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r
MinuteE,. of actions taken by the .-3or0. of Governors of the
ed
'eral Reserve Eystem on Wednesday, May
P.REFEITP:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Marti.n, Chairman
E,zymczah
Evans
Powell
Mills
Robertson
Mr. Carpenter, Secretary
Mr. Sherman, AsFiLAunt LecnIArj
Mr. LKenyon, AssiLtant
Minutes of the meeting of the Board of Governors of the Federal
'
7e 4ttem with the Federal :-.dvisory Council held on May 20, 1952,
were e„
14r°ved unzaiimously.
eecierea
Minutes of actions taken by the Board of Governors of the
11-serve Eystem on May 20, 1952, were -22rove
Menlorandum dated My 201 1952, from Mr. Betha„
4\74 .
.'31°21. of ilslirtinistrative S:ervices, recommending that the resi6-natiol,
(It L
iliian B. Hughes, Trainee (IBM Key Punch Operator) in that
bbria.
1°11" be accepted to be effective, in accordance with her request,
e't the
el°8e of business May 19, 1952.
Approved unanimously.
l'imorandum dated May 20, 1952, Crau Mr. Vest
General Counsel,
that A. M. stone, Clerk-2tenorapher In the Legal Division,
4(1 Etipplied for
retirement on account of distih5lity under the Board:3
tte erlt
Plan, effective June 1, 1952.
Noted.
4.11146,,t.".
5/21/52
-2Letter to Mr. Rill, Vice President, Federal Reserve Bank of
readinc as follows:
In accordance with the re,Luest contained in your
:
ter of May 16, 1952, the Board al, roves the appointReenof
as an crammer for the Federal
H.
eserve B.,111R of T'hilade3phia. I" the appointment is not
4e effective June 1 as Planned, please advise us.
It is understood that Mr. Sol_le has agreed to liqate his indebtedness at the nation-11 banks and will
ce the mortcage loan at the State pepil,er bank with
a nonmember bank or buildinL and loan association
"aPProval or his appointment."
Aproved unanimously.
Letter to Mr. i.:tetzelberLer, Vice 1:resident, Federal Reserve Bank
Of c
vela/A
readinL as follows:
letteaccordance with the request contained in your
of May 15, 1952, the Board approves the appoint. er,t
of Kenneth Clemmer Robinson, c.s an assistant e:{aminer
the Federal Reserve 'Rank of Cleveland.
"Please advice us of the date uoon which the appoint'lit becomes effective."
Approved unanimously.
°r ole
letter to Mr.
-tetzelberger, Vice President, Federal Reserve Pr:ph
velana, readinc as follows:
lett In accordance with the request contained in your
zenter of May 1), 1952, the Board r.f:oproves the appoint:: the ,of John A. Poelking as an &,,s!--,ist;_mt e::aminer for
Vederal Reserve Bank of Cleveland.
"Please advise us of the date upon which the ajpottne/lt
becomes effective."
Approved unanimously.
5/21/,2
-3Letter to 1,ir. LtetzelberL:er, Vice Tres idelat, Federal Reserve Brik
Cleveland, reading as follows:
el "Reference is made to your letter of /:,1: 16, l92, en„ aeing a certified copy of a resolution -)dopted by the Board
.Directors of The Commercial 737.1nn,-, ,7; Trust ConDany, Looster,
'signifyinc its intention to withdraw from menThership in
thl°
ra e Federal Reserve System and re4uestinL: waiver of the six
b°111-thE31 notice of such withdrawal. It is understood that the
ra
ollk hac applied to the Federal Deposit Insurance Corporation
ec
t,ntinuance of insurance of its deposits.
Boar(' of Governors
iv 111 vieof your recommendation, the
tae requirement of
months' notice of Iviithdrawal.
