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Minutes for December 30, 1957 To: Members of the Board From: Office of the Secretary Attached is a copy of the minutes of the of the Federal Reserve System on Governors Board of date. the above 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 prebent 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 ry.r(3 Gov. Shepardson 1/ In accordance with Governor Shepardson's memo-Aandum of March 8, 1957, these minutes are not being sent to Governor Vardaman for initial. Minutes of actions taken by the Board of Governors of the Federal Reserve System on Monday, December 30, 1957. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Szymczak, Acting Chairman Mills Robertson Shepardson Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Kenyon, Assistant Secretary Leonard, Director, Division of Bank Operations Johnson, Director, Division of Personnel Administration Masters, Director, Division of Examinations Solomon, Assistant General Counsel Farrell, Assistant Director, Division of Bank Operations Sprecher, Assistant Director, Division of Personnel Administration 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, were approved unanimously: Item No. Letter to the Federal Reserve Bank of Philadelphia extending the time within which Peoples Trust Company of Wyomissing, Pa., Wyomissing, Pennsylvania, may establish a branch at 801 Penn Avenue. 1 Letter to the Federal Reserve Bank of Cleveland approving an investment in bank premises by Union Properties, Inc., a wholly-owned subsidiary of The Union Commerce Bank, Cleveland, Ohio. Letter to the Federal Reserve Bank of Cleveland extending the time within which The Cleveland Trust Company, Cleveland, Ohio, may establish a branch in Parma, Ohio. 3 12/30/57 -2Item No. Letter to the County Trust Company of Maryland, Cambridge, Maryland, approving the establishment of a branch in Riviera Beach, Anne Arundel County, Maryland. (For transmittal through the Federal Reserve Bank of Richmond) 5 Letter to the Federal Reserve Bank of Atlanta approving an investment in bank premises by the Deposit Guaranty Bank & Trust Company, Jackson, Mississippi. Telegrams to the Federal Reserve Agent at Atlanta authorizing the issuance of limited voting permits entitling Citizens and Southern Holding Company and The Citizens and Southern National Bank, both of Savannah, Georgia, to vote the stock which they own or control of The Augusta Citizens and Southern National Bank, Augusta, Georgia. 6, 7 Emoloyeest salary structure at Philadelphia Bank (Item No. 8). : the Federal Reserve Bank of With a letter dated December 10, 1957 Philadelphia submitted a request for approval of a proposed upward revision in the salary structure applicable to employees of that Bank. The letter indicated that the Bank's Board of Directors had authorized an across-the-board adjustment in salaries of five per cent, effective January 6, 1958, subject to approval of the structural adjustment by the Board of Governors. It also stated that the situation calling for the proposed salary adjustments arose after submission of the Bank's 1958 budget, that the impact of the general adjustment probably would not affect the total salary budget by as much as five per cent, but that it might come reasonably close to that amount. -3- 12/30/57 The file on the matter had been circulated to the members of the Board with the favorable recommendation of the Division of Personnel Administration and a suggested letter to the Philadelphia Reserve Bank which would indicate that the Board approved the proposed adjustment of the salary structure and the payment of salaries to employees within the limits specified for the respective grades of the structure. The letter would note the fact that salary increases resulting from the structure adjustment would result in exceeding the amount allowed for salaries in the Bank's 1958 budget. When the file was in circulation to the Board) Governor Shepardson indicated that he would like to discuss a possible change in the letter. Governor Shepardson referred at this meeting to the failure of the Philadelphia Bank to make any provision in its 1958 budget for the salary increases that would follow approval of the revised salary structure and stated that this raised a question in his mind whether the letter to the Bank should not make some comment on the situation beyond that suggested in the draft which had been circulated to the Board. He then offered two possible alternative paragraphs, the first of which would not necessarily require the submission of a revised budget but would call attention to