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609 Minutes for To: Members of the Board From: Office of the Secretary July 7, 1966 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, please initial below. If you were present at the meeting, your initials will indicate approval of the minutes. If you were not present, your initials will indicate only that you have seen the minutes. Chm. Martin Gov. Robertson Gov. Shepardson Gov. Mitchell Gov. Daane Gov. Maisel Gov. Brimmer '11 Minutes of a meeting of the available members of the Board of Governors of the Federal Reserve System on Thursday, July 7, 1966. The meeting was held in the Board Room at 10:00 a.m. PRESENT: Mr. Robertson, Vice Chairman Mr. Shepardson Mr. Maisel Mr. Mr. Mr. Mr. Mr. Sherman, Secretary Bakke, Assistant Secretary Fauver, Assistant to the Board Hackley, General Counsel Farrell, Director, Division of Bank Operations Mr. Kakalec, Controller Mr. Forrestal, Senior Attorney, Legal Division Mr. Waller, Supervisory Accountant, Office of the Controller The following actions were taken, subject to ratification at the next meeting of the Board at which a quorum was present: Discount rates. The establishment without change by the Federal Reserve Bank of Boston on July 5, 1966, and by the Federal Reserve Banks of Cleveland, Richmond, St. Louis, Kansas City, Dallas, and San Francisco on July 7, 1966, of the rates on discounts and advances in their existing schedules was approved unanimously, with the understanding that appropriate advice would be sent to those Banks. Approved items. The following items, copies of which are attached under the respective numbers indicated, were approved unanimously after consideration of background information that had been made available to the members of the Board: 7/7/66 -2Item No. Letter to The Commercial and Savings Bank, Millersburg, Ohio, approving the establishment of a branch in Walnut Creek, Holmes County, Ohio. 1 Letter to The Colorado Bank and Trust Company of La Junta, La Junta, Colorado, approving the establishment of an in-town branch at the corner of Third Street and Raton Avenue. 2 Letter to the Federal Reserve Bank of New York granting approval to act as fiscal agent for a proposed issue by the International Bank for Reconstruction and Development of Twenty-Five Year Bonds of 1966, due July 1, 1991. 3 Assessment for Board expenses. There had been distributed a memorandum from the Office of the Controller dated July 6, 1966, recommending that an assessment of .00370 per cent of the total paidin capital and surplus of the Federal Reserve Banks as of June 30, 1966, be levied upon the Banks to meet the estimated expenses of the Board for the second half of 1966. Such an assessment would produce $4,118,200. Governor Maisel inquired about reference in the memorandum to an anticipated overexpenditure of $260,000 in the 1966 budget estimate, incident to a proposed reorganization of the Division of Data Processing. Governor Shepardson commented that the reorganization and expense in question were related to installation of the new IBM 360 computer system and the possibility the Division would move from the Board building to rental space at an outside location. He added that Mr. Byrne, 7/7/66 -3- Director of the Division of Data Processing, was preparing a memorandum on this subject that would be distributed to the Board in the near future. The recommended assessment was approved unanimously. All members of the staff except Mr. Sherman then withdrew and the Board went into executive session. Secretary's Note: Governor Shepardson today approved on behalf of the Board the following items: Memoranda from the Director of the Division of Administrative Services dated July 5, 1966, and from the Controller dated July 6, 1966, recommending, respectively, that an additional experienced operating engineer be provided, on either a contractual or regular basis, to permit operation of the air conditioning system in the Board building after regular working hours during the summer months, and that a new position be authorized in that Division if such person is hired as a regular employee. Letter to the Federal Reserve Bank of New York (attached Item No. 4) approving the appointment of Woodrow W. Campbell, John M. Eighmy, Emory B. Freeman, Robert J. Mischler, David B. Rodgers, and Marshall W. Snow as assistant examiners. Letter to the Federal Reserve Bank of Richmond (attached Item No. 5) approving the