The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Minutes for
To:
Members of the Board
From:
Office of the Secretary
December 18, 1958
Attached is a copy of the minutes of the Board of Governors
Of the Federal Reserve System on the above date.
It is proposed to place in the record of policy actions
required to be kept under the provisions of Section 10 of the
Federal Reserve Act an entry covering the item in this set of
minutes commencing on the page and dealing with the subject referred to below:
Page 11
Inclusion of Alaska in Twelfth Federal Reserve
District and amendments to Regulations G,
H, J, and U.
Should you have any question with regard to the minutes,
it will be appregited 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.
A
Chairman Martin
Governor Szymczak
Governor Mills
Governor Robertson
Governor Balderston
Governor Shepardson
IIPVTj A
_AlIOW
3S4
Minutes of the Board of Governors of the Federal Reserve
System on Thursday, December 18, 1958.
The Board met in the Board
Room at 10:00 a.m.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Martin, Chairman
Szymczak
Mills
Robertson
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Sherman, Secretary
Kenyon, Assistant Secretary
Thomas, Economic Adviser to the Board
Johnson, Director, Division of
Personnel Administration
Hackley, General Counsel
Masters, Director, Division of
Examinations
Connell, Controller
Farrell, Associate Director, Division
of Bank Operations
Conkling, Assistant Director, Division
of Bank Operations
Noyes, Adviser, Division of Research
and Statistics
Dembitz, Research Associate, Division
of Research and Statistics
Hexter, Assistant General Counsel
Hostrup, Assistant Director, Division
of Examinations
Nelson, Assistant Director, Division
of Examinations
Bass, Assistant Controller
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:
3S.
12/18/58
-2Item No.
Letter to the Central Trust Company, Rochester, New
York, approving the establishment of a branch in the
Panorama Plaza Shopping Center. (For transmittal
through the Federal Reserve Bank of New York)
1
Letter to The Morristown Trust Company, Morristown,
2
New Jersey, approving the establishment of branches in
Madison and Florham Park incident to a proposed merger
With First Bank and Trust Company, Madison, New Jersey,
under the title of Trust Company of Morris County. (For
transmittal through the Federal Reserve Bank of New York)
Letter to the County Trust Company of Maryland, Glen
Burnie, Maryland, approving the establishment of a branch
in Lexington Park. (For transmittal through the Federal
Reserve Bank of Richmond)
3
Letter to the Federal Reserve Bank of Dallas regarding the
effect of section 32 of the Banking Act of 1933 and the
Board's Regulation R on the service of Mr. Sidney A.
Wooldridge as a director of a national bank and as an
employee of Rauscher, Pierce & Co., Inc.
4
Letter to the Southern Arizona Bank and
Arizona, denying a further extension of
establish a brench at Rook and Speedway
transmittal through the Federal Reserve
5
Trust Company, Tucson,
time within which to
Avenues. (For
Bank of Dallas)
Memorandum from Messrs. Thomas and Young recommending
Publication of the initial study of Federal funds
transactions.
6
Letter to the Federal Reserve Bank of Chicago approving an
adjustment in the salary structure applicable to employees
Of the
Detroit Branch.
7
In discussion preceding action on the foregoing Item No. 7,
Governor Mills noted that approval of the proposed salary structure
r°r the Detroit Branch would place the Branch structure higher than
t
hat of the head office and raised the question whether it was wise
12/18/58
-3-
Policy, pending consideration of any recommendation emanating from
the current community wage survey in Chicago, to have a considerable
divergence between the two structures.
Mr. Johnson responded by discussing the theory involved in
the use of a "prevailing rate" approach.
He also commented that at
times in the past the structures of certain branches had been on a
higher scale than the structures of their respective head offices,
that it was not feasible to make wage surveys in Chicago and Detroit
simultaneously because the head office used a professional survey
while the branch participated in a survey made at the time of year
most convenient to the other participants, and that it was not yet
entirely clear whether the Chicago Reserve Bank would recommend
adjustment of the salary structure applicable to head office
smPloyees.
