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Minutes for
To:
Members of the Board
From:
Office of the Secretary
July 22 1958
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, if you
were present at the meeting, please initial in column A below to indicate that you approve the minutes.
If you were not present, please initial in column B
below to indicate that you have seen the minutes.
Chm. Martin
Gov. Szymczak
Gov. Vardaman
Gov. Mills
Gov, Robertson
Gov. Balderston
Gov. Shepardson
2093
Minutes of the Board of Governors of the Federal Reserve System
Ort Tuesday,
July 22, 1958.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
The Board met in the Board Room at 10:00 a.m.
Martin, Chairman
Balderston, Vice Chairman
Szymczak
Vardaman
Mills
Robertson
Shepardson
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Kenyon, Assistant Secretary
Fauver, Assistant Secretary
Thurston, Assistant to the Board
Riefler, Assistant to the Chairman
Thomas, Economic Adviser to the Board
Leonard, Director, Division of Bank Operations
Young, Director, Division of Research and
Statistics
Masters, Director, Division of Examinations
Molony, Special Assistant to the Board
Farrell, Associate Director, Division of Bank
Operations
Solomon, Assistant General Counsel
Hostrup, Assistant Director, Division of
Examinations
Goodman, Assistant Director, Division of Examinations
Items circulated to the Board.
The following items, which had been
ciliated to the members of the Board and copies of which are attached to
the Be
minutes under the respective item numbers indicated, were approved
1A4an
tmously:
Item No.
Li!ter to the Federal Reserve Bank of Chicago regarding
i vestments by the Ann Arbor Bank, Ann Arbor, Michigan,
st revenue bonds issued by the Board of Education of the
Itte of Michigan.
t
ter to the Federal Reserve
8:'.erring action on a request
being in or of the Twelfth
°r PlIrposes of Regulations G
Bank of San Francisco
that Guam be designated
Federal Reserve District
and J.
2
2094
7/22/58
-2Item NO.
Letter to the Comptroller of the Currency recommending
sPProval of an application to organize a national bank
!!'t Manistee, Michigan. (With a copy to the Federal
tieserve Bank of Chicago)
Discount rates.
3
Unanimous approval was given to a telegram to the
Federal Reserve Bank of Atlanta approving the establishment without change
bY that Bank on July 21, 1958, of the rates on discounts and advances in
its existing schedule.
Application from Marine Midland Trust Company of Southern New York.
There had been circulated to the members of the Board a file relating to
the
aPPlication of Marine Midland Trust Company of Southern New York,
4ndral New York, for permission to establish a branch at 245 Broad Street,
IfEtverly, New York, incident to a proposed merger with The Citizens National
4411c of Waverly.
In this case the Board's approval of the merger was not
recildred under the provisions of section 18(c) of the Federal Deposit
Irlatlalance Act; on the branch application, the recommendations of the
?evictlal Reserve Bank of New York and the Board's Division of Examinations
favorable.
Governor Mills referred to the inclusion in the Board's recent
rePort to Congress concerning the Bank Holding Company Act of a recommen4at1on for amengiment of the Act which would have the effect of bringing
111t41a
the purview of that statute absorption of independent banks, by
. or otherwise, by banks that are part of a holding company system.
Itiergcl
lie .1
'
44-80 mentioned the detailed consideration which had been given by the
209,
7/22/58
-3-
Board to cases coming before it in the past involving expansion of the
Marine Midland group.
In these circumstances, it was his opinion that
current branch applithe analysis furnished to the Board concerning the
red judgment in the
cation was insufficient to permit reaching a conside
matter.
file now in
In further comments, Governor Mills referred to a
circulation to the Board relating to an application for the approval of
bank
bl'anches incident to a proposed merger of a Marine Midland subsidiary
and he
14 Nyack, New York, with an independent bank in Pearl River,
indicated that his comments with respect to the insufficiency of the
ble
e4a1Ysis concerning the case before the Board today were equAlly applica
to
the Nyack case.
Governor Mills also noted from the file concerning the
allaication to establish a branch in Waverly that The Citizens National
Ilank had been offered for sale and that there were three bids, of which
that by the Marine Midland Trust Company was the highest.
