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~_~-;~-~F~.~-*~--bCCI1" I UNITED STATES EXECUTIVE I GOVERNMENT OFFICERS President Herbert Clark Hoover (elected Nov. 1928, Inaugurated March 4, 1929) Secretary of Treasury Andrew W. Mellon (appointed March 4, 1921, served until Feb. 12, 1932) Comptroller of Currency J. Secretary of State Henry L. Stimson Secretary of War Secretary of Navy Secretary of Interior Secretary of APricultur* Secretary of Commerce Secretary of Labor Postmaster General Attorney General W. Pole (date of appointment Nov. 21, 1928, resigned Sept. 20, 1932) Patrick J. Hurley Charles F. Adams Ray L. Wilbur Arthur M. Hyde Robert P. Lamont William N. Doak Walter F. Brown William D. Mitchell 1931 U. S. 1 GOVERNMENT SENATE Banking and Currency Committee 72nd Congress Republicans NORBECK, Peter BROOKHART, Smith W. GOLDSBOBDUGH, Phillips Lee TOWNSEND, Jr. John G. YWALCOTT, Frederic C. BLAINE, John J. CAREY, Robert D. DAVIS, James J. - -- - 0 Democrats South Dakota Iowa Maryland *Delaware Connecticut Wisconsin Wyoming Pennsylvania FLETCHER, Duncan U. GLASS, Carter WAGNER, Robert F. BARKLEY, Alben W. CONNALLY, Tom BULKLEY, Robert J. MORRISON, Cameron Florida Virginia New York Kentucky Texas Ohio N. Carolina 1931 December U.S. G O V E RNM E N T HOUSE OF REPRESENTATIVES H Banking and Currency Committee 71st Congress Republicans McFADDEN, Louis T. STRONG, James G. LUCE, Robert (FENN, E. Hart) CAMPBELL, Guy E. BEEDY, Carroll L. HOOPER, Joseph L. GOODWIN, Godfrey G. (LETTS, F. D.) (FORT, Franklin W.) GOLDER, Benjamin M. SEIBERLING, Francis PRATT Ruth (DUNBAR, James W.) Democrats Pennsylvania Kansas Massachusetts Connecticut Pennsylvania Maine Michigan Minnesota Iowa New Jersey Pennsylvania Ohio New York Indiana STEAGALL, Henry B. BRAND, Charles H. STEVENSON, William F. GOLDSBOROUGH, T. Alan PRALL, Anning S. BUSBY, Jeff REILLY, Michael K. Names in brackets ( ) will not be Members of Seventy-second Congress. Alabama Georgia South Carolina Maryland New York Mississippi Wisconsin 1931 FEDERAL RESERVE BOARD Ex Officio Members A. J. W. Mellon, Secretary of the Treasury Chairman h. Pole, Comptroller of the Currency Eugene Meyer, Governor , Vice Governor Floyd R, Harrison, Asst. to Gov. (appointed on Sept. 16) Adolph C. Miller Charles S. Hamlin George R. James Wayland W. Magee, (appointed May 5) Secretary's Office Walter L. Eddy, Secretary (resigned May 31) Chester Morrill, Secretary ffective Oct. 7) E. M. Mc Clelland, Asst. Secretary J. C. Noell, Asst. Secretary Fiscal Agent W. M. Imlay, Fiscal Agent Division of Examination Chief, and Federal Reserve Examiner Counsel's Office Walter Wyatt, General Counsel Division of Research and Statistics E. A. Goldenweiser, Director Carl E. Parry, Asst. Director Division of Bank Operations E. L. Smead, Chief Ii FEDERAL RESERVE SYSTEM FEDERAL ADVISORY COUNCIL S1931 District No. (Boston) Herbert K. Hallett District No. (New York) R. H. Treman District No. (Philadelphia) Howard A. Loeb District No. (Cleveland) J. A. House District No. (Richmond) John Poole District No. (Atlanta) District No. (Chicago) District No. (St. Louis) V. W. Smith, President District No. (Minneapolis) Geo. H. Prince District No. (Kansas City) District No. S(Dallas) District No. i (San Francisco) *J.B. Butler (resigned) *John K. Ottley Melvin A. Traylor, Vice President V. S. McLucas *B. A. McKinney (resigned) *J. H. Frost Henry M. Robinson Walter Lichtenstein, Secretary (over) NOTE:- The