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99 A meeting of the Executive Committee of the Federal Reserve Board Was held in the office of the Federal Reserve Board on .jednesday, August 5, 1931, at 11:30 a. in. PRESENT: Mr. Mr, Mr. Mr. Mr. Tames, Presiding. Hamlin Miller Magee McClelland, Assistant Secretary. The Assistant Secretary presented various matters of business which were considered and acted upon by the Committee as follows: Natter approved on initials by the Executive Committee yesterday, naillelY, application of the American Express Bank and Trust Company, New York, ilew York, for membership in the Federal Reserve System and for 9,000 shares Of stock in the Federal Reserve Bank of New York; the application having been aPProved subject to the regular conditions of membership set out in. Regulation Series of 1930. Formally approved. Matter approved on initials by the Executive Committee yesterday, 114111e1Y, letter dated August 3rd from the Assistant Federal Reserve Agent at New York, recommending that M±. Harold V. Roelse, Manager of the Reports 1/ePartment, be designated as Acting Assistant Federal Reserve Agent for the 13er1od ending September 15, 1931. Formally alp-Droved. Telegram dated July 30th from the Governor of the Federal Reserve Bank clt New York, advising that Mr. Albert H. Wiggin, of the Chase National Bank of he CitY of New York, has agreed to serve as the American member of the Cbrobattee being set up by the Bank for International Settlements in accordance Ilrit4 the invitation issued by the recent London Conference. Noted, 8/5/31 Telegram dated August 1st from the Governor of the Yederal Reserve &Ink of NOW 'York, ouoting a statement issued to the press on that date with ' legard to the agreement of the Federal Reserve Bank to Purchase from the Bank Of England up to the equivalent of .125,000,000 of prima commercial bills. Noted. Telegram dated August 1st, 3rd and 4th from the Federal Reserve Bank Or. New York, with respect to the rate of sterling exchange on those dates and iclirising that no purchases of sterling were made by the Federal Reserve Bank Xuly 31st, August 1st, 3rd or 4th. Noted. Letter dated July 30th from the Secretary of the Federal Reserve Bank Of New York, advising that the Board of Directors, at a meeting on that date, Inade no change in the bank's existing schedule of rates of discount and purchase. Without objection, noted with approval. Telegram dated August 5th from the Chairman of the Federal Reserve Bank °I 'Philadelphia, advising that no quorum was present for a meeting of the Board est Directors on that date and no action was taken with respect to the bank's Elieting schedule of rates of discount and purchase. Noted. Report of Committee on Salaries and Expenditures on lists submitted bY the Federal Reserve Banks of Boston and Philadelphia of employees for whom the directors authorized leaves of absence with pay, on account of illness, c1411-12g the month of Xuly, where the total of such absences since January 1, 1931) has exceeded thirty days; the Board's Comnittee recommending approval of tile salary payments involved. Approved, 8/5/31 —3-. Letter dated July 29th from the Acting Comptroller of the Currency, zecozzalendin.L; - approval of the following increases in salaries of National Bank E xaminers: Name H. Sims Walter E. Julius Otto F. Wilde Maurice L. Barnett, Jr. E. N. Wright From To r5,600 3,500 3,600 2,400 3,000 ::;6,000 3,900 3,900 3,000 4,200 Approved. Letter dated July 31st from Deputy Governor Crane of the Federal Reserve 8:4111k of New York, transmitting results of a compilation of short-term indebted11888 between New York banks and bankers and foreign clients as of Ally 22, 1931. Ordered circulated. Draft of reply to letter dated July 31st from the Federal Reserve Aa'ent at Richmond with further reference to the Acting Assistant Federal Reagents now serving at the Baltimore and Charlotte Branches in connection With the custody of unissued Federal Reserve notes; the proposed reply stating tliElt the Board does not desire to have the present temporary arrangements discontinued until such time as, without disadvantage to the bank, the stocks 4ni3sued Federal Reserve notes held at the branches can be handled along tlis lines set out in the Board's letter of November 25, 1930, (X-6766) and, that until such time the Board would prefer to have 1.1r. R. L. 4°11sYcutt continue to serve as Acting Assistant Federal Reserve Agent at Charlotte rather than to replace him by an employee of the Charlotte branch as Ileested by the Federal Reserve Agent. Upon motion, the