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Minutes of actions taken by the Board of Governors of the Federal Reserve System on Thursday, September 30, 1954. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Martin, Chairman Szymczak Mills Robertson Miller Balderston Mr. Sherman, Assistant Secretary Mr. Kenyon, Assistant Secretary Minutes of actions taken by the Board of Governors of the Federal Reserve System on September 29, .19541 were approved unanimously. Letter to Mr. Hill, Vice President, Federal Reserve Bank of Phi ladelphia, reading as follows: In accordance with the request contained in your letter of September 241 1954, the Board approves the designation of the following as special assistant examiners for the Federal Reserve Bank of Philadelphia for the purpose of Participating in examinations of State member banks only: William J. Bolt, Jr. William Hughes Christie Donald W. Jones Lawrence C. Murdoch, Jr. Approved unanimously. Letter to the Board of Directors, The Thompsonville Trust Company, Thompson vine, Connecticut, reading as follows: Pursuant to your request submitted through the Federal Reserve Bank of Boston, the Board of Governors approves the establishment of a limited-power branch by The Thompsonville Trust Company, Thompsonville, Connecticut, on the north side of Main Street at the corner of Battle Street, Tom of Somers, Connecticut, provided the branch is established within six months of the date of this letter. Approved unanimously, for transmittal through the Federal Reserve Bank of Boston. 1442 9/30/54 -2Letter to Mr. Pondrom, Vice President, Federal Reserve Bank of Dallas, reading as follows: This refers to your letter of September 151 1954, addressed to Mr. Sloan, concerning the holding company affiliate status of Republic National Company, Dallas, Texas. Accompanying your letter to Mr. Sloan, dated March 301 19542 INAS a letter addressed to the Board by Mr. Fred F. Florence, President of Republic National Company, in which it was stated that the stock of Fair Park National Bank and Oak Lawn National Bank, previously owned by Republic National Company, was transferred to two new corporations. Based on the opening paragraph of your letter of September 151 it is Presumed that, except for the shares sold, Republic National Company has again acquired ownership of the shares of those banks previously owned by it. At the time Republic National Company and Republic National Bank reduce their ownership or control, directly or indirectly, or through any trustee arrangement, of the stock of each member bank to 50 per cent or less of the number of Shares voted for the election of directors of such bank at the preceding election, the holding company affiliate status of Republic National Company and Republic National Bank mill be terminated. Approved unanimously. Letter to the Board of Directors of Bank of Los Angeles, at Westwood, Los Angeles (Westwood Village), California, stating that, subject to conditions of membership numbered 1 and 2 contained in the Board Is Re gulation H, and the following special condition, the Board approves the bank'S application for membership in the Federal Reserve System and for the appropriate amount of stock in the Federal Reserve Bank of San Pl'ancisco, effective if and when the bank is authorized to commence busi4688 bY the appropriate State authorities: At the time of admission to membership such bank Shahl have a paid-up and unimpaired capital stock of not 144_3 9/30/54 less than $500,000 and other capital funds of not less than 4200,000. Approved unanimously, for transmittal through the Federal Reserve Bank of San Francisco. Letter to the Presidents of all Federal Reserve Banks reading as follows: In order to improve the usefulness of the weekly reporting member bank series, changes will be made, beginning With the data published for the second Wednesday following the date of this letter, to show total loans and total loans and investments on an adjusted basis by excluding therefrom the amount of interbank loans. The item of loans to banks will be shifted from its present location in the loan block down below "other" securities. This and the other changes are shown on the attached statement showing the condition of weekly reporting member banks in central reserve cities as of July 71 1954 on the old and revised bases. This particular statement was selected for illustration because the change in interbank loans was substantial and materially affected the significance of figures of total loans and total loans and investments as they were originally published. Changes will be made in the Bulletin table (page 858 of the August 1954 issue) by inserting a new column, loans and Investments adjusted; space will be provided by eliminating the present column for total investments. The column for loans to banks will be transferred to the right-hand column of the sheet following "other" securities. No change will be made in the format for publishing figures of adjusted loans and investments in the Member Bank Call Report or in the other statistical tables of the Bulletin (Pages 853-57 of the August 1954 issue). This inconsistency seems justified since the weekly statement is not the basis of long-term analyses, but is primarily a fast report covering a recent week at city banks. There is ample time for analysts to examine changes in quarterly and semi-annual data; in contrast, the weekly figures are issued and analyzed on tight schedules. Beginning on the same date, the Federal Reserve Banks of New York and Chicago are requested to obtain from their own records and report the borrowings by weekly reporting member 444 9/30/54 -4- banks. With this additional information, the borrowings reported by the member banks may be subdivided into two amounts: from Federal Reserve Banks and from others; this is also indicated in the attached revised statement, by use of estimated figures. For this purpose, new code words PARB for borrowings from Federal Reserve Banks and PAFO for borrowings from others are substituted for the present code word PAIN. No change, however, should be made in the reporting forms used by member banks. A breakdown of borrowings by banks outside of New York and Chicago is not being made at this time. However, we would appreciate your comments on this matter, and it may be made later if it seems desirable. In the interests of uniformity, it is suggested that corresponding changes be made in releases and other publications of weekly reporting member bank data at the Reserve Banks. Approved unanimously. Letter to Mr. Robert E. Freer, 1025 Connecticut Avenue, N. We, Washington, D. C., reading as follows: This is with further reference to your letter of August 161 1954 in which you urge on behalf of Mr. S. D. Hunter that the Board institute proceedings looking towards the issuance Of a formal complaint under section 7 of the Clayton Antitrust Act against the Commercial National Bank in Shreveport. The Board has studied the request made in your letter, ad, on the basis of its examination of the facts and in the light of the applicable statutory provisions and pertinent decisions of the courts, has concluded that it would not be warranted in complying with your request at this time. Approved unanimously, the Federal Reserve Bank of Dallas having been advised of the proposed letter pursuant to the understanding at the meeting on September 17, 1954, and the Bank having informed the Board that it had no comments or suggestions to offer. Memorandum dated September 30, 1954, from Ir. Carpenter, Secretary cf wiLe Board, recommending that the resignation of Mary C. Jamieson, 14.45 9/3o/54 Pile Clerk in the Office of the Secretary, be accepted effective September 28, 1954. Approved unanimously. Letter to Mr. Diercks, Vice President, Federal Reserve Bank of Chicago, reading as follows: This will acknowledge receipt of your letter of September 21, 1954$ requesting that the Board approve the designation of James S. Bicknell as a special assistant examiner for the Federal Reserve Bank of Chicago. It is noted that Mr. Bicknell is indebted to The Citizens State Bank of Clare, a State member bank, Clare, Michigan in the amount of $42500 but that his indebtedness will be transferred either to a nonmember bank or to an individual if employed by your bank. The Board approves the designation of Ir. Bicknell as a special assistant examiner for the Federal Reserve Bank of Chicago with the understanding that his indebtedness will be transferred from the member bank and with the further understanding that if transferred to a nonmember bank, he Will not participate in any examination of such bank until his indebtedness to the bank has been liquidated or otherwise eliminated. Approved unanimously.
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