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Minutes for
To:
Members of the Board
From:
Office of the Secretary
June 17, 1965.
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. Balderston
Gov. Shepardson
Gov. Mitchell
Gov. Daane
Goy. Maisel
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Federal Reserve Bank of St. Louis
Minutes of the Board of Governors of the Federal Reserve System
on Thursday, June 17, 1965.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
The Board met in the Board Room at 9:30 a.m.
Martin, Chairman
Robertson
Shepardson
Mitchell
Daane
Maisel
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Sherman, Secretary
Kenyon, Assistant Secretary
Broida, Assistant Secretary
Cardon, Legislative Counsel
Hackley, General Counsel
Solomon, Director, Division of Examinations
Solomon, Adviser, Division of Research and
Statistics
Hersey, Adviser, Division of International
Finance
Katz, Adviser, Division of International
Finance
Irvine, Associate Adviser, Division of
International Finance
Reynolds, Associate Adviser, Division of
International Finance
Wood, Associate Adviser, Division of International Finance
Spencer, General Assistant, Office of the
Secretary
Study on international liquidity.
Mr. Solomon (Research) reviewed
the contents of, and his participation in drafting, the report of the
Study Group on the Creation of Reserve Assets, a group appointed by the
e putie s of the Group of Ten to study alternative proposals for increasing
international liquidity.
It was brought out that although copies of the
ePort had been made available to certain persons within the United
States Government, the report had not yet been made public.
it 1,
-een acted upon by the Deputies of the Group of Ten.
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Federal Reserve Bank of St. Louis
Nor had
6/17/65
-2All members of the staff who had been present except Messrs.
Sherman, Kenyon, Hackley, Solomon (Examinations), and Spencer then
Withdrew from the meeting and the following entered the room:
Noyes, Adviser to the Board
Molony, Assistant to the Board
Farrell, Director, Division of Bank Operations
Shay, Assistant General Counsel
Daniels, Assistant Director, Division of Bank Operations
Leavitt, Assistant Director, Division of Examinations
Sprecher, Assistant Director, Division of Personnel
Administration
Mr. Thompson, Economist, Division of Research and Statistics
Mr. McClintock, Supervisory Review Examiner, Division of
Examinations
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Discount rates.
The establishment without change by the Federal
Reserve Bank of Kansas City on June 16, 1965, of the rates on discounts
and advances in its existing schedule was approved unanimously, with
the understanding that appropriate advice would be sent to that Bank.
Circulated 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.
12etter to Central Trust Company, Rochester, N.Y.,
1(c)chester, New York, approving the establishment
1 a branch in the Panorama Plaza Shopping Center,
(3
!
"
41 of Penfield.
Letter to the Federal Reserve Bank of San Francisco
arding the classification of member banks in the
'awelfth District for the purpose of electing Class A
nd Class B directors.
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Federal Reserve Bank of St. Louis
1
2
6/17/65
-3Item No.
Letter to the Federal Reserve Bank of Cleveland
approving the appointment of John D. Groppe as
Federal Reserve Agent's Representative at the
Cincinnati Branch.
3
Letter to the Federal Reserve Bank of Chicago
aPproving the payment of salaries to the Bank's
Plumbers and carpenters at specified rates.
4
Letter to the Federal Reserve Bank of New York approving (1) the appointment of Fred W. Piderit, Jr., as
Vice President in charge of the bank supervision and
relations function, and (2) the payment of salary to
Mr. Piderit and five other officers at the head office,
and to two officers at the Buffalo Branch, at rates
fixed by the Bank's Board of Directors.
5
Report on competitive factors (San Francisco-Long Beach,
...
"
C.:111LaEata)
There had been distributed a draft of report to the
Comptroller of the Currency on the competitive factors involved in
the
proposed merger of First National Bank of Long Beach, Long Beach,
California, into The Bank of California, National Association, San
Pr ancisco, California.
The draft report contained a conclusion
stating that consummation of the proposed merger would further the
concentration of banking resources in a few large banks in California
but would not have an adverse effect on the competitive situation
the trade area of the resulting institution.
In discussion, Governor Robertson suggested a revision of
the
conclusion somewhat along the following lines:
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Although there is little if any competition between the
two banks at the present time, consummation of the proposed
merger would eliminate a small alternative source of banking
services, constituting one more step toward concentration of
banking resources in California, and hence would have potential
adverse effects on competition.
Governor Maisel indicated that his views were similar to those
of Governor Robertson.
He went on to comment concerning the difficulty
involved in developing a suitable and consistent set of competitive
factor reports without having the benefit of broad background studies
re garding the banking situation in the particular State.
The individual
reports, he suggested, should be prepared within an agreed-upon overall
context.
For example, there was the question of what could be done by
14aY of de novo branching, which was an alternative to expansion via
the merger route.
He proposed that for certain critical States, where
the Board was continually being called upon to decide merger applicati°ns and submit competitive factor reports, it would be helpful if
he Board could have available statements of the broad picture of bankcompetition and the developing trends.
He observed, in this con-
nection, that it was hard to make decisions in the absence of agreeamong the several bank supervisory agencies on policy objectives.
Governor Mitchell noted that the issue mentioned by Governor
144isel had been the subject of numerous discussions by the Board.
But
14 this particular case there was no competition between the two
Participating banks, nor did it seem likely that there ever would be
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competition between them.
The question, therefore, came down to the
trend toward banking concentration in California, and in his view
more competition was generated through the existence of a number of
branch systems than through the existence of small scattered banking
units, which could have monopolistic characteristics within their own
areas.
The ideal, as he saw it, would be State-wide branch systems
in company with local banks.
He would like to see a couple more large
In the
branch systems in California, along with more local units.
case presently before the Board, he was not particularly worried from
the standpoint of the trend toward concentration.
Mr. Solomon commented that there should have been sent to
°17ernor Maisel a copy of the report prepared by the Division of
4sminations on the banking situation in California, which report
had been updated for the Board from time to time.
He noted, however,
that such
reports were in terms of aggregates; when a particular case
came before the Board, there was always the question whether any
Potential for competition existed between the institutions.
Chairman Martin requested that the California studies referred
to bY Mr. Solomon be sent to Governor Maisel for perusal.
that
t
O
he felt Governor Maisel had made a valid point:
He added
it was desirable
look at the overall situation in considering each individual case,
tec°gnizing that this was not the easiest thing to do.
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Federal Reserve Bank of St. Louis
6/17/65
-6After further comments by Governor Maisel on the need for
interagency coordination of policies, Governor Daane said that, like
the Chairman, he felt Governor Maisel had made a valid point.
The
Problem was a difficult one, but even so he thought it would be helpful to try to develop an overall view in some of the problem States.
In the case now before the Board, however, he did not see much evidence
Of Possible competition between the two banks involved, and he would
be
inclined to go along with the originally suggested conclusion on
e°mpetitive factors.
After Governor Robertson had restated his proposed alternative
eonclusion, Chairman Martin observed that there appeared to be a basic
difference of philosophy within the Board, which suggested that probablY the best course would be to let the report be transmitted as
wr itten,
with any dissents entered in the minutes.
