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1854 A meeting of the Board of Governors of the Federal Reserve stem was held in Washington on Wednesday, November 21, 1945, at 11100 a.m. PRESENT: Mr. Mr. Mr. Mr. Eccles, Chairman McKee Draper Evans Mr. Carpenter, Secretary Mr. Connell, General Assistant, Office of the Secretary Mr. Morrill, Special Adviser 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 Pederal Reser„ System held on November 20, 1945, were approved unani— 41°1184. Memorandum dated November 15, 1945, from Mr. Carpenter rec— (Iltlending that Raymond J. Collier, who has been on military leave, be 4esars, y P4.0 ed in the Secretary's Office as a general assistant, with b48ie 8alar7 at the rate of $4,300 per annum, effective as of the (141.,e bp, -eon which he enters upon the performance of his duties after Passed the usual physical examination. Approved unanimously. Letter to Mr. Rounds, Chairman of the Retirement Committee, Fed eral neserve Bank of New York, reading as follows: "In your letter of October 19, 1945, you ask to be 1855 11/21145 —2— "advised of the Board's wishes regarding a request from a Participant in the Board Plan that his retirement allow— ance be on a joint and survivorship basis in proportions Other than those available under the Civil Service Retire— Meat Act. "You advised that you have no doubt that the Retire— ment Committee would grant the request if the working rules Yere amended to make such a settlement possible and add that there is no practical objection from the point of view of the Retirement System to granting the request, since the amount of the allowance would be calculated by the Ac— and_ would have the same actuarial value as the basic csalowance. As a possible alternative to amending the work-rlg rules, You suggest that the Board might express a will— rIgness for the Retirement Committee, in its discretion, grant such requests. m "The Board will interpose no objection to the Retire— ,:nt.Committee, in its discretion, granting requests from l';Vacipants of the Board Plan for joint and survivorship allowances t in proportions other than those available under 4 11e Civil Service Retirement Act, provided, of course, that --n.each case any such a]lowance would have the same actu— rlal value as the basic allowance." t Approved unanimously. Of Letter to Mr. Gilbert, President of the Federal Reserve Bank as, reading as follows: This is in reply to your letter of November 14, 1945, adv.;! pr;;elng of the program of postwar salary adjustments ap— e, ed bY the Board of Directors at its meeting of November cee "The Board of Governors authorizes your Bank to ex— c1;1 (djustedmaxiimmn annual salaries under the personnel as'881fication plan of your Bank in individual cases by anrinilleh as 15% of the first $3,000 of the adjusted maximum cluldT: salary, provided that the total annual salary, in— sej_a7g any such excess over the adjusted maximum annual ez rY under the personnel classification plan, shall not 7,500. j04_ I-Ln accordance with the discussions at the recent cle;LIZt ;T!.7ting of the Board with the Conference of Presi— ''LLis authorization is granted as a temporary measure 1856 11/21/45 -3- “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 author! .zaticn contained in the Board's letter of October 31, 1945 (S881), the program as approved by the directors includes the discontinuance of supplemental compensation as Such effective as of the close of business December 31, 45, and the merger of supplemental compensation with basic salary together with increases in the maximum nual salaries under the personnel classification plan 60 Provide for the merger of supplemental compensation with basic salary effective January 1, 1946. It is also noted from your letter that prior to tramin—, 1946, a list of the officers' salaries affected will result of the action taken by the Board of Directors eald submitted to the Board of Governors for approval l'hat that a list of the positions affected under the per8°11nel classification plan also will be forwarded to the Board.” g Approved unanimously. Letter to the "Bank of Gueydan," Gueydan, Louisiana, reading 4a talows. all "The Board is glad to learn that you have completed al shi Tangements for the admission of your bank to memberthei Federal Reserve System and takes pleasure in shipenlltting herewith a formal certificate of your member"It will be appreciated if you will acknowledge receipt of this certificate." Approved unanimously. Letter to the board of directors of the "First Trust and Say' an's, Tennessee, stating that, subject to conditions of hiP numbered 1 to 3 contained in the Board's Regulation H, the tot "a 12131**°ves the bank's application for membership in the Federal 1857 1421/45 -4- Reser Iry System and for the appropriate amount of stock in the Fed— eralReserve Bank of St. Louis. tig special comment: The letter also contained the follow— "It has been noted that the bank is authorized to exercise fiduciary powers and formerly exercised such Powers but is not doing so at present and does not con— temPlate again accepting trust business. It has been ! 