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1430 A meeting of the Board of Governors of the Federal Reserve d'steln Was held in Washington on Friday, September 22, 1944, at 11:45 asra. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman McKee Draper Evans Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Thurston, Special Assistant to the Chairman Mr. Goldenweiser, Director of the Division of Research and Statistics Mr. Smead, Director of the Division of Bank Operations Mr. Dreibelbis, General Attorney Mr. Wyatt, General Counsel There were presented telegrams to Messrs. Treiber, McCreecly, 411c1 Clouse, Secretaries of the Federal Reserve Banks of New York, Phila— Oelh1„, and Cleveland, respectively, and Mr. Earhart, Vice President 014 the Federal Reserve Bank of San Francisco, stating that the Board 413Pro -ved the establishment without change by the Federal Reserve Bank Of 11 Francisco on September 19 and by the Federal Reserve Banks of ' y °I*, Philadelphia, Cleveland, and San Francisco on September 21, 194L r of the rates of discount and purchase in their existing schedules. . " Approved unanimously. Before this meeting each member of the Board had received a tom. 0f a memorandum submitted yesterday afternoon by Mr. Sienkiewicz, 4cr etarY of the Presidents' Conference, entitled "Notes on Topics for 1431 9/22/44 -2- Joint Meeting of the Board of Governors and the Presidents' Conference" eclIt41ning advice of actions taken by the Presidents' Conference and Subldtted for consideration by the Board of Governors. The matters referred to in the memorandum were reviewed, and it was decided unanimously that: . 1. If the Conference should decide to employ a fullt3:I1ie manager to carry on the work of the insurance comrMlttee in connection with the loss-sharing agreement which had been approved by the Presidents to become effective January 1, 1945, the Board would have no objection. 2. The problem of overtime payments under the Fair Labor Standards Act of 1938 involved questions that Mr. Leonard, Director of the Division of Personnel Administration, and the Board's Legal Division should consider, and a committee of the Presidents might be appointed to confer with Mr. Leonard and Mr. Dreibelbis and to make a I'ecommendation following the consideration of these questions. 3. The proposal by the Presidents that "hereafter the recommendations of the System Research Advisory ComMlttee should be made both to the Board of Governors and to the Research Committee of the Presidents' Conference, and that the Research Committee of the Presidents' Conference, after consultation with the Presidents whenever necessary, should confer with the Board of Governors with Power to act in formulating System Research programs" raised a question as to whether it properly expressed the a:ntent of the Presidents, particularly as to the authority Intended to be conferred on the Presidents' Research Com1141.ttee. It was thought that this might be changed to provIde that: "The System Research Advisory Committee, which 20nsists of staff members, shall send to the Research 'ommittee of the Presidents' Conference copies of its rePorte to the Board of Governors, and the Board shall give the Presidents' Research Committee an opportunity to disenss with the Board reports and recommendations received from the System Research Advisory Committee in order to 4432 9/22/44 -3-- assist the Board in formulating System policy in connection with these reports." It was understood that this suggested change would be submitted to the Presidents' Conference as a tentative proposal. 4. There was no objection to the reduction of the oammitmnt fees on loans under section 13b of the Federal Reserve Act to make them conform to the fees prescribed in connection with loans under Regulation V. It was felt that the remaining matters referred to in the memorandum from the Presidents did not require action by the Board before the joint meeting of the Board with the Presidents, but it was understood that Chairman Eccles would present at the joint meeting (1) the memorandum read at the meeting with the Federal Advisory Council on September 18, relating to legislation to finance business in the postwar period, and (2) the memorandum approved at the meeting of the Board on September 19 relating to policy with respect to the Bretton Woods agreements. At this point Messrs. Thurston, Goldenweiser, Smead, Dreibelbis, 417411Vatt withdrew from the meeting. 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 Pikk 141 Reserve System held on September 21, 1944, were approved unani' ' rgoi,eisr. Letter to Mr. Fletcher, Vice President of the Federal Reserve ktlik of Cleveland, reading as follows: "In accordance with the request contained in your letter of September 18, 1944, the Board approves the apPcintment of Don L. Kreider, at present an assistant 1433 9/2244 -4- "examiner, as an examiner for the Federal Reserve Bank Of Cleveland. Please advise us of the date upon which the appointment becomes effective." Approved unanimously. Letter to Mr. Nardin, Federal Reserve Agent of the Federal Reserve Bank of St. Louis, reading as follows: "In accordance with the request contained in your letter of September 15, 1944, the Board of Governors apProves the payment of salary to Miss Minnie Smith, Alternate Assistant Federal Reserve Agent, at the rate of $2,280 per annum, effective October 1, 1944." Approved unanimously. Letter to Mr. Neil G. Greensides, Acting Chief, Division of Ztatin ation, Federal Deposit Insurance Corporation, reading as follows: "In compliance with the request contained