He raised the
cAlestion whether the Board should have information concerning the nature
either
°I' the other two bids before reaching a decision, particularly if
Or both of those offers would permit the continuation of an independent
bar11,4
---k-Lng operation in Waverly.
There followed some discussion of the facts of the case during
Ilhich reference was made to the agreement entered into by the Board with
ood
Ilarine Midland Corporation in 1951 pursuant to which it was underst
that Marine Midland would provide advance information on an informal basis
2096
7/22/58
-4-
concerning plans for expansion.
It was noted that this arrangement
resulted from the Board's serious concern about expansion of the Marine
Midland group in certain areas of the State of New York.
Secretary's Note: This arrangement
was terminated by the Board's letter
of November 9, 1955.
At the conclusion of the discussion, the application of the
Maxine Midland Trust Company of Southern New York was referred back to
the Division of Examinations for submission of additional information.
Application for approval and reservation of a name for a proposed
Act financing corporation.
Parties affiliated with the Chemical Corn
4Change Bank of New York City had submitted to the Board through the
l'ederal Reserve Bank of New York an application for approval and reservation
c3t a name for a corporation proposed to be organized under section 25(a)
°I' the Federal Reserve Act which, after organization, would be owned by the
11Qelther bank.
The name originally selected ("Chemical International, Ltd.")
(1141 not indicate the nature of the business contemplated, as required by
section 3(h) of Regulation K, and it appeared to be similar to the name of,
6141 to identify the corporation with, the parent institution in violation
t section 10(c)(2).
These points were discussed with the parties concerned
b/r the Federal Reserve Bank of New York, following which the application
/418 amended to substitute the name "Chemical International Finance, Ltd."
In a memorandum from Messrs. Goodman and Solomon dated July 7,
1958
which had been circulated to the members of the Board, it was stated
that
the name now proposed for the Edge Act corporation seemed to meet the
209
..5
7/22/58
requirement of section 3(b) of Regulation K.
With respect to section 10(c)(2),
Counsel for the applicants stated that inclusion of the word "finance"
Precluded confusion of the proposed title with the name of, or identification of the proposed corporation with, a bank.
He further suggested
that "Chemical International Finance, Ltd." fully preserved the identity
of the proposed corporation as distinguished from the parent bank.
Nevertheless, it was believed by the Board's staff that the use of the
Proposed name would identify the financing corporation with the parent
bank within the meaning of section 10(c)(2).
It was pointed out that the
13°61rd could, of course, waive this provision of Regulation K and approve
the requested name; or that the Board could amend Regulation K to delete
the requirement that "no financing corporation hereafter organized shall
have a name which is similar to the name of, or identifies the corporation
any bank in the United States with which such financing corporation
18 affiliated."
Following comments by Mr. Goodman based on the memorandum that had
be.-
'LI submitted to the Board
Governor Balderston stated that he would be
14elined toward amendment of Regulation K to eliminate the restrictions
°4 the name of an Edge Act financing corporation now contained in
8ection 10(c)(2).
He said that it was rather naive to think that those
(lealing with such a corporation would do so without knowledge of its
°174ership.
2098
7/22/58
-6Governor Balderston's views were seconded by Governor Vardaman,
'who noted that he had expressed himself to the same effect previously.
It was his view that, if anything, an Edge Act financing corporation
should be required to carry a name that would identify it with its
Parent institution.
Chairman Martin then celled upon Mr. Goodman for a statement
regarding the origin of the present provisions of Regulation K, and the
latter replied that they grew out of one of the recommendations of the
Special Committee on Foreign Operations of American Banks (the so-called
Neal Committee), which suggested that nonbanking subsidiaries of banks
sh°111d not be identified by name with the parent institution.
In
l'seommending a wide scope of operations for such nonbanking subsidiaries,
the Committee also recommended limiting definitely the liability of the
13e-rent bank for the affairs of the subsidiary.
The Committee desired
13articularly to make it clear to the purchaser of any obligation of the
8lbsidiary that such obligation depended for repayment entirely on the
assets of the subsidiary.
