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C19 Minutes for To: Members of the Board From: Office of the Secretary December 15, 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 Minutes of the Board of Governors of the Federal Reserve System °n Friday, December 15, 1961. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mills, Acting Chairman Robertson Shepardson King Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Sherman, Secretary Kenyon, Assistant Secretary Thomas, Adviser to the Board Young, Adviser to the Board and Director, Division of International Finance Molony, Assistant to the Board Fauver, Assistant to the Board Holland, Adviser, Division of Research and Statistics Koch, Adviser, Division of Research and Statistics Eckert, Chief, Banking Section, Division of Research and Statistics Yager, Economist, Division of Research and Statistics Money market review. Mr. Yager reviewed recent developments in the Government securities market, following which Mr. Eckert reported °la credit developments. In this connection Mr. Eckert distributed, and ceftlented upon, a group of charts showing recent trends in bank loans 441i investments and in personal savings and consumer liquid asset holdings. The meeting then recessed in order that the Board members might 111‘t1cipate in a phase of the Board's Christmas program. The meeting l'ee°rivened at 11:00 a.m. with the following staff attendance: Mr. Sherman, Secretary Mr. Kenyon, Assistant Secretary Mr. Farrell, Director, Division of Bank Operations Mr. Solomon, Director, Division of Examinations Mr. Johnson, Director, Division of Personnel Administration 12/15/61 -2Mr. Kiley, Assistant Director, Division of Bank Operations Mr. Leavitt, Assistant Director, Division of Examinations Mr. Sprecher, Assistant Director, Division of Personnel Administration Discount rates. The establishment without change by the Federal Reserve Banks of New York, Cleveland, Richmond, St. Louis, Minneapolis, Kansas City, and Dallas on December 14, 1961, of the rates on discounts arid advances in their existing schedules was approved unanimously, with the understanding that appropriate advice would be sent to those Banks. Items circulated to the Board. The following items, which had beell circulated to the members of the Board and copies of which are 4ttached to these minutes under the respective items indicated, were 413131 -----1 unanimously: Item No. Laetter to the Federal Reserve Bank of Richmond PX'O the appointment of Talbott D. Cockey al,ving Representative at tLrederal Reserve Agent's Baltimore Branch. 1 Letter to the Federal Reserve Bank of Minneapolis :t!eing that a former officer had entered a thelce deemed to be in the public interest within 14.4 nleaning of section 5A of the Rules and ReguRe:'")11s of the Retirement System of the Federal asferve Banks, as implemented by the resolutions aZed by the Board of Trustees on June 21, 1961, the Board's letter of August 4, 1961. 2 Letter 4 to all Federal Reserve Banks with reference to en,14.) changing reports of Federal Reserve Bank and expenses from a monthly to a quarterly ea 8; (2) discontinuing the monthly statement of : (i tags and expenses of Federal Reserve Banks; and ) r _equesting monthly reports showing the number of c '.ers and employees and salary expense. 3 12/15/61 -3Item No. g etter to United California Bank, Los Angeles, alifornia, approving an extension of time to establish a branch at Laguna Beach. 4 Letter to Carbon Emery Bank, Price, Utah, 5 Proving the establishment of a branch in ' 3UrlaYside. Letter to Wells Fargo Bank American Trust 44"PanY, San Francisco, California, approving e establishment of a branch in the vicinity °I. The Alameda and Hedding Streets, San Jose. 6 Idetter to Wells Fargo Bank American Trust rnPanY, San Francisco, California, approving he establishment of a branch in St. Helena. 7 j In connection with Item No. 2, Governor Robertson expressed the lils1/ that the established policy applicable to cases of this kind was essentially wrong and said that he would vote favorably on the matter bef°re the Board today only on the basis that such action would be e°4sistent with what had been done previously under the existing policy. In connection with the branch applications of Wells Fargo Bank Alellearl Trust Company, there was discussion of the question whether the aPPlicant bank appeared to be following a practice of filing certain 41P1/14cations without the intent of carrying forward to place the 1)44ches in operation with reasonable promptness. There being an 114ication that a number of branch applications may have been pending 't the Federal Reserve Bank of San Francisco for some time, it was e 114clerstood that the Division of Examinations would inquire into the elltumstances involved. The meeting then adjourned. t/L, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 1 12/15/61 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 15, 1961 *. Alonzo G. Decker, Jr., Chairman of the Board and Federal Reserve Agent, &leral Reserve Bank of Richmond, "ehrilond 13, Virginia. kar Mr. Decker: letter ofIn accordance with the request contained in your nt appointme the uvember 21, 1961, the Board of Governors approves at ative Represent Talbott D. Cockey as Federal Reserve Agent's theBaltimore Branch, to succeed Mr. William C. Norton. This approval is given with the understanding that %; 1?.