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Minutes for To: Members of the Board From: Office of the Secretary September 16, 1964. 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 Minutes of the Board of Governors of the Federal Reserve System ell Wednesday, September 16, 1964. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Martin, Chairman Balderston, Vice Chairman Robertson Shepardson Mr. Sherman, Secretary Mr. Fauver, Assistant to the Board Mr. Johnson, Director, Division of Personnel Administration Mr. Hexter, Assistant General Counsel Mr. Shay, Assistant General Counsel Mr. Sammons, Adviser, Division of International Finance Mr. Daniels, Assistant Director, Division of Bank Operations Mr. Goodman, Assistant Director, Division of Examinations Mr. Leavitt, Assistant Director, Division of Examinations Mrs. Semia, Technical Assistant, Office of the Secretary Supervisory Review Examiner, Egertson, Mr. Division of Examinations Mr. McClintock, Supervisory Review Examiner, Division of Examinations Circulated or distributed items. r hich The following items, copies are attached to these minutes under the respective item numbers inclicated, were approved unanimously: Item No. Letet-r to Union Bank and Trust Company, Kokomo, Indiana, oving the establishment of a branch on East Boulevard. tettel-- to Citizens Banking Company, Anderson, Indiana, 1,1 °ving the establishment of a branch at 11th and -14 Streets. 1 2 9/16/64 -2Item No. letter to The Oregon Bank, Portland, Oregon, approving the establishment of a branch in Salem, with the understanding that capital and surplus was to be increased bY the sale of new common stock for cash prior to the opening of the branch. 3 .4.?tter to Citizens Trust and Savings Bank, South Haven, 4 ' 10ligan, approving a proposed investment in bank premises. Letter to Chelsea National Bank, New York, New York, glsanting its request for permission to maintain reduced 5 to Crocker-Citizens National Bank, San Francisco, letter corporation ' e 6 r eserves. adfornia, granting permission to organize a A.rider section 25(a) of the Federal Reserve Act, to be :tr_Tn as Crocker-Citizens International Corporation, "1°4n Francisco, for the purpose of engaging in international ! ,c) foreign banking or financial operations, and trans'41tting a preliminary permit. tter to Chase International Investment Corporation, : e4 York, New York, approving an extension of time to , equire shares of Banque Ivoirienne de Developpement 4.naustriel, Abidjan, Ivory Coast. 7 etter to the Federal Deposit Insurance Corporation me egarding the application of Bank of Menomonie, nomonie, Wisconsin, for continuation of deposit plelsurance after withdrawal from membership in the cleral Reserve System. 8 Let ter9 to the Federal Reserve Bank of New York ing payment to an employee of salary in excess ao the established grade maximum. Messrs. Johnson, Shay, Daniels, Egertson, and McClintock then threw Ppplication of Mellon Bank International (Item No. 10). elIteillber 15, 1964, the Board discussed information set out in a On '3 1 :1 9/16/64 -3- distributed memorandum of September 11, 1964, from the Division of 4aminations regarding the application of Mellon Bank International, Pittsburgh, Pennsylvania (a corporation organized under section 25(a) Of the Federal Reserve Act), for permission to purchase common stock HI-Koppers Cement Corporation, Makati, Rizal, Philippines. It was br°ught out that originally it had been planned that the equity in 111-Koppers would be divided equally between Koppers International es A. (a wholly-owned subsidiary of Koppers Company, Inc.), and House Investments, Inc. (a Philippine corporation). However, since Philippine 1 limited holdings by single parties in basic mining enterprises to ' 141 15 Per cent of the voting stock, it was decided that those two participants 14°41d each take 15 per cent of the voting stock, and an additional 15 I5er cent would be offered to Mellon Bank International. It was expected that with the Bank's support, Koppers International and House of InvestInents would be able to elect at least six of the nine HI-Koppers directors. It 14a5 planned that Koppers International would take all of the non-voting Stock. During discussion questions were raised as to the consistency of the Proposed investment with the spirit of Philippine law and with the 1314(134 Purpose of section 25(a) of the Federal Reserve Act to further the r°reign commerce of the United