19341113_minutes.pdf

PRESENT: Er. Thomas, Vice GovernorEr. HamlinEr. MillerMr. James

The Committee acted upon the

Morrill, SecretaryCarpenter, Assistant Secretary

following matters:

MoMerandum dated November 9, 1934, from Mr. Paulger, Chief

recommending that Miss Beverly

employed temporarily since June 16, 1934, as

division, with salary at the rate of cP1.50 a

as a stenographer in the division,

of $1,500 per annum, subject to her passing

examination, and that in the event she does

physical examination she be continued on a

time as

3480

A meeting of the Executive Committee of the Federal ReserveBoard vas held in Washington on Tuesday, November 13, 1934, at 4:30

°f the Division of Examinations,

411thews, vho had been

stftographer in the

bo appointed permanently

Itith salary at the rate

ct satisfactory

physical33.t)t Pass a

satisfactorytersPorary

basis Until suchtilled by 4 Pe r0

stenographer.

1"°11rbleiribers of the Board on November

her position can be conveniently

The recommendation was approved

12, 1934.

Approved.

143111°randum dated November 12, 1934, from Mr. Noell, Assistant8"ret

EskIDloyear" ree°mmending that Eics Claire C. Atkins, who has beend t

e„orarily since July 2, 1934, as a stenographer in the.4.41.ottrealeter c'e

Examinations, with salary at the rate of 04.50 a day, bered to the

Secretary's office and appointed permanently as

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

11113/34 -2-

3481

aterlOCraphers with salary at the rate of 0,500 per annum, effeo-

t5" Noveniber 16, 1934, subject to her passing a satisfactory physical

exklnitiation. The recommendation was approved by four members of the

Board on November 12, 1034.

Approved.

Meraorandum dated November 8, 1934, from the Committee

klazies and Expenditures,

19341 from Mr. Newton,

411.4.3 which requested

11°8:4°4 Plan

°•lerkti

elerko

tlehief

clerk"

tiler4()rendtza stated

quAnges and recommended

of the b

submitting a

Chairman

approval

letter

on

dated November 5,

of the Federal Reserve Bank

of changes in the personnel

of At-

classi-

ank to provide for the new positions of "chief

service department, "clerk-bookkeeper" and "shipping

Federal Farm Idortgage Corporation department, and

in the Public Works Administration department. The

that the committee

that

ETProved by four members

in the

ill the

had reviewed the proposed

they be approved. The recommendation

of the Board on November 12, 1934.

Approved.

Letter dated November 12, 1934, approved by four members of*44)13

°Etrd, to

o York,

Case, Federal Reserve Agent at the Federal Reserve

reading as follows:

ber 2

,,volerence is made to the report of examination of Decem-the 6, 1933, of the 'Bank of Jamestown', Jamestown, New York,Bald ;112P1emental information submitted in connection therewith,York "u analysis of a report of examination made by the New

tate Banking Department as of June 2, 1934.atr

et0

. Although the capital position of the bank has been

(511 1v "lened through the sale of e1,300,000 capital debentures,the Reconstruction Finance Corporation purchased


3482

-3-

%13000,000, the analysis of the report of examination ofJune 2, 1934 reflects an unsatisfactory condition with an in-adequate capital structure to support deposit liabilities.After deducting estimated losses and depreciation in securi-ties amounting to ;1.,148,0u0, and after allowance for assets8,mounting to ;468,000 classified as doubtful, the bank had anet sound capital of c;;537,000 as compared with deposits ofQ10,554,000. It has been observed you have recommended tothe bank that an additional application be filed with theReconstruction Finance Corporation for the sale of capitaldebentures in the amount of ,,700,000. The hoard concurs in

conclusion thus expressed that the present net sound capi-al is inadequate to support the deposit liability of the bank.11

In your letter of January 25, 1934, you stated that itEtpPoared highly desirable that the capital structure at that104.1116 bc strengthened by not less than 2,000,000. On April

1934 you reported that the officers of the bank, together'4ith the D eputy Superintendent of the 1:ew York BankingDepart-

111,ellt had made strenuous efforts to have the capital structurethe bank strengthened by not less than that amount, but

flat after an extensive survey, the i'.econstruction Finance"Porat ion had concluded ,,,1,000,C00 was the maximum amount

