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4 A meeting of the Federal Reserve Board was held in the office of the Pederal Reserve Board on Monday, December 22, 1930, at 11:30 a. m. PRESENT: Governor Meyer Er. Hamlin Mr. Miller Er. Tames Er. Pole Er. EbClelland, Assistant Secretary. Report of Executive Committee on letters dated December 17th and 18th from the Chairman of the Federal Reserve Bank of Philadelphia replying to the Board's letter of November 25th and of the application of the Et. Airy National Bank Trust Company in Philadelphia, Pa., an outlying institution, for a reduction 14 it8 reserve requirements from 106 to 7% of demand deposits; the Board's e0111/111ttee also recoLimending approval. Unanimously approved. Memorandum dated December lath from the Chief of the Division of Bank °Perations, approved by the Committee on Salaries and Expenditures, regarding the request made by the Board for his recommendations as to limits which should be 1.1-Laced on reserves for self-insurance now carried or to be established by the Federal Reserve banks; the memorandum stating that upon taking the matter 11P with the Federal Reserve banks it has been ascertained that most of them preto use the self-insurance fund to cover any losses which may not otherwise be covered or are insufficiently covered by insurance; that none of them seem to teel that the amount of self-insurance reserves can be satisfactorily detel*Mined by any fixed rule; that in view of the provisions of Section 7 of the ?ecleral Reserve Act it is doubtAll whether the Federal Reserve banks can justify he creation of self-insurance reserve funds on any other ground than that, in tho long run, it is cheaper for them to carry part of their own insurance; the °6 '410randum also containing the following recommendations: "I would recomend, therefore, that the Federal Reserve Board advise the Federal Reserve banks that it feels justified in approving the creation of self-insurance reserve funds only in case they dis 4-1 OJLe.1.) 12/22/30 "place a definite amount of insurance which would otherwise be carried. would further suggest that the banks be advised that one of the Federal reserve banks use its self-insurance fund to displace secondary coverage on the fidelity of its employees, on burglary and robbery, etc., formerly covered by bankers' blanket bonds and that the Board considers this to be a reasonable use of such funds. This would seen to be Particularly appropriate since the establishment of self-insurance reserves was a factor in bringing about a reduction in the cost of bankers' blanket bonds. The cost of 500,000 primary coverage is now A2,500 a year as against rates previously charged amounting to as much as .!35,000 per annum. "If such a program were approved by the Federal Reserve Board each Federal reserve bank could carry a bankers' blanket bond calling for primary coverage of :500,000 for which the insurance companies charge '12,500 a year. The self-insurance reserve would then serve as secondary coverage ln the amount of the fund. "The replies from the Federal reserve banks indicated that it would be i7ipracticable to adopt any fixed rule for determining the amount which should be accumulated as a self-insurance reserve and such studies as we have made leads us to agree with the banks on this point. I would suggest, therefore, that the Board tentatively fix arbitrary limits for such reserves with the understanding that if they prove unsatisfactory to the Federal reserve banks the 3oard will entertain a request for a chan-:e therein. The amount of self-insurance reserves now held by the banks and the limits suggestedarz3 as follows: Present reserves Boston 1,Tew York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 1,512,167.79 561,041.39 400,000.00 350,000.00 500,000.00 250,000.00 500,000.00 500,000.00 Sugcested limit .'750,000 1,500,000 750,000 750,000 500,000 500,000 1,000,000 500,000 500,000 500,000 500,000 750,000" Upon motion, it was voted to approve the recommendations of the Chief of the Division of Bank Operations, and to advise the Federal Reserve banks accordingly. Report of the Committee on Salaries and Expenditures dated December 18, lg on the subject of the closing of the books of the Federal Reserve banks , tne end of 1930, the report reading as follows: rif 1Z/22/30 -3- "There are submitted