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56r* A meeting of the Board of Governors of the Federal Reserve SYstem was held in Uashington on Monday, April 12, 1943, at 11:00 a, PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman McKee Draper Evans Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereII-latter P ecieral referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Ileserve System held on April 10, 1943, were approved unani- raeRiely. Letter to Mr. Fleming, President of the Federal Reserve Bank Or elev. eland, reading as follows: 11 "In lett In accordance 'with the request contained in your coil April 3, 1943, the Board approves the appoint:ent of Reno P. Ransom as an examiner for the Federal Reul=e Bank of Cleveland. Please advise us of the date wflich the appointment becomes effective." Approved unanimously. Letter to the board of directors of the "Farmers Bank Of °Y.CitOn" - $ bpoydton, Virginia, stating that, subject to conditions of niellibel‘shiP numbered 1 to 3 contained in the Board's Regulation H, the 563 4/12/43 -2- Board approves the bank's a-cplication for membership in the Federal Reserve System and for the a:Jpropriate amount of stock in the Federal Reserve Bank of Richmond. The letter also contained the following special comment: "It appears that the bank possesses certain powers "ch are not being exercised and which are not necessarily required in the conduct of a banking business, such as the power to guarantee the payment of bonds. Atten10n is invited to the fact that if the bank desires to exercise any oowers not actually exercised at the time of o .imission to membership, it will be necessary under condi: I on of members - in numbered 1 to obtain the permission of the Board of this ernection, Governors before exercising them. In the Board understands that there has been no in the scope of the con orate po-Ters exercised by the bank since the date of its application for member- Z Approved unanimously, for transmission through the Federal Reserve Bank of Richmond. Letter to the board of directors of "The Anacostia Bank, Anae"tia, D. C.", Washington, tion, ' of melabership numbered 1 tIon H 'the Board approves the the Federal Reserve System and in th_w Federal Reserve Bank of D. C., stating that, subject to condito 3 contained in the Board's Regulabank's application for membership in for the appropriate amount of stock Richmond. Approved unanimously, together with a letter to Mr. Leach, President of the Federal Reserve Bank of Richmond, reading as follows: "The Board of Governors of the iederal Reserve System ) : 1 131'elit'es the application of 'The Anacostia Bank, Anacostia, Washington, D. C., for membership in the Federal Reserve oYstem, subject to the conditions prescribed in the en "L%Losed letter which you are requested to forward to the 564 4/12/43 -3-- "Board of Directors of the institution. A CO)y is also enclosed for your files. "In an informal discussion of this case with the Comptroller's Office we were informed that efforts had been macle to get the bank to increase its capital thro ugh the sale of additional stock but that to date there had been I0 defi nite action by the bank in that regard. We passed on to the representative with whom the discussion was had the fact that the desirability of increasing the capital was taken UD with the management by the Reserve Bank in connectio n with the bank's application for membership and that the management indicated that there should be no dif!:Lculty in sell ing $10D,OCC new stock within a year. It is understo od that the matter will be followed up right ?lay by the Comp troller's Office in an effort to get plans toward that end under vayas promptly as possible." Letter to the Presidents of all the Fede ral Reserve Banks, reading as follows: "The Board has received from the Department, the Navy Department, and the United States Maritime Commission advice of the approval by each of those Agencies of a revised standard form of guarantee agreement identified by the Word s '(Form . of April 6, 1943)', as enclosed herewith, for i;se in operations under Executive Order No. 9112 and the oard's Regu lation V. In this conn ection the following documents are enclosed: "1. Letter from the ,q-ir Department to all Federal Reserve Bank s, dated April 8, 1943, signed by Brigadier General A. H. Carter, Director, Fiscal Division, Army Service Forces; together with a nlimeographed cooy of the revised form of guarantee agree ment of April 6, 1943, dulT authenticated by General Carter. "2. Letter from the Navy Departme nt to all Federal Reserve Bank s, dated April 8, 1943y signed by Mr. Sidney A. Mitchell, Chie f of Finance Section; together -ith a mimeographed copy of the revised form of guar agre ante emen e t of Apri l 6, 1943, duly au thenticated by Mr. Mitchell. , "3. Letter from the United States Maritime uommission 12, 1943, to all Federal neserve Banks, dated April signed by Mr. W. C. Peet, Jr., Secretary; tiogether ith a mimeographed copy -f the revised °I ' m of guarantee agreement of April 6, 1943 duly , aut henticated by Mr. Peet. 565 4/12/43 -4- "4. Conformed copies of letters addressed to all Federal Reserve Banks by General Carter of the War Department, dated April 8, 1943, and by Mr. Mitchell of the Navy Department, dated April 8, 1943, regarding the use of the revised form of guarantee agreement of April 6, 1943, with certain necessary minor changes, in cases in which a Federal Reserve Bank makes or participates in making a guaranteed loan. "The revised form of guarantee agreement is now being Printed; and a supply of the printed forms of the agreement Will be sent you as soon as possible." Approved unanimously. Telegram to Mr. Young, President of the Federal Reserve Bank of Chicago, reading as follows: "Board of Governors apurov es changes in Interdistrict Time Schedule requested in Mr. Petersen's April 9 letter. Letter of advice being sent to all Presidents." Approved unanimously, together with the following letter to the Presidents of all the Federal Reserve Banks: the Board request of the Federal Reserve Bank of Chicago, of Governors of the Federal Reserve System has ?Proved the follow ing changes in the Interdistrict Time chedule for cash items: From To Detroit to New Orleans 3 days 2 days Detroit to Omaha 3 days 2 days Chicago to New Orleans 3 days 2 days Chicago to Omaha ' 2 days, 1 day Thereupon the meeting adjourned. Chairman.
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