The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Minutes for December 18, 1957 To: Members of the Board From: Office of the Secretary Attached is a copy of the minutes of the Board of Governors of the Federal Reserve System on the above date. It is not proposed to include a statement with respect to any of the entries in this set of minutes in the record of policy actions required to be maintained pursuant to section 10 of the Federal Reserve Act. Should you have any question with regard to the minutes, it will be appreciated if you will advise the Secretary's Office. Otherwise, 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. Chm. Martin Gov. Szymczak Gov. Vardaman 1/ Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson 1/ In accordance with Governor Shepardson's memorandum of March 8, 1957, these minutes are not being sent to Governor Vardaman for initial. Minutes of actions taken by the Board of Governors of the Federal Reserve System on Wednesday, December 18, 1957. The Board met lathe Board Room at 10:00 a.m. PRESENT: Mr. Martin, Chairman Mr. Szymczak Mr. Mills Mr. Robertson Mr. Shepardson Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr, Mr. Mr. Carpenter, Secretary Kenyon, Assistant Secretary Riefler, Assistant to the Chairman Thomas, Economic Adviser to the Board Leonard, Director, Division of Bank Operations Young, Director, Division of Research and Statistics Hackley, General Counsel Molony, Special Assistant to the Board Nelson, Assistant Director, Division of Examinations Horbett, Associate Director, Division of Bank Operations Noyes, Adviser, Division of Research and Statistics Solomon, Assistant General Counsel Items circulated to the Board. The following items, which had been circulated to the members of the Board and copies of which are tteched to these minutes under the respective item numbers indicated, Iltc a roved unanimously: Item No. Lett r to the ethe Federal Reserve Bank of Boston regarding Ne.t4Proposed relocation of an existing branch of Springfield 40bal Bank, Springfield, Massachusetts. Letter 4 tim_ the the Federal Reserve Bank of St. Louis extending to e within which Lincoln Bank and Trust Company, ! 10v111es Kentucky, may establish a branch at Fourth ak Streets. 44 1 2 12/18/57 .Oft 4=1.e Item No. •••••••••• Letter to the Federal Reserve Bank of Kansas City approving an investment in bank premises by The Farmers State Bank of worland, Worland, Wyoming. 3 Letter to the Federal Reserve Bank of San Francisco extendthe time within which American Trust Company, San rancisco, California, may establish a branch at El Camino , "eal and California Avenue in Palo Alto, California. 14. Reserve requirements of central reserve and reserve city banks iII:apa No. 5). There had been distributed to the members of the Board e°13ies of a memorandum dated December 4, 1957, submitted by the New York Clearing House Association with a letter of December 11, 1957, and entitled "The Case for Equalizing Reserve Requirements of Central Reserve and Reserve City Banks." In this memorandum the Clearing House Associa- tion urged the termination of the present differential between reserve l'eq4irements of banks in central reserve cities and in reserve cities. This 1m8 the third memorandum on the subject submitted by the Clearing 11°Itse Association, the others having been submitted under dates of Mal'eh 18, 19531 and April 151 1954. In commenting on the matter at the request of the Board, Mr. Tho mas suggested that this was a subject which the Board would no doubt III" to consider in connection with its study of the whole question of l'eserve requirements. He went on to outline certain statistical material would be useful to the Board in this connection, including data covering interbank deposits of banks in various reserve classifications, and. stated that the development of such material would provide a better 12/18/57 -3- for judging whether at an appropriate time the Board would want to bring the reserve requirements of central reserve city banks down to the "'me level as reserve city banks or possibly reclassify some of the central reserve or reserve cities. Chairman Martin inquired whether it vas entirely clear that the Board now had legal authority to reclassify central reserve cities or to reduce the level of reserve requirements in such cities to the same level as prescribed for reserve city banks, and Mr. Hackley replied that there was no question about the Board's legal authority to take such actions. There followed a discussion of these matters in the light of the aPParent purpose and intent of the statute, at the conclusion of which 141.