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A meeting of the Federal deserve Board was held in the office of the II Fdera Aeserve Board on Thursday, Decer:iber 11th, at 11:20 a. In: PRESENT: Governor Leyer Mr. Hamlin Mr. Mr. James Mr. Pole Mr. KcUlelland, Assistant Secretary. 2he Governor read the following resolution prepared in accordance with the request of the Executive Committee on Jecember 2, which was adopted and ellered spread upon the minutes of the Board: "WHEAEAS, on Eovember 28th, 1930, occurred the death of Honorable Edward H. Cunningham, who for more than seven years had served as a member of the Federal Reserve Board, and 'WHELIEAS, during this entire period, through his unfailing kindness and courtesy, he endeared himself to all of the other members of the Board, "WHadEAS, his colleagues in dealing with the many important Problems which confronted them during that time placed a strong reliance in his judgment, and "WHER;1AS, he brought to his work on the Federal ..eserve Board a rich store of experience, knowledge and wisdom, derived from his long and successful contact with rural life in America both as farmer and administrator, and exhibited rare qualities of character and independence, "THEREFORE, BE 1T RESOLVED, That the members of the Federal Aeserve Board place upon record a deep sense of loss at the passing Of a close friend and a colleague who spared no effort nor talent in his service of the Federal Aeserve System." The Assistant Secretary was instructed to have a copy of the resolution engrossed and forwarded to 1:.rs. Uunningham. He was also instructed to furnish the Federal deserve Bank of Aichmond with a copy in accordance with a request received from the bank. Sir. Hamlin then referred to the fiduciary application of the 1.ational 4Pltal Bank of ,iashington, D. O., on which the Board deferred action on 44117 " ath pending a meeting of the full Board for consideration of the question 4s is ' 0 the minimum capital which the Board would require of a national ban': in the 1)istrict of (;olumbia before it would grant permission to exercise trust 12/11/30 -2- Powers. Mr. Hamlin stated that the Board's General Counsel has received a letter from the President of the applicant bank to the effect that one of its largest depositors is desirous of having the bank act as registrar of its stock and that if the bank cannot act in this capacity its customer will Probably take its business to a bank which can accommodate it. At Mr. Hamlin's kg gestion, Mr. ayatt, the Board's General Counsel was called into the meet- ing. A discussion followed, after which, upon motion, it was voted to approve the application of the National Capital Bank of dashington, D. C., for permission to act as Registrar of stocks and Bonds, no action being taken on the other powers applied for. At this point hr. dyatt left the meeting. Aeport of Exeautive Committee on letter datea December 5th from the 441 'Q. 4eserve ligent at Cleveland submitting and recommending approval of te aPplication of the dest Toledo National Bank, Toledo, Ohio, an outlying klititution, for a reduction in its reserve requirements from lOd to 7, of 411151341 deposits; the Board's Committee recommending, inasmuch as the 418t itlatiOn lIot is located over three miles fram the financial center of Toledo, doing a correspondent banking business, and serves a community qientele, that the application be approved. Upon motion, it was unanimously voted to approve a reduction in the reserve requirements of the Vest Toledo National Bank from lOd to 7d of demand deposits. The Governor then referred to the special order of business for the 1114ting, namely, reports of the various District Committees of the Board tea °Illtending appointments of Class C Directors of the Federal Reserve Banks, 12/11/60 the desi_nation of Chairmen and Deputy Chairmen for the year 1931, and the aPpointment of directors at the various branches of the Federal deserve Banks. 4Ie individual reports of the Committees were then considered and the following actions were taken: Upon motion, Mr. Allen Hollis was reappointed as Class C Director Of the Federal deserve Bank of Boston for a term of three years ber;inning January 1, 1951 and was redesignated as Deputy Chairman of the Board of Directors of the bank for the year 1931. Upon motion, Mr. Frederic H. Curtiss, was redesignated as Chairman Of the Board of Directors of the Boston Bank and as Federal deserve .,gent for the year 1931. Upon Motion, Mr. Clarence M. „looney was reappointed as Class 0 Diretor of the Federal deserve Bank of 1,ew York for a term of three years beginning January 1, 1931. Upon motion, Mr. J. H. Case was redesignated as Chairman of the Board of Directors of the New York bank and as Federal deserve Agent for the year 1931. Upon motion, Mr. Onen J. Young was redesignated as Deputy Chairman Of the Board of Directors of the hew York Bank for the year 1931. in connection with the