19431221_minutes.pdf

1949

NerA,-, Reserve System held on December 20, 1943,k°1181Y.

A meeting of the Board of Governors of the Federal Reserve

Shtem was held in Washington on Tuesday, December 21, 1943, at 11:308..ta.

PRESENT: Mr. SzymczakMr. McKeeMr. DraperMr. Evans

Mr. Morrill, SecretaryMr. Bethea, Assistant SecretaryMr. Carpenter, Assistant SecretaryMr. Clayton, Assistant to the Chairman

The action stated with respect to each of the matters herein-

referred to was taken by the Board:

The minutes of the meeting of the Board of Governors of the

were approved unani-

Memorandum dated December 17, 1943, from Mr. Morrill, recom-Merl

dille that the leave without pay granted Mrs. Grace K. Dove, As-Blatant ,

oupervisor of the Files Section, on November 15, 1943, betofled

10 / Upon the advice of her Dhysician, for the period December

to 31, 1943, inclusive.

Approved unanimously.

Memorandum of this date from Mr. Morrill, submitting the res-

illati°r1 of Miss Kay Scott as a clerk in the Secretary's Office, to

effective as of the close of business on December 31, 1943, and

4e°11iniencling that the resignation be accepted as of that date withN" deduction from her last salary check for 3 days, 4 hours, and

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950

12/21/43

-2-20

autes of overdrawn sick leave.

The resignation was accepted asrecommended.

Telegram to Mr. P. 0. Davis, Director of Extension Service of

the Alabama Polytechnic Institute, Auburn, Alabama, reading as fol-lows:

"Board of Governors of the Federal Reserve Sys-

Fed has appointed you director of Birmingham Branch of

ederal Reserve Bank of Atlanta for the unexpired portion2f term ending December 31, L9/45, and will be pleasedto have your acceptance by collect telegram."

Approved. unanimously.

Letter to Mr. 'k)olley, Vice President of the Federal Reserve

13ezilt f' T

" ransas City, reading as follows:

"In accordance with theletter of December 16, 1943,ignation of the following asfor the Federal Reserve Bank

request contained in yourthe Board approves the des-special assistant examinersof Kansas City:

Claude AbbottT. L. BrauningerPaul CartrightJ. V. FislerGrover D. FlanaganE. I. HardestyE. J. PrestonEdwin S. hillockJames F. Young"


Letter to the board of directors of the "Huntington Station

Iluntington Station, New York, stating that, subject to conditions

Mbel'shiP numbered 1 to 3 contained in the Board's Fegulation H


1.951

12/21/43-3-

and the followini, special condition, the Board approves the bank's

84)134°8:Lion for membership in the Federal Reserve System and for

aPPropriate amount of stock in the Federal Reserve Bank of New

"4. Prior to admission to membership, such bank, ifit has not already done so, shall charge off orOtherwise eliminate estimated losses of 3,513,as shown in the report of examination of suchbank as of November 1, 1943, made by an examinerfor the Federal Reserve Bank of New York."

Approved unanimously, together witha letter to Mr. Sproul, President of theFederal Reserve Bank of New York, readingas follows:

the

York:

tem"The Board of Governors of the Federal Reserve Sys-aPproves the application of the 'Huntington Stationahant.1

Huntington Station, New York, for membership in'"e Federal Reserve System, subject to the conditionsPtrescribed in the enclosed letter which you are requestedTc)vi fc)rwaz'd to the Board of Directors of the institution.

copies of such letter are also enclosed, one of whicht for your files and the other of which you are requestedfor

to the Superintendent of Banks for the StateJew York, for his information.

th It is assumed that you will follow the matter ofofe bank's bringini; into conformity with the provisions

..aw and the Board's regulations the savings accounts

be,rs s'ed on page 16 of the report of examination for mem-- hip.li

Letter to the board of

Ntpallyit, Fayetteville,Of membership

kd thenumbered

f°1101,7ino•

41113lication for membership

directors

Arkansas,

of the "Mcilroy Bank & Trust

stating that, subject to conditions

1 to 6 contained in the Board's Regulation H

special conditions, the Board approves

in the Federal Reserve System

the

and

bank'

for the


1_952

12/21/43

aPPropriate

117.

