The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Minutes for To: Members of the Board From: Office of the Secretary June 19, 1958 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, if you were present at the meeting, please initial in column A below to indicate that you approve the minutes. If you were not present, please initial in column B below to indicate that you have seen the minutes. A Chm. Martin Gov. Szymczak Gov. Vardaman 1/ Gov. Mills Gov. Robertson Gov. Balderston x 0.4)73 Gov. Shepardson 1/ In accordance with Governor Shepardson's memorandum of March 8, 1957, these minutes are not being sent to Governor Vardaman for initial. 1800 Minutes of the Board of Governors of the Federal Reserve System on Thursday, June 19, 1958. PRESEM: Mr. Mr. Mr. Mr. The Board met in the Board Room at 10:00 a.m. Martin, Chairman Mills Robertson Shepardson Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Carpenter, Secretary Kenyon, Assistant Secretary Thurston, Assistant to the Board Leonard, Director, Division of Bank Operations Johnson, Director, Division of Personnel Administration Hackley, General Counsel Masters, Director, Division of Examinations Daniels, Assistant Director, Division of Bank Operations Goodman, Assistant Director, Division of Examinations Hooff, Assistant Counsel Items circulated to the Board. The following items, which had been circulated to the members of the Board and copies of which are attached to these minutes under the respective item numbers indicated, vere a roved unanimously: Item No. T rter to The First National City Bank of New York, bel/ York, New York, approving the establishment of f!anches in Belo Horizonte and Curitiba, Brazil. vor transmittal through the Federal Reserve Bank New York) tetter to State Bank of Albany, Albany, New York, aPPr°ving the establishment of a branch in the Town c)r Eat the s Greenbush, New York. (For transmittal through Federal Reserve Bank of New York) ter to Long Island Trust Company, Garden City, New York, ending the time within which it may establish a branch 14 the t" Town of North Hempstead, New York. (For transmittal -'°11:th the Federal Reserve Bank of New York) 1 2 3 6/19/58 -2Item No. Letter to the Lincoln Rochester Trust Company, Rochester, New York, approving the establishment of a branch at 65 V.tzhugh Street North. (For transmittal through the xederal Reserve Bank of New York) 4 Letter to Asbury Park and Ocean Grove Bank, Asbury Park, New Jersey, approving the establishment of a branch in °cean Township, New Jersey. (For transmittal through the Federal Reserve Bank of New York) 5 , Letter to the Jenkintown Bank and Trust Company, Jenkintown, extending the time within which it may establish branch in Abington Township, Pennsylvania. (For transmittal through the Federal Reserve Bank of Philadelphia) 1aemlaylvania, 6 Letter to Schoolfield Bank & Trust Company, Danville, Virginia, sly)13roving its application for membership in the Federal Reserve stem. (For transmittal through the Federal Reserve Bank of 7 Letter to the City Bank and Trust Company, Jackson, Michigan, 8 Richmond) 13foving the establishment of a branch at 4515 Francis Street f'As-Lead of 46o8 Francis Street in Vandercook Lake, Michigan. kFor transmittal through the Federal Reserve Bank of Chicago) u tter to the Nevada BRnk of Commerce, Reno, Nevada, approving (, establishment of a branch at 1379 South Virginia Street. ,l'or transmittal through the Federal Reserve Bank of San 9 rr ancisco) u tter e :r to the Presidents of ell Feder Reserve Banks concerning b ancellation of Federal Reserve Bank stock when a national ,!Ilk converts into, or merges or consolidates with, a nonmember 1-".ate -ank under the charter of the latter. Letter to the Comptroller of the Currency recommending approval Of Texan aPPlication to organize a national bank at San Antonio, as ' (With a copy to the Federal Reserve Bank of Dallas) Letter to the Federal Reserve Bank of Atlanta authorizing the eparation of detailed plans and specificati ons for an addition b 'he he office building and alterations to the existing Z 10 11 12 6/19/58 Item No. Letter to the Federal Reserve Bank of Chicago interposing no objection to its furnishing the manufacturer of a currency changer machine information concerning the location of perforations placed in Treasury currency during the cantellation operation. 13 Before action was taken on the membership application of the Schoolfield Bank & Trust Company (Item No. 7), Mr. Masters summarized, at Governor Mills' request, the reasons why the Division of Examinations JIM recommended favorably despite the fact that the bank's application for deposit insurance was turned down by the Federal Deposit Insurance CorPoration in August 1957. In his comments Mr. Masters stressed the improvement in the bank's condition reflected by the membership examillation made by the Federal Reserve Bank of Richmond as of March 17, 1958, as compared with the examination made by the Federal Deposit Insurance CorPoration in May 1957. He also brought out that although the Corporation's letter of June 3, 1958, written in response to the Board's letter of M4Y 22/ 1958, continued to express certain reservations regarding the ePPlicant bank, the comments were based primarily on the May 1957 ex4111nation. Danville With respect to the admittedly overbanked situation in he said it was the view of the Division of Examinations that here/ as in this case, a bank is already in existence and is serving the ec)mrannity, there would be no reason to deny an application for System membership, particularly in view of the improvement in condition shown since the time of the examination by the Federal Deposit Insurance Corporation. 