Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, January 27, 1958, Volume 45, Part 1

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Minutes for January 27, 1958

To:

Mambers of the Board

From:

Office of the Secretary

Attached is a copy of the minutes of the
s of the Federal Reserve System on
Governor
of
Board
date.
above
the
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
it will be appreciated if you will
minutes,
to the
y's Office. Otherwise, if you
Secretar
the
advise
meeting, please initial in colthe
at
were present
that you approve the minutes.
indicate
to
umn A below
please initial in column B
present,
not
were
If you
have seen the minutes.
you
that
indicate
below to

Chm. Martin
Gov. Szymczak
Gov. Vardaman 1/ Gov. Mills
Gov. Robertson
Gov. Balderston

z

Gov. Shepardson
1/ In accordance with Governor Shepardson's memorandum of March 8, 1957, these minutes are not being
sent to Governor Vardaman for initial.




Minutes of the Board of Governors of the Federal Reserve System
on Monday, January
PRESENT:

27,

Mr.
Mr.
Mr.
Mr.
Mr.

1958. The Board met in the Board Room at 10:00 a.m.

Martin, Chairman
Szymczak
Mills
Robertson
Shepardson
Mr.
Hr.
Mr.
Mr.
Mr.

Carpenter, Secretary
Sherman, Assistant Secretary
Kenyon, Assistant Secretary
Riefler, Assistant to the Chairman
Thomas, Economic Adviser to the Board

Messrs. Marget, Furth, Hersey, Sammons,
Bangs, Reynolds, and Wood of the
Division of International Finance
Messrs. Young, Garfield, Noyes, Koch,
Williams, Dembitz, Brill, Eckert,
Jones, Miller, Weiner, Altmann,
Trueblood, Wernick, and Wood of the
Division of Research and Statistics
Economic review.

The review of significant international trade

and economic developments by the Division of International Finance
indicated that although the outlook in certain foreign countries might
not be very promising, it mould be too strong a statement to say that

the foreign economic situation in general seemed likely to exert a
seriously depressing influence on the economy of the United States. In
tact, if the level of European activity continued to hold up and total
dollar payments from the United States did not fall drastically this
ear, it might well develop that the larger part of this country's export
decline had already been experienced. In this connection, it was noted
that thus far the level of United States imports had been quite stable.




1/27/58

-2-

To summarize, while it did not appear that developments abroad were
likely to provide any substantial lift to the domestic economy in the
near future, neither did it seem likely that they would push the economy
much below the level that would prevail on the basis of domestic developments alone.
The review of business and financial developments within the
United States which was given by the Division of Research and Statistics
confirmed a continuation of the downward trend in most important economic
indicators through the end of 1957, with the prospect of further declines
in those indices for the month of January.
At the conclusion of the economic review all of the members of
the staff except Messrs. Carpenter and Kenyon withdrew from the meeting.
Items circulated to the Board. The following items, which had
been circulated to the members of the Board and copies of which are
attached to these minutes under the respective item numbers indicated,
were approved unanimously:
Item No.
Letter to Lawrence Savings and Trust Company, New
Castle, Pennsylvania, apprdving the establishment of
a branch in the Shenango Plaza Shopping Center. (For
transmittal through the Federal Reserve Bank of Cleveland)
Letter to The First
PanY, Philadelphia,
Illent of a branch at
through
the Federal




Pennsylvania Banking and Trust ComPennsylvania, approving the establish5536 Uayne Avenue. (For transmittal
Reserve Bank of Philadelphia)

1

295
1/27/58
Item No.
Letter to the Federal Reserve Bank of Kansas City approving the payment of salaries to four officers of that Bank,
Including one officer whose title has been changed and
three new officers.

3

Letter to the Federal Reserve Bank of Atlanta approving
the payment of salary to a newly appointed officer of
that Bank.

L.

The meeting then adjourned.

Secretary's Notes: During the day, the
Federal Reserve Banks of Boston and Atlanta
advised that their directors had established, subject to the approval of the
Board of Governors, a rate of 2-3/4 per
cent on discounts and advances under sections 13 and 13a, along with appropriate
rates on other discounts and advances.
Pursuant to the authority given by the
Board of Governors on January 23, 1958, the
Secretary notified the Boston and Atlanta
Banks that the Board approved for them,
effective January 28, 1958, rates as follows:
On discounts for and advances to member banks under sections 13 and 13a -- 2-3/4 per cent;
On advances to member banks under section 10(b) -- 3-1/4
per cent;
On advances to individuals, partnerships, and corporations other than member banks under the last paragraph
of section 13 -- for the Federal Reserve Bank of Boston
3-3/4 per cent and for the Federal Reserve Bank of
Atlanta L. per cent;
On advances direct to industrial or commercial businesses
under section 131), including advances made in participation with financing institutions -- for the Federal Reserve
Bank of Boston a range of from 3-1/2 to 6 per cent and for
the Federal Reserve Bank of Atlanta a range of from 3 to
5-1/2 per cent;




2.
1/27/58
Without change, the other rates in the Banks' existing
schedules.




All Federal Reserve Banks and Branches
advised by telegram of the approval of
rates: press statements were issued in
usual form: and arrangements were made
publication of a notice in the Federal

were
these
the
for
Register.

