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A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Tuesday, February 24, 1931, at 2:30 p.m. PRESENT: PRESENT ALSO: Governor Meyer Mr. Hamlin Mr. Miller Mr. James Mr. Pole Mr. McClelland, Assistant Secretary. Mr. Wyatt, General Counsel. The minutes of the meetings of the Federal Reserve Board held on February 11, 19th and 20th were approved. The minutes of the meetings of the Executive Committee held on February 13th and 20th were approved, and upon motion, the actions recorded therein were ratified. The Assistant Secretary presented various matters of business which were considered by the Board and acted upon as follows: Report of Executive Committee on letter dated February 20th from the Com ptroller of the Currency, recommending approval of a salary of 43600 " 13 annum for National Bank Examiner Fred A. Guiles, assigned to the 5"th Federal Reserve District; the Board's Committee also recommending ePprovels Approved. Uemorandum dated February 20th from the Director of the Division of aesearch and Statistics, recommending the appointment of Mr. Wendell E. Th°111e as Research Assistant in that division at a salary of0500 per el11111m, e ffective March 1, 1930. Approved. Report of Executive Committee on memorandum dated February 16th from the Boar (I Examiner in Charge, submitting draft of reply to letter dated -.'rST 10th from the Federal Reserve Agent at Minneapolis with further 2/24/31 - 2- reference to the membership in the Federal Reserve System of the First State Bank of Opheim, Montana, which was considered at the meeting of the Board an January 14th; the proposed letter advising that in accordance with the recommendation of the Executive Committee of the Minneapolis Bank, the Board will take no action at this time toward discontinuing the membership of the institution, although it will expect the Federal Reserve Agent to keep the Board advised from time to time with regard to the situation. Upon motion, the letter submitted by the Examiner in Charge was approved. Memorandum from Counsel dated February 13th, submitting draft of reply to a letter dated February 4th from the Federal Reserve Agent at Dallas, inquiring whether under certain facts stated the Citizens State ank Of Memphis, Texas, has violated the statute prohibiting loans on its °wIti stock by a member bank. After discussion, upon motion, the letter submitted by Counsel was amended and ordered transmitted. Memorandum from Counsel dated February 13th advising (1) that the State Court has sustained the motion filed by Counsel of the Federal Reserve Bank (If iiichmond in the case of the Federal Reserve Bank v. Attmore, which rethat case to a simple suit an a promissory note and deprives it of 411 System importance unless the defendant appeals to the Supreme Court of 14(11 ' th Carolina, and (2) that the same attorneys who represented the defendant ill the Attmore case have instituted a new suit against the Federal Reserve raising several questions of System-wide importance, which will be hEttd1 ed in consultation with Hon. Newton D. Baker, who was retained on a aYatem basis, not only in the Attmore case, but any other related litigation. 4/24/3.1 3 - In this connection, Mr. 'Jyatt reported verbally that he has received Just this morning a letter fram Counsel of the Federal Reserve Bank of iticlimond, advising that the Attmore case has been appealed, and that he has 'wired Mr. Baker requesting that he immediately communicate with Mr. Wallace, CoUnsel for the Richmond Bank. After advising the Board of the information which he had regarding the appeal, Mr. Wyatt, himself, was instructed to get in touch with Mr. Wallace and secure full information and render such assistance as he may be able. At this point Mr. Wyatt left the meeting. Memorandum from Counsel dated February 20th with regard to the application of Mr. Henry H. danger, for permission to serve at the same tiMe as a director of the National Bank of Commerce, the Guardian Detroit 1/ank and the Union Guardian Trust Company, all of Detroit, Michigan, and ref . erring to the application of Mr. Robert 0. Lord, involving the same institutions, and several other applications which the Federal Reserve Agent at Chicago advises may be filed. :11th his memorandum, Counsel allbmitted draft of a letter to the Federal Reserve Agent, requesting that be'f(Ire the Board acts on Mr. Sanger's application, it be furnished with till ' information with reference to any other officers, directors or ell1Pl oYees of the National Bank of Commerce who are serving without the 11°4rcl's permission either one or both of the state institutions included 241'• Sanger's application; and also that the Federal Reserve Agent laws a41gate certain other permits previously issued by the Board involving bttict . a included in Mr. Sanger's application and furnish the Board with a tee oramendation as to whether any of these permits should be revoked. Upon motion, the letter submitted by Counsel was approved. - /6 2/24/31 • -4 - M.emoranduM dated February 24th from the Examiner in Charge with reference to the condition of the Bank of Auburn, Auburn, Pennsylvania, as disclosed bY the report of an examination of the institution made as at the close of business December 16, 1930; the Examiner in Charge recommending that unless ita capital is restored or further acceptable guarantees are obtained in an amount sufficient to afford a reasonable protection to the depositors of the bank, the bank be cited to show cause why its membership in the Federal Reserve aYstem should not be discontinued. At the suggestion of the Governor, the memorandum and attached file was ordered circulated and presented for consideration at a later meeting. Mr. James presented a letter addressed to him by 1.1r. Whitefoord 11 II. Colo of Touisville, Kentucky, with regard to his serving as a director °f a new national bank being organized in Louisville for the purpose of t4king aver certain assets and assuming certain liabilities of the lIational 844k of Xentucky, in addition to continuing his present service as a director Of the American National Bank of Nashville and the Fidelity and Columbia 1111/3t Company of Louisville. 2Lr. James stated that both the Comptroller of the Currency and the Committee in charge of the organization of the new bank 4re e xceedingly anxious to have Mr. Cole on the directorate, but that kr. 0 °la is reluctant to accept unless he can receive some assurance that when hie foal application is filed, after the organization of the bank, it will receive favorable consideration by the Board. After discussion, upon motion, Mr. James was authorized to advise Mr. Cole informally that when his application to serve the three banks is received by the 2/24/31 (10 Board, it will have favorable consideration. The meeting adjourned at 3:25 p.m. R(.7Jag Assistant Secretary. APproved:1 ,___:7 KD
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