The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
84 A meeting of the Executive Committee of the Federal Reserve Board was held in the office of the Federal Reserve Board on Tuesday, January 13th, at 11:15 a. m. PRESENT: PRESENT ALSO: Governor Meyer Mr. Hamlin Mr. Miller Mr.. Tames Mr. McClelland, Assistant Secretary. Mr. W. H. Fletcher, Assistant Federal Reserve Agent of the Federal Reserve Bank of Cleveland. Mr. Fletcher discussed with the Board the condition of the Merchants State Bank, New Philadelphia, Ohio, which was considered by his Executive Committee on January 5th, with the result that the Committee voted to recommend that the Federal Reserve Board discontinue the membership of the 111 bank unless the board of directors agrees before January 15, 1931 to bring about a change in the management of the bank. He stated that a conference Was held with the President and one of the directors of the bank on January 7th, and there is a possibility that a sale of the institution or perhaps a Merger with the Ohio State Bank of New Philadelphia can be effected. °f In view this fact, and the further fact that the member bank appears to be solvent, 14.r. Fletcher expressed the opinion that no action should be recommended to the Pederal Reserve Board just at this time affecting the membership of the bank. With regard to the City Savings Bank and Trust Company, Alliance, Mr. Fletcher stated that his Executive Committee voted to recommend that the Federal Reserve Board discontinue the membership of the bank unless certain tequirements of the State Banking Department are complied with before January 151 1931. Since that time, however, the directors of the institution have agreed to make the adjustments required by the State authorities, in view of Which fact, he stated that he is of the opinion that the bank should be given 9 1/13/31 thirty or sixty days in which to do so. He then discussed the condition of the Linerva Savings and Trust Company, Ilinerva, Ohio, stating that at a meeting of his Executive Committee an Jan1lSrY 5th action was deferred, although it was the consensus of opinion that llriless efforts to bring about the consummation of the plan to liquidate this bank throuoil a merger with or purchase by the Minerva Banking Company are silccessful, or the questionable assets are removed, a recommendation that its membership be discontinued should be made to the Board. Since then, he stated, he has received a copy of an offer to consolidate addressed to the Xinerva Banking Company by the member institution, and that in his opinion nc recommendation to the Board for discontinuance of the membership of the Itinerva Savings and 2rust Company should be made just at this time. In the case of the State Bank of Bowling Green, Ohio, Mr. Fletcher stated that his z;xecutive Committee on January 5th, voted to recommend that the Federal Reserve Board discontinue the membership of the bank unless an 41 reement to deposit cash for the full amount of the depreciation in its securities account is carried out before January 15th. He stated that this institution consistently has refused to meet the wishes of the Federal Reserve Bank and that unless improvement in its condition is soon effected, he tesls it will be necessary to take action looking to the discontinuance of its membership in the System. After some discussion, it was voted to advise Mr. Fletcher formally that after considerino: the condition of the State Bank of Bolding Green, in the light of the facts presented by him, the Board would like, before taking action on any recommendation of the ixecutive Committee of the Federal Aeserve Bank of Cleveland that the membership of the institution be terminated, to have a report from the State Superintendent and the directors of the member bank as to whether they can and will comply with the condition laid down by the Cleveland bank. 1/13/31 -3- No action being recuired by the Board regarding the three other institutions reported on by Lir. Fletcher, his conclusions were merely noted by the Board. At this Point Mr. Fletcher left the meeting. The Assistant Secretary then stated that advice has been received from the Chairman of the Federal Reserve Bank of Dallas of the reelection of .Mr. B. A. McKinney, as