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1191 Minutes of actions taken by the Board of Governors of the l'ederai Reserve System on Monday, August 18, 1947. PRESENT: Mr. Mr. Mr. Mr. Mr. Szymczak, Chairman pro tern Draper Evans Vardaman Clayton Mr., Sherman, Assistant Secretary Mr. Morrill, Special Adviser Mr. Thurston, Assistant to the Chairman Minutes of actions taken by the Board of Governors of the l'ederai Reserve System on August 15, 1947, were approved unanimously. Memorandum dated July 312 1947, from Messrs. Thomas and Itnan z-P, Director and Assistant Director, respectively, of the Divi314/14 of Research and Statistics, recommending, for the reasons 8tat e- in the memorandum, that the expense account submitted by Mr. (4", an economist in that Division, in connection with his recent tri„ 60 Ecuador, be approved as submitted. Approved unanimously. Letter to Mr. Rouse, Vice President of the Federal Reserve of New York, reading as follows: "Reference is made to your letter of August 7, 1947, submitting the application of the State Bank of Albany, AlbanY, New York, for approval of the establishment of a branch in the Village of Menands, Town of Colonie, New York. "It is understood that establishment of the proPosed branch has been approved by the appropriate State a uthorities and, in view of your recommendation, the Board of Governors approves the establishment and operation of a branch in the Village of Menands, Town of 1192 8/18/47 -2- "Colonie, New York, by the State Bank of Albany, Albany, New York, provided such branch is established within six months of the date of this letter and with the understanding that Counsel for the Reserve Bank will review and satisfy himself as to the legality of all steps taken to establish the branch. "It is noted that the member bank contemplates the acquisition of a site for the proposed branch and, according to its called report of condition as of June 30, 1947, the total of its investment in bank premises exceeds the amount of its capital stock. Please call to the attention of the management the fact that approval of the Board of Governors must be obtained for any further investment in bank premises if the resulting total exceeds the amount of its capital and that approval of the establishment of the branch does not include approval of the expenditure apparently contemplated for that purpose." Approved unanimously. Letter to Mr. Whittemore, President of the Federal Reserve of Boston, reading as follows: "Receipt is acknowledged of your letter dated July 28, 1947 transmitting copies of your correspondence with the First National Bank and Trust Company of New Haven concerning an account apparently used for the purpose of trafficking in gold. "We have discussed this matter with the Treasury Department, and our feeling is that you might appropriately request the First National Bank and Trust Company to (a) bl'ing the joint statement of the Treasury and the Federal Reserve Board to the attention of the holder of the account, and (b) refrain from any positive action in sup?ort of the gold operations, especially from the grant3-ig of credit or the handling of documents in connection such operations. We do not feel inclined to press the issue to the point of requesting the bank to close or restrict the deposit account." Approved unanimously. 1193 8118/47 -3— Letter to Mr. Herbert V. Prochnaw, Acting Secretary, Federal Adlrieory Council, c/o First National Bank of Chicago, Chicago, Illinois, l eading as follows: ' "The Board has received a copy of a letter from Mr. Charles E. Spencer, Jr., President of the First National Bank of Boston and member of the Federal Advisory Council, suggesting that the Federal Re— serve Banks adopt a policy of purchasing all bills Offered directly to them by commercial banks at a Price to be determined daily or more or less fre— quently by the Federal Reserve Bank of New York. A copy of Mr. Spencer's letter is enclosed, to— gether with copies of memoranda prepared by Mr. Roelse, Vice President of the Federal Reserve Bank of New York, and by the staff of the Board of Gov— ernors commenting upon the proposal. "The Board will appreciate your having this matter placed upon the agenda for the next meeting of the Federal Advisory Council, at which time it would like to receive an expression of the views of the Council with respect to the proposal. A suf— ficient number of copies of Mr. Spencer's letter and of the memoranda commenting upon the proposal are being sent to you to permit distribution to each member of the Council." Approved unanimously. Assis 413Pl'oved: -8"ecretary.
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