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1808 A meeting of the Board of Governors of the Federal Reserve SYst'era was held in Washington on Friday, November 16, 1945, at 10:30 PRESENT: Mr. Mr. Mr. Mr. Eccles, Chairman McKee Draper Evans Mr. Carpenter, Secretary Mr. Hammond, Assistant Secretary Mr. Connell, General Assistant, Office of the Secretary Mr. Morrill, Special Adviser Mr. Thurston, Assistant to the Chairman Mr. Smead, Director of the Division of Bank Operations Mr. Parry, Director of the Division of Security Loans Mr. Leonard, Director of the Division of Personnel Administration Mr. Thomas, Director of the Division of Research and Statistics Mr. Vest, General Attorney Mr. Brown, Assistant Director of the Division of Security Loans Mr. Wyatt, General Counsel There were presented telegrams to Messrs. Treiber, McCreedy, 4t1dCl°112e, Secretaries of the Federal Reserve Banks of New. York, Philadelphia, and Cleveland, respectively, Mr. Dillard, Vice Presi— derlt of the Federal Reserve Bank of Chicago, Mr. Stewart, Secretary c)t the Federal Reserve Bank of St. Louis, and Mr. Earhart, Vice Presi— lt °f the Federal Reserve Bank of San Francisco, stating that the zoard apnl, —c)ves the establishment without change by the Federal Reserve 134h Of St. L 441.1re t —011-is and San Francisco on November 13, and by the Federal anks of New York, Philadelphia, Cleveland, and Chicago on 1809 1:L1116/45 -2- U°11eniber 15, 1945, of the rates of discount and purchase in their ex18ting schedules. Approved unanimously. There was then presented a joint memorandum from Mr. Evans and *4 Par, dated November 161 1945, recommending adoption by the Board q the f -,01.4.owing amendment to Regulation 17: "AMENDM/A\IT NO. 19 TO REGULATION Ifr "Issued by the Board of Governors of the Federal Reserve System "Regulation W is hereby amended in the following respects effective December 1, 1945: a, "1. Section 8 entitled 'EXCEPTIONS' is amended by ty thereto a new subsection reading as follows: Is to be Demonstrators. - Any extension of credit which repaid within not more than 12 months and is 2 r .de to a bona fide salesman of automobiles in order to /nliance the purchase of a new automobile to be used by lpficiPally as a demonstrator. 4. Section 10 entitled 'RENEVvALS, REVISIONS, AND ADDITIcr as folit:INSTALMENT CREDIT' is amended in two respects, q at, (a) By adding the following sentence to Footnote 7 'ached to section 10(a): Whenever the regulation is !llended to increase the maximum maturity for any class ;1_ tra nsactions, the terms of repayment 'permitted in the m4st instance' in so far as they relate to the maximum to is ritY for such class of transactions shall be deemed ue the endmentterms applicable under the provisions of the afts,T3) By adding at the end of Option 2 of section 10(b), Lne words '12 months', a comma and the following: is ZtIlin 18 months in case the consolidated obligation addit.Insta1ment loan and no part of the proceeds of the tie12nal credit is to be used to purchase any listed arhavirg a cash price of 0.5.00 or more." Ma% 10 ‘arrY explained that the proposed amendment was in the 18_0 W16/45 _3_ ilature of a technical clarifying supplement to the amendment adopted bY the Board, No. 18, which became effective on October 15, 1945, and Ithich extended from 12 to 18 months the permissible maturity for in— tallment loans that were not for the purpose of purchasing consumers' clUrsble (1) good-. He also said that the proposed amendment would permit 4Y such loan made when the maturity was limited to 12 months to he its maturity extended to 18 months from the time when the loan wa8 laade, and (2) additions to installment loans on a consolidated bast*. uP to 18 months, provided the addition did not represent any er"tit for purchasing consumers' durable goods, and provided also that the e, flsolidated obligation conformed to the established rule that P4Yllierit3 shall be as large as those on the old obligation. The amend— nlent —4.441 also restore to the Regulation provisions in effect prior to maiy. 1942, which relieved an automobile salesman from having to meet the st andard requirements in purchasing a new car which was to be used Ete klernonstrator. The joint memorandum stated that the proposal had been dis— el%ed• 'WI the orf. cliened 'ce the Federal Reserve Banks and also cleared informally with of Price Administration, that the issues involved were dis— the am Irlth Mr. Ransom before he left on vacation and it was felt that en.dillent would have his endorsement, and that although it was on the lib eralizing side, it introduced no new principle and represented 4° chanpo. -1-n the Board's policy with respect to the regulation of con— e credit, 1811 11/16/45 -4- Mr. Parry said that the only point on which there was any dif— f"ence of opinion was the one relating to the extension of the ma— tilritY to 18 months on consolidated loans when the additional borrowing Ilas not for the purpose of purchasing listed articles and that after ighing all of the considerations and the suggestions of the Federal Re8er "Banks it was decided to recommend the change in the form pro— Posed in the amendment. 