Governor Mills then inquired whether a higher branch structure
might not constitute an obstacle in arranging personnel transfers from
the branch to the head office. Mr. Johnson replied that such
transfers generally involve personnel in the higher grades of the
salary structure and that the Detroit Branch would not have a
great many employees in the higher grades.
Also, when an employee
t8 moved from a branch to the head office, it is generally to a
Position of higher classification.
12/18/58
The discussion included a comment by Mr. Farrell that the
Chicago Bank's letter on the proposed Detroit salary structure
adjustment mentioned that the structure change would result in
expenditures of about $32,000 above the budget as submitted, and
that the budget therefore should be changed.
However, when this was
brought to President Allen's attention, he indicated that the Bank's
letter had been phrased inaccurately.
Accordingly, the Board's
letter accepting the Bank's budget for 1959 contained language to
the effect that any salary adjustments following approval of the
l'evised salary structure should be taken into account in the budget
experience report and that the Detroit Branch should do its best to
Stay within the budget.
This, Mr. Farrell said, was in line with
advice that President Allen had already given to the Branch.
Assessment to cover expenses of the Board.
There had been
distributed to the members of the Board a memorandum from Mr. Connell
dated December 16, 1958, stating that approximately $3,345,350 would
be needed for the estimated expenses of the Board for the first half
°f 1959, as shown in an attached tabulation. It was recommended
that an assessment of .00272 of the total paid-in capital and surplus
Of the Federal Reserve Banks as of December 31, 1958, be levied upon
the Banks. Based on an estimated Federal Reserve Bank capital and
aurplus of $3,230,000,000, this rate would produce a total of $3,345,600.
391'
-5-
12/18/58
In discussion of the matter, Governor Mills pointed out that
the estimate of expenses did not take into account certain reductions
in the Board's 1959 budget which were agreed upon yesterday pursuant
to recommendation of Governor Shepardson.
It was likewise noted that the Board yesterday approved the
setting up of a special project budget to take care of the preparation
Of preliminary sketches and estimates for a shelter across ftCH Street,
and that the cost of such preliminary work apparently would be around
$37,500.
Pursuant to Governor Mills' suggestion, it was agreed that
a revised assessment should be computed on the basis of all
adjustments in the 1959 budget agreed upon yesterday by the Board,
With the understanding that appropriate advice of the assessment
would then be sent to the Federal Reserve Banks.
Secretary's Note:
A revised tabulation, as presented with a
memorandum from Mr. Bass dated December 22,
1958, indicated that approximately $3,329,000
would be needed for the estimated expenses of
the Board for the first half of 1959, and that
an assessment of .00271 of the total paid-in
capital and surplus of the Reserve Banks as of
December 31, 1958, would produce a total of
$3,333,300. The advice of assessment was sent
to the Federal Reserve Banks on such basis.
Messrs. Connell, Dembitz, and Bass then withdrew from the
meeting.
3S'
12/18/58
-6-
Items distributed to the Board.
There had been distributed
to the members of the Board memoranda from the Division of Bank
Operations as follows:
Memorandum dated December 15, 1958, recommending that the
Board give advance authority for the sending on January 2, 1959, of
the usual telegrams to the Federal Reserve Banks specifying the
interest rates on Federal Reserve notes for the last month of 1958
for the purpose of making payments to the Treasury. This plan,
designed to speed up administrative procedures at the Reserve Banks
and at the Board, was the same as followed in previous years. The
memorandum noted that, in accordance with the procedure established
in 1952 and consistent with the former franchise tax provision for
transfer to surplus of all net earnings until surplus equals 100
Per cent of a Reserve Bank's subscribed capital stock, appropriate
deductions would be made from the net earnings of the Atlanta and
Dallas Reserve Banks before computing their interest payments to the
Treasury. It was estimated that the transfers to surplus would be
about $400,000 at Atlanta and $200,000 at Dallas.
Memorandum dated December 16, 1958, recommending that the
respective Federal Reserve Banks be advised that the Board had noted
Without objection their proposed 1958 year-end entries to profit and
loss accounts. Reports from the Reserve Banks had indicated that
they did not contemplate any special charge-offs, depreciation
allowances, or other year-end adjustments requiring the approval of
the Board.
