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135 A meeting of the Federal Reserve Board was held in Washington on Monday, February 6, 1933, at 11:20 a. in. PRESENT: Mr. Mr. Mr. Mr. Mr. Mills, Chairman Meyer, Governor Hamlin Miller Tames Mr. Morrill, Secretary Mr. McClelland, Assistant Secretary Mr. Harrison, Assistant to the Governor. The minutes of the meetings of the Federal Reserve Board with the °Pen Market Policy Conference held on January 4 and 5, 19330 were approved. The minutes of the meetings of the Federal Reserve Board held on Xenuary 6, 17 and 19, 1933, were approved. The minutes of the meeting of the Executive Committee of the Federal Reserve Board held on Tanuary ia, 1933, were approved, and the actions recorded therein were ratified unanimously. The Board then considered and acted upon the following matters: Letter dated February 2, 1933, from the Secretary of the Federal Reserve Bank of New York, era telegram dated February 2, 1933, from the Chairman of the Federal Reserve Bank of San Francisco, both advising that at Imee,tings of their directors on the dates stated no changes were made in the hanks' existing schedules of rates of discount and purchase. Without objection, noted with approval. Memorandum dated January 28, 1933, from Mr. Goldenmeiser, Director Or the Division of Research and Statistics, recommending that the Board grant to Miss Nora V. Elder, an employee of the division who has undergone InaJor operation and is still in the hospital, a leave of absence of thirty UYs from February 1, 1933, in addition to the regular sick leave of thirty ( -2- 2/6/33 days; the recommendation having been approved by four rembers of the Board on February 3, 1933. Approved. Namoraoimm dated February 2, 1933, from Lir. Snead, Chief of the Division of Bank Operations, recommending the appointrent as of February 6, 1933, of Mrs. Gladys L. laillberg as a file clerk and stenographer in the division, with salary at the rate of ca,500 per annum; the recommendation having been approved by four members of the Board on February 4, 1933. Approved. Lieraorendum dated February 3, 1933, frotarai. Paulger, Chief of the Division of Examinations, recomnending approval of a leave of absence of eleven days, in excess of the MAXiMMOI of thirty days which in the absence Of special circumstances might be allowed for sick leave in any one year, On. account of illness for Mr. F. T. Drinnen, Federal Reserve Examiner, who was unable to attend to his official duties from October 22 to December 1, 1932, because of a major operation. Approved. Telegram received under date of January 26 1933, from the Chairman Of the Federal Reserve Bank of Chicago, and circulated among the members of the Board, advising of acceptance by the board of directors, as of J^amuary 25, 1933 of the resignation of Mr. George M. Reynolds as a Class director of the bank, and stating that arrangements are being made for the election of a successor to lir. Reynolds, and that March 6, 1933, has been fixed as the date for the opening of the polls. Noted. 2/6/33 Letter dated February 3, 1933, to Assistant Deputy Governor Netterstram of the Federal Reserve Bank of Chicago, approved by four members of the Board, stating that in accordance with the request contained ta his letter of January 7, 1933, the Board has approved changes in personnel classification Plans of the head office and Detroit branch to Provide for changes in titles of a number of positions at the head office and branch, for a reduction in the salary ranges of three positions and for the discontinuance of two positions at the head office. Approved. Letter dated February 2, 1933, to the Acting Comptroller of the Currency, approved by three members of the Board, stating that in accordance With the recommendation contained in his letter of January 24, 1933, the Federal Reserve Board has approved a salary at the rate of .4,200 per annum for National Bank Examiner Thomas L. Williams, assigned to the Fifth Federal Reserve District. Approved. Telegraphic reply on February 2, 1933, approved by five nembers of the Board, to a telegram of that date fram Deputy Governor Rounds of the '-ederal Reserve Bank of New York requesting authority for an advance in "cordance with the provisions of section 10(b) of the Federal Reserve Act, to the National City Bank, New Rochelle, New York, in the amount of .300,000, for a period of 90 days, with interest at the rate of 5,') per and on the security of miscellaneous mortgages and ineligible un"cured notes with a margin of at least 25:1, Deputy Governor Rounds stating that the bank desires the advance to meet anticipated further withdrawals /88 2/6/33 -4- resulting from the closing of the First National Bank