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(")47'
0
A meeting of the
Federal Reserve Board was held in Washington
01171
ednesday, June 20, 1934, at 11:00 a. in.
PRESENT:
tte
Mr. Black, Governor
Hsmlin
Mr. Miller
Mr. James
Mr. Thomas
Mr. Szymczak
The Board met in executive
session and considered the following
3
Gcivernor Black stated that he had been informed that it would be
41151111 to the
freasury Department if the Board would arrange for space
(111t3ide or the
Treasury buildingfor its offices now located in the
14111(114, Par
ticularly in view of the fact that the Board is authorized
ti°11 4 of the
industrial credit bill (S.3487) which was signed by
tte
:
4e3iclellt Yesterday, to erect a
building for the purpose of providing
111t4ble 44d adequate
quarters for the performance of its functions, and
'
t eileti a
move were
made as soon as possible instead of moving temporarily
14t° the n
t4et
SPaCe in
the Treasury building proposed for the offices of
o,,t4
110/ housed in
the building and a later move when the Board's
Q111.1di- .
Ile 1S
ready for occupancy.
t
After discussion, the Governor was requested
rr,.
)
! take the matter up with the aecretary of the
:
4',"surY and to advise him that the Board will act
;2ulrelY in accord with the desires and convenience
the Treasury Department.
.With the approval of the Board, the Governor
TPolnted a committee, consisting of —essrs. Liller,
31
1.. .
413 and Szymczak, to make a survey as to possible
2tea in
'
31?-Cht be Washington upon which the board's building
erected and as to the probable cost of such
. 1tes, and to submit its recommendations to the
1_833
Also with the approval of the Board, he appointed
a canmittee, consistinE of Lessrs. Willer, Tames and
Hamlin, to make an investigation and to submit recommendations to the Board, with regard to an appropriate
building to be erected for the Board.
The Governor then referred to the semi-annual
assessment by
the
Pederal Reserve Board
upon the Federal reserve banks to cover the
B°411die e
stimated expenses for the last half of the year 1934, and he
1111361 the question as to what provisions
should be made in the assess44 to
trieet the cost of a
building site and any expenses which may be
during the six-months period in connection with the building
tc* the Board.
The Governor was requested to obtain from
Counsel an opinion as to the powers of the
Board relative to assesaments and especially
assesament under the provisions of Section
4 of the industrial credit bill and the proper
procedure to be followed by the Board thereunder.
The Governor
then reviewed the action which had been taken by
Or
the Board's staff in connection with the preparation of re0.144der the
Securities .,!:xchange Act of 1934, and he stated that
eestiolis
With regard thereto
will be submitted to the Board in the
avs.
'1111(1
Atl
lieference was then made
to the letter received under date of
3,934, from
Acting Governor Johns of the Federal Reserve Bank
4ct
ors
()trio
i
nclosin
or
Of
kiz,4
`q ozt
a copy of a resolution adopted by the board of
the bank
at its meeting on ;Tune 8, 1934, directing the
the bank
to apply
60 the Federal 1:ieserve Board for perto d
iecontinue the Havana Agency. Copies of Tr. Tohn's letter
183
6/20/34
-3arld illelosure had been furnished previously
to the members of the Board.
After discussion, upon motion by Lr. James,
the Governor was requested to arrange for a
meeting in Washington of representatives of the
American and Canadian banks operating offices in
Cuba, for the purpose of discussing with such
representatives the question of the discontinuance
Of the agency.
the • 14.,_
At the Conclusion
of the executive session, the Governor advised
secretary, Lr. 14orri1l, as to the foregoing proceedings and
reqUeetea
htlerai
to record the actions as set forth above.
The minutes
of the meetings of the Executive Committee of the
Reserve Board held on Tune8 9, and 11, 1934, were approved
and
amtiam
'43 recorded
therein were ratified unanimously.
The
h4e 12
'
minutes of the meetings of the Federal Reserve Board held on
141 1934, were approved.
The Board then considered and acted upon the following
matters:
Telegrams dated June 19, 1934, from Ls.. Powell, Secretary of the
44eraa
Reserve Bank of
Minneapolis, and June 20, 1934, from Ir. Austin,
kti
e11134111411 °f the Federal Reserve Bank of Philadelphia,
and Lr. Wood, Chair-el' the
Federal Reserve Bank of St. Louis, all advising that, at meet14" the
boards of directors on the dates stated, no changes were
made
Illtilebe4ks' existing
schedules of rates of discount and purchase.
Without objection, noted with approval.
