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527 A meeting of the Federal Reserve Board was held in '.ilashigton on '''lecilles(laY, December 14, 1032, at 11:10 a. m. PRESENT: Governor Meyer Mr. Haralin Mr. Miller Mr. James Mr. liaoee Er. Mr. Mr. las. Lorrill, Secretary EcClelland, Assistant Secretary Harrison, Assistant to the Governor Wyatt, General Ayon.sel. The minutes of the meetings of the Federal Reserve Board held on 41513er 21, 22, 23 and December 5, 1932, were approved. The minutes of the meeting of the Executive Committee of the Federal e Board held on December 2, 1932, were approved and the actions l'ec°1 ' cled therein were unanimously ratified. The Board then considered and acted upon the following matters: Reply, ap)roved by five members of the Board on Decenber 13, to a lette , dated November 29, 1932, from the federal iteserve Arent at St. Louis egard to the continuous reserve deficiencies of the Carrollton 4tio ' 1141 Bank, Carrollton, 1:entucky, awl reply, approved by four numbers n ioard on December 13, to a letter dated December 3, 1932, from the 4cier ezie 1 aoserve Agent at Kansas City, with regard to the continuous reserve lies of the First National Bank, 3hickasha, Oklahoma. The replies 4t4te in each case that, in view of the information submitted, the Board 1141 te2 =e no action with regard to the deficiencies at this time other than tz, to -11t1,eze a copy of the agent's letter to the Acting Comptroller of the Y fel.- the information of his office. Approved. Relay, approved by four members of the Board on December 13, to a 528 12/4162 9 4tter dated December 1, 1932, from the Federal Reserve Agent at New York, --lig an analysis of the report of examination of the Carthage National titch anCe 3an, Carthage, New York, as of October 24, 1932, and recornendin; the+ " thetl Board continue to hold in abeyance the bank's application for per11118810/1 to exercise full fiduciary powers. The reply stated that the Acting e°11111trollor of the Currency had also recorraended that action on the application be deferred and that, in accardance with these reconlendations, and in View Qf the infoination submitted, the Board will take no action in the ktte1" at this tine. The reply also requested that the agent advise the ktio, "al bank that the Board will be pleased to consider the application kekib When the bank has effected a correction of the unsatisfactory re -8 01 its condition. Approved. Letter to the Federal Reserve Agent at Dallas, approved by four kel,aber 2 Of the Board on Deceaber 13, 1932, inclosing a voucher in the amount 47 coverinL: the expense to the Federal Reserve Bank of Dallas of °rill-cos rendered by Assistant Federal Reserve Agent W. Y. Evans in Iletirig an examination of the Lexico City branch of The Chase Bank. The eltter requested that the voucher be signed and returned to the Board, and 4.t teci that as it nay be several weeks before the Board is in a position to ' "z a statement to The Chase Bank covering the cost of the examination tit tle tothe bank and its several branches, it is hoped that it will be agreeable Dallas bank to carry the item in 4 SUSpellS8 until the Board receives ttanee from The Chase Bank, at Which time a check in payment of the l'elkl°413r be forwarded. Approved. 529 -3Liemorandum dated December 9, 1932, from Er. Snead, Chief of the 411810n of Bank Operations, calling attention to the fact that the present -"Of the semi-ornual report of earnings and dividends of nenber banks, 1431°)1 With minor changes, was used in obtaining reports from national banks bet °Ire the Federal Reserve System was established, is difficult to compile 414 d°es not set out the information in such a way as to make it convenient tOr ' 44313 either for statistical purposes or for analyzing the earnings position tn. --u'uer banks; stating that with a view to correcting these defects the 411411as been rearranged in such a way as to simplify its preparation and to t(terlaitate its use by the System; and recommending that the Board approve the 14%°I)°zied revised report fann for use by State bank menbers in submitting earnings and dividend reports covering the last six months of 1932, 414 -450 approve the proposed instructions for the preparation of the report, 4A4,0L "4ed to the memorandum, and a proposed letter to all Federal reserve 4:41, submdtted with the memorandum, with regard to the preparation and 1414418eion of the reports referred to. The memorandum also stated that 444,14r revisions are being made by the office of the Comptroller of the kzell e.r in form 2129, used by national banks for submitting reports of 44111.13 , , expenses and dividends, and that the Comptroller's office expects te i olt -44116 similar instructions to national banks governing the preparation tle report. Approved. Reply to a letter dated December 12, 1932, from the Chairnan of Ei4eral Reserve Bank of Atlanta advising that at the meeting of the 4 Of directors of the bank on December 9, 1932, upon recomnendation of -1..r1r committee, it was voted to decrease the aggregate of the salaries 12/14/32 or 411 QuPloyees of the bank by twelve per cent, without the dismissal of 84/TeraPloyees, and that the chairman, governor and mnnaging committee were erapN, -"ered to make reductions and adjustments in the salaries of employees. /Ile rani stated that upon receipt of a staterert of the proposed adjust- to be made in the salaries of individual officers of the bank and its brajar,i_ ''nes and employees occupying api)raised positions, and advice as to the ,.