herewith the requests of the federal reserve banks for authority to pay the semi-annual dividends as of December 31, 1930, to make certain charges againt current net earnin:s or surplus account and to dispose of any balance of net earnings in accordance with Section 7 of the federal Reserve Act. Sunnary statements for each federal reserve bank are attached hereto. "On the basis of reports received from the Federal reserve banks, the net earnings after payment of dividends, amounts to be transferred (or charged) to surplus and amounts to be paid to the United States Government as a franchise tax will be approximately as follows: Federal Reserve Bank Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis lanneanolis Kansas City Dallas San Francisco Total Net earnings y283,000 4,032,000 1,041,000 712,000 *46,000 **324,000 985,000 *77,000 186,000 *223,000 .266,000 *419,000 7,064,000 : Dividends: • .706,000 4,014,000 1,003,000 953,000 354,000 324,000 1,212,000 316,000 164,000 259,000 263,000 684,000 10,272,000 : Transfers to surplus : Charges to Sur lus .423,000 • .A.8,000 38,000 : franchise : tax +Mar .111, 241,000 400,000 AM, AMP 227,000 393,000 150 (a)1,350 11•01. 482,000 2,520 280 56,430 1,103,000 3,269,000 (a)3,870 :.Deficiency in net earnings. Balance after all charges to be set aside as a reserve for losses. (a) Nay be increased by about'i316,000 as a result of tax refunds. SELF-INSURANCE FUNDS "The following table shows the amount of the self-insurance reserve now carried by the various Federal reserve banks and proposed reserves to be set aside for such Purpose at the end of 1930: Reserve for self-insurance Present : Additions requested : to reserve at end reserve of 1930 Boston liew York Philadelphia Cleveland Richmond Atlanta Chicago at. Louis Llinneanolis Xansas City Dallas San Francisco Total $1,512,167.79 * 860577.61 561,041.39 400,000.00 350,000.00 * 10,626.15 * 12,250.00 500,000.00 250,000.00 250,000.00 500,000.00 500,000.00 4,573,209.18 ;:;',368,455.76 12/22/50 -4- *IleTresents income on self-insurance fund durinc 1930. "Under today's date a memorandum was submitted to the Federal Reserve r°erd by the Division of Bank Operations recorendinp certain tentative limits reserves for self-insurance of the various Federal reserve banks. Your ' °Itarlittee concurs in the tentative limits given in the memorandum. "The self-insurance reserve of the Federal Reserve Bank of Pew York is at Pre n sent in excess of the limit of „1,500,000 recommended for that bank and ;!,e°rdincly it is recommended that the 1930 earninc,s on the Pew York selftlrance reserve be not transferred to the bank's self-insurance reserve. , "In the case of the Federal Reserve Bank of Cleveland, it is recommended in lieu of transferrini; to the reserve the income thereon in 1930 as %)Posed, the reserve for undetermined liabilities now carried by the bank in ttle athount of ,>200,000, which was established at the end of 1921 and increased al° 1 its present amount at the end of 1927, be returned to profit and loss and a l icient amount (188,958.61) be transferred to the bank's reserve for selfto bring that reserve up to the recommended limit of .750,000. The Iteserve Bank of Cleveland is the only reserve bank which now has a '.:.slerve for unuetermined liabilities. The above suggestion was discussed with aty Governor Fleming who was in .,iashington this week and meets with his 41'oval. t, "The Federal deserve Bank of iiinneapolis requests the transfer of . 250,000 itS self-insurance reserve and, contingent upon such action, the return to 'clgCit and loss of ,- 159,000 from its reserve for possible losses. This would 1.i.rease the self-insurance reserve of the ilinneapolis bank to the recommended t of ,i;500,000 and approval thereof is recommended. er "Atlanta is the only other Federal reserve bank which recilests an ina0 in its reserve for self-insurance and it is recommended that the inrequested, ..12,250, representing the 1930 income on the bank's selfreserve fund be approved. RESEAVES FOR LOSSES "Indebtedness of closed or overextended banks and Probable losses thereon the present and Proposed reserves to take care of such losses are as follows: V l 'ezal ,iezerv e 1Ston P. 74/ York 071<adelphiland A Q11111°1-1(1 ohtlanta NI?as City zzancisco Total Reserves Overextended banks: Closed banks • • AdditionPresent Probable