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A meeting of the Executive Committee of the Federal Reserve Board 1148 held in Viashington on Friday, December 23, 1932, at 11:45 a. in. PRESLIT: Governor lieyer Hamlin Mr. Junes Mr. Magee Mr. Morrill, Secretary Mx. McClelland, Assistant Secretary Ur. Harrison, Assistant to the Governor. The Committee considered and acted upon the following matters: Letter dated Aecember 22, 1932, from the Secretary of the Federal e Bank of I;ew York, and telegrams dated December 21 and December 22, 1932 from the Chairmen of the Federal Reserve Barks of St. Louis and 8 ,aty, respectively, all advising that at meetings of the boards of clizectozz on the dates stated no Changes were made in the banks' existinr leclIlles of rates of discount and purchase. 'dithout objection, noted with approval. Telegrun to the Governors of all Federal reserve banks, approved 1lYthrA -8 nembers of the Board on December 22, 1932, advising that the Ic es of the Board will be closed on December 24, 25 and 26, and December J'enuary 1 and 2; that the Bureau of Engraving and Printin7, will also to el ctsed and currency Shipments cannot be nade OR the dates stated; that toqqestR for currency shipments on December 23 and 30 should be received 114 ?lash, ingten early on the mornings of those dates; and that the Gold 4t-0 4-Q111e/it ?und Division of the Board will operate as usual on December 24 4401 31. Approved. th LIemorandum dated December 16, 1932, fronitir., Goldenweiser, Director e lAvision of Research and Statistics, recommending the temporary 362 12/23/32 -2- 41101ntment for the period from December 19, 1932, to April 1, 1933, of 141'e• Mildred Corder to the position of stenographer in the division, with 84417 at the rate of 4130 per month; the recommendation having been oved by three members of the Board on December 21, 1932. Approved. Letter dated December 20, 1932, from the Chief Clerk of the 14414181117 Department requesting that Mary G. Cumberland be appointed on the 411 Of the Federal Reserve Board to the position of charwoman, effective 44ftaber 21, 1932, with compensation at the rate of 50ç per hour, to take tile Place of Teanette Thomas who died on December 18, 1932. Approved. Letter to the Federal Reserve Agent at Philadelphia stating that, 141teoammended in Assistant Federal Reserve Agent Bill's letter of December 191 1932, the Federal Reserve Board has approved the designation of Ur. 41114 W. Harris, an employee of the analysis department of the bank, as a assistant to examirers. Approved. Reply, approved by three members of the Board on December 21, to Itletter of December 16, 1932, from the Governor of the Federal Reserve IlEttkic or Minneapolis stating that the executive committee of the bank has 41411„. "aazed the extension, for a period of not more than three months, of lhe A.eave of absence without pay previously granted to Mr. R.E. Towle kta 41.11g Director of the Helena branch, to enable him to take charge of the 'nal agricultural credit corporation at Spokane, Washington. The reply lkotea Without objection the action of the executive committee and requested tkEkt the Board be advised promptly of any change in Mr. Toale's status. g.t.r9 12/23/32 -3Approved. Telegraphic reply to a letter dated December 17, 1932, from the Pe4eral Reserve Agent at San Francisco, requesting approval by the Board or the appointnent of Er. S. G. Sargent as .-;hief Examiner for the bank and 4° A. Sonne, H. Do Swengel and G. A. Snow as examiners, during the year 1933. The reply stated that the Board approves the appointments referred to. Approved. Replies, approved by four nenbers of the Board on December 21, to letters dated December 13, 1932, from the Acting Comptroller of the Currency, 1111atending approval by the Board of an increase in the salary of Er. 1341dridge, recently appointed Chief national Bank Examiner for the lAnth Reserve District, from 35,700 to 310,000 per annum, and an increase LI the salary of Er. L. L. Eadland, recently appointed Chief National Bank Miner for the Twelfth Federal Reserve District, fran $12,000 to a3,000 Der an.num• Approved. Telegraphic reply, approved by five members of the Board on December .k.)