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A meeting of the Board of Governors of the Federal Reserve

85r8teal was held in Washington on Tuesday, August 31, 1937, at 3:30

P. ite

PRESENT: Mr. Ransom, Vice ChairmanMr. Szymczak

Mr. Bethea, Assistant SecretaryMr. Carpenter, Assistant Secretary

Consideration was given to each of the matters hereinafter re-

tell'ad to and the action stated with respect thereto was taken by the

%sal:

Telegram to Mr. Martin, President of the Federal Reserve Bank

Or P4.

Louis, reading as follows:

"In accordance with your recommendation of August 25,1237) the Board will interpose no objection under the con-:Ition of membership to the expenditure by 'Citizens Bank',nartford, Kentucky, of approximately 44,000 for the pur-,?Ilase of the building in which the bank has its quarters.1lease advise the bank accordingly."

Approved unanimously.

Letter to Mr. Parker, First Vice President of the Federal Re-

eelle Bank of Atlanta, reading as follows:

"This refers to your letter of August 13, 1937, re-114!Iting to the right of 'The First National Bank of Miami',4. 4841, Florida, to exercise fiduciary powers. It appearsbaat on May 27, 1924, the Board granted the bank a permit!xi-titling it to exercise full fiduciary powers, but that

bank has never exercised any of such powers. The banktrIcAlires what additional requirements must be complied with'III order to complete its qualifications to act in a fidu-ciarY capacity.

"A permit granted pursuant to the provisions of sec-ti, on 11(k) of the Federal Reserve Act is for an indefiniteIt has not been the Board's practice to require that

El bank to which such a permit is granted thereupon formally

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8/31/37

Cluj

0•11.,.•

accept the permit or otherwise evidence an acceptance.Further, it is the Board's opinion that when a bank appliestor such a permit and it is granted by the Board uncondition-ally, the grant of authority to exercise the powers named insuch permit is complete and it is immaterial whether the bankthereupon evidences an acceptance of the permit. Accordingly,the Board is of the opinion that it is not necessary for TheFirst National Bank of MiRMi to obtain a new permit in orderto exercise fiduciary powers.

"However, before undertaking to exercise such powers,the bank must comply with the requirements of section 11(k)of the Federal Reserve Act and section 13 of Regulation Fconcerning the deposit of securities with the State authori-ties, and also with the requirements of section 6 of Regu-

1"ion F concerning the establishment of a separate trustdepartment and related matters."

Approved unanimously.

Telegram to Mr. Peyton, President of the Federal Reserve Bank

naeapolis, reading as follows:

"Your telegram August 28, re holding securities inollatody for F.D.I.C. as receiver of a member bank. Matterhae been discussed informally with Mr. Tefft of F.D.I.C.It is understood that F.D.I.C. is considering the wholematter of handling of securities of banks of which it isl'aceiver and that proposed plans will be discussed withthe Board before adoption. Pending developments and fur-tl?.ar advice, Board will interpose no objection in thecircumstances to the Reserve Bank continuing to hold se-curities in custody for account F.D.I.C. as receiver of aMember bank."

Approved unanimously.

There was submitted a recommendation that the Board authorize

thepayment of vouchers totaling $8,207.41, covering rent due for the

eDace occupied by the Board in the Washington and Shoreham Buildings

(11111118 the month of August, 1937.

Approved unanimously.

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There was submitted a recommendation, -.Nhicla had been approved

by 41,Personnel Committee, that the Board authorize the purchase of

'5

s, as listed in purchase order No. 2055, at a total cost of

Approved unanimously.

Thereupon the meeting adjourned.

Vi N Chairman.

ASE'l stant Secretary.

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