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Minutes for To: December 8, 1959. 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. Chm. 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 8, 1959. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Mr. The Board met in the Board Room at 10:00 a.m. Martin, Chairman Balderston, Vice Chairman Szymczak Mills Robertson Shepardson King Sherman, Secretary Thomas, Economic Adviser to the Board Shay, Legislative Counsel Molony, Assistant to the Board Hackley, General Counsel Farrell, Director, Division of Bank Operations Mr. Solomon,Director, Division of Examinations Mr. Noyes, Adviser, Division of Research and Statistics Mr. Robinson, Adviser, Division of Research and Statistics Mr. Hexter, Assistant General Counsel Mr. Daniels, Assistant Director, Division of Bank Operations Mr. Nelson, Assistant Director, Division of Examinations Mr. Harris, Coordinator, Office of Defense Planning Mr. Landry, Assistant to the Secretary Mr. Robert Solomon, Senior Economist, Division of Research and Statistics Mr. Mr. Mr. Mr. Mr. Mr. Oklahoma City Branch building plans. There had been circulated e lllemorandum from the Division of Bank Operations dated November 25, ' 195n -7, bringing to the Boardts attention a development arising from the 41ardss request of August 23, 1959, that the plans of the Kansas City ilael*ve Bank for the proposed addition to the Oklahoma City Branch bllilding, authorized by the Board on June 12, 1959, should include 12/8/59 -2- Provision for a fallout shelter. The memorandum noted that the Bank Proposed to place the fallout shelter in the area now under the existparking garage in contrast to the original plan, which was to build the proposed addition around the parking garage, and that the tievr proposal by the architects for the Oklahoma City Branch building vas submitted to the Division of Bank Operations with a letter dated °etober 22, 1959, from Mr. Clay, Vice President of the Kansas City Reserve Bank, who made no comment on the proposal. The memorandum vent on to say that in order to place the fallout shelter in the area 1lUder the existing parking garage it would be necessary to demolish the garage, strengthen the footings, and rebuild the parking garage essentially as it now stands; and that Mr. Witherell, the Board's e°4sulting Architect, believed the plan was not practical. The memo- listed three alternative courses of action that might be taken bY the Board in the light of the foregoing developments: (1) abandon the requirement of a fallout shelter and authorize the Bank to go ahead /rith its original plans; (2) inform the Bank that the Board was opposed t° the idea of demolishing and rebuilding the parking structure and that a new plan should be developed that would not hinge upon the alrailability of the parking garage in its present form; (3) inform the Bank that the problems and limitations of an addition on the present Bite appeared to be of sufficient importance to justify further investi- ation of the possibility of securing a site for construction of an etItirely new building. 4237 12/8/59 -3Mr. Farrell observed that a resolution adopted by the directors °f the Oklahoma City Branch on November 14, 1959, in effect rejected the approach suggested in alternative (2) above, and that the idea incorporated in alternative (3) was abandoned in 1958 because of a feeling on the part of local banks that the Branch should stay in its Present location, some doubt that another suitable site could be obtained, and favorable reactions to the recently completed addition at Omaha. Governor Robertson commented that since it is the Government's P°11eY that fallout shelter shall be incorporated, in all Government b4ildings designed after May 15, 1958, partly to set an example for industry to do likewise, the Board should make certain that all alternatives had been exhausted before deciding to abandon the requirement °f a fallout shelter in the plans for the proposed addition to the °klahoma City Branch building. In his judgment, the existing parking garage should not be torn down, but on the other hand the parking garage 14as not essential for the new building. He suggested that the matter be r eturned ' to the boards of directors of the Kansas City Reserve Bank and the Oklahoma City Branch for further study, even if it meant constr4eting a new building on another site. Even though no further alter- es were developed, such action by the Board of Governors would Pr"ide a better record. Governor Mills concurred in this view, stating that the proposal eubmitted by the directors of the Oklahoma City Branch appeared to be crutte unusual. 