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Minutes for
To:
From:
December 20, 1962
Members of the Board
Office of the Secretary
Attached is a copy of the minutes of the Board of Governors
or the Federal Reserve System on the above date.
It is proposed to place in the record of policy actions
„
ziequired to be kept under the provisions of section 10 of the
Reserve Act an entry covering the item in this set of
Ininutes commencing on the page and dealing with the subject
referred
to below:
Page
4
Revision of Regulation I, Issue and
Cancellation of Capital Stock of
Federal Reserve Banks.
Should you have any question with regard to the minutes,
w
it
n, ill be appreciated if you will advise the Secretary's Office.
;111:11erwise, please initial below. If you were present at the
:
ve tirig) Your initials will indicate approval of the minutes. If,
VA were not present, your initials will indicate only that you
cive seen the minutes.
Chin. Martin
Gov. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
Gov. King
Gov. Mitchell
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Federal Reserve Bank of St. Louis
Minutes of the Board of Governors of the Federal Reserve System
on Thursday, December 20, 1962.
The Board met in the Board Room at
10:00 a.m.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Martin, Chairman
Balderston, Vice Chairman
Mills
Robertson
Shepardson
King
Mitchell
Mr. Sherman, Secretary
Mr. Kenyon, Assistant Secretary
Mr. Young, Adviser to the Board and Director,
Division of International Finance
Mr. Cardon, Legislative Counsel
Mr. Fauver, Assistant to the Board
Mr. Hackley, General Counsel
Mr. Farrell, Director, Division of Bank
Operations
Mr. Solomon, Director, Division of Examinations
Mr. Johnson, Director, Division of Personnel
Administration
Mr. Connell, Controller
Mr. Shay, Assistant General Counsel
Mr. Hooff, Assistant General Counsel
Mr. Furth, Adviser, Division of International
Finance
Mr. Daniels, Assistant Director, Division of
Bank Operations
Mr. Kiley, Assistant Director, Division of
Bank Operations
Mr. Goodman, Assistant Director, Division of
Examinations
Mr. Smith, Assistant Director, Division of
Examinations
Mr. Leavitt, Assistant Director, Division of
Examinations
Mr. Sprecher, Assistant Director, Division of
Personnel Administration
Mr. Mattras, General Assistant, Office of the
Secretary
Mr. Bakke, Senior Attorney, Legal Division
Miss Hart, Senior Attorney, Legal Division
Mr. Doyle, Attorney, Legal Division
Mr. Poundstone, Review Examiner, Division of
Examinations
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Federal Reserve Bank of St. Louis
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Discount rates.
-2The establishment without change by the Federal
Reserve Bank of Kansas City on December 19, 1962, of the rates on
discounts and
advances in its existing schedule was approved unanimously,
with the understanding that appropriate advice would be sent to that
Bank.
Distributed items.
The following items, copies of which are
attached to these minutes under the respective item numbers indicated,
were
...2IRE1211 unanimously:
Item No.
Telegram
to the Federal Reserve Bank of
!
ew York interposing no objection to the
eurchase
Bank had of an IBM 1410 computer that the
been renting.
LQtf”
C
Lers to Bankers International Financing
c°
,
111PanY, Inc., Chase International Investment
trPoration, Chemical International Finance,
c d., and Morgan Guaranty International Finance
p:rPoration, New York, New York; First
a"
s Ylvania Overseas Finance Corporation
edPhiladelphia International Investment
e°rPo
ration, Philadelphia, Pennsylvania,
9:nding from December 31, 1962, to June 30,
1)
ae'J, the termination date of outstanding
general consents to purchase and hold stock in
nerally designated types of corporations.
1
2 - 7
C
Lett_
sa 7r to Bank of America National Trust and
8
auvl-ngs Association, San Francisco, California,
leth°rizing the establishment of branches at
1,7hTi°ns of the present branches of its
yorklY- owned subsidiary, Bank of America, New
Let,
ill-Ler to the Federal Reserve Bank of St. Louis
apterPosing no objection to the acquisition for
s4r()%imately $600,000 of a proposed building
fore for the Little Rock Branch (in substitution
1962 he site authorized to be acquired on July 27,
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Federal Reserve Bank of St. Louis
9
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-3Item No.
Letter to Bank of Tuscumbia, Tuscumbia,
kssouri, (1) interposing no objection to
the declaration of dividends in 1961 and
thus far in 1962 and, (2) approving the
declaration of a dividend in December 1962.
10
j
T legram to the Federal Reserve Bank of Kansas
f'tY interposing no objection to the acquisition
,°r aPProximately $229,000 of two lots adjacent
-1° Bank-owned property at the rear of the main
ad office
building for possible future
etPansion.
11
Lt"tter to all Reserve Bank Presidents regarding
elle Processing of bank merger and bank holding
Pany cases.
12
I
Year-end closing entries.
There had been distributed a memorandum
4cul the Division of Bank Operations dated December 18, 1962, in
el)nrlection with proposed year-end entries to profit and loss accounts
at the Federal Reserve Banks.
The reports received from the Banks
illdicated that no special charge-offs or other year-end adjustments
tequiring Board approval were contemplated.
about
Net earnings to the extent
$40.7 million were to be transferred to surplus to maintain
the surplus of each Reserve Bank at the level of subscribed capital
st°ek. Net deductions from current net earnings reflected mainly the
4'6 million loss from a Boston mail robbery and the $1 million charge-off
at
Atlanta incident to demolition of the original head office building,
44 authorized
by the Board on May 28, 1962.
There being no view to the contrary, it was understood that the
teQ
'Pe
ctive Reserve Banks would be advised by telegram that the Board
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Federal Reserve Bank of St. Louis
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had noted without objection the proposed 1962 year-end closing
e
ntries.
Application of Liberty Bankand Trust Company (Items 13, 14,
and
1
Pursuant to the decision reached at the meeting on December 12,
1962
Governor Robertson dissenting, there had been distributed a
Proposed order and statement reflecting the Board's approval of the
aPPlication of Liberty Bank and Trust Company, Buffalo, New York, to
merge
disse-
with The First National Bank of Batavia, Batavia, New York.
A
nting statement by Governor Robertson also had been distributed.
After discussion, the issuance of the order and statement was
ed, with the understanding that the wording of the statement
auth
4.°111-d be revised slightly in one respect.
Copies of the order,
zajo,4
'"-tY statement, and dissenting statement, as issued, are attached
to these minutes as Items 13, 14, and 15.
Miss Hart then withdrew from the meeting.
Regulation I (Item No. 16).
There had been distributed a
Illern(Yrandum from the Legal Division dated December 19, 1962, in connection
1/ith a
Proposed revision of Regulation I, Increase or Decrease of
Capital Stock of Federal Reserve Banks and Cancellation of Old and
Is
of New Stock Certificates, which had been authorized for
Plibl ication on December 7, 1962, for the receipt of comments.
(The
title of the revised Regulation would be Issue and Cancellation of
eaPir-al
Stock of Federal Reserve Banks.)
The memorandum noted that no
e%
fie
nts had been received with regard to the proposed revision and
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Federal Reserve Bank of St. Louis
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-5-
that none were expected prior to December 24, 1962, the final date for
receipt of
comments.
It was also pointed out that the revised Regulation
140111d have to be sent to the Federal Register in the near future if it
were to be included in Title 12 of the Code of Federal Regulations,
Ighich was being republished to include all regulations as of December 31,
1962,
After discussion, the Board agreed to a minor change suggested
by the Legal Division with respect to the issuance of a stock certificate
in
the case of a new national bank.
The proposed revision of Regulation I
'
1748 then approved unanimously, effective February 1, 1963, provided no
e°111ments or suggestions of significance were received by December 24,
1962,
Secretary's Note. No comments having
been received by the date prescribed,
the revised Regulation I was issued
effective February 1, 1963. A copy
of the revised Regulation, as published
in the Federal Register on December 29,
1962, is attached to these minutes as
Item No. 16.
Mr. Hooff then withdrew from the meeting.
Bank Service Cor oration Act and Bank Holdin
item No.
7.
Corn an
Act
There had been distributed a memorandum from the Legal
810n dated December 14, 1962, submitting a draft of an interpretation
otc
rfling the applicability of the Bank Service Corporation Act and
the tank Holding Company Act in certain situations.
The draft
inteqretation was prompted by informal inquiries received from the
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Federal Reserve Banks of Boston and Chicago with regard to certain
cases that arose in those Districts.
The Legal Division felt that the
Proposed interpretation would be of assistance not only in those two
situations
but also as a guide to others who might be giving consideration
to similar questions.
After discussion, the Board approved unanimously the proposed
illterpretation, with the understanding that it would be published in
he Federal Reserve Bulletin and the Federal Register.
A copy of the
inte
rpretation, as subsequently published in the Federal Register, is
attached to these minutes as Item No. 17.
Time deposits of foreign organizations (Item No. 18).
There
had been distributed a memorandum from Mr. Hackley dated December 18,
1962)
With
together with a memorandum from Mr. Doyle dated November 29, 1962,
regard to the question whether time deposits of certain organizations
were exempt from interest rate limitations.
The memorandum noted that
Ilublic Law 87-827, approved October 15, 1962, amended section 19 of
the ,
ederal Reserve Act to exempt from interest rate limitations the
time
deposits of "foreign governments, monetary and financial authorities
Of f
°reign governments when acting as such, or international financial
institutions of which the United States is a member".
Question had
been raised as to whether the exemption applied to time deposits of
the
High Authority of the European Coal and Steel Community and to
time
dePosits of the European Investment Bank. More recently a similar
question
had also been raised with regard to three subsidiary organizations
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Federal Reserve Bank of St. Louis
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-7-
'If the United Nations, namely:
the U. N. Special Fund, the U. N.
Technical Assistance Administration, and the U. N. Temporary Economic
Administration.
The request as to the U. N. Temporary Economic
Administration was subsequently withdrawn; the requests with regard to
he other two subsidiary organizations were still under consideration.
With regard to the European Coal and Steel Community,
Mr
Hackley's memorandum expressed the opinion, for reasons stated,
that its time deposits would not qualify for exemption under the statute,
and the same opinion was expressed with respect to time deposits of
the European Investment Bank.
Mr. Hackley stated in his memorandum
that the Treasury Department, the Federal Deposit Insurance Corporation,
and a
ttorneys for the Federal Reserve Bank of New York agreed with this
ec°mmendation.
However, Mr. Richard Simmons, of the New York law
of Cravath, Swaine & Moore, had expressed a desire to discuss the
4t4tua of the European Coal and Steel Community, and Mr. Hackley
l'ec'mmended that arrangements be made for him to meet with the Board's
taff.
This would limit Board action at present to the European
1111restment Bank.
In discussion, Governor Mitchell suggested that the problem
P°8ed by
the request of the European Investment Bank and similar
°I.gallizations might be substantially resolved if the Board were to
rats
e the interest limitation on time deposits with maturities up to
•
months. He inquired whether there appeared to be any important
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Federal Reserve Bank of St. Louis
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-8-
Public policy issue involved in maintaining the current interest
ceilings in this area.
Governor Balderston commented that the course of action
suggested by Governor Mitchell would fall short of the unlimited
interest rate privilege now enjoyed under the statute with respect to
certain foreign time deposits.
Therefore, it might not satisfy the
banks) even though it was understood that at present the banks were
Paying only slightly more than the Regulation Q maximum rates on
e3csmpted time deposits.
Governor Mitchell then added that the type of action he had
suggested was mentioned today simply to call attention to the possibility.
lie 140111d like to have a full discussion of the subject at some future
date.
Governor Mills said he would agree that a strict interpretation
°f the statute would lead to the action recommended by Mr. Hackley in
tesPect to the time deposits of organizations such as the European
Investment Bank and the European Coal and Steel Counaunity. At the same
time .
) in view of the functions of those organizations, as he understood
the
and
the
and as they were described in the memoranda from Messrs. Hackley
111°Yle; in view of the favorable interpretation made recently by
noard with respect to time deposits of the Bank for International
Settlements; and in view of the fact that the October 15, 1962, amendment
to
ection 19 of the Federal Reserve Act was limited to a three-year
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Federal Reserve Bank of St. Louis
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Period, he had some question whether such a strict interpretation of
the statute was entirely justified.
Mr. Hackley replied in terms that while the language of the
statute seemed relatively simple, although apparently not too carefully
drafted,
the question whether it covered certain types of organizations
was certainly debatable.
It could be argued from a reading of the law
that organizations such as the European Coal and Steel Community and
the
European Investment Bank were covered, as had been contended by
the law firm of Cravath, Swaine & Moore.
On the other hand, he had
been influenced by the feeling that some weight should be given to the
apparent intent of the Congress.
The bill had been sponsored principally
the Treasury Department, and he understood Mr. Roosa, Under Secretary
Monetary Affairs, felt strongly that organizations of this kind
811°111d not be covered because that would not be in accord with what he
had told the Congress during the hearings on the bill, namely, that
the exemption provided thereby would be limited to the time deposits of
ihatitutions such as foreign central banks and treasuries. Attorneys
for
the New York Reserve Bank, the Treasury, and the Federal Deposit
Insurance Corporation with whom Mr. Hackley had discussed the matter
all
agreed that the proposed interpretation would be a correct conclusion
-41 the
legislative point of view in light of the apparent intent of
the
statute.
After further discussion, the interpretation recommended by
HackleY with respect to time deposits of the European Investment
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Federal Reserve Bank of St. Louis
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-10-
tank was
approved unanimously, with the understanding that it would be
Published in the Federal
Register and the Federal Reserve Bulletin.
A
cs3PY of the interpretation, as subsequently published in the Federal
Register, is attached as Item No. 18.
It was understood that the
issuance of an interpretation with respect to the status of the
Eur°Pean Coal and Steel Community would be deferred until after the
8tsff meeting with Mr. Simmons and a subsequent final determination by
the Board.
Supervision and examination of Federal Reserve Banks.
had
been
There
distributed copies of a memorandum from Governor Robertson
(1":ed December 4, 1962, suggesting certain procedural changes that he
had co
ncluded would improve the portion of the Board's work relating to
the
supervision and examination of the Federal Reserve Banks.
The
suggested procedures would, in his view, fall within the statutory
Ptovie.
lon requiring the Board to arrange for an examination of each
Reserve
Bank at least once each year.
Briefly stated, the plan would
'age reducing the Board's field examining staff to six men, all .of
vhom
would be stationed in Washington. These men would design audit
COntrol and review programs
for their own use and for the purpose of
elle°uraging the use of uniform and high-quality standards throughout
the system.
Each examiner would be expected to maintain a continuous
150cedural
review of the audit work in the Reserve Banks assigned to
hie
Supervision through regular reports, supplemented by such surprise
visits
- to the Banks as he deemed necessary to enable him to prepare a
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Port of examination of the Banks and to satisfy himself and the Board
With
respect to the character, safety, and efficiency of each Bank's
°Psrations
and controls.
Among other things, he would be expected to
Prepare a report showing that he had checked the procedures used by the
internal auditors, such report to cover the operations of the Bank and
the manner in which each department was handled, with the examiner
required to do such spot-checking as might be necessary for this purpose.
In the event the examiners had doubts about the security or efficiency
°f auditing operations in any Reserve Bank, or deemed it advisable for
any
°n
other reasons, arrangements would be made for a full-scale examination
4
surprise basis, with the assistance of auditors borrowed from other
ileaerve Banks.
It was envisaged that there might be as many as four
such e
xaminations in one year, and perhaps one the next, depending on
devel°Pments.
In commenting on his memorandum, Governor Robertson suggested
that the Board be very careful in its analysis of the proposal.
cora„,
1tal'y convinced himself.
He had
However, in view of the differences of
0u that existed, he thought it would be wise for the Board, instead
Of t
-rYing
to discuss the plan today, to prepare for full discussion
later
He would suggest, therefore, that the Board's action today be
likit d
e- to requesting the various interested divisions of the Board's
"aff to submit memoranda outlining their
views for the Board's benefit.
He
14cluld also suggest that his memorandum be submitted for review to
°uteide a
uditors whose advice the Board might like to have, so that
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those auditors could be in position to confer with the Board at a later
date and give the Board the benefit of their views.
Governor Mills commented that when the memoranda referred to by
Governor Robertson were submitted, he would like to have them cover at
length the question of the Board's legal authority to abbreviate the
exa minations of the Federal Reserve Banks.