in I:amaroneck, New York. The reply stated that the Board authorizes the advance subject to the terms and conditions recommended. Unanimously approved. Telegraphic reply on February 2, 1933, approved by five members of the Board, to a telegram of that date from. Deputy Governor Rounds of the Federal Reserve Bank of New York requesting authority for a renewal in the reduced amount of ,;65,725, for a period of 90 days from February 3, 193o, With interest at the rate of 5;; per annum, of the advance made by the New York bank in accordance with the provisions of section 10(b) of the Federal Reserve Act, to the Jefferson Trust Company, Hoboken, New jersey, under the authority of the Board's telegrams of Tune 6, September 6 and December 5) 1932, and for a further advance to the trust company in accordance with the provisions of section 10(b) in the amount of .10,000, for a period of 90 days, with interest at the rate of 5 per annum, and on the security of cUstomers' collateral notes with a margin of at least 25; Deputy Governor Rounds stating that the funds are desired to meet continued withdrawals. The reply stated that the Board authorizes the renewal and the additional advance in accordance with the terms and conditions recommended. Unanimously approved. Telegraphic reply on February 4, 193b, approved by five members of the Board to a telegram of that date from Deputy Governor Rounds of the ?ederal Reserve Bank of New York, requesting authority for a further advance, in accordance with the provisions of section 10(b) of the Federal kieserve A t, to the Larchmont National Bank and Trust Company, Larchmont, 2/6/33 -5- New York, in the amount of interest at the rate of 5,:,; 230,000, for a period of ninety days, with per annum; 3130,000 of the advance to be secured by bonds and m15cellaneous customers' secured notes and mortgages in the amount of .170,000, and $100,000 to be secured by the national bank's equity in collateral totaling approximately 3600,000 held by the Federal reserve bank and the Reconstruction Finance Corporation and against Which the latter is also advancing 400,000 to the national bank. The teleram stated that the national bank has been under heavy pressure since the closing of the First rational Bank in Eamaroneck, New York, and the advance is desired to meet that situation. The reply stated that the Board authorizes the advance subject to the terms and conditions recommended. Unanimously approved. Telegraphic reply to a telegran dated February 6, 1933, from Deputy Governor Rounds of the Federal Reserve Bank of New York, requesting authority for an advance, in accordance with the provisions of section 10(b) of the federal Reserve Act as arendeu, to the First National Bank, Narrisville, New York, in the amount of „a0,000, for a period of ninety claYs, with interest at the rate of 5 1,7 per annum, and on the security of ralscellaneeus domastic bonds with a margin of at least 25r); Deputy Governor 110uLds stuting that the advance is desired to net anticipated further Withdrawals of deposits. The reply stated that the Board authorizes the advance subject to the terms and conditions recommended. Unanimously approved. Telegraphic reply on February 1, 1933, approved by five members °r the Board, to telegrams of that date from the Governor of the Federal Reserve Bank of St. Louis requesting authority for an advance in accordance With the provisions of section 10(b) of the Federal Reserve Act, to the Union Trust Company, Little aock, Arkansas, in the amount of .)153,500, for a Period of 30 days, with interest at the rate of 5; per annum, and on the security of miscellaneous unsecured paper, first mortaGe notes, notes secured by stocks and bonds, and notes secured by bills receivable, in the total amount of „)230,253; Governor Martin stating that the bank desires the advance to meet anticipated withdrawals pending completion of arrangements for a loan from the Reconstruction Finance Corporation. The reply stated that the Board authorizes the advance subject to the terms and conditions recommended. Unanimously approved. aeply on February 3, approved by four members of the Board, to a letter dated January 19, 1933, from the Acting Comptroller of the Currency reconnending approval of the application of the Crocker National Bank, Turners Falls, Massachusetts, for permission to reduce its capital stock from .)150,000 to c;75,000 and inmediately thereafter to increase the capital stoCk to j100,000 by the sale of new shares. The reply stated that the Board approves the proposed reduction under the plan submitted, subject to certain conditions set forth in the reply. Approved. aeply on February 3, approved by four members of the Board, to a Memorandum dated