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9 Minutes for TO: Members of the Board From: Office of the Secretary December 21) 1961 Attached is a copy of the minutes of the Board of Governors of the Federal Reserve System on the above date. It is not proposed to include a statement vith respect to any of the entries in this set of minutes in the record of policy actions required to be maintained pursuant to section 10 of the Federal Reserve Act. Should you have any question with regard to the minutes, it will be appreciated if you will advise the Secretary's Office. Otherwise) please initial 1?elow. If you were present at the meeting, your Initials will indicate approval of the minutes. If You were not present, your initials will indicate Only that you have seen the minutes. Chm. Martin Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. King Gov. Mitchell Minutes of the Board of Governors of the Federal Reserve System on Thursday, December 21, 1961. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. The Board met in the Board Room at 10:00 a.m. Martin, Chairman Balderston, Vice Chairman Mills Robertson King Mitchell Sherman, Secretary Kenyon, Assistant Secretary Molony„ Assistant to the Board Fauver, Assistant to the Board Hackley, General Counsel Farrell, Director, Division of Bank Operations Mr. Solomon, Director, Division of Examinations Mr. Hexter„ Assistant General Counsel Mr. O'Connell, Assistant General Counsel Mr. Conkling, Assistant Director, Division of Bank Operations Mr. Masters, Associate Director, Division of Examinations Mr. Hostrup, Assistant Director, Division of Examinations Mr. Leavitt, Assistant Director, Division of Examinations Mrs. Semia, Technical Assistant, Office of the Secretary Mr. Collier, Chief, Current Series Section, Division of Bank Operations Mr. Thompson, Supervisory Review Examiner, Division of Examinations Mr. Mr. Mr. Mr. Mr. Mr. Items circulated to the Board. The following items, which had eireulated to the members of the Board and copies of which are A nl, -"""eld to these minutes under the respective item numbers indicated, ere , : ,122/2Ilts1 unanimously: 12/21/61 -2Item No. 1N,etter to The Chase Manhattan Bank, New York, ew York, approving an extension of time to eslitaish a branch at 3 South Central Park Avenue, Town of Greenburgh. Letter to the Comptroller of the Currency ' l ecommending favorably with respect to an IlDralcation to organize a national bank at 2flee, Florida, subject to a question in 'egard to management. 2 Letter to The Citizens National Bank of Aleeellville, Russellville, Kentucky, approving 1 3 application for fiduciary powers. 3 tter to First National Bank in Loveland, Colorado, approving its application fiduciary powers. 4 Letter to Farmers and Merchants Bank, Marianna, 111.11eas, waiving the requirement of six months' : a r,"ce of withdrawal from membership in the e° "'ral Reserve System. 5 1.°\reland, E2port on competitive factors (Charlotte-Sylva, North Carolina). Th4 -re had been distributed to the Board a draft of report to the Comptroller the Currency on the competitive factors involved in the proposed merger Of The Jackson County Bank, Sylval North Carolina, into First Union Nat. -mial Bank of North Carolina, Charlotte, North Carolina. Agreement having been expressed with certain changes suggested 13t Governor Mills, the report was approved unanimously for transmittal to the comPtroller in a form in which the conclusion read as follows: . There is no evidence that applicant banks compete, and only Minor, if any, adverse competitive effects seem probable as a result of the proposed merger; however, it would increase the 12/21/61 -3- trend in North Carolina toward concentration of banking resources in a few large banks. Electronic processing equipment (Items 6-8). There had been distributed to the members of the Board a memorandum from the Division of 1, allA. Operations dated December 151 1961, relating to proposals of the Federal Reserve Banks of Richmond, Atlanta, and Dallas to acquire electronic er)InPuters. The Richmond Bank also proposed to acquire Burroughs B-270 electronic check processing equipment. As to the computers, Atlanta had decided to rent with option to purchase. Richmond and Dallas had not yet cl"'ided whether to rent with option to purchase or to purchase outright; PN) osed letters to those Banks would request advice when that decision had 1111Tade. Similarly, Richmond had not yet made a decision whether to l'elltthe check processing equipment with option to Purchase or to purchase c4It'right. In discussion, Governor Mitchell noted that the configuration of