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Minutes for September 18, 1964
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.
Chm. Martin
Gov. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
Gov. Mitchell
Gov. Daane
3178
Minutes of the Board of Governors of the Federal Reserve System
On Friday, September 18, 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.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mx.
Sherman, Secretary
Broida, Assistant Secretary
Bakke, Assistant Secretary
Young, Adviser to the Board and Director,
Division of International Finance
Noyes, Adviser to the Board
Fauver, Assistant to the Board
Brill, Director, Division of Research and
Statistics
Partee, Adviser, Division of Research and
Statistics
Solomon, Associate Adviser, Division of
Research and Statistics
Sammons, Adviser, Division of International
Finance
Katz, Associate Adviser, Division of International Finance
Axilrod, Chief, Government Finance Section,
Division of Research and Statistics
Eckert, Chief, Banking Section, Division of
Research and Statistics
Keir, Chief, Capital Markets Section, Division
of Research and Statistics
Bernard, Economist, Division of Research and
Statistics
Gemmill, Economist, Division of International
Finance
Money market review.
There were distributed tables on money
41/111.et factors for the period January-September 16, 1964, dealer positions
1/1 n
°uPon issues on selected dates during the period July 16-September 16,
'
1964, and U. S. capital flows.
31.?9
-2-
9/18/64
Mr. Bernard presented a report on developments in the Government
securities market and commented on the outlook for near-term Treasury
tinancing requirements, following which Mr. Partee discussed bank reserves,
bank credit, and the money supply.
Mr. Cemmill then reviewed recent
developments in the foreign exchange market.
Following the foregoing reports, all members of the staff except
Messrs. Sherman, Bakke, Young, Noyes, Fauver, and Sammons withdrew from
the meeting and the following entered the room:
Solomon, Director, Division of Examinations
Hexter, Assistant General Counsel
O'Connell, Assistant General Counsel
Shay, Assistant General Counsel
Daniels, Assistant Director, Division of Bank Operations
Goodman, Assistant Director, Division of Examinations
Leavitt, Assistant Director, Division of Examinations
Forrestal, Attorney, Legal Division
Egertson, Supervisory Review Examiner, Division of
Examinations
Mr. Poundstone, Review Examiner, Division of Examinations
Mr. Lyon, Review Examiner, Division of Examinations
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Discount rates.
The establishment without change by the Federal
ileserve Banks of New York, Philadelphia, and San Francisco on September 17,
1964) of the rates on discounts and advances in their existing schedules
1148
PITIlass" unanimously,
with the understanding that appropriate advice
d be sent to those Banks.
Distributed items.
The following items, copies of which are
a
ttached to these minutes under the respective item numbers indicated,
2,..P.P.E2y21 unanimously:
3180
9/18/64
-3_
Item No.
Letter to International Banking Corporation, New York,
New York, granting consent to purchase additional shares
Of The First National City Bank of New York (South Africa)
Linlited, Johannesburg, Republic of South Africa.
1
Letter to Wells Fargo Bank International Corporation,
San Francisco, California, granting consent to purchase
shares of ADELA Investment Company, S.A., Luxembourg.*
Telegram
to the Federal Reserve Agent at Kansas City
11thorizing the issuance to Denver U. S. Bancorporation,
inc.) Denver, Colorado, of a general voting permit covert its stock of Denver United States National Bank,
river, Colorado.
3
7
Air conditioning system for Seattle Branch Otem No. 4).
There
had been circulated a memorandum from the Division of Bank Operations
dated September 11, 1964, to which was attached a draft telegram to the
Pederal Reserve Bank of San Francisco (1) interposing no objection to a
131.°Posed contract for installation of an air conditioning system in the
Seattle Branch building and (2) authorizing certain expenditures for the
Project.
At the Board's invitation, Mr. Daniels briefly summarized the
"tance of the memorandum, commenting that while all bids received on
the job were substantially higher than the $390,000 figure approved by
the Board on March 28, 1963, this was due to the fact that the engineering
estimates upon which the Board's authorization had been based were incomlete.
When notified of the defective estimate the Reserve Bank had
Ileviewed the specifications and concluded that certain features could
See also page 8 of minutes.
9/18/64
either be eliminated or deferred, and the consulting engineers had expressed
the opinion that to do so would not noticeably impair the quality or pertormance of the system.
Mr. Daniels reported that the low bidder on the
contract had agreed to a figure of
$400,000 for the job under the proposed
revised specifications which, together with the customary allowance for
fees and contingencies, would result in a total maximum cost of
$468,500.
Governor Robertson stated that while there was no question about
the
need for the proposed installation, he was concerned by the fact that
if the eliminations contemplated were not essential they should not have
been included in the specifications in the first place, and, on the other
hand) that if they were essential the Reserve Bank would find it necessary
to submit a subsequent request to the Board for authorization to spend an
4dditional sum to complete the project.