the situation and request at least a rough estimate of the change in the budget that would be entailed in covering the salary increases. The alternative approach, which he favored, would be to state that in the Board's view the budget previously submitted had now lost much of its significance as a forecast of the cost 12/30/57 of operations and that a revised budget therefore should be submitted as soon as practicable. At Governor Shepardson's suggestion, Mr. Farrell then reviewed somewhat similar situations which had arisen at other Banks in connection with the budgets for 1958 or previous years. His comments indicated that it would not be out of line with the handling of other cases for the Board to ask the Philadelphia Bank to submit a revised 1958 budget. The other members of the Board expressed agreement with the position taken by Governor Shepardson. Accordingly, unanimous approval was given to a letter to the Federal Reserve Bank of Philadelphia in the form attached hereto as Item No. 8. Messrs. Johnson and Sprecher then withdrew from the meeting. Interest payment on Federal Reserve notes. There had been distributed to the members of the Board copies of a memorandum from the Division of Bank Operations dated December 27, 1957, which requested that the Board authorize sending to the Federal Reserve Banks on on January 2, 1958, the usual telegrams specifying the interest rates Federal Reserve notes for the last month of 1957. The memorandum stated that in accordance with the procedure established in 1952, an appropriate deduction, estimated at about $1.2 million, would be made from the net g its earnings of the Federal Reserve Bank of Dallas before computin interest payment in order that the Bank's surplus might be brought up to El figure equal to its subscribed capital stock, and that final figures might disclose the need for small deductions of a similar nature at two -5- 12/30/57 other Reserve Banks (Atlanta and Kansas City). It was for this reason that the matter had been brought to the Board for consideration, since the Board's action of September 19, 19570 provided that whenever any special allowances, adjustments, charge-offs, or other special circumstances were involved, the monthly payment would be presented to the Board for approval instead of being handled administratively. Following comments by Mr. Leonard, Governor Mills recalled that ns, in presenting to earlier this month the Division of Bank Operatio the Board for consideration various proposed year-end adjustments in Reserve Bank accounts, had estimated that the deduction from earnings at the Dallas Bank would be in the vicinity of $40o thousand, whereas the current estimate was $1.2 million. Messrs. Leonard and Farrell verified this situation and explained that the difference in estimates was accounted for by recent capital account increases on the part of member banks in the Dallas District, a subincluding particularly one large Dallas bank which had sold stantial amount of new capital stock. In further comments, they discussed the growth of bank capital in the Eleventh District over the past few years, which had several times required transfers from the earnings to the surplus of the Dallas Reserve Bank in order to keep the Bank's surplus equal to its subscribed capital. Thereupon, the authority requested in the memorandum from the Division of Bank Operations was granted by unanimous vote. 41 ' c- -6- 12/30/57 Absorption of The Citizens Bank, Attica, New York. Governor Robertson referred to the decision reached at the meeting on December 27, 1957, with Governor Shepardson dissenting, to deny the application of The Marine Trust Company of Western New Yorkl Buffalo, New York, for consent to its proposed absorption of The Citizens Bank, Attica, New York, and approval of the establishment of a branch in Attica at the location of the offices of The Citizens Bank. He stated that immediately following the meeting Mr. Nelson, Assistant Director of the Division of Examinations, advised the Federal Reserve Bank of New York informally of the Board's action and that shortly thereafter he (Governor Robertson) received a telephone call from Vice President Wiltse of the Reserve Bank, who said that Mr. G. S. Haxton had requested on behalf of himself and another director of the Attica bank an opportunity to appear before the Board concerning the matter. Governor Robertson went on to say that he told Mt. Wiltse he could not say whether the Board would meet with the a letter directors and the best procedure would be for them to address to the Board requesting an opportunity to be heard. Such a letter