a member of the Federal Advisory Council representing the Eleventh Federal ileserve District for the year 1931, and that 1:r. U. E. connell has been reelected as alternate for Mr. LbKinney. Letter dated January 8th from the Chairman of the Federal heserve Bank 01' San 2rancisee, advising of the appointment of Mr. Henry L. Robinson, Chairman of the Board of the Security-First National Bank, Los Angeles, California, as a member of the Federal Advisory Council, representing the Twelfth Federal Reserve District for the year 1931; the letter also advising that the directors of the San Francisco bank have approved for Er. Robinson 4 fixed allowance of ,750 for each meeting of the Council attended by him in lieu of actual expenses. Upon motion, the allowance fixed by the board of directors of the San Francisco Bank for the member of the Federal Advisory Council, representing that district, was approved. Report of Committee on Salaries and Expenditures on list submitted by the Federal Reserve Bank of New York, of employees for whom the directors 111 4DProved leaves of absence with pay, on account of illness, during the month °f December, where the total of such absences since January 1, 1930 has eZeeeded thirty days; the Board's Committee recommending approval of the 8alary payments involved. Approved. Letter dated January 8th from the Chairman of the Federal deserve Bank 01 San Francisco, advising. of the fees and allowances for the Jirectors of the San Francisco bank and its branches, fixed by the Board of Directors at its meetinc. on that date, for the year 1931. Upon motion, the fees voted by Board of the 3an Francisco bank were aperoved. Letters dated January 8th from the Chairman of the Federal Aeserve Bank Of an Francisco, advising of the reappointment of the :.sxecutive Committee Of the bank and of 3. G. Jarent as Jecretary, for the year 1931. Noted. 12he Governor reported a telephone conversation with Deputy Governor Burgess of the Federal deserve Bank of New York in which the latter advised that the balance of the .32,000,000 of Governr,ent securities purchased by the °Pen lIarket 2olicy Conference for 3ystem .,,ccount over the year-end -eriod has now been sold. 2he Governor then reported that he received this morninp: from 3enetor Glass a request that he appear next LIonday mornim7 at 10:30 before the 4111)-camnittee of the Committee on Bankino; and Currency or the Jenete, which 18 conductinc: an investimtion of the Federal deserve 3ystem under the Provisions of the 3enate desolution 1-,o. 71. ;it this point Li'. Pole entered the room and the meet in continued as 4 roular meetino: of the Board. '2he minutes or the meetinr7s of the Federal deserve Bosri held on ' )-111 -rY 6th and 8th were read and approved as amended. ihe LAinutes of the meetim2; of the Executive Co=ittee of the Federal lieserve Board held on January 12th were read and approved and the actions ' l e Qorded therein were ratified. 1/13/31 -5- r. Haulin was called from the r;:eetin,:; and upon his r-,:tArn renorted te1ep1101 request from Lienator Glass that :.:r. Mier and he appear before the s' b-comittee on hursday, January 22nd. )1i14'd Datod, January 12th Dated, January 12th 1000tu endin chan -,es in stock at Federal ites as sot forth in the Luxiliari Minute 13oe1 of t ," • c ornenj_a t ions a po roved.. : on of .AecoranlendinF: act ion on an aprl i cat ion for a a state bank, subect to the conditions statl n the inlividual reports attached to the anplication, '7.7) sot forth in the boo; of this late. .ioce=ends t ion approved. ?he meetin-: adjournel at 1:15 n. m. ;Is s is tant 3ecretary. 4Proved: jait„11T.22.3 (Jana!„ry 13, 1961.) teoort of 3tandin.p., CaT,mittee, dated Januar:1 12th, recorneading a cham7e in stock: at a 2oderal Aeserve Bank, aporoved as follows: AS.112L1c.ition for oAIGIr"L 3tock: ataLrict io.8. Phillips Lational Bank, Helena, .:aikansas. 3hares 63 69 lieport of ,;tandin Julmittee dated January 12th, recomtlendinc- action 04 applic.ition for adnlission to membershin by the followinp. , state institution, subject to the conditions stated in the renort attachel to the a pplication. APP Name Chouteau 2rust Company, 3t. Louis, Lissouri. Shares 144 JY.J.BanX- Louis ;t. - ssistant 3e0retary. Approved:
@FedFRASER