Governor Shepardson observed that this aspect of the matter had
41s° concerned him, because it was his impression from reading President
Sw'all's letter of September
4, 1964, explaining the situation that the
tell% to be removed from the specifications were merely to be deferred
a later date rather than eliminated entirely.
Chairman Martin commented that the point raised by Governors
Ilebertson and Shepardson was well taken
and suggested that, in con-
nection with authorizing the requested expenditure, it would be desirable
r°11 Governor Robertson to explore the matter further with President Swan
° 4scertain whether it would be desirable and most efficient to proceed
3182
9/18/64
-5-
'ith the installation as originally contemplated, rather than to omit
01* defer certain items.
Transmittal of the telegram to President Swan was then approved
Unanimously, with the understanding that Governor Robertson would
eemmunicate to Mr. Swan the Board's willingness to have the Bank proceed
/fith the more complete installation if the directors of the Bank felt
that such action was desirable.
Secretary's Note: Following the
meeting, Governor Robertson called
President Swan who indicated that
he would review the matter again and,
in the event the more complete installation seemed desirable at this
time, communicate further with the
Board. Accordingly, the telegram
was transmitted; a copy is attached
to these minutes as Item No. 4.
Investment by Continental International Finance Corporation
(Item
There had been distributed a memorandum from the Division
f*aminations dated August 21, 1964, together with a proposed letter
to Continental International Finance Corporation (a section 25(a)
c°1130ration), Chicago, Illinois, regarding that company's request for
1)ellaission to purchase approximately 10 per cent of the shares of
Necie ,
1%Landse Overzee Bank N.V., Amsterdam, Holland.
Mr. Goodman reviewed the substance of the memorandum, commenting
that the only
aspect of the request that raised other than a routine issue
the desire of applicant to retain a representative office which the
l'c)rei-13/1 bank currently had, in the form of a wholly-awned subsidiary
c)1113oration, in New York City.
3183
9/18/64
-6Mr. Goodman noted that there was a difference of opinion between
the Dtvision of Examinations and the Legal Division regarding the propriety
or
allowing the Edge corporation to invest in the foreign bank without
requiring dissolution of the bank's interest in the United States corporaIn this connection, he noted that in the past when similar situations
had been presented, such as the case of Morgan Guaranty International Bank1116 Corporation's acquisition of an interest in a Dutch bank holding company,
the Board had conditioned approval of the transaction upon divestment or
dissolution of the foreign corporation's investment in this country.
The
tegsa Division, however, was of the view that neither section 25(a) of
the Federal Reserve Act nor Regulation K (Corporations Engaged in Foreign
ilarlking and Financing under the Federal Reserve Act) required that such
4 condition be imposed.
Messrs. Goodman and Shay then commented briefly upon the considerunderlying the views of the Division of Examinations and the Legal
3311ri8ion, respectively.
Each observed that in the final analysis the
188ue presented was whether in cases such as this, when an Edge corporation
Pr(Vosed to acquire a minority interest in a foreign financial institution,
the l'equirement that such institution sever its relationship with a repoffice in the United States would be an unduly harsh condition
aPProval.
In this connection, Mr. Shay stressed the inequity of such
reluirement, noting that its imposition constituted a more stringent
a-lon upon the operation and activities of the foreign institution
3184
-7-
9/18/64
than upon the investing Edge corporation itself.
He suggested that a
better regulatory philosophy might be to allow foreign financial institUtions, or subsidiaries or affiliates thereof, in which Edge corporations
hold minority interests to do business in the United States of the same
nature, and to the same extent, as the Edge corporations themselves are
allowed to do.
Mr. Solomon expressed concurrence in the logic of this
-tstestion.
issue
Governor Robertson stated that while he did not feel the
he
before the Board was particularly significant as a matter of policy,
strongly inclined to the feeling that all cases wherein the same
situation existed should be treated uniformly.
In this connection, he
referred to the fact that in the Morgan Guaranty International Banking
Cc)rPoration case the Board had conditioned its consent to the proposed
investment upon dissolution of a New York affiliate of the foreign
institution involved.
On the other hand, he indicated a disposition
to favor a more liberal approach if it were to be applied across the
board.
the
There followed a discussion of the feasibility of modifying
1)roh1b1ti0n contained in outstanding consents against conduct of business
y
ill the United States by a foreign financial institution, or a subsidiar
°r affiliate thereof, in a manner that would allow the former, when an
°I•ge corporation holds a minority interest therein, to engage in any
4et1vity in the United States that Edge corporations may engage in.
l'as agreed that this would present no problems.
