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929 A meeting of the Board of Governors of the Federal Reserve Sys— Was held in Washington on Thursday, June 8, 1944, at 10:15 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Mr. Mr. Mr. The Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman action stated with respect to each of the matters hereinafter 4terred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Federal System held on June 7, 1944, were approved unanimously. The minutes of the meeting of the Board of Governors with the ex— eettiv e committee of the Federal Advisory Council held on June 7, 1944, Were a P131%°ved unanimously. Letter to the board of directors of the "Brattleboro Trust Company", r4tleborol Vermont, stating that, subject to conditions of membership 4114be ' l ect 1 to 6 contained in the Board's Regulation H and the following thei 4 81 the th condition, the Board approves the bank's application for membership Pederal Reserve System and for the appropriate amount of stock in 441r61 Reserve Bank of Boston: 11 7 1: 1 ior to admission to membership, such bank, if it has not 1 e ready done so, shall charge off or otherwise eliminate stimEtcd losses of $3,797.53, as shown in the report of :Ielliiination of such bank as of April 22, 1944, made by an xammer for the Federal Reserve Bank of Boston." et also containEd the following special comments: 930 6/w44 , "It is understood that under the laws of the State of vselm.xlrit Your bank is authorized to deposit trust funds in the „allIngs department of your bank as a form of investment. . wever, the effect of condition of membership numbered 4 is o.Proht such investments unless they are expressly re : . lred by the instrument creating the trust or are specifiallY authorized by court order. of It is also understood that under the laws of the State Vent your bank is not authorized to pledge securities with the trust department to secure trust funds temporarily clePosit in the commercial or savings department. Therefnc3 prre? the effect of condition of membership numbered 6 is to itcthlbit your bank from depositing uninvested trust funds in 4 _8 commercial or savings department, or otherwise using them conduct of its business, unless and until your bank is by State law to secure the funds so deposited by the 2e Pledge of securities with its trust department in the same 1".a_HIer and to the same extent as is required of national banks ' 'ceralsing fiduciary powers." r r Approved unanimously, together with a letter to Mr. Flanders, President of the Federal Reserve Bank of Boston, reading as follows: apo "The Board of Governors of the Federal Reserve System Bra q°ves .4_ the application of the 'Brattleboro Trust Company', syst:leboro, Vermont, for membership in the Federal Reserve iet4 -111, subject to the conditions prescribed in the enclosed kr:" which you are requested to forward to the Board of eas ctors of the institution. Two copies of such letter are of °of ,nclosed, one of which is for your files and the other Bezik, .1ch 11 You are requested to forward to the Comaissioner of tiorCne & insurance for the State of Vermont, for his informa- lief "Itthas been noted that your examiner expressed the be- the service of Harry E. Clark as vice president and Itic"'"°1 'of the bank and as a director of Vermont Securities, b ' t and the service of J. Harold Muzzy as director of the ritieancl vice president and a director of the Vermont SecWoilict8',Inc•, after the admission of the bank to membership, 48„,_ vJ-olate section 32 of the Banking Act of 1933. It is &a ed that, unless you have already done so, you will satbet„Yourself with respect to whether these services would 44;°hibited and will follow the matter of obtaining any the sarY corrections. Please advise the Board concerning action taken. 931 6/8/44 is assumed also that you will follow the matter ot ui the bank's bringing into conformity with the provisions t; la-w and the Board's regulations the savings account men-oned on Page 2 of the report of examination for membership _rd the matter of the bank's appointment of a trust committee otherwise providing for the collective judgment of its : . 112ectors in the acceptance, analysis, and review of fidu' ldry accounts." Letter to Mr. J. M. Johnson, Director of the Office of Defense SP°Itation, reading as follows: ."The Board of Governors is glad to continue its cooprea,,tlon with the Office of Defense Transportation in the '41ction of unnecessary travel. troi cordingly, the Board has set up a procedure for con/Jaen:L*1,1111g attendance at and participation in conventions by 84e —ers of the Board or its staff in conformity with the of „ gestion contained and the policy outlined in your letter •14a3r 20. cittri . iiI°11r letter will be brought to the attention of all the71°1.18 of the Board and I am sure that you can count on geatir c ontinued cooperation also along the other lines suged in Your letter." Approved unanimously, together with the following memorandum to the heads of all divisions and offices of the Board: bire "Attached is a copy of a letter dated May 20, from the the et°1" of the Office of Defense Transportation, requesting e°°Peration of the Board in the campaign to reduce travel, levei travel wr Peaks, and discourage conventions. ()peril,. Lie Board has assured the Director of its continued coA n in the reduction of unnecessary travel. The Chair14.4 oc,,1° hea4-,:eting Chairman will continue to pass upon requests of is call'''. divisions for authorization to travel, and the Board ley ta -Ling upon the heads of divisions to conform to the pol18 ,,:,.ei : t forth in the attached letter, both in planning their °1‘71t ' and in authorizing travel of members of their re-. -Ye divisions." -443randum dated June 1 1944, from Mr. Parry, Director of the tIV 1410h ,of s t.1,41t ecurity Loans, recommending, in view of the fact that more qirle h d h 6 -een required so far this year than was anticipated, that 932 6/8/44 —4— tile 1944 budget allocation for traveling expenses for that Division be Increased from 6750 to $1.,0°°. Approved unanimously. Thereupon the meeting adjourned.
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