The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
5 Minutes for To: March 17, 1960. Members of the Board Prom: Office of the Secretary copy of the minutes of the Board of Attached is a Governors of the Federal Reserve System on 'he bove date. It is not proposed to include a statement wi threspect to any of the entries in this set of linutes in the record of policy actions required to e maintained pursuant to section 10 of the Federal , Aeserve Act. t Should you have any question with regard to the minutes, it will be appreciated if you will advise the 0_ k)cretary's Office. Otherwise, please initial below. were present at the meeting, your initials will eate approval of the minutes. If you were not present, "ur initials will indicate only that you have seen the tinUtee. It2 Chin. Martin Gov. Szymczak Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. King It Minutes of the Board of Governors of the Federal Reserve System on Thursday, March 17, 1960. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Mr. The Board met in the Board Room at 10:00 a.m. Martin, Chairman Balderston, Vice Chairman Szymczak Mills Robertson Shepardson King Mr. Sherman, Secretary Miss Carmichael, Assistant Secretary Mr. Shay, Legislative Counsel Mr. Hackley, General Counsel Mr. Farrell, Director, Division of Bank Operations Mr. Solomon, Director, Division of Examinations Mr. Goodman, Assistant Director, Division of Examinations Mr. Hooff, Assistant Counsel Items circulated or distributed to the Board. The following items Which had been circulated or distributed to the Board and copies °r //hich are attached to these minutes under the respective item numbers irQated, were approved unanimously: Item No. l int? to The First National City Bank of New York, br" 'lark City, approving the establishment of a '43.tich in Colon, Republic of Panama. Letter to The First National City Bank of New York, tlev a(kii rk City, approving the establishment of an or branch in the City of Panama, Republic raaama. Letter 4. -0 the Federal Reserve Bank of Cleveland coe ssiag the opinion that gifts of merchandise e. between $1.47 and 433.20 in connection with „111ber , Azioe bank's proposed savings deposit promotional would not involve an indirect payment of -rest on deposits. 1 2 3 11( t)fi. 3/17/60 -2Item No. letter to Senator Robertson, Chairman, Senate 4 iin , euking and Currency Committee, concerning the t, , ---a i s view on S. 3158, "To exempt State cons401-led banks belonging to the Federal Reserve .Y,,stem from the statutory limits on the number 04 their directors." With reference to Item No. 4, Governor Mills questioned the Pr°ced-ure of enclosing in the letter to Senator Robertson a copy of Cli"lan Martin's letter of February 2, 1960, to Senator Frear, Chairman or the Senate Banking and Currency Subcommittee on Federal Reserve. After mr. Shay indicated that the letter to Senator Robertson had been dral%ted in a form to enclose the February 2, 1960, letter to Senator I'llear at the suggestion of Mr. Yingling, Chief of Staff of the Senate 13411k14g. and Currency Committee, it was agreed that this procedure would be satisfactory. Cali for reports of condition. It was reported that a letter c16:tecl March 16, 1960, had been received from the Comptroller of the CUI'relleY advising that a call would be made upon all national banks on Iviesl'ell 18, 1960, for reports of condition as of the close of business March 15, 1960; and that, in accordance with the usual practice, telegra111 had been sent by the Secretary to the Presidents of all Federal Reserv_ Banks on March 16 requesting that a similar cp11 be made upon State member banks. The action taken in sending the telegram was ratified by 1111441 ' - °11s vote. ' 3/17/6o -3Messrs. Goodman and Hooff withdrew from the meeting and Messrs. Y°1111g, Adviser to the Board, and Noyes, Director, Division of Research Ettli Statistics, entered the room. Letter to Chairman Martin from a group of Senators. Chairman Martin referred to the letter addressed to him under date of March 12, 1960 'signed by 21 Senators, and presenting certain suggestions as to 111°IletarY policy and its administration. He said that he had in mind 'Bending at this time a routine acknowledgment to each of the Senators 111° had signed the letter, advising them that a reply would be furnished after the matters covered in the letter had been studied. 