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Minutes for
To:
Members of the Board
From:
Office of the Secretary
December 24, 1963.
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 appr.oval of the minutes. If
you were not present, your initials will indicate
only that you have seen the minutes.
Ohm. Martin
Gov. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
Gov. Mitchell
GOV. Daane
Minutes of a meeting of the available members of the Board
of Governors of the Federal Reserve System on Tuesday, December 24,
1963.
The meeting was held in the Board Room at 10:00 a.m.
PRESENT:
Mr. Robertson, Acting Chairman
Mr. Mitchell
Mr. Daane
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Sherman, Secretary
Kenyon, Assistant Secretary
Fauver, Assistant to the Board
Hackley, General Counsel
Noyes, Director, Division of Research and
Statistics
Farrell, Director, Division of Bank
Operations
Solomon, Director, Division of Examinations
Holland, Adviser, Division of Research
and Statistics
Conkling, Assistant Director, Division of
Bank Operations
The following actions were taken subject to ratification at
the next meeting of the Board at which a quorum was present:
Discount rates.
The establishment without change by the
ederal Reserve Bank of Boston on December 23, 1963, of the rates on
discounts and advances in its existing schedule was approved unanimously,
10-th the understanding that appropriate advice would be sent to that
sank
Application of Old Kent Bank and Trust Company (Items 1 and 21. .
There had been distributed drafts of an order and statement reflecting
the decision of the Board at the meeting on December 18, 1963, to
'PProve the application of Old Kent Bank and Trust Company, Grand Rapids,
Ilichigan, for permission to consolidate with Community State Bank,
Grandville
Michigan.
12/24/63
-2-
After discussion, the issuance of the order and statement was
authorized.
And
Copies of the documents, as issued, are attached as Items 1
2
Salaries of New York officers (Item No, 3).
Unanimous approval
was given to a letter to the Federal Reserve Bank of New York (copy
attached as Item No. 3) approving the payment of salaries to Messrs.
John F. Pierce and Robert Lindsay as officers of the Bank for the
Period January 1 through December 31, 1964, at the respective annual
rates fixed by the Board of Directors.
The incoming letter from the
Bank noted that Mr. Pierce was scheduled to leave the Bank, probably
in the latter part of January 1964, to accept appointment as Governor
(If the Central Bank of Trinidad and that Mr. Lindsay was on a year's
leave of absence terminating in September 1964 to teach at the
University of California.
The action taken would permit the payment
Of salary to Messrs. Pierce and Lindsay for those portions of the year
1964 for which they were working for the Reserve Bank.
Special salary structure maximum (Item No. 4).
By letter to
the Federal Reserve Banks dated November 18, 1963, the Board indicated
its Willingness to approve a special maximum of $17,500 for Grade 16 of
the salary structure of any Federal Reserve Bank whose directors might
ecluest that such a maximum be established.
The object of the special
•
Trlaxlmum was to facilitate the recruitment and retention of certain
tYPes of professional personnel.
4529
12/24/63
-3-
The Secretary noted that some Reserve Banks had requested and
received approval of the special maximum pursuant to the Board's action,
and that such a request had now been received from the Federal Reserve
Bank of New York.
The sending of a letter (copy attached as Item No. 4)
approving the special maximum for the New York Bank was
.11.91.ta without
objection.
Call report (Items 5 and 6).
There had been distributed copies
Of a letter dated December 20, 1963, from A. J. Faulstich, Administrative
Assistant to the Comptroller of the Currency, relating to the Board's
letters to the Comptroller dated November 27 and December 18, 1963.
The incoming letter stated that the "reconciliation schedule" that
the Board proposed to require of all national banks as of the December
call date constituted, in the view of the Comptroller's Office, "a
discriminatory and intolerable reporting burden which has the effect
Of Penalizing National Banks for the high standards of public disclosure
/41lien they are following."
It also stated that the Office had decided
to omit from the December call "the valuation reserve reporting requireemployed in the September call."
In view of this advice, from which it appeared that the December
call report form for national banks would resemble the form used for
the June 29, 1963, call, it was agreed that the sending of the reconciliation schedule to national banks in connection with the December call
‘/°414 not be necessary.
