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1779 A meeting of the Board of Governors of the Federal Reserve waS held in Washington on Saturday, December 2, 1944, at 10:30 PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Szymczak McKee Draper Evans Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinter referred to was taken by the Board: Peciera, 41.01181.y The minutes of the meeting of the Board of Governors of the Reserve System held on December 1, 1944, were approved unani- Letter to Mr. Clark, Vice President of the Federal Reserve of Atlanta, reading as follows: "In accordance with the request contained in your -tinNovember 27, 1944, the Board approves the ap44.,uer of val./Ie/A, effective January 1, 1945, of Thomas Victor present an assistant examiner, as an exam,141:°e' at the Federal Reserve Bank of Atlanta. Please 'se uS as to the salary rate." Approved unanimously. Letter eba.noli to the board of directors of the "North Side Bank", N4)4 3 PennaYlvania, stating that, subject to conditions of member4)5 -1)z.ov ed 1 to 3 contained in the Board's Regulation H, the Board thC bank's application for membership in the Federal Reserve 1780 12/2/44 -2- Shtern n A --nu- for the appropriate amount of stock in the Federal Reserve Bank Of Philadelphia. The letter also contained the following special e°flallient: f. "It has been noted that the bank has surrendered its t ue , iarY powers and that steps are being taken to have s lew accounts now being administered transferred to ID eeding fiduciaries. It has been noted also that the maY possess certain powers which are not being exer' d sed and which are not necessarily required in the con°f a bankin , c business, such as the power to act as tif'et,:7 in certain circumstances. Attention is called to ge fact that if the bank should desire in the future to stmle the exercise of fiduciary powers or to exercise any ; : I Ilers not actually exercised at the time of admission to sh;mtbershiP, it will be necessary uncle: condition of memberfo-P numbered 1 to obtain the permission of the Board bethating so. In this connection the Board understands t)(;:; there has been no change in the scope of corporate ' eaj rs exercised by the bank since the date of its appli1°n for membership." Approved unanimously, together with a letter to Mr. Vtiiliams, President of the Federal Reserve Bank of Philadelphia, readIng as follows: "The Board. of Governors of the Federal Reserve Systhe application of the 'North Side Bank', se4n°n, Pennsylvania, for membership in the Federal Reen-c.;e System, subject to the conditions prescribed in the Boa'clsed letter which you are requested to forward to the d °f Directors of the institution. Two copies of such lej atIci are also enclosed, one of which is for your files the the other of which you are requested to forward to vaw ' ecrcetary of Banking for the Commonwealth of Pennsyl' a, for his information. the b"It is assumed that you 1,111 follow the matter of Of 1,ank.I S bringing into conformity with the provisions Itst 'and the Board's regulations the savings accounts Ittembeci °n Page 16(1) of the report of examination for hip." Letters to the "Gordon State Bank", Gordon, Nebraska, and the 12/2/44 —3— "First State Bank", Morton, Texas, reading as follows: "The Board is glad to learn that you have completed arrangements for the admission of your bank to the Reserve System and takes pleasure in transmitting here. rwth a formal certificate of your membership. It will be appreciated if you will acknowledge reell)t of this certificate." all ,3 Approved unanimously. litlanta Letter to Mr. McLarin, President of the Federal Reserve Bank of reading as follows: th "There is enclosed a copy of a letter received by TrIel Board from Mr. R. L. Hagaman, Jr., Vice President and misst Officer of the Jackson-State National Bank, Jackson, issiPPi dated November 17, 1944, requesting advice ! to vest Whether such bank as trustee of an estate could in-be; funds of' the estate in common stock of the bank to vil;'ssued at an early date to replace preferred stock which btbe retired. It is stated that a few shares of the acr s common stock, along with other assets in a trust frc°11nt, came to the bank as an original inventory item the executor of the decedent's estate and are legally he elZ and that the bank is fully authorized to invest in trustssecurities as are thought to be suitable for the heia "Section 11(a) of Regulation F provides that funds bya national bank as fiduciary shall not be invested b sock of the bank. The fact that some shares of the aes 8 common stock are already legally held among the torets of the trust account would seem to offer no reason the rking an exception to this principle. Furthermore, alatt ik's authority to invest in any securities thought .;'e Would not relieve the bank from criticism, if not tiiticr-4 liability, if the bank should invest additional rcial of the trust estate in such common stock and the lowe' value thereof subsequently should become materially "ItWill be appreciated if you will advise Mr. Hagaman vN,3 _ °,uance with the views above expressed. A copy of s4C C 1782 -4: this letter has been furnished the Comptroller of the `-'11rrency for his information." Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks read- as follows: "There is attached for your information a galley Proof of Form F.R. 34, 1945 edition, now in the hands Of the printer. th "It will be noted that provision has been made for t4 signing of the statements submitted to the Board on be 8,f°rm. It is contemplated that the statement shall s-Lened by the person directly responsible for its preparation. to "Delivery of the supply of forms for 1945 is expected be made at an early date." Approved unanimously. Letter to Mr. W. T. McKeown, Chief, Finance Subdivision, Farm ' el edit A dministration, United States Department of Agriculture, Kansas ssouri, reading as follows: "This Will acknowledge receipt of your letter of abl'uer 28, in which you ask whether it will be agreet° the Board to have consolidated Federal Farm loan abl,,,s and coupons state on their face that they are payanY Federal Reserve Bank as well as at any Federal -/Id- at Bank debe,Sinoe consolidated Federal Intermediate Credit Bank the-: ures now provide on their face for their payment at 811.1,rice of any Federal Intermediate Credit Bank or at ao.iriederal Reserve Bank or branch thereof, and since con, i ated Federal Land Bank bonds and coupons are now payable t 40 "e Federal Reserve Banks and branches, the Board sees why the fact that they are so payable should not r, be Is*eas°11 18 stated on their face provided the use of such language grceable to the Treasury Department." Approved unanimously. Thereupon the meeting adjourned.
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