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Minutes for To: Members of the Board From: Office of the Secretary July 7, 1958 Attached is a copy of the minutes of the rs of the Federal Reserve System on Governo of Board the above date. It is not proposed to include a statement with respect to any of the entries in this set of minr:tes 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 , it will be appreciated if you will minutes to the 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 1/ Gov. Mills Gov. Robertson Gov. Balderston y 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. 1948 Minutes of the Board of Governors of the Federal Reserve System on Monday, July 7, 1958. PRESENT: The Board met in the Board Room at 10:00 a.m. Mr. Martin, Chairman Mr. Szymczak Mr. Mills Mr. Shepardson Mr. Mr. Mr. Mr. Mr. Carpenter, Secretary Kenyon, Assistant Secretary Fauver, Assistant Secretary Riefler, Assistant to the Chairman Thomas, Economic Adviser to the Board Messrs. Young, Garfield, Robinson, Koch, Dembitz, Brill, Eckert, Altmann, Keir, T. Smith, Trueblood, Wernick, Wood, and Yager of the Division of Research and Statistics Messrs. Marget, Furth, Hersey, Bangs, Wood, Maroni, Reynolds, and Westebbe of the Division of International Finance Mt. Rainey, Assistant Vice President, Federal Reserve Bank of Atlanta Economic review. In summarizing the review of international trade and financial developments which was presented by the Division of International Finance, Mr. Marget said the picture was hardly one to suggest that general recession in foreign countries was a likely prospect or to indicate that developments abroad would be such as to offset whatever Internal forces might contribute to a stzengthening of the economic situation in this country. The domestic review presented by the Division of Research and Statistics revealed further evidence of stable or rising production, With a leveling in consumer prices. -2- 7 7 58 All of the members of the staff except Messrs. Carpenter and Kenyon then withdrew and Messrs. Hackley, General Counsel; Johnson, Director, Division of Personnel Administration; Hostrup, Assistant Director, Division of Examinations; and Hurting, Review Examiner, Division of Examinations, entered the room. Items circulated to the members of 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, were approved unanimously: Item. No. Letter to the First National Bank in Henderson, Henderson, North Carolina, approving its application for fiduciary powers. (For transmittal through the Federal Reserve Bank of Richmond) Letter to The Emmet County State Bank, Harbor Springs, Michigan, granting its request for permission to exercise fiduciary powers. (For transmittal through the Federal Reserve Bank of Chicago) Letter to The First National Bank of Clarion, Clarion, Iowa, approving its application for fiduciary powers. (For transmittal through the Federal Reserve Bank of Chicago) Letter to the Secretary of the Retirement System of the Federal Reserve Banks interposing no Objection to increasing the benefits under the Board Plan in order to conform to the increased benefits provided members and survivors of members of the Civil Service Retirement System by Public Law 85-465, 85th Congress. 1 1950 -j- 7/7/58 Discount rates. Unanimous approval was given to telegrams to the Federal Reserve Banks of New York, Philadelphia, and Minneapolis approving the establishment without change by those Banks on July 3, 1958, of the rates on discounts and advances in their existing schedules. The meeting then adjourned. Secretary's Notes: Governor Shepardson approved on behalf of the Board on the dates indicated the following items: July 1 Memorandum dated June 25, 1958, from Mr. Young, Director, Division of Research and Statistics) recommending the appointment of Eva J. Mason as Statistical Clerk in that Division, with basic annual salary at the rate of $3,590, effective the date she assumes her duties. Governor Shepardson approved this item as a conditional appointment, with continuance of employment to depend on effective performance of duties. July 2 Memoranda from appropriate individuals concerned, transmitted with memoranda from the Division of Personnel Administration dated June 20, end June 24, 1958, recommending meritorious salary increases in the amounts indicated for the following persons on the Board's staff, effective July 13, 1958: Division Name and title Basic annual salary 1 From To -..... - Board Members' Offices Iola B. Morgan, Secretary Bernice T. Mann, Secretary $4,755 4,485 $4,890 14.,620 3,415 3,500 14,350 3,500 4,215 3,814.0 Office of the Secretary Ruth W. Eschmeyer, Records Clerk Zoe Gratsias, Secretary Ave Mae Landes, Records Clerk Sudelle Rice, Indexing and Reference Assistant Elizabeth P. Vanni, Minutes Clerk 4,215 3,415 4,080 3,755 1/ Subject to adjustment for the general pay increase approved by the Board. 