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1566 A meeting of the Board of Governors of the Federal Reserve S7etem was held in Washington on Thursday, December 14, 1939, at 11:00 a.m. PRE8ENT: Mr. Mr. Mr. Mr. Ransom, Vice Chairman Szymczak McKee Draper Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Wyatt, General Counsel Mr. Wingfield, Assistant General Counsel Mr. Cagle, Assistant Chief of the Division of Examinations Mr. Sloan, Federal Reserve Examiner Mr. Chamberlin, Federal Reserve Examiner ALSO PRESEN2: Messrs. G. Ired Berger, Treasurer, NorristownPenn Trust Company, Norristown, Pennsylvania; W. Elbridge Brown, Vice President and Trust Officer, Clearfield Trust Company, Clearfield, Pennsylvania; and John H. Evans, Vice President, McDowell National Bank, Sharon, Pennsylvania. Mr. T. V. Roberts, Assistant Counsel, Office of the Comptroller of the Currency Messrs. Charles B. Aycock, Counsel, and T. A. Conner, Trust Department Review Examiner, of the Federal Deposit Insurance Corporation lArs Berger, as Chairman, and Messrs. Brown and Evans, as Othez. representatives of the Committee on Mortgage Investment Funds th.e Pennsylvania Bankers Association, were present upon invitat1o4 or tkta the Board followins the action taken at the meet in of the 04 November 3, 1939, for the purpose of presenting such further 12/14/39 -2- illrcTmetion as they might desire with respect to the proposal which Ira8 submitted by the Committee some time ago and which had been allisu careful consideration by members of the Board and its staff t4t RsgUlation F, Trust Powers of National Banks, be amended to the operation of common mortgage trust funds. Messrs. Roberts) Aycock and Conner had been invited to be present to hear the PI ' ssentation of the representatives or the Committee on MortInvestment Funds and to make such comments with respect theret°"they saw fit. Mr. Ransom suggested as a method of procedure that the representt 1---ves of the Committee present such arguments for their proDow -‘ as they desired, followins which consideration would be given to 8111111ary of various arguments which had been suggested to the 13(112(1 in support of the position that the suggested amendment to 2 should not be made. br A memorandum of the points covered meses. Berger, Brown and Evans has been placed in the Board's tiles. Ur- %yatt read the arguments against the proposal as conMr. Wingfield's memorandum of May 31, 1939, and stated that t hese had been received by the Board from various sources and that GY aid not necessarily reflect the views of the Board or its start. Conlments were made by the committee representatives on 1568 12/14/39 -3- Of the arguments. It was agreed that a list of the argu- lents should be sent to Mr. Berger, and that his committee would 141110zit to the Board a brief review of such comments with respect tothess arguments as it wished to make. Mr. Ransom inquired of Mr. Roberts whether he had any questio— kid or comments to offer and upon inquiry from him it was made Qlear that the present proposal of the Committee contemplates that Etessts in a fund become ineligible for trust investment in an '414)111at exceeding ten per cent of the outstanding participations, the tlInd would be closed to further investment of trust funds. ' 81 Aycock and Conner stated that they had no comments to make. Mr. Ransom extended an invitation to the visitors attendthe meeting to have luncheon with the members of the Board in the 8 rd'3 134 dining room. It was agreed by the members of the Board tilet th -e cost or these luncheons would be paid by the Board. Thereupon the meeting adjourned. e0ren:E.,_,)11 ecretary. Vice Chairman.
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