'
It
318,3
-8-
9/18/64
Accordingly, the requested consent for the purchase of shares
Of Nederlandse Crverzee Bank N.V. by Continental International Finance
Corporation was approved unanimously, incorporating the proposed liberalized limitation on business activity in the United States by the bank,
48 follows:
"The Board's consent to the proposed purchase and holding
of shares of NOB by CIFC is granted subject to the condition
that neither NOB nor any subsidiary bank or other affiliated
company shall engage in the business of underwriting, selling,
or distributing securities in the United States, or in any
Other activity in the United States not permissible for a
Corporation organized under section 25(a) of the Federal
Reserve Act engaged in banking."
A Copy of the letter of notification to the applicant is attached to
these minutes as Item No.
5.
It was further understood that the Board would proceed promptly
to advise other corporations holding previously-granted consents for
naillority investments in foreign financial institutions that such consents
haa been
revised to incorporate a clause, identical in substance to the
b°ve-quoted condition, permitting such institutions or subsidiaries or
liates thereof to conduct the specified type of business activity
ill the United States.
Copies of the letters transmitted in accordance
lith this understanding are attached to these minutes as Items 6-15.
Secretary's Note: The above permissive
condition was incorporated in the consent
granted Wells Fargo Bank International
Corporation for purchase of shares in
ADELA Investment Company, S.A., Luxembourg
(attached to these minutes as Item No. 2),
which was considered and approved with this
revision immediately following the foregoing
agenda topic.
/4 ‘,2(:
,../JL.4.-A,
9/18/64
_9..
Messrs. Young, O'Connell, Sammons, Goodman, Poundstone, Lyon,
and Forrestal then withdrew from the meeting.
Report on competitive factors (Moundsville, West Virginia).
There had been distributed a memorandum from the Division of Exmminations
dated September 11, 1964, submitting for Board consideration a draft of
rePort to the Comptroller of the Currency on the competitive factors
involved in the proposed merger of Marshall County Bank, Moundsville,
West Virginia, into The First National Bank at Moundsville, Moundsville,
West Virginia.
In discussion, Governor Balderston observed that the memorandum
e011-cerning the merger received from the Federal Reserve Bank of Richmond
e'PPeared to be favorable to the proposal, whereas the suggested conclusion
111 the Board's report to the Comptroller of the Currency on the competitive
a8Pect6 was quite negative in tone.
He questioned whether the conclusion
shotad not be moderated.
Governor Shepardson expressed the same reservation about the
impression conveyed by the suggested conclusion, observing that while
the merger
would have the effect of reducing alternative banking sources
ttc4athree banks to two, it would appear that competition between the
reillaining institutions in fact would be improved by consummation of the
Dr°Posaa.
During the course of further discussion, Governor Robertson
ex13
ressed the view that there was not sufficient information before the
,s1
1;
.1_
-10-
9/18/64
to warrant adopting the Reserve Bank's view that the merger would
not have adverse competitive effects, pointing out there was evidence
°f active competition between the three existing institutions at the
present time.
There developed a consensus that while the merger would make
the two remaining institutions more nearly comparable in size with
some probable increase in competition, the reduction of alternative
banking sources from three to two and elimination of some active corncurrently existing among the three institutions was an offsetting factor, the net result being a slightly adverse effect on the
sisting competitive situation.
The report was then approved unanimously for transmittal to
the Comptroller of the Currency, with a revision in the conclusion to
l'eltd- as follows:
A merger of Marshall County Bank and The
First National Bank at Moundsville would eliminate
the competition between them and reduce the local
alternate banking facilities from three to two.
The overall effect of the proposed merger on competition would be slightly adverse.
Liaison with new ad hoc subcommittee of Conference of Presidents.
Mr,,
4exter reported that he had received a telephone call from President
l.s of
the Federal Reserve Bank of Boston the previous day, wherein
D„
advised that the Conference of Presidents had designated an
hOe subcommittee of the Committee on Bank Supervision to study the
144/ 4oations of new methods being resorted to by banks to tap sources
3188
-11-
9/18/64
Of loanable funds outside the purview of transactions subject to the
Board's Regulation Q (Payment of Interest on Deposits).
Mr. Ellis had
inquired whether in view of Mr. Hexter's familiarity with financial
Matters he would be willing to serve as liaison between the subcommittee
and the Board.
Mt. Hexter said that, because of vacation plan4 he would be
Unable to accept, but he had suggested several alternative possibilities
alll°ng members of the Board's staff.
Following brief discussion, it was agreed that Mr. Solomon,
131rector of the Division of Examinations, would serve as the Board's
l
son with the subcommittee, with the understanding that Mx. Hexter
14341d so advise President Ellis.