January 4, 1933, from the Acting Comptroller of the currency recommending approval of the application of the Capitol National ank and Trust Company, Hartford, Connecticut, for permission to reduce 141 2/6/33 its capital stock from ..600,000 to .30.0,000. The reply stated that the Board approves the reduction subject to certain conditions set forth in the reply. Approved. Reply on February 3, approved by three members of the Board, to a nemorandum dated February 1, 1933, from the Acting Comptroller of the Currency recommending approval of the application of the First National Bank of Gibson City, Illinois, for penuission to reduce its capital stock from ;00,000 to .4;50,000 and immediately thereafter to increase the capital stock to 8O,OOO by the sale of new shares. The reply stated that the Board approves the reduction under the plan submitted subject to certain conditions set forth in the reply. Approved. Telegraphic reply on February 3, approved by four members of the B°ard, to a telegram dated February 2, 1933, from the Federal Reserve AL'ent at Chicago stating that a number of national banks in Iowa are conor are contemplating conversion into State institutions in order to take advantage of a recent State law authorizing the superintendent of banking to take possession of State institutions without insolvency Proceedings; that such banks could not meet the requirements of admission to membership in the Federal Reserve System without undergoing a reorganiza- tian; and that the Federal reserve agent would be glad to have the views of the Board as to the proper procedure in order that he may advise the national banks which are approaching him regarding membership as State institutions. The telegram also stated that the Chicago bank has not con- 142 2/6/33 0- sidered the membership of State menber banks forfeited when they have taken advantage of moratoria of various characters. The reply stated that a State institution resulting from the conversion of a national bank clearly would not succeed to the national bank's membership in the System and the Board feels that each application for membership made on behalf ef such a State institution should be handled in accordance with the Procedure followed in the case of any other State institution applying for Inenbership and should be carefully considered on its merits in strict acecrdancewith the general policy of the .eederal Reserve Board in acting Upon applications of State banks and trust companies for membership. The reply also stated that action on the part of a national bank in changing into a State institution would be voluntary and it would appear that such action would be most likely to be taken, in the circumstances now existing, by institutions whose solvency is questioned by their awn officers and directors. Approved. Replies on February 2, 1933, approved by four members of the Board, to a letter dated January 19, 1933, from the Federal Reserve Agent at Cleveland and two letters dated January 16, 1933, from the Federal Reserve k:ent at St. Louis, reporting, respectively, that the National Bank of John A. Black, Barbourville, Kentucky, the American-First National Bank, Lt. r, -armel, Illinois, and the First National Bank, 1.:ountain Grove, Eissouri, have been continuously deficient in their required reserves during the Period of six months. The replies stated in each case that the Board, in accordance with the agent's recommendation, will take no action in the -1 /I ) 4 2/6/33 -0- matter at this tie other than to forward a copy of his letter to the Acting Comptroller of the Currency for the information of his office. Approved. Letter dated February 2, 1933, to the Federal Reserve Agent at Boston, approved by four members of the Board, referring to the absorption 84 of January 28, 1932, of the Sagamore Trust Company of Lynn, Eassachusetts, by the Security Trust Company of Lynn, and stating, that it is apparent from the information submitted by the Federal reserve agent that the transaction has resulted in no material change in the general character Of the assets of, or in the scope of the functions exercised by, the continuing institution within the meaning of the general condition under which it was admitted to membership in the Federal Reserve System and that the Federal Reserve Board, in accordance with the agent's recommendation, will take no action affecting the membership of the Security Trust Company by reason of the transaction. The letter also suggested that the agent con- Sider the advisability of approachinc, the trust company concerning the re- adiustnent of its capital structure in such manner that a better ratio of capital to deposit liabilities would be shown. Approved. Letter dated