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609
Rev. 10/59
Minutes for
To:
March
4, 1960.
Members of the Board
From: Office of the Secretary
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 below.
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. Szymczak
Gov. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
Gov. King
91
Minutes of the Board of Governors of the Federal Reserve System
on Friday, March 4, 1960.
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
Robertson
King
Sherman, Secretary
Kenyon, Assistant Secretary
Molony, Assistant to the Board
Fauver, Assistant to the Board
Hackley, General Counsel
Farrell, Director, Division of Bank Operations
Solomon, Director, Division of Examinations
Hexter, Assistant General Counsel
Furth, Associate Adviser, Division of International Finance
Mr. Conkling, Assistant Director, Division of
Bank Operations
Assistant Director, Division of
Nelson,
Mr.
Examinations
Mr. Goodman, Assistant Director, Division of
Examinations
Miss Hart, Assistant Counsel
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Letter to Mr. Beise
(Item No. 1).
When President Beise of
Of America National Trust and Savings Association, San Francisco,
California, met with the members of the Board on January 29, 1960,
reference was made to a computation on the Form for Analyzing Bank
CaPital which indicated that as of July 31, 1959, the date of most
recent examination, the bank's capital was only 70.3 per cent of the
"total capital requirement".
Mr. Beise asked to be furnished a copy
°f this analysis, together with a similar analysis as of December 31,
195e.
3/4/60
-2A draft of letter to Mt. Beise, prepared for Chairman Martin's
signature, had been circulated to the members of the Board prior to
this meeting.
The letter would transmit the requested analysis as of
JulY 31, 1959, an analysis as of October 31, 1956, the date of examination closest to December 31, 1956, and the suggestion that Bank of
America might be able to prepare a similar analysis as of December 31,
1956, from its internal records and a partial analysis Which had been
Prepared in the Board's offices on the basis of call report data.
The
letter would also make certain comments regarding the use of the Form
for Analyzing Bank Capital and the capital position of the national
bank and Bank of America, New York, at the time the latter institution
vaa granted permission to acquire the stock of Banca 0,America e d'Italia.
In response to an inquiry by Governor Mills, Mr. Solomon stated
that the Form for Analyzing Bank Capital was no longer held on a confidential basis, its existence was a matter of public information, and
it had been used substantially in the course of the section 9 proceeding
involving The Continental Bank and Trust Company, Salt Lake City, Utah.
Thereupon, the letter to Mr. Beise, a copy of which is attached
as Item
was approved unanimously.
Amendment to Regulation U.
At yesterday's meeting of the Board,
it lias decided to amend section 221.3(b)(1) of Regulation U, Loans by
Banks for the Purpose of Purchasing or Carrying Registered Stocks, so
as to restore the section to the form in which it stood prior to
3/4/60
...3_
June 15, 1959. In accordance with the understanding at that meeting,
There had been distributed to the members of the Board a memorandum
from the Legal Division dated March 4, 1960, submitting a draft of
notice for publication in the Federal Register.
One paragraph of the proposed notice would state that section
221.3(b)(1) had been amended to read as follows: "No loan, however it
IftY be secured, need be treated as a loan for the purpose of tcarryingt
a stock registered on a national securities exchange unless the purpose
Of
the loan is to enable the borrower to reduce or retire indebtedness
'which was originally incurred to purchase such a stock, or, if he be a
broker or dealer, to carry such stocks for customers."
The succeeding
Part of the notice would advise that the purpose of this amendment was
to restore the language of paragraph (b)(1) in effect before June 15,
1959, in order to avoid administrative complexities and problems that
had developed under the language of such paragraph as it had been in
effect since June 15, 1959.
The notice would go on to state, however,
that this amendment was not intended to imply that the Board was not
concerned with the problem of controlling loans by banks for the purpose
of carrying registered stock and that the Board would, of course, expect
batiks and lending officers to continue to cooperate in administration
Of the Regulation in accordance with its purposes and spirit.
Mr. Hackley reported that since the memorandum was distributed
there had been staff discussion of a suggestion intended to clarify
3/4/6o
_14._
section 221.3(b)(1), as amended, but that there was some hesitancy in
recommending a wording different from the exact language in effect
Prior to June 15, 1959.
The possible change would insert the words
or carry" after the word "purchase" toward the end of the paragraph
sO that the
portion of the sentence would read: "....originally incurred
to purchase or carry such a stock, or....".
Messrs. Hackley and Hexter then described circumstances in
which the insertion of the words "or carry" would tend to preclude a
misunderstanding that could permit evasion of the "carrying" provisions
Of Regulation U.
It was noted, however, that an alternative possibility
vould be to cover the matter by Board interpretation if questions should
arise.
After some discussion of this point, consideration was given
to the comment in the proposed notice regarding the amendment to
Regulation U.
