The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
The attached set of minutes of the
Board of Governors of the Federal Reserve
System on Monday, September
8, 1958, has
been amended at the request of Governor
Balderston to delete the last sentence of
the first full paragraph on page
6.
If you approve these minutes as
amended, please initial bel
Chin. Martin
Gov. Szymcz
Gov. Vardaman
Gov. Mill
Gov. Robertson
Minutes for September
To:
8, 1958
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, if you
were present at the meeting, please initial in column A below to indicate that you approve the minutes.
If you were not present, please initial in column B
below to indicate that you have seen the minutes.
Chm. Martin
Gov. Szymczak
Gov. Vardaman
Gov. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
Minutes of the Board of Governors of the Federal Reserve System
on Monday, September
PRESENT:
8,
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
1958.
The Board met in Room 1202 at 2:30 p.m.
Martin, Chairman
Balderston, Vice Chairman
Szymczak
Vardaman 1/
Mills
Robertson
Shepardson
Mr.
Mr.
Mr.
Mr.
Mr.
Kenyon, Assistant Secretary
Fauver, Assistant Secretary
Riefler, Assistant to the Chairman
Thomas, Economic Adviser to the Board
Molony, Special Assistant to the Board
Messrs. Young and Noyes, Miss Burr, and Messrs.
Koch, Williams, Brill, Eckert, Gehman, Keir,
Manookian, Peret, T. Smith, Wernick, and
Wood of the Division of Research and Statistics
Messrs. Marget, Furth, Hersey, Sammons, Bangs, Katz,
Reynolds, and Summers of the Division of International Finance
Economic review.
In summarizing the review of international trade
and financial developments presented by the Division of International
Finance, Mr. Marget said that there still was no evidence of a strong
expansionary movement in export trade but a small recovery had taken
place.
Further developments depended largely on the economic climate
in countries abroad which had been characterized for the most part
recently by stability at high levels of activity.
Where downward
adjustments were evident it was encouraging to note that some of these
declines had been of a character which would lay the foundation for
sound recovery.
1/
Withdrew at point indicated in minutes.
-2-
9/8/58
The evidence presented by the members of the Division of Research
and Statistics in their review of domestic developments afforded further
corrdboration of the upward trend in economic activity.
Members of the two Divisions then commented informally in response
to a number of questions raised by members of the Board in the light of the
economic review, after which they withdrew from the meeting.
Messrs. Riefler and Thomas also withdrew at this point, and Messrs.
Hackley, General Counsel, Leonard, Director, Division of Bank Operations,
Masters, Director, Division of Examinations, and Sprecher, Assistant
Director, Division of Personnel Administration, entered the room.
Ratification of actions taken by the available members of the
Board
(Items 1 through
5, inclusive). In the absence of a quorumthe
available members of the Board met on August 22, 271 291 September
4 and
5, 1958, and took certain actions subject to ratification when a quorum
was available.
Memoranda covering the five meetings are attached hereto
as Items 1 through
5, inclusive.
There was a brief discussion of certain actions, including the
approval on August
29 of an increase to $750,000 from $7001000 in the
funds authorized for the purchase of a site for the new Denver Branch
building.
Governor Vardaman recalled that at the meeting on August 20
he recorded his reservations concerning the plan to locate the branch at
a new site.
He said that he continued to have reservations, but that he
did not wish to be recorded as voting against the action of the Board
2409
9/8/58
_3...
which, pursuant to the understanding at the August 20 meeting, was taken
only after receipt of Chairman Nielsen's letter indicating that the Denver
Branch directors did not care to present further views on the matter to
the Board of Governors.
Governor Mills asked for additional information on two items,
including the letter to the Federal Reserve Bank of Boston on August 29
(Item No. M-18) Which expressed the view that Section 32 of the Banking
Act of 1933 did not prevent directors and officers of participating member
banks from serving as directors and officers of a mutual trust investment
fund to be known as Connecticut Fiduciaries' Fund, Inc.
In response to Governor Mills' inquiry, Mr. Hackley commented that
the Board's position was identical with the position taken a few years
ago in relation to a similar fund created in New York State.
The issue
was whether the fiduciary fund was actually to engage in the sale and
distribution of securities, and in the opinion of the Legal Division the
fund would not be so engaged.
Therefore, on the specific set of facts
involved in this instance, the statute would not appear to prohibit
directors and officers of member banks from serving as directors and
officers of the mutual trust investment fund.
The Board's letter, Mr.
Hackley added, had been drawn in such a form as to refer specifically to
the facts of the particular situation in order to avoid establishing a
general precedent.
Governor Mills also asked for additional information about the
conference of the available members of the Board with representatives of
9/8/58
-4-
The Michigan Bank on Friday, September 5.
It was pointed out that no
action had been taken at this conference, that the statements made by
the representatives of The Michigan Bank were now being considered by
the staff, and that the matters discussed would be brought to the Board
for consideration at a later date.
Governor Mills commented that before leaving on vacation he had
reviewed the file, which was then in circulation, relating to the applications of The Michigan Bank to establish two additional branches in the
city of Detroit.
At that time, he said, he reached the opinion that the
applications were within the bounds of statutory permissibility and that
the Board should avoid taking the position of denying an application on
the ground of its views regarding the appropriate method of capitalization
of the applicant bank, and where such denial might go beyond the Board's
authority as set forth in the law.
As he understood it, the action
Proposed by The Michigan Bank with respect to its capital structure,
namely, the issuance of additional preferred stock, would not be contrary
to the law.
Hence, the Board's denial would have to be on the ground that
in principle it did not look with favor on the issuance of preferred stock
except in an emergency, and that would be carrying a principle to a point
where the Board might be challenged at law with regard to its decision.
Governor Mills noted in this connection that in the State of Michigan
the Board was already involved in litigation as the result of its denial
of a branch application in Grand Rapids and that a Detroit group previously
24.11
9/8/58
-5-
had won in the courts a bank charter which was opposed by the banking
authorities.
He would be fearful of the Board's needlessly involving
itself by taking a position that it might not be able to sustain at law.
Thereupon, the actions which had been taken by the available
members of the Board during the absence of a quorum were ratified by
unanimous vote.
At this point Governor Vardaman stated that he would have to
leave the meeting to keep an appointment with Mr. Oscar Keller of
Firstamerica Corporation who had called this afternoon and requested
an appointment at 4:00 p.m.
Mr. Molony also left the meeting at this
point.
Official salaries at Federal Reserve Bank of Chicago.
Governor
Balderston recalled the Board's action on July 30 when it was agreed that
salary payments to a Reserve Bank officer for a given calendar year should
not exceed the amount approved by the board of directors of his Bank and
by the Board of Governors.
He stated that during a meeting of the Board's
Budget Committee, Mr. Allen, President of the Federal Reserve Bank of
Chicago had asked that the Board's decision be reconsidered at least
insofar as it applied to the current year.
The biweekly payment plan
of the Chicago Bank had been in operation for approximately eight years
and during this time the officers had accrued certain sums.
Failure to
pay these accruals, Mr. Allen said, would create a definite morale problem.
In the course of the Committee's discussion, Governor Shepardson had
suggested that perhaps as a procedural matter the policy decision reached
4:1
1
9/8/58
-6-
by the Board on July 30 could be made effective on Jannery 1, 1959.
Adopting this effective date would permit payment of the amounts
accrued to date in favor of the officers of the Federal Reserve
Bank of Chicago.
Governor Balderston pointed out that the Board was placed
In a difficult position in this matter and that regardless of the
conclusion reached it was likely that inconsistencies would result.
For example, if the Chicago Bank were permitted to make the accrued
payments, there would be some inconsistencies as between that Bank
and other Reserve Banks.
On the other hand, if a Reserve Bank were
not permitted to make biweekly payments to its officers on the
basis the Chicago Bank had followed, there would be an inconsistency
as between that Bank and all of the Board's personnel with the
exception of the Board members themselves.
Governor Shepardson pointed out an additional possibility of
inconsistency inasmuch as officers recently retired at the Federal
Reserve Bank of Chicago had been paid the sums accrued in their favor.
Therefore, to deny the payment of the accrued sums to the officers
still on the Bank's staff would discriminate against them.
All things
considered, it seemed to him that the most appropriate procedure would
be to amend the Board's action on July 30 by the adoption of an
effective date.
9/8/58
-7Thereupon, it was unanimously agreed to amend the Board's
action so as to adopt January 1, 1959, as the effective date.
It
was understood that members of the Board's staff would talk with
President Allen while he was in Washington for the current meeting
of the Presidents' Conference in regard to implementing this
decision at the Chicago Reserve Bank.
It was also understood that
the views of the Board in this matter would be communicated to all
of the Federal Reserve Banks.
First National City Bank matter.
Mr. Hackley reported to
the Board that the statutory period for an appeal from the Board's
decision and order on July 10, 1958, in the matter of the First
National City Bank of New York and related applications expired as
Of this date.
He stated further that he had been informed by
Counsel for the First National City Bank on Friday, September 5,
that after prolonged consideration the bank had decided not to
seek judicial review of the Board's order.
The meeting then adjourned.
Secretary's Notes:
At the Board meetings on August 18 and 20, 1958,
it was agreed that, until further action on the
part of the Board, if any Reserve Bank advised
that its directors had established a rate of
2414
9/8/58
-8either 1-3/4 per cent or 2 per cent on discounts
and advances under Section313 and 13a along with
appropriate subsidiary rates on discounts and
advances, the Secretary's Office was authorized
to advise the Bank of approval of such rates. It
was also understood that if in any case this
involved an increase in the discount rate from
1-3/4 per cent to 2 per cent, a press statement
would be released in the usual form, all Reserve
Banks and branches would be notified by telegram,
and arrangements would be made for publication of
a notice in the Federal Register.
Pursuant to this authorization, the Secretary's
Office advised Reserve Banks of the approval of
discount rates as follows:
August 21 - For the Federal Reserve Bank of Dallas, effective
August 22, a rate of 2 per cent on discounts for
and advances to member banks under Sections 13 and
13a; a rate of 2-1/2 per cent on advances to member
banks under Section 10(b); and the remaining rates
in the Bank's existing schedule without change.
For the Federal Reserve Banks of New York, Philadelphia,
and Chicago, the rates on discounts and advances in
their existing schedules.
August 25 - For the Federal Reserve Bank of Atlanta, effective
August 26, a rate of 2 per cent on discounts for and
advances to member banks under Sections 13 and 13a;
a rate of 2-1/2 per cent on advances to member banks
under Section 10(b); a rate of 3-1/4 per cent on
advances to individuals, partnerships, and corporations
other than member banks under the last paragraph of
Section 13; a range of 2-3/4 per cent to 5-1/4 per cent
on advances under Section 13b direct to industrial and
commercial businesses; and the remaining rates in the
Bank's existing schedule without change.
For the Federal Reserve Bank of Boston, the rates on
discounts and advances in its existing schedule.
August 27 - For the Federal Reserve Bank of San Francisco, the
rates on discounts and advances in its existing
schedule.
2415
9/8/58
August 28
-9For the Federal Reserve Bank of Kansas City,
effective August 29, a rate of 2 per cent on
discounts for and advances to member banks
under Sections 13 and 13a; a rate of 2-1/2
per cent on advances to member banks under
Section 10(b); a rate of 3-3/4 per cent on
advances to individuals, partnerships, and
corporations other than member banks under
the last paragraph of Section 13; and the
remaining rates in the Bank's existing
schedule without change.
For the Federal Reserve Banks of New York,
Cleveland, Richmond, St. Louis, Minneapolis,
and Dallas, the rate3on discounts and advances
in their existing schedules.
September 3 - For the Federal Reserve Bank of Atlanta, the
rates on discounts and advances in its existing
schedule.
September 4 - For the Federal Reserve Banks of Chicago and
Minneapolis, effective September 5, a rate of
2 per cent on discounts for and advances to
member banks under Sectons 13 and 13a; a rate
of 2-1/2 per cent on advances to member banks
under Section 10(b); and the remaining rates
in the Banks' existing schedules without change
except for Minneapolis a rate of 3-3/4 per cent
on advances to individuals, partnerships, and
corporations other than member banks under the
last paragraph of Section 13.
