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2314 A meeting of the Executive Committee of the Federal Reserve 13°411 was held in 'Washington on Tuesday, July 31, 1934, at 11:00 Et. mi. PRESENT: Mr. Mr. Mr. Ur. Thomas, Chairman of the Executive Committee Hamlin James Szymczak hr. Lorrill, Secretary Er. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary The Committee considered and acted upon the following matters: Telogram dated July 28, 1934, approved by two members of the Boa.rd, to Governor Fancher of the Federal Reserve Bank of Cleveland, r84dialp,' as follows: f :Your telegram July 27. Board approves for your bank, efispre immediately, commitment rate on industrial advances of a"tO a/0 per annum, in place of rate of 1/2% to 1% per annum pproved by Board on July 9, 1934." Approved. Letter dated July 26, 1934, from Lir. Sproul, Secretary of the l'etieral Reserve Bank of New York, and telegram dated July 27, 1934, *4", Stevens, Chairman of the Federal Reserve Bank of Chicago, both advising that, at meetings of the boards of directors on the dates stated, no changes were made in the banks' existing schedules of 111'tec, of discount and purchase. Without objection, noted with approval. Le44.a.anda dated July 26, 1934, from Ur. Paulger, Chief of the 141113i011 of Of Lass ci 'UXE31inatiOnS3 recommending that the temporary employment aire C. Atkins, Miss Helene L. Kearney, and Miss Frederica '051/34 -2G. Ritter, as stenographers in the division, be extended for an addi- tima thirty days, at the same rates of compensation as their original 641133Vment. The reconaendations were approved by two members of the BOard on July 27, 1934. Approved. Telegram dated July 27, 1934, approved by three members of the Board • to Mr. Sargent, Assistant Federal Reserve Agent at the Federal 70 Resel" Lank of San Francisco, stating that, subject to the conditions 15r"eribed in the telegram, the Board approves the application of "The ?hoe,: ▪ Savings Bank 6; Trust Company", Phoenix, Arizona, for membershill 4 r -al the Federal Reserve System and for the appropriate amount of stock . 111 the Federal Reserve Bank of San Francisco. Approved. Two telegrams dated July 28, 1934, approved by two members of the B to 1.1r. Sargent, Assistant Federal Reserve Agent at the FedReserve Darik of San Francisco, each stating that, subject to the co4dit. lcIns prescribed in the telegram, the Board approves the applica.of "The Bank of SP *sh Fork", Spanish Fork, Utah, and "The Pi -rst State Bank of Kellogg", Kellogg, Idaho, respectively, for membership i 11 the Federal Reserve System and for the appropriate amount of stock i 11 the Federal Reserve Bank of San Francisco. Approved. TeleCrom dated July 30, 1934, approved by two members of the : °4rds to 1:1r. Austin, Federal Reserve Agent at the Federal Reserve Of Philadelphia referring to the application of the "Shamokin 2316 '0i1/34 "Baxikang -3.-. and Trust Company", Shamokin, Pennsylvania, for permission to 'with . drevrimmediately from membership in the Federal Reserve System, 414 8tating that the Board waives the usual requirement of six months' Of intention to withdraw and that, accordingly, upon surrender Of the Federal reserve bank stock issued to the Shamokin Banking and Trust c,„ ' 111ParlY, the Federal Reserve Bank of Philadelphia is authorized cancel such stock and make a refund thereon. Approved. Letter dated July 30, 1934, approved by two members of the 13eard, t0 Bea Wil iams,f Federal Reserve Agent at the Federal Reserve uz ulevelmnd, reading as follows: "Receipt is acknowledged of Mr. Fletcher's letter of July .0 9s 1934, which is in reference to the Board's letter of May 12, ,.4, advising of an extension of tine to July 15, 1936, within 1h36..oh 'The Marengo Banking Company', Marengo, Ohio, ma - comply .h.the provisions of condition of membership numbered 17, which vorte:ades that the bank shall, within three months from the date th lts admission, reduce all excessive loans to amounts within !11111ite prescribed by the laws of the State of Ohio. It is 1,?6e!1, that all of the bank's loans have been reduced to amounts thln legal limits except the line of C. B. Smith; that the at21; 4n,113t to refinance this loan through the Federal Land Bank has i,' an yet been successful, although negotiations are still pondp;g3.that the bank's available capital funds are inadequate to ijmIt the elimination of the loan through charge off without r,'°einC a hardship on the institution; and that the bank has t171quested a further extension of time within which it may reduce 2.8.11 to an amount within legal limits. ext In view of all of the circumstances, the Board grants an 8annIsion of time to September 1, 1934, within which 'The Marengo me ; 7 1 11g Company' may comply with the provisions of condition of , 1,4 ere-4-13 numbered 17, and it is requested that you advise the Ipa33k accordingly." 1 ;. Approved. Letter dated July 27, 1934, approved by two members of the 13".rdstmv..._ - 're Peyton, Federal Reserve Agent at the Federal Reserve 231_7 7/31/t4 -.4- of L inneapolis, reading as follows: "Reference is made to your letter of July 12, 1934, transrtting the request of the 'State Bank of Belle Plaine', Belle .18.111e, 1Linnesota, for permission to invest approximately in repairs and additions to its banking quarters. lt In view of your recommendation and the fact that the inyestment of such an amount does not appear to be unduly large or improper or otherwise violate the spirit or purpose of condition TImbered 8 Prescribed in connection with the bank's application for membership, the Board interposes no objection to such investmont n an i: 6,500, and it is requested that YO advise amount not to exceed ,;; the bank accordingly. . 'It is suggested that you acquaint the bank with the Board's 716172 whici are known to your office with respect to making adoate provision for depreciation in banking quarters owned." Approved. Lotter dated July 30, 1934, approved by two members of the Board, to 1,.r. LicClure, Federal Reserve Agent at the Federal Reserve Ba'-uk of Ransae City, reading as follows: "Receipt is acknowledged of your letter of July 18, 1934, 31e1.,yegard to the activities of the International Trust Company, Denver, Colorado, in connection with the purchase and sale of so. "It does not appear that such activities are in violation of the Fede ral Reserve Act or the Banking Act of 1933 or that it is 0. e"arY for the Board or the Federal Reserve Bank of Kansas 'ltY t -ake any action at this time in respect thereto." Approved. Letter dated July 28, 1934, approved by two members of the Board, to Of Vialsh, Federal Reserve Agent at the Federal Reserve Bank Lalia_, reading as follows: "Reference is made to your letter of July 6, 1934, with its irlo 10 Th..„ , sures, regarding your discussions with the managemnt of Rio Bank and Trust Company, Del Rio, Texas, relative to th: dItIrge-eff or elimination of estimated losses as sholm in report ef examiri.tion of the bank as of March 28, 1934. tvat?-ed losses as classified by your examiner amount to approxiclEt::Y ,24,900, and agree substantially with the total of losses — 4-i ied by the State examiner in his report of examination as 2318 7/31/34 -5. of the same date, where as on the date of examination the bank had no surplus accou nt and undivided profits of only l,5OO. You report that the State banking department has taken the position that it will not require the bank to eliminate its losses, provided it sells at least 50,000 capital deben tures to the Finance Corporation. It is understood that the lec Reconstr onstru uction ction Finance Corporation has agreed to purchase debentures in that amount. Mr. Evans lette ' r of June 25, 1934, to the bank stated that the Federal Reser ve Board had taken the Position that a member bank' s published statements should reflect its true condition, and that all losses should promptly be eliminated, and requested the bank, there fore, to eliminate the losses estimated in the report of examination. Mr. Evans further stated that it would be satisfactory to the reserve bank for The 'el Rio Bank and Trust Company to eliminate the losses by any one of the following methods: 1. Throu gh an assessment upon, or a voluntary contribution by, the stockholders. 2- Through an outri ght purchase by the stockholders of the assets classed as losses. 3. Through a reduction of capital stock, after the sale of at least an equal amount of debentures to the Reconstruction Finance Corporation. your letter of July 6, 1934, you state that you are of the () Pinion that certain stockholders of the bpnl,are financially able to remove the bank's losses through a voluntary contribution, recommend that they be called upon to do so, but request an ,:eression of the Board's views as to whether or not you should .Laisiet tl upon this course of action. pi Capital notes or debentures issued to the Reconstruction title-nee Corporation are not a reser ve for losses, but are obliga0248 of the bank subordinated to the claims of depositors and sZner creditors. Such capital notes or debentures are issued in tores 'where the Reconstruction Finance Corporatio n cannot extend , r_jthrough the purchase of prefe rred stock. In States where :4?:erred stock is issued, a customary procedure is to issue sufso lent preferred stock to provi de an adequate amount of net thlruld capital and then provi de for the elimination of losses becough a reduction in common stock. It is not believed that, pi "se State laws do not make it possible for the Reconstruction itrace Corporation to purch ase preferred stock thus necessitatpol„Ihat capital aid extended by the Reconstruction Finance Cor: 14L'ion be in the form of capital notes or debentures, the banks set_hat State should be permitted to carry losse s in their as4,_thus reflecting an inflated capital position. lo_s "The Board has consistently taken the position that estimated al; shold promptly be charged off or otherwise elimi nated, coliclithat a bank's published statements shoul d reflect the true per,Z-L°n of the bank. If the State banki ng department does not -"L" a reduction in the common capital stock, and if the losses 1 2319 7/31/34 -6- 11 are not eliminated by purchase, contribution, or assessment, tIte bank, in order to show a true statement of condition, should charge off the estimated losses, and the bank's books mould ore truly reflect the impairment existing in its capital stle tir c or. "In answer to your specific question as to whether you Should insist upon the elimination of the losses through a volun"rY contribution, the Board feels that it is proper for you to 1.1,1sist that the losses be eliminated, but that the method of limination is a matter for determination by the directors of ej_bank, provided the elimination is accomplished in a satisfactory manner . "The principles set forth in this letter are applicable to other b anks in similar situations, and in this connection reference is made to your several letters of July 12, 1934, regarding 7,8-rictas banks miaich have not been required by the State banking rpartment to charge off estimated losses inasmuch as capital D_KItcs or debentures sold to the Reconstruction Finance Corporation u-re c onsidered by the State banking department as reserves for losses. Zp 6, "The financial statements inclosed with your letter of July 1934, are returned herewith." Approved. Letter dated July 27, 1934, approved by two members of the 130s4,3 tO Bkrik Ili-. Curtiss, Federal Reserve Agent at the Federal Reserve of Boston, reading as follows: " in repReference is made to the Board's letter of March 7, 1933, Bank ,Ard to the application of The Barnstable County National Massachusetts, for permission to exereiaa gd-lu i = 8;101.1ere..s, th The Board has been advised by the Comptroller's office tia6 a new report of examination of The Barnstable County Nae °11 , 1 Bank of Hyannis has just been received, in which the xelaner makes the following comments regard to application on file for permission to es-lalL a trust department the directors feel that at present iof minor importance and that it mould be better to devote all their time towards getting the bank on a firmer basis betalking on nem- responsibilities.' ite v In view of the foregoing information the Board will close to , ! 10 1?e in this matter. In the event the bank later desires sholTari : l authority to exercise trust powers a new application Approved. 2320 _7Letter dated July 30, 1934, approved by two members of the Board, to "The County National hank at Clearfield", Clearfield, Penntlivania, reading as follows: ."The Federal Reserve Board has given consideration to your aPPlleation for permission to exercise fiduciary powers, and gr nts you authority to act, when not in contravention of State or local law, as trustee, executor, administrator, registrar of socks and bonds, guardian of estates, assignee, receiver, cornof estates of lunatics, or in any other fiduciary capacity -Len which State banks, trust companies or other corporations which ome into competition with national banks are permitted to act Wider the laws of the State of Pennsylvania, the exercise of all ell rights to be subject to the provisions of the Federal Reserve et and the regulations of the Federal Reserve Board. This letter will be your authority to exercise the fiduciary granted by the Board. A formal certificate covering such authorizationt will be forwarded to you in due course." Z Approved. Letter dated July 26, 1934, approved by three members of the Board3 4. tdO the "National Bank of Monticello", Monticello, Illinois, l'eadirig as follows: a ,,,"The Federal Reserve Board has given consideration to your t441cation for permission to exercise fiduciary powers, and allts you authority to act, when not in contravention of State estiocal law, as trustee, executor, administrator, guardian of allates, and committee of estates of lunatics, the exercise of ' Re zuch rights to be subject to the provisions of the Federal serve Act and the regulCcions of the Federal Reserve Boord. por This letter will be your authority to exercise fiduciary a4ers granted by the Board. A formal certificate covering such hortization will be forwarded to you in due course. t , The Board feels that, if you are tendered any of the trusts e°11' held by the First National Bank of Monticello, you should of (leullY scrutinize their condition and should not accept any ' 41.6h trusts which, through their assumption, may be detrimenta,-L to the interests of your institution." g Approved. Lettor dated July 27, 1934, approved by two members of the 11(31 'cl, t0 IiicClure, Federal Reserve Agent at the Federal Reserve 2321 '051/34 -8of Kansas City, reading as follows: "Reference is made to your letters of June 2 and July 18, 19_04, in regard to the application of 'The Central National Bank r Cobus', Columbus, Nebraska, for full fiduciary powers. "The Board has reviewed the application and the data in connection therewith, from which it appears that the bank's capital and.surplus is only equal to approximately 6-1/2 per cent of its .ZPoeit liabilities and that its surplus is but 10 por cent of s caPital as compared with the minimum of 20 per cent which it :0-1 been the usual practice of the Board to require of banks receiving trust powers. ail° it is noted that the applicant ,, r115 le in a highly liquid condition, the Board feels that its 'claPatal structure is inadequate, as compared with the volume of and should be materially strengthened before the bank 15 itlt:d to assume the additional responsibilities of a trust .r& "Your letter of July 13, 1934 states that the bank has adYou that no further consideration should be given to its application in case favorable action thereon is dependent upon 71 increase in the capital at this time. The Board will, therefore, treat the pending application as being withdrawn by the '.21311eant bank and will close its file in the matter. Please ad5o the bank accordingly." Approved. Letter dated July 26, 1934, approved by three members of the to ttlid, t• O'Connor, Comptroller of the Currency, reading as fol- of 4, "In accordance with the recommendation of Acting Comptroller Currency Await, the Federal Reserve Board approves a rein the common capital stock of 'The First National Bank to "svalan', 14mnan, Georgia, from 250,000 to ;;125,000, pursuant Fej t Plan which provides for the use of the released capital toWith a portion of the bank's undivided profits account in k3T , Ii73. ting unsatisfactory assets in an amount not less than be_u,000, which assets, together with assets which have previously 8. 