The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Minutes for February 4, 1960. 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, please initial below. If you were present at the meeting, your initials will t, indicate approval of the minutes. If you were not presen Your initials will indicate only that you have seen the minutes. Chin. Martin Gov. Szymczak Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. King 42 System Minutes of the Board of Governors of the Federal Reserve on Thursday, February PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. 4, 1960. The Board met in the Board Room at 9:45 a.m. Martin, Chairman Balderston, Vice Chairman Szymczak Mills Robertson Shepardson Sherman, Secretary Kenyon, Assistant Secretary Thomas, Adviser to the Board Shay, Legislative Counsel Solomon, Director, Division of Examinations Johnson, Director, Division of Personnel Administration Mr. Nelson, Assistant Director, Division of Examinations Mr. Goodman, Assistant Director, Division of Examinations Mr. Collier, Chief, Current Series Section, Division of Bank Operations Mr. Mr. Mr. Mr. Mr. Mr. Items circulated to the Board. The following items, which had been circulated to the Board and copies of which are attached to these approved minutes under the respective item numbers indicated, were e further unanimously, in some cases following staff comments to provid information relative to questions raised by members of the Board: Item No. Letter to the Hempstead Bank, Hempstead, New York, 1 Letter to the Clearfield Trust Company, Clearfield, PennsYlvania, approving an extension of time to establish an in-town branch. 2 ' 4:Wav1ng an extension of time to establish a branch 8 in the Town of North Hempstead. 2/4/60 -2Item No. Letter to the Federal Reserve Bank of New York advising that the Board is prepared to grant Permission to The Hanover Bank, New York, New York, to invest in stock of The Gallatin Company, Inc., New York, and for the latter company to invest in stock of The Hanover Bank Trustee Company Limited, uPon execution by The Gallatin Company of an Agreement pursuant to section 25 of the Federal Reserve Act. 3 Letter to the State Bank of Hawley, Hawley, Minnesota, granting an extension of time to terminate its member841p in the Federal Reserve System. 4 Letter to the Community Bank, Steelville, Missouri, Steelville, Missouri, approving an investment in bank premises. 5 Letter to the Comptroller of the Currency recommending unfavorably with respect to an application to organize a national bank at White Plains, New York. 6 Letter to the Comptroller of the Currency recommending favorably with respect to an application to organize a national bank at Cut Bank, Montana. 7 Letter to the Federal Reserve Bank of New York interR?sing no Objection to a leave of absence with pay for °Ir. Coombs to enable him to participate in a mission to India and Pakistan. 8 Letter to the Federal Reserve Bank of New York inter2sing no objection to a leave of absence with pay for vtc. Sedwitz for the purpose of rendering technical assistance to the Central Bank of El Salvador. 9 Letter to the Federal Reserve Bank of Kansas City 10 E and "Proving the payment of salaries to Messrs. Mills Chief as Royer Mr. and nts, ravens as Vice Preside Examiner, at rates fixed by the Board of Directors. 2/4/60 Young, Adviser to the Mr. Goodman then withdrew and Messrs. Noyes, Director, Division Board, Fauver, Assistant to the Board, and Of Research and Statistics, entered the room. and Currency Committee. Request of staff of Senate Banking With t in the promotion of economic reference to S. 2755, a bill "to assis constabilization by requiring the disclosure of finance charges in the Board reported to the nection with extensions of credit" on which r dated January 28, 1960, Senate Banking and Currency Committee by lette ed issuance of a Mr. Shay said that the Committee staff contemplat for the benefit of Committee print to furnish background information and that inquiry the Committee in considering the proposed legislation r of the Board's had been made regarding the availability of some membe the project. staff to render assistance in connection with He also said and Statistics had been that Mr. Pawley of the Division of Research mentioned by the staff of the Committee. It appeared that most of the Committee and that the work would be performed at the offices of the month. 48s1gnment might extend over a period of about a Robertson pointed out that In discussion of the matter, Governor l character and that the current sc)rne of the work appeared to be of a lega that no personnel workload of the Legal Division was such as to suggest be allocated from that Division. Governor Mills, it was With respect to a question raised by to the noted that a copy of the Board's report on S. 2755 bRA been sent 744,- -4- 2/4/6o accordance with the Bureau of the Budget as a matter of information in USU. procedure. agreed that there At the conclusion of the discussion, it was for the would be no objection to offering the services of Mr. Pawley would advise the Purpose indicated, and it was understood that Mr. Shay staff of the Banking and Currency Committee accordingly. . Molony, Messrs. Shay and Nelson then withdrew and Messrs l Counsel, entered Assistant to the Board, and Hexter, Assistant Genera the room. Policy record of Federal Open Market Committee. Under date of memorandum January 26, 1960, there had been distributed, with a covering Market Committee, a refr°rn Mr. Young as Secretary of the Federal Open vised