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903 Minutes of actions taken by the Board of Governors of the klera.1 Reserve System on Tuesday, June 8, 1948. the The Board met in B°a-rd Room at 10:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. McCabe, Chairman Eccles Szymczak Draper Clayton Mt. Mr. Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Riefler, Assistant to the Chairman Vest, General Counsel Chairman McCabe stated that he had been reviewing the record Of 14j iduals who might be considered by the Board for appointment Eta ei 4ss C director and designation as Chairman and Federal Reserve Age4t at the Federal Reserve Bank of Philadelphia, that the man u Ingersoll) who would be his first choice was not available, tIlktt ter considering all available persons he had concluded that " 111111AM J. Meinel, President and General Manager of the Heintz ilteturing Company, Philadelphia, and presently Class B direcor r the 1 Philadelphia Bank, would be the most suitable person th e aPPointment, and that, if it was agreeable to the Board, 1011 cl like to talk informally with Mr. Meinel to ascertain : Is he would accept appointment. There was a discussion of Mt. Meinel's qualifications and the qUestion whether he would adequately represent the public (ttW' 6/8148 -2- i"erest point of view if he were appointed a Class C director. 11111-1113 the discussion reference was made to two memoranda from kr. '.per, dated June 4 and 7, 1948, regarding Mr. Meinel's (14111if ications and his possible appointment. Chairman McCabe 418° read a letter from Mr. Williams, President of the Federal lieBe rve Bank of Philadelphia, dated June 4, 1948, which indicated 444(1 some of the directors of the Bank would welcome Mr. Meinel's 4Th, -vointment as Chairman. In response to a question from Mr. Eccles, Chairman McCabe that he did not believe Mr. Whittier, Deputy Chairman of t4p, Illiladelphia Bank, would feel that he had been overlooked if kr .MA4 el was appointed, that, in fact, Mr. Whittier had sug- eSteci Mr• Meinel's name for the appointment, and that he (Chair1444 keaebe) had the impression that, in view of his age and his rtireiterrt from most business activities, Mr. Whittier would pre- the selection of someone other than himself as Chairman and 111 1i (411d continue as Deputy Chairman to devote a great deal of a4d energy to his service as a director of the Bank. /During the discussion Mt. Nelson entered the meeting. 1,11c1i4 The names of several other individuals were discussed, inWilliam L. Batt, President, SKF Industries, Inc., Mr. ' 411 k. x"olsom, Executive Vice President, Radio Corporation of c-i 6/8/48 -3- Ateric_ u and Mr. James McGowan, Jr., President and Director, Camp- 151 Soul) Company, but no conclusions were reached as to an ap13c)tiltee. Mt. Eccles suggested that the matter be placed on the 4ellta for consideration at a meeting of the Board on June 1948, 25, when all members of the Board might be present or could h e 411 oPportunity to express their views prior to the meeting. Illthis connection he suggested that the Secretary's Office inr°'11the members of the Board who were not present at this meet14€ that the matter was to be considered on June 25 and that he each member of the Board with copies of Mr. Draper's keltor..._ da.of June 4 and "June 4, 1948, 7, 1948, of Mr. Alfred H. Williams' let- and with a copy of an address on "The Full /1N)04si bility of Management" given by Mt. Meinel before the Prttlikiija Institute on May 19, 1948. Upon motion by Mr. Eccles, it was agreed unanimously that the question of appointment of a Class C director and designation of a Chairman and Federal Reserve Agent at the Philadelphia Bank Should be placed on the agenda for consideration at the meeting of the Board on June 25, 1948, and that the members of the Board who were not at the meetthis morning would be informed that the matter was to be considered at that meeting and would be furnished with copies Of the material suggested by Mr. Eccles. 