‘, to a telegram dated December 19, 1932, fram Deputy Governor Rounds °r the Federal Reserve Bank of new York, requesting authority for an (11it10na1 advance, in accordance with the provisions of section 10(b) (11' the Federal deserve Act, as amended, to the First National Bank in tkial alleneck, New York, in the amount of :A2,000, for a period of sixty days, 171t4 interest at the rate of 5 1/2(:, per annum, and on the security of el1aneous bonds, customers' collateral notes, and guaranteed mortgages 141 " ith a margin of at least 25714 Deputy Governor Rounds stating that the bank Iles to suffer withdrawals in moderate amounts which are dangerous 564 4/23/32 -4- of the bank's poor cash Position. La,. Rounds also stated that the 4°Ilrity to be used as collateral for the advance has been pledged with a cQIT'sePondent and that the member bank will redeem the security and pledge it With the Federal reserve bank at the time the advance is made. The 4PlY stated that the Board authorizes the advance subject to the terms and e'(311dit ons recommended. Approved. Telegraphic reply to a telegram dated December 22, 1932, from 1)eLltY Governor Rounds of the Federal Reserve Bank of New You:, requesting ktilority for the renewal for a period of sixty days from December 23, interest at the rate of 5 1/2,-J per annum, of the advance in the amount °11 '4;35,000 made by the New York bank in accordance with the previsions of section 10(b) of the Federal Reserve Act, to the Bank of Depew, New York, 1444er the authority granted in the Board's telegram of September 24, 1932, '11.tY Governor Rounds stating that the member bank is unable to repay the 44174rice at this time as it is still safferinj, a seepage of deposits. The Y stated that the Board authorizes the renewal of the advance subject to tlle terms and conditions recommended. Approved. Telegraphic reply to a telegram dated December 22, 1932, from 114A4ty- Governer Rounds of the Federal Reserve Bank of New York requesting kltherity for the renewal in the reduced amount of :)28,000, for a period ty days from December 23, with interest at the rate of 5 1/2% per killzra, of the advance made by the New Yotk bank in accordance with the Dtovisions of section 10.(b) of the Federal Reserve Act, to the Labor Nti°nal Bank, Paterson, New Jersey, under the authority granted in the. ( 565 12/23/32 Nald's telegram of September 22, 1932; Deputy Governor Rounds stating that Illemember bank has advised that it is not in a position to liquidate the itdebtedness at this time. The reply stated that the Board authorizes the ' lellevtal of the advance subject to the terms and conditions recommended. Approved. Telegraphic reply, approved by five members of the Board on QeMber 20, 1932, to a telegram of that date from the Governor of the ?ecleral Reserve Bank of Atlanta, requesting authority for an additional tcilrelice to the Georgia Savings Bank and Trust Company, Atlanta, Georgia, accordance with the provisions of section 10(b) of the Federal Reserve ltet, as amended, in the amount of ;50,000, with interest at the rate of 1/a/7) per annum, payable on demand with interest payable monthly, and on the 8e0urity of the member bank's equity in the collateral now held by the ?eri -eral reserve bank for the 10(b) advance in the amount of '390,000 made 4/1cler the authority of the Board's telegram of Tune 15, 1932, and :50,000 1(1ditional collateral; Governor Black having advised the Secretary of 130ard over the telephone that the bank has reduced the original 10(b) "11411Ce to 4;731,152.90, and now finds, because of conditions similar to 410e which existed when the original 10(b) advance was made, that additional 44 are required. The reply stated that the Board authorizes the advance illbject to the terms and conditions stated, and that in the event the Ce Is not repaid nor demand for payment made by February 10, 1933, t/1e Illatter should again be brought to the Board's attention with a state- 441t Of the circumstances which, in the opinion of the Federal Reserve Bank Or Atlanta, justify the bank in continuing the advance without derand for r4 566 12/23/32 _6_ ,.• DaYillent. Approved. Telegraphic reply to a letter dated December 20, 1932, from the %)Ver4or of the Federal Reserve Bank of Atlanta, requesting authority for 111c renewal, for a period of sixty days from December 31, 1932, with illterest at the rate of 5 1/2,3 per annum, of the advance in the amount of . 140,000, made by the Atlanta bank in accordance with the provisions of "ion 10(b) of the Federal Reserve Act, to the First National Bank and I'L3t Company in Orlando, Florida, under the authority granted in the 11°'41*(1's telegram of Tune 28, 1932; Governor Black stating that the same l'1414011s exist for a renewal o2 the loan as existed for the original advance. 