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1425 A meeting of the Executive Committee of the Federal Reserve 11°41 was held in Washington on Thursday, June 20, 19350 at 11:30 a. in. PRESENT: Mr. Mr. Mr. Mr. Eccles, Governor Miller James Szymczak Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary The Committee acted upon the following matters: Telegrams dated June 19, 1935, from Messrs. Austin and Wood, 44441a of the Federal Reserve Banks of Philadelphia and St. Louis, 4' and June 20 from Messrs. McAdams and Sargent, Secretaries qtlie ?ecierel Reserve Banks of Kansas City and San Francisco, respectively, ail advising that, at meetings of the boards of directors on ttle dates stated, no changes were made in the banks' existing schedules qlltee of discount and purchase. Without objection, noted with approval. o tlenic)randum dated June 130 1955, from Mr. Wyatt, General Counsel, urvi4 ' - 11g the appointment of Mrs. Winnie T. DeCosta as a stenographer the g-. division, with salary at the rate of $1,560 per annum, etiva -a8 of the date upon which she enters upon the performance of - after having passed a satisfactory physical examination. Approved. 44„ Letter -440.11 to the board of directors of "The Home State Bank of '4 2 Laurence, Michigan, stating that, subject to the conditions 4, 4erite, kit& g III the letter, the Board approves the bank's application for 4-43 " the Federal Reserve System and for the appropriate amount 1426 6/20/4 -2f at°ek in the Federal Reserve Bank of Chicago. Approved. Letter dated June 19, 1935, approved by four members of the to mr. Stevens, Federal Reserve Agent at the Federal Reserve atilk 'Illoago, reading as follows: 19„ "Receipt is acknowledged of Mr. Young's letter of June 7, °, advising that in view of the fact that its capital and 1j are not equaJ to the amount required for the organii' kthu°n of a trust company in that location, the First National fir of Niles, Niles, Michigan, has requested that the Board's ri„P3 be closed with respect to the bank's application for the 'tilt to act as trustee. es,_ "In accordance with such request, the application will be ; etIsidered as having been withdrawn. The papers comprising the ne„ P41 .ic5.tion, however, will be retained as a part of the perma' Official files of the Federal Reserve Board." 84 Approved. Letter to "The Hanover Bank and Trust Company of Wilkes-Barre", —"re, Pennsylvania, reading as follows: Npm,"The Federal Reserve Board has given consideration to your g4'J-cati0n for permission to exercise fiduciary powers, and TIZ8, ,You authority, effective if and when The Hanover Bank and t'omPany of Wilkes-Barre is converted into a national bankeizras sociation and is authorized by the Comptroller of the elleY to commence business as The Hanover National Bank of 100.7,1?arre, to act, when not in contravention of State or 415Q 17,,4-em, as trustee, executor, administrator, registrar of stocks eaternds, guardian of estates, assignee, receiver, committee of Nt;e2_0f lunatics, or in any other fiduciary capacity in which tx4,0- 'tilts, trust companies or other corporations which come tha le°mPetition with national banks are permitted to act under of the State of Pennsylvania, only in the specific trusts hiole- en The Hanover Bank and Trust Company of Viilkes-Barre shall Ilixtink!?4 appointed and shall be acting on the date The Hanover the 6zi. Bank of Wilkes-Barre is authorized by the Comptroller of to : 11 1'enO5r. to commence business, the exercise of all such rights the;subJect to the provisions of the Federal Reserve Act and egUlations of the Federal Reserve Board. 1427 612o,t3s "• After the conversion of The Hanover Bank and Trust Company of erra-Barre into The Hanover National Bank of Wilkes-Barre becomes 1041:.ctive and the Comptroller of the Currency authorizes the national to commence business, you are requested to have the board of direcforB of the National bank adopt a resolution ratifying your application 8J 1 P?rMiSSiOn to exercise trust powers, and a certified copy of the reel,; 1tIon so adopted should be forwarded as soon as possible to the Fedt_61-L Reserve Agent at the Federal Reserve Bank of Philadelphia, who will vrillexd it to the Federal Reserve Board." Approved. 