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501 A neetin: of the Federal Reserve Board was held in ''ashington on Dece:lber 3, 1932, at 11:10 a. in. =ITT: Governor I.:,eyer Mr. Hamlin Mr. Miller Mr. Tames Mr. Liagee Mr. Morrill, .Secretary Mr. McClelland, Assistant Secretary Mr. Harrison, Assistant to the Governor. The Board considered and acted upon the following matters: Telegrams dated December 7, 1932, from the Chairmen of the Federal -ve Banks of Philadelphia and Dallas, advising that at neetings of the booa 8 directors on that date no changes were made in the banks' existing Nle lea of rates of discount and purchase. Athout objection, noted with approval. Reply, approved by five members of the Board on December 7, to a 4t'te, dated October 10, 1932, from the Federal Reserve Agent at Philadelphia 41)°1'ti that the United States National Bank of :Johnstown, Pennsylvania, 114a,, qtlested favorable action on its application for trust powers, notwithti the fact that it had abandoned the plan of absorbing the three Ntei ns titutions referred to in the Board's letter of September 21, 1932, krIci tha t tile agent had advised the national bank that because of its unsatr`keto rY condition he could not recommend approval of the application and 1144 ested that it be withdrawn. '111(ala The reply stated that the Board is tO the attention of the Acting Comptroller of the Currency the 1INItt et tenent that in view of the specific authorization of corporate 1'114'1 "orranized under the laws of Pennsylvania to invest trust funds ek* t1ticates of Participation in real estate mortgage pools many national ' 4 t4 - eansylvania which have authority to exercise fiduciary powers have 12/3/32. tor -2- some tine invested trust funds in this manner, and that the agent believes -cu.. bank examiners in the district are not certain as to the application tollational banks located in Pennsylvania of the Board's 1929 rulins- on this thie04. The rel)ly referred to the agent's suggestion that consideration be by the Board to the amendment of Section a of Regulation 7 which ProV.ide that funds held in trust shall be invested in any securities in which %Tr,— 4. "e or individual fiduciaries in the State in Which the bank is located kty -wfully invest, and stated that such an amendment would not seem to be NIqes sazY in view of the fact that Section VII of the Regulation provides tht h t-e securities and investments held in each trust shall be kept separate kla J "-Lstinct from the securities owned by the bank and separate and distinct ' 416 another. The re-ply also reviewed the reasons for the Board's ruling or Approved, together with a letter to the Acting Comptroller of the Ourrency, also approved by five members of the Board on December 7, 1932, calling his attention to the agent's statement referred to above. Letter to the Federal Reserve Agent at Chicago, approved by five ketqlera Of the Board on December 7, replying to Assistant Federal Reserve 41%lt letter of Eovember 30, 1932, reporting that the Farmers First 4tiotaa Bank, Rake Iowa, has been continuously deficient in its recuired lerltee for six and one-half months from Lay 15, 1932. The reply stated Ii view of the information submitted, and in accordance with the recoiltNtItiot of the agent's office, the Board will take no action in the natter kt Dresent tire other than to forward a copy of ir. young's letter to flO r3ortiotroller of the Currency for the information of his office. 