in your letter of September 18, 1944, the Board of Governors of the Federal Reserve System hereby grants written consent, flreuant to the provisions of subsection (k)(2) of Section t28 of the Federal Reserve Act, for examiners for the f.:ederal Deposit Insurance Corporation to examine the t.tenwick Savings Bank, Renwick, Iowa, in connection with lts application for continuation of deposit insurance after withdrawal from membership in the Federal Reserve System. "There are no unfulfilled conditions nor incomplete corrective programs with respect to the member bank in ??nnection with which the Board would suggest incorporalon of conditions for continuing its status as an insured bank." Approved unanimously. Letter to Honorable Ganson Purcell, Chairman, Securities and 41ge Commission, reading as follows: ' 1434 9/22/44 —5— "The Board has for immediate consideration an application for a voting permit of Baystate Corporation, Boston, Massachusetts, as successor to Old Colony Trust Associates. Under the terms of an agreement between these two organizations, the corporation is to take over the business of the associates on or before September 30, 1944, conditioned Upon the prior authorization of the voting permit. "In a letter dated September 13, 1944, to Mr. Ralph E. Flanders, President of the Federal Reserve Bank of Boston, a copy of which is enclosed for your information kid files, Baystate Corporation states that it expects to carrY on the business of Old Colony Trust Associates in the same general may it has been carried on in the past arid requests that the Board of Governors make a determinat:lon under Section 3 (c) (4) of the Investment Company Jict of 1940 that the corporation is primarily engaged in the business of holding the stock of banks and trust comPanies. For your further information there is attached also a transcript of pertinent excerpts from the memorandum Prepared in the Board's Division of Examinations with respect to the application for a voting permit. "In view of the approaching date of the plan of re?rganization, it will be appreciated if you will advise he Board promptly whether or not you desire to be heard .1:r1 this matter, as provided in Section 3 (c) (4) of the Investment Company Act of 1940. "If there is any further information which you desire in this connection, it is suggested that representatives Of your staff contact representatives of the Board's Divislon of Examinations." Approved unanimously. Letter to Mr. Clark, Vice President of the Federal Reserve tazik of Atlanta, reading as follows: "In accordance with the recommendation contained in 3r?ur letter of September 11, 1944, the Board interposes no Objection to the additional investment of not more than 1'225,000 in bank premises by the American Trust and Bank1g Company, Chattanooga, Tennessee, for the purposes cutlined in your letter." Approved unanimously. 1435 91 /44 -6— Letter to Honorable Preston Delano, Comptroller of the Cur— Y, reading as follows: "Reference is made to your letter of August 22, 1944, to the Federal Reserve Bank of San Francisco, a ?opy of which was sent to the Board of Governors, stat— ing that Bank of America N.T. & S.A. had advised your Office of the removal of its Maricopa branch to Arvin, California. The Board also has been advised by the Fed— eral Reserve Bank of San Francisco of the receipt of notice from Bank of America N.T. & S.A. of the establish— ment of a de novo branch at Arvin, California, and that the Arvin branch is using a dormant permit arising out of the closing of a branch at Maricopa. It appears that the Maricopa branch had been dormant since November 1942. It is understood that the recently established branch at taovis used a Merced branch permit which had been dormant several years and that possibly other dormant permits have been used from time to time. "It will be appreciated if you will furnish the Board a list of dormant permits which are available for the es— tablishment of future branches of Bank of America N.T. & Similar information is requested with respect to all Other Transamerica national banks. "If lists of dormant permits which are available for .,he establishment of future branches of other national banks 3.11. the Twelfth Federal Reserve District have been compiled, it will be appreciated if you will furnish the Board with c°Pies of them also." Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks readtile 45 follows: "There is enclosed herewith a memorandum addressed to the Board by Colonel Paul Cleveland, of the War Depart— ment, under date of September 20, 1944, requesting each fisderal Reserve Bank to send to each financing institution ;°1ding a guarantee agreement on the 1942 form or on the 4-943 form a notice of objection to any renewal or extension except with the consent of the Guarantor and as provided 1436 9//. /44 -7Explanatory Note 5 to the 1944 V-Loan Guarantee AgreeApproved unanimously, together with the following telegram to Mr. Watkins, Assistant Manager of the Los Angeles Branch of the Federal Reserve Bank of San Francisco: "Re your wire September 21 Board is transmitting to Federal Reserve Banks War Department memorandum dated September 20, 1944, concurred in by Navy and Maritime, which requests that Financing Institutions holding 1942 or 1943 form of guarantee agreement be notified that Guarantor objects to any renewal or extension beyond existing maturity date except with consent of Guarantor and as provided in Explanatory Note 5 to 1944 V guarantee agreement.” Thereupon the meeting adjourned. Chairman.
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