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Minutes for
To:
Members of the Board
From:
Office of the Secretary
May 15, 1959
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, if you
were present at the meeting, please initial in
column A below to indicate that you approve the
minutes. If you were not present, please initial
in column B below to indicate that you have seen
the minutes.
A
chin. Martin
Gov. Szymczak
Gov. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
Gov. King
Minutes of the Board of Governors of the Federal Reserve System
on Friday, May 15, 1959.
PRESENT:
Mr.
Mr.
Mr.
Mr.
The Board met in the Board Room at 10:00 a.m.
Balderston, Vice Chairman
Szymczak
Mills
Robertson
Mr. Sherman, Secretary
Mr. Kenyon, Assistant Secretary
Mr. Johnson, Director, Division of
Personnel Administration
Mr. Hackley, General Counsel
Mr. Boothe, Administrator, Office of
Defense Loans
Mr. Farrell, Director, Division of Bank
Operations
Mr. Sprecher, Assistant Director, Division of
Personnel Administration
Mr. Nelson, Assistant Director, Division of
Examinations
Mr. Benner, Assistant Director, Division of
Examinations
Mr. Hill, Assistant to the Secretary
Mr. Poundstone, Federal Reserve Examiner,
Division of Examinations
Discount rates.
The establishment without change by the
Federal Reserve Bank of San Francisco on May 13, and by the Federal
Reserve Banks of New York, Cleveland, Richmond, Chicago, St. Louis,
Minneapolis, and Dallas on May 14, 1959, of the rates on discounts
end advances in their existing schedules was approved unanimously,
with the understanding that appropriate advice would be sent to those
13anks,
Items circulated to the Board.
The following items, which had
been circulated to the Board and copies of which are attached to these
nlinutes under the respective item numbers indicated, were approved
Unanimously:
5/15/59
-2Item No.
Letter to the Security Trust Company, Lynn,
Massachusetts, approving the establishment of
a branch at 500-502 Eastern Avenue. (For transmittal through the Federal Reserve Bank of Boston)
Letter to The First National City Bank of New York,
2
New York City, approving the establishment of a branch
in Cordoba, Argentina. (For transmittal through the
Federal Reserve Bank of New York)
Letter to The First National City Bank of New York,
le14 York City, approving a change in the location of
its branch in Jeddah, Saudi Arabia. (For transmittal
through the Federal Reserve Bank of New York)
3
Letter to the Sanca.set Trust Company, Somerset, Pennsylvania, approving the establishment of a branch at 420
4orth Center Avenue. (For transmittal through the
Federal Reserve Bank of Cleveland)
L.
Letter to The Algonac Savings Bank, Algonac, Michigan,
5
approving the establishment of a branch at 8900 Dixie
12ghwaY in Fair Haven, Michigan. (For transmittal
1,
vurough the Federal Reserve Bank of Chicago)
1
Letter to The American National Bank of Sapulpa,
SaPulpa, Oklahoma, approving its application for
fiduciary powers. (For transmittal through the Federal
Reserve Bank of Kansas City)
6
Letter to The First Bank of Brighton, Brighton, Colorado,
1 rpanting an extension of time to accomplish termination
t_
,
its membership in the Federal Reserve System. (For
l'ansmittal through the Federal Reserve Bank of Kansas
City)
7
1,1,etter to the Comptroller of the Currency recommending
Icavorably with regard to the application of The First
'avIngs Bank and Trust Company, Ravenna, Ohio, to convert
irto a national bank. (With a copy to the Federal Reserve
ank of Cleveland)
8
1.!etter to the Comptroller of the Currency recommending
13.avorab1y with respect to an application submitted by W. N.
Rlanton and associates to organize a national bank at
°Ilston, Texas. (With a copy to the Federal Reserve Bank
of Dallas)
5/15/59
-3Item No.
Letter to the Comptroller of the Currency recommending
unfavorably with regard to an application to organize
a national bank in the Robindell Shopping Center, Houston,
Texas. (With a copy to the Federal Reserve Bank of Dallas)
10
Letter to the Department of State acknowledging a request
for review of certain provisions of Regulation K.
11
Letter to the Federal Reserve Bank of St. Louis approving
adjustments in the employees' salary structures for the
head office and Louisville Branch.
