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Minutes for To: Members of the Board From: Office of the Secretary October 22, 1962 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 1.3,elow. If you were present at the meeting, your allitials will indicate approval of the minutes. If You were not present, your initials will indicate °41Y 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 Monday, October 22, 1962. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Martin, Chairman Balderston, Vice Chairman Mills Shepardson Mr. Sherman, Secretary Mr. Kenyon, Assistant Secretary Mr. Young, Adviser to the Board and Director, Division of International Finance Mr. Molony, Assistant to the Board Mr. Cardon, Legislative Counsel Mr. Fauver, Assistant to the Board Messrs. Noyes, Koch, Brill, Holland, Williams, Dembitz, Altmann, Eckert, Freedman, Manookian, Partee, Peret, Wernick, and Yager, and Miss Dingle of the Division of Research and Statistics Messrs. Furth, Hersey, Sammons, Katz, Wood, Emery, Feiser) Maroni, Reynolds, and Swerling of the Division of International Finance Governor Coombs and Mr. McSharry of the Reserve Bank of Australia also were present. Economic review. The Divisions of Research and Statistics and 14ternational Finance presented a review of domestic and international economic and financial developments. the meeting Governor Coombs and Mr. McSharry then withdrew from ELl°4'with all of the members of the Board's staff except Messrs. Sherman, ce 4un, Young, Fauver, and Sammons, and the following entered the room: Mr. Hackley, General Counsel Mr. Farrell, Director, Division of Bank Operations !?. 10/22/62 -2- Circulated or distributed items. The following items, copies of /41ich are attached to these minutes under the respective item numbers indicated, were approved unanimously: Item No. Letter to Bankers Trust Company, New York, ilev York, approving the establishment of branch at 605 Third Avenue, Borough of Manhattan. 1 !otice for publication in the Federal egister relating to a proposed amendment I.! Regulation GI Collection of Noncash t,erns 2 letter to the Presidents of all Federal aerve Banks expressing concurrence in ,!Ie recommendations of the Conference of rresidents with respect to the handling of envelope drafts, 3 Z j tett n er to Dr. Javier Marquez with respect to Cooperating membership" for the Federal .e System in the Center for Latin American " 14(1 kh-tietarY Studies. (With the understanding that R'ProPriate advice would be sent to the Federal Serve Banks.) 4 All members of the staff except Messrs. Sherman, Kenyon, and nver then withdrew from the meeting. Director appointments. With reference to action taken by the on October 19, 1962, Chairman Martin reported that Mr. Nils Y. " 4 essell, Chairman of the Federal Reserve Bank of Boston, would not be 4 Position to accept reappointment as a Class C director upon the e)cPiration of his term on December 31, 1962. 10/22/62 -3Following a brief discussion of the information reported by Chairman Martin, it was agreed unanimously to designate Mr. Erwin D. C/Inh4m, presently Deputy Chairman of the Boston Reserve Bank, as Chairman and Federal Reserve Agent for the calendar year 1963, with e°MPensation fixed at an amount equal to the fees that would be payable to an other director of the Bank for equivalent time and attendance t° official business. It was also agreed unanimously to appoint Mr. William Webster, c4rrent1y a Class C director of the Boston Reserve Bank, as Deputy Chairof the Bank for the year 1963. It was understood that telegrams advising of the foregoing designation and appointment would not be sent to the parties concerned 114til about the time of the forthcoming meeting of the Conference of Chairmen of the Federal Reserve Banks. In further discussion, Mr. Fauver recited the names of those Class C directors and branch directors at several Federal Reserve Banks Ilho l'Iould not be eligible for reappointment upon expiration of their Ill'esent terms at the end of the year 1962, and Chairman Martin suggested Procedure for obtaining information, through the respective members of the Board, on persons who might be considered for appointment as replaceIt was understood that biographical data on such persons, as htained, would be distributed to the members of the Board for consideration. Directors' day. It was agreed to fix Thursday, March 14, 1963, 843 the tentative date for the annual program for newly-appointed Reserve I03. 