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Minutes for
To:
February 19. 1999.
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
Gov. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
1-.10
13
0.
Minutes of the Board of Governors of the Federal Reserve System
on Thursday, February 19, 1959. The Board met in the Board Room at
10:00 a.m.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Martin, Chairman
Balderston, Vice Chairman
Szymczak
Mills
Shepardson
Sherman, Secretary
Kenyon, Assistant Secretary
Fauver, Assistant Secretary
Johnson, Director, Division of Personnel
Administration
Mr. Hackley, General Counsel
Mr. Furth, Associate Adviser, Division of
International Finance
Mr. Sammons, Associate Adviser, Division of
International Finance.
Mr. Sprecher, Assistant Director, Division of
Personnel Administration
Mr. Hexter, Assistant General Counsel
Mr. Chase, Assistant General Counsel
Mr. Hostrup, Assistant Director, Division
of Examinations
Mr. Nelson, Assistant Director, Division
of Examinations
Mr. Benner, Assistant Director, Division
of Examinations
Mr. Hill, Assistant to the Secretary
Mr. Hooff, Assistant Counsel
Miss Hart, Assistant Counsel
Mr.
Mr.
Mr.
Mr.
Gold loan to Haiti (Item No. 1).
Mr. Sammons reported that
the Federal Reserve Bank of New York
had received a telegram from the
NEti°nal Bank of Haiti requesting a 30-day renewal of the $300,000
1c)1(1 1°51 due next week.
This represented the outstanding balance of
a.
loan made on September 25, 1958, which was reduced to $300,000
orl
December 26, 19r,8, and renewed for 30 days.
The unpaid portion was
2/19/59
-2-
again renewed for 30 days at the time a new $400,000 60-day loan was
made on January 26, 1959.
The officers of the New York Reserve Bank
had indicated their intention of recommending favorable action to
their Board of Directors this afternoon.
After reviewing the Haitian situation, Mr. Sammons recommended
aPproval of a 30-day renewal, perhaps coupled with advice to the National
Bank of Haiti that When this loan and the $400,000 loan became due they
voqad not be extended further.
He understood from the State Department
and the International Monetary FUnd that the International Cooperation
Achninistration intended to advance about *5 million to Haiti as budget support
844.
During discussion of the proposed renewal, Governor Mills raised
the
qUestion of a possible distinction between loans already outstanding
alld new loans on gold.
He suggested that renewal of the $300,000 loan
r°1* a period of thirty days without any stipulation concerning further
l'erle .1
would provide flexibility for determination of a future course
°t action in the light of conditions then existing if any additional
equest should be received from the National Bank of Haiti.
It was then agreed unanimously that if the directors of the
ile/`7 York Bank acted favorably on a 30-day extension of the $300,000
1038z
the New York Bank would be advised the Board approved such renewal,
with fib
indication as to whether a further renewal would be granted.
699
2/19/59
-3Secretary's Note: In a telegram dated
February 20, 1959, the Federal Reserve
Bank of New York advised that the Board
of Directors had authorized, subject to
the approval of the Board of Governors,
a 30-day renewal of the 3300,000 loan due
February 26. A copy of the telegram sent
In reply on February 24 is attached as
Item No. I.
Messrs. Sammons and Furth then withdrew from the meeting.
Extension of time to establish branch (Item No. 2).
There had
been circulated to the Board a draft of letter to the Trust Company of
Georgia, Atlanta,
Georgia, g
ting an extension of time within which
to e
stablish a branch in the Lenox Square Shopping Center.
The letter, a copy of which is attached as Item No. 2, was
!Ptr,9ved unanimously.
Clayton Act question.
Question had been raised through the
Federal Reserve Bank of New York whether exception numbered (5) in
Ilection 8 of the Clayton Act would be applicable to the service of
Mrs Sidney Friedman as a director of both The Meadow Brook National
Of Nassau County, West Hempstead, New York
Banlz of
1 North America, New York, New York.
and the Commercial
The question arose because
of the operation by the national bank of a branch in the village of
La
vrence the corporate limits of which coincide with the boundary of
York City.
