The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Minutes for To: Members of the Board From: Office of the Secretary December 231 1,97 Attached is a copy of the minutes of the Board of Governors of the Federal Reserve System on the above date. It is not proposed to include a statement with respect to any of the entries in this set of minutes in the record of policy actions required to be maintained pursuant to section 10 of the Federal Reserve Act. Should you have any question with regard to the minutes, it will be appreciated if you will advise the Secretary's Office. Otherwise, if you were pre bent at the meeting, please initial in column A below to indicate that you approve the minutes. If you were not present, please initial in column B below to indicate that you have seen the minutes. A Chm. Martin Gov. Szymczak Gov. Vardaman 1/ Gov. Mills Gov. Robertson Gov. Balderston x Gov. Shepardson 1/ In accordance with Governor Shepardson's memorandum of March 8, 1957, these minutes are not being sent to Governor Vardaman for initial. 37 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Monday, December 23, 1957. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Martin, Chairman Szymctak Mills Robertson Shepardson Carpenter, Secretary Kenyon, Assistant Secretary Leonard, Director, Division of Bank Operations Johnson, Director, Division of Personnel Administration Mr. Hackley, General Counsel Mr. Masters, Director, Division of Examinations Mr. Daniels, Assistant Controller Mr. Mr. Mr. Mr. Items circulated to the Board. The following items, which had been circulated to the members of the Board and copies of which are attached to these minutes under the respective item numbers indicated, .1el'e approved unanimously: Item No. Letter to the Federal Reserve Bank of Richmond approving 7,1_1 adjustment in the salary structure for employees of the .altittore Branch. 1 tter to Central Trust Company, Harrisburg, Pa., Harrisburg, InsYlvania, approving the establishment of a branch in the , oer ' - Inial Park Shopping Center, Dauphin County, Pennsylvania. " (° transmittal through the Federal Reserve Bank of ' iladelphia) 2 Letter to the Federal Reserve Bank of Atlanta waiving the lerMirement of six months' notice of vithdraval from memberiii the Federal Reserve System for American Bank and —43t Company,Bessemer, Alabama. 3 12/23/57 -2Item No. Letter to the Federal Reserve Bank of New York approving a proposed amendment to the Fiscal Agency Agreement between the Reserve Bank and the International Bank for Reconstruction and Development. 4. Mr. Johnson then withdrew from the meeting. Estimated Reserve Bank earnings and expenses during 1957 (Items 5 There had been sent to the members of the Board copies of a Illemorandum from the Division of Bank Operations dated December 20, 1957, concerning estimated earnings and expenses of the Federal Reserve Banks during 1957, including proposed year-end adjustments. It was recommended that the respective Reserve Banks be advised that the Board had noted l'ithout objection the proposed 1957 year-end entries to profit and loss accounts. In addition, it was proposed to advise the Banks that the 11411P-sum payments of approximately $8,335,000 to the Retirement System or the Federal Reserve Banks to provide for increased benefits would be shovn in the Board's Annual Report as "Retirement System (adjustment for revised benefits)"; that the addition of approximately $1,300,000 to net earnings reflecting reimbursement of expenses incurred prior to 1957 in connection with processing Postmasters' Deposits would be shown "Reimbursement " ktd for fiscal agency expenses incurred in prior years"; that the Board believed it desirable that these items be described iltlif°rmly. In the case of the Federal Reserve Bank of Dallas, the tasalorandum stated that on the basis of figures as of December 11, 1957, the surplus (section 7) account was about $422,000 below subscribed 12/23/57 capital. -3.. Therefore, in accordance with the established procedure the telegram to that Bank would indicate that allowance would be made for bringing surplus (section 7) up to 100 per cent of subscribed capital before computation of the payment to the Treasury as interest on Federal Reserve notes. In commenting on the subject, Mr. Leonard said that in addition tQ the two special charge-offs totaling $12,525 which the Federal Reserve 14ak ' of Atlanta proposed to make, the memorandum should have stated that the Federal Reserve Bank of San Francisco was charging off an item of $11,000 representing architectes fees in connection with an abandoned Pftie t for the erection of a service building across the street from the head office building. Unanimous approval then was given to telegrams to the Federal Res erve Banks, except Dallas, in the form attached hereto as Item No• a'b4- a telegram to the Dallas Bank in the form attached as Item No. 6. Messrs. Leonard and Masters then withdrew from the meeting. Assessment to cover e enses of Board during first half of 1958. It. memorandum dated December 19, 1957, copies of which had been sent t° the members of the Board, Mr. Daniels recommended that an assessment (It tvo hundred fifty-seven thousandths of one per cent (.00257) of