2 ,11 charged off are to be trusteed for the shareholders, all as 4:"L. forth in Mr. Analt's letter of July 13, 1934. The Board's approval is given with the understanding that the assets selected 4.ur elimination have the approval of your office." Approved. Letter dated July 30, 1931, approved by two members of the 2322 7/31/3 4 Board, to Lir. O'Connor, Comptroller of the Currency, reading as follows: "In accordance with the recommendation of Acting Comptroller of the Currency Await, the Federal Reserve Board approves a relAction in the common capital stock of 'The Citizens National 31841k of Decatur', Decatur, Illinois, from $250,000 to $100,000, u"uant to a plan which provides that the released capital shall used to eliminate approximately Q134,000 of unsatisfactory :lets and to increase the surplus account by approximately V4°0°00, all as set forth in 1,1r. Amalt's memorandum of July 16, 4934." t Approved. Letter dated July 27, 1934, approved by two members of the 'LI• to mr. O'Connor, Comptroller of the Currency, reading as fol- ic:vs 3 "In accordance with Acting Comptroller Amalt"s recommenda• °112 the Federal Reserve Board approves a reduction in the T°I fl°n capital stock of 'The First National Bank in Tonkamat, 1,f','4aual Oklahoma, from $35,000 to Q25,000, pursuant to a plan ;"4ch provides that the bank's capital shall be increased by the p:'111 °2 , 20,000 Class 'A' preferred stock to the Reconstruction .21ance Corporation and f,;17,500 Class 'B' preferred stock locally, that the released capital shall be used to eliminate a cor:813onding amount of unsatisfactory assets, all as set forth in 411alt's memorandum of July 18, 1934. H. In considering the plan under which the proposed reduction is t0 be effected it was noted that the aggregate amount of de13creciation unprovided for will seriously impair the bank's common tPital, even after giving consideration to the fact that securi_Y values have improved since the date of examination, and that 1faddition there will remain substantial amounts of assets clasled as slow or doubtful by your examiner. It was noted also that ta at the management of the subject bank was regarded as unsatisthet°rY by your examiner. It is assumed, homever, that you have toT conditions in mind and that whenever it becomes feasible prac `L.oui : ( 0) .b/( 0)yill obtain such further corrections as may be q 4 Approved. Telegram dated July 28, 1934, approved by two members of the }3eard t ' 14r. Newton, Federal Reserve Agent at the Federal Reserve 2323 7/31/34 1C of -10Atlanta, reading as follows: "Rotel July 26, 1934 regarding United Realty Company and Nashville Trust Company voting permits. In view of facts set 'erth in your telegram of July 26, 1934, the Board's ANCIGAR telegrams of July 25, 1934 are hereby amended to exclude paragraPh '2' of section ICI." Approved. Letter dated July 27, 1934, approved by three members of the 13°Ell‘c13 t° lir• Case, Federal Reserve Agent at the Federal Reserve Bank Of liew York, reading as follows: A "There is inclosed herewith a copy of a letter from irthur Watson, 55 West 42nd Street, New York, New York, requestcertain,_ information with respect to a proposed application '°? the Tropical City Ice Company, Inc. for a loan under the proof section 13b of the Federal Reserve Act. You will note that the Tropical City Ice Company, Inc., iTle or ganized under the laws of the State of New York operates 8 Plant at Ponce, Puerto Rico. Section 13b authorizes a Federal reserve bank to make loans thereunder only to 'an established .tdlistrial or comnereial business located in its district'; and c 13, therefore, the view of the Federal Reserve Board that no fl?11 loans may be made by a Federal reserve bank to businesses Lollfot located in any Federal reserve district, but located outside c. the continental United States. Accordingly, it will be appreprted if you will ascertain -whether the Tropical City Ice Comcr nY'.Inc., is a business not located in any Federal reserve 1,1strict and, if such is the case, it is requested that you advise Watson that a loan may not be made to that company under the , erIns of section 13b. If after consideration of this matter with ur counsel you are in doubt as to whether the Tropical City Ice 4,anY, Inc. is a business located in any Federal reserve distoT and you feel that the case is one upon which it is advisable wil ' ' I a„7 an expression from the Federal Reserve Board, the Board ce glad to consider the question if you will submit all per,'nent information together with an opinion of the counsel for Your batk with respect thereto." e Approved. Letter dated July 28, 1934, approved by two members of the d, to Lr. Logan, Deputy Governor and General Counsel of the FedOx'q Reserve Bank of New York, reading as follows: 2324 7/31/34 -11Receipt is acknowledged of your telegram of July 26, 1934, !.(Ivising that the Directors of the Federal Reserve Bank of New .10rk have authorized and requested you as General Counsel of the 00.11k to consult with Honorable Newton D. Baker concerning certain legal questions in connection with the agreement proposed by the Secretary of the Treasury with the bank regarding payments which the S ecretary is authorized to make to the bank under Section t3b of the Federal Reserve Act; that you have been in correspondence with Lr. Baker and he was in New York and conferred with you and with certain of your directors and other officers, and 4.,at, in view of the Board's letter of February 15, 1926 (X-4531), "Lie Federal Reserve Bank of New York will request the Board's approval of the payment of la.. Baker's fee should it exceed 0.,000. this connection, your attention is invited to the fact that the Board in its letter of February 15, 1926, requested that, 4before employing a special attorney whose services are likely to 1J,117°178 an expenditure by the Federal reserve bank in excess of : ' ,1 °°0 : the matter be submitted to the Federal Reserve Board with r°Tlest that the Board approve of the payment of compensation vc hlm up to a stated amount." Approved. Telegram dated July 27, 1934, approved by two members of the 13card, to lir. Viood, Federal Reserve A7ent at the Federal Reserve Bank (:)1 'St. Louis, reading as follows: 1144 "Your wire July 26. Referring your first question which is 4.,,erstood to relate to transaction in which financing institulon advances at least 20 per cent of working capital and Federal :rserve Bank the remainder as contemplated by first proviso of vo : l agraPh b of section 13b, there is in Board's opinion no legal sVection to Federal Reserve Bank selling to such financing intritlItien obligation evidencing amount reserve bank has advanced -013ylded such sale is without recourse to reserve bank on such Imak gatien. Also no legal objection to Federal Reserve Bank then a commitment to discount or purchase entire amount of the celZillal loan from financing institution at a later date provided, 20 „e ,c)ur " , financing institution obligates itself for at least ycj ier cent of any loss thereon as required by law. Referring :second question, no legal objection to Federal Reserve Bank cf '111g without recourse to financing institution entire amount or nllgation discounted for or purchased from such institution co 'du Federal Reserve Bank then making a commitment again to discbl! i °r Purchase such obligation provided financing an institution reo ?Ates itself for at least 20 per cent of any loss thereon as Peered by law. Advisability of any such action on part of eral Reserve Bank is question for consideration of directors 2325 -12ft and officers of your bank." Approved. Letter dated July 27, 1934, approved by two members of tho 13°ard, to ivir. Thomas R. Dwyer, President of The First National Bank Bald Trust Company of Rochester, New York, reading as follows: "This refers to your letter of July 11, 1934, inclosing a ! ()PY of a Demand served upon your bank by Lr. Lartin 11011, Trustee in Banla-uptcy of the Long and Shafer Company, Inc., demanding t you treat an account standing in his name as Trustee in trruptcy as an interest-bearing savings account. You state that it is your understanding that the funds in such account are _ e proceeds of the liquidation of L:eng and Shafer Company, Inc., ;nd that it does not appear to you that the funds in question are 0. , 114; 1_8 accumulated for bona fide thrift purposes within the meaning l'he definition of savings deposits contained in Section V(a) of the Z Federal Reserve Board's Regulation Q. From the information which you have submitted, it does not appear that the deposit in question consists of funds accumulated bona fide thrift purposes, and, if not, it may not properly be ,c classified lassified as a savings deposit for the purpose of paying intfest v thereon. However, the Board believes that the question Alther deposits may be considered funds accumulated for bona th,,,e thrift purposes so as to constitute savings deposits within eel ;meaning of the regulation is one upon which no general rule lun„'? Prescribed and that each case must necessarily be determined -" the basis of its particular facts. The Board also feels that as to whether deposits may be regarded as funds accumula'Eni°118 ze ?u, for bona fide thrift purposes should be considered by the l,cer banks in the exercise of their best judgment and in the iet of the provisions of the law and the regulation and that tni, wculd not be Tiracticable for the Federal Reserve Board to under0,76 to determine such questions as they may arise in individual e:!ses with member banks when deposits are offered to them. Howtgr, the Board has set forth in the inclosed statement some of ter c onsiderations which it feels may possibly enter into a dede Ill-illation of the question whether deposits constitute savings tj csits within the msning of Regulation Q. It is hoped that y;;!! general statements set forth therein may be of assistance to classifying the deposits in question. co , In the event you have not already done so, you may wish to de"elder suggesting to Lr. L:oll the possibility of converting the qt( ) 11?it in question into a time deposit as defined in Regulation sps,,tch is payable more than thirty days after date or with re-' to which thirty days' notice in writing of intended with- r 2326 7/31/34 -13- It A uraws.ls is required. If this were done, of course, interest might be paid on the deposit in accordance with the provisions of the regulation." Approved. Letter dated July 26, 1934, approved by three members of the - + -0 rar. Austin, Federal Reserve Agent at the Federal Reserve 13exit Of Ph iladelphia, reading as follows: "Receipt is acknowledged of your letter of July 6, 1934, !Irl°13ing a copy of an opinion by your counsel to the effect that Payment by the First National Bank of Birdsboro, Pennsylvania, of the premium on a surety bond furnished to secure a deposit payOn demand made with that bank by the directors of a school .1strict would constitute a payment of interest on such deposits !-_11. violation of the provisions of section 19 of the Federal Reserve Act which prohibits the payment of interest by a member culank, directly or indirectly, on any deposit which is payable on teTalld. This opinion was rendered in response to a request conin the Board's letter of March 22, 1934, with which was 1,-4-Losed a copy of a letter from the First National Bank, Birdsboro,0, ennsylvania, dated February 19, 1934. Re Upon the basis of the information submitted, the Federal b serve Board finds no reason to differ with the opinion expressed counsel for your bank with respect to the matter; and, accordit will be appreciated if you will advise the member bilk co,r?Ply to its inquiry on the subject in accordance with his ha"elusions. In this connection, it is assumed that your counsel dee given or will give consideration to the question whether these 02"its may be deposits of public funds made by or on behalf of • Y State, county, school district or other subdivision or munic,, P, e'lltY with respect to which payment of interest is required ;;T: State law and, therefore, excepted from the prohibition of one, 1°11 19 of the Federal Reserve Act upon the payment of interest ueposits payable on demand." T Approved. Letter dated July 27, 1934, approved by two members of the 13°41sci' CO LI.. Austin, Federal Reserve Agent at the Federal Reserve 441C of Phil adelphia, reading as follows: refers to your letter of June 28, 1934, in regard to er the a national bank of savings accounts solicitation In violation of the provisions of the Board's regulations. It 2327 7.4'34 2-8 assumed that you refer to the Board's Regulation Q, relating O tITI Payment of interest on deposits. The Board understands that the bank in question has engageda firm of solicitor's whose representatives make a house to nouse canvass of prospective depositors, explain the services of the -ank to such persons, and attempt to induce such persons to urchase an electric clock or other article for the price of n "•v0. The representatives provide each such purchaser with a card instructing him to go to the bark and open a savings account, 411(13 if the balance in any such account which may be opened is 'lop or more one year from the date of its opening, the bank credl-cs to such account an amount equivalent to the purchase price Paid by the depositor to the solicitor for the article. In addi'Ion to such credit, the bank also pays interest on the account at the regular rate. t. "Although the Federal Reserve Board feels that the solicita1°11 of accounts by a member bank in the manner described is an 111.1desirable practice and that such buying of business should be ."Jscouraged, it does not appear that such practice is in viola_1°11 of the provisions of section 19 of the Federal Reserve Act or of the Board's regulations relating to the payment of interest On deposits. Since the donation made by the bank is a fixed r ;unt and does not vary with or bear a substantially direct relatIs n to the amount of the depositor's balance, it is believed 111T-t the solicitation of accounts in the manner described does I°.t involve an indirect payment of interest within the prohibition of sal •d section 19 or of the Board's Regulation q." Approved. Letter dated July 27, 1934, approved by two members of the to LIr. O. L. McDonough, Cashier of The National Bank of Clays11'14 'ClaYsville, Pennsylvania, reading as follows: of the Your letter of June 8, 1934, addressed to the Comptroller Currency, regarding the renewal of matured certificates of deNsit has been referred to the Federal Reserve Board for rePly. eu , It is understood that in view of the fact that many of the claZL'eMers of your bank are unable to get into town on the exact to' e i_ Of the maturities of their certificates of deposit, you wish del3'e advised whether you may lawfully renew a certificate of sit prior to its maturity, dating the now certificate as of the thatdate of maturity of the original certificate. It is noted are YoU state that all certificates presented after maturity 041,rnelwad as of the date presented, and that interest is paid co the date of maturity of the original certificate. uPon the basis of the information submitted it appears that 2328 7/31/34 -15the e practice which you suggest involves merely the making of a Ifau contract of deposit with respect to the funds in question which Is to take effect on the date of maturity of the original certificate and that no part of the funds evidenced by the original cerTricate is withdrawn until the maturity of the renewal certificate. til?re is no provision of law which would preclude the adoption of 18 procedure and the Federal Reserve Board has no objection t hereto." Approved. Letter dated July 30, 1934, approved by_two members of the 481rd, to Lr. George R. Craig, Pittsburgh, Pennsylvania, reading as foliol‘mt "Receipt is acknowledged of your letter of July 5, 1934, in i. eth You state that the regulations of a national bank which TPP'Y to savings deposits provide, among other things, that 'The :".1-st interest which has been credited to the account may be Althdrawn at any time without notice, upon presentation of the PRSS book' , and that, 'If interest is not withdrawn, it will be dited to the account and compounded, regardless of whether or yoL. the Pass book shall have been presented for entry therein'. ,u request to be advised whether the payment of interest on the e s_art of a savings account which represents interest credited on account at the expiration of the last preceding interest Period yeriod is lawful. es , "If the part of the savings account which represents interof ' Pxlieviously credited on the account conforms to the definition ti a savings deposit' which is contained in the Board's Regulab °11 q3 interest may lawfully be paid thereon, even though the 021k PernitS the withdrawal of such part of the account on demand. 