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673 A meeting of the Board of Governors of the Federal Reserve SYsteta W as held in Washington on Monday, May 13, 1940, at 1130 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr.. Eccles, Chairmen Szymczak McKee Davis Draper Mr. Mr. Mr. Mr. The after action stated with respect to each of the matters hereinto ?sclera). Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman WRS taken by the Board: The - minutes of the meeting of the Board of Governors of the Reserve System held on May 10, 1940, were approved unanimously. Mer norandtrn dated May 9 1940, from Mr. Goldenweiser, Director "the D ivision of Research and Statistics, recommending that, for the reason stated in the memorandum, Miss Gretchen Hill be appointed a Peritanent basis RS a clerk in the Division, with salary at the rate of t1,440 per annum, effective as of the date upon which she ters Itpon the perform ance of her duties after having passed satisrEletclrillr the usual PhYsi cal examination. Approved unanimously. tt_ Memorandum dated May 4, 1940, from Mr. Peulger, Chief of the vieion 0. 'L Exa minations, recommending that, for the reasons stated the In_ =Laorero_ 'tura, Assistant Federal Reserve Examiner Herold J. Newman be 131. COloted '10 the Positio n of Federal Reserve Examiner. in 674 5/1V40 -2In accordance with the above recommendation Mr. Newman was appointed an examiner to examine Federal Reserve Banks, member banks of the Federal Reserve System, and corporations operating under the provisions of Sections 25 and 25(a) of the Federal Reserve Act, for all purposes of the Federal Reserve Act and of all other Acts of Congress pertaining to examinations made by, for, or under the direction of the Board of Governors, of the Federal Reserve System, and was designated as a Federal Reserve Examiner, effective immediately. °t the Mellorsndum dated May 9, 1940, from Mr. Goldenweiser, Director sion of Research and Statistics, recommending that George 13°Ilertri Jnnior leave Economist in the Division, be granted an additional Or absence without pay for each time as may be necessary during first half of June 1940 in order to complete the semester's work the Litteuer School of Harvard University, and that the Board conthke to make co ntributions on his behalf to the Retirement System With the unde rstanding that he continue to make his own contriIkt1ons. the Approved unanimously, with the understanding that Mr. Doherty will return to the employ of the Board not later than ' Tune 15, 1940. 14tat TelegMm to Mr. Fry, Vice President of the Federal Reserve Or P4 J-uamond, reading as follows: sirtust"Retai May 13. Board approves designation of B. F. 11°11g es special assistant examiner with understanding 675 5/13/40 -3will not be transferred permanently to examination wc)rk without Board's approval." Approved unanimously. Letter dated May 11, 1940, to the board of directors of the 'Lorenzo State Bank", Lorenzo, Texas, stating that, subject to condit1 °1118 or raerabership numbered 1 to 3 contained in the Board's Regulation and the following Special condition, the Board approves the bank's Etaication for -4)riate membership in the Federal Reserve System and for the amount of stock in the Federal Reserve Bank of Dallas: "4. Such bank shall make adecuate provision for de11 4Z1t ei s. o in its banking house and furniture and APproved unanimously, together with a letter to Mr. Gilbert, President of the Federal Reserve Bank of Dallas, reading as follows: or "The Board tena e , of Governors of the Federal Reserve Sys_ Lcr.,t"Proves the application of the 'Lorenzo State Bank' syai"z°, Texas, for membership in the Federal Reserve clo subject to the conditions prescribed in the en1304:letter which you are requested to forward to the slich °D Directors of the institution. Two copies of letter are also enclosed, one of which is for your warA ,and the other of which you are requested toforthe C ommissioner of Banking for the State of "for his information. kett "It has been noted that your office will follow the the er c)f the bank's reducing to within statutory limits eceas balance with a nonmember bank." Letter 4 vo Mr. Hill, Vice President of the Federal Reserve Bank NI ecialPhia, reading as follows: Colice : Ilt:r.euTaiss made to your letter of May 6, 1,940, 1,rust ption by The U Union Banking & 676 5/le3/40 -4"CmaPanY of Du Bois, Pennsylvania, Du Bois, Pennsylvania, !State member bank, of the deposit liabilities of the ileoples State Bank, Du Bois, Pennsylvania, a nonmember bank, ich Wes effected as at the close of business on May 4, -40940) with the approval of the Secretary of Banking of the om monwealth of Pennsylvania. 