• Hackley amplified his previous comment by saying that, although the legal authority of the Board was clear, in view of the apparent intent aild Purpose of the law it might of course be considered inconsistent to cl° al/aY with one of the three classifications of cities for reserve PIIrPoses. In a subsequent comment Chairman Martin recalled that he had bee ll Pressed on this matter several times at the Congressional level, that at one point it appeared that a bill might be introduced to give the Board authority to declassify central reserve cities and the Board 1411t on record to the effect that it already had such authority, and that he thought it important to keep in mind the position previously t4ken by the Board. 3(382 12/18/57 With respect to the form of reply to be made to the New York Clearing House Association, Governor Mills inquired whether the Board felt that it could go as far as saying that its studies and thinking °n the subject of reserve requirements were now moving toward a uniform reserve requirement formula, and that if and when such a formula could be devised and submitted for consideration by the commercial banks and the Congress, the problem referred to by the Clearing House Association might be automatically solved. It appeared to him that the Association's Illernorandum reflected another indication of impatience on the part of the e°Mmereial banks about the development of a revised system of reserve l'eqtlirements and that the Board was definitely moving in the direction Of a uniform reserve requirement formula. All of the principal proposals 11°1'1 under consideration, he pointed out, had such a general objective. Governor Robertson inquired as to the amount of reserves that 11°1114 be released by reducing the reserve requirements of central reserve City banks to the same level as prescribed for reserve city banks, and MI% T1, -ilomas replied that a decrease of two percentage points in the l'equirements applicable to central reserve city banks would release an estimated one-half billion dollars of required reserves. Chairman Martin then said that his thought on the reply which 4 be made h°U] to the Association would be to write a brief letter along the lines that the memorandum had been brought to the attention of the 18°ard and that as, if, and when the Board decided that reserve requirements 3683 12/18/57 -5- should be changed, this proposal -would be borne in mind. He vent on to make the comment that the commercial bankers may have been encouraged by certain remarks which he had made to anticipate a basic change in the system of reserve requirements, with the result that anything said by the Board at this time might be taken as an indication of encouragement for one proposal or another. He recalled that he had expressed himself rePeatedly as favoring uniform reserve requirements and said that the e°mmereial bankers had gone in the direction of relating this position to specific proposals. Governor Robertson expressed himself as having considerable 13/rIni"athy toward the clearing house proposal at the right time, but said that he 'would not want to reach a decision on the matter without full "Ploration of the 'whole background pertinent to the subject. In general, if a situation should arise in the next few months where it seemed desirable to provide reserves, he was inclined to feel that it might be feasible to start with some action along the lines proposed, since this ealad be done without action by the Congress. Governor Szymczak indicated that he favored a reply to the Ne'York Clearing House Association along the lines proposed by Chairman 14"tin• He felt that if the Board should give any indication of favoring Particular reserve requirement proposal, considerable pressure was like, -Y to be exerted. Also, if the Board should change the requirements central reserve city banks, he felt that banks in other categories r41411t take the position that such action vas not equitable. 12/18/57 At the conclusion of the discussion, Governor Mills brought out that at the meeting on December 92 1957, the Board had set January 31, 1958) as a target date for the presentation of staff analyses of the current reserve requirement proposals and consideration of the subject by the Board. Thereupon, approval was given to a letter to the New York Clearing House Association in the form attached hereto as Item No. 5. Mr. Nelson withdrew from the meeting at this point. Request of Otto Bremer Company (Item No. 6). In a letter dated tteember 130 1957, counsel for Otto Bremer Company, St. Paul, Minnesota, tecIllaated an extension from January 2, 1958, to February 280 1958, of the tim e for submission of proposed findings and conclusions and supporting bllaf in connection vith the hearing relating to the applications of the c°a1Pati.Y under section 4(c)(6) of the Bank Holding Company Act. In a laera31 ' aladum dated December 17, 1957, of which copies had been sent to the 1 of the Board, Mr. Solomon recommended that the request be granted 111e/ba's 644 'stated that the Hearing Expminer would have no objection. A draft el order granting the request was submitted with the memorandum. Pursuant to Mr. Solomon's recommendation, unanimous approval was f°:vall to the proposed order, of which a copy is attached as Item No. 6, I1it"11 the understanding