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FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD X-7968 J u l y 26, 1934. SUBJECT; Examination of S t a t e Member Banks i n Connection w i t h t h e Required C e r t i f i c a t i o n t o t h e F e d e r a l Deposit Insurance C o r p o r a t i o n . Dear S i r : There i s i n c l o s e d f o r your i n f o r m a t i o n a copy of a l e t t e r which t h e Board has addressed t o t h e F e d e r a l Reserve Agent a t t h e F e d e r a l Reserve Bank of St# Louis with r e g a r d t o t h e examination of S t a t e member banks i n connect i o n w i t h t h e r e q u i r e d c e r t i f i c a t i o n t o t h e F e d e r a l Deposit Insurance C o r p o r a t i o n , i n view of t h e amendment, t o S e c t i o n 12 B of t h e F e d e r a l Reserve Act extending t h e time w i t h i n which t h e permanent i n s u r a n c e fund may become e f f e c t i v e . Very t r u l y ypurs, Chester M o r r i l l , Secretary. Inclosure. http://fraser.stlouisfed.org/TO ALL Federal Reserve Bank of St. Louis FEDERAL RESERVE AGENTS X-7968-a COPY J u l y 26, 1934. Mr. John 8 . Wood., Federal Reserve Agent# Federal Reserve Bank of S t . Louis, S t . Louis, Mo. Dear Mr. Wood: Reference i s made to your l e t t e r of J u l y 17, 1934, r e g a r d ing examinations of S t a t e member banks i n connection with the r e quired c e r t i f i c a t i o n t o the Federal Deposit Insurance Corporation and r e q u e s t i n g a u t h o r i z a t i o n t o make such examinations commencing October 1, 1934. The Board f e e l s t h a t r e p o r t s of examination made as of October 1, 1934, or subsequent t h e r e t o , may p r o p e r l y be used as a b a s i s f o r c e r t i f i c a t i o n i n connection with a p p l i c a t i o n s of S t a t e member banks f o r t h e purchase of stock i n the Federal Deposit Insurance Corporation p r i o r t o J u l y 1, 1935, provided, of course, such r e p o r t s i n d i c a t e t h a t a thorough examination has been made and f a i r l y r e p r e sent the c o n d i t i o n of t h e banks at t h e time of c e r t i f i c a t i o n . Before making f i n a l recommendations with regard t o c e r t i f i c a t i o n , t h e r e f o r e , i t w i l l be expected t h a t you w i l l review the r e p o r t s of any examinat i o n s made p r i o r t o January 1, 1935, f o r t h e purpose of determining whether, s i n c e t h e date of examination, t h e r e has been any change i n the condition of the bank which would render t h e q u e s t i o n of c e r t i f i cation doubtful. In case of doubt, e i t h e r as t o whether t h e c o n d i t i o n Mr. John S. Wood -2- X-7968-a of the bank as r e f l e c t e d i n the r e p o r t of examination warrants c e r t i f i c a t i o n t o t h e Federal Deposit Insurance Corporation, or whether t h e r e has been any subsequent change i n the c ondition of the bank which would r a i s e a q u e s t i o n as t o whether t h e a s s e t s of the bank are adequate t o enable i t t o meet a l l of i t s l i a b i l i t i e s t o deposit o r s and other c r e d i t o r s , another examination should be made t o serve as a b a s i s f o r t h e r e q u i r e d c e r t i f i c a t i o n * I t i s assumed t h a t the program of examinations w i l l be so arranged t h a t whenever p o s s i b l e examinations of banks dependent upon seasonal l i q u i d a t i o n w i l l be made subsequent t o the l i q u i d a t i o n period# Very t r u l y yours, (Signed) Chester M o r r i l l Chester M o r r i l l , Secretary.
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