1951 -4- 7/7/58 Salary increases, effective July 13, 1958 (continued) Name and title Division Basic annual salary To From _ Legal John E. Hogan, Legal Assistant 5,575 $ 5,710 9,635 9,850 9,420 9,420 8,990 9,635 9,635 9,205 8,000 7,570 6,820 6,820 5,710 4,660 41 350 3,670 3,500 8,215 7,785 7,035 7,035 5,845 4,795 4,485 3,805 3,585 3,670 5,575 8,990 4,075 4,210 7,785 3,805 5,710 9,205 4,210 4,345 8,000 11,610 11,610 7,570 7,785 7,785 6,820 11,880 11,880 7,785 8,000 8,0oo 7,035 $ Research and Statistics Maurice H. Schwartz, Chief Analyst, Statistical Operations Planning Unit Eleanor S. Frase, Economist Paul F. Smith, Economist Marie Butler Leven, Chief, Economic Editing Unit Gerald F. Millea, Chief, Administration Section Murray Altmann, Economist J. Cortland G. Peret, Economist Elizabeth Ann Pike Ulrey, Economist Nancy H. Teeters, Economist Anne English Stewart, Librarian Mary J. Katinas, Secretary Jo Ann L. Murray, Secretary Gail Roberts, Clerk-Stenographer International Finance Mary V. F. Baker, Senior Clerk Henry N. Goldstein, Economist Gordon B. Grimwood, Economist Katherine P. Hichborn, Secretary Nyart S. Sharigan, Secretary Richard M. Westebbe, Economist Examinations J. Frank Holahan, Supervisory Review Examiner Andrew N. Thompson, Supervisory Review Examiner John N. Lyon, Federal Reserve Examiner John T. McClintock, Review Examiner John M. Poundstone, Federal Reserve Examiner Elmer W. Lyster, Federal Reserve Examiner 1/ Subject to adjustment for the general pay increase approved by the Board. 7/7/58 -5- Salary increases, effective July 13, 1958 (continued) Name and title Division Basic annual salary lj To From Examinations Att W. Hammons, Jr., Assistant Federal Reserve Examiner Francis J. McGarvey, Assistant Federal Reserve Examiner Harry G. Felix, Assistant Federal Reserve Examiner Alex J. Harris, Jr., Assistant Federal Reserve Examiner Peggy Ann Long, Secretary Ann C. Tompros, Special Assistant Federal Reserve Examiner $5,575 $5,710 5,710 5,845 4,525 4,795 4,525 4,660 4,215 3,940 4,350 4,075 5,200 4,485 3,670 3,430 5,335 4,623 3,755 3,515 8,000 4,755 4,755 5,440 3,585 8,215 4,890 4,890 5,575 3,670 7,785 8,000 3,300 3,030 3,385 3/115 4,525 5,065 4,525 4,660 5,200 14,660 Bank Operations Eleanor E. Omohundro, Secretary James A. McIntosh, Jr., Analyst Barbara Joan Wrenn, Statistical Clerk L. Marie Phipps, Clerk-Typist Personnel Administration John J. Hart, Personnel Assistant Gena Gander, Personnel Clerk Billie Jo Hickman, Personnel Clerk Nathan B. Hughes, Jr., Personnel Technician Sada Ann Weitzell, Clerk-Stenographer Administrative Services Davis H. Wilson, Chief, Automatic Data Processing and Telegraph Services Esmond C. Langley, Assistant Head Messenger Robert I. Stewart, Messenger Office of the Controller Jean S. Glascock, Secretary Susie T. Oros, Disbursing Assistant L. Waite Waller, Jr., Accounting Technician 1/ Subject to adjustment for the general pay increase approved by the Board. 7/7/58 -6- Letter to the Federal Reserve Bank of New York (attached Item No. 5) approving the appointment of eight persons as assistant examiners. Letter to the Federal Reserve Bank of San Francisco (attached Item No. approving the designation of ten persons as special assistant examiners. 6) Letters to the Federal Reserve Bank of Chicago (attached Items 7 and 8) approving the appointment of IL Edwin Demoney, Jr., Franklin D. Dreyer, and M. Welby Taylor as assistant examiners. 