above list is correct as of December 31, 1931. In the earlier part of the year Mr. B. A. McKinney was president of the council and representative of the eleventh Federal Reserve district, but in November, 1931, he became governor of the Federal Reserve Bank of Dallas, Tex., and therefore severed his relations with the Federal Advisory Council. Prior to this the executive committee was composed of Messrs. B. A. McKinney, W. W. Smith, H. A. Loeb, M. A. Traylor, G. H. Prince, and W. S. McLucas. Another change was due to the fact that Mr. J. P. Butler, representative of the sixth Federal reserve district, resigned during the year and his place was taken by Mr. Ottley FEDERAL RESERVE SYSTEM OPEN MARKET POLICY CONFERENCE Composed of 12 Governors of Federal Reserve Banks: 1. Boston - Roy A. Young 7. Chicago J. B. McDougal 2. New York - G. L. Harrison 8. St. Louis William Mc. Martin 3. Philadelphia - George W. Norris 9. Minneapolis W. B. Oeery 4. Cleveland - E. R. Fancher 10. Kansas City W. J. Bailey 5. Richmond - George J. Seay 11. Dallas Lynn P. Talley (to Oct .a 6. Atlanta - Eugene R. Black 12. San Francisco - B. A. MeKinney John U. Calkins 1931 Federal Reserve Bank of Boston (Dist. 1) OFFICERS Governor - Roy A. Young Deputy Governors - Chairman and Federal Reserve Agent Deputy Chairman W. W. Paddock - - Frederic H. Curtiss Owen D. Young 1931 Federal Reserve Bank of Boston (Dist. 1) DIRECTORS Class A Term Expires Dec. 31 CHAMBERLAIN, Frederick S. (New Britain, Conn.) RIPLEY, Alfred L. (Boston, Mass.) KENNARD, Edward S. (Rumford, Me.) 1931 1932 1933 (re-elected) Class B BOWMAN, Albert C. (Springfield, Vt.) ALLEN, Philip R. (East Walpole, Mass.) BEMIS, Albert Farwell (Boston, Mass.) 1931 1932 1933 (re-elected) Class C MERRIMAN, Chas. H. (Providence, R. I.) CURTISS, Frederic H. (Boston Mass.) Chairman and FR Agent HOLLIS, Allen (Concord, N.H.5 Deputy Chairman 1931 1932 1933 (re-appointed) 1931 Federal Reserve Bank of New York (Dist. 2) OFFICERS Governor George L. Deputy Governors W. J. A. L. Chairman and Federal Reserve Agent Deputy Chairman R. E. W. F. Harrison Burgess Crane Gilbart Sailer J. Herbert Case - Owen D. Young E. R. Kenzel Walter S. Logan L. R. Rounds Fede ral Reserve-Bank-of NEW YORK 1931 (Dist. 2) DIRECTORS Dec. 31 CLASS A Term Began Term E n ded MITCHELL, Charlea . (Now York) 1/1/29 1931 STEPHENS, Thomas W. (Montclair) 1/1/30 1932 1/1/31 1933 WOODIN, William H. (New York) 1/1/29 1931 WHITMARSH, Theodore F. (New York) 1/1/30 1932 1/1/31 1933 (reelected) 1/1/30 1932 (Deputy Chairman) 2/27/30 1931 (Chairman) 1/1/31 1933 (reappointed) WARNER, David C. (Endicott) CLASS B REYBURN, Samuel V. (New York) CLASS C YOUNG, Owen D. CASE, J. (New York) Herbert (Plainfield) WOOLLEY, Clarence M. (Greenwich) 1931 Federal Reserve Bank of Philadelphia (Dist. 3) OFFICERS Governor - George W. Norris Deputy Governor - William H. Hutt Chairman and Federal Reserve Agent - R. L. Austin Deputy Chairman Alba B. - Johnson 1931 Federal Reserve Bank of Philadelphia (Dist. 3) DIRECTORS Class A COSGRCVE, John C. (Hastings, Pa.) WAYNE, Jos. (Jr.) Philadelphia, Pa.) REILY, Geo. W. (Harrisburg, Pa.) Term Expires 1931 1932 1933 (re-elected) Class B DORRANCE, A. C. (Camden, N.J.) STOUT, C. F. C. (Philadelphia, Pa.) SEWALL, Arthur W. (Philadelphia, Pa.) 1933 (re-elected) 1931 1932 Class C JOHNSON, Alba B. (Philadelphia, Pa.) Deputy Chairman CANNON, H. L. (Bridgeville, Del.) AUSTIN, R. L. (Philadelphia, Pa.) Chairman