6/19/58 Governor Robertson added that at his suggestion a representative of the Division of Examinations visited the offices of the Federal Deposit Insurance Corporation on June 16, 1958, and reviewed the application with members of the Corporation's staff, at which time the view was expressed that if, on the basis of current information, the Board was satisfied as to the factors set forth in section 6 of the Federal Deposit Insurance Act, the Corporation would rely on the judgment of the Board with respect to the membership application. Messrs. Goodman, Daniels, and Hooff then withdrew from the meeting. Use of Federal Reserve Bank funds for entertainment purposes. In accordance with the understanding at the joint meeting of the Board and the Reserve Bank Presidents held on June 17, 1958, there had been received 114der that date from the chairman of the Presidents' Conference a statement Setting forth in detail the Presidents' views with respect to the use of Pederal Reserve BAT* funds for nonofficial entertainment of persons not emPloYed by the Federal Reserve Banks. Copies thereof had been distributed to the members of the Board. At the suggestion of Chairman Martin, it was agreed to defer consideration of this matter until additional members of the Board were s•vailable to participate in the discussion. In addition, it was reported that the President of one Federal Reserve Bank was going to write a letter to the Board on the subject. Reference also was made in this connection to an memoire dated June 13, 1958, on the subject of expenses of wives 6/19/58 -5- accomPanying Reserve Bank officers on foreign travel which had been handed to Chairman Martin by President Hayes of the Federal Reserve Bank of New York. Copies of this document had been distributed to the members of the Board. Mr. Leonard then withdrew from the meeting. Charlotte Branch matter (Item NO. 14). Pursuant to the under- standing at the meeting on June 11, 1958, there had been distributed to the members of the Board copies of a draft of letter which might be sent to the Federal Reserve Bank of Richmond with respect to the letter received by the Board from officials of the First Baptist Church, Charlotte, North Carolina, regarding an interview with the Vice President of the Charlotte 13ralloh concerning the employment practices of the branch. Following a discussion, the letter to the Richmond Bank, of which 4 Copy is attached as Item No. 14, was approved unanimously. Consideration also was given to the nature of the reply which nlight be made to the officials of the First Baptist Church, and Mt. Thurston Inaa.15I251 to prepare a letter to that group on the basis of suggestions Its to content which were made at this meeting. Mr. Masters then withdrew from the meeting and Messrs. Connell and Controller and Assistant Controller, respectively, entered the room. General salary increase for Board employees (Item No. 15). In a.ilticipation of the enactment of the Federal Employees Salary Increase "1958, now before the President for signature, there had been distributed to the members of the Board copies of a memorandum from the Division of Act 6/19/58 -6- Personnel Administration dated June 12, 1958, making recommendations with respect to a general salary increase for Board employees and related matters. Copies of the memorandum and supplemental papers which were distributed with it are attached hereto under Item No. 15. Following comments by Governor Shepardson and Mr. Johnson concerning platters referred to in the memorandum, the recommendations contained therein " If e 2.22Eav_el unanimously subject to enactment of the Federal Employees SalarY Increase Act of 1958. The meeting then adjourned. Secretary's Notes: Governor Shepardson today approved on behalf of the Board the following items: Letter to the Federal Reserve Bank of New York (attached Item No. 16) 1113Prc)ving the appointment of Donald F. Walls and John B. Harrison as assistant ex aminers. Letter to the Federal Reserve Bank of St. Louis (attached Item No. 17) %Pr°7ing the appointment of Harry Lee Rea and Joseph Clarence Welman, Jr., assistant examiners. Memorandum dated June 18, 1958, from Mr. Masters, Director, Division of -a."461.Mi4ations recommending extension through July 3, 1958, of the arrangements PProv A 1_ by the Board on May 19, 1958, for the temporary assignment to the biVis. „lon or of Examinations of Mr. J. Donald Murray of the Federal Reserve Bank "_ladelphial with the understanding that Mr. Murray's commission as an -'51stant Federal Reserve Examiner would be extended to July 3, 1958. A,4i4einorandum dated June 19, 1958, from Mr. Kelleher, Director, Division of .u-1-n istrat1ve Services, recommending that an attached termination notice Z sh( 7 1 June 12, 1958, from Stanley F. Petrone, manager of the Board's barber 841 P, be accepted effective at the close of business June 20, 1958, and that ehoattached agreement with Henry Richelsen to take over the management of the gattbeginning June 23, 1958, be approved subject to a satisfactory investi-`4 by the Division of Personnel Administration. A806 6/19/58 -7Pursuant to recommendations contained in memoranda from appropriate individuals concerned, Governor Shepardson also approved today on behalf of the Board the following items affecting the Board's staff: increases effective June 29, 1958 Name and title 1/ Division Basic annual salary To From Research and Statistics Daniel H. Brill, Chief, Capital Markets Section Dorothy Bujno, Secretary Dorothy Drake, Editorial Clerk Hial'olyn B. Hammond, Statistical Clerk Try John Katinas, Secretary mile Dixon Rawles, Statistical Clerk Gall Roberts, Clerk-Stenographer .411,ne English Stewart, Librarian ' 4uis Weiner, Chief, National Income, Labor Force, ana Trade Section $12,420 4,11.85 $12,690 3,911.0 3,260 4,215 3,585 3,415 4,525 4,075 3,345 4,350 3,670 3,500 4,660 12,420 12,690 10,535 10,750 11.,620 Examinations t renton C. Leavitt, Supervisory Review Examiner 1 311g1as L. Orre, Assistant Federal Reserve Examiner vc. ,ed W. Troup, Supervisory Review Examiner 'argaret M. Tunstsil, Clerk-Typist 4,66o 14,795 10,320 3,415 10,535 4,485 4,620 2,975 2,745 2,960 3,670 3,670 3,619 3,050 2,830 3,045 3,755 3,805 3,806 3,500 Personnel Administration Jane Donohoe, Secretary Administrative Services Ruth M. Flowers, Charwoman rIles Jackson, Laborer Maddox, Guard R.F. Murphy, Mailing List Clerk Jean Myers, Utility Clerk Abner Thompson, Xerox Operator p Aece tance of resignation 15 Re Homer Jones, Chief, Consumer Credit and Finances Section, Division of and Statistics, effective June 30, 1958. 