19400813_Minutes.pdf

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A meeting of the Board of Governors of the Federal Reserve

8Yet'em was held in Washington on Tuesday, August 13, 1940, at 10:45

after

PRESENT: Mr. Eccles, ChairmanMr. Ransom, Vice ChairmanMr. McKeeMr. DavisMr. Draper

Mr. Morrill, SecretaryMr. Carpenter, Assistant Secretary

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

referred to was taken by the Board:

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

Pecieral Reserve System held on August 12, 1940, were approved unani-

Inollsly.

Memorandum dated August 9, 1940, from Mr. Carpenter, Assist-

ant Secretary, recommending, for the reasons stated in the memorandum,

that Miss Ruth Ellen Dewey and Miss Frances Pauline Campbell be ap-

P°111ted- on a temporary basis for a period of six months as junior file

in the Secretary's Office, each with salary at the rate of

t, 26n- Per annum, effective as of the date upon which they enter uponthe,

Performance of their duties, and with the understanding that ifthei

services are entirely satisfactory they will be employed on a per-

basis each with salary at the rate of $1,440 and. admitted toth.k'-'11.etlrement System of the Federal Reserve Banks.

Approved unanimously.

Letter to the board of directors of the "St. Bernard Bank Et

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

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1'1711st Co.", Arabi, Louisiana, stating that, subject to conditions

numbered 1 to 3 contained in the Board's Regulation H, the

13°arcl approves the bank's application for membership in the Federal

Reserv'e System and for the appropriate amount of stock in the Federal

Reserve Bank of Atlanta.

Approved unanimously, together witha letter to Mr. Parker, President of theFederal Reserve Bank of Atlanta, readingas follows:

of

"The Board of Governors of the Federal Reserve Sys-tern approves the application of the 'St. Bernard Bank &-crust Co.', Arabi, Louisiana, for membership in the Fed-"al Reserve System, subject to the conditions prescribedIn the enclosed letter which you are requested to forwardtc the Board of Directors of the institution. Two copiesOf such letter are also enclosed, one of which is forYour files and the other of which you are requested toIorward to the State Bank Commissioner for the State ofLouisiana for his information.

"It is assumed that your office will follow the mat-t?r.of the bank's bringing into conformity with the pro-vlslons of law and the Board's regulations the savingsaccount listed on page 16 of the report of examinationfor membership."

Letter to the board of directors of the "First State Bank",

44g81 Texas,

belted 1 to 3 contained

the bankt s applicationaxId

for the appropriateOr °

alias.

stating that, subject to conditions of membership nun-

in the Board's Regulation H, the Board approves

for membership in the Federal Reserve System

amount of stock in the Federal Reserve Bank

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


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"The Board of Governors of the Federal Reserve Sys-tem approves the application of the 'First State Bank',Bangs, Texas, for membership in the Federal Reserve Sys-tem, subject to the conditions prescribed in the enclosedletter which you are requested to forward to the Board ofDirectors of the institution. Two copies of such letterare also enclosed, one of which is for your files and the(Tier of which you are requested to forward to the Com-mIssioner of Banking for the State of Texas for his in-formation.

"It has been noted that following the examinationor membership a conference was held with officers anddirectors of the bank for the purpose of discussing theunsatisfactory features existing in the condition of the1?ank and of outlining the steps to bring about the neededImprovements which the Reserve Bank will expect of theinstitution as a member bank. The Reserve Bank will, ofcourse, follow the situation closely and it is requestedthat the Board be kept advised of developments."

Letter to Mr. Swanson, Vice President of the Federal Reserve

of Minneapolis, reading as follows:

"Reference is made to your letter of August 5, 1940,submitting for consideration as required by conditionOf membership numbered 8, the proposed expenditure by theRonan State Bank', Ronan, Montana, of ,000f or the pur-chase of a building site and the erection of new bankingquarters thereon.

"In view of your recommendation and the informationeubmitted, the Board will interpose no objection under the?ondition of membership to the expenditure of the amountindicated."


Letter to Mr. Chester T. Lane, General Counsel of the Securities

and ,-'"-enange Commission, reading as follows:

2 "This is in further reference to your letter of July

4! 1940 and to the Board's reply of July 11, 1940 regard-'41g certain practices of the Trust Company of Georgia,


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"Atlanta, Georgia, Georgia, in connection with the purchase andsale of securities for customers.

"As indicated in our letter of July 11, we requestedthe President of the Federal Reserve Bank of Atlanta tohave an investigation made of the practices of the TrustCompany of Georgia in this respect. Such an investigationhaS been made and we have furnished to Mr. Pavenstedt ofthe staff of the Securities and Exchange Commission a copyof the letter dated August 2, 1940 received by the Boardfrom the President of the Federal Reserve Bank of Atlanta,together with copies of all its enclosures, describing theresults of this investigation.

"We understand informally that the Securities andExchange Commission does not desire any further informa-tion in this connection and we are, accordingly, takingno further steps in the matter. A letter to this effectfrom the Commission, however, will be appreciated."

Approved unanimously, together witha letter to Mr. Parker, President of theFederal Reserve Bank of Atlanta, readingas follows:

"This refers to your letter of August 2, 1940, withenclosures, regarding the commissions charged by the TrustC°mPany of Georgia in connection with the purchase andSale of securities for customers.

"For your information, copies of your letter and itsenclosures have been furnished to the Securities and Ex-change Commission and we have received informal advicethat the information furnished is satisfactory and that20t1ting further is desired by the Commission from the,l_c'oard of Governors. We anticipate that this advice may°e confirmed by letter and, if so, we will be glad toadvise you."

Letter to Mr. F. W. Larson, National Secretary of the American

111`Ititute of Banking, reading as follows:

"This refers to your letter of August 8, enclosinga COpy of a specimen table showing the number of bank


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"officers and employees in Alabama and Colorado, as com-piled from data recently furnished you by the Board ofGovernors and other agencies.

"There is no objection from the Board's standpointto your publishing these statistics in the form of thestatement enclosed with your letter. It is noted, how-ever, that in the column headed 'Total for cities of10,000 population or over' the statement shows, by coun-ties, not only the number of bank officers and employees31-n each city of that size but also, against the captionOthers', the aggregate number of bank officers and em-

Ployees in places with a population of less than 10,000.apparent contradiction of terms may lead to some

confusion. One way of avoiding possible confusion wouldbe to eliminate the caption 'Others' and the figures shownapinst that caption and to give merely the total for eachCity with a population of 10,000 or over and the total foreach county. This suggestion is, of course, offered merelyfor your consideration."


Memorandum dated August 12, 1940, from Mr. Vest, Assistant

Goneral Counsel, recommending that there be published in the September

Of the Federal Reserve Bulletin statements in the form attached

to 4.,eraemorandum with respect to the following subjects:

Legislation Prohibiting Possession ofProperty Stolen from a Bank;

Executive Order Prohibiting Dealings inCertain Foreign Securities; and

General Licenses Issued by the Secretaryof the Treasury.



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Thereupon the meeting adjourned.

Secretary.


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