The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
1949 A meeting of the Board of Governors of the Federal Reserve Shtem was held in Washington on Tuesday, December 21, 1943, at 11:30 8..ta. PRESENT: Mr. Mr. Mr. Mr. Szymczak McKee Draper 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 hereinreferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the NerA, -, Reserve System held on December 20, 1943, were approved unani- k°1181Y. Memorandum dated December 17, 1943, from Mr. Morrill, recom- Merl dille that the leave without pay granted Mrs. Grace K. Dove, AsBlatant , oupervisor of the Files Section, on November 15, 1943, be tofled / Upon the advice of her Dhysician, for the period December 10 to 31, 1943, inclusive. Approved unanimously. Memorandum of this date from Mr. Morrill, submitting the resillati°r1 of Miss Kay Scott as a clerk in the Secretary's Office, to effective as of the close of business on December 31, 1943, and 4e°11iniencling that the resignation be accepted as of that date with "de duction from her last salary check for 3 days, 4 hours, and N 1950 12 /21/43 -220 autes of overdrawn sick leave. The resignation was accepted as recommended. Telegram to Mr. P. 0. Davis, Director of Extension Service of the Alabama Polytechnic Institute, Auburn, Alabama, reading as follows: "Board of Governors of the Federal Reserve Syshas appointed you director of Birmingham Branch of Fed ederal Reserve Bank of Atlanta for the unexpired portion 2f term ending December 31, L9/45, and will be pleased to have your acceptance by collect telegram." Approved. unanimously. Letter to Mr. 'k)olley, Vice President of the Federal Reserve 13ezilt f' T " ransas City, reading as follows: "In accordance with the request contained in your letter of December 16, 1943, the Board approves the designation of following the as special assistant examiners for the Federal Reserve Bank of Kansas City: Claude Abbott T. L. Brauninger Paul Cartright J. V. Fisler Grover D. Flanagan E. I. Hardesty E. J. Preston Edwin S. hillock James F. Young" Approved unanimously. Letter to the board of directors of the "Huntington Station Iluntington Station, New York, stating that, subject to conditions Mbel ' shiP numbered 1 to 3 contained in the Board's Fegulation H 1.951 12/21/43 -3and the followini, special condition, the Board approves the bank's 84)134°8:Lion for membership in the Federal Reserve System and for the aPPropriate amount of stock in the Federal Reserve Bank of New York: "4. Prior to admission to membership, such bank, if it has not already done so, shall charge off or Otherwise eliminate estimated losses of 3,513, as shown in the report of examination of such bank as of November 1, 1943, made by an examiner for the Federal Reserve Bank of New York." Approved unanimously, together with a letter to Mr. Sproul, President of the Federal Reserve Bank of New York, reading as follows: "The Board of Governors of the Federal Reserve System ahant.1aPproves the application of the 'Huntington Station Huntington Station, New York, for membership in '"e Federal Reserve System, subject to the conditions P trescribed in the enclosed letter which you are requested Tc) vi fc)rwaz'd to the Board of Directors of the institution. copies of such letter are also enclosed, one of which for your files and the other of which you are requested t for to the Superintendent of Banks for the State Jew York, for his information. th It is assumed that you will follow the matter of ofe bank's bringini; into conformity with the provisions .aw . and the Board's regulations the savings accounts ' s ed on page 16 of the report of examination for membe,rs - hip.li Letter to the board of directors of the "Mcilroy Bank & Trust Ntpallyit, Fayetteville, Arkansas, stating that, subject to conditions Of membership kd the numbered 1 to 6 contained in the Board's Regulation H f°1101,7ino• special conditions, the Board approves the bank' 41113lication for membership in the Federal Reserve System and for the 1_952 12/21/43 aPPropriate amount of stock in the Federal Reserve Bank of St. Louis: 117. "8, At the time of admission to membership such bank shall have a paid-up and unimpaired capital of not less than '1.00,000. Prior to admission to