had been received in the Board's offices this morning. Governor Robertson also said that upon receiving the telephone call from Mr. Wiltse, he checked with the Secretary's Office and ascertained that the letter to the New York Reserve Bank advising of the Board's action had not yet been actually mailed. Therefore, after the conclusion had discussion of the situation with Governor Szymczak, been reached that, in the light of the developments which had taken 0 -7- 12/30/57 place, it would be better to hold the letter pending receipt of the request from the directors of the Attica bank. In further comments, Governor Robertson said that this morning he was visited by two officials of Marine Midland Corporation (Messrs. Bayard F. Pope and Baldwin Maull), that he told them of the reasons underlying the Board's decision on the application, and that Mr. Maull then stated that he would not have approved the proposed transaction if it had come to him in the first instance because The Marine Trust Company of Western New York would be paying considerably more for the Attica bank than it was worth. However, according to Mr. Maull, he had approved the matter when it came to him because the negotiations had already been substantially completed at an appropriate lower level. In Mr. Maull's opinion, the present branch of The Marine Trust Company in Attica could grow in any event, and it was merely a question whether the individuals owning the independent bank were to be given an opportunity to dispose of the institution through sale. In this connection, it appeared that the owners had attempted to arrange a sale of the bank to another Buffalo banking organization but had not been successful. Governor Mills then asked whether it would not be in accord with advising of the Board's customary procedure for the letter formally decision to be transmitted before a request for reconsideration was entertained. However, when it was brought out in subsequent discussion that in this instance the approved letter was addressed to the Federal Reserve Bank of New York, with the request that the applicant be advised by the Bank, he indicated that he would have no strong feeling on the matter. -8- 12/30/57 The members of the Board then indicated that they would be agreeable to complying with the request of Mr. Haxton to be heard. Accordingly, the Secretary was requested to get in touch with the Federal Reserve Bank of New York with a view to arranging for Mt. Haxton to appear before the Board on Monday, January 6, at which time it was anticipated that six members of the Board would be present. The meeting then adjourned. Secretary's Note: Governor Shepardson today approved on behalf of the Board the following letters and telegram, copies of which are attached hereto under the respective item numbers indicated: Item No. Letter to the Federal Reserve Bank of New York approving the designation of Patrick F. Callahan, Edward F. Odell, Benedict Rafanello, and William R. Skinner as special examiners. 9 Letter to the Federal Reserve Bank of Philadelphia approving the appointment of Albert K. Minter, Jr., as assistant examiner. 10 Letter to the Federal Reserve Bank of Clevelann approving the appointment of Michael Valentine Schaffer as assistant examiner. 11 Letter to the Federal Reserve Bank of Atlanta approving the reappointment of Charles Ray Chapman as assistant examiner. 12 Letter to the Federal Reserve Bank of Chicago approving the designation of Franklin D. Dreyer as special assistant examiner. 13 Telegram to the Federal Reserve Bank of Kansas City approving the appointment of John T. Fowler as assistant examiner. BOARD OF GOVERNORS OF THE otillml** ,." ..'0!ti, --, -...., ••••----04 01 0 0 04 0# Item No. 1 12/30/57 FEDERAL RESERVE SYSTEM 0 11 ) 0 0 0 WASHINGTON 25. D. C. AUOICtii• orricIAL CORRCIPOPIOENCIE TO THIC •OARO 142,S1 0 , 44000' December 30, 1957 Mr. E. C. Hill, Vice President, Federal Reserve Bank of Philadelphia, Philadelphia 1, Pennsylvania. Dear Mr. Hill: Reference is made to your letter of December 18, 1957, with regard to a request for an extension of time by Peoples Trust Company of Wyomissing, Pa., Wyomissing, Pennsylvania, to establish an in-town branch at 801 Penn Avenue. It is noted that because of unforeseen circumstances involving alterations to the property it will not be ready for occupancy by January 16, 1958, and the Reserve Bank recommends an extension of 60 days. In view of these circumstances, the Board extends until March 17, 1958, the time within which the bank may establish the branch as approved by the Board on July 16, 1957. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. BOARD OF GOVERNORS OF THE ejt y 44 %.1 Item NO, 2 12/30/57 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE 4.4 TO THE BOARD / 4 4 4000*** December 30, 1957 Mr. Paul C. Stetzelberger, Vice President, Federal Reserve Bank of Cleveland, Cleveland 1, Ohic. Pear Mr. Stetselberger: Reference is made to your letter of December 13, 1957, transmitting the request of The Union Commerce Bank, Cleveland, Ohio, for approval under the provisions of Section 24A of the Federal Reserve Act of en additional investment in bank premises by the bank's wholly owned subsidiary, Union Pronerties, Inc., for the purpose of completing construction of quarters for branches of the bank located at the northwest corner of Bridge Street and Carman Alley, Berea, Ohio, and the northeast corner of Berea and Triskett Roads, Cleveland, Ohio. After consideration of the information submitted and your favorable recommendation, the Board apnroves the investment by Union Provertdes, Inc., wholly owned subsidiary of The Union Commerce Bank, of :111.5,000 over and above the 911C,000 Previously approved for the purpose of constructing banking Premises for the above-described branches. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. )9 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 3 12/30/57 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 30, 1957 Mr. Paul C. Stetzelberger, Vice President, Federal Reserve Bank of Cleveland, Cleveland 1, Ohio. Dear Mr. Stetzelberger: 16, 1957, Reference is made to your letter of December land, Cleve ny, regarding the request of The Cleveland Trust Compa h branc a lish estab Ohio, for a six months extension of time to r corne west south in a shopping center to be constructed at the of Pleasant Valley and Broadview Roads, Parma, Ohio. under construcIt is noted that the shopping center is before June 1, 1958, and tion but will not be ready for occupancy sion of time until the State authorities have granted an exten necessary, additional time June 4, 1958, with assurance that, if will be granted. concurs in In view of these circumstances, the Board the time 1958, 17, July your recommendation and extends until h, under branc the lish estab within which the trust company may 1957. 17, ry Janua of r lette the Authorization contained in its Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. BOARD OF GOVERNORS OF THE AP.IV'4445:7 ,—. 4 ,..,---....--f.:z,,,, s.k1,1/4 .A. fR Item No. 4 FEDERAL RESERVE SYSTEM 12/30/57 WASHINGTON 25. D. C. * 4 0 as C' ADDRESS OFFICIAL CORRESPONDENCE 0 0 0 TO THE BOARD 410004.* December 30, 1957 Board of Directors County Trust Company of Maryland, Cambridge, Maryland. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Richmond, the Board of Governors of the Federal Reserve System approves the establishment of a branch on the north side of Smallwood Road near its right angle intersection known as Stony- Creek Road in the unincorporated community of Riviera Beach, Anne Arundel County, Trust Company of Maryland, Cambridge, Maryland, by Maryland, provided (1) the branch is established within one year from the date of this letter, and (2) the approval of the State authorities is in effect as of the date of the establishment of the branch. It is understood that the County Trust Company of Maryland will increase its capital stock to approximately $1,450,000 prior to establishment of the branch. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. BOARD OF GOVERNORS OF THE 4,0;0115)44,, FEDERAL RESERVE SYSTEM A4. 4 4, Item No. 5 12/30/57 WASHINGTON 25. D. C. * ADDRESS OFTICIAL CORRESPONDENCE J, TO THE I30ARD 4004*** December 30, 1957 Mr. J. E. Denmark, Vice President, Federal Reserve Bank of Atlanta, Atlanta 3, Georgia. Dear Mr. Denmark: Reference is made to your letter of December 13, 1957, submitting with a favorable recommendation a recuest of the Deposit Guaranty Bank & Trust Company, Jackson, Mississippi, for permission under Section 24A of the Federal Reserve Act to invest $4,400,000 in connection with its program for remodeling and ex00 panding its main office banking premises in lieu of the $4,100,0 1956. 