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18761 A meeting of the Board of Governors of the Federal Reserve Sys- teta nd$ held in Washington on Thursday, September 24, 1942, at 11:00 a.m. PRESENT: Mr. Mr. MT. Mr. Mr. Ransom, Vice Chairman Szymczak McKee Draper Evans Er. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Thurston, Special Assistant to the Chairman Mr. Smead, Chief of the Division of Bank Operations Mr. Thurston presented a letter which had been received this krning from Mr. Henderson, Administrator of the Office of Price Adrnin- istration, outlining a plan which has been worked out by the Office of Price Administration and which provided for the transfer of ration credlte thl'ough bank accounts in a manner similar to that in which money cred48 are tr ansferred by check. The letter also stated that, as a means of tertille the Practicability of the plcn, the Office of Price Administra4 Pt°Posed to try it experimentally for a period of six to eight weeks -AlbnY, Sc henectady, and Troy, New York, and the thq the territory, office was particularly anxious to secure the assistance of the in ear g out the experiment, and that at if the test proved suc- : e14 till it would need the System's further assistance in developing and 4-Nkeing the plan on a nation-wide basis. 41% Thurston stated that he had called the office of the CompOf the Currency and the Chairman of the Federal Deposit Insurance 9/24/42 -2- Corporation and had been advised that similar letters had been received bYthose Offices and that they were being acknowledged today with the state—, that the respective agencies would be glad to do whatever they °01111to cooperate. The letter from Mr. Henderson was read, and during the ensuing cliectu3pti --‘°n it was stated that this whole matter had been discussed in- rice bY representatives of the Board with representatives of the OfOf Price Administration, the Comptroller of the Currency, and the Pecler.,1 the ueposit Insurance Corporation in a conference which was held in ped "al Reserve Building on September 8, 1942, and that Messrs. Rice arid will, the mat ls of the Federal Reserve Bank of New York had been in touch with ter and had assured the representatives of the Office of Price AdOfl that the New York Bank would be glad to be of such assist- 414 as it could. In connection with a reference to the question of reirtIbilx'senient of the commercial banks for the services rendered, Mr. Smead e144d that it Was expected that the banks would be reimbursed but that deci 11 had been reached on that aspect of the problem. At the conclusion of the discussion, the following reply to Mr. Henderson's letter was approved unanimously, with the understanding that a copy of the reply and of the incoming letter would be sent to Mr. Sproul, President of the Federal Reserve Bank of New York, with a request that he have appropriate representatives of the Federal Reserve Bank keep in close touch with the experiment to be conducted in New York State and advise the Board from time to time during the course of the experiment of the results being obtained and, when the experiment is completed, 11-87 8 9/24/42 Of any suggestions that have been made by banks or others in the territory for the improvement of the procedure, together With his own views: re„, 7rhis is to acknowledge your letter Number 711:1,JK, in a .°1 -ru. to the plan which you desire to try experimentally for m Period of six to eight weeks in Albany, Schenectady, and ,New York, and the surrounding territory. 8.2 wrhe Board has requested me to advise you that it de— to do everything possible to assist your office in the 14s development of a practicable plan, in the light of what aillearned from this experiment, the importance of which we ecognize." Szymczak outlined briefly the arrangements that had been made bY the p residents of the Federal Reserve Banks for a dinner meeting at the CE/l'itOn licitel on the evening of September 28 at which representatives of t 1117 would be present for a discussion of certain matters arising e°411ection with the work of the Victory Fund Committees. Mr. Morrill 441(1that he had received a telephone call from Mr. Sienkiewicz, Sec— °f the Presidents' Conference, in which the latter extended an 1411.1tati°n to the members of the Board and Messrs. Morrill and Smead of the tioard,s staff to be present. It was agreed that Messrs. Eccles, Szymczak, Morri13, and Smead should attend the dinner meeting as the representatives of the Board. Ur. McKee reported briefly on certain matters which were discussed he4 41 ers' Conference in Philadelphia, which he attended on Tuesday Ated"sday of this week, and on discussions which he had in Philadelphia ilttlIrice P resident West of the Federal Reserve Bank of San Francisco re1114411R to the further expansion of banking offices owned or controlled by 18'79 9/24/42 -4Tralleamerica Corporation in the State of California. At this the , point, Messrs. Thurston and Smead left the meeting, and stated with respect to each of the matters hereinafter referr ed to was then taken by the Board: The minutes of the meeting of the Board of Governors of the Fed"'Ileserve System held on September 22, 1942, were approved unanimously. The minutes of the meeting of the Board of Governors of the Fede41 ReserVe System held on September 23, 1942, were approved and the acti°48 recorded therein were ratified unanimously. Letter to Mr. A. H. McKinley, Cashier of The Peoples National Bank REineoc ks Hancock, Maryland, reading as follows: i ' theNis refers to your letter of September 18, 1942 requestissuance of a permit under the provisions of section 8 ng he Pss °ft as --Layton Act authorizing the services of Mr. J. S. Ambrose ma - uirector of The Peoples National Bank of Hancock, Hancock, Weal;Tld, and the Citizens National Bank of Berkeley Springs, Virgjflj aUnder the provisions of section 8 of the Clayton Act as ed by the Banking Act of 1935 the Board of Governors of the permi:deral Reserve System is no longer authorized to issue L's in individual cases. Whether an individual may lawplo Y serve at the same time as a director, officer or ena,ot Yee of more than one bank depends upon the applicability ReZr,t.in exceptions contained in the statute and the Board's thee-a'ion L relating to interlocking directorates. One of tieee exceptions provides, in effect, that a director, ofas art or employee of a member bank may serve at the same time alleh director, officer, or employee of another bank provided eitv ,her bank is not located and has no branches in the same eat4 u(Iwn or village as that in which such member bank is lotheret°r in any city, town or village contiguous or adjacent • the b"Prom available information it appears that neither of Hane ' allke named operates a branch; and it also appears that rIct 2ck/ Maryland, and Berkeley Springs, Vvest Virginia, are -°11Liguous or adjacent to each other, since they are 1880 9/24/42 naPo Pr 4 - iately m six miles apart and are located in different St at n4, eS* Accordingly, it does not appear that the services Ambrose as a director of the banks referred to are trhibited by the provisions of the Clayton Act or the ardts Regulation L." Approved unanimously. Thereupon the meeting adjourned. APProv Vice Chairman.
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