IndebtedIndebtedness Probable al relosses ness to losses to cjiested bank F. R. banks F. R. (In thousands of dollars) 13 3,346 1,024 5,373 240 4,406 307 215 123 177 11,878 205 1,236 90 33 44 1,613 473 2,607 3,946 4,624 2,991 1,492 1,841 1,096 22,416 135 425 184 744 400 1,295 1,250 300 260 287 14 3,806 182 215 5 402 12/22/30 _5_ r„. "The Federal Reserve Bank of Atlanta recuests that all net earnin,7s re) inG after the payment of dividends and the deduction of other authorized ' ;Aelzges be transferred to its reserve for probable losses and-your Comittee :. ?ornillends that this request be approved. The amount of net earninr-s so reing, about 132,000, together with the bank's present reserve of 1295,000 will aoproximately equal estimated losses. .,1 "The amount renueJted by the Federal Reserve Bank of St. Louis, 215,000, ' ci ther with the bank's present reserve is equal to estimated losses. i.et t14111inr;s of the Federal Reserve Bank of St. Louis before payment of dividends ble,estimat,-d at .137,936.98 or .77,063.02 less than the ,215,000 which the 1€1 4 requests authority to add to its reserve for losses on gaper of failed banks. 1,e has not been the policy of the Federal Reserve Board to authorize the Federal serve banks to make charges against their surplus accounts for the purpose '14 settin; up reserves to cover Probable future losses, the amounts of which 1ilre not been definitely determined. It is recormneided, therefore, that the tion to the reserve for probable losses by the Federal Reserve Bank of St. a viliS be limited to the amount of its net earnings before the payment of divi%telids. i 4 "Your comittee further recomends that all of the other proposed charges 4110,z1t current net earnings as outlined in the attached summary statements be 411/Pr0ved by the Federal Reserve Board and that each bank be authorized to pay toe usual semi-annual dividend at the end of the year, such dividend payments 11; cl aalthorized charges to be made against the banks' surplus accounts if essary because of insufficient current net earnings. SULITARIES OF STATET.WITS SMUTTED BY EACH FEDERAL RESERVE BANK: FEDERAL RESERVE BANK OF BOSTON 1930 sted gross earnings $2,344,912.52 41Thated current expenses 2 OV, 354.29 255,558.23 Estimated current net earnings 13t7i1,,„ --cited additions to current net earnings: Profit on U. S. securities sold Lliscellaneous Total additions 152,824.70 6,183.30 159,008.00 Ibto, ° vosed deductions from current net earningsReserves on bank premises: a% reserve on building Reserve on fixed machinery and equipment FUrniture and equipment Total deductions bloated net earnings Dividends Deficiency in earnings charged to surplus account 55,832.00 66,215.75 10,000.00 132,047.75 282,518.48 705,939.47 *403,420.99 t including a loss of appro:Amately ::J90,000 on collections which Will probably be charged off before the end of the year. 12/22/30 -6FEDERAL RESERVE BANK OF NEW YORK 1930 , .Eattliated gross earnings 413tilliated current expenses Estimated current net earnings 6,838,489.69 3,259,068.92 4titaated additions to current net earnings: Profit on U. S. Securities sold Net income from other real estate Profit on Equitable Building leases ljiscellaneous Total additions 1,271,118.86 85,210.58 24,181.41 3,746.46 1,384,257.34 r0 wk Posed deductions from current net earnings: Reserves on bank premises: Banking house - New York: 2% reserve on building Reserve on fixed machinery and equipment Banking house - Buffalo: 2,) reserve on building 179,526.99 203,260.96 illI t rloiture and equipment eaerve for self-insurance fund (interest on fund) 141417 adjustments Total deductions 129,509.25 86,577,61 5,075.87 610,850.68 4t1 mated net earnings Dividends Balance to surplus account 6,900.00 4,032.475.58 4,014,000.00 18,475.58 FEDERAL RESERVE BANK OF PHILADELPHIA 41t1 lalated gross earnings ' timated current expenses Estimated current net earnings tiMated additions to current net earnings: Profit on U. S. Securities sold Lliscellaneous Total additions o&ed deductions from current net earnings: Purniture and equipment Taxes - other real estate Sundry adjustments Total deductions -Inated net earnings Dividends Balance to surplus account 1930 :J2,988,000.00 2,064,000.00 924,000.00 167,600.00 900.00 168,700.00 39,000.00 10,500.00 2,500.00 52,000.00 1,040,700.00 1,003,000.00 37,700.00 12/22/3o -7FEDERAL