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1444 A meeting of the Federal Reserve Board was held in Washington °II Monday, June 24, 1935, at 11:30 a. m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Governor Hamlin Miller James Szymczak Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary There was submitted to the members of the Board the page 13r°°t of the Ust Annual Report of the Federal Reserve Board covering (113e4:tions for the year 1934. 1144 fUrnished Copies of the report in page proof had to all members of the Board and in addition a copy was ell'euleted among the members of the Board, with a letter of transmit14°- to the Speaker of the House of Representatives reading as follows: L. "Pursuant to the requirements of section 10 of the Federal serve Act, I have the honor to submit the Twenty-first Annual 4 coPart, prepared by direction of the Federal Reserve Board, 7ering operations during the calendar year 1934." ti° letter was initialed by all of the members of the Board (including the eh Etil'man and the Comptroller of the Currency), with the exception ot Thomas who was absent from the city. The report and letter of transmittal were approved, with the understanding that the report would be printed as soon as possible following which it would be submitted to the Speaker of the House of Representatives and the President of the Senate and released to the press under date of June 24, 1935. There were then presented memoranda dated June 19, 20 and 21, 1445 6/24/35 -21935 ''-rom the Division of Examinations stating that the Federal reServ 'agents at the respective Federal reserve banks had recommended, 011 41, vo.e basis of thorough examinations, that, in accordance with the Prcisions of Section 1213(e) of the Federal Reserve Act, the Federal 48erve Board certify to the Federal Deposit Insurance Corporation that the assets of each of the following State member banks are ade(1114te to enable the bank to meet all liabilities to depositors and °thercreditors as shown by the books of the bank. The memoranda also at" 'ed that the reports of examination of the banks listed had been 4.41'1% reviewed in the Division; that on the basis of such review %et) ivision concurs in the recommendations of the Federal reserve 4getts; that in the opinion of the Division there is no doubt that the ° clition of each of the banks listed is such as to warrant an affirmatiNre certification; and that it is recommended that, upon receipt of a l'eqllest from the Federal Deposit Insurance Corporation, the Board cer11Pipil the basis of a thorough examination, that the assets of klehof the banks are adequate to enable it to meet all of its liabil1%8 to depositors and other creditors as shown by the books of the lakk: Naze oollther4 A Location DISTRICT NUMBER 11 (DALLAS) % Co rizona Bank and Trust Tucson, Arizona kirtdehifl i ,(11 Willcox Willcox, Arizona & Trust Company Minden, Louisiana Date of Examination 4/035 4/11/35 4/27/35 1446 V24/35 Name of Bank Location DISTRICT .NUMBER 11 Baa Celltinental-American Bank and t Company Shreveport, Louisiana Na mbres Valley Bank Deming, New Mexico !eParland Brothers' Bank Logan, New Mexico 'ecurity State Bank and. Trust e°mPany of Beaumont Beaumont, Texas Site Bank & Trust Company Beeville, Texas First State Bank of Bremond Bremond, Texas i:(A'nfield State Bank Brownfield, Texas Irzt State Bank & Trust Company of Bryan, Texas Bryan & Merchants State Bank Carrollton, Texas First State Bank Celina, Texas e Farmers State Bank of Cl arendon Clarendon, Texas c;1 : 1lers State Bank Clifton, Texas Dalhart, Texas State Bank of Dalhart „,-1-las Bank Dallas, Texas & Trust Company qle Del Rio Bank and Trust Del Rio, Texas li?