States. Question was raised also regarding the Propriety of an Edge corporation entering into what appeared to be elY an equity transaction, whereas section 25(a) contemplated operations ' 1111 el 9/16/64 c -4- in international finance and commerce. Action on the application was deferred pending the obtaining of additional information bearing upon these questions. There had now been received a telegram, copies of which were distributed at the meeting, indicating that House of Investments and related companies would take at least 36 per cent of the voting stock Of HI-Koppers. That investment, added to the 15 per cent to be taken by Mellon Bank International and 15 per cent by Koppers International, 1.1°1-11d total 66 per cent, which was enough to elect two-thirds of HI- 1C(31°Pers nine directors. The telegram stated also that the proposed 41cling of the non-voting stock conformed with Philippine law, and that the 15 per cent limit on voting stock in mining companies was frequently Illet by splitting the voting stock among related companies, as House of Ihvestments intended to do, but Koppers International did not intend to --ow that plan. The proposed capital structure and articles of ille°rPoration of HI-Koppers had been submitted to the Philippine Seettrities and Exchange Commission, whose jurisdiction extended to 0 1 8e1Y-held corporations, and whose approval was expected momentarily. 14ell°n Bank International would not invest until that approval was given. t elegram added that the project was attractive in helping the balance 'Dr 13aYments because most of the financing would come from sources outside the United States, whereas Koppers would receive payments for construction Of 144-ant and for assistance in its management, and Mellon Bank International a 1,, tjJ. 9/16/64 I -5- aril. Koppers would receive dividends. The project would help the Philippine c°n°mY--specifically, the cement industry--by helping to insure availability Of cement at a reasonable price for Philippine industrial development. It ' l/Ets believed that substantial opportunity would be offered for export of United States equipment. Governor Robertson stated that he believed that the question of the Philippine law was not one for the Board but for the Philippine EtUt horities to decide on the basis of all the facts in front of them. The question of propriety of the investment for an Edge corporation, 11°1/ever, was significant because this was the first time this precise i-ttlation had been presented since the adoption of the September 1963 • ision of Regulation K, Corporations Engaged in Foreign Banking and l'illancing under the Federal Reserve Act. Mr. Goodman commented that approval of the capital structure and ' 6.1rtieles of incorporation of HI-Koppers by the Philippine Securities and tXelv4 -nge Commission did not necessarily mean that the Commission would 14110 the shareholders were, since House of Investments was really • el08ed investment trust. cture of HI-Koppers. The Commission would know the corporate As for the nature of the enterprise, there was • b1 -42k market for cement in the Philippines, and it was hoped that the 1:)1'c)cilletive capacity of HI-Koppers would help to make the price more 144148tic. However, the investment would hardly mean that Mellon Bank Itte rnational would be in the cement business. The project might be 31_61 9/16/64 -6- 8aid to be developmental and, in his opinion, it was consistent with the sPirit of the Edge Act; the Board had given approval to some transactions that Were substantially similar. Governor Robertson observed that the basic question was whether, 1/nder Regulation K, the transaction could be said to be designed to rtIrther the foreign commerce of the United States. The development of the cement industry of the Philippines was a perfectly worthy purpose, /314 whether it justified investment by an Edge corporation was a difrerent matter. In his view, approval of the application would set a 1)1'ecedent under Regulation K for an investment that would not further the commerce of the United States. Chairman Martin said that his general approach to the whole question trade was that almost any investment abroad that led to exports of ecilliPment or material helped commerce; as he saw it, failure to recognize th4t fact, in the light of the changes that had occurred in the world 111 the past 15 to 20 years, would have caused the United States to lose 4 l'eat many opportunities if it had not