Accordingly, with Governors Robertson and Maisel dissenting,
was given to the transmittal to the Comptroller of the report
a8
drafted, the conclusion reading as follows:
Consummation of the proposed merger of The Bank of California,
National Association, and First National Bank of Long Beach would
further the concentration of banking resources in a few large
banks in California, but would not have an adverse effect on the
competitive situation in the trade area of the resulting institution.
Re ort on competitive factor lSan Diego-Hawthorne, California).
Una44_
'mous auroval was given to the transmittal to the Comptroller of
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the Currency of a report on the competitive factors involved in the
Proposed merger of Pacific State Bank, Hawthorne, California, into
United States National Bank, San Diego, California.
The conclusion
read as follows:
The proposed merger of United States National Bank, San
Diego, and Pacific State Bank, Hawthorne, involves two banks
which are not presently serving the same area or competing
With each other. The overall effect of the proposed merger
on competition would not be adverse.
Application of Citizens Bank (Items 6 and 7).
Pursuant to
the decision at the meeting on June 11, 1965, there had been distributed drafts of an order and a statement reflecting the Board's
aPProval of the application of Citizens Bank, Vermillion, South
bakota, to consolidate with Security State Bank, Gayville, So. Dak.,
Ga Yville, South Dakota, Farmers State Bank, Tabor, South Dakota,
and The Security State Bank, Wakonda, South Dakota.
After discussion, the issuance of the order and statement
14as a uthorized.
Copies of the documents, as issued, are attached as
Items 6 and 7.
Messrs. Shay, Daniels, and McClintock then withdrew from the
'fleeting and Mr. Brill, Director, Division of Research and Statistics,
entered the room.
Department store reports (Item No. 8).
At its meeting yesterday
the 130ard had given initial consideration to a memorandum from Mr. Sherman
dated June 10, 1965, relating to a program for withdrawal by the Federal
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-8-
Reserve from the preparation of department store sales reports, with
the understanding that any Reserve Bank that so elected would continue
to collect and publish weekly and perhaps monthly sales data for local
areas in its district.
Such a program, which had been approved by a
majority of the Presidents at the meeting of the Conference of Presidents on March 1, 1965, contemplated:
1.
System withdrawal from the department store
program after January 1966, with an early
announcement to respondents and the public.
2.
Agreement by the System with the Census
Bureau to underwrite the cost of preparing
monthly department store sales figures for
about 200 cities and local areas now shown
in the reports of the Reserve Banks but not
included in regular Census reports prepared
with appropriated funds. (The Presidents
felt that the System should underwrite the
cost of having Census prepare these figures
during the period February 1966 through
June 1967, and Census estimated the cost
at $30,000 per year.)
.
Mr,
Announcement of plans by those Reserve Banks
that would continue to publish weekly or
monthly reports of department store sales
by cities or areas, such announcement to be
made at the same time that the other Reserve
Banks announced their plans to discontinue
the department store reports.
Sherman's memorandum recommended that the Board concur in the
&eller
al program approved by the Reserve Bank Presidents, and with the
TileT11°randum there was submitted a draft of letter to the Reserve Banks
s
etti g out the terms of the Board's approval.
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Federal Reserve Bank of St. Louis
4
6/17/65
-9At the Chairman's request, Mr. Sherman reviewed the material
he had covered in his statement at yesterday's meeting presenting the
key points involved in the program.
In his comments today Mr. Sherman brought out that approval of
the program would mean a withdrawal by the System from an area of
statistical reporting in which it had engaged since 1919.
The System
would remain in the field only to the extent that individual Reserve
Banks decided to continue to collect and publish weekly and perhaps
monthly department store sales data for cities and areas in their
re spective districts.
At present only three Banks (Boston, Cleveland,
and Dallas) planned to continue their weekly series, although one or
two more might yet elect to do so.
The withdrawal by the Federal
Reserve from the remainder of the department store program would mean
a 1°ss of certain available information.
However, the monthly depart-
Store sales report by local areas would be replaced by the Census
Bureau's building up and publishing similar data as an extension of
its monthly reports of total retail sales.
The Census program contemplated
hat retail sales data for the 60 largest standard metropolitan statistical
areas would be prepared with appropriated funds in perhaps a couple of
Years.
In the meantime, Census was willing to compile data for these
alld additional local areas now covered by the Federal Reserve Bank reports,
if the incremental costs (estimated at $30,000 a year) were financed by
theFederal Reserve or some other source, and if retailers were willing
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to furnish data that would make the reports for any given city or area
statistically meaningful.
It was hoped that Census would be in posi-
tion to carry this program forward as the Federal Reserve discontinued
its reporting next year, in order that there would be some significant
local data on retail sales continuously available.
The Reserve Bank
Presidents had recommended that the Federal Reserve pay the incremental
costs of having the monthly figures for the approximately 200 cities
and areas now shown in the Federal Reserve reports continued until
However,the memorandum (Mr. Sherman's memorandum) left
this date open, with the thought that the question of carrying forward
the local
comparisons might be reviewed in the spring of 1967 in the
light of the situation at that time.
While no one could be certain at this stage of the repercussions,
Mr. Sherman said he did not anticipate a great problem in the discontinuance by the Federal Reserve
of its reporting program, although there
we'uld be considerable disappointment in certain areas.
He thought
Ilesars. Noyes and Brill would both say that the actual loss of useful
tatistical information would be minimal, and in any event there was
in Process basic improvement in the quality of information available
Census on consumer buying.
Chairman Martin commented that while it was hoped that there
14°u1
d be no complaints, there would probably be quite a few.
On
t0
He went
bring out that under the current proposal the Federal Reserve
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Federal Reserve Bank of St. Louis
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-11-
would be committed to pay until mid-1967 the incremental costs of the
Census Bureau's maintaining the monthly store sales series for 200
cities and areas.
The situation could then be reviewed, with the
P°asibility of payments to the Census Bureau beyond that date.
Governor Maisel inquired whether, even if the Census Bureau
could get appropriated funds to cover the costs of compiling local
data,
it
would prefer to use such money for other purposes.
Mr. Sherman replied that the Census program was moving further
into local and area data,there having been an increased interest shown
in collection of such information.
Census was putting into its budget
for the next fiscal year a request for funds to report local retail
trade statistics, with a department store breakdown, for some 60
standard metropolitan statistical areas, and it hoped to be able to
Publish such information beginning in the spring of 1967.
When it
came to going beyond approximately 60 such areas, however, Census
felt that other projects had greater priority.
Governor Mitchell commented that the department stores were
naw in direct competition with discount houses and other outlets,
reflecting their shifting competitive fortunes as well as shifts of
trade patterns.
For that reason, the System had gotten into trouble
With the department store series in the past, and local series generally
had
become quite poor.
He felt Census would find that it had to dis-
.
ti
nguish between the old-line department stores and the new-type outlets,
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and he did not know how many of the 200 local areas in the Federal
Reserve's current series could actually survive on the basis of the
Census standards.
As to the three districts in which Reserve Banks
Proposed to continue the local weekly sales series, he felt that some
statistical standards ought to be specified.
While he would like to
see the weekly series made useful because a week was a good time span
for measuring retail sales, the Reserve Banks should be required to
Produce data that were statistically valid.
After comments by the staff on difficulties in establishing
Precise standards in view of problems presented by certain department
store chains, Governor Mitchell observed that in any given case the
decision on the series would have to be made by the Reserve Bank concerned.