Committee deport on the Federal deserve 43ank of hew York Governor Meyer stated that he has communicated with 1.1r. Case regarding the appointment by the Board of a Director at the Buffalo Branch for a term of three years beginning January 1, 1931 and will saumit his recol„mendation in the near future. Upon motion, Mr. Alba B. Johnson was reappointed as Class . Director of the Federal deserve Bank of 2hiladelphia for a term of three years beginning January 1, 1961 and was redesif4nated as Deputy (,hairman of the Board of Directors of the bank for the year 1931. Upon motion, Mr. d. L. Austin was redesignated as Chairman of the Board of Directors of the iihiladelnhia Bank and as Federal _leserve Agent for the year 1931. Upon motion, Mr. d. d. Knight was reappointed as Class C, Director the Federal iieserve Bank of Cleveland for a term of three years beginning January 1, 1931. Upon motion, Mr. George DeCamp was redesignated as Chairman of the Board of Directors of the Cleveland bank and as Federal deserve Agent for the year 1931. Upon motion, Mr. L. B. dilliams was redesignated as Deputy Chairmen Of the Board of Directors of the Cleveland Bank for the year 1931. Upon motion, Mr. leo. LI. Verity was reappointed as Director of the Cincinnati Branch of the Federal deserve Bank of Cleveland for a term of Of three years beginning January 1, 1931. 12/11/30 . Upon motion, Mr. J. S. Jones was appointed as Director of the Pittsburgh Branch of the Cleveland bank for a term of three years beginning January 1, 1931. Upon motion, Mr. Frederic A. Delano was reappointed as Class C Director of the Federal Reserve Bank of Richmond for a term of three Years beginning January 1, 1931 and redesignated as Deputy Chairman Of the Board of Directors of the Richmond Bank for the year 1931. Upon motion, Mr. Ti. W. Hoxton was redesignated as Chairman of the Board of Directors of the Richmond Bank and as Federal Reserve Agent for the year 1931. Upon motion, Mr. Norman James was reappointed as Director of the Baltimore Branch of the Richmond bank for a term of three years beginning January 1, 1931. Upon motion, Mr. J. A. Law was reappointed as Director of the Charlotte Branch of the Richmond Bank for a term of tilree years ceginning January 1, 1931. . Upon motion, Mr. George 6. Harris was reappointed as Class C Director of the Federal Reserve Bank of Atlanta for a term of three Years beginning January 1, 1931. Upon motion, Mr. Oscar Newton was redesignated as Chairman of the Board of Directors of the Atlanta Bank and as Federal Reserve Agent for the year 1931. Upon motion, Mr. W. H. Kettig was redesignated as Deputy Chairman Of the Board of Directors of the Atlanta Bank for the year 1931. Upon motion, Mr. Albert P. Bush was reappointed as Director of the New Orleans Branch of the Atlanta Bank for a term of three years beginning January 1, 1931. Upon motion, Ur. S. O. Chase was reappointed as Director of the Jacksonville Branch of the Atlanta Bank for a term of three years beginning January 1, 1931. Upon motion, Mr. Wm. P. Ridley was reappointed as Director of the Nashville Branch of the Atlanta Bank for a term of three years beginning January 1, 1931. Upon motion, Mr. J. B. Hill, President of the Nashville, Chattanooga and St. Louis Railroad, Nashville, Tenn., was appointed as Director of the Nashville Branch for the unexpired portion of the term ending December 31, 1931 to succeed Mr. Luke Lea, resigned. Upon motion, Mr. E. F. Allison was reappointed as Director of the Birmingham Branch of the Atlanta Bank for a term of three years beginning January 1, 1931. Upon motion, Mr. James Simpson was redesignated as Deputy ChairMan of the Board of Directors of the Federal Reserve Bank of Chicago for the year 1931. Upon motion, Mr. David Matorran was reappointed as Director of the Detroit Branch of the Chicago Bank for a term of three years beginning January 1, 1931. 239 12/1113o -5- Upon motion, Er. John S. Wood was reappointed as Class C Director of the Federal Reserve Bank of St. Louis for a term of three years beginning January 1, 1931 and redesignated as Chairman of the Board Of Directors of the St. Louis Bank and as Federal Reserve Agent for the year 1931. Upon motion, Kr. John W. Boehne was redesignated as Deputy Chairnan Of the Board of Directors of the St. Louis Bank for the year 1931. Upon motion, Er. E. H. 77oods was reappointed as Director of the Louisville Branch of the St. Louis Bank for a term of three years beginning Tanuay 1, 1931. , Upon motion, Mr. E. L. Anderson was reappointed as Director of the Lenphis Branch of the St. Louis Bank for a term of three years beginLing January 1, 1931. Upon motion, Kr. Hanm Williams was reappointed as Director of the Little Rock Branch of the St. Louis Bank for a term of three years beginning January 1, 1931. Upon motion, Mx. homer P. Clark was reappointed as Class C Director Of the Federal Reserve Bank of lanneapolis far a term of three years beginning January 1, 