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2188 A. meeting of the Executive Committee of the Federal Reserve Board was he, in Washington on Thursday, July 19, 1934, at 11:30 a• m• PRESENT: Mr. Thomas, Chairman, Executive Committee Mr. James Mr. Szymczak ATI-. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Martin, Assistant to the Governor The Committee considered and acted upon the following matters: Telegram dated July 18, 1934, from Mr. Austin, Chairman of the l'eciel'al Reserve Bank of Philadelphia, advising that, at a meeting of the bO4 " . of directors on that date, no change was made in the bank's existing scheaule of rates of discount and purchase. if Without objection, noted with approval. Telegram dated July 18., 1934, approved by four members of the Board, to Tur_. ,v Stevens, Chairman of the Federal Reserve Bank of Chicago, reading as f°11ows, " by yo Re !Tr. Yaung's telegram July 16. Board approves action taken foil 1.1r executive committee at meeting on that date in deciding to witkow re commendation of Industrial Advisory Committee of your district tio"respect to loans received from banks or other financing institathat your bank allow out of interest received on portion of loans retn2 tlitZi r,fled 1377 You V,P7 Per annum to participating banks or financing instist,'Ils which agree to service loans and report regularly to you on ' 6112 of borrower, effective August 1, 1934." Approved. totr. as Letter dated July 18, 1934, approved by five members of the Board, foii-le:7, Deputy Governor of the Federal Reserve Bank of Chicago, reading ow Of UrN IleCelpt is 1_ tter from acknowledged of your yo letter of July 9, inclosing copy the Assistant Secretary of the Retirement System of um, Quderal Reserve Banks with reference to the case of James J. Mooney, Supervisor in the Washington office of the Leased Wire System. In view of the efficient service being renaered by Mr. Mooney, it • 41..is requested that you recommend to the Retirement Committee that nooney be continued in service for a period of one year from March ,! 1934, in accordance with Section 3 sub-section (1) paragraph (a) of "le Rules and Regulations." 1 Approved. nemorandum dated July 12, 1934, from the Committee on Salaries and %erlditures, submitting a letter dated July 7 from Mr. Helm, Deputy Governor kaCashier of the Federal Reserve Bank of Kansas City, which requested apPr°7al of a change in the personnel classification plan of the Oklahoma City hliallch to provide for the new position of 4guard" in the general service°111.1:As department. The memorandum stated that the committee had reviewed the pro- ()13e'l• cb.ange and recommended that it be approved. The recommendation was ap1/r(Ived by five members of the Board on July 17, 1934. Approved. Letter dated July 18, 1934, approved by five members of the Board, t0Walsh, Federal Reserve Agent at the Federal Reserve Bank of Dallas, teadl. "e as f011017S: cot "Reference is made to your letter of July 5, 1934, inclosing a a letter June 29, 1934, from Vice President McLaughlin b y:lie Security dated Bank & Trust Co., Rails, Texas, advising that the State which on December 27, 1933, filed notice of intention to withdraw arr the Federal Reserve S7stem, does not desire at this time to withfrom membership. „ 4 In view of such advice, the Board considers the notice of inte, to1 withdraw as having been canceled. ztr It has been noted that the State examiner suggested that the bank thengthen its capital position by the sale of capital debentures, but tie': is no information as to what action has been taken in that respect. vallt'u°ard feels that any bank in need of capital funds should take adof present opportunities to strengthen its capital structure and 2190 7/19/31 -3- Provide an adequate amount of net sound capital to support the deposit l iability." Approved. Letter dated July 17, 1934, approved by four members of the Board, to The First National Bank of Belfast", Belfast, Maine, reading as follows: t. "The Federal Reserve Board has given consideration to your applica,!:011 for permission to exercise fiduciary powers, and grants you author-4,Y to act, when not in contravention of State or local law, as trustee, , xecutor, administrator, registrar of stocks and bonds, guardian of zstates assignee, receiver, committee of estates of lunatics, or in other fiduciary capacity in which State banks, trust companies or Other corporations which come into competition with national banks are ltted to act under the laws of the State of Maine, the exercise of such rights to be subject to the provisions of the Federal Reserve el;ld the regulations of the Federal Reserve Board. cr , This letter will be your authority to exercise the fiduciary powers ed by the Board. A formal certificate covering such authorization —4-1. be forwarded to you in due course." V Approved. Letter dated July 18, 1934, approved by four members of the Board, t " First 10175: National Bank in Fairfield", Fairfield, Iowa, reading as fol- pli "The Federal Reserve Board has given consideration to your apalivi?lation for permission to exercise fiduciary powers, and grants you tr,,°ritY to act, when not in contravention of State or local law, as 0,-7'ee, executor, administrator, registrar of stocks and bonds, guardian ''states, assignee, receiver, committee of estates of lunatics, or a4Y othother fiduciary capacity in which State banks, trust companies Ox* e , corporations which come into competition with national banks oftSermitted to act under the laws of the State of Iowa, the exercise Act 1 such rights to be subject to the provisions of the Federal Reserve the regulations of the Federal Reserve Board. powe ,This letter will be your authority to exercise the fiduciary izat', granted by the Board. A formal certificate covering such author'7111 be forwarded to you in due course." T Approved. Letter dated July 18, 1934, approved by four members of the Board, 2191 7/19134 to Mr, O'Connor, Comptroller of the Currency, reading as follows: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The Brady National Bank', Brady, Texas, from $100,000 to :, 1 50,000, pursuant to a: plan which provides that none of the released capital shall be renamed to the shareholders, but will be used to eliminate or reduce undesirable assets to be selected by a national bank examiner, all as set forth in your letter of July 11, 1954." Approved. Telegram dated July 15, 1954, approved by three members of the Board, to mr. Williams, Federal Reserve Agent at the Federal Reserve Bank of Cleve- 2 Stating that the Board has given consideration to the application of the M WLo -ei-ank 111 Corporation", Pittsburgh, Pennsylvania, for a voting permit 1111cr eection 5144 of the Revised Statutes of the United States, as amended, itling such organization to vote the stock which it owns or controls in "Me NA+. --lonal Bank of Charleroi and Trust Company", Charleroi, Pennsylvania, arid "The Second National Bank of Uniontown", Uniontown, Pennsylvania, and autt °rized the issuance of a limited permit to the applicant for the fol" letri rig Purpose: soc. "At any time prior to October 1, 1954, to amend the articles of asutr ofa each of such banks and to take other action necessary to barik°r"e2 as provided by law, the creation and issuance by each of such of common stock and/or preferred stock of one or more classes and in uch as may be satisfactory to the Peciral amounts and with such incidents Reserve Agent at the Federal Reserve Bank of Cleveland." Ihe telfer,- 'am also authorized the agent to have prepared by counsel for the Pedera, -I reserve bank, and to issue to the Mellbank Corporation, a limited