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Minutes for To: Members of the Board From: Office of the Secretary December 13) 1961 Attached is a copy of the minutes of the Board of Governors of the Federal Reserve System on the above date. It is not proposed to include a statement With respect to any of the entries in this set of minutes in the record of policy actions required to be maintained pursuant to section 10 of the Federal Reserve Act. Should you have any question with regard to the minutes, it will be appreciated if you will advise the Secretary's Office. Otherwise) please initial below. If you were present at the meeting, your initials will indicate approval of the minutes. If You were not present, your initials will indicate only that you have seen the minutes. Chin. Martin Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. King Gov. Mitchell 4236 Minutes of the Board of Governors of the Federal Reserve System on Wednesday, December 13) 1961. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Mr. The Board met in the Board Room at 11:00 a.m. Martin, Chairman Balderston Vice Chairman Mills Robertson Shepardson King Mitchell Sherman, Secretary Kenyon, Assistant Secretary Molony, Assistant to the Board Fauver, Assistant to the Board Hackley, General Counsel Farrell, Director, Division of Bank Operations Solomon, Director, Division of Examinations Connell, Controller Harris, Coordinator of Defense Planning Hooff, Assistant General Counsel Koch, Adviser, Division of Research and Statistics Mr. Goodman, Assistant Director, Division of Examinations Mr. Benner, Assistant Director, Division of Examinations Mr. Leavitt, Assistant Director, Division of Examinations Mr. Spencer, General Assistant, Office of the Secretary Mr. Young, Senior Attorney Mr. Kakalec, Assistant to the Controller Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Items circulated or distributed to the Board. itey. The following which had been circulated or distributed to the members of the 4 and copies of which are attached to these minutes under the " l'espective item numbers indicated, were approved unanimously: Item No. tett ael er to the Federal Reserve Bank of PhilatrPia regarding the operation of a common fund by Princeton Bank and Trust Company, 14ceton, New Jersey. 1 423 -2- 12/13/61 Item No. Letter to Philadelphia Investment Corporation, Illiladelphia, Pennsylvania, approving an increase in its paid-in capital. 2 Letter to the Federal Reserve Bank of St. Louis 4"ing the withdrawal of the Bank's previous , 1*.°P0551 for the pre-emergency storage of flIrrency and interposing no objection to a 4:eV1.sed substitute plan. 3 Letter to State Bank of Arthur, Arthur, .11.110is, granting its request for permission '4=1 exercise fiduciary powers. Is. ter to Citizens State Bank, Puyallup, 1ngton, approving the establishment of ;°ranch in the Sumner Shopping Center, rierce County. 5 P 6 ti tetter to all Federal Reserve Banks regarding lscontinuation of publication of the Board's 111:1111s1 list of national banks authorized to ! 'Icercise fiduciary powers. Messrs. Harris, Hooff, Goodman, Benner, and Leavitt withdrew tl'Qn the meeting at this point. Request of First National City Trust Company. There had been cll'eillated a memorandum dated November 29, 1961, prepared by the Division °t 13ank Operations, regarding a request by The First National City Trust v`L'Ily, New York, New York, for permission to maintain the same reserves 4€41.11at deposits as are required to be maintained by banks located outside of central reserve and reserve cities. Attached to the memo- Was a draft letter in which such permission was granted. 423S 12/13/61 -3- Governor Mitchell raised certain questions regarding the rationale underlying the favorable recommendation, and in light of those questions it was agreed that the matter would be held over for tUrther consideration at another meeting of the Board. Presidential reorganization plan. a There had been distributed memorandum dated December 8, 1961, from the Legal Division with respect to a letter from the Bureau of the Budget that invited the Board to rieCommend any Presidential reorganization plan which the Board might e°11sider desirable, in connection with the Bureau's review of proposals to improve the organization and management of agencies and functions that might usefully be advanced during the next session of Congress Ilader the Reorganization Act of 1949. In commenting on the subject, Mr. Hackley said that even though the Reorganization Act defined an agency of the Government as an establishment "in the executive branch," the legislative history of the Act made it clear that it would be difficult to take the position that the law was not applicable to the Board. Nevertheless, it was the teeling within the Board's staff that any recommendations for changes 14 the Board and its functions, no matter how desirable, would constitute l`sreeedent and suggest