He would also like to have
°me discussion of the similarities and differences between directors'
eaminations of commercial banks, as conducted by public accountants,
and the work done through the internal audit systems of such institutions.
Re felt that this might shed some light on the question of relying on
internal auditing procedures at Federal Reserve Banks in substitution
f°1* the type of conventional examinations that the Congress possibly
had •
intended.
Governor Robertson expressed agreement that all facets of the
Problem should be considered, through such methods as the Board deemed
44T°Poriate.
Governor Mitchell then commented that during the recent meeting
Of
the Conference of Chairmen of the Federal Reserve Banks certain
re--r
"t'*t. ks had been made that expressed an attitude of caution about the
idea
of having the auditor of any Bank make very many administrative
tS
of the Bank's operations.
As Governor Mitchell read Governor
ober Son's
memorandum, he thought there was a little ambiguity in this
are
•
it
In his opinion the Board should take a clear position on whether
advocated use of the tool of administrative audits.
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Federal Reserve Bank of St. Louis
He had some
12/20/62
doubts
-13-
on that point.
He would have no objection to an auditor submitting
suggestions as they occurred to him in the normal course, but he doubted
whether the
auditor should have the main function of reviewing the
operating efficiency of the organization.
It was vitally important
that this be done, of course, and he felt that the Board should have
in its Division of Bank Operations a unit that would do a great deal
Of this and report its findings to the Board.
After additional discussion, Chairman Martin suggested adoption
Of the procedure suggested by Governor Robertson in preparation for
further consideration by the Board of Governor Robertson's memorandum.
The Chairman proposed, along these lines, that arrangements be made to
Obtain the views of the accounting firm of Haskins & Sells, with the
unde
rstanding that consideration could be given later to whether the
ce of other public accounting firms also should be obtained.
General agreement was expressed with such a procedure.
Messrs. Smith and Bakke then withdrew from the meeting.
Regulation K.
There had been distributed copies of a memorandum
from
— Governor Mitchell dated December 18, 1962, with reference to the
eltrrent review of Regulation K, Corporations Doing Foreign Banking or
0ther Foreign Financing under the Federal Reserve Act.
In his memorandum
C(3vernor Mitchell summarized what he considered to be the basic issues
illvolved in the study of the Regulation, concerning which other memoranda,
1:4epared by Mr. Goodman, had previously been distributed.
In general,
he regarded the Regulation as being too detailed and too confining,
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Federal Reserve Bank of St. Louis
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-14-
whi1e at the same time lacking in clear definition and statement of
Purpose.
With a view to relieving Edge Act corporations from undue
regulatory restraint, certain steps were proposed: the requirement for
prior approval of investments would be abolished, in lieu thereof, a
general policy position would be incorporated in the Regulation and
quarterly reports of portfolio actions would be filed; general consents
fc)r specific Edge Act corporations to make certain types of investments
'would be abolished, and such consents would be incorporated in the
Regulation to the extent that they should be retained; the restriction
against equity holdings would be drastically relaxed; and consideration
14°111d be given to merging the separate identities of the banking and
financing corporations.
Also, two competitive situations would be
clarified in the Regulation: the activities of Edge Act corporations in
Ilew York City would be permitted a somewhat broader scope; and, insofar
as
be
practicable, Edge Act corporations and branches of U. S. banks would
04
given
comparable powers.
In commenting on the memorandum, Governor Mitchell said it was
ended to present a general position that the Board might take.
14hi1e he
would not be too distressed if the Board should reject it, it
4PPeared to him that Regulation K should be modernized.
For some reason,
dg
e Act corporations had thus far performed a relatively minor function,
and he
_,
hao speculated as to why this might have been the case.
not sure.
He was
However, if the reason involved undue regulation of their
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activi
_,
ties he felt that the confining characteristics of the regulation
Ought to be
eased.
Governor Mitchell then reviewed the suggestions made in his
ttlic'tandum for steps that might be taken in the light of the general
11°1icY position that he had outlined.
In this connection, he noted
that he had suggested to Mr. Shay that the proposed Board regulation
concerning
powers
of overseas branches of U. S. banks be withheld from
kblication in the Federal Register for the receipt of comments until
the Regulation K matter could be discussed by the Board.
As he read
the proposed regulation concerning overseas branches was a little
kore
cellfining than the position suggested in his memorandum with respect
dge Act corporations.
In a concluding comment, Governor Mitchell said that he had
ilt°11ght the
matter before the Board in a form such as to identify the
IlsiticiPal issues with which he and the staff had been concerned in the
IlieW of Regulation K.
Before moving further, it would be desirable
t"lave the guidance of the Board.
When such guidance was obtained, he
felt that the review of the detailed provisions of the Regulation could
151.(3ceed
quite expeditiously.
In discussion based on Governor Mitchell's remarks, Governor Mills
'eated a
suggestion he had made previously that it would be helpful
the
Present language of Regulation K could be shown alongside a
draft that would implement changes such as Governor Mitchell
114d
ggested.
In other words, he felt it would facilitate an
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understanding of the matter if deletions and additions to the present
Regulation that would be necessary to accomplish such purposes could
be shown.
There being agreement with this suggestion, it was understood
that material of the kind described would be made available to the
Oa
It was also understood that publication of the proposed Board
regulation with respect to powers of foreign branches of U. S. banks
vould be deferred until such material had been made available and the
hoard had given further consideration to the study of Regulation K on
that basis.
All of the members of the staff except Messrs. Sherman, Kenyon,
lif4uver, Johnson, and Sprecher then withdrew from the meeting.
Director appointment.
On December 7, 1962, Mr. William H.
Ilsrrison, President, Taylor Drug Stores, Inc., Louisville, Kentucky,
advised
that he would be unable to accept reappointment as a director
°f the Louisville Branch, Federal Reserve Bank of St. Louis.
t
w's AZ.E
Accordingly,
.4 to ascertain through the Chairman of the St. Louis
Reserve Bank whether Mr. B. Hudson Milner, Executive Vice President
444 Treasurer, Louisville Gas & Electric Company, would accept appointment
if tendered as director of the Louisville Branch for the three-year
terra beginning January 1, 1963, with the understanding that if it were
48certained that Mr. Milner would accept, the appointment would be made.
It
Was also agreed that in the event of the unavailability of Mr. Milner,
ilar inquiry would be made with respect to Mr. Boyce F. Martin,
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P1 esident, Louisville Cement Company, Louisville, Kentucky, with the
appointment to be made if it were ascertained that he would accept such
appointment if tendered.
Secretary's Note: It was subsequently
ascertained that neither Mr. Milner nor
Mr. Martin would be available.
Mr. Fauver then withdrew from the meeting.
Officer salaries at Federal Reserve Banks (Items 19-30).
There
had been distributed to the Board copies of a memorandum from the
4v1sion of Personnel Administration dated December 13, 1962, regarding
requests by
the respective Federal Reserve Banks for approval of proposed
salaries for individual officers (other than the President and First
Vice President), effective January 1, 1963.
Except in certain instances
here particular review by the Board was suggested, as indicated in the
f°11wing paragraphs, the Division recommended that the proposed salaries
be approved.
At the Boston Bank, the Division noted that proposed increases
two officers (Jarvis M. Thayer and Eugene M. Tangney) were
classified by the Bank as adjustments incident to promotion, rather
than merit increases, although these two officers had been promoted,
with salary increases, in August 1962.
(Under the Board's guidelines
issued earlier this year,
merit increases were to be limited to 40
Per
Cent
of the officer staff of a Reserve Bank each year, but
Prom .
0t1011 increases were excluded from this limitation.
The limitation
Ve.8
raised to 45 per cent for 1963 proposals, after which the 40 per
---rait would obtain.)
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Federal Reserve Bank of St. Louis
The Personnel Division questioned the
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-18-
interpretation of the Boston Bank in respect to the cases of Messrs.
Thayer and Tangney.
In discussion of this question, it was noted that the promotions
of the two officers occurred prior to the time the Board's guidelines
were issued.
The Boston Bank had indicated that, if the guidelines had
been in effect at such time, more substantial increases might have been
Proposed for the two officers in connection with their promotion.
In
these circumstances, the view was expressed by members of the Board
that a degree of leniency was warranted.
Accordingly, it was agreed
that no exception would be taken to the salaries now proposed for the
two officers effective January 1, 1963, but that appropriate comment
wesuld be made in the letter to the Boston Bank advising of approval of
the
salaries proposed for members of its officer staff.
During the foregoing discussion, Governor Mills expressed
cel
'
tain general views with respect to the approach that in his opinion
should
be followed in considering proposed salaries for Reserve Bank
°fficers, within the framework of the policies recently decided upon
by the Board.
The Board's program, he noted, had been intended to
affOrd the directors of the Reserve Banks somewhat greater latitude for
the exercise of discretion in the area of salary administration.
4eviewing the salaries proposed for 1963 in that context, he could find
4°thing clearly out of line at any of the Banks.
He would be somewhat
cerned, he said, if the Board took up individual cases where there
1148 no serious inconsistency with the policies that had been outlined
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Federal Reserve Bank of St. Louis
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earlier by the Board.
-19If he had any general impression in reviewing
the current proposals, it was that too much attention was being paid
to increasing the salaries of officers in the top groups, with a
tendency
to overlook officers in the lower brackets, whose salaries
did not appear to move up too far or too fast.
Governor Balderston raised the question whether the Board
should reconsider the possibility of establishing a single limitation
that would be applicable both to merit and promotion increases.
He
noted that this would appear in line with the general philosophy of
Providing greater latitude to the Reserve Bank directors and that it
14°111d make for simplicity of administration.
Also, he felt that
Problems might arise over a period of time in attempting to distinguish
bet
lgeen merit and promotion increases.
It was the consensus that the problem mentioned by Governor
Ilal derston should be kept in mind, but that it might be well to defer
"
e sideration of any possible change in the guidelines until developments
ee'uld be reviewed in the light of experience.
The view was expressed
that the problem might not become severe, and it was noted that thus
far the general reaction to the Board's program appeared to be favorable.
At the New York Bank, the Personnel Division's memorandum
Pointed out that salary increases were proposed for four officers who
I'le'te scheduled to retire during 1963.
A review of increases proposed
4Uri
-4g the past five years by Reserve Banks showed that relatively few
J ustments had been proposed as of the first of any year for officers who
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Federal Reserve Bank of St. Louis
12/20/62
-20-
were to retire that year.
It was also noted that following initial
review of increases proposed for three Vice Presidents of the Chicago
Reserve Bank for 1955, the Board indicated to the Bank that it was not
inclined to approve the proposed increases because the officers "will
reach retirement age during the coming calendar year 1955 and all have
had increases in recent years."
When the Chicago directors protested
any implication that the approaching retirement dates had been given
uhdue consideration in fixing the proposed salaries, the Board reconsidered
and subsequently approved an increase for one of the Vice Presidents in
question but not for the other two officers.
The Personnel Division
suggested that the Board review the general problem involved in light
°f the current proposals of the New York Bank.
Governor Mitchell, Chairman of the Board's Committee on
Nanization, Compensation, and Building Plans, recalled that the
Pl.°Posed increases for the four officers who were to retire in 1963 had
been discussed by President Hayes with the Committee.
Mr. Hayes stated
that the
New York Bank had not followed a practice of refraining from
131.°P"ing salary increases for officers who were to retire during the
"suing year, he recalled that in some cases the Bank had proposed such
increases
and the Board had approved.
However, if the Board was not
disPosed to approve the proposed salaries of the four officers in
questi", the New York Bank would propose in the alternative salary
Increases for certain other officers.
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Federal Reserve Bank of St. Louis
12/20/62
-21-
Governor Mitchell noted that, according to the record, during
the past five years the Reserve Banks had proposed, and received
approval of, increases for 13 of a total of 66 officers who were going
to retire within a year.
It was his understanding that most of the
Reserve Banks normally refrained from proposing salary increases in
such circumstances.
However, it was not clear whether or not the Board
had felt that any policy existed in this regard.
For the future, he
suggested that the Board might want to make clear whether it considered
the fact that an officer was to retire within the year constituted a
restriction on proposing a salary adjustment for him.
As to the
Proposals for 1963, some consideration might be given to the fact that
the officer salary structures at the Reserve Banks had been adjusted
uP/44rd, with the Board's approval, effective in 1963.
In further comments, Governor Mitchell said he was inclined to
believe that the Board should express a general position, and that this
Pcisition should be against granting salary increases in the year of
ret
irement.
However, he was not prepared to press strongly for the
1
4PP ioability of such a position to the current New York proposals,
P4rticular1y on the ground that there may have been some misunderstanding.
Be
noted that one of the cases involved an officer (Vice President and
Se„J
Or Adviser Robert G. Rouse) whose salary could not have been increased
elteePt for the adjustment in the officer salary structure at the New
.°1'k Bank.
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Federal Reserve Bank of St. Louis
12/20/62
-22-
Governor King suggested that even if the Board did not take a
definite position the Reserve Banks might be deterred from proposing
increases for officers about to retire in view of the 40 per cent
limitation that would be imposed on the number of salary increases.
.1131' that reason, he doubted whether it was necessary to make a general
de
termination of the problem, and he questioned setting up any arbitrary
rule.
In the current circumstances, he would approve the proposed
salaries for the four officers of the New York Bank.
Governor Mills stated that if the 1955 Chicago case were before
the Board at this time he would be inclined to accept the salaries
Pt0Posed by the directors in the exercise of their discretion.
Governor Balderston expressed the view that in principle it did
riot
look too well for the salaries of Reserve Bank officers to be
increased in the final year of service.
He noted that, among other
c°11siderations, an effect on the level of retirement compensation was
11117c4ved.
In the present case, however, a change had been approved in
slew York Bank's salary structure for officers.
the'
Had it not been
this change, the salary of Mr. Rouse could not have been increased.
Governor Shepardson inquired whether, if the increased salaries
f°t the four New York officers were approved, that action should be
.
tegardea
as an exception to a general position against granting increases
vithin the final year of service.
It was his understanding that in
Ptinciple the Board had not favored such increases.
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Federal Reserve Bank of St. Louis
12/20/62
-23-
Governor Robertson commented that if it were not for the policies
in the area of salary administration for Reserve Bank officers that the
Board had adopted recently, he would have been inclined to turn down
the New York proposals.
the
However, the recently adopted policies were in
direction of giving the boards of directors of the Federal Reserve
Banks greater discretion in the establishment of salaries, within a
.
limitation
on the number of officers whose salaries could be increased
each year.
On that ground, he would raise no objection to the proposed
increases for the four New York officers.
Chairman Martin then suggested that the Board approve the
Proposed salaries, with a statement in its letter to the New York Bank
that generally speaking the Board did not look with favor on the granting
Of salary increases to officers who were to retire within the year that
the increase became effective.
There was general agreement with this
suggested procedure.
The Personnel Division, in its memorandum, had also raised a
question about the $3,000 merit increases that were proposed for two
rve Bank officers (Vice President Charles E. Coombs of New York
"Ind Vice President Ernest T. Baughman of Chicago) in view of the fact
that under the Board's current program increases for First Vice
l'residents were limited to $2,500.
In discussion, Chairman Martin indicated that he would not be
incl.
lned to interpose objection to these two proposed increases, on
th
e basis that in dealing with persons in top positions it was often
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Federal Reserve Bank of St. Louis
12/20/62
-24-
necessary to make substantial salary adjustments and the Reserve Banks
should have considerable leeway in that regard.
There was no indication
Of disagreement with the Chairman's comments.
The Board also noted without objection that an increase of
$1,500 was being proposed by the Cleveland Reserve Bank for Special
EC Onomist
Addison T. Cutler, this proposal having been mentioned for
the Board's consideration by the Personnel Division because of certain
questions that had been raised at an earlier date.
There had also been distributed to the Board a memorandum from
the Division of Personnel Administration dated December 18, 1962,
regarding revised salary proposals submitted by the Cleveland Reserve
'lank incident to the promotion of Fred S. Kelly from Assistant Vice
President to Vice President and the appointment of William Hendricks
and Lester M. Selby as Assistant Cashier and Assistant Secretary,
res
pectively.
After discussion, it was indicated that there would be no
ob.
jection to the proposed salaries in these cases.