10) 18: Letter to Llr. O'Connor, Comptroller of the Currency, reading as fol- ref, "In accordance with Acting Comptroller of the Currency Awalt's ramendation, the Federal Reserve Board approves a reduction in the n capital stock of the national bank into which 'The Hanover Bank NI' rust Company of Wilkes-Barre', Wilkes-Barre, Pennsylvania, is to be : 80 erted, from 5 1 250,000 to 4150,000, such reduction to be effected as is ",as possible after the conversion takes place. The Board's approval " 13 .en with the understanding that the released capital, together with elat2-0n of the bank's surplus and undivided profits, shall be used in aet:"4t1ng unacceptable assets substantially in accordance with the th4-48 outlined in Mr. Awalt's letter of May 28, 1935, and subject to kaciProvision that the converted institution, after all eliminations tkoadiustments, shall have an unimpaired capital of not less than to c",°°° and an unimpaired surplus of not less than V50000, in order NA : 4TlY with the capital and surplus requirements of the Pennsylvania Jaws affecting State banks having fiduciary powers." 472 Approved. Letter dated June 19, 1935, approved by four members of the Board, )14‘.4e t44. °rge W. Egbert, Superintendent of Banks of the State of New York, Ite 48 follows: stet:This refers to your letter of June 12, 1935, in which you tori81,that the State Banking Board of New York has given serious illtheration to the advisability of ordering a further reduction t} rate of interest paid on time, thrift, and savings deposits Pim ' 4 e State of New York. You request to be advised whether the Reserve Board has under consideration the making of a furbkzatsreduction in the rate of interest on deposits payable by member 11°f the Federal Reserve System. eoriai4The Federal Reserve Board does not at this time have under NkAgeration a further reduction in the maximum rate of interest by member banks on time or savings deposits and, even i such a reduction should appear to be otherwise desirable, not believed that it would be practicable further to reduce :1428 B/20135 -4:the rate at this time because of the competitive situation bemember and nonmember banks of the Federal Reserve System !'th regard to interest rates on deposits. The maximum rate of .,-nterest payable on time and savings deposits prescribed by the 2deral Reserve Board is of course not applicable to nonmember "IS and as a result the member banks are at a serious disadvanige in competing with nonmember banks in this respect. It Is n view of the Board that this competitive disadvantage should " i be accentuated at this time by reducing the maximum rate of bel rest which member banks may pay on time or savings deposits "the present maximum of 21 percent per annum. or , "As you doubtless know, however, the proposed Banking Act r 4.-L965 now pending in Congress contains provisions under which of interest payable on time and savings deposits by nonit-imber banks whose deposits are insured by the Federal Deposit arsIll'anee Corporation would be limited and, if these provisions soe etlaeted into law and it seems advisable at that time to do 44 'the Federal Aeserve Board will give consideration to the , baestion whether the maximum rate of interest payable by member en time or savings deposits should be changed in the light conditions which may then exist." j Approved. Letter 8krd, to Iras. dated June 19, 19650 approved by four members of the 4rs J. H. P. Reilly, President, Hudson County Group, New Bankers Association, Hoboken, New Jersey, reading as follows: or +.,"Iolaz letter of June 5 advising the Federal Reserve Board unanimous adoption by the Executive Committee of the ressicm County Group, New Jersey Bankers' Association, of a Lit10n petitioningthe Board to fix the maximum rate pay„4', Etbic3 1 °Y member banks on time deposits at 2% from and after July 935, has been brought to the attention of the Board. Vthen t11 ,;,_ pe.i.o'ard a few months ago reduced the maximum rate that may be 4Q, member banks on time deposits to 20 per annum it gave thoe'41 consideration to all aspects of the matter after a : visr lieh survey of the situation and it has requested me to adY°11 that it does not at this time contemplate any action ic° a further reduction in the maximum rate. However, as YoLirlt redu—'„ °1c, a large number of banks throughout the country have th —ed the rates of interest which they pay to amounts below v-Illonlaximum fixed by the Board and it is entirely in their pro0 take such action as they see fit." Approved. 