131J also requested that the agent advise the Board, within a reasonable 503 12/8/32 as to whether the bank has restored and is maintaining its required re erires. Approved. Reply to a letter dated November 29, 1932, from the Federal Reserve 4eeiat at 1:113 St. Louis, reporting that the Peoples "National Bank, Seymour, . v41 ' 1, Was continuously deficient in its reauired reserves during the Od. Of six and one-half months ended October 31, 1932. The reply stated that, 04 the assumption that the reserve deficiencies of the bank have been ke to no wilful disregard of the requirements of the law but to the unfaverke co nditions which have prevailed in the community, the Federal Reserve 11°E1(1, in accordance with the agent's recommendation, will take no action tlic Latter at this time other than to forward a copy of his letter to the 4eti k Comptroller of the Currency for the information of his office. The lett el 'also requested that the agent advise the Board, within a reasonable tike '3 to whether the bank has restored and is maintaining its required re- Approved. Letter to the First lational Bank in 3artlesville, Oklahoma, stating t44t 14 addition to the authority previously granted to the bank to act as 1Natee ' 4tEtte a, executor, administrator, registrar of stocks and bonds, guardian of assinee, receiver and committee of estates of lunatics, the Federal Board has approved the bank's application for permission to act, when 4 contravention of State or local law, in any other fiduciary capacity tk leb. State banks, trust companies or other corporations which come into 4ttite 0 -on with national banks are permitted to act under the laws of the r c) Oklahoma, the exercise of such rights being subject to the provisions te ecleral. Reserve Act and the Reallations of the Federal Reserve Board. 504 Approved. Letter to the .Acting Comptroller of the Currency inclosing a copy of the, J-etter to the first National Bank in Bartlesville, above referred to, and 4t4/1-11g that the Board feels there should be a prompt correction of the 4Zitipi --suls of the trust department contained in the report of examination of the ta tional bank as of September 20, 1932, with regard to investnent of funds or vex. lous trusts in securities of certain affiliated corporations and Opo in which officers or directors of the bank are interested and thei, '-- failure 14111111s/it. to have periodic audits or examinations made of the trust de- The letter also stated that it is assumed that the Comptroller's oirie e Will follow up these matters vigorously and take such steps as may be 1-e to obtain the further improvements in the comiercial department of which the report of examination indicates are necessary. Approved. Telegraphic reply, approved by five merbers of the Board on December 71 to , vtelegram dated December 5, 1952, from the federal Reserve Agent at 441 ei3oo, stating that if agreeable to the Board the bank, at the next Of the board of directors, will amend the by-laws of all branches of the bkil: -to eliminate the re(luirement that at least one director appointed by * Pederal Reserve Board and one appointed by the federal reserve bank 411411 reside outside of the branch city. The reply advised that as stated .1301rd'- telegram to the federal reserve agent of December 14, 1931, t4e er of the provision of the Board's regulations with regard to this tt oontemplated only temporary amendments of branch by-laws to meet (itte C situations; that according to the Board's records the Los Angeles t°Zate meets the reouiroments of the regulations and will do so during 505 1V8/32 -5- 1933; that the Portland and Spokane directorates meet it at the present time 6'41 Wil1 continue to do so unless directors appointed for terms ending ileeniber 31, 193,1, reside in the branch city; and that unless the board of (I1l'ect01'a of the bank has in mind changes at Portland and Spokane the by-laws 't the Seattle and Salt Lake City branches are the only ones which should be INecl temporarily to make exceptions during 1933 in the case of the bank's 41/(5111tees at 3uattle and the Board's appointees at Salt Lake City. Approved. Reply to a letter dated December 2, 1932, from Deputy Governor 1 c)f the Federal Reserve Bank of New York, stating that, following certain ellst°dY and eainarking transactions carried out by the New York bank '1'14t1.:le to time for the Central Bank of Ecuador, the suggestion was made t4at -113141 application be made by that institution for the opening of an ,1°1111t with the New York