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Minutes for To: Members of the Board From: Office of the Secretary November 2, 1961 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 ,* tiA • •1 Minutes of the Board of Governors of the Federal Reserve System on Thursday, November 2, 1961. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Martin, Chairman Mills Robertson Shepardson King Mitchell Sherman, Secretary Kenyon, Assistant Secretary Molony, Assistant to the Board Fauver, Assistant to the Board Hackley, General Counsel Noyes, Director, Division of Research and Statistics Mr. Solomon, Director, Division of Examinations Mr. Garfield, Adviser, Division of Research and Statistics Mr. Holland, Adviser, Division of Research and Statistics Mr. Koch, Adviser, Division of Research and Statistics Mr. Brill, Associate Adviser, Division of Research and Statistics Mr. Williams, Associate Adviser, Division of Research and Statistics Adviser, Division of International Furth, Mr. Finance Mr. Katz, Associate Adviser, Division of International Finance Mr. Leavitt, Assistant Director, Division of Examinations Mr. Knipe, Consultant to the Chairman Mr. Mr. Mr. Mr. Mr. Mr. Several other staff members from the Research and International Finance Divisions also attended the meeting during the economic presentation that was the first order of business. Projection of economic developments. Messrs. Brill, Weiner, and Sigel of the Division of Research and Statistics presented, with the aid k.J 11/2/61 -2- of graphic material, a possible pattern of economic developments as they might unfold in 1962, based on the patte rn of output and income assumed in connection with the calculation of Federal budget prospects recently released in the form of the Administration's autumn budget review. It was understood that copie s of the text of the presentation and related tabulations would be distributed to the members of the Board. All of the members of the staff except Messrs. Sherman, Kenyon, Fauver, Hackley, Noyes, and Leavitt then withd rew. Items circulated to the Board. The following items, which had been circulated to the membe rs of the Board and copies of which are attached to these minutes under the respective item numbers indicated, were a*ec_l unani mously: Item No. Letters to The Chase Manhattan Bank, New York, New York, appro ving an extension of time in which to establish branches at 2218 Fifth Avenue and 200 East 57th Street. Letter to the Organization Committee, Liberty State Bank of Hillside, Hills ide, New Jersey, granting an extension of time for the bank to accomplish membership in the Federal Reserve System. 1,2 3 Letter to The Morrill and Janes Bank, Hiawatha, Kansa s, approving an investment in bank premises. 4 Letter to the Federal Deposit Insurance Corpo ration regard4.__ -LET the application of First State Bank of Uvalde, Uvalde, Texas, for continuation of deposit insurance after withdrawal from membership in the Feder al Reserve System. 5 11/2/61 -3Item No. Letter to United California Bank, Los Angeles, California, approving an extension of time in which to establish a branch at 10800 Van Ness Avenue, San Francisco. 6 Letter to The Cleveland Trust Company, Cleveland, Ohio, approving the establishment of a branch at 38 Main Street, Chagrin Falls, Cuyahoga County. 7 Letter to Bank of Idaho, Boise, Idaho, approving the establishment of a branch in the vicinity of U. S. Highway 95 immediately outside the corporate limits of Sandpoint. 8 Federal Advisory Council topics. There had been distributed a draft of letter to the Secretary of the Federal Advisory Council suggesting topics for consideration at the meeting of the Council on November 20, 1961, and at the joint meeting with the Board on the following day. Upon review of the proposed letter, there was a discussion regarding the manner of presentation of topics that might be most conducive to fruitful discussion at joint meetings of the Board and the Council. Several suggestions were made as to how the topics for the forthcoming meeting might be phrased with that objective in mind, and it was understood that a revised draft of letter reflecting these suggestions would be prepared for consideration at a subsequent meeting of the Board. The members of the staff then withdrew and the Board went into executive session. Travel authorization. The Secretary was informed later that during the executive session the Board authorized Mr. Young, Adviser to the Board and Director, Division of International Finance, to travel to 11/2/61 Paris, France, during the period November 15-18, 1961, to attend an OECD Ministerial Meeting, with the understanding that actual expenses incurred on the trip, including official entertainment, would be allowed. The meeting then adjourned. Secretary's Note: Pursuant to recommendations contained in memoranda from appropriate individuals concerned, Governor Shepardson today approved on behalf of the Board the appointment of the following persons to the Board's staff, with basic annual salaries at the rates indicated, effective the respective dates of entrance upon duty: Name and title Bonnie Louise Absher, Clerk-Stenographer Rosemary V. Jordan, Clerk-Typist Charles L. Greene, Messenger Annual Salary Division Personnel Administration $3,970 Personnel Administration 3,970 Administrative Services 3,185 - Secretary ( BOARD OF GOVERNORS OF THE 0.4.4****44 FEDERAL RESERVE SYSTEM Item No. 1 te- *?) :R * 11/2/61 WASHINGTON 25. D. C. ADDRESS 4 * 04, orriciAL. CORRESPONDENCE TO THE BOARD *** 44 4, '441004*** November 2, 1961 Board of Directors, The Chase Manhattan Bank, New York, New York. Gentlemen: The Board of Governors of the Federal Reserve System extends to February 19, 1962, the time within which The Chase Manhattan Bank may establish a branch at 2218 Fifth Avenue, Borough of Manhattan, New York, New York. Very truly yours, (Signed) Flizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 324 BOARD OF GOVERNORS 4 izAP(NW:. 