For the Federal Reserve Banks of New York and
Philadelphia, the rates on discounts and advances
in their existing schedules.
On the dates indicated, Governor
Shepardson approved the following
items on behalf of the Board:
August 22 Memoranda from appropriate individuals concerned recommending the
following items affecting the Board's staff:
Basic annual salary at the rate of $8,570 for Robert M. Fisher, whose
appointment as Economist in the Division of Research and Statistics was
approved on April 25, 1958, effective the date he assumes his duties.
241
9/8/58
-10-
August 22 (continued)
Acceptance of the resignation of Frank M. Tamagna, Consultant on Savings
Statistics, Division of Research and Statistics, effective September 9,
1958.
August 27 Memorandum dated August 26, 1958, from Mr. Noyes, Adviser, Division
of Research and Statistics, recommending that Carl T. Ant, Jr., a member
of the staff of that Division, be granted an advance of annual leave up
to five days.
Memorandum dated August 25, 1958, from Mr. Masters, Director, Division
of Examinations, recommending that Walker White, Jr., Review Examiner in
that Division, be granted the necessary leave with pay, without charge
to annual leave, for the purpose of attending the 1959 Summer Session of
The Graduate School of Banking at Rutgers University, New Brunswick,
New Jersey; that the Board reimburse him for transportation expenses
from Washington, D. C.1 to New Brunswick, New Jersey; and that the Board
pay the registration fees, resident and extension tuition fees, and
dormitory and dining hall charges incident to Mr. White's attendance.
Memorandum dated August 27, 1958, from Mr. Fauver, Assistant Secretary,
requesting that he be authorized to extend an invitation to a group of 16
Indian bankers to visit the Board's offices on Wednesday, October 1, for
a meeting in Room 1202 and for luncheon in the Staff Dining Room.
Letter to the Bureau of Employment Security, Department of Labor,
designating Harold L. Emerson of the Division of Personnel Administration
as liaison for the Board in connection with the administration of the
Federal employee unemployment compensation program. A copy of the letter
is attached as Item NO. 6.
August 28 Letter to the Federal Reserve Bank of New York (attached Item No. 7)
approving the designation of John T. Seguin as special examiner.
August 29 Memoranda from appropriate individuals concerned recommending acceptance
of the resignations of the following persons on the Board's staff:
W. Geoffrey Shepherd, Research Assistant, Division of
Research and Statistics, effective September 5, 1958.
Grace Stewart, Clerk, Division of International Finance,
effective September 26, 1958.
2417
9/8/58
-11-
August 29 (continued)
Memorandum dated August 29, 1958, from Mr. Masters, Director, Division
Of Examinations, recommending that Harry J. Meyer, who is retiring from
the staff of the Federal Reserve Bank of New York effective today, be
appointed as a consultant on a temporary basis, effective on or about
September 8, 1958, and not extending beyond December 31, 1958, for work
in the foreign bank supervisory area, with compensation at the rate of
$4o per day for his services plus $12 per diem in lieu of expenses while
in a travel status and necessary expenses for travel.
Letter to the Federal Reserve Bank of New York (attached Item
No. 8) approving the appointment of Clifford H. Guion as assistant
examiner.
September 2 Letter to the Federal Reserve Bank of Richmond (attached Item
No. 9) approving the designation of Harold M. Scott as special assistant
examiner.
Memorandum dated September 2, 1958, from Mr. Kelleher, Director,
Division of Administrative Services, recommending that a termination
notice dated August 29, 1958, from Henry Richelsen as manager of the
Board's barber shop, be accepted effective at the close of business
September 5, 1958, and that an agreement with Rufus M. Cordell to take
over the management of the shop beginning September 8, 1958, be approved
subject to a satisfactory investigation by the Division of Personnel
Administration.
Memorandum dated August 27, 1958, from Mr. Marget, Director, Division
of International Finance, recommending acceptance of the resignation of
Mary E. McCarthy, Clerk in that Division, effective September 12, 1958.
September
3-
Telegram to the Federal Reserve Bank of San Francisco (attached
Item No. 10) approving the appointment of Allen F. Goodfellow as assistant
examiner.
September
4-
Letter to the Federal Reserve Bank of New York (attached Item No. 11)
approving the appointment of Murray J. Alimo as assistant examiner.
2418
9/8/58
September
-12-
5-
Memoranda from appropriate individuals concerned recommending the
following actions affecting the Board's staff:
Change in employment basis
Georgine Winslett, Clerk-Typist in the Division of Research and
Statistics, from a full-time basis to a half-time basis, with an
adjustment in her basic annual salary from $3,685 to $1,843, effective
September 8, 1958.
Acceptance of resignation
Edward J. Kane, Research Assistant, Division of Research and
Statistics, effective September 17, 1958.
Pursuant to the recommendations contained
in memoranda from appropriate individuals
concerned, Governor Robertson, in the absence
of Governor Shepardson, approved on behalf
of the Board on September 5, 1958, increases
in the basic annual salaries of the following
persons on the Board's staff in the amounts
indicated, effective September 7, 1958:
Name and title
Division
Basic annual salary
From
To
Research and Statistics
Shirley A. Barham, Clerk Stenographer
Elf3J.e Q. Davis, Statistical Clerk
Joanne L. Jessup, Clerk-Typist
Nancy H. Teeters, Economist
Joan R. Winter, Statistical Clerk
$ 3,945
4,230
3,590
6,435
4,230
$ 4,040
4,325
3,685
6,585
4,325
12,770
13,070
12,770
13,070
3,590
3,685
International Finance
Ralph C. Wood, Chief, European Section
Samuel I. Katz, Chief, British Commonwealth,
Scandinavia, & Near East Section
Administrative Services
Gladys W. Garber, Mailing List Clerk
2419
Item No. 1
9/8/58
Memorandum of a meeting of the available members of the Board
of Governors of the Federal Reserve System which was held in the Special
Library on Friday, August 22, 1958, at 10:00 a.m.
PRESENT:
Mr. Balderston, Vice Chairman
Mr. Vardaman
Mr. Shepardson
Mr.
Mr.
Mr.
Mr.
Kenyon, Assistant Secretary
Fauver, Assistant Secretary
Masters, Director, Division of Examinations
Solomon, Assistant General Counsel
Items circulated to the Board.
In accordance with the procedure
agreed upon at the meeting of the Board on August 20, 1958, the following
items, which had been circulated to the available members of the Board
and copies of which are attached hereto under the respective item numbers
indicated, were approved unanimously by the members of the Board present,
subject to ratification of the respective actions at such time as a
quorum of the Board was present:
Item No.
Letter to The Merrill Trust Company, Bangor,
Maine, approving the establishment of a branch
in Woodland, Maine. (For transmittal through
the Federal Reserve Bank of Boston)
M-1
Letter to Wachovia Bank and Trust Company,
Winston-Salem, North Carolina, approving the
establishment of a seasonal branch in the
Growers Warehouse at Glenn Avenue and 32nd
Street. (For transmittal through the Federal
Reserve Bank of Richmond)
M-2
2420
8/22/58
-2Item No.
Letter to the First National Bank in Chicago Heights,
Chicago Heights, Illinois, approving its application
for fiduciary powers. (For transmittal through the
Federal Reserve Bank of Chicago)
M-3
Letter to the Farm Credit Administration consenting
to its request for certain information concerning the
Bank of Dublin, Dublin, Virginia. (With the understanding that the Federal Reserve Bank of Richmond
would be advised by telephone)
m-4
Letter to the Federal Reserve Bank of Richmond approving
the payment of salary to John C. Horigan as Chief Examiner
at the rate fixed by the Board of Directors.
m-5
The meeting then adjourned.
7,4.1
rXQ
-vt--*21e,
,
0
2 Assistant
Secretary
24,41
BOARD OF GOVERNORS
OF THE
Item No. 14-1
8/22/58
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
August 221 1958
Board of Directors,
The Merrill Trust Company,
Bangor, Maine.
Gentlemen:
Pursuant to your request submitted through the
Federal Reserve Bank of Boston, the Board of Governors of
the Federal Reserve System approves the establishment by
The Merrill Trust Company of a branch in Woodland, Town
of Baileyville, Maine, provided the branch is established
Within six months from the date of this letter, and approval of the State authorities is effective as of the date
the branch is established.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2422
BOARD OF GOVERNORS
OF THE
Item No. M-2
8/22/58
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS
orriciAL
CORRESPONDENCE
TO THE BOARD
August 22, 1958
Board of Directors,
Wachovia Bank and Trust Company,
Winston-Salem, North Carolina.
Gentlemen:
Pursuant to your request submitted through the Federal
Reserve Bank of Richmond, the Board of Governors of the Federal
Reserve System approves the establishment of a branch by
Wachovia Bank and Trust Company, Winston-Salem, North Carolina,
in the Growers Warehouse at Glenn Avenue and 32nd Street, WinstonSalem, North Carolina, during the 1958 tobacco marketing season,
covering an approximate period of September through December,
inclusive.
It is understood that the bank wishes to operate an office
at this location each year during the tobacco marketing season.
Consequently, the Board of Governors also approves the establishment
and operation of a new branch at this location each succeeding year,
subject to cancellation of such approval upon reasonable notice to
the bank prior to the beginning of such period of any year.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2423
BOARD OF GOVERNORS
OF THE
Item No. M-3
8/22/58
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
August 22, 1958
Board of Directors,
First National Bank in Chicago Heights,
Chicago Heights, Illinois.
Gentlemen:
The Board of Governors of the Federal Reserve System
has given consideration to your application for fiduciary powers
and grants you authority to act, when not in contravention of
State or local law, as trustee, executor, administrator, registrar
of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics, or in any other fiduciary capacity
In which State banks, trust companies, or other corporations
Which come into competition with national banks are permitted
to act under the laws of the State of Illinois. The exercise
of such rights shall be subject to the provisions of Section 11(k)
of the Federal Reserve Act and Regulation F of the Board of
Governors of the Federal Reserve System.
A formal certificate indicating the fiduciary powers
which First National Bank in Chicago Heights is now authorized
to exercise will be forwarded to you in due course.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2424_
BOARD OF GOVERNORS
OF THE
Item No. M-4
8/22/58
FEDERAL RESERVE SYSTEM
WASHINGTON 25. O. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
August 22, 1958
Mr. Harold T. Mason, Deputy Governor,
Farm Credit Administration,
Washington 25, D. C.
Dear Mr. Mason:
Receipt is acknowledged of your letter of August
5,
1958, addressed to Mr. Masters, regarding the furnishing by
the Board of Governors of certain information concerning the
Bank of Dublin, Incorporated, Dublin, Virginia.
The Board has considered the request for information,
With due regard to the provisions of Section 208(e) of the
Federal Farm Loan Act and of Section 8(a) of the Board's Rules
of Organization, and consents to furnishing the desired information to your day authorized representative.
It is suggested that arrangements be made with
Mr• Masters to have your representative visit the Board's
Offices, as suggested in your letter, for the purpose of
obtaining the information orally from the Board's Division
of Examinations.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2425
BOARD OF GOVERNORS
OF THE
Item No. M-5
8/22/58
FEDERAL RESERVE SYSTEM
WZ,
0
.0
0
0
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
August 22, 1958
CONFIDENTIAL FR
Mr. John B. Woodward, Jr., Chairman of the Board,
Federal Reserve Bank of Richmond,
Richmond 13, Virginia.
Dear Mr. Woodward:
The Board of Governors approves the payment of
salary to the following officer of the Federa
l Reserve
Bank of Richmond for the period
September 1 through
December 31, 1958, at the rate indicated, which is
the
rate fixed by your Board of Directors as report
ed in your
letter of August 14, 1958:
Name
John C. Horigan
Title
Chief Examiner
Annual Salary
$12,000.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2426
Item No. 2
9/8/58
Memorandum of a meeting of the available members of the Board
of Governors of the Federal Reserve System which was held in the Special
Library on Wednesday, August 27, 1958, at 10:00 a.m.