Mr. Solomon commented that a decision on the part of the Board
to anlend Regulation K would raise a question of procedure; that is,
%lhether the Board would want to follow the usual process prescribed in
the Administrative Procedure Act of publishing the proposed amendment
44i. obtaining comments thereon, or whether the Board would wish to go
2099
7/22/58
_7_
ahead and make the amendment on the theory that publication of it was
Unnecessary.
It could probably be argued, he said, that an amendment
of this kind would not be harmful to anyone's interests and that advance
Publication therefore was not necessary.
Governor Vardaman then stated that an alternative to amending
Regulation K at this time would be to waive the applicable provisions
in this instance and then proceed in accordance with the processes
Prescribed in the Administrative Procedure Act.
Governor Szymczak pointed out that the Board had already established
something of a precedent by approving the name "Chase International
Investment Corporation" when The Chase Bank transferred to the status of a
financing corporation.
In that case, of course, there was an Edge Act
eorPoration already in existence.
If the Board should approve the name
f°rwhich approval was now requested, he felt that it probably would want
to give consideration to amending Regulation K.
Governor Mills stated that his reasoning followed that of Governor
Szyme
zak.
it
The Board having established something of a precedent, he felt
lgould be only fair to approve the requested name in this instance.
A
1441ver) he suggested, would permit the Board to obtain further experience
ilnder the Regulation, as presently worded, before deciding upon an amendment
to its
Governor Robertson stated that he would not be inclined to approve
646
'reserve a title for any proposed Edge Act corporation for an indefinite
2-100
7/22/58
I3eriod.
-8All that was necessary, he felt, was to give an assurance to
the organizers that for a prescribed period no other parties would be
Permitted to use the requested name.
It was his suggestion that in
this case the interested parties might be advised that the Board had
44der consideration a proposal to change the provisions of Regulation K.
In further discussion, Governor Shepardson said he was inclined
to think that there might be merit to the position of Governor Balderston.
Re called attention, however, to the extensive study and debate that
Preceded the adoption of the revised Regulation K and to the reasons,
48 Previously cited by Mr. Goodman, for the recommendation that resulted
14 the inclusion of the language now found in section 10(c)(2).
Therefore,
it appeared to him that before taking action to amend the Regulation in
the manner suggested the Board might want to review fully the arguments
l'41/0ring retention of the present provisions of the Regulation.
After further consideration of possible alternatives, agreement
.41.8 expressed with the suggestion that action be deferred until the
illeeting tomorrow, at which time Mr. Goodman would review more fully for
the Board the background of the present provisions of Regulation K
l'elating to the name of an Edge Act financing corporation.
During the foregoing discussion Mr. Hostrup withdrew from the
4leetilig, and at its conclusion Mr. Goodman withdrew.
Response to telegrams from Congressman Patman
(Item No. 4).
In
ctecordance with the understanding at the meeting of the Board yesterday,
210/
7/22/58
-9-
there had been distributed to the members of the Board a draft of a
Proposed letter to Congressman Patman of Texas acknowledging his telegrams
()i) JulY 9 and July 18, 1958, concerning the Government securities market.
Question was raised by Governor Vardaman whether, at an appropriate
tinle, a more comprehensive reply should be made to Mr. Patman's first
telegram, it being his thought that such a reply might deal with the
general philosophy of System open market operations in other than unusual
Circ umstances such as had prevailed recently.
In an ensuing discussion,
Governor Vardaman agreed with a statement by Chairman Martin that at the
Moment an acknowledgment of the kind that had been drafted for the Board's
consideration was satisfactory.
Accordingly, unanimous approval was given to the letter to Congress-
Patman of which a copy is attached under Item No. 4.
Question raised by Senator Neuberger
(Item No. 5).
Under date of
jillY 14, 1958, Senator Neuberger of Oregon wrote to the Secretary of the
l'easurY suggesting a study of Federal Reserve district lines in the light
°r current conditions, and particularly that the Twelfth Federal Reserve
)18tr1ct be divided and a new district established which would include
the States of Alaska, Oregon, Washington, and Idaho, as well as the State
c4 Montana, with headquarters either in Portland or Seattle.
The letter
1414 been handed to Chairman Martin by the Secretary of the Treasury and
a Pr'oPosed reply to Senator Neuberger had been distributed to the members
of the Board prior to this meeting.
