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Minutes for December 9, 1959. To: Members of the Board From: Office of the Secretary Attached is a copy of the minutes of the Board of Governors of the Federal Reserve System on the above date. It is not proposed to include a statement With respect to any of the entries in this set of minutes in the record of policy actions required to be maintained pursuant to section 10 of the Federal Reserve Act. Should you have any question with regard to the minutes, it will be appreciated if you will advise the Secretary's Office. Otherwise, please initial below. If you were present at the meeting, your initials will Indicate approval of the minutes. If you were not present, your initials will indicate only that you have seen the minutes. Chin. Martin Gov. Szymczak Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. King _ Minutes of the Board of Governors of the Federal Reserve System on Wednesday, December PRESENT: 9, 1959. The Board met in the Board Room at 10:00 a.m. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Martin, Chairman Balderston, Vice Chairman Szymczak Mills Robertson Shepardson King Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Discount rates. Sherman, Secretary Shay, Legislative Counsel Molony, Assistant to the Board Johnson, Director, Division of Personnel Administration Hackley, General Counsel Farrell, Director, Division of Bank Operations Solomon, Director, Division of Examinations Noyes, Adviser, Division of Research and Statistics Hexter, Assistant General Counsel Chase, Assistant General Counsel Kiley, Assistant Director, Division of Bank Operations Nelson, Assistant Director, Division of Examinations Goodman, Assistant Director, Division of Examinations Landry, Assistant to the Secretary Farrell, Legal Assistant Massey, Chief, Reserve Bank Operations Section, Division of Bank Operations The establishment without change by the Federal Reserve Bank of St. Louis on December 8, 1959, of the rates on discounts elld advances in its existing schedule was approved unanimously, with the understanding that appropriate advice would be sent to that Bank. Items circulated or distributed to the Board. The following iteth —8) which had been circulated or distributed to the members of the 12/9/59 -2- Board and copies of which are attached to these minutes under the respective item numbers indicated, were approved unanimously: Item No. Letter to The First National City Bank of New York, New York City, approving the establishment of a branch in Hong Kong. 1 Letter to the State Bank of Plainfield, Plainfield, New Jersey, granting an extension of time to accomplish membership in the Federal Reserve System 2 Letter to the Fidelity-Philadelphia Trust Company, 3 Philadelphia, Pennsylvania, approving the establishment Of a branch in Ridley Township and an investment in bank Premises. Letter to the Security State Bank, Algona, Iowa, granting Its request for permission to exercise fiduciary powers. 4 Letter to the Federal Deposit Insurance Corporation regarding the application of Citizens State Bank and trust Company, Kilgore, Texas, for continuation of deposit ±nsurance after withdrawal from membership in the Federal tieserve System. 5 Letter to the Federal Reserve Bank of Philadelphia 8.rding questions under Regulations D and Q in connection -th I A" "allocations" made under a "Deferred Compensation .f-stEreement" entered into between the Provident Tradesmens 16snk and Trust Company and certain of its officers. 6 Letter to the Federal Reserve Bank of Chicago regarding cla.vestment by Brenton Companies, Des Moines, Iowa, of s ownership of certain insurance agencies and the pero± certain functions by Brenton Companies for uanks of which it owns less than 25 per cent of the voting Shares. 7 Letter to the House Banking and Currency Committee, pre3ared pursuant to the understanding at the meeting on 1) scember 8, 1959, regarding House Concurrent Resolution 196. 8 12/9/59 -3Item No. Letter to Mr. Aksel Nielsen, Denver, Colorado, regarding the applicability of section 8 of the Clayton Act to his service as a director of a national bank and a director of a savings and loan association. 9 With respect to the foregoing Item No. 7, it was understood that a letter advising of this interpretation would be sent to the Presidents of all Federal Reserve Banks. Request from Chicago City Bank and Trust Company. Governor Robertson referred to a letter dated November 23, 1959, from the Chicago City Bank and Trust Company, Chicago, Illinois, requesting that the Board waive the requirement of six months' notice of withdrawal from me mbership in the Federal Reserve System. He noted that the Federal Reserve had requested this bank to increase its capital and that the Federal Deposit Insurance Corporation, to which the bank had applied or deposit insurance as a nonmember bank, was urging the same corrective action- Noting that he had been in consultation with the Federal Deposit Insurance Corporation on this matter, Governor Robertson suggested that liaiver of the six months' notice be deferred on the grounds that such delay might assist the Federal Deposit Insurance Corporation in accomplishing the corrective action indicated. Governor Robertson's suggestion was approved unanimously. Messrs. Shay, Hackley, -Incter, Chase, Nelson, Goodman, and D011eld Farrell withdrew from the meeting at this point. A 12/9/59 Reserve Bank budgets for 1960 (Item No. 10). There had been distributed copies of a memorandum from the Division of Bank Operations dated November 20, 1959, summarizing the significant features of the 1960 Reserve Bank budgets, along with a memorandum dated November 16, 1959, relating to major bank premises projects for Federal Reserve Banks, which was submitted this year for the first time with the budgets Of the respective Banks and branches. Submitted with the memorandum were analyses, prepared by the appropriate offices of the Board, concerning the budgets for those functions for which the scope of activities and the size of the budget are largely determined by policy decisions. In addition, digests of the budget proposals of each Bank and branch, supported by tabular data in considerable detail, had been prepared by the Division of Bank Operations and) while not distributed, were available on request. The memorandum reported that the total budgets, at $174.2 million, reflected an increase of $8.8 million, or 5.4 per cent over 1959 estimated expenses. Budgeted net operating expenses showed an increase of $7.9 over estimated operating expenses for 1959. At its meeting on July 8, 1959, the Board had named Governors 41derston Y Mills, and King as a budget committee to hold preliminary discussions with the Presidents of the Reserve Banks regarding the 1960 budgets. 12/9/59 -5Acting in his capacity as Chairman of the Board's budget com- mittee, Governor Balderston distributed a memorandum from the committee to the Board members. He stated that the committee recommended approval of the proposed 1960 budgets for the 12 Reserve Banks and that he thought it would also be desirable to discuss the bank premises projects at this meeting. Mr. Farrell observed that the proposed operating budgets of the Reserve Banks for 1960 raised little question. Although there were increases in most items as compared with 1959, these were not as great as had been true frequently in the past, and there were no unusual items in the budgets. Governor Mills commented that within the next year the Board might want to give thought to the policy followed by the Reserve Banks in adjusting their salary scales to the third quartile of community wage rates, which caused them to be a factor helping to push salaries upward in their localities. He suggested that such a policy seemed inconsistent With the position taken by the System on the inflationary effects of labor-management agreements. He added that the increase of more than 5° Per cent in total operating expenses of the Reserve Banks since 1951 was probably due in large measure to "keeping up with the Joneses" as fekr as salaries were concerned. A discussion followed with respect to how this subject might be take , ' 4 11P with the Reserve Bank Presidents, during which Chairman Martin 12/9/59 -6- proposed that the Board might meet with the Presidents more frequently during 1960. He suggested that more frequent meetings could be arranged through a tie-in with meetings of the Federal Open Market Committee. He went on to suggest that an attempt should be made to transform meetings Of' the the Conference of Presidents into merged meetings of the Board and Presidents