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Minutes for December 22, 1959 To: Members of the Board From: Office of the Secretary Attached is a copy of the minutes of the Board of Governors of the Federal Reserve System on the above date. It is not proposed to include a statement With respect to any of the entries in this set of minutes in the record of policy actions required to be maintained pursuant to section 10 of the Federal Reserve Act. Should you have any question with regard to the minutes, it will be appreciated if you will advise the Secretary's Office. Otherwise, please initial below. If you were present at the meeting, your initials will indicate approval of the minutes. If you were not present, Your initials will indicate only that you have seen the minutes. Chin. Martin Gov. Szymczak Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. King Minutes of the Board of Governors of the Federal Reserve System on Tuesday December 22, 1959. PRESENT: Mr. Mr. Mr. Mr. Mr. The Board met in the Board Room at 10:00 a.m. Balderston, Vice Chairman Szymczak Mills Robertson Shepardson Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Discount rates. Sherman, Secretary Riefler, Assistant to the Chairman Thomas, Economic Adviser to the Board Shay, Legislative Counsel Molony, Assistant to the Board rget, Director, Division of International Finance Solomon, Director, Division of Examinations Noyes, Adviser, Division of Research and Statistics Hexter, Assistant General Counsel Landry, Assistant to the Secretary Ford, Economist, Banking Section, Division of Research and Statistics Reynolds, Economist, Division of International Finance Hogan, Legal Assistant The establishment without change by the Federal Rese— 've Bank of Atlanta on December 21, 1959, of the rates on discounts 4" advances in its existing schedule was approved unanimously, with the ilriderstanding that appropriate advice would be sent to that Bank. IIT7ys circulated or distributed to the Board. The following ite which had been circulated or distributed to the Board and copies °r *which are attached to these minutes under the respective item numbers tridicated, 'were approved unanimously: Item No. Lett to the Federal Reserve Bank of Philadelphia 0t 14;,441sing no objection to the granting of leave con-'Jeence to an officer to attend an Operations Bov, -re Zence of the Latin American Central Banks in Colombia, beginning February 22, 1960. 1 12/22 59 -2Item No. :ter to The First State Bank of Petoskey, Ptoake-, J Michigan, approving the establishOf a branch at 500 Madison Street, instead 555 West Mitchell Street, and an extension (If time until July 27, 1960. 2 lb,etter to the Bureau of the Budget regarding a "To amend certain laws of the United States light of the admission of the State of Hawaii ' Llito the Union, and for other purposes." Letter to James L. Callan, Inc., Milwaukee, Wis1.co nsin, acknowledging receipt of a letter of we ic"ber 11, 1959, relating to application of a 8conain Bankshares Corporation for prior N2l of the acquisition of shares of Mayfair -k,lona1 Bank of Wauwatosa, Wisconsin. 4 With respect to Item No. 1 above, Governor Robertson asked if the attendance by Mr. Vergari, Vice President, Federal Reserve Bank iladelphia, at an Operations Conference of the Latin American eelltral Banks in Bogota, Colombia, beginning February 22, 1960, would Iselle.ve the Board of the necessity of sending a representative. Mr. Reynolds replied that this was a technical conference conCe vith check clearing procedures, that Mr. Vergari had prepared a 15413er on this topic, and that it was not the type of conference to which the Board would normally send a representative. Governor Mills observed, regarding Item No. 4 above, that if his ecollection was correct, the 15-day period allowed for comments to be rceived by the System relating to an application of Wisconsin Bankshares Corporation for prior approval of the acquisition of shares of MaYrair National Bank of Wauwatosa, Wisconsin, had expired yesterday. 12/.22/59 -3Mr. Hexter replied in the affirmative, adding that the Legal Division hoped to be able to bring the matter back to the Board next week. Messrs. Shay, Marget, Reynolds, and Hogan withdrew from the meeting at this point. Maximum interest rates payable under Regulation Q. dated A telegram December 18, 1959, had been received from Mr. F. L. Martin, Presi- dent of Home Bank, Compton, California, with respect to maximum interest rates payable under Regulation Q1 Payment of Interest on Deposits. Following comment from Governor Balderston that additional 1 -etters or telegrams on the subject had been received from several other ealif°rnia banks urging that the Board raise the permissible maximum rate payable on savings and time deposits, Mr. Thomas asked whether it vas legally possible under the regulation to have a higher maximum Permissible rate on such deposits in one Federal Reserve District than in another. This question having been answered in the affirmative, it was 11°ted that while several California banks were requesting a higher r4aXirsum rate, others were taking the opposite view. After discussion, it vas agreed that no action should be taken at this time with respect to "e several letters other than to make appropriate acknowledgement of the 4, - -act that the letters had been received and brought to the Boardts attent --4°n, and that the matter was having the Boardts continuing con- sideration. 