Latta
r to izr.
te
Austin, Federal Reserve Agent at the Federal Re40,
or Phi
ladelphia, reading as follows:
krie 1T1 aeeordance with the request contained in your letter of
-' 1934, the Federal Reserve Board approves the granting
6/20/34
-4s leave of absence of five weeks to Margaret J. Reid,
secretary-stenographer in your office, and to
Lr. Z. G. Fenner,
i
examiner and acting assistant ylederal reserve agent, and a
,2470 of absence of one month or a few days more to accommodate
b4s circumstances in the individual case, to
each of the five
?ther examiners listed in your letter, it
being understood that
41 40 event will the leave of absence granted to any one of
the
eluManers be
in excess of five weeks."
Approved.
lieflelnre
Tel-egraM to
Li.. Case, Federal
eserve Agent at the Federal
13aak of New York, reading as follows:
to
Dillistin's letter dune 13. Board offers no objection
"Ither temporary employment, if necessary, as assistant exam-Q.ers
of the sixteen men who were borrowed from the Guaranty Trust
C41°4
Eill,24Y and the National City Bank, with the understanding that
t4isn' arrangement expires June 30, 1934, as set forth in Mr. Dillis,'s letter."
Approved.
Ileaerve
Tel
egram to Mr. Williams, Federal Reserve Agent at the Federal
Ballk of Cleveland
reading as follows:
4884 "Answering your letter June 13, 1934 relating to temporary
4gtment sameone from your bank to assist in Board's Division
ot 4E4
44tt„ inations,
Board appreciates your spirit of cooperation in
yhtalj wad will be glad to have you
send Harold E. X. Smith to
lizediale.torl at earliest available date with understanding, as outbenk to tlY letter of June seventh, that Board will reimburse
„,
Der A, 4* ais necessary traveling expenses, salary and six dollars
-4ela while in Washington. Kindly advise when he will report."
Approved.
te4k
egram to Mr.
Wood, Federal Reserve Agent at the Federal Re°t St. Louis, reading as follows:
"Ans"rine your letter June 12, 1934 relating to temporary
sat
someone from your bank to assist in Board's Division
f4 e itati
Board appreciates your spirit of cooperation in
Al,: U will
be
glad to have you send A. H. Powers to Washing-. e n-I,
-J"klest available date with understanding, as outlined in
48
Si
6/20/34
:tRY letter of
Tune seventh, that Board will reimburse bank for
necessary
travelinr expenses, salary and six dollars per
d'
lez while in
Washington. Kindly advise when he will report."
Approved.
Telegram dated June 18, 1934, approved by
six members of the
11c)I'd, to
essrs. Young, iarrison, Borris, eay, and
Calkins, Governors,
l'ePectivelY, of the Federal
Reserve Banks of 3oston, New York, rhilailichmond, and San Francisco, and Acting Governor
Johns of the
lieserve Bank of Atlanta, reading as
follows:
ac "Referring
Board's Tune 5 wire and replies thereto regarding
00, 114tirle conference, Governor Fancher,
Chairman of the Governors'
tii'Lerenee Committee on
fiscal agency operations and reimbursements
iqtt
'
el,
efOr, has been consulted on
subject and both Board and Governor
perl ekler feel that
while a conference of representatives from all
tiVial Reserve
banks is not necessary at this time, it is important
;
ri
a committee
be designated to review reports (B-941) covering
clereir€13
,;,€teencY, depositary, and custodianship work
and to submit
le coroniendations covering chances in
'
expense
reports necessary
t,01,14'ovide
accurate and complete cost rigures relating thereto and
Wa8 111i_f°rmitY in requests for
reimbursement for such expenses. It
t!ezt,4.Qe3ted that representatives
designated by Governors Fancher,
and LicKinney, who constitute the
committee of the Governors'
aell: ce
alirZ
j,
3subject, representatives desienated by Governors
and representatives from the Board meet in
4° f°r purpose of considering
this subject, failed ba,ak account(1,
11,.e
,s as recommended by Governor Geery, and any
other accountGover
ip;
°u4.als which banks might
like to place on program, and the
811€:ge °113 Of those
banks have signified their concurrence in this
ellica,%1°11. Accordingly, such a
committee meeting will be held in
13/soz
°a Xune 27 and Board will be
pleased to receive by wire
kly a
eot.zid,„
-List of any accounting questions you would
like to have
at that time."
Z
J.141, -ilTproved, together with telegrams also
dated
1934, and approved by six members of the
ard, to the governors of other Federal
reserve
advising them in accordance with the telegram
czuove referred
to.
r
KINA
to
'4.1'ara dated
June 19, 1934, approved by six members of the
"11.
:7.0:cton, Federal Reserve
Agent at aichmond, referring to
11.837
6/20/34
the e
,,
144ication of thenAmerican Bank and Trust Compane,
Suffolk, VireilliEt) tor permission to withdraw iunediately from membership in
the
4ciellia Reserve
System, and stating that the Board waives the usual
telliireraelat of six months notice of
intention to withdraw and that,
"c°r`tillelY, upon surrender Of the Federal reserve bank stock issued
to
the American
Bank and Trust Company, the Federal Reserve Bank of
1114111°4(1 18 authorized to cancel such stock and make'a refund thereon.
