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Minutes for : From: July 12, 1963 Members of the Board 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 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 Friday, July 12, 1963. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Martin, Chairman Balderston, Vice Chairman Mills Robertson Shepardson Sherman, Secretary Kenyon, Assistant Secretary Fauver, Assistant to the Board Koch, Associate Director, Division of Research and Statistics Mr. Holland, Adviser, Division of Research and Statistics Adviser, Division of International Furth, Mr. Finance Mr. Sammons, Adviser, Division of International Finance Mr. Katz, Associate Adviser, Division of International Finance , Assistant to the Secretary Landry Mr. , Chief, Banking Section, Division Eckert Mr. of Research and Statistics Mr. Yager, Chief, Government Finance Section, Division of Research and Statistics Mr. Goldstein, Economist, Division of International Finance Mr. Mr. Mr. Mr. Money market review. There were distributed tables relating to auctions of one-year Treasury bills in recent years and monetary with a chart showing developments in the preceding four weeks along ties on selected comparative yield curves for U. S. Government securi recent dates. for Mr. Yager reported on developments in the market Eckert reviewed the Government securities, following which Mr. banking situation. market. Mr. Goldstein then reported on the foreign exchange 2274 -2- 7/12/63 All members of the staff except Messrs. Sherman, Kenyon, Fauver, and Landry then withdrew and the following entered the room: Mr. Mr. Mr. Mr. Farrell, Director, Division of Bank Operations Solomon, Director, Division of Examinations Hexter, Assistant General Counsel McClintock, Supervisory Review Examiner, Division of Examinations Items circulated to the Board. The following items, copies of which are attached hereto under the respective item numbers indicated, were approved unanimously: Item No. Letter to the Federal Reserve Bank of New York approving an upward adjustment in the minimum of Grade I of the clerical salary structure applicable to employees at the Buffalo Branch. 1 Letter to the Federal Reserve Bank of Richmond approving an upward adjustment in the minimum of Grade I of the clerical salary structures applicable to employees at the head office and branches. 2 Letter to Provident Tradesmens Bank and Trust Company, Philadelphia, Pennsylvania, approving an extension of time to establish a branch in the Garrett Road Shopping Center, Upper Darby Township. 3 Letter to Bank of Idaho, Boise, Idaho, approving the establishment of a branch in Moscow. Letter to Boulevard National Bank, Denver, Colorado, granting its request for permission to maintain reduced reserves. 5 Letter to Peoples State Bank, Artesia, New Mexico, approving an investment in bank premises. 6 Mr. Farrell then withdrew from the meeting. Report on competitive factors (Norwich-Margaretville, New York). There had been distributed a draft of report to the 2275 7/12/63 -3- Comptroller of the Currency on the competitive factors involved in the Proposed merger of The Peoples National Bank of Margaretville, Margaretville, New York, into The National Bank and Trust Company of Norwich, Norwich, New York. Following discussion, the report was approved for transmission to the Comptroller of the Currency. The conclusion read as follows: The proposed merger of National Bank and Trust Company, Norwich, New York, and Peoples National Bank, Margaretville, New York, would bring to the latter community a bank better able to provide banking services which are not now offered by Peoples National. Consummation of the proposal would increase competition without substantial effect on the operations of other banks in the area. Report on competitive factors (Englewood -Closter, New Jersey). There had been distributed a draft of report to the Comptroller of the Currency on the competitive factors involved in a proposed consolidation Of National County Bank of Closter, Closter, New Jersey, into Citizens National Bank of Englewood, Englewood, New Jersey. In discussion Governor Robertson cited reasons for feeling that the information upon which the report was based was not adequate to permit reaching a considered judgment on the competitive situation. He felt, however, that more complete information might have disclosed the desirability of a more adverse report on competitive factors. Gover- nor mills indicated that he shared this concern and, on the basis of his reading of the available information, went on to suggest a change in the wording of the conclusion. After noting that he concurred with Governor Mills' suggestion, Governor Robertson returned to the