19440419_Minutes.pdf

621.

A meeting of the Board of Governors of the Federal Reserve

Smem was held in Washington on Wednesday, April 19, 1944, at 10:30a.m.

PaSENT: Mr. Eccles, ChairmanMr. SzymczakMr. McKeeMr. DraperMr. Evans

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-

after referred to was taken by the Board:

The minutes of the meetings of the Board of Governors of the

Re serve System held on April 18, 1944, were approved unani-Mously.

c

tionsof

membership numbered 1 to 6 contained in the Board's Regulationand the

following special condition, the Board approves the bank's1313licat'lon for membership in the Federal Reserve System and for the

Letter to the board of directors of the "North Shore Bank

°mPanY", Oyster Bay, New York, stating that, subject to condi-

413Proor.late amount of stock in the Federal Reserve Bank of New York:

”7.)/1-or to admission to membership, such bank, ifit has not already done so, shall charge off orotherwise eliminate estimated losses of 1'639 asshown in the report of examination of such bankas of March 20, 1944, made by an examiner for theFederal Reserve Bank of New York."

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

N. y."

bershi

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Approved unanimously, together witha letter to Mr. Sproul, President of theFederal Reserve Bank of New York, readingas follows:

"The Board of Governors of the Federal Reserve Sys-tem approves the application of the 'North Shore Bank i

Trust Company', Oyster Bay, New York, for membership nthe Federal Reserve System, subject to the conditions pre-scribed in the enclosed letter which you are requested toforward to the Board of Directors of the institution. Twoeoples iof such letter are also enclosed, one of which sfor your files and the other of which you are requested toforward. to the Superintendent of Banks for the State ofNew York, for his information.

"Standard condition of membership numbered 6 has beenPrescribed in order that its provisions may be invoked atany time in the future if necessary, but as in other casescald in accordance with the general authorization previouslyF..1 anted by the Board, you are authorized to waive compliance9-:1 the condition until further notice insofar as the con-dition applies to funds which are given statutory preferencein the State of New :fork.ba I"It is assumed that you will follow the matter of the

and the into conformity with the provisions of lawregulations the savings account mentioned

examination for membership."n page 16 of th

Letter to the board of directors of "The Peoples Bank of Johnstown,

) Johnstown, New York, stating that, subject to conditions of mem-

13 numbered 1 to 6 contained in the Board's Regulation H and the'-'-ng special condition, the Board approves the bank's applicationfor me

mbershiP in the Federal Reserve System and for the appropriatee'111°1-1rit of

stock in the Federal Reserve Bank of New York:

Prior to admission to membership, such bank, ifit has not already done so, shall set up on itsbooks a special reserve of not less than 7,000,which reserve shall not be included in the bank'scapital accounts in reports of condition, to cover


4/19/44-3-

"the judgment debt classified as estimated loss inthe report of examination of such bank as of larch14, 1944, made by an examiner for the Federal Re-serve Bank of New York."

Approved unanimously, together witha letter to Mr. Sproul, President of theFederal Reserve Bank of New York, readingas follows:

623

"The Board of Governors of the Federal Reserve Sys-tem approves the application of 'The Peoples Bank of Johns-town,

N. Y.', Johnstown, New York, for membership in theFederal Reserve System, subject to the conditions prescribedin the enclosed letter which you are requested to forward tothe Board of Directors of the institution. Two copies ofSuch letter are also enclosed, one of which is for yourriles and the other of which you are requested to forwardto the Superintendent of Banks for the State of New York,or his information.

"Standard condition of membership numbered 6 has beenPrescribed in order that its provisions may be invoked atany time in the future if necessary, but as in other casesand in accordance with the general authorization previouslyfi?mnted by the Board, you are authorized to waive compliancejt1.1 the condition until further notice insofar as the con-

applies to funds which are given statutory preferenceln the State of New York."

Letter to the board of directors of the "Hanna State & Savings

Bank"' Hanna, Zyoming, stating that, subject to conditions of membership

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

the bank's application for membership in the Federal Reserve System andfc3r the appropriate amount of stock in the Federal Reserve Bank of

41sas City.

(/f Atla hta, reading as follows:

. Approved unanimously, for transmis-ion through the Federal Reserve Bank ofKansas City.

