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Minutes for
To:
ugust 5, 1.958
Members of the Board
111
'
4ft: Office of the Secretary
Attached is a copy of the minutes of the
447-u. of Governors of the Federal Reserve System on
uue above date.
BOAv+A
It is not proposed to include a statement
lilth respect to any of the entries in this set of
alltes in the record of policy actions required to
11;=ttzd pursuant to section 10 of the Federal
t
Should you have any question with regard
to the minutes, it will be appreciated if you will
!1;!viee the Secretary's Office. Otherwise, if you
,,fe present at the meeting, please initial in coli:4 A below to indicate that you approve the minutes.
bl,You, were not present, please initial in, column B
'
4-0v to indicate that you have seen the minutes.
A
Chm. Martin
Go1,.
Szymczak
Gov,
Vardaman
Gov,
Mills
Gov,
Robertson
Gov.
Cov.
Balderston
Shepardson
2232
Minutes of the Board of Governors of the Federal Reserve System
on Tuesday, August 5, 1958.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
The Board met in the Board Room at 10:00 a.m.
Martin, Chairman
Balderston, Vice Chairman
Vardaman
Mills
Shepardson
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Discount rates.
Kenyon, Assistant Secretary
Fauver, Assistant Secretary
Riefler, Assistant to the Chairman
Johnson, Director, Division of Personnel
Administration
Masters, Director, Division of Examinations
Solomon, Assistant General Counsel
Hexter, Assistant General Counsel
Hostrup, Assistant Director, Division of
Examinations
Unanimous approval was given to a telegram
to
""0 Federal Reserve Bank of Atlanta approving the establishment
without
change by that Bank on August 4, 1958, of the rates on discounts
and advances in its existing schedule.
A SeIdeation of First Bank Stock Cor oration (Items 1 2 and 3).
At th
e meeting on July 24, 1958, a majority of the Board consisting of
ileser
se Martin, Szymczak, Robertson, and Shepardson voted to deny the
413154 •
cation of First Bank Stock Corporation for prior approval of the
acqui
sItion of voting shares of First Eastern Heights State Bank of
Saint Paul,
St. Paul, Minnesota. Subsequently, there had been distributed
to the
- Board copies of a revised majority statement and a separate
''ing statement of Governors Balderston, Vardaman, and Mills, who
c
°/latltuted the minority.
2233
8N5B
-2-.
At the Chairman's request, Mr. Solomon highlighted the major
hanges from the previous versions and pointed out that a person reading
the former dissent, which was now the majority opinion, would be justified
in thinking that much of the strong language had been removed.
He
e:qqained that this was warranted in view of the possibility of judicial
therefore, dictated a somewhat modified approach in what
review which
18 new the majority ruling and the basis for the Board's action.
He
indicated there were still a few purely editorial changes which the staff
felt should be made, and agreement was reached on those changes.
Governor Balderston asked whether Mr. Solomon and his colleagues
had rev-1,
ewed carefully the discussion in the majority statement with
regard to the
fourth factor, namely, "the convenience, needs, and welfare
Of the
community and the area concerned." He mentioned this particularly
beer,
e President
Deming in his presentation to the Board and in subse(4/lent discussion
had expressed considerable concern about the possibility
c't a finding
by the Board that there was not a justifiable need in an
inatan
ee where the State banking authorities and the local community had
e ci:ir-"sed a contrary position.
Mr. Hostrup said it should be noted that the State chartering
alAthori.„
- Y had somewhat different factors to consider in arriving at a
hette•
lcation of "need". The Minnesota authority must only find a
114-0
nable public demand".. which is quite different from the standards
that
M4St be
applied by the Board under the Bank Holding Company- Act.
2234
8N58
-3After further discussion, a minor change in wording was agreed
144n in the light of Governor Balderston's comment.
Thereupon, the Board unanimously agreed that the majority stateInent and the dissenting statement, as revised, and the Order of the
Board denying the application of the First Bank Stock Corporation should
be issued in the form attached to these minutes as Items 14 2, and 3,
l'espectively. It was understood that the statements and Order would
be released to the press at 2:00 p.m. today, at which time the Secretary's
°trice would advise the Federal Reserve Bank of Minneapolis which would
turn advise the applicants of the contents of the Order.