bank; that such an application was received under qtite ot t °r October 27, 1932; and that at the meeting of the board of directors -4 Nell York bank on December 2, 1932, it was voted, subject to the DD1,0\r__ ' of the Federal Reserve Board, to authorize the officers to open and 4111t4ili account on the books of the New York bank in the nam of the tIN5 CeIltral del Ecuador, Milt°, Ecuador, and to carry out operations in 1.ze t for that bank along the same general lines and subject to the le11218 c ilew and conditions as for other central banks having accounts with zoisit bank. I The reply stated that the Board ap)roves the action bY the directors, it being noted that the relations to be established ply mq 'Jcntral Bank of Ecuador are restricted to a one-way account. The requested that the Board be furnished with a copy of the agree-ed into with the Central Bank of Ecuador, or, if no formal agree- 506 -6be executed, with copies of the correspondence setting forth the terns ' 814 c°11ditions under which the account will be maintained. Approved. 1,:emorandum submitted by Mx. Paulger, Chief of the Division of l':xamttle'ti°48. under date of November 29 1932, in accordance with the rerluest 14cle by the Board on November 2, 1932; the memorandum setting forth the 14t().1'.:1 of the Harding Memorial Association custody account held by the :kg ileserve lank of Hew York, and stating that, for the reasons outin the memorandum, negotiations have been begun by the bank with the l'z'e31-11-.3r Department to have the account removed, and that the Board will be N 'eecl further in the matter. Noted. Consideration was then given to the reports submitted by the various -Lct committees of the Board relative to the appointment of class C gitee tore-ofederal reserve banks, the designation of Federal reserve tiv? ' e/Ita and chairmen, the appointment of deputy chairmen, and the appointment °I' A. `kllwectors of branches of Federal reserve banks; and the following actions *e taken: . litze bcierle H. Curtiss was reappointed class C director of the Federal Re' ' - 1111: of Boston for a term of three years beginning January 1, 1933, hzegcicsi.;nated chairman of the board of directors of the bank and Federal e a:]ent for the year 1933. tj 4Q1en Hollis was reappointed deputy chairman of the board of directors e Pederal Reserve Bank of Boston for the year 1933. : 17 1 D. Young was reappointed a class C director of the Federal Reserve Tew York for a term of three years beginning January 1, 1933, and as c hairman of the board of directors of the bank for the year 1933. 3'• 1-1• Case was redesignated chairman of the board of directors of the M3)leserve Bank of New York and Federal reserve agent for the year 1933; '..er voting "no." 507 1v8/32 -7- Id• Cooley was reappointed a director of the Buffalo branch of the 1 s L.1 Reserve :3ank of New York for a tern of three years beginning January $ .033• kN R. ael , v2 -e hard T. Austin was reappointed a class C director of the Federal Re1933 ' Bank of Philadelphia for a berm of three years beginning January 1, Axle 'and redesignated chairman of the board of directors of the bank and ral reserve agent for the year 1933. 4. Al Ottc : )111a* B. Johnson was reappointed deputy chairman of the board of directors e Federal Reserve Bank of Philadelphia for the year 1933. 4r. otth illiarr was reappointed deputy chairman of the board of directors ' e Aderal Reserve Bank of Cleveland for the year 1933. , ohn. ()make was reappointed a director of the Cincinnati branch of the 4 1nel :Ieserve Dank of Cleveland for a term of three ;ears beginning January v33 • 1#4* A e • T •ecles_ -4* Humphrey was reappointed a director of the Pittsburgh branch of the ' 4' 81 Reserve Bank of Cleveland for a term of three years beginning January 1 4 11141k Hoxton was reappointed a class C director of the Federal Reserve ej Richmond for a term of three years beginning January 1, 1933, and 41411ated chairman of the board of directors of the bank and Federal re.1tent for the year 1933. q11, 4ecieric A. Delano was reappointed deputy chairman of the board of °rs of the J'ederal Reserve Bark of iidhmond for the year 1053. Cohill was reappointed a director of the Baltimore branch of the 3.1-leserve Bank of Richmond for a tern of three years beginning January 1 -es A. Cannon was reappointed a director of the Charlotte branch of Zo4 eclez 4A, al deserve Bank of itichnond for a term of three years beginning -`1r 1$ 1933. 