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1295 A meeting of the Board of Governors of the Federal Reserve Systez was held in Washington on Tuesday, September 7, 1943, at 11:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Bethea, Assistant Secretary Kr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinrererred to was taken by the Board: The minutes of the meeting of the Board of Governors of the FedRe8"ve SYstem held on September 6, 1943, were approved unanimously. 1181110randum dated Seotember 1, 1943, from Mr. Goldenweiser, Direcor the Division of Research and Statistic's, recommending that Mrs. 1441.v S°111e Krauss be appointed as a clerk-typist in that Division on a le1137 basis for an indefinite period, with basic salary at the rate c44,440 Per annum, effective as of the date upon which she enters upon the h CO of her duties after having passed satisfactorily the PhYsical examination. Approved unanimously. ernorsndum dated September 6, 1943, from Mr. Thomas, Assistant 1)4ector Of the Division of Research and Statistics, submitting the resI„ 1Ettion ' - OrL1SS Georgiana Benjamin as a clerk-typist in that Division, 1_296 917/43 -2- to become eald. effective as of the close of business on September 6, 1943, reco mmending that the resignation be accepted as of that date. The resignation was accepted. Letter to kr. Creighton, Chairman of the Federal Reserve Bank )308 t°111 reading as follows: our t"Referring to your letter of September 3 and confirming here elephone conversation of this morning, it is our view 111 that there is no material conflict between the statea t aPpearing on page 7 of the draft of letter to MT. Brainforwarded to you with Mr. Morrill's letter of August 28, dI the action taken by the Conference of Chairmen of the ai el'al Reserve Banks on October 5, 1942, emphasizing the , ect responsibility of the auditor to the Board of Director 411 ' end the fact that in performing his duties the auditor for not be dependent on any executive or operating officer the security of his position. 04 "The statement contained in the first full paragraph Page 5 that 'each Bank also has a full time Auditor who reports directly to the board of directors through the Chairthe Audit Committee' is, of course, in accord withthe co8ltion taken by the Conference of Chairmen. The statement orntained in the first full paragraph on page 7 of the draft ez letter to MT. Brainard that 'The President is the chief eutive officer, and all other executive officers and emteres of the Bank are directly responSible to him.' is Re, en directly from paragraph 4, section 4 of the Federal 4:erve Act. The inconsistency to which you refer is more ogrent than real because the auditor, while occupying an ti,lci l position in the Bank, is not regarded as an 'execuBa ye officer' and the special nature of his position in the bi k differs generally in lines of authority and responsi' itY from that of operating officers." W Approved unanimously• Letter to the board of directors of the "Barclay-Westmoreland nwom, Co ' i1111Y", Greensburg, Pennsylvania, stating that, subject to 118 Or membership numbered 1 to 6 contained in the Board's 1297 9/7/43 -3ri H and the following special condition, the Board approves the be ' llizie application for membership in the Federal Reserve System and for tile 41ftpriate amount of stock in the Federal Reserve Bank of Cleveland: (. Prior to admission to membership, such bank shall dispose of the 20 shares of its own stock now carried in its investment account." The letter also contained the following special comment: appears that the bank may possess certain powers which 1.1:' not being exercised and which are not necessarily required the conduct of a banking and trust business, such as the " 7 1 to act as surety in certain circumstances. Attention is : 13 1ted to the fact that if the bank desires to exercise any be el's not actually exercised at the time of admission to MBMto :4s it will be necessary under condition of membership berusred 1 to obtain the permission of the Board of Governors st °re exercising them. In this connection, the Board under10 : d11 s that there has been no change in the scope of corporate ft, ers exercised by the bank since the date of its application -r Xembership. Apparently the operations of the trust department are not 07 ; 4- cTgenizea, records and files being inadequate and control eiajsecurities unsatisfactory. Acceptance of trust business serious responsibility and it is expected that measures 4-1- be taken promptly so that the department will be given adee end efficient supervision and its operations brought into -"JrMity with approved practices and proceaures." 1 Approved unanimously, together with a letter to Mr. Fleming, Presiaent of the Federal Reserve an of Cleveland, reading as follows: 1)1,0 "The Board of uovernors of the Federal Reserve System apGreVes the application of the'Barclay-Westmorelana Trust Company', 7-:/181311rg, Pennsylvania, for membership in the Federal Reserve ex) subject to the conditions prescribed in the enclosed lettel : or which you are requested to forward to the Board of Directors otethe institution. Two copies of such letter are also enclosea, clue °f Which is for your files and the other of which you are reor ;tea to forward to the Secretary of Banking for the Commonwealth ellhsYlvania for his information. ‘4) S 917/43 -4b , "It is assumed that you will follow the matter of the ,8•114's bringinginto conformity with the provisions of law '411c1 the Board's regulations the savings accounts listed on Pt'116e 16(1) of the report of examination for membership and as' s Practice of paying time certificates on demand. It is also that you will see to it that measures are tPken 13tlY to Provide adequate supervision of trust activities iraProvement of trust operations." Approved. unanimously. Thereupon the meeting adjournea. Assistant Secretary. Apk, Ite Chairman.
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