-irst State Bank Dodsonville, Texas StE.te Bank East Bernard, Texas pmen State Eden, Texas arze_ Bank Po 4.s. and literchants ,State Bank Ferris, Texas Tue p• State Bank of Forney Forne:;, Texas irst State Bank of c,11,jranklin, Texas Franklin, Texas .citity Bank & Trust Company Gatesville, Texas '4ens State Bank &Trust Cit c)rnPany Goose Creek, Texas ler 's C ee State Bank of 1k r1 0, nville, Texas Greenville, Texas 412,, t°n BanL and Trust Company Hamilton, Texas /;'lle Bank and Trust Company Huntsville, Texas State Iola, Texas Bank • 1-1'St State Bank of The-; rkland, Texas Kirkland, Texas Pali:11'2't State Bank Kosse, Texas P11,;e2's ;, Ladonia, Texas 'Ierchants State Bank S,tate Bank of Leakey OO Leakey, Texas e °tate Bank Llano, Texas b'x'zt tate Loraine, Texas Bank of Loraine elNr41, State Bank of Madison.ladisonville, Texas Texas •Trus 1 Date of Examination _CPALLAS) 2/5/35 4/13/35 3/14/35 12/18/34 3/23/35 3/23/35 12/12/34 3/26/35 12/15/34 12/18/34 12/3/34 3/19/35 3/23/35 2/23/35 12/15/34 3/19/55 12/10/34 12/15/34 3/30/35 12/1/34 4/3/35 12/3/34 3/16/35 12/4/34 3/16/35 12/11/34 4/6/35 12/1/34 12/1/34 3/27/35 12/19/34 12/1/34 3/30/35 4/8/35 1447 6/24/38 i) Name of_ Bank Location DISTRICT NUMBER 11 (DALLAS) ' 1. 3TRICT First State Bank of 7ataZ Matador, ?irst State Mathis, Trieirs's CitY State Bank of ',Tathis Bank and Trust Company Gi McAllen, Texas z.ranty Bond Co State Bank Mount Pleasant, Texas larnercial Sta te Bank Nacogdoches, Texas 8QeellritY State Bank Pearsall, Texas '-',,°01.1rity State Bank Trust Co, Rails, Texas qtizens State Bank of Richardson, Texas Richardson, Texas 1-1'st State Bank Robert Lee, Texas he Roscoe State Bank Roscoe, Texas r71,01's ez Merchants State Bank & p 11'11St Company of Rusk, Texas Rusk, Texas e.%;ers Lierchants Stcte p l arik of Shamrock, Texas Shamrock arirl,ers State :lark of s.l'hiro, Texas Shiro, Texas cl°'sbee State Bank Silsbee, Texas ?,1111nercial State Sinton, Texas Bank 11,11"'t State Bank Spearman, Texas Ti;%11clale State Bank Thorndale, Texas 'armers a_nd w State Merchants Bank Turkey, Texas IlellR'%itigt(mi State Bank ,:ellington, Texas -rp'eeurity Bank and 4Nst Wharton, Texas ton Company Bank and Trust Wharton, Texas Co, °Bte-rrners 'fferchants tate Bank of Wylie, Texas Wylie Date of Examination 12/8/34 3/26/55 12/12/34 3/23/35 3/16/35 12/4/34 12/11/54 4/1/35 3/28/35 4/1/55 12/8/34 3/16/55 4/2/35 12/15/34 12/8/54 12/6/34 12/8/34 2/11/55 3/20/35 12/11/54 3/20/35 12/17/34 e DISTRICT NUMBER 6 (IITLAUTA) 1,11..e Bank & Aliceville, Alabama Trust Company s81.rmingham Trust and ngs Birmingham, Alabama 14.: 111 e°PlesCompany Clanton, Alabama Savings Bank Col °f Commerce Clayton, Alabama 1,111biana Columbiana, Alabama DothParker Savings Bank Bank and Trust Company Cullman, Alabama 8ank Dothan, Alabama Qq4lIts and Trust Company Farmers Bank of 7 Perle County Eutaw, Alabama Icil?2B tlz. anking Faunsdale, Alabama Company I enc Bank of Georgiana Georgiana, Alabama 4/24/35 1/8/35 10/15/34 2/18/35 10/17/34 , 2/20/55 10/10/54 12/17/34 15/35 10/6/54 6/24/35 Date of Examination Location DISTRICT NUMBER 6 (ATLANTA) 1144'ion County Banking Company 3/4/35 Guin, Alabama Bank 71ari0n Junction State , Marion Junction, Alabam a. /7/35 ;1,1e(Incorporated) Citizens 2/19/55 Alabama Oneonta, Bank ,!le Bank of Pine Apple 10/8/34 Pine Apple, Alabama PeoPle-, Bank Ek Trust company V4/35 Selma, Alabama Pianters Bank & Trust Company 2/5/35 Thomaston, Alabama Stnte Bank 3/4/35 Winfield, Alabama of York V7/35 York, Alabama ulrl'I' 4ens State Bank 11/19/34 arianna, Florida Trust Company 12/3/34 St. Petersburg, FInrida pE:litra1 Farmers Trust Co. West Palm Beach, Florida 12/11/34 1da Dank & Trust Co. of t 'lest Palm West Palm Beach, Florida 12/8/34 Beach ,4,111k of 11/24/34 Adairsville, Georgia Adairsville G tC°mPany of Georgia 3/30/35 Atlanta, Georgia Railroad Bank er ,111e-mgia Irust 3/25/35 Augusta, Georgia Company Citizens Bank and Trust /4 e°mPany 3/13/35 Bainbridge, Georgia 4:,,Blackshear Bank 6/20/35 Blackshear, Georgia 3rUn5wic1 Bank and !LI'llst Company 3/18/35 Brunswick, Georgia Of 11/26/34 Canton Georgia Canton, 0 iLe B of Cochran 11/14/34 Cochran, Georgia Ti ! l bils Bank and Trust Comoany 11/20/34 Columbus, Georgia chants and 'leehanics 411,13.