111e relay stated that the Board authorizes the advance subject to the terns 44c1 conditions recommended. Approved. Letter to Er. Leo H. Paulger, Chief of the Board's -Division of llations, stating that in accordance with the requirement of section cr the United States Revised Statutes, as amended by section 21 of : Oederal Reserve Act, the Federal Reserve Board has ordered that at 1EL8t one examination of each Federal reserve bank be made during the year 463; and that the Board authorizes and directs Lir. Paulf;er to institute ejlci conduct such examinations at such tine or times as may seem advisable 14418 judgment. Approved. Letter to the Liarbait Street National Bank, Philadelphia, Penryl4414, approved by three members of the Board on December 21, 1932, statinc, tt ill addition to the authority previously granted to the bank to act as • 567 -7- 12/23/32 ttlIstee, executor, administrator, registrar of stocks and bonds, guardian or estates, assignee, receiver, or in any other fiduciary capacity in which StaLte banl-- trust companies or other corporations which COMO into competition national banks are permitted to act unner the laws of the State of 4411sylv3nia, the Federal Reserve Board has approved the bank's application Permission to act, when not in contravention of State or local law, as 10)Ir4ttee of estates of lunatics, the exercise of such right being subject tc) tile Provisions of the 2ederal Reserve Act and the regulations of the deral Reserve Board. Approved. Telegram to the Federal Reserve Agent at Dallas requesting that he ' I 4cIvise the Commercial National Bank in Shreveport, Louisiana, that the Fed13140- Reserve Board approves its application for permission to act, when not Contravention of State or local law, as trustee, executor, administrator, Nistrar of stocks and bonds, guardian o: estates, assignee, receiver, %Iltlittee of estates of lunatics, or in any other fiduciary capacity in 171lich State banks, trust companies or other corporations which come into eorn, 'vetltion with national banks are permitted to act under the laws of the Nte Of Louisiana, the exercise of all such rights being subject to the 1:4`ovi of the Federal Reserve Act and the regulations of the Federal lioae 130ard. The telegram also stated that the Board understands that 00 111111-ercial National Bank in Shreveport has agreed that it will not -11'eat I\lfldS of any trust handled by it in the securities of the Commercial INtiorol Company, Incorporated, or of any other concern in which directors -,er3 ri of the bank are interested; also that the vanagement of the bank has removed from the trustsof the old Commercial Eational 568 12/23/32 84nk of Shreveport, which are under its supervision, all securities of the C°11.4ercial National Company, Incorporated. The telegram further stated that letter being addressed to the Commercial National Bank in Shreveport with tegard to its authority to exercise trust powers sets forth the understanding or the Board in more detail. Telegram to the Federal reserve agent and letter to the Commercial National Bank in Shreveport approved, together with a letter to the Acting Comptroller of the Currency stating that the Board will appreciate it if, at the time of the next examinat1on5 of the trust department of the Commercial National Junk in Shreveport and the trust assets remaining in the Commercial National Bank of Shreveport, he will instruct the exaniner to report particularly as to whether the management has proceeded in accordance with the Board's understanding. Letter to the Federal Reserve Agent at Kansas City, approved by thee members of the Board on December 21, 1952, stating that the Board has 4e1-11 considered the application of the Union National Bank, Bartlesville, for pernission to exercise certain additional fiduciary powers 44(1 that in view of the fact that the present officers of the bank have not 114 ' 41.1.3r training or experience in handling trust matters, and the managetrtelit has no plans for the supervision and operation of the trust department, 4ta • view of the continued unsatisfactory condition of the bank, the 0,4 d has denied the application. Appr.oved. Letter to the Federal Reserve Agent at Boston, approved by three 441ber5 of the Board on December 21, 1932, advising that from the information 414'*atted by the agent's office it is apparent that the action of the United ttlt es Trust Company of Boston, 17Assachusetts, in purchasing the assets and e4441Ilik; the liabilities, effective as of December 31, 1931, of the Bank of 569 12/23/32 -9and Trust Company of Boston, resulted in no material change in the elleral character of the assets of, or in the scope of the functions e lreised by, the United States Trust Company within the meaning of the %ieral condition under which it was admitted to membership in the Federal liese o rve System, and the Board will take no action affecting the membership the institution by reason of the transaction. The letter also requested that in view of the unsatisfactory condition of the United States Trust Cc q3anY, the agent keep in close touch