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Minutes for October 14, 1964. 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. Chm. Martin Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. Mitchell Gov. Daane 1-004ki Minutes of the Board of Governors of the Federal Reserve System on Wednesday, October 14, 1964. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. W. Mr. Martin, Chairman Balderston, Vice Chairman Mills Robertson Shepardson Mitchell Daane Sherman, Secretary Broida, Assistant Secretary Molony, Assistant to the Board Fauver, Assistant to the Board Hackley, General Counsel Solomon, Director, Division of Examinations Leavitt, Assistant Director, Division of Examinations Mrs. Semia, Technical Assistant, Office of the Secretary Mr. Egertson, Supervisory Review Examiner, Division of Examinations Mr. Mr. Mr. Mx. Mr. Mr. Mr. Application of Connecticut Bank and Trust Company (Item No. 1). The application of The Connecticut Bank and Trust Company, Hartford, Connecticut, for permission to establish a branch at Ellington Road and School Street, East Hartford, Connecticut, was approved unanimously. A copy of the letter informing the applicant of this action is attached as Item No. 1. Report on competitive factors (Patchogue-Lake Ronkonkoma, New York). There had been distributed a draft of report to the Comptroller of the Currency on the competitive factors involved in the proposed merger of The National Bank of Lake Ronkonkoma, Lake Ronkonkoma, New York, into The Peoples National Bank of Long Island, Patchogue, New York. Governor Robertson noted that the draft report stated that "the lack of information makes it difficult to reach an accurate conclusion 1o/14/64 -2- with regard to competition," and also contained other indications that the information available was inadequate. In his view, it would be better to say that the Board was unable to give a meaningful report on the basis of the information available than to send a report that drew a definite conclusion on the basis of information that was considered Inadequate. It seemed to him that an assumption underlying the require- ment that reports be requested of other agencies was that those agencies ought to have, or to be able to get, information regarding the competitive aspects of any locality in the country. Here, for example, he believed it would be reasonable to expect that the Federal Reserve Bank of New York would have access to the necessary facts, even if, as he assumed, they were not included in the application. In the ensuing discussion it was brought out that time was a limiting factor in the amount of detail the Federal Reserve Banks could rurnish as background for the reports; that, although it sometimes would be helpful to have additional information, especially regarding the amount of business one bank derived from the service area of another, in many eases the lack of more comprehensive data did not greatly impede the formation of conclusions that were felt to be valid; and that in some eases the relative meagerness of information might reflect the willingness Of one of the other banking authorities to accept applications with only limited details, in which event there might be reason to feel that the Board had no obligation to seek information beyond that offered in the 4PPlication. 4 , , -3- 1o/14/64 changes During further discussion there was agreement on certain the in the language of the text and the conclusion of the report to meet approved Point raised by Governor Robertson, after which the report was Currency. unanimously for transmission to the Comptroller of the The conclusion of the report, as approved, read as follows: While consummation of the proposed merger of l National Bank of Lake Ronkonkoma and Peoples Nationa "home the remove Bank of Long Island, Patchogue, would oma, office protection" from the community of Lake Ronkonk would it permitting entry of offices of other banks, comapparently eliminate some existing and potential petition between them. Pennsylvania). Report on competitive factors (McKeesport-Aliquippa, of the There had been distributed a draft of report to the Comptroller d merger of Currency on the competitive factors involved in the propose vania, and Citizens Western Pennsylvania National Bank, McKeesport, Pennsyl State Bank, Aliquippa, Aliquippa, Pennsylvania. wording of the After a discussion during which a change in the for transconclusion was agreed upon, the report was approved unanimously mission to the Comptroller. The conclusion of the report, as approved, r'ead as follows: Apparently there is little direct competition Citizens between Western Pennsylvania National Bank and intensiState Bank. The proposed merger might result in by fied competition in Aliquippa, in some respects, establishment of a third major bank in the city. It would, however, eliminate from the Aliquippa banking community the only bank domiciled locally and one by Which has demonstrated competitive capability the in s deposit of volume cant signifi acquiring a Period of less than two years in which it has been Operating. -4- 10/14/64 Mr. /bung, Adviser to the Board and