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584 A meeting of the Executive Committee of the Federal Reserve " 8 was held in Washington on Wednesday, February 21, 1934, at 11:30 a. pie PRESENT: Mr. Black, Governor Mr. Hamlin Mr. Thomas Jr. Szymczak Mr. Morrill, Secretary 1,2‘. Carpenter, Assistant Secretary Yr. Bethea, Assistant Secretary The Committee considered and acted upon the following matters: Telegramsdated February 21, 1934, from Mr. Curtiss, Chairman of tile Federal Reserve Bank of Boston, Mr. Austin, Chairman of the Federal 4ssrve Bank of Philadelphia, and Mr. Wood, Chairman of the Federal ReE4 e Bank of St. Louis, all advising that, at meetings of the boards of " (11.rectors today, no changes were made in the banks' existing schedules or rates of discount and purchase. Without objection, noted with approval. Telegram to Mr. Hoxton, Federal Reserve Agent at the Federal "Ye Bank of Richmond, reading as follows: "Your letter February 16. Board approves appointment of John SUllivan as examiner in Federal Reserve Agent's department your nlak at salary rate 42,400 per annum effective upon assuming duties. 4-J-ease advise effective date." Approved. Letter to 1,1r. Stevens, Chairman of the Federal Reserve Bank of 'reading as follows: 193 "Receipt is acknowledged of Mr. Young's letter of February 17, attention to the termination on February 28, 1934, of the Callingcalling 1 , - -Leave of absence granted to Governor McDougal, and stating that $3,9 due to lapse of time, he will not be eligible for the benefits (14 the pension plan which goes into effect on March 1, 1934, your 4rectors desire to request a few days further extension of his "leave of absence. "In order to remove any question as to Governor LicDougal's eligibility for a pension, arising from the circumstances referred to, if your directors should desire to grant a leave of absence Without pay to Governor —cDougal for a brief period beyond February 21, 1034, the Board will interpose no objection." Approved. Letter to Sr. 1,,cKay, Deputy Governor of the Federal leserve Bank Ohicago, reading as follows: 1 "Receipt is acknowledged of your letter of February 17, 1934, inclosing enrollment blanks and data relative to the 1Zetirement SYstem for delivery to the telegraph operators in the ,:ashington rice of the Leased V[ire System. Your letter calls attention to It3he fact that the salaries of the operators are paid by the Chicago ,111c, and you request advice as to whether their enrollment in the 2et1rement System as employees of the Federal reserve bank, and 6he addition to your monthly report to the Board covering leased wire operations of your bank's contribution to the Retirement System l'or these employees, meet with approval of the Federal Reserve Board. "In this connection, reference is made to the Board's letter of Xalle -4arY 19, 1031, in which the position was taken that the telegraph °Perators in the Washington office should be regarded as employees the Federal Reserve Bank of Chicago in connection with providing e1,11Ployees' compensation insurance. The Board feels that they also !!lould be considered as employees of the Federal Reserve Bank of L4l1cago for the purposes of membership in the Retirement System, 811(.1 aPpreves their enrollment as such. The Board also approves the dition to the monthly report submitted by your bank covering leased tilre operations of the contributions made by your bank to the Retire2_ 11t SYstem on behalf of these employees. Accordingly, the blanks data inclosed with your letter are being handed to the operators . 1th the request that they transmit the enrollment blanks directly 4° Lir. R. S. Hargreaves, manager of your personnel department, or, the event teat they elect not to become members, that they for1,:r. Hargreaves within sixty d Vs proper notice of such election to from March 1, 1934." r Approved. Letter dated February 17, 1934, from Er. Wood, Chairman of the 'ederal %' the ;Qeeerve Bank of St. Louis, advising that the board of directors bank, at its meeting on November 15, 1933, appointed 1;:r. WM. C. Itkc)ritt;ortiery as a director of the Louisville branch of the Federal Reserve 11). 