"8,

44.01lows:

amount of stock in the Federal Reserve Bank of St. Louis:

At the time of admission to membership such bankshall have a paid-up and unimpaired capital of notless than '1.00,000.

Prior to admission to membership such bank, if ithas not already done so, shall charge off or other-wise eliminate estimated losses of '1.,908.97, asshown in the report of examination of such bank asof November 13, 1943, made by an examiner for theFederal Reserve Bank of St. Louis."

Approved unanimously, together witha letter to Mr. Davis, President of theFederal Reserve Bank of St. Louis, readingas follows:

"The Board of Governors of the Federal Reserve Sys-tem✓ approves the application of the rtf,cIlroy Bank & Trust

i,1(3mPanY', Fayetteville, Arkansas, for membership in theFed' Reserve System, subject to the conditions prescribed

the enclosed letter which you are requested to forward• the Board of Directors of the institution. Two copies'ft such letter are also enclosed, one of which is for your

es and the other of which you are requested to forward• the State Bank Commissioner for the State of Arkansas,

r his information."It has been noted that at the special meeting of thestocir,L,nolders which had been called for December 14 it was

1- 1Dected to vote on a proposed change in the corporate titleual he bank. In your telegram notifying us of the bank'swa ssion to membership please advise us whether the titleors actually changed, and, if so, give the exact wording

the new title."

Letter to "The Tiffin National Bank", Tiffin, Ohio, reading

1.913 "This refers to the resolution adopted on June 19,

the 1,3 by the board of directors of your bank, signifying

• ank's desire to surrender its right to exercise fidu-cla17 powers heretofore granted to it.


1953

12/21/43 -5-

"The Board, understanding that your bank has beendischarged or otherwise properly relieved in accordancewith the law of all of its duties as fiduciary, has is-!Ixed a formal certificate to your bank certifying that

is no longer authorized to exercise any of the fidu-elarY powers covered by the provisions of section 11(k)5 the Federal Reserve Act, as amended. This certificate18 enclosed herewith.

"In this connection, your attention is called to thect erthat, under the provisions of section 11(k) of the

Feddal Reserve Act, as amended, when such a certificate

Illas been issued by the Board of Governors of the Federalisserve System to a national bank, such bank (1) shall no2flger be subject to the provisions of section 11(k) ofns Federal Reserve Act or the regulations of the Board

Governors of the Federal Reserve System made pursuantrereto, ( 2) shall be entitled to have returned to it any:?curities which it may have deposited with the State or,Imilar authorities for the protection of private or courtrAsts, and (3) shall not exercise any of the powers con-I'rred by section 11(k) of the Federal Reserve Act except:1th the permission of the Board of Governors of the Fed-

Reserve System."

or san


Letter to Mr. Hale, Vice President of the Federal Reserve Bank

Francisco, reading as follows:

re "This refers to your letter of December 11, 1943)te,arding the computation of guarantee fees under Regula-

to-r;,1 V in cases in which the financing institutions wish

on ;i'llow their customary practice of computing interest

letV)ans on a 360-day basis. You refer to the Board's

put" of December 4, 1943 (5-712), stating that the corn-of guarantee fees should be continued on a 365-day

813,4:luring the year 1944.hav 'It is believed that every effort should be made to10.! financing institutions compute interest on guaranteed4:8 on a 365-day basis, if practicable. However, in

lo,„?! in which the financing institution insists upon fol-bet:t"g the practice of computing interest on a 360-day'Is, the amount of the guarantee fee payable by the


1954

12/2v43

ing a

-6--

"financing institution to the Reserve Bank should be com-Pu!,ed on the same basis. In other words, in any such case

!rising under the April 6, 1943, form of guarantee agree-nit, the amount of the guarantee fee should be the speci-fied percentage of the entire amount of interest payableby the borrower on the guaranteed portion of the loan; and?/1 cases arising under the May 14, 1942 form of agreement,the rate should be computed so as to obtain a like result."

Approved unanimously, together with

letters to Colonel Cleveland, Mr. Coolidge,and Lieutenant Griffith of the lAar and Navy

Departments and the Maritime Commission,

respectively, transmitting copies of Mr.

