The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
The attached minutes of the Board of
Governors of the Federal Reserve System on
February 210 19620 which you have previously
initialed, have been amended to correct a
factual error in the last paragraph on page 14.
If you approve these minutes as amended,
please initial below:
Chairman Martin
Governor Mills
Governor Balderston
Governor Robertson
Governor Shepardson
Governor King
Minutes for
To:
Members of the Board
From:
Office of the Secretary
February 21, 1962
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, please initial
below. If you were present at the meeting, your
initials will indicate approval of the minutes. If
you were not present, your initials will indicate
only that you have seen the minutes.
Chin. Martin
Gov. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
Gov. King
Gov. Mitchell
Minutes of the Board of Governors of the Federal Reserve System on
Wednesday, February 21, 1962.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
The Board met in the Board Room at 10:00 a.m.
Martin, Chairman
Balderston, Vice Chairman
Mills
Robertson
Shepardson
King
Mitchell
Mr. Sherman, Secretary
Mr. Kenyon, Assistant Secretary
Miss Carmichael, Assistant Secretary
Mr. Thomas, Adviser to the Board
Mr. Fauver, Assistant to the Board
Mr. Hackley, General Counsel
Mr. Noyes, Director, Division of Research
and Statistics
Mr. Farrell, Director, Division of Bank Operations
Mr. Solomon, Director, Division of Examinations
Mr. Johnson, Director, Division of Personnel
Administration
Mr. Hexter, Assistant General Counsel
Mr. Dembitz, Associate Adviser, Division of
Research and Statistics
Mr. Goodman, Assistant Director, Division of
Examinations
Mr. Leavitt, Assistant Director, Division of
Examinations
Mr. Sprecher, Assistant Director, Division of
Personnel Administration
Mr. Eckert, Chief, Banking Section, Division of
Research and Statistics
Mrs. Ulrey, Economist, Division of Research and
Statistics
Discount rates.
The establishment without change by the Federal
Reserve Banks of Boston, Atlanta, and St. Louis on February 19, 1962)
the rates on discounts and advances in their existing schedules was
413Proved unanimously, with the understanding that appropriate advice
lould be sent to those Banks.
2/21/62
Items circulated to the Board.
The following items, which had
been circulated 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 Deposit Guaranty Bank & Trust
Company, Jackson, Mississippi, approving
aX1 extension of time to establish a branch
in the vicinity of McDowell and McFadden
Roads.
1
Letter to Wells Fargo Bank, San Francisco,
California, approving an extension of time
to establish a branch in Modesto.
2
Letter to Wells Fargo Bank, San Francisco,
California, approving an extension of time
to establish a branch in Vallejo.
3
Letter to the Center for Latin American
Monetary Studies, Mexico City, Mexico,
l'egarding service by Robert L. Sammons,
Adviser, Division of International Finance,
as lecturer at the Center's Tenth Regular
Training Program.
4
Letter to the Federal Reserve Bank of Cleveland approving the payment of salaries to
ertain officers at the head office,
Cincinnati Branch, and Pittsburgh Branch at
'
lates fixed by the Bank's Board of Directors.
5
With reference to Item No. 1, involving an extension of time for
lePosit Guaranty Bank & Trust Company, Jackson, Mississippi, to establish
44 in-town branch, Governor Robertson inquired whether it appeared the
-,us. was attempting to pre-empt a location.
Mr. Leavitt said that Vice
president Denmark of the Federal Reserve Bank of Atlanta had reported
I
2/21/62
-3-
that the bank was having difficulty in getting the plot of land it
wanted and that in his opinion the bank was not trying to pre-empt a
location.
A competing bank was already represented by a branch in the
area in question. The Reserve Bank had recommended granting a one-year
extension of time to establish the branch.
However, the Board's letter
'would grant a three-month extension and indicate that no further
extensions would be considered unless definite steps were taken in that
Period to establish the branch.
Bank automation survey (Item No.
6). A memorandum from Mr.
NoYes dated February 16, 1962, relating to a proposed bank automation
84rrey had been distributed.
It was recommended in the memorandum that
the Federal Reserve System conduct a survey of the automation status
°f all commercial banks having total deposits of $25 million or more.
The proposed survey was designed to meet the information needs of
Irexious groups within the System directly concerned with bank automation.
