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Minutes for September 11, 1963 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. Chin. Martin Gov. Mills Gov, Robertson Gov. Balderston Gov. Shepardson Gov. King Gov. Mitchell http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3091 Minutes of the Board of Governors of the Federal Reserve System on Wednesday, September 11, 1963. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Martin, Chairman Balderston, Vice Chairman Robertson Shepardson King Sherman, Secretary Kenyon, Assistant Secretary Fauver, Assistant to the Board Hackley, General Counsel Solomon, Director, Division of Examinations Harris, Coordinator of Defense Planning O'Connell, Assistant General Counsel Daniels, Assistant Director) Division of Bank Operations Mr. Leavitt, Assistant Director, Division of Examinations Mr. Thompson, Assistant Director, Division of Examinations Mr. Mattras, General Assistant, Office of the Secretary Mr. Bakke, Senior Attorney, Legal Division Miss Hart, Senior Attorney, Legal Division Mr. Lyon, Review Examiner, Division of Examinations Mr. Mr. Mr. Mr. Mt. Mr. Mr. Mr. Circulated or distributed items. The following items, copies Of which are attached to these minutes under the respective item numbers indicated, were approved unanimously: Item No. Letters to the Department of Justice, the Federal Reserve Bank of San Francisco, and The Valley National Bank of Arizona, Phoenix, Arizona, regarding a request from the Justice Department for access to certain unpublished information relative to United States v. The Valley National Bank of Arizona, et al. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1-3 3092 -2.- 9/11/63 Item No. tion Letter to the Joint Committee on Defense Produc zation mobili on report annual transmitting an activities. 14. tgate, Iowa). Report on competitive factors (Oelwein-Wes There Comptroller of the Currency had been distributed a draft of report to the se of assets on the competitive factors involved in the proposed purcha s Bank, Westgate, and assumption of deposit liabilities of State Saving n, Iowa. Iowa, by First National Bank of Oelwein, Oelwei ission to the The report was approved unanimously for transm Comptroller; the conclusion read as follows: of deposit The purchase of the assets and assumption by First Iowa, te, Westga liabilities of State Savings Bank, an have not would Iowa, National Bank of Oelwein, Oelwein, unfavorable effect on competition. Mr. Bakke then withdrew from the meeting. s Requests for oral arguments (Colorado cases) (Item 5 and 6). Division dated There had been distributed a memorandum from the Legal protesting banks Alzgust 30, 1963, recommending denial of a request by Denver for an oral argument before the Board regarding the application of of the formaU. S. Bancorporation, Inc., Denver, Colorado, for approval than 50 per tion of a bank holding company through acquisition of more cent of the shares of three Colorado banks. There had also been distrib- denial of a uted a memorandum dated September 10, 1963, recommending Colorado Bankshares, similar request regarding the application of First proposed new bank in Inc., Englewood, Colorado, to acquire shares of a Denver. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3093 9/11/63 -3At the meeting on September 4, 1963, the Board had considered the request for oral argument with regard to the Denver U. S. Bancorporation matter, and it had been decided that a decision on that request would be deferred pending consideration of the request in connection With the First Colorado Bankshares application. In the Denver case, the protestants consisted of ten Colorado banks, admitted as parties in the public hearing held pursuant to Board order in Denver, Colorado, on April 23-26, 1963. Six of the ten banks were also the protesting banks In the First Colorado Bankshares case, on which a public hearing also had been held, and the same Counsel represented the protesting banks in both cases. In the case of Denver U. S. Bancorporation, the protesting banks requested an oral argument on the ground that the record in that proceeding presented highly important questions concerning banking competition and community needs in the State of Colorado and that oral presentation would assist the Board in developing administrative standards necessary to guide the future conduct and planning of Colorado banking. Denver U. S. Bancorporation replied that oral argument was unnecessary, would not contribute materially to the Board's consideration of the application, and would simply repeat arguments that the protesting banks had already advanced in detail. In the case of First Colorado Bankshares, the only reason given by the protesting banks as grounds for an oral presentation was a belief http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3094 9/11/63 that oral argument would assist the Board in further developing standards for the formation and expansion of bank holding companies in Colorado. First Colorado stated in opposition that all parties had been given a full and adequate opportunity to present their positions; that adequate standards for the Board's decision-making function had been developed In the more than 60 cases decided by the Board under the Bank Holding Company Act; and that the primary purpose in requesting oral argument was to maximize delay and expense in this proceeding. Mr. O'Connell commented on the memoranda from the Legal Division and amplified the reasons why it was felt that both requests for oral argument should be denied. In summary, the Legal Division believed that all parties in both cases had had ample opportunity to summarize the by hearing record in a light favorable to their respective positions briefs filing proposed findings of fact, conclusions of law, and other and replies. It was the Division's view that the oral arguments would afford no substantial assistance to the Board in respect to its decisionmaking function, and they would delay the Board's final actions. at the Mr. O'Connell also commented on two questions discussed meeting on September 4. One point related to the applicability to the UM instant Colorado cases of the recent Court of Appeals decision in Trust the matter of Whitney National Bank v. The Bank of New Orleans and Co., et al. It was the opinion of the Legal Division that this issue could be resolved by the Board without benefit of oral argument by the Parties involved. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Legal Division felt that the circumstances in the Ink Ill tfito:31L3 -5- 9/11/63 two instant cases could be distinguished satisfactorily from the Whitney National Bank case. The other point raised at the September 4 meeting related to the question whether prior action by the Board in granting requests for oral argument in holding company cases would constitute a precedent compelling the granting of oral argument in the present cases. A review of the Board's records reflected the fact that the Board had customarily granted case requests for oral argument in previous cases, but also that in each the Board's final decision was adverse to the party that had requested oral argument. The Legal Division observed that despite the consistency with Which the Board had acted in granting oral argument to parties potentially remained adversely affected by Board action, the granting of such argument a discretionary act of the Board. It was submitted that while consistent desirable, administrative action under like circumstances was generally an agency's position could be susceptible to criticism if it failed to d in a exercise its discretion on the basis of the circumstances presente involved. given situation, even though some inconsistency might appear to be requests Accordingly, the Legal Division recommended denial of the for oral argument in each of the current cases. However, if the Board be granted granted an oral argument in either case, it should presumably in both cases. It was also recommended that if the requests for oral argument were granted, separate orders be issued and a single date set for both arguments. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3096 -6- 9/11/63 Boara Governor Robertson agreed that it was unlikely that the instant cases. would be aided substantially by oral argument in the two arily granting However, he felt it would be unfortunate if, after custom ations, the requests by applicants for oral argument in previous applic Board were to deny an oral argument to the protesting banks. Notwith- he thought there standing the additional delay that would be involved, was merit in granting oral argument to those who opposed approval of an application as well as to proponents. the Board Governor Shepardson noted the consistency with which had granted requests for oral argument in the past, but said he did not ts. feel it should be an inviolable rule always to grant such reques He adverse to parties brought out that past decisions had been consistently inclined to follow requesting oral argument and indicated that he was the recommendation of the Legal Division. with the view of Governor King stated that he agreed generally Governor Robertson. nts, While little might be gained from the oral argume been the they probably should be granted on the ground that this had general practice in the past. Legal Division Governor Balderston expressed the view that the Presented a good case, but said that the public relations aspect, particbanks involved, would 41ar1Y in view of the number of the protesting for oral argument lead him to feel that the granting of the requests might be warranted. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 309 e -7- 9/11/63 Governor Shepardson then said that he had no objection to the but additional time involved in an oral hearing if it could be helpful, he called attention to the feeling of First Colorado that it was being subjected to undue harassment by the protesting banks. Chairman Martin stated that he was rather persuaded by the position of the Legal Division. However, if there was any feeling in the Board that an oral hearing would be desirable, he felt it should be held. He added that the question of granting requests for oral argument must also be considered from the standpoint of the Board's public posture. After further discussion, the Board authorized the issuance of orders granting the requests for oral argument regarding the application Of Denver U. S. Bancorporation, Inc., and the application of First Colorado Bankshares, Inc. It was understood that both hearings would be held on the same day, on a mutually convenient date to be worked out with the parties concerned. Secretary's Note: Arrangements were made subsequently for the oral arguments to be held on Friday, September 20, 1963, one in the morning and the other in the afternoon. Copies of the orders in these matters, as issued, are attached to these minutes as Items 5 and 6. Messrs. Thompson and Lyon then withdrew from the meeting. Application of Otto Bremer Company (Item No. 7). There had been September 9, 1963, distributed a memorandum from the Legal Division dated regarding the application of Otto Bremer Company, St. Paul, Minnesota, http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -8- 9/11/63 for a determination by the Board under section 4(c)(6) of the Bank Holding Company Act with respect to the proposed acquisition of Shares in six corporations to be formed to carry on an insurance agency business in connection with six of the applicant's subsidiary banks. There had aalso been distributed a draft of order reflecting a favorable determin tion. At its meeting on April 29, 1963, the Board had ordered a Schneider hearing on this matter, as required by law, and Mr. Charles W. was designated as Hearing Examiner. The hearing was conducted on June 13, Mr. 1963, and a Report and Recommended Decision had been filed, wherein Schneider recommended approval of the application. The Legal Division adopting concurred in this conclusion and recommended issuance of an order the Hearing Examiner's Report and Recommended Decision. order, After discussion, the Board authorized the issuance of the a copy of which is attached to these minutes as Item No. 7. The meeting then adjourned. Secretary's Notes: Pursuant to recommendations contained in memoranda from appropriate individuals concerned, Governor Shepardson approved on behaJf of the Board on September 10, 1963, the following actions relating to the Board's staff: Extension of consultant appointment Contract for the services of Professor Dan M. McGill of the Wharton School of Finance and Commerce, University of Pennsylvania, extended ly through December 31, 1963, under the same arrangements as were original . Provided when appointed on June 11, 1962, as subsequently extended http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3099 -9- 9/11/63 Salary increase Mary C. Wing, Technical Editor (Economics), Division of Research and Statistics, from $9,105 to $9,790 per annum, effective September 15, 1963. Acceptance of resignations Starr Preston Morris, Clerk-Typist, Division of Research and Statistics, effective at the close of business September 27, 1963. Richard J. Niebuhr, Research Assistant (Summer), Division of Research and Statistics, effective at the close of business September 6, 1963. Robert B. Thornton, Assistant Federal Reserve Examiner, Division of Examinations, effective at the close of business September 13, 1963. Pursuant to recommendations contained in memoranda from appropriate individuals concerned, Governor Shepardson today approved on behaJf of the Board acceptance of the resignations of the following persons on the Board's staff, effective the dates indicated: Richard S. Landry, Assistant to the Secretary, Office of the Secretary, effective at the close of business September 13, 1963. Jeanne A. Chambers, Secretary, Division of Research and Statistics, effective at the close of business September 13, 1963. Marjorie J. Hollingshead, Secretary, Division of Research and Statistics, effective at the close of business September 27, 1963. David R. Hull, Economist, Division of Research and Statistics, effective at the close of business September 14, 1963. Judy Ann Marconi, Secretary, Division of Bank Operations, effective at the close of business September 27, 1963. Acting in the absence of Governor Shepardson, Governor Robertson today approved on behalf of the Board the following items: Memorandum from the Division of International Finance recommending acceptance of the resignation of Rosemary A. Darlington, Research Assistant in that Division, effective September 16, 1963. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3100 9/11/63 -10- No. 8) Letter to the Federal Reserve Bank of Richmond (attached Item Herbert , Coffman E. Robert Melton, G. Everett approving the designation of rs. examine nt assista special as T. Gordon, and Russell H. Sherry No. 9) Letter to the Federal Reserve Bank of Richmond (attached Item r. examine nt assista special as Cain Y. approving the designation of Woody http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3101 BOARD OF GOVERNORS Item No. 1 9/11/63 OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD September 11, 1963. Honorable William H. Orrick, Jr., Assistant Attorney General, Antitrust Division, Department of Justice, Washington 25, D. C. Re: U. S. v.The Valley National Bank, et al. Civil - 4550 Phx. Dear Mr. Orrick: On April 23, 1963, your predecessor in office directed a letter to the Board of Governors requesting access to certain materials, specified in subpoenae duces tacum directed to the defendants in the above-captioned proceeding, which might be in the possession Of either the Board or any Federal Reserve Bank. Under date of May 14, 1963, the Board responded that a search of its files had failed to turn up any of the specified materials, attributable to the fact that: (a) Arizona Bancorporation is not and has not been (except for a brief period because of inadvertence on Bancorporation's part) a bank holding company subject to the Board's jurisdiction, nor has it sought or held a voting permit as a holding company affiliate; (b) Primary jurisdiction over The Valley National Bank of Arizona rests with the Comptroller of the Currency; (c) The Arizona Bank (formerly Bank of Douglas) is a State nonmember insured bank (as were the Bank of Flagstaff, the First State Bank of Arizona, the Buckeye Valley Bank, and the Farmers and Stockmen's Bank of Phoenix prior to their acquisition by or merger into The Valley National Bank of Arizona or the Bank of Douglas) subject to the Federal jurisdiction of the Federal Deposit Insurance Corporation. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3102 Mr. William H. Orrick, Jr. -2- However, it was further stated that the request had been forwarded to the Federal Reserve Bank of San Francisco, in whose District the defendants are situated, and that ,7.dvice would be Liven of the results of a search of that Bank's files. By letter of August 19, 1963, you inquired regarding the stadated tus of this matter, and were advised, in a letter from the Board would you and August 21, 1963, that a wire was being sent to the Bank be promptly advised of the response. the The Board is now in receipt of information concerning ng followi The files. its results of the Reserve Bank's search of ed have documents conforming to the description of materials request been found: 1. Letter dated August 12, 1953 from W. B. Bimson, Chairman of the Board, The Valley National Bank, to C. E. Earhart, President, Federal Reserve Bank of San Francisco, enclosing (a) letter to stockholders (dated January 2, 1953) and (b) SEC prospectus (dated August 6, 1953), relative to formation of Arizona Bancorporation, /Patrick subpoena, item 10a(3).1 2. Reporting forms submitted by Valley National Bank in connection with the Federal Reserve System's 1955 Survey of Commercial and Industrial Loans and 1957 Survey of Business Loans, and related correspondence (letter dated October 31, 1955, from O. P. Wheeler, Vice President, Federal Reserve Bank of San Francisco, to The Valley National Bank; letter dated November 2, 1955, from D. D. Healey, Assistant Comptroller, The Valley National Bank, to O. P. Wheeler, Vice President, Federal Reserve Bank of San Francisco; letter dated October 12, 1955, from O. P. Wheeler, Vice President, Federal Reserve Bank of San Francisco, to Manager of Sunnyslope Branch of The Valley National Bank; letter dated October 14, 1955, from R. P. Kyle, Manager, Sunnyslope Branch of The Valley National Bank, Reto O. P. Wheeler, Vice President, Federal dated letter serve Bank of San Francisco; October 17, 1955, from O. P. Wheeler, Vice President, Federal Reserve Bank of San Francisco, to R. P. Kyle, Manager, Sunnyslope Branch, The Valley National Bank; letter dated October 20, 1955, from R. P. Kyle, l Manager, Sunnyslope Branch, The Valley Nationa l Federa ent, Presid Vice r, Wheele Bank, to O. P. Reserve Bank of San Francisco; letter dated http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3103 Mr. William H. Orrick, Jr. -3- November 11, 1957, from O. P. Wheeler, Vice President, Federal Reserve Bank of San Francisco, to James P. Wiley, Assistant Cashier, The Valley National Bank; letter dated Novem tant , ber 18, 1957, from James D. Wiley Assis Cashier, The Valley National Bank, to O. P. Wheeler, Vice President, Federal Reserve Bank of San Francisco; letter dated November 5, 1957, from O. P. Wheeler, Vice President, Federal Reserve Bank of San Francisco, to Jack Cochran, Assistant Manager, Buckeye dated Branch, The Valley National Bank; letter tant Assis an, Cochr November 8, 1957, from Jack nal Natio y Valle Manager, Buckeye Branch, The al ReBank, to O. P. Wheeler, Vice President, Feder item 14.7 ena, ick subpo serve Bank of San Francisco.-11/Pctr 3. R. Letter dated September 10, 1956, from W. y Valle The , Bimson, Chairman of the Board National Bank, to E. R. Millard, Vice Presi isco, Franc San dent, Federal Reserve Bank of Arizona enclosing (a) 1955 Annual Report of and 1956) 17, ry Bancorporation (dated Janua na Arizo of rs holde (b) interim report to stock which in , 1956) 31, Bancorporation (dated July ship of there is passing reference to the owner rpoBanco na Arizo by taff shares of Bank of Flags r merge the Plan, ng Shari ration and the Profit nal Natio y Valle The and taff Flags between Bank of tion rpora Banco na Arizo by ent lishm Bank, the estab and the of Exchange Finance Company offices, of tion rpora Banco na Arizo organization by subick jyatr ny. Compa ance Insur Guaranty Life f .: ) 19a(3 and ), 18a(3 , 4a(3) poena, items advised that no other documents Apart from the foregoing, the Board is description of materials called have been found comporting with the designated in your letter of for in the paragraphs of the subpoenae April 23, 1963. ents for the purpose of Regarding access to the above docum sted that representatives of your inspection and copying, it is sugge President of the Federal Reserve Division contact Mr. Eliot J. Swan, sary arrangements. Bank of San Francisco, to make the neces subpoena, the correspondence 1/ NOTE: While not called for in the of San Francisco listed above initiated by the Federal Reserve Bank replies of The Valley National has been included in order that the Bank will be meaningful. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3104 Mr. William H. Orrick, Jr. -4- A copy of this letter is being transmitted to The Valley Reserve National Bank, for their information, through the Federal Bank of San Francisco. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Item No. 2 9/11/63 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ONDENCE ADDRESS OFFICIAL CORRESP TO THE BOARD September 11, 1963. Mr. Eliot J. Swan, President, Federal Reserve Bank of San Francisco, San Francisco 20, California. Re: al. United States v. The Valley National Bank, et Dear Mr. Swan: 0f °f to in 1963, enclosing copies Thank you for your letter of August 23, the Board's request to nt pursua materials found in your Bank's files inquiry relative e Justic of ment May 14, 1963, concerning the Depart nts called for docume n certai the availability within the System of ding. procee oned -capti above subpoenae to the defendants in the a selection has Upon review of the materials in question, description of the to ically specif been made of those which conform ated by the design nae subpoe the of ,c 1°ouments listed in the paragraphs ce initiated ponden corres n certai with er bePartment in its inquiry, togeth ' ' and TY your Bank in connection with the 1955 Survey of Commercial ting reques Loans, ss Busine of Survey 'udustrial Loans and the 1957 The Valley by ted submit les schedu the in s entrie larification of several e the becaus ed includ "ational Bank. These latter documents have been pondence corres all for s ubpoena directed to The Valley National Bank calls some and s, Survey °riginated by that bank in connection with the above nce refere t withou gless ! the replies to your inquiries would be meanin supply to riate approp s tL0 the questions posed. Therefore, it appear ed that to dne Department with the letters in question. It is not believ ants. SO would in any way prejudice the defend construe the demands Since the defendants would be entitled to of the the extent of the Board's subpoenae strictly, it is believed that equally v°1untary compliance with the Department's request should be available made be should ed select so 1.1recise, and that only the materials , 0 the Department of Justice. ' Re 261.2(b) of its Rules The Board, acting pursuant to section authorized the has ts, Reques garding Information, Submittals, and http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3106 . Eliot J. Swan -2- on and copying, to the bepartment's access, for the purpose of inspecti Assistant Attorney General, the documents listed in a letter of this date to your information. for Antitrust Division, a copy of which is enclosed You will note the Board has suggested that a representative of the to implement this Antitrust Division contact you regarding arrangements authorization. to Also enclosed, for forwarding by your Bank, is a letter for ting transmit Bank, J. E. Patrick, President, The Valley National Assistant Attorney his information a copy of the Board's letter to the General. Thank you for your cooperation in this matter. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. Enclosures http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3107 Item NO. 3 BOARD OF GOVERNORS 9/11/63 OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD September 11, 1963. Mr. J. E. Patrick, President, The Valley National Bank of Arizona, 141 North Central Street, Phoenix, Arizona. Re: United States v. The Valley National Bank of Arizona, et al. Dear Mr. Patrick: Pursuant to a stipulation entered into between the Department of Justice and the defendants in the above-captioned case, the Department has requested the Board to make available, for inspection and copying, materials Pertaining to certain of the demands embodied in subpoenae directed to the said defendants. In this connection, the Board has addressed a letter of this date to the Assistant Attorney General in charge of the Antitrust Division designating which of the requested materials are available within the Federal Reserve System. A copy of this letter is enclosed for your information. You will note that, with one exception, the materials to which the bepartment is authorized to have access conform strictly with the terms of the demands in the appropriate paragraphs of the subpoenae. The one exception is certain correspondence initiated by the Federal Reserve Bank of San Francisco in connection with the System's 1955 Survey of Commercial and Industrial Loans and 1957 Survey of Business Loans, requesting clarification (If certain entries in the schedules submitted by your bank relative to these studies. These letters have been included in view of the fact that certain °I the responses thereto submitted by your bank would appear to be meaning(.11 only when related to the text of the inquiries involved. It is the Board's opinion, that these letters do not enlarge the substantive content of the materials requested by the Department of Justice d that furnishing them to the Department will in no way be prejudicial Lo your interests. n Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3108 :eto r. oivt'0"11^ , , 003 VP BOARD OF GOVERNORS OF' THE Item No. FEDERAL RESERVE SYSTEM 4 9/11/63 WAS OFFICE OF THE CHAIRMAN September 12, 1963 The Honorable Wright Patman, Chairman, Joint Committee on Defense Production, Congress of the United States, Washington 25, D. C. Dear Mr. Chairman: In response to your letter of July 13, 1963, attached is a summary of mobilization activities of the Board of Governors for the year ending June 30, 1963. The summary covers three major preparedness programs--the program for the continuity of the essential functions of the Federal Reserve System in the event of an attack on the United States, the program for bank preparedness, and the V-loan program. Sincerely yours, (Signed) Wm. McC. Martin, Jr. Wm. McC. Martin, Jr. Attachment http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 31,09 SUMMARY OF THE MOBILIZATION ACTIVITIES OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM FOR THE YEAR ENDING JUNE 30, 1963 Introduction This report summarizes the mobilization activities of the Board of Governors of the Federal Reserve System for the year ending June 30, 1963. It has been prepared at the request of the Joint Committee on Defense Production, Congress of the United States, and follows the outline suggested by the Committee. The report is divided into three Parts, each of which deals with a major preparedness program. Part I relates to the development of plans and preparedness measures for the continuity of the essential functions of the Board of Governors of the Federal Reserve System and the Federal Reserve Banks in a war emergency. Part II relates to the development of plans and preparedness measures for the continuity of essential operations of "banking institutions" in a war emergency. Part III describes Regulation V-loan activities and plans for the conduct of such activities in a war emergency. Part I Continuity of the Essential Functions of The Board of Governors of The Federal Reserve System, and The Federal Reserve Banks 1. Program. The Board of Governors is responsible for the development of plans to assure the continuity of the essential functions of the Federal Reserve System in the event of an attack on the United States, and for participating in the development of Government policies in the monetary and bank credit fields to deal with the potential economic consequences of an attack. 2. Authority. The authority to develop plans and preparedness measures for the continuity of the essential functions of the Federal Reserve System and to deal with the potential economic consequences of an attack derives from the National Security Act of 1947, as amended, the Defense Production Act of 1950, as amended, the Federal Civil Defense Act of 1950, as amended, Executive Order 10346, Executive Order Treas11094, The National Plan for Civil and Defense Mobilization, and the to Authority Emergency ury's Order, January 10, 1961, Delegating Board of Governors of the Federal Reserve System. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 31.10 -23. Activities. Activities during the past year were greatly , stimulated by the Cuban crisis. At the time of its announcement limited a in engaged were s agencie l on October 22, 1962, Federa test exercise. The exercise was quickly transformed into an infollowed tense review of the actual state of preparedness. This was ess. readin improve to s measure al by the taking of all practic is The National Plan for Civil and Defense Mobilization part that in ated anticip is change no currently being rewritten, but Board. the of ns functio pertaining to the emergency dness Executive Order 11094, assigning emergency prepare issued was s agencie ial financ other functions to the Board and Board's February 26, 1963. This Executive Order supersedes the Febru1-20, Order zation Mobili Defense in assignments as set forth ary 15, 1956. ion was The Board's Emergency Plan for an Attack Situat brought up-to-date. attack The basic financial policies applicable to an te. be adequa to found were y econom situation and a war damaged ng: followi the for made be on provisi These policies require that a. financial The maintenance of the money, credit, and system. b. ng proThe continuance of banking operations includi vision for liquidity and credit. c. The equitable sharing of war losses. d. y. The decentralization of adequate supplies of currenc e. to postThe availability of bank deposits according attack needs. f. on The clearance of checks including those drawn destroyed banks. g. essential The availability of new bank credit for purposes. h. for essenGovernment guarantee of private financing on reasontial purposes, if not otherwise available able terms. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3111 -3Heretofore, the Board, the Federal Open Market Committee, and the Federal Reserve Banks established emergency lines of succession to fill war-caused vacancies until such time as such vacancies could be filled in the normal manner. There has been no need to modify these arrangements. Also, heretofore, the Board, the Federal Open Market Comcy mittee, and the Federal Reserve Banks provided for the emergen of places relocation of their operations in the event their normal this In attack. an business should become inoperable as a result of e continu ons operati connection, duplicate records essential for wartime ion sites. relocat at basis to be maintained on a regularly scheduled arrangeDuring the past year, only minor changes in the relocation were made. changes ments were found necessary and these med The National Shelter Policy, announced in 1958 and reaffir new all in shelter fallout of in 1961, encourages the incorporation feasible Federal buildings and in all existing Federal buildings where Reserve Federal to applied at reasonable cost. This policy has been g that facilities in order to provide all reasonable means for assurin funcwartime al essenti the System will be capable of performing its standards have tions. At present, fallout shelters meeting Government all other in planned been completed in seventeen buildings, and are buildings containing areas with suitable protection. ons Guidance to Federal Reserve Banks on emergency operati 30, June ending year the remains as described in the Board's report for Guidets: documen ng followi 1962. This guidance is contained in the cy Operations lines on Emergency Monetary Policy, Guidelines on Emergen cy Regulations Emergen Board's the of the Federal Open Market Committee, operations agency fiscal on tions Nos. 1 and 2, and Treasury's instruc in an emergency. ed in the Based on the guidance and standby authority contain tially comabove documents, the Federal Reserve Banks have substan tions to instruc cy emergen of ution distrib and pleted the preparation Such instrucall banking institutions in their respective districts. ng in the immetions are designed to keep the banking system operati rs on (1) the diate postattack period. They include Emergency Circula (2) the agents, distribution of currency and the use of emergency cash the (3) agents, collection of checks and the use of emergency check t discoun and collection of non-cash items, and (4) emergency credit policies. Federal Reserve It was reported previously that a supply of based on supply years' notes had been built up (equivalent to a 2-1/2 the to damage of lity current use) as a hedge against the possibi http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -4facilities of the Bureau of Engraving in the event of an attack. At the close of the reporting period, approximately 83 per cent of unissued Federal Reserve notes had been decentralized to the vaults of Federal Reserve Banks and branches. In addition, a total of $185 million of issued Federal Reserve notes and silver certificates has been prepositioned in the vaults of selected emergency Cash Agents as a part of a program of maximum readiness to overcome the hazards of disrupted communications and transportation. The Board and Federal Reserve Banks maintain lists of Actions applicable to various degrees of interReadiness Defense Defense Readiness Conditions. When a particuor tensions national lar Defense Readiness Conditicnwas declared during the Cuban crisis, such declaration together with the lists of actions made it possible for the Board and the Federal Reserve Banks to know the nature of the emergency, the types of actions being taken and the general state of readiness within the Federal Reserve System. 4. Effectiveness. The effectiveness of the program has been tested against a variety of possible attack patterns and during the Cuban crisis. The results indicate that the measures being taken give reasonable assurance that the essential wartime functions of the Federal Reserve System •in support of the money, credit, and financial system can be maintained in a postattack emergency. 5. Current Need. The program will be needed as long as any potential enemy has the capability of launching a massive nuclear attack upon the United States. The program contributes to the over-all defense Posture of the nation, to the effectiveness of the family of deterrents to attack, and to the nation's preparedness to maintain the money and credit system if attacked. 6. Small Business. The program for the continuity of the essential wartime functions of the Federal Reserve System relates directly to the Board and Federal Reserve Banks, and indirectly to banking instia contutions and other businesses large and small capable of making assumed is it Since ion. reconstruct and tribution to the war effort that the large cities, the industrial-population concentrations, and with weapons financial centers might be the natural objects of attack and utilization the on placed. been has of mass destruction, emphasis vulnermore the of outside s institution banking Preparation of small able target areas to serve the smaller business enterprises upon which reconreliance must be placed to support military, civil defense, and struction operations. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ,A, -57. Major Problems. There is only one major problem which stands in the way of improving the effectiveness of this program. It is the problem of reaching Government-wide agreement on a plan for the equitable sharing of war losses. Lack of progress in resolving this problem has been brought to the attention of the Director of the Office of Emergency Planning. 8. Program Changes. No change in the program is contemplated. Changes in ways and means for furthering the program will be made as needed, particularly as needed to meet changes in enemy capabilities 9. Standby Programs. There are two programs which might properly come under this heading. One pertains to the equitable sharing of war losses, mentioned above; the other pertains to the postattack Utilization of bank examiners. The three Federal supervisory agencies, together with the Federal Reserve Banks, have agreed to look to their examination personnel as the primary source of reserve manpower. They have further agreed that this manpower should be utilized in a cooperative manner to meet the most urgent needs, including staffing requirements of Federal Reserve Banks, emergency Check Agents and Cash Agents, and banking institutions which may have difficulties in continuing or re-establishing operations. 