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A meeting of the Federal Reserve Board was held in the office of the deral Reserve Board on Wednesday, December 23, 1931, at 11:40 a. In. PRESET: Governor 7'eyer Fr. Hamlin Mr. Miller Mr. Tames Mr. Pole Mr. Morrill, Secretary Mr. McClelland, Assistant Secretary Mr. Harrison, Assistant to the Governor. The minutes of the meetings of the Federal Reserve Board held on Ltea, "14,0er 9, 11, 15 and 17 were approved: The minutes of the meeting of the Executive Committee of the Federal Reerve Board held on December 14 were anproved, and upon motion, the ot i°ns recorded therein were ratified. The following natters of business were then considered and acted 11134 by the Board: Letter dated December 17 from the Assistant Secretary of the Federal -4..ve Bank of New York, and telegrams dated December 17, from the Chairmen or tie Federal Reserve Banks of Kansas. City and San Francisco, and December 1(3 f zotl the Chairman of the Federal Reserve Bank of Chicago, all advising that at meetings of the Boards of Directors on the dates stated, no changes Were Inade in the banks t existing schedules of rates of discount and purchase. Without objection, noted with approval. Reports of Committee on Salaries and Expenditures on lists submitted bY the - 'Federal Reserve Banks of Richmond and Atlanta of employees for whom the A. `tIrectors authorized leaves of absence with pay on account of illness c111.1,4 ' J Ilg the month of november, where the total of such absences since Yanuary 1-31* has exceeded thirty days; the Board's Committee recommending approval " ' 12/23/31 - -2- °I ' the salary payments involved. Approved. Letters from the federal Reserve Agents at the various Federal Rebanks, except New York and lanneapolis, with regard to the redesignation cT Assistant Federal Reserve Agents and Acting .Assistant Federal Reserve Agents. Upon motion, the following redesignations were approved for the year 1932 except where otherwise stated: Bank. 130ston Phi ladelphia Cl eveland Redesignation Name Charles F. Gettemy Assistant Federal Reserve Agent Arthur E. Post Ernest C. Hill X. Frank Rehfuss Assistant Federal Reserve Agent It TT ft TT Acting Assistant Federal Reserve Agent J. B. Anderson W. H. Fletcher Assistant Federal Reserve Agent T. G. Fry Robert L. Shepherd Henry Schutz Assistant Federal Reserve Agent Acting Assistant Federal Reserve Agent It If ft It kehraond TV Vt tt Vt It R. L. Honeycutt Baltimore Branch (temporary) Acting Assistant Federal Reserve Agent Charlotte Branch (temporary) Ward Albertson Assistant Federal Reserve Agent C. S. Young George A. Prugh Carl Schelling Assistant Federal Reserve Agent chteao LoLtis City tt tt ft tt .To act for Federal Reserve Agent in receipt and delivery of Federal Reserve notes. Clarence IT. Stewart L. H. Bailey F. P. I:.cGuire Assistant Federal Reserve Agent Acting Assistant Federal Reserve Agent A. TT. 7cAdans H. H. Rhodes Assistant Federal Reserve Agent Acting Assistant Federal Reserve Agent Charles C. Hall 7J. 3. Evans Assistant Federal Reserve Agent TI It tt kliaz TV It It tt It 433 12/23/31 - Bank 8.411 Francisco _3Redesignation Name S. G. Sargent Oliver P. Wheeler Assistant Federal Reserve Agent tt tY ft ft Draft of reply to letter dated December 3 from the Assistant Federal Reaerve ,Agent at Chicago transmitting, with a favorable recommendation, the 7°1411tary notice of intention to withdraw from the Federal Reserve System, under date of December 1 by the Ottumwa Savings Bank, Ottumwa, Iaaa, With the request that it be permitted to withdraw from membership immediately; tlie reply stating that the Board has voted to waive in this case the usual equirement of six months notice and to grant the bank's request. Upon notion, the reply was approved. Draft of telegram to all Federal Reserve banks advising, in accord'411e13 Tiith an executive order signed by the President on December 22, that the , olfices of the Board, with the exception of the Gold Settlement Division, Will he Closed on Saturday, Decenber 