proposed letter was approved. Eemorandum dated August 3rd from the Fiscal Agent submitting a voucher °r the Federal Reserve Bank of Cleveland in the anount of 554.17 covering eZloenses and allowances of six employees of that bank detailed to assist the B°41-rd ts examiner in the recent examination of the Federal Reserve Bank of Chicago, Upon motion, payment of the amount stated was approved. Letter dated August 3rd from the Assistant Federal Reserve Agent at New York, advising of newspaper reports of a proposed merger of the Straus Ilational Bank and Trust Company, the Continental Bank and Trust Company and the International Trust Company, all member banks, of New York City; the 4asistant Federal Reserve Agent stating that the Continental Bank and Trust C°1111)eily is a strong, well managed bank, whereas, the other two institutions bc)th constitute problems for which absorption by some stronger bank would seem to be the only satisfactory solution. After discussion, upon motion, it to reouest the Assistant Federal voted was to furnish a more detailed Agent Reserve report regarding the terms and conditions of the proposed merger and the extent of the eliminations which will be made in connection therewith, as well as definite information as to whether the merger is to be effected, as is indicated, under the present charter of the Continental Bank and Trust Company, thereby making unnecessary a new application for membership in the System on behalf of the merged institution. Letter dated August 1st from the Assistant Federal Reserve Agent at 17111W York, advising that the New Jersey Title Guarantee and Trust Company of 41'seY City, N. T., a member bank, took over, as at the close of business 3\11Y '61st, the banking business and -liabilities to creditors of the Labor 4tional Bank of Jersey City, wich has long been in an unsatisfactory con1tion; the Assistant Federal Reserve Agent expressing the opinion that the 158orption does not conflict with the conditions of menbership accepted by the New Jersey Title Guarantee and Trust Company. 103 8/5/31 -5.After discussion regarding the condition of the assets of the Labor National Bank, as disclosed by the report of its last examination, it was voted to reouest the Assistant Federal Reserve Agent for information as to whether and in what manner the criticized assets of the national bank have been provided for in connection with its absorption by the trust company. Report of Committee on District No. 8 on letter dated July 29th from -2ederal Reserve Agent at St. Louis, with reference to the instructions of the Board regarding stock in the flercantile-Comm.erce National Bank and the South Side National Bank of St. Louis owned by the I:ercantile-Commerce Bank elld Trust Company and the Lafayette-South Side Bank and Trust Company, zeePectively; the Agent reporting that it will take some little time for the ltanaeement of the two institutions to work out plans for divesting themselves ot the ownership of the stock in ouestion, due to vacation absences, etc., and 11-Q.Cesting that the natter be held in abeyance until the first part of Septenter. Upon recommendation of the Committee on District No. 8, it was voted to approve the suggestion of the Federal Reserve Agent. Application for permission to exercise unlimited trust powers by the nllion National Bank of Lenoir, North Carolina, to which the Board, on ebrilary 27, 1931, granted trust powers on condition that they would be e ezeised only in the handling of such trusts as might be taken over from the NationAl Bank of Lenoir and no new business would be accepted pending l'Ill'ther consideration by he Board after the Union National Bank had been e llinined by the Comptroller of the Currency; together with a report thereon, 114sed upon an examination of the Union. National Bank made as at the close of 48iness Suly 3rd, recoumending that the application be approved on condition 8/5/31 -6- 104 that the officer who is to have charge of the trust department spend a easonable time with one of the bank's correspondents engaged in trust business, accillainting himself with tho details of fiduciary work. After discussion, unon motion, it was voted to grant unlimited trust powers to the Union Yationnl Bank of Lenoir, on the condition recited above. Memorandum dated July 29th from the Board's Examiner in Charge, sub"tag a report of an examination of the Federal Reserve Bank of Kansas City 41 d its Branches made as at the close of business June 30, 1931. Ordered circulated. The Assistant Secretary then presented the following telegram just received from the