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110 A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Friday, February 6, 1931, at 10:20 a. m. PRESENT: Governor Meyer Mr. Hamlin Mr. Miller Mr. Tames Mr. Pole Mr. McClelland, Assistant Secretary. The Assistant Secretary presented various mattvs of business which were considered by the Board, and acted upon as follows: Matters Informally approved by the Executive Conmittee on january 31st and February 4th, namely, applications of the Farmers National Bank, 14°rwaY, S. C., for the surrender of 21 shares of.stodk in the Federal Reserve Bank of Richmond, and of the Lincoln National Bank and Trust Company, Lincoln, Nebraska, for surrender of 144 shares of stock in the Federal Reserve Bank of Kansas City. Formally approved. Matter approved on initials on January 31st, namely, application of the Citizens State Bank, Jamestown, Indiana, for membership in the Federal Reserve System and for 30 shares of stock in the Federal Reserve Bank of Waicago; approval having been given subject to the regular conditions of rasnbership set out in Regulation wilt'. Formally approved. Letter to the Chairman of the Open. I,arket Policy Conference, 4PProved on initials on January 30, advising that the Board has considered the report submitted by the Conference; has also taken into consideration the discussion which followed its presentation at the joint meeting of the eclarerence and the Board on January 21st, and in the light of that discussion, he's Voted to approve the report with one amendment of which the Board was lIclIfieed by the Chairman of the Conference subsequent to the joint meeting. Formally approved. 4 2/6/31 -2Letter to the Federal Reserve Agent of the Federal Reserve Bank of Philadelphia, approved on initials on January 30th, replying to his letter Of January 5th, and advising that the Board has no objection to his proceeding with the preliminary steps necessary for the preparation of an exhibit for display at the forthcoming convention of the American Bankers Association; the letter also suggesting that it might be beneficial if the Committee which is to be appointed by the Board for the purpose of arranging an exhibit to be made at the Chicago aorld Fair in 1933, were to cooperate with the Agent's staff in the Preparation of the material for the American Bankers Association's exhibit. Formally approved. Report of Committee on Salaries and Expenditures, approved on initials on February 3rd, on letter dated January 22nd from the Deputy Governor of the Federal Reserve Bank of Minneapolis, submitting certain changes in the personnel classification plan of that bank; the Board's Colmmittee recommending approval of the changes. Formally approved. Letter dated January 26th from the Chairman of the Federal Reserve Bank of Dallas, advising of the establishment on that date of the following schedule of buying rates on bankers' acceptances: 1. to 45 days 46 to 120 days 121 to ISO days Repurchase 1 1/2% 1 5/86 2% 1 5/86 Without objection, noted with approval. Letters dated January 29th and February 5th from the Secretary of the Federal Reserve Bank of New York, and telegrams dated February 4th *om the Chairman of the Federal Reserve Bank of Philadelphia, February 2/6/31 -3_ 4th from the Chairman of the Federal Reserve Bank of St. Louis, and February 5th from the Chairman of the Federal Reserve Bank of San Francisco, all advising that at meetings of their boards of directors on the dates stated, 110 changes were made in the banks' existing schedules of rates of discount and purchase. Without objection, noted with approval. Telegram dated February 3rd from Deputy Governor Kenzel of the Pederal Reserve Bank of New York, advising that because of the development Of a demand in excess of the supply of new bills, dealers on that date reduced their bid and asked rates 1/8% on acceptances of all maturities; no eh4lIge being made in the existing schedule of buying rates at the New York bank. Noted. Telegram dated February 5th from the Chairman of the Federal Reserve 81113k of Richmond, advising that at the meeting of his board of directors ou that date, no change was made in the