vet,Pa in accordance with the telegram. Approved. the p Letter dated July 18, 1954, approved by five members of the Board, to ederal reserve agents at all Federal reserve banks, reading as follows: 21.92 -5"For some time it has been evident that the selected items inded in the weekly report of condition of member banks in leading Cities are not as informative as they should be, principally because loans are not classified as between open-market loans and customer ,°alls and because the deposit figures relate not to actual deposits 011:1st to certain special categories necessitated by the present method (2,computing reserve requirements. In order to obtain data which nil enable the System to better appraise the extent and character Of ?urrent changes in the condition of the weekly reporting member the form (St. 51a) used by them in submitting their reports 1°1:11s) ebeen , revised in accordance with the sample inclosed. It is sug'gc..!e ed that this form be printed locally, in accordance with the pro.1,1re heretofore followed, ana that member banks be requested to subRut reports in accordance therewith beginning Wednesday, September 5, 1934. It will be noted that the revised form provides for a balanced ateme ,4.4 i,e', " and also for certain information regarding debits to deposit unts. The debit figures, also the data on deposits, will be used s- connection with the study of the proposed change in member bank reire requirements referred to in the Board's letter of this date. It not intended for the present to change the form in which the figures are publidhed." z Approved. to the Letter dated July 18, 1934, approved by five members of the Board, rederal reserve agents at all Federal reserve banks, reading as tqlows: 00_ "On March 23, 1934, Governor Black, in testifying before the ,211.0ittee on Banking and Currency of the United States Senate, renewed viuoirbehalf of the Federal Reserve Board the recommendation of the Board be... leelelation: establishing a system of member bank reserve requirements Thr sd not only on the volume of deposits but also on their turnover. Syet sYstem of reserves was first recommended by the Federal Reserve %1 Committee on Member Bank Reserves in 1931. „ 4.e You know, the Federal Reserve System Committee on Member BamIr Res0 vesi:v ee slIbmitted its recommendations after extended research and ines4.1eati0n. In the course of that investigation it was necessary to ,:lraate on the basis of existing data what the required reserves of 1.41Z Memb er banks as a whole would have been under the Committee's plan to 1! been in effect during earlier periods. It has now been decided obt::"end the scope of that investigation somewhat in an effort to ! 1 information for individual banks and for groups of banks regarde"anees in reserves required under the committee's proposal compared 2193 7/19/34 -6u • With changes in reserves required under the present law. It is desired to determine with respect to such banks (a) the extent to Which required reserves under the propo sed plan would fluctuate i sIgitdifferent seasons of the year, compared with changes in pre required reserves, (b) the extent to which required reserves under the prese nt and proposed plans fluctuate with changes in busiand credit conditions, anti (c) the extent to which the burden Of reserves would be increased, decreased, or shifted among banks by the proposal. "In connection with this study we should. like to have you enlist .1,61e cooperation of representa tive groups of member banks, as indicated elow, in supplying the necessary data for determining what required reserves would have been under the Board 's proposal over a period exback throu 1928. gh would It be helpful also if the very nece 41_ ssarY data could be obtained for 1924-1927 for at least some of ' 41e banks. are: The groups of banks for which we shoul d like to obtain the data „,. "1. Weekly figures from member banks that now submi weekl t y conreports. ser "2. Month ly figures from other banks in groups located in or be vine communities or regions whose chief economic activities may do,characterized by the production of specific commodities or by the Ilinance of a particular type of industry such as: a, Cotton growing b. Tobacco growing C. Wheat raising d. Corn growing e. Livestock f. Dairying and poultry raising E. Fruits and vegetables h. Mixed farming i. Lumbering and logging j. Oil producing k. Coal mining 1. Iron Ore mining m. Other mineral producing n. Industrial and commercial 4.11e data required for our purposes are indicated by the follow, ..,:lclosures: 111. Form 234 - For obtaining currently commencing with September 1934, monthly data from selected banks other than those that now submit weekly condition reports. itp 4 2194 7/19/34 -7"2. Form 235 - For obtaining monthly data for back periods from such banks. 0. Form 235a, For obtaining weekly data for back periods from selected reporting member banks. "4. A statement explaining the forms. flr A " _ suggested form of letter to be sent to the member banks whose cooperation is to be solicited in securing back figures. In the case of weekly reporting member banks it is proposed to lect the required current data in connection with a revised form weeklY condition report about which you are being advised in a separate letter. ab, "It would be desirable to have whatever back data may be obtain1311 on Forms 235 and 235a in your possession in time for you to co-, the compilations on these forms for individual banks and groups Of c_ anks by the end of October. The current data on Form 234 it is contemplated should be collected commencing with September 1934 and '4ersrter until otherwise advised. be ,It is thought that if the required data for prior periods can di8e t'tained for approximately 10 percent of the member barks in each sa,rict, properly distributed, such a sample will make possible a 1121sfactory test, representative of all member banks in the district. i'wever, in selecting the banks whose cooperation is to be enlisted 4 the waY, it would be desirable to take only such banks as had been licens by the end of June, 1933, and whose past records are known to ( I ? be on11 Welw kept. In order to avoid any bias in selecting the banks it membcL be Preferable, wherever practicable, to include all representative ba*er banks in selected economic areas, and to confine the list of from which back data are requested to banks which are also being -" ditto suPply current data. porm Such data as are collected should be transcribed at your bank to cell%238 and 236a, copies of which are also inclosed, the information for iii columns 8 and 11 added and the calculations indicated on made. You will be advised later in what form to transmit vverd-ata to the Board. It is essential that the figures of 'daily for Zge required reserves during week (month) under Present law' called fl c1111111 column 8 and of 'average 'borrowings from Federal Reserve bank vlsk (month)1 called for in column 11 be comparable with the fig; 11411 the other columns. Accordingly, special care should be taken e case of the figures for any bank that absorbed or merged with ote , slIppl'r more other banks during the period to insure that the figures le .c1 from the records of the Reserve bark represent the same bankite , s as do those furbished by the member bank. T 2195 _8_ "It will be appreciated if you will furnish us, as soon as praclcable with a list of the reporting member banks and other banks in 7 1 .1r district from which you propose to obtain back data, the banks to Crouped in the manner indicated on page 2 of this letter. Please in this list the total deposits of each such bank at the end of "r3 and the population of the cities in which the selected banks are located, and the ratios of the aggregate deposits and population for c1.