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621 A meeting of the Board of Governors of the Federal Reserve SYstera was held in Washington on Thursday, April 252 1946, at 10:30 a. m. PRESENT: Mr. Mr. Mr, Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak Draper Evans Vardaman Mr. Carpenter, Secretary Mr. Morrill, Special Adviser Mr. Thurston, Assistant to the Chairman The action stated with respect to each of the matters herein— atter r eferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Federal. Reserve System held on April 24, 1946, were approved unani— 111(11181y. The minutes of the meeting of the Board of Governors of the '41 Reserve System with the members of the executive committee of the p ederal Advisory Council held on April 24, 1946, were approved Tel Pear. to Messrs. Dillard and Stewart, Secretaries of the Reserve Banks of Chicago and St. Louis, respectively, and Mr. Perton ''resident of the Federal Reserve Bank of Minneapolis, stating each case that, effective April 26, 1946, the Board approves the tlon by the Bank of the preferential rate of 1/2 per cent on advalice s to member banks under paragraphs 8 and 13 of section 13 of 622 VW46 -2- the Federal Reserve Act secured by obligations of the United States wilie.h had one year or less to run to call date or to maturity if no call date, it being understood that the rate of one per cent in effect at the Bank on advances to member banks would be applicable to all a'llreneee to member banks secured by such obligations irrespective of date upon Which they matured or might be called. The telegrams al8o stated that the Board approves the reestablishment of all Other rates now in effect at the respective Banks. Approved unanimously. Memorandum dated April 22, 1946, from Mr. Bethea, Director of the Division of Administrative Services, recommending that the temporary appointment of Mrs. Mary E. McGuire, a cafeteria helper that Di vision, be extended on a temporary basis for an indefinite 13"4c13 without change in her present salary of $1,440 per annum, effective April 27, 1946. The memorandum further stated that Mrs. Cr -4-kr4a had been informed of the retirement system and that it was e°101ated that she would become a member of the Board's plan. Approved unanimously. Memorandum dated April 23, 1946, from Mr. Bethea, Director the n4 .‘i-Lvision of Administrative Services, submitting the resignatiola of "MarY Alice Brundage, a clerk in that Division, and recomUr 4e4dirlcr 6 that the resignation be accepted effective as of the close of Of "May 10, 1946, and that a lump sum payment be made for any 623 4/25/46 —3— accrued annual leave remaining to her credit at that time. The resignation was accepted as recommended. Letter to Mr. Douglas, Vice President of the Federal Reserve B81* of New York, reading as follows: "The Board of Governors approves the changes in the Personnel classification plan of the Federal Reserve Bank Of New York, involving the Foreign Funds Control Department and the position of Utility Porter in the Clearings Division, as submitted with your letter of April 15, 1946." Approved unanimously. Letter to Mr. Gilbert, President of the Federal Reserve Bank of Dallas reading as follows: "The Board of Governors approves the payment of t'tar7 to Mr. John H. Barron as Assistant Cashier of El Paso Branch for the period April 19, 1946, to 31, 1946, inclusive, at the rate of ,13,500 per ! flnula Which is the rate fixed by the Board of Directors as reported in your letter of April 20." Approved unanimously. Letters to the "International State Bank," Raton, New Mexico, atid the "Citizens Independent Bank," Longview, Washington, respectivsliY reading as follows: "The Board is glad to learn that you have com12A-eted all arrangements for the admission of your bank Piet membership in the Federal Reserve System and takes ( ) 13 ea5ure in transmitting herewith a formal certificate ' Your membership. It will be appreciated if you will acknowledge ' eceipt of this certificate." Approved unanimously. 624 4/25/46 -4Letter to Mr. Valtse, Vice President of the Federal Reserve Bank of New York, reading as follows: "Reference is made to your letter of April 15, 1946, submitting the request of the 'Manufacturers and Traders Trust Company,' Buffalo, New York, for approval of the estabus hment of a branch in Springville, New York, in connection with the proposed merger with The Farmers Bank of SPringville, Springville, New York. The Board of Governors concurs in your opinion that the proposed merger will not result in any change in the general character of the assets of the Manufacturers and TI:aders Trust Company or broadening in the functions exercised by it, within the meaning of condition of membership numbered 2 to which it is subject. "In view of your recommendation, the Board approves the establishment and operation of a branch in Springville, /143n York, by the Manufacturers and Traders Trust Company, 1"falo, New York, provided the merger is completed sub86antially as proposed and the prior approval of the ap.°Priate State authorities is obtained, and with the unaerstanding that Counsel for the Reserve Bank will review "satisf y himself legality of all steps taken as to the t0 effect the merger and establish the branch.” 