12
Letter to the Federal Reserve Bank of Chicago approving
the reemployment of an examiner for one year from October 1,
1959, the date of his retirement.
13
Application to organize a national bank at Killeen, Texas (Item
110. 14),
The Comptroller of the Currency had requested the Board's
re
commendation with respect to an application to establish a national
1)ank at Killeen, Texas.
On the basis of a field investigation, the
P?41eral Reserve Bank of Dpllas suggested an unfavorable recommendation,
and the Division of Examinations concurred.
Accordingly, there had
been circulated to the Board a draft of letter to the Comptroller
Yhich would state that the Board did not feel justified in recomillending approval of the application.
This would be supported by the
statement
that it did not appear that the proposed bank could obtain
a sufficient volume of business to assure profitable operations
'
/41thout seriously hurting the existing bank in Killeen, which was
rePorted
to be furnishing reasonably satisfactory services to the
co
mmunity.
-4-
5/15/59
Governor Robertson expressed the opinion that a favorable
recommendation would be warranted in order to provide banking
competition in a community of 22,000 located near a large military
establishment.
While recognizing that the economy of the area was
not such as to generate the amount of banking business that might be
expected in other communities of similar size, he noted that some
banking business allegedly was going out of the community, the
°rganizers of the proposed bank seemed representative, and the
existing bank had a relatively high scale of service charges.
These and related factors led him to feel that a second bank might
be able to develop a substantial amount of new business.
The other members of the Board agreed that this was a close
c4se. However, it was felt that the relatively modest financial
Position of the organizers and the questionable earnings prospects
Of the proposed bank created doubt as to whether the risks involved
in attempting to establish the institution could be justified.
Accordingly, the proposed letter to the Comptroller of the
ClIrrencY, a copy of which is attached as Item No. 14, was approved,
Governor Robertson voting "no", with the understanding that a copy
vould be sent to the Federal Reserve Bank of Dallas.
Messrs. Benner and Poundstone then withdrew from the meeting.
Joint meeting of Board and Presidents.
Governor Balderston
stated that Mr. Erickson, Chairman of the Presidents' Conference, had
5/15/59
-5-
requested a joint meeting of the Board and the Presidents on May 261
1959, for the purpose of discussing a proposed major medical insurance
Program at the Reserve Banks.
During a brief discussion, Mr. Johnson reviewed the status of
consideration of the plan and referred to differences of opinion
*within the Presidents' Conference concerning certain aspects of the
Proposal.
It was requested that prior to the joint meeting the Personnel
Division submit for the Board's information material concerning the
Plan recommended by the Conference Subcommittee on Personnel and the
points on which a difference of opinion was understood to exist.
It
'as further requested that the Personnel Division submit comparative
information on the Board's major medical insurance program, the Reserve
114nk proposal, a plan for Federal employees recently submitted for
Congressional consideration, and plans currently favored by industry.
The Secretary then was requested to complete arrangements for
4 joint meeting with the Presidents at 2:00 p.m. on May 261 1959.
Messrs. Johnson and Sprecher then withdrew from the meeting.
V-loan matter.
Attention was drawn to a letter addressed to
ChEtirman Martin under date of May 4, 1959, by Mr. Eugene B. Crowe of
St
'Louis, Missouri, who made certain complaints of a nonspecific
44ture regarding the handling of a V-loan by the Federal Reserve Bank
c3f St. Louis, and charged that a letter he received over the signature
°f Chairman Martin dated Aim 241 19580 misrepresented the scope of the
-6-
5/15/59
Board's authority with respect to the V-loan program. It was explained
that in the period since the initial exchange of correspondence with
Chairman Martin, Mr. Crowe had written a series of letters and that
replies were made by Mr. Boothe, who endeavored to make clear the role
Of the Board and the Federal Reserve Banks under the V-loan program.
e
From discussion, it developed that Mr. Crowe, a former employe
of the Federal Reserve Bank of St. Louis, had made certain charges
regarding the mishandling of V-loan activities at the Bank, that the
nlanagement of the Bank had rejected these complaints as unfounded, and
that the purpose of Mr. Crowe's correspondence with the Board appeared
to be to obtain an opportunity to discuss his complaints with the
Board.
lar
Following comments by Mr. Boothe on the history of the particu
V-loen to which W. Crowe appeared to have reference, consideration was
other
gillen to a draft of proposed reply to Mr. Crowe, which, among
things, would invite him to submit any specific charges in writing for
the Board's consideration.
would
Governor Robertson then suggested that other alternatives
be either (1) to ignore Mr. Crowe's most recent letter and terminate
the correspondence, or (2) to make certain the Board's record was complete
by offering Mr. Crowe an opportunity to present any information he might
5/15/59
-7-
desire to a Board representative who would be seat to St. Louis for
the Purpose.