11 .ed also that the bank possesses certain other powers 1:"'L?!1 are not being exercised and which are not neces— ' arIlY required in the conduct of a banking business, !uch as the powers to guarantee the payment of bonds °4Id mortgages and to guarantee titles to real estate. is called to the fact that if the bank should decide ecide in the future to exercise fiduciary powers or to exercise any other powers not actually exercised at 8 e time of admission to membership, it will be neces— rY under condition of membership numbered 1 to obtain e permission of the Board of Governors before doing th ' In this connection, the Board understands that here has been no change in the scope of corporate ITTers exercised by the bank since the date of its ap— v leation for membership." j Approved unanimously, together with a letter to Mr. Davis, President of the Federal Reserve Bank of St. Louis, read— ing as follows: "The Board of Governors of the Federal Reserve Sys— tent a Pproves the application of the 'First Trust and Sav— Re!: 1344k,' Paris, Tennessee, for membership in the Federal th:-1-"re System, subject to the conditions prescribed in ' th enclosed letter which you are requested to forward to sue ej loard of Directors of the institution. Two copies of 4111 letter are also enclosed, one of which is for your and the other of which you are requested to forward to fcr-1-f of Banks for the State of Tennessee U.S information. stre The directors appear to recognize the need for c ngthening the management by the addition of an offi— el' who will • be capable of succeeding to the leadership 1858 4/21/45 —5— Hof the bank upon the retirement of the president within the next few years and it is said that efforts are being !Dade to obtain the services of such a person. It has been noted that you intend to follow the case closely until the situation has been corrected and it will be appreciated if you will keep the Board advised as to deve lopments." Letter to the board of directors of the "First State Bank of Steve nsville Montana," Stevensville, Montana, stating that, subject to mris of membership numbered 1 to 3 contained in the Board's Regulation " and the following special condition, the Board approves the banjo_ 4PPlication for membership in the Federal Reserve System and tor the appropriate amount of stock in the Federal Reserve Bank of fleap015, 4. Such bank shall increase the number of its directors to not less than five, the minimum number required in the case of all member banks under the provisions of section 31 of the Banking Act of 1933, as amended." Approved unanimously, together with a letter to Mr. Peyton, President of the Federal Reserve Bank of Minneapolis, reading as follows: 1'0"The Board of Governors of the Federal Reserve System 413P ves the application of the 'First State Bank of Stevensped e Montana,t Stevensville, Montana, for membership in the !Fal Reserve System, subject to the conditions prescribed enclosed letter which you are requested to forward to etich letotard of Directors of the institution. Two copies of and er are also enclosed, one of which is for your files Other of which you are requested to forward to the irlii'urIntendent of Banks for the State of Montana, for his ormation. it h:In connection with condition of membership numbered 4, noted that the bank has agreed to increase the ' 8 been 1859 4/21/45 —6— ,number of its directors to five at its next annual stock— nolders' meeting. With the understanding that the matter !rill be attended to at that time, the Board will not object to the admission of the bank to membership with only four d irectors. bankl"It is assumed that you will follow the matter of the s bringing into conformity with the provisions of law a_nd the Board's regulations the savings account mentioned un Page 16 of the report of examination for membership." Telegram to Mr. Day, President of the Federal Reserve Bank clt San Francisco, stating that, subject to conditions of membership 1111Mbered 1 to 6 contained in the Board's Regulation H, the Board ap— P/‘°.ves the application of the "Security Trust & Savings Bank of San 131e° ' " San Diego, California, for membership in the Federal Reserve P.`ltem and for the appropriate amount of stock in the Federal Reserve 114111t of "a Francisco. The telegram requested that the Federal Reserve 1141kadvise the applicant bank of the Board's approval of the applica— tiola and c onditions of membership prescribed, together with necessary t1143tIlleti°ns as to the procedure for accomplishing membership, and ate.tect that a letter containing detailed advice regarding such approval 17'4141 be f orwarded to the applicant bank through the Reserve Bank. telegram contained the following additional statements: ;Since it is reported that the losses estimated oha,"e report of examination for membership have been 'nd off, the usual condition of membership requir '14.e elimination of losses has not been prescribed. the,A letter approving the retention and operation of Cal4ranohes at Chula Vista, California, and Escondido, to rrnia, is being transmitted which you are requested bank°rward to the Board of Directors of the applicant • CoPY of letter is also being sent for your files. 1860 11/21/45 —7— "Board also approves the proposed establishment and o peration of a branch in Oceanside, California, by the Security Trust & Savings Bank of San Diego, San Diego, b California, with the understanding that counsel for the trserve Bank will review and satisfy himself as to the -Legality of RY1 steps taken to establish the branch. . "If applicant bank has not been informed of the re— under condition of membership numbered 6 that securities pledged with commercial or savings department , 4118t equal the amount of trust funds deposited in such uepa .rtments, regardless of deposit insurance, please so c171.-ee the bank when notifying it that membership appli— ! ' atlon has been approved." Approved unanimously. Memorandum dated November 19, 1945, from Mr. Smead, Director c't the n4 --vision of Bank Operations, recommending that $90 be added t0 the 1945 budget for that Division to cover estimated expenses un— " (1 the Item "Stationery and Supplies." Approved unanimously. Thereupon the meeting adjourned. Chairman.
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