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A meeting of the Executive Committee of the Federal Reserve Board was held in the office of the Federal Reserve Board on Friday, January 22, 1932, at 1210 P. PRESENT; Governor Meyer Mr. Hamlin Mr. Miller Mr. Magee Mr. Morrill, Secretary Assistant Secretary. nr. McClelland, The following matters of business were considered and acted upon by the Committee: Letter dated January 21 from the Secretary of the Federal Reserve Bank of New York, and telegrams dated January 21 from the Chairmen of the Federal Reserve Banks of Kansas City and San Francisco, all advising that the Boards of Directors, at meetings on that date, made no changes in the banks' existing schedules of rates of discount and purchase. Without objection, noted with approval. Report of Committee on Salnries and Expenditures on a letter dated January 16 from Deputy Governor Helm of the Federal Reserve Bank of Kansas City requesting approval of a change in the personnel classification plan of the bank to provide for the creation of the new position, "Assistant to SPecial Agent", in the "Failed Banks-Rediscounts" department; the Board's Cammittee recommending approval. Approved. Reply, approved by five members of the Board on January 21, to a letter dated January 7 from the Chairman of the Federal Reserve Bank of San Francisco advising of the reappointment for the year 1932 of Mr. Henry MI Robinson as a membgr of the Federal Advisory Council representing the 32 1/22/32 -2- Twelfth Federal Reserve District, and requesting approval of compensation and allowance, fixed by the San Francisco directors, of 0750 for each meeting of the Council attended by Mr. Robinson; the reply stating that the Board has aPproved the compensation and allowance referred to. Reply approved. Reply, approved by five members of the Board on Tanuary 21, to a letter dated January 7 from the Chairman of the Federal Reserve Bank of San Francisco requesting approval by the Board of fees and allowances fixed by the San Francisco Board for the directors of the bank and of its branches during the current year; the reply stating that the Board has approved the fees and allowances referred to. Reply approved. The salary of Mr. Tohn R. Mitchell as Federal Reserve Agent and ahsirman of the Board of Directors of the Federal Reserve Bank of Minneapolis Was fixed at the rate of 020,000 per annum for the year 1932. The salaries of Messrs. Curtis L. Mosher and F. M. Bailey as Assistant Federal Reserve Agents at the Minneapolis bank were fixed at the rates of 47,000 and 0,500 per annum, respectively, for the year 1932. Salaries of other officers fixed by the directors of the Minneapolis bank for the year 1932, at the annual rates stated below, were then approved: Name Win. B. Geery Harry Yaeger Harry I. Ziemer Frank C. Dunlop Leonard E. Rast Harold C. Core Arthur R. Larson Robert F. Homstram Andreas Ubland Title Governor Deputy Governor Deputy Governor and Cashier Controller Assistant Cashier " " tf " " " Counsel (retainer) (Office expense) Salary $25,000 13,000 8,500 8,000 5,000 5,500 5,300 4,500 5,000 4,000 -3- 1/22/32 Title Name Salary Helena Branch Robert E. Towle Herbert L. Zimmermann Albert A. Hoerr Taylor B. Weir Managing Director Cashier Assistant Cashier Counsel (retainer) $7,000 4,500 3,300 1,200 Reply, approved by the Executive Committee on January 21, to a letter dated January 13 from Congressman Guinn Williams requesting a list Of all employees of Federal Reserve banks receiving salaries of 05,000 or more annually; the reply stating that the employees referred to are not employed or paid by the United States Government but are selected and comPensated directly by the individual banks by which they are employed and that in the circumstances the information requested is of a character which the Board is not in a position to make available. Reply approved. Telegraphic reply to a telegram dated January 21 from the Governor Of the Federal Reserve Bank of New York advising that at the meeting of the Board of Directors of the bank yesterday it was voted, subject to the aPproval of the Federal Reserve Board, to authorize the officers to arrange for the renewal, for a period not exceeding three months of the banks' Participation of $25,000,000 in the credit to the Reichsbank which expires on February 4, 1932, on the same terns and conditions as the present credit, Provided the other participants agree to do likewise; the reply stating that the Federal Reserve Board offers no objection to the action of the directors of the New York bank. Reply approved. 34 -4- 1/22/32 Letter to the Federal Reserve Agent at Atlanta with regard to his letter of January 16 reporting that the First National Bank of Waynesboro, llississippi, had been deficient in its reserves for more than six consecutive months but that upon taking the matter up with the President Of the bank the deficiencies were eliminated and a promise made that proper reserves would be maintained in the future; the proposed letter stating that in accordance with the Federal Reserve Agent's recommendation, no action Is being taken by the Board at this time other than to transmit a copy of his letter to the Comptroller of the Currency for his information. Reply approved. Reply, approved by five members of the Board on January 21, to a letter dated January 12 from the Federal Reserve Agent at St. Louis transmitting a voluntary notice of intention to withdraw from membership in the Federal Reserve System filed by the Franklin-American Trust Company, St. Louis, Missouri, under date of January 6, 1932, with the request that it be Permitted to withdraw from membership immediately; the Board's reply stating that in accordance with the Federal Reserve Agent's recommendation, made in view of the fact that the business of the trust company has been acquired by the First National Bank in St. Louis without a liquidating agent or receiver being appointed, the Board