19341030_1100a_minutes.pdf

3325

ton

A meeting of the Federal Reserve Board was held in Washing-

on Tuesday, October 30, 1934, at 11:00 a. m.

PRESENT: Mr. Thomas, Vice GovernorMr. HamlinMr. MillerMr. JamesMr. Szymczak

Mr. Morrill, SecretaryMr. Carpenter, Assistant Secretary

The minutes of the meetings of the Federal Reserve Board held

Ohl October 10, 12 (two meetings), and 18 (two meetings), were approved.

The minutes of the meetings of the Executive committee of

the Federal Reserve Board held on October 11, 15 (two meetings), and

171 1964, were approved and the actions recorded therein were ratified

11138/Ainously.

The Board then considered and acted upon the following mat-tel.%

Memorandum dated October 22, 1954, from the Committee on Sal-

"-es and Expenditures, submitting a

tt°111

Chicago,Preston, Deputy Governor of

Which requested approval of

letter dated October 16, 1934,

the Federal Reserve Bank of

a change in the personnel clas-

"cation plan of the bank to provide for the new positions of

sletant to general counsel" and "secretary" in the legal department.The ..,„

emorandum stated that the committee had reviewed the proposedCluth,"6" and recommended that they be approved. The recommendation

Wasapproved by five members of the Board on October 29, 1934.

Approved.

Has_

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

10/30/34 -2-

3326

Eemorandum dated October 24, 1934, from the Committee on

Salaries and Expenditures, submitting a letter dated October 10,

1934, from Lr. Day, Deputy Governor of the Federal Reserve Bank of

"11 Francisco, which requested approval of changes in the personnel

classification plan of the bank to provide for twenty-eight new posi-

ticns in various departments of the head office, Los Angeles, Port-

land, and Spokane branches, the discontinuance of fifteen positions

it various departments of the head office, Los Angeles, Salt Lake

City, and Spokane branches, the revision of the description of work

alld qualifications required for a number of positions at the head

office and branches, and changes in the titles of several depart-

1114111t8, The memorandum stated that the committee had reviewed the

131.cpcsed changes and recommended that they be approved. The recom-

Inendation was approved by five members of the Board on October 29,

1934.

the Board, to L. O'Connor, Comptroller of the Currency, reading as

tcllowe i

Approved.

Letter dated October 29, 1934, approved by five members of

"In accordance with yourxecommendation, the Federal Re-serve Board approves a reduction in the common capital stockOf 'The Second National Beni?. of Ashland', Ashland, Kentucky,from , A.'*00,000 to $300,000, pursuant to a plan which providesthat the bank's capital shall be increased by ,g';200,000 of pre-

ferred stock to be sold to the Reconstruction Finance Corpora-tion, and that the released capital shall be used to eliminate5:!. corresponding mount of the least desirable assets in the_uank, including all estimated losses, all as set forth in your

Inemorandum of October 17, 1954."


332710/304/34 -3-

Letter dated October 29, 1934, approved by four members of

the Board, to Mr. Case, Federal Reserve Agent at the Federal Reserve

Bank of Lew York, reading as follows:

"This refers to 1.r. Downs' letter dated October 20, 1934,with regard to the issuance of limited voting permits to 'FirstSecurities Corporation of Syracuse', and 'First Trust DepositCompany', both of Syracuse, Ilew York.

"You are instructed not to issue the limited voting per-mits authorized in the Board's Ancigar telegram dated October1, 1934, on the basis of the agreements executed by the appli-cants on October 19, 1934, which agreements 'were inclosed inLr. Downs' letter.

"You are, however, authorised to issue such limited votingPermits, provided tho applicants execute the agreemonts requiredby the Board's Ancigar telegrams dated October 1, 1934. Theagreement to be executed by First Securities Corporation ofSyracuse may contain the following proviso:

'provided, however, that in respect to any understand-ings or agreements herein contained on the part of theundersigned relating to said subsidiary banks the same shall onlybe deemed to require it to do or cause to be done by suchsubsidiary banks such things as it has the power to do orcause to be done, either as a holding company affiliatethereof or otherwise, and also that, in respect to any sub-sidiary banks which are national banks, the undersignedshall not be required pursuant thereto to take any actionthat shall be objected to by the Comptroller of the Currency,the Reconstruction Finance Corporation or other duly author-ized federal supervisory agencies, nor, in respect to any ofsaid subsidiary banks which are State banks, any action thatshall be objected to by the Superintendent of Banks of theState of New York or the Reconstruction Finance Corporation.'

