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51 A meeting of the Federal Reserve Board was held in Washington on 4144Y, December 9, 1932, at 12:00 o'clock noon. PRESENT: Governor Meyer Mr. Hamlin Mr. Miller Mr. Yams Mr. Magee Mr. Mr. Mr. Mr. Mr. Mr. Mr. Morrill, Secretary McClelland, Assistant Secretary Harrison, Assistant to the Governor Wyatt, General Counsel Paulger, Chief, Division of Examinations Wingfield, Assistant Connqe1 Chase, Assistant Counsel. The Board considered and acted upon the following matters: Letter dated December 8, 1932, fram the Secretary of the Federal Re114/11c of New York, and telegrams dated December 8, 1932, from the —44 of the 2ederal Reserve Bank of Kansas City, and December 9, 1932, 4411 thA - Secretary of the Federal Reserve Bank of Cleveland, all advising tkit A4, '"rneetings of the boards of directors on the dates stated no changes 'set me4e in the banks' existing schedules of rates of discount and purchase. Without objection, noted with approval. N-egraphic reply, approved by five members of the Board on December e h "" tele gram dated December 6, 1932, from the Governor of the. Federal °Bank of Atlanta, requesting authority for an extension for sixty 'ill the amount of ,3200,000 now outstanding, of the advance made to the " 8 1Tational Bank, Mobile, Alabama, in accordance with the provisions : 414 tle4"tl°4 10(b) of the Federal Reserve Act and under authority granted by 11°4t(I on September 9, 1932; Governor Black stating that the same : 4 44'44 eZist for the extension as were given when the advance was originally 4' reply stated that the Board interposes no objection to the con- 513 -2Of the advance without demand for payment, in the amount now outatEtridinc,),, at a rate of 5 1/2' per annum, and payable on demand, and that the 'irty event the advance is not repaid nor demand for parInnt made within days from December 8, 1932, the matter should again he brought to the (31 ' cl's attention with a statement of the circumstances which, in the opinion the Federal Reserve Bank of Atlanta, justify the bank in further conrk the advance without demand for payrent. Unanimously approved. Telegraphic reply, approved by four members of the Board on December 7, 19, `D2) to a telegram of that date from Deputy Governor Coleman of the ?eati ' l ea Reserve Dank of Dallas stating that the Federal Intermediate Credit 0 r IloUston has offered ::or discount approximately .,a50,000 additional elleib3-e Paper, which would brin,_ '`Lellal the total amount discounted with the Reserve Bank of Dallas up to approximately „;24-0,000, and requesting t4elloard'a approval of the discount of the additional paper because of the that the Federal reserve bank's reserves on December 6, 1932, amounted 1°61%9',; of its aggregate liabilities for deposits and Federal reserve notes The reply stated that the Board authorizes the discount of ttilaclaitional paper offered with the understanding that the entire line )1111 be retired not later than December 15, 1932. Approved. Letter to the Acting Comptroller of the Currency, approved by four Of the Board on December 6, 1932, stating that, in accordance with hit 1,e0 °Ilmendation, the Board has approved the application of the First q011a1 tta -44- Bank, jacksboro, Texas, for permission to reduce its capital stock A-00,0oo t ..;50,000, subject to certain conditions set forth in the 1219/32 - letter. Approved. Letter to the Acting Comptroller of the Currency advising that, in v4atance with his recomendation, the 3rd has approved the application ot tIle 3irst National Hoboken, Irew Tersey, for 1)0-mission to reduce 1t . caPital stock from .:;625,000 to;100,000, subject to certain conditions et rorth in the letter. Approved. Letter to the governors of all Federal reserve banks transmitting e the letters exchanged with the Governor of the Federal Reserve 41Lk or I:in lie ap oils under dates of October 13 and 25, 1932, and of the telegr_ guts exchanged with the Governor of the Federal Reserve Bank of San Under dates of November 23 and 28, 1932, with regard to the dis- °°11,nt bY eederal reserve bank of eligible paper offered by regional agri- '41.t.11._ al credit corporations. Approved. Reference was then made to the special topic for discussion at this keetth, ' 61 nanely, the policy of the Board in granting permits under the 4.°11z-1 of Section 3 of the Jlayton Act. There was presented a. memorandum bY ir. 'jyatt, General Counsel, under date of December 7, 1952, on t/ztti Ject of Questions of policy arising in the administration of Section lie Clayton Act, copies of Which had been furnished to the members of and Hr. Wyatt briefly outlined the history of the Clayton Act and '4bze(, amendments thereto with regard to interlocking bank directorates. 141,0 also presented a written statement on the subject. 12/v32 -4A general discussion followed, and action on the entire question was deferred pending a feurther consideration by the members of the Board of the points raised during the discussion and the suggestions contained in Counsel's memorandum. Reports of Standing Coramittee dated December 7, 8 and 9, 1932, l'"°111131eX1ding approval of the following changes in stock at Federal reserve bezka: 1, ivt -4J-cation for OP.IGIIIAL Stock: aa-‘,zict lio. -'11111-t-Y National Bank, iitt, Illinois. Shares 17 17 2 2 3 Total 3 5 kat --ulons for ADDITIONAL Stock. th tircilleY National Bank, Dry Run, Pennsylvania. Illerease in surplus) tzict ‘eQ (Increasec Bank a2)(1 Trust Company, noberly, in surplus) }leations for SURIUTDEll of Stock: criet llo. .eqa 5. Irat1ona.1 Bank, Port Deposit, Faryland. k bee reao e in surplus) 36 36 150 150 tri et Lo. Qtionj Bank & Trust uorapany, Kenosha, olvent ?4,41et roe 8. tirlIEttional Bank, Appleton City, Eissouri. L•Sue. by Citizens Bank of Appleton City, 41'440111nel/111er) ' tr 04 Bank & Trust Company, St. Louis, 11 :issouri. 4''itrtki-/etczlease in surplus) , (1, na1 Ban..., Lexington, Tennessee. tiill'ueerease in surplus) ( 4 0 National Bank, Hillsboro, Illinois. ecrease in surplus) 60 45 17"i° 1:0. 11. (:;43 national Bank, Gonzales, Texas. ''.11a olvent) 15 129 132 132 I 12/9/32 -5- li cations for STEMMER of Stock: (Contfd) ..,—bia.trict No. 12 tzne ,rcial National Bank, Bellflower, Calif. k V.L.Abs. by First National Bank. of .Bellflower) Lational Bank, Vacaville, Calif. (V.L.Abs. 'bY Bank of Anerica National Trust and Savings kssociation, San Francisco, California.) Shares 21 45 Total Approved* Thereupon the meeting adjourned. —oveq: 66 513
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