1429 6/zo/35 -5Letter dated June 19, 1935, approved by four members of the Beare '4) to Mr. Ben G. Binns, President, Union National Bank of Donora, Dotior, Pennsylvania, reading as follows: "This refers to your letter of June 15, 197,5, regarding the estion whether the making of a loan to the owner of a certain RePosit in your bank would involve a violation of the Federal °serve Board's Regulation Q. a You refer to the deposit in question as a 'savings account' blnici1. also refer to the 'notice for withdrawal' of such deposit, oF since you do not indicate whether or not it is the practice d Your bank to require notice of intended withdrawal of savings Pc/sits, your attention is invited particularly to the distinc4 t1.1°11 between a 'savings deposit' as defined in Section V(a) of c4e2legulation, and 'time deposits' as defined in Section III(a) y 'ne Regulation. A copy of the Regulation is inclosed for °lir convenience. e, "The provisions of Section IV of the Regulation are appliglble to the payment of time deposits and footnote 7 should be tbven consideration in connection with the making of a loan to ti;c owner of a time deposit. The provisions of Section VI of 44 Regulation are applicable to the payment of a savings deposit te,!, if it is the practice of your bank to require notice of inbe'4ed withdrawal as provided in that section, footnote 10 should of considered In connection with the making of a loan to the owner It savings deposit. 40t. "However, if it is not the practice of your bank to require of 1,:ee of intended withdrawal of savings deposits, the provisions of' -ootnote 10 would not be applicable, and there is no provision 8 11" or of the Board's Regulation which forbids the making of can to the owner of a savings deposit. re,:On the other hand, if it is the practice of your bank to clia411:e notice of intended withdrawal of savings deposits, the denn°n whether a loan by such bank to the owner of a savings ore:,!-Lt constitutes a violation of any requirement of Section VI tat ' Te Regulation depends upon whether the loan is made in good VI t",Or for the purpose of evading the requirements of Section general rule can be prescribed to cover all cases and ease should be determined upon the basis of its own particu14r , tra 't6Lcts. The Board feels that the question whether any such tiZaetion should be regarded as a payment of a deposit in violadet :cf the requirements of the Regulation is a matter to be by a member bank in the exercise of its best judgment the light 4ee., of the provisions of the law and of the Board's thic,-a4ion. In view of your specific request with regard to " Particular case, however, it may be stated that, although r j 1430 6/20/35 —6— "the facts as submitted are not sufficiently complete to admit °f a categorical answer, they would seem to indicate that the ing of the loan in question would constitute a violation of , ection VI of the Regulation, if it is the practice of your p4nk to require notice of intended withdrawal of savings de— Posits• of "However, as indicated above, if it is not the practice d Your bank to require notice of intended withdrawal of savings te l.P"its, there is no 'provision of law or of the Board's Regula— °11 which would prevent your paying such a deposit or making a 44)an to the owner of such a deposit." r Approved. Letter dated June 19, 19350 approved by four members of the 44ra 11,111k t0 Tilr. Austin, Federal Reserve Agent at the Federal Reserve 4 Philadelphia, reading as follows: th "This refers to your letter dated May 24, 1935, regarding ati !Proper interpretation of the definitions in Regulations D Q of the term 'time deposit, open account'. wh You state that a member bank has requested advice as to a new agreement must be executed by the depositor and the Dank aceach time an additional deposit is made in such an whe i°11nt, or whether the execution of a continuing contract q11, ell by its terms provides for the deposit of funds on subse— 'IA dates will constitute compliance with the regulations. de The Federal Reserve Board is of the opinion that time tol .,open accounts may consist of deposits made from time £0 under a written contract entered into by the bank with the the dePositor at the time the first deposit is made provided Q0 4dePosit is otherwise in accordance with the definitions ed in the regulations. den "You also state that you have been asked whether time on'Tit, open account contracts may be embodied in a pass book tillaw"ch space would be provided for the entering of deposits to pthdrawals, such pass book to be marked in such manner as ptia lstinguish it from savings deposit and checking account exe 41.°°ks, 3 and the agreement contained therein to be formally thet'ed by the depositor and an authorized representative of nk Without expressing 013 .at the time the account is opened. 