26. Upon motion, the telegram was approved. Telegraphic replies, approved by five members of the Board on 13eeerter 19, to two letters dated December 17 from the Governor of the federal Pteeerve Bank of New York requesting approval of the action of the Board of ectore of the bank in authorizing the officers to open and maintain on the bow, Of the Federal Reserve Bank of New York, accounts for the Banco de l'°1'tligal of Lisbon, Portugal, and the Banco Central de Chile of Santiago, -' and to carry out operations in this narket for those banks along the tenerul lines and subject to the sane terns and conditions as for other 1C11 central banks having accounts with the Federal Reserve Bwok of New 4; the Board's replies advising of approval of the action taken by the 12/23/31 -4- airectors. Upon motion, the replies were approved. Reply, approved by five members of the Board on December 19, to a letter dated December 15 from the Federal Reserve Agent at Chicago recommendapproval of the application of the Citizens State Bank of Iamestown, Indiana, for permission to discount paper acquired by it from the State Bank °f Lizton, Indiana, a nonmember; the reply stating that the Federal Reserve 8Qard authorizes the Federal Reserve Bank of Chicago, in its discretion, for 4 Period of six months from December 19, to rediscount for the Citizens State IkIlk of Jamestown, good and elirjble paper acquired from or bearing the 41gnature or endorsement of the State Bank of Lizton, upon the condition that 4° 84oh Paper shall be rediscounted until the Citizens State Bank has first titilized all other paper in its portfolio which is eligible and accentable to the Federal Reserve bank for discount. Upon motion, the reply was approved. Telegraphic reply, approved by five members of the Board on December t° a letter dated December 21 from Deputy Governor Rounds of the Federal Ileaerve Bart: of New York requesting that the Board permit the Federal Reserve be ' ' 111 to purchase tax warrants of the County of Ontario, New York, in the 44411°411t of :"75,000, from the Canandaigua National Bank and Trust Cowpony, e4neildn. -lgua, New York; the reply stating that the Board approves the purchase Of the a.)c warrants referred to, waiving the requirement of Section III(b) of atj011 E that such warrants be issued in anticipation of taxes or revenues 4 are due and payable on or before the date of maturity of such warrants", lt ' ' -1-ng understood that the warrants neet the other requirements of the }3°Etrqr 8 Regulation E except that the amount is in excess of 25i of the total 12/23/31 7141Tants of the County of Ontario outstanding. Upon motion, the reply was approved. Reply, approved by five members of the Board on December 22, to 4tters dated December 8 and 9 from the Federal Reserve 41gent and Assistant PedLeral Reserve Agent at Kansas City, with regard to the action of the SunState Bank, Sundance, Wyoming, on November 14, 1931, in taking over the nests of the Hulett State Bank, Hulett, Wyoming, a nonmember; the reply ZeglIssting certain additional information and stating that the Board is rerrin2, until after the next examination of the member bank, consideration or the question whether the transaction will result in any change in the character of the business of the member bank, or in the scope of the 1\111ct' lons exercised by it, within the meaning of the so-called general conittD]oft under which it was admitted to membership in the Federal Reserve System, Upon motion, the letter was proved. anDraft of reply to letter dated December 9 from the Federal Reserve —nt at Philadelphia with regard to the action of the York Trust Company, Yozk 2 Pennsylvania, a menber bank, on December 4, 1931, in assuming the de1)°aits and acquiring for liquidation the assets of the North York State Bank Of y also a member; the reply requesting certain additional information the next 11(1 stat--InG that the Federal Reserve Board will defer, until after exejai nation. of the member bank, which is scheduled to take place in