At this point, Mr. Molony, Special Assistant to the Board,
riet
ered the meeting and Messrs. Hostrup and Hexter withdrew.
Relocation arran ements for employees. Prior to the meeting
ther.
had been distributed to the Board copies of a memorandum dated
311 1958, from Governor Robertson forwarding two memoranda from
.j
°hnson, Director of the Division of Personnel Administration,
*
l elatIn
'
-g to special arrangements to be made for Board employees and
thei
families in the event of a national defense emergency. The first
of th0
memoranda recommended the designation of Culpeper, Virginia, as
a
*LYIng point for Board employees who were not included among those
aasi
gfled to the relocation site and for their families. This would
•
1)el*Init -1
aison with surviving employees of the Board's staff for probable
48e at the
relocation site and also provide a location where the Board
e°111..4
render assistance to these employees and their families.
2235
8/5/58
-4Culpeper, Virginia, is 68 miles from Washington and beyond the
distance for rallying points.
Contact with local Civil Defense
alithorities
there indicated they would be receptive to the Board's
designation of this community as a rallying point and that adequate
'facilities for the accommodation of the personnel were available. It
aPPeared also that the Culpeper National Bank located in the community
14041d be
agreeable to rendering assistance to Board employees or their
dePendents and to granting moderate amounts of credit upon request and
Pl'oper identification.
The second memorandum recommended that the Board approve
clePendents of the Board's relocation staff being permitted to go to the
board,s
relocation site in the event of an emergency and that transportaexpenses plus subsistence in excess of normal living costs be
l'111113111'sed. It also recommended that if the Board approved this proposal,
the Federal Reserve Banks should likewise be informed so that they might
take sinlilar action if they thought it necessary.
Lack of adequate provision for the families of Board employees
(Irdsred to its relocation site was found to be a major gap in the planning
al'rangements considered during the recent relocation exercise. It was
delY recognized that worry over the safety of their families and the
sAtkil
'aollity of food and shelter for these families would result in delays
c)r the
arrival of the pre-selected group of employees at the Board's
-uatlon
site. Mr. Johnson pointed out that 145 accommodations for
2236
8/5/58
8°1ard employees and their families had voluntarily been offered at the
relocation site and, therefore, it appeared that except in the event
(32 an attack upon that area, sufficient housing would be available. He
also thought it important that the Board's employees should be compensated
'
r r additional expenses for transportation and subsistence in excess of
IlarnIal living costs. This principle would be applied, if necessary, to
illtances where families were housed elsewhere by an employee on his way
to the
relocation site.
After a discussion of the feasibility of the proposals under
ellIncY conditions of the type envisaged by the relocation exercises
to (lat..,
during which Chairman Martin pointed out that it was necessary
to h _
-.Lye Plans
the Board
even if it were never possible to use them,
Iltlarlin
ely a reed to the adoption of the recommendations nade by the
Personnel Division, with which Governor Robertson had expressed conelll'r'ence before
leaving on vacation.
At this point Messrs. Riefler, Johnson, and Mblony withdrew.
Of the
aspects
Following a brief discussion of some
"------1 2---DarlP°beT ccases.
.-_
supervisory problems in connection with certain banks, an under-
stazo4_
g was reached that Mr. Masters, Director of the Division of
3carnizia. .
6, a
tl°ne, would present to the Board on Wednesday, August
81111141417 of the review of problem banks as of April 30, 1958, which had
been
the s
which
uuJect of a memorandum to the Board dated June 30, 1958,
had r
eeentlY completed circulation.
2237
8/5/58
Thereupon all of the members of the staff withdrew and the
Board went into executive
session.
Proposed outside activit,z. Governor Shepardson later informed
the secretary's Office that during the executive session the Board gave
ecnsideration to a memorandum from Mr. Fauver dated July 28, 1958,
regarding the possibility of his standing for election to the Montgomery
CetilltY, Maryland, Board of Education. Governor Shepardson stated that
after discussion and expression of some reservation by one member, the
to interpose no objection if Mr. Fauver should stand for
8cardslz_ideq__
election as a public service. This would be in harmony with the position
ta411 by the Board in its letter to the Presidents of the Federal Reserve
8anke dated June 15, 1938 (FRLS. #3152) with respect to service in such
4 eaPacity by officers and employees of the Reserve Banks.
The meeting then adjourned.
