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12044
A meeting of the Board of Governors of the Federal Reserve
SYstem
Was held in Viashington on Tuesday, September 16, 1941, at 3:30
PRESENT:
Mr. Ransom, Vice Chairman
Mr. Szymczak
Mr. Draper
Mr.
Mr.
Mr.
Mr.
Morrill, Secretary
Bethea, Assistant Secretary
Carpenter, Assistant Secretary
Clayton, Assistant to the Chairman
Il
emorandum dated September 15, 1941, from Mr. Thomas, Assist—
ant
ulrector of the
Division of Research and Statistics, recommending
that
3
3
Esther H. Larson be appointed on a temporary basis for a
Perl.od
not to exceed three months as a clerk in the Division of
liesearch and
Statistics, with salary at the rate of !4:,1,440 per annum,
effective as
of the date upon which she enters upon the performance
duties after
having passed satisfactorily the usual physical
e:141ination.
Approved unanimously.
the
Letter to Mr.
Sidney Hillman, Associate Director General of
Orric
e of Production Management, reading as follows:
off. "Your letter
of September 5 was received in this
Boalif
de4.°11 3eptember 13 and I have been requested by the
yollr'
0 advise you that it will offer no objection to
merit aPProaching
Mr. Guy T. Nunn with an offer of employ—
in yZ,
1 ,3YceT
'
te
ff, in view of the circumstances stated
Approved unanimously.
1205
Letter to Mr. Hays, Vice President and Secretary of the Fedal Reserve
Bank of Cleveland, reading as follows:
"The Board of Governors approves the change in the
1?ersonne1 classification plan of your Bank as requested
in Your letter of September 13, 1941."
Approved unanimously.
Letter to Mr. Young, President of the Federal Reserve Bank
Of 01,,
"
'
J eagO,
reading as follows:
"This refers to the report of examination of the
:
r u-kc of Sturgeon Bay, Sturgeon Bay, ;
7 iisconsin, as of Au"
St 4,
1941, and the analysis thereof on Form F. R. 212.
appears that since the preceding examination .
the b
t?e bank has obtained permission from the State author),
t eexercise fiduciary powers and commenced to exerm without obtaining the Board's approval pursuant
LS
.fondition of membership numbered 4 which reads as
.et,R
'4.
That except with the approval of the Federal Reserve Board there shall be no change
in the general character of your assets or
broadening in the functions now exercised
by you, such as will tend to affect materially the standard now maintained and required as a condition of membership.'
was
our counsel expresses the opinion that approval
slibmtPt required but, at his suggestion, the question is
b'anktted to the Board. It is the Board's view that when
- subject to this condition of membership commences
,
to e
1-roise fiduciary powers there is
such a broadening
apprthe
.cl functions exercised by it
as to require the Board's
a 1,,I Yal under the
condition. This matter is covered by
le-ti:',.-112g published
on page 865 of the Federal Reserve Buleffetl.or iJovember,
1924, (FRLS /3720) which is still in
°f th:Ac
"
rdingly, you
ques.t:: aPPlicability ofare requested to advise the bank
the condition of membership in
yoill:°n, and to
obtain and forward to the Board, with
tioneeommendation in the premises, a letter of appla
:cathe bank for permission to exercise the fiduciary
;
9/16/ta
—3—
"Powers granted to it by the State authorities. The appli?ation should be accompanied by detailed information simlar to that
furnished in the case of national banks applyfor trust powers (Form F. R. 61a - page 3),
to suppleent that
contained in reports of examination of the applicant bank."
Approved unanimously.
z'
Telegram to Mr.
Crause, Director of the Instalment Credit Divior the
Federal Reserve Bank of St. Louis, reading as follows:
if
"Your wire re V-56. Principal
purpose of sections
Re) and 5(c)('))
was
to
prohibit
hi
balloon
notes. Consel
(eently.
requirements of sections may be met by adopti
ither of
n
g
the alternatives specified."
Approved unanimously, with the understanding that a copy of the telegram
would be sent by wire to the other Federal Reserve Banks.
Letter
LAID Mr. Mooney, Supervisor of
the Division of Banking for
the State ,
of K
entucky, reading as follows:
Pant, "Ilr- M. J. Fleming, President of the
Federal Reserve
ofF °f C
leveland, has written us that you have graciously
Of Zljed the facilities of
your office in the enforcement
re
oc„, Thegulation of consumer credit.
Board of Governors 'wishes to thank you for your
o(rI%ricelo4
t eZi( t
31;11!t it will be very glad to avail itself
1
nient "The exact
procedure to be followed in the enforceever °P Re
wol,k, the gulation V; has not yet been determined. HowBoard has in mind the arrangement which was
to jd out
with the State Banking Authorities with respect
/Z1i;11:1=ssimilar situation existing in connection
centTration ofRegulation U. As you perhaps know, the
the Board's Regulation IV has been detankaa—led as far
as possible among the Federal Reserve
and in due course, therefore, it may be expected
207
9114/41
—4—
"that the officers of the Federal Reserve Bank of Cleveland will communicate further with
you on this subject."
Approved unanimously.
Letter to the Comptroller of the Currency, Washington, D. C.,
l'eacling as
follows:
A
"It is respectfully requested that you place an or—
der with
ing the the Bureau of Engraving and Printing, supplementorder requested June 14, 1941, for the printing
Of
Federal reserve notes of the 1934 Series in the amount
al-Idd
enomination stated for the Federal Reserve Bank of
`
levsland:
Denomination
Number of
sheets
200,000
Amount
12,000,000"
Approved unanimously.
It was
suggested that the Board authorize the payment of the
e4t Of luncheons
served in the Board's dining room today to Messrs.
'.(i1141'd Potter,
Jr., President, H. L. Willis, Executive Vice Presidelit' and JR. Kellam, Jr., Cashier, of the Commerce Union Bank of
44111vi1lel
Tennessee;
Floyd Odium, of the Office of Production Man4eerilent; and Edvrin
Weisl, an attorney from New York.
Approved unanimously.
Thereupon the meeting adjourned.
Secretary.
ce Chairman.
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