that the Board derived its authority not entirely trnft -"Congress but partly from the executive branch of the Government. ke0 rdingly, the draft reply to the Budget Bureau had been prepared in term8 that to the extent any changes in the Board's organization might 12/13/61 .14.... be desirable, they should be accomplished by specific legislation and not be included in a plan under the Reorganization Act. Following Mr. Hackley's comments, Governor Balderston suggested 4 rewording of the last paragraph of the proposed reply. Mr. Molony 4180 had prepared an alternative reply, copies of which he distributed to the members of the Board. During the ensuing discussion, Governor Mitchell said that he ecacurred generally in the view that any substantial changes in the Qqanization and functions of the Board should be accomplished through legislation. However, there was another area of concern to him with l'espect to the Board's operations, namely, the possibility of delegating 44th0rity for certain matters to the staff or to the Reserve Banks. He Illdicated that he would like to have a statement prepared concerning tUrietions that might be delegated. The result of such delegations of aUth°ritY might be to help clear the Board's docket and provide for more effective administration of Federal Reserve responsibilities. Mr. Hackley replied that while the staff had considered that 1)°411)11itY, it had felt that inclusion of such matters in a Presidential l'e°11M1ization plan might be subject to the disadvantages that he had For this reason, the staff had not undertaken at this time to g° into organizational changes that might be desirable. However, it ttliglit be worth while to explore the matter further. -5- 12/13/61 Governor Robertson commented that the functions requiring the Most time were those in which the Board was called upon to act in a 3.81-Judicial capacity. (111' It would be undesirable to delegate such Matters in the absence of Congressional action. During further discussion, Mr. Hackley pointed out that there ere certain responsibilities the Board must exercise pursuant to statutory requirements. 'were involved. Ilet In some other matters, no statutory requirements However, as he had previously indicated, the staff had gone into the subject from that angle. Following additional comments with respect to the most appropriate te'rm of the reply to be sent to the Budget Bureau, it was understood that tIle letter would be redrafted in light of this discussion and brought b4ek to the Board for further consideration. Messrs. Hackley, Farrell, Solomon, Young, and Spencer withdrew N14 the meeting at this point. Board's budget for 1962. There had been distributed to the 441bers of the Board copies of the proposed budget of the Board for 1962) t°gether with a summary prepared by the Office of the Controller under clEtte of November 22, 1961. The total proposed budget was $6,95606370 or 317,938 more than estimated expenses for 1961. Of the total, $5,225,045 vets for Personal services, while $1,731,592 was for nonpersonal services. In commenting on the budget, Mr. Connell noted that the Board already discussed and approved a number of the larger items therein ling within the category of nonpersonal services. 3 ' 4P11,0' 12/13/61 -6- During the discussion that ensued, Governor Mitchell raised rentals certain questions relating to the amount provided for computer 141962, particularly the increase in expense attributable to the rental °f an IBM 1410 computer in replacement of the currently rented IBM 650 beginning about June 1, 1962. Governor Mitchell referred to a memonow awaiting consideration by the Board concerning the proposed Ilental of the IBM 1410 and stated his understanding from a reading of the memorandum that the total rental cost, including extra-shift rental, 1101.11.d be lower in 1962 if the IBM 1410 were installed. The budget ately 81114m927 indicated that the total rental cost would be approxim 35,000 greater. After several comments had been made in explanation, it was 1411derstood that the point mentioned by Governor Mitchell would be checked into in order to obtain full clarification. Research With reference to the proposed budget of the Division of 444 Statistics, Governor Mitchell commented that he was somewhat disturbed t° Ilate that the budget for the Banking Section totaled only about amounts $116000, which seemed to him rather low in relation to the blIclgeted for other phases of the Division's work, particularly in view or the importance that he attached to the program in the banking area. the 111 41aking this comment, he specified that he was not objecting to 414c/114ts provided for other types of research activity. He also indicated t114t he had not yet had an opportunity for discussion of this point with the Director of the Division. 