and FR Agent 1933 (re-appointed) 1931 1932 1931 Federal Reserve Bank of Cleveland (Dist. OFFICERS Governor E. R. Fancher Deputy Governors M. J. Fleming Frank J. Zurlinden Chairman and Federal Reserve Agent - George De Camp Deputy Chairman - L. B. Williams h) Federal Reserve Bank of Cleveland (Dist. h) DIRECTORS Tern Class A LAMBERTON, Chess (Franklin, Pa.) WA1)ROP, Robert (Pittsburgh, Pa.) SAMS, 0. N. (Hillsboro, Ohio) Expires Dec. 31 1931 1932 1933 (re-elected) Class B WRIGHT, R. P. (Erie, Pa.) CRABSS, George D. (Cincinnati, Ohio) GALVIN, J. E. (Lima, Ohio) 1931 1932 1933 (re-elected) Class C WILLIAMS, L. B. (Cleveland, Ohio) Deputy Chairman DeCAMP, Geo (Cleveland, Ohio) Chairman and FR Agent KNIGHT, W.h. (Toledo, Ohio) 1931 1932 1933 Federal Reserve Bank of Richmond (Dist. 5) OFFICERS Governor Deputy Governors - George J. - R. H. Broaddus C. A. Peple Seay Chairman and Federal Reserve Agent - William W. Hoxton Deputy Chairman - Frederic A. Delano I__~ I Federal Reserve Bank of Richmond ( Dist. 5) DIRECTORS Term Expires Dec. 31 Class A BRASWELL, James C.(Rocky Mount, N.C) JOHNSON, L. E. (Alderson, W.Va.) RIEMAN, Charles E, (Batlimore, Md.) 1931 1932 1933 (re-elected) Class B GRAHAM, Edwin C. (Washington, D. COKER, D. R. (Hartsville, S.C.) ADDISON, W. M. (Richmond, Va.) C.) 1931 1932 1933 (re-elected) Class C LASSITER, Robt. (Charlotte, N.C.) HOXTON, Wm. W. (Richmond, Va.) Chairman and FR Agent DELANO, Frederic A.(Washington, D.C.) Deputy Chairman 1931 1932 1933 (re-appointed) __1_____1___~____3_~eC_~__ 1931 Federal Reserve Bank of Atlanta (Dist. 6) OFFICERS Governor Eugene R. Black Deputy Governors W. S. Johns H. F. Conniff Chairman and Federal Reserve Agent - Oscar Newton Deputy Chairman - W. H. Kettig c~ ~~-~: 1_ 1931 Federal Reserve Bank of Atlanta (Dist. 6) DIRECTORS Class A MELVIN, E.C. (Selma, Ala.) WARE, G. G. (Leesburg, Fla.) YOUNG, H. Lane (Atlanta, Ga.) Term Expires Dec. 31 1931 1932 1933 (re-elected) Class B HILL, J. B. (Nashville, Tenn.) SIMON, Leon C. (New Orleans, La.) McCRARY, J. A. (Decatur, Ga.) 1931 1932 1933 (re-elected) Class C KETTIG, W. H. (Birmingham, Ala.) Deputy Chairman NEWTON, Oscar (Atlanta, Ga.) Chairman and FR Agent HARRIS, George S. (Atlanta, Ga.) 1931 1932 1933 (re-appointed) --------~--~------~-' ~3lr r Federal Reserve Bank of Chicago (Dist. 7) OFFICERS Governor - James B. Mc Dougal Deputy Governors C. R. Mc Kay John H. Blair J. H. Dillard Chairman and Federal Reserve Agent - Eugene M. Stevens Deputy Chairman - James Simpson I )r ;r ~I~ i- Federal Reserve Bank of Chicago (Dist. 7) DIRECTORS Term Expires Class A ESTBERG, Edward R. (Waukesha, Wis.) SCHALLER, George J. (Storm Lake, Iowa) REYNOLDS,George M. (Chicago, Ill.) 1931 1932 1933 (re-elected) Class B CRAPO, Stanford T. (Dtroit, Mich.) FEUSTEL, Robert M. (Fort Wayne, Ind.) BABB. Max W. (Milwaukee, Wis.) 1931 1932 1933 (re-elected) Class C BALL, Frank C. (Muncie, Ind.) James (Chicago, Ill.) Deputy Chairman SIMPSON, STEVENS, Eugene M. (Chicago, Ill.) Chairman and FR Agent 1931 1932 1933 (re-elected) ____l~e~l Federal Reserve Bank of St. Louis (Dist. 8) OFFICERS - Governor Deputy Governor - Chairman and Federal Reserve Agent Deputy Chairman William Mc C. Martin - - .M. Attebery John S. hood John W. Boehne Federal Reserve Bank of St. Louis (Dist. 8) DIRECTORS Class A MARTIN, John C. (Salem, Ill.) LONSDALE, John G. (St. Louis, Mo.) NAHM, Max B.