(3ekeY will be solely responsible to the Federal Reserve Agent and Of Governors for the proper performance of his duties, except 0:71 during the absence or disability of the Federal Reserve Agent or alleY in that office, his responsibility will be to the Assistant D' 'ral Reserve Agent and the Board of Governors. When not engaged in the performance Pecte,. app 'al Reserve Agent's Representative, Mr. Cockey Of the Federal Reserve Agent and the Vice Of 2Vel of be ,sidue Branch, perform such work for the Consistent with his duties as Federal Reserve of his duties as may, with the President in charge Branch as will not Agent's Representative. It will be appreciated if Mr. Cockey is fully informed 01% the 4 the t, -LrflPortance of his responsibilities as a member of the staff of tro:ederal Reserve Agent and the need for maintenance of independence La the Operations of the Bank in the discharge of these responsibilities. It is noted from your letter that, upon the approval of the 4PPointment of Mr. Cockey by the Board of Governors, he will execute "Ual Oath of Office which will be forwarded to the Board. the Very truly yours? (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE Item No. 2 12/15/61 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE: TO THE BOARD December 15, 1961 Confidential OM) M. Frederick I. Deming, President, Federal Reserve Bank of Minneapolis, Minneapolis 2, Minnesota. Dear Mr. Deming: This refers to your letter of November 21, 1961, concerning the resignation of Mr. J. Dewey Daane, who has accepted an appointment in the United States Departnent of the Treasury as Deputy Under Secretary for Monetary Affairs. The Board of Governors agrees with your Board of ..irectors that Ei% Daane is entering a service deemed to be in 1 jhe Public interest within the meaning of Section SA of the ; ules and Regulations of the Retirement System of the Federal :serve Banks as implemented by the Resolutions adopted by the A°ard of Thus tees on June 21, 1961, and the Board's letter of ''llgust 4, 1961 (S-1802). Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 3 12/15/61 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 15, 1961, Dear 1r: the lok. Effective with the reporting period beginning January 1, 1962, 011 c 0c)ard has approved changing reports of Federal Reserve Bank earnings baei,1111 FR 95 and of expenses on form FR 96 from a monthly to a quarterly stet:: At the same time, the Board will discontinue issuing its monthly ' - ent, Earnings and Expenses of Federal Reserve Banks (L.4.1). therev. Because of the expanded information that will be submitted on 11,„ lsed functional expense reports, the itanization of Expenses Rele or Recoverable that is now shown on the reverse of form FR 96 diso be discontinued. 411, By request, the Board has been submitting to the Bureau of 04 :Statistics a report showing the number of officers and employees orPaYr011 of each Federal Reserve Bank and branch on the last day illis month and the total salary expense for the month. Heretofore i'll ormation has been taken from items 1 and 2 on form FR 96, Ateor,1411111 no longer be available from that source on a monthly basis. 44 b-4-1";g1Y, it is requested that arrangements be made for your Bank tionjanches (if any) to send monthly to the Division of Bank OperasPecial report showing the combined number of officers and 41' 4 ees as of the last day of the preceding month and the total exPanse for that month. Very truly yours Merritt She rma Secretary. ENTS OF ALL FEDERAL RESERVE BANKS BOARD OF GOVERNORS iraattttih, o 01401,4,4 tr tr . Sr tr 5 44 OF THE a a ta R* * * Item NO. FEDERAL RESERVE al STEM WASHINGTON 25. D. C. 4 12/15/61 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 15, 1961 Board of Directors, United California Bank, Los Angeles, California. Gentlemen: The Board of Governors of the Federal Reserve System extends until January 29, 1962, the time within which United California Bank, Los Angeles, California, may establish a branch in the vicinity of the intersection of Ocean Avenue and Coast Boulevard, Laguna Beach, California, under the authorization contained in the Board's letter of October 31, 1960. * Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. t BOARD OF GOVERNORS OF THE Item No. 5 FEDERAL RESERVE SYSTEM 12/15/61 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 15, 1961 Board of Directors, Carbon Emery Bank, Price, Utah. Gentlemen: The Board of Governors of the Federal Reserve 8Ystem approves the establishment of a branch in the central business district of Sunnyside, Carbon County, Utah, by Carbon Emery Bank, provided the branch is established within one year from the date of this letter. Very truly yours, (Signed) Elizabeth I. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS fomizoo, OF THE Item No. FEDERAL RESERVE SYSTEN1 12/15/61 WASHINGTON 25. D. C. A* ADDRESS OFFICIAL CORRESPONOENCE TO THE BOARD " December 15, 1961 Board of Directors, Wells Fargo Bank American Trust Company, San Francisco, California. Gentlemen: The Board of Governors of the Federal Reserve System approves the establishment of a branch in the vicinity of the Intersection of The Alameda and Hedding Streets, San Jose, Santa Clara County, California, by Wells Fargo Bank American Trust Company, provided the branch is established within one Year from the date of this letter. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 6 BOARD OF GOVERNORS OF THE Item No. 7 12/15/61 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE SOAR° December 15, 1961 rd of Directors, h .e.las Fargo Bank American Trust Company, 8`41 Franci5c0, California. Ge4t1,einen: The Board of Governors of the Federal Reserve 8Ys w4 ot 4, aPProves the establishment of a branch in the vicinity calre downtown business district of St. Helena, Napa County, the f,c)rnia, by Wells Fargo Bank American Trust Company, provided 4t4;1a:Ich is established within one year from the date of this Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary.
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