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Minutes for December 10, 1957
To:
Members of the Board
From:
Office of the Secretary
Attached is a copy of the minutes of the
of the Federal Reserve System on
Governors
of
Board
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
A
Minutes of actions taken by the Board of Governors of the
Federal Reserve System on Tuesday, December 10,
1957. The Board met
In the Board Room at 10:00 a.m.
PRESENT:
Mr.
Mt.
Mt.
Mt.
Mr.
Mr.
Mt.
Martin, Chairman 1/
Balderston, Vice Chairman
Szymczak 2/
Vardaman 3/
-Mills
Robertson
Shepardson
Carpenter, Secretary
Kenyon, Assistant Secretary
Riefler, Assistant to the Chairman
Young, Director, Division of Research and
Statistics
Mr. Marget, Director, Division of International
Finance
Mr. Johnson, Director, Division of Personnel
Administration
Mr. Hackley, General Counsel
Mr. Boothe, Administrator, Office of Defense
Loans
Mr. Hostrup, Assistant Director, Division of
Examinations
Mr. Solomon, Assistant General Counsel
Mr. Goodman, Assistant Director, Division of
Examinations
Mr. Benner, Assistant Director, Division of
Examinations
Chief, International Financial
Furth,
Mr.
Operations Section, Division of International
Finance
Mr. Davis, Assistant Counsel
Mr.
Mr.
Mr.
Mr.
Items circulated to the Board.
The following items, which had
been circulated to the members of the Board and copies of which are
attached to these minutes under the respective item numbers indicated,
Were approved unanimously:
17
.V
Entered meeting at point indicated in minutes.
Attended morning session only.
Left meeting and reentered at points indicated in minutes.
3'531
12/10/57
Item No.
Letter to the Federal Reserve Bank of New York approving
revised salary structures applicable to employees of that
Bank and its Buffalo Branch.
1
Letter to the Federal Reserve Bank of Cleveland approving
the appointment of Clarence J. Goudreau as Assistant
Federal Reserve Agent.
2
Letter to the Federal Reserve Bank of Chicago approving
aalarY rates proposed for certain specified nonclerical
positions.
3
Letter to First National Bank in Tarentum, Tarentum,
Permaylvania, regarding the applicability of section 19
of the Federal Reserve Act and the Board's Regulation Q
to the offering of a set of silverware to new depositors
at a new branch office. (With a copy to the Federal
Reserve Bank of Cleveland)
4
Letter to the Comptroller of the Currency requesting his
Illeys and recommendations with respect to the application
Of New Hampshire Bankshares, Inc., Nashua, New Hampshire,
for prior approval of the acquisition of up to 60 per cent
Of the capital stock of The New Hampshire National Bank
Of Portsmouth. (With a copy to the Federal Reserve Bank
of Boston)
5
Letter to the Federal Deposit Insurance Corporation
Concerning the application of The Peoples Savings Bank
Company/ Martins Ferry, Ohio, for continuance of deposit
blaurance after withdrawal from membership in the Federal
Reserve System.
6
Letter to the Federal Deposit Insurance Corporation
granting permission to review and take excerpts from the
18oardas files on the Devon-North Town State Bank of
Chicago in connection with pending litigation. (With a
e°PY to the Federal Reserve Bank of Chicago)
7
Secretary
In connection with the foregoing Item No. 5, the
Currency, and
pointed out that such letters to the Comptroller of the
12/10/57
-3-
similar letters to the State banking authorities involving State banks,
are in routine form and are required to be sent pursuant to the provisions of the Bank Holding Company Act. He recalled that thus far such
letters had been presented to the Board for approval because of an
expressed desire that, at least temporarily, the Board be kept currently
informed on matters arising in connection with the administration of
the statute.
Following a discussion based on these comments, it was decided
that henceforth letters of this kind should be sent administratively
and that it would not be necessary to present them to the Board for
Spproval.
At this point Chairman Martin joined the meeting and Messrs.
Thomas, Economic Adviser to the Board, and Molony, Special Assistant
to the Board, also entered the room. Mr. Johnson with drew from the
meeting at this point.
Application of Brenton Companies (Item No. 8). There had been
circulated to the members of the Board a memorandum from the Division
"Examinations dated November 26, 19570 and other pertinent papers
relating to an application by Brenton Companies, Des Moines, Iowa,
tiled pursuant to the Bank Holding Company Act, for prior approval of
the acquisition of 13 additional shares of Palo Alto County State Bank,
5i I I
etsburg, Iowa. In recommending approval of the application, the
1)ivision of Examinations brought out that the applicant already owned
12/10/57
-4-
501 of the 1,500 outstanding shares of the bankta stock. A memorandum
from the Legal Division dated December 4, 1957, which also had been
circulated to the Board with the file on the application, expressed
concurrence in the position of the Division of Examinations and submitted
a draft of order which might be issued.
It being apparent from initial discussion that the Board regarded
the application favorably, question was raised whether the Board wished
the staff to prepare a brief statement of reasons in support of the
order so that the procedure in this case might be in line with that
followed in other similar cases under the Bank Holding Company Act.
The decision on this question being in the affirmative, the view
1m8 expressed that, despite the relative unimportance of this application,
it would be desirable as a matter of record to have the case handled in
accordance with the customary procedures.
Thereupon, the application of Brenton Companies was approved
Ilnanimously, with the understanding that a statement and order would be
isaued in the form attached hereto under Item No. 8L the order would be
PlIblished in the Federal Register, a press statement in the usual form
'
1701.11d be released, and copies of the statement and order would be sent
tc the appropriate parties.
Request of American Overseas Finance Compag (Item No. 9).
AMerican Overseas Finance Company, New York, New York, had requested
the Boardts prior consent to the acquisition and holding of up to 10
12/10/57
Per cent of the common stock of Panamerican Commodities, S. A., Lima,
Peru, incident to certain proposed financing of the South American
ccmPany and without additional payment for the stock by the Edge Act
corporation. American Overseas also had requested a determination by
the Board as to whether it might obtain advance approval to acquire
and hold "stock bonuses," subject to the statutory limitations set
forth in section 9(d) of Regulation K, or whether it would be necessary
to submit individual applications in each case.
In a memorandum dated November
5,
1957, which had been circulated
to the members of the Board, Mr. Goodman recommended approval of the
application to acquire and hold stock of Panamerican Commodities, S. A.,
subject to certain stated understandings, including the understanding
that the proposed acquisition and holding of stock would be made as an
incident to the proposed financing rather than for the primary purpose
Of making a long-term investment and that the Edge Act corporation
maid dispose of the stock within a reasonable time after the termination
(4 substantial credit or financing relationships with Panamerican. The
*amormadum also recommended advising American Overseas that in cases
'here "stock bonuses" were received incident to loan and credit
tl'arlaactions and without payment for the stock, it would not be
Ilacessary to submit individual applications to the Board in each case.
114 would be subject to the same understandings as in the Panamerican
taae and would be with the provision that in no case would the amount
12/10/57
-6-
of stock in any corporation so acquired and held represent more than 25
Per cent of any class of stock of the corporation. American Overseas
vould also be requested to submit to the Board promptly certain prescribed information with respect to any such stock acquisitions.
In commenting on the matter, Mr. Goodman stated that the
President of American Overseas Finance Company had discussed with him
and Mr. Solomon the matter of receiving "stock bonuses" in connection
vith some of the Company's loan transactions, that the President seemed
to have a question whether Board approval in such cases was required,
but that it was suggested that any such matter be submitted to the
Board in view of the provisions of Regulation K. Mr. Goodman vent on
to discuss various aspects of the Peruvian transaction and the proposed
reply to American Overseas Finance Company, including the portion of
the reply which would deal with the procedure that should be followed
in the future if the Company should receive stock incident to its
lending operations.
Governor Mills then raised a question with respect to the
language in the proposed letter which would state that in the Peruvian
ease and other similar cases American Overseas Finance Company should
cliapose of stock received incident to financing or credit relationwithin a reasonable time after the termination of such relation/31145. After referring to the status of American Overseas as a
ft
r
inancing" corporation, he called attention to the corporate structure
Of the company, including its ownership by a holding company, to the
=
12/10/57
fact that the company was obviously intended for the purpose of engaging
in venture operations, and to the fact that a portion of its profits
might be expected to flow from its success in establishing an equity
in foreign businesses that it financed.
It was his thought that if the
Company were required to divest itself of "bonus" shares, that might tend
to contradict the purpose for which the Board approved the organization
of the Edge Act corporation.
Furthermore, by requiring divestment the
Board might find itself involved with the problem which 'would come about
if the divestment took the form of a transfer of the "bonus" stock from
the operating company to the holding company.
For these reasons, it
appeared to him that the Board should reconsider the divestment
l equirement.
'
In response, Mr. Goodman stated that in considering the current
l'equest he had in mind the discussion of the Board in November 1956, at
'which time the predecessor corporation to American Overseas Finance
C°mPany was considering an investment in a Canadian enterprise.
At that
time, he recalled, the view was expressed that divestment should be
l'aquired vithin a reasonable time, say 18 months, after the termination
of credit or financing relationships with the proposed Canadian company.
84ch a provision, he noted, would be in line with the thought that the
Usefulness of a "financing" corporation would relate to a rolling over
of its funds.
However, he felt that Governor Mills had touched upon a
-04. point.
He also noted that at the time of the previous discussion
:35,
12/10/57
-8-
the stock of the predecessor Edge Act corporation was owned by a group
Of banks, while in this case there were no bank shareholders in either
the operating or the holding company.
Governor Szymczak discussed further the reasons underlying the
Board's previous decision.
Like Mr. Goodman, he felt that Governor Mills
had raised a point which deserved full consideration, particularly from
the standpoint of the earnings of Edge Act "financing" corporations.
There ensued a discussion based on the suggestion that any "bonus"
shares acquired probably would not have great value in the immediate
rixture.
In this connection, Mx. Goodman pointed out that the proposed
Peruvian loan would run for five years, which would give American Overseas
a considerable period of time to determine the value of any shares that
Might be acquired.
Chairman Martin then stated that, as the Board was aware, he
favored being as liberal as possible in the administration of matters
Of this kind.
In the circumstances, however, he did not feel that a
divestment requirement of the type proposed would work any particular
hardship at this Juncture.
It was his suggestion, therefore, that the
4raft of letter to American Overseas Finance Company, which was in line
vith the Board's previous decision, be approved and that there be put
4°14n for review by the Board the whole general problem raised by the
coimments of Governor Mills.
3538
12/10/57
There being agreement .with the Chairman's suggestions for the
handling of the matter, unanimous
was given to the letter to
was
American Overseas Finance Company of which a copy is attached hereto
for transmittal through the Federal Reserve Bank of
as Item
New York.
the meeting.
Messrs. Marget, Goodman, and Furth then withdrew from
tions
Policy in answering inquiries regarding_-.922.11Ellt of applica
under the Bank Holding Company Act (Item No. 10).
December
In a memorandum dated
9, 1957) copies of which had been sent to the members of the
Board, Mr. Hackley referred to a letter received from counsel for the
New Hampshire Bankers Association asking to be advised if and when the
Board received an application under the Bank Holding Company Act from
New Hampshire Bankshares to acquire the controlling interest in The New
11 '--yshire National Bank of Portsmouth, New Hampshire.
Since such an
aPPlication had in fact been received, this raised the question of the
Board on
''eaPonse to be made in the light of the policy adopted by the
November
5, 1956)
of not making public disclosure of the receipt of
8PP1ications filed pursuant to the Act.
Two alternative courses of
which would be
action were mentioned in the memorandum, the first of
to
inquiring party
disclose the fact of receipt of an application to any
144° appeared to have a legitimate interest.
The alternative course would
be to acknowledge receipt of any letter inquiring as to receipt of an
Board's Rules of
application by pointing out that pursuant to the
3539
12/10/57
-10-
Organizati0n relating to the confidentiality of information the Board
had adopted the policy of not divulging receipt of applications under
the Bank Holding Company Act. Preference was expressed for the first
alternative and it was suggested that a policy of nondisclosure might
serve to preclude the Board from obtaining views and opinions from
independent parties that the Board might well wish to consider in making
its final decision on an application.
Mr. Hackley commented that the Legal Division saw no objection
in this particular case to advising counsel for the Nev, Hampshire
Bankers Association that an application from Nev, Hampshire Bankshares
had been received since the matter had been given publicity in the press.
He also stated that the President of the Association had visited the
/30ardta offices recently and had asked about the matter, but that the
staff did not feel at liberty to tell him of the receipt of the
application until a check had been made with the Board.
Governor Vardaman raised a question as to whether the receipt of
aPPlications under the Act should be regarded in any sense as confidential.
If a policy of confidentiality were followed, he said
he would not regard
counsel for the New Hampshire Bankers Association in a different light
rrom any other interested party in the State of New Hampshire.
In all
the circumstances, it was his view that the Board should reconsider
the existing policy, with a view to possibly going as far as to publish
the receipt of all applications in the Federal Register.
3510
12/10/57
-11-
In this connection, Mr. Hackley commented that applications
received are a part of the Board's official records and as such are
merely unpublished information which, under the Board's Rules of
Organization, can be made available to anyone interested pursuant to
aPpropriate authorization.
Governor Vardaman responded that this raised a question of the
definition of an interested party and that a policy of publishing the
receipt of all applications under the Bank Holding Company Act in the
Federal Register would assure that equal treatment was given to all
17/10 might like to have the information.
Governor Robertson indicated that he would not favor going as
far
as
to publish the receipt of applications in the Federal Register,
/It least at this time, on the basis that the Board should "feel its way
along" in the administration of the Bank Holding Company Act.
As of the
Present moment, it would be his inclination to discard the element of
Secrecy
embodied in the current policy and make the fact of receipt of
an application known to anyone who might inquire.
He pointed out that
the Board's Rules of Organization would not override an instruction
from the Board to the staff that this kind of information could be
released upon request.