14 Particular, the survey would aid in scheduling the acquisition of
eq4iPment for processing the increasing flow of encoded checks through
the transit facilities of the Reserve Banks, evaluating the impact of
automation on bank accounting from the standpoint of examination and
8143ervisical, and coordinating the System's banking statistics program
/11th changes in bank accounting procedures.
Attached to the memorandum was a copy of a proposed survey report
te'rm that had been reviewed at the Reserve Banks, discussed with
680
2/21/62
representatives of a number of commercial banks, and revised in the
light of comments received.
The form had also been reviewed by the
chairmen of the two automation subcommittees of the Committee on
Systems and Procedures of the Conference of Presidents of the Federal
Reserve Banks and had been approved by the System Research Advisory
Committee.
Also attached to the memorandum was a draft of a proposed letter
to the Presidents of all Federal Reserve Banks that would advise them
of the Board's approval of the bank automation survey and enclose a
draft of a suggested letter to respondents.
In commenting on the proposed survey, Mr. Noyes pointed out
that it had the support of both research and operating groups and that
it was contemplated that about 1,000 banks would be approached for
information.
After Mr. Eckert had responded to a number of questions regarding
the proposed survey, the Board approved unanimously the conducting of
the survey and the proposed letter to the Reserve Banks. A copy of
the letter is attached as Item No. 6.
Messrs. Goodman and Eckert then withdrew from the meeting.
Request from Securities and Exchange Commission for access to
1.1e_korts of unregulated lenders
.
(Item No. 7).
There had been distributed
e' memorandum from the Legal Division dated February 19, 1962, relating
to a request from the Securities and Exchange Commission for access to
reports by unregulated lenders.
2/21/62
As noted in the memorandum, the Board's Regulations T and U
covered extensions of securities credit by brokers, dealers, and banks.
However, "purpose" lending by others had not been subjected to similar
Board regulation, although the Securities Exchange Act of 1934 authorized
the Board to regulate all credit for the purpose of purchasing or carrying
registered securities (with limited exceptions) in order "to prevent the
excessive use of credit for that purpose."
In connection with the revision of Regulation U that became
effective June 15, 19590 the Board had adopted section 221.3(q) to close
a loophole through which unregulated bank credit was available to the
stock market.
The procedure involved the making of unsecured loans by
banks to finance companies or other nonregulated persons, with the
latter relending the funds for the purpose of purchasing or carrying
registered securities.
Under the provisions of section 221.3(q), loans
by banks to a person not subject to the Board's Regulations T and U
vho was engaged principally, or as one of the person's important
activities, in the business of making loans for the purpose of purchasing
Or carrying registered stocks might not be made "without collateral or
without the loan being secured as would be required ... if it were
secured by any stock".
All loans to such persona were made subject
t0 all of the other provisions of Regulation U unless "effectively and
Unmistakably separated and disassociated from any financing or refinancing,
for the borrower or others, of any purchasing or carrying of stocks so
registered."
2/21/62
-6In order that bank loans to such persons might be identified,
the Board included a provision in Regulation U which required all lenders
Iflaking
any "purpose" loans in the ordinary course of business to file
such reports as the Board might specify.
In December
1959 the Board
adopted Form FR-728--Confidential Report of Securities Credit Extended
by Lender Other Than a Bank or Broker--in order to obtain sufficient data
from nonregulated lenders to determine those whose activities were of the
kind described in section 221.3(q). By letter to the Board dated
February 150 19620 the Securities and Exchange Commission requested
Recess to "the information contained on forms FR-728". The information
Ifts to be used in connection with an investigation of "the adequacy,
for the protection of investors, of the rules of national securities
exchanges ..." that the Congress had directed the Commission to make.
Attached to the memorandum was a draft of letter to the Securities
44d Exchange Commission that would grant the request to inspect the reports.
Governor Mills commented that his position on this request was
clifferent from the position he had taken on various occasions with
l'sspect to release of unpublished information to the Department of
Justice.
The Board and the Securities and Exchange Commission had joint
liesPonsibilities under the Securities Exchange Act, and in the circumstances he thought there might even have been some justification for
filrrlishing the requested information without specific Board approval.