2102
7/22/58
-10Chairman Martin stated that Senator Neuberger called him on the
telephone yesterday regarding the matter.
Mr. Neuberger stated that he
considered the matter important and expressed the hope that the Board
liould consider the suggestion carefully.
The Chairman said he told
Senator Neuberger that the Board currently had under consideration a
IN"lew of Federal Reserve district lines.
He pointed out to the Senator
that it would be necessary to obtain Congressional action to change the
131'esent number of Federal Reserve districts and that he felt the Board
Probably would want to await an indication of Congressional action on
the Pending Hawaiian statehood measure before reaching any decisions.
Re indicated to the Senator that he would keep him informed of develop-
After consideration of the proposed reply, during which certain
chatiges were suggested, the Chairman turned to Mr. Farrell, who had been
l'egilested at a recent meeting of the Board to consider how a study of
?ecleral Reserve district lines might best be organized.
Mr. Farrell stated that, as the Board was aware, a decision to
g° into the question of redistricting on an over-all basis would be a
elltous one, to which the Board no doubt would want to give very careful
e°flaideration, for it would mean going back more than
4o
years and taking
4 treah look at what was done when the Federal Reserve districts were
(3118111al1y established.
While the reasons for making such a study were
r4ther Obvious; nAmely, that the original decisions may not have been the
bast
°nes and that conditions might have changed over the years to such an
210:
7/22/58
-11-
extent as to indicate the need for reviewing the situation, the effect
Might be to provoke repercussions even more severe than when the original
decisions
were made because the study would reopen old wounds that had
healed to some extent with the passage of time.
Mr. Farrell noted that
the records with respect to proposals which had been made to change
Pederal Reserve Bank and branch territories afforded evidence that there
ere ao clear-cut industrial or business areas which provide a logical
bsais for drawing district lines.
In the circumstances, there were
certain to be objections to any decisions that might be reached. Furtherany decision to mPke a change in the number of Federal Reserve
districts,
either upward or downward, would require amendment of the
?eleral Reserve Act, and hearings on such a recommendation might broaden
lilt a more fundamental review of the whole statute.
In further comments,
Farrell mentioned that the possibility of a separate Federal Reserve
flietrict to serve the Northwestern section of the United States
z'ecogrlized during the origirull consideration of district lines.
WAS
He also
ellttlerated the six criteria which were used in determining the Federal
Reserve districts.
With regard to the organization of a study, Mr. Farrell said that
°Ile alternative would be for the Board to undertake a study through its
while another possibility would be to outline the scope of the
tillY and then employ some party or parties to conduct it.
Still another
15°8eib1lity would be to turn the matter over to a carefully selected
citaide agent.
2104
7/22/58
-12Chairman Martin then pointed out that the immediate problem
before the Board was to reply to Senator Neuberger's letter and said that
the tYloe of reply that had been prepared seemed to him generally satisfactory, assuming that the changes suggested at this meeting would be
Then, at a later date when Mt. Farrell had a memorandum
incorporated.
available for the Board's consideration, the Board could decide what
krther steps it wished to take.
Thereupon, unanimous approval was given to a letter to Senator
Neltherger in the form attached under Item No.
5.
There ensued an informal discussion of Treasury financing problems
developments in the Government securities market, following which the
1°"ting adjourned.
Secretary's Note: Governor Shepardcon today
approved on behalf of the Board the following
items:
ill Memoranda from appropriate individuals concerned recommending increases
.he basic annual salaries of the following persons on the Board's staff
i4 ',t
'he amounts indicated, effective July 27, 1958:
Nazi
djtle
Division
Basic annual salary
To
From
Office of the Secretary
Mildred E. Pilger, Supervisor,
D,klministrative, Subject, and FOMC Files
a-i-izabeth P. Vanni, Minutes Clerk
$6,585
$6,735
4,230
4,325
7,270
7,510
4,790
4,490
4,940
4,640
Research and Statistics
13a\rid C. Crockett, Economist
Examinations
oaa
j
Johnson, Secretary
"
s H. Joyce, Assistant Federal
Aeserve Examiner
2105
7/22/58
Letter to the Federal Reserve Bank of Kansas City approving the
aPpointzent of Wade H. McDowell as examiner. A copy of the letter is
attached as Item NO 6.