1111 ,svisver, one of the essential attributes of a 'savings deposit' J-cluithat the 'depositor is required, or may at any time be rethe bank to give notice in writing of an intended not less than 30 days before a withdrawal is made'. of 71ew of that requirement, the payment of interest on a portion subai. savinCs deposit for any period during which such portion is 1111,7eet to Payment on demand COMBS within the prohibition of the against the payment of interest on any deposit payable on n n "APPlying such principles to the instant case, it does not s4eTear that a depositor is required to give, or that the bank reIlot.78 till) right to require, notice of intended withdrawal of reb:ess than 30 days in respect to the part of the account which rj:esents the last interest credited thereto, and if the amount wiTsenting the last interest credited to the account may be drawn on demand, the payment of interest thereon for the a „ 2329 VW34 -16- 'period during which it is so subject to repayment would constitutea payment of interest on a 'deposit payable on demand' and would be unlawful." Approved. Board 111013.d, Letter dated July 27, 1934, approved by two members of the 4. 1.1r. Wallace, Counsel for the Federal Reserve Bank of Richreading as follows: This refers to your letter of June 5, 1934, addressed to Board's General Counsel, inclosing a copy of a letter written by uy you to the First rational Bank of Holly Hill, South Carolina, :14ith respect to the payment of interest on deposits of funds held by the county treasurers of South Carolina as sinking funds for various school districts. "It is noted that you have advised the member bank that the (11)13(3 in question could not be treated as savings deposits but that they might be accepted either as time deposits, open accounts, .7 as time certificates of deposit, and that, if so accepted, interest might be paid on such deposits at a rate not exceeding 3%. as provided in Regulation Q. You also advised the bank that, in Y°11r °Pinion, the payment of interest on such funds is required under the 1 w of South Carolina and that, therefore, such funds , 11,11):.Y be accepted as demand deposits and that interest may lawfully 0 1 Paid thereon. It is understood, however, that you -wish to be trised of the Board's view with respect to the question whether to ,PaYment of interest is required under State law with respect wITI funds in question. It appears that Section 5365 of the Code of Laws of South " f°1ina for 1932, which you cite in your letter to the bank, re.cgtres the treasurers of the counties in which the school districts O the are situated to deposit all money in their hands belonging co , sinking funds of the various school districts in their of—,;ties in some saving institution or bank approved by the Board ustees of the school district 'at the best rate of interest that dir call 130 obtained * * * and the said treasurers shall, at the ection of the Board of Trustees, change the place of deposit shZ1Y times Provided, that in making such deposit preference or given to a bank, or banks, located within the township derecnultY, in which such school district is situate.' It is u11rel8t°°d that there is no other provision in the State statutes srXinC to the payment of interest on such funds. After considQuo ::°11 of this question on the assumption that the deposits in 130a8':ion consist of public funds of the school districts, the yourVinds no reason to differ from the conclusion reached by seb flat the payment of interest on deposits of sinking funds of '4°01 districts in South Carolina is required under the law of 2330 v31/34 -17- "that State, and that, therefore, interest may laufully be paid bY c.t member bank on such deposits, even though the deposits are Payable on demand." Approved. Letter dated July 28, 1934, approved by two members of the Board., to hr. O'Connor, Comptroller of the Currency, reading as foliolm: Jul I.:This refers to the memorandum from Li. . . F. G. Amalt, dated Y .L6, 1934, in regard to whether a certain deposit in the iOfl National Bank of liarquette, Yichigan, may properly be clas3J-fled as a 'savings deposit' within the meaning of Regulation Q. . "Prom the facts submitted it mould appear that the deposit question consists of funds of a business enterprise which are teMP0rarily idle and that such deposit comes within the principle et forth in the second sentence of the fifth paragraph of the 2! I d's letter to the Comptroller F under date of April 28, 1934, relative to the administration of the requirements of Regulation in respect to savings deposits. However, there may be other ; j !kets mtich are unknomn to the Board and mhich mould justify a 12.fferent conclusion, and the Board feels that the information submitted is not adequate to enable it to determine the question at th is tine. as "The question whether such deposit may be properly classified f1,2, 1 savings deposit is a doubtful one, and, consequently, if the 4:"us mere deposited as a savings account in good faith and not an attempt to evade the prohibition of the statute against the , 41 ,_ent of interest on deposits payable on demand, the Board will Object to the payment of interest on such account until such ell "as the Bank may be notified that the deposit may not be so illas.?ified. It is assumed, of course, that the deposit complies to 114 respects with the requirements of Regulation Q applicable consrings deposits, with the possible exception that it may not s't of funds accumulated for bona fide thrift purposes. ,, Inasmuch as an examiner ordinarily has an Of intimate knowledge e situations existing in his particular jurisdiction, it is felt quenjhat he is usually in a better position to pass upon close tlons of this kind, which depend upon a full understanding of 411 be i he facts of the case, than the Federal Reserve Board would faetil acting upon a brief and perhaps inadequate statement of v.v.:* Accordingly, it mould seem desirable that the examiners careful consideration to auestions which may arise in the oxf banks as to whether funds are accumulated for bona ezd t,"rlft Purposes, in the light of the Board's Regulation Q ref "e Principles stated in the Board's letter of April 28, 1934, erred to ab ove .It T Approved. 2331 7/31/3.1 -18Letter dated July 30, 1934, approved by two members of the Board, to Await, Deputy Comptroller of the Currency, reading as follows: , This refers to your memorandum of July 23, 1954, in regard tO whether certain deposits made by The Northwestern Loan and Trurit Company in the Brown National Bank of Kenosha, Viisconsin, 1 1 1 Properly classified as 'time deposits, open accounts'. , Although the exact meaning of the written contract evidencliag such deposits is not entirely clear, it appears that the ' 8 reclilent is in the form of a continuing contract covering domade from time to time, from -which withdrawals are perTitted from time to time. It is understood that it is the in:frit of the agreement that no deposit made under such agreement flay be withdrawn prior to the expiration of a period of thirty daYs from the date the deposit is made; that in the event withj7141 is not made of a particular deposit at the end of the b day period from the date of such deposit, such funds shall e considered as having been redeposited for another thirty day Period, and likewise redeposited for each and every thirty day period thereafter until withdrawal is made; and that no deposit lay be withdrawn except at the expiration of a period of thirty Ye ' ttor multiples thereof, after the date of such deposit. If the foregoing interpretation of the agreement is proper, ' lc the vievre the Board that deposits withdrawable only at timetimas and under the conditions stated may be classified as :le deposits on which interest may be paid in accordance with th!tProvisions of the Board's Regulation ;. however, it is felt may be advisable to revise the agreement so as to clarify -Lntent and indicate clearly that deposits made thereunder , subject to withdrawal at the times and under the conditions e taated.” Approved. Letter dated July 26, 1934, approved by three members of the 13°41.d, to 1.-x. Austin, of the Federal Reserve Bank of PhilaclelPhia, reading as follows: llows: 1),,ur letter of Juno 23, 1934, to Mr. Hamlin with reference t° the the ,,'°ardi s letter X-7848a, dated April 4, 1934, regarding J-icY to be followed with respect to the charge-off or ' ef nation of depreciation in securities as shown in the reports ere ! xamination of State member banks has been carefully considu the Board. the charge-offs outlined in the Board's letter are OgI4'19 ' ,J./tic/15,w 7Aa/3 -19_ , E,reater than have been prescribed as a rule for national banks In current operation and by some State 13anki.1g Departments, Particularly the Pennsylvania Banking Department, they are the same as those Prescrib ed for the admission of State banks to men1)er 14 and they are not greater than those frequently prescribed ?..n connection with the reorganization, rehabilitation, or reopening of,national banks or in connection with the conversion of °tate banks into national banks. In fact, in many of these °aces the Comptroller of the Currency requires the elimination of practically all criticized items. The Board feels that the 1) 3elleY set forth in its letter is sound and that, while it mould e desirable for all banks, member and non-member, to be subject to the sarre requirements regarding charge-off or elimination of ?t?..mated losses and depreciation, the Board's primary responsi-111tY is for State member banks and that it is fair to prescribe 1?r them the same standards prescribed for State banks for admis810n to membership in the system. This point has been the subject .euf certain correspo ndence in the past in which the Board has taken position that whenever possible it will endeavor to bring /yl nobservance of similar standards by existing members. mi flol?Itar.irc out that Policy, example, in connection with for votlng . permits to holding company affiliates the Board ordinarily Prescribes as a condition that the subsidiary banks shall make .13 !fge-02fs corresponding to those required for admission of State cLal to the system. a, /It is recognized th.At in some cases the Federal reserve aloInts will meet special situations which will require diplomacy tact and that it may not be practicable in all cases to obt 111 full compliance with the Board's policy outlined in the letter X-7848a. lor these reasons the letter did not Proscribe b() that the standards outlined must be met in all cases deviation, but stated rather a general policy which it ! 8 desired shall be followed as far as possible. It is hoped, ' cZertheless, that the various Federal reserve agents will use haerY effort, diplomatically, tactfully, and yet earnestly, to why° the State member banks in their districts follow this policy iiieh is believed to be sound and which will result in thepub11,,shed statements of conditions of the banks reflecting more nearly the true condition of their assets." t ;M Approved. 1304rd, Letter dated July 30, 1934, approved by two members of the te aoxton, Chairman of the Federal Reserve Bank of Rich- '141d, reading as fol1ow-52 "The oard has reviewed the report of examination of the Federal Reserve Bank of Richmond made as at the close of business 2333 v31/34 -20- "April 28, 1934, copies of which were left with you and Governor Seay. "On page 12 of the report the examiner calls attention to a circular sent by the Reserve Bank on harch 5, 1934, to all member ?anics in the district advising them that your Executive Comrittee had decided that it would be desirable to have future borromings from the Reserve Bank made in the form of the member banks' own II°tes secured by eligible paper and requesting that member banks nake their future borrowings in that form rather than in the form re discounted notes. It will be appreciated if you will advise e Board with respect to the present requirements regarding the lUse of member banks' collateral notes and as to the reaction of "le member banks to the Reserve Bank's circular of March 5, 1934. tt, After the report mid this letter have received the considation of the board of directors of the Federal Reserve Bank, the Board would appreciate advice from you as to what action has been 'd-4en or mill be taken on the various matters discussed." .0,f Approved. Letter dated July 30, 1964, approved by two members of the j3c4ard to 1_ '0 "Jonnor, Comptroller of the Currency, reading as followe I It 4eCeipt is acknowledged of your letter of July 9, 1934, etner with the correspondence attached thereto, in regard to tihe Taestion whether a national bank may lawfully make charges 11 , 1 exce.ss of the limit fixed in the first paragraph of section ' 0 - of the Federal Reserve Act for collecting checks drawn on lat-oFt-town banks. In a letter under date of February 12, 1927, the Federal Reserve board expressed the view that 'national banks have the • Vt to make reasonable charges not to exceed 10g per hundred 011J-J.ars or a fraction thereof for the collection or payment of lactrks, the only limitation being that no such charge shall be in ,. 1"ainst a Federal reserve bank'. Subsequently, in a case tic:''Ich it appeared that certain member banks were in the practhe; .