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Minutes for To: Members of the Board Pivm: Office of the Secretary June 26 1961 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 1?elow. 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. Chin. Martin Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. King Minutes of the Board of Governors of the Federal Reserve System °I1 Monday, June 26, 1961. PRESENT: Mr. Mt. Mr. Mt. Mr. The Board met in the Board Room at 10:00 a.m. Martin, Chairman Balderston, Vice Chairman Mills Robertson Shepardson Mr. Sherman, Secretary Mr. Kenyon, Assistant Secretary Miss Carmichael, Assistant Secretary Mr. Thomas, Adviser to the Board Mr. Young, Adviser to the Board and Director, Division of International Finance Mr. Noyes, Director, Division of Research and Statistics Mr. Farrell, Director, Division of Bank Operations Mr. Connell, Controller Mr. Chase, Assistant General Counsel Mr. Hooff, Assistant General Counsel Mr. Koch, Adviser, Division of Research and Statistics Mr. Furth, Adviser, Division of International Finance Mr. Sammons, Adviser, Division of International Finance Mr. Benner, Assistant Director, Division of Examinations Mr. Leavitt, Assistant Director, Division of Examinations Discount rates. The establishment without change by the Federal Rsere Banks of New York, Philadelphia, Cleveland, Richmond, Chicago, on June 22, 1961, of the St. L°W-s, Minneapolis, Kansas City, and Dallas Itte8 ed on discounts and advances in their existing schedules was approv 141411111ously, with the understanding that appropriate advice would be ellt to those Banks. f 6/26/61 -2Items circulated or distributed to the Board. The following items, which had been circulated or distributed to the Board and copies (4'1.thich are attached to these minutes under the respective item numbers indicated, were approved unanimously: Item No. Letter to New Jersey Bank and Trust Company, Clifton, Ilew Jersey, granting an extension of time to comply th membership condition numbered 3. 1 Letter to Bank of Brodhead, Brodhead, Wisconsin, 2 Proving an investment in bank premises. Letter to the Federal Reserve Bank of St. Louis inter1)°sing no objection to a change in the location of a , r°Posed branch of Citizens Fidelity Bank and Trust ; 1?1_111N1113r, Louisville, Kentucky, from within the city ts of Louisville to Jefferson County. 3 etter to the Comptroller of the Currency recoms:Ilding approval of an application of The Killbuck a-vings Bank Company, Killbuck, Ohio, to convert into national banking association. 14. Taelegram to the Federal Reserve Bank of New York 1°ving the opening and maintenance of an account : : n - -ts books in the name of Bank Markazi Iran (the -entral Bank of Iran). 5 Mr. Benner then withdrew from the meeting. Assessment for Board expenses during second half of 1961. There b een distributed under date of June 21, 1961, a memorandum from kr. Bass, Assistant Controller, recommending that an assessment of 77 of the total paid-in capital and surplus of the Federal Reserve tank 8 as of June 30, 1961, be levied upon the Banks to meet expenses of 6/26/61 _3. the Board of Governors for the second half of 1961. Such a rate would Produce an estimated $3,444,405. It was pointed out in the memorandum that it appeared likely that legislation would be enacted during the current session of Congress to Place on a permanent basis a 10 per cent increase in benefits for 1Dre-October 1956 Civil Service retirees and their survivors, as originally Plgovided for in Public Law 85-465. On the assumption that if such legislation were enacted the Board would wish to fund on a permanent 1)4181-S similar benefits for certain of its retirees and their survivors, cll-rrently financed on a yearly cost basis, funds to make a special con t tribution of approximately $90,200 to the Federal Reserve Retiremen Stem had been included in the estimated expenses for the second half or 1961. Following comments by Governor Shepardson, during which he noted that the services of Bolling R. Powell, Jr., Special Counsel to the 4 in the matter of The Continental Bank and Trust Company, Salt Lake ' 33°41 eitY, Utah, would involve payments substantially in excess of the $5,000 1311°vided in the 1961 budget and that provision for payments totaling 48 Illuch as $36,000, the maximum payable annually under Mr. Powell's 11€reernent with the Board, had been made in computing the proposed assessthe recommendation of the Office of the Controller that an assessment t .00277 of the total paid-in capital and surplus of the Federal Reserve as of June 30, 1961, be levied upon the Banks was approved unanilzol.isiy. I. 6/26/61 -4Mr. Connell then withdrew from the meeting. Report on competitive factors (Harrisburg and York, Pennsylvania). A draft of report to the Comptroller of the Currency on the competitive factors involved in the proposed