Following the meeting, the representative would report
back to the Board.
Governor Robertson indicated that, in order to
assure a clear and complete record, he would be inclined toward the
last-mentioned alternative.
After further discussion of the various possibilities, it
vaS agreed that a letter along the lines suggested by Governor
Robertson would be sent to Mt. Crowe, with a copy to the Federal
Reserve Bank of St. Louis.
The meeting then adjourned.
Secretary's Notes: A letter to the Federal
Reserve Bank of Richmond advising of certain
procedural changes affecting the disbursing
functions of the Office of the Controller was
sent today pursuant to Governor Shepardson's
approval of the procedural changes on April 131
1959. A copy of the letter is attached as
Item No. 15.
On April 30, 1959, the Board approved arrangements under which Earl C. Hald, Economist in
the Division of Research and Statistics, would
be permitted to accept a position as Economic
Adviser under the United Nations Technical
Assistance Program to Libya for one year
beginning on or about „Tune 1, 1959, with the
understanding that the Division of Personnel
Administration would work out the details
with the Office of Personnel of the United
Nations on either a leave of absence or a
reimbursement basis. These details having
been worked out and approved by Governor
Shepardson, the letter of which a copy is
attached as Item No. 16 was sent to the
United Nations today.
5/15/59
-8Pursuant to recommendations contained in
memoranda from appropriate individuals
concerned, Governor Robertson, acting in
the absence of Governor Shepardson,approved
on behalf of the Board on May 14, 1959, the
following items affecting the Board's staff:
_4522,21p.ImaL2
Norman J. Gharrity as Research Assistant, Division of Research
and Statistics, with basic annual salary at the rate of *41980, effective
the date he assumes his duties.
. Laura Jane Smith Wilson as Clerk, Division of International Finance,
with basic annual salary at the rate of3,755, effective the date she
assumes her duties.
Transfer and salary increase
SYlvia D. Louderback, from the position of Clerk-Stenographer in
the Division of Research and Statistics to the position of Special
Assistant
Federal Reserve Examiner in the Division of Examinations,
withan increase in her basic annual salary from 4‘; ,,3,945 to *4,190,
effective July 26, 1959, for a period of approximately one year.
Acceptance of resignation
Delores H. Sargent, Clerk-Stenographer, Division of Personnel
Aaministration, effective May 22, 1959.
Acting in the absence of Governor Shepardson,
Governor Robertson today uproved on behalf
of the Board the following items:
Memorandum dated April 27, 1959, from Mr. Farrell, Director,
,
1 insion of Bank Operations, recommending the appointment of Harold H.
A:
)
-I-land as Analyst in the Division of Bank Operations, with basic annual
alarY at the rate of *5,430, effective the date he assumes his duties.
Letter to the Federal Reserve Bank of Kansas City (attached
Item
approving the designation of Robert Cahill, Douglas Nichols,
u-41(1 uertrude N. Pippin as special assistant examiners.
Secretary
BOARD OF GOVERNORS
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Item No. 1
5/15/59
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
?,
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 15, 1959
Board of Directors,
Security Trust Company,
r-Vrin, Massachusetts.
Gentlemen:
Pursuant to your request submitted through
the Federal Reserve Bank of Boston,
the Board of Governors
of the Federal Reserve System approves the establi
shment
of a branch at 500-502 Eastern Avenue, Lynn, Massach
usetts,
by Securit
y Trust Company, provided the branch is established
Within six months from the date of this letter and approval
of the State authorities is in effect as of the date
of the
establishment
of the branch.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 2
5/15/59
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRE9PONOENCE
TO THE HOAR°
May 15, 1959
The First National City Bank of New York,
Street,
New York, New York,
55 Wall
Gentlemen:
The Board of Governors of the Federal Reserve
System authorizes The First National City Bank of New York,
New York, New York, pursuant to the provisions of Section 25
of the Federal Reserve Act, to establish a branch in the City
of Cordoba, Argentina, and to operate and maintain such branch
subject to the provisions of such Section; upon condition that,
unless the branch is actually established and opened for
business on or before June 1, 1960, all rights granted hereby
shall be deemed to have been abandoned and the authority hereby
granted shall automatically terminate on such date.