-7-
2/21/62
Mr. Hexter responded that the staff had considered whether the
information might be released without specific Board approval but had
concluded, after reviewing the Board's revised Rules of Procedure,
that the matter should be brought to the Board's attention. However, in
the course of the study that the Commission was making, the Board might
IP/ish
to authorize the staff to release other information that might be
requested from time to time.
Governor Robertson indicated that he would favor such an approach.
Governor Balderston then raised a question as to whether the
information that had been collected so far with respect to unregulated
lenders would warrant inclusion of this group under the margin regulations.
He 'would not like to create the impression that the Securities and
Exchange Commission was more concerned than the Board.
Mrs. Ulrey replied that, as had been reported in a memorandum
to the Board dated November 21, 1960, the statistics compiled from
F71-728 were not considered to be completely reliable and comprehensive.
11°Nlever, the Board's staff had developed a reporting form that was
designed to secure more complete information, and that form had been
Sent to the Securities and Exchange Commission for consideration some
time ago.
(On July 28, 1961, the Board approved a revised reporting
1311°gram, subject to the understanding that the reporting forms might
be modified in minor respects following discussion with the Securities
alad Exchange Commission.)
2/21/62
-8Mr. Hexter stated that the revised form had been forwarded to
the Commission not so much for review as to work out an enforcement
Procedure.
As soon as such a procedure could be agreed upon, it was
Planned to move ahead with the collection of data on a regular basis from
unregulated lenders.
In response to a question, Mr. Hexter verified that under the
Provisions of the Securities Exchange Act of 1934 the Board had authority
to regulate extensions of credit by any lender for purchasing or carrying
°f securities registered on a national securities exchange.
Under that
authority the Board could extend its regulations to cover groups of
lenders other than those now covered by the provisions of Regulations
T and U.
On the other hand, the Board did not have authority to regulate
1°ans on unregistered securities, but the law could conceivably be
aZended as the result of the current investigation by the Securities and
Exchange Commission.
Chairman Martin stated that he had told the Chairman of the
Securities and Exchange Commission that he felt the Board would favor an
extension of the law to cover such extensions of credit.
In further discussion, Mr. Thomas suggested keeping in mind
the original purpose of the statute. The Board's responsibilities had
been assigned to it for the purpose of preventing an excessive use of
credit that might be detrimental to economic stability.
The thought
behind making the statute applicable only to loans on registered securities
A
-9-
2/21/62
was that this was the area where the volume of credit could be sufficient
to affect economic stability.
based
Governor Mills commented that the margin regulations were
on a statute providing criminal penalties for violations.
He asked
the regulating
Whether it could not be argued, in such circumstances, that
agency not only had a responsibility to see that its regulations were
did not
applied on an equitable basis but also to consider those who
comply with the spirit and the provisions of the statute as being
subject to criminal penalties.
was involved,
Mr. Thomas observed that although a criminal statute
ine how far
discretion was vested in the administering agency to determ
the coverage of its regulations should be extended.
d with
Mr. Hexter remarked that, since the Board was charge
administering a
responsibility in regulating margin requirements for
it might be
statute that provided criminal penalties for violations,
int as
said that for that reason alone the Board should exercise restra
large
to how far it went, so that it would not without good cause place
numbers of persons within the purview of regulation.
and had
Mr. Solomon observed that the Board had started with
for regulating
generally followed the principle that there was no reason
ary to accomplish the
credit in this area to a greater degree than necess
basic objectives of the statute.
There might be a tendency, of course,
ute if the administering
to bring the regulatory process into disrep
4gency discriminated unduly.
Sl;
2/21/62
-10After further discussion of the objectives of the underlying
m.
statute, question was raised regarding the enforcement mechanis
It was pointed out that the extension of credit by brokers was policed
Partly by the Securities and Exchange Commission, partly by the stock
exchanges, and partly by the National Association of Securities Dealers.
The extension of credit by banks for purchasing or carrying registered
the
securities was policed by the bank supervisory agencies through
examining process.
to
Governor Mitchell expressed the view that there would appear
be some advantage in maintaining a regulatory posture that was consistent
With respect to all classes of lenders, following which Mr. Solomon
Pointed out that for many years there was no great amount of securities
credit extended by others than brokers or banks.
Accordingly, there
had been no need to extend the scope of the Board's regulations.
