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Minutes for To: Members of the Board From: Office of the Secretary September 20, 1961 Attached is a copy of the minutes of the Board of Governors of the Federal Reserve System on the above date. It is not proposed to include a statement With respect to any of the entries in this set of minutes in the record of policy actions required to be maintained pursuant to section 10 of the Federal Reserve Act. Should you have any question with regard to the minutes, it will be appreciated if you will advise the Secretary's Office. Otherwise, please initial 1?elow. _ If you were present at the meeting, your Initials will indicate approval of the minutes. If You were not present, your initials will indicate (11115r that you have seen the minutes. Chm. Martin Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. King Gov. Mitchell $ 140-Irk 0 Minutes of the Board of Governors of the Federal Reserve System on WednesdaY, September 20, 1961. PRESENT: Mr. Mr. Mr. Mr. The Board met in the Board Room at 10:00 a.m. Robertson, Acting Chairman Shepardson King Mitchell Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Discount rates. Sherman, Secretary Fauver, Assistant to the Board Hackley, General Counsel Noyes, Director, Division of Research and Statistics Harris, Coordinator of Defense Planning Hooff, Assistant General Counsel Conkling, Assistant Director, Division of Bank Operations Daniels, Assistant Director, Division of Bank Operations Benner, Assistant Director, Division of Examinations Leavitt, Assistant Director, Division of Examinations Spencer, General Assistant, Office of the Secretary Collier, Chief, Current Series Section, Division of Bank Operations The establishment without change by the Federal 11443erve Bank of Boston on August 18, 1961, of the rates on discounts and El4illarices in its existing schedule was approved unanimously, with the standing that appropriate advice would be sent to that Bank. ' Illtiel Items circulated or distributed to the Board. The following items, Vhich had been circulated or distributed to the members of the Board and %Pi a e- of which are attached to these minutes under the respective item X.8 indicated, were approved unanimously: Item No. 41.iter+ 1144 - 'Jo the Federal Reserve Bank of Atlanta regardOrlea'4 inquiry from National American Bank of New D1,84.16) New Orleans, Louisiana, as to the status of ot 2DO8a1 to amend the common trust fund provisions • "%la.lation F. 1 9/2o/61 -2Item No. .4et'Aer to The National Bank of Commerce, New Orleans, 14111siana, regarding reported absorption of exchange °I1xIonpar items. 2 rietter to The First National Bank of Tuscola, Tuscola, 1111101 Powers.8' disapproving its application for full fiduciary 3 letter to the Federal Reserve Bank of Minneapolis horizing building alterations to provide a fallt shelter kri, s_ and stand-by- power for essential operations "L4g any interruption of regular power service, at an estimated cost of $110,000. 4 1,etter to the Comptroller of the Currency recommending tzavorably vith respect to an application to organize a atiL0ael bank at Zapata, Texas. 5 lett to Depositors Trust Company, Augusta, Maine, pb,e=ving the establishment of a branch in the -4440111 Plaza Shopping Center, Rockland. 6 Z Z Letter . 4 con,, - 0 The First Pennsylvania Banking and Trust esivtlalY, Philadelphia, Pennsylvania, approving the ishment of a branch at 255 East County Line BkIcks County. tette r to Old Kent Bank and Trust Company, Grand Et , Michigan, approving the establishment of l‘e'llch at 807 Eastern Avenue, S. E. Lette eezi r to United California Bank) Los Angeles) brnia, approving the establishment of a -men in Downey. tte errzwi; to the Bureau of the Budget reporting on T1W4-Led bill S. 902,"to amend the SmAll Business estment Act of 1958, and for other purposes." 7 8 9 10 Messrs. Harris, Daniels, and Benner then withdrew from the meeting. With respect to Item No. 2) Governor Robertson suggested that, in tie Pation of a subsequent meeting with the Comptroller of the Currency 2 9/20/61 -3- andthe Chairman of the Federal Deposit Insurance Corporation regarding the absorption of exchange, the Board schedule a meeting at which it /rauld review the entire nonpar problem with a view to developing the Position it might wish to take in a joint meeting with the other superagencies. There was agreement with the desirability of this Pl'ocedure, and it was understood that the topic would be placed on the 4encla for consideration at a meeting of the Board during the week be ginnlng October 23, 1961. Prior to approval of Item No. 3, a letter to The First National 11941k of Tuscola disapproving its application for fiduciary powers, Mr. 13eArier responded to requests to review the factors that led to the ree°132Mendation that the application be disapproved, as well as to 11"ions regarding actions that might be taken to correct the unsatis1 condition of the affiliated State member bank, which had been 11 taet°' eEtrIled as a problem bank for several years. Revisions in Form F. R. 573. There had been circulated a memorandum tx.