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59 Minutes for To: march 24, 1961 Members of the Board From: Office of the Secretary Attached is a copy of the minutes of the !oard of Governors of the Federal Reserve System on 1:le above date. It is not proposed to include a statement Igith respect to any of the entries in this set of !linutes in the record of policy actions required to ,15,e maintained pursuant to section 10 of the Federal geserve Act. Should you have any question with regard to the minutes, it will be appreciated if you will advise the Secretary's Office. Otherwise, please initial below. You were present at the meeting, your initials will 44dicate approval of the minutes. If you were not present, Your initials will indicate only that you have seen the mirlutes. Chm. Martin Gov. Szymczak Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. King Minutes of the Board of Governors of the Federal Reserve System Ori --"laY, March 24, 1961. PRESENT: 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 Shepardson King Mr. Sherman, Secretary Kenyon, Assistant Secretary Thomas, Adviser to the Board Shay, Legislative Counsel Molony, Assistant to the Board Fauver, Assistant to the Board Noyes, Director, Division of Research and Statistics Mr. Holland, Adviser, Division of Research and Statistics Mr. Koch, Adviser, Division of Research and Statistics Mrs. Semia, Technical Assistant, Office of the Secretary Mr. Petersen, Special Assistant, Office of the Secretary Mr. Eckert, Chief, Banking Section, Division of Research and Statistics Mr. Yager, Economist, Division of Research and Statistics Mr. Mr. Mr. Mr. Mr. Mr. M°11eY market review. Isestlit2 of the Treasury's Mr. Thomas reported briefly on preliminary exchange refunding offer, after which Mr. Ner di scussed the course of the Government securities market, distributing set of charts showing trends in yields and dealer positions. Mr. Eckert l'eviewed developments with regard to bank reserves. After a brief discussion during which certain questions were ise °4 the basis of the information presented by the staff, all of 3/24/61 -2- the members of the staff withdrew except Messrs. Sherman, Kenyon, and FltUlfer) and Mrs. Semia. Discount rates. The establishment without change by the Federal Reserve Banks of New York, Philadelphia, Cleveland, Richmond, St. Louis, Kiri neapolis, Kansas City, and Dallas on March 23, 1961, of the rates °4 discounts and advances in their existing schedules was approved 141441 1ous1y, with the understanding that appropriate advice would be sert to those Banks. Items circulated to the Board. The following items, which had beerl circulated to the Board and copies of which are attached to these 141411tes under the respective item numbers indicated, were approved 141aalmously: . Item No. Lett Te er to First National Bank of Borger, Borger, pov xe 'r s) s aPproving its application for fiduciary • t"ter +,.(3 all Federal Reserve Agents regarding ReeF,Zon of the form of "Receipt of Federal ve Agent for Federal Reserve Notes" so that E4.1 411CulY authorized representative of a Reserve Vith' whether or not an officer, may sign as tlIelss to delivery of Federal Reserve notes to ?re,',reral Reserve Agent. (With a copy to the ent of each Federal Reserve Bank) tett_er to the Presidents of all Federal Reserve tklk by : lg regarding revision of Form F. R. 416, used ' eklY reporting member banks. Mrs. Semia withdrew from the meeting at this point. 1 2 3 3/24/61 -3Director appointments. On the basis of information contained in a IlleMOraildUM from Mr. Fauver dated February 16, 1961, which had been distributed, there was a discussion of the situation with respect t° Class C directors who, under the Board's current rotation policy, .4°1113- not appear to be eligible for reappointment when their current tell13 expire on December 31, 1961. In this connection Chairman Martin /las aUthorized to explore further with Chairman Van Buskirk of the ?ederal Reserve Bank of Cleveland the possibility of appointing as Mr. Van' Thiskirk's successor at the expiration of his current term Mr. j°8ePh B. Hall, President of The Kroger Company, Cincinnati, Ohio. It 14/4 noted that Mr. Hell had served as a Bank-appointed director of the eineinnati Branch from January 1949 through 1954, and as a Class B director of the Cleveland Bank from 1955 through 1960, and that his re413130intment would not appear to be in contravention of the terms of the zoard's rotation policy. Hearing examiner. With reference to the discussion on March 10, 1961, regarding a hearing on the application of New York Holding Corporatiov, 4., White Plains, New York, to acquire shares of Bankers Trust C014, 4.riaNY, New York City, and County Trust Company, White Plains, New York, Mr, sh erman reported that arrangements had now been completed to obtain the 8_ ryices of Charles W. Schneider as hearing examiner. Accordingly, 141% P -elineider's designation as such was approved unanimously. The meeting then adjourned. - BOARD OF GOVERNORS O r THE 0400 0 ** LoW41,*4 4 p'tr ,- ,•9 10 FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 1 3/24/61 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD 4 March 24, 1961 of Directors, ;4-rst National r:,rk of Forger, r, Texas. Gell tlemen: The Loafd of Governors of the Federal iescrve system has given ,, oonsideratiDn to your application for fiduciary pours and kr„ 's cFirst qational Loci: of Forger authority to act, when not in ist:avention of :Aatc or local laa, as trustee, executor, admin.ti ,-tttor, reistrar of :,tocks and bonds, E,uardian of estates, as1.: ", 1 receiver, co14,Littee of estates of lunatics, or in any other ec ,ci"ry c,,pacity in which state barics, trust companies, or other c orations tklich come into competition with national banks are pe7 itted to act ualer the laws of the 3tate of Texas. The exer\°Y such ri,bts shall be subject to the provisions of Section Of the Federal Reserve Act and aeL;ulation Y of the hoard of 'rnors of the Federal ResErve system. 