19370216_300p_minutes.pdf

304

tern was

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

held in Washington on'Tuesday, February 16, 1937, at 3:00 p. In.

PRESENT: Mr. Eccles, ChairmanMr. Ransom, Vice ChairmanMr. BroderickMr. SzymczakMr. McKeeMr. Davis

Mr. Morrill, 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 theBoard:

The minutes of the meeting of the Board of Governors of the Fed-erea a

esenre System held on February 15, 1937, were approved unanimously.

Telegram to Mr. Gilbert, First Vice President of the Federal Re-

8"e Bank of Dallas, stating that the Board approves the establishment

17411311t change by the bank today of the rates of discount and purchase

III itS existing schedule.

Approved unanimously.

Letter to Mr. Young, Deputy Chairman of the Federal Reserve Bank

ot New York, reading as follows:

"This refers to the recommendation contained in yourle”er of January 11 relative to increases in salaries ofcertain employees of your bank, and to your letter of January

in connection therewith."With respect to the employees named below, since the

8alaries recommended are in excess of the maximums providedf°r thei •r respective positions in the current personnel clas-llieation plan of your bank but are within the maximums

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

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"provided in the proposed revision of the plan, the Board hasdeferred action on the proposed increases until it has had anoPportunity to pass on the revised personnel classificationplan as a whole.

Proposed Salary W. C. MorganChief $5,500W. A. Heinl

, Purchasing DivisionChief, Personnel Division 5,250

L. Galantiere Foreign Information Specialist 6,000

"The salaries proposed for Messrs. E. F. Cleary, Examiner,and H. A. Muether, Chief of the Maintenance Division of the

Liding Operating Department, are within the maximums providedror the positions occupied in the present personnel classifica-tion plan of your bank, and the Board interposes no objectionto the payment of the proposed salaries to these employees.

"In view of the fact that the responsibilities of the As-sistant Federal Reserve Agent at your bank are somewhat greaterthan at any other Federal Reserve bank as he holds in custodyas Agent for the Federal Reserve Agents at the other FederalReserve banks all of the United States Government securitiespledged with them as collateral for Federal Reserve notes, andfl view of the other responsible duties performed by Mr.

'Aryker, the Board approves a salary for him at the rate of*000 per annum, which represents an increase of $500 over

e salary in effect on December 31, 1936."Mr. Gidney was advised in the Board's letter of September

29, 1956, of its approval of the salaries of Messrs. R. H.P.hinney and N. C. Cooper, Alternate Assistant Federal Reserve'clFents, each at the rate of $3,100 per annum, and since no,flange is recommended in their salaries no further action by

Board appears to be necessary at this time."


Letter to Mr. Sargent, Secretary of the Federal Reserve Bank of

Francisco, reading as follows:

"Referring to your letter of February 5, the Board ap-'oves the reappointment of Messrs. Ralph Burnside, Shannon

andall, Henry D. Nichols, Stuart L. Rawlings, and William2. Volkmann as members of the Industrial Advisory Committee'01r the Twelfth Federal Reserve District to serve for terms

- °Ile year each beginning on March 1, 1957."



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Letter to the board of directors of the "Broward Bank and Trust

C°1118xV", Fort Lauderdale, Florida, stating that, subject to the condi -

ti°48 of membership numbered 1 to 6 contained in the Board's Regulation

11 end the following special condition, the Board approves the bank's ap-

Plication

Pr°Priate

11'7.

for membership in the Federal Reserve System and for the ap-

amount of stock in the Federal Reserve Bank of Atlanta:

Such bank shall make adequate provision for depre-ciation in its banking house and furniture andfixtures."

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

"The Board of Governors of the Federal Reserve System,a,"Pproves the application of the 'Broward Bank and Trust Com-'4113°, Fort Lauderdale, Florida, for membership in the Fed-,Fal.Reserve System, subject to the conditions prescribed in

Zinae inclosed letter which you are requested to forward toe board of directors of the institution. Two copies of such

the are also inclosed, one of which is for your files and

other of which you are requested to forward to the State''oraptroller of the State of Florida for his information.4, "In view of the nominal amount of estimated losses and'841e fact that they consisted of cash shortages which it is as-

will be charged off in the ordinary course of businessnot recovered, the usual condition regarding eliminationof estimated losses has not been prescribed."