The agreement to be executed by First Trust a Deposit Com-PallY may contain the following proviso:

provided, however, that the undersigned claims that it isnot a holding company affiliate of any of the subsidiarybanks hereinbefore referred to, and that in respect to anyUnderstandings or agreements herein contained on its partrelating to said subsidiary banks the same shall only bedeemed to require it to do or cause to be done by such sub-5.diary banks such things as it has the power to do or causeto be done, and also that, in respect to any subsidiary banksWhich are national banks, the undersigned shall not be re-quired pursuant thereto to take any action that shall beobjected to by the Comptroller of the Currency, the


10/30/54-4-

"Reconstruction Finance Corporation or other duly author-ized federal supervisory agencies, nor, in respect to anyof said subsidiary banks which are State banks, any actionthat shall be objected to by the Superintendent of Banks ofthe State of New York or the Reconstruction Finance Corpora-tion.'"The only effect of the amendment to the provisos is to

change the provision that the applicants shall not be requiredto take any action which shall not have the consent or approvalOf the supervisory authorities to a provision that the appli-cants shall not be required to take any action that shill beObjected to by the supervisory authorities. It is believedthat the revised form of the provisos contains the substanceof the amendments suggested by the applicants."

Approved.


the Board, to the Federal reserve agents at pil Federal reserve banks

ecept Boston and Philadelphia, reading as follows:

"Replies have been received from the Federal Reserveagents to the Board's letter of August 25 (X-7992) on the abovesubject (Issuance of Federal Reserve notes at Branches of Fed-eral Reserve banks) and, after careful consideration of suchreplies, the Board is of the opinion that no Federal reservenotes should be issued, except upon specific authority, in eachease, of the Federal reserve agent or an assistant Federal re-serve agent at the Head Office.. "It will be appreciated, therefore, if instructions to'11.18 effect are issued to all persons designated to act forYou in the issuance of Federal reserve notes at the Head Officeand at each branch of the Federal reserve bank."

Approved.

Letter dated October 29, 19b41 approved by five members ofthe

Board to Honorable Louis Ludlow, House of Representatives, Wash-

ington D. C., reading as follows:

"Referring to your letter of October 18, advances approvedthby e Federal Reserve banks for the purpose of supplying work-

ing capital to industrial and commercial establishments, to-

tether with commitments to make such advances, as authorizedY the Act of June 19, 1954, numbered 321 and totaled


3329

10/30/34_ -5...

%13,047,000 up to October 17, 1934. Of this total ,;.1,632,000represented advances and 02,182,000 commitments actually made,i;5,739,000 advances and commitments that had been approved un-conditionally by the Federal Reserve banks but have not yetbeen consummated, and the balance applications uithdraun afterapproval. In addition 133 industrial advances, totaling9,144,000 had been approved by the Federal Reserve banks sub-ject to fulfillment of certain conditions. Of the industrialadvances made v63,500 represented advances to borrowers in thestate of Indiana.

"Az you know, at the present time member banks have about1,725,000,000 of excess reserves with the Federal Reservebanks and, consequently, there is little need for them to bor-row from the Federal Reserve banks. The total amount of borrow-ings from the Federal Reserve banks of member banks in thestate of Indiana amounted to'015,000 on September 29, thelatest date for which figures by states are available. Thosefigures are, of course, exclusive of industrial advances underSection 13b of the Federal Reserve Act."

Approved.

Letter dated October 29, 1934, approved by four members of

the Board, to 11-. John Enrietto, Washington, D. C., reading as fol-

10y13

"In accordance with your oral request which has been con-firmed by a letter dated October 27, 1934, from Ia.. 'hr. L.Andrews, Assistant Secretary of the Transamerica Corporation,there are inclosed herewith two certificates furnishing informa-tion with regard to the dates on which the applications of TheBank of America and the Commercial Exchange Bank of Hew York,both of New York City, made on behalf of The Bank of AmericaLational Association and the Commercial Exchange National Bankin liew York, both of Hew York City, respectively, for permis-sion to exercise fiduciary powers, were received by the FederalReserve Agent at the Federal Reserve Bank of New York, thedates on which the board of directors of that bank made itsrecommendations with respect thereto, and the dates upon whichtuese applications were forwarded to and acted upon by theFederal Reserve Board.

Andrews' letter requested information as to the dateof the Federal Reserve Agent's recommendation in each of theseea-3e5. However, since in these cases the recommendation wasMade by the board of directors of the Federal Reserve Bankrather than by the Federal Reserve Agent, the dates of suchroeommendations are given in the inclosed certificates. You


3330

104/30/34 -6-

"mill also observe that the certificates do not include infor-mation as to the nature of the recommendation of the board ofdirectors of the Federal Reserve Bank of New York. The Boardconsiders information of this kind as confidential in itscharacter and it is not the Board's practice to disclose suchinformation. It may also be stated that it is not the Board'susual practice to furnish information regarding matters betweenthe Board and the Federal reserve agents and the Federal re-serve banks, such as the dates of colamunications between theBoard and such agents and banks, but such information is beingfurnished in this instance on the basis of your oral advicethat it is important to you in connection with the proper con-struction of an agreement involving the dates requested andinvolving the banks above referred to which you represent.The action in this instance should not be considered a prece-dent as to what action it would take on any other requests forsimilar information."