th e IBM 1401 computer proposed to be acquired by Richmond included disk Stor age, whereas the proposed Atlanta and Dallas acquisitions would call fo 'ape units and storage cores. It was his understanding that the latter type of equipment had come to be generally preferred. After some discussion of this point, Governor Robertson suggested that the NO:e a thought be expressed to the Richmond Bank that it might want to further check, including consultation with other Reserve Banks, beror e reaching a decision as between the two types of equipment, and 4 it Q...PXYAr , 12/21/61 it Was -4- understood that the matter would be taken up with the Richmond Bank on such basis. Subject to this understanding, the proposed acquisitions at the three Banks were noted without objection, it being understood that the Richmond and Dallas Banks would be asked to advise the Board when they had reached a decision as between outright purchase and rental with purchase (113ticil. Attached are copies of (1) the letter sent to the Richmond Bank (2) the telegram sent to the Atlanta Bank (Item No. 7); 44d the letter sent to the Dallas Bank (Item No. 8) pursuant to the r°1'egoing action. Amendments to Bank Holding Company Act. There had been distributed to the members of the Board a memorandum from the Legal Division dated December 18, 1961, submitting a draft of material relating to the Bank g Company Act proposed for inclusion in the Board's Annual Report ror 1961. 111a1 The material was generally in line with that included in the Report for 1960. In addition to referring to the amendments Ngested in the Board's special report of May 7, 1958, which would continue to 1., "e recommended with one exception, the draft material would emphasize the desirability of amendment of the Act in three respects: (1) elimination "the exemption accorded to a company registered under the Investment C°1111344Y Act of 1940 before May 15, 1955; (2) repeal or amendment of 4eticn 6 of the Act; and (3) repeal of the "holding company affiliate" l'Ir'"isions of the Banking Act of 1933 and amendment of the "affiliate" 12/21/61 laws along the lines indicated in the Board's 1958 special report. In discussion, Governor Robertson suggested (1) a brief statement I-lithe Annual Report reiterating previous proposals of the Board for alilendment of the law, and (2) the preparation of specific draft legislation that the Board would seek to have introduced at the forthcoming session O' the Congress. After Chairman Martin had expressed agreement with this suggestion, G°11ernor Mills commented to the effect that the inclusion of controversial in an omnibus bill might result in failure of the entire bill. He le° expressed the opinion that it was important to press for the enactment of legislation that would bring so-called one-bank situations "in the purview of the Bank Holding Company Act. In further discussion, Mr. Hexter brought out that draft legislation Ilae to a large extent already in hand, having been prepared both in eclinection with the Board's 1958 special report and the amendments proposed Illthe Board's 1960 Annual Report. Governor Mills then suggested the possibility of having two bills 4'ced, one containing relatively noncontroversial amendments to the ' -441g Company Act and the other relating to items such as the so-called °Ile-bank cases. After some discussion as to how the provisions of draft legislation elating to one-bank cases might be worded, Chairman Martin suggested that the Legal Division be requested to bring together for the Board's 141. ‘ 12/21/61 —6— e°11sideration drafts of an omnibus bill and of proposed amendments to the 1831 relating to one-bank cases and the three subjects that had been s'Pecifically mentioned in the Board's Annual Report for 1960. The Board could then consider seeking to have proposed legislation introduced at the forthcoming session of the Congress. No objection being indicated, it was agreed to proceed in such rrianner. Mr. Hostrup then withdrew from the meeting. an .citr_InistconNo.9). l I_A], iltalLe...:_toi-Lzi2LstNati2.L In of certain questions raised by Governor Mitchell at the meeting on tecember 131 1961, consideration of an application by The First National CitYTrust Company, New York, New York, for permission to carry reduced 48erve3 had been deferred. Governor Mitchell stated that he had inquired further into the Ikatter but remained of the opinion that the request should not be granted. 