The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
A meeting of the Board of Governors of the Federal Reserve System II" bad in Washington on Wednesday, July 21, 1957, at 11:45 a.m. PRESENT: Mr. Eccles, Chairman Mr. Mr. Mr. Mr. Ransom, Vice Chairman Broderick McKee Davis Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman Consideration was given to each of the matters hereinafter referred to and the action stated with respect thereto was taken by the Board: The minutes of the meeting of the Board of Governors of the Federal Reearv_ 6ystem held on July 20, 1957, were approved unanimously. Telegrams to Mr. Young, President of the Federal Reserve Bank of B°8t°112 and Mr. Stewart, Secretary of the Federal Reserve Bank of St. Louis, BtAtilarr that the Board approves the establishment without change by the 15444 today Of 1 the rates of discount and purchase in their existing scbed- Approved unanimously. Memorandum dated July 17, 1957, from Mr. Goldenweiser, Director ot hv. uivision of Research and Statistics, referring to the action taken 17,Y the 11. wi -oard on March 15 and April 10, 1957, authorizing him to negotiate metibt the Federal Reserve Bank of San Francisco for the services of Mr. tt Sherman, Assistant Chief of the Division of Research of the bank, tor a Period of three months, to assist Mr. Blattner, Assistant Director tiple Div; 4 -48-Lon of Research and Statistics, on the Bank Suspension Study,. 101',7f 7/21/37 —2— and reco mmending that, as it does not appear desirable for him to dis— "imae his work on the project in order to limit his service to three 111°Iitils 'such period be extended for not to exceed fifteen days from July 19) 1957. Approved unanimously. Memorandum dated July 19, 1937, from Mr. Morrill recommending that Miss Catherine Burke, a telephone operator at the Treasury exchange, *Icee salary at the rate of $1,800 per annum has been paid by the Board t8reeveral years, be continued on the Board's payroll, with no change in het Present :: salary, and that she be placed in charge of the switchboard new building. The memorandum also recommended the appointment of -86 PlGrs J. Griffith as a telephone operator at the new building, with NA rY at the rate of $1,580 per annum, effective as soon as her services 111"0 required after having passed satisfactorily the usual physical ex4rnitatione Approved unanimously. Memorandum dated July 20, 1957, from Mr. Morrill, recommending thea PP°Latatent of Mr. Morris B. Mayhew as landscape gardener at the Board, t 8 Ilew building, with salary at the rate of $1,500 per annum, ef— "t4eS of the date he enters upon the performance of his duties after 1111€ Psaseld s atisfactorily the usual physical examination. Approved unanimously. 1018 Letter to the board of directors of "The State Bank of Vassar", VassE4I 'Michigan, stating that, subject to the conditions of membership 44mbered J. to 5 contained in the Board's Regulation H, the Board approves thebailkI8 application for membership in the Federal Reserve System and f°r the appropriate amount of stock in the Federal Reserve Bank of Chicago. Approved unanimously, for transmission through the Federal Reserve Bank of Chicago. Letter to the board of directors of the "First-Owensboro Bank & TIMIsteOmn Owensboro, Kentucky, stating that, subject to the conditloro. ' of membership numbered 1 to 6 contained in the Board's Regulation H, krld the f °110wing special conditions, the Board approves the bank's applieettion fo r membership in the Federal Reserve System and for the appropriate am -4)11nt of stock in the Federal Reserve Bank of St. Louis: 117 . _tich bank shall make adequate provision for depreciation ln its banking house and furniture and fixtures. Prior to admission to membership, such bank, if it has not already done so, shall charge off or otherwise eliminate estimated losses of $9,252.68 in loans and $92.89 !II tellers? differences, and shall restore $4,372.89 of 4nactive accounts which were previously credited to profit and loss, all as shown in the report of examination of such bank as of March 13, 1957, made by an examiner fOX' the Federal Reserve Bank of St. Louis." Approved unanimously, together with a letter to Mr. Martin, President of the Federal Reserve Bank of St. Louis, reading as follows: ap, "The Board of Governors of the Federal Reserve System rtrIZZ'res the application of the 'First-Owensboro Bank & l'ederp,?%PallYt, Owensboro, Kentucky, for membership in the t4 neserve System, subject to the conditions prescribed the inclosed letter which you are requested to forward to 7/21/57 -4- "the board of directors of the institution. Two copies of Such letter are also inclosed, one of which is for your files and the other of which you are requested to forward to the Commissioner for the Commonwealth of nking & l entucky Securities for his information. "It will be noted that the Board has not prescribed the 8Peoial condition of membership recommended by your Committee restricting the bank in the exercise of certain powers which it Possesses under its articles of incorporation but was not ?xercising at the time of its application for membership. In thiS connection, the Board has taken the position that in eases where applying banks are not exercising any unusual P°wers special conditions are unnecessary inasmuch as the matter is covered by condition of membership numbered 1. , Lerefore, in lieu of prescribing a special condition, in 'ne letter to the bank particular attention is called to the Provisions of that condition. In the report of examination as of March 15, 1957, the eminer lists certain assets totaling $47,145.80 as unaccept:; 1e 2 and the copy of the memorandum, included in the report, of: 1 ,conference with the mnnngement by Mr. Wood and members 18 staff indicates that certain of these assets will be ," inyminted immediately and the remainder will either be placed cosptable form or eliminated within one year. It is asITird, of course, that the fulfillment of the agreement will f°110wed to a satisfactory conclusion. pea It has been noted from the report of examination by the v_eral Deposit Insurance Corporation, as of the same date as sno membership examination, that several accounts of partner1: , 42 1 8 or corporations operated for profit are carried as say.rij em- deposits. It is assumed that if the bank is admitted to 001416"UP its attention will be called to the fact that acvipe do not qualify as savings accounts under the pro:Board's regulations should be carried in some othl erfai 3 :a by the Mr. Morrill submitted a recommendation, which had been approved Personnel Committee, that the Board authorize the payment of a vollebe r eubmitted by Paul P. Cret, Architect for the Board's new buildin the amount of $1,259.58, covering travel expenses, special in— aPectiola fees and certain miscellaneous expenses in connection with ar- 4xitectur., -4. services on the building, as listed in the memorandum 1020 7/21/37 ase5020 slaftittod by Mr. Cret. The voucher was submitted to the Board for ap15111 for the reason that it included two $50 fees in connection with tw° inspection trips to Washington by Mr. Moody of Moody & Hutchinson, c°118ttiting mechanical engineers employed by the architect. While the ectrtra ct with the architect madri no provision for fees for the consult-.Cal engineers, it wEw felt by Messrs. Cret and Kramer that Mt. M004yts trips were necessary in connection with the proper super- of c onstruction and that, therefore, the fees should be paid tly the Board. Approved unanimously. Mr. Morrill submitted a recommendation, which had been approved 13,Y the personnel Committee, that the Board authorize the purchase of "mbinat4 , on towel cabinets and waste receptacles, and paper towel cases, 48 listed in purchase order No. 1796, at a total cost of $593.06, and of oertai_ .1-n Janitors' supplies from the Procurement Division of the Treasury 4q)eltmen4 -ut as listed in purchase orders Nos. 199 and 200, for use in the Bo ai'd's new building. Approved unanimously. Thereupon the meeting adjourned. APProvecu Chairman.
@FedFRASER