with the situation and arrange fcr 13Ellticipation in the next examination, keeping the Board advised of any q"'elopments in the condition of the institution in the meantime. Approved. Letter to the federal Reserve Agent at Cleveland replying to a letter dated December 5, 1932, from Assistant Federal Reserve Agent Fletcher ItIclesing a copy of a letter from the Treasurer of the Commonwealth Trust Pittsburgh, Pennsylvania, with regard to the holding by that 14,S tl 41t1 tion of Shares of its own stock as collateral for certain loans; the eUrerts letter stating that the stock does not appear on the records of th. A Truz;t company, that the stock was accepted by an officer because of margins in the accounts in question, and that the shares were placed t4 safe deposit box and not enumerated on the note or on the collateral l'ee°1'd. The reply stated that it is apparent that the holding of the shares ti'. -le manner is contrary to the provisions of section 9 of the Federal Nite I've Act, and the Board will expect the trust company to keep the matter a---Y in mind and dispose of the stock as soon as it is practicable to do and that if the matter is not adjusted by the time of the next exami114t10 /1 the agent is requested to advise the Board 2ally regardin7, its 12/23/32 -10- status, tcy_;ether with his recommendation. The reply also stated that it is. felt that the holding of collateral by a bank or trust company in the 4allner described is not in accord with good banking practices, in that the records of the institution do not properly reflect the security to loans ilxvolved, and suggested that the agent advise the trust company of the 1/( rd's attitude in the matter. Approved. Letter to the Federal Reserve Agent at Cleveland referring to the 411aaYs1s of report of examination as of liey 14, 1932, of the Crawford C<)tIlltY 7rust Company, Lieadville, Pennsylvania, and requesting, in view of the condition of the institution as disclosed by the analysis, that the Cellt discuss with the Secretary of Banking of the State of Pennsylvania, the question as to whether the institution's dividends dhould not be reduced, 11 'tot entirely eliminated. the The letter also requested the agent to advise Board of the results of such discussion, and of any action taken or 131 ' 01)0sec:1 by the trust company to correct the other criticisms listed in the 41)41yeis. Approved. Letter to the Federal Reserve Agent at Richmond advising that in View Of the information submitted in his letter of December 9, 1932, the •„ will take no action at this tine with regard to the holding by the --wact Valley Bank, Charleston, 'jest Virginia, of 35 shares of its own 4toe k as part collateral to certain loans, although the Board will expect the.It stitution to keep the matter constantly in mind and to dispose of the to beforethe date of the next examination if practicable to do so. The 571 12/23/32 -11- letter also requested the agent to advise the Board, within a reasonable Lle, as to the progress made by the bank in this connection. Approved. Letters to the J'ederal Reserve Agents at Cleveland, I:lanes:polls, ellal:ansas City, with regard, respectively, to the continuous reserve (lefieiencies of the Paulding National Bank, Paulding, Ohio, the State '3anl: °I' Revere, Ilinnesota, and the Security National Bank, Randolph, Nebraska; the the replies stating in each case that, in view of the information subnitted, Board will take no action with regard to these deficiencies at the stesent tine other than, in the case of the national banks, to forward e°Pie8 of the agent's letters to the Acting Comptroller of the currency for the information of his office. Approved. Reply to a letter dated October 21, 1932, from the Federal Reserve - at Atlanta with regard to the continued reserve deficiencies of the Lational Bank and Trust Company in Orlando, Florida; the reply stating tIlat In • viuu of the infonnation submitted, and in accordance with the 4 e/Itt s recomviendation, the Board will take no action in the matter at this title Other than to forward a copy of the agent's letter to the Actinc, C°111Ptl'oller of the Currency for the information of his office. The reply kleo Colled attehtion to the severe criticisms of the administration of the tt department of the national bank, contained in recent reports of ell11144tion, and inclosed a copy of a letter addressed by the Board to the kt14g Comptroller of the Currency, stating that it is assumed that his clibiee Will follow up these criticized matters vigorously as well as take such 414s1)8"May be feasible to obtain the correction in the condition of the 572 12/23/32 -12- ecItmercial department of the bank which the report of examination