210G
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 1
7/22/58
WASHINGTON 25, D. C.
ADDRESS
ktltt
OFFICIAL
CORRESPONDENCE
TO THE BOARD
July 22, 1958
W. R. Diercks, Vice President,
',,ederal Reserve Bank of Chicago,
(30 South LaSalle Street,
Chicago 90,
Illinois.
tear Mr. Diercks:
This refers to your letters of April 22 and 25, 1958,
erio,
Ant-vszng correspondence between you and Mr. Reichert, President of the
tio Arbor Bank, Ann Arbor, Michigan, with respect to a possible violaOf section 5136 of the Revised Statutes occasioned by investments
pi iv_,rious revenue issues of the Board of Education of the State of
--er13-Can.
Mr. Reichert's letter of April 180 1958, quotes the provisions
of atYPical bond which names the State Board of Education as the "obligor"
or .,states that "no recourse shall be had for the payment of principal
ebilnterest". However, it is also stated that the "liability of the
deri.,g°1". as a body corporate, shall be limited to the net income, as
in the trust agreement". Therefore, it is apparent that the
State
the Board of Education is obligated at least to the extent of applying
.4,(3t income as so defined, to the payment of the principal and interest,
111.4!" is the extent of the obligation ordinarily undertaken in connection
.41 revenue
bonds.
Section 5136 of the Revised Statutes provides that the total
EQ"c)unt Of the
Doli+4
investment securities (excluding general obligations of
tor ;leal bodies) of any one obligor or maker held by a national bank
steer 01in account may not exceed 10 per cent of the bank's capital
0t
Sta 2.nd surplus fund, and this provision is applicable also to member
1, 11,:huanks. There is no provision excluding securities of an obligor
toalq'er who has only a limited obligation thereon. Since the State
Education is the obligor or maker on various issues of revenue
toether, .baLions the bank's holdings of all such securities must be added
k)
A_ P
-Ln determining whether its 10 per cent limit has been exceeded.
2107
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
• Diercks
—2—
The Ann Arbor Bank requested an opinion of the Comptroller
1%.thf Currency on this question, and there is enclosed a copy of
111 ,21AneY's letter of June 260 19580 in response to that request*
Di 'ais connection, your attention is called to Paragraph 4408 of the
th,ret of Opinions of the Comptroller of the Currency, which deals with
general subject*
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
11140sure
2108
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
Item No. 2
7/22/58
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
July 22, 1958
Mr. H. No Mangels, President,
Federal Reserve ELAIL of San Pranciaco,
San Franc:ftee 20, California*
near Mr. Mangelb:
This refers to your letter of July 2, 19580 regarding
t4
roquerlt made by Bank of America N. T. 8c So A. that the Board
2f Governors designate Guam as being in or of the Twelfth Federal
4..!serve District for purposes of Regulation G and Regulation J.
is noted that your Bank would be agreeable to the proposed
action and that if such action were taken it is contemplated that
Inaxinium two-day deferment scheduled for Guam cash items would be
'
etablished although actual collection time would be longer, but
1:1-th the expectation that your Bank would discuss with Bank of
lear
f
in San Francisco the possibility of its making payment
cash letters two days after dispatch by your Bank.
Your letter states that the matter is not urgent and
action thereon could be deferred until it is necessary to
rsZPrint Regulations 0 and J upon the admission of Alaska as a
t ate. In view of the circumstances, action upon the request will
deferred for a time, which will permit the matter to be explored
+! orne extent at the meeting of the Subcommittee on Collections
be held early next month.
that
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary*
2109
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 3
7/22/58
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
July 22, 1958
20411)troller
of the Currency,
114m8ury Department,
4*Bnington 25, D. C.
Attention Mr. W. M. Taylor,
Deputy Comptroller of the Currency.
bear
. Comptroller:
Reference is made to a letter from your office dated February 3,
1958,
marii enclosing copies of an application to organize a national bank at
tha 8tee, Michigan, and requesting a recommendation as to whether or not
aPPlication should be approved.
