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4, 0 A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Friday, December 11, 1931, at 10:30 a. in. PRESENT: Governor Meyer Mr. Hamlin Mr. Liner Mr. Tames Mr. Magee Mr. Mr. Mr. Mr. Mr. Morrill, Secretary McClelland, Assistant Secretary Harrison, Assistant to the Governor Wyatt, General Counsel Goldenweiser, Director, Division of Research and Statistics Mr. Tohn Foster Dulles of New York City was also present and tirticipated in an informal discussion with the members of the Board, during lihich he elaborated somewhat on the written report which he submitted under date of November 26, 1931, regarding financial and credit conditions in 411r013e, with particular reference to their effect upon the export of American Products. He also outlined, for the information of the members, certain nerel impressions which he formed during his recent visit to Europe. " At the conclusion of the discussion Messrs. Dulles and Goldenweiser left the meeting. The minutes of the meeting of the Federal Reserve Board held on tecember 3 were approved. The following matters of business were then considered and acted 4011 by the Board.: Draft of letter to all Chairmen of Federal reserve banks requesting " h they submit to the Board before the next Governors' Conference oxof their views with regard to each of the recommendations contained lrj the recent report of the Committee on Bank Reserves of the Federal Reserve /ratanl, together with any suggestions which they feel should be considered 15/ 'the Board before it passes upon the report. 12/11/31 -2Upon motion, the letter was approved. Letter dated December 10 from the Assistant Secretary of the Federal Reserve Bank of New York and telegram dated December 10 from the Chairman of the Federal Reserve Bank of Dallas, both advising that at meetings of the toe- -L'ds of Directors on that date, no charges were made in the banks' existschedules of rates of discount and purchase. Without objection, noted with approval. Report of Committee on Salaries and Expenditures on lists submitted bY the Federal Reserve Banks of New York and Philadelphia of employees for Vlom the directors authorized leaves of absence with pay on account of illness during the month of November, where the total of such absences since 4nuerY 1, 1931 has exceeded thirty days, the Board's Committee recommending aPproval of the salary payments involved. Approved. Bonds in the amount of %;50,000 each, executed under date of December '4-931, by L:r. Fred Heinecke and 1.1,r. A. T. Hibbard as Alternate Acting 'kesistant Federal Reserve Agents at the Helena Branch. Approved. Telegram dated December 10 from the Governor of the Federal Reserve ' of New York stating that the Hungarian National Bank has advised the tatk -Lor International Settlements that it cannot safely effect any reduction 14 the central bank credit which expires on December 18 and has asked for a l'elle/Yel, that the Bank for International Settlements considers it desirable to renew the credit to avoid precipitating immediate grave consequences for the IlUngarian National Bank, that the Bank for International Settlements has 12/11/31 r4 MOP,"01.11. reed to renew the credit for the full amount now outstanding for one month, alld that the Board of Directors of the Federal Reserve Bank of New York, at its meeting yesterday, voted, subject to the approval of the Federal Reserve (:/ard, to authorize the officers to arrange for the renewal for a period not eXceeding one month of the New York bank's participation of '4,000,000 in the credit to the Hungarian National Bank, provided the other principal l/articipants in the credit do likewise, it being understood that the renewal 19111 be upon substantially the same terms and conditions as the existing credit. After discussion, upon motion, a telegram to the Governor of the New York bank, advising that the Board offers no objection to the action of his directors, was approved, Lr. Liner not voting. Draft of telegram, replying to a letter dated December 4 from the ederal Reserve Agent at Cleveland transmitting with a favorable recommendthe application of the First Wellington Bank, Wellington, Ohio, for Pellnission to rediscount paper endorsed to it by the '6ullivan State Bank ;S Ullivan, Ohio, a nonmember; the proposed telegram to the Federal Reserve ent advising that the Board authorizes the Cleveland bank, in its discretion, a Period of six months from this date, to rediscount for the First Weil, 4-111gton Bank, good and eligible pa:2er acquired from or bearing the nature or endorsement of the Sullivan State Bank. Upon motion, the telegram was approved. r‘k Reply to letters dated December 2 and 3 from the Chairman of the Perl 'eral Reserve Bank of St. Louis submitting for approval an amendment to th. 0Y-laws of the branches of the bank which would permit the Boards of A 12/11/31 -4- 4SC)t) Directors of the branches to fix the hour of their meetings, and inquiring whether there is any requirement that the meetings of the directors of all branches of a Federal reserve bank be held on the same day, which would Prevent a change being made in the meeting day of the directors of the 141lieville branch so as to permit Yr. Nahm, a director of the St. Louis baak, to attend meetings of the branch board en route to or from meetings Lt the head office; the reply stating that there is no such requirement, that if the