6/8I 8 Mr. Szymczak stated that he was leaving on vacation and if he were not at the meeting on June 25, 1948, he would like to be recorded as favoring the appointment of Mr. Meinel. Mr. Szymczak referred to the discussion of the Board at the zleeting on May 14 concerning the use of the private dining atd suggested that the Board adopt a policy of reserving 11°C4118 t4Brown dining room for the use of Board members and official Ilests from the Federal Reserve Banks. His reason for suggest- is th arrangement was to make the Brown room available for _ '46a luncheon discussions of matters which could not be tEtite4 u if there were guests from outside the Federal Reserve Re stated that if this arrangement was made he would 11E4Erseable to any arrangement the other members of the Board /4'c'rk out for use of the Blue dining room. 14r. Eccles stated that both Messrs. Evans and Vardaman hEki %ury, th4t-- a special interest in this question and he suggested 'It be taken up at a meeting when they could be present. the t Dttti3 0 Chairman McCabe suggested that, since the operation of (38.118 building was one of the subjects assigned to Mt. r°1. Primary consideration, he submit a recommendation 0118ideration at the meeting on June 25, 1948, on the use v8/48 _5_ t:/tthe private dining rooms. This suggestion was approved unanimously. Question was raised by Mr. Szymczak as to the procedure hat should be followed to inform all members of contemplated seri, of members of the Board. Mr. Clayton suggested that the Secretary's Office be rerillested 44:1 to check with each Board member's office on the tenth ' 16Y fifth of each month to ascertain whether he would be Itheiltduring the succeeding half of the calendar month, and that the esults of the check be furnished promptly to each Board mem- There was also a brief discussion of the desirability of iling a quorum in Washington at all times, during which Mr. 8 oUtlined the practice followed by the Board in the past quorum of the Board was not present. Chairman McCabe suggested that it would be helpful if Etc.,44, .."„u and other absences of Board members were scheduled in aY as to make it possible, in the event it seemed desire t() ,440_ so to have a quorum in Washington in a matter of a (41rs at any time. Mr. Carpenter stated that at the meeting on June 1 it Illacler Stood that the question of the responsibility of the 6/8/1 / 48 -6for maintaining a quorum in Washington would be discussed at "leeting when all members of the Board were present. It was the %rise of the members present that there would be no objection QIIthe Part of absent members to the adoption of Mr. Clayton's 1311R0, ' e8tion as set forth above. Thereupon, upon motion by Mr. Clayton, it was agreed unanimously that on the tenth and twenty-fifth of each month each member of the Board, in response to a request from the Secretary's Office, would advise that Office of contemplated absences of the Board member for a day or more during the next succeeding half calendar month, and that as soon as the Secretary's Office had obtained the Information covering Board members' absences during that period, it would send a memorandum containing the information to the office Of each member of the Board, the Assistant and Adviser to the Board, the Assistant to the Chairman, and the heads of the divisions of the Board's staff. In taking this action it was understood (1) that if, before the succeeding semi-monthly report, any change was made by a member of the Board in his contemplated absences, he would send a memorandum of the change to the Secretary's Office, which would promptly advise the other members of the Board, and (2) that if there were any objection on the part of the absent members of the Board to the procedure as approved at this meeting, the matter would be considered at a subsequent meeting of the Board. Chairman McCabe stated that about two months ago he was :Ilegt a+ -- luncheon with the fiscal and financial writers of 6/8/48 -7144silington, at which time he stated that at some future time he /101.11,1 ' 4 like to have them for luncheon at the Board's offices. He 4L4/ that he and Mr. Thurston had discussed the matter and felt 411°111d be desirable from the standpoint of public relations to 14it e the group, which would include around 20 persons, to a 1114c4 e°11 after which talks would be made by members of the staff ' er to those recently given when officers of State bankers 4880ca 1-43-tions visited the Board's offices. He added that if the --011 were extended and if the experience gained seemed to 1/41, 41Q-t it/ it might be desirable to repeat the invitation from ttle to time Upon motion by Mr. Draper and by unanimous vote, Chairman McCabe was authorized to arrsnge for a luncheon as outlined, with the understanding that the cost of such luncheon for the invited guests would be Paid by the Board and charged to the appropriate budget item of the Division of Administrative Services. In taking this action it was understood that, on the basis of the experience gained at this luncheon, Chairman McCabe would make a recommendation to the Board as to whether further luncheons of this kind should be arranged from time to time. Carpenter then read a letter to Chairman McCabe from CiElt or Y1 ri uhairman of the Federal Reserve Bank of Atlanta, under &Ile 7, 1948, which was received during the meeting. The ().