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1844 Minutes of actions taken by the Board of Governors of the Peas,erea Re Serve System on Wednesday, November 3, 1948. PRESENT: Mr. Szymczak, Chairman pro tem. Mr. Draper Mr. Clayton Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Tele gram to Mr. McConnell, Vice President of the Federal ReBatk of Minneapolis, reading as follows: tiolt "Retel November 1, 1948. Board approves designa°f^0 RalPh 3. Dreitzler as Special Assistant Exarai. or the Reserve Bank of Minneapolis, November 1, 1948." Approved unanimously. ot Telegram to Mr. Gilbert, President of the Federal Reserve Dallas, stating that, subject to conditions of membership , 414bered 1 and 2 contained in the Board's Regulation H and the fol- ill'e special co ndition, the Board approves the application of 'Ille 4r8t State Bank", Abilene, Texas, for membership in the NI Reserve 48t,em, and - the pea 6 -ertli for the appropriate amount of stock el141 Reserve Bank of Dallas: 1,,. On or before March 31, 1949, such bait shall tbroc:e th thee amount of its capital stock to $18 , shareg“ sale of $.30,000 par value of additional °f be '-uu tocommon stock for $50,000, the premium of b 6 added to surplus. Such increase shall °r alkthorized e, %tell h„, at the annual meeting of shareholders ---‘'I to be held in January 1949." t2onL Approved unanimously. 0 Letter to Mr. Wiltse, Vice President of the Federal Reserve of Neu York, reading as follows: "Reference is made to your letter of October 25, an748) the request of the Bank of New York olp Fifth Avenue Bank, New York, New York, for approval ell increased gregate amount investment in bank premises to an agnot to exceed i.,500,000. "It is understood that, through inadvertence, exp luctitures have already been made without prior apbmt."111)totaiiing about $383,300 in excess of the ti' : 04 8 capital stock of ,000,000 and that addi111%1; r emodeling is under way or contemplated. Gove„in view of your recommendation, the Board of prere aPproves the increased investment in bank ' 41 es to an aggregate amount not to exceed $8,500,000." Approved unanimously. Letter to Mr. McCreedy, Vice President of the Federal Reserve Of Philadelphia, reading as follows: trig : t This refers to your letter of October 26 regard"e Penalty of $65.30 incurred by the Interboro ott and deftTrust Company, Prospect Park, Pennsylvania, SePtemberelen .cY in its reserves for the period ending the rtl"I d i 5s note that the deficiency resulted from ' ,.ranse t fter..bankt s inadvertent failure to complete a u ha; °I funds from a correspondent bank, that the the ' not been penalized since 1933, and that durreseir„.8current year the daily average of its excess " has varied from $28,000 to $104,000. 4B-111 110 .1.1e circumstances, the Board authorizes your L.0 make the assessment." Approved unanimously. Lett . ' r to the Honorable Maple T. Han, Chairman, Federal De'°ett Tlastirttri es Cor poration, reading as follows: letter '40"e°r (lance with the request contained in your !he ?ed° ..: . October 25, 1948, the Board of Governors of ' 4ettt, Reserve System hereby grants written con4-"tiant to the provisions of sub-section (k)(2) 184 114448 —3— 11,1 6ecti0n 12B of the Federal Reserve Act, for examiners for the Federal Deposit Insurance Corporation to make an '0:01-nIctlitation of the Tipton State Bank, Tipton, Iowa, in ..„!naotion with its application for continuance of insur-"'e after withdrawal from membership in the Federal Re" -e SYstem. have been no corrective ptograms urged upon bank or °ank agreed to, WC hi h have not been fully con"ttniraated and in connection with which the Board would NgeStain suitala corporation of conditions for continuing its S an insured bank." Approved unanimously. Letter to Mr. McConnell, Vice President of the Federal ReBank of Minneapolis, reading as follows: to u_"This refers to your letter of October 5, 1948, jecj. Millard, requesting advice as to whether any ob: c 11 l'rould be interposed to your continuing the Pra; r fd gtal°12 ending to First Bank Stock Corporation rp extra copies of reports mer4 IllinationBancooration of their respective subsidiary State ret,, er banks. We note that the extra copies of the %W' I s are furnished of to the holding companies inacdire"," With boards the adopted by resolutions the or of the individual banks; also that it is Practi p 'sue of both the District Chief National Bank t°r th-rmin Minneapolis and the Supervising Examiner Na' t rederal Deposit Insurance Corporation in S their 22end copies of reports of examination made by 1,Aaminers to the two holding companies. The ! i rat authorizes your Bank to furnish to 0.ot Stock Corporation and Northwest BancorporaIG°rt::: /lell as the individual banks, copies of reQtElte-e-mv,examination of their respective subsidiary l'esolurni ; ,~er banks in accordance with appropriate indiIldlaaith—ris of the transmitted the boards of directors of 614d re,-9-1.,11'82 provided such reports are 1?1111,-64-Pts therefor obtained in such manner as and 4:18erve s ubstantially the same restrictions Pr,lablta -iP°ns as to use, recall, and disclosure or as those which govern the copies of rePo p. '11rnish R. ed to State member banks pursuant to 410-45—Receipt. Serlre 1847 11/3/48 -4"Although the sample directors' resolution enclosed ine'tYour letter instructs the officers of the subsidiary bank to forward til"r copies of the reports of examina,001a to the holding companyaffiliate, we understand from hrletter that it is your practice to send copies of _reports direct to the holding company. It would be Pre rerable for the board of directors of the subsidiary zeraber bank by resolution to request the Federal Reserve ' lank t0 furnish in copies of the reports direct to the holdCOrapany . I Approved unanimously. Letter to the Presidents of all Federal Reserve Banks read- 8 fouove: rat. 