1931, and redesignated as Deputy Chairman of the Board of Directors of the Minneapolis Bank for the year 1931. Upon motion, Mr. John R. Mitchell was redesignated as Chairman of the Board of Directors of the Minneapolis Bank and as Federal Reserve Agent for the year 1931. Upon motion, Mr. A. R. Jacobs, President of the First Kational Bank Of Idissoula, Eontanal . was appointed as Director of the Helena Branch or the Minneapolis Bank for a term of two years beginning January 1, 1931. Upon motion, Er. Vt. 1. Eagee was reappointed as Class C Director O±' the Federal Reserve Bank of Kansas City for a term of three years beginninc, January 1, 1931. Upon notion, Mr. E4 L. McClure was redesignated as Chairman of the Board of Directors of the Kansas City Bank and as Federal Reserve Agent for the year 1931. Upon motion, Er. Wm. L. Petrikin was redesignated as Deputy ChairMtn of the Board of Directors of the Federal Reserve Bank of Kansas Oity for the year 1931. Upon motion, Er. flerritt1. Gano was reappointed as Director of the Denver Branch of the Kansas City Bank for a term of three years beginning 4,10,uary 1, 1931. Upon motion, La.. D. H. Hildebrand was reappointed as Director of :the Omaha Branch of the Kansas City Bank for a term of three years b eginning January 1, 1931. Upon motion, Mr. I. B. Doolin was reappointed as Director of the °klahoma City Branch of the Kansas City Bank for a term of three years beginning January 1, 1931. Upon notion, 1,:r. S. B. Perkins was reappointed as Class C Director Of the Federal Reserve Bank of Dallas for a term of three years beginning 12/11/30 -6- Xanuary 1, 1931 and redesignated as Deputy Chairman of the Board of Directors of the Dallas Bank for the year 1931. Upon motion, :jr. C. C. Walsh was redesignated as Chairman of the Board of Directors of the Dallas Bank and as Federal Reserve Agent for the year 1931. Upon motion, E. A. Peden was reappointed as Director of the Houston Branch of the Dallas Bank for a terra of three years beginning january 1, 1931. Upon motion, T. LI. Bennett was reappointed as Director of the San Antonio Branch of the Dallas Bank for a term of three years beginning january 1, 1931. Upon motion, Er. S. P. Applewhite, Douglas, Arizona, was appointed aB Director of the El Paso Branch of the Dallas Bank for a term of three years beginning January 1, 1931. Upon motion, Er. Walton N. Moore was reappointed as Class C Director Of the Federal Reserve Bank of San Francisco for a term of three years beginning January 1, 1931 and redesignated as Deputy Chairman of the Board of Directors of the San Francisco Bank for the year 1931. Upon motion, Isaac B. Newton was redesignated as Chairman of the Board of Directors of the San Francisco Dank and as 2edera1 Reserve Agent for the year 1931. T.Ton motion, Er. Edward C. Pease was reappointed as Director of the Portland Branch of the San Francisco Bank for a term of two years beginning January 1, 1931. Upon motion, Lir. Henry A. Rhodes was reappointed as Director of the Seattle Branch of the San Francisco Bank for a term of two years beginning January 1, 1931. Upon notion, Er. Peter LeGregor was reappointed as Director of the SPokane Branch of the San Francisco Bank for a term of two years beginning January 1, 1931. Upon motion, Mr. G. G. Wright was reappointed as Director of the Salt Lake City Branch of the San Francisco Bank for a term of two Years beginning January 1, 1931. Upon motion, Er. J. B. Alexander was reappointed as Director of the Los Angeles Branch of the San Francisco Dank for a term of two Years beginning January 1, 1931. Letter dated December 0th from Iii'. Jillian Austin, requesting permission, 11Pot Proper acknowledgment, to use certain statistical data appearing in the ' IX Reserve Bulletin in an article which he is preparin!-7 2or submission to th, lailway Age". Upon motion, it was voted to interpose no Objection to Er. Austin's use of the data as outlined. _ 12/11/30 -7- Letter dated December 5th from the Federal Aeserve Agent at St. Louis, "aing that the First National Bank of Corinth, Miss., was deficient in its tellerve requirements during the semi-monthly periods between March 1st and 4Ptember 30th, but recommending that in view of the recent closing of the Ntath Bank and Trust Company and the fact that the First National Bank has 111441 40 average deficiency in its reserves during the last three semi-monthly 1"iods, the Board defer taking action on the matter. After discussion, upon motion it was voted to approve the Federal Aeserve Agent's recommendation and to furnish a copy of his letter to the Comptroller of the Currency for his information. Aeport ef Committee on Salaries and Expenditures an list submitted by the Pederal Aeserve Bank of San Francisco of the employees for whom the cill'eotors approved leaves of absence with pay, on account of illness, during tile month of November, where the total of such absences since January 1, li)30 has exceeded thirty days; the