-1;. %A "-ego 6/8/48 -8letter referred to the Board's action of May 25 in approving the salerles of all officers of the Atlanta Bank as fixed by the board o lirectors of that Bank with the exception of the salary fixed 11:"he Atlanta board for Mr. Clark, First Vice President, and stateA u that the action of the Atlanta board in fixing Mr. Clark's Balar waS taken after an informal clearance of the proposal with the B °ard and that he and Mr. McLarin, President of the Bank, were 1)11tt0 the embarrassment of going back to the board of directors tOr 4Proval of the salary approved by the Board of Governors. kr,17 eelY's letter also said that he would like to talk with Chairtieja 'eCabe the first time they were together about the Board's at' e or the attitude of some members of the Board, toward Mr. Clark, sllIce it had been a source of considerable discussion in 1°14 of the Atlanta Bank board and of embarrassment to Mr. 111 atid himself and that if anything could be done about the 111reas e Proposed for Mr. Clark it would be appreciated. Chairman McCabe stated that he felt that if there had seaea,e44. indication from the Board's Personnel Committee that the 1111 °1 'Mr. Clark would be approved, there was a commitment 11sh°1ild be carried out, and that the action taken by the : '' Lrcl at the meeting on May 25 should be changed accordingly. 141% Nelson stated that at a meeting on April 28, 1.948 6/8/48 -9- tile p el'sonnel Committee (which then consisted of Messrs. Evans and ' 4)11) gave informal consideration to official salaries of the Atiatt a ' Bank, that among the proposals was a suggested increase of $2/000 for Mr. Clark, that the Personnel Committee requested him , -elson) to telephone Mr. McLarin who had submitted the salary tiloe ions to Mr. Nelson for informal consideration and say to 11114 th -at the Board's Personnel Committee did not feel it could r-tleild an increase of $2,000 for Mr. Clark, but that it would 4 1 , 0 ' 1. 138-red to recommend that the Board approve an increase of ti)Oon sj* Mr. Nelson also said that through oversight this matter 'Jaz °t cleared with the full Board in accordance with the estEtbli 11 procedure which provided that salary proposals of the ‘Te Banks would be presented for informal consideration by tIleto ard prior to formal action by the directors of the Reserve The other members of the Board who were present indicated thilt Ifhile they had some reservations concerning the management °rthe Atlanta Bank along the lines expressed at the meeting on kv 2_ Na,' D theY felt the matter of the proposed increase in Mr. salarY involved a possible commitment on the part of thell°411d, and that under all circumstances it would be prefert° el:Trove the increase of $1,000 in Mr. Clark's salary, 91 6/8A8 -10- Ilith the understanding that Chairman McCabe would discuss with e-Y the broad question of top management at the Atlanta It was agreed unanimously that the Secretary should advise Messrs. Evans and Vardaman of the discussion at this meeting and of the views of the members present at the meeting and, if Messrs. Evans and Vardaman approved, that Mr. Neely should be advised that the Board approved a salary at the rate of $17,000 per annum for Mr. Clark, effective June 1, 1948, but that the matter of management of the Atlanta Bank was one which Chairman McCabe should discuss with Mt. Neely at their mutual convenience. Iii connection with the discussion of Mr. Neely's letter, eeles stated that during the session of the Chairmen's Cone held on May 30 at White Sulphur Springs he received a note *. Vardaman which had been initialed by Messrs. Szymczak, r-)1•8410 vans, and Clayton suggesting that inasmuch as Chairman Plece..b e Ifts unable to be at White Sulphur Springs he (Mr. Eccles) the s take occasion to discuss with Mr. Neely the problem of ‘th( i)erlica' management of the Atlanta Bank, and with Mr. Parten blem of the auditor of the Dallas Bank, along the lines : tita betiale ssed at the meeting on May 25. /14(I Mr. Eccles stated that partly the matter did not seem to him to be of urgent importance 1-1-tlY because Messrs. Neely and Parten left the Chairmen's 6/8/48 C°11f -11- ence early on the morning