The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
1226 A meeting of the Board of Governors of the Federal Reserve 8Ystem was held in Washington on Saturday, August 21, 1943, at 11:00 PRESENT: Mr. Szymczak Mr. Draper Mr. 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 herein- after referred to was taken by the Board: Memorandum dated August 19, 1943, from 'Mr. Smead, Chief of the 1114_, sion of Bank Operations, recammending that Mrs. Dorotlly W. Robson 1, "e appointed as a clerk in that Division on a temporary basis ror a Period of not to exceed three months, with basic salary at the rate of 61,44O per annum, effective as of the date upon which she enters Upon the performance of her duties after having passed satistaeto , '--LY the usual physical examination and subject to a satisfactory thect, Prove °f her references, with the understanding that if her services satisfactory during the period of her temporary appointment she 11111 be re commended for a permanent appointment. Approved unanimously. atoll of ae a in Memorandum of this date from Mr. Paulger, Chief of the DiviExaminations, submitting the resignation of William S. Day "senger in that Division, and recommending that it be accepted g 8/21/ 43 -2as of the close of business on August 26, 1943. The resignation was accepted. Letter to the board of directors of the "Irwin-Union Trust Com- 1), Columbus, Indiana, stating that, subject to conditions of mel:aper- 249 "Mbered 1 to 6 contained in the Board's Regulation H and the r°11°Wilig special condition, the Board approves the bank's application tor mellibershiP in the Federal Reserve System and for the appropriate ' 814°114t of stock in the Federal Reserve Bank of Chicago: " - lor to admission to membership, such bank, if it has not already done so, shall charge off or otherwise eliminate estimated losses of 2,005.48, as shown in the rePort of examination of such bank as of July 12, 1943) made bY an examiner for the Federal Reserve Bank of Chicaso.” Approved unanimously, together with a letter to Mr. Young, President of the Federal Reserve Bank of Chicago, reading as follows: al) "The Board of Governors of the Federal Reserve System cjr°7es the application of the 'Irwin-Union Trust Company', ) Indiana, for membership in the Federal Reserve istte sy'-sumbust rn) subject to the conditions prescribed in the enclosed Dire„ : 1 which you are requested to forward to the Board of s Of the institution. Two copies of such letter are )rs of ala;,-" or - end one of which is for your files and the other ta4h1.c. c4 You are requested to forward to the Director, Departl% 1=1 Institutions for the State of Indiana for his il 1,114a t is understood that in the State of Indiana trust Teta deposited in the banking deoartment of a bank are pretarred claims in the event of liquidation of the bank. TherealatZ) n Yo are authorized, in accordance with the general plis°1*lzation previously granted by the Board, to waive com40ticc ee with condition of membership numbered 6 until further beziv"It -s assumed that you will follow the matter of the kellt s Pr°viding adequate supervision of the trust depart : ae "'Id bringing the records and accounting methods of the Partauent into conformity with accepted standards." 122S 8/21/43 -3Letter to Mr. Mercer, Vice President of the Federal Reserve ank of ,xichmond, reading as follows: "This !ird to therefers to your letter of July 26, 1943, with reapplicability of section 22(g) of the Federal RerIbva Act to the vice presidents at the various branches of wle County Trust Company of Maryland, Cambridge, Maryland. t "It is noted that the vice presidents are vested with at1 h"itY I to execute in the name of the Company deeds, reS08 of mortgages and releases of judgments' but do not have :mY aUthority to sign checks or drafts or to perform any other :!E!CUtive functions. It appears from the memorandum submitted :h Your letter that counsel for your Bank has given careful wils,idaration to the question and has reached the conclusion, eh " which You you concur, that the vice presidents in question se°1/1d be as executive officers within the meaning of thetion 22(g). Counsel for your Bank apparently feels that Bo " Lia no distinction between the case presented and the S-2A; s ruling as contained in its letter of December 11, 1940 uu held that a vice president who was authorized, in the dra4bsen— of the president of the bank, to sign deeds, checks, 8 and other documents, should be regarded as an executive °rficere elle). "On the basis of the facts contained in your letter and olos : sUllaa) the question presented appears to be an extremely to ei;, ne, and, in the circumstances, the Board is not inclined