- °f makin,°...: charges in excess of 10 per a00 or fraction de * e°f for cashing out-of-town checks when presented by nonsX1litor s, the Board ruled that 'Under the express terms of 13 of the Federal Reserve Act, a member bank may not in thLne.4.r flake a charge in excess of 10 per i100 or fraction. • based on the total of checks and drafts presented at any pod 1711e, for the collection or payment of checks', and that 'the • make eral Reserve Board is not authorized to permit member banksto chargeS in excess of that amount'. ule_ that t3 in such rulin7s, it is the view of the Board law limits the amount of charges which may be made by a tO 4 2334 7/2a/34 -21- Motional bank for the collection of checks drawn on other banks. inver, when checks handled for collection are drawn on non-par , a4k8, any exchange charge which may be made by the drawee bank 4er the . Payment of a check need not be included when computing the charge which may be made by the collecting bank under the r P e:Ins of law to which reference has been made, since such an charge rnnot properly be considered a charge made by the c ollectin r Approved. Letter dated July 30, 1934, approved by two members of the ii°e'rd 'to the Attorney General of the United States, reading as fol- t . "There is inclosed herewith an excerpt from a letter received 1O Federal Reserve Board from the Assistant Federal Reserve cit at tho Federal Reserve Bank of Philadelphia, which raises _l question whether a person authorized to engage in the business vi receiving deposits, but not now engaged in accepting any deP l its, is required by section 21(a) (2) of the Banking Act of to submit to periodic examination and to make and publish vcrio ic reports of condition. t. it is the view of the Federal Reserve Board that said seca ( (3/1 21() ‘2) does not embrace a person who has not been engaged, June 16, 1934, 'in the business of receiving deposits subject totc! sl cateueek or to repayment upon presentation of a passbook, certifi,1_ -° of deposit, or other evidence of debt, or upon request of the , , , :positori, even though such person was engaged in such business .) :111.0br to ° that date. Consequently, the Board feels that the fact that is authorized to engage in such a business is not „,'lcient to bring such person within the scope of the provisions el 4.1:zssion, and that the person who is the subject of this who is not presently engaged in the business of remai lring dePosits is not required to submit to examination and to tind Publish reports of condition. liar:Dyer, since an expression of opinion by the Board would not youjTevent a prosecution for violation of such provisions if above"ePartment should take a view contrary to that expressed yo„Ire2 it will be appreciated if you will advise the Board whether e\oncur in its construction of the provisions of said section (a st )(2), and whether it is necessary for Spiridion Furcich of ptleon, Pennsylvania, to submit to examination and to make and flat 18h Periodic reports of condition so lon7 as such person does (2)j;ceept deposits of the kind referred to in said section 21(a) r Approved. 2335 7/31/34 -22Letter dated July 27, 1934, approved by three members of the Board, to . Lr. liewton, Federal Reserve Agent at the Federal Reserve Bank 0f Atlanta, readin as follows: "ieference is made to your letter of July 3, 19,4, concernin g -ae scope of examinttions to be made of private banks or bankers under the provisions of Section 21 of the Banking Act 1933. You state that in many instances private bankers who -ave expressed a preference to be examined by the Federal Reserve Bank are engaged in other agricultural, mercantile, or Tanufacturing activities, and that, while they probably attempt O segregate the asscts pertaining to their banking operations, fl.e) lam of the State of Georgia are such that, in case of inSolvency, all assets would be pooled for the benefit of all .ejeditors, and the depositors, therefore, would have no lien on so-called banking assets. In the circumstances, you request 0.113truetions as to whether the examinations should cover all t!!Gts and liabilities of the private banker, or only those per" ning to the banking operations. he Board is advised that the laws of the State of iiew York r eequire every private banker to invest in the business permanent ol ftPital in stipulated amounts, and provide for the segregation capital and of deposits received and the assets acquired thr8uch 804.0ugh the investment of such funds, and, further, that the asof ' s so acquired will be first available to satisfy the claims cutdePositors. Similar laws are said to be in force in Connectiz erch perhaps, other States. Where such laws exist, it would s,tat the examinations required under the provisions of balTibr?en 21 of the Banking Act of 1933 should be confined to the operations of the private banker, whether or not he has prrr aLss et,s and liabilities. Where the banking assets of the a4 Ilate banker, however, are available to satisfy the claims of dj, and all creditors, and in the event of insolvency unsecured torsitors would be on an equal footing with other general credias,a1 it muld appear that, in addition to an examination of the oz.r's and liabilities arising from the banking operations, the ttj_na.tion should include such investigation of other assets u li abilities as is necessary to determine the true condition °f the bank. the Board's letter of June 26, 1934 (X-7936) it was stated port- that inasmuch as, under the terms of Section 21, all re°f condition are to be made and Published at the same times ;manner nn and with like effect and penalties as are Yr1°.1%e(71T law in respect of national banking associations tio , etinC business in the same locality, such reports of condiTaav'In all cases, and without regard to the authority -which /11824 ' the examinations referred to in Section 21, should be 4->c1.1 t_it 111 7/31/34 made to the Comptroller of the Currency and published in the same manner as reports of condition of national banks. In the ci rcumstances, it is within the power of the Comptroller of the Currency to prescribe the form of such reports. Presumably, the Purpose of examinations under the terms of the section is to dothe true condition of the bank, verify the accuracy of such reports of condition as may be made, and disclose any irregularities that may be subject to penalty. Therefore, the matter has been discussed with the office of the Comptroller of the Currency to ascertain the Comptroller's requirements with respect to the form of the report of condition by private bankers, and with a view to the adoption of reasonably uniform procedure in the examinations conducted by the Comptroller of the Currency alla the examiners for the Federal Reserve banks under the terms Of Section 21. In connection with the call for reports of condition as of JI-Inc 30, 1934, the Comptroller forwarded to private bankers the . 13 ;-1'.'4 form (Form 2130 - Call Ko. 340) that was forwarded to na;',-°nal banks. This form includes the items 'Other assets' and Other liabilities' and provides for the itemization of such assets-, and liabilities under schedules '12 and which are not a statement to be published. It is probable that a Parteeorfo-tf;heinstructions will be forwarded to private bankers by al41!.Comptroller at the time of the next call for reports of cona"len, advisine; them that they should list under the item 'Other 038ets t all assets other than those pertaining directly to banking ra ions, and under the item 'Other liabilities' all liabilities Other than those pertaining directly to bankdng operations. Some 'si°73. may also be made to provide for a statement of the outaid,,..4 fox,' 17prth of partners in cases involving partnership. The form co reports of condition is revised from time to time, and, of rou se, the Comptroller may find it necessary or desirable to ofIrlso the general form or to prepare a special form for reports plinte baalkers in connection with future calls. Comptroller of the Currency concurs in the Board's opiniOn that examinvtions under the terms of Section 21, where doareZ on the same footing as other general creditors, t Iljd include an examination of the assets and liabilities perai,"-kng to the banking operations of the private banker in the ')a.Me manner and to the samc extent as if an examination were bemade of a national bank or a State member bank, and that the ner should conduct such further investigations or examinat as may be necessary to satisfy himself as to the accuracy of cot:Y statements made with respect to other assets and the otale n.?" of the values represented thereby, or the extent of iabilities of the private banker. S stated, the Comptroller of the Currency may find it co, IJ Elr'd or desirable to prescribe special forms for reports of may tion of private bankers, and, likewise, future experience Indicate the necessity for more detailed and exhaustive Z I\ -23- 2337 7/31/3z1 -24, e-40-minations. In any event, all examinations under Section 21 () the BankiLg Act of 1933 should be conducted with the fact in 1d that the interests of depositors are inextricably intermingle with those of all other creditors v;herever such interests are not specifically segregated by law." Approved. Letter dated July 27, 1934, approved by two members of the k)ard, to 1,4.. h. ward, Cashier of the 1;ational hank of Flint, Plitt, Lichigan, reading as follows: th ihis refers to your letters of June 1 and June 27, 1934, reGarding the necessity of depositing in the trust department of Your bank securities approved by the Federal Reserve Board to seec, re a certain savings deposit in such bank. You state that _rter such deposit vas made the depositor requested the trust cateiyartment to act as agent for him in the handling of certain t fairs, but that the trust department has no authority except Ite bt as agent solely under the instructions of the principal. t, Section 11(k) of the Federal Reserve Act provides in part '* * Funds deposited or held in trust by the bank awaitinvestment shall be carried in a separate account end shall flot be used by the bank in the conduct of its business unless it : • 111 first set aside in the trust department United States bonds se Other securities approved by the Federal Reserve Board.' Subti etical 1:)) of Section of the Federal Reserve Board's RegulationI') provides that funds received or held in the trust departe• nt Of a national bank awaiting investment or distribution may be deposited in the commercial department or savings department the Lank to the credit of the trust department, provided the first delivers to the trust department certain kinds of securif; as collateral. the B t will be noted that these provisions of the Act and of vest °Erd's regulation apply only to trust funds 'awaiting in jaent or distribution'. It is understood that the funds hold s department of your bank were deposited therein tzia:o1;setsoanielg appointment of the trust department as agent for the lepositor, and, if the agreement between the depositor and be .trust department provides that such funds shall continue to 0t1111117ested in the savings department until the depositor directs eL t e? r iss, it would appear that such funds should not be regarded nieali : - tist funds awaiting investment or distribution within the Act lng of the provisions of Section 11(k) of the Federal Reserve r qUired of the Board's Regulation F and that your bank is not retrust '° deposit United States bonds or other securities in its department to secure such funds. 2338 7/31/34 -25- "Your statement that the bank holds in its possession the Pass book evidencing the deposit referred to raises the question Whether the retention by the borOr of the pass book comes within .he scope of the inclosed ruling by the Board in Which the view le expressed that a deposit in respect to which the pass book or other form of receipt is retained by a berk or by an officer, "Ployee, or agent thereof, rather than by the depositor, does not comply with the requirements of Regulation Q in respect to 88"."nge deposits. However, the information which you have sub. 1b-Itted is not sufficient to enable the Board definitely to de;lane the question at this time. Consequently, if you desire tIlf Board to consider mhether the retention of the pass book in a: Situation to which you refer is permissible under the law nd the Board's regulations, it is requested that you furnish e 13c)ard with copies of all documents evidencing the agreement between the bank and the depositor, and submit such other inferas may be pertinent to the inquiry. If so desired, names amounts may be omitted from copies of any documents furnished 60 the Board." Approved. Letter dated July 26, 1934, approved by three members of the Boaxla to lir. Wood, Federal Reserve Agent at the Federal Reserve Bank Or St. 41ais, reading as follows: heference is made to your letter of July 17, 1934, regardexaminations of State member banks in connection with the leicluired certification to the Federal Deposit Insurance Corporacr,". and requesting authorization to make such examinations `'ra%cing October 1, 1934. octet The Board feels that reports of examination made as of er 1, 1934, or subsequent thereto, may properly be used as %basis for certification in connection with applications of poe: ! ;e member banks for the purchase of stock in the Federal Decos ' t Insurance Corporation prior to July 1, 1935, provided, of betIrs°, such reports indicate that a thorough examination has 1 made and fairly represent the condition of the banks at the IV of certification. Before making final recommendations with liZrd to certification, therefore, it will be expected that you ar -L review the reports of any examinations made prior to Janu'1935, for the purpose of determining whether, since the daLl or ii°f examination, there has been any change in the condition doub2° bank which mould render the question of certification In case of doubt, either as to whether the condition of cori7, bank as reflected in the report of examination warrants liication to the Federal Deposit Insurance Corporation, or vale,t'ller there has been any subsequent change in the condition of /ig t4.!1 2339 7/31/ 4„ -2611, the bank which would raise a ouestion as to whether the assets ?F the bank are adequate to enable it to meet all of its ties to depositors and other creditors, another examination ShOUld be made to serve as a basis for the required certification. It is assumed that the program of examinations will be so arranged that wherever possible examinations of banks dependent uPon seasonal liquidation will be made subsequen t to the liquidation period." Approved. Letter dated July 27, 1934, approved by three members of the Board, +, -" idr. Peyton, Federal Reserve Agent at the Federal Reserve Bank of Linneapoli s, reading as follows: , heference is made to your letter of July 12, 1934, inclos, copies of a farm which it is proposed that your examiners will ash all officers of State member banks to sign, while exare in progress, for the purpose of developing, inferba'ion with reference to loans to executive officers of member iianks subject to the provisions of Section 22(g) of the Federal erve Act. You request connent with regard to the form itself Your Policy in requestin that the form be completed. g ,, is It assumed that the form is not expected to develop all Of banc , ' -° information needed in connection with loans by a member of 't° its own executive officers, but to disclose the existence ti such loans which may be made the subject of further investigab °" Use of the form should also facilitate the determination LYour examiners whether loans to the executive officers by a_aer banks have been duly reported to the chairman of the board equired by Section 22(g), and with these statements available other informati on as may COM to your attention through extl;unation of other banks or other official sources may be checked, be s reduoin the amount of correspondence that otherwise might required. It is evident that the first an of such statements filed by icer may contain information that would not be necessary in the:tee-Lion with subsequent statements. Therefore, it is suggested forms be used, one for the initial statement, and the other re forsubsequ ent statements. The inclosed copies have been od in accordance with this suggestion. are self-explanatory, except that inasmuch a zott ullicer may have created and extinguished indebtedness to 22 (el: or nonmember banks since the effective date of Section edtt; ' ,'') and may, in the future, create and extinguish such indebtriellt-S from time to time between the dates on which such statethe s (Ire filed, the additional information to be developed in added column, 'Date Paid', would be pertinent. Zi 4 r 2340 7/31/34 -27n It is believed that a form such as you suggest could properbe used and would be helpful in developing the information equired in determining whether the provisions of Section 22(g) have been observed". ly Approved. Letter dated July 27, 1934, approved by two members of the 13°ard, to Mr. Stevens, Federal Reserve Agent at the Federal Reserve 13 Ll* of Chicago, reading as follows: , "On June 12, 1934, you were advised by telegram that per'WOre being issued to certain individuals under Section 32 If the Banking Act of 1933 to serve the Harris Trust and Savings and The H. Harris Company, both of Chicago, Illinois. : ISuch permits mere made effective until June 16, 1934, it being erstood that, on or before that date, The N. 14. Harris Company would_be in liquidation. The information which has been received shows that the 17Pita1ization of the company has already been reduced to the 4.