°11-11-61Y, upon surrender of the Federal Reserve Bank stock
jusi,
ohi-e,-L to T e ,,cunercial
0h
Trust Company, iooster,
EaLlinu
2)you are authorized to cancel such stock and make a-jeleutDtriate rerund thereon. Under the provisiont, of the Board'
L)• 73)..14-8) the bani% may
:
r
acc
February 19, 19n
r11)11Q1 the termination of its rat;mberchip at any time with;
ur monthnths of the date of th-T:_ letter. If a loner period
le
reclu1red the bank should requet t
plea
extension of time.
$.e.
za.Ak•k _
advise when cancellation is effected and refund is
'The certificate of membership issued to the bank should .
Ste.t ailled-, if possible, and forwardd to the Board. The
of the bank s
Pro-0,_inkinG authorities should he LAv7_
e(-1. withdrawal from membership nd the (7...ite such withol
becarleb effective.
doe, "It i-s noted that the bank is Jithdrawinb l'ecause it
ttat 11°t have the minimum capital stock retluired by Federal
lite for the establishment of on out-o2-town branch.”
ob
Approved unanimouL;ly.
letter to the Preuidents of all j:'ederal Re:,erve Banks, readin3
'
allows:
The re
e
commendations of the Committee on Collections
meetiuL; of the Conference
of Pre .?1,ultine, accepted at the
eluents last September, included the recommendation -That each Federal Reserve Bank and branch
analyze the data submitted in the report with
arid,
t.
a view to developing methods of reducLA,
float absorption beyond those assumed as
a matter of Bank policy. (The report referred to is 'Federal Reserve Trst
Survey - 1,eek of July 16-21,
by Mr. M. E. Lysen, 0i,eratinL Research u- ficer of the Federal Reserve Panl. of Mqnneapolis, dated September lL, 1921.)
The Board is deeply interested in develolmehts reEarai
the amount and fluctuations in the ane,.4at of float.
'be appreciated, therefore, if you will advise the
kl as to the result of such anal-„,Les or t,tud,ies at your
nd as to any significant developpleats in the matter
Of
aino
absorption. •Iny suggestions for reql, cinL, the
re,1-1
!of float absorbed other than that absorbed as a
." of Bank .„
Al
Policy with respect to time schedules will
,,so
13,
appreciated."
BanI
Approved unanimously.
Ylemorandum dated May 12, 19)2, from Mr. Leonard, Director,
11\14ic311 Of Bank Operations, recommending, for reasons sLated
t t '"113mection
Payment of Interest
(d) of section 3 of Regulaticn
tenot
13e amended to read as follows, effective July 1, l92,
Drovicied.
the
Federal Deposit Insurance Corporation took similar acre5
to its comparable regulation:
Grace periods in computing interest on savings
- A member bank may -pay interest on a savin,r
. any
received during its first 10 'business days of
tke.C
i e'r month commencing a regular quarterly or semi-anof 411'hterect period and during its first 2 buslne,-,s days
-.Y,,,,?ther calendar month at the applicable maxinalri rate
Drese
eble:i.
:
Qed Pursuant to subsection (a) of this section calfrom the first day of such calendar month until
de
de-Dorsi-T.:Posit is withdrawn or ceases to constttvte a sEifinLs
tInder the provisions of this regulation, whichever
'Lirct occur; and a member bank may pay interest on a
depoe.r..)
t-c7ct7,::
5/21/52
-5-
8
a allings deposit withdrawn durIng its last three business
:
aYr3 of any calendar month ending a regular quarterly or
'emi-annual interest Period at the applicable ma:-:imum rate
Ie. 're2cribed pursuant to subsection (a) calculated to the
/la of such calendar month."
Approved unanimously.