of May 31 he did not discuss the 1114ttel's with either of them. Mr. Clayton stated that Mr. Thurston had received a call *0111 Mr• Wilcox, Editor of Washington Banktrends, asking about a teetiAg held with Secretary of the Treasury Snyder concerning bank holai OMpany legislation at which a representative of the Board VE14 Present. Mr. Clayton said he understood that the meeting was OX June 2, l the day following that on which he and Mr. Townsend 41.4 ered a letter to Comptroller of the Currency Delano concerning the lEtYton Act proceeding against Transamerica Corporation, and" 'cIllested that the Board be advised of the details of the keeti 14.1". Nelson withdrew from the meeting at this time and Mr. ‘its, /1.c1 entered. Chairman McCabe stated that while he was ill he received ktele Phone call from Mt. Cameron Thomson, President of Northwest 411e0 tt qoration, inviting him to attend a meeting at the Treasury katle„ '46 "gilt kr e done to bring about the adoption by the Congress of bank lig ecImPany legislation, and that at the insistent request of -on that kr ' on Wednesday, June 2, for the purpose of reviewing what he have a representative present he had asked -kler to attend the meeting as an observer on his (Chairman kQr, 'Ette, s) behalf. 4g. He then asked Mr. Riefler to report upon the 6/8/ -12While Mr. Riefler was getting his notes of the meeting, Mr. "'oil stated that while he was at White Sulphur Springs at the kstri --ct of Columbia Bankers Convention, Comptroller of the CurliericY Delano advised that Secretary Snyder and he had agreed that, lrj Irt_ w of the pending proceeding against Transamerica, he would tiot ''rEllat any applications filed by banks in the Transamerica 'Or permission to convert subsidiary banks into branches. Following a discussion of efforts that had been made to ac _ tion on the pending holding company bill, Mr. Riefler stated th4t at Chairman McCabe's request he attended a meeting held in tje ' eshington offices of the American Bankers Association at 10: (1° 4.111. on June 2, 1948, at which there were present Secretary Of the Treasury Snyder, Comptroller of the Currency Delano, Mr. 111104180... President of Northwest Bancorporation, Mr. Fogarty, a 41Yer With Northwest Bancorporation, Mr. Stonier, Executive 1.11114RA --r of the American Bankers Association, and himself. thell He 1.41cle a statement substantially as follows as to what ocecl at the meeting: *. Cameron Thomson,who is Chairman of the Holdng Company Legislation - Y Committee on Holding am C°111Dan respec0 had arranged for this meeting, said that, with te, t to political aspects, the holding companies 4.1a-c'it they would survive better if they helped to write ir ,Pass constructive holding company legislation than IheY limited their role to opposition. He said they 91 6/8/48 -13- Secured fair agreement among themselves and had established working relations with the independent bankers groups under which both groups were working in unison but either was free to go its own way after notice and consultation if their views diverged. Mr. Giannini, who had great influence in Congress, was not a member of the groups but was in consultation with them and had agreed to throw hIS support behind the legislation they were trying to secure. Mr. Thomson felt that Mr. Giannini would keep his l'Iord and said his group would like to help pass a "good" holding company bill this session. brr, ,1". Thomson also said that the present bill was so -au-LY drawn at some places that it stepped on lots of oes inadvertently. The strategy of the opposition was .2ot 1 to appear vigorously against the bill in the Senate out to hit it in the House. He felt there was now no chaace of legislation this session, unless Congress should return this summer. He also said there were l'Ilmors that the Board of Governors was contemplating .j 111 tion under the Clayton Act against Transamerica, and w'at Giannini had a persecution complex with regard to , 4shington and would probably resent such action to the oilat where no legislation might be passed. The present tl, i11, Mr. Thomson said, concentrated too much power in j e Board of Governors and did not allow sufficient voice tifther to the other Federal supervisory agencies or to bee State supervisory agencies. Consequently, both might r counted on to oppose it or to fail to give the bill ?al support. Mr. Thomson wanted a bill that all could .gree on and put through Congress. As to the substantive aspects of the bill,Mr. Thomson saiA several amendments