The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Minutes of actions taken by the Board of Governors of the Federal Reserve System on Friday, July 21 1954. PRESENT: Mr. Mills, Acting Chairman Mr. Robertson Mr. Carpenter, Secretary Mr. Sherman, Assistant Secretary Mr. Kenyon, Assistant Secretary Telegrams to the Federal Reserve Banks of Boston, New York, Philadelphia, Richmond, Chicago, St. Louis, and San Francisco stating that the Board approves the establishment without change by the Federal Reserve Bank of St. Louis on June 28, by the Federal Reserve Bank of San Francisco on June 301 by the Federal Reserve Banks of New York, Philadelphia, Richmond, and Chicago on July 1, and by the Federal Reserve Bank of Boston on July 2, 1954, of the rates of discount and Purchase in their existing schedules. Approved unanimously. Letter to Mr. Clifford M. Hardin, Dean of Agriculture, Michigan State College, East Lansing, Michigan, reading as follows: Your letter of June 17, 1954, addressed to Mr. Young, President of the Federal Reserve Bank of Chicago, submitting your resignation as a director of the Detroit Branch of the Bank, has been brought to the attention of the Board of Governors. In view of the fact that you are moving from the branch territory to take up your duties as Chancellor of the University of Nebraska, the Board of Governors accepts your resignation as a director of the Detroit Branch, effective June 30, 1954. Your contribution to the Federal Reserve System during your service as a director is genuinely appreciated and the Board hopes that you will retain an active interest in the welfare of the System after the termination of your official 99,1 7/2/54 connection with it. The comments contained in your letter with respect to your association with the Detroit Branch are indeed gratifying and it is the Board's sincerest wish that you will meet with every success in your new endeavor. Approved unanimously, with a copy to Mr. Young, President, Federal Reserve Bank of Chicago. Memorandum dated June 25, 1954, from the Division of Personnel Administration recommending that merit increases proposed by the respective division heads pursuant to the budgetary procedure adopted by the Board on June 12, 1951, be approved for the following employees in the amounts indicated, effective July 4, 1954: Name and title Division Increase in basic annual salary From To Office of the Secretary Zoe Gratsias, Minutes Clerk Mildred E. Pilger, Supervisor, Administrative, Subject, and FOMC Files Helen E. Cook, Review Classifier Jacquelyn Haas, File Clerk Martha L. Ware, File Clerk $3,030 $3,110 4,870 4,995 3,910 4,035 3,030 3,110 3,030 3,110 7,640 7,840 6,340 6,4o 5,940 6,1.40 Research and Statistics Milton MOBS, Economist Bernard N. Freedma Economist Peter M. Keir, Economist 995 7/2/54 Merit increases, effective July 4, 1954 (continued) Division Name and title Increase in basic annual salary From TO Research and Statistics Dorothy S. Projector, Economist A. Jane Moore, Economist Richard C. Pickering, Economist Edwin J. Swindler, Economist Theodore Flechsig, Economist Ruby S. Andrews, Editorial Clerk Irma B. Gavin, Draftsman Marjorie C. Capps, Clerk-Stenographer Athens J. Messick, Clerk-Stenographer Josephine M. Spicer, Administrative Clerk Elsie Q. Davis, Clerk $6,140 $6,340 5,185 5,310 5,310 5,435 5,185 5,310 4,580 4,705 3,785 3,910 3,785 3,910 3,415 3,495 3,575 3,655 3,255 3,335 3,190 3,270 10,200 10,400 6,140 6,340 4,580 4,705 3,030 3,110 3,030 3,110 International Finance Wendell E. Thorne, Assistant to the Director Elinor R. Harris, Economist Dorothy L. Helprin, Economist Mary J. Katinas, Clerk-Stenographer Mary C. Van Fossen, Clerk 7/2/54 Merit increases, effective July Name and title 4, 1954 (continued) Division Increase in basic annual salary From To Examinations J. C. Smith, Federal Reserve Examiner R. R. Russell, Assistant Federal Reserve Examiner C. A. Smith, Assistant Federal Reserve Examiner $10,000 $10,200 4,330 4 455 5,120 5,245 lo,400 lo,600 8,960 9,160 3,255 3,335 2,950 3,030 5,435 5,560 3,660 3,785 5,435 5,56o 3,535 3,660 3,410 3,535 2,792 2,872 Bank Operations Gerald M. Conkling, Chief, Member Bank Section John R. Farrell, Chief, Reserve Bank Budget and Expense Section Mary F. Gifford, Statistical Clerk Rita D. Brinley, Clerk-Typist Personnel Administration John H. Stetson, Personnel Technician Billie Jo Hickman, Secretary Administrative Services Mildred Tydings, Manager, Cafeteria Beverly A. Carter, Senior Mail Clerk Frances M. Callahan, Assistant Manager, Cafeteria James E. Love, Laborer Approved unanimously. 