bank's existing schedule of rates Or discount and purchase; also, that the bank, for the present, will not liezticipate in further purchases of bills made by the Open Market Policy Conference. Without objection, noted with approval. Telegram dated February 2nd from the Chairman of the Federal Reserve tavo. 444 ill of St. Louis and letter of the same date from the Board's Examiner Charge, advising that in accordance with the suggestion contained in the Board's letters of January 29th, an appointment has been made for a "4rerence at Little Rock on Tuesday, February 3rd, with State and Federal 113 2/6/31 Attorneys and officials of the Little Rock Branch with regard to the Proposed investigation of the events leading 111) to the failure of the AZerican Exchange Trust Company of Little Rock; the Agent's telegram stating that the Board will be fully advised upon his return to St. Louis. Noted. lemorandnm from Counsel dated January 29th, with regard to a report of the Division of Examination that a recent examination of the Depositors State Bank of Chicago, a member bank, indicates that the bank 18 affiliated with the Depositors Securities Company, and that the latter is °4rrYina in its assets 54 shares of the stock of the member bank; the memoZandum submitting draft of a letter to the Federal Reserve Agent at Chicago ' leqUesting additional information on the matter so that the Board may deterwhether the holding of the stock of the member bank by its affiliate 18 it violation of Section 9 of the Federal Reserve Act. Upon recommendation of the Law Committee, the proposed letter was approved. Draft of reply, approved by the Committee on District No. 11, to letter dated February 2nd from the Federal Reserve Agent at Dallas, with rtIrther reference to the reserve record of the Athens National Banl: Athens, ItelIe; the proposed reply advising that although a copy of the Agent's letter is being forwarded to the Comptroller of the Currency for his infor414tiet, the Board will take no action at this time, pending receipt of 4(lyiee as to results accomplished through the action of the Chief National 44k Examiner, who has instructed one of his men to proceed to Athens and °Illrene the board of directors of the bank with a view of ascertaining why ite reserve has not been restored and to make a special examination of the 14k4k if deemed advisable. 2/6/31 Upon motion, the proposed letter was approved. Memorandum from Counsel dated January 29th, approved by the Law Committee, submitting draft of a reply, for the signature of the Secretary of the Treasury, to a letter received by him from Senator Sheppard, enclosing 4 suggestion from one of his constituents that the principal and interest on State, County and City bonds be made payable at the Federal Reserve bank of the district in which the bonds are issued; the proposed letter advising, for reasons stated, that the Federal Reserve Board and the Treasury Department do not favor the proposal. Upon motion, the proposed letter was approved. The Assistant Secretary then called attention to the fact that the last report of examination of the Federal Reserve Bank of Atlanta contains 4 statement of certain actions on the part of the President of the Inter- state Trust and Banking Company, New Orleans, Louisiana, disclosed by an °lamination of the institution on August 30, 1930, which may involve violations of Section 9 of the Federal Reserve Act. Be stated that this 1114tter has not been reported to the Board by the Federal Reserve Agent at 4t1anta, either through an analysis of the report of examination of the b4nk or by letter, and inquired whether in view of conditions in New (*leans, the Board desired to take any action or to request further infrom the Federal Reserve Agent at Atlanta. After SOMB discussion, during which it was the consensus of opinion that no action should be taken at this time, it was voted to suspense the matter for a period of three months. Mr. Miller then reported that he yesterday discussed over the • 2/6/31 telephone with the Federal Reserve Agent of the Federal Reserve Bank of Chicago the present banking situation in that city, and in response to his