From the views expressed, it appeared that the phrasing
Of the explanatory portion
of the notice was along lines that were
generally acceptable to the members of the Board.
The suggestion then was made that action on the publication of
the notice be deferred in order to permit further staff consideration
the matter, including the question relating to the language of the
Eullendinent that had been presented by Messrs. Hackley and Hexter.
There
/jae agreement with this suggestion, and it was understood that another
draft of Federal Register notice reflecting such revisions as the Legal
3/4/60
-5-
Division might deem appropriate would be distributed to the Board with
a view to discussion at the meeting on Monday, March
7.
Miss Hart then withdrew from the meeting.
Items circulated to the Board.
been
The following items, which had
circulated to the members of the Board and copies of which are
attached hereto under the respective item numbers indicated, were
approved unanimously:
Item No.
Letter to the Federal Reserve Bank of New York
interposing no objection to an extension of the
leave without pay granted to Lawrence S. Ritter
to enable him to continue his service with the
Committee
on Economic Developmentfs Commission
On Money and Credit.
2
Letter to the Federal Deposit Insurance Corporation
11;egarding the application of the Kentucky-Farmers
ank of Catlettsburg, Catlettsburg, Kentucky, for
continuation of deposit insurance after withdrawal
from membership in the Federal Reserve System.
3
Letter to the Denmark State Bank, Denmark, Wisconsin,
iving the requirement of six monthst notice of withraval from membership in the Federal Reserve System.
'
4
r
Letter to the Federal Deposit Insurance Corporation
egarding the application of the Commercial State
ank of El Campo, El Campo, Texas, for continuation
?f deposit insurance after withdrawal from membership
ln the Federal Reserve System.
liretter to the City National Bank of Beverly Hills,
everlY Hills, California, continuing the permission
,
reviously granted to maintain reduced reserves.
'
5
6
3/4/60
-6Item No.
Letter to the Farmers and Merchants Bank, Hannibal,
Missouri, approving the establishment of a branch
at 218 Broadway and an investment in bank premises.
7
Letter to the Bar Harbor Banking and Trust Company,
Bar Harbor, Maine, approving the establishment of a
branch in Blue Hill.
8
Letter to The First National City Bank of New
el/York City, approving a change in the location
of its branch in the Santurce area of San Juan,
Puerto Rico.
9
Latter to The Central Bank Company, Lorain, Ohio,
ranting its request for permission to exercise
fiduciary powers.
10
Letter to the Peoples Bank & Trust Co., Montgomery,
approving its application for membership
,
41 the Federal Reserve System.
11
Applications to carry reduced reserves
•
(Items 12-16).
There
had been circulated to the Board applications from McLachlen Banking
Cr3rPoration, Washington, D. C., Michigan Avenue National Bank of Chicago,
Mid-America National Bank of Chicago, and Lincoln National Bank, all
°I' Chicago, Illinois, and Penn Square National Bank of Oklahoma City,
0111ah0ma, for permission to carry reserves required to be maintained
by
banks located outside of central reserve and reserve cities.
In
each case the recommendation of the Federal Reserve Bank concerned and
the Division of Bank Operations was favorable.
In reply to a question by the Chairman as to progress on the
Part of the staff toward presenting recommendations for the Board's
3/4/60
-7-
consideration in regard to standards for the classification of cities
and banks for reserve purposes, Mr. Farrell stated that two drafts
had been cleared at staff level by Mr. Thomas and a memorandum should
be available to the Board shortly.
MT. Farrell also reported a telephone call from the president
Of a member bank in Chicago who noted that certain competing institutions
had been granted permission to carry reduced reserves and urged that
standards of general application be adopted by the Board as promptly
as possible.
been
The bank whose president called on the telephone had not
granted permission to carry reduced reserves because its deposit
structure
was such as to raise a question with regard to its classification
Under standards hereafter adopted by the Board.
Governor Robertson noted that this bank (Chicago City Bank and
Trust
Company) applied in November 1959 for waiver of the requirement of
six months' notice of withdrawal from System membership, but that action
"the request was deferred pending consultation with the Federal Deposit
InaUrance Corporation.
It developed subsequently that the Corporation
was unwilling to continue insurance for the bank as a nonmember bank
additional capital was provided to the same extent as previously
reqUested by the Federal Reserve System.
The president of the bank
l'ePortedly had now indicated that the bank would not leave the System
ir
its reserve requirements were reduced.
3/4/60
-8Governor Robertson went on to say that he did not see how the
Board could refrain from acting favorably on the five applications now
before it for permission to maintain reduced reserves in view of action
Previously taken in similar cases.
However, by these individual actions
the Board was reducing required reserves in the aggregate in substantial
amount.
When standards were adopted, the result presumably would be a
raising of reserve requirements for some banks, assuming the Board felt
that aggregate required reserves were at about the appropriate level at
the present time. Thus, if a large number of applications to carry
reduced reserves were granted in the meantime on an individual basis,
the effect of adoption of the standards might be predominantly in the
direction of moving banks upward in classification.
