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1869 A meeting of the Board of Governors of the Federal Reserve Systera , as held in Washington on Monday, November 26, 1945, at 10:30 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- atter referred to was taken by the Board: Nderaa The minutes of the meeting of the Board of Governors of the Reserve System held on November 23, 1945, were approved unani- 410141y. T elegram to Mr. Powell, First Vice President of the Federal ilerlre Dank of Minneapolis, stating that the Board approves the 1:8.blishrtient, without change by the Federal Reserve Bank of Minneapolis (111 1°'vetaber 23, , 1945 of the rates of discount and purchase in its ex1%le s chedule. Approved unanimously. 14emorandum dated November 15, 1945, from Mr. Bethea, Director : the 47ision of Administrative Services, recommending that the salA. Nelson, Assistant Director of that Division, be increased ' t'' 1111 48,225 to 48,750 per annum, effective as of December 2, 1945. Approved unanimously. _1870 11/26/45 -2Memorandum dated November 21, 1945, from Mr. Carpenter recom, encling that the temporary appointment of Mrs. Hazel Pye, a file clerk the secretary? s Office, which expires on November 27, 1945, be made 1)eI*41allent and that her salary be increased from $.2,C4D to $2,166 per anniza, e ffective as of December 2, 1945. Approved unanimously. Letter to Mr. licLarin, President of the Federal Reserve Bank Of Atlanta, reading as follows: mii„ "This refers to your letter of October 23, 1945, transT L6ing a copy of a letter agreement written to Mr. Henry J. °°1abs outlining the terms of his employment as consulting a!:chitect. It is noted that Mr. Toombs is to furnish comPaete architectural services for new buildings and for ifterations on existing buildings and is at present prepar07 Plans for alteration of and the addition to the New 8 ,ean3 Branch. It is noted also that the total fees for oi ar c'ch chitectural work are payable (1) 20 per cent on the eomPletion of preliminary studies, (2) 55 per cent upon the anrletion of specifications and general working drawings, (3 ) the remaining 25 per cent from time to time during the actual construction work. the ,"As you will recall, at the meeting of the Board with ' residents on October 18, 1945, it was stated as the 4 1 7 of the Board that the Federal Reserve Banks should not andertake to engage architects or to prepare detailed plans exi sPecifications for new, or additions or alterations to 5,..tsting, Federal Reserve Bank or branch buildings until the the tion was clarified with respect to reorganization of the Federal bank supervisory agencies. However, in view of arr %-+ tarik 4 _gement --u with the architect which was made by your September, the Board will interpose no objection to mPletion of preliminary plans for the alteration and 8tarlI on to your New Orleans Branch building, with the underthat before you proceed with the preparation of led secifications and general working drawings you Of n Lake the matter up with the Board again. Preparation taiiisTinlinary plans in connection with any of your other Wit1,-'nge should not be undertaken without first consulting " the Board." Approved unanimously. 1871 /26/45 Letter to Mr. Ernest S. Griffith, Director of Legislative Reference service, The Library of Congress, reading as follows: "This refers to your letter of November 1, 1945, addressed to Mr. Walter Wyatt, regarding the proposed estabAshment of a State legislative service. "We have no doubt that the service described in your letter would be of value to many of the agencies of the ;flArernment. As far as the Board of Governors is concerned, !1?wever, the proposed service would probably be of only 1?mited usefulness. It is the practice of the twelve re61,2hal Federal Reserve Banks to keep the Board advised of important current developments in the fields with which ,e Board is principally concerned, and, for ordinary puroes, the permanent editions of the various State statutes , eh we have in our law library are sufficient to meet our 'Leeds. 41 an, "We appreciate your consulting us about this matter affording us this opportunity to advise of the extent ' 4 cur need in this connection." Approved unanimously. Letter to Mr. Weigel, Assistant Vice President of the Federal 4 erite of St. Louis, reading as follows: /)er "The 'Board of Governors approves the changes in the Of ;°nnel classification plan of the Federal Reserve Bank MitC. Louis, involving the Personnel Department, as subwithed your letter of November 16, 1945. aries"It is noted from your letter that maximum annual salt/1,1)101 established for the positiov of Interviewer and 0 Yee ,Counselor and Personnel Cler w 1 be increased in tiaxi;ciance with any action taken by your Bank increasing tull annual salaries under der the personnel classification P4 /1,by &zed the amount of supplemental compensation now authoraccordance with the authority contained in the s letter of October 31, 1945, S-881." Approved unanimously. a etter to nThe First State Bank," Fairfax, Oklahoma, reading 11 ,,ows: 1872 11/26/45 -4"The Board is glad to learn that you have completed all !F_rangements for the admission of your bank to membership in re Federal Reserve System and takes pleasure in transmitherewith a formal certificate of your membership. "It will be appreciated if you will acknowledge receipt vi this certificate." Approved unanimously. Letter to Mr. Young, President of the Federal Reserve Bank of Chicago, reading as follows: "This refers to Mr. Diercks1 letter of November 6, 1945, regard to the application of Peoples Bank and Trust Corn31.2 Sunman, Indiana, for permission to exercise fiduciary nm —wers. piWith r_ "In view of the information submitted, and Mr. Diercks' 8:c°mmendation, the Board of Governors of the Federal Reserve stem 4 grants the applicant bank permission, under the proof its condition of membership numbered 1, to exerth:e,the fiduciary powers held by it under its charter and az -Laws of the State of Indiana. The Board's approval is : 8.i ell subject to acceptance by the bank of the following sirdard conditions prescribe d in connection with the admis, 11 to membership of State banks exercising fiduciary powers: Such bank shall not invest funds held by it as fiduciary in stock or obligations of, or property acquired from, the bank or its directors, officers, or employees, or their interests, or in stock or obligations of, or property acquired from, affiliates of the bank. 2• Such bank, except as permitted in the case of national banks exercising fiduciary powers, shall not invest collectively funds held by the bank as fiduciary and shall keep the securities and investments of each trust separate from those of all Other trusts and separate also from the properties of the bank itself. 3. If funds held by such bank as fiduciary are dePosited in its commercial or savings department or otherwise used in the conduct of its business, it ?hall deposit with its trust department security in the same manner and to the same extent as is required of national banks exercising fiduciary Powers. vl 1E373 11/26/ 45 —5— "Since it is understood that in the State of Indiana trUSt funds deposited in the banking department of a bank are preferred claims in event of liquidation of the bank, i You are authorized, in accordance with the general authorvrion previously granted by the Board, to waive compliance uh condition of membership numbered 3 herein until further notice. 'You are requested to advise the Peoples Bank and Trust n, Sunman Indiana, of the Board's action, and to obtain an appropriate resolution of the board of directors the bank accepting the conditions listed above and forward a certified copy thereof to the Board." Corn Approved unanimously. Uemorandum dated November 21, 1945, from Mr. Vest, General At- tome Y2 a. Rea stating that on October 5, 1945, the Board issued an Order for ' l ing under Regulation W in connection with Motor City Credit / 1 21.el 17 Co. in Detroit, Michigan, and directed the Hearing Officer ,11r. TOIlltse nd) to furnish the Board with a transcript of the hearing but did llot at tIm time authorize payment for the transcript. The memorandum ed that the Board authorize payment of the bill in the sum of 4193.6 5 and also authorize an addition of $100 to the 1945 budget of thete gal Division under the classification "Miscellaneous" which, together Illth the estimated unexpended balance for the year in that cation, should cover the bill. Approved unanimously. Thereupon the meeting adjourned. 413Proy Secretary. Chairman.
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