-- of 11/21/34 Columbus, Georgia Columbus, Georgia t 1, of 3/11/35 Dawson Dawson, Georgia of 2/18/65 Eastman, Georgia Eastman 4and BanktIg Company 1/28/35 Lawrenceville, Georgia Of 11/10/34 .1ilten Millen, Georgia 0)%1\1 Bank of ''elham 1/31/35 Pelham, Georgia z;41k-ltizons State Bank 10/20/34 Reynolds, Georgia etti Of 3/12/35 Georgia Sasser Sasser, n The uan4 & Trust Company 5/11/35 Savannah, Georgia o tlk of 5/8/35 Soperton, Gcorgia Soperton T1An1.e ellta'al Bank 1 1/15/34 S7;ainsboro, Georgia &vs, of Tifton 12/17/34 Tifton, Georgia tarlit- an By 2/23/,35 Nev; Orleans, Louisiana and Trust Company Ttle Tc4: 1/31/35 Slidell, Louisiana Slidell Crystal Springs, Pxchane Bank 2 18/35 Mississippi 1.1P..ap of Bank e 1449 6/24,5 . . 114.allf Bank —6— Location DISTRICT NUMBER 6 CATLANTA1 eT: lle Bank of Forest Itizens Bank & Trust Company n'sritala Trust and Banking Company " k of Hartsville Date of Examination Forest, Mississippi Carthage, Tennessee Chattanooga, Tennessee Hartsville, Tennessee ' . DISTRICT NUMBER 5 (RICHMOND 4erican Security and Washington, District Trust Company of Columbia e Washington r, " „„ Washington, District Loan and Trust rrn vparky. via of Columbia 41e Baltimore Commercial Bank Baltimore, Maryland C4lvert Bank Baltimore, Maryland ;h.e ?idelity Trust Company Baltimor3, Maryland vctrYlahd Trust Baltimore, Maryland Company ct Trust Company of Maryland Baltimore, Maryland CT°4tizeztial and Farmers Bank Ellicott City, Maryland /4 ci ?orest Hill State Bank Forest Hill, Maryland iNerstow.n. Trust Company Hagerstown, Maryland 44riners and Salisbury, Maryland Merchants Bank rirri,61:ican Trust Company Charlotte, North Carolina ittlzens Bank Concord, North Carolina and Trust Company 8411 'of Edenton Edenton, North Carolina Of Elizabethtown, North Elizabethtown Carolina ei.t.t,..izens Bank Marshall, North Carolina 1Bank & Trust Company Tryon, North Carolina .44 ()f North Washington, Washington Carolina OP1e Wilmington, North Savings Bank and ThetTlst Company Carolina :11raington Savings ez Wilmington, North 041:u%st Carolina Company (?,J,Lina S avings Bank of Charleston, South 1,40,,Qe.rieston Carolina 134xxk Of Hartsville Hartsville, South Carolina 1111 ex's Exchancie Abingdon, Virginia Bank, Incorporated 411 8ank and Trust Company eljt Amelia Amelia, Virginia Th l2e4s Bank and Virginia Blackstone, Company Trust (;!,eQPles Bank & Trust 111 .i.111)41IY r Chase City, Virginia of Chase City &Is Bank and Trust Farmville, Virginia (11111)4/4Y of Farmville 0 2/19/35 2/9/35 11/3/34 2/11/35 12/21/34 2/4/35 1/28/35 3/14/35 3/6/35 4/15/35 11/30/34 2/11/35 2/12/35 2/14/35 2/12/35 2/25/35 2/18/35 12/26/34 3/19/35 2/25/35 2/20/35 2/18/35 3/11/35 3/13/35 5/9/35 5/6/35 1/26/35 10/6/34 12/26/34 1/14/35 12/26/34 1450 6/24/35 -7Date of Location Examination DISTRICT NUMBER 5 (RICHMOND) 11.11.e Bank of Glade Spring 1A9/35 Glade Soring, Virginia Bank of 1/16/35 Halifax Halifax, Virginia rBank of 11/13/34 Virginia Kenbridge, Lunenburg ; I" Bank of La Crosse 11/19/34 LaCrosse, Virginia ' al ' ll'ers and Merchants Bank of 11/22/34 Lawrenceville, Virginia *us Lawrenceville Lynchburg Trust and 16 Savings Bank 10/29/34 Lynchburg, Virginia '4e17Peoples Bank of Montross, ? ginia, Incorporated 10/15/34 Montross, Virginia e6ersburg Savings and erican Trust Company 1'16/35 Petersburg, Virginia t of Powhatan Virginia 10/13/34 Powhatan, p,kik of C ommerce and Trusts 11/5/34 Richmond, Virginia s'echanies and Merchants Richmond, Virginia Bank 11/7/34 t`i,e-Plant,,,rs Bank and .crust 12/15/34 Richmond, Virginia CompanY Ziee EI:Teololes Bank 11/17/34 of Rural Retreat Rural Retreat, Virginia t-erohants and Farmers 111 'a/1k 10/6/34 Smithfield, Virginia Incor)orated e Citizens Bank, Incorporated, 1,Lc'e South Hill, Virginia 1/8/35 South Hill, Virginia