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UNTED STATES GOE EXECUTIVE OFFICERS President - Franklin D. Roosevelt (elected Nov. 1932, inaugurated Jan. 20, 1933) Secretary of Treasury - Henry Morgenthau, Jr. (appointed Jan. 1, 1934, served until July 23, 1943) Comptroller of Currenoy - J. F. T. O'Connor (date of appointment May 11, 1933P resigned April 16, 1938) Secretary of State Secretary of War Secretary of Navy Secretary of Interior Secretary of Agriculture Secretary of Commerce Secretary of Labor Postmaster General Attorney General Cordell Hull George H. Dern Claude A. Swanson Harold L. Ickes Henry A. Wallace Daniel C. Roper Frances Perkins James A. Farley Homer S. Cummings i 1935 January U. S. G 0 V E RNM E N T HOUSE OF REPRESENTATIVES Banking and Currency Committee 74th Congress STEAGALL, Henry B. GOLDSBOROUGH, T. Alan REILLY, Michael K. HANCOCK, Frank WILLIAMS, Clyde DISNEY, Wesley E. CROSS, 0, H. SPENCE, Brent BROWN, Prentiss M. SISSON, Fred J. FARLEY, James I. MEEKS, James A. KOPPLEMANN, Herman P. SCRUGHAM, James G. __________________* __________________ Alabama HOLLISTER, John B. Ohio Maryland Wisoonsin North Carolina WOLCOTT, Jesse P. CAVICCHIA, Peter A. FISH, Jr. Hamilton Michigan New Jersey New York Missouri Oklahoma Texas Kentucky Michigan New York Indiana Illinois Connecticut Nevada 0 0 S 193r January U. S. GOVERNMENT SENATE Banking and Currency Committee 74th Congress ~LLf5 %~pak&leans FLETCHER, Duncan U. GLASS, Carter WAGNER, Robert F. BARKLEY, Alben W. BULKLEY, Rober J. GORE, Thomas P. COSTIGAN, Edward P. REYNOLDS, Robert R. BYRNES, James F. BANKHEAD, John H. McADOO, William GibbS ADAMS, Alva B. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis - Florida Virginia New York Kentucky Ohio Oklahoma Colorado North Carolina South Carolina Alabama California Colorado NORBECK, Peter TOWNSEND Jr. John G. CAREY, Robert D. COUZENS, James STEIWER, Frederick I----T South Dakota Delaware Wyoming Michigan Oregon -1 1935 FEDERAL RESERVE BC)ARD Ex Officio Members Jr. Henry Morgenthan, Secretary of the Treasury, Chairman J. F. T. O'Connor Comptroller of the Currency 1 Marriner S. Eccles, Governor* J. J. Thomas, Vice Governor* Charles S. Hamlin Adolph C. Miller George R. James M. S. Szymczak Lawrence Clayton, Assistant to the Governor Elliott L. Thurston, Special Assistant to the Governor (May 9) Division of Security Loans Secretary' s Office Carl E. Parry, Chief Chester Morrill, Secretary Philip E. Bradley, Asst. Chief (Jan 2) J. C. Noell, Asst. Secretary Division of Examinations L. P. Bethea, Asst. Secretary Leo H. Paulger, Chief S. R. Carpenter, Asst. Secretary R. F. Leonard, Asst. Chief (May 1) Counsel's Office C. E. Cagle, Asst. Chief (May 1) Walter Wyatt, General Counsel Frank J. Drinnen George B. Vest, Asst. Gen. Counsel (May 1) Federal Reserve Examiner B. Magruder Wingfield, Asst. Gen. Counsel (May 1) Division of Bank Operations Division of Research and Statistics E. L. Smead, Chief E. A. Goldenweiser, Director J. R. Van Fossen, Asst. Chief Director Asst. Lauchlin Currie, J. E. Horbett, Asst Chief (May 1) Woodlief Thomas, Asst. Director Fiscal Agent 0. E. Foulk, Fiscal Agent Josephine E. Lally, Deputy Fiscal Agent (over) *NOTE: In September 1935 the titles of Governor and Vice Governor were changed to Chairman and Vice Chairman. Therefore, the assistants to the Governor became assistants to the Chairman. The dates found in parenthesis are significant