4tter noting the close tie-in between subject bank and The First National eir Bank of New York, he went on to say that the character of the business e°11411cted by the trust company--a trust-type business--was similar to that conducted by very large banks and that the current central reserve eitYbank classification seemed to him appropriate. Governor Robertson agreed, stating that he thought the Board 11111St look through form to substance. He described the applicant bank as a little finger of the large institution (First National City Bank) 12/21/61 -7- and expressed the view that the banks must be considered together rather than separately. Mr. Farrell then commented on the history of the trust company and the make-up of the $24 million of demand deposits held by it. He tincierstood Mr. Hackley to feel that it was doubtful from a legal standpoint whether the fact that two banks were affiliated was a sufficient basis for vithholding approval of a request to carry reduced reserves that presumably /1°111(1 otherwise be granted. Turning to the character of business conducted bY the trust company, Mr. Farrell said that the institution reportedly had not opened a new checking account since 1929. tim The funds listed as deposits represented trust funds awaiting investment on which no interest was paid. By any criteria the Board had considered to date, the trust company—were it not affiliated with a large national bank-PParently would be eligible to carry reduced reserves. Mr. Hackley said he felt that denial of a request for permission to carry reduced reserves solely on the ground that the applicant bank ' lrs affiliated with a large bank might be subject to serious legal question. slIch relationships were taken into account, it might be said, for e)tax11131-e, that if a bank holding company controlled a large city bank and -uall suburban bank, the latter should be refused permission to carry "teed reserves. However, it might be that in this case the national '\ and the trust company were so closely intertwined that some argument `4 be made that this relationship affected the Character of business °r the trust company. 12/21/61 -8- Governor Mitchell commented that the requests granted in the Chicago area had been for banks that did not have the same kind of customers, by and large, as First National City Trust Company. In this Particular case, it seemed to him that the trust company was doing the kind of business done generally by large banks. In terms of total deposits arid the size and character of business of the institution, it seemed to hiztl that the current classification for reserve purposes was warranted. Governor Mills recalled that in the course of the Board's e°11sidsration of criteria for the classification of cities for reserve 1111:1°ses he had consistently taken the position that the formula should be geared to gross rather than demand deposits. However, the choice of the majority of the Board was to turn to demand deposits. As to the elll'rent request, he would favor approval. The trust company's demand deP"its were of little consequence; and its time deposits represented 1\111cis awaiting investment by the trust department. Governor King indicated that he would favor approval of the l'ecluest. He thought it was not necessary, in a case of this kind, to into matters such as relationships of the applicant bank to other ill8tit4Ltions. Such a procedure might, in his opinion, involve undue dirt, 4-culties in reaching determinations in individual cases. Governor Balderston said the point raised by Mr. Hackley was essive to him. He inquired whether it appeared likely, as a practical ' 411)1 Illattel', that banks might set up affiliated trust companies to obtain the _9_ 12/21/61 advantage of lower reserve requirements, and Governor Mills commented that he would doubt this very much. Governor Balderston then said that hewould favor approval of the current request. The request of First National City Trust Company was then approved, G°11ernors Robertson and Mitchell dissenting. A copy of the letter sent to the applicant trust company pursuant to this action is attached as Iteni No. 9. Messrs. Conkling and Collier then withdrew from the meeting. Morgan New York State Corporation. With reference to the brief berig filed by Morgan New York State Corporation in supplementation of its (141 presentation on December 71 19611 concerning its application for Plprolral of action to become a bank holding company, Mr. O'Connell reported that a representative of the applicant had raised yesterday the question Illiether the Board would be willing to receive certain information in eclifidence. Apparently, Morgan wished to make a point in the brief e°4cerning the inadequacy of capital of some of the banks the stock of Ilhich it would propose to