February 2, 1933, to the Federal Reserve Agent at Chicago, approved by four mnbers of the Board, replying to Assistant Federal Reserve Agent Young's letter of January 4, 1933, with regard to the unsatisfactory condition of the Jasper County Savings Bank, Newton, I°17L's az; disclosed by the report of examination as of November II, 1932. The reply stated that the Board is in accord with the position taken by 144 -10- 2/6/33 the State banking department and the agent's office that a voluntary contribution equivalent at least to a 100,1) assessment should be made by the Shareholders, and suggested that, if satisfactory corrective action is not taken by the bank within a reasonable time, the agent confer again with the Proper authorities with a view to pressing the 113.tter to a definite con- Approved. Letter dated February 3, 1933, to the Federal Reserve Agent at Ialnsas City, approved by four members of the Board, stating that while it is aPParent from the analysis of report of the credit investigation of the 3Undance State Bank, Sundance, 1.yoming, as of October 19, 1932, that the absorption by that institution of the American State Bank, I,:oorcroft, '4Y°ming, as of January 9, 1932, did not result in any change in the general character of the assets of the Sundance State Bank or in the scope of the corporate powers exercised by it at the tire of its aamission to memberShip in the Federal Reserve System, it is also clear that no improvement has been effected in the highly unsatisfactory condition of the member bank, 17hich condition is due to a great extent to the absorption of the Hulett State Bank, Hulett, Wyoming, as of November 14, 1931. The letter noted the recommendation of the Federal reserve agent, concurred in by the Governor and the executive committee of the Federal Reserve Bank of Kansas 3itY, and stated that in accordance therewith the Board will take no action at this tine affecting the mempership of the institution in the Federal Reserve System, although it is requested that the agent participate in the Ilext examination, and that the Board be currently advised of any iavrove- 145 -11- 2/6/33 tent effected in the condition of the institution. The letter also re- quested additional infonnation with regard to the unsatisfactory reserve record of the member bank. Approved. Letter dated February 4, 1933, to the Tederal Reserve Agent at Dallas, approved by four members of the Board, referring to the analysis Of report of a credit investigation of the 2irst State Bank, Kirkland, Texas, as of December 27, 1932, frcea which it is noted that after having advised that the interest rate being paid on funds deposited by directors and officers as a guarantee against actual and potential losses in its assets had been reduced to 4c71 in accordance with the position taken by the Board in its letter of Larch 24, 1932, the bank has apparently restored the rate of interest to 8;'; the letter suggesting that the agent again convey to the institution the attitude of the Board in the matter and suggest that it should reduce the interest paid at least to the rate agreed upon. Approved. Letter dated 7ebruary 3, 1933, approved by four merbers of the Board, to Kr. Rudolph E. Reichert, Commissioner of Banking of the State of inclosing a copy of a letter dated January 10, 1933, from the Cashier or the 7irst rational Bank of Lapeer, Eichigan, requestinT, that the Board furnish him with a letter showin-; the trust powers which it has granted to the bank in order that the bank may obtain a return of the aecurities which it has deposited with the Treasurer of the State of laehigan in connection with the operation of its trust department. The Board's letter stated that it is understood that while trust companies are 14 —u -12- 2/6/33 required by the laws of :iichir:an to deposit securities with the State Treasurer, State banks exercising trust pmers are not subject to this or a similar requirement, which raises the question whether a national bank exercising trust powers in the State of Eichi an is required to deposit securities with the State Treasurer. The letter also stated that in connection with a similar situation which arose in 1927, in the State of 'lleconsin, the Board took the position that the provisions of section 11(k) required a national bank to deposit securities with State authorities only When State law imposed this requirement on all corporations acting in a fiduciary capacity, and that the nation) bank was not required to make such a deposit when merely one class of State corporationswas required to do so; that it i felt that the Board should furnish the cashier of the First 1Tationa1 Bank of Lapeer with the letter he has requested; but that before