that copies would be sent to the appropriate Parties. !t12211011122ent of directors. Chairman Martin stated that question 144 been raised whether it was the intention at the meeting on December 9, 1957 'to appoint Mr. J. H. Longwell as Deputy Chairman of the Federal 3CS.5 12/18/57 -7- Reserve Bank of St. Louis for the year 1958 or to defer a decision pending the aPpointment of a Class C director at the St. Louis Bank for the term beginning January 1, 1958. Following a brief discussion in the light of conversations which the Chairman had had with Chairman McBride of the Federal Reserve Bank °f St. Louis pursuant to the understanding at the December 9 meeting, it voted unanimously to appoint Mr. Longwell as Deputy Chairman of the 'hlt for 1958; to ascertain Whether Mr. Jesse D. Wooten, Executive Vice 8. President of the Mid-South Chemical Corporation, Memphis, Tennessee, would accept appointment, if tendered, as a Class C director of the Bank for the three-year term beginning January 1, 1958; to ascertain whether Robert H. Alexander, Scott, Arkansas, would accept appointment, if teridere,, a as a director of the Little Rock Branch for the three-year terra beginning January 1, 1958; and to ascertain whether Mr. Waldo E. Ttllery President of the Tiller Tie & Lumber Company, Little Rock, Arkw,, —46as, would accept appointment, if tendered, as a director of the Little n zxook Branch effective January 1, 1958, for the unexpired portion "the term expiring December 31, 1958, to succeed Mr. A. Howard Stebbins, '1410 had submitted his resignation effective December 311 1957; with the Understanding that if Messrs. Wooten, Alexander, and Tiller would 4ceePty the appointments would be made. Chairman Martin then reviewed the cases where proposed appointees "Reserve Bank and branch directors had indicated that they would accept 368 12/18/57 -8-- aPPointment if tendered, with the result that the appointments had now been made. He also referred to vacancies remaining to be filled and the steps being taken in those cases, and Governor Mills referred to the Prospect of a recommendation from the Chairman of the Federal Reserve Bank of San Francisco to fill a vacancy on the board of the Seattle Branch. All of the members of the staff except Messrs. Riefler, Carpenter, Leonard, and Kenyon then withdrew from the meeting. Defense planning staff (Item No. 7). There had been distributed t° the members of the Board copies of a memorandum from Governor Robertson dated December 13, 1957, in Which he made certain recommendations for changes in assignments of members of the Board's staff in connection vith defense planning responsibilities. A copy of the memorandum is a ttached as Item No. 7. Following comments by Governor Robertson, the recommendations c°ntained in the memorandum were approved unanimously. Messrs. Riefler and Leonard then withdrew from the meeting. Salaries at Federal Reserve Bank of Richmond (Item No. 8). There h" been distributed to the members of the Board copies of a letter dated neeenlber 12, 1957, from Chairman Woodward of the Federal Reserve Bank of RiehMond stating that the Bank's Board of Directors had fixed the salaries Of President Leach and First Vice President Wayne for the year 1958 at the rates of $35,000 and $27,000, respectively, subject to approval by the Board. The proposed salary for Mr. Wayne would represent an increase 't $2,000. 9 12/18/57 S a.'4 I( -9- The matter was discussed at some length from the standpoint of the general philosophy which should govern the level of salaries of top °Illoials in the Federal Reserve System, the desirability of fixing rates Of salary for Presidents and First Vice Presidents on the basis of illdtvidual performance, the probability of the receipt of similar proposals from other Reserve Banks if the higher salary for Mr. Wayne should be approved, and the problems which would be involved in such circumstances. At the conclusion of the discussion, it was agreed unanimously t° approve the salary of $27,000 proposed for Mr. Wayne on the basis outstanding performance and with the understanding that the sane Salary would not necessarily be approved for another incumbent of the et/41e Position or for the same position at another Federal Reserve Bank. 4 copy of the letter sent to Chairman Woodyard pursuant to this action 16 attached hereto as Item No. 8. Federal Reserve Bank budgets. Governor Szymczak reported that PlIrsuant to the understanding at the meeting on December 10, 1957, in e°11nection with acceptance of the Federal Reserve Bank budgets for 1958, he had talked with President Fulton of the Federal Reserve Bank of Cl eveland about plans for ceremonies incident to the opening of the Xe addition to the Pittsburgh Branch building with a view to keeping eenditures within proper limits, and that he had had a similar (118°Ilasion with President Bryan of the Federal Reserve Bank of Atlanta 12/13/57 -10- respect to plans for the opening of the new Nashville Branch building