During further discussion of the matter, Governor Vardaman left
the room to take care of an item of business. Before leaving, however,
he stated that whatever policy the Board might decide upon would be
58t16factory to him.
tr?# cl
12/10/57
-12-
Mr. Hostrup then commented that some time ago it had been mentioned
by a bank holding company that it might work a disservice to an applicant
if others were informed that the applicant had in mind the acquisition of
stock in a particular bank. With respect to the application of New
Hampshire Bankshares, however, the proposal covered by the application
had been given publicity in the press, as Mr. Hackley had indicated, and
the applicant had not requested any withholding of information.
Governor Robertson supplemented his earlier comments by saying
that, as contrasted with disclosing the fact of receipt of an application,
he would not favor making available copies of applications under the Act.
Chairman Martin stated at this point that he thought the Board
could go too far in obligating itself to publish everything that might be
received by the Board.
He observed that in most cases only a limited
number of persons had any interest in applications and similar matters.
At the conclusion of the discussion, agreement was expressed that
the policy proposed by Governor Robertson and Mr. Hackley would represent
a satisfactory solution to the problem of handling inquiries about the
receipt of Bank Holding Company Act applications.
In accordance with this
decision, it was understood that counsel for the New Hampshire Bankers
48sociation would be advised of the receipt of the application by New
--yShire Bankshares.
18
A copy of the letter sent pursuant to this action
attached hereto as Item No. 10.
Proposed bill to regulate maximum rates of interest on Government
.9.ns.
g..11a3:aaIa2.21_19
The Board had received a request from the Bureau of the
Bilaget for a report on a proposed bill, apparently submitted by the Treasury
I2
12/10/57
-13-
private credit
Department, intended to "encourage the most effective use of
under Federal loan guarantee and insurance programs."
The bill would provide
that "notwithstanding any other provision of law, the maximum interest rates
on loans guaranteed, insured, or otherwise underwritten by any department
or agency of the Federal Government shall be determined by the head of each
agency with the approval of the Secretary of the Treasury."
A memorandum
copies had been sent to the
from Mr. Solomon dated December 6, 1957, of Which
of -width
members of the Board, suggested several possible replies, the first
'would be to simply state that this would permit maximum rates of interest
on Government guaranteed loans to be adjusted more nearly to conditions in
the open market, that the Board had stated in the past that it 'would favor
such arrangements, and that the Board therefore would favor the bill.
n would
Another possible reply would take the same position but in additio
continuation
suggest the inclusion of language in the bill which would permit
°t* the present arrangements under which maximum interest rates on V-loans
agencies under
are set by the Board after consultation with the guaranteeing
r Vardaman
the V-loan program. Another alternative, mentioned by Governo
tn a discussion of the effects of the proposed bill on the V-loan program,
might be to suggest that the rates on Government guaranteed loans should
be a certain number of percentage points above the average yield in the
Open
y.
market on Government securities of comparable maturit
out that the
In commenting on the matter, Mr. Solomon brought
kain consequence of the bill apparently would be to unfreeze the rates on
Ilk-insured and VA-guaranteed loans.
!1•
51,
(3,
12/10/57
-14-
Mr. Riefler expressed doubt -whether the third alternative suggested
in Mr. Solomon's memorandum would be feasible.
He recalled that the Board's
staff had given quite a bit of thought in the past to the possibility of
such an approach but had been unable to develop any satisfactory formula.
He also said that he would rather dislike to see the proposed bill weakened
by an exception for V-loans, and in this connection he brought out that as
a practical matter the Board does not change the maximum V-loan rate -without
aPpropriate consultation with other interested Government agencies.
In the
circumstances, he would be inclined toward a reply along the lines of the
first alternative.
In this connection, he said that at first he had been
concerned about the possible applicability of this bill to the fixing of
Pederal Reserve discount rates, but that Mr. Solomon was of the opinion
that the bill yould not be applicable to such rates.
The members of the Board present then expressed tentative agreement
141th the views stated by Mr. Riefler.
However, it was decided to defer
action on the matter until Governor Vardaman had returned to the room and
expressed his views.
When Governor Vardaman returned, he said that he could not go along
or any
/lith a proposal which 'would leave to the Secretary of the Treasury
Other official of a Government agency the power of ultimate decision over
Maximum interest rates on Government guaranteed loans and that he did not
consider it fair to place upon such an official the responsibility for
ci ciding the rates to be charged on loans made under "social" legislation.
The Congress, he said, had always reserved unto itself the right to favor
12/10/57
-15-
certain segments of the population under prescribed circumstances, and he
did not feel that it was a good idea to create a "dictator" in the field
Of interest rates affecting programs of this kind.
Under the proposed bill,
he suggested, the Secretary of the Treasury would have it 'within his power
to negate the will of the Congress by fixing rates such that guaranteed
loans would not be marketable.
Instead, he would much prefer to have the
rates of interest tied to some kind of automatic benchmark based on the
Yields of Government securities in the open market.
Following a discussion based on these comments, Governor Vardaman
said he understood from Mr. Boothe that the staff of the Defense Department
/448 considering the matter and probably would recommend that the Department
take a position that the fixing of rates on V-loans should continue under
the present arrangements.
Chairman Martin then stated that the proposed bill did not seem
to be of particular importance at this stage, particularly in view of the
"all likelihood of its being enacted by the Congress.
He suggested,
therefore, that a reply to the Budget Bureau be held up for the time being.
Financing problems of small business (Item No. 11). With a letter
tO
Chairman Martin dated December 6, 19570 Assistant Secretary of the
l'reasury Robbins submitted for comment a draft of proposed letter from
the Secretary of the Treasury to the Administrator of the Small Business
Altainistration which would suggest that, in order to assist in keeping
the financing problems of small business under continuing review, the
12/10/57
-16-
Small Business Administration establish in each Federal Reserve District
a committee of representative small businessmen which would confer
frequently vith the officials of the Reserve Bank in the District and
'ould meet once or twice a year with the Board of Directors of that Bank
for exchange of views and a full discussion of current as well as basic
problems. The letter to the Small Business Administration would point
Ott that the Secretary of the Treasury had made this suggestion in
SPPearing before the House Committee on Small Business on November 21,
1957.
In a discussion of the matter, Chairman Martin stated that this
suggestion was offered by the Secretary of the Treasury as a substitute
tO2 a plan which would, have requested each Federal Reserve Bank to
establish a department devoted to the problems of small business. He
exPressed the view that under the circumstances the proposal of the
S
ecretary would appear to be a preferable alternative.
The suggestion then was made that before a formal reply vas made
to M. Robbins, the Chairmen of the Federal Reserve Banks be advised of
the proposal and asked whether their respective Banks would be willing
to
cooperate in the matter.
Accordingly, it was agreed that a telegram to such effect should
sent to the Chairman, with a copy to the President, of each Reserve
1441k and that Chairman Martin would advise Mr. Robbins that this was
being done. Chairman Martin stated that he had indicated to the Treasury
that he would communicate with them again on Monday regarding the proposed
letter.
3541;
12/10/57
-17-
In this connection, Governor Balderston expressed the hope that the
meetings with the Reserve Bank directors could be held down to not more
than one meeting per year.
Secretary's Note: Later in the meeting a
draft of telegram to the Federal Reserve
Bank Chairmen was read to the Board. Certain changes were agreed upon and the wire
was sent in the form attached as Item No. U.
Mr. Boothe then withdrew from the meeting.
Report on S. 2791.
Pursuant to the understanding at the meeting on
December 2, 1957, there had been distributed to the members of the Board
eoPies of a revised draft of letter, prepared by Mr. Riefler, reporting on
S. 2791, a bill to create a Home Loan Guarantee Corporation.
The proposed
reply would take the position that the public interest would be better
served if the Federal Government had only a single program of insurance of
home mortgages and that this program should be lodged with the Federal
lousing Administration.
'
For this and other reasons stated in the letter,
the view would be expressed that any proposal such as that contained in
Ss 2791 should be examined very carefully in all of its aspects.
Agreement was expressed with suggestions by Governors Balderston and
BhePardson for editorial changes in the proposed letter as well as with a
8Uggestion by Mr. Thomas that, in line with the recorded position of the
Board at times in the past, there be included in the letter a sentence
8tattng that the Board considered it highly undesirable as a matter of
PUblic policy to give tax exemption to particular types of obligations.
-18-
12/10/57
ed
Thereupon, it was agreed unanimously to submit the propos
the
letter to the Bureau of the Budget with a request for advice as to
President, with
relationship of the legislation to the program of the
the understanding that in the absence of comments by the Budget Bureau
r by
Which would indicate that the matter should be considered furthe
the Board, the letter would then be sent to the Chairman of the Senate
request
Banking and Currency Committee in response to the Committee's
for the Board's views on the bill.
the meeting.
Messrs. Thomas, Molony, and Benner then withdrew from
Application of Wisconsin Bankshares Corporation.
There had been
ndum from the
distributed to the members of the Board copies of a memora
Division of Examinations dated December
6, 1957, regarding the appli-
filed
cation of Wisconsin Bankshares Corporation, Milwaukee, Wisconsin,
al of the
Pursuant to the Bank Holding Company Act, for prior approv
of the proacquisition of 2,950 of the 3,000 shares of capital stock
Posed Capitol National Bank of Milwaukee.
Although the Federal Reserve
Bank of Chicago and the Comptroller of the Currency had recommended
favorably on the application, the Division of Examinations suggested
tive
that the application be denied because (1) the applicant's competi
the local area
Position in the City and County of Milwaukee, and in
ng Center was
Within a radius of three miles of the Capitol Court Shoppi
sufficiently strong that it should not be strengthened further in the
that would be supplied
absence of a demonstrated need for banking service
kee Western Bank
Only by the applicant's subsidiary banks; (2) the Milwau
-19-
12/10/57
(formerly the Teutonia Bank) planned to move to a new location just outside the shopping center pursuant to approval granted by the State Commissioner of Banks in April
1956
and there was not believed to be a need
for two additional banks within the three-mile area at this time such
as to counterbalance the adverse considerations involving Wisconsin
Bankshares's competitive strength; and (3) there was a reasonable probability that approval of the current application would confront the
n
Milwaukee Western Bank in its new location with a competitive situatio
that would not be in accord with the apparent intent and purpose of the
Bank Holding Company Act to protect and foster the growth of independent
unit banks.
In a memorandum dated December
6,
1957, of which copies had also
been sent to the members of the Board, the Legal Division expressed the
view that denial of the application would constitute a reasonable exercise
Of the Board's discretion under the law and would be supportable in the
event of judicial review.
At the same time, it was the view of the
application
Division that it could not be said that approval of the
on
would be an unreasonable or arbitrary exercise of the Board's discreti
or that it would be upset upon review by the courts.
d on the appliAt the request of the Board, Mr. Hostrup commente
memorandum from
cation on the basis of the information presented in the
the Division of Examinations.
In this connection, he said that the case
had been thoroughly discussed with Mr. Masters, Director of the Division,
that the staff of the Division was unanimous in its conclusion with
close one, and
respect to this matter, that the case was regarded as a
3549
-20-
12/10/57
that the unanimous conclusion therefore was reached only after very
careful consideration.
He also said that at one stage the processing
Of the application had been suspended at the request of the applicant
to permit the presentation of additional information similar to that
of the
Presented in connection with the application to acquire stock
tion had
Proposed Southgate National Bank of Milwaukee, which applica
been approved by the Board.
In concluding his remarks, Mr. Hostrup
hari objected
brought out that the Wisconsin State Commissioner of Banks
to the application and had urged strongly that it be denied.
He then
the Division of
compared this case with the Southgate case, on which
Examinations had made a favorable recommendation.
After noting the
he said that in
elements of similarity between the two applications,
the view of the Division the essential difference lay in the fact that
in this case an existing State member bank planned to move into the
area and furnish banking services pursuant to an approval dated prior
to the date of the granting of approval to organize the proposed
Capitol National Bank.
made
Mr. Hackley commented in confirmation of the statements
in the memorandum from the Legal Division and noted that inasmuch as
the Federal Reserve Bank of Chicago had recommended favorably on the
Bank an
application, presumably the Board would wish to afford the
°10Portunity to submit its further views and comments if the Board
should be disposed to deny the application.
t)
7:1 "
12/10/57
-21-
The members of the Board then expressed their tentative views,
beginning with Governor Vardaman who said that he thought the Division
Of Examinations had outdone itself in this case in objectively analyzing
and presenting both sides of the matter.
However, he disagreed with the
Division's concept of the intent of the Bank Holding Company Act and
With the conclusion of the Division in this case.
He said that he would
not like to go contrary to the wishes of the State Commissioner of Banks
but that his views on the matter were weighted heavily by the recommendation of the Chicago Reserve Bank.
At the moment, therefore, he would
have to vote to grant the application, and if the majority of the Board
was disposed to deny it, he felt that it would be desirable to check
With the Reserve Bank to see whether the Bank wanted to submit further
comments.
Governor Mills said that to him this application indicated the
value of investigating and analyzing thoroughly each application under
the Bank Holding Company Act on its merits, for such analysis disclosed
major differences between them which would justify differing decisions
from one case to another.
In this instance, he would affirm the recom-
mendation of the Division of Examinations and deny the application.
As
Mr. Hostrup had pointed out, the Southgate case involved a somewhat
similar set of facts, but there were certain important differences.
In
the Southgate case it appeared that the establishment of a new bank by
Wisconsin Bankshares Corporation could be considered strictly along the
lines of a branch application in a State which permitted the establishment
12/10/57
-22-
of branches, while in this case the proposed location was in a sense
"ringed" by existing offices of a subsidiary bank of the bank holding
company.
An independent bank was moving into this area and even though
the independent bank was of such a size that it might be expected to be
able to look out for its own interests, nevertheless the needs of the
community would appear to be quite well served.
Accordingly, he did
not feel that it would be justifiable at this time to authorize Wisconsin
Bankshares to establish a competing bank in the same locality.
If the
matter were studied in the same light as an application for a branch in
a State where the establishment of branches was permitted, he felt that
the conclusion would be to deny the application.
The other members of the Board, except Governor Vardaman,
indicated that their views on this application were similar to those
expressed by Governor Mills.
Accordingly, it was agreed to ask the
Federal Reserve Bank of Chicago whether it wished to submit any further
comment before action was taken on the application.
Mr. Davis then withdrew from the meeting.
