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1469 Minutes of actions taken by the Board of Governors of the Fecie ral Reserve System on Wednesday, September PRESENT: 7, 1949. Mr. McCabe, Chairman Mr. Eccles Szymczak Mr. Draper Mr. Evans Mr. Vardaman Mr. Clayton Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Minutes of actions taken by the Board of Governors of the ed.e al Reserve System on September 6, 1949, were approved unani- 111011814r Memorandum dated September tor or 6, 1949, from Mr. Millard, Direc- the Division of Examinations, recommending that Harry J. an examiner for the Federal Reserve Bank of New York, be ap- 1°14ted an examiner by the Board of Governors for the purpose of 1541"tielP8.t1 ng in the forthcoming examination of The Chase Bank, New 1.°111t) New York. Approved unanimously. serve Letter to Mr. Stetzelberger, Vice President of the Federal ReBe.nk of Cleveland, reading as follows: "In accordance with the request contained in your letter of August 31, 1949, the Board approves the apP eointments of Frank B. Kehres and Harry M. Pugh, at preReent assistant examiners, as examiners for the Federal !erve Bsnk of Cleveland. Please advise us of the 1"ee upon which the appointments become effective and 149() 9/7/49 -2- "also as to salary rates." Approved unanimously. Letter to Mr. Edison H. Cramer, Chief, Division of Research 44c1 Statistics, Federal Deposit Insurance Corporation, Washington, b. 0 *) reading as follows: "In reply to your letter of August 26, 1949, we shall be glad to make available to your office the reof condition of State member banks in the Federal Reserve System as of June 30, 1949, for the t abulations described in your letter, under the same conditions as those outlined in the Board's letter of l',Ietrch 30, 194), to your office, enclosing a copy of the of the same date to Mr. Norman J. Wall of the heltr DePartment of Agriculture, namely: (1) That the Bureau of Agricultural Economics of the Department of Agriculture ' 41-11 not publish the figures obtained therefrom, or make them available except for official use within the DepartIllent, in a manner that would disclose figures for any c01111tY or size group containing less than three insured .(3111mercial banks; (2) that the tabulation to be made for ue Agricultural Department of the American Bankers Assoiation is for the confidential use of the Association; 411., 1d (3) that no figures for any county will be made availle to the Association if there are less than three insUred commercial banks in the county. "During this project you may also place on punchthe additional items you requested for your confirntial use in making studies concerning the assets and ' iabilities of all insured commercial banks." Approved unanimously. Letter to Mr. Leach, President of the Federal Reserve Bank ot _ "'QInd, reading as follows: "There is enclosed a copy of a letter received by gov ernor Clayton from Mr. John D. Hospelhorn, Deputy Bank Mnlissioner of the State of Maryland, dated August 30,1949, GO 1471 9/7/49 -3- regarding the payment of interest by a member bank on a deposit of uninvested trust funds made by its trust department in its own banking department, together with a copy of the Board's proposed reply. Before transmitting this reply, the Board will appreciate any comments Iihich you may have with respect to this matter." Approved unanimously, together with the following proposed letter to Mr. Hospelhorn: "This is in reply to your letter of August 30, 1949, addressed to Governor Clayton, who is at present absent troM the city, regarding the practice of a trust company Maryland, a member bank, in depositing uninvested cash (n individual trusts in an account in its banking departand paying interest on such deposit, the interest ueing distributed semiannually to the respective individual trust accounts. "from the facts stated in your letter it appears that the deposit in question does not comply with the reWirements of a savings deposit or of a time deposit as set forth in the Board's Regulation (4 and that therefore deposit is a demand deposit on which interest may not tawfully be paid by the member bank under the law or unuer the Board's Regulation. "The Board has for some time had under consideration a Westion with respect to the circumstances under which tiTinvosted trust funds of individual trusts deposited by ;Ile trust department of a member bank in a single account 111 its own banking department may properly be regarded as 8 time deposit under the Board's regulations where the time deposit agreement as to notice of withdrawal is entered into between the two departments. That quesion has not yet been determined but, irrespective of the ! °11clusion which may be reached in this matter, the payment interest on a demand deposit consisting of uninvested :.1:11st funds, which is apparently the case under the prac'-ce described in your letter, would not be permitted under the law." Secretary's Note: Upon receiving a reply from Mr. Leach, the letter to Mr. Hospelhorn was sent under date of September 13. 1472 -4Letter to Mr. Black Cashier of the Federal Reserve Bank of hi ago reading as follows: "Reference is made to your letter of July 30, 1949, in which you advised that it appears expenses for 1949 at Your Bank will exceed the budget estimates for the Year as follows: $ 4,700 General Overhead 19,000 Furniture and Equipment 4,300 General Service 3,700 Discount and Credit 84,000 Provision of Space "The Board accepts the revised figures as submitted, atel - appropriate notations are being made in the Board's records." Approved unanimously. 411111° doedit.d Af Secta
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