10. Organizational Changes. There have been no organizational changes for administering this program during the past year. 11. Future Objectives. Future objectives are to keep our preparedness measures current and to constantly improve our readiness. On the basis'of foreseeable needs to cope with increasing missile capabilities and decreasing warning time, emphasis will be placed on: (1) Defense Readiness Conditions (DEFCONs) procedures, (2) improving fallout protection, (3) completing and prepositioning emergency documents, (4) developing standby plans for the equitable sharing of war losses, and (5) continuing the decentralization of currency to Federal Reserve Banks and Cash Agent Banks. 12. Availability of Funds. Funds are made available as needed to carry on the preparedness responsibilities of the Board and the Federal Reserve Banks. Since the operating funds for the Board and the Banks are not derived from Congressional appropriations, the Board has sought to limit expenditures to those kinds of needs which Congress has approved in making appropriations to other Government agencies. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3114 -6Part II Preparedness of Banking Institutions 1. Program. The Board is responsible for the development of plans, in cooperation with the Department of the Treasury, and the Federal g Deposit Insurance Corporation, to encourage preparedness by "bankin ns operatio their of ty continui the assure to institutions" in order in the event of enemy attack. 2. Authority. The authority for the conduct of this program is derived from Executive Order 11094, February 26, 1963. g 3. Activities. Activities under this program relate to (1) providin (2) and , guidance to banking institutions on preparedness measures guidencouraging banking institutions to take effective action on the ance given. General guidance on both preattack preparedness measures and postattack banking operations, contained in seven booklets prepared by the Banking Committee on Emergency Operations with the approval of Federal and State bank supervisory agencies, has been supplemented distributed to all banks. This general guidance has been contained ns With detailed instructions on postattack banking operatio more as Banks in Emergency Circulars issued by the Federal Reserve fully described in Part I. In October 1962, at the time of the Cuban crisis, the commercial Presidents of the Federal Reserve Banks reminded all ness in the prepared bank of banks individually of the importance e and immediat give to them urged Government's defense plans, and similar by followed was This serious attention to preparedness. each State Bankers messages from the American Bankers Association and were largely messages timely these that Association. It is believed ness. prepared bank in ent improvem tial responsible for the substan al bank One of the most important elements of the commerci records of Preparedness program is the maintenance of duplicate order to dispell information essential for postattack operations. In excessive, several any impression that the cost of such a program is al banks of varying Reserve Banks conducted pilot programs in commerci sizes to demonstrate that actual costs are not excessive. participated During the past year, the Federal Reserve Banks the for plans in eight Regional Mobilization Conferences at which State with d discusse maintenance of money, credit, and banking were . and local officials and with representatives of business and industry nce continua the and l, The plans met with understanding and approva relied upon of banking operations in a postattack emergency is being g survivin of tion mobiliza in support of all other plans for the resources. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 311_5 -7the progress being 4. Effectiveness. In order to keep abreast with ness to serve the made by commercial banks in improving their readi ners make inquiry as to nation in the event of an attack, bank exami mation contained in What is being done. The preparedness infor ly. Based on such tabuexaminers' reports is tabulated periodical initiating a preparedness lations, it appears that the number of banks June 30, 1962, and 1963. program increased over 42 per cent between sent approximately 74 Banks now participating in the program repre the number of per cent of the total deposits of all banks. While with the total number of • banks participating is still small compared a substantial part of total banks, the participating banks represent facilities and deposits. banking capacity as measured bcth by banking this program is based on the 5. Current Need. The current need for would be essential to the belief that a functioning banking system vement of adequate preparednation in time of war, and that the achie continued functioning ness in time of peace is needed to assure the of bank operations in the event of nuclear attack. banking institu6. Small Business. The program relates directly to my, to econo e the entir tions, large and small, and indirectly to vulless in ed locat small business as well as large. Small banks ttack posta a in role r a large nerable areas must be prepared to assume vulmore in banks e to large emergency as a result of possible damag nerable areas. carrying out the program 7. Major Problems. The major problems in the need for are (1) lack of realization on the part of many banks of ions, locat e secur ngly seemi preparedness measures because of their program ss redne prepa ate adequ an (2) a belief on the part of some that preparedness activities Will cost too much, and (3) a tendency to let ons. drag during periods of quiescence in international tensi 8. Program Changes. No program changes are contemplated. a standby program. 9. Standby Programs. The entire program is is directed toward preparedness for any future emergency. It es for the pro10. Organizational Changes. No organizational chang motion of the program are contemplated. tive is to continue the 11. Future Objectives. The future objec overcoming the major problems promotion of the program, largely by set forth above. 12. Availability of Funds. promotion of this program. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the There has been no lack of funds for 3116 -8Part III Guaranteed Loan Program under regulations of the 1. Program. The Federal Reserve Banks, of the United States in Board of Governors, act as fiscal agents Government guarantees of deconnection with the V-loan program for rnors, after consultation fense production loans. The Board of Gove cribes fees, rates, and procedures with the guaranteeing agencies, pres es. to be utilized in connection with such guarante program was inaugurated under 2. Authority. The present V-loan 301 of the Defense Production authority of the provisions of section and the President's ExecuAct of 1950, approved September 8, 1950, . The original Executive tive Order 10161, dated September 9, 1950 10480, dated August 14, Order was superseded by Executive Order 8, 1959. Under the law, 1953, and Executive Order 10819, dated May dments of 1960, authoras amended by the Defense Production Act Amen , will terminate on ity for the program, unless further extended June 30, 1964. Executive Orders of the 3. Activities. Pursuant to the law and urement agencies of the GovernPresident, certain designated proc s made by private financing ment are authorized to guarantee loan subcontractors, and others institutions to finance contractors, nt defense contracts for the engaged in the performance of Governme deliveries or services for the purpose of expediting production and by the Defense Production