(Bowling Green, Ky.) Term Expires Dec. 31 1931 1932 1933 (re-elected) Class B PLUNKETT,W. B. (Little Rock, Ark.) STURDIVANT, M. P. (Glendora, Miss.) HARRIS, James W. (St. Louis, Mo.) 1931 1932 1933 (re-elected) Class C DILLARD, Paul (Memphis, Tenm.) BOEHNE, John W. (Evansville, Ind.) Deputy Chairman WOOD, John S. (St. Louis, Mo.) Chairman and FR Agent 1931 1932 1933 (re-appointed) 1931 Federal Reserve Bank of Minneapolis (Dist. 9) OFFICERS Governor Deputy Governors - W. B. Geery Harry Yaeger H. I. Ziemer - Chairman and Federal Reserve Agent - John R. Mitchell Deputy Chairman - Homer P. Clark Federal Reserve Bank of Minneapolis (Dist. 9) DIRECTORS Class A LEEMAN, P. J. (Minneapolis, Minn.) KIBBEE, H.R. (Mitchell, S. Dak.) HANSEN, H. C. (Churchs Ferry, N. Dak.) Term Expires Dec. 31 1931 1932 (elected) 1933 (elected) Class B WASHBURN, W. 0. (St. Paul, Minn.) O'CONNELL, J E. (Helena, Mont.) OWEN, John S. (Eau Claire, Wis.) 1931 1932 (elected) 1933 (re-elected) Class C McCORMICK, George W. (Menominee, Mich.) 1931 MITCHELL, John R. (Minneapolis, Minn.) Chairman and FR Agent 1932 CLARK, Homer P. (St. Paul, Minn.) Deputy Chairman 1933 (re-appointed) Federal Reserve Bank of Kansas City (Dist. 10) OFFICERS Governor - W. J. Deputy Governors C. A. Worthington J. W. Helm Chairman and Federal Reserve Agent Deputy Chairman Bailey - M. L. Mc Clure William L. Petrikin _ _I I_ _ ___ ______ Federal Reserve Bank of Kansas City (Dist. 10) DIRECTORS Class A SPONABLE, Frank W. (Paola, Kans.) MULLANEY, E. E. (Hill City, Kans.) PARKS, C. C. (Denver, Colo.) Term Expires Dec. 31 1931 1932 1933 (re-elected) Class B BERNARDIN, J. M. (Kansas City, Mo.) PHILLIPS, L. E. (Bartleaville, Okla.) HOSFORD, Willard D. (Omaha, Nebr.) 1931 1932 1933 (elected) Class C PETRIKIN, William L. (Denver, Colo.) Deputy Chairman McCLURE, M. L. (Kansas City, Mo.) Chairman and FR Agent BROWN, Edward P. (Daiey, Nebr.) 1931 1932 1933 (appointed) Federal Reserve Bank of Dallas (Dist. 11) OFFICERS Governor - Lynn P. Talley (resigned October 1) B. A. McKinney Deputy Governors R. R. Gilbert R. B. Coleman William A. Day Chairman and Federal Reserve Agent - C C.Walsh Deputy Chairman - S. B. Perkins Federal Reserve Bank of Dallas (Dist. 11) DIRECTORS Class A PATRICK, W. H. (Clarendon, Tex.) WILLIAMS, J. P. (Mineral Wells, Tex.) HARDING, R. E. (Fort Worth, Tex.) Term Expires Dec. 31 1931 1932 1933 (elected) Class B CLEVELAND, A. S. (Houston, Tex.) CULBERTSON. J. J. (Paris Tex.) MILAM, J. R. (Waco, Tex.) 1931 1932 1933 (re-elected) Class C WALSH, C. C. (Dallas, Tex.) Chairman and FR Agent BROWN, E. R. (Dallas Texas) PERKINS, S. B. (Dallas, Texas) Deputy Chairman 1931 1932 1933 _ ~ ___~ Federal Reserve Bank of San Francisco (Dist. 12) OFFICERS Governor - Jno. U. Calkins Deputy Governors - William A. Day Ira Clerk Chairman and Federal Reserve Agent - Isaac B. Newton Deputy Chairman - ialton N. Moore ____I_____ ___~ I_~_ I Federal Reserve Bank of San Francisco (Dist. 12) DIRECTORS Class A McINTOSH, C. K. (San Francisco, Calif.) RAMSAY, T. H. (San Francisco, Calif.) POWELL, Keith (Woodburn, Oreg.) Term Expires Dec. 31 1931 1932 1933 (elected) Class B COX,Elmer H. (Madera, Calif.) DOHRMANN, A. B. C. (San Francisco, Calif.) McNAGHTON, Malcolm (Los Angeles, Calif.) 1931 1932 1933 Class C SPROULE, William (San Francisco, Calif.) 