The Board then approved unanimously the proposed salaries for
Res
rve Bank officers effective January 1, 1963, as set forth in the
°randum from the Division of Personnel Administration dated
bece
muer 13, 1962, supplemented by the memorandum of December 18, 1962,
sub.
Ject to the understandings mentioned previously with regard to the
11C 1
"sLon of certain comments in the letters to be sent to the Boston
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Federal Reserve Bank of St. Louis
r
12/20/62
-25-
and New York Banks.
Copies of the letters sent to the respective Banks
Pursuant to this action are attached as Items 19 through 30.
Messrs. Johnson and Sprecher then withdrew from the meeting.
In the discussion that followed, it was noted that Chairman
liartin and Governors Mills and Robertson intended to meet tomorrow at
11:30 a.m. with Mr. John MacArthur, Chairman of the Board of Citizens
11/ank & Trust Company, Park Ridge, Illinois, in consequence of
14r. MacArthur's expressed desire to discuss developments in connection
with that banks
, so-called United Security Account plan.
Governor
tchell advised the Board of his intention to attend the Conference
°4 Inflation and Growth to be held in Rio de Janeiro, Brazil, in early
Jan
uary 1963.
Governor Mitchell also reported advice from the Jewel
Tea Company, Chicago, Illinois, that it had not been necessary for the
e°mPany to put into operation a plan that it had considered earlier
the use of scrip during the pre-Christmas season due to the coin
8uPPlY shortage.
Governor Mitchell further advised that in a recent
e°11versation with Mr. Max Ikle of the Swiss National Bank, Mr. Ikle
indicated that the bank probably would not be inclined to permit the
St
if
National City Bank of New York to open its proposed Geneva branch
any agency of another government retained the right to examine the
(This matter had been the subject of correspondence between
the Board and the Swiss National Bank, and the National Bank had also
t'equested that an indication of the position of the Comptroller of the
eul
'I'ency be made available to it.)
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Federal Reserve Bank of St. Louis
12/20/62
-26-
The meeting then adjourned.
Secretary's Notes: Pursuant to the
recommendation contained in a memorandum
from the Division of International
Finance, Governor Shepardson today
approved on behalf of the Board an
increase in the salary of Yves Maroni
from $14,545 to $15,045 per annum, with
a change in title from Economist to
Senior Economist in that Division,
effective January 6, 1963.
Pursuant to recommendations contained
in memoranda from the Division of
Administrative Services, Governor Mills,
acting in the absence of Governor
Shepardson, approved today on behalf
of the Board increases in the basic
annual salaries of the following persons
in that Division, effective December 23,
1962:
From
Alfred J. Holston, Clerk
M. Reeder, Digital Computer Systems
Operator (Trainee)
(Change in title from Operator,
Tabulating Equipment)
114Y
$3,770
4,135
Seceet
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Federal Reserve Bank of St. Louis
To
$4,030
4,390
9";
TELEGRAM
LEASED WIRE SERVICE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
Item No. 1
12/20/62
December 20 1962.
Rot
.es - New York
Board interposes no objection to purchase of 1410 computer
telrred to in urlet December 10.
(Signed) Merritt Sherman
SHERMAN'
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Federal Reserve Bank of St. Louis
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 2
12/20/21
WASHINGTON 25. D. C.
ADDRESS orrectAL CORRESPONDENCE
TO THE SOAR()
December 21, 1962
Bankers International Financing Company, Inc.,
16 Vail Street,
New York 15, New York.
Gentlemen:
Reference is made to the Board's letter of May 30
1962, granting consent to Bankers International Financing
Company, Inc. to purchase and hold stock in generally designated types of corporations, subject to the conditions therein
contained. By the terms of the general consent, this authorization is applicable only to investments made on or before
December 31, 1962.
As you know, a comprehensive review of Regulation K
has been in process during the past year, and, pending the
completion of the review, the outstanding consents will be
extended for a period of six months, Accordingly, the termination date contained in the Board's letter of May 3, 19620
is hereby extended to June 30, 1963.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
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Federal Reserve Bank of St. Louis
BOARD OF GOVERNORS
OF THE
Item No.
FEDERAL RESERVE SYSTEM
12/20/62
3
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 21, 1962
Chase International Investment Corporation,
1 Chase Manhattan Plaza,
New York 5, New York.
Gentlemen:
Reference is made to your letter of October 8,
1962, regarding the Board's letter of January 20, 1960,
granting general consent to Chase International Investment
Corporation and Arcturus Investment & Development, Ltd.,
Montreal,. Canada, your wholly-owned subsidiary, to purchase
and hold stock in generally designated types of corporations,
subject to the conditions therein contained.
By the terms of the general consent, as extended,
this authorization is applicable only to investments made on
or before December 31, 1962, and you have requested that the
termination date'be extended to December 31, 1963, subject
to the same conditions.
As you know, a comprehensive review of Regulation K
has been in process during the past year, and, pending the
completion of the review, the outstanding consents will be
extended for a period of six months. Accordingly, the .
termination date contained in the Board's letter of January 20,
1960, is hereby extended to June 30, 1963.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
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Federal Reserve Bank of St. Louis
BOARD OF GOVERNORS
oft**
it
Item No. 4
12/20/62
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
4tt
TO THE BOARD
400
December 211 1962
Chemical International Finance, Ltd.,
20 Pine Street,
New York 15, New York.
Gentlemen:
Reference is made to your letter of November 14,
1962, regarding the Board's letter of January 20, 1960
granting general consent to Chemical International Finance,
Ltd., and Chemical Overseas Finance Corporation, your whollyowned subsidiary, to purchase and hold stock in generally
designated types of corporations, subject to the conditions
therein contained.
By the terms of the general consent, as extended,
this authorization is applicable only to investments made on
Or' before December 31, 1962, and you have requested that the
termination date be extended one year.
As you know, a comprehensive review of Regulation
X has been in process during the past year, and pending the
comPletion of the review, the outstanding consents will be
extended for a period of six months. Accordingly, the termination date contained in the Board's letter of January 20, 1960
is hereby extended to June 30, 1963.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
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Federal Reserve Bank of St. Louis
(
A
4,..:W7
BOARD OF GOVERNORS
Item No.
12/20/62
OF THE
FEDERAL RESERVE SYSTEM
5
WASHINGTON 25, D. C.
ADDRE195 OFFICIAL. CORRESPONDENCE
TO THE BOARD
December 21, 1962
Morgan Guaranty International
Finance Corporation,
23 Wall Street,
New York 8, New York.
Gentlemen:
Reference is made to the Board's letter of May 41
1960 granting general consent to Morgan Guaranty International
Finance Corporation to purchase and hold stock in generally
designated types of corporations, subject to the conditions
therein contained. By the terms of the general consent, as
extended, this authorization is applicable only to investments
made on or before December 31, 1962.
As you know, a comprehensive review of Regulation K
has been in process during the past year, and, pending completion of the review, the outstanding consents will be extended
for a period of six months. Accordingly, the termination date
contained in the Board's letter of May 4, 1960 is hereby extended to June 30, 1963.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
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Federal Reserve Bank of St. Louis
BOARD OF GOVERNORS
Item No. 6
OF THE
12/20/62
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO TNE BOARD
December 21, 1962
Corporation,
First Pennsylvania Overseas Finance
Packard Building,
15th and Chestnut Streets,
Philadelphia, Pennsylvania.
Gentlemen:
r of
Reference is made to the Board's lette
ia
ylvan
Penns
First
to
nt
conse
May 91 1962 granting
se and hold stock
Overseas Finance Corporation to purcha
rations, subject
corpo
of
types
in generally designated
of
to the conditions therein contained. By the terms
cable
appli
is
ion
rizat
autho
the general consent, this
only to investments made on or before December 31, 1962.
aAs you know, a comprehensive review of Regul
and,
tion K has been in process during the past year,
consents
g
andin
outst
the
w,
revie
the
of
etion
pending compl
will be extended for a period of six months. Accordingly,
the termination date contained in the Board's letter of
May 3, 1962 is hereby extended to June 30, 1963.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
1962.)
(Date in last line should have read May 9,
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Federal Reserve Bank of St. Louis
4 A,
SOARD OF GOVERNORS
Item No.
OF THE
7
12/20/62
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 210 1962
Philadelphia International
investment Corporation,
Broad and Chestnut Streets,
Philadelphia, Pennsylvania.
Gentlemen:
Reference is made to the Board's letter of
April 25, 1961 granting general consent to Philadelphia
International Investment Corporation (as amended by the
Board's letter of May 2, 1962 to include New World Development Corporation Limited, your wholly-owned subsidiary
formed under the laws of the Bahamas) to purchase and hold
stock in generally designated types of corporations, subject to the conditions therein contained. By the terms of
the general consent, as extended, this authorization is
applicable only to investments made on or before December
31, 1962.
As you know, a comprehensive review of Regulation
K has been in process during the past year, and, pending the
completion of the review, the outstanding consents will be
extended for a period of six months. Accordingly., the termination date contained in the Board's letter of April 25, 1961
is hereby extended to June 30, 1963.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
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Federal Reserve Bank of St. Louis
BOARD OF GOVERNORS
Item No.
OF THE
8
12/20/62
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
AOORIESIB
*
arrictAL
CORRCESPONOCNOC
TO THC •OATO
December 20, 1962
AIR MAIL
Bank of America National Trust
and Savings Association,
aan Francisco 20, California.
G
entlemen:
l Reserve System
The Board of Governors of the Federa
authorizes Bank of America National Trust and Savings Association,
of the
F a Francisco, pursuant to the provisions of Section 25
at the following locations*
ederal Reserve Act, to establish branches
28 Place Vendome,
Paris,
France.
2A Queen's Road Central,
Hong Kong,
Colony of Hong Kong.
Koenigsallee 33,
Duesseldorf,
Germany.
Rue Riad Solh,
Beirut,
Lebanon.
5 Avenida 11-16
Guatemala City,
Guatemala.
2 Weld Road,
Kuala Lumpur,
Federation of Malaya.
7th Avenue #7-34,
Guatemala City,
Guatemala.
31 Raffles Place,
Singapore,
Colony of Singapore.
the provisions
and to operate and maintain each such branch subject to
°f such Section.
established and opened
Unless each such branch is actually
authority hereby
for
business on or before December 1, 1963, the
granted will automatically terminate on that date.
the
your plan to convert
The foregoing authorization relates to
subsidiary, Bank of America,
Present branches of your wholly owned
York, to branches of Bank of America NT&SA.
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Federal Reserve Bank of St. Louis
E SYSTEM
BOARD OF GOVERNORS OF THE FEDERAL RESERV
aallit of America NT&SA
— 2—
of November 14, 1962,
It is understood from your letter
the
plished by the assump=
accom
t the transfer of each branch will be
ti
lities of that branch,
liabi
.°A, by Bank of America NT&SA, of all the
ion for the transfer
derat
consi
7ccauding some unknown liabilities, in
business and assets
the
America, New York, of the whole of
ank
that branch to Bank of America NT&SA.
writing, through
e advise the Board of Governors, in
Pleas
of the
. the Federal Reserve Bank of San Francisco, when the branches
information as to
,!tional bank are opened for business, furnishing
'44e exact location of each such branch.
V
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
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Federal Reserve Bank of St. Louis
BOARD OF GOVERNORS
Item No. 9
OF THE
12/20/62
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDREBEI
arr
CIAL CORREOPONDENCE
TO THE BOARD
December 20, 1962
4
.
Harry A. Shuford, President,
t,11'•cler31
of St. Louis,
Reserve Bank
Box 442
St• r—lia
—A
66,1 Missouri.
la Etr Mr. Shuford:
This refers to the proposed purchase of a building ,
Bite for the Little Rock Branch, as described in your letter of
14/ecember 14, 1962. It is noted that this proposal is in
44stitution for a previously proposed purchase, which was
NPProved by the Board on JulY 270
The Board will interpose no objection to your Bank's
equisition of the proposed property and authorizes its purchase
, 4 cost of approximately $600,000 (including a $25,000 realtor's
•
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
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Federal Reserve Bank of St. Louis
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 10
12/20/62
WASHINGTON 25, O. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 20, 1962
80ard of Directors,
Bank of Tuscumbia,
Tuscumbia, Missouri.
Gentlemen:
The Board of Governors has received from Mr. 0. 0. WYrick,
Vice President of the Federal Reserve Bank of St. Louis, a copy of
letter dated December 5, 1962, from Mr. Byron H. lax, Cashier of
'he Bank of Tuscumbia, requesting approval, pursuant to the
re quirements of paragraph 6, Section 9 of the Yederal Reserve Act
,
'fld Section 5199(b), United States Revised Statutes, of a dividend
°f $6,900 declared and paid in 1961 and a dividend of $1,500
Ieclared and paid in 1962, and also permission for the declaration
'
(4 a dividend of $5,400 in December 1962.
The Board has given careful consideration to the facts
will make no objection to the declaration of the dividends of
Z,3900 in 1961 and $1,500 thus far in 1962. The Board also approves
,ue declaration of a dividend of $5,400 in December 1962. This letter
tDes not authorize any other declaration cf dividends in 1962 or later.
'
:V
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
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Federal Reserve Bank of St. Louis
TELEGRAM
SERVICE
LEASED WIRE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
Item No. 11
12/20/62
December 20) 1962
Clay - Kansas City
Reurlet December 13, 1962, Board will interpose no
Objection to your Bank's purchase of real estate
described therein at price of $229,000 plus normal
Closing costs and expenses.
(Signed) Merritt Sherman
SHERMAN
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Federal Reserve Bank of St. Louis
BOARD OF GOVERNORS
OFTHE
FEDERAL RESERVE SYSTEM
Item No. 12
12/20/62
WASHINGTON
.4
<Q,
ALREs$
OFFICE OF THE CHAIRMAN
December 20, 1962.
To THE PRESIDENTS OF ALL FEDERAL RESERVE BANKS
Dear Sir:
In light of experience gained to date, the Board has
recently been giving renewed consideration to the problem of
racilitating decisions on bank merger and holding company cases,
/Pile at the same time acting against the background of the best
actual and analytical material that can be assembled, In try!jig to achieve this objective, the Board contemplates placing
ivn_creased reliance on the facilities of the Reserve Banks, and
,r Purpose of this letter is to offer several suggestions toward
'ills end
First, a Reserve Bank's memorandum to the Board on a
merger or holding company case obviously should be forwarded as
rIlar°mPtly as practicable. It would be most helpful if such
.:moranda normally could be received within 30 days from the date
'
tik e request reaches the Reserve Bank, and those involving even
kge most complicated and difficult cases should, if possible,
be
received within about 60 days, and preferably within 45.
Second, such memoranda should be arranged according to
a reasonably standardized format, having in mind formats suggested by the Board's Division of Examinations.
Third, each Reserve Bank should take whatever steps
are
, necessary to assure not only the identification of data as
r-1
at 'ate and source but also the maintenance of the highest
andards
of accuracy
Fourth, the memoranda should be thorough and complete
in s
etting forth the facts and analyses that support the recom"ciation of the Reserve Bank and, in addition, should present
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Federal Reserve Bank of St. Louis
L*
4!
-2c°14Prehensively those factors that might argue in favor of an opposite
t
eonclusion
It might be helpful, in this respect, to compare the
°4rd'8 published statements on merger and holding company cases with
orresponding memoranda that have been prepared for the Board's use
reaching its decision
Both should be accurate and factual, and
b0th
However, the published statement
should reach a conclusion
C.Ist necessarily emphasize those aspects that tend to support the de,
lslon reached by the Board, while the internal memoranda must set
Lec)rth and analyze the facts and arguments, both pro and con, more
eXtensively and critically. Your Bank has been furnished copies of
1„ertain internal memoranda prepared by the Division of Examinations that
"elP to illustrate this point
Fifth, the Reserve Bank memoranda should be as objective as
in analyzing and evaluating different points of view. It is
:ssential that material in applications be studied, evaluated, and
„uPPlemented where appropriate in light of (a) the applicant's natural
idency to present the best possible case for approval, even though
aile
d questions in the Application Form attempt to elicit both favorable
la unfavorable information; and (b) the strong emphasis in the legiscotive history on the special importance attached by Congress to
itlitsiderations affecting competition, concentration, and the public
asuerest. It is worth noting that Reserve Bank memoranda submitted to
illslst the Board in reporting to other agencies on competitive factors
t,merger cases have seemed in general to be somewhat more objective
ar,"n memoranda submitted in connection with applications requiring Board
vProval or denial
P0
W
In dealing with these complex matters, the Reserve Banks may
—
tlnd it helpful, as has the Board, to get the benefit of the
fu erent viewpoints represented by the examining, research, and legal
nctions,
tari,_
At the risk of repetition, I would like to stress the imporfac
attached by the Board to the objective of expediting and
casllitatin g the disposition of bank merger and bank holding company
or es. Steps to strengthen resources and procedures within the Board's
Rernization have been initiated, and the Board suggests that the
abi rve Banks use whatever means are necessary to assure the availassi itY of skilled personnel in sufficient quantity for maximum
-stance to the Board in this responsibility.