the to paid.in capital and surplus (section 7 and section 13b) of the Federal Reserve Banks s of December 31, 1957, be levied upon the Banks 12/23/57 to meet estimAted expenses of the Board for first half of 1958. Based on an estimate of Federal Reserve Bank capital and surplus of $1,181,000,000, the recommended rate would produce a total of $3,035,170. The gross amount required by the Board for the first half of 1958 vas estimated to be $3,367,697, including an allowance for contingencies of $2000000. Following comments by Mr. Daniels, the recommendation contained in his memorandum was approved unanimously and it was understood that appropriate advice regarding the assessment would be sent to the Federal Reserve Banks by the Office of the Controller. The meeting then adjourned. Secretary's Note: Pursuant to recommendations contained in memoranda from appropriate individuals concerned, Governor Shepardson today approved on behalf of the Board increases in the basic annual salaries of the following persons on the Board's staff, effective December 29, 1957: Nam aLt.I9:2 Division Basic annual salary From To ........ Board Members' Offices $6,820 argaret N. Muehlhaus, Secretary to the Chairman 6,605 Balderston Governor B. to Gelen Wolcott, Secretary Szymczak 5,105 Governor to Secretary brrge L. Spencer, Jr., 6,605 Vardaman Governor °thY Duke, Secretary to 2 leleine E. Benton, Secretary to Governor Mills 6,605 6,605 tl rothy S. Mooney, Secretary to Governor Robertson 6,605 Shepardson Governor Ilie M. Westman, Secretary to ' z $7,035 6,820 611= 6,820 6,820 6,820 12/23/57 Salary increases !Lille and title effective December 29 1957 (continued) Basic annual salary From To Division Office of the Secretary Adaline R. Beeson, Records Analyst 1/ $4014.80 $4,620 4,210 4,620 4,345 4,755 4,620 14,755 5,845 6,820 5,980 7,035 7,785 8 000 Research and Statistics Priscilla S. Goodby, Research Assistant Monica F. Jones, Statistical Assistant Winofred J. Racz Statistical Assistant Examinations Michael W. Flynn, Assistant Federal Reserve Examiner Travis J. Johnson, Federal Reserve Examiner Personnel Administration • John j Hart, Personnel Assistant Pursuant to the recommendation contained in a memorandum dated December 20, 1957, from Mr. Kelleher, Assistant Director, Division of Administrative Services, Governor Shepardson today approved on behalf of the Board payment of the usual night differential to members of the Board's Labor Force assigned to duty from 100 p.m. to 500 p.m. on December 24 and December 31, 1957, because of the action of the Board granting reduced hours of duty on those dates. Seer tary , Change in title from Senior Records Clerk to Records Analyst. : r3 ' 7149 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 1 12/23/57 ADDRESS orrsciAL CORRESPONOENCE TO THE BOARD December 23, 1957 291IFI1ENTIAL ____........____ (FR) Mr. Hugh Leach, President, Federal Reserve Bank of * Richmond, Richmond 13, Virginia. Dear Mr. Leach: In accordance with your letter of December 5, 1957, the Board of Governors approves the following minimum and maAimum salaries Or the respective grades of the salary structure applicable to the Baltimore Branch of the Federal Reserve Bank of Richmond effect Lye December 30, 1957: Grade 1 2 Minimum Salary $2,197 2,)444 14ualary Max; ia ,302 3,601 3,90o 3 4 M .35 5 4,849 3,601 6 5,46o 4,043 7 5,993 8 4,433 96,669 4,94o 7„2,141 5,369 3.0 7,813 la 8,6.0 12 6:381 59 9,:308 6,890 13 10,0.4 7,488 14 10,920 8,086 15 11,700 168,713 l :Ie azloyees, The Board approves the payment of salaries tot for fied , b in which specL limits the n officers, within +1, - than w'e positions of the respective employees are classiaed. It is assumed oth.r iirs Hugh Leach - 2 tj that all employees whose salaries are below the minimum of their grades as a result of the structure increase will be brought within the appropriate range as soon as practicable and not later than April 1, 1958. It is understood that the present employees' salary structure of the Head Office and Charlotte Branch, which was made effective January 1, 1957, will continue to be applicable to those offices. The Board understands that provision has been made in the 1958 budget to cover the cost of increases arising from this change in salary structure. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. BOARD OF GOVERNORS OF THE Item No. 2 12/23/57 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. ADDRESS arrociAL CORRESPONDENCE TO THE BOARD December 23, 1957 Board of Directors, Central Trust Company, Harrisburg,a Harrisburg, Pennsylvania. P Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Philadelphia, the Board of Governors of the Federal Reserve System approves the establishment of a branch in the Colonial Park Shopping Center, Jonestown Road and Colonial Road, Lower Paxton Township, Dauphin 0unty, Pennsylvania, by Central Trust Company, Harrisburg, ) Harrisburg, Pennsylvania, provided the branch is esra, tablished within one year from the date of this letter and the approval of the State authorities is in effect as of the date of the establishment of the branch. 