Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, June 10, 1964, Volume 51, Part 6

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9

Minutes for

To:

Members of the Board

From:

Office of the Secretary

June 10, 1964

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. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
Gov. Mitchell
Gov. Daane

lef

-to

Minutes of the Board of Governors of the Federal Reserve
System on Wednesday, June 10, 1964.

The Board met in the Board Room

at 10:00 a.m.
PRESENT:

Mr.
Mr.
Mr.
Mr.
Mr.

Mills, Acting Chairman
Robertson
Shepardson
Mitchell
Daane
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.

Sherman, Secretary
Bakke, Assistant Secretary
Noyes, Adviser to the Board
Hackley, General Counsel
Brill, Director, Division of
Research and Statistics
Farrell, Director, Division of
Bank Operations
Solomon, Director, Division of
Examinations
Connell, Controller
Schwartz, Director, Division of
Data Processing
Shay, Assistant General Counsel
Dembitz, Associate Adviser, Division
of Research and Statistics
Sammons, Adviser, Division of International
Finance
Daniels, Assistant Director, Division
of Bank Operations
Kiley, Assistant Director, Division of
Bank Operations
Leavitt, Assistant Director, Division
of Examinations
Sprecher, Assistant Director, Division
of Personnel Administration
Langham, Assistant Director, Division
of Data Processing
Spencer, General Assistant, Office of
the Secretary
McClintock, Supervisory Review Examiner,
Division of Examinations
Sundberg, Review Examiner, Division of
Examinations
Steinberg, Economist, Division of Data
Processing

4

6/1o/64

-2Circulated or distributed items.

The following items, copies

Of which are attached to these minutes under the respective item numbers
indicated, were approved unanimously:
Item No.
Letter to Marine Midland Trust Company of Southern
New York, Elmira, New York, approving the establishment of a branch at 1320 Front Street, Town of
Chenango, branch operations conducted at 1137 Front
Street to be discontinued simultaneously with the
establishment of the new branch.

1

Letter to the Federal Deposit Insurance Corporation
regarding the application of Farmers' State Bank of
Chadwick, Chadwick, Illinois, for continuation of
deposit insurance after withdrawal from membership
In the Federal Reserve System.

2

Letter to Commonwealth National Bank of San Francisco,
San Francisco, California, granting its request for
Permission to maintain reduced reserves.

3

Letter to the Federal Reserve Bank of New York interP°Bing no objection to a leave of absence without pay
granted to Everett B. Post, Manager, Planning DepartMent, to permit him to undertake an assignment with
the Central Bank of the Philippines.

4

Letter to the Federal Reserve Bank of New York regarding
Ilse of high-speed currency counting machines to verify
'
LePosits of $1 and $5 bills. (With copies to the
Presidents of all Federal Reserve Banks.)

5

tter to International Business Machines Corporation,
rshington, D. C., confirming a verbal agreement of
7,1)111 7, 1964, by which the Board was placed in line
'Al the production schedule for an IBM 360 Model 50
electronic computer.

6

With respect to Item No.

6,

Mr. Schwartz noted that the letter

/k/Illd not commit the Board to purchase the computer if more advantageous
t
e uis were to be offered by another manufacturer of comparable equipment

6/1o/64

-3-

prior to the indicated delivery date.

Rather, the letter of intent

would merely serve to keep the Board in its favorable position on the
delivery list.
Messrs. Schwartz, Sprecher, Langham, Sundberg, and Steinberg
then withdrew from the meeting.
Application of Camden Trust Company.

There had been distributed

a memorandum from the Division of Examinations dated June

4, 1964, and

Supporting documents concerning the application of Camden Trust Company,
Camden, New Jersey, for permission to merge with Merchantville National
sank and Trust Company, Merchantville, New Jersey.

The Division recom-

mended denial of the application.
The memorandum noted that officers of the Federal Reserve Bank
Of Philadelphia had rendered diverse opinions; the examining officer who
conducted the field investigation recommended that the application be
approved, while two other officers of the Bank recommended denial.