12/8/60 -4Observing that the minimum cost for a fallout shelter to ac- commodate 200 people was between $30,000 and $40,000 and that the Proposal to continue the parking garage in the Oklahoma City Branch building involved an expenditure of $67,000 to strengthen the footOf the building, Mr. Farrell remarked that a primary interest I the Branch was in getting a new building which incorporated sub" talatial parking space and that the directors appeared to have no substantial interest in a fallout shelter. When Mr. Clay suggested to them that they reconsider their suggestion, he had received no supPort. Governor Shepardson commented that the Branch directors should illvestigate the problem further. He raised the question whether it /r°111d be possible for parking space to be provided in the basement °f the new addition, to which Mr. Daniels replied that this undertaking 11°111d be expensive because the ground on which the present building l'ests consists of hard shale. The expense of removing this substance 114c1 been the reason a basement was not built originally. Governor Mills then proposed that Messrs. Farrell and Daniels illsPect the situation at the Oklahoma City Branch and inform the Board c't their impressions, and Mr. Farrell noted that Mr. Witherell, the 11°41"dits Consulting Architect, had not visited the Oklahoma City Branch /31sior to flaking his evaluation of the project, which was based on an in6Pection of the plans. 12/8/59 Governor King suggested that, since the Board of Directors °f the Oklahoma City Branch would be partially reconstituted with he start of the new year, it might be appropriate to confer with the new members on this question. ling a brief discussion as to whether it would be desirable to send a representative from the Board to consult with the Board of Directors of the Oklahoma City Branch, it was decided to efer action until after January 1, 1960, when a member of the Board's and the Consulting Architect might .60 to Oklahoma City for that Purpos,. Item distributed to the Board. The following item, which had been distributed to the Board and a copy of which is attached as Item Nn was unanaimously approved: Letter to the Trust Company of Georgia, Atlanta, Georgia, concerning proposed transactions involving Trusco Finance Company, a subsidiary. Messrs. Hurris and Hexter withdrew from the meeting at this 13°int) and Mr. Fauver, Assistant to the Board, entered the room during the ensui g 11 _discussion. Letters regarding Regulation Q. There had been distributed lette re from the Farmers and Merchants Bank of Long Beach, Long Beach, Calif° rnie, The First National Bank of Anniston, Anniston, Alabama, " 4 Michigan National Bank, Lansing, Michigan, dated December 1, 2, and -6- 12/6/59 ^ 4 1959, respectively, regarding maximum interest rates permissible under Regulation Q, Payment of Interest on Deposits. By way of introduction to the subject, the Chairman observed that there had been an apparent diminution of interest recently on the part of large banks in New York City regarding an increase in the inaximlm interest rates payable on time deposits, particularly those c)%rtied by foreign accounts. Upon inquiring into the reason, he had been informed that these banks were ubIng their foreign branches to Pay a higher rate on time deposits. A discussion ensued as to whether the funds in question would be denominated in foreign currencies or in American dollars, during Ilbien an accounting technique that might be employed was mentioned. The Chairran said that it was his thinking on the question that if the rate level established on such deposits was considerably higher than that currently permitted under Regulation Q, adjustments obviously /4°41d have to be made at some point. However, he disliked making a "in the maximum permissible rate at year end, particularly in hah °f the fact that the Board had waited so long since the last up14" adiustment in the maximum permissible rate. He went on to say that it action were to be taken at this time, that should be done within the next few days in order that banks might make announcements of the l'ates they wild pay by January 1. However, he was disposed to defer "tiOn and take another look at the question at the end of January 1960. Governor Robertson concurred in the views of the Chairman. 12/8/60 Governor Mills suggested that if the inclination of the Board 1418 to make an upward adjustment in the interest ceiling on savings and time deposits under Regulation Q, it should do so only after careful allalYaia of the competitive impact on smaller banks. He had been impressed by the most recent semi-annual report of member bank earnings a/1d expenses, which shoved that medium-sized country banks had an slm°st equal division between their savings and demand deposits. There- f°re, an increase in the interest rate paid on savings deposits would constitute a formidable cost for them. 