14. , ilewton was reappointed a class C director of the Federal Reserve ta4.4tlanta for a term of three years beginning January 1, 1933, and reue() Chairman of the board of directors of the bank and Federal reserve the year 1933. N . „ the, 1,etti was reappointed deputy chairman of the board of directors -ederal ileserve Bank of Atlanta for the year 1933. 508 12/8/32 1 -8_ Oscar Wells was reappointed a director of the Birmingham branch of the etlerial Reserve Bank of Atlanta for a term of three years beginning January 4*, 1933. It% ,,,L. th zulten Saussy was reappointed a director of the Jacksonville branch of i'e Pederal Reserve Bank of Atlanta for a term of three years beginning Illigaz'y 1, 1933. 1 L. Davis was reappointed a d irector of the rashville branch of the a1 Reserve Bank of Atlanta for a term of three years bej.nning January 4. T ?edel% ' 4* C. Simon was reappointed a director of the New Orleans branch of the. 1, - 7,69,1 Reserve Bank of Atlanta for a term of three years beginning January 1v . -L33 4% 13fkk araes Simpson was reappointed a class C director of the Federal Reserve (3f Uhica[;o for a tern of three years beginning January 1, 1933, and "aal man of the board of directors of the bank for the year 1933. 44 i? of ' t: 1 11_ 6/10 L. Stevens was redesignated chairnan of the board of directors 14„,„ Federal Reserve Bank of Chicago and Federal reserve agent for the elx 10 I's Hull was reappointed a director of the Detroit branch of the Fed1933 ''"erve Bank of Chicago for a term of three years beginning January 1, t,}1.°1111 Stanley, Evansville, Indiana, was appointed a class C director 444:2ederal Reserve Bank of St. Louis for a terill of three years beginning 1, 1933. 3*°1111 So Wood was redesignated chairman of the board of directors of the ?eflez Reserve Bank of St. Louis and Federal reserve agent for the year 4 1. DA418 Dillard was appointed deputy chairman of the board of directors of e(leral Reserve Bank of St. Louis for the year 1933. a t11:1 -%Yeaen. ', Jampb ell was reappointed a director of the Little Rock branch of Reserve Bank of St. Louis for a term of three years beginning 1, 1933. x111 ,ral Cole was reappointed a director of the Louisville branch of the D 'LeSerVe Bank of St. Louis for a term of three years beginning -V 11 1933. 509 ii 12/8/32 -g- vn, Orgill was reappointed a director of the 1,1mphis branch of the .1p,1 '411am es1 Reserve Bank of St. Louis for a term of three years beginning 1933. 3. °11.11 R. Mitchell was reappointed a class C director of the Federal 2e1,3,e Bank of T:inneapolis for a term of three years beginning January 1, and redesignated chairman of the board of directors of the bank and ral reserve agent for the year 1933. 4, orthoraer P. Clark was reappointed deputy chairman of the board of directors e 2ederal Reserve Bank of Linneapolis for the year 1935. w P. Sullivan, Fort Benton, Dlatana, was appointed a director of the year-a, branch of the Federal Reserve Bank of Finneapolis for a tem of two a beginning January 1, 1935. L. l'cClure was reappointed a class C director of the Federal Reserve °f Kansas City for a term of three years beginning January 1, 1935, kle!!aesignated chairman of the board of directors of the bank and Federal e agent for the year 1933. 11, Langworthy was reappointed deputy chairman of the board of 6Ors of the Federal Reserve Bank of Kansas City for the year 1933. Davis was reappointed a director of the Denver branch of the Fed3serve Banku of Kansas City for a term of three years beginning January 19 . ti EUler was reappointed a director of the Oklahoma City branch of thle ktD,'"I`Leral Reserve Bank of Kansas City for a term of three years beginning Ary 1 1933. 