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3715 Areeting of the Federal Reserve Board was held in Washing- ton Thursday, December 6, 1934 at 3:30 , p. iii. PRESENT: Mr. Er. Er. Mr. Mr. Mr. Eccles, Governor Thomas, Vice Governor Hamlin Miller Janes Szymczak Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary The Board acted upon the following matters: Telegrana dated Dece mber 6, 1934, from Mr. McAdams, Secrethe Federal Reserve Bark of Kansas City, and Mr. Sargent, 8"retary of the Federal Reserve Bank of San Francisco, both advising tEry or tli4t1 Ett meetings of the boar ds of directors today, no changes mere rP4cle 41 the b nyd, ---s' existing schedules of rate ehtxses s of discount and pur- Without objection, noted with approval. Me morandum dated December 4, 1934, from Er. Morrill, Secrerecortnending that, in order to provide offices for the Division °t8"urities Loans, the Board auth orize the rental of five adjoining roota, comprising a total of 1,323 square feet, on the seventh floor tEtry, e'tll °n the at a cost of ,,12.50 a square foot per annum, basis of the Board's present leases with the Shoreham InCompany. The memorandum stated that all alterations, in%4414;the door renoval of three partitions and the insertion of two ei Etre t0 be made by the management of the Shoreham Building .Nttillext 3716 (1) 12/6/34- -2- Without cost to the Board. Approved. Telegram to L. Walsh, Federal Reserve At-_;ent at the Federal Reserve Eank °f Dallas, referring to the application of the "First State Bank of Canyon, Texas", Canyon, Texas, for permission to withitz ediately from membership in the Federal Reserve System, and tte'tin tat h the Board waives the usual requirement of six months' 11°tioe cf intention to withdraw and that, accordingly, upon surrender °r the Federal reserve bank stock issued to the First State Bank of C841Y0n, the redo ral Reserve Bank of Dallas is sileh authorized to cancel stock and make a refund thereon. Approved. Letter to ler. I:evrton, Federal Reserve Agent at the Federal Bank of Atlanta, reading as follows: 4 4"PLeceipt is acknowledged of your latter of I;ovember 28, L0113:3,rcgarding the American Lank c Trust Co., iew Orleans, lsiana, which was last examined by your 4raine 1c33.re. for examiners and exthe State Banking Department as of December 9, .1.4 AttnIst IV of the fact that the bank was examined of . ./i'aio,-1 ' 14 51 1934, by national bank examiners in connection vath the ion for conversion into a national bank, and that Plication for conversion has been filed with the Comptrelir he C at ,e1L104 canurrency, it is believed that in this instance be made to the general policy of leas requiring (14rin; `' °fle regular ex 'nation of each State member bank it egeh calendar year. In the circumztances, therefore, tiori Lms apPropriate that you delay arrangements for participaTruct Y°1-1r e xaminers in the examination of the American tank ever, te., 0 1 after January 1, until 1935. It ic assumed, hownle ti.:4t if the conversion is not effected within a reasonope , the bank will be examined by your examiners, either ncientlY or in cooperation with the State authorities. erlie Approved. 3717 1V6/31 -3Letter dated Lecenber 5, 1934, approved by five members of the Board, to Li.. Stevens, Federal Reseri,e Agent at the Federal Re8erve Bank of Chicago, reading as follows: , l'ecei :pt is acknowledged of Lr. Young's letter of November in regard to the absorption of t1 Farmers Savings i-' 1 Elairsburr, Iowa, a nonmember bank, by the 'ilillians Savgs 'hillia, Iowa, a member bank. bili+.In view of the comparatively small amount of deposit haassumed, and the fact that the bulk of the assets acconsisted of cash, it seems apparent that there has been . no material chance in the character of the business of, or b, 2n the scope of the corporate powers exercised by, the member 1,11 , and the Board, in accordance with your reconmendation, i nterpose no objection to the transaction. have he Ivn forward to the Board, that vou will forrd . able, , copies of any contract or agreement -which may been all 0 'een entered into by the respective banks, together with tionPill°n by your counsel as to the legality of the transacthe ' t is assumed, of course, that the absorption has had aPProval of the State Banking Department." Approved. Letter dated December 5, 1934, approved by five members of he to Lr. O'Connor, Comptroller of the Currency, reading as 1'1311017z: erve accord ance with your recommendation, the Federal 11ot °ard approves a reduction in the common capita- stock o cap°' cV:A°rZallfield National Bank', Llorganfield, Kentucky, from Ce20: 0c;7 to .05,000 pursuant to a plan which provides that loee the released ca:ital shall be used to eliminate . diet4Isnd other