1111Etrii,, There was 1-1s agreement with this procedure. A general discussion followed concerning the type of reply that 1401.04 it be appropriate in responding to the letter from the Senators, and /es noted that the staff was preparing a draft of reply for the e°4si deration of the Board. The meeting then adjourned. r-, Th ,—i7)1 — Secretarv i BOARD OF GOVERNORS OF THE Item No. 1 3/17/60 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD March 17, 1960. c. j 'e First National City Bank of New York, Well Street, Y()rk 15, New York. Geriblemen: The Board of Governors of the Federal Reserve System y zes The First National City Bank of New York, New York, c)riz, Pursuant to the provisions of Section 25 of the Federal Rese„ Act, to establish a branch in the City of Colon, Republic Op to ' ' L arra, at the corner of Front and Ninth Streets, Colon, and such rate- and maintain such branch subject to the provisions of est b;'?etion. The location of the branch may not be changed, after ."shment, without the prior approval of the Board of Governors. bu,Thl Unless the branch is actually established and opened for 8 on or before Xarch 1, 1961, all rihts granted hereby shall be de " Id,11 ellled to have been abandoned and the authority hereby granted utoraatically terminate on that date. ,It is understood that upon establishment of the Colon tne branch located at 1103 Roosevelt ILvenuo, Cristobal, 11111.1„i °11 , will be closed. Please advise the Board of Governors, Cong, through the Federal Reserve Bank of New York, when the 'ranch is opened for business and the Cristobal Branch closed. '44tch C rlaa. 3 Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS ,441,14, 40 4444* ti)40.' 40 OF THE La .0 Item No. 2 3/17/60 FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS arrIcIAL CORRESPONDENCE Ittit * TO THE BOARD 41PA'S March 17, 1960. I 5lf1e First National City Bank of New York, Wall Street, 'lel/ York is, New York. Ge ntlemen: The Board of Governors of the Federal Reserve System authori NelTy zes The First National City Bank of New York, New York, Pursuant to the provisions of Section 25 of the a1 Reserve Act, to establish a branch on the premises of the arid Panama Hilton Hotel, City of Panama, Republic of Panama, of t° oPerate and maintain such branch subject to the provisions Section. The location of the branch may not be changed, after' establishment, without the prior approval of the Board of uverners Unless the branch is actwlly established and opened "c)r, bhArob"slness on or before March 1, 1961, all rights granted shall be deemed to have been abandoned and the authority -127 granted will automatically terminate on that date. the F , Please advise the Board of Governors in writir.7, through ecleral Reserve Bank of New York, when the branch is established °Pened for business. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. I Of,. BOARD OF GOVERNORS ,444144 601/4 OF THE Item No. 3 FEDERAL RESERVE SYSTEM 3/17/60 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD -ilatta*** March 17, 1960. t r-r. Paul C. Stetzelberger, Vice President, 'ederal Reserve Bank of Cleveland, ,aeveland 1, Ohio. Dear Mr. Stetzelberger: This refers to your letter of February 26, 1960, trans- g copies of correspondence between your bank and First National B;"4. of Meadville, Pennsylvania, requesting consideration by the men'of a savings deposit promotional program involving gifts of st cnandise costing the bank between 0..47 and 3.20. It is under1101T that selection would be made by the depositor and the gift or be offered upon the opening of a new account of 5C) or more 1-41e addition of $50 or more to an existing account. As you know, the Board stated in its letter of December 15, 1958 ( 2-1683; of. F.R.L.S. #6245), that the practice of giving a premium he_11°Plinal value to a new depositor at the time of the opening of a iricount and not on a recurring basis would not be regarded as an ?" Payment of interest. The Board also said that the same del:J-Pie would apply to a premium given to an existing savings pro , sitor during the period of a drive to promote new accounts, ree vtcled such drives are not repeated frequently and no depositor elves more than one premium during the period of the drive. Inerch . The Board is of the opinion that the cost of the gifts of the 2-ndlse here proposed may be regarded as nominal and that, in act,71 4 cumstances stated, such gifts should be considered as an 'llsing expense rather than an indirect payment of interest. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. 106 BOARD OF GOVERNORS OF THE Item No. 4 FEDERAL RESERVE SYSTEM 3/17/60 WAS OFFICE OF THE CHAIRMAN March 17, 1960. The Honorable A. Willis Robertson, Chairman, Committee on Banking and Currency, United States Senate, gashington 25, D. G. Dear Mr. Chairman: This is in reply to your request of March 11, 1960, for the Board's views on the bill S. 3158, "To exempt State controlled banks belonging to the Federal Reserve System from the statutory limits on the number Of their directors." The bill was introduced by benator Frear on March 10, 1960. Enclosed is a copy of my letter of February 2, 1960, to Senator Frear. As indicated by the last paragraph of that letter, the I;oard would have no objection to the enactment of S. 3158. Sincerely yours, (Signed) Wm. McC. Martin, Jr. McC, Martin, Jr. Enclosure
@FedFRASER