+
44egram
suggested, however, that Mr. Boxton advise the bank that
betc>te withdrawing from membership it should
carefully consider and be
41t°rmed as to its status in connection with the
Federal Deposit
kettr,
A'ues
Corporation.
Approved.
Iteaerve
Tel
egram to Mr. Peyton, Federal Reserve Agent at the Federal
81111k of Minneapolis, referring to the application of the"Dakota
4ttite
1,ct 8441e, Dakota,
Minnesota, for permission to withdraw immediately
te2 berta,4
in the Federal Reserve System, and. stating that the
irt hclt
.788 the Usual requirement of six months notice of intention to
that
44,4k
accordingly, upon surrender of the Federal reserve
atom,..
48sued to Dakota State Bank, the Federal Reserve Bank of
kike
401
la is authorized to cancel such stock end make a refund
thereon.
Approved.
I.etter dated June 19,
1934, approved by six members of the
to
4
Newt°A, Federal Reserve Agent at the Federal Reserve Bank
4411ta,
"
ding as follows:
6/2°134
-7-
"Reference is made to your letter of June 12, 1934, inclosing
!,ecTY of a letter dated June 9, 1934, from the'Union Trust Company',
Petersburg, Florida, wherein the bank requests an extension of
of one year from July 13, 1934, within
which to comply with the
Pzovisions of
condition of membership numbered 21 which provides
that:
•
'Within six months after the admission of such bank to
zembership, the 422 shares of its
own stock held by
trustees as security to certain loans made by such bank
in accordance
with the terms of an agreement dated
January 16, 1932, shall be disposed of at an equitable
Price and the proceeds applied in accordance
with the
terms of such agreement.'
yo "In view of all the circumstances and
the recommendation of
J-7, r executive Committee, the Board gramts an
extension of time to
;
v .-.11arY 13, 1935, within
which the Union Trust Company may comply
the
provisions of condition of membership numbered 21, and it
." requested
that you advise the bank accordingly."
Approved.
to*.
Letter dated
June 19, 1934, approved by six members of the Board,
04letteoSteve") Federal Reserve Agent at the Federal lieserve Bank of
' reading as
follows:
1.4 "Receipt is acknowledged of r. Young's letter of May 22,
1934,
prp:„.°11nect10n with the absorption by the 'Frankenmuth State Banle,
Michigan, of the American State Bank, Frankenmuth,
ity le") whereby
the member bank assumed 40/0 of the deposit Habil41))
. Of
Arnerican State Bank and acquired a like amount of acceptthe'
"sets
.
org '
jilt is observed that
the Frankenmuth State Bank effected a reilisti
i°A in July, 1933, and the plan of merger of these two
b/ik
"nz Provides for an adjustment of the capital of the member
Of bo
: 111 amount
equal to the assessments paid in by stockholders
op1lli"4 ins
titutions. In this connection the Board desires an
Of
Your counsel as to the legality of the reorganization
°r the °t
44teVrankenmuth State Bank, and the merger with the American
b
j:jank. Information is also desired
as to whether the member
liable for the repayment of waived deposits of
elther3oPlI
ZZ
.
"The e4Nr1ce
tioard will
take no action in this matter until definite
ot the haa been
received as to the proposed adjustment of capil,a1
illeraber bank, the legality of the reorganization and merger,
6/20/34
-8Your recommendation as.to whether the transaction has resulted
131.anY change in the general character of the assets of, or broad111 the functions exercised by, the member bank which would
coustitute a violation of the conditi
on under which the bank was
adzitted to membership."
Approved.
Letter dated Tune 19, 1934, approved by six members of the Board,
tol4r. Stevens
, Federal Reserve Agent at the Federal Reserve Bank of
-go) reading
as
t
follows:
"Reference is made to Yr. Young's letter of Tune 6, 1934,
a report of examination of the 'Citizens :.- -tate Bank
a Sheboygeat, Wiscons
in, as of nay 7, 1934, and requesting advice
es to the elimination of losses require
d by the Comptroller of the
rncY in connection with his approval of the operation of re'
714g and disbursing stations by the bank.
or., "on February 26, 1934, you were advised that the Comptroller
ore Currency approved the operati
on by the Citizens State Bank
*-11ehoygan of
receiving and disbursing stations at Cedar Grove
1;;d 6heboyea
n 2al1s, Wisconsin, subject to a condition that the
la"would charge off or otherwise eliminate all losses and deofeclatiOn in the lower grade securities as shown in the report
e:• camiaation
/Is of October 30, 1033. Upon Lr. Young's recom1011, the matter of an extension of time in which the
bank
•
:
rai 41 be Permitt
ed to eliminate losses and depreciation was subto the Comptroller
of the Currency, and on narch 21, 1334,
were advised that the Comptroller approved an extension of
tY days from March 1, 1934, in which tu charge off or elimi14 i'l,e111 losses and all depreciation in securities other than
those
:
t10 8 four* highest grades as shown by the next report of examina7hich was to be made during that period of time.
