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The attached set of minutes of the Board of Gove ors of the Federal Reserve System for July 29 1957, which you have previously initialed, has been amended at the request of Governor Mills to change the wording of the second full paragraph on the ninth page. Minutes for July 291 1957 To: Members of the Board From: Office of the Secretary Attached is a copy of the minutes of the of the Federal Reserve System on Governors of Board 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 1/ Gov. Vardaman Gov. Mills Gov, Robertson Gov. Balderston Gov. Shepardson 1/ In accordance with Governor Shepardson's memorandum of March 8, 1957, these minutes are not being sent to Governor Vardaman for initial. Minutes of actions taken by the Board of Governors of the Pederal Reserve System on Monday, July 29, 1957. The Board met in the Board Room at 2:30 p.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Martin, Chairman Balderston, Vice Chairman Szymczak Mills Shepardson Mr. Mr. Mr. Mr. Mr. Carpenter, Secretary Fauver„ Assistant Secretary Riefler, Assistant to the Chairman Thomas, Economic Adviser to the Board Molony, Special Assistant to the Board Messrs. Marget, Bangs, Dahl, Gemmill, Katz, Sammons, and Wood of the Division of International Finance Messrs. Noyes, Robinson, and Koch, Miss Burr, and Messrs. Brill, Eckert, Gehman, Trueblood, Miller, T. Smith, Wood, and Yager of the Division of Research and Statistics of economic developments. The staff of the Division Ofat ernational Finance presented a summary of international economic 4-0Pments following which the staff of the Research Division reviewed aevel 4-0Pments in the domestic economy. In summarizing the international situat4 -Lon, Iva% Marget indicated that there appeared to be some scattered evide nee of a slackening in demand pressures but the evidence was not 114 -rsal and there was no certainty that it would continue. Where elleh evidences existed they appeared not to be the result of a "boom" ug out, but rather the result of measures of restraint having been The domestic economy also showed mixed trends with activity °/"Atill 11J-ng at high level and further evidences of rising prices. 29/57 -2Following the economic review, all the members of the staff withdrew from the meeting except Messrs. Carpenter, Fauver, Riefler, 111°Illa8, Noyes, and Koch, and Messrs. Masters, Director, and Nelson, Assistant Director, Division of Examinations, and Mr. Solomon, Assistant General Counsel, entered the meeting. Discount rates. There were presented telegrams proposed to be sent to the following Federal Reserve Banks approving the establishment without change by the respective Banks on the dates indicated c't the rates of discount and purchase in their existing schedules: St. Louis San Francisco New York Cleveland Richmond Atlanta Chicago Minneapolis Kansas City Dallas July July July July July July July July July July 23 24 25 25 25 25 25 25 25 25 The telegrams were approved. unanimously. Items circulated to the Board. The following items, which had been c irculated to the members of the Board and copies of which are 4ttlIched to these minutes under the respective item numbers indicated, ' l I'e 2:k.Z.1 1. unanimously: Item No. Letter to The First National City Bank of bew Y?rk approving the establishment of a 4,1:11en in Valencia, Venezuela. (For trans'tal through the Federal Reserve Bank of eV York) 1 7/29/57 -3Item No. Letter to The Bridgeport-City Trust Company, B idgeport, Connecticut, approving the estabishment of a branch in South Norwalk, Connecticut, cident to a proposed merger of The South Norwalk *T1st Company into the applicant bank. (For transnilttal through the Federal Reserve Bank of New York) 2 etter to Dauphin Deposit Trust Company, Harrisburg, ,nnsylvania, consenting to a merger of People's Bank, Qteeiton, Pennsylvania, into the applicant bank and the , 1313r°ving establishment of a branch in Steelton by -e continuing bank. (For transmittal through the Federal Reserve Bank of Philadelphia) 3 Z Lett ' 11 to Jenkintown Bank and Trust Company, Jenkintown, i-11115Ylvania, approving the establishment of a branch In , Abiagton Township, Montgomery County. (For trans"tal through the Federal Reserve Bank of Philadelphia) 4 ,Ltetter to the Federal Reserve Bank of Philadelphia exthe time within which The Reading Trust Company, ceading, Pennsylvania, may establish a branch at the orner of Fifth and Cherry Streets. 5 ' , etter to the Comptroller of the Currency submitting an ' c orable recommendation with respect to an appliilatlon to organize a national bank at Point Pleasant, BT Virginia. (With a copy to the Federal Reserve -.414 of Richmond) 6 l&randum from the Division of Personnel Administration ending a program for recognition of persons who e from the Board's staff. 