12/13/61 -7- Other comments by Governor Mitchell called attention to a proposal, at an anticipated cost of approximately $6701 to re-design the cover of the Board's Annual Report for 1961 and make use of color in the report to a limited extent. Governor Shepardson indicated that this matter had been covered 14 a staff memorandum submitted to him under date of December 12, 1961. After explaining the nature of the proposal, he said that it had raised 8°41s question in his mind and that he had intended to bring the item to the attention of the Board. He noted that the proposal did not contemplate 44Y significant changes in the content of the Annual Report. After a discussion during which varying views were expressed, it 413Psared that there was no strong feeling among the members of the Board 14 or of the proposal. Accordingly, agreement was expressed with a --iatestion that the proposal not be adopted. Chairman Martin then turned to the members of the Board for their views regarding the budget as a whole. Governor Mills said that he believed the budget was clearly 14'seented and that he would accept it as submitted, with the knowledge t464 although the budget was a guideline, it could be reopened during the for revision should justifiable circumstances arise. Governor Robertson expressed agreement. riot He stated that he did hold the view that the budget was an absolute ceiling on expenditures; 4:ttier, he understood that specific items could be considered during the -8- 12/13/61 Course of the year. For example, if there should be a specific proposal that would call for an addition to the research budget, he would have 110 objection to its consideration notwithstanding the figures used in the budget. Governor Shepardson noted that, as previously mentioned, certain °lithe larger items in the budget for nonpersonal services had already 'been considered specifically by the Board and had received authorization. He also commented on the computer proposal mentioned by Governor Mitchell, as outlined in the memorandum awaiting consideration by the Board. Governor King stated that he would approve the proposed budget, 48( lid Governor Balderston, the latter adding that he would agree with the Philosophy expressed by Governor Mills. Accordingly, the proposed budget for 1962 was approved unanimously. The Provisions thereof, in summary, were as follows: Services 8alaries: °frices of Members of the Board °trice of the Secretary Division ce of the Controller 17) ‘lvision of Research and Statistics ision of International Finance III :vision of Examinations *vision of Bank Operations ' " TIlvision of Personnel Administration of Administrative Services ni,kexcluding cafeteria salaries) ' rice of Defense Planning $ 362,053 2700 553 186,775 101,896 1,306,507 359,777 705,906 355,274 160,47o 665,242 39,897 tiletirement Contributions 1111)10Yee Insurance $4,5141 350 54,520 612,203 43,972 T°t41 Personal Services $5,225,045 L., 4 ees Salaries 12/13/61 -9- Nonpersonal Services Traveling Expenses Postage and Expressage Telephone and Telegraph Printing and Binding Stationery and Supplies Plirniture and Equipment Rentals Books and Subscriptions lieat, Light, and Power RePairs and Alterations (Building and Grounds) RePairs and Maintenance (Furniture and Equipment) in surance Contractual Professional Services Al1 Other $ 367,383 83,527 101,718 284,541 58,022 31,492 207,725 20,725 54,120 125,561 13,335 10,070 272,225 1010148 T(4a1 Nonpersonal Services $1,731,592 Grand Total $6,956,637 All of the members of the staff except Messrs. Sherman and Fauver n withdrew from the meeting. Director appointments. It had been ascertained that J. M. Cheatham, Class C director of the Federal Reserve Bank of Atlanta, would not be able t° accePt designation as Chairman of the Bank for the year 1962. In the elttUmstances, it was agreed to request the Chairman of the Atlanta Bank to ascertain and advise whether Jackson Williams Tarver, President of ktlatita Newspapers, Inc., Atlanta, Georgia, would accept appointment, if terldel'ed, as a Class C director of the Bank for the three-year term begi .ng January 1, 1962, with the understanding that if Mr. Tarver would 13.celYt, the appointment would be made and he would also be designated Chai rloan and Federal Reserve Agent for the year 1962, with compensation q at an amount equal to the fees that would be payable to any other 12/13/61 -10- director of the Bank for equivalent time and attendance to official business. Secretary's Note: It having been ascertained that Mr. Tarver would accept the appointment as Class C director if tendered, a telegram advising him of such appointment and of his designation as Chairman and Federal Reserve Agent for 1962 was sent on December 14, 1961. It was agreed to request the Chairman of the Federal Reserve 44k of Atlanta to ascertain and advise whether Henry King Stanford, President of Birmingham Southern College, Birmingham, Alabama, would 4ccePt appointment, if tendered, as a director of the Birmingham Branch tor the three-year term beginning January 1, 