14r. McKee inquired whether it was not possible to make the Regillation less complicated in the interest of more effective compli41lee' lAr. Parry's response was that much more could not be done in that direction until the Board was ready to make more uniform the re— cIllinients with respect to down payments and maturity at which time 41c11 could be done to simplify its provisions. 10 of 4 Chairman Eccles inquired why the suggested changes in Section Regulation were considered to be necessary and Mr. Parry a4id th +1, at --67 grew out of Amendment No. 18, that logically they were P4rt of that amendment but were not covered by its language, and thz.L if • lt had been possible to consider the matter more fully at the tike, the proposed changes would have been included in that amendment. There was a discussion of how long the Regulation should be %/Ittinu ed in the postwar period and Chairman Eccles expressed the °"114n that as soon as the supply of consumers goods was rebuilt the '711-°n show.d be abandoned for the reason that when surpluses 1_812 11/16/45 —5— cleveloped and there was pressure to sell goods it would be next to im— P°ssible to enforce it. In the meantime he felt that the Regulation '11(14111d be streamlined as rapidly as conditions would permit in order t"lake it more effective and enforceable. At the conclusion of the discussion, Upon motion by Mr. Evans, the amendment to RegulationAlwas approved unanimously in the form set forth above with the under— standing (1) that it would be sent by wire to the Federal Reserve Banks with the re— quest that they print and distribute it to interested persons in their respective districts, and (2) that the Board would not issue any press statement but that the Reserve Banks would be requested to advise interested national trade associa— tions in advance of distribution. At this point Messrs. Parry and Brown withdrew from the meet14 ' arid Mr. Triffin, Economist, came into the meeting. tivea Mr- Evans referred to the informal conference of representa— Of central bin the Western Hemisphere which had been the klbject of or uezi.co. correspondence with the representatives of the central bank He said that when Mr. Triffin was in Mexico a short time 4e°, there WRS a further discussion of the matter and it appeared that theZisunderstanding between the central bank and the Minister of Fi— ti4li e as to the purpose of the conference had been removed when it was Itiacie clear that the conference would be only for the purpose of discus— 4itle 44d operating problems and exchanging information at the staff level, that plans were now going forward for the conference some time in the late winter or early spring' 1813 11/16/45 —6— In connection with the above matter Mr. Evans suggested that Urquidil Economist for the central bank of Mexico, who is in the thlited States at the present time, be invited to a meeting of the 8°41'd in the near future for the purpose of making a short statement for 1 4.5 or 20 minutes with respect to conditions in Mexico. In a discussion of the proposed conference, Mr. Triffin stated that , Lhe agenda for the conference would be prepared and the informal invi . tations would be sent by the central bank of Mexico but that repre8entati -ves of the Board would have an opportunity to make suggestions. Re a150 said that other central banks in Latin America are very much ested and that, while the first meeting would be held in Mexico eitY, i4 " was possible that some kind of permanent organization would be work ed out for other meetings at other central banks from time to eoke of elltire c Chairman Eccles stated that the United States was faced with the most delicate and difficult international problems in its "J-story and that the Board should not undertake to participate °Ilterence of this kind without informing the Treasury and State teParttap -44's of what the Board proposed to do. It was stated that the State D. 