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1207 A meeting of the Board of Governors of the Federal Reserve 85r8teal was held in Washington on Tuesday, August 31, 1937, at 3:30 P. ite PRESENT: Mr. Ransom, Vice Chairman Mr. Szymczak Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Consideration was given to each of the matters hereinafter retell'ad to and the action stated with respect thereto was taken by the %sal: Telegram to Mr. Martin, President of the Federal Reserve Bank Or P4. Louis, reading as follows: "In accordance with your recommendation of August 25, 2 1 37) the Board will interpose no objection under the con: Ition of membership to the expenditure by 'Citizens Bank', nartford, Kentucky, of approximately 44,000 for the pur,?Ilase of the building in which the bank has its quarters. 1lease advise the bank accordingly." Approved unanimously. Letter to Mr. Parker, First Vice President of the Federal Reeelle Bank of Atlanta, reading as follows: "This refers to your letter of August 13, 1937, re11 ! 4 Iting to the right of 'The First National Bank of Miami', 4. 4841, Florida, to exercise fiduciary powers. It appears baat on May 27, 1924, the Board granted the bank a permit !xi-titling it to exercise full fiduciary powers, but that bank has never exercised any of such powers. The bank trIcAlires what additional requirements must be complied with 'III order to complete its qualifications to act in a fiduciarY capacity. "A permit granted pursuant to the provisions of secti ,on 11(k) of the Federal Reserve Act is for an indefinite It has not been the Board's practice to require that El bank to which such a permit is granted thereupon formally 1208 8/31/37 0•11.,.• accept the permit or otherwise evidence an acceptance. Further, it is the Board's opinion that when a bank applies tor such a permit and it is granted by the Board unconditionally, the grant of authority to exercise the powers named in such permit is complete and it is immaterial whether the bank thereupon evidences an acceptance of the permit. Accordingly, the Board is of the opinion that it is not necessary for The First National Bank of MiRMi to obtain a new permit in order to exercise fiduciary powers. "However, before undertaking to exercise such powers, the bank must comply with the requirements of section 11(k) of the Federal Reserve Act and section 13 of Regulation F concerning the deposit of securities with the State authorities, and also with the requirements of section 6 of Regu"ion F concerning the establishment of a separate trust department and related matters." 1 Approved unanimously. Telegram to Mr. Peyton, President of the Federal Reserve Bank Cluj naeapolis, reading as follows: "Your telegram August 28, re holding securities in ollatody for F.D.I.C. as receiver of a member bank. Matter hae been discussed informally with Mr. Tefft of F.D.I.C. It is understood that F.D.I.C. is considering the whole matter of handling of securities of banks of which it is l'aceiver and that proposed plans will be discussed with the Board before adoption. Pending developments and furtl?.ar advice, Board will interpose no objection in the circumstances to the Reserve Bank continuing to hold securities in custody for account F.D.I.C. as receiver of a Member bank." Approved unanimously. There was submitted a recommendation that the Board authorize thepayment of vouchers totaling $8,207.41, covering rent due for the eDace o ccupied by the Board in the Washington and Shoreham Buildings (11111118 the month of August, 1937. Approved unanimously. _3_ There was submitted a recommendation, -.Nhicla had been approved by 41, Personnel Committee, that the Board authorize the purchase of s, as listed in purchase order No. 2055, at a total cost of '5 Approved unanimously. Thereupon the meeting adjourned. ASE'l stant Vi N Chairman. Secretary.
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