7 °1 ' cler to be published in the Federal Register granting o4 eXtension to May 1, 1958, of time within which Brent vcrt:I°n Companies shall acquire a majority of the ltIC shares of the proposed South Des Moines National / Des Moines, Iowa. 8 Additional investment in bank premises by Liberty Bank of New York (Item No. 9). The Secretary referred to an ir)n( )a4-2 t 7/29/57 -4- 8.13Plication submitted by the Liberty Bank of Buffalo, New York,for authority, under the provisions of Section 24A of the Federal Reserve Act, to make an additional investment in bank premises in the amount °f $22,000. The file was brought up for consideration at this meeting since the bpink's option on the property which it wished to buy would elcPire on August 1, 1957. After the circumstances involving the aapPlication were outlined, the Chairman suggested that the file be circulated among the members of the Board and that the letter attached hereto as Item No. 9 be regarded as approved in the absence of objection cm the part of a member of the Board. The Chairman's suggestion was unanimously. Secretary's Note: The file was circulated in accordance with the above action of the Board and, the members of the Board having approved the proposed letter, it was sent under date of July 30, 1957. plication to organize national bank at AlmedaLLEa2. A l'eqUest had been received from the Comptroller of the Currency for a zlecommendation by the Board with respect to an application to establish national bank at Almeda, Texas, an unincorporated community on the southern fringe of Houston. Ilecleral Reserve Bank On the basis of a field investigation, the of Dallas concluded adversely with regard to pro- 8Pective earnings of the enterprise'and considered the question of conIrezilerice and need of the community for the bank a borderline one. In 2094 7/29/57 -5- taking the position that the application was premature, at best, the Reserve Bank indicated that its thinking was influenced by the fact that the Bank of the Southwest, National Association, of Houston, of which the Almeda bank would be an affiliate, had engaged in a program of establishing a number of outlying affiliated banks to serve as feeder institutions for the parent bank rather than to supply a real Ileed for banking facilities in the areas concerned. In addition, it noted that an application for a State charter had been filed by substantially the same group, that an unfavorable recommendation was Ink/de by investigating examiners for the Federal Deposit Insurance Corporation and the State banking authorities, and that the application then vas withdrawn without formal action on the part of the State authorities. In appraising the report of the Dallas Reserve Bank, Mr. Nelson, Assistant Director of the Division of Examinations, talked by telephone vith vice President Pondrom, who agreed that the proposed bank's capital 14/°Uld be adequate, that the management would be satisfactory, and that the bank apparently could operate satisfactorily. However, after rethe factors that had led the Reserve Bank to suggest an unfa11°I.able recommendation, Mr. Pondram indicated that there had been no hari€e in the situation which would cause the Reserve Bank to regard the application more favorably. On the other hand, it appeared that 7/29/57 -6- the Bank would not be greatly concerned if the application were to be a pproved. With the file the Division of Examinations submitted for the Board's consideration a draft of letter to the Comptroller of the Currency which, after citing the favorable and unfavorable aspects of the application, would express the opinion that the facts were not stIch as to warrant an adverse recommendation. When the file was in circulation to the Board, Governor Balderston appended a note in which he inquired whether the evidence was believed to be clear enough for the T1. , , - 0ard to make a recommendation contrary to the advice of the Dallas Reserve Bank. At the Chairman's request Mr. Masters reviewed again the circumtal es surrounding this case and reiterated the recommendation of the Division of Examinations that approval be given despite the contrary 11°sition of the Dallas Bank. The Chairman referred to the policy of the Bc'ard not to take action contrary to the recommendation of the Ileciel'al Reserve Bank without giving the Bank an opportunity to be healiol or sUbmit further comment. le The Secretary stated that, in accord- with that policy, if the Board felt that the application should be 4PProved the Federal Reserve Bank of Dallas would be given such an Portunity. °I ) Governor Shepardson said that from his personal knowledge of the situation in the Almeda area, he had some question about the need 7/29/57 -7- for another bank at this time, although one might easily