Please advise the Board of Governors in writing,
through the Federal Reserve Bank of New York, when the branch
ls established and opened for business, furnishing information
as to the exact location of the branch. It is understood that
no change will be made in the location of the branch after
establishment without the prior approval of the Board of
Governors.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 3
FEDERAL RESERVE SYSTEM
5/15/59
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 15, 1959
The First National City Bank of New York,
55 Wall Street,
New York 15, New York.
Gentlemen:
In accordance with the request contained in
Your letter of April 22, 1959, transmitted through the
Federal Reserve Bank of New York, and on the basis of
the information furnished, the Board of Governors approves
R change in location of your Jeddah, Saudi Arabia, Branch
from its present location on King Abdul Aziz Street to a
new building to be constructed for your sole occupancy
ePproximately 100 yards from the present location, just
off King Abdul Aziz Street, Jeddah. It is noted the building will be ready for occupancy some time during the latter
part of 1960.
Please advise the Board of Governors in writing,
through the Federal Reserve Bank of New York, when the branch
is removed to the new location and opened for business, furnishing information as to the name of the street, if possible.
It is understood that the new location approved will not be
°hanged without the prior approval of the Board of Governors.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 4
FEDERAL RESERVE SYSTEM
5/15/59
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 15, 1959
Board of Directors,
Somerset Trust Company,
Somerset, Pennsylvania.
G
entlemen:
Pursuant to your request submitted through the
Federal Res,.trve Bank of Cleveland, the Board of Governors
aPProves the establishment of a branch by Somerset Trust
C°mPany at 420 North Center Avenue, Somerset, Pennsylvania,
Provided the branch is established within nine months from
the date of this letter and approval of the State authorities
is effective as of the date the branch is established.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
e-ciogokc*0
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4,0
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1/1
OF THE
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.*
4,A *
*
Item No. 5
FEDERAL RESERVE SYSTEM
5/15/59
WASHINGTON 25. D. C.
4,T
L?
7.
.
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44;7:4paset>0
ADDRESS OFFICIAL CORRESPONOENCE
TO THE DOARO
May 15, 1959
Board of Directors,
The Algonac Savings Bank,
Algonac, Michigan.
Gentlemen:
Pursuant to your request submitted through the
Federal Reserve Bank of Chicago, the Board of Governors of
I_he Federal Reserve System approves the establishment of a
t
°ranch at 8900 Dixie Highway, Fair Haven, St. Clair County,
Michigan, by The Algonac Savings Bank, Algonac, Michigan,
Provided the branch is established within six months from
the date of this letter and approval of State authorities is
in effect as of the date of the establishment of the branch.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 6
FEDERAL RESERVE SYSTEM
5/15/59
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 15, 1959
Board of Directors,
The American National Bank of Sapulpa,
Sapulpa, Oklahoma.
Ge
ntlemen:
The Board of Governors of the Federal Reserve System has
given consideration to your application for fiduciary powers and
ants you authority to act, when not in contravention of State or
cal law, as trustee, executor, administrator, registrar of stocks
d bonds, guardian of estates, assignee,
receiver, committee of
estates of
lunatics, or in any other fiduciary capacity in which
$41'te banks, trust companies or other corporations which come into
competition
with national banks are permitted to act under the laws
ti the State of Oklahoma, the exercise of such rights to be subject
,
0 the provisions of section 11(k) of the Federal Reserve Act and
Eulation F of the Board of Governors of the Federal Reserve
Zstem. A certificate indicating the fiduciary powers which The
-.J'erican National Bank of Sapulpa is now authorized to exercise
-L8
r
r
r
encloSed.
It is noted that you also desire to make application
Illth the Comptroller of the Currency for authority to change the
e of Your bank from The American National Bank of Sapulpa to
American National Bank and Trust Company. Upon receipt of
b`'Irioe from the Comptroller of the Currency that your bank has
been authorized to change its title, another
certificate will
e forwarded to You, dated as of the date of the
title change.