to the beginning of the term served by each. ___ ~ ~ ~ ~ ~ ~ ~ ~ Ff~A SERV __T_ S Y Sr____I___~ ____ __M~___ FEDERAL RESERVE SYSTEM FEDERAL ADVISORY COUNCIL District No. 1 (Boston) Thomas M. Steele District No. (New York) James H. Perkins District No. (Philadelphia) Howard A. Loeb, Vice President District No. (Cleveland) Arthur E. Braun District No. (Richmond) Charles M. Gohen District No. (Atlanta) H. District No. (Chicago) Solomon A. District No. (St. Louis) Walter W. Smith, President District No. (Minneapolis) Theodore Wold District No. I (Kansas City) W. T. Kemper Lane Young Smith District No. (Dallas) Joseph H. District No. (San Francisco) M. A. Arnold Frost Walter Lichtenstein, Secretary I FEDERAL RESERVE SYSTEM 1935 FEDERAL OPEN MARKET COMMITTEE Composed of 12 Governors of Federal Reserve Bankst Boston Roy A. Young 7. Chicago G. J. New York G. L. 8. St. Louis William Mc. Philadelphia George W. Norris 9. Minneapolis W. B. Geery Cleveland E. R. Fancher (d.Ja.16) M. J. Fleming 10. Kansas City George H. Hamilton 11. Dallas B. A. Richmond George J. 12. San Francisco John U. Calkins Atlanta - Harrison Sehaller Martin McKinney Seay Oscar Newton (1/164 - 1935 --Federal Reserve Bank of Boston (Dist. 1) -i~ 4 d a OFFICERS Governor R. A. Young Deputy Governors W. W. Paddock Chairman and Federal Reserve Agent F. H. Curtiss Deputy Chairman Allen Hollis ----- 1935 Federal Reserve Bank of Boston (Dist. 1) DIRECTORS Class A RIPLEY, A. L. (Boston, Mass) SEWALL, Arthur (Bath, Maine) CHAMBERLAIN, F. S. (New Britain, Conn.) Term Expires Dec. 31 1935 1936 1937 (re-elected) Class B ALLEN, P. R. (East Walpole, Mass.) FROST, E. J. (Boston, Mass.) FRENCH, E. S. (Boston, Mass.) 1935 1936 1937 (re-elected) Class C CURTISS, F. H. (Boston, Mass.) Chairman and FR Agent HOLLIS, Allen (Concord, N.H.) Deputy Chairman MERRIMAN, C. H. (Providence, R.I.) 1935 1936 1937 (re-appointed) 1935 Federal Reserve Bank of New York (Dist. 2) OFFICERS Governor Deputy Governors G. L. Harrison V. J. V. L. L. C. R. E. S. R. F. H. Burgess Crane Logan Rounds Sailer Coe Chairman and Federal Reserve Agent J. H. Case Deputy Chairman Owen D. Young FederalReserve Bank of NEW YORK (Dist. 2) 1935 DIRECTORS Term Began Dec. 31 Term Faded MILLS, EdwarLd-K. (Marriatoaa) 1/1/33 1935 BERRY, Cecil R. (Waverly) 1/1/34 1936 DAVISON, George W. (Green~rich) 1/1/35 1937 (reelected) 1/1/33 1935 (Plainfield) 1/1/34 1936 WATSON, Thomas J. (Short Hlills) 1/1/3 5 1937 (reelected) 1/1/33 1935 (Deputy Chairman) WOOLLEY, Clarence M. (Greenwich) 1/1/34 1936 CASE, J. Herbert (Plainfield) 1/1/35 1937 CLASS A CLASS B TEAGLE, Walter C. (Port Ch ester) STEVENS, Rbbert T. CLASS C YOUNG, Owen D. (New York) (reappointed) (Chairman) S1935 Federal Reserve Bank of Philadelphia (Dist. 3) OFFICERS Governor Deputy Governors Chairman and Federal Reserve Agent G. W. Norris V. H. Hutt J. S. Sinclair C .A. Mclhenny R. L. Austin Deputy Chairman 1 1935 Federal Reserve Bank of Philadelphia (Dist. 3) DIRECTORS Term Expires Dec. 31 Class A WAYNE, Joseph (Jr.) (Philadelphia, REILY, G. W. (Harrisburg, Pa.) HENNING, J.B. (Tunkhannock, Pa.) Pa.) 1935 1936 1937 (re-elected) Class B 1935 1936 1937 (re-elected) SEWALL, A. W. (Philadelphia, Pa.) DeLaCOUR, J. C. (Camden, N.J.) STOUT, C. F.C. (Philadelphia, Pa.) Class C AUSTIN, R. L. (Philadelphia, Pa.) STERN, J. D. (Philadelphia, Pa.) CANNON, H.L.