997 7/2/54 Letter to Mr. Diercks, Vice President, Federal Reserve Bank of Chicago, reading as follows: In accordance with the requests contained in your letters of June 17, 1954, the Board of Governors approves the appointments of Robert C. Burton, Elmer W. Fletcher, and Gordon L. Wold as assistant examiners for the Federal Reserve Bank of Chicago. Please advise as to the dates upon which the appointments are made effective. With reference to Mr. Fletcher's GI Home Loan, you advised on August 3, 1953, that his indebtedness at National Bank of Hyde Park in Chicago had been sold by that bank to a nonbanking corporation. In order that our records may be complete, please advise the name and address of the corporation holding the loan. Approved unanimously. Letter to Mr. Pondrom, Vice President, Federal Reserve Bank of Dallas, reading as follows: In accordance with the request contained in your apletter of June 24, 1954, the Board of Governors an as McGee proves the appointment of Charles Finby of Bank assistant examiner for the Federal Reserve the Dallas. Please advise as to the date upon which appointment is made effective. his It is noted that Mr. McGee is cosigner with in son on a note held by Citizens National Bank that the Waxahachie, Waxahachie, Texas, balance $114; and 1954; obligation will be liquidated in September g that he will not be given any assignment relatin to the national bank while the debt is outstanding. Approved unanimously. 998 -6- 7/2/54 Letter to the Board of Directors, Farmers Bank and Trust Company of Lancaster, Lancaster, Pennsylvania, reading as follows: Pursuant to your request submitted through the Federal Reserve Bank of Philadelphia, the Board of Governors approves the establishment and operation of a branch at 560 New Holland Avenue, Lancaster, Pennsylvania, by the Farmers Bank and Trust Company of Lancaster provided the branch is established within 12 months from the date of this letter. Approved unanimously,for transmittal through the Federal Reserve Bank of Philadelphia. Letter to Mr. Armistead, Vice President, Federal Reserve *Rank of Richmond, reading as follows: Reference is made to your letter of June 25, 1954, submitting the request of The Washington Loan and Trust Company, Washington, D. C., for approval, under the provisions of section 24A of the Federal Reserve Act, of an additional investment of $7,500 In bank premises for the purpose of installing a gas conversion burner in its main office building. After consideration of the information submitted, the Board concurs in your recommendation and approves the additional investment of $7,500 in bank premises with the understanding that the amount will be written off over a three-year period as proposed. Approved unanimously. Letter to the Board of Directors, Bank of Commerce and Trusts, Richmond, Virginia, reading as follows: the Pursuant to your request submitted through Govof Board the d, Richmon Federal Reserve Bank of s the ernors of the Federal Reserve System approve of corner st southea the establishment of a branch at a, d, Virgini Richmon Roseneath Road and Broad Street, 999 7/2/54 -7- by Bank of Commerce and Trusts, Richmond, Virginia, provided the branch is established within twelve months of the date of this letter. Approved unanimously, for transmittal through the Federal Reserve Bank of Richmond. Letter to Mx. Peterson, Vice President, Federal Reserve Bank of St. Louis, reading as follows: Reference is made to your letter of June 23, 1954, submitting with a favorable recommendation the request of the Elk Horn Bank and Trust Company, Arkadelphia, Arkansas, for permission under the provisions of section 24A of the Federal Reserve Act to invest not exceeding $140,000 for the purpose of constructing a new modern drive-in building on the site of its old banking premises which were almost totally destroyed by fire in late 1953. The Board has given consideration to the asset condition, management, capital structure and physical needs of the Elk Horn Bank and Trust Company and approves the investment of not to exceed $140,000 for the purpose of constructing new banking premises with the understanding that the carrying value of its old banking premises has been written down to $15,000 and an applicable new building reserve of approximately $29,000 created with the proceeds of insurance received by the bank. Please advise the bank accordingly. Approved unanimously. Letter to the Board of Directors, The Citizens State Bank of