fh7e. Nansemond Partners Bank of 1/14/55 Suffolk, Virginia peljarrners Bank of Clinch 11/21/34 Tazewell, Virginia Valley 1/40, 81.1la Bank and Trust Company 12/3/34 Williamsburg, Virginia 'alak of Winchester 1/14/35 Winchester, Virginia Th-411.1c1 Bank 10/9/34 Berwind, West Virginia 142,14.fal0 Bank 5/1/35 Buffalo, West Virginia Banking he Virginia 10/2/54 West Charleston, and Company Trust etr 4,ealawha Valley Bank Charleston, West Virginia 10/2/34 ee 111..11orier Valley Bank Lewisburg, West Virginia 5/4/35 Peoples Trust Martinsburg, West Company Thenv 11/19/34 Virginia otolt 'Lleer County Bank Virginia 11/24/34 West Parsons, " Valley Bank Petersburg, West The t 11/14/34 Virginia The 41 , , 1!! of Virginia 10/10/34 Rainelle, West Rainelle Tht, t i/e-uks of 11/20/34 Romney, West Virginia Romney e erlit of St. Virginia 4/29/35 Albans, West St. Albans ttti,‘".stints County Bank Marys, West Virginia 4/29/35 St. .4 Trust 5/2/35 and Banking Co. Spencer, West Virginia an Merchants Bank of Summersville, West 10/8/34 Virginia !oBaflk 1451 e/24/35 Name of Bank Location DISTRICT NUMBER 9 (MINNEAPOLIS) State S avings Bank of Escanaba, Michigan State Bank of Ewen 'rtle Gladstone State Savings Bank % Commercial Bank of Iron Mountain Commercial Bank of Menomine esealltral S avings Bank z.„_11.1t Savings Bank 84!te Bank of Aurora s'Ae Bank of Belle Plaine ZragIle State Bank —4,..JitY State Bank of Cannon zalls '‘oot River State Bank ell4t(1/1 Stat0 Bank 8.t8.te Bank of Gibbon ?eclirity State Bank of Houston °131es State Bank of Plainview rst State Bank of Rushmore '14ers p Ilank and Merchants State of k'rners andSacred Heart Merchants State N : I erik ,of Springfield kd ve bank of Springfield Ottl CoUnty State Bank -,-er18 State Bank of Westbrook State Bank of Wykoff arik and Trust Company of Cits:"41 co/Ida StL LI.8 Bank & Trust Co. 1Gtie1'Y Trust and Savings Bank 4,1-11, bust and Savings Bank e-1 Bank & Trust Company Ba kta°,3!. 4 V tozernan Bank & Trust Company .1owstone Bank, Columbus, 441,, iAtana 0 t0age Bank and Trust Company State Bank of Denton, 4°11tarla koitam Pto f.,°rk Valley Bank of 411t;!u!rg, Montana toc) growers Bank Date of Examination Escanaba, Michigan Ewen, Michigan Gladstone, Michigan 5/11/35 5/18/55 5A/55 Iron Mountain, Michigan Menominee, Michigan Sault Ste. Marie, Michigan Sault Ste. Marie, Michigan Aurora, Minnesota Belle Plaine, Minnesota Caledonia, Minnesota 1015/54 Cannon Falls, Minnesota Chatfield, Minnesota Clinton, Minnesota Gibbon, Minnesota Houston, Minnesota Plainview, Minnesota Rushmore, Minnesota 2/2/35 12/12/34 3/18/55 12/19/34 2/5/35 12/19/34 5/8/55 Sacred Heart, Minnesota 11/10/34 Springfield, Minnesota Springfield, Minnesota Wadena, Minnesota Westbrook, Minnesota Wykoff, Minnesota 11/14/34 10/29/34 3/4/35 12/1/34 2/4/35 Anaconda, Montana Big Timber, Montana Billings, Montana Bozeman, Montana 12/10/34 1/30/35 2/11/35 1/16/35 Bozeman, Montana Butte, Montana 1/16/35 1/9/35 Columbus, Montana Deer Lodge, Montana 2/4/35 11/28/34 Denton, Montana 1/5/35 Fromberg, Montana Glasgow, Montana 2/1/35 1/2/35 10/6/34 4/29/35 4/23/35 3/12/35 10/31/34 11/17/34 1452 6/24/55 —9— Date of Bank Location Examination Moritaz -----DISTRICT NUMBER 9 (MINNEAPOLIql 41(- bank and Trust Company Great Falls, Montana 11/26/34 and Trust Company Helena, Montana 12/4/34 4u-Llowstone Bank Laurel, Montana 2/6/35 110118t State Bank of Richey, Montana Richey, Montana 8 all 2/19/55 State Bank Ronan, Montana 1 /23/35 !Bank of Terry Terry, Montana 2/16/35 tate Bank of Townsend Townsend, Montana 1/26/35 1et's State Bank Victor, Montana 1/21/35 › 4:1 State Bank of Worden Worden, Montana 2/9/35 t(Q:e Bank of Alcester Alcester, South Dakota 2/2/35 —„ (/f Alena eittz P Alpena, South Dakota 2/9/35 State Bark of Arlington Arlington, South Dakota 12/8/34 Federal reserve agent recommends certification on basis of report of examination as of 6/4/35 which 111t,tec report has not yet been received by Board. °untY Bank Belle Fourche, South Dakota 2/19/35 aelliciel'e state Bank Belvidere, South Dakota 3/21/35 NIT., State Bank of qtrk ' 0, south Dakota Buffalo, South Dakota 2/16/35 e State Bank Burke, South Dakota 2/11/35 , 114r_ Sta.te Bank Faith, South Dakota 2/25/35 c8 State Bank Flandreau, South Dakota 12/3/34 Federal reserve agent recommends certification on basis of report of examination as of 6/1/35 which report has not yet been received by the Board. 