Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, November 4, 1940, Volume 27, Part 4

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1437

A meeting of the Board of Governors of the Federal Reserve
System was held in Washington on Monday, November 4, 1940, at 11:30
a.m.
PRESENT:

Mr.
Mr.
Mr.
Mr.
Mr.

Eccles, Chairman
Ransom, Vice Chairman
Szymczak
Davis
Draper

Mr. Morrill, Secretary
Mr. Carpenter, 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:
The minutes of the meeting of the Board of Governors of the
Federal Reserve System held on November 2, 1940, were approved unanimously.
Letter to the board of directors of the "Bank of Alberta,
Incorporated", Alberta, Virginia, stating that, subject to conditions of membership numbered 1 to 3 contained in the Board's Regulation H, 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 Richmond.
The letter also contained the following special comment:
"It appears that the bank possesses certain powers
which are not being exercised and which are not necessarily
required in the conduct of a banking business, such as the
power to guarantee the payment of bonds. Attention is invited to the fact that if the bank desires to exercise
any powers not actually exercised at the time of admission




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11/4/40

"to membership, it will be necessary under condition of
membership numbered 1 to obtain the permission of the
Board of Governors before exercising them. In this connection the Board understands that there has been no
change in the scope of the corporate powers exercised
by the bank since the date of its application for membership."
Approved unanimously for transmission through the Federal Reserve Bank of
Richmond.
Letter to Mr. Fleming, President of the Federal Reserve Bank
of Cleveland, reading as follows:
"The Board of Governors has considered the recommendations of the Executive Committee of your Bank, contained in your letters of October 24, 1940, and, pursuant
to the provisions of Section 19 of the Federal Reserve
Act, grants permission to the "St. Clair Deposit Bank of
Pittsburgh" and the "Bank of Ohio Valley", both of Pittsburgh, Pennsylvania, to carry the same reserves against
net demand deposits and time deposits as are required to
be carried by banks located outside of central reserve
and reserve cities, such permission to be effective if
and when the banks are admitted to membership in the Federal Reserve System.
"Please advise the respective member banks of the
Board's action in this matter, calling their attention
to the fact that such permission is subject to revocation
at any time by the Board of Governors of the Federal Reserve System."
Approved unanimously.
Letter to Mr. Ralph L. Hebbard, Acting Water Registrar, District
Of Columbia, reading as follows:
"This will acknowledge the printed notice addressed
to the Federal Reserve Board by your office under date
of October 31, 1940, calling attention to the fact that
the water rent upon the building occupied by the Board
of Governors of the Federal Reserve System at Constitution
Avenue and 20th Street has not been paid.




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"In a letter addressed to the Board under date of
August 4, 1940, you stated that you had been instructed
to render bills to the Board for the use of water but to
take no further action toward the collection thereof until
the determination of the question as to the taxability
of the Federal Reserve building.
"Pursuant to a suggestion contained in a letter addressed to the Board's Counsel by the Secretary to the
Board of Commissioners of the District of Columbia under
date of September 27, 1940, the Board is giving consideration to the question what procedure may be adopted to
obtain a final determination of this question and it is
assumed that you will take no further action toward the
collection of the bills for the use of water until the
taxation question has been finally determined."




Approved unanimously

Thereupon the meeting adjourned.

W

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Chairman.

Jr

-

Secretary.