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-1 '- A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Friday, February 27, 1931, at 11:30 a. mi. PRESENT: Governor Meyer Mr. Hamlin Mr. Miller Mr. James Mr.. Pole Mr. McClelland, Assistant Secretary. The minutes of the meeting of the Executive Committee of the Federal Reserve Board held on February 21st were approved, and upon motion, the ttetione recorded therein were ratified. The minutes of the meetings of the Federal Reserve Board held on rebIlutrY 24th and 25th were alfw approved. The Assistant Secretary presented various matters of business which Ivers considered by the Board and acted upon as follows: Telegram dated February 25th from the Chairman of the Federal Res°, I've Bank of Boston, letter dated February 26th from the Secretary of the l'etlel'al Reserve Bank of New York and telegram dated February 26th from the (144Janyn —41 of the Federal Reserve Bank of Kansas City, all advising that their bOavA `48 of directors at meetings on the dates stated made no changes in the b444, existing schedules of rates of discount and purchase. Without objection, noted with approval. t4 Report of Executive Committee on letter dated February 26th from CctilThroller of ,13,500 the Currency, recommending approval of a salary of . ' 4414 for National Bank Examiner Walter E. Julius, assigned to the Fourth 41'41 Reserve District; the Board's Committee also recommending approval. Approved. ,1Paii(53 ( (1 2/27/31 -2Memorandum from the,Assistant Secretary dated February 27th, ' leclaimilending approval of a change from two days to one day in the interdistrict time schedule covering items from Charlotte to Xacksonville; the Q444ge having the approval of the Federal Reserve Banks of Richmond and Atlanta. Approved. Report of Executive Committee on letter dated February 24th from the l'ecleral Reserve Agent at Atlanta, submitting with his favorable recommendation and that of the Executive Committee of the Federal Reserve bank, an applica- 4°71 of the Marion Central Bank, Marion, Alabama, a member bank, for approval Qt its action of Xanuary 27, 1931 in purchasing the assets of the Peoples of Marion, and assuming certain liabilities of that bank; the Board's °Qpitoittee recommending approval. Approved. Memorandum from Counsel dated February 21st, submitting an application John McHugh for permission, under the provisions of Section 25 of the Reserve Act to serve at the same time as a director of the Chase 114ti0118.1 Bank of the City of hew York, and as a director of the Equitable 4astera Banking Corporation, a State foreign banking corporation, all of the 8t°ek of which is owned by the Chase National Bank. Upon motion, the application was approved. Memorandum from the Chief of the Division of Bank Operations dated 413 25th, recommending that hereafter special one day Treasury ' 41 ues, held by the Federal Reserve banks at quarterly tax payment cktee 2 be shown separately in the body of the weekly Federal reserve bank (1°Ilkti on statement against the caption "Special Treasury Certificate". After discussion, upon motion, it was voted to withhold action on the 17 .. 6. : . 1 ; 19 2/27/31 -3recommendation until it can be discussed with the Governors of the Federal Reserve banks at their next meeting. Report of Committee on Salaries and Expenditures on letter dated rebriary 26th from Deputy Governor Gilbart of the Federal Reserve Bank of Nciu. --York, recommending approval of a salary of (2,160 per annum, effective 311fle 1, 1931, for Dr. Harold Roy Moon, who has been employed as one of the 114Y81cians in attendance at the bank to succeed Dr. Robert H. Dinegar, teBigned; the letter also requesting approval of the payment of salary at the rate of 04,800 per annum from March 1, 1931 to May 31, 1931 to Dr. Walden 1141181 who, during that period, will be in attendance at the bank each day cillting the week, and at its conclusion, will return to his present schedule 44d ealary .of 2,400 per annum. Upon recommendation of the Committee on Salaries and Expenditures, the salary payments submitted in Mr. Gilbart's letter were approved. Natter ordered circulated at the meeting held on February 24th, -LY, memorandum dated February 24th from the Board's Examiner in Charge, 1744 regard to the condition of the Bank of Auburn, Auburn, Pennsylvania, 44c1 t he qUestion of continuance of its membership in the Federal Reserve After discussion, upon motion, the Governor was requested to communicate with the Federal Reserve Agent at Philadelphia and advise that on the basis of the bankts present condition, the Board is unwilling to approve his recommendation that no action be taken at the present time to discontinue the membership of the bank, but requests that he take up with the management of the institution the matter of restoring its capital or obtaining further acceptable guarantees for the protection of depositors. 