4tchants State Bank Freeman, South Dakota 2/5/35 4e 1 S and Merchnts Bank Dakota Huron, South 3/15/35 4ZitY Bank& Trust Company Madison, South Dakota 12/5/54 T;1,t.Y State Bank McIntosh, South Dakota 2/26/35 Oc; ‘JoUnty State Bank Miller, South Dakota 3/16/35 eitietcial Trust and Savings Bank Mitchell, South Dakota 4/9/35 Ilejzell8 Bank and Trust Company 2/27/35 Mobridge, South Dakota arker tion State Bank Newell, South Dakota 2/18/35 8 & Merchants State Dakota Bank Presho, South 3/19/35 Be Butte Valley Bank Sturgis, South Dakota 2/23/35 of Toronto of Toronto, ota Toronto, South Dakota 4/6/35 County Bank Wessington Springs, South Dakota 2/6/35 SIZ8 State Bank Winner, South Dakota 2/14/35 olinty Bank Woonsocket, South Dakota 3/11/35 Yeeville Boyceville, Wisconsin 1/26/35 State Bank of Glenwood Glenwood City, Wisconsin 1/28/35 1453 6/24/35 -10-Date of Examination Location DISTRICT NUMBER 1 (BOSTON) The Union and New Haven Trust Company 4/15/35 New Haven, Connecticut The So uthington Bank and 1,6 Trust Southington, Connecticut 2/27/35 Company rm-me 8rooks Bank and Trust Company 2/25/35 Torrington, Connecticut qla Co lonial Trust Company 3/18/35 Waterbury, Connecticut Waterbury Trust Company 5/4/35 Waterbury, Connecticut 13031..tors Trust Company 5/6/35 Augusta, Maine ipe Merrill Trust Company 5 /20/35 Bangor, Maine 41' a.rbor Banking and Trust .C°111PanY 4/13/35 Bar Harbor, Maine 1110/1 Trust 2/25/35 Maine Ellsworth, Company Ellsworth of Q1 p liltord Trust Company 5/7/35 Guilford, Maine ti'allford Trust 1/21/35 Sanford, Maine Company 110tOnly Trust 4/6/35 Massachusetts ArlinLton, Company ( 41 New :4e 2/16/35 England Trust Company Boston, Massachusetts Colony Trust 10/5/34 Massachusetts Boston, Company 11gr 4..im Trust Company 12/19/34 Boston, Massachusetts 1.;7Ite Street 3/22/35 Massachusetts Boston, Trust Company tlisa%Urlion Trust Company of Boston 12/1/34 Boston, Massachusetts States Trust Company 12/31/34 Boston, Massachusetts 0',4olk C 4/20/35 ounty Trust Company Massachusetts Brookline, ii°1111tY Bank and Trust Company 1/7/35 Cambridge, Massachusetts P411 ' 4rd Trusk,4Cambridge, Massachusetts 10/27/34 Company en Bank and 4/10/35 Everett, Massachusetts Trust company Lturfee Trust Company Fall River.Massachusetts 4/2/35 ql-'411rer Trust Fall River, Massachusetts 1/26/35 Company .‘olleester Safe Deoosit and 4 Trust Gloucester, Massachusetts 2/28/35 Company tiLic/111-tY Trust 1/7/35 Massachusetts Lynn, Company 11111 Bank & 5/25/35 Massachusetts Milton, Company Trust 011 Trust Company 10/22/34 Newton, Massachusetts ckrood Trust Compa Norwood, Massachusetts nyli Et h,„11eY l'rust : 34 1-X91 / Quincy, Massachusetts Comnany a0rt7"ag Trust 3 / 2 Massachusetts Salem, 8/35 Company ST:4!11111e Trust Company Somerville, Massachusetts 3/4/35 Safe Deposit and t Springfield, Massachusetts 3/9/35 Company Trust Company of 40, igfield, Springfield, Massachusetts 5/11/35 Massachusetts 1/26/35 County Trust ComPanY Taunton, Massachusetts "ter Trust Company 5/25/35 Massachusetts Winchester, P' '"e( eSter County Trust Company 4/27/35 Massachusetts Worcester, 0011 caunty o/ilyay Trust Company of 10/29/34 Conway, New Hampshire .1.