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1_940 A meeting of the Board of Governors of the Federal Reserve $)retem — was held in Washington on Tuesday, December 11, 1945, at 11:00 4.14. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman McKee Draper Evans Mr. Carpenter, Secretary Mr. Connell, General Assistant, Office of the Secretary Mr. Morrill, Special Adviser Mr. Thurston, Assistant to the Chairman The action stated with respect to each of the matters herein— referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the vral Reserve System held on December 101 1945/ were approved unani— Memorandum dated December 5, 1945, from Mr. Paulger, Director the * . plvlsion of Examinations, recommending that Robert J. Schoenhoff, Who has , 1 'een on military leave, be reinstated in his position as an 4431stan i. -- Federal Reserve Examiner, Division of Examinations, with or at the rate of $31530 per annum, effective as of the date upon he the u enters upon the performance of his duties after having passed 811a1 Physical examination. Approved unanimously. 441, Telegram to Mr. McLarin, President of the Federal Reserve °f Atlanta, stating that, subject to conditions of membership 1941 12/11/45 —2/11114bered to 3 contained in the Board's Regulation H, the Board ap- 13r°1 ' .ee the application of the "American Bank," St. Joseph, Tennessee, tor me mbershiP in the Federal Reserve System and for the appropriate 841°Unt of stock in the Federal Reserve Bank of Atlanta. The telegram requested that the Federal Reserve Bank advise the applicant bank of the Bo ard's approval of the application and conditions of membership Pres., vrIbed, together with necessary instructions as to the procedure tor a ccomplishing membership, and stated that a letter containing de— ' advice regarding such approval would be forwarded to the ap— b-ank through the Reserve Bank. tollo . wing additional statement: The telegram contained the "Following comment to be included in letter to ap— Plicant bank: "It has been noted that the bank is author— ized to exercise fiduciary powers but is not doing so at present and that the bank possesses certain other powers which are also not being exercised and which are not necessarily required in the conduct of a banking business, such as the powers to guarantee the payment of bonds and mortgages and to guarantee titles to real estate. Attention is called to the fact that if the bank should decide in the future to exercise fiduciary Powers or any powers not actually exercised at the time of admission to membership, it will be necessary under condition of membership numbered 1 to obtain the permission of the Board of Gov— ernors before doing so. In this connection, the Board understands that there has been no change in the scope of corporate powers exercised by the 1 ,2ank since the date of its application for mem— uership.” Approved unanimously. 1.942 12/11/45 -3- Letter to the Federal Deposit Insurance Corporation reading 48 follows. "Pursuant to the provisions of section 12B of the Federal Reserve Act, as amended, the Board of Governors ( , .) f the Federal Reserve System hereby certifies that the Yon County State Bank, Rock Rapids, Iowa, became a memer of the Federal Reserve System on December 7, 1945, aad is now a member of the System. The Board of Governors ° ,t1, the Federal Reserve System further hereby certifies 4 eri sinliloponnection with the admission of such bank to 1 :2 in the Federal Reserve System, consideration giVen to the following factors enumerated in subsec°n (g) of section 12B of the Federal Reserve Act: 1. The financial history and condition of the bank, 2. The adequacy of its capital structure, 3. Its future earnings prospects, 4. The general character of its management, 5. The convenience and needs of the community to be served by the bank, and 6. Whether or not its corporate powers are consistent with the purposes of section 12B of the Federal Reserve Act." t Approved unanimously. Or Telegram to Mr. Young, President of the Federal Reserve Bank Ohi cago, reading as follows: will "Relet December 7. In view your recommendation Board interpose no objection to proposed change in location cpro 't the American State Bank, Milwaukee, Wisconsin, and the " P ed investment of $450,000 in banking premises prod the capital increase described is effected." Approved unanimously. tiirlit Telegram to Mr. Mangels, Vice President of the Federal Reserve (4 San Francisco, reading as follows: "Relet December 5. In view of your recommendation 1943 12/w45 —4"Board approves establishment and operation of a branch Orinda, California, by American Trust Company, San rrancisco, California, with understanding that counsel for the Reserve Bank will review and satisfy himself as to legality of all steps taken to establish branch." Approved unanimously. Letters prepared for the signature of Chairman Eccles to Mr. Patter -8°n, Secretary of War, and Mr. Hensel, Acting Secretary of the 417. The letter to Mr. Patterson read as follows: "Your letter of November 30 commending the Board ?f Governors and the Federal Reserve Banks for the serv— ' Lees they have been privileged to render to the War De— partment in facilitating and expediting war production °rough the V loan program will be a source of genuine P"atification to all of those in the Reserve System who b e had a share in discharging this responsibility. On T.ehalf of the Board of Governors and the Reserve Banks, ;tvash to acknowledge and thank you for this expression. "are not unmindful of the fact that the success of this xylerta1th1g has depended largely upon the close coopera— _? 1 11 and exceptionally able assistance which we have re71ved from your own office and from the officers, per— nallY known to you, with whom we have been associated " developing and carrying out the program. hi "In accordance with your suggestion, I take particular 'ilseasure in sending copies of your letter to members of e Board and our staff, as well as to the Federal Reserve zaaks.n The letter to Mr. Hensel read as follows: 0„ "On behalf of all of the members of the Board and el- the staff who have shared in the responsibility for varrYing out the V loan program, I wish to thank you for " c?ur letter of December 4 in which you express the appre— tlation of the Navy Department for the services this Sys— e has been privileged to render in the establishment 4d administration of Regulation V. 1944 12111/45 —5— . "four words of commendation are most gratifying and 17111 be deeply appreciated by all who are identified with the Federal Reserve System. We recognize that the suc— cessful operation of the program and the contribution thus mMe to the war effort has depended to a very great extent Upon the splendid cooperation and outstandingly able as— 9.stance which officials and officers of the Navy, asso— ciated in this task, have unfailingly provided. "While I note that you are also addressing letters to the individual Federal Reserve Banks, I am taking the liberty of distributing, not only to the Board and staff here but also to the Federal Reserve Banks, copies of your letter addressed to MB as Chairman of the Board of Gover— riors.n Approved unanimously, together with a letter to the Presidents of all the Fed— eral Reserve Banks transmitting copies of the letters from Messrs. Patterson and Hensel and the Board's replies. Letter to the Comptroller of the Currency reading as follows: , "It is respectfully requested that you place an or— the Bureau of Engraving and Printing, supplement— fig the order of June 9, 1945, for printing of $75,000,000 : f Federal Reserve notes of the 1934 Series for the Fed— al Reserve Bank of San Francisco in the $50 denomina610/1.it Approved unanimously. Memorandum from Mr. Carpenter dated December 6, 1945, recomrkerViin, g certain minor changes in the statement of responsibilities tdire tors of Federal Reserve Banks which is sent by Chairman Eccles to eaeh new director of the head offices of Federal Reserve Banks. The statement in its revised form was approved unanimously. Memorandum dated December 5, 1945, from Mr. Thomas, Director 1945 -6qt heDivision of Research and Statistics, submitting a voucher for —mularsement for travel and other expenses incurred by C. Richard ''ani, an Economist in that Division, in the discharge of official dirty from November 14 to November 16, 1945. The memorandum recommended 41113?°M1 of the voucher and stated that special consideration of the by the Board was necessary because Mr. Youngdahl had to travel Olicago to Washington by roomette due to the unavailability of less e3cpensive Pullman accommodations. Approved unanimously. Thereupon the meeting adjourned.
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