Change in reporting date for Form F.R. 240 (Item No. 12). There
had been distributed to the members of the Board copies of a memorandum
from Mr. Young dated December
4, 1957, recommending that the reporting
date for Form F.R. 240, Confidential Report of Member Firm of a National
Securities Exchange, now the last business day in December, be postPoned to the last business day of June 1958, and that no report be required
as of December
1957. This change in reporting dates had been suggested by
12/10/57
-23-
the New York Stock Exchange to minimize member firm reporting burdens
at year-end and also to provide information that would not be distorted
by year-end "window dressing" and other seasonal factors.
Following comments by Mr. Young, the recommendation was approved
unanimously, along with the letter to the Federal Reserve Banks of which
a copy is attached as Item No. 12.
Order for remand in connection with the applications of First
New York Corporation and others under the Bank Holding Company Act
Item No. 13).
There had been distributed to the members of the Board
before this meeting copies of a revised draft of order to remand to the
Hearing Examiner for a report and recommended decision on the merits the
aPplications submitted by First New York Corporation and others for the
Board's approval of certain transactions under the Bank Holding Company
Act.
This draft, which was intended to reflect the discussion at
Yesterday's meeting, was reviewed and it was decided to delete as unnecessary and seemingly redundant the final paragraph, which would state
that the order was not to be considered an expression by the Board of
an opinion regarding the relevance or weight, if any, which should be
given to Article III-B of the New York Banking Law.
Thereupon, unanimous approval was given to an Order in the form
attached as Item No. 13, with the understanding that a press statement
giving the text of the order would be released later today, that the
12/10/57
Order Would
would be published in the Federal Register, and that copies would
be sent to appropriate parties.
All of the members of the staff except Messrs. Carpenter and
Kenyon then withdrew from the meeting.
Federal Reserve Bank budgets for 1958.
A memorandum from the
Division of Bank Operations dated November 21, 1957, analyzing the
significant features of the 1958 budgets submitted by the Federal Reserve
Banks had been distributed to the members of the Board along with a volume
containing digests of the budget proposals, supported by tabular data.
The special committee of the Board consisting of Messrs. Szymczak, Mills,
and Shepardson which was appointed at the meeting on October 11, 1957,
had completed its review of the budget material and at this meeting
Governor Szymczak stated that the committee had arrived at the following
conclusions:
1. The budgets for the operating functions appear to be
in order, and no exceptions are felt to be necessary.
2. The budgets for the Research function show general
Increases, which are a matter of concern. However, it is
suggested that, instead of mentioning this matter in the
budget acceptance letters, it might be desirable for Chairman
Martin to mention the Board's concern to the Presidents at
their next Conference and at that time indicate that the Board
was giving consideration to a comprehensive review of the factors
responsible for the continuing enlargement of our Research activity.
3. That it would be desirable to mention in the budget
acceptance letters to all Banks that the question of membership
dues and contributions was still under consideration and that the
Banks would be further advised in this regard.
-25-
12/10/57
That the expenditures proposed by Cleveland in
connection with their Pittsburgh Branch building and by
Atlanta in connection with the dedication of the new
Birmingham and Nashville buildings (for entertainment and
brochures) were a matter of concern and might be discussed
informally with Presidents Fulton and Bryan.
4.
That a paragraph be put into the Kansas City
acceptance letter requesting that Bank to review its proposed expenditures for "employee relations" for the purpose
of bringing the per capita cost more in line with the cost
at other Banks.
5.
A discussion followed during which Messrs. Leonard, Director,
Farrell, Assistant Director, and Massey, Technical Assistant, Division
of Bank Operations, and Mr. Johnson, Director, Division of Personnel
Administration, entered the room.
After a number of questions with
respect to the budgets had been discussed and resolved, tentative
agreement was expressed that the proposed budgets for the Federal
Reserve Banks for 1958 should be accepted, with language included in
the letters of acceptance reflecting the conclusions of the special
committee of the Board.
This discussion touched upon the procedures
followed in the preparation and submission of the Reserve Bank
their
budgets,
analysis by the Board's staff, and their subsequent review by the
Board, the point being made that, with prospective absences of members
°I' the Board, some difficulties were presented in completing these
Procedures in time to get the budgets considered by the full Board.
With regard to expenditures for the research function at the
Federal Reserve Banks, Governor Szymczak stated that at first the
8Peoial committee of the Board had in mind that the Board should write
'3 59
12/10/57
-26-
to each Federal Reserve Bank in order to call attention to the continued
Upward trend in expenses.
After further consideration, however, the
committee felt that it would be preferable to take this matter up with
the Banks in some other manner because of the various factors contributing
to the increased cost of the function, including the work resulting from
requests made of the Banks by the Board from time to time in connection
With research and statistical projects.
The discussion also covered the level of expenditures relating
to public relations activities and management development Drograms.
It
Was indicated that some difficulty was involved in making comparisons
from one Bank to another because of differences in the allocation of
expenses.
At the conclusion of the discussion, Governor Vardaman suggested
that it would be appropriate for the Board to accept the proposed budgets,
With the comments suggested by the special committee of the Board, and
then to pursue a program of exploring with the respective Banks the
fundamental questions to which reference had been made.
Proposed salaries for officers at Federal Reserve Banks
(Items 14
'LlY'ougb 24, inclusive). The Board then turned to consideration of the
salaries proposed for officers of the Federal Reserve Banks for the
Year 1958.
As a basis for consideration of this matter, therehad been
circulated to the members of the Board a memorandum from the Division of
Personnel Administration dated November 29, 1957, attaching letters or
12/10/57
-27-
pertinent excerpts from letters received thus far from Federal Reserve
Banks making recommendations for salaries of their Presidents and First
Vice Presidents.
There had also been sent to the members of the Board
copies of a memorandum from the Division of Personnel Administration
dated December 5, 1957, reviewing the recommended salaries for Presidents
and First Vice Presidents, and another memorandum of the same date analning and discussing the salaries proposed for other Reserve Bank
officers.
As to the recommendations received in regard to Presidents and
First Vice Presidents, Governor Szymczak indicated that the special
committee would favor approving the recommendation of the Federal Reserve
Bank of Minneapolis to increase the annual salary of First Vice President
Mills from $22,000 to $25,000 and the recommendation of the Federal
Reserve Bank of San Francisco for an increase in the annual salary of
First Vice President Swan from $22,500 to $25,000 per annum.
On the
Other hand, the committee would favor disapproving the recommendation
Of the Federal Reserve Bank of Kansas City for 10 per cent increases in
the salaries of the Bank's President and First Vice President, currently
P3))000 and $25,0001 respectively.
Also, the committee raised a question
about the action which should be taken on the recommendation of the
Federal Reserve Bank of Minneapolis to increase the salary of President
Deming from *30,000 to $35,000 per annum.
He further indicated that
the committee was disposed to approve the salaries proposed for the other
12/10/57
-28-
Reserve Bank officers as submitted by the respective Reserve Banks.
In the case of the New York Bank, however, it was noted that after
giving effect to the proposed salary increases, the compa ratio of
four of the six officer salary groups at the Bank would exceed 100
Per cent. Chairman Bierwirth's letter of November 14, 1957, requesting
aPproval of the proposed salaries had indicated that the Board of
Directors recognized that salaries were generally high in the respective
ranges of groups C, DI E, and F, and Governor Szymczak said that the
committee wished to call this to the Board's attention.
During the discussion which followed concerning the proposed
salaries for the Presidents and First Vice Presidents, agreement was
expressed with the views of the special committee with respect to the
action to be taken on the salaries proposed for First Vice President
Mills at Minneapolis, President Leedy and First Vice President Koppang
at Kansas City, and First Vice President Swan at San Francisco, with
the exception that Governor Vardaman expressed reservations concerning
the increase proposed for Mr. Swan.
With respect to the increase
Proposed for President Deming, it was agreed after considerable discussion that a salary at the rate of $35,000 should be approved
because of his outstanding performance, and despite his relatively
brief period of service in his present capacity.
With respect to the salaries proposed for officers at the New
York Bank, other than the President and First Vice President, it was
12/3.0/57
-29-
toted that two of the larger increases yould apply to officers who
vould reach retirement age early in 1959. Accordingly, it was agreed
that in advising the Reserve Bank of approval of the proposed salaries,
the statement should be made that in the opinion of the Board consideration should be given in the future to the desirability of avoiding
dielloroportionate increases to officers nearing retirement age.
At the conclusion of the discussion, it was agreed to advise
the Chairmen of the respective Federal Reserve Banks that the Board
aPProved the payment of salary to the respective Presidents and First
Vice Presidents for the period January
1, 1958,
through December 31,
1958) at the rates indicated in the letters attached as Items 14 to
2,11) inclusive.
The members of the staff then withdrew from the meeting and
the
Board went into executive session.
Position at Federal Reserve Bank of Kansas City.
Chairman
Martin later informed the Secretary that during the executive session
he
Presented a letter addressed to him under date of December 5, 1957,
bY *. Hall, Chairman of the Federal Reserve Bank of Kansas City, in
yhich Mr. Hall stated that he would like to submit to the Bank's Board
Of pirectors at the meeting scheduled for December 12, 1957, the proposed
ointment of George H. Clay as General Counsel and perhaps, in addition,
Vice President and Secretary of the Bank, with salary at the rate of
$22
/000 per annum. The Chairman stated that he had been authorized
Ct8
12/10/57
-30-
by the Board to advise Chairman Han informally that if the directors
Of the Kansas City Bank should act to approve the appointment, the
Board would be prepared to approve the payment of salary to Mr. Clay
at the rate of $22,000 per annum, effective the date he assumes his
duties at the Reserve Bank, it being understood that Mr. Clay would
terminate his
service as a director of Trans World Airlines, Inc
not later than one year from the date upon which he enters the employ
of the Bank.
The meeting then recessed and reconvened at 2:38 p.m. with
Messrs. Martin, Balderston, Vardaman, Mills, Robertson, and Shepardson,
and Messrs. Carpenter, Johnson, and Daniels of the staff, present.
Federal Reserve Bank budgets.
After some further discussion,
Governor Shepardson moved that the Board approve the budgets of the
Federal Reserve Banks with the following understandings:
I. That at a meeting of the Presidents' Conference
next year, the Board will discuss its concern with the
increasing cost of the research activities of the Banks
and say that it is giving consideration to a comprehensive
review of the factors responsible for the continuing enlargement of these activities.
2. That the letters to the Federal Reserve Banks
advising of acceptance of the budgets will contain a
comment that the question of membership dues and contributions was still under consideration by the Board and that
the Banks will be informed further in this regard.
3. That Governor Szymczak will talk with President
Fulton about the plans for the opening of the new addition
to the Pittsburgh branch building with a view to keeping
•
12/10/57
-31-
expenditures in connection with the opening within proper
limits. He will have a similar talk with President Bryan
With respect to the plans for the opening of the Birmingham
and Nashville branch buildings.
I.
That the letter to the Federal Reserve Bank of Kansas
City will include a request that the Bank review its proposed
expenditures for "employee relations" for the purpose of bringlug the per capita cost more in line with these costs at other
Reserve Banks.
Governor Shepardson's motion was approved by unanimous vote.
There was then a further discussion of the fact that the
special committee appointed by the Board to consider the budgets of the
Reserve Banks had had to push its consideration of the budgets this year
in order that the committee's recommendations could be presented and
acted upon by the Board while all members were present, and that this
situation presented a number of difficulties.
.-g!t:SfP_P1Ia
4
There was unanimous
with a suggestion by Governor Shepardson that early next year
c°nsideration be given to what can be done to avoid this problem in the
consideration of future budgets.
Officers' salaries at Federal Reserve Banks (Items 25 through 36).
G°\rernor Shepardson then submitted the recommendation of the special
c°:mmittee that the salaries for officers of the Federal Reserve Banks
for 19oct
other than the Presidents and First Vice Presidents, be
Proved in the amounts fixed by the respective boards of directors, it
Etl)
being understood that the letter to the Federal Reserve Bank of New York
/1.11 include the following paragraphs:
In reviewing the officers' salaries proposed for the year
1958, it has been noted that two of the larger salary increases
apply to senior officers who will reach retirement age in
12/1o/57
-32-
February 1959. The Board is of the opinion that, in the future,
consideration should be given to the desirability of avoiding
disproportionate increases to officers nearing retirement age.
Also, the Board notes that, after giving effect to January 1,
1958, salary increases, the compa ratio of four of the six officer
salary groups at your Bank will exceed 100 per cent. Your letter
Of November 14, 1957, requesting approval of the proposed salaries
indicates that the Board of Directors recognizes that salaries
in Group CI D, E and F are generally high in their respective
ranges. The Board urges that this widening of the relationship
between salaries and the midpoint of each group receive your
continued attention.
This recommendation vas approved unanimously and the letters sent
t° the Federal Reserve Banks in accordance therewith are attached as
25 through 36.
Board Budget for 1958.
Before this meeting there had been
dis
tributed to the members of the Board copies of the proposed budget
c°vering the cost of the operations of the Board of Governors for the
Yee'r 1958.
Governor Shepardson stated that the procedure approved by
the Board had been followed in the preparation of the budget, that all
Illestionable items had been carefully reviewed with the respective
tivi
-4-on Heads by the Controller, and that adjustments had been made in
a
riumber of items. He also said he had discussed personally with each
kviBion Head the proposed budget for his Division, at which time the
1958 pr
-ogram of activities and the Division budget were discussed.
then
He
recommended that the budget be approved by the Board as submitted.
There vas a discussion of a number of the items contained in
the pro
Posed budget, including particularly the matters discussed in
12/10/57
_33
the memorandum presenting the budget.
At the conclusion of the discussion,
the budget
was approved unanimously as follows:
PERSONAL SERVICES
$3,663,534
Salaries
482,309
Retirement Contributions 0400000000
Employee Insurance00000 ****** 40000
30,737
210,000
General Pay Increase OOOOO *000000
l2/352
Official Staff Increases 00 OOOOO 000
TOTAL PERSONAL bEEVICES
OOOOO
$4,3982932
NONPERSONAL SERVICES
OOOOO 00004
Traveling Expenses
Postage and Expressage* OOOOO •••••
Telephone and Telegraph
Printing and Binding
Stationery and Supplies * 4 OOOOO 400
Furniture and Equipment O 00 OOOOOOO
OOOOOO OOOOOOOO 0*
Rentals....
