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2550 A Meeting of the Executive Committee of the Federal Reserve Board 17E8 held in Washington on Saturday, August 18, 1934, at 11 a. In. PRESENT: Mr. Thomas, Chairman of the Executive Committee Mr. Hamlin Mr. Tames 111r. D3rrill, Secretary Consideration was given to a memorandum dated August 17, 1934, from *.P4IrrY, I.ssistant Director of the Division of Research and Statistics, 811111litttag a Preliminary drart of Regulation T, to be promulgated by the leral Reserve Board pursuant to the provisions of the Securities Exchange Of 1934i, dealing with the extension and maintenance of credit by brokers, cler3, and members of securities exchanges, and recommending that the draft be tra nsiqitted as 30011 as possible to the Federal reserve banks for the pur13 (31' Obtaining criticism and suggestions. After discussion, the Committee approved the transmission to the Federal reserve banks of copies of the preliminary draft of Regulation T, with a letter reading as follows: T ... "There is enclosed herewith a preliminary draft of liegulation Lie"; EXten3ion and Eaintenance of Credit by Brokers, Dealers, and or ' er3 of Securities Exchanges. There are also enclosed drafts to Proposed agreement to be signed by nonmember banks wishing to ealifY under the Securities Exchange Act of 1934 to make loans r°kers, and certain related documents. You will note that these are preliminary drafts and that they e,re t rit &t for publication. It is the Board's desire to have the bonef fulf and free criticisms of these drafts and suggestions as to j tre neir improvement in any respect that may seem desirable. You tiv re quested therefore informally to submit copies to representawho "01 securities exchanges in your District and to other persons It ;are in your judgment qualified to offer useful suggestions. suj s requested that you obtain suggestions and criticisms from I3on",Persons in writing and transmit the originals thereof to the Iro r`'. as soon as they are received and that, in addition thereto, ti nfurnish to the Board in writing your own criticisms and sugges°-3 and the substance of any additional critici5ms and suggestions 2551 "which you may receive verbally from other sources. "It is also suggested that if possible you arrange for a c°11ference to which you would invite representatives of the exeheng-s and at which the substance and form of the regulation v rIlld be discussed. ';;hile summary reports of the proceedings „slleh conferences should be transmitted to the Board, it is '4cn intended that these should take the place of the written _Xaments requested. Ilienever practicable, it will be appreci„?d if You will notify the Board of any general conference of l'"is character in time for members of the Board or its staff to attend if they desire to do so. th. "You will note that the margin requirements prescribed by Aels regulation are those outlined in the Securities Exchange Bot of 1934. Attention is called, however, to the fact that the „Fd has authority to prescribe different margin requirements r: that the inclusion of the statutory formula in this preillarY draft of the regulation is not to be taken as indicating til : t the Board has decided to promulgate this particular standard. the regulation must become effective October 1, and ties interested should have prior to such date as much time a8 'les r„, Possible to become familiar with the new regulation, you are 0;q1lested to have all suggestions and criticisms in the hands 40,_ the Board at the earliest possible moment, and in any event 6 later than September 1." The Committee then considered and acted upon the following matters: or Letter dated Auc-ust 16, 1934, from Nr. Roelse, Assistant Secretary the Pederal Reserve Bank of New York, advising that, at a meeting of the f directors on that date, no change was made in the bank's existing e °f rates of discount and purchase. Without objection, noted with approval. TeleCraphic reply on August 17, 1934, approved by three members of t11(1 8°ard, to a letter dated August 16 from Lir. Austin, Chairman of the see eserve Bank of Ehiladelphia, stating that at a meeting of the Of ai rectors of the bank, held on August 15, the action of the execuer, fllittee Of the bank was approved, in fixing a charge of 1/2 of 1,0 l'tIllent for six months to be entered into by the Federal reserve t° ta„ 1:rom the Farmers hank and Trust Company and the Lancaster 2552 8/18/34 -3- CQ1111tY Bank, both of Lancaster, Pennsylvania, 80,3 of a loan they ipz '"03e to make jointly to the Simplex Paper Box Corporation of Lititz PenneYlvania, and that the rate is submitted to the Board for its e°11zideration . The reply stated that the Board approves the comitment l'ete of 1/2 of 1,, in connection with the loan referred to. Approved. Telegram dated August 17, 1034, approved by three members of the to viilliams, Federal Reserve Agent at the Federal Reserve Bank eland, reading as follows: r "Answering your letter August 15, 1034 relating to temo:Y a ssignment of D. Fulton of your bank to assist alli 13°ard'e Division of Examinations, Board appreciates your 8;flt of cooperation in matter and will be glad to have you It'ulton to Jashington at earliest available date on z7oe terms as outlined in our letter of June seventh, that will reimburse bank for his necessary traveling expenses, ae. ; J. rY and six dollars per diem while in Washington. Kindly '71ee when he will report." Approved. Telegram to Mr. Austin, 7ederal Reserve Agent at the Federal Re4I"e Beak of l'hiladelphia, referring to the application of the "American 8'13uak €111c1 Trust Company Of Hazleton", Hazleton, Pennsylvania, for nermis4441 -0 withdraw immediately from membership in the Federal Reserve System, 8tatik' tic)tlee or that the Board waives the usual requirement of six months, intention to withdraw and that, accordingly, upon surrender of th'‘I‘ C ND tlezal reserve bank 411 of Hazleton, the 4(1 to ancel stock issued to the :imerican Bank and Trust Federal Reserve Bank of Philadelphia is autho- such stock and make a refund thereon. Approved. 