Mr.
Thomas expressed the opinion that the regulations had accomplished the
an
Purpose of the law in reducing the importance of brokers' loans as
element of the whole credit structure.
if
Governor Balderston then suggested that it would be helpful
the staff would keep the Board advised regarding the activities of
Unregulated lenders, to the extent that information was available.
for a
Along this line, Mr. Noyes stated that plans were being made
sUrvey of bank loans in order to determine the volume of loans on unlisted
securities.
t
-11-
2/21/62
Board
Governor King remarked that the question with which the
was specifically concerned at this particular time was the draft of
the
letter to the Securities and Exchange Commission that would grant
d by the Board on FR-728.
Commission's request to examine reports receive
He indicated that he would favor approval of the letter as drafted.
Question was raised as to whether the following sentence in
the draft should be deleted: "In this connection, attention is directed
als,
to section 261.2(c) of the Board's Rules Regarding Information, Submitt
44i Requests, which prescribes that
no person, agency, or authority to whom
is made available, or any officer, director,
thereof, shall disclose any such information
published statistical material that does not
affairs of any individual or corporation.'"
the information
or employee
except in
disclose the
make
The view was stated that it would not seem necessary to
specific reference to this section of the Rules in the letter.
Accordingly,
the letter to the Securities and Exchange Commission was approved unanimously subject to the understanding that this portion of the draft would
be deleted.
A copy of the letter, as sent, is attached as Item No. 7.
During the foregoing discussion Messrs. Connell, Controller,
4nd Bass, Assistant Controller, entered the roan and at its conclusion
w
Messrs. Thomas, Solomon, Hexter, Dembitz, Leavitt, and Sprecher withdre
from the meeting, as did Mrs. Ulrey.
Item distributed to the Board.
The following item, which had
of which is attached to these
been distributed to the Board and a copy
Illinutes under the item number indicated, was approved unanimously:
41
"
2/21/62
-12Item No.
8
Letter to Chairman Robertson of the Senate
Committee on Banking and Currency transmitting
copies of (a) the report of audit of the Board's
accounts for 1961; (b) financial statements as
at December 31, 1961; (c) the auditors' report
on the scope of examination of financial statements; and (d) the auditors' letter of transmittal.
(With a similar letter to Chairman Spence of the
House Committee on Banking and Currency.)
Coverage of Board employees by Federal Employees' Compensation
Act (Item No. 9).
In a letter of June 10, 1960, the Subcommittee on
Foreign Operations and Monetary Affairs of the House Committee on
in the
Government Operations asked, among other things, whether economy
administration of the Board's affairs could be effected by coverage of
Board employees under the Federal Employees' Compensation Act, administered
by the Department of Labor) since this would enable the Board to save the
cost of the insurance it was carrying with a private company.
As explained
in an enclosure to the Board's letter of June 29, 1960, to the SubcomMittee, the Board had been carrying this insurance because the United
States Employment Compensation Commission had ruled that the employees
Of the Board were not eligible for benefits under the Act.
In a letter
dated September 21, 1960, the Board again took up the question with the
Department of Labor.
The Board had now been advised in a reply from
the Department dated February 15, 1962, that it had been concluded that
within the
Members, officers, and employees of the Board were considered
PUrview of the Act.
In view of this ruling, there had been distributed
2/21/62
-13-
8. draft of letter to Liberty Mutual Insurance Company, Washington, D. C.,
canceling the Employer's Liability and Voluntary Compensation Policy
carried with that company.
After Governor Shepardson and Mr. Johnson had commented on
developments leading up to the ruling by the Department of Labor and
the effect of that ruling, question was raised as to the relative cost
Of the two types of coverage.
It was pointed out that the annual
Premium for the policy with the private firm was slightly over $5,000.
With respect to the Federal coverage, Government departments were usually
assessed on a pro rata basis for the miministrative costs incurred by
the Department of Labor.
However, the Board had been advised that it
'would not be expected to pay a pro rata share of the administrative
costs.
Under the proposed arrangement, the Board would pay only the
emount of any claims that might be approved.
Governor Robertson suggested that this raised a question as to
vhether there would be reason for the Board to continue carrying a policy
vith a private firm in order to protect itself against any ultimate losses.