membership such bank, if it has not already done so, shall charge off or otherwise eliminate estimated losses of '1.,908.97, as shown in the report of examination of such bank as of November 13, 1943, made by an examiner for the Federal Reserve Bank of St. Louis." Approved unanimously, together with a letter to Mr. Davis, President of the Federal Reserve Bank of St. Louis, reading as follows: "The Board of Governors of the Federal Reserve System ✓ approves the application of the rtf,cIlroy Bank & Trust 1(3mPanY', Fayetteville, Arkansas, for membership in the , Fed' Reserve System, subject to the conditions prescribed the enclosed letter which you are requested to forward • the Board of Directors of the institution. Two copies ' ft such letter are also enclosed, one of which is for your es and the other of which you are requested to forward • the State Bank Commissioner for the State of Arkansas, r his information. "It has been noted that at the special meeting of the stocir, , L nolders which had been called for December 14 it was 1- 1Dected to vote on a proposed change in the corporate title aul he bank. In your telegram notifying us of the bank's wa ssion to membership please advise us whether the title ors actually changed, and, if so, give the exact wording the new title." i 4 Letter to "The Tiffin National Bank", Tiffin, Ohio, reading 4.01lows: 1.913 "This refers to the resolution adopted on June 19, , 13 by the board of directors of your bank, signifying the ank's desire to surrender its right to exercise fidu• cla 17 powers heretofore granted to it. 1953 12/21/43 -5- "The Board, understanding that your bank has been discharged or otherwise properly relieved in accordance with the law of all of its duties as fiduciary, has is!Ixed a formal certificate to your bank certifying that is no longer authorized to exercise any of the fiduelarY powers covered by the provisions of section 11(k) 5 the Federal Reserve Act, as amended. This certificate 18 enclosed herewith. "In this connection, your attention is called to the ct that, under the provisions of section 11(k) of the er Feddal Reserve Act, as amended, when such a certificate llas been issued by the Board of Governors of the Federal isserve System to a national bank, such bank (1) shall no 2flger be subject to the provisions of section 11(k) of ns Federal Reserve Act or the regulations of the Board Governors of the Federal Reserve System made pursuant rereto,(2) shall be entitled to have returned to it any :?curities which it may have deposited with the State or ,Imilar authorities for the protection of private or court rAsts, and (3) shall not exercise any of the powers conI'rred by section 11(k) of the Federal Reserve Act except :1th the permission of the Board of Governors of the FedReserve System." I Approved unanimously. Letter to Mr. Hale, Vice President of the Federal Reserve Bank or san Francisco, reading as follows: re "This refers to your letter of December 11, 1943) te,arding the computation of guarantee fees under Regulato-r;1, V in cases in which the financing institutions wish ' on ; i llow their customary practice of computing interest letV)ans on a 360-day basis. You refer to the Board's of December 4, 1943 (5-712), stating that the corn" put of guarantee fees should be continued on a 365-day 813,4:luring the year 1944. hav 'It is believed that every effort should be made to 10.! financing institutions compute interest on guaranteed : 4 8 on a 365-day basis, if practicable. However, in lo,„?! in which the financing institution insists upon folbet:t"g the practice of computing interest on a 360-day 'Is, the amount of the guarantee fee payable by the 1954 12/2v43 -6-"financing institution to the Reserve Bank should be comPu!,ed on the same basis. In other words, in any such case rising under the April 6, 1943, form of guarantee agree! nit, the amount of the guarantee fee should be the specified percentage of the entire amount of interest payable by the borrower on the guaranteed portion of the loan; and ?