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Minutes for May 24, 1962 To: 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. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. King Gov. Mitchell Minutes of the Board of Governors of the Federal Reserve System on Thursday, May 24, 1962. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Balderston, Vice Chairman Mills Robertson Shepardson King Sherman, Secretary Kenyon, Assistant Secretary Molony, Assistant to the Board Fauver, Assistant to the Board Hackley, General Counsel Solomon, Director, Division of Examinations Mr. Johnson, Director, Division of Personnel Administration Mr. Chase, Assistant General Counsel Mr. Shay, Assistant General Counsel Mr. Conkling, Assistant Director, Division of Bank Operations Mr. Daniels, Assistant Director, Division of Bank Operations Mr. Kiley, Assistant Director, Division of Bank Operations Mr. Goodman, Assistant Director, Division of Examinations Mr. Leavitt, Assistant Director, Division of Examinations t Section, Mt. Longhorn, Chief, Call Repor tions Opera Bank Division of ion Mr. Veenstra, Technical Assistant, Divis tions Opera of Bank Mr. Mr. Mr. Mr. Mr. Mr. Circulated or distributed items. The following items, which had been circulated or distributed to the members of the Board and es under the respective item Q°Pies of which are attached to these minut rilmilbers indicated, were approved unanimously. 4) ( 19 5/24/62 -2Item No. Letter to Bank of America, New York, New York, granting consent for Banca d'America e d'Italia to establish an agency at the former location of its branch at Corso Italia 98, Catania. Letter to Lincoln Rochester Trust Company, Rochester, New York, approving an extension of time to establish a branch at 875 South Avenue. 2 Telegram to the Federal Reserve Bank of Richmond regarding the fallout shelter project at the I3ank's head office. 3 Letter to the Federal Deposit Insurance Corporation regarding the application of Richview State Bank, l ichview, Illinois, for continuation of deposit lasurance after withdrawal from membership in the Federal Reserve System. 4 Telegram to the Federal Reserve Bonk of Boston ./iterposing no objection to the rental of an , 4Cli 310 electronic check processing system. ' 5 Letter to the Federal Reserve Bank of Atlanta arding a contemplated amendment to the charter Whitney Holding Corporation, New Orleans, Lotzisiana. 6 Letter to United California Bank, Los Angeles, 41ifornia, approving the establishment of a eMPorary branch in the Howard-Canfield Building, , k Itrite. Barbara. ' 7 N Z Letter to the Attorney for Deposit Guaranty Bank Trust Company, Jackson, Mississippi, transfactors r tting a copy of the report on competitive 1,1 ceived by the Board from the Department of Justice tith respect to the application of Deposit Guaranty Ilk and Trust Company to merge with Bank of Hazlehurst, : ' 4Izlehurst, Mississippi. 8 330 5/24/62 -3Item No. Letter to the Chairman of the Presidents' Conference requesting a study by the Conference concerning the applicability to Reserve Banks of State statutes requiring certain holders Of abandoned or unclaimed intangible property to make reports and transfers thereof to the custody Of the State. 9 Letter to Chairman Celler of the House Committee on the Judiciary with regard to questions raised by l hlm concerning the possible elimination of severa ting permit L, tion exceptions, included in Regula interlocking directorates in certain circumstances. 10 Letters to the Presidents of all Federal Reserve Banks and to the Federal Deposit Insurance Corporation regarding the collection of data on branch Dank deposits. Letter to the Federal Reserve Bank of Chicago approving revised ranges for the officer salary groups at the Bank. 13 Letter to the Federal Reserve Bank of Dallas an aPProving (1) the appointment of Thomas R. Sulliv ation Examin as Vice President in charge of the n Department, and (2) payment of salaries to certai ors. Direct of Board °fricers at rates fixed by the t Guaranty Bank and The letter to the Attorney for Deposi g Trust Company (Item No. 8) was approved subject to the understandin that before it was sent a check would be made to determine that the to the transmittal of the Department of Justice would have no objection l'equested report on competitive factors. (Secretary's Note: A sub- Department would have no check by Mr. Shay revealed that the objection.) 