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lipv6o9 1O/59 Minutes for To: May 17, 1961 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 Minutes of the Board of Governors of the Federal Reserve System on Wednesday, May 17, 1961. PRESENT: Mr. Mr. Mr. Mr. Martin, Chairman Mills Shepardson King Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Discount rates. ReServe 61411 The Board met in the Board Room at 10:00 a.m. Kenyon, Assistant Secretary Thomas, Adviser to the Board Shay, Legislative Counsel Molony, Assistant to the Board Fauver, Assistant to the Board Hackley, General Counsel Noyes, Director, Division of Research and Statistics Solomon, Director, Division of Examinations Hexter, Assistant General Counsel Furth, Adviser, Division of International Finance Sammons, Adviser, Division of International Finance Daniels, Assistant Director, Division of Bank Operations Landry, Assistant to the Secretary The establishment without change by the Federal Bank of Boston on May 15, 1961, of the rates on discounts and e8 in its existing schedule was approved unanimously, with the tlriclerstanding that appropriate advice would be sent to that Bank. Items circulated to the Board. The following items, which had been circulated to the Board and copies of which are attached to these 411411tes under the respective item numbers indicated, were approved 11118111mously: Item No. Lett to The Chase Manhattan Bank, New York, br Iork, approving the establishment of a 4 44ch at 2218 Fifth Avenue, Borough of Ellhattan. 1 5/17/61 -2Item No. Letter to Peoples Exchange Bank, Russellville, Altaziaas, approving an investment in bank Premises. 2 Letter to the Comptroller of the Currency recomending favorably with respect to an application 'do organize a national bank at Wichita, Kansas. 3 T Revised draft of statement re H. R. 6900. Pursuant to the Iladerstanding at the meeting on May 15, 1961, there had been distributed 4 revised draft of statement that might be given by Chairman Martin on May 18 before a Subcommittee of the House Committee on Banking and ClIrrenoy at hearings on H. R. 6900, a bill relating to the gold certificate reserves of Federal Reserve Banks against deposit and note liabilities "to the payment of interest on time deposits of foreign governments. There had also been distributed copies of communications from all Federal Reserve Banks in reply to the Board's request of May 11 for comments on the proposed legislation. In the course of review of the draft statement, Governor Mills l'ererd to the position he had expressed at the meeting on Monday, May 15, which was to the effect that he believed the Board should oppose Illaequivocally the proposed elimination of the gold reserve requirements. Re cLuded, however, if the majority of the Board was disposed to favor a 1)(3s1t1on along the lines of the draft statement, he would have several un. 1,. regarding the wording of parts of the document. ..4sestions thela mentioned those suggestions. Governor Mills t. JLL) 5/17/61 -3A discussion ensued with respect to the various portions of the proposed statement during which additional changes were suggested and commented upon. Following the discussion, it was understood that the statement would be revised to take into account the suggestions Made at this meeting, along with additional comments that previously haa been transmitted to Mr. Molony, and that the statement would be Pl'esented in a final form satisfactory to Chairman Martin. Secretary's Note: Subsequently, the hearings on H. R. 6900 were postponed indefinitely. The meeting then adjourned. Secretary's Notes: Governor Shepardson today approved on behalf of the Board letters to the Federal Reserve Banks of Boston, Cleveland, Chicago, Minneapolis, and Kansas City (attached Items 4, 5, 6, 7, and 8, respectively) approving the appointment or designation of the following persons at the respective Banks as indicated: 130ston James P. McGovern, Jr. Nicholas G. Tsimbidaros Special Assistant Examiners Clevelan d Chica€0 Edward W. Kilrain Examiner G. Ward Stearns Examiner Mit irleapolis James H. Hamill Special Assistant Examiner 14148ae City Maurice J. Swords Examiner On May 16, 1961, Governor Shepardson approved on behalf of the Board the following items: 5/17/61 Letters to