The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
S51.
Minutes of actions taken by the Board of Governors of the
Federal Reserve System on Thursday, April 10, 1952.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Martin, Chairman
Szymczak
Evans
Vardaman
Mills
Robertson
Mr. Carpenter, Secretary
Mr. Sherman, Assistant Secretary
Mr. Kenyon, Assistant Secretary
Minutes of actions taken by the Board of Governors of the
Federal Reserve System on April
Memorandum dated April
9, 1952, were approved unanimously.
8, 1952, from Mr. Vest, General Counsel,
recommen
ding that the resignation of Richard J. Lewis, L9w Clerk in
the Legal Division, be accepted to be effective in accordance with
his request at the close
of business April 19, 1952.
Approved unanimously.
Letter to Mr. Diercks, Vice President, Federal Reserve Punk of
Chicago, reading as follows:
"Reference is made to your letter of March 26, 1952,
submitting for the Board's consideration a proposal of the
Elston Bank & Trust Company, Crawfordsville, Indiana, to
Purchase certain assets and assume the deposit liabilities
of the Citizens National Bank of Crawfordsville, Indiana,
under a plan which provides for the retirement of the outstanding capital stock of the latter institution at its
full value and an increase of only $100,000 in the capital
Of the assuming bank.
"It is noted that the Elston Bank & Truut Company expects to retain about two-thirds of the deposits acquired
F52
4/10/52
-2-
"from the Citizens National Bank and that the transaction
Will result in a net pay-out of capital funds of approximately $125,800. It is also noted that the capital funds
of the Elston Bank & Trust Company in relation to total
assets are less than the national average for member banks
and that the ratio would be further reduced following the
absorption of the national bank.
"In all the circumstances, the Board does not feel
that it would be justified in approving the proposed transaction upon the undertaking of the continuing bank to increase its capital 0_00,000."
Approved unanimously.
Telegram to Mr. Hill, Vice President, Federal Reserve Bank of
Philadelphia,
reading as follows:
"Reurtel April 10. Board approves designation of
John T. Callaghan as special assistant examiner for the
Federal Reserve Bank of Philadelphia."
Apj)roved unanimously.
Letter to International Banking Corporation, )) Wall Etreet,
New York, New York, reading as follows:
"The Board of Governors of the Federal Reserve System
authorizes International Banking Corporation, a corporation organized and existing under the laws of the State of
Connecticut and having its principal office and place of
business in New York, New York, pursuant to the provisions
of the agreement entered into with the Board of Governors
Of the Federal Reserve System under the provisions of Section 25 of the Federal Reserve Act, tc establish an agency
at the New York International Airport, Queens County, New
York, New York, and to operate and maintain such agency
subject to the provisions of such agreement and the following limitations and conditions:
(1) That the functions to be performed by the
agency will be limited to those described
in the license issued by the Superintendent
4/10/52
-3"of Banks of the State of New York under
date of M.rch 5, 1952;
(2) That the agency will be established and
opened for business within six months from
the date of this letter; and
(3) That the agency will be discontinued whenever the Board of Governors of the Federal
Reserve System may deem it advisable end
shall so require."
Approved unanimously, for
transmittal through the Federal
Reserve Bank of New York.
Letter to The Farmers National Bank of Annapolis, iinnarolis,
Maryland,
reading as follows:
"The Board of Governors of the Federal Reserve
Fystem has given consideration to your application for
fiduciary powers, and grants you authority to act, when
not in contravention of State or local law, as registrar
Of bonds in the City of Annapolis, Maryland, and the
County of Anne Arundel, Maryland, the exercise of such
authority to be subject to the provisions of the Federal
Reserve Act and the regulations of the Board of Governors
of the Federal Reserve System.
"This letter will Ye your authority to exercise the
fiduciary powers granted by the Board rending the preparation of a formal certificate covering such authorization,
lallich will be forwarded to you in due course."
Approved unanimously, together
with the following letter to Mr. Leach,
President, Federal Reserve Bank of
Richmond:
"The Board of Gcvernors has approved, in Part, the
aPPlication of The Farmers h?_tional Bank of Annapolis,
Annapolis, Maryland, for fiduciary powers as evidenced by
the enclosed letter, which you are requested to forward
O the applicant.
A copy of such letter is also enclosed for your files.
4/10/52
-4-
'It has been the policy of the Board not to grant
fiduciary powers to national banks except in terms of
section 11(k) of the Federal Reserve Act and for this
reason, authority to act as 'paying agent', requested
by the applicant, is not included in the grant of fiduciary powers in this instance. In this regard it is the
view of the Board that the duties and responsibilities
involved in corporate and municiral Payint, agency appointments are not inconsistent with those embraced in
tile charter authority to conduct c. general banking
business. Therefore, a special grant of fiduciary
authority should not be necessary to support the acceptance and administration of appointments of such kinds.
Will you please advise The Farmers National Bank of
AnnaPolis accordingly."
Telegram to Mr. Raisty, Assistant Vice President, Federal Reserve
Bank of
Atlanta, reading as follows:
"Reurtel April 7, 1952. Regulation Iv Amendment No.
did not reverse W-104. FHA Title I Credit Application
form satisfies requirements of section 4(d) of regulation
in case of Group D article. According to FliA advice, both
the FHA Title I Cash Down Payment Certificate form and the
Credit Application form referred to in W-104 are required
in the case of 'combination units' subject to Group P."
7
Approved unanimously.
Letter to Mr. Strothman, Vice President, Federal Reserve Dank of
14inneapolis, reading as follows:
"This refers to your letter of Yarch 24, 1952, concerning Regulation W and the instalment leasing of automobiles
by Lend-Lease Transportation Company of Minneapolis. The
question raised by the Company involves the proper treatment of such matters as insurance and finance charges in
connection with leases subject to the regulation.
"From your letter it appears that the Company makes a
Specified charge for 'hazard insurance' which is included in
4/10/52
-5-
"the rental to be paid under any such lease. It appears
further, however, that the 'only finance cost' relative
to such leases is included in 'general admInistrative exPenses' and that, according to the Coml,any, 'it vould
not be feasible to allocate a financing charge to each
lease'.
"Under sections 3(a) and 6(c)(4) of the regulation-and as indicated by S-1277 ('v,-139) to which you referred-the balance remaining after the required down payment or
deposit and subject to the instalment payment and maximum
maturity provisions, must include any insurance and finflnce
or similar charges in connection with an instalment lease
which are items of cost to the lessee. This conforms also
to the principles stated in paragraph (9) of
F-1190
and S-1432 (-180).
"In accordance with the foregoing, it seems clear that
the insurance charge should be included in calculating the
instalment rental payments. On the other hand, if a finance
or similar charge is not allocated to each lease as a cost
to the lessee, the instalment rental payments would not
nave to be increased to cover any such charge."
Approved unanimously.
hr. Carpenter reported that the Comptroller of the Currency
would issue a call on April 14, 19)2, on all national bani:s for rePorts of condition as of the close of business on March 31, 1952, and
that,
in accordance with the usual practice and the Board's letter of
1952, a call would be made on April 14 on behalf of the Board
of
Governors of the Federal Reserve l:ystem on all state member banks
for
reports of condition as of Mrrch 31, 1992.
The call to be made on behalf
of the Board on April 14, 1972, w'
approved unanimously.
7:retary.
@FedFRASER