communicating with him it will be appreciated if the Commissioner of Banking °f the State of 1.1ichigan will give the Board an expression of his views with reference to the matter. Approved. In connection with the above there was also presented a letter dated February 3, 1933, approved by four members of the Board, to Mr. '1 • 41uaustyn, President of the Marine National Exchange Bank, Milwaukee, ;71sconsin, referrin, to the Boardts letter of April 12, 1927, addressed to Augustyn as Vice President of the National Exchange Bank of Milwaukee, in which he was advised of the Board's opinion that a national bank which had received nermission to exercise trust Dowers was not required to cleposit securities with the Treasurer of the State of disconsin before it 117 2/6/33 -13- could exercise such powers in that State. The letter stated that it is assumed that in accordance with the opinion expressed by the Board, the National Exchange Bank did not deposit securities with the Wisconsin State Treasurer in connection with the operation of its trust department, and that the Larine National Exchange Bank, which institution resulted from the consolidation of the National Exchange Bank and another national bank in I-ilwaukee, has likewise refrained from depositing securities with the State Treasurer; and that it will be appreciated if he will advise whether the allthorities of the State of Wisconsin have ever questioned the right of either the National Exchange Bank or the consolidated institution to exercise trust powers without depositing securities with the State Treasurer and if so what disposition was finally made of the matter. Approved. Telegraphic reply on February 3, approved by four meirbers of the Board, to a telegram dated Tanuary 23, 1933, from Assistant Federal Reserve Agent Sargent at San Francisco, inquiring whether the Provisions of Regulation 3 which permit uninvested funds of the trust department of a national bank to be deposited in the commercial or savings department provided the bank first delivers to the trust department certain collateral securities, applies if trust funds are deposited with an affiliated State bank in which stock.holders of the trustee bank awn 55,"; of the stock. The reply stated that the provisions of law and Regulation F requiring deposit of securities with the trust department of a national bank when trust t4nds are deposited in the commercial or savings department or otherwise 4sed in the conduct of the bank's business, are not applicable if the funds 2/6/33 -14- are deposited in another bank to the credit of the fiduciary bank in its capacity as trustee or other fiduciary, but are applicable if such funds are deposited in another bank to the credit of the fiduciary bank in its own right. The reply also stated that the Board has heretofore taken the position that national banks should not invest trust funds in securities Of affiliated corporations and it would seam equally improper for a national bank in its capacity as trustee to deposit trust funds in institutions closely affiliated with the bank through common stock ownership. Approved. Letter to Messrs. Shearman and Sterling, New York City, New York, attorneys for the National City Bank, referring to their letters of January 5 and 17, 1933, advising that unexpected and complicated questions have arisen in connection with the establishment of a branch of the National City Bank in Geneva, Switzerland, Which have required careful investigation, and requesting an extension for a further ninety days of the period within which the branch at Geneva may be opened under the authority of the Board's order of April 29, 1932. The Board's letter stated that the Board has extended until April 27, 1933, the period within Which the National City Bank may establish the proposed branch, and inclosed a certified copy of the following order of the Federal Reserve Board granting the extension: wMOIREAS, the Federal Reserve Board, by an order adopted at a meeting held on the 29th day of April, 1932, authorized the National City Bank of New York, in accordance with the provisions of Section 25 of the Federal Re- tz-19 -15- 2/6/33 "serve Act, to establish a branch in the City of Geneva, Republic of Switzerland, upon condition that the authority thereby granted be exercised and that said branch be actually established and opened for business on or before October 29, 1932: "WHEREAS, the Federal Reserve Board, by an order adopted at a neetin„; held on the 11th day of October, 1932, amended the said order of April 29, 1932, so as to extend until Tanuary 27, 1953 the period within which the authority there,by granted might be exercised and the said branch might be actually established and opened for