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871 A meeting of the Board of Governors of the Federal Reserve SYstem was held in Washington on Friday, June 11, 1943, at 11:00 a.mPRESENT: Mr. Mr. Mr. Mr. Mr. Ransom, Vice Chairman 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 herein"ter r eferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Peci eral Reserve System held on June 10, 1943, were approved unani11101181Y. Telegrams to Messrs. Paddock and Leach, Presidents of the Federal Reserve respectively, Mr. Frazer, Banks of Boston and Richmond, 8ecretary pro tern of the Federal Reserve Bank of Atlanta, Mr. Dillard, Vice pr,,eictent of the Federal Reserve Bank of Chicago, Mr. Stewart, Secretary of the Federal Reserve Bank of St. Louis, Mr. Powell, First litee President of the Federal Reserve Bank of Minneapolis, Mr. Gilbert, President of the Federal Reserve Bank of Dallas, and Mr. Hale, Vice Pres ident of the Federal Reserve Bank of San Francisco, stating that the toarci approves the establishment without change by the Federal Re- 4tIre tarik of San Francisco on June 8, by the Federal Reserve Bank of Atlatita On June 9, by the Federal Reserve Banks of Richmond, Chicago, 872 6/11/43 -2- St$ L°1-li8, Minneapolis, and Dallas on June 10, 1943, and by the Fed"al Reserve Bank of Boston today, of the rates of discount and pur- chase in their existing schedules. Approved unanimously. Letter to "The Montrose National Bank", Montrose, Colorado, reading as follows: in "This refers to the resolution adopted on March 9, ,433 bY the board of directors of your bank, signifying t17 cf,,,,bank's desire to surrender its right to exercise fi--.L.arY powers heretofore granted to it. actun7he Board, understanding that your bank has never has-7-4-Y accepted or undertaken the exercise of any trust, th Issued a formal certificate to your bank certifying ch,,a it is no longer authorized to exercise any of the fioi'erY powers covered by the provisions of section 11(k) 'he Federal Reserve Act, as amended. This certificate ' 4 enclosed herewith. ,"In this opnnection, your attention is called to the tact peci tha4-, u under the provisions of section 11(k) of the haseral Reserve Act, as amended, when such a certificate been Re:esissued by the Board of Governors of the Federal 1.011 ystem to a national bank, such bank (1) shall no th,„g!,r be subject to the provisions of section 11(k) of 0e Federal Reserve Act or the regulations of the Board thsZernors of the Federal Reserve System made pursuant sec-1.,;:22 (2) shall be entitled to have returned to it any simii16ies which it may have deposited with the State or tr4star authorities for the protection of private or court fe-er !,2 and (3) shall not exercise any of the powers conbY section 11(k) of the Federal Reserve Act, except eral he permission of the Board of Governors of the FedReserve System." Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks, g as follows: 1942 "Referring to the Board's letter of November 14, gum :,_°-586, you will find enclosed copy of a memoran,kinm the Navy Department dated June 7, 1943, signed 873 6/4/43 -3"by William A. Coolidge, Chief of Finance Section, supPlementing Mr. Mitchell's memorandum of November 9, 1942, personnel attached to the Finance Section of the ' 41e Na— vy Department." Approved unanimously. Letter to Mr. Cameron, Assistant Cashier of the Detroit Branch °t the Federal Reserve Bank of Chicago, reading as follows: 1 "This refers to your letter of June 7, 1943 en:"ing a couy of a letter from Mr. W. E. Blakeley, Vice Pcl'esident, National Bank of Detroit, Detroit, Michigan, tned June 4, 1943, requesting a more detailed definiBZ"41 of the term 'out-of-pocket expenses' as used in the 4rCIIS telegram of May 12, 1943 with respect to commit"Lent and other fees on Itegulntion V loans. to de,The Board does not deem it advisable to undertake tr _k J-211e precisely the items of expent,e which are to be 02Led as out-of-pocket expenses since, as indicated In isg' letter of ' May 27, 1943 to Mr. Chalfont, the questicn ot .re which must ordinarily be determined in the light ite he facts of particular cases. This is true of such gerinis of expense as postage and telephone charges. In par al, expenses specially incurred in connection with pockleular transacticns should be considered as out-ofas ret expenses; and, accordingly, such overhead expenses be ent, heat, light, and salaries of employees would not so considered." Approved unanimously, together with letters to Lieutenant Colonel Paul Cleveland of the War Department, Mr. William A. Coolidge of the Navy Department, and Lieutenant B. B. Griffith of the Maritime Commission, transmitting copies of the incoming letter, with Its enclosure, and the above reply. M ,, Nge e'°Pandum dated June 5, 1943, from Mr. Clayton, submitting a - from Chairman Eccles that Mr. Day, as Chairman of the Presi- OonP 4. erence, be asked to place on the agenda of the Conference for g with the Board at the forthcoming meeting the question of inthe research program at each Federal Reserve Bank the 874 6/11/43 —4— aeellmmlation of data to show the financial requirements of industrial e°1.1Porations for reconversion from war production to civilian proflCtj including information as to the portion of the funds required e°1 'c°nversion that should be met by bank credit and the portion that 84111d be supplied by investment funds. Approved unanimously. Thereupon the meeting adjourned. hc) Secretary.
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