586 2/4/34 or St. Louis for the -3unexpired portion of the term ending December 31, 19241 to succeed 1,1r. John T. Reynolds, who died on October 4, 1933. Noted. Letter dated February 16, 1934, from flr. Walsh, Chairman of the hlerel Reserve Bank of Dallas, inclosing the oath of office and biohical sketch of hr. Sam R. Lawder, Vice President of the First National -n Houston, lexas, who was appointed by the board of directors of the Ikaias bank, at its meeting on February 7, 1934, as a director of the ste-n ' ,ranch of the Federal Reserve Bank of Dallas for the unexpired por% Of the term ending December 31, 193b; to succeed Mr. N. E. Meador, de- Noted. Telegram to hr. Williams, Federal Reserve Agent at the Federal Re4116 Bank of Cleveland, reading as follows: "Refer Fletcher's letter February 13, 1934, re application The 13eop1es Bank and z)avings Company, Cincinnati, Ohio, Board grants extension of time to March 22, 1934, within which the bank may accomPlish its admission to membership." Approved. Telegram to hr. Stevens, Federal Reserve Agent at the Federal aflk of Chicago, referring to the application of the "American 4416 Bank of .irankenmuth", Frankenmuth, Michigan, for permission to with. 1.41, bar nediately from membership in the Federal Reserve System, and stat14€ that the Illtention. to Board waives the usual requirement of six months' notice of withdraw and that, accordingly, upon surrender of the Fed- I Iseeerve bank stock issued to the American State Bank of Frankennuth, t4t1 ll'ederal Reserve Bank of Chicago is authorized to cancel such stock and 1414 4 refund thereon. Approved. 587 2/21/34 -4Telegram to Mr. Stevens, Federal Reserve Agent at the Federal 11"ierTe Bank of Chicago, referring to the application of the "Washington 4114gs Bank", Washington, Michigan, for permission to withdraw immedi"ellr from membership in the Federal Reserve System, and stating that tile Board waives the usual requirement of six months' notice of intention toVithdraw and that, accordingly, upon surrender of the Federal reserve stock issued to the Washington Savings Bank, the Federal Reserve BEI* of Chicago is authorized to cancel such stock and make a refund thereon. Approved. Letter to the King.7.ton Bank and Trust Company, Kingston, Pennsyl- lrenial reading as follows: , "Effective if and when the Kingston Bank and Trust Company, .i ...ngston, Pennsylvania, is converted into a national banking association and is authorized by the Comptroller of the Currency to commence business as 'The _ingston National Bank', the Federal Reserve Board aloProves the application filed by your bank on behalf of such nation- bank for permission to act, when not in contravention of State or local law, as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of !states of lunatics, or in any other fiduciary capacity in which State banks, trust companies or other corporations which come into ! ampetition with national banks are permitted to act under the laws or the State of Pennsylvania, the exercise of all such rights to be Tlbject to the provisions of the iederal Reserve Act and the regulations of the Federal Reserve Board. . "After the conversion of the Kingston Bank and Trust Company bernes effective and the Comptroller of the Currency authorizes the ilitlonal bank to commence business, the board of directors of the ! 4 tter bank should adopt a resolution ratifying the action taken on !” behalf by your bank in making application for permission to exercise trust copy of the powers, and it is requested that a certified Board for Reserve Federal the ' 3:!_solution so adopted be forwarded to has resolution such of copy b6s records as soon as possible. When a right the covering certificate oe ferl received by the Board, a formal powers will be for, The Kingston National Bank to exercise trust liarded to it." V j Approved. 588 2/Z1/34 -5Letter dated February 20, 1934, approved by five members of the to jr. Wood, Federal Reserve Agent at the Federal Reserve Bank (3tSt. Louis, reading as follows: "Reference is made to your letter of iTanuary 22, 1934, incloslng the application of 'The Southern Illinois National Bank of East St. Louis', East St. Louis, Illinois, for full fiduciary powers. . "The Comptroller of the Currency recommends that action on th1e application be deferred until after the next examination of the bank, which, in view of the fact that the last examination was Made as of Larch 2, 1933, will probably be made in the near future. "The Board concurs in the Comptroller's recommendation, and . 