business; "WHEREAS, it now appears desirable that the period within which the said branch may be established under the authority conferred by said order of April 29, 1932, as amended, should be further extended; "NOW, THEREFORE, it is ordered that the said order adopted by the Federal Reserve Board on April 29, 1932, as amended by the said order adopted on October 11, 1932, be, and it hereby is, 2urther qualified and amended so as to provide that unless the authority thereby granted is exercised and the proposed branch in the City of Geneva, Republic of Switzerland, actually is established and opened for business on or before April 27, 1933, all rights granted by said order shall be deemed to have been abandoned and the authority thereby granted shall automatically terminate; but if said branch shall be established and opened for business on or before April 27, 1933, the said National City Bank of New York may operate and maintain the same, subject to the provisions of Section 25 of the Federal Reserve Act." The letter also requested that the Board be advised as to the progress which is being, made in the solution of the difficulties which have arisen and as to the nature of the questions referred to in the attorneys' letter of J'anuary 17, 1933. Approved. Letter dated February 1, 1933, to the Federal reserve agents at all Federal reserve banks, approved by three melrbers of the Board, inclosing a copy of revised form B-5, send-annual sumrztry report of deficiencies in 2/6/33 -16- reserves of member banks for use beginning with 1933, in place of the quarterly report previously submitted on the old form 33-5. The letter stated that all Federal reserve barks which formerly assessed progressive Penalties for deficiencies in reserves have now discontinued that -practice and that the Federal reserve banks are authorized to discontinue the preparation of the lists that accompanied the old form of quarterly report Showing member banks that would have been subject to a maximum progressive Penalty of 10-,0 if progressive penalties had been assessed, copies of which were sent to the Comptroller of the Currency and to the Chief National Bank Examiner in the case of national banks and to State banking departments in the case of State member banks. II ii The letter also stated tint the Board desires the agents to continue to watch closely the reserve records of Metter banks, to consult with the chief national bank examiner and the State authorities, and to furnish full information to the Board regarding reserve deficiencies which continue over a period of six consecutive )11onths, in accordance with the Board's letters of Tune 2, 1932 (X-7171), and November 22, 1932 (X-7295). Approved. Reply on February 4, 1933, approved by four members of the Board, to a letter dated January 25, 1933, from the Chairman of the Federal Reserve Bank of Philadelphia advising, in accordance with the request conte.ined in the Board's letter of January 11, 1933, of the action which has been taken to meet the comments and recommendations of the Board's examiners, referred to in the report of examination of the bank as of October 15) 1932. The reply stated that the chairman's letter appears to cover 151 2/6/33 -17- fully the several matters referred to in the Board's letter and that the attention which has been given by the bank to the comments and sur_v,estions Of the Board's examiners is appreciated. Approved. Memorandum dated January 10, 1933, from Mr. Vest, Assistant Counsel, reco=onding that there be published in the next issue of the Federal 20serve Bulletin, in a statement in the form attached to the memorandum, the Board's recent ruling with reference to the eligibility for rediscount of notes given in payment 2or premiums for insurance by persons, firms or corporations engaged in the production, manufacture or distribution of G°0ds; the recommendation having been approved by four members of the Board on February 2, 1933. Approved. Telegram dated February 4, 1933, to the hairmen and Governors of all Federal reserve banks, approved by four members of the Board, advising that the provisions of sections 2 and 3 of the Glass-Steagall Act have been extended until March 3, 1934, by an act signed by the President on February 3, 1936, and that consequently the authority heretofore granted by the Board to each Federal reserve bank to offer, and the Federal reserve agent at each bank to accept, as collateral security for Federal reserve 40te3 direct obligations of the United States, in the circumstances and under the conditions outlined in the Board's letter of of May 2, 1932, Will not terminate on I:arch 3, 1935. Approved. 