He felt that it should simply be required to insure that
the series was statistically valid.
If there could be reports from
4 reasonably meaningful group of stores, there was a great deal to
be said for continuing the local weekly data.
Chairman Martin noted that the main concern was not with the
c°st but with the quality of product.
If the Federal Reserve could
really do a meaningful job, he would be in favor of continuing the
hole program whatever the cost, but the System had not been able to
14°rk out a means of doing such a job and had been accused of issuing
Misleading statistics.
In the circumstances, it seemed a reasonable
approach to say that the quicker the System got out of the business
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the better, and he felt that it would be desirable to go forward with
the program described in Mr. Sherman's memorandum.
There being general agreement, the program described in the
memorandum was approved unanimously, along with the proposed letter
to the
Federal Reserve Banks.
A copy of the letter, with its enclosures,
is attached as Item No. 8.
All of the members of the staff except Messrs. Sherman, Kenyon,
and Hackley then withdrew from the meeting.
Application of State-Planters Bank and questions of general
Z.Z....t411 1/1.t.
Governor Mitchell referred to the discussion on June 11,
1965, concerning the application of State-Planters Bank of Commerce
and Trusts, Richmond, Virginia, to merge into itself The Tr -County
Bank, Mechanicsville, Virginia, the outcome of which was that three
Board members (Chairman Martin and Governors Shepardson and Daane)
favored approval of the application while three Board members (Governors
Robertson, Mitchell, and Maisel) favored denial.
This meant that the
merger failed of approval and could not legally be consummated.
Governor Mitchell said that upon further thought concerning
the matter he had arrived at the following view.
There was consider-
able reason to believe that if the tie vote was publicly announced
the applicant would request reconsideration, and probably such a reWould be granted.
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Federal Reserve Bank of St. Louis
The end result might well be approval of the
6/17/65
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aPPlication.
Such a chain of events would hardly be desirable from
a public relations standpoint.
Governor Mitchell also said that he had asked Mr. Hackley
to consider whether there was some feasible way of avoiding situations of this kind in the future.
Mr. Hackley referred to the internal rules of procedure that
the Board had adopted in the fall of 1961 for handling merger and
holding company applications.
He noted that one provision of these
rules indicated that the Board members would express their views
with respect to an application, after which a vote would be taken.
The Principal reason for incorporating this provision had been that
such a procedure would enable each Board member to hear the views of
the other members before committing himself by an actual vote.
How-
ever, it was also hoped that adherence to such a procedure would tend
to avoid
a stalemate, since if it appeared that the Board members'
Views were evenly divided an opportunity would exist for the Board
t°
a gree
to defer action until all members were present.
Mr. Hackley went on to say that even if a tie vote occurred
the
case was "in the bosom of the court," so to speak, until the Board's
decision was publicly announced, and on motion by any member the Board
coulA
ki agree to reconsider the case when all members were present.
Neve
rtheless, the Board might want to consider the adoption of a
general
rule of internal procedure under which it would be prescribed
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that in the event of a tie vote the matter would automatically be
deferred for final action when all Board members were present.
Such
a procedure might involve some delays, but it would not be as objectionable as announcement of a tie vote, which actually meant that
there had been no action by the Board, although failure to approve
of course amounted to denial.
It might be argued that there was
also good reason to avoid 3-2 or 3-1 decisions, Mr. Hackley continued,
but he felt there was some distinction.
The Board was required by
the Administrative Procedure Act to take action promptly and without
unreasonable delay on any application.
If a quorum was present and
action was taken, this was clearly action on the part of the Board,
as d istinguished from situations where the vote was 3-3 or 2-2.
In
such cases the applicant almost inevitably was going to seek reconsideration, which again would mean delay.
The Board might be vulnerable
if it should be learned that it had deferred the decision in a case
because of indication that the vote would be 3-2 or 3-1; but deferral
in
a case where a tie vote was indicated would not be subject to the
same criticism.
In summary, Mr. Hackley said, he would be inclined to recomIllend the adoption of a rule of internal procedure prescribing that
in
the future there would automatically be deferment of final action
if it appeared that the vote was going to be evenly divided.
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Federal Reserve Bank of St. Louis
E9
6/17/65
-16Governor Daane expressed the view that the general rule should
Provide for approval or denial by a majority of the Board (four members)
in merger and holding company cases.
Instead of contributing to delay,
he felt this should permit a more prompt scheduling of applications
and on many occasions permit the announcement of a decision more quickly.
Governor Mitchell also expressed the view that it would be desirable to defer final action when there were less than four votes for or
against an application, even in cases not involving a tie vote.
Governor Daane added to his previous comments by observing that
ePPlications should not be resolved by happenstance depending on which
Board members happened to be present at a given time.
Mr. Hackley indicated that such a provision could of course be
added to the internal rules of procedure, if the Board so desired,
although he continued to feel that there was a distinction between
eases involving tie votes and votes such as 3-2.
In his opinion the
Board might be criticized for postponing a decision in the latter situatioa.
Governor Robertson expressed the view that it would be wrong
to say in
a rule of procedure that the Board, with a quorum present,
e°111d not reach a decision and that in such circumstances applications
Quid have to be held up, but he saw merit in the suggestion that had
been
made by Mr. Hackley with regard to situations involving tie votes.
Re hoPed that any rule of internal procedure would be limited to tie
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Federal Reserve Bank of St. Louis
;GO
6/17/65
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vote situations, since he felt that the Board ought to be able to function whenever a quorum was present rather than to hold applications
over for an indefinite period of time.
In further discussion Mr. Hackley observed that in actual
Practice the Secretary was careful to schedule holding company and
merger applications for meetings when a maximum number of Board members
were present, particularly when cases appearing to present substantial
gnestions were involved.
Governor Daane, speaking further on behalf of the procedure
he had previously suggested, emphasized that it should result in
expediting cases that proved to be noncontroversial.
Under such a
Pr ocedure applications could he brought up whenever a quorum was
Present, and it might be found that at least four votes for or against
the application were available.
It should also insure equitable results
lor applicants.
Chairman Martin commented that he had tried to handle these
matters in such a way as to avoid bringing up applications in circumstances where the result might be, for example, a 3-2 decision.
As
t0 the State-Planters case, he pointed out that at the meeting on
'Tune 11
question was raised about the possibility of deferring a final
decision, but it had been decided not to follow such a course.
As
11r * linckley had said, however, the matter was still "in the bosom of
the court.n
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Federal Reserve Bank of St. Louis
6/17/65
-18Governor Mitchell then moved that the State-Planters applica-
tion be reconsidered by the Board with all members present prior to
a nnouncement of a decision, and this motion was carried unanimously.
There followed further discussion of the comments made earlier
by Mr. Hackley regarding the presently-stated rule of procedure whereby
it was contemplated that views would be expressed by Board members prior
to the taking of a vote on a merger or holding company application.
It was pointed out that normally it should be possible to avoid tie
votes by adhering to this method.
Governor Mitchell made the comment
that it had always been customary for the Chairman to give the Board
members a chance to raise questions before a vote was taken and that
frequently Board members had indicated something of their judgment in
those preliminary discussions.
In contrast, he was not sure that a
sounding-out procedure would quite conform to the way in which decisions
Should appropriately be reached.