-1 selected banks and cities to the totals for your district. The 41st will be examined and you will be advised whether we have any suCge:tions to make in regard thereto. supply of the forms referred to herein will be sent you in due 4 coursees u L217 Approved. Letter dated July 18, 1934, prepared in accordance with the action take, at the meeting of the Executive Committee of the Board on July 9, eza 41:113r°7ed bY five members of the Board, to Mr. O'Connor, Comptroller of the ellrrellcY, reading as follows: vb.a4u "A2 c_ the know, section 5240 of the Revised Statutes provides Federal Reserve Board upon the recommendation of the eTPtroller of the Currency shall fix the salaries of all bank witen el's and make a report thereof to Congress. In connection preparation of the Board's annual report to Congress for heyear -ear si, 1933, it has been brought to the Board's attention that, fo-,e the enactment of the Banking Act of 1933, salaries proposed ijnational bank examiners have not been submitted to the Board co accordance with this provision of law. It is the opinion of 521,Zsel for the Federal Reserve Board that the provision of section co_ in question, notwithstanding the amendments to that section co'"ailled. in the Banking Act of 1933, is still in effect and a el2r °f the opinion of the Board's counsel on this subject isintbanherewith for your information. Accordingly, it is believed Act tas practice existing prior to the enactment of the Banking ! preg° '1933 should be continued and in the circumstances an exfrom you with regard to the matter will be appreciated." . Y°11 Approved. Letter dated July 18, 1934, approved by five members of the Board, to Iiire 010 011.11cr, Comptroller of the Currency, reading as follows: 2196 -9"Reference is made to the exchange of memoranda between Mr. ,walt and the undersigned, under date of July 3, 1934, in regard a footnote to be placed at the bottom of the list of salaries n,,,Ilational bank examiners which will be published in the Board's 7-Axea report for the year 1933. It was suggested in my memoran'mu that an appropriate footnote should read as follows: 'Since the enactment of the Banking Act of 1933, salaries of national bank examiners have not been 42 for submitted to the Federal Reserve Board approval.' Y011 know, Mr. Await suggested that the wording, as set out above, odified by substituting the words 'are not submitted' in lieu I hre not been submitted'. The suggested changethas been discussed by the Board and it fogis that the footnote should be in the form suggested in my memoranco of July 3 . In this connection, however, the Board requested its collnsel to consider the legal aspects of the matter and a copy of dat sells opinion is being sent you with a separate letter of this will therefore be appreciated if you will give the matter early consideration." 1 T yo Approved.. Letter dated July 17, 1934, approved by five members of the Board, to titre ote °1111°r, Comptroller of the Currency, reading as follows: You have s refers to your memorandum of July 6, 1934, stating that jallit received inquiries from your examiners as to the manner res "4"lch a national bank should carry a liability to a Federal by n. e bank upon an obligation transferred to such reserve bank national bank suant to the provisions of subsection b 114d ofsection 00 of the Reserve Act. It is understood that Federal oe hisf r date of July -, 1934, you addressed a telegram to your lieb, national bank examiners advising in substance that such rese4ities to the extent of the bank's obligations to the Federal yealcr : : s bank should be carried as 'obligations on industrial ade.sseZ- vransferred to the Federal reserve bank' and, that on the disc, side a corresponding amount should be carried in 'Loans and 1IlltSt or if in the form of bonds, then in investments. You yclit:tu•vised that the Federal Reserve Board is in agreement with seri, Tice that a liability of a member bank of the Federal Retile ) Is QYetem upon an obligation to a Federal reserve bank under serv.-2"°17isions of subsection b of section 13b of the Federal Re' Act s-ould a:bow. be carried on the books of the bank in the manner stateda n Approved. 2197 7/19/34 -10Letter dated July 17, 1934, approved by five members of the Board, to ur. O'Connor, Comptroller of the Currency, reading as follows: um,. Inis refers to your memorandum of June 30, 1934, in which Y°I1 request an expression of opinion by the Board on the question Whether a renewal after June 16, 1933 of a loan made by a member arik to an affiliate prior to such date constitutes a 'loan or ension of credit of any kind or Character to an affiliate' required to be secured by collateral in accordance with tc"8 he Provisions of section 23A of the Federal Reserve Act. "The first paragraph of section 23A prescribes certain urn• in respect to extensions of credit by member banks to liates and investments by member banks in, or loans on, the ligations of affiliates. The second paragraph of that section rovides 73.°an or in part that, 'Ilthin the foregoing limitations, each character to an affiliate shall t- extension of credited' any kind or ue secured by collateral in the form of stocks, bonds, debe tintliree, or other such obligations having a market value at the ,e of making the loan or extension of credit of at least 20 Delll centura more than the amount of the loan or extension of creait * * *1 lw "It is the view of the Board that a renewal of a loan should • be considered a 'loan or extension of credit' within the meanII ofr the provisions in question, and it would. appear that your logllirY must be resolved by determining the question whether a e2:11.°r extension of credit made prior to the effective date of p;;Llon. 23A is within the scope of the provisions of the second • , a:FraPla of that section. It will be noted that the provisions _ e" le first of section 23A are prospective in their /1:ati S -ond and, that the limitations prescribed therein do not vatY to loans, extensions of credit, repurchase agreements, inlents, or advances against collateral security made prior to; 16, 1933, the effective date of the section. Although the ohezikirase each loan or extension of credit of any kind or eeter to an affiliate', which appears in the first sentence of „ e second paragraph of section 23A, is sufficiently broad raad rms to embrace a loan or extension of credit to an affiliate phre prior to June 16, 1933, the use in the same sentence of the j e 'Within the foregoing limitations', and the requirement at sentence that the collateral shall have a certain value a.G the time of making the loan or extension of credit', mdith o h the phrase 'loan or extension of credit of any kind creA4!racter to an affiliate' refers to loans or extensions of made after the effective date of such provisions. Accordingthe Board is of the opinion that the provisions of the second egraph of section 23A are inapplicable to a loan made by a Taember batk prior to June 16, 1933, and renewed after such date, T r r 219E3 -111.7 . 