acquire. In this connection, it intended to 41)131Y the New York Reserve Bank's form of capital analysis and show the l'estilte in chart form, but felt that the chart presentation should not be 'flatle public. After consideration of the matter, during which it was pointed that information such as proposed to be included in the brief was alre adY available within the Federal Reserve System, the suggestion was 12/21/61 -10- I1lade by Governor Robertson that Morgan be advised informally that whatever it decided to include in its brief would be part of the public record, but that the Federal Reserve might be presumed to have an awareness of the eqdtal situation of the banks involved and would apply whatever analysis it deemed appropriate. There was general agreement with this suggestion, and it was Illcierstood that Morgan would be informed to such effect. Applications for approval of proposed mergers. With reference to the aPPlication of The Chase Manhattan Bank, New York, New York, for Perllission to acquire by merger a Long Island bank, on which an oral Presentation was scheduled to be held on January 19, 1961, Mr. O'Connell l'ePorted receipt of a letter from counsel for the applicant bank requesting °Pies of the reports on competitive factors submitted to the Board by the 0th er Federal bank supervisory agencies and the Department of Justice. Mr. 0 cninell said he anticipated that a similar request would be received c)1 Chemical Bank New York Trust Company with reference to its proposed er With a Long Island bank, on which an oral presentation also had beey, " scheduled for January 19. He said it was the consensus of views in the Legal Division that the Board's best interest would be served by t1411. lshing copies of the competitive factor reports so that the applicant 8 might study those reports in preparing their comments at the oral 14'ese ntations. He noted that the Comptroller of the Currency had followed 'rnllar practice in connection with a recent hearing and had indicated 12/21/61 -11- intention to follow such a procedure in the future; the Board had acceded to the Comptroller's request for extra copies of its reports to him on competitive factors. However, the Board previously had rejected reqUeSt of Wells Fargo Bank American Trust Company, San Francisco, for copies of the competitive factor reports submitted to the Board in °°11nection with a merger application of that bank. In discussion of the matter, Governor Mills indicated that he w°1-11c1 have some concern about releasing competitive factor reports in hetrentirety. Such reports might contain references to data of a ccInadential nature, and the possibility of their release might have an inhibiting effect. In preparing such reports, the agencies concerned nlight not feel as free to express opinions they derived from consideration of the material at their disposal. MT. Solomon indicated that, absent other considerations, he would be 4_ -Luclined to favor the principle of not releasing competitive factor To do so might discourage freedom of expression in the reP°1"ts. 1.117eParation of such reports. been However, with public attention having drawn to the procedure announced by the Comptroller, Mr. Solomon telt that the Board might have more to gain, on balance, than to lose g4ing such reports freely available. Comments by members of the Board, other than the reservations Noreased by Governor Mills, were favorable to complying with the request or cl,_ uase Manhattan, and any similar request made by Chemical. However, 12/21/61 -12- it was felt that a check should be made with the agencies that had furnished the reports in question to determine whether they would have 4111 objection. Accordingly, Governor Mills' reservations having been noted, it was understood that a check would be made with the reporting agencies and that the competitive factor reports would be furnished to the applicant banks if such agencies indicated no objection. Orders in connection with merger applications. Reference was slade to orders, statements, and dissenting statements in process of 14"ePax'ation in reflection of the Board's decisions with respect to pending m"ger applications of Wells Fargo Bank American Trust Company, San ?rahoisco, and Fifth Third Union Trust Company, Cincinnati. As to the 14118 Fargo (Santa Cruz) case, Governor Mitchell said that he would lew the dissenting statement before leaving today, while Chairman Ma-rtin and Governor King indicated that they would be agreeable to the l'eleaee of the majority statement in a form satisfactory to Governor Mills. 