On the other hand, Governors Robertson
and Maisel indicated that they would favor following a procedure whereby
there
would be general discussion by the members of the Board of the
application prior to the taking of a vote.
After Governor Daane joined
in this view, there appeared to be general agreement that such a practice
Ilould be followed in the future.
There ensued additional discussion concerning whether it would
be desirable to adopt an amendment to the rules of internal procedure,
during which Governor Daane suggested that some time when a full Board
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was present consideration be given to the possibility of adopting a
rule to require that decisions on merger and holding company cases be
made by a vote in which at least four members of the Board favored
the action either to approve or deny the application.
Chairman Martin then commented that it was difficult to make
any hard-and-fast rule on such matters.
a
He pointed out that the
lternative suggestion made earlier by Mr. Hackley was that there be
an amendment to the rules of internal procedure to specify that cases
involving tie votes be deferred for consideration by a full Board.
The discussion concluded with an understanding that Mr. Hackley
would review the rules of internal procedure in the light of the points
raised at this meeting and submit a draft of amendment for the Board's
c°nsideration that would specify that cases involving tie votes would
be deferred for consideration by the full Board.
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. 9)
aPProving the reappointment of William A. Anttila as examiner.
Telegram to the Federal Reserve Bank of Richmond (attached Item
Z"--L.12) approving the reappointment of James T. Sexton as assistant
4111iner.
1„
Letter to the Federal Reserve Bank of Richmond (attached Item
•
approving
the reappointment of Richard J. Higgerson as assistexaminer
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Memoranda recommending the following actions relating to the Board's
Staff:
APtasliaLEILL.
t1
Sara Jane Keener as Records Clerk, Office of the Secretary, with
basic annual salary at the rate of $4,480, effective the date of entrance
Upon duty.
Robert W. King as Economist, Division of Research and Statistics,
With basic annual salary at the rate of $9,535, effective the date of
entrance upon duty.
Secretary
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Federal Reserve Bank of St. Louis
BOARD OF GOVERNORS
OF THE
Item No.
6/17/65
FEDERAL RESERVE SYSTEM
WASHINGTON, O. C. 10551
AOONCOSI
a
IAL. C000UPDNDCNOi
TO THC COAND
June 17, 1965
Board of Directors,
Central Trust Company,
Rochester, New York.
cheater,
N.
Y.,
Gentlemen:
The Board of Governors of the Federal Reserve
SYetem approves the establishment by Central Trust Company,
Rochester, N. Y., Rochester, New York, of a branch in the Panorama Plaza Shopping Center (about 510 feet from your
existing branch at 66 Panorama Plaza), Town-of Penfield,
Monroe County, New York, provided the branch is established
within one year from, the date of this letter.
Very truly yours,
(Signed) Karl E. Bakke
Karl B. 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 )
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Federal Reserve Bank of St. Louis
Item No. 2
6/17/65
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS
arricim. CORRESPONDENCE
TO THE HOARD
June 17, 1965
Mr. Eliot J. Swan, President,
Federal Reserve Bank of San Francisco,
San Francisco, California. 94120
Dear Mr. Swan:
In accordance with the recommendation in your letter
of June 3, 1965, the Board of Governors has changed the classification of member banks in the Twelfth District for purposes
of electing Class A and Class B directors to the following:
Group
Banks with capital and surplus of:
1
$8,000,000 or more.
2
In excess of $1,150,000, and less
than $8,000,000.
3
$1,150,000 or less.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
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Federal Reserve Bank of St. Louis
Item No. 3
6/17/65
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
June 17, 1965
11r. Joseph B. Hall,
Federal Reserve Agent,
Federal Reserve Bank of Cleveland,
Cleveland, Ohio 44101.
bear Mr. Hall:
As requested in your letter of June 3, 1965, the Board of
GOy
ernors approves the appointment of Mr. John D. Groppe as Federal
serVe Agent's Representative at the Cincinnati Branch to succeed
'r. Richard P. Oettinger.
Mr. Groppe
This approval is given with the understanding that
Board
the
and
Agent
Reserve
be solely responsible to the Federal
that,
except
duties,
his
, Governors for the proper performance of
11f
(
or a
varing the absence or disability of the Federal Reserve Agent
t
Assistan
the
to
be
cianoY in that office, his responsibility will
pae
s.
eral Reserve Agent and the Board of Governor
Will
as Federal
When not engaged in the performance of his duties
of
approval
the
with
may,
t.h-crve Agent's Representative, Mr. Groppe
the
of
charge
in
t
Presiden
cs r Federal Reserve Agent and the Vice
'
will not be
cinnati Branch, perform such work for the Branch as
Representative.
Agent's
Reserve
consistent with the duties as Federal
the4._
informed of
It will be appreciated if Mr. Groppe is fully
staff of the
the
of
member
a
as
responsibilities
F., 4-1uPortance of his
independence from
Reserve Agent and the need for maintenance of
responsibilities.
e O perations of the Bank in the discharge of these
of Office
Please have Mr. Groppe execute the usual Oath
Vhich
along with
s
Governor
of
Board
be forwarded to the
guti Should then
ent.
appointm
his
"-cation of the effective date of
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
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Federal Reserve Bank of St. Louis
Item No. 4
6/17/65
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 201:131
ADORCO111 °maw- OORRESPONDICNCIC
TO TUC •OAND
June 17, 1965
compENTIAL (Eg)
Mr. C. J. Scanlon, President)
Federal Reserve Bank of Chicago,
Chicago, Illinois 60690.
Dear Mr. Scanlon:
As requested in your letter of June 3, the Board
of Governors approves, retroactive to June 1, 1965, payment
by the Federal Reserve Bank of Chicago to the Bank's
Plumbers and Carpenters of the following annual salaries,
which are above the maximum of the grades in which the
Positions are classified:
Title
Head Carpenter
Carpenters
Plumbers
Annual Salaries
$10,088.00
9,079.20
9,360.00
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
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Federal Reserve Bank of St. Louis
Item No. 5
6/17/65
BOARD OF GOVERNORS
OF; THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
June 17, 1965
gONFIDENTIAL (FR)
Mr. Alfred Hayes, President,
Federal Reserve Bank of New York,,
New York, New York 10045.
Dear Mr. Hayes:
The Board of Governors apRroves.the appointment of Mr.
Fred W. Piderit, Jr. as Vice President in charge of the Bank Supervision and Relations function at the Federal Reserve Bank of New York,
effective July 1, 1965.
The Board also approves, payment of salaries to Mr. Piderit
and other officers of the Federal!Reserve Bank of New York listed
below, at rates indicated, for the period July 1 through December 31,
1965:
Annual Salary
Title
Name
Fred W. Piderit, Jr.
Leonard I. Bennetts
Robert J. Crowley
William M. Schultz
Richard A. Debs
Robert C. Thoman
Vice President
Manager
Manager
Assistant General Auditor
Assistant Counsel and
Assistant Secretary
Manager
$24,000
14,500
17,000
15,000
15,000
17,000
Buffalo Branch
John T. Keane
Harry A. Curth, Jr.
Cashier
Assistant Cashier.
• 17,000
13,000
Salary rates approved are those fixed by your Board of
Directors as reported in your letter of June 7.