5/24/62 -4)Maine). Report on competitive factors (Portland-Lewiston There had been distributed a draft of report to the Comptroller of the Currency on the competitive factors involved in the proposed consolidation of Canal National Bank, Portland, Maine, and American Trust Co., Lewiston, Maine. The conclusion read as follows: Investigation indicates there is little competition between Canal National Bank and American Trust Co. While the proposed consolidation would have little effect on competition in the Portland area, it might tend to stimulate competition in the Lewiston-Auburn area. The report was approved unanimously for transmittal to the Comptroller. Report on competitive factors (Chicago, Illinois). There had been distributed a draft of report to the Comptroller of the Currency on the competitive factors involved in the proposed merger Drovers Trust and Savings Bank, Chicago, Illinois, into The Drovers National Bank of Chicago, Chicago, Illinois. The conclusion read as follows: The proposed transaction will have no adverse effect on competition. The report was approved unanimously for transmittal to the Comptroller. Oral presentations. In supplementation of a memorandum distri- buted under date of May 21, 1962, Mr. Shay commented briefly on e'rrangements for the oral presentations to be heard by the Board t°morrow with respect to the applications of (1) Asbury Park and Ocean Grove Bank, Asbury Park, New Jersey, to merge with The Central Jersey _5_ 5/24/62 Bank and Trust Company, Freehold, New Jersey, and (2) United California Bank, Los Angeles, California, to merge with The First National Bank Of Vista, Vista, California. Among other things, it was noted that in accordance with the usual procedure copies of the respective applications had been placed on file for public inspection, the customary deletions having been made. It was understood that stenographic transcripts of the proceedings would be prepared and placed in the Board's files. All members of the staff then withdrew and the Board went into executive session. Annex to Board building. Following the meeting, Governor Shepardson informed the Secretary that during the executive session he l'ePorted to the Board that he had had a conference with Mr. John Rarbeson of Harbeson Hough Livingston and Larson, Philadelphia, Pennsylvania, regarding a review of plans for an annex to the Board's blinding in which he (Governor Shepardson) had authorized Mr. Harbeson to proceed with such a review on a cost-plus basis, the total cost not t° exceed $5,000 without prior report and further authorization. Governor Shepardson also advised that the Board concurred in this action. The meeting then adjourned. Secretary's Notes: Pursuant to the recommendation contained in a memorandum from the Division of Research and Statistics, Governor Shepardson 5/24/62 -6- approved on behalf of the Board on May 23, 1962, an increase in the basic annual salary of Richard C. Pickering, Economist in that Division, from $9,735 to $10,635, effective May 27, 1962. Governor Shepardson today approved on behalf of the Board the following items: Letter to the Federal Reserve Bank of Richmond (attached Item No. 15) approving the appointment of Claude R. Taylor as assistant examiner. Letter to the Federal Reserve Bank of Chicago (attached 'tam No. 16) approving the appointment of Laurence E. Corr, Franklin D. Dreyer, Byron J. Loving, and O. Jay Tomson as examiners. Memoranda from appropriate individuals concerned recommending the following actions relating to the Board's staff: Transfer Jane Smith Wilson, from the position of Clerk in the Division Of International Finance to the position of Payroll Clerk in the ?ffice of the Controller with an increase in basic annual salary from 4,460 to $4,675, effective upon assuming her new duties. Ace-.10-tance of resignation Maria Jo Peterson, Payroll Clerk, Office of the Controller, effective June 6, 1962. 11kpointment of consultant . Professor Dudley J. Cowden, University of North Carolina, aPPointed Consultant (Division of Research and Statistics), effective /14til December 31, 1962, on a temporary contractual basis with pensation at the rate of $50 per day for each day worked for 'he Board and with the understanding that transportation expenses 341d travel status per diem would be paid in accordance with the 18 04rd's travel regulations. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 1 5/24/62 ADDRESS OFFICIAL CORREBPONDENCE TO THE BOARD May 24, 1962 Mr. Robert G. Mayer, Vice President, Bank of America, 41 Broad Street, New York 15, New York. Dear Mr. Mayer: This will acknowledge your letter of April 25, 1962, of New York, transmitted through the Federal Reserve Bank Banca d'America e of Branch Italy, a, Catani advising that the new quarters to 98 Italia Corso from ed relocat dlItalia had been . Catania at Corso Sicilia 51, In accordance with your request and on the basis of , the Board of Governors the information furnished in your letter e dlItalia to establish ca grants its consent for Banca d'Ameri at Corso Italia branch the of an agency at the former location 98, Catania. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS otitatitt*0 *44 OF THE VI Item No. 2 5/24/62 FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD ,k01120 0* 444*** May 24, 1962 Board of Directors, Lincoln Rochester Trust Company, Rochester, New York. Gentlemen: • The Board of Governors of the Federal extends to December 8, 1962, the System Reserve time within which Lincoln Rochester Trust Company, Rochester, New York, may establish a branch at 875 South Avenue, Rochester, New York, under the authority granted in the Board's letter dated December 8, 1961. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 1936 Item NO. 3 5/24/62 TELEGRAM SERVICE LEASED WIRE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON May 24, 1962 Wayne.Richmond Reurlet Nay 11, Board appreciates being informed of progress of fallout shelter project at head office and has no objection to acceptance of bid referred to in letter and expenditure of approximately $77,000,including architects and engineers' fees, on entire project. (Signed) Merritt Sherman Sherman BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. WASHINGTON 25. D. C. 5/24/62 4 ADDRESS orriciAL CORRESPONDENCE TO THE BOARD 41. Mat 0444** May 24, 1962 The Honorable Erie Cooke, Sr.', Chairman, Federal Deposit Insurance Corporation, Washington 25, D. C. Dear Mr. Cooke: Reference is made to your letter of May 9, 1962, concerning the application of Richview State Bank, Richview, Illinois, for continuance of deposit insurance after withdrawal from membership in the Federal Reserve System. No corrective programs which 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) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 1938 Item No. TELEGRAM 5/24/62 LEASED WIRE SERVICE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTE WASHINGTON May 24, 1962 Ellis - Boston Board interposes no objection to rental of electronic Cheek processing equipment as proposed in urlet May 15, 1962. (Signed) Merritt Sherman SHERMA,N 5 BOARD OF GOVERNORS OF THE W001, FEDERAL RESERVE SYSTEM Item No. `1 * * 6 5/24/62 WASHINGTON 25, D. C. kr• ft ADDRESS OFFICIAL CORRESPONDENCE 43j'' *tt,4toisti," TO THE BOARD ott4ota* May 24, 1962 J. E. Denmark, Vice President, Federal Reserve Bank of Atlanta, Atlanta 3, Georgia. 15/1 4r Mr. Denmark: This is with reference to the letter of May 8, 1962 ,ro f In Malcolm L. Monroe, Esq., of New Orleans, to the Board of ' 1?vernors, a copy of which Mr. Monroe sent to you. Enclosed „th the letter was a copy of Mr. Monroe's letter of the same to you, with which was enclosed a copy of a contemplated 'llendment to the charter of idhitney Holding Corporation. The Board and its staff have no comments to offer with res ir Peet to the proposed amendment. If you consider it advisable, ' °11 maY wish to inform Mr. Monroe to this effect. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. .1:•t'i.:344.....f,„..)•• • BOARD OF GOVERNORS OF THE Item No. 7 5/24/62 FEDERAL RESERVE SYSTEM WASHINGTON 25, O. C. ADDRESS orriama. CORRESPONDENCE TO THE SOARD ay 240 1962 Board of Directors, United California Bank, Los Angeles, California. Gentlemen: The Board of Governors of the Federal Reserve System approves the establishment of a temporary branch as of May 21, 1962, in the Howard-Canfield Building, Santa Barbara, California, by United California Bank, Los Angeles, California. The Board's approval is for that period of time daring which United California Bank's Santa Barbara office, directly across the street, is being remodeled or for a period of not more than six months from May 21, 1962, Very truly your (Signed) Elizabeth L. Carmichael Elizabeth L Carmichael, Assistant Secretary. 1941 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. WASHINGTON 25, D. C. 5/24/62 8 ADDRESS' OFFICIAL CORRESPONDENCE TO THE BOARD May 24, 1962 Mr. W. S. Henley, , , 11e418Y, Jones dc Henley, Deposit Guaranty Bank Building, Jackson 5, Mississippi. ipear Mr. Henley: Your letter of May 15, 1962, to Chairman Martin was in th -er reference to the Board's letter of April 26, 1962, which orlined the request in your letter of April 19, 1962, for copies me the reports received by the Board under the so-called Bank Wger Act of 1960 (12 U.S.C. § 1828(c)), from the Department of i48tice, the Comptroller of the Currency, and the Federal Deposit rae lll'ance Corporation on the competitive factors involved in two comger aPplications of your client, Deposit Guaranty Bank and Trust othY, Jackson, Mississippi. These applications, which were Q04aPProved by the Board late in 1960, were for the Board's prior ii:Zat to the merger of Deposit Guaranty Bank and Trust Company the Bank of Hazlehurst, Hazlehurst, Mississippi, and with the 4anki„ - County Bank, Brandon, Mississippi. d In your letter of May 15 you have revised substantially the „ aek re contained in your letter of April 19. Thus, you now 440i (341Y for the report, submitted pursuant to the Board's request tr i the statute, by the Department of Justice on the competitive raj Gilar°1-8 involved in connection with the application of Deposit a4tY Bank and Trust Company to merge with the Bank of Hazlehurst. A8, pre'24 Pointed out, that application was the subject of an oral °entation before the Beard on November 16, 19600 In addition, in your letter of April 19 you seemed interested Rerierai Ilith 4 in information that would be helpful in