0.t.t1,.inion as to whether a deposit evidenced by a pass book Eieco"e kind described above would be a 'time deposit, open D 41 " 1 the Federal Reserve Board believes that such a de— would be a 'time deposit', provided that the contract 6/20/35 _7" embodied in the pass book states that neither the whole nor V Part of any deposit made under such contract may be withdrawn, by check or otherwise, prior to the date of maturity, lwhich shall be not less than 60 days after the date of the .,leposit, or on written notice which must be given by the depositor a certain specified number of days in advance, in 110 case less than 30 days." Approved. Letter to !fr. George Willett, Belden & Company, New York, VIsk, reading as follows: th "This is in answer to your letter of June 5, addressed to : 4 1 Securities and Exchange Commission, which has been referred ''‘o the Federal Reserve Board for reply. el "A combination of transactions such as you describe -- in-'fle; the purchase of 100 shares of the preferred stock of a certain clirrlilr and the short sale of a certain number of shares of the corntia, Stock of the same company -- would require (1) the amount of gin required by section 3(a) of Regulation T (of which a copy ' c'! enclosed) on the long position and (2) the amount of 'the margin -.----.22„-rilz t°n required' by the broker on the short position, as proby section 3(f)(3) of Regulation T. For a transaction on the th Nevi York Stock Exchange, we should be inclined to assume that margin 'customarily required' by the broker on the short posi' pr ll would be that required on short Positions in general by the thlsent rules of the Exchange -- but as to the exact amount of 2 r Cited equirement and its applicability to the particular cases you, I suggest that you make inquiry directly of the New York Stock Exchange." t by Approved. Letter dated June 19, 1935, approved by four members of the ?4) 641, tm, L ° Fletcher, Acting Federal Reserve Agent at the Federal nrire "k of Cleveland, reading as follows: 196 "Receipt is acknowledged of Mr. Evans' letter of June 4, ! 4_j requesting advice as to whether capital debentures sold to' Q4 re Reconstruction Finance Corporation may be considered as in determining whether a State member bank has the capi' tee. Ii4jequired by law for the establishment of a branch beyond the t8 of the city in which it is located. 1432 /20135 -8"As stated by Mr. Evans, the approval of the Comptroller of the Currency for the establishment of such a branch by a State member bank is required under the law. The Board has heretofore received an application from a State member bank for permission to I tablish branche l e s where itd was necessary to include capital sold to the Reconstruction Finance Corporation in deter' 44, . 111i4g that the bank had the aggregate minimum capital required for ; .T establishment of branches under the applicable provisions of I:4e Federal law. In that case, the Board recommended to the CompTAler of the Currency that such debentu res be included in deterthat the bank had the required capital and the Comptroller Pproved the establishment of the branches. The Board has not thented Mr. Evans' inquiry to the Comptroller, but, in view of w Position which his office has taken in the previous case, it 130,11_,1d seem clear that when application is made by The Lorain Street : b 14, Cleveland, Ohio, for permission to establish, as a member 4711k, the branch referred to by Mr. Evans the Comptroller would ;Zclude the capital debentures that have been sold to the ReconreructIon Finance Corporation in determining whether it has the quired capital for the establishment of such branch. " V Approved. Letter dated June 19, 1935, approved by four members of the 451' to Mr. O'Connor, Comptroller of the Currency, reading as follows: chi "The Federal Reserve Agent at the Federal Reserve Bank of ' se eago has forwarded to the Board a letter from an anonymous ofrer indicatine that a certain bank, acting as a broker, is to sell to banks time certificates of deposit issued er,1 by :11g th,,,; ' . 