Governor of the Federal Reserve Bank of New York: "Referrin: to our participation for f25,000,000 in the credit of :A00,000,000 to the Reichsbarh which matures August sixth we have been advised by the Bank for International Settlements that the Reichsbank desires to renew this credit for three months and that the Bank of England, the Bank of France, and the Bank for International Settlements are prepared to extend their Participations in the credit if the Federal Reserve Bank of New York will do likewise. At a meeting of the executive committee Of our Board of Directors yesterday afternoon it was voted, subject to the approval of the Federal Reserve Board, %o authorize the officers of this bank to arrange for the renewal of this credit for a period not exceeding three months. In taking this action it was understood by the Directors that the renewal would be on the same terms and conditions as the original credit, except that the rate charged should be the discount rate of the Reichsbank or seven percent, whichever is lower, it being further understood that if the other participants in the credit would not agree to fix the rate suggested by this bank, the question of rate should be referred back to the Board of Directors on the ground that uniformity of rate charged by the different participants in the credit is most important. Will you please advise me as promptly as may be convenient whether the Federal Reserve Board approves of this action of our Directors in authorizing the Officers to arrange this renewal for a period not exceeding three months." After discussion, upon motion, it was voted to oroprove the action of the New York directors in authorizing the officers to arrange for a renewal, for a period not exceeding three months, of the bank's participation for'.25,000,000 in the credit of .)100,000,000 to the Reichsbank, which matures on August 6th. 8/5/31 11131001178 OF STODING COMMInmaS: Dated, Ally 30th Recommending Changes in stock at Federal Reserve Banks, 31at as set forth in the Auxiliary Minute Book of this date. Recommendations approved. Aug. 1st 3rd 5th Di%.te.dlo Aug. 3rd Recommending approval of the application of Mr. R. M. Kelly, for permission to serve at the same time as director of the First National Bank of Longview, Texas, and as director of the Commercial National Bank of Shreveport, Louisiana. Approved. The meeting adjourned at 12:45 p. Assistant Secretary. 106 iph ‘t.V (Executive Committee) AUXILIARY MIt\TUTES (August 5, 1931.) ei)orts of Standing Committee dated july 30th, 31st, August 1st, 3rd, and 5ths recommending changes in stock at :federal Reserve Banks, approved as follows: Shares 41 -2,2L-ications for ORIGIITAL Stock: District No. 2. 21rst National Bank in Highland Falls, N. Y. District ro. 4. Pirst National Bank in Brockway, Brockway, Pa. -41/411.alt_1_qg5 for ADDITIaNAL Stock: D istrict 1,111st National Bank in Lodi, L. X. ,, ;r0311an National Bank, Cro3han, N. Y. -irst National Bank of Trenton, Barneveld, vPirst National Bank, Port Jefferson, N. Y. alleY Stream. National Bank & Trust Co., Valley Stream, N. Y. r. Y. District No, 4. City Trust & Savings Bank, Akron, Ohio. ' 410-- erchants Trust Co., 1,Assillon, Ohio. 1J,:illion Trust Company, Newark, Ohio. ,ot/L-aercial Banking & Trust Co., Wooster, Ohio. Pirst National Bank, Zanesville, Ohio. I'l7zence Savings & "rust Co., New Castle, Penna. District No. 6* Pizst National Bank, Kingston, Tenn. Diat"jo7. 7,;111ena Trust & Savings Bank, Alpena, & Lerchants National Bank & Trust Company, Benton, Harbor Mich. 120 120 60 Total 60 180 3 30 14 30 30 107 150 2 3 1 00 30 276 2 2 120 60 Total 160 565 150 150 60 60 4P,1192.tions for SURRENDER of Stock: orway National Bank, Norway, Thine. (V.L.Abs, by Casco Mercantile Trust Co., Portland, Maine.) 4211'st National Bank., Gallitzin, Pa. National Bank in Gallitzin) (II.L.Suc. by 7irst 8/5/31 ,(4.) A lications for SURRIITDER of Stock: (Conttd) District No. 4. PeoPles National Bank, Delmont, Pa. (Insolvent) aEPS.AatliaL2L. Ile wItia Cartney National Bank Green Bay. Wis. (Insolvent) egan National Bank, Waukegan, Ill. (Insolvent) Gr eenville National BRTtk„ Greenville, Mich. (Insolvent) Pirst National Bank, Weyauwega. Ade. (V.L.Abs. by Farners and Merchants Bank) District No. 11. CitY National Bank, Sweetwater, Texas. (V.L.Abs. by First National Bank) cl°11unbia National Bank, Portland, Oregon.. (V.L.Abs. by AMerican National Bank of Portland) Shares 24 24 450 240 36 21 747 66 66 198 Total 198 1,245 Assistant Secretary. %roved: - Tile/ober, Executive 'Committee.
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