Approved.

Letters dated October 29, 1934, approved by five members of

the Board, to Li-. Curtiss, Federal Reserve Agent at the Federal Re-

8erv0 Bank of Boston, and la-. Hoxton, Federal Reserve Agent at the

?ederal Reserve Bank of Richmond, stating that the Board has given

e0118ideration to the following applications for permits under the

Clayton Act, and that, upon the basis of the information before it,

te°13 that the issuance of the permits applied for would be incam-

Patible with the public interest. Each letter also requested the

Ilgent to communicate to the applicant the Board's position in the

blEttter, and to advise the Board promptly as to whether the applicant

(1e8ires to.submit any additional data, and, if not, as to what stepshe ,

eroposes to take in order to comply with the provisions of theC4Aon Act.

1::re William L. haywurd, for permission to serve at the sometime as a director of The Franklin attional Bank, Franklin,


3331

10/30/34 -7--

Massachusetts, and as a director and officer of The Blackstoneiational Bank of Uxbridr;e, Uxbridge, Massachusetts.

Ir. Grover C. Greer, for permission to serve at the same timeas a director of The First National Bank of Bel Air, Be? Air,Maryland, and as a director of The Harford Bank, Be? Air, :Lary-land.

Approved.


the Board, to an applicant for a permit under the Clayton Act, ad-

of approval of his application as follows:

Mr. Geo. Wallace Smith, for permission to serve at the sametime as a director and officer of The Peninsula National Bankof Cedarhurst, Cedarhurst, New York, and as a director of TheLynbrook National Bank and Trust Company, Lynbrook, New York.

the

Approved, together with a letter, also datedOctober 29, 1934, and approved by five members ofthe Board, to Ir. Case, Federal Reserve Agent atthe Federal Reserve Bank of New York, suggestingthat he endeavor, in cooperation with the appropriatesupervisory authorities, to bring about a strengthen-ing of the capital structures of the banks referredto above and a correction of the matters criticizedby the examiner, and requesting that, when the agentsubmits his recommendations, as a result of his an-nual review of the permit, he report fully as to theprogress made in bringing about an improvement inthe condition of the banks.


Board, to Er. Stevens, Federal Reserve Agent at the Federal Re-

0 Bank of Chicago, reading as follows:

"2.eference is made to Assistant Federal Reserve AgentYoung's letter of October 5, 1934, inclosing a copy of a let-ter dated September 28, 1934, from the directors of The ThirdLational Bank of Rockford, Rockford, Illinois, submitting ad-ditional information relative to the application of 12:r. G. W.Ault, Kirkland, Illinois, for permission under the provisionsOf the Clayton Act to serve at the same time as a director ofThe Third National Bank of Rockford, Rockford, Illinois, and


632

10/30/34 -8-

"as a director and officer of the State Bank of Kirkland, Kirk-land, Illinois, which application was not approved by the Boardafter consideration on July 31, 1934, and on August 28, 1934.

"The Board has given consideration to the additional infor-mation submitted but still feels that the issuance of the permitapplied for would be incompatible with the public interest. Youare requested to advise the applicant accordingly.

"It is mated that the applicant has submitted his resigna-tion as a director of The Third Lational Bank of Rockford, Rock-ford, Illinois, but that his resignation apparently has not yetbeen accepted. In order that the files in this case may becomplete, please ascertain the effective date of Lir. Ault'sresignation and advise the Board when his relationships havebeen brought into conformity with the provisions of the ClaytonAct."

Approved.


the Board, to Lr. McClure, Federal Reserve Agent at the Federal Re-

"rile Bank of Kansas City, inclosing the folloviing Clayton Act permit,

arid requesting that the agent ascertain the status of the charges,

if anY, against the applicant as a result of possible violations of

the provisions of section 22(g) of the Federal Reserve Act, and stat-

that, in the event the case has been duly considered and closed

Without prosecution, the agent is authorized to release the permit

to the applicant, at the same time furnishing the Board with complete

information concerning the disposition made of the matter:

Li'. Ross R. Bayless, for permission to serve at the same time113 a director and officer of The First National Bank of Miami,

Oklahoma, as a director and officer of The First StateBank, Commerce, Oklahoma, and as a director of the First StateBank, Picher, Oklahoma.

