19400513_minutes.pdf

673

SYst eta

after

A meeting of the Board of Governors of the Federal Reserve

W as held in Washington on Monday, May 13, 1940, at 1130 a.m.

PRESENT: Mr. Eccles, ChairmenMr. SzymczakMr. McKeeMr. DavisMr.. Draper

?sclera).

Mr. Morrill, SecretaryMr. Bethea, Assistant SecretaryMr. Carpenter, Assistant SecretaryMr. Clayton, Assistant to the Chairman

The action stated with respect to each of the matters herein-

to WRS taken by the Board:

The- minutes of the meeting of the Board of Governors of the

Reserve System held on May 10, 1940, were approved unanimously.

Mernorandtrn dated May 9" the Division of Researchthe

reason stated ina Peritanent basis

rate of t1,440 per

ters Itpon the performancerEletclrillr the usual PhYsi cal

1940, from Mr. Goldenweiser, Director

and Statistics, recommending that, for

the memorandum, Miss Gretchen Hill be appointed

RS a

annum,

clerk in the Division, with salary at the

effective as of the date upon which she

of her duties after having passed satis-

examination.

Approved unanimously.

tt_ Memorandum dated May 4, 1940, from Mr. Peulger, Chief of thevieion 0.

in 'L Examinations, recommending that, for the reasons statedthe In_=Lao rero_

'tura ,

COloted

be Assistant Federal Reserve Examiner Herold J. Newman131.

'10 the Position of Federal Reserve Examiner.

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

5/1V40-2 -

In accordance with the above rec-ommendation Mr. Newman was appointed anexaminer to examine Federal Reserve Banks,member banks of the Federal Reserve System,and corporations operating under the pro-visions of Sections 25 and 25(a) of theFederal Reserve Act, for all purposes ofthe Federal Reserve Act and of all otherActs of Congress pertaining to examinationsmade by, for, or under the direction ofthe Board of Governors, of the Federal Re-serve System, and was designated as aFederal Reserve Examiner, effective im-mediately.

Mellorsndum°t the sion

13°Ilertri Jnnior

leave Or absence without

the first half of June 1940the

Litteuer School of Harvardthke to

make contributions on hisWith

the understanding that heIkt1ons.

dated May

674

9, 1940, from Mr. Goldenweiser, Director

of Research and Statistics, recommending that George

Economist in the Division, be granted an additional

pay for each time as may be necessary during

in order to complete the semester's work

University, and that the Board con-

behalf to the Retirement System

continue to make his own contri-

Approved unanimously, with the under-standing that Mr. Doherty will return tothe'

employ of the Board not later thanTune 15, 1940.

14tat TelegMm to Mr. Fry, Vice President of the Federal ReserveOr P4

J-uamond, reading as follows:

sirtust"Retai May 13. Board approves designation of B. F.11°11g es special assistant examiner with understanding


5/13/40-3-

will not be transferred permanently to examinationwc)rk without Board's approval."


Letter dated May 11, 1940, to the board of directors of the

'Lorenzo State Bank", Lorenzo,t1

°1118 or raerabership numbered 1

and the following

Etaication for membership

-4)riate amount of stock in the Federal Reserve Bank of Dallas:

"4. Such bank shall make adecuate provision for de-114Z1teiso.

in its banking house and furniture and

Texas, stating

to 3 contained

675

that, subject to condi-

in the Board's Regulation

Special condition, the Board approves the bank's

in the Federal Reserve System and for the

APproved unanimously, together witha letter to Mr. Gilbert, President of theFederal Reserve Bank of Dallas, readingas follows:

"Thetena e, Board of Governors of the Federal Reserve Sys_Lcr.,t"Proves the application of the 'Lorenzo State Bank'syai"z°, Texas, for membership in the Federal Reserveclo subject to the conditions prescribed in the en-1304: letter which you are requested to forward to the

°D Directors of the institution. Two copies ofslich letter are also enclosed, one of which is for yourwarA ,and the other of which you are requested tofor-

the Commissioner of Banking for the State of" for his information.kett "It has been noted that your office will follow thethe er c)f the bank's reducing to within statutory limits

eceas balance with a nonmember bank."