the near of the York Trust -1 consideration of the cuestion whether the action CoIto _ has resulted in an.yr change in the general character of its assets, tae scone of the functions exercised by it, within the meaning of the zo,ca,, membership. -L -Led ceneral condition under which it was admitted to ili 12/26/01_ -6- Upon motion, the letter was approved. Draft of reply to letter dated November 30 from the A.ssistant Federnl ileserm Agent at Cleveland with further reference to the action of the VToodl a Trust Com)any of Aliquippa, Pennsylvania, a member bank, in assumin7 on October 15, 1931, the deposit liabilities and acrluirinr, for liquidation the 488et3 of the Aliquippa National Bt-mk; the reply stating that in the absence Or plore definite information as to the value of the acquired assets, the Fed- ea .Reserve Board is deferring, until after receipt of the next report of eelnination, consideration of the question whether the transaction involves arlv " 'flanCe in the general character of the assets of the neither bank within the lueaning of the so-called general condition under which the member bank Wa's admitted to the Federal Reserve System. Upon motion, the letter was approved. Draft of reply to letter dated December 9 from the Federal Reserve cent at Dallas reporting that the National Bank of Commerce, Hugo, Oklahoma, 114a cleficient in its required reserves for the Period fl'ay 16 to November 15, blxt -e commending that no action be taken on the matter pending receipt of a her report which will be forwarded to the Beard at the proper time; the stating that the Board approves the Federal Reserve Agent's recommend11/ and requests that if the bank's reserves are not Promptly and fully red, he give consideration to the advisability of addressing a letter to e, 'eh director of the bank calling his attention to the situation and to the ecillirenents of the law in accordance with Section IV(b) of the Board's ' 11 PIO- Federal Reserve D; the letter also advising that a copy of the 3 letter and of the Board's reply are being sent to the Comptroller ()1* the for his info.,.lation. Currency 12/23/31 -7Upon motion, the letter was approved. Letters, approved by five rembers of the Board on December 22, to the Leral Reserve Agent at Dallas and to the First State Bank of Abernathy, e4Ets, Stating that in accordance with a recommendation of the Board of }Directors of the Dallas bank, based on the reserve record of the First State 13e4 since January 1, 1931 and the relations of the bank with the Federal 43erve Bank of Dallas since rovember, 1930, the Federal Reserve Board has .deeided not to require the member bank to terninate its membershin in the ecteral Reserve System because of past deficiencies in reserves and that the 151'°ceedings which were instituted in this connection have been brou-ht to ' El close, Unon motion, the letters were approved. Draft of reply to letters dated December 18 from the Federal Reserve 4ent at Richmond submitting a resolution regarding wages adopted by the 13°'4I'd of Directors of the bank, andtatincr, that the directors voted to nake 11° change on January 1, 1932 in the comoensation now paid to employees of the bank; the reply stating the position taken by the Board in this natter, °4tlinod in a letter addressed by it to the Chairman of the Board of Dire tc3r8 of the Federal Reserve Bank of Kansas City under date of December , Upon motion, the reply was approved. Replies, approved by five members of the Board today, to letters tk tea 1.0vember 23 and 30 from Congressman Louis T. McFadden requesting • 11QQ 11.341tI0n as to the allount of short-term German and Austrian indebtedness t111 country, the amount of Austrian, Gernan, English or Russian 12/23/31 4eceDtances held by the Federal Reserve banks, the nature of any commitments °t11,7=r agreements between the Federal Reserve banks and foreign central 1)4111c-8 3 their governments, or the Bank for International Settlements and the tact'an.t of Gelman, English or Russian acceptances held by Federal Reserve Aelltesas collateral for Federal Reserve notes. Approved. Reports of Standing Connittee dated December 13, 19, 21, 22, and 23, l'ec°1111;iencling approval of the following changes in stock at Federal Reserve 44 .2.11tions for ORIGINAL Stock: trictNo. 