be justified in two or three years at the rate the community was expanding. At the conclusion of the discussion, it was agreed to post13°Ile final action until the matter had been discussed further with Pl'esident Irons who was in Washington. The Chairman then referred to a call he had received during the meeting from Senator McClellan of Arkansas relating to the appli- cation for a branch which had been filed by the Worthen Bank and Trust Cc°13anY of Little Rock, Arkansas. Mr. Nelson stated that this matter was now in circulation to the members of the Board with a recommendation that the branch be al3Proved. It was understood that Mr. Nelson would prepare a memorandum setting forth the facts which could be used as a basis for a reply by the Chairman to Senator McClellan. adequacy of bank capital (Item No. 10). In a letter adaressed to Mr. Hackley, General Counsel, under date of July 19, 1957, Ni'. E. lie417 Powell, General Secretary of the Savings Banks Association of th State of New York, inquired what tests the Federal Reserve was 4131Y1ng to bank capital and in what way The Continental Bank and Trust C°141334Y, Salt Lake City, Utah, had failed to meet these tests. A proposed reply, which had been circulated to the members of the B °arc', would be in the form hereafter referred to except that it enclose a copy of the form for analyzing bank capital used by the 04 . AArision of Examinations in connection with consideration of problems l'eexcling the adequacy of bank capital. 20'47 7/29/57 -8When the file was in circulation, Governor Mills raised a Vestion concerning the advisability of transmitting a copy of the torm for analyzing bank capital, stating that to supply the form might suggest that conclusive importance in determining a bank's caPital adequacy was placed on the application of the formula vhereas that particular in the Continental hearings, it was stressed character of management and (polity of assets outrank the tcirimala approach. He also felt that there might be justification tc)r Providing the form for the use of a supervisory authority, but that this would not hold true with respect to a banking association. Other members of the Board who received the file after Governor mills hwa attached his note indicated that they concurred in his views. Accordingly, the proposed reply was unanimously approved, the form attached as Item No. 10 with the paragraph relating to the form deleted. . Study of the financing problems of small business (Item No. 11). h irman Martin referred to a letter from Senator FUlbright, Chairman Of the Banking and Currency Committee, a copy of which is attached to the minutes as Item No. 11. At Chairman Martin's request, copies Of the letter from Senator Fulbright had been distributed to the Other members of the Board. Mr. Noyes commented briefly on the progress made by the special Stem committee 1ookin6 into the feasibility of a small business study. e °Mmcnted that the committee should be ready to submit a possible 2n .4S 7/29/57 -9- outline for the requested study to the Board within a day or two, and that the reply to Senator Fulbright might be delayed pending the Board's consideration of the outline. Mr. Thomas suggested that the Reserve Bank Presidents be given 44 oPPortunity to consider the outline of the study before final approval by the Board, pointing out that in the past Presidents had expressed some feeling about System projects being undertaken without giving the Reserve Banks an opportunity to comment. During the discussion Governor Mills mentioned that he had had 4 telephone call from Mr. Walter French of the American Bankers Asso- ciation reporting that the Association considered such a study very 11°I.th while and that its cooperation in carrying it out could be c°114ted upon. Governor Mills also mentioned that reference to Senator F'Illbright's letter had been published in the American Banker. It was understood that the Board would consider the matter tUXther after outline for the study was available. The meeting then adjourned. Secretary's Notes: Pursuant to recommendations contained in memoranda from appropriate individuals concerned, Governor Shepardson approved on behalf of the Board on July 25, 1957, the following actions regarding the Board's staff: intment othrYn A. Jackson as Statistical Clerk, Division of Bank Operations, vithla she salary at the rate of 4;3,415 per annum, effective the date assumes her duties. 2099 7/29/57 -10- -.f.1.1.anlincreasest_effective July 28? 