19400118_Minutes.pdf

A meeting of the Board of Governors of the Federal Reserve

SYsteat washeld in Washington on Thursday, January 18, 1940, at 3:00

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

Mr. Morrill, SecretaryMr. Carpenter, Assistant SecretaryMr. Clayton, Assistant to the ChairmanMr. Thurston, Special Assistant to the

ChairmanMr. Wyatt, General CounselMr. Paulger, Chief of the Division of

ExaminationsMr. Dreibelbis, Assistant General Counsel

Messrs. Eccles, McKee and Morrill reported on the discussion

Meeting at the Treasury this morning with respect to the Bank

°t knerica National Trust & Savings

t"lie, at which Messrs

147; Zdward H. Foley,

inether's of his staff;

ti4d4raes A. Treanor,

s'40n, of the Securities

CotiPtroller of the CurrencY; B.

C4rl'ellelr; W. P. Folger,

elIELtIttulti of the FederalCohen,

Geteral Counsel,

Association, San Francisco, Call-

Daniel W. Bell, Under

90

Secretary of the Treas-

Jr., General Counsel for the Treasury, and two

Jerome Frank, Chairman, Chester T. Lane, Counsel,

Assistant Director of the Trading and Exchange

and

C.

Exchange COMM1 S sion,

Upham,

Preston Delano,

Deputy Comptroller of the

Chief National Bank Examiner; Leo T. Crowley,

Deposit Insurance Corporation; Benjamin V.

National Power Policy Cammittee, Tom K. Smith,

Sil'ecial Adviser to the TreasurYI and

the Comptroller of the Currency,

'Whitney Seymour, Special Counsel

were present. It was stated that

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

68 on the telephone. A memorandum of the discussion at the

1/18/40

91

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4ParentlY the reason for the meeting was to ask the Board again not

to lake an examination of the national bank and that after a long dis-

c/18810n the meeting concluded with an inquiry by Mr. McKee addressedto Mr.

Delano whether he would agree to have Messrs. Folger, Chief Na-

ti°11a1 13ank Examiner, Nichols, Chief of the Division of Examinations

" the Federal Deposit Insurance Corporation, and Paulger, Chief of

the Illision of Examinations of the Board of Governors, or anyone

else that the respective agencies might designate, get together and

0/1t a Program which the three agencies could agree upon and which

11°111d 1,-eve as its objective a solution of the problems which were the

atthject of controversy between the Camptroller's office and the bank.kr,

"lot e response was that he would consider the matter and callmex

rfkeeting at the Treasury has been placed in the Board's files.

Mr. McKee suggested that the Board give consideration to whomit

d have represent it at the conference with the representativesor the n_

-4mPtroller and the Federal Deposit Insurance Corporation inthe

'vent the Comptroller agreed to a conference for the purpose ofW15444

e program.

11)"ing e discussion of this suggestion, Mr. Wyatt, at Mr.—eta,

- request, informed the Board of another telephone converse-ti 414411

611 he had today with Mr. Collins, Counsel for the Bank of

A memorandum of this conversation is in the Board's files.


1/18/40

92

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The question was also raised for further consideration whether

Mr. Clark, First Vice President of the Federal Reserve Bank of San

?rezcisco, should be asked to came to Washington and in that connec-

ti°11** McKee said he talked over the telephone with Messrs. Day and

Clerk Yesterday afternoon and informed than that developments might

raelte it advisable for Mr. Clerk to came to Washington so that the in-

t°rMation11,14ch he had with respect to the circumstances surrounding

the Bank of America might be available to the Board, that both Messrs.

play —" v"1.(1 Clerk agreed that that would be advisable, and that Kr. Clerk

41d h,„would hold himself in readiness to came to Washington when re -

411"ted.

In connection with a discussion of the action that the Board

raight teir--8 on the request of the national bank that an examination of

'netitution be made by the Board, Chairman Eccles said that if the

l'°11ar agreed to the suggestion made at the meeting at the Trees-

111'Y tod.-Y, the Board might say to the national bank that an effort was

c°,1ipt

illade to work out a program and that the request for the examine-

"utlid be held in abeyance pending a determination whether a program

e°4id be

d-eveloped. He also said that, if the Comptroller of the Cur-rellelr di

d 11" agree to the suggestion, the Board might undertake to

out Iv311 na -rogran itself which it would endeavor to get the Federal

415"it n„I---,rence Corporation to agree upon and, if that were done,

11114te the representatives of the national bank to come to Washington


1/18/40-4-

atd advise them informally that the proposed program would be the

11"is of the conditions upon which the Board would be willing to admit

the bank to membership in the Federal Reserve System and that if the

11"k were not willing to accept the program the Board would institute

131'"eacling5 to cancel the voting permit issued by it to Transamerica

Corporation.