PRESENT:
Mr. Martin, Chairman
Mr. Balderston, Vice Chairman
Mr. Shepardson
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Kenyon, Assistant Secretary
Fauver, Assistant Secretary
Riefler, Assistant to the Chairman
Leonard, Director, Division of Bank Operations
Young, Director, Division of Research and
Statistics
Hackley, General Counsel
Sammons, Associate Adviser, Division of
International Finance
Sprecher, Assistant Director, Division of
Personnel Administration
O'Connell, Assistant General Counsel
Hostrup, Assistant Director, Division of
Examinations
Nelson, Assistant Director, Division of
Examinations
Huning, Review Examiner, Division of Examinations
Items circulated or distributed to the Board.
In accordance
With the procedure agreed upon at the meeting of the Board on August 20,
1958, the following items, which had been circulated or distributed to
the available members of the Board and copies of which are attached
hereto under the respective item numbers indicated, were approved
unanimously by the members of the Board present, subject to ratification
of the respective actions at such time as a quorum of the Board was present:
Item No.
Letter to the National Savings and Trust Company,
Washington, D. C., approving an investment in bank
premises. (For transmittal through the Federal
Reserve Bank of Richmond)
m-6
2427
8/27/58
-2Item No.
Letter to the Citizens Bank of Hattiesburg,
Hattiesburg, Mississippi, granting an extension
of time within which to establish a branch in
Petal, Mississippi. (For transmittal through
the Federal Reserve Bank of Atlanta)
M-7
Letter to the Federal Reserve Bank of Kansas City
concurring in the view that section 32 of the
Banking Act of 1933 would not be applicable to
the concurrent service of Mr. Arthur Mag as a
director of the First National Bank of Kansas
City and a director of Stern & Stern Land Company.
M-8
Letter to the United States Post Office Department
expressing interest in the results of consideration
by that Department of proposals which might result
in savings to the Treasury and the Federal Reserve
Banks on shipments of currency and securities by
registered mail.
M-9
Letter to the Federal Reserve Banks inviting comments
regarding a proposed amendment to Regulation R.
M-10
Letter to the Federal Reserve Bank of New York
interposing no objection to arrangements involved
In a proposed assignment for Mr. Herbert Turkus.
Letter to the Federal Reserve Bank of Minneapolis
approving the payment of salary to Robert W. Worcester,
as Assistant Cashier assigned to the Helena Branch,
at the rate fixed by the board of directors.
M-12
Letter to the Lemoyne Trust Company, Lemoyne,
Pennsylvania, extending the time within which it
IllaY establish a branch in Camp Hill. (For transmittal through the Federal Reserve Bank of Philadelphia)
M-13
Letter to the State Bank, Gladbrook, Iowa, consenting
to the retirement of its outstanding preferred stock.
(For transmittal through the Federal Reserve Bank of
Chicago)
m-14
Letter to The National Bank of Bossier City, Bossier
City, Louisiana, approving its application for fiduciary
Powers. (For transmittal through the Federal Reserve
Bank of Dallas)
M-15
2428
8/27/58
-3Item No.
Letter to The Wolfe City National Bank, Wolfe City,
Texas, approving its application for authority to act
as trustee for the Mount Carmel Cemetery Association.
(For transmittal through the Federal Reserve Bank of
Dallas)
M-16
Letter to Texas Gulf Industries, Inc., Houston, Texas,
advising that the company has been determined not to be
a holding company affiliate except for the purposes of
section 23A of the Federal Reserve Act. (For transmittal through the Federal Reserve Bank of Dallas)
M-17
Officer salaries at Federal Reserve Bank of Chicago.
Governor
Balderston reported to the Board further developments with regard to
Procedural matters in the payment of officer salaries at the Federal
Reserve Bank of Chicago.
It was recalled that at its meeting on July 30
the Board had taken the position that salary payments to a Reserve Bank
officerfcr a calendar year should not exceed the annual salary approved
by the board of directors of his bank and by the Board of Governors.
This question had arisen primarily at the Federal Reserve Bank of Chicago
Which had adopted a bi-weekly system of payments in 1950.
In 1959,
adherence to this schedule would result in 27 pay days and therefore
In actual payments greater than the annual salaries approved by the
Board.
Advice of the Board's position had been conveyed to the Federal
Reserve Bank of Chicago and when President Allen met recently with the
Budget Committee of the Board he had expressed concern over the effect
of the policy.
He felt that since the Chicago bi-weekly plan had been
2429
8/27/58
in effect for several years, there had developed certain expectati
ons
on the part of the Bpnk's officers and that to change
the procedure now
might have serious effects on morale.
During the budget conference the suggestion had been advanced by
Governor Shepardson that perhaps as a procedural matter the effective
date of the Board's recent action might be fixed at January 1, 1959,
which would permit a payment at the end of the current calendar year
to take care of the accruals
that had developed under the bi-weekly
schedule, after which a semi-monthly schedule or some other schedule in
conformity with the Board's decision could be instituted.
Following a brief discussion it was agreed that this was a matter
on which a
final decision should be postponed until a quorum of the Board
was availdble.
At Chairman Martin's suggestion it was understood that
this item would be placed on the agenda
for the Board meeting on September 8.
In a concluding comment, Governor Balderston said that Mr. Allen
had indicated
in a telephone conversation that if the Board was disposed
not to accept the
amendment suggested by Governor Shepardson, he (Mr.
Allen) would like an opportunity to appear before the Board because there
were complexities
Mr. Allen had uncovered one by one which he felt that
the Board
should be aware of before making a final decision.
Budget discussions.
Governor Balderston stated that the Board's
Budget Committee (with Governor Shepardson acting as a second
member in
the absence
of Governors Szymczak and Mills) had now met with the Presidents
8/27/58
-5-
of six Federal Reserve Banks for preliminary discussion of 1959 budget
problems and that the meetings had been quite satisfactory.
He said
that Mr. Leonard had been asked to furnish each President with minutes
of the meeting in which that President participated in order that the
Reserve Bank would have available the same record of the meeting as
kept in the Board's files.
Governor Balderston noted that in at least two Reserve Banks
questions regarding the procedure appeared to have arisen at the
director level.
In one Bank such a question had arisen even though
the President and First Vice President had worked out a careful statement
with respect to the reasons for the new procedure.
At the moment,
however, there did not appear to be any particular problem; the Presidents
seemed to understand and endorse the procedure that the Board was following
and the meetings were proceeding smoothly.
Report by the Legislative Reference Service of the Libr
Congress.
As a matter of information, Mr. Young brought the members of
the Board up to date on developments in connection with a report prepared
by the Legislative Reference Service of the Library of Congress for the
Senate Banking and Currency Committee 04-id referred to the Board for staff
comment by Chairman Fulbright of that Committee on June 30, 1958.
The
report, entitled "Federal Reserve Policies and Economic Stability, 19511957," had been reviewed by the staff, and comments resulting from that
8/27/58
-6-
review had been transmitted informally, as indicated in a letter from
Chairman Martin to Chairman Fulbright on August 13.
Mr. Young said he had been informed by Mr. Asher Achinstein, of
the Legislative Reference Service, who had prepared the study, that a
revised draft would be received this afternoon.
He was told that the
revised draft would incorporate most of the staff's suggestions as to
facts and some of the suggestions as to the theory of Federal Reserve
operations, but that there would remain some differences of interpretation.
Mr. Young stated that the staff would review the revised draft as quickly
as possible inasmuch as he hwi been given to understand that the Committee
hoped to be able to send the report to the printer not later than
September 15.
While it had been indicated that a memorandum of staff
comments could be submitted, if desired, Mr. Young pointed out that the
decision on whether to sUbmit such a memorandum would depend to a large
extent on a reading of the revised draft.
Thereupon the meeting adjourned.
Assistant Secretary
BOARD OF GOVERNORS
OF THE
4:0 COP.1
7
:4,
‘
Item No.
FEDERAL RESERVE SYSTEM
*
m-6
8/27/58
*10/
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
—
**1
4
.ti bilt0
004**
TO THE BOARD
0
August 271 1958
Board of Directors,
National Savings and Trust Company,
Washington 5, D. C.
Gentlemen:
Pursuant to your request submitted through the Federal
Reserve Bank of Richmond, the Board of Governors of the Federal
Reserve System approves, under the provisions of Section 24A of
the Federal Reserve Act, an additional investment in bank premises
by National Savings and Trust Company, Washington, D. C., of not
to exceed $250,000 for the purpose of acquiring real estate in
connection with establishing drive-in facilities adjacent to the
bank's main office.
It is understood that the $250,000 additional investment in bank premises will be charged to undivided profits at the
time the property is acquired.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
243
BOARD OF GOVERNORS
OF THE
q''0V0 00ki,N
`kti,4'4.,
** 4. - •--'t-s-..) I
A
11`Q
ov,
FEDERAL RESERVE SYSTEM
Item No. 14-7
WASHINGTON 25, D. C.
ml ,1
li
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
August 27, 1958
Board of Directors,
Citizens Rank of Hattiesburg,
Hattiesburg, Mississippi.
Gentlemen:
Pursuant to your request submitted through the
Federal Reserve Bank of Atlanta, the Board of Governors
further extends until April 3, 1959, the time within which
the Citizens Bank of Hattiesburg, Hattiesburg, Nississippi,
may establish a branch at 117 South Main Street, Petal,
Mississippi, under the authorization contained in the Board's
letter dated October 3, 1957.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2434
BOARD OF GOVERNORS
OF THE
Item No. M-8
8/27/58
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS
OFFICIAL
CORRESPONDENCE
TO THE BOARD
August 27, 1958
Mr. George H. Clay,
:lice President and General Counsel,
Federal eserve bank of Aansas City,
lansas City 6, Missouri.
Dear Er. Clay:
:freference is !rade to your letter of July d, 1958, and
the enclosed letter from /ir. Arthur Nag regardin the question
whether section 32 of the Banking Act of 1933 would prevent him
from being a director of Stern 2 Stern Land Company while serving
as a director of the First 1:ationa1 bank of Kansas City.
Stern Land Company is
Briefly, it appears that Stern
not engaged in any business of the kinds described in section 32,
but that it owns 61.8 per cent of the stock of Stern brothers &
Co., which is primarily engaged in such business. It further
appears that if the corporate entities were to be disregaroed
and the income derived by Stern a Stern Land Company from its
investment in Stern Brothers J: Co. which is attributable to the
section 32 business done by the latter were to be rep:arded as
income from section 32 business done by the former, it would have
constituted percentages ranging from 6.57 to 15.30 per cent of
the total income of Stern 't Stern Land Company durinp: the last five
calendar years.
Stern Land Company was organized
It appears that Stern
in 1906 for the purpose of engaging in farming, cattle, land and
Oil business, and devotes its attention to this type of business
almost entirely. Mr. ichard Stern, who is President of Stern
Stern Land Company.
Brothers .Co., takes no active part in Stern
Eederal eserve Bank of
Kansas City
-2-
Consequently, it appears that Mr. flag will not be a
director, officer or employee of a corporation "primarily engaged"
in the business described in section 32, but will be a director
of a corporation owning 61.8 per cent of the stock of a corporation engaged in such business. In the circumstances described,
and since it appears that the proposed arrangement is not for the
Purpose of evading the statute, the Board sees no reason for disregarding the corporate entities or for departing from the literal
words of the statute, and is of the opinion that section 32 would
not apply to Mr. Hag if he were to become a director of Stern &
Stern Land Company.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
243G
BOARD OF GOVERNORS
4.01:1111} rh)
•
OF THE
4
)"
,
1
0
FEDERAL RESERVE SYSTEM
1
'
i;r.4:
\
WASHINGTON 25. D. C.
Item Nb. M-9
8/27/58
1
ADDRESS OFFICIAL CORRESPONDENCE
4 44.
TO THE BOARD
August 271 1958
The Honorable Hyde Gillette,
Assistant Postmaster General,
United States Post Office Department,
Washington 25, D. C.