Board's Committee recommending approval t3t the salary payments involved. Approved. Aeport of Committee on District No. 6 on letter dated December 9th 4°14 the Federal Aeserve Agent of the Federal deserve Bank of Atlanta, l'13111Mend1ng approval of the action of the interstate Trust and Banking Qoza,, v4AY of New Orleans, Louisiana, in taking over certain assets and 4411111ing certain liabilities of the New Orleans Bank and Trust Company; the 441 ' cle s Committee also recommending approval. Approved. , ,t 12/11/30 -8- Letter dated December 10th from the Federal lieserve Agent of the Nieral deserve Bank of Richmond stating that, in accordance with an arrangeOf which the Board was advised in his letter of February 21, 1930, the 414aric5n Bank and Trust Company of dichmond, Virginia, absorbed the Jest 44 Bank of dichmond as at the close of business an December 9th, and will clPallste the latter office as a branch. Noted. Draft of a letter to the Federal deserve Agent of the Federal deserve 81110k of Cleveland, replying to his letter of November 25th with regard to the °I.1 nmstances which should be considered by the Board of Directors of his bank 14 Passing upon applications of state banking institutions for membership 114 the Federal .cieserve System, particularly where the great bulk of the bank's %eta are of a kind ineligible for rediscount or purchase by the Federal Iteasrve bank; the proposed reply stating that Section 9 of the Federal Ae13 Act places a responsibility upon the Board in passing upon applications " " t Membership to consider not only the financial condition of the applying beak and the general character of its management, but also whether or not the corporate powers exercised are consistent with the purpose of the ral deserve Act, and while it cannot, of course, pass upon a case 41161cifically referred to by the Agent, it is inclined to believe that with Q°11dLitions as recited it would be disposed to disapprove the particular 4)4a/cation. After discussion, upon motion, the proposed draft of letter was approved. 12/11/30 -9- 2.1.emorandum from Counsel dated December 9, submitting an agreemmt between the Federal deserve Bank of Richmond and the Federal Reserve Agent covering custody of a stock of unissued Federal deserve notes at the Charlotte Branch which agreement was forwarded to the Board with the federal Iteserve Agent's letter of December 5th; the memorandum stating that the 131'ePosed custody differs from the arrangement approved by the Board at other hIsenches in that there is dual control only, the representative of trio 411diting Department being omitted, but as the Federal Reserve Act requires that unissued notes be held in the joint custody of the Agent and the hderal deserve Bank he is of the opinion that the proposed arrangement meets the requirammts of the Federal deserve Act and is in proper form. J( With his Inallii)randum Counsel submitted draft of a proposed letter to the Agent at 41°111110nd advising that the Federal deserve Board has no objection to the eatablishment of the custody of unissued Federal Reserve notes at the Charlotte Branch with the understanding that the Board reserves the right t0 require the arrangement to be modified or discontinued if at any time it allotad see fit. Upon recommendation of the Law Committee the proposed letter to the Federal deserve Agent at Richmond, was approved. Memorandum from Counsel dated December 9, 1930 with regard to letter 4tea December 5th from the Federal Reserve Agent at St. Louis, recommending that a receiver be appointed for the First National Bank of Lt. Jterling, ) 111i, which transferred its assets and has not functioned as a bank for than two years, the memorandum recommending that the Board suggest to the eat. -itroller of the Currency that it is desirable that a receiver be appointed 12/11/30 -10- blorder that the Federal Reserve Bank stock held by the First National Bank I 111kr be cancelled. Upon recommendation of the Law Committee it was voted to approve Counsel's suggestion and letters to the Comptroller of the Currency and the Federal Reserve Agent advising accordingly, which were submitted with Counsel's memorandum, were ordered transmitted. Xemorandum from Counsel dated December 9th advising of Senate Resolution 359 introduced in the Senate by Senator Thomas on December 8th, directing tIle Federal Reserve Board to advise the Senate what steps it is taking or I T°Etee to take to meet the existing depression and consequent unemployment 44(1 low prices. Noted. blemorandum from Counsel dated December 9th submitting copy of Senate vintion 358 introduced on December 8th by Senator McKellar which would 'Iltliorize an investigation of the enforcement of the anti-trust laws 1 1 ing the provisions of the Clayton Act with regard to interlocking directorates. Noted. The meeting adjourned at 12:45 p.m. Ozu broved: Assistant Secretary.
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