draft of the record of policy actions of the Committee during 1959. taken of In the preparation of this draft, account had been suggestions received from the Committee members, other Reserve Bank Presidents, and members of the staff following distribution of an earlier draft. discussion of At the instance of Governor Balderston, there was the circumstances under which one member of the Open Market Committee (Mr. Hayes) voted against reaffirmation of two continuing operating P°11oies in the form approved at the meeting of the Committee on March 3, 1959. It was recalled that Mr. Hayes had voted in the same manner after discussion at the organization meeting of the Committee in March 2/4/6o -5- 1958, that his position had been recorded in the policy record for 1958, that at the March 3, 1959, meeting there had been no discussion of substance, but that Mr. Hayes had asked to be recorded in the minutes in the same manner as in 1958. The point was made that a draft of the Policy record for 1959 had been inspected by all Committee members and Other Reserve Bank Presidents and that no question had been raised in this connection. It was also noted that any change from the presentation s included in the policy record for 1958 might be misconstrued by securitie dealers and others reading the Board's Annual Report, and reference was made by Chairman Martin to the desirability of publishing the Board's Annual Report for 1959 at as early a date as possible. of Governor Mills then moved that the record of policy actions the Federal Open Market Committee for 1959 be approved for inclusion in the Board's Annual Report in the form of the draft submitted with Mr. Y°Ung's memorandum of January 26, 1960. The motion was seconded by G overnor Shepardson. In discussion of the motion, Governor Robertson suggested deletion from the entries relating to the meetings of the Committee on januarY 27, February 10, and March 3, 1959, of those portions which referred to discussion and expressions of view with respect to the al)Propriateness of then existing discount rate levels. In explanation °I' his suggestion, Governor Robertson said that in his opinion the -6- 2/4/60 ssion of possible discount inclusion of references to Committee discu te what was rate changes gave the appearance of an attempt to dicta to be done by the directors of the respective Reserve Banks, and the to the record of actions inclusion of such references added nothing On open market policy. nor Robertson made this Governor Szymczak said that when Gover ng, he initially felt there suggestion informally prior to this meeti question 'wa$ merit in it. Subsequently, however, he recalled that the ed in previous ,of including references to the discount rate had been debat it was realistic to include Years and the majority of the Board decided Market references to such discussions as actually took place in Open Committee meetings. to With that background, he felt that failure continue the practice might only serve to create uncertainty in the minds of readers of the Annual Report. stating that if the Governor Mills expressed a similar view, suggested deletions were made the record would seem incomplete. appeared to The Chairman suggested that a matter of semantics be involved. ut question the As a practical matter, he felt that witho respective Reserve Bank Presidents are influenced by discussion at the pre°Pen Market Committee meetings as to the position they take in tors. recommendations on the discount rate to direc tends to influence Governor Robertson agreed that such discussion the individual Presidents. the He pointed out, however, that by law -7ish the discount rate. directors of the respective Reserve Banks establ inHe felt, therefore, that the Board should not be in a position of ry fluencing the directors as to their decision, for that would be contra to the spirit of the Federal Reserve Act. raised by Governor In further comments regarding the point ors may find it helpful Robertson, the suggestion was made that the direct to have an indication of what action the Board of Governors is likely ining to take in fulfilling its legal obligation of reviewing and determ the rates fixed by the directors. It was pointed out, also, that public concerning the fact s tatements hat been made by System representatives es discussion of that discussion at Open Market Committee meetings includ the level of discount rates. fact the directors of Chairman Martin then commented that if in a Reserve Bank were not influenced in any way with respect to action made by the taken on the discount rate by such statements as might be President of the Bank as the result of his participation in Open Market discount rate Committee meetings, the deletion of all references to discussion at Committee meetings might be justified. He went on to Bank say, however, that the directors do look to the President of the Market f°r guidance when the latter returns from a meeting of the Open Committee. ting relative to the Governor Robertson responded by commen inadvisability of giving the appearance that the whole Federal Reserve 2/4/6o -8- sYstem is operated from Washington. He felt that the inclusion of references to discount rate discussion in the Federal Open Market Committee policy record only added to such an appearance, and in his ()Pinion this would be detrimental in the longer run. It was his view that a System objective should be to strive for more decentralization. There followed further discussion of the structure of the System and methods of determining