National defense. By an amendment made be issued with respect Act Amendments of 1953, guarantees may also ontractors or other subc to loans made to finance contractors and n of the termination atio empl persons in connection with or in cont of their defense contracts. designated guaranteeAt the outset of the program, the Army, Navy, Air Force, ing agencies were the Departments of the and the General Services AdCommerce, Interior, and Agriculture, Energy Commission and Defense ministration. In 1951, the Atomic also designated as guaranteeing Materials Procurement Agency were 0 of August 14, 1953, the Defense agencies. By Executive Order 1048 abolished and its functions transMaterials Procurement Agency was nistration. By Executive Order ferred to the General Services Admi onal Aeronautics and Space Admin10819, dated May 8, 1959, the Nati anteeing agency. By Executive istration was designated as a guar , and a directive of the DepartOrder 11062, dated November 19, 1962 1962, the Defense Supply Agency ment of Defense, dated December 8, ed as a guaranteeing agency. of the Department of Defense was designat lable under guarantee agreeOn June 30, 1963, credit avai . Of this amount, approximately ments outstanding totaled $170,378,000 by the Government. On 73 per cent on the average was guaranteed ,764,000, and there was $139 to June 30, loans outstanding amounted 000. Available credit 614, al $30, available to borrowers an addition http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3117 -9under the guarantee agreements outstanding by the various agencies was as follows: Department of the Army Department of the Navy Department of the Air Force $ 26,961,000 101,127,000 42,290,000 From the beginning of the program to June 30, 1963, net ent income of the guaranteeing agencies from guarantee and commitm shed establi ng deducti after loans, ed fees and interest on purchas agents, losses and expenses of the Federal Reserve Banks as fiscal was as follows: Department of the Army Department of the Navy Department of the Air Force General Services Administration Atomic Energy Commission Department of Commerce Total net income $ 5,517,000 11,281,000 14,395,000 6,266,000 509,000 6,000 $37,974,000 loans it The Department of the Army estimates that of the DeThe ctible. has purchased approximately $2,272,000 is uncolle ed purchas has it partment of the Navy estimates that of the loans ed estimat these g approximately $294,000 is uncollectible. Assumin time this at ent Governm losses are realized, the net income to the relatively on the guaranteed loan program is over $35 million. The of ment Depart and ion small net incomes of Atomic Energy Commiss unthan rather program the in Commerce reflect smaller activity satisfactory experience. an There has existed since the inauguration of the V-lo guaranthe between anding underst and tion program complete coopera and the Federal teeing agencies, the staff of the Board of Governors, have been promptly Reserve Banks. Any differences that have arisen connected with settled and the primary purpose in the minds of all defense contracof the program has been to facilitate the financing ion Act of Product tors as provided in section 301 of the Defense Orders. 1950, as amended, and the implementing Executive was successful and 4. Effectiveness. The guaranteed loan program during the Korean and fulfilled a useful purpose during World War II of defense prot suppor conflict. It has continued to be useful in mechanism whereby a s provide duction, but on a more limited scale. It business small larly particu defense contractors and subcontractors, their finance to ry necessa concerns, can arrange to borrow the funds ent Governm of means by banks defense production through their local funds ent Governm of advance the guaranteed loans rather than through or direct Government loans. er 1950 through From the beginning of the program in Septemb 30, 1963, 1,611 loans totaling $3,458,740,000 were authorized June http://fraser.stlouisfed.org by the procurement agencies which guarantee such loans. Federal Reserve Bank of St. Louis 31 1,‘,i -10During the 12 months ending June 30, 1963, there was disbursed on outstanding loans approximately $214,080,000 most of which was revolving credits. 5. Current Need. The current need for this program may be drawn from its current activity and the desirability of being ready to support an expanded procurement program when needed. The following tabulation shows the number and amount of guaranteed loans authorized at the end of each month in the period June 1962 through June 1963. 1962 June 30 July 31 August 31 September 30 October 31 November 30 December 31 1963 January 31 February 28 March 31 April 30 May 31 June 30 Guaranteed loans authorized to date Amount (In thousands of dollars) Number 3,422,075 1,593 3,423,325 1,594 3,432,625 1,596 3,438,725 1,598 3,440,475 1,599 3,441,220 1,600 3,443,070 1,601 1,605 1,606 1,608 1,610 1,610 1,611 3,447,620 3,448,470 3,450,070 3,456,265 3,456,865 3,458,740 6. Small Business. Classifications of guaranteed loans by size of the borrower were discontinued beginning 1960 due to the relative inactivity of the program. At that time, (see report for last quarter 1959) approximately three-fourths of the number of loans authorized were to borrowers having less than 500 employees. It is believed that this proportion of loans to small business has not significantly changed. 7. Major Problems. There are no major problems confronting the Board and Federal Reserve Banks in carrying out this program. 8. Program Changes. The Federal Reserve Banks have plans to conduct the essential operations of the banks from relocation offices in the event of an emergency. The Reserve Banks plan to continue to perform such fiscal agency functions under the V-loan program as the situation then prevailing permits. 9. Standby Programs. Plans contemplate that the Federal Reserve Banks and the Board will be prepared to participate in an expanded Program suitable to any future emergency needs. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3119 -1110. Organizational Changes. There have been no organizational changes in the conduct of this program during the past year. 11. Future Objectives. As stated in section 301 of the Defense Production Act, the objective of the guaranteed loan program continues to be "to expedite production and deliveries or services under Government contracts." 12. Availability of Funds. The guaranteeing agencies are authorized to use any monies appropriated to them for defense purposes to meet any costs and expenses in connection with the V-loan program. The availability of funds is adequate. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 31.20 Item No. 1JNIT2D Of AMERICA 9/11/63 E SYSTEM BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERV WASHINGTON, D. C. In the Matter of the Application of ' r DENVER U. S. BANCORPORATION, INC. Denver, Colorado BHC-68 Pursuant to section 3 of L.e Bank Holding Company Act of 1956 ORDER GRANTING REQUEST FOR ORAL ARGUMENT having Protesting Banks in the above -entitled matter argument before the requested that the same be set down for oral nt's reply to the Board; the Board having considered fully Applica Protesting Banks' said request for oral argument, IT IS ORDERED that request be, and it hereby is, granted. nt shall be IT IS FURTHER ORDERED that said oral argume er 20, Public and shall be held commencing at 10 a.m. on Septemb 20th and 1963, in Room 1202 of the Federal Reserve Building, that participation Constitution Avenue, N. W., Washington, D. C; in the oral argument shall be limited to counsel for Protesting http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 1 1' 2 -2iate governmental Banks and Applicant, and to representatives of appropr authorities. er, 1963. Dated at Washington, D. C., this 12th day of Septemb By order of the Board of Governors. (Signed) Merritt Sherman Merritt Sherman, Secretary. (SEAL) http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3122 UNITED STATES OF AMERICA Item No. /163 SYSTEM BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE 6 WASHINGTON, D. C. In the Matter of the Application of FIRST COLORADO BANKSHARES, INC., Englewood, Colorado BHC-69 pursuant to section 3 of the Bank Holding Company Act of 1956 ORDER GRANTING REQUEST FOR ORAL ARGUMENT Protesting Banks in the above-entitled matter having nt before the requested that the same be set down for oral argume to the Board; the Board having considered fully Applicant's reply ting said request for oral argument, IT IS ORDERED that Protes Banks' request be, and it hereby is, granted. nt shall be IT IS FURTHER ORDERED that said oral argume September 20, 1963, public and shall be held commencing at 2 p.m. on Constitution in Room 1202 of the Federal Reserve Building, 20th and in the oral Avenue, N. W., Washington, D. C; that participation ting Banks and argument shall be limited to counsel for Protes http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3123 -2- governmental Lpplicant, and to representatives of appropriate authorities. er, 1963. Dated at Washington, D. C., this 12th day of Septemb By order of the Board of Governors. (Signed) Merritt Sherman Merritt Sherman, Secretary. (SEAL) http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis .1124 Item No. 7 9/11/63 UNITED STATES OF AMERICA AL RESERVE SYSTEM BEFORE THE BOARD OF GOVERNORS OF THE FEDER WASHINGTON, D. C. In the Matter of the Application of OITO BREMER COMPANY 6) ' for a determination pursuant to section 4(c)( with 1956 of Act ny Compa of the Bank Holding respect to Alex State Agency, Inc. Detroit State Agency, Inc. Farmers & Merchants Breckenridge Agency, Inc.' Lisbon Insurance Agency, Inc. I Polk County State Agency, Inc. Walsh County Insurance Agency, Inc. 1 DOCKET NO. BHC-70 1 ORDER sota, a bank holding The Otto Bremer Company, St. Paul, Minne of the Bank Holding Company company within the meaning of section 2(a) request for a determinaAct of 1956 (12 U.S.C. § 1841(a)), has filed a Reserve System that six tion by the Board of Governors of the Federal activities are of the kind corporations proposed to be formed and their described in section 4(c)(6) of the Act and section 222.5(h) of the so as to make it unnecessary Board's Regulation Y (12 C11 222.5(b)), for the prohibitions of section I. of the Act with respect to acquisi- organizations to apply in tion and retention of shares in nonbanking order to carry out the purposes of the Act. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3125 -2- The proposed corporations as to which a determination is requested are: Alex State Agency, Inc., Alexandria, Minnesota, Detroit State Agency, Inc., Detroit Lakes, Minnesota, Farmers & Merchants Breckenridge Agency, Inc., Breckenridge, Minnesota, Lisbon Insurance Agency, Inc., Lisbon, North Dakota, Polk County State Agency, Inc., Crookston, Minnesota, and Walsh County Insurance Agency, Inc., Grafton, North Dakota. Act A hearing was ordered pursuant to section 4(c)(6) of the and conducted in accordance with sections 222.5(b) and 222.7(a) of the of Board's Regulation Y and with the provisions of the Board's Rules Practice for Formal Hearings (12 CFR 263). On August 9, 1963, the he Hearing Examiner filed his Report and Recommended Decision wherein ons recommended that the request with respect to the said six corporati be approved, and the time for filing with the Board exceptions and brief to the recommended decision of the Hearing Examiner has expired and no exceptions or brief have been filed. The Board, having given due consideration to all relevant aspects of the matter, hereby adopts the findings of fact, conclusions of law, and recommendations as set forth in the Hearing Examiner's Report and Recommended Decision. Accordingly, IT IS HEREBY ORDERED, on the basis of the findings of fact and conclusions of law hereinbefore adopted, that Alex State Agency, Inc., Detroit State Agency, Inc., Farmers & Merchants Breckenridge Agency, Inc., Lisbon Insurance Agency, Inc., Polk County State http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3126 -3and their ac iviAgency, Inc., and Walsh county Insurance Agenc:i, Inc., the business of banking ties aie determined to be so closely related to nt thereto or of managing or controlling banks as to be a proper incide n and as to make it unnecessary for the prohibitions of sectio 4 of the to carry out the Bank Holding Company Act of 1956 to apply in order t with respect Purposes of that Act, and, therefore, Applicant's reques provided to the said six corporations shall be, and hereby is, granted; by the Board if that this determination shall be subject to revocation such a the facts upon which it is based should substantially change in no longer applicable. manner as to make the reasons for such determination ber, 1963. Dated at Washington, D. C., this 11th day of Septem By order of the Board of Governors. Voting for this action: Chairman Martin, and Governors Balderston, Robertson, Shepardson, and King. Absent and not voting: Governors Mills and Mitchell. (Sj4„ned) ierri Sheraan Merritt Sherman, Secretary. [SEAL] http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 31 27 BOARD OF GOVERNORS ..... GOveh•. FEDERAL RESERVE SYSTEM • , •!r0 .to.tUkik, Item No. OF THE 8 9/11/63 1 . WASHINGTON 25. D. C. 2' — ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD 4• ' ,4 *•4t RESt':•• September 12, 1963 Mr. John L. Nosker, Vice President, Federal Reserve Bank of Richmond, Richmond, Virginia. Dear Mr. Nosker: In accordance with the request contained in your letter of September 5, 1963, the Board approves the designation of the following employees as special assistant examiners for the Federal Reserve Bank of Richmond for the purpose of participating in examinations of State member banks except the banks listed opposite their names. Everett G. Melton The Bank of Virginia, Richmond, Virginia. Robert E. Coffman - The Bank of Virginia, Richmond, Virginia. State-Planters Bank of Commerce and Trusts, Richmond, Virginia. Bank of White Sulphur Springs, White Sulphur Springs, West Virginia. Herbert T. Gordon - State Planters Bank of Commerce and Trusts, Richmond, Virginia. Russell H. Sherry - Southern Bank and Trust Company, Richmond, Virginia. Authorizations heretofore given your bank to designate these individuals as special assistant examiners are hereby canceled. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BOARD OF GOVERNORS Item No. OF THE 9 9/11/63 FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD September 12, 1963 Mr. John L. Nosker, Vice President, Federal Reserve Bank of Richmond, Richmond, Virginia. Dear Mr. Nosker: In accordance with the request contained in your letter of September 5, 1963, the Board approves the designation of Woody Y. Cain as a special assistant examiner for the Federal Reserve Bank of Richmond for the purpose of participating in examinations of State member banks. The authorization heretofore given your bank to designate Mr. Cain as a special assistant examiner is hereby canceled. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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