1962, with the understanding that if Dr. Stanford would accept, the appointment would be made. Secretary's Note: It having been ascertained that Dr. Stanford would accept the appointment if tendered, a telegram advising him of the appointment was sent on December 180 1961. David C. Bevan, Vice President, Finance, The Pennsylvania 116111road Company, Philadelphia, Pennsylvania, was appointed Deputy Ch4irman of the Federal Reserve Bank of Philadelphia for the year 1962. Messrs. Sherman and Fauver then withdrew and the Board went 14t0 executive session. Salaries of Board officers. by The Secretary was informed later Governor Shepardson that during the executive session the Board had 13 roved increases in the annual salaries of members of its official Staff as follows, effective January 1, 1962: 12/13/61 -11Annual Salary To From Office of the Secretary Merritt Sherman, Secretary Elizabeth L. Carmichael, Assistant Secretary $18,500 10,750 $19,000 11,500 17,750 16,000 13,750 18,500 17,000 14,250 16,950 16,000 17,500 17,000 17,000 17,000 17,000 15,500 15,030 18,500 18,500 17,750 16,500 15,750 16,950 16,400 15,750 14,500 14,500 14,705 17,500 16,750 16,250 15,500 15,000 15,500 18,000 16,400 15,600 13,500 18,500 17,000 16,000 14,500 15,300 15,750 Piyisn 1)av1d B. Hexter, Assistant General Counsel irwh i°111as J. O'Connell, Assistant General Counsel ' 80h L. Hooff, Assistant General Counsel kvision of Research and Statistics 114 1 wis N. Dembitz Associate Adviser H. Brill,l Associate Adviser 1)1vision of International Finance ur B. Hersey, Adviser Herbert Furth, Adviser ?bert L. Sammons, Adviser Rnl lz11e1 I. Katz, Associate Adviser e' --Ph C. Wood, Associate Adviser 1/ Examinations GRelnrY Benner, Assistant Director M. Goodman, Assistant Director tfes C. Smith, Assistant Director 13,1. M. Schaeffer, Chief Federal Reserve Examiner A,..44'o1 C. Leavitt, Assistant Director -14 N. Thompson, Assistant Director 1/ 13111-sion of Bank Operations John : Ge /1. Farrell, Director M. Conkling, Assistant Director ,1' Daniels, Assistant Director -4 W. Kiley, Assistant Director Pjvis. Personnel Administration P. s precher, Jr., Assistant Director PPointed to position indicated effective January 1, 1962. .J1 4" 12/13/61 -12Annual Salary To From PlYision of Administrative Services °sePh E. Kelleher, Director arry E. Kern, Assistant Director $161400 $16,750 10,750 11,500 In addition, the Board changed the title of Kenneth B. Williams fr°,1/1 Associate Adviser to Adviser, Division of Research and Statistics, effective January 1, 1962, with no change in annual salary at the rate 01' $18,000. The Board approved an increase of $18,265 in its budget for 1962 in view of the foregoing salary adjustments, thus increasing the budget from $6,956,637 to $6,974,902. Appointment to Board's staff. The Secretary was informed later that during the executive session the Board approved the appointment of Robert L. Cardon as Legislative Counsel in the Board Members' Offices, with annual salary at the rate of $17,600, effective the date of entrance 1113°n duty. The meeting then adjourned. Secretary's Note: Pursuant to the action of the Board on November 29, 1961, a telegram was sent today to William King Self advising him of his appointment, effective December 15, 1961, as a director of the Memphis Branch of the Federal Reserve Bank of St. Louis for the unexpired portion of the term ending December 31, 1962. BOARD OF GOVERNORS OF THE Item No. 1 12/13/61 FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 13, 1961 J°seph R. Campbell, Vice President, iCeral Reserve Bank of Philadelphia, '441sdelphia 1, Pennsylvania. 1111411 Mr• Campbell: This is in reply to your letter dated September 8, 1961, telati e to Princeton Bank and Trust Company, Princeton, New Jersey, 414 bkiki„ttv8 operation of a common trust fund (Fund) established and 81Z.!ined under the provisions of section 206.17, Regulation F. to,411.celly, the operating practice in question involves payment 414 n 'is Participating in the Fund of income collected and accrued bilaeterly distribution periods, which payment exceeds the coinCash balances of the principal and income accounts of the Fund. Iloeeetice has been questioned by your examiners as an apparent reginH°u of applicable provisions of the Board's common trust fund ikii4 76ions--section 206.17(a)(4), Regulation F--and of a related he rPretation of the Board published in the July 1949 Federal serve otth Bulletin. The member bank has requested the current views oftas Board on the question and has submitted various facts and elite for the Board's consideration. Relevant portions of the Board's regulation provide that "A °silk administering a Common Trust Fund shall not have an,' interest in the assets held in such Common Trust Fund, her than in its capacity as fiduciary...." -Paragraph 14.