been for the work of the Export- 11111t Bank. He added that he gave little or no weight to the claim that the transaction would help the balance of payments problem; the 1/111ollrit involved was too small. Governor Robertson stated that, while he would not question a or the purpose here sought, if the Board approved an equity ' 31 " 9/16/64 -7- investment in a cement plant, he could not see that a limitation could e°nsistently be placed on any investment by an Edge corporation, and the need for approval of investments might as well be eliminated. Regulation K purported to limit Edge corporation investments unless they met certain conditions, but the limitations in the regulation appeared to mean nothing in the present application. After further discussion, the application was approved, Governor Robertson dissenting for the reasons he had expressed. A copy of the letter informing Mellon Bank International of the Board's action is attached as Item No. 10. Messrs. Hexter and Sammons then withdrew. Check clearing function at Cleveland Reserve Bank. Governor 841clerston, referring to concern the Board had felt about a year ago l'earding the check clearing operation at the Federal Reserve Bank of Cleveland, commented that during his visit at the Bank earlier this week he 1, "ad been shown operating data that reflected a substantial inprovement. Banks owned by business. Governor Robertson asked Mr. Fauver It 411Y information released by the Board might have formed the basis for 411 article in today's Wall Street Journal regarding acquisition of banks bYblasinesses. Mr. Fauver responded that there did not appear to be any l'elation between the article and any material recently published by the 'u) although there might be some connection with the Board's recome tion to Congress, expressed in the Annual Report for 1963 and earlier, l' ' 9/16/64 that -8- the Bank Holding Company Act be extended to cover one-bank holding eQIIIPanies. 4 Governor Robertson commented that the article might point to growing public recognition of a trend that the Board Should watch care- r1114. A number of banks had been acquired by businesses that sought to Use the financial resources of the banks as part of their over-all busi- ness. In his view, it would be well for the Board to be alert to problems that might arise from such arrangements, even if the extension of the Holding Company Act that the Board had recommended was not adopted. The meeting then adjourned. Secretary's Notes: Governor Shepardson today approved on behalf of the Board the following items: a Letter to the Federal Reserve Bank of Cleveland (attached Item No. 11) °Iring the appointment of Robert T. Meredith as assistant examiner. ' 14)1 te Memorandum from the Division of Research and Statistics dated Sep! co ber 9, 1964, recommending the appointment of Francis R. Pawley as 110"slatant in that Division, effective to December 31, 1964, on a tem,:al'Y contractual basis with compensation at the rate of $60 per day tol ta;.each day worked for the Board and, when in travel status, transport lc'n expenses and per diem to be paid in accordance with the Board's l'avel regulations. In accordance with Executive Order No. 11176 and the Treasury regulations issued under that order, a letter was sent today over the signature of Chairman Martin to the Secretary of the Treasury requesting that information returns made by commercial banks under section 6011(d)(2) of the Internal Revenue Code of 1954, as added by section 3(a) of the Interest Equalization Tax Act, be open to inspection at the Treasury Department's offices by four specified members of the Board's staff duly authorized by the Board. A copy of the letter is attached as Item No. 12. C Secretair 1, 1, Ne t, I 3164 Item No. 1 9/16/64 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADOREE19 orricIAL CORRESPONDENCE TO THE BOARD September 16, 1964. Board of Directors, Union Bank and Trust Company, Kokomo, Indiana. Gentlemen: The Board of Governors of the Federal Reserve System approves the establishment by Union Bank and Trust Company, Kokomo, Indiana, of a branch at 920 East Boulevard, Kokomo, Indiana, 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 (The letter to the Reserve Bank stated that ion Board also had approved a six-month extens ; of the period allowed to establish the branch ted, and that if an extension should be reques the procedure prescribed in the Board's letter ed.) of November 9, 1962 (S-1846), should be follow 1 Item No. 2 9/16/64 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD September 16, 1964. Board of Directors, Citizens Banking Company, Anderson, Indiana. Gentlemen: The Board of Governors of the Federal Reserve System approves the establishment by Citizens Banking Company, Anderson, Indiana, of a branch at the southeast corner of the intersection of 11th and Main Streets, Anderson, Indiana, 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.) 