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July 27, 1959 Minutes for To: Members of the Board From: 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, 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. A Chin. Martin Gov. Szymczak Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. King r-/C-1/73 Minutes of the Board of Governors of the Federal Reserve System on Monday, July 27, 1959. PRESENT: Mr. Mr. Mr. Mr. The Board met in the Board Room at 10:00 a.m. Balderston, Vice Chairman Mills Robertson Shepardson Mr. Sherman, Secretary Mr. Kenyon, Assistant Secretary Messrs. Noyes and Robinson, Miss Burr, Messrs. Altmann, Eckert, Fisher, Gehman, Keir, Peret, P. Smith, and Wernick, and Miss Stockwell of the Division of Research and Statistics Messrs. Marget, Hersey, Sammons, Gemmill, Irvine, Katz, Reynolds, and Wood of the Division of International Finance Economic review. Members of the Division of International Pi nance reviewed selected international economic developments, with emphasis on the relationship thereof to the United States balance of Payments, following which members of the Division of Research and Statistics presented a summary of domestic business and financial clevelopments. In response to a question, comments were made on the recent l'ev1 810n of the weekly reporting member bank series, after which the t'ePresentatives of the International Finance and Research Divisions Messrs. Solomon, Assistant General Counsel, Nelson, Assistant bire„ "or, Division of Examinations, and Lyon, Federal Reserve Examiner III that Division, entered the room at this point. t 7/27/59 -2Items circulated to the Board. The following items, which had been circulated to the members of the Board and copies of which are attached to these minutes under the respective item numbers indicated, approved unanimously: Item No. Letter to the Coopersville State Bank, Coopersville, 1 Michigan, approving the establishment of a branch in Comstock Park. tter to The First State Bank of Petoskey, Petoskey, , , 11-chigan, approving the establishment of a branch at ) D5 West Mitchell Street. 2 Letter to the Arnold Savings Bank, Arnold, Missouri, 41213r°ving an investment in bank premises. 3 ,1:7etter to the State Bank of Hawley, Hawley, Minnesota, ! a iving the requirement of six months notice of with' 8148-1 from membership in the Federal Reserve System. 4 tter to Exchange Investors, Inc., Glendive, Montana, 5 —garding its status as a holding company affiliate. ITJetter to the First State Bank and Trust Company, Bryan, e)'", approving the establishment of a drive-in branch. The meeting then adjourned. Secretary's Notes: Governor Shepardson today approved on behalf of the Board the following items affecting the Board's staff: 6 7/27/59 -3- Memorandum dated July 22, 1959, from Mr. Marget, Director, Division ct International Finance, recommending attendance of Robert L. Sammons, Associate Adviser in that Division, at the Merrill Center for Economics, Southampton, Long Island, during the period August 10-21, 1959, on the same basis as the authorization given on July 13, 1959, to Messrs. Noyes and Robinson, Advisers, Division of Research and Statistics. Memorandum from the Division of Personnel Administration dated 11Y 27, 1959, recommending that James C. Smith, Assistant Director, ,lvision of Examinations, be granted the option of changing from the 31allk Plan of the Federal Reserve Retirement System to the Board Plan. Governor Shepardson also approved today on behalf of the Board a letter to the Federal Reserve Bank of Richmond (attached Item No. 7) approving the appointment of William Parry Slaughter as assistant examiner. k Secretary BOARD OF GOVERNORS OF THE 4 1 \ 1 4 444:1/ Item No. 1 7/27/59 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE NftSIOV ' TO THE BOARD July 27, 1959 Board of Directors, Coopersville State Bank, Coopersville, Michigan. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Chicago, the Board of Governors of the Federal Reserve System approves the establishment of a branch at 3875 West River Drive, 1. E., in the unincorporated community of Comstock Park, Plainfield Township, Kent County, Michigan, by Coopersville State Bank, 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. BOARD OF GOVERNORS 004140q4 a' CO oop*. OF THE FEDERAL RESERVE SYSTEM Item No. 2 VZT/59 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD July 27, 1959 Board of Directors, The First State Bank of Petoskey, Petoskey, Michigan. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Chicago, the Board of Governors of the Federal Reserve System approves the establishment of a branch at 555 West Mitchell Street, Petoskey, Michigan, by The First State Bank of Petoskey, provided the branch is established within abc months from the date of this letter. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. A-4 BOARD OF GOVERNORS OF THE ,777-1 FEDERAL RESERVE SYSTEM 40,4 Item No. 3 7/27/59 WASHINGTON 25, D. C. ..!tuglet" ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD July 27, 1959 Board of Directors, Arnold Savings Bank, Arnold, Missouri. G entlemen: Pursuant to your request submitted through the Fe Feder al Reserve Bank of St. Louis, the Board of Governors Or the Federal Reserve System approves, under the provisions Of' Secti on 24A of the Federal Reserve Act, an addit inv ional estment in bank premises of $30,000 for the purpo se set forth your request to the Federal Reserve Bank of St. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 7/27/59 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE SOAR° July 27, 1959 Board of Directors, State Bank of Hawley ) Hawley, Minnesota. Gentlemen: The Federal Reserve Bank of Minneapolis has* forwarded to the Board of Governors your letter of July 14, 1959, and the accompanying resolution signifying your intent ion to withdraw from membership in the Federal Reserv e System and requesting waiver of the six months' notice of such withdr awal. In accordance with your request, the Board of Governors waives the requirement of six months' notice of withdrawal. Upon surrender to the Federal Reserv e Bank of Minneapolis of the Federal Reserve Bank stock issued to your institution, such stock will be canceled and appropriate refund will be made thereon. Under the provisions of Section 10(c) of the Board's Regulation H, Its amended effective September 1, 1952, your institution may accom121ish termination of its membership at any time within eight months I-rem the date the notice of intention to withdraw from member8hiP was given. It is requested that the certificate of membership be se nt to the Federal Reserve Bank of Minneapolis for disposition. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant secretary. 4 8OARD OF GOVERNORS OF THE: FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 5 7/27/59 OFFICIAL OCJI4f4L5FOtsiOENCE TO THE HOARD Ally 27, 1959 14r. Geo. C. Johnson, President, Exchant:e Investors, Inc., 100 South flerrill Street, Glendive, ,ontana. pear Nr. Johnson: This refers to the request contained in your letter of "arY 23, 1.59, submitted through the Pederal Iteserve Bank of 'p:Tloapoli n, for a determination by the Board of Governors of the Gieral Reserve SyStem as to Lite status of Vachang,e Investors Inc., 'endive, lonLana, as a holding company affiliate. Torun the infoemation supplied, the Board understan s that Z I a111;e Investors, Ine. in en-w:ed principally in the business of 11-11 48 agent for various inunrance companies; that V,xchan(Pe ezostors, Inc. owns 17,1100 of the 30,000 uotsLandio;- sliares of th n14011 stock of Thu A Oorado 1,iAjona1 Inuit, .1 Oortido, 1 anszis; and (chane Investors, inc. does not, directly or indirectly, own orat 11.:.: y stock or, or malawe or control, any banLinr lostitution7°1 - 0"Ir than The !1 slurado National Pank. In Allow Cr these Facts the liwird has dAcrwinod that _investors, Inc. is HA cn-ared, directty or indirectly, as 4 bus; the stock or, or mawierin!; or controllin=r, banks 4 nen In holdin h ' mea'tnr associations, savinos banks, or Urn 3U cnmpdnie;. l'ithin the mnended; and, acenlnii, of suction 2(c) of the flantinr; ,Ict of Pio, co:dinglY, 1,;:chatv, Investors, inc. is not de* mcd to be a holding, ah".'iliate except for the purposes of' section 23.1 of the noarral Pes..:rve Act, and does not need a votinr permit from the d of Governors in order to vote the bank Jiock uhich it owns. rfc, 4 Mr. Geo, . 1 Johnson If, however, the facts should at any time diff er from those Set out above to an extent *which wouLd indicate that Exchange Inve stors, Inc. might be deemed to be so enga ged, this matter should again be submitted to the Boar d. The Board reserves the right to rescind this determination and make a further determin ation of this matter at any time on the basi Of the then s existing facts. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. e BOARD OF GOVERNORS OF THE Item No. 6 FEDERAL RESERVE SYSTEM 7/27/59 WASHINGTON 25. D. C. attv044,, 0418. t,7 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD 440' July 27, 1959 Board of Directors, First State Bank and Trust Company, Bryan, Texas. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Dallas, the Board of Governors of the Federal Reserve System approves the establishment of a branch to be located 235 feet west Of your main office at 25th and Parker Streets in Bryan, Texas, 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. BOARD OF GOVERNORS 4011 rts4 4„, itcis%I COI;*0 OF THE * 4 FEDERAL RESERVE SYSTEM Item No. WASHINGTON 25, D. C. 7 7/27/59 ADDRESS orriciAL CORRESPONDENCE tt ...t9g.tt TO THE BOARD July 27, 1959 Mr. N. L. Armistead, Vice President, Federal Reserve Bank of Richmond, Richmond 13, Virginia. ear Mr Armistead: In accordance with the request contained in your letter of July 22, 1959, the Board approves the appointment of William Parry Slaughter as an assistant examiner for the Pederal Reserve Bank of Richmond effective today. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary.
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