Very truly yours,
(Signed) Merritt Sherman
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Federal Reserve Bank of St. Louis
Merritt Sherman,
Secretary.
Item No. 6
6/17/65
UNITED STATES OF AMERICA
BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D. C.
In the Matter of the Application of
CITIZENS RANK
1
1
1
1c)r approval of consolidation with
Security State Bank, Gayville, So. Dak.,1
Farmers State Bank, and
The Security State Bank
ORDER APPROVING CONSOLIDATION OF BANKS
There has come before the Board of Governors, pursuant to the
Bank Merger Act of 1960 (12 U.S.C. 1823(c)), an application by Citizens
Bank, Vermillion, South Dakota, a State member bank of the Federal Reserve
SYSteln,
for the Board's prior approval of the consolidation of that
bank and Security State Bank, Gayville, So. Dak., Gayville, South
Dakota, Farmers State Bank, Tabor, South Dakota, and The Security State
13ank, Uakonda, South Dakota, under the charter and title of the applicant.
As an incident to the consolidation, the four offices of the Gayville,
Tabor, and Wakonda banks would be operated as branches of the applicant
bank. Notice of the proposed consolidation, in form approved by the
Board, has been published pursuant to said Act.
the light of
Upon consideration of all relevant material in
the factors set forth in said Act, including reports furnished by the
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Federal Reserve Bank of St. Louis
?070
-2-
Comptroller of the Currency, the Federal Deposit Insurance Corporation,
and the Attorney General on the competitive factors involved in the
proposed consolidation,
IT IS HEREBY ORDERED, for the reasons set forth in the
Board's Statement of this date, that said application be and hereby
is approved, provided that said consolidation shall not be consummated
(a) within seven calendar days after the date of this Order or
(b) later than three months after said date.
Dated at Washington, D. C., this 17th day of June, 1965.
By order of the Board of Governors.
Voting for this action: Chairman Martin, and
Governors Robertson, Shepardson, Mitchell,Daane,
and Maisel.
Absent and not voting:
Governor Balderston.
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
(stAL)
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Federal Reserve Bank of St. Louis
Item No. 7
6/17/65
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
APPLICATION OF CITIZENS BANK FOR APPROVAL
OF CONSOLIDATION WITH SECURITY STATE BANK, GAYVILLE, SO. DAK.,
FARMERS STATE BANK, AND THE SECURITY STATE BANK
STATEMENT
Citizens Bank, Vermillion, South Dakota ("Citizens"),
14th total deposits of about $4 million, has applied, pursuant to
the Bank Merger Act of 1960 (12 U.S.C. 1828(c)), for the Board's
Pri°r approval of the consolidation of that bank and Security State
Bank, Gayville, So, Dak., Gayville, South Dakota ("Gayville Bank"),
*earslers State Bank, Tabor, South Dakota ("Tabor Bank"), and The
Security State Bank, Wakonda, South Dakota ("Wakonda Bank"), with
dePosits of about $1.7 million, $1.2 million, and $2.7 million,
sPactive1y.1/
The banks would consolidate under the charter and
title of Citizens Bank, a State member bank of the Federal Reserve
S8ternb
As an incident to the consolidation, the sole offices of
Ca/717111a Bank and Tabor Bank and the two offices of Wakonda Bank
14°uld become branches of Citizens Bank, increasing the number of
its offices from one to five.
Under the law, the Board is required to consider, as to
each
of the banks involved, (1) its financial history and conditiou
eposit figures are as of December 31, 1964.
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Federal Reserve Bank of St. Louis
-2-
(2) the adequacy of its capital structure, (3) its future earnings
Prospects, (4) the general character of its management, (5) whether
its corporate powers are consistent with the purposes of 12 U.S.C.,
Chapter 16 (the Federal Deposit Insurance Act), (6) the convenience
and needs of the community to be served, and (7) the effect of the
transaction on competition (including any tendency toward monopoly).
The Board may not approve the consolidation unless, after considering
all of these factors, it finds the transaction to be in the public
in
terest.
Banking factors. - The financial histories and conditions
of Citizens, Tabor Bank, and Wakonda Bank are satisfactory.
This
is true also of the capital structure, earnings prospects, and
InallagemPnt of each of these three banks,
Gayville Bank - which only
ecently acquired new management regarded as satisfactory - has had
4
less than satisfactory asset condition. Effectuation of the
.1)(1Posal would permit improvement in the asset condition and capital
position of what has been Gayville Bank and provide a basis for
-rroved earnings relative to that bank.
The asset condition and
caPital structure of the resulting bank would be satisfactory, its
itlanegement would be competent, and its earnings prospects would be
favorable
The four participating banks are controlled by the same
individual through direct or indirect ownership of a majority of the
stock of each of the banks.
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Federal Reserve Bank of St. Louis
_3-
There is no indication that the corporate powers of the
banks are, or would be, inconsistent with the purposes of 12 U.S.C.,
Chapter 16.
Convenience and needs of the communities. - The offices
of the four participating banks are located in the contiguous
South Dakota counties of Clay, Yankton, and Bon Home, situated in
the southeastern part of the State.
Vermillion (with a population
°f about 6,200) and Wakonda are in Clay County.
Gayville and
V°1in (the location of Wakonda Bank's second office), are in
'iaukton County, and Tabor is in Bon Home County.
Wakonda, Volin,
CaYville, and Tabor are small rural communities with populations
arlging from about 200 to 400.
The population of the trade area
erved by Vermillion is over 16,000, while the population of the
trade areas
served by the four smaller towns exceeds 6,000.
The
Ilias°uri River forms a natural barrier between the three counties
and the State of Nebraska on the south.
The economy of the total area involved is based on
4811-cu1ture, chiefly feed crops and livestock feeding.
The trend
1.4 the
area is toward fewer farms, larger farms, and larger capital
i/Westment per farm unit.
The only banking offices in Wakonda, Tabor, Gayville, and
volt
11 are those of the participating banks. The only other commercial
bank,
Lng office in Vermillion is a branch of the National Bank of
8°4th
Dakota, Sioux Falls, 65 miles to the north.
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Federal Reserve Bank of St. Louis
Should the
?LI
-4consolidation be consummated, the branches of the resulting bank
Ilould range from nine miles to twenty-two miles from the nearest
office of another commercial bank.
Each of the four participating banks has had to sell or
Participate portions of several loans in order to avoid overlines.
If the proposal were effectuated, the lending limit of the resulting
bank would be $150,000, compared to lending limits ranging from
$15,000 to $50,000 for the individual participating banks.
It appears
that the increased lending limit would have been sufficient to
cover most of the loans sold or participated.
The resulting bank
s%pects to provide trust services at each of its offices.
The
evidence indicates that this would fulfill a need in the service
ar
2/
of the resulting bank.
While it is not claimed that credit needs of the communities
concerned are not being met, consummation of the proposal would make
available in the areas involved improved banking services to
customers of the four banks, and banking offices with capabilities
111°te consonant with the economic development in the area.
This
14°uld include the cessation of exchange charges at offices of the
three
banks that would become branches of Citizens, a member bank.
Competition. - As the four banks are, directly or indirectly,
44der the common control of one individual, they are not to be regarded
48 effective competitors of one another. Although there is a slight
Ihe area from which a bank derives 75 per cent or more of its
deposits of individuals, partnerships, and corporations.