•oc•eri method of adjusting the salaries of employees coming under the classification plan of the bank and branches, the Federal Reserve 1 10,41, 1: 1 will give caret-VI consideration thereto. Approved. Letter dated December 12, 1932, from the Chairnan of the Federal Bank of Jt. Louis inelosing a copy of the minutes of a session of te IlleetinC of the board of directors of the bank on December 2, 1932, at 174144 4 resolution was adopted to the effect that the directors find no te4°11 for altering the salaries of the officials or the employees of the kcierai Reserve Bank of St. Louis, but that, on the contrary, the salaries ki4bIr the bank are entirely in line with those of other Federal reserve t kna of comnercial banks in the Eighth Federal _leserve District, after t() consideration reductions recently made, the resolution also 4t ktter, 4 that if the matter of reductions in salaries should become a System the board of directors stands ready to review the situation again 411Yttae. After discussion, the matter was referred to the Chief of the 73oard's Division of Bank Operations for analysis of the statements contained in the resolution. Letter dated December 13, 1932, from the Governor of the Federal 531 121)4/32 48erve Bank of Philadelphia referring to the resolution adopted at the /c)illt conference of sovernors and federal reserve agents on rovember 17, 1.932 ) that it was the sense of the conference that wages and salaries at Ner Q- reserve banks should not be reduced at this time, and stating that Y after the adjoumment of the conference the Chairman of the Governors, 001Te-vence had requested Governor T'orris to repeat and perhaps enlarge upon views expressed by him during the discussion of the resolution. The lett e- enclosed a stateuent prepared by Governor I:orris after consultation bYM, or telephone with several governors and agents, and advised that -11f1 the statement had not been submitted for their express approval, it 17Eiz believed that it expressed the views of -those who voted for the resolut ioli. roted. Telegram from Deputy Governor Crane of the 7ederal Reserve Bank of received under date of December 3, 1932, and circulated smon:-.,7 the 4.4 1bers of the Board, reporting that advice has been received from the la/1: International ettl,'ments that the Reichsbank, at the maturity on el4ber 5, 1932, of the credit to that bank, will repay :4;4,000,000 of the 131111e1Pa1 amount of the credit, of which repayment the rew York bank will . 1,0 00,000; also, that the participants in the credit have agreed to El AArther renewal for three months from December 5 of the unpaid balance tle to .A36,000,000 credit, on the stare terms and conditions amtultilif:3 °I'errled the Previous renewal, except that the amortization clause has c ktted. The telegram stated that this clause was omitted in order that t4er enk,'ht be no implication in the contract that the credit is not in fact kypa, in 11111 at maturity, and that the ileichsbank has been advised that 532 1414/62 -6- the ittended er.Tect of the omission of the clause is to conserve for the Irticipants their entire liberty of action at the next maturity with IIIGet to the total or /Partial rerayment of the credit or its total or Dartial renewal, and, in /particular, because it is desired by the particiif the renewal be not repaid in fall at maturity, to remain free to --.0, in the light of conditions as they then exist, for a further 111)stanti • al repayment of the credit before considering a further extension. Noted. Er. Harrison then stated that Er. L. B. Jillins, Deputy Chairman or the - -eueral Reserve Bank of Cleveland, had advised him by telephone ' e-Le_Wam that he is confined to his home by illness, and that he will tele -1.€1134 the 3oard later as to when he will be able to come to ',iashington 4 rUrther discussion with the Board of the matter of the appointnent Or Et Class C director of the Cleveland bank and the designation of a chair1411 "4 ?ederal reserve agent at the bank. Consideration was then given to the question what, if any, action 41104.La 14 be taken by the Board to recommend to Congress that the time limit 4ections , L; and 3 of the Glass-Steagall Act be extended. 1eo t. In this reference was made to the fact that the Governors' and Federal e -Agents' Conferences and the 17ederal Advisory Council have suggested 1()tilen(lard that it recommend the extension of the provisions of the 4t1()Ils referred to, for at least a year. At the conclusion of the discussion, the Secretary was reauested to prepare and submit to the Board for further consideration, drafts of letters to the Chairmen of the Banking and Currency Committees Of the Senate and House of Representatives, recommending the extension referred to. Reports of Standing Committee dated December 12, 1932, recommending 4151 ' clva1 of the following changes in stock at Federal reserve banks: 11 D4 cations for SURRENDER of Stock: 41.ret Shares National Bank, Emporium, Pa. (Insolvent) 180 1),,latrict No. 4. 44tIlleane National Bank, Pittsburgh, Pa. (Insolvent) 900 14.ratrict No. 5. 11 , t Bald Citizens National Bank, Elizabeth City, 1Torth Carolina. (Decrease in surplus) 90 t let No. 7 tional Bank, Altona, Ill. (V.L.Suc. by Alton.a National Bank) 33 ict No, 8. at National Bank, Washington, Mo. (Insolvent) 39 900 let/To. 9. tc.3c1 States Nationnl Bank, Deer Lodge, Montana. tIl isolvent) /44zstrict No. 12. ri(,_e4,31 National Bank, San Bernardino, Calif. rease in surplus) Approved. Thereupon the meting adjourned. V 5 ) P-e-4;U -7L Pnr)1,,C;---CP Secretary:
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