consolidation of Central Trust Capital 33ank) Harrisburg, Pennsylvania, with and into National Bank of York County, York, Pennsylvania, had been distributed under date of June 21, 1961. At the instance of Governor Shepardson, Mr. Leavitt discussed the Points of difference and of similarity between this proposed consolidation and the application of Dauphin Deposit Trust Company, Harrisburg, Pexillsylvania, to merge with Camp Curtin Trust Company, also of Harrisburg, ihieh the Board denied on February 3, 1961, and on which it heard an oral Dresentation on April 13, 1961. The report, the conclusion of which read as follows, was then unanimously: The proposed consolidation of Central Trust Capital Bank, Harrisburg, with and into National Bank of York County, York, under the title National Bank & Trust Company of Central Pennsylvania, York, would eliminate little, if any, competition between the two consolidating institutions, as virtually none now exists. The proposed consolidation would create the largest banking institution in the relative area and would reduce the number of unit banks operating therein by one, although the number of banking offices would remain unchanged. Consideration should be given to the facts that subsequent to the proposed consolidation the resultant bank (1) would be operating offices in two separate and distinct areas, some 25 miles apart, and (2) would not have Obtained a size disproportionate to its prime competitors. Therefore, it is felt that the proposed consolidation would not result in a bank which would stifle competition or assume too dominant a position in the separate or over-all areas in which the resulting bank would be operating. f 6/26/61 -5Messrs. Hooff and Leavitt then withdrew from the meeting and Solomon, Director, Division of Examinations, entered the room. Federal Reserve holdings of foreign currencies. There had been distributed to the members of the Board copies of a memorandum from Mr. Y°44g. dated June 16, 1961, relating to possible operations under which the Pederal Reserve would hold accounts in certain foreign currencies, as part 'the cooperative defense of a system of international payments based °I °4 convertible currencies. A supplemental memorandum from Mr. Furth, also dated June 16, likewise had been distributed. It was pointed out in Mr. Young's memorandum that international e°°Peration between central banks to deal with destabilizing international fl°1gs of funds hall become not only a subject of active discussion in l'ecetat months but also a reality. In March 1961, a number of continental European central banks €4//e large-scale assistance to the Bank of England to withstand the °Iltflow of funds from the United Kingdom following the German and Netherlands currency revaluations. Similarly, the Stabilization Fund r the United States Treasury acquired German marks, British pounds, 44d also Swiss francs in March, April, and May 1961, in an effort to hely, k- counteract undesirable effects of fund flows resulting from these l'e\raluations. Following the April 18-19, 1961, meeting of the Economic Policy e°4ar1ittee of the Organization for European Economic Cooperation, in which if,-1 2( 0 6/26/61 -6- the United States participated as a full member of the proposed Organization for Economic Cooperation and Development, a confidential report to the governing Council of the former Organization stated that the Economic Policy Committee had been encouraged to note the effectiveness in recent weeks of cooperation between central banks, both directly and 14 restoring confidence. On May 8, 1961, a group of central bank technicians, activated Ett the initiative of the Chairman of the Board of Governors of the l'ecleral Reserve System and reporting to the directors of the Bank for International Settlements at their meeting on that date, strongly erldorsed a network of cooperative arrangements between central banks as 4 first line of defense of currency convertibility, with the International lic)rietarY Fund serving as a second line of defense. It was against the background of these developments that Mr. Youria, s memorandum discussed the possibility of the Federal Reserve holding accounts in foreign currencies with major foreign central banks 4t1 cooperating with such banks in foreign exchange operations. In introductory comments, Chairman Martin emphasized that t°°1aY's discussion was intended to be of a preliminary and informational tlatIllie. Et.8 The Chairman then turned to Mr. Young, who presented a statement, follows, supplementing his June 16 memorandum: The subject of Federal Reserve holdings of foreign currencies and of Federal Reserve cooperation with other central banks in foreign exchange operations is a basic one and unavoidably controversial. The memoranda we have submitted on the subject might have taken a different turn and 6/26/61 -7- have