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Minutes of actions taken by the Board of Governors of the FedServe System on Friday, March 3, 1950. PRESENT: Mr. Mr. Mr. Mr. McCabe, Chairman Eccles Szymczak Draper Mr. Carpenter, Secretary Mr. Sherman, Assistant Secretary Mr. Kenyon, Assistant Secretary Minutes of actions taken by the Board of Governors of the Federea. serve System on March 2, 19500 were approved unanimously. Telegrams to the Federal Reserve Banks of New York, Philadelphia, Chicago St. Louis, and San Francisco stating that the Board approves e establishment without change by the Federal Reserve Bank of San Co on u February 28, by the Federal Reserve Bank of St. Louis on cuirch. 11 and by the Federal Reserve Banks of New York, Philadelphia, and g° on March 2, 1950, of the rates of discount and purchase in their ektatb, -g schedules. Approved unanimously. Memorandum dated February 27, 1950, from Mr. Bethea, Director " 114 'a -I-vision of Administrative Services, recommending that the titei be 0) .08 lEttli°n of Mrs. Muriel S. Duncan, a stenographer in that Division, ePted to be effective, in accordance with her request, at the Of b usiness February 28, 1950. Approved unanimously. Melne'ralldum dated March 1, 1950, from Mr. Millard, Director of 3/3/5o -2- t1" 47ision of Examinations, recommending increases in the basic 411411a1 salaries of the following employees in that Division, efteetilre March 5, 1950: 45 144 m, 141 Goodman L. Brien, Jr. J. McClelland Radford, Jr. Federal Federal Federal Federal Title Reserve Reserve Reserve Reserve Examiner Examiner Examiner Examiner Salary Increase To From M,600 $8,400 71200 71400 7,200 7,400 7,200 7,400 Approved unanimously. Memorandum dated March 31 1950, from Mr. Bethea, Director q the n4 --vlaion of Administrative Services, recommending the appoint- et °f James Thomas Stewart as a laborer in that Division on a tem1))r'ary basis for a period of two months, with basic salary at the rate "2)120 per annum, effective as of the date upon which he enters 111)°4 the Performance of his duties after having passed the usual physteal examination. Approved unanimously. Memorandum from Mr. Townsend, Solicitor to the Board, recOIL OiKeer eritia g that the Board authorize the reimbursement to Mr. Gregory ' e an attorney on the staff of the General Counsel of the Fed- eserve Bank of New York, on loan to the Solicitor's Office for 4gal. 1g °I1c in connection with the Transamerica case, of an amount t 44(1 tie ° the cost of necessary transportation between San Francisco 1c3rk, and return, for the purpose of settling the matter of a 3/3/50 -3- leele Ithich he holds upon a house there and to store the furniture 1111-01, 44.8 presently contained in this house. Approved unanimously. Memorandum dated February 21, 1950, from Messrs. Garfield ' 44g, Division of Research and Statistics, recommending that the B authorize a revision of the index of industrial producti04 t be undertaken as a special project of that Division, and that °4 increase in the budget of this Division be approved in an 1/14414t 8---''iCient the to cover the additional personnel required for Project, as outlined in the memorandum. Approved unanimously. Letter to Mr. F. C. Gilbody, Assistant Cashier, Federal Reserve of Dcston, reading as follows: t4 "This refers to your letter of February 21 regarding e and Penalty of $185.73 incurred by The Home National Bank eTrustii Company of Meriden, Meriden, Connecticut, on a encY in its reserves for the period ended January 15 j ) 1950 and the penalty of $279.38 for the period ended '"IlarY 31, 1950. el4 , 4"It is noted that the deficiency resulted from a ge;''ea1 error incident to a change in the subject bank's : /11 41 ledger from an old-fashioned bound ledger to a bt14ille operated loose-leaf system; that, had the subject of received prompt notice from the Federal Reserve Bank the deficiency occurring in the first half of January, It of 3Ould have eliminated the deficiency for the last half the TtarY* and for the first period in February; and that kito-tioiect bank has had an excellent record with only two r deficiencies in its reserves over a period of five Years. to 4-n the circumstances, the Board authorizes your bank -1-ve assessment of the penalty in both of these cases." Approved unanimously. Telegram to Mr. H. F. Slade, Vice President of the Federal Reserve 3/3/5o —4- Of San Francisco, reading as follows: "Relet February 11 and Urtel March 1. In view your recommendation and trust company's commitment re sale ditional common stock within six months from March 1, approves establishment and operation of a branch in Woodland, California, by American Trust Company, San Francisco, California, provided the purchase of assets and E3asumption of deposit and trust liabilities of Bank of Woodland National Association and Yolo County Savings Bank lE ; effected substantially as proposed, branch is estabvs shed within six months from January 31, 1950, as required f LT State authorities, and with understanding that counsel or Reserve Bank will review and satisfy himself as to leof all steps taken to effect absorption and establish V "'When advising trust company of Board's action please State that a'ete Board would urge that the trust company take steps ; 1 1 rapidly as possible further to increase its capital. oftle Board realizes unusual conditions resulting from growth activity in California during war period, it is the view • the Board that in the absence of special circumstances re14.ther expansion should not be undertaken without subtiantial improvement in capital position in addition to issuance of the 100,000 shares now contemplated." Approved unanimously. EAINIce Letter to Honorable Maple T. Han, Chairman, Federal Deposit InCorporation, Washington 25, D. C., reading as follows: "In accordance with the request contained in your letter of February 27, 1950, the Board of Governors of the Fed su,2rea Reserve System hereby grants written consent, pur' of 41t to the revisions of subsection (k) (2) of Section 12B be the Federal Reserve Act, for examiners for the Federal Norelt Insurance Corporation to make an examination of the 1,Tto!,'1113°rt Trust Company, Northport, New York, in connection Iiiti;r4its application for continuance of insurance after --4!awal from membership in the Federal Reserve System. -There are no corrective programs nor unfulfilled ti7• eeenlents pertaining to the bank in connection with which ard would suggest incorporation of conditions for con( ! tina 'lig its status as an insured bank." Approved unanimously. C. 4 Chairman
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