2. National Bank in 1:ontour Falls, N. Y. Shares 21 21 116 116 72 72 120 120 75 Total 404 21 21 44Qe 1:at1on —a . :3ank. of Logansport, Indiana. 1)istrict lio. 10. 1:1°T-iaY national Bank, Norfolk, Nebraska. 1)(118tzict r.o. 11. -itizens National Bank in Brownwood„ Brownwood, Texas. 11 41.1ii:C1oirst National Bank of Seattle, Vlashington. 75 1)412:1)1j-cations for AD-DITIONn Stock: el7 .,.rerseY Title Guarantee ,?.c, Trust Co., Jersey Cita', New Jersey. 41btr.CJo 5. 1 Tational Bnrk, Hinton., *,[. 7a. 105 Total — 105 126 ' : 101.1 ')}1eations ror ;11111-1111DEil of Stock: r ick National Bank, Brunswick, Maine. (V.L.Abs?torr,?: Fidelity Trust Co, of Portland, Iaaine.) :!ler National Bank, Eastport, Maine. (V.L._",bs. by nil Trust Co. of Bangor, Maine) 120 90 210 W23/31 -9- 421ications for SURRENDER of Stock: (Conttd) Eict No. 2. re°Ples Bank and Trust Co., Passaic, N. J. Na (Decrease in surplus) tional Freehold Banking Co., Freehold, N. J. (V.L. Abs. by First National Bank of Freehold) 3 1" 1Ilion National Bank, Atlantic City, N. J. (V.L.Abs. by Atlantic City National Bank of Atlantic City) titY Savings Bank & Trust Co., Alliance, Ohio. (Insolvent) 'Ilion Trust Company, Dayton, Ohio. (Insolvent) ' 1.rst National Bank, Hendricks, W. Va. (V.L.Abs. by n. First National Bank of Parsons, W. Va.) il..tizens National Bank, Hinton, d. Va. (V.L.Abs. by First National Bank of Hinton) Shares 210 120 330 240 240 225 1,920 2.145 30 60 90 bi strict l. ecte Savings Bank, Caro Michigan. (Insolvent) 'trat National Bank, Bay City, Lich. (Insolvent) 60 480 540 National Bank, Mt. Carmel, Ill. (V.L.Abs. by American-First National Bank of it. Carmel) i vIzens National Bank, Sedalia, Lio. (Insolvent) brat National Bank, Christopher, Ill. (Insolvent) ;Irst National Bank, West 7rankfort, Ill. (Insolvent) National Bank, Corinth, Eiss. (Insolvent) 90 180 51 60 72 453 ti"13"-b erioan National Bank, Lake Crystal, Einn. (V.L.Abs. by First National Bank of Lake Crystal) 22 22 Valley National Bank, Topeka, Kansas. (V.L.Abs. by New Valley State Bank) 75 Total 75 4,105 Approved. • Reports of Standing Committee dated December 17 and 23, recommending "ti011 on applications for fiduciary powers by the following banks: bi et Noi. The Thomaston National ,Bank, Thomaston, aine. (Powers 1-3, 5, 8 and 9. Confirmatory. Consolidation of Georges National Bank and Thomaston National Bank) Approved. 12/23/31 -10- ict No. 1. The Barnstable County rational Bank of Hyannis, Mass. (3374) Held. Reports of Standing Committee dated December 23, recommending approval °r the following Clayton Act applications: W. 2. Carter for permission to serve at the same time as director of the First National Bank in St. Louis, Mo., and as director of the Industrial Savings Trust_ Company, St. LOU'S, r.a. 1,1r. 3. Ii. KUrn for permission to serve at the same time as director of the First National Bank in St. Louis, Mo., and as director of the Industrial Savings Trust Company, St. Louis, I:b. Ex, C. C. Benton for permission to serve at the same time as director and officer of the First National Bank of Waynoka, Oklahoma, and as officer of the Exchange National Bank of Tulsa, Oklahoma. Er. Rawleigh Warner for permission to serve at the same time as director of the Central Republic Bank and Trust Company of Chicago, Ill., as director of the City National BAnk and Trust Company of ILvanston, Ill., and as director of the Drovers National Bank of Chicago, Ill. Mr. David R. Forgan for permission to serve at the same time as director of the Central Republic Bank and Trust Company of Chicago, Ill., and as director of the City National Bank and Trust Company of Evanston, Ill. Approved. The meeting adjourned at 12:15 p. Secretary. 4DProved: Governor.
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