offered by the groups had been oreed on by the Board and all concerned while others had vit Yet been agreed on although Mr. Eccles had indicated Thth respect to some that the language might be changed. tv concern of the holding company group was strong on ti: lnain points: (1) definition of policy and objecti ves (2) restrictions on acquisitions. Other objec44118 of the holding company group were (1) they did st , want to see holding companies restricted to any one : ti r "e or Federal Reserve District (2) they were disvtibed that the bill is drafted along lines of the itijitY Holding Company Act rather than banking legislOn (they disliked the feature of investor protection t j ) 6/8/48 and favored protection of the depositor as motivation for the legislation) (3) they disliked the drafting of the Provision against interbank borrowing. In this connection 14r. Thomson raised a question as to whether the holding Of interbank deposits would constitute interbank borrowWith respect to the primary objectives of the bill, 4r. Thomson said the holding company group did not like road discretionary powers to be given to the Board and Lhat that was what disturbed Giannini most. He also said they did not like the phrasing "minimize competiti°n", "restraint of trade", and "undue concentration economic power" as used in the bill. Mr. Stonier said the American Bankers Association had taken no position on the bill but might have to get Program together. He thought the present bill was 'lead largely because it gave too much power to the Reserve Board and he felt an acceptable bill that could °ss (1) would have to create a new Holding Company ,ard with representation of all Federal banking supervisory agencies and also with representation of State Zgencies (2) should prohibit holding company acquisi! s .°ns in States that prohibited branch banking (3) til °111d not make the mistake of dragging in companies t at do not operate as holding companies or think of rue mselves as holding companies simply because they : Ill within a certain definition. Mr. Stonier also d the fundamental problem was whether holding com11: , 41Ilies shall be limited to one State. While the new Should pass on what acquisitions could be made, ore legislation should definitely require the divorce non-banking affiliates of bank holding companies. Mr. Thomson said his group could not necessarily J-Lee with all of this but they did agree that holding b°131Danies should not be allowed to own or operate nonihatliking affiliates. He stated that Mr. Giannini was spared to accept this also. 110,, Mr. Snyder said he understood the present bill 4 not pass this session, that he personally was tjavor of sound holding company legislation, and r;r4t there would be time before Congress reconvened 1* the supervisory agencies to work on a bill. 1 r 6/8/48 -15There followed a discussion of what Mr. Thomson may have ih mind. in asking for the meeting and the part he had played 114connection with the pending bill. Chairman McCabe raised the testion of what action the Board should take at this point, and 8tateA that he wanted his position to be made entirely clear, that stated before the Senate Banking and Currency Committee that ther e 'Was no question in his mind concerning the desirability of the broad aa purposes of regulating and controlling bank holding com- DEttie 8) especially those whose expansion programs are inconsistent DI.inciples of adequate and sound banking. He added that his 1.°81.tin -11 was stronger now than when he appeared before the Committee Said he had gone on the assumption that Mr. Thomson favored te b 1 and was trying to get all elements to agree on a bill that get Congressional approval, and that he (Chairman McCabe) was 4g if there would not be some benefit in his sitting down (4s member of the Board who was unfamiliar with the background th e 4tto resent bill) with Messrs. Thomson, Stonier, two or three suPPorters of the bill, including someone like Mr. Reno Odlin, tletit, Puget Sound. National Bank of Tacoma, and one or two others, 4,1 or Perhaps Mr. Harold AMberg, Vice President and General Counthe First National Bank of Chicago, and going over the whole ern 'With them. Chairman McCabe's suggestion was discussed and it was lisellsus that there was no likelihood of a bill being 6/8/48 -16- elaaeted at this session of Congress and that there would be ample tille to determine the steps that might best be taken to obtain the 14°Ition. of legislation at the next session of the Congress. At