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Hamlin, Charles S., Scrap Book — Volume 234, FRBoard Members
205.001 - Hamlin Charles S
Scrap Book - Volume 234
FRBoard Members
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Office Correspondence
To
The Files
From
Mr. Coe
vv
Date August 11, 1941
Subject:
S
After correspondence with Mrs. Hamlin (see letters of May
25 and June 4, 1941) the items attached hereto and listed below,
because of their possible confidential character, were taken from
Volume 234 of Mr. Hamlin's scrap book and placed in the Board's
files:
VOLUME 234
Page 10
Extract from report of National Industrial Conference Board.
EM2e
1
X-7282) Purchase of bank stock by State member banks.
Page 22
Memo to Mr. Hamlin from Mr. Goldenweiser re Potato Prices in
Aroostook County.
Page 105
Memo to Mr. Hamlin from Mr. Morrill re plan for spreading employment in the F.R.Bk. of N.Y.
Page 129
Earnings & Expenses of F.R. Banks, October 1932.
Page 145
Memo to Mr. Morrill from Mr. Van Fossen re Direct Loans to Individuals, etc.
•
641
NATIONAL INDUSTRIAL CONFERENCE BOARD.
Extract fram report dated Aagust, 1932:
The Problem Viewed from the Standpoint of Concerns Reporting Credit
Refused or Credit Difficulty.
The second aspect of the general problem of working out a national
program of banlr credit reconstruction has to do with concerns reporting
credit refusal or credit dculty because the bulk of these concerns
were small concerns. In other words, Lily effective prograa of such a
character must give careful consideration to the credit problem of the
small concern. Three main reasons may be assigned for this view. In the
first place, there is no ample justification for eliminating them from consideration on the grounds that they are mainly high cost or marginal
producers, for there exist no data an whidh such a conclusion can be based.
In the second place, in spite of all tendencies toward commercial and
inaustrial combination, a vast mass of American business enterprise remains
small enterprise and a large share of the nct lanai product is producea by
small enterprise. In the third place, the maintenance of equal and open
op-Dortunity for small enterprise rernins a requisite of American democratic
iI----
•nsideration
might be given to the establishment of _ i-w bank, Whose capital might be
nt1y furnished by industrial and cammercial concerns together with banking
institutions and whose operations would be directed exclusively to the problens
of furnishing working capital to snail concerns. There is no question that the
costs of handling ti.,) financing business of small concerns are higher than the
costs of handling the financing business of large concerns. There is suggestive
evidence that many large banks have became indifferent to the small concern for
this reason. Certainly it is true that different problems of credit analysis
and of collateral security are involved than in the case of large concerns.
There is reason to believe that a new s2ecialized banking institution of this
character, with adeouate capital resources and subsidiary banks located in the
principal industrial centers of the country, could render highly valuable
services to industry and cammerce lintier existing circumstances.
VOLUME 234
PAGE 10
•
•
-c
1.udiut
FEDERAL RESERVE BOARID
WASHINGTON
ADDRESS OFFICIAL CORRESPONDENCE TO
THE FEDERAL RE-SERVE BOARD
X-7282
October 31, 1932.
SU:JEOT:
Purchase of bank stock by State member banks.
Dear Sir:
The Federal Reserve Board recently received a request from
a State member bank for permission to organize and acquire substantially all of the capital stock of a bank to be located beyond the
limits of the city in which the meLlber bank is situated.
This request
was sullmitted under the provisions of a condition of membership which
requires the member bank to obtain the permission of the Federal Reserve Board before it acquires any stock in another bank or trust
company.
After careful consideration of the mntter, the Board advised
the member bank that it does not look with favor upon the acquisition
by a member bank of stock in another bank or trust company and that,
in view of the provision of Section 9 of the Federal Reserve Act which
forbids a State member bank to retain its membership in the Federal
Reserve System if it establishes a branch beyond the limits of the
city, town, or village in which the parent bank is situated, the Board
did not feel that it cuuld properly grant the member bank the permission
for which it had applied.