In submitting the matter, the Federal Reserve Bank of
York referred to the rather unusual geographical considerations
-4-
2/19/59
involved in this case, including the fact that the corporate limits of
the village of Lawrence coincide with the boundary of New York City in
vater and svampland at the head of Jamaica Bay.
that section
The view was expressed
8 of the Clayton Act and the provisions of Regulation L
should be administered in terms of banking areas or service areas within
Idlich competition would be a meaningful factor.
In a memorandum circulated to the Board under date of February
4, 1959, Mr. Chase indicated that the Legal Division would not favor
reconsideration of the entire question of the relationship of suburban
areas to metropolitan areas because it was convinced that the present
ru-le had overwhelming advantages of definiteness and understandability.
811bmitted with the memorandum was a draft of letter to the Federal
Reserve Bank of New York expressing the view that exception numbered
(5)of
section 8 of the Clayton Act would not be applicable to the services
or Mr.
Friedman.
In commenting on the matter, Mr. Chase pointed out that The
Meadov
Brook National Bank had expressed a desire to discuss the case
141th representatives of the Board before a decision was reached.
In view of this request and the favorable recommendation of the
-Ave Bank, it was agreed to advise the Reserve Bank informally of
the likelihood of an adverse decision by the Board in order that the
4 ve Bank or the national bank might have an opportunity to express
Atrther
view if they should so desire.
2/19/59
-5Directors' Day.
A final draft of the program for Directors'
DaY had been distributed and there were no suggestions at this meeting
for any change therein.
Mr. Fauver, Mr. Chase, and Miss Hart then withdrew and Mr. Holahan,
SuPervisory Review-Examiner, Division of Examinations, entered the meeting.
Proposed amendments to section 5155 of the Revised Statutes
(Item N
There had been distributed to the Board a draft of letter
to the Bureau of the Budget expressing views on amendments to subsection (b)
°f section 5155 of the Revised Statutes, proposed by the Treasury, which
y0111d (1) permit a national bank, formed by conversion from a State bank,
to retain and operate any branches in lawful operation by the State bank
at the
time of conversion, and (2) permit a national bank which takes
Over, by
merger or consolidation, a State bank or another national bank
to retain and operate any branches which the continuing bank had in
lawul
Operation at the time of the merger or consolidation.
When the file was in circulation, Governor Mills attached a
r4e111°randum in which he raised certain questions with respect to the
/Irelp°sed legislation.
Mr. Hexter, who had previously discussed those
gliesti°n8 with Governor Mills, reviewed the effect of enactment of the
legislative proposals, pointing out especially that they would not enable
a Ilational bank that had merged with a State member bank automatically
t° c°11tinue the operation of branches of the State bank without approval
"the Comptroller of the Currency.
-6-
2/19/59
Following discussion the letter, a copy of which is attached
to these minutes as Item No. 3, was approved unanimously.
Mr. Hooff then withdrew from the meeting.
Continental Bank and Trust Company.
Under date of February 17
1959, there had been distributed to the Board, with a transmittal memo
randum from Mr. Benner, a memorandum prepared by Mr. Holahan reviewing
the report of examination of The Continental Bank and Trust Company,
Salt Lake City, Utah, made as of October 6, 1958.
The examination
revealed a continued badly undercapitalized condition and a reversal
of the improving trend in adversely classified loans which was in evidence
at the time of the previous examination, made as of December 2, 1957.
The increase in adversely classified paper, most of which increase was
ill the substandard category, was due largely to the inclusion therein
or unsecured
loans totaling $827,000 to the wife and the mother of
?resident Cosgriff.
Altogether, loans to the Cosgriff family and their
interests totaled $1,233,000, or approximately 30 per cent of total
capital funds.
In this connection, it was noted that the bankts member-
ship condition number three required that borrowings at Continental of
Di
embers of the Cosgriff family be paid off within two years.
the
However,
management of the bank, on advice of counsel, had taken the position
that the condition of membership applied_ only to loans which were on
the b°01(8 at the time of admission to membership as a State bank and
2/19/59
-7-
not to subsequent borrowings.
While the Reserve Bank examiner who
conducted the examination recognized that it would be difficult to
establish that
specific Federal or State statutes had been violated as
a result of the Cosgriff borrowings at Continental, he concluded that
they bordered on unsafe and unsound practices and therefore
suggested
that the Board of Governors might wish to give consideration to a
section 30 proceeding. Reserve Bank Vice President Millard had reiterated
this suggestion.