If there was, he suggested that perhaps the Liberty Mutual Insurance
Company might offer a reduced rate in view of the fact that the Department
°f Labor would be expected to represent the Board in case of litigation.
During the discussion that followed, Governor Balderston commented
that the point raised by Governor Robertson involved the question whether
the Board's financial situation was such that it needed to spread its
-14-
2/21/62
ss firms.
risks in the same way as individuals and small busine
He felt
r discussion Governor
that the answer was in the negative, and after furthe
Robertson expressed agreement.
of Board
Mr. Johnson explained that it was to the advantage
liberal
employees to be under the Federal plan, which provided more
policy.
y
benefits in a number of respects than the Libert Mutual
In
no instance would the new coverage be less.
y Mutual
The Board then approved unanimously the letter to Libert
Voluntary
Insurance Company canceling the Employers' Liability and
Compensation Policy.
A copy of the letter is attached as Item No. 9.
Fauver then
All members of the staff except Messrs. Sherman and
Withdrew from the meeting.
reported that
Appointment of director at San Francisco. It was
it had now been ascertained that Dr. Clark Kerr, President of the
to accept appointment, if
University of California, would be unable
tendered, as Class C director of the Federal Reserve Bank of San Francisco
for the unexpired portion of the three-year term ending December 31, 1964.
to explore through Chairman
Accordingly, Chairman Martin was authorized
of the Columbia-Geneva Steel
Whitman whether J. D. McCall, President
accept
Division, united States Steel Corporation, San Francisco, would
g that if it were
the appointment if tendered, with the understandin
be made.
found that he would accept, the appointment would
If Mr. McCall
a similar procedure should be
Ifts unable to accept, it was agreed that
ler, President of the Emporium
followed with respect to Frederic S. Hirsch
CaPwell Company: San Francisco.
2/21/62
-15Chairman Martin was also authorized to consider with Chairman
Whitman the matter of appointing a Deputy Chairman of the San Francisco
Bank for the remainder of the year 1962.
The meeting then adjourned.
Secretary's Notes: Pursuant to recommendations
contained in memoranda from appropriate individuals concerned, Governor Shepardson approved
on behalf of the Board on February 20, 1962, the
following actions relating to the Board's staff:
Salary increase
Robert H. Craft, Digital Computer Systems Operator, Division of
Aaministrative Services, from $5,005 to $5,325 per annum, effective
March 4, 1962.
Leave without pay
Gail E. Mullin, Economist, Division of Research and Statistics,
granted leave without pay from the close of business June 14, 1962, through
August 111 1962, in order to accept a teaching assignment at Indiana
University.
4229ptance of resignation
Ellen C. Cunningham, Statistical Clerk, Division of Bank Operations,
effective at the close of business March 16, 1962.
Governor Shepardson today approved on behalf
of the Board the following items:
Memorandum from the Division of Administrative Services recommendthe appointment of Francis E. Levell as Cafeteria Helper in that
vision, with salary at the rate of $1.69 per hour when actually employed,
effective the date of entrance upon duty.
Letters to the Federal Reserve Bank of New York (attached Items 10
approving the appointment of Nicholas A. Candito, John J. Goggins,
446- Vyto J. Kabashinski as assistant examiners.
BOARD OF GOVERNORS
00***
a44 V GoiN
400
OF THE
Item No. 1
2/21/62
FEDERAL RESERVE SYSTEM
it
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
February 21, 1962
Board of Directors,
Deposit Guaranty Bank & Trust Company,
Jackson, Mississippi.
Gentlemen:
The Board of Governors extends the time within
Which Deposit Guaranty Bank & Trust Company, Jackson,
Mississippi, may establish a branch in the vicinity of
the intersection of McDowell and McFadden Roads in Jackson,
Mississippi, to June 11, 1962, under the authorization contained in the Board's letter of March 10, 19610
Since no tangible arrangments have been made
toward establishment of the branch, the Board has limited
the extension of time to three months. No further extensions will be considered unless definite steps are taken
within that three-month period to establish the branch.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
1
e,C1
I•Lit)
BOARD OF GOVERNORS
OF THE
Item No. 2
2/21/62
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
February 210 1962
Board of Directors,
Wells Fargo Bank,
San Francisco, California.