(Bridgeville, Del.) Chairman and FR Agent 1935 1936 (appointed) 1937 (re-appointed) 1935 Federal Reserve Bank of Cleveland (Dist. 4) OFFICERS Governor E. R. Fancher (Died Jan. 16, 1935) M. J. Fleming (Effective Jan. 19, 1935) Deputy Governors F. J. Zurlinden H. F. Strater Acting Chairman E. S. Burke, Jr. Acting Federal Reserve Agent V. H. Deputy Chairman Vacancy Fletcher 1935 Federal Reserve Bank of Cleveland (Dist. 4) DIRECTORS Term Expires Dec. 31 Class A WARDROP, R. A. (Pittsburgh, Pa.) CONNER, B.R. (Ada, Ohio) LAMBERTON, Chess (Franklin, Pa.) 1935 1936 1937 (re-elected) Class B CRABBS, GALVIN, WRIGHT, G. D. J. E. R. P. (Cincinnati Ohio) (Lima, Ohio 5 (Erie, Pa.) 1935 1936 1937 (re-elected) Class C BURKE, E.S. (Jr.) Cleveland, Ohio) Acting Chairman KNIGHT, W.W. (Toledo, Ohio) vacancy 1935 1936 1937 1935 Federal Reserve Bank of Richmond (Dist. 5) OFFICERS Governor Deputy Governors G. J. Seay C. A. Peple R. H. Broaddus Chairman and Federal Reserve Agent W. W. Hoxton (died Dec. 20) Deputy Chairman F. A. Delano Federal Reserve Bank of Richmond (Dist. 5) r1935 DIRECTORS Class A Term Expires Dec. 31 JOHNSON, L. E. (Alderson, W. Va.) RIEMAN, C. E. (Baltimore, Md.) 1935 BRASWELL, J. C. (Rocky Mount, N.C.) 1937 (re-elected) 1936 Class B MALLOY, Edwin (Cheraw, S.C.) 1935 REED, C. C. (Richmond, Va.) HANNA, J. H. (Washington, D.C.) 1936 1937 (re-elected) Class C HOXTON, W. W. (Richmond, Va.) Chairman and FR Agent DELANO, F. A. (Washington, D.C.) Deputy Chairman LASSITER, Robert (Mooresville, N.C.) 1935 (died Dec. 20, 1935) 1936 1937 (re-appointed) 1935 Federal Reserve Bank of Atlanta (Dist. 6) OFFICERS Oscar Newton (Eff. Jan. 16, 1935) Governor H, V. Martin H. F. Conniff Deputy Governors Chairman and Federal Reserve Agent Oscar Newton (Res. Jan. 15, 1935) Deputy Chairman W. H. Kettig _I Federal Reserve Bank of Atlanta (Dist. 6) 1935 DIRECTORS Class A WARE, G. G. (Leesburg, Fla.) CLAY, R. G. (Atlanta, Ga.) COOK, W. D. (Meridian, Miss.) Term Expires Dec. 31 1935 1936 1937 (elected) Class B SIMON, L. C. (New Orleans, La.) McCRARY, J. A. (Decatur, Ga.) HALL, Fitzgerald (Nashville, Tenn.) 1935 1936 1937 (elected) Class C NEWTON, Oscar (Atlanta, Ga.) Chairman and FR Agent ALLEN, J. P. (Atlanta, Ga.) KETTIG, W. H. (Birmingham, Ala.) Deputy Chairman 1935 (Res. Jan. 15) 1936 1937 (re-appointed) r 1935 Federal Reserve Bank of Chicago (Dist. 7) OFFICERS Governor G. J. Schaller Deputy Governors H. P. Preston C. R. McKay J. H. Dillard Chairman and Federal Reserve Agent E. M. Stevens Deputy Chairman James Simpson i Federal Reserve Bank of Chicago (Dist. 7) DIRECTORS Term Expires Dec. 31 Class A WILLIAMS, F.D. (Iowa City, Iowa) LEAVELL, J. R. (Chicago, I1i.) ESTBERG, E.R.(Waukesha, Wis.) 1935 1936 1937 (re-elected) Class B NOYES, N. H.(Indianapolis, Ind.) BABB, M. W. (Milwaukee, Wis.) CRAPO. S. T. (Detroit, Mich.) 1935 1936 1937 (re-elected) Class C SIMPSON, STEVENS, Vacancy James (Chicago, E. M. (Chicago, http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis L Ill.) Ill.) Deputy Chairman Chairman and FR Agent 1935 1936 1937 1935 Federal Reserve Bank of St. Louis (Dist. 8) OFFICERS Governor W. McC. Martin Deputy Governors 0. M. Attebery J. G. McConkey Chairman and Federal Reserve Agent J. S. Wood Deputy Chairman Paul Dillard 1935 Federal Reserve Bank of St. Louis (Dist. 8) DIRECTORS Class A LONSDALE, J.G. (St. Louis, Mo.) NAHM, M. B. (Bowling, Green, Ky.) HITT, F. G. (Ziegler, Ill.) Term Expires Dec. 31 1935 1936 1937 (re-elected) Class B