1957 1.19.112....nd title Division Basic annual salary To From Office of the Secretary erie D. Lewis, Clerk valdred E. Pilger, General Assistant 1/ Elizabeth P. Vanni, Minutes Clerk ( f)3,811.0 5,780 3,670 $4,080 5,980 3,755 4)345 41480 5,160 8)430 5,295 8,645 Research and Statistics a()melia J. Motheral, Statistical Assistant Bank Operations 11?..riorie F. Jones, Statistical Assistant (341 N. Kiley, Jr., Technical Assistant On July 26, 1957, Governor Shepardson approved on behalf of the Board a letter to the Federal Reserve Bank of Cleveland approving the designation of 13 persons as special assistant examiners. A copy of the letter is attached hereto as Item No. 12. Governor Shepardson noted on behalf of the Board on July 26, 1957, a memorandum dated July 22, 1957, from Mr. Johnson, Controller, advising that Josephine E. Lally, Deputy Disbursing Officer in the Office of the Controller) had applied for retirement under the Retirement System of the Federal Reserve Banks effective August 1, 1957. On July 29, 1957, Governor Shepardson approved on behalf of the Board the designation of Miss Susan Burr, Assistant Director, Division of Research and Statistics, to represent the Board at the President's Conference on Technical and 1/ Te mporary change in title from Supervisor, Administrative, Subject, FOMC Files, for a period of approximately three months, after /Lacql she will return to the previous position. 7/29/57 11Distribution Research for the Benefit of Small Business to be held in Washington on September 24-26, 1957. A copy of the letter to the Office of the Executive Director of the Conference advising of this designation is attached hereto as Item No. 13. etary 21(1 BOARD OF GOVERNORS 4,,txt1 tr* teAD fit4 OF THE 0(4,: , 0% '14> 0 og 111 Item No. 1 7/29/57 FEDERAL RESERVE SYSTEM WASHINGTON 25, ID. C. ; 4 ADDRESS OFFICIAL CORRESPONDENCE 4 TO THE BOARD c17 ,:tt tat 444*** July 29, 1957 The First National City Bank of New York, 55 Wall Street, New York, New York. Gentlemen: The Board of Governors of the Federal Reserve System authorizes The First NationAl City Bank of New York, New York, New York, pursuant to the provisions of Section 25 of the Federal Reserve Act, to establish a branch in Valencia, Venezuela, to be located at the corner of Avenida Constitucion and Avenida Independencial Valencia, and to operate and maintain such branch subEiet to the provisions of such Section; upon condition that, unless the branch is actually established and opened for business on or 1.'efore August 1, 1958, all rights granted hereby shall be deemed 0 have been abandoned, and the authority hereby granted shall automatically terminate on such date. Please advise the Board of Governors in writing, through the Federal Fe Reserve Bank of New York, when the branch is established a2.c1. opened for business. It is understood, of course, that no nge will be made in the location of such branch without the prior aPproval of the Board of Governors. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. 2102 BOARD OF GOVERNORS Item No. 2 OF THE 7/29/57 FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD July 29, 1957 Board of Directors, The Bridgeport-City Trust Company, Bridgeport 2, Connecticut. G entlemen: Pursuant to your request submitted through the FeA ,,eral Reserve Bank of New York, the Board of Governors of the Federal Reserve System approves the establishment °I a branch at 93 Washington Street, South Norwalk, 1C3onnect1cut, by The Bridgeport-City Trust Company, ridgeport, Connecticut, incident to the proposed merger °f The South Norwalk Trust Company, South Norwalk, rnnecticut, with and into The Bridgeport-City Trust , °mPanY under the new corporate title "City Trust Company," ar idgeport, Connecticut, provided (a) the merger is effected substantially in accordance with the agreement of rirrger dated July 17, 1957, submitted through the Federal "u-serve Bank of New York, and (b) the merger and establish! nt of the branch is accomplished within six months from 'ne date of this letter. T Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. , BOARD OF GOVERNORS OF THE Item No. 3 FEDERAL RESERVE SYSTEM 7/29/57 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD July 29, 1957 Board of Directors, 11,"Phin Deposit Trust Company, na rrisburg, Pennsylvania. Gentlemen : Pursuant to your request submitted through the Federal Reserve Bank of Philadelphia, the Board of Governors : f the Federal Reserve System hereby gives its consent under 2etion 18(c) of the Federal Deposit Insurance Act to the rger of People's Bank, Steelton, Pennsylvania, with and into aauPhin Deposit Trust Company, Harrisburg, Pennsylvania, and cPProves the establishment of a branch in Steelton by the nuing bank at the present location of People's Bank, vided (1) the transactions are effected substantiPily in 19%rdance with the agreement between the parties dated May 27, and completed within six months from the date of this :tter 3 and (2) shares of dissenting stockholders of the !_nstituent corporations which may be acquired by the continuing rrporation are sold within six months from the date of such ttc quisition. iT r Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. 