determining policy 14 respect to any possible future merger situations that might arise0 or ti'lur letter of May 15, however, you have indicated that the report Nipee DePartment of Justice on the competitive factors involved with ttaefu t to the application covering the Bank of Hazlehurst would be date in determining whether or not it would be advisable, at a future 444 to make a new application for a merger of that bank with Deposit ntY Bank and Trust Company in the light of developments since 1960. Henley Having considered the matter as presented by your letter -1-5, the Board herewith grants your request for the report the competitive factors which it received from the Department of Ilatice with respect to the application of Deposit Guaranty Bank and !Tuft, Company to merge with Bank of Hazlehurst. A copy of the report le enclosed, Or 14 , -4Y Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 9 5/24/62 ADDRESS OFFICIAL CORRESPONDENCE: TO THE HOARD May 24, 1962 14r. W. D. Fulton, Chairman, Conference of Presidents of the Federal Reserve Banks, 2./,0 Federal Reserve Bank of Cleveland, ' 4-eveland 1, Ohio* tear Mr. Fulton; By its letter of April 2, 1962, the Board advised the Pl'esidents of the Federal Reserve Banks of the question it had cently received from the Federal Reserve Bank ofDallas concern. the applicability to that Bank of a Texas statute enacted :Irlier this year requiring certain holders of abandoned or unt intangible prop,:rty to make reports and transfers thereof to the custody of the State. Briefly, the Board's letter asked information concerning any similar statutes in the States in ich other Federal Reserve Banks and their branches are located, d for related information and comments. Z The Board's letter indicated the desirability of disposing the matter by the beginning of this month. However, that was not 3V-ble due largely to the technical and complicated nature of the th.nrcto The replies of the Federal Reserve Banks indicate also : 1 e7L there are differences of views concerning the matter. The NiVies clearly confirm the view of the Federal Reserve Bank of , and also the view of the Federal Reserve Bank of Chicago cZich subsequently presented the same question with respect to t2liance with similar statutes in Illinois and Michigan, that 80— matter is one for System consideration, as mentioned in the 41*cil e letter of April 2. ot Z In the circumstances, the Board believes that the subject te „ such pre;' a nature that the results of a study thereof by the tc,l,entel Conference would be especially beneficial. The Board, the, at42-1°re, would appreciate it if you would arrange to have such a wr undertaken. 1941 Mr. W. D. Fulton For such assistance as it may be in connection with the stuoky, there is enclosed a copy of a staff memorandum of May 18, 1962, to the Board which, among other things, summarizes the replies of the Federal Reserve Banks to the Board's letter of April 2. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. Enclosure k copy of this letter and memorandum is being sent to each Reserve Bank President and the Secretary of the Conference of Presidents. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON Item No 10 5/24/62 OFFICE OF THE VICE CHAIRMAN May 244 1962 The Honorable Emanuel Celler, Chairman, Committee on the Judiciary, House of Representatives, . Washington 25, D. C. Dear mr. Chairman: Upon receiving your letter of March 9) 1962 regarding interlocking directorates under section 8 of the Clayton Act and t_he Beardls Regulation 14, the Board asked the Federal Reserve Banks for their views and comments, because the matters were within the 6Pecial cognizance of the Reserve Banks. Their replies have now been ' l eceived. The questions raised in your letter related to three provi! i°ne in Regulation L containing exceptions made by the Board pursuant r the authority granted in the statute. The exceptions were all J-neerted in the Regulation when it was first revised following the enactment, of the Banking Act of 1935, which completely rewrote aection 8. se The first of these exceptions, which is contained in ction 212.3(a) of Regulation L, provides: "Any private banker or any director, officer, or employee of a member bank of the Federal Reserve System may be at the same time a director, officer, or employee of not more than one cooperative bank, credit union or other similar institution .. ." The Federal Reserve Banks report that little, if any, use has b it een made of this exception, but a number of them point out that , a Would be discriminatory to eliminate it without making the statute licable also to interlocking relationships with mutual savings e a: 11k83 Federal savings and loan associations) and presently and State srpt credit unions, all of which also compete with member banks for unngs. To achieve such uniformity would require legislation: mutual 4W,4-ngs banks are excepted by paragraph 7 of section 8; Federal savings 011`: loan associations