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324 A meeting of the Board of Governors of the Federal Reserve Systera was held in Washington on Friday, February 19, 1937, at 11:30 a. m. PRESENT: Mr. Szymczak, Chairman pro tern Mr. Davis Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Co nsideration was given to each of the matters hereinafter referred + . 0 and the action stated with respect thereto was taken by the tOarcl: ot Telegrams to Messrs. Kimball, Strater and Young, Secretaries the Federal Reserve Banks of New York, Cleveland and Chicago, respectivelY, stating that the Board approves the establishment without change bY the New, York bank on February 18, end by the Cleveland and Chicago bEllaks today, of the rates of discount and purchase in their existing schedules, Approved unanimously. T elegram to Mr. Clark, Vice President of the Federal Reserve lkilk of Atienta, referring to the application of the "Watkins Banking C(41113eilir Faunsdale, Alabama, for permission to withdraw immediately rl'oillte mbership in the Federal Reserve System, and stating that the toard waives the usual requirement of six months notice of intention to withdraw, and that, accordingly, upon surrender of the Federal re4rve bank stock issued to the Watkins Banking Company, the Federal 1Zeearve Bank of Atlanta is authorized to cancel such stock and make ap13roDriate refund thereon. The telegram also stated that it was assumed 325 2/19/37 -21fl accordance with the bank's desire, the termination of its membershiP in the System would be deferred until it could simultaneous ly be accepted by the Federal Deposit Insurance Corporation as a nonmember insuz'ed bank. Approved unanimously, together with a letter to Mr. Leo T. Crowley, Chairman of the Federal Deposit Insurance Corporation, reading as follows: "The Board has today approved the application of the Watkins Bankinp: Company', Faunsdale, Alabama, for permission to Withdraw from membership in the System and valved the usual Six months' notice of intention to withdraw. It is understood, t?wever, that the bank desires to continue, without interruption, its status as an insure bank, d and that it desires the ris111"8nce on deposits as a nonmember to become effective simulteneoUsly with its termination of membership in the System. "It is assumed, therefore, that you may desire to make an e. 4amination of the banP and, in accordance with the provisions of subsection (k) (2) of section 12B of the Federal Reservea Act, the Board hereby grants written consent for ex2flers for the Federa Deposi l t Insurance Corporation to exl'olne the Watkins Banking Company, Faunsdale, Alabama, in con; 1e .etion With its application for continuation of deposit inI1ceas a nonmember bank." Or Teleerar to Mr. Clark, Vice President of the Federal Reserve Bank Atle, 4 -ua, reading as follows: "Retel February 13, re 'Bank of Dawson', Dawson Georgi , a. and similar cases Board waives provisions of Regulation clai lt unless member ship be terminated within two months from to-e.°f waiver by the Board of six months ' notice of intention te,nthdraw, bank will be presumed to have abandoned its inos-ulon of withdr awing. When bank has made application to F. thei l C. for continuation of insurance as a nonmember bank, t„time Within which withdrawal may be accomp lished is s exfrom date of Board's waiver of such st;Tonthsf'onotice ur ." Approved unanimously, together with a letter to the Presidents at all Federal 326 2/19/37 reserve banks, reading as follows: "The Board has recently considered the case of a bank Which desired to withdraw from membership but also wished to continue without interruption its status as an insured bank, and to that end had made application to the Federal Deposit flsUrance Corporation for acceptance as an insured nonmember bank- The bank had requested waiver of the usual six months' n°tice of intention to withdraw, which was granted. It subsepently appeared questionable, however, whether arrangements for acceptance as an insured nonmember bank could be completed Within two months from the date of the waiver of the six months' notice of intention to withdraw. Accordingly, the Board advised the Federal Reserve Bank that, notwithstanding the provisions of section 10(c) of Regulation E, the time within zilch the particular bank in question, and any other bank „hich has made application to the Federal Deposit Insurance L;o rporation for continuation of insurance as a nonmember bank, eY accomplish the termination of its membership is extended no !our months from the date of waiver of the six months' °t1ce of intention to withdraw. Such extension of time is , :111Plicable without reference of individual cases to the Board. Please be guided accordingly." : T Letter to Mr. Young, Vice President of the Federal Reserve Bank