inquiry, ir. Stevens had stated that he is in close touch with the banks and the situation generally in Chicago and feels the Federal Reserve bank is prepared to deal with any emergency that might arise, and that he believes, in so far as the immediate outlook is concerned, the banking situation is very much improved. The minutes of the meeting of the Executive Committee of the Pederal Reserve Board with the Open Earket Policy Conference held on siantlary 21st, having been read by the individual members of the Board, as amended, were approved. The minutes of the meeting of the Federal Reserve Board held on J'anuary 29th, having been read by the individual members of the Board, were approved. ...122RTS OF STANDING COMMITTEMS: Dated, January 31st February 3rd 4th 5th 6th Recommending changes in stock at Federal Reserve banks, as set forth in the Auxiliary Minute Book of this date. Recommendations approved, Dated, February 4th Recommending action on an application for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Recommendation approved. Recommending action on an application for aamission of a state bank, subject to the conditions stated In the individual reports attached to the application, as set forth in the Auxiliary Minute Book of this date. Recommendation approved. Recommending approval of the application of Er. Carl R. Gray, for permission to serve at the same time as a director of the First National Bank of Chicago, Ill., and as a director of the Omaha National Bank of Omaha, Nebraska. Approved. Dated, February 4th Dated, January 29th —7— 2/6/31 REPORTS OF STANDING COT JETTthiLS: Dated, January 29th bated, January 29th Dated, January 29th bated, January 29th Dated, January 31st Dated; January 31st 1°4ted, January 31st 13ated, January 31st Recommending approval of the application of Yr. O.L. Biedenharn, for Permission to serve at the same time as a director and officer of the First National Bank of Shreveport, La., and as. a director of the State National Bank, Texarkana, Ark. koproved. RdcOmmending approval of the application of LI.: T. Thomas Kelley, Jr., for permission to serve at the same time as a director of the National Metropolitan Bank of Washington, D. C., and as a director of the Montgomery County National Bank, Rockville, Ed. Approved. Recommending approval of the application of Er. Charles B. Hawley, for permission to serve at the same time as a director of the National Metropolitan Bank of Washington, D. C., and as a director of the Munsey Trust Company of Washington, D. C. Approved. Recommending approval of the apnlication of Mr. George W. White, for permission to serve at the same time as a director of the National Metropolitan Bank of Washington, D. C., and as a director of the :-ark Savings Bank of Washington, D. C. Approved. Recommending approval of the application of Mr. Robert Barbour, for Permission to serve at the same time as a director of the First National Bank of Paterson, N. J., as a director and officer of the Hamilton Trust Company of Paterson, N. T., and as a director of the Paterson Savings institution of Paterson, N. J. Approved. Recommending approval of the application of Er. Garrett A. Hobart, for permission to serve at the same as a director of the First National Bank of Paterson, N. X., and as a director arid officer of the Paterson Savings Institution of Paterson, N. I. Approved. Recommending approval of the application of Mr. Charles L. Auger, for permission to serve at the same time as a director of the First National Bank of Paterson, N. J., as a director of the Hamilton Trust Company of Paterson, N. J., and as a director of the Paterson Savings Institution of Paterson, N. X. Approved. Recommending approval of the application of Er. Victor H. Eunnecke, for permission to serve at the same time as a director of the Washington Park National Bank of Chicago, Ill., and as a director of the Beverly State Savings Bank of Chicago, Ill. Approved. 