'were He also noted that the banks that most vocal in seeking an increase in the rate ceiling had, in general, a relatively moderate percentage of their total deposits in the +4 "rile and savings categories. In the case of the banks in New York citv, -4 Particularly, not only were time deposits a small percentage of thei 4 total deposits but the owners of the deposits constituted valuable c*ustomers for the banks. Furthermore, domestic competition was most severe for commercial banks from the savings and loan associations, which in 0"\Jrne and the instances were paying rates as high as 4 and 4-1/2 per cent, Board might find itself subject to charges of contributing to 1141 imPairment of the quality and standards of commercial banks, investr,-verations should it decide to raise the maximum rate under Regulati°11 q higher than 3 per cent. Governor Balderston suggested that a procedure that the Board could f °110w, should interest rates remain high or go higher in 1960, 12/8/59 voUld be to ask the staff for a thorough study of the expenses and earnings of banks throughout the nation so that at an early date after the first of the new year the Board -would have an answer to the cmstion raised by Governor Mills. He observed that if reports 811°111c1 reveal that earnings of city banks had increased in 1959 over the previous year, the Board might be subject to the charge of failure to act in the face of a changed situation at the expense of savers. M. Robinson commented that the New York Reserve Bank had been stlidYing the problem of what banks can afford to pay on savings and time depos its. Although this study was not exactly the type that Gclrernor Balderston had suggested, preliminary drafts confirmed the P°Irlt expressed by Governor Mills; namely, that there were great differences among individual banks in this respect and that some banks 144ieh were highly competitive and able to pay higher rates of interest —4410u8 to do so, while other banks were not in such a position alld were not so competitive. He noted that this created a dilemma of 11(11? to provide maximum rates that on the one hand would permit vigorous 13811ks to me„,.4 other competition and at the same time would be reasonable for banks: As he saw it, the interest rate ceiling under Regulation Q 14118 841 almost unworkable provision of law. If fixed to take into acc0114t the average ability of banks to compete for funds, it acted to 'curb the more competitively minded banks. 12/8/59 -9there Following a comment from Governor Shepardson that no compulsion for banks to set their rates at the ceiling and that a large number of competitive banks apparently did not feel a comPulsion to move to the ceiling level, Governor Robertson observed that if the Board should seek legislation to remove the ceiling limitation) a move should be made at the same time to strengthen the hand 131' bank supervisors to prevent the development of unsound bank investment policies. At the conclusion of the discussion, it was agreed that the queation of the maximum interest rate payable under Regulation Q would ,_ be ta " L`LI up again early in 1960. Mr. Riefler, Assistant to the Chairman, entered the room at this Point and Mr. Nelson withdrew. Draft letter to Congressman Spence... There had been distributed a memorandum from Mr. Young dated December 2, 1959, to which was attached a draft of reply to Congressman Spence, Chairman of the House C°Mmittee on Banking and Currency, regarding his request for a report Or ilouse Concurrent Resolution 196. Following a brief discussion during which certain changes were slIggeated - in the proposed letter, Governor Robertson asked about the Studv Of requested in the House Banking and Currency Committee's report I JAB+ May on bill S. 1120, referred to in the letter to Congressman 12/3/59 -10- Spence, and Mr. Shay replied that it concerned the use of reserve re quirements as a tool of monetary management. The Committee had imade the Suggestion to the Board for such a study in the light of testi°IlY by Chairman Martin which dealt with the use of policy instruments av ailable to the Federal Reserve. Mr. Noyes commented that the staff was working on this study aId that a memorandam had been drafted. In answer to a question from GOIre ra0r Robertson, he said the report was due early in the next session or CQIngress and that Mr. Young had in mind either including the study in the m -u0ard's Annual Report, should the Board so desire, or transmitting it seParately to the House Banking and Currency Committee. 