17111 defer action on the pending application until an examination bY a national bank examiner, has been completed and the report thereof its available, at which time it will oe glad to have the benefit °f any further recommendation you may wish to make in the premises. "In this connection, the Board would like to receive a copy of WV contract or agreement entered into between the two institutions at the time the subject bank took over the affiliated Southern Illinois Trust Company." Approved. Letter to Mr. O'Connor, Comptroller of the Currency, reading as 41101178: "Reference is made to the application of 'The Mechanics Nation;I'. Bank of Providence', Providence, Rhode Island, for permission to :duce its common capital stock, as set forth in your memorandum of *uebruarY 9, 1934. "In this connection you are advised that the applicant bank's holA4 , --Lug company affiliate, the Industrial Trust Company of Providence it which permit voting Island, has not as yet been granted the its stock1 8 necessary for the trust company to have in order to vote ; no take will therefore, in the applicant bank. The Board, National Mechanics n!!ion on the proposed capital reduction of The a voting permit .7441: of Providence, until such time as the matter of upon." 4'°11 the Industrial Trust Company has been acted Approved. toliows: reading as Letter to Lir. O'Connor, Comptroller of the Currency, "In accordance with your recommendation, the Federal Reserve to capital stock of 'The d approves a reduction in the common ' /441 frolu awk National Bank of Jchenectady', .3chenectady, New York, 589 2/21/34 ”6 V500,000 to ,?200,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale at par of „?300,000 Par value preferred stock to the Reconstruction Finance Corporation, and provides also that the funds released by the reduction in eemmon capital stock, together with such portion of the bank's surPins and undivided profits accounts as may be necessary, shall be Used to eliminate estimated losses and securities depreciation, all as set forth in your memorandum of February 6, 1934." Approved. Letter to Mr. O'Connor, Comptroller of the Currency, reading as t011ows: "In accordance with your recommendation, the Federal Reserve E3oard approves a reduction in the common capital stock of the 'New Pirst National Bank in New Hampton', New Hampton, Iowa, from 050,000 to C25,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale at par of e25,000 par value preerred stock to the Reconstruction Finance Corporation, and that the funds released by the reduction in =Limon capital, together with aPProximately :,;20,000 to be made available by a voluntary casti, contribution, shall be used to eliminate a corresponding amount of sUbstandard assets and securities depreciation, all as set forth in Y°ur memorandum of February 9, 1934." Approved. Letter dated February 20, 1934, approved by five members of the 11(41 , ' to rh-L'. O'Connor, Comptroller of the Currency, reading as follows: 13 "In accordance with your recommendation, the Federal Reserve , 43tIrd approves a reduction in the cammon capital stock of 'The ; Wedish-merican National Bank of Rockford', Rockford, Illinois, : lam 4125,000 to :A0,000, pursuant to a plan which provides that 11,e bankts capital shall be increased by the sale at par of („3200,000 value preferred stock to the Reconstruction Finance Corporation, that the funds released by the reduction in cannon capital toWith a portion of the bank's surplus and undivided profits, be eitT used to eliminate substandard assets and securities depre; 14e"-on in the amount of approximately : 4 200,000, all as set forth 7°Ur memorandum dated February 9, 1934." r Approved. Letter to Mr. O'Connor, Comptroller of the Currency, reading as tollowa: 590 "In accordance with your recommendation, the Federal 11.eserve Board approves a reduction in the common capital stock of 'The First Lational Bank of Windsor', Windsor, Colorado, from 340,000 to c;25,000, Pursuant to a plan which provides that the bank's capital shall be increased by the sale at par of 325,000 par value preferred stock to the Reconstruction Finance Corporation, and that the funds released by the reduction in common capital shall be used to eliminate a corresponding amount of unsatisfactory assets, all as set forth in your temorandum of February 8, 1934." Approved. Letter to Mr. O'Connor, Comptroller of the Currency, reading as follow "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The 1.1.,ational City Bank of Denver', Denver, Colorado, from 4100,000 to ‘0,000, pursuant to a plan which provides that the bank's capital snail be increased by the sale at par of 50,000 par value preferred stock to the Reconstruction Finance Corporation, and that the funds released by the reduction in common capital shall be used to eliminate unsatisfactory assets in the amount of $47,500 and to augment the undivided profits account by 32,500, all as set forth in your Xemorandum of February 5, 1934." Approved. Letter to 14.r. O'Connor, Comptroller of the Currency, reading as t011ows "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The %Ilatercial National Bank of Brady', Brady, Texas, from 0.30,000 to '1,7;500, pursuant to a plan which provides that the bank's capital 8:!4-L1 be increased by the sale at par of 035,000 par value preferred ck to the Reconstruction Finance Corporation and that the funds to el4.!