10/22/62 -4- Ilank and branch directors. This meant that if the usual schedule were talc/bred, a dinner would be tendered on Wednesday, March 13. The meeting then adjourned. Sec Item No. 1 10/22/62 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD October 22, 1962 Board of Directors, Bankers Trust Company, New York, New York. Gentlemen: The Board of Governors of the Federal Reserve stem approves the estdblishment of a branch at 605 Third Avenue, Borough of Manhattan, New York, New York, by BaxIkers Trust Company, New York, New York, 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. NOTICE FEDERAL RESERVE SYSTEM Item No. 2 10/22/62 [12 CFR Part 207] (Reg. G] COLLECTION OF NONCASH ITEMS Definition of Noncash Items g a new paragraph (d) The Board of Governors is considering addin to § 207.1, which contains the definition of noncash items under Part 207, relating to the collection of noncash items. This amendment will necessitate the redesignation of the present paragraphs (d) tive through (f) as paragraphs (e) through (g). The proposed effec data for this amendment would be June 1, 1963. e the volume of items The purpose of this amendment is to reduc , which, because ,cash items' Presented to the Federal Reserve Banks as ' of their nature, require special handling. ws: The proposed amendment to § 207.1 is as follo § 207.1 - Definition of noncash items. ** ** special instructions (d) Checks, drafts, and other items with or requiring special handling; on it of the This notice is published pursuant to secti rules of procedure Administrative Procedure Act and section 2 of the ). of the Board of Governors of the Federal Reserve System (12 CFR 262.1 The proposed change is authorized under the authority cited at 12 CFR Part 2070 -2To aid in the consideration of the foregoing matter the Bcardwill be glad to receive from interested persons any relevant data, views, or arguments. Although such material may be sent directly to the Board, it is preferable that it be sent to the Federal Reserve Bank of the district, which will forward it to the Board for consideration. All such material should be submitted in writing to 4e received not later than November 19, 1962. Dated at Washington, D. C., this 22nd day of October, 1962. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM (Signed) Merritt Sherman Merritt Sherman, Secretary. Item No. 10/22/62 3 (1 S-1843 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD October 22, 1962, 'ear Sir: The Board of Governors concurs in the action taker_ by the Conference of Presidents at its meeting on September 10, 1962, adopting the recommendations contained in the Joint Report of the S ubcommittee on Collections and the Subcommittee of Counsel on Collections, dated August 29, 1962, with respect to the collection of envelope drafts. In implementation of this action, the Board is publishing in the Federal Register notice of a proposed amendment to Regulation G, Collection of Noncash Items, which, with conforming chaLgeF in the lettering of succeeding paragraphs of the section, would ad to 8ectio:1 207.1 of the Regulation a new paragraph as follows: "(d) Checks, drafts, and other items with special instructions or requiring special handling;" It will be noted that any comments must be submitted to the Federal Reserve Barks in time to be received not later than November 19, 1962. A coPy of the notice of the proposed amendment as prepared for publication in the Federal Register is enclosed. The notice of the proposed amendment indicates that, if arhpted, the amendment would become effective June 1, 1963. It is uNierstood that, as of the same date, conforming changes would be made by the Federal Reserve Banks in their operating letters or circulars relating to the collection of noncasl- items. The Board has also approved the proposed change of the word "sh°uld" to "must" in the uniform paragraph of the cash collection elteulars of the Reserve Banks that now provides that items with Passbook, certificate or any other document attached, and items with !Peclal instructions or requiring special handling "should" be sent the Reserve Bank as noncash items, such change to take effect as °t the effective date of the amendment to Regulation G. S-1843 -2- It is understood that, promptly following final adoption Of the amendment to Regulation G, and at least six months prior to the effective date of the amendment, a circular letter regarding this matter will be sent by the Federal Reserve Banks to banks in . their districts. Very truly yours, „. , Merritt Sherman, Secretary. E nclosure T° TH!E PRESIDENTS OF ALL FEDERAL RESERVE BANKS BOARD OF GOVERNORS Item No. OF THE 10/22/62 FEDERAL RESERVE SYSTEM WASHINGTON OFFICE OF THE CHAIRMAN October 22, 1962. Nr. Javier Marquez, Director, Center for Latin American Monetary Studies, San Juan de Letran No. 2, Piso 32, Mexico 1, D. F. peat Mr. Marquez: 1962, This is in reply to your letter of October 11, member" ating "cooper 'a Reserve System to become Of ting the Federal the Center for Latin American Monetary Studies. invitation The Board has authorized acceptance of the with the tend e ) effectiv , ea by you on behalf of your Assembly ca, od that an understo is It anLendar year beginning January 1, 1963. for the ate appropri be would s nual membership payment of $18,000 Yetem. System and Past cooperation between the Federal Reserve CEMLA1 has been mutually profitable, and we look forward to increasing be ' uefits from this closer relationship. Sincerely yours, (Signed) Wm. McC. Martin, Jr. Wm. McC. Martin, Jr. 4
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