2/6/31 -8- REPORTS OF STANDING COMITMES: Dated, Tanuary 31st Dated, February 3rd Dated, February 4th Dated, February 4th Dated, February 4th 1) ted, February 4th 1)ated, February 4th bated, February 4th Recommending approval of the application of Kr. Robert H. Maven, for permission to serve at the same tire as a director and officer of the Ogdensburg Trust Company of Ogdensburg, N. Y., as a director of the First National Bank of Jinthrop, N. Y., and as a director of the Frontier National Bank of Liorristown, N. Y. Approved. Recomending approval of the application of Li*. Wade H. Cooper, for permission to serve at the same time as a director and officer of the Commercial National Bank of Washington, D. C., and as a director and officer of the U. S. Savings Bank of Washington, D. C. Approved. Recommending approval of the application of L. Ralph Budd, for Permission to serve at the same time as a director of the Northwestern National Bark of Ninneapolis, Finn., and as a director of the First National Bank of St. _caul, Einnesota. Approved. Recommending anProval of the application of Mr. Charles Donnelly, for permission to serve at the same time as a director of the First National Bank of St. Paul, Linn., and as a director of the Northwestern National Bank, Minneapolis, Approved. Recommending approval of the application of Nr. Tames F. Bell, for permission to serve at the same time as a director of the First National Bank of St. Paul, Minn., and as a director of the Northwestern National Bank of Minneapolis, Minnesota. Approved. Recommending approval of the application of Ma-. Henry A. Scandrett, for permission to serve at the same time as a director of the First National Bank of St. Paul, Minn., as a director of the Northwestern National Bank of Ninneapolis, 'Ann., and as a director of the Continental Illinois Bank CGTrust Co., of Chicago, Ill. Approved. Recommending approval of the application of la'. U. P. Delander, for permission to serve at the same time as a director of the First National Bank of St. Paul, Finn., and as a director of the First State Bank of St. Paul, Finn. Approved. Recommending approval of the application of Mr. A. A. LeDonell, for permission to serve at the sane time as a director of the 'First National Bank of St. Paul, Minn., and as a director and officer of the Lumbermans National Bank of Chippewa Falls, A.s. Approved. 18 2/6/31 -9- IMPORTS OF STANDING COIELITTEES: Recommending approval of the application of U. Frank Schlick, for permissioil to serve at the same time as a director of the First National Bank of St. Paul, hann., as a director of the State Savings Bank, St. Paul, IL:inn., and as a director of the Grand Avenue State Bank, St. Paul, Linn. Approved. Dated, February 4th Recommending approval of the application of Las. R. -t;'. Lindeke, for permission to serve at the same tine as an officer of the First National Bank of St. Paul, :inn., as a director of the Farmers & Merchants State Bank of St. Paul, Minn., and as a director and officer of the First Veterans State Bank of St. Paul, Dated, February 4th Dated, February 4th Dated, February 5th Approved. Recommending approval of the application of rx. William N. Pope, for permission to serve as a director and officer of the First Trust & Deposit Co:, Syracuse, N. Y., as a director and officer of the North Syracuse National Bank of North Syracuse, N. Y., and as a director of the First National Bank of Canastota, N. Y. Approved. Recommending approval of the application of .1.r. Louis H. Gathoefer, for Permission to serve at the same time as a director of the First National Bank of Nilkinsburg, Penna., and as a director of the PeoplesPittsburgh Trust Co; Pittsburgh, Pa. 'Approved. The meeting adjourned at 11:20 a. m. Assistant Secretary 4PProved: AUXILIARY MINUTES (February 6, 1931.) Reports of Standing Committee dated January 31st, February 3rd, 4th, 5th, and 6th, recommending changes in stock at Federal Reserve Banks, aPProved as follows: AD.plication for ORIGINAL Stock: District No. 11. P1st National Bank in Hemphill,Texas. Shares 18 18 3 15 15 1 3 1 3 41 7 2 1 6 3 15 3 1 5 15 6 30 94 District No. 4' 1.