been, say, more of a statement of today's balance of Payments problem and alternatives for meeting likely developments ahead. After several starts at alternative approaches, we chose a positive one that affirmed a Federal Reserve responsibility for furthering international currency convertibility on the grounds that it would raise, either directly or by implication, all of the difficult issues, and would be a better method of presenting them sharply for your consideration. Over the postwar period, the key nations of the free world have consciously and cooperatively struggled to re-establish a viable convertible currency system. They have done this because such a system offers more advantages than any other in fostering world trade and investment. Convertibility contributes to expanding trade and investment by facilitating the allocation of resources interregionally in accordance with a calculus based on market processes that is as free of human and institutional bias as it is possible to make it. An interregional allocation of resources rationally effected can further the coordinated progress of both industrialized and materials supplying areas. Attainment of convertibility has brought to light major Problems that may not have been given sufficient attention in earlier planning for it. These include: (a) The problem that, once convertibility was attained, the alignment of currency values would have to undergo severe test, With some realignment of values a potentiality, though not a certainty; (b) The problem that convertibility would make interest rate levels and structures, and therefore monetary and fiscal Policies, more interdependent; (c) The problem that the placement of funds short-term would become highly responsive to international interest differentials, while equity and other investment funds would become more responsive to comparative opportunities for capital gains as between international capital markets; (d) The problem that economic cycles as between North America and Europe might continue out of phase, thus complicating Other problems; and 6/26/61 -8- (e) The problem that a very heavy burden would have to be carried by the reserve currencies--the dollar and the pound-in consequence of the free movement of sensitive funds between major money markets. It is with the solution of these problems that the monetary authorities here and elsewhere are now obliged to grapple. From the standpoint of the United States, they are problems both of our narrow national interest and of our larger international interest. We have already experienced one run on the dollar. While confidence in the dollar seems largely restored, will confidence continue to be held if the pound sterling is not to successfully defended in the months ahead? Assumptions as seem that payments prospective tendencies in our balance of entirely realistic bring out that recurrence of dollar strain from time to time in the future is at least a possibility, if not a likelihood or probability. Granting that the United States has an unavoidable interest in shoring up recently attained convertibility, does the Challenge of these interrelated problems confront mainly the Treasury, mainly the Federal Reserve System, or mainly the the International Monetary Fund, in which the United States has e challeng the that is largest participation? The obvious answer responsi share three all confronts all three agencies, because bility, though in differing degree, for the external value of the dollar. Moreover, careful screening of possible approaches to prevailing convertibility problems makes evident that their simultaneous solution, to be practicable and effective, needs to involve all three agencies. If defense of the dollar externally calls for Federal Reserve Participation, how is the Federal Reserve role to be performed and is there adequate statutory authority for it? These questions C8.11 be simply answered. Federal Reserve participation would be effected through holding working balances in the currencies of foreign central 1?anks and by engaging in spot and forward exchange operations to increase or decrease the amount of such balances whenever foreign exchange transactions were deemed to be helpful for reasons of . seasonal, cyclical, or unusual flows of payments Enough authority for these operations would appear to be provided by section 14 of the Federal Reserve Act. However, a Board policy statement on interpretation regarding this application 6/26/61 -9- of section 14 to accounts maintained with foreign central banks carries forward from 1933. The viewpoint towards the use of such accounts expressed in this statement would be somewhat limiting as regards the purposes for which they might be used in the present-day context, so that the Board may wish to reconsider this statement. If the Board soon authorizes the opening of foreign exchange