2104 BOARD OF GOVERNORS *;7 1 / OF THE Item No. 4 '4 # FEDERAL RESERVE SYSTEM 7/29/57 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD 4*?(,kttdOti ' 44404 July 29, 1957 Board of Directors, Jenkintown Bank and Trust Company, Jenkintown, Pennsylvania. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Philadelphia, the Board .t) Governors of the Federal Reserve System approves ! ( "e establishment of a branch by the Jenkintown Bank ed Trust Company, Jenkintown, Pennsylvania, in the ,neon-East Apartments, located on the northwest cor.'..'er of the intersection of Old York and Township Line Roads in Abington Township, Montgomery County, er i. )nanvania, provided the branch is established withOne year from the date of this letter, and approval given 1— the State authorities is effective as of the , 4a6e it is established. r Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. 2105 BOARD OF GOVERNORS Item No. 5 7/29/57 OF THE FEDERAL RESERVE SYSTEM A* WASHINGTON 25, D. C. AOORESS OFFICIAL CORRESPONDENCE tatItc, '7 440A** TO THE BOARD July 29, 1957 14r. E. C. Hill, Vice President, Federal Reserve Bank of Philadelphia, Philadelphia 1, Pennsylvania. te Mr. Hill: In view of the circumstances outlined in your letter of July 18, 19571 the Board of Governors extends 1 February 28, 1958, the time within which The Reading trust Company, Reading, Pennsylvania, may establish an 0"t°wn branch at the southwest corner of Fifth and Cherry nrtets, under the authorization contained in the Board's -Letter of February 28, 19.57. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. 21()G BOARD OF GOVERNORS 0000,4 440744:Vq OF THE :$ o. * Item No. 6 7/29/57 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE 64, P \4014t Nati't;4.4° 44444.0* TO THE BOARD July 29, 1957 C°1'nPtroller of the Currency, Treas.— Department, 144sningt0n 251 D. C. Attention Mr. W. M. Taylor, Deputy Comptroller of the Currency. Dear Mr. Comptroller: Reference is made to a letter from your office dated NV 23 a nm_i i 1957, enclosing copies of an application to organize a r-..Lonal bank at Point Pleasant, West Virginia, and requesting ee°11Inendation as to whether or not the application should be aPPrQved. A report of investigation of the application made by esentative of the Federal Reserve Bank of Richmond indicates that bas the Proposed capital structure of the bank would be adequate thaZ1 uPon the volume of business anticipated. However, it appears .1.1e Prospects for profitable operations of the bank are not lavorable, the proposed active management is lacking in the ..:711-ence necessary to assure sound administration of its affairs, ;1 : 10 there is not a sufficient need for another bank at Point ait:sant at this time. In view of the unfavorable factors in this recorn icm, the Board of Governors does not feel justified in -"tending approval of the application. a rePr The Board's Division of Examinations will be glad to dlscus offic e,a4Y aspects of this case with representatives of your e lf you so desire. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. BOARD OF GOVERNORS 210 If Or THE ffi FEDERAL RESERVE SYSTEM Correspondence Board of Governors ee Pt Mae Item No. 7 7/29/57 July 23, 1957 Subject: Recognition Program-...Receptions 47ision of Personnel Administration for Retiring Employees Ftec2etion It is recommended that effective immediately a recognition %ogram be to provide for a reception for each member of 0,,e Board's staff at the time of his or her retirement and that the ,-s,k,.of each reception be paid out of Board funds, not to exceed apProximately 05. The proposed program is outlined below. Pro osed Program for Handling Receptions 1. The reception will be planned by the Division in Which the individual is employed. This will include arranging the time and place as well as negotiations with the cafeteria. The Division of Personnel Administration will be available for consultation and will review the Plans to assure that no inequities will arise in connection with these receptions. 2. There will be no distinction between the official and nonofficial staff in determining the size and type of receptions. It is generally expected that the Division Planning the reception will be able to determine the approximate number of persons who might attend. 3. The cost for the reception will cover refreshments ancluding the normal mark-up), overtime for cafeteria employees, and incidentals such as flowers, paper cups, naPkins, laundering table linens, corsages, etc. It. The receptions will generally be held in the staff dining room or in the cafeteria as determined by the Division planning the reception. It is expected that in a few instances, because of the personal request of the employee retiring, it may be preferable to have a small reception in an office in one of the Divisions or in some Eases an individual may request that no reception be given. If such should be the case the employee's request would be rec ognized. S. The Division of Personnel Administration will provide in its budget for the cost of these receptions. 