and Federal credit unions are excepted by the thrsning paragraph of section 8 because they are not "organized under National Bank Act or organized under the laws of any State or of BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM The Honorable Emanuel Celler -2- the District of Columbia". Most State savings and loan associations and about half of State credit unions are not covered by the statute because they are not "banks" (because they do not accept deposits). Section 212.3(b) provides that any director, officer, or employee of a member bank may also be an officer, director, or employee of one other bank if "active consideration is being given to .the consolidation or merger" of the two banks or to the purchase of the assets and the assumption of the liabilities of one bank by the other, provided that no such relationship shall continue for more than six months. This provision, which, as noted, was inserted when section 8 was revised in 1935 subsequent to the Banking Holiday, was designed to facilitate the salvaging of banks which were in danger of closing. The replies of the Federal Reserve Banks indicate that the .1Z 3 (Ivision has not been used for many years. However, a number of he Federal Reserve Banks believe that it should be retained since lt might serve a useful purpose in an emergency. Fe In this connection two paragraphs from the reply of the deral Reserve Bank of New York may be of interest to you. "Congressman Celler refers to an increase in concentration in the banking field through mergers in recent years and apparently is under the impression that this sub-section encourages such mergers, commenting that there was *such an interlocking situation in the recent merger application by the Chemical New York Trust to acquire the Long Island Trust Compan y'. At page 7(a) of the application, it is indicated that two officers of the latter would become officers of the resulting bank. At page 7 'continued'-11, under the heading Principal Business Affiliations of Principal Executive Officers of Chemical Bank New York Trust Company (intended to mean the resulting bank, rather than the participating bank of the same name), the same two persons are shown to be officers of Long Island Trust Company, which apparently gave Congressman Celler the impression that they were both serving each of the participating banks; there were no interlocking relationships between such banks when the application was submitted, however, and so. far as we know, there are none now. "To the best recollection of our staff, many years have elapsed since the sub-section was actually used in this District, hence it seems obvious that it has not BOARD OF GOVERNORS The Honorable Emanuel Celler OF THE FEDERAL RESERVE SYSTEM -3- affected the bank merger trend in any manner whatsoever. We should point out, however, that in two or three instances in the past two years, where a small up-state New York bank was in process of being acquired by a larger bank, an interlocking relationship was expedient or desirable and was permissible under exception numbered (5) of the Act. It is possible, therefore, that a similar emergency situation might arise in the case of two banks located in the same town or village, or in contiguous or adjacent towns or villages, so that we feel the sub-section should be retained." Section 21203(d) makes four exceptions applicable to Private bankers. These exceptions were inserted by the Board in ?..11 attempt to correct the effects of a change made in the wording of Ole first part of the first sentence of section 8 just before the Provision was enacted, which had the effect of making the provisions ( 2f section 8 applicable to a private banker to the same extent that 1, 6heY were applicable to an officer, director, or employee of a member !fank. Of the four exceptions contained in this sub -section, the last Oiree do nothing except place private bankers, as far as possible, n , . E111 equal footing with officers, directors, and employees of member ?anks by permitting private bankers to serve institutions not located : 311 the same city, town, or village, institutions not engaged in the ;axle classes of business, or institutions under common ownership. here appears to be no reason for eliminating these three exceptions, and it is assumed that your letter does not refer to them. The first of these four exceptions, as you pointed out in t°1 r .1r letter, was inserted in order to avoid what at the time appeared be a Constitutional question, namely whether Congress could forbid 17 Interlocking relationship between a private banker and a nonmember , 44k. Later Supreme Court decisions make it seem likely that the :?urts would uphold the power of Congress to enact such a prohibition therefore the elimination of this exception might not leave the u tratute open to successful attack on Constitutional grounds. However, ,timinating it would be discriminatory because that would prohibit a banker from