STURDIVANT, M. P. (Glendora, Miss.) HARRIS, J.W. (St. Louis, Mo.) PLUNKETT, W. B. (Little Rock, Ark.) 1935 1936 1937 (re-elected) Class C STANLEY, J. R. (Evansville, Ind.) WOOD, J. S. (St. Louis, Mo.) Chairman and FR Agent DILLARD, Paul, (Memphis, Tenn.) Deputy Chairman 1935 1936 1937 (re-appointed) 1935 Federal Reserve Bank of Minneapolis (Dist. 9) OFFICERS Governor Deputy Governors W. B. Geery Harry Yaeger H. I. Ziemer Chairman and Federal Reserve Agent J. Deputy Chairman H. P. Clark N. Peyton 1935 Federal Reserve Bank of Minneapolis (Dist. 9) DIRECTORS Class A KIBBEE, H. R. (Mitchell, S. Dak.) HANSEN, H. C. (Churchs Ferry, N. Dak.) GBANGAARD, M.O. (Minneapolis, Minn.) Term Expires Dec. 31 1935 1936 1937 (re-elected) Class B O'CONNELL, J. E. (Helena, Mont.) FUNK, A. P. (La Crosse, Wis.) WASHBURN, W. 0. (St. Paul, Minn.) 1935 1936 1937 (re-elected) Class C PEYTON, J. N. (Minneapolis, Minn.) Chairman and FR Agent CLARK, H. P. (St. Paul, Minn.) Deputy Chairman McCORMICK, G. W. (Menominee, Mich.) 1935 1936 1937 (re-appointed) Federal Reserve Bank of Kansas City (Dist. 10) OFFICERS Governor Deputy Governors G. H. Hamilton C. A. Worthington J. W. Helm Chairman and Federal Reserve Agent Deputy Chairman E. P. Brown Federal Reserve Bank of Kansas City (Dist. 10) DIRECTORS Class A MULLANEY, E. E. (Collyer, Kans.) PARKS, C. C. (Denver, Colo.) SPONABLE, F. W. (Paola, Kans.) Term Expires Dec. 31 1935 1936 1937 (re-elected) Class B PHILLIPS, L. E. (Bartlesville, Okla.) HOSFORD, W. D. (Omaha, Nebr.) BERNARDIN, J. M. (Kansas City, Mo.) 1935 1936 1937 (re-elected) Class C Vacancy BROWN, E. P. (Davey, Nebr.) Deputy Chairman DOOLIN, J. B. (Alva, Okla.) 1936 1937 (re-appointed) S1935 Federal Reserve Bank of Dallas (Dist. 11) OFFICERS Governor B. A. McKinney Deputy Governors R. R. Gilbert R. B. Coleman Chairman and Federal Reserve Agent C. C. Valsh Deputy Chairman S. B. Perkins _ Federal Reserve Bank of Dallas (Dist. 11) DIRECTORS Term Expires Class A MORRIS, Dec. 31 Alf. (Winnsboro, Tex.) HARDING, R. E. (Fort WVorth Tex.) HOOKS, P. E. (Itasca, Tex.5 1935 1936 1937 (elected) Class B MIDDLETON, MILAM,J. J. D. (Greenville, Tex.) R. (Waco, Tex.) CLEVELAND,A. S. (Houston, Tex.) 1935 1936 1937 (re-elected) Class C BROWN, E. R. (Dallas,Tex.) PERKINS, S. B. (Dallas, Tex.) Deputy Chairman WALSH.C.C. (Dallas, Tex.) Chairman and FR Agent 1935 1936 1937 (re-appointed) --I Federal Reserve Bank of San Francisco (Dist. 12) OFFICERS J. U. Calkins Governor Deputy Governors W. A. Day Ira Clerk Chairman and Federal Reserve Agent W. N. Moore Deputy Chairman --- - -- J 1935 Federal Reserve Bank of San Francisco (Dist. 12) DIRECTORS Class A RAMSAY, T. H. (San Francisco, Calif.) POWELL, Keith (Salem, Oreg.) McINTOSH, C. K. (San Francisco, Calif.) Tenn Expires 1935 1936 1937 (re-elected) Class B DOHRMANN, A. B. C. (San Francisco, Calif.) McNAGHTEN, Malcolm (Los Angeles, Calif.) COX, E. H. (Madera, Calif.) 1935 1936 1937 (re-elected) Class C Vacancy * MOORE, W.N. (San Francisco, Calif.) Deputy Chairman WELCH, A. P. (San Francisco, Calif.) 1936 1937(re-appointed) HEARINGS April 15,19 TT.S,Congress. Senate. Banking .nd currency committee. Nomination of Marriner S. 8ccles to be a member of the Federal Reserve Board: HEARING before a subcommittee ... 74th cong., 1st sess. on the nomination of M=rriner S. Eccles to be April a member of the Federal feserve board. Wash.,Govt.ptg.off.,1935. 15 and 19, 1935. 