_ ased by the reduction in common capital stock shall be used letter of 1.,:inate undesirable assets, all as set forth in your " rilarY 10, 1934." I Approved. Letter to Mr. O'Connor, Comptroller of the Currency, reading as how goar,"In accordance with your recommendation, the Federal Reserve " approves a reduction in the common capital stock of 'The First 591 2/21/34 -8-- "National Bank of Bogata', Bogata, Texas, from c?50,000 to c40,000, 1?Ursuant to a plan which provides that the bank's capital shall be Increased by the sale at par of 10,000 par value preferred stock to the Reconstruction Finance Corporation, and that the runds released by the reduction in common capital shall be used to eliminate a correspondinG amount of substandard assets, all as set forth in your letter of February 10, 1934." Approved. Letter to Mr. O'Connor, Comptroller of the Currency, reading as t°110ws: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of the 'Security-First National Bank of Los Angeles', Los Angeles, California, from i30,000,000 to ,g4,000,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale at par of 012,000,000 par value preferred stock to the Reconstruction Finance Corporation, and that the funds released by the reduction in common capital stock shall be used to establish a reserve for the purpose Of charging down and/or charging off unsatisfactory assets as and 7ben determined by the bank and/or as and when directed by the Comptroller of the Currency, all as set forth in your letter of February 121 1934." Approved. Telegram to Ni'. Newton, Federal Reserve Agent at the Federal Reof San Francisco, stating that the Board has considered the 4411-cation of the "Chandler Investment Company", Marshfield, Oregon, tor 4 Iroting permit under authority of section 5144 of the Revised Statutes °t the etclek United States, as amended, entitling such organization to vote the which it owns or controls in "The First National Bank of Coos Bay 'anfield", Marshfield, Oregon, and has authorized the issuance of a -4 ' 4alit d 6- Permit to the applicant, subject to the following condition: ,permit hereby "Prior to the issuance of the limited votinT time as shall be such within Uthorized applicant shall agree that ! 'Axed by the Federal Reserve Agent at the Federal Reserve Bank of useThe First National Bank of Coos Bay Prancisco, it will cause 4t Marshfield to rehabilitate its capital structure, if it has not 592 2/21/34 -9- "already done so, in accordance with a plan or plans which shall have been approved by the appropriate supervisory authorities and Shall be satisfactory to the Federal Reserve Agent at the Federal Reserve Bank of San Francisco, which plan or plans shall include Provisions for: "(1) The reduction of the common capital stock of such bank from 400,000 to :„:50,000; "(2) The issuance and sale for cash to the Reconstruction Finance Corporation of preferred stock of such bank in the amount Of ,.50,000; "(3) the charging off or otherwise eliminating of (a) losses In loans and discounts, (b) depreciation in stocks and defaulted securities; (c) depreciation in securities not of the four highest grades as classified by an investment service organization regularly engaged in the business of rating or grading securities; (d) depreciation in furniture and fixtures; (e) all other items Classified as doubtful and (f) all other losses, such charge-offs or eliminations to be based upon and to be made to the extent of the classifications determined by M. C. Wilde, a national bank examiner, in a revised classification of the assets of such bank, as of November 13, 1933, and "(4) the retention as property of such bank of all assets Which may be charged off or otherwise eliminated pursuant to the foregoing clause numbered (3) of this agreement so that such assets shall not be distributed to the shareholders of the undersigned or of such bank or otherwise released in any manner whatsoever." elld tor the following purposes: "1. To