Substandard assets, and that 4,,5,000 shall in to the shareholders of the bank, all as set fort: your o merarandum of November 24, 1934." Approved. Letter dat the d December 5, 1934, approved by five members of coard, to 1,Ir. 4etr,ve Vialsh, Federal 2xserve Agent at the Federal J4a1k of Dallas, r eadinEr, as follows: 3718 -4"This refers to your letter dated November 7, 1934, regarding the vote theissuance of a voting permit to Armour and Company to sLock which it owns or controls of the Stockyards 1;1110nal Lank, Fort -iCorth, Texas, for the purpose of placing such 1 voluntary liquidation. IN'orth,-Lk, is understood that the Fort Worth National Bank, Fort Texas, has taken over -Lae affairs of the Stockyards Nafl43 and that represent-tives of -T the two banks have ' tju:;red of you concerning the procedure to be followed in obR-,71411C a surrender and cancelation of the stock in the Federal yserve Bank of Dallas owned by the Stockyards National Bank. B°111 state that it is your view that the Stockyards .:tional zlillez.rstzt311d be placed in voluntary liquidation and that thereproceedinrs outlined in F.R.B. Form 86 should be z,;:11'and you request to be advised whether the Federal 1e-1:',a- ve roard concurs in your view. Assuming that there has not stn a con solidation of the two national banks, and that the c:kYards ITational Bank continues to exist as a separate 014°rrate entity after its affairs have been taken over by the Viorth the pr ilational Bank, it is the opinion of the Board that etre ocedure , outlined in your letter is appropriate under the s' I le,Federal Your ooun Reserve Board agrees with the opinion of ovited .el that the stock of the Stockyards National -)-- .7ec favor °r e onLrolled by Armcur and Company could not be voted in obtai: f f; v°1-untary liquidation of the bank unless such company such '1 ': a veting permit authorizing it to vote the shares for 401c1CP°e. Idowever, since Armour and Company will net be a tion ,,, "InPany of any member bank after the liquida-J- the st affiliate 1 ]. nob oceyards National Bank, the Federal 1- - eserve Board Usuall, requirquire re it to file all of the information And exhibits with 41 e' of , eu holding company affiliates in connection par, t IPP-Lieation for a voting permit. Consideration will be ,i.° L the issuance of a voting permit to the company authorof tile l6 c. to vote the shares of stock which it owns or controls tEtrik ie.°"L"kYards liational Bank for the purpose of placing such Of a 4 voluntary liquidation, upon the filing by the company t'er,°Pi_le,r1Y executed application consisting of F.R.B. Form e,'"er with Exhibil A and Exhibit C, F.R.B. Form P-2. lee nl, i.h0 a r „ 'eve mentioned application and exhibits include t -he 1,33.4Znts zhich section 5144 of the levised Statutes of te to states, as arended, requires the holding company aferinit, , , xecute as a part of its application for a voting ng neo Federal Co Reserve Board has no authority to waive , ution of such agreements, but you may inform Armeur and n44PallY tlwet it oon such agreements will cease to be binding upon itke lber ," it ecialk. ceases v to be a holding campany affiliate o 'ou may also advise Armour and Company that the 3719 12/6134 -5n 1Deard will not require it to furnish Exhibit L, F.R.B. Form 73 'in connection with consideration of the issuance of a :lataited voting permit to the company for the purpose of plac;11 .1g the Stockyards National Bank in voluntary liquidation. 8 6 "InPany should be advised, however, that the Board reIterves the right to require additional information, if this &ears to be necessary in connection with consideration of the application. The company should also be informed that pee Board will defer consideration of such a limited voting 114:!1:iit until an application is received, and consequently is ole to state at this time whether such a permit will be Sued. pan "It In*11 be appreciated if you will advise Armour and ComY and the stockyards National Bank of the Board's views rethe matter." .1, 1 Approved. Memorandum dated November 28, 1934, from Lr. Smead, Chief Division of Bank Operations, submitting a copy of Form 107, etta,alanalca report of earnings and dividends of State member banks, Et114 113°0)M:tending that the changes indicated on the form be incorP°rEtted 4 -Ln the form to be used in rendering reports for the six tontha ending December 31, 1934. The memorandum stated that it is ItIderstood that cor responding changes are being made by the office "tale COIITtrOlier of the Currency in the form of earnings and 411634de report to be used by national banks. Approved. Letter to the Federal reserve agents at all Federal reserve re4ding as follows: "Th repliee Federal Reserve with re Board has given consideration to the received to its telegram of July 14, vi8or egard 1934, Trans 2036, to ?;"2.0 expenses of the members of the industrial adMmittees. 