3, December investment approved by the Board on The Board has given consideration to the information subnow mitted and, due to the reported increased construction costs, 00 $4,400,0 exceed to not of approves an investment in banking premises ppi, Mississi Jackson, by the Deposit Guaranty Bank & Trust Company, for the purpose of remodeling and expanding its main office premises. of This approval supersedes the approval given in the Board's lettek. gly. accordin company trust the December 3, 1956. Please advise Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. TELEGRAM LEASED WIRE SERVICE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON Item No. 6 12/30/57 December 30, 1957 MITCHELL - ATLANTA KECEA A. Citizens and Southern Holding Company, Savannah, Georgia. B. The Augusta Citizens and Southern National Bank, Augusta, Georgia. C. None. D. At any time prior to April 1, 1958, at the annual meeting of such bank, or any adjournments thereof, (1) to elect directors and to act thereat upon such matters of a routine nature as are ordinarily acted upon at the annual meeting of such bank, and (2) to increase the capital of such bank and take all action necessary in connection therewith, provided that all action taken shall be in accordance with plans satisfactory to the Comptroller of the Currency. (Signed) Merritt Sherman SHERMAN KECEA - The Board authorizes the issuance of a limited voting permit, under the provisions of section 5144 of the Revised Statutes of the United States, to the holding company affiliate named below after the letter "AP, entitling such organization to vote the stock which it awns or controls of the bank(s) named below after the letter "B", subject to the condition(s) stated below after the letter "C". The permit authorized hereunder is limited to the period of time and the purposes stated after the letter "D". Please proceed in accordance with the instructions contained in the Board's letter of March 10, 1947, (S-964). I Item No. 7 TELEGRAM 12/30/57 LEASED WIRE SERVICE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON December 30, 1957 MITCHELL - ATLANTA KECEA A. The Citizens and Southern National Bank, Savannah, Georgia. B. The Augusta Citizens and Southern National Bank, Augusta, Georgia. C. None. D. At any time prior to April 1, 1958, at the annual meeting of such bank, or any adjournments thereof, (1) to elect directors and to act thereat upon such matters of a routine nature as are ordinarily acted upon at the annual meeting of such bank, and (2) to increase the capital of such bank and takc all action necessary in connection therewith, provided that all action taken shall be in accordance with plans satisfactory to the Comptroller of the Currency. (Signed) Merritt Sherman SiERMAN KECEA - The Board authorizes the issuance of a limited voting permit, under the provisions of section 5144 of the Revised Statutes of the United States, to the holding company affiliate named below after the letter "A", entitling such organization to vote the stock which it awns or controls of the bank(s) nsmed below after the letter "B", subject to the condition(s) stated below after the letter "C". The permit authorized hereunder is limited to the period of time and the purposes stated after the letter "D". Please proceed in accordance with the instructions contained in the Board's letter of March 10, 1947, (S-964). rikoky c BOARD OF GOVERNORS OF THE Item No. 8 FEDERAL RESERVE SYSTEM 12/30/57 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE 44. TO THE BOARD December 30, 1957 CONFIDENTIAL (FR) Mr. Alfred H. Williams, President, Federal Reserve Bank of Philadelphia, Philadelphia 1, Pennsylvania. Dear Mr. Williams: In accordance with your letter of December 10, 1957, the Board of Governors approves the following minimum and maximum salaries for the respective grades of the employeest salary structure effective January 6, 1958: Grade Salary Minimum — 1 2 2,200 3 14 5 6 7 8 9 lo 11 2,300 2,620 3,040 3,460 3,880 4,300 4,830 5,250 5,780 12 6,/100 13 14 15 16 7,040 7,780 8,520 9,350 Maximum Salary 2,640 3,050 3,570 14,-loo 4,650 5,250 5,880 6,51.0 7,140 7,870 8,70o 9,550 lo,400 ]J,45o 12,500 The Board approves the payment of salaries to the employees, Other than officers, within the limits specified for the grades in which the positions of the respective employees are classified. It is assumed Mr. Alfred H. Williams -2- 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. The Board also approves the payment of salary to the following part-time employees at the rates indicated: Annual Salary Name Title Catherine Bellas Lillian F. Lohmuller Pauline F. Higgins Officers' Waitress Officers' Waitress Officers' '4aitress William S. Magee Medical Director $1,894 1,894 1,894 5,818 It is noted that your Board of Directors has authorized an across-the-board salary adjustment of 5 per cent subject to the approval of the structural adjustment by the Board of Governors, and that the contemplated general adjustment may affect the budget by as much as 5 per cent. In view of the size and wide-spread effect of the proposed general salary increase, the Board feels that the budget previously submitted has lost much of its significance as a forecast of the cost of operations and, accordingly, requests that a revised budget reflecting the cost of the general increase be submitted as soon as practicable. en er„ Secretary. BOARD OF GOVERNORS OF THE n'P,40 Ott CND', . 