will waive in this case the usual requirement of six months notice and permit the member bank to withdraw from membership immediately. Reply approved. Reply, approved by five members of the Board on January 21 to a letter dated December 31 from the Assistant Federal Reserve Agent at Chicago transmitting a resolution adopted by the board of directors of the Peru -5- 1/22/32 National Bank of Peru., Illinois, the deposit liabilities of which on November 10, 1931 were assumed by the State National Bank of Peru, expressing the desire to surrender the right to exercise trust powers, in order to obtain the return of securities deposited with state authorities, the reply suggesting that since it appears that it will be necessary for the National bank to be placed in voluntary liouidation within a short time, the state authorities nay only desire evidence of the fact that the bank has been relieved of all of its duties as fiduciary, and that it probably would be more expeditious and less expensive for the state authorities to obtain such evidence themselves rather than to have an investigation made, as is necessary under the Board's Regulation F before a formal certificate to the effect that the bank is no longer authorized to exorcise trust Powers could be issued by the Board. Reply approved. Letter to the Assistant Federal Reserve Agent at New York, approved by five members of the Board on ;Tanuary 21, with reference to his letter of January 12 transmitting with a favorable recommendation, an application received from the Genesee River lational Bank and Trust Company, ilount Morris, New York, for the surrender of its authority to exercise trust Powers; the reply stating that in accordance with the procedure outlined in the Board's Regulation F the Comptroller of the Currency is being renuested to have one of his examiners make a special investigation upon the occasion Of the next regular examination of the national bank and to furnish a report on the basis of which the Federal Reserve Board may issue a certificate to the effect that the national bank is no longer authorized to exercise trust Powers, also, that the Comptroller of the Currency is being requested to 56 -6- 1/22/32 advise whether the Board should withhold issuinL: the certificate in question until such time as the words "and Trust Company" have been eliminated from the banks title. Letter approved, together with a letter to the Comotroller of the Currency in accordance therewith, which was also approved by five members of the Board on January 21. Reply to letters dated December 30 and January 14 from the Federal Reserve Agent at Philadelphia giving the details of the mercer on December 28, 1931 of the Guarantee Trust Company, the i:arine Trust Company and the Neptune Trust Company, all nonmember banks in Atlantic City, New Jersey, Into the Atlantic Safe Deposit and Trust Company of Atlantic City, a member, under the charter of the latter and under the title "Guarantee Trust Company", the former Guarantee Trust Company having previously, on October 17, assumed the deposit liabilities of the Seaside Trust Company of Atlantic City and acquired the assets of that institution for liquidation; the reply stating that pending receipt of the further report which the Federal Reserve Agent stated would be submitted upon completion of the report of a recent credit investigation of the merged institution, the Federal Reserve Board will defer consideration of the question whether the transaction will result in a change in the general character of the assets Of the member bank or a broadening in the functions exercised by it within the meaning of the general condition under which it was admitted to the Federal Reserve System. Reply approved. L.17 -7- 1/22/32 In connection with the above, consideration was also given to a letter to the Federal Reserve Agent advising that the Board has approved the application of the Guarantee Trust Company of Atlantic City, Yew Jersey, for 660 additional shares of stock in the Federal Reserve Bank of Philadelphia, Which apnlication was based on an increase in capital incident to the recent merger, and stating that when this stock is issued the bank should be advised that the Board's approval of its application for such stock is not to be construed as carrying with it approval of the merger. Letter approved. The Governor then called attention to advice received by the Board that the establishment of a currency depot at Boise, Idaho, is desired by local institutions and that this matter has been under negotiation by representatives of the San Francisco bank and local interests without a satisfactory solution having been worked out. The Secretary was directed to advise the Governor of the Federal Reserve Bank of San Francisco thrit it appears to the Board that, unless there is some good reason to the contrary of which the Board is not aware it would be advisable during the present disturbed conditions to have a currency depot in Boise and that no time should be lost in working out a practicable and safe plan, even though it should involve some slight temporary inconvenience and expense. Report of Standing Comnittee dated January 20 recomnending approval of an application for admission to membership in the Federal Reserve System by the following state institution, subject to the conditions contained in a letter to the applicant bank submitted with the Committee's report. 1/22/32 Number of Shares Name of Bank Glenwood State Bank, Glenwood, Iowa. F. R. Bank Chicago 36 Approved. Report of Standing Committee dated January 22, recommending approval Of the following Clayton Act application: nr. Frederick A. Flather for Permission to serve at the same time as director of the Union Old Lowell National Bank of Lowell, Mass., and as director of the Merchants National Bank of Boston, /lass. Approved. The meeting adjourned at 12:45 p. Secretary. Approved:
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