Books and Subscriptions OOOOOOO 04/0
Heat, Light and Power
Repairs and Alterations (Building
OOOO
and Grounds),
Repairs and Maintenance (Furniture
and Equipment)00 OOOOO 0• OOOOOO.
Insurance
All Other
308,900
53,082
84,114
284,333
44,029
541,945
41,470
18,200
45,700
7,145
24,413
8,605
474,526
TOTAL NONPERSONAL SERVICES...... O OOO 00042441 9362462
TOTAL BUDGET... O OOOOOO Q00400000000 OOOOOOOO$6,335,394
The meeting then adjourned.
Secretary's Note: Pursuant to the recommendation contained in a memorandum dated
December 5, 1957, from Mr. Leonard, Director,
Division of Bank Operations, Governor Shepardson
3563
today approved on behalf of the Board the
appointment of Paul D. Ring as Technical
Assistant in that Division, with basic
annual salary at the rate of $7,035,
effective January 2, 1958.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item Ye. 1
12/10/57
WASHINGTON 25. D. C.
ADDRESS
orrict^L
CORRESPONDENCE
TO THE BOARD
December 10, 1957
CONFIDENTUL CF.R.)
Alfred Hayes, President,
Federal Reserve Bank of New York,
New York
451 New York.
Dear Mr. Hayes:
Reference is made to your letter of November 13, 1957, in
which your Bank requests the approval of upward adjustments in the
:
alarY structures applicable to the employees of your Bank and the
ourfalo Branch.
for
the
The Board approves the following minimum and maximum salaries
grades of the various structure:3 effective immediately.
CLERICAL
Head Office
Grade
MiFIEUR-557r7Fy
Maximum Salary
1
2
$2,300
2,508
$3,105
3,386
3
4
5
6
7
8
9
10
11
12
13
14
15
16
2,740
3,120
3,540
3,882
4,253
4,654
5,100
5,604
6,169
6,807
7.534
8,351
9,286
110,370
3,699
4,212
4,779
5,2141
5,742
6,283
6,885
7,565
8,328
9,1fl9
10,171
11,274
32,536
14,000
3565
Mr. Alfred Hayes
- 2-
CLERICAL
Buffalo
Minimum Salary
Grade
1
2
3
4
5
6
7
8
9
lo
11
12
13
14
15
16
Maximum Salary
$2,198
2,407
$2,967
3,249
2,639
21900
3,188
3,503
3,846
4,216
4,627
5:094
5,614
6,204
6,876
7,630
8,494
9,494
3,563
3,915
4,304
4,729
5,192
5,692
6,246
6,877
7,579
8,375
9,283
10,300
11,467
12,817
NON-CLERICAL
Head Offfce and Buffalo
Minimum Salary
Grade
Maximum Salary
1
2
$2,300
2,432
$3,105
3,283
3
4
5
6
7
8
9
Io
11
2,575
2,741
2,940
3,180
3,464
3,803
4,209
4,678
5,183
3,476
3,700
3,969
4,293
4,676
5,134
5,682
6,315
6,997
SPECIAL SALARY RAMIES FOR PHYSICIANS
Grade
Physicians
Medical Director
Minimum Salary
$5,200
10,200
Maximum Salary
$8,350
13,000
Mr. Alfred Hayes
- 3-
The Board approves the payment of salaries to the employees,
other than officers, within the limits specified for the grades in
.
which the positions of the respective employees are classified. It
le understood that all employees whose salaries are below the minimum
of their grades as a result of the structure increase will be brought
within the appropriate ranges by March 1, 1958.
The Board understands that while the 1957 expense arising
these
"
f 14
structure changes will exceed the amount budgeted in 1957,
the 1958 expense
has been provided for in the 1958 budget.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Assistant Secretary.
?,.fikc6
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
Item No, 2
12/1157
NOORESS OrVICIAL CORRESPONDENCE
TO THE BOARD
1)ecember 10, 1957
Mr. Arthur B. Van Buskirk,
Federal Reserve Agent,
Federal Reserve Bank of Cleveland,
Cleveland
1, Ohio.
Dear Mr. Van
Buskirk:
In compliance with the request contained
No vember
25, 1957, the Board of Governors approves
,4r. Clarence J.
Goudreau to the full time position
ederal Reserve Agent to succeed Mr. Roy M. Trout,
end of the
current year.
t
in your letter received
the appointment of
of Assistant
who retires at the
This approval is given with the understanding that Mr. Goudreau
111 be
solely responsible to the Federal Reserve Agent and the Board
Of Gov
ernors for the proper performance of his duties, except that,
the absence or disability of the Federal Reserve Agent or a
Gvacancy in that Office, his responsibility will be to the Board of
ov
ernors.
When not engaged in the performance of his duties as Assistant
.'ederal.
Agent Mr. Goudreau may, with the approval of the
'Fede
an ral
Reserve Agent and the President, perform such work for the Bank
4 will not be inconsistent with his duties as Assistant Federal Reserve
Age
It will be appreciated if Mr. Goudreau is fully informed of
the
pede--t,ortance of his responsibilities as a member of the staff of the
ra4 Reserve Agent and the need for maintenance of independence from
the o
Perations of the Bank in the discharge of these responsibilities.
or off, It will also be appreciated if Mr. Goudreau's executed oath
Ice is forwarded to the Board with advice of the effective date
Lie
appointment*
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 3
12/10/57
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADURESS OFFICiAL CORRESPONDENCE
TO THE BOARD
December 10, 1$57
lir* H. J. Newman, Vice President,
Federal Reserve Bank of Chicago,
Chicago 90, Illinois.
Dear Mr. Newman:
The Board approves the payment of salary by the
Federal Reserve Bank of Chicago to incumbents of the positions
listed below at the rates shown, effective September 30, 1957,
in accordance
with the request contained in your letter of
November 20, 1957:
Annual Salary
Titaie
Janitors
Paper Balers
Metal Polishers
Scrubbing Machine Operators
Janitresses
Janitresses (6 months or less)
M
Matrons
$ 4,316.00
4,451.20
4,451.20
4,451.20
3,265.60
3,203.20
3,265.60
As stated previously, the Board believes it undesirable
to co
mit itself to future salary adjustments and suggests that
the
t Y be submitted for consideration at the time the Bank wishes
o make them
effective.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No.
WASHINGTON 25. O. C.
12/10/57
4
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 10, 1957
Mr. Frank C.
Irvine, President,
First National
Bank in Tarentum,
Tarentum, Pennsylvania.
Dear Mr.
Irvine:
This refers to your letter of November 19, 1957, addressed
Governor Robertson, regarding the question whether a violation
SeCtion ln
of the Federal Reserve Act and the Board's R.2gu1ain°n
would
be
involved if your Bank, in connection with the openrig Of
a new branch office, should offer to new depositors a set of
1.‘jr::tverwa1e (costing your Bank $1.25 per set), consisting of a salad
k and spoon, to each new depositor making a• deposit of $100 or
More
to
Of
theThe Board does not look with favor upon the practice on
'
a
'
- 6 of member banks of giving articles of value to depositors
as
n
inducement for the opening of deposit accounts, principally
bee
between of the difficulty of drawing a dollar-and-cents distinction
ma
,
!
- en "give-aways" that represent mere advertising and those that
1)1,,Je -Lnvolve an indirect payment of interest on deposits. In the
arj
ent case, however, because of the insigncant value of the
,
i 'cies involved and because it is understood that they will be
.10-clren. +- ,
h-u aepositors only in connection with the opening of a new
bran,
i°ffice, the Board would not be disposed to consider the giving
Of
est-`4er,'trticles in such circumstances as an indirect payment of interOn deposits.
Very truly yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
BOARD OF GOVERNORS
OF THE
Item No.
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS
orriciAL
CORRESPONDENCE
TO THE BOARD
December 10, 1957
By mEssENGER
ThQ Honorable,
The Comptroller of the Currency,
Washington 25, D. C.
My dear Mr. Comptroller:
In accordance with the provisions of section 3(h)
of the Bank Holding Company Act of 1956, you are advised that
New Hampshire Bankshares, Inc., Nashua, New Hampshire, a bank
holding company, has made application to this Board for prior
approval by the Board of the acquisition of up to 60 per cent
of the
capital stock of The New Hampshire National Bank of
Portsmouth, Portsmouth, New Hampshire. There is enclosed for
Your information a copy of the application.
It will be appreciated if you will advise the Board
in writing of your views and recommendations with respect to
this
application.
The date of receipt of this letter by your office must
be made a part of the Board's records with respect to the applicati011. Therefore, it will be appreciated if the enclosed copy
of the letter is signed and returned with the date of receipt
indicated thereon.
Very t
ours,
S. R. C rpenter,
Secretary.
Enclosure
5
12/10/57
BOARD OF GOVERNORS
0111111.}
'*
ow4k4.10t,
4,*
OF THE
FEDERAL RESERVE SYSTEM
Item No. 6
12/10/57
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
*,,,fttmtste:::
TO THE BOARD
December 10, 1557
The Honorable Jesse P.
Wolcott,
C
hairman,
Federal Deposit Insurance Corporation,
Wadhington
25, D. C.
Dear Hr. Wolcott:
Reference is made to your letter of November 25$
concerning the application of The Peoples Savings
Bank Company Martins Ferry
) Ohio, for continuance of deposit
in8
urance after withdrawal from membership in the Federal
serve System.
No corrective programs which the Board of Governors
believes should be incorporated as conditions to the continuancebankof
deposit insurance have been urged upon or agreed to by
the
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Assistant Secretary.
r'11)
BOARD OF GOVERNORS
OF THE
Item No. 7
12/10/57
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 10, 1957
The
C Honorable Jesse P. Wolcott,
hainnan,
Federal Deposit Insurance Corporation,
Wa
shington 25, D. C.
Dear Mr.
Wolcott:
This will acknowledge your letter of November 21, 1957, in which
n°1-1 re
WeEit permission to review and take excerpts from the Board's files
of
Devon-North Town State Bank of Chicago, a member State bank, in
to ,nion with pending litigation. You have also requested permission
off;rlew and take excerpts from similar files at the Federal Reserve Bank
'flicago.
e
,:
col
The Board would be glad to permit a representative of the Federal
p nit Insurance Corporation to review such files in the office of Mr. Henry
elr,
ge
to-rr, Assistant Director of the Division of Examinations, who would arrange
tiserve designated portions of the files, if necessary, photostated for your
Berine It is suggested that your representative make arrangements with Mr.
r as to
the time hewould came to the Board's offices.
In respect to similar files at the Federal Reserve Bank of Chicago.
tt is
Prosi suggested that you communicate directly with Mr. W. R. Diercks, Vice
i,
r ent Department of Bank Examinations, Federal Reserve Bank of Chicago,
Chic:,
90, Illinois. The Board will also notify Mr. Diercks of your request.
the
Copies of documents, or excerpts therefrom, will be furnished with
Board and will
bueierstanding that they will remain the property of the
tlot „_ld
made public or used as evidence.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Assistant Secretary.
4
UNITED STATES OF AMERICA
Item No. 8
12/10/57
BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
In the Matter of
the Application of
BRENTON COMPANIES,
DES MOINES, IOWA
for Approval of Acquisition
of Voting Shares of
PALO ALTO COUNTY STATE BANK,
EMMETSBURG, IOWA
STATEMENT
Pursuant to section 3 of the Bank Holding Company Act of 1956
(hereafter referred to as the Act) an application was filed with the
Board by Brenton Companies, Des Moines, Iowa, a bank holding company
under the Act, for prior approval by the Board of the acquisition by
Brenton Companies of direct ownership of 13 of the 1500 outstanding
Shares of Palo Alto County State Bank, Emmetsburg, Iowa.
by
As required
section 3(b) of the Act, the Board gave notice of the application to
the Superintendent of Banking of the State of Iowa, and requested his
views and recommendations, and the Superintendent of Banking responded
by
stating that he knew of no reason to object to the proposed purchase
ef such stock by Brenton Companies.
Under section 3(c) of the Act, in determining whether cr
tlot to approve an application the Board is required to take into
e°neideration five stated factors: "(1) the financial history and
"ndition of the company or companies and the banks concerned; (2) their
Prospects; (3) the character of their management; (4) the convenience
357
needs, and welfare of the communities and the area concerned; and
con(5) whether or not the effect of such acquisition or merger or
the bank holding
solidation would be to expand the size or extent of
company system involved beyond limits consistent with adequate and
sound banking, the public interest, and the preservation of competition in the field of banking."
the light of
The facts of this case have been considered in
these statutory standards. It appears that the considerations with
ed
respect to the first three factors are favorable, and that the propos
acquisition of 13 additional shares of an existing bank, of which the
in
applicant presently owns 501 of the 1500 outstanding shares, would
n° waY affect the convenience, needs, or welfare of the communities
extent of the
and the area concerned, and would not expand the size or
applicant's system of banks.
of tht,
On the basis of the facts of the case and in the light
application
statutory
factors, it is the judgment of the Board that this
should be approved, and it is so ordered.
3575
UNITED STATES OF AMERICA
BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Item No. 8
12/10/57
In the Matter of
the Application of
BRENTON COMPANIES
for Approval of Acquisition
Of Voting Shares of
PALO ALTO COUNTY STATE BANK,
EMMETSBURG, IOWA
ORDER
The above matter having come before the Board on the
415Plication of Brenton Companies, Des Moines, Iowa, filed pursuant
to the provision of section 3(a)(2) of the Bank Holding Company
Aet of 1956, for prior approval of acquisition by Brenton Companies
Of
direct ownership of 13 of the 1,500 outstanding shares of the
1'410 Alto County State Bank, and it appearing after due consider4tion thereof in the light of the factors enumerated in section 3(c)
Of the Bank Holding Company Act of 1956 that such application should
be
granted,
IT IS HEREBY ORDERED that the said application be and
4erOoy is
granted and the acquisition by Brenton Companies of direct
cllinershiP of 13 of the 1,500 outstanding shares of capital stock of
Alto County State Bank, Emmetsburg, Iowa, is hereby approved,
Provided that such acquisition is completed within three months from
the date
hereof.