1. that such a loan is not required to be secured by col'"eral under the provisions of that paragraph. .!or the purposes of the Board's records, it will be c..1) eciated if you will furnish the Board with a copy of such of csrti tillnioation as you may send to 'The Citizens Ilational Bank Angeles, California', or to your examiner in conneclon with this matter." Approved. Telegram dated July 18, 1934, approved by four members of the Board, t°114.. Iowa. Prank ;Varner, Secretary of the Iowa Bankers Association, Des Moines, reading as follows: uilef 61'ex:tee your letter July 12. If words 'before maturity' in th-"Ilumber 22 are stricken out anti there are inserted in lieu a.nere°f the words 'before the expiration of the period above 0iTriedi, it is Board's view that forms of time certificates submitted with such letter will not be inconsistent ' ia aPPlIcable provisions of Regulation q and if such change da made Board will offer no objection to classification of 120sits evidenced by such certificates as time deposits for -4 Poses of said regulation." Approved. to the Letter dated July 17, 1934, approved by five members of the Board, eederai tollowz2 reserve agents at all Federal reserve banks, reading as aes "In its telegram of June 23, 1934, Trans. 2015, the Federal tioerve Board advised you that it had issued a permit under Secba:. 32 ) c f the Banking Act of 1933 authorizing any member bank or aeai-s to baAre correspondent relationships with any dealer or ers in connection with underwriting and dealing in municipals of scAher obligations of the kinds exempted from the restrictions e:!10n 5136 of the Revised Statutes. .1 11 that telegram the Board stated that: * * * Instead of formal applications usually required, each member bank which exercises privilege granted herein : 411 promptly furnish to Federal Reserve Agent of dis;:rIct in which member bnnk is located such information ';°11oerning its operations under this permit as Federal Reserve Board may require, and Board will at an early 2199 7119/34 "Idate advise as to information which must be submitted. ITPon receipt of required information, each Federal Reserve Agent will be expected to review promptly facts involved ln each correspondent relationship covered by this permit in his district, and to advise Board of any case in which facts are such as to indicate that permit should be revoked as to particular relationship. Each Federal Reserve Agent is requested to review all correspondent relationCovered by this permit in his district, and advise 3°ard, not later than November 15, 1934, whether in his °Pinion it will be compatible with the public interest to renew this permit, stating reasons for his ooinion. * * *1. You are requested to mivise all member banks in your district that.eadh such banl- availing itself of the privilege granted by the above referred to must submit to you promptly information :oribinc the nature of the relationship and the following detailed p rmation t regarding each syndicate operation in which it partici"1. A description of the issue, including the name Of the issuer, the nature of the obligations (whether bonds, notes, or other obligations), the amount of the "selle, the maturity, and the rate of interest; 1 2. The names of the other members of the syndicate or group which participated in the transaction; "3. The amount of the issue subscribed for by the reporting member bank; 114. The amount of the issue actilnlly taken by the reporting member bank; 0. The price paid for the securities by the member bank, and the price at which they were sold to the public. "6. The extent to which the member bank's participation ts been disposed of at the time of its report to the Reserve Agent and the extent, if any, to which the member bank proposes to retain the securities for its own :ccount. zliff, If in any case you feel that the information submitted is not the lcient to enable you to form a conclusion as to whether or not are Permit in the particular case is in the public interest, you baz;eTuested to obtain such additional information from the member :s You deem advisable. i,p_ The information to be obtained is intended to supplement the s;41Zmation available to you from reports of examination and other last !e and assist you in advising the Board as requested in the Trats:lon lIences quoted above from its telegram of June 23, 1934, Approved. 2200 -13- Letter dated July 17, 1934, approved by five members of the Board, to ur. Case, _ Pederal Reserve ent at the Federal Reserve Bank of New York, l'eaclitC as follows: "Receipt is acknowledged. of your letter dated. June 29, , with the inclosures, regarding the request by Mr. Richard *.,. Hicgins for a ruling by the Board as to the applicability of Section 32 of the Banking Act of 1933 to his service at the !ame time as director of the Manufacturers Trust Company, New t?I'k, New York, and as director of the Guardian Aasets Corpora' 10a, Dover, Delaware. "It appears that the Guardian Assets Corporation was organized ljTsaer the laws of Delaware on September 24, 1928, as an investment L-lust and that all the stock of the company is owned by a group O i„1: individuals. It has been stated that during the -period from " 2 . 28 to 1930 inclusive, the corporation participated in a few ibrnall underwriting syndicates and. joint accounts which resulted 1,4 a small profit, but that since the year 1930 the corporation not participated in any such transactions, has no intention 11 becoming again a participant in any such transactions, and ,14 merely held. for investment such securities as it then hali in ielaTo .lio making such changes from time to time as appeared 1934 Z "Also, it has been shown in connection withthe business of inve,f--lng and reinvesting the company's assets during the past 1-;:u'r Years that the total sales prices of securities sold by it ' 1'e in the following ratio to its total assets: 1930 Proportion of securities sold to total assets 28.45 u 1931 u u u u u u 3.3'?; il It 0 11 ii 11 II 1932 0 II II 11 u II u 1933 ' 4 5 "During value of the the same period the proportion of sec • L4r1tles shown to be as assets is follows: .,purchased by it to its total k 1930 Proportion of securities purchased to total assets 53.15 0 11 0 0 II 0 0 1931 3.2% II II II 1932 II II u II 6.0% II 1933 II u II II II u 8.2:,; th "The proportions of the company's portfolio with respect to 1 e Periods during which the same had been held at the end of the e'et 3 Years is shown as follows: 1932 1931 ..-7, Rad 6 o 12 months 291 ] 77 t 6 , 0. u 13....45, 0 12 to 23.6% 18 months I' 18 to 24 months 4.2c,; 24.9,<; U 89.9;/0 87.7/0 over 24 months 42.7% Dorayi_According to the statement made by the Treasurer of the Cor:10a, it has never carried on any operations of a speculative 2201 7/19/34 -14°nature on any stock exchange or elsewhere. ,. "On the basis of the information submitted, the Board believes that the Guardian Assets Corporation may not be regarded ' s being 'engaged primarily in the business of purchasing, selling, negotiating securities' within the intendment of the provisions Of Section 32. In the circumstances, the Board agrees with you 4a:,. a Yollr counsel that a permit covering Mr. Higgins' service to ;4at corporation and to the Manufacturers Trust Company is not .1. ecessery. and unless there are other facts which you believe :';10111d be brought to the attention of the Board, it is suggested that You advise Mr. Higgins accordingly. ft Approved. to 4r. kolad, Letter dated July 18, 1934, approved by five members of the Board, aoztpn, Federal Reserve Agent at the Federal Reserve Bank of Rich- readlng as follows: r "Reference is made to your two letters of May 1, 1934, A!garaing directors and/or officers of member banks in your k,kstrict who are apparently serving other organizations in iviolation of the Clayton Antitrust Act or Section 32 of the v, a111-1ng Act of 1933. It appears that in each case the per' st:4 involved has been advised by you of the applicable a atutorY provisions and. that in most cases you have sent 1,41rther letter to the person involved specifically calling 