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Minutes for
To:
May 26, 1960
Members of the Board
From: Office of the Secretary
Attached is a copy of the minutes of the
130ard 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
!linutes in the record of policy actions required to
°e 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
trile Secretary's Office. Otherwise, please initial below.
.
tr you were present at the meeting, your initials will
Illdicate approval of the minutes. If you were not present,
Y°11r initials will indicate only that you have seen the
rnirlutes.
Chm. Martin
Gov. Szymczak
Gov. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
Gov. King
Minutes of the Board of Governors of the Federal Reserve System
4 Thursday, May 26, 1960.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
The Board met in the Board Room at 10:00 a.m.
Balderston, Vice Chairman
Mills
Robertson
Shepardson
King
Mr. Sherman, Secretary
Miss Carmichael, Assistant Secretary
Mr. Hackley, General Counsel
Mr. Farrell, Director, Division of
Bank Operations
Mr. Solomon, Director, Division of
Examinations
Mr. Connell, Controller
Mr. Harris, Coordinator, Office of
Defense Planning
Assistant General Counsel
Chase,
Mr.
Mr. Rudy, Special Assistant, Legal Division
Mr. Donald Farrell, Assistant Counsel
Mr. Kakalec, Assistant to the Controller
Item circulated to the Board.
The following item, which had
bee4 eirclaated to the Board, and a copy of which is attached to these
8
as Item No. 1, was approved unanimously:
Letter to the Comptroller of the Currency recommending
favorably with respect to an application to organize
a national bank in Delaware Township, New Jersey.
kr,,
APPlication of California Bank to establish a branch
(Item No. 2)
Qmon reported that, pursuant to the understanding at the meeting
04 a
M -Y 25) he talked by telephone with Mr. Millard, Vice President,
Nleral
Reserve Bank of San Francisco, regarding the application of
41411°1141s Bank, Los Angeles, California, to establish a branch in the
of
Nae
Industry, on which the Reserve Bank had recommended favorably
the Board's Division of Examinations in a memorandum dated May 12,
5/26/60
-2-
1960) had recommended unfavorably.
Mr. Solomon said that Mr. Millard
had. no strong feeling regarding the application, although he was of
the opinion
that the proposed stockyards might well be established
lathe City of Industry, in which event the additional branch would
then seem quite appropriate.
that
Mr. Millard had indicated, however,
in view of the uncertainties as to the time when the stockyards
44011; be established, the Reserve Bank would have no strong objection
t43 ClerliEti of the application at the present time.
Thereupon, the application of California Bank was denied. A
eerP)
'Of the letter sent to California Bank pursuant to this action
is attaehed as Item No. 2.
Letter to the Comptroller of the Currency regarding classifiesti
?21,-I4me deposits" under Regulation D (Item No. 3).
In line
111t4 the discussion at the Board meeting on May 25, there was distributed
re
da'aft of a letter to the Comptroller of the Currency regarding the
ciklest,
'on whether dealers' reserve or differential accounts may be
ti
"'fled as "time deposits" for the purpose of computing reserves
1144r
b
4‘egillatiOn
DI Reserves of Member Banks.
The proposed letter
1411441 indicate that it would not be feasible to attempt to establish
EtilY general rule as to when such accounts may properly be classified as
time
tt
dePosits
Mr. Hackley stated that the revised draft emphasized
4 ttelaarly
the variation of dealers' reserve or differential accounts
1920
5/26/60
individual cases, and this variation was the basis for indicating
tIlat it would not be feasible to establish any general rule regarding
811cth accounts.
The letter was approved unanimously and is attached as Item
No.
Messrs. Chase and Donald Farrell then withdrew from the meeting.
Application by The Marine Corporation for acquisition of stock
(14.'LL2pd 5).
There had been distributed a memorandum dated May 24,
163, from the Legal Division regarding an application by The Marine
'vvration, Milwaukee, Wisconsin, for approval of acquisition of stock
or b
'0,Ples Trust & Savings Bank
Green Bay, Wisconsin.
The memorandum
P°inted out
that a Tentative Decision that would approve the application
Vas
Published in the Federal Register on May 7, 1960, and the 15-day
I3er
provided for filing comments on the proposed action expired on
MA
23
No comments were received during this period.