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Federal Reserve Bank of St. Louis
‘4!" -
't3
..5
(Iverlapping of the service areas of the four banks, in view of their
8e, location, and the essentially local nature of their business,
the
potential for competition among them would be limited even if
ecnamon ownership were terminated.
The resulting bank would rank second in size among the
sixteen commercial banks with offices in the area that would be served
by
Upon consummation of the transaction, Citizens' share of the
"sits in banking offices in that area would increase from just
under six per cent to almost fourteen per cent.
On this basis, the
14qest bank in the area is American State Bank, Yankton, which has
twenty-five per cent of the area's deposits.
The First
kko.
Ls National Bank, Yankton, would rank third with over thirteen
cent of the area's deposits, while the Vermillion branch of
liati°nal Bank of South Dakota, Sioux Falls, would be in fourth place
ith
1°.5 per cent.
Consummation of the transaction would place Citizens in
a po
sition to compete more effectively with the Vermillion branch of
the National Bank of South Dakota (a subsidiary of The First Bank
Nei
Ccmporation, Minneapolis, Minnesota, a registered bank holding
e'411)atlY), and might stimulate competition for American State Bank.
he
is no evidence that consummation of the transaction would have
44 (Iverse competitive effect on any of the smaller banks in the
e'viee area of the resulting bank.
Most of these banks serve
14rItal-1Y the small communities in which they are located.
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Federal Reserve Bank of St. Louis
-6-
Summary and conclusion, - The proposed consolidation of
four relatively small banks in three contiguous counties in southeastern
South Dakota would not adversely affect any bank in the service area
of the resulting bank, although it would tend to provide stronger
competition for the larger banks located and doing business in the
area.
Furthermore, the resulting bank would be in a position to
Provide expanded banking services in keeping with the trend in the
agricultural area involved towards larger and fewer agricultural
Accordingly, the Board finds that the proposed consolidation
Ilould be in the public interest.
4114e 17, 1965.
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Federal Reserve Bank of St. Louis
Item No. 8
6/17/65
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADONCUU OFFICIAL. CORMIPONDINCIE
TO TM1 BOARD
June 30, 1965.
Dear sir:
4esidThis letter refers to the action of the Conference of
dents in March of this year approving a general program for
"
tinuing most of the Federal Reserve System's activities in
coli
cove:.?ting department store data after completion of reports
January 1966.
Board has reviewed the program proposed by the
Eippr,ents and, in general, concurs in it. This includes making
to (griate announcements to respondent stores and giving notice
lst
for ti"
persons and firms whose names are on the mailing lists
COpli "e Present reports of the Board and the Reserve Banks.
of a letter for use in advising respondent stores (Exhibit
ate :
p ncil of a notice for more general distribution (Exhibit "B")
-"Closed,
4e8idThe
While the letters of the individual Reserve Banks to
1,:"Pond
Forti„-ent stores may be varied to meet local conditions, any
kerkte'na containing statements of general policy or of arrangecoritaiwith the Bureau of the Census should adhere to the language
1q11. Vied in enclosure "A." To complete the Board's records, it
&th";e appreciated if in due course you will furnish this office
edviai44° copies each of the letter and notice that you use in
rig of the change.
the " No press release will be issued regarding these changes,
keee4 notice" will be sent to the press as well as to others
'ving trade releases from either the Board or the Banks.
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Federal Reserve Bank of St. Louis
-2-
Also enclosed is a copy of a letter that Chairman Martin
:
1
P1 18 to send to the President of the National Retail Merchants
i:ciation, Mr. Carl N. Schmalz. (See'Ekhibit "C") Howeve'r; this
het
"will not be dispatched until word is received from each
ot!
ident as to his Bank's specific plans with respect to termination
1411 11tinuation of the reporting system after next January. Reserve
140..8 should, of course, defer giving notice to their respondent
lir.Las of their plans until the Chairman's letter has been sent to
S
chmalz.
In advising the Board of your plans, please state
epecif4
kw,
4cally whether your Bank will discontinue its present weekly
tor
within monthly department store sales report for cities and areas
Your District.
It is assumed that all Reserve Banks will discontinue
the de
1966. Partmental report with the completion of data for January
The Board leaves to the individual Reserve Banks the
eithe," as to continuation of local city or area sales data,
on a weekly or monthly basis. If such data are compiled
by
topi°11t Bank after next January, the Board will wish to receive
i4Of the summary reports, but it will not wish to receive
tOdiv
es
those-Val store data thereafter. However, the Board feels that
to as-ib uanke that continue reports should review them carefully
'jute that only meaningful, representative data are published..
decisi
y
The Board has approved the recommendation of the Conference
Colleu
:
aidents that the System Make an arrangement with the Bureau of
thotlthi tinder which that Bureau will undertake to compile and publish
144teivY department store sales comparisons for any of the approxiIk
h 4thi 2°0 cities and local areas now shown in Federal Reserve Bank
'Oder .Y..tePorts for which representative data can be collected.
tileurr`uat arrangement the System would pay the incremental costs
by Census, estimated at $30,000 per year. Rather than
°to 4 this cost among individual Reserve Banks, the Board is
Dt.r,sPit ::
;gilt t
u,' to assume the expense until June 1967, with the understanding
metertje matter will be reviewed in the spring of that year to
'ne what should be done after that date.
The monthly reports prepared by Census will use the
!
tattd,,
'espott'u Industrial Classification as the basis for the list of
dent stores. The availability and timeliness of data for an
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Federal Reserve Bank of St. Louis
-3-
itil:
ildividual city or area will depend upon the cooperation of the
c "es in submitting their reports. It is expected that such
rftParisons would appear in table 11 of the monthly retail trade
'rt issued by Census about the 10th of the second month following
covered by the comparisons (see sample copy enclosed), but
IVvidual city compilations will be available much earlier if
Presentative information is received sooner by Census.
Z
Census will not release comparisons that it believes to
b un
lic-rePresentative of the department store trade, as measured by
es in the Standard Industrial Classification. Except for a
:
fi'llsition period of a few months, Census would not wish to release
pires for
any city or area for which a Federal Reserve Bank
di sbes a monthly department store sales comparison based on a
pli etent sample of stores. In other words, different reports
rting to measure essentially the same segment of trade for the
e:
Period
the-h
are not to be issued both by the Bureau of the Census and
pro '‘etierve Banks. For this reason, it becomes important to know as
taotini
tP
utlY as feasible whether any Reserve Banks plan to collect
b aepaulY data of department store sales and release comparisons
uPon such reports.
thAs to weekly data, discontinuance by the Reserve Banks •
the eir present reports will, so far as is known, terminate completely
umeavailability of such information. Census would be willing to
by 4take weekly local reports for many of the cities now covered
tilitv e Federal Reserve, provided the costs of initiating and main4414'4 such a service were financed out of other than appropriated
the
but the Board totes that most Reserve Banks do not favor
$250‘)Ystem underwriting such a cost, estimated at from $175,000 to
ablet° a year. The Board anticipates that there will be considerNAX-811PPointment on the part of the trade and the general public
kreci'ing the termination of weekly data. However, it is not pre41 vi t° sPonsor and finance Census collection of such statistics
Nsiefil4 of the apparent conclusion of a large majority of the
ente that there is not sufficient need for the weekly data,
:
qthe
coll'for internal or for public purposes, to justify their
ection,
each
In this connection, the Board would like to receive from
fturle resident an expression of his views at this time as to the use18 to:
the public and to analysts generally of weekly data for
tilere'lual cities and local areas covering retail sales ,or a segment
°', such as GAF or department stores.