4'.4s ai ttention to the matter. ita The Board is unable to maerstand the attitude of these af. ividalals, and is, of course, prepared to take appropriate 13;e13,to bring about a compliance with the applicable statutory vrIsiOns. It is noted that in one instance the person ine° Yed has been ill for some time and this is undoubtedly the 4planation of the delay in his case. It is possible that shrr substantial reasons exist in the other cases, and it is virested that you communicate again with each of such indiof Calling his snecific attention to the requirements 1,r0 aPPlicable statutory provisions and requestinga -athrrapt relaY in order that the Federal Reserve Board may be ised it the premises." Approved. Letter dated July 17, 1934, approved by five members of the Board, to lLs 'r newt °11, Federal Reserve Agent at the Federal Reserve Bank of Atlanta, Na41.4 g 42 follows: 2202 7/19/ -15"The Board has received Mr. Clark's letter of July 5, 1934 ,; 1 eCarding the applications of Mr. J. L. Bedsole and Mr. Milton Brown for permits under Section 32 of the Banking Act of 1933 to serve as directors of the First National Bank, and the First Securities Company, both of Mobile, Alabama, in which letter there was inclosed a copy of a letter to Mr. Clark from Mr. Bedsole concerning the business of the Mobile Bond and Mortgage Company 7bAch both applicants also serve. Although there is no request t4 Mr. Clark's letter for a ruling by the Board, it is assumed that the copy of Mr. Bedsole's letter was transmitted in order :0 obtain the opinion of the Board on the question whether the j rvice of the two applicants to the First National Bank and to ' ;e Mobile Bond and Mortgage Company constitutes a relationship Within the scope of Section 32. , "Mr. Bedsole has previously stated that the charter of the Mobile Bond and Mortgage Company provides that the company may certificates of participation in real estate loans, but thatc such privilege has never been used nor is there any thought the part of the directors or officers of the company that it .er will be used. Mr. Bedsole also has stated that, while the ;Tile Bond and Mortgage Company has sold some mortgages to tivcstors, it has never issued bonds or other evidences of obligac4stmc-ared by the mortgages which the Company holds. As you know, the Board has previously reached the conclusi 0;Zn that neither mortgages nor ordinary mortgage notes arising of a direct loan on real estate are 'securities' within the cb,crIEment of Section 32 and that such obligations should not be th-"ified as securities for the purposes of that section. On bile basis of the facts submitted, the Board believes that the wiTiless of the Mobile Bond and Mortgage Company does not come to -n the scope of Section 32 and that a permit under the section seT that Company and the First National Bank is not necessary. Itt the circumstances, unless there are other facts which Yea b elleve should be brought to the attention of the Board, it " be appreciated if you. will notify the applicants accordingly." 1 Approved. to Latter dated July 18, 1934, approved by four members of the Board, Mr. George S. Hovey, President of The Inter-State National Bank, Kansas City, 14, Issouri, reading as follows: aw. "The Federal Reserve Board has received your letter of '1934, regarding the application of Mr. R. Hovey Tineraajf.3 a permit under Section 32 of the Banking Act of 1933 to sera as as a director of The Inter-State National Bank and 44 officer of Prescott, Wright, Snider Company, both of 2203 7/19g4 Ur? -16- Aansas City, Missouri. "In your letter you refer to the fact that the Board has decided that Mr. Tinsman is not eligible to continue as a director of your bank by reason of his serving as secretary and director of the above-named company, which appears to be a dealer in securities. You state that Mr. Tinsman is seriously considering resigning as a director and as secretary Of the Prescott, Wright, Snider Company, but remaining in the ! raPloY of the company and ask whether, in such event, it will agreeable to the Board for him to remain as a director of 'me Inter-State Uational Bank. "Section 32 provides that no officer or director of any member bank shall be an officer, director, or manager of any corporation, partnership, or unincorporated association engaged "Primarily in the business of purchasing, selling or negotiating securities, unless in any such case there is a permit therefor ,ssued by the Federal Reserve Board. If Mr. Tinsman ceases to cDe l a director and an officer of the Prescott, Wright, Snider °mParlY, and his relatIcnship to that company is not in a matagerial capacity, his service as an employee of the company and as a director of your bank will not come within the scope Of the provisions of Section 32 and, in the circumstances, no D,Prmit under that section for the continuance of such relationship will be necessary. "Your attention, however, is invited to the fact that Section 8A of the Clayton Antitrust Act prohibits a director, ?Ificer or employee of a national bank from serving as a director, officer or employee of a corporation other than a mutual savings bank which shall make loans secured by stock or bond 2011ateral other than to its own subsidiaries. The Federal raeserve Board has expressed the opinion that the carrying of oargin accounts involves the making of loans secured by stock _r bone collateral within the meaning of Section 8A4 and, ;Tordingly, even though a person is not an officer or director ,"mPany sel.?. engaged primarily in the business of purchasing, 'lnes or negotiating securities, so that the Provisions of 0;ction 04 are not applicable to his service as an employee company and as a director of a national bank, the Tationship falls within the prohibitions of Section 8A of ore Cl Act if the company makes loans secured by stock bond collateral in connection with the carrying of margin --ucoua “ts or otherwise. the "The Federal Reserve Board is authorized. by Section 8 of not ClaYtcn Act to issue permits covering relationships between , , more than three banking institutions which are otherwise ' 1: °hibited by the terms of Section 8 or Section 8A, if such e'-ationships are not incompatible with the public interest. /3.0 vers it is not the Board's practice to issue permits " 2204 7/19/a4 -17"authorizing relationships between national banks and institutions carryinz margin accounts, because it appears that one of the nciPal purposes of Section 8A was to terminate such relation4,'Ips and the issuance of permits authorizing relationships of hat kind would be incompatible with the public interest as eclared by Congress. I "Therefore, if the Prescott, Wright, Snider Company makes oa secured by stock or bona collateral in connection with the Ti arrYillg of margin accounts or otherwise, the service by Mr. nsman. as a director, officer or employee of that company and :!a director of your bank will come within the prohibitions of Q_ction 8A. In such circumstances, if Mr. Tinsman resigns as :!rector and as Secretary of the company, but remains as an 131°Yee,•although such steps will take his relationship with : company and your bank outside the scope of Section 32, the 'Prohibitions of the Clayton Act will still apply." T Approved. to Itr. 