policy, including the need for effective co°rdination of the use of Federal Reserve policy instruments. Governor Robertson then said that he would not object to stating sPecifically in the section of the Annual Report containing the Open Market policy record that in Open Market Committee meetings there is discussion of 01 of the tools of System policy with a view to coordination of those instruments. However, since the entries for the respective meetings are for the purpose of recording open market policy decisions, he felt that those entries should be confined to such actions, and that discount rate references should not be included in a way that might indicate influence rather than coordination. There ensued comments on the historical development of the Open Ilarket policy record and on the extent of references therein to the discount rate in past years. In this connection, it was noted that °IllY one President (Mr. Irons) had raised any substantial question reSuch references after reviewing the draft policy record entries rOr 1959. -9- 2/4/60 point made by Governor Chairman Martin then said that although the not see how a complete Robertson was one worthy of consideration, he did rate discussions P°1icy record could avoid references to the discount that had taken place at Committee meetings. The extent to which an individual Reserve Bank director might be influenced when the President views that the of a Bank informed the Board of Directors concerning Board of Governors and the other Reserve Bank Presidents appeared to have to be h°1d with regard to the discount rate apparently would or conmeasured in terms of the character of the individuP1 direct cerned. n Open Market After Governor Robertson noted that at certai e requirements, sugmeetings there had also been comments on reserv regarding gestions were offered by Governor Balderston and Mr. Noyes s that P°ssible changes in the language of the policy record entrie might help to meet the point Governor Robertson had mentioned. he was not so much Governor Robertson stated, however, that general principle concerned about the specific language as about the ng c)f injecting into the Open Market Committee policy record anythi indicating that the Board was attempting to dictate discount rate P°1icY. public mind to He felt there was a growing tendency in the regard the Board as dictating Federal Reserve policy and that this ahould be offset to the extent possible. He suggested that there was those of others with IperhaPs a fundamental difference in his views and 2/4/60 -10- attempt to influence regard to whether the Board of Governors should policy actions and whether the the Federal Reserve Banks in their to influence the Board Federal Open Market Committee should attempt of Governors. thought it was not a matter Chairman Martin responded that he of Of direction but rather of coordination, although admittedly some perhaps a the same elements were involved. He agreed that there was that of Governor Robertson. basic difference in his thinking and motion of Governor Mills that After additional discussion, the Market Committee for the record of policy actions of the Federal Open form submitted 1959 be included in the Board's Annupil Report in the unaniJanuary 26, 1960, was approved with Mr. Young's memorandum of connection with his vote that rn0116.1Y, Governor Robertson explaining in point to which he he had merely wanted to bring before the Board the inclusion of had referred, and that he did not want to vote against which it was Annual Report in the form in the Policy record in the slibmitted to the Board. understanding that minor This action was taken with the correction of typographical errors, technical changes, such as the would be made in the draft of policy record. This understanding sentence in the entry for June 15, "tended also to elimination of a discretion given to the Manager 1959) which referred to the extent of conducting operations rather than c'r the System Open Market Account in the establishment of open market policy. 2/4/60 withDuring the foregoing discussion Messrs. Young and Molony drew, and at its conclusion Mr. Noyes withdrew. Michigan Avenue National Bank of Chicago (Item No. 11). As ous recommended in a file that had been circulated to the Board, unanim al Bank of aP.P.XaY211 was given to a letter to the Michigan Avenue Nation Chicago, Chicago, Illinois, granting the bank permission to maintain the reserves required of reserve city rather than central reserve city banks. A copy of the letter is attached as Item No. U. withdrew. Messrs. Thomas, Solomon, Hexter, and Collier then Directors' day. There had been distributed to the members of the Board drafts of alternative programs for Directors' day 1960, to be held February 17 and 18, 1960. ed In commenting on the matter, Governor Shepardson referr 1)articu1ar1y to the fact that one of the alternative programs would reserve the discussion by Chairman Martin of the role of Federal Reserve directors for the afternoon portion of the program on February 18, in the directors the thought that this would help to sustain the interest of throUghout the course of the day. comments, unaniAfter discussion based on Governor Shepardson's called 131°148 agreement was expressed with the alternative schedule which for concluding the program with a review of the role of directors and all informal discussion period regarding System operations and problems. The meeting then adjourned. 