2 Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. ir2p t BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM \‘‘,4 Item No. 3 12/23/57 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 23, 1957 Mr, J. F. Denmark, Vice President, Federal Reserve Bank of Atlanta, Atlanta 3, Georgia. Nar Mr. Denmark: Reference is made to your letter of December 10, 1957, enclosing a copy of a resolution adopted by the board of directors of the American Bank and Trust Company, Bessemer, Alabama, signillying its intention to withdraw from membership in the Federal Reserve System and requesting waiver of the six months' notice of such withdrawal. In accordance with the bank's request, the Board of Governors waives the requirement of six months' notice of withdrawal. Accordingly, upon surrender of the Federal Reserve Bank stock issued tc the bank, you are authorized to cancel such stock and make appropriate refund thereon. Under the provision of Section 10(c) of Regulation H, as amended effective September 1, 1952, the bank maY accomplish termination of its membership at any time within eight months after notice of intention to withdraw is given. The certificate of meAbership issued to the bank should be Obtained if possible and forwarded to the Board. The State flIcing authorities should be advised of the bank's proposed withdrawal from membership and the date &tell withdrawal becomes e rfective. It is our understarlding that the bank has filed a formal !PPlication with the Federal Deposit Insurance Corporation for continuance of deposit insurance after withdrawal from membership. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. ir. ) BOARD OF GOVERNORS 4400**,4,4 014: °OW; 4" / , *'1 " ..4t•;' OF THE FEDERAL RESERVE SYSTEM Item No. 4 12/23/57 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 231 1957 Mr. H. A. Bilby, Vice President, Federal Reserve Bank of New York, New York 451 New York. Dear Mr. Bilby: This refers to your letter of December 12, 1957, and its enclosures, c,oncerning the proposed amendment to the Fiscal Agency Agreement, doted as of February 6, 19501 between the International Bank for Reconstruction and Development and your Bank $o as (1) to provide that your Bank shall make all transfers and exchanges of all registered Bonds of the International Bank in accordance with instructions given by the International Bank which will be in the form of a letter to your Bank to make such transfers and exchanges in accordance with procedures aPplicable to United States Treasury Bonds, and (2) to reflect the fact that there is now more than one Vice President of the International Bank. The Board of Governors approves the execution and elivery by your Bank of an Agreement with the International Bank -in the form of the draft of Supplement No. 12 to the Fiscal Agency A greement, dated as of February 6, 1950, between your Bank and the International Bank, enclosed with your letter. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. :7.7. TELEGRAM LEASED WIRE SERVICE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON Item No. 12/23/57 December 23, 1957 TO THE PRESIDENTS OF ALL FEDERAL RESERVE BANKS EXCEPT DALLAS Board has considered and notes without objection proposed year-end closing entries of your Bank as shown by statement accompanying Board's Annual Report will show as separate items (a) reimbursement for handling Postmasters' Deposits in prior years as "Reimbursement for fiscal agency expenses incurred in prior years"; and (b) special contributions to Retirement System as "Retirement System (adjustment for revised benefits)". If these items are set forth in your published statements, Board believes it desirable that they be described uniformly as indicated above. Boston (Signed) S. R. Carpenter CARPENTER (a) December 3 letter from Mr. Strong New York December 5 letter from Mr. Kimball Philadelphia December Cleveland December 12 letter from Mr. Clouse Richmond December 12 letter from Mr. Leach Atlanta December 13 letter from Mr. Raisty Chicago December 12 letter from Mr. Dawes St. Louis December 16 letter from Mr. Weigel Minneapolis December 11 letter from Mr. Ohnsted Kansas City December 11 letter from Mr. Rankin San Francisco November 18 letter from Mr. Hemmings 5 letter from Mr. McCreedy 5 3'755 TELEGRAM LEASED WIRE SERVICE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHiNGTON Item No. 6 12/23/57 December 23, 1957 Irons - Dallas Board has considered and notes without objection proposed year-end closing entries of your Bank as shown by statement accompanying December 12 letter from lir. Austin. Board's Annual Report will show as separate items (a) reimbursement for handling Postmasters' Deposits in prior pars as "Reimbursement for fiscal agency expenses incurred in prior years"; and (b) special contributions to Retirement System as "Retirement System (adjustment for revised benefits)". If these items are set forth in your published statements, Board believes it desirable that they be described uniformly as indicated above. It is noted that your surplus ( ection 7) account is below subscribed capital. In necordance with established procedure allowance Will be made for bringing such surplus to 100 per cent of subscribed capital before computation of payment to Treasury of interest on Federal Reserve notes. (Signed) S. R. Carpenter CARPENTER
@FedFRASER