Memorandum dated December 16, 1958, recommending procedures
for the release of the Weekly Federal Reserve Statement, the Weekly
Statement of Condition of Reporting Member Banks in Central Reserve
Cities, and the Weekly Reporting Member Bank Statement during the
1958 holiday season. These procedures were suggested principally
because of the holiday on Friday, December 26, and would be
aubstantially similar to those used in the 1952 holiday season. It
,
11_as proposed that if these procedures were approved, a telegram would
°e sent to all Reserve Bank Presidents and Assistant Federal Reserve
Agents giving notification and instructions.
Following discussion, the recommendations contained in the
three memoranda from the Division of Bank Operations were approved
unanimously.
381,9
-7-
12/18/58
Final tax certification for Transamerica Corporation (Item
No. 8). Pursuant to the recommendations contained in memoranda from
the Division of Examinations dated November 21, 1958, and from Mr.
Hexter dated December 16, 1958, both of which had been distributed
to the Board, unanimous approval was given to the issuance of a
final certification that Transamerica Corporation, San Francisco,
California, formerly a bank holding company as defined in section
2(a) of the Bank Holding Company Act of 1956, had ceased to be a
bank holding company before the expiration of the period specified
in sub-paragraph (B) of Section 1101(e)(2) of the Internal Revenue
Code of 1954, with the understanding that duplicate originals of the
certificate would be sent to Transamerica Corporation and to the
Commissioner of Internal Revenue.
A copy of the certificate issued
Pursuant to this action is attached as Item No. 8.
Possible legislative proposals. Pursuant to the request at
4 recent meeting, there had been sent to the members of the Board
copies of a memorandum from Mr. Hackley dated December 16, 1958,
discussing three principal items of legislation that might be
Proposed for consideration by the next Congress; namely, revision
of reserve requirements, the HFinancial Institutions Act?' considered
by the last Congress, and amendments to the Bank Holding Company Act
recommended in the Board's report to Congress of May 7, 1958.
With
respect to the proposed Financial Institutions Act, the memorandum
-8-
12/18/58
outlined possible alternatives, such as the separate introduction
of certain important provisions and the inclusion of technical
amendments in an omnibus
Following a review by Mr. Hackley of the items of proposed
legislation and the alternatives available for their consideration,
Chairman Martin inquired as to the thoughts of the other members of
the Board regarding the approach that should be taken in responding
to the request of Chairman Spence of the House Banking and Currency
Committee for the Board's views.
With respect to the proposal on reserve requirements,
Governor Robertson noted that he continued in his personal objection
to the section which would provide the same maximum and minimum
range for central reserve as for reserve city banks.
However, he
recognized that the reserve requirement proposal as a whole was in
line with the thinking of the majority of the Board earlier this
Year.
As to the Financial Institutions Act, he suggested that one
approach would be to seek enactment of the bill as it passed the
Senate in 1957, but with omission of certain controversial provisions
which might hold up the whole bill, while another possible approach
would be to recommend for enactment as separate bills several
Provisions originally proposed by the Board which might be deemed
sufficiently important.
One of the separate measures might be an
Omnibus bill including various technical amendments.
382
-9-
12/18/58
Governor Mills said it would appear to him that the Board
should limit its requestsfor legislation to measures in which it had
a direct interest.
He deemed the most essential to be legislation
on reserve requirements and amendments to the Bank Holding Company
Act in that order.
Possibly, there might also be a measure that
would eliminate technical inconsistencies now found in the Federal
Reserve Act.
The Financial Institutions Act, he noted, was originally
Promulgated by Senator Robertson with the assistance of various
agencies of the Government.
Therefore, if provisions of that Act
were revived within the Congress, it might be supposed that the
Board would have an opportunity to express its opinion on them.
On the other hand, to burden the Congress with a measure having
numerous items that were confusing would stand to jeopardize the
Chances of obtaining legislation on matters of more direct and
serious import to the Federal Reserve System.
Governor Szymczak indicated that his views were along the
lines of those stated by Governor Mills.
Chairman Martin then inquired whether it would be appropriate
to express to Chairman Spence the view that legislation on reserve
requirements should have first priority, with amendments to the Bank
Holding Company Act second and whatever might come out of the
Financial Institutions Act in third place.
