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393 A meeting of the Board of Governors of the Federal Reserve SYstem. was held in Washington on Friday, March 22, 1940, at 11:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szynczak Draper Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters herein4ft ex. referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the l'edsral Reserve System held on March 19, 1940, were approved uneniraollay. Telegrams to Mr. Kimball, Secretary of the Federal Reserve 8411k of New York, Mr. M.CLarin, First Vice President of the Federal leserve Benk of Atlanta, Mr. Dillard, Secretary of the Federal Reiserve Bank of Chicago, Mr. Gilbert, President of the Federal Reserve 84111c of Dallas, and Mr. Hale, Secretary of the Federal Reserve Bank Of 8311 Francisco, stating that the Board approves the establishment WIthaut change by the Federal Reserve Bank of Dallas on March 16, by the Federal Reserve Bank of San Francisco on March 19, and by the Fed"al Reserve Banks of New. York, Atlanta, Chicago and San Francisco on kerch 21, 1940, of the rates of discount and purchase in their existschedules. Approved unanimously. 394 •3/22/40 Bonds, each in the amount of Ta0,000, executed under dates of March 14 by Mr. Frank H. Neely as Federal Reserve Agent, March 6 by Mr. 3.. R. McCravey, Jr. as Assistant Federal Reserve Agent, and March 5, 1940) by Miss Genevieve M. Barnett as Alternate Assistant Federal Reserve Agent, all at the Federal Reserve Bank of Atlanta. Approved unanimously. Letter to MT... Parker, President of the Federal Reserve Bank of Atlanta, reading as follows: "In accordance with the request contained in your letter of March 15, the Board approves the designation as Special Assistant Examiner of each of the following employees of the Reserve Bank: Fred L. Williamson Justin M. Reese James B. Forbes W. H. Blackwood, Jr. Carl E. Jones "The Board approves, also, the designation as Special Assistant Examiner of each of the following employees of the Nashville Branch in order that they may assist in the forthcoming examination of the Commerce Union Bank of Nashville: S. H. McGee M. L. Miller Jesse Hooper Frank J. Davis Curtis Newson "Approval of the above designations is given with the understanding, of course, that the employees listed will not be transferred permanently to examination work without the Board's approval." Approved unanimously. Letter dated March 21, 1940, to Mr. Young, Vice President of the Federal Reserve Bank of Chicago, reading as follows: "In accordance with the request contained in your letter of March 15, the Board approves the designation 395 3/22/40 -3- "of Harold L. Noelting, an employee of the Reserve Bank, as a special assistant examiner." Approved unanimously. Letter to Mr. Nardin, Chairman of the Federal Reserve Bank of St. Louis, reading as follows: "Referring to Board of Governors the rate of $4,200 Louisville Branch, 1940." your letter of March 15, 1940, the approves the payment of a salary at per annum to Mr. Fred Burton, Cashier, for the period March 15 to May 31, Approved unanimously. Memorandum dated March 16, 1940, from Mr. Bethea, Assistant Secretary, to the Board's Personnel Committee, referring to the propreviously authorized by the Board with respect to the selecti "of officers and employees of the Board of Governors and the 4deral Reserve banks to attend the Graduate School of Banking at Iltgers University, and recommending that the following named em1310Yees of the Board's staff be selected to attend the 1940 resident ilession of the Graduate School of Banking, with the understanding that they will be allowed the necessary leave with pay in addition to reg414r annual leave and be reimbursed for their transportation expenses tl'ola Washington to New Brunswick, New Jersey, and return (Assistant 4deral Reserve Examiner English's transportation to be reimbursed l'r°1111 whatever point he may be stationed to New Brunswick and to the eaeral reserve bank which may be under examination at the time he te released from Rutgers), and for their registration and resident 396 /22/4.0 -4- extension tuition fees: Secretary's Office - S. R. Carpenter (for the third year) Legal Division - Frederic Solomon (for the second year) Division of Examinations - J. Fred English (for the second year) Division of Bank Operations - J. E. Horbett (for the first year) The recommendation had been approved by the Personnel Committee. Approved unanimously. Letter to the board of directors of "The Pendleton Banking Co.", l'endleton, Indiana, stating that, subject to conditions of membership tUmbered 1 to 6 contained in the Board's Regulation H and the following aPecial condition, the Board approves the bank's application for membership in the Federal Reserve System and for the appropriate amount of Stock in the Federal Reserve Bank of Chicago: ttry 7. Such bank shall make adequate provision for depreciation in its banking house and furniture and fixtures." Approved unanimously, together with a letter to Mr. Schaller, President of the Federal Reserve Bank of Chicago, reading as follows: "The Board of Governors of the Federal Reserve System approves the application of 'The Pendleton Banking Co.', Pendleton, Indiana, for membership