2/6/3S -18Telegraphic reply on February 4, 1,X53, approved by four members Of the Board, to a teleram of that date from the Federal Reserve Agent at Philadelphia, advising that certain local banks have advanced 42,000,000 to assist the Integrity Trust Company of Philadelphia and in order to assure the public that this aid will be continued, the banks feel that five recognized leading bankers should be placed on the board of directors of the trust company; that of those proposed, Er. Evan Randolph is a director and vice president of the Philadelphia rational Bank; LT. Howard Loeb is Chairman and a director of the Tradesmens National Bank and Trust Company; and Er. William F. Gest is Chairman of the Fidelity-Philadelphia Trust Company and a director of the First National Bank of Philadelphia, and that before making public announcement of these appointments the banks would like to ascertain whether the Federal Reserve Board would approve the service of the men referred to on the board of directors of the Integrity Trust Company. The agent's telegram also stated that the Federal Reserve Board can be assured that there is practically no competition between the inztitutions and that their service to the trust company will be entirely compatible with the public interest and of great service to the community. The reply stated that, in view of the special circumstances outlined in the agent's telegram, the Board will approve the applicationsof the three bankers named for permission to serve as directors of the trust company Under the Clayton Act provided they are not serving more than two other bank.s within the prohibited classes. Approved, with formal applications the above mentioned the permits are not the understanding that when are received and permits issued, applicants will be advised that regarded as permanent authoriza- 0 153 2/6/33 -19tions but as temporary authority, to continue during the period of the unusual circumstances in connection with which they are being issued. Letter dated February 2, 1933, to the Federal Reserve Agent at Philadelphia, approved by four members of the Board, stating that on the basis of the information submitted the Federal Reserve Board does not feel justified in approving the application of la.. George Stuart Patterson for Permission to serve at the same time as a manager of the Girard Trust Comaany, Philadelphia, Pennsylvania, as a director of the Bank of the Manhattan Company, New York City, and as a director of the Central-Penn National Bank of Philadelphia, Pennsylvania, since it appears that the two institutions in Philadelphia are in competition as to a substantial portion Of their business. The letter also stated that before taking final action on the application, however, the Board will afford the applicant an oPPOrtunity to submit any additional facts or arguments which he may wish to have considered tending to show that the Board may properly issue the Permit applied for, provided he notifies the agent of his intention to do so not later thnn thirty days from February 2, 1933. Approved. Letter dated February 2, 1933, to Assistant Federal Reserve Agent Bailey at Minneapolis, approved by three members of the Board, stating that the Board has under consideration the application of Mr. Tohn S. Dutton ror permission to serve at the samo tire as an officer of the Bank of Arnerica National Trust and Savings Association, San Francisco, California, as an officer of the Bank of America, San Francisco, California, and as a director of the First National Bank of Butte, Lnntana, and that while the -20- 2/6/33 aPplication was submitted with the favorable reconrendations of the Federal Reserve Agent at San Francisco and Er. Bailey it is requested, because of the information contained in the report of examination of the First National Bank of Butte as of October 20, 1032, that the matter be reviewed, as there may be other factors which should be considered in determining whether or not it would be incompatible with the public interest to grant the permit applied for, even though it appears that the institutions involved are not in substantial competition. Approved. Letter dated February 3, 1933, to the Federal Reserve Agent at Dallas, approved by four members of the Board, stating that the information thus far submitted in connection with the application of Er. Pat L. Davis for Permission to serve at the same tire as director of the State National Bank and as director of the San Tacinto Trust Company, both of Houston, Texas, deals Primarily with the question whether competition exists between those institutions, but includes virtually no information having a bearing on the question whether an interlocking directorate between the banks might tend to reduce competition, or with regard to other factors referred to in the Board's letter which might have a bearing on the question Whether the granting of the ?emit would be in the public interest, and that before reaching a decision upon the application the Board would appreciate advice from the agent as to any matters which in his judgment might be relevant to the question to be decided in the event he feels there are any such matters which have not already been brought to the attention of the Board. 