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Minutes for February 2, 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, 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.
Chm. Martin
Gov. Szymczak
Gov. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
19f;
Minutes of the Board of Governors of the Federal Reserve System
on Monday, February 2,
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
1959. The Board met in the Board Room at 10:00 a.m.
Martin, Chairman
Balderston, Vice Chairman
Mills
Robertson
Shepardson
Mr. Sherman, Secretary
Mr. Kenyon, Assistant Secretary
Mr. Marget, Director, Division of International
Finance
Mr. Hackley, General Counsel
Mr. Farrell, Director, Division of Bank Operations
Mr. Hersey, Associate Adviser, Division of International Finance
Mr. Solomon, Assistant General Counsel
Mr. Hostrup, Assistant Director, Division of
Examinations
Mr. Nelson, Assistant Director, Division of
Examinations
Mr. Goodman, Assistant Director, Division of
Examinations
Mr. Benner, Assistant Director, Division of
Examinations
Mr. Hill, Assistant to the Secretary
Items circulated or distributed to the Board.
The following
items, which had been circulated or distributed to the Board and copies
of which are attached to these minutes under the respective item numbers
indicated, were approved unanimously:
Item No.
Letter to the Federal Reserve Bank of New York
authorizing the waiver of a penalty incurred by
the First National Bank of Milltown, Milltown,
New Jersey, because of a deficiency in its
required reserves.
1
Letter to the Bank of Dearborn, Dearborn, Michigan,
approving the establishment of a branch at 4905 Schaefer
Road. (For transmittal through the Federal Reserve
Bank of Chicago)
2
-2-
2/2/59
Item No.
Letter to the Pacific State Bank, Hawthorne,
California, approving the establishment of a
branch at Slauson Avenue and Overhill Drive in
Los Angeles County. (For transmittal through
the Federal Reserve Bank of San Francisco)
3
Letter to Chase International Investment
Corporation, New York, New York, granting an
extension of time within which to make further
investments in Arcturus Investment & Development,
Ltd. (For transmittal through the Federal Reserve
Bank of New York)
4
Letter to the Chairman of the Presidents' Conference
regarding coin-wrapping services, prepared pursuant
to the discussion at the meeting on Friday, January
23.
5
Memorandum from the Division of Examinations dated
ence
January 30, 1959, relating to an examiners' confer
1959.
17,
and
16
March
on
held
proposed to be
6
Letter to the Federal Reserve Agent at New York
approving the appointment of John P. Ringen as
Assistant Federal Reserve Agent and of Arthur A.
Randn11, Allan C. Hines, and Donald J. Weber as
Federal Reserve Agent's Representatives at the
Buffalo Branch.
7
Thomas, Economic
Messrs. Nelson and Goodman then withdrew and Mr.
Messrs. Young, Director,
Adviser to the Board, entered the room along with
on of Research and
Noyes, Adviser, and Koch, Associate Adviser, Divisi
Statistics.
y Act
Organizations affected by possible Bank Holding Compan
amendments
of January
(Item No.
8).
The Division of Examinations, under date
29, 1959, had submitted a draft of letter which would transmit
Committee (1) a list
to Chairman Spence of the House Banking and Currency
t
-3-
2/2/59
of companies that would become subject to the provisions of the Bank
Holding Company Act of 1956 if the statutory definition of "bank
holding company" were amended to include companies owning or controlling
25 per cent or more of the voting shares of only one bank, and (2) a
list of religious, charitable, and educational organizations that would
be affected by elimination of the exemption of such organizations
contained in section 2(b)(2) of the Act.
Information would also be
transmitted with regard to the effect of deleting section 4(c)(7) of
the Act.
The draft of letter and accompanying lists, prepared in
response to an informal request from the staff of the Committee, had
been distributed to the members of the Board before this meeting.
After responding to several technical questions regarding the
data, Mr. Hostrup reviewed, in reply to an inquiry from Governor Mills,
instances where information of a somewhat similar character had been
furnished to Congressional committees at times in the past.
