The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
162 A meeting of the Board of Governors of the Federal Reserve SYtem was held in Washington on Thursday, February 13, 1941, at 11:30 ad " PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak Davis Draper 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 hereinafter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Peda" 41 Reserve System held on February 12, 1941, were approved unaninloUsly. Uemorandum dated February 4, 1941, from Mr. Carpenter, Assist44t secretary, recommending, for the reasons stated in the memorandum, (1) that, effective February 16, 1941, and subject to their passing 4.tieractoray the usual physical examination, Frances P. Campbell flc1 Ruth Ellen Dewey be appointed on a permanent basis as junior file el"ks in the Office of the Secretary, each with salary at the rate or '4)440 per annum; and (2) that the salaries of Vivian Haislip and 4ategerY M. Davis, junior file clerks in the Secretary's Office, be i/lereased from $1,500 to 81,560 and from 81,440 to 81,500 per annum, Nspectively, effective February 16, 1941. Approved unanimously. 1.63 2/13/41 —2— Memorandum dated February 10, 1941, from Mr. Nelson, Assist— ant Secretary, recommending, for the reasons stated in the memorandum, (1)that Grover Charles Knight, Morton Peter Sarfaty, and James Daniel Craw °rd be appointed for an indefinite temporary period as elevator °Peratore in the Building Operation and Maintenance Section of the Secreta, .—,s -J Office, each with salary at the rate of $1,200 per annum, effective as of the date upon which they enter upon the performance °f their duties, after having passed satisfactorily the usual physical %tartan . atl°n; and (2) that Lawrence A. Kerns and Robert M. Garner, ''fator operators, be promoted to the position of guard in the Build— ing OPsration and Maintenance Section of the Secretary's Office for ati . erinite temporary period and that their salaries be increased troM , ,400 to t1'11 380 per annum, effective February 16, 1941. Approved unanimously. Memorandum dated February 13, 1941, from Mr. Wyatt, General Colta se-Ls recommending, with the concurrence of Governor Szymczak, that Walter Paul be transferred from the office of Governor Szymczak to the 0'4, rice of General Counsel as a clerk, with no change in his pres— erit sea arY at the rate of $1,560 per annum, effective as of February 131 1941. Approved unanimously. t Letter to Mr. Fleming, President of the Federal Reserve Bank e eland, reading as follows: 164 2/13/41 -3"As requested in your letter of February 10, the Board approves the designations of Clyde Harrell, J. L. Jauquet and G. E. Bridge as special assistant examiners, On the understanding that they are not to be transferred Permanently to examination work without the Board's approval." Approved unanimously. Letter to Mr. Powell, First Vice President of the Federal Re"' e Bank of Minneapolis, reading as follows: "The Board of Governors approves the changes in the 1?ereonnel classification plan of your Bank as requested 34 Your letter of December 10, 1940, and as amended in Your letter of February 5, 1941." Approved unanimously. Letter to Mr. Sanford, Secretary of the Federal Reserve Bank °t New York, reading as follows: to your letter of February 7, 1941, the Board u rd of Governors approves the reappointment of Messrs. ' .,rman K. Beach, Arthur G. Nelson, Edward J. Noble, MIH. Pouch, and Francis B. Reynolds as members of the " T Vuustrial Advisory Committee for the Second District to serve for terms of one year each beginning March 1, 1941." Approved unanimously. Letter to Mr. West, Secretary pro tempore of the Federal Reserve .1k4k of '3an Francisco, reading as follows: Boa "Referring to your letter of February 6, 1941, the shard of Governors approves the reappointment of Messrs. 111112tIon Crandall, Edmund Hayes, Henry D. Nichols, and p- ter A. Starr as members of the Industrial Advisory nmmlttee for the Twelfth District to serve for terms 'I one year each beginning March 1, 1941. "It is noted that consideration is being given to 1_65 2/13/41 -4- "the appointment of a successor to Mr. Stuart L. Rawlings who died in November 1940." Approved unanimously. Memorandum dated February 11, 1941, from Mr. Bradley, Assistant Chief of the Division of Security Loans, stating that the Securities and Exchange Commission, at the request of certain brokers and dealers in securities, had decided, provided the Board of Governors 114c1no objection, to postpone the effective date of its rules with reeNtt to the hypothecation of customers securities so that these rules would 1_ uecome effective on February 24, 1941, and that it was recomterlded that the effective date of Amendment No. 4 to the Board's Regtaatio,, " u, Which related to the same subject and which was to become effective 111 .1.es, simultaneously with the Securities and Exchange Commission be Postponed until February 24, 1941. The following resolution was adopted by unanimous vote: RESOLVED, That the effective date of Amendment No, 4 of Regulation U which was to have become effective February 17, 1941 is hereby postponed until February 24, 1941, but any bank may, at its option, conduct its operations in accordance with such amendment at any time prior to that date as permitted under the original amendment. In connection with the above action unanimous approval was also given to a draft of statement