7 Approved unanimously. t,„„ of Letter to Mr. Fulton, Vice Pre. , :ident of the Federal Reserve Cleveland, reading as follows: "The 'William Penn Bank of Commerce,' Pittsburgh, Penn, " , A 'D.r-Lvania to which you refer in your letter of di 12, 1946, does not appear to be subject to a conG ti°n of membership requiring approval of the Board of f°vernors for an investment in bank premises or a site it7 bank building. Therefore, the institution is limited th this respect only by the provisions of Section 24A of e Federal Reserve Act except to the extent of administratie and supervisory control. It appears that the proposed investment of ,15,000 will 'rng i the total of the carrying value of the bank's 625 4/25/46 —5"investment in bank premises to approximately $63,000 While its capital stock amounts to t200,000 par and it, ls noted that you favor approval of the investment. In the circumstances, the Board's approval is unnecessary and the Board has no objection to the proposed investment." Approved unanimously. Letter to Mr. Swanson, Vice President of the Federal Reserve Ballk of• MInneapolis, reading as follows: "Reference is made to your letter of April 16, 1946, enclosing a copy of the agreement under which the 'Root River State Bank,' Chatfield, Minnesota, as— &ed deposits of the First National Bank, Chatfield, Minnesota, amounting to $39,069.38 upon receiving cash to cover. The Board of Governors concurs in the opinion °f Your Counsel that the transaction did not result in any Change in the general character of the business or , -11 the scope of the corporate powers exercised by the Root River State Bank. "In view of your recommendation, the Board will interinter— Pose 1 no objection, under of condition der the provisions of subject, is bank 431ernberehip numbered 8 to which the member to the investment of approximately $9,500 made by the Root River State Bank for the purpose of remodeling its banking tremises, which brought the total of its investment in anking premises, furniture and fixtures, to approximately 61 Approved unanimously. Letter to "The First National Bank of Menasha," Menasha, Wis— COnsi,„ reading as follows: 19 "This refers to the resolution adopted on September 1/, +1„45, by the board of directors of your bank, signifying s'e bank's desire to surrender its right to exercise fidu— d-arY powers heretofore granted to it. eh "The Board, understanding that your bank has been dis— arged or otherwise properly relieved in accordance with the law of all of its duties as fiduciary, has issued a formal 626 V25/0 -6- certificate to your bank certifying that it is no longer authorized to exercise any of the fiduciary powers covered ly the provisions of section 11(k) of the Federal Reserve "t, as amended. This certificate is enclosed herewith. . "In this connection, your attention is called to the Tact that, under the provisions of section 11(k) of the Neral Reserve Act, as amended, when such a certificate !,las been issued by the Board of Governors of the Federal .teserve 'System to a national bank, such bank (1) shall no Longer be subject to the provisions of section 11(k) or .t.-he regulations of the Board of Governors of the Federal /tt,eserve System made pursuant thereto, (2) shall be entitled ° Ilave returned to it any securities which it may have dePop.ted with the State authorities for the protection of Prlvate or court trusts, and (3) shall not exercise hereT'er any of the powers granted by section 11(k) without Ilrst applying for and obtaining a new permit to exercise such powers pursuant to the provisions of section 11(k)." Approved unanimously. Telegram to Mr. Johns, General Counsel and Secretary of the Pecierai Reserve Bank of Kansas City reading as follows: u "Retel April 23 regarding section 3(e) of Regulation a whlch permits bank to 'accept the transfer of a loan from ,nether bank without following the requirements of this re as to the making of a loan.' Board agrees with 'rur view that this does not authorize a bank to accept the 'Mnsfer of a loan which it knows to have been illegally made." Approved unanimously. Telegram tar to Mr. Dillard, Vice President of the Federal Reserve of Chicago, reading as follows: II L. shiReferring your letter April 17 regarding inquiry from rley Tark, Board has ruled on similar questions on Sever al occasions and as indicated in your letter has alto-''Y ruled on this particular case. Board sees no reason c ange its position. New York Bank has been advised that ,,' -Letter of September 24, 1941, is not in accord with Board's v -Levis, 627 4/25/46 -7."Regarding your specific inquiries, first, exemption Provided by section 8(e) is not applicable; second, arrangeTent is not permissible under section 3(a)(3); and third, there are apparently methods whereby financing could be accomplished without violating Regulation VI such as some Fr those indicated in second full paragraph of Mr. Tark's .1.7etter. If Mr. Tark desires hearing before Board, suggest as.t be arranged through your Bank for some mutually convenlent time.H Approved unanimously. Thereupon the meeting adjourned. Chairman.
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