Director, Division of International Finance, then joined the meeting, and Messrs. Solomon, Leavitt, and Egertson withdrew. Frequency of Federal Open Market Committee meetings. At the meeting on October 7, 1964, on the basis of a distributed memorandum dated July 24, 1964, from Mr. Brill, the Board discussed the possible desirability of a change in the pattern of dates of meetings of the Federal Open Market Committee, which in recent years had normally been held on Tuesdays at three-week intervals. At the conclusion of the discussion the staff was asked to prepare a schedule of dates for meetings during 1965, based on views that had been expressed. Alternate schedules were attached to a memorandum of October 13, 1964, from Mr. 8roida, which had been distributed, with explanations as to why each had been suggested for consideration. During discussion of the merits of the various plans, a consensus developed. in favor of a schedule that would continue Tuesday as the date for meetings of the Committee at approximately three-week intervals, but 'which would adjust the intervals between certain meetings to two or four 14-eek6 so as (1) to provide for holding the March organization meeting, /41en newly-elected members assume their duties, as early in the month as is practicable--in this case, on March 2; (2) to avoid conflicts with the r°Ur scheduled meetings of the Federal Advisory Council with the Board; (3) to avoid meetings in weeks in which Monday or the preceding Friday 18 a national holiday; and (4) to provide for a meeting on September 28 t j, A...Y _5... lo/14/64 during the week in which the meetings of the International Monetary Fund and the International Bank for Reconstruction and Development will be held in Washington in 1965. Mr. Hackley noted that the Federal Reserve Act provides that meetings of the Federal Open Market Committee shall be held in Washington at least four times each year upon the call of the Chairman of the Board of Governors or at the request of any three members of the Committee. At the conclusion of the discussion it was understood that a tentative schedule of meeting dates for 1965 in accordance with the consensus as indicated would be submitted to the Federal Open Market Committee. The meeting then adjourned. Secretary's Note: Governor Shepardson today approved on behalf of the Board the following items: Letter to the Federal Reserve Bank of Cleveland (attached Item No. 2) aPProving the designation of Mrs. E. Y. Roberts as special assistant examiner. Memorandum from the Legal Division and the Division of Administrative Services dated October 12, 1964, requesting (1) approval of the printing 2f 300 copies of a loose-leaf compilation of "r3xtual Changes in the rederal Reserve Act and Related Laws" at a cost of approximately $7,850 (this being $3,250 above the original estimated cost of $4,600 that was 4Pproved on November 5, 1963); and (2) approval of any resultant overexpenditure in the printing and binding account of the budget of the riivision of Administrative Services. Memorandum from Donald R. Poole, Operator (Offset Press), Division of Administrative Services, requesting permission to teach (two evenings 4 month, without compensation) advanced photo mechanics to high school members of the U. S. Naval Reserve. „...... pOi co'• 1, • 4s/e. BOARD OF GOVERNORS Item No. 1 10/14/64 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD October 14, 1964 Board of Directors, The Connecticut Bank and Trust Company, Hartford, Connecticut. Gentlemen: The Board of Governors of the Federal Reserve System approves the establishment by The Connecticut Bank and Trust Company, Hartford, Connecticut, of a branch at the corner of Ellington Road and School Street, East Hartford, Connecticut, provided the branch is established within one year from the date of this letter. Very truly yours, (Signed) Karl E. Bakke Karl E. Bakke, Assistant Secretary. (The letter to the Reserve Bank stated that the Board also had approved a six-month extension of the period allowed to establish the branch; and that if an extension should be requested, the procedure prescribed in the Board's letter of November 9, 1962 (S-1846), Should be followed.) BOARD OF GOVERNORS Item No. 2 10/14/64 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS orriciAL CORRESPONDENCE TO THE BOARD October 14, 1964. Mr. Harry W. Huning, Vice President, Federal Reserve Bank of Cleveland, Cleveland, Ohio. 44101 Dear Mr. Huning: In accordance with the request contained in your letter of October 7, 1964, the Board approves the designation of Mrs. E. Y. Roberts as a special assistant examiner for the Federal Reserve Bank of Cleveland for the purpose of participating in examinations of State member banks except The Cleveland Trust Company, Cleveland, Ohio. The authorization heretofore given your bank to designate Mrs. Roberts as a special assistant examiner is hereby canceled. Appropriate notations have been made on our records of the names to be deleted from the list of special assistant examiners. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary.
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