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1210 A meeting of the Board of Governors of the Federal Reserve SteSYllaHwas held in Washington on Wednesday, August 18, 1943, at 2:00 P.m. PRESFNT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak Draper Evans Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinreferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Federal Reserve System held on August 17, 1943, were approved unani11101. 1sly. Memorandum dated August 13, 1943, from Mr. Coldenweiser, Dil'ector of the Division of Research and Statistics, recommending that ROward S. Ellis be appointed as an Economic Specialist in that Division a t el"rarY basis for a period of not to exceed one year, with basic at the rate of 8,000 per annum, effective as of the date upon 17hich h enters upon the performance of his duties after having passed satisfa et°rilY the usual physical examination, with the understanding that the aPPointment would be subject to his being released from his el4P1.0ym,,. -11L by the University of California and that he would be excused Nilme sired. MbershiP in the Federal Reserve retirement system if he so deThe memorandum stated that, if the work in which Mr. Ellis I 8/18/43 —2— w°111d Participate was not completed within a year, consideration might have to be given to an extension of his appointment. Approved unanimously. Letter to Mr. Fletcher, Vice President of the Federal Reserve Bazit of c leveland, reading as follows: a "This is to acknowledge your letters of August 2 ,V,5, 1943, with enclosures, relative to the decision 7 1 - 'he Ohio State Board of Tax Appeals in the matter of LlYpothecated or assigned deposits. 'We have noted and appreciate your making the ad— justments in the reports of condition of State member banks Re. in Ohio, for example, The First Savings Bank, 7nna, and The Mount Union Bank, Alliance, in order our tabulations may be on a uniform basis. No 8.4decticm will be interposed to your accepting published etatements which include hypothecated deposits in mis— i!llaneous liabilities provided a footnote or memorandum ' n erll along the lines suggested by the Ohio State Banking ePartment is shown in the published statements." 4 Approved unanimously. Letter to Mr. Leach, President of the Federal Reserve Bank of bfllond reading as follows: "There is enclosed a copy of a letter dated August 1943, from Mr. George T. Ellis, Trust Officer of The 8t National Exchange Bank of Roanoke, Roanoke, Virginia, ofgiring whether the wife of a director may purchase shares act ' he bank's stock held in an estate for which the bank se Z.ae trustee, in view of the prohibition contained in assetseo 11(b) of Regulation F against the sale of trust to a bank's directors or their interests. the 'While the Board has not had occasion to construe bstj °rds 'their interests' as including the relations : sa een a director and his wife, it would seem that the lat,of trust assets to the wife would normally be in vio10 n of the well—established principles of sound trust 1212 8118143 ' wlnistration upon which this provision of the Board's '2-egulation is based, because possible conflicts of interest are involved and the interest of the director is such as might affect the exercise of the best judgment of the nlanagement of the bank. "It will be appreciated if you will make an appropriate reply to Mr. Ellis' letter. The writer has not been advised of this reference." Approved unanimously. Letter to Mr. Rounds, First Vice President of the Federal Re"' e Bank of New York, reading as follows: In accordance with the request contained in your lett , er of August 12, the Board approves payment to Horace & Company of5,000, in addition to the ,',500 pre1Y Paid, for the services of Mr. L. B. Altreuter and t_.! associates in connection with the proceedings instit ed to obtain reductions in the assessed valuations of ate real estate owned by your Bank in the City of New York 33 Liberty Street, 97 Maiden Lane and 10 Gold Street, res pectively. , e "It is noted that the only other out-of-pocket exr, 11-!s connected with the proceedings was the payment of to Vermilya-Brown Company, Inc., for their services th,PFeParing an appraisal of the reconstruction costs of ouildings at 33 Liberty Street and 97 Maiden Lane. Approved unanimously. Thereupon the meeting adjourned. 11(-)0-4(1(10 Secreta/4y. Chairman.
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