At this point Mr. McKee received word that the Comptroller

"the Currency desired to talk to him on the telephone. He left the

r°°111 to take the call and upon his return stated that the Comptroller

had said that he had not reached a

"eitee but that they were considering it at the Treasury and would

hold a conference on it in the morning.

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decision on the suggestion made by

It was agreed unanimously that in theevent the Comptroller of the Currency agreedto the suggested conference, Messrs. Ecclesand McKee would determine the members ofthe Board's staff who would attend.

There was then presented

tl*°111 1111‘• Goldenwei ser,ti-sties,

that beg:11111111g January

submitting, at

who waretclr Work in

connectionhY the

staff for the hearingsth Board for an additional

a memorandum dated January 18, 1940,

Director of the Division of Research and Sta-

the request of Mr. Ransom, a recammendation

18, 1940, Donald B. Woodward and Robert B.

employed by the Board on a temporary basis last year

With the preparation of the special studies

on the Wagner resolution, be employed

period not to exceed fourteen calendar


94

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Ysd4ring the year, on the same terms as the employment in 1939,

tol"he Purpose of reviewing the studies which are now nearing cam-

Pleti011. The memorandum stated that the fourteen calendar days would

llot necessarily be consecutive.

The recommendation was approvedunanimously.

At this point Messrs. Thurston, Wyatt, Paulger and Dreibelbis

left th

latters

e meeting and the action stated with respect to each of the

hereinafter referred to was then taken by the Board:

The ninutes of the meeting of the Board of Governors of the

1'641'81 Reserve System held on January 17, 1940, were approved unani-kotlay,

Memorandwn dated January 12, 1940, from Mr. Morrill recan-

that, for the reason stated in the memorandum, Stewart Thorn,

1511ga) be Promoted to the position of clerk, with salary at the rate

°I' 41,360Per annum, effective immediately.

Approved unanimously.

Memorandum dated January 16, 1940, from Mr. Paulger, Chiefthe

1ISiO of Examinations, sdhmitting the resignation of Joseph

el'°84. as a Federal Reserve examiner, to be effective as of February15, 1940

te

, and recommending that the resignation be accepted as of thath .

toll


Letter to the Presidents of all Federal Reserve banks, reading

owe:


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"The conference of representatives of the bank exam-ination departments of the Federal Reserve banks referredto in the Board's letter of December 22, 1939, R-584, willbe held in the Board's offices in Washington beginningWednesday, February 7, at 10:00 A.M. It is anticipatedthat the conference will last three days.

"It is suggested that each Reserve bank be repre-sented at the conference by the officer in charge of thedepartment and the chief examiner or a senior examiner.45r additional representatives whom the Reserve bank de-

to send will also be welcome. Special reference11.8 not made to the trust examiners, since a separate con-

of trust examiners will not be held at this time,nd neither is it planned to devote much of the time ofthe

conference to the work of trust examinations."A program for the conference is being prepared,bas.A

e. Ti the suggestions received from the Federal Re-:erve banks and from the Board's staff. Copies will be144111"niehed to the Reserve banks within a short time by1', Pillager.Alia "Since the days of the conference will be rather

it is suggested that representatives of the moreu distant Reserve banks who have various matters to take('). with the Board's staff may wish to arrive a day earlyBoat° stay after the conference. The members of thema,fdis staff, of course, will be glad to discuss such"ers at any available opportunity."


Letter to Mr. Walter Lichtenstein, Secretary of the FederalAdvi

.131'5r C°uncii, reading as follows:

J-4

,, a ”Receipt is acknowledged of your letters of Januarynd 12 with reference to the publication in the 1940

zendatireport of the Board of Governors of the recam-co_ ons and resolutions adopted by the iederal Advisory

'41acil during 1939.resol"It is proposed to publish the recommendations andxi --Ilti°ns in accordance with the understanding set forthYour letter of January 12."


Ille°rendum dated January 15, 1940, addressed to Chairman Eccles


96

br mr. Davis,

8

7-

ating that if the Federal Reserve Bulletin is to be

improved it will be necessary to center responsibility

editorial supervision on some one person and recammending, in

ecommendat on Chairman Eccles concurred, that Elliott Thurston,

Assistant to the Chairman, be given such responsibility.


Thereupon the meeting adjourned.


Documents

19400118_Minutes.pdf