66 BOARD OF GOVERNORS Item No. OF THE 3 9/16/6 FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS OFTICIAL CORRESPONDENCE TO THE BOARD September 16, 1964. Board of Directors, The Oregon Bank, Portland, Oregon. G entlemen: The Board of Governors of the Federal Reserve System approves the establishment of a branch by The Oregon Bank at the northeast corner of Center and Church Streets, Salem, Oregon, provided the branch iS established within one year from the date of this letter. It is understood that capital and surplus will be increased bY at least $500,000 by the sale of new common stock for cash prior to ,411e opening of the branch. The •Board of Governors notes that Vice 4res1dent Galvin of the Federal Reserve Bank of San Francisco emphasized ,411 his letter to you of August 20, 1964, the need for strengthening the : ?ank's capital position over and above the $500,000 proposed increase. :n even larger sale of new stock would aid in providing for the present 1 4Pital needs of your bank and in providing for future growth of your , ,:ank on a sound basis. The Board strongly concurs in Vice President 'alvin's comments in this regard. Very truly yours, (Signed) Karl E. Bakke Karl E. Bakke, Assistant Secrttary. (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 Ifrocedure prescribed in the Board's letter of November 9, 1962 ks-1846), should be followed.) 3167 BOARD OF GOVERNORS Item No. 4 9/16/64 OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE SOAR() September 16, 1964. Board of Directors, Citizens Trust and Savings Bank, South Haven, Michigan. Gentlemen: Reserve Section ment in Savings for the and the lot. The Board of Governors of the Federal System approves, under the provisions of 24A of the Federal Reserve Act, an investbank premises by Citizens Trust and , Bank, South Haven, Michigan, of $350,000 remodeling of its main office and a branch acquisition and improvement of a parking Very truly yours, (Signed) Karl E. Bakke Karl E. Bakke, Assistant Secretary.. 3168 Item No. BOARD OF GOVERNORS 5 9/16/64 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS OFFICIAL CORRESI4 D141). TO THE UOARD September 16, 1964. Board of Directors, Chelsea National Bank, New York, New York. Gentlemen: With reference to your request submitted through the Federal Reserve Bank of New York, the Board of Governors, acting under the provisions of Section 19 of the Federal Reserve Act, grants permission to the Chelsea National Bank to maintain the same reserves against deposits as are required to be maintained by nonreserve city banks, effective as of the date it opens for business. Your attention is called to the fact that such Permission is subject to revocation by the Board of Governors. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. Item No. BOARD OF GOVERNORS 6 9/16/64 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD September 16, 1964, Mr. Joseph F. Hogan, First Vice President, Crocker-Citizens National Bank, 1 Montgomery Street, San Francisco, California 94120. Dear Mr. Hogan: The Board of Governors has approved the Articles of Association and the Organization Certificate, dated July 8, 1964, and as amended August 31, 1964, of Crocker-Citizens International Corporation, and there is enclosed a preliminary permit authorizing that Corporation to exercise such of the powers conferred by Section 25(a) of the Federal Reserve Act as are incidental and Preliminary to its organization. Except as provided in Section 211.3(a) of Regulation K, may not exercise any of the other powers conferred Corporation bh °Y Section 25(a) until it has received a final permit from the Board authorizing it generally to commence business. Before the 80ard will issue its final permit to commence business, the President, controller, or secretary, together with at least three of the directors, must certify (1) that each director is a citizen Of the United States; (2) that a majority of the shares of capital stock is held and owned by citizens of the United States, by