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724 A meeting of the Board of Governors of the Federal Reserve Systaem was held in Washington on Tuesday, May 18, 1957, at 2:30 p.m. PRESENT: Mr. Mr. Mr. Mr. Eccles, Chairman Broderick McKee Davis Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman Co nsideration was given to each of the matters hereinafter eerred to and the action stated with respect thereto was taken by the BOarc l : The minutes of the meeting of the Board of Governors of the Reserve System held on May 17, 1957, were approved unanimously. Telegram to Mr. Sargent, Secretary of the Federal Reserve Bank 411 , y lirancisco, stating that the Board approves the establishment Ifith°11thn, e---ge by the bank today of the rates of discount and purchase ir elp4 „sting schedule. Approved unanimously. Letter to Mr. Hill, Vice ?resident of the Federal Reserve Bank Of philet delPhia, reading as follows: 11 "Reference is made to your letters of April 30 and May ti! () 19°7, regarding the modification or cancelation of condicoml. 'of membership numbered 8 to which the "Industrial Trust 48 12,a,PY", Wilmington, Delaware, is subject, and which reads : Ixoept with the approval of the Federal Reserve Board, he ratio of industrial department or small loans to Your aggregate unimpaired capital, surplus and undivided 1?rofit8 and time deposits will not exceed the ratio ex-sting February 11, 1950.1 725 5/18/37 -2"The Industrial Trust Company was admitted to members i_1111) in 1930, and since that time the Federal Reserve Act has been amended to provide specifically for the admission to membership in the System of dlorris Plan banks and other incorporated banking institu tions engaged in similar busiaes, as a result of which the trust company would be eligible for admission to membership at this time without any restriction on the volume of its industrial loans. "In view of the circumstances, including your comments ? 1 garding the bank and its management, the Board, in accord-,with your recommendation, cancels condition of memberc numbered 8 which was accepted by the Industrial Trust °mPany. Please advise the trust company accordingly." Approved unanimously. Letter to "The First National Bank of Lake City", Lake City, Florida, reading as follows: refers to the resolution adopted on March 5, 1937, '?he board of directors of your bank signifying the bank's !1”lre to surrender its right to exercise the trust powers willoh have heretofore been granted to it by the Federal Re:erve Board, now known as the Board of Governors of the FedReserve System. "The Board understands that your bank has been discharged ual,otherwise properly relieved in accordance with the law of °f its duties as fiduciary. The Board, therefore, has isSued no ., a formal certificate to your bank certifying that it is co longer authorized to exercise any of the fiduciary powers severed by the provisions of section 11(k) of the Federal Rerve Act, as amended . This certificate is inclosed herewith. "In this connection, your attention is called to the fact that se U, under the provisions of section 11(k) of the Federal Reas amended, when such a certificate has been issued by Board of Governors of the Federal Reserve System to a pr'lOnal bank, such bank (1) shall no longer be subject to the ren-eions of section 11(k) of the kederal Reserve Act or the s f4-L5t10ns of the Board of Governors of the Federal Reserve rs. , etem made pursuant thereto, (2) shall be entitled to have t,ned to it any securiti es which it may have deposited with btate or similar authorities for the protection of private Court trusts, and (3) shall not exercise any of the powers 726 6/18,47 covered by section 11(k) of the Federal Reserve Act except with the Dermission of the Board of Governors of the Federal Reserve System. "In your letter of February 12, 1937, to the Federal Reserve Bank of Atlanta, you requested that the certificate certifying that your bank had surrendered its trust Powers be issued in duplicate in order that you might file one copy with the State authorities and retain one in your files. Accordingly, in addition to the original certificate mentioned above, a certified copy of such certificate is inclosed." Approved unanimously. Letter to Mr. Schaller, President of the Federal Reserve Bank Of chic ago, reading as follows: . "Reference is made to your letter of May 7 in connection with deficiencies in reserves of the Farmers State ank, Belvidere, Illinois, during the semi-monthly reserve computation periods ended on April 15 and April W. "It is noted that the deficiencies were caused through errors in the semi-monthly reports, which have since been ! orrected, and that this is the first time the bank has been Qeflcient in reserves since it became a member of the FedReserve System. In view of these circumstances, the d will interpose no objection to your waiving the pen1dties referred to." Approved unanimously. Thereupon the meeting adjourned.
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