elect directors of such bank at any meeting of shareholders, or at any adjournment thereof, at any time prior to May 1, 19341 and to act thereat upon such matters of a routine nature as 4re ordinarily acted upon at the annual meetings of such bank. "2. At any time prior to May 1, 1934, to act upon a proposal or Proposals to authorize and effect a reduction in the common capit l stock of such bank from :J00,000 to i; j -, 50,000 and an increase in and sale of preferred issuance the aftle capital stock of such bank by 0,°ek having a Dar value of 50,000, and to amend the bank's articles eesociation and to do all things necessary to carry out such pur:28es, provided that such proposal or proposals shall be in accorde with a plan or plans which shall have been approved by the the J1Dr°Priate supervisory authorities and shall be satisfactory to -uederal Reserve Agent at the Federal Reserve Bank of San Francisco." Th egrala also authorized the agent to have prepared by counsel for ' ej ' the pederal reserve bank, and to issue to the Chandler Investment CamDeciTir " limited voting permit in accordance with the telegram when the r;Cle? -10e°114ition prescribed therein has been complied with. Approved. Letter addressed by Lkwernor Black on February 14, 1934, to Er. E. G . Bennett, :LctinL; Chairman of the Federal Deposit Insurance Corpora- t104, and subsequently approved by four members of the Board, reading as folAows: "Receipt is acknowledged of your letter of February 12, 1934, in which you request advice as to the acceptability of a revision 01 the amendment to Section 0 of the Federal 2- ,eserve Let which was sugested in the Board's letter to you of February 9, 1934. As proposed by the Board, the amendment stated that for the purposes Of membership of a bank in the Federal Reserve System, the terms . capital' and 'capital stock' shall include the amount of outstanding capital notes and debentures legally issued by the applying bank and purchased by the Reconstruction Finance Corporation. .10 revised in the manner you suggest, the amendment would provide that 1°r the purposes of mambershil. the terms 'capital' and 'capital stock' shall include the amount of outstanding capital notes and debentures legally issued and outstanding, or (upon) other obligations of the bank, payable only after provision has been made for tne full satisfaction of all claims or depositors and other creditors except claims upon such capital notes, such debentures and other sUch Obligations. "The amendment to Section 9 of the Federal Reserve Act which suggested in the Board's letter of February 9 was intentionally t?-1111ted to capital notes and debentures purchased by the Reconstrucion Finance Corporation. The Federal Reserve Board in November, J-9°31 stated that it would consider the proceeds of capital notes alla debentures purchased by the Reconstruction Finance Corporation !Is capital funds of State banks and as part of the unimpaired capil required of such banks for admission to membership in the Fedal Reserve System. The position taken at that time related only F? capital notes and deoentures purchased by the Reconstruction 111ance Corporation and the proposed anendment to Section 9 of the , ederal Reserve Act was suggested in order to clarify the law with : ?sPect to the question which the Board then had under consideration. Board did not understand at that time that your corporation had 4,11 mind capital notes and debentures other than those purchased by that such Reconstruction Finance Corporation and it does not feel part of a as considered be should debentures ti,ner canital notes and Tlue capital of a bank for the Purposes of membership in the Federal 5reserve System. In this connection it is to be noted that Section t,,P1 or the Act of I:arch 9, 1933, as auended, provides that, in order hat a State bank or trust company which is not permitted to issue provided with iltererred stock exempt from double liability may be r 594 . /21/34 2 -11- "capital funds, the Reconstruction Finance Corporation may purchase legally issued capital notes or debentures of such a State institution. This provision of law may be considered as a suggestion by Congress that.the proceeds of such notes and debentures purchased by the Reconstruction Finance Corporation may be regarded for certain purposes as capital, but there has been no similar suggestion on the part of Congress with regard to other capital notes and debentures. "In the circumstances, the Federal Reserve Board is unable to