62,ecretary BOARD OF GOVERNORS OF THE 440 co Qui Item No. 1 7/7/58 FEDERAL RESERVE SYSTEM VVY WASHINGTON 25. D. C. I . ADDRESS orriciAL CORRESPONDENCE t7 TO THE BOARD *1'4,411 July 7, 1958 Board of Directors, First National Bank in Henderson, Henderson, North Carolina. Gentlemen: The Board of Governors of the Federal Reserve System has given consideration to your application for fiduciary powers and grants you authority to act, when not in contravention of State or local law, as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics, or in any other fiduciary capacity in which State banks, trust companies or other corporations which come into competition with national banks are permitted to act under the laws of the State of North Carolina, the exercise of all such rights to be subject to the provisions of section 11(k) of the Federal Reserv,1 Act and Regulation F of the Board of Governors of the Federal Reserve System. A formal certificate indicating the fiduciary powers which the First National Bank in Henderson is now authorized to exercise will be forwarded to you in due course. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. 195' IL) BOARD OF GOVERNORS , CO' Gey 44 .......„. 40 * * * OF THE FEDERAL RESERVE SYSTEM 0 * 7/7/58 WASHINGTON 25. D. * * *40 Item No. 2 C.uj AOOREIIIS orrIcom. CIORIREIIPONOENCE TO THE OCIANO *4 1.N01. *044** July 7, 1958 Board of Directors, The Emmet County State Bank, Harbor Springs, flichigan. Gentlemen: This refers to your request for permission, under applicable provisions of your condition of membership numbered 1, to exercise fiduciary powers. Following consideration of the information submitted, the Board of Governors of the Federal Reserve System grants permission to The Emmet County State Bank to exercise the fiduciary powers now or hereafter authorized under the terms of its Articles of Incorporation and the laws of the State of Michigan. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. 1R54-) BOARD OF GOVERNORS OF THE Item No. 3 FEDERAL RESERVE SYSTEM 7/7/58 WASHINGTON 25, D. C. AODRESS OFFICIAL CORRESPONDENCE TO THE SOAR° July 7, 1958 Board of Directors, The First National Bank of Clarion, Clarion, Iowa. Gentlemen: The Board of Governors of the Federal Reserve System has given consideration to your application for fiduciary powers and grants you authority to act, when not in contravention of State or local law, as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics, or in any other fiduciary capacity in which State banks, trust companies or other corporations which come into competition with national banks are permitted to act under the laws of the State of Iowa, the exorcise of all such rights to be subject to the provisions of section 11(k) of the Federal Reserve Act and Regulation F of the Board of Governors of the Federal Reserve System. A formal certificate indicating the fiduciary pouors uhich The First National Bank of Clarion is now authori%ed to exercise will be forwarded to you in due course. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. BOARD OF GOVERNORS OF THE Item No. FEDERAL RESERVE SYSTEM 4 7/7/58 WASHINGTON 25. O. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD ,4va.st ot, July 7, 1958 Mrs. Valerie R. Frank, Secretary of the Retirement System of the Federal Reserve Banks, Federal Reserve Bank of New York, New York 45, New York. Dear Mrs. Frank: The Board of Governors interposes no objection to increasing the benefits under the Board Plan of the Retirement System of the Federal Reserve Banks in order to conform to the increased benefits provided members and survivors of members of the Civil Service Retiremen System by Public Law 85-465, 85th Congress. As it is desired to pay for the cost of these additional benefits from August 1, 1958, through the period ending June 30, 1960, it will be appreciated if you will bill the Board for the cost of the increased benefits for the qualifying annuitants and survivors of annuitants on the rolls as of August 1, 1958. We understand that the cost of providing these benefits will approximate 419,591. It will be noted in the attached letter of this date to the Federal Reserve Bank of Richmond that the Board has authorized the Bank to pay to the Retirement System the sum of $230 for the purpose of providing an additional annuity of $120 per annum for Mrs. Maurice P. Flagg. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. Attachment. 