48 to the Fifth Third Union (Norwood-Hyde Park) case, Governor Mitchell stated that he was satisfied with the revised draft of majority statement that -,d now been prepared, while Chairman Martin and Governor King ic ated that they would be agreeable to the release of the majority tat t in such form. All of the members of the staff except Messrs. Sherman and Fauver the, '4. withdrew from the meeting. 4' 12/21/61 -13- Appointment of directors. The Board authorized the appointment of Herbert Deuel Armstrong, Treasurer, Standard Oil Company of California, San Francisco, as a Class C director of the Federal Reserve Bank of San Emcisco for the three-year term beginning January 1, 1962, subject to ascertainment through Chairman Whitman that Mr. Armstrong would accept the appointment if tendered. The Board also authorized Governor Mills to discuss with Chairman Whitman the matter of the appointment of a DeNtY Chairman of the Federal Reserve Bank of San Francisco for the Year 1962, with the understanding that Governor Mills would determine in the light of his discussion with Mr. Whitman whether Mr. John D. Fredericks, a Class C director living in Los Angeles, or Mr. Armstrong should be appointed Deputy Chairman and with the further understanding that on the basis of Governor Mills' determination the appointment of DePutY Chairman would be made. Secretary's Note: It was subsequently ascertained that Mr. Armstrong would be unable to accept the appointment as Class C director. It having been ascertained that J. T. Menzies, Jr., would be unable to a ccept reappointment, the Board authorized the appointment as a director t he Baltimore Branch of the Federal Reserve Bank of Richmond of Leonard C. We, Jr., President and Treasurer, Maryland Fine & Specialty Wire co/Th., ' anY, Inc., Cockeysville, Maryland, for the three-year term beginning 1, 1962, subject to ascertainment by Chairman Decker of that 42,04 that Mr. Crewe would accept the appointment if tendered. 4342 12/21/61 -111Secretary's Note: It having been ascertained that Mr. Crewe would accept the appointment if tendered, a telegram advising him of the appointment was sent on December 22, 1961. Letter to Counsel, National Association for the Advancement of 2-222.92._(Item No. 10). Chairman Martin reported that he had talked with President Bryan of the Federal Reserve Bank of Atlanta ?egarding the letter received from Counsel for the National Association f°r the Advancement of Colored People under date of December 6, 1961, e°11cerning the fact that the Atlanta Bank was making available separate hut equal rest room facilities for its employees in connection with the OCCRI.Panoy. of its new building, in which dining facilities were to be a nonsegregated basis as were public wash rooms. Chairman Martin said that he had read to Mr. Bryan the draft of letter considered at the'fleeting yesterday, that Mr. Bryan felt that the letter would not l'-loate his problem in dealing with the situation at the Atlanta Bank, thablir. Bryan had been working aggressively to eliminate discrimination In all ways within the Bank as well as in other areas, and that as a reri.to, of this discussion he (Chairman Martin) had come to the conclusion that the draft of letter to the National Association for the Advancement fe„ ,,1J.ored People was in a form that might be transmitted in response t /4 inquiry raised by that Association. After a discussion, unanimous approval was given to the letter to J. Francis Pohlhaus Counsel for the National Association for the qt_O‘ 12/21/61 -15- Advancement of Colored People, with the understanding that a copy would be sent to President Bryan. A copy of the letter is attached as Item N The meeting then recessed and reconvened at 11:45 a.m. with the same Board member attendance as at the beginning of the meeting. M1'. Sherman also was present. Salary of Reserve Bank officer. The Secretary reported a telephone e°111rersation with President Allen of the Federal Reserve Bank of Chicago earlier today in which Mr. Allen reported that at the meeting of the 8°ard of Directors of that Bank this morning consideration would be given to f. IxIng a salary for First Vice President Scanlon for the calendar year 1962 at the rate of $27,500 per annum and that if the Board of Directors acted favorably to fix the salary at that rate, he (Mr. Allen) would telephone 8 this noon in the hope of getting prompt Board appravsl of salary. Unanimous approval was given to the payment of salary to Mr. Sea),-1 -"4-on as First Vice President for the period January 1, 1962, to 1)eeember 31, 1962, at the rate of $27,500 per annum if so fixed by the cilLl'ectc)rs of that Bank. Secretary's Note: Later in the day telephone advice was received from Mr. Allen that the directors had fixed Mr. Scanlon's salary at the rate indicated, and a letter was sent to Chairman Briggs under date of December 21, 1961, approving payment of that salary for the calendar year 1962. 