18 p. F.R.Bd.L. HG 2562 .A2 1935 HEARINGS 1935 Apr.19-June 3 HG TT.S.Congress. Senate. Committee on banking and 2560 currency. .A2 Banking act of 1935: hearings before a sub1935S committee .. ,. 74th cong.,lst sess. on S.1715, to arovide for the sound, effective and a bill uninterrupted operation of the banking system, Apr.19 to June 3,1935. and for other purposes. Wash .,Govt.ptg. off., 1935. (Consolidated) 2 pts. Testi- Eccles,M.S. May 10 and 13 pp. 2 79-3 2 5 mony: Haalin,C.S. (Bd.mbr) May31, pp.940-957 James,G.R. ' " May31 pp.922-931 Miller,A.C. " " May 24 pp.676-776 Morenthau,H. Jr. " 17 p). 503-509 F.R.Bd.L. O'Connor (Compt.Curr.) np.61-69; 99-178 a (BANKING ACT OF 1935) HEARINGS Feb.,Mar.,Apr* HG U.S.Congress. FTouse. Committee on banking and currency. BAnking act of 1935: hearings ... 74th cong., slet sees. on P'.R.5357, a bill to provide for 2560 .A2 1935 the sound, effective, and uninterrunted operation of the banking system, and for other nurposes. Feb. 21,22,26-28, Mar. 1,4-6,11-15,11-22,25'28. Apr. 2,9,1935. 982 p. Testimony: Wash.,Govtptg. off.,1935. /351-41 Eccles,M.S. Mar.4,pp.179-261;Mar. 14,263-350;Marl O'Connor,J.F.T.(Compt.Curr.) pp.1t'3-178; 661-703 F.R. Bd. L. 1935 LEGISLATION June 14 [PUBLIC RESOLUTION-NO. 25-74TH CONGRESS [H. J. Res. 320] , JOINT RESOLUTION which loans ,b extend from June 16, 1935, to June 16, 1938, the period withinbanks of the 1 made prior to June 16, 1933, to executive odicers of member Federal Reserh System may be renewed or tended. Resolved by the Senate and House of Representatives of the United Btates of America in Congress assembled, That subsection (g) of sec tion 22 of the Federal Reserve Act is hereby amended by striking out: "Provided, That loans heretofore made to any such officer pay be renewed or extended not more than two years from the date this para graph takes effect if in aagd with sound banking practioe and inserting in lieu thereof: officer prior to June 16, 1933 vProvide, That loans made to any.such ipay berenewed or extended for aWp d expiring not more than five ears from. auch date where the board ves that of directors of the member bqpk shall have satisfied th dIthat st of the the be J such extension (renewal h g tto red son the of$cer indebe has m tionftese findings to-be e directors iapead upon tjminute Approve6. June 14, 193 ution of of e ba . 'i 4 : 1935 June 28 LEGISLATION [PUBLIC RESOLUTION-No. 38--74TH C (8. J. Res. 1562 OINT RESOm5TI N tesolved by the Senate and Boused of Repr ne United States 4Amenrca in assemble F6ngre88 That S 1fB of 'the Federal Rem*es:Ct«- Mshamendodg. nA P. 'riking out "July 1, 1935"' *i ver it appeh NJ(l) andt ) and inserting in lieu thereof "August 81, 1985 "; and (2) by strikc ing "June 80, 1935" where it appears in the first sentbneA of the eighth paragraph of subsection (y), and inserting in lieu thereof "August 81, 1935 "; and (3) by adding to subsection (y) the folltw ing additional paragraph "The deposits in banks which are June 30, 1935, members of the fund or the fund for mutuals s continue .to be insured during such extended period to August 1935, withut liability on the part of such banks to further calls assessment." Approved, June 28, 1935. 