2553 Letter dated ;a1ust 1?, 1934, approved by three members of the il°aN, to "The Franklin National Sank", Franklin, New Hampshire, readas follows: "The Federal Reserve Board has given consideration to YeUr application for permission to exercise certain fiduciary 13 4 ers, and, in addition to the authority heretofore granted " u° act as trustee, grants you authority to act, when not in e°htravention of State or local law, as executor, or in any ether fiduciary capacity in which State banks, trust companies other corporations which come into competition with national li nke are permitted to act under the laws of the State of New tnlIshire, the exercise of all such rights to be subject to 0"e Provisions of the Federal Reserve Act and the regulations the Federal Reserve Board. t. "This letter will be your authority to exercise the addi1 e0011a1 fiduciary powers set forth above. A formal certificate ering such authorization will be forwarded w to you in due -°11rse.t? r Approved. Lle morandum dated _1117ust 16, 1934, from Li'. Smead, Chief of the 147131.ori or Bank Operation,), submitting a letter oated August 14 from the SeretEkrY of the TreasurY stating that the Government of Soviet Socialist 41'111511es, at the time of its recognition by the United states, assigned t0 et1-11 Go7ernment various classes or assets and claims of the State of 11(1,a requestinc that the Board obtain, in that connection, from StIlte bezic and trust company members of the Federal Reserve System in the cities the information called for in the questionnaire attached to tile letter. The memorandum. stated that advice has been received that the ecIDtroller of the Currency sent out a similar request yesterday to naticnal ricl that the Federal Deposit Insurance Corporation has been asked to 441 ebnilar request to banks belonging to the temporary insurance fund blq /lot to the Federal eserve system, and that it is recommended that, 2554 6/18/34 Ille 'ec°rdance with the Treasury's request, the Board ash the 99 State member baro in the 12 cities listed below to furnish the information called we questionnaire prepared by the Treasury Department: St. Louis Baltimore Boston PittsburGh San Francisco Seattle New York ChicaGo Philadelphia Detroit Los Angeles Cleveland Approved. Letters dated _uzust 17, 1934, approved by three members of the ' 13°I ' cl ' to- aPplicants for permits under the Clayton Act, advisinr, of approval C/r tj aPplications as follov,s: 3.°11-11 F. Evans, for permission to serve at the same time as a 1„plrector of the National Bank of America in Paterson, Paterson, Zew Jersey, as a director of the Haledon National Bank, Haledon, ' ' ce olv Jersey, and as a director of the Fair Lawn-Radburn Trust 131PanY, Fair Lawn, New Xersey. ti aire-ar:: D. Ibbotson, for permission to serve at the same time as a 1(3r of The Oneida National Bank and Trust Company of Utica, ' Tjti Baft, New York, as a director and officer of The First National dl.: 01. - prinEs, Richfield ST,rings, New York, and as a ' 4 ector and officer of The Morris Plan Company of Utica, Utica, l'4ew York. ' ! re aTh°Elas Brown Rudd, for permission to serve at the same time , s director of The Hayes National Bank of Clinton, Clinton, IT I7 York, and as a director of The Eorris Plan Cor,pany of Utica, ' s ulee', New York. Mr. xob Sinnott, for permission to serve at the same time as 60. 1.. 1 1%,, ! ,ire , Of The Oneida National Bank and Trust Company of Utica, ,4 ' New York, and as a director and officer of The Morris Plan 04° Of Utica, Utica, New York. 144'• T (lir "84es McGinn, for permission to serve at the same time as a aladector of The North Creek National Bank, North Creek, New York, ziellas a director of The Hamilton County National Bank of Wells, 4"ss New York. 2555 8/18/34 -6- lb. Xoseph Merritt, for permission to serve at the same time as a director and officer of The Goshen National Bank, Goshen, New Ibrk, and as a director of The National Bank of Orange County of Goshen, Goshen, New York. : C. S. Patterson, for permission to serve at the same time as 141'director and officer of The National Bank of Tuxedo, Tuxedo, 811 Yorks and as a director of The National Bank of Orange County °tGoahen, Goshen, New York. Herbert Senger, for permission to serve at the same time as director and officer of The National Bank of Orange County of t!!hen, Goshen, New York, and as a director of The Goshen National Goshen, New York. Approved. There were then presented the following applications for changes in litC) °I' a Federal reserve bnilk. Diatlications for ADDITIONAL Stock: 61'1 "140. 2. 48-17 Park National Bank & Trust Co., 11434(1.1)1117 Park, New Zersey ci:L611141aigua National Bank & Trust Co., The -411daigua, New York ens National Bank & Trust Company _Citizens °t On Oneonta, New York Shares 90 180 60 Total 330 330 Approved. Thereupon the meeting adjourned. ( 3 6'LLU-A. Secretary. 4pDroved: Ch Executive Committee.
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