1/ Wq4-th the understanding that the salaries to which the general pay increase vould be applicable would be adjusted to appropriate steps in the new http://fraser.stlouisfed.org/ schedule. Federal Reserve Bank of St. Louis 1807 6/19/58 -3Pursuant to the recommendation contained in a memorandum dated June 18, 1958, from Mr. Marget, Director, Division of International Finance, Governor Shepardson approved today on behalf of the Board an overexpenditure of $25 in the 1958 budget of the Division of International Finance to cover the purchase of a floor lamp. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 1 6/19158 WASHINGTON 25, D. C. ADORERS OFFICIAL CORRESPONDENCE TO THE BOARD June 19, 1958 The First National City Bank of New York, 55 Wall Street, New York, New York. Ge ntlemen: The Board of Governors of the Federal Reserve System nthorizes The First National City Bank of New York, New York, York, pursuant to the provisions of Section 25 of the Federal se :4,!rve Act, to establish a branch in Belo Horizonte, State of 111as Geraes, Republic of the United States of Brazil, and to : ustablish a branch in Curitiba, State of Parana, Republic of the ed States of Brazil, and to operate and maintain such branches uubject to the provisions of such Section; upon condition that, 1 1411aless : the branches are actually established and opened for .8iness on or before December 1, 1959, all rights granted here6 "11 be deemed to have been abandoned and the authority here::!Y.granted shall automatically terminate on such date. This ilt i horization is made with the understanding that the approval prior t the appropriate Brazilian authorities will be obtained 0 the establishment of the branches. z Please advise the Board of Governors in writing, through the Federal nt of Reserve Bank of New York, (1) when the establishme the and Brazil, in authorities (2\ °ranches has been approved by the I when the branches are established and opened for business, turni hina to the exact locations of such branches. It i88 -40 information as of understood that no change will be made in the locations ItTch branches after establishment without the prior approval of "e Board of Governors. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. 180 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 2 6/19/58 ADORERS OFFICIAL CORRESPONDENCE TO THE BOARD June 19, 1958 Board of Directors, State Bank of Albany, Albany, New York. Gentlemen:. Pursuant to your request submitted through t he Federal Reserve Bank of New York, the Board of Governors approves the establishment of a branch on the vest side Of Columbia Turnpike (U. S. Routes 9 and 20) 130 feet south of the intersection of Routes 9 and 20 and Troy Road (unincorporated Village of East Greenbush) Town of East Greenbush, Rensselaer County, New York. T his approval is given provided the branch is established within six months from the date of this letter and that formal approval of the State authorities is effective at the time the branch is established. Very truly yours, (Signed.) S. R. Carpenter S. R. Carpenter, Secretary. 1810 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 3 6/19/58 WASHINGTON 25, D. C. ADORES!' orriciAL CORRESPO TO THE BOARD June 19, 1958 Board of Directors, Long Island Trust Company, Garden City, New York. Gentlemen: In accordance with the request submitted through the Federal Reserve Bank of New York, the Board of Governors extends to September 2, 1958, the time within which Long Island Trust Company may, under the authority granted in the Board's letter of July 1, 1957, establish a branch at the northwest corner of Jericho Turnpike and Villa Place, in the unincorporated village of Garden City Park, Town of North Hempstead, Nassau County, New York. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. OCHCC BOARD OF GOVERNORS who*** OCII , If1.1e4: OF THE FEDERAL RESERVE SYSTEM tfl t Item No. 4 6/19/58 WASHINGTON 25. O. C. ADDRESS OFFiCIAL CORRESPONDENCE TO THE BOARD June 19, 1958 Board of Directors, Lincoln Rochester Trust Company, Rochester, New York. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of New York, the Board of Governors approves the establishment of a branch at 65 Fitzhugh Street North, Rochester, New York, by Lincoln Rochester Trust Company, Rochester, New York. This approval is given provided the branch is established within one year from the date of this letter and that formal approval of the State authorities is effective at the time the branch is established. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM " Item No. WASHINGTON 25, D. C. 'a ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD June 19, 1958 Board of Directors, Asbury Park and Ocean Grove Bank, Asbury Park, New Jersey. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of New York, the Board of Governors of the Federal Reserve System approves the establishment of a branch by the Asbury Park and Ocean Grove Bank, Asbury Park, New Jersey, on Sunset Avenue, approximately 100 feet east of State Highway 35 in Ocean Township, Monmouth County, New Jersey, provided the branch is established within one year fram the date of this letter, and approval of the State authoritios is effective as of the date the branch is established. 5 6/19/58 Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 6 6/19/58 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD June 19, 1958 Board of Directors, Jenkintown Bank and Trust Company, Jenkintown, Pennsylvania. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Philadelphia, the Board of Governors extends to January 29, 1959, the time within which Jenkintown Bank and Trust Company may establish a branch at the intersection of Old York and Township Line Roads in Abington Township, Montgomery County, Pennsylvania, under the authorization contained in the Board's letter of July 29, 1957. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 7 6/19/58 WASHINGTON 25, D. C. ADDRESS OFFICIAL COFIRESPONOENCE TO THE BOARD Jim 191 1958 Board of Directors, Schoolfield Bank & Trust Comppny, Danville, Virg,inia. Gentlemen: The Board of Governors of the Federal Reserve System aPproves the application of the Schoolfield Bank er. Trust Company, panville, Virginia, for stock in the Federal Reserve Bank of Iliehmond, subject to the numbered conditions hereinafter set forth: 1. Such bank at all tiles shall conduct its business and exercise its powers with due regard to the safety of its depositors, and, except, with the permission of the Board of Governors of the Federal Reserve System, such bank shall not cause or permit any chane to be made in the leneral character of its business or in the scope of the corporate powers exercised by it at the time of admission to membership. 2. The net capital and surplus funds of such bank shall be adequate in relation to the character and condition of its assets and to its deposit liabilities and other corporate responsibilities. In connection with the foregoinu conditions of membership, Particular attention is called to the provisions of the Board's Regulation H, as amended efCecttve September 1, 1952, regarJing 11,!embershin of State bankinL institutions in the Federal Reserve 'Y8t4'-'1, with especial reference to iection 7 thereof. A copy of t'.0 regulation is enclosed. Attention is invited to the fact that if the blnk desires exercise trust powers it will be necessary'under condition of mem, ;•:5?rship numbered 1 to obtain the permission of the Board of Governors uefore exercising them. tO BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Schoolfield Bank & Trust Company -2- If at any time a change in or amendment to the bank's charter is made, the bank should advise the Federal Heserve Bank, furnishing copies of any documents involved, in order that it may be determined whether such change, affects in any way the bank's status as a member of the Federal Reserve System. Acceptance of the conditions of membership contained in this letter should be evidenced by a resolution adopted by the board of directors and spread upon its minutes, and a certified copy of such resolution should be filed with the Federal Reserve Bank. Arrangements will thereupon be made to accept payment for an approprlate amount of Federal Reserve Bank stock, to accept the deposit Of the required reserve balance, and to issue the appropriate amount of Federal Reserve Bank stock to the bank. The time within which admission to membership in the Federal _Reserve System in the manner described may be accomplished is limited to 30 days .Trom the date of this letter, unless the bank applies to the Board and obtains an extension of time. 1;lhen the Board is advised that all of the requirements have been complied with and that the appropriate amount of Federal Reserve Bank stock has been issued to the bank, the Board will forward to the bank a formal certificate °I' membership in the Federal Reserve System. The Board of Governors sincerely hopes that you will find ?3111bership in the System beneficial and your relations with the Reserve fank pleasant. The officers of the Federal Reserve Dank will be glad assist you in establishing your relationships with the Federal eserve System and at any time to discuss with representatives of your "4.ank means for making the services of the System most useful to you. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. Enclosure BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 8 6/19/58 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRE9PC1NDENCE TO THE BOARD 0,:lLmACV June 191 1958 Board of Directors, City Bank and Trust Company, Jackson, Michigan. Gentlemen: In a letter dated June 3, 1958, the Board of Governors approved an extension of time until November 29, in which the City Bank and Trust Company may estab-Lash a branch in the unincorporated village of Vandercook lake, Michigan. It is understood that the branch is to be established at 4515 Francis Street instead of 4608 Francis Street which was the specific location described in the Board's letters of August 30, 1957 and June 3, 1958. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. 1817 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 9 6/19/58 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD June 19, 1958 Board of Directors, Nevada Bank of Commerce Reno, Nevada. Gentlanan: Pursuant to your request submitted through the Federal Reserve Bank of San Francisco, the Board Of Governors of the Federal Reserve System approves the establishment of a branch at 1379 South Virginia Street, Reno, Nevada, by the Nevada Bank of Commerce, Reno, Nevada, provided the branch is established by April 1, 1959. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. BOARD OF GOVERNORS „oiatttiol,, OF THE 44'"iItem .