accounts, with other central banks, the question would at once arise: In what currencies should they be Opened? A logical answer would be: In currencies of major Industrial countries deemed to be convertible under the IMF definition of convertibility, namely, convertibility into dollars. The currencies initially involved might well include sterling, the Belgian franc, the French franc, the German mark, the Italian lira, and the Swiss franc. When Japan accepts convertibility in IMF terms, a case might well be made for holding yen. The question of a Canadian dollar account would have to await present devaluation developments and then be determined on the basis of direct negotiations with the Bank Of Canada and the Canadian Government. Since the United States does not give gold guarantees to dollar holdings of foreign central banks, it is not in a Position to request such guarantees from foreign central banks. This fact exposes any Federal Reserve operations in foreign currencies to a risk of devaluation losses. This risk might be limited, though in reality only to a degree, by negotiation of an understanding of notification of devaluation intent with cooperating central banks. If the risk is reckoned to be a calculable and legitimate one, the System might decide that lt is in the interest of the United States as well as the free world to assume it. Endeavors to neutralize temporarily disequilibrating Payments flows between countries by changes in central bank foreign currency holdings would have the purpose of providing a time bridge until other necessary, but slower-acting policies could come into operation and gain effectiveness. If countries collaborating in foreign exchange management failed to follow through with necessary policies, the mechanism of convertibility supported by central bank cooperation would break down. In considering this matter, therefore, one is obliged to proceed on #1 -4, 6/26/61 -10- the assumption that the major countries adhering to convertibility will cooperate in pursuing sound financial policies internally. We would think such a premise is a reasonable one, for the countries concerned are all parties to the IMF agreement and have a solid interest in preserving a viable convertibility system. The proposed Federal Reserve participation in coping with abnormal foreign exchange swings would, together with participation by other central banks, provide a first line of defense against exceptional fluctuations in the flow of payments. Such participation could be more prompt, flexible, and selective than IMF drawings, with publicity on the actions taken under control of the central banks concerned. IMF drawings, which central bank actions would precede and supplement in time, would serve as the second line of defense and would come into operation in part to fund into longer-term debt the short-term central bank credits that could not be readily retired at maturity. The proposed mechanism of central bank foreign exchange arrangements would include continuous interchange of information and consultation through the facilities of the soon-to-be-inaugurated Organization for Economic Cooperation and Development and the long-established Bank for International Settlements. Should the System decide to participate in cooperative central bank foreign exchange arrangements, one of the operating problems that would have to be faced would be when and under what conditions the System's foreign currency holdings would be increased or decreased. One suggestion is that the central banks of convertible currency countries initially agree to hold each other's currency 11P to a specified amount. This would be tantamount to a fixed line of credit arrangement. A preferable method of operation would be one of individual credits negotiated under some general and flexible understanding among the central banks of key industrial countries. If a proposed area of operations is considered favorably by the Board, the legislative history of this subject is such as to call for appropriate clearance with the House and Senate Banking and Currency Committees. Also, the Treasury would take a keen interest in any steps in the foreign exchange area that the System might consider taking. We understand from informal discussions With Treasury officials that the Treasury would welcome Federal Reserve activity in this field. )4 if 6/26/61 -11- Section 14 (paras. 