935. August 23 "Banking Act of 1935" LEQI ... This Act amended the Federal Reserve Act with regard to: Federal deposit insurance. Maximum insurance. Assessments. Payment of interest on deposits, etc. Insurance of nonmember banks. President and vice presidents of Federal Reserve banks. Reduction in Federal Reserve bank stock to conform to reduction in member bank's surplus. Certification to Comptroller of the Currency upon change in capital stock of Federal Reserve bank. Retention of ineligible assets by converting banks. Requirements for admission to Federal Reserve System. Publication of condition reports of State member banks. Branches of State member banks. Separation of State member bank stock certificates from those of other corporations, Names of Board, governor, and vice governor. Organization of Board. For summary see Source: Supplement to statement on Evolution of Banking Legislation by Walter Wyatt, October 26, 1939. Exhibit G. -- ~,- -* 1935 . August 23 "Banking Act of 1935" cw . LEGISLATION This Act amended the Federal Reserve Act with regard to: Salaries and reappointment of Board members. Record of action by Board and Open Market Committee. Advances to member banks. Access of State banking authorities to examination reports of national bank trust departments. Limitation on loans by member banks on Government obligations. Open market operations. Indorsement or other security sufficient for Reserve bank discounts for individuals. Changes in wording of section 13b. Purchase and sale of Government obligations and Government guaranteed obligations. Discount rates of Reserve banks. Reserve requirements of member banks. Definition by Board of various classes of deposits. Deduction of "amounts due from banks" in computing reserve requirements. Payment of deposits and interest thereon by member banks. Reserves required against Government deposits. Waiver of reports of examinations of affiliates. Retirement annuities of employees in office of Comptroller of Currency. For summary see Source: Supplement to statement on Evolution of Banking Legislation by Walter Wyatt, October 26, 1939. Exhibit G. 11.935 August 23 "Banking Act of 1935" Ce* , LEGISLATION This Act amended the Federal Reserve Act with regard to: Criminal provisions clarified, extended to insured banks. Federal Deposit Insurance Corporation examiners subjected to criminal provisions. Borrowings by executive officers of member banks; elimination of criminal penalty. Restrictions on loans to affiliates relaxed. Real estate loans by national banks. Industrial loans relieved of real estate restrictions. Interlocking directorates. Reduction in stock of national bank. "Accidental" holding company affiliates eliminated. Affiliation with securities companies; exception. Interlocking relationships between member banks and securities companies. Interlocking bank directorates. Preferred stock and capital notes and debentures. Embezzlements. For summary see Source: Supplement to statement on Evolution of Banking Legislation by Exhibit G. Walter Wyatt, October 26, 1939. .i_,, _.. i:W August 23 The Banking Act of 1935, approved August 23, 1935, changed the name of the Federal Reserve Board to the Board of Governors of the Federal Reserve System and provided that the Board should be composed of seven appointive members; that the Secretary of the Treasury and the Comptroller of the Currency should continue to serve as members until February 1, 1936; that the appointive members in office on the date of that act should continue to serve until February 1, 1936, or until their successors were appointed and had qualified and that thereafter the terms of members should be 14 years and that the designation of Chairman and Vice Chairman of the Board should be for a term of four years. (See 19 POLICY ACTION FEDERAL BESERVE SYSTEM 1935 - Feb.1934 - May 1935) __.