* 3* S c WASHINGTON 25. D. C. No. 10 6/19/58 S-16060 * 40 44 *# 0 °I FEDERAL RESERVE SYSTEM 0 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD LW.V.I0V 04,t> June 19, 1958. bear sir. It has come to the Board's attention that the Federal Reserve are following different procedures in canceling Federal Reserve : Bani 80.1,48t4ck held by national banks which convert into or merge or conate with nonmember State banks under the charter of the latter. ' The second paragraph of section 9 of the Federal Reserve Act ProviA ,,'es that, in such cases, the Federal Reserve Bank stock owned by the 5 of",atinital bank "shall be canceled and paid for as provided in section Act," The latter section deals, among other things, with the " P of tiwiell Federal Reserve Bank stock in the case of voluntary liquida! ° a State member bank and provides that the shares surrendered m,a, De canceled and the member banks shall receive payment therefor ' 4nde tiohr,regulations to be prescribed by the Board. Section 7 of Regulati,42 provides that, when a member bank goes into voluntary liquidathe other duly authorized person shall, liqu*1dating agent or some three months from the date of the vote to place such bank in Pede ary liquidation," file an application for cancellation of the ral Reserve Bank stock. Ca3e _ f As is apparent, provisions for cancellation of stock in the ?tierce° voluntary liquidation do not apply precisely to conversions or qine I's° In liquidation the corporate existence may continue for some sepal, 'whereas in conversions or mergers the corporation ceases as a ate entity on a specific date. Regulation I to conver , In adapting these statutes and the Board's the Board banks, national of consolidations of is 4 -311e, mergers and Federal of cancellation for 4eser„'he opinion that the application Of t v e Bank stock should be filed within three months from the date date"e vote to convert the national bank into, or to merge or consoli.. , a nonmember State bank. However, regardless of when the appli theis filed, dividends should cease upon the effective date ol nversion, merger or consolidation. After that date, the bank is 1819 S-1660 -2- . 10r/ger a member of the Federal Reserve System and is not entitled to r4.1dends on the Reserve Bank stock even though physical cancerlation may take place for some days0 In order to assist the Federal Reserve Banks in arranging for the r rese ancellation of Federal Reserve Bank stock and the transfer of the accounts and safe-Iceeping items, the Office of the Comptroller °f le Currency has agreed to send advance information to the appropriate peatrie vel : ral Reserve Bank in all cases where a national bank proposes to conea„11_111to a State bank, or merge or consolidate with another bank. In where Federal Reserve ` Iatem t, the resulting banl: will not be a member of the taki ne national bank should be informed as to the advisability of 8tocrilg Pr°InPt application for cancellation of its Federal Reserve Bank and transfer of its account. It should also be informed that sionuellas on such stock will cease upon the effective date of the comers merger or consolidation. Very truly yours. 'DV Sil . R. Ct Secretary. To IRE PRESIDENTS OF ALL FEDERAL RESERVE BANKS. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 11 6/19/58 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOAR° June 19, 1958 Comptroller of the Currency, Tteasury Department, Washington 25, D. C. Attention Mr. G. W. Garwood, Deputy Comptroller of the Currency. Nlar Mr. Comptroller: Reference is made to a letter from your office dated ulY 30, 1957, enclosing copies of an application to organize a tional bank at San Antonio, Texas, and requesting a recammenda411 as to whether or not the application should be approved. ' Information contained in a report of investigation of aPPlication made by an examiner for the Federal Reserve Bank Dallas indicates satisfactory findings with respect to the proZ!!cl capital structure of the bank, its earnings prospects, and 77uagement. Wale it is reported that some question exists as to e need for another bank in the area at this time, the potentialfor further growth would seem to justify favorable consideraof the proposal. Accordingly, the Board of Governors recom' 4°Ild8 approval of the application. the iT The Board's Division of Examinations will be glad to diseget. ' any aspects of this case with representatives of your office it 4. you so desire. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. ) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 12 6/19/58 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD June 191 1958 Mr. Malcolm Bryan, President, Federal Reserve Bank of Atlanta, Atlanta 3, Georgia. Dear Mr. Bryan: The Board authorizes the preparation of detailed plans and 8Peoifications for the construction of an addition to the east of the Present Head Office building and for alterations of the existing building, .submitted with your letter of February 12, 1958, and modified by s m Patterson's letter of May 21. It is noted that, when bids are taken, the Bank proposes to ask f°r a number of deductive alternates. Mr. Persina, the Board's former lezsulting architect, used to maintain that it was more effective to pros,e for Hadd-on alternates" rather than "deduct alternatesl u and it is `TEested that you give consideration to this procedure. The February estimates included 0.15,750 for bandit-resisting equj1..tymont, and the summary of deductions submitted with Mr. Patterson's ,4,-!Lter includes possible savings of Sh2,000 in this field. 771aile excessive visions of this nature should be avoided, it is assumed that changes in li'f?"ls respect will not go beyond prudent limits. Tho list of deductions also includes estimated savings if waivers cay, be r„obtained from the City building department with respect to stairway 1 cglirements. One request would be for permission to retain the west stair; vhich does not. fully comply with the latest Atlanta building code. The 1, 417 request would be for approval of a total of three stairways in the Theal'ged buildinz instead of four as required under the City building code. em, requests would be based on the fact that the existing west stairway is bill? and that, with the number of employees to be housed in the enlarged -°:linE, three stairways are considered ample. The Board suggests that , an er:Vequest for waivers under the building code be very carefully consid, poj as it would be inadvisable for a Federal Reserve Bank to be in the riO4.1bi0n of seeking to save money through building construction that dc.-.:s `' Meet appropriate safety standards. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. r% BOARD OF GOVERNORS 4011t***4 k% IV Ci)k *qt, •1`;,.