(141 the Division of Bank Operations dated September 12, 1961, regarding P(11132 R. 573, used in collecting debits to demand deposit accounts of 11441-dua15, partnerships, and corporations, States and political sub64\181M1s, mutual savings bnnks, and foreign banks. As stated in the Illeill°1 521dum, incident to revisions made in the reports of condition (teeeribed in the Board's letter of March 16, 1961, the monthly bank debits torm /Ms revised as of June 1961 to include debits against deposits due to savings banks and foreign banks. Inclusion of these accounts had been 324KA 9/20/61 -4- recammended in order to mske the bank debits series consistent with the dqosits component of the money supply series. Subsequently, analysis or June and July data on the new basis indicated that large month-to41°11th fluctuations in the revised series, as well as lack of comparability 141th data for earlier periods, impaired their usefulness for some purposes. cause it did not seem feasible to estimate back data for year-ago cornOr to require bsmks to report on both bases for a year, and also bee 448e of doubts as to whether debits figures on the revised basis If°111c1 actually be more useful than on the old basis, the Division of 841* Operations was recommnnding a reversal of the decision earlier this Year to include debits against deposits due to mutual savings banks sild foreign banks. Copies of proposed letters to that effect to the ll'ederal Reserve Banks and Bureau of the Budget had been circulated to the Board. Mr. Conkling stated that, in retrospect, it appeared the earlier l'ecc4nnlendation to include in the bank debits series the debits against d1*414t accounts of mutusl savings and foreign banks was too hasty. It 1146 known at the time that the inclusion of such debits would affect the data for New York City and a few other large centers, but it had not been 413111'ciPated that it would have so much effect on so large a number of clltera as was now evident. It was now apparent that inclusion of debits 6'8414st deposits due to mutual savings banks and foreign banks, which 9/20/61 -5- ha7a a rapid turnover, caused a rise in turnover rates to the extent that comparisons with back data would be difficult and probably meaningless. Also, inclusion of such debits changed the nature and usefulness or the Published series for some cities. The problem had been discussed 141th the Division of Research and Statistics, and the conclusion had been reacted that the debits series should revert to the old basis in effect 1)11°r to the June 1961 revision, even though this would cause some ellabarrassment to the Federal Reserve. Governor Mitchell said that he felt reversal of the Board's " -ter action would be so embarrassing that he doubted the wisdom of that course. From the standpoint of the Board's relations with the ezlell'Ire Banks and reporting banks, such a move would make it appear that the 130ard had not known what it was doing when it requested the inclusion r clabits to accounts of mutimi savings banks and foreign banks. On the 411t8 of the question, Governor Mitchell's feeling was that there was El:13°1th as much to be said for the revised basis of reporting as for the 01c1* Inclusion of debits to accounts of mutual savings and foreign banks those figures consistent with the deposits used in computing turnrates, and in this case there was something to be said for consistency. With l'esPect to the use of debits as indicators of local business activity, flor Mitchell said that the addition of mutual savings and foreign beLialt 8 'would make no difference for most cities since banks did not hold accounts in most parts of the country. For these reasons he found '4eS 04e4i;e4.0t..: 9/20/61 -6- it difficult to come to a conclusion that, on the merits, the old. proclklure VAS better than the new; therefore, since from the standpoint of the Board's relations with the Reserve Banks and the reporting banks a l'eli"sal would reflect unnecessarily on the Board, he would continue IfIttithe revised series. During the ensuing discussion, Governor Shepardson inquired of 1411'. eClikling which would be the better series if one could start with cleat Sheet of paper, and Mr. Conkling responded that this would 411644 on the purpose of the data. He agreed with Governor Mitchell that there were at least two purposes: many persons used individual °ItYtigures as one of