indicates is necessary. Approved. Letter to the Federal Reserve Agent at San Francisco, replying to 11U letter of December 5, 1932, with regard to penalties for deficiencies in teserves which have accrued or which have been collected from the 'National 13ank Of Commerce in Los Angeles by the Federal Reserve Bank of San Francisco -ce Xanuary 11, 1932, on which date the assets of the national bank were t t14.0 over and its liabilities assured by the Los Angeles Clearing House 4420ciation for the purpose of liTaidation. The reply stated that, in view the unusual circumstances in this case, the Board waives the assessment 441 collection of penalties for deficiencies in reserves of the national 1)Ikwh1ch have occurred since :ranuary 11, and authorizes the Federal reserve 11.441- 40 return to the national bank the amount of penalties which have been 'clazeted by it for reserve deficiencies occurinp; since that date. Approved. Reply to a letter dated December 10, 1932, from the Federal Reserve kae t at Richmond advising that 1:r. Charles C. Reed, recently elected a class ' reetOr of the bank, is also serving as Chairman of the Board of SuperVizo of Chesterfield County, Virginia, and as a merber of the CoLtnission rcr.c. 311IlPlification of Government appointed by the Governor of Virginia, and ' InC whether, in view of lir. Reed's statement that he is unwilling to N44_ . taalt the fanner position, the agent should secure his resiEnation as a i'e \;t°1* of the Richmond bark. The reply stated that in view of the agent's i(etn IlDtion of the situation with respect to ' La.. Reed's membership on the t4rain -ulon for Simplification of Government, the Board would interpose. no 573 12/23/32 -13- objecti0n to his retention of that position while serving as a director of the hltIlk. The reply also stated that it appears that the position whichrr. Reed (1".Pies as Chairman of the Board of Supervisors of Chesterfield County is el".rly one of a type which comes within both the letter and spirit of the 8°ard's resolution of December 23, 1915, and while it appears that Y.r. Reed's 4ceePtance of the position was actuated by a commendable desire to serve the 1)4blic interest in his community, this does not afford a sufficient basis exceyting his case frora the operation of the sound principle embodied the resolution; that it seems to the Doard that the approval of exceptions 14 eazes such as this would inevitably lead to the practical nullification or the resolution; and that while it is regrettable that the possibility that kr. ,aeed would be ineligible to serve as a director of the Richmond bank 7/84 not brought to his attention before his election, there seems to be no collrce ooen except for the agent to request his resignation. The reply tlIrther stated that it is assumed that the agent will arrange in the future to 84eertain the facts regarding any position which a nominee for election e8 (lirector of the federal Reserve Bank of Richmond may hold which would e44B within the letter or spirit of the Board's resolution, with the view °r 41braliging with the nominee for the removal of such disqualification bero he enters upon his service as a director, if elected, or of having the 14°111111ati011 withdrawn, as the circumstances of the case may require. Approved. Reply, approved by three members of the Board on December 21, to a letter dated December 1341ted. States 1932, fromi:i. 1]. C. Babcock, Secretary of the 1vIl Jervice Commission, requesting info,c.mation concerning 12/23/32 -14- administrative furloughs granted by the Board during the fiscal year 1933 PlIrsuant to the provisions of section 216 of the Act of Tune 30, 1932, which directs the heads of the various executive departauents and independent est ablishments of the Government to furlough employees without pay for such *le as may be necessary "in order to keep within the appropriations made tor the fiscal year 1933". The reply stated that the expenses of the Board 44i the salaries of its members and employees are not paid by appropriations Y Congress but are derived from semi-annual assesLments made by the Board 14104 the Aderal reserve banks; that accordingly, the provisions of section 216 of the Economy Act do not require the furlough of the Board's employees; 411d that in the circumstances the Board has not undertaken to execute the t°1111 transmitted with the Secretary's letter. With The reply also stated that the exception of leave without Day granted upon the request of klPloYees, the Federal Reserve Board has not placed any of its employees 1/11)(14 furlough without pay during the current fiscal year. Approved. Letter to Deputy Governor Rounds of the Federal Reserve Bank of riew l'ork approved by four members of the Board on December 22, replying to his - of December 9, 1932, requesting a ruling of the Board on a question `" by 17r. Paul L. Haid, President of the Insurance Executives Association, to the eligibility for rediscount at a Federal reserve bank of notes ' 1fl ellea,, A 4tatsla or e payment for premiums for insurance by persons, firms or corporations in the production, manufacture or distribution of goods. The reply taat it is the opinion of the Board that notes of such persons, firms 1 .