•
Attached to
m
era°randum were drafts of an Order approving the application under
th t
841k Holding Company Act, together with a Statement and a press release.
Mr. Hackley noted that the proposed Order was in the same form
at 4,
Tentative Decision.
Unanimous approval was then given to the Order approving the
cation by The Marine Corporation, Milwaukee, Wisconsin, for acquisi-
°f
to
the
stock of Peoples Trust & Savings Bank, Green Bay, Wisconsin, and
accompanying Statement, copies of which are attached as Items 4
tthd
It was understood that the Order and Statement would be released
t
5/26/60
to tie
the press in the regular manner and that notice would be published
ibt the Federal Register.
Mr. Rudy then withdrew from the meeting.
Decentralization of storage of currency (Items 6 and 7).
Mere had been distributed a memorandum dated May 25, 1960, from
Mr* Harris regarding a request from the Federal Reserve Bank of Cleveland
' rnake a partial decentralization of the storage of currency as a
13reParedness measure in connection with the emergency planning program.
Ithe
-u.u.K proposed that currency be stored in vaults at eight comerbanks located in the Cleveland District.
It vas noted in the
rileal°1-"dum that decentralization of supplies of currency was in line
Itith the policy approved on January 22, 1960, by the President of the
d
eStates.
Alternative draft letters that would approve the proposal
"
4
been distributed prior to the meeting.
By way of background, Mr. Harris pointed out that this was the
tiltt
--stance in which a request for decentralization of currency
14,0
--6.e had been presented to the Board for approval.
b
een.
While there had
of the program over a period of time, presentation of
discus ions"
Illest for Board authorization had been deferred pending the deteration
Nati
Of the Government's policy on the decentralization of currency
4.,
"ne reconsideration of related System policies, such as whether
the e
should be flexibility in the implementation of the policy among
41stri
4-tts, whether the currency stored with Cash Agents should be issued
Or
Utitesued currency, and whether it would be appropriate for Reserve
5/26/60
-5-
to absorb the cost of major improvements to Cash Agents' vault
fac
ilities.
Mr. Harris noted that these questions had been resolved
641d that it now seemed appropriate for the Cleveland Reserve Banks
'
l eqtzest to be considered.
He observed that three separate requests
1tiv°1ving various phases of the proposal had been received from the
Cleveland Bank
and that they were all included in the present proposal
hich
came by telephone and had been confirmed by telegram.
Mr. Harris
rioted that the Cleveland Bank was hopeful that the Board might approve
the
Proposal this week.
Governor Robertson said that the Cleveland Bank had gone further
th841 the other Reserve Banks in plans for decentralizing currency
'ge.
st"
He hoped the Board would approve the Cleveland Bankts proposal
"nd a copy of the letter granting that approval to the Presidents
r all Reserve
Banks encouraging them to take similar steps.
Mr. Solomon stated that he had discussed with Mr. Harris the
eland Bank proposal and it appeared satisfactory from the standpoint
"controls
.t•tottla
that would be established.
He noted that the currency
he stored at individual banks in sealed chests or vault compartkeil ts
and that combinations for the compartments would be placed in
deposit boxes in other banks, thereby providing additional security.
In response to a question from qo ernor Shepardson, Mr. Harris
ttbat
ellted that the decentralized storage program involved issued currency,
t4kt
Bank rather than Federal Reserve Agentta cash.
If unissued
5/26/60
-6-
clIrrencY were involved, he noted that there would be the complication
°Irhaving it
issued by the Agent in the event of an emergency.
Replying to a question from Governor Shepardson, Governor
1(31)erts0n said that there appeared little likelihood that a currency
t(Drage center would ever be established at Fort Riley, Kansas, as had
1)El suggested earlier.
As a substitute, he indicated that a proposal
tor establishing a storage area in a midwest salt mine was being explored
Illi might be submitted for the Boardts consideration.
Such an area,
he r .._
c4'a, would afford a relatively inexpensive way of providing good
etorp,
-6e facilities not only for currency but also for essential records.