The
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
Enclosure
BOARD OF GOVERNORS
oti tt*i} 4.4
OF THE
401, qo
4,0*
Item No. 7
FEDERAL RESERVE SYSTEM
5/15/59
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 15, 1959
Board of Directors,
The First Bank of Brighton,
Brighton, Colorado.
Gentlemen:
Pursuant to your request submitted through
the Federal Reserve Bank of Kansas City, the Board
of Governors of the Federal Reserve System extends
until July 17, 1959, the time within which The First
Bank of Brighton may accomplish termination of its
membership in the Federal Reserve System, under the
original authorization contained in the Board's letter dated October 16, 1958.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 8
FEDERAL RESERVE SYSTEM
5/15/59
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 15, 1959
Coqrtroller of the Currency,
Treasury Department,
washington 25, D. C.
Attention Mr. Hollis S. Haggard,
Chief National Bank Examiner.
tlear Mr. Comptroller:
Reference is made to a letter from your office dated April 29,
1959,
Trasi enclosing copies of an application of The First Savings Bank and
tion Company, Ravenna, Ohio, to convert into a national banking associa8110,,and requesting a recommendation as to whether or not the application
'
14 be approved.
This bank has been a member of the Federal Reserve System since
Cotob
att.
, er 21, 1940 and, in view of the Reserve Bank's knowledge of the inn and the latest report of examination as of February 3, 1958, a
Lat:1 investigation of the application was not regarded as necessary.
by tZaation in the records of the Board of Governors and that supplied
tila 0 Federal Reserve Bank of Cleveland is favorable with respect to the
Lagrcial history of the bank, adequacy of capital structure, future earngeneral character of management, and services to the com(1p,1.:Y. Accordingly, the Board of Governors recommends approval of the
leatiOtt of
"
The First Savings Bank and Trust Company to convert into
tati°nal
banking association.
The Board's Division of Examinations will be glad to discuss any
4ePeot8 of
this case with representatives of your office if you so desire.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
4
Ititzt00
- Cif tok *0
OF THE
Item No. 9
FEDERAL RESERVE SYSTEM
5/15/59
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
a
44t4t. httlOY
'0440
TO THE BOARD
May 15, 1959
Comptroller of the Currency,
1,111!ee8ury
Department,
gashington 25, D. C.
Attention Mr. G. W. Garwood,
Deputy Comptroller of the Currency.
44"*. Comptroller:
Reference is made to a letter from your office dated February
11114759, enclosing copies of an application to organize a national bank
N. Blanton and associates, and requestli"(nil Texas, signed by Mr. W.
not the application should be
oved. recommendation as to whether or
Z5,n
Information contained in a report of investigation of the apilldic 4°11 made by an examiner for the Federal Reserve Bank of Dallas
e3 satisfactory findings with respect to the proposed capital
atrt
the ;,-41re of the bank, its earnings prospects, and management. Although
portL
eed for the proposed bank is not too well established, it is rethat the area is growing rapidly and there appears to be suffibil2ine5s available to permit profitable operations without seri4Ifecting the existing banks. Accordingly, the Board of Golrernars
IlIrtlends favorable consideration of the application.
The Board's Division of Examinations will be glad to discuss
Nras
(IN,rePect3 of this case with representatives of your office if you so
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 10
5/15/59
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 15, 1959
Co
mptroller of the Currency)
Treasury Department,
Washington 25,
D. C.
Attention Mr. G. W. Garwood,
Deputy Comptroller of the Currency.
Dear Mr. Comptroller:
Reference is made to'a letter from your office dated
August
26, 1958, enclosing copies of an application to organize a
:nional bank in the Robindell Shopping Center, Houston, Texas,
t,' requesting a recommendation as to whether or not the applica'- °n should be approved.
A report of investigation of the application made by an
er for the Federal Reserve Bank of Dallas indicates that the
0P°eed
capital structure and management of the bank would be sat0,-"actory. However, it appears that the prospects for profitable
s;"ations are not very favorable and there does not appear to be a
icient need for additional banking facilities in the area at the
sent time. It is reported that a charter has been granted for a
th
:State bank in the Meyerland Shopping Center which should satisfy
eta need for facilities in the area for the present. In the circumin,
nees, the Board of Governors does not feel justified in recommend4Pproval of the application.
expot,4
i:
W
The Board's Division of Examinations will be glad to disellss a
you
nyaspects of this case with representatives of your office if
so
desire.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 11
5/15/59
FEDERAL RESERVE SYSTEM
WASH IN OTON
OFFICE OF THE VICE CHAIRMAN
.71
'
104q*4
May 15, 1959
The Honorable Douglas Dillon,
Acting Secretary of State,
Department of State,
Washington 25, D. C.