6 and 8) of the Federal Reserve Act gives the Board power to direct and regulate Reserve Bank acquisitions and holdings of foreign currencies, and section 12A (para. 2) specifies that the Federal Open Market Committee has power to decide the use of such holdings in the purchase of bills of exchange. System operations in the foreign exchange field would have many unique and specialized features and further Would need to be conducted in strictest confidence. If undertaken, one way to effectuate them would be through a delegation Of powers and responsibilities to a special subcommittee of the Open Market Committee, with, of course, full reporting back to the Committee. A special organizational problem would be the agency arrangement for the conduct of foreign exchange transactions and the relation of such transactions to open market Operations in Government securities. My June 16 memorandum merely offers one possible approach to this rather complex internal problem. Governor Mills presented the following statement, which he 111°Idcated had been prepared on the assumption that the idea set forth by ** Young had moved rather far toward the stage of adoption and that the 131'oblems referred to in his (Governor Mills') statement were among those that would have to be scrutinized and resolved before any decision was l E Lched: ' For the same reasons that argued for open market operations outside of the Treasury bill sector of the U. S. Government securities market, engagements in the foreign exchanges by the Federal Reserve Banks should be attempted. Entry into the foreign exchange field assumes that the Federal Reserve Act can be interpreted broadly enough to permit the extension of operations clearly intended to include purely commercial transactions to encompass stabilization operations in the foreign exchanges. The capital of the Federal Reserve Banks is of course exposed to both political and credit risks through the kind of Operations that have been proposed, which fact demands not only disclosure and tacit approval within the Congress but also concurrence by the directorates of the various participating Federal Reserve Banks. Because of the ill-advised policy of 6/26/61 -12- Paying out all Federal Reserve Bank earnings to the United States Treasury and because losses incurred in the proposed foreign exchange operations must be treated as adjustments to their surplus accounts and not as deductions from their Operating profits, it is conceivable that the restitution of the amount of any future losses to surplus accounts would require a restatement and explanation of policy to the Congress regarding the need of maintaining adequate Federal Reserve Bank capital structures. Inasmuch as only moderate-size foreign exchange operations are contemplated, the financial risks involved are correspondingly restricted, which, however, does raise the question that if the Federal Reserve Banks, once having reached the set dollar limitation on their operations, suddenly withdraw from the field international confidence in the stability of the foreign exchanges will have been shaken to a degree greater than the amount of any previously gained psychological and financial advantage. The fundamental question also exists Whether the proposed operations in the foreign exchanges will interfere with, rather than assist, the administration of the International Monetary Fund. Also, only experience can tell Whether operations of the kind proposed will invite massive Speculations in the foreign exchanges undertaken on the basis that at a projected point the Federal Reserve Banks, having reached the limit of their prescribed holdings of certain foreign currencies, will drop out or will be driven out of the market. The proposed mechanics of conducting the foreign exchange Operations of the Federal Reserve Banks through a managing committee courageously places any blame for failure of the venture on their heads. The first part of the discussion that ensued was directed primarily t°146.rd the sufficiency of the pertinent provisions of the Federal Reserve Act to permit maintaining accounts with foreign central banks for 13c)ses such as outlined in Mr. Young's memorandum. ' 1111 In this connection, Mr. r, xuxth described certain points that had been raised for consideration by Hexter, Assistant General Counsel. 6/26/61 There was general agreement that these facets of the problem clesrmi careful exploration at an appropriate time. However, there Ilas also general agreement with a suggestion by Chairman Martin that discussion of the problem should be focused initially on the question c't the desirability of entering into operations of this character. Accordingly, at the Chairman's request, several members of the staff e°nInlented informOly on the rationale of such operations, their possible effectiveness as a first line of defense against unusial and temporary fla48 of international payments, their relationship to operations of the International Monetary Fund, and various other related matters that %!Illed to warrant consideration. The members of the staff also expressed Irle4s, in response to questions raised by members of the Board, on natters such as the likely magnitude of Federal Reserve holdings of r°reign currencies, the conditions under which cooperative foreign echange operations presumably would be