Governor Shepardson today approved on behalf
of the Board letters to the Federal Reserve
Banks of Boston and New York approving the
appointments of Richard Joseph Matulis and
Charles A. Burleson, Jr., as assistant examiners at the respective Banks. Copies of the
letters are attached hereto as Items 5 and 6.

BOARD OF GOVERNORS
OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.

Item No. 1
1/27/58

ADDRESS orriciAL CORRESPONDENCE
TO THE BOARD

January 27, 1958

Board of Directors,
Lawrence Savings and Trust Company,
New Castle, Pennsylvania.
Gentlemen:
Pursuant to your request submitted through the
Federal Reserve Bank of Cleveland, the Board of Governors
Of the Federal Reserve System approves the establishment
of a branch on State Route No. 88 in the Shenango Plaza
Shopping Center, Shenango Township, Pennsylvania, by
Lawrence Savings and Trust Company, New Castle, Pennsylvania,
provided the branch is established within one year from the date
Of this letter and the approval of the State authorities is
in effect as of the date of the establishment of the branch.




Very truly yours,
(Signed) Merritt Sherman

Merritt Sherman,
Assistant Secretary.

2R

BOARD OF GOVERNORS
OF THE

FEDERAL RESERVE SYSTEM

Item No. 2
1727/58

WASHINGTON 25. O. C.
AOOR

orrociAL caFtwesporgnENct
TO TN( BOAR°

January 27$ 19%

Board of Directors,
The First Pennsylvania Banking
and Trust Company,
Philadelphia, Pennsylvania.
Gentlemen:
Pursuant to your request submitted through the
Federal Reserve Bank of Philadelphia, the Board of
Governors of the Federal Reserve System approves the establishment of a branch at 5536 Wayne Avenue, Philadelphia,
Pennsylvania, by The First Pennsylvania Banking and Trust
Company, Philadelphia, Pennsylvania, provided the branch is
established within one year from the date of this letter,
and the approval of the State authorities is in effect as
of the date it is established.




Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Assistant Secretary.

BOARD OF GOVERNORS
Or THE

Item No. 3

FEDERAL RESERVE SYSTEM

1/27/58

WASHINGTON 25, D. C.

AD1RESS OFFICIAL CORRESPONDENCE
TO THE BOARD

January 27, 1958
Personal and Confidential
Mr. H. G. Leedy, President,
Federal Reserve Bank of Kansas City,
Kansas City 6, Missouri.
Dear Mr. Leedy:
The Board of Governors approves the payment of
salaries to the following officers of the Federal Reserve
Bank of Kansas City for the period January 9, 1958 through
December 31, 1958, at the rates indicated, which are the
rates fixed by your Board of Directors as reported in
your letter of January 15, 1958:

Name
E. U. Sherman
Delmas C. Cawthorne
Raymond J. Doll
Wilbur T. Billington




Title
Vice President
Financial Economist
Agricultural Economist
Industrial Economist
Very truly yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.

Annual
Salary
$12,500
13,680
13,560
11,160

BOARD OF GOVERNORS
0**1

OF THE

FEDERAL RESERVE SYSTEM

Item No.

L.

1/27/58

WASHINGTON 25. D. C.

ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

January 27, 1958

CONFIDENTIAL (FR)
Mr. Walter M. Mitchell, Chairman,
Federal Reserve Bank of Atlanta,
Atlanta 3, Georgia.
Dear Mr. Mitchell:
The Board of Governors approves the payment of
salary, effective immediately through December 31, 1958,
to the following newly appointed officer of the Federal
Reserve Bank of Atlanta, at the rate indicated, which is
the rate fixed by the Board of Directors as reported in
Mr. Pattersonls letter of January 14, 1958:
Annual
Salary
Title
Name
Thomas R. Atkinson




Economic Adviser to
the President

$11,000

Very truly yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.

301
BOARD OF GOVERNORS
OF THE

FEDERAL RESERVE SYSTEM

Item No.

5

1/27/58

WASHINGTON 25. D. C.

ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

January 27, 1958

Mr. Benjamin F. Groot,
Vice President,
Federal Reserve Bank of Boston,
Boston 6, Massachusetts.
Dear Mr. Groot:
In accordance with the request contained in
your letter of January 22, 1958, the Board approves the
appointment of Richard Joseph Matulis as an assistant
examiner for the Federal Reserve Bank of Boston.
Please advise as to the date upon which the
appointment is made effective.




Very truly yours,
(Signed) Merritt Sherman

Merritt Sherman,
Assistant Secretary.

3 *BOARD OF GOVERNORS
OF THE

FEDERAL RESERVE SYSTEM

Item No.

6

1/27/58

WASHINGTON 25. D. C.

ADDRESS OFFICIAL CORRI:SPONDENCE
TO THE BOARD

January 27, 1956

Mr. R. B. Elltse, Vice President,
Federal Reserve Bank of New York,
New York 45, New York.
Dear Mr. Ulltse:
In accordance with the request contained in
your letter of January 22, 1958, the Board approves the
appointment of Charles A. Burleson, Jr., as an assistant
examiner for the Federal Reserve Bank of New York.
Please advise the Board if the appointment is
not made effective February 10, 1958, as planned.




Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Assistant Secretary.