Dear Mr. Gillette:
At a meeting held in your office on May 16, 1958) attended
by representatives of your Department, the United States Treasury
Department, and the Board of Governors of the Federal Reserve System)
there was a discussion of the costs involved in shipping currency and
securities by postal facilities from the Treasury in Washington to
Federal Reserve Banks and branches.
The Federal Reserve Banks pay all charges for shipment of
new Federal Reserve notes from Washington. These shipments are in
large amounts, usually over g,000)000 and ranging up to $15,000,000.
They are made by registered mail or fourth class mail treated as
registered mail. The Banks have their expenses under constant review,
and questions are raised from time to time as to savings that might be
gained by use of alternative means of shipment of new currency from
Washington.
The Federal Reserve Banks also incur substantial costs for
shipments of currency and securities to and from their member banks.
These shipments are in much smaller amounts than shipments of new
currency from Washington to the Reserve Banks and branches. They
seldom exceed a1000)000 in amount, and on the basis of a sample survey made in 1953, a summary of which was supplied to your Department,
it appears that the majority of them are under $50,000. A considerable
number of these shipments are made by armored car. In 1954, surcharges
were reduced on shipments of over ',1)000,000 and it was understood at
the time that the Post Office Department had under way a study of the
entire postage rate structur.:; Including surcharge rates on shipments
of 0_,000,000 and less.
Representatives of your office indicated at the meeting on
T!ay 16 that the Post Office Department had several proposals under
The Honorable Hyde Gillette
consideration which might result in substantial economies to the
Treasury and Federal Reserve Banks for shipments of currency and
s.,Dcurities by registered nil, both from Washington to the Reserve
Bauk5 and between the Reserve Banks and their member banks.
The Board will be interested in learning of the results
of your consideration of these matters, and Board representatives
stand ready to render any assistance they can if you so desire.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. M-10
8/27/58
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONOCNCt:
TO THE BOARD
August 27, 1958
Dear Sir:
to RegulaEnclosed is a draft of a proposed amendment
contained in that
tion R which would broaden the exception now
regulation.
h the
It will be appreciated if you will furnis
ing this proposal.
Poard with any comments you may have regard
tion,
For your further information in this connec
ound of the
there is enclosed a memorandum giving the backgr
existing exception.
Very truly yours,
i/
-
/2
/
•-.4.-!/) 1,4
/
Kenneth A. Kenyon,
Assistant Secretary.
Enclosures
BANKS
TO TEE FRESIDENTS OF ALL FEDERAL RESERVE
24
PROPOSED AMENDMENT TO REGULATION R
after the
Amend section 2 of Regulation R by inserting
debentures,
words "Federal Land banks," the words "bonds, notes,
or other securities of the Central Bank for Cooperatives, the
Mortgage Association,
Federal Home Lnan Banks, the Federal National
".
the Internatinnal Bank for Reconstruction and Develnpment,
BOARp. OF GOVERNORS
OF THE
Item No. 14-11
8/27/58
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE ElOARD
August 27, 1958
Mr. William H. Braun, Jr.)
Secretary,
Federal Reserve Bank of New York,
New York 451 New York.
Dear Mr. Braun:
This letter is in reply to your letter of
August 18, 1.958, regarding the proposed leave of absence
of Mr. S. Herbert Turkus in order to permit him to
accept an assignment with the International Cooperation
Administration to assist the National Bank of Viet-Nam
in setting up a Bank Examinations Department.
The Board interposes no objection to the
arrangements outlined in your letter.
Sincerely yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
r'N
4.4
ri1
BOARD OF GOVERNORS
OF THE
Item No. M-12
8/27/58
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
August 27, 1958
CONFIDENTIAL(FR)
Mr. Frederick L. Deming, ?resident,
Federal Reserve Bank of Minneapolis,
Minneapolis 2, Minnesota.
Dear Mr. Deming:
The Board of GovernorJ approves the payment
of salary to the following newly appointed officer of
the Federal Reserve Bank of Minneapolis, assigned to
the Helena Branch, for the period September 1 through
December 31, 1958, at the rate indicated, which is the
rate fixed by your Board of Directors as reported in
your letter of August 14, 1958:
NameTitle
Robert W. Worcester
Assistant Cashier
Annual
Salary
$10,000
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2442
BOARD OF GOVERNORS
OF THE
Item No. M-13
8/27/58
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADORES!! orrtciAL CORRESPONDENCE
TO THE BOARD
dtmttt.
August 27, 1958
Board of Directors,
Lemoyne Trust Company,
Lemoyne, Pennsylvania.
Gentlemen:
In accordance with the request submitted through
the Federal Reserve Bank of Philadelphia, the Board of
Governors extends to October 31, 1958, the time within which
Lemoyne Trust Company, Lemoyne, Pennsylvania, may establish
a branch in Camp Hill, Cumberland County, Pennsylvania. It
is understood the branch is to be located 100 feet west of
the 3025 Market Street location specified in the Board's
letter of May 1, 1957.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
244,
BOARD OF GOVERNORS
OF THE
Item No.
8/27/58
FEDERAL RESERVE SYSTEM
-14
WASHINGTON 25, O. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
August 271 1958
Board of Directors,
State Bank,
Gladbrook, Iowa.
Gentlemen:
Pursuant to your request submitted through the Federal
Reserve Bank of Chicago, the Board of Governors of the Federal
Reserve System hereby gives its consent, under the provisions of
Section 9 of the Federal Reserve Act, to the retirement of
$501000 outstanding preferred stock by State Bank, Gladbrook,
Iowa.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
Or THE
Item No. M-15
8/27/58
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE SOAR°
August 271 1958
Board of Directors,
The National Bank of Bossier City,
Bossier City, Louisiana.
Gentlemen:
The Board of Governors of the Federal Reserve System
has given consideration to your supplemental application for
fiduciary powers and grants you authority to act, when not in
contravention with State or local law, as trustee, executor,
administrator, registrar of stocks and bonds, guardian of
estates, assignee, receiver, committee of estates of lunatics,
or in any other fiduciary capacity in which State banks, trust
companies, or other corporations which come into competition
With national banks are permitted to act under the laws of
the State of Louisiana. The exercise of such rights shall be
subject to the provisions of Section 11(k) of the Federal
Reserve Act and Regulation F of the Board of Governors of
the Federal Reserve System. The specific authorization
granted on September 23, 1953, to act as trustee in connection
With Public Housing Authority bonds and as registrar of such
bonds, is now included in the general fiduciary powers herein
authorized.
A formal certificate indicating the fiduciary
powers which The National Bank of Bossier City is now
authorized to exercise will be forwarded to you in due course.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2445
BOARD OF GOVERNORS
OF THE
Item No. M-16
8/27/58
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
August 27, 1958
Board of Directors,
The Wolfe City National Bank in Wolfe City,
Wolfe City, Texas,
Gentlemen:
The Board of Governors of the Federal Reserve
System has given consideration to your application for
fiduciary powers and grants you authority to act, when
not in contravention of State or local law, as trustee
for Mount Carmel Cemetery Association, Wolfe City, Texas.
The exercise of this authority shall be subject to the
provisions of section 11(k) of the Federal Reserve Act
and Regulation F of the Board of Governors of the Federal
Reserve System.
A certificate evidencing this specific authority
is enclosed.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
Enclosure
2446
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
Item No. M-17
8/27/58
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
August aj, 1958
Robert C. Lanier, President,
Texas Gulf Industries, Inc.,
945 San Jacinto Building,
houston 2, Texas.
pear Er. Lanier:
This refers to the request contained in your letter of
July 10, 190, submitted through the Federal Reserve Bank of Dallas,
for a determination by the Board of Governors of the Federal Reserve
System, as to the status of the Texas Gulf Industries, Inc., as a
holding company affiliate.
From the information supplied, the Board understands that
Texas Gulf Industries, Inc., has withdrawn from the field of finance
business and its present principal activities are the development of
lieal estate which it holds; that Texas Gulf Industries, Inc., is a
,rc
1
company affiliate of The Citizens National Dank of Greenville,
'exae, by reason of the fact that it owns more than 50 per cent of the
number of shares voted at the latest election of directors of such
1k; but that Texas Gulf Industries, Inc., does not own or control,
,urectly or indirectly, any other bank stock, and does not manage or
control, directly or indirectly, any other banking institution.
In vieu of these facts the Board has determined that
Texas Gulf Industries, Inc., is not engaged, directly or indirectly,
a business in holding the stock of, or managing or controlling,
anks, banking associations, savings banks, or trust companies
within the moaning of section 2(c) of the Banking Act of 1933, as
.!lnended; and, accordingly, Texas Gulf Industries, Inc., is not
aeemed to be a holding company affiliate except for the purposes
of section 23A of the Federal Reserve Act, and does not need a
v°tin,7, permit from the Board of Governors in order to vote the bank
stock which jt owns.
V
HOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Mr. Robert C. Lanier
If, however, the facts should at any time differ from those
set out above to an extent which would indicate that Texas Gulf
Industries, Inc., might be deemed to be so engaged, this matter should
again be submitted to the Board. The Board reserves the right to
rescind this debermination and make a further determination of this
matter at any time on the basis of the then existing facts.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2447
2448
8
9/8/58
Item No.
Memorandum of a meeting of the available members of the Board of
Governors of the Federal Reserve System which was held in the Special
Library on Friday, August 29, 1958, at 10:00 a.m.
PRESENT:
Mr. Martin, Chairman
Mr. Shepardson
Mr.
Mr.
Mr.
Mt.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Kenyon, Assistant Secretary
Fauver, Assistant Secretary
Riefler, Assistant to the Chairman
Leonard, Director, Division of Bank Operations
Young, Director, Division of Research and
Statistics
Hackley, General Counsel
Solomon, Assistant General Counsel
Chase, Assistant General Counsel
Hostrup, Assistant Director, Division of
Examinations
Nelson, Assistant Director, Division of
Examinations
Huning, Review Examiner, Division of
Examinations
Items circulated or distributed to the Board.
In accordance
with the procedure agreed upon at the meeting of the Board on August 20,
1958, the following items, which had been circulated or distributed to
the available members of the Board and copies of which are attached
hereto under the respective item numbers indicated, were approved
unanimously by the members of the Board present, subject to ratification
Of the respective actions at such time as a quorum of the Board was present:
Item No.
Letter to the Federal
the view that section
not prevent directors
banks from serving as
trust investment fund
aries' Fund,
Inc.
Reserve Bank of Boston expressing
32 of the Banking Act of 1933 would
and officers of participating member
directors and officers of a mutual
to be known as Connecticut Fiduci-
M-18
2449
8/29/58
-2Item No.
Letter to The Trust Company of New Jersey,
Jersey City, New Jersey, approving an investment in bank premises. (For transmittal through
the Federal Reserve Bank of New York)
M-19
Letter to the Citizens-Union Bank & Trust Company,
Lexington, Kentucky, approving the application for
fiduciary powers submitted on behalf of CitizensUnion National Bank & Trust Company, Lexington,
Kentucky, into which the State bank is to be
converted. (For transmittal through the Federal
Reserve Bank of Cleveland)
M-20
Telegrams to the Federal Reserve Agent at Atlanta
authorizing the issuance of general voting permits
to Citizens and Southern Holding Company and The
Citizens and Southern National Bank, both of
Savannah, Georgia, covering their stock in The
Augusta Citizens and Southern National Bank,
Augusta, Georgia.
Letter to the Federal Reserve Bank of Minneapolis
M-21 and M-22
M-23
approving the furnishing of future reports of
examination of Montana Bank, Great Falls, Montana,
to Firstamerica Corporation, San Francisco,
California.
Letter to the First State Bank, Odessa, Texas,
m-24
aPproving its application for fiduciary powers.
(For transmittal through the Federal Reserve Bank
of Dallas)
Letter to the Comptroller of the Currency recommending unfavorably with regard to an application
tO organize a national bank at Fort Myers Beach,
Florida. (With a copy to the Federal Reserve Bank
Of Atlanta)
M-25
Order granting Otto Bremer Company additional time
within which to submit proposed findings, conclusions
and supporting brief.
m-26
Letter to the Federal Reserve Agent at St. Louis
approving the appointment of Ewell M. Coleman, Jr.,
as a full-time Alternate Assistant Federal Reserve
Agent.