From the simultaneous examination of the affiliated Cosgriff
banks, it had been found that direct family borrowings, together with
those of an affiliate owned and controlled by President Cosgriff,
totaled $3,218,750 as of examination date, including $1,454,500 borrowed
txXxIn banks in the Cosgriff group and $1,764,250 borrowed from nonaffiliated
banks/ principally the Republic National Bank of Dallas, Texas, and
the Central Bank and Trust Company of Denver, Colorado. There appeared
t° be a definite connection between the volume of credit extended to
the Cosgriffs and the size of the deposits maintained by Continental
at the lending banks; the last examination report of Central Bank
"d Trust Company revealed the bank's usual interest rate to
be 5-6 per cent,
Ithel'eas the Cosgriff loans were mostly at 3 per cent and had a maximum
Isate °f 4-1/2 per cent.
This suggested that the Cosgriffs were guilty
8s1 -serving by immobilizing large amounts of Continental's funds
v'svit
2/19/59
-8-
in correspondent banks which accommodated the family with substantial
loans.
However, the inconclusive wording of membership condition number
three and the pendency of the proceeding against Continental under section
9 of the Federal Reserve Act led Mr. Holahan to recommend that no section
30 action be taken at this time.
In the light of the findings of the
simultaneous examination of Continental and affiliatedbanks, as summarized
briefly in the memorandum, it was Mr. Holahan's view that simultaneous
examinations should be made again about mid-year 1959.
At the Board's request, Mr. Benner summarized the highlights
(Dr the most recent examination of Continental,
reviewed the reasons why
the Division of Examinations recommended against a section 30 action at
thte time, and presented for the Board's consideration the suggestion
that arrangements be made for another simultaneous examination of the
0°8griff banks about mid-year 1959.
In this connection, Mr. Holahan
rePorted that the Office of the Comptroller of the Currency and the
Pedsral Deposit Insurance Corporation had indicated willingness to
Par
ticipate.
Governor Mills expressed the opinion that the Board should stand
On the position it had already taken and await the Hearing Examiner's
RePort and Recommended Decision on the section 9
proceeding,
which was
dlle to be submitted on or before March 16, 1959. Without doubt, he said,
Mr.
Cosgriff and his associates followed dubious practices, but those
111'4ctices appeared to be legal and the question was principally one of
,41,1
,vf,
2/19/59
the degree of difference between their practices and those followed by
tankers of satisfactory standing.
As he read the briefs and rebuttal
briefs in the section 9 proceeding, he was left with the feeling that
a court or an outside authority called upon to study a situation of
this kind might find it difficult, at least legally, to distinguish
between the types of lending engaged in by Mr. Cosgriff and his
associates and the types of lending regarded as reasonable by institutions
°f high reputation.
Pointing out that the loans to the Cosgriffs had
been classified only as substandard by the examiner, he said that,
irrespective of the fact that this might be a dangerous type of banking,
he 'would concur in the feeling that a section 30 action should not be
in
stituted.
With regard to the suggestion for another simultaneous examination,
Governor Mills said he had doubt that the information produced as a
e°neequence of so much effort would add enough to the understanding
the Cosgriff situation to warrant such a step.
He saw a decided risk
that in the eyes of outsiders the Federal Reserve could be charged with
taking every opportunity to find fault with the administration of the
C°8glIff banks.
On that ground, he would question whether another
814141taneous examination should be considered, although an accelerated
ex8411ination of Continental Bank and Trust Company would certainly be
t4 or
der. Criticism also might be leveled at the Federal Reserve System
11(
2/19/59
-10-
if a simultaneous examination included banks having nothing to do
'with Mr. Cosgriff's operations except for the fact that they made
1°ane to Mr. Cosgriff, for there might be a suspicion that the Federal
Reserve was witch-hunting without having any definite and demanding
reason for doing so.
From the outset, Governor Mills said, he had
had serious concern about extending the procedure of simultaneous
examination to noninsured affiliated banks because he felt that the
)
,
44. authority for thoseexaminations was tenuous.