corPorations the controlling interest in which is owned by citizens of the United States, chartered under the laws of the United States or of a State of the United States, or by firms or companies the co ntrolling interest in which is owned by citizens of the United S tates; and (3) that of the authorized capital stock specified in the Articles of Association all shall be subscribed and not less than $2,000,000 shall be issued and fully paid. Article FOURTH of the Organization Certificate and Article SEVENTH of the Articles of Association provide that the au thorized capital stock of the Corporation shall consist of 50,000 shares of $100 par value stock, of which, prior to the commencement °f business, all shall be subscribed and not less than $2,000,000 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Mr. Joseph F. Hogan -2- of the $5,000,000 authorized shall be issued and fully paid in. It is understood that all outstanding shares will be fully paid. The Board of Governors hereby consents that the remainder of the capital stock of the Corporation may be paid in upon call from the board of directors of the Corporation, provided that the Board of Governors shall have approved each such increase in Paid-in capital not more than 90 days prior to the date on which the increase is paid in. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. Enclosure 70 3171 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON September 16, 1964 Preliminary Permit IT IS HEREBY CERTIFIED that the Board of Governors of the Federal Reserve System, pursuant to authority vested in it by Section 25(a) Of the Federal Reserve Act, as amended, has this day approved the Articles of Association and Organization Certificate, dated July 8, 1964, and as amended August 31, 1964, of CROCKER-CITIZENS INTERNATIONAL eftPORATION duly filed with said Board of Governors, and that CROCKERCITIZENS INTERNATIONAL CORPORATION is authorized to exercise such of the Powers conferred upon it by said Section 25(a) as are incidental 4°4 preliminary to its organization pending the issuance by the Board °f Governors of the Federal Reserve System of a final permit generally to commence business in accordance with the provisions of said Section 25(a) 4°4 the rules and regulations of the Board of Governors of the Federal 44erve System issued pursuant thereto. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM (SEAL) By (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 3i72 Item No. BOARD OF GOVERNORS 7 9/16/64 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 C` , ADDRESS OFFICIAL CURRESPONDE! TO THE SOARD September 16, 1964. Chase International Investment Corporation, 1 Chase Manhattan Plaza, New York 5, New York. Ge ntlemen: Reference is made to your letter of August 27, 1964, ranemitted through the Federal Reserve Bank of New York, retcIlil_esting an extension of six months from September 30, 1964 of ne time within which your Corporation may acquire shares of 8Dnque Ivoirienne de Developpement Industriel ("BIDI"), Abidjan, I 151.•Y Coast, at a cost of about CFA Francs 60 million, or approx' mately US$250,000 (equivalent), under the specific consent granted DY the Board of Governors on September 30, 1963. Your letter of May 6, 1964 reported that, in accordance with the corporate law and practice in the Republic of the Ivory C°4et, the par value of each share of the capital stock of BIDI 1411 be CFA Francs 5,000 rather than CFA Francs 1,000 and that Your Corporation would acquire 12,500 shares rather than 62,500 as s ubmitted in your original proposal. It is noted from your letter of August 27, 1964 that not contemplated that the proposed investment will be made to September 30, 1964, but that negotiations are proceeding arid the basic investment as described in your letter of September 18, 1963 has not changed materially. it i In accordance with your request, the Board extends to 11erb c.= 31, 1965 the time within which your Corporation may purchase the Shares of BIDI. Very truly yours, (Signed) Karl E. Bakke Karl E. Bakke, Assistant Secretary. ), 4e) Tri Item No. BOARD OF GOVERNORS 8 9/16/64 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD September 16 1964. 