0a In response further question from Governor Robertson, he said it was hoped that the 4-8--dY would be in form for consideration by the Board before he end of this month. Mr. Shay suggested that the study should be ready for transmittal to the Hou e Banking and Currency Committee by about January 15, 1960, since this Committee had specifically requested it, and that its in- eitasion in nnual Report would be incidental. shoula It was then agreed that the procedure suggested by Mr. Shay Qe followed with respect to the special study and that the pro- 1etter to Congressman Spence on House Concurrent Resolution 196 sholaid e revised to incorporate changes suggested this morning, with a. viev to further consideration at tomorrow's meeting of the Board. 12/3/59 -11Messrs. Smith, Assistant Director, and Schaeffer, Chief Pederal Reserve Examiner, Division of Examinations, entered the room dul'ing the foregoing discussion, and Messrs. Riefler, Shay, Noyes, and Landry withdrew from the meeting at this point. Report of examination of Boston Reserve Bank. Mr. Smith reviewed the report of examination of the Federal Reserve Bank of Boston as of July 31, 1959, which had been circulated to the members of the Board 1111-°r to this meeting. No matters appearing to require the further ttention of the Board were disclosed during this examination. At Governor Robertson's request, Mr. Schaeffer, who was in Ike atm, hin---- today in connection with another matter, commented on the Inallagement and senior personnel situation at the Federal Reserve Bank c't Boston. r'eePect to Following those comments, Mr. Schaeffer also reported with personnel on the Board's field force. Members of the staff other than Messrs. Sherman, Molony, and /a4ver then withdrew from the meeting. Director appointments. or the Chairman Martin noted that consideration appointment of directors to vacancies on the boards of the New 0 - and Memphis Branches had been deferred yesterday in view of Golrernor King's absence. He then asked Governor King for his suggestions 14 c°nnection with these two appointments. As a result of these suggestions, the Board unanimously authorized taking the usual steps to "certain whether the individuals indicated below were eligible and vibllic/ accept appointment and, if so, the tendering of such appointments. 12/8/59 -12-- 1. To appoint J. Oliver Emmerich of McComb, Mississippi, as a director of the New Orleans Branch of the Federal Reserve Bank of Atlanta for the three-year term beginning January 1, 1960. 2. TO appoint Clay Lyle of State College, Mississippi, as s director of the Memphis Branch of the Federal Reserve Bank of St. Louis for the three-year term beginning January 1, 1960. Mr. Fauver reported that word had been received from Chairman SIIPPlee of the Federal Reserve Bank of Philadelphia that William P. take of Philadelphia would not accept appointment as a director of the Federal Reserve Bank of Philadelphia, since that would require his resignation as a director of a commercial bank. Mr. Supplee was in process of developing a suggestion for the appointment of a person h° vas not presently a director of a commercial bank, and expected t° submit a proposal within the next day or two. Mr. Molony withdrew from the meeting at this point. Chairman Martin stated that he had received a telephone call from Chairman Hall of the Federal Reserve Bank of Kansas City with realoect to the proposed appointment of Gale B. Aydelott of Denver as a director of the Denver Branch of that Bank. He stated that Mr. 4Ydelott was somewhat reluctant to resign as a director of the First 4t1nal Bank of Denver and that he was particularly reluctant to reBign as a director of the First Security Corporation, Salt Lake City, in order to accept the appointment, in view of the importance of these other connections in his work as President of the Denver and Rio Grande 12/8/59 -.13- Western Railroad. Chairman Martin said Mr. Hall had pointed out that the Boardts regulations relating to Federal Reserve Bank branches do not make it mandatory that a director of a Federal Reserve Bank branch not be a director of a commercial bank. Therefore, Chairman Hall was 41Peful that the Board might be willing to make an exception to its Practice of not appointing as branch directors men who are already commercial bank directors. There followed a discussion of the provisions of the branch regulations, at the conclusion of which Chairman Martin suggested that the regulations be reviewed at an early date for the purpose of deterwhether they should be amended to preclude the appointment as a director of a Federal Reserve Bank branch of any person who is serving as a director of a commercial bank. He then stated that he understood from Mr. Hall that Mr. Aydelott would probably conclude that he would " II accept appointment as a branch director if his resignation as a di mctor of the First National Bank, Denver, and the First Security Corporation, Salt Lake City, was required. As an alternate, in the event Mr. Aydelott did not accept appointment, Chairman Martin suggested that the Board authorize the taking of the customary steps to ascertain Aether Frank Johns of Denver would be eligible and would accept appointMent as a director of the Denver Branch for the two-year term beginning JanWary 1, 1960, This suggestion was approved unanimously. Thereupon the meeting adjourned. 