4 h formal certiricate indicatln, the fiduciary powers that now authorized to exercise will be forwarded in due is °ank Very trulf. yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Lecretary. koto,, BOARD OF GOVERNORS §11 OF THE FEDERAL RESERVE SYSTEM 5-1786 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD March 24, 1961. ear sir. qope ,., In its letter of October 13, 1960, the Board stated that Ilese "ere being taken to have the form of "Receipt of Federal ! °1NA e r,ISent for Federal Reserve Notes" (Treasury Form 2341A, ;:l'er of the Currency) revised so that any duly authorized ,,, .ative of the Reserve Bank, whether or not an officer, bt --7 qtter41 'gn Re as Witness to delivery of Federal Reserve notes to the serve Agent. tierve 1. The revised receipt form will be used by the Federal Reand Redemption Division beginning April 1961. , rg1141.11, Also the revised Form 2341A omits a former provision rewitnes;es to the signatures on the receipt for the notes and ellefication as witness to the delivery. This provision had ioderapit!erfluous for some years because the Federal Reserve Issue and lellto sI°11 Division maintains a file of specimen signatures of the rePr esentatives and of Bank officers. 4410r. llow that some Reserve Banks will authorize employees other to witness deliveries of notes to the Agent, specimen IlreR air these employees will be needed. If any such employees lAtiv -eadY been authorized, please submit specimen signatures ' Ire be" Instructions for the submission of specimen signatures en revised as shown below. O Orri nThe Federal Reserve Issue and Redemption Division, tioa;: 1? of the Comptroller of the Currency, and the spe;:4.8 Division of Bank Operations maintain files of 5llp-11 n signatures necessary in connection with Pecc.:4;-ng Federal Reserve notes and keeping accounts of Reserve notes issued and outstanding. tiks,jn order that these files of specimen signatures be ar maintained currently on a formal basis, it will i)ec.gfeciated if, at the time of new appointments, 'n signatures are sent the Board's Division of Item No. 2 3/24/61 Q • # -2- S-1786 18ank Operations, on whit cards (3 x 5 inches) one sigre to a card--two sets each of signatures of the FedReserve Agent, the Assistant Federal Reserve Agent, !rid the Alternate Assistant Federal Reserve Agents, and ;Ile set each of signatures of the Federal Reserve Agent's :!Presentatives at branches and of representatives of : 4.10 Bank other than officers who have been authorized to :Itness deliveries of Federal Reserve notes to the FedReserve Agent. (For signatures of the Reserve Bank's ' vIsed.) Ileers the Bank's circular of authorized signatures is ‘ n ..ter supersedes the Board's letter of April 10, 1958, (S-1653). is being sent to the President of your Bank for his information. Very truly yours, Merritt Sh Secreta RESERVE ENS BOARD OF GOVERNORS S-1787 OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 3 3/24/61 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD March 24, 1961. TO THE PRESIDENTS OF ALL FEDERAL RESERVE BANKS N.ch incident to the revisions being made n the reports of condition were described in the Board's letter of March --ges 16, 1961, corresponding re being made in the forms used by weekly reporting member banks. of changes in the weekly report are only in the deposit items and a the revised thesigrie,,'ne form F. R. 416 is enclosed. New code words have been . 1 0\4.sto those items affected by the revision. The Budget Bureau number of °L form will be telegraphed when received. °,11,1 and ,,Weekly reporting member banks should be asked to report on both the 'te 017 'le revised bases on Wednesday, April 261 1961, for purposes of a oneerlap , lanerl , ) and on the revised basis thereafter. The revised data will be fl the weekly statement beginning with the first week in May, with year-ago figures shown on a comparable basis. h time of the 3 adj,1At t-e publication of the revised data in the weekly statements that have been made since July 8, 1959, to correct the discon01,11;,inrtroduced by mergers, will be eliminated; with the recent merger in tilos'e"adjustment bank" now totals over $1.5 billion. It will be necessary ki'lltairlintteserve Banks that have been using the "adjustment bank" method of 8, 14 co ntinuity, to submit estimated Wednesday data back to and including 9.) for those banks now included in the adjustment bank category. i''or 110.11111tex,134-o ' u1_1 to their merger into the series, these estimates should be obtained b from call report and other available information. No attempt -triz e made to estimate figures for the revised classifications or subdivided tiotthtioil It would be appreciated if these estimates for the Wednesdays of April I MaY 25, 1960 be forwarded to the Board's Division of Bank Operations th -ozi as an April 26, and for other Wednesday dates beginning in July 1959 Practicable thereafter. th Illerlto A rearranFement of the deposit items will be made on the weekly press 1/eekis.Y and an illustration of the form in which it is planned to publish releases (H.4.2, H.4.2a, H.4.2b, and H.4.3) is enclosed. Very trurs, t iree. Merritt Secre
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