Ontonagon, Ontonagon, Michigan, reading as follows: the Pursuant to your request submitted through Federal Reserve Bank of Minneapolis, the Board of Governors approves the establishment of a branch by The Citizens State Rank of Ontonagon, Ontonagon, Michigan, at White Pine, Michigan, provided (a) prior to the establishment of the branch the bank's capital -8- 7/2/54 shall be increased to not less than $100,000 through the sale of new common stock; (b) prior formal approval of the proposed branch is obtained from the appropriate State authorities; and (c) the branch is established within six months from the date of this letter. Approved unanimously, for transmittal through the Federal Reserve Bank of Minneapolis. Letter to the Presidents of all Federal Reserve Banks reading as follows: This refers to the action taken by the Conference of Presidents at its meeting on June 21-22, 1954, approving the recommendations made by the Subcommittee on Collections and the Subcommittee of Counsel on Collections in their joint report of June 11, 1954, with respect to the collection of items drawn on or payable at or through par-remitting nonmember banks in Alaska, Hawaii, Puerto Rico, and dependencies, insulsr possessions, and parts of the United States outside the continental United States. The Board concurs in the action taken by the Conference of Presidents. Accordingly, the Board has adopted amendments to its Regulation J and Regulation G, to become effective July 15, 1954, in the form recommended in the joint report of the Subcommittee on Collections and the Subcommittee of Counsel on Collections. The Board has also designated Alaska and Hawaii as being in or of the Twelfth Federal Reserve District for the purposes of the amended Regulations, effective on and after July 15, 1954. Copies of the amendments to the Regulations, together with the designations made pursuant to the amended Regulations, are enclosed. It is contemplated that, when the Regulations are reprinted, there will be included, immediately following the new footnote in each Regulation, a statement in brackets that the Board of Governors, pursuant to such footnote, has designated Alaska and Hawaii, effective on and after July 15, 1954, as being in or of the Twelfth Federal Reserve District for the purpose of such Regulation. 1001 7/2/54 -9- The Board concurs in the proposed amendments to the uniform paragraphs of the circulars and operating to the letters of the Federal Reserve Banks relating form recollection of cash and noncash items, in the Colon commended in the report of the Subcommittee s, lections and the Subcommittee of Counsel on Collection as follows: of 1. Amend the circulars and operating letters the Federal Reserve Banks relating to the collection of cash items by inserting a footnote after the word ph (1) "district" where it first occurs in subparagra ng, headi the under raph of the first uniform parag ng readi ," items cash as ted accep be "Items which will as follows: ating For the purposes of this circular (oper " deany and letter) Alaska, Hawaii, Puerto Rico d Unite the of Dart pendency, insular possession or shall s State d Unite States outside the continental Reserve be deemed to be in or of such Federal designate." may district as the Board of Governors letters of the ting 2. Amend the circulars and opera ction of noncolle Federal Reserve Banks relating to the age in the langu cash items by changing the introductory nition of "Defi first uniform paragraph under the heading, noncash items," to read as follows: circular "As used in Regulation G and in this items' (operating letter), the term 'noncash es when means any items of the following class payable in any Federal Reserve district': 1 (operating For the purposes of this circular and any deRico letter) Alaska, Hawaii, Puerto of the part pendency, insular possession or United l nenta conti United States outside the such Fedof or in States shall be deemed to be Governors of Board eral Reserve district as the may designate." be necessary in the Certain changes will, of course, the Federal Reserve Banks language of the time schedules of ments to the Board's amend above in order to conform to the lars of the Reserve circu ction regulations and to the colle the opinion expressed with ment Banks. The Board is in agree ction time nor colle the er by the Subcommittees that neith 1002 7/2/54 the volume of items handled would appear to warrant at s this time special deferment of credit for cash item d er perio long a for banks drawn on Alaskan and Hawaiian ttee