RESERVE BANK OF CLEVELAND ! stimated gross earain:Ls 48t1mated current expenses Estimated current net earnings 4tiri1ated additions to current net earnings: Profit on U. S. securities sold Miscellaneous Total additions 1,ro Posed deductions from current net earnings: Reserves on bank premises: Banking house - Cleveland: 2;) 1 reserve on building Reserve on-fixed machinery and equipment Banking house - Pittsburgh: 2:,'; reserve on building Reserve on fixed machinery and equipment Ph 1930 3,577,834.16 2,651,943.32 925,890.84 148,352.00 322.50 148,674.50 91,486.91 154,989.45 14,011.49 13,899.45 . atue and equipment ezerve for self-insurance fund (interest on fund) :10eilses other real estate Total deductions i ti ‘raated net earnings Dividends Deficiency in earnings charged to surplus account 44,000.00 19,628.15 24,523.61 362,539.06 712,026.28 953,033.58 241,007.30 FEDERAL RESERVE BALE OF RICHMOND ted gross earnings -"I-Plated current expenses Estimated current net earnings 1930 (:)1,610,000.00 1,545,000.00 65,000.00 4titaated additions to current net earnings 49.500,00 1 Tosed deductions from current net earnings: Reserve on bank premises: Bankinz, house - Richmond: 2% reserve on building Reserve on fixed machinery and equipment - Banking house - Baltimore: 2% reserve on building Reserve on fixed machinery and equipment 31,001.00 41,041.00 24,894.00 32,216.00 lture and equipment eXPense - other real estate Total deductions 30,000.00 1,500.00 160,652.00 Inated deficiency in earnings before payment (DE' dividends Dividends Deficiency in earnings charged to surplus account 46,152.00 353,500.00 399,652.00 12/22/30 -8FEDERAL RESERVE DANK OF ATLANTA 4timated gross earnings 4timated current expenses Estimated current net earnings 4tlinated additions to current net earnings I'l'oPosed deductions from current net earnings Reserves on bank premises: 2,) reserve on bank buildings: Atlanta New Orleans Birmingham Jacksonville Nashville Reserve on fixed machinery and equipment: Atlanta New Orleans Birminsham Jacksonville Nashville Furniture and equipment Reserve for self-insurance fund (interest on fund) Reserve for losses on failed banks Sundry adjustments Total deductions • atIMated net earnings Dividends 1930 ,a,982,268.50 . 1,369,289.99 612,978.51 3,928.43 20,017.29 11,527.08 4,716.61 3,273.53 3,031.20 17,527.93 15,950.24 4,678.79 2,595.(,1 2,510.06 11,675.43 12,250.00 182,454.27 532.95 292,740.99 324,165.95 324,165.95 FEDERAL RESERVE BAIT 07 CHICAGO 4ti11 ated gross earnings -ti/nated current expenses Estimated current net earnings inlated additions to current net earnings: Profit on U. S. securities sold ilecoveries from suspended banks Lliscellaneous Total additions D1.0 P°sed deductions from current net earnings Reserves on bank premisesBankinr; house - Chicago: 2';', reserve on building Reserve on fixed machinery and equipment Banking house - Detroit: 2% on building Reserve on fixed machinery and equipment 41ture and equipment Total deductions 1930 fA,799,997.30 3.0799,951.11 1,000,046.19 225,000.00 36,33755 5,459.75 266,797.30 90,996.72 111,300.00 20,068.75 11,316.14 48,000.00 281,681.61 12/22/30 if f -9JJEDLUAL RESERVE BAnE OF CHICAGO (Continued) \ 4*tizated net earnings Diviends Deficiency in earnings charged to surplus account 1930 3985,161.88 1,211,805.73 226,643.65 FEDERAL RESERVE BATE OF ST. LOUIS 1930 ..1,719,316.81 1,392,836.02 326,480.79 4 tir1ctted gross earnings 4tinated current expenses Estimated current net earnings 4t* 'mated additions to current net earnings ()Posed deductions from current net Reserves on bank premises Banking house - St. Louis: 2,3 on building Reserve on fixed machinery Banking house - Little Rock: 2,-7) reserve on building Reserve on fixed machinery Banking house - Louisville: 2,70 reserve on building Reserve on fixed machinery Banking house - Memphis: il reserve on building 2d Reserve on fixed machinery 5,857.33 earnings and equipment 33,615.06 112,603.63 and equipment 3,757.30 10,360.78 and equipment 2,902.67 3,506.02 and equipment 4,180.33 4,406.24 ' -illture and eauipment elsve for losses on paper of failed banks ' 111-'Y adjustments Total deductions P t. mated deficiency in earnings before payment of dividends Dividends Deficiency in aarninGs charged to surplus 19,029.11 215,000.00 40.00 409,401.14 77,063.02 316,409.26 393,472.28 FEDERAL RESERVE BANK OF IIIIITEAPOLIS Eat ted gross earnings ated current expenses ' .