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358 A meeting of the Board of Governors of the Federal Reserve Syste"ras held in Washington on Tuesday, March 2, 1937, at 11:30 a. m. PRESENT: Mr. Eccles, Chairman Mr. Szymczak Mr. Davis Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman Consideration was given to each of the matters hereinafter reto and the action stated with respect thereto was taken by the Telegram to Mr. Sargent, Secretary of the Federal Reserve Bank or Slin Francisco, stating that the Board approves the establishment Witli°ut change by the bank today of the rates of discount and purchase III its existing schedule. Approved unanimously. Letter to Mr. Rounds, Vice President of the Federal Reserve Bank ot New 'Thrk, reading as follows: 'Reference is made to your letter of February 24 advising that t at on April 30, 1936 Mr. Charles A. Papenfuss was promoted _r°1m Assistant Chief Engineer to Chief Fbgineer, an appraised ),(418 1 1-tion, and that his salary was increased from 0,900 to Per annum without obtaining the Board's prior approval. i.„' 20 1:;tis noted that Mr. Papenfuss succeeded Mr. Vincent upon the wElst;;:goztirement and that Mr. Vincent's terminal salary Bo "In view of the circumstances stated in your letter, the d approves the payment of salary at the rate of #4,420 "r annum to Mr. Papenfuss." Approved unanimously. Memorandum dated February 27, 1937, from. Mr. Smead, Chief of the 359 :V2/37 -2- kvision of Bank Operations, submitting a letter dated February 20 from 8nYdar, Vice President of the Federal Reserve Bank of Chicago, which requested approval by the Board of changes in the personnel classificati "Plan of the Detroit Branch of the bank to provide for the creation of the new Position of "Officer's Secretary" in the Stenographic Departwitv, u a maxitum salary of.):2,160 per annum, and for a change in title of the position of "Purchasing and Stock Room Clerk", Purchasing 41(1 Stock Department, to "Supervisor", Service Department, and an in- et'"ae in the maximum salary for that position from $1,800 to *2,520 per 4141111t1* t11(1 The memorandum stated that the changes appeared to be logical recommended that they be approved. Approved unanimously. LetterBank to Mr. Stewart, Secretary of the Federal Reserve of St 41118, reading as follows: "Referring to your letter of February 19, the Board ap"as the reappointment of 'Messrs. Win. K. Norris, acob 1,1111DYke, Maurice Well, Henry S. Gray and M. E. Finch as mem, sers of the Industrial Advisory Committee for the Eighth I Reserve District to serve for terms of one year each edere inning on March 1, 1937." b Approved unanimously. Letter to Mr. T. F. T. O'Connor, Comptroller of the Currency, ug as follows: -"121 you know, The Chase Bank, New York, N. Y., a wholly tre,.',, 4 subsidiary of The Chase National Bank of the City of of-_lork, was organized and is operating under the provisions .ction 25(a) of the Federal Reserve Act and is subject 360 3/2/37 "to examination by the Board of Governors. The matter of haviLg national bank examiners on foreign duty examine the Paris branch of The Chase Bank for the Board of Governors has heretofore been informally discussed by members of the Eoard's staff with Mr. Folger, who has stated that in all Probability your examiners will be in Europe this swnmer engaged in the examination of European branches of national banks and has indicated that it might be possible to arrange for such an examination. "The Board would like, if possible, to have your examiers, upon the occasion of their next trip to Europe, examine /he Paris branch of The Chase Bank under an arrangement similar to that whereby the branch was previously examined by your exon foreign duty acting under commissions issued by the mard designating them as its examiners for the purpose of making such examination. As in the previous instance, your °frice would be reimbursed for the expense of the examination, which would be assessed against the bank. "The Chase Bank also has branches in Shanghai, Hongkong, end Tientsin, China, and the Board would be pleased to have Ijur examiners, when in those cities engaged in the examinelcIn of foreign branches of national banks, make examinations Under the procedure outlined above of the Chinese branches of The Chase Bank. will be appreciated if you will advise the Board whethtletthe proposed arrangement meets with your approval, ItInd, if so, the Board will arrange to issue its commissions the examiners who will be assigned to the examinations." Approved unanimously. Letter to Mr. Fletcher, Vice President of the Federal Reserve 41tik Cleveland, reading as follows: "The Board of Governors of the Federal Reserve System approves the application of 'The Norwood-Hyde Park Bank & ll'Ust Company', Norwood, Ohio, for permission, under the Pr e ovisions of its condition of membership numbered one, to _ )cereise the fiduciary powers authorized under its charter ' 4/1(1 the laws of the State of Ohio. The Board's approval is subject to acceptance by the bank of the following standard conditions prescribed in connection with the adto membership of banks having trust powers: 1. Such bank shall not invest funds held by it as fiduciary in obligations of or property acquired 361 3/2/37 -4_ "from the bank or its directors, officers, employees, members of their families, or their interests, or in obligations of or property acquired from affiliates of the bark. 2. Such banR shall not invest funds held by the bank as fiduciary in participations in pools of mortgage bonds or other securities, and the securities and investments of each trust shall be kept separate from those of all other trusts and separate also from the properties of the bank itself; provided, however, that the Board of Governors of the Federal Reserve System will not object to the collective investment of trust funds where the cash balances to the credit of certain trust estates are too mall to be invested separately to advantage, if the bank owns no participation in the securities in which such collective investments are made and has no interest In them except as trustee or other fiduciary, and if such collective investment is not prohibited by State law or the instrument creating the trust. 3. If funds held by such bank as fiduciary are deposited in its commercial or savings department or Otherwise used in the conduct of its business, it shall deposit with its trust department security in the same manner and to the same extent as is required of national banks exercising fiduciary powers. m_ "You are reauested to advise The Norwood-Hyde Park Bank & L : I. 11st Company of the Board's action, and to obtain an approTgbte resolution of the board of directors of the bank act ting these conditions and forward a certified copy thereof 0 the Board. "Condition numbered 3 above has been prescribed in ace°1 ' clance with the Board's usual practice in cases of this kind 13_ • However, since it is not understood that there has a'all any change in the laws of the State of Ohio under which tiPreference is given to trust funds in the event of liquidsOf institutions exercising trust powers, you are requested 4 _ advise The Norwood-Hyde Park Bank & Trust Company, pursuant ;u 0 the general instructions contained in the Board's letter to titl of March 8, 1935, that, while compliance with Each condibec)r 'may be recuired by the Board at any time, compliance will waived until further notice." Approved unanimously. Letter to the "West Palm Beach Atlantic National Bank", West Palm 362 3/2/37 ach, -5Florida, reading as follows: "The Board of Governors of the Federal Reserve System hes given consideration to your application for permission to exercise fiduciary powers, and grants you authority to act, when not in contravention of State or local law, as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates °f lunatics, or in any other fiduciary capacity in which State hanks, trust companies or other corporations which come into competition with national banks are Permitted to act under the laws of the State of Florida, the exercise of all a4ch rights to be subject to the provisions of the Federal Reserve Act and the regulations of the Board of Governors of the Federal Reserve System. f "This letter will be your authority to exercise the ,I'ducierY powers granted by the Board pending the prepareof a formal certificate covering such authorization, I hich will be forwarded to you in due course." Approved unanimously. Thereupon the meeting adjourned. q9o,u, )--ns ecretary. Approved: Chairman.
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