4er banks and is representing in connection with such offer eh:' the deposits evidenced by such certificates are insured by ' Federal Deposit Insurance Corporation. wr„4 "The Board understands that under date of May 27, 1935, you As-'e.a letter to Mr. H. C. Hausman, of the Illinois Bankers e02°elation, stating that in your opinion national banks have in law to purchase time certificates of deposits eolcumstances similar to those outlined in the letter of tation referred to above. e, It will be appreciated if you will furnish the Board with dier;TY of your letter to Mr. Hausman and, in doing so, will ine00T'e whether there is any objection to the Board's forwarding --es of such letter to the Federal Reserve Agents." Approved. Letter dated June 19, 1935, approved by four members of the 1433 6/2e/35 -9441id) for the signature of the Fiscal Agent, to the governors of 11 Federal reserve banks, except Richmond, reading as follows: "With my letter of December 29, 1934 (X-9072), there was your bank a copy of the resolution adopted by the Federal Board levying an assessment upon the various Federal rebanks covering the estimated expenses and salaries of the members and employees of the Board for the first half of 1935, 61134 approximately :J,0000000 to be applied to the cost of the RurChase of a site and the erection of a building for the Federal Reserve Board. On January 19, 1935, you were requested to credit 0° , 44 of the building fund assessment to the Federal Reserve Bank 4 t Richmond for the account of the Federal Reserve Board - Build- ent to ! Re -Lne ACCoUnt. 8 "The Board has decided to transfer to the Federal Reserve balk of Richmond on June 25, 1935, the uncalled portion of the , 1ding fund assessment, and you are requested, therefore, to tedlt the Richmond bank on June 25, 1935, in your daily statement 24„credits through the Gold Settlement Fund, with the remaining aw . of the building fund assessment, for account of the Federal seserve Board - Building Account. Please advise the Federal Reerve Bank of Richmond by wire on that date of the purpose and 4mouat of the credit." Approved, together with a letter to Governor Seay of the Federal Reserve Bank of Richmond, reading as follows: "With my letter of December 29, 1964 (X-9072), there was nt to your bank a copy of the resolution adopted by the Federal ' as'serye Board levying an assessment upon the various Federal rebanks covering the estimated expenses and salaries of the 4flrrs and employees of the Board for the first half of 1935, aPproximately ;1,000,000 to be applied to the cost of the Re-4ell'Ise of a site and the erection of a building for the Federal EiPrve Board, On January 19, 1935, you were requested to credit 1111/ :°f the building fund assessment to the Federal Reserve Board 'lding Account. 8a "The Board has decided to transfer to the Federal Reserve of Richmond on June 25, 1935, the uncalled portion of the th 1-ding fund assessment, and you are requested, therefore, on ttle'date, to credit the remaining 20% of the building fund assesst to the Federal Reserve Board - Building Account. A copy of e Board's letter to the other Federal reserve banks is attached." t etter dated June 19, 1935, approved by four members of the 1434_ 6/20/35 -108°41"c1) to Mr. Peyton, Chairman of the Federal Reserve Bank of Minh —eaPelis, reading as follows: , "This will acknowledge receipt of your letter of June 11, ,963, inclosing a copy of the report of Mr. W. E. Peterson, stant Cashier of your bank, covering his bank visits during the week beginning May 19, 1955. Your letter and its inclosure will be brought to the attention of the members of the Board. "With regard to your comment on the rate of interest paid °I1 deposits in Postal savings depositories, attention is invited to section 541 of H. R. 7617 in the form in which it passed the 2143e of Representatives, which provides that 'Notwithstanding any other provision of law, no interest shall be paid on any deposit in any postal savings depository office at a rate in ess of that which may lawfully be Paid on savings deposits tier regulations prescribed by the Federal Reserve Board purnt to the Federal Reserve Act for member banks of the Federal Reserve System located in or nearest to the place where such qepository office is situated.' re "Consideration will be given to the question whether the ported activities of certain New York banks in offering free ,'°dY of bonds in proportion to balances carried by correspondent eblaltt sn's is in violation of law or the Board's regulation with reilliQet to the payment of interest on deposits and you will be adfurther withrespect to this matter. In accordance with belikr suggestion, an excerpt from your letter on this subject is 'ng transmitted to the Comptroller of the Currency for his in°rmation.n Z r Approved. kirlh Letter to Governor Geery of the Federal Reserve Bank of sgefillr.1 reading as follows: your letter of June 10 with regard to th"This has reference