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570 A meeting of the Board of Governors of the Federal Reserve System was held in Washington on Saturday, April 17, 1937, at 11:00 a.m. PRESENT: Mr. Broderick Mr. Szymczak Mr. McKee Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman Consideration was given to each of the matters hereinafter reto and the action stated with respect thereto was taken by the tocr.d: Memorandum dated April 16, 1937, from Mr. Morrill referring to the understanding on which the temporary appointment of Mr. Sampson H. Base as a voucher clerk in the Secretary's office was made on April 17, 1935: arld stating that Mr. Bass was reexamined on October 29, 1936, and 4111 13, 1937, and that on the last report the doctor had stated that the di agnosis of the case was the same as a year ago. The memorandum r __ ecnu -44ended, for the reasons stated, that Mr. Bass' temporary appointbe extended with the understanding that he will not become a memb r of the Retirement System and that a further recommendation will be made the Board by the Secretary's office before the end of the year on th basis of circumstances existing at that time. Approved unanimously. Letter to Mr. Hamilton, President of the Federal Reserve Bank ansas CitY, reading as follows: 571 4/17/37 -2"Reference is made to your letter of April 9 advising that Mr. Joseph E. Olson, Managing Director of the Denver Branch, is not in the best of health and that the board of directors of bank has approved, subject to the approval of the Board of G Governors, overnors, the request of Mr. Olson for one month's leave of absence in addition to his regular vacation period in order that he may make a trip to northern Europe. "The Board of Governors will interpose no objection to the ranting of one month's leave of absence to Mr. Olson for the above purpose in addition to the regular vacation period." Approved unanimously. Letter to Mr. Sargent, Vice President of the Federal Reserve Bank of San Francisco, reading as follows: "Reference is made to your letter of April 1, 1937, advising that the 'Cowlitz Valley Bank', Kelso, Washington, had filed an a pplication for permission to retire t2,000 of its outstanding capital debentures held by the Reconstruction Finance Cor1?orati0n 9 and that the bank had been advised that no objection to such retirement was interposed. "In this connection, reference is made to the Board's telegram of August 19, 1936, advising that it was unwilling to apIlove at that time a retirement of capital debentures but that would be glad to reconsider the matter after another examination_ of the bank had been made if the situation at that time 7re such that you were willing to submit a favorable recommenda1;11. Reference is also made to the Board's telegram of July 30, 4._;6) interposing no objection to a proposed retirement of capidebentures by the Citizens State Bank, Puyallup, Washington, which you were advised that the Board's position in that matter , was based upon the facts and circumstances involved in the L'Ilciti;cular case and was not intended to establish a precedent, th any similar cases which arise should be submitted to the ,Focard for its consideration. cora Both the Kelso and Puyallup cases involved a question of bejliance with the capital requirements imposed on State member t,o.. 8 10Y the Federal Reserve Act, the Board having previously liZen the position that it is contrary to the technical requirebel ts of the Act for a State member bank to reduce its capital inl% the amount required for the organization of a national bank the p he Place in which the State bank is located. Whether or not quir-°ard would require compliance with the technical legal rernel , Its in any such instance is a matter for its determination light of all the circumstances involved in the particular '-• Such reductions except in the case of banks located in , Z j 572 4/17/37 "torns of not more than 3,000 population, are not regarded as being within the scope of the authority heretofore given the reserve banks to approve on the Board's behalf, and, therefore, should be submitted to the Board before a capital reduction is effected. In the circumstances, however, the Board ratifies Your action in interposi ng no objection to the retirement by the Cowlitz Valley Bank, Kelso, Washington, of $2,000 of its capital debentures." Approved unanimously. Letter to Mr. J. F. T. O'Connor, Comptroller of the Currency, reading as follows: "Pursuant to the suggestion made in your letter of April 8, the proposed changes in the member bank call report form have been presented to the Board of Governors and the Board ns approved the changes, subject to the concurrence by your oifice and by the Federal Deposit Insurance Corporation. bers"A copy of the Board's Form 105 used by State bank memin submitting condition reports, with the proposed changes indicated thereon as tentatively approved by the Board of Govtill°rs, is attached. For your convenience, there is also atbacued a copy of your Form 2130 on which similar changes have made. You will note that Schedule B has been eliminated tent atively from the Board's Form 105. The reasons for this given in the attached memorandum. The Board recently approved a revision in the loan classification called for by the ;verm used by member banks in 101 leading cities in submitting haeklY reports to the Federal Reserve banks. This change, which been discussed with Mr. Folger, will be put into effect in the fr weekly report as of May 12. The changes in the loan classisj iati°n as adopted for the weekly report have been included in ed1; 11e E of the call report form. port 'As you understand, the proposed changes in the call reof,, form were all reviewed thoroughly with Mr. Folger of your 0011-71ce before the report form was submitted to the Board of forn°rs. After action has been taken by your office on the FeF 't is intended to discuss the proposed changes with the in_eral Deposit Insurance Corporation with the object of bringfo,about, if practicable, uniformity in the condition report used by all three Federal agencies. As you know, the Board ueed ,_is particularly anxious to have the call report forms be 'V State bank members and by national banks continue to ,1115f°M. It is also desirable that the call report forms use1 ' tio DY the Board and by the Federal Deposit Insurance Corporaa be the same in order that State authorities may adopt 573 4/17/37 -47similar forms and thus obviate the necessity for State banks to prepare reports on different forms for submission to State and Federal authorities, and particularly to avoid the dupli?ate publication of reports submitted to State and Federal auhorities which differ in form." Approved unanimously. Thereupon the meeting adjourned. APPftved: Member.
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