% Dorations given in payment for premiums for insurance customarily cleerae necessary in the business of producing, purchasing, carrying, or 12/23/62 -15- Inark.etinc goods, or the proceeds of which are to be used for such purposes, Oe notes issued for comnrcial or agricultural puyooses viithin the meaning °t Regaation A, and that accordingly, such notes are eligible for discount Pederal reserve banks if they comply in other respects with the applicable ' illemisions of the law and the Board's reoalations. that The letter also stated a note which is thus given for an eligible purpose is not rendered lAeligible by the fact that it may subsequently be indorsed by an insurance ecitPany or insurance agent. Approved. Letter to the Federal Reserve Agents at all Federal reserve banks, 41-31'°1Ted. by four mmbers of the Board on December 22, 1932, transmitting eviaecl definitions for the use of member banks in connection with the 13reParat1on by them of the revised Form 105, condition report of State rember ban , as well as supplemental schedules designed to obtain information affiliates of member banks and the issuance of real estate 111(Irtliges, mortgage participations and mortgage bonds by meiber banks, either aire etlY or through affiliated companies. Approved. L:emorandum dated December 21, 1932, from 11r. Smead, Chief of the sl°11 of -3ank Operations, and approved by three members of the Doard on that d -ate recornmending that the gold amounting to [195,550,000 which had beeii earmarked by the Bank of England for the account of the Federal Reserve 8tro, c`r liew York in connection with the payment to the iTnited States by 4eat -rituin of the December 15 instalmnt on the war debt be shown in the t 3 Vieekly statement of condition of Federal reserve banks a,-,ainst the e41)tir, -11 "Geld Held Abroad'', wad that the text of the weulfray statement contain 576 12/23/32 -16- the following statement with regard to the transaction: "During the week the Federal Reserve Bank of New York, in connection with the December 15 payment by the British Government to the United States, made available in New York for account of the Bank of Ingland gold to the amount of .95,550,000, against the earmark in London, pending shipment to New York, of an equivalent amount of gold for the account of the Federal Reserve Bank of New York. This gold is shown in the statement as 'Gold Held Abroadt." Approved. Letter to the Governors of all Federal reserve banks inclosing a vY Of a statement in the amount of 45,746.73 submitted by Honorable lieWton D. Baker covering his fee in connection with his services in the of Federal Reserve Bank of Richmond v. Attmore and Lucas v. 7ederal 48erve Bank of Richmond and in other related litigation, and stating that this statement has been approved by the Board and the board of directors of the Federal Reserve Bank of Richmond and has been paid by the Richmond bank; til4t _ Lx. Baker's services in these cases were authorized as a System matter; e lld that it is requested, therefore, that each Federal reserve bank remit ' to the Richmond bank its pro rata share of the expenses as indicated in the l ttor. Approved. Lemorandum dated December 20, 1932, from the Committee on Salaries 411c1 74XPenditures with regard to the requests received frau the Federal eerve banks for authority to 'take certain year-end charge-offs, to create 444 Illeae additions to reserves, and to nay the regular semi-annual dividend 4t the end of 1932. Consideration was given to the various recommendations Or the Committee and, in accordance therewith, it was decided: 577 12/23/32 -17- (1) To request each Federal reserve bank to return directly to its surplus account on December 31, 1932, before closing the books, the amount set aside out of surplus at thf- end of 1931 as a reserve to cover depreciation on United States Government securities; the appreciation on Governnent securities daring 1932 having been substantially in excess of the amount of the depreciation reserve. (2) To authorize the Federal reserve banks to make the usual additions to their reserves for depreciation on bank premises and fixed machinery and equipment; to authorize the