Letter 4or NI vo Mr. Hill, Vice President of the

ecialPhia, reading as follows:

Colice:Ilt:r.euT ais

U 1,s made to your letter of May 6, 1,940,

ption by The Union Banking & rust

Federal Reserve Bank


676

5/le3/40-4-

"CmaPanY of Du Bois, Pennsylvania, Du Bois, Pennsylvania,! State member bank, of the deposit liabilities of theileoples State Bank, Du Bois, Pennsylvania, a nonmember bank,nich Wes effected as at the close of business on May 4,-40940 ) with the approval of the Secretary of Banking of theom

monwealth of Pennsylvania.4.4 "It would appear from the comments and other informa-;Ion contained in your letter that the transaction die not

Scope in enY change in the general character of assets ori. Of corporate powers exercised by the rember bank with-„the meaning of the general condition numbered 3 under

it was admitted to membership. Therefore, the Boardsi„, interpose no objection under the condition of member-'111) to the transaction.”


Latter dated May 11, 1940, to Mr. Gidney, Vice President of the

°̀4* Ileserve Bank of New York, reading as follows:

194n "RaceiPt is acknowledged of your letter of May 9,cii-) advising that negotiations between the National1407.v.13ank of New York and the Bronx County Trust Company,bra:Xk, for the acauisition by the latter of threeit ;reS Of the National Bank, have been terminated.the""e Plans are subseauently revived it is assumed that1;Zetter will be again referred to the Board, since,or ew of the changed circumstances, the Board's letter

4111 26, 1940, is no longer effective."


Letter to the Presidents of all Federal Reserve Banks, reading1°13-ows:

N7I:n order that the Board of Governors may have in-loasi i°71 as to the extent to which different lines ofProvi-:” and industry have applied for credit under thethe--'mns of Section 1.10 of' the Federal Reserve Act andbYtinnt to which they have been granted such credit

Reserveeder

banks, it will be appreciated ifn tarnish the Board data up to May 31, 1940 regard-clo -eic,;4=ztions in the form called for by the en-


677

-5-

"It is desired that the information be tabulatedseParately for applications for industrial advances andfor applications for commitments to make industrial ad-vances) classified in both cases according, to the en-closed

classification by industries, end that the appli-catimns in each group be arranred in the chronological?Pcler

e of their receipt. In order to insure uniformityJ-11. th, Preparation of these lists a few hypothetical ex-

te11113.tes are shown on the enclosed schedule. It is planned

pl°i i\lillish a copy of the data, exclusive of names of ap-ro;'"us, to the National Bureau of Economic Research

11,,se in a study that it has undertaken and, accord-it is requested that the information be furnished

mi..clUplicate. A supply of Form F.R. for use in sub-ro;ting the desired information, and of Form P.R.

use in reporting action taken on applications receivedetirrently,°ctob as reauested in the Board's letter S-187 of

er 17, 19F9, is also enclosed."


Telegrara to Mr. Schaller, President of the Federal Reserve

f Chicago, reading as follows:

tilist,i"B"rd approves employment law firm of Mayer, Meyer,Platt and Robert N. Holt, of Chicago, as special

isoelof°r Purposes and on terms stated in your wire

Approved unanimous:

Metiorandum dated May 1, 1940, from

.

Snead, Chief of the

4visi°A of Bank Operations, recommending that, for the reason stated

ill the nic"renclunl) e mimeographed tabulation of the replies receivedNra the

Federal Reserve Banks to the Board's letter of March 22, 1940

(1L43)) with respect to t h e revi s ed check co ll e octin procedure, beaexIt

t° 1111 Pederel Reserve Banks for their information. The memorandum


678

543/413-6-

stated that it seemed desirable that some effort should be made to

blIng about greater uniformity among the Federal Reserve Banks with

resPeet to their check collection operations than now exists and that

ttismight be accomplished by taking the matter up with the individual

liederal Reserve Banks concerned.

ADDitve

The recommendation was approvedunanimously, with the understanding thatMr. amead would confer with Mfr. Szymczakfor the purpose of determining the mannerin which the question of bringing aboutgreater uniformity in the Banks' checkcollection operations Should be discussedWith the Federal Reserve Banks involved.

Thereupon the meeting adjourned.

Chairman.

ecreta .


19400513_minutes.pdf

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