°111inal amount of $1000, and indicates that the number of direc' .bT1 :8 has been reduced to three, all of whom are directors of Harris Trust and Savings Bank. The information also shows that,vi in addition to the liauidating dividend of $1,500,000 thich was paid out of the assets of the company in January of . t 8,Year, a further liquidating dividend of 41,500,000 was con0V4Plated on or about July 1, 1934, and that, after the payment such dividend, the company will have assets which will probabalresProduce between $200,000 and $400,000, but which the company ires to liquidate slowly in order to avoid sacrificing their be "In order that the Board's files may be complete, it will Ra aPPreciated if you will advise the Board whether The N. W. rris Company has been placed in liquidation as contemplated." Approved. Nara, Letter dated July 30, 1934, approved by two members of the to Lr. George S. Hovey, President of The Inter-State National Bozic,, 44:11Sas City, Missouri, reading as follows: let„ "The Federal Reserve Board acknowledges receipt of your of July 20, 1934 regarding the application of Er. R. oiv!Y Tinsman for a permit under Section 32 of the Banking Act 433 to serve as a director of The Inter-State National Bank —4 as an officer of Prescott, Wright, Snider Company, both of 2341 7/W5A -28- xiansas City, idssouri. 1 You refer to the Board's letter of July 18, 1034, and state that you will now understand Tinsman may be reelected ;;Th4.of your Board unless you hear from the Board to the As was pointed out in the Board's letter, if 1:r. 11 8 n man has ceased to be an officer and a director of the Prescott, iright, Snider Company and his relationship to the company ls not in a managerial capacity, Lii. Tinsman may be reelected a member f=oard without his relationship to the two intitution s: -within the Provisions of Section 32. On the Other hand, if hr. Tinsman is still acting as director or offIcer of the i'rescott, Tfright, Snider Company or is serving that eallTany in a managerial capacity, his service as a director of ur bank comes within the scope of Section 32 and a permit will necessary. since the Board has not been informed as However, to such steps as L. Tinsman may have taken to bring his rela1°nshilD to your bank and the .croscott, Yiright, Snider Company 11"0 c ompliance with the requirements of the law., the Board is unab10, to make any ruling in the matter. You also state that you understand if Lr. Tinsman remains a director of your bank you will not be permitted to make adileements to the Prescott, V.right, Shider Company based on ocks and bonds as collateral. You apparently refer to the : 31trt of the Board's letter in vhich your attention VIVX invited TiOn the provisions of Section 8A of the Clayton Antitrust Act. al.reference to that section was made in connection with such i.. rve,lvities, if any, of the Prescott,Wright, Snider Company and the letter, activities of your bank. As was pointed out in the t; the Prescott, fright, Snider Company makes loans Secured stock or bond collateral in connection with margin ceunts or otherwise, service by Lr. Tinsman as a director, oficor or employee of that company and as a director of your bank „ 1 corm within the prohibitions of Section SA, even though the 4.1°17isions of Section 32 no longer apply to his relationship to IpaZttwo institutions. It is suggested that you discuss this toa;!rt with the Federal Reserve Agent, the Federal Reserve s 5 local representative, at the Federal Reserve Bank of --)8- City." r r 1 Approved. Letter dated July 27, 1934, approved by two members of the 13°ard/ to Hoxton, Federal Reserve Agent at the Federal Reserve 411k of IZichmond, stating that the Board has given consideration to the f°110wing application for a permit under the Clayton Act, and that ilpon the basis of the information before it, feels that the 2342 7/31/34 -29Of the permit applied for would be incompatible with the public interest. The letter also requested the agent to communicate to the a pplicant the Board's position in the matter, and to advise the 130ard promptly as to whether the applicant desires to submit any addi'4°1341 data, and, if not, as to -what steps he proposes to take in order t° e°41PlY with the provisions of the Clayton Act. Lr. Tacker G. Loundes, for permission to serve at the a director and officer of The Second National Bank ±and, Cumberland, Laryland, as a director and officer kiumberland Savings hank, Cumberland, Liaryland, and as officer of The Lomndes Savings and Trust Company, ieSt Virginia. same time of Cumberof the a director Clarksburg, Approved. Letter dated July 28, 1934, approved by two members of the Board, t an applicant for a permit under the Clayton Act, advising Of aPProval of his application as follows: L7' -Is Jones, for permission to servo at the sare time as a rc!_ir or and officer of The First Lational Bank of Dalton, Dalton, " ooteorgia, and as a director of the Cohutta Banking Company, Chatsworth, Georgia . Approved, together with a letter, also dated July 28, 1934, and approved by two members of the Board, to Lir. e-1.4ton, Federal Reserve Agent at the Federal Reserve Bank of Atlanta, reading as follows: Per"There is inclosed for your files a copy of the Clayton Act to init issued by the Board to Lir. L. Id. Jones, Dalton, Georgia, Laj erve at the same time as director and officer of The First Baritnal tank of Dalton, Dalton, and as director of The Cohutta C°mPany, Chatsworth, both of Georgia. fro 4/1 considering the application of Lir. Jones, it was noted th examination report of The First National Bank of Dalton that ,a69 -Loans to officers, directors and their interests amounted to debt:!;?0 ' Some of which were scheduled as slow or loss. The in1934:'"ess of Lir. Jones to the national bank as at April 16, The 0-mounted to13,529.70, of which amount 0,375 was secured. examiner stated the unsecured portion was purely a moral risk, 2343 7/31/34 -30in view of the fact that the estimated worthof Er. Jones was Only C;2,500 and his annual salary was only 0.,785. This heavy and u nsatisfactory line is, of course, also a matter for criticism of the management of the national bank. The examiner of the State , ank reported that bank to be in a weakened condition, with ai sound capital of only :12,(.,00. It Was also noted that lir. les attended only three of the fifteen directors' meetings of ae State bank during the past year. It appears that the banks regard hr. Jones' experience as " Linable, especially in connection with real estate and credits 1.1 the communities served by the banks; that his counsel and adare needed and sought by the banks; that he is held in high , steem _ by the banks' customers; and that you knuu of no reason hts service would be other than helpful to the banks. In the circumstances, the Board felt that it would be preferable to grant this permit in order to avoid any unnecessary misunderstanding by the communities which might prove detrimental to tl i le best interests of the banks, but it suggests that you endeavor, fl cooPeration with the chief national bank examiner of your di:3tict, to bring about the necessary corrections of the matters to above. The Board also desiros that when you ssubmit your iyeu p r.recommendations as a result of your annual review of this anr"You report fully as to the progress made in bringing about 1mProvement in these matters." 7 130€1.rd Letter dated July 28, 1934, approved by twp members of the t° an applicant for a permit under the Clayton Act, advising "aPPr °val of his application as follows: dir "' C, Liartin, for permission to serve at the same time as a ector and officer of The First National Bank of Dalton, Dalton, aeorpi as a director and officer of The Bank of Dalton, Dalton, and as a director of The Bank of La Fayette, 1,c1 Fayette, '/eorgia. Approved, together with a letter, also dated July 1934, and approved by two members of the Board, to Newton, Federal Reserve Agent at the Federal Reserve ank of Atlanta, reading as follows: r Inere is inclosed for your files a copy of the Clayton Act Pteorlilit issued by the Board to Lir. 1, C. :artin, Dalton, Georgia, 444 1erve at the same time as director and officer of The First Of Dn T1 Bank of Dalton, Dalton, director and officer of The Bank pal I'"on, Dalton, and as director of The Bank of La Fayette, La Je bte, all of Georgia. In considering Lir. Liartin's application it was noted that 2344 7/31/34 -316n- two Dalton banks which he is serving are in active competition for practically all classes of business, :r. 1,1artin being president of both institutions, and that there is one other bh8 ank in the community, a nonmember State bank. The examination report of the national bank as at April 16, 1934, showed officers, directors and their interests to be indebted to the bank to the extent of A.69,000 as compared to a capital structure of ;„)146,000 after the elimination of depreciation in securities, doubtful asSet5 and ses. Of these borrowings, Li-. Lartin owed the bank Personaiiy;14,342.75 and his interests owed it y77,551, of which , ' 2 3"16 was scheduled as slow and ,/7,742 as loss. lie also owed T he1. ..,Bank of Dalton personally ; f r1,626.95, and his interests owed li7 a „ 16,029.b2, of .which :,;10,724.52 was scheduled as slow. It i4-vears that the criticized loans were those of the Cherokee LAnu,G_urinS Company and the Dalton Property Company and that La-. / raej ' ln was 1;ar these companies. It was also of cted that president of both of L. '.,artin had attended only three directors' meetings th° La Payette bank during the last two years. In granting the a,',Permit the Board took into consideration the fact that the 10431J-cant had been prominent in the affairs of the two Dalton tanLs, and had been connected with banking interests in La Fayette, or YE)ars; that his services were said to have resulted in no rerletion of credit or lessening of competition; that your confer! Inoe with the applicant on Larch 7, 1934, developed the inforabazlon that the applicant intended to consolidate the twc Dalton 2114a within the succeeding twelve months, and that the steady Ice oopery in collateral values supporting the loans of his interests uldn ultimately result in no loss to the banks. elle In the circumstances, the Board felt that it would be prefer,,to grant the permit in order to avoid any unnecessary misunder' thesarlding by the communities which night prove detrimental to cent interests of the banks but it suggests that you endeavor, cl,c1:0?Peration with the chief national bank examiner of your bee riot, to bring about a correction of the matters which have vihen criticized by the examiners. The Board also desires that reirli You mabmit your recommendations as a result of your annual bri,n of this permit you report fully as to the progress made in -60-ng about an improvement in these matters." Letter dated July 30, 1934, approved by two members of the Board, to Of approv 111. aPplicant for a permit under the Clayton Act, advising al cr hi application as follows: a ,;.rrank" 00dy, for Permission to serve at the same time as of L re l et°r of the Birmingham branch of the Federal Reserve Bank Of TL-anta, Birminrham, Alabama, and as a director and officer "e Pirst lAational Bank of Tuskaloosa, Tuscaloosa, Alabama. APProved, together with a letter, also dated 2345 7/31/34 -32July 30, 1934, and approved by two membe rs of the Eoard, to La.. ewton, Federal Reserve Agent at the Federal Reserve Bank of Atlanta, reading as follows: "There is inclosod for your files a copy of the G1ay'6 on Act permit issued by the Board to Lx. Frank I.'. Iloody of Tuscaloosa, labama, to serve as director and officer of The First National !:,41.nk of Tuska loosa Tusca , loosa , and direc as tor of Birmi the ngham Eranc Alabalfed m eral Reserve Bank of Atlanta, Birmingham, both of t "1n consi dering hr. Moody's application it was noLed that th0 national bank examiner considered that The First Rational it,nk of Tuskaloosa was still in an unsatisfactory condition, i ter eliminating estimated losses and making certain adjustments i C onnection with its recapitalization with the assistance of O Reconstruction Finance Corporatio n; that the examiner stated management needed to be reorganized or strengthened; _flat the directors were 'reasonably strong' but President Moody zully doni nated all phases of the bank's operations; that it was rill' °Pinion the appli cant could not be held wholly responsible for the of the bank as his domination of the detail r : rations was done in a spirit of helpfulness and viith a feeling 17.1j esponsibility to the bank, and that the condition of the bank -inlprove as busin ess conditions improve. 1fl the circumstances, the Board felt that it would be P'oforable to grant the permit in order to avoid any unnecessary tollderstanding by the community which night prove detrimental he yo , best interests of the Tuscaloosa bank, but it suggests that 0,' endeavor, in coope ration with the chief national bank examiner J,.-)rour district, to bring about a strengthening of the management ?- correction of the conditions -which have given rise to the criticisms. The Board also desires that when you subth,_Your recommenda tions as a result of your annual review of tlitpermit you repor fully t as to the progress made in bringing TusealZi a-mEa r7 l ynt in the management and condition of the Z j Letter dated July 26, 1934, approved by three members of the Board, to bctilk 01, CI :. Stevens, Federal Reserve Agent at the Federal Reserve 1"Zo, reading as follows: to tHReceipt is acknowledged of your letter of July 16 in regard ser e Clayton Act permit granted to 1,r. James T. lacLillan to ,. reo;" as a director of the Iiational Bank of Detroit and as a aiha,, 7 1 ,0f the Detroit Savings Bank, Detroit, Michigan. The Board tr; n:ed with interest the correspond ence of which copies were --Ilatted with your letter and in view of the situation descr ibed 2346 7/31/34 -3311. in that correspondence and your recommendation the Board is to continue in effect until the January election of dif*,ectors of these banks the permit granted to Mr. hichdllan. s will avoid the necessity of his resigning as a director of m.le of the two banks and the situation can be met, it would seem, ut any unnecessary embarrassment by an arrangement by which successor will be elected by one of the banks at its January oleo+. -10n- Please advise Llr. KcEillan and the banks to this effect." :itho Approved. Letters dated July 27, 1934, approved by three members of the Board to aPplicants for permits under the Clayton Act, advising of aPProval of their applications as follows: Ir- a r Batman, for permission to serve'at the same time as Ltidirector and officer of The First National Bank of Bloomington, .720mington, Indiana, and as a director and officer of the Citi' 48 Loan & Trust Company, Bloomington, Indiana. 14r. Hays H. t!:0l director Buskirk, for permission to serve at the same time as and officer of The First National Bank of Bloomington, T-0mington3 Indiana, and as a director of the Citizens Loan & ru8t Company, Bloomington, Indiana. Jul APproved, together with a letter, also dated Y 27, 1934, and approved by three members of the ..uoard, to Ir. Stevens, Federal Reserve Agent at the Federal Reserve Bank of Chicago, reading as follows: pe,. 