'Partment was fully informed regarding the matter and that, for Neons th which were outlined, it was believed it would readily approve e 4111'44gement. At the conclusion of the discussion, it was unanimously agreed (1) that Mr. Urquidi should be invited to be present 1814 11/16/45 -7at the beginning of the meeting of the Board on Friday, November 23, 1945, at 10:30 a.m. for the purpose of discussing current conditions in Mexico, it being understood that the plans for the proposed conference of central bank representatives would also be discussed with him at the same time, and (2) that following the meeting with Mr. Urquidi, Mr. Evans would make a recommendation to the Board with respect to its participation in the conference and who should attend as representatives of the Board and the Federal Reserve Banks. At this point Mr. Triffin withdrew from the meeting. *. McKee referred to a memorandum dated September 12, 1945, MI% Smead, in which it was stated that as a result of a reallocation of securities in the System open market account as of July 2, 1945,hp t-- Federal Reserve Bank of Boston received an additional alio4.1.4011 Of 415°,395,000 of Government securities which, of course, involired a co rresponding reduction in reserves; and that following payrtlerlt for the securities on July 2, the Federal Reserve Bank of Boston, through oversight, failed to make the proper bookkeeping entries with the result that a deficiency in reserves against deposits existed until 4ptember 9, when the error was discovered by the Board's Division of 4nk Op e rations. During this period the deficiency fluctuated between 0,942,000 and a 823,000 and could have t e been avoided by transferring i'leziourlt fro m the Federal Reserve gold certificate fund to the interdistrict Settlement Fund and pledging additional Government 1815 11/16/45 -8- securities as collateral for Federal Reserve notes. *. McKee stated that since the deficiency arose purely through (Arft.s4 1 'gut on the part of the Federal Reserve Bank of Boston in failing to —L4e the proper bookkeeping entries there was some question whether defiCienCY did in fact exist and that Mr. Schlaikjer, Counsel for the ll10 eserve Bank, was of the opinion that before the penalty tax of appro ximately =300,000 was paid to the Treasury all the facts in conr with the case should be presented to the Treasury. Mr. McKee bent °Y1 to say that there was a auestion whether the presentation to the T ' l easurY should be by the Bank only or jointly with representatives Of the Board, that whatever action was taken should be decided on Pr°mPt4 because the payment, if made, would have to be made this caleflr Year, and that he knew of no basis on which the Board could Pr'esent the matter other than to state the facts and abide by the TrRA. decision as to whether the tax should be paid. At the conclusion of a discussion, it was agreed unanimously that the matter be referred to Mr. McKee and the appropriate members of the Board's staff with Power to act. tiori MI% Bethea, Director of the Division of Personnel Administraentered the meeting at this point. Draper presented a memorandum dated November 15, 1945, rl'°111 the Personnel Committee recommending an extension of the after4°04 closing hour of the snack bar in the Board's cafeteria from 2:15 13,41 to 3:00 P.m. 1816 11/16/45 —9- Mr. Leonard stated that after the action taken by the Board at it8 meeting on August 28, 1945, at which the morning hours of opera- 4°11 of the snack bar facilities were changed from 8:15 to 11:00 to 8100 to 8:40, and the afternoon hours from 1:30 to 3:00 to 1:30 to 2:15, the Employees' Committee submitted a petition dated October 112 1945 'suggesting that the snack bar be kept open after the first hour or work each morning until 4:00 o'clock in the afternoon. The Personnel Committee, Mr. Leonard said, felt there was 4° jIlstification for change in the morning hour schedule but that it Iskluicl now be in order to extend the afternoon hours somewhat. The 1*°11aer closing hour of 3:00 p.m', which represented an extension of Oral ' . 