-73sti • current net earnings zmated --, uted additions to current net earnings: 4ithdrawn from reserve for possible losses All other Total 1930 31,284,000.00 974,000.00 310,000.00 159,000.00 73,000.00 232,000.00 12/22/30 fri) -10FEDLIRAL RESERVE BANK OF MINNEAPOLIS (Continued) °1303ed deductions from current net earnings , Reserves on bank premises Banking house - Minneapolis: 2% reserve on building Reserve on fixed machinery and equipment Banking house - Helena: 2% reserve on building Reserve on fixed machinery and equipment • 1930 25,665.63 62,005.33 2,700.00 1,310.90 1?1111t1ture and equipment ' Reserve for self-insurance 4.11drY adjustments Total deductions 13,000.00 250,000.00 1,200.00 .356,181.86 tat. Lmated net earnings Dividends To surplus account Franchise tax 1851818.14 164,400.00 141.81 *1,276.33 -4-4 Presumably be increased by ,f,18,000 as the result of credit of v0,000 for tax refunds. FEDERAL RESERVE BANK OF KANSAS CITY e ttmated gross earnings etimated current expenses Excess of current expenses over gross earnings ta*, v-cmated additions to current net earnings Posed deductions from current net earnings Reserves on bank premises Banking house: 2r3 reserve on building: Kansas City Denver Oklahoma City Omaha Fixed machinery and eouipment: Kansas City Denver Oklahoma City Omaha Nl'--44,4.ure 114 and equipment Total deductions uaz. Icleney in earnings before payment of dividends Dividends Deficiency charged to surplus account 1930 .:;1,663,456.10 1,784,651.37 121,195.77 71,548.61 50,052.65 7,250,87 6,617.90 6,390.27 77,794.06 5,544.79 7,489.07 7,046.75 6,003.50 174,191.86 223,839.02 259,421.90 483,260.92 Ar)94-1 12/22/30 —11— FEDERAL FESERVE BANK OF DALLAS stimated gross earnings 4atimated curren t expenses Estimated current net earnings lettmated additions to current net earnings lax.° Posed deductions from current net earnings: Reserves on bank premises: 2/L reserve on buildings: Dallas El Paso Houston San Antonio Reserve on fixed machinery and equipnent: Dallas El Paso Houston San Antonio 1930 :.;1,586,582.81 1,339,290.32 247,292.49 88,484.03 18,605.94 1,793.77 4,749.31 3,135.82 14,387.06 737.43 2,300.85 852.00 ZIliture and equipment ' 4zY adjustments Total deductions 23,802.59 95.84 70,400.61 4t1-tated net earnings Dividends To surplus account Franchise tax • 265,315.91 262,503.38 261.25 2,531.28 FEDERAL RESERVE BANK OF SAN FRANCISCO irnated gross earnings 4ati 4lated current expenses Excess of current expenses over gross earnings "I.Mated additions to current net earnin gs 1)(3sed deductions from current net earnings lieserves on bank premises: a,s reserve on buildings: San Francisco Los Angeles Salt Lake City Reserve on fixed machinery and equiplient San Francisco Los Angeles Salt Lake City 1930 2,483,000.00 133,000.00 96,000.00 48,263.00 19,559.70 6,828.99 77,490.78 28,217.05 8,481.36 472,i)r-$ 12/22/30 -12FEDERAL RESERVE BANK OF SAN FRANCISCO (Continued) 1930 188,000.00 5,000.00 381,840.88 krniture and equipment tetimated losses on paper (DI failed banks Total deductions 419,000.00 684,000.00 1,103,000.00 Nriciency in earnings before payment of dividends Dividends Deficiency in earnings charged to surplus account Consideration was given to the individual requests submitted by the Federal Reserve banks, and upon motion, the recommendations of the banks, with such chances as were recommended by the Committee on Salaries and Expenditures, were approved and each bank Was authorized to pay the usual semi-annual dividend on December 31, 1930, and to make appropriate charges against current net earnings or surplus account. The Assistant Secretary then presented letters from the various Federal Reserve agents regarding the designation of Assistant Federal Reserve agents 4td Acting Assistant Federal Reserve agents at their respective banks for the coming year. These were considered individually and upon notion, the l'°110wing redesignations were approved; Bank Name Boston Charles P. Getteny New York VIjlliam H, Dillistin Herbert S. Downs Philadelphia Arthur E. Post Ernest C. Hill J. 7, Rehfuss Cleveland J. B. Anderson W. H. 21etcher Richmond J. G. Fry R. L. Shepherd Robert L. Honeycutt Redesignation Assistant Federal Reserve Agent 11 It IT ft It Acting Asst. Federal Reserve Agent. Assistant Federal Reserve Agent. It II tt