4L0re are inclosed for your files a copy of the Clayton Act It ' aTlt issued by the Board to Lr. Ira C. Batman, Bloomington, covering his services as director and officer of The Of gational Bank of Bloomington, and as director and officer to Citizens Loan and Trust Company, and of the permit issued vien Hays H. Buskirk, Bloomington, Indiana, covering his serBC4.as director nna officer of The First National Bank of paliv()rallgton and as director of The Citizens Loan and Trust Comoth of Bloomington, Indiana. perti+F°r your confidential information in connection with these sf_ the Federal Deposit Insurance Corporation report of ' exami 1934i021 Of The Citizens Loan and Trust Company as of lamh 25, eecu, :Q4, showed doubtful assets and estimated losses, including diirrtAies depreciation, considerably in excess of surplus, unwas i3-6 Profits and reserves. The report indicated that the bank that :tng dominated to the fullest extent by the cashier, and " El InanageMent was considered unsatisfactory inasmuch as the 2347 v31/34 -34- 'I burden vras believed to be too heavy for him. The examiner recommended that a capable man be obtained to assist in the management of the institution. "Although both banks have recently strengthened their capital structures by the sale of preferred stock and/or debentures to Re construction Finance Corporation and to local interests, eY are still not free of criticized assets as indicated by current e xamination reports. The management of the national bank 4PPears to rest almost entirely with Vice President and Cashier StUll. r "In view of these facts the Board feels that further efforts iaiould be made to remove the causes of the criticisms and suggests at You endeavor, in cooperation with the appropriate supervisory uthorities to bring about a strengthening of the management and a improvement of the condition of the banks involved. The desires also that when you submit your recommendations as a result tosll t of your annual review of these permits you report fully as the progress made in bringing about an improvement in these m atters." Z Letters dated July 30, 1934, approved by two members of the 13°1/rcl 'to LT. Stevens, Federal Reserve Agent at the Federal Reserve 41111z of Chicago, referring to the following applications for permits 141d" the Clayton Act, and stating, in each case, that, upon the basis cle the 4 4-nformation before it, the Board feels that the issuance of the Perzit applied for would be incompatible with the public interest. i]cteh letter also requested the agent to communicate to the applicant B oardt s position in the matter, and to advise the Board promptly 113 t° -whether the applicant desires to submit any additional data, and, it llot, as to 1,Jhat steps he proposes to take in order to comply with the provisions Of the Clayton Act. us Babcock, for permission to serve at the same time as conzi-ficer and director of The Wood County National Bank of lasdireIT Rapids, lasconsin Rapids, iiisconsin, as an officer nnd -oor of the 1:e1oosa State Lank, Nekoosa, Wisconsin, and as a4 °fricer and director of the Farmers & ILerchants Bank, Rudolph, seonsin. 1,1r. L„ , C. Wittig, for permission to serve at the sane time as a 2348 v31/34 -35- director and officer of The Wood County National Bank of Wisconln Rapids, Wisconsin Rapids, Wisconsin, and as a director of the Vesper -Arpin State Bank, Vesper, Wisconsin. Approved. Letter dated July 30, 1934, approved by two members of the 130ard, t, ' an applicant for a permit under the Clayton Act, advising c):e4PPreva1 of his application as follows: John L. Alexander, for permission to serve at the same time a director and officer of The Wood County National Bank of ilsconsin Rapids, Wisconsin Rapids, Wisconsin, and as a director alid officer of the Nekoosa State Bank, Nekoosa, wisconsin. Approved, together with a letter, also dated , J111,Y 30, 1934, and approved by two members of the ?oard, to Li-. Stevens, Federal Reserve Agent at the vederal Reserve Bank of Chicago, reading as follows: :There is inclosed for your files a copy of the Clayton Act rriat issued by John E. Alexander of Port Edthe Board to ards, Viisconsin, to serve as director and officer of The Wood c° 01111 Y Lational Bank of Wisconsin Rapids, Wisconsin Rapids, Yds-,1141n, and director and officer of Nekoosa State Bank, Nekoosa, "18consin. "In considering las. Alexander's application it was noted that zi his loan of v13,000 at the national bank was criticised as eni°71 'tad his loan of %?7,239.33 at the State bank MS included as.°11(i; loans especially mentioned. Loans by the national bank oreCating approximately ,,e82,000 to the Nekoosa Edwards Paper 1711 of which the applicant is the general manager, were ered to be an undue concentration of credit although the 3.114111111ner stated that this company should experience no difficulty Iretinc these obligations. It was also noted that a loan of palY86s62 by the State bank to the National Carbonic Lachine Comlos'in Inhich the applicant is interested, was classified as a rj Luc applicant, his family and interests, however, made largo' re contributions to the national bank in order that it might alaurne business following the banking holiday. The applicant is re,0 reported to have a large net worth, appears to be highly thel.dcd and is the representative of the largest industry in th_Le crilmunity. In view of these circumstances, the Board felt it would be preferable to grant the permit. 'fle beard desires that when you submit your recommendations "a full result of your annual review of this permit, you report Y"to tho current status of the borrowings of ILI-. Alexander 2349 / 1 21/34 -36- his interests at the national bank, and whether such borrow"gs constitute an abuse of the credit facilities of the bank." Letter dated July 30, 1931, approved by two members of the Board, to an applicant for a permit under the Clayton It, advising qaPproval of his application as follows: 14r. -"O. Steel, for permission to serve at the same time as a director and officer of The First National Bank of Eldon, Eldon, as a director and officer of The First National BRnk of Centerville.,_, Centerville, Iowa, and as a director and officer of the Iowa Trust & Savings Bank, Centerville, Iowa. Approved, together with a letter, also dated July 30, 1931, and approved by two members of the Board, to Lir. Stevens, Federal Reserve Agent at the Federal Reserve Bank of Chicago, reading as follows: nr by theihere is inclosed a copy of the Clayton Act permi.c, issued Board to L. w. 0. Steel, Centerville, IOWA, covering his ices as director and officer of The First National Dank of B °11, Eldon, Iowa, director and oiTicer of The First National 4,!Lit' of Centerville, Centerville, Iowa, and as director and of.tlcerof u the Iowa Trust & Savings Bmik, Centerville, Iowa. In the consideration of br. Steel's application it was ed that the examination report of The First National Bank of a4don shcved that the management was weak and the condition was Tigigravated by lack of attention on the part of the directors. LaZ.national bank examiner in his remarks concerning The First sert.Bank of Centerville states that a period of future ob111,_"'"'lon will be required to determine whether the present iza6eraent is capable of carrying on the capable and efficient IC;31211ont which that bank enjoyed in the past. the , t;The Board suggests that you endeavor, in cooperation with alef Lational Bank Examiner of your district to bring about a Stren . g lienlng of the management and fuller cooperation of the yodirectors in both national banks and also suggests that, when ofut1 73.nlit Your recorrmiendation as a result of your annual review Permit, you report fully as to the progress made in c.-4/Ig about an improvement in the manac.ement." V r Bottra, Letter dated July 27, 1934, approved by three members of the 41.11k 0:: PGYton, Federal Reserve A,7ent at the Federal Reserve 411noapoli3, reading as follows: Reference is made to your letter of July 12, 1931, with 2350 7/31/34 -37- was inclosed a letter dated July 11, 1936, from Mr. R. Barron of idinot, North Dakota, relative to the Clayton Act apPlication of La... Barron for permission to serve as director and cfficer of First National Bank in Janet, idnot, and as director Of First State Bank, Burlington, North Dakota. "The Board has given consideration to the matters set forth in Ix. Barron's letter of July 11, 1934, addressed to you, but !till feels that the issuance of the permit applied for would be 3.1.1conTatib1e with the public interest. You are requested to adse the applicant accordingly. It is noted that Mr. Barron states that it is his intention to re,. :gn -i as a director of the First State Bank of Burlington. lie7n Barron has broucht his relationships into conformity .'1741 tIle provisions of the Clayton Act, please advise the Board ln order that its records in this case may be complete." Approved. Letter dated July 27, 1034, approved by two members of the 13°Erd, t rl. o --• 13atic p eyton, Federal Reserve Agent at the Federal Reserve of lanneapolis, reading as follows; ihere are inclosed the Clayton Act permit, and copies ,Gre°17, ' ) ' issued by the Board to Mr. Louis G. Kaufman, Yarquette, 44j.eir; pir :Pln, covering his service as director and officer of The Iqvtional Bank and Trust Company of Marquette, Marquette, "lCan, and of The Marquette County Savings Bank, Marquette, achigan. 11In analyzing Lx. Kaufman's application, it was noted that, 1111 aI,n17er to question 12 on form 94, the applicant stated that, a,/1c'uition to his services with the two banks covered by his ) .lication, he is a director of General Motors Corporation, exrit, 1,iehigan, Empire State, Incorporated, New York, N. Y., Chicago & Erie Railroad, Cleveland, Ohio. In answer to 11,7stion 13 on form 94, the applicant stated that the two banks e 1"-ns on stock or bond collateral, and that 'So far as I kn' 'none of the other organizations listed above makes loans ,,4 1 viclual s, associLtions, partnerships or corporations secur2 it 'Y stock or bond collateral.' In View of this statement, thrlc not clear whether the services of the applicant with the the " Oil banking, organizations referred to above come within 11;ohibitions of Section 8A of the Clayton Act. In this connection, reference is made to the Board's letter tr 8 of November 10, 1933 (K-7677) and December 19, 1933 (X-7721 17hich it will be noted that if any non-banking organization . with ich Mr. Kaufman is connected occasionally makes loans seuY stock or bond collateral, other than to its own subsidi-4 'his service at the save time as a director of such 4 7/31/34 _or ganization and as a director, officer, or employee of a national bank is prohibited by Section SA, and the Board is without authority to issue a permit in such a case. Accordinly, it is equested that, before releasing the inclosed permit, you ascertain definitely whether Ia.. Kaufman's services with any of the 1(311-banking organizations listed in his application come within the prohibitions of Section SA. If it is determined that none Of the non-banking organizations makes loans on stock or bond ?ellateral within the contemplation of Section SA, you are authorized to release the inclosed permit to :1*. Kaufman, at the kme time forwarding copies thereof to the banks involved. Please advise the Board of your disposition of this matter, in order that its records nay be complete." Approved. Letter dated July 27, 1934, approved by two members of the c)13-rd, "r• Peyton, Federal Reserve Agent at the Federal Reserve Bank °f Li nneapolis, reading as follows: 'here are inclosed the Clayton Act permit and copies there.c tr issu•ed by the L. Rubin, Bismarck, Korth Dakota, Board to erve es director and officer of The First National Bank of on, arid as director of The Dakota National Bank 6.; Trust Comr'"Y of Bismarck, both in Korth Dakota. ItIn. the consideration of Lr. Rubin's application it was I cted (item 12 - F.R.B. Form 94, dated December 13, 1933) that Pe Ms serving as president of the First Kational Investment Cornto1Y: Ashley, South Dakota, the business of which was described e 'investments'. thethe Board does not have detailed information regarding character of the business conducted by this company, it ape oZrs Possible that the provisions of Section 32 of the Banking ren cf 1933 aro applicable in this case. Therefore, the Board t411.7cts that you make such investigation as is necessary to deof ne the status of 14r. Rubin with respect to the provisions ' L Getion 32. 11seoti_lfr you find to your satisfaction that the provisions of to t un 62 are not applicable to Lr. Rubin, you are authorized r4nsnit the Clayton Act permit to the applicant and copies ' r0V to the banks concerned. 14411 If You find that Lr. Rubin's service with the above named seci!; an(1. investment company COMBS within the provisions of Of ,(311 32, you are requested to inform him of the requirements tionit section and as to the procedure in making formal applioafac " - pr a Section 32 permit. If upon consideration of all the t_ 's involved, with the advice of your counsel, you are unable u determine to your satisfaction the applicability of Section l 2352 7/31/34 -39- la this case, the Board, upon receipt of full information, yill be glad to rule upon the matter. In any event, the delivery °f the Clayton Act permit should not be made until it has been determined that Er. Rubin's service with the above named company t alascl haniz does not come within the provisions of Section 32 or r-4t his service with such institutions has been brought into conwith the requirements of that section. Please inform the Board of the action taken in this matter." Approved. Letter dated July 27, 1934, approved by two members of the 13°ard s to lir. 13kalk McClure, Federal Reserve Agent at the Federal Reserve of Kansas City, reading as follows: 04, ."There are inclosed the Clayton Act permit, and copies thereIssued by the Board to Walter J. Aycock, El Reno, Oklahoma, lng his services at The Citizens National Bank of El Reno, ,?er4Re f_orno, Oklahoma, and the Piedmont State Bank, Piedmont, Oklan m. ✓ "In analyzing Mr. Aycock's application it was noted that the .eport of examination of The Citizens National Bank of El Reno April 14, 1934 contained a statement of condition of the ns Finance and Investment Company, El Reno, Oklahoma, as rah ✓22 PRA 31, 1934 showing loans and discounts amounting to '-.J= out of total assets of $23,316. Er. Aycock was listed • 'vice president and a director of the company. The report did not se indicate if the loans and discounts included any loans Laegred by stock or bond collateral. The application, dated '1934, stated that the applicant was not a director, offiY 18 Renos or employee of any firm or corporation other than the El __ and Piedmont banks. Before releasing Mr. Aycock's permit, requested to satisfy yourself that he has severed his co4t.licial connection with the Citizens Finance and Investment O' 1133anY, provided that this company makes loans secured by stock Of 211d collateral. Please advise the Board of your disposition matter in order that its records may be complete. According to the same report of examination, Er. C. A. Vose 4 a director of the Citizens Finance and Investment Company. uj erinit was issued to Er. Vose on November 9, 1931 by the Board i,:(er authority of Section 8 of the Clayton Antitrust Act coverhis services at the First National Bank and Trust Company .11 mc) °Iclahota City, Oklahoma, The Citizens National Bank of El 4eno. 010.4 0klah °ma, and the American National Bank of Fort Towson, 8.13111.°ln " Unless it is determined in connection with Er. Aycock's 1101 ication that the Citizens Finance and Investment Company does 114ke loans secured by stock or bond collateral, please ascer4 inform the Board if Er. Vose has severed his official 3a" .4 2353 v31/34 -40- Uc onnection with this company." 