4 -44 Y°u know, section 13b (a) of the Federal Reserve Act, 41°Ilded, reads in part as follows: aP20 " Eleh member of such committee shall be actively engaged in some industrial pursuit within the Federal Reserve district in which the committee is established, and each such member shall serve without compensation but shall 'oe entitled to receive from the Federal Reserve bank of such district his necessary expenses ',idle engaged in the business of the committee, or a per diem allowance in lieu tnereof to be fixed by the Federal Reserve Board.' %bile the iioard is sympathetic to the suggestion that the members of the industrial advisory committees should re. ; r e" l. a compensation for their services, it is clear from the pic).fisi°11- of section 13b referred to above that the law conteraTh,a:-es that the services rendered by the members of the com-L-L Gtee8 5ha-LI be without compensation and that any per diem ti.rdced- by the Federal Reserve Board should be in lieu of necesto Y e:cloenses, and, therefore, should bear some relationship apior 8lich exPenees. Accordingly, the Federal Reserve Board has ad',.°11ed the reimburseraent of members of the industrial inew-Lssory committees as follows: (1) A member engaged on buss for the cormdttee in the city in which his place of iiioull reas is located may be reimbursed for the actual expenses : co tt e lebY him, (2) A member engaged on business for the loc,te, °Iltside the city in which his Place of business is trarts be paid a per diem of c,10.00 a day plus actual or expenses, or, if he so elects, may be reimfor ne actual expenses incurred by him." Approved. Letter to liezer.re -r Curtiss, Federal Reserve Agent at the Federal tLilk of Boston, reading as follows: • 1934, Pt is fer 21; of your letter of itovemb 6 labe , - nclosinc a aelmowledged oo_ y liovember 23 romc.. p of a letter dated Illittrt his Crei ghton, Chairman of the Industrial Advisory a ene of the 'first to Federal Reserve District, with regard .o ComIng i_°111tnient of alternate members of the Industrial Ad-Trsory efrect:,,.. " 'and requesting the Board's views as to the legal tiirl°11ess of such appoinLinents• Ille/abers connection with the suggested appointment o .y , alternate reser,„, , of the Industrial Advisory Committee in another Federal , Ot ' 3- strict the that, in view position the Board taken has at ;fact that section 13b (d) of the Federal Reserve Act, Illcinber, riclec " does not authcrize the appointment of alternate. 1- ,.ec be " Enci also in view of the requirement that the o.r-anit-elss, it j e°111 °sed of not less than three nor more than five mem' , - t3 not believed that alternates for members of the 3721 11_ 0 u mmttee legally may be appointed. ihe Loard is in agreement with the suggestion that it would be unfortunate to have the work of theL;orrinittee_unvorably affected by frequent changes in the personnel of , 11e Committee resulting from resignations because of canton.Plated absence. It is hoped that no such changes will become 11.17,171:Zaand that it will be possible for the members of the ildvisory Committee to work out a procedure which 7611 enable them to arrange their affairs and the work of C°111mittee so that there will be a minimum of interruption ''.411 delay in : the handling- of the applications submitted to the cmmittee for consideration." Approved. Letter to 1..r. Irland kch. Beckman, Deputy Secretary of 4.41zixi, Commonwealth of Pennsylvania, Uarrisburg, Pennsylvania, reading as follows: "This refers to your letter of October 27, 1934, on beSecretary of bankirg of the Commonwealth of te orTsYlvania regarding the right of the Federal Reserve Board e_i, peleant Permission to a national bank located in the State ca, - ? ; ! Ilania to exercise powers where the coon fiduciarycommon 0d1 of such 41 L stook bank is less than the common capital 411; 7 3 4 required of State institutions with fiduciary powers plu the surPlus of such national bank is less than thesurs butill:equired for the organization of such State institutions, Plus%: ' 1 e tho aggregate amount of the capital stock and surPrefe — such national bank, including both its common and capZed stock, is at least equal to the aggregate amount of Stat -- stcck and surplus required for the organization of "institutions with fiduciary powers. izebs ttetion 11( ,k) of Of the Federal Reserve Act, which author-1 bariks -"" Pederal Board to grant permission to national powers, contains among other prothe hi ezercics, 'injassing upon applications for permission to Pederal6 _0 powers enumerated in this subsection, the OSe Board 11121 take into consideration the or 0 1 7 cr _canit ----oT-7 ana surplus ,e applying bank, whether such capital and surplus is oufficient under the b0 Ser of the case, the needs of the community to seer, ctrld any othei—facts and circumstances that tiori a lt proper, and may grant or refuse the applicacc°rdinElY: Provided, That no permit shall be 3722 -8- au. sued to national banking association havina a capita ncrsur..klus less than the ca.oital and surplus revired 1. 