45 minutes, was selected because of the Personnel Committee's un— cl" 'arlding that to keep the snack bar open beyond that hour would l'ecirs the employment of additional cafeteria personnel or the pay— lent of overtime compensation. In 464 a connection with the Committee's recommendation Mr. Leonard memorandum which it was proposed be sent to all employees of thelloard setting forth the standards which the Board would expect :he ePloYees to observe in order to avoid abuse of the snack bar torta 14r. McKee questioned the desirability of a memorandum in the 131'°11 " ed by the Personnel Committee and his comment was followed general discussion of whether there was any justification for 1817 WIL/45 —10- 44 extension of the hours during which the snack bar would be open 4171(11 if an extension were approved, what form the notification to the employees should take. At the conclusion of the discussion, Mr. McKee moved approval of the recommenda— tion of the Personnel Committee, effective immediately, with the understanding that the employees would be notified that such action was taken in response to their re— quest on a trial basis. This motion was put by the chair and carried. At point Messrs. Smead, Leonard, Thomas, Vest, Wyatt, and Bethea . withdrew from the meeting. this The action stated with respect to each of the matters herein114er referred to was then taken by the Board: The minutes of the meeting of the Board of Governors of the Pecleral Reserve System held on November 15, 1945, were approved unani1401184. tor 9, 1945, Memorandum dated November from Mr. Bethea, Direc— the, n sion of Administrative Services, recommending that the antlual salaries of the following employees in that Division be iller'eased, as indicated below, effective as of November 18, 1945: liAme 161114AI-a N'rld Hyde 4141 V. Sullivan eliffordHauser B. ellas R. Xvers Nichols Title Senior Guard Senior Guard Guard Guard Guard Salary Increase From To $2,100 2,100 1,980 1,980 1,980 $2,166 2,166 2,034 2,034 2,034 181F:? -11- 11/16/45 Lame , LeeRatliff L.1,1adalena Bertolini ibbie L. Sarah F. Boyd Corbin Teresa Crowell ar liagaret Dalton 14,1 , a 7 J• Enrico -Lahche E. 1 1 N. Peacock Sunderman '441sda Steiner Title Laborer Charwoman Charwoman Charwoman Charwoman Charwoman Charwoman Charwoman Charwoman Charwoman Salary Increase To From 1,620 1,620 1,620 1,620 1,500 1,560 1,620 1,500 1,620 1,620 $1,638 1,638 1,638 1,638 1,506 1,572 1,638 1,506 1,638 1,638 Approved unanimously. Letter to Mr. Creighton, Federal Reserve Agent at the Federal lleServbank of Boston, reading as follows: lett:a accordance with the request contained in your of November 6, 1945, the Board of Governors apIgoves, effective December 1, 1945, the appointment of A John F. Mooney as Alternate Assistant Federal Reserve gent to succeed Mr. Raymond J. Dunphy. mr. "This approval is given with the understanding that par M0oney will be placed upon the Federal Reserve Agent's r°11 and will be solely responsible to him or, during peIr dacancY in the office of the Agent, to the Assistant Reserve Agent, and to the Board of Governors, for the i_ e Proper performance of his duties. When not engaged performance of his duties as Alternate Assistant P .&'I edthe pederal Reserve Agent he may, with the approval of the or !ral Reserve Agent or, during a vacancy in the office se the Federal Reserve Agent, of the Assistant Federal Ree gent,A and the President, perform such work for the ria-c as will not be inconsistent with his duties as AlterFederal Reserve Agent. Mr. Mooney should elate the usual oath of office, which should be forwarded to t Board of Governors. A3f qu„telcitis assumed that the Board's approval will be renate or the payment of salary to Mr. Mooney as Altersistant Federal Reserve Agent." Approved unanimously. 1819 11/16/45 —12— Letter to Mr. Creighton, Chairman of the Federal Reserve Bank °Ib Boston, reading as follows: . "This is in reply to your letter of November 6, 1945, advising of the program of postwar salary adjustments ap— proved by the Board of Directors at its meeting of November 5 "The Board of Governors authorizes your Bank to exceed ill ximum annual salaries under the personnel classification 11;-e'n of your Bank in individual cases by as much as 15% of the first $3,000 of the present unadjusted maximum annual salary, provided that the total annual salary, including anY such excess over the maximum annual salary under the Personnel classification plan, shall not exceed $7,500. "In accordance with the discussions at the recent Joint meeting of the Board with the Conference of Presi— this authorization is granted as a temporary measure to lents take care of individual cases in the postwar situation Pending a comprehensive revision of the personnel classifi— eati°n plan. z It is noted from your letter that under the authori— (Vi°n contained in the Board's letter of October 31, 1945 th-881), the program as