and the addition to the Birmingham Branch. He said that both Presidents had indicated that they would be careful about keeping expenditures within aPPropriate limits. Governor Shepardson said that he had begun work with Mr. Farrell, Aasistant Director, Division of Bank Operations, in the development of material for the Board's consideration yid& might be helpful in reaching a Position on the question of membership dues end contributions, in hu ewith the statement made in the letters to the Federal Reserve Banks aceePting the 1958 budgets that the Board intended to study the matter Alrther and that the Banks would be advised later in this regard. Governor Shepardson also said that he had discussed with Messrs. Leonard and Farrell the nature of the problems involved in reviewing the Pederal Reserve Bank budgets, along with the methods used in preparing the budgets, with a view to the possibility of delineating more specifically The areas of particular responsibility and revising the method of Preaantation of the budget analysis in such a way as to facilitate review 1DY the Board. He indicated that these studies might result in suggestions fc3r revising the instructions for preparation of the Reserve Bank budgets 17111°r to the submission of the 1959 budgets. It was agreed that it would be advisable to proceed with studies 41°Iag the lines Governor Shepardson had indicated. In this connection, the , sk'ggestion was made that there be informal meetings of the Board, or deaignated members of the Board, with the Presidents of the respective 12/13/57 -11- Federal Reserve Banks prior to the preparation of future budgets in °rder to review questions of policy. It was understood that this slIggestion and the manner in which it might most appropriately be carried oUt would be the subject of further consideration by the Board. The meeting then adjourned. Secretary's Notes: At the meeting on December 9, 1957, it was voted to ascertain whether Mr. Nils Wessell would accept appointment, if tendered, as a Class C director of the Federal Reserve Bank of Boston for the unexpired portion of the term ending December 31, 1959, with the understanding that the appointment would be made if it were found that Mr. Wessell would accept. Advice to such effect having been received, a telegram to Mr. Wessell notifying him of his appointment was sent on December 17, 1957. Pursuant to the action taken by the Board on December 6, 1957, concerning the conversion of First of Boston International Corporation into The First Bank of Boston (International), there was sent to the Federal Reserve Bank of Boston under date of December 17, 1957, the letter of which a copy is attached as Item No. 9. Pursuant to the recommendation contained in a memorandum dated December 10, 1957, from Mr. Daniels, Assistant Controller, Governor Shepardson approved on behalf of the Board on December 17, 1957, the transfer of L. Waite Waller, Jr., from the position of Assistant Federal Reserve Examiner, Division of Examinations, to the position of Accounting Clerk, Office of the Controller, with no change in his basic annual salary at the rate of $4,525, effective January 2, 1958. 12/18/57 -12Governor Shepardson today approved on behalf of the Board a letter to the Federal Reserve Bank of Minneapolis approving the appointment of Richard C. Timmerman as examiner. A copy of the letter is attached as Item, No. 10. 71 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. 0. C. ADDRESS Item No. 1 12/18/57 orriciAt. CORRESPONDENCE TO THE BOARD December 18, 1957 Mr. Benjamin F. Groot, Vice President, Federal Reserve Bank of Boston, Boston 6, Massachusetts. Dear Mr. Groot: Reference is made to your letter of December 20 19572 advising of the proposed change in location of the Longmeadow Branch of the Springfield National Bank from 473 to 378 Longmeadow Street and requesting advice as to Whether formal approval of the Board is required. The Board on November 20, 19570 approved the continued operation of this branch by Union Trust Company of Springfield incident to the merger with Springfield National Bank, and you advise that the relocation of the branch will be accomplished prior to the merger under the authority of the Comptroller of the Currency. From the information submitted, it appears that the proposed change would constitute a mere relocation of an existing branch in the immediate neighborhood without affecting the nature of its business or the customers served. Under the circumstances, formal approval of the lbard of Governors is unnecessary. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. BOARD OF GOVERNORS OF THE .77777 FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. 