This was on the assumption that the call report
/1.130
12/24/63
-4-
form for national banks, when available for inspection, would be found
to be in a format such as indicated by the letter from Mr. Faulstich.
Also on this assumption, consideration was given to a reply to the
Comptroller, and unanimous approval was given to a letter in the form
attached as Item No. 5.
Secretary's Note: Inspection of the form
being used by the Comptroller for the
December call confirmed that the use of
the supplemental reconciliation schedule
for reports of national banks would not
be needed. Accordingly, the reply to the
Comptroller, a copy of which is attached
to these minutes as Item No. 5, was sent
on December 24, 1963. The Federal Reserve
Banks were advised in a wire dated December
26 that the use of the supplemental reconciliation schedule would not be required
and that supplies of those schedules
therefore could be destroyed.
Governor Robertson stated that, as Acting Chairman of the
80ard, he had entered his dissent yesterday on a document dated
1)ecember 18, 1963, selecting the close of business December 20, 1963,
as the time and date for all insured banks to make reports of condition
Pursuant to section 7 of the Federal Deposit Insurance Act, such call
t° be announced on December 26, 1963.
This document bore the signatures
Qf James J. Saxon, as Comptroller of the Currency and Acting Chairman
Of the Federal Deposit Insurance Corporation, and Jesse P. Wolcott,
a8
a Director of the Corporation.
Governor Robertson also stated that, as Acting Chairman of the
hoard, he had signed a document making the joint call for reports of
4531
12/24/63
-5-
conditi0n by insured banks.
This document bore the signatures of
Messrs. Saxon and Wolcott, in the same capacities as indicated on
the document selecting the call date.
Mr. Sherman reported that under date of December 23, 1963,
there had been received a letter signed by Edison H. Cramer, Chief of
the Division of Research and Statistics of the Federal Deposit Insurance
Corporation, stating that the close of business December 20, 1963, had
been selected as the date for the fourth call for reports of condition
to be made by insured banks within the calendar year 1963; that the
call would be announced on December 26; and that the Corporation was
that day notifying the various State banking authorities of the call
date and time of announcement.
Mr. Sherman said that following receipt of the letter from
11r. Cramer he had sent the customary wire to the Federal Reserve Banks
advising that a call on State member banks for reports of condition as
Of December 20, 1963, should be made December 26 on forms furnished with
the Board's letter of December 18, 1963.
As usual, the action taken in
sanding the telegram was subject to ratification by the Board.
Secretary's Note: The action taken
in sending the wire was ratified at
the meeting of the Board on December
30, 1963.
In furtherance of previous discussion, consideration was given
to the text of a guideline that would not be released publicly by the
Iletard but could be used by members of the Board, Mr. Molony's office,
A cry ir
t
-6-
12/24/63
and Reserve Bank Presidents in replying to any inquiries concerning the
date of the call.
After discussion in the light of pertinent developments, including the information contained in the December 20 letter from Mr. Faulstich,
was reached on the form of a guideline and on its transmittal
to the Reserve Bank Presidents along with certain other information.
Attached as Item No. 6 is a copy of the wire subsequently sent to the
Reserve Banks.
Foreign travel.
As requested in a memorandum dated December 20,
1963, from Mr. Young, Adviser to the Board and Director, Division of
International Finance, Rodney H. Mills, Economist in the Division of
International Finance, who had previously been designated to visit the
Bank of Spain for one month (April 1964), was authorized to extend his
travel for two weeks to visit the central banks of France and Italy,
with the provisions of the standardized Government travel regulations
to be applicable to the entire trip.
The meeting then adjourned.
Secretary's Notes: Acting in the absence of
Governor Shepardson, Governor Robertson today
approved on behalf of the Board a telegram to
the Federal Reserve Bank of Richmond (attached
Item No. 7) approving the appointment of
Lloyd W. Bostian, Jr., and Douglass H. Adams as
examiners.
Governor Robertson today noted on behalf of the
Board a memorandum from the Division of Research
and Statistics advising that Grace R. Sahm,
A 53
12/24/63
-7Draftsman Illustrator in that Division,
had filed application for retirement,
effective at the close of business
December 30, 1963.