4249 12/3/59 Secretaryts Notes: On November 25, 1959, Governor Shepardson approved on behalf of the Board a letter to all Reserve Bank Presidents which would transmit forms for the use of State member banks and their affiliates in submitting reports as of the next call date. The foregoing letter was not actually mailed, and on December 8, 1959, Governor Shepardson approved on behalf of the Board a revised letter, reflecting changes in the forms occasioned by the Board's action relating to inclusion of a portion of vault cash in reserves, effective December 1, 1959, for central reserve and reserve city banks and December 3, 1959, for other member banks. The letter was sent on December 9, 1959, in the form attached as Item No. 2. Pursuant to the understanding at the meeting on November 9, 1959, and subsequent informal discussions, a letter was sent today to the Presidents of all Federal Reserve Banks transmitting copies of a letter dated October 30, 1959, from the Under Secretary of the Treasury regarding participation by the Federal Reserve Banks in the Treasury savings bond program, together with copies of Chairman Martin's reply to Mr. Baird dated November 30 and the Under Secretary's acknowledgment of the same day. Copies of the October 30 letter from Mr. Baird and of the Chairman's reply of November 30 are attached as Items 3 and 4. Governor Shepardson today approved on behalf of the Board a letter to the Federal Reserve Bank of Richmond (attached Item No. 5) approving the appointment of Robert Baker Thornton as assistant examiner. Secreta7 BOARD OF GOVERNORS 444,14***4* 4,,,w4ol, OF THE !T FEDERAL RESERVE SYSTEM Item No. 1 12/B/59 WASHINGTON 25. D. C. )0; ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD tL 1%t Mr, C. E. Thwaite, Jr., Chairman of the Board, Trust Company of Georgia, Atlanta 2, Georgia. December 8, 1959 Dear Mr, Thwaite: This is with reference to your letter of November 17, 1959, addressed to President Bryan af the Federal Reserve Bank of Atlanta, relating to transac tions in connection with a contemplated sale of "le assets of Trusco Finance Company . Trusco proposes to sell all of its assets for $2,7000000 811 and to cease to engage in the business of purchasing automobile '.?nance paper. (It is presumed that the purchas er of Trusco's assets /*Grill not be controlled, directly or indirectly, by Trust Company of e°rgia.) Thereupon, ownership of all the stock of Trusco will be transferdj from Trust Company of Georgia Associates to Trust Company ' 13 Georgia. Trusco's charter will be amended "to limit its corporate JI : ers to those of a bank premises company, with further provision 8:,t funds not invested in bank premises may be invested only in such Ceurities and assets as are permissible investm ents for State member c l_lks of the Federal Reserve System." Thereafter, Trusco will parGeorg. certain of the bank premises now owned by Trust Company of It is inferred that all properties held by Trusco will eon stitute bank premises of Trust Company of Georgia. It is also preat Trusco's investments in securities and assets other than 11k premises will be in such limited amounts that Trusco may properly regarded as engaging solely in holding bank premise s, its other bn:!stments being incidental and subordinate to its operations as a -4 premises subsidiary. 4 On the basis of the foregoing facts and assumptions, the Boarri letC sees no objection to consummation of the plan described in your r, and the Board grants its approval, pursuant to section 24A, of the: are .cederal Reserve Act, to the extent that the propose d transactions governed by that provisi on of law. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE Mk; FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 2 12/B/59 ADDRESS -OFFICIAL CORRESPONDENCE TO THE BOARD December 9) 1959 Dear Si The indicated number of copies of the following farms are bet., rile2g forwarded to your Bank under separate cover for use of State rle'Llper banks and their affiliates in submitting reports as of the At call , date. A copy of each form is, attached. Nalb r of Form F.R. 105 (Call No. 154), Report of condition of State member banks. Form F.R. 105a (Revised November 1959), Instructions for the Preparation of Reports of Condition of State Member Banks. * Form F.R. 105e (Revised November 1955), Publisher's copy of report of condition of State member banks. Form F.R. 105e-1 (Revised November 1955), Publisher's copy of report of condition of State member banks. Form F.R. 105e-2 (Revised November 1955), Publisher's copy supplement. Form F.R. 220 (Revised March 1952), Report of affiliate or holding company affiliate. Form F.R. 220a (Revised March 1952), Publisher's copy of report of affiliate or holding company affiliate. e fóiiarded on receipt from printer. —2With the exception of form F.R. 105a and the handling of S chedule A on form F.R. 105, all of the forms are the same as those used on October 6, 1959. loanThe new instructions include revisions incident to the new e to financial institutions item in Schedule A, the reporting tjocadure for securities bought under resale and similar agreements, "d clarifying changes on other items such as the classification of ,e relatively new revolving credit, check credit, and retail charge 'Account credit tyres of loans. j The new instructions have also been amended for consistency oithThe f,-he to Regulation D3 forwarded with the Board's letter C0 "°vember 30, regarding drafts drawn upon or other authorizations ° of charge the member banks! reserve accounts. However, the reports st condition had already been printed for the forthcoming call and noaite member banks should be notified that item 6 of Schedule E need cnger contain these amounts. This change in the instructions will ' not bonl a!fect the many small banks that have heretofore reduced their own 4 balance of the amount held at the Reserve Bank when these drafts dra7m. Other banks that desire to synchronize their own book ar„0"nce with the Reserve Bank books should be advised that these schunte may be reported as other liabilities, against item 5 of thecule I; no change was made in the printed instructions regarding latter item. Very truly Tars, 1 CA Merrit S4erman, Secroeary. 41closures Item No. UNDER SECRETARY OF THE TREASURY 3 12/8/59 WASH I NGTON October 30, 1959 13e4r Canby: re. To keep our Savings Bonds program moving ahead, we must periodically of enlist and stimulate the volunteers on whom we depend so heavily. One elajhe best ways we have found of doing this is to gather together influth,,el citizens, tell them very frankly what is involved and why we need me : 1r help., and ask them to take the leadership in their communities to ourto certain goals and enlist others to help in the program. If we tell rY effectively, we are able to arouse their enthusiasm and support. com For example, last February we invited the heads of 350 of the largest 14.ies 1 in the country to Washington, gave them the facts, and asked 507 Lo make company drives to increase payroll-savings participation to beWr better. Bill Martin participated in that meeting. The results have irlterverY well worthwhile. In fact, in spite of the delay in raising the has est rate on Savings Bonds, the payroll deduction program in industry moved ahead. t1: 1 fin Our major effort in 1960 will be to enlist some 4,000 firms, having /4:"4 or more employees each, to make intensive payroll-savings drives. 84 the newly improved rates and extension terms for Savings Bonds as sailing points, we should be able to reverse the unfavorable trend in and redemptions the hin casting about for an effective way to get our message across to reajoead s of the 4,000-odd companies, we hit upon the idea of holding (44 lal luncheon or dinner meetings. As more than half of these companies 44d 13/Infth d of the employees) are located in the 12 Federal Reserve cities to hol aranch Federal Reserve cities, those would seem the logical places 'd the meetings. the Fil ecalturally, we then thought of asking the Presidents and Managers of 14ould "'al Reserve banks to co-sponsor these regional meetings. Not only taot1 theY lend prestige and influence to the occasions, but, more importt e4, they have an understanding of our problems and an ability to convey °f th etivelY. Last but not least, they have the means to cover the cost ondse luncheons or dinners, as the case may be. As you know, the Savings geaeroP--nriogram operates on a very limited budget, and we must rely on the tY of others to pay for the cost of functions of this kind. serveWhile we would like to have the heads of the Federal Reserve banks , . ns co-chairmen of the regional campaign committees, we would try to vur demands on them to the earlier planning stages and the top -2ateanagement meetings. In each region, a key