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754 A meeting of the Board of Governors of the Federal Reserve stemwas held in "Washington on Tuesday, May 8, 1945, at 10:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Thurston, Assistant to the Chairman The action stated with respect to each of the matters herein— after referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Ped„ 'ral Reserve System held on May 7, 1945, were approved unanimously. Letter to Mr. Sproul, President of the Federal Reserve Bank Or New York, reading as follows: "The Board of Governors approves payment of salaries to the following officers of the Federal Reserve Bank of N.ela York for the period May 1, 1945 to March 31, 1946, clusivel at the rates indicated, which are the rates by the directors, as reported in your letter of April 27, 1945: Name Annual Salary Title N Davis Assistant Vice $10,000 President aro1dM. Nessel Manager, Foreign Funds Control 7,000" Department p Approved unanimously. 411k of Letter to Ur. Clark, Vice President of the Federal Reserve 4taanta, reading as follows: 755 5/8/45 -2- "This refers to your letter of April 19, 1945, regarding the effect of the conversion of a State member bank into a national bank upon the authority previously granted such bank to accept drafts and bills of exchange UP to 100 per cent of its capital and surplus. "As stated in your letter, the American-Liberty Bank & Trust Company, New Orleans, Louisiana, was granted permission by the Board in 1922 to accept drafts and bills of exchange up to 100 per cent of its capital and surplus Pursuant to the provisions of section 13 of the Federal Reserve Act; the title of the bank was subsequently changed to American Bank & Trust Company; and on January 4, 1944, the bank converted into a national bank under the title 0f National American Bank of New Orleans. It is our un, c1?rstanding that the conversion was effected pursuant to . L1,e provisions of section 5154 of the United States Revised Statutes. "It is the Board's opinion that, upon the conversion of_ a State bank into a national bank under section 5154 f the Revised Statutes, the power previously granted to such State bank by the Board to accept drafts and bills of exchange up to 100 per cent of its capital and surplus Paasses by operation of law to the national bank; and that, oordingly, it is not necessary for the national bank to Ile a new application in order to exercise such power." j Approved unanimously, with the understanding that a copy of the letter would be sent to the Comptroller of the Currency. Letter to Honorable Robert F. Wagner, United States Senate, readllows: "In Mr. Lapsley's second letter, transmitted to us with Your 3r0 letter of April 21, he says 'I again request 1,ur consideration of amendment of the national banking es to require national banks to honor upon presentation cks drawn currency on deposit States against United with the banks.' ti 4Ie doubt if it would be possible to justify legislade011 imposing upon banks the general obligation to repay toP"its of currency the same day they are made. It seems keen that such a requirement would complicate bank booking without serving any useful purpose, for we doubt 756 5/8/45 -3- "if the business of depositors is seriously hampered by reservations against withdrawal of funds the same day they are deposited. "Mr. Lapsley also requests your consideration of the suggestion that deposit and checking account facilities be provided by the Government. It is not apparent whether ne would divorce this service from the making of loans or whether he has in mind that the Government would perform that function also. In any event, while we agree that 'no citizen should be denied the facilities of a bank account at the whim of national bank officials or anyone else', we are impressed by the fact that banking is a highly com— petitive business, and we doubt if the instances in which the officers of a bank decline business on a mere whim are sufficiently numerous to warrant action by Congress. "We have tried in the foregoing to present our objec— 'lone to Mr. Lapsley's proposals as clearly and briefly as P"sible, and trust that our comments will be helpful to Y,,ou in replying to him. His letters are returned herewith or Your files." Approved unanimously. Thereupon the meeting adjourned. Secretary. 413Proved: Chairman.
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