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Minutes for February 12, 1957 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, if you were present at the meeting, please initial in column A below to indicate that you approve the minutes. If you were not present, please initial in column B below to indicate that you have seen the minutes. A Chin. Martin Gov. Szymczak 1/Gov. Vardaman X Gov. Mills Gov. Robertson Gov. Balderston (Tile Gov. Shepardson X(40.ill:) ttlehed set of minutes was sent to Governor Vardaman in accordance with 13to ,t141 4r , Zer.;2!dure approved at the meeting of the Board on November 29, 1955. They ;:v1d4111-":11Med to the Minutes Section with the statement (see Mr. Kenyon' memo`Nti,°4 February although the Governor was present at the 1957) that alough toc:kig h1p. did ilit ilrrch u.i.d not initial the minutes because no statement3 were attributed -4to rthe uls minutes. Therefore with Governor Shepardson's approval, these -- eing filed without Governor Vardaman's initial. 331 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Tuesday, February 12, 1957. The Board Met in the Board Room at 2:30 p.m. PRESENT: Mr. Mr. Mr. Mr. Balderston, Vice Chairman Vardaman Mills Robertson Mr. Mr. Mr. Mr. Mr. Mr. Carpenter, Secretary Kenyon, Assistant Secretary Thurston, Assistant to the Board Vest, General Counsel Hackley, Associate General Counsel Cherry, Legislative Counsel Governor Robertson, who testified on behalf of the Board this 111°rning before the Senate Banking and Currency Committee regarding the tee Print of the proposed Financial Institutions Act of 1957, reported having been asked by the Committee whether arrangements could be 1g44cle f(3r a member of the Board's staff to provide technical assistance . 14 ce further work with regard to the Committee Print. It appeared, for e4amPle, that assistance might be desired in pointing out the effect Other statutes of statutory changes which would be made by the proPc3sed le the the gislation. He said that his reply was to the effect that when- Committee requested, the Board would be ready to help and that n "ommittee might wish to address any such request to the Chairman of the Board. Of the Governor Robertson went on to say that after the hearing members staff of the Banking and Currency Committee spoke to him further about the possibility of obtaining technical assistance, indicating that they w °lad like to have someone take the changes that would be made in the Fed era]. Reserve Act by the Committee Print and present in narrative 332 2/12/57 -2Such changes and their effect on the present law. He said he responded that the person on the Board's staff best equipped for work Of that kind would be Mr. Hackley, who probably could do such a job within a few days, at which point the Committee staff members indicated that they would have in mind a period of approximately two weeks. also They mentioned certain other work which might be desired, including, Perhaps) a narrative concerning the changes to be made in the Federal Deposit Insurance Act and other statutes. Governor Robertson said he then suggested that the Committee staff specify in writing what kind cit assistance was wanted, and that if such a "blueprint" was furnished he 'would be glad to take the matter up with the Board. He anticipated that such a request might be received this afternoon. Governor Robertson said that he felt the Board had no alternative but -c .0 supply assistance in response to a specific request from the Committee, and he asked whether the Board would want to authorize h. Ufl to work out the matter in such way as he considered most appro13riate lf the request was received. There followed a discussion concerning how much of Mr. Hackley's title aPParently would be required and where the work would be done. It was Proposed that Governor Robertson might suggest that, to the extent °111Patil-11 --e with the requirements of the Committee, Mr. Hackley perform a . Iltles at the Board's offices in order to expedite the task as 11114Q11 as On tile possible. Governor Robertson commented that if work was requested section of the Committee Print having to do with the National Bank 2/12/57 3- it might be possible for Mr. Hackley to have the assistance of Mr. Hexter, Assistant General Counsel. With regard to the type of assistance which would be given, agreement was expressed with the position stated by Governor Robertson and should not that staff assistance should be at a technical level involve discussion of policy decisions. Governor Balderston inquired whether it would be appropriate to get in touch with the Comptroller of the Currency and the Chairman of the Federal Deposit Insurance Corporation to advise them informally °f the probable request from the Banking and Currency Committee for teehnical assistance so that they might be fully informed of the circu mstances. At the conclusion of the discussion it was agreed unanimously (1) that in the event of a formal request from the Banking and Currency Committee for technical assistance, Governor Robertson would inform the Committee that the Board had agreed to make Mr. Hackley's services available, with the sugstent gestion that to the extent consi ts, remen requi with the Committee's the the work be done by Mr. Hackley at Robnor Gover Board's offices, (2) that ardural proce ertson would make such requested rangements for furnishing the appromost assistance as seemed to him e advis would priate, and (3) that he and ncy Curre the Comptroller of the the Chairman of the Federal Deposit of Insurance Corporation informally nse the probable request and the respo which the Board had agreed to make. 7 2/12/57 _L1.. Governor Robertson then discussed certain questions raised by the Banki_ g n and Currency Committee at the hearing this morning regard14 Proposed changes in the administration of the Federal Deposit In81117ae Corporation. He said that he endeavored to avoid responding to questions about the Board's views on the abolition of the Corporation's 1°a.rd- of Directors, but that at one point Senator Robertson indicated that 1, 'le would like to have the views of the Board reported in seven taYs. While Governor Robertson felt, from subsequent developments at the hearing, that it was not entirely clear whether the Senator would Pilrelle his inquiry, he considered it desirable that the Board be conS idering what response it would want to make if the request were made. Following a brief discussion, it was understood that if developments made it necessary for Governor Robertson to report on the subject, the Board would meet to give additional consideration to the matter in the light of the nature of the request. The meeting then adjourned. ton, Secretary's Note: Governor Balders Shepardr Governo acting as alternate to son, today approved on behalf of the Board the following letters: Riehmo,Letter to Mt. Snead Chief Examiner, Federal Reserve Bank of reading as follows: In accordance with the request contained in your let°f February 6, 1957, the Board approves the designation :L the ) ( , rs for the Fedfollowing as special assistant examine ral Reserve Bank of Richmond for the purpose of participating ter 335 2/12/57 -5- in the examinations of State member banks except the banks listed immediately above their names: The Bank of Virginia Richmond Virginia Robert H. Dillard, Jr. A. L. Richardson, Jr. State-Planters Bank of Commerce and Trusts, Richmond? Virginia Marvin A. Palmore, Jr. A. L. Richardson, Jr. The authorizations heretofore given your bank to designate the above individuals as special assistant examiners are hereby canceled. Letter to Mr. Diercks, Vice President, Federal Reserve Bank of Chic ago, reading as follows: t In accordance with the requests contained in your let: 0 r8 of February 8, 1957, the Board approves the designation Donald W. Kelley and Byron J. Loving as special assistant ' exam• lners for the Federal Reserve Bank of Chicago. Please !:Zias the dates upon which the designations are made Deal_ Letter to Mr. Pondrom, Vice President, Federal Reserve Bank of tia, reading as follows: of In accordance with the request contained in your letter theFebruarY 5/ 1957, the Board approves, effective today, :re:I of Donald E. Reily as an assistant examiner Federal Reserve Bank of Dallas. fo; MI
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