The

Memorandum went on to state that in recommending denial, the Division of
4aminations believed the slight benefits of broader banking services

that might accrue to the present customers of Merchantville National
.sere more than offset by the unfavorable competitive implications of
eliMinating existing competition between the two banks and increasing

the size of Camden Trust Company, the largest bank in Camden County.
At the Board's request, Mr. McClintock reviewed the facts of
the case and the reasons underlying the recommendation of the Division
or Examinations, his comments being based substantially on the information
Presented in the June 1 memorandum.

6/1c1/64

-4Mr. McClintock also noted that representatives of the Legal

and Examinations Divisions had met with staff personnel of the Department of Justice, at the latter's request, to discuss the case.

The

Department wished to determine whether there existed any significant
factors favoring the proposed merger that were not apparent in the
application, and the impression had been conveyed by its representatives
that the creation of or increase in a high degree of concentration would
he considered by that Department to outweigh other factors, no matter
how favorable, in any merger case.

In this particular instance) Mr.

McClintock indicated that the Department of Justice personnel had
iatimated suit might be brought to block the merger if the Board should
approve the application.

Certain Board members expressed concern about

the Propriety of the Department making such representations while the
ease was pending before the Board.

However, Mr. Shay commented that

he believed the advice had been given merely by way of acquainting
the Board staff with the philosophy of the Department in merger matters)
and not for the purpose of attempting to influence the Board's judgment
In this specific case.
Mr. McClintock went on to suggest that since the case was a
clIfficult one, and particularly in view of the interest expressed by
the Justice Department, the Board might wish to order an oral presentation.
Following a discussion in which members of the staff responded
to

questions posed by Board members concerning certain factual aspects

-5-

6/1o/64

of the application, it was the consensus that information already in
the Board's possession was adequate and that no useful purpose would be
served by an oral presentation.
In further discussion, the nature of the geographical area
served by Merchantville National was explored and the accessibility of
banking services in the surrounding area, including Philadelphia) was
developed.

The existing concentration of banking resources held by

Camden Trust Company and the relative merits of maintaining Merchantville National as an independent institution were also touched upon.
Governor Shepardson observed that the restrictive State law
l

arding branch banking made merger the only feasible solution for

banks in New Jersey desirous of expanding their geographical area of
Operation beyond their home counties or into municipalities where there
'
8 located

an office of another bank.

In his view, however, this

consideration was subsidiary to the adverse competitive effects that
l'ould result from consummation of the proposed transaction.
Other members of the Board having expressed similar views, the
atTlication of Camden Trust Company for permission to merge with Mercbantville National Bank and Trust Company was then denied unanimously.
It 14as understood that the Legal Division would draft an order and
sUPPorting statement for the Board's consideration.
Messrs. Noyes, Shay, Leavitt, and McClintock then withdrew
rrom the meeting.

6/1064

-6Reserve Bank budgets (Items 7,

8, and 9). There had been dis-

tributed a memorandum from the Division of Bank Operations dated June

5,

1964, summarizing the proposed budgets of the Federal Reserve Banks for
the period July 1 - December 310 1964, accompanied by detailed memoranda
analyzing each budget.
The summary memorandum noted that with the exception of the
Dallas Reserve Bank, all Banks had submitted their proposed budgets on
the new reporting form provided for in the Board's letter of March

31,

1964 (s-19o8). This letter had stated that while use of the new form
would not be required until proposed budgets for the first half of 1965
/lere submitted, it was hoped that the Banks would initiate use of the
form in connection with their budgets for the last half of 1964.

Failure

of the Dallas Reserve Bank to do so was explained by the fact that when
the Board's letter of March 31 had been received, the budget for the
last half of 1964 was already in process of preparation and the Bank
had felt a change of procedure at that time would be inadvisable.
At the request of the Board, Mr. Kiley summarized the salient
features of the proposed budgets, following which Mr. Farrell made
ertain supplementary comments.
Governor Mitchell remarked that he thought the budgets as
111DMitted represented what had been in mind at the time the budget
1/110cedure was modified.

Not only did the estimates avoid too much long-

projection, but the budget documents also highlighted significant

6/1o/64
Changes in operations that were taking place at the Reserve Banks.

