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374 Minutes of actions taken by the Board of Governors of the l'ecieral Reserve System on Wednesday, March 17, 1948. rlet in the Board Room at PRESENT: Mr. Mr. Mr. Mr. The Board 3:37 p.m. Szymczak, Chairman pro tem. Draper Evans Clayton Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Thomas, Director of the Division of Research and Statistics Vest, General Counsel Young, Associate Director of the Division of Research and Statistics Wood, Economist, Division of Research and Statistics Chase, Assistant Counsel Reference was made to a draft of letter to Chairman Wolcott Rouse Banking and Currency Committee stating that the Board 4.11 .Learned that hearings had been held by the Banking and Currency eo n ittee on H. R. 5854, a bill which would extend Title VI of the 44tiona1 Housing Act and make certain changes in the provisions of tilat title, and that the Board believed that such legislation would ' -,ounter to anti-inflationary fiscal and credit policies. titart The would also transmit for the information of the Committee a °r the statement with respect to housing finance made by Chairr4e41, 'Iceles before the Joint Committee on the Economic Report on No25, 1947. 375 3/17/48 -2Mr. Carpenter said that at the meeting of the Board on Feb- 1119-17 19, 1948, consideration had been given to sending a copy of C114tirman Eccles' statement on Housing finance to Chairman Gamble r the Joint Committee on Housing, that the Board had authorized tlie sending of such a letter when it appeared that the President 13-U going to submit a special message to Congress recommending hva sing legislation, and that after the President's message on hou . sing was sent to Congress on February 23, 1948, it was decided ot t ° send a letter which would be in opposition to the recom14enclat1ons of the President. There was a discussion of the desirability of placing the top,-4Nus views before the House Banking and Currency Committee dur- it was noted that Chairman Wolcott was also a member of the . uoint Committee on the Economic Report, that as such he had 4-1811e a copy of Chairman Eccles' statement of November 25, 841 ' eald that the only purpose to be served by sending a statement to 1414 . 14 his capacity as Chairman of the Banking ana Currency Com141tte -e would be to place the Board on record at this time as hold11 the same views as those expressed by Chairman Eccles at the 40.11,4 'ngs last November. It was also noted that no formal request 4k1b_ 'en received from the Committee for an expression of the views and that the Board might be given, or could ask for, 376 3/17/48 -3- elaoPPortunity to appear before the Senate Banking and Currency Comlaittee when and if the proposed legislation came before that ComZittee. Following the discussion, it was agreed that no action would be taken to bring the Board's views on housing to the attention of the House Banking and Currency Committee at this time. At this point Messrs. Thomas, Vest, Young, Wood, and Chase with cl-rew and the action stated with respect to each of the matters llel ' einafter set forth was taken by the Board: Minutes of actions taken by the Board of Governors of the Peat!. ' 1"al Reserve System on March 16, 1948, were approved unanimously. Memorandum dated March 16, 1948, from Mr. Leonard, Director or he Division of Examinations, recommending that the resignation Or Charles E. Fischer, an Assistant Federal Reserve Examiner in that -,vision, be accepted to be effective, in accordance with l'equest, at the close of business March 26, 1948, with the Standing that a lump sum payment would be made for annual e remaining to his credit as of that date. Approved unanimously. Letter to Mr. Rounds, First Vice President of the Federal lieSe Bank of New York, reading as follows: "In accordance with your letter of March 11, 1948, the Board approves the payment of salary to Mt. Robert 377 3/17/48 -4- "H. Brome as Assistant Counsel at the rate of $10,700 Per annum from April 30, 1948 to March 31, 1949 inclusive, provided this is the rate formally fixed by the Board of Directors." Approved unanimously. Letter to the board of directors of the "Pamplico Bank and l'1711st Company", Pamplico, South Carolina, stating that, subject to e°4d.itions of membership numbered 1 to Re hr 3 contained in the Board's 4uion H, the Board approves the bank's application for memo in the Federal Reserve System and for the appropriate a14°1111t of stock in the Federal Reserve Bank of Richmond. Approved unfinimously, together with a letter to Mr. Leach, President of the Federal Reserve Bank of Richmond, reading as follows: "The Board of Governors of the Federal Reserve System approves the application of the Pamplico Bank and 11-last Company, Pamplico, South Carolina, for membership 111 the Federal Reserve System,subject to the conditions Prescribed in the enclosed letter which you are requested to forward to the board of directors of the institution. Pwo copies of such letter are also enclosed, one of which is for your files and the other of which you are requested to forward to the Chief Examiner, State Board of Bank Control for the State of South Carolina, for his information. "It is assumed that you will follow the matter of the bank's bringing into conformity with the provisions of law and the Board's regulations its requirements with respect to savings deposit withdrawals. "It is noted from the membership examination that seven directors are now serving this bank, whereas the eXaminer states that the by-laws require from three to five directors. As the South Carolina statutes provide that the number of directors shall be fixed by the bank's 13Y-laws, this matter should be called to the bank's attention for any necessary corrective action." 