Governor Shepardson then inquired as to the status of the
ator
age center at the new Salt Lake City Branch building and Mr. Farrell
state
a that some difficulty had been encountered in arranging to have
1111 Reserve Banks store currency at that branch.
1311143
Some of the Reserve
Preferred storing currency in their own districts because of the
nsPortation problems involved in shipping currency to Salt Lake City.
A rItN
-'413Cr
of the other Reserve Banks were lukewarm in regard to storing
there.
Mr. Harris noted that the Boardts letter of March 14, 1960, to
*residents of all Reserve Banks concurred in the view that there
hia
110 rleed for uniformity among the Reserve Banks with respect to
1)111(18itioning of cash.
However, adequate decentralization of supplies
c)tll'IsericY was one of the basic planning policies of the Government,
4asid, and
while there was flexibility as to procedure, it would be
5/26/60
-7-
clelle to encourage the Reserve Banks to arrange for decentralizet1011 of the storage of currency.
Unanimous approval was then given to a letter to President
'13-t411 of the Federal Reserve Bank of Cleveland in the form of attached
with the understanding that a copy would be sent to the
1)residents of all Federal Reserve Banks with a transmittal letter sugge8ting that consideration be given to some decentralization of currency.
A
`TY of the transmittal letter to all Reserve Bank Presidents is attached
e.4
'''Qra
No
7
Mr. Fauver entered the room during the foregoing discussion.
Budget experience report as of April 30, 1960.
There had been
:1 144.
-uributed
a memorandum dated May 17, 1960, from the Office of the
C°11t
roller submitting a budget experience report as of April 30, 1960,
°Illaining the status of selected budgeted projects as of that date.
Governor Shepardson stated that in the past the Controller's
oft,
'ce had prepared for the consideration of the Board midyear budget
'
'lance reports containing considerable detail on the total budget
°Derai.,
"On. At his request the Controller's Office had prepared a more
eCte
'Be review as of April 30 relating especially to major projects,
both
l'elgular and special. Governor Shepardson said he thought the
llott
ight prefer to have a brief report of this type on a monthly
1441
Mther than the detailed midyear report.
Mr. Connell said that preparation of brief monthly reports in
Altte
Qf a detailed midyear report would result in a saving of time in
1
5/26/6o
-8-
the Office of the Controller. Also, information would be readily
Itilable each month as to the status of individual projects.
"
Governor Mills stated that he would favor the monthly reports
it the final year-end budget report, which sets forth comparisons with
Other years and points out the direction in which the Board's work is
Itc)ving, was not abandoned.
After a brief discussion it was agreed that the midyear budget
exPerience report would be discontinued and a concise monthly report
/41:)111d be prepared and distributed to all Board members.
Continental Bank and Trust Company case.
Pursuant to discussion
the Board meeting on April 26, 1960, it had been understood that
e°1118ideration would be given the latter part of May to the administrative
lIrcleeecling regarding capital adequacy instituted by the Board with
t"Pect to The Continental Bank and Trust Company, Salt Lake City, Utah.
1°/rettor Balderston noted that it had been planned to schedule the dise141410n for May 27, and he then suggested reasons why it would be
cleat
able to postpone consideration of the case. He added that this
kat
ter had been discussed with Chairman Martin, who agreed.
Following a discussion, during which Mr. Hackley said that
Mrs Solomon and he believed that presentation and consideration of this
e4Be by the Board was likely to require more than one meeting, it was
1111(ler tood that the matter would not be brought up for consideration
‹f but that it would be scheduled for a later meeting, preferably
004
etter Governor Shepardsonts return from Europe early in July.
5/26/60
-9The meeting then adjourned.
Secretary's Note: Governor Shepardson today
approved on behalf of the Board the following
items:
Memorandum dated May 24, 1960, from Mr. Johnson, Director,
lsion of Personnel Administration, recommending the appointment of
eali;;IY J. Hart as Clerk-Stenographer in that Division, with basic
ual salary at the rate of $30850, effective the date she assumes
her
Memorandum dated May 25 1960, from Mr. Fauver, Assistant to
thea)3
04
oard, recommending that a program, including lunch, be arranged
ilrm...11171e 9, 1960, for 10 trainees currently enrolled in the training
ram of the International Bank for Reconstruction and Development.