Gentlemen:
The Board of Governors of the Federal Reserve
System extends to April 20, 1962, the time within which
Wells Fargo Bank may establish a branch in the vicinity
Of the intersection of McHenry and Granger Avenues, Modesto,
Stanislaus County, California, under the authorization contained in the Board's letter of March 20, 1961.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
.
4
4
o
..
*
FEDERAL RESERVE SYSTEM
2/16.
WASHINGTON 25. D. C
*
/1
4I
it
44
Item No. 3
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
February 21, 1962
Board of Directors,
Wells Fargo Bank,
San Francisco, California.
Gentlemen:
The Board of Governors of the Federal Reserve
System extends to May 21, 1962, the time within which
Wells Fargo Bank may establish a branch at 1702 Tennessee
Avenue, near the southeast corner of Tennessee Avenue
and Tuolumne Street, Vallejo, Solano County, California.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 4
FEDERAL RESERVE SYSTEM
2/21/62
WASHINGTON
OFFICE OF THE CHAIRMAN
February 23, 1962
Mr. Fernando ilivera,
Assistant Director,
Center for Latin American Monetary Studies,
San Juan de Letran No. 2 - Pisa 32,
Mexico 1, D. F.
Dear Mr. Rivera:
The Board of Governors has approved sending
Mr. Robert L. Sammons, Adviser, Division of International
Finance, to lecture on the Federal Reserve System at the
Tenth Regular Training Program of the Center for Latin
American Monetary Studies, about which you wrote in your
letter of February 10, 1962. The week beginning July 29,
as suggested in your letter, will be satisfactory.
We are pleased to be able to continue our
cooperation in your Program in this manner.
Sincerely yours,
(Signed) Wm. MCC. Martin, Jr.
WM. Moe. Martin, Jr.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No.
5
2/21/62
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
February 212 1962
CONFIDEN
TIAL (Mt)
tlr. Wilbur D. Fulton, Presi
dent,
rederal Reserve Bank of Cleveland,
Cleveland
1, Ohio.
I3ear Mr. Fulton:
The Board of Governors has approved the payment of
r Ilaries to the
following officers of the Federal Reserve Bank of
th"e.Land
during the period March 1 through December 31, 1962, at
1,',4e rates indicated,
which are the rates fixed by the Board of
'4.rectors
as reported in your letter of February 8, 1962:
Name
Title
Annual Salary
Head Office
Robert G. Hoover
Fred S. Kelly
Donald G. Benjamin
Assistant Vice President
Assistant Vice President
Assistant Cashier
$13,000
14,000
10,500
Vice President
$19,000
Vice President
$21,000
Cincinnati Branch
Fred O. Kiel
Pittsburgh Branch
Clyde E. Harrell
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
0.J
BOARD OF GOVERNORS
OF THE
Item No. 6
FEDERAL RESERVE SYSTEM
2/21/62
WASHINGTON 25, D. C.
ApoRees orricim. CORRESPONDENCE
TO TI-SE BOARD
February 23, 1962.
The Board has approved plans for a survey of automation
stet
us at commercial banks. As indicated in the attached draft of a
zgested letter to respondents, this survey is designed to meet the
;:“Irmation needs of various groups within the System directly conled with bank automation, including examinations, transit, and
questionnaire form is for
Clarch. The attached draft of the
here and distributed
printed
be
will
form
'ormation
only. The
ho
Ei rtly.
:
It is contemplated that the survey be mailed to respondents
requesting
tl.„'un as printed forms are received at the Reserve Banks,
tjt. the completed form be returned within 10 days. The survey is
r all commercial banks, nonmember as well as member, having
toi
te41 deposits of $25 million or more. This does not preclude extenahn of the survey to smaller banks if there is reason to believe that
(xmation among such smaller banks in your District is sufficiently
i:'
ortant. Instructions for editing of the reports and preliminary
°ceasing of the data will be mailed at a later date.
g
Please advise the Board by wire as soon as possible the
air„,.r of reporting forms your Bank will need for use in making the
— veY.
ratube
Very truly
Merri
Se
41010811re.
PRESIDENTS OF ALL FEDERAL RESERVE BANKS.
Sher
et
urs,
BOARD OF GOVERNORS
otottiettet,..
44 OW 6014'40
4{,
OF THE
FEDERAL RESERVE SYSTEM
Item No.