conducted, and the relationship °It etwisaged Federal Reserve holdings of foreign currencies to the dollar 11°1clings of foreign central banks. Comments likewise were made with l'e8Pect to the manner in which any losses resulting from such operations 11°Itid be reflected on the books of the Federal Reserve Banks and with l'esPect to the manner and timing of public reporting of Federal Reserve oPerations. No conclusions were drawn as the result of this discussion, and It Igas understood that the matter would remain under study. In this 6/26/61 -14- connection, Mr. Young indicated that certain additional memoranda that tilight be helpful in studying aspects of the proposal would be available for distribution to the members of the Board within the next few days. One of these, being prepared at the Federal Reserve Bank of New York, 140111,3, deal with operations of the Treasury's Stabilization Fund. Pursuant to a suggestion by the Chairman, it was agreed that e°Ples of the June 16 memoranda from Mr. Young and Mr. Furth would be sent to the members of the Federal Open Market Committee and the Federal Reserve Bank Presidents not currently serving on the Committee, and that e4clitional memoranda such as referred to by Mr. Young would be given distribution unless the confidential nature of their contents 1)rec1uded such a procedure. Messrs. Thomas, Young, Koch, Furth, and Sammons then withdrew 44(1 Mr. Eckert, Chief, Banking Section, Division of Research and Sta tistics, entered the room. Request of Justice Department regarding banks reporting in business 1°an survey. At the Board meeting on June 19, 1961, action was deferred °4 a reply to the request of the Department of Justice for a list of the 1 9°0 banks that submitted reports in the 1955 business loan survey or, ' 14 the alternative, an indication as to which of 43 banks listed by the be, ment had submitted reports in that survey. The reason for deferral was to permit discussion of the matter on the occasion of a c°4temPlated meeting between members of the Board and judge Loevinger, A8eistant Attorney General. -15- 6/26/61 Since it had now developed that it would not be possible to lirrange the envisaged meeting with Judge Loevinger at an early date, Governor Balderston suggested that the Board might wish to consider g°ing ahead with a reply to the Justice Department. With this thought in mind, he proposed certain changes in one of the alternative draft l'ePlies considered at the June 19 meeting. It was agreed that a revised draft incorporating these suggested chezges would be distributed later in the day for consideration at the 13°ard meeting tomorrow. The meeting then adjourned. Secretary's Notes: The Secretary was informed by Governor Shepardson that at a meeting in executive session the Board had authorized travel to Paris by Mr. Young, Adviser to the Board and Director of the Division of International Finance, and Mt. Hersey, Adviser, Division of International Finance, to attend a meeting of a working group of the Economic Policy Committee of the Organization for European Economic Cooperation to be held during the period July 1-5, 1961. The Secretary also was informed, in this connection, that the Board had authorized an appropriate representation allowance. It was understood by the Board that there would be additional meetings of the working group in connection with its current assignment, which meetings also would involve attendance by members of the Board's staff. Pursuant to the action taken by the Board at its meeting on June 12, 1961, in authorizing transmittal to the Commission on Money and Credit of final replies to certain questions submitted 6/26/61 -16to the Board by the Commission, subject to minor changes in the replies contemplated by the discussion at that meeting, the letter of which a copy is attached as Item No. 6 was sent to the Chairman of the Commission on June 23, 1961. Pursuant to recommendations contained in memoranda from appropriate individuals concerned, Governor Shepardson approved on behalf of the Board on June 23, 1961, the following actions relating to the Board' staff: ointment 141, Sem M. VanHook as Guard in the Division of Administrative Services, e,s1111 basic annual salary at the rate of $3,500, effective the date of rance upon duty. (Temporary appointment) Teav Phyllis H. Lockhart, Draftsman, Division of Research and Statistics, Qanted leave without pay for the period June 26 through August 1, 1961. Governor Shepardson today approved on behalf of the Board the following items: Letters to the Federal Reserve Bank of Chicago (attached Items 7 4fla R \ approving the appointment of James R. De Fay and William Taylor 48 assistant examiners. Letter to the Federal Reserve Bank of San Francisco (attached Ite assistant -&99 approving the appointment of Earl L. Abbott as , w1ner. N„ ) the Memoranda from appropriate individuals