Mr. Holahan then reviewed information developed through simultaneous examination last October which contributed to an understanding
Of the situation of Continental.
Those findings) he said, had changed
hi8 earlier view somewhat and led him to believe that it would be
desirable to conduct simultaneous examinations this year to determine
that
changes might have occurred since last October.
In any event, he
noted, the banks would all be examined sometime this year.
Mr. Holahan
added that the conducting of the simultaneous examinations last October
aPparently
met with no serious objection on the part of the management
Of Continental.
In connection with the developing of information on
the Cosgriff borrowings at banks outside of the Cosgriff group, he
said that he
had shared Governor Mills' misgivings but the procedure
to have produced no difficulties.
2/19/59
-11Governor Shepardson said that he felt the recommendation of
the Division of Examinations regarding the suggestion for a section 30
action was correct.
Of
As to the suggestion for an accelerated examination
Continental and simultaneous examination of affiliated banks, he was
not
so sure.
However, Mr. Holahan had pointed out a number of things
that might justify such a procedure and he would be inclined to favor it.
Governor Szymczak stated that he agreed with Governor Shepardson.
Governor Balderston inquired of Mr. Hackley whether the selfevident in this case by virtue of unsecured loans by Continental
to
members of the Cosgriff family and borrowings by the Cosgriffs from
"flaffiliated banks at lower than normal rates of interest, through
carrying balances of Continental at those banks, constituted grounds
t° auPPort a section 30 action or action under section
8(a)
of the
Pederal Deposit Insurance Act.
Mr. Hackley replied that there appeared to be no evidence that
these practices constituted any statutory violation.
The only basis
on
/41lich section 30 proceedings could be instituted, therefore, would be
On the
grounds of unsafe or unsound banking practices, which involved
a matter of judgment.
The Board would have to be quite certain of being
able to
substantiate the fact that the practices were unsafe or unsound
01" that they
endangered depositors in order to be assured that a section 30
"tion could be supported legally.
Any such proceeding presumably would
cover not only
the practices referred to by Governor Balderston but any
2/19/59
-12-
others considered unsafe and unsound, which might include the bank's
undercapitalized position.
It could be argued, of course, that the
section 9 proceeding had gone on for some time, and might continue
for some time in the future, and that if Continental's position was
definitely unsound the Board had a responsibility, irrespective of
the section 9 proceeding, to consider a section 30 action in the
interest of protecting the bank's depositors and discharging its
responsibilities under the law.
Governor Balderston said that he had deep concern as to the
Position in which the Board *would be placed if it took no action on
the matter that had now been brought to its attention.
He recalled
that in 1956 the Board, being concerned about the safety of Continental's
de
positors because of the bank's undercapitalized position, asked
Continental to increase its capital in the amount of at least $1.5
114-I11on.
If the capital cushion was inadequate in 1956, it apparently
Iks even more inadequate now.
Furthermore, the bank now had in its
Portfolio long-term bonds showing depreciation marketwise equal to
°3°Iat one-fourth of the bank's capital structure, and adversely
classified loans had increased substantially since the previous
ex
amination.
However, Governor Balderston said, his concern centered
c're on the self-serving evident from the most recent examination report,
ror the
lending of more than $800,000 to the wife and the mother of Mr.
C°8griff on an unsecured basis added to the risk of the depositors about
*I°8a safety the Board had already indicated concern in its action in
2/19/59
1956.
-13-
Furthermore, the use of Continental deposits to acquire from
Dallas and Denver banks personal loans for the Cosgriffs at a rate as
1°1
'
1 as 3 per cent seemed to mean that the position of the bank's stockholders, other than the Cosgriffs, had been damaged, for supposedly the
deposits placed in the Denver and Dallas banks could have been used
ulcre advantageously in some other manner.
The San Francisco Federal
Reserve Bank had made the suggestion that a section 30 action be looked
into/ and for the Board of Governors, having been placed on notice, to
delay action seemed to him to require most serious consideration.
If
circumstances should develop that caused the bank's depositors to lose
nl°11eY, the Board would be doubly vulnerable because its move to secure
111°re capital had been defeated thus far and because the management had
been engaging in self-serving practices.
