Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, October 6, 1965, Volume 52, Part 10

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R 609

Minutes for

To:

Members of the Board

From:

Office of the Secretary

October 6, 1965

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. Robertson
Gov. Balderston
Gov. Shepardson
Gov. Mitchell
Gov. Daane
Gov. Maisel

Minutes of the Board of Governors of the Federal Reserve
System on Wednesday, October 6, 1965.

The Board met in the Board

Room at 10:00 a.m.
PRESENT:

Mr.
Mr.
Mr.
Mr.
Mr.

Martin, Chairman
Shepardson
Mitchell
Daane
Maisel
Sherman, Secretary
Kenyon, Assistant Secretary
Molony, Assistant to the Board
Hackley, General Counsel
Sammons, Adviser, Division of
International Finance
Mr. 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.
Mr.
Mr.

Circulated items.

The following items, copies of which are

attached to these minutes under the respective item numbers indicated,
were approved unanimously:
Item No.
Letter to Security Trust Company, Rochester, New
York, approving the establishment of a branch in
the Town of Penfield.

1

Letter to The Marine Trust Company of Western New
York, Buffalo, New York, approving the establishment
of a branch in the Village of Depew, Town of Cheektowaga.

2

Letter to Bankers Trust Company, Des Moines, Iowa,
approving the establishment of a branch at 3907-23
Merle Hay Road.

3

Letter to Manufacturers Hanover Trust Company, New
York, New York, approving an extension of time to
establish a branch at 290 Broadway, Borough of
Manhattan.

4

-2-

10/6/65

Gold loan arrangement with Bank for International Settlements
(Item No. 5).

There had been distributed a memorandum dated October 5,

1965, from Mr. Young, Adviser to the Board and Director, Division of
International Finance, regarding a request by the Bank for International
Settlements, Basle, Switzerland, for a further one-year extension of the
$25 million standby gold loan arrangement, renewal of which was most
recently approved by the Board on October 12, 1964.

In a telegram of

September 30, 1965, the Federal Reserve Bank of New York stated that
its Board of Directors had authorized, subject to approval by the Board
of Governors, an agreement to make loans to the Bank for International
Settlements during a period of one year beginning November 1, 1965, up
to a total amount outstanding at any one time of $25 million, each
borrowing to mature in not more than seven days and total borrowings
(the maximum loan facility) during any calendar month not to exceed the
equivalent of $25 million for a total of seven days.

The Reserve Bank

proposed to continue to make a commitment charge at the rate of 1/4 of
one per cent per annum on that part of the maximum loan facility not
used in any calendar month.

The arrangement would otherwise conform

to the Reserve Bank's usual terms and conditions, namely, each such
loan or loans would be made up to 98 per cent of the value of gold bars
to be set aside at the time of each drawing under pledge to the Reserve
Bank, and each such loan would bear interest, from the date it was made
until paid, at the discount rate of the New York Reserve Bank in effect

10/6/65

-3-

on the date such loan was made.

The usual participation in any such

loan or loans would be offered to the other Reserve Banks.

Attached

to the memorandum was a draft of telegram that would grant the approval
requested by the New York Reserve Bank.
After discussion, the telegram was approved unanimously.

A

copy is attached as Item No. 5.
The meeting then adjourned.
Secretary's Notes: On October 5, 1965,
Governor Shepardson approved on behalf
of the Board memoranda reconunending the
following actions relating to the Board's
staff:
Salary increase
Davita C. Hays, Secretary, Division of International Finance, from
$6,245 to $6,650 per annum, effective October 10, 1965.
Acceptance of resignation
Karen Damon, Cafeteria Helper (part-time), Division of Administrative
Services, effective at the close of business September 28, 1965.
Governor Shepardson today approved on
behalf of the Board memoranda recommending the following actions relating
to the Board's staff:
6..ppointments
Barbara Jane Greenspan as Clerk, Division of Administrative Services,
With basic annual salary at the rate of $4,005, effective the date of
entrance upon duty.
Rosalie Ruegg as Economist, Division of Research and Statistics,
With basic annual salary at the rate of $7,220, effective the date of
entrance upon duty.