Thereupon, the five applications to maintain reduced reserves
that had been circulated to the Board were approved unanimously.
Copies
c't the letters sent to the respective banks pursuant to this action
are
attached as Items 12 through 16.
Messrs. Farrell and Conkling then withdrew from the meeting.
Discount rates.
Unanimous approval was given to telegrams to
the Federal Reserve Banks of New York, Philadelphia, Chicago and San
?rancisco approving the establishment without change by those Banks on
March
3, 1960, of the rates on discounts and advances in their existing
achedules.
899
3/4/60
-9Withdrawal from membership (Item No. 17).
Unanimous approval
14as given to a letter to the Security State Bank, Sheldon, Iowa,
'waiving the requirement of six months* notice of withdrawal from
membership in the Federal Reserve System.
A copy of the letter, which
had been circulated to the Board, is attached as Item No. 17.
Establishment of foreign bank branches in New York (Item No. 18).
In a telegram dated February 29, 1960, Mr. Walter J. Mahoney, Temporary
P
resident of the New York State Senate, requested the opinion of Chairman
Martin on the desirability of permitting foreign banks to establish
branches in the State of New York.
A bill for that purpose was before
the State Legislature.
A memorandum from Mr. Walter Young of the Legal Division which
had be
en distributed to the Board under date of March 2, 1960, pointed
ollt that
the laws of the various States operating to prohibit or
restrict foreign banking had been the subject of recent inquiries by
a number of foreign parties.
The memorandum noted that restrictions
Of this type could hardly be justified While branches of United States
banks are allowed to operate in foreign countries, and also that a
movement now
under way in Brazil might culminate in legislation against
°I/erations of foreign-owned banks in that country.
Attached to the
Illanlorszdum was a copy of a telegram sent by the President of the New
1°11z Reserve Bank on February 29, 1960, in reply to a wire from
148.h°11aY, which indicated that the Reserve Bank had long favored
Mr.
3/4/60
-10-
permitting foreign banking corporations organized in foreign countries
(other than those performing central banking functions) to conduct a
general commercial banking business in New York State on substantially
the same terms as those on which domestic banks are permitted to
conduct business within the State.
Mr. Hayes' wire stated that the
Reserve Bank, therefore, would generally favor legislation permitting
vell-regarded foreign commercial banks to establish and operate branches
in New York State, subject to the control and supervision of the State
Banking Department.
Submitted with Mr. Young's memorandum was a draft of telegram
that
might be sent to Mr. Mahoney by Chairman Martin.
The telegram
/4°111d state that Chairman Martin favored in principle permitting foreign
c°Innlercial banks to establish branches in New York State under appropriate regulation and supervision.
In discussion, Governor Mills suggested that use of the language
ftra
v°r in principle" was indicative of some degree of doubt or indecision
:
1
that it might be desirable to omit the words "in principle."
There was agreement with Governor Mills' suggestion, it being
not
In this connection that the telegram would refer to the establish-
rile
"°f branches by foreign commercial banks "under appropriate regulation
alld supervision."
Governor Robertson indicated that he favored permitting foreign
11:"k8 to establish branches in this country.
He suggested, however, that
3/4/60
-11-
any expression of opinion might be in terms of branches in the United
States, rather than New York State specifically, and in terms of
favoring legislation on a reciprocal basis which would permit banks
in foreign countries to operate branches in the United States if the
statutes of those countries accorded equal privileges to American banks
wishing to operate branches abroad.
Comments by members of the staff on the points raised by
Governor Robertson were to the effect that the encouraging of foreign
countries to adopt legislation on a reciprocal basis might raise
serious questions and that there was something to be said for confining
a reply to an officer of the New York State Legislature to the particular
situation on
which an opinion had been asked.
It was pointed out also
that foreign banks principally desire to establish branches in New York
City.
Governor Szymczak added that an expression favoring permission
for foreign
banks to operate branches in the United States might cause
the
New York State legislators to think in terns of delaying action
Pending the passage of comparable legislation by other States.
Chairman Martin, who had earlier raised the question whether the
lel31Y to Mr. Mahoney should be phrased as a telegram reflecting the point
'
of view of the Board as a Whole, then stated that he wished to withdraw
the qUaation. Although the reply to Mr. Mahoney might be interpreted
48 an expression of the Boardts position in any event, it vas his
3/4/60
-12-
thought that use of a personal reply would leave the Board, as such, in
a more flexible position if it should be necessary to give further consideration at a later time to the problem of foreign bank branches in
this country.
In reply to an inquiry by Governor King as to the advisability
cq* offering comments on State legislation, Mr. Solomon pointed out that
the establishment by American banks of foreign branches is a matter
vithin the scope of the Board's responsibilities and that American
banks seeking to establish such branches might be asked by foreign
authorities why permission should be granted if restrictions existed
011 the operation of branches of foreign banks in the United States.