Ite
Letter to the Federal Reserve Bank of Philadelphia (attached
L
/".12.,..../.3) approving the appointment of William F. Walsh as assistant
—'dter.
t
Letter to the Federal Reserve Bank of Minneapolis (attached
approving the appointment of Lester G. Gable as examiner.
Secretary
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 1
5/26/60
WASHINGTON 25. O. C.
ADDRES•
orriciAL
CORRESPONDENCE
TO THC BOARD
May 26, 1960
eceOtroller of the Currency,
Tre
48urY Department,
Flaellington 25, D. C.
Attention Mr. Hollis S. Haggard,
Deputy Comptroller of the Currency.
t'ear Mr. Comptroller:
Reference is made to a letter from your office dated
riati 18, 1960, submitting copies of an application to organize a
by flel bank in Delaware Township, Camden County, New Jersey, signed
rer:L_ Joseph M. McCrane, Jr., and associates, and requesting a
'
44mendation as to whether or not the application should be approved.
A report of investigation of the application made by an
th-E7-ner for the Federal Reserve Bank of Philadelphia indicates that
45(1(11)!?p0nents expect to provide a minimum capital structure of
/143U00 for the bank instead of $250,0001 as shown in the application.
Lito
,
caPital structure would appear to be adequate. Based upon the
th
ttion available with respect to the prospective development in
hatitea, it appears that there will be sufficient need for banking
tatholties and that the proposed bank could operate profitably.
N erlilgh only one of the proposed directors has had actual banking
ikter enoe, the group as a whole represents diversified business
q e8t3 and is well regarded in the community. It is understood that
'8e relationship is to be maintained with First Camden National
rtird Trust Company, Camden, New Jersey. The Board of Governors
ellds favorable consideration of the application.
1r a.
The Board's Division of Examinations will be glad to discuss
cleq;;P
.ects 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. 2
5/26/60
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 261 1960
Californiaard of Directors,
%;,
Bank,
Angeles, California.
Gentlemen:
Reference is made to your request, submitted through
the
Federal Reserve Bank of San Francisco, for permission to
establish a branch in the vicinity of the intersection of Valley
oulevard
and Hambledon Avenue, City of Industry, California.
According to available information there is no assurace that
t
the proposed branch would be placed in operation in
he near
future and it appears that the establishment of the
11,,nch is contingent upon the relocation of the Los Angeles
J.Z•4°n Stock Yards in City of Industry. Under such circumstances,
11,;: le the judgment of the Board of Governors that approval of the
not be justified.
The Board will be willing to consider another application
vo„ when more definite assurance can be given that the branch
u-lx1 be established promptly.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
4
BOARD OF GOVERNORS
itta.404,
4714
OF THE
FEDERAL RESERVE SYSTEM
Item No.
3
5/26/60
WASHINGTON 25, D. C.
ADORCIBB OFFICIAL CORRESPONOCNCE
TO THC BOARD
'
Itt,4tlast
'44o4"
May 26, 1960.
c ionorable Ray M. Gidney,
Iel
:troller of the Currency,
gash4
-4-rigton 25, D. C.
PI
1)ear Mr. Gidney:
This is in reply to your latter of March 14, 1960, referring
the int
erpretation of the Board published in 1960 Federal Reserve
serv:7ih 265, regarding the classification of so-called dealers' reD111,1)Wr differential accounts as deposit liabilities for reserve
tiv b es and inquiring as to the circumstances under which such accounts
e
as "time deposits" for such purposes.
to
Ordinarily, of course, such an account would not be in such
to constitute a "time certificate of deposit" under Regulation
depos4,1*ould it normally be eligible for classification as a "savings
ttoria‘
- 4" which is available only to individuals and nonprofit organizaliell I In order for such an account to constitute a "time deposit,
tiqtia:ccount" within the meaning of the definition of that term in
.
tt°n D, (1) the account must be evidenced by a written agreement
betwe
At,oiria
'll the depositor and the bank, and (2) this written agreement must
for either a stated maturity of at least 30 days or for 30 days'
en notice of withdrawal from the account.