378 3/17/48 -5Letter to the board of directors of "The Jackson State Bank", 4.ckson, Wyoming, stating that, subject to conditions of membership 1111E1bered 1 to 3 contained in the Board's Regulation H and the follow- special condition, the Board approved the bank's application for ille13113ershiP in the Federal Reserve System and for the appropriate 8.1111.1t of stock in the Federal Reserve Bank of Kansas City: Prior to admission to membership such bank shall charge off or otherwise eliminate estimated losses of $8,388.93 as shown in the report of examination made by the examiners for the Federal Reserve Bank of Kansas City as of January 17, 1948." Approved unanimously, together with a letter to Mr. Leedy, President of the Federal Reserve Bank of Kansas City, reading as follows: "The Board of Governors of the Federal Reserve System approves the application of The Jackson State Bank, Jackson, Wyoming, for membership in the Federal Reserve SYstem, subject to the conditions prescribed in the enclosed letter which you are requested to forward to the 130ard of directors of the institution. Two copies of such letter are also enclosed, one of which is for your riles and the other of which you are requested to forward to the State Examiner for the State of Wyoming, for hls information. "It is noted that the management agreed that deposit balances carried with two nonmember banks would be reduced within the limits imposed by statute if the bank is adItitted to membership. "While substantial improvement in the condition of the aPPlicant bank appears to have been effected since it was examined by the State authorities in October 1947, the credit policies of the management have been under criticism bY the FDIC and the State authorities for some time and the PDIC examiner recommended in June 1947, that it be scheduled fOr examination every 90 days, in rotation with State exsziners. The examination for membership disclosed need for 3'79 3/17/48 -6- correction and improvement with respect to records, systems, controls, credit data and collateral exceptions, all of which were promised together with the maintenance Of a more conservative credit policy. It is assumed that the Reserve Bank will insist upon fulfillment of the promises received and will conduct such periodic investigations or examinations as may be necessary to satisfy itself in that respect." Telegram to Mr. Volberg, Vice President of the Federal ReBee Bank of San Francisco, reading as follows: "Betel March 16. In view your recommendation Board approves temporary establishment and operation of branch at Geneva Avenue and Rio Verde Street, San Mateo County, California by American Trust Company, San Francisco, California, for period March 20 to 27, 1948, inclusive in connection with Junior Livestock Exposition provided counsel for Reserve Bank is satisfied as to the legal aspects involved." Approved unPnimously. Telegram to Mr. Wilbur, Federal Reserve Agent of the FedReserve Bank of San Francisco, authorizing him to issue limitea voting permits, under the provisions of Section 5144 of the Sed Statutes of the United States, to the "Transamerica CorpotEl.t;1(1,ft ) San Francisco, California, entitling such organization to the stock which it owns or controls of the "Bank of Newman", 41,1,21 *111) California, and"The First National Bank of Crows Landing", s Landing, California, and at any time prior to July 1, 1948, to Ilthorize the transfer, by purchase and sale agreement, of the ' (leDoc, 4. and business of the Crows Landing Branch of Bank of NewThe First National Bank of Crows Landing, provided that all 380 3/17/14-8 -7- a"don taken shall be in accordance with a plan satisfactory to the Nleral Reserve Bank of San Francisco. Approved unanimously. Telegram to Mr. Volberg, Vice President of the Federal Reserve Bank of San Francisco, reading as follows: "Reurtel Pacific Gas and Electric unissued rights are defined as unissued securities and are subject to the provisions of Regulation T sections 3(h) and 3(d) (4), but note that the rights as such have no loan value under section 3(c)." Approved unanimously. Memorandum dated March 12, 1948, from Mr. Carpenter stating that replies had been received from the representative members of the ?ed.tch, 41 Open Market Committee in response to the Board's request for ' tel comments and suggestions regarding the policy record of the ?ea. 14.1 Open Market Committee covering the year 1947, and recommend' ' that the revised draft of the open market policy record attached to the memorandum be approved with the understanding that it would 111 IYUblished in the appendix of the annual report of the Board for 1.947. Approved linianimously. 441s°ved: em.
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