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Minutes for
To:
Members of the Board
From:
Office Of the Secretary
May_10, 1963
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. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
Gov. King
Gov. Mitchell
('
Minutes of the Board of Governors of the Federal Reserve
SYstem on Friday, May 10, 1963.
The Board met in the Board Room
at 10:00
a.m.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Martin, Chairman
Balderston, Vice Chairman
Mills
Robertson
Shepardson
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Sherman, Secretary
Kenyon, Assistant Secretary
Fauver, Assistant to the Board
Noyes, Director, Division of Research
and Statistics
Koch, Associate Director, Division of
Research and Statistics
Holland, Adviser, Division of Research
and Statistics
Furth, Adviser, Division of International
Finance
Hersey, Adviser, Division of International
Finance
Katz, Associate Adviser, Division of
International Finance
Spencer, General Assistant, Office of
the Secretary
Eckert, Chief, Banking Section, Division
of Research and Statistics
Yager, Chief, Government Finance Section,
Division of Research and Statistics
Goldstein, Economist, Division of
International Finance
Money market review.
Mr. Yager presented a report on the
41°11eY market, in which connection he made reference to a table that
had been distributed showing monetary developments in the five weeks
elided May
8, 1963. Mr. Koch then described recent developments with
l'espect to bank credit, the money supply, and related matters, at one
Doint referring to the turnover rates on regular deposits at mutual
5/10/63
-2-
savings banks and share capital at savings and loan associations, as
shown in a table that had been distributed at the beginning of the meeting.
Mr- Goldstein reported on foreign exchange developments.
Following these reports, all members of the staff except Messrs.
Sherman/ Kenyon, Fauver, and Spencer withdrew from the meeting and the
f°110w1.ng entered the room:
Mr. Hexter, Assistant General Counsel
Mr. Leavitt, Assistant Director, Division of Examinations
Mr. Poundstone, Review Examiner, Division of Examinations
Discount rates.
The establishment without change by the
l'ederal Reserve Banks of Cleveland, Richmond, Atlanta, Chicago, St. Louis,
Minneapolis, Kansas City, and Dallas on May 9, 1963, of the rates on
discounts and advances in their existing schedules was approved
Ilaan:Unously, with the understanding that appropriate advice would be
sent to those Banks.
Circulated item.
The following item, a copy of which is
ettached to these minutes as Item No. 1, was approved unanimously:
etter to International Bank of Commerce, Seattle,
n shington, approving an amendment to its articles
:
48sociation and transmitting a final permit to
-ommence business.
Mr. Poundstone withdrew from the meeting at this point.
Report on competitive factors (Glens Falls-Hudson Falls, New York).
Mere had been distributed a draft of report to the Comptroller of the
CtIrrency on the competitive factors involved in the proposed consolidation
cn The First National Bank of Hudson Falls, Hudson Falls, New York, and
First National Bank of Glens Falls, Glens Falls, New York.
5/10/63
-3A change in the wording of the conclusion having been agreed
upon, the report was approved unanimously for transmittal to the
Comptroller in a form containing the following conclusion:
The proposed consolidation would eliminate the substantial
amount of competition between the applicant banks and reduce the
alternative banking sources in the greater Glens Falls area
from three banks to two banks. The proposal would further
increase the concentration of banking resources in the Glens
Falls area with strongly adverse competitive effects.
Report on competitive factors (Smethport-Kane, Pennsylvania).
There had been distributed a draft of report to the Federal Deposit
Insurance Corporation on the competitive factors involved in the
Proposed Purchase of assets and assumption of liabilities of Kane
13a4k and Trust Company, Kane, Pennsylvania, by Hamlin Bank and Trust
C°mPany, Smethport, Pennsylvania.
After discussion the report, in which the conclusion read as
follows, was approved unanimously for transmittal to the Corporation:
The proposed purchase of assets and assumption of liabilities
of Kane Bank and Trust Company, Kane, Pennsylvania, by Hamlin
Bank and Trust Company, Smethport, Pennsylvania, would not have
adverse effects on other banks in McKean County. While the
proposal would eliminate the nominal amount of competition existing
between the participants, it might stimulate competition between
the continuing bank and the much larger Warren County bank which
Operates a branch in Kane.