the ommi that Subc stood than two days; but it is under the light on Collections will follow developments and in ce as to eren Conf ts' iden of experience report to the Pres The fact ect. resp this the desirability of any change in in Alaska le payab icts that items received in other distr ral the Fede of ch Bran will be routed through the Seattle s item will iian Hawa Reserve Bank of San Francisco and that will Bank that of be channeled through the head office volume of such make it possible to determine readily the ection. coll items and the time required for their arrange for will It will be appreciated if your Bank ts to dmen amen the the printing of sufficient copies of of such tion ribu dist Regulations J and G and for the early ulars the circ to ts dmen amendments, together with the amen in s bank er memb all and time schedules of your Bank. to h whic to s bank r your district and also to all nonmembe ent. paym and your Bank sends Items for collection Approved unanimously, with the understanding that a notice . would be sent to the Federal Register ts to Secretary's Note: The amendmen Coland Regulation J, Check Clearing on lati lection, the amendments to Regu and G, Collection of Noncash Items, the the designations referred to in ows: foregoing letter, were as foll AMENDMENTS TO REGULATION J through the Federal In order to permit the collection ember par-remitting Reserve Banks of checks drawn on nonm itories, dependencies, banks located in such of the Terr United States outside insular possessions, and parts of the d of Governors the continental United States as the Boar amended, effective may designate, Regulation J is hereby : July 15, 1954, in the following respects ded by inserting amen is J 1. Section 3 of Regulation it first where t" tric "dis a new Footnote 1 to the word ows: foll as occurs in such section, reading Alaska, "lFor the purposes of this Regulation, lar cy, insu nden depe Hawaii, Puerto Rico and any 1003 7/2/54 -11- possession or part of the United States outside the continental United States shall be deemed to be in or of such Federal Reserve district as the Board of Governors may designate." 2. The numbering of present Footnotes 1, 21 and is changed to 2, 3, and 4, respectively. 3 OF TEE DESIGNATION OF AIASKA AND HAWAII AS BEING IN OR OF SES TWELFTH FEDERAL RESERVE DISTRICT FOR PURPO REGULATION J ed Pursuant to Footnote 1 of Regulation J, as amend has nors effective July 15, 1954, the Board of Gover taken the following action: For purposes of Regulation J, Alaska and Hawaii shall be deemed to be in or of the Twelfth Federal Reserve District, effective on and after July 15, 1954. AMENDMENTS TO REGULATION G the Federal In order to permit the collection through le at or payab Reserve Banks of noncash items drawn on or such of in ed locat through nonmember par-remitting banks s, and ssion posse the Territories, dependencies, insular l United nenta conti parts of the United States outside the ation nate, Regul desig States as the Board of Governors may folthe in 1954, G is hereby amended, effective July 15, lowing respects: on 1 of Regu1. The introductory language of secti lation G is changed to read as follows: 'noncash "As used in this Regulation, the term classes wing follo Items' means any items of the ict': distr ve Reser when payable in any Federal 1For the purposes of this Regulation, Alaska, , insular Hawaii, Puerto Rico and any dependency States outside possession or part of the United be deemed to the continental United States shall ict as the distr ve Reser be in or of such Federal " nate. Board of Governors may desig 10 4 -12- 7/2/54 2. The numbering of present Footnotes 1 and 2 is changed to 2 and 3, respectively. DESIGNATION OF ALASKA AND HAWAII AS BEING IN OR OF TEE TWELFTH FEDERAL RESERVE DISTRICT FOR PURPOSES OF REGULATION G Pursuant to Footnote 1 of Regulation G, as amended effective July 15, 1954, the Board of Governors has taken the following action: For purposes of Regulation G, Alaska and Hawaii shall be deemed to be in or of the Twelfth Federal Reserve District, effective on and after July 15, 1954. Letter to the Presidents of all Federal Reserve Banks reading as follows: There is enclosed a draft of "Regulations Relating to the Safeguarding of Defense Information", the adoption of which the Board has under consideration. Attached to the draft are copies of Executive Order No. 10501 and a You will note Presidential memorandum issued thereunder. referred are lum memoraw the that the Executive Order and ion. regulat to in