VOLUME 234
PAGE 21
In this connection, attention was called to
411
4111b
•••
-2the fact that the organization and ownership by
X-7282
member bank of „1111011°1!
stantially all of the capital stock of a bank located beyond the limits
of the city in which such member bank is situated would have practically
the same effect as the establishment of a branch of such bank beyond the
limits of the city in which it is located, and would be contrary to the
spirit and purpose of the provision of Section 9 of the Federal Reserve
Act referred to above.
The position taken by the Board In this matter is called to
your attention for your information in the event that cases involving
similar circumstances should arise hereafter in your District; and the
Board should be advised in detail of the circumstances involved in any
such case.
In this connection, it may be noted that some State member
banks are not subject to the condition of membership requiring them to
obtain the Board's permission before acquiring stock in another bank.
However, in view of the provision of Section 9 of the Federal Reserve
Act which prohibits the establishment of branches beyond the limits of
the city, town, or village in which the parent member bank is situated,
the Board should also be advised of all the circumstances involved in
any case in which such a State member bank desires to acquire a substantial amount of the stock of another bank located outside of the
limits of the city in which the member bank is situated.
Very truly yours,
Chester Morrill,
Secretary.
TO ALL FEDERAL RESERVE AGENTS.
Form No. 131P
Office Correspontence
To
Mr. Hamlin
From
Mr. Goldenweiser
4.0
411
FEDERAL RESERVE
BOARD
Date
October 28,1932_
Subject: Potato Prices in Aroostook _Co-tanty
loPU
2-8495
The Department of Agriculture confirms your information on ride fluctuations in the price of' potatoes in Maine.
It seems that in early Sep-
tember they were selling at a price of 50-60 cents per barrel.
By the
latter part of September prices had fallen to a range of 30 cents for
"Cobblers" to 110 cents for "Green Mountains".
There is normally a differ-
ential of about 10 cents a barrel in prices of these two grades of potatoes.
By the midclle of October prices of "Green Mountains" had advanced to about
65 cents a barrel, and since then have declined to about 50 cents.
We are
informed that there were comparatively few sales at 65 cents.
We understand from the Department of Agriculture that the recent rise
in price reflected a demand for potatoes to fill storage requirements and
also the appearance of late blight rot, which continues to develop after
the potatoes are in storage, and which will cut down the effective supnly.
Another factor in the rise in price in October was the October crop report of the Department of Agriculture, issued on the eleventh of the
month, which indicated a smaller crop than had been forecast in September.
It is in general true that the potato crap in the Nev England States
is smeller this year than usual, and for that reason prices in that area
are some7,hat stronger than in other parts of the country where the crop is
larger than last year.
In the three major eastern potato-producing states
the October forecast of the Department of Agriculture was 22,000,000 bushels
below the 1931 harvest.
In the five central states, on the other hand, it
was 10,000,000 bushels above the 1931 harvest.
VOLUME 234
PAGE 22
•
Form No. 131
f
IA,.
.Office e'orresi)ojence
To
Mr. Hamlin
Fnalin
Mr. !,torrill
FEDERAL RESERVE
BOARD
vtAk
Date Movember 4, 1932
Subject:_
3-8496
7or your oonolderation you will find nttached a copy
of a letter dated November 3 fran Chairman Case of the "Federal Reserve Bank of naw York, tocether with copies of the inclosares
tranamitte, therewith relating to a plan for spreading employment
in tbe 'Alderal Ileserve jank of New York, and a copy of my letter
of acl-mowledment of this date. •
Att9.chments.
Mimi0§34
November 4, 1104
Pr. J. 11. Oasis Cimino*,
, Peak sr Yin Tait,
Mina 100.1“
lbw Yost, N. Y.