* of Bank i 1454 -11Date of Location Examination IA DISTRICT NUMBER 1 (BOSTON) 111411'41:4141 Trust Company Providence, Rhode Island 2/2/35 Tras t Company Providence, Rhode Island 1/14/35 The memoranda further recommended that the Secretary or an Assis- tkt s ecl ' etarY of the Board be authorized to execute, upon receipt of an 410, -"'Prlate request from the Federal Deposit Insurance Corporation, a certitle ate to the following effect as to any or all of the banks listed above: Vsuant to the provisions of subdivision (e) of Section 12B of the til"ral Reserve Act, the Federal Reserve Board hereby certifies, upon 14Ltbasis of a thorough examination of each of the State member banks e bl belov., that the assets of each of the banks are adequate to it to meet all of its liabilities to depositors and other 'editors as shown on the books of the bank: (here list State member banks being certified)" The recommendations of the Division of Examinations were unanimously approved. There u Vias also presented a memorandum dated June 21, 1935, from 1181'n of Examinations stating that an affirmative certification to NI 4 ellal DePosit Insurance Corporation on the basis of the most recent 1L or bte examination of the Bank of JemstoLn, Jamestown, New York, as of 4 1934, depends upon whether the .4.1,000,000 of capital debentures ' 1484ecl t0 the t do Reconstruction Finance Corporation or the $300,000 of Class belt ures sold locally and subordinated to the Reconstruction Finance 1)11)o olt cia 011 debentures are to be regarded as part of the capital structure 1?k ' el llities to creditors under the provisions of Section 12B(e) of the 444 Ileserve Act. The memorandum pointed out that in order to pay the It41 : debentUreS the bank must be in a position to meet the demands of °81.tors and other creditors and to retire the caoital debentures 1455 6/24/35 -124111 te the Reconstruction Finance Corporation and that the bank has e Ilet8(:44141 capital of $736,000 if capital debentures sold to the Reconlon Finance Corporation and locally are included in the capital acenh-L ; a net sound capital of t436,000 if the capital debentures sold totheReeonstruction Finance Corporation are included in the capital 4e°11 3 and an impairment of debentures in the amount of $564,000 if Ileitilel" the capital debentures sold to the Reconstruction Finance Corpor°;1°Iltor locally are considered as capital for the purposes of certifica404. The memorandum also stated that the Federal Reserve Agent at the Nleral Reserve Ncl; that 4Pitala Bank of New York had recommended that the bank be certi- the Division of Examinations had proceeded on the basis that notes and debentures sold to the Reconstruction Finance Corpora- ti°11 coltld be considered as capital and not as liabiliti:s to creditors to 1"he mrpose of certification and on that basis concurs in the recomketdatiot of the Federal Reserve Agent; but that the matter is presented tn the ?ederal Reserve Board for determination. The memorandum also stated that in the recommendations previously d -,a^ pltal notes or debentures sold to the Reconstruction Finance eP°1'ati had been included in net sound capital, but that in no case the „,70 41 Unt of net ot ' sound capital as reported been less than the amount e4Pita 1 notes or debentures sold to the 'Reconstruction Finance Corpora404. r, • It was voted that u.0on receipt of a proper request from the Federal Deposit Insurance Corporation, 1456 6/24/55 -13tie Bank of Jamestown should be certified to the corporation as having assets adequate to enable it to meet all of its liabilities to depositors and other creditors as shown on the books of the bank and the Secretary or an Assistant Secretary of the Board was authorized to issue a certificate to that effect upon receipt of a request from the Federal Deposit Insurance CorDoration. The Board then acted upon the following matters: Letter dated June 20, 1935, from Mr. Sproul, Secretary of the 1"..3 --Kzeral Reserve Bank of New York, advising that, at the meeting of th e board of directors on that date, no change was made in the bank 8 existing schedule of rates of discount and purchase. Without objection, noted