Memorandum dated January 22, 1937, prepared by the Board's Divi-eion of

Examinations for the purpose of placing before the Board the

440stim,of the supervision and examination of the four foreign banking

e0I'Por tia--"e operating at the present time under the provisions of Sec-

tions

Pressi

" of opinion of the policy to be followed in connection therewith.

25 and 25(a) of the Federal Reserve Act, and of obtaining an ex-


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The memorandum reviewed the past practice of the Board in this connec-tion

and recommended:

1' "-....P...soLileo/ Condition: That no change be made in thepractice of obtaining semi-annual reports of conditionof the foreign banking corporations.

2. Examinations:a. The Chase Bank: (operating under the provisions

of Section 25(a) of the FederalReserve Act)

1. That the Board's examiners continue toexamine annually the head office located in NewYork. (While the operations are conducted almostentirely at the branches, the Board's examinershave reported that the head office obtains compre-hensive reports of the operations of the branches,maintains credit files regarding the lines ofcredit extended at the branches, and closely super-vises the operations of branches.)

2. That arrangements be made with the Comp-troller of the Currency to have branches examinedPeriodically by national bank examiners on foreignduty.

b. State Corporations which have executed agreements with Board _pursuant to Section 25 of the Federal Re-serve Act:

That unless circumstances in the future shouldrender a change of policy desirable, the Board notexamine the International Banking Corporation, theFrench American Banking Corporation, or the First ofBoston International Corporation.

The )11em°randum also suggested that, since the New York State Banking De-

krtmen+-- annually examines the French American Banking Corporation and the

New" York

or bom+

International Corporation, the Board arrange through the Federalileserve

'Dank of New York to obtain, if possible, copies of the reports

°rfices of the International Banking Corporation and the First


yi, )

2/16/37-5-

f such examinations as they are made from time to time.

thaget,

The recommendations contained inthe memorandum were approved unanimously.

Letter to "The National Exchange Bank & Trust Company of Car-

Carthage, New York, reading as follows:

19 "This refers to the resolution adopted on August 28,by the board of directors of your bank signifying the

uank's desire to surrender its right to exercise the trustPowers which have heretofore been granted to it by the Fed-

Reserve Board, now kno,in as the Board of Governors ofthe Federal Reserve System.

"The Board understands that your bank has been dischargedor otherwise properly relieved in accordance with the law of-3-1 of its duties as fiduciary. The Board, therefore, hasissued a formal certificate to your bank certifying that it isn° longer authorized to exercise any of the fiduciary powerscovered by the provisions of section 11(k) of the Federal Re-rye Act, as amended. This certificate is inclosed herewith., "In this connection, your attention is called to the4act that, under the provisions of section 11(k) of the Fed-,e,ral Reserve Act, as amended, when such a certificate hasren issued by the Board of Governors of the Federal Reserve‘'sYsem to a national bank, such bank (1) shall no longer beriubJect to the provisions of section 11(k) of the Federal

r 14!8erve Act or the regulations of the Board of Governors ofe Federal Reserve System made pursuant thereto, (2) shallentitled to have returned to it any securities which it

t'Y have deposited with the State or similar authorities forelle Protection of private or court trusts, and (3) shall notFedcise any of the powers covered by section 11(k) of theo eral Reserve Act except with the permission of the Board

Governors of the Federal Reserve System."

Approved unanimously, together witha letter to Mr. Dillistin, Assistant Vice

President of the Federal Reserve Bank ofNew York, reading as follows:

-cistetle.a

nar of 'The National Exchange Bank & Trust Company of"This refers to previous correspondence relating to thedesi-

CpEot=ze, New York, to surrender its right to exer—


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"It is unlerstood from advices received from the office ofthe Comptroller of the Currency that The National ExchangeBank & Trust Company of Carthage has been discharged or other-Wise properly relieved, in accordance with the law, of all ofits duties as fiduciary."It appears that the words Trust Company' have not been

eliminated from the title of the bank as required by sectionl(b) of Regulation F. However, the bank has been in liquida-tion. since 1932 and, in the circumstances, it appears that torequire a change in the name of the bank would involve unneces-!a-FY inconvenience and hardship. Accordingly, the Board has"alved compliance with the pertinent provisions of Regula-tion p.