the few indicators of local business conditions th"as promptly available, and for those users it would be desirable to Q4I:t all debits that reflected purely financial transactions, as did 4.14.ts to accounts of mutual savings and foreign banks. There were, of c°4113e) Other debits of that kind that had not been gotten out of the 111114*8. If the purpose of the figures was for national analysis of 4111"11 the money supply, such as the use made by members of the Board's litkr•t, it probably would, be better to have the figures on the revised beats. Mr. Noyes said that he also thought the revised series preferable tor 44tional analysis of the money supply use, but he would not want to the impression that this made the case black or white. It was to sound more dogmatic on the relative merits of the two series 9/20/61 -7- than vas warranted by the actual practical differences. that, While he felt for the purposes of the Board's work, the decision to include Qil dts to mutual savings and foreign bank accounts had been correct, the improvement was minor and technical; and the change did affect the usefulness of individual city figures as indicators of local business transactions. Governor Shapardson then said that whenever any series was overto make it better, it was likely to cause some inconvenience to 8°131ausers and to cause a lack of comparability with old data for a 13e110(1 of time. 111/131‘c'vements. However, that was not an argument for not making The Government statistical program was constantly IT°Iting to make available data more comprehensive, accurate, and use1\11) and if the revision in debits agreed upon earlier this year was ele lY a step in that direction for the purposes of monetary analysis, hia disposition would be to go forward with the revised series. Governor King inquired whether, even though some extra work was "41E/ed, for reporting banks, the best procedure would be to ask that they l'ePort on both the old and the new basis until there was a year's overlap 14 the data. Mr. Conkling responded that the Board's request for a change in l'e150Iting procedure was made for June, that he had asked the Reserve B to have reports submitted on both bases for July and August, that 9/20/61 -8- the forms called for reports only on the new basis, and that he did not kr417 to what extent the Reserve Banks activaly were receiving the data ollboth bases. Governor Robertson suggested during further discussion of the Illestion that Mr. Noyes be requested to obtain the views of the System Research Advisory Committee on the relative merits of the alternative l'ell°1ting procedures and on the extent to which embarrassment would be eallsed for the System if it should revert to the former basis for rell°rting. There was agreement with this suggestion, and it was 8-00d that the matter would be taken up again in the light of Mr. 11QYast report. Messrs. Noyes, Conkling, and Collier withdrew from the meeting Ett this point. ftort on competitive factors (Vigber, Nebraska). A draft of l'eP°rt to the Federal Eeposit Insurance Corporation on the competitive rzletOrs involved in the proposed purchase of assets and assumption of 114bl-1i-ties of Wilber State Rank by Saline State Bank, both of Wilber, lisbrasu_ 1544, had been distributed with a memorandum from the Division of Iltex kialations dated September 13, 1961. In discussion of the conclusion to the report, agreement was e)1)ressed with a suggestion it indicate that although there would be lease-, "lng of competition, in view of the population of the area to be It..)•‘4,430 9/20/61 -9- 1ced, alternative sources of banking service would be consistent Ifith the service needs of the community. The report was then approved unanimously for transmittal to the Cor poration. The conclusion in the report, as transmitted, read as follows: The proposed purchase of assets and assumption of liabilities of Wilber State Bank by Saline State Bank would eliminate competition as the two banks offer virtually identical services in the same trade area. Although the resulting bank would be about twice as large as the other bank in Wilber, there is no evidence to indicate that the ProPosed transaction would have significant adverse effects On the latter institution. Moreover, there would be alternative sources of banking services consistent with the needs of a community of this size. Xbreign travel by Mr. Noyes. Governor Shepardson referred to the &143ellssion at the meeting on September 14, 1961, and to the Board's action Board to attend a 14 6115Pr°ving the sending of a representative from the nts, g of economists to be held at the Bank for International Settleme ktele) Switzerland, on November 11-13 at which the principal topic for 114sion would be the statistical