concur in your suggestion that the amendment to Section 9 of the Federal Reserve Act proposed in the Board's letter of February 9 be revised in the manner indicated in your letter." Approved. Letters dated February 20, 1934, approved by four members of the 4erd, to Honorable Duncan U. Fletcher, Chairman of the Committee on lig and Currency of the United States Senate, and to Honorable Heary 84 Steagall, Chairman of the Committee on Banking and Currency of the liouse or Representatives, reading as follows: "The Federal Reserve Board recommends the enactment of an amendment to the third paragraph of Section 13 of the Federal Re!"ve Act so as to authorize any Federal reserve bank to discount for individuals, partnerships, or corporations notes, drafts and b ills of exchange which are either indorsed or secured to the satis'action of the Federal reserve bank, in lieu of the existing requirerIlent that paper so discounted be both indorsed and secured, and subject to the other conditions stated in that paragraph. "It will be recalled that Section 13 of the Federal Reserve Act was amended by the Act of July 21, 1932 so as to add thereto a new Paragraph under which the Federal Reserve Board, in unusual nd exigent circumstances and by the affirmative vote of not less an five members, may authorize any Federal reserve bank during 14V1 Periods as the Board may determine to discount for any individ, n-L, partnership, or corporation notes, drafts, and bills of exchange 131- the kinds and maturities made eligible for discount for member ' t. ks, when indorsed and otherwise secured to the satisfaction of 4, . Federal reserve bank and when such individual, partnership, or r ; rPc)ration has been unable to secure adequate credit accommodations , r om Other banking institutions. Pursuant to the authority of this emnendment co to the law, the Federal Reserve Board authorized such disA,!"8 by any Federal reserve bank for a six months' period beginning 2%ust 1, 1932 and has renewed such authorization from time to time ;10.4that it has been in effect continuously and is still in effect. er this authority Federal reserve banks have discounted for r 595 2/21/34 -12- "individuals, partnerships, and corporations notes, drafts, and bills Or exchange in the amount of 0.,370,000, of which ,340,000 was outstanding on February 7, 1934. "On account of the requirement that paper so discounted be both indorsed and secured it has been necessary for the Federal reserve banks to decline to make such discounts in cases where it might otherwise have been possible to do so. It sometimes happens that an individual) Partnership or corporation which may ue desirous of discounting 1.)aper directly with a Federal reserve bank can furnish satisfactory indorsement of the paper to be discounted, or satisfactory security, but is unable to furnish both the indorsement and security; and in such cases the discount my not lawfully be made. The Board believes that if the law should be changed so as to require, in the alternative, s atisfactory indorsement or satisfactory security, the Federal reserve banks would be able to extend credit to individuals, partnerships, or corporations in cases where they now have no such authority; and such a liberalization of this method of affording credit to industry would seem to be desirable under existing conditions. Inasmuch as it would Still be necessary after such an amendment to the law for the borrowers to furnish either satisfactory indorsement or satisfactory security, lt is believed that the Federal reserve banks would be adequately protected in making such advances. "It is recommended, therefore, that the requirement for both indorsement and security with respect to discounts for individuals, Partnerships, or corporations under the third paragraph of Section 13 Of the Federal Reserve Act be changed 30 that either indorsement or security of a satisfactory character will be sufficient under the law; alld there is inclosed herewith a draft of a bill to accomplish this IrP°30. The Board hopes that your Committee may give this matter "s early and favorable consideration." t Approved. Memorandum dated.i,ebruary 20, 1934, approved by five members of the cl t ' 8041 iar. Broughton, Commissioner of the l'ublic Debt, reading as fol- "I have your memorandum of January 31, in which you state that narranging production of the new gold certificates it will be very e 14?rn1 if the Federal Reserve Board can furnish you some preliminary . : : v!tilmate of the probable or possible