He also
referred to the indication, given by the Board last summer in responding
to a request from Congressman Sheehan of Illinois, that information of
this kind would be compiled and supplied when requested by appropriate
committees of the Congress in connection with their consideration of
amendments to the Bank Holding Company Act.
In response to a question regarding the advisability of sending
the material also to the Senate Banking and Currency Committee, Mr.
Hostrup commented that there had been no specific request.
2/2/59
After some discussion of this point, the proposed letter, of
which a copy is attached as Item No.
8, was approved unanimously, with
the understanding that a copy thereof, with the same attachments,
would be sent to the Senate Banking and Currency Committee if this
were deemed advisable by Mr. Shay, Legislative Counsel.
Secretary's Note: Later, Mr. Shay
concluded that the material should
be sent also to the Senate Committee,
and this was done on February 9, 1959.
Messrs. Noyes, Hostrup, and Benner then withdrew and Messrs.
Molony, Special Assistant to the Board, and Solomon, Economist,
Division of Research and Statistics, entered the room.
Testimony before Joint Economic Committee.
A second draft of
testimony to be given by Chairman Martin before the Joint Economic
Committee had been distributed to the Board pursuant to the discussion
at the meeting on January 22,
1959. It had now been determined that
the Chairman was to appear before the Committee on Friday, February
6.
The revised draft was discussed and a number of suggestions
were made for changes in wording and emphasis along with possible
supplementary paragraphs to expand the treatment of certain indicated
subjects.
It was then understood that another revised draft would be
distributed for the Board's consideration on Wednesday, February
4.
withdrew
All of the members of the staff except Mr. Sherman then
ation,
and Mr. Johnson, Director of the Division of Personnel Administr
was called into the room.
-5-
2/2/59
Miscellaneous personnel matters.
Governor Shepardson stated
that Mr. Johnson had informed him of a proposal of several Board
employees to get together as a group with a view to putting 0.0
per person a month into a fund to be used in purchasing securities
in the stock market.
Since the group *would be an association of Board
employees, Governor Shepardson raised the question whether this was an
appropriate activity to have identified with the Board's organization.
The consensus of the Board was that the organization of a group
of Board employees for the purpose described would be undesirable, and
it was understood that the employees would be so informed by Mr. Johnson.
Governor Shepardson then cited an instance in which a member of
the staff would participate in the distribution of an estate that owned
shares of stock in a commercial bank.
Question had been raised as to
whether, even though the staff member was not associated with examination
or bank supervisory activities, it would be preferable for him to dispose
of the bank shares rather than to hold them.
Governor Shepardson noted
that there was a market for the shares, that their sale would not present
a substantial problem to the employee, and that he was quite ready to
follow that course if it seemed desirable.
It was the consensus that
the employee should be informed that within a reasonable period of time
it would be preferable for him to dispose of the shares of bank stock
rather than to hold them as an investment, and it was agreed that
Governor Shepardson would so inform the individual concerned.
2/2/59
-6Governor Shepardson then reported an invitation that Mr. Thomas,
Economic Adviser, had received to speak at a meeting of two committees
of a large industrial corporation for the purpose of discussing monetary
policy.
The meeting would be attended by approximately 15 persons and
would result in the use of approximately one day for Mr. Thomas, including
travel time.
There was a discussion of the desirability of having members of
the Board and its staff take advantage of opportunities to inform
management as well as other groups regarding monetary and credit matters,
it being noted that educational activities of this sort could produce a
better understanding of the Federal Reserve and its policies and
objectives.
On the other side, it was suggested that attendance of
a member of the Board or a member of the staff at a small meeting such
as this at some distance from Washington was of doubtful value to the
System, especially since the corporate body concerned might be assumed
to be seeking information that would assist it in finance or management
matters rather than for the purpose of helping to further an understanding
of monetary policy.
While it was recognized that there were both advantages
and disadvantages to such an arrangement, it was agreed that in this case
it would not be desirable for Mr. Thomas to accept the invitation and
that Governor Shepardson should so inform him.
2/2/59
-7Carry-over of unused annual leave.