4.• a 4,te Item No. 9 FEDERAL RESERVE SYSTEM • 12/30/57 WASHINGTON 25. D. C. !R al ADDRESS ,4 OFFICIAL CORRESPONDENCE TO THE BOARD December 30, 1957 Mr. John F. Pierce, Chief Examiner, Federal Reserve Bank of New York, New York 45, New York. Dear Mr. Pierce: In accordance with the request contained in your letter of December 19, 1957, the Board approves the following named individuals, who have been assigned to the Technical Assistance Divieion of the Bank Relations Department, as special examiners for the Federal Reserve Bank of New York: Patrick F. Callahan Edward F. Odell Benedict Rafanello William R. Skinner We are terminating the original appointments of these individuals as examiners for the Federal Reserve Bank of New York. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM 4 Item No. 10 12/30/57 WASHINGTON 25. D. C. AOORCEIS OFFICIAL CORRESPONOIENCE TO THE IBOARO 4 1 / *t724a. December 30, 1957 Mr. Joseph R. Campbell, Assistant Vice President, Federal Reserve Bank of Philadelphia, Philadelphia 1, Pennsylvania. Dear Mr. Campbell: In accordance with the request contained in your of letter December 26, 1957, the Board approves the appointAlbert ment of K. Minter, Jr. as an assistant examiner for the Federal Reserve Bank of Philadelphia. Please advise the Board if the appointment is not made effective January 6, 1958, as planned. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. BOARD OF GOVERNORS OF THE Item No. 11 12/30/57 FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE SOARD December 30, Ni'. Paul C. Stetzelberger, Vice President, Federal Reserve Bank of Cleveland Cleveland 1, Ohio. Dear Mr. Stetzelberger: In accordance with the request contained in your letter of December 20, 1957, the Board approves the appointment of Michael Valentine Schaffer as an assistant examiner for the Federal Reserve Bank of Cleveland. Please advise as to the date upon which the appointment is made effective. Very truly yours, (Signed) Merritt Shermail Merritt Sherman, Assistant Secretary. 1957 BOARD OF GOVERNORS OF THE CO Cr41 FEDERAL RESERVE SYSTEM * SO' WASHINGTON 25. D. C. 0 4, 4a 44 0 0. Item No. 12 12/30/57 ADDREfiri CIFFICIAL CORRESPONOENCE TO THE ISOARO 00.4%4,4- December 30, 1957 Mr. J. E. Denmark, Vice President, Federal Reserve Bank of Atlanta, Atlanta 3, Georgia. Dear Mr. Denmark: In accordance with the request contained in your letter of December 24, 1957, the Board approves the reappointment of Charles Ray Chapman as an assistant examiner for the Federal Reserve Bank of Atlanta. If the reappointment is not made effective January 27, 1958, as planned, please advise us. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. BOARD OF GOVERNORS OF THE Item No. 13 FEDERAL RESERVE SYSTEM 12/30/57 WASHINGTON 25. D. C. ADDREGS OFFICIAL CORRESPONDENCE TO THE BOARD December 30, 1957 Mr. W. R. Diercks, Vice President, Federal Reserve Bank of Chicago, Chicago 90, Illinois. Dear Mr. Diercks: In accordance with the request contained in your letter of December 23, 1957, the Board approves the designation of Franklin D. Dreyer as a special assistant examiner for the Federal Reserve Bank of Chicago. Please advise as to the date upon which the designation is made effective. It is noted that Mr. Dreyer is indebted to The New American Bank of Oshkosh, Oshkosh, Wisconsin, a nonmember bank, in the amount of $360. Accordingly, the Board's approval is given with the understanding that Mr. Dreyer will not participate in any examination of The New American Bank of Oshkosh, Oshkosh, Wisconsin, until his indebtedness to the bank has been liquidated. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. TELEGRAM LEASED WIRE SERVICE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON Item No. 3.4 / 12/30/57 December 30, 1957. 14DOLLEY - KANSAS CTrY Reurlet December 17. 1957. Board approves the appointment of John T. Fowler as an assistant examiner for the Federal Reserve Bank of Kansas City, effective January 1, 19580 It is noted that members of Mr. Fowler's family have interests in three nonmember banks in Kansas and it is understood that he 411 not be permitted to participate in any examinations of such banks or institutions in direct competition therewith. (Signed) Merritt Sherman SHERMAN
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