Hale's incoming letter and the above re-ply.

Letter to the Presidents of all the Federal Reserve Banks, read-

8 f011OWS :

"In connection with the execution of guarantees underecutive Order No. 9112 on behalf of the United Statesaritime Commission, there is enclosed a photostat of a

Araetter received by the Board from Mr. R. E. Anderson, Di-

cla!t°r of Finance, United States Maritime Commission,._ued December 15, 1943, authorizing Mr. J. G. Conkey'8° execute certificates of the Maritime Commission and

etting forth Mr. Conkey's signature."


Letter to the Comptroller of the Currency, reading as follows:

"It is respectfully requested that you place an or-with the Bureau of Engraving and Printing, supplement-

42g the order of June 15, 1943, for printing of Federal

n?rve notes of the 1934 Series in the amounts and de-stated for the following Federal Reserve

anks:


1955

11/21/43 -7-

"Denomi—nation

Number ofsheets Amount

New York 5 2,100,000 $126,000,00010 1,150,000 138,000,000

50 140,000 84,000,000

100 210,000 252,000,000

Atlanta 5 850,000 51,000,00010 500,000 60,000,000

20 300,000 72,000,000

100 50,000 60,000,000

500 2,000 12,000,000"


Memorandum dated December 20, 1943, from. Mr. Foulk, Fiscal

Aftt, recommending that an assessment of three hundred forty—three

thousandths of one per cent (.00343) of the total paid—in capital and

611115/118 (sections 7 and 13b) of the Federal Reserve Banks as of theclose „,„

vl business December 31, 1943, be levied to cover the general

elLAeritiet,' of the Board for the six months' period beginning January 1,

1444, and that the Federal Reserve Banks be instructed to pay the

488688slent in two equal instalments on January 3 and March 1, 1944.

The following resolution levyingthe assessment in accordance with the

Fiscal Agent's recommendation was adoptedby unanimous vote:

p„"WHEREAS, Section 10 of the Federal Reserve Act, as

Go.;"'ed, provides, among other things, that the Board of

to rnors of the Federal Reserve System shall have powerpr 4-svY semiannually upon the Federal Reserve Banks, in

m41;,ortion to their capital stock and surplus, an assess—

Elai sufficiently to pay its estimated expenses and the

suc:fies of its members and employees for the half year

eding the levying of such assessment, together with." eficit carried forward from the preceding half year,arid


12/21/43

HEREAS, it appears from a consideration of theestimated expenses of the Board of Governors of the Fed—eral Reserve System that for the six months' period be—ginning January 1, 1944, it is necessary that a fundequal to three hundred forty—three thousandths of onePer cent (.00343) of the total paid—in capital stocklInd surplus (Section 7 and Section 13b) of the Federaltteserve Banks be created for such purposes, exclusive5 the cost of printing, issuing and redeeming Federaltteserve notes'

"NOW, THkREFORE, BE IT RESOLVED BY THE BOARD OFG°VERNORS OF THE FEDERAL RESERVE SYSTEM, THAT:

"(1) There is hereby levied upon the several Fed—!al Reserve Banks an assessment in an amount equal toftree hundred forty—three thousandths of one per cent

‘t:°O343) of the total paid—in capital and surplus (Sec-

7 and Section 13b) of each such Bank at the close0I business December 31, 190.

'(2) Such assessment shall be paid by each FederalRes erve Bank in two equal instalments on January 3, 1944,and March 1, 1944, respectively.

"(3) Re Every Federal Reserve Bank except the Federalserve Bank of Richmond shall pay such assessment byansferring the amount thereof on the dates as above pro-

11",ided through the Interdistrict Settlement Fund to the:deral Reserve Bank of Richmond for credit to the account

the Board of G-Ivernors of the Federal Reserve Systemthe books of that Bank, with telegraphic advice to

L:tehmond of the purpose and amount of the credit, and;"e Federal Reserve Bank of Richmond shall pay its as—

te8"lent bY crediting the amount thereof on its books0 the Board of Governors of the Federal Reserve Systemon the dates as above provided."

Thereupon the meeting adjourned.

1956

)1/-) Secretary.


19431221_minutes.pdf

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