with approval. Memorandum dated June 21, 1935, from r. Goldenweiser, Di- teetor of the Division of Research and Statistics, recommending the 13e11444ent aPpointment of Mrs. Ethel L. Evans, who has been temporarily e14%ed as a clerk in the Division since April 4, 1935, with no 04111 ge in her present salary at the rate of 0_ 1620 per annum, effec- tie 48 of the date upon which she passes a satisfactory physical at The recommendation was approved by four members of the 4.11c1(311 June 22, 1935. Approved. Letter to the Federal reserve agents at all Federal reserve 8414 tr . allsmitting forms and instructions in connection with the httt call for condition reports of State member banks. Approved. 1457 6/24/35 -14Letter to Mr. Clark, Assistant Federal Reserve Agent at the Fecleral Reserve Bank of Atlanta, reading as follows: "Reference is made to the application of The Citizens Naional Bank of Athens, Tennessee, inclosed with your letter of ,une I, for one additional share of stock of the Federal Reserve Bank of Atlanta. "The application shows that the bank has $50,000 preferred Stock, $0,000 common stock, 425,000 surplus and 'Reserves for dividends payable in common stock' in the amount of $1,000. In'ermation received from the office of the Comptroller of the indicates that the reserve referred to was set up for the Payment of cash dividends on common stock, rather than for the Purpose of payment of a common stock dividend incident to retirement of preferred stock. Under the circumstances the rrik is not entitled to apply for additional Federal Reserve rtl-c stock. The application, therefore, has been filed without etIon by the Board." Approved. Letter dated June 22, 1935, approved by four members of the lioard 'to Mr. Case, Federal Reserve Agent at the Federal Reserve Bank q mew 17 4.ork, reading as follows: "Receipt is acknowledged of Mr. Dillistin's letter of June 8 of First 1935 ' . ! relating to the voting permit applications Sea co — uzities Cornoration of Syracuse and First Trust & Deposit 1,TPanY, both of Syracuse, New York, and inclosing a copy of a of June 6, 1935, from J. C. Maurer, Vice President, First Securities Qecurities Corooration of Syracuse. "It is noted that Mr. Maurer states: 'We see no reason for f c!ther consideration of the applications for voting permits in with The North Syracuse National Bank'. As you know, the Board has previously ruled that the holding comyau affiliate milationshiPs with the other banks in the group have been tert_tated. Accordingly, in view of Mr. Maurer's statement, the aut:d a will consider the applications of First Securities Corpor:n 1 of Syracuse and First Trust & Deposit Company as withdrawn ess it is promptly advised to the contrary. ti "While it appears that the holding company affiliate relaships with The North Syracuse National Bank may terminate wic) j " the next election of directors of the bank, it should be • 1458 6/24/35 -15- noted that unless voting permits are obtained the stock of such bank owned or controlled 1) First Securities Com)any of Syracuse arid First penosit & Trust Company cannot be lawfully voted at that election of directors or any other meeting of the bank's stockholders until such time as the holding company affiliate relationships are terminated. Please advise both anplicants in accordance zith this letter." " 4proved. Letter dated June 22, 1935, approved by four members of the Boa,' to Mr. O'Connor, Comptroller of the Currency, reading as fol- 1011s: (1. "This refers to the letter dated June 13, 1935 from ,abbs Lyons, Deputy Comptroller of the Currency, regarding the (Pestion whether deposits of Postal Savings funds are affected the recent order of the Banking Commission of the State of • Isconsin reducing the rate of interest which may be paid on L'ime and savings deposits. "The Federal Reserve Board has recently received a request f t om the Federal Reserve Agent