approved by the directors includes continuance of supplemental compensation as such effective as of the close of business December 31, 1945, ea.t the merger of supplemental compensation with the basic ar4 arY together with increases in the maximum annual sal— Wider the personnel classification plan to provide s7athe merger of supplemental compensation with basic rir, effective January 1, 1946. Of t The Board of Governors also approves the payment to Ahe following salaries for the period January 1, 1946, are Pril 30, 1946, inclusive, at the rates shown, which the rates fixed by the Board of Directors for the pur— irit ,of converting supplemental compensation now received o salary: Pr aPg4 1.9. Annual Salary Title 1,24k C. $5,800 Assistant Cashier 'qward R.Gilbody — Murphy 5,800" Assistant Cashier Approved unanimously. Letter °D Phil to Mr. Hill, Vice President of the Federal Reserve Bank adelPhia, reading as follows: 1820 11/16/45 —13— “In accordance with the request contained in your letter of November 8, 1945, the Board approves the ap— Pointment of Harry Holmes Smith, Jr., as an examiner for the Federal Reserve Bank of Philadelphia. Please advise , 1, 3 of the date upon which the appointment becomes effec— uive.” Approved unanimously. Letter to Mr. Williams, President of the Federal Reserve Bank ofTol,„ 'LLI--1-adelphia, reading as follows: "This is in reply to your letter of November 10, 1945, advising of the program of postwar salary adjust— ments approved by the Board of Directors at its meeting of November 1. "The Board of Governors authorizes your Bank to ex— ceed adjusted maximum annual salaries under the personnel ' ' a s assification plan of your Bank in individual cases by s:lnluch as 15% of the first $3,000 of the maximum annual ;-4-arY, provided that the total annual salary, including ' tlY such excess over the maximum annual salary under the Personnel classification plan, shall not exceed $7,500. ,"In accordance with the discussions at the recent ' 41. meeting of the Board with the Conference of Presi— de,:r t2lus this authoriza tion is granted as a temporary measure Pent u d'ke care of individual cases in the postwar situation cat.lng a comprehensive revision of the personnel classifi1°n plan. ti "It is noted from your letter that under the authoriza— (4 contained in the Board's letter of October 31, 1945 he program as approved by the directors includes the the 81), di of supplemental compensation as such ef— the close of business December 31, 1945, and supplemental compensation with the basic sal— fwith increases gihl ; ti i . 1deive°; al in the maximum annual salaries mer, r the personnel classification plan to provide for the °f supplemental compensation with basic salary effec— ye a lnury 1, 1946. skia,:-Lt is also noted from your letter that no officer's Boary is affected as a result of the action taken by the of Directors and that the list of positions affected the Personnel classification plan is being prepared 18,:21 11/16/45 -14- "and will be forwarded to the Board within a short time." Approved unanimously. Letter to Mr. Hays, First Vice President of the Federal Reserve 1/Wt of Cleveland, reading as follows: "The members of the Board appreciate your gracious letter of November 9 advising of your resignation as First Vice President of the Federal Reserve Bank of Cleveland the end of this month to accept the position of Executive Vice President of the First National Bank of Cincinnati. "In the eleven years which you have been with the Federald Reserve Bank of Cleveland in positions of progresve importance from that at of Executive Secretary to the VV-dustrial Advisory Committee to that of First Vice Presiyou have made a real contribution to the work of -at institution. With that record the Board can well rderstand your pride in your association with the FedReserve System. The Board is pleased to have your 1,ssurances that in your new work you will continue to r a staunch champion of the interests of the Federal Reserve System. f . "The Board regrets that you are leaving the official ynlY of the Federal Reserve System, but is glad that reiT reason for doing so is to accept an offer which you re; that, in fairness to yourself and family, you cannot wo ,se- The Board wishes you every success in your new have and trusts that the ability and earnest efforts which alv se carried you far in the Federal Reserve System will carrY you far in ,your new field." r Approved unanimously. Letter to Mr. Gidney, President of the Federal Reserve Bank of 