Dear Iwo Oases
Ta the atoms, of ovasser Meyer resaipt
Ia asknoilladiod of yesi letter of emotioar 3 sad
the lasIssonow trommanitted Monad* solatlas to
41 play for partielpstien
kr time Mara Poser,*
amok of Yam York la lame whare•theimork onisonat
sponsored tir a imego•osoolttee of the iisoklais oil
ladustriel Camitt***
We matter will to brottegit to the. Ittioties of the abort at the eirlieet opperkamity,
Very Um* youlise
(Letterhead of)
BAja Or Ng tv TORE
November 3, 1932.
Dear :overnor Meyer:
e have hnd under diseussion for several weeks the possibility of
this bask's partieipating in the .bare-the -work movement eponecrei by a
sub-oommittee of the Banking and Industrial ‘.lommIttee. 'ot have felt tht
it Nould be desirable in this matter for the banking community to take
cooperative action in order that ihatever is done ni12:ht have the ta .. ximum
effeetiveness. The new York Clearing House today, at its necting,
-.0onted resolutions reeommending to their menbershil) pqrticipetion in the
share-the-mor): movement. I an enclosing herewith a record of the action
of the clearing house.
:.o11owin;7, this action of the clearing houne our directors today a4opted a resolution providing for participation by this bank in the
movement, and I enclose herewith a copy of the resolution aelopted.
The 4,7, reduction in salaries provided by this plan for a period
of six v,onths woulel .mount to an sr Tegate of 06,000, a sum which we
believe, !Inez° careful investigation, would be approximately the alaount
required to pay the salaries for six months of the additional people to be
omployed on a temporary basis in accordance with the plan. Thus, the
total payroll of the bank would not be increased as a result of the plan.
The resolution recites that the adoption of the plan is subject
to the approval of the Federal Amery, Board with respect to the provision affecting salaries, and I shall appreciate it if y01.1111.11 advise
ne of the Board's action in the matter.
Faithfully yours,
(Signed) T. H. OkSE
J. H. Oaso,
Chairman.
ffonorable Eugene Meyer,
Governor, Federal Aeserve Board,
Viashington, D. G.
enclosures (2)
CorY
It a meeting of the New 'York Clearing House Associntion held today,
rr. Iialter C. Teagle, Chlirman of the "hare the Wore Mivement, tn actty
of the ban:Ang and industrial committees of the twelve lrederal Reserve
lAstricts, told of his study of the unemployment problem confronting the
country today and asked the cooperation of the bunks in Greater New York in
carrying out the purpose of this siveseat so far as brink employees are concerned.
:+.fter hearing Mt. Teacle's report the following resolution, recommended by the Clearing liouse Committee, Ms unanimously adopted:
!E2A3, many former bank employes are now without employment, and continuoil unemployment is a principal
obstruction to business improvement,
:T Itt.,.6LVED, that as an emelrency measure we
reeomrend ;some form of "share the work" or other
division of work so that more may be employed or ut
least that the continuanee of the size of staff now
employed be assured.
That the particular form of carrying out this reammendation be left to the im7:i.vidual action and judment
of each institution.
Vas. Buckner, President of the A.seociation, stated that there was no
of
dinerel formula that would apply alike to all institutions, but the banks
e
the Cloftring Holes Association having unanimously approved of the principl
involved, melt Utak would work out for itself a plan to make effective the
carrying out of the above resolution.
copy of this resolution will be sent to each principal Clearing
House in the United states.
3, 1932.
November
Resolution adopted by the Board of Arectors
of the Federal Riserve in of New York at its
meeting on November 3, 1932.
oglemsolasalwr
WICHEAS, it is desirable and arpropriate that this ban‹ should
participate in the ''Share the ;sore MOVenent in order to wrovide employment for sone persons now uner:loyeds and
the officers h%ve submitted the plan hereinafter
and have reported that in their opinion it
resolution,
in
this
described
into effect at this bank and that this
this
plan
put
to
is prictioable
this
bank of appronimately125 additional
by
employment
will involve the
Is in operation, and
rlan
the
elloyees ,'urins- the period
etin held
the New York Clearirw, House •.ssociation at a
recommended
resolution
followIng
the
on Thursday, November 3, 1932, adopted
by the Cleriring douse Committee:
"MLRELS„ many former bank employes are now without
employment, and oontinued unemployment is a principal
obstrlotion to business improvement.