to yo e procedure to be followed in handling work relief checks. It se, r48 our understanding that the Treasury does not intend to bre. -4 men to the Federal Reserve banks to take charge of any of Z?.11 of this work. The Treasury is interested in having one °wn men at each Federal Reserve bank to serve in an advt2 Y capacity and to be available to give advice with respect to r... !ails in connection with the examination of the checks ' whir, clef:" is to be made by the Federal Eeserve banks. While no tlet141te program has been worked out, it is quite possible that el ' the work of cashing the work relief checks is well under 1435 6/2Mis -11cq the Treasury Department may decide to withdraw its men from 'he Federal Reserve banks and to designate employes of the banks zo represent the Treasury of the United States. n "With regard to obtaining such additional help as may be wnssary to handle the work relief checks, it is a part of the e program to employ people on the relief rolls wherever P araoticable. We understand, however, that there will not be 1,,, n3rt ,hillg in the Treasury requirements which will necessitate a 'ueral Reserve bank's employing anyone whom it does not regard Ets competent to handle the work. If persons referred to sour bank by the work relief agencies do not have the qualification 4 required by your bank to handle the work, I am sure there !Jai be no objection on the part of the Treasury to your obtain" necessary help from such other sources as seem best in the yc7cumstances, always with the understanding, of course, that zeUr .s. bank makes a conscientious effort to carry out the employt2."' Program set forth by the Treasury, insofar as it is consisat with the proper operation of your transit department. "A copy of the President's proclamation of May 6 is inclosed." Approved. Ileeet„. Letter to Mr. Hoxton, Federal Reserve Agent at the Federal we Etialk of Richmond, reading as follows: po ."This refers to your letter of June 7, 1935, regarding the ila ble violation of section 22(g) of the Federal Reserve Act rirIrclving the Peoples Bank of Montross, Montross, Virginia, and . Charles E. Stuart, Vice President of that institution. let4 "In view of the additional information submitted with your the Board feels that it will not be necessary at this : st to report the matter to the Attorney General of the United ! 8 and, accordingly, no report need be made by you to the "Q. United States Attorney." Approved. Let ter to Mr. Walsh, Federal Reserve Agent at the Federal Reef Dallas, reading as follows: pots "This refers to your letter of May 31, 1935, regarding invs.i.ble violations of section 22(g) of the Federal Reserve Act LI4V-ng the Wellington State Bank, Wellington, Texas, and Mr. A. ' l 4, and Mr. J. C. Terry, Vice President and Cashier, respectivize -'Y, of that institution. You ask to be advised of the Board's 1436 6/20/35 -12"views as to whether or not such possible violations should be reported to the United States Attorney. "It is noted that in the case of Mr. Bell, the possible 7iclaticn arose by virtue of his placing his cotton loan in the amount of i,368.83 on the Commodity Credit Corporation contract in the bank, and that in the case of Mr. Terry, the pos8ible violation arose through incurring an overdraft in excess (If 4100 which was carried by the bank from mid-May to June, 1934. In this connection it is noted that the indebtedness of Mr. Terry !" been paid, but it is not clear whether Mr. Bell has eliminated rile indebtedness. T "In view of the representations made by Messrs. Bell and errY in their letters to you and other information submitted in Y°1ar letter and in the report of examination of the subject bank of March 30, 1935, the Board feels that it is probable that khe apparent violations of section 22(g) were not committed 01,1°wIngly or as a result of willful disregard of the provisions ' 1 the law. Therefore, in view of the provisions of the Board's .4:etter 1 of February 13, 1935 (X-9124), please suggest to Mr. Bell he take immediate steps to eliminate his indebtedness to hank, if he has not already done so. If Mr. Bell eliminates hi time the Board feels that it8 indebtedness within a reasonable not be necessary for you to report this possible violation the local United States Attorney. Since it appears that the ' Ildebtedness of Mr. Terry has been paid you need not report his P°1381ble violation to the local United States Attorney." Approved. Letter to Mr. Curtiss, Federal Reserve Agent at the Federal B rte ert'. 