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1426 A meeting of the Board of Governors of the Federal Reserve 8Yetem was held in Washington on Friday, November 17, 1939, at 11:50 a.m. PRESENT: Mr. Szymczak Mr. Davis Mr. Draper Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinafter referred to was taken by the Board: Telegrams to Messrs. Kimball, Post, McCravey, Dillard and Rale, Secretaries of the Federal Reserve Banks of New York, Philadelphia, 'Atlanta, Chicago and San Francisco, respectively, stating that the Board. IIPPrc)vee the establishment without change by the Federal Reserve Bank or Ban Francisco on November 14, by the Federal Reserve Banks of New 1°?k, Atlanta, Chicago and San Francisco on November 16, 1939, and by the rederal Reserve Bank of Philadelphia today, of the rates of dis- c°11/It and Purchase in their existing schedules. Approved unanimously. Memorandum dated November 13, 193c, from Mr. Goldenweiser, birector of the Division of RPsearch and Statistics, recommending tleit Miss Cecil Melanson be appointed on a permanent basis as a drafts'Ia4 it the Division, with no change in her present salary at the rate or $1,440 per annum, effective at the expiration of her temporary LIPPointment on November 20, 1939. Approved unanimously. ,frf .11_ 11/17/39 -2- Memoranda dated November 10, 1939, from Mr. Goldenweiser, Director of the Division of Research and Statistics, recommending that, for the reasons stated in the memoranda, Miss Mary Wilellyn Morelle and Miss Mary II. Bohlin be appointed on a temporary basis each for a period of three months as a clerk in the Division, with salary at the rate of .1120 per month, effective as of the date upon which they enter upon the performance of their duties. The memo- IlaridEt stated that in view of the fact that the two employees will Probably be recommended for permanent appointment at the expiration r their temporary appointments, it was suggested that they now be Permitted to become members of the Retirement System of the Federal R eserve Banks. Approved unanimously. Memorandum Or dated November 15, 1939, from.Mr. Paulger, Chief the Division of Examinations, recommending that, for the reason tated in the memorandum, S. J. Connell, Nhose resignation as a sderal Reserve Examiner was accepted by the Board effective November 15 ' 1939, be granted additional annual leave with pay for a period Of o4 '4X days and fifteen minutes to cover excess annual leave taken tlY Mr. Connell. Approved unanimously. Letter to the board of directors of the "iarmers Bank & Trt1St Co,n, Bardstown, Kentucky, stating that, subject to conditions 1428 11/17/39 -3- of membership numbered 1 to 6 contained in the Board's Regulation H and the following special conditions, the Board approves the bank's application for membership in the Federal Reserve System and for the appropriate amount of stock in the Federal Reserve Bank of St. LOuis: tt7. 118. Such bank shall make adequate provision for depreciation in its banking house and furniture and fixtures. Prior to admission to membership, such bank, if it has not already done so, shall charge off or otherwise eliminate estimated losses of '31688.75, as shown in the report of examination of such bank as of September 18, 1939, made by an examiner for the Federal Reserve Bank of St. Louis." Approved unanimously, together with a letter to Mr. Martin, President of the Federal Reserve Bank of St. Louis, reading as follows: "The Board of Governors of the Federal Reserve Syste ,m aPProves the annlication of the 'Farmers Bank & Trust Bardstown, Kentucky, for membership in the Federal lieserve System, subject to the conditions prescribed in the enclosed letter which you are requested to forward to the Board of Directors of the institution. Two conies of T.Ich letter are also enclosed, one of which is for your 12.1es and the other of which you are requested to forward the Director of Banks for the Commonwealth of Kentucky ror his informatio n. . "It has been noted that there has been no formal aPPointment of a trust officer or designation of a trust a c°mmittee, and that the bank has not been complying with 4 Provision of State law which requires segregating a cerin amount of assets to be held primarily liable for Ilduciary obligations. However, in the memorandum accomganYing the application it is said that the State require8 will be complied with and that your office will see 1_429 11/17/39 -4- "that the operations of the department are brought into conformity with recognized principles of sound fiduciary practices. The application has been approved with that understanding." Letter to Mr. McCabe, Chairman of the Federal Reserve Bank of Phi ladelphia., reading as follows: "Following up your letter of November 10 and my reply of November 13, I enclose a draft of a memorandum containing a brief discussion of various comments and suggestions set forth in the minutes of the last meeting of the Chairmen of the Federal Reserve Banks. "We would appreciate greatly your comments upon the enclosed memorandum and your opinion as to the desirability of sending it to the other Chairmen in advance of the next meeting." Approved unanimously. Letter to Mr. Sinclair, President of the Federal Reserve Bank °I Ph iladelphia, reading as follows: "Acknowledgment is made of your letter of November 9) 1939, concerning the proposed beautification of the surface of the vacant lot lying between your building and the new Federal Building, possible erection of an undergarage on the lot, and the alteration or rebuilding of the small service building on the rear of the lot. It is noted that you are also contemplating the replacement of the old furniture in the main banking room, which was not replaced on completion of the new building in 1934-35. "In view of the circumstances outlined in your letter, the Board will interpose no objection to the emPloYment of Dr. Cret, as architect, to make the prelimflarY studies and plans in connection with the improvements nd alterations. It is understood that after completion of the preliminary study you will review with the Board your Proposals before any final decision is made." Approved unanimously. 1430 11/17/39 -5- Letter to Mr. Hamilton, President of the Federal Reserve Bank of Kansas City, reading as follows: "Acknowledgment is made of your letter of November 10, 1239, with respect to the proposed air conditioning of the Omaha, Denver, and Oklahoma City Branches and soundproofing the Denver Branch. "In viev, of the circumstances outlined in your letter, the Board will interpose no objection to the expenditure of apnroximately $75,000 for air conditioning at the Omaha, Denver, and Oklahoma City branches and for sound-proofing part of the Denver Branch building. It Will be appreciated if you will advise us when the contracts are let." Approved unanimously. Memorandum dated November 15, 1939, from Mr. Wingfield, Assistexit ber General Counsel, recommending that there be published in the DecemJ-ssue of the Federal Reserve Bulletin statements in the form 4ttached to the memorandum with respect to the following subjects: Financial Transactions under Neutrality Act of 1939 Amendments to Regulation F, Trust Powers of National Banks Amendments to Regulation H, Membership of State Banking Institutions in the Federal Reserve System Approved unanimously. Thereupon the meeting adjourned.
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