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FEDERAL RESERVE BOARD WASHINGTON DIVISION OF EXAMINATIONS September 20, 1954. Mr. Marriner S. Eccles, Special Assistant to the Secretary of the Treasury, Washington, D.C* Dear lir. Eccles: I have read with interest your memorandum of August SI, 1954, and the copies of correspondence which were attached relating to the duplication of examinations, with special reference to the case of the Bank of Spring City, Spring City, Tennessee, and wish to thank you for calling the matter to my attention. The Bank of Spring City is a subsidiary of Hamilton National Associates, Inc., a holding company affiliate, and is not a member of the Federal Reserve System. It was, however, examined as of April 5, 1954, by examiners for the Federal Reserve Bank of Atlanta. This examination was part of a simultaneous examination of Hamilton National Associates, Inc., and its affiliates, pursuant to the provisions of the Banking Act of 1955, in order to enable the Federal Reserve Board to pass upon the application of the holding company affiliate for a voting permit. By previous arrangement, the State authorities participated in this examination, and a copy of the report of examination made by the examiners for the Federal Reserve Bank was furnished to the national bank examiner because of a possible affiliation of the Bank of Spring City with the Hamilton National Bank, Chattanooga, Tennessee, which is closely associated with Hamilton National Associates, Inc. Mr* Ifarriner S. Eccles - Z. The matter of proper examination procedure in carrying out the duties imposed on the Federal Reserve Board by law is one which has been engaging our special attention, as well as that of the Federal Reserve Agents, and much has been accomplished In the past year in developing a policy in this respect. In this connection I might state that it is the general policy in all twelve Fedaral reserve districts for examinations by the Federal reserve banks to be made, whenever possible, in conjunction with examinations by the State authorities, thus minimizing as much as possible any duplication in work and inconvenience to the banks examined* Very truly yours, Leolu Paulger, Chief, Division of Examinations.
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