measurement of the liquidity of the " cli. 1)83144 system and the instrument by which the central bank influences 1544k liquidity. He stated that the question of Board representation at that Meeting, as well as representation from the Federal Reserve Bank of ile'4101'k) had now been cleared by Chairman Martin with Dr. Holtrqp, of the Board of Directors and President of the Bank for Inter- 111.tliellal Settlements, who had written to the Federal Reserve Bank of New 11-pf-~4-4.1 (F- 9/20/61 -10- c/I'k on September 5 regarding System representation at the meeting. As a l'esulty it was now proposed that Mr. Noyes attend the meeting as head of a StY"em delegation to consist of himself and Mr. Garvy, Adviser at the Ilecler'al Reserve Bank of New York. Governor Shepardson recommended that the Board authorize the necessary foreign travel for Mr. Noyes to attend this meeting, with the standing that he would be authorized to claim reimbursement for ' unciel e4senses on the trip on an actual expense basis if he elected to do so. Giplrernor Shepardson's recommendation was approved unanimously. The meeting then adjourned. Secretary's Note: Governor Shepardson today approved on behalf of the Board memoranda from the Division of Bank Operations and the Office of the Controller dated September 18 and 19, 1961, respectively, recommending that the Board sponsor a dinner to be given at a local hotel on October 4, 1961, for representatives of the Federal Reserve Banks attending a conference of Reserve Bank accounting officers, at an estimated cost of $350, which would provide for about 35 guests, including 20 Reserve Bank representatives, members of the Board, and designated members of the Board's staff; and that the cost of the dinner be authorized as an overexpenditure in the 1961 budget of the Division of Bank Operations. 32r,Z BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25.D.C. Item No. 1 9/20/61 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD September 20, 1961 Mr. Harold T. Patterson, First Vice President and General Counsel, Federal Reserve Bank of Atlanta, Atlanta 3, Georgia. De r Mr. Patterson: Reference is made to your letter of September 8, 1961, yith which was enclosed a copy of a letter addressed to Mr. R. M. tephenson, Assistant Vice President at your New Orleans Branch, IDY National American Bank of New Orleans which is contemplating : stablishment of a common trust fund under the provisions of ogulation F and inquires as to the status of a recent proposal Y the Board to amend the provisions of subparagraph (3) of pararaph (a) of Section 207.17--the common trust fund provisions of ,Le gulation F. Z g The proposed amendment would make ineligible for partici --pation in a common trust fund, established and maintained tiT l der the provisions of Section 207.17, the funds of an intertrust revocable by the settlor and providing for the payment the principal of the trust to the settlor's estate at his death. This amendment proposal was released to the press on NOv eMber 29, 1960, and was simultaneously published in the Federal ';,egister for the purpose of obtaining views and comments with respect r° it. This proposed change in the Regulation and the comments eceived regarding it have been the subject of comprehensive study byc the Board's staff. The subject of the proposed amendment con1118 a difficult feature of common trust fund administration. Therefore, t it is not possible to predict what final action will be 'en with respect to this matter or when action will be taken. The °Posal, however, has not been in any sense abandoned. 4 The Board agrees with your suggestion that National American i3ety,L(a ' N- of New Orleans be advised of the existing provisions of paragraph tr.', Section 207.17, Regulation F t which prohibit the use of common pollet funds as investment trusts for other than strictly fiduciary purses; it would appear desirable also to call the bank's attention to .74 `0 • BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM r. Harold T. Patterson the Board's administrative interpretations relative to the provisions of Section 17(a). It will be appreciated if you would advise National American Bank of New Orleans along these lines. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. WwfrS * o 4.01.:ek BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 2 9/20/61 ADDRESS OFFICIAL CORRESPONOENCE TO THE BOARD September 20, 1961 Mr. John Oulliber, President, The National Bank of Commerce, New Orleans 9, Louisiana. Dear Mr. Oulliber: The Board appreciates your interest in the nonpar problem as in your letter of August 25, 1961. 