'letter dated July 17, 1934, approved by five members of the Board, • Waldo Coleman, San Francisco, California, reading as follows: "The Federal Reserve Board has given consideration to your illioation for a permit under Section 32 of the Bamidng Act of 3 to serve as director of The Bank of California N.A., and botreeident and director of the North American Securities Company, 11)11. San Francisco, California. Prom the information submitted by you in connection with cor7 aPPlication, it appears that the North American Securities riloj allY is a wholly owned subsidiary of the North American InvestCorporation and that, since the beginning of the present year, wIle abllsinese of the former company has been confined solely to the dealesale selling of Commonwealth Investment Company shares to corimers- It further appears that the North American Securities the:alkr Purchases for its own account such shares and resells 1)111,to dealers, absorbing any profit or loss incidental to the ' Ilse a nd sale of the same. or c The Federal Reserve Board believes that it was the intent shi cfliress in enacting Section 32 to terminate all relationOfseP certain types between member banks and dealers in :ftightities, apparently because it felt that such relationships ue i,„tend to influence in a manner which Congress deemed to -:"mPatible with the public interest the banks' credit tojailIreStMent policies and their advice respecting investments heir correspondent banks and other customers. Consequently, ;0:d.feels that it may not properly grant permits authoriz'atlonships which are actually of the kind referred to in 4 2205 7/19/24 -18that section and that its authority to issue such permits Should, be exercised only in exceptional cases, for example, those which are included within the literal terms of the statutes but which are actually of a kind different from the relatpnships at which its provisions were directed. A On the basis of the information submitted, the North '!flerican Securities Company appears to be 'engaged primarily 111 the business of purchasing, selling, or negotiating securities, within the meaning of Section 32 and the relationCovered by your application apparently is within the class which the Board believes that section was designed to terminate. It. the circumstances, the Board is unable to find that it n'uld not be incompatible with the public interest, as declared L'Y Congress, to grant your application. In the event that you desire to submit further facts or 41V-Irtient9 in support of your application, the Board is pre, 13arcd to give them careful consideration. However, any additional tacts or arguments should be submitted as promptly as possible, 1.11 w riting, through the Federal Reserve Agent." Approved. to 41x. Letter dated July 18, 1934, approved by five members of the Board., cxt011, Federal Reserve Agent at t?..ie Federal Reserve Bank of Rich- readlng as follows: "The Board has reconsidered the application of Mr. H. B. 14east* , Thompson Hotel Building, Elkins, West Virginia, for 44rmission under the provisions of the Clayton Act to serve of ! .1e same tirilLe as a director of the Citizens National Bank Elkins, West Virginia, and as a director of the th .,of Adrian, Adrian, West Virginia, and upon the basis of tnformation before it, including that submitted by the ti:1;1-1cant in his letter dated June 16, 1934, still feels the the granting of the permit would be incompatible with 193413.iblic interest as indicated in its letter dated June 13, Approved. to Itr. 44 Letter dated July 17, 1934, approved by four members of the Board, 4celvre, Federal Reserve Agent at the Federal Reserve Bank of t141 CitY, reading as follows: 2206 7/19/34 -1 9"There is inclosed a Clayton Act permit covering the service 11r* J- H. Thatcher, as director and officer of The First atonal Bank of Lamar, Lamar, Colorado, as director and officer Of The First National Bank of Trinidad, Trinidad, Colorado, and tt. director of The First National Bank of Pueblo, Pueblo, Colorado. It is noted that in reply to question numbered 12 on application form 94, the applicant states that he is also serving !. _director and vice-president of the Henry Investment Company The McMann Real Estate and Investment Company, both of Pueblo, u°10rado. tL "While the Board does not have detailed information regarding 1;e character of the business of The Henry Investment Company and MeMann Real Estate and Investment Company, it appears possible 1,nat t heprovisions of Section 32 of the Banking Act of 1933 are nPlicable in connection with his service as director and officer I the three national banks, and as director and officer of the O companies. You are accordingly, requested_ to with"d delivery of the Clayton Act permit to Mr. Thatcher until you 7s satisfied that Section 32 does not apply to the relationship ors described, in which event you are authorized to deliver the Act permit to the applicant, at the same time transmitting C05 thereof to the banks involved. If you find that Mr. Thatcher's service with either or both of c,2as two investment companies and the member banks involved. ag's within the provisions of Section 32, you are requested to th_l'se him of the requirements of that section and notify him vi(c1Q he may file an application for a permit covering such serwit!' Of course, if upon consideration of the facts involved, whe ' 't L the advice of your counsel, you are unable to determine comes within the provisions of Section 1R1Ire Thatcher's service 1.aci. - -2, the Board, upon receipt of full information, will be , 460 rule upon the matter. In any event, the delivery of the cia th-al"°11 Act permit sbould not be made until it has been determined ment Thatcher's service with either or both of the two investvisi companies and. the member banks does not come within the prohas rs of Section 32 or that his service with such institutions mellel brought into conformity with the requirements of that sectie Z investment "Please advise the Board of your action in this matter." Approved. to 14r4 Letter dated July 17, 1934, approved by four members of the Board, Maellz'e, Federal Reserve Agent at the Federal Reserve Bank of saz "-Y, reading as follows: 2207 -20There is inclosed a Clayton Act uermit covering the service Of Mr. R. C. Thatcher as director and officer of The First National of Pueblo, Pueblo, Colorado, as director and officer of .The fst National Bank of Lamar, Lamar, Colorado, and as director and icer of The Minnequa Bank of Pueblo, Pueblo, Colorado. It is oted that in reply to question numbered 12 on application form 94, le aPPlicant states that he is also serving as director and president the Henry Investment Company, Pueblo, Colorado. Mille the Board does not have detailed information regarding the character of the business of the Henry Investment Company, it possible that the provisions of Section 32 of the Banking Act tor of 1933 are applicable in connection with his service as direcand officer o-P the two national banks, ana as director and President of the Henry Investment Company. You are, accordingly, 111:aelcillested to withhold delivery of the Clayton Act permit to Mr. ateher until you are satisfied that Section 32 does not apply the relationship above described, in which event you are autii_orized er the Clayton Act -permit to the applicant, at the same time copies thereof to the banks involved. lierx, If you find that Mr. Thatcher's service with the Henry Investvi ComPallY and the member banks involved comes within the pro21°11e of Section 32 you are requested to advise him of the reZements of that section and notify him that he may file an applifor a permit covering such service. Of course, if upon a con,1?fl yo_ slderation of the facts involved, with the advice of your counsel, 're unable to determine whether Mr. Thatcher's service comes the provisions of Section 32, the Board, upon receipt of full ?rmation will be glad to re rule upon the matter. In any event, the ba_lverY of the Clayton Act permit should not be made until it has 0011 determined that Mr. Thatcher's service with the Henry Investment sencl??..nY and the member banks does not come within the provisions of l°11 32 or that his service with such institutions has been bro ' tO conformity with the requirements of that section. advise the 3oard of your action in this matter. T t zl Approved. Letter dated July 17, 1934, approved by four merilbers of the Board, to z apl3licant for a permit under the Clayton Act advising of approval of app14,. .