The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
A meeting of the Federal Reserve Board was held on Thursday, July 7, 1932, at 12:10 P. 1116 PRESENT: Governor Meyer Mr. Hamlin Mr. Miller Mr. James Mr. Pole Mr. Morrill, Secretary Mr. McClelland, Assistant Secretary Mr. Harrison, Assistant to the Governor. Mr. Hamlin reported that he attended the regular meeting of the "ecutive committee of the Federal Reserve Bank of New York which was held at the bank on Tuesday, July 5, 1932. The minutes of the meetings of the Federal Reserve Board held on 3.141e 27 and 29, 1932, were approved. The Board then considered and acted upon the following matters: Telegrams dated July 6, 1932, from the Chairmen of the Federal ReElerlra Banks of Philadelphia and St. Louis, and July 7, 1932, from the Chairman of the Federal Reserve Bank of Dallas, all advising that 41teetings of the boards of directors on the dates stated no changes were 14acle in the banks' existing schedules of rates of discount and purchase. Without objection, noted with approval. Letter dated july 1, 1932, from the Assistant Treasurer of the lkited States stating that his office received no applications from national b44k8 for the sale of bonds under section 18 of the Federal Reserve Act 44114g the quarter ending June 30, 1932. Noted. Letter from Assistant Deputy Governor Sproul of the Federal Reserve Of New York stating that a further withdrawal of $1,000,000 was made 04 that date from the bank's deposit with the Bank for International 10 7/7/32 -2- Se ttlements, leaving approximately 12,000,000 on deposit at sight and about .D2,000,000 invested in bills. Voted. leport of the Committee on Salaries and Expenditures on a letter dated June 24, 1932, from Deputy Governor Gilbart of the Federal Reserve 1384k of New York, requesting approval of a change in the personnel classific4ti0n plan of the bark to provide for the creation of a "Reconstruction rine-lace Corporation Section" in the Safekeeping Division of the Government /3°Ild and Safekeeping Department, and for the creation in that section of riftsen new positions, the Board's committee recommending approval. Approved. Memorandum dated July 1, 1932, from the Director of the Division °r Research and Statistics recommending that Miss Beatrice Bulla, an el°1°1°Yeet in that division, be granted a leave of absence without pay during tile Period from July 13 to August 17, 1932, inclusive, in order that she 144Y attend a course in money and banking at the Harvard Summer School. Recommendation approved. Telegraphic reply, approved by five members of the Board on Ally 1, 1932) to a telegram of that date from Deputy Governor Rounds of the Federal Re8erve Bank of New York requesting authority for an advance, in accordance ith the provisions of section 10(b) of the Federal Reserve Act, as amended, tO the Perth Amboy National Bank, Perth Amboy, New Jersey, in the amount of 063nr, o-., for a period of ninety days, at a rate of 5 1/2% per annum, and on the security of unsecured customers' notes aggregating :%97,035.42; the advance bei, .‘'Ig desired to meet withdrawals caused by purchases of merchants in el4tie iPation of the new tax law and to meet heavy withdrawals after July 1, ii 7/7/32 -3- is the interest payable date at the bank. The reply stated that the Board authorizes the advance subject to the terms and conditions re commended. Reply unanimously approved. Telegraphic reply, approved by five members of the Board on July 1, 1932, to a telegram of that date from Deputy Governor Rounds of the Federal Reserve Bank of New York requesting authority for an advance, in accordance With the provisions of section 10(b) of the Federal Reserve Act, as amended, to the First National Bank, Carteret, New Jersey, in the amount of :7,50,000, a period of ninety days, at a rate of 5 1/2% per annum, and on the esmIrity of miscellaneous securities with a market value of Q98,990; the acivalice being desired to meet withdrawals which have already been made and l'141.,her expected withdrawals following the crediting of interest on savings accolInts on July 1. The reply stated that the Board authorizes the advance ellhiect to the terms and conditions recommended. Reply unanimously approved. Telegraphic reply, approved by five members of the Board on July 5, 1932, to a telegram of that date from Deputy Governor Zurlinden of the ?edsral Reserve Bank of Cleveland, stating that the National Bank of Commerce, t°11LIIII Ohio, has requested a further renewal of the advance of U25,000 114cle hIr the Cleveland bank, in accordance with the provisions of section 34(h) of the Federal Reserve Act, as amended, under authority granted by Ihs Board on April 5, 1932; Mr.Zurlinden stating that the renewal is 4"esearY