'41m
The form taken by dealers' reserve or differential accounts
'
es vddely, as you know, in individual cases. Consequently, the
tIrCt be
,a lieves that it would not be feasible to attempt to establish any
pier
t̀'eDoattarille as to when such accounts may properly be classified as time
0.) open account. The circumstances of each case, including the
,the agreement between the bank and the dealer, would need to
qed 4.ciered in order to determine whether the account complies with
tlo
nitlon of a time deposit, open account, set forth in Regula-
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
34:1)
Item No.
UNITED STATES OF AMERICA
4
5/26/60
BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D. C.
MM.
1
NMI.
In the Matter of the Application of
1 THE MARINE CORPORATION
for prior approval of acquisition of
eting shares of Peoples Trust & Savings
v
ank, Green Bay, Wisconsin
,
ORDER APPROVING APPLICATION UNDER
BANK HOLDING COMPANY ACT
There having come before the Board of Governors pursuant
to section 3(a)(2) of the Bank Holding Company Act of 1956 (12 USC 1843)
and
section 4(a)(2) of the Board's Regulation Y (12 CFR 222.4(a)(2)),
an
PPlication on behalf of The Marine Corporation, Milwaukee,
Ilisconsin, for the Board's prior approval of the acquisition of
80 Per
cent or more of the 5,000 voting shares of Peoples Trust &
Savings Bank, Green Bay, Wisconsin; a Notice of Tentative Decision
r'ererring to a Tentative Statement on said application having been
PlIblished in the Federal Register on May 70 1960 (25 Federal Register
420\
J; the said Notice having provided interested persons an
°131:1°rtunity, before issuance of the Board's final order, to file
c6Jections or comments upon the facts stated and the reasons
Illdicated in the Tentative Statement; and the time for filing such
Obj
'
etions and comments having expired and no such objections or
corrim_
11..te having been filed;
-2-
IT IS HEREBY ORDERED, for the reasons set forth in the
Boardts Statement of this date, that the said application be and
hereby is granted, and the acquisition by The Marine Corporation
Of 80 per cent or more of the 50000 voting shares of Peoples
Trust & Savings Bank, Green Bay, Wisconsin, is hereby approved,
Provided that such acquisition is completed within three months
from the date hereof.
Dated at Washington, D. C., this 26th day of May 1960.
By order of the Board of Governors.
Voting for this action: Governors Balderston, Mills,
Robertson, Shepardsonl and King
Absent and not voting:
Chairman Martin and Governor Szymczak
signed) Merritt Sherman
(SEAL)
Merritt Sherman,
Secretary.
Itixia No.
BOARD OF GOVERNORS
5
5/26/6o
OF THE
FEDERAL RESERVE SYST7'i
APPLICATION BY THE MARINE CORPORATION, MILWArKEE, WISCONSIN,
FOR PRIOR APPROVAL OF ACQUISITION OF VOTING SHARES OF
PEOPLES TRUST & SAVINGS BANK, GREEN BAY, WISCONSIN
STATEMENT
The Marine Corporation, Milwaukee, Wisconsin ("Marine"),
a bank holding company, has applied, pursuant to section 3(a)(2)
Of the Bank Holding Company Act of 1956 ("the Act"), for the
Board's prior approval of the acquisition of 80 per cent or more
Or the
5,000
voting shares of Peoples Trust & Savings Bank,
4een Bay, Wisconsin ("Peoples").
Views and recommendations of the Commissioner of Banks.
As required by section 3(b) of the Act, the Board forwarded notice
f the application to the Commissioner of Banks for the State of
Wis
.
eunsin. The Commissioner of Banks, however, submitted no views
re,
tArding the application.
Statutory factors. - Section 3(c) of the Act requires
the }3
oard to take into consideration the following five factors:
1) the financial history and condition of the
holding company
1.1
ank concerned; (2) their prospects; (3) the character of
the4
4..r management; (4) the convenience, needs, and welfare of the
eolm"
unities and area concerned; and (5) whether or not the effect
-2-
(/If
)
P
I_0 111
Of the acquisition would be to expand the size or extent of the
bank holding company system involved beyond limits consistent with
adequate and sound banking, the public interest, and the preservation of competition in the field of banking.