to discuss issues of mutual concern. There was some evidence that the Conference of Presidents looked upon itself as a gr°uP distinct and separate from the Board, and perhaps this same sort Of attitude was evident on the part of the Board. Governor King expressed the view that in order to accomplish anYthing worth while in this direction the Reserve Banks must gear themselves to thinking in terms of operating as economically as possible consistent with their responsibilities. He noted that the System was 1(4 encumbered by the restrictions of a limited income, tending to Place a check on salary increases, and that a policy of liberal increases /4°111d not necessarily lead to high morale. In this connection, he r eferred to the Board's statutory responsibility in this area. Governor Balderston commented that he also was concerned by the gradual upward trend of expenses in the System. To his way of think. lng, however, there were only two feasible ways of running the System—either through extreme centralization of authority or extreme deceIit ralization. On balance, he favored the latter approach. In his ii4galent, the Board had not done as much as it might have in expressing 12/9/59 -7- appreciation of good performances by officers within the System, as contrasted with the enthusiasm shown by directors of the Reserve Banks. He indicated that the Board would do well to show its appreciation of efforts at the Reserve Banks to raise efficiency, and he then cited the desire of certain Reserve Banks to mechanize their operations more fully. He concluded by noting that greater efficiency might be induced in this way, whereas the Reserve Banks could never be driven to it by au thoritarian measures. A discussion ensued during which the Chairman indicated the desirability of increasing the salaries of qualified personnel and Governor King commented that he did not wish his earlier comments to be interpreted as a recommendation for greater centralization. He noted, however, that the basic responsibility for salary structures within the SYstem rested with the Board. Unanimous approval Was then given to letters to the respective Federal Reserve Banks accepting the proposed 1960 budgets as submitted, with the understanding that Messrs. Farrell and Johnson would prepare background information on salary scale developments for the Board's consideration, looking toward the possibility of discussion at a joint meet' ng of the Board and the Reserve Bank Presidents. copy of the letter sent to the Federal Reserve Bank of Boston Pursuant to this action is attached as Item No. 10. Other Federal Reserve Banks were in similar form. Letters sent to the -8- 12/.)/59 Messrs. Molony and Noyes withdrew from the meeting at this Point. The Chairman then called for discussion of the capital budgets Of' the Reserve Banks, and Governor Balderston recalled that with the Board's letter of May 6, 1959, the annual Federal Reserve Bank budget Procedure was expanded to include a request for the submission of a list of major bank premises projects contemplated or foreseeable during the next five-year period, with estimates of expenditures for each year. This list was to cover expenditures for land acquisition, building construction, and major alterations and improvements. He noted that the Reserve Banks had reported foreseeable expenditures for such projects tcptaling about $32 million during the next five-year period, of which ghly rou $19 million had already been approved by the Board, and that the remaini_ 116 43 million included $4.5 million for a new building in Nev Orleans, $3.8 million for a new site and building in Denver, $2.3 for an addition to the Oklahoma City building, and $1 million for parking, garage, and storage space on the Reliance Building site in Kansas City. He went on to say that the present Congressional authorization of $30 million for branch "building proper" costs had been used or allocated except for about $1.6 million, which was insufficient to permit construction of the new buildings under consideration t Ilew Orleans and Denver. In the circumstances, he suggested that Ce'ngressional authorization for further branch construction should be 12/9/59 -9- obtained before additional commitments were entered into. More spec, - fically, he would suggest to the Board that it ask Congress to authorize funds to cover branch projects already planned in some detail. He had not had an opportunity to consult with Governors Mills and King regarding this specific proposal; in the committee there had been discussion only of the proposal that Congress be asked for an additional y10 million authorization for branch "building proper" costs. The Chairman then said that he would try to arrange for discussion With the Chairmen of the Senate and House Banking and Currency Committees to obtain their advice on how best to handle this question, and that he w°uld report back to the Board. Mr. Farrell suggested that it might be well to consider the nature of the "building proper" concept, as applied to branch building projects. It had been developed in the light of the statutory $250,000 limitation on the cost of each branch building, which limitation was exclusive of the cost of vaults, permanent equipment, furnishings, and fixtures; and it had also been used in computing costs of branch buildings Within the total statutory limitation, now $30 million, Ellth°u0a the $250,000 authorization is not applicable while the overall l imttation is in effect. Removal by Congress of the $250,000 limitation for each branch building, along with an increase in, or lielli°//al of, the over-all $30 million limitation, would have the advantage Of mak. lng it unnecessary to use the "building proper" concept further. 12/9/59 -10- The Chairman then suggested that Mr. Farrell might prepare a memorandum on this matter. At this point all the members of the staff except Mr. Johnson 'withdrew and the Board went into executive session. Reserve Bank salaries. Following the meeting, Vice Chairman Balderston informed the Secretary that during the executive session the followint.. - actions were taken by the Board: 1. The Board approved the payment of salaries to the ; 1.residents of the Federal Reserve Banks for the calendar year 191at the rates set opposite their names in the following J. A. Erickson Alfred Hayes Karl R. Bopp W. D. Fulton Hugh Leach Malcolm Bryan Carl E. Allen Delos C. Johns Frederick L. Deming H. G. Leedy Watrous H. Irons Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas $35,000 6o,000 35,000 35,000 35,000 35,000 50,000 35,000 35,000 35,000 35,000 Secretary's Note: As indicated in the minutes for December 7, 1959, on that day the Board approved payment of salary during the calendar year 1960 to Mr. Mangels, President of the Federal Reserve Bank of San Francisco, at the rate of $4o,o00 a year. 2. The Board approved the payment of salaries to the First :,re Presidents of the Federal Reserve Banks for the calendar Year 1960 at the rates set opposite their names in the following list: 12/9/59 -11Earle O. Latham William F. Treiber Robert N. Hilkert Donald S. Thompson Edward A. Wayne Harold T. Patterson C. J. Scanlon Darryl R. Francis A. W. Mills Henry O. Koppang Harry A. Shuford Eliot J. Swan Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco $25,000 35,000 25,000 25,000 27,000 23,000 22,500 22,000 25,000 25,000 25,000* 25,000 * If so fixed by the directors of the Federal Reserve Bank of Dallas. 3. The Board approved a proposal by the directors of the Federal Reserve Bank of Boston, as transmitted in Chairman SPrague's letter of October 23, 1959, that the directors be authorized to revise the arrangement between the Federal Reserve Bank of Boston and J. A. Erickson with respect to supplementing his retirement allowance so as to provide the same proportionate benefits under the same conditions as those that would be provided in an agreement with W. Braddock Hickman authorized by the Board at its meeting on November 13, 1959,*in the event Mr. Hickman was employed as an officer of the Federal Reserve Bank of Cleveland. 4- The Board approved the payment of salaries to officers 2f: the Federal Reserve Banks, other than Presidents or First Vice Presidents, during the calendar year 1960 or for fractions thereof, as set forth in letters to be sent to the respective Ziplizof which are attached to these minutes as Items Banks,os In connection with the action on salaries for officers of the Federal Reserve Bank of Minneapolis, the Secretary was informed that the 13°ard had indicated that it would approve payment of salaries at the rate per year for Messrs. J. P. Olin and W. A. O'Brien, as Assistant Counsel and Assistant Cashier, respectively, if they were appointed fficers of the Federal Reserve Bank of Minneapolis. 