HEARINGS

BEFORE THE

COMMITTEE ON BANKING AND CURRENCY

HOUSE OF REPRESENTATIVES

EIGHTY-FIFTH CONGRESS

FIRST SESSION

ON

S. 1451 and H. R. 7026

$5275

JULY 15, 16, 17, 18, 22, 23, 24, 25, 26, 30, 31, AUGUST 1, 2, 5, 6,

7, 8, 13, 14, AND 15, 1957

PART 1

Printed for the use of the Committee on Banking and Currency

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1957

86 379ST XL

09/92 53-005-00

263

COMMITTEE ON BANKING AND CURRENCY

BRENT SPENCE, Kentucky, Chairman

ROBERT L. CARDON, Clerk and General Counsel

JOHN E. BARRIERE, Majority Staff Member

ORMAN S. FINK, Minority Staff Member

CONTENTS

Summary of amendments made by Financial Institutions Act (S. 1451

and H. R. 7026).......

Title I. National Bank Act.

Title II. Federal Reserve Act..

Title III. Federal Deposit Insurance Act.

Title IV. Federal Home Loan Bank Act..

Title V. Federal Savings and Loan Association Act....

Title VI. Federal Savings and Loan Insurance Corporation Act--

Title VII. Federal Credit Union Act..

Title VIII. Miscellaneous amendments.

Statement of-

Cook, Hon. H. E., Chairman, Board of Directors, Federal Deposit

Insurance Corporation, accompanied by Royal L. Coburn, General

Counsel.

Page

1

1

6

9

12

14

15

16

17

705, 749, 784

Gidney, Hon. Ray M., Comptroller of the Currency; accompanied by

L. A. Jennings, Deputy Comptroller; Roy T. Englert, and George

E. McConley, Legal Division....

191, 227, 257, 329, 577,

Hansen, Hon. Victor R., Assistant Attorney General, Antitrust Divi-

sion, Department of Justice; accompanied by Robert A. Bicks, First

Assistant..

Martin, Hon. William McC., Chairman, Board of Governors, Federal

Reserve System, accompanied by Woodlief Thomas, Economic

Adviser, and D. B. Hexter, Assistant General Counsel

149,

673

125

19,

57, 91, 293, 367, 401, 437, 495, 529

Robertson, Hon. J. L., Governor, Board of Governors, Federal Reserve

System, accompanied by Howard H. Hackley, General Counsel. - -

Additional data submitted to the committee by-

Brown, Hon. Paul:

State of North Carolina, banking department, Edwin Gill, State

treasurer and chairman, letter to Hon. George A. Shuford,

dated June 27, 1957.

Comptroller of the Currency:

American Bar Association, resolution of February 19, 1957.

Audit reports, 1952-56: Letter of July 30, 1957.

Bonds of the Comptroller, Deputy Comptroller, and employees of
the Office of the Comptroller of the Currency, letter of July 29,
1957.

Caption appearing on reports of examination of national banks,
letter of August 2, 1957 -

Conflict-of-interests statutes applicable to Government employ-

ees; letter of July 25, 1957---

Functions of Comptroller of the Currency.

Increases in money supply caused by all things except Federal

Reserve notes in last 5 years_

19

723-

168

258

364-

365

363

205

628

Estimated production of gold in the United States (based

upon arrivals at the United States Mint and at private

refineries)

628

Privately held money supply, June 1947-57-

628

Letter of March 20, 1957, to Hon. A. Willis Robertson__

Letter of October 3, 1957, to Hon. Wright Patman, in answer to

questions put to the Comptroller in letter of September 16,

1957...

United States production of silver, 1947-56, in fine ounces-

Jewell Tea Co., Chicago, Ill., letter of July 8, 1957, to Comptroller

of the Currency.

Additional data submitted to the committee by-Continued

Comptroller of the Currency-Continued

Mergers:

Consolidations, mergers, and purchase and sale transactions

approved by the Comptroller of the Currency:

1950.

1951

1952

1953.

1954.

1955

1956

Consolidations, mergers, and purchase and sale transactions

approved by the State banking departments:

1950

1951

1952

1953.

1954.

1955

1956.

All commercial banks, 1950 to 1956.

National and State-chartered banks consolidated, merged,

or purchased by other national and State-chartered banks

from January 1, 1950 to June 30, 1957.