'Th e have been forwarded to you today underse used pa- cover State copies of form F. R. 107 to be by --gitgs member anks in submitting their reports of earntalmi,nd dividend s for the calendar year 1948. The 1948 4-s the he same as the one used for the first half of /114t4iathethe following changes, which are not of a 1 haracter: 1. I nsertion of Section D on the back of the form. 2. Transfer of the common stock dividend items (date declared, date payable, and amount), Previously reported under Supplementary Information on the back of the form, to the fr:ai?e of the form as indented items under 7k0), Cash dividends declared on common stock. 3. A ddition of explanatory designations following the captions of items 4(d) and 5(d). 4. Chang tn _ %the captions of items 28 and 34 of Section SO as to give the actual dates of ni the beginning and end of the report period. (1141.4 1, ,v1ew of some common reporting errors discovered toriths nr review of the reports for the first six ;j 94S2 it is suggested that you call attention -' Sect— J" . 1°ns of the instructions for items 30 and 33 ° that reauire all transfers to and from val4) reet:eserve accounts to be included in items 5 and ei°141ta';!tivelY• Thus, all transfers to reserve ac,lithe:-Ported in item 30 of Section D must be included -13Pl'oPriate sub-item of item 5, and all transfers 11/3/48 —5— "from reserve accounts reported in item 33 of Section D 'lust be included in the appropriate sub—item of item 4. "Transfers to reserves for bad debt losses on loans (s:111 p,1113 pursuant to Section 23(k)1 of Internal Revenue e) should be reported in the first column of Section t end included in item 5(b), 'Losses, charge—offs, and 07rere to reserve accounts -- on loans', on the face "ereport. Several banks included these amounts in Ben 5(e), 'Losses, charge—offs, and transfers to re— thive accounts -all other'. It is suggested that 8 also be brought to the attention of the banks." r Approved unanimously, with the understanding that the letter would be sent when the forms referred to therein are printed and ready for distribution. Telegrelm to Mr. Earhart, President of the Federal Reserve o 0 uan Francisco, reading as follows: has considered your letters eItOcilt841;124, 1948, and your November 2 wire and will atiZ1 31 (re no objection to acceptance for proposed Se— Steel "l'anch building of bid of $249,766 for structural () submitted by Bethlehem Pacific Coast Steel Corp— silix n and bid sto -.ted by H. of $78,000 for cellular steel floors H. Robrtson Company. It is under— et ecl that : , contract for structural steel could be ru shotle't vith reimbursement for expense of preparing ecUid vings and contract for cellular steel floors eerise"e prior to February 15, 1949, without T Approved unanimously. Letter to 11/.. the Agnew, Vice President and General Counsel of PE0 ‘‘erea °serve Bank of San Francisco, reading as follows: "Recei,+ 18 acknowledged of your letter of October 1948 fo'regarding the request of Mrs. James and Mrs. tItudy Photostatic copies of certain pages of the ! lla itled 'Branch Banking in California' prepared :1,114r Zi A. direction of a committee consisting of Mr. 4Q1den1feiser and others. 18-49 11/348 -6"The Board's policy with respect to making these . available, and the reasons for the Board's policy, atre,stated in the letter of April 13, 1939 from the Board x. Harrison to which you refer in your letter, and. IfelBoard sees no reason to make any change in its policy. responsible persons' are permitted to use the studies ;7,the libraries of the Federal Reserve Banks it is pos_'ple to call their attention to the status of the reas described in the letter to Mr. Harrison. However th:2 48 You suggest, if photostatic copies are furnished, 1.71;:e i3 a distinct risk that the status of the studies not be made clear when the photostatic copies are ect at some later date." Studies V Approved unanimously. Letter Prepared in accordance with the action taken at the 4itta !en October 19, 1948, to Mr. Howard F. Gildea, Director, Nody, teacitil brrestors Service, 65 Broadway, New York 6, New York, g as follows: tioara"*. Bethea has brought to the attention of the telit— 1°11-r letter of October 21 summarizing the arrange rat': encent4 agreed upon informally by the various 'Jest.; -genoies and the Board with respect to the pubof the eighteen months' average prices. tett "The e Board accepts participation in the arrange thEtt °11 the terms outlined in your letter and suggests proportionate shar , 13111- the Board quarterly for its is which heo rs et wit on h.voucher forms, a supply of seerf-:.0t,uhern 4greeabi ac"rdance with your suggestion, the Board is °tOct: to having the arrangement made effective a Y°11811=r 1, 1948 and also to the un understanding that riAtljre-1 receive sixty days' prior notice if at some this caZtle the n arrangement is to be discontinued. 1.°111d i:"e”ion, it is assumed that the same notice to the Board by you on behalf of any b -r°111,1* Participating publishers should any of *1%'en-4 513°esd to discontinue the arrangement in the e ' Y the g-Lven Approved unanimously.
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