08 To: Board of Governors -2- There is no provision in the 1957 budget for receptions paid for this year. This Division will be responsible for approval of the estimated cost before each reception and will approve the actual cost for functioning by the Office of the Controller. Three retirements at age sixty-five are scheduled in 1957, one of which (Mr. Sloan) has occurred. In addition, there are six retirements prior to age sixtyfive expected at this time, two of which (Messrs. Vest and Stone) have occurred. The cost for the three receptions held this far in this year, for which the Board paid in accordance with Board approval, totaled $195.66. The cost for the six others scheduled would not exceed approximately $450, with the total for all receptions of this type in 1957 being approximately $650. Two retirements at age sixty-five are scheduled in 1958; six in 1959; six in 1960; and, 12 in 1961. There will be an additional number resulting from early or disability retirements. 4109 Item No. 8 UNITW STATES OF AMERICA 7/29/57 BEFORE THE WARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM AISHIMION, D. C. IN THE MATER OF THE APPLICATION OF BitarroN COMPANIES R)R APEROVAL PURSUANT ID SECTION 3(a)(2) OF BANK HOLDING COMPANY ACT OF 1956 ORDER EXTENDING TIME FOR COMPLETION OF ACQUISITION OF VDTING SHARES OF SOUTH DES MOINES NATIONAL BANK In the matter of the application of Brenton Companies for 41)Prc)val: of acquisition of voting shares of South Des Moines National Bank) Des Moines, Iowa. The above matter having come before the Board on the application of Brenton Companies, Dee Moines, Iowa, dated January 10, 1957; filed pursuant to the provisions of section 3(a)(2) of the Bank Rold itig Company Act of 1956, for prior approval of acquisition by Brep% On Companies of direct ownership of Si per cent to 95 per cent Of a total of 2,000 voting shares of the proposed South Des Moines Nation al Bank, Des Moines, Iowa, and it appearing after due consideration thereof in the light of the factors enumerated in section 3(c) of the I3ank Holding Company Act of 1956 that such application should be And such Application having been granted pursuant to Order Ot the Board, dated July 1, 1957, provided the acquisition is comPlated within three months from the date of the Board's Order, IT IS HEREBY ORDERED, That the time in which such acquisition 1114Y be completed is extended to May 10 1958. This 29th day of July, 1957. BY order of the Board of Gave ors. (SEAL) (Signed) S. R. Carpenter S. R. Carpenter, Secretary. 2111 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 9 7/29/57 WASHINGTON 25, D. C. ADDRESS OFFICIAL. CORRESOONOENCE TO TI-IE BOARD July 30, 1957 lire A. Phelan, Vice President, Federal Reserve Bank of New York, llew York 45, New York. Dear Mr. Phelan: Reference is made to your letter of July 23, 1957, 3ubmitting , with a favorable recommendation the request of the sib!rtY Bank of Buffalo, Buffalo, New York, for approval under veebion 24A of the Federal Reserve Act of an additional in— estment of $22,000 in bank premises for the purpose of ac— Iiring and improving a parking lot for use by customers of , South Park Office. Under previous approvals given by the Boa rd of Governors, the bank's depreciated investment in bank to $2,927,400 and exceeds its capital by un 9177lni e ses now amounts 6 ,400. 1 T The Board of Governors has given consideration to the4 submitted and approves the additional in— J-nformation V a stmt of $22,000 by the Liberty Bank of Buffalo for the ! u°ve described purpose. Please advise the bank accordingly. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. 112 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 10 7/29/57 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE SOARO July 29, 1957 E. Henry Powell, General Secretary, he Savings Bank Association of the State of New York, 110 East 42nd Street, New York 17, New York. Dear Mr. Powell: This refers to your letter of July 19, 1957, addressed Hackley, General Counsel, regarding the question of the a.cle quacy of bank capital, particularly in connection with the uertr4 -Lngs concerning The Continental Bank and Trust Company of oalt Lake City, Utah. It is believed that it would not be appropriate for Board to express views with respect to the adequacy or in41equacY of the capital of a particular bank, expecially in a 'lse such as that involving The Continental Bank and Trust hnlanY. In this case, evidence is being presented before a r-aring examiner and the matter will later come before the Board 017 decision. Copies of the transcript in the proceeding may be p_tained from Reporter Clair Johnson, Certified Shorthand .:aporter, 2582 Kensington Avenue, Salt Lake City 8, Utah, or transcript may be examined at the offices of the Board in washingtone the Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. 