He

then asked about the current coin shortage and its budgetary impact,
specifically with relation to the turnover of personnel involved in coin
handling.

Mr. Kiley replied that there had been no significant incidence

Of layoff due to the coin shortage, because as personnel needs in the
coin departments had decreased the Banks generally had been assigning
superfluous employees to other departments.

Accordingly, the budgetary

effect of the coin shortage was not appreciable.
During further discussion, agreement was expressed with a
8uggestion that in the letter accepting the San Francisco Reserve Bank's
budget, the Board call attention to the recurring provision for additional
employees in the bank examination function, despite the apparent difficulty

in obtaining such personnel, and urge the Bank to make every reasonable
effort to fill the budgeted positions during the remainder of the year.
The budgets of the respective Federal Reserve Banks for the
second half of 1964 were then accepted as submitted.

A copy of the

letter sent to the Federal Reserve Bank of Boston pursuant to this action
Is attached as Item No.

7.

The letters sent to the other Federal Reserve

4nks, except Dallas and San Francisco, were similar in form.

Copies of

the letters sent to the Dallas and San Francisco Banks are attached as
respectively.
Messrs. Brill, Connell, and Dembitz then withdrew from the

'fleeting.

6/1o/64
Proposed New Orleans real estate purchase.

There had been

circulated to the members of the Board a memorandum dated June 5, 1964,
from the Division of Bank Operations concerning a letter of May 19,

1964, from the Federal Reserve Bank of Atlanta requesting authority to
Purchase property at the corner of St. Charles Avenue and Poydras Street
adjoining the New Orleans Branch building site at a price not in excess
of $425,000.
The Bank's letter stated that the proposed acquisition would
insure sufficient room for any future needs of the Branch, remove adjoining unattractive, poorly maintained buildings that were out of
harmony architecturally with the Branch property, and remove the undesirable tenants of these buildings from the neighborhood.

In

ex-

Plaining why purchase of the property was not considered at the time
the present building site was acquired in 1958, the Bank observed that
the present property contained sufficient space for growth for many
Years,

However, any expansion of the building now under construction

l'/ould have to be on the land set aside for the employees' parking lot,
44d acquisition of the additional property would insure sufficient
1"°0111 for future expansion without reducing the parking area.

As an

alternative, the Bank suggested that the property could be resold under
e°nditions that would permit reconstruction and occupancy to be controlled
to the satisfaction of the Branch.

6/10 64

_9The memorandum gave additional background information concerning

the property in question, including reference to certain conclusions in
an appraiser's report that had been secured by the Branch. The memorandum concluded by requesting the guidance of the Board on this matter
before drafting a reply to the Reserve Bank's letter.
Governor Mitchell expressed the opinion that the New Orleans
Branch had made a mistake in not purchasing the property in question
when the present building site was acquired.
In the discussion that followed, Mr. Farrell described certain
Physical features of the property.

He pointed out that the main objec-

tive of the directors seemed to be to enable the Branch to eliminate the
adjacent undesirable establishments, and to improve the safety of the
area for women employees.

The additional space would, however, help

solve parking problems and would provide for later expansion, but the
Atlanta Bank had not based its request to any material degree on proaPective need for the space.

Mr. Farrell noted that if the additional

Pr(Verty were acquired, New Orleans would have one of the largest areas
°I' land held for any Federal Reserve Bank or branch.

Mr. Farrell went

°4 to comment that if the property were acquired, presumably it could
later be sold at a price that would cover the cost of purchase.
Discussion then turned to a question concerning the appraised
e of the property, during which it was noted that the New Orleans
alleh had paid $11.49 a square foot for its present building site.

6/10/64

-10-

Subsequent sales of property in the vicinity noted in the appraisal
report had been at prices ranging from

$6,86 to

$14.49 a square foot.

Nevertheless, the appraiser had expressed the opinion that the appraised
value of $329,000 for the property sought to be acquired, or $20 a square
foot, was conservative.

