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Minutes fo To: Members of the Board From: Office of the Secretary May 22 1964. 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 ith 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. Chm. Martin Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. Mitchell Gov. Daane Minutes of the Board of Governors of the Federal Reserve System on Friday, May 22, 1964. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mills, Acting Chairman Robertson Shepardson Mitchell Sherman, Secretary Kenyon, Assistant Secretary Broida, Assistant Secretary Young, Adviser to the Board and Director, Division of International Finance Mr. Noyes, Adviser to the Board Mr. Cardon, Legislative Counsel Mr. Fauver, Assistant to the Board Mr. Brill, Director, Division of Research and Statistics Associate Director, Division of Holland, Mr. Research and Statistics Mr. Koch, Associate Director, Division of Research and Statistics Adviser, Division of Research Williams, Mr. Statistics and Mr. Furth, Adviser, Division of International Finance Mr. Sammons, Adviser, Division of International Finance Mr. Katz, Associate Adviser, Division of International Finance Mr. Axilrod, Chief, Government Finance Section, Division of Research and Statistics Mr. Eckert, Chief, Banking section, Division of Research and Statistics Mr. Keir, Chief, Capital Markets Section, Division of Research and Statistics Mr. Baker, Economist, Division of International Finance Mr. Mr. Mr. Mr. Money market review. Mr. Axilrod reviewed developments in the Government securities market; Mr. Eckert summarized banking and monetary (levelopments and commented on a distributed table showing net changes in ?ederal Reserve notes in circulation, by denominations and Federal Reserve 1S56 -2- 5/22/64 Districts, from April 1961 through April 1964; and Mr. Baker discussed foreign exchange market developments. Following discussion based on these reports, all members of the staff who had been present except Messrs. Sherman, Kenyon, and Fauver Withdrew from the meeting and the following entered the room: Mr. Mr. Mr. Mr. Mr. Mr. Mx. Hackley, General Counsel Solomon, Director, Division of Examinations O'Connell, Assistant General Counsel Shay, Assistant General Counsel Leavitt, Assistant Director, Division of Examinations Thompson, Assistant Director, Division of Examinations Egertson, Supervisory Review Examiner, Division of Examinations Discount rates. The establishment without change by the Federal San Reserve Banks of New York, Philadelphia, Chicago, Minneapolis, and in Francisco on May 21, 1964, of the rates on discounts and advances their existing schedules was approved unanimously, with the understanding that appropriate advice would be sent to those Banks. Report on competitive factors (North Wilkesboro-Rutherfordton, North Carolina). A report to the Federal Deposit Insurance Corporation on the competitive factors involved in the proposed merger of Security Bank and Trust Company, Rutherfordton, North Carolina, into The Northunanimously western Bank, North Wilkesboro, North Carolina, was approved for transmittal to the Corporation. The conclusion read as follows: The Northwestern Bank, North Wilkesboro, and Security Bank and Trust Company, Rutherfordton, serve different areas and there is virtually no competition between them. While the proposed merger would not significantly alter Northwestern's competitive 5/22/64 -3- capabilities in the areas in which it currently operates nor alter its position in relation to other banks in State, it would the expand its geographical coverage into another county and expose comto the nding area surrou the and banks in Rutherford County petitive capabilities of a much larger bank. in North The proposed transaction constitutes a further step single banks into large cial commer of Carolina toward the grouping d g artere bankin y headqu locall of e declin units and a consequent outlets. 