10 40ank of Boston, reading as follows: "Consideration has been given to Mr. Osgood's letter of 24, 1935 and inclosures relating to the application of Mr. Ae, 8. Bissell under the provisions of section 32 of the Banking of 1933 for a permit to be at the same time a director of th ' ite First National Bank, Suffield, Connecticut, and a dealer c securities under the name of C. S. Bissell & Co. at Hartford, ell/lecticut. 40a "It appeared from the previous correspondence that, in iticu to a small amount of commission business, Mr. Bissell te. !doing a 'trading business between brokers', although the fling of this phrase was not clear. It now appears from Mr. trs ell's letter of May 17, 1934 that he has 'discontinued all ng t and that from now on he will be engaged only in taking 1437 6/20/55 11 care of his personal and family affairs. Mr. Osgood concludes from this statement that Mr. Bissell will not be in any active 12usiness and that section 32 therefore is no longer applicable Lo him, and the Board sees no reason to differ with this conclusion.n Approved. Letter to Mr. Curtiss, Federal Reserve Agent at the Federal 4":/erve Bank of Boston, reading as follows: "Reference is made to your letter of June 12, 1935, with inci_osure, accordance with the third paragraph submitting, in ,. the Board's letter of January 31, 1935, to you, the request of 11.' Mr. John E. Weeks, Middlebury, Vermont, to amend his Clayton ° , et application to serve as director of Brandon National Bank, ir:'randon, Vermont, as director and officer of Addison County ?ust Company, Middlebury, Vermont, and as director of The _4”ional Bank of Middlebury, Middlebury, Vermont, by excluding wlerefrom The National Bank of Middlebury. "The Board has approved the application of Mr. Weeks as amended and there are inclosed the original and copies of a permit authorizing his services as director of Brandon National calik, Brandon, Vermont, and as director and officer of Addison i°1111tY Trust Comnany, Middlebury, Vermont, for the period endJanuary 14, 1936, for transmittal by you to the applicant a and the banks involved; there is also inclosed a copy for your riles. i, "In view of the Board's letter of April 9, 1934, (X-7856), is assumed that you are satisfied that Mr. Weeks is not now i!rving any organization other than those which he listed in 'em 12 of F.R.B. Form 94 in his application dated December 12, 233; but it will be appreciated if you will advise the Board this matter in order that its files may be complete. however, ever, if Mr. Weeks is serving any organization other than those listed in that application, please advise the Board ding the matter and hold the permit pending further advice rom the Board. "When the permit is sent to Mr. Weeks and copies thereof to the banks involved, please advise them that the permit has bee n th issued so as to expire at the close of January 14, 1956, as roere is now pending before the Congress proposed legislation r the purpose of clarifying and otherwise amending the proviinterlocking bank directorof -,es." the Clayton Act relating to Approved. 1438 6/20/35 Letter to Mr. Wood, Federal Reserve Agent at the Federal ReServe Bank of St. Louis, reading as follows: "Reference is made to the applications of Mr. R. Wallace Karraker, Jonesboro, Illinois, and Mr. John B. Jackson, Anna, Tllinois, for permission under the provisions of the Clayton Act serve at the same time as directors and/or officers of The ,irst National Bank of Jonesboro, Jonesboro, The Anna National cank, Anna, and First State Bank, Dongole, all of Illinois. "On the basis of the information now before the Board it does not appear that a permit would be granted with respect to the applicants? services to the Jonesboro and Anna banks in view ; ) ,I the Board's policy as set forth in its letter of January 91 9' ".5, (X-9082). However, it is possiblP that such service will .1 )t be Prohibited under the provisions of the proposed legislalon now pending before the Congress. "In the circumstances, the Board wishes to advise you con,. ' ldentially that it will defer action with respect to the apPlications of Messrs. Karraker and Jackson until it can be definitely ascertained whether the Proposed legislation will be !acted at this session. If you consider it necessary or desir,.uley You may inform them that their applications are receiving nsideration and they will be advised in due course of the action taken." Approved. Thereupon the meeting adjourned. Governor.
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