Sincerely yours,
Wm. McC. Martin, Jr.
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Federal Reserve Bank of St. Louis
Item No. 13
12/20/62
UNITED STATES OF AMERICA
BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D. C.
Imo
111 the Matter of the Application of
L113E11117 BANK AND TRUST COMPAITY
aPproval of merger with
'
4e First National Bank of Batavia
--
-
ORDER APPROVING MERGER OF BANKS
There has come before the Board of Governors, pursuant to
Bank Merger Act of 1960 (12 U.S.C. 1828(c)), an application by
4bertY Bank and Trust Company, Buffalo, New York, for the Board's prior
c'vva,a of the merger of that bank and The First National Bank of
114atalpi
former.
—a, Batavia, New York, under the charter and title of the
Aa an incident to the merger, the main and only office of the latter
baam,
would be operated as a branch of the former bank.
Notice of the
Aroy,
v°0ed merger, in form approved by the Board, has been published
1411-uant to said Act.
the light of
Upon consideration of all relevant material in
the
furnished by the
taetors set forth in said Act, including reports
Co 4.nh,
-vi'roller of the Currency, the Federal Deposit Insurance Corporation,
44.d.
the Department of Justice on the competitive factors involved in
the
Draposed merger
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Federal Reserve Bank of St. Louis
(
IT IS HEREBY ORDERED, for the reasons set forth in the
trdt
8 Statement of this date, that said application be and hereby is
l'oved, provided that said merger shall not be consummated (a) within
calendar days after the date of this Order or (b) later than
thre
e months after said date.
Dated at Washington, D. C., this 20th day of December, 1962.
By order of the Board of Governors.
Voting for this action: Chairman Martin, and
Governors Balderston, Fills, and Shepardson.
Voting against this action:
Absent and not voting:
Governor Robertson.
Governors King and Mitchell.
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
'(a7.CAT..4)
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Federal Reserve Bank of St. Louis
Item No. 14
12/20/62
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
APPLICATION BY LIBERTY BATIK AND TRUST COMPANY
FOR APPROVAL OF MERGER WITH
THE FIRST NATIONAL BANK OF BriTAVIA
STATE:IENT
The Liberty Bank and Trust Company, Buffalo, New York
(I'Libertytt), with deposits of $222.14 million,* has applied, pursuant
t() the Bank Merger Act of 1960 (12 U.S.C. 1d28(c)), for the Board's
approval of the merger of that bank and The First National Bank
Of
Batavia, Batavia, New York ("First"), with deposits of $14.5 million.
bank
--s would merge under the charter and title of Liberty, which is
4 hat
--e-chartered member bank of the Federal Reserve System. As an
'uent to the merger, the sole office of First would become a branch
°t th
e resulting bank, increasing the number of its offices from 28 to 29.
Under the law, the Board is reuired to consider, as to each
(It the
banks involved, (1) its financial history and condition, (2) the
11
acY of its capital structure, (3) its future earnings prospects,
th
(4)
e general character of its management, (5) whether its corporate
N
Nier
8
are consistent with the purposes of the Federal Deposit Insurance
Att
1 (6) the convenience and needs of the community to be served, and
(?)
the effect of the transaction on competition (including any tendency
o8it and loan figures are as of June 30, 1962.
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Federal Reserve Bank of St. Louis
ard monopoly).
The Board may not approve the request unless, after
e°118idering all these factors, it finds the transaction to be in the
PlIblic interest.
Banking factors. - The capital structure and condition of both
14bertY and First, and the financial history of First are regarded as
generall7 satisfactory.
Until recent years, the rate of growth of
4bertY lagged behind that of the two larger Buffalo banks, Marine Trust
eQ111PanY of Western New York ("Aarine"), with deposits of $800.8 million,
"Manufacturers and Traders Trust Company ("anufacturers"), with
d
-osits of $515.0 million. Marine is a subsidiary of Marine Midland
C°113oration, a bank holding co,apany which operates banking offices in
11 nine banking districts in New York.
While Marine and Manufacturers
establishing branches or merging with small independent banks in
(14°c1 locations, Liberty remained static, with many of its in-town
brari
cues located in areas which are deteriorating or where economic
grcNth has
ceased.
Liberty has recently developed a program designed to acquire
4Poei+
-vs, add banking facilities, modernize and relocate existing
orri,
'
es, and improve customer relations. Three new branches have been
--sued in expanding suburban areas, and five other branches have
been
acquired by mergers with four relatively small banks in Fredonia
th
a branch at Erocton), East Aurora, Oakfield, and Orchard Park.
Prospects for earnings of Liberty and for First are satisfactory,
441 the
Prospects for the resulting bank should be equally so. There is
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Federal Reserve Bank of St. Louis
-311O evidence that the corporate powers of the banks are, or would be,
itlec)nsistent with the Federal Deposit Insurance Act.
In this case, the circumstances relating to the banking
actors are largely neutral.
While the capital structure, anticipated
411ancial condition and history, future earnings prospects, management,
lict exercise of corporate powers of the resulting bank would continue
to
satisfactory, it seems probable that these circumstances would
relllain almost equally satisfactory in respect to each were the applicati°/1 to be
denied.
Convenience and needs of the communities to be served. - Buffalo
lathe second largest city in New York State and 15th largest in the United
Stat
-Q. It is located in Erie County on the eastern end of Lake Erie. The
°Ilnding area contains a large industrial region as well as Niagara
N1,1
4-8, a major resort area. The population of Buffalo itself, roughly
hair a million, declined by eight per cent between 1950 and 1960, reflectPcTulation shifts to suburban areas. The city is served by five cornlea hanks, of which Liberty is the third in size, and there is no
evide
4Ce tending to show that either the convenience or the needs of the
conza
4111tY are not being met satisfactorily at the present time.
Batavia, seat of Genesee County, is about 40 miles east of
ktral
4-0 and about the same distance west of Rochester, where many of
tt,
esidents are employed. It has a population of some 18,000 and is
a res
idential and industrial community with three banking facilities,
cow
lsting of First and branches of the two largest Buffalo banks, Marine
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Federal Reserve Bank of St. Louis
all°1 Manufacturers. Since these branches can offer the varied services
arid higher lending limits provided by their parent banks, convenience
"needs of the community would continue to be adequately served even
t the proposed merger were not consummated, although bringing Liberty
into Batavia would provide a more convenient third choice of facilities
ot this
kind.
The factor of convenience and needs of both communities
then, like the banking factors, provides little support for,
1)14 ls
not inconsistent with, approval.
Competition. - The only direct competition between First and
LibertY involves Liberty's branch at Oakfield, some seven miles north8t of
Batavia.
Of the total deposits (5.8 million) of the Oakfield
ba C
h,6.5 per cent, and of its loans
($3.1 million) 11 per cent,
'nate in Batavia. Some 60 depositors have accounts in both banks,
"
Pirst has deposits of $329 thousand from Oakfield equal to 5.7 per
and loans of $134 thousand equal to 4.3 per cent of the deposits and
In
respectively, of Liberty's branch. Accordingly, although these
-4iQs represent nominal percentages of the deposits and loans of First,
()raPe'
t-1+ion between the two could be said to be moderate. This competitioh .
'
14111 be eliminated by approval, and customers who now choose between
tolir
banks, that is, between First and branches of the three largest
kft
banks, will have their range of choice narrowed to three.
On the other hand, analysis of the situation in Buffalo
11144e
ates a genuine need for a third large bank to compete vigorously
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Federal Reserve Bank of St. Louis
with Marine and Manufacturers.
The economy of the area is expanding,
411c1 While the two big banks have kept pace with that expansion, Liberty
has fallen considerably behind them. Due to the area pattern of growth,
'
che principal tool for banking expansion there will be the opening of
bl anches, either acquired by merger or where possible de novo, in the
811burbs and satellite communities of larger centers, like Buffalo. In
the case of Batavia, because of "head office protection" afforded First
bY'New York law, the only way in which Liberty can open a branch is
through
merger with First. Acquisition of First should be of some
144teria4. assistance to Liberty in its current effort to place itself in
better competitive position vis-a-vis Marine and Manufacturers.
While the Board considers it necessary to scrutinize with care
thetrend toward increasing banking concentration in western New York
Sta
te, it does not find that, under the circumstances of the present
t'8e, the merger of First into Liberty will disadvantage either the local
bahl,
near Batavia, or the relatively small fourth and fifth ranking
batik
8 in Buffalo. While the merger would eliminate some existing competi4011
2 on the other hand it would enhance the position of Liberty as an
erre
etive competitive force in Buffalo and the surrounding area.
Summary and conclusion..In reaching a decision on an
413Plication under the Bank Merger Act of 1960, the Board is required
to,
'
°11eider all the relevant factors and weigh them in order to reach
ent. In the present case, neither the banking factors nor the
and needs of the community weigh for or against approval,
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Federal Reserve Bank of St. Louis
-1(
-6and there are both favorable and unfavorable considerations under the
e°111Petitive factor. Although the decision is a close one, the Board
reeas that, on balance, permitting the merger of First into Liberty
If°41d. beneficially stimulate competition in the Ninth Banking District
q New York State.
For these reasons, the Board finds that the proposed merger
1104.1.d be in the public interest.
be
ceober 20, 1962.
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Federal Reserve Bank of St. Louis
Item No. 15
12/20/62
DISSENTING STAihMENT OF GOVERNOR ROBERTSON
Consummation of this merger would deprive Batavia of its
orn,.
unit bank, which is an exceptionally sound and well-managed inthat effectively competes with Liberty Bankts Oakfield branch
"With the branches in Batavia of Marine Trust Company and Manufacturers
and Traders Trust Company.
on this
The majority statement concedes that favorable action
41)Plication finds no support under the so-called banking factors or with
reePect to the needs and convenience of the communities involved.
The
the full range
barIllIng public in and around Batavia has ready access to
(If banking services through the Batavia branches of Marine and M & T2
111 Liberty's branch at Oakfield, and The First National Bank of Batavia
(14hich approval of this application will eliminate).
majority states
In support of approval of the application, the
that consummation of the transaction would beneficially stimulate competit4on in the Ninth Banking District of New York State.
That, of course,
s with
ls the District containing the areas in which Liberty compete
Mar.
hen
lne and fl & T. I am unable to see how the merger will strengt
deposits
the competitive position of Liberty in Buffalo, unless the
"c1111red by Liberty from First are siphoned away from the Batavia
l
'"-Inity into Buffalo, a result which would weigh against approva
°t the merger.
Moreover, there is nothing in the record to indicate
that Liberty will be able to compete in and about Batavia in a stronger
Or
more constructive way than First does now.
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Federal Reserve Bank of St. Louis
4
-2-
Approval of the application means that both present and
P°1;eritial competition between First and Liberty will be eliminated.
Members of the banking public in the Batavia-Oakfield area will not only
have
Present alternative sources of banking service reduced from four to
three,
but they will no longer have the opportunity of dealing with a
4cal independent bank; that many have preferred to do so is evidenced
hY Pirst's excellent growth record.
The removal from Batavia of "home
"ce protection" as a result of the merger is unimportant in a community
11*.th a population of only 18,000 and varied banking facilities already
th the
area.
The Bank Merger Act was intended by Congress to curb bank
111N:ers inimical to a competitive banking system.
hough
tl
The steady reduction,
mergers, in the number of unit banks, and the consequent elimina-
of competition were compelling considerations that prompted enactment
or he
-
and the inadequacies of then existing law with respect to the
)111Petitive factor in bank absorptions was emphasized repeatedly during
Congress! consideration of the Act. (Senate Report No. 196, April 17,
1959
'PP. 8, 14; House Report No. 1416, March 23, 1960, pp. 3-5) In the
11'44(13 of Senator Robertson, Chairman of the Senate Committee on Banking
klIct 0
urrency, the Act "seeks to make mergers of banks more difficult".
(1CK
uong. Record, Part 61 p. 8131)
It is significant to note that the merger trend, which gave
to the Congressional concern resulting in enactment of the law, con4411
"unabated; more commercial banks have been eliminated through mergers
14 1
,
762 than in any of the three years preceding enactment of the Bank
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Federal Reserve Bank of St. Louis
-3The statute and its legislative history reveal that Congress
intended to make approval of a bank merger dependent on a positive
showing that the public interest would be benefited and rejected the
Philosophy
that doubts should be resolved in favor of such mergers°
The burden was placed on the proponents of a merger to show that it
'101114
promote the public interest. (House Report No. 1416, March 23,
196°) PP0 11-12; Senate Report No. 196, April 17, 1959; pp. 19-21;
106 Cong. Record, Part 6, p. 7258, Part 8, p. 9712)
It was specifically recognized during consideration of the
4gislation that any competitive disadvantage of a bank with respect to
°41er banks in a community was a proper matter to be taken into considera4011 by the banking agency concerned in considering a merger application.
ever, it was emphasized that this would be just one of the factors to
be
•
`'cinsIdered.
As explained by Senator Robertson, the mere fact that a
bank
was under some competitive disadvantage would not give it "a right
to—
Ilgage in a merger which otherwise would be ruled out" under other
4c'Ors
required to be considered by the agency concerned. (106 Cong.
Rec„
Part 8, p. 9713)
In this case, there is no showing of advantage to the public but
an expressed hope that consummation of the transaction in some way will
eitt the area by stimulating competition between Liberty (already a
1'222 Million bank) and the other two large Buffalo banks. To hold, in
the
e circumstances, that the transaction is in the public interest (as the
ty does) leaves the statute without any real meaning or effect and
rna s
J-L an instrument conducive to further concentration of banking resources
l'ather than an effective regulation to curb mergers and thereby counter the
tN4a
toward concentration of banking resources, which occasioned enactment
Digitized
c3t for FRASER
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wle statute
Federal Reserve
Bank of St. Louis
•
Indeed, it is difficult to conceive of a merger application 811ort of one that would patently violate the antitrust laws - that would
Ilarrant denial, if the principle implicit in the decision of the majority
i8
adhered to in the future, That principle appears to contemplate with
4PProval a situation in which a few banks control all the banking facilities
°t an area (or even a whole State)., In this case, seemingly, Liberty Bank
has carte blanche to absorb smaller banks in Western New York until it
"-eves size parity with Marine and M & T. Viewed realistically, this
Ilieans that these three may finally become the only banks in a large part
Ott
Ninth Banking District of New York, with its numerous cities and
t4Ins and a population of more than a million. In this particular case,
413Proval of the application means that three Buffalo banks will have the
Peller to decide who gets credit (and who does not) in Batavia, 40 miles
41Nr. Liberty admittedly has embarked on an expansion program which has
111Q-11ded the recent acquisition of four banks, and it is understood that
Plans
are in progress for applications to acquire by merger two banks in
°ther communities.
The implications arising from approval of the present application
t°r thA
-- continuation of healthy, independent banks or the establishment of
N4r
Yanks seem grave indeed, because of the encouragement that is being
°
'llerl by this decision to constantly increasing concentration of banking
Na,
-4rces and power in the three large Buffalo institutions.
I would deny the application.
Nenlber 20, 1962
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Federal Reserve Bank of St. Louis
1900
Item NO. 16
12/20/62
FEDERAL RESEME SYSTEr:
[12 CFR Part 209]
[Reg. I]
PART 209 - ISSUE AND CANCELLATION OF CAPITAL STOCK
OF FEDERAL RESERVE BANKS
1. Effective February 1, 1963, Part 209 is revised to read
48
0110WS
See
209.1
National bank in process of organization
20942
State bank becoming member
2090
.)
Increase or decrease of capital or surplus
2°9.4
Increase or decrease of deposits by mutual savings bank
2095.
Merger or consolidation
2096.