4i0 , OF THE . 4b * , .• 0.'.-,-.:' FEDERAL RESERVE SYSTEM i It* * 0 4 A* 10 Item No. 2 11/2/61 WASHINGTON 25. D. C. 0 0 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD November 2, 1961 Board of Directors, The Chase Manhattan Bank, New York, New York. Gentlemen: The Board of Governors of the Federal Reserve System extends to March 30, 1962, the time within which The Chase Manhattan Bank, New York, New York, may establish a branch at 200 East 57th Street, New York, New York. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. * O BOARD OF GOVERNORS *****4 COpie.,,9 A.I41,txi, 1 to * 4Vito OF THE * * * o FEDERAL RESERVE SYSTEM Item No. 3 11/2/61 WASHINGTON 25, D. C. ADOR EBB 0 arriciAt. CORRESPONDENCE TO THE SOARO 44 WO **;41. —441 04*** November 2, 1961 Organization Committee, Liberty State Bank of Hillside, Hillside, New Jersey. Gentlemen: The Board of Governors of the Federal Reserve System extends, to June 12, 1962, the time within which Liberty State Bank of Hillside, Hillside, New Jersey, may accomplish admission to membership in the Federal Reserve System as outlined in the Board's letter of June 12, 1961. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary, C- BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 4 11/2/61 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD * GOV '''t'004401* November 2, 1961 Board of Directors, The Morrill and Janes Bank, Hiawatha, Kansas, Gentlemen: The Board of Governors of the Federal Reserve System approves, under the provisions of Section 24A of the Federal Reserve Act, an additional investment, direct and indirect, of $1502000 in bank premises by The Morrill and Janes Bank, Hiawatha, Kansas, for the purpose of purchasing land, constructing a new bank building, and providing a customers' parking lot. It is understood that a portion of this amount has already been invested in land. It is further understood that the Bank's direct investment in bank premises will be written down to approximately $32,000 when the present bank building is sold. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 3727 BOARD OF GOVERNORS do 4:0 a01},p,s, Aff:=%"'"••••, --T , ' 4 kCi OF THE FEDERAL RESERVE SYSTEM Item No. 5 11/2/61 WASHINGTON 25. D. C. ADDRESS OFFICIAL COkRESPONDENCE TO THE EILIARD *444mo, November 2, 1961 The Honorable Erie Cocke, Sr., Chairman, Federal Deposit Insurance Corporation, Washington 25, D. C. Dear Mr. Cocke: Reference is made to your letter of October 20, 1961, concerning the application of First State Bank of Uvalde, Uvalde, Texas, for continuance of deposit insurance after withdrawal from membership in the Federal Reserve System. No corrective programs that 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. "C. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Rein No. 6 1312/61 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD November 2, 1961 Board of Directors, United California Bank, Los Angeles, California. Gentlemen: The Board of Governors of the Federal Reserve System extends until July 31, 1962, the time within which United California Bank, Los Angeles, may establish a branch at 10800 Van Ness Avenue, San Francisco, California, under the au, thorization contained in the Board's letter of January 19, 1961. . Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 3729 BOARD OF GOVERNORS ,v latt*s}4,4 OF THE 04174'4,4z .* FEDERAL RESERVE SYSTEM Item No. 7 11/2/61 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE 4? *tt, TO THE BOARD altSt 1044, }' 4 November 2, 1961 Board of Directors, The Cleveland Trust Company, Cleveland, Ohio. Gentlemen: The Board of Governors of the Federal Reserve System approves the establishment by The Cleveland Trust Company, Cleveland, Ohio, of a branch at 38 Main Street, Chagrin Falls, Cuyahoga County, Ohio, provided the branch is established within twelve months from the date of this letter. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 3,-;1'4170 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 8 11/2/61 WASHINGTON 25. D. C. * 4 ADORES@ arriciAL. CORRESPONDENCE TO THE SOAR° **4949 November 2, 1961 Board of Directors, Bank of Idaho, Boise, Idaho. Gentlemen: The Board of Governors of the Federal Reserve System approves the establishment of an out-of-town branch by Bank of Idaho, Boise, Idaho, in the vicinity of U. S. Highway 95 (Alternate 10) immediately outside of the corporate limits of Sandpoint, Banners County, Idaho, provided the branch is established within one year from the date of this letter. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary.
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