concerned recommending following actions relating to the Board's staff: ointment se Waiter Jordan, Jr., as Cafeteria Laborer, Division of Administrative lees, with basic annual salary at the rate of $3,185, effective the j tlill e of entrance upon duty. 6/26/61 -17rxnent following maternity leave Gail Jeanne Lennon, Draftsman-Trainee in the Division of Research tmcl. Statistics, with basic annual salary at the rate of $3,865, effective thuie 26, 1961. _increases, effective July 9, 1961 Division Litie Basic annual salary To From Office of the Secretary Maxgaret J. Moister, Assistant Supervisor, Administrative Subject & FOMC Files $ 5,655 $ 5,820 6,435 6,600 4,040 4,460 8,080 4,84o 14,380 4,145 4,565 8,340 5,005 14,705 4,675 14,705 14,380 10,635 8,955 4,355 1.4,055 4,840 15,030 14,705 10,895 9,215 4,460 14,380 6,435 6,600 7,820 8,080 4,040 8,080 4,145 8,34o Legal GexY P. Smith, Legal Assistant Research and Statistics 1441'8Eu-et Campbell, Clerk-Stenographer A T. Gregory, Statistical Clerk Z.Jane Moore, Economist a Roberts, Secretary tanleY J. Sigel, Chief, Flow of Rinds & Savings Section tances D. Skehan, Statistical Assistant ir,,arl Smith, Senior Economist °uert Solomon, Chief, Capital Markets Section v?rn H. Sutherland, Chief Librarian J. Swindler, Economist °.thY E. Swink, Statistical Clerk raY S. Wernick, Senior Economist ' r a International Finance 4434res c. wallace, Economist Examinations m74-vor Bockman, Assistant Federal Reserve on:kamine r jo lYn Cullipher, Stenographer Donovan, Federal Reserve Examiner 6//61 -18- ,k_arY 88 .J.n.creases, effective July 92_12§1. (continued) Division Basic annual salary From To Examinations 18011 D. Dougal, Senior Federal Reserve 141 , tixaminer Acizi-en P. Francoeur, Federal Reserve Examiner v Hadley Fraser, Assistant Federal Reserve a Examiner fte, 8 R. Joyce, Assistant Federal Reserve 41xerainer 3,,,, Y Marconi, Stenographer rrY B. Riley, Federal Reserve Examiner ; 'Jeannette sari yo Stenographer ) icara. P. Wendt, Senior Federal Reserve Examiner $12,730 $121 990 7,82o 7,425 8 o8o 7,820 5,665 5,850 3,970 4,145 8,34o 81600 3)970 10,895 4,075 11,155 6,930 71095 Office of the Controller L. I, Paite Waller, Jr., Supervisory Accountant Administrative Services to Etece Saul Clanton Gardener Division of IA a job with Allegheny Airlines to do office cleaning on weekday , d BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 1 6/26/61 WASHINGTON 25, D. C. e: ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD ttorI4 June 26, 1961 Board of Directors, New Jersey Bank and Trust Company, Clifton, New jersey. Gentlemen: Under condition of membership numbered 3, New Jersey- Bank and Trust Company was to dispose, Within a period of not to exceed three years, of all corporate stocks owned at the time of admission to membership. After considering all the circumstances, and in accordance with the request in your letter of May 26, 1961, the Board has extended until June 20, 1962, the time within which to comply with membership condition numbered 3. Very truly yours, (Signed) Merritt Sherman Merritt Sherman Secretary. BOARD OF GOVERNORS OF THE 4 4,1 t)OP C. FEDERAL RESERVE SYSTEM I'S 4' V Item No. 2 6/26/61 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE EIOARO .21 June 26, 1961 Board of Directors, Bank of Brodhead, Brodhead, Wisconsin. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Chicago, the Board of Governors of the Federal Reserve System approves, under the provisions Of Section 24A of the Federal Reserve Act, an additional investment in bank premises by Bank of Brodhead, through its wholly owned affiliate, Brodhead Realty Corporation, of $210,246.34, for the purpose of construction of a new bank building. It is understood .that financing of the new building will be accomplished through the bank's investment of a05,000 in common stock of the affiliate; investment by the directors of the bank of $60,000 in the affiliate through the issuance of preferred stock or debentures; and outside borrowings by the affiliate in the amount of $40,000. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. C;Irmichaell Assistant Secretary. BOARD OF GOVERNORS 0,411110,1,4. .;,4 OF THE Inta I 4. E.: FEDERAL RESERVE SYSTEM Item No. 3 6/26/61 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD June 26, 1961 Mi. Geo. E. Kroner, Vice President, Federal Reserve Bank of St. Louis, St. Louis 66, Missouri. Dear Ni. Kroner: Reference is made to your letter of June 12, 1961, regarding the change of location of the branch of Citizens Fidelity Bank and Trust Company, Louisville, Kentucky, which branch was to have been located in the vicinity of Strawberry Lane and Southside Drive, Louisville, Kentucky, initially approved by the Board of Governors on April 20, 1960. The Board of Governors interposes no objection to the change of location from within the city limits of Louisville, Kentucky, to Jefferson County, Kentucky, both locations being in the vicinity of Strawberry Lane and Southside Drive, the new location being about four blocks distant from the location initially approved. The ayArdis approval of the proposed branch dated April 20, 1960, and extended by the Board on January 18, 1961, may be considered effective for the new location as Set forth in your letter of June 12, 1961. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. • BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 4 6/26/61 WASHINGTON 25. D. C. ADDRESS. OFFICIAL CCIRRESPONDENCE TO THE BOARD June 26) 1961 Comptroller of the Currency, Treasury Department, Washington 25, D. C. - Attention Mr. Reed Dolan, Chief National Bank Examiner. Dear Mr. Comptroller: Reference is made to a letter from your office dated MaY 5 sa 1961, enclosing copies of an application of The Rillbuck b 1rings Bank Company, Fillbuck, Ohio, to convert into a national 0 king association and requesting a recommendation as to whether -c not the application should be approved. The applicant bank opened for business as a State-chartered ution in September 1900, and became a member of the Federal serve System in February 1941. The capital structure, future E44,111ings prospects, and general character of management of the bank t...a,regarded as satisfactory. The bank is well established and appears t . _oe serving the convenience and needs of the area. Accordingly, anBoard of Governors recommends favorable consideration of the *;Plication of the bank to convert into a national banking institu40n. ' i7 Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. ir).,4g1 A, TELEGRAM BOARD OF GOVERNORS OF THE Item No. 5 6/26/61 FEDERAL RESERVE SYSTEM LEASED WIRE SERVICE WASHINGTON June 26, 1961 SANFORD - NEW YORK Your wire June 22. Board approves the opening and maintenance of an account on your books in the name of the Bank Markazi Iran (the Central Bank of Iran), subject to the usual terms and conditions Avon which your Bank maintains accounts for foreign central banks and governments. It is understood that you will in due course offer participation to the other Federal Reserve Banks. (Signed) Merritt Sherman SHERMAN to,0" BOARD OF GOVERNORS ,0100Y , .l'Att , OFTHE 9 it Item No. 6/2061 FEDERAL RESERVE SYSTEM 6 WASHINGTON VI I i I Arr 04i OFFICE OF THE CHAIRMAN atCC 04440* June 23, 1961 Prazar B. Wilde, Chairman, .rnukission on Money and Credit, ) 1)-3. Fifth Avenue, " 14 York 22, New York: Nar Frazarz I have the pleasure of transmitting herewith final copy or 4t. vile Board's replies to the questions submitted to us by the kaureni Inti,J-ssion on Money and Credit. I understand you have in mind ' 011,1IV these replies available to the public. The Board has no deetion to such action on your part if you feel it would serve ' 113eful purpose. Let me take this occasion again to congratulate you and 5r°11r associates on having undertaken and brought to completion such tl'erriendous task. Your findings should provide the basis for ch fruitful discussion of the central problems in American °I.Imnie policy. , z Sincerely, . Wm. McC. Martin, Jr. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 7 6/26/61 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD 044*** June 26, 1961 Mr. Hugh J. Helmer, Vice President, Federal Reserve Bank of Chicago, Chicago 90, Illinois. Dear Mr. Helmer: In accordance with the request contained in your letter of June 16, 1961, the Board approves the appointment of James R. De Fay as an assistant examiner for the Federal Reserve Bank of Chicago.. Please advise us of the effective date of the appointment. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 214 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 8 6/26/61 WASHINGTON 251 CI. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD June 261 1961 Mr. Hugh J. Helmer, Vice President, Federal Reserve Bank of Chicago, Chicago 90, Illinois. Dear Mr. Helmer: In accordance with thp request contained in your letter of June 14, 19612 the Board approves the appointment of William Taylor as an assistant examiner for the Federal Reserve Bank of Chicago. Please advise us of the effective date of the appointment. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVER NORS OF THE Item No. „ FEDERAL RESERVE SYSTEM 6/26/61 9 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE SOARO June 26, 1961 Mr. Eliot J. Swan, President, Federal Reserve Bank of San Francisco, San Francisco 20, California. Dear Mr. Swan: In accordance with the request contained in your letter of June 14, 1961, the Board approves the appointment of Earl L. Abbott as an assistant examiner for the Federal Reserve Bank of San Francisco. Please advise us of the effective date of the appointment. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistaht Secretary.
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