Conversion of national bank
209.7
Insolvency
209,8
Voluntary liquidation
209.9
Other closed national banks
209.10
Other closed state member banks
Z09.4
Voluntary withdrawal from membership
209'12 Involuntary termination of membership
209o,
Cancellation of old and issue of new stock certificate
2090,
4-4 Farms
AUTHORITY: § 209.1 to 209.14 issued under 12 U.S.C. 248(i).
/1131"ets or applies 12 U.S.C. 321-338, 486, 1814, 1816.
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Federal Reserve Bank of St. Louis
-2-
§ 209.1. NATIONAL BANK IN PROCESS OF ORGANIZATION
2
while in process of organization,
'
Each national bank,
shall
rileLith the Federal Reserve Bank of its district an application on
3
F
Qrm FR 30, and each nonmember State bank converting into a national bank,
Llizilder the provisions of section 19 of the Federal Reserve Act (12 U.S.C.
), national banks located in a dependency or insular possession or any
13thert of the United States outside the States of the United States and
Nee District of Columbia are not required to become members of the Federal
:
3e..me System but may, with the consent of the :Board, become members of
t e Pystem. Any such bank desiring to be admitted to the System under
t2,10rovisions of section 19 should communicate with the Federal Reserve
Iiith which it desires to do business.
2
A
cr new national bank with no capital or board of directors which is
p?flized by the Federal Deposit Insurance Corporation pursuant to the
182 310
of section 11(h) of the Federal Deposit Insurance Act (12 U.S.C.
should not ainly for stock of the Federal Reserve Bank of its
3
(list
rict until it is in process of organization as a national bank with
n
4"
1 "a1 pursuant to the provisions of section 11(k) of the Federal Deposit
surance Act (12 U.S.C. 1821(k)).
31.1he
ze never a State member bank is converted into a national bank under
ftaon 5154 of the Revised Statutes (12 U.S.C. 35), it may continue to
•
as a national bank its shares of Federal Reserve Bank stock preheld as a State member bank. If the aggregate amount of its
and surplus is increased or decreased, the national bank shall
209.3, for additional
• an application on Form FR 56, as provided in
of Federal
cancellation
es of Federal Reserve Bank stock or for
name of the
the
in
issued
"ve Bank stock. The certificate of stock
aC.
certificate
new
a
and
member bank shall be surrendered and canceled,
as probank,
national
•
161 be issued in lieu thereof in the name of the
209.13.
-ecl in
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Federal Reserve Bank of St. Louis
-3file an applicaticn on Form FR 30a, for an amount of capital stock
‘3'1 tic Federal Reserve Bank of its district equal to six per cent of the
P41c1-111314
capital and surplus of such national bank. If the application
iS fOU.11C1 to be in proper form it will be ap?roved by the Federal Reserve
ilarlic effective if and when the Comptroller of the Currency issues to such
bani,
his certificate of authority to commence business.
a.P1)1:'-icic bank shall thereupon5
Upon approval, the
pay the Federal Reserve Bank of its dis-
tliict one-half of the amount of its subscription and, upon receipt of
C1.7'iCC from the Federal Resorve Bank as to the required amount, one-half
Of °Ile per cent of its paid-up subscription for each month from the
1)Ilic'd of the last dividend, and upon receipt of the payme-nt for Federal
-I've Bank stock the Federal Reserve Bank will issue a receipt therefor,
1)4
ee tile amount in a suspense account, and notify the Comptroller of the
enc:Y that it has been received. When the Col.ntroller of the Currency
18s
,
"es his certificate of auti..ority to commence business the Federal
117e Bank will issue a stock certificate as of the date upon which the
1)411.
()Peas for business.
oilbs .
Nkle oriptions to the capital stock of the Federal Reserve Bank must be
ez113i,in an amount at least equal to six per cent of the amount of the
and surplus of the applying bank which is to be paid in at the
tho Comntrollcr of the Currency authorizes it to commonce business.
-*_cler to avoid the necessity of making applications for additional
in the Federal Reserve Bank, as additional installments of the capital
'
Qr1qc
urplus of the applying bank are paid in, application may be made for
tIle 4 in the Federal Reserve Bank in an amount equal to six per cent of
kloilallthorized capital of the applying bank, plus six per cent of the
aDtallt of surplus, if any, which the subscribers to the capital of the
rl-ht bank have agreed to pay i -j.
j
nt may be made, if desired, at any time prior to approval of the
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Federal Reserve Bank of St. Louis
03
-4The remaining half of the subscription of the applying bank will be
slabject to call when deemed necessary by the Board of Governors of the
Pederal Reserve System.
209.2.
STATE BANK BECOMING MEMBER
Any State bank, Morris Plan bank, or mutual savings bank,
desiring to become a member of the Federal Reserve System shall make
aPplication as provided in Part 208 of this Chapter (Regulation H)
44d) when such application has been approved by the Board of Governors
c)t the Federal Reserve System and all applicable requirements have been
e°11r.g1ied with, the Federal Reserve Bank will issue an appropriate
certificate of Federal Reserve Bank stock as provided in § 208.5(b).
209.3.
INCREASE OR DECREASE OF CAPITAL OR SURPLUS
Whenever any member bank increases or decreases the aggregate
6
(AInt of its paid-up capital and surplus,
it shall file with the
?ecl°ral Reserve Bank of its district an application on Form FR 56 for
41ch additional amount or for the cancellation of such amount, as the
c4ce may be, of the capital stock of the Federal Reserve Bank of its
If
member bank sets up a reserve for dividends payable in common
at
4 ek, such reserve will be regarded as surplus for the purpose of
)
(.
cle,
1,Q t-ermining the amount of Federal Reserve Bank stock which the bank is
t:Illired to hold, provided such reserve is established pursuant to a
..'"olution of the board of directors, will become a part of the permanent
t?ital of the bank, and will not be used for any other purpose than
e Payment of dividends in common stock.
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Federal Reserve Bank of St. Louis
-5Federal
district as may be necessary to make its total subscription to
capital and
43erve Bank stock equal to six per cent of its combined
surDlus.
al Reserve Bank stock
After an application for additional Feder
the applying member bank
haS been approved by the Federal Reserve Bank,
district one-half of its
311a11 pay to the Federal Reserve Bank of its
cent a month from
subscription, nlus one-half of one per
th,
Reserve Bank stock,
- Period of the last di-ridend on such Federal
•friereupon the appropriate certifcatc of stock will be issued by the
P°deral Reserve Bank.
additional subscription
The remaining hall: of such
Governors
11:111 be subject to call when deemed necessary by the Board of
cancellation
of the Federal Reserve Systaa. After an application for
Or
ved, the Federal Reserve Dank
Federal Reserve Bank stock has been appro
)
IQ
ing bank is required to
-4 accept and cancel the stock which the apply
equal to all cash paid
render, and will ray to the member bank a sun
:lus one-half of one per cent
sllbscriDtions made on the stock canceled
e:7cecd the book
rlonth from the period of the last dividend, not to
value thereof.
DEPOSITS BY
209.4. =EASE OE DEGREA3E OF
NUTUAL SAVINGS BANK
t of condition as of a date
Whenever, as shown by the last repor
total deposit liabilities
eeeding January 1 or July 1 of each year, the
Federal Reserve System
a r.utual savings bank which is a member of the
have
last adjustment of its holdings of
Increased or decreased since the
or
Ped,_
the Federal Reserve
--cal Reserve Bank stock, the bank shall file with
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Federal Reserve Bank of St. Louis
Bait
Of
its district an application on Form FR 56a for such additional
alllount or for the cancellation of such amount, as the case may be, of
Pecleral Reserve Bank stock of its district as may be necessary to make
tts total subscription to Federal Reserve Bank stock equal to six-tenths
°I °Ile per cent of its total deposit liabilities as shown by such last
liePort of condition, and Federal Reserve Bank stock will be issued or
celleeled in the manner described in
na's
209.3. In the case of any mutual
bank -which is not permitted by the laws under which it was organ-
zed to
p-arcllase stock in the Federal Reserve Bank and has a deposit with
the
Federal Reserve Bank in lieu of such subscription, such deposit will
be
-JuLted in the same manner as subscriptions for stock.
209.5. FTGLIt OR CONSOLIDATION
(a) '.ihenever two or more member banks merge or consolidate and such
'Lion results in the merged or consolidated bank acquiring by operation of
447
the Federal Reserve Bank stock owned by the other bank or banks,
of the Federal Reserve Act provides that nalares of the capital
01' Federal Reserve Banks ouned by member banks shall not be transor hyoothecated." This provision prevents a transfer of Federal
-1-70 Bank stock by purchase, but does not prevent a transfer by operation
1
the "tla. Where one member bank ourchases all or a substantial portion of
lassets of another member bank, the latter being placed in liquidation,
,
;
- bank to surrender its Federal Deserve
necessary for tic 14 nuidatin,
eap'•,stoek;,as -erovded in § 202.8, and for the purchasing bank, if its
.-11 end surplus is increased or decreased, to adjust its holdings of
4c1 '
al Res,- rve Bank 5-beck as provided in
209,3.
If the assets and obligations of a merging or consolidating member
ot
Ise transferred to a merged or consolidated member bank by operation
bQe0aIT, no bank being placed in liquidation, the merged or consolidated bank
zei.l
'
Ics the ow-nor of the itderal Reserve Bank stock of the merging or con44t:Ing bank as soon as the merger or consolidation takes effect, and a
,
11.c11(
roproscLmting Federal Reserve Bank stock will be issued as
-I'ciLlciin § 202.13(b). Mergers or consolidations under the acts of
Corl,,
Providing for thc merger or consolidation of national banking
"Lations
(12 U.3.C. 215, 215a) meet all of these conditions.
belilt a
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Federal Reserve Bank of St. Louis
•
7Which also results in the merged or consolidated bank having an
a:Lregatc capital and sur2lus in excess of, or less than, the aggregate
Dittl and surplus of the merging or consolidating member banks
such
Cod or consolidated bank shall, as provided in § 209.3, file with the
Pod
oral ieservu Bank of its district an application on Form FR 56 for
611eh additional amount, or for the cancel3rtion of such mount, as the
be
may be, of Federal Reserve Bank stock of its district as may
Bank stock
riQecssary to make its total subscription to Federal Reserve
eO1 to six --)er cent of its combined capital and surplus. In any such
Federal
tho nerg:.d or consolidated bank shall surrender to the
1-kro Bank the certificates of Federal Reserve Bank stock hold by the
'
or consolidated bank
and a now certificate will be issued as
Drovided in
§ 209.13(b).
with a
(b) Whenever a member bank merges or consolidates
11°111-11crabor bank, under the charter of the latter bank, an application
Porn
o
on
Bank for cancellation
". 06a shall be filed with the Federal Reserve
of
loderal Reserve Bank stock held by the member bank. Upon approval
application, the Federal l'.0serve Bank will cancel such stock as of
the r,
'- a-Ge the merger or consolidation takes effect
'
and will adjust accounts
rth
to
-41 ng to any indebtedness of the merging or consolidating bank
Ueh -l
oclercl Reserve Bank all cash paid subscriPtions made on the stock
the
'
.
.1(=d plus one-half of one per cent a month from the period of
• .
dividend, not to exceed the book value thereof, and the remainder,
a
tf ,
-Y, Will be paid to the merged or consolidated bank.
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Federal Reserve Bank of St. Louis
ti
209.6. CONVER,SION OF EATIONAL BANK
Whenever a national bank converts into a not-mcmber State bank,
aPplication on Form 711 86b shall be filed with the Federal Reserve
4'n1c for cancellation of Federal Reserve Bank stock held by the national
b31-1k. Upon approvol of such application, the Federal Reserve Bank will
earicel such stock as of the date the conversion takes effect, and will
'cliust accounts in the manner described in ri 209.5(b).
209.7. ESOLVINCY
8
i.;henever a member bank is declared insolvent and a receivcr
k'Dointed, the receiver shall,
tl-Tue months from the date of his
41:)°intracnt, file with the Federal aeserve Bank of the district an appli4tion, en Form FR, 87 for cancellation of Federal Reserve Bank stock held
by
application
the insolvent member bank. If the receiver fells to make
1fl the time specified,the board of directors of the Federal Reserve
4111:
either issue an order to cancel such stock,
if the circum—
terleos waryTnt it, grant the receiver additional time in which to file
11 aPplicPtion. Upon c3provel of such application or upon issuance of
of the
Order, the Federal Reserve Bank will cancel such stock as
(.t'Q of such ap,)rovc1 or order and will adjust accounts in the manner
(1c2cribcd in § 2C9.5(b).
other agency
term nreceiver n includes any person, commissionlor
god by lai with the duty of winding up the affairs of the bank.
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Federal Reserve Bank of St. Louis
I
-9209.8. VOL1sI73A-LY TA-QUI:D.1'1'10N
Whenever a member bank zoos into voluntary liouidation, as,
for
example, upon sale of assets to another bank, the liquidating agent
some other person or persons duly authorized by the stockholders or
b0ard of directors to act on behalf of the bank shall, within three months
lirsoll the date of
the vote to place the bank in voluntary linuidat-ion,
the Federal Reserve Bank of the district an application on
l-1r
'86 for cancellation of Federal Reserve Bank stock held by the
4111 1'1c
lin •
-1111-clatin7, member bank.
if such application is not filed within the
sriocifiod, the board of directors of the Federal Reserve Bank will
issue an order to cancel such stock, or, if the circumstances
rt it, grant additional time in which to file an application. Upon
of such application, or upon issuance of such order, the Federal
70 Bank will cancel such stock as of the date of such approval or
°‘(1.r and 1:1 1_1 adjust accounts between the liquidating raomber bank and
til° Federal Reserve Bank in the manner described in
209.5(b).
209.9. OTIER CLOMD NATIONAL BANKS
(a) Whenever a national bank which has not gone into liquidation
s
'
'
-1"ovided in section 5220 of the Revised statutes of the United States
3*C. 181), and for which a receiver has not boon appointed, disralosits bank-7 n{,
-_, operations for a period of sixty days, the Federal
l'it° flank
will report the facts to the Comptroller of the Currency with
t°111ont of reasons why a receiver should be appointed for the national
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Federal Reserve Bank of St. Louis
bank. If such receiver is appointed, the procedure prescribed in
209.7 for cancellation of Federal Reserve Bank stock held by the
tional bank shall be followed.
(b) Whenever a national bank has been placed in the hands of a
e°11servator, the procedure prescribed in § 209.7 for cancellation of
'-raa. Reserve Bank stock hold by such bank shall be followed; provided
CertifiCcte
is furnished by the Controller of the Currency to the
ett'ect that the conservator has been authorized to apply for cancellation
Pederal Reserve Bank stock, and that the bank is to be liquidated and
not to be permitted to resume business or to reorganize.
§ 209.10. OTHER CLOSED STATE
L
- AMS
Whenever a State member bank ceases to exercise banking functions
hout being placed in liquidation in accordance with the laws of the
t'late in which it is located and without a receiver9 appointed for it,and
sile1113 nk has not within sixty clays of the cessation of banking functions
1)211-eol for withdrawal from r.c.mbership in the Federal Reserve System as
Pl'°171-cloci in ?art 208 of this Chapter (Regulation H), the Federal Reserve
Of thc district in which such State member bank is located will furt0 Board of Governors of the Federal Reserve System with full inforrattic,
-11 with reference to the facts involved in the case and with a
"lto recommendation as to whether the Board should require the State
raerr6
er bank to surrender its Federal Reserve Bank stock and terminate all
0}
t
"receiver" includes any person, commission,or othcr agency
Ced by lar with the duty of winding up the affairs of the bank.
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Federal Reserve Bank of St. Louis
I(1
-alFederal Reserve System. Upon
Itiglats and privileges of membership in the
membership of the State member
l'eeedot of this advice, if termination of
give the member bank notice of the
bank op-pears desirable, the 1.30ard will
determine whether it3 membership
d te upon which a hearing will be held to
the membership of a State
s'aould be terminated. If, after such hearing,
Bank of
will direct the Federal Reserve
11:: is terminated, the Board
r bank is located to cancel
the Federal Reserve district in which the membe
of termination of membership
the Federal Reserve Bank stock as of the date
§ 209.5(b).
ancl oqust accounts in the manner described in
11EISER.SHIP
§ 209.11. VOLUNTARY IIIThil-tA.IIAL FROTT
withdraw from membership in
Any State member bank desiring to
procedure set forth in
tile Federal Reserve System shall follow the
applicable reouire?art 203 of this Chapter (Regulation H), and when all
the Federal Reserve Bank will
111°nts of § 208.10 have been complied with
b,7- the member bank as of the
eancel the Federal Reserve Bank stock held
and will adjust accounts in the manner
clate of withdrawal from membership
cle
zicribed in
5 209.5(b).