the Federal Reserve Bank of Cleveland (attached Items 9 and 10) approving the appointments of Emmett H. Dunaway and Leo G. Schneider as examiners. Memoranda from appropriate individuals concerned recoimner the following actions relating to the Board's staff: inent Frances E. Willis as Charwoman, Division of Administrative Services, vtth basic annual salary at the rate of $3,185, effective the date of entrance upon duty. -§...t 4.114:y increase Walter H. Young, Assistant Counsel, Legal Division, from $131510 to Ai Y-4317701 effective May 280 1961. Aavaa of sick leave t Orville K. Thompson, Economist, Division of Research and Statistics, 0 be advanced sick leave beginning April 28, 1961, through May 10, 1961. 171 BOARD OF GOVERNORS ?Attila**, ir op OF THE 0 0 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. 4 4 Item No. 1 5/17/61 ADDRESS OFFICIAL CORRESPONOENCE TO THE BOARD sot 444*** May 17, 1961 Board of Directors, The Chase Manhattan Bank, New York, New York. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of New York, the Board of Governors of the Federal Reserve System approves the establishment by The Chase Manhattan Bank, New York, New York, of a branch at 2218 Fifth Avenue, Borough of Manhattan, New York, New York, provided the branch is established within six months from the date of this letter. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. I718 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 2 5/17/61 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD May 171 1961 lloard of Directors, Peoples Exchange Bank, klesellville, Arkansas. Ge ntlemen: Pursuant to your request submitted through the Federal Rese:r Res vo Bank of St. Louis, the Board of Governors of the Federal theerve System approves, under the provisions of Section 24A of ederal Reserve Act, an investment by Peoples Exchange Bank, 43aellville, Arkansas, of $346,283 in bank premises. This approval is granted for expenditures substantially b„,yeordance with a "PRELIMINARY COST ESTIMATE" dated March 1961, tiYlewi ttenberg, Delony & Davidson, a copy of which was submitted to ApriPederal Reserve Bank of St. Louis with your bank's letter of for 17, 1961. The approval herein granted is for the amount set 15 "in the previously referred to "PRELIMINARY COST ESTIMATE" less pro:,000 for furniture, draperies, etc., which does not require ap481, 11 of the Board, plus $43,500 representing cost of a lease which The uean purchased and funds necessary to acquire additional land. aPproval also includes $521 in miscellaneous expenses to date. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM tt * Item No. 3 5/17/61 WASHINGTON 25. D. C. ADDRESS orriciAL CORRESPONDENCE TO THE BOARD tta44. Mtn/ -4444*6 .P11Ny 17) 1961 9,°raptroller of the Currency, Treasury Department, Washington 25, D. C. Attention: Mr. C. C. Fleming, Deputy Comptroller of the Currency. Il ar Mi, Comptroller: Reference is made to a letter from your office dated Pe bruary 17, 1961, enclosing copies of an application to organize 4 national bank in Wichita, Kansas, and requesting a recommendation 48 to whether or not the application should be Approved. A report of investigation of the application made by an . 1111.iner for the Federal Reserve Bank of Kansas City indicates that Illture earnings prospects are favorable and that a degree of need ;sta for the bank. The proposed capital structure of ',;d400,000 ,Pars low in relation to the Volume of business anticipated. It 14P seem desirable to provide capital structure of 500,000, the ::,iount which would now be required of a State-chartered bank in ita. The management factor would seem satisfactory if an 4ecutive officer acceptable to the Comptroller of the Currency is orl Yed. Accordingly, the Board of Governors recommends approval ; 41e application provided capital structure of $500,000 is pro111 to'ed and that arrangements are made for management satisfactory Your office. : Very truly yours, (signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS , 0441trol 4 4 4. 