%:a.t.2.on as follows: Mr. C. 't Carlile, for permission to serve at the same time as a -- or and officer of The First National Bank of Pueblo, Pueblo, , 00 National Bank of Lamar, LaMar, rad° m ' as a director of The First -or l'ueb, 0, and as a director and officer of The Minnequa Bank of Pueblo, Colorado. 4 Approved. 2208 7/19/34 -21Letters dated July 17, 1934, approved by five members of the Board, to i4-1loant5 for permits under the Clayton Act, advising of approval of their applications as follows: S. H. Curtis, for permission to serve at the same time as a 23rector and officer of The First National Bank of Yorktown, rorktown, Virginia, and as a director of The First National Bank of Poquoson, Odd, Virginia. Mr. w .illiam H. Nalty, for permission to serve at the same time r a director of The ibernia National Bank in New Orleans, New , leans, Louisiana, and as a director and officer of the Guaranty an34. and Trust Company, Hammond, Louisiana. Mr- Russel M. Boo-0*y, for permission to serve at the same time a director and officer of the Farmers and Merchants National r4k in Benton Harbor, Benton Harbor, Michigan, and as a director of The State Savings Bank, Bridgman, Michigan. 'Bruce , 1 Hardin, for permission to serve at the same time as i":'irsctor and officer of The Charleston National Bank, Charles,Lal, Illinois, and as a director and officer of the Rardin State Rardin, Illinois. Mr. u J. Tillemans, for permission to serve at the same time as a National nk director and officer of The Farmers and Merchants of Minneota, Minneota, Minnesota, and as a director and 0191 1-oer of The Farmers and Merchants National Bank of Ivanhoe, vanhoe, Minnesota. Mr. 'I' 1_ n u olln Tillemans, for permission to serve at the same time as is'irector and officer of The Farmers and Merchants National q171:k of Minneota, Minneota, Minnesota, and as a director of IliajenZs and Merchants National Bank of Ivanhoe, Ivanhoe, Approved. Letters dated July 13, 1934, aTTproved by four members of the Board, llt5 11P1ica for permits under the Clayton Act, advising or approval of their aPpl ications as follows: n C. C. Gautier, for permission to serve at the same time as' or The Central National Bank of Greencastle, Grea "t°r rec 00,1sncastle, Indiana, as a director of The Central Trust Greencastle, Indiana, and as a director of The to a 2209 7A9/34 -22- Ladoga State Bank, Ladoga, Indiana. !Ar. Prank Donner, for permission to serve at the sane time as a director of The Central National Bank of Greencastle, Greencastle, and as a director of The Central Trust Company, Greencastle Indiana. l.a' m r. vlYde R. Randel, for permission to serve at the sane time as ;• director of The Central National Bank of Greencastle, Greencastle, ndiana, and as a director of The Central Trust Company, Greencastle, Indiare. 4r. -.".as. H. Barnaby, for permission to serve at the same time as ;director of The Central National Bank of Greencastle, Greencastle, udiana, and as a director of The Central Trust Company, Greencastle, Indiana. 11r. Kenneth E. West, for permission to serve at the same time as an l csaicer of The Central National Bank of Greencastle, Greencastle, T'V'aun, and as an officer of The Central Trust Company, Greencastle, Ur. br Ja. L. Wells, for permission to serve at the same time as an )1 ( 1 eer of The Central National Bank of Greencastle, Greencastle, ll`l'ann, and as an officer of The Central Trust Company, Green, Aastle, Indiana. Approved, together with a letter, also dated July 18, 1934, and approved by four members of the Board, to Mr. Stevens, Federal Reserve Agent at the Federal Reserve Bank of Chicago, reading as follows: th .:There are inclosed copies of Clayton Act permits issued by 0*- 4.oard to the following directors and/or officers of The e ral ilationeo Bank of Greencastle and The Central Trust Co-railY, 0th of Greencastle, Indiana: C. C. Gautier Charles H. Barnaby Kenneth E. West Frank Donner H. L. Wells Clyde R. Randel "The • permit issued to Mr. Gautier also covers his service 171th Th " e Ladoga State Bank, Ladoga, Indiana. ten You will be advised in a separate communication of the action bY the Board with respect to the application of Mr. F. L. b,Z'r to serve as director and officer of the two Greencastle -elland the Ladoga bank. the ,In the application of Mr. Barnaby it was noted that report of examination of The Central National Bank of Greencastle 2210 7/19/34 -23- n 8110v7ad a direct liability of Mr. Barnaby in the amount of $14,400 ciaezified as slow and renorted by the examiner to be an old capital loan which should be refinanced or adequately secured. The : aminar also reported that Mr. Barnaby habitually overdraws his v-ecolza and that recently such overdrafts had amounted to as mch u bas $ 5,000. Although Hr. Barnaby is not an executive officer of the ;211 tha Board feels that such extensions of credit are unwarranted; lt is assumed that in accordance with the statement made in your ,,e12c)rt covering the application of Mr. Barnaby you. have discussed 6/11s Tatter with President OtHair. The. Board desires that when you submit your recommendations as a "" of your anni121 review of these permits, you report fully asto tue current status of Mr. Barnabyts borrowings and ascertain M ,, advise whether he has discontinued the oractice of overdrawing a ccount." Letter dated July 18, 1934, approved by four members of the Board, to all aDPlicant for a permit under the Clayton Act, advising of approval Of his aDplication as follows: 4 O t Hair, for Permission to serve at the same time as .14ractor and officer of The Central National Bank of Greenoentle, Greencastle, Indiana, as a director and. officer of The alad Trust Com-oany, Greencastle, Indiana, and as a director cer of The Ladoga State Bank, Ladoga, Indiana. % Approved, together with a letter, also dated July 18, 1934, and approved by four members of the Board, to Mr. Stevens, Federal Reserve Agent at the Federal Reserve Bank of Chicago, reading as follows: permi: 7 era is inclosed for your files a copy of the Clayton Act zssued by the Board to Mr. F. L. OtHair of Greencastle, Baj:ana, to serve as director and officer of The Central National cz i Greencastle, as director and officer of The f v, Greencastle, and as director and officer 711 Ladoga State Bank, Ladoga, all of Indiana. bal.. 14 considering this application it was noted that the national co;:..aPpeared to be in good condition, the trust company in fair tli:tlin°11, and the Ladoga bank in poor condition; and that all ualics are reported to be under safe management but have boa to of director; characterized as weak and apparently dominated , )me eztent by the applicant. The reports of examination of tliesc ste Qtate banks reflected comparatively large holdings of supba4cial'd bonds, the depreciation in which represented a large of the estimated losses of each bank. iZr0a 2211 7/19/34 -24"It was also noted that Mr. O'Hair appears to be financially the report of examination of the national bank as of -arch 5, 1934, showing a direct loan in the amount of $8,050, of nieh $4,050 was classified as doubtful and $4,000 as a loss, the latter amount being subsequently charged