P
209.12. INVOLUNTARY TERIMIATION OF iELSERSIII
membership has been terminated for
Any State member bank whose
the Federal Reserve Act or reg•ulara.ilure to comply with the provis•.'ons of
Federal Reserve System shall
tic)113 of the Board of Governors of the
as of the date membership is
111'render its Federal Reserve Bank stock
ted in the manner described in
tc•rr,•
.Thated and accounts will be adjus
(b
ti 209 5
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Federal Reserve Bank of St. Louis
—112-
209.13.
CANCELILiffiOY OF OLD AND I3SUL OF
all STOCK CERTIFICATE
(a) t,,henever a member bank changes its name it shall surrender
t0 the Federal Kaserve Bank the certificate of Federal Reserve Bank stock
Waich was issued to it under its old name.
If the Federal Reserve Bank
has or is furnished with proof of the change of name, it will cancel the
eertdficate so surrendered and will issue in lieu thereof to and in the
riarle of the member bank surrendern7 it a new certificate for the number
Shares represented by the certificate so surrendered.
(0) If a member bank has filed an application for an increase
°I* decrease in its holdings of Federal Reserve Bank stock pursuant to the
I)r°Irisdons of
200.3, or has acquired the Federal Reserve Dank stock from
another bank by virtue of a merger or consolidation of the kind described
in
209.5(n), it shall surrender the stock certificate weviously issued
t° it and the certificate representinc an:,, stock so acquired, and the
?ecleral Reserve Bank will issue a new certificate for the number of shares
l'ePresented by the surrendered certificate or certificates decreased by
the number of shares canceled or increased by the number of additional
hares to be issued.
(c) In order to drovide a convcnient means for identifying shares
Ot
ederal Reserve Bank stock purchased and paid for prior to 1:arch 28,
1942, as to which dividends are not subject to Federal taxatior,, the
'Ltral Reserve Bank will endorse en the back of the stock certificate an
°Priate notation setting forth the number of shares represented which
'
')D1
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Federal Reserve Bank of St. Louis
3.
litre purchased and paid for prior to Earch 28, 1942, and the number of
ehares purchased and paid for on or after that date. In lieu of issuing
single certificate, the Federal Reserve BPrik may issue two certifit4tes to each member bank holding both classes of stock, one representing
atsck purchased and paid for prior to March 28, 1942, and the other
Presenting stock purchased and paid for on or after that date, in
case the former will be endorsed to read: "This certificate
ePresents shares of Federal Reserve Bank stock which were purchased
alladpaid for prior to March 28, 1942."
No endorsement will be necessary
()II the latter certificate.
§ 209.14.
FORMS
All forms referred to in this part and all such forms as they
3`Y be amended from time to time shall be a part of the regulation
%Iltained
in this part.
2a. The purpose of this revision is to eliminate obsolete
14.
visions with respect to duties of the Federal Reserve agent; provide
14'Qcedures to be followed in case of merger or consolidation of a member
'
44
with a nonmember bank, conversion of a national bank into a non-
Illetter bank, and involuntary termination of membership; and authorize
the
4
4-ssuance of two stock certificates in order to indicate stock issued
re March 28, 1942.
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Federal Reserve Bank of St. Louis
-14b. This revision was the subject of a notice of proposed
rlae making, published in the Federal Register (27 F.R. 12271), and
Ifts adopted by the Board after consideration of all comments received
trom interested persons.
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
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Federal Reserve Bank of St. Louis
TITLE 12 - BANKS AND BANKING
Item No. 17
12/20/62
CHAPTER II - FEDERAL RESERVE SYSTEM
SUBCHAPTER A - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
[Reg,, Y]
PART 222—BANK HOLDING COMPANIES
§ 222.115i Applicability of RanIc Service Corporation Act in certain
bank holding company situations.
(a) Questions have been presented to the Board of Governors
l'egarding the applicability of the recently enacted Bank Service
Corporation Act (Public Law 87-6561 approved October 23, 1962) in
e4se5 involving service corporations that are subsidiaries of bank
h°1-ding companies under the Bank Holding Company Act of 1956. In addition to being charged with the administration of the Iltter Act, the
Board is named in the Bank Service Corporation Act as the Federal super1115°rY agency with respect to the performance of bank services for State
member banks.
(b) Holding company-owned corporation serving only subsidiary
•.4••.....V.M.•.•••••
- (1) One question is whether the Bank Service Corporation Act
4 applicable in the case of a corporation, wholly awned by a bank hold Company, which is engaged in performing "bank services", as defined
in section 1(b) of the Act, exclusively for subsidiary banks of the holdCompany
(2) Except as noted below with respect to section 5 thereof, the
1/4nk Service Corporation Act is not applicable in this case.
This is
tl'ue because none of the stock of the corporation performing the services
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Federal Reserve Bank of St. Louis
-214 owned by any bank and the corporation, therefore, is not a "bank
service corporation" as defined in section 1(c) of the Act.
A corpora-
tion cannot meat that definjtion unless part of its stock is owned by
two or more banks.
The situation clearly is unaffected by section 2(h)
°f the Act which permits a corporation that fell within the definition
initially to continue to function as a bank service corporation although
811bsequently only one of the banks remains as a stockholder in the
corDoration.
(3) However, although it is not a bank service corporation, the
e°1"130ration in question and each of the banks for which it performs
b4nk services are subject to section 5 of the Pank Service Corporation
44t. That section, which requires the furnishing of certain assurances
to the appropriate Federal sunervisory agency in connection with the
t rformance of bank services for a bank, is applicable whether such
ces are performed by a bank service corporation or by others.
(4) Section 4(a)(1) of the Bank Holding Company Act prohibits the
Igr'lisition by a bank holding company of "direct or indirect ownership
or
control" of shares of a nonbanking company, subject to certain excep"s.
ra
Section 4(c)(1) of the Act exempts from section 4(a)(1) shares
company engaged "solely in the business of furnishing services to
Derforming services for" its bank holding company or subsidiary banks
thel'eof.
Assuming that the bank services performed by the corporation in
ciAlestion are "services" of the kinds contemplated by section 4(c)(1)
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Federal Reserve Bank of St. Louis
-3Of the Bank Holding Company Act (as would be true, for examples of the
electronic data processing of deposit accounts), the holding companyts
%Inership of the corporationts shares in the situation described above
Clearly is permissible under that section of the Act.
(c) Bank service corporation owned by holding company subsidiaries
..!1EL.Ferving also other banks, - (1) The other question concerns the
MNI.••••••/••••••••••••••••••••••• •••••••••••••••MI....10••••••••
4PPlicability of the Bank Service Corporation Act and the Bank Holding
C°r4PanY Act in the case of a corporation; all the stock of which is
°Tallied either by a bank holding company and its subsidiary banks together
(31' by the subsidiary banks alone, which is engaged in performing "bank
aervices", as defined in section 1(b) of the Bank Service Corporation
4", for the subsidiary banks and for other banks, as well.
(2) In contrast to the situation under paragraph (b), the
°° Poration in this case is a "bank service corporation" within the
blearling of section 1(c) of the Bank Service Corporation Act because of
the awnership by each of the subsidiary banks of a part of the corporati^, •
va's stock. This stock ownership is one of the important facts differelltiating this case from the first one. Being a bank service corporation,
the corporation in question is subject to section
3
of the Act concerning
4PPlications to bank service corporations by competitive banks for bank
41'vices, and to section
4 forbidding
a bank service corporation from
Naging in any activity other than the performance of bank services for
bars.
5,
mentioned previously and relating to "assurances",
also is applicable in this case.
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Federal Reserve Bank of St. Louis
(3) The other important difference between this case and the
situation in paragraph (b) is that here the bank service corporation
Derforms services for nonsubsidiary banks, as well as for subsidiary
tanks.
This is permissible because section 2(a) of the Bank Service
Ccrooration Act, which authorizes any two or more banks to invest limited
4tounts in a bank service corporation, removes all limitations and prohibitions of Federal law exclusively relating to banks that otherwise
1101ald prevent any such investment.
From the legislative history of
8ecrti0n 2(a), it is clear that section
6 of the Bank Holding Company Act
18 among the limitations and prohibitions so removed.
But for such
l'elloval, section 6(a)(1) of that ;let would make it unlawful for any of
the subsidiary banks of the bank holding company in question to own
stock in the bank service corporation subsidiary of the holding company,
the exemption in section 6(b)(1) would not apply because of the servicinp uy the bank service corporation of nonsubsidiary banks.
(4) Because the bank service corporation referred to in the question
serving banks other than the subsidiary banks, the bank holding
e m
-rany is not exempt under section 4(c)(1) of the Bank Holding Company
Act from the prohibition of acquisition of nonbanking interests in
ection 4(a)(1) of that Act.
The bank holding company, however, is
slItitled to the benefit of the exemption in section 4(c)(4) of the Act.
114t Section exempts from section
b(a) "shares which are of the kinds
4nd amounts eligible for investment by National banking associations
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Federal Reserve Bank of St. Louis
-5lulder the provisions of section 5136 of the Revised Statutes".
aection 5136 provides, in part, that:
"Except as hereinafter provided
°r otherwise permitted by law, nothing herein contained shall authorize
the purchase by the association for its own account of any shares of
stock of any corporation.'
As the provisions of section 2(a) of the
/3411k Service Corporation Act and its legislative history make it clear
that shares of a bank service corporation are of a kind eligible for
inlrestment by national banks und3r section 51_36, it follows that the
direct or indirect ownershin or control of such shares by a bank holdin
company are permissible within the amount limitation discussed below.
(d) Limit on investment by bank holding comnany system in stock of
b,r1k
the
eice corporation. - (1) In the situation presented by paragraph (c)
bank holding company clearly owns or controls, directly or indirectly,
411 of the stock of the bank service corporation.
The remaining clues-
therfore, is whether the total direct and indirect investment of
the bank holding comnany in the bank service corporation eYceeds the
41/1°1111t nermissible under the Bank Holding Company Act.
(2) The effect of sections 4(a)(1) and 4(c)(4) of the Bank Holding
C°111ParlY Act is to limit the amount of shares of a bank service corporati0
r1 that a bank holding company may own or control, directly or into the amount eligible for investment by a national bank,
a
Previously indicated. Under section 2(a) of the Bank Service
cot
'
Peration Act, the amount of shares of a bank service corporation
1.1.@ble for investment by a national bank may not exceed "10 per centum
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Federal Reserve Bank of St. Louis
(of the bankts] .
. paid-in and unimpaired capital and unimpaired
surplus".
(1) The Boardts view is that this aspect of the ratter should be
determined in accordance with the principles set forth in
222.111,
as revised (27 F. R.a41/), involving the application of sections 4(a)(1)
and 4(c)(h) of the Bank Holding Company Act in the light of section 302(b)
the Small Business Investment Act limiting the amount eligible for
investment by a national bank in the shares of a small business investr'•ent company to two ner cent of the bankts "capital and surplus".
(4) Except for the differences in the percentage figures, the
i
nvestment limitation in section 302(b) of the Small Business Investnlerlt Act is essentially the same as the investment limitation in
8ecti0n 2(a) of the Bank Service Corporation Act since, as an accounting matter and for the Purposes under consideration, "capital and surnlus"
'a'AY be regarded as equivalent in meaning to "paid-in and unimpaired
e4Dital and unimpaired surplus".
Accordingly, the maximum permissible
investment by a bank holding company system in the stock of a bank
corneration should be determined in accordance with the formula
tr
escribed in § 222.111.
(12 U.S.C. 184))
Dated at "ashington, D. C., this 20th day of December, 1962.
BY order of the Board of Governors.
(Signed) Merritt Sherman
NAL)
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Federal Reserve Bank of St. Louis
MeraTt Sherman,
Secretary.
TITLE 12 - BANKS AND BANKING
Item No. 18
12/20/62
CHAPTER II - FEDERAL RESERVE SYSTEM
SUBCHAPTER A - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
[Reg. Q1
PART 217.PAYMENT OF INTEREST ON DEPOSITS
Interest Rate on
Time
Deposits of European Investment Bank
§ 217.128 Interest rate on time deposits of European Investment Bank.
(a) By the Act of October 15 1962 (P. L. 87-827), section 19
of the Federal Reserve Act was amended to exempt, for a period of
three years, time deposits of "foreign governments, monetary and
financial authorities of foreign governments when acting as such, or
international financial institutions of which the United States is
member" from the limitations prescribed pursuant to that section on
the maximum rate of interest payable by member banks on time and savings
deposits.
(b) The Board has been presented with the question whether this
exemption is applicable to time deposits of the European Investment
Bank.
(c) The Eurpoean Investment Bank was established by treaty between
six European nations, and its stock is held by the member nations.
The
Bank is engaged principally in making loans and guarantees to business
enterprises in the member countries in furtherance of the objectives
of the European Common Market.
(d) The Bank cannot reasonably be regarded as a "foreign
government". Even if it may be considered an "international financial
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Federal Reserve Bank of St. Louis
institution", it is not one of which the United States is a member.
Clearly, it does not act as a "monetary" authority of foreign governments.
In a broad sense the Bank's activities are of a "financial" nature;
but, in the light of the context of the statute and in view of its
Purposes as evidenced by its legislative history, it is the Board's
view that the Bank's functions are not such as to warrant the
conclusion that it is a "financial authority" of foreign governments.
(e) Accordingly, the European Investment Bank does not fall
Within any of the categories of institutions described in the Act of
October 15, 1962, and, consequently, time deposits of the Bank in
Member banks of the Federal Reserve System are not exempted from
limitations on maximum interest rates prescribed by the Board pursuant
to section 19 of the Federal Reserve Act and this Part.
(12 U.S.C. 248(i). Interprets or applies 12 U.S.C. 264(c)(7),
371, 371a, 371b, 461)
Dated at Washington, D. C., this 20th day of December, 1962.
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
(SEAL)
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Federal Reserve Bank of St. Louis
4
BUARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 19
12/20/62
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENC:L
TO TI-4E HOARD
December 20, 1962
Mr. George H. Ellis, President,
Federal Reserve Bank of Boston,
Boston 6, Massachusetts..
Dear Mr. Ellis:
The Board of Governors approves the payment of
salaries to the officers of the Federal Reserve Bank of
Boston for the calendar year 1963 as set forth in the
enclosed schedule. The rates listed are those fixed by
your Board of Directors as reported in your letter of
November 9, 1962. For the sake of completeness, the list
includes Vice President Hoyle and Assistant Vice President
Aubrey even though you were advised earlier of Board
approval of their salaries.
The Board believes, within the intent of its
7, 1962, increases proposed for AssistNovember
letter of
ant Vice President Thayer and Assistant Cashier Tangney
should be considered merit adjustments, subject to the
45 per cent limitation. However, since the limitation was
not in effect at the time of their August 1 promotions,
and the increases granted then might have been larger if
the restriction had been known, the Board has approved
their proposed increases. It is understood that, in the
future, only increases incident to concurrent promotions
will be excepted from the limitation on merit adjustments.
Your Chairman is being advised in a separate
letter regarding salary payments to you and First Vice
President Latham.
Very
truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
Enclosure.
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Federal Reserve Bank of St. Louis
Federal Reserve Bank of Boston
Name
D. Harry Angney
Ansgar R. Berge
Luther M. Hoyle, Jr.
John E. Lowe
Oscar A. Schlaikjer
Charles E. Turner
G. Gordon Watts
Stanley B. Lacks
Parker B. Willis
Paul S. Anderson
Leo J. Aubrey
Wallace Dickson
Robert W. Eisenmenger
Loring C. Nye
Laurence H. Stone
Jarvi:: M. Thayr, Jr.