1). Extension of time to open bank (Item No. Unanimous approval 1) Was given to the issuance of an order (copy attached as Item No. available to The Atlantic extending to September 15, 1964, the time Trust Company, both of JackNational Bank of Jacksonville and Atlantic ss the Westside Atlantic Bank of sonville, Florida, to open for busine a ic Bank), Daytona Daytona Beach (formerly described as Dayton Atlant had been permitted to acquire pursuant Beach, Florida, shares of which they to the Board's order of December 19, 1963. The meeting then adjourned Secretary's Note: Governor Shepardson today approved on behalf of the Board the following items: of Kansas City (attached Item Letter to the Federal Reserve Bank Richard Dan Cornelison as assistant 1121_ 2) approving the appointment of examiner. ch and Statistics dated Memorandum from the Division of Resear fill to n temporarily an Economist izatio author May 14, 1964, requesting n Sectio in that Division. Funds Position vacancy in the Flow of ending Memoranda from appropriate individuals concerned recomm s on the person ing the follow of es salari increases in the basic annual 1964: Board's staff, effective May 24, tsk., -4- 5/22/64 Division Name and title Basic annual salary From To Office of the Secretary Betty J. Abbott, Records Clerk Ruth W. Franta, Supervisor, Minutes Indexing and Reference Unit Roberta M. O'Rourke, Secretary Mary William Wahle, Records Clerk $ 4,635 $ 4,775 6,965 4,495 7,160 5,760 4,635 16,315 16,765 7,490 7,030 7,720 7,260 5,585 5,990 6,965 7,490 5,990 6,185 9,980 10,310 3,620 3,725 7,218 5,585 Legal Walter H. Young, Senior Attorney Research and Statistics Charles W. Bryson, Economist William N. Huff, Economist Examinations Prank P. Herigstad, Assistant Federal Reserve Examiner Daniel H. MacDonald, Assistant Federal Reserve Examiner Office of the Controller Adeline R. Tweed, Budget and Planning Assistant Data Processing Robert M. Steinberg, Economist Administrative Services Viola E. Hamilton, Charwoman William B. Stryker, Jr., Photographer (Offset) 6,864 Secreta 1859 UNITED STATES OF AMERICA Item No. 1 5/22/64 E SYSTEM L BEFORE THE BOARD OF GOVERNORS OF THE FEDERA RESERV WASHINGTON, D. C. 111 the Matter of the Applications of THE ATLANTIC NATIONAL BANK OF JACKSONVILLE and ATLANTIC TRUST COMPANY for approval of the acquisition of voting Shares of Daytona Atlantic Bank, Daytona Beach, Florida ORDER EXTENDING PERIOD OF TIME WITHIN WHICH BANK IS TO BE OPENED FOR BUSINESS By Order dated December 19, 1963, the Board of Governors, y Act of 1956 Pursuant to section 3(a)(2) of the Bank Holding Compan l Reserve (12 U.S.C. 1842(a)(2) and section 222.4(a)(2) of Federa of The Regulation Y (12 CFR 222.4(a)(2)), granted the applications Company for l'tlantic National Bank of Jacksonville and Atlantic Trust the 36,000 voting shares of approval of the acquisition of 35,000 of Daytona Atlantic Bank, Daytona Beach, Florida, a proposed new bank. Board's Rules of Procedure Nrsuant to section 262.2(0(5) of the ations (12 CFR 262.2(f)(5)), the Board's action in granting the applic ic Bank, the name Ilas subject to a requirement that Daytona Atlant Daytona Beach, Of which was changed to Westside Atlantic Bank of of the date of the Board's be opened for business within six months Order; that is, on or before June 19, 1954. 4.• 1860 -2extension of Applicants have applied to the Board for an is to be the date by which Westside Atlantic Bank of Daytona Beach Board that good cause has opened for business, and it appears to the time, and that such extension been shown for the requested extension of interest. would not be inconsistent with the public Accordingly, within which Applicants IT IS HEREBY ORDERED, that the time be and hereby is may open Westside Atlantic Bank of Daytona Beach 1964. e%tended to no later than September 15, 22nd day of May, 1964. Dated at Washington, D. C., this ors. By order of the Board of Govern (Signed) Aerritt Sherman Merritt Sherman, Secretary. 4 'L.- I_AL ,LOC Item No. 2 HOARD OF GOVERNORS 5/22/64 OF THE Got;,! • o . VL bERAL RESERVE SYSTEM WASHINGTON, O. C. 20551 ENCE ADDRESS OFFICIAL CORRESPOND TO THE BOARD May 22, 1964. President, Mr. George D. Royer, Jr., Vice City, Federal Reserve Bank of Kansas 6 Kansas City, Missouri. 6410 Dear Mr. Royer: d In accordance with the request containe oves d the appr Boar , 1964 in your letter of May 18, on as an the appointment of Richard Dan Cornelis Bank of rve ral Rese Fede the assistant examiner for and ry rate sala the se advi Kansas City. Please ent. intm appo effective date of the Very truly yours, (Signed) Karl E. Bakke Karl E. Bakke Assistant Secretary.
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