Secretary's Note: Governor Shepardson today
on behalf of the Board the following
,22E2Lel
3
Items:
appoCrnoranda from appropriate individuals concerned recommending the
l'ate .5:Tent of the following persons, with basic annual salary at the
the,•441uioated effective as of the respective dates on which they assume
duties:
Name and title
Mtha Jane
Charuhas as
Records Clerk, Office of the Secretary
Ilargery K. Phillips as
St
atistical Clerk, Division of
Research
and Statistics
Annual salary
*31755
3,755
81'51'58
-7
4..
Letter to the Federal Reserve Bank of Chicago (attached Item No. 4)
:4terp
osing no objection to an extension of the leave of absence without
vaY granted to a Bank employee.
tr___ Letter to the Federal Reserve
vvr°ving the designation of Robert
e/caaliner
Minneapolis (attached Item No 5)
cester as special assistant
Assistant Secretary
2239
UNITED STATES OF AliERICA
BEFORE THE BOARD OF GOVERNOR
Item No. 1
8/5/58
OF THE FELERAL RESEaVE SYSTE4
In the
matter of
the
application of
PIRST BANK SIM, CORPORATION,
MIN
NEAPOLIS, OINNESOTA,
!c)r prior approval of
i,ccluisition of voting shares of
'LIST EASTERN HEIGHTS STATE BANK OF SAINT PAUL,
T.
PAUL, MINNESOTA.
S LA EFENT
Company
Pursuant to section 3(a)(2) of the Bank Holding
Act
f loc4
Nalik
Ilinnesota
First Bank Stock Corporation of Minneapolis,
Board for
Stocklo,
) a bank holding company, has asked the
Dri.or a
shares
pproval of the acquisition of 1,190 of the 1,250 voting
1)1'°°aeci to be issued by First Eastern Heizhts State Dank, St. Paul,
Mihriesota
("Easternu).
l*tual background.
of 91
Bank Stock controls a total
Q1a1 banking offices) of which 51 are in Minnesota, 14 in
(*th
Wisconsin.
ak"a, 10 in South Dakota, 14 in Montana, and 2 in
14
ece
P°sits of these banks at the end of 1957, the date as of which
deposit
unless otherwise
ri3ures will be shown in this statement
141111
cated totaled J,563 million, of which 4748 million were held
Bank of
11"k Stock's
two largest subsidiaries) First National
IlileaP°1is and First National Bank of St. Paul.
2240
Bank
Eastern is a proposed new bank to be established by
Stock ,
ln the Sun Ray Shopping Center, located at the ea tern bounda:q
Of the City
from the
Of St. Paul, about four and ono-half miles
cic)'Altown
capital structure
financial district. It would start with a
of the first year of
Of 25°)°°°. imticipatd deposits at the end
°Peration
to
are about J,000,000, and Dank Stock expects Eastern
have about
wuj000,000 of deposits within ten years.
The Sun Ray Shopping Center is in an area whose future
Zrowth
J both business and residential, appears virtually certain.
1111 additi
nining
J-0/1 to housing construction in the area, Minnesota
center directly
aNiManufacturing Company is developing a research
east of
the Shopping Center, and it plans also to locate accounting,
December 1957,
'"eerille, and administrative offices there. In
800
that
were employed at the new development, and it is expected
this fizure
is estimated
will rise to 12,000 in about ten years.
that MOre
than 17,000 persons live in what Bank Stock describes as
4ste
population of
411'8 Primary service area, and in ten years a
'vs000 4
4.6 exec
Led,
the
1innesota Department of Commerce, which governs
The '
and loan associations
6 Of both State banks and State savings
14 "nne eota, issued an order in April 1958 permitting the establishe
of a
t savings and loan association in the vicinity of Sun
FIlY
Shopping Center,
activated by
provided Eastern is not
sn
,
4velni325, 1958,
2241
-3At present there are no banks within approximately three and
elle'hair
41
44-1Qs of the proposed location of Eastern. Beyond this dis-
tance
taere are seven banks in the eastern part of St. Paul and adjacent
1113111'13an areas,
with deposits of individuals, partnerships, and corpoI'M4-onn
(IPC deposits") totaling about $40 million. The two largest,
with ipo
—
‘
deposits
of nearly 23 million (575 of the total) are subsidiarie8
of Bank Stock, and the next largest, with IPC deposits of over
bahi.
is a subsidiary of Northwest Bancorporation, the other major
hOld-4g company operating in Minnesota and neighboring States.
rema4„,
'Luing four banks of the area, which are not affiliated with
Nrholdi,
"g company, have aggregate IPC deposits of only about 38 million.