1931 NEWTON, Isaac B. (San Francisco, Calif.) Chairman and FR Agentl932 MOORE, Walton N. (San Francisco, Calif.) Deputy Chairman 1933 HEARINGS 1931 Jan. 19-23, Mar. 2 26,29,30 HG U.S.Congress. Senate. Committee on banking and 2565 currency. .U21 Operation of the National and Federal reserve (1931) banking systems: hearings ...71st cong.,3d sees. pursnant to S.Res.71, a resolution to make a com plete survey of the national and Federal reserve banking systems. Jan. 19-23,26,29,30-Mar.2,1931. 7 pts. Wash., C-ovt.ptg.off.,1931. Joseph.A. (Supt.ofBanks,N.Y.) Jan.29, op.2 7 1-293 Case, J.H. (F.R.Bk.,N.Y.)Jan.22,'31 pp.106-12 Hmlin,C.S. (Bd.mbr.) Jan23,'31, pp. 163-181 Testimony: Broderick, F.R.Ed.L. HarrisonG.L.(N.Y.F.R.Pk.) J on20 pp.31-10 6 Miller,A.C. pp.123-1 6 3 Pole,J.W. (Compt)2-30 Platt,E. pp.209-226 a HEARINGS Jan. 27,28,31 Feb. 2,3,5,6,7 U.S.ConTres. Senate. Committee on banking and currency. Nomination of Eugene Meyer to be a member of the Federal reserve board: hearings ... HG 2562 .P4U7 (1931) 71st cong.,3d sees. on Jan 27,28,31, Feb.2,3, 5,6, and 7, 1931. Wash.,Govt.ptg.off.,1931. 339 p. Testimony: Meyer, Eugene Jr. Jan.2 pp.79-96 " 31 Feb. 2 3 S " 5 F.R.Bd.L. "97-131 " " " 133-194 185-228 259-262 Feb. 6 pp.27 0-271 " 3C)2-323 -I -- F~- -- - iQ'91-32 Dec. 18-19,21-22 HEARINGS HJ 259 .A2 Creation of a Reconstruction Finance Corporation: 1931-32 HEARINGS before a subcommittee ... 72nd cong., 1st seas. on S.1, a bill to provide emergency financing facilities for banks and other financial institutions and for other purposes... Dec. 18, 19, 21, 22, 1931. Wash., Govt.ptg.off., 1932 229 D. Dec. 18, pp. 6-37 Testimong: Meyer, Eugene Dec. 19? pp. 66-75 Harrison, G.L. Mills, Ogden (SecTeas) Dec. 19, pp. 39-66 SUS.Congress. committee. F.R.Bd.L. Senate. Banking and currency . w HEARINGS 1931-2 Dec. 18,1931 Jan.5-7, 1932 HJ U.S.Congress. House. Banking and currency 259 committee. .A2 HEARINGS corporation: Reconstruction finance 1931-2 5060 H.R. bills the ...72nd cong., 1st sess. on and H.R.5116, to provide emergency financing facilities lor banks and other financial insti tutions and for other purposes, Dec. 18, 1931 Wash. Govt.ptg.off., 1932. and Jan. 5, 6, 7, 1932. 186 p. Testimony: F.R.Bd.L. Meyer, Eugene Dec. 18 pp. 10-64 1931 13.202, Federal Reserve bank as agent of forwarding bank.--A State member bank, in possession of the State Secretary of Banking, t of a I national' n .to recover the brw-ight uit atg med made by the former bank with the latter. Defend k an iount of checks drawn on the lRaint the Oet:off to l with the.defendant for collection. Th #ecks h for collec 1 Reserve bapk by the defe the Fia The a r pimen Sbank hid presented them to the pla nk. The ion as pay ent therefor, a draft of tlnE bank. I the .th..s... draft"vas dishonored as a result deposit ~ defendant' ,. however, Meanwhile, s deposited with tal ofW 'with th accouiit of the plaiiSt before the made n _a credit the defendant for colletion and obliga y live ~ ti~a te l. P ai t closing of the plaintiff con that and 1sral rve bank r itc 'e tion was the draft sen sequently the Reserd lf dbf t cduld make a claim. 4tion J, Series of 1924, It was held, hoveye, that 1b agent; that the defend ll the Reserve banlract as. ld assert its right not 'aB . ant was'the pCiicip rights having inter yt the . withs j entitled to ebarge p~ -V dfendant hat iiS venedd~'~i sh~.shE;s:pre to the With f the plaintiff bank c the depos ' " set ^| tbhr£ was and before its closing ij sented unt. 4 d t of such checks against the , a, ting i ~ 161 Ao3 IcDowlt National Banks 81 Peoptoflt (193$)yffirming 103 Pj Super. 