In this connection, Mr. Daniels commented that

the appraiser had been of the opinion that improvements contemplated for
the area, including development of new port facilities, new buildings,
and the widening of Poydras Street, would considerably enhance property
values.

He also noted that while the Branch location was now on the

Periphery of the business district, the trend of expansion was in the
direction of the area surrounding the Branch.
Governor Mills commented that he would like further substantiation of the reasonableness of the $425,000 maximum purchase price for
which the Bank was requesting authorization, and Governors Mitchell and
Daane suggested that perhaps the appraised value of $329,000 should be
the ceiling figure, if the purchase plans were authorized.

Governor

Robertson expressed strong doubts that the Board should authorize
Illtrehase of the property at all on the basis of the information that
had been presented.
A suggestion was then made that the matter be discussed with
President Bryan of the Federal Reserve Bank of Atlanta when he was in
Washington next week, particularly to find out whether the directors
or officers had additional strong reasons for proposing the purchase,

6/1o/64

-11-

after which the subject could be considered further.

There was general

agreement with this suggestion, and it was understood that Governor
Mitchell would discuss the proposed real estate purchase with President
BrYan.
The meeting then adjourned.
Secretary's Note: Governor Shepardson
today approved on behalf of the Board
the following items:
Letter to the Federal Reserve Bank of New York (attached Item No. 10)
approving the appointment of Peter A. Zakriski as assistant examiner.
Telegram to the Federal Reserve Bank of Minneapolis (attached Item
-2.7_11) approving the appointment of John August Schrank as assistant
examiner.
Memoranda recommending the following actions relating to the Board's
staff:
%ointment
.
George Viksnins as Economist, Division of Research and Statistics,
Illth basic annual salary at the rate of $8,410, effective the date of
entrance upon duty.
Additional budget position
,
Position of General Assistant in the Administration and Minutes
Qection of the Office of the Secretary.
Lizas.1212,2:
22_2Lresignations
e, M. Carla Schiller, Draftsman (Trainee), Division of Data Processing,
.Ifective at the close of business June 9, 1964.
4.

$.111-

Dora Albers, Charwoman, Division of Administrative Services, effecat the close of business June 3, 1964.

Item No. 1
6/10/611.

BOARD OF GOVERNORS
OF THE

......
• ,00? Got',•.
••

FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 2055I

2*
w*

'frrirrl

ADDRESS OFFICIAL CORRESPONDENCE
CS

TO THE BOARD

,44'•
a RES,`-•
•tti
-•.••••

June 10, 1964.

Board of Directors,
Marine Midland Trust Company
of Southern New York,
Elmira, New York.
Gentlemen:
The Board of Governors of the Federal
Reserve System approves the establishment of a
branch at 1320 Front Street, unincorporated
Village of Nimmonsburg, Town of Chenango, Broome
County, New York, by the Marine Midland Trust
Company of Southern New York, provided the
branch is established within one year from the.
date of this letter, and provided further, that
branch operations conducted at 1137 Front Street
are discontinued simultaneously with the establishment of the above branch.
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.)

2013
BOARD OF GOVERNORS

Item No. 2

6/1064

OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

June 10, 1964.

The Honorable Joseph W. Barr, Chairman,
Federal Deposit Insurance Corporation,
Washington, D. C. 20429
Dear Mr. Barr:
Reference is made to your letter of May 28, l964,
concerning the application of Farmers' State Bank of
Chadwick, Chadwick, Illinois, for continuance of deposit
insurance after withdrawal from membership in the Federal
Reserve System.
There have been no corrective programs urged
or agreed to by it, which have not been
bank,
Upon the
and in the Board's opinion, there are
ated,
consumm
fully
no such programs that it would be advisable to incorporate
as conditions of admitting the bank to membership in the
Corporation as a nonmember of the Federal Reserve System.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.

20_14

BOARD OF GOVERNORS
OF THE

Item No.

FEDERAL RESERVE SYSTEM

3

6/1064

WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

June 10, 1964.