M-27
2450
8/29/58
-3Item No.
14-28
Letter to the Federal Reserve Agent at St. Louis
approving the appointment of Walter F. Davisson
as an additional Assistant Federal Reserve Agent.
Return to Treasury of Section 13b advances (Item No. M-29).
Prior to the meeting there had been distributed to the members of the
Board a memorandum dated August 27 from Mr. Daniels, Assistant Director,
Division of Bank Operations, outlining a recommended procedure by which
the Federal Reserve Banks would return to the Treasury Department funds
Which they had heretofore received under Section 13b of the Federal
Reserve Act.
The return of such funds was required by the Small Business
Investment Act of 1958 which became law on August 21, 1958.
Section 602(a)
Of that Act provided that within 60 days after the enactment of the Act
each Federal Reserve Bank should pay to the United States the aggregate
amount which the Secretary of the Treasury had heretofore paid to such
Bank under the provisions of Section 13b of-the Federal Reserve Act.
The memorandum pointed out that the amounts received from the
Treasury by the Reserve Banks and now to be repaid totaled $27,546,310.97,
Which was $3,657.47 more than Section 13b Surplus.
Section 13b Surplus
consisted of advances received from the Treasury plus net earnings
derived from the use of Treasury funds and less net losses from the
use of such funds.
Six banks had more than enough in their Section 13b
surplus accounts to repay the amounts due the Treasury while six
Other Reserve Banks had deficiencies which would be made up by drawing
2451_
8/29/58
On Section 7 Surplus funds.
The memorandum recommended advising the
Reserve Banks by telegram of the procedure suggested for the repayment
Of these funds to the Treasury Department and at this meeting Mr. Leonard
Proposed September 2 as the payment date if the Board should act today.
Mr. Leonard reviewed the provisions of the Small Business
Investment Act and the suggested procedure, following which there was
unanimous agreement to approve the sending of a telegram to the Presidents
Of all Reserve Banks in the form attached to these minutes as Item No. M-29.
Suggested topics for discussion with Federal Advisory Council
Item No. M-30 . Prior to the meeting there had been distributed a
Proposed letter to Mr. Korsvik, Assistant Secretary of the Federal
Advisory Council, suggesting a number of topics to be placed on the
agenda of the Federal Advisory Council for discussion at its meeting
on Monday, September 15, and at the joint meeting of the Council and
the Board on Tuesday, September 16.
Governor Shepardson suggested a
clarification in the wording of the second suggested item and with this
change the letter was unanimously approved in the form attached to these
minutes as Item No. M-30.
Denver Branch building (Item No. M-31).
Mr. Kenyon reported
to the Board that a letter dated August 25 had been received from Mr.
Aksel Nielsen, Chairman of the Board of the Denver Branch of the Federal
Reserve Bank of Kansas City, in reply to Chairman Martin's telephone call
and letter following the discussion at the Board meeting on August 20.
At that meeting it had been understood that the Denver Board would be
8/29/58
given a further opportunity to express its views regarding the building
Program for the Denver Branch if that Board should so desire.
It had
been understood that if the Branch Board wished it could come to
Washington and review the various proposals with the Board of Governors.
Mr. Nielsen's letter expressed appreciation for the invitation
to discuss further the matter of the site selection in Denver but expressed
the view that
the Denver Board felt that all aspects of the matter had been
fullY discussed and that there would be no point in a further meeting in
Washington.
In the light of this reply and of the Board's previous understanding on August 20, the sending of the telegram attached to these
minutes as Item No. M-31 was approved, increasing the aggregate purchase
price for the proposed new building site for the Denver Branch to a
maximum of $750,000 plus $35,000 real estate fee instead of the maximum
of $700,000 plus $351000 real estate fee which was authorized in the
Board's telegram of April 4, 1958.
The Michigan Bank
approval of branches.
Mr. Kenyon then advised
the Board
that a letter dated August 27 had been received from Mr. John C.
Ray, President of The Michigan Bank, Detroit, Michigan, concerning the
13(palld's letter of August 20 which had approved the establishment of two
new branch
offices in Detroit by The Michigan Bank provided that, prior
t
hereto, an additional million dollars of capital was raised through the
sale of common stock.
M. Hay's letter requested a meeting with a member
8/29/58
-6-
or members of the Board in order to have a full discussion of the
condition imposed.
It stated that if such a meeting could be arranged
The Michigan Bank would be represented by Mr. Hay, Mr. Howard J. Stoddard,
and its attorney, Mr. James B. Alley.
Mr. Kenyon also stated that a letter dated August 26 had been
received from the Federal Reserve Bank of Chicago enclosing a memorandum
Of a conversation between President Allen and Mr. Stoddard of The Michigan
Bank regarding the condition under which the two new branches were approved
and also regarding one of the conditions of membership imposed when the
bank joined the Federal Reserve System.
The suggestion was made that a meeting be arranged on Thursday
or Friday, September
4 or 5, between the representatives of The Michigan
Bank and the members of the Board available at that time.
There was
Unanimous agreement with this suggestion and the Secretary's Office was
authorized to arrange such a meeting.
Jacksonville Branch matter.
Mr. Leonard advised the Board that
President
Bryan of the Federal Reserve Bank of Atlanta had forwarded to
the Board a complete report on the Jacksonville Branch matter involving
aZ1 employee of the bank and a television program which awarded prizes for
dollar bills with certain specified serial numbers.
As reported to the
Board on
August 18 the prize money received for the bill, which had not
entered circulation, had been returned by the employee's wife.
It was
2454
8/29/58
-7-
indicated that the full report would be circulated to the members of
the Board as a, matter of information.
Thereupon the meeting adjourned.
Assis ant Secretary
2455
BOARD OF GOVERNORS
OF THE
Item No. M-18
8/29/58
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
August 291 1958
Mr. Benjamin F. Groot, Vice President,
Fedeml Reserve Bank of Boston,
Boston 6, Massachusetts.
Dear Mr. Groot:
Reference is made to your letter of August 13, 1958, and
e nclosures relating to a mutual trust investment fund to be known as
C
onnecticut Fiduciaries' Fund, Inc., which is being incorporated under
he provisions of a statute of the State of Connecticut. The question
is whether directors and officers of participating member banks may
serve as directors and officers of the Fund, in view of the provisions
of section 32 of the Banking Act of 1933.
Briefly, the statute authorizes the incorporation of "a mutual
trust investment company as a medium for the common investment of funds
and Property held by state banks and trust companies and national banks
r.th trust powers located in [Connecticut] acting as executor, adminisator, guardian, trustee or conservator, either alone or with one or
TOre individual co-fiduciaries," and restricts the ownership of the
b'und's shares to such fiduciaries in their capacities as such. The
statute authorizes the bank commissioner to examine the Fund, to require
the Fund to make special reports, and to remove directors and officers
?F the Fund for violations of law and continued unsafe and unsound pracLices in conducting the business of the Fund. The assets of the Fund
IrlaY be invested only in assets which are legal investments for trustees
Inder State law. There are appropriate limitations on the amount which
faY be invested in any one corporation, and on the amount of any one
'rust which may be represented by shares of the Fund.
T
From the information presented, the Board understands that the
fld will receive only funds of trusts created or used "for bona fide
QUciary purposes"; that no shares of the Fund may be purchased by any
0
1-ns Litution which operates its own common trust fund; that the Fund
drdinarily will permit the purchase and redemption of shares only on one
during each quarter of the year on the basis of valuations prepared
'flly once each quarter.
It is further understood that the Fund's board of directors
will ,
1-0 composed of one member from each participating bank or trust
e°111PanY; that no director or officer of the Fund will receive any
BOArAID
OF CiOVERNORS
or
THE FEDERAL RESERVE SYSTEM
2456
Ur. Benjamin F. Groot
-2-
compensation from the Fund; that a bank will be selected by the Fund
as its custodian and investment manager, which bank will have no represetation on the Fund's hoard of directors; that the Fund will have no
Paid employees, will employ no sales personnel, will undertake no active
sales campaign, will impose no sales or loading charges in connection
with the issuance or sale of its shares (except initially a 2-1/2 cent
charge per share to recover organizational expenses estimated at $5000).
The Board also understands that the Fund will not engage in
the issue, flotation, underwriting, public sale or distribution, at
Wholesale or retail, or through syndicate participation, of any stocks,
bonds or other similar securities, except the issue and sale of shares
Of its own stock.
There appears to be no substantial difference, as far as
section 32 is concerned, between this proposed Fund and the fund organized under New York law which was the subject of the Board's letter of
uecember 22, 1954, to Mr. Phelan, Vice President, Federal Reserve Bank
Of New York, and therefore, on the basis of the information presented,
the Board is
of the view that interlocking relations between the Fund
and member banks would not be prohibited by section 32.
You will understand, of course, that the Board's view, as
!xPressed above, is based upon the facts and circumstances peculiar
to this
case and mould not necessarily be applicable to other cases
Where the facts might be somewhat similar or to this case if there
should be any material change in the facts.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
to sop*
OF , THE
Item No. M-19
8/29/58
FEDERAL RESERVE SYSTEM
* .4„
WASHINGTON 25, 0, C.
A
ADDRESS
arriatm.. CORRESPONDENCE
TO THE BOARD
441ast /
''0440,0
fttt
August 29, 1958
Board of Directors,
The Trust Company of Neu jersey,
Jersey City, New Jersey.
Gentlemen:
,
Pursuant to your request submitted through the
Federal Reserve Bank of New York, the Board of Governors
approves, under the provisions of Section 2LA of the Federal
Reserve Act, an additional investment of $75,000 in bank
Premises.. This expenditure is to pay for refurbishing the
bank l a main office and two branches.-
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2458
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. M-20
8/29/58
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
August 29, 1958
Board of Directors,
Citizens-Union Bank & Trust Company,
Lexington, Kentucky.
G
entlemen:
The Board of Governors of the Federal Reserve System has
given consideration to the application for permission to exercise
fiduciary powers made by you on behalf of the Citizens Union
National Bank & Trust Company, Lexington, Lexington, Kentucky, the
lilational bank into which the Citizens-Union Bank & Trust Company,
Lexington, hentucky, is to be converted, and grants such national
bank authority, effective if and when it is authorized by the
Comptroller of the Currency to commence business, to act, when
not in
contravention of State or local law, as trustee, executor,
administrator, registrar of stocks and bonds, guardian of estates,
assignee, receiwr, committee of estates of lunatics, or in any
other fiduciary capacity in which State banks, trust companies,
°r other corporations which come into competition with national
banks are
permitted to act under the laws of the State of
IkentuckY. The exercise of such rights shall be subject to the
P,I'ovisions of Section 11(k) of the Federal Reserve Act and
1legu1ati0n F of the Board of Governors of the Federal Reserve
SYstem,
After the conversion becomes effective and the Comptroller
°f the Currency authorizes the national bank to commence business,
Y",ou are requested to have the board of directors of the national
.,ank adopt a resolution ratifying your application for permission
exercise fiduciary powers, and a certified copy of the resolution
adopted should be forwarded to the Federal Reserve Bank of
eveland for transmittal to the Board for its records. When a
°IV' of such resolution has been received by the Board, a formal
.!!tificate covering the national bank's authority to exercise
ic
"ust powers will be forwarded.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
TELEGRAM
LEASED WIRE SERVICE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
Item NO. M-21
8/29/58
August 29, 1958
1!ITCH6LL - ATLANTA
KaJE
A. Citizens and Southern Holding Company, Savannah, Georgia.
B. The Augusta Citizens and Southern National Bank, Augusta, Georgia.
C. (1) Prior to issuance of general voting permit authorized herein,
applicant shall execute and deliver to you in duplicate an agreement in form accompanying Board's letter S-964 (FALS #7190); and
(2) simultaneously with issuance of general voting permit authorized
herein, there shall be issued to The Citizens and Southern National
Bank, Savannah, Georgia, the general voting permit authorized in
Boardls telegram of this date.