If it were felt that the Board
lacked the power to correct this situation, he suggested that it would
be desirable to seek appropriate authority from Congress.
In concluding
hi8 remarks, Governor Balderston said that he would favor taking action
114der section 8(a) of the Federal Deposit Insurance Act since he felt
that this would be in keeping with the duties of the agency having the
"ligation for insurance of deposits and since the Board itself had
Peliding a proceeding under section 9 of the Federal Reserve Act.
Governor Mills questioned whether it could be said that the
1°an8 to the Cosgriff family were in fact bad loans.
It would be
difficult to prove, he suggested, that the Cosgriffs were so lacking
t
2/19/59
ip
-14-
in financial responsibility as to make their notes doubtful assets.
Therefore, he felt that the Federal Reserve would be "treading on thin
ice" if it based a section 30 proceeding on such a premise.
In further discussion Mr. Holahan suggested, as a compromise,
that the Board might wish to consider deferring a decision on a section 30
Proceeding until the next examination of Continental, which examination
could be conducted on an accelerated time schedule.
If at such time
it were found that the Cosgriff indebtedness was still as extensive
eS at present, perhaps the issuance of a section 30 warning would cause
the Cosgriffs to move the loans out of the bank or to divest other assets
order to liquidate the borrowings, and the Board thereby would accomplish
its objective.
After further discussion of the feasibility of a section 30
Proceeding at this time, Governor Mills commented that the issues
Itientioned at this meeting were debated thoroughly in the course of
the section 9 proceeding. These matters were fully explored in the
°1313°sing briefs and probably would be resolved by a court of law at
aome time, since it seemed likely that the case would reach the courts.
The section 9 proceeding, he noted, revolved in large measure around a
difference of approach as to the quality of the bank's assets.
At the conclusion of the discussion, Chairman Martin suggested
that the Division of Examinations be authorized to proceed with arrangements
f°r another simultaneous examination of Continental Bank and Trust Company
2/19/59
-15-
"id affiliated Cosgriff banks on the basis that had been proposed by
the Division, but that consideration of other possible steps be deferred
until the Report and Recommended Decision of the Hearing Examiner on
the current section 9 proceeding vas available.
It being understood that the views of Governor Mills and
Balderston would be reflected in the minutes, agreement was expressed
"with Chairman Martin's suggestion.
Messrs. Hackley, Hexter, Hostrup, Nelson, Benner, and Holahan
then withdrew from the meeting.
Retention of employees past retirement age
(Items
4, 5, and 6).
There had been circulated to the members of the Board two letters from
the San Francisco Reserve Bank and one from the New York Bank regarding
eases where employees had been inadvertently retained in active service
beyond age 65 due to erroneous information as to their ages.
The
Pr°Tosed replies indicated that the Board would interpose no objection
to retention of the specified employees in active service until the
ealaiest feasible retirement date following ascertainment of the correct
data.
In commenting on the subject, Mr. Sprecher suggested that subIlliesion by the Reserve Banks of individual cases of this kind to the
1145ard could be avoided by sending a letter to all of the Banks pertaining
to the appropriate handling of such situations.
He also stated that in
2/19/59
-16-
viay of a circular letter recently issued by the Retirement Committee
Of the Retirement System of the Federal Reserve Banks, the Banks were
nov increasing their efforts to obtain accurate information as to new
employees.
They also were reviewing their records on other employees
as fully as possible with a view to correcting erroneous birth records
in time to assure retirement at age 65.
Mr. Sprecher then read a preliminary
draft of a letter that might be sent to the Reserve Banks.
Agreement was expressed with the procedure suggested by Mr.
SPrecher, and it
as understood that the letter to the Federal Reserve
Eanka would be sent when in a form satisfactory to Governor Shepardson.
Thereupon, the proposed letters to the Federal Reserve Banks
Of New York and San Francisco, copies of which are attached as Items
4
were approved unanimously.
The meeting then adjourned.