Governor Shepardson then
referred to the subject of carry-over of unused alumni leave under
on
unusual circumstances, which had been discussed at the meeting
January 30.
He stated that he thought there was agreement at that
meeting with his recommendation that, in certain cases where an
during the
employee had not been able to use all of his annual leave
the Board
calendar year in which it was earned and thus would lose it,
months of
would make provision to permit its use within the first four
e
the following calendar year with the understanding that the employe
the leave
would not be permitted to increase his leave ceiling, that
s
carried over would not be added to any other earned leave for purpose
the
of increasing the lump sum payment at time of termination, and that
e only in
privilege of carrying over such unused leave would be availabl
leave
those cases where the individual had been precluded from taking his
the Board's
during the calendar year in which it was earned by reason of
work or the Board's convenience.
Governor Shepardson said that the exact
might permit
definition of what constituted "unusual" circumstances that
Johnson's
the carrying over of leave had not been spelled out either in Mr.
meeting on
memorandum of December 18, 1958, or in the discussion at the
r
January 30, and, in addition, at the close of that meeting Governo
this
Robertson had indicated that he would not be in favor of making
that had
privilege available on a retroactive basis to apply to leave
not been used during 1958.
Accordingly, he was raising the question
at this meeting for further clarification.
503
2/2/59
-8Governor Robertson said that he feared the Board might get into
an undesirable position through deviating from the general leave program
followed in other Government agencies if it did so on a basis that could
be construed as providing an incentive for carrying over leave beyond
the usupl ceiling where it suited the convenience of an employee.
Where,
because of the Board's work or convenience, an employee did not take his
leave during the year in which earned, it was entirely appropriate to
Permit some leeway whereby that leave might be used in the first part
of the succeeding year.
However, such instances should be authorized
expressly by the Board or by the member of the Board having the assignment
for internal affairs, and such authorization should be granted only in
those instances where it was clear that the employee had been precluded
from taking his leave because of the Board's work.
Governor Shepardson said that he had no idea of creating any
incentive for carrying over leave and that he had thought the earlier
discussion made it clear that his proposal was intended to apply only
in circumstances where an individual was precluded because of the Board's
work from taking his leave during the year in which it was earned.
He
would not object to having such cases subject to the Board's decision,
and he felt that the basis on which leave might be carried over would
be spelled out in the memorandum that Mr. Johnson was preparing for use
in informing the staff of this exception to the leave regulations.
r- -
2/2/59
-9Governor Mills said that he agreed with the general views
expressed by Governor Robertson.
He disliked deviating from the
practice followed generally in the Federal establishment.
He was
encouraged by the report given by Mr. Johnson at the January 30
meeting that the problem was in reality one where the number of
persons losing a substantial amount of leave was very small.
He
was somewhat bothered by Governor Robertson's suggestion that carryover of leave be authorized expressly by the Board in that he wondered
whether the Board would be in a position to make that judgment in sll
cases.
This as a practical matter was something that he felt had to
rest with the section chiefs and division directors who should be in
the position of recommending whether in any given case the carrying
forward of leave along the lines proposed would be justified on the
basis of the Board's work.
Governor Shepardson stated that it would, of course, be
necessary for the Board to base its judgment somewhat on the judgment
of the division heads.
As he had suggested at the meeting last Friday,
it might be preferable to have the recommendation from an individual
division director come to the Director of Personnel for decision with
the understanding that reports of any leave that the Personnel Director
might authorize would be made to the Board.
However, Governor Shepardson
said, he would be entirely agreeable to having the requests for leave
presented to the Board for approval in advance.
50.
-10-
2/2/59
Governor Balderston commented that the important point to him
was that the flexibility that had been suggested for carrying over
leave should come as a result of the Board's initiative in deciding
that an individual be on hand at a time when that might preclude his
taking leave.
There should be a sufficiently formal arrangement so
that it would not be possible for an individual to take advantage of
this flexibility simply because he preferred to have some of his leave
after the close of the year in which it was earned.
Governor Robertson said this was precisely the point he had in
mind.