There was sent today to the Federal
Reserve Bank of Minneapolis a letter
(copy attached as Item No. 8) approving
the payment of salary to President Deming
for the period January 1 through December 31,
1964, at the rate of 00,000, if so fixed by
the Board of Directors. This letter was sent
pursuant to the action taken by the Board of
Governors on December 9, 1963, with regard to
salaries of Reserve Bank Presidents and First
Vice Presidents.
•/14.
Sec eta
STIL
Item No. 1
12/24/63
UNITED STATES OF AMERICA
BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D. C.
In the Matter of the Application of
°I,D KENT BANK AND TRUST COMPANY
Or approval of consolidation with
‘.0111munity State Bank
ORDER APPROVING CONSOLIDATION OF BANKS
There has come before the Board of Governors, pursuant to
the Bank Merger Act of 1960 (12 U.S.C. 1828(0), an application by
041 Kent Bank and Trust Company, Grand Rapids, Michigan, a Statechartered member bank of the Federal Reserve System, for the Board's
Ptior approval of the consolidation of that bank and Community State
ilank, Grandville, Michigan, under the charter and title of the former.
48 an incident to the consolidation, the two offices of Community State
1344k would be operated as branches of Old Kent Bank and Trust Company.
11°tice of the proposed consolidation, in form approved by the Board,
hes
been published pursuant to said Act.
Upon consideration of all relevant material in the light of
the factors set forth in said Act, including reports furnished by the
4535
-2-
t
nce Corporation,
Comptroller of the Currency, the Federal Deposi Insura
and the Department of Justice on the competitive factors involved in
the proposed consolidation,
s set forth in the
IT IS HEREBY ORDERED, for the reason
ation be and hereby is
Board's Statement of this date, that said applic
n shall not be consummated
aPProved, provided that said consolidatio
of this Order or (b) later
(a) within seven calendar days after the date
than three months after said date.
day of December, 1963.
Dated at Washington, D. C., this 24th
By order of the Board of Governors.
an Martin, and
Voting for this action: Chairm
dson, Mitchell, and Daane.
Shepar
Governors Mills, Robertson,
Absent and not voting:
Governor Balderston.
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
(sEAL)
453C
BOARD OF GOVERNORS
Item No. 2
12/24/63
OF THE
FEDERAL RESERVE SYSTEM
APPLICATION BY OLD KENT BANK AND TRUST COMPANY
FOR APPROVAL OF CONSOLIDATION WITH
COMHUNITY STATE BANK
STATEMENT
Old Kent Bank and Trust Company, Grand Rapids, Michigan
("old Kent"), with deposits of $307.6 million as of September 30,
1963) has applied, pursuant to the Bank Merger Act of 1960
(12 U.S.C. 1828(c)), for the Board's prior approval of the consolidaof that bank and Community State Bank, Grandville, Michigan
("Community Bank"), with deposits of $18 million as of the same date,
11114T the charter and title of Old Kent.
As an incident to the con-
the two offices of Community Bank would be operated as
1314Mmhes of Old Kent, increasing the number of its approved offices
tC) 2 .
to
Under the Act, the Board is required to consider, as
4(.4.
,
'" of the banks involved, (1) its financial history and condition
(
the adequacy of its capital structure, (3) its future earnings
hcIsPects, (4) the general character of its management, (5) whether
its
purposes of 12 U.S.C.,
corporate powers are consistent with the
Ch
'10 (the Federal Deposit Insurance Act), (6) the convenience and
tieeds of the community to be served, and (7) the effect of the
}."4
45,)e-2transaction on competition (thciuding any tendency toward moropoly).
The Board may not approve the transaction unless, after considering
all these factors, it finds the transaction to be in the public interest.
Bankinq factors. - The proposed consolidation is the direct
to light, centerresult of serious difficulties, which recently came
department of Community
ing principally in the mobile home financing
Bank.
its capital having declined
The bank's condition is hazardous,
made beto a dangerously low point following charge-offs that were
cause of loan losses in that department.
Moreover, there are potential
with the
losses, including large contingent liabilities in connection
bank to other
servicing of mobile home or trailer paper sold by the
banks.
able.