The meeting then adjourned.
Secretary's Notes: The requirements contemplated
by the Board's action on April 24, 1963, in
approving the issuance of a preliminary permit
to Manufacturers-Detroit International Corporation, Detroit, Michigan, having been completed,
a letter was sent to that corporation on
May 10, 1963, transmitting a final permit to
commence business.
4r),
s.
5/10/63
Pursuant to recommendations contained in
memoranda from appropriate individuals
concerned, Governor Shepardson today
approved on behalf of the Board the following actions relating to the Board's staff:
Appointments
effective date of entrance upon duty
Name and title
Division
Basic annual salary
Office of the Secretary
Prances K. Reames, Records Clerk
$4,530
Research and Statistics
Peter Berman, Summer Research Assistant
Eleanor Sue Goetz, Economist
!arY Frances Green, Statistical Clerk
william N. Huff, Economist
Judith E. Locknane, Clerk
5,540
6,675
14-, 390
6,675
4,250
Personnel Administration
PhYllis Ann Carson Clerk-Stenographer
Cara'en 110 Feliciano Cler
enographer
Clerk-Stenographer
Doroth
-Y Ann Gheen, Clerk-Stenographer
4,110
4,110
4,030
Administrative Services
Allen E. Simmons, Messenger
3,245
incnErease
titi_Louis Zeller, from $5,725 to $6,675 per annum, with a change in
from Research Assistant (Data Processing) to Digital Computer
`""grammer, Division of Data Processing, effective May 12, 1963.
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BOARD OF GOVERNORS
Item No. 1
5/10/63
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
e._,‘
,
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it'll ,
RESt`.....•.
TO THE BOARD
May 10, 1963
In
ternational Bank of Commerce,
1100 Second Avenue,
Seattle, Washington.
G
entlemen:
The Board of Governors has received a certificate of
President, Secretary, and three directors of Commerce Interrational Banking Corporation, dated April 5, 1963, certifying the
fltormatien required by Section 211.3(c) of Regulation K as prerequisite to the issuance of a final permit to commence
business.
the
As requested in your letter of April 8, 1963, and
Pursuant to Section 211.3(d) of Regulation K, the Board of Governors
aJProves the amendment to Article First of the Articles of Association of
the Corporation, which changes the name of the Corporation
6° "International
Bank of Commerce."
There is enclosed herewith a final permit of the Board
of Governors granting to International Bank of Commerce authority
to co
mmence business as a corporation organized under the provisions
of
Section 25(a) of the Federal Reserve Act.
Please advise the Board of Governors, through the Federal
Res —
bee
Bank of San Francisco, when the Corporation commences
"slness.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
trIclosure
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON
May 10, 1963
Permit to Begin Business
WHEREAS, the Board of Governors of the Federal
Reserve System on the twenty-eighth day of February,
Nineteen Hundred and Sixty Three, approved the Articles
Of Association and Organization Certificate of International
Bank of Commerce in accordance with the terms of Section 25(a)
Of the Federal Reserve Act; and
WHEREAS, by satisfactory evidence presented to
the Board of Governors of the Federal Reserve System, it
appears that International Bank of Commerce has complied
with all of the provisions of the statutes of the United
States required to be complied with before a corporation
shall be authorized to commence business as a corporation
organized under Section 25(a) of the Federal Reserve Act;
NOW, THEREFORE, it is hereby certified that
International Bank of Commerce is authorized to commence
business as a corporation organized and operating under
the provisions of Section 25(a) of the Federal Reserve
Act and the regulations of the Board of Governors of the
Federal Reserve System issued in accordance therewith.
IN WITNESS WHEREOF, I have hereunto set my
hand and caused the seal of the Board of Governors of
the Federal Reserve System to be affixed on the day and
Year first above written.
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
(SEAL)
@FedFRASER