If an arrangement were worked out along the lines that Governor
over
Shepardson had suggested, and with the safeguards against carrying
leave because of an employee's desire, he would be entirely satisfied
as to the proposal that had been made, including its application to
leave that had been forfeited at the end of 1958.
Governor Shepardson recalled that at the January 30 meeting he
had suggested that a large proportion of the 116 individuals who lost
some leave at the end of 1958 were persons who lost only a few hours
or at most less than a week, and in most of those cases it appeared
that the individuals had wanted to save a small amount of leave till
near the end of the year in case they desired to take it or needed to
under
take it without cutting into the leave permitted to be carried over
the existing ceiling arrangements.
It had been his suggestion then, and
he repeated it now, that the Board should have no concern about the
a
person who had saved leave up to as much as a week so as to be in
_
2/2/59
-11-
position to take some leave right up to the end of the year in case he
SO desired.
In other words, he would not contemplate that this proposal
would apply to any person who would lose less than a week's leave but
rather to persons who because of the Board's work or the Board's
convenience found it necessary to defer taking leave during the year
in which it was earned with the result that a substantial amount of
their vacation leave--more than a week--could not be taken before the
Year-end.
Even if a person was in the position of losing more than a
week's leave, he would be considered for the carry-over only on the
basis that had been discussed, that is, that he had been precluded by
the work of the Board or for the Board's convenience from taking his
leave during the year in which it was earned.
Further discussion brought out the view that the problem should
be dealt with initially by bringing to the attention of division heads
and supervisors the need for arranging work in a manner that would
permit and encourage all individuals to take their leave in the year
In which earned.
In this way, the number of instances in which it
would be necessary to consider permitting the carry-over of leave
should be kept to a small minimum.
Thereupon, Governor Shepardson's recommendation was approved
unanimously, with the understanding that a statement would be prepared
along the lines of the discussions at the meetings on January 30 and
today concerning the basis on which the carry-over of leave might be
Permitted.
;•';
507
2/2/59
-12Secretary's Note: Governor Shepardson transmitted to the heads of divisions such a statement
under date of February 6, 1959.
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
following actions affecting the Board's staff:
Salary increases, effective February
8, 1959
Division
Name and title
Basic annul salary
To
From
Board Members' Offices
Nancy B. Kelly, Secretary
5,920
6,070
10,610
10,850
Research and Statistics
Eleanor S. Frase, Economist
Helen R. Grunwell, Chief Draftsman,
Economic Illustrating Unit
Eleanor J. Pratt, Research Assistant
7,270
7,510
4,o40
4,190
4,790
6,735
4,94o
6,885
5,280
8,570
5,985
8,810
4,o4o
4,135
International Finance
Winifred J. Black, Secretary
Dorothy L. Helprin, Economist
Examinations
Harry G. Felix, Assistant Federal Reserve Examiner
John N. Lyon, Federal Reserve Examiner
Administrative Services
Richard Shaker, Sergeant-Guards
Sri
2/2/59
-13-
Acceptance of resignation
Peggy Ann Long, Secretary, Division of Examinations, effective
February 27, 1959.
Letter to the Federal Reserve Bank of New York (attached
Item No. 9) approving the reappointment of George L. Hacker as
assistant examiner.
Telegram to the Federal Reserve Bank of San Francisco
(attached Item No. 10) approving the appointment of Paul W. Van Etten
as assistant examiner.
BOARD OF GOVERNORS
OF THE
44t1
7:0,.
CO 2,01,2
Clio%
)11,
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
Item No. 1
2/2/59
ADDRESS OPFICIAL CORRE•PONDENCE
TO THE BOARD
cia
February 2, 1959.
Mr. J. P. Jensen, Manager,
Accounting Department,
Federal Reserve Bank of New York,
New York 45, New York.