This 10th day of December 1957.
By order of the Board of Governors.
(SUL)
Was
hington, D. C.
Decelliber 10, 1957.
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
`3,5'713
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
Item No. 9
12/10/57
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 10, 1957
r. 11. A. Bogdan., President,
Aallerican Overseas Finance Company,
30 Pine Street,
reIr York 5, 1401,7 York.
Dear iir. Dor:dan:
In accordance with the request and on the basis of the
information contained in your letter of October 11, 1957, transtutted throunh the Federal Reserve Dank of New York, the Board
,of Governors grants its consent to your Company to acquire and
hold up to 10 per cent of the common stock of Panamerican
Commodities, S. A., Lima, Peru.
The Board's approval is given with the understanding
that the proposed acquisition and holding of stock will be made
as an incident to the proposed financing of Panamerican Commodities,
A. and without additional payment by you for the stock as out'fled in your letter, rather than for the primary purpose of making
a. direct
long-term investment in Panamerican Commodities, S. A.;
that
American Overseas Finance Company- will dispose of the stock
thin a reasonable time after the termination of substantial
;"edit or financing relationships with Panamerican Commodities,
t 4-; and that American Overseas Finance Company will be expected
,° dispose of the stock of Panamerican Commodities, S. A., as
zjj°11iPtly as practicable in the event that any activities or opera04.°ns of Panamorican Commodities, S. A., or the holding by your
IParlY of the stock of Panamerican Commodities, S. A., should at
47",Y time be inconsistent with the provisions of Section 25(a) of
Ile Federal Reserve Act or re,-Nlations thereunder.
'
Z
In the last parap:raph of your letter you state that you
-re presently considering a number of other proposed loans where!
by,You
would receive stock incidental thereto; that you anticipate
th
additional similar transactions will occur from time to time
the future; and that, in every case, the other terms and condiof the loans will be determined on the basis of your evaluation
't°ns
o
all applicable credit factors. You reauest that the Board of
• overnors determine whether you may obtain advance approval to
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
11r. N. A. Bogdan
- 2-
acquire and hold stock as described in the case of the arranrements
with Panamerican Commodities, S. A., subject to the statutory limitations set forth in Section 9(d) of Regulation K, or whether it will
be necessary to submit additional applications in each case.
The Board rrants its general consent to American Overseas
Finance Company- to acquire, without additional payment by you, and
to hold stock received in connection with loan or credit transactions,
subject to the same understandings indicated above with respect to
the stock of Panamerican Commodities, S. A., and the first sentence
of
. section 9(c) of Regulation
provided that the terms and conditlons of the loans or credits are determined on the basis of an
evaluation of applicable credit factors; that such loans or credits
properly be made within the provisions of Section 25(a) and
4-egul3ti01. K; and that in no case shall the amount of stock of any
corporation so acquired and held represent more than 25 per cent of
aq7 class of stock of the corporation.
With respect to any such stock acquired pursuant to this
consent, American Overseas Finance Company will be expected to
notify the Board of Governors Promptly of such acquisitions as they
cccur and to furnish the Board of Governors within thirty da:rs after
,ccluisition: (1) a balance sheet of the corporation whose stock has
'sen acquired, showing the financial position of the corporation as
of a recent date; (2) a brief description of the business of the
?Prporation; (3) a list of officers and directors, with addresses;
description of the stock acauired; (5) information concerning
t le
)a
rights and privileges of the various classes of stock of the
corporation outstanding; and (6) a brief summary of the loan or
2.edit transaction with the corporation in connection with which
6ne stock was received.
Very truly yours,
(Signed) Merritt Sherman
Nerritt Sherman,
Assistant Secretary.
3578
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 10
12/10/57
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 100 1957
Mr. James B. Godfrey, Counsel for
New Hampshire Bankers Association,
Care of Sulloway Hollis Godfrey & Soden,
9 Capitol Street,
Concord, New Hampshire.
Dear Mr. Godfrey:
requesting
This refers to your letter of November 291 1957,
tion
applica
an
that you be advised if and when the Board receives
to
res
Banksha
Under the Bank Holding Company Act by New Hampshire
of
Bank
l
acquire a controlling interest in New Hampshire Nationa
Portsmouth, New Hampshire.
an appliThis is to inform you that the Board received such
cation from New Hampshire Bankshares on November 21, 1957.
Very truly yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
TELEGRAM
Item No. 11
LEASED WIRE SERVICE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
12/10/57
December 10, 1957
TO THE CHAIRMEN OF ALL FEDERAL RESERVE BANKS
WITH COPY TO PRESIDENTS
CONFIDENTIAL (FR)
There is quoted below a draft of letter which the Secretary
of the Treasury would like to send to Small Business Administration
on financial problems of small business.
Board have been asked if
araft is satisfactory and would appreciate advice by wire whether
Your Bank would be willing to cooperate in the procedure outlined
in draft.
This wire being sent to Chairman of each Federal Reserve
Bank with a copy to each President.
(Here quote letter)
MARTIN
DRAFT
12/5/57
Honorable Wendell B. Barnes
Administrator
Small Business Administration
W ashington 25, D. C.
Dear Mr. Barnes:
In discussing with you the problems of small business, the activities
Your Agency in that field, and the deep interest which the Administration
has in the welfare of this vital segment of our economy, I suggested the
de sirability of an additional method of approach.
financial
MY suggestion was that in order to assist in keeping the
Problems of small business under continuing review the SBA establish in
each Federal Reserve District a committee of representative small businessFederal Reserve
Ille4 which would confer frequently with the officials of the
13ank in its district, and would meet once or twice a year with the Board of
Directors of that Bank for an exchange of views and a full discussion of curl'ent as well as basic problems. I feel that the points of view represented
alici the ideas developed in such meetings would help materially toward a more
"rnplete understanding of the obstacles and needs connected with the adequate
financing of small business.
I have discussed this proposal with Mr. William McChesney Martin,
Chairman of the Board of Governors of the Federal Reserve System, and
hay
e been assured by him that the Federal Reserve System would cooperate
full
Y with such committees. In my appearance before the House Committee
1 S
,43
2On Small Business on November 21, I testified that I had made this recommendation. You have told me that it is acceptable to you, and I hope you
will find it possible to act on it and establish the suggested committees in
the near future. I shall be interested in following the developments.
Sincerely yours,
Secretary of the Treasury
BOARD OF GOVERNORS
OF THE
44 to OP Gov.*4,
FEDERAL RESERVE SYSTEM
q!" lakit*
*
tq
4
*
0
s0
0
44
*
s-1645
Itep No. 12
12/10/57
WASHINGTON 25, D. C.
ADDRESS
orricIAL
CORRESPONDENCE
TO THE BOARD
.ttta•
4
2
December 10, 1957.
Dear sir:
You were advised by letter dated December 19, 1956, subsequently
nfirmed by letter dated July 23, 1957 (S-1636; F.R.L.S. 117801), that
r ePorts on Form F.R. 240 (Confidential Report of Member Firm of a National
ecurities Exchange) need no longer be submitted by member firms of the
1,/ York Stock Exchange on a semi-annual basis, but should be compiled as
.
thQ last business day of December of each year.
o
r
In order to minimize the burden of compliance for reporting
frms and eliminate year-end seasonal factors, the board has approved a
%84ge of reporting date from the last business day of December to the
rest busin,Jus day of June of each year. Consequently, no report will be
tel4ired as of the end of December of this year. It will not be necessary
advise reporting firms of this change since arrangements are being made
for the
New York Stock Exchange to notify them.
ad hoc subForm F.R. 240 is now in the process of review by an
()0/11!littee of the System Committee on Currant Reporting Series with a view
1:mprovement in statistics on security brokers and dealers. You will be
'uvlsed prior to June 1958 of any changes in the reporting form.
replaces the Board's letter of July 23, 1957 (S-1636;
#7801) on this subject.
Very truly;"Ibid.-
stZ6
S. R. Carpenter,
Secretary.
T0 THE
PRESIDENTS OF ALL FEDERAL RESERVE BANKS
UlITEll STAUS OF t.11.:RICA
Item No. 13
12/10/57
BEFORE THE BOARD OF GOVIANORS OF THE FEDERAL RSERVE SYSTEM
In the Matter of the Applications of
1
FIRST. NEW! YORK CORPOI.IATION,
'THE FIRST NATIONAL CITY HMI OF NEW YORK,
DOCKET NUMBERS
and
INTERNATIONAL BANKING CCRPORATION
BHC - 1
BHC - 2
BHC - 3
-r prior approval of action to become
I bank holding companies under Section 3
Of the BTT
CompanyA .. of
•
•ro
ORDER FOR MIAND TO HEARING EXAMINER
Applications were made by the above-named parties to
the Board of Governors of the Federal Reserve System, pursuant to
ee
'
lti°n 3(a) of the Bank Holding Company Act of 1956, for the prior apPr°val by the Board of certain actions described in such applications;
PlIreUant to the
Board's Order of December 26, 1956, a public hearing was
be
on these applications on January 24, 1957, before a duly designated
Heal-11g Examiner; after the conclusion of that hearing the Hearing
44Miner under date of October 3, 1957 filed with the Board his Report
"
Recommended
Decision; and oral arguments on that Report and Recom-
tnended Decision were heard by the Board on November 26, 1957. Since
the
Hearing Examiner's Report and Recommended Decision related principally
to the
legal consequences of Article III-B of the New York Banking Isw
411(1 made no recommendations on the merits of the subject app1icationf:0
k.
2..
and since the Board deQms it desirabla to have the benefit of the
views and recommendations of the Herring Examiner with respect to
all factors and circumstances affecting the merits of such applications,
IT IS ORDERED, That this matter be and hereby is remanded to
the Hearing Examiner for submission by him to the Board of a further
Report and Recommended Decision setting forth, on the basis of the
hearing record, his views and recommendations with respect to the merits
ef the subject applications in the light of all of the provisions of
the Bank Holding Company Act of 1956, including consideration of the
extent if any, to which factual weight should be given Article III-B
ef the New York Banking Law, but irrespective of the question as to
the legal consequences of such Article III-B which has already been
dealt with in the Hearing Examinerls Report and Recommended Decision
or October 3, 1957; and
That such further Report and Recommended Decision be
submitted to the Board by the Hearing Examiner as soon as feasible
and not later than
45 days from the date of this Order.
This 10th day of December 1957.
By order of the Board of Governors.
S. R. Carpenter,
Secretary.
(SEAL)
Wa
Deshington, D. C.
cember 10, 1957
BOARD OF GOVERNORS
OF THE
Item No. 14
12/10/57
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 17, 1957.
.P.911ELEEETILL_IfE/
Mr. Robert C. Sprague, Chairman,
Federal Reserve Bank of Boston,
Boston 6, Massachusetts.
Dear Mr.
Sprague:
The Board of Governors approves the payment of
salary to Mr. Erickson as President of the Federal Reserve
I,ank of Boston, for the period January 1, 1958 through
uecember 31, 1958, at the rate of $350000 per annum, if
so fixed by the Board of Directors.
The Board of Governors approves the payment of
!alary to Mr. Latham as First Vice President of the Federal
Reserve Bank of Boston, for the period January 1, 1958
through December 31, 1958, at the rate of $251000 per annum,
l'hlch is the rate fixed by the Board of Directors as rePorted in Mr. Erickson's letter of November 8, 1957.
Very truly yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
Ir-S(74
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 15
12/10/57
WASHINGTON 25, D. C.
ADDRESS OrFICIAL CORRESPONDENCE
TO THE BOARD
December 17, 1957.
211LUIELK_.(fli
Mr. John E. Bierwirth, Chairman,
Federal Reserve Bank of New York,
New York 45, New York.
Dear Mr. Bierwirth:
The Board of Governors approves the payment of
slaries to Mr. Hayes as President and to Mr. Treiber as
First Vice President of the Federal Reserve Bank of New
York, for the period January 1, 1958 through December 31,
1958, at the rates of $60,000 and $35,000 per annum,
respectively, which are the rates fixed by the Board of
Directors
as reported in your letter of November 14, 1957.
Very truly yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
358'
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 16
12/10/0
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 17, 1957
22.E1
:
112EELLLL_LEE2
Mr. William J. Meinel„
Chairman,
Federal Reserve Bank of Philadelphia,
Philadelphia
1, Pennsylvania.
•
Dear Mr. Meinel:
of salaries
The
. Board of Governors approves payment
to mr.
willians as President and to Mr. Davis as First Vice
rresident
of the Federal Reserve Bank of Philadelphia, for the
!
If°e3 rlod January 1, 1958 through December 31, 19580 at the rates
_r 035,000 and $25,000 per annum, respectively, which are the
!'ates fixed by the Board of Directors as reported in Mr. Williams'
letter of October 30, 1957.
Very truly yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 17
12/10/57
WASHINGTON 25. D. C.
ADDRESS OFF1CIAL CORRESPONDENCE
*0,41E16
TO THE BOARD
444***
December 17, 1957.
CO
NFIDENTIAL (FR
Mr. Arthur B. Van Buskirk,
Chairman,
Federal Reserve Bank of Cleveland,
C
leveland 1, Ohio.
Dear Mr, Van Buskirk:
The Board of Governors approves the payment of
salaries to Mr. Fulton as President and to Mr. Thompson
First Vice President of the Federal Reserve Bank of
t,;leveland for the period January 1, 1958 through
Dec'ember 31, 1958, at the rates of $35,000 and $25,000
er annum, respectively, which are the rates fixed by the
moard of Directors as reported in Mr. Fulton's letter of
Liovember 14, 1957.
R
Very truly yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
BOARD OF GOVERNORS
44,tettv#
OF THE
FEDERAL RESERVE SYSTEM
4
3.4
A:
Item No, 18
12/10/57
WASHINGTON 25, D. C.
ADORES
FICSAL CORRESPONDENCE
TO THE HOARD
044.0December 17, 1957,
.9.2EIREETILIELI
Mi. Walter M. Mitchell, Chairman,
Federal Reserve Bank of Atlanta,
Atlanta 3, Georgia.
Dear Mr.