Accordingly, from the standpoint of its own responsibilities, the
Board had at least an indirect interest in the proposed legislation
In New York
State.
In reply to a further question by Governor King regarding the
likelihood of Congressional consideration of the subject, Mr. Solomon
atated that in essence the Federal Government had taken the position
in the past that it did not want to override State laws.
Governor Robertson asked if it was known whether Mr. Mahoney
had sent a similar wire to the Department of State, to which Mr. Goodman
l'aPlied that from copies of State Department dispatches received in the
illoardls offices it was known that the Department had importuned the
Nav York State authorities to take action in this area, particularly in
Iliav
Of
the Brazilian developments referred to in Mr. Young's memorandum.
9t
3/4/60
-13It was then agreed that the reply to Mr. Mahoney should be sent
in the form of the draft submitted by the staff, that is, a personal
acknowledgement by Chairman Martin, with the words "in principle"
omitted, as suggested by Governor Mills.
A copy of the telegram sent by Chairman Martin to Mr. Mahoney
later in the day, with a copy to the Federal Reserve Bank of New York,
is attached as Item No. 18.
All of the members of the staff except Messrs. Sherman and
KenYon then withdrew from the meeting and Messrs. Thomas and Young,
Advisers to the Board, and Noyes, Director, Division of Research and
Statistics, entered the room.
Money market developments.
randum dated March
4, 1960,
Chairman Martin referred to a memo-
that had been handed to him by Governor Mills,
in /dlich the latter discussed alternative methods for the implementation
Of Federal Reserve credit policy at this juncture, with particular
reference to
the possible utilization of the reserve requirement
instrument in combination with open market operations.
At the Chairman's request, Governor Mills reviewed the points
covered in his memorandum and made additional explanatory comments,
f°11°1ing which there was a brief discussion of the Government securities
aside
Chairman Martin then made the suggestion that time be set
day each week for the Board to receive comments by members of the
0;11
3/4/60
-i4-
staff, including Messrs. Thomas and Keir, on developments in the
Government securities market and related matters.
There was unanimous agreement that the procedure suggested by
the Chairman should be followed.
Upon inquiry, Mr. Thomas stated that
14(IndaY would be a desirable day of the week for such a review, and it
vaS understood that the first of the weekly staff reviews would be held
next Monday, March 7.
It was understood, also, that Governor Millst
memorandum of March 4, 1960, would be circulated to the other members
Of
the Board.
During the foregoing discussion Messrs. Molony and Fauver
returned to the room, and at its conclusion Mr. Thomas withdrew.
Department store statistics.
At Chairman Martints request,
*. Noyes outlined the setting in which representatives of the National
Retail Merchants Association (forinerly the National Retail Dry Goods
iteac3ciation) were to meet with the members of the Board on Monday
afternoon, March 7.
He first described how the requested $400,000
sPProPriation for fiscal 1961 to enable the Census Bureau to assume
8
re,
vonsibility for the collection and publication of department store
statistics, as a part of its retail sales statistical program, had been
reduced somewhat by the House Appropriations Committee; the Bureau of
the Budget and the Department of Commerce sought restoration of the
"tire $400,000 by the Senate Finance Committee; in the meantime
13arties within the National Retail Merchants Association initiated a
t
314/60
-15-
camPaign of protest against transfer of the department store program
from the Federal Reserve; and the Senate Committee deleted the requested
appropriation in entirety, with the suggestion that the program be
given further consideration and that funds might be sought in a
supplemental budget or in the budget for a later fiscal year.
Mr. Noyes said that two principal issues had been raised by the
department stores.
First, it was alleged that the close and confidential
relationships between the Federal Reserve and the department stores
c°111d not be duplicated if the statistical program were taken over by
the Census
Bureau.
Second, and more fundamental, the program of the
Census Bureau did not contemplate continuation of the so-called "city
departmental,, breakdown, which furnishes a detailed breakdown of sales
by
departments for over 100 cities and metropolitan areas.
For reasons
*ich Mr. Noyes explained, this series was suspect from the standpoint
°f statistical validity, and its discontinuation had been recommended
earlier by the System Research Advisory Committee.
In reply to questions, Messrs. Young and Noyes said that the
city departmental breakdown was of little or no significant value to
the Federal Reserve System from the standpoint of formulation of
etarY Policy, although it was valuable to the department stores as
a check on their operations from a competitive standpoint. If the
Pederal Reserve were to continue the department store series and
endeavor to improve its statistical validity, the expense involved
906
3/4/60
-16
would be considerable.
Moreover, any substantial improvement of the
departmental
series would require the participation of certain large
chains not now participating, and it was not clear that their cooperation could be obtained.
