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Minutes for September 24, 1965 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. Robertson Gov. Balderston Gov. Shepardson Gov. Mitchell Gov. Daane Gov. Maisel Minutes of the Board of Governors of the Federal Reserve System on Friday, September 24, 1965. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Balderston, Vice Chairman Robertson 1/ Shepardson Daane 1/ Maisel Sherman, Secretary Kenyon, Assistant Secretary Broida, Assistant Secretary Young, Adviser to the Board and Director, Division of International Finance Mr. Molony, Assistant to the Board Mr. Cardon, Legislative Counsel Mr. Fauver, Assistant to the Board Mr. Solomon, Director, Division of Examinations Mr. Goodman, Assistant Director, Division of Examinations Miss Eaton, General Assistant, Office of the Secretary Mr. Morgan, Staff Assistant, Board Members' Offices Mr. Mr. Mr. Mr. Messrs. Brill, Holland, Koch, Partee, Solomon, Axilrod, Eckert, Ettin, and Gramley of the Division of Research and Statistics Messrs. Katz, Reynolds, and Baker of the Division of International Finance Money market review. Reports on the Government securities Market, bank credit, and foreign exchange matters were given by Messrs. Axilrod, Eckert, and Baker, following which Mr. Koch discussed the Posture of monetary policy in recent weeks. For purposes of today's review, tables providing money market perspective, perspective on bank reserve utilization, and capital market perspective were distributed. 1/ Withdrew from meeting following money market review. 3162 9/ 24/65 -2After a general discussion of the staff reports all members of the staff except Messrs. Sherman, Kenyon, Molony, Fauver, Solomon, (Examinations), and Goodman, and Miss Eaton withdrew and the following entered the room: Mr. Hackley, General Counsel Mr. Egertson, Supervisory Review Examiner, Division of Examinations Mr. Goodfellow, Review Examiner, Division of Examinations The following actions were taken subject to ratification at the next meeting of the Board at which a quorum was present: Discount rates. The establishment without change by the fol- lowing Federal Reserve Banks on September 23, 1965, of the rates on discounts and advances in their existing schedules was approved unanimously, with the understanding that appropriate advice would be sent to the respective Banks: Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Kansas City, and Dallas. Foreign investment (Item No. 1). Following discussion based On the file that had been distributed concerning the matter, unanimous was given to a letter to Continental International Finance Corporation, Chicago, Illinois, granting permission to acquire shares of Union Industrial Bancaria, Barcelona, Spain. The meeting then adjourned. Secretary's Note: Governor Shepardson today approved on behalf of the Board the following items: 3 9/24/65 -3- Letter to the Federal Reserve Bank of Cleveland (attached Item approving the designation of Mary Louise Kelly as special assistant examiner. Letter to the Federal Reserve Bank of Minneapolis (attached Item No. 3) approving the appointment of Richard H. Swedean as assistant examiner. Memoranda recommending the following actions relating to the Board's staff: ..q.alary_i_r_l_ses, effective September 26, 1965 Name and title Division Basic annual salary To From Research and Statistics Jo Ann C. Corrado, Secretary Ruth E. Foster, Statistical Assistant (change in title from Statistical Clerk) Sally Louise Hayes, Secretary Nancy H. McCaslin, Technical Editor (change in title from Editorial Assistant) Nancy H. Teeters, Economist (5-hour day) $5,000 4,630 $5,165 5,000 5,000 7,250 5,165 7,710 6,628 6,851 5,096 5,346 4,780 5,165 4,555 4,826 7,842 5,013 8,237 5,283 7,955 8,200 Administrative Services Charles P. Brown, Operator (Duplicating Devices) Lois A. Chandler, Utility Clerk (change in title from Clerk) Theodore L. Jones, Operator (Duplicating Devices) Arthur S. Myers, Mechanical Foreman Roger M. Painter, Chauffeur Data Processing Winofred F. Altshuler, Chart Machine Operator Pe to engage in outside activity „rmission James L. Pierce, Economist, Division of Research and Statistics, to teach a graduate course in micro-economic theory at the University of Maryland. Secretary 31 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 1 9/24/65 WASHINGTON, D. C. 20551 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD September 24, 1965. Continental International Finance Corporation, 231 South La Salle Street, Chicago 90, Illinois. Gentlemen: In accordance with the request in your letter of August 3, 1965, addressed to NY. Leland Ross, Vice President, Federal Reserve Bank of Chicago, and on the basis of information furnished, the Board of Governors grants consent for your Corporation to purchase and hold 16,800 ordinary shares, par value Pesetas 500 each, of Union Industrial Bancaria, Barcelona, Spain, at a cost of approximately US$254,000, plus interest equalization tax of approximately USS38,000, provided such stock is acquired within one year from the date of this letter. The foregoing consent is given with the understanding that the foreign loans and investments of your Corporation, combined with those of Continental Illinois National Bank and Trust Company of Chicago and Continental Bank International, including the investment now being approved, will not exceed the guidelines established under the Voluntary Foreign Credit Restraint Effort now in effect and that due consideration is being given to the priorities contained therein. Very truly yours, (Signed) Karl E. Bakke Karl E. Bakke, Assistant Secretary. :AGE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 2 9/24/65 WASHINGTON, D. C. 20531 ACIONEON orrimAL COPHRESPONOLHCC TO THE 'BOARD September 27, 1965 Mr. H. W. Huning, Vice President, Federal Reserve Bank of Cleveland, Cleveland, Ohio. 44101 Dear Mt. Huning: In accordance with the request contained in your letter of September 21, 1965, the Board approves the designation of Mks. Mary Louise Kelly as a special assistant examiner for the Federal Reserve Bank of Cleveland. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 31131 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 3 9/24/65 WASHINGTON, D. C. 20551 AOORCIIIII OrrICIAL COMPICIIPOHOCHOC TO THC /CARO September 27, 1965 Mr. Hugh D. Galusha, Jr., President, Federal Reserve Bank of Minneapolis, 55440 Minneapolis, Minnesota. Dear Mr. Galusha: In accordance with the request contained in your letter of September 22, 1965, the Board approves the appointment of Richard H. Swedean as an assistant examiner for the Federal Reserve Bank of Minneapolis, effective October 4, 1965. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary.
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