There were no dissenting comments, and Chairman Martin stated
that he thought the discussion at this meeting had given him a
3822
-10-
12/18/58
sufficient feel of the Board's thinking to enable him to talk with
Mr. Spence.
Mr. Fauver, Assistant Secretary, entered the room at this
point.
Forthcoming meetings.
Following comments by Mr. Fauver, it
was indicated that there would be no objection to going forward with
arrangements similar to those followed in past years with respect to
Board participation in forthcoming visits to Washington by various
state bankers associations.
Mr. Fauver noted that the Board's staff,
in cooperation with the American Bankers Association, was endeavoring
to combine the visits of the respective associations to the Board's
Offices whenever possible.
Mr. Fauver then raised the question of the dates to be fixed
for the annual program for newly elected or appointed Federal Reserve
Bank and branch directors.
After some discussion, it was agreed
that the program should be held on Friday, February 20, with the
dinner for the directors on the preceding evening.
Mr. Fauver next raised the question of a spring meeting of
the Conference of Chairmen of the Federal Reserve Banks, to which the
Chairmen of the respective branch boards of directors presumably
would be invited.
After consideration of the prospective schedule of the Board
and related matters, it was the consensus that the effort that would
be required on the part of the Board and its staff to prepare for and
-11-
12/18/58
participate in such a meeting would be a substantial burden in what
probably would be a very busy spring, and for that reason it seemed
doubtful that the benefits to be gotten from a meeting of the type
discussed would warrant holding it in 1959.
In this connection,
however, it was noted that a firm decision would not have to be made
until around the first of February.
The members of the staff then withdrew and the Board went into
executive session.
Following the executive session, the meeting
recessed and reconvened at 5:25 p.m. with Chairman Martin and
Governors Szymczak, Mills, and Robertson present along with Messrs.
Sherman and Hackley.
Alaskan Statehood (Item No. 9).
Section 19 of the Alaska
Statehood Act amended Section 2 of the Federal Reserve Act to provide
that "when the State of Alaska is hereafter admitted to the Union
the Federal Reserve districts shall be readjusted by the Board of
Governors of the Federal Reserve System in such manner as to include
such State."
The Board having indicated in a letter to the House
Banking and Currency Committee and otherwise that it intended to
include Alaska in the Twelfth Federal Reserve District when Statehood
became effective, it was suggested in a memorandum from Mr. Chase
dated December 15, 1958, which had been distributed before this
meeting,
that the Board might wish to authorize its Secretary to
send a telegram to the Presidents of the Federal Reserve Banks
regarding this matter uoon receivinc advice that the President of
3824
-12-
12/13/58
the United States had signed a proclamation making the Statehood of
Alaska effective.
A draft of telegram, Ivith appropriate dates to be
filled in, was submitted with the memorandum.
Aside from indicating that the Federal Reserve districts had
been readjusted so as to include Alaska in the Twelfth Federal
Reserve District, the telegram would advise that the State had been
placed in the Seattle Eranch territory.
Furthermore, since the
admission of Alaska to Statehood would render inappropriate certain
language in Regulations GI H, J, and U, Mr. Chase's memorandum
recommended that those regulations be amended in the necessary
respects and that the aforementioned telegram to the Federal Reserve
Banks advise of such amendments. It was noted that the placing of
Alaska in the Twelfth Federal Reserve District could be accomplished
Without prejudice to any final decision with respect to the need for
a new Federal Reserve district or to any subsequent readjustment of
districts.
Pursuant to these recommendations, it was agreed unanimously
to include the State of Alaska in the Twelfth Federal Reserve District
and in the territory of the Seattle Branch of the Federal Reserve
Bank of San Francisco, effective when the Statehood of Alaska became
effective.
It was also agreed to amend Regulations GI HI J
and u
in the necessary respects, effective the same date. The Secretary
llae authorized to send a telegram to the Federal Reserve 3aaks advising
aS25
-13-
12/18/58
of these actions upon learning that the President had signed a
proclamation making the Statehood of Alaska effective, and it was
understood that appropriate notices would be published in the
Federal Register at such time.