1,7 Item No. 2 12/18/57 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD 44000** December 18, 1957 14r. George E. Kroner, Vice President, Federal Reserve tank of St. Louis, St. Louis 2, Lissouri. Dear pr. Kroner: Reference is made to your lettr of Deceniber 1957, recocmending that the Board of Governors grant Lincoln Bank and Trust Company, Louisville, Kentucky, an extension of time in which to establish a branch at the southwest corner of Fourth and Oak Streets, Louisville, Kentucky. • After consideration of the information submitted, the roard of Governors extends to December 31, 1957, the • time within which the Lincoln Bank and Trust Company may establish the branch. Very truly yours, (Signed) Merritt Sherman rerritt Sherman, Assistant '73ecrotory. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C Item No. 3 12/18/57 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD *0 ,fkm0: December 18, 1957 Woolley, Vice President, rrFederal Reserve Bank of Kansas City, Kansas City 6, Missouri. Lear Jr. Woolley: . Reference is made to your letter of DeceMber 3, 12571 with respect to approval, under the provisions of section 24A of the Federal Reserve Act, of an excess investment in bank premises by The Farmers State '2ank of ; IItirland, Worland, Woming. After considering the available information, the Board of Governors approves the additional investment in bank premises of 1.611000 by The Farmers State tank of Worland,, Worland, Woming, for the purchase of additional real estate for parking facilities. Very truly yours, (Signed) Merritt Sherman Perritt Sherman, Assistant secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 4 12/18/57 WASHINGTON 25, D. C. rt ADDRESS OFFICIAL CORRESPONOENCE • TO THE kvg.14 ' 044o6" aoARo '10 December 18, 1957 L,14r* E. IL Millard, Vice President, sderai Reserve Bank of San Francisco, San Francisco 20$ California. l)ear Mr. Millard: As recommended in your letter of November 29, 1957, the Board of Governors extends to June 23, 19581 the time within Which American Trust Company, San Francisco, California, y establish a branch at El Camino Real and California Avenue l'alo Alto, California. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. BOARD OF GOVERNORS OF THE Item No. 5 FEDERAL RESERVE SYSTEM 12/18/57 WAS H I NGTON OFFICE OF THE CHAIRMAN December 19, 1957 Mr. Howard C. Sheperd, President, Hew York Clearing House Association, :7,7-83 Cedar Street, New York 5, New York. Dear Mr. Sheperd: The Board appreciates the submission by the New York Clearing House Association of the memorandum dated December h, ., 1 in which is presented the case for equalizing reserve requirements of central reserve and reserve city banks. You will recall that when a similar proposal was subm itted in 1954 the Board responded that "the question whether 4urti c„ , uer action should or should not be taken has not been deo ued but in the study that the matter will have, the desirability the as other actions that action proposed by the Association as well reviewed.' might be taken in this field will be fully The Board must repeat that statement in response to current presentation. As you know, the problem of an appro'eate structure of reserve requirements is an extremely complica Pl c1 one and any action taken to change the existing situation inv , of (4.ves not only many different points of view but the question seer°Per timing. You may be assured, however, that when action visfr.is appropriate either under the present law or under any reof the law that Congress may adopt, all of the facts and As,,sons submitted in support of the change recommended by your '°oiation will be given full and complete consideration. the Sincerely, tatij-cV017-44-F Wm. McC. Martin, Jr. 0 Item No, 6 UNITED STATES OF AMERICA 12/18/57 BEFORE THE BOARD OF GOVErNoRS OF THE FEPERAL REEERVE SYSTEM WASHINGTON, D. C. IN THE MATTER OF THi APPLICATIONS OF OTTO BREMER COMPANY DOCKET NUMBERS BHC - 29, 31-33, 35 ORDER EXTENDING MAE WITHIN WHICH APPLICANT MAY SUBMIT TO HEARING EXAYINER PROPOSED FINDINGS AND CONCLUSIONS, AND SUPPORTIFG BRIEF Additional time having been requested by the Applicant, Otto Breler Company, within uhich to submit to the Hearing Examiner Proposed findings and conclusions, and supporting brief, and it aPPearing to the Board that such request should be granted, it is hereby ORDERED that the time within which the Applicant may file such Proposed findings and conclusions, and supporting brief, be, 1958. and the same hereby is, extended to and including February 28, This 18th day of December 1957. By order of the Board of Governors. (S L) penter, tary. BOARD OF GOVERNORS Item No. 7 Of THE 12/18/57 FEDERAL RESERVE SYSTEM °F fice Correspondence 10 Date December 13, 1957 Subject: Dafenae_ Planni rig tson Pursuant to the program approved by the board at its meeting cf Jn with responsibility f --nuarY 26, 1953, a Staff Committee was set up -or keeping up to date the Board's plans for operations in an emerY arising out of enemy action and for coordinating these plans the over-all program of the Government. That committee was to ;..c.ialde representatives of the Division of Administrative Services, "K1 Division, Division of Personnel Administration, Division of consultat.OPerations, and Secretary's