Ch debenture s it would purchase, provided 300,000 were pur-

e,,, ed by local interests. Ihe board is not unmindful of therIlorts which have been made by the bank and the supervisingbl.l horities to provide an adequate amount of sound capital,Inlolt the inability of the management to obtain a commitment oftje than v1,000,000 from the Reconstruction Finance Corpora-tion at the time the bank's application was under considera-cal _,has not relieved it of the responsibility of maintainingandauequate rauio of sound capital to the bank's liabilities

board °r continuing its efforts to accomplish this result. The

is1:1feels that the introduction of additional capital funcsare lZhlY desirable and that unless the parties at interesttc:tzble to Provide such funds, application should be made4(1,.

-t ? Reconstruction Finance Corporation for the sale of an

h42ea"nal amount of debentures as you have suggested. It iszte,, _i:hat your efforts to induce the hank to take further1:14: to strenr;then its capital may yet be successful.tier,,e,keeP the hoard advised of developments in this connec-t() pr 'uld also as to what action has been taken by the bankciati°17ide for the elimination of estimated losses and depre-

H In in securities and to correct other criticized matters.- ,your e, of the fact that tho last examinaLion in which

Elcurearct t alner t

participated was made December 26, 1933, it isexErlin hR an erly examination to be conducted by yourbe a, or Participated in by them will be made, and it will'Predated if you will advise the 13oard of your plans in


34831v13/34 -4-

"this connection."Please forward, for the Board's files, copies of any

azeildments made to the bank's charter in connection with therecent adjustment of capital."

Approved.

Telegram to r. Sargent, Assistant Federal Reserve Agent

the Federal Reserve Bank of San Francisco, reading as follows:

"Your telegram November 8 re 'Cashmere Valley Bank',nere$ Washington. Section 9 of the Federal Reserve- Act as

t 'Led provides that for the purposes of membership the term1,eaPital stock' shall include the amount of outstandingal

notes and debentures legally issued by the bank and pur-chased by the Reconstruction Finance Corporation. Accordingly:'fa Board considers that the term capital stock as used in

ZI7lapard condition of membership numbered 10 regarding surplusIlZudes capital notes and debentures as described above as' 48 capital stock of all classes."

Letter to La-. O'Connor,4

r011ows

.mpproved.

Comptroller of the Currency, reading

ti "In accordance with Acting Comptroller Awalt's recommenda-the Federal Reserve Board approves a reduction in the

141.7"°n capital stock of 'The Citizens National Bank of East"eh Chunk', East Lauch Chunk, Pennsylvania, from 50,000 toNA5$000

pursuant to a plan which provides that the bank'sle):13"41 shall be increased by $25,000 of preferred stock toIle sold to local interests and that the released capital shalleliminatinr, or reducing unsatisfactory assets

augmenting the bank's surplus or undivided profits1, 1̀974e$ all as set forth in la-. Awult's letter of November

"In th*eet -le connection, it is understood that the lossesrea_ ated at the last examination were charged off through aAzit orl, 0.0 e.1 0.5,000 in the bank's surplus and, while Lx.

by y. s letter does not specify the eliminations to be requiredPreeM°ffice$ it is assumed that at least the amount of de-ott ti-1;"en in securities in the lover grades will be charged°ugh the use of the released capital."

Approved.


11/13/34-5-

3484

Telegram to the Federal reserve agents at all Federal re-

Berlre banks, reading as follows:

"Ruling No. 37 interpreting Regulation T. The FederalReserve Board has been asked whether under Regulation T theet.lbstitution of unregistered, non-exempted securities is per-mltted in a designated old account if such substitution iseffected by the sale of such securities and the purchase ofOther such securities. In reply to this question, the BoardrtIlles that, if such substitution is made -within a period of,11,m successive business days and the proceeds of the securi-ties sold equal or exceed the cost of the securities purchasedso that the combination of transactions does not result inn increase in the adjusted debit balance of the account, it

Permitted by the regulation, regardless of -whether thet!Llle occurs before or after the purchase; Provided, That,e broker must obtain payment for the securities sold beforelie,PYs for the securities purchased, unless the maximum loan

ci le of the securities in the account exceeds the adjusted4.sult balance of the account by an amount not less than that60 be paid for the securities purchased."