12/9/59 -12Secretary's Note: Advice of the appointments of Messrs. Olin and O'Brien was received in a letter from the Minneapolis Bank dated December 11, 1959, and pursuant to the foregoing action the letter approving payment of salaries to officers of that Bank was mailed under date of December 15, 1959. The meeting then adjourned. Secretary's Note: Pursuant to the recommendations contained in memoranda from appropriate individuals concerned, Governor Shepardson today approved on behalf of the Board the following actions affecting the Board's staff: Salary increase ice M. Boyd, Secretary, Office of the Controller, from 2 0, 11, 1^ to s5E per annum, effective December 13, 1959. 4,940 ansfer 4.6inn S. Gormus, from the position of Clerk-Stenographer in the gr, ! 1 1°n of Personnel Administration, to the position of Clerk-Stenohei:Per.in the Division of Research and Statistics, with no change in De uaslc annual salary at the rate of $3,850 per annum, effective cember 13, 1959. Secretary BOARD OF GOVERNORS OF THE Item No. 1 12/9/59 FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDREE115 OFFICIAL CORRESPONDENOK TO THE !BOARD December 9, 1959 The First National City Bank of New York, 55 Wall Street, New York 15, New York. Gentlemen: The Board of Governors of the Federal Reserve System authorizes The First National City Bank of New York, New York, New York, pursuant to the provisions of Section 25 of the Federal Reserve Act, to establish a branch in the Tsim Sha Tsui District of the Kowloon Section of the Colony of Hong Kong, and to operate and maintain such branch subject to the provisions of such Section. The location of the branch may not be changed, after establishment, without the prior approval of the Board of Governor • Unless the branch is actually established and opened 11-:1:41siness on or before December 1, 1960, (11] rights granted shall be deemed to have been abandoned and the authority hereby granted will automatically terminate on that date. Please advise the Board of Governors, in writing, through the Federal Reserve Bank of New York, when the branch opened for business, furnishing information as to the exact _Location of the branch. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS or THE OOP FEDERAL RESERVE SYSTEM Item No, 2 12/9/59 WASHINGTON 25. D. C. ADDRESS OYICIAI. CORRESPONDENCE TO THE BOARD December 9, 1959 Organization Committee, State Bank of Plainfield, Plainfield, New Jersey. Gentlemen: In accordance with a request submitted through the Federal Reserve Bank of New York, the Board of Governors extends to June 28, 1960, the time within which State Bank of Plainfield, Plainfield, New Jersey, may accomplish admission to membership in the Federal Reserve System, as outlined in the Board's letter of June 26, 1959* Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS 4004044 0 co Gov 44 44, OF THE t tr FEDERAL RESERVE SYSTEM Item No. 3 12/9/59 WASHINGTON 25, O. C. ADDRESS OFFICIAL. CORRESPONDENCE DO; 44L TO THE SOAR° Ks% December 9, 1959 Board of Directors, Fidelity-Philadelphia Trust Company, Philadelphia, Pennsylvania, G entlemen: Pursuant to your request submitted through the Reserve Bank of Philadelphia, the Bbard of Governors :13Proves (1) the establishment of a branch near the southwest n°!'ner of Fairview Road and MacDade Boulevard, Ridley Township, :..!aware County, Pennsylvania, and (2) an additional investment Wider the provisions of Section 24A of the Federal Reserve Acts ,,,!1°t to exceed $70,000 for leasehold improvements in connection ' 17,1r the establishment of the branch at the above location by T1,481itY-Philadelphia Trust Company: Philadelphia, Pennsylvania. ,cts approval is given provided the branch is established within ear from the date of this letter and formal approval of staj u authorities is effective at the time the branch is established. Federal Very truly yours: , (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS **it* ' 44 OF THE FEDERAL RESERVE SYSTEM Item No. 4 12/9/59 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD December 9, 1959. Board of Directors, Security State Bank, agona, Iowa. Gentlemen: This refers to your request for permission, under applicable provisions of your condition of membership. numbered 1, to exercise fiduciary powers. Following consideration of the information submitted, the Board of Governors of the Federal Reserve System grants permission to Security State Bank to exercise the fiduciary powers now or hereafter authorized bY its articles of incorporation and the laws of the State of Iowa. Very truly yours, (Signed) Kenneth A- Kenyon Kenneth A. Kenyon, Assistant Secretary. t BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 5 12/9/59 WASHINGTON 25, 0. C. ADDRESS OFFICIAL CORRESPONOICNCIC TO INC BOARD December 9, 1959 The Honorable Jesse P. Wolcott, Chairman, Federal Deposit Insurance Corporation, Washington 25, D. C. Dear Mr. Wolcott: Reference is made to your letter of November 24, 1959, With respect to the application of Citizens State Bank and Trust Company, Kilgore, Texas, for continuance of deposit insurance after withdrawal from membership in the Federal Reserve System. No corrective programs have been urged upon the bank agreed to by it which the Board of Governors believes should aliZTrated as conditions to the continuance of deposit Z Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. r7o-ftiorjo s( BOARD OF GOVERNORS 4' oil golf *4 OF THE FEDERAL RESERVE SYSTEM 4 a 44 WASHINGTON 25, D. C. Item No. 6 12/9/59 ADOSIESEI OFFICIAL COFIREEIPO, C, t37 : , ''1174 ' 444*** TO THE BOARD December 9, 1959 Mr. Joseph R. Campbell, Vice President: Department of Bank Examination, Federal Reserve Bank of Philadelphia, Philadelphia 1 : Pennsylvania. De ar Mr. Campbell: This is in reply to your letter of October 26, 1959, regarding the question whether "allocations" made under a "Deferred me-iiuneation Agreement" entered into between the Provident Tradesinnas,Bank and Trust Company and certain of its officer would result s and'P°3ite against which reserves are required under Regulation D which the payment of an additional amount of 4 per cent based 'Q upon these "allocations" would constitute interest in excess of the maximum permissible under Regulation Q. It is understood that, under the terms of the Deferred Agreement the bank agrees to "allocate" 3 per cent, ov or Such '° percentage as it the greater determine from time to time, may fut average annual basic salary of each of the officers involved for ofpl:Ire contingent payment s to each such officer; that when the : 1. 41,-cer dies) is disabled, or reaches his retirement date as provided tihe separate Pension Plan of the bank, the bank agrees to pay out nauterounts so allocated to each such officer or his estate or desigb eneficiary: in 120 equal monthly payments or by such other meth "all°c1 °f Payment as is provided by the agreement; and that when this t ocatedu fund is finally determined at death, disability, or indica7p a. ,.r te . ti -rement date, the bank further agrees to add to this fund an th : 1 lonal amount computed at the compound rate of it per cent "for addiPjriod during which the sums were allocated," except that this bank amount is not paid if the officer leaves the employ of the Ali for or any at aP_ayments reason other than death, disability, or actual retirement. to an officer are contingent upon the officer refraining from performing any services for any other bank or financial inAltu mesIvItl with 1:4—ror iciIte Board of Directors determines to be competitive bank. Also, any attempt by an officer to assign any 4r. Joseph R. Campbell -2- ._nterest he may have in the agreement would be considered a material ?reach thereof and relieve the bank of any further obligations thereunder. In consideration of the above, the officers agree to ' lemain in the employ of the bank for at least three years: unless death or disability occurs first. On the basis of this understanding of the facts, it appears that the by the "allocations" made by the bank are not subject to control officers involved and give rise only to future contingent liabilities on the part of the bank that are insufficient to create a deposit relationship between the bank and its officers, Accordingly, it is the view of the Board that the "allocations', Ltuscribed do not constitute deposit liabilities against which reserves are required under Regulation D; and that: consequently, the nZtional payment of 4 per cent based upon these "allocations" does , L constitute a payment of interest on deposits under the provisions 04 Regulation Q. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 7 12/9/59 WASHINGTON 25, 0. C. ADORERS OFFICIAL COURE5PONOENC7 TO THE BOARD December 9, 1959 Mr. C. P. Van Zante, A ssistant Vice President, Federal Reserve Bank of Chicago, Chicago 90, Illinois. Dear Mr, Van Zante: This refers to your letter of August 10, 1959, enclosing a c mrlY of a letter to Mr. Diercks, dated August 3, 1959, from Harold Brenton, President of Brenton Companies, Des Moines, Iowa, relle, a registered bank holding company. Mr. Brenton/s letter of ates to (1) the divestment by Brenton Companies of its ownership ce certain insurance agencies and (2) whether the performance of oXsin functions by Brenton Companies for four banks of which it sees t.leas than 25 per cent of the voting shares is in violation of 1°n 4(a) of the Bank Holding Ccmpau Act. With respect to the insurance business, it was stated that steps We being taken to terminate ownership of the insurance agen,7! before the end of August 1959. It will be appreciated if you %.uuld ascertain the status of this matter. According to Mr. Brenton/a letter, Brenton Companies is :/eeii engag it r ed n "managing" Managing" four nonsubsidiary banks, for which services en "management fees". Specifically, Brenton Companies 01-ge8 in the following activities for the four nonsubsidiary banks: or j etablishment and supervision of loaning policies; (2) direction traine Purchase and sale of investment securities; (3) selection and cpsrl,!'lng of officer personnel; (4) establishment and enforcement of n 1 and d (5) general supervision over all policies and Practices.Policies. sectThe question raised is whether these activities are prohibit?cl bY rmltsa of epuss bank hclon 4(a)(2) of the Bank Holding Company Act, whichpl ding company to engage in only three categories (1) b s: aervi,„ ngl (2) managing or controlling banks; and (3) furnishing 8 to or performing services for any bank of which the holding eciTill" r--.11Y owns or controls 25 per cent or more of the voting shares. BOARD 14re C. P. Van Zante OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM -.2.- the.Clearly, , the activities of Brenton Companies with respect to ou nonsubsidiary banks do not constitute "banking". With respect Lio the business of "managing or controlling" banks, it is the Board's : 1-elt that such business, within the purview of section 4(a)(2), is 1188entiall1 the exercise of a broad governing influence of the sort or silaUY exercised by bank stockholders, as distinguished from direct ti active participation in the establishment or carrying out of par4, Policies or operations. The latter kinds of activities fall i"nin the third category of businesses in which a bank holding company Permitted to engage. In the Board's view, the activities enumerated above fall in substantial part within that third category. Section 4(a)(2), like all other sections of the Holding Company &et, must be interpreted in the light of all of its provisions, as well as i" - the light of other sections of the Act. The expression "managing 6. • banks", if it could be taken by itself, might appear to include of the sort enumerated in Mr. Brenton's letter. However, such „ ch an interpretation of those words would virtually nullify the last zrtion of section 4(a)(2), which permits a holding company to furnish t; r:Y,Icee to or perform services for "any bank of which it owns or con" 8 25 per centum or more of the voting shares". • Since Congress explicitly authorized the performance of services for °bidbanks that are at least 25 per cent owned by a holding company, it tor °uslY intended that the holding company should not perform services How' Janke in which it owns less than 25 per cent of the voting shares ever, if the second category - "managing or controlling banks" vere all„,interpreted to permit the holding company to perform services for th-4 viank, including a bank in which it held less than 25 per cent of 1,41_ sT,ock (or no stock whatsoever), the last clause of section 4(a)(2) uld be meaningless. It is principally for this reason - that is, to give effective nle Art4 : nrn -4-ng to the final clause of section 4(a)(2) - that the Board interprc* e-ZZing or controlling banks" in that provision as referring to the dire„taa of a stockholder's management or control of banks, rather than , and active participation in their operations. To repeat, such eot ' (of,,!e Participation in operations falls within the third category segrishing services to or performing services for any bank") and conholdntlY may be engaged in only with respect to banks in which the ouir;;;kcompany "owns or controls 25 per centum or more of the voting the Accordingly, it is the Board's conclusion that, in performing "t1147nces enumerated in Mr. Brenton's letter, Brenton Companies is ''enlng services to or performing services for" the four banks BOARD OF DOVERNDRS OF THE FEDERAL RESERVE SYSTEM C, P. Van Zante referred to. Under the Act such furnishing or performing of services is permissible only if the holding company owns or controls 25 per cent of the voting shares of each bank receiving such services, and, since Brenton Companies owns less than 25 per cant of the voting Shares of these banks, it follows that these activities are prohibited by section *tile this conclusion is required, in the Board's opinion, by .01 language of the statute, it may be noted further that any other conclusion would make it possible for a bank holding company or any other corporation, through arrangements for the "managing" of banks in the manner here involved, to acquire effective control.of banks vithout acquiring bank stocks and thus to evade the underlying obiectives of section 3 of the Act. In view of all the circumstances, the Board, pursuant to ation 4(a) of the Act, grants an extension to May 9, 1960 of the ims within which Brenton Companies must bring its activities in this connection into conformity with section 4(a)(2). r Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. 4 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON Item No. 8 12/9/59 OFFICE OF THE CHAIRMAN December 9, 1959 The Honorable Brent Spence, House of Representatives, Washington 25, D. C. Dear Mr. Spence: This is in response to your letter of August 3, requesting a report from the Board on H. Con. Res. 196. 1959 As you may recall, I testified concerning proposals similar to n this Resolution in appearances before the Ways and Means Z?mmittee and the Joint Economic Committee earlier this year. On 'nose occasions, my position was that favorable action on the pro.3 8als by the Congress would not be in the interests of the maximum 12, l asectiveness of monetary policy and would not be of materia istance in the management of the public debt. r The fourth introductory clause of H. Con. Res. 196 states: ereas the Federal Reserve System has consistently followed, and stated its intention to continue to follow, a policy of creating necessary increases in the money.supply by lowering reserve requirenecesnehts, rather than by purchases of Government securities, and by sary than rather ies decreases through sales of Government securit aising reserve requirements;". is not, in our judgment, an accurate representation either ther of Federal Reserve actions in the past or of any intentions 1 have expressed with respect to the future. The Federal Reserve g isi rd, although lowering reserve requirements in the recessions of 11(43-54 and 1957-58 from their earlier abnormally high levels, has 11sed this instrument exclusively in providing reserves to member while reduct.7'43, In the past eight years, (since November 1951) of reserves, billion $4.3 d s 0ne in reserve requirements have release ' increased have ies securit ent q;13;tem holdings of United States Governm ):-' 4 billion. Furthermore, the System has never indicated that only reserve future as a requirement reductions would be utilized in the supply money for basis grn!,of providing reserves to serve as a s reserve absorb to ies . System sales of Government securit ha7e been the in ons variati ry tempora 8 : made principally to adjust to operation ,PlY of, or need for, reserves--a sensitive money-market ) , fol suited. well not are ''which reserve requirement increases BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM The Honorable Brent Spence -2. The fifth introductory clause of the Resolution states: Whereas this method makes Government securities unattractive to investors by bringing about undue downward fluctuations in the Prices of Government securities, adds to the interest burden on the taxpayer, and exposes the Treasury to almost constant refundOperations;". This statement is inaccurate. In the first place, changes ?xi reserve requirements since 1951, all of which have been decreases, ne av tended to support rather than reduce prices of Government seculities. Secondly, whether reserves are supplied through reductions 411 reserve requirements or through Federal Reserve purchases of secuties, makes little difference in the ultimate impact on the supply ?