0 4.1 41,1 4 OF THE to,k 0 Item No. FEDERAL RESERVE SYSTEM 0 t* 4 5/17/61 WASHINGTON 25. D. C. 4 ** ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD 011 oor, , 441:1*** May 171 1961 Mr. B. F. Groot, Vice President, Bank Examination Department, Federal Reserve Bank of Boston, Boston 6, MassaChusetts. Dear Mr. Groot: In accordance with the request contained in your letter of May 11, 1961, the Board approves the designation of James P. McGovern, Jr., and Nicholas G. Tsimbidaros as Special assistant examiners for the Federal Reserve Bank of Boston for the purpose of participating in examinations of Depositors Trust Company, Augusta, Maine; The Merrill Trust Company, Bangor, Maine; The Connecticut Bank and Trust Company, Hartford, Connecticut; and Rhode Island Hospital Trust Company, Providence, Rhode Island. As requested, the name of Edward F. Holway has been deleted from the list of special assistant examiners approved for your Bank. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE Item No. 5 FEDERAL RESERVE SYSTEM 5/17/61 WASHINGTON 25, O. C. ADDRESS OFFICIAL. CO RRESPONDE N L TO THE BOARD May 17, 1961 Ni. Paul C. Stetzelberger, Vice President, Federal Reserve Bank of Cleveland, Cleveland 1, Ohio. Dear Mr. Stetzelberger: In accordance with the request contained in Your letter of May 10, 1961, the Board approves the appointment of Edward W. Kilrain, at present an assistant examiner, as an examiner for the Federal Reserve Bank of Cleveland. Please advise us if the appointment is not made effective on June 25, 1961, as planned. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 6 5/17/61 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD tatt "4o40 May 17, 1961 AIR MAIL Mr. Hugh J. Helmer, Vice President, Federal Reserve Bank of Chicago, Chicago 90, Illinois. Dear Mr. Helmer: In accordance with the request contained in your letter of May 12, 1961, the Board approves the appointment of G. Ward Stearns, at present an assistant examiner, as an examiner for the Federal Reserve Bank of Chicago. Please advise us if the appointment is not made effective on June 5, 1961, as planned. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 7 5A7/61 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD May 19, 1961 Mr. Frederick L. Deming, President, Federal Reserve Pank of Minneapolis, Minneapolis 2, Minnesota. Dear Mr. Deming: In accordance with the request contained in Your letter of May 15, 1961, the Board approves the designation of James H. Hammill.as a special assistant examiner for the Federal Reserve Rank of Minneapolis. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE Item No. FEDERAL RESERVE SYSTEM 8 5/17/61 WASHINGTON 25. D. C. ADDRESS OFFICIAL DORRESPONOE144CE TO THE May 17, BOARD 1961 Mr. L. F. Mills,- Vice President, Federal Reserve Bank of Kansas City, Kansas City 6, Missouri. Dear Mr. Mills: In accordance with the request contained in Your letter or May 12, 1961 0 the Board approves the appointment of Maurice J. Swords, at present an assistant examiner, as an examiner for the Federal Reserve Pank of Kansas City, effective June 1, 1961. Please advise us or the salary rate. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 04# BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 9 5/17/61 WASHINGTON 25, D. C. ADONICII• arricam. CONOICIPONOICNCIC TO THIC OCIANO May 17, 1961 Ni. Paul C. Stetzelberger, Vice President, Federal Reserve Bank of Cleveland, Cleveland 1, Ohio. Dear Mi. Stetzelberger: In accordance with the request contained in your letter of May 9, 1961, the Board approves the appointment of %nett H. Dunaway, at present an assistant examiner, as an examiner for the Federal Reserve Bank of Cleveland. Please advise us if the appointment is not made effective on June 25, 1961, as planned; • Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. ,4 aCdt,I) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item NO. 10 5/17/61 WASHINGTON 25. D. C. ADORE'S ms% orriciAL CORRESPONOICNCC TO THE 1110^010 • May 17, 1961 Mr. Paul C. Stetzelberger, Vice President, Federal Reserve Bank of Cleveland, Cleveland 1, Ohio. Dear Mr. Stetzelberger: In accordance with the request contained in Your letter of May 9, 1961, the Board approves the appointment of Leo G. Schneider, at present an assistant examiner, as an examiner for the Federal Reserve Bank of Cleveland. Please advise us if the appointment Is not made effective on June 25, 1961, as planned. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary.
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