1958 BOARD OF GOVERNORS OF THE 0400pio, .?,c1, 4141 Q,') 0 Item No. FEDERAL RESERVE SYSTEM OI* WZ. 5 7/7/58 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE HOARD July 3, 1958 Mr. R. F. Wiltse, Vice President, Federal Reserve Pank of New York, New York 45, New York. Dear Mr. lqiltse: In accordance with the request contained in your letter of June 26, 1958, the Board appro,Yes the appointment of the following individuals as assistant examiners for the Federal Reserve Bank of New York: John T. Arnold Peter P. Case Constantinos I. Costalas Alan I. Goldman John L. Lafebregue Robert C. Relyea Frank G. Straub Roger F. Titus, Jr. Please ivise as to the dates upon which the appointments are made efrectiv. It is noted that Ni'. Straub is indeted to First Bank g: Trust Company of Utica, Utica, New York, a State meml:er lank, in the amount of $360 but that this loan will be eliminated prior to his employment. It is also noted that Xr. Lafebregue owns 23 shares of common stock of The Fulton County National Bank and Trust Company of Gloversville, Gloversville, New York, and has an unsecured loan with that bank of .V00. It is understood that Mr. Lafebregue will sell the stock and pay off the loan prior to his employment. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. BOARD OF GOVERNORS 44 OF THE 90 ' CP COI/4 q1,4 Item No. FEDERAL RESERVE SYSTEM 0(.4 :R WASHINGTON 25, D. C. 4. 4% 6 7/7/58 ADDRESS OFFICIAL CoRRESPONDIENCE TO THE BOARD wctst 'A04444.* July 3, 1958 Mr. R. H. Morrill, Vice President, Federal Reserve Bank of San Francisco, San Francisco 20, California. Dear Mr. Morrill: In accordance with the request contained in your letter of June 27, 1958, the Board approves the designation of the following employees as special assistant examiners for the Federal Reserve Bank of San Francisco for the purpose of participating in examinations of State member banks only: F. S. R. M. W. K. Coburn J. Hartmann Lane D. Lawrance G. Meyer F. J. R. R. V. W. E. R. W. 0. Yontenegro Ross Russell Muir Waddle Inasmuch as the indebtedness of A. Pascual to the Company, San Francisco has been liquidated, the Trust American Board approves his designation as a special assistant examiner for the Federal Reserve Rank of San Francisco on an unrestricted basis. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 7 7/7/58 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD tttso July 7, 1958 Mr. W. R. Diercks, Vice President, Federal Reserve Pank of Chicago, Chicago 90, Illinois. Dear Mr. Diercks: In accordance with the request contained in your letters of June 26, 1958, the Board approves the appointments of N. Edwin Demoney, Jr. and Franklin D. Dreyer as assistant examiners for the Federal Reserve Bank of Chicago. Please advise as to the dates upon which the appointments are made effective. It is noted that Mr. Dreyer is indebted to The New American Bank of Oshkosh, Oshkosh, Wisconsin, a nonmember bank, in the amount of $273. Accordingly, the Board's approval is given with the understanding that Ir. Dreyer will not participate in any examinations of that hank until his indebtedness has been liquidated. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. 1_96`: BOARD OF GOVERNORS OF THE Item No. FEDERAL RESERVE SYSTEM 8 7/7/58 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD July 7, 3.958 CONFIDENTIAL (FR) Mr. W. R. Diercks, Vice President, Federal Reserve Bank of Chicago, Chicago 90, Illinois. Dear Mr. Diercks: In accordance with the request contained in your letter of June 26, 1958, the Board approves the appointment of M. Welby Taylor as an assistant examiner for the Federal Reserve Bank of Chicago. Please advise as to the date upon which the appointment is made effective. It is noted that the proposed appointee is the son of Merrill W. Taylor, Chairman of the Board of Directors of The First National Pank and Trust Company of Kalamazoo, Kalamazoo, Michigan, and that a trust established for his benefit, but over which he has no control until he reaches 25 years of age, includes 60 shares of stock of The First National Bank and Trust Company of Kalamazoo and 220 shares of stock of First City National Bank, Houston, Texas. Accordingly, the Board's approval of the appointment of Mr. Taylor is given with the understanding that he will not participate in the examinations of any bank in which he owns stock directly or indirectly and that as long as his father is an officer of The First National Bank and Trust Company of Kalamazoo, Kalamazoo, Michigan, he will not participate in any examination of that institution. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary.
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