-1 funds available to the money and capital markets and therefore on levels of interest rates. This impact is determined by combined tal of Federal Reserve holdings of securities and commercial bank ' 13ans and investments, not by commercial bank credit alone, and IvInder either method the ultimate change in this total is the same. linally, there is no reason to think that the frequency of refunding Iperations faced by the Treasury is either increased or decreased 151Y the choice of monetary policy instruments. It is our view that the Federal Reserve System does preeisel 4, Y what is stated by the language of the Resolution specifying Fhat the Federal Reserve System, while pursuing its primary mis!ion of administering a sound monetary policy, should, to the maxiTuM extent consistent therewith, utilize such means as will assist ILtn t., the economical and efficient management of the public debt;". elusion of this language might give the impression that the Federal Reserve does not follow that practice and therefore would be Mi sleading. The provision of the Resolution "that purchases of Govo 4 securities rather than further lowering of reserve require. r tnts should be utilized to the greatest extent possible for thtaining needed monetary expansion" would purport to restrict a,e flexibility of the Federal Reserve in its choice of the most ProPriate monetary policy instruments for meeting the future ! 84 1c41 of the economy. Some might look upon the clause as superg the basic statutory authority in the Federal Reserve Act to ?(4Y reserve requirements. If uncertainty as to the powers of the futeral Reserve in using its monetary instruments to deal with or urs contingencies stemmed from such a provision, the functioning °I.Ir financial system might be hampered. 4 The final clause of the Resolution "that the Federal Reeerv,„ " SYstem should promptly and fully explore methods whereby use RESERVE SYSTEM BOARD OF GOVERNORS OF THE FEDERAL The Honorable Brent Spence Of the power to set reserve requirements may become a more useful and effective anti-inflationary tool“ is unnecessary in view of Your Committee's Report of last May on the bill S. 1120, requestrig a similar study. We are now making the study requested in that ort and its completion and submission to you is expected by earlY next year. is It is the view of the Board that the proposed Resolution neither necessary nor desirable. Very truly yours, • 1 attete)(121, 14M. McC. Martin, Jr. BOARD OF GOVERNORS OF THE Item No. 9 FEDERAL RESERVE SYSTEM 12/9/59 WASHINGTON OFFICE OF THE CHAIRMAN December 9) 1959. Mr. Aksel Nielsen, President, The Title Guaranty Company) 1711 California Street, Denver 2, Colorado. Dear Aksel: On November 24 you inquired by telephone as to whether "u might serve as a director of a national bank in Denver while serving as a director of Empire Savings and Loan Association in Denver, in view of the provisions of section 8 of the Clayton Act and the Board's Regulation L. Information received by telephone from the Federal Reserve Bank of Kansas City indicates that the principal function ?f the Association is receiving savings and making loana secured ?Y real estate, the savings accounts representing a share interest ln the Association on which dividends are paid. In the circumstances, it appears that the Association is essentially the same as a building and loan association of the !rdinary type, not authorized to receive deposits, and that there'ere it is not a bank within the meaning of section 8 of the layton Act. Consequently, that Act would not be applicable to our service as a director of the national bank and of Empire "inga and Loan Association. K Sincerely yours, dP4tb Wm. McC. Martin, Jr. e BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 10 12/9/59 WASHINGTON 25, D. C. ADORERS orricum. 00*PlICEPONOICHOC TO THE 1110ARO December 9, 1959. Mr. Joseph A. Erickson, President, Federal Reserve Bank of Boston, Boston 6, Massachusetts. N)ar Mr. Erickson: The Board of Governors has reviewed and accepts the 1960 budget of the Federal Reserve Bank of Boston which was submitted with your letter of September 24, 1959. Separate advice is being given with respect to the BoarA --'s action concerning the 1960 salaries proposed for the various officers of your Bank. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM .„ WASHINGTON 25, D. C. * Item No. 11 12/9/59 ADDREBLI OFFICIAL CORRESPONDENCE TO THE 1110ARD December 9, 1959 CONFIDENTIAL (FR Mr. J. A. Erickson, President, Federal Reserve Bank of Boston, Boston 6, Massachusetts. Dear Mr. Erickson: The Board of Governors approves the payment of salaries to the following officers of the Federal Reserve Bank of Boston for the 1P;71od January 1, 1960 through December 31) 1960) at the rates indicated, i nich are the rates fixed by your Board of Directors as reported in your Aetter of October 23, 1959: Name Title Annual Salary D. Harry Angney Ansgar R. Berge George H. Ellis , Beniamin F. Groot 'John E. Lowe !Jana D. Sawyer °Scar A. Schlaikjer Charles E. Turner David L. Strong Parker B. Willis Wallace Dickson 1Vi1liam R. King Loring C. Nye Richard A. Walker G. Gordon Watts Louis A. Zehner Weston L. Bonney Charles H. Brady bonald R. Gilmore RiPleY M. Keating Ri chard H. Radford Laurence H. Stone Jarvis M. Thayer, Jr. Vice President Vice President Vice President and Director of Research Vice President Cashier Vice President Vice President and General Counsel Vice President General Auditor Economic Adviser Assistant Vice President Assistant Vice President Assistant Vice President Assistant Cashier Assistant Vice President Assistant Vice President Assistant Cashier Assistant Cashier Regional Economist Assistant Cashier Assistant Cashier Secretary and Assistant Counsel Assistant Cashier $19,000 17)000 18,500 16,000 16,000 16,500 21,000 15,000 15,000 14,000 15,500 13,000 114,000 10,000 13)500 1/4,500 9,000 10,000 12,000 11,500 10,500 11,500 12,500 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM lire J. A. Erickson — 2 — It is noted that Mr. David L. Strong will reach retirement age 1960 and, accordingly, payment of salary to him is approved ' 11147 to the date of his retirement. „ during Your Chairman will be advised in a separate letter with respect to the salaries of the President and First Vice President. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. t *t BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 12 12/9/59 ADDRESS OFFICIAL CORRESPONDENCE TO THE SOAR° December 10, 1959 CONFIDENTIAL (FR) Alfred Hayes, President, rederal Reserve Bank of New York, New York 45, New York. Dear Mr. Hayes: The Board of Governors aporeves the payment of salaries to the foi • ,-mling officers of the Federal Reserve Bank of New York and its filLlfalo Branch for the period January 1, 1960 through December 31, 1960, 7q, the rates indicated, which, with the exception of Vice President Rouse, :r oe the rates fixed by your Board of Directors as reported in your letter NoveMber 13, 1959. It will be noted that the salary of Mr. Rouse has u,9en approved at the current rate of 32,500 per annum, if so fixed by Your Board. Name Harold A. 2,iiby C harles A. Cow,be, ILarcus A. Harris Herbert H. Kinball :110bert V. Rooea Hobert G. Rouse 4a1ter H. Rozell, Jr. Horace L. Todd C. Sanford Tiebout Reanald B. Wiltse John J. Clarke Howard D. Crosse Pelix T. Davis 11°rman P. Davis George Garvy clward G. Peter P. Guy Lang John J. Larkin 411gUe A. MacInnes, Jr. Title Vice President Viec President Vice President Vice President Vice President Vice President Vice President Vice President Vice President and General Counsel Vice President Assietant General Counsel Assistant Vice President Assistant Vice President Assistant Vice President Adviser Assistant General Counsel Adviser Assietant Vice President Assistant Vice President Annual Salary 30,000 24,000 32,500 29,000 32,500 23,000 23,000 31,500 25,000 24,000 23,000 22,250 20,000 17,250 20,000 19,000 20,500 20,500 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM f kr. Alfred Hayes Mame Spencer S. Marsh, Jr. Lorence E. Quackenbush F rederick L. Smedley Thomas O. Waage Donald J. Cameron William