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Federal Reserve Bank of St. Louis
1.17;1.r*
-4-
A number of questions as to disposition of questionnaires
and aA-. 6 to sales reports now received from national chains will no
ot arise between now and the end of January 1966, and these may
0_4_1..taken up directly with the Director of the Division of Research
nil Statistics or at future meetings of the System Research Advisory
v,otreaittee.
It is not possible to know at this time whether there will
be a
Re. substantial volume of inquiries regarding the decision of the
:
TI etve Banks to discontinue most of the department store statistics.
Board will plan, in general, to refer such inquiries as may come
ts offices to the Reserve Banks concerned for appropriate handling
n they relate to changes in availability of city or local area
data
Very
Lily yours,
Merritt She an,
Secretary.
Iktelosurea,
IRE PRESIDENTS OF ALL FEDERAL RESERVE BANKS.
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Federal Reserve Bank of St. Louis
N7LL
Exhibit "A"
(6/30/65)
Letter to be sent by Reserve Banks planning to terminate
dePartment store reporting at the end of January 1966.
(To be dispatched after Chairman Martin's letter to
?resident of N.R.M.A. has been mailed.)
To Stores Reporting Sales Data
to the Federal Reserve Bank of
tear
In December 1963, our Bank wrote to you outlining general
Piens for the eventual withdrawal of the Federal Reserve from the collection
Of
dePartment store statistics.
For some time the Bureau of the Census has
been publishing department store sales at the national level on a weekly
"
4 monthly basis, and the monthly data also are compiled and published
fel' selected regions.
In addition, Census reports now include monthly
841
"comparisons for each of the 20 largest metropolitan areas for
"
"es specializing in department-store types of merchandise (general
81"ehati'dise, apparel, and furniture and appliance groups, referred to
48 "eon, although data are not presently shown for department stores
separately.
This Bank is continuing with its plan to disengage on an
btderly
basis from the collection of retail trade statistics, and the
13144)(341e of this letter is to let you know of changes that will be made
next
Year, as outlined below:
The Federal Reserve monthly report of sales by
departments will be discontinued with the report
covering January 1966.
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Federal Reserve Bank of St. Louis
-2-
This Bank's weekly report of sales for major
metropolitan areas in the District will be discontinued with the report for the last week of January
1966.
This Bank's monthly report of total department
store sales by local areas will be discontinued with
the report for January 1966, but arrangements have
been made for the Bureau of the Census to continue,
under contract with the Board of Governors of the
Federal Reserve System, the collection and publicatidn of such information at least until June 1967.
With the support of the Federal Reserve System and
the trade, the Bureau of the Census will undertake
to provide monthly compilations of total department
store sales for the metropolitan areas and other
centers for which such reports are now issued by
the Federal Reserve Banks.
The program of Census contemplates the development of monthly
reP°rts of total retail and/or GAF sales for the 60 largest standard
metropolitan statistical areas (list attached), with department store
sales shown separately as a component of the area totals.
Reports pre-
Pared under the contract with the Federal Reserve for areas other than
these '60 SMSAs would be *discontinued in due course unless some other
err
angement were made for financing their continuation.
Where the reports issued by the Bureau of the Census do not
Meat all the needs of the trade or other local interests and the trade
desires to arrange for continuation of any of the information now
scheduled to
with
be terminated in 1966, this Bank will cooperate fully
responsible representatives of local interests to facilitate transfer
to an agent of their choice of any part, or all, of the retail trade
date it
is collecting currently.
We will be prepared to provide during
4 transition period general technical information and advice regarding
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
°lir statistical procedures, and insofar as may be authorized by particiPating stores, any necessary background data previously reported to us.
4rrangements for continuation of reporting programs might be developed,
4
'
r example, with bureaus of business research in local universities,
trade
associations, accounting firms, or similar establishments.
The excellent cooperation of department stores over the
Years which has made possible the timely reporting of sales of these
in local areas and the nation has been greatly appreciated by
he Federal Reserve System as well as other users of the information.
The
Changes being made in collection and publication of retail trade
data
some of which are outlined in this letter, reflect the efforts
Of
ulOY individuals and much study over a considerable number of years.
I believe the results will be a significant improvement in the statistical
inf°rmation on retail trade which, over time, will serve effectively many
c) the needs of the trade, government, and the public.
If you or your
41414kiates have questions on the program, Mr.
of
°ur
Research Department will be glad to assist you in any way possible.
Sincerely yours,
President.
Attachment.
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Federal Reserve Bank of St. Louis
SIXTY LARGEST STANDARD METROPOLITAN STATISTICAL AREAS--1960
S York, N.Y.
c;:h,steilanaog:leisii.Long
Beach'
Calif.
b‘tt.lacielphia, Pa. -N• J•
'41 I5it, Mich.
Prancisco-Oakla
nd, Calif.
t(Irl,
Mass.
St tsburgh,
W• Lel'is, Pa.
levelanda.sbing
Mo,-Ill.
tort„ ri.e.-Md.
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Federal Reserve Bank of St. Louis
Tampa-St. Petersburg, Fla.
Louisville, Ky.-Ind.
Indianapolis, Ind.
Dayton, Ohio
San Antonio, Texas
Columbus, Ohio
Phoenix, Ariz.
Albany-Schenectady-Troy, N.Y.
San Jose, Calif.
Birminghan, Ala.
Memphis, Tenn.
Jersey City, N.J.
Rochester, N.Y.
Norfolk -Portsmouth, Va.
Gary-Hammond-East Chicago, Ind.
Fort Worth, Texas
Syracuse, N.Y.
Hartford, Conn.
Akron, Ohio
Oklahoma City, Okla.
Youngstown-Warren, Ohio
Sacramento, Calif.
Honolulu, Hawaii
Allentown-Bethlehem-Easton, Pa.-N.J.
Springfield-Chicopee-Holyoke, Mass.
Omaha, Nebr.-Iowa
Toledo, Ohio
Jacksonville, Fla.
Tulsa, Okla.
Richmond, Va.
Exhibit "B"
(6/30/65)
Notice Regarding Termination of the
Department Store Statistics Program
(To be sent to nonrespondent mailing lists at the Board of Governors and
:t the Reserve Banks that discontinue all trade reporting activities. To
e mailed at time respondent store letters are dispatched.)
On January 31, 1966 the collection and publication of informadepartment store sales will be discontinued as a nationwide Federal
ti
"on
Reserve System statistical program.
During the past few years, national
statistical agencies in consultation with representatives from retailing
have been working to improve existing retail trade statistics, collection
"which is centered in the U.S. Bureau of the Census.
Early in 1964, the Federal Reserve discontinued publication
f national figures on total weekly and monthly department store sales,
were also being released in reports of the Census Bureau.
Most
f the
remaining portions of the Federal Reserve department store
stati , 8
stlc program are slated for discontinuance at the end of January
1966. The weekly report of total sales by local areas will be dise°ntinued at that time by most of the Reserve Banks, as well as by the
of Governors, and the monthly reports of sales broken down by
nol
"
de
llst.tments for major metropolitan areas and for the United States as
"114)1e will then be terminated.