question 22; 7/12/63 of possible improvement in the quality of statistical information provided as the basis for reports on competitive factors to the other two Federal bank supervisory agencies. He did not believe that provision of pertinent information was the sole responsibility of applicant banks or that information in the applications should be relied on exclusively. On a question from Governor Shepardson, it was noted that the Bank Merger Act of 1960 was silent as to the sources of information to be used by the three Federal bank supervisory agencies in making competitive factor reports. It was also noted that the 30-day time limit for submitting reports on competitive factors imposed a practical restriction on the extent of investigations by the Reserve Banks. At the conclusion of the discussion, it was understood that the problem referred to by Governor Robertson would be borne in mind and studied further by the Division of Examinations. The report was then approved for transmission to the Comptroller of the Currency in a form containing the following conclusion: While consummation of the proposal would eliminate the moderate competition existing between Citizens National Bank of Englewood and National County Bank of Closter, there would remain readily accessible to residents of Bergen County a wide variety of alternative sources for bank services and credit. The proposed consolidation would result in an increase in concentration of bank resources in the general area although the consolidated bank would not hold an unduly large percentage of county deposits. All members of the staff with the exception of Mr. Sherman then withdrew. Payment of cost of dinner. Chairman Martin reported that President Hayes of the Federal Reserve Bank of New York had discussed 22,0, -5- 7/12/63 with him the question of payment by the Bank of the cost of a dinner, to be attended by officers of the Bank, that was proposed to be given in honor of certain officers scheduled to retire from the Bank's service.. After consideration of this question in the light of the circumstances involved and precedent cases, it was the consensus that payment for the dinner by the Reserve Bank on behalf of the officers attending it would involve an expenditure of Reserve Bank funds of questionable appropriateness, and it was understood that Chairman Martin d would discuss the matter further with President Hayes against the backgroun of this consensus. The meeting then adjourned. Secretary's Note: Governor Shepardson today approved on behalf of the Board the following items: Letter to the Federal Reserve Bank of New York (attached Item No. 7) approving the appointment of 17 employees as examiners. Letter to the Federal Reserve Bank of Atlanta (attached Item No. 8) approving the designation of Richard A. Sanders as special examiner. Letter to the Federal Reserve Bank of Dallas (attached Item No. 9) approving the designation of James F. Williamson as special assistant examiner. Memoranda from appropriate individuals concerned recommending the following actions relating to the Board's staff: Appointment Neva Grace Van Peski as Economist, Division of Research and Statistics, with basic annual salary at the rate of $8,310, effective the date of entrance upon duty. 2278 7/12/63 Transfer Kathleen Alexander, from the position of Clerk-Stenographer in the Division of Personnel Administration to the position of ClerkStenographer in the Division of International Finance, with no change in basic annual salary at the rate of $4,110, effective July 21, 1963. Salary increase Janet E. Innocenti, Statistical Clerk, Division of Bank Operations, from $3,925 to $4,250 per annum effective July 21 1963. (-; Secretary, 22'7 Item No. 1 BOARD OF GOVERNORS 7/12/63 OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. AOCRESS OFFICIAL CORRESPONCENCE. THE OCIAKI0 TO July 12, 1963 Mr. H. A. Bilby, Vice President, Federal Reserve Bank of New York, New York )151 New York. Dear Mr. Bilby: 28, 1963, the As requested in your letter of June -June 27, an upward Board of Governors approves, effective of Grade .1 of the adjustment to $2,600 in the minimum range employees at the clerical salary structure applicable to Buffalo Branch. Very truly yours, (Signed) Merritt Sherman Mrritt Sherman, incretary. ‘,28( BOARD OF GOVERNORS Item No. 2 OF THE 7/12/63 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD July 12, 1963 Mr. Aubrey N. Heflin, Arst Vice President, Federal Reserve Bank of Richmond, Richmond 13, Virginia. Dear Mr. Heflin: As requested in your letter of July 1, 1963, the approves upward adjustments to $2,600 Governors Board of of Grade I of the clerical salary range in the minimum to employees at the three offices of applicable structures Richmond District, effective August 23 for the Richmond the and Charlotte ofrices, and September 2 for the Baltimore office. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. 2281 BOARD OF GOVERNORS •, tj ' 'r .0• Item NO. OF THE 3 7/12/63 FEDERAL RESERVE SYSTEM WASHINGTON 25. 0. C. w• ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD '- • (L4 *.'it.RES-'.• July 121 1963 Board of Directors, Provident Tradesmens Bank and Trust Company, Philadelphia, Pennsylvania. Gentlemen: The Board of Governors of the Federal Reserve System extends to January 24, 1964, the time within which Provident Tradesmens Bank and Trust Company may establish a branch in the Garrett Road Shopping Center, Garrett Road near Sherbrook Boulevard, Upper Darby Township, Delaware County, Pennsylvania. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. Item No. 4 7/12/63 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD July 12, 1963 Board of Directors, Bank of Idaho, Boise, Idaho. Gentlemen: The Board of Governors of the Federal Reserve System approves the establishment of a branch by Bank of Idaho, Boise, Idaho, in the downtown business district of Moscow, Idaho, provided the branch is established within six months from the date of this letter. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. (The letter to the Reserve Bank stated that the Board also had approved a six-month extension of the period allowed to establish the branch; and that if an extension should be requested, the procedure prescribed in the Board's letter of November 9, 1962 (S-1846), should be followed.) , BOARD OF GOVERNORS Item No. OF THE 5 7/12/63 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. ' ADDRESS OFFItIAL CORRESPONDENCE TO THE BOARD July 12, 1963. Board of Directors, Boulevard National Bank, Denver, Colorado. Gentlemen: With reference to your request submitted through the Federal Reserve Bank of Kansas City, the Board of Governors, acting under the provisions of Section 19 of the Federal Reserve Act, grants permission to the Boulevard National Bank to maintain the same reserves against deposits as are required to be maintained by nonreserve city banks, effective with the first biweekly 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) Merritt Sherman Merritt Sherman, Secretary. 22914 Item No. 6 7/12/63 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD July 12, 1963 Board of Directors, Peoples State Bank, Artesia, New Mexico. Gentlemen: The Board of Governors of the Federal Reserve System approves, under the provisions of Section 24A of the Federal Reserve Act, an additional investment of $86,616 in bank premises by Peoples State Bank, Artesia, New Mexico, for the purpose of remodeling banking quarters. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. :;# )1 , A. ,Ail. 10 BOARD OF GOVERNORS Item No. 7/12/63 OF THE 7 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE *WARD July 12, 1963 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 July 2, 1963, the Board approves the appointment of the following employees, at present assistant examiners, as examiners for the Federal Reserve Bank of New York, effective June 27, 1963: Edward A. Brasseur Edwin L. Breves Oliver W. Cordz Joseph J. DePaolo William L. Healy, Jr. Vincent J. Kulda Walter H. Ludlum John S. McNierney Martin R. Stravitz William Milusich Thomas M. Murphy Bernard G. Nelson Emil J. Paul Edwin W. Pfaff Frank S. Raphael Robert E. Spaulding Harry I. Stevens Please advise the salary rates. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS Item No. 7/12/63 OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD Jay 12, 1963 Mr. J. E. Denmark, Vice President, Pederal Reserve Bank of Atlanta, Atlanta 3, Georgia. Dear Mr. Denmark: In accordance with the request contained in your letter ?I July 5, 1963, the Board approves the designation of Richard A. 6arlders as a special examiner for the Federal Reserve Bank of Atlanta. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. 2287 BOARD OF GOVERNORS OF THE Item No FEDERAL RESERVE SYSTEM 7/12/63 9 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD Jay 12, 1963 14r. Thomas R. Sullivan, Vice President, Pederal Reserve Bank of Dallas, Dallas 2, Texas. Dear 14r. Sullivan: In accordance with the request contained in your letter July 2, 1963, the Board approves the designation of James F. !71l1iamson as a special assistant examiner for the Federal Reserve lank of Dallas for the purpose of participating in examinations of tate member banks. The authorization heretofore given your bank to aPPoint Mr. Williamson an assistant examiner is hereby canceled. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary.
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