Secretary's Note: Governor Shepardson today
approved on behalf of the Board the following
items:
Memoranda from appropriate individuals concerned recommending
the
e following actions affecting the Board's staff:
Appointm
se.m, MarY E. Prather as Cafeteria Helper, Division of Administrative
lees,
salary at the rate of $1.57
-"
-eea, on a part-time basis, with basic sala
ter
r hour hen actually employed.
t•^1
2/19/59
-17-
Salary increase
Ellen Carpenter, Statistical Clerk, Division of Bank Operations,
fr°171 $3,590 to o3,755 per annum, effective February 22, 1959.
Memorandum dated February 12, 1959, from Mr. Young, Director,
Division of Research and Statistics, containing recommendations regarding
the printing, complimentary distribution, and sale of a revised edition
cAlt the technical study on bank debits prepared by Mr. George Garvy.
41
°DRY of the memorandum is attached as Item No. 7.
AL,
2,471.
Secre
41.
tf-t
TELEGRAM
Item No. 1
2/19/59
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
LEASED WIRE SERVICE
WASHINGTON
February 24, 1959
EXTER - NEW YORK
Your wire February 20. Board approves further renewal for
le
thirty days of loan on gold by your Bank to Banque Nationa
de la Republique d'Haiti of $300,000 due February 26 on
same terms and conditions as those of maturing loan.
It is understood that the usual participation will be
offered to the other Federal Reserve Banks.
(Signed) Merritt Sherman
SHERMAN
BOARD OF GOVERNORS
404**,4.4
OF THE
woot,*0,
FEDERAL RESERVE SYSTEM
;I**a
WASHINGTON 25, D. C.
th4ittav,"
Item No. 2
2/19/59
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
February 19, 1959.
Board of Directors,
Trust Company of Georgia,
Atlanta, Georgia.
Gentlemen;
Pursuant to your request submitted through the
Federal Reserve Bank of Atlanta, the Board of Governors
of the Federal Reserve System extends until December 31,
1959, the time within which Trust Company of Georgia may
establish a branch in the Lenox Square Shopping Center at
the intersection of Peachtree Road and Lenox Road, Atlanta,
Georgia, under the authorization contained in the Board's
letter of March 19, 1958.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 3
FEDERAL RESERVE SYSTEM
2/19/59
WASHINGTON 25, D. C.
334
A00111t••
44
orriceAL
COREE•PONOENCIL
TO THE SOAR°
February 19, 1959.
Phillip S. Hughes,
Assistant Director for
Legislative Reference,
ecutive Office of the President,
uureau of the Budget,
ashington 25, D. C.
l)ear hr. Hughes:
a
This is in response to your communications of January 13
...14 30, 1959, in which you request the Board's views on proposals,
l')IiU.tted by the Secretary of the Treasury, to amend subsection (b)
?I' section 5155 of the Revised Statutes. The first proposal mould
tt a national bank, formed by conversion from a State bank, to
b, aln and operate any branches in lawful operation by the state
at the time of conversion. The second proposal would permit
national bank which takes over, by merger or consolidation, a
,ate bank or another national bank to retain and operate any
t'
t nehes which the continuing bank had in lawful operation at the
Ile of the merger or consolidation.
Z
13 , This proposed legislation, from the standpoint of national
seems unobjectionable and would not appear to have any
Ac-Illficant adverse effect upon the State banldng systems.
prer,°rctinJy, the Thard has no objection to enactment of these
-Posals into law.
if both of these
1),01)0attention is called to the fact that
enactment will have the
the
later
law,
are
into
enacted
"a-Ls
It might be advisable
to ('eu of nullifyinf;
enactment.
earlier
c the
"m'Ane these proposals into a single piece of legislabion.
Very truly yours,
(Signed) Merritt Sherman
Yierritt Sherman,
Secretary.
BOARD OF GOVERNORS
OF THE
Item No. L.
FEDERAL RESERVE SYSTEM
2/19/59
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE
eciAao
February 19, 1959.
Mr. H. N. Mangels, President,
Federal Reserve Bank of San Francisco,
San Francisco 20, California.
Dear Mr. Mangelst
In the light of the circumstances stated in your letter
Of February 6, 1959, the Board interposes no objection to the
Payment of salary to January 1, 1959, the effective date of his
service retirement, to Alfred R. Folk, an employee of the Los
Angeles Branch.