Letter to Mr. Earhart, 1:resident, Federal Reserve Bank of Fan
Prelictsc0
reading as follows:
Tt
accordance with your conversation with Mr. l'oyes,
withuliaerstand thHt your Bank will Tirocess for compliance
pro Regulation Y certain construction projects of Continental
w4rrties Company of Oakland., California. Conies of the
a l'enlents which were forwarded to us in_conjuncton with
.
to tter
from Continental, dated, 1,7!'rch N), 3:222, were sent
Millard shortly after their receipt so that
Your ,'
yoljr. -Dank would have information al-)out matters affectinE
Rene district which were beilv; considered by the Board.
coPies of all inform?)tTon .1,11.cil we nave received
lentinental Properties Ccriv,ny '-re in your possession.
by .14 "vie have received tfre letter and statements forwarded
com1):* O. T. Burroughs, Mancer of Continental Properties
case-4Y) but are unable to make decisions respectinL,. each
inasmuch as Mr. Burrouhs does not state the problens
raaterr
j
i °f Regulation 7 and, therefore, necessary factal
obse
iz :Laskin/7. We have, however, made the followin6
rvations:
1. It is porsible that cone of the construction
,
ams were started before August 3, 1950;
1L,tion 7 would not be involved in
such cases.
2. In
other case:, it woul'', room that construcLer
' 7 tarted
tion programs mt)
Allust 3, r,.-/),
FebruJ
, uncompleted.uncompleted.lite L
.
so
ord
ly section ,(')
-7:ledrienow
Provided, c course,"cinc is arr,1 t(
within 32 days - Ler complsLion.
3. ;iith
reference to those modernization
cl rl), 1 ,- 1,
which were started beforc
=
•
5/21/52
-6"to which the regulation apiLiei hut OA iitch
clr,rific,ttion Oi
work vas susiDende0
the effect of the regulation, we vould be
inclined to Dermit com-pletion of ucb a -(- ernization and apply the exemption ).r- (--C:LC
in section 5(k).
toda:We
. enclose a copy of a letter we L're sending
v) informing hin that the reder-11 iiercrve 7anl, '
c,117
of
will process the application,.
e also enc"tc_f_
p4etter we have forwarded, c-it your eligLer,tion, to :- , t, cr
,_'eral Reserve Banks in whose districts the varic-us _]r)._Lrtles
e located; stating the arrangement made between you 7,1d the
ard for handling this situation.
the4e Ereatly appreciate your 12 indness in aroeir.g to process
e shall also asreciate hearing
ro 'n6inent3l transactions.
le 111 You when You have had -411 o._--)ortunity to consider the proslas presented by Continental."
g
Approved un1-2.ninousI,T, together
with letters to the Presidents of the
Federal Reserve Banks o;' ichmond, St.
Louis, Kansas City, Chico, I: huiui oils,
and Dallas advising them of the :)rocedure
which would be followed.
Letter to the Presidents of all Federal Referve iiao5, 1Ter,ared
,
c‘ccord
ance with action taken by the Board on nay 13, 1(;)2, reading as
"Fcr a number of years the Boarq has followed the
1)l'act*ic
- the
azol„, e of reporting to you at the end of each month
seti-,A of the Reserve Bank's balance in the Interdistrict
rez 4-ement Fund, and requesting official continuation with
fla Peet thereto. Accompanying such request you have been
n the accoZished with a statement showing trant.Hctionu
tiolititl.during the month and the balance at the end of the
1- 0110wing a review and revision of the Botrd's inter,:'
Procedures relative to the Interdi3trict ettlenent
con — rmaIt has been decided not to require
'
of these balances in the future; however, the v5-u,,,1
(4.1“
5 21/52
-7-
coyitinue to be furnishei, o yCl.
stetellent
is understoeCi,
course, that any discrepancy etwe
the
statement awl vour records will be promptly 1,rn,"
_
Board's attention. Tt is also assumed that
n11 continue
to notify the Board by telegraph
any difference disclosed by checking the previous ii
:
ci:
a lance
reportod in the daily settlement telegram or any
ifference otherwise noted."
It
Approved unanously, together
with a simIlar letter to the Fecler'll
Reserve "Jults at all Federal
Banks.
@FedFRASER