Board of Directors,
Commonwealth National Bank of
San Francisco,
400 Montgomery Street,
San Francisco, California. 94104
Gentlemen:
With reference to your request submitted through
the Federal Reserve Bank of San Francisco, the Board of
Governors,acting under the provisions of Section 19 of the
Federal Reserve Act, grants permission to the Commonwealth
National Bank of San Francisco to maintain the same reserves
against deposits as are required to be maintained by nonreserve city banks, effective as of the date it opens for
business.
Your attention is cellPd to the fact that such
permission is subject to revocation by the Board of Governors.
Very truly yours,

(Signed) Merritt Sherman
Merritt Sherman,
Secretary.

20i5

BOARD OF GOVERNORS
OF THE

Item No.

4

6/1064

FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551

ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

June 10, 1964.

Mr. Thomas M. Timlen, Jr.,
Secretary,
Federal Reserve Bank of New York,
New York, New York. 10045,
Dear Mr. Timlen:
Your letter of May 21, with enclosure, regarding
a leave of absence granted to Mr. Everett B. Post, Manager,
Planning Department, to permit him to undertake an assignment with the Central Bank of the Philippines has been
brought to the attention of the Board of Governors.
The Board interposes no objection to the arrangements
indicated.
Very truly yours,
(Signed) Merritt Sherman

Merritt Sherman,
Secretary.

Ki9U_A-0

BOARD OF GOVERNORS

Item No.

5

6/1o/64

OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

June 11, 1964.

11!. William F. Treiber,
Pirst Vice President,
Federal Reserve Bank of New York,
New York, New York. 10045
Dear Mr. Treiber:
In your letter of May 22, 1964, you referred to the Board's
letters
of May 1 and April 23, 1964, suggesting that the use of highPeed currency counting machines be limited to $1 bills in the proof of
1 °rning deposits of currency. You asked whether this restriction was
a;;Lended to apply to tickometers as well as to the De La Rue machines;
dud s if so, whether an exception could be made to permit your Bank,
4Jing the two years that the New York World's Fair will be open, to
the tickometers to process annually approximately 20 million bills of
e $S denomination.
Since the restriction you referred to was intended to apply
Y high-speed machines, similar to the De La Rue equipment or
°meters, your proposal to use tickometers on $5 bills was referred
to the Secret Service for comment. After a review of the
ler, the Secret Service has advised that at the present time counter!
fe
aclts in the $1 and $5 denominations are not a problem, and that,
Bacc3rd1ngly, it would have no objection to use by a Federal Reserve
; of high-speed equipment to verify deposits in these denominations
asnl
t°ng as there was an understanding that-to

ticr

1. The use of the high-speed equipment would be discontinued whenever and wherever a counterfeit problem
might develop in either the $1 or $5 denominations.
2. The Secret Service will undertake to advise the
Board and the Reserve Bank concerned of any such
developments.

Mr. Treiber

-2-

Under these circumstances, the Board sees no reason why your
Bank
or any other Reserve Bank, should not use high-speed equipment,
lt so desires, in proving deposits of $1 and $5
bills unless requested
ut to do so by the Secret
Service.
A copy of this letter is being sent to the President of each
%deral Reserve Bank to serve as a modification of the Board's letter
(
;f the Chairman of the Conference of Presidents on April 23, 1964, copies
Which were transmitted to all Reserve Banks on May 1.

Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.

201(j
Item No. 6

BOARD OF GOVERNORS
OF THE

6/i.o./64

FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551

ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

June 10, 1964.
International Business Machines Corporation,
1111 Connecticut Avenue, N. W.,
Washington, D. C. 20036
Attention Mr. C. W. Gooch, III
Subject:

Letter of intent on the IBM 360

Gentlemen:

The purpose of this letter is to confirm the verbal agreement
April 7, 1964, by which the Board was placed in line on your produca
tion schedule for an IBM 360 model 50 computer. We understand that
elivery of the computer is scheduled on your books for October, 1965.
A continuing study is being made of computer equipment suitable
to the Board's needs. At the present time the Board plans to acquire the
ril°del 360 equipment listed below.
Name

allaaLay.

Number

Monthly
Rental

2050-F50

$ 8,350

1

C.P.U.