It was the suggestion of Messrs. Young and Noyes that the
Board, in meeting with the representatives of the National Retail
Merchants Association, make clear that the view of the Federal Reserve
SYstem favoring transfer of the department store series to the Census
Bureau had not been changed simply because of the failure of the
Bureau to obtain the necessary appropriation for fiscal 1961.
The meeting then adjourned.
•
(
Secre
„.04olsoy'r-,
BOARD OF GOVERNORS
OF THE
3,
,.c).
Item No. 1
3/4/60
FEDERAL RESERVE SYSTEM
WAS HI NC3TON
'
.444110',, Y
,0,,,.4')
OFFICE OF THE CHAIRMAN
March 4, 1960.
S. Clark Beise, President,
Joank of
America National Trust and
Savings Association,
300
Montgomery Street,
San F
rancisco., California.
Dear Clark:
When you met with the Board Members on January 29 you asked
for
„ a cony of the "Form for Analyzing Bank Capital” mentioned during the
sslon. You will recall that this analysis, which was prepared for
nab
e_ Y the Federal Reserve Bank of San Francisco, showed that at the last
had 7otal by a National Bank Examiner as of July 31, 1959, your Bank
4GeL
Capital Requirement" of 11033,507,000, whereas "Actual Cap.,
th,' was 426,507,000, or 70.3 per cent of the "Requirement." A copy of
analYsis is enclosed.
of _ ers You also asked if you could be furnished a similar analysis as
De Joer
forrie.
31, 1956. Although the information required to complete this
raade is not available from the regular call report, an attempt has been
to prepare an analysis using information where pertinent from the
last
" Pious examination as of October 31, 1956. Accordingly, such analysic, arid
an analysis as of the October 31, 1956 examination date, are also
ec1(13;tsed for such
value as they may have. Perhaps from your internal re'You can fill out any "gaps" in the December 1956 figures.
IlethodIt is realized, of course, that neither this Form nor any other
of a b of
can give a simple answer to the question of the adequacy
does ,ank i s capital, since many factors are involved. However, the Form
dLiffe'ake account of certain differences in the circumstances surrounding
ent banks, and also makes provision for further adjustments when
yv 4.ate. The
Board's approval of the acquisition by Bank of America,
Pri.11,3 of the stock of Banca d'America e d'Italia (BAI) was granted in
call;i13-Le in September 1956 and finally in September 1957. It may be rethat the approval was conditioned upon an increase in capital by
,
corpn°fAmerica, NewYork, equal to the cost of BAI. The fact that the Edge
°f oWlia`'i°n was adequately capitalized to enable it to acquire BAI does not,
adeau,14:se, necessarily mean that the national bank was then, or is now,
br "el,Y capitslimed to justify the establishment of additional foreign
arlehes.
With all good wishes, I am
Sincerely yours,
(Signed) Wm. 1,:cC.
osurea
artin, Jr.
McC. Martin, Jr.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
Item No. 2
3/4/(7,.0
ADDRESS OFFICIAL. CORRESPONDENCE
TO THE BOARD
idarch 4, 1960.
Mr. William H. Braun, Jr.,
Secretary,
Federal Reserve Bank of New York,
New York 45, New. Ybrko
Dear Mr. Braun:.
Thank you for your letter of February 19, 1960, con—
cerning the extension of leave of absence without pay granted to
Mr. Lawrence S. Ritter, enabling him to continue his service with
dC
izmittee on Economic Development's Commission on Money and
t
It is understood that Mr. Ritter's leave has been
extended at the request of the Staff Director of the Commission
and that the extended leave will terminate on or about September
1960.
The Board of Governors interposes no objection to the
Tcteneion of the leave without pay arrangement with respect to
, Ritter for the period specified in your letter.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
2,
9t)!
BOARD OF GOVERNORS
OF THE
Item No. 3 •
FEDERAL RESERVE SYSTEM
3/4/60
WASHINGTON 25. D. C.
AOOREBB OFFICIAL CORRESPOND
TO THE 130A140
444**
March 4, 1960.
The Honorable Jesse P. Wolcott, Chairman,
Federal Deposit Insurance Corporation,
Washington 25, D. C.
Dear Mr. Wolcott:
Reference is made to your letter of February 19,
1960, concerning the desire of Kentucky-Farmers Bank of
Catlettsburg, Catlettsburg, Kentucky, to continue as an insured bank following its withdrawal from membership in the
Federal Reserve System.
No corrective programs have been urged upon the
bank or agreed to by it which the Board of Governors be should be incorporated as conditions to the continuance of deposit insurance.
Very truly yours,
(Signed) Kennethlt. Kenyon
Kenneth A. Kenyon,
Assistant Secretary*
CC
BOARD OF GOVERNORS
OF THE
Item No. 4
FEDERAL RESERVE SYSTEM
3/4/60
WASHINGTON 25. D. C.
'4.0a
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
March 4, 1960.