*THEM:FURL, BL IT MSOINED, that as an amergency
measure we resommend sone form of 'sham the work' or
other division of work so that more nay be Employed and
that the continuance of those now employed in their
situations be assured.
nbet the particalar form of coarryin out this
ressnneadation be left to the individual action and
judipment of each institution."
ruff, T1ENtFORF, upon the reoommendation of the Officers Council
and of the Oommittee of the Directors of this bank on the ":felfare of
:taff, be it
OLVED that this bara adopt the following plan, subject to the
approval of the Federal ''eserve Boar". with respect to the provision effecting sm.lariest
Cl) That for /: period of six months beginning rovember 16, 1932,
an ending :say 15, 1933, the workint! time of each employee connected with
th, head office of this bank in Nen York City be reduced as far as practicable by one-half day eadh week, or by an eluivalent amount of time, as may
be arrmnged by the managers of the various departments, and that during such
oeriod of six months the salaries of all of the present officers and emloloyees connecte with the bead office of this bank in New York City be
reduced by 4 per cent; and
Page 2
(2) that this bask *employ on a temporary basis such new
employees as the officers sisy dean asammaary or advisuble, in order
to put this plan into effect and to oarry on the work of this bfink
dlrinr such perics1 without loss of efficiency in operation.
(3) that copies of this rnsoliltion be sent to the Oheirman of the Board of Directors of the Buffalo branch of this bank and
to the Managing Direator of that branch, for the information of the
Directors and Officers of that branch, and with the suggestion that
they consider the desirability of that branch participating in the
"bhure the work" movement.
CONFIDENTIAL
Not for publication
B-811
EARNINGS AND EXPENSES OF FEDERAL RESERVE TANKS, OCTOBER 1932
Federal
Current expenses
Earnings from
Reserve
Bank
Boston
7ew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
:ansas City
llas
Francisco
TOTAL
Oct. 1932
Sept. 1932
Oct. 1931
Jan.-Oct. 1932
1931
Discounte.d
bills
Purchased
bills
U. S.
securities
$9,077 $149,449
38,970 1,06-1,851
197,261
12,410
$39,616
144,326
1972
October
of
1.1onth
Total
sources
Exclusive
of cost of .
F.R.currency
Total
$202,090
1,268,919
368,205
360,542
$150,332
523,851
153,977
201,916
$157,867
52,578
165,532
214,976
Current net
earnings
Total
Ratio to
raid-in
capital
Oct. 1930
Jan.
.s
Current net earnin,;
Less accrued
dividends and
Ratio
net charges
to
Total
paid-in (current)to
capital profit and loss
Per cent
$44,223 4.8
740,341 14.8
202,673 14.9
145,566 12.1
$870,484
8,232,703
2,642,270
2,344,305
Per cent
9.2
16.6
19.5
$298,515
5,412,295
1,859,790
19.6
1,589,623
12,054
251,035
$3,94g
23,162
10,652
7,78g
61,107
61,433
44,366
26,211
5,988
5,410
16,004
4,125
66,423
66,147
309,245
94,064
7,757
4,898
21,114
7,743
141,275
137,888
390,731
172,143
117,519
97,150
283,455
106,957
121,093
100,032
288,056
111,663
4.6
37,856 9.3
102,675 7.2
20,460 5.5
457,847
710,606
2,023,025
244,177
10.5
17.4
14.0
6.5
192,432
462,664
1,657,094
5,049
34,363
49,868
30,533
202,609
2,593
3,461
3,342
9,065
89,249
80,535
67,266
173,418
2,720
22,26
3,285
14,101
128,925
156,110
104X6
399,193
78,574
126,362
93,751
193,103
80,45s
129,996
93,967
203,939
48,467
26,114
10,459
195,254
19.7
7.6
3.2
21.9
422,562
.394,812
17.3
11.6
4.9
29.7
270,552
184,627
-46,778
2,119,637
932,361
1,061,280
1,423,226
122,499
129,414
2,605,973
136,166
2,710,798
210,996
960,607
22,177,147 2,138,062
10,164,453 1,629,059
3,790,447
4,031,245
3,593,727
43,074,714
20,841,173
2,126,947 2,196,177 1,594,270
2,105,662 2,184,640 1,846,405
2,156,518 2,290,216 1,303,511
20,935,202 21,672,608 21,202,106
21,246,977 22,544,456 -1,703,285
12.3
14.7
9.3
16.4
16.4
14,005,500
147,862
89,665
123,001
998,898
16,216,441 2,543,044
5,606,813 3,440,848
20,162
161,019
2,693,294
c-21,202,106
-1,703,285
FEDERAL RESERVE BOARD
DIVISION OF BANK OPERATIONS
NOVEMBER 12, 1932.