The
Bank Stock controls
5
the City
of the 20 commercial banks in
cSt.
the
Paul and 625
of their $468 million of IPC deposits. In
St. Paul
7Q4*te
t
commercial banks
area, Bank Stock controls 6 of the 35
55% clf their $534 million of IPC deposits. It also held 55% of
t::aj
Posits in that area, that percentage having declined from 67%
1 3°6 In Ramsey and Hennepin Counties, which contain the Twin Cities
(1T1,9
1111, ilineaP°1ds and St. Paul, Bank Stock controls 18 of the 69 comit te,i41 banking
deposits;
offices and 465 of their $10 380 million of IPC
Bank
8417ing3 bank in Minneapolis is included in the total,
kle
deposits
subsidiaries' percentage of the $10654 million of IPC
4
"(1 t
V° counties is
reduced to 39%*
2242 I
-4Statutorr provision.Section 3(c) of the Bank Holding
c'PallY Act (12 u.s.c. 1842(e)) provides:
ae "In determining whether or not to approve any
quisition • •
under this section, the Board shall
take into
consideration the following factors: (1) the
1.ancial history and condition of the company or
nies and the banks concerned; (2) their prospects;
(3)Pthe Character of their management; (4) the conZnienoe, needs, and welfare of the communities and the
ea concerned; and (5) whether or not the effect of
ex
sueth acquisition ... would be to expand the size or
of the bank holding company system involved
beyond
t8 consistent with adequate and sound banking,
limits
the
.2nt
i'
;
l vtaPI:b14
olrat
lizI"the preservation of competition
4
111-.12.111121a.
With respect to the first three factors
11111el'ated in section 3(c), it appears that the condition and proOf n
''ank Stock are good and its management competent, and it
ar, 8
rPeara that
Eastern's prospects also would be favorable and its
Nelnent
competent. As pointed out in the Board's Statement in
the
matter
or First
New York Corporation these circumstances are
Nlaiat
with approval of an application under section 3(a), but
they, d
not
°
Provide substantial affirmative support for such
4411,01,41.
Netts
4ppa
With respect to the fourth factor ("the convenience,
alld Welfare of the communities and the area concerned"), it
be ars that there is
not a strong need for the proposed additional
fa .
ellitY, but the convenience-- and to that extent the welor r
eeidents and businesses in the area would be served
2243 I
_5..
If a ba
-flk were established in the proposed location. Furtherwore,
48 $tated
above, the population of the area is e:Tected to triple
vitlin
"en years, and the contribution of the proposed bank to the
4rea
vresumably would increase as the population grows.
The fifth factor prescribed by section 3(c) relates to
/11cther 4u
La-Le effect of the proposed acquisition "would be to expand
the
size or
extent of the bank holding company system involved beyond
likita
consistent with adequate and sound banking, the public interest,
844athe
I'llaservation of competition in the field of banking." Accord-
'We are obliged to consider the size and extent of the Bank Stock
110144
company system,
t4
and the proposed acquisition, in the light of
eae cri
the con terla. We must also weigh the relationship to each other cf
siderations bearing upon the fourth and fifth factors.
When a proposed extension of banking services by a bank
heldin
e°111P4flY system would serve the convenience of and otherwise
'Qrit ah
-- area, and the
prospective benefits are not outweighed by
1111141ror
be
iao
able considerations, it is appropriate to authorize the boldprovide these advantages. Thus, in the case of Southgate
—arill of Milwaukee, Milwaukee, Wisconsin, 44 Fed. Res. Bulle-
ttr
(1958)) the Board granted its approval for a large holding company
t
° ‘'ste.bii
relev:" a new bank in a shopping center because, considering all
circumstances, including the population and prospects of
"
area
eencerned and the existing banking facilities, the probable
`e to t,
a
area was deemed by the Board to outweigh adverse conrespect to the fifth factor.
2244
On the other hand, the Board has found it necessary to
deirr
" "PPlications for expansion by bank holding companies when the
aclvera
e features were considered to outweigh favorable aspects.