8et Somewhat similar reports of violation of Regulation Q led to the A_ troni-vardIs ruling of August 4, 1960. Following widespread protests the brnember banks regarding the administrative burdens of that ruling, tiov:?ard reinstated the $2.00 rule on November 8 (published in the 8a1,11s-rIluer issue of the Federal Reserve Bulletin, page 1226) and at the eZtime began a survey, in cooperation with the Office of the to ql:oller of the Currency and the Federal Deposit Insurance Corporation, L'ain statistical information from representative banks. Enclosed is a copy of a memorandum dated March 27, 1961, showe results of the survey. Copies were furnished to the cooperating th' Asso.and agencies, including representatives of the American Bankers Aseoel .ation, the Association of Reserve City Bankers, and NABAC, The elation for Bank Audit Control and Operation. &rig the 4-10A 1,4 The problem and the solution are still under consideration and would appreciate any additional suggestions thereon. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM % WASHINGTON 25, D. C. Item No. 3 9/20/61 ADDRESS OFFICIAL CORRESPONDENCE **.‘ 4°,4E410V 440404* TO THE BOARD September 201 1961 Board of Directors, ?e First National Bank of Tuscola, xuscola, Illinois. Gentlemen: The Board of Governors has given consideration to your ap Plication for fiduciary powers which was forwarded through the z‘ecleral Reserve Bank of Chicago on July 21, 1961. In passing upon an application for permission to exercise the f. Rer. iduciary powers authorized by Section 11(k) of the Federal ta'!rve Act, the Board gives special consideration to a number of ali rrs having a bearing on the proper exercise of the fiduciary l_ority requested. These include the general condition of the 413743 the adequacy of its capital funds, the general character and of the management of the bank, and the qualifications and -werience of the proposed executive officer of the trust depart. The Board has considered the condition of your bank as tet o ed in reports of examination made by examiners for the 00 let et:troller of the Currency. In respect to capital adequacy, havetantial dividend payments made over the past several years e precluded the retention of satisfactory amounts of earnings as cePital accounts. A dividend paying policy which is as liberal °11r Policy appears to be, is not in keeping with prudent bank.. 01,%Procedure of providing ample capital funds for the protection : ac ePositors. Sound banking policy suggests the need for regular barulation in capital accounts of a satisfactory portion of the ken's earnings to provide for normal banking risks and to give teligIllate support to new or broadened functions which may be conv.,..ated„ such as engaging in fiduciary activities. The Board has also given due consideration to the affiliated 404,State Bank of Eureka, Eureka, Illinois, of which the Edwards -Liers are the principal owners and managers as they are of The 911 ILYA& -2National Bank of Tuscola. The management policies employed 111 the State Bank of Eureka have been unsatisfactory and the sub"of criticism for a long period by supervisory authorities, le and do not indicate the sincerity and capacity essential to the exercise of trust powers in another bank controlled by the same Ma nagement. For these reasons the Board does not consider the assumptior, ui additional responsibilities as a corporate fiduciary by your c"LIC to be warranted and does not approve your application for trust Pcwers, Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. • BOARD OF GOVERNORS OF THE 4 ?). FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. aa a4q, at, ti‘kft% * t‘o***** Item No. 4 9/20/61 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD September 20, 1961 lt,41s• Frederick L. Deming, President, eral Reserve Bank of Minneapolis, '41zIneap01i3 2, Minnesota. tlear 111r • Deming: This refers 4 13Provai buil . . is requested ops cling to provide a l'ations during any to your letter of August 30, 1961, in which for building alterations in the Minneapolis fallout shelter and stand-by power for essential interruption of regular power service. The Board authorizes your Bank to proceed with the project, ined in your letter, at an estimated cost of $110,000, ilding a contingency allowance of $3,700. It is noted that the shelter plan has been reviewed and local Civil Defense office. It appears that the area less ' .,'4) plus square feet of floor space for 600 persons is somewhat Stel, the 12-1/2 square feet a person referred to as follows in 1'01,7°. 