appointment to Donald M. Pattillo as assistant examiner. Memorandum recommending the transfer of Dorothy M. Vereb from the position of Statistical Clerk, Division of Bank Operations, to the position of Statistical Assistant, Division of Research and Statistics, with an increase in basic annual salary from 0,109 to 0,523, effective upon assuming her new duties. Item No. 1 7/7/66 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, 0. C. 20351 ADDRESS orriciAL CORRESPONDENCE TO THE BOARD July 7, 1966. Board of Directors, The Commercial and Savings Bank of Millersburg Ohio, Millersburg, Ohio. Gentlemen: The Board of Governors of the Federal Reserve System approves the establishment by The Commercial and Savings Bank of Millersburg Ohio, Millersburg, Ohio, of a branch in Walnut Creek, Holmes County, Ohio, provided the branch is established within six months from the date of this letter. Very truly yours, (Signed) Karl E. Bakke Karl E. Bakke, Assistant Secretary. (The letter to the Reserve Bank stated that the Board also had approved a six-month extension of the period allowed to establish the branch, and that if an extension should be requested, the procedure prescribed in the Board's letter of November 9, 1962 (S-1846), should be followed.) 241:4 BOARD OF GOVERNORS Item No. 2 7/7/66 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, O. C. 20551 ADDRESS orrunAL CORRESPONDENCE TO THE MORRO July 7, 1966. Board of Directors, The Colorado Bank and Trust Company of La Junta, La Junta, Colorado. Gentlemen: .The Board of Governors of the Federal Reserve System approves the establishment by The Colorado Bank and Trust Company of La Junta, La Junta, Colorado, of a branch at the corner of Third Street and Raton Avenue, La Junta, Colorado, provided the branch is established within six months from the date of this letter. Very truly yours, (Signed) Karl E. Bakke Karl E. Bakke, Assistant Secretary. (The letter to the Reserve Bank stated that the Board also had approved a six-month extension of the period allowed to establish the branch; and that if an extension should be requested, the procedure prescribed in the Board's letter of November 9, 1962 (S-1846), should be followed.) BOARD OF GOVERNORS Item No. 3 7/7/66 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD July 7, 1966. Mr. H. A. Bilby, Vice President, Federal Reserve Bank of New York, New York, New York. 10045 Dear Mr. Bilby: This refers to your letter of June 29, 1966, and enclosures, concerning the proposed issue by the International Bank for Reconstruction and Development of its Twenty-Five Year Bonds of 1966, due July 1, 1991, in an aggregate principal amount of $175 million. In this regard, you state that it is proposed to amend Schedule A of the Fiscal Agency Agreement, dated as of February 6, 1950, between the International Bank and your Bank to include the bonds in question. The Board of Governors approves of your Bank acting as fiscal agent with respect to the proposed bond issue, and approves the execution and delivery by your Bank of an agreement with the International Bank substantially in the form of the draft of Supplement No. 28 to the Fiscal Agency Agreement enclosed with your letter. Very truly yours, Merritt Sharma Secretary. BOARD OF GOVERNORS Item No. 4 7/7/66 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD July 7, 1966 Mr. Fred W. Piderit, Jr., Vice President, Federal Reserve Bank of New York, New York, New York. 10045 Dear Mr. Piderit: In accordance with the request contained in your letter of June 30, 1966, the Board approves the appointments of Woodrow W. Campbell, John M. Eighmy, Emory B. Freeman, Robert J. Mischler, David B. Rodgers, and Marshall W. Snow as assistant examiners for the Federal Reserve Bank of New York. Please advise the effective dates of the appointments. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. ' BOARD OF GOVERNORS Item No. 5 7/7/66 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 AOORCEIB OFFICIAL CORRESPONOCHCC TO THC HOARD July 7, 1966 Mr. John L. Nosker, Vice President, Federal Reserve Bank of Richmond, Richmond, Virginia. 23213 Dear Mr. Nosker: In accordance with the request contained in the your letter of June 30, 1966, the Board approves ant assist an as lo appointment of Donald M. Pattil examiner for the Federal Reserve Bank of Richmond, effective today. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary.
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