7
2/21/62
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO INC BOARD
February 28, 1962
Mr. Ralph S. Saul, Associate Director,
Special Study of Securities Markets,
Securities and Exchange Commission,
Washington 25, D. C.
Dear Mr. Saul:
Pursuant to the request in your letter of February 150
members of the Special Study will be permitted to inspect the
reports on form FR-728 ("Confidential Report of Securities Credit
Fatended by Lender Other Than a Bank or Broker") that have been
filed with the Board of Governors, and to utilize information
derived therefrom in the work of the Special Study.
Arrangements for inspection of the reports should be made
with Mrs. Ann P. Ulrey of the Board's Division of Research and
Statistics (Code 147, Extension 307).
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
ooti*t 10
O'
r .),y,*
4
'
4)
BOARD OF GOVERNORS
,
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OF THE
it
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Item No. 8
2/21/62
FEDERAL RESERVE SYSTEM
WAS H I NG TO N
e:
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OFFICE OF THE CHAIRMAN
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February 23, 1962
The Honorable A. Willis Robertson,
Chairman,
Committee on Banking and Currency,
United States Senate,
Washington 251 D. C.
Dear Mr. Chairman:
In accordance with the practice followed for
the past several years, there is enclosed a copy of the
audit report made by the firm of public accountants that
audited the accounts of the Board of Governors of the
Federal Reserve System for the year ended December 31,
1961. In addition to the report and financial statements
as at December 310 1961, there is included a copy of the
report on the scope of examination of financial statements, as well as a copy of the letter of transmittal
dated February 13, 19620
Sincerely yours,
(Signed) Wm. McC. Martin, Jr.
WM. McC. Martin, Jr.
Enclosures
BOARD OF GOVERNORS
OF THE
Item No. 9
FEDERAL RESERVE SYSTEM
2/21/62
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
February 21, 1962
Liberty Mutual Insurance Company,
1346 Connecticut Avenue, N. VL,
Washington 6, D. C.
Attention:
Mr. R. H. Ford
Gentlemen:
Attached is a copy of a letter from the Bureau of
Employees' Compensation, United States Department of Labor,
dated February 15, 1962, transmitting that Department's conclusion "that the members, officers, and employees of the
Board are considered employees within the purview of the
Federal Employees' Compensation Act."
Accordingly, the Board of Governors of the Federal
heserve System will no longer need the coverage of its
Employers' Liability and Voluntary Compensation Policy
Number EL1-131-900702-22 TD92 carried with your Company.
Therefore, please consider this as written notice by the
Board of Governors requesting cancellation of the policy
referred to effective upon receipt of this letter by your
Company.
The Board appreciates the excellent service and
counseling that have been received over the many years of
this policy coverap,e.
Very truly yours,
'k
Merritt Sherman)
Secretary.
Enclosure
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
Item No. 10
2/21/62
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
February 210 1962
CONFIDENTIAL (FR)
Mr. Howard D. Crosse, Vice President,
Federal Reserve Bank of New York,
New York*,1, New York.
Dear Mr. Crosse:
In accordance with the request contained in
Your letter of February 15, 1962, the Board approves the
appointment of Nicholas A. Candito and John J. Goggins
as assistant examiners for the Federal Reserve Bank of
New York. Please advise the effective dates of the appointments.
It is noted that Mr. Candito is indebted to
Orange County Trust Company, Middletown, New York, a
State member bank, and Mr. Goggins is_indebted to The
Chase Manhattan Bank, New York, New York, a State member
bank. Accordingly, the Board's approval of the appointment of Messrs. Candito and Goggins is given with the
understanding that neither man will participate in any
examination of the bank to which he is indebted until
his indebtedness has been liquidated.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 11
2/21/62
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
AOORCOS OFFICIAL CORRESPONDENCE
TO THE HOARD
February 21, 1962
Mr. Howard D. Crosse, Vice President,
Federal Reserve Bank of New York,
New York 45, New York,
Dear Mr. Crosse:
In accordance with the request contained in
Your letter of February 16, 1962, the Board approves the
appointment of Vyto J. Kabashinski as an assistant examiner for the Federal Reserve Bank of New York. Please
advise the effective date of the appointment.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
@FedFRASER