Mitchell:
The Board of Governors approves the payment of
salaries to Mr. Bryan as President and Mr. Clark as First
Vice President of the Federal Reserve Bank of Atlanta,
for the period January 1, 1958 through December 310 1958,
at the rates of $35,000 and $25,000 per annum, respectively,
if so fixed by the Board of Directors.
Very truly yours,
(Signed) S. R. Carpenter
R. Carpenter,
Secretary.
IP,41590
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
Item No. 19
12/10/57
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 17, 1957.
CO
NFIDENTIAL (FR)
Mr. Bert R.
Prall, Chairman,
Federal Reserve Bank of Chicago,
Chicago 90, Illinois.
Dear Mr. Prall:
The Board of Governors approves the payment of
!,laries to Mr. Allen as President and to Mr. Harris as
z:lrst Vice President of the Federal Reserve Bank of Chicago,
ror the
at the period January 1, 1958 through December 31, 1958,
rates of $50,000 and $30,000 per annum, respectively,
which are
the rates fixed by the Board of Directors as
reported in
Mr. Dawes' letter of November 27, 1957.
Very truly yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
.35
(
41
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
Item No. 20
12/10/57
ADDRESS OFFICIAL CORRESPONDENCE
TO TI-4E BOARD
December 17, 1957.
CO
NFIDENTIAL (FR)
Mr. Pierre B. McBride, Chairman,
Federal Reserve Bank of St. Louis,
St. Louis 2, Missouri.
Dear Mr.
McBride:
The Board of Governors approves the payment of
salaries,
to
Mr. Johns as President and Mr. Freutel as
F,./sr,
•
F
tirst Vice President of the Federal Reserve Bank of St.
Icons, for the period January 1, 1958 through December 31,
siDo, at the rates of $35,000 and $20,000 per annum, re1,14 ctively, as indicated in Mr. Johns' letter of November 13,
7)7, if so fixed by the Board of Directors.
Very truly yours,
(Signed) S.
a,
Carpenter
S. R. Carpenter,
Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 21
12/10/57
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 17, 1957.
CON
FIDENTIAL (FB)
Mr. Leslie
N. Perrin, Chairman,
Federal Reserve Bank of Minneapolis,
Minneapolis 2, Minnesota.
Dear Mr,
Perrin:
The Board of Governors approves the payment of
sala_z
Deming as President and to Mr. Mills as
7,r4 Vicel°
Ptident of the Federal Reserve Bank of
:.-Lnneapolis, for the period January 1, 1958 through
uecember 31, 1958, at the rates of $35,000 and $25,000
Per
rum, respectively, which are the rates fixed by
theob
:/1,
07
91.x.irtors as reported in your letter of
Very truly yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
3593
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 22
12/10/57
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 17, 1957.
Z
ITIPLEIMALLEL
Mr. Raymond W. Hall, Chairman,
Federal Reserve Bank of Kansas City,
Kansas City 6, Missouri.
Dear Mr. Hall:
The Board of Governors has considered the salary
Proposals for your President and First Vice President as
?lltlined in your letter of November 13 and believes that
salaries should not be approved for amounts in excess of
Z35,000 for the President and $25,000 for the First Vice
President at
this time.
Accordingly, the Board of Governors approves the
1:Yment of salaries
to Mr. Leedy, as President, and
KoPpang, as First Vice President, for the period Jani;1
,
7 1, 1958 through December 31, 1958, at the rates of
;_,J7,000 and $25,000 per annum respectively, if so fixed
0Y the Board
of Directors.
Very truly yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
359
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 23
12/10/57
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December
17, 1957.
CONFIDENTIAL
(FR)
Mr. Robert J.
Smith, Chairman,
Federal Reserve Bank of Dallas,
Dallas 2, Texas.
Dear Mr. Smith:
The Board of Governors approves the payment of
al
to Mr. Irons as President and. to Mr. Gentry as
First Vice President of the Federal Reserve Bank of Dallas,
for the
period January 1, 1958 through December 31, 1958,
't the
rates of $35,000 and $25,000 per annum, respectively,
lf so fixed by the Board of Directors.
Very truly yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 24
12/10/57
FEDERAL RESERVE SYSTEM
WASHINGTON 25. 0. C.
ADDRESS OPFICIAL CORRESPONDENCE
TO THE BOARD
December 17, 1957.
&(FR)
Mr. A. H.
Brawner, Chairman,
Federal Reserve Bank of San Francisco,
San Francisco 20,
California.
Dear Mr. Brawner:
The Board of Governors approves the payment of
Sal
to Mr. Mangels as President and to Mr. Swan as
..1,.,1rst Vice President of the Federal Reserve Bank of San
.!'rancisco, for the period January 1, 1958 through
uecember 31, 1958, at the rates of $35,000 and $25,000 per
;
influx) respectively, which are the rates fixed by the
Boa'"of
Directors as reported in Mr. Mangels' letter
of October 11,
1957.
Very truly yours,
(Signed) S. R. Carpen
S. R. Carpenter,
Secretary.
35...it
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C,
Item No, 25
12/10/57
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 13, 1957
CaNP FNTIAL
(FR)
Robert C. Sprague, Chairman,
rederal Reserve
Bank of Boston,
Boston z,
0 Massachusetts.
Deal' Mrs
Sprague:
The Board of Governors approves the payment of salaries to the
Janua ng officers of the Federal Reserve Bank of Boston for the period
,Y 1$ 1958 through December 311 19581 at the rates indicated, which
are tlr
letter
-e rates fixed by your Board of Directors as reported in Mr. Ericksonls
Of November 81
1957:
Name
I), Harry
An
AnsgargneY
R. Berge
George •H
.Ellis
e
/3.rijamin F
oohn E. .Groot
barla D. towe
Sawyer
()3ear
t 'A• Schlaikjer
lliot S.
Boar•dman
,driard
',avid L. O'Neil
Strong
Charles E0
Turner
l'it'llace
?rank C.Dickson
Gilbody
R, King
ker Bo
,0414 A, Willis
Zehner
rrillg C'Nye
4111rence Ho
Gt
Stone
Gordon Watts
!:
!
Title
Annual
Salary
$17,000
Vice President
16,000
Vice President
Vice President and Director of Research 15,000
140500
Vice President
141500
Cashier
15,500
Vice President
21,000
Vice President and General Counsel
13,500
Assistant Vice president
141000
Assistant Vice President
14,000
General Auditor
12,500
Assistant Vice President
13,500
Director of Public Information
lli1000
Assistant Vice President
12,000
Assistant Vice President
12, T0
Economic Advisor
1305C0
President
Vice
Assistant
12,000
Assistant Cashier
11,000
Counsel
Assistant
Secretary and
11,500
Assistant Cashier
BOARD OF GOVERN
RS OF THE FEDERAL RESERVE SYSTEM
• Sprague
a,
Approval of the payment of salaries during 1958 to three newly
‘,2
1 .?inted officers, Assistant Cashiers Brady, Thayer and Radford, was
'''''Izained in the Board's letter, dated December 3, 1957, to Mr. Erickson.
You will be advised in a separate letter with respect to the
alaries of the President and First Vice President.
Very tray cars.
R Carperfter,
Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
Item No. 26
12/10/57
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 13, 1957
CONFIDENTIAL
(FR)
John E. Bierwirth, Chairman,
Federal Reserve Bank of New York,
New York
45, New York.
1!1'.
tear Mr. Bierwirth:
The Board of Governors approves the payment of salaries to the
toll
°wing officers of the Federal Reserve Bank of New York and its
. 11falo Branch for the period January 1, 1958 through December 31, 1958,
!: the rates indicated, which are the rates fixed by. your Board of Directors
t'` reported in your letter of November 14, 1957.
Name
Title
Robert G. Rouse
Vice President
Harold V. Roelse
Vice President and Economic Adviser
Va
lentine Willis
Vice President
Herbert H. Kimball
Vice President
Todd G.
Vice President and General Counsel
Tiebout
Harold A. Bilby
Vice President
John Exter
Vice President
Robert V. Roosa
Vice President
Marcus A. Harris
Vice President
Reginald B.
Vice President
wiltse
John J.
General Counsel
Assistant
Clarke
Felix T. Davis
Assistant Vice President
ard D. Crosse
Assistant Vice President
Horace L. Sanford
Assistant Vice President
Walter H. Rozell, Jr. Vice President
No an
,
P. Davis
Assistant Vice President
•ralli R.
Assistant Vice President
Fitchen
Donald J. Cameron
General Auditor
Charles A. Coombs
Manager
Peter P.
Manager
Lang
A gut)
A. MacInnes, Jr. Assistant Vice President
John J.
Assistant Vice President
Larkin
Thomas 0. Waage
Secretary
Ir!arding Cowan
Assistant Counsel
qifton R. Gordon
Assistant Counsel
Annual
Salary
$32,500
30,000
30,000
29,500
28,500
28)000
28,000
25,000
23,000
23,000
22,500
21,250
21,000
21,000
20,500
19,000
18,500
18,000
18,000
18,000
18,000
17,500
17,250
17,000
17,000
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Yrs
Bierwirth
-2
Name
Title
Edward G. Guy
8Pencer S. Marsh, Jr.
1-,,wrence E. Quackenbush
..onald C. Niles
4
ederick L. Smedley
E, marpie
Herbert A. Muether
George C.
Smith
George
Garvy
nilliam A. Hein].
trilford Co Gaines
kiln Pe
?red 174 Jensen
Piderit, Jr.
1Cetneth E. Small
4,rthur H.
Noa
rranklin E. Peterson
Walter
Se Rushmore
&thur I.
Bloomfield
"illiam H. Braun,
Jr.
!
Illiam P,
Palmer
11101TA8 Jo
Roche
ka
Chester Walton
,,N°rY O'Keefe, Jr.
'flarles R.
?richer
,,IC)1111 F.
Pierce
4Verett B.
Post
earl. Hs
Madden
2
Assistant Counsel and Acting
Assistant Secretary
Assistant Vice President
Assistant Vice President
Manager
Manager
Manager
Manager
Manager
Senior Economist
Manager
Manager
Manager
Manager
Manager
Manager
Manager
Manager
Senior Economist
Assistant Counsel and Assistant
Secretary
Manager
Foreign Exchange Officer
Manager
Assistant Counsel
Manager
Chief Examiner
Manager
Manager
Annual
Salary
$16,750
16,500
16,500
16,000
16,000
15,750
15,500
15,000
14,750
14,750
14,500
14,500
14,500
14,250
14,000
14,000
14,000
13,500
13,500
13,500
13,250
13,000
12,500
12,500
12,250
12,000
11,500
BUFFALO BRANCH
IlleleY B.
114N-d Me Smith
Wessel
George
jo Doll
Greene
konree Myers
Vice President
Assistant Vice President
Cashier
Assistant Cashier
Assistant Cashier
$23,500
16,250
14,000
12,250
11,000
BOARD OF' GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Mr,
Bierwirth
-3-
In reviewing the officers' salaries proposed for the year 1958,
it has been
noted that two of the larger salary increases apply to senior
fic—
The Board is of
c :5 who will reach retirement age in February 1959.
"
h
°Pinion that, in the future, consideration should be given to the
avoiding disproportionate increases to officers nearing
retil.:Mi
eT3age.
cje
Also, the Board notes that, after giving effect to January 1, 1958
ealarY
at
ncreases, the compa ratio of four of the six ofilcer salary groups
re your Bank
will exceed 100 per cent. Your letter of November 14, 1957
e sting aPproval of the proposed salaries indicates that the Board of
Dir
4 _ !CtOr8
recognizes that salaries in Group Co D, E and F are generally high
ir respective ranges. The Board urges that this widening of the
cont,ionehip between salaries and the midpoint of each group receive your
4hued attention.
gZ
You will be advised in a separate letter with_respect to the
4-lee of the President and First Vice Pi-esidtglto
Very trul
Carpenter,
Secretary.
So R.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. ID. C.
Item No. 27
12/10/57
ADDRESS OFF CIAL COHRESPONOENCE
TO THE HOARD
December 13, 1957
C°11FIDENTIAL
FR)
'.147illiam J. Meinel, Chairman,
iZ1?ral Reserve ilank of
Philadelphia,
--LJ•adelphia 1, Pennsylvania.
Dear Mr.
Meinel:
The Board of Governors approves the payment of salaries to the
peri"ang officers of the Federal Reserve Bank of Philadelphia for the
whicl°,d January 1,
1958 through December 31, 1958, at the rates indicated,
aPe the rates fixed by your Board of Directors as reported in
illiams' letter of October 30, 1957:
Name
1'441 R.
Bopp
Itobert NO
trriest C. Hilkert
illi11.1a/11 G.Hill
Philip M. McCreedy
rSs Vo Poorman
Vergari
G. Wilgus
'
'
ce
414114
orman M. Catanach
G.
!ec'Ne J. Dash
Lavin
8.
Alderfer
:
'
1 LaY J4
Anderson
i:tc,ePh R.
Campbell
-''rdoch
Ko Goodwin
Heth
erington
Ao
Murray
,-;-th Barrie
Bo
Haffner
Ft4711
14,
rd A. Aff
,T.(1 E.
Haas
rY J.
Nelson
Nqa W. Roeder
vi 40
Penner
P. Eastbrn
u
11-411 P. Sudders
Ik
Title
Vice President
Vice President
Vice President
Vice President and SecretaryVice President
Vice President and General Counsel
Cashier and Assistant Secretary
Assistant Vice President
Assistant Vice President
Assistant Vice President
Industrial Economist
Financial Economist
Assistant Vice President
Assistant General Counsel and
Assistant Secretary
Assistant Cashier
Director of Plant
Machine Methods Officer
General Auditor
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Vice President
Chief Examiner
Financial Economist
Assistant Cashier
Annual
Salary
$20)000
19,000
18)000
18,000
18,000
18,000
16,000
13,000
13,000
1/40000
140000
14,000
13,000
13,000
11,000
11,000
12,000
12,000
11,000
10,000
11,000
12,000
12,000
11,000
9,000
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Ur
Maine'
-2
_Approval of the payment of salary during 1958 to a newly appointed
°Jrficers Business Economist Bunting, was contained in the Board's letter
c4t,ed December 3, 1957, to Mr. Williams.