Board of Directors,
Denmark State Bank,
Denmark, Wisconsin.
Gentlemen:
The Federal Reserve Bank of Chicago has forwarded to
4t.he Board of Governors your letter dated February 10, 1960,
:Jogether with the accompanyin resolutions signifying your
±ntention to withdraw from membership in the Federal Reserve
System and requesting waiver of the six months' notice of such
la
thdrawal.
In accordance with your request, the Board of
Governors waives the requirement of six months' notice of
Upon surrender to the Federal Reserve Bank of
lica(:;0 of the Federal Reserve Bank stock issued to your
J-nstitution, such stock will be canceled and appropriate
!efund will be made thereon. Under the provisions of
6eotion 10(c) of the Board's Regulation H, your institution
maY accomplish termination of its membership at any time
eight months from the date the notice of intention to
withdraw from membership was given.
It is requested that the certificate of membership
be returned to the Federal Reserve Bank of Chicago.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
03,00***,
OF THE
0.4 OW COVI.4
Item No.
FEDERAL RESERVE SYSTEM
t
'
zz,Ing 1, *
0*
0
UM
"
,..,,
0
'T "t;t4.1.Nut
5
3/4/60
.*
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
March 4) 1960.
The Honorable Jesse P. Wolcott,
Chairman,
Federal Deposit Insurance Corporation,
Washington 25, D. C.
Dear Mi, Wolcott:
Reference is made to your letter of February 19,
1960, concerning the application of Commercial State Bank
of El Campo, El Campo, Texas, for continuance of deposit
insurance after withdrawal from membership in the Federal
Reserve System.
No corrective programs that the Board of
Governors believes should be incorporated as conditions
to the continuance of deposit insurance have been urged
upon or agreed to by the bank.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No.
FEDERAL RESERVE SYSTEM
6
3/4/60
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
March
4, 1960.
Board of Directors,
City National Bank of Beverly Hills,
Beverly Hills, California.
Gentlemen:
Pursuant to your request submitted through the Federal
Reserve Bank of San Francisco, the Board of Governors, acting
under the provisions of Section 19 of the Federal Reserve Act,
grants permission to the City National Bank of Beverly Hills to
continue to maintain the same reserves against deposits as are
required to be maintained by banks located outside of central
.Feserve and reserve cities, upon the opening of its additional
branch in the city of Los Angeles.
Your attention is called to the fact that such pertaissi-on is
subject to revocation by the Board of Governors.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
440****
q't 401 COI,*4,
OF THE
*
Item No. 7
FEDERAL RESERVE SYSTEM
\
P
1
411
1 11
Cd4
3/4/60
WASHINGTON 25. D. C.
fa\
1
r4
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
°*4 1°11°1V
1,Arch 4, 19C0.,
Board of Directors,
Farmers and Merchants Bank,
Hannibal, Missouri.
Gentlemen:
Pursuant to your request submitted through
the Federal Reserve Bank of St. Louis, the Board of
Governors of the Federal Reserve System approves the
establishment by the Farmers and Merchants Bank,
Hannibal, Missouri, of a drive-in branch at 218
Broadway in Hannibal, Missouri, provided the branch
is established within nine months from the date of
this letter. The Board of Governors of the Federal
Reserve System also approves, under the provisions
of Section 24A of the Federal Reserve Act, an additional investment in bank premises of $35,000 for
the purpose of construction of quarters to house the
branch.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
4
001 SOkk.;
10.
OF THE
t.
A*
a
Item No. 8
FEDERAL RESERVE SYSTEM
3/4/60
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
Atit
tr,
zatv- trt,
'tto4**4
'
March 4, 1960.
Board of Directors,
Bar Harbor Banking and
Trust Company,
Bar Harbor, Maine.
Gentlemen:
Pursuant to your request submitted through the
Federal Reserve Bank of Boston, the Board of Governors of
(the Federal
Reserve System approves the establishment of a
branch in Blue Hill, Hancock County, Maine, by Bar Harbor
B,Ilking and Trust Company, provided the branch is established
-'-'.hi six months from the date of this letter.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
44iititt**4_
e,pou'lz014.°4
OF THE
Item No. 9
3/4/60
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
March 4, 1960.
The
First National City Bank of New York,
55
New YorkStreet,
15, New York,
Gentlemen
:
In accordance with the request contained in your letter
Of
'
or m llarY 26, 1960, transmitted through the Federal Reserve Bank
G
1 York and on the basis of information furnished, the Board of
s:_v-_,ernors
approves a change in location of your branch in the
i.0"111:'1.11:ce area of
the City of San Juan, Puerto Rico, from its present
°11 at 306 Avenida Condado to a new building to be constructed
e corner of Avenida Roberto H. Todd and del Carmen Street.