The meeting then adjourned.
Secretary's Notes: A letter was sent to
First National City Bank, New York, New
York, on September 17, 1964, acknowledging
receipt of notice of its intent to establish
an additional branch in Peru, to be located
in Callao.
Pursuant to the action of the Board on
August 3, 1964, concerning the conversion
of Wells Fargo Bank International Corporation, San Francisco, California, into a
corporation organized under section 25(a)
of the Federal Reserve Act, there was sent
today to the Federal Reserve Bank of San
Francisco the letter of which a copy is
attached as Item No. 16.
Governor Shepardson approved on behalf of
the Board on September 17, 1964, a memorandum
from the Division of Administrative Services
L..ik I
lit,
9/18/64
-12recommending acceptance of the resignation of
William B. Stryker, Photographer (Offset) in
that Division, effective at the close of
business September 18, 1964.
Governor Shepardson today approved on
behalf of the Board the following items:
Fetter to the Securities and Exchange Commission (attached Item
1)
7
requesting the detail to the Board on a reimbursable basis of
Thomas Sidman, Financial Accountant, Division of Corporate Finance,
period of three months beginning September 21, 1964, to provide
ssistance in connection with the Board's responsibilities under the
:
fl!cert amendment to the Securities Exchange Act of 1934. (The question
obtaining such assistance was discussed at the Board meeting on
XO.
46111St
13, 1964.)
Memoranda recommending the following actions relating to the
staff:
-ardis
R'eestablishment of position
Position of Secretary (FR-6, Administration) in the Division of
Research and Statistics.
Acce tance of resignation
Colleen M. Lindsay, Clerk-Stenographer, Division of Bank Operations,
''I-ective at the close of business October 2, 1964.
31S0
BOARD OF GOVERNORS
Item No. I
9/18/64
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, O. C. 20551
ADDRESS
orriciAL
CORPICIIPONOCNOC
TO THIC SOAR!)
September 18, 1964.
International Banking Corporation,
399 Park Avenue,
New York 22, New York.
Gentlemen:
In accordance with the request contained in
Your letter of August 27, 1964, transmitted through the
Federal Reserve Bank of New York, and on the basis of
information furnished, the Board of Governors grants
consent for your Corporation to purchase and hold additional capital stock of The First National City Bank of
New York (South Africa) Limited in the amount of South
African Rands 200,000 (approximately US$280,000 equivalent).
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
Item No. 2
BOARD OF GOVERNORS
9/1.8/64
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, O. C. 20551
ADDRESS
orriciAL
CORRESPONDENCE
TO THE 1110ARD
September 21, 1964.
Wells Fargo Bank International Corporation,
464 California Street,
San Francisco, California.
Gentleme
n:
In accordance with the request contained in your letter
°f September 15, 1964, transmitted through the Federal Reserve Bank
,f San Francisco, and on the basis of information furnished, the
()
rard of Governors grants consent for your Corporation to purchase
€A111)(1
up to 50 ordinary shares, par value US$10,000 each, of
uj,LA Investment Company, S.A., Luxembourg, at a cost of approximately
1 9500,000, provided such stock is acquired within one year from the
ilte of this letter.
of
se
The Board also approves the purchase and holding of shares
..,,LLA Investment Company, S.A. within the terms of the above cont in excess of 10 per cent of your Corporation's capital and surplus.
Arm, -
The Board's consent to the proposed purchase and holding
h
°E
s arcs of ADELA by your Corporation is granted subject to the
!
co,
4fuition that neither ADELA nor any subsidiary thereof or other
24iliated company shall engage in the business of underwriting,
()ti ling, or distributing securities in the United States, or in any
0121er activity in the United States not permissible for a Corporation
allized under Section 25(a) of the Federal Reserve Act.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
TELEGRAM
Item No.
LEASED WIRE SERVICE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
3
9/18/64
September 18, 1964.
SCOTT -- KANSAS CITY
KELM
A.
Denver U. S. Bancorporation, Inc., Denver, Colorado.
B.
Denver United States National Bank, Denver, Colorado.
C.
Prior to issuance of permit authorized herein, Applicant
shall execute and deliver to you in duplicate an agreement
in form accompanying Board's letter 5-964 (F.R.L.S. #7190).
STOP. Issuance of the permit authorized herein is without
regard to, and not conditioned upon, settlement of the
pending question concerning the possible violation of
Section 6(a)(2) of the Bank Holding Company Act of 1956.
Applicant should be so advised.