Dear Mr. Jensen:
the penalty
This refers to your letter of January 22, regarding
New
Milltown,
Milltown,
of
of $88.95 incurred by the First National Bank
the
for
reserves
required
its
Jersey, on a deficiency of 7.7 per cent in
semimonthly period ended January 15, 1959.
of
It is noted that the deficiency resulted from the failure
to
the
$75,000
transfer
to
ent
the member bank to request its correspond
made by the
Federal Reserve Bank, as intended, although the entries were
for deficient
penalties
no
incurred
bank on its books and that the bank has
reserves since 1945.
recommendation, the
In the circumstances, and in view of your
Board authorizes your Bank to waive the assessment of this penalty.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 2
2/2/59
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
February 2, 1959.
Board of Directors,
Bank of Dearborn,
Dearborn, Michigan.
Gentlemen:
Pursuant to your request submitted through the
Federal Reserve Bank of Chicago, the Board of Governors of
the Federal Reserve System approves the establishment of a
branch at 4905 Schaefer Road, Dearborn, Michigan, by Bank
of Dearborn, Dearborn, Michigan, provided the branch is established within six months from the date of this letter,
and approval of the State authorities is in effect as of the
date of the establishment of the branch.
It is understood that the capital structure of the
bank is to be increased in the amount of $200,000 through
the sale of additional common stock.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
000**0,1,
q4 0,4 g0,7,
*Ot
,
OF THE
Item No.
FEDERAL RESERVE SYSTEM
*
2/2/59
WASHINGTON 25, D. C.
*0.A
0
0
ADDRESS OFFICIAL CORREBPONDCNCE
TO THE BOARD
0000*
February 2, 1959.
Board of Directors,
Pacific State Bank,
Hawthorne, California.
Gentlemen:
Pursuant to your request submitted through the
Federal Reserve Bank of San Francisco, the Board of Governors
approves the establishment of a branch in the vicinity of the
intersection of Slauson Avenue and Overhill Drive in the
unincorporated area of Los Angeles County, California, by
Pacific State Bank, Hawthorne, California. This approval is
given provided the branch is established within six months
from the date of this letter and that formal approval of State
.
authorities is effective at the time the branch is established
at
increased
be
to
are
funds
It is understood that capital
least 150,000 prior to establishment of the branch.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
3
BOARD OF GOVERNORS
OF THE
Item No. 4
2/2/59
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
February 2, 1959.
Mr. Robert H. Craft, President,
Chase International Investment Corporation,
18 Pine Street,
New York 5, New York.
Dear Mr. Craft:
Reference is made to your letter of January 13, 1959,
transmitted through the Federal Reserve Bank of New York, regarding the Board's letters of February 21, 1957, and February 19,
1958, which authorized your corporation, subject to various conditions, to make a further investment in Arcturus Investment
Development, Ltd., Montreal, Canada, in form (whether stock or
obligations) up to an amount which, with the existing investment,
would not exceed US7,500,000.
In accordance with your request and on the basis of the
information furnished in your letter, the Board extends to
February 1, 1960, the time within which such investment may be made.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No.
FEDERAL RESERVE SYSTEM
2/2/59
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
February
3, 1959
Mr. Joseph A. Erickson, Chairman,
Conference of Presidents,
c/o Federal Reserve Bank of Boston,
Boston 6, Massachusetts.
Dear Mr. Erickson:
Questions concerning the furnishing of wrapped coin
by the Federal Reserve Benks have been considered on a number of
occasions by the Presidents' Conference and the Board, the most
recent formal consideration of the differing and firm views held
by individual Reserve Banks on this subject having been in 1955.
Informal discussions 'lime that time have indicated thet, while
there has been some change in position on the part of some Banks,
there are still deeply held convictions both for and against the
desirability of providing this service.