Richard A. Walker
LOW.3 A. Zehner
Weston L. Bonney
Charles H. Brndy
Ripley M. Keating
Richard H. Radford
Eugene M. Tangney
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Federal Reserve Bank of St. Louis
Title
Vice President
Vice President
Vice President
Cashier
Vice President and General
Counsel
Vice President
Vice President
General Auditor
Economic Adviser
Financial Economist
Assistant Vice President
Assistant Vice President
Acting Director of Research
and Industrial Economist
Assistant Vice President
Secretary and Assistant
General Counsel
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
Annual
Salary
$22,000
18,000
15,500
18,000
22,000
17,500
16,500
15,000
16,000
13,000
13,000
16,500
14,500
15,000
14,000
15,000
14,000
16,500
12,500
13,000
13,000
13,000
11,000
4f
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
r›,1
Item No. 20
12/20/62
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 20, 1962
Mr. Alfred Hayes, President,
Federal Reserve Bank of New York,
New York 45, New York.
Dear Mr. Hayes:
The Board of Governors approves the payment of
salaries to the officers of the Federal Reserve Bank of
New York for the calendar year 1963 as set forth in the
enclosed schedule. The rates listed are those fixed by
your Board of Directors as reported in your letter of
November 15, 1962.
The Board has approved salary increases for four
lly
officers who are to retire during 1963, but genera
on
infavor
salary
with
look
speaking the Board does not
in
ng
the
year.
retiri
is
creases where the individual
Salary payments to Messrs. Rouse, Tiebout, Cameron, and
,
ed
Myers who will retire during 1963 are, of course approv
ments.
retire
only to the dates of their
Your Chairman is being advised in a separate
letter regarding salary payments to you and First Vice
President Treiber.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
Enclosure.
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Federal Reserve Bank of St. Louis
,
Federal Reserve Bank of New York
Annual
Name
Title
$32,500
31,500
26,000
23,000
30,000
23,000
32,500
37,500
26,000
26,000
25,000
35,000
Vice President
Vice President
Vice President
Economic Adviser
Vice President
Vice President
Vice President
Vice President and Senior Adviser
Vice President
Vice President
Vice President
Vice President and
General Counsel
General
Counsel
25,500
Assistant
John J. Clarke
Vice
President
23,250
Assistant
Felix T. Davis
21,000
Assistant Vice President
Norman P. Davis
General
Counsel
23,000
Assistant
Guy
G.
Edward
Vice
20,000
President
Assistant
John P. Jensen
20,000
Adviser
Petar P. Lang
20,000
Assistant Vice President
Robert G. Link
President
23,500
Vice
Assistant
Angus A. MacInnes, Jr.
President
Vice
21,500
Assistant
Spencer S. Marsh, Jr.
19,500
Assistant Vice President
Fred W. Piderit, Jr.
19,500
President
Vice
Assistant
Quackenbush
E.
Lawrence
20,000
Senior Foreign Exchange Officer
Thomas J. Roche
190 750
Assistant Vice President
Frederick L. Smedley
19,500
Assistant Vice President
Merlyn N. Trued
21,500
Assistant Vice President
Thomas O. Waage
23,000
General Auditor
Donald J. Cameron
13,500
Assistant General Auditor
Leonard I. Bennetts
15,000
Manager
Martin W. Bergin
12,000
Manager
Ernest E. Blanchette
19,500
Assistant Counsel
William H. Braun, Jr.
15,000
Manager
Robert L. Cooper
14,000
Assistant Counsel
Robert J. Crowley
15,500
Manager
Karl L. Ego
18,000
Manager
Peter Fousek
Manager
13,000
Martin French
16,000
Manager
Fred H. Klopstock
14,000
Manager
Harold W. Lewis
16,000
Senior Economist
Robert Lindsay
17,750
Manager
William E. Marple
16,500
Manager
Madeline H. McWhinney
Harold A. Bilby
Charles it. Coombs
Howard D. Crosse
George Garyy
Marcus A. Harris
Alan R. Holmes
Herbert H. Kimball
Robert G. Rouse
Walter H. Rozell, Jr.
Horace L. Sanford
Robert W. Stone
Todd G. Tiebout
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
New York
_2_
Annual
Name
Paul Meek
Donald C. Niles
Arthur H. Noa
John F. Pierce
Everett B. Post
Charles:R. Pricher
John F. Ringen
Edwin S. Rothman
Walter S. Rushmore
Frank W. Schiff
Francis H. Schott
William M. Schultz
Thomas C. Sloane
Kenneth E. Small
George C. Smith
Aloysius J. Stanton
Peter D. Sternlight
Robert C. Thoman
Thomas M. Timlen0 Jr.
Robert Young, Jr. .
Title
Salary
•4444••••••••./.W.41.0
Manager and Assistant Secretary
Manager
Manager
Chief Examiner
Manager
Manager
Manager
Manager
Manager
Manager
Manager
Manager
Assistant Counsel
Manager
Manager
Manager
Manager
Manager
Secretary and Assistant Counsel
Assistant Counsel
$150000
19,000
17,000
17,500
16,000
16,500
17,000
15,000
16,250
18,000
16,500
14,000
17,500
16,750
19,000
15,750
17,500
15,500
15,500
15,000
Buffalo Branch
Insley. B. Smith
Harold M. Wessell
George Jo Doll
Gerald H. Greene
John T. Keane
M. Monroe Myers
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Vice President
Assistant Vice President
Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
26,000
18,000
16,750
14,500
13,500
14,750
Item No. 21
12/20/62
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDREBB OrrICIAL CORRICUPONDENCE
TO THE BOARD
December 20, 1962
CONFIDENTIAL (FR)
Mr. Karl R. Bopp, President,
Federal Reserve Bank of Philadelphia,
Philadelphia 1, Pennsylvania.
Dear Mr. Bopp:
The Board of Governors approves the payment of
salaries to the officers of the Federal Reserve Bank of
Philadelphia for the calendar year 1963, as set forth in
the enclosed schedule. The rates listed are those fixed
by your Board of Directors, as reported in your letters
of October 24 and November 7, 1962.
Since it is noted that Mr. Zell G. Fenner will
d
retire on June 30, 1963, payment of salary to him is approve
only to the date of his retirement.
Your Chairman is being advised in a separate letter
nt
regarding salary payments to you and First Vice Preside
Hilkert.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
Enclosure
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
(
Feeeral Reserve Bank of Philadelphia
Name
Hugh Barrio
John R. Bunting
Joseph R. Campbell
Norman G. Dash
David P. Eastburn
Harry W. Roeder
James V. Vergari
Richard G. Wilgus
Evan B. Alderfer
Clay J. Anderson
Joseph M. Case
Murdoch K. Goodwin
Herman B. Haffner
George J. Lavin
Edward A. Aff
Zell G. Fenner
Ralph E. Haas
Jack H. James
Leonard Markford
G. William Metz
Lawrence G. Murdoch
Fred A. Murray
Henry J. Nelson
Russell P. Sudders
Jack P. Besse
William A. James
Warren R. Moll
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Title
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President and Cashier
Vice President and Secretary
Economic Adviser
Economic Adviser
Chief Examining Officer
Vice President, General Counsel
and Assistant Secretary
General Auditor
Assistant Vice President
and Assistant Secretary
Assistant Vice President
Assistant Vice President
Assistant Vice President
Examining Officer
Examining Officer
Examining Officer
Business Economist
Director of Plant
Assistant Vice Prasident
Assistant Vice President
Assistant Cashier
Personnel Officer
Assistant Cashier
Annual
Salary
$17,000
17,000
19,500
18,000
21,500
17,000
25,000
17,000
16,000
18,000
16,000
18,500
15,000
15,000
14,000
14,000
14,000
13,000
15,000
13,000
11,500
14,000
14,000
13,000
12,000
12,000
13,000
BOARD OF GOVERNORS
OF THE
Item No. 22
12/20/62
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE SOAR,D
December 20, 1962
Mr. Wilbur D. Fulton, President,
Federal Reserve Bank of Cleveland,
Cleveland 1, Ohio.
Dear Mr. Fulton:
The Board of Governors approves the payment of
salaries to the officers of the Federal Reserve Bank of
Cleveland for the calendar year 1963 as set forth in the
enclosed schedule. The rates listed are those fixed by
your Board of Directors as reported in your letters of
November 9, and amended by your letter of December 13, 1962.
For the sake of completeness, the list includes Assistant
Vice President Hoy and Assistant Cashier Miller even though
you were advised earlier of Board approval of their salaries.
It is noted that Messrs. Mills, Crawford, and Emde
will reach retirement age during 1963. Accordingly, salary
payments to them are approved only to the dates of their
retirements.
Your Chairman is being advised in a separate
letter regarding salary payments to you and First Vice
President Thompson.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
Enclosure.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
'st
Federal Reserve Bank of Cleveland
Name
W. Braddock Hickman
Roger R. Clouse
George H. Emde
Edward A. Fink
Fred S. Kelly
Martin ,Morrison
Paul C. Stetzelberger
Elfer B. Miller
Paul Breidenbach
Phillip B. Didham
Elmer F. Fricek
Robert G. Hoover
John J. Hoy
Harry W. Huning
George E. Booth, Jr.
Addison T. Cutler
Maurice Mann
George T. Quast
Donald G. Benjamin
Charles E. Crawford
Anne J. Erste
R. Joseph Ginnane
William Hendricks
Clifford G. Miller
Thomas E. Ormiston
Alvah R. Mills
Lester M. Selby
Title
Senior Vice President
Vice President and Secretary
Cashier
Vice President
Vice President
Vice President
Vice President
General Auditor
Counsel
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Counsel
Special Economist
Senior Monetary Economist
Chief Examiner
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant General Auditor
Assistant Secretary
Annual
Salary
$25,000
20,500
19,000
18,500
16,000
21,000
21,000
16,500
14,500
14,500
15,000
13,000
14,000
13,000
13,500
17,000
15,000
15,000
10,500
12,000
10,500
12,000
11,000
13,000
13,000
11,000
11,000
Cincinnati Branch
Fred 0. Kiel
Phil J. Geers
John Biermahn
George W. Hurst
Walter H. MacDonald
Vice President
Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
21,000
16,000
13,000
13,000
151000
Pittsburgh Branch
Clyde E. Harrell
John A. Schmidt
Paul H. Dorn
Charles E. Houpt
Roy J. Steinbrink
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Vice President
Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
21,000
16,500
13,000
13,000
13,000
•
,
Item No. 23
12/20/62
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 20, 1962.
CONFIDENTIAL (FR)
Mr. Alonzo G. Decker, Jr., Chairman,
Federal Reserve Bank of Richmond,
Richmond 13, Virginia.
Dear Mr. Decker:
The Board of Governors approves the payment of
salaries to the officers of the Federal Reserve Bank of
Richmond for the calendar year 1963, as set forth in the
enclosed schedule. The rates listed are those fixed by
your Board of Directors, as reported in your letter of
November 8, 1962.
You have been advised in a separate letter regarding salary payments to President Wayne and First Vice
President Heflin,
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
Enclosure.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Fderal Reserve Bank of Richmond
Name
P. Black
Martin
J
Nosker
m.
Nowlan
u. Ratchford
Snead,
G. Deitrick
4, G
04, 8. Dickerson, Jr.
Farmer
Ford
E, Sanders,
Jr.
S, p
Fishburne
J. co Harrison, III
Horigan
Parthemos
V,
Pregeant, ITI
J.
B p. Viverette
L Schad
ri • Allin, Jr.
.L ' B. Beavers
E
4, L. Friend
A, v: Miller
WYthe Myers, Jr.
B. Wakeham
.
,
F.
Title
Vice President
Vice President
Vice President
Vice President and Cashier
Vice President and Senior Adviser
General Auditor
Assistant Vice President
Vice President
General Counsel
Assistant Vice President
Vice President
Assistant Vice President
Assistant Vice President
Chief Examiner
Assistant Vice President
Assistant Vice President
and Secretary
Assistant Vice President
Assistant General Auditor
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
Annual
Salary
$17,000
20,000
18,500
20,000
25,000
.18,500
15,000
16,000
16,000
16,000
16,000
13,000
13,000
13,500
13,000
14,000
13,500
11,000
10,500
11,500
12,000
12,000
12,000
11,500
Baltimore Branch
F• Hagner
A•
Stewart, Jr.
• Ili,
Armstrong
▪ R,
A' O. Jones, Jr.
Wienert
Vice President
Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
20,000
17,500
11,000
13,000
12,000
Charlotte Branch
Z. F.
Mae Donald
A. L'
a_ gon
I,' W.
*i O. Keller
Krueger, Jr.
Mondy
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Vice President
Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
19,000
16,500
11,000
11,000
12,000
BOARD OF GOVERNORS
mN. 24
OF THE
111/20.2
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
A0ORESEI OFFICIAL CORRF.SPONDENCE
TO THE BOARD
Denbtr
20, 1962
CONFIDENTIAL (FR)
Mr. Malcolm Bryan, President,
Federal Reserve Bank of Atlanta,
Atlanta 3, Georgia.
Dear Mr. Bryan:
The Board of Governors approves the payment of
salaries to the officers of the Federal Reserve Bank of
Atlanta for the calendar year 1963, as set forth in the
enclosed schedule. The rates listed are those fixed by
your Board of Directors, as reported in your letter of
November 9, 1962. For the sake of completeness, the list
includes the names of three newly appointed officers,
Assistant Cashiers Millsaps, Branan, and Hingst, even
though you were advised earlier of Board approval of their
salaries.
It is noted that Mr. I. H. Martin will reach
of
retirement age in February 1963. Accordingly, payment
retirehis
of
date
the
to
only
d
approve
is
salary to him
ment.
Your Chairman is being advised in a separate
Vice
letter regarding salary payments to you and First
President Patterson.
Very truly yours,
l'AP11)
.‘.t.t. SIM/WM
Merritt Sherman,
Secretary.
Enclosure.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Federal Reserve Bank of Atlanta
Title
Name
J. E. McCorvey
Brown R. Rawlings
J. E. Denmark
Lloyd B. Raisty
Charles T. Taylor
DeWitt Adams
M. Stephenson
Harry Brandt
George W. Sheffer
Bvri E. Howard
boudell Brown, Jr.
George Hibbert
C. nason Ford
Zdgar M. Valletta
J. T. Harris
F. R. Martin
Fred I. Brock
Jeffrey Wells
James B. Forbes
Basil A. Vapensky
,red Millsaps
H. Martin
Carson Branan
'Eric Hingst
President and Cashier
President
President
President
President and Director
of Research
General Auditor
Assistant Vice President
Assistant Vice President
Chief Examiner
Assistant Vice President
Assistant Vice President
Assistant Counsel
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Cashier
Assistant Cashier
Assistant General Auditor
Assistant Cashier
Assistant Cashier
Assistant Vice President
Assistant Cashier
Assistant Cashier
Vice
Vice
Vice
Vice
Vice
Annual
Salary
$210000
19,500
17,600
16,000
16,750
15,750
15,750
15,000
15,000
14,250
14,000
13,000
12,000
12,500
12,500
11,000
10,600
10,500
11,250
10,500
11,000
10,500
10,500
10,000
Birmingham Branch
Henry C. Frazer
C. Rainey
1411
" A. Waller, Jr.
Thomas
Marvin Stewart
Vice President
Assistant Vice President
Cashier
Assistant Cashier
Assistant Cashier
16,500
15,200
11,500
10,000
9,500
Jacksonville Branch
!.
t A. Lanford
T.C. Clark
vestus Crow
8illy Hargett
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Vice President
Assistant Vice President
Cashier
Assistant Cashier
19,500
13,500
12,750
10,500
Nashville Branch
. E. Moody, Jr.
14. H. Sewell
L. W. Starr
Stuart H. Magee
Vice President
Assistant Vice President
Cashier
Assistant Cashier
$200000
15,400
11,500
9,500
New Orleans Branch
Morgan L. Shaw
Theodore Walter
L. Y. Chapman
R. M. Junca
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Vice President
Assistant Vice President
Assistant Vice President
Assistant Cashier
20,000
14,500
13,500
10,000
BOARD OF GOVERNORS
„oiltntt*q
OF THE
c,`"'"ip C20 001,
r,
FEDERAL RESERVE SYSTEM
Item No. 25
12/20/62
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONOENCE
TO THE 130ArD
:*ti
rtkiSt74
December 20, 1962.
CONFIDENTIAL (FR)
Mr. Charles J. Scanlon, President,
Federal Reserve Bank of Chicago,
Chicago 90, Illinois.