x,eile "The
extension of time granted by the Comptroller of the Curhas expired, but upon receipt of advice that the bank has
IzajZ Off or otherwise eliminated the assets classified as esti7idea 4osses in the report of examination as
of flay 7, 1934, proat itich
charge-offs or eliminations are promptly made, the
allela will
recommend that the Comptroller of the Currency consider
tion 4eti°4 as compliance with the condition prescribed in connecbIlraiwith the approva
l of the operation of the receiving and disI4 tht stations at Cedar Grove and Sheboygan Falls, A.sconsin.
claLa -- connection
it has been noted that estimated losses as
tot tried in the report of examination included !89,086.30, the
tIJralit of depreci
te t t
ation in lower grade securities, although
c)---L net depreciation in the investment account amounted to
X
na• j
1840
6/20/34
-9::°111Y 681,555.58 on account of appreciation in the higher grade
u°1143. In the circumstances, the Board believes that it would be
Pl3roPriate to confine the request for elimination of depreciation
SeCUritie3 to the net depreciation in the entire account.
"Regardless of the condition prescribed in connection with
the authorization of the branches, the Board is
of the opinion,
as expressed in
its letter of April 4, 1934, X-7848a, that depreciation in the lower Krade securities (after allowance in this
case for appreciation in the higher grade securities as describ
ed
alL°17e) and estimated losses in other assets should be promptly
c"arged off or otherwise eliminated.
"The report of examination contains criticisms of the operati
of the trust department, particularly in regard to its poor
'
ilrec°rde, control of securities, and policy of purchasing trust in2atraents from the bank and affiliated Citizens Security Company;
tb
active dealing in securities and solicitation of orders, and
advance of funds for such purchases through carrying cash items;
i, the appropriation of dormant balances to the bank's use. It
c7,,aesumed that you will endeavor to obtain corrections of these
aelticized matters, and you are requested to keep the Board advised
t° the progress made in effecting the desired corrections.
ro
The report of examination does not contain the complete inrequested in the Board's letter of February 26, 1934,
pa
,
,
ltrding the bank's investment in, and advances to, the American
a.,-"Lor Frame Company (Nordby Furniture Company)
,and it will be
41'eciated if you will forward the information request
ed."
Approved.
-,
"
- Itt)ram dated June 19, 1934, approved by six members of the Board,
to
4,4343
Eederal Reserve Ac;ent at the Federal Reserve Bank of
°JAY, reading
as follows:
the ,:The Board
will interpose no objection to the absorption of
LiborY State Bank, St. Libory, Nebraska by The kiommercial
,rrand Island, Nebraska, in accordance with the plan as set
is a ,44 Your letter of June 13, 1934, provided that your counsel
thatl""fied with the legal aspects of matter. It is understood
St. 1., 1320rPtion will not result in establishment of branch at
will ,13c3rY but definite advice on this point for Board's records
e appreciated and you are also requested to forward copies
Or e.j
pz.0 ./ agreements covering the absorption and give reference to
v1sioaa
Of tate law, if any, covering such absorption."
Approved.
6/20/34
-10Letter dated June 19, 1934, approved by six members of the Board,
to LT,.
- Z. G. Fenner, Acting Assistant Federal Reserve Agent at the Fede"41. Reserve
Bof Philadelphia, stating that, in compliance with the
Iridation made in his letter of June 14, and in view of the exception111 ell'eUmstances set forth therein,
the Farmers and Merchants Bnnk, New
0Zrord, P
ennsylvania, is granted an extension of time to June 23, 1934,
17ithillwhich to submit Form 231.
Approved.
Letter to Lir. Newton,
Federal Reserve _Agent at the Federal Reserv,e Bazik
°f San Francisco, reading as follows:
i4 1 "This refers to Mr. Sargent's letter of May 28 with the
stc“
)sed new application for the cancelation of 42 shares of
oj
tck of the Federal Reserve Bank of 3an Francisco previously
andin,C in the name of the Lincoln County State Bank,
ti;,'1113°rt, .:ashington. It is noted that the original applicae_-4 submitted with Yr. Sargent's letter of April 6, 1934, was
oneously signed by Howard H. Hansen as receiver and, therethe new application was obtained executed by ir. Hansen
111,78 °aPecity as Supervisor of Banking for the State of Wash?11, in which capacity it is understood he is authorized to
rr(Viate the affairs of
the subject bank. It is also noted,
beal;:
T,:ellgel's telegram of May 29, that the Federal eserve
oell'',8t00k outstanding in the name of the subject bank was canon that
date.
the ciremsitances, the i:oard will consider the new
'4-Lic4tion as a ratification of thLt previouJly submitted."