155 (0 2/6/33 -21Approved. At this point Hr. Wyatt, General Counsel, and Hr. Chase, Assistant Counsel, joined the meeting. Consideration was given to a memorandum addressed to the Board by % Viyatt under date of December 29, 1932, and circulated among the members of the Board, with regard to the folluwing Clayton Act applications for permission to serve the banking institutions shown: Arthur C. Dorrance C.. J Ingersoll William ',T. Bodine Philadelphia National Bank, Philadelphia, Pennsylvania, Girard Trust Company, Philadelphia, Pennsylvania, Guaranty Trust Company, New York city, New York. ' Girard Trust Company, Philadelphia, Pennsylvania, Central-Penn National Bank of Philadelphia, Pennsylvania. First National Bank, Philadelphia, Pennsylvania, Provident Trust Company of Philadelphia, Pennsylvania. The memorandum recommended that the Board advise the applicants, throujil the Federal Reserve Agent at Philadelphia, that it cannot see its waY clear to grant the applications on the basis of the information sublaitted, but is willing to consider any additional information or argunents Which the applicants may desire to submit tending to show that the approval of the applications would not be incompatible with the public interest. After discussion, it was decided to advise the Federal reserve agent that the information be:ore the Board is not sufficient to enable it to readh a final decision, and to request him to submit additional information with regard to certain matters involved in the applications. 2/6/33 -22Reports of Standing Cannittee dated February 1, 1933, recommending aPProval of the following changes in stock at Federal reserve banks: 422219AILsms for SURMNDER of Stock: District No. 1. National City Bank, Chelsea, Massachusetts. (Decrease in surplus) Merrimack National Bank, Haverhill, Mass. (Decrease in surplus) District No. 2. Evans National Bank, Angola, New York. (Decrease in surplus) Chemical Bank & Trust Company, New York, IT. Y. (Decrease in capital) Shares 39 24 63 30 600 630 District No. 4. First National Bank, Chester, Vt. Va. (Insolvent) 84 84 District No. 5. Citizens National Bank, Gastonia, North Carolina. (Decrease in surplus) 90 90 District No. 7. First National Bank, Geneva, Illinois. (Decrease in surplus) First National Bank, Yale, Michigan. (Insolvent) 15 24 District No. 8. First NEttional Bank, Anna, Illinois. (Insolvent) First National Bank, Greenfield, Illinois. (Insolvent) First National Bank, Herrin, Illinois . (Insolvent) The National Bank, Witt Illinois (V.L .Suc. by , . Security National Bank of Witt) 39 60 40 90 36 226 No. 9. First Natia). Bank, Ortonville, Minnesota. (Insolvent) 39 39 District No. 10. Pirst Nationni, Bank, Fowler, Kansas. (Insolvent) 30 30 District No. 11. Ouachita National Bank, Monroe, Louisiana. (V.L. Sue. by Ouachita National Bank in Monroe) First National Bank, Rock.springs, Texas. (Insolvent) 540 30 570 157 2/6/33 -23- ....k121.1pations for SURRENDER of Stock: (Cont'd) District No. 12. First National Bank, Sonora, California. (V.L.Abs. by the Tuolumne County Bank of Sonora, Calif., nonmenber) Arlington National Bank, Arlington, Oregon. (Insolvent) Shares 174 36 Total 210 1,981 Approved. Reports of Standing Committee dated January 31, 1933, recommending approval of the following Clayton Act applications: La.. B. L. Edwards, for permission to serve at the sane tine as director of the Lbrchants and 2armers National Bank of Charlotte, North Carolina, as director and officer of the South Carolina National Bank of Charleston, South Carolina, and as director and officer of the South Carolina State Bank of Charleston, South Carolina. Mr. A. E. Macdonald, for permission to serve at the sane time as officer of the Hamilton National Bank of Chattanooga, Tennessee, and as director of the first National Bank of South Pittsburg, Tennessee. Er. Harry R. McIntosh, for permission to serve at the sane time as officer of the Worcester Bank and Trust Company Of Worcester, Massachusetts, as of2icer of the Worcester County National BmIk of Worcester, Massachusetts, and as director of the Second National Bank of Barre, Massachusetts. Approved. Thereupon the meeting adjourned. \QV- 4 11 15Di_ APPrOVed: Chairman. K Secreta .
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