The future earnings prospects of the bank are highly unfavorin.0Aside from the subject application, there has been no
ed condition
P°sal that would remedy satisfactorily the bank's distress
majority
brought about by deficiencies in its management, which owns a
Of the bank's stock.
satisfactory.
The financial history of Old Kent is
The
structure
bank's asset condition also is satisfactory, and its capital
is adequate.
the bank are favorable,
The future earnings prospects of
and its management is satisfactory.
Nothing in the record indicates
that these attributes would not also characterize the resulting bank,
under the management of
or that the resulting bank - which would be
ced trailer loan
Old Kent and 'which would continue Old Kent's experien
dtvision - could not satisfactorily resolve the problems involved in
its assimilation of Community Bank.
41/10/11wwwww__
4538
There is no evidence that the corporate powers of the banks
are, or would be, inconsistent with 12 U.S.C., Ch. 16.
Convenience and needs of the communities. - Grand Rapids,
With a population exceeding 177,000, is the largest city and the leadin the western portion
ing industrial, commercial, and financial center
Of the lower peninsula of Michigan.
The population of the Grand Rapids
the trade area has a populametropolitan area is around 300,000, and
tion of nearly one million.
Old Kent offers a full range of banking
and trust services at its main office and 19 branches in Grand Rapids,
and its six out-of-city branches.
Another authorized in-city branch
is not yet open for business.
The main office of Community Bank is at Grandville, which
has a population of about 8,000 and which is situated approximately
five miles southwest of Grand Rapids.
Hudsonville, the site of
Community Bank's only branch, is situated about five miles southwest
of Grandville and has a population of about 2,600.
no other banking offices.
The two towns have
Primarily suburban residential and shopping
centers, the economies of Grandville and Hudsonville are closely related to Grand Rapids.
The areas surrounding the two small towns,
devoted largely to
each of which has a few small industries, are
truck farming.
Community Bank are served
The areas served by Old Kent and
and two of the banks (one in
als° by over 30 offices of other banks,
Grand Rapids and one in Byron Center) recently established branches
at Jellison,
two miles east of Grandville, and Jamestown, three miles
453"
-4-
southeast of Hudsonville.
These branches provide convenient alternative
sources of banking services for residents of Grandville and Hudsonville.
Over one-third of Community Bank's loan account comprises
trailer paper of borrowers far removed from the Grandville-Hudsonville
"ea. A serious question arises as to whether that bank has devoted
appropriate attention to the needs of the two communities.
In any
event, as branches of Old Kent, the Grandville and Hudsonville bankoffices would make available in each of the towns a substantially
higher lending limit and a wider range of services than are presently
available at those offices.
The convenience and needs of the Grandville-Hudsonville area
Clearly would be served by the proposed correction of the hazardous
situation, previously outlined, which, if allowed to deteriorate
further, might leave both towns without functioning banking offices.
1/
Competition. - As the service areas.= of Old Kent and
Community Bank overlap near the southwestern limits of Grand Rapids
and since Old Kent is an active competitor throughout the western
Portion of Michigan's lower peninsula, effectuation of the proposal
Iftuld eliminate the competition existing between the two banks.
How-
Community Bank makes its
ever, as the seriously weakened condition of
continuance as a viable banking institution doubtful, its effectiveas a competitor already has greatly diminished.
That area from which a bank derives 75 per cent or more of its
Posits, both demand and time, of individuals, partnerships, and
Corporations (IPC deposits).
4 40
-5_
Of the eight banks having offices in the service areas of
the two banks, Old Kent is by far the largest, having more than twice
the volume of deposits and the number of offices of the next largest
bank.
Old Kent holds 48.9 per cent of the total deposits and has
42.8 per cent of the offices of all the banks in the service areas
of the two banks.
Community Bank ranks fifth in size among the eight
banks.
If the proposal were consummated, Old Kent's share of the
deposits would be increased to 51.8 per cent and its share of the
°ffices would rise to 46 per cent.
This would not significantly change
the competitive situation in Grand Rapids.
However, competition would
be intensified for the recently established Jenison branch of the third
laqest of the Grand Rapids banks and also for the recently established
Jamestown branch of the Byron Center State Bank (4.5 miles from Grandville),
the smallest bank in the area.