Discussion. - Marine, the smallest of the three bank
holding companies in Wisconsin, currently has five subsidiary
banks in or near Milwaukee.
The largest bank of t,:Lc.. group is
Marine National Exchange Bank, located in the business center
of Milwaukee.
Peoples is located in downtown Green Bay and its
Primary service area includes the city of Green Bay, and the
following adjacent towns:
}1°Il8.rd.
Ashwaubenon, Allouez, Preble, and
The area comprises approximately 25 square miles, is
Prinlarily
urban in character, and has an estimated population
Of 65,000. Peoples is the second largest of six banks serving
the area and is approximately one-third the size of the largest
The financial history and condition, prospects, and
allagement of both Marine and Peoples are satisfactory.
Marine's application offers its services in securing
triahagement succession for Peoples, and proposes to have Peoples
Provide several additional banking services, if the application is
gran
ted. On the basis of available information, it appears that
Pe
°Ples is serving the convenience and needs of its area in a satisfacto17
manner and that acquisition by Marine is not the only solution
_3_
to the problem of management succession.
These considerations
would not therefore have a material effect on the convenience,
needs, and welfare of the community and area concerned, but would
not be inconsistent with approval of the application.
Peoples is located more than 100 miles from Marine's
subsidiary banks and outside of their service area.
five other banks operating in Peoples
There are
primary service area.
With the acquisition of Peoples, Marine would control one of
SiX banking
offices (16.7 per cent) and $14,9085000 (16.1 per cent)
Of the $92,626,000 total deposits of individuals, partnerships,
and corporations (IPC) as of December
°Perating in that area.
holds
31, 1959, of all banks
Only Marine's largest subsidiary bank
any 1PC deposits from the primary service area of Peoples.
These deposits from Peoples' area are only 0.3 per cent of that
subsidiaryts
deposits and are equal in amount to 2.3 per cent
q the
total 1PC deposits of Peoples.
It does not appear that the acquisition proposed
wcalld result in an undue concentration of banking resources or
Pl'ciduce circumstances which would have an adverse effect on
cOMPetition.
A consideration of all the facts in this case
dc
'
es not indicate that the proposed acquisition would expand
the
size or extent of banking resources under Marine's control
beY0
n- limits consistent with adequate and sound banking, the
141hlie interest, and the preservation of competition in the
tleld of banking.
-4Conclusion. - The above views were incorporated in the
Tentative Statement issued in connection with the Notice of
Tentative Decision published in the Federal Register on May 71
1960 (25 Federal Register 4120)1 affording interested persons an
oPportunity to submit comments on, or objections to, the Board's
P1'0Posed action.
No comments or objections were received.
Viewing the relevant facts in the light of the general
PUrposes of the Act and the factors enumerated in section 3(c),
it is the judgment of the Board that the proposed acquisition
140Uld be consistent with the statutory objectives and the public
interest and that the application should be approved.
14aY 26, 1960.
BOARD OF GOVERNORS
OF THE
Item No.
FEDERAL RESERVE SYSTEM
6
5/26/60
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 26, 1960.
W. D. Fulton, President,
c!l ial Reserve Bank of Cleveland,
--e
veland 15 Ohio.
1)e41711r.
Fulton:
The Board has approved the proposal of the Federal Reat0,7 Bank of Cleveland to make a partial decentralization of the
Dr 'age of currency as a preparedness measure. The terms of the
tel v°a1 as conveyed to the Board by telephone and confirmed by
Cl May 18, 1960, are set forth below.