2 of Sub item 3 of the "Summary of Fallout Shelter Principles J111. serve Banks", transmitted with the Board's circular letter of approlt, or 6; ( ,(1- by the 1961: Allow a minimum of 12-1/2 square feet per person, exclusive (4 stand-by equipment and fixed equipment located in the elter area. A minimum. of 10 square feet per person will be 'equired for eating, sleeping, and exercising; meeting this eriterion will require use of tiered bunks and minimum food Preparation equipment. About 2-1/2 feet per person will be required for storage of furnishings and supplies. n This ktlax 8 called to your attention inasmuch as the floor areas of 10 2..312e feet per person for eating, sleeping, and exercising and about lere _square feet per person for storage of furnishings and supplies or 4.,eco1 mended by the central office of OCDM upon reviewing a draft Summary. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. r Art.) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 5 9/20/61 WASHINGTON 25, D. C. ADORES!' arricom. CORRICOPONOCNCIC TO THE •OARO September 20, 1961 Comptroller of the Currency, Treasury Department, Washington 25, D. C. Attention: Mr. G. W. Garwood, Deputy Comptroller of the Currency. Dear Mr. Comptroller: office dated Reference is made to a letter from your to organize n July 28, 1961, enclosing copies of an applicatio recommendaa a national bank at Zapata, Texas, and requesting approved. be d tion as to whether or not the application shoul application made by A report of investigation of the Dallas indicates of an examiner for the Federal Reserve Bank each of the to ct generally favorable findings with respe this nature. of ns catio factors usually considered in appli favorable conmends recom nors Accordingly, the Board of Gover sideration of the proposal. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. r 4 4. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 6 9/20/61 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD September 201 1961 Board of Directors, Depositors Trust Company, Augusta, Maine. Gentlemen: The Board of Governors of the Federal Reserve System approves the establishment of a branch in the Rockland Plaza Shopping Center, Rockland, Maine, by Depositors Trust Company, provided the branch is established within one year from the date of this letter. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. • BOARD OF GOVERNORS OF THE Item No. 7 FEDERAL RESERVE SYSTEM 9/2061 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD September 20, 1961 Board of Directors, The First Pennsylvania Banking and Trust Company, Philadelphia, Pennsylvania. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Philadelphia, the Board of Governors of the Federal Reserve System approves . the establishment of a branch at 255 East County Line Road, Warminster Township, Bucks County, Pennsylvania, by The First Pennsylvania Banking and Trust Company, provided the branch is established within one year from the date of this letter. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. 4 LP Agg, k ( BOARD OF GOVERNORS OF THE 'ff . .. ** 4 FEDERAL RESERVE SYSTEM 4 Item No. 8 9/20/61 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE 0. t:Ttt '44440* TO THE BOARD September 201 1961 Board of Directors, Old Kent Bank and Trust Company, Grand Rapids, Michigan. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Chicago, the Board of Governors of the Federal Reserve Systcm approves the establishment of a branch at 807 Eastern Avenue, S. E., Grand Rapids, Michigan, by Old Kent Bank and Trust Company, provided the branch is established within one year from the date of this letter, and branch operations now conducted at 758 Wealthy Street, S. E.,will be discontinued simultaneously with the establishment of the above branch. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. • BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 9 9/20/61 WASHINGTON 25, D. C. ADDRESS OFFICIAL. CORREIPONCENCE TO THE BOARD September 20) 1961 Board of Directors, United California Bank, Los Angeles, California. Gentlemen: The Board of Governors of the Federal Reserve System approves the establishment of a branch in the downtown business section of Downey, California, by United California Bank, provided the branch is established within one year from the date of this letter. Vary truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. !LA Ov4v0C-ik:.) BOARD OF GOVERNORS OF THE Item No. 10 FEDERAL RESERVE SYSTEM 61 9/20/ WAS JAMES LOUIS ROBERTSON HEMOER OF THE EIOARO September 20, 1961. Mr, Phillip S. Hughes, Assistant Director for Legislative Reference, Executive Office of the President, Bureau of the Budget, Washington 25, D. C. Dear Mr. Hughes: st of This is to advise, in response to your reque led enrol the on Board the of September 18, 1961, for the views of Act tment Inves ess bill, S. 902, "To amend the Small Busin tion 1958, and for other purposes", that the Board has no objec dent, to approval of this bill by the Presi Sincerely yours, (Signed) J. L. Robertson J. L. Robertson.
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