12/21/61 -16- Year-end closing entries. There had been distributed to the Board a memorandum from the Division of Bank Operations dated December 20, 1961, submitting a statement showing the estimated earnings and expenses of the Federal Reserve Banks during 1961, along with proposed year-end er*ies to profit and loss accounts. The reports received from the Banks illdicated that no special charge-offs or other year-end adjustments Nuiring Board approval were contemplated. There being no objection, it was understood that the respective eserne Banks would be advised by telegram that the Board had noted w ithout objection the proposed 1961 year-end closing entries. The meeting then adjourned. Secretary's Notes: The steps contemplated by the Board's action of December 12, 1961, in issuing a preliminary permit to First National City Overseas Investment Corporation, New York, New York, having been completed, a final permit was issued today to that corporation. Pursuant to recommendations contained in memoranda from appropriate individuals concerned, Governor Robertson, acting in the absence of Governor Shepardson, today approved on behalf of the Board the transfer of the following persons on the Board's staff: Jeanne A. Chambers, from the position of Stenographer, Legal Division, to the position of qlerk-Stenographer, Division of Research and Statistics, with no change in basic annual salary at the rate of $4,250, effective December 24, 1961. Rosemary V. Jordan, from the position of Clerk-Typist, Division of Personnel Administration, to the position of Clerk-Typist, Division of Research and Statistics, With no change in basic annual salary at the rate of *3,970, effective December 24, 1961. 12/21/61 -17Governor Robertson also approved today on behalf of the Board the recommendation contained in a memorandum dated December 18, 1961, from Mr. Koch, Adviser in the Division of Research and Statistics, that Mrs. Gertrude Weiss be reappointed as a Consultant, effective January 1, 1962, and until December 31, 1962, for continuance of her work in connection with consumer surveys, on a temporary contractual basis with compensation at the rate of $50 per day for each day worked for the Board either in Washington or outside the city, and, in accordance with the Board's travel regulations, a per diem in lieu of subsistence in the amount of $16 for time spent in a travel status in connection with her assignments, and transportation. It was understood that provision had been made in the 1962 budget of the Division of Research and Statistics for this reappointment. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM 41 t6 WASHINGTON 25. O. C. Item No. 1 12/21/61 4 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD 4 itt447tiat # *4141. 044.0* December 21, 1961 Board of Directors, The Chase Manhattan Bank, New York, New York. Gentlemen: The Board of Governors of the Federal Reserve 8Ystem has approved an extension until August 20, 1962, of the time within which The Chase Manhattan Bank may establish a branch at 3 South Central Park Avenue, Unincorporated Village of Hartsdale, Town of Greenburgh, Westchester County, New York. The establishment of this branch was authorized iX1 a letter dated February 200 1961. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. dtttitto.., BOARD OF GOVERNORS 1" W4;4 OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 2 12/21/61 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 21, 1961 C°Notroller of the Currency, Tre asury Department, ztsilington 252 D. C. Attention: Mr. C. C. Fleming, Deputy Comptroller of the Currency. 4441s I. Comptroller: Reference is made to a letter from your office dated 2R 1961, enclosing copies of an application to organize a 44 st --) tati as :Z°11a1 bank at Venice, Florida, and requesting a recommendation ".