-N * OF THE FEDERAL RESERVE SYSTEM Y* * Item No. 13 6/19/58 WASHINGTON 25. D. C. f.4 ii ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD \7i84030 , ,„,;i " ) '41t** June 191 1958 1;lr• E. C. Harris, First Vice President, Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, Illinois. DerAr Mr. Harris: In reply to your letter of May 27, 1958, the Board of Governors interposes no objection to the Federal Reserve Bank of Chicago furnishing the A.B.T. Eanufacturing Company, Chicago, s13?nois with information pertaining to the location of perfoatlons placed in currency during the cancellation operation. f Since the desired information is a part of the confi! ential instructions isE,ued by the Treasury Department with ;',esPect to the issue, exchange, replacement and redemption of S. paper currency, your request was discussed with the Office the Treasurer of the United States. As a result of this ulscussion, it is suggested that when you furnish the information ) ,"taining to the cancellation perforations to the manufacturer ' 4;e be advised that it is considered confidential and is being 21 1rn1shed for use in developin the currency changer equipment • nth the understanding that the confidential nature of the In formation will be preserved. 1 Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, SecretaPy. 1.823 .4)04 BOARD OF GOVERNORS OF THE Item No. 14 6/19/58 FEDERAL RESERVE SYSTEM kz' WAS OFFICE OF THE CHAIRMAN June 19, 1958. Mr. Hugh Leach, President, Federal Reserve Bank of Richmond, Richmond 13, Virginia. Dear Mr. Leach: On June 6, 1958, the Board received a letter from officials of the First Baptist Church of Charlotte, North Carolina, transmitting a copy of their letter of April 280 1958, to your bank in regard to an interview with Mr. Cherry, Vice President in charge of the Charlotte Branch. The Board is deeply concerned about statements contained in the April 28 letter, and requests that you bring the matter before the Directors of the Bank at their next meeting in order to make sure that no justification Shall exist for any charge of discrimination in the employment practices of the Federal Reserve Bank of Richmond. Sincerely yours, Wm. McC. Martin, Jr. 1 Item No. 15 6/19/59 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM 91 ce Correspondence Date June 12, 1958 40 tr_ Prok.kvitzt_LQLL_manv.L ALw or tion dal P,r Subject: General Salary Increase for Board Employees. The Federal Lmployees Salary Increase Act of 1958 increases by ...,.. 10 ) „ a. enoj Hu per annum the rates of compensation of the "classified" eiti Voes of the Federal Government. The increase is effective, retroas of the first day of the first pay period which began on or (1r January 1) 1958. In line with the Board's policy of maintaining a salary of tiure for its employees at the same general level as other agencies foil le Federal Government, it is recommended that the Board approve the or tririg, to be effective retroactive to January 12, 1958 (the first day Ile Board's first pay period which began on or after January 1, 1958): Stria"4... ItLIGI ZIENDATION 1. Revise the Board's Regular Salary Schedule in accordance with the attached table (Attachment No. 1) which corresponds with increased salary rates established by the Federal Employees Salary Increase Act of 1958; and, further, adjust accordingly the basic compensation of those Board employees paid under this Schedule. 2. Retroactive Provisions: (a) Initial salary increases to be effective January 12, 1950, or, as of the date of employment by the Board, if later. All subsequent increases, if any, to correspond to the equivalent steps of the new Regular Salary Schedule. (b) Only those employees on the Board's rolls as of the date of the approval of this recommendation will be entitled to retroactive pay. Employees who left the Board prior to this approval date to accept employment in a Federal agency will not be eligible for retroactive pay from the Board. Employees who cams to the Board from a Federal agency during this retroactive period will be eligible for retroactive pay from the Board only for their period of employment with the Board. This is in accordance with the policy followed , by the Board in connection with retroactive pay in 1955. To Board of Governors -2- I 1'42' (c) Employees who retired during this retroactive period will be given retroactive pay for the period from January 12, 1958, to the date of retirement. The same policy would apply in the case of a deceased employee. (d) In connection with the Board's legal authority for making retroactive salary payments, two precedents exist, i.e., the Federal pay increase of 1951 and the Federal pay increase of 1955. On both of these occasions, this legal question was reviewed by the Board's Legal Division, and in both instances the Board followed the Federal government in extending the full retroactive pay increase to its employees. In view of these two precedents, the Legal Division does not feel that this question requires further consideration. 3. Revise the terminology used with the Board's Regular Salary Schedule. Whereas alphabetical "groups" equivalent to Civil Service "grades" have been used in the past, it is recommended that the Board adopt a terminology which will be more easily compared to the General Schedule used by Civil Service. For example, the Board's "Group K" would become "Grade FR-4" which would be the equivalent of Civil Service "Grade GS-4". "Group U" would become "Grade FR-11", the equivalent of Civil Service "Grade GS-11", etc. 4. Eliminate CPC equivalent grades from the Board's Regular Salary Schedule. Where appropriate, Board employees paid under the equivalent of the former Civil Service "CPC" Schedule previously have been transferred to either the Board's Regular Salary Schedule or to the Metropolitan D. C. Prevailing Rate Wage Schedule. However, certain employees, such as Cafeteria Helpers, Charwomen, Laborers, etc. are still paid under the equivalent of the now obsolete CPC Schedule since transferring these employees to a Prevailing