Office, and would work in ion with me. V V . The committee has consisted of the heads of the divisions Research of rialned above. I now recommend that the head of the Division 44d Statistics be added to that committee. a In view of Mr. Bethea's retirement, Mr. Kelleher becomes nt assignme in leillber of the Staff Committee, and a number of changes necessary. Following is a list of the contemplated assignments. have Supersede former designations recorded in the minutes; others e been administrative designations: Chairman of the Staff Committee Mr. Leonard, as successor to Mr. Bethea Secretary of the Staff Committee Mrs. Sanders, as successor to Mr. Kelleher Alternate on the Interagency Planning Group of ODM Mr. Farrell, as successor to Mr. Bethea Relocation Officer Mr. Kelleher, as successor to Mr. Bethea ODM was advised that Mr. Bethea ',who has heretofore been authorized to act for the Board of Governors in local civil defense matters, has been requested to with the Office maintain appropriate continuing liaison Civil Federal the of Defense Mobilization and with the keeping to Defense Administration with the view in with harmony and Board's relocation Plan up to date of Deputy Director the program of the Government." The been also has s Civil Defense for Federal Building advised that Mr. Bethea was authorized to act for the Board in local Civil Defense matters. Mr. Kelleher Board o Governors would carry on Mr. Betheats former assignments in connection with Civil Defense and Board relocation matters. In effect, Mr. Bethea performed the functions of a Relocation Officer although there was no such designation. It would seem appropriate to make such designation now. 1A,Ta Temporarily Mr. Kelleher will continue as Chief Building iritil other arrangements can be made. $'z'fil„f) SOARD OF GOVERNORS OF THE Item No. 8 FEDERAL RESERVE SYSTEM 12/18/57 WASHINGTON OFFICE CP THE CHAIRMAN December 18, 1957 CyNFIDENTIAL (FR) Mr. John B. Woodward, Jr., Chairman, Federal Reserve Bank of Richmond, Richmond 13, Virginia. Dear Mr. Woodward: The Board of Governors approves the payment of salary to Mr. Leach as President and to Mr. Wayne as First Vice President of the Federal Reserve Bank of Richmond for the period January 1, 1958 through December 31, 1958, at the rates of 05,000 and $27,000 per annum, respectively, which are the rates fixed by the Board of Directors as reported in your letter of December 12, 1957. The Board has approved the First Vice Presidentts salary in recognition of the outstanding service and performance Of Mr. Wayne and, therefore, this action is not an indication that the Board would be willing to approve a similar salary for another incumbent in this position or for the same position at another Federal Reserve Bank. Sincerely yours, Wm. McC. Martin, Jr. 37f.10 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 9 12/18/57 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONOENCE TO THE SOAR') December 17, 1957 Mr. J. A. Erickson, President ) Federal Reserve Bank of Boston, Boston 6, Massachusetts, Dear Mr, Erickson: Enclosed you will find (1) a draft of the substantive portions of a certificate with respect to the directors, stock ownership and paid-in capital of First of Boston International Corporation and The First Bank of Boston (International) and (2) a permit for First of Boston International Corporation to convert into The First Bank of Boston (International) and for the latter to commence business. It is understood that First of Boston International ?.°rPoration and The First Bank of Boston (International) conmplate delivering to you on December 20, 1957, a certificate as n the draft referred to in (1) above, the certificate to be 2ertified i by the president, cashier or secretary of The First , t'Elnk of Boston (International) and by at least three additional "irectors of that Corporation. It will be appreciated if, upon Yjur receipt of this certificate on December 20, 1957, you will 4rreupon deliver to The First Bank of Boston (international) the tl'itaohed permit described in (2) above, and advise us accordingly. r Copies of this letter, including drafts of the enclosures, ar.e of New York and to Messrs. Etin ueinr sent to the Federal Reserve Bank guam, Dana & Gould, counsel to The First Bank of Boston (Internatio 1\ na ), for their information. Very truly yours, (Signed) S. R. Carpenter Enclosures S. R. Carpenter, Secretary. BOARD OF GOVERNORS OF THE Item No. 10 12/18/57 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD Mr. Frederick L. Deming, President, Federal Reserve Bank of Minneapolis, Minneapolis 2, Minnesota. Dear Mr. Deming: In accordance with the request contained in Your letter of December 4, 1957, the Board approves the aPPointment of Richard C. Timmerman as an examiner for the Federal Reserve Bank of Minneapolis. Please advise the Board if the appointment is not made effective January 1, 1958, as planned. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretaryo
@FedFRASER