pending the approval of a loan from the Reconstruction Finance C°1130ration and that approval of the bank's request is recommended. The 41/kY stated that the Board authorizes the renewal for a period of thirty 12 7/7/32 -4- daYs at a rate of 5 1/2% per annum. Reply unanimously approved. Telegraphic reply, approved by three members of the Board on July 6) to telegrams dated July 1 and 5, 1932, from Assistant Deputy Governor GidneY of the Federal Reserve Bsnk of New York requesting authority to purchase fram the Caldwell National Bank, Caldwell, New Tersey, :i.38,000 of tax 40tes of the Borough of Caldwell; the reply stating that the Board authorizes the purchase with the understanding that the notes meet all requirements Or Regulation E except that the population of the issuing municipality is 1°88 than 10,000 and the amount offered exceeds 255-7; of the total outstanding warrants of the municipality. Reply approved. Reply, approved by six members of the Board on JUly 1, to a letter clEttect May 17, 1932, from Deputy Governor Logan of the Federal Reserve Bank °Ib New York requesting approval by the Board of the payment, at the proper tilfle, of fees not exceeding in the aggregate the sum of 5,000 to Jenkins, et Hitchcock, Esqs., attorneys at law, Binghamton, New York, for 71ces to be rendered by them in connection with the prosecution of two ' 861 14'eferred claims filed by the Federal Reserve Bank of New York against the State Bank of Binghamton and E. C. Brewer Company, private bankers, 414ertsvil1e, New York; the reply stating that the Board has approved the 1113°P0aed payment of fees which are to cover all services in connection with th° Proceedings in the trial court in connection with both claims. Reply approved. Letter to the Federal Reserve Agent at Richmond, approved by five blellIbers of the Board on July 6, inclosing a copy of a letter dated Tune 20, 7/7/32 -5- 1932, fram the Comptroller of the Currency recommending approval of the aPPlication of the Planters National Bank in Fredericksburg, Virginia, for P"miesion to exercise full trust powers, and a copy of a memorandum on the Subject prepared in the Board's Division of Examinations; the Board's letter stating that in the light of all the information now available it would aPPear that the Board would be justified in taking favorable action on the 1384°8 application without awaiting the next examination of the institution, a8 reconnended by the executive committee of the Federal Reserve Bank of Richmond. The letter also requested that the agent resubmit the matter to 418 executive committee for further consideration on the basis of the additional information contained in the Board's letter. Letter approved. Letter to the Federal Reserve Agent at San Francisco, approved by si4 Menbers of the Board on July 5, 1932, stating that the Federal Reserve 8°411*(1 has considered the application of the Vancouver National Bank of '9-ellecuver, Washington, for permission to act as guardian of estates, Saaignee, receiver, committee of estates of lunatics, or in any other tiduciarY capacity in which state banks, trust companies or other corporaWhich come into competition with national banks are permitted to act 1111der the laws of the State of Washington in addition to the right heretogranted by the Board to act as trustee, executor, administrator and l'eeiatrar of stocks and bonds, and that in view of the condition of the -leant bank, as disclosed by the report of an examination made as of " 4111 41 1932, and, in accordance with the recommendation of the executive ttee of the San Francisco bank, the Board has decided not to approve the aPplication. 7/7/32 -6Letter approved. riemorandum dated Tune 29, 1932, from the Board's General Counsel stating that the recent decision of the Circuit Court of Appeals in the ease of Lucas v. Federal Reserve Bank of Richmond involves several points Of interest and importance, and suggesting that a copy of the opinion be 1511bliehed in the next issue of the Federal Reserve Bulletin, together with 4 brief introductory statement in the form attached to the memorandum. Recommendation approved. Letter to the Secretary of the Treasury, approved by six members of the Board on July 2, 1932, stating that many of the checks and drafts received by Federal reserve banks from collectors of internal revenue, ecalectors of customs,and other depositors of public money for collection ella credit to the Treasurer of the United States, are drawn on banks which 11"tc hot members of the Federal reserve system, and that the Federal Reserve 411k of Atlanta has advised that while certain of the nonmember banks in its district are willing to remit at par for such checks and drafts, they e Unwilling to pay the