"It also appears that it is impossible Cor the bank toflu)-LY comply with the provisions of section 16(a) of RegulationP relating to the return of permits issued by the Board be-

?ause the permit issued to the bank under date of February 8,e?w 222 has been filed with the Surrogate of Jefferson County,York, and is a part of the records of that office. In the..3,:rcumstances, the Board has !,,aived further compliance with'"e Pertinent provisions of Regulation F.tx "Accordingly, the Board has today issued to The Nationalvr,ehange Bank & Trust Company of Carthage a certificate tothe effect that the bank: is no longer authorized to exerciseartists powers, and a copy of such certificate, together with

oPy of the Board's letter to the bank, is inclosed here-

Letter to Mr. Sargent, Vice President of the Federal Reserve BankOr

S" Francisco, reading as follows:

mit ."This refers to your letter of February 2, 1937, trans-sa tlng the application of'San Diego First National Company',vortl, Diego, California, for a voting permit entitling it to

Trustthe stock which it owns or controls of The First Nationali and Savings Bank of San Diego, San Diego, California.

4. In the light of the facts set forth in such applioh-ulo11, the Board has determined that the applicant is not en-.*,ged, directly or indirectly, as a business in holding thek of, or managing or controlling, banks, banking associa-

of°113' 3avings banks, or trust companies, within the meaningSc section 2(c) of the Banking Act of 1933, as amended byEt151 1-°n 301 of the Banking Act of 1935, and, accordingly, thepiW-1-cant is not a holding company affiliate for any purposesOther

than those of section 23A of the Federal Reserve Act.


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"The circumstances in this case appear to be similar to thosein other cases in which the Board has heretofore made likedeterminations, including that of American Company, San Fran-cisco, California, with respect to which you were advised inthe Board's letter of November 50, 1935.

it Concerning Ir'le]0d herewith is a letter to the applicant advising

the Board's action in this matter. If, for anyiroeason, you believe that this matter should be reconsideredY the Board, please communicate with the Board. OtherwiseY.?11 are requested to transmit the inclosed letter to the ap-Plieant. A copy of the letter is also inclosed for yourfiles,

to ma:Ielsayilfe_ note, the Board expressly reserves the right

determination of this matter at any time?fl the basis of the then existing facts. In this connection,

1111s)jareiested that you advise the Board if, at any time,this matter should again be considered by it."

Approved unanimously, together witha letter to the "San Diego First NationalCompany", San Diego, California, reading asfollows:

v "This refers to the application of your company for a2ting permit entitling it to vote the stock which it owns or

Die of The First National Trust and Savings Bank of Sango, San Diego, California.

"The Board understands that your company owns or con-trol, „Stan

of the preferred stock and 4,826 of the 5,000 out-lflg shares of common stock of The First National Trust

c-' Savings Bank of San Diego, but that it does not own orTonntrol any stock of, or manage or control, any other bank.co view of these facts, the Board has determined that yourinnTanY is not engaged, directly or indirectly, as a business

ding the stock of, or managing or controlling, banks,in'•Lng associations, savings banks, or trust companies, with-as the meaning of section 2(c) of the Banking Act of 1935,there amended by section 301 of the Banking Act of 19F,5, and,

Ore, it is not a holding company affiliate for any pur-AcZes other than those of section 23A of the Federal Reserve

0bta'1

Accordingly, it is not necessary for your company toeon :11 a voting permit and the Board will give no further

slleration to its application.trci 'If, however, your company should at any time own or con-trol.- a substantial portion of the stock of, or manage or con-

) more than one bank, this matter should again be submitted


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"to the Board for its determination. The Board reserves theright to make a further determination of this matter at anytime on the basis of the then existing facts."

Letter to Mr. Sinclair, President of the Federal Reserve Bank of

Philadelphia, reading as follows:

"Reference is made to your letter of January 29, 1957,in Which yoa say that you have been asked by Judge Cole toPaY him the sum of 4750 on account of services rendered inconnection with the third trial of the suit of your bankagainst Ocean City, New Jersey.

"The Board has already approved the payment of i3,625,1)Judge Cole, and you state that the additional sum of000 is considered by you and your counsel as a reasonablePayment at this time and one which will be well within theamount to be charged finally.

"In the circumstances, the Board approves the payment$7of 50 to Judge Cole on account of his services."


Thereupon the meeting adjourned.

oelLA,J2-12 Secretary.

Chairman.


19370216_300p_minutes.pdf

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