Uevi York bank to charge off the cost of alterations to the Buffalo branch building in the amount of :44,000; to authorize the Cleveland bank to reduce the carrying value of the vault doors and vault equipment in the old Pittsburgh branch building to their estimated salvage value of 40,000; and to advise that bank that of the ,)8,228.46 of miscellaneous expenses connected with the now Pittsburgh branch building, which the bank proposes to charge to profit and loss, it appears to the Board that .:y1,500 of this amount, representing fees, should be considered as a part of the cost of the building and that the balance should be charged to current expenses, also, that the cost of replacement and new installations of fixed machinery and equipment in the head office building in Cleveland, amounting to 40,005.44, should be charged to the fixed machinery and equipment account or to the depreciation reserve on fixed machinery and equipment. (3) To authorize each Federal reserve bank to charge off the amount of furniture and equiprent purchased during the year. (4) To authorize each federal reserve bank to charge off its share of depreciation in the Sterling balance carried with the Bank. of England. (5) To authorize each Federal reserve bank to pay the regular semi-annual dividend. (6) To authorize the Federal Reserve Banks of Chicago and i:ansas City to set up reserves for self-insurance in the amount of ;500,000 and 400,000, respectively, and the Federal Reserve 3ank of Boston in the amount of .:„3300,000 or such larger multiple of .50,000 as can be set up from net earnings remaining after the payment of dividends; to authorize the Federal Reserve Banks of Clevelan(L and Jan Francisco to make additions to their self-insurance reserves in the amount of 250,000 and .500,000, respectively; to authorize the Federal 2eserve Banks of I:ew fork 578 12/23/32 -18and :linneapolis to make additions to their self-insurance reserves in amounts equal to the earnings on the United States Government obligations in which the present selfinsurance reserve funds are invested, and to advise the Federal Reserve Bank of Dallas that as the bank's earnings will not be sufficient to cover dividend payments and any addition to the reserve for self-insurance would result in a corresponding reduction in the surplus account, the Board does not approve the increase proposed by the bank of .500,000 in its self-insurance reserve. (7) To authorize the Federal Reserve Banks of Philadelphia, Cleveland and Richmond to charge off certain expenses in connection with "other real estate." (8) To authorize the Federal Reserve Banks, of Cleveland, Richmond, Atlanta, Chicago, '1701.neapolis, Kansas City and San Francisco to make certain additions to their reserves for probable losses. (9) To authorize the Federal Reserve Banks of New York, Philadelphia, Atlanta, Chicago, St. Louis and Dallas to charge off certain sundry items. Governor 1:eyer then stated that he had discussed with the Chairran °t the Open Earket Policy Conference the Question of holding another neetin,-, ot the conference Shortly after the turn of the year in accordance with the 11114erstanding had at the meeting of the conference on November 15, 1932, 11114 Governor Lieyer inquired if it would be agreeable to the members of the 130 , excl to hold a meeting of the conference on ;Tednesday, Tanuary 4, 1932. 411 °r the members present approved the holding of a meeting on that date. Reports of 3tan0.ing Comittee dated DeceMber 21 and 23, 1932, recorn 1°84dine approval of the following changes in stock at Federal reserve banks: Shares 4 1)41/11cation for ORIGINAL. Stock: oil at National Bank of Sulphur Springs, Texas. 45 4 1. bi ataons for SURRENDER of Stock: tieZ$1.1LLIt...6 15 'National Bank, Reynolds, Ga. (Insolvent) 45 15 1.0 * 1q23/;,52 411 -19Shares ications for MUMMER of Stock: (Cont.'d) o. 9. National Bank, Crosby, N. Dak. (Insolvent) t r 10 "irst i;ational Bank, L3t. -7rancis, Kan. (Insolvent) Pa rA• National Bank, Sulphur, Okla. (Insolvent) DiStriC t 1- 18 18 30 18 48 11 . -rt National Bank, Del Rio, Texas. (V.L.Abs. by Del Rio National Bank) tsCltY National Bank, Georgetown, Texas. (Insolvent) ab1na.1 National Bank, Sa.binal, Texas. (V.L.Abs. by the Sabinal State Bank, nonmember) Distr. 12. 1111a National Bank, Manna, Idaho. (Insolvent) , 44-vet 1 National Bank, Vioodlake, Calif. (Insolvent) vale National Bank, Vale, Oregon. (V.L.Abs. by Ontario National Bank, Ontario, Oregon.) tlirst State Bank, Gresham, Oregon. (Insolvent) 8411c of Coranerce, ',/asco, Oregon. (Insolvent) 180 60 7 272 21 17 36 33 40 Total 147 500 Approved. Thereupon the meeting adjourned. tALQ Secretary. 41)I.3r()Vet ' overnor.
@FedFRASER