21aTtle law of State banks, trust companies, and corporati ns exercisin,- such powers. lou will observe that under this provision, a national having 'a capital and surplus' not less than the capital surplus required of State institutions exercising fiducirY rYNwors serv iseligible to receive permission from the Federal e Board to exercise fiduciary powers provided, of ,°,111‘se, thit it complies with the other requirements of law. Lear d feels that under the provisions of section 11(k) qu i„n1 above, it may properly grant fiduciary powers to a nat--'14'4 bank which has at least the amount of capital stock required for the organization of State institutions with fiduciN"rs, rd surplus together vith an aggregate amount of capital stock equal to the aggregate amount of capital stock and an , Plus required of such State institutions provided that, in .7ase3 the national bank shall have an adequate amount of pc,rt:Als 'in view of all the circumsLances involved in the re , /-1.! ,:e lar ease, and that the condition of the bank in other shall warrant the granting of the fiduciary powers rvlIed for. Penn "It has been noted that under the laws of the State of rente ! ' Y vania a prescribed amount of 'common' capital stock is fal ' 1:ed for the organization of State institutions mith the f elarY Perviers. In -bilis connection, attention is called to 1933 Itlet that section 303 of the Act of Congress of Larch D, term ,;48 Statutes at Large. 1) provides in part that 'the tientlae°rnmon stock" as used in this title means stock of naluider 4.rInkinS associations other than preferred stock issued uced .'"0 Provisions of this title. The term "capital" as Provisions of law relating to the capital of national /nen s_c associations shall mean the amount of unimpaired comIlliimpaci ) , , e kA Plus the amount of preferred stock outstanding and /Itiolia-,-;%O. In view of this provision of law applicable to 44tientli rnks, the Board feels that, in determining whether a fichl • k is eligible to recei L'allve permission to exercise Pederal V Powers under the provisions of section 11(k) of the Prefer;4serve Act, both the common capital stock and the ill cora ed capital stock of the national bank may be included Of I Puting T‘. eaPitnit whether or not the bank has the required amount theTu „: In this connection, it is the opinion of the zerve he provision of section 11(k) of the Federal Ree4Pitale her°tofore quoted has reference to the amount of eleLaz e glaired and d a tocko .es not have reference to any particular ()! ea-°it 1 'efe or the ref erred toboard acted upon the applications of the in your letter—Northwestern National Lank k 37 )1 3 IC.ret -9"in Ph iladelphia, South Philadelphia 1,iatienal Lank of Philadelphia, and the Bethlehem 1,ational Bank--it obtained full oozie.on with regard to the requirements of the laws of of Pennsylvania for the organization of State institutions with fiduciary powers and, in view of the considerations discussed herein, reached the conclusion that it Properly grant those banks permission to exercise_fiduiarY Powers, and no further action is required by the board .L/1 order that such banks may exercise the fiduciary powers granted to them. The Lord also knows of no reason why it culd not hereafter grant trust powers to other national °Inks l located in the State of Pennsylvania under similar cir:ustarlees provided, of course, that in any particular case Qf the other circumstances involved warrant the granting th?.,fiduciary powers applied for. Tihe Board desires to cooperate to the fullest extent Pcssible With the state authorities in connection with the %,11tille; to national banks permission to exercise fiduciary and has given the circumstances involved in the api°ns for fiduciary powers of national barks located in bei. utete of P ennsylvania most careful consideration. It is ca.o eved that the views here set forth with respect to the pe-l al and surpl„ls required of national banks applying for the si°n to exercise trust Powers are in accordance with c,Ild requ irements of section 11(k) of the Federal Reserve Act, of t1111s° are in accord with the substance of the requirements orf7(111 -1"4178 of the tate of fennsylvania applicable to the Z„zration of State institutions with trust powers. prior '11 co nnectioi, with your inquiry it nay be