(Signed) Karl E. Bakke
BAKKE
bert
**-,
- 21111.9n of KEBJE
The la
uoard authorizes the issuance of a general voting permit, under
the provisions of section 5144 of the Revised Statutes of the
United States, to the holding company affiliate named below
after the letter "All, entitling such organization to vote the
4t00k which it owns or controls of the bank(s) named below
after the letter HEW at all meetings of shareholders of such
bank(s)„ subject to the condition(s) stated below after the
letter 0C". The period within which a permit may be issued
Pursuant to this authorization is limited to thirty days from
the date of this telegram unless an extension of time is granted
bY the Board. Please proceed in accordance with the instructions contained in the Board's letter of March 10, 1947, (5-964).
3193
TELEGRAM
Item No.
4
9/18/64
LEASED WIRE SERVICE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
September 18, 1964.
SWAN - SAN FRANCISCO
Referring your September 4 letter, Board will interpose no objection
to your Bank's entering into contract with The Ballard Company to
install air conditioning system in Seattle building and authorizes
expenditure of not to exceed $468,500 for the project.
(Signed) Merritt Sherman
SHERMAN
BOARD OF GOVERNORS
Item No.
5
9/18/64
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS
orruciAL CORRESPONDENCE
TO THE BOARD
September 21, 1964.
t
Con
n
inental International Finance Corporation,
431 South LaSalle Street,
Chicago 90, Illinois.
Ge ntlemen:
In accordance with the request contained in your letter of
1964, addressed to Vice President Leland Ross of the Federal
'f'.i• serve Bank of Chicago, and on the basis of information furnished,
Board of Governors grants consent for Continental International
;ranee Corporation ("CIFC") to purchase and hold 6,002 Ordinary
A ares, par value Guilders.500 each, of Nederlandse Overzee Bank N.V.,
t !l !terdam, Holland ("NOB"), at an approximate cost of Guilders 7,352,450
‘'6$2,058,000 equivalent), provided such shares are acquired within one
Year
from the date of this letter.
JUn
The Board's consent to the proposed purchase and holding of
--s of NOB by CIFC is granted subject to the condition that neither
•mOBr.
nor any subsidiary bank or other affiliated company shall engage
the business of underwriting, selling, or distributing securities
40 the United States, or in any other activity in the United States
cl Permissible for a Corporation organized under section 25(a) of the
pet
eral Reserve Act engaged in banking.
sha
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
BOARD OF GOVERNORS
Item No.
OF THE
6
9/18/61+
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL. CORRESPONDENCE
TO THE BOARD
September 23, 1964,
First National City Overseas
Investment Corporation,
399 Park Avenue,
New York 22, New York.
Gentlemen:
Reference is made to the Board's letter of June 5,
1964 granting consent for your Corporation to purchase and hold
11P to 50 shares of ADELA Investment Company, S.A., Luxembourg,
at a cost of approximately US$500,000, provided such stock is
acquired within one year from that date.
In acting on a recent request from another Corporation
fO1 consent to acquire shares of ADELA, the Board
has given further consideration to the condition imposed in the last paragraph
Of its letter of June 5, 1964 to your Corporation and hereby amends
such paragraph to read as follows:
"The Board's consent to the proposed purchase and holding
of shares of ADELA by your Corporation is granted subject
to the condition that neither ADELA nor any subsidiary
thereof or other affiliated company shall engage in the
business of underwriting, selling, or distributing securities in the United States, or in any other activity in the
United States not permissible for a Corporation organized
under Section 25(a) of the Federal Reserve Act."
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
BOARD OF GOVERNORS
Item No. 7
9/18/64
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS orricsm.. CORRESPONDENCE
TO THE BOARD
September 23, 1964.
Irving International Financing Corporation,
°fle Wall Street,
New York 15, New York.
Gentlemen:
Reference is made to the Board's letter of June 5,
1964 granting consent for your Corporation to purchase and hold
to 25 shares of ADELA Investment Company, S.A., Luxembourg,
41 a cost of approximately US$250,000, provided such stock is
4cquired within one year from that date.
In acting on a recent request from another Corporation
f°r consent to acquire shares of ADELA, the Board has given further consideration to the condition imposed in the last paragraph
c/f its letter of June 5, 1964 to your Corporation and hereby amends
atIch paragraph to read as follows:
"The Board's consent to the proposed purchase and holding
of shares of ADELA by your Corporation is granted subject to the condition that neither ADELA nor any subsidiary thereof or other affiliated company shall engage in
the business of underwriting, selling, or distributing
securities in the United States, or in any other activity
in the United States not permissible for a Corporation
organized under Section 25(a) of the Federal Reserve Act."
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
')A
1Y'Y
01.10.‘
BOARD OF GOVERNORS
.
:
/fsDotc,A,
:f
Item No.
8
9/18/64
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
t RESt$
•
September 23, 1964.
The Company for Investing Abroad,
Fidelity Philadelphia Trust Building,
Philadelphia 9, Pennsylvania.