/1 cases arising under the May 14, 1942 form of agreement, the rate should be computed so as to obtain a like result." Approved unanimously, together with letters to Colonel Cleveland, Mr. Coolidge, and Lieutenant Griffith of the lAar and Navy Departments and the Maritime Commission, respectively, transmitting copies of Mr. Hale's incoming letter and the above reply. Letter to the Presidents of all the Federal Reserve Banks, reading a 8 f0 11OWS: "In connection with the execution of guarantees under ecutive Order No. 9112 on behalf of the United States aritime Commission, there is enclosed a photostat of a Araetter received by the Board from Mr. R. E. Anderson, Dit°r of Finance, United States Maritime Commission, ! cla ._ued December 15, 1943, authorizing Mr. J. G. Conkey 8° execute certificates of the Maritime Commission and ' etting forth Mr. Conkey's signature." Approved unanimously. Letter to the Comptroller of the Currency, reading as follows: "It is respectfully requested that you place an orwith the Bureau of Engraving and Printing, supplement4g the order of June 15, 1943, for printing of Federal n? 2 rve notes of the 1934 Series in the amounts and destated for the following Federal Reserve anks: 1955 21/43 / 11 -7- 10 50 100 Number of sheets 2,100,000 1,150,000 140,000 210,000 5 10 850,000 500,000 20 100 500 300,000 50,000 2,000 "Denomi— nation New York Atlanta 5 Amount $126,000,000 138,000,000 84,000,000 252,000,000 51,000,000 60,000,000 72,000,000 60,000,000 12,000,000" Approved unanimously. Memorandum dated December 20, 1943, from. Mr. Foulk, Fiscal Aftt, re commending that an assessment of three hundred forty—three thousandths of one per cent (.00343) of the total paid—in capital and 611115/118 (sections 7 and 13b) of the Federal Reserve Banks as of the close „,„ vl business December 31, 1943, be levied to cover the general elLAeritiet, of the Board for the six months' period beginning January 1, ' 1444, and that the Federal Reserve Banks be instructed to pay the 488688slent in two equal instalments on January 3 and March 1, 1944. The following resolution levying the assessment in accordance with the Fiscal Agent's recommendation was adopted by unanimous vote: p„"WHEREAS, Section 10 of the Federal Reserve Act, as Go.;"'ed, provides, among other things, that the Board of to rnors of the Federal Reserve System shall have power pr 4-svY semiannually upon the Federal Reserve Banks, in m41;,ortion to their capital stock and surplus, an assess— Elai sufficiently to pay its estimated expenses and the suc:fies of its members and employees for the half year eding the levying of such assessment, together with ." arid eficit carried forward from the preceding half year, 1956 12/21/43 HEREAS, it appears from a consideration of the estimated expenses of the Board of Governors of the Fed— eral Reserve System that for the six months' period be— ginning January 1, 1944, it is necessary that a fund equal to three hundred forty—three thousandths of one Per cent (.00343) of the total paid—in capital stock lInd surplus (Section 7 and Section 13b) of the Federal tteserve Banks be created for such purposes, exclusive 5 the cost of printing, issuing and redeeming Federal tteserve notes' "NOW, THkREFORE, BE IT RESOLVED BY THE BOARD OF G°VERNORS OF THE FEDERAL RESERVE SYSTEM, THAT: "(1) There is hereby levied upon the several Fed— !al Reserve Banks an assessment in an amount equal to ftree hundred forty—three thousandths of one per cent t:°O343) of the total paid—in capital and surplus (Sec‘ 7 and Section 13b) of each such Bank at the close 0I business December 31, 190. '(2) Such assessment shall be paid by each Federal Reserve Bank in two equal instalments on January 3, 1944, and March 1, 1944, respectively. "(3) Every Federal Reserve Bank except the Federal Res erve Bank of Richmond shall pay such assessment by ansferring the amount thereof on the dates as above pro11",ided through the Interdistrict Settlement Fund to the :deral Reserve Bank of Richmond for credit to the account the Board of G-Ivernors of the Federal Reserve System the books of that Bank, with telegraphic advice to L :tehmond of the purpose and amount of the credit, and ;"e Federal Reserve Bank of Richmond shall pay its as— te8"lent bY crediting the amount thereof on its books 0 the Board of Governors of the Federal Reserve System on the dates as above provided." Thereupon the meeting adjourned. )1/-) Secretary.
@FedFRASER