14, h'W gkler ;" 4 Hardy was reappointed a director of the Omaha branch of the Federal Bank of Kansas City for a tern of three years beginning January 1, 11a L4 or • T1 B rown was reappointed a class C director of the Federal Reserve Dallas for a term of three years beginning January 1, 1933. 14eC r; 0(1* Walsh was redesignated chairnan of the board of directors of the 4 Reserve Bank of Dallas and Federal reserve agent for the year 1933. Or% , 1.) —erkins was reappointed deputy chairman of the board of directors 41 ederal Reserve Bank of Dallas for the year 1933. Z ' Itkk), Coles was reappointed a director of the :1 Paso branch of the Fed, aerve Bank of Dallas for a term of three years beginning January 1, 12/8/32 -10- Cooke Vinson was reappointed a director of the :Houston branch of the 1 ?I'al Reserve Bank of Dallas for a term of three years beginning Sanuary ) 11,1chard King, Corpus Christi, Te;cas, was appointed a director of the titonio bra.nch of the Federal Reserve Bank of Dallas far a tem of ee Years beginning January 1, 1935. ' 48.c B. Newton was reappointed a class C director of the Federal Reserve San Francisco for a term of three years beginning January 1, 1933, toze ' e"kesimiated chairman of the board of directors of the bank and Federal Ilre agent for the year 1933. 'Walt _ or on F. I. 1.00re was reappointed deputy chairman of the board of directors Federal Reserve Bank of San Francisco for the year 1935. • B. Alexander was reappointed a director of the Los Angeles branch of 4,41,,_ ederal Reserve Bank of San Francisco for a tern of two years beginning --`4.-Y 1) 1933. G.. the :e2* ririGht was reappointed a director of the Salt Lake City branch of ht411,24ella-1- Reserve Bank of San Francisco for a term of two years beginning • 1) 1933. 1.1 clez,„, e11-1'Y A. Rhodes was reappointed a director of the Seattle branch of the cu. Reserve Bank of San ) 1rancisco for a term of two years beginning e'l'Y 1) 1933. ?e1:101 • ,"°r1:cGregor was reappointed a director of the Spokane branch of the Ileserve Bank of San Francisco for a terra of two years beginnins . 11 1933. • 'tiolt • tarilY A. Easton, Coeur d'Alene, Idaho, was appointed a director of the Dtteci e bl'aneh of the Federal Reserve. Bank of San Francisco for the unex1:h3rtion of the term ending Decenber 31, 1933. kt 4,1 '''Wlit:trd. :tNetai " 1u s ktle C. Pease was reappointed a director of the rortland branch of the I esorve Bk an of San Francisco for a tern of two years beginning 1) 1933. r'nat' len of Fr. 1Tathan o'trauss as a director of the T'ortland branch ' toederal rteserve Bank. of an ,francisco, submitted on rovember 27, take effect at the pleasure of the Board, was accepted effective ateiy. Apt liarry 1.-- Haller Portland) Oregon, was then appointed a director of the ,4(1., veci °ranch of the Federal Reserve Jank of San Ji'rancisco for the unex' °Iition of the term ending December 31, 1933. 12 /32 -11RePorts of Standing Committee dated December 5, 1932, recommnding 4131)1 ' °11111 of the following changes in stock at rederal reserve banks: 41)1)15. 15, 4 ,ons for SURRIaillidi of Stock: 6. 8t , national Bank, Lavonia, Ga. l Dearease in capital and surplus) Shares 30 tItiletzl.ct 1:o. 7. ' lre Haute First National Bank, Terre Haute, Ind. (Cons. of First-NcIfeen National Bank e.4 Trust °°111Pany and Terre Haute National Bank & Trust Cor)k an/ , of kn4, Terre Haute, Indiana.) ilational Bank, Hindsboro, ifl. (V.L.Abs. by u4.44and National Bank, Oakland, Illinois.) 4 National Bank, Nortirrood, laza. (Insolvent) i letzict rio. 8. 30 660 26 43 729 430 430 24 24 21 Total 21 1,284 t \ Bank, jacksonville, -1-n801-Vent) 1ilatric ) 9. Citizens Bank, Lake Bent on, I killasolvent) sota. Tio. 12. -4t Driggs, Idaho. (Ins olvent) Approved. Thereupon the meeting adjourned. kptove
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