Secretary's Note:
On Saturday, January 3, 1959, the President of
the United States issued a proclamation admitting
Alaska to Statehood. Accordingly, on Monday,
January 5, 1959, the Secretary of the Board
sent to the Presidents of all Federal Reserve
Banks the telegram of which a copy is attached
as Item No. 9.
Designation of Guam (Item No. 10).
In July 1958, President
Mangels of the Federal Reserve Bank of San Francisco advised that a
member bank had suggested the designation of Guam as being in or of
the Twelfth Federal Reserve District for the purposes of Regulation
GI Collection of Noncash Items, and Regulation J, Check Clearing
and Collection.
Action by the Board on this request was deferred
in order to permit the matter to be explored by the Subcommittee
on Collections of the Presidents' Conference.
Since the Subcommittee
had now concurred in the recommendation, it was suggested in a
memorandum from Mr. Chase dated December 12, 1958, which had been
distributed to the Board, that this would appear to be an appropriate
time for the Board to make the designation.
A draft of letter to
the Federal Reserve Banks was submitted with the memorandum.
qt
39'r
-14-
12/18/58
Pursuant to the recommendation, it was agreed unanimously to
designate Guam as being in or of the Twelfth Federal Reserve District
for purposes of Regulations G and J, effective January 1, 1959, with
the understanding that the Federal Reserve Banks would be advised
of this action by letter and that an appropriate notice would be
published in the Federal Register.
A copy of the letter sent to the
Presidents of all Federal Reserve Banks on January
5, 1959, pursuant
to this action is attached as Item No. 10.
Discussion of proposed legislation.
With reference to the
discussion at this morning's session of the Board concerning views
that might be expressed to Chairman Spence of the House Banking and
Currency Committee with respect to the relative importance of
certain items of proposed legislation which might be considered by
the next Congress, Chairman Martin reported that he had talked with
Mr. Spence earlier this afternoon and that the views presented
appeared to have had a favorable reception.
The meeting then adjourned.
Secretary's Note:
Before leaving his office prior to the Board
meeting, Governor Shepardson approved on
behalf of the Board contemplated arrangements,
as set forth in a memorandum from the Division
of Examinations dated December 15, 1958, for a
System conference of trust examiners to be
held at the Federal Reserve Bank of New York
on February 12 and 13, 1959, immediately
following the Mid-Winter Trust Conference of
the American Bankers Association.
P
1
11
4
Secret
0
t11
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 1
12/18/58
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 18, 1958.
Board of Directors,
Central Trust Company,
Rochester, New York.
Gentlemen:
Pursuant to your request submitted through the
Federal Reserve Bank of New York, the Board of Governors
of the Federal Reserve System approves the establishment
of an out-of-town branch at 1451 Penfield Road, Panorama
Plaza Shopping Center (unincorporated area), Tool of
Penfield, l'ionroe County, New York, by Central Trust
Company, Rochester, New York, provided the branch is established within six months from the date of this letter
and the approval of the State authorities is in effect as
of the date of the establishment of the branch.
Very truly yours,
(Signed) Kenneth A. Kenyon
KennO,h i. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
7
:382
OF THE
FEDERAL RESERVE SYSTEM
Item No. 2
12/18/58
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 18, 1958.
Board of Directors,
The Morristown Trust Company,
Morristown, New Jersey.
Gentlemen:
Pursuant to your request submitted through the
of Governors of
Federal Reserve Bank of New York, the Board
ishment of
establ
the
the Federal Reserve System approves
County,
Morris
y
of
the following branches by Trust Compan
bank:
Morristown, New Jersey, the continuing
2 Waverly Place, Madison, New Jersey
228 Main Street, Madison, New Jersey
186 Ridgedale Avenue, Florham Park, New Jersey
Company,
incident to the merger of The Morristown Trust
Company,
Trust
and
Bank
Morristown, New Jersey, with First
Madison, N. J., Madison, New Jersey.
This consent is given provided:
y in
1. The merger is effected substantiall
dated
merger
of
ent
agreem
the
accordance with
October 23, 1958;
2.
Shares of stock acquired from dissenting sharefrom
holders are disposed of within six months
ition;
acquis
date of
3. The branches are established within six months
from the date of this letter;
4.