464qle are found in the case of Northwestern State Bank, Rochester,
Ritties
°ta, 44
Fed. Res. Bulletin 11 (1958), where the absence of a
Stroll
consideration,
need for the banking facility was an important
44d the
Milwaukee,
ease of Capitol National Bank of Milwaukee,
Wie
eQnflin)44 Fed. Res. Bulletin 15 (1958)0 where probable adverse
etteQte Ur,"
an independent bank moving to the area were significant.
As illustrated by the three cases just mentioned, each case
Not be
decided on the basis of its particular facts, and the weight
be fie
corded the various aspects must depend on the factual circumtiteaces.
t()
In the City of St. Paul and in the greater St. Paul area,
114k St le Is
"- subsidiaries hold more deposits. as well as more IPC
c'clits +1,
) --an all other banks combined. Bank Stock points out that
thie
Itee, Pl'ePonderance is chiefly due to its large subsidiary, First
C
:
014 1 Bank of St. Paul; at the end of
1957 that
bank held about
the deposits and 46% of the ITC deposits in the greater
Pima area.
First
However, this does not alter the fact that
114ttollel
h.
to411
411d Eastern would be subsidiaries of the same holding
Neither can the influence of First National in the vicinity
:
tel t3telll be disregarded. First National's strength is doubtless
4,
,
4
14 beater
in
measure in the downtown section of St. Paul than
cUtivi„
"-"a areas, but it is by no means limited to the former.
2245
_7_,
Moreover, as previously noted, while there are no banks
Withili
about 3-1/2 miles of Eastern's proposed location, beyond that
Stance
411 the eastern part of St. Paul and adjacent areas there
4re oevon
banks, of which the two largest are Bank Stock subsidiaries.
Th°se two had
about $23 million (57%) of the 454o million IPC de1°"8 of the seven banks. The four banks of the area which are not
aittl.
4.1ated with any holding company had, all told, only about
`8
.
"-4 -on of IPC deposits.
-4-43
One of the smallest of these four is Hillcrest State Bank,
esteb1 en4,
4. ed less than three years ago, and located in another shopping
eertor n41)Proximately 3.6 miles north of the proposed site of Eastern.
tathou'
gh the depressed
tracks and right-of-way of a railroadl with
Very re
V Street
crossings in the area, run between the location of
11111^-
"coot State
Bank and the proposed location of Eastern, it appears
that
the two
banks would to some degree serve overlapping areas. It is
Y that the continued existence or soundness of Hillcrest or
44Y other
4notituti0n would be seriously endangered by Eastern,
vvever
allY in view of prospective growth in the general area.
/ on the basic of all the relevant facts we conclude that Bank
t3to
014m_eot
tLe
a
blishment of Eastern probably would have adverse effects
Gr°14th and competitive strength of Hillcrest.
tette
14 the
1:11.1k Stock points out that it has not followed an expansionifl the St. Paul arda, that its percentage of deposits
er
e4.ter St. Paul area has declined since 1930, and that the
224r
-8deposi,
Of
Eastern would not add a substantial percentage to the
total
uePcsits of Bank Stock's subsidiaries in the St. Paul arca.
t s
*
he-e facts to some degree tend to moderate/favorable aspects
of tho
Present application in relation to the fifth factor, it must
1° re ethi,
111--"ered that Bank Stock still has more deposits than all other
banke
"mbined in the greater St. Paul area, and that the relatively
trail
Percentage Which Eastern would add to Bank Stock's deposits in
thear
area
is partly a reflection of Bank Stock's present large size.
the
as previously noted, of the seven banks in the area
aqjoini
ng what Bank Stock considers the primary area of Eastern, the
tlio
Cest, holding 57% of the IPC deposits, are Bank Stock subsidiaries.
As
indicated above, difficult questions of degree are
D4sented in
involved
Weighing opposing considerations such as those
i4
the
present case. Circumstances can change, and each application
Nst be
ev
aluated in the light of the situation at the time. Conlqering all
relevant aspects of the present matter, the Board
e°rIcIAIdes
application outweigh
that
considerations unfavorable to the
t41c4le
favorable to it, and that the application therefore should be
c1411.ed.
It is so
ordered.
Rraphi
cal error
•
Word "favorable" should be "unfavorable".