VOLUME 234
PAGE 129
-8,767,823
,Let
November
Mr. alorrill
7, 1932
"Arect Loans to Individuals, etc.
Mr. Van Fosse
OON.FI
1TIAL
Attached hereto ace statements showing the number of ar, lice..tions of
individuals, partnerships and corporations for loans not granted by the ied.eral reserve banks to October,15, October 22 and October 29, res?ectively,
including a tabulation of Cle reasons for not granting the loans applied. for.
It will be noted that of 526 applications refused to October 29, as shown
in the last statemnt, 287 v. re because of unsatisfactory security; 221 paper
not eligible; 10 loans pla.ced with other banks; 14 TrE,..ent credit deem& adequate;
and 14 denial. of credit by other banks not shown.
Arect loans to individuals, 7N,rtnerships and. con orations 4-,-ranted by the
Federal reserve banks to October 29, .,nd the amount of such loans outstanding on
that date are as follows:
Advanced
'Federal Resr.rve Bank of New York
Amaralk, N.T.
Amawalk Nursery Company
Astoria, N.T.
Dorman Brothers
New York, N.Y.
Yoster and Stewart 0o.
Friedman 1 Sons,Vedkware Co.,
New Yorke N.Y.
Inc.
Ne-,- York, N.Y.
Joseph H. Meyer Brothers
New York, N.T.
giller-Cummings Co., Inc.
New York, N.Y.
iborris
Clifton, N. J.
New jersey Flour Mills 03
New York. N.Y.
Saaramelli A clo:. Inc.
'ley York, N.Y.
S. Wulff Sons, Inc.
?utstanAuz
$15,000
5,000
50,000
$15.000
4,700
50,000
25,000
15,500
125,000
31.000
50.000
20,000
10,000
25,000
15.500
125,000
31,000
35,000
20,000
10.000
lox
3.1427
3:1427
Federal Reserve rank of Hiiladelphis,
J. F. Apple & )o.. Inc.
J. B. liankeln(kienkeln &PgcCo
VOLUME 234
PAGE 145
Lancaster, Fa.
Ithiladelphia, Pa.
Mr.
-
?rill
:eo
'fiederak flerrve issinic
:
lamed
f
Continental Turpentin* &
21oein lorp.
Rishmond f.osiery *Impair
tton 3001
Mississimi
Prodacte o.
l'uOttockimi
tis..
iicerville, Go.
$19750
50,000
$19,75''
imams, Miss.
los,000
lus000
90,947
Itricoolym„ !Ann.
13,580
3.Oloud,Minn.
lialwapolis,uinn. "7,500
S3,959
7,900
moo
A.aurel,
50,000
'letkoMX
nntn
Srias1yn
0o.
.
Kiddie Com Co.