Dear Mr. Dillon:
In the absence of Chairman Martin, this will
acknowledge your letter of May 1, 1959, with reference to one
of the recommendations in the report on "Expanding Private
flvestment for Tree World Economic Growth", which was requested
0Y the Department of State pursuant to Section 413(c) of the
Mutual Security Act.
This recommendation suggests "that the Federal Reserve
Board be requested to review, in the light of needs and conditions
the developing countries, the adequacy and effectiveness of the
fegnlations regarding Edge Act Corporations, with particular
.t'eference to the requirement that the Board's consent be obtained
ln advance of purchases by such Corporations of stock in other
C
orporations".
This proposal relates to a matter which received careful
ecnsideration by the Board in connection with the adoption of
prehensive revisions in Regulation K effective January 15,
?57. However, the Board will again review the particular
v1s1ons to which the report refers for the purpose of determining
IL.Lat changes, if any, in law or regulation appear warranted in the
of needs and conditions in the developing countries. Following
the review,
the Board will be pleased to inform the Department of
in line with your request, as to its conclusions in the
"ter, including its views as to whether any additional legislation
n this field is desirable or necessary.
r
Sincerely yours,
(Signed) C. Canby Balderston
C. Canby Balderston,
Vice Chairman.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 12
5/15/59
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 151
1959
"
gal-FIPEELIA
LLE11
Guy S. Freutel, First Vice President,
Federal Reserve Bank of St. Louis,
St. Louis 66, Missouri.
Ilr e
Dear Mr. Freute
l:
In accordance with the request outlined in your letter of
APri-1 101 1959,
the Board of Governors approves the following minimum
maximum salaries for the respective grades of the salary structure
tPPlicaole to the Head Office and Louisville
'Jank of St. Louis, effective July 1, 1959t Branch of the Federal Reserve
Grade
1
2
3
4
5
6
8
9
10
11
12
13
1/1
15
16
Minimum Salary
$ 2,160
2,460
2,580
2,760
3,060
3,300
3,600
4,coo
4,400
4,900
5,1400
6,000
6,700
7,600
8,500
9,500
Maximum Salary
$ 2,880
3,300
3,540
3,700
14,100
14,500
14,900
5,400
6,000
6,600
7,300
8,100
9,100
10,300
11,500
12,800
other ,, The Board approves the payment of salaries to the employees,
th„ than officers, within the limits specified for the grades in which
Positions of the respective employees are classified. It is assumed
Mr, Guy S. Freutel
-2
that all employees whose salaries are below the minimum of their grades
4.8,a result of the structure increase vial be brought vithin the - approPrlato range as soon as practicable and not later than October 1, 1959.
The Board understands that no explicit provision has been
'
In!de
i
in the 1959 budget to cover increased expenses arising from this
2',.allge in salary structure, but that any over-expenditure arising
bllerfrom will be nominal.
It is understood that the present employees' salary structure
the Little Rock and Memphis Branches will continue to be applicable
to those
offices.
at
Very truly yours,
• (Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 13
5/15/59
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADORESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 15, 1959
Mr. W. R. Diercks, Vice President,
Federal Reserve Bank of Chicago,
Chicago 90, Illinois.
Dear Mr. Diercks:
Reference is made to your letter of April 13, 1959,
concerning the proposed reemployment of Herschel R. Johnson,
who will retire from your Bank on September 30, 1959, on full—
time basis as trust examiner for the purpose of examining
trust departments of State member banks in your District and
assisting in the training of trust examiners.
In view of the circumstances set forth in your
letter, the Board approves the reappointment of Mr. Johnson
as an examiner for the Federal Reserve Bank of Chicago,
effective October 1, 1959, with the understanding that the
Period of his reemployment will be limited to one year from
October 1, 1959.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
oltvItti*4
W41,'
4
OF THE
1'
FEDERAL RESERVE SYSTEM
Item No. 14
5/15/59
WASHINGTON 25. D. C.
ACIDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 15, 1959.
NAroller of the Currency,
›ttsury Department,
"Waington 25, D.
G.
Attention Mr. G. W. Garwood,
Deputy Comptroller of the Currency.
411714r. Comptroller:
Reference is made to a letter from your office dated February 17,
enclosing copies of an application to organize a national bank at
Texas) and requesting a recommendation as to whether or not the
rv-'4.cation should be approved.
1959,
xille
thA report of investigation of the application made by an examiner
t°1
'
resp 8 Federal Reserve Bank of Dallas indicates favorable findings with
157:et to the proposed capital structure and management of the bank. How,
1 4;
4 it does not appear that the proposed bank could obtain a sufficient
!
t of business to assure profitable operations without seriously hurt8 existing bank.
rizti
"
The existing commercial bank is reported to be
tig reasonably satisfactory services, and there does not appear to
ht a
il
'
Acco lidient need to justify the chartering of another bank at this time.
the Board of Governors does not feel justified in recommendPProval of the application.
The Board's Division of Examinations will be glad to discuss any
"Peet8 of
this case with representatives of your office if you so desire.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 15
5/15/59
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS
orricIAL
CORRESPONDENCE
TO THE BOARD
May 15, 1959.
.
1,1r. Hugh Leach, President,
Federal Reserve Bank of Richmond,
Richmond 13, Virginia.
Dear Mr,
Leach:
The following procedural changes affecting the disbursing
Altctions of
the Office of the Controller have been approved by the
Board,
(1) Discontinuance of countersigning checks issued
in payment of Board's obligations. Accordingly,
all 1)v-roll Fund and General Fund checks will
bear on signature. The words "Authorized
Signature" will appear on the checks in lieu of
tith designations. Members of the staff of the
Controller's Office authorized to sign and whose
Specimen signatures are on file with your Bank, are:
J. J. Connell
S. H. Bass
John Kakalec
L. Waite Wailer, Jr.
(2) Amounts will be shown in figures only. Accordingly,
the practice of imprinting amounts on our checks by
means of a protectograph machine will be discontinued
as of May 31, 1959.
We have a small supply of General Fund dual signature checks
04 h.—
'"dy and it is our plan to use these before changing to the single
'
ale1latu
th
Payroll Fund checks will bear one signature beginning
0 type.
- Checks issued as of June 31 1959.
Very truly yours,
Kenneth A. Kenyon,
Assistaht Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 16
5/15/59
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C,
ADDRESS OFFICIAL CORRESPONDENCE
TO THE DOARD
May
15, 1959.
Mr. Donald B. Kennedy, Chief,
Technical Assistance Recruitment Services,
ff1ce of Personnel,
United Nations,
New York, New York.
2
Dear Mr. Kennedy:
In accordance with your request of April 15, 1959, the
Board Of
Goveynors has approved a leave of absence for Mr. Earl C.
,"c-Ld in order that he may serve as an Economic Adviser under the
Libya Nations Technical Assistance Program to the Government of
'
Ilbya for a period of one year.
In accordance with your letter of April 15 and a subqucnt conversation with Mr. Sprecher of our Division of Personnel
hdrrd •
nistration, it is understood that Mr. Hald will be placed on a
leavegi
without pay basis at the Board for a period of one year bew. fling approximately June 1, 1959, and that the United Nations
111 Pay his salary and expenses during this period.
It is further understood that during the period of Mr.
be,
leave, the Board will continue to make contributions in his
01:_;alf to the Retirement System of the Federal Reserve Banks in
that he may retain his coverage and all rights and benefits
-"IQer that retirement, system.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
•
BOARD OF GOVERNORS
OF THE
Item No. 17
5/15/59
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 15, 1959.
Pir. D. W. Woolley, Vice President,
Federal Reserve Bank of Kansas City,
Kansas City 6, Missouri.
Dear Mr. Woolley:
In accordance with the request contained in your
letter of May 110 1959, the Board approves the designation
of the following named individuals as Special Assistant
Examiners for the Federal Reserve Bank of Kansas City to
”sist in examinations of Commerce Trust Company, Kansas
eltY, Missouri:
Robert Cahill
Douglas Nichols
Gertrude N. Pippin
Appropriate notations have been made in our
records of the names to be deleted from the list of Special
Assistant Examiners.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
@FedFRASER