1

Selector channel

-6980

700

1

Console adapter

-7920

225

1

Printer keyboard

1052-001

65

1

Disk drive

2311-001

575

1

Storage control

2841-001

525

2

Dual tape drives

2402-002

1,840

1

Tape control unit

2803-001

650

1

Control unit

2821-001

970

1

Printer adapter

1

Printer

1403-003

900

1

Card read punch

1402-N01

660

1

Interchangeable Cartridge

1416-001

100

-3615

75

$15,635

International Business Machines
Corporation

It is understood that no obligation will be incurred by the
ard as a result of this letter of intent.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.

BOARD OF GOVERNORS

.4 Jic.aJ

OF THE

FEDERAL RESERVE SYSTEM

Item No.

7

6/1o/64

WASHINGTON, D. C. 20551

ADDRESS OFFICIAL CORRESPONDENCE
TO THE 00ARD

June 12, 1964.

Mr. George H. Ellis, President,
Federal Reserve Bank of Boston,
Boston, Massachusetts. 02106.
Dear Mr. Ellis:
The
the budget of
Period July 1
letter of May

Board of Governors has reviewed and accepts
the Federal Reserve Bank of Boston for the
- December 31, 1964, as submitted with your
14, 1964.

The Board wishes to express its appreciation for
Your Bank's cooperation in the use of the new budget report
form, which has aided significantly in its consideration of
the budget proposals.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.

BOARD OF GOVERNORS
OF THE

Item No.

FEDERAL RESERVE SYSTEM

8

6/1o/64

WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
•

June 12, 1964.

Mr. Watrous H. Irons, President,
Federal Reserve Bank of Dallas,
Station K,
Dallas, Texas. 75222.
Dear Mr. Irons:
The Board of Governors has reviewed and accepts
the budget of the Federal Reserve Bank of Dallas for the
period July 1 - December 31, 1964, as submitted with
Mr. Murff's letter of May 14, 1964.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.

BOARD OF GOVERNORS

Item No.

OF THE

9

6/1064

FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

June 12, 1964.

Mr. Eliot J. Swan, President,
Federal Reserve Bank of San Francisco,
San Francisco, California. 94120.
Dear Mr. Swan:
The Board of Governors has reviewed and accepts the
budget of the Federal Reserve Bank of San Francisco for the
period July 1 - December 31, 1964, which was submitted with
Your letter of May 12, 1964.
As you are aware, the Board looks upon the budget
of each Reserve Bank as being, in a sense, a target for the
forthcoming period. In this connection, it was noted that
Provision has again been made for additional employees in the
Bank Examination Function during the last half of 1964, despite
the inability of your Bank to obtain such personnel provided
for in budgets for both the current and previous periods. It
Would seem highly desirable to acquire the needed additions
to the staff of the bank examination function, and it is hoped
therefore that increased efforts at recruitment can result in
the filling of the budgeted positions during the remainder of
this year.
The Board wishes to express its appreciation for
Your Bank's cooperation in the use of the new budget report
f°rm, which has aided significantly in its consideration of
the budget proposals.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.

BOARD OF GOVERNORS
Item No. 10

OF THE

FEDERAL RESERVE SYSTEM

6/1064

WASHINGTON 25, D. C.
ADDRESS OrricIAL CORRESPONDENCE
TO THE BOARD

June 10, 1964.

Mr. Howard D. Crosse, Vice President,
Federal Reserve Bank of New York,
New York, New York 10045.
Dear Mr. Crosse:
In accordance with the request contained in your letter
of June 4, 1964, the Board approves the appointment of Peter A.
Zakriski as an assistant examiner for the Federal Reserve Bank of
New York. Please advise the effective date of the appointment.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.

TELEGRAM

Item No. 11

LEASED WIRE SERVICE

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON

June 11

6/1o/64-

1964

DEMING - MINNEAPOLIS

Reurlet June 8, 1964, Board approves appointment of John August Schrank
aS

assistant examiner for Federal Reserve Bank of Minneapolis, effective

June 16, 1964.

(Signed) Karl E. Bakke
BAKKE