Board of Directors of the St. Louis bank desires to change the nieeting day of the directors of the Louisville branch, the Federal Reserve 8°ard will give favorable consideration to the necessary amendment to the bl'anoh by-laws, that the Board has approved the amendment to Section 3, Article II of the by-laws of the Little Rock and Memphis branches which will permit he local boards to fix the hour of their meetings, and that action has been deterred so far as the amendment of the Louisville by-laws is concerned in 7iew of the possible further amendment referred to above. Upon motion, the reply was approved. Reply to letter dated December 5 from the Federal Reserve Agent at " 17 York transmitting a request from the Hibernia Trust Company, New York, 1111°88 application for membership in the Federal Reserve System was approved b/r the Board on November 16, subject to a condition, among others, that prior to nA_, -'ullesion to membership the bank shall charge off all losses, including the item of prepaid expenses, and all depreciation with the exception of that °11 bonds grading B1 plus or higher, that this condition be modified so as to l'edlice the amount of the reouired charge-offs from 096,000 to 4;872,000, the '41°1111t of the applicant bank's reserve and undivided profits accounts, there- 11/r eliminatino: the necessity of a charge of approximately $124,000 against the 1.11'1)11.1s account of the bank; the reply stating that the fact that the charge tI °r1'8 required by the Board involve a reduction in the surplus account of the healk does not appear to the Board to be a sufficient reason for modifying the e01141tion in the manner oroposed, and requesting that the applicant bank be Mvised accordingly. Ugon notion, the letter was am)roved. aeply to letter dated rovomber 25 from the 2issistant Federal Reserve Agent at Levi York with reference to the merger on I:oveuber 2, 1931, of the °IrerPeck Trust Company of Ridgefield Park, New Jersey, with the Ridgefield 1,azo_ A Trust company, a member, under the title "Ridgefield Park-Overpeck Trust Corny, ---LaY""; the reply stating that the Board is deferrin(, action on the question Illether the merger involves a change in the general character of the assets "the Ridefield Park Trust Comoany or in the scone of the functions eZe ised by it such as would constitute a violation of the general condition X e , which it was admitted to membership in the Federal Reserve System, until Vter the next examination which, if necessary, should be participated in by l'°I) zesentative of the 2ederal Reserve bank for the ouvl)ose of making a el-Etas. , ification of the loans and investments acnuired from the Overpeck Trust Conib 1-Y, and following which a further report should be furnished to the Board ' 41til recomnendation as to what action, if any, should be taken. Upon notion, the letter was an-Jroved. Draft of reply to memorandum dated December 11 from the Acting jtk -1.011 4-er of the Currency reconnending approval of a reduction from 412 ln ''' 0,000 to -:;12,000,000 in the capital stock of the First National Bank in 4. t .A.ssouri; the reply stating that with the understanding that the "n in canital will be authorized by a vote of shareholders owning two- -6- 12/11/31 --k-ts of the capital stock of the national bank, the Federal Reserve Board el)P1'°ves the reduction upon the condition that each shareholder be given the °PPo rtunity to tender his pro rata holdings and to receive in cash his Pro rata 8118"l'e Of the proceeds of the capital reduction of 100,000 and of a proposed (471dend of .100,000, unless his right thereto be waived in writing. Upon notion, the reply was approved. Reports of Standing Committee dated December 9, 10 and 11, reconnendbig approval of the following changes in stock at Federal Reserve banks: kr) 1 -4J.cation for °idyl-DIAL Stock: Vg1. -9_LLIL_1Lt Anr._;elo National Bank, San Angelo, Texas. Shares 336 336 4-1cations for SUR2ENDER of Stock: 411'at National Bank, Greene, :. Y. (V.L.Suc. by First National Bank in Greene) 11 ' st Citizens Bank and Trust Co., Utica, 1:."Y. (Cons. of the Citizens Trust Co., and Utica Trust and e1)05 itCo., with the above bank) Villa national Bank, Granville, E.Y. (V.L.Abs. pA bY ' ;iashington County National Bank of Granville) -01aes National Bank, Pulaski, E.Y. (Insolvent) GO 1,950 48 38 2,006 -..I)letr • AA-:---j•-ct No. 3. ional Bank, Atlantic City, U. I. b. (V.L.Abs. by Equitable Trust Co.) ,Bank Title 3-, Trust Co., Vfilkes-Barre, Pa. k Insolvent) Dketr e0,1 let 0 4. -v-Les rational Bank, Point Marion, 2a. (Insolvent) 150 900 1,050 60 60 300 300 bia le. b. l ational Bank, Hagerstown, DI. (Insolvent) .&.1.3 National Bank, Westervelt, Ill. (V.L.Abs. by pilrral:Ir2t National Bank of Shelbyville) (: . 18 I:erchants State Bank, Carson City, lach. k.a lsolvent) 18 21 Total Approved. 39 3,545 436 12/11/31 -7- Reports of Standing Committee dated December 1 and 9, recomrlendinval of ap'Aications for admission to membership in the Federal Reserve Stem by the following State institutions, subject to the conditions conin letters to the applicant ban...:s submitted with the Co...Lilt-Lee Reports: Number of Shares k4ensburg Trust Company, , agdensburG, New York. eloollants Bank of Kansas City, Xansas City, :"issouri. 600 160 F. R. Bank er Tork Kansas City Approved. The meeting adjourned at 12:35 P.m. Secretary.
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