11ClOsure 4 J. W. rtn.anicHrr, ARK.. CHAIRMAN J.ptSON VA. N 4 INLA MER E. CAPEHART. IND. EAR LH JOHN W.['RICKER. DEL. OHIO WALLACE PRAIN F.BENNETT', UTAH MONRON • kZt, PRESCOTT GUSH.CONN. AUst, OKLA. 4 S. J. GLENN ciAnti.%1AO.RIO UEALL. MD. F,REDERICK G. PAYNE. MAINE CLIFFORD P. CA.SE, N.J. tollui`PNGLING. CHIEF N'T A. CLERK WALLACE, STAFF DIRIXTOR 9.Jertiteb fntczZenate Item No. 11 7/29/57 COMMITTEE ON BANKING AND CURRENCY July 25, 1957 1 11. William McChesney Martin, Jr. ,_ Luairman, Board of Governors Pederal Reserve System Washi-ngton 25, D. C. Dear Mr. Chairman: You will recall our discussions in my office and during Your testimony before this Committee on June 20 about the financing Probl Re m. of small business and the proposed study by the Federal sereve Board. on ju, This matter was discussed at the meeting of the Committee it 'Y 9. No formal action was taken by the Committee, but I think vel4s the general consensus, and certainly it is my view, that we e°me the proposed study by the Federal Reserve Board. You will also recall that the Committee has had before it a 414nber slow_ of bills dealing with this problem, including S. 2160 (Senator vier Linarl and others) and S. 2286, which I introduced. These bills oth :the subject of hearings, along with legislation extending and plittrI/ise dealing with the Small Business Administration. The Comsmair has reported a bill providing for a one year extension of the pas,'` Business Administration on the understanding that the Househe e(1b ll on the same subject and other legislation dealing with or j eneral problem will be considered again early in the next session h4ve-n8ress. For this reason, it would be very helpful if we could a report from you on the results of your study by March 1, 1958. body It is my view that there is already in existence a great Q(4111t°1 'information showing a 6ap in the credit structure of this and mrY in the availability of equity and long term capital for smalllibic-1:edilAm-size business. I would hope, therefore, that the study by vi; You undertake will devote itself primarily to finding a means to th!eI2 this gap may be filled and that you will be able to recommend opini- kdommittee specific legislation for this purpose. My personal le °II is that S. 2160 and S. 2286 constitute a basis for such eislation. Sincerely yours, ' 4:ye Chairman BOARD OF GOVERNORS e OF THE Oka Item No. 12 7/29/57 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. ADDRESS '4,4,4trot orriciAL CORRESPONDENCE TO THE MORRO -44otp0" July 26, 1957 Mr. Paul C. Stetzelberger, Vice President, Federal Reserve Bank of Cleveland, Cleveland 1, Ohio, Dear Mr. Stetzelberger: In accordance with the request contained in your letter of July 22, 1957, the Board approves the designation of the following named individuals as special assistant examiners for the Federal Reserve Bank of Cleveland: Louis R. Chalfant Donald G. Gilbert Charles C. Glass Robert Groh Douglas Haney Richard Howard 011ie McEntyre Ralph E. Perry Thomas Petroze Herbert Plogman Gene A. Smith Robert Smith Walter H. Woods Appropriate notations have been made on our records (It the names to be deleted from the list of special assistant eX aminers. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. 9115 BOARD OF GOVERNORS 4. 00tro, t4 OF THE ret0"4*4 ,0 v0.4 81 Item No. 13 7/29/57 FEDERAL RESERVE SYSTEM X* WASHINGTON 25. D. C. 0 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD 4 M.t 400*** July 31, 17,57 "tics of the Executive Director, President's Conference on Technical and Distribution Research for the Benefit of Small Business, Room 4805, U. S. Commerce Department Building, Washington 25, D. C. Gentlemen: This is in reply to the inquiry of Mt. Charles W. Smith, Chairman of the Invitation Committee of the President's Conference on Technical and Distribution Research for the Banefit of Small Business, to Chairman Martin inquiring whether the Federal Reserve System would care to have a mber of its staff attend the Conference. The Board would Pleased if an invitation could be extended to Miss Susan S. Assistant Director of the Division of Research and Statistics. Miss Burr is thoroughly familiar with System publicat!ons as well as various kinds of System research which might Of special value to small business. t Sincerely yours, (Signed) S. 'J. Carpenter S. R. Carpenter, Secretary.
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