Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, February 12, 1959, Volume 46, Part 2

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Minutes for February 12,

To:

Members of the Board

From:

Office of the Secretary

1959

Attached is a copy of the minutes of the
System on
Board of Governors of the Federal Reserve
the above date.
It is not proposed to include a statement
set of
with respect to any of the entries in this
ed to
minutes in the record of policy actions requir
l
Federa
be maintained pursuant to section 10 of the
Reserve Act.
Should you have any question with regard
to the minutes, it will be appreciated if you will
you
advise the Secretary's Office. Otherwise, if
colin
l
initia
were present at the meeting, please
s.
minute
the
e
umn A, below to indicate that you approv
B
column
in
l
If you were not present, please initia
below to indicate that you have seen the minutes.
A
Chm. Martin
Gov. Szymczak
Gov. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson

x
x

622
Minutes of the Board of Governors of the Federal Reserve System
on Thursday, February 12, 1959.

The Board met in the Board Room at

1000 a.m.
PRESENT:

Mt.
Mr.
Mr.
Mr.
Mr.

Martin, Chairman
Balderston, Vice Chairman
Szymczak
Mills
Robertson
Mr. Sherman, Secretary
Mr. Hackley, General Counsel
Mr. Hostrup, Assistant Director, Division of
Examinations
Mr. Nelson, Assistant Director, Division of
Examinations
Mr. Hill, Assistant to the Secretary

Discount rates.

Unanimous approval was given to telegrams to

the
the Federal
Reserve Banks of Cleveland and San Francisco approving
esta
blishment without change by those Banks on February 11, 1959, of

the rates on discounts and advances in their existing schedules.
Items circulated or distributed to the Board.

The following

items, which had been circulated or distributed to the Board and copies
°f which are attached to these minutes under the respective item numbers
cated, were approved unanimously:
Item No.
Letter to the Bank of Passaic and Clifton, Clifton,
w Jersey, approving a temporary reduction in capital
„estIlting from the proposed retirement of outstanding
!',referred stock. (For transmittal through the Federal
lleserve Bank of New York)

1

tter to the Queens National Bank of New York, Springfield
11rdens, New York, advising that Jamcor, Inc., Brooklyn,
4:
York, is not deemed to be a holding company affiliate
except
R:cept for the purposes of Section 23A of the Federal
14 serve Act, and does not need a voting permit from the
‘rd to vote the bank stock it owns. (For transmittal
ile
rough the
Federal Reserve Bank of New York)

2

r




62,
2/12/59

-2-

The meeting then adjourned.




Secretary's Note: Acting in the absence of
Governor Shepardson, Governor Robertson today
approved on behalf of the Board a letter to
the Federal Reserve Bank of New York (attached
Item No. 3) approving the appointment of
Theodore L. Peasley as assistant examiner.

• .!

BOARD OF GOVERNORS

401100*4

OF THE

04 OW 0010,4'00

cri

%

FEDERAL RESERVE SYSTEM'

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41

X
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Item No. 1
2/12/59

WASHINGTON 25, D. C.
ADDRESS OrFICIAL CORRESPONDENCE
TO THE BOARD

4:41

4t
°4,

February 12, 1959.

Board of Directors,
Bank of Passaic and Clifton,
Clifton, New Jersey.
Gentlemen:
The Board of Governors, under the provisions of
i0
Sect
-ion 9 of the Federal Reserve Act, hereby approves a
emporary reduction not exceeding $175,500 in capital by
tmak of Passaic and Clifton, Clifton, New Jersey, arising
tFom the retirement of preferred stock. The Board notes
that subsequent to retirement of the preferred stock on
larch 31, 1959, and prior to June 30, 1959, sufficient
'
.7°211mon stock will be sold to increase capital funds by not
'ess than :??250,000 plus whatever sum is paid holders of
Preferred stock who Dresent their shares for redemption.
is assumed that approval of the capital program has been
Obtained by the bank from the proper State authorities, if
l equired.
'




Very truly yours,

(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.

BOARD OF GOVERNORS
OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON 25, O. C.

Item No. 2
2/12/59

ADORIESIS orrscuAL CORAILIIPONOCNCC
TO MC •OARD

February 12,

1959

J. A. Nelnick, Chairman,
ctue Queens National Bank of New York,
oPringtield Gardens 13, New York.
Dear Mr.
P.elnick:
sour letter of
Jarm, This refers to the request contained in
Reserve
Bank of
Federal
2, 1959, submitted through the
Ne17
of the
Governors
for a determination by the Board of
Brooklyn,
Inc.,
Jamcor,
IT. era.1 Reserve System as to the status of
'‘q York, as a
holding company affiliate.
j,,
From the information supplied, the Board understands that
ti;et°7 Inc. is a holding company for various assets of J. A. ?elnick;
Inc. owns 43,361 of the 85,250 outstanding shares cf
:
°n
x
GL
:
stock of The Queens National Bank of New York, SprinVielL1
dtree2.?, L:cTr York; and that Jamoor, Inc. does not, directly or inolal or control any stock of, or manage or control any
-41n2; institution other than The Queens National Bank of New York.
In view of those facts the Board has determined that
je4tilecr
is not eTra:ed, directly or indirectly, as a business
banking
calla'
the
ass°
stock of, or managing or conbrolli1-1,
;
c
meanin,
the
lithin
companies
trust
banks,
or
,cittions, savinrrs
of ,
accordingly,
etdon 2(c) of the Banking Act of 1933, as amended; and,
.F,) Inc. is not deemed to be a holding co-apany affiliate except
)
to14
,'"e Purposes of section 23A of the Federal Reserve Act, and does
rlot ,
to vote
the eed a voting permit from the Board of Governors in order
uank stock which it owns.
those
If, however, the facts should at any time differ from
Inc.
Jamcor,
"t out
that
, above to an extent which would indicate
°C deemed to be so engaged, this matter should again be




62
J. A. Melnick
!ubmitted to the Board. The Board reserves the right to rescind this
Iletermination and
make a further determination of this matter at any
time on the basis
of the then existing facts.




Very truly yours,

(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.

BOARD OF GOVERNORS
OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.

Item No. 3
2/12/59

ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

February 12, 1959.

CO
NFIDENTIAL (FR)
1,1,1*. R. B. Wiltse, Vice President,
rederal Reserve Bank of New York,
New York
45, New York.
Dear Mr.
Wiltse:
In accordance with the request contained in your letter
ml February 6, 1959, the Board approves the appointment of
Theodore L.
Peasley as an assistant examiner for the Federal
ve
Bank
of New York. Please advise us as to the date upon
„?er
"'la-eh the appointment is made effective.
It is noted that Mr. Peasley is indebted to The National
State B
ank of Newark, Newark, New Jersey, in the amount of 3550
'
tislf the purchase of furniture, payable 03 monthly. kccordingly,
given
app
approval
oval of the appointment of Mr. Peasley is
r
with
'li-1:11.the understanding that he will not participate in any examtl°11 of that bank until his indebtedness has been liquidated.

i




Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.