Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, February 6, 1940, Volume 27, Part 1

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

‘102

A raeeting of the Board of Governors of the Federal Reserve
SYsteni

S held in
Washington on Tuesday, February 6, 1940, at 11:00

PRESENT:

Mr.
Mr.
Mr.
Mr.
Mr.
Mr.

Eccles, Chairman
Ransom, Vice Chairmen
Szymczak
McKee
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 hereinerred to
was taken by the Board:

The minutes of
the meetings of the Board of Governors of the
'-'ecierEti.
Reserve System held on February 2 and February 3 1940, were
lAnalthrtously.
Me111°randmm dated February 3, 1940, from. Mr. Van Fossen, Assist"t Net of
the Division of Bank Operations, submitting a letter
(4ec14114erif 24 from
Mr. Hays, Assistant Vice President of the Federal
"
jp k of Cleveland, Which requested approval by the Board of a
QI1Ne 41 the

Personnel classification plan of the bank to provide for
reeRi,
0.1(1
7blishment of the position of "Expense Ledger and Voucher
" 111 the

19
L9*

Expense Accounting Department, which position was re-

uhe bank's personnel classification plan in error in March
Th

Memorandum recommended that the proposed chance be approved.
A letter dated February 5, 1940,
to Mr. Hays advising of approval of the
change was approved unanimously.




203
2/6/40
Memorandum dated February 3, 1940, from :Mr. Van Fossen, AsSi

start

Chief of the Division of Bank Operations, submitting a letter

dated xanuary
29 from
Mr. Powell, First Vice President of the Federal
48°1've Bank of

approval by the Board of
Minneapolis' which requested

Iellane in
the personnel classification plan of the bank to provide
rctl
'the c
reation of the new position of "Assistant Head of Department"
the
Statistical Department.

The memorandum recommended that the

chang7e be approved.
Approved unanimously.
Letter
}34111c

or _

to Mr. Smith, Assistant Cashier of the Federal Reserve

elevaland, reading as follows:
19,, "Reference is made to your letter of January 19,
tIA
:
u 1 with regard to the reserve for losses on industrial
i;vances carried by the Federal Reserve Bank of Cleveland
the egregat amount of
0,000.
1,8e, Continent upon similar action by the Board of Ditoe b°1's of the Federal Reserve Bank of Cleveland, the
seri'd of
Governors approves the transfer of excess re1r losses on two industrial loans to the reserve
six '
il ed against another loan. It is understood that after
loe„ ediustment total reserves for losses on industrial
"s will be allocated as follows:
Ferro Machine & Foundry Company
23,000
Hamburger Distillery, Inc.
10,000
W. Stith Company
2,500
u niversal Fittings 3c Scaffolding
Col any
4,500
40,000
tl
view of the Treasury Department's interest in in''111 loan operations under section 13b of the Federal
'
100ve Act, the Board's Manual of Instructions Governing
the
'
end ;raParation of Farnings and Expense Reports and Profit
s Statements by the Federal Reserve Banks provides




204
2/6/40
tion
-Page 39 that reserves for estimated losses on indusv"
- -al advances must be considered at all times as appli,cjble to
specific loans. Such reserves are set up with
ePProval of the board of directors of the bank and
•he
Board of Governors. Accordingly, it is felt that
e Procedure suggested in the next to the last pare,"
r 1:1 of your letter, under vthich you would from time
a- time make transfers of the reserves from one loan to
nother would
not be permissible."

Z

Approved unanimously.

tetk or

Letter to Mr, Swanson, Vice President of the Federal Reserve
Minneapolis, reedinf7, as follows:

ti
"This refers to your letter of J'anuary 27 submit01,11,_
rePort of earnings and dividends (form F.R. 107)
'he Powder River County Bank, Broadus, Montana.
ye
"It is noted that the report covers the calendar
31111‘,1939 1 instead of the six months ended December
hieni
s b-1-9a9 as required; that the subject bank became a
19„er of the Federal Reserve System on December 29,
ye
'
'- v; that in
submitting, the report for the calendar
:
11 er the cashier stated that he did not suppose it was
&,—ess rY for him to make a report for last year, pre--matabl
Y because the bank was not admitted until late
or:
he Year; and that the cashier said that the books
`Ihe bank are closed only once a year.
irvo "In the above circumstances and in view of your
'led recommendation, the report for the calendar
1 -939 may in this instance be accepted in lieu of
th ?
e„-silal semi-annual report. It is assumed that you
hEt/7
Dec; called or will call the bank' s attention to the
tatt y that all State bank, members are reouired to subREirdri
-annual reports
li
of
o earnings and dividends, re1e
el.
of whether their books are closed semi-annually
ennually.”




Approved unanimously.

205
2/6/40
-4Mr. Morrill suggested that the Board authorize the payment of the
cost of

the luncheon served to Mr. F. A. Amundson, Acting Commissioner of

141113c8 O
r the State of Minnesota, in the Board's dining room yesterday.
Approved unanimously.
Thereupon the meeting adjourned.

-ee5reac,z,t, IIfl

Secretary.

App