Z
Approved.
Letter
dated Tune 19, 1934, approved by six members of the Board,
1711tionni
II]xchanze
1,01.lows:
Bank of Fond du inc", Fond du Lac, Wisconsin, read-
"The 44lie
zederal Reserve Board has given consideration to your
litpt
°11 f°r permission to exercise fiduciary powers, and
10; Y°11 permission to
act, when not in contravention of ,State
°`atete
:
1 law, as trustee, executor, administrator, guardian of
' and committee of estates of lunatics, the exercise of
-11"all such rights to be subject to the provisions of the Federal
Reserve Act and the regulations of the Federal Reserve Board.
"This letter will be your authority to exercise the fiduciary
14were granted by the Board. IL formal certificate covering such
'
e llthcrization will be forwarded to you in due course."
Approved.
Letter to the Federal reserve agents at all Federal reserve
baza s,
'
l eading as follows:
.1. ,
"During the past several years the board has taken the posilon that it would not admit
to membership in the Federal Reserve
stem trust companies which do substantially no commercial bankin
g
31
,
1314e23, but recently it reviewed the question and decided that it
Uld give consideratio
n to applications for membership from trust
41Panies of this type.
ad, . "If there is any •trust compan
y in your district that has been
dj
laed that it would not be admitted to membership because it
was
substantially no commercial
banking business, the Board dethat you inform it that the Board will give consideration to
application for membershiT)
if it desires to file one."
j
Approved.
Letter to Mr. O'Connor, Comptr
oller of the Currency, reading as
r011owa:
ett "The l'ederal Reserve 3oard approves a reduction in the common
Pltal
sock of'The National Bank of _Atzgerald', Fitzgerald,
4
\re
i°:t?Dia,
ci
fram 400,000 to ,50,000, pursuant to a plan which proDIvs that the bank's capital shall be increased by _50,000
of
tioa
"
red stock to be sold to the Reconstruction Finance Corporaad that the released capital, togeth
er with the proceeds
as etuer adjustments, shall be used to eliminate unacceptable
ill the amount of approximatel a282,0
98, all as set forth
y
tio4
:
c Awalt's letter
of June 13, 1934, and the plan of reorganizaated
February 21, 1934, as amended May 22, 1934."
Approved.
Letter
to 24./.. O'Conn
tco)
A0114:
.
or, Comptroller of the Currency, reading as
14 accordance with Acting Comptroller of the Currency Awalt's
4,1 fi-1.4!‘1".
6/20/34
-12-
:Feccrmflendation, the Federal Reserve Board approves a
reduc'
104 in the common capital stock of
'The DeWitt County National
8ank of Clinton', Clinton, Illinois, from 400,000
to ,;70,000,
Pursuant to an amended plan which
provides that the bank's capi1 shall be increased by 30,000 of
preferred stock to be sold
Reconstruction l'inance Corporation and/or others, and
uhat.the released capital shall be used to
eliminate a corresP,°11cling aldount of unsatisfactory assets, all as set forth
in Ia..
,odalt's memorandum of
lune 8, 1934.
,
2 "This approval supersedes
the Board's approval on December
1933, of a previous plan which provided for the sale of
4$°0° of
preferred stock and a reduction in common capital stock
Or'
ve0
,000."
Approved.
follows:
Letter to L,:r. O'Connor, Comptroller
of the Currency, reading as
"14 accordance with your
recommendation, the Federal Reserve
etproves a reduction in the con= capital stock of 'The
lational Bank and _rust Company of Kalemmzoo', Kalamazoo,
pre
o
e.4) from .X00,000 to ,;200,000,
to a plan which
or flcies that the bank's capital shallpursuant
be increased by the sale
pozi5
:?°)000 of preferred stock to the /ieconstruction
Finance Corc04
;,and that the released capital,
together with a voluntary
.zail,ibution of at least _250,000 and such portion of the bank's
be "I-113 1 Undivided profits and reserves as mny be
necessary, shall
ly .1
8, c1 to eliminate unsatisfactory
assets aggregating approximateall as set forth in your memorandum of ;Tune 2, 1934.
QC1pi4
:411 considering the plan under which the reduction
in common
the
1.0 to be effected, it was noted that there will rmain in
161,tele 's assets securities
depreciation in the amount of approxicflpitY11400 which, if considered as a loss, would impair
its
1/o1.141::- aPProximately 31,400.
There will also remain an excessive
°f slow and apparently frozen assets.
kellt ITt
17e., noted further that your examiner criticized the
manage"'S bank under
which heavy losses have been sustained for
Irears past. It is assumed, however, that you have these
17111 00.113 14 mind and that whenever it is feasible to do so you
'
41in such further corrections as my be
practicable."