H. Braun, Jr. Harding Cowan Tilford C. Gaines Clifton R. Gordon William A. Heinl Alan R. Holmes John P. Jensen Robert G. Link Carl H. Madden William E. Marple H erbert A. Muether Donald C. Niles tirthur H. Noa William F. Palmer l''ranklin E. Peterson Fred L Piderit, Jr. John P. Pierce Everett B. Post Charles R. Pricher John P. Ringen :Thomas J. Roche 4alter S. Rushmore Prank W. Schiff Thomas C. Sloane Xenneth E. Small . C eorge C. , Smith nobert W. Stone -2- Title Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President General Auditor Assistant Counsel and Secretary Assistant Counsel Manager Assistant Counsel Manager Manager Assistant General Auditor Manager Manager and Assistant Secretary Manager /tanager Manager Manager Manalier Manager Manager Chief Examiner Manager Manager Manager Manager Manager Llanager Astistant Counsel Manager Manager Manager Annual Salary $18,750 18,500 17,250 19,250 20,000 16,000 18,000 17,000 18,000 14,750 14,500 16,500 14,500 14,250 16,750 16,500 17,000 14,500 14,250 15,750 17,500 31,,,500 14,000 14,500 14,500 16,000 14,500 15,030 14,000 15,000 17,000 14,500 Buffalo Branch Insley B. Smith Rarold M. Wessel George J. D611 (,1,,Eirald H. Greene Monroe Myers Vice President Assistant Vice President Cashier Assistant Cashier Assistant Cashier 24,500 17,000 15,000 13,000 12,750 BOARD or OOVERNORB OF THE FEDERAL RESERVE SYSTEM Mr. Alfred Hayes — 3— It is noted that Messrs. Wilts°, Cowan, Heinl, and Gordon will react_ n retirement age during 1960 and, accordingly, payment of salary to then' is approved only to the respective dates of their retirement. resAect Chairman Biermirth has been advised in a separate letter with to the salaries of the President and First Vice President. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. 42-0.3 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS Item No. 13 12/9/59 orriciAL CORRCOPOROCHCZ TO THE BOARD December 9, 1959 C°NPIDENTIAL (FR 1! 1 r. Karl R. Bopp, President, ..1;!deral Reserve Bank of Philadelphia, " iladelphia 1, Pennsylvania. Dear Ilre Bopp: The Board of Governors approves the payment of salaries to the ---ng officers of the Federal Reserve Bank of Philadelphia for the Period January 13 1960 through December 31, 1960, at the rates indicated, which are the rates fixed by your Board of Directors as reported in your uter of October 1) 1959: Name Joseph R. Campbell 17allace M. Catanach navid P. Eastburn Poorman Jaraes V. Vergari /tichard G. Magus titan B. Alderfer C,laY Ander:3on utIgh Barrie .„,Johrl R. Bunting .1.71rithan G. n•ish • r.00dwin Irl,eerman B. ''' c)rge J. Haffner Lavin L.14QiarrY 146 Roeder .rd A. Aff .`4() Plel M. Case G. Penth,r “`t,c'Y 4"..rednetherint;ton A. 1.1urray Title Vice President Vice President Vice President Vice President Vice President and Cashier Vice President and Secretary Economic Adviser Economic Adviser Assistant Vice President Business Economist Assistant Vice President Vice President, General Counsel, and Assistant Secretary General Auditor Assistant Vice President and Assistant Secretary Assistant Vice President Assistant Vice President Chief Examiner Assistant Vice President Assistant Cashier Director of Plant Annual Salary $16,000 16,000 17,000 18,000 21,000 16,000 14,000 14,000 15,000 13,000 14,000 15,000 13,500 14,000 15,000 13,000 13,000 13,000 12,000 13,000 BOARD OF OOVE ORS OF THE FEDERAL RESERVE SYSTEM Mr, Karl R. Bopp Name Ralph E. Haas William A. James, Jr. Warren R. Moll Henry J. Nelson Russell P. Sudders Annual Salary Title Assistant Personnel Assistant Assistant Assistant Cashier Officer Cashier Cashior Cashier $12,000 11,000 10,000 12,000 11,000 , Your Chairman will be advised in a separate letter with respect tc) tne salaries of the President and the First Vice President. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS 4014** 44 4, 44 41% 44 OF THE FEDERAL RESERVE SYSTEM Item No. 14 12/9/59 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE SOAR° December 9, 1959 22i12.22111AL-211 Mr. W. D. Fulton, President, Federal Reserve Bank of Cleveland, Cleveland 1, Ohio. Dear Mr. Fulton: theThe Board of Gov3rnors approves the payment of salaries to following officers of the Federal Reserve Bank of Cleveland and tte Branches for the period January 1, 1960 through December 31, 1960, the rates indicated, which are the rates fixed by your Board of 'lrectors as.reported in your letters of November 12, 1959: Annual Name D.t. Allen R. R. Clouse G. H. &ado E. A. Fink Clyde L. M. Harrell Hostetler Diartin Morrison P. C. Stetzeiberger 9' F. Ehninger 4. T. P. B. Cutler F'0, Didham Kiel J. M. Miller John E. Orin George T. Quast Paul 0. J.Breidenbach O. E. Bolthouse Crawford Anne J. E. P. Erste Prieek Robert G. Hoover John J. H. B. Hoy H. R. Flinkerc Renz Title Vice President Vice President and Secretary Cashier Vice President Vice President Vice President Vice President Vice President General Auditor Special Economist Assistant Vice President Senior Economist - Office Manager Assistant Vice President Assistant Vice President Chief Examiner Counsel Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Assistant Secretary Assistant Chief Examiner 19,000 19,500 17,000 16,000 17,000 20,000 19,500 20,000 18,500 13,000 13,000 12,500 16,000 12,000 13,000 12,500 12,500 11,000 9,500 11,500 10,000 11,500 10,000 11,500 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Mr. W. D. Fulton Name -2 ONO Annual Salary Title Cincinnati Branch R. G. Johnson P. J. Geers ,John Biermann, Jr. G. IN'. Hurst W. H. MacDonald Vice President Cashier Assistant Cashier Assistant Cashier Assistant Cashier $19,500 15,000 12,000 11,000 11,000 Pittsburgh Branch J•11. Kossin A. G. Foster Paul H. Dorn Charles E. Houpt J. A. Schmidt R. J. Steinbrink Vice President Cashier Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier 22,000 14,500 11,000 12,000 12,500 12,500 It is noted that Messrs. Renz, Foster, and Ehninger will reach retircment age during 1960 and, accordingly, payment of salary to them is approved only to the respective dates of their retirements. Your Chairman will be advised in a separate letter with respect t0 the salaries of the President and First Vice President. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS e i t1 0;11;;;1, OF THE 4 .t. 3 Item No. 15 12/9/59 FEDERAL RESERVE SYSTEM 4 4. * WASHINGTON 25, D. C. 4 4 ADDRESS arriciAL CORRESPONDENCE TCI THE BOARD 0 December 9, 1959 CONPIDENTIAL (FR) Mr. Alonzo G. Decker, Jr., Chairman of the Board, Federal Reserve Bank of Richmond, Richmond 13, Virginia. 1)ear Mr. Decker: The Board of Governors approves the payment of salaries to the following officers of the Federal Reserve Bank of Richmond and its Bran tL ohes for the period January 1, 1960 through December 31, 1960, at rates indicated, which are the rates fixed by your Board of '-'rectors as reported in your letter of November 12, 1959: Name N. L. J. D. Armistead Daane A. N. U. S. Heflin Martin 'Is 11. Nowlan J. M. Slay G. B. Snead F. Mac Donald J e L. Nosker C. W. J. G. Williams J. G. Deitrick W. S. Dickerson) Jr. Farmer E. Ford J. C. 11'P. Horigan G. W. Lumpkin 1/. E. McKinney, Jr. Pregeant, 1,!;* E. B. Sanders, Jr. Deavers Harrison, III Title Vice President Vice President Vice President and General Counsel Vice President Vice President and Cashier Vice President General Auditor Assistant Vice President Assistant Vice President Economic Adviser Assistant Vice President Assistant Vice President Secretary and Assistant Counsel Assistant Vice President Chief Examiner Senior Economist Assistant Vice President Assistant General Counsel Assistant Vice President Assistant Cashier Assistant Cashier Annual Salary $21,000 19,000 22,000 18,500 18,500 18,500 14,500 16,000 15,500 14,000 12,500 13,000 11,000 12,000 12,500 11,500 13,500 12,000 11,000 10,500 10,000 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Mr. Alonzo G. Decker, Jr. Name E. B. Coleman S. P. J. BO Fishburne Friend J. F. Viverette W. B. Wakeham —2 Annual Salary Title Assistant Assistant Assistant Assistant Assistant Cashier Cashier Cashier Cashier Cashier $10,500 10,000 10,500 10,000 10,500 Baltimore Branch D. F. A. A. Hagner B. F. Stewart, Jr. Armstrong E. R. A. C. Jones, Jr. Wienert Vice President Cashier Assistant Cashier Assistant Cashier Assistant Cashier 19,000 15,000 10,000 10,000 11,000 Charlotte Branch • A. R. C. C. Storrs Ligon Fentress Krueger Jr. Mandy Vice President Cashier Assistant Cashier Assistant Cashier Assistant Cashier 20,000 14,500 10,500 9,000 10,500 It is noted that Mr. E. B. Coleman will reach retirement age duri„ to r:Lg 1960 and, accordingly, payment of salary to him is approved only the date of his retirement. You will be advised in a separate letter with respect to the salar . of les the President and First Vice President. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS 4.411,tht, 44%14 OF THE 620v4 FEDERAL RESERVE SYSTEM Item No. 16 12/9/59 WASHINGTON 25. D. C. 4 4 CORRESPONDENCE ADDRESS OffICIAL TO THE BOARD a r. 4''" RIS1 December 9, 1959 CONFIDENTIAL (FR 14r. Malcolm Bryan, President, Federal Reserve Bank of Atlanta, Atlanta 3, Georgia. Dear Mr. Bryan: salaries to the The Board of Governors approves the payment of Atlanta and its Branches f°11°wing officers of the Federal Reserve Bank of for the period January 1, 1960 through DeceMber 31, 1960, at the rates icated, which are the rates fixed by your Board of Directors as rePorted in your letter of SepteMber 14: 1959: Name John L. Liles, Jr. J. E. Denmark Earle L. Rauber J. E. L. B. lIcCorvey Raisty S. P. Schuessler Dewitt Adams Brown R. Rawlings C harles T. Taylor George w. Sheffer Dowdell Brown, Jr. EdtarM. Vallette Theodore Walter C. Mason Ford. 'red I. Brock Martin Jaries B. Forbes I. H. 1:artin J. T. Harris l Title Vice President and Cashier Vice President Vice President and Director of Research Vice President Vice President Vice President General Auditor Assistant Vice President Assistant Vice President Chief Examiner Assistant Vice President Director of Personnel Assistant Vice President Assistant Vice President Assistant Cashier Assistant Vice President Assistant General Auditor Assistant Vice President Assistant Cashier and Manager Annual Salary $17,500 17,000 16,000 16,000 16,000 16,000 13,500 13,500 13,500 13,000 12,000 11,000 11,000 12,000 10,600 11,000 10,000 10,500 10,000 FEDERAL RESERVE SYSTEM BOARD OF GOVERNORS OF THE Mr, Malcolm Bryan Name Title Annual Salary Birmingham Branch H. C. Frazer B. C. Rainey William A. Wailer, Jr* Melvin McIlwain Vice President Assistant Vice President Cashier Assistant Cashier $16,000 13,500 10,500 9,000 Jacksonville Branch A T. .1* Lanford T, C. Clark 1 W. Snyder vestus Crow Vice President Assistant Vice President Cashier Assistant Cashier 17,000 12,500 11,500 10,500 Nashville Branch R. E. Moody, Jr. W. H. Sewell L. W. Starr Stuart H. Magee Vice President Assistant Vice President Cashier Assistant Cashier 17,000 12,500 11,500 9,500 New Orleans Branch Morgan L. Shaw R. M. Stephenson L. Y. Chapman R. M. Junca Vice President Assistant Vice President Cashier Assistant Cashier 18,000 13,500 11,500 9,500 It is noted that Mr. S. P. Schuessler will reach retirement age 1960 and, accordingly, payment of salary to him is approved only ' Idle date of his retirement. duri- to 41, Your Chairman will be advised in a separate letter with respect salaries of the President and First Vice President* Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 17 12/9/59 ADORERS OFFICIAL CORRECIPONCIENCE OARC TO THE December 9, 1959 NTI C°111,FR 1Y• Carl E. Allen, President, rederal Reserve Bank of Chicago, Chicago 90) Illinois. °ear Mr. Anent The Board of Governors approves the payment of salaries to the , following officers of the Federal Reserve Bank of Chicago and its ! 1 ?troit Branch for the period January 1, 1960 through December 31, 1960, n the rates indicated, which are the rates fixed by your Board of uirectors as reported in your letter of October 29, 1959: Name T. Baughman "E. Bierbauer Its. ' J. Oapouch , 4 * A. Davis A...IL Dawson W. R. Diercks P. A. Dons P. O. Edler Je J. Endres O. Fults g s C. Gallagher L. A. Gohr 1. R. Griam ( 1;' M. Gustayson ;° A. Hansen A. Heath ,,;1. Helmer 116 Hodge R e Co Holland Title Vice President Assistant Vice President Assistant Cashier Assistant Cashier Assistant Cashier Vice President Assistant General Auditor Assistant Cashier General Auditor Assistant Chief Examiner Assistant Counsel Assistant CashierAssistant Cashier Vice President Assistant Cashier Assistant Vice President and Assistant Secretary Vice President Vice President, General Counsel, and Secretary Vice President Annual Salary $18,000 11,500 9)500 11,500 11,250 13,025.72 14,000 9,000 20,000 13,000 11,200 11,500 11,000 16)000 10,000 14,000 18,500 20,000 17,000 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Ure Carl E. Allen —2 Annual Salary Title Name W. O. Hume L. H. Jones C. T. Laibly G. W. Mitchell R. A. Moffatt Dick Netzer R. J. Newman L. M. Ross R. S. Schultz B. L. Smyth R, E. Sorg J. J. Srp G. T. Tucker C. P. Van Zante C. G. Wright Assistant Cashier Vice President and Cashier Vice President Vice President Assistant Vice President Assistant Vice President Vice President Chief Examiner Vice President Assistant Vice President Assistant Cashier Assistant Vice President Assistant Cashier Assistant Vice President Assistant Vice President $11,000 19,500 17,500 22,500 11)000 13,000 17,000 14,000 114,000 16,000 11,500 13,000 13,000 14,500 11,500 Detroit Branch R. IL P. C. Bloomfield Carey W. Lamphere O. G. R. A. Rickel A. J. Swaney Wiegandt Assistant Vice President Assistant Cashier Assistant General Counsel Assistant Cashier Vice President Assistant Cashier 15,250 10,000 13,750 10,000 20,000 13,000 It is noted that Mr. Van Zante will reach retirement age duri_ oni4dIg 1960 and, accordingly, payment of salary to him is approved 14 jto the date of his retirement. The Board also notes that re Diercks, who effected retirement October 1) 1959, but had been 19e6neloyed for one year, will leave your Bank's employ October 1) and payment of salary to him is approved only to that'' date. therefore, reupee Your Chairman will be advised in a separate letter with to the salaries of the President and First Vice President. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. . 4 BOARD OF GOVERNORS 4,:ntitts14,4 ' 0 1 03444 OF THE t , FEDERAL RESERVE SYSTEM 141' WASHINGTON 25, D. C. Item No. 18 12/9/59 ADORES!. OFFICIAL CORRE•PONOCNCE TO THE IBOARD 41fts% December 9, 1959. CONFIDENTIAL (FR Delos C. Johns, President, Federal Reserve Bank of St. Louis, St. Louis 66, Missouri. Dear Mr. Johns: The Board of Governors approves the payment of salaries to the fo llowing officers of the Federal Reserve Bank of St. Louis and its a, Brano hes for the period January 1, 1960 through December 31, 1960, the rates indicated in your letter of November 13, 1959: if so fixed 'Y Your Board of Directors: Name Reward H. Weigel Joseph C. Dale M. Wotavra Lewis George E. Kroner Romer Jones Marvin L. Bennett George W. Hirshman William J. Abbott Earl R. Billen SteWillis L. Johns phen Koptis Orville 0. wyrick kr'T. Ant Woodrow W. Gilmore ,Tohn J. Hofer raill Salzman Gerald T. Dunne INes M. Geiger 411b ur H. Isbell Richard 0. 2,e(IrCe W. Kaley Dennison E. Walker Title Vice President and Secretary Vice President Vice President Vice President Vice President Vice President General Auditor Adviser Assistant Vice President Assistant Vice President Assistant Vice President Chief Examiner Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President Counsel and Assistant Secretary Assistant Vice President Assistant Chief Examiner Assistant Vice President Assistant Vice President Assistant Vice President Annual Salary $19,500 19,500 19,500 19,500 20,000 15,500 16,500 17,500 14,500 14,000 15,000 16,500 15,000 12,700 11,500 13,000 12,500 12,000 14,000 11,000 10,000 10,000 BOARD OF OVERNORS or THE FEDERAL RESERVE SYSTEM Delos C. Johns Name Title Annual Salary Little Rock Branch ?red , SheriBurton ey C. Davie Clifford Wood J, Bryan Vice President and Manager Cashier Assistant Cashier Assistant Cashier $18,500 12,000 8,500 9,000 Louisville Branch Donald L. Henry John W. Menges Clarence J. Wosrta A. Nelson Vice President and Manager Cashier Assistant Cashier Assistant Cashier 19,500 12,500 10,000 9)500 Memphis Branch Prancis DeVos 4enjamin B. Monaghan Anderaon "(1411 F rancis Breen, Jr. Vice President and Manager Cashier Assistant Cashier Assistant Cashier 15,000 10,000 9,000 8,500 Your Chairman will be advised in a separate letter with -vect to the salaries of the President and First Vice President. Very truly your (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE Item No. 19 12/9/59 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. AOOPIESSI orrictAL CORRESPONOENCE TO THE BOARD December 15, 1959 C°11-------2--__LIIAL F31V- FR ! rs Frederick L. Deming, President, rederal Reserve Bank of Minneapolis, Minneapolis 2, Minnesota. 13ear Mr. Deming: The Board of Governors approves the payment of salaries to the Lou . officers of the Federal Reserve Bank of Minneapolis and its nele°wing a, na Branch for the period January 1, 1960 through December 31) 1960, he rates indicated, which are the rates fixed by your Board of the 1D as reported in your letters of October 14 and December 11, 1959: Annual Name H. G. McConnell M. H. Strothman, Jr. Groth 4r4 L. Parsons R. X. Crobel A. J. A. W. McNulty Johnson M. B. Holmgren 0.A. Van Nice M. E. Lysen o F. ' Litterer C. Ries 1?