Formal approval of State authorities is obtained.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
3829
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No.
WASHINGTON 25, D. C.
12/18/58
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 18, 1958.
Board of Directors,
County Trust Company of Maryland,
Glen Burnie, Maryland.
Gentlemen':
Pursuant to your request submitted through the
Federal Reserve Bank of Richmond, the Board of Governors
of the Federal Reserve System approves the establishment
of a branch on the southeastern side of Shangrila Drive,
near its intersection with Great Mills Road, in the unincorporated community of Lexington Park, St. 1.iarys County,
Maryland, by County Trust Company of Maryland, provided the
branch is established within twelve months from the date of
this letter, and approval of the State authorities is
effective as of the date the branch is established.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
3
3S30
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 4
12/18/58
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 18, 1958.
Mr. L. G. Pondrom, lice President,
Federal Reserve Bank of Dallas,
Dallas 2, Texas.
Dear Mr. Pondrom:
Receipt is acknowledged of your letter of December 9, 1958,
regarding the effect of section 32 of the Banking Act of 1933 and
the Board's Regulation R on the service of Mr. Sidney A. Wooldridge
as a director of The First National Bank of Claude, Claude, Texas,
and as an employee of Rauscher, Pierce A Co., Inc., Dallas, Texas.
There seems to be no question but that Rauscher, Pierce
& Co., Inc. is "primarily engaged" in the business described in
section 32) and the only question appears to be whether the Board
of Governors could and should make an exception in the case of
Mr. Wooldridge. In this connection, you point out that the Bank
has been a family-owned institution throughout its existence and
is capably and conservatively managed by President B. C. Wooldridge,
the father of Mr. Sidney A. Wooldridge. President Wooldridge states
that he needs his son to fill out his Board and is quite certain
that the interlocking relationship would not be harmful.
The statute contains a general prohibition directed at a
type of relationship which had been found to be potentially dangerous,
and it allows the Board to make exception only "by general regulations".
In other words, as you know, the Board is not authorized to give a
Special dispensation or issue an individual permit. Therefore, since
Mr. Sidney A. Wooldridge's relationship appears to fall squarely
Within the description contained in the statute, and since there
would appear to be no way of amending the Board's regulation which
would not amount in effect to a repeal of the statute, there would
appear to be no way of relieving Mr. Sidney A. Wooldridge of the
necessity of severing his connection either with the bank or with
the firm.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
3
BOARD OF GOVERNORS
00{011
0
OF THE
c0601,:ci
VI
FEDERAL RESERVE SYSTEM
Item No.
WASHINGTON 25. D. C.
12/18/58
,o
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
ht. WO
December 18, 1958.
Board of Directors,
Southern Arizona Bank and Trust Company,
Southern Arizona Bank and Trust Building,
Tucson, Arizona.
Gentlemen:
Reference is made to the request contained in a
letter dated October 10, 1958, and to supplementary information contained in a letter dated November 25, 1958, to the
Federal Reserve Bank of Dallas for an extension of time in
which the Southern Arizona Bank and Trust Company may establish
a branch at the intersection of Rook and Speedway Avenues one
mile east of the corporate limits of Tucson, Arizona.
Establishment of this branch was originally approved
by the Board of Governors on November 30, 1956, provided the
branch was established within one year from date of that letter.
On October 23, 1957, the Board of Governors extended to November
30, 1958, the time within which applicant bank might establish
the branch.
It does not appear at this time that definite arrangements have progressed sufficiently to enable a reasonable approximation of the time that the branch might actually comence
operations. In view of the continuing indeterminable status of
the time element, the Board does not feel justified in further
extending the time within which this branch maybe established.
When the bank can approximate with some degree of accuracy a
probable starting date for operation of the branch, the Board
will be willing to consider an application for a branch in the
light of the circumstances at that time.
5
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
.
GUARD OF GOVERNORS
or THE
FEDERAL RESERVE SYSTEM
)ffice Correspondence
Board of Governors
1014_
Woodlief Thomas and Ralph Young
Date
Subject:
Item No.6
1.2/18/58
December 10, 3.958
Publication of Federal
Funds Study
We sent a memorandum to the Board on November 17 on two
matters relating to the study of Federal funds. On one of these
matters, the proposed collection of certain statistics, the Board
decided to defer its decision until after the proposal is discussed
further by the Presidents' Conference. Hence, no action was taken.