'Is Clayton Act permit referred to authorized Lr. Aycock to serve at the 86tMe tine as a director and officer of The Citizens 'I'ational Bank Of El Reno, El Reno, Oklahoma, and as a director of the riedmont 81L-te Bank, piedmont, Oklahoma. Approved. Letter dated July 27, 1934, approved by two members of the Bo ard, to . LcClure, Federal Reserve Agent at the Federal Reserve Baalk of Aansas City, reading as follows: "There are inclosed the Clayton Act permit; and copies there3Of issued by the Board to L. E. C. Love, Chandler, Oklahoma, verinE his service as director and officer of The First 1:ational Of Chandler, Chandler, Oklahoma, and director of The First ' -d"nal Bank of Stroud, Stroud, Oklahoma, for trprsmittal by You files. 1,:r. Love and the two banks, together with a copy for your r to th In approving this application, consideration has been given the af satement of the applicant that he has kept in touch with off. fall's of the Stroud bank through contacts with the active po leers and by careful inspection of the bank's examination reIt has been noted, however, that he has attended only 6 i'reetorel meetings of a total of 33 held by the Stroud bank dur1Z the Past two years. The Board feels that a director should sj? satisfactory record of discharging the duties and respon0 ullities of his office by participating in the management and irat10/11; of the bank through attendance at directors' meetings. ci; 11 transnitting to La.. Love his copy of this permit, it is deViheleid that you inform him of the Board's views in this matter. rev-4-2roll submit your recommendations as a result of your annual ao --4.-w of this permit, the Board requests that you report fully 1934." Love's attendance at directors' meetings during Approved. Lotter dated July 27, 1034, approved by three members of the 13(3krd, to Lir. LeClure, Federal Reserve Agent at the Federal Reserve Betro, Of 4 "sas City, reading as follows: "hore are inclosed copies of the Clayton Act permit issued 2354 v31/34 -41ft, LIY• the Board to La-. F. G. Whipple to serve The First 1,ational of Lawrence, iansas, and The First Savings Bank, Laurence, Kansas. "Confidentially, information obtained from the files of the Comptroller of the Currency indicates that 1,1r. F. C. Whipple aPparently has committed a number of violations of Section 22() of the Federal Reserve Act by overdrawing his account in The First l'atienal Bank of Lawrence, and that the alleged violations were reported to the Attorney General of the United States. .Che Board feels that, in all cases where there have been !iolations of the law, even though of a technical nature and not flrivolving large amounts, definite information should be obtained ,n11 the proper authorities regarding the disposition which was of such cases before permits under the provisions of the Act are issued. You are requested, therefore, to ascertain the status of charges against Li-. F. C. -Clippie, and in the svent the cases have been duly considered and closed without pro4?euti0n, you are authorized to release the inclosed permit to applic x_c,t_n and to foruard copies thereof to the banks involved, aa u time furnishing the Board complete information with rle; ,, :oard to the disposition of these matters in order that its 'tleord$15, may be complete. „„ 4hen you submit your recommendations, as a result of your aal review of this permit, the Board requests that you report pr41Y as to whether La-. F. C. Vihipple has further violated any °visions of the law by overdrawing his account or otherwise." iV the Clayton Act permit referred to authorized hr. Mipple to serve at the time as a director and officer of The First National Bank of La471'exice, Lav.Tenee, Hansas, and as a director and officer of The First 8"ings Bank, Lawrence, Kansas. Approved. Letter dated July 30, 1934, approved by two members of the n v r 3 t0 Lank at lc 1. 1,cClure, Federal Reserve Agent at the Federal Reserve 41344s City, reading as follows: i ihere are inclosed the Clayton Act permit and copies thereOf Iled by the Board to hr. J. R. Breed, 7436 Broadway, Kansas 0. " • The IT . ..4ouri, covering his services as director and officer of pir,4!liversity Lank, Kansas City, Elissouri, and as director of ihe You 0ilational Bank of hydro, Hydro, Oklahoma, for transmittal by 1,r. Breed and the two tanks, together with a copy for your v31/34 'In approvinr; this application, consideration has been given to.the statement of The First i:ational Bank of hydro that the apPlleant spends several days at the bank two or three times a year (1.. which times the bank's policies and conditions are discussed Ylth the officers, and also to your statement that the applicant well and favorably known in hydro where he formerly lived. It ! 18 been noted, however, that the applicant has not attended any directors,1_ meetings of the liydro bank during the past two years. "e Board feels that a director should have a satisfactory record Of d ischarging the duties and responsibilities of his office by P, cfticiPating in the management and operations of the bank through at directors' meetings and it is with the expectation that -cllat the applicant will improve his attendance that the Board has alted the permit. ';then transmitting to Lr. Breed his copy of Pc3rmit, it is desired that you inform him of the Board's L'el713 in this natter. Iihen you submit your recommendations, as a th tt of your annual review of this permit, the Board requests at You report fully as to L. Breed's attendance at directors' 211°°t1n-gs during 1934." T Approved. Letter dated July 30, 1934, aDproved by two members of the B°41'd, to : LcClure, Federal Reserve 11,;ent at the Federal Reserve BEtrik , °f 4an5a5 City, reading as follows: "There are inclosed the original and copies of the Clayton Permit issued to 14-. Charles F. Coffee covering, his services cOrector and officer of The First Rational Bank of Chadron, -Ofl3 Nebraska, The Sioux National Bank of harrison, Harrison, !ebraska, and The First National Bank of Hay Springs, Hay Springs, -ebrEtaka. ACt 1- is noted from 1,,r. Coffee's application that, in addition o 11 t4, di, service on the above named banks, he is also serving as all'aeotor of the First National Bnnk of Gordon, Gordon, i;ebraska, tio that he stated that he intended to resign from such institu- then:, however, the records of the Board and the Comptroller of fro ulnIrrneY do not indicate that hr. Coffee has as yet resigned : 411 1 -110 bank and in view of the fact that the Board is without _ tt, issue a permit covering more than three banking inYOU are requested to withhold delivery of the inclosed 4,4con Act permit to Er. Coffee until you are satisfied that he of rilletually severed his connection with the First National Bank to ./Ornl,d , In which event you are authorized to deliver the permit the e a pplicant, at the same time transmitting copies thereof to LInks involved. Please advise the Board of your action in this matter." Approved. 2356 7/31/34.. --43Letter dated July 30, 1934, approved by two members of the uo McClure, Federal Reserve Agent at the Federal Reserve Bank of Xansas City, reading as follows: "There are inclosed copies of the Clayton Act permit issued Robert S. Gast, Thatcher Building, Pueblo, Colorado, covering his service as director and officer of The First National Dank of Florence, Colorado, and director of The American National ! ,n1c of Alamosa, Colorado, for transmittal by you to Lr. Gast and 46 tr banks, together uith a copy for your files. In approving this application, consideration has been given to Your statement that the applicant is familiar with the affairs of the banks through frequent contacts with their officers and a !bstantial stockholder although it has been noted that he has attended only 4 of the 28 directors' meetings held during the past -cwo rears at Florence and 3 of the 26 meetings held during that period a at Alamosa. The Board feels that a director should have a f record of discharging the duties and responsibilities of or . 11-8 office by participating in the management and operations bank through attendance at directors meetings. Uhen trans'tang to Lx'. Gast his copy of this permit, it is desired that !?!-I inform him of the Board's views in this natter. lilhen you subYour recommendations, as a result of your annual review of t, of18Pert, the Board requests that you report fully as to Er. " a attendance at directors' meetings during 1934." t V Approved. Letter dated July 30, 1934, approved by two members of the Board, to Lr. McClure, Federal Reserve Agent at the Federal Reserve Ba* of 4ansas City, reading as follows: It There are inclosed Clayton Act permit and copies thereof iSSI14,1 by the Board to Mr. E. A. Hanes, to serve as director and np, ( -1;-Lioer of The First National Bank of Ottawa, Ottawa, Kansas and difiector of the Lane State Bank, Lane, Kansaspir 4_ Information obtained from the examination report of The 1934, indicates that National Bank of Ottawa as at January 24, li.2 ?'r e E. A. Hanes has probably violated Section 5208 of the by certifying a check when the drawer did not have sufeIent funds on deposit to cover, and that the alleged violation was r ported to the Attorney General of the United States. -701,4 Ihe Board feels that, in connection with applications inreported violations of the law, definite information -114d be obtained regarding the disposition which was made of 2357 7/31/34 -44- O such eases before permits under the provisions of the Clayton Act are issued. You are requested, therefore, to ascertain the status of the charges against 1,1r. E. A. Hanes, if any, and in the event the case has been duly considered and closed without Prosecution, you are authorized to release the inclosed permit to Lr, B. A. Hanes and to forward copies thereof to the banks involved, at the same time furnishing the Board complete inferion with respect to the disposition of this matter, in order that its records may be complete. The Board also desires that, ' clEca you submit your recommendation as a result of your annual review of this permit, you report fully as to whether Ur. Hanes 'las further violated any provisions of the law." T Approved. Letter dated July 30, 1934, approved by two members of the Bo d -3 to lir. McClure, Federal Reserve Agent at the Federal Reserve 13Walcof to the Kansas City, stating that the Board has given consideration following application for a permit under the Clayton Act, and uPen. the basis of the infarmation before it, feels that the isstlance of the Permit applied for would be incompatible with the public " c The letter also requested the agent to communicate to the 4P14earit the Board's position in the matter, and to advise the Board Proztptly as to whether the applicant desires to submit any additional °Etta. '11114, if not, as to it steps he proposes to take in order to ceralay with the provisions of the Clayton Act. / f' P. G. Wulf, for permission to serve at the same time as director and officer of the Humboldt National Bank, Humboldt, p;Tsas, and as a director and officer of The State Bank of Garden 41 in, Garden Plain, Kansas. Approvod, together with the following letter to be transmitted to Lr. O'Connor, Comptroller of ,he Currency, if and when advice is received from ! 4 ' 'McClure, that hr. Milf has severed his connection with the State Bank of Garden Plain, Kansas: p "The Board has recently had under consideration the Clayton 2358 7 /31/34 -45Act application of jr. U. F. G. Wulf, Humboldt, Kansas, for persame time as director and officer of the National Bank, Humboldt, Kansas, and as director and officer of the State Bank of Garden Plain, Garden Plain, Kansas, and Upon the basis of the information before it, did not grant the .1!PPlication. The Board has been advised that Er. Wulf has severed "ls connection with the State Bank of Garden Plain. The Board's ieltion upon this application was based largely upon the nature of tl,.! use which the applicant has made of the credit facilities of t',1 Humboldt National Bank and the criticisms of operating prac. 1ces and policies of such bank as shown in the current report of r'x.darlination. In this connection, there is inclosed for your conBlontial a copy of a memorandum prepared in the -rus Division of Examinations covering this case. "The Board's action on this case is called to your attention yj elY for your information in connection with any consideration st i Your office might give to whether proceedings should be in1,,?;6uted under the provisions of Section 30 of the Banking Act of 03, with respect to Er. Wulf." V-385-on to serve at the ,111.11boldt Z Letters dated July 26, 1934, approved by members of the ii°41'cl, to aPPlicants for permits under the Clayton Act, advising of apPrOval Of their applications as follows: kr. Gan u Buclman, for permission to serve at the same time as 4Arector of The Commercial National Bank of Charles City, Charles 13.,Y1 I°Iva, and as a director of the Commercial Trust and Savings Charles City, Iowa. c. x. Dinkel, for permission to serve at the same time as a dir Of The Commercial National Bank of Charles City, Charles 401.1 Iowa, and as a director of the Commercial Trust and Savings Charles City, Iowa. 4. , 1' Hauser, for permission to serve at the same time as z.4.: 7 rector ch vr and officer of The Commercial National Bank of Charles T4:41 ," CitY, IOVJR, and as a director and officer of the Colamercial and Savings Bank, Charles City, Iona. kr. j lie . oht, for permission to serve at the same time as a director cha 8:ad officer of The Commercial Eational Bank of Charles City, Tru:! "City, Iowa, and as a director and officer of the Commercial -' and Savings Bank, Charles City, lova. Gen If. Johnson, for permission to serve at the sane time as a Citir-'.°1* of The Commercial National Bank of Charles City, Charles " ' 0wa, and as a director of the Commercial Trust and Savings s Charlea City, Iowa. 2359 7/31/34 -4614r. Carl C. Magdsick, for permission to serve at the same time as a. director and officer of The Commercial National Bank of Charles ',„'itY$ Charles City, Iowa, and as a director and officer of the vommercial Trust and Savings Bank, Charles City, Iowa. Ralph P. Waller, for permission to serve at the same time as a of The Commercial National Bank of Charles City, Charles ect°r Y, Iowa, and as a director of the Commercial Trust and Savings 'Dank, Charles City, Iowa. t Approved, together with a letter, also dated July 26, 1934, and approved by three members of the Board, to Mr. Stevens, Federal Reserve Agent at the Federal Reserve Bank of Chicago, reading as follows: °There are inclosed for your files copies of the Clayton Act rrilite issued by the Board to Messrs. Carl C. Magdsick, A. M. atIaleT., J. Hecht, C. F. Dinkel, Geo. H. Buckman, Ralph P. Waller 06.'0" W. Johnson covering their services as directors and/or of The Commercial National Bank of Charles City and Corntlerleers rust and Savings Bank, both of Charles City, Iowa. In re2ort ofconsidering these applications, it was noted that the examination of the national bark as of June 4, 1934, Pd loans to Messrs. Magdsick, Hauser, Buckman, and hecht terr their interests as subject to criticism. It was further be Id that the national bank examiner reported the management to ng in aggressiveness and initiative and suggested that, w of the substantial increase in slow paper and the failure !Past to perform on promises made for correction, monthly reiri, appa-4's be required over the signatures of the directors. It also theTns,,,that the above named directors have been associated with roof for many years, that the banks operate under the same illeti Zau for all practical purposes apparently are regarded as one feet- ution$ and that the management has expressed a desire to efTeonsolidation of the two banks. be t' 11 view of these circumstances, the Board felt that it would der; ' Itsferable to grant these permits in order to avoid any misun14ding by the community- which might prove detrimental to the beet! J.nterests of the banks, but it suggests that in cooperation 1 Z the D istrict Chief National Bank Examiner, you endeavor to the ab°ut a correction of those matters -which were the cause of ;Iiner's criticisms. 