Gentlemen:
Reference is made to the Board's letter of June 5,
1964 granting consent for your Corporation to purchase and hold
IT to 50 shares of ADELA Investment Company, S.A., Luxembourg,
at a cost of approximately US$500,000, provided such stock is
acquired within one year from that date.
In acting on a recent request from another Corporation
for consent to acquire shares of ADELA, the Board has given further consideration to the condition imposed in the last paragraph
Of its letter of June 5, 1964 to your Corporation and hereby amends
such paragraph to read as follows:
"The Board's consent to the proposed purchase and holding
of shares of ADELA by your Corporation is granted subject
to the condition that neither ADELA nor any subsidiary
thereof or other affiliated company shall engage in the
business of underwriting, selling, or distributing securities in the United States, or in any other activity in the
United States not permissible for a Corporation organized
under Section 25(a) of the Federal Reserve Act."
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
4
Item No.
BOARD OF GOVERNORS
9
9/18/64
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
September 23, 1964.
Continental International Finance Corporation,
231 South LaSalle Street,
Chicago 90, Illinois.
Reference is made to the Board's letter of September 15,
1964 granting consent for your Corporation to purchase and hold
up to 50 shares of ADELA Investment Company, S.A., Luxembourg, at
a cost of approximately US$500,000, provided such stock is acquired within one year from that date.
In acting on a recent request from another Corporation
for consent to acquire shares of ADELA, the Board has given further consideration to the condition imposed in the second sentence
of the third paragraph of its letter of September 15, 1964 to your
Corporation and hereby amends such sentence to read as follows:
"The Board's consent to the proposed purchase and holding
of shares of ADELA by your Corporation is granted subject to the condition that neither ADELA nor any subsidiary thereof or other affiliated company shall engage in
the business of underwriting, selling, or distributing
securities in the United States, or in any other activity
in the United States not permissible for a Corporation
organized under Section 25(a) of the Federal Reserve Act."
Very truly yours,
(Signed)
Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
3199
Item No. 10
9/18/64
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS orricsAL CORRESPONDENCE
TO THE BOARD
September 23, 1964.
Manufacturers-Detroit International Corporation,
c/0 Mr. William A. Mayberry, Chairman of the Board,
Manufacturers National Bank of Detroit,
151 West Fort Street,
Detroit, Michigan 48226.
G
entlemen:
Reference is made to the Board's letter of June 19,
1964 granting consent for your Corporation to purchase and hold
uP to 25 shares of ADELA Investment Company, S.A., Luxembourg,
at a cost of approximately US$250,000, provided such stock is
acquired within one year from that date.
In acting on a recent request from another Corporation
consent to acquire shares of ADELA, the Board has given further consideration to the condition imposed in the last paragraph
°f its letter of June 19, 1964 to your Corporation and hereby
amends such paragrph to read as follows:
for
"The Board's consent to the proposed purchase and holding
of shares of ADELA by your Corporation is granted subject to the condition that neither ADELA nor any subsidiary thereof or other affiliated company shall engage in
the business of underwriting, selling, or distributing
securities in the United States, or in any other activity
in the United States not permissible for a Corporation
organized under Section 25(a) of the Federal Reserve Act."
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
BOARD OF GOVERNORS
Item No. 11
9/18/6)4.
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
/s116.0.-••
..••••
September 23, 1964.
Morgan Guaranty International
Banking Corporation,
23 Wall Street,
New York 8, New York.
Ge ntleme n:
Reference is made to the Board's letter of January 16,
1963 granting consent for your Corporation to purchase and hold
00 ordinary shares of Bankierscompagnie, N.V. ("Company"), The
;:484e, The Netherlands, at a cost of approximately US$1,400,000
t°vided such stock was acquired within one year from that date.
'
The Board has recently acted on a request from another
t !ction 25(a) Corporation to acquire shares in a foreign bank where
S.
sue activities and relationships concerning the foreign bank were
'
c lewhat similar to those existing in the case of Company. The
"
dition prescribed in the recent consent was less restrictive
1 those contained in the Board's letter of January 16, 1963
add
to your Corporation. Accordingly, paragraphs two and
arur of the Board's letter of January 16, 1963 to your Corporation
e hereby rescinded and, in lieu thereof, the following condition
Z
a,,,T
'11
Prescribed:
The Board's consent to the proposed purchase and
holding of shares of Company by MGIBC is granted subject
to the condition that neither Company nor any subsidiary
bank or other affiliated company shall engage in the
business of underwriting, selling, or distributing securities in the United States, or in any other activity in the
United States not permissible for a Corporation organized
under Section 25(a) of the Federal Reserve Act engaged in
banking.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
e
t5K;C,
BOARD OF GOVERNORS
Item No. 12
OF THE
9/18/64
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
September 28, 1964.