2/4/60 -12recommendations Secretary's Note: Pursuant to indicontained in memoranda from appropriate today viduals concerned, Governor Shepardson following approved on behalf of the Board the actions affecting the Board's staff: innt Research and Catterton as Library Assistant, Division of Lindsay effective $3,755, Ftatistics, with basic annual salary at the rate of the date she assumes her duties. to maternity leave ---ssi___-onto work for an additional period prior 1)er111 Research and Rose C. Cassedy, Research Assistant, Division of beginning maternity before 1960, Statistics, to work through February 26, leave. A222.12I, .Ence of resignation Research and Joan D. Hosley, Statistical Assistant, Division of Statistics, effective February 1, 1960. Secretary BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 1 2/4/60 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD February 4, 1960. Board of Directors, Hempstead Bank, Hempstead, New York. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of New York, the Board of Governors has approved an extension of time until May 12, 1960, in which the Hempstead Bank, Hempstead, New York, may establish a branch on the west side of Herricks Road, 100 feet north of the intersection of Herricks Road and Hillside Avenue (unincorporated area of Herricks), Town of North Hempstead, Nassau County, New York. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS c oto**44 , fat,/ 40fr OF THE Item No. 2 2/4/60 FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. 4 ADORIEBS OFFICIAL CORRICISPONDENCIC TO THE BOARD February 4, 1960. Board of Directors, Clearfield Trust Company, Clearfield, Pennsylvania. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Philadelphia, the Board of Governors has approved an extension of time until January 26, 1961, in which Clearfield Trust Company may establish a branch at the corner of North Second and Bridge Streets, Clearfield, Pennsylvania. The establishment of this branch was authorized in a letter dated January 26, 1959. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. 44.3 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 3 2/4/60 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD February 4, 1960 Mr. Howard D. Crosse, Vice President, Federal Reserve Bank of New York, 44 York 45, New York. Dear Mr. Crosse: 7, 1959, of This refers to the application dated December letter of your in transmitted nover Bank, New York, New York, in the $280,000 De approximately 28, for permission to invest stcember;_ corporation a Company), (American °_4 of The Gallatin Company, Inc. °, t, oe rganized under the Stock Corporation Law of the State of New 2_rks which will purchase and hold all of the authorized and issued :flares of The Hanover Bank Trustee Company Limited (English Company), t2°rPoration to be organized under the laws of England to conduct a rust business in England. requested The Board of Governors is prepared to grant the Perri& to deliver shall ssion upon condition that the American Company You of copies thes within ninety days from the date of this letter, two appropriate officers of the=::11 agreement duly executed by the executed copy of such Company. . Upon receipt of a duly permission to The t, the Board will forward the requested iLa e flover Bank, with a copy to you for your information and files. the AmerioThe Board is further prepared to grant permission to in (equivalent), $280,000 the ,4,a11,Company to invest approximately will investment such for Permission be 4''ocx of the English Company. 4-ncluded in the letter to The Hanover Bank. agreement executed on Please have two copies of the enclosed and of The Gallatin Company, Inc. by its appropriate officers Governors. e Lrd the original executed copy thereof to the Board of Th' for the records of ancl f the agreement should be retained 0117 : the IOthere behal Very truly yours, ;C:1 / 12Z Kenneth A. Kenyon, Assistant Secretary. 4C1°811res 444 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 4 2/4/60 WASHINGTON 25. D. C. AODRESS OFFICIAL CORRESPONDENCE TO THE BOARD February 4, 1960. Board of Directors, State Bank of Hawley, Hawley, Minnesota. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Minneapolis, the Board of Governors Of the Federal Reserve System extends until June 14, 1960, the time within which State Bank of Hawley may accomplish termination of its membership in the Federal Reserve System Wider the original authorization contained in the Board's letter of July 27, 1959. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 5 2/4/60 WASHINGTON 25. D. C. NOCNCIE ADORERS OFFICIAL COARKIBPO TO THC BOARD February 4, 1960. Board of Directors, Community Bank, Steelville, Missouri, Steelville, Missouri. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of St. Louis, the Board of Governors approves, under the provisions, of Section 214A of the Federal Reserve Act, the investment by Cortnunity Bank, Steelville, Missouri, Steelville, Missouri, of $48,535 for the purpose of constructing new bank premises. It is understood that bank premises presently in use are to be sold and the money received from such sale applied to the book value of bank premises. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 6 2/4/60 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD February 4, 1960. Comptroller of the Currency, Treasury Department, Washington 25, D. C. Attention Mr. Hollis S. Haggard, Chief National Bank Examiner. Dear Mr. Comptroller: Reference is made to a letter from your office dated July 14, 1959, enclosing copies of an application to organize a national bank at White Plains, New York, and requesting a recommendation as to whether or not the application should be approved. A report of investigation of the application made by an examiner for the Federal Reserve Bank of New York indicates that the proposed capital structure would be adequate for the projected volume and character of business. However, prospects for future earnings are not satisentirely favorable, management cannot be considered this factory in view of the lack of strong leadership in onal highly competitive location, and the need for an additi time. bank has not been sufficiently established at this justified Accordingly, the Board of Governors does not feel in recommending approval of the application. The Board's Division of Examinations will be glad to discuss any aspects of this case with representatives of your office if you so desire. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. 40Crttittr6 4 e ih,0 411 BOARD OF GOVERNORS OF THE 0019,,,*4 Item No. 7 2/14-160 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. ADDREBB OFFICIAL CORREBPONDENCC TO THE BOARD It) % "44401.° February 4, 1960. Comptroller of the Currency, Treasury Department, Washington 25, D. C. Attention Mr. C. C. Fleming, Deputy Comptroller of the Currency. Dear Mr. Comptroller: Reference is made to a letter from your office dated Na7ember 25, 1959, enclosing copies of an application to organize a national bank at Cut Bank, Montana, and requesting a recommendation as to whether or not the application should be approved. Information contained in a report of investigation of this application made by an examiner for the Federal Reserve Bank of Minneapolis indicates generally satisfactory findings with respect to the factors usually considered in connection with such proposals. Accordingly, the Board of Governors recommends favorable consideration of the application. The Board's Division of Examinations will be glad to dlscuss any aspects of this case with representatives of your c4rice if you so desire. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. 44S BOARD OF GOVERNORS 440**,1,4 2okN OF THE FEDERAL RESERVE SYSTEM 00 4 0 Item No. 8 2/4/60 WASHINGTON 25, D. C. 6 4 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD 0 Y:'`t EVA ip February 4, 1960. . Alfred Hayes, President, l'ederal Reserve Bank of New York, New York 45, New York. Deer Mr. Hayes: 1960, This is to acknowledge your letter of January 22, rd egaring the granting of a leave of absence with pay to Mr. Charles A. time ancrombs,for a period of approximately six weeks plus travel conferences, and to such other time as may be required for meetings enable him to assist Mr. Sproul during his participation in a 5s4on to India and Pakistan. this The Board of Governors interposes no objection to leave of absence for Mr. Coombs. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM rif Item No. 9 2/4/60 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD net/ February 4, 1960. Mr. William H. Braun, Jr., Secretary, Federal Reserve Bank of New York, New York 45, New York. tear Mr. Braun: 1960, This is to acknowledge your letter of January 22, Whiter ton.. pay with absence agarding the granting of a leave of : . 1:,Sedwitz for a period of up to two months plus travel time to proSalvador. vIlle advisory assistance requested by the Central Bank of El of leave The Board of Governors interposes no objection to this absence for Mr. Sedwitz. Very truly yours (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE F't Item No. 10 2/4/60 FEDERAL RESERVE SYSTEM % WASHINGTON 25. D. C. !:1 , Cktt CORRESPONDENCE ADDRESS OFFICIAL TO THE BOARD V44, tiSt -4444** February 4, 1960. . 9.9AEEIEILEILLia Mr. Raymond W. Hall, Chairman of the Board, Federal Reserve Bank of Kansas City, Kansas City 6, Missouri. Dear Mr. Hall: The Board of Governors approves the appointment of at L. Mr. F. Mills as the officer in charge of bank examinations the Federal Reserve Bank of Kansas City with the title of Vice President, effective January 14, 1960, in accordance with the action taken by your Board of Directors as reported in your letter of January 19, 1960. of The Board' of Governors also approves the payment of Bank salaries to the following officers of the Federal Reserve 1960, 31, Kansas City for the period January 14 through December -', the rates indicated, which are the rates fixed by your Board of 1) ! lrectors as reported in your letter of January 19, 1960: Name L. F. Mills C. A. Cravens George D. Royer, Jr. Title Vice President Vice President Chief Examiner Annual Salary $15,100 12,600 12,000 Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. 451 BOARD OF GOVERNORS OF THE 40 4 "4 "40 % .4 * Yj itIi not A* FEDERAL RESERVE SYSTEM Item No. 11 2/4/60 WASHINGTON 25, 0. C. '4 0 DENCE ADDRESS OFFICIAL CORRESPON TO THE BOARD VA304 / \'&:' 't't,44•4* February 4, 1960. Board of Directors, Michigan Avenue National Bank of Chicago, Chicago, Illinois. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Chicago, the Board of Governors, acting under the provisions of Section 19 of the Federal Reserve Act, grants Chicago, Permission to the Michigan Avenue National Bank of Chicago, are as s Illinois, to maintain the same reserves against deposit ve effecti l'equired to be maintained by banks in reserve cities, 141-th the first weekly reserve computation period beginning after the date of this letter. Your attention is called to the fact that such perMission is subject to revocation by the Board of Governors. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary.
@FedFRASER