Letter to Mr. Clark, Vice President of the Federal Reserve Bank


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"This refers to your letter of Larch 28, 1944, en-closing a letter which you received from Mr. J. W. Shands,President of the Atlantic Trust Company, Jacksonville,Florida, in which he stated that the trust company hasretired all of its outstanding indebtedness and has onhand a material amount of cash, 20,000 of which it vlouldlike to apply to the redemption of a like amount of itsper cent cumulative preferred stock at par.

"A comparison of the current balance sheet of theAtlantic Trust Company with that submitted with its pre-Ylc)us proposal for retirement of preferred stock reflects1-111Tirovement in its financial position. Valile dividendspaid by several of the subsidiary banks appear to berather liberal in view of their low capital positions,there is no indication that rates were increased in re-cent

in order to place the holding companyin funds with which to liquidate its indebtednessor retire its preferred stock.tL ."In view of the circumstances outlined above, and

information and recommendations contained in your-Letter, the Board will interpose no objection to theProposed retirement of preferred stock by the AtlanticIrust Company ii

Approved unanimously.

fetter to "The First National Bank of Jackson", Jackson, Tennessee,reading as follows:

"The Board of Governors of the Federal Reserve tem Sys-h,n ..1.. c,.. given consideration to your supplemental applica-eretofore

,n for fiduciary powers, and, in addition to the authoritygranted to act as trustee, grants you authority1,4) act, when not in contravention of State or local law,as executor administrator, registrar of stocks and bonds,ta:rdian of estates, assignee, receiver, committee of es-

Which or lunatics, or in any other fiduciary capacity in

which ate " -!-ch State banks, trust companies or other corporations

ted into competition tith national banks are per-theto act under the laws of the State of Tennessee,

exereise of all such rights to be subject to the pro-of the Federal Reserve Act and the regulations


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"of the Board of Governors of the Federal Reserve System.., "This letter will be your authority to exercise the

f(111ciary Dowers granted by the Board pending the prepara-tion of a formal certificate covering such authority, whichwill be forwarded to you in due course."

Approved unanimously.

Letter to the Presidents of all the Federal Reserve Banks, read-ing as follows:

. "Referring to the Board's letter of January 6, 19L4,th regard to the question of taxability of the Board'sbuilding by the District of Columbia, we have now been ad-yised that the boards of directors of all Federal ReserveBanks have taken action authorizing the execution of the1-1',-sclaimer enclosed with our previous letter. Some of theReserve Banks have predicated their action on the conditionthat the disclaimer- be approved by the Board of Governors.The disclaimer has been approved by the Board and, accord-

111g1Y, the master copy of the disclaimer is being transmittedto the Federal Reserve Bank of Boston, with the request that114t be executed and forwarded to the Federal Reserve Bank ofNew York. It is requested that each Federal Reserve Bankuu, when it receives the master copy, execute it andforward. it to the next Reserve Bank in numerical order,12°t1fYing the Board that it has done so. 1when it has beenexecuted by all the banks, of course, it should be returnedto the Board of Governors.yaour "If the execution clause or form of acknowledgment for

as set forth in the master copy, should be in-;roorite,azither because the persons named are not to

other reason, it will be appreciated if youthat We

the document to us before execution, in orderat 1r may correct it and return it to you.. "There is attached hereto a memorandum of certainPoints which should be borne in mind in connection withi? execution of the disclaimer. It will be appreciated: You will bring this memorandum to the attention of

70h uE Counsel before the document is executed and ask thate be present at the execution of the disclaimer to seethat the technicalities of the matter are met. If any


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11questi0n should arise with respect to the matter, it issuggested that you or your Counsel get in touch with theBoard by telephone or telegraph."

Approved unanimously, together withthe following letter to Mr. Paddock, Pres-ident of the Federal Reserve Bank of Boston:

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"Reference is made to the circular letter to the Pres-idents of all Federal Reserve Banks of even date regardingthe procedure to be followed in the execution of the masterCopy of the disclaimer as a method of settling the question0,.1 the taxability of the Board's lots and building inv,ashington. In connection with such letter, there is en-Closed herewith the master copy of such disclaimer and,eater it has been executed at your Bank, it will be ap-'related if you will forward it to the Federal Reserve,ank of New and advise the Board of the action thusuaken 1.)I--y your Bank."

Thereupon the meeting adjourned.

CASec/11.24y2r tary.

Chairman.


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19440419_Minutes.pdf