‘iii), section 206.17(a), Regulation F; and HA national bank acting as fiduciary shall not make any dvance to any trust from the funds belonging to any other rust, except when the making of such advances to a designated trust is specifically authorized by the trust instru'tett covering the trust from which such advances are made." *-Section 206.11(c), Regulation F (applicable to the administration of all common trust funds maintained under the lrovisions of section 206.17, Regulation F by virtue of the et sentence of subsection (c), section 206.17 of the ' egnlation). il Z I 11•110/0 BOARD OF GOVERNORS OF THE FEDERAL RESERVE. SYSTEM Mr. Joseph R. Campbell 2 In its 1949 ruling, the Board considered a question virtually identi-cal to that now raised by Princeton Bank and Trust Company and e:,Pressed the opinion that the use of uninvested cash in a common trust 4a:V to distribute accrued interest and dividends receivable on invest; tio s cf the fund prior to receipt is not inconsistent with....Regulat,1111 and "that it would not object if uninvested cash in a common 134as„,t; fund were so used in reasonable amounts." In this ruling, the the u expressed the view that the use of funds advanced by a bank for be). PurPose of distribution of such accruals or the use of cash funds ill °1:1ging to other trust department accounts for such purpose would, tileetither case, cause the bank to acquire an interest in the assets of of the kind prohibited by the above quoted provisions of Bection 206.17(a). Under its present policy and practice applicable to investthe funds of its common trust fund, the member bank does not n 'ain sufficient uninvested principal cash in the Fund to offset 111arter, the ,,, 4 payments of income accruals. The main argument advanced by ite;?mber bank in support of such practice stems from concern with the .'14-duciary duty to keep trust property productive so as to maximize Come yield to beneficiaries of trusts participating in the Fund. 1e klati additional income--admittedly inconsequential per unit of the ciPation—would be derived from full investment employment of tl neiPal of the Fund, the consequence of such policy, when coupled i, ter '"e Payment of income on an accrued basis, is a net overdraft in the , to t tsh accounts of the Fund; i.e., the unauthorized advance of cash 8 Fund by other trust department accounts. Hence, violation of ' the of section 206.11(c), Regulation F, is involved in additi 1 0 the prohibited acquisition of an interest in the Fund as dis. 'ed in the foregoing paragraph. rIlent of It may also be observed that, in view of the source of funds ) under the current practice of the member bank, enables both b 15 vestment of principal and distribution of income on an accrued 'whatever income advantage may accrue would properly enure, not to th 8 beneficiaries of the trusts participating in the common trust Vilich but to the beneficiaries of the trusts the cash balances of Nith.,,e°mPrise the bank's general deposit of trust funds. It should t4/itiirn-r be borne in mind that, consistent with the Board's interpre4-ktrit- ruling, payments of income accruals to common trust fund particheld are made possible, in effect, by an advance from uninvested cash tIlrec;11,_the Fund which action involves a "use" of such cash for the " cenefit of beneficiaries of trusts participating in the Fund. Following consideration of all aspects of the subject Y, the circumstances of which do not materially differ from HOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM it (1.e4t) 141'• Joseph R. Campbell • 124)se on which its earlier opinion was based, and as a result of ! consideration of the principles involved in presently applicable : 4 ralations and related rulings, there appears to the Board no i : on which to alter the views heretofore expressed on this Xstion as published in the July 1949 Federal Reserve Bulletin PN 797-98. Will you please so advise Princeton Bank and Trust n vOzpaily. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE Item No. 2 12/13/61 FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 13, 1961 !!!_ Frederick C. Rieck, Vice President, ade1phia International Investment Corporation, nlja adelphia, Pennsylvania. 1)ear*. Rieck: In a letter dated January 31, 1961, the Board acknowledged Your 1 addi„..etter of January 10, 1961 certifying that, as of that date, an yem,'lal $175,000 of cash was paid in by the sole shareholder of sci:1 v)rporation, The Philadelphia National Bank, against its subtio Pti°n to $3,500,000 of capital stock and noted that your Corporaad. issued 21,000 shares of its authorized common stock, receiving aYment therefor cash in the amount of $2,100,000. In accordance or tilY°ur request, the Board of Governors consented that the remainder tiot e capital stock of Philadelphia International Investment CorporaeC(; FXit ,paid in upon call from the Board of Directors of the provided that the Board of Governors shall have approved to ti,such increase in paid-in capital not more than ninety days prior "e date on which the