serving a nonmember bank, although a director, 110ficer, or employee of a nonmember bank may serve any number of other itrunember banks. Moreover, the question appears to be academic since seems that the exception is not being used. The above information indicates, as to some of the Pror 4 ti_ -sions„ that they are of no practical significance at the present thule since they are not being used and, as to others, that eliminating would be discriminatory. In the circumstances the Board believes BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM he Honorable Emanuel Celler that it would not be necessary or advisable to eliminate these provisions at this time. The Board is glad to have had this opportunity Of being of some assistance to you in your current study of section 8. Sincerely yours, (Signed) C. C. Balderston C. Canby Balderston, Vice Chairman. 948 L9t BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 11 5/24/62 WASHINGTON 25, D. C. 44,1 0 ADDRESS OFFICIAL CORRESPONDENCE 4. ? '' ' 474WW-P" TO THE BOARD t1444**4 ' June 5, 1962 Dear Sir: The Board and the F(Ideral Deposit Insurance Corporation have 'leoided to expand the collection of branch deposits data as of June 30, , 962. The expanded program will require reports of deposits by cities lor branches outside the head office city of the parent bank rather than le county totals which have been collected biennially for many years. he survey conducted by the Reserve Banks in January 1962, in response ' 4) the Board's letter of December 18, 1961, indicated that city data !ere readily available from the records of most banks and the additional ?Porting burden imposed on the banks would be modest, provided that suf,idient advance notice was given for an end-of-month report date, The ' Qmptroller of the Currency has decided that his Office will not partici.1) t, te in this program; thus, it will be necessary for your Bank to collect bu?se branch deposits data from all member banks. Similar reports are 0g Co lected from nonmember banks by the Federal Deposit Insurance l collected ' °rPoration. e Listing are being prepared here (sample form attached) which ue available for the Reserve Bank to transmit to member banks that °ellerate branches outside the head office city. The listings will inarlucl,e the location of each branch, space for reporting the deposit items, all"' a column for the reporting bank to check whether branch locations ro°1411 in the listings are correct. These listings are expected to be vallarded to the Reserve Banks about June 15 but, unfortunately, they be based on information available here as of the end of April, and UP-dating may be necessary at your Bank. Vill Upon receipt of these listings, they should be forwarded the re_ member banks affected in order that they may make arrangements tolTrt the deposit data as of June 30, 19623 advance notice may be if you feel that this will be helpful. The deposit items the uanks — ea-me as collected as of June 15, 1960g to to given are 4 10 Demand deposits of individuals, partnerships, and corporations. (Ccvresponds to item 13 in current report of condition.) Time deposits of individuals, partnerships, and corporations. (Corresponds to item 114 in current report of conditicn.) 30 Reaonabl `ePorts. Other deposits. (Corresponds to items 159 16, 179 and 18 in current report of condition.) extensions of time may be granted the member banks to prepare these The information will be used to tabulate data to be published in the let, "Distribution of Bank Deposits by Counties and Standard Metropolitan tr e8$" which was last collected and published as of June 15, 1960. Reporting the 8 should again be informed that, although no further publication is anticipated, etc, information is being collected with the understanding that it will be conpublic information with respect to applications for mergers or branches '-ulder the Bank Holding Company. Act. 4 trig The Bureau of the Budget has suggested that substantially the followstatement be included in the letters to member banks: The essential purpose of this inquiry is to obtain informaon tion the deposits of branches outside the city of the head office, D'ouped by cities or other incorporat3d places. Because many banks find it more convenient to supply individual branch data, all I , !Idividual branches known to lie outside the city of your head office ?aye been prelisted on the form. If it is not practicable to furnish Individual branch data group the branches by cities or other incorPorated areas and indicate on the form which branches are combined. Branches in unincorporated places, however, should be shown separately uslng estimates as necessary. If any branches listed as outside the head office city are ..ctually located inside the head office city limits, please correct 'Ile listing and includfl deplsits of that branch with the head office c-ttY total conversely, if any branch located outside the head office citY is not listed, please insert the name and location of the branch d show its deposits separately or combine with other branches accordng to city in which actually located. r Very truly. yours, ^ Merritt Shermadl Secretary.