Rate pay system would have penalized them. In order to eliminate the use of the cpc Schedule, it is desirable to transfer these employees to the Board's Regular Schedule. It is - herefore recommended that these employees be administratively allocated into appropriate grades and steps in the Board's Regular Salary Schedule in accordance with Attachment No. 2, and that these new salaries be used in determining the amount of retroactive pay. Where an employee has been paid at more than one CPC rate during the retroactive period, appropriate rates from the Board's Regular Salary Schedule will be ,?;ed for retroactive pay purposes. To Board of Governors -3- 5. Per Diem liaployees. Increase the salary of Elsie Mae Hart, Substitute Maid, from ;10.25 to ,11.44 per day, which is the daily rate for the minimum salary of grade FR-1, the grade in which the Maid is being placed. Increase the salary of Mary A. Weikel, Substitute Telephone Operator, from s 14.00 to 15.60 per day, which is the daily rate for the middle salary step of grade FR-4, the grade in which the Telephone Operator is classified, and the approximate step at which her present salary has been established. Both of these increases represent increases of approximately 10 per cent. 6. Pending appointments. Salary to be adjusted to the corresponding step in the new salary schedule for any employee whose appointment has been approved by the Board but who has not yet reported for duty, unless otherwise specified in the appointment action,, 7. Administration and procedures. The Office of the Controller and the Division of Personnel Administration will use Government rulings and interpretations with regard to the current Salary Increase Act as guides in deciding questions of administration and procedure. 8. Exceptions. Not included in this recommendation are Board employees paid under the Metropolitan D. C. Prevailing Rate Wage Schedule (Mechanics, Gardeners) Painters) and the Interdepartmental Lithographic Wage Board (printing) pay schedule. These employees have been receiving regular periodic increases as a result of area wage surveys. It is planned, effective at the beginning of the pay period following approval of this memorandum, to determine pay for these employees by using the hourly wage rates from which the current annual rate approved by the Board was derived. This is in order that the Board will not be paying a greater hourly wage to these employees than that recommended by their respective wage boards. Also excepted are the Substitute Nurses, whose salaries are based on the prevailing rate for Registered Nurses in the District of Columbia. On June ).1, 1956, the daily rate was increased from a5.00 to ,16.00 sin line with an increase approved for Registered Nurses NOTE: This memorandum does not include reccamendati.ons with regard to the Plaication of the general pay increase and the retroactive 1, Provision to the Board's official staff0 it is a:;sumed that t)i:, determination will be made by the board, as in t):1(: past,“ Attae hinents 2 Attachment No. I. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM PROPOSED REGULAR SALARY SCHEDULE Present Group Proposed Grade A ...... B Imiram, D FR-1 r , G Step Increase Proress Steps Minimum 1-laximurn Longevity Steps Eliminate _Oft IMPOINI. im1411116 =NM. .01011, MM.OM =MAN. 11••••• ONO MI. Flirni nate MID MO 1•04mr ••••••• MP QM .10.0m MM./. 4•1••=0 al.=MD 41010M. 95 2960 3055 3150 3245 3340 3435 3530 3625 3720 3815 _ Eli mi nate .— M11.••• el•INIM 411•00 mop Mb vmromo soma= Im.m. Mr FR-2 95 3255 3350 3445 3540 3635 3730 3825 3920 4015 4110 410.41.0 • N/Wm 41110011P am.. ..... MO *WO/ ••••••• ....0. -- 4160 4255 4350 H — I FR-3 J •••wimb K FR-4 Eliminate ....- 95 3495 3590 3685 3780 3875 3970 4065 Eliminate — .114.• 1110.11 0.MP amMio 41../. Vm•MP AN ..1.... ..wein 95 3755 3850 3945 4040 4135 4230 4325 /14, 0 4515 4610 .... M.O. ••••.• -- 5240 5390 L 0.1•••• X FR 5 150 0 4 0 4 N AIM. El fini nat.e eg.... O MOM. .1.M ORAW A. F .1 ifili n te Eliminate ...... _ 4190 4340 4490 4640 4790 4940 5090 41041f 0••••• MIMI 410.11111• INV.0 •••••• ilinIND .110,1•1• MINIM Immo, .1....0 .1.1. ...... AM., .... •IFION1 MP UM! Present _21 . 2E2_ Proposed Grade FRF-6 Step Increase Minimum 150 4490 4640 4790 4940 5090 5240 5390 5540 5690 r940 5280 5430 5580 5730 5880 6030 6180 6330 Progress Steps Maximum amgevity Steps Eliminate P(M) FR-7 150 4980 5130 GM -- Eliminate -- -- R FR-8 150 5470 5620 5770 5920 6070 6220 6370 6520 6670 6820 S FR-9 150 5985 6135 6285 6435 6585 6735 6885 7035 7185 7335 T FR-10 150 6505 6655 6805 6955 7105 7255 7405 7555 7705 7855 U FR-11 240 7030 7270 7510 7750 7990 8230 8470 8710 8950 V FR-12 240 8330 8570 8810 9050 9290 9530 9770 10010 10250 W FR-13 240 9890 10130 10370 10610 10850 11090 11330 11570 11810 X FR-14. 240 11355 11595 11835 12075 12315 12555 12795 13035 13275 Y FR-15 300 12770 13070 13370 13670 13970 14210* 14450* 14690* * Y longevity steps of ;240 as in FR-14,, Currently In Groups Comparable to CPC Grades CAP..41.a?...TA Name Title Present Group Present Salary •M.MIM=.! Attachment No. Proposed Grade Proposed Salary B(CPC-2) $1,525-x" FR-1 $1 717* !! 1,413* FR-1 1,575* 2,675 FR-1 2,960 TI 2,753 FR-1 3,4355 It 3,050 FR-1 3,435 3,o5o FR-1 3,435 2,675 FR-1 2,960 3,255 FR-1 3,625 2,915 FR-1 3,245 3,425 FR-1 3,815 Cafeteria Helper 3,340 FR-1 3,720 Psomos, George Cafeteria Laborer 3,425 FR-1 3,815 Rose, Abraham Cafeteria Laborer. 2,915 FR-1 3,245 Bran, Eva M. Baker 3,465 FR-2 3,825 Jones, Pearl Cook 3,465 FR-2 3,825 Norman, Florence Relief Cook fl 3,210 FR-2 3,540 Tull, Winnie L. Jr. Supervisor If 3,465 FR-2 3,825 Crawford, Mary Head Cook 3,710 FR-4 4,135- Ellis, Ruth P. Cafeteria Re/per Feild, Thethonia D. Cafeteria Helper Manley, Nina Cafeteria Helper Price, Gertrude H. Cafeteria Helper Venable, Geraldine M. Cafeteria Helper Wilson, Lela M. Cafeteria Helper Yates, Eleanor W. Cafeteria Helper Adwell, Lydia Salad Maker Edmonds, Henry Cafeteria Laborer Evans, Blanche B. Cafeteria Helper Herrmann, Violet- * Part time II E(CPC-3) TI EOPG-3) H(CPC-4) J(cP0-5) Present Name Presc.