to the press, and to a telegram to the Presidents of all Federal Reserve Banks requesting them to advise all interested persons in their respective districts of the change in the effective date of amendment No. 4 to Regulation U. 166 2/13/41 —5— Letter to the board of directors of "The Bank of Elkton, illecrporated", Elkton, Virginia, stating that, subject to conditions (If Illembership numbered 1 to 3, inclusive, contained in the Board's Reffio bq-Lation H, the Board approves the bank's application for member— s/lb, ln the Federal Reserve System and for the appropriate amount stock in the Federal Reserve Bank of Richmond. The letter also contained the fol— lowing special comment: "It appears that the bank possesses certain powers which are not being exercised and which are not neces— arllY required in the conduct of a banking business, such as the power to guarantee the payment of bonds. Attention is invited to the fact that if the bank de— !ires to exercise any powers not actually exercised at 'ale time of admission to membership, it will be neces— !ar7 under condition of membership numbered 1 to obtain 14:1e. permission of the Board of Governors before exer— ?lslng them. In this connection, the Board understands Talat there has been no change in the scope of the cor— ',ate powers exercised by the bank since the date of aPplication for membership." Approved unanimously, together with a letter to Mr. Leach, President of the Federal Reserve Bank of Richmond, read— ing as follows: "The Board of Governors of the Federal Reserve Sys— approves the application of 'The Bank of Elkton, In— ; °rPoratedt, Elkton, Virginia, for membership in the , ederal Reserve System, subject to the conditions pre— :cribed in the enclosed letter which you are requested forward to the Board of Directors of the institution. ° copies of such letter are also enclosed, one of which t8 for your files and the other of which you are requested forward to the Commissioner of Banking for the Common— "lealth of Virginia for his information. "Since the amount of estimated losses shown in the ' l ePort of examination for membership is relatively small, teni 167 • 2/13/41 -6- "the usual condition of membership requiring elimination of losses has not been prescribed. It is assumed, however, that proper provision for losses will be made as a matter of sound banking practice." Letter to Mr. Worthington, First Vice President of the Federal Bank of Kansas City, reading as follows: "Reference is made to Mr. Woolley's letter of February 4, 1941, and enclosures, with respect to the absorption ( 6t the Bank of Jefferson, Jefferson, Oklahoma, by the Grant ()linty Bank, Medford, Oklahoma, effected as of the close of business December 28, 1940. "On the basis of the information submitted, the Board ?oneurs in the opinion of counsel of the Reserve Bank that the transaction has not resulted in any change in the gen!!'a1 character of the assets of the Grant County Bank or 'ne scope of its powers within the meaning of condition of raemberehip numbered 1. The Board, therefore, will inter, e no objection under the conditions of membership to the cw sorption." Approved unanimously. Letter to Mr. Young, President of the Federal Reserve Bank of °atoll ) reading as follows: Reference is made to your letter of February 3, 1941) submitting a request of the Hadley Falls Trust Comlal efinanclY) Holyoke, Massachusetts, for approval of a plan for „_ ing its main office bank building which is owned the Hadley Falls Realty Trust, a wholly owned subsidttrY of the trust company. It is understood that under j"e Plan the subsidiary will call and retire at par as of 1) 1941, the entire issue of first mortgage 5.-1- per Cent t bonds due June 1, 1957, and to accomplish this the c°mPanY will make a loan to the subsidiary secured nue a first mortgage on the banking property for the amount aeseary to cover the total par value of the bonds outste on Ving as of June 1, 1941, the mortgage to be payable alm'lemand, to bear interest at the rate of 2 per cent per j"11m) and to provide for annual payments of 2 per cent -k the cost of the building or about ,112,600. 168 2/13/41 -7- "In view of your recommendation and the information submitted, the Board will interpose no objection under : the.conditions of membership to the transaction provided is approved by the appropriate State authorities. Since the transaction contemplates the retirement of all of the outstanding bonds of the building company, it does not appear necessary to give further consideration to the Purchase of $25,000 of the bonds by the bank referred to In your letter of December 9, 1940, and Mr. Paulger's rePly t of December 17. It is assumed, however, either that he P25,000 of bonds which were purchased by the trust ?°mPsnY for ,”.7,500 will be retired at the cost price to -ate bank, or if retired at par, that the excess received Tier cost will be used to write down the bank's investment ln the property." Approved unanimously. Memorandum dated January 30, 1941, from Mr. Carpenter, Assistarlt 8e0retary, submitting drafts of entries with respect to the policy 4ctions taken by the Board during the year 1940 for inclusion in the l'ec(31%ci maintained by the Board in accordance with the provisions of the -4st paragraph of section 10 of the Federal Reserve Act. The drafts of entries were approved unanimously. Thereupon the meeting adjourned. Chairman.
@FedFRASER