Also, the small banks at Uyoming
(3-6 miles from Grandville) and at Byron Center would be placed at some
e°mpetitive disadvantage.
Under Michigan law, establishment of branches
by Old Kent in Grandville and Hudsonville would preclude the establishment
of branches in either town by other banks, although the location
in either town of a newly organized bank would be permissible.
Summary and conclusion. - It is evident that consummation
Of the proposed consolidation would enhance the competitive position
Of
old Kent, already the dominant bank among the eight banks serving
the Grand Rapids and Grandville-Hudsonville areas, and would have an
verse
effect on banking competition.
On the other hand, the proposed
541
to the extremely hazardous
transaction is the only practical solution
eight
situation that besets Community Bank (the fifth largest of the
banks) which, if not remedied promptly, risks substantial detriment
to the public. In addition, there would be some improvement and
at Grandville and
broadening in the banking services available
Rudsonville.
on to
Accordingly, the Board finds the proposed consolidati
be in the public interest.
December 24, 1963.
4542
BOARD OF GOVERNORS
Item No. 3
12/24/63
OF' THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
AOOFICIBE arricim. CORREMPONOICHCIE
TO THE DOARD
December 24, 1963,
NIPIDEtrrIAL (FR)
It% .,
pe4_41,fred Hayes, President,
41:!al Reserve Bank of New York,
Iork, New York 10045.
t Mr. Hayes:
The Board of Governors approves the payment of salaries to the
Wing officers of the Federal Reserve Bank of New York, at rates
Kkoated, for
the period January 1 through December 31, 1964:
Name
Title
Annual
Salary
F. Pierce
40bert Lindsay
Chief Examiner
Senior Economist
$17,500
16,000
The salary rates approved are those fixed by your Board of
4tectore, as reported in your letter of December 16, 1963.
Very truly yours,
Merritt
Secretary.
Item No.
BOARD OF GOVERNORS
4
12/24/63
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS, OFIIICIAL CORRESPONDENCE
TO THE BOARD
December 24, 1963.
CONFIDENTIAL (FR)
Mr. Alfred Hayes, President,
Federal Reserve Bank of New York,
New York, New York 10045.
Dear Mr. Hayes:
The Board of Governors has approved a special
Grade 16 maximum of $17,500 in the salary structure applicable to the Head Office of the Federal Reserve Bank of
New York, effective immediately, as requested in your
letter of December 10, 1963.
Very truly y
ra,
C
(.....:::L/
Merritt
Secre
4544
BOARD OF GOVERNORS
Item No.
OF THE
5
12/24/63
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 24, 1963.
The Honorable James J. Saxon,
Comptroller of the Currency,
Main Treasury Building, Room 3120,
Washington, D. C. 20220
Dear Mk. Saxon:
This is in response to Mr. Faulstich's letter of December 20,
1963, informing the Board of your decision to return to the reporting
of assets net of valuation reserves in the national bank report of
condition form to be used for the December call. Your action in this
respect should insure the uniform treatment of valuation reserves in
all Federal and State bank call report forms for December, an
objective very much to be desired. It was the Board's interest in
this objective that led its representatives to urge the reporting of
assets net of reserves in the December call, inasmuch as there was
not sufficient time to permit changes in the forms intended for use
in December by the other bank supervisory agencies.
The Board remains ready to consider the specific itemization
of valuation reserves in the published portion of the call report
form, in such uniform or compatible manner as may be judged appropriate by all the supervisory agencies involved.
Sincerely,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
t1,1
,
Item No. bl '
4/63
2
12/
RAM
TELEG
LEASED WIRE SERVICE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
CONFIDENTIAL (FR)
December 24, 1963
110 THE PRESIDENTS OF ALL FEDERAL RESERVE BANKS
With reference to date of call for December report of condition,
Board anticipates some inquiries may be received as to why the particular
late was selected when this becomes public information.
There is quoted
below the substance of a guideline that will be used as a basis for responding
to
date.
inquiries received at the Board regarding the
System and the Federal
"In recent weeks the Federal Reserve
Deposit Insurance Corporation have been engaged in an effort to persuade
bankers that no useful purpose is served by so-called 'window dressing'
o perations for the purpose of inflating year-end figures of condition,
and that such operations, by a relatively small number of banks, tend
to discredit the banking business generally.