4.4 "It would appear from the comments and other informa;Ion contained in your letter that the transaction die not Scope in enY change in the general character of assets or i. Of corporate powers exercised by the rember bank with„the meanin g of the general condition numbered 3 under it was admitt ed to membership. Therefore, the Board si„, interpose no objection under the condition of member' 111) to the transaction.” n Approved unanimously. Latter dated May 11, 1940, to Mr. Gidney, Vice President of the °`4* Ileserve Bank of New York, reading as follows: 194n "RaceiPt is acknowledged of your letter of May 9, cii-) advisi ng that negotiations between the National 1407.v.13ank of New York and the Bronx County Trust Compan y, :Xk, for the acauisition by the latter of three bra it ;reS Of the Nation al Bank, have been terminated. the""e Plans are subseauently revived it is assumed that 1;Zetter will be again referred to the Board, since, or ew of the changed circumstances, the Board's letter 4111 26, 1940, is no longer effective." Approved unanimously. Letter to the Presidents of all Federal Reserve Banks, reading 1°13-ows: N7I :n order that the Board of Governors may have inloasi i°71 as to the extent to which different lines of Provi-:” and industry have applied for credit under the the --'mns of Sectio n 1.10 of' the Federal Reserve Act and bYtinnt to which they have been granted such credit eder Reserve banks, it will be appreciated if tarnis h the Board data up to May 31, 1940 regardclo ei c,;4=ztions in the form called for by the en- n 677 -5"It is desired that the information be tabulated seParately for applications for industrial advances and for applications for commitments to make industrial advances) classified in both cases according, to the enclosed classification by industries, end that the applicatimns in each group be arranred in the chronological ?Pcler of their receipt. In order to insure uniformity J-11. , the Preparation of these lists a few hypothetical ext e11113.tes are shown on the enclosed schedule. It is planned pl °i i\lillish a copy of the data, exclusive of names of apro;'"us, to the National Bureau of Economic Research 11 ,,se in a study that it has undertaken and, accordit is requested that the information be furnished mi..clUplicate. A supply of Form F.R. for use in subro; ting the desired information, and of Form P.R. use in reporting action taken on applications received etirrently, as reauested in the Board's letter S-187 of °ctob er 17, 19F9, is also enclosed." Approved unanimously. Tele grara to Mr. Schaller, President of the Federal Reserve f Chicago, reading as follows: tilist , "B i "rd approves employment law firm of Mayer, Meyer, Platt and Robert N. Holt, of Chicago, as special i so elof°r Purposes and on terms stated in your wire Approved unanimous: . Metiorandum dated May 1, 1940, from Snead, Chief of the 4visi°A of Bank Operations, recommending that, for the reason stated ill the nic"renclunl) e mimeographed tabulation of the replies received Nra the Federal Reserve Banks to the Board's letter of March 22, 1940 (1L43)) with respect to the revi sed check collectin o procedure, be a exIt t° 1111 Pederel Reserve Banks for their information. The memorandum 678 543/413 -6- stated that it seemed desirable that some effort should be made to blIng about greater uniformity among the Federal Reserve Banks with resPeet to their check collection operations than now exists and that ttismight be accomplished by taking the matter up with the individual liederal Reserve Banks concerned. The recommendation was approved unanimously, with the understanding that Mr. amead would confer with Mfr. Szymczak for the purpose of determining the manner in which the question of bringing about greater uniformity in the Banks' check collection operations Should be discussed With the Federal Reserve Banks involved. Thereupon the meeting adjourned. ecreta . ADDitve Chairman.
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