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Minutes of actions taken by the Board of Governors of the Federal Reserve System on Wednesday, June 24, 1953. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Martin, Chairman Szymczak Vardaman Mills Robertson Mr. Mr. Mr. Mr. Mr. Mr. Carpenter, Secretary Kenyon, Assistant Secretary Thurston, Assistant to the Board Riefler, Assistant to the Chairman Thomas, Economic Adviser to the Board Vest, General Counsel Pursuant to the understanding at the meeting yesterday, Mr. Thurston presented a draft of press statement regarding the reduction in reserve requirements against demand deposits of member banks which was approved by the Board yesterday. Following a discussion, during which several suggestions for changes were made, unanimous approval was given to a statement reading as follows, with the understanding that it would be made available to the press late this afternoon for release in morning newspapers tomorrow: "The Board of Governors has reduced reserve requirements on net demand deposits of all member banks, as follows: Effective July 1 - from 14% to 13% at country banks. Effective July 9 - from 20% to 19% at reserve city banks, and from 24% to 22% at central reserve city banks. "The present and the new requirements on demand deposits are as follows: -2- 6/24/53 Central Reserve reserve Country city city banks banks banks (In millions of do="7Present requirements: 114 20 24 -Percentage ),362 6,886 17,229 51981 Amount 1/ New requirements: 13 22 19 -Percentage 4,050 6,541 5,482 Amount 1./ 16,073 "This step was taken in pursuance of Federal Reserve policy, designed to make available the reserve funds necessary to meet the essential needs of the economy and to help maintain stability of the dollar. The reduction, releasing an estimated $1,15610000000 of reserves, was made in anticipation of the exceptionally heavy demands on bank reserves which will develop in the near future when seasonal requirements of the economy will expand and Treasury financing in large volume is inescapable. The action is intended to provide assurance that these needs will be met without undue strain on the economy and is in conformity with System policy of contributing to the objective of sustaining economic equilibrium at high levels of production and employment. 1./ Estimates are based on net demand deposits as of the last half of May, and do not include requirements against time deposits." "All member banks Chairman Martin stated that he had not been able to reach Governor Evans by telephone to advise him of the Boardts action regarding reserve requirements, but that he would do so as soon as possible. He also said that he would call the Presidents of all Federal Reserve Banks this afternoon to inform them of the action in advance of the telegram Which would be sent to them later in the afternoon, and that he had informed the Treasury and Dr. Gabriel Hauge, of the Mite House staff, of the action taken by the Board. I 6/24/53 The meeting then adjourned. During the day the following ad- ditional actions were taken by the Board with all of the members except Governor Evans present: Minutes of actions taken by the Board of Governors of the Federal Reserve System on June 23, 1953, were approved unanimously. Memorandum dated June 24, 1953, from Mr. Bethea, Director, Division of Administrative Services, recommending that the resignation of Robert H. Jones, Mail Clerk in that Division, be accepted effective June 26, 1953. Approved unanimously. Letter to The Honorable, The Comptroller of the Currency, Treasury Department, Washington, D. C., reading as follows: "It is respectfully requested that you place an order with the Bureau of Engraving and Printing for printing 665,376,000 Federal Reserve notes (single units) of the 1950 Series during the fiscal year ending June 30, 1954. In addition, the Board wishes to allocate at this time, by Banks and denominations, the remaining 166,080,000 notes of the supplemental printing order placed in accordance with its letter of August 15, 1952. It is requested that the total of 831,456,000 notes be allocated in the amounts and denominations shown below for the various Federal Reserve Banks. "Denominations Boston $5 10 20 50 100 Number of notes 20,880,000 28,800,000 7,200,000 288,000 288,000 Amount $104,)400,000 288,000,000 144,000,000 14,400,000 28,800,000 6/24/53 New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis -4"Denominations it lo 20 50 loo Number of notes 46108o,000 84,9601000 25,2001000 214481000 1,440l000 Amount 3230,14o0l000 84936001000 504l000l000 1221400l000 14h,000,000 5 10 20 50 100 5 lo 20 So loo 5 10 20 50 100 5 lo 20 100 5 lo 20 So loo 5 lo 20 50 100 25,200,000 27,360,000 10,800,000 432,000 432l000 25,920l000 28,800,000 18,720l000 21160,000 432,000 27,360l000 212600,000 18,000,000 1,152,000 1,008,000 25,920,000 25,920l000 9,360,000 144l000 48,2402000 641800l000 25,200,000 11152l000 11728l000 21,600l000 13,6802000 7,920,000 144,000 288,000 126,000,000 273,600,000 216,000,000 21,600,000 431 200l000 129,600l000 288,000,000 374)400,000 108,0001000 43,2001000 136,800,000 2161000,000 360,000,000 57,600,000 100,800,000 129,600l000 2591200l000 187,200,000 14,400l000 241,200,000 648,000l000 504,000,000 57,600,000 1721800l000 108,0003000 136,800l000 158,400,000 7,200,000 28,800,000 6/24/53 "Denominations Minneapolis Kansas City Number of notes Amount $ 36,000,000 $5 10 $ 7,200,000 6,1j80,000 20 50 3,600,000 64,800,000 72,000,000 loo 144l000 ihh,000 71200,000 14,400,000 5 14,400,000 72,000,000 1081000,000 10,800,000 10 144,000,000 20 7,200,000 7,200,000 1)01,000 50 10014,400,000 144l000 Dallas 5 10 11,520,000 6148ol000 57:600)000 641800l000 20 100 3,600,000 288,000 288,000 72,000,000 141400,000 28,800,000 5 10 30,960,000 30,960,000 154,800,000 20 50 100 22,320,000 1,008,000 720,000 5 lo 305,280,000 350,640l000 20 50 100 159,120,000 9,360,000 5o San Francisco Totals 71056,000 Approved unanimously. 309,600,000 U6,4.00,000 50,400,000 72,000,000 1,526,400,000 3,506,400x° 3,1821400)00o 468,000,0w 705,600,000"
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