2111al 1,:r1 You submit your recommendation as a result of your anas to: 1 617 of these permits, you are requested to report fully liallser -"e current status of the borrowings of Messrs. Magdsick, t Buckmn, and Hecht and as to the action, if any, which has been. ' 81°311 to strengthen the management of the national bank." Z Zn r Lettr 8 8 dated July 26, 1934, approved by three members of the 2360 / 1 21/34 -47- Board, to aPplicants for permits under the Clayton Act, advising of 4PProval of their applications as follows: lir. L. L. Trussell, for permission to serve at the same time as T. director of The First National Bank of Fordyce, Fordyce, ..srkansas, and as a director and officer of the Fordyce Bank & Trust Company, Fordyce, Arkansas. Julius A. Coller, for permission to serve at the same time ;Lacoltector and officer of The First National Bank of Shakopee, $ Minnesota, and as a director and officer of the First Utate Bank, hew Market, Minnesota. 11?'. J. H. Moore, for permission to serve at the same time as a director and officer of The First National Bank of Shakopee, akoPee Market,lannesota, and as a director of the First State Bank, iw' hinnesota. Pe 'Cs Theo. Weiland, for permission to serve at the same time s Et18 , a director and officer of The First National Bank of Shakopee, ceakopee2 Minnesota, and as a director of the First State Bank, wLiarket, Minnesota. Approved. Board, Letters dated July 27, 1934, approved by two members of the t° aPPlicants for permits under the Clayton Act, advising of v'l of their applications as follows: A Austln L. Adams, for permission to serve at the same time as adodireo+-or and officer of The Naugatuck National Bank, Naugatuck, cr,n4eoticut, and as a director and officer of The Colonial Trust .111Pany, Waterbury, Connecticut. Mr. • "lfred red E. Chase, for permission to serve at the same time as lias_.,4.1cer of The Merchants National Bank of Boston, Boston, Lynrohusetts, and as a director of The Central National Bank of LYnn, Massachusetts. F. Davis, for permission to serve at the same time as a. dire reotor of the Hartford Savings Bank & Trust Company, libite Ba! Junction, Vermont, as a director of the Claremont National Claremont, New Hampshire, and as a director of The Windham 1al Nat.1°2 Bank of Bellows Falls, Bellows Falls, Vermont. lir. j allies F. Dewey, for permission to serve at the same time as 2361 7/31/34 -48a director of The Wbodstock National Bank, Woodstock, Vermont, ;Itzsc = r:tor and officer of the Hartford Savings Bank & White River Junction, Vermont. lir. Benjamin Apple, for permission to serve at the same time as a director of The First National Bank of Sunbury, Sunbury, Pennlvazia, and as a director and officer of the Freeburg State "641k, Freeburg, Pennsylvania. Ijf. Lewis, for permission to serve at the same time as a rector of The First National Bank of Asheboro, Asheboro, North B ! 9.1.°1ina, and as a director and officer of the Bank of Biscoe, lscoe, North Carolina, VI. * D. Cook, for permission to serve at the Bare time as a t.a.rector and officer of the First National Bank in Meridian, Li!ridiAns Mississippi, and as a director and officer of the Bank vl Lorton, Lorton, Mississippi. Lum Anderson, for permission to serve at the same time as a irector and officer of The First National Bank in Green Forest, ! /3 een Forest, Arkansas, and as a director of The First National 4/* at Berryville, Berryville, Arkansas. , "Beerse, for permission to serve at the same time as a (.4*iila-cector aad officer of The First National Bank of Hastings, 13„!ings, Minnesota, and as a director of the Vermillion State Q-Lia, V ermillion, Linnesota. E r dvardS. co, for permission to serve at the same time as 4 director and officer of The First National Bank and Trust ComPany of Larquette, Marquette, Michigan, and as a director of The rquet -ci-te County Savings Bank, Marquette, Michigan. uharles L. Brainerd, for permission to serve at the same time ma. director and officer.of The First National Bank and Trust Th;ltb_LY of Marquette, Marquette, Michigan, and as a director of 4uurquette County Savings Bank, Marquet-6, Michigan. g % Ed ra. a djr'd J. Hudson, for permission to serve at the same time as poz ; e"or and officer of The First National Bank and Trust CoinMarquette, Marquette, Michigan, and as a director and ofricer ' of The Marquette County Savings Bank, Marquette, Michigan. , j recto'hn1i11, for permission to serve at the same time as a diriso r and officer of tho First National Bank in Garrison, Garof „114 North Dakota, and as a director of The First National Bank Niarson, Carson, North Dakota. Ur. c. L. Frick , for permission to serve at the same time as a 2362 v31/34 -49- rector and officer of The Farmers National Bank of Oberlin, 0 erlin, Kansas, and as a director and officer of the Dresden State B...Luc, Dresden, Kansas. Approved. Letters dated July 27, 1934, approved by three members of the hoard, t, aPplicants for permits under the Clayton Act, advisinc of 4Pr°1ra1 of their applications as follows: Lir Doak Finch, for permission to serve at the same time as a director of The First National Bank of Thomasville, Thomasville, 13°1-bh Carolina, and as a director and officer of the Carolina ,ond Trust Company, Denton, North Carolina. Lr. " G rge D. Finch, for permission to serve at the same time as director of The First National Bank of Thomasville, Thomasville, Orth C arolina, and as a director of the Carolina Bank and Trust on1Pany., Denton, North Carolina. 'I. Garner, for permission to serve at the same time as an cer of The First National Bank of Thomasville, Thomasville, borth C arolina, and as a director and officer of the Carolina allk and Trust Company, Denton, North Carolina. c as * harles F. Phillips, for permission to serve at the same time vi4 director of The First National Bank of Thomasville, ThomasLorth Carolina, and as a director and officer of the no. Bank and Trust Company, Denton, North Carolina. , 2 "Pope, for permission to serve at the same time as an °f 0-;icer of The First National Bank of Thomasville, Thomasville, Con, h Carolina, and as a director of the Carolina Bank and Trust C0pany Denton, North Carolina. ri '11a1ter -qapp, for permission to serve at the same time as 4 - 04Vieer of The First National Bank of Thomasville, Thomasville, COra 4' Car olina, and as a director of the Carolina Bank and Trust Paay, Denton, North Carolina. Lir. B. recto," 4they, for permission to serve at the same time as a diand officer of the Security Bank al: Trust Company, Enid, of 4 °Ma, and as a director and officer of The First National Bank erine3seY, hennessey, Oklahoma. G. 1, direct [ i * Athey, for permission to serve at the same time as or and officer of the Security Bank & Trust Company, /mid, 2363 7/31/34 -50- Oklahoma, and as a director and officer of The First National Balik of Hennessey, Hennessey, Oklahoma. 14 R. G. Athey, for permission " to serve at the same time as a director and officer of the Security Bank & Trust Company, Enid, Idahoma: and as a director and officer of The First National 14011c of Hennessey, Hennessey, Oklahoma. ? 14 14 AA Basgall, for permission to serve " at the same time as ;itTor and officer of The Farmers National Bank of Victoria, a: Kansas, and as a director of The First National Bank Of Hays City, Hays, Kansas. Mr. j A A• iclireotor lermis, for permission to serve at the same time as a and officer of The First National Bank of Hays City, Hays, _!118Rs: and as a director and officer of The Farmers National Bank v4 Victoria, Victoria, Kansas. j0A. Lermis, for permission to serve at the same time as lac d irector of The Farmers National Bank of Victoria, Victoria, risas, and as a director of The First National Bank of Hays ltr '}lays: Kansas. j 1:Ir. George Docking, for permission to serve at the same time as Ladirect°r and officer of The First National Bank of Laurence, inl : renees Kansas, and as a director and officer of The First Say'' Lawrence, Kansas. a ,,'1.A.liam Docking, for permission to serve at the same time as 43'J-rector and officer of The First National Bank of Laurence, LaZence, Kansas, and as a director of The First Savings Bank, -4ence, Kansas. n V. Hoover, for permission to serve at the same time as 'Airector of The First National Bank of Laurence, Laurence, 4rctirass as a director of The First Savings Bank, Lawrence, Kansas, 4, a8 a director and officer of The Kaw Valley State Bank, „sas. Eudora, 0. Mr. , dire • Stewart, for permission to serve at the same tireas a direct Qs of The First National Bank of Lawrence, Laurence, Kansas, 4 d irector of The First Savings Bank, Lawrence, Kansas, and as %klrector of The Kaw Valley State Bank, Eudora, Kansas. Th 4' 3111as Beaslin, for permission to serve at the same time as 11.13;ector and officer of the Ford City State Bank, Ford City, and as a director and officer of The Citizens National °f King City, King City, Eissouri. 4 ji Cashman, for permission to serve at the same time as a 2364 7/31/34 -51director and officer of the First State Bank, Tishomingo, Oklaas a director and officer of The Bank of Commerce, WetuMka, unklahama, and as an employee of the National Bank of Tulsa, Tulsa, Approved. Letters dated July 28, 1934, approved by two members of the 'Ll7d" to applicants for Permits under the Clayton Act, advising of aPProval Of their applications as follows: T4r. -• J. Head, for permission to serve at the same time as a ,..I.rector and officer of The First National Bank of Dalton, Dalton, , "rgia, and as a director P.m officer of The Bank of Dalton, ualton, Georgia. r d. " Martin, for permission to serve at the same time as a lreotor of The First National Bank of Dalton, Dalton, Georgia, and as a director of The Bank of Dalton, Dalton, Georgia. !Sr. Charles Henderson, for permission to serve at the same time a director of the First Farmers and Merchants National Bank T_ l'roY, Troy, Alabama, and as a director and officer of the ' 0Y Bank and Trust Company, Troy, Alabama. Approved. 13Oard Letters dated July 30, 1934, approved by two members of the 'to Etppr0 applicants for permits under the Clayton Act, advising of 741 of their applications as follows: di -kay F. Lynch, for permission to serve at the sane time as a l'?otor of the First National Bank in Latrobe, Latrobe, Pennsyl" 1 , and as a director of the First National Bank of Scottdale, ceLtdale, Pennsylvania. r 111*. L. T: dir_ Noland, for permission to serve at the same time as a lie:toter of The First National Bank of Newport News, Newport 'Virginia, and as a director and officer of the Citizens -414111e Jefferson Bank, Newport News, Virginia. dire "ad A. Cox, for permission to serve at the same time as a cit otor of The Hamilton hational Bank of Johnson City, Johnson To„ Y1 Tennessee, and as a director and officer of the Farmers & v —rchants Bank, Limestone, Tennessee. 2365 V31/34 -52- Ij**"Ks Hunter, for permission to serve at the sane time as a director and officer of The Liberty National Bank a: Trust Company tt:r1111, Savannah, Georgia, and as a director of The First ank & Trust Compsmy in Macon, Macon, Georgia. Z Stanley A. Clark, for permission to serve at the same time as ,E! director and officer of The City National Bank of South Bend, 02Uth Bend, 0-cate Bank, Indiana, and as a director and officer of the Galien Galien, Michigan. lir. Perry Davis, for permission to serve at the same time as a director and officer of The Lafayette National Bank, Lafayette, ,1clisza, and as a director and officer of the Stockwell State Bank, tOck11, Indiana. 14r. -a TT_ rry Jennings, for permission to serve at the same time as a director of The First National Bank of .1.0wa Centerville, Centerville, , 4,,J and as a director of the Iowa Trust & Savings Bank, Center'4 -"e, Iowa , R. Calverley, for permission to serve at the same time as kAlrector and officer of The Kirk State Bank, Kirk, Colorado, -334 as a director and officer'of The First National Bank of Straton, S tratton, Colorado. Z CharIs P. Coffee, Jr., for permission to serve at the same ; 411e as a director and officer of The First National Bank of Chadn, Chadron, Nebraska, and as a director of The Sioux National ank of H arrison, Harrison, Nebraska. E • A; cil ' Ain D. Crites, for permission to serve at the sane time as rector of The First National Bank of Chadron, Chadron, and as a director of The Sioux National Bank of Harrison, -4.ricon, Nebraska. e % aa ' llaanin P. Pitman, for permission to serve at the same time 1,,, 44 director of The First National Bank of Chadron, Chadron, 4 ,r iaska, and as a director of The First National Bank of Hay llgs, Hay Springs, Nebraska. a di, Birningham, for permission to serve at the same time as ?e-cor and officer of The First National Bank of O'Neill, Ba1;141, Nebraska, as a director and officer of The First National Of ;,(3f Atkinson, Atkinson, Nebraska, and as a director and officer "e Emmet State Bank, Emmet, Nebraska. ka aE4nard M. Gallagher, for permission to serve at the sare time 0111 B .kurector and officer of The First National Bank of e111, N ebraska, as a director and officer of The First National c)f Atkinson, Atkinson, Nebraska, and as a director and officer 2366 / 1 21/34 the Emmet State Bank, Emmet, Nebraska. . Geo. E. Gano, for permission to serve at the sane time as a idirector of The First National Bank of Hutchinson, Hutchinson, Tansae, and as a director and officer of The Fontron Loan and rust Company, Hutchinson, Kansas. 'J "B. Sawyer, for permission to serve at the same time as a ;ILIrector of The First National Bank of Hutchinson, Hutchinson, : 44as, and as a director and officer of The State Bank of —"lien, Haven, Kansas. Lr. D • G. Hansen, for permission to serve at the same time as a director and officer of The First National Bank of Logan, Logan, , ansas, and as a director and officer of The Farmers State Bank, '4Peed, Kansas. 14r.. eltrIViltrout, for permission to serve at the sane time as director and officer of The First National Bank of Logan, Logan, ,,,,11042, and as a director and officer of The First National Bank "Prairie View, Prairie View, Kansas. j ohn A. Reed, for permission to serve at the same time as a i irector l and officer of The First National Bank of Kemmerer, Bnfer, as a director of the State Bank of Big Piney, R *J1leY, Wyoming, and as a director of the State Bank of Pinerinedale, Wyoming. 14r. II „ 44Ter P. Napier, for permission to serve at the save time ta director and officer of The Alamo National Bank of San br °1110, San Antonio, Texas, and as a director of the San Antonio anch of the Federal Reserve Bank of Dallas, San Antonio, Texas. 4% Approved. Board, Letter dated July 30, 1934, approved by three members of the an applicant for a permit under the Clayton Act, advising 4Proval -- of his application as follows: A4 ' 418 'Swenson, for permission to serve at the same time as rector of The First National Bank of Braham, Braham, Linne: 144;:' as a director and officer of the State Bank of Lora, Mora, 0,..T ' l es'eta, and as a director and officer of the First State Bank, lannesota. Approved. Th ere were then presented the followins applications for 7/31/34 clulAges in stock of Federal reserve AP lications for ORIGINAL Stock: kstrict No. 3. tley uxtional Bank of Beord, df Bedford, Tlhe Pennsylvania First National Bank in Bedford, Bedford, Pennsylvania 411.11 No. 6. Georgia District No. 7. The Clintonville National Bank, TheClintonville, IVisconsin Pontiac National Bank, Pontiac, Illinois District No, 9 iational Bank in Pierre, Pierre, South Dakota Pirst District No, 11. Pirst National Bank in Athens, Athens, Texas 72 Total Approved. Thereupon the meeting adjourned. Executive Committee. 72 ----- 435
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