Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, February 10, 1953, Volume 40, Part 1

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Minutes of actions taken by the Board of Governors of the
Federal Reserve System on Tuesday, February 10, 1953.
PRESENT:

Mr.
Mr.
Mr.
Mr.

Martin, Chairman
Szymczak
Evans
Mills
Mr. Carpenter, Secretary
Mr. Sherman, Assistant Secretary
Mr. Kenyon, Assistant Secretary

Minutes of actions taken by the Board of Governors of the Federal
Reserve System on February 9, 1953, were approved unanimously.
Memorandum dated February 5, 1953, from Mr. Young, Director,
on of Research and Statistics, recommending that the resignation of Doris Bruderer, Clerk-Stenographer in that Division, be accepted / to be effective, in accordance with her request, at the close
Of business
February 13, 1953.
Approved unanimously.
Letter to Mr. Purrington, Assistant Vice President, Federal
Reserve Bank of Chicago, reading as follows:
"This refers to your letter of February 4, regarding
the penalty of $261.99 incurred by the Muscatine Bank and
Trust Company, Muscatine, Iowa, on a deficiency in its reserves for the period ended November 30, 1952.
"It is noted that the deficiency resulted from a duplication of entries on the books of the bank in connection
with a transfer of $300,000, which the bank had requested
its correspondent to make; that the error was not discovered
Until it was too late to make an adjustment within the reserve computation Period; and that the bank has never been




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"deficient in its reserves since becoming a member in 1933,
having maintained average balances substantially in excess
of the required amount.
"In the circumstances the Board authorizes your Bank
to waive the assessment of the penalty in this case."
Approved unanimously.
Letter to the Comptroller of the Currency, Treasury Department,
Washington, D. C. (Attention:
the

Mr. W. M. Taylor, Deputy Comptroller of

Currency), reading as follows:
"Reference is made to your letter of December 10, 1952,
enclosing a photostatic copy of an application to organize
a national bank at Colorado Springs, Colorado, under the
title of Citizens National Bunk of Colorado Springs, and
requesting a recommendation as to whether or not the application should be approved.
"We have received the report of investigation of the
aPplication made by an examiner for the Federal Reserve
Bank of Kansas City setting forth information with respect
to the factors usually considered in connection with such
aPplications. While it is evident that the proposed bank
would provide more convenient facilities for some businesses
and individuals in the immediate area it appears questionable
that a real need for the bank exists or that a sufficient
volume of business is available to provide for profitable
operation. An additional adverse factor is the prospect
of outside ownership and control. In the light of information contained in the report, and after careful consideration of the factors set forth in your letter, the Board of
Governors recommends disapproval of the application.
"The Board's Division of Examinations will be glad to
discuss any aspects of this case with you or representatives
Of your office if you so desire."




Approved unanimously, with a
COPY to the Federal Reserve Bank of
Kansas City.

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