We wish to recommend that the Board now approve the other
of these matters, which related to the publishing of the initial
study of Federal funds transactions.
At the initiation of the Presidents' Conference a study of
the Federal funds market as undertaken some time ago by a group of
technicians from the Federal Reserve Banks and the Board's staff.
After the report had been considered by the Presidents' Conference
it was referred to the Board with the recommendation that it be revised for publication and general distribution. In a letter to the
Chairman of the Presidents' Conference dated May 29, 1958, the Board
agreed that an appropriately edited version should be published and
suggested that the established channel of the System Research Advisory
Committee should be employed to obtain professional review. Accordingly,
the document has since been reviewed by a committee composed of Mr. Roelse
of the New York Bank, Chairman, Mr. Donald Thompson of the Cleveland Bank,
and Mr. Albert Koch of the Board's staff, and has been revised by the
authors to conform with suggestions of the review committee.
The report is now in form for publication and provision for its
Publication has been made in the 1959 budget of the Division of
Administrative Services.
It is recommended:
(1) That the Division of Research and Statistics and the
Division of Administrative Services be authorized by the Board to
Proceed with the necessary arrangements for publishing 3,000 copies
of the study as a System book at an estimated printing cost of $2,500.
(2) That the same policy of complimentary distribution followed for other technical studies be adopted. This would provide
for furnishing the book on a complimentary basis to Federal Re89-rve Banks; Government departments, agencies and establishments
ir7 C
.
3833
To: Board of Governors
- 2
id=
(foreign and domestic) including central banks; librarians and teachers
at educational institutions; public libraries; the press; persons who
cooperated by supplying information for use in the study; and a limited
number of addressees specified by the Division of Research and Statistics.
(3) That the book be sold for $1.00 per copy and 85 cents
or more copies sent in one shipment.
10
each for
3836
BOARD OF GOVERNORS
OF THE
cistivta rt 1,
04.0
t,'5)
'
.f4
440
14
'
COP4
-•••••""••••.----,
Item No.
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
a
7
12/18/58
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
4?
December 18, 1958.
Confidential (FR)
Mr. H. J. Newman,
Vice President,
Federal Reserve Bank of Chicago,
Chicago 90, Illinois.
Dear Mr. Newman:
Reference is made to your letter of December 1, 1958,
in the
requesting the Board's approval of an upward adjustment
.
Branch
t
Detroi
the
to
able
applic
employees' salary structure
The Board approves the following minimum and maximum
of the
salaries for the respective grades for the Detroit Branch
y
5,
1959.
Januar
ve
be
effecti
to
o,
Chicag
of
Federal Reserve Bank
Grade
1
2
Minimum salary
$
2550
2765
3
4
5
6
7
8
3060
3445
3825
4250
4675
5100
9
10
11
12
5500
6000
0400
11
14
15
16
6900
7500
8loo
880o
9600
Maximum salary
$ 3450
3740
4140
4660
5175
5750
6325
6900
7500
8000
8700
9300
loloo
10900
12000
13100
salaries to the
The Board approves the payment of
specified for
limits
the
Employees, other than officers, within
383„:
Mr. H. J. Newman
the grades in which the positions of the respective employees
are classified. It is assumed 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
as soon as practicable and not later than April 1, 1959.
It has been noted that the cost of contemplated salaryincreases resulting from this increase in salary structure was
not provided for in the 1959 Detroit budget.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Ansistant Secretary.
3831;
BOARD OF GOVERNORS
or TOO
FEDERAL RESERVE SYSTEM
FINAL
Item No.
12/18/58
WAf-;OING ION
CERTIFICAT10 N
Pursuant to section 1101(e)(2) of the Internal Revenue
Code of
1954, the Foard of Governors of the Federal Reserve
System hereby certifies, to the best of its knowledge and belief,
that Transamerica Corporation, San francisco, California, which
formerly was a bank holding company as defined in section 2(a) of
the Dank Holding Company Act of 1956, has ceased to be a bank
holding company before the expirati.on of the period specified in
subparagraph (B) of section 1101(e)(2) of the Internal Revenue
Code of 1954.