Bankers International Corporation,
!
80 Park Avenue,
"ew York 17, New York.
Gentlemen:
Reference is made to the Board's letter of September 3,
1961
consent for your Corporation ("BIG") to purchase and
D
hoid granting
-14),239 shares of l'Union des Mines-La Henin (flUdMLH"), Paris,
nce, at a cost of approximately US$1,861,000 (equivalent), proui
!
d such stock was acquired within one year from that date.
The Board has recently acted on a request from another
aecti
+1, on 25(a) Corporation to acquire shares in a foreign bank where
6 condition prescribed was less restrictive than those contained
6
4[0
, 1 the Board's letter of September 3, 1963, addressed to your
12Poration. Accordingly, Condition (2) in paragraph five of the
:
uard i s letter of September 3, 1963 to your Corporation is hereby
'
eeoinded and, in lieu thereof, the following condition is prescribed:
The Board's consent to the proposed purchase and
holding of shares of UdMLH by BIG is granted subject to
the condition that neither UdMLH nor any subsidiary bank
or other affiliated company shall engage in the business
Of underwriting, selling, or distributing securities in
the United States, or in any other activity in the United
States not permissible for a Corporation organized under
Section 25(a) of the Federal Reserve Act engaged in
banking.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
2(if2
BOARD OF GOVERNORS
Item No. 13
OF THE
FEDERAL RESERVE SYSTEM
9/18/64
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
September 29, 1964.
International Banking Corporation,
399 Park Avenue,
New York 22, New York.
Gentlemen:
Reference is made to the Board's letter of January 30,
1963, granting consent for your Corporation ("IBC") to purchase
and hold 600,000 shares of M. Samuel & Co. Limited ("MSCL"),
London, England, for the equivalent of approximately 151,900,000,
Provided such shares were acquired within one year from that date.
The Board has recently acted on a request from another
Corporation to acquire shares in a foreign bank where the condition
prescribed was less restrictive than those contained in the Board's
letter of January 30, 1963, addressed to your Corporation. Accordingly, paragraphs two and three of the Board's letter of January 30,
1963, to your Corporation are hereby rescinded and, in lieu thereof,
the following condition is prescribed:
The Board's consent to the proposed purchase and
holding of shares of MSCL by IBC is granted subject to
the condition that neither MSCL nor any subsidiary bank
or other affiliated company shall engage in the business of underwriting, selling, or distributing securities
in the United States, or in any other activity in the
United States not permissible for a Corporation organized
under Section 25(a) of the Federal Reserve Act engaged
in banking.
Reference is also made to the Board's letter of July 23,
1964, as amended by the Board's letter of September 4, 1964, granting
consent for your Corporation to purchase and hold 160,000 shares of
the capital stock of the proposed new Banque de l'Afrique Occidentale
(I MO"), Paris, France, at a cost of approximately US$3,200,000, provided such stock was acquired within one year from July 23, 1964.
4011r.trlo,
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
-2-
International Banking Corporation
For the reasons indicated above, paragraph three of the
Board's letter of July 23, 1964, and Conditions (1) and (2) in paragraph three of the Board's letter of September 4, 1964, are hereby
rescinded and, in lieu thereof, the following condition is prescribed:
The Board's consent to the proposed purchase and
holding of shares of BAO by IBC is granted subject to
the condition that neither BAO nor any subsidiary bank
or other affiliated company shall engage in the business
of underwriting, selling, or distributing securities in
the United States, or in any other activity in the United
States not permissible for a Corporation organized under
Section 25(a) of the Federal Reserve Act engaged in
banking.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
Item No.
BOARD OF GOVERNORS
114-
9/18/611.
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONOENCE
TO THE BOARD
September 29, 1964.
Morgan Guaranty International
Finance Corporation,
23 Wall Street,
New York 8, New York.
Gentlemen:
Reference is made to the Board's letter of January 31,
1963, granting consent for your Corporation to acquire and hold
187,793 shares, par value Australian Shillings 10 each, of Australian
United Corporation Limited ("AWL"), Melbourne, Australia, provided
such stock was acquired within one year from that date.
The Board has recently acted on a request from another
Corporation to acquire shares in a foreign corporation where the
condition prescribed was less restrictive than those contained in
the Board's above-mentioned letter of January 31, 1963, addressed
to your Corporation. Accordingly, paragraphs two and three of that
letter are hereby rescinded and, in lieu thereof, the following
condition is prescribed:
The Board's consent to the proposed purchase and
holding of shares of AUCL by your Corporation is granted
subject to the condition that neither AUCL nor any subsidiary thereof or other affiliated company shall engage
in the business of underwriting, selling, or distributing
securities in the United Stares, or in any other activity
in the United States not permissible for a Corporation
organized under Section 25(a) of the Federal Reserve Act.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 15
9/18/64
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
September 29, 1964.