section 1 of the draft 7 Your attention is invited particularly to section s concern section That ions. of the proposed draft regulat and tion informa defense ied the dissemination of classif refers specifically to the Federal Reserve Banks. s The Board would appreciate receiving such comment or suggestions as you may wish to make with respect to ions. It section 7 or any other part of the draft regulat ions as suggest or s comment would be most helpful if such d by receive be to as so you may have could be forwarded the Board not later than July 19. Approved unanimously. Letter to the Presidents of all Federal Reserve Banks reading as follows: Enclosed is a copy of a proposed S-letter covering the disposition of the copies of examination reports furnished by the Federal Reserve Banks to State member banks. 7/2/54 -13- Your comments or suggestions concerning the proposed S-letter will be appreciated. Approved unanimously. Letter to Mr. Fulton, President, Federal Reserve Bank of Cleveland, reading as follows: Reference is made to your letter of June 8, 1954, transmitting copy of a proposed contract with Mr. William York Cocken for services as architect in connection with the Pittsburgh building program, and to your conversation of June 24 with Mr. Leonard on the subject. In view of the exceptional conditions referred to in Mr. Cocken's letter of June 5 and your further explanations, the Board will interpose no objection to execution by the Bank of the contract in the form proposed. Approved unanimously. Letter to Mr. Lang, Chief Federal Reserve Examiner, Division of Examinations, reading as follows: This refers to your letter of May 17, 1954, to Mr. Sloan requesting advice as to the official attitude with respect to air travel between duty stations by members of the field staff of examiners. Official travel by airline should not be performed by a member of the field staff of examiners without first obtaining the approval of the Chief Federal Reserve Examiner. The Chief Federal Reserve Examiner is authorized to permit such travel in exceptional, unusual, or necessitous circumstances. It is understood, of course that travel from a duty station to official headquarters for annual leave at the time of the regular summer vacation and Christmas vacation periods of the field staff is classed as official travel, as well as travel from official headquarters to the next duty station at the close of such vacation periods. 1006 7/2/54 The Chief Federal Reserve Examiner is authorized also, in his discretion, to withhold permission for official air travel by members of the field staff in cases where, because of the time of the year, with increased the probability of grounding of passenger planes, and a distance between duty stations (or, at the close of vacation period, the distance between official headquarters and the next duty station), there would be the possibility of members of the field staff arriving at the next duty station either too late for the opening of the examination or so early as to endanger the surprise element of the examination. In this connection, it should be noted that if, for to the example, it is advisable to prohibit air travel ted next duty station, but travel by air could be permit arise to the succeeding duty stations, a situation could In which the traveler might have to defray personally the added cost of such travel by rail and air as compared with a round trip which could have been made entirely by rail. A similar situation could arise with respect to on leave travel by air to official headquarters for vacati ing follow n statio duty and travel by rail to the first rethe to , course of due, the vacation period. This is when that, tions regula quirement of the Board's travel round trip savings can be effected by the purchase of tickets, they should be Obtained. of the It is suggested that you inform the members that order in letter field staff of the contents of this by travel al offici no It may be clearly understood that sion from permis ing obtain air should be performed without even after obthe Chief Federal Reserve Examiner; that, ty of the sibili respon the taining such permission, it is at arrive to er examin individual examiner or assistant nor unlate too r neithe duty stations at times that are ing ions involv situat arise duly early; and that there may of ements requir y econom departures from the round-trip s the examiner the travel regulations, in which circumstance costs. would have to pay the difference in Approved unanimously.
@FedFRASER