requirements by denominations. it is difficult to state definitely at this time what the reraments may be, so far as the System is concerned, a stock of 11,656,000,000 of the new gold certificates, in the denominations : ii°1711 below, would seem adequate to meet any requirements which are 4 461Y to arise in the immediate future. ' T 596 -13"Denomination No. of Sheets 3,500 3,000 7,000 10,000 0100,000 10,000 1,000 100 23,500 Amount .2:,4,200,000,000 360,000,000 84,000,000 12,000,000 4,656,000,000" Approved. Letter to Er. Curtiss, Federal Reserve Agent at the Federal Re8"e Bank of Boston, reading as follows: "In your letter of January 4, 1934, you referred to the fact that certain State banks which have applied for membership in the Federal Reserve System but which have not yet became members have been certified for the Temporary Federal Deposit Insurance Fund and You request to be advised whether it will be necessary for you to examine such banks after they may have become members of the System 11 view of the fact that they have already been certified as members °r the Temporary Fund and would automatically become eligible for Permanent insurance if they continued to be non-members. "As you know, under the provisions of Section 12B of the Fed"al Reserve Act, every member bank is required to apply to the Federal Deposit Insurance Corporation for Class A stock. Upon re2elPt of such an application from a State member bank, the corporais required to request the Federal Reserve Board to certify Upon the basis of a thorough examination of such bank whether or 40t its assets are adequate to enable it to meet all of its liabilties to depositors and other creditors as shown by the books of he bank; and the Board is required to make such certification as 8?°4 as practicable. Under the law, therefore, it appears that it 1 .11 be necessary for the Federal Reserve Board to make such certif111 ,?ation with respect to every State member bank which becomes a -Lass A stockholder of the corporation on or before July 1, 1934, ! feEardless of the time of its admission to membership in the Federal Reserve System; and, accordingly, as suggested in the Board's ?tter of December 7, 1933 (X-7702), there should be a thorough 4131aination of all State member banks, including those which may ve recently become members of the System, on the basis of which thea;I Board may discharge the duties imposed upon it by the law. ere is no requirement, however, that the certification by the Board be made upon the basis of an examination which takes place after a bank becomes a member and an examination made in connection with an application for membership may properly be used for Purpose 8 if sufficiently current and thorough. The Board feels t1 : possible, the certification with respect to every Ste. if at all 110a:4—e. IlleMber bank should be based upon a report of examination -e since January 1, 1934, although if necessary a thorough ex- t 4 597 2/21/34 -14- "amination made in December, 1933, may be used as the basis for such certification." Approved. Letter to kr. Johns, Acting Governor of the Federal Reserve Bank Atlanta, reading as follows: . "Receipt is acknowledged of your letter of February 12, 1934, With regard to the advances made by your bank under the provisions Of Section 10 (b) of the Federal Reserve Act to the Georgia Savings Bank and Trust Company of Atlanta which has, since the time the advances were made, become a nonmember bank. You state that on January 27, 1934 you reduced the rate from ki; to on the indebtedSS of this Company, the present outstanding balance of which is y550,000; but, in view of the Board's telegram of January 7, 1933, Trans. No. 1536, you request approval of the Federal Reserve Board Of Your action in making this reduction in the rate. "In the light of the facts stated in your letter and of the 13(1)ar's telegram of July 14, 1933 approving for your bank a rate of 4tj,, on advances to member banks under Section 10 (b) of the Federal Reserve Act and on advances to nonmember banks under Section 404 of the Act of March 9, 1933 as amended, the Federal Reserve Board approves the action of your bank in reducing from 5'1", to 4i'ci; the rate on the outstanding indebtedness of the Georgia Savings Bank and Trust Company on January 27, 1934." Approved. The Secretary stated for the record that he had been advised 11111411Y by the State Department that the President of the United States 011 p euIllarY 16, 1934, signed a proclamation prescribing an additional 