Approved.

Letter dated November 12, 1934, approved by four members ofthe

Board, to kr. Case, Federal Reserve Agent at the Federal Re-

4171re kak of New York, reading as follows:

Comideration has been given to the application of

ret:rT. Holsapple under the provisions of section 32 of theng Act of 1933 for a permit to serve as officer and di-of The Hartsdale National Bank, Hartsdale, New York,partner of Holsapple, Safford 6: Company.

that u is noted that you state (F.R.B. Form 99d, Item 7)busi 8aPPle, Safford & Company 'does a bond commission110i-eas e and 'never takes interest in syndicates for thesucl,ation or Underwriting of securities nor participates int 'Lran actionst • The applicant describes the business ofhefirm ac follows, (F.R.B. Form 99a, Item 2):

'Investment commission business, specializing inbondspozti;i Firm does not handle margin accounts and neitherThe pates in syndicates nor takes positions.'1). 'acme statement is made by the firm (F.R.B. Form 99c, Item

.urthermore, in a letter attached to the application,


4/113/3,1

the applicant states that the firm does not make loans securedby stock or bond collateral and does no margin business.

"On the basis of the above information it klpears thatthe firm is acting exclusively as brokor in the execution ofOrders for the purchase and sale of securities for the accountOf

others, and that it is not engaged in undemTiting, distribut-orr dealing in securities. Accordingly, in view of thesruling, appearing at page 393 of the Federal

ReserveUl1et in

for June, 1934, it appears that the provisions ofsection 32 of the Banking Act of 1933 are not applicable tothe relationship referred to in the first paragraph of thisletter.

of "L:oreover, it appears that the provisions of section aAthe Clayton Act are likewise not applicable, since the

,!111 does not make loans secured by stock or bond collateral"3'4-cherotherwdse.in connection with the carrying of margin accounts or

Of "It will be appreciated if you will advise lir. Holsapplethe Loard's views."

-6-

3485

Approved.

Letter dated November 12, 1934, approved by five members ofthe tOrd, to Lr. Austin, Federal Reserve Agent at the Federal Re-aerve t

44k of Philadelphia, reading as follows:

"The Board has reconsidered the application of Jr.L J. II.13;:rd Iiinkson, Chester, Pennsylvania, for permission under thedi. °n3 of the Clayton Act to serve at the same time as ac -ect^- of The First National Bank of Chester, Chester-li:Z7r.i.dge Bank and Trust Company, Chester, and The Ridley Parkthe11141 16a11k, Ridley Park, all of Pennsylvania, and, upontatt.lsie of the information before it, includint that sub-the ,72 with your letter of October 1, 1934, still feels thatmite1,8:11ting of the permit applied for mould be incompatibledot he Public interest, as indicated in its letter to you ed ,

%It a ugust 24, 1934. You are requested to advise the appli-occordincly.

Propos:lease ascertain and advise as to that steps la•-. iiinksonClezuonelleake in order to comply with the provisions of the

the totIr

CI' to L-r- Austin, Federal Reserve Agent at the Federal

Approved.Lett er dated ilovember 12, 1934, approved by four reylbors of


11/13/34 -7-

3486

eerve Bank of Philadelphia, stating that the Board has given con-

aideration to the following application for a permit under the

ele-b°11. Act, and that, upon the basis of the information before it,

e°11eurs in the agent's opinion that the issuance of the permit ap-

Plied for would be incompatible with the public interest. The let-ter a150 requested the agent to communicate to the applicant theBottrdt

8 Position in the matter, and to advise the Board promptly

t° Yhether the applicant desires to submit any additional data,

'11(4 if not, as to what steps he proposes to take in order to comply17S:blithe provisions of the Clayton Act.

E. B. Lahaffey, for permission to serve at the same time4 director and officer of the North Camden .Trust Company,/C31tIliden, Levi Jersey, and as a director of The iLadera Nationalauk,

radera, Pennsylvania.

Approved.

