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1661 A meeting of the Board of Governors of the Federal Reserve SYstern_ wad held in Washington on Monday, November 6, 1944, at 10:30 PRESENT: Mr. Szymczak Mr. Draper Mr. Evans Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinafter referred to was taken by the Board: or trew Letter to Mr. Sproul, President of the Federal Reserve Bank y ork, reading as follows: "This refers to Mr. Gidney's letter of October 19, on with the Bank Commissioner of Connecticut negotiations for of reports of condition publication joint rendered by State member banks to the State banking department and to "It is observed from Mr. Gidney's letter and from an eXamination of the enclosures that the Bank Commissioner has -., 410.e substantial concessions toward the Federal Re' serve publication requirements, and that all differences re anY substance between the State form and the Board's ancalllirenlents appear to have been harmonized satisfactorily golf in manner consistent with the general instructions 10,ern1ng publication appearing on page 3 of Form F. R. red?-- The following points in particular were noted in vle:ing the proposed form of joint published statement: 1. Valuation reserves in savings department. As lfldcated in Mr. Gidney's letter, under the Board's genma,,.! instructions all valuation reserves--savings departaW and commercial department--are required to be netted howInst the pertinent asset figures. It is observed, iver, from the Bank Commissioner's letter of October 9j ce,anat anY such reserves set up in the savings department re °t be netted against the pertinent asset figures, in ports rendered to the State banking department, because 11/6/44 -2"that 'would throw the savings department out of balance.' Therefore, as pointed out in Mr. Gidney's letter, if the State form is used, it will be necessary for any Connecticut State member bank having such valuation reserves in its savings department to (1) interline the total amount as a separate item above 'Other liabilities' in the condition r_eport submitted to your Bank on Form F. R. 105, and (2) furnish a supplem entary memorandum showing how much of the valuation reserves are applicable to the various aset items in the condition report, so that appropriate adjustments the reports may be made in tabulating statistics from of condition. "2. Omission from the State form of the following la_lemorandum item appearing in the Board's form because, 'd stated in the State Bank Commissioner's letter of October 9, 'neithe r of these items are pertinent to Connecticut': 31(c) Assets pledged to qualify for exercise of fiduciary or corporate powers, and for purposes other than to secure liabilities. "The reports of conditi on for June 30, 1944 of three State member banks in Connecticut (one in the New York in the Boston district) show amounts against item 0,\c)- Reference to the examination reports, however, s that in two of the cases (including the one in your %strict) the condition reports are in error; the amounts rssent assets pledged against uninvested trust funds reP°eited in the banking department and should have been thip ec)rted against item 31(a) or 31(b). In the third case 44 _ condition 'n reports report apparently is correct, since examinaindicate that the amount reported represents ci:It. irities pledged with the local clearing house. In the pos'umstances, item 31(c) need not be included in the proednf , orm of joint publish ed statement. mem )- Omission from the State form of the following item appearing in the Board's form because, Z:biFitaL lin the State Bank Commissioner's letter of Oc9, neither of these items are pertinent to Contiecticutt: W X 32(d) Deposits preferred under provisions of law but not secured by pledge of assets. 11/6/44 -3- "Four banks in the Boston District and none in the New York District showed preferred deposits ranging from $907 to $50,893 against item 32(d) of the June 30, 1944 condition reports. Assuming that the Bank Commissioner's letter means that there is no provision in State law for preference of deposits, the amounts shown presumably represent unsecure d deposits preferred under provisions of Federal law (Section 3466 U.S.R.S.). In the circumstances 44d of Cin view of the statement made by the Bank Commissioner onnecticut, the Board will interpose no objection to tstt:1/lienZi.on of the item in the proposed joint published "4. Attestation of three directors. It is under”ood from a telephone conversation with Mr. Gidney that Is not anticipated that the Bank Commissioner will f8me any objection whatever to including, in the proposed of joint published statement, provision for the names t three directors of the State member bank who at,t .s.? to the correctness of the condition report on Form 105 submitted to your Bank, even though this is not .L'zillired by the State. II Under the above conditions, and in view of your 4Bank's , recommendation, the Board will interpose no objecon to the acceptance, until further notice, of the pubti0n of conditio n reports of Connecticut State member in accordance with the draft of the proposed form enclosed With Mr. Gidney's letter of October 19." or test il2 Approved unanimously. Letter to Mr. McCreedy Secretary of the Federal Reserve Bank , Of Philadelphia, reading as follows: "The Board of Governor approves the payment of sals Robert N. Hilkert, Assistant Vice President, geral Reserve Bank of Philadelphia, for the period :;;e;e],,...6;4311.1t through April 30, 1945, at the rate of which is the rate fixed by your Board 1;43,11.1?ctors as reported in your letter of November 2, Approved unanimously. Thereupon the meeting adjourned.
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