411P1ieation for full trust powers filed by the Union National Bank 2/27/31 or Lenoir, N. C., which commenced business on January 29, 1931, having been organized for the purpose of acquiring the assets and assuming the liabilities, except liabilities to shareholders Of Lenoir, which closed on December 19, 1930. of the First National Bark In this connection, the 44eistant Secretary presented a letter from the Federal Reserve Agent at Richmond and a memorandum from the Comptroller of the Currency, recommending aPproval of the application. After discussion, 1113011 motion it was voted to approve the application of the Union National Bank of Lenoir for trust powers, on condition that they will be exercised only in the handling of such trusts as may be taken over from the First National Bank of Lenoir and no new business will be accepted, pending further consideration by the Board after the new institution has been examined by the Comptroller of the Currency. Application for full trust powers by the McDowell County National 114100t . Welch, West Virginia, which commenced business on December 20, 1930, 110 beon organized for the purpose of acquiring the assets and assuming the , -Liabilities of the McDowell County National Bank of Welch; together with /1 letter from the Federal Reserve Agent at Richmond and a memorandum from the CQMPtroller of the Currency, recommending aPproval of the application. After discussion, upon motion it was voted to approve the application of the McDowell County National Bank in Welsh for trust powers, on condition that they will be exercised only in the handling of such trusts as may be taken over from the McDowell County National Bank of Welsh and no new business will be accepted, pending further consideration by the Board after the new institution has been examined by the Comptroller of the Currency. At this point Mr. Gough, Deputy Comntroller of the Currency, joined bie eting, and consideration was given to an application which has been 2/27/31 -5- filed with the Comptroller by the Liberty National Bank and Trust Company , or Neyi York, New York, for permission to reduce its capital stock from $3 000,000 to.7)2,250,000; it being the intention of the bank to transfer to surplus account such part of the released capital as may be necessary to bting its surplus up to :1,000,000, and the balance to undivided profits. It was brought out that the bank's surplus has been reduced to less than ,'r600,000 by the elimination of losses, aggregating more than 1s800,000, set up by the National Bank Examiners during the last three tutmiiiations of the bank - over 700,000 at the examination made as of 11515cember 29, 1930. During the discussion Mr. T. T. YUlligan, the recently elected I'llesident of the institution, was also invited into the meeting and answered ilITIlries by the members of the Board regarding the bank's condition, its 14'esent management and its future policies and prospects. or the At the conclusion discussion, Messrs. Gough and Milligan left the meeting. Upon motion, it was then voted to approve the application of the Liberty National Bank and Trust Company of New York, New York, for permission to reduce its capital stock from 3,000,000 to %32,250,000. Itr111'13RTS OF STANDING COIZTITTEES: 111/ted, February 25th 27th Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Minute Book of this date. Recommendations approved. The meeting adjourned at 1255 p. 114 ( l G Wj Assistant Secretary. Al)ptov AlanLIRY 1:1MUTES (February 27, 1931) Reports of Standing Comthittee dated February 25th and 27th, recommending easflges in stock at Federal Reserve Banks, approved as follows: blications for SURRENDER of Stock: .12113.1,To. 1. First National Bank, Haverhill, Mass. (Decrease in surplus) .Tirst National Bank, Manchester, N. H. (V.L. terminal) liewmarket National Bank, Newmarket, N. H. (Decrease in surplus) 60 150 30 240 18 18 66 66 40 40 7. Nationa Bank, Fort Dodge, Iowa. (V.L.Suc. First State Bank) 240 240 „ketrict No. 8. 44n1 Nat ional Bank, Mt. Vernon, Ill. (V.L.Abs. by Third National Bank of Mt. Vernon) 75 75 tdr4.1rie Depot National Bank of Freeport, Wayne, Ohio. (V.L.Abs. by Union National Bank of Fostoria, Ohio) District lio. 5. BEtniTh • Shares Darlington, S. C. (Insolvent) No. 6. ?irst NatiTO-iTal Bank, Sweetwater Tenn. (Insolvent) 41rst akstrict No. 9. °Iatiern Montana Bank, Ennis, Mont. (V.L.Suc. by ..4 liTadison Valley Bank) ''r8t National Bank, Garrison, N. Dak. (V.L.Suc. by Pirst National Bank in Garrison) kat . 17-17—apo. lo. .st ' Tatiana]. Bank, Haxtun, Colo. (V.L.Abs. by Ikriners State Bank) 1)eq114Lrict No. 11. --l ereisa National Bank in Jefferson, Tex. (V.L.Abs. li'ita,. u/r a.efferson State Bank) N ational Bank, Rails, Texas. (Insolvent) ) iational Bank, Frost, Texas. (V.L.Suc. by etti4rost National Bank) .1,Zens National Bank, Saint To, Texas. (V.L.Suc. % '''Y Citizens National Bank in Saint Jo.) 30 27 57 42 42 15 24 60 20 Total 119 897 Assistant Secretary.
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