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FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD X-7628 October 3, 1933. SUBJECT $ Procedure i n Connection with Applications for Membership. Dear S i r s 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 b e i n g a d d r e s s e d t o t h e Fede r a l Reserve Agent a t New York w i t h r e g a r d t o procedure i n c o n n e c t i o n w i t h a p p l i c a t i o n s f o r membership i n t h e F e d e r a l Reserve System. Very t r u l y yours Chester M o r r i l l Secretary. Inclosure. TO ALL FEDERAL RESERVE AGENTS. , COPY 324 X-7628-a October 2, 1933* Mr® J . He Case* F e d e r a l Reserve Agent, F e d e r a l Reserve Bank of New York, New York, N# Y* Dear Mr• Case: Reference i s made t o your l e t t e r dated September 2, 1933, r e l a t i v e t o t h e procedure i n c o n n e c t i o n with a p p l i c a t i o n s f o r memb e r s h i p i n t h e F e d e r a l Reserve System* The Board a g r e e s wi t h you t h a t i t i s d e s i r a b l e t o avoid as f a r as p o s s i b l e h o l d i n g a p p l i c a t i o n s i n abeyance f o r c o n s i d e r a b l e p e r i o d s of time pending d i s c u s s i o n s r e g a r d i n g p o s s i b l e r e v i s i o n s of p l a n s of r e o r g a n i z a t i o n or p o s s i b l e c o r r e c t i o n s of u n s a t i s f a c t o r y c o n d i t i o n s by o t h e r means• I t i s n o t e d t h a t you b e l i e v e t h a t t h e r e would be l e s s room f o r m i s u n d e r s t a n d i n g and p o s s i b l e c o n t r o v e r s y i f , as f a r as poss i b l e , a l l a p p l i c a t i o n s f o r membership which a r e r e c e i v e d by you be e i t h e r ( l ) promptly forwarded t o t h e F e d e r a l Reserve Board, whether your recommendation i s f a v o r a b l e or u n f a v o r a b l e , o r , (2) d e f i n i t e l y and promptly withdrawn by t h e a p p l y i n g bank i f i t des i r e s t o do so because d i s c u s s i o n s with your o f f i c e r s have i n d i c a t e d t o t h e o f f i c e r s and d i r e c t o r s of t h e a p p l y i n g bank t h a t t h e a p p l i c a t i o n w i l l p r o b a b l y not be g r a n t e d . Of t h e two a l t e r n a t i v e s which you s u g g e s t , i t seems more d e s i r a b l e t h a t t h e applying bank withdraw i t s a p p l i c a t i o n i f your i n v e s t i g a t i o n i n d i c a t e s t h a t t h e c o n d i t i o n of t h e bank i s such t h a t your committee would not f e e l j u s t i f i e d i n recommending t h a t t h e Mr. J . Case a p p l i c a t i o n be g r a n t e d . X-7628-a -2- Of course* i f i n any case t h e a p p l y i n g bank r e q u e s t s t h a t i t s a p p l i c a t i o n be submitted t o the F e d e r a l Reserve Board, the Board w i l l be glad t o c o n s i d e r t h e a p p l i c a t i o n upon r e c e i p t of f u l l i n f o r m a t i o n as t o a l l of t h e f a c t s i n t h e case and t h e recommendation of t h e Federal Reserve Agent, t o g e t h e r w i t h t h a t of t h e committee of h i s bank, as t o t h e a c t i o n which should be taken# Very t r u l y y o u r s , (Signed) L. P. Bethea L. P. Bethea, Assistant Secretary.
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