°131e Nat e Uounty National Bank, Caldwell, Ohio. 3 Bank of Defiance, Defiance, Ohio. 1 st National Bank & Trust Co., Findlay, Ohio. 60 x°mMercial National Bank, Tiffin, Ohio. 15 pl.iti onal Bank of Adams County, Jest Union, Ohio. 1 1,1rst National Bank, Albion, Pa. 3 ',:!tional Bank of Corry, Pa. 15 ;Irst National Bank, Fryburg, Pa. 3 1,tl ori County National Bank, Edenburg, (Knox, P.O.) Pa. 15 ar1 pifIlaseus National Bank, Parnassus, Pa. 15 National Bank, Aeynoldsville, Pa. 45 414-e 2an Trust & Savings Bank, Middletown, Ohio. 3 pe 'Ya Banking Company, Minerva, Ohio. 3 pni?Ples-Pittsburgh Trust Co., Pittsburgh, Pa. 82 r Title & Trust Co., Pittsburgh, Pa. 30 294 AXIlication for ADDITIONAL Stock: D istrict No. 1. National Bank of New England, East Haddam, Conn. First National Bank, Middletown, Conn. Zlomaston National Bank, Thomaston, Maine. 1,ank 3 of Commerce & Trust Co., Boston, Mass. "aY Trust Company, Boston, Mass. Peoples National Bank, Southbridge, Mass. Wclfeboro National Bank, Wolfeboro, N. H. District No. 2. liorth Arlington National Bank, North Arlington, N.J. Pirst National Bank, Fairview, N. J. l'Irst National Bank, Brewsters, N. Y. First National Bank, Glen Head, N. Y. Lackawanna National Bank, Lackawanna, N. Y. st National Bank, North Tarrytown, N. Y. aranac Take National Bank, Saranac Lake, N. Y. 4:ottenvi1le National Bank, Tottenville, E. Y. li°chelle Park Bank, Aochelle Park, N. J. :',1113ton Trust Company, Kingston, N. Y. ;he American Bank, Lackawanna, N. Y. Nassau County Trust Co., Mineola, N. Y. 1 -2-2/6/31 haplications for ADDITIONAL Stock: Cont'd District No. 7. First National Bank, Lake Forest, Ill. The National Bank, Niles Center, Ill. First National Bank, Gladbrook, Iowa. Citizens National Bank, Stevens Point, Wisc. District No. 8. Planters National Bank, Hughes, Ark. First National Bank, Duquoin, Ill. Tell City National Bank, Tell City, Ind. First National Bank, Louisville, Ky. First National Bank, Memphis, Tenn. ) i 90 6 3 6 105 2 60 6 300 30 Total 398 932 -P-•licill_or SURBENDER of Stock: -4 District No. 2. Le AeY National Bank, Le Roy, N. Y. (V.L.Abs. by the Bank of Le Aoy, N. Utica Trust & Deposit Company, Utica, N. Y. (Decrease In capital and surplus) 420 564 District No. 6. First National Bank, Carrollton, Ga. (V.L.Abs. by Peoples Bank of Carrollton) 120 120 District No. 7. irat National Bank, Cambridge, Ill. (V.L.Abs. by li Farmers National Bank of Cambridge) °rth-destern Trust & Savings Bank, Chicago, Ill. pi (Decrease in capital) :Irat National Bank, Connersville, Ind. (Insolvent) Continental National Bank; Indianapolis, Ind. (V.L.Abs. by Indiana National Bank of Indianapolis) Diatrict No. 8. ;lanters National Bank, Walnut Ridge,Ak. (Insolvent) virat National Bank, Holly Grove, Ark. (Insolvent) irat National Bank, Green Forest, Ark. (Insolvent) il Shares District No. 9. .et National Bank, Manistique, Ilich. (V.L.Abs. by p4 First National Bank in Manistique) w4rat National Bank, Tyler, Minn. (Insolvent) elclome National Bank, Welcome, Minn. (V.L.Abs. by 1?4 qelcome State Bank, Welcome, Minn.) 'rat National Bank, Walhalla, N. Dak. (Insolvent) 144 90 150 137 300 677 18 18 23 59 72 45 36 17 • 170 2/6/31 olk w A -3Shares cations for SURRENDE2 of Stock: (Cont,d) District No. 11. Parmers & Merchants National Bank, Grandview, Tex. (V.L.Abs. by First National Bank of Grandview) Pirst National Bank, Ladonia, Tex. (Insolvent) ?ecan Gap National Bank, Pecan Gap, Tex. (Insolvent) State National Bank, Santa Anna, Tex. (V.L.Abs. by Pirst National Bank of Santa Anna) awaneon National Bank, Swenson, Tex. (V.L.Abs. by First National Bank of Aspermont, Tex., National Bank of Jeyron, Tex., and Peacock Bank of Peacock, Tex.) 39 69 18 . 38 185 21 District No. 12. Xotherlode National Bank, Sonora, Calif. (V.L.Abs. IV Bank of America, Los Angeles, Calif.) 38 1,813 38 Total 0 , Report of Standing Committee dated February 4th, recommending action ' 4 application for fiduciary powers by the following bank: DISTIUCT NO. 12. IDAHO: American National Bank of Idaho Falls. (3336) 0 , Report of Standing Committee dated February 4th, recommending action t7 aPPlication for admission to membership by the following state institu4°49 subject to the conditions stated in the report attached to the application: Shares Name The Bank of Romney, Romney, W. Va. ob/ IIPProv d: 111 F.A.Bank Richmond Assistant Secretary.
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