01.eve -'-and/ reading as follows: • advisi --s ls in reply to your letter of November 61 1945, side;lg of the program of postwar salary adjustments conbY the Board of Directors at its meeting of November 1822 4/16/45 -15- "The Board of Governors authorizes your Bank to exceed adjusted maximum annual salaries under the personnel classification plan of your Bank in individual cases by as much as 15% of the first 0,000 of the maximum annual salary, provided that the total annual salary, including any such excess over the maximum annual salary under the personnel classification plan, shnll not exceed $7,500. "In accordance with the discussions at the recent joint meeting of the Board with the Conference of Presidents this authorization is granted as a temporary measure to take care of individual cases in the postwar situation Pending a comprehensive revision of the personnel classification Plan. "It is noted from your letter that the Board of Dire ctors, at its meeting of November 1, 1945, also considered the on desirability il of discontinuing payment of supplemental ! e mPensation and increasing the maximum annual salary for : e a.ch position under the personnel classification plan in an ont equal to the supplemental compensation now author'zed in order to permit the merging of the supplemental s compensation into basic salaries. It is also noted that, Ince the Board's letter dated October 31, 1945, (S-881), 2ontaining this authority was not received until November t. lle Board's letter vrfll be called to your Board's ati%nt ti 1°n at its next meeting in order that appropriate acon may be taken." Approved unanimously. Letter to Mr. Leach, President of the Federal Reserve Bank of Ricilmond reading as follows: advi 7his is in reply to your letter of November 8, 1945, n --8 ye'ne of the program of postwar salary adjustments ap'° 8d by the Board of Directors at its meeting on Novena,er tl „. "The Board of Governors authorizes your Bank to exceed a' cepsted maximum annual salaries under the personnel classifi1.5%1°n plan of your Bank in individual cases by as much as vid or the first 3,000 of the maximum annual salary, procesed that the total annual salary, including any such exTier the maximum annual salary under the personnel sslfication plan, shall not exceed 7,500. 1 1-1/16/45 -16- "In accordance with the discussions at the recent Joint meeting of the Board with the Conference of Presidents this authorization is granted as a temporary measure to take care of individual cases in the postwar situation Pending a comprehensive revision of the personnel classification plan. . "It is noted from your letter that under the authoriation contained in the Board's letter of October 31, 1945 1,,s_-881), the program as approved by the directors includes -.41,e discontinuance of supplemental compensation as such efective as of the close of business December 31, 1945, and tahe merger of supplemental compensation with the basic saltogether with increases in the maximum annual salaries der the personnel classification plan to provide for the f rj ," of supplemental compensation with basic salary efecuive January 1, 1946. The Board of Governors also approves the payment of f0)-lowing salaries for the period January 1, 1946, to ra 31, 1946, inclusive, at the rates shown which are the __ nes fixed by your Board of Directors for the purpose of "yerting supplemental compensation now received into aslo salary: Annual Salary RICHMOND J. M. Nowlan $5,580 Assistant Cashier BALTIMORE A. C. rienert 4,980 Assistant Cashier CHARLOTTE R. L. Honeycutt 5,180" Assistant Cashier 'Y r 117 Approved unanimously. Letter to Mr. Young, President of the Federal Reserve Bank of a reading as follows: pa, 1 "Mr. Diercks' letter of November 1, 1945, to Mr. rE,i4'ger, Director of the Board's Division of Examinations, Board a question as to whether it is necessary for the t° approve the reappointment of an examiner for the ita al Reserve Bank of Chicago upon his return from milthe''/.service. The answer to this question depends upon on j iroumstances of his leaving and how he was carried ue records of the Bank during his absence. 