The Board has recently reviewed this matter and reached
the conclusion that, in the light of all circumstances concerned,
it would be preferable to leave to the judgment of the manadement
of the individual Banks the determination of whether or not a
Reserve Bank should engage in coin wrapping service. It felt,
however, that to the extent individual Reserve Banks decide to
continue or adopt the practice of furnishing wrapped coin, there
Should be a uniform approach with respect to the rates charged for
that service. The Board requested, therefore, that the Conference
of Presidents review the basis for computing costs of the operation
With a view to placing the charges for the service on a more nearly
uniform basis than now exists, and to securing reimbursement for
you
substantially the costs involved. It will be appreciated if
Presidents'
Will arrange to have such a revicw undertaken by the
Ceaference.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
5
BOARD OF GOVERNORS
Item No. 6
2/2/59
Or THE
FEDERAL RESERVE SYSTEM
Office Correspondence
To
Board of Governors
Fro
Division of Examinations
Date January 30, 1952____
Subject:
Examiners Gonference
Each year the Board has approved the holding of an Examiners
Conference for the purpose of discussing important supervisory„examination,and legal questions. The persons attending the meetings are the
Vice Presidents, Assistant Vice Presidents, Chief Examiners, and occasionally other representatives of the Federal Reserve Banks and various
members of the Board's staff. The most favorable dates for holding the
meetings this year are March 16 and 17. It is planned to hold the meetings in the Board's building. An agenda is prepared for these meetings,
and copies will be available at a later time.
The Board has customarily approved a dinner for the Reserve
Bank representatives and a designated list of Board personnel. In this
connection, the Board took action on November 10, 1949, to provide such
a dinner at a cost not to exceed $10 per person. The dinner held at
the previous meetings in 1958 cost $417.29, or an average of V.58 per
person.
If the Board approves, the dinner will be held at The Shoreham
since most of the representatives of the Reserve Banks stay there, and
this hotel is the most convenient place for that purpose. Usually about
60 persons attend the dinner. The Board has required in the past that a
list of those invited to attend the dinner be submitted for advance approval. This information will be presented to the Board at a subsequent date.
It is recommended that the Board approve the conference to be
held on the above-mentioned dates and the dinner at a cost not to exceed
08.75 per person.
Respectfully submitted,
-7)
(
-
Henry Benner,
Assistant Director,
Division of Examinations.
BOARD OF GOVERNORS
OF THE
Item No.
FEDERAL RESERVE SYSTEM
7
2/2/59
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
February 21
1959
Mr. John E. Bieruirth,
Federal Reserve Agent,
Federal Reserve Bank of New York,
New York 45, New York.
Dear Mr. Bierwirth:
In accordance with the request contained in your letter of
January 19, 1959, the Board of Governors approves the appointment of
Mr. John P. Ringen as an additional Assistant Federal Reserve Agent at
the Federal Reserve Bank of New York and of Messrs. Arthur A. Randall,
Allan C. Hines, and Donald J. Weber as Federal Reserve Agent's Representatives at the Buffalo Branch, effective January 19, 199.
This approval is gtven with the unden,tailding that they will
be solely responsible to the Federal Reserve Agent and the Board of
Governors for the proper performance of their duties, except that,
during the absence or disability of the Federal Reserve Agent or a
vacancy in that office, Mr. Ainen's responsibility All be to the
Board of Governors and the responsibility of the Federal Reserve L.-,-,ent's
Representatives will be to the Assistant Federal Reserve k,ent and the
Board of Governors.
When not cngaged in the performance of his duties as Assistant
Federal Reserve Agent, Mr. Ringen may, with the approval of the Federal
Reserve Arent and the President, perform such work for the bank as will
not be inconsistent with his duties as Assistant Federal Reserve Agent.
Similarly, when not cngaged in he ',)erformance of their duties as Federal
Reserve Agent's Representatives, Messrs. Randall, Hines, and 7.ieuer Aay,
with the approval of the Vice President in charge of the hulfalo branch,
Perform such work for the Branch as will not be inconsistent with their
duties as Federal Reserve Accent's Representatives.
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Mr. John E. Bierwirth
- 2
It will be appreciated if these new appointees are fully
informr, d of the importance of their resoon2ibilities as members of the
staff of the Federal deserve Agent and the need for Aaintenance of
independence from the operations of the Bank in the discharge of these
responsibilities.
Messrs. Ringen, Randall, Hines, and Weber should execute the
usual Oaths of Office which are to be forwarded to the Board of Governors.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
G
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 8
WAS
2/2/59
OFFICE OF THE CHAIRMAN
February 2, 1959.