The Federal Reserve Banks and the Board of Governors will
4180
scontinue the collection and release of monthly reports of total
di
4eParf
--ment store sales for local areas after the close of January 1966,
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Federal Reserve Bank of St. Louis
-2but arrangements have been made for
the Bureau of the Census to continue,
under contract with the Board of Governors of the Federal Reserve System,
these reports at least until June 1967 for substantially the same list
of cities and local areas that are now presented in the Federal Reserve
monthly reports, provided that the department stores in any given locality
furnish data to make the reports representative.
The termination date for the Federal Reserve reports--January
1966--is set a considerable distance in the future to allow ample time
for all groups to establish alternativ sources
for compiling parts of
e
the existing program that will be discontinued by the Federal Reserve.
burin& this interval, the Federal Reserve Banks are prepared to cooperate
in
any way possible to assure an orderly transfer to successor agencies
by the
termination date.
At the present time, the Bureau of the Census publishes weekly
l'etail sales data
for the United States as a whole, and it also publishes
monthly retail sales information for the United States, for Census
divisions, for large States, and for major metropolitan areas--much of
it broken down by line of trade.
Future plans of the Bureau of the
Census call for further expansion of retail sales information for major
Metz.
°Politan areas that will be more indicative of consumer spending
t444 the existing department store statistics.
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Federal Reserve Bank of St. Louis
Exhibit ."C"
(6/30/65)
(Date for mailing to
be determined later)
41% Carl N. Schmalz,
?resident,
ilnational Retail Merchants Association,
4 West 31st Street,
"ew York, New York.
,..
nr.
Schmalz:
My letter of November 19, 1963 to Mr. H. H. Bennett, then
...Ls:lent of the National Retail Merchants Association, outlined plans
for ...
4 number
of changes in the Federal Reserve reports of department
stere trade. These changes looked toward both an improvement in the
qUali
tY of data available on retail trade and an eventual withdrawal
of
the
Federal
Reserve from work in that area, since the Federal Reserve
belt
eves that the Bureau of the Census is the appropriate agency for
°114tting whatever is needed in the way of a Federal Government program
for
retail trade statistics.
A number of changes in the Federal Reserve reports were
eff
eeted early in 1964, and the purpose of this letter is to let you
1410w„,
further changes that are planned for early 1966. These changes
e0utlined in
some detail in the enclosed copy of a letter to be sent
1/11cTtb, by
' most of the Federal Reserve Banks to respondent stores in
thet
d istricts.
15Y the
Also enclosed is a draft of notice that will be sent
Board and by the Reserve Banks to nonreporting persons and firms
ell the
mailing lists for the present trade data.
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Federal Reserve Bank of St. Louis
Mr. Carl N. Schmalz
-2-
Briefly, the Federal Reserve reports on department store sales
(as well as a small amount of information collected on a few closely
related lines of retail trade) will be discontinued after completion of
the
reports covering January 1966, except in the case of a few of the
e.deral Reserve Banks that plan to continue the collection of a limited amount
°I lOCal
weekly (and possibly monthly) sales data from department stores.
The weekly reports issued by the Reserve Banks in all but three Federal
Reserve districts (Boston, Cleveland, and Dallas) will be terminated,
as will the monthly reports of sales broken down by departments and
the monthly reports of total store sales by cities and local areas.
The weekly and monthly reports of department store sales issued by the
11°4rd of Governors covering individual cities and areas as well as its
dePar tmental sales summary will also be terminated at that time.
In the case of the monthly reports of the Federal Reserve
Banks
covering sales by cities or local areas, arrangements have been
Insde for the Bureau
of the Census to continue to collect and publish
data for
any of the approximately 200 cities and local areas now
eOve
red individually in the Reserve Bank reports for which stores are
Preh.,
"'red to furnish representative basic data. This will continue at least
44til
mid -1967. The program of Census contemplates the development of
In°11thi
Y reports of total and/or GAF sales for the 60 largest standard
trletrov°1itan statistical areas, with department store sales shown
8ePar„
ely as a component of the area totals.
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Federal Reserve Bank of St. Louis
Continuation of local
Mr. Carl N. Schmalz
data for cities outside the 60 SMSA's contemplated in the Census program
will depend upon obtaining financing to cover the out-of-pocket costs of
Census in preparing data for the additional cities.
As indicated in the letter that the Reserve Banks will soon
be
sending to respondent stores, ample notice is being given of these
changes in order to permit any interested groups to make arrangements
for continuation by another agency of the reports that will not be
available from the Federal Reserve after those covering January 1966.
The Reserve Banks will, of course, be happy to be of all possible
assistance to respondent stores in arranging for transfer of such
reporting activities to another agency of the stores' choice.
The Federal Reserve believes that considerable progress has
b
made during the past few years in laying the basis for improved
information on retail trade and that further improvement may be looked
f°t in the future.
This has resulted from contributions by many persons
(Iller a period of years, including those who served on the Committee of
4" established in the Spring of 1960.
The representatives of the
Ilational Retail Merchants Assoication who served on that Committee-Mr. s
aal Flanel and Mr. Alfred E. Eisenpreis--have made many constructive
sua8esti0n5 in connection with the development of improved trade informatio,
",and they have shown a broad understanding of the needs not only of
the trade but of other users for reliable data in this area.
We greatly
aPilreciate the assistance that your Association has given to the
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Federal Reserve Bank of St. Louis
4090
Mr, Carl N. Schmalz
-4-•
development of this program and, while the Committee of Five as such
may have completed its work, we look forward to continued cooperation
With your representatives in carrying forward the program for improved
quality of information regarding this phase of economic activity.
Sincerely yours,
Wm. McC. Martin, Jr.
Enclosures
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Federal Reserve Bank of St. Louis
Item No.
6/17/65
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20531
ADOMESS OFFICIAL COPIPICSPONOiNCE
TO THC BOARD
June 18, 1965.
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
Mr. Quackenbush's letter of June 14, 1965, the Board
approves the reappointment of William A. Anttila as an
examiner for the Federal Reserve Hank of New York,
effective June 24, 1965.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
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Federal Reserve Bank of St. Louis
Item No. 10
6/17/65
TELEGRAM
LEASED WIRE SERVICE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
June 17, 1965.
NOSKER - RICHMOND
Reurlet June 16, 1965, Board approves reappointment of
James T. Sexton as assistant examiner for Federal Reserve
Bank of Richmond effective today.
(Signed) Kenneth A. Kenyon
KENYON
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Federal Reserve Bank of St. Louis
BOARD OF GOVERNORS
Item No. 11
6/17/65
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
AD
R. MS OFFICIAL CORRIC•F
TO THE BOARD
June 17, 1965.
Mr. John L. Nosker„ Vice President,
Federal Reserve Bank of Richmond,
23213
Richmond, Virginia.
Dear Mr. Nosker:
In accordance with the request contained in your
letter of June 11, 1965, the Board approves the reappointment of Richard J. Higgerson as an assistant examiner for
the Federal Reserve Bank of Richmond, effective today.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
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Federal Reserve Bank of St. Louis
DIENCE
@FedFRASER