Information contained in a report of investigation of the apPlication made
(14el
by an examiner for the Federal Reserve Bank of Chicago
111ka)
;
ses generally satisfactory findings with respect to the factors
4404-1.Y considered in connection with such proposals, except as to the
gateacY of the proposed capital structure. At the time of the investior 64) the organizers agreed to provide a capital structure for the bank
-;,°°,000. However, in view of the anticipated volume of business and
torm-c'ntemplated investment in fixed assets by the proposed bank, our in8110V ie of the opinion that a minimum capital structure of $350,000
appli m be required. The Board of Governors recommends approval of the
44-neation provided arrangements are made for a capital structure satis-1'Y to your office.
at),
The Board's Division of Examinations will be glad to discuss
des 48Pects of this case with representatives of your office if you so
ire.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2110
BOARD OF GOVERNORS
OF THE
Item NO. 4
7/22/58
FEDERAL RESERVE SYSTEM
WASHINOTON
OFFICE OF THE CHAIRMAN
July 22 1958.
The Honorable Wright Patman,
House of Representatives,
Washington 25, D. C.
Dear Mr. Patman:
Your telegram of July 18, commenting on the
action taken by the Federal Open Market Committee earlier
in the day, has been received.
Copies of the message, as
well as copies of your telegram of last week, have been
furnished to the members of the Board and Committee for
their information.
Sincerely,
(Signed) Wm. McC. Martin, Jr.
Wm. Ma. Martin, Jr.
2111
BOARD OF GOVERNORS
OF THE
Item No.
FEDERAL RESERVE SYSTEM
7/22/58
WASHINGTON
OFFICE OF THE CHAIRMAN
July 221 1958
The Honorable Aichard L. Neuberger,
United States Senate,
Washington 25„ D. C.
Dear Senator Neuberger:
As you requested, your letter of July A, l958, to
Secretary Anderson, was transmitted to the Board of Governors
reply.
The question you present is under study in accordance
With the Alaskan Statehood bill which, as you know, provides
itjhat "when the State of Alaska is hereafter admitted to the
bnlon the Federal Reserve districts shall be readjusted by the
'uoard of Governors of the Federal Reserve System in such manner
as to include such State."
Your letter suggests that the Twelfth Federal Reserve
kstrict, with headquarters at San Francisco, be divided into
12140 districts, and that consideration be given to the inclusion
vr Alaska, Oregon, Washington, Idaho and Montana in a separate
,
A-strict with headquarters located either in Portland or Seattle.
As you are aware from the extract from the Federal
!!eaerve Act which accompanied your letter, the Federal Reserve
i'lstricts
'
"may be readjusted and new districts may from time to
- .1me be created by the Board of Governors of the Federal Reserve
4?.etem, not to exceed twelve in all." Accordingly, in order
7 effectuate the proposal as outlined in your letter it would
4s'
ue necessary to obtain the approval of the Congress.
The Board will, of course, as you request, give
00.1
eideration to your suggestion. It is probable that we
:hall defer a recommendation to Congress, as I suggested in
telephone conversation yesterday, until it becomes clearer
wnat action the Congress decides to take in regard to the
Pending Hawaiian Statehood measure.
Sincerely yours,
(Signed) Wm. McC. Martin, Jr.
Wm, McC, Martin, Jr.
5
2112
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
Item No. 6
7/22/58
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
July 22, 1958
Mr. D. W. Woolley, Vice President,
Federal TbsE:rve Bank of Kansas City,
Kansas City 6, Missouri.
Dear Mr. Woolley:
In accordance with the request contained in your
letter of July 16, 1958, the Board approves the appointment
of Wade H. McDowell as an examiner for the Federal Reserve
Bank of Kansas City.
It is noted that Mr. McDowell is indebted to
Bank of Louisburg, Louisburg, Kansas, a nonmember bank, in
the amount of $130. Accordingly, the Board's approval is
given with the understanding that Mr. McDowell will not
Participate in any examinatLon of that bank until the indebtedness has been liquidated.
Please advise the Board as to the salary rate and
the effective date of the appointment if it is not August 1,
1958, as planned.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
@FedFRASER