Approved.
Letter +-, „
''Ar. O'Connor Comptroller of the Currency, reading as
6/20/3,1
"In accordance with Acting Comptroller Awalt's recommendation,
the Federal iteserve Board approves a reduction in the common
capital stock of the 'First-Cannelton National
Bank', Cannelton, Indiana,
f!cal ,,;75,000 to _37,500, pursuant to a plan which provides that
he
released capital, together with a portion of the bank's surplus
euldior undivided profits accounts, shall be used to eliminate unsat
isfactory assets in the amount of approximately ,50,000, all as
set forth in 1,:r. Awaltis memorandum
of June 8, 1934."
Approved.
Letter dated June 18, 1934, approved by six members of the Board,
to Mr ,
'° Connor, Comptroller of the Currency, reading as
follows:
In accordance with your recommendation, the Federal Reserve
Boa.
d aPproves a reduction in the common capital stock of 'The
ilati on
rr
L Bank in North Kansas City', North Kansas City, Missouri,
,000 to .25,000, pursuant to a plan which provides that
the
to,
bank's capital shall be increased by 25,000 of preferred stock
rolue sold to the Reconstruction Finance
Corporation, and that the
elles3ed capital shall be used to establish a reserve for contin10 cies account for the specific purpose of eliminating estimated
e_sses and substandard assets
designated for removal at subsequent
4aM
inations, all as set forth in your memorandum of Tune 5, 1934."
Approved.
to
14r.
Letter dated
Tune 19, 1934, approved by six members of the Board,
C°1111°P, Comptroller of the Currency, reading as follows:
the "In accordance with Acting Comptroller Awalt's
recommendation,
tea :
P dera.l Reserve Board approves a reduction in the common capin;?sek of "fhe Tacksboro
National Bank', Jacksboro, Texas, from
ezlIZo to %;25,000,
pursuant to a plan which provides that the bank's
to'thal shall be increased by the sale of ,;25,000 of preferred stock
lie
construction Finance Corporation and that the released
or 41 shall be used to eliminate or reduce a corresponding amount
TIkla r)e sirable assets all as set forth in Mr. Awalt's letter of
e ') 1934.”
Approved.
Letter to Lir.
O'Connor, Comptroller of the Currency, reading as
1845
° 20/34
-14-
"In accordance with the recommendation of Acting Comptroller
Awalt, the Federal Reserve Board approves a reduction in the com14°n capital stock of 'The First National Bank of Hood River', Hood
River, Oregon, from çiOO,OOO to .,:'?25,000, pursuant to a plan which
Provides that the bank's capital shall be increased by ::.50,000 of
t
" Preferred stock to be sold to the Reconstruction Finance Corration and ,25,000 of /B' preferred stock to be sold to shareand local interests, and that the released capital, toher with part of the undivided profits shall be used to elimiaate substand
ard assets and securities depreciation aggregating
PProximately 84,273.77, all as set forth in IL.r. Awalt's letter of
Ufle 13,
1934."
r
Approved.
Telegram dated Tune 18, 1934, approved by six members of the
to la-.
Peyton, Federal Reserve Agent at the Federal Reserve :ank
°rkitligeapolis, stating that the Board has given consideration to the
a"liatthla of the "First Bank Stock Corporation", Minneapolis, Minnefor a
voting permit under the authority of section 5144 of the
41secl. S
tatutes of the United States, as amended, entitling such
(Irkrlizatiori to
vote the stock which it owns or controls in "The Seaationai
Bank of Huron", Huron, South Dakota, and has autnorized
th
izatlallcs of a
limited permit to the applicant for the following
to
'" anY time prior to August 1, 1934, to act upon a proposal
3
proi7
,,
end the articles of incorporation of such bank so as to
'
46 for a minimum of five and a maximum of eleven directors."
tel
also authorized the agent to have prepared by counsel for
?ed.
era)
if reserve bank, and to issue to the First Bank Stock CorporaIrilited voting permit in accordance with the telegram.
Approved.
Letter to Honorable Maican U. Fletcher, Chairman of the Senate
1846
6/20/34
-15Cc/Itraittee
on Banking and Currency, reading as follows:
"This refers to the letter from the Acting Clerk of your
ComMittee dated April 13, 1934, requesting
a report on S.3:.;32,
ntitled 'A Bill To amend an Act entitled "An Act to provide
lull and fair disclosure
of the character of securities sold
interstate and foreign commerce and through the mails, and
0 prevent frauds in the sale thereof
, and for other purposes",
/1PProved May 27, 1933'.
