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938 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Wednesday, June 18, 1947. PRESENT: Mk. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Szymczak Draper Evans Vardaman Clayton Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Chairman Minutes of actions taken by the Board of Governors of the Federal Reserve System on June 17, 1947, were approved unanimously. Memorandum dated June 13, 1947, from Mr. Bethea, Director °f the Division of Administrative Services, recommending that the ' t esignation of Joseph T. Glotfelty, Jr., an operating engineer in that Division, be accepted to be effective, in accordance with his l'equest, at 11:00 a.m. on June 13, 1947, with the understanding that lumP sum payment would be made for annual leave remaining to his credit as of that date. Approved unanimously. Letter to the Federal Deposit Insurance Corporation reading 43 follows: "Pursuant to the provisions of section 12B of the Federal Reserve Act, as amended, the Board of Governors of the Federal Reserve System hereby certifies that the Hereford State Bank, Hereford, Texas, became a member of the Federal Reserve System on June 16, 1947, and is 939 6/18/47 -2- "now a member of the System. The Board of Governors of the Federal Reserve System further hereby certifies that, in connection with the admission of such bank to membership in the Federal Reserve System, consideration was given to the following factors enumerated in subsection (g) of section 12B of the Federal Reserve Act: 1. The financial history and condition of the bank, 2. The adequacy of its capital structure, 3. Its future earnings prospects, 4. The general character of its management, 5. The convenience and needs of the community to be served by the bank, and 6. Whether or not its corporate powers are consistent with the purposes of section 12B of the Federal Reserve Act." Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks readas follows: "A copy of Custodian Bulletin No. 1185 issued by the Reconstruction Finance Corporation in connection with the rendition of monthly custodian expense vouchers and addressed to all Custodian Banks has recently come to our attention. It is noted that the Bulletin requests that all future vouchers include only a statement of such expenses as are indicated on a form attached to the Bulletin, but also provides that 'working papers and other data supporting your computations of these charges should be retained in your files for such periodical test check or audit by representatives of the Corporation as may be appropriate'. "In connection with this latter instruction, it is assumed that your Bank will compile and retain in accessible form records showing information similar to that previously submitted along with and in support of vouchers, and that in auditing the vouchers the Reconstruction Finance Corporation representatives will be permitted to examine such records but will not be allowed to go beyond them." Approved unanimously. 940 6/18/47 Letter to the Presidents of all the Federal Reserve Banks readas follows: "Reference is made to the Board's letter of May 6, 1947 (5-974), requesting the termination by July 1, 1947, of certain custody accounts for nonmember banks. "This is to advise you that the Board is in agreement with the opinion of the Presidents as expressed at their joint meeting with the Board on June 6 that the Reserve Banks which now have custody accounts should notify the nonmember banks involved that no new custodies will be received after July ly 1947. This will have the effect of terminating all such custodies within a year since none of the securities in question have a maturity of more than one year."
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