12 2 /59 -4- All members of the staff with the exception of Messrs. Sherman "d molony then withdrew from the meeting. Appointment of Deputy Chairman. Governor Balderston reported that Chairman Mitchell of the Federal Reserve Bank of Atlanta was agreeable to the appointment of Mr. Henry G. Chalkley, Jr., as Deputy Chairman of that Bank for the year beginning January 1, 1960. There- Unanimous approval vas given to Mr. Chalkley's appointment to that position. The meeting then adjourned. Secretaryrs Note: Pursuant to the recommendations contained in memoranda from appropriate individuals concerned, Governor Shepardson today approved on behalf of the Board the following actions affecting the Board's staff: 11.2sE2Lif...les effective December 27 1959: 114me and title Di isi n Basic annual salary To From Research and Statistics Charie A yag Economist $10,370 $11,355 3,755 3,850 12,075 12,315 11,595 11,835 Bank Operations k, Sta is ical Clerk Examinations 44(8.,/,1! C. Leavitt, Supervisory Review preA ner m- w. Troup, Supervisory Review r-xaminer 12/22/59 -5- 82:1E2yY tncrea es, effective December 27 1959: (continued) Basic annual salary From To Division Administrative Services -- 4.110mpson, Xerox Operator oldnros A. Nickens, Mail Clerk Ren17 A. Edmonds, Cafeteria Laborer Notic $4,098 3,445 3,340 $4,306 3,540 3,435 retirement se Constance H. Richardson, Charwoman, Division of Administrative rvices, effective at the close of business on December 31, 1959. Secretary a lip /161. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 1 12/22/59 WASHINGTON 25. D. C. AOORICIIIS orrsaim. COPIREMPONOCHCIC TO THE SOAR° December 22, 1959. Mi. Karl R. Bopp, President, Pederal Reserve Bank of Philadelphia, Philadelphia 1, Pennsylvania. Dear Mr. Bopp: The Board has received your letter of December 3, 1959) regarding the granting to Mr. James V. Vergari of . -Leave of absence (approximately three weeks) with travel and appropriate allowance expenses to permit him to attend OPerations Conference of the Latin American Central Banks to be held in Bogota, Colombia, beginning February 22, 1960. to The Board of Governors interposes no objection this leave of absence for Mr. Vergari. Sincerely yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS 00** 43 07 OF THE Item No. 2 12/22/59 FEDERAL RESERVE SYSTEM WASHINGTON 25, O. C. ADDRESS orricIAL OORPICIIIPONOCNCIt TO THE illOARO December 22, 1959. Board of Directors, The First State Bank of Petoskey, Petoskey, Michigan. Gentlemen: estabThe Board of Governors approves the of Bank State First The by lishment of a branch n, Petoskey at 500 Madison Street, Petoskey, Michiga instead of 555 West Mitchell Street, Petoskey, Michigan, as approved by the Board on July 27, 1959; Provided the branch is established by July 27, 1960. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 3 12/22/59 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 221 1959. Phillip S. Hughes, 4ssistant Director for Ijegislative Reference, 'reau of the Budget, -45hington 25, D. C. eal" Mr. Hughes: memorandum This is in response to your legislative referral ovember 20, 1959, enclosing a draft bill "To amend certain laws,the United States in light of the admission of the State of Hawaii -.Quo the Union, and for other purposes." None of the provisions of the draft bill appear to relate no views ! r ctlY to the Federal Reserve System; and the Board has proposal. legislative express with respect to this t Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE 01, FEDERAL RESERVE SYSTEM * Item No. 4 12/22/59 WASHINGTON 25, D. C. 4;4 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD 01), 40, L oo1.4.* December 22, 1959. Mr. James L. Callan, President, James L. Callan, Inc., 4417 W. North Avenue, Milwaukee 8, Wisconsin. Dear Mr. Callan: December This acknowledges receipt of your letter of es Bankshar 11 in n Wisconsi ) -'59, relating to the application of of shares of ' Cc ion acquisit for prior approval of the ion informat The n. maYfair National Bank of Wauwatosa, Wisconsi coninto taken and view presented by your letter will be sideration before the Board makes its final decision on said aPplication and enters its Order with respect thereto. letter, the With respect to the last sentence of your advisability the ing 13°ard cannot properly assist you in determin neighborOf a Mayfair the PPlying for a charter for a new bank in "00d. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary.
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