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Minutes of actions taken by the Board of Governors of the
1-ral Reserve System on Wednesday, January 30, 1972.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Martin, Chairman
Szymczak
Norton
Powell
Mr. Carpenter, Secretary
Mr. Cherman, Assistant Secretary
Mr. Kenyon, Assistant Secretary
Minutes of actions taken by the Board of Governors of the
l'Eral Reserve System on January 29, 19)2, were approved unenimoufay.
1:emorendum dated January 24, 1972, from Mr. Boothe, Assistant
tire
ct°r, Divipion of Selective Credit Rery3ation, recoirrnendinc tl-at
ginia L. leaman, Clerk-Stonocrapher in the Division of Revearch and
Stat4-stics,c tranrferred to the Dtvision of Se]ecti-‘e Credit Ret-ulation.
as Secretary to Mr. Swan, Acting issistont Director, with an inel'ea-Be in her basic salary from ,$3,65.5 to *3,785 per annum, effective
Of the date she
assumes her new duties. The memorandum also stated
that
the DIvision of Research and Statistics was agreeable to this
traalBfer.
Approved unanimously.
Letter to Mr. W 1
- ltse, vice President, Federal Reserve Bank of New
readIng as follows:
"In accordance with the request contained in
Ir letter of January 24, 1972, the Board approves
desicnation of kalter H. Hill as a special assistant
(e,'Illiner for the Federal Reserve Bunk of New York."
,
T
Approved unanimously.
170
1/30/52
-2Letter to Mr. Peterson, Vice Presidea, Federal Reserve Bank of
4. Louis, reading as follows:
"In accordance with the request contained in your
letter of Jynuary 24, 1952, the Board approves the designation of Robert W. Page as a special assistant examiner
and the appointment of Francis M. Miller, at present a
special assistant examiner, as an assistant examiner for
the Federal Reserve Bank of St. Louis. Please advise us
Of the date upon which the appointment becomes effective."
Approved unanimously.
Letter to Mr. Noppang, First Vice President, Federal Reserve Bank
Of
sac City, reading as follows:
In accordance with thc request contlined in your
3 etter of January 24, 1952, the Board of Governors aproves the payment of salaries to Miss Marjorie Hansen,
Iranscript Clerk, Accounting Department, Head Office, and
to Mr. John R. Enow, Accounting Clerk, Won-Cash Collection
1)elertment, Denver Branch, at the rates of *41 164. and 4;4,02C,
l'espectively, which exceed the maximum established for the
grade in which these positions are classified."
Approved unanimously.
Letter to Mr. Leedy, President, Federal Reserve Bank of Kansas City,
114 ing as follows:
"Reference is made to your letter of amuary 22, 1952,
advising of the various actions taken by the Board of Directors at its meeting on January 17, with respect to the
apPeintment of, and payment of salaries to, the officers of
the Federal Reserve Bank of Kansas City and its branches.
In connection with the changes made in the official staff,
the Board of Governors approves the payment of salaries to
the following officers for the period January 18, 1952,
may 31, 1952, at the rates indicated, which are
the
6he rates fixed by the Board of Directors as reported in
Your letter:
"
s
— • P*
4
-
1/30/52
-3-
ilnual
f‘,1 r-L
- 14'W tIU
Title
*10,44,0
C. E. Sandy
-Vice Lresident
12,000
Clarence I,. Tow
-Vice i'rcsident
G. A. Gtetory
10,000
Cashier
E. D. Vanderhoof
7,600
Assistant Vice President
J. S. ilandford
7,116
Assistant Cashier
"The salary for Mr. Handford is approved subject to
cleLxance with the appropriate salary board.
"Ac you were advised in the Board's letter of March
29, 1951, the payment of salarie„ to Messrs. Phillips and
Pipkin was approved by the Board of Governors at the rates
of *11,000 and :01 13,000 per annum, respectively, for the
period ending June 30, 1952."
Approved unanimously.
Letter to Mr. Erickson, President, Federal Reserve Bank of Boston,
re6AllaC az follows:
"Reference is made to your letter of January U. requesting the Board of Governors to approve an increase in
the salary structure of the Federal Reserve Bank of Boston.
"Subject to the proper clearance with the Wage and
Salary Stabilization Boards, the Board of Governors approves
the following minimum and maximum salaries for the respective grades, effective January 11, 1952:
Maximum Salary
Minimum Salary
Grade
:2,360
;1,620
(
i
1
2,340
1,740
2
,
2,20
1,860
)
2,700
1,980
4
2,940
2,160
L)
3,2)40
2,)A00
6
2,640
7
3,950
2,940
8
3,360
9
f),loo
3,800
10
4,250
11
4,eo0
6,500
12
5,400
13
7,300
3,30e
6,15o
14
9,600
7,100
15
10,00
8,100
16
"The Board approves the payment of salaries to the
employees, other than officers, within the limits specified
for the grades in which the positionsof the respective emPloyees are classified. It is assumed that all employees
whose salaries are below the minimum of their grades as a
result of the structure increase will be brought within the
appropriate range as soon as practicable."
Approved unanimously.
Letter to the Honorable John S. Wood, Chairman, Committee on Unerican Activities, House of Representatives, Washington, D. C., reading
'
e c follows:
"Mr. Rodney H. Van Devanter and Mr. Harry D. Stone,
both of the Division of Personnel Administration of the
Board of Governors, have been designated as representatives
of the Board of Governors in investigating the loyalty of
Board employees.