T
Please advise the Board of Governors in writing, through
the pc,.
to ti:deral Reserve Bank of New York, when the branch is removed
the E5 new location and opened for business. It is understood that
appr-ew location approved will not be changed without the prior
°Ira of the Board of Governors.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
91
BOARD OF GOVERNORS
47.4,,,
cow zci,
OF THE
Item ,No. 10
3/4/60
FEDERAL RESERVE SYSTEM
31444t
*
WASHINGTON 25, D. C.
11,
ADDRESS
orrictAL
CORRESPONDENCE
TO THE BOARD
March 40 1960.
Board of Directors,
The Central
Bank Company,
Lorain, Ohio.
G
entlemen:
This refers to your request for permission, under
aPPlicable provisions of your condition of membership numbered
1, to exercise
fiduciary powers.
Following consideration of the information submitted,
Board of Governors of the Federal Reserve System grants
!
,
3erplission to The Central Bank Company to exercise the fiduciary
!:°11er8 now or hereafter authorized by its articles of incorporation,
and the
laws of the State of Ohio.
the
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
917
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
't *
*
WASHINGTON 25. D. C.
%4
14
4
Item No. 11
3/4160
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
4tzktl, vg%\t'
1.1arch 4, 19LO.
Board of
Directors,
Peoples Bank & Trust
Co.,
Montgomery, Alabama.
G
entlemen:
The Board of Governors of the Federal Reserve System approves the
application of Peoples Bank & Trust Co., Montgomery,
Sl
tc,abarr
for stock in the Federal Reserve Bank of Atlanta, subject
- the
numbered conditions hereinafter set forth:
1.
2.
Such bank at all times 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 bink shall not cause or permit any change to be
made in the general character of its business or in
the scope of the corporate powers exercised by it at
the Lime of admission to membership.
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.
Particui In connection with the foregoing conditions of membership,
.ar attention is
called to the provisions of the Board's
the patl°n H regarding membership of State banking insitutions in
thereof
Reserve System, with especial reference to Section 7
eof• A copy of the regulation is enclosed.
°PeratThe Board of Governors also approves
the retention and
'
lon of the present branch of Peoples
Bank & Trust Co., now
g °Perated at 82-84 Commerce Street, Montgomery,
Alabama.
bank
It Is
is noted that under its articles of incorporation the
fiduciary powers but that at the present time is
desire
such powers. Should the bank at any future time
any e to broaden the scope of
its corporate activities or exercise
Po
llers not exercised at the time of admission to membership it
not e'aY
BOARD
OF GOVERNORS
Peoples Dank & Trust
Co.
OF THE FEDERAL RESERVE SYSTEM
-2-
Will be necessar
y, under condition of membership numbered 1, to
Obtain permission
of the Board of Governors.
If at any time a change in or amendment to the
bank's
charter is made, the
bank
shou
ld
advi
se
Fede
the
ral
Rese
rve
Bank,
.11rnishing
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 memb
er 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
1.1ch resolution
should be filed with the Federal Reserve Bank. Arrangements will thereupon be made
to accept payment for an appropriate amount
of Federal Reserve Bank stock, to accept the deposit of
the
required reserve balance, and to issu
e the appropriate amount of
Federal Reserve
Bank stock to the bank.
The time within which admission to membersh
Reserve
ip in the Federal
Syst
tel. 30 days em in the manner described may be accomplished is limited
from the date of this letter, unless the bank appl
ies to
the Board and
obtains an extension of time. When the Board is advised
„at all of the requirements have
been complied with and that the apfopriate amount of
Federal Reserve Bank stock has been issued to the
10:2k, the Board
will forward to the bank a formal certificate of memrshiP in the Fede
ral Reserve System.
t
The Board of Governors sincerely hope
s that you will find
Membersh.
Res
1P
in the System beneficial and your relations with
R
the
b_eserve Bane,
pleasant. The officers of the Federal Reserve Dank will
R!,glad to
assist you in establishing your relationships with
0;aeral
the
Reserve System and at any time to discuss with represen
tatives
t, Y°ur bank means for makingth
e services of the System most useful
- You.
Very truly yours,
(rAimn,l) Kenneth A. Kenyon
Pincioaure
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 12
3/4/60
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE 80ARO
AL KS%
444***
March 4, 1960.
L
Board of Directors,
NCLachlen Banking Corporation,
Tenth 84 G Streets, N. W•p
Washington 1, D. C.
Gentlemen:
Pursuant to your request submitted through the Federal
Reserve Bank of Richmond, the Board of Governors, acting under
the provisions of Section 19 of the Federal Reserve Act, grants
Permission to the McLachlan Banking Corporation to maintain the
same reserves against deposits as are required to be maintained
bY banks located outside of central reserve and reserve cities,
effective 'with the first biweekly reserve computation period
beginning after the date of this letter.
Your attention is called to the fact that such per°lesion is subject to revocation by the Board of Governors.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 13
3/4/60
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
arch 4, 19CO.