° whether or not the application should be approved. A report of investigation of the application made by an examis, N), fo_ the Federal Reserve Bank of Atlanta indicated that a ka ltal structure of $600,000 would be provided rather than $500,0001 adeenxi-arlally proposed. A capital structure of $600,000 appears be a.te, earnings prospects are satisfactory, and there appears to ‘;degree of need for the proposed bank. While proposed management r o not appear altogether satisfactory, the Board of Governors .Q4le rrInlend3 favorable consideration if, upon further investigation or kall,t0 changes, the Comptroller of the Currency concludes that cTement would be satisfactory. Very truly yours, (signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 4348 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 3 12/21/61 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 210 1961 06c.rid of Directors, The Citizens National Bank of Russellville, Kentucky. Qelltlemen: The Board of Governors of the Federal Reserve System /143 given consideration to your application for fiduciary &Ts and grants The Citizens National Bank of Russellville hority to act, when not in contravention of State or local as trustee, executor, administrator, registrar of stocks ' 07a bonds, guardian of estates, assignee, receiver, committee vv. estates of lunatics, or in any other fiduciary capacity in c1,)4411 State banks, trust companies, or other corporations which lirie into competition with national banks are permitted to act i,PT the laws of the State of Kentucky. The exercise of such .0,Jits shall be subject to the provisions of Section 11(k) of „1;e Federal Reserve Act and Regulation F of the Board of Governors v4 the Federal Reserve System. r that A. formal certificate indicating the fiduciary powers Your bank is now authorized to exercise will be forwarded Ile course. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS "74,4 OF THE 0* Item No. 4 12/21/61 FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS orriciAL CORRESPONDENCE TO THE BOARD ttkItitt December 21, 1961 114,rd of Directors, , 11ret National Bank in Loveland, 40veland, Colorado, Ge ntleraen: System The Board of Governors of the Federal Reserve given consideration to your application for fiduciary authority to tv' l Trs and grants First National Bank in Loveland as trustee, law, local or State 24, when not in contravention of guardian bonds, and stocks administrator, registrar of lunatics, of estates of committee estates, assignee, receiver, State banks, trust co in any other fiduciary capacity in which aniest or other corporations which come into competition st2;11 national banks are permitted to act under the laws of the The exercise of such rights shall be subject t04 e. of Colorado. Reserve Act aria le provisions of Section 11(k) of the Federal Federal Re Regulation F of the Board of Governors of the serve System. has powers' A formal certificate indicating the fiduciary that forwarded be will exercise to ,Your bank is now authorized due course. Very truly yours, (Signed) Elizabeth L. Carmichael 'Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE Item No. 5 FEDERAL RESERVE SYSTEM 12/21/61 WASHINGTON 25. D. C. ADDRESS orrictAL CORRESPONDENCE TO THE UOARD December 21, 1961 ,2,4 of Directors, ? and Merchants Hank, Arkansas. Qeritlenten: The Federal Reserve Bank of St. Louis has forwarded to the of Governors your letter dated November 22, 1961, together with the acco.. 41Panying resolution dated November 14, 1961, signifying your to withdraw from membership in the Federal Reserve System .cequesting waiver of the six months' notice of such withdrawal. , Boar In accordance with your request, the Board of Governors kill," the requirement of six months' notice of withdrawal. Upon ,der to the Federal Reserve Bank of St. Louis of the Federal ile een cazle;;e Bank stock issued to your institution, such stock will be Arovi,and appropriate refund will be made thereon. Under the 8'°Iis of Section 10(c) of the Board's Regulation H, your institilti0h /lithi: may accomplish termination of its membership at any time ctraw7; eight months from the date the notice of intention to withrcull membership was given. It is requested that the certificate of ' -ership be returned to the Federal Reserve Bank of St. Louis. Attention is invited to the fact that if your bank is Qa.ro,s lerribe,'8 of continuing deposit insurance after withdrawal from %)a.i'811-1.P in the Federal Reserve System, it will be necessary that '-eation be made to the Federal Deposit Insurance Corporation. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. (1_,1•1, J BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. WASHINGTON 25. D. C. 12/21/61 6 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 21, 1961. Edward A. Wayne, President, ileiZal ti Reserve Bank of Richmond, ,..altIond 13, Virginia. Dear Mr. Wayne: 110 Referring to your letter of December 7, 1961, the Board • riot " 41sto,ed without objection the intentions of your Bank (a) to Zt in May or June 1962 an IBM Model 1401 computer to be used ab011-41bernal accounting and research needs, and (b) to install apeetA. the first of October 1962 a Burroughs B-270 system for highProcessing of checks. is understood that the question of whether rightequiPment on a rental basis with a purchase option 4c1.8 Purchase is still under consideration and that at i°ris in this regard will be submitted to the Board erati.Lon . tk8 It to acquire or by outa later date for consid- Your letter indicates that on October 13, 1961, International computer NItt 88 Machines Corporation was given a firm order for a 1401 that understands Board thereguration which includes disk storage. The disk of merits the to i8 considerable difference of opinion as her and suggests in this light that your Bank may want to give Alr age consideration to this feature of the configuration. Very truly yours, • (Signed) Merritt Sherman Merritt Sherman, Secretary. p I) rfre Item No. AM TELEGR SERVICE 12/21/61 LEASED WIRE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON December 21, 1961 Pt erSon tlanta Board interposes no objection to rental of equipment Iset3rred to in your letter December 7, 1961. (Signed) Merritt Sherman SHERMAN 7 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. O. C. Item No. 8 12/21/61 ADDRESS OFPICIAL CORRESPONDENCE TO THE BOARD December 21, 1961 k listrous H. Irons, President, 4: 14 of Dallas, 1). .,„,ion.Reserve Bank las 2, Texas, Mr. Irons: Referring to Mr. Hardin's letter of December 7, 19610 to yo'1,11,2rrell, the Board has noted without objection the intention of to install in February 1962 an IBM Model 140l computer to bta, `48ed for data processing purposes. Nieli4 It is understood that your Bank plans to give further hollii:Aaration to the question of whether the computer is to be 'opt& .red on a straight rental basis, a rental basis with a purchase W4 4434, or by outright purchase, and that the Board will be advised 4 final decision in this regard has been reached. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. C BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 12/21/61 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD '444:101.1 ' December 211 1961 or Directors, 4rirst National City Trust Company, " 11:311t., New York. 48e,_ Pursuant to your request submitted through the Federal 1 e Barlk of New York, the Board of Governors, acting under the Drov." of Section 19 of the Federal Reserve Act, grants permis4. alon .81°rIe rece-tv ' 43 The First National City Trust Company to maintain the same loew. e8 against deposits as are required to be maintained by banks ,,litCeci outside of central reserve and. reserve cities, effective the the first biweekly reserve computation period beginning after (late of this letter. Your attention is called to the fact that such permission Ject to revocation by the Board of Governors. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. 9 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM • WAS Item No. 10 12/21/61 OFFICE OF THE CHAIRMAN December 21, 1961 lir w ,s,,,v• Francis Pohlhaus, Counsel, N",[arigton Bureau, a''Aional Association for the 107clvancement of Colored People, te,v seachusetts Avenue, N. W., ' Langton 1, D. C. i4r• Pohlhaus: thI appreciate receiving your letter of December 6, 1961, Copy of the memorandum of November 9 sent by President krikall personnel at the head office of the Federal Reserve isc4 Atlanta regarding the occupancy of their new building. tact). noted that hereafter there will be no separation of dining 44ch „ ities at that Bank on the basis of race, nor will there be have rParation in the public rest rooms when remodeling plans "Leen completed. )PC1 a q • p As I believe you know, under the provisions of section 4 ed.eral Reserve Act each of the 12 Federal Reserve Banks be Conducted under the supervision and control of a board of • ,q411% -C4r3• it Those directors administer the affairs of the Reserve Ylashihellbiect to general supervision from the Board of Governors in -i Tn and to certain specific statutory requirements calling ror t-h Board's approval. I do not know what consideration was given by the directors ()t the ;NI aii Atlanta Reserve Bank to making available separate rest room • haa %ler facilities for members of the staff according to race. ti°t Previously seen President Bryan's memorandum of November 9, 111,°r1/0„ Isgollev.074-11 Such a matter ordinarily come to the attention of this Board. k it40;:rf I am sending a copy of your letter to President Bryan since 41,10 Lhat he will be interested in reading your comments, and I am 1-1 • .toeci.„,esting that he take any appropriate steps to bring your let.. e attention of the directors at that Bank. Sincerely yours, atA i 6 0 141/ Wm. McC. Martin, Jr.
@FedFRASER