"It will be appreciated, therefore, if you will peraccess to your Committee Files by Messrs. Van Devanter
and Stone.
"This designation has been made for the year 1952 and
14111 be terminated as of the close of business, December
31, 1952.
"imy prior designation should be cancelled, and Messrs.
Van Devanter and Stone will be furnished with credentials
vith which they can identify themselves."
Approved unanimously.
Letter to Mr. Stetzelberger, Vice President, Federal Reserve Bank
4-5 e]and, reading as follows:
"Reference is made to your letter of January 21, 195L,
enclosing a certified copy of a resolution adopted by the
Board of Directors or the Bank of Elizabeth, Elizabeth,
Pennsylvania, signifying its intention to withdraw from memb9rship in the Federal Reserve System and requesting waiver
Of the six months' notice or such withdrawal.
1/30/52
-5-
requested, the Board of Governors waives the requirement of six months' notice. Accordingly, upon surrender of the Federal Reserve Bank stock issued to the
Bank of Elizabeth, Elizabeth, Pennsylvania, you are authorized to cancel such stock and make appropriate refund there°fl. It is assumed that the bank will apply for continuance
Of deposit insurance after withdrawal, in which event it
Will have four months after the date of this letter within
which to accomplish termination of its membership (F.R.L.F.
"It is noted that the bank is withdrawing because it
does not have the $500,000 minimum capital stock required by
iederal Statute for the establishment or a branch outside of
the municipal limits of Elizabeth.
"Please advise when cancellation is effected and refund
iS made. The certificate of membership issued to the bank
chould be obtained, if possible, and forwarded to the Board.
The State banking authorities should be advised of the bank'
proposed withdrawal from membership and the date such withdrawal becomes effective."
Approved unanimously.
Letter to Miss E. F. Downey, Secretary, Federal Deposit Insurance
C°1Toration, Washington, D. C., reading as follows:
"Reference is made to your letter of January 17, 1952,
concerning the application of the Peoples Bank, cience Hill,
4entucky, for continuance of insurance after withdrawal from
ille mbership in the Federal Reserve System.
"The last report of examination of the Peoples Bank as of
January 6, 1951, reflected a condition considered as only fair.
The bank was overextended with a loan account much larger than
averaL,e in which the totals of classified and past due 2:tler
were mL;urded as eYcessive. The Federal Reserve Bank called
he attention of the subject bank's directors to its olierarled status and the necessity of closer supervision of the
1°8/1 portfolio.
"The management was not considered strong and the princi39.1 orerating officer appeared mediocre. However, it was reported
'that the management was to be strengthened as the result of
!
l hences in ownership in December 1950. Uorking control has
ueen acquired by interests closely allied with the First National
4/30/52
-6-
Bank of lomerset, Kentucky, and two officers and a director
of that bank were elected to the board of the subject bank.
The new directors are said to be experienced bankers and
well regarded in the community.
"No other corrective programs have been urged upon the
bank, or agreed to by it, in connection with which the Board
Of Governors would consider it desirable to incorporate conditions with respect to continuance of insurance."
4proved unanimously, together
with the following letter to Mr.
Stetzelberger, Vice President of
the Federal Reserve Bank of Cleveland:
"Reference is made to your letter of January 21, 1952,
enclosing a certified copy of a resolution adopted by the
Board of Directors of the Peoples Bank, Science Hill, Ken' 1-1c17', signifying its intention to withdraw from membership
111 the Federal Reserve System and requesting waiver of the
slx months' notice of such withdrawal.
"It is understood that application for continuance of
I nsurE.nce has been made to the Federal Deposit Insurance Corporation and the Board of Governors waives the requirement
of six months' notice of withdrawal. Accordingly, upon surrender of the Federal Reserve Bank stock issued to the PeoPies Bank, Science Hill, Kentucky, you are authorized to
cancel such stock and make appropriate refund thereon. Under
he Provisions of the Board's letter of February 19, 1937
a.R.L.S. ,;3548)
1
the bank may accomplish the termination of
its membership at any time within four months of the date of
this letter. If a longer period is required the bank Lhould
request an e:ttension of time.
"It is noted that the bank is withdrawing because it does
not have the 4"..)n0,000 minimmi capital stock required by Federal statute for the establishment or an out-of-town branch
14 Burnside, Kentucky.
"Please advise when cancellation is effected and refund
is made. The certificate of membership issued to the bank
,,I1c)uid be obtained, if possible, and forwarded to the Board.
The
State banking authorities should be advised of the l'ank's
Proposed withdrawal from membership and the date such withdrawal becomes effective."
Memoranda dated January 2, 1952, from Mr. Chase, Solicitor,
recemmendin
for reasons stated therein that in accordance with the
ecc)rnimilklations of the Federal Reserve Banks of New York, Cleveland,
'CITIcao, respectively, the matters of Alsar, Inc., Buffalo, New
Voreman Motor Company, Pittsbur,h, Pennsylvania; Robert Green,
14)111-Ef business as Green Motor Sales ("Motor MIdwayI, Detroit
and
Leonard J. Gree
Michigan,
doing business as Magic Motors, Pontiac, Michigan,
ren'trants under Regulation W, Ccnsuxier Credit, be refeired. to the
e.1)artment of Jutice for the institution of such criminal proceedings
D
rtment rrn.,T:,ht deem appro riate.
1.pproved unanimously.
@FedFRASER