241, 158 Atl.,,29A41931). dether decisiA holding the Federal tf N T-*? http://fraser.stlouisfed.org/ tions, see 13.561; 13.562; 1.WS: id6. ri t collection Federal Reserve Bank of St. Louis banks to be agents in LITIGATION _ _ LITIGATION 'ottreated res Loa 13.603. State statute allowing prefe ig as dishonored."-Checks received4ytheTederal Resere Bank of New York for collection were trhwarded to a national bank and by that bank arged presented to the drawee bank fr'iaymeht. The drawee b draft s ad the checks lo the account of the"respective-kff" d by the ollecting on another bank in payment. The draft was iu4o hen national bank to thelFederal Reserve bankIit was c i fa Ted c. k go Federal the er paym for presented m which the k the items back to the accg be protested I | reeiveo, been checks had items. In the ^ a attempt nor nor demand with the claim n ba eeem 4 the proceeding, liquidation of the assets the t preference a or Banks pf State Superintendent allowed was preference a Such checks. the of amount closed ban; for the by State statute except in cases where the items were treated as dis lVnored by ponpayment. It was held that the act of the Federal Reserve bank in charging back the checks to the forwarding banks did not con stitute an electip to treat the items as Ashonored by nonpayment; and that therefore thabQFderal Reserve bank, under the statute, was entitled to a preferred claim. In re Jayne & Mason, 140 Misc. 822, 251 N.Y. Supp. 768 (1931). 1931 LITIGATION ,4pens.~ke 'Federal R defe'ors sti a ken. -In a suit by l&.; bank u i"ce prisory notes executed by thef Pe a natioal bank tohe plainiff, itdaas al In his iiia we ant med ~tihh1id aeived n deration foRoie of the n IiMtitled to a set-off or coU 3 9 i6ectJttJ heoipon the motion, of the plaintiff,: these 'defenses were strickfta from the an wer; and defendant appealed. It was held that if the Federal Reserve bank was, as alleged in the complaint, a hold* i%'due : course, such defenses would be un available; and that therefore they prere properly stricken from the an swer as irrelevant and immaterial. Accordingly, the order pf the al court granting the plaintiff's motion to strike was affirPed. -., Reserve Bank of Richmond v. Atmore, 200 N.C. 437, 157 S.E. 129 (19814. --- --- -- ---- RS-5242.101. Participation by Reserve bank in receipt of prefer- I ence.-Certain checks drawn on a national bank and deposited with the F ral Reerve Bank of ,jinnea s gection were forTCrded draW* bank for payment. b bank sent to the Fedeta ve bank in part paymentthereof two dri drawn on and payible ' Reserve bank. For the purpose of building up its reserve acco Reserve bank in order to meet the drafts, the national bank Ain collection items and currency to'the Reserve bank. Prior ito Iitances, the. directors o~ tt _ational bank hadc passed a re~s ~ calling for thex eon of receiver of the nati ater its ins *'b~ the amount of the iy oritl gti6K d that thoihon stituted ulaw"ilA j i tMer section 5242 of the Revised Statutes. It was h , that the piassage of the resolution by the directors of the bank copstituted an act of insolvency; and therefore the remittances to the Reserve bank should be regarded as having been made in contemplation of insolvency and as void within the statute. The court dismissed the contention that the checks sent by the Reserve bank to the national bank for collection became a trust fund, since all of such checks were drawn on the national bank and did not