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A meeting of the Board of Governors of the Federal Reserve Sys—

temwas held in Washington on Saturday, June 6, 1966) at 11:60 a. m.

PRESENT: Mr. BroderickMr. McKee

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

Consideration was given to each of the matters hereinafter re-

ferred to and the action stated with respect thereto was taken by the

Board.:

Memorandum dated June 5, 1936, from Mr. Morrill recommending

the temporary appointment, for a period not exceeding three months, of

Mr' Joseph S. Crowder as a file clerk in the Office of the Secretary,

with salary at the rate of $70.00 per month, effective as of the date

11P°11 which he enters upon the performance of his duties.

Approved unanimously.

Letter to the board of directors of "The Commercial Bank &

St Company of Ocala'', Ocala, Florida, stating that, subject to the

e"ditions of membership numbered 1 to 6 contained in the Board's Reg-

11-10

n H, and the following special condition, the Board approved thebank,

3 application for membership in the Federal Reserve System and

tor the appropriate amount of stock in the Federal Reserve Bank of

Atlarit

Such bank shall make adequate provision for deprecia-tion in its banking house and furniture and fixtures."

Approved unanimously, together with aletter to Mr. Martin) Federal Reserve Agentat the Federal Reserve Bank of Atlanta,reading as follows:

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"The Board of Governors of the Federal Reserve Systemapproves the application of 'The Commercial Bank & TrustCompany of Ocala', Ocala, Florida, for membership in theFederal Reserve System, subject to the conditions prescribedin the inclosed letter which you are requested to forwardto the board of directors of the institution. Two copiesof such letter are also inclosed, one of which is for yourfiles and the other of which you are requested to forwardto the State Comptroller of the State of Florida for hisinformation.. "The Executive Committee of your bank has called atten-tion to a recent statute of the State of Florida and a rulingOf the State banking authorities, from which it appears thatit is not necessary for a State bank to deposit collateralwith its trust department for the protection of trust fundsdeposited in its banking department to the extent that suchtrust funds are covered by Federal deposit insurance, andhas suggested that, as a matter of policy, the Board maywish to modify its standard condition of membership numbered6 accordingly. The Board recently gave consideration to arequest from a member State bank in another State that therequirements of this condition of membership be waived tothe extent that trust funds deposited in the banking depart-ment of that institution are insured under the provisionsof section 12(b) of the Federal Reserve Act, and has reachedthe conclusion that the request should not be granted atthis time. However, this entire matter is being given furthercareful consideration by the Board.

"In view of the fact that the examiner has reportedthat the estimated losses shown in the report of examinationwere charged off during the examination, the usual condi-tion of membership regarding the elimination of estimatedlosses has not been prescribed."

Letter to The George A. Fuller Company, Washington, D. C., read-

inpas follows:

"In accordance with the provisions of Article 36 of theconstruction contract, you are hereby directed to cause thework covered by Allowance 'E', Lighting Fixtures, in Section1 of the Specifications, page S1-161 to be done by Edwd. F.Caldwell & Co., Inc., 36 West 15th Street, New York, New York,for the sum of eighteen thousand one hundred eighty eightand no/100 ($18,188.00) Dollars.

"You should, of course, make certain that all of thework covered by this allowance, as provided in the contract

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Assistant Secretary.

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documents, is covered by the contract which you enter intoWith Edwd. F. Caldwell & Co., Inc.

"In view of the fact that said sum of $18,188.00 is lessthan i19,148.00, the amount named in the Specifications asthe allowance for this work, the difference, namely, Ninehundred sixty and no/100 ($960.00) Dollars, will be deductedin making the adjustment in the contract sum resulting fromthe differences between the amounts of the allowances namedin the Specifications and the amounts for which the Boardmay direct the work to be done, as provided in said Article63 and in paragraph 80 of Section 1 of the Specifications,Page S1-12.

"A copy of the bid submitted by Edwd. F. Caldwell & Co.,Inc., dated May 14, 1936) together with a copy of a supple-mental letter dated June 3, 1936, is inclosed.

"It will be noted that the bid submitted by Edwd. F.Caldwell & Co., Inc., contains the statement that 'It is under-stood that we are not in any way liable for damages or delaysdue to strikes or the elements, or occurrences beyond our con-trol, and that any contract based upon this estimate is subjectto any such delays'. Nevertheless, it is expected that Edwd F.Caldwell & Co., Inc., will enter into a contract with you whichdoes not contain any such provision as that quoted and thatthe contract will be in all respects consistent with the pro-visions of the contract for the construction of the buildingbetween your company and the Board."

APProved:

Approved unanimously, the sub-con-tractor referred to having been approved bythe Board's architect, the Board's superin-tendent of construction and by Mr. Miller.

Thereupon the meeting a 'ourned._

Member.

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