t? Acting Asst. Federal Reserve Agent Temporary designation as Acting Assistant Federal Reserve Agent at the Charlotte Branch. -13- 12/22/30 Bank Redesiation Name Richmond Henry Schutz Temporary designation as Acting Assistant Federal Reserve Agent at the Baltimore Branch. Atlanta Ward Albertson Assistant Federal Reserve Agent Chicago W. H. White Clifford S. Young Carl Schelling St. Louis C. LL Stewart L. H. Bailey Frank P..Yaguire ft tt It If Vt ” if it To act for A'ent in receipt and delivery of Federal reserve notes. Assistant Federal Reserve Agent. First Acting Assistant Federal Reserve Agent. Second Acting Assistant Federal Reserve Agent. Curtis L. Mosher F. la• Bailey Oliver S. Powell Assistant Federal Reserve Agent Kansas City A. M. licAdams H. H. Rhodes Assistant Federal Reserve Agent Acting Assistant Federal Reserve Agent. Dallas C. C. Hall W. I. Evans Assistant Federal Reserve Agent Minneapolis San Francisco S. G. Sargent . O. P. Wheeler tf To act for the Assistant Federal Reserve Agents when necessary in the performance of certain daties outlined in the Federal Reserve agent's letter. Ti Ti1 It tf If tf TT Natter approved on initials of Executive Committee on December 20th, lutilely, telegraphic request from the Federal Reserve Agent at Dallas for approval °I. the appointment of H. O. Yeallon as a meMber of the examining staff of that /3414c at a salary of 3,600 per annum. Formally approved. The Governor then stated that under an Executive Order of the President the Treasury Department will be closed on Wednesday, December 24th, but that he 448 advised the Federal Reserve banks that the Board will maintain a skeleton ); 1 12/22/30 714- 0rganization with the gold settlement fund and currency divisions open and that Federal Reserve note shipments will be nade if necessary and gold fund clearing will take place as usual, on that date. Upon motion, it was voted to excuse those employees on the Board's staff who can be spared on December 24th. Letter dated December 18th from the Assistant Secretary of the Federal Reserve Bank of Yew York and telegram dated December 19th from the Chairman °T the Federal Reserve Bsnk of Chicago, December 18th from the Chairman of the Pederal Reserve Bank of Kansas City, and December 18th from the Chairman of the 111(leral Reserve Bank of San Francisco, all advising that at meetings of their Nards of Directors on the dates stated no changes were made in the banks' eZieting schedules of rates of discount and purchase. Without objection, noted with approval. Letter dated December 17th from the Chain-Lan of the Federal Reserve Bank °r St. Louis advising that the board of directors of the bank has made appoint- to the directorates of its branches as follows: Louisville W. F. Huthsteiner W. P. 'Kincheloe, Managing Director Term Expires December 31, 1933. December 31, 1931. Memphis R. Brinkley Snowden W, H. Glasgow, Managing Director December 31, 1933. December 31, 1931. Little Rock W. A. Hicks A. F. Bailey, Managing Director December 31, 1933. December 31, 1931. Noted. Memorandum from the Assistant Secretary dated December 22nd, advising that the minutes of the meeting of the board of directors of the Federal Reserve Bank Ol* tallas, held on December 8th, record the appointment of directors at the 32/22/30 -15- branches of that bank as follows, each for a term of three years beginning Xanuary 1, 1931: George D. Flory A. A. Horne R. T. Hunnicutt El Paso, Houston, San Antonio, Noted. Telegram dated December 18th from the Chairman of the Federal Reserve Bank Of San Francisco advising of appointments by the Board of Directors of that bank to the directorates of its branches, each for a term of two years beginning January 1, 1931, as follows: A. S. Cruickshank R. M. Hardy Sohn F. Daly rt. F. Backus E. 0. Howard Los Angeles Spokane Portland Seattle Salt Lake City Noted. Report of Conmittee on District Mo. 6 on letter dated December 17th from the Federal Reserve Agent of the Federal Reserve Bank of Atlanta recommending 41)Proval of the application of the Peoples Bank, Carrollton, Georgia, for 4PProval of its action in taking over certain assets and assuming certain liabilities of the First National Bank of Carrollton, the Board's Committee also recommending approval. Approved. Telegram dated December 16th from the ChSirman of the Federal Reserve 134Iik of San Francisco advising that an agreement has been entered into between the bank and the Federal Reserve agent, which agreement was authorized EtIld approved by the Board of Directors of the bank at its meeting on December 34th, covering the custody of a stock of unissued Federal Reserve notes at the tO8 Angeles Branch. 