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X-6570 C0 P Y Apr. 15, 1950 Federal Reserve Board Mr. Wyatt-General Counsel. 397 . Status of legislation recommended "by the Board* I respectfully submit the following report as to the status at the close of "business on April 14th of certain legislation which the Federal Reserve Board has recommended to Congress: 1. Ap t.p Section 9 of the Federal Reserve Act to permit Stat* to establish foreign branches. S. 2605 passed the Senate without amendment on April 14th; and I am informed that there will be no opposition in the House Committee on Banking and Currency, which takes the position that i t i s merely intended to correct a mistake made by the Senate in revising the branch bank provisions of the McFadden B i l l . It might be advisable, however, to s a i l the matter again to the attention of Mr. IttFadden. 2. An amendment to Sections 6 and 9 of the Federal Reserve Act permitting cancellation of Federal reserve bank stock held by member bahBmr which have gone out of business without a receiver or liquidating agent having been appointed therefor. - H.R. 6604, which i s the b i l l submitted by the Board rrith slight amendments, passed the House on February 19th; and S. 2666, which i s a b i l l exactly as recommended by the Board, passed "the Senate on April 1st. It will be necessary either for the House to adopt the Senate B i l l or have the Senate adopt the House B i l l before this proposed amendment becomes law; and on April 3rd Mr. Piatt wrote a letter to Mr. McFadden suggesting that the House adopt the Senate B i l l in order to expedite final action. He had previously written a l e t t e r to Senator Norbeck suggesting that the House B i l l be substituted for the Senate Bill in order to expedite final action. Mr. Thompson advises me that he i s informed that the |enate will withdraw i t s b i l l and adopt the House B i l l ? instead. 3. An amendment making i t discretionary with the Federal Reserve Board to assess the costs Qf examining State member hanlra against the bank examined. S. 485, the Senate B i l l for this purpose, passed the Senate on April 14th and will be referred to the Banking and Currency Committee of the House within the next day or two. A similar b i l l passed the Senate during the last session, however, and was never reported out by the' Banking and Currency Committee of the House of Representatives. I have taken the matter up informally with Mr. Piatt and I understand that he frill take the matter up with the House Banking and Currency Committee to see i f this b i l l can be reported out in time to be voted upon at this session of Congress, 4, An amendment to Section 9 of the Ifodoral Reserve Act authorizing X-6570 <") . < > , 2 - the Federal Reserve Board to waive the six months notice of intended withdrawal of a State member bank from the Federal Reserve System. - H.R. 8877 passed the House on April 3rd and passed the Senate on April 14th. I t should "be ready for the President's signature within the next two or three days. 5. An amendment to Section 4 of the Federal Reserve Act. to permit an o f f i c e r , director or employee of a mutual savings bank to serve as 6 Class B director of a Federal Reserve Bank. - S. 4079 passed the Senate on April 14th and will be referred to the House Banking and Currency Committee within the next day or two. 6. An amendment exempting Federal reserve banks from attachment or garnishment •pror.aftflfttffs before final judgment i» any case or •proceeding. - B i l l s for this purpose (H.R. 10035 and S. 3626) have been introduced but neither b i l l has been reported out. 7. An amendment to the .judicial code restoring to the United States District Courts .jurisdiction ojf suits by and against Federal reserve banks. - This amendment was recommended in the Board's Annual Reports for the years 1927 and 1928 and i s again being recommended in the Annual Report for 1929, but the Board has never addressed letters on this subject to the Chairmen of any of the Committees of Congress* I mentioned the matter informally in a social conversation with Honorable Hatton T. Summers, ranking Democrat of the House Judiciary Committee, and he told me that he thought the b i l l would receive favorable action i f I t were introduced. 8. An amendment to Section 13 of the Federal Reserve Act increasing from 15 to 90 days the mm-riaim maturity of advances made by Federal reserve banks to member banks on their promissory notes secured by -paper Eligible for rediscount by Federal reserve banks and making debentures df Federal intermediate credit bariVa eligible as collateral security 4o 15-da.v notes. - S. 4139, introduced by Senator Baird on April 10, ^.930, and not yet reported out. Wo corresponding b i l l introduced in tbe House at this session. 9. ftill to amend Section 4 so as to clarify meaning of phrase "electors voting" in provision re elections of Federal reserve bank directors.— B i l l s for this purpose (H.R. 10249 and S. 4096) have been introduced in both houses of Congress but neither b i l l has yet been reported out. 10. An amendment to the fourth paragraph of Section 13 of the Federal Reserve Act making the limitations prescribed by that paragraph X-S570 — > 3 3 conform to Section 5200 of the Revised Statutes as amended, "by the McFaddon Act. - H.R. 9046 has passed both Houses of Congress and "/as signed "by the President on April 12. I t i s now law and i s known as Public Act Ho. 120. 11. An amendment to Section 22(a) of the Federal Reserve Act mflVing i t . c l e a r that the prohibition against examiners accepting inana and gratuities from member banks applies to Stato examiners. S. 3541 passed Senate April 14 and will be referred to House Banking and Currency dommitteo within nejet day or two. A similar b i l l , H.R. 10070, has beeii introduced in House, but not yet reported out. 12. An amendment to rna-Ve the robbery or burglary of a menw ber bank a Federal offense punishable through the Federal courts. B i l l s for this purpose (H.R. 10067 and S. 4080) have been introduced in both Houses, but neither b i l l has been reported out. 13. B i l l authorizing voluntary surrender of trust powers by national banks. - S. 3627 passed Senate April 14 and will be referred to House Banking and Currency Committee within next day or two. A similar b i l l , H. R. 10036, was introduced in House February 18, but has not yet been reported out. 14. Resolution authorizing construction of building for Pittsburgh branch. - H.J. Res. 227, signed by President, April 12. CONCLUSION For the sake of brevity this memorandum omits a l l detailed information as to the character of these b i l l s . That information, however, will be gladly supplied by this office to any member of the Board desiring i t . This o f f i c e will also be glad to draft any further letters or take any other steps which the Board desires to have taken with respect to these b i l l s or any other b i l l s . Respectfully, (Signed) WW:vdb Walter Wyatt, General Counsel.
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