(Signed) Kenneth A. Kenyon
KENYON
KEBJE - The Board 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 "A", entitling such organization to vote the
stock 'which it owns or controls of the bank(s) named below
after the letter "B" at all meetings of shareholders of such
bank(a), subject to the condition(s) stated below after the
letter "C". 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 101 1947, (S-964).
24.60
TELEGRAM
LEASED WIRE SERVICE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
It
NO. 14-22
8/29/58
August 29, 1958
N.ITCI-ELL - ATLANTA
ICEBJE
A. The Citizens
and Southern National Bank, Savannah, Georgia.
B. The
Augusta Citizens and Southern National Bank, Augusta, Georgia.
C.
(1) Prior to issuance of general voting permit authorized herein,
applicant shall execute and deliver to you in duplicate an agreement in form accompanying Board's letter S-964 (FRLS #7190), except
that paragraph numbered 3 shall be modified in manner stated in
Paragraph numbered (3) of S-964; and (2) simultaneously with issuance of general voting permit authorized herein, there shall
be issued to Citizens and Southern Holding Company, Savannah,
Georgia, the general voting permit authorized in Board's telegram
of this date.
(Signed) Kenneth A. Kenyon
KENYON
KEIBJP - The Board 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 "el entitling such organization to vote the
stock which it owns or controls of the bank(s) named below
after the letter "B" at all meetings of shareholders of such
bank(s), subject to the condition(s) stated below after the
letter "C". 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, (S-964).
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
Item No. M-23
8/29/58
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
August 29, 1958
Mr, H.
G. McConnell, Vice President,
Federal Reserve Bank of Minneapolis,
Minneapolis 2,
Minnesota.
Dear Mr. McConnell:
This refers to your letter of AUgust 12, 1958, with
hich there were transmitted copies of a letter dated August 7,
ir58, from Mr. E. R. Millard, Vice President of the Federal
,?serve Bank of San Francisco, and a resolution of the Board of
y -rectors of Montana Bank, Great Falls, Montana, authorizing any
',4
rederal Reserve Bank to transmit copies of all future reports of
examlnation to Firstamerica Corporation, San Francisco, California.
In view of the fact that Firstamerica Corporation is the
company affiliate of Montana Bank, the furnishing of future
reports of examination of that bank to Firstamerica Corporation is
approved pursuant to paragraph 8, section 9, of the Federal Reserve
Act
, and applicable provisions of the Board's Rules of Organization,
e
'
trovided
that it is understood by representatives of the holding
°/nParlY affiliate that information obtained from examination rePeorts of
Montana Bank is subject to the same restrictions and
_onditions as to recall, use, disclosure, or publication, as those
which govern the copies of reports furnished to State member banks
Pursut to Form F.R. 410-45-Receipt.
holdi ,,
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2462
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. M-24
8/29/58
WASHINGTON 25. D. C
OrFICIAL CURNE.51
Tr) THE aL)AWL)
August 29, 1958
Board of Directors,
First State Bank,
Odessa, Texas.
Gentlemen:
This refers to your request for permission, under
applicable provisions of your condition Of membership
numbered 1 to exercise fiduciary powers.
Following consideration of the information sub—
mitted, the Board of Governors Of the Federal Reserve
System grants permission to First State Bank to. exercise
the fiduciary powers now or hereafter authorizedunder
the terms of its Articles of Association and the laws of
the State 'of Texas.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
D(NCE
oc.
BOARD OF GOVERNORS
,r
OF THE
1 00y0
1
).y, (
C. %
Item No. M-25
8/29/58
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
4o:33A*
August 291 1958
Comptroller of the Currency,
Treasury Department,
Washington 251 D. C.
Attention Mr. W. M. Taylor,
Deputy Comptroller of the Currency.
Dear Mr. Comptroller:
Reference is made to a letter from your office dated
March 19, 1958, enclosing copies of an application to organize a
national bank at Fort Myers Beach, Florida, and requesting a recommendation as to whether or not the application should be approved.
A report of investigation of the application made by an
examiner for the Federal Reserve Bank of Atlanta indicates that the
organizers plan to provide a capital structure of $300,000 for the
bank instead of $150,000 as shown in the application. This revised
capital structure would be adequate. However, it appears that the
prospects for profitable operations of the bank are poor and there
le not sufficient need for it at this time. The management factor
cannot be evaluated satisfactorily inasmuch as the managing officers
have not been selected and the proposed directors have had little or
110 banking experience. In view of the unfavorable factors in this
eltuation, the Board of Governors does not feel justified in recommending approval of the application.
The Board's Division of Examinations will be glad to
discuss any aspects of this case with representatives of your office
if you so desire.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2464
UNITED STATES OF AMERICA
VE SYSTEM
BEFORE THE BOARD OF GOVERNORS OF ThE FEDERAL RESER
Item No. M-26
8/29/58
WASHINGTON, D. C.
In the Matter of the Applications of
DOCKET NOS.
BHC-29, 31-33, 35
' OTTO BREMER COMPANY
' Pursuant to section 4(0)(6) of the
' Bank Holding Company Act of 1956
ORDER EXTENDING TILE WITHIN V;HICH APPLICANT
NGS
MAY SUBMIT TO HEARING EXAIiINER PROPOSED FINDI
AND CONCLUSIONS, AND SUPPORTING BRIEF
Applicants
Additional time having been requested by the
ner
Otto Bremer Company, within which to submit to the Hearing Exami
brief, and it
Proposed findings and conclusions, and supporting
be granted, it is
appearing to the Board that such request should
may file
hereby ORDERED that the time within which the Applicant
brief, be)
such proposed findings and conclusions, and supporting
and the same hereby is, extended to and including October 15, 1958.
This 29th day of August, 1958.
By order of the Board of Governors.
Kenneth A. Kenyon,
Assistant Secretary.
(SEAL)
Washington, D. C.
August 29) 1958.
246
•
BOARD OF GOVERNORS
OF THE
eowsoli°
**
*
FEDERAL RESERVE SYSTEM
1}
Item No. M-27
8/29/58
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
Ark. tatt
'
40044.*
August 29, 1958
Mr. Pierre B. McBride,
Federal Reserve Agent,
Federal Reserve Bank of St. Louis,
St. Louis 66, Missouri.
Dear Mr. McBride:
In accordance with the request contained in your letter of
Au.gust 15, 1958, the Board of Governors approves the appointment of
Mr. Ewell M. Coleman, Jr. as full-time Alternate Assistant Federal
Reserve Agent at the Federal Reserve Bank of St. Louis, effective
September 2, 1958) to succeed Edward A. Zehner.
This approval is given with the understanding that Lr. Coleman
will be solely responsible to the Federal Reserve Agent and the Board of
Governors for the proper performance of his duties, .except that, during
the absence or disability of the Federal Reserve Agent or a vacancy in
that office, his responsibility will be to the Assistant Federal Reserve
Agent and the Board of Governors.
When not engaged in the performance of his duties as Alternate
Assistant Federal Reserve Agent Mr. Coleman may, with the approval of
the Federal Reserve Agent and the President, perform such work for the
Bank as will not be inconsistent with his duties as Alternate Assistant
Federal Reserve Agent.
It will be appreciated if Mr. Coleman is fully informed of
the importance of his responsibilities as a member of the staff of the
Federal Reserve Agent and the need for maintenance of independence from
the operations of the Bank in the discharge of these responsibilities.
It is noted from your letter that, upon the approval of the
appointment of Mr. Coleman by the Board of Governors, he will execute
the usual oath of office which will be forwarded to the Board of lovernors.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
,)
24r
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
.
Item No. M-26
8/29/56
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO TN( BOARD
August 29, 1958
Mr. Pierre B. McBride,
Federal Reserve Agent,
Federal Reserve Bank of St. Louis,
St. Louis 66, Missouri.
Dear Mr. McBride:
In compliance with the request contained in your letter of
August 15, 1958, the Doard of Governors approves the appointment of
Mr. Walter F. Davisson as an additional Assistant Federal Reserve
Agent at the Federal Reserve Bank of St. Louis, effective September 2,
1958.
This approval is given with the understanding that
Mr. Davisson will be solely responsible to the Federal Reserve Agent
and the Board of Governors for the proper performance of his duties,
except that, during the absence or disability of the Federal Reserve
Agent or a vacancy in that Office, his responsibility will be to the
Board of Governors.
'Alen not engaged in the performance of his duties as Assistant
Federal Reserve Agent hr. Davisson may, with the approval of the Federal
Reserve Agent and the President, perform such work for the Bank as will
not be inconsistent with his duties as Assistant Federal Reserve Agent.
It will be appreciated if Mr. Davisson is fully informed of
the importance of his responsibilities as a member of the staff of the
Federal Reserve A;ent and the need for maintenance of independence from
the operations of the Bank in the discharge of these responsibilities.
It is noted from your letter that, upon the approval of the
appointment of Mr. Davisson by the Board of Governors, he will execute
the usual oath of office which will be forwarded to the Board of Governors.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
TELEGRAM
LEASED WIRE SERVICE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
Item No. M-29
8/29/58
August 29, 1958
TO T!
PRESIDENTS OF ALL FEDERAL RESERVE BANES
Section 602 of the Small Business Investment Act of 1958, approved
August 21, 1958, provides in part that within sixty days after the
onactment of the Act, each Federal Preserve Bank shall pay to the
United States the aggregate amount which the Decretary of the Treasury
has heretofore paid to such Bank under the provisions of Section 13b
of the Federal Reserve Act.
Pursuant thereto, your Bank is requested to make such payment
in the amount shown below on September 2 by credit to the Treasurer's
nel'al Account as "repayment of advances under Section 13b, F. R. Act".
ll'oasury. requests that
CD Forn 219 be used, filling in designated
131°041 as follows and sending extra copy to Treasury, Investment
Branch, Bureau of Accounts, Washington, D. C.
Block Number 1 - 9,000
Block Number 2
Washington, D. C.
syMbol 205,520
Block Number
4 - Account
Block Number
6 - Investment
Branch,
Bureau of Accounts,
Washington, D. Co
TELEGRAM
LEASED
WIRE SERVICE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
TO THE PRESIDENTS OF AIL FEDERAL RESERVE BANKS ... Page 2
$2,8752115.98
Boston
Chicago
$1,417,701.33
New York
7,7520044.63
St. Louis
Philadelphia
14198,400.60
Minneapolis
1,007,746.96
Cleveland
3.0015,57,1.33
Kansas City
1,145,717.73
Richs;Iond
3,420,662.05
Dallas
1,251,788.08
San Francisco
2,156,795.01
Atlanta
756,934.44
547,632.83
In making the payment to the Treasurys Section 13b surplus
should be closed out and the difference between the payment and the
Present balance in Section 13b surplus charged or credited direct to
Section 7 surplus. After the payment, "Surplus (Section 13b)“ will
be eliminated from the fourth page of the Board's published condition
statements of the Federal Reserve
Ranks (H.b.1(c)) and the remaining
surplus account will be entitled '
,Surplus', instead of'
,Surplus
(Section 7)”. On the combined statement, the two surplus stubs will
remain unchanged for one week, thus showing the $27 million decrease
in Section 13b Surplus in the second and third columns, after which
Only
w111 appear and the year-ago comparison footnoted for
an appropriate period.
(Signed) Kenneth A. Kenyon
KENYON
2469
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. M-30
8/29/58
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE HOARD
August 29, 1958.
Mr. William J. Korsvik, Assistant Secretary,
Federal Advisory Council,
C/O The First National Bank of Chicago,
P. 0. Box A,
Chicago 90, Illinois.
Dear Mr. Korsvik:
In response to the request contained in your letter of
August 21, 1958, the Board of Governors would like to suggest that
the following topics be placed on the agenda of the Federal Advisory
Council for discussion at its meeting on Monday, September 15 and at
the joint meeting of the Council and the Board on Tuesday,
September 16.
1. What are the views of the Council regarding (a) the
current business situation, and (b) prospects for the next six months?
Does the Council find the evidences of business recovery general or
confined to a relatively few sectors or areas?