14r. Timothy J. Reardon, Jr., A ssistant to the Chairman, ecleral Deposit Insurance Corporation, Washington, D. C. 20429 Dear Mr. Reardon: Reference is made to your letter of September 9, 1964, 011cerning the application of Bank of Menomonie, Menomonie, iseonsin, for continuance of deposit insurance after withdrawal , 'rft membership in the Federal Reserve System. There have been no corrective programs urged upon the bank, or agreed to by it, which have not been fully consummated, arid, in the Board's opinion, there are no such programs that it ruld be advisable to incorporate as conditions of admitting the bank to membership in the Corporation as a nonmember of the Federal "serve System. Very truly yours, (Signed) Karl E. Bakke Karl E. Bakke, Assistant Secretary. I Item No. BOARD OF GOVERNORS 9 9/16/64 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD September 16, 1964. CONFIDENTIAL (FR) Mr. Walter H. Rozell, Jr., Vice President, Federal Reserve Bank of New York, New York, New York. 10045. Dear Mr. Rozell: For reasons outlined in your letter of September 4: 1964, the Board of Governors approves the payment of salary in excess of the established grade maximum to Mr. Owen G. Patterson in his position as Semi-Senior Auditor. It is noted that Mr. Patterson will not be eligible for further salary increases unless he is reassigned to a higher grade or the maximum of the grade is raised. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. 3175 ..... is)0? Got,i. BOARD OF GOVERNORS Item No. 10 OF THE 9/16/64 FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS OFFICIAL CORRESPONDENCE A‘c,'1 • RESV" . . TO THE BOARD September 16, 1964. Mellon Bank International, cio Mellon National Bank and Trust Company, Mellon Square, Plttsburgh, Pennsylvania. G entlemen: In accordance with your request dated July 31, 1964, and on the basis of information furnished, the Board of Governors grants consent for your Corporation to purchase and hold 1,200,000 hares, par value Philippine Pesos 1 each, of the voting common S tock of HI-Koppers Cement Corporation, Makati, Rizal, Philippines, at a cost of approximately US$300,000, provided such stock is acquired within one year from the date of this letter. The Board also approves the purchase and holding of shares of HI-Koppers Cement Corporation within the terms of the above consent in excess of 10 per cent of your Corporation's eaPital and surplus. Very truly yours, Karl E. Bakke, Assistant Secretary. 3176 BOARD OF GOVERNORS Item No. 11 9/16/64 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS orrocom. CORRESPONDENCE TO THE BOARD September 17, 1964. CONFIDENTIAL (FR) Mr._HarryI4. Huning, Vice President, Federal Reserve Bank of Cleveland, Cleveland, Ohio. 44101 Dear Mr. Huning: In accordance with the request contained in your letter of September 14, 1964, the Board approves the appointment of Robert T. Meredith as an assistant examiner for the Federal Reserve Bank of Cleveland. Please advise the effective date of the appointment. It is noted that Mr. Meredith is indebted to first National Bank in Marietta, Marietta, Ohio. Accordingly, the Board's approval of the appointment of Mr. Meredith is given with the understanding that he will not participate in any examination of that Bank until his indebtedness has been liquidated. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 3117 Item No. 12 9/16/64 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON OFFICE OF THE CHAIRMAN September 16, 1964. The Honorable Douglas Dillon, Secretary of the Treasury, Washington, D. C. Dear Doug: In accordance with Executive Order No. 11176 and the Treasury regulations issued under that order, the Board of Governors °f the Federal Reserve System hereby requests that information returns 1 de by commercial banks under section 6011(d)(2) of the Internal .1ade R. Code of 1954, as added by section 3(a) of the Interest r414alization Tax Act, be open to inspection at the Treasury Departs offices (IET Reporting Unit, Office of Balance of Payments), dashington, D. C., by the following members of the Board's staff 41Y authorized by the Board: 1. Ralph A. Young, Adviser to the Board and Director, Division of International Finance; 2. Frederick R. Dahl, Chief, Special Studies and Operations Section, Division of International Finance; 3. Robert F. Gemmill, Economist, Special Studies and Operations Section, Division of International Finance; and 4. Frederick B. Ruckdeschel, Economist, Special Studies and Operations Section, Division of International Finance. Procedures have been established within the Board of Governors to m assure that inspection of these returns will be limited to the -embers of the Board's staff named above. Sincerely yours, Wm. McC. Martin, Jr.