Board of Directors,
Michigan Avenue National Bank of Chicago,
Chicago, Illinois.
Gentlemen:
Pursuant to your request submitted through the Federal Reserve Bank of Chicago, the Board of Governors, acting
Wider the provisions of Section 19 of the Federal Reserve Act,
grants permission to the Michigan Avenue National Bank of
Chicago to maintain the same reserves against deposits as are
required to be maintained by bnnIcs located outside of central
reserve and reserve cities, effective with the first biweekly
reserve computation period beginning after the date of this
1etter.
Your attention is called to the fact that such per11118810n is subject to revocation by the Board of Governors.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
4,•{0***44
OF THE
UP
f?"
Item No. 14
3/4/60
FEDERAL RESERVE SYSTEM
•
,1
,
-7:`:•;
*
IA 15.
n"
WASHINGTON 25. D. C.
4
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
ttft'At
.a.tP
0***
March 4, 1960.
Board of Directors,
Mid-America National Bank of Chicago,
Chicago, Illinois.
Gentlemen:
Pursuant to your request submitted through the Federal Reserve Bank of Chicago, the Board of Governors, acting
under the provisions of Section 19 of the Federal Reserve Act,
rats permission to the Mid-America National Bank of Chicago
„c_o maintain the same reserves against deposits as are required
60 be
maintained by banks located outside of central reserve
aad reserve cities, effective with the first biweekly reserve
computation period beginning after the date of this letter.
Your attention is called to the fact that such perIllission is subject to revocation by the Board of Governors.
Very truly yours,
4.
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 15
3/4/60
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
March
4, 19W.
Board of Directors,
Lincoln National Bank,
Chicago, Illinois.
Gentlemen:
Pursuant to your request submitted through the Federal
Re
-- - Bank of ChicagO, the Board of Governors, acting under
+1,servA
provisions of Section 19 of the Federal Reserve Act, grants
15ellatseion to the Lincoln National Bank to maintain the same
rserves against deposits as are required to be maintained by
Inks located outside of central reserve and reserve cities,
17fentive with the first biweekly reserve computation period
egtnning after the date of this letter.
2
Your attention is called to the fact that such pertissi--on
is subject to revocation by the Board of Governors.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 16
3/4/60
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
AOORE813 OrriciAL CoRREspONOENCE
TO THE BOARD
Llarch 4, 19W.
Board of Directors,
Penn Square National Bank of Oklahoma City,
Oklahoma City, Oklahoma.
Gentlemen:
Pursuant to your request submitted through the Federal
Reserve Bank of Kansas City, the Board of Governors, acting
under the provisions of Section 19 of the Federal Reserve Act,
,EFants permission to the Penn Square National Bank of Oklahoma
'itY to maintain the same reserves against deposits as are
:ev_red to be maintained by banks located outside of central
eserve and reserve cities, effective as of the date it opened
for business.
1
Your attention is called to the fact that such permisErt-on is
subject to revocation by the Board of Governors.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 17
3/4/60
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRCBS
orrtctm-
CORRIEBPONDENCIC
TO THE BOARD
Mar
41 1960.
Board of Directors,
Security State Bank,
Sheldon, Iowa.
G
entlemen:
The Federal Reserve Bank of Chicago has forwarded to
the.
Board of Governors your letter dated December 121 15591 and
c°Ples of resolutions signifying your intention to withdraw from
membership in the Federal Reserve System and to request waiver
the six months' notice of such withdrawal.
In accordance with your request, the Board of Governors
./a-i-ves the requirement of six months' notice of withdrawal. Upon
,
s,urrender to the Federal Reserve Bank of Chicago of the Federal
rceserve Bank stock issued to your institution, such stock will be
canceled and appropriate refund will be made thereon. Under the
1?r°visions of Section 10(c) of the Board's Regulation HI your
,t1:Istitution may accomplish termination of its membership at any
tIme.within eight months from the date the notice of intention
wIthdraw from membership was given.
It is requested that the certificate of membership be
returned to the Federal Reserve Bank of Chicago.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
92
TELEGRAM
BOARD OF GOVERNORS
Item No.
OF THE
FEDERAL RESERVE SYSTEM
3/4/60
WASHINGTON
March
4, 1960.
Walter J. Mahoney,
Temporary President of the Senate,
Albany, New, York.
In reply to your wire of February 29 requesting my
opinion on the desirability or undesirability of permitting
foreign banks to establish branches in New York State, I
favor permitting foreign commercial banks to establish such
branches under appropriate regulation and supervision.
Wm. McC. Martin, Jr.,
Chairman,
Board of Governors of the
Federal Reserve System.
(Signed) Wm. McC. Martin, Jr.
, app
tiiitvisiNess
RATes
%viA t
"""°F GOV
ERNORS OF THE FEDERAL RESERVE SYSTEM
18
@FedFRASER