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519 Upon call of the Governor a special meet ins' of the Federal .deserve Board was held in the office of the Federal deserve 3oard on Friday, December 16, 1927 at 3:30 p.m. *RLIZSEET: Governor Young Li'. Platt Hamlin James :Ir. Cunningham Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary PHESENT ALSO: Mr. W. W. Hoxton, Chairman of the Federal Reserve Bank of Richmond Lr. G. J. Seay, Governor of the Federal Reserve Bank of Richmond Mr. Wyatt, General Counsel Mr. Gilbert, Supervisor of Examinations The Governor stated that he had called the meeting following a conference with Messrs. Hoxton and Seay, also attended by Messrs. 4att and . ilbert, regarding the condition of the Bank of Cheraw, Cheraw, S. j., a member bank and the Bank of Chesterfield County, Chesterfield, S. C., a nonmember bank, the proposed consolidation of which was brought to the attention of the Board on December 13th. -. Lr. Hoxtan presented reports of recent examinations of both the member and nonmember institution and stated that on the basis of the information contained therein as to their condition his bank would not feel justified in recommending to the Board favorable action on an appliotion .which has been filed with him by the Bank of Jheraw for approval Of the consolidation. The Governor stated that, if agreeable to the Board, he proposes to address a letter to dr. Hoxton as Federal deserve -ent, advising him (1) That the Board is of the (minion that, if the consolidation is ef- 520 -2- 12/16/27 fected, and the consolidated institution becomes a member of the 2aderal lieserve system, it may lawfully retain and operate as a member bank all Of the branches w:lich vier established and in operation by the Tank of Chesterfield County prior to ilebruar;,- 2.5, 1927, but that the consolidated bank may not retain and operate as a branch the main office of the Bank Of Chesterfield County; (2) That with the information the Board has before It at the moment, it can not approve a consolidation; ($) That if the coned solidation is effected, however, it will be necessary, if the consolidat bank desires to be a member of the Federal eserve System, for it to apnly for membership or for an application to be made on its behalf by the Bank Of Cheraw; (4) That if such an application is filed by the consolidated bank followin7 the consolidation, it will be necessary for the Zederal tesand erve Acent to make an examination of the parent bank and all branches to submit the report thereof to the Board with his recammenuation before the lioard. Jill be in a position to pass upon the application; and (5) That the consoliif the application is made by the Bank of 3heraw on behalf of dated bank, prior to the consolidation, it will be necessary for him to its branches, examine both the member bank and the nonmember bank with all and to sUumit reports of. such examinations to the Board with his recommendation. After discussion, Messrs. Hoxton, Seay, Wyatt and Gilbert left the room. After further discussion, Mr. Cunningham moved that the the Govmatter of the proposed consolidation be referred to ernor with power. Carried. r4:inI _A.. -3- 12/16/27 The Governor also reported that he had arraned with L:essrs. Ho:ton and Jeay that hereafter all reports of examination forwarded to the 3oard will be accom9antea by an analysis prepared by the Federal Aeserve L.gent and by a definite recommendation franthe Federal aeserve based upon the conaition of the member oank as disclosed by the examination, as to what, if action should be taken by the Board in the matter of permittin,7 the continuance of the bank's membership in he System. The meeting adjourned at 4:00 o'clock Jecretar7. Approved:
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