111311.c4 of one year after March 3, 1934, during which advances may be made bY Federal reserve bank under the provisions of section 10(b) of the ?ede rel. Reserve Act, as amended. Letter dated February 20, 1934, approved by five members of the 14°11rd ' an applicant for a permit under the Clayton Act, advising of %row, of his application as follows: Mr, a a4.. B. Porterfield, for permission to serve at the same time as 4.rector and officer of the National Bank of Monticello, Monticello, 598 2/21/34 -15- Illinois, and as a director and officer of the Porterfield's State Bank, Fairmount, Illinois. Approved. Letter to an applicant for a permit under the Clayton Act, ad1181ng of approval of his application as follows: Xr. Frederick H. Tarr, for permission to serve at the same time as a director and officer of The Rockport National Bak, Rockport, Vassachusetts, and as a director of the Gloucester National Bank Of Gloucester, Gloucester, Lassachusetts. Approved. There were then presented the following applications for original °ra dditional stock, or for the surrender of stock, of Federal reserve **.P4-1S12111.aa2 for ORIGINAL Stock: 1ctIo3 3. '44/lertiiiTI-Gal Bank, Alobler, Pennsylvania katriet lib. 4. National Bank of Toledo, Toledo, Ohio National Bank at Koppel, loPPel, Pennsylvania -46 IT ational Bank of Ford City, 11°rd City, Pennsylvania . bis4. . 1.4rlet Db. 7. at National Bank of Waupaca, pe "411Paca, Wisconsin nr4da National Bank, lieVada, Iowa katr ict No. 10. '4t. National Bank in Perry, l'erl*Y, Oklahoma A 14 "'4eations for ADDITIONAL Stock: OZ4. 3. ' 140174 Ba„ , Orrat ,clwn, Pennsylvania 0e4,8ville State Bank, '4eline cksville, Pennsylvania Shares 90 90 288 36 '72 396 36 36 '72 36 Total 36 594 2 599 -16412111.1-cations for ADDITIONAL Stock: (Continued) .Y2.11.t.../2iet No. 3. (Continued) The Firs--Flra7fional Bank of Seaford, ,. Seaford, Delaware zirst National Bank, ' l ennington, New Jersey First 'Zational Bank, ederikb Pennsylvania first rational Bank, ri„ Ge ttysburg, Pennsylvania Ile First National Bank, , N anticoke, Pennsylvania cranton 1:ational Bank, Scranton, Pennsylvania '. .2te City National Bank, , Sus quehanna, Pennsylvania ..Q1rst National Bank, Swineford, i'ennsylvania ''ellAral National Bank & Trust Company, York, Pennsylvania ',13trict No. 5. Citizens National Bank, f„, 4aizabeth City, Ilorth Carolina '-4e First National Bank of Nelson County, • L°vingston, Virginia 'Lc Ch arleston National Bank, Charleston, aest Virginia Shares 24 15 12 1 90 3L'O 5 30 111 471 1 113 129 • 3triot No. 6. -ee'l'i3la Railroad Bank ‘9- Trust Company, UCUsta Cleorgia gazlilton National Sank, t iC11°Xville, Tennessee '4 ational Bank, Shel byville, ilennessee 300 30 63 393 1 1 I4st ict o 7. i'lational Bank of Pontiac, '3°Irtiac, Michigan k)piltl'ict No. O. t I:atrOna, Bank, Minnesota 'National Bank, mh ChiPPs waPails, -Jisconsin ,.1.)eoPles National Bank, to'llikYltiard, Wisconsin T _eer l iational Bank, „isconsin 1 54 2 1 Total 58 1,052 2/21/34 600 -17- lications for SURRENDER of ,Dtock: vE lleY National Bank, ' Green Lane, Pennsylvania Di strict No. 4. Pa inesville National 'Lank & Trust Company, Pa Te inesville, Ohio Coshocton 1:ation 1 Bank, C oshocton, Jhio ihares UO 60 225 180 405 37 37 Dist 5 41e Fi rLiTtITLal Bank of ';;est Union, West Union, dest Virginia District No. 6. Pirst National Bank, rlockwood, Tennessee 41rst Rational Bank of Tampa, Tampa, Florida a..111k.ot No. 7. hrstiTaTTJETTBank, Hartrord City, Indiana Canton National Bank, , Canton, Illinois zirst National Bank, Canton, Illinois 441ena National Bank, Clalena, Illinois *.'rst National Bank, n, Gra ettiner, Iowa v.16National Bank, huPaca, 41sconsin First National Bank of West Allis, Weat 41113, Wisconsin 'sLrst N ational Bank, Till'rescott, Iowa e Central National Bank Trust Co., jittica, Indiana bis triet '-'2t Il Lj ational Bank of Linton, Indiana triet No. 9. ' I'St National Bank, 1' 3. r• eJ, , Lannesota National Bank) Michigan 66 120 186 57 150 81 120 19 39 180 11 36 693 81 21 38 601 2/21/34 -18- 4124.22tions for SURREIMER of Stock: uistrict No. 9. (Continued) St National Bank in hlanistique, tianistique, Michigan (Continued) 1018trict No 10 N ational Bank c:Trust Co., , North Kansas City, Missouri 4rst National Bank of Albuquerque, Albuqueroue, New Mexico zirst National Bank of Perry, Perry, Oklahoma No. 12. Ifliand Pendleton, Oregon Shares 39 98 33 360 38 431 Bank, 300 Total 300 2,291 Approved. Thereupon the meeting adjourned. ? Secretary. ' 4111arolired:
@FedFRASER