2247
.1-
Item No. 2
8/5/58
DISSENTING STATEMENT OF VICE CHAIRMAN BALDERSTON AND
GOVERNORS VARDAMAN AND MILLS
We are convinced that the present case is essentially the same
--4aciPle as the case of Southgate National Bank of Milwaukee,
4111`1411kee, Wisconsin,
44
which a holding
Fed. Res. Bulletin 10 (1958) in
e°11411Y controlling a substantial percentage of the total commercial
bank
'''Posits in the same city received the Board's approval to establish
B
.
tle7 bank in a shopping center.
judgment in that
It was the Board's
e4cle that the establishment of the new bank would serve the "convenience,
teeds
"expand the
/ 411d welfare" of the community and would not unduly
61,4
°r extent of
Accordingly, we believe
the bank holding company".
,
thElt atm
.°val should be granted here as it was there and, as indicated
"
be1014 -.
we are unable to agree with the decision of the majority of the
114rd
to deny the application.
The elements of the fourth factor -- "convenience, needs,
their extent both
e"
tal
'
should be appraised with reference to
arla vel
o.t
Preaont and in
Currently, the need
the proximate or visible future.
a tot a*
Manufacturing Company has
5
However, Minnesota Mining and
oarady
bl'ought approximately 1,000 employees into the area atd within
ten
- Year,
Within a decade the
'11 Plan8 to bring in a total of 12,000.
n,
°4 -. the
u
tqme, ,
is expected to
area to be served by the proposed bank
factor is
•
question at issue with respect to the fourth
%lheth„ tl
4e "convenience needs, and welfare" of this growing suburban
1)0
1?Illation
which there
"Alat go uncerved until an independent bank, of
in
no curr_
"It prospect, would be organized. Since existing banks are
14e, 1411ae or more from
location, and strong
the proposed Sun Ray
i` e•tiorle
Point to an increase in the banking needs of the area in
the „
Proximate and predictable future, consideration of the fourth
t etOr
provides a substantial basis for approval.
Does, then, the fifth or competitive factor overbalance the
Ntrth?
Would the "size or extent" of Bank Stock's operations be ex-
P4r4ed "beyond
limits consistent with adequate and sound banking, the
interest, and the preservation of competition in the field of
ballkinot
One must approach this factor by seeking to interpret the
Intent °I the statute as passed.
It clearly did not impose a death
:
8 41tenee uPon existing holding companies, nor does the Act indicate an
tent to
"freeze" them at precisely their present "size or extent."
The central
question, therefore, is whether the proposal would change
the
size
or extent" in such fashion as to be detrimental to the
Nbli„ .
Interest.
Its
The size of
Bank Stock in an absolute sense is large.
a,
8 --e also large relative to the total deposits of both the
reater s4
-'s Paul area and of the east side of St. Paul and adjacent
..
Qi.lburban
e°mmunities. However, its magnitude, both absolute and relatilre,
which it
n
uspt
. be analyzed
:
1 11101,
aa to its nature and the direction in
control,Of the
N
55%
area
of the deposits of the greater St. Paul
e(11 by Bank Stock, First National Bank of St. Paul contributes
'Mlile figures are not available, ordinarily the largest bank
41.4
III
a eitY does more
out-of-town business than the other banks.
It i3
not size per se that is the heart of the problem in
........
ease v,
jilt whether the starting of a new bank in Sun Ray would in'
N.
"e th .
6 extent of Bank Stock's activities contrary to the public
Intere8t
• The
Stock
-- Proposed location is not remote from present Bank
balike; 8a
thitl
seal,
territory but is
nk Stock is not leap-frogging into distant
t 80,
o --just
itself to the centrifugal forces that are causing
224S
224!
_3P°Pulatimn grouth in the outlying areas of grcat cities. Not to be
PerMittri
e- to
increase the current extent of its banking service would
13 tanta
mount to "freezing" the size o2 Bank Stock except for such
gl.'mrtv, •
" ds its banks can
accomplish in their present locations.
Neze?
Does the expansion policy of Bank Stock then justify such a
Its
1930) 8.4nk
recordof the past 28 years does not so indicate. Since
Stock's relative control of the deposits of the greater
St
'P4111 area
has shrunk from 67% to
period it has
55. In that
altlired only
one bank in the area,
an existing bank that it bought
111 1956.