11/16/45 —17— "If an examiner resigned prior to entering the mili— tary service and is subsequently reemployed, then techni— cally his reappointment as an examiner by the Reserve Bank would require the Board's approval. If, however, the ex— aminer did not resign but was carried on military leave ! slid is merely reinstated to active duty after his return from military service there would be no break in his ap— , pointment and no action by the Board is required. "In such latter case, it would not be necessary to resubmit the matter to the Board for consideration but it !"8 requested that the Board's Division of Examinations be nformed as to the date the examiner returned to active uty Information should be submitted also as to the "J-arY rate and indebtedness. "It is understood from Mr. Diercks' telegram of No— vember 7 that Matthew F. Lynch and John A. Shinn were both Itrarded as having been absent on military leave and, in tie circumstances, the Board's approval of their resump— , . 0/2 of duties as examine rs for the Federal Reserve Bank '14 Chicago is not required." A Approved unanimously, together with a letter to the Presidents of all the other Federal Reserve Banks transmitting a copy of the above letter. Or Telegrd,m _ to Mr. Gilbert, President of the Federal Reserve Bank Delia s, reading as follows: t_ "Relet November 9. Board approves payment of salary th v A rbi. ert C. Michaelis as Assistant Cashier your Bank at to ' a e of $5,000 per annum, for period November 16, 1945, "IaY 31, 1946, inclusive." Approved unanimously. rettaing Letter to "The Citizens National Bank," Blossburg, Pennsylvania, as follows: . Anls refers to the resolution adopted on July 3, 1945 b the I'D Y the board of directors of your bank, signifying c_aryank t e desire to surrender its right to exercise fidu P°Ivers heretofore granted to it. 114.6/45 —18— "The Board, understanding that your bank has been discharged or otherwise properly relieved in accordance with the law of all of its duties as fiduciary, has issued a formal certificate to your bank certifying that it is n° longer authorized to exercise any of the fiduciary Powers covered by the provisions of section 11(k) of the Federal Reserve Act, as amended. This certificate is en— closed herewith. "In this connection, your attention is called to ! Ile fact that, under the provisions of section 11(k) of the Federal Reserve Act, as amended, when such a certifi— ate has been issued by the Board of Governors of the s deral Reserve System to a national bank, such bank (1) ! 4, 11 no longer be subject to the provisions of section 4tVk) of the Federal Reserve Act or the regulations of "e Board of Governors of the Federal Reserve System made Pursuant thereto, (2) shall be entitled to have returned t° it any securities which it may have deposited with he State or similar authorities for the protection of ij i.lvate or court trusts, and (3) shall not exercise any the powers conferred by section 11(k) of the Federal Re Goserve Act except with the permission of the Board of vernors of the Federal Reserve System." Approved unanimously. Letter to Mr. Mangels, Vice President of the Federal Reserve f San F rancisco, reading as follows: 19). "Reference is made to your letter of November 5, regarding the proposed change in the location of pr :Burlingame Office of the American Trust Company, San linneis°03 California, from 1100 Burlingame Avenue, Bur— Roa arile, California, to the westerly side of Primrose of '4, between Burlingame and Howard Avenues, a distance aPpr oximately three blocks. is understood that the Superintendent of Banks cha'alifornia has indicated his approval of the proposed arenP2 that the present quarters of the Burlingame Office chaninadequate and that, in your opinion, the proposed othePbwill involve no new elements of competition with cha anks, and no change is contemplated in the general l'acter 0f the business conducted by the branch which 1826 11/16/45 —19— "will continue to serve substantially the same customers but to better advantage . In the circumstances, the Board will not consider proposed removal as constituting the the es tablishment of a branch within the meaning of Section 9 of the Federal Reserve Act." Approved unanimously. Telegram to Mr. Rouse, Vice President of the Federal Reserve Bank of New York, reading as follows: "In accordance with action of your board of directors and ,,,ove ( , 4r:equest in your telegram November 15 the Board of approves your making loans to the Banco de la t_tepublica Oriental del Uruguay 'for current same terms and conditions as approved in Board's requimnts'° tele— rm August 4, 1945, with understanding that total loans stated your wire August 2, 1945, your letter itiegr79, 1945: and your wire November 15, 1945 will t exceed A18,000 000 in the aggregate at any one time outs tanding." Approved unanimously. Thereupon the meeting adjourned. 413Pro
@FedFRASER