Currency is to be stored in the vaults of selected emer114710,,w Cash Agents and at the Bank's Records Storage Center in
'44tS as follows:
Cash Agents
•
The Farmers National Bank and Trust Company
of Ashtabula, Ashtabula, Ohio
First National Bank and Trust Company of Lima,
Lima, Ohio
$ 9,500,000
8,000,000
First National Bank of Mansfield,
Mansfield, Ohio
12,000,000
The Toledo Trust Company,
Toledo, Ohio
20,0000000
The First National Bank of Zanesville,
Zanesville, Ohio
The Winters National Bank and Trust Company
of Dayton, Dayton, Ohio
5,000,000
15,000,000
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Mr. W. D. Fulton
-2
First National Bank and Trust Company of
Lexington, Lexington, Kentucky
$ 5,000,000
Records Storage Center
The Athens National Bank,
Athens, Ohio
2,750,000
$77,250,000
cAltThe procedure for effecting the storage is to be carried
b
..„
eoUnder the supervision of two officials of the Bank and a repre'
aye of the Audit Department. The currency will be placed in
eh" ,
ts or vault compartments. The two officials and Auditor's repre'ft
thevative will verify the amount in each chest or vault compartment,
km 1111 set the combination, lock and seal the chest or vault coinent, The Bank's Auditor or his representative will test the
but and seal. The combination will not be given to the Cash Agent,
t4 Will be placed in a safety deposit box in another bank, within
ke 84me vicinitr, with instructions that the Cash Agent may have
Us thereto only in the event of an actual attack.
In approving this proposal, the Board noted that it was
141A
thaiecordance with the Government's emergency planning policies,
the ethe facilities and protective devices of the banks in -which
tizt urrency is to be stored are adequate, that no unusual expendiare involved, and that the rental of vault space is reasonable.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
A •(
TI(1°1
BOARD OF GOVER NORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
448.
Item No. 7
5/26/60
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 27, 1960.
plinDENTIAL (FR)
D"ar Sir:
As you know, one of the basic features of the Emergency Pre—
lredness Program of the Federal Reserve System is that provision should
e made for the continuance of cash operations in the event of an attack
etell'ency. The 1955 report of the Committee on Emergency Operations
Provides "Federal Reserve Banks intending to lodge currency with agents
°r key banks in advance of an emergency should obtain the prior approval
°f the Board of Governors."
t
Heretofore, the consideration of proposals to decentralize
e"rency were deferred pending the determination of the Government's
P°11-°Y on the decentralization of currency and the reconsideration of
rt:elated System policies; such as, whether there should be flexibility in
sltlfe implementation of the policy among districts; whether the currency
wh°red with Cash Agents should be issued or unissued currency, and
„ether it would be appropriate for Reserve Banks to absorb the cost of
"Jar improvements to Cash Agents' vault facilities.
The above policy matters having been resolved, the Board con—
ered and approved a proposal made by the Federal Reserve Bank of
eveland for a partial decentralization of the storage of currency.
t rIce this is the first action of the Board on such proposals, it was
8"211ght that the Board's letter of May 26, 1960, to the Cleveland Bank,
:
4ing forth the terms of the Bank's proposal and the Board's approval,
be of interest to all Banks. A copy of the letter is enclosed.
n
All Banks which contemplate some decentralization of currency
it a
dvance of an emergency and are prepared to submit their proposals
'414, are invited to do so. It is suggested that other Banks may wish
give this matter further consideration.
Very trul
."
Eriel°eure
Merritt Sh rman,
Secretary.
IL PRESIDENTS OF ALL FEDERAL RESERVE BANKS
BOARD OF GOVERNORS
Item No. 8
OF THE
5/26/6o
FEDERAL RESERVE SYSTEM
WASHINGTON 25, O. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
Mr. Joseph R. Campbell, Vice President,
Federal Reserve Bank of Philadelphia,
Philadelphia 1, Pennsylvania.
Dear Mr. Campbell:
In accordance with the request contained
in your letter of May 20$ 1960, the Board approves
the appointment of William F. Walsh as an assistant
examiner for the Federal Reserve Bank of Philadelphia.
Please advise as to the date on which the appointment
is made effective.
'
Very truly yours
(Signed) Kenneth A.
Kenneth A. Kenyon,
Assistant Secretary.
nYon
Item No. 9
BOARD OF GOVERNORS
OF THE
,*
5/26/60
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
4
TO THE BOARD
May 26, 1960
AIR MAIL
111". Frederick L. Deming, President,
Federal Reserve Bank of Minneapolis,
Minneapolis 2, Minnesota.
Dear Mr. Deming:
In accordance with the request contained
in your letter of May 19, 1960, the Board approves
the appointment of Lester G. Gable, at present an
assistant examiner, as an examiner for the Federal
Reserve Bank of Minneapolis, effective May 29, 1960.,
Please advise as to salary rats.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
@FedFRASER