2. Comment in the financial, real estate, and other press
suggests a mounting public concern about inflation, especially about
longer run loss of purchasing power of the dollar. How widespread is
the feeling that further inflation is inevitable? Does the Council
feel that a developing inflationary psychology is a threat to sustainable recovery? If so, what steps might best be taken to counter this
Psychology?
3. What influences account for the very rapid rate of
increase in time deposits at commercial banks? Are there any indications that this rate of increase may be slowing down?
4. What are the Council's views as to an appropriate credit
Policy between now and the next meeting of the Federal Advisory Council?
5. Would the Council care to express any views with regard
to the status of the commercial bank emergency preparedness program
and how that program might best be encouraged?
Sincerely yotrs,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2470
TELEGRAM
LEASED
WIRE SERVICE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
Item No. M-31
8/29/58
August 29 1958
rAecky
sas City
Reuriet of August 150 1958 concerning proposed new
building site for the Denver Branch
Board approves increase in
aggregate purchase price to maximum of $750,000 plus $35 000
real estate fee, instead of maximun of $700,000 plus !.:352000
real estate fee as authorized in Board telegram of April 4, 1958.
(Signed) Kenneth A. Kenyon
Kenyon
471
Item No. 4
9/8/58
Memorandum of a meeting of the available members of the Board of
Governors of the Federal Reserve System which was held in the Special
Library on Thursday, September 4, 1958, at 10:00 a.m.
PRESENT:
Mr. Szymczak, Acting Chairman
Mr. Robertson
Mr. Shepardson
Kenyon, Assistant Secretary
Hackley, General Counsel
Masters, Director, Division of Examinations
Conkling, Assistant Director, Division of
Bank Operations
Mr. Solomon, Assistant General Counsel
Mr. Nelson, Assistant Director, Division of
Examinations
Mr. Hooff, Assistant Counsel
Mr.
Mr.
Mr.
Mr.
Item circulated to the Board.
In accordance with the procedure
agreed upon at the meeting of the Board on August 20, 1958, the following
items) which had been circulated to the avilable members of the Board
and copies of which are attached hereto under the respective item numbers
indicated, were approved unanimously by the members of the Board present,
subject to ratification of the respective actions at such time as a
quorum of the Board was present:
Item No.
Letter to the Fidelity Trust Company, Pittsburgh,
Pennsylvania, consenting to its proposed merger
4th the Potter Bank and Trust Company and approving
the establishment of two branches in Pittsburgh
incident to the merger. (For transmittal through
the Federal Reserve Bank of Cleveland)
M-32
Letter to the Bank of the Commonwealth, Detroit,
14-33
Michigan, approving the establishment of a branch
at 300-316 West Fort Street. (For transmittal
through the Federal Reserve Bank of Chicago)
2472
9/4/58
-2Item No.
Letter to the Bank of Commonwealth, Detroit,
Michigan, approving the relocation of an intown branch from 5900 Chene Street to 5360
Chene Street. (For transmittal through the
Federal Reserve Bank of Chicago)
M-34
Letter to the Central Bank, Grand Rapids,
Michigan, approving the establishment of
three in-town branches. (For transmittal
through the Federal Reserve Bank of Chicago)
m-35
Letter to the California Bank, Los Angeles,
California, approving an extension of time
vithin which to establish a branch near the
intersection of La Brea Avenue and Rodeo Road
in Los Angeles. (For transmittal through the
Federal Reserve Bank of San Francisco)
M-36
Letter to the Union Bank, Los Angeles, California,
granting an extension of time within which to
establish a branch in the Toluca Lake area of
Los Angeles. (For transmittal through the
Federal Reserve Bank of San Francisco)
M-37
Letter to the Presidents of all Federal Reserve
Banks advising that submission to the Board of
the following schedules may be discontinued:
Bankers' Acceptances Purchased, BD-7; U.S.
Securities Purchased, S-2; and Municipal Warrants
Purchased.
Ff-38
Mr. Conkling then withdrew from the meeting.
Matters involving The Michigan Bank.
Pursuant to the understanding
at the meeting on Friday, August 29, arrangements had been made for a
meeting of the available Board members with representatives of The Michigan
Bank, Detroit, Michigan, tomorrow at 10:30 a.m. for the purpose of allowing
the latter to present their views with respect to the condition imposed by
the Board in connection with its approval of the bank's application to
9/4/58
_3..
establish two specified in-town branches.
This condition provided that
Prior to the establishment of the branches The Michigan Bank would increase
its capital structure by the sale of not less than $1,000,000 of additional
common stock.
The discussions and other developments which preceded the Board's
action on the branch applications were reviewed by members of the staff,
f°110wing which it was understood that at the meeting tomorrow the members
Of the Board present would listen to such statements as might be made by
the representatives of The Michigan Bank and that further consideration
of the matter would then be deferred pending the availability of the
Other members of the Board.
Advice also had been received by a member of the Board's staff
from counsel for The Michigan Bank, Mr. James B. Alley, that at tomorrow's
following
meeting Mr. Alley and his associates would like to discuss the
condition of membership which the bank accepted when admitted to memberShip in the Federal Reserve System in 1956:
"None of the bank's stock shall be held or owned, directly or
indirectly, by The Michigan Bank's proposed employees' profitsharing retirement trust if such trust is established."
The reasons for the imposition of this special condition of
membership were reviewed and discussed informally at some length, following
Ithich it was agreed that the views of The Michigan Bank would be received
t°morrow and that the matter then would receive further consideration by
the Board of Governors.
9/4/58
The meeting then adjourned.
Assistant Secretary
2475
BCJARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. M-32
9/4/58
WASHINGTON 25, 0. C.
AOOREVIEI OFFICIAL CORRESPONDENCE
TO THE BOARD
September 4, 1958
Board of Directors,
Fidelity Trust Company,
Pittsburgh 22, Pennsylvania.
Gentlemen:
Pursuant to your request submitted through the Federal
Reserve Bank of Cleveland, the Board of Governors hereby gives
its written consent, under the provisions of Section 18(c) of
the Federal Deposit Insurance Act, to the merger of the Fidelity
Trust Company with the Potter Bank and Trust Company, Pittsburgh,
Pennsylvania, under the present title and charter of the Fidelity
Trust Company, and approves the establishment of a branch by the
merged bank on Grant Street at Fifth and Forbes and a branch at
618 North Homewood Avenue, both in Pittsburgh, Pennsylvania, provided:
(a) the merger is effected substantially in accordance
with the joint plan of merger dated July 22, 1958,
(b) the transactions are effected within six months
from the date of this letter,
(c) formal approval by the State authorities is obtained
and in effect at the time the merger is effected
and the branches are established, and
(d) shares of stock acquired from dissenting shareholders
are disposed of within six months after date of acquisition.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. M.33
9/11158
WASHINGTON 25. D. C.
ADDRESS
orriciAL
CORRESPONDENCE
TO TNE BOARD
September
41 1958
Board of Directors,
Bank of the Commonwealth,
Detroit, Michigan.
Gentlemen:
Pursuant to your request submitted through the
Federal Reserve Bank of Chicago, the Board of Governors of
the Federal Reserve System amaroves the establishment of a
branch at 300-316 Vilest Fort Street, DttroLt, Michigan, by
the Bank of the Commonwealth, Detroit, Michigan, provided
the branch is established within six months from the date
of this letter, and the approval of the State authorities
la in effect as of the date of the establishment of the
branch.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant 3ecretary.
2477
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
Item No. 14-34
9/4/58
aooRcsa orricim. CORRESPONDENCE
TO THE BOARD
September 4, 1958
Board of Directors,
Bank of the Commonwealth,
Detroit, Michigan.
Gentlemen:
Pursuant to your request submitted through the
Bank of Chicago, the Board of Governors of
Reserve
Federal
the Federal Reserve System approves the relocation of the
branch presently operated by Bank of the Commonwealth at
5900 Chene Street, Detroit, Michigan, to 5360 Chene Street,
Detroit, Michigan, provided the branch is established at
the new location within one year from the date of this
letter.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2478
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No* 14-35
9/4/58
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
September 4, 1958
Board of Directors,
Central Bank,
Grand Rapids, Michigan.
Gentlemen:
Reserve
Reserve
Rapids,
each of
Pursuant to your request submitted through the Federal
Bank of Chicago, the Board of Governors of the Federal
System approves the establishment of a branch in Grand
Michigan, by Central Bank, Grand Rapids, Michigan, at
the following locations:
2002 Division Avenue, South,
1446 Grandville Avenue, S. W.,
At or near the corner of Leonard Street,
and Alpine Avenue,
N. IL,
provided the branches are established within six months from the
late of this letter, and the approval of the State authorities
Is in effect as of the date of the establishment of the branches.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Ass tstant Secretary.
`,4
24
BOARD OF GOVERNORS
4,013***44
OF THE
,4'10ci‘ovi,
FEDERAL RESERVE SYSTEM
WASHINGTON 25. O. C.
Item No. 14-36
9/4/58
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
00 ,a•
September 4, 1958
Board of Directors,
California Bank,
Los Angeles, California.
Gentlemen:
In accordance with the request submitted
through the Federal Reserve Bank of San Francisco,
the Board of Governors extends to August 111 1959,
the time within which California Bank may, under
the authority granted in the Board's letter of
October 11, 1957, establish a branch in the vicinity
of the intersection of La Brea Avenue and Rodeo
Road, Los Angeles, California.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2480
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. M-37
9/4/58
WASHINGTON 25. D. C.
AODPICIIS
orriciAL
COMOICOPONOENCE
TO THE •OARD
September
4, 1958
Board of Directors,
Union Bank,
LOS Angeles, California.
Gentlemen:
In accordance with the request submitted through
the Federal Reserve Bank of San Francisco, the Board of
Governors extenda to March 21 1_959, the time within which
Union Bank may, under the authority granted in the Board's
letter of August 30, 15570 establish a branch in the vicinity
of the intersection of Riverside Drive and Lankershim Boulevard in the Toluca Lake area of Los Angeles (North Hollywood),
California. It is noted that construction of the building,
part of which is to house this branch, will be started soon.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 15-38
9/4/58
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
September 4, 1958
Dear sir:
Submission to the Board of the following schedules called for
br the Board's letter of September 26 1922 (St. 3057) may be discon—
tinued:
Schedule of Bankers' Acceptances Purchased, BD-7
(Originally entitled: Schedule of Bills Bought
in Open Market)
Schedule of U. S. Securities Purchased, 5-2
Schedule of Municipal Warrants Purchased
Discontinuance of submission of Schedule of Bills Discounted
.(
11?,r Member Banks, BD-4, was authorized in the Board's letter of January
f
ijiv, 1956 (FRLS #3949.4), and the letter of September 26, 1922, therefore,
becomes obsolete,
Transactions giving rise to forms BD-7 and S-2 are in effect
,2
1 -Y at the Federal Reserve Bank of New York, and there have been no
t;
d1Isactions in municipal warrants for years. This letter is being sent
44211 Federal Reserve Banks, however, since the original request was
,Aressed
to all of them.
Z
To facilitate examination procedures, the Federal Reserve Bank
.v! York should continue to send current copies of form S-2 to the
/Olf
0.1\_1e
'rcus Division of Examinations.
Digitized for ID
FRASER
THE PRESIDENTS
Very truly yours,
Kenneth A. Kenyon,
Assistant Secretary.
OF ALL FEDERAL RESERVE BANKS
2482
Item No.
5
9/8/58
Memorandum of a meeting of the available members of the Board
of Governors of the Federal Reserve System which was held in the special
Library on Friday, September
PRESENT:
5, 1958, at 10:00 a.m.
Mr. Szymczak„ Acting Chairman
Mr. Robertson
Mr. Shepardson
Kenyon, Assistant Secretary
Hackley, General Counsel
Masters, Director, Division of Examinations
Solomon, Assistant General Counsel
Nelson, Assistant Director, Division of
Examinations
Mr. Hooff, Assistant Counsel
Mr.
Mr.
Mr.
Mr.
Mr.