Consolidations, mergers, and purchase and sale trans-

actions approved by the Comptroller of the Currency,

1957.

Consolidations, mergers, and purchase and sale transac-

tions approved by the State banking departments,

1957

National and State-chartered banks consolidated,

merged, or purchased by other national and State-

chartered banks during the 6 months ended June 30,

1957___

Page

581

582

583

584

586

589

592

594

595

596

597

599

601

603

605

606

613

614

612

National banks acting as insurance agent or broker: Letter of

July 29, 1957___

Summary of consolidations, mergers, and purchase and

sale transactions, by years..

Proposed amendment on administration of pension and profit-

sharing accounts of national banks_

Rates of interest permissible under State law, letter of August 7,
1957__

621

Small loan laws, by States.

622

Stock options, requirements, letter of August 13, 1957.

672

Subpena reports of examination of national banks; letter of Au-
gust 7, 1957.

357

Summary of new common stock sold by national banks for years

1947 to 1956, inclusive..

223

Federal Deposit Insurance Corporation:

Civil-service retirement and disability benefits and employees

compensation benefits.

721

721

Employment, separation, and compensation...

Interest on paid-in capital compounded annually from June 30,

1934 to June 30, 1947, and compounded from June 30, 1947, to

dates of repayment of capital at same rates as the average yield

on United States Government obligations owned at those dates.

852

Additional data submitted to the committee by-Continued

Federal Deposit Insurance Corporation-Continued

Letter of August 16, 1957, in answer to requests by Hon. Wright

Patman.

Page

725

Exhibit 1. Capital ratios of national banks, 1865-1956-

Exhibit 2. Total capital accounts per $100 of assets of na-

tional banks, 1865-1956-

726

727

Exhibit 3. Earnings, expenses, and distribution of profits in

insured commercial banks, 1934–56_-

728

Exhibit 4. Insured commercial banks, net profit after taxes,

1934-56, and earnings on obligations of United States Gov-

ernment, 1945–56_-

730

Exhibit 5. Insured commercial banks' capital accounts, De-

cember 31, 1940-56-

730

Exhibit 6. Comparison of interest paid on time and demand

deposits, service charges on deposit accounts, and FDIC

assessments, 1927-56, Federal Reserve members and all

insured banks.......

731

Officials and employees, 1934–56.

833

Temporary employees in bank liquidations, 1952–57.

Temporary employees in liquidations acquired January 1,

1952-July 31, 1957.

832

833

Petition: Application of FDIC, as receiver of the Home National

Bank of Ellensville, N. Y., for authority to sell assets as re-

quired by title 12, United States Code, section 192.

Power to require audits of insured banks..

660

719

Receivership of the Home National Bank of Ellenville, Ellenville,

N. Y

720

Recommendations for legislative changes, letter of August 20,

1957.

Letter to Hon. A. Willis Robertson, dated October 2, 1956_-

Letter to Hon. A. Willis Robertson of November 2, 1956..

Recommendations for the amendment of the Federal Deposit

Insurance Act and related laws.

Suggested minor changes of Federal Deposit Insurance Act in

S. 1451..

U. S. Government obligations owned, by maturities as of July

31, 1957.

743

Federal Reserve System:

Agencies for which the Federal Reserve banks act as fiscal agents

and the capacities in which they act

Assets of retirement system of Federal Reserve banks, February

1957...

Bank consolidations, mergers, and absorptions, 1952-56-

Bank premises of Federal Reserve banks and branches, Decem-

ber 31, 1956..

Other real estate acquired for banking house purposes-

Cafeteria and/or other restaurant receipts and losses during year

1956 for each of the banks and the Board__.

Computed interest charge and computed interest rate on Federal

securities

Consumer credit, by holder.

Corporate bond issues.

Combined balance sheet of United States corporations, 1954-

Destruction of unfit silver certificates and United States notes__

Dividends on preferred stock not deductible for Federal income-

tax purposes except as authorized by section 583 of the Internal

Revenue Code of 1954..

Earnings and expenses of Federal Reserve banks during 1956 - -

Earnings of Federal Reserve banks during 1956 on discounts and

advances secured by other than United States Government

securities.

540

568, 569

115

443

444

444

75

78

385

528