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tto si* to to *pfhdtiam t»m w^f ^^ ^fc-^^w ^^^p^W^((p ^•Wiv^P^t'^^^ ^jPJp jwflNrljatUl U w lit of the XT* ft* **• IT or of to not f tito June 22, 1938 Appraisal of Bonds in Baa appreciation nor depreciation in Group I securities srill be sliosii iu tlie report. Heither **ill "be ta!<con into account la figuring set sound capital of the bank. Group X securities are mrket&ble obligations in nhXah the investment characteristic* are not distinctly or predominantly speculative, fhis group includes general a^rket obligations in the four highest grades an^.-aerated securi^V7 ties of e .uiraleat value. The securities in Group II tl oe valued at the anr&rage a&rket price for eighteen" ontiis just preceding examination and fifty per cenj 1 ^* the net depreciation net sound e&oital. will 'be deducted in comput Group II securities a investsent character general four highest, lent se in which, the are distinctly or (his group includes ns in grades below the ted securities of Present p r a c t i o ^ j i i l be contiaaed under which net depreciation in th%K*$curltles in Group XXX and Group IT are classified as Group III s4cu#lti*s: IT securities: arities in Stoclts. Present practice will be continued under which premims on securities purchased at a premim wast be anortized. Present practice of listing s l l securities and showing their •book value will be contiaaed. June 22, 1938 The treatment of Securities Profits in Bank: foaalmations. Until losses have been wriftSET off and adequate reserves established, the use of p r o f i t j ^ p a the sale of securities for any purpose other than tb^M, will not be approred. Preeeat practice willJ^eontiaaed under vhich estimated losses oast ^e charged off^^^ Present practice vl£K«e continued under which the establishment and mainte^^pe of adequate reserves* including reserves against the seewAles account, are encouraged. Present practiceVl^H be contiimed under which speculation in securities Jfrr criticised and penalized. o «*9%|*a» 9£ t t e olaooif io&tioa «*!%«• awsioXy. *SIow»* fit «a* HIM followlag taf.Uitioiw tteraf wilX b* ?riat«4 in ia It* wktoli Uf wstory aotsd in tfc* i n fflffih 1» I«MI XQNMMI %IMI In to «U««if HA If tUlnatf of tb» awifeti? oar #mdor««rt of III* of U AmfttfoX m& l a is t o ftOt3tar&£$JOJ| If* SOt 00 Off* praotloo w i l l bo IV <>#»• **o t m %3ao too toi^Xo «f !I» or of ntt? pot « m of U» total of III atemo « 4 Ul »/ IV «L«ro to iiiinlrt U ootmttf tbo **t oowA o»pit*i of *mm 23, IX «t Urn fKf t ) » «»t I HI ami. tow IV