Dear Mr. Scanlon:
The Board of Governors approves the payment of
salaries to the officers of the Federal Reserve Bank of
Chicago for the calendar year 1963, as set forth in the
enclosed schedule. The rates listed are those fixed by
your Board of Directors, as reported in your letter of
November 8, 1962.
For the sake of completeness, the list includes
the names of two newly appointed officers, Senior Economists
Cloos and Stiles, even though you were advised earlier of
Board approval of, their salaries.
Your Chairman is being advised in a separate letter
payments to you and First Vice President
g
salary
regardin
Helmer.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
Enclosure
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Federal Reserve Bank of Chicago
Name
E. T. Baughman
C. E. Bierbauer
H. C. Buell
J. J. C4ouch
George W. Cloos
L. A. Davis
L. L Dawson
F. A. Dons
D. M. Doyle
F. C. Edler
J. J. Endres
E. 0. Fults
L. A. Gohr
A. M. Gustayson
V. A. Hansen
E. A. Heath
P. C. Hodge
W.
L.
E.
C.
VT,
0.
H.
K.
T.
J.
Hume
Jones
Kroll
Laibly
Larson
R. A. Moffatt
J. R. Morrison
H. J. Newman
L. M. Ross
K. A. Scheld
H. S. Schultz
B. L. Smyth
R. E. Sorg
J. J. Srp
IlYnn A. Stiles
G. T. Tucker
C. W. Weiskopf
C. G. Wright
Title
Vice President
Assistant Vice President
Assistant Chief Examiner
Assistant Cashier
Senior Economist
Assistant Cashier
Assistant Cashier
Assistant General Auditor
Assistant Cashier
Assistant Cashier
General Auditor
Assistant Vice President
Assistant Cashier
Vice President
Assistant Cashier
Assistant Vice President
and Assistant Secretary
Vice President, General Counsel
and Secretary
Assistant Cashier
Vice President and Cashier
Assistant Cashier
Vice President
Assistant Counsel and Assistant
Secretary
Vice President
Chief Examiner
Vice President
Vice President
Assistant Cashier
Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
Senior Economist
Assistant Vice President
Assistant Chief Examiner
Assistant Vice President
Annual
Salary
$23,000
16,000
12,500
10,000
15,500
14,000
13,000
16,500
11,500
9,500
23,000
15,000
12,500
20,000
12,000
15,000
24)
000
12,000
21,000
11)
500
21,000
15,000
16,000
14loo0
20,000
18,000
12,000
19,500
19,000
13,000
14,000
14,500
16,000
14,000
12,500
Detroit Branch
R.
P.
G.
L.
lir.
R.
W.
c.
W.
J.
G.
A.
Bloomfield
Carey
Lamphere
Purol
Rickel
Swaney
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Assistant Vice President
Assistant Cashier
Assistant General Counsel
Assistant Cashier
Assistant Cashier
Vice President
16,250
12,000
16,250
8,000
12,000
22,000
0):15-4:4
BOARD OF GOVERNORS
Item No. 26
12/20/62
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADORERS
orrtciAL
CORRESPONDENCE
TO THE EIOARO
44*
December 20) 1962
CONFIDENTIAL (FR)
Mr. Harry A. Shuford, President,
Federal Reserve Bank of St. Louis,
St. Louis 66, Missouri.
Dear Mr. Shuford:
The Board of Governors approves the payment of
l Reserve Bank of
salaries to the officers of the Federa
as set forth in the
St. Louis for the calendar year 1963,
those fixed by
enclosed schedule. The rates listed are
your letter of
your Board of Directors as reported in
November 9, 1962.
es
For the sake of completeness, the list includ
l
ant
Counse
Assist
and
the names of General Counsel Dunne
d earlier of Board
Russell, even though you were advise
approval of their salaries.
Your Chairman is being advised in a separate
you and First Vice
letter regarding salary payments to
President Francis.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
Enclosure.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis
Title
Name
Vice President and Secretary
Vice PresidentVice President
Vice President
Vice President
General Auditor
Vice President
Assistant Vice President
Adviser
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
Planning Officer
Assistant Vice President
Chief Examiner
General Counsel and Assistant
Secretary
John J. Hofer
Assistant Vice President
Assistant Vice President
Janes M. Geiger
Assistant Vice President
George W. Dennison
Assistant Vice President
Richard O. Kaley
9.1.1 H. Chapin
Assistant Chief Do - ner
Assistant Chief Examiner
,J,oseph C. Welman, Jr.
v. Garland Russell, Jr. Assistant Counsel
Assistant Vice President
William E. Walker
Howard H. Weigel
Joseph C. Wbtawa
pale M. Lewis
Homer Jones
Marvin L. Bennett
George W. Hirshman
Orville O. Wyrick
earl R. Billen
William J. Abbott
Willis L. Johns.
Stephen Koptis
Can T. Ant
Norman N. Bowsher
Woodrow W. Gilmore
Paul Salzman
Wilbur H. Isbell
Gerald T. Dunne
Annual
Salary
$23,000
20,500
22,000
21,000
18,500
18,500
20,000
16,500
17,500
16,000
16,000
16,000
14,500
15,000
15,000
16,000
16,000
13,500
114,000
12,000
13,000
13,000
11,000
11,000
11,000
Little Rock Branch
Vice President and Manager
Cashier
Assistant Cashier
Assistant Cashier
Fred Burton
John F. Breen, Jr.
John K. Ward
Howard J. Jensen
18,500
12,500
9,500
8,500
Louisville Branch
bonald L. Henry
John W. Menges
Clarence J. Woertz
Louis A. Nelson
H. Francis DeVbs
eniamin B. Monaghan
!
1. Black, Jr.
Joseph P. Garbarini, Sr.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Vice President and Manager
Cashier
Assistant Cashier
Assistant Cashier
20,500
13,500
10,500
10,000
Memphis Branch
Vice President and Manager
Cashier
Assistant Cashier
Assistant Cashier
18,500
12,500
9,500
9,500
Item NO. 27
12/20/62
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 20, 1962.
CONFIDENTIAL (FR)
Mr. Frederick L. Deming, President,
Federal Reserve Bank of Minneapolis,
Minneapolis 2, Minnesota.
Dear Mr. Deming:
the payment of
The Board of Governors approves
e Bank of
l
Reserv
Federa
salaries to the officers of the
set
forth in
as
1963,
Minneapolis for the calendar year
fixed
those
are
listed
rates
the enclosed schedule. The
of
your
in
letter
ed
report
by your Board of Directors, as
,
the
teness
list
comple
of
. November 8, 1962. For the sake
ted officers,
includes the names of two newly appoin
Bjork, even though
and
ler
Dreitz
Assistant General Auditors
of their salaries.
al
approv
Board
you were advised earlier of
Vice President Ohnstad
It is noted that Assistant
1963, and therefore,
1,
March
is scheduled to retire as of
to the date of
only
ed
approv
payment of salary to him is
his retirement.
Your Chairman is being advised in a separate
to you and First Vice
letter regarding salary payments
President Mills.
Very truly yours,
(Signed) Merritt Sherman.
Merritt Sherman,
Secretary.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Federal Reserve Bank of Minneapolis
Name
I!' G. McConnell
H. Strothman, Jr.
".111. Groth
K. Possum
L. Parsons
K. Grobei
J. McNulty
A.11.
Johnson
ii. B.
Holmgren
41 E.
Lysen
F. Litterer
P. Olin
.'
01 J. Gillette
J. Cramer
Ohnstad
0. Beeth
nu. A. MacDonald
B. Bergquist
L. Knous
C. Bronner
I A. OtBrien
!.
O. Sather
Title
Vice President and Secretary
Vice President and General Counsel
Vice President and Cashier
Vice President
Vice President
Chief Examiner
General Auditor
Vice President
Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
Annual
Salary
$22,500
21,500
19,000
18,000
18,750
17,000
16,000
18,000
15,500
14,500
14,500
11,500
12,500
13,500
12,250
10,500
12,500
10,500
11,500
11,500
11,500
10,000
Helena Branch
)
Co" A. VanNice
W. Worcester
v• L. Heath
Vice President
Assistant Cashier
Assistant Cashier
16,000
11,500
10)000
!
.11 :LA2pointments
1
(Head Office)
4
r,L1Ph J. Dreitzler
'
11rI8topher Bjork
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Assistant General Auditor
Assistant General Auditor
13,000
12,000
Item No. 28
12/20/62
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 20, 1962.
CONFIDENTIAL (FR)
Mr. Homer A. Scott, Chairman,
Federal Reserve Bank of Kansas City,
Kansas City 6, Missouri.
Dear Mr. Scott:
The Board of Governors approves the payment of
l Reserve Bank of
salaries to the officers of the Federa
1963, as set forth in
Kansas City for the calender year
are those fixed
the enclosed schedule. The rates listed
your letter of
in
ed
report
by your Board of Directors, as
November 6, 1962.
t,
It is noted that Messrs. Cravens, Debus, Pucket
Accord
1963.
during
age
ment
and Doran will reach retire
approved only to the
ingly, salary payments to them are
dates of their retirements.
You have been advised in a separate letter reClay and First Vice
garding salary payments to President
President Koppang.
Very truly yours,
(Signed) Merritt Sherman
1
Wrritc Sherman,
Secretary.
Enclosure.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Federal Reserve Bank of Kansas City
Name
Clarence W. Tow
John T. Boysen
C. A. Cravens
J. R. guans
F. H. Larson
L. F. Mills
J. T. White
Wilbur T. Billington
D. R. Cawthorne.
Ray J. Doll
William H. Leedy
W. F. Fairley
Geo, D. Royer, Jr.
Marvin L. Mothersead
John W. Snider
J. C. Craig
R. E. Thomas
Stanley Andrews
John N. Blair
T. F. Brauninger
Carl F. Griswold
Wayne W. Martin
Title
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President
Senior Economist
Senior Economist
Senior Economist
General Counsel and Secretary
General Auditor
Chief Examiner
Director of Personnel
Cashier
Assistant Vice President
Assistant Vice President
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cshier
Assistant Cashier
Annual
Salary
$24,500
21,000
13,200
14,600
13,500
18,600
13,500
17,000
18,200
18,000
15,000
15,000
13,200
12,500
13,500
11,400
11,200
10,000
10,000
10,000
10,000
11,000
Denver Branch
Cecil
H. L.
J. R.
H. F.
Puckett
Stempel
Zahourek
Krebs
Vice President
Cashier
Assistant Cashier
Assistant Cashier
19,000
13,800
11,700
11,100
Oklahoma City Branch
H.
F.
B.
W.
W.
W.
P.
J.
Fritz
Alexander
Farley
Milburn, Jr.
Vice President
Cashier
Aasi3tant Cashier
Assistant Cashier
18,500
14,200
12,300
11,000
Omaha Branch
P.
G.
W.
W.
A.
G.
P.
L.
Debus
Rankin
Doran
Pleiss
Vice President
Cashier
Assistant Cashier
Assistant Cashier
21,000
13,400
11,600
10,600
I/ The Reserve Bank subsequently advised that the salary fixed for
Mr. Blair should have been stated by the Bank as $10,600,
representing no change in Mr. Blair's present salary.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 29
12/20/62
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 20, 1962.
CONFIDENTIAL (FR)
Mr. Watrous H. Irons, President,
Federal Reserve Bank of Dallas,
Dallas 2, Texas.
Dear Mr. Irons:
the payment of
The Board of Governors approves
ve Bank of
al
Reser
Feder
the
salaries to the officers of
in the
set
forth
as
1963,
Dallas for the calendar year
by
fixed
those
are
d
liste
enclosed schedule. The rates
r
of
lette
your
in
ted
repor
your Board of Directors, as
November 9, 1962.
ate
Your Chairman is being advised in a separ
Vice
First
and
you
to
nts
payme
y
letter regarding salar
President Coldwel.l.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
Enclosure.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Federal Reserve Bank of Dallas
Name
G. R. Murff
T. A. Hardin
T. W. Plant
A. H. Lang
James L. Cauthen
Ralph T. Green
George F. Rudy
Thomas R. Sullivan
James A. Parker
W. M. Pritchett
J. Z. Rowe
James 0. Russell
Robert H. Boykin
Fredric W. Reed
E. A. Thaxton„ Jr.
E. H. Berg
Leon W. Cowan
E. W. Vorlop, Jr,
Title
Vice President and Secretary
Vice President
Vice President and Cashier
General Auditor
Vice President
Vice President
General Counsel
Vice President
Vice President
Vice President
Director of Research
Chief Examiner
Assistant Counsel and
Assistant Secretary
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Vice President
Assistant Cashier
Annual
Salary
$20,500
19,000
19,000
18,000
17,500
17,500
16,500
15,500
15,000
14,100
13,000
12,500
12,000
12,000
12,000
11,200
10,300
8,000
El Paso Branch
Roy E. Bohne
T. C. Arnold
Forrest E. Coleman
Vice President
Cashier
Assistant Cashier
13,000
10,500
8,000
Houston Branch
J. L.
B. J.
W. C.
Rasco
Cook
Troy
Hartung
R. Story
Vice President
Cashier
Assistant Cashier
Assistant Cashier
24,500
11,750
10,000
11,000
San Antonio Branch
Carl H. Moore
A. E. Mundt
Alvin E. Russell
Frederick J. Schmid
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Vice President
Cashier
Assistant Cashier
Assistant Cashier
18,500
11,600
11,000
9,500
Item No. 30
12/20/62
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS orrmiAL CORRESPONDENCE
TO THE BOARD
December 20, 1962.
CONFIDENTIAL (FR)
Mr. F. B. Whitman, Chairman,
Federal Reserve Bank of
San Francisco,
San Francisco 20, California.
Dear Mr. Whitman:
The Board of Governors approves the payment of
salaries to the officers of the Federal Reserve Bank of
San Francisco for the calendar year 1963, as set forth
in the enclosed schedule. The rates listed are those
fixed by your Board of Directors, as reported in your
letter of November 7, as amended by President Swan's letter
of December 6, 1962.
You have been advised in a separate letter regarding salary payments to President Swan and First Vice
President Hemmings.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
Enclosure.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Federal Reserve Bank of San Francisco
Name
A. B. Merritt
J. L. Barbonchielli
P. Wr, Cavan
E. H. Galvin
W6 F. Scott
G. D. Hartlin,
J. F. Ahlf
G. Wr, Lynn
E. J. Martens
R. Maurer, Jr.
T. wr. Barrett
E. E. Bernstein
W. L. Cooper
W. G. DeVries
E. Livingston '
R. E. McKendry
R. G. Retallick
E. A. Wells
J. B. Williams
C. H. Whitworth
Title
Vice President
Vice President
Vice President
Vice President
General Counsel
General Auditor
Chief Examiner
Assistant Vice President
Cashier
Assistant Vice President
Assistant Cashier
Assistant Cashier
Assistant General Counsel
Assistant Cashier
Assistant Cashier
Assistant General Auditor
Assistant Cashier
Assistant Cashier
Assistant Cashier
Administrative Assistant
Annual
1418_1
a
$22-;0160
15,000
14,000
18,000
15,000
17,000
131000
13,750
13,000
14,000
11,250
9,500
12,500
11,500
9,500
12,500
10,500
11,500
11,500
11,500
Los Angeles Branch
C. H. Watkins
13. M. Davenport
J. R. Robinson
W. E. Carter
M. A. Jones
G. R. Kelly
G. D. Parker
Vice President and Manager
Vice President
Assistant Manager
Assistant Manager
Assistant Manager
Assistant Manager
Assistant Manager
20,000
16,000
12,000
11,250
11,000
9,500
11,750
Portland Branch
J. A. Randall
W.
M. Brown
• K. Grimm
R. Skinner
Vice President and Manager
Assistant Vice President
Assistant Manager
Assistant Manager
18,000
12,250
11,500
10,000
Salt Lake City Branch
4, L.
T. M.
H
4.Al.• C.
• G.
Price
Simmons
Dunn
Holman
Vice President and Manager
Assistant Vice President
Assistant Manager
Assistant Manager
17,000
13,000
10,000
11,500
Seattle Branch
R. Barglebaugh
R. Sandstrom
It,
P. Glascock
41 for
C.FRASER
Digitized
Laiti
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Vice President and Manager
Assistant Vice President
Assistant Manager
Assistant Manager
20,000
140000
12,000
10,000
@FedFRASER