It is noted that Messrs. Ernest C. Hill and William G. McCreedy
I
Ztreach retirement age during 1958 and, accordingly, payment of salary
em is approved only to the respective dates of their retirements.
You will be advised in a separate letter with respect to the
88.1arler, of the
President and First Vice President.
11. yours
:
Very tru
S. R. Carpe9ter,
Secretary.
BOARD OF GOVERNORS
tc,
OF THE
FEDERAL RESERVE SYSTEM
Item No. 28
WASHINGTON 25, 0, C.
4
12/10/57
ADDRESS OFFICIAL. CORRESPONDENCE
,
TO THE
apARp
December 12,
1957
11°44.44.4
eQl'IPIDITIAL (FR)
1,011‘• Arthur
/3. Van Buskirk, Chairman,
`ne,cleral Reserve Bank. of Cleveland,
eVe]and 1,
Ohio.
Dear
Mr. Van Buskirk:
The Board of Governors approves the payment of salaries to the
"."IR officers of the Fedsral heserve rank of Cleveland and its Branches
tor th
ilicii e Period January 1, 1958 through December 3], 39580 at the rates
it meateds
Which are the rates fixed by your Board of Directors as reported
r• khan's letter of November 14, 1957:
Nate
L.
44 R.Allen
Q`s H. ClOttae
Erode
9„11Yde
444 146 Harrell
kartinHostetler
11* E. Morrison
P. C. J. Smith
` P4 Stetzelberger
rhn Ehninzer
Balles
L. Boyd
tI
Title
•
Li
plaharn
• Ab Fink
•
LLLer
‘6 •
Quast
,
e4
Bolt house
E.
1111 Crawford
Benton
cbtlne J.
Erste
Frieek
Royrhn orin
Ji
'4*
Blinkers
Vice President
Vice President and Secretary
Cashier
Vice President
Vice President
vice President
Vice President
Vice President
Lleneral Auditor
Assistant Vice President
Chief Examiner
Assistant Vice President
Assistant Vice President
Assint Vice President
Assistant Chief Examiner
Assistant Cashier
Assistant Can.hier
Assistant Cashier
Assistant Cashier
Assistant Cashiar
Assistant Cashier
Assistant Cashier
Assistant Secretary
Annual
Salary
3180500
18,500
17,000
16,000
18,000
18,500
16,000
19,250
18,000
14,000
12,000
12,500
12,000
14,000
11,000
12,000
10,250
10,500
9,000
10,500
10,000
10,500
10,000
UDARD Of OOVERNORS
r. Van
Buskirk
or
3(;(111
THE FEDERAL RESERVE SYSTEM
2
Annual
Salary
Title
CINCINNATI BRANCH
/4 G.
Johnson
P. J.
Geers
John
G. Bierman% Jr.
Hurst
W. 11,
MacDonald
Vice President
Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
$18,500
1.4,500
10,500
10,500
9,500
PITTSBURGH BRANCH
Kossin
Foster
Nolte
Price
Schmidt
Steinbrink
Vice President
Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
$21,000
114,500
11,000
11,000
12,000
12,500
Approval of the payment of salaries during 1958 to two newly
aPP°int
officers, Senior Economist — Office Manager Kiel and Assistant
Cashi
Dec
-ered
Houpt (Pittsburgh), was contained in the Board's letter, dated
ember 3, 1957, to Mr. Fulton('
R. Price
will .,11 It is noted that Messrs. H. M. Boyd, W. H. Nolte, and
ch retirement age during 1958 and, accordingly, payment of salary to
them
/8 aPProved only to the respective dates of their retirements,
saaa
You will be advised in a separate letter with respect to the
ies of the President and First Vice Presidents
Very tay4oure
//
Ca penter,
Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 29
12/10/57
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO 1HE BOARD
December 13, 1957
C(INFIPENTTAL (FR)
j
If 4 John n.
Woodward, Jr., Chairman,
,;!aderal Reserve Rank of
Richmond,
41ohmond 13, Virginia.
har Mr.
Uoodward:
The Board of Governors approves the payment of salaries to the
4441:ung officers of the Federal Reserve Bank of Richmond and its
for the period January 1, 1958, through December 31,
1958$ at
rfates indicated which are the
rates fixed by your Poard of Directors
-Ported in your
letter of November 14, 1957.
the
„I!).*e
L,
It• L. Armistead
J• D. Cherry
?
1.P. Daane
R
A,
11agner.
11,° 8. Heflin
u• k. kartin
J• 14. Nowlin
Slay
•I. Storrs
L.
StratIr
3*
Brock, Jr.
Ao
Ligon
-1°
4. L. ivlacDonald
Nosker
A A. S
r,**IY tewart, Jr.
'
tr4 Gs
Deitrick
;
1 1 G. D
ickerson, Jr.
L. Ford
• Ltun
pkin
"It
'
LicKinney, Jr.
Z. P
'I H. rer,eant, III
Snea.7.'d
p. •
-• B. Armstrong.
Beavers
Title
Vice President
Vice President, Charlotte Branch
Vice President
Vice President, Baltimore Branch
Vice President and General Counsel
Vice President
Vice President and Cashier
Vice President
Vice President
Vice President and Secretary
General Auditor
Cashier, Charlotte Branch
Assistant Vice President
Assistant Vice President
Cashier, Baltimore Branch
Economic Adviser
Assistant Cashier
Assistant Cashier
Assistant Vice President
Sanior Economist
Assistant Vice President
Assistant General Counsel
Chief Examiner
Assistant Cashier, Baltimore Branch
Assistant Cashier
Annual
Salary
$20,000
18,000
15,000
17,500
20,000
16,500
16,500
17,000
15,500
16,500
14,000
14,000
12,500
14,000
13,500
114,000
10,000
10,500
10,500
10,500
11,000
11,000
11,500
9,500
9,100
BOARD OF GOVERN
S OF THE FEDERAL RESEW,
Woodward, Jr.
Name
R6 Bit
Coleman
Re
Fentress
It• L.
Honeycutt
E. R.
Jones, Jr.
41 Co
lioncky
B.
A. C. Wakeham
Wienert
Annual
Salary
Title
Assistant
Assistant
Assistant
Assistant
Assistant
Assistant
Assistant
360
YSTEM
Cashier
Cashier
Cashier,
Cashier,
Cashier,
Cashier
Cashier,
Charlotte Branch
Baltimore Branch
Charlotte Branch
Baltimore Branch
t 9,600
8,500
10,000
8,700
10,000
10,500
10,500
newly
Approval of the payment of salaries during 1958 to two
contained
nted officers, Assistant Cashiers Friend and Sanders, was
ulle Board's letter, dated December 3, 1957, to you.
In
Brock, Jr. will reach retirement age
duri., 1 It is noted that Mr. R. S.
payment of salary to him is approved only to
the 4,!g 958 and, accordingly,
'esPective date of his retirement.
the salaries
YQU will be advised in a separate letter with respect to
°t the
President and First Vice President.
Very
yous,
• R. C penter,
Seer tary.
,
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. O. C.
Item No. 30
12/10/57
ADDRESS OFFICIAL CORRESPONDENCE
TO THE •OARO
December 13, 1957
-221.1 2111PITIAL (F.R.)
Mr. Walter
M. Mitchell, Chairman,
Pederal Reserve Bank of Atlanta,
Atlanta 3,
Georgia.
bear Mr. Mitchell:
theThe Board of Governors approves the payment of salaries to
bra .4.iowing officers of the Federal Reserve Bank of Atlanta and its
thenohes for the period January 1, 1958 through December 31, 1958, at
Di rates indicated, which are the rates fixed by your Board of
ors as reported in Mr. Bryanfs letter of September 18, 1957:
Name
krold
T. Patterson
411A L.
Liles, Jr.
llt„4:)rtan L. Shaw
44rle L.
Rauber
1,1 A.
t. Lanford
Denmark
t. Moot.,
Jr.
Z` B.
Raisty
"'
S
It,
0. chuessler
Frazer
;* X.
licCorvey
C. Rainey
beWitt
41184'lesAdam
", X. T. Taylor
Stephenson
/14°1411 R.
Rawlings
O. Clark
• H.
Sewell
TC1 (Irte W.
:
Shoffer
1,-\.A0clore Walter
roldell Brown,
Jr.
v• W.
%der
Title
Annual Salary
Vice President and General Counsel $211000
17,500
Vice President and Cashier
17,500
Branch
Orleans
New
President,
Vice
Vice President and
15,000
Director of Research
17,000
Branch
Jacksonville
President,
Vice
16,000
Vice President
16,000
Vice President, Nashville Branch
15,000
Vice President
16,000
Vice President
Vice President, Birmingham Branch 15,000
13,000
Vice President
Assistant Vice President,
13,000
Birmingham Branch
12,000
General Auditor
12,000
Assistant Vice President
Assistant Vice President,
13,000
New Orleans Branch
11,000
Assistant Vice President
Assistant Vice President,
12,000
Jacksonville Branch
Assistant Vice President,
121#000
Nashville Branch
12,000
Chief Examiner
10,000
Assistant Cashier
11,000
Assistant Vice President
11,000
Cashier, Jacksonville Branch
r."‘‘
Mr. Walter M. Mitchell
Name
14. Y.
Chapman
W. Starr
fred TBrock
C. Mason
Ford
b es B.
k
Forbes
R. Martin
4.. N.
Martin
W
illiam A. Waller, Jr.
1,,t. E.
Milling
4 Me
'
Junca
McIlwain
Stuart R.
Magee
- 2-
Title
Cashier, New Orleans Branch
Cashier, Nashville Branch
Assistant Cashier
Assistant Cashier,
Jacksonville Branch
Assistant General Auditor
Assistant Vice President
Assistant Vice President
Cashier, Birmingham Branch
Assistant Vice President
Assistant Cashier, New Orleans
Branch
Assistant Cashier, Birmingham
Branch
Assistant Cashier, Nashville
Branch
Annual Salary.
$11,000
11,000
10,600
• 10,600
9,000
10,600
10,000
10,000
10,600
9,000
8,600
9,000
Approval of the payment of salary during 1958 to a newly
!!Pointed officer, Director of Personnel Vallette„ was contained in the
'ul°44'dte letter dated December 3, 1957, to Mr. Bryan
It is noted that Mr. R. E. Milling will reach retirement age
19<8
4411-ng
, and accordingly, payment of salary to him is approved only
to „
date of his retirement.
You will be advised in a separate letter with respect to the
4
r4e8 of the President and First Vice President.
Bala
Very truly-yOrB
S
Ca penter,
Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 31
12/10/57
WASHINGTON 25. D. C.
ADDRESS OFF ICIAL CORRESPONDENCE
TO THE BOARD
December 13, 1957
Cott51DENTIAL (FR)
l!r. Bert
R. Frail, Chairman,
41aderal Reserve Bank of Chicago,
Chicago 90, Illinois.
Dear Mr.
Prall:
The Board of Governors approves the payment of salaries to the
411g officers of the Federal Reserve Bank of Chictgo and its Detroit
13rala:
rat cu for the period January 1, 1958 through December 31, 1958, at the
which are the rates fixed by your Board of Directors as
reportindicated,
ed in Mr. Allen's letter of October 21, 1957:
Name
tatighrilan„ E.
To
tierbauer, Carl
?riatow,
E. .
C
, P. Darol
D,...4vis, L. A.C.
uawaa, N.
B.
bawaon, L.
Dieroks, Ar.
bona,
tndra P. A.
e, J.
G111
Joagher,
C.
4:4141, P. 111..
H.
Gklatetvson, A• M.
1„Iltiseris V.
tleaths E. A«
A•
,,lielnter, H.
J.
'lodge,
C.
Hpliands R.
c.
krae,
0.
Title
Assistant Vice President
Assistant Cashier
Assistant Cashier
Assistant Vice President
Assistant Cashier
Vice President and Secretary
Assistant Cashier
Vice President
Assistant General Auditor
General Auditor
Assistant Counsel
Assistant Cashier
Vice President
Assistant Cashier
Assistant Vice President and Assistant
Secretary
Assistant Vice President
Vice President, General Counsel and
Assistant Secretary
Assistant Vice President
Assistant Cashier
Annual
Salary
$16,000
9,500
10,500
14,500
10,500
23,000
0,750
23,000
13,500
19,000
10,200
10,500
15,000
8,750
13,500
114,000
19,000
13,500
9,500
SOAR° cir L.30V RNORS OF THE rEDERAL RESERVE SYSTEM
Name
Annual
Salary
Title
Jones, L. H o
Laiblir, C. T6
Mi
tchell, G. W,
Neivinan, H. J.
Oblons .L.
AQS
L.
Scanlon,
04, J.
S
chultz, H. S.
Smyth, B. L e
Sorg, R. E
.
Srp, j.
Tucker, G. T0
Turner, W.
W.
Van
Zante, C.
p.
*aeon, H.
Fe
OMM.11•N•••..••••
Cashier
Vice President
Vice President
Vice President
Vice President
Assistant Chief Examiner
Chief Examiner
Assistant Cashier
Assistant Vice President
Assistant Cashier
Assistant Cashier
Assistant Cashier
Vice President
Assistant Vice President
Assistant Vice President
418,500
16,500
21,500
16,000
23,000
12,500
15,000
10,000
15,000
11,000
12,000
12,500
22,000
14,500
14,500
DETROIT BRANCH
8loomfield, Ro W.
Carey, Po
F,
kehls
H. Lo
1441Phere, G. W.
%valley.,
R. A.
Wiegandt, A. J.
Assistant Vice President
Assistant Cashier
Cashier
Assistant General Counsel
Vice President
Assistant Cashier
$14,500
9,600
13,000
12,750
18,000
12,500
Approval of the pcyment of salary during 1958 to a newly appointed
°IN%te
beee„ri Assistant Cashier Gohr, was contained in the Board's letter, dated
'
°ar 3, 1957, to Mr. Allen.
Mr. Allen's letter mentioned the anticipated retirements of Messrs.
7\411e
and
aged
Carroll, and it is noted that Mr. Bristow will reach retirement
otri,uring 1958, also. Accordingly, the payment of salary to these three
-ers ic3 approved only to the respective dates of their retirements.
You will be advised in a separate letter with respect to the
'Le8 of the President and First Vice Prt,sident.