Honorable Brent Spence, Chairman,
Committee on Banking and Currency,
House of Representatives,
Washington, D. C.
Dear Mr. Chairman:
lly
In compliance with your request, transmitted informa
es
compani
136
of
list
a
d
enclose
is
there
to Mr. Shay by Mr. Cardon,
would
tly
apparen
tion,
informa
le
availab
which, based on readily
Company Act
become subject to the provisions of the Bank Holding
" is
company
holding
"bank
of
ion
definit
ry
of 1956 if the statuto
or
cent
amended to include companies owning or controlling 25 per
duplithe
more of the voting shares of only one bank. Eliminating
s another
cation which results from cases wherein one company control
es
compani
and the latter controls the subsidiary bank, the 136
represent 128 separate cases.
Also enclosed is a list of religious, charitable, and
tion
educational organizations which would be affected by elimina
2(b)(2)
section
in
of the exemption of such organizations contained
of the Act.
It is understood that you desire information also as to
the effect of deleting section 4(c)(7), which exempts labor, agriments of
cultural, and horticultural organizations from the require
At
ations.
organiz
ing
nonbank
in
ts
interes
the Act with respect to
by
d
affecte
be
would
company
holding
bank
present, no registered
"
such deletion. However, if the definition of "bank holding company
aorganiz
is changed to a "one-bank" definition, the following labor
and would be
tions apparently would become bank holding companies
affected by deleting section 4(c)(7):
Amalgamated Clothing Workers of America, New York, New York.
,
Chicago Joint Board, Amalgamated Clothing Workers of America
Chicago, Illinois.
United Mine Workers of America, Washington, D. C.
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
110norable Brent SnPnce
-2-
February 2, 3959.
Yon will note that those three organizations and their subsidiary
bnas are included in the enclosed list of "Additional Bank Holding
Componior; under One-Psnk Definition."
Particular attention is directed to the fact that the lists
are incomplet, for reasons stated in footnote 1 of the list of
"Additional Bnnk Holding Companies under One-Bank Definition." As
indicated in the footnote, our staff is checking certain additional
sources of information, on the basis of which some cases may be added
to the list, and possibly a few of the listed cases may be eliminated.
Ide will pass on to you any changes resulting from the additional checking, hut it should be understood that the additional checking does not
constitute the exhaustive research and investigation which would be
necessary to be certain that we have a complete list of all companies
which would be affected.
The enclosed lists and the information contained in the
second preceding paragraph are submitted for the information of your
Committee. In view of the fact that our data come in large part from
confidential and other unpublished sources, the Board has not published
the lists and feels that a number of the individual names should not
be published. In the circumstances, the Board respectfully requests
that the information as to individual cases contained in the enclosed
lists and in this letter be treated as confidential.
Sincerely yours,
McC. Martin, Jr.
Enclosures 2
I
BOARD OF GOVERNORS
90011***4
OF THE
,0i
4,444000456.4,:
(
,ov,..1.
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
• ..,,,„,,k4 i;., _
Item No. 9
2/2/59
ADDRESS OFFICIAL CORRESPONDENCE
TO THE HOARD
1
{I
.0.
I c4 tx 0.,
'
February 2, 1959
Mr. John F. Pierce, Chief Examiner,
Federal Reserve Bank of New York,
New York 45, New York.
Dear Mr. Piercez
In accordance with the request contained in your
letter of January 271 1959, the Board approves the reappointment of George L. Hacker as an assistant examiner for the
Federal Reserve Bank of New York. Please advise the Board if
the reappointment is not made effective February 16, 1959, as
planned and as to the salary rate.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
S42.0
TELEGRAM
LEASED WIRE SERVICE
Item
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
No. 10
/2/59
2
February 2, 1959
SWAN - SAN FRANCISCO
Reurlet January 28, 1959, Board approves appointment of Paul W.
Van Etten as an Assistant Examiner for the Federal Reserve Bank
of San Francisco. Please advise date of appointment.
(Signed) Kenneth A. Kenyon
KENYON
@FedFRASER