To argue
that it must now and in the future content itself
With
sUch grollth
as it may achieve in its present lo ations, be they
gocKi or
bad, is to
bar it from adapting itself to the ebb and flow of
btisiness aLd
Of
be a
Population. To rule adversely would in reality
litreezett or
13ank
Stock'S
banking structure, despite the evidence that
414Pendent banks
can start and survive in the region in which Bank
%()k
operates. There are
29 commercial banks in the area not affili4ted with
Bank
Stock, and since 1944 five new banks have been chartered.
'41e record
and
behavior of the past ought not to be iunored in ruling
likn the
a
pplication of the statute to the instant case. If the intent
q the
statute is
neither to kill holding companies nor to "freeze"
them
into
their existing
molds the fifth factor in this case does not
'44rtsatit
ignoring the
banking facilities
4 the
community's m:ed for additional
QAtion.proximate and forseeable future. Ve would approve the appli-
2250
BOARD OF GOVERNORS OF THE FEbERAL RESERVE SYSTEM
Item No. 3
8/5/58
Inthe Matter
of the Application of
PIRST BANK
STOCK CORPORATION
1
.qAPpro
„Ares ofval of Acquisition of Voting
FIRST
EASTERN HEIGHTS STATE BANK
8 OP SAINT
PAUL,
T PAUL)
'
MINNESOTA.
ORDER
application
The above matter having come before the Board on the
°f 4rst Bank
Minnesota, dated December 30)
Stock Corporation, Minneapolis,
1957) filed
of the Bank
pursuant to the provisions of section 3(a)(2)
l'icl-ding
acquisition of
Company Act of 1956, for prior approval of the
13190 of
proposed new
the 1,250 voting shares proposed to be issued by a
batik) Firat
St. Paul, Minnesota)
Eastern Heights State Bank of Saint Paul,
arid
the require—
lt appearing after due consideration thereof pursuant to
%ts of
should
the Bank Holding Company Act of 1956 that such application
be denied,
IT 18 altERED,
under
That the said application of First Bank Stock Corporation
ae
for the Board's
tien 3(a)(2) of the
Bank Holding Company Act of 1956
Prior ap
of
proval of tile acquisition by First Bank Stock Corporation
131" Of the 1,250
State Bank of Saint Paul)
shares of First Eastern Heights
hereby denied.
Th
is 5th day of August, 1958.
BY order of the Board of Governors.
Voting for this action: Chairman
Governors Szymczak, Robertson and
voting against this action: Vice
Balderston and Governors Vardaman
hington) D,
Aliguat
Cs
5)
(SEAL) 1958°
Martin, and
Shepardson;
Chairman
and Mills.
Kenneth A. renyon,
Assistant Secretary.
2251
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No.
4
8/5/58
WASHINGTON 25, D. C.
ADORERS OrriciAL. CORRESPONDENCE
To THE BOARD
August
5, 1958
.
L.
J. Newman, Vice President,
eceral Reserve Bank of Chicago,
-"'eago 90,
Illinois.
be° Mr.
Newman:
stating
that
Receipt is acknowledged of your letter of July 25
the
the
of
request
Dsparre Board of Directors of your Bank, at the
absence
l'tithouTerut of Commerce, has granted a further leave of
Miss 14:,PaY for a period to continue through October 31, 1958, to
Rymarowicz,
'
lian M. Rymarowicz of the Research Department. Miss
it is
completing
understood,
841
will assist the Bureau of the Census in
gnment.
It is noted that there will be no break in Miss Rymarawicz's
41,1,1_
"for retirement purposes and that, upon her return to the
Bank,
,
he
-1- be reinstated without loss of seniority.
of
ic:7:rd interposes no objection to the extension
11Ze
leave as described in your letter.
Very truly yours,
/
27,We27
Kenneth A. Kenyon,
Assistant Secretary.
,
2252
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
Item No. 5
8/5/58
ADDRESS OffICIAL CORRESPONDENCE
TO THE BOARD
August
5, 1958
Frederick L. Deming, President,
Federal Reserve Bank of Minneapolis,
Mineapolis 2, Minnesota.
Dear Ni. Deming:
In accordance with the request contained in
Your letter of July 30, 1958, the Board approves the
designation of Robert W. Worcester as a special assistant
examiner for the Federal Reserve Bank of Minneapolis.
Very tray yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
@FedFRASER