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Minutes of actions taken by the Board of Governors of the Federal Reserve System on Monday, January 3, 1949. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. McCabe, Chairman Szymczak Draper Evans Vardaman Clayton 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 Federal Reserve System on December 31, 1948, were approved unanimously. Memorandum dated December 30, 1948, from Mr. Sloan, Assistant Director of the Division of Examinations, submitting for approval letters to the following foreign banking corporations calling for the submission of reports of condition as of December 31, 1948: Bankers Company of New York First of Boston International Corporation International Banking Corporation Morgan & Cie. Incorporated The Chase Bank New York, New York Boston, Massachusetts New York, New York New York, New York New York, New York The memorandum stated that the first four corporations were organized under State laws but operate under agreements made with the Board pursuant to the provisions of section 25 of the Federal Reserve Act, and that The Chase Bank was chartered by the Board under the provisions of section 25(a) of the Act. Approved unanimously. -2- 1/3/49 Memorandum dated December 30, 1948, from Mr. Southard, Associate Director of the Division of Research and Statistics, recommending, for the reasons stated in the memorandum, that the travel authorization for Albert O. Hirschman, an economist in that Division, approved by the Board on May 21, 1948, be amended to include a trip from London to Oxford and return. Approved unanimously. Telegram to Mr. Warren F. Whittier, Chester Springs, Pennsylvania, reading as follows: "Board has appointed you Deputy Chairman of the Federal Reserve Bank of Philadelphia for year 1949 and will be pleased to have your acceptance by collect telegram." Approved unanimously. Letter to Mr. McCreedy, Vice President of the Federal Reserve Bank of Philadelphia, reading as follows: "This refers to your letter of December 28 regarding the penalty incurred by the Security Trust Company, Wilmington, Delaware, as a result of a deficiency in its reserves for the period ended November 30. "It is noted that the deficiency resulted principally from the inadvertent failure of the subject bank's correspondent to complete a transfer of funds, that the bank did not detect that the transfer had not been completed until it was too late to provide funds from other available sources, and that it had not had a deficiency for at least two or three years. "In the circumstances, the Board authorizes your Bank not to make the assessment." Approved unanimously. '13 -3- 1/3/49 Telegram to the Presidents of all Federal Reserve Banks reading as follows: "The Board of Governors of the Federal Reserve System under authority of the fourth paragraph of Section 16 of the Federal Reserve Act hereby establishes for the three months' period ending December 31, 1948, the rate of (1) per cent interest per annum on that amount of the Federal Reserve notes of your Bank which equals the average daily amount of its outstanding Federal Reserve notes during such period less the average daily amount of gold certificates held during such period by the Federal Reserve Agent as collateral security for such notes. "Using $ (2) as average daily amount of outstanding notes of your Bank during fourth quarter not covered by gold certificates with Agent, payment to Treasury for last quarter of 1948 will be $ (3) . "Your Bank's pro rata share of $40,000,000 to be deducted in accordance with understanding at December 1 joint meeting of Presidents and Bcard is $ (4) . No statement being given to press with respect to this action. "In press statement to be issued by Board on results of operations of Federal Reserve Banks in 1948, interest payments to Treasury and transfers to reserves for contingencies including additions to reserves for registered mail losses will be shown as in statement attached to Board's letter of December 28, 1948, to President Sproul, copy of which was sent you on December 28. (4) (2) (1) (3) 1.4516 $1,017,495,267 $ 3,722,839.56 $2,634,000 Boston 9,816,000 896,421,279 13,360,036.79 5.9129 New York 4,094,485.75 1,151,760,293 2,924,000 1.4104 Philadelphia 1,466,333,799 3,873,000 5,327,733.03 1.4415 Cleveland 2,551,000 3,613,386.75 1,104,957,545 1.2974 Richmond 1,957,000 2,765,914.88 814,176,188 Atlanta 1.3478 5,624,000 7,800,753.70 2,062,005,623 Chicago 1.5009 2,112,000 2,994,782.01 855,151,297 Louis 1.3894 St. 1,199,000 443,949,543 Minneapolis 1,675,249.07 1.4971 1,829,000 684,399,594 2,608,811.25 1.5123 Kansas City 1,804,000 485,520,305 2,548,148.90 2.0822 Dallas 3,677,000" 594,130,387 3.4529 5,170,835.58 San Francisco Approved unanimously.
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