--; Ehclosure 11° THE PRESIDENTS OF ALL FEDEIAL RESERVE BANKS 7 ............ BOARD OF GOVERNORS ottuttitt g. 44 Oil CO OF THE kr ° FEDERAL RESERVE SYSTEM Item No. 12 5/24/62 • * A* 44 4% WASHINGTON 25. D. C. 4 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD 1,:kM33. 4 ')44 -4444** May 24, 1962 The Honorable Erie Cocke, Chairman, Tederal Deposit Insurance Corporation, Washington 25, D. C. Dear Mr, Cocke: The Board is glad to know from your letter of May 21, 1962, that the Federal Deposit Insurance Corporation will undertake the collection of branch deposit data by city for insured nonmember banks, Provided such data are collected from all other insured banks. Although the Comptroller of the Currency has indicated that hi8 „ office will not participate in this project, the Board of Governors proceed to request the branch deposit data by city from all member vuanks as of June 30, 1962. The figures thus compiled by the Board, 1en combined with those for insured nonmember banks, will provide the ' omprehensive statistics sought for all insured banks. 2 The Board appreciates the willingness of the Corporation to co operate in the collection of this information. Enclosed is a draft a proposed letter to the Reserve Banks regarding collection of the iltal and the Board has instructed its staff to confer with representapr " 8 of your organization regarding report forms (draft attached) and °cedures. You will note from the proposed letter that reporting th 8 would be given advance notice of the request in order to minimize -e reporting burden. f Sincerely yo C Merritt She Secretary : - 41°1°811res 962 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 13 5/24/62 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD May 24, 1962 CONFIDENTIAL (FR) Mr. Charles J. Scanlon, President, Federal Reserve Bank of Chicago, Chicago 90, Illinois. Dear Mr. Scanlon: The Board of Governors has approved, effective June 1, 1962, the following minimum and maximum salaries for the respective officer salary groups at the Federal Reserve Bank of Chicago: Group Minimum Maximum A $19,000 15,000 13,000 10,000 $27,000 22,500 19,500 16,000 The salary ranges approved by the Board are those fixed by your Board of Directors as reported in your letter of May 11, 1962. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 14 5/24/62 WASHINGTON 25, D. C. * ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD May 24, 1962 9IDENTIAL (FR) Ir. Watrous H. Irons, President, Pederal Reserve Bank of Dallas, Dallas 2, Texas. Dear Mr. Iron The Board of Governors approves the appointment of Mr. mas R. Sullivan as the officer in charge of the Examination ,?Partment at the Federal Reserve Bank of Dallas, with tne title of t e President, effective June 1, 1962, in accordance with the action ' Alcen by the Board of Directors as reported in your letter of Nay 11, 1 962 116D to tk The Board of Governors also approves the payment of salaries h4 following officers of the Federal Reserve Bank of Dallas beginng the effective date shown through December 31 1962, at the rates ' Ildicated• Name Annual Salary Title 1° 1962 E. Coldwell Vice President and Economic Adv er21101 000 1""tfeettve June 1, 1962 11-11314as R. Sullivan Vice President tive August 1 1962 41Ph T. Green Vice President :t17,500 Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. 1954 BOARD OF GOVERNORS ett*** 4 W * OF THE FEDERAL RESERVE SYSTEM Item No. 15 5/24/62 WASHINGTON 2,O. c. ADDRESS °maw_ CORRESPONDENCE TO THE BOARO 4** May 280 1962 Mr. John L. Nosker, Vice President, Federal Reserve Bank of Richmond, Richmond 13, Virginia. Dear Mr. Nosker: In accordance with the request contained in your letter of May IS, 1962, the Board approves the appointment of Claude R. Taylor as an assistant examiner for the Federal Reserve Bank of Richmond, effective today. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE SOv FEDERAL RESERVE SYSTEM Item No. 16 5/24/62 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD May 28, 1962 COUIDENTIAL (FR) Mr. Leland Ross, Vice President, Federal Reserve Bank of Chicago, Chicago 90, Illinois. Dear Mr. Ross: In accordance with the requests contained in your letters of May 16, 1962, the Board approves the appointment of Laurence E. Corr, Franklin D. Dreyer, Byron J. Loving, and 0. Jay Tomson„ at present assistant examiners, as examiners for the Federal Reserve Bank of Chicago, effective July 20 1962. It is noted that Mr. Tomson is indebted to Farmers Savino sank, Stratford, Iowa, a nonmember batik. Accordingly, the Board's approval of the appointment of Tomson is given with the understanding that he will not Participate in any examination of that bank until his indebtedness has been liquidated. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary.
@FedFRASER