otellicag°, reading as follows: • tre "Reference is made to your letter of January 26, 1937, namitting the application of 'The First National Bank in Dolt()n , Dolton, Illinois, for permission to act as trustee -4.! the liquidation of The First National Bank of Dolton. not "The Comptrolle r of the Currency has advised that he does a , look with favor upon a national bank being liquidating 4at of another bank, and that The First National Bank in Th_t°n is being requested to resign as liquidating agent of ze%First National Bank of Dolton. The Comptroller has recomBe ed, therefore, that the application of The First National in Dolton for permission to act as trustee in the liquidavn of its predecessor bank be disapprove d. on, Inasmuch as the bank requested authority to act as trustee 11:1 1' in the one instance, it appears that the position taken the he Comptroller of the Currency will eliminate the cause for ti request and,therefore, the Board will consider the applies°fl as having been withdrawn and will close its files in the 327 2/19/37 -4"case. Please advise The First National Bank in Dolton of the Board's position in the matter." Approved unanimously. Letter to Mr. Fletcher, Vice President of the Federal Reserve 13arlic of Cleveland, readine, as follows: "Reference is made to your letter of January 28, 1937, with regard to the reauest of the Commercial Bank, Delphos, 01110, that it be not required to submit the report as of Derc,errIber 31, 1936 of its affiliate, the Tr -County Real Estate ' ompanY, Delphos, Ohio. "It appears that the Tr -County Real Estate Company is a subsidiary of the member. bank, organized for the purpose of holding the 'Other real estate' of the bank; that, byrea8°11 of the waiver provisions adopted by the Board and printed On Form 220b, the affiliate has not been required to submit ZnY reports since enactment the of the Banking Act of 1935, ttill.1,t that a report as of December 31, 1936 was not waived by all:se provisions because on that date the bank was carrying ...,s6,800 loan to the affiliate; that this loan was made by member bank to its affiliate in order to provide funds ; .ler the payment of an 'existinq, mortgage on property which b s been sold by the affiliate and for which payment is to made in full on or before March 1, 1937; and that the loan is to be Paid off on March 1, 1937, whereupon the bank contemplates dissolving the Tr -County Real Estate Company. ies4.."In the circumstances and in accordance with your sugor 61°n, the Board waives the requirement for the submission n_ report on Form 220 as of December 31, 1936 by the Tri"Altity Real Estate Company, Delphos, Ohio." Approved unanimously. Letter to the Presidents of all Federal reserve banks, reading ' °11ovis: 0,__ "The Board notes from the minutes of the meeting of the 1- ence of Presidents held in Washington on Monday, Jan1937, that consideration was given to a letter dated December 1, 1936, from President Fleming of the Federal ReServe or 'e Bank of Cleveland addressed to Mr. Morrill, Secretary the ,-)Oard D of Governors, and to Mr. Morrill's reply thereto 114er 328 2/19/37 -5- "dated December 11, 1936, with respect to a suggested uniform P°11cY under whicl the Federal Reserve banks would have authority to spend up to .t100 for each employee retiring after long service for a gift that might be retained as a personal remembrance of the employee's associatior with the bank and itS personnel. It is also noted that the Conference decided that this is a matter which should be left to the board of directors of each Federal Reserve bank. "Such infonaation as is available at the Board's offices would indicate that none of the Federal Reserve banks has made it 8 practice to purchase gifts with bank funds for amloYees leaving the service of the Federal Reserve bank and t is assumed that no Federal Reserve bank will inaugurate such a Practice without first taking the matter up with the Board of Governors." Approved unanimously. Memorandum dated February 16, 1937, from 'Mr. Vest, Assistant Gene,— ."1-L Counsel, recommending that there be published in the March issue °r the Federal Reserve Bulletin statements in the form attached to the nieni°1.enduir. with respect to the followinP subjects: (1) Adoption of the Supplement to the Board's Regulation D increasing reserve requirements. (2) (3) Recent amendments to Regulation Q regarding the payment of interest on deposits. Compilation of State laws relatim to bank reserves, Prepared by Counsel's office with the assistance of Counsel to the Federal reserve banks, to supersede a similar campilation published in the Federal Reserve Bulletin for September 1930. Approved unanimously. Thereupon the meeting adjourned. ( -6(GAZQL. 1 4PProved: 0-14L—Q () Secretary.
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