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Minutes for October 21, 1957 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, if you were present at the meeting, please initial in column A below to indicate that you approve the minutes. If you were not present, please initial in column B below to indicate that you have seen the minutes. A Chm. Martin Gov. Szymczak Gov. Vardaman 1/ Gov. Mills Gov. Robertson Gov. Balderston ci,e7/3 Gov. Shepardson 1/ In accordance with Governor Shepardson's memorandum of March 8, 1957, these minutes are not being sent to Governor Vardaman for initial. 0 9 4I , 1K the Minutes of actions taken by the Board of Governors of Federal Reserve System on Monday, October 211 1957. The Board met in the Board Room at 10:00 aim PRESENT: Mr. Mr. Mr. Mr. Mr. Balderston, Vice Chairman Szymczak Mills Robertson Shepardson Mr. Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Kenyon, Assistant Secretary Thomas, Economic Adviser to the Board Solomon, Assistant General Counsel Messrs. Hersey, Bangs, Furth, Reynolds, Sammons, and Wood of the Division of International Finance ntaReview of international financial developments. The represe tives of the Division of International Finance summarized the current status of United States foreign trade and, in reviewing developments in selected foreign areas, drew attention particularly to factors which Might be expected to affect this country's export-import relationships with various parts of the world. in Following the review and a discussion of questions raised connection therewith, the representatives of the Division of International Finance withdrew from the meeting, as did Mr. Sherman, and Messrs. Hostrup, Division of Examinations, Nelson, Prul Benner, Assistant Directors of the entered the room. New York Application of Marine Midland Trust Company of Central had been circulated to 1:21:establishment of branch (Item No. 1). There 10/21/57 -2- the members of the Board a file on the application of Marine Midland Trust Company of Central New York, Syracuse, New York, to establish a branch at 125 West Broadway, Fulton, New York. Pursuant to the favorable recommendation of the Division of aminations, a letter to the applicant bank authorizing the establishment 4 of the branch was approved unanimously, for transmittal through the Federal Reserve Bank of New York. A copy of the letter is attached to these minutes as Item No. 1. Extension of gold loan arrangement for the Bank for International ZIIIlements (Item No. 2). In a telegram dated October 17, 1957, Vice President Exter of the Federal Reserve Bank of New York referred to the Board's approval on October 261 1955, of a standby credit arrangement Under which the Bank for International Settlements is entitled to borrow against gold up to $25 million in the aggregate at any one time outstanding, Provided each borrowing matures in not more than seven days and total borrowings during any calendar month do not exceed the equivalent of $25 adllion for a total of seven days. This arrangement, extended for one Year in 1956, was now due to expire October 31, 1957, and in a letter dated October 8, 1957, the Bank for International Settlements had requested renewal of the facility for another period of one year. Mr. Exter's t elegram advised that the Reserve Bank's Board of Directors had authorized the "tension of the arrangement through October 31, 1958, subject to aPProval of the Board of Governors. 9(11 -3- 10/21/57 In a memorandum dated October 180 19570 which had been distributed to the members of the Board, Mr. Marget, Director of the Division of International Finance, stated that the requested extension alVeared to raise no special questions of policy and would be entirely consistent with the principles covering loans on gold. Submitted with the memorandum was a draft of telegram to the Federal Reserve Bank of New York which would approve extension of the existing arrangement through October 31, 1958. Following a brief discussion of the matter, the telegram to the New York Reserve Bank was approved unanimously. A copy is attached hereto as Item No. 2. The meeting then adjourned. Secretary's Note: Pursuant to the recommendation contained in a memorandum dated October 21, 1957, from Mr. Johnson, Controller, Governor Shepardson today approved on behalf of the Board acceptance of the resignation of Ronald S. Goldberg, Accounting Clerk in the Office of the Controller, effective October 21, 1957. algrat../ Aliwd AL-Vi tary BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 1 10/21/57 WASHINGTON 25. D. C. NCE A0014ESS OFFICI4L C0'ESPONDE TO THE BOARD October 21, 1957 Board of Directors, Marine Midland Trust Company of Central New York, Syracuse 1, New York. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of New York, the Board of Governors of the Federal Reserve System approves the establishment of a branch by the Marine Midland Trust Company of Central New York, Syracuse, New York, at 125 West Broadway, Fulton, New York, provided the branch is established within six months from the date of this letter and approval of the State authorities is in effect as of the date the branch is established. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenters Secretary. TELEGRAM BOARD OF GOVERNORS OF THE Item No, 2 10/21/57 FEDERAL RESERVE SYSTEM LEASED WIRE SERVICE WASHINGTON October 21, 1957 EXTER - NEW YORK MENT YOUR WIRE OCTOBER 17. BOARD APPROVES EXTENSION OF THE ARRANGE TO HAKE LOAN OR LOAM BY YOUR BALK TO THE BANK FOR INTERNATIONAL SETTLEMENTS DURING A PERIOD OF ONE YEAR, FROM NOVEMBER 1, 1957 THROUGH OCTOBFR 31, 190, UP TO A TOTAL AMOUNT OUTSTANDING AT ANY ONE TIME OF TWENTY-FIVE MILLION DOLLARS, EACH BORROWING TO MATURE IN NOT MGRE THAN SEVEN DAYS AND TOTAL BORROWINGS DURING ANY CALENDAR MONTH NOT TO EXCEED TH2 EQUIVALENT OF TWENTY-FIVE MILLION DOLLARS FOR THE TOTAL OF SEVEN . DAys FOR THIS FACILITY, IT IS UNDERSTOOD THAT YOU WILL MAKE A COMMITMENT CHARGE AT THE RATE OF ONE-FOURTH OF ONE PER CENT PER ANNUM ON THAT PART OF THE MAXIMUM LOAN FACILITY NOT USED IN ANY CALENDAR MONTH. THE LOAN ARRANGE,IENT WOULD CONFORM TO YOUR USUAL TERMS AND CONDITIONS: (A) EACH SUCH LOAN OR LOANS TO HE MADE UP TO NINETY-EIGHT PER CENT QP THE VALUE OF GOLD BARS TO BE SET ASIDE AT THE TIME OF EACH DRAWING UNDER PLEDGE TO YOU; AND UNTIL (B) EACH SUCH LOAN TO BEAR INTEREST FROM THE DATE IT IS MADE PAID AT THE DISCOUNT RATE OF YOUR BANK IN EFFECT UPON THE DATE SUCH LOAN IS MADE. IT IS UNDERSTOOD THAT THE USUAL PARTICIPATION WILL BE OFFERED TO THE OTHER FEDERAL RESERVE BANKS. (Signed) S. R. Carpente: CARPENTER
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