noted that the a,, t ,?,the time when the Board had occasion to consider Of cations of the national banks located in the State ce.se nsYlvania referred to above, it considered, in the stanc ' el a national bank located in another State, circumtiorialsbsimilar to those involved in the cases of the naProper,arks located in Pennsylvania and decided that it might Zrant trust powers to a national Lank in such circurnstnces a. eento t. liave stated that your office has taken no action in c lon tn the w°Ster exercise of fiduciary powers by the Lort L atlonea . " ,ional Bank in Philadelphia, the South Philadelphia Bkik, alad-L,Qai, of Philadelphia, and the Bethlehem National Zic1.1r off, it is not entirely clear to the Board what action easec.COfels would be necessary with reference to these "Pre,s,sed°11, 1e-ver, you may be interested in the following views 41IY 14, 10,,Y k) the Federal Reserve Board in a letter of Februer than'°°, a ddressed to a national bank located in a State rala sioll the State of Pennsylvania which had received per exer • • - else fiduciary powers under the provis_ons tf n thnt 3724 12/6/34 -10of section 11(k) of the Federal Reserve Act, with reference tO *ether it was required to obtain the permission of State authorities before exercising such powers: "Your letter of February 4th addressed to the Comptroller of the Currency with reference to the right of the Bank of , to act as administrator has been referred to the Federal Reserve Board for reply. In 1927, the Federal Reserve Board granted permission to the Bank to act as administrator and in certain other fiduciary capacities. It appears that this national bank has now entered a suit as administrator for a deceased coal miner and that the right of the Bank to aPpear as administrator in this suit has been attacked on the ground that this national bank has never been granted a permit by the State of to act as administrator. You inquire whether it is necessary for the Bank to obtain permission from the State of to act in this capacity. "The right of a national bank to exercise trust Powers is derived from the laws of the United States and et from, „ the laws of any particular State. In Section ,-Lkk) of the Federal Reserve Act, Congress has set out at -.Ijngth the circumstances and conditions under which a na,1°nal bank may exercise trust powers. Congress, however, ,8 not prescribed as one of such conditions that a na2°11a1 bank must obtain the permission of the State in ch it is located before it exercises fiduciary pomers. Under der these circumstances I am clearly of the opinion that is not ::er?ise necessary for a national bank which desires to 31•9t powers in accordance with the provisions cf ctlon -LAlci of the Federal Reserve Act to obtain the Zmission of the State in which it is located before it toef,!ises these powers. The basic reasons which lead up ''"is conclusion together with citations of authorities 'Y ben briefly summarized for your information as follows: Court f it is well settled by the decisions of the Supreme a of the United States that an act of Congress within ,,r!-Ield covered by its canstitutional power fully approctes that field and is the supreme law of the land v. Ear land, 4 Vat. 316; Northern Pacific ELLILZ v. North Dakota, 250 U.S. 135; Smith v. 124 U.S. 465; and Mondu v. N.Y. N.H. and H.R.C. ceillnis!' 1.) It is also well settled that Congress has natioe'e constitutional power to establish and regulate 17aZ7 * banks (McCulloch v. Maryland, supra; Osborne v. 4heat. 738; Davis v. Elmira Savings Bank, 161 U.S. 188 /3 2:a Bank V. Dearing, 91 U.S. 29; Easton v. Iowa, 'S. 22O;11-27 Van Reed v. Peoples National bank, 198 /l Z 4 U Rzr1:111.19zia 3725 12/6/34 -11ut u , .b. 554). he Supreme Court of tle United States, after _eare'ullv considerinr its decisions above ci-1,ed has , .urtner hold that the .ct of ,onuess rranting trust powers to ITEilloT17 -banks Tsection 11(1) of the Federal Reserve .14c f-I-S-TITJTional and cannot be nullified or conte-aahoritir TTI-rst Lational Lank v. 2eilol.s, 244 TZ". , 116 and turns La -Clonal Bank v. Duncan, 265 U.S. "'If it is assumed that it is necessary for a national bank to obtain the permission of the State in which it is located before it exercises trust powers pursuant to the .