Federal tax on their own checks and drafts sent to ' 41 the Federal reserve bank in payment for such items and are deducting two cellte for each remittance to reimburse them for the tax, and that, in these circUrastances, the Board would appreciate rulings from the Treasury Depart1313.t on the questions (1) whether the tax imposed by section 751 of the 11"antle Act of 1932 applies to checks and drafts drawn by banks on their e° eePondent banks in remitting to Federal reserve banks for checks and 1.t4-tt13 drawn on themselves payable to officials of the Government in their °tticiel capacities anti sent to the drawee banks by the Federal reserve banks tcl. collection, (2) if so, whether the issuing banks may deduct two cents 7/7/32 -.7- each remittance to reimburse themselves for the tax, and (3) if so, Whether the Treasurer of the United States will accept credit on the books Of the Federal reserve bank for the amount of the checks and drafts covered by each remittance mdnus the two cent tax on the remittance check or draft. Letter approved. Letter, approved by five members of the Board on July 5, 1932, to the Governor of the Federal Reserve Bank of San Francisco as Chairman of the Governors, Conference, referring to the payment by Federal reserve banks of 131 ' enlitums on the insurance under their group policies on the lives of officers an(1 employees who have been retired because of disability or incapacity, and Stating that, while the Board is disposed to offer no objection to the continuance of the insurance in such cases where the officer or employee affected haa been in the service of the Federal reserve bank for a long period and has reached an advancedage, it is felt that it is desirable that there should be Uniformity in the treatment of officers and employees of all Federal reeel*ve banks and that the Board is not disposed to favor the retention of el°Yees on the payroll of a bank in such cases. The letter suggested that the tatter be referred to the insurance committee of the Governors' Conferor consideration and, if deemed advisable, for negotiation with the inftxance companies with a view to having a uniform rider attached to the gr°111) life insurance policy of each Federal reserve bank which will permit the insurance of officers and employees retired because of disability or °14 age to be continued by the reserve bank without the necessity of retainon the payrolls of the bank. The letter further stated that if (1°11rse should be decided upon, the Board would be glad to have the tecaramendation of the committee as to the class of cases in which the 7/7/32 -8-- Ilmurance should Properly be continued with particular reference to what age and what minimum period of service should be required in such Cases. Letter approved. Letter to the Federal Reserve Agent at Minneapolis, approved by six taella)ers Of the Board on Tuly 6, 1932, stating that the Federal Reserve Board 1148 aPproved the drafts of by-laws of the bank and its Helena branch subtaitted with the agent's letter of Tune 21, 1932 with the understanding that the second sentence of section 2 of article III of the latest draft of the by..1 awe of the Minneapolis bank will be stricken out and the second and third sentences of section 2 of article III as contained in a draft forwarded with the agent's letter of May 7, 1932, will be substituted therefor bethe proposed revision is adopted by the board of directors. The letter ale° requested that the Board be advised when the proposed revisions of the bY-14w8 of the head office and Helena branch are approved by the board of 4irectors of the bank. Letter approved. Reports of Standing Committee dated July 5, 1932, recommending el3Proval of the following changes in stock at Federal reserve banks: nlication for ORIGINAL Stock: -1)*eirst ,4 4.1sAJJ0. 10- NationAl Bank in Loveland, Colorado. .1,16:A il gm_1:7 Shares 60 60 45 45 120 120 A SURRENDER of Stock: 4488et National Bank, Cohasset, Lass. (V.L.Abs. bY Rockland Trust Company, Rockland.) "0 — 1)1 "e" e eat Grove National Bank, Ocean Grove, N. J. (Insolvent) 7/7/32 -9- APtalkTis for SURER of Stock: (Cont,d) District No. 4. First National Bank, Sutersville, Pennsylvania. (Insolvent) 11. Arasrican National Bank, Beaumont, Texas. (Cons. of American National Bank and City Nationni Bank of Beaumont) Shares 30 210 Total 30 210 405 Approved. Report of Standing Committee dated July 6, 1932, recommending approval °f the following Clayton Act application: Mr. A. T. Daly, for permission to serve at the same time as officer of the First National Bank of Birmingham, Alabama, and as director and officer of the North Birmingham American Bank of Birmingham, Alabama. Approved. Thereupon the meeting adjourned. 411PrOired:
@FedFRASER