Items circulated or distributed to the Board:
In accordance with
the procedure agreed upon at the meeting of the Board on August 20, 1958,
the following items, which had been circulated or distributed to the
available members of the Board and copies of which are attached hereto
Under the respective item numbers indicated, were approved unanimously
7 the members of the Board present, subject to ratification of the
4
respective actions at such time as a quorum of the Board was present:
Item No.
Letter to The Hackensack Trust Company, Hackensack,
New Jersey, approving the establishment of a branch
in the vicinity of the intersection of Main Street and
Johnson Avenue. (For transmittal through the Federal
Reserve Bank of New York)
M-39
Letter to the First National Bank in Taylorville,
M-40
T Ylorville, Illinois, approving its application for
flduciary powers. (For transmittal through the Federal
Reserve Bank of Chicago)
Letter to St. Joseph Agency, Inc., South Bend, Indiana,
granting an additional extension of time for the retention by that company of its general casualty insurance
business. (With identical letters to St. Joseph Bank
?nd Trust Company and to Doran, Manion, Boynton & Kamm,
both of South Bend, Indiana, and to the Federal Reserve
Bank of Chicago)
-2-
9/5/58
with
Governor Szymczak reported
that yesterday afternoon, following the meeting of the Board of Directors
of the Federal Reserve Bank of New York, he received a telephone call
from President Hayes, who reviewed reasons underlying the decision of the
Ni York directors to reestablish a discount rate of l-3/4 per cent.
According to Mr. Hayes, the directors unanimously felt that the economy
was still vacillating, that there was not definite, clear-cut evidence
that the economy was on the way up. The directors wanted it made known
that in their opinion the current pattern of operations of the Federal
Open Market Committee was too restrictive. In other words, they did not
feel that open market operations should have gone as far as they had with
respect to the absorption of reserves. They wished to register that
opinion with the Board of Governors, and it was also understood that
Mr. Hayes would cover the matter in his comments at the meeting of the
Federal Open Market Committee on Tuesday, September 9.
At this point, Mr. Molony, Special Assistant to the Board,
entered the room.
Bank Heldiu Company- Act matters. With reference to the order
issued by the Board recently denying the application of First Bank Stock
Corporation to acquire shares of the proposed First Eastern Heights
3tate Bank, St. Paul, Minnesota, Mr. Hackley reported that yesterday
President
Colman of First Bank Stock Corporation called him on the
telephone and said that arrangements had been made under which Minnesota
2484
9/5/58
Mining and Manufacturing Company would establish a bank at the location
in question, with an option to First Bank Stock Corporation to purchase
the stock owned by Minnesota Mining and Manufacturing. First Bank
Stock then proposed to file an application under the Bank Holding
Company Act to acquire stock of the existing bank. If the Board should
turn down that application also, First Bank Stock proposed to appeal
to the courts both that order and the decision already rendered by the
Board. President Colman expressed a desire to discuss next week with
members of the Board's staff the "legal technicalities and particularly
the timing." Mr. Hackley added that the information given by Mr. Colman
previously had been outlined in substance to the Board's staff by
President Deming of the Federal Reserve Bank of Minneapolis.
Mr. Hackley noted that the time for appeal by the First National
City Bank of New York of the Board's recent order concerning applications of that bank and others under the Bank Holding Company Act would
expire next Monday. He said it seemed probable that the applicants
would file an appeal to "hold the place."
to
The applicants were understood
consider it possible that new legislation would be enacted in New York
State next year.
The meeting then recessed and reconvened at 1030 a.m. with the
same attendance
except that Mr. Molony was not present. Messrs. John C.
114Y, President of The Michigan Bank, Detroit, Michigan; Howard J. Stoddard,
a
director of the member bank; and James B. Alley, Counsel for the bank,
joined the meeting at this time.
("NA°
ric`it klk
9/5/58
-4Questions relatig to The Michigan Bank. This meeting with
Messrs. Hay, Stoddard, and Alley had been arranged in order to give
them the opportunity which they had requested
to present to the Board
their views with respect to (1) the condition of membership imposed when
The Michigan Bank was admitted to membership in the Federal Reserve System
in 1956; namely, that "none of the bank's stock shall be held or owned,
directly or indirectly, by The Michigan Bank's proposed employees' profit.
sharing retirement trust, if such trust is established," and (2) the
condition prescribed by the Board in approving recently the establishment
Of two specified in-town branches by The Michigan Bank; namely, that
prior to the establishment of the branches the bank's capital would be
increased by the sale of not less than $1,000,000 of additional common
stock.
A memorandum concerning the statements made by the representatives of The Michigan Bank and the discussion of those statements is
being placed in the Board's files.
At the conclusion of the meeting Governor Szymczak advised
the representatives of The Michigan Bank that the points they had raised
would be taken under consideration and that the matters in question
would be considered by the Board of Governors at the earliest opportunity.
The meeting then adjourned.
'"W"
.'fi2
Ze
;
c4
Assistant Secretary
248
BOARD OF GOVERNORS
istidtts1.4„,.
OF THE
4
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
Item No. I4-39
9/5/58
4 III
6
'124%0
t '4
'
44,4
ADDRESS OFFICIAL CORRESPONDENCE
TO 71-4E BOARD
't?4,
-004**4
September 5, 1958
Board of Directors,
The Hackensack Trust Company,
Hackensack, New Jersey.
Gentlemen:
Pursuant to your request submitted through the
Federal Reserve Bank of New York, the Board of Governors
approves the establishment of a branch in the vicinity of
the intersection of Main Street and Johnson Avenue,
Hackensack, New Jersey, by The Hackensack Trust Company,
Hackensack, New Jersey. This approval is given provided
the branch is established within one year from the date of
this letter and that formal approval of State authorities
is effective at the time the branch is established.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
248
BOARD OF GOVERNORS
1),Irr
44
44
444.00a
OF THE
FEDERAL RESERVE SYSTEM
0)
'7
4:Yer
A*
Item No, 14-40
9/5/58
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
ett, `tt
o'N
D•Aao4.4''
September
5, 1958
Board of Directors,
First National Bank in Taylorville,
Taylorville, Illinois.
Gentlemen:
The Board of Governors of the Federal Reserve
System has given consideration to your application for
fiduciary powers and grants you authority to act, when
not in contravention of State or local law, as trustee,
executor, administrator, registrar of stocks and bonds,
guardian of estates, assignee, receiver, committee of
estates of lunatics, or in any other fiduciary capacity
in which State banks, trust companies or other corporations which come into competition with national banks
are permitted to act under the laws of the State of
Illinois, the exercise of all such rights to be subject
to the provisions of Section 11(k) of the Federal Reserve
Act and Regulation F of the Board of Governors of the
Federal Reserve System.
A formal certificate indicating the fiduciary
powers which First National Bank in Taylorville is now
authorized to exercise will be forwarded to you in due
course.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
'
11488
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No, H-41
9/V58
WASHINGTON 25. D. C.
ADORES!
OFFICIAL
CORRESPOND
TO THE SIMARD
September
5 1958
M. Paul M. LaMar, President,
St. Joseph Agency, Inc.*
St. Joseph Bank Building,
South Bend, Indiana.
Dear Mr. LaMar:
This refers to the applications of St. Joseph Agency,
Inc. and St. Joseph Bank and Trust Company, relating to the
oPeration of a general casualty insurance business.
In order to permit more time in which to study this
natter, and pursuant to the provisions of section 4(a) of the
Bank Holding Company Act of 1956, the Board hereby grants an
additional extension of time of 120 days from September 6 for
the retention by St. Joseph Agency, Inc. of its general casualty
insurance business.
Very truly yours,
(Signed) Kenneth A. Kenyo
Kenneth A. Kenyon,
Assistant Secretary.
NEC
2489
BOARD OF GOVERNORS
'to401,4,,o,i,,
OF THE
Item No. 6
FEDERAL RESERVE SYSTEM
A **
9/8/58
WASHINGTON 25, D. C.
0
0
0
ADDRESS OFTICIAL CORRESPONDENCE
TO THE BOARD
:tt°
ft:it NIZ06
August 27, 1958
Mr. Robert C. Goodwin, Director,
Bureau of Employment Security,
110 S. Department of Labor,
Washington 25, D. C.
kttention:
UCFE
Dear Mr. Goodwin:
Pursuant to Section 609.9 of your regulations
implementing the provisions of Public Law 767) Eighty—
third Congress, Second Session, the Board of Governors
of the Federal Reserve System has designated Mr. Harold
L. Emerson of the Division of Personnel Administration
to succeed Mr. John B. Bazuin as its liaison with your
agency in connection with the administration of the
Federal employee unemployment compensation program.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
249(t
BOARD OF GOVERNORS
Item No.
OF THE
7
9/8/58
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
August 28, 1958
Mr. John F. Pierce, Chief Examiner,
Federal Reserve Bank of New York,
New York 45, New York.
Dear Mr. Pierce:
In accordance with the request contained in
your letter of August 26, 1958, the Board approves
the
designation of John T. Seguin as a special examiner
.for the Federal Reserve Bank of New York effecti
ve
August 28, 1958.
The original appointment of Mr. Seguin as an
examiner for the Federal Reserve Bank of New York has
been cancelled as of August 28, 1958.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
Item No. 8
OF THE
aa
a
9/8/58
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRCII•
orricim. CORIRESPONDENCE
TO THE BOARD
August 29, 1958
CONFIDENTIAL (FR)
Mr. H. H. Kimball, Vice President,
Federal Reserve Bank of New York,
New York 45, New York.
Dear Mr. Kimball:
In accordance with the request contained in your letter
of August 26, 190, the Board approves the appointment of
Clifford H. Guion as an assistant examiner for the Federal Reserve
Bank of New York. Please advise as to the date upon which the
appointment is made effective.
It is noted that Ni. Guion is indebted to the Rockland
National Bank, Suffern, Suffern, New York, in the amount of
$518.70 for home improvements and $1,104.77 for the purchase of a
car, and to The First National Bank of Jersey City, Jersey City,
New Jersey, in the amount of $101200 secured by a mortgage on his
home. Accordingly, the Board's approval of the appointment of
Mr. Guion is given with the understanding that he will not participate in an examination of either of the above national banks
until his indebtedness has been liquidated.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2492
BOARD OF GOVERNORS
OF THE
Item No. 9
FEDERAL RESERVE SYSTEM
9/8/58
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
September 2, 1958
Mr. John L. Nosker, Assistant Vice President,
Federal Reserve Bank of Richmond,
Richmond 13, Virginia.
Dear Mr. Nosker:
In accordance with the request contained in
your letter of August 27, 1958, the Board approves the
designation of Harold M. Scott as a special assistant
examiner for the Federal Reserve Bank of Richmond for
the purpose of participating in examinations of all
State member banks except The Bank of Virginia,
Richmond, Virginia.
The authorization heretofore given your
bank to designate Mr. Scott as a special assistant
examiner is hereby cancelled.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
24.9%)
TELEGRAM
LEASED WIRE SERVICE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
September
Item No. 10
9/8/58
3, 1958
MORRILL - SAN FRANCISCO
Reurlet August 28, 1958, Board approves appointment of
Allen F. Goodfellow as an assistant examiner for the
Federal Reserve Bank of San Francisco. Please advise
date appointment is made effective.
(Signed) Kenneth A. Kenyon
KENYON
2494
BOARD OF GOVERNORS
OF THE
'
4
"OW COI:
v‹
, 1.10t
6
FEDERAL RESERVE SYSTEM
Item No. 11
/
8
/
9
WASHINGTON 25. D. C.
e;
l
ADDRESS OFFICIAL CORRESPONDENCE
4
4'4
4
`&1,
aa
447
644 tit1:1„
TO THE BOARD
"
—004,3*.
September 4, 1958
Hi% R. B. Wiltse, Vice President,
Federal Reserve Bank of New York,
New York 45, New York.
Dear Mr. Wiltses
In accordance with the request contained in your
letter of August 291 1.958, the Board approves the appointment of Murray J. Alimo as an assistant examiner for the
Federal Reserve Bank of New York. Please advise as to the
date upon which the appointment is made effective.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
@FedFRASER