industrialist who is an experirnced and strong Bond supporter will serve as the key co-chairman of the ctelgional campaign committee, supported by the volunteer State Savings Bonds ofaircaan, or Chairmen, located in each region. These people, with the help ca the paid Savings Bonds staff, will have the main responsibility for rrYing the regional campaigns through to a successful conclusion. „ Briefly, we would ask the President or Manager in each of the 25 Federal neserve Cities to: (1) Serve as co-chairman of the regional campaign committee. (2)Attend a briefing meeting in Washington lasting from 10:00 AM to 2:30 PM, probably on January 26, with the industrialists and State Chairmen. (3) Together with the industrialist and State Chairman, organize the regional top management meeting (luncheon or dinner) to Which the top executives of firms with 1,000 and more employees would be invited. (4) Co-sign, with the industrialist and possibly the State Chairman, the letters of invitation to the top executives. (5) Speak at the meeting and help explain the problem, the objectives, and the need for increased Savings Bonds sales. (6) PaY for the luncheons or dinners for the group. Of thWe expect that Secretary Anderson will be able to speak at one or two plan e keY regional meetings, perhaps in New York and Chicago, and I will otherto sPaak at three or four others. We might also line up some of the cials here in the Treasury to take on a few more of the meetings. us ouThis, briefly, is our proposal. I hope very much that you can help ta this important undertaking. firmsAtitached is a list of the Federal Reserve cities and the number of sie each instance that we would contemplate having invited to the etings. /..-ilticerely yours, JU1lan B. Baird !he ViceHonorable C. Canby Balderston BoardChairman of Go vernors of the Federal Reserve System 4aahington 25, D. C. TOP MANAGEMENT MEETINGS Federal Reserve District 1 2 2 3 4 14 14 5 5 5 6 6 6 6 6 7 7 8 8 City Firms to be Invited Boston 320 Firms' Employment 1,000 and up *686 165 1,000 500 Philadelphia 257 1,000 Cleveland Cincinnati Pittsburgh 175 167 181 1,000 500 1,000 Richmond Baltimore Charlotte 118 132 118 1,000 500 1,000 Atlanta Birmingham Jacksonville Nashville New Orleans 209 115 105 103 155 500 500 500 *427 157 281 New York Buffalo Chicago Detroit II II It 1,000 1,000 II II II II tt 11 II 500 500 St. Louis Louisville 134 500 500 Minneapolis 183 500 Kansas City lob 500 It Dallas Houston 1)42 1214 500 . 11 500 " San Francisco Los Angeles Seattle 108 198 108 1,000 1,000 500 9 10 11 11 12 12 12 * E r4P1oyment minimums for New York and Chicago will be raised to 2,500 to keep meetings to workable size. t,otettt*t.q 04 Item No. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM 4 12/8/59 WAS zuftst-s-Ap ' . OFFICE OF THE CHAIRMAN November 30, 1959 Dear Julian: The Board has taken up your letter of October 30 regarding the savings bond program, and we have also discussed it with the Presidents of the Federal Reserve Banks. For a variety of reasons the Reserve Bank Presidents think it would be undesirable for them to serve as co-chairmen or members of regional campaign committees. However, they want to help in every way they can and will be glad to assist in arranging programs. Some of them, in fact most of them, I think you can get as speakers or participants on panels and all of them will be available for advice and counsel. With regard to the luncheon and dinner meetings that you plan for top executives of firms with a thousand or more employees in 26 Federal Reserve cities, the Board is authorizing the Reserve Banks to pay for one such luncheon or dinner in each of the cities listed in Your letter. It is our thought that luncheons are Preferable to dinners and where desired and appropriate the facilities of the Reserve Banks could be utilized. This authorization is limited to the next several months and we will want to review the matter at a later stage to see how it is working out. With all good wishes, Sincerely yours, (Signed) Wm. McC. Martin, Jr. Wm. McC. Martin, Jr. The Honorable Julian B. Baird, Under Secretary of the Treasury, Washington 25, D. C. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 5 12/6/59 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 8, 1959 Mr. N. L. Armistead, Vice President, Federal Reserve Bank of Richmond, Richmond 13, Virginia. Dear Mr. Armistead: In accordance with the request contained in your letter of December 3, 1959, the Board approves the appointment of Robert Baker Thornton as an assistant examiner for the Federal Reserve Bank of Richmond, effective today. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary.
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