12/22/30 -16Noted, pending receipt of a copy of the agreement and a copy of the resolution adopted by the board of directors of the bank authorizing its execution. Letter dated December 16th from the Federal Reserve Agent of the Federal lieserve Bank of Minneapolis, advising of continued deficiencies in the reserves °r the First rational Bank, Kerkhoven, Minnesota, and a deficiency for a period Of six and one-half months in the reserves of the First National Bank, Woodstock, lilinnesota, and recommending that the Board take no action for one month in either of these cases; the letter also advising that the reserves of the First liational Bank of Gary, South Dakota, and the First National Bank of Motley, Innesota, previously reported as unsatisfactory, are now adequate. Upon motion, the recommendations of the Agent were approved and a copy of his letter was ordered transmitted to the Comptroller of the Currency for his information. Draft of letter to all Federal Reserve banks, advising that the Federal Reserve Board has directed its Division of Examination to make at least one eZeLmination of each Federal Reserve bank during the year 1931. Approved. Memorandum dated December 18th, from the Secretary of the System 0°11211ittee on Bank Reserves with regard to the question of the proper classification of deposits, which was referred to the Committee by the Board on September a°t11; the memorandum stating that after considerable discussion at the recent Inestinc of the Cormittee, it was decided that both the question of procedure t° be followed by national bank examiners in determining whether reserves on 4Poeits are properly maintained, and the extent and growth of the practice Of designating as savings deposits, deposits which under certain conditions -17- 12/22/30 are subject to check without presentation of passbook, are closely related to Other phases of the reserve question which the Committee has under consideration and that inasmuch as both of these questions require further study it has been voted by the Committee to defer recommendation thereon until it is ready to submit its final report. Noted. Memorandum from Counsel dated December 12th on letter dated December 10th trom the Secretary of the Equitable Eastern Banking Corporation applying for 413Proval by the Board of an application of Lr. Sherrill Smith for permission to serve at the same time as a director of the Equitable Eastern Banking Corporation, and the Chase National Bank of the City of New York, the teraorandum stating that it appears that all the outstanding capital stock of the Equitable Eastern Banking Corporation is owned by the Chase National Bank eza that, therefore, there is no legal reason why the application should not be approved. Approved, upon recommendation of the. Law Comnittee. The Governor stated that he had taken up with the Assistant Secretary of State the matter of the safety of the cash carried in the vaults of the Havana Secretary 4Genoy of the Federal Reserve Bank of Atlanta, and that the Assistant luld advised him by letter, under date of December 19th, that the Department (1°ee not think there have been any changes in the recent political situation Cuba which would justify a change in the position of the reserve bank. The minutes of the meeting of the Federal Reserve Board held on . cetber 15th were read and approved. The minutes of the meeting of the Executive Committee of the Federal , Ileserve Board held on December 18th were read and approved and actions recorded therein were ratified. 1 -18- 12/22/30 The ninutes of the joint meeting of the Executive Committee of the 4deral Reserve Board and the Executive Committee of the Open flarket Policy . Conference held on December 20th were read and approved. POTS OF STAEDING C012.11M,ES: Dated, December 19th Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary lAnute Book of this date. Recommendations approved. The meeting adjourned at 12:45 p. m. w9 ,/ Assistant Secretary 4PProved: /7 e 31 Go rnor
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