Letter dated November 12, 1934, approved by four members ofthe r,ard, to

• Stevens, Federal Reserve Agent at the Federal Re-serve ,1414k of Chicago, reading as follows:

ti

Reference is made to Assistant Federal Reserve Agent/Olin 1Alli E 3 letter of October 31, 1934, advising that L. G. 111. ,1.t1,' 4irk4nd, Illinois, has expressed a desire to furnish 0.1;1-4il-4 further data in support of his Clayton Act application,

Aultluiring wheth(1. the Board desires you to inform ir.i4 i4°' 1t3 decision with regard to the application as stated1 letter to you of October 29.Board '1:1: ?„!u know, this application has been considered by the

be

would -- k,iiree occasions and the i)oard has not felt that it

Pert c°mPatible with the public interest to grant thekat 4, It is suggest inform ed, therefore, that you iorm La'.;.)1.17.e °A. the Board's action and advise him that, while it willto

clZasideration to any additional data which he may wishfro.m :it, unless the new information is materially different"at which has been submitted heretofore, the Board will


11/13/34 -8-

3487

not be disposed to change its action with regard to the appli-cation,

"Please advise the Board of the action taken in this con-in order that its records nay be complete."

Approved.

Letter to hr. Stevens, Federal Reserve Agent at the Federal

Reserve Bank of Chicago, reading as follows:

"Reference is made to the Clayton Act permit granted byhe Board on May 19, 1934, to Lii. Frank J. B. DuChateau,

-bay, -Wisconsin, to serve at the same time as director ofnr).,4°Cg-Citizens National Bank of Green Bay' and as director

West Side State Bank, both of Green Bay, Wisconsin, and tostant Federal Reserve Agent Young's letter of October 31,inclosing a copy of a letter dated October 30, 1934,

-Lrolnhr. DuChateau.el LI". DuChateau advises that in January, 1934, he wasIjinted vice president of West Side State Bank, Green Bay,e7"118in, and now requests that he be granted permission toerveltalso as an officer of that bank.

Since it appears from Assistant Federal Reserve AgentYoung!your (,:,”atement in his letter of October 31, 1934, that

---L4.ce knows of no change in the applicant's relationships

r_7le banks involved which would make the granting of theh csuest

th

b incompatible with the public interest the application

v approved.n ;

groalto-edhere are inclosed the original and copies of the permitto LI.. DuChateau covering his present services as di-of"Lelloez-Citizens National Bank of Green Bay and as

Bay, or and officer of West Side State Bank, both of Greenthe b2:,!°°nsin, for transmittal by you to the applicant and

involved and a copy for your files."

the

Ot

Letters

13°ard,,

Etpprovai

Approved.

dated hovember 12, 1934, approved by four members of

to applicants for permits under the Clayton Act, advising

Of their applications as follows:Geo

ame t.rr°3 Stewart, Jr., for permission to serve at theBank 2-11Ie 'le a director and officer of The Valley Nationaldire4f

Chambersburg, Chambersburg, Pennsylvania, and ;.s a14tnia.

r of the liarrisburg Trust Company, riarrisburg, ennsy1_


3488

-9..

1,harold S. Day, for permission to serve at the same time as

a director and officer of The Florida National Bank at Bartow,Bart omr, Florida, and as a director and officer of The FloridaIlational Bank at Lakeland, Lakeland, Florida.

L" J. N. Greening, for permission to serve at the same timea director and officer of The Florida National Bank at

.uakeland, Lakeland, Florida, and as a director and officerof The Florida National BAnk at Bartow, Bartow, Florida.

Enger, for permission to serve at the same time asofficer of The First hational Bank in Valat Cheer, Nhat

reer, Iowa, and as a director and officer of the First Stateof Claremont, Claremont, South Dakota.

Approved.

There Was then presented the following application for a

n stock of a Federal reserve bank:

lication for SURRENDER of Stock: Shares

4 e County Savings Bank,--vien, Michigan 62 62

Pp ovedl

Approved.

Thereupon the meeting adjourned.

Ai'ithr..eri


19341113_minutes.pdf

Documents

federal reserve bank

federal reserve agent

federal reservereading

federal reserve bankof

bank of jamestown

federal reserveboard

report of examination

new york