augment its assets. The court also dis missed the contention that the Reserve bank should be relieved of liability for the preference because it had acted merely as agent in forwardihg the checks for collection and in receiving payment. On the contrary, it was held that the Reserve bank had participated, with full knowledge of all the epential facts0 i 'iolating the provisions of the statute, and the j pqfthe lower court for the Reserve bank was therefore reversed. Hirning v. Federal Reserve Bank of Minneapolis, 52 Fed.42d) 382 (C.C.A. 8th, 1931). LITIGATION 1931 LITIGATION 11.643. Qualification as executor where testator died after con solidation.-The plaintiff and a State bank were nominated as joint, executors in a will. Before the death of the testator, the State bank s " jmatioiTiiUr i TVponi 6 ad the nati~ Bk fy as executors; and the plaintiff bro r. .e4d at upon the consolidation, the .tate ba t at the date oft the consolidation, si, State bank had nothing to wh this ground, the case was dist Case (See 11.642) in wich t consolidation and the State b consolidation ace. It case the consolid tional tor and that t on of. v. Seaboard 656 (1930), a'd.,15 , 156 855 (1931). was Hae t, the nsonal coul suce On from the orceste ounty Bank r's th had occ efore the quali d ac u fore th , t An orr, preset titled as execTy reverse. Hofheim e,, J'153 S. E , cert. den., 283 U. S. ]FEDERAL RESERVE SYSTEM 1931 January 1931 to August 1931 POLICY ACTION Apparent Intent - Expansionary Open Market Operations - Bought $130 million of Government securities (June-August). Buying rate on bankers' acceptances reduced (January-May). Discount Rate - Reduced from range of 2-31/2 to 11/2-3 percent at 11 Banks* (January-May). Surrounding Circumstances - Production declining sharply after partial recovery; stock, speculative bond, and commodity prices declining further; credit liquidation increased and currency hoarding develop ing; increasing bank failures in United States and begin ning of banking crises in Europe. Source: Joint Committee on the Economic Report Monetary Policy and the Management of the Public Debt (Patman Report) 1952, Page 218. *No change at Federal Reserve Bank of Minneapolis, where rate remained at 31/2 percent. POLICY ACTION FEDERAL RESERIVE SYSTEM 1931 October 1931 to November 1931 Apparent Intent - For other purposes acceptances at increased Open Market Operations - Bought large amount of bankers' rates. Discount Rate - Raised from range of 11/2-3 percent at 11 Banks* to 31/2-4 Federal Reserve Banks loaned freely Banks. percent at all the higher discount rates. at to member Banks Surrounding Circumstances - Gold outflow after England abandoned gold standard; declining gold reserves (due to gold outflow of $725 million in 7 weeks), increasing note circulation, and collateral requirements for notes prevented large purchases of United States securities to ease reserve position of member banks and necessitated higher rates to check with drawals of foreign balances; notwithstanding stock, bond, and commodity prices declining sharply; acceleration of currency hoarding, credit liquidation, and bank failures. Source: Joint Committee on the Economic Report Monetary Policy and the Management of the Public Debt (Patman Report) 1952, Page 218. *No change at Federal Reserve Bank of Minneapolis, where rate remained at 31/2 percent. 1931 England went off the gold standard on the 21st of September
@FedFRASER