the-"lar with the position taken by you and your counsel in to ITiattal" a Jo .0 re in a better posj,tion than the Board : ilf1171 : jUdge th side There is one other point, however, which might be conin connection with this matter which is not discussed tiYour letter or enclosures. In the last report of examinaaPpears that all the vice presidents are members of Artia-via°rY boards at the respective branches. Section 8 of II of the by-laws of the Bank Drovi.des, within certain Or thati°728 as to amounts to any one borrower, that 'the duties silaile advisory boards of the several branch or member banks aocel,i.c°11a1st of passing on discounts or loans to be made or btoak:;ecl bI the Company through its several branch or member leas;• These powers seem to be somewhat analagous to at Tore s°11Ia of the powers of a discount committee, and therevibletl,nu might wish to consider, as an additional factor, the Board's ruling of September 23, 1941, S-353, hold. 111t an officer of a member bank who is also serving as a dire! laiaet ° ,1% and a member of the discount committee, is to be conwith"an executive officer except where he serves in rotation °tiler directors, is applicable to the present case. the Q. 4c.,4-0 8/21/43 -4"As with Yourstated above, the Board is not inclined to differ views in this matter. In order to keep informed o rr the matter, however, it will be appreciated if you will s: , 111ish us with copies of cl.ny further communications on this Subject with the County Trust Company." Approved unanimously. Letter to the Bureau of Supplies and Accounts of the Navy De3 tent reading as follows: 1, "Acknowledgment is made of your letter of August 16, ;/e43, r eference No. A17-1/L10-5(4)(0LP-X), in which you reter t° Your letter of March 16, 1943, and bring to our atellii ti°n another shortage (A10) in a Federal Reserve Bank cetPIant of currency received by Lieutenant (jg) W. B. te_chp°1a, SC, USNR. We have transmitted a copy of your lett Federal Reserve Bank of San Francisco. we, With respect to the previous shortage you reported, the equested all the Federal Reserve Banks to advise us of of 1r Practice as to honoring claims for shortages in packages ov cul ' rancY end subsequently turned jto Na—shipped to member banks vgY Department disbursing officers without piece : 1, csat1on. Replies from the Banks indicated variations, aild1 tee -11usequently the matter was referred to a System commitBankof the Presidents' Conference of the Federal Reserve rorw8 with a view to developing a uniform policy. We have the' rded a copy of your August 16 letter to the chairman of j °111mittee and will communicate with you further as soon Lie committee submits its report." Approved unanimously, together with the f°11°wing letter to Mr. Day, President of the Federal Reserve Bank of San Francisco: "Referriu6 -eacios further to our letter of March 24, 1943, and tame .k11118a, concerning a shortage in a shipment of currency suY the Los Angeles Branch to the First National Trust pe,r,aIringS Bank of San Diego and turned over to a Navy Deencrent disbursing officer without verification, there is 8ilaind a copy of a letter from Admiral Young reporting a ,T; ease) together with our reply thereto. silbje, ' t is our understanding that after discussion of this the- "t at the recent Presidents' Conference held in Chicago, zatter Was referred to the Committee on Operations for 1230 8/21/43 -5and report. Accordingly a copy of Admiral of August 16 is being forwarded to Mr. HughYoung'sletr Leach, chairman of this Committee." Memorandum dated August 18, 1943, from Mr. Smead, Chief of the 1)i7i8i°11 of Bank Operations, recommending that the Board approve the 4aft attached to the memorandum of Form F.R. 105 for use in obtaining el)()Ilts Of condition of State member banks on the forthcoming fall call, e'r4ststing that the Proposed foim would be the same as that used on X .. 30, 1943, 1. 2. With the following exceptions: Schedules A and B, classifying loans and investments, would be omitted; and The present caption of Item 2 of Schedule E would be re'teed from "Deposits of United States Government (including $ war loan account)" to "Deposits of U. S. Govt: War Loan and Series E bond accts. Other 41e14°rand also stated that the Comptroller of the Currency would staila_ 411 r form in the fall call of that office and that the revi8 fA, sat isfactory to the Federal Deposit Insurance Corporation. . A180 attached to the memorandum was a proposed letter to the 41aellt s °f all the Federal Reserve Banks transmitting forms and inet Ile 'biota in onnection with the fall call. Approved unanimously. Thereupon the meeting adjourned. 41q)1, 1Y)1 (1: Secre arya
@FedFRASER