the conclusion of the discussion it was agreed unanimously that, after further consideration of the matter with Mr. Townsend, Chairman McCabe would submit to the Board a recommended procedure to be followed with a view to bring about legislative action on bank holding company legislation at the next Congress. At this point Messrs. Riefler, Vest, and Townsend withdrew he action stated with respect to each of the matters hereinSet forth was taken by the Board: Minutes of actions taken by the Board of Governors of 'Pei; ,Leral Reserve System on June 7, 1948, were approved unanimously. Memorandum dated June the 4, 1948, from Mr. Bethea, Director Division of Administrative Services, recommending the ap- 13°1171tIellt of William F. Becker as a guard in that Division, on a tN)orary indefinite basis, with basic salary at the rate of $2,020 el11411al, effective as of the date upon which he enters upon the 411'.°1111411ce of his duties after having passed the usual Physical t44 it The memorandum also stated that it was contemplated 8ecker would become a member of the Federal Reserve ret sYstem. Approved unanimously. 6/8/ -17Memorandum dated June 8, 1948, from Mr. Smead, Director of the tivis1- on of Bank Operations, recommending that an advance of 1'111248 in the amount of $100 be paid to Mt. Connell, a technical 4ss1stant in that Division, to cover travel expenses in connect10 11 'with a Functional Expense Survey to be made at the Federal 4eerve Bank of New York. Approved unanimously. Letter to Mt. Latham, Vice President of the Federal Reserve Bank of Boston, reading as follows: "In accordance with the recommendation contained 14, . Jour letter of June 3, 1948, the Board of Governors .tends to November 28, 1948, the time within which the ii ringfield Safe Deposit and Trust Company, Springfield, rallssachusetts, may establish the branch at East Long,!adow, Massachusetts, which was approved by the Board -"December 11, 1947." Approved unanimously. Letter to Mr. Diercks, Vice President of the Federal Retillk of Chicago, reading as follows: 'Reference is made to your letter of June 4, 1948, _ ihthit Mting a certified copy of a resolution adopted by me Board of Directors of the Commercial State Bank of 111.°7111, Melvin, Illinois, signifying its intention to alihdraw from membership in the Federal Reserve System r " requesting waiver of the six months' notice usually eqUired. tioa "In view of the Reserve Bank's favorable recommendaor the Board of Governors waives the usual requirement sh_siz months' notice, as requested. Accordingly, upon 'render of the Federal Reserve Bank stock issued to Z ,4•0 . 4S. : ( 6/8/48 -18- "the Commercial State Bank of Melvin, Melvin, Illinois, the Federal Reserve Bank is authorized to cancel such stock and make appropriate refund thereon. "It is noted the bank wishes the termination of its membership to coincide with its acceptance for insurance by the FDIC. In the circumstances, the be-nk will have four months from the date of this letter to accomplish termination of its membership. (F.R. L.s. #3548). "Please advise the Board of Governors when cancellation is effected and refund is made. The Certificate Membership issued to the bank should also be obtained, Possible, and forwarded to the Board. The State bank' authorities should be advised of the bank's proposed /4ithdrawal from membership and when it has been effected." Approved unanimously. Letter to the Presidents of all Federal Reserve Banks readfollows: "There have been forwarded to you today under sep°ate cover the indicated number of copies of the fol11 Iiing forms, a copy of each of which is attached, for i of State member banks and their affiliates in sub! 1118 6ting reports as of the aext call date: 'Umber of --2°12L221_ Form F. R. 105 (Call No. 109), Report of Condition of State member banks. Revised instructions pertaining to the reporting of valuation allowances. Form F. R. 105b (Revised August 1939), Loans and advances to affiliates and investments in and loans secured by obligations of affiliates. Form F. R. 105e (Revised May 1948), Publisher's copy of report of condition of State member bank. Form F. R. 105e-1 (Revised May 1948), Publisher's copy of report of condition of State member bank. Form F. R. 220 (Revised August 1946), Report of affiliate or holding company affiliate. 