Ze4 r1 te
o.
r
New Woxicxt Itealier &i1,7;!ber(ito. Teriia1tUo,N.Uex. 60,000
(40404est to slight revision)
53,000*
The Moral Reserve Bank of lleveland,in its letter of octlber 15, makes the
following statement in regArd t..) the attitude of the bankers in that district:
*It is apparent that throughout our district there is a marked &once of attitude
on the prat of our lommissrs in the mei .ter of granting loans for current needs.
believe loans of Ikko Obsvalliterareb being more freely granted.*
I
APPLICATIOLS OF INDIVIEUALS, PARTNERSHIPS ;,.;',1D CORPORATIONS POR LOAFS POT GRA7TFD
BY TH.f. MID1R41. IC/UWE 3AAIS — TO 0'10BI 15, 14132
...19asont fr c,t
Number
lti,
A
nt
i
f r
1
'Present credit' Paper
Total
Loans
1
1 Paper not
ii)enial of
of
i reek
Iplaced with
dcemel
I
I ending
to
not
Isatisfactorily i crocAt not
loans
bLI
i Oct. 15 (121._15.109.1r
iAssaualL--1.9111
.22=1A----4-11kaa
t---Lieraliatit-,
Boston
Kew York
Phildea.phia
Cleveland
kiichiiz4
Atlanta
Chtco
St. Louis
MIL Le' ol 13
Kansas Cit,1
Dallas
San Francisco
i
To tal
7
115
__
5
-_
3
1
--
42
--
--
7
__
__
2
107
1
3
94
30
--
8
.011
OM OM
2
-..
am
16
1
14
1
--
19
9
9
1
__
1
.....
__
_-
49s
10
3
3
18
26
1
4
89
16
6
MINN.
41111.1.
1110
33
56
51
6
12
"WPM.
50
minr.•
7
11
1
6
143
23
14
213
MINWIN
3
S10,240
3,128,050
856,60('
26,000
669,81)4
1,837.065
1,296,650
259,800
232,000
62,672
68,200
4111114=1
MINIM
269
#47-roximate; amonnts so;:eti ect not strte0.
DIV ISI°N 01' BANK OP MAT IC NS
NOVEMBR 7, 1932
0010
3
163,250
18,819,411
ODIPOTIATIONS TOR LOANS NOT GRAMM
APPLICA.TIONS OF IrDIVIDUALS,
BY 1E,!: FSD4RAL Fil?S73177 8ARICS - TO OCTOVR 22, 1932
-Num er
Jpresent credit. Paper
Loans
i:otal
Week
I not
deemed
placed withl
to
ending
adequate
Oct. 22 'other banks
_Oqt. 22
__
5
7
3oston
N'5,1 York
Philadelphia
Oleveland
1
...-
lichmond
.A.tlant a
(Thicrgo
--2
45
107
90
1
St. Louis
,apolis
Vinn,
Kansas rli. ty
Dallas
San ftancisco
-4
--1
30
18
19
1
1
1
Total
13
511
120
43
00111tale
.10.4•11.
3
•••••••
1
7
.1•4111110
•••
lo
33
56
12
11
1
CD
10
18
14
914
20
1
6
9
9
10
3
; Piper not Denial of!
Isatisfactor- ',credit not
secured 1 shown
ale
.11•••••
50
8
.0116 MID
1,837,065
1,302,650
259.800
285,500
62,672
68,200
168,250
9
279
$19,240
3,181,050
891,600
26,C00
869,e814
4100,011.
23
#Aporovimate; amounts sometimes not stated.
DIVISION OP BOX 0P1R.A.TIGNS
107111,43701 7, 1932
,
41110 4110
Amount
of
loans
decli ne&
3
8,971,911
API-1IC.ATIO NS 0
IND IV WILLS. p
14E)
By
Miniver
Loans
Total
"reel:
4)laced
to
ending
Oct. 29 Oct. 27 to ther
Boston
3
iiew York
2
2
evel anti
T.ichno
At1Lalta
Chicago
St. Louis
ciap1 is
Kansas City
.1)allas
San 1rciscc
Total..
viNo
.1.1.•••
1
6
1
OMNI
ON OM
••••••11,
15
1n
122
145
7
45
108
102
31
HiPS AND Cce
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