- i-; -. ___ 1935 LITIGATION *K~xut;ky tatute lu eorizing,,4ute-barfks to becowe mem ystatuU4.-ftte, bitnks and ~trust com * r, aipi~be of the Fdtl ed panies in thatjste were visions of the" Temse v Reserve System and to slub lations of the Fedeit1 ts, and er4,Reserve;Act and a Louisville Bridg~ tt Reserve Board applica Ie' comsims 0 vle S.W. (2d) 894 (1PA5 ' , 1935 9.184. Applicability of Regulation F to State member banks. The Louisville Bridge Commission issued bonds under which the Louis ra ville Trust Company acted as trustee. Pursu nto thejite th question wheter sente rt Stoi'y Jugnient Act eeral Reserve System, ' ~an ras a e t company, w igl scure the deposits of the Bridge Commission by transferring its commercial department and by setting aside specific readily e i securities in its trust department to secure their repayment. eld that the right of the depositary trust company to pledge such rpermitted by Regulation F of..the iteral to secure the. deposits lations provided that trust fun# ederal Reserve Boar~ since thoe eld by a member bank (sic) might be deposited in its comme jA t savings department to the credit of the trust department provid the bank should first deliver to the trust department, as collateral' ecu rity, bonds, notes, or certificates of indebtedness of the United Ses, or other readily marketable securities. It was pointed out that, *bile the Board's Regulation F speaks only of national banks, "it is clear that it was intended to apply to all member banks, especially when it is read in connection with that. prtion of the National Banking Act deal ing with the rights and powers of State banks as members of the Fed eral Reserve System, U.S.C. Title 12, sec. 330 (12 U.S.C.A. see 330)," (Paragraph 12 of section 9 of the Federal Reserve Act). It was held, therefore, that pursuant to the Regulation F of the Federal Reserve nm Board Oe trust company had the right to secure the deposits of "issiA4n the manner described. Louisville Bridge Commission Vit Trust ompany, 258 Ky..846, 81 S.W. (2d) 894 (1935). .i.l^trlR it should be noted t otwithstading r't t, au EB lPeral Reserv # that section, foi the eeifocement http://fraser.stlouisfed.org/ national banks only. Federal Reserve Bank of St. Louis Board to promulgt to thU,exercise of .by LITIGATION LITIGATION 1935 , 13.703. Right of set-off denied.-Under the Board's Regulation J, by a Federal Reserve bank for colleetionire held by it 'ieefks.received such checks are presented Jy the as agent only. Accordi and the latter bank reitve a Fe lI!Reserve bank to ality of debts between the drawee draft in payment, there i bank andthe Federal R r bank as would justify the Reserve bank in offsetting the draft against the drawee's reserve account. AnMirson v. Federal Reserve Bank of Boston, 69 Fed', (2d) 319 (C.C.A. 5th, 1934), a 1 ; cert. den., 293 U. S. 562' 1935 Nor. Bank ~c~nld tim*b f that against a ai tent *it Ai Ahed the ase of Early v. Federal Reserve case the c e of VWlch was that at the groun ~ao (See 13fo the MBIrve bank on Regulation J e bank's reserve balance checks saMt to the latter for 4 awH eop of facts in the AndersowF W charge jton. LITIGATION 1935 SLiabili$y of Federal Reservejank fM1 ed e a. e of k.