Morgan Guaranty International
Finance Corporation,
23 Wall Street,
New York 8, New York.
Gentlemen:
Reference is made to the Board's letter of January 31,
1963, granting consent for your Corporation to purchase and hold
uP to 21,000 shares of the capital stock of Euramerica Finanziaria
In ternazionale, S.p.A.("EFI"), Rome, Italy, at a cost of approximately US$170,000, provided such stock was acquired within one
Year from that date.
The Board has recently acted on a request from another
Corporation to acquire shares in a foreign corporation where the
condition prescribed was less restrictive than those contained in
the Board's above-mentioned letter of January 31, 1963, addressed
Your Corporation. Accordingly, paragraphs two and three of that
(3
etter are hereby rescinded and, in lieu thereof, the following
condition is prescribed:
The Board's consent to the proposed purchase and
holding of shares of EFI by your Corporation is granted
subject to the condition that neither EFI nor any subsidiary thereof or other affiliated company shall engage
in the business of underwriting, selling, or distributing
securities in the United States, or in any other activity
in the United States not permissible for a Corporation
organized under Section 25(a) of the Federal Reserve Act.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
BOARD OF GOVERNORS
Item No. 16
9/18/6k
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
September 18, 1964.
Z
1 .
4 E. H. Galvin, Vice President,
8 eral Reserve Bank of San Francisco,
'4 Francisco, California.
94120
ileat
Mr. Galvin:
Enclosed you will find (1) a draft of the substantive
Porti
14r, --na of a certificate with respect to the directors, stock
'
c
e /;,Trship and paid-in capital of Wells Fargo Bank International
t
e:P°ration;
(2) a permit for Wells Fargo Bank International
Ooration, a California corporation, to convert into Wells
III
?Bank International Corporation, a Corporation organized
amer the provisions of section 25(a) of the Federal Reserve Act,
Or the latter to commence business, and (3) a letter addressed
to
lla Fargo Bank International Corporation transmitting the
t to the Corporation.
It is understood that Wells Fargo Bank International
Corp()
lilt., ration, a California corporation, and Wells Fargo Bank
No7national Corporation contemplate delivering to you on
in tf!Tber 30, 1964, a certificate as in the draft referred to
or ‘4) above, the certificate to be certified by the president
at ecretary of Wells Fargo Bank International Corporation and by
4 east three additional directors of that Corporation. It will
se,"Preciated if, upon your receipt of this certificate on
tember 30, 1964, you will thereupon deliver to Wells Fargo Bank
in Illational Corporation the enclosed permit and letter described
(2) and (3) above, and advise us accordingly.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
Cl°8Urea
BOARD OF GOVERNORS
Item No. 17
9/18/64
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
September 18, 1964.
1104
p
(=Table Manuel F. Cohen,
4144111cm,
wSecutities and Exchange Commission,
4811in8ton, D. C. 20549.
1)ear Mt. Cohen:
This refers to the informal telephone discussion that has taken
Pl6ce between Chairman Martin and yourself and subsequent conversations beten
.E. J. Johnson of the Board and Mr. Fontes of the Commission relatsecure) the detail on a reimbursable basis to the Board of Governors from the
ities and Exchange Commission of Mr. Thomas Sidman, Financial Accountant,
14.11;
.4.04
v.Lon
of Corporate Finance.
It is our understanding that the Commission is agreeable to the
qg st6 of Mr. Sidman's services to the Board for the purpose of assisting
4rit eff in connection with the Board's new responsibilities under the ream
endment to the Securities Exchange Act of 1934.
1
We anticipate that Mr. Sidman's services will be needed for a
Period
1964. of three months, beginning September 21, 1964 and ending December 21,
1101,7" It is possible that we may need to request an extension of this time.
requeer, we cannot accurately make this determination at the present time and
k4ird8t, therefore, that the matter of extending Mr. Sidman's detail to the
beYond a three-month period be left open for future consideration until
lie had the opportunity to judge the progress of this project.
It is understood that the Board will reimburse the Commission for
an's salary in addition to reimbursing Mr. Sidman directly for any
II
expense incurred by him during the period of his detail to the Board.
EINIE 5fd will also forward to the Office of the Controller of the Securities
-c"ahge Commission a bi-weekly time and attendance report for Mr. Sidman.
'
8 i
If the above arrangement is agreeable, we would appreciate the
on
approval of the requested detail.
Very truly yours,
(Signed)
Merritt Sherman
Merritt Sherman,
Secretary.
@FedFRASER