Very trtp.y"
rs,
S. R. Ca senter,
Secretary.
BOARD OF GOVERNORS
1
W0
0
;4
OF THE
.*
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
Item No. 32
12/10/57
;1 4
ADDRESS OFFICIAL CORRESPONDENCE
**It s
4oktort-
TO THE BOARD
December 13, 1957
C°1411:DENTIAL FR)
fEd Pierre B. McBride, Chairman,
t eral Reserve
Bank of St. Louis,
6 41118 2, Missouri,
Dear Mr.
McBride:
The Board of Governors approves the payment of salaries to the
1411nm:441g Officers of the Federal Reserve Bank of St. Louis and its
the ;"e3p for the period January 1, 1958 through December 31, 1958 at
tilce*aates indicated in Mr. Johns' letter of November 13, 1957, if so
the Board of Directors:
Name
Howard H.
hJe'sePh C. Weigel
:tile U. Wotawa
Levis
7111aiam J.
k/rgG t. Abbott
Kroner
L'Ieci
Burton.
9
Donald L.
BenrY
441)ri R.
Francis
114,
Billen
'14,11118 L.
Johns
',eken
Koptis
'44114 L.
°10111e O.Bennett
,r l
WYrick
ipHirshman
Gilmore
P!'14 J.
Hofer
wAla
Salzman
7434
'
44es M. Dunne
Geiger
P
Title
Vice President and Secretary
Vice President
Vice President
Vice 'resident
Vice President
Vice President and Manager,
Little Rock Branch
Vice President and Manager,
Louisville Branch
Vice President and Manager,
Memphis Branch
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
Chief Examiner
General Auditor
Assistant Vice President
Assistant Vice President
Assistant Vice President
Counsel and Assistant Secretary
Assistant Vice President
Annual
Salary
$170500
18,000
17,500
17,500
17,500
17,000
15,000
18,000
13,500
13,000
13,500
12,500
14,000
13,000
11,200
10,500
11,500
11,000
10,600
612
EMARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
rcBride
Name
Wilbur H. Isbell
Sherlay C. Davis
John W.
t. Fr Menges
ancis DeVos
I E.
Walker
Clifford Wood
J. Bryan
Clarence J. Wbertz
L. K.
Arthur
,
14 C.
Anderson
B•
Monaghan
— 2-.
Annual
Salary
Title
$11,000
Assistant Chief Examiner
10,000
Branch
Rock
Little
Cashier,
10,000
Branch
Louisville
Cashier,
10,600
Branch
Cashier, Memphis
9,000
President
Assistant Vice
8,500
Branch
Rock
Little
Assistant Cashier,
9,000
Assistant Cashier, Little Rock Branch
8,500
Branch
Louisville
Cashier,
Assistant
8,500
Branch
Louisville
Cashier,
Assistant
9,000
Assistant Cashiers Memphis Branch
500
80
Branch
Memphis
Assistant Cashier,
age
dluln , It is noted that Mr. L. K. Arthur will reach retirement
to
only
approved
is
him
tha ,g 1958. and,accordingly, payment of salary to
of his retirement.
You will be advised in a separate letter with respect to the
84411
es of the President and First Vice President.
S. R. arpenter,
Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 33
12/10/57
WASHINGTON 25. O. C.
4
AQDR
a
$.6 OFFICIAL coRRESPONOIENCE
TO THE BOARD
it
,tr
.144a**
December 13, 1957
9.21F.12112244_11111
!,4ro Leslie N.
Perrin, Chairman,
ederal Reserve Bank of Hinneapolis,
14inneapoli3 2,
Minnesota.
Ilear Mrs
Perrin:
The Board of Governors approves the payment of salaries to the
Br, n•kng Officers of thl Federal Reserve Bank of Minneap olis and its
ranch for the period January 1, 1958 through December 31, 1958, at the
rf'es indicated, which are the rates fixed by your Board of Directors as
=Ported in Mr. Deming's latter of October 30, 1957i
Annual
Name
G.
McConnell
Siglxrd Ueland
C•
Title
Salary.
H 10
Groth
Strothman$
Jr.
• Le
Persons
11.
ti.
84
As W. Holmgren
A4 Jo Johnson
McNulty
hoger K.
Grobel
144 E4
Lysen
Ao Van
Nice
Wo
Chnstad
'" Po
titterer
Co
Ries
P% Jo
Cramer
,,j
„°hn Jo
C, Gillette
Branner
Oo Sather
Derf<quist
Vice President
Vice President end Counsel
Vice President and Cashier
Vice President
Director of Research
Vice President
Vice President
General Auditor
Chief Examiner
Operating Rosearch Officer
Assistant Vice President
Assistant Vice President
Business Economist
Assistant Vice President
Assistant Vice President
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
20,500
17,000
16,000
16,500
15,000
13,000
13,000
12,500
12,500
12,500
12,000
11,500
n.,500
11,000
1O,00
10,750
9,750
9,500
9,250
HELENA BRANCH
A_
Berg
441 L.
Heath
Vice President
Assistant Vico President
Ascistant Cashier
$13,500
10,500
8,000
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
• Per in.
- 2-
It is noted from Mr. Deming's letter that Messrs. Ueland and
Berg
und will retire during 3958 and, accordinglY. Payment of salary to
the
is aPproved only to the respective dates of their retirements.
You will be advised in a separate letter with respect to the
ealallea of the President and First Vice President.
Very truly your
er,
Secrets
3614
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
Item No* 34
12/10/57
ADDRESS DFFICIAL CORRESPONDENCE
ICI THE BOARD
December 10, 1957
Z121.112ZTLIg4.22:11
141, 111b-14aYMOnd K. Hall, Chairman,
eral Reserve Bank of Kansas City,
Xarleas City 6,
Missouri.
'
pear Mr.
Hall:
The Board of Governors approves the payment of salaries to the
toil
uing officers of the Federal Reserve Bank of Kansas City and its
Brelcw
December 31, 1958, at
the cues, for the period January 1, 1958, through
as rt'ates indicted, which are the rates fixed by the Board of Directors
ePorted in your letter of November 13, 1957:
Name
b. W.
WoolleY
Clarence W.
John T.
Tow
4. S.
Boysen
C. A. Handford
J
Cravens
oseph
P. H. R. Euans
Larson
U.
J. T. Sherman
C. L. White
Lik P, Bollinger
Willard
‘1% C.
Edwards
Gect-4oCraig
C.
ohn . Rankin
,ltlIV
bert Snider
ttoE.
Thomas
Title
Vice President
Vice President
Vice President and Cashier
Vice President
Assistant lace President
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
General Auditor
Chief Examiner
Director of Personnel
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
Annual
Salary
t22, 00
19,000
16,000
13,000
12,000
11,600
12,200
12„TO
11,000
14,000
13,500
11,000
9,600
11,60C
9,500
9,500
DENVER PRANCH
Ceoil
4% L. Puckett
Stempel
litibert G.
J.
Duck
Zahourek
Vice President
Cashier
Assistant Cashier
Assistant Cashier
17,000
12,600
10,700
9,500
BOARD
or
3616
GOVERNORS OF THE FEDERAL RESERVE SYSTEM
• Pall
Annual
Salary
Title
OKLAHOMA CITY HUNCH
R.
L. Mathes
P. %
Alexander
P
Fritz
E
Parley
$17,500
12,100
10,600
9,500
Vice President
Cashier
Assistant Cashier
Assistant Cashier
OrAHA BRANCH
$17,000
11,700
10,500
9,500
Vice President
Cashier
Assistant Cashier
Assistant Cashier
separate letter with respect to the
Yoll
'Iaries of will be advised in a Vice Ptesident•
the Presjdent and First
J"?
Very trAr eurS,
,'
0 7
:001e: 010.
S
rpenter0.7
retary.
BOARD OF GOVERNORS
,401,140
OF THE
FEDERAL RESERVE SYSTEM
Item No, 35
12/10/57
WASHINGTON 25, D. C.
ADOPEBB OrriC8AL CORRESPONDENCE
TO THE BOARD
December 13
1957
C°11P MEM
'
TAL (FR)
40bert Jo
Smith, Chairman,
'ederal Reserve
Bank of Dallas,
Dallas 13, Texas,
tea,
Sniith:
The Board of Governors approves the payment of silaries to the
for t'Ll'Ig officers of the Federal Reserve Bank of Dallas and its Branches
iricacuu Period January 10 1958 through December 31, 1958, at the rates
,c1, which Pre the rates fixed by your Board of Directors as reported
krate
IrOTIS I letter of October 100 1957;
Name
B.
Austin
Rarry Pondrom
A.
G. R. isil Shuford
141.H. urff
140
rganHolloway
H. Rice
trhornas
,
W.
thotas
Plant
A.
Charls E. Hardin
Carl H. Walker
Moore
4ernlan W.
Z.
Kilman
Berg
James
?lij AT Pvker
14.0s8 L. Coldwell
"4 14 PrHulsey) Jr*
itchett
.1„,41e8 L.
orge F.Cauthen
Rut'
Lb
(14
Jj
Title
Annual
Salary
$20,500
Vice President
19,500
Vice President
18,000
Vice President and General Counsel
15,700
General Auditor
15,200
Vice President and Cashier
15/200
Vice President and Secretary
14,000
Vice President
12,100
Vice President
13,000
Vice President and Economic Adviser
12,i400
Assistant Vice President
11,000
Assistant Cavhier
10,500
Assistant Cashisr
11,700
Personnel
Director of
12,500
Research
Director of
12,000
Chief Exominer
11,200
Assistant Cashier
10,300
Assistant Cashier
etary
Assistant
10,700
Sec
Assistant Counsel and
EL PASO BRANCH
liczkrd
PredricCarrithers
,C
Reed
Vice President
Cashi er
Assistant Cashier
$13,000
9,800
8,000
BOA
Or
VERNORS OF THE FEDERAL RESERVE SYSTEM
— 2 —
Annual
SaIar
Title
HOUSTON BRANCH
Je L.
Cook
86 J. Troy
Thomas R.
Sullivan
C.
Hartung
$160500
9,800
9,600
Vice President
Cashier
Assistant Cashier
Assistant Cashier
8,500
SAN ANTCNIO 13RANCH
W. E.
eagle
A. Es
llundt
Alvin E.
FrederickRuss°11
J. Schmid
$15,500
10,600
90800
8,000
Vice President
Cashier
Assimtant Cashier
Assistant Cashier
It is noted that Messrs. E. B. Austin andlto H. Holloway will
reach
them iretirement
salary to
age during 1958 and, accordingly, payme nt of
retirements.
approved only to the respective dates of their
4104
You will be advised in a separate letter with espect to the
of the President and First Vice President.
Very tru1i7 o
se g. ar
Secret
nter
70
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
Item No. 36
12/10/57
ADDRESS OFFICIAL COuRES
TO THE HOARD
a
OE CE
December 13, 1957
CONFIDENPPIAL (FR)
,;r
11 1 A. H.
Bremner Chairman,
rederal Reserve
Bank of San Francisco,
Sen Fr
ancisco 20, California.
Dear Mr,
Brawner:
ton.
The Board of Governors approves the payment of salaries to the
trcZg officers of the Federal Reserve Bank of San Francisco and its
rat.
.:-o3 for the period January 1, 1958 through December 31, 1958, at the
indicated,
which are the rates fixed by your Board of Directors as
reZtod Ti Mr. Mangelst letter of October 11, 1957:
Pame
Title
E. R.
H. F. Millard
R. H. Slade
Morrill
jS A b 01
Kane
PS Wheeler
2: E.
It. 8. Hemmings
Einzig
R.
Armstrong
E. H.
Galvin
J•
114 Harbonchielli
Barrett
P.
'Ca,,
H.
It. C. Davenport
Milliken
We Lynn
4% S.
44 H. Schwartz
Price
Vice President
Vice President
Vice President
Vice President and General Counsel
Vice President
Cashier
Assistant Vice President
General Auditor
Chief Examiner
Assistant Vice President
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
Senior Economist
Senior Economist
Assistant Cashier
Annual
Salary
$18,000
19,000
14,000
17,000
17,000
13,000
12,000
13,500
12,500
12,000
10,000
10,000
10,000
11,000
12,000
12,000
9,000
LOS ANGELES BRANCH
W, p
00
4
H:,Y°1berg
j vietkins
0. D:.uavies
„ Parker
4
. 14
Vs D s --(:)bir190n
Vlgus
Vice President and Manager
Assistant Manager
Assistant Manager
Assistant Manager
Assistant Manager
Assistant Manager
$20,000
15,500
8,500
10,500
10,500
9,000
OCIARO of UCVLRNDRS
or
THE FEDERAL RESERVE SYSTEM
Brawner
Nalne
Annual
SalarY
Title
PORTLAND BRANCH
(!* As
Randall
f‘
ii. 1,3s
lierritt
••
C. H Bro
• idercer
Vice President and Manager
Assistant Manager
Assistant Manager
Assistant Manager
$17,000
12,000
9,000
9,000
SALT LAKE CITY BRANCH
E.
A.L. Barglebaugh
As G. Price
T. M. tiolman
Simmons
Vice President and Manager
Assistant Manager
Assistant Manager
Assistant Manager
Slit,000
12,000
8,500
10,000
SEATTLE BRANCH
Jo
id*
4. E. Leisner
Yi. R. Everson
Sandstrom
Simms
Vice President and Manager
Assistant Manager
Assistant Manager
Assistant Manager
$18,500
13,000
100500
10,000
newly
apDoint
Approval of the payment of salaries during 1958 to five
Administrative
and
Maurer,
heist
officers, Assistant Cashiers Martens and
Carter and
Grimm -" Vhitworth at the Head Office, and Assistant Managers
was
contained
respectively,
in th at the Los Angeles and Portland branches,
Mangelso
e Board's letter, dated November 18, 1957, to Mr.
It is noted that Messrs. H. F. Slade and C. H. Mercer will reach
salary to them is
:
.a
, re during 1958 and, accordingly, payment of sala
411PProl)erton to tbe respective dates of their retirements.
rpttrem
respect o the
will be advised in a separate letter with
.or the
President and First Vice Pres ents,
e
8 lari.
Very trVay
Ars,
nter,
Secre
@FedFRASER