-4-

10/6/65

Reinstatement following military service
Charles E. Evans as Operator, Duplicating Devices (Trainee), Division
of Administrative Services, with basic annual salary at the rate of $4,764,
effective the date of entrance upon duty.
Salary increases
James E. Miller, Operator, Tabulating Equipment, Division of Data
Processing, from $4,630 to $5,000 per annum, with a change in title to
Digital Computer Prograwmer (Trainee), effective October 10, 1965.
Lee R. Thompson, Operator, Tabulating Equipment (Trainee), Division
of Data Processing, from $4,005 to $4,480 per annum, with a change in
title to Operator, Tabulating Equipment, effective October 10, 1965.
Transfer
Barbara Anne Wilson, from the position of Stenographer in the
Division of Personnel Administration to the position of Stenographer
in the Division of Bank Operations, with no change in basic annual
salary at the rate of $4,630, effective October 10, 1965.
Acceptance of resignations
Marguerite T. Hudgins, Research Assistant, Division of Research
and Statistics, effective at the close of business October 8, 1965.
Jewell I. Seay, Indexing and Reference Assistant, Office of the
Secretary, effective at the close of business October 8, 1965.
Governor Shepardson today noted on
behalf of the Board a memorandum from
the Division of Administrative Services
advising of the death of Harry F. Allen,
Telegraph Operator in that Division, on
October 1, 1965.

Secretary

IrT

Item No. 1
10/6/65

BOARD OF GOVERNORS
OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADORCIII• orrictm. CORRICIMPONOCNCIC
TO THE •OARO

October 6, 1965

Board of Directors,
Security Trust Company,
Rochester, New York.
Gentlemen:
The Board of Governors of the Federal Reserve
System approves the establishment by Security Trust Company, Rochester, New York, of a branch on the south side of
Browncroft Boulevard, east of the intersection of Browncroft
Boulevard, Blossom Road and Creek Street, Town of Penfield
(unincorporated area), Monrope County, 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.

(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
10/6/65

OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
POORIMS OFFICIAL CORRESPONDENCE
TO THE !BOARD

October 6, 1965

Board of Directors,
The Marine Trust Company,
of Western New York,
Buffalo, New York.
Gentlemen:
The Board of Governors of the Federal Reserve
System approves the establishment by The Marine Trust
Company of Western New York, of a branch approximately
425 feet southeast of the southeast corner of Walden
Avenue and Dick Road, Village of Depew, Town of Cheektowaga, Erie County, 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.

(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.)

324k
BOARD OF GOVERNORS

Item No. 3
10/6/65

OF THE

FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
AODRtS

orractm. OOPHICIIPONOICHCC
OAND
TO THr

October 6, 1965

Board of Directors,
Bankers Trust Company,
Des Moines, Iowa.
Gentlemen:
The Board of Governors of the Federal Reserve
System approves the establishment of a branch by Bankers
Trust Company, Des Moines, Iowa, at 3907-23 Merle Hay
Road, Des Moines, Iowa, 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.

(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.)

'1'94

BOARD OF GOVERNORS

Item No. 4

OF THE

FEDERAL RESERVE SYSTEM

10/6/65

WASHINGTON, D. C. 20551
ADDRESS OrrICIAL CORRESPONDENCE
TO THE BOARD

.4011.REO.
•.....•

October 6, 1965

Board of Directors,
Manufacturers Hanover Trust Company,
New York, New York.
Gentlemen:
The Board of Governors of the Federal Reserve
System extends to April 15, 1966, the time within which
Manufacturers Hanover Trust Company may establish a
branch at 290 Broadway, Borough of Manhattan, New York,
New York.
Very truly yours,
(Signed) Karl E. Bakke

Karl E. Bakke,
Assistant Secretary.

321LTELEGRAM
LEASED WIRE
SERVICE

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON

Item No. 5
10/6/65

October 6. 1965

SANFORD - NEW YORK

BOARD APPROVES GRANTING LOAN OR LOANS ON GOLD UP TO
A TOTAL OF $25 MILLION BY THE FEDERAL RESERVE BANK OF NEW
YORK TO THE BANK FOR INTERNATIONAL SETTLEMENTS ON THE TERMS
DESCRIBED IN YOUR WIRE OF SEPTEMBER'30.

(Signed) Merritt Sherman
SHERMAN