---Checks djawn oi nk h a Federal Reserve bank. The naton 1 presente them and in payment therefor mI 'eaeled ho4ored re aeeount with the Federal Reserve bank, The its .inst to a bra~h of the Federal Reserve bank which set it dliled aside oi port to the rain office and entry on the bodis thereof. Sub ouenwkto receipt of~ e draft by the branch of the Federal IReaerve before the transactio^hiad been reported to the Fegal Re 1 , asl bbnk, the nai~~;,bank pas suspended and a receiver 4pointed and notice of this f 4 me to th 1 Reserve ban The Federal Reserve bank thereupon, sought a l ed an interg der for the purpose of determining hethe A a l of the checks was owed by the Federal Reserve bae.l 1 r to the receiver of the national bank a pa was held that the action of, h o ral eacting upon and conse L' dre e e k wi as effective as if such der eserve bank itself; that the taken by, as ha refore been consented to prior to the nation ank's Jture; a that the checkholders and not the re e t+uiional ba creditors of the Reserve bank for tf rep'eented ~fA by . Anderson v. Federal Reserve Bank of Boston, 69 Fed. ( .1 c .A. 5th, 1934), affirming 2 Fed. Supp. 25 (D.C. Fla., 1932), c .den., 293 U.S. 562 (1935). LITIGATION 7 20. Bonds 1eposited with IWcrve bank as security for loan ' s decedent deposi d certain Liberty bonds ,memberbank.-Plai cate of deposit provid ther onal b and lor the reti o on the ie pi ing W the b a s otice. The certifitate did not refer to artj dged ,he bonds with the Federal Reserve bai as bonds. brought an action of detinue or alaint collat ecovery of the bonds, alleging for Federal R " agai national bank for safekeeping. wi had%2~ that that the bonds e did nt suffiiently sh It wA held that ; that even if suh was the case, ll re'deposited " in du# holder of the b4j bH e s.aP rvi.,e f.e 'Bragg' yederat not t ,uiTi urse;'and that therefore plaintiff c i serve Bank of Richmond, 14 Va. 30, 178 S.E. 680 (1935). 1935 LITIGATION 13.2750. Unavailing against Reserve bank as holder -in due course.-Certain notes executed by defendant to-a member bank were tiff Federal Beserve baMk as collateral sedurity ,ansferred to tii When the member bank at eesief mank. r a loan by t of e defendaitin its w0rsa dloseddoors, t eral Reserve h'mn t notes, the dlen accont. In a suit by t -off. IFwas l~'d, however, that the Fedel l ant filed a claratio er in due course to the extent of its lien, and Reserve ba* was the that therefore the defen t WjT not entitled tq set off the amount of the deposit to its Predit in the clod member ank as against the plaintiff v. Gray-United F Reserve bank. Federal Rese rve ln of S 194 N.E. 709 (Mass. 1935). For a case involving substantially similar facts and holdi ,se..Federal R erve Bank of Richmond y, uffu, 210 N.Xt (1936). And see seive bank as hbiiP ligests of cases immediately Iing. due course, see 132720 et to the same iml R. As to staiW 82 Re LITIGATION 'unt.-The 25(b).101. Suits involving less than jurisdictional Federal , purpose of this section was to grant full right ot recourse ave come importan igenci courts to Federal eserve banks whi and currcy. AM ~j|g og of the Federal G e banl polves J'p .Ciingly, 41" Idial . 24 (T) ' ct scri h tb ede o a r t B r Jeriiit,4W reported). e -irtue of t,11 court. riBTh fd that an ate court did no, this hat action. Fede iB (Qpf.A. 4th, 19 rve 1935 See also 1934 - # 11.501 LITIATION
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