°17isiorls of Section 11(k) of the lederal Reserve Act, State could control or nullify the right of national /3TIks to exercise such powers by refusing to grant itspersion or by 'r-anting its permission upon such conditions as it samfit. The Supreme Court of the United States, h°wever, in the to cases last above cited has held that Et State has no authority to do this. I wish to call your special attention to the case liurns ilational Lank v. Duncan, which is cited above. ' 40 Burns National Bank of St. Joseph, Missouri, which had received permission from the Board to exercise trust powers, appointed executor by a citizen of Missouri and the Llle death after of the testator, the bank applied to the proper 1),,r?hate court for letters testamentary, but was denied ap-Iltment on the rround that by the laws of Missouri na11,°1-1111 banks were not authorized to act as executors. ruling of the lower court was sustained by the rcIlle of Missouri, but upon appeal to the Supreme lzrt of Court th e United States, the State courts were reversed. 11;,...SUprene Court of the United States held that the Burns ,,'10nal Bank was entitled to act as executor, regardless iether it mas so authorized to act by the State of . In so holding the Supreme Court said: * whatever may be the State law, national banks a j-Llig the permit of the Federal Reserve Board may act , eavexecutors if li trust companies competing with then that power." and Hitt * * the State can not lay hold of its general contheir trol °f administration to deprive national banks of power to compete that Congress is authorized to slIstain.0 11,1n . ia ew of this decision of the Supreme Court, it power electr that a national bank desiring to exorcise ths in eccordance with the provisions of Section 11(k) Of the Federal Reserve it need not obtain the permission, truspowe8.Sa in which it is located before exorcising such 1 T c2 iLr 1) 3726 -12n'lhe right of national bar_ks to exercise trust powers has also been considered by the Supreme Court of the 'united States and courts of the various Ltales in a number of Other cases. In the decisions of these cases, the right Of a national bank to exercise trust powers has been discussed by the courts at considerable length and I believe thLt the following cases would be of particular interest and assistance to you: 1'1rst Nat. Bank v. Fellows, 244 U.S. 416; In Stanchfield's Estate (his.) 178 N.W. 310; In Re I,:ollineaux (1-..17.)- 179 1,.Y.S. 9; liamilton et al. v. State (Conn.) 110 .41. 54; TriGiSenter v. Aquidneck 1:at. Lank (R.I.) 125 Atl. 358; -1-177j.717-ner's -Estato (Pa.) 120 AU. 701. 1 ne board does not know of any reason why it should /11E14 a nY chanre in its views as heretofore expressed and quoted above. Approved. Letter to Lr. Stevens, Federal heserve Agent at the Federal serve Bank of Chicago, reading as follows: 25 4 "This will acknowledre receipt of your letter of October T:c4. (5 nEzdItlyiz call to the Board's attention, for their ad1. A , , the question raised in a letter from bchlick, a dealer in securities, of Lilwaukee, Wisconsin. Of 413Pe Ers from his letter that Lr. Schlick is not a member l'ational securities if Lr• Schlick is exchange. a broker or dealer who transacts a a tati-e "in securities through the medium of any member of Cha e securities exchange, section 7 (c) of the Securities sion : li Act of 1934 makes his business subject to the provi1;2-cf R egulation T of the Federal Reserve Board. If he tioll°3 ' . sucha broker or dealer (and is not a member of a na7 him.a Lls,ecurities exchan]e), this regulation does not affect 11111-t 13 cr or not Lr.' Schlick is such a broker or dealer ° determined on the basis of a fuller knowledge of the : the case. Schlick is subject to Regulation T, there is the sal 1/1 the regulation which requires that his plan for diE corit? of exempted securities on a partial payment plan be cltriti_Illued. With respect to registered, non-exempted sethere is nothing which requires that such plan be Is lar, 2 1 111ed provided that in every case the initial payment ° thari en°un, or enough additional collateral is deposited, Schlick d11 not be extending credit in excess of "41 3727 12/6/34 -13' ,Ile amount that on mostpermitted under the regulation. It may be noted high-grade registered bonds a customer would be required at the present time to make an initial payment of 45 per cent. In the case of a municipal bond or other exempted security, the regulation does not set any minimum Which the broker or dealer must require as an initial payment. For the information of the Board, and for purposes of : tudY, we should be glad to have you obtain from lir. Schlick, fr from any others carrying on the same type of business, any bur,ther details that would throw light upon the distinctions ween this type of business and the business of dealing on 'uargin as this term is commonly understood." Approved. There were then presented the following applications for eluillEes in stock of a Federal reserve bank: 4 lication for ORIGINAL Stock: Shares he First • National BaJ in Staunton, Staunton, Illinois 45 45 4 ication for trict SIMREZER of Stock: -, or No. aldron, 41dron, Arkansas 12 12 Approved. Thereupon the meeting adjourned. Governor.
@FedFRASER