Th,„'v letter also suggested that the agent endeavor, in cooperation

171:blithe appropriate supervisory authorities, to consummate the re-car) J

-4-1;allzation of the idami bank, to effect a further improvement in


3333

10/30/34 -o-

itS condition, and to bring about a correction of all of the condi-

tions vhich have given rise to the examiner's criticisms, and requested

that, when the agent submits his recommendation as a result of his

annual review of the permit, he report fully as to whether the appli-

cant has further violated any provisions of the law, as to the status

Of his loans in the banks involved, and as to the progress which has

been made in bringing about an improvament in the condition of the

L]iami bank.

Approved.


the Board, to L. Walsh, Federal Reserve Agent at the Federal Reserve

Bal* of Dallas, reading as follows:

"The Board has given further consideration to the applica-tion of Ia... Geo. L. Paxton, Sr., Abilene, Texas, for permissionunder the provisions of the Clayton Act to serve at the sametime as director and officer of The Citizens ilational Bank inAbilene, Abilene, Texas, and as a director of The Farmers andLer chants National Bank of Merkel, iderkel, Texas, and in viewOf the additional information submitted with your letter ofOctober 11, 1934, and the stated intention of 1..r. Paxton to at-tend regularly the directors' meetings of The Farmers and Ler-chants National Lank of Lerkel, has granted the permit. The°rIzinal and copies of the permit granted to Er. Paxton areflolosed for transmittal by you to the applicant and the two

Lillnks. There also is inclosed a copy of the permit for yourfiles.

"The Board requests that,' when you submit your recommenda-tion as a result of your annual review of this permit, youreport fully as to Er. Pax-bon's attendance at directors' neet-iflcs.”

Approved.

Letter dated October 29, 1934, approved by five members ofthe ard, to Mr. Walsh, Federal Reserve Agent at the Federal Reserve


3334

10/30/34 -10-

B8nk of Dallas, reading as follows:

"The Board has given further consideration to the applica-tion of Lr. George F. Rozelle, Dallas, Te:ms, for permissionunder the provisions of the Clayton Act to serve at the sametime as a director of the Alvord National Bank, Alvord, Texas,and as a director of the First State Bank, Arlington, Texas,and in view of the additional information submitted with yourletter of October 5, 1934 and the stated intention of Lir.Rozelle to improve his attendance at directors' meetings ofthe Alvord rational Bank, has granted the permit. The originaland copies of the permit granted to 1.r. Rozelle are inclosedfor transmittal by you to the applicant and the two banks.There also is inclosed a copy of the permit for your files.

"The Board requests that, when you submit your recommenda-tion as a result of your annual review of this permit, youreport fully as to Lr. Rozelle's attendance at directors' meet-ings."

Approved.


the Board, to the respective Federal reserve agents, inclosing the

f°11awing Clayton Act permits for transmittal to the applicants;

811C esting in each case that the agent advise the applicant that it

4 'with the expectation that he will improve his attendance at direc-

tor8' meetings that the permit has been granted; and requesting that,

11113 the agent submits his recommendation as a result of his annual

of the permit, he report fully as to the applicant's attendanceEtt d

irectors' meetings:

E. Thomas, for permission to serve at the same time asa director and officer of The Lake Crystal National Bank, LakeCrystal, annesota, and as a director of the State Bank ofVernon Center, Vernon Center, Idnnesota.

L. Clayton, for permission to serve at the same time asa director and officer of The First National Lank of Emory,lor:/, Texas, and as a director and officer of The Greenville

ilational Exchange Bank, Greenville, Texas.


3335

10/30/34 -11-

Ir. T. R. Coffield, for permission to serve at the same timeas a director and officer of The First National Bank of Bolide,Bowie, Texas, and as a director and officer of the Farmers Na-tional Bank of Newcastle, Newcastle, Texas.

Approved.


the Board, to applicants for permits under the Clayton Act, advising

°f aPproval of their applications as follows:

Lr. W. S. Corbin, for permission to serve at the same time asa director and officer of The First National Bank of Pocasset,Pocasset, Oklahoma, and as a director and officer of The Firstilational Bank of Eine°, Lanco, Oklahoma.

Li.. Chas. L. hale, for permission to serve at the same time asan employee of The First National Bank of Liami, Liami, Okla-homa, and as a director and officer of The First State Bank,Picher, Oklahoma.

Li's J. J. Perkins, for permission to serve at the same time asa director and officer of the Farmers National Bank of Newh-castle, Newcastle, Texas, and as a director of the City Nation-al Bank in 'achita Falls, Wichita Falls, Texas.

41:Toyed:

Approved.

Thereupon the meeting adjourned.

-6jVCIV4-,&.4, 4)01-AA-Leecretary.

Vice t_rovernor.


19341030_1100a_minutes.pdf

Documents

federal reserve board

federal reserve agent

federal reserve board

members ofthe board

committee onsalaries

spokane branches

approval of changes

head office