%-t Proposed Proposed Salary Group Title Brown, Ruth A. Carvoraan B(CP0-2) ,2,900 FA-1:.$3,2245 Faina, Valeria Charwoman Btt 3,050 FR-1 -;!13.5 Ferguson, Angelina Z. Charwoman 3 ..)n,'•,, to FR-1 3,435 Flowers, Ruth M. Charwoman 2,975 FR-1 3,340 Fowler, :ary J. Charwoman B 3,200 FR-1 3,530 C-allagher, Catherine Charwoman B 3,050 FR-1 3,435 3reen, Lettie Charwoman B 3,050 FR-1 3,435 Hartzell, Edith C. Charwoman B 11 2,975 FE-1 '1 n _,,,M-- King, Blanche C. Charwoman B tl 2,600 FR-1 2,960 Lorenzo, Frances Charwoman B fi 2,520 FR-1 2,960 :osher, Dorothy Charwoman 3 ft 3,125 FR-I 3,530 Richardson, Constance H. Chareonan B tt 3,125 -"'D r "...,.1 3,530 Jackson, James Laborer E(CPC-3) 2,745 FR-1 3,055 Jones, Everett Laborer 1,, II 3,425 FR-1 3,315 Love, James Laborer 7 - 11 3,255 FR-1 3,625 Michel, R. M. Laborer .-7 - If 2,830 FR-1 3,150 Samie Laborer ..J 7,, IT 3,425 FR-1 3,815 Sinmcns, john C. Laborer T - II 2,745 FR-1 3,055 Reed _ 1 !, Il ft .44-5'OR 4r014.3A- 0.7cu71:_inuray Name Title Present Lx OLD Present Pror,:sed Grfe Propose Salary Smith, William R. Laborer Ward, Charlie H. Laborer Fassino, Andrew Assistant Foreman L(CPC-6 Crowell, Charles E. Chaffeur H(CPC-4) 3,535 FR-2 4,01 RoJzee, Reuben R. Chauffeur Hit 3,L65 FR-2 3,82, Stull, Howard W. Chauffeur 3,720 FR-2 4,110 .Chauffeur 3,125 FR-2 1, E„;( 3) 1, 3.625 230 3,150 4-; 14,04o CHAUiFEURS White, Lloyd F. Windsor, Rebia Chauffeur Htt 3,210 FR-2 Maid E( Pc-3) 3,425 Fr1-1 1:Y7 .4 . 3" " 1 tr4.T 1,41144 ra. a aa Jarvis, Ruth BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM REGULAR SALARY SCHEDULE Basic Annual Pay Rates by Grades — January 12, 1958 Grade (Former group designations and rates in effect March 13, 1955,to January 12, 1958, are shown on the second line in each grade.)1 Progress Steps Step Longevity Steps Maximum Increase Minimum FR-1 (D) 95 2960 3055 3150 3245 3340 3435 3530 3815 2690 2775 2880 2945 3030 3115 3200 3625 3285 3720 85 3370 3455 FR-2 95 3255 3350 3445 3540 3635 3730 3825 3920 4015 4110 85 2980 3045 3130 32 5 3300 3555 3840 3 725 95 3495 3590 3685 3780 3875 3970 4065 4160 4255 4350 85 3175 3280 3345 3430 3515 3800 3685 3770 3855 3940 FR-4 (K) 95 3755 3850 3945 4040 4135 4230 4325 4420 4515 4610 85 3415 3500 3585 3670 3755 3840 3925 4010 4095 4180 FR-5 (M) 150 4040 4190 4340 4490 4640 4790 4940 5090 5240 5390 135 3870 3805 3940 4075 4210 4345 4480 4615 4750 4885 FR-3 (I) FR-6 _ (P) 150 4490 4640 4790 4940 5090 5240 5390 5540 5690 135 4080 4215 4350 4485 4820 4755 4890 5025 5160 5840 5295 FR-7 (Q) 150 4980 5130 5280 5,430 5580 5730 5880 6030 6180 6330 135 4525 4660 4795 4930 5085 5200 5335 5470 5805 5740' FR-8 150 5470 5620 5770 5920 6070 6220 6370 6520 6670 6820 135 4970 5105 5240 5375 5510 5645 5780 5915 6050 8185 150 5985 6135 6285 6435 6585 6735 6885 7035 7185 7335 135 5440 5575 5710 5845 5980 6115 6250 6385 6520 6655 FR-10 (T) 150 6505 6655 6805 6955 7105 7255 7405 7555 7705 7855 135 5915 6050 6185 6320 6455 6590 8725 6860 8995 7130 FR-11 (U) 240 7030 7270 7510 7750 7990 8230 8470 8710 8950 215 8390 8605 6820 7035 7250 7465 7680 7895 8110 FR-12 _ (V) 240 8330 8570 8810 9050 9290 9530 9770 10010 10250 215 7570 7785 8000 8215 8430 8645 8860 FR-13 (W) 240 9890 10130 10370 10610 10850 11090 11330 11570 11810 215 8990 9205 9420 9635 9850 10065 10280 10495 FR-14 _ (X) 240 11355 11595 11835 12075 12315 12555 12795 13035 13275 215 10320 10535 10750 10985 111-80 11395 11810 11825 128.40 FR-15 _ (V) 300 12770 13070 13370 13670 13970 14210 14450 14690 270 11810 11880 12150 12420 12690 12905 FR-9 _ (S) 9075 13120 9290 10710 13335 Gros A, B, E, H. J, L, N, 0, P(M), and Q(M), which were shown on Regular Salary Schedule dated March 13, 2 1955, have been eliminated and are not listed as there are no equivalent salary rates on the now salary schedule. FR-15 longevity steps equivalent to step increase for FR-14. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 16 6/19/58 WASHINGTON 25, ID, C. ADDRESS OFFICIAL CORRESPONDENCE TO TI-4E EICIARD June 19, 1958 CONFIDENTIAL (FR) Mr. R. B. Wiltse, Vice President, Federal Reserve Bank of New York, New York 45, New York. Dear Mr. Wiltse: In accordance with the request contained in your letter of June 130 19580 the Board approves the appointment of Donald F. Walls and John B. Harrison as assistant examiners for the Federal Reserve Lank of New York. It is noted that Mr. Harrison is indebted to The Chase Manhattan Bank, New York, New York, a State member bank, in the amount of 3.30. Accordingly, the Board's approval is given with the understanding that Mr. Harrison will not participate in any examination of The Chase Manhattan Bank until his indebtedness has been liquidated. Please advise as to the dates on which the appointments are made effective. Very truly yours, (signed) S. R. Carpenter S. R. Carpenter, Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 17 6/19/58 WASHINGTON 25, D. C. ADORERS OFFICIAL CORRESPONDENCE TO THE BOARD June 19, 1958 CONFIDENTIAL (FR) Mr. Geo. E. Kroner, Vice President, Federal Reserve Dank of St. Louis, St. Louis 2, Missouri. Dear Mr. Kroner: In accordance with the request contained in your letter of June 12, 1958, the Board approves the appointment of Harry Lee Rea and Joseph Clarence Welman, Jr., as assistant examiners for the Federal Reserve Bank of St. Louis. It is understood that Mr. Welman owns 41-2/3 shares of common stock of Bank of Kennett, Kennett, Missouri, a nonmember insured bank, of which his father is prosidont. Accordingly, the Board's approval of Mr. Welman's appointment is given with the understanding that he will not participate in any exarination of Bank of Kennett while a stockholder in that bank or 30 long as his father is an officer of the institution. Please advise the Board if the appointments are not made effective July 1, 1958, as planned. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary.
@FedFRASER