"It is understood that a number of amendments similar to
those
contained in the said bill have been incorporated in the
Securities .:xchange Act of 1934, which was approve
d Tune 6, 1934,
!nd, in such circumstances, it is assumed that
no report on
3332 will be necessary."
Approved.
Letter dated June 19, 1934, approved by six members of the
80fird 3
t° Mr. Peyton, Federal Reserve Agent at the Federal Reserve Bank
reading as follows:
"Reference is made to your letter of June 7, 1934, concerning
Westion of whether a permit under Section 32 of the Banking
(la °f 1933 is required in connection with the service of Mr.
arnas Bardon as a director of the Union National Bank, Ashland
;W
,
yo,!°flein, and as a director of the Mininc7, Shares Corporation, New
-4) New York.
rroi, "The Board feels that the informa
tion contained in the letters
izs; 14r. Bardon and in the corporation's statement of December 31,
:
pri
j! is insufficient to enable it to determine whether or not the
B0
eions of Section 32 are applicable to this relationship. The
rajzi'd therefore
believes that it is desirable for hr. Bardon to
torma!PPlication for a permit under Section 32 upon the Board's
the
rorm "In addition to the information requested in the Board's
Bardon should furnish the information outlined on page
Board's letter of March 12, 1934 (X-7820). It will be
iated if you will advise Mr. Bardon accordingly."
Approved.
Lett-ers
dated June 18, 1934, approved by six members of the
80
41'cl) to
app-4-ants for permits under the Clayton
Act, advising of
vroirea
°r their applications as follows:
817
6/20/34
-16Roscoe L. Blight, for permission to serve at the same
as a director of The First National Bank of Laurium,
Michigan, and as a director and officer of Keweenaw
'
L av illes Bank, Mohawk, Michigan.
L ' Edward M. Lieblein, for permisJion to
?
serve at the same
,1133.e as a director of The First
National Bank of Hancock,
4'ahc0ck, Michigan, and as a director of
Merchants & Miners
Calumet, Michigan.
X. B. Paton, for permission to serve at the
same time
a.director and officer
of The First National Bank of
Laurium, Michigan, and as a director and officer
-4 The First National Bank of Calumet,
Calumet, Michigan.
". 11. Thompson, for permission to serve at the same time
isz a director and officer of 'lie
'
First National Bank of
l'icplecks Hancock, Michigan, and as a director of The
First
—4°4E11 Bank of Calumet, Calumet, Michigan.
"L.
Habberstad, for
6;a director
and officer
permission to serve at the same time
of ocanlan-Habberstad Bank & Trust
;
0 1.1
"flY, Lanesboro, Minnesota, and as a director
and officer
Ihe First National
Bank of Rushford, Rushford, Minnesota.
-* ,Sherman Collins, for permission to serve
at the same
e as a director and
officer of The First National Bank of
1111
"
, Negaunee, Michigan, and as a director of Gann State
s Bank,
Gwinn, Michigan.
r
• G,
'
0 s R. Christie, for permission to serve at the same
a director and officer of The Bank of Long
.1rairie,
1-11e, Minnesota, as a directer and officer of The
ottLsrs State
Bank, Bertha, Minnesota, and as a director and
eel‘ Of The First National Bank of Browerville, BrowerL
annesota.
S:
tlke
• Tilert L. Christie, for permission to serve at the same
a director and
officer of The First State Bank, Swan4ue, ,:nne50ta,
1
as a director of The National Bank of Grey
c'r
eYagl, Minnesota, and as a director and officer
Eirmers State Bank, Bertha, Minnesota.
• n
A
lobt T
Holig, for permission to serve at the same time
llowe
tor and of
of The First National Bank of
drowerville, Minnesota, as a director of The
4,
-ati°11a1 Bank of Eagle Bend, Eagle Bend, Minnesota,
kue- a director
of The National Bank of Grey Eagle, Grey
Ilimaesota.
11818
6/20/34
-17La'. Peter j-). Klick, for permission to
serve at the same
as an officer of The Bank of Long Prairie, Long 1:rairie,
nesota, and as a director and officer of The National Bank
elf Grey Eagle, Grey agle, Minnesota.
lieri'Y Lee, for pennission to serve at the same time as
;
1- aireeter and
officer of The Bank of Long Prairie, Long
lrie,1.,
1innesota, as a director and officer of The First
"ational Bank of Browerville,
Browerville, Lannesota, and
,
E13 a director and officer
of The First National Bank of
1e Bend, ,l'af;le Bend, Minnesota.
ilaYmond A. Lee, for permission to serve at the same time
;
8 a director
and officer of '''he Bank of Long i-rairie, Long
Minnesota, as a director of Ile First National Bank
Drowerville, Minnesota, and as a director of
?irst National Bank of Eagle Bend,
Eagle Bend, Minnesota.
b-,
'
'
1 4u0lPh Lee, for permission to serve at the same time
as
07;u-rector and
officer of The National Bank of Grey :b.6;le,
stetMinnesota, as a director and officer of The .:2'irst
a.121z, Swanville, Minnesota, and as a director of The
National Bank of 13rowerville, Brovrerville, Minnesota.