off. His indirect 11...ability to this bank at that date amounted to $1,100 of which V00 was classified as a loss. The Federal Deposit Insurance Corporation report of examination of The Central Trust Company :s of November 29, 1933, indicated that the applicant's wife had si.loan of $10,000 in this institution secured by fifty-seven e, "4, 1:es of stock of the national bank, which loan was classified 0%,000 slow and $6,000 doubtful. It is reported that Mr. e. air admitted that this was really his own obligation. This :5amination report also showed a loan of $1,600 to the Syndicate rss CompanY, in which the applicant appears to be interested, Ch loan was classified as $800 slow and $800 doubtful. It gr,vuer appears that Mr. O'Hair had a contingent liability of 000 at the Fletcher American National Bank of Indianapolis, now closed, and that this liability has become actual of the maker's reported insolvency. The applicant's aPPear largely dependent upon the future of the three banks „7-4ved inasmuch as the collateral held consists largely of his "°ekl.loldings in these banks. "Notwiths tandin,. these 'facts, Mr. O'Hair, who has apparently L, been the of " dominating influence in each of the banks for a number as Years, is regarded by your office and the national bank examiner 111.1de-capab1e bank executive. The Greencastle institutions operate rc , er the same roof, the applicant's father, now deceased, is ' it elsted. to have been associated with these banks for years and olliaPPears that they are generally regarded by the public as a,air institutions and that the Ladoga bank is also regarded all"O'Hair bank. In view of these circumstances, the Board felt that it would be etetreferale to grant the permit in order to avoid any misunderbeet lugby the commnities which might prove detrimental to the the 4nterests of the bank, but it suggests that you discuss with aPPlicant and the banks involved the circumstances which the Board to be reluctant to issue this permit. tio4 The Board also desires that when you submit your recommendaflai as a result of your annual review of this permit, you report obl Y as to the progress made by the applicant in liquidating his iss-ations to these institutions and in effecting an improvement "Ills f inancial affairs." invnl to a.1)1:11. Letters dated July 18, 1934, approved by four members of the Board, Icallts for permits under the Clayton Act, advising of approval of 01.eir a Pplications as follows: 2212 7/19/34 -25Mr. Edwin Heap, for per-lission to serve at the same time as a colirector and officer of The First National Bank of Okeena, _keena, Ohio, and as a director and officer of The Merchants Balak and Trust Com-:any, West Harrison, Indiana, P. 0. Harrison, r. Prank J. Mulcahy, for permission to serve at the same time !! an officer of the Northwestern National Bank and Trust Company. Minneapolis, Minneapolis, Minnesota, and as a director of the Second. Northwestern State Bank, Minneapolis, Minnesota. r. Ilarry H. Sivright, for permission to serve at the same time ! 0 all officer of the Northwestern National Bnrk. and Trust Company fn inneapolis, Minneapolis, Minnesota, as a director of The Cent ventral National Bank of Minneapolis, Minneapolis, Minnesota, as an officer of The Fifth Northwestern National Bank of "Infleapolis, Minneapolis, Minnesota. Vollmer, for permission to serve at the same time as Georgan ,fficer of the Northwestern National Bank and Trust Company 7.;-1 -ti nneapolis, Minneapolis, Minnesota, and as a director of e Pirst National Bank of Breckenridge, Breckenridge, Minnesota. n. P. Newberry, for permission to serve at the same time as 1-1,ataarector and officer of The First National Bank of Gorman, Gor' Texas, and as a director of the Continental National Bank of POrt Worth, Fort. Worth, Texas. Approved. Letters dated July 18, 1934, approved by five members of the Board, alacaicants for -permits under the Clayton Act, advising of approval of til'aPplications as follows: 14.1 az%z, :'17 W. Armstrong, for permission to serve at the same time ulrector and office- of The Farmers National Bank of WatsonT;r3 Wa tsontown, Pennsylvania, and as a director of the Milton st and Safe Deposit Company, Milton, Pennsylvania. Mr. p aire P- Kerr, for permission to serve at the same time as a Westtr of the McDowell County National Bank in Welch, Welch, asCinia. as a director of the Berwind Bank, Berwind, West as a director of the Bank of War, War, West lrgitla. /4r. az a. • Louis McCarty, for permission to serve at the same time director of the McDowell County National Bank in Welch, 2213 YIN34 -26— Welch, West Virginia, as a director of the Berwind Bank, Berwind, West Virginia, and as a director of the Bank of War, War, West Virginia. : 1; crs 11* L. Page, for permission to serve at the same time as a 10,J-rector and officer of the McDowell County National Bank in :ldh, Welch, West Virginia, as a director and officer of the „!rwind Bank, Berwind, West Virginia, and as a director and v4ficer of the Bank of quinwood, quinwood, West Virginia. Ir-r* E. S. Thompson, for permission to serve at the same time a director of The Fayette County National Bank of FayetteP4Yetteville, West Virginia, as a director and officer 01 the Berwind Bank, Berwind, West Virginia, and as a director d officer of the Bank of War, War, West Virginia. Approved. There were then presented the following applications for changes 14 stont. of Federal reserve banks: htlif, L. i„ '''alens for ADDITIONAL Stock: DN-.4rict ro. Citizens National Bank & Trust Co. EliClewood, Englewood, New Jersey. reoples 114 Wiek Newrational Bank of New BrunsJ-rst Brunswick, New Jersey. rational Bank in Rockaway, II1 11°c1c'awaY, New Jersey. e liational Bank of Cohoes, Cdhoes, New York. eizl'eoples-Pirst National Bank of `4°°siok Palls, Hoosick Falls, New York. ro 6. e„..FELir field American National Bank, Trt, 4airfie1d, s'e Pirst Alabama. Ilational Bank &Trust Co. of TheVi„eicsblirG, Vicksburg, Bank,Mississippi. c(.d.i.eveland National levelatd, Tennessee 1),,pi:ztrict ro. 7. .41.e /11-st National Bank of Clarion, Cle.rion, Iowa. Shares 90 120 60 120 l2 510 6 30 39 75 2214 7/19/34 A taication," for ADDITIONAL Stock: District No. tillion Bank. 9 e4 lielena, Trust Company, •liontana. Cerlzercial Trust & Savings Ilitchell, South Dakota. Bank, Continued?, Shares District No. 10. Cordell National Bank' Cordell, Oklahoma. District No. 11. krznercial 1, Shreve Irational Bank in Shreveport, "I Rio 'port, Louisiana. r Da National Bank, , 4:he DellRio, -ton Texas. County National Bank of Denton, Denton, Texas. 4iret City National Bank of Floresville, Ploresville, 4.irst Texas. National Bank in Houston, 1101.1ston, Texas. Pirst National Bank of Rotan, .°teal, Texas. *4e Citizens Selar Lie,National Bank of S°11r Lake' Texas. District IT°. 12. ?irst National BankDelano, in Delano, California.. kb lications for District No SURREND/T- of Stock: The Pirst national Bank of Lyndhurst, qn., krndhurst, 1Tew 'e JerseyCarlstadt ilational Bank, Carlstadt, New Jersey. District 1T 3 Slz'th N ational Bank of Philadelphia, ladel-ohia, Pennsylvania. tistrict No. 4. The ho-ples 1,4 National Bank of Steubenville, u. enville, Stelhenville, Ohio. 4.ret National Bank in Wellington, hilington, Ohio. 120 30 3 3 90 12 6 15 Total 15 1,004 2215 7/19/34. -28- for SURP.ENDER of Stock: (Continued) District No. 10. Ci*aerce Trust Com*Dany, ICazsas City, Missouri. ' le Security National Bank of Clinton, Oklahoraa. District No. 11. Pirst liational Bank of Mercedes, /iercedes, Texas. Shares 600 56 15 Total improved. Thereupon the meeting adjourned. 41)Drovea: Chat Executive Committee. 656 15 1,406
@FedFRASER