In the light of the
reassurances it has received, and the obvious statistical advantages
31
°I a year-end call, the Federal Reserve would have preferred a December
call date.
the
However, under the law the call date is selected by
maiority of the heads of the three Federal bank supervisory agencies,
the Comptroller of the
and in this case the date was selected by
Currency and the acting Chairman of the Board of the FDIC.
The Reserve
Board feels that those member banks who had given assurance that they
would refrain from window dressing over the year end should know that
the December 20 date was selected over the objection and without the
Concurrence of the acting Chairman of the Board of Governors."
No announcement or press statement on this subject is being issued
by
the Board, and it is not believed desirable that any Reserve Bank issue a
CONFIDENTIAL (FR)
-2-
December 24, 1963
formal statement as to the reasons for selection of the date.
Reserve Banks
flay, however, use the substance of the guideline as a basis for responding
orally to inquiries if they so desire.
For your bank's information only, the document selecting the date
Ifts signed affirmatively by Mr. Saxon in his capacity as Comptroller of the
Currency and Acting Chairman of the Board of Directors of the Federal
beposit Insurance Corporation and by Mr. Wolcott as a director of FDIC.
Governor Robertson, as Acting Chairman of the Board, dissented from the
selection.
The notice to appear in the Federal Register actually making
the call is, of course, signed by the heads or acting heads of the three
agencies, pursuant to provisions of law.
For your further information, the Federal Reserve-F.D.I.C.
campaign for realistic bank condition statements drew a commendation
earlier this month from the Chairman of the Legal and Monetary Affairs
Subcommittee of the House of Representatives' Government Operations
Committee, Dante B. Fasce11.
recommendation had
In a report to Congress on November 22, a
been made by that Committee
that the federal bank supervisory agencies
14ake a coordinated, concerted, continued use of their powers of moral
Suasion to have the banking community refrain and desist from the use
Of nonpurpose transactions and from window dressing of bank reports
and statements.
4547
eNFIDENTIAL (FR)
.3-
December 24, 1963
In the same report, the Committee observed that "the wider
48e of surprise dates for calls rather than traditional month-end or
Year-end dates would aid in reducing window dressing in call reports,"
but added that this"would not stop the practice in call reports, and
w°uld have no effect on the voluntary bank statements."
(Signed) Merritt Sherman
SHERMAN
.14
Item No.
TELEGRAM
SERVICE
7
12/24/63
LEASED WIRE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
December 26, 1963.
NOSKER - RICHMOND
Reurlets December 19, 1963, Board approves appointments of Lloyd W.
examiners, as
Bostian, Jr. and Douglass H. Adams, at present assistant
January 1, 1964.
examiners for Federal Reserve Bank of Richmond, effective
It is noted Adams
father is executive vice president and director of
Parkersburg National Bank, Parkersburg, West Virginia and that Adams
is indebted to Mountain State Bank, Parkersburg, West Virginia, a
nonmember bank of which he owns 26 shares of stock.
Accordingly, approval
Of Adams' appointment is given with understanding he will not participate
is
in any examination of Parkersburg National Bank so long as his father
as he is
Officer or director thereof, or of Mountain State Bank so long
indebted to, or owns stock of, that institution.
(signed) Elizabeth L. Carmichael
CARMIC !AEI
4549
BOARD OF GOVERNORS
Item No.
OF THE
12/24/63
8
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 24, 1963.
CONFIDENTIAL (FR)
Mr. Atherton Bean, Chairman,
Federal Reserve Bank of
Minneapolis,
Minneapolis, Minnesota 5544o.
Dear
Mr. Bean:
The Board of Governors approves the payment of salary
to Mr. Frederick L. Deming as President of the Federal Reserve
Bank of Minneapolis for the period January 1 through December 31,
1964, at his current rate of $40,000 per annum, if so fixed by
Your Board of Directors.
You were advised previously of Board approval of the
payment of salary to First Vice President Strothman during the
calendar year 1964 at the rate of $25,000 per annum.
Very truly yours,
-2
• L,
Merritt
Secretary.
C
@FedFRASER