in 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. Two 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 Director, Department of Financial Institutions, for the State of Indiana for his information. "Since it is understood that in the State of Indiana trust funds deposited in the banking department of a bank are preferred claims in event of liquidation of the bank, You are authorized, of course, in accordance with the 397 -5"general authorization previously granted by the Board With which you are familiar, to waive compliance with condition of membership numbered 6 until farther notice. "It has .been noted that the bank operates an insurance department and it is assumed that your office will follow the matter of the bank showing the assets and liabilities of the department in reports of condition and published statements. "It appears that a separate trust committee has not been appointed and that, although the president of the bank acts as trust officer, he has not been designated as such since 1937. It is suggested that you request the appointment of a trust committee and the designation each year of a trust officer." Letter to the Presidents of all Federal Reserve banks, reeding as follows: "In reviewing the Minutes of the Meeting of Conference of Presidents held in Washington December 12, 1939, it is noted that after consideration of the topic 'Acceptance of immediate-credit cash items without description' the Conference voted 'That the question as to Whether a Federal Reserve bank will accept immediatecredit cash items for collection without requiring that any description of such items be either sent to it or maintained by the bank forwarding such items to it Should be left to the determination of each Federal Reserve bank in its discretion.' This action of the Conference of Presidents goes beyond that recommended by the Standing Committee on Collections in its report dated September 20, 1938. "For the information of the Board it will be appreciated if you will advise us to what extent your bank and branches, if any, accept cash items for collection without description from member banks in your district, member banks in other districts, or other Federal Reserve banks, Which are payable (a) in the city of your head office, or one of your branches, (b) in your district outside such cities, or (c) outside your district, and the arrangements, if any, you have with the forwarding banks for furnishing your bank with a description of the items in case description is needed by you. 398 3/22/40 -6- "Since the revised check collection procedure that went into effect September 1, 1939 has now been in effect for six months, it will be appreciated if you will advise the Board as follows with respect thereto: 1. What have been the reactions of member banks of the various sizes and locations in your district to the revised check collection procedure? 2. As a result of the changes made in the check collection procedure, are member banks making greater use of your check collection facilities? Are any additional banks using such facilities? 3. In connection with the uniform provision contained in the check collection circular regarding the direct routing of cash items payable in other Federal Reserve districts, please advise (a) what average daily volume of items is considered sufficient to warrant your bank's declining to accept for collection such items unless they are routed direct to other Federal Reserve banks and branches, (b) the number of your member banks, if any, divided as between banks located in your head office and branch cities and banks located elsewhere in your district, that are depositing with you an average daily volume of items in excess of the number reported in (a) above, and (c) the largest average daily number of items payable in the territory of another Federal Reserve bank or branch being accepted from any bank in your district without requiring that they be routed direct, whether the bank is located In a Federal Reserve bank or branch city, end the total average daily number of items payable in all Federal Reserve districts (other than your own) which you receive from it. 4. If any basis other than volume of items is used in deciding upon the policy of your bank in connection with the direct routing of cash items by your member banks, please describe such basis. 5. Are any member banks now depositing interdistrict items with you which they formerly forwarded direct to other Federal Reserve banks? If so, how many banks and what volume of items are involved? "Any other information which you believe would be of interest to the Board in this connection will also be appreciated." Approved unanimously. 399 3/22/40 -7Letter to the Comptroller of the Currency, reading as follows: "It is respectfully requested that you place a special order with the Burem of Engraving and Printing, supplementing the order requested June 14, 1939, for the Printing of Federal reserve notes of the 1934 Series in the amount and denomination stated for the Federal Reserve Bank of New York: Number of Amount Denamisheets nation 150 A8,000,000" .10,000 Approved unanimously. Thereupon the meeting adjourned. Secretary. Chairman.
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