Executed in WashinFton, D. C., pursuant to direction of
the Board of Governors of the Federal Reserve System.
(Signed) Merritt Sherman
Herritt Sherman,
Secretary.
Date: December 18, 1958
(SEAL)
8
3,
AM
TELEGR
LEASED WIRE
SERVICE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
January
Item No. 9
12/18/58
5, 1959
PRESIDENTS, ALL FEDERAL RESERVE BANKS
BOARD HAS TAKEN THE FOLLOWING ACTION:
"IN VIEW OF THE ADMISSION OF ALASKA TO STATEHOOD AS A RESULT OF
ISSUANCE OF THE PRESIDENT'S PROCLAMATION OF JANUARY 3, 1959
IN ACCORDANCE WITH THE PROVISIONS OF THE ACT OF JULY 7, 1958
(72 STAT. 339), AND, ACTING PURSUANT TO SECTION 19 OF THAT ACT,
THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM HAS READJUSTED THE FEDERAL RESERVE DISTRICTS SO PS TO INCLUDE THE STATE
OF ALASKA IN THE TgELFTH FEDERAL RESERVE DISTRICT, EFFECTIVE
JANUARY 3, 1959. WITHIN THAT DISTRICT THE STATE OF ALASKA
WILL BE INCLUDED IN THE BRANCH TERRITORY OF THE SEATTLE BRANCH
OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO."
SINCE THE ADMISSION OF ALASKA TO STATEHOOD HAS RENDERED
INAPPROPRIATE CERTAIN LANGUAGE IN THE BOARD'S REGULATIONS G, Hy
J, AND U, THE BOARD HAS ALSO ACTED TO AMEND THOSE REGULPTIONS IN
THE FOLLOWING RESPECTS, EFFECTIVE ON THE ABOVE DATE:
REGULATIIN 0 IS AMENDED BY ELIMMATING FROM FOOTNOTE I THEREOF
THE WORD "ALASKA,".
REGULATION H IS MENDED BY ELIMINATING FRnM FOOTUOTE 1 THEREOF
THE WORDS "TN ALASFA OR".
AM
TELEGR
SERVICE
LEASED WIRE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
PRESIDENTS, ALL
FEDERAL RESER7E BANKS
-2-
E 1 THEREOF
REGULATION J IS AMENDED BY ELIMINATING FROM FOOTNOT
THE WORD "ALASKA".
SUBSECTION
REGULATION U IS AMENDED BY CHANGING "48" TD "4941 IN
(i) OF SECTION 2 THEREOF.
(Signed) Merritt Sherman
SHERMAN
3839
BOARD OF GOVERNORS
tcwcitr**4.4
OF THE
FEDERAL RESERVE SYSTEM
4 It.
4%
Item No. 10
12/18/58
WASHINGTON 25, D. C.
4,14
ADDRESS OFFICIAL CORRESPONDENCE
*#
TO THE BOARD
*46
46.
January 5, 1959.
Dear Sir:
The Board has taken the following actions, effective January 1,
1959
DESIGNATION OF GUAM AS BEING IN OR OF THE
TWELFTH FEDERAL RESERVE DISTRICT FOR PURPOSES OF
REGULATION G
Pursuant to Footnote 1 of Regulation G, the Board of
Governors has taken the following action:
For purposes of Regulation G, Guam shall be deemed to be in
or of the Twelfth Federal Reserve District, effective on and after
January 1, 1959.
DESIGNATION OF GUAM AS BEING IN OR OF THE
TWELFTH FEDERAL RESERVE DISTRICT FOR PURPOSES OF
REGULATION J
Pursuant to Footnote 1 of Regulation J, the Board of
Governors has taken the following action:
For purposes of Regulation J, Guam Shall be deemed to be in
or of the Twelfth Federal Reserve District, effective on and after
January 1, 1959.
Very truly yours,
Merritt Sh
Secretary.
TO THE PRESIDENTS OF ALL FEDERAL RESERVE BANKS
@FedFRASER