To Permit National Banks to Underwrite and Deal in "revenue Bonds"

COMMITTEE ON BANKING AND CURRENCY

WRIGHT PÅTMAN, Texas, Chairman

ABRAHAM J. MULTER, New York

WILLIAM A. BARRETT, Pennsylvania

LEONOR K. SULLIVAN, Missouri

HENRY S. REUSS, Wisconsin

THOMAS L. ASHLEY, Ohio

WILLIAM S. MOORHEAD, Pennsylvania
ROBERT G. STEPHENS, JR., Georgia
FERNAND J. ST GERMAIN, Rhode Island
HENRY B. GONZALEZ, Texas
JOSEPH G. MINISH, New Jersey
CHARLES L. WELTNER, Georgia
RICHARD T. HANNA, California

BERNARD F. GRABOWSKI, Connecticut
COMPTON I. WHITE, JR., Idaho
TOM S. GETTYS, South Carolina
PAUL H. TODD, JR., Michigan

RICHARD L. OTTINGER, New York
EARLE CABELL, Texas

THOMAS C. MCGRATH, JR., New Jersey
JOHN R. HANSEN, Iowa

FRANK ANNUNZIO, Illinois

WILLIAM B. WIDNALL, New Jersey
PAUL A. FINO, New York

FLORENCE P. DWYER, New Jersey
SEYMOUR HALPERN, New York
JAMES HARVEY, Michigan
W. E. (BILL) BROCK, Tennessee
BURT L. TALCOTT, California
DEL CLAWSON, California

ALBERT W. JOHNSON, Pennsylvania
J. WILLIAM STANTON, Ohio
CHESTER L. MIZE, Kansas

PAUL NELSON, Clerk and Staff Director
ALVIN LEE MORSE, Counsel
CURTIS A. PRINS, Chief Investigator
NORMAN L. HOLMES, Assistant Counsel
BENET D. GELLMAN, Investigative Counsel
ORMAN S. FINK, Minority Staff Member

CONTENTS

H.R. 7539. A bill to assist cities and States by amending section 5136

of the Revised Statutes, as amended, with respect to the authority of

national banks to underwrite and deal in securities issued by State and

local governments, and for other purposes. -

Statement of—

Balderston, Hon. C. Canby, Vice Chairman, Board of Governors of

the Federal Reserve System; accompanied by David B. Hexter,

Assistant General Counsel; and J. Charles Partee, adviser, Division

of Research and Statistics.

Condon, Raymond V., vice president, First Wisconsin National Bank
of Milwaukee.

Page

120

Goldberg, Daniel B., associate counsel to the Port of New York
Authority.

107

Hanna, Hon. Richard T., a Representative in Congress from the State
of California....

189

Harkness, Robert B., president, Harkness & Hill, Inc., Boston,
Mass-

160

Healy, Patrick, executive director, National League of Cities__.

Laing, Chester W., chairman, Committee for Study of Revenue Bond

Financing--

Milner, Thomas H., Jr., president and trust officer, National Bank
of Athens, Ga....

Morgan, William F., vice president, Investment Bankers Association
of America___

Saxon, Hon. James J., Comptroller of the Currency; accompanied by

Radcliffe Park, Deputy Comptroller of the Currency; and Roman

J. Gerber, Associate Chief Counsel....

123

115

143

St Germain, Hon. Fernand J., a Representative in Congress from the

State of Rhode Island..

142

118

Zaun, Ralph, vice president, Grafton State Bank, Grafton, Wis.;
president, Independent Bankers Association of America___
Zwiener, Kenneth V., chairman of the board, Harris Trust & Savings
Bank, Chicago, Ill., representing the American Bankers Association.

Additional information submitted to the committee by—

Balderston, C. Canby:

Comments on proposed amendment of Mr. Reuss to H.R. 7539--

Draft amendment to H.R. 7539 prepared by the staff of the Board

of Governors of the Federal Reserve System___

Letter to Hon. Wright Patman, concerning request of Mr. Reuss,
dated May 24, 1965----

Prepared statement of Austin J. Tobin, executive director of

the Port of New York Authority; with supplement_---

108

The Case for Commercial Bank Underwriting of Public Revenue

Bonds," by John K. Langum, economic consultant, Chicago,

Ill., dated June 11, 1963--

Interest rates paid on revenue bonds in comparison to general

obligations....

Prepared statement..

100

Report by the American Municipal Association's Committee on

Municipal Bond Financing----

101

Additional information submitted to the committee by-Continued

Laing, Chester W.:

Copy of Bank of America Standard Syndicate Agreement..

Letter to Hon. Wright Patman, dated May 24, 1965.

Letter to Hon. Wright Patman from Charles E. Cooper, dated

May 5, 1965.

Morgan, William F.:

Investment banking firms in the municipal bond business in the
United States as listed in the Bond Buyer Directory, 1965 early
edition, not including commercial banks..
Letter to Dr. Paul Nelson, dated May 3, 1965-
Prepared statement_
Summary statement-

Patman, Hon. Wright:

Letter from Edwin G. Michaelian, president, National Asso-

ciation of Counties, Washington, D.Ĉ., dated April 28, 1965.

Letter from F. Shelby Cullom, chairman of the Legislative Com-

mittee, National Association of Supervisors of State Banks,

Washington, D.C., dated April 26, 1965..

Letter to National Association of Counties Board of Directors

from National Association of Counties Ad Hoc Committee on

Underwriting of Revenue Bonds, dated November 22, 1964--

National Association of Securities Dealers, Inc., in opposition

to H.R. 7539__

Randall, K. A., Chairman, Federal Deposit Insurance Corpo-
ration, letter from, dated April 23, 1965-
Summary analysis of H.R. 7539.