increase is paid in. 4 Peder Your letter of December 1, 1961, transmitted through the karAal Reserve Bank of Philadelphia, requests the approval of the to$3 c'fb Governors to an increase in your Corporation,s paid-in capital to ee0,000. It is noted that the $1,400,000 increase you nor wish Naadeet will be by call from your Board of Directors upon the 114,000elPhia National Bank for cash payment in that amount, covering !dcliti, shares; that the increase is deemed necessary in view of the 04 —nal investment commitments engaged in and brought under negotiaa/1)1 . (011 the Corporation since January 10, 1961; and that you are most N41111„8 to reflect the increase in your financial condition prior to ver 31, 1961. ct: Seoi.., In accordance with your request and pursuant to the provisions 41.1'Pro , °n 25(a) of the Federal Reserve Act, the Board of Governors /f tze the increase in paid-in capital of Philadelp hia International nt Corporation from $2,100,000 to $3,500,00 0. Please advise the 4141e41 . ° Governors in writing, through the Federal Reserve Bank of 'Phia, when the additional capital has been paid in. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. /C 47-r- I tt.A.004,14w BOARD OF GOVERNORS OF THE Item NO. 3 FEDERAL RESERVE SYSTEM 12/13/61 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 13, 1961 Mr. Delos C. Johns, President, Federal Reserve Bank of St. Louis, St. Louis 66, Missouri. Dear Mr. Johns: In your letter of August 7, 1961, you advised the Board that you wished to withdraw your plan, approved by the Board June 21s 1961, for the pre-emergency storage of 1/ currency, and submitted for the Board's consideration a substitute plan. On October 19, 1961, you submitted for the Board's consideration a revised substitute plan which adopts for emergency currency distribution purposes the same geographical areas and agent cities as heretofore designated for emergency check operations. The Board appreciates being advised of the withdrawal of your plan for the pre-emergency storage of currency, and it interposes no objection to the revised substitute plan. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. I7--d5rrect date is June 21, 1960. 42„It) 4 " BOARD OF GOVERNORS OF THE Item No. FEDERAL RESERVE SYSTEM 4 12/13/61 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 130 1961 Board of Directors, State Bank of Arthur, Arthur, Illinois. G entlemen: This refers to your request for permission, under 1PPl1cab1e provisions of your condition of membership numbered ; Is to exercise fiduciary powers. Following consideration of the information submitted, the Board of Governors of the Federal Reserve System grants permission to State Bank of Arthur to exercise the fiduciary powers llow or hereafter authorized by its charter and the laws of the State of Illinois. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 4 5i BOARD OF GOVERNORS OF THE • Item No. 5 FEDERAL RESERVE SYSTEM 12/13/61 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 13, 1961 }Inc:IL/Id of Directors, -1,4-bizens State Bank, P4411-111), Washington. Qeritaemen: The Board of Governors of the Federal Reserve %%tem - approves the establishment of a branch in the Sumner suitiP „Pi-rig Center in the vicinity of the intersection of wa.ulaer-Buckley Highway and Parker Road, Pierce County, ea:LI-rigton, by Citizens State Bank provided the branch is .4kaished within one year from the date of this letter. It is noted that the bank's capital stock is to $100,000, in part by the sale of $10,000 par 11,4V1 oommOn stock, as required by the Supervisor of 44..ng of the State of Washington. be 4 "knereased Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. Ar04, , - ,k.")it) BOARD OF GOVERNORS oott,4 444 4 OF THE ti0444 i# Item No. FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS oFrIctAL CORRESPONDENCE TO THE BOARD 40t 4Pnt 6 December 13, 1961 T3ear Sir: The Board has decided to discontinue publication of it s A m. -nnual List of National Banks Authorized to Exercise vldu . di clary Powers. This decision was reached after informal d'escussions with persons connected with the bank examination cr,Partments of several of the Reserve Banks, the Office of the onlAroller of the Currency, and the Federal Deposit Insurance oration which disclosed that the Board's publication has 'Y L limited usefulness. O The Board will, of course, continue the present Pt 'aoti lett . ce of furnishing the Federal Reserve Banks copies of all ex' ers originated at the Board which relate to trust powers die cised by national and State member banks in their respective i ,: cts. The Board also will undertake to keep the Office of th:v1 00 Ptro11er of the Currency and the Federal Deposit Insurance of4P°ration currently informed concerning the fiduciary status Member banks. Very truly yo rs, Merritt She Secreta T° TUD —Lc" PRESIDENTS OF ALL FEDERAL RESERVE BANKS 6 12/13/61
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