7 6/8/48 -19- "Number of copies Form F. R. 220a (Revised August 1946), Publisher's copy of report of affiliate or holding company affiliate. Form F. R. 220b (Revised August 1946), Instructions for the preparation of reports of affiliates and holding company affiliates. "The proposed forms are the same as those used on 4Pril 12, 1948 with the following exceptions: (1) A new memoranda item, number 33, has been added to forms F. R. 105, 105e, and 105e-1 to provide for the optional reporting and publication of the amount of reserves deducted from loans and securities. The instructions at the top of form F. R. 105 have been revised to provide for the optional reporting of the new item 33 by permitting an exception to the instructions that every blank space must be filled. (2) Two new items have been added to Schedule A on form F. R. 105 and the method of reporting valuation allowances on loans has been changed. The loan items are to be reported gross (before the deduction of valuation allowances); valuation allowances are to be reported in the new item 11 and deducted from total loans giving a net total, item 12, that must agree with item 6 on the face of the report. (3) Schedules A and B have been added to form F. R. 105 in accordance with the established policy of collecting this information on the June and December calls. , "The revised instructions regarding the reporting of .48-ti0n allowances provide for the changes in the method reporting valuation allowances in Schedule A on form p 105, 105e, and 105e-1, and for the reporting of the ilacerves for bad debts on loans recently authorized for Ilue°me tax purposes in the Commissioner of Internal ReveMimeograph Coll. No. 6209 issued December 8, 1947." Approved unanimously, with the understanding that the letter would be sent when the forms referred to therein are printed and ready for distribution. 618/48 -20Letter to the Presidents of all Federal Reserve Banks read- as follows: "There have been forwarded to you today under separate cover copies of form F. R. 107b (including a new Section D which is printed on a separate sheet) to be used by State member banks in submitting their reports of earnings and dividends for the six months ending June 30, 1948. "There have been a number of changes made in the rorm, as described in the Board's letter of May 13, 1948; these include: 1. Clarifying changes in the wording of items 4 and 5. 2. A note added on the face of the report form, explaining the type of reserves to be reported in items 4 and 5, and in Section D. 3. Section D added, providing for reconcilements of reserves for bad debts and other valuation reserves deducted from loans and securities. copies of "There have also been forwarded 'Revised instructions for the reporting of valuation ! llowances, unallocated charge-offs, and similar valua1-0n reserves' in reports of earnings and dividends. 4:11ese revised instructions describe the method of re1) i°rting the new Section D and the transactions involv.4 reserves for bad debts on loans recently authorized or income tax purposes in the Commissioner of Internal 41 venue's mimeograph Coll. No. 6209 issued December 8, 194.7 , • Section D has been Printed on a separate sheet !t, this time but it is planned to insert it on the back Of the form at the end of the year. There will probably 57 numerous inquiries from State member banks, and pos13T inaccurate reporting, involving this new Section -got the revised items 4 and 5 of Section A. It is sugsted that these portions of the reports be reviewed Ital. sefully. The Board's Division of Bank Operations c111 appreciate suggestions from your Bank regarding t 8-rification and technical improvements before the °rIls and instructions are printed for year-end use." r 6/8/48 -21Approved unanimously, with the understanding that the letter would be sent when the forms referred to therein are printed and ready for distribution. Telegram to Mr. Knoke, Vice President of the Federal Re- 81/1 Bank of New York, reading as follows: "Your wire June 3. Board approves three-month renewal by your Bank of the $20,000,000 of gold loans to Bank Polski due June 9, the $3,000,000 loan due kne 23, and the $3,500,000 loan due July 1, on the same terms and conditions as now apply, which were set forth in your letter to the Board of December 12) 1947. Board notes in this connection that your Belak plans to advise Bank Polski that the granting Of any further renewals would be contingent upon rePaYment by Bank Polski at the time of each renewal c't at least 25 per cent of the loans now outstanding. "It is understood that the usual participation be offered to the other Federal Reserve Banks." Approved unanimously. 44'cived: Chairman.
@FedFRASER