Center Plaza Building, S. W. corner of 16th
Street and Pennsylvania Boulevard, Philadelphia, Pennsylvania,
provided the branch is established within one year from the
date of this letter.
The Board of Governors also approves, under the
provisions of Section 24A of the Federal Reserve Act, an
additional investment of $155,000 in bank premises incident
to the establishment of the branch approved in this letter.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
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 (3-1846), should be followed.)

BOARD OF GOVERNORS

Item No. 8
8/2/63

OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

August 2, 1963

Board of Directors
The Annapolis Banking and Trust Company,
Annapolis, Maryland.
Gentlemen:
The Board of Governors of the Federal
approves the establishment of a
System
Reserve
Banking and Trust Company,
Annapolis
branch by The
the western corner of
at
Maryland,
Annapolis,
Road, Anne Arundel
McKinsey
and
Ritchie Highway
branch is estabthe
provided
Maryland,
County,
date of this
the
from
year
one
within
lished
letter.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
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 (5-1846), should be followed.)

BOARD OF GOVERNORS

Item No.

OF THE

8/2/63

FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE DOARD

August 2, 1963

Board of Directors
Union Bank,
Los Angeles, California.
Gentlemen:
The Board of Governors of the Federal
Reserve System approves the establishment of a
branch by Union Bank, Los Angeles, California,
at the northeast corner of Ventura and Sepulveda
Boulevards, Los Angeles, California, provided the
branch is.established within one year from the
date of this letter.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
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,
and procedure prescribed in the Board's letter
of November 9, 1962 (3-1846), should be followed.)

BOARD OF GOVERNORS

Item No. 10
8/2/63

OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE

6
0
*4

TO THE BOARD

44****

August 2, 1963

Board of Directors,
United California Bank,
Los Angeles, California.
Gentlemen:
The Board of Governors of the Federal
Reserve System approves the establishment of a
branch by United California Bank in the vicinity
of the area bounded by Harrison, Third, Brannan,
and Fifth Streets, San Francisco, California, provided the branch is established within one year
from the date of this letter.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
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.)

4 -Ar
Item No1
6/2/63

BOARD OF GOVERNORS

iettnt**,
1114**4
4

OF THE

.***

S-1882

FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.

ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

August 2, 1963.

Dear Sir:
In connection with the granting of extensions of time in
which State member banks may establish domestic branches, the
question has been presented whether the Reserve Bank may, under
the provisions of the Board's letter of November 9, 1962 (FRLS
IF3576), advise the applicant of an extension of less than six
months
In any case in which the Reserve Bank concludes that the
State member bank does not need the full additional six months,
the Reserve Bank is authorized to notify the applicant of an extension of less than six months. Further extensions should not
result in the total extensions aggregating more than the six-month
extension approved by the Board in the first instance.
Very truly yours,

Kenneth A. Kenyon,
Assistant Secretary.

TO THE PRESIDENTS OF ALL FEDERAL RESERVE BANKS

Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, August 2, 1963, Volume 50, Part 8

FRASER