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f; Minutes of actions taken by the Board of Governors of the Federal Reserve System on Wednesday, September 23, 1953. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr, Mr. Mr. Mr. Mr. Mr. Martin, Chairman Szymczak Evans Vardaman Mills Robertson Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Kenyon, Assistant Secretary Thurston, Assistant to the Board Riefler, Assistant to the Chairman Thomas, Economic Adviser to the Board Vest, General Counsel Youngdahl, Assistant Director, Division of Research and Statistics Following an informal discussion of a proposal of the Treasury to issue gold certificates against approximately $1 billion of free gold held by the Treasury in its general fund, Governor Evans referred to the statement by Chairman Martin at the meeting on September 21, 1953, concerning the discussion which he and Governor Mills had had with representatives Of the Association of Reserve City Bankers regarding the arrangements being made to have commercial banks take over a large volume of Commodity Credit Corporation loans this fall. Governor Evans commented that a situa- tion of ease in the money market and a rate on Treasury bills of around 1-3/4 per cent would encourage country banks to take advantage of their excess reserves and assume these loans. In this connection, Chairman Martin stated that yesterday Mr. Gidnsy, comptroller of the Currency, referred in the course of a conversation 9/23/53 -2- to the suggestion of the representatives of the Association of Reserve CitY Bankers that Commodity Credit Corporation loans be shown separately on bank condition reports obtained by the Federal bank supervisory agencies. Be said that Mr. Gidney appeared to favor complying with this suggestion. In a discussion of this matter, doubt was expressed by members of the Board that it would be desirable to amend the form of condition statement in this respect without at the same time making a number of changes Which would tend to provide a more complete disclosure of the asset condition of the reporting banks. The meeting then adjourned. During the day the following additional actions were taken by the Board with all of the members present: Minutes of actions taken by the Board of Governors of the Federal Reserve System on September 22, 1953, were approved unanimously. Telegram to Mr. Wilbur, Chairman, Federal Reserve Bank of San Prancisco, authorizing him to issue a limited voting permit, under the Provisions of section 5144 of the Revised Statutes of the United States, to Transamerica Corporation, San Francisco, California, entitling such organization to vote the stock which it owns or controls of First National Bea* of Arizona, Phoenix, Phoenix, Arizona, at any time prior to December 1, 1953, to act upon proposals (1) to increase the capital stock of such bank, and ( ) to amend the articles of association of such bank to conform to articles recommended by the Comptroller of the Currency, 9/23/53 -3- Provided that all action taken shall be in accordance with plans satisfactory to the Comptroller of the Currency. Approved unanimously. Letter to The National Bank of Bossier City, Bossier City, Louisiana, reading as follows: The Board of Governors of the Federal Reserve System has given consideration to your application for fiduciary powers, and grants you authority to act, when not in contravention of State or local law, as trustee in connection with Public Housing Authority bonds and as registrar of such bonds, the exercise of such authority to be subject to the provisions of the Federal Reserve Act and the regulations of the Board of Governors of the Federal Reserve System. This letter will be your authority to exercise the fiduciary powers granted by the Board pending the preparation of a formal certificate covering such authorization, which will be forwarded to you in due course. Approved unanimously, for transmittal through the Federal Reserve Bank of Dallas.
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