* J. Cramer °* 11% Ohnstad Al. P. e. E. Bergquist I J. ! Gillette C. Bronner "14 'O. Sather IT '4. O'Brien Title Vice President and Secretary Vice President and General Counsel Vice President and Cashier Director of Research Chief Examiner General Auditor Vice President Vice President Assistant Vice President Operating Research Officer Business Economist Assistant Vice President Assistant Vice President Assistant Vice President Assistant Counsel Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Salary $21,500 18,500 18,000 16,500 111,250 14,750 15,250 3.4)5oo 13,000 13,500 12,500 12,000 11,000 12,250 10,500 10,500 11,250 10,500 10,000 10,500 BOARD OF t3OVERNORB or THE FEDERAL RESERVE Iv EM Frederick L. Deming Title Annual Salary Helena Branch X xossum J. L. 'Heath R W. Worcester to Vice President Assistant Cashier Assistant Cashier $16,000 9,500 10,000 Your Chairman has been advised in a separate letter with respect the salaries of the President and First Vice President. Very truly yours, \ Merritt Shirmal), Secretary.' BOARD OF GOVERNORS OF THE Item No. 20 12/9/59 FEDERAL RESERVE SYSTEM WASHINGTON 25. ID. C. ADDRESS arriciAL CORRESPONDENCE TO THE BOARD December 9, 1959 C°11PIDENTIAL (1,1i) :,,* 1111 RaYinond W. Hall, ,'"airraan of the Board, Ivederal Reserve Bank of Kansas City, tallsas City 6, Missouri. °ear Mr. Hall: The Board of Governors approves the payment of salaries to _ 101lowing officers of the Federal Reserve Bank of Kansas City and Branches for the period January 1, 1960 through December 31, 1960) at the rates indicated, which are the rates fixed by your Board of Lrectors as reported in your letter of November 16, 1959: the Name George Title Clay C larence W. Tow John T. i3oysen , J• S Handl ord L• U. Sherman C. A. Crayons Joseph R. Euans R. Larson T. White 17* P. , Fairley P* Willard Edwards C. Craig G orge C. Joh-r1 W. Rankin Snider rt• Thomas 14:11:eur T. Billington R. Cawthorn° l'aYillorid J. Doll Vice President, General Counsel, and Secretary Vice President Vice President and Cashier Vice President Vice President Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President General Auditor Chief Examiner Director of Personnel Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Industrial Economist Financial Economist Agricultural Economist Annual Salary $22,500 21,000 18,000 15,000 12,500 12,600 12,600 12,800 11,000 11,500 15,100 11,000 10,200 11,600 10,600 10,000 13,200 15,200 15,000 BOARD OF 00VERNORS OF THE FEDERAL RESERVE SYSTEM Mr. Raymond W. Hall Name Annual Salary Title Denver Branch Cecil Puckett 11. L. Stempel J. R. Zahourek H I F. Krebs Vice President Cashier Assistant Cashier Assistant Cashier $181000 13,200 10,100 9,500 Oklahoma City Branch Ft, L. P. W. P. W. J. Mathes Alexander Farley Milburn, Jr. Vice President Cashier Assistant Cashier Assistant Cashier 18,000 12,600 10,600 9,500 Omaha Branch P. A. Debus Pritz P. v. Doran L. Pleiss Vice President Cashier Assistant Cashier Assistant Cashier 19,000 12,500 11,000 10,000 retirement age It is noted that Mr. R. L. Mathes will reach approved only during 1960 and, accordingly, payment of salary to him is to the date of his retirement. respect to the You will be advised in a separate letter with alaries of the President and First Vice President. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS 0100*ttg., 63. 01006,44 4* 441°0 4 OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 21 12/9/59 441: ADDRESS OFFICIAL CORRIC•PONDENCIE TO THE BOARD ***: 4 "ti Ott*g.* December 9$ 1959 114r. Watrous H. Irons, President, Federal Reserve Bank of Dallas, Dallas 2, Texas. Dear Mr. Irons: The Board of Governors approves the payment of salcries to the following officers of the Federal Reserve Bank of Dallas and its Branches for the period January 1, 1960 through December 31, 1960, at the, rates indicated, which are the rates fixed by your Board of Directors as reported in your letter of October 8, 1959: Name L. G. Pondrom G. R. Murff Morgan H. Rice Arthur H. Lang Thomas Wr, Plant Thomas A. Hardin James L. Cauthen James A. Parker George F. Rudy lililip E. Coldwell McC. Pritchett Thomas R. Sullivan Berman Kilman H. Berg ItOr E. Bohne Emmett A. Thaxton, Jr. ,!,/aIlles O. Russell aobert H. Boyldn Title Vice President Vice President Vice President and Secretary of the Board General Auditor Vice President and Cashier Vice President Vice President Vice President General Counsel and Assistant Secretary of the Board Director of Research Assistant Vice President Assistant Vice President Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Chief Examiner Assistant Counsel Annual Salary $22,500 17,250 17,000 15,750 15,000 14,000 12,100 13,000 12,100 14,500 12,100 11,500 11,700 11,200 9,800 9,800 10,700 8,000 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Mr. %trous H. Irons Name -2 Annual Salary Title El Paso Branch Howard Carr there P redric .W. Reed T.C. Arnold Vice President Cashier Assistant Cashier $14,000 10,500 9,000 Houston Branch J. Lee B. J. Cook Troy • Hartung Rasco R. Story Vice President Cashier Assistant Cashier Assistant Cashier 18,500 11,000 9,500 8,800 San Antonio Branch Carl H. Moore A. E. Mundt Alvin E. Russell Pre derick J. Schmid Vice President Cashier Assistant Cashier Assistant Cashier 14,000 11,100 10,300 9,000 It is noted that Mr. Rice will reach retirement age during 1960 and, accordingly, payment of salary to him is approved only to the date of his retirement. Your Chairman will be advised in a separate letter with res— vect to the salaries of the President and First Vice President. Very truly yours, (Signed) Merritt Sherman. Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE Item No. 22 12/9/59 FEDERAL RESERVE SYSTEM WASHINGTON 25, ID. C. ADORERS orricsAL CORRESPONDENCE TO THE IBOARD December 9, 1959. CCINFIDELILL12.1 14r, A. H. Brawner, . 11airman of the Board, Federal Reserve Bank of San Francisco, °an Francisco 20, California. Dep, --Brawner: The Board of Governors approves the payment of salaries to the 1, ,401l0wing officers of the Federal Reserve Bank of San Francisco and ,'*j. Branches for the period January 1, 1960 through December 31, 1960) ;%the rates indicated, which are the rates fixed by your Board of ecters as reported in your letter of October 26, 1959* Name J. L. 1,1 Barbonchielli ,' . B•Einzig A. E• Hemmings B. Merritt R. Millard Morrill A. Mane H. GaliTin t̀,' r W. Lynn 3, Schwartz W. Barrett W. Cavan J. H. Martens H. Maurer, Jr. C. 4. H t Milliken C. 0. P riee Hartlin W hitworth Title Vice President and Cashier Vice President Vice President Vice President Vice President Vice President Vice President and General Counsel Assistant Vice President Assistant Vice President Assistant Vice President Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier General Auditor Administrative Assistant Annual Salary $13,000 15,000 15,000 15,000 19,000 15,000 18,000 13,500 13,000 13,000 10,500 11,000 10,500 10,000 11,000 9,000 13,000 10,000 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Mr. A. H. Brawner Name Annual Salary Title Los Angeles Branch W. F. Volberg C s H. Watkins L E. Carter M. J. Davies Q. D. Parker R. Robinson v. E. Vigus Vice President and Manager Assistant Manager Assistant Manager Assistant Manager Assistant Manager Assistant Manager Assistant Manager $21,000 16,500 9,500 9,000 11,000 11,000 9,500 Portland Branch J. A. Randall D s M. Davenport 0. M. Brown P. K. Grimm Vice President and Manager Assistant Manager Assistant Manager Assistant Manager 17,000 12,000 10,500 10,000 Salt Lake City Branch E. R. A. L. A. G. P. M. Barglebaugh Price Holman Simmons Vice President and Manager Assistant Manager Assistant Manager Assistant Manager 15,000 13,000 10,000 11,000 Seattle Branch J. M. 11. E. Leisner Everson P. Glascock 4'. J. Reff W. R. D. E. Sandstrom Simms Vice President and Manager Assistant Manager Assistant Manager Assistant Manager Assistant Manager Assistant Manager 18,500 13,000 11,000 9,500 12,000 10,000 It is noted that Messrs. A. H. Price, Milliken, Leisner, Simms, Mil lard will reach retirement age during 1960 and that Mr. Everson will be , granted a special service retirement in advance of reaching 05 An-cordingly, payment of salary to them is approved only to the vtetive dates of their retirements. You will be advised in a separate letter with respect to the ealar4 of 'es the President and First Vice President. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary.
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