1llalnliodman,
for permission to serve at the same time
director and officer of The First National Bank of Eagle
Bend, Minnesota, and as a director of ithe NationOf Grey
Eagle, Grey Eagle, Minnesota.
,ipproved.
Letters
dated Tune 19, 1934, approved by six members of the
80
411, t a .1
° -1:1D-Licants for permits under the Clayton Act,
advising of ap01' their applications as follows:
1,4,4
t1B.
potzglas, for permission to serve at the same
or "a director
and officer of The Second National Bank
Or .-)Lhaliville,
Danville, Illinois, as a director and officer
Qa 4
1
'First National Bank of
Catlin, Catlin, Illinois, and
401,,`-tirector of the First National Bank in
Georgetown,
'et°wa, Illinois.
'VOOd
Martin, for permission to serve at the same
or ta;:s 11 d irector
and officer of The Second National Bank
J.z.st-11.1,111e) Danville, Illinois, and as a director of The
'e•tional Bank of Tuscola, Tuscola, Illinois.
/1
c
6/20/34
-18-
"'.r. C. V. McClenathan, for permission to
serve at the same
time as a director and
officer of The Second National Dank
ct Danville, Danville,
Illinois, as a director of First National
Ballk in Georgetown, Georgetown,
Illinois, and as a director
First National Bank in Homer, Homer, Illinois.
Xohn C. Carlson, for permission to serve at the
same
v▪ izle as a director and officer of
The First National Bank
rc)f Pine City, Pine City, Minnesota, as a director
and ofnj
'eer of State Dank of 1-iush City, Rush City, Minnesota,
and
7,7L8 a director and
officer of Chisago County State Bank, Cenu ar City,
Minnesota.
• z. T. Donaldson, for permission to serve at the
same time
• a diroc"or and officer of Lansia3
National Bank, Lansing,
and as a director and officer of Federal Nom Loan
-" of Indianapolis, Indianapolis, Indiana.
.ames Bentley, for permission to serve at the
same time as
ladil'ectar and officer of National Bank of Toledo, Toledo, Ohio,
"a director of The Cormaerce Guardian Bank,
Toledo, Ohio.
Lir. 0
as -re°.rge R. Ford, for permission to serve at the same
time
,D1114 director and officer of
National Bank of Toledo, Toledo,
alld°, as a director of The Toledo ?rust
Company, Toledo, Ohio,
lios"a director and officer of The Rossford :3avings
Bank,
3ford, Ohio.
:
• aP thh
as
'Allier, for permission to serve at the same time
01110 uirector and
officer pf National Bank of Toledo, Toledo,
Ohio
'a.Ild as a director of The Toledo Trust Company, Toledo,
G
L. Mather, for permission to serve at the same time
clir; director
of National TIPink of Toledo, Toledo, Ohio, as a
dtract°r of The Toledo Trust Company, Toledo, Ohio, and as a
etnl,
-- and officer of The Morris Plan Bank, Toledo,
Ohio.
Approved.
Letters
1)/),
,07a,
to applicants for uermits under the Clayton
Act, advising
c)f their
auulications as follows:
aa a.
-Jr Bowen,
for permission to serve at the same time
kits1,1rector of The First
National Bank of jluefield,
NI4t;e1d, Viest Viri,inia, and as a director
of McDowell
NlItional Bank in Welch, ;;elch, West Virginia.
- 850
1
6120/34
-19Xoseph H. Bowen, for permission to serve at the same time
43 a director of The First National Bank of Bluefield, Bluefield, West Virginia, and as a director of McDowell County
National
Bank in Welch, Welch, West Virginia.
14r. Edwin Mann, for permission to serve at the same time as
Eft director
and officer of The First National Bank of Blue!
laid, Bluefield, West Virginia, and as a director of MaDow4-1-1 County National Bank in Welch,
Welch, West Virginia.
Approved.
There were then presented the following applications for changes
11461tQck of Federal reserve banks:
It
icatioas for ADDITIONALStock:
?it.,
;u4tional Bank in Painesville,
'41116811111e, Ohio
Shares
75
eEltri(It tio. 5.
eh:!!Leteial National Bank of Spartanburg,
S4-`4'can.burg, South Carolina
100
latriet No, 9.
41.8
nbia National Bank of Hutchinson,
118°11, Minnesota
36
I)
L
75
100
36
1/
b-il
'at National
elati
Bank of Delhi,
Louisiana
33
Total
33
244
Approved.
Thereupon the meeting adjourned.
Secretary.
Govern()
@FedFRASER