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A meeting of the Board of Governors of the Federal Reserve

System was held in Washington on Monday, December 8, 1941, at 12:30

P.m.

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

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-atter r

eferred to was taken by the Board:

The minutes of the meeting of the Board of Governors of theecleral Reserve System held on December 6, 1941,unani-were approvedraousizr.

tank

Letter to Mr. Clark, Vice President of the Federal Reserve°f Atlanta,

reading as follows:

nTt1_, "In

accordance with the request contained in your

ofrer of

December 2, 1941, the Board approves the appoint-Joseph Edward Cameron, at present an assistant ex-la ner, as an examiner for the Federal Reserve Bank of At-, ri a.1942,

If the appointment is not made effective on Januaryas planned, please advise us."

Approved unanimously.

Letter to the board of directors of the "Rising Sun State Bank",--g 811n, Indiana, statinE that, subject to conditions of membership111111 red 1 to 6

contained in the Board's Regulation H, the Board approvesthe bank's

application for membership in the Federal Reserve System

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and for the appropriate amount of stock in the Federal Reserve Bank ofChicago.

()ed ell, Iowa

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

"The Board of Governors of the Federal Reserve Sys- f

Rising approves the application of the 'Rising Sun State Bank"ising Sun, Indiana, for membership in the Federal ReserveSYstem,

subject to the conditions prescribed in the en-closed letter which you are requested to forward to theBoard of Directors of the institution. Two copies of suchletter are also enclosed, one of which is for your files?-nd the other of which you are requested to forward tott'llis Director, Department of Financial Institutions, fore State of Indiana for his information.tru :Since it is understood that in the State of Indianam funds deposited in the banking department of a bank1;1'0 preferred claims in the event of liquidation of theYou are authorized, in accordance with the generalc Zation Previously granted by the Board, to waiveflaligrl?1 ,73tttel.1 condition of membership numbered 6 until

that "The report of examination for membership indicatesfe_ as result of a speculative policy the bank has suf-anicisd severe losses in the past in its securities account,tt., that the account still contains a substantial propor-14 of defaulted and other sub-standard issues. The re-amorjeflects also the need for a policy of requiringbee, lzation on real estate loans. The application haswil approved With the expectation that the Reserve Bankanoe!°110w the situation closely and see that the assur-and Zhwith respect to investment policy are carried outSo

admin*

at, as LT:Tbez"bank, the institution's affairs are

Letterto the board of directors of the "City State Bank",

be ' Stating that, subject to conditions of membership num,-l'ed 1 to 3 contained in the Board's Regulation H and the followingaPecini

condi.be 5L .

Lon, the Board approves the bank's application for mem-P ln the

Federal Reserve System and for the appropriate amount

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12/8/41

of

48 t°110Ws.

stock

"4.

-3-

in the Federal Reserve Bank of Chicago:

Prior to admission to membership, such bank, if ithas not already done so, shall charge off or other-wise eliminate estimated losses of 2,238.50, asshown in the report of examination of such bank asof October 13, 1941, made by an examiner for theFederal Reserve Bank of Chicago."

Approved unanimously for transmis-sion through the Federal Reserve Bank ofChicago.

Telegram to the Presidents of all Federal Reserve Banks, read-as

follows:

"Reg. W-114.to a farmer beforeber 1 on any termsOn 9(f) had beengranted."

Instalment sale or loan credit grantedDecember 1 may be revised after Decem-which would have been permitted if sec-in effect when the credit was originally

Letter

Approved unanimously.

to the Presidents of all Federal Reserve Banks, reading

pede At the recent Fiscal Agency Conference held at the

Znral Reserve Bank of Atlanta, the Reserve Bank repre-

1atives were requested to furnish the Treasury withr suggestions and comments with respect to a number. Qopics

after returning to their respective Banks. It*IXii_be appreciated if you will have your representativesletZne

Conference furnish the Board with copies of allto sieg :4111:zosr.anda forwarded to the Treasury in response

plc,

rs "Some of the Federal Reserve Banks had a senior em-tie in the Fiscal Agency Department accompany the of-Atl,r in charge of that Department when he attended thea erta

Conference. This policy seems to the Board to bewho !ci °Ile, particularly since it gives senior employeest- prop prospects for further advancement an oppor-

Y get a broader viewpoint of System problems

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"which relate to their particular assignments.. "The Board will appreciate being advised of allFiscal Agency and allied matters of importance taken upwith the Treasury by the Federal Reserve Banks and bythe Treasury with the Federal Reserve Banks.

"In order to facilitate closer relations between .the Treasury, the Board and the Federal Reserve Banks Inthis field, the Board is arranging for a conference withthe Treasury on this subject and will advise you of theOutcome of the conference. In the meantime, your courtesy..11 keeping

.us informed in respect to these matters willDe

appreciated "

Approved unanimously.

Thereupon the meeting adjourned.

.e( 0-4114 Secretary.

Chairman.

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