It is noted that, in connection with the verification
of Mr. Folk's date of birth looking toward disability retirement,
it was ascertained the birthday he had furnished upon employment
was incorrect and that, instead of attaining age 63 on February 28,
19581 he had reached age 67 on such date.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 5
2/19/59
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE HOARD
February 19, 1959.
CONFIDENTIAL (FR)
Mr. H. N. Mangels, President,
Federal Reserve Bank of San Francisco,
San Francisco 20, California.
Dear Mr. Mangels:
In the light of the circumstances stated in your letter of
'February 6, 1959, the Board interposes no objection to the payment
,1f salary to Mrs. Arley N. Fossey, an employee of your Bank, until
1°
arch 1, 1959, the date of her retirement.
It is noted that documentary evidence now in hand has
shown that Mrs. Fossey was born, not in 1900 as stated on her
'PPlication for employment filed in 1942, but in 1889; and that she
4-3 nOW 69 rather than 58 years of age°
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
BOARD OF GOVERNORS
s io{ett**4
OF THE
44 *4 Sig 4fil,*p
il
*
I tr
A.
i
FEDERAL RESERVE SYSTEM
WASHINGTON 25, O. C.
.*
0
0
Item No.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
4;2:k MA
I
February 19, 1959.
Mr. Walter H. Rozell, Jr.,
Vice President,
Federal Reserve Bank of New York,
New York 45, New York.
Dear Mr. Rozell:
Thank you for your letter of January 30, 1959, regarding the
!:Ivl-ce that your Bank has received from an employee of the Cable
'
1:4-71sion, Foreign Department, that she was barn on
January 29, 1892,
ather than in 1900, and that she was, therefore, 65 on January 29, 1957.
It is noted that the Retirement Committee will interpose no
°Nection to the retention of the employee,
Miss Katherine G. Day, in
the 4)an
t__
kls employ to March 1, 1959, which is the first day of the first
-"Ilth in which it is practicable to effect retirement in the case.
6
2/19/59
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
,r4)
BOARD OF GOVERNORS
Item No. 7
2/19/59
Of THC
FEDERAL RESERVE SYSTEM
)ffice
Correspondence
- se
• iag
itcsaaipia_a...aall
-
Date Fehrux,7 12, 1959
Subject: Printing of Revised Edition-TIAbits Study
It is recommended:
(1) That the Division of Research and Statistics and the
by the Board to
„,;11.°11 of Administrative Services be authorized
copies of a
3,000
g
printin
;:i"-Lete the necessary arrangements for
ment of
Develop
The
study,
al
8 ''sed edition of the System technic
Fr. Debits and ClearinFs and Their Use in Economic Analysis.
lilting costs have been estimated at about ',3,800.
(2) That the same policy of complimentary distribution
rolioWed
kr ed for other technical studies be adopted. This would provide
Reserve
42urnishing the pamphlet on a complimentary basis to Federal
n and
(foreig
hments
establis
and
""; Government departments, agencies
do.
onal
educati
at
teachers
and
ans
inilestio) including central banks; librari
adVtutions; public libraries; the press; and a limited number of
and Statistics to
rec...?ssees specified by the Division of Research
Ive copies in the initial distribution.
'
per copy and
(3) That the new pamphlet be sold for $1,00
t.
each for 10 or more copies sent in one shipmen
the
Fed
of
This System technical study, by George Garvy, Adviser
1952.
June
in
d
publishe
first
Reserve Bank of New York, was
there have
Since the initial printing in 1952 of 2,000 copies
of stock.
out
now
is
t
t
been
pamphle
The
te, wo reprints of 1,000 copies each.
and
tion,
publica
since
occurred
becau'e important changes in data have
revised
a
of
issuance
study,
this
edit.se of the continued interest in
submitted to us
the 1°11 is now considered appropriate. Mr. Garvy has
version was
revised
The
ry.
necessa
ranges which he believes to be
y
Advisor
h
Researc
System
the
iwed and approved, on behalf of
OorIlle
Reserve
Federal
the
of
nt
Preside
krik ttee, by Mr. Robert Holland, Vice
.
printer
the
to
go
of Chicago. It is now ready to
Pr
OW
A
jled
or in the 1959 3udget of )ivision of :idministrative Services
@FedFRASER