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Minutes of actions taken by the Board of Governors of the 4(1°18.1 Reserve System on Friday, December 9, 1949. PRESENT: Mr. Mr. Mr. Mr. McCabe, Chairman Eccles Draper Vardaman Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Minutes of actions taken by the Board of Governors of the 4deral Reserve System on December 8, 1949, were approved unanimously. Telegrams to the Federal Reserve Banks of New York, Cleveland, ketta °Ild, Atlanta, Chicago, St. Louis, Minneapolis, Dallas, and San -'-teco stating that the Board approves the establishment without el144e by the Federal Reserve Bank of San Francisco on December 6 614c1 bY the Federal Reserve Banks of New York, Cleveland, Richmond, At18.4 ta, Chicago, St. Louis, Minneapolis, and Dallas on December 8, 194 Of the rates of discount and purchase in their existing schedules. Approved unanimously. Memorandum dated December 9, 1949, from Mr. Bethea, Director c/ the Division of Administrative Services, recommending the appoint- t41:Lt or illiam Cobey as a cafeteria helper in that Division on a t11111-rY basis for a period of two months, with basic salary at the ttrs 2,120 per annum, effective as of the date upon which he en- 11Pon the performance of his duties after having passed the usual examination. 1887 12/9/49 Approved unanimously. Memorandum dated December 1, 1949, from Mr. Millard, Di' lector of the Division of Examinations, recommending an increase ill the basic salary of Arthur H. Lang, a Federal Reserve Examiner 14 that Division, from $71600 to $8,oco per annum, effective De- 2), 1949. Approved unanimously. Memorandum dated December 8, 1949, from Mr. Thurston, As- "alat to the Board, recommending an increase in the basic salary Of mi. 88 Margaret N. Muehlhaus, secretary to Mr. Thurston, from $4,2on ‘' to $4,325 per annum, effective December 11, 1949. Approved unanimously. Memorandum dated December 5, 1949, from Mr. Riefler, Assistwt to the Chairman, recommending an increase in the basic salary or mi 88 Catherine L. Schmidt, secretary to Mr. Riefler, from $3,700 to Y3,825 per annum, effective December 11, 1949. Approved unanimously. Letter to the board of directors of the "Alabama City Bank GM8den, Alabramplu, Gadsden, Alabama, stating that subject to cwis of membership numbered 1 and 2 contained in the Board's 4tion H and the following special condition, the Board approved the 8 application for membership in the Federal Reserve System 44d ro r the appropriate amount of stock in the Federal Reserve Bank 1888 -3Of Atlanta: 3 At the time of admission to membership, such bank shall have a paid-up and unimpaired capital of not less than $100,000." The letter also contained the following special comment: "It has been noted that the bank is not authorized to exercise trust powers, although it is actually administering two trusts at the present time. It is understood that the approval of State authorities for the administration of these trusts will be obtained and that the bank does not contemplate seeking or accepting any additional trust business. The application has been apProved on the same basis as if the bank were not exercising fiduciary powers and attention is called to the tact that, under the provisions of condition of membership numbered 1, if the bank should desire in the future to exercise trust powers other than to the extent necessary in connection with the two accounts now being administered, it will be necessary to obtain the perof the Board of Governors before doing so. "It will also be necessary, under condition of membel'shiP numbered 1, to obtain the permission of the Board Of Governors to exercise any powers possessed by the bank which are not now being exercised and which are not necessal'ilY required in the conduct of a banking business, such the power to issue bonds. In this connection, the zoard understands that there has been no change in the aope of corporate powers exercised by the bank since the te of its application for membership." r Approved unanimously, for transmission through the Federal Reserve Bank of Atlanta. Letter to the board of directors of "The Washington Loan and ktati 14 Company", Washington, Georgia, stating that subject to condition. 8 ofmembership numbered 1 and 2 contained in the Board's "ion H, the Board approved the bank's application for member1:t. the Federal Reserve System and for the appropriate amount 12/9/49 -4- cr stock in the Federal Reserve Bank of Atlanta. Approved unanimously; for transmission through the Federal Reserve Bank of Atlanta. Letter to Mr. Millard, Director of the Division of Exam11144:ti°115, reading as follows: "Section .240 of the Revised Statutes of the United States (Section 21 of the Federal Reserve Act), as amended, provides that the Board of Governors of the Pederal Reserve System, at least once each year, shall order an examination of each Federal Reserve Bank. "In accordance with this provision of the law the Board orders that at least one examination of each or the 12 Federal Reserve Banks be made during the year 9)0, and the Board authorizes and directs you to instiUte and conduct such examinations at such time or times lie may seem advisable in your judgment." 1 Approved unanimously. Letter to Mr. Kimball, Vice President of the Federal ReBank of New York, reading as follows: "Reference is mAde to a letter from the Buffalo Brarleh dated November 29, 1949, in which advice was received that it appears expenses for certain functions at the Branch will exceed the 1949 estimates as follows: , Function Amount "irovision of Personnel $4,636 6,0)8 /leral Service 670 surance 2,404 tfiscount and Credit QUrrency 14,708 and Coin Aladiting 4,380 "The Board accepts the revised figures as submitted, rld ePpropriate notations are being made in the Board's ' ecords." t Approved unanimously. 1_890 4'9/49 1' Telegram to Mr. Knoke, Vice President of the Federal ReBI've Bank of New York, reading as follows: "Your wire December 8. Board approves granting of a.loan or loans by your Bank to Banco Nacional de Costa Rica not to exceed $1,988,000 in the aggregate at any one time outstanding on the following terms and c onditions: (A) Such loan or loans to be made up to 98 per cent of the value of refined gold bars held in your vaults as collateral; (B) Each such loan or renewal thereof to run for 90 days but no loan or renewal thereof to mature later than 180 days after the date of the first such loan and in no event later than June 30, 190; (C) Each such loan or any renewal thereof to bear interest from the date such loan is made or renewed until paid at the discount rate of your Bank in effect on the date on which such loan or renewal is made; (D) All amounts advanced or repaid to be in round amounts of not less than $100,000. "It is understood that the usual participation vill be offered to the other Federal Reserve Banks." Approved unanimously. Memorandum dated November 29, 1949, from Mr. Clayton No 111111e4ding, for the reasons stated therein, that no report be taa.tle 141rsuant to a request from the Staff Director of the Senate krati 'flg. and Currency Committee for a report on an Amendment (in 41e tiature of a substitute) to the bill S. 281, Economic Expansion A t Qf 1949, unless a special request is later received. Approved unan 766 10" . .; Chairman. 1161k Secretary.
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