at Minneapolis for a ruling by ce Board as to whether member banks located in 'idsconsin will j?,,qualified to accept deposits of Postal Savings funds after 1935, the effective date of the order of the Visconsin a?" .11king Commission. In his letter, the Federal Reserve Agent ' a Minneapolis quoted the following excerpt from a letter dated e 8, 1935 addressed to him by Mr. S. N. Schafer, State BankCormissioner: 'Our attorney has ruled that our recent order, limiting the rate of interest which may be paid on time deposits to 2%, does not cover Postal Savings deposits as those are special secured deposits and are not construed as time deposits. The law gives the Banking Commission the power to regulate interest on ti-re deposits and inasmuch as Postal Savings are not construed as time deposits, they are not covered by our order., schar"AT you will notice from the above-quoted excerpt from er s letter, it appears that the State Banking Commission ha q 8 rUled that its recent order does not cover deposits of Postal LaITings funds. th "There is inclosed herewith a copy of the Board's reply to M e above-mentioned letter from the Federal Reserve Agent at 11fleaPol15. As soon as the Board obtains confirmation of its ' 1459 6/24/35 —16— "understanding that the recent order of the Wisconsin Banking Commission does not apply to deposits of Postal Savings funds, YOU will be promptly advised of such fact." Approved. Letter dated June 22, 1935, approved by four members of the oard, , to Stevens, Federal Reserve Agent at the Federal Reserve of Chicago, reading as follows: "Inclosed herewith is a copy of a letter dated June 10, 1935, and inclosure, from the Federal Reserve Agent at Minne— !;?°11s regarding the Question whether member banks locatcd in ulsconsin will be qualified to accept deposits of Postal Sav— in gs fUndS after July 1, 1935, the effective date of the order of the State Banking Commission of lasconsin reducing the rate of which may be paid by State banks in ';;isconsin upon lame and savings deposits to 2 percent per annum. There is also inclosed herewith a copy of the Board's reply to the above letter. "It will be appreciated if you will communicate with the Federal Reserve Agent at Minneapolis or the State Banking Com— mission of Wisconsin in order to confirm the Board's under— Standing that the Commission's order of May 27, 1935 does not aPPlY to Postal Savings deposits and, upon receipt of such ?°/Ifirmation, notify the member banks in your district located ?-111 Wisconsin that the COMMiSSIOD has ruled that its order of 27, 1935 does not apply to deposits of Postal Savings , 1,1 nds and, accordingly, that member banks in Wisconsin may, 'July 1, 1935, pay interest on such deposits at a rate t01 t exceeding that prescribed in Regulation Q. 'Please advise the Board of the action taken by you in ;fils matter and furnish to the Board copies of any notification .1111ch You may send to the member banks in your district located 111, Wisconsin." Approved. Letter dated June 22, 1935, approved by four members of the lk)4 to Mr. Peyton, Federal Reserve Agent at the Federal Reserve f Minneapolis, reading as follows: 1460 6/2V35 -17- "This refers to your letter dated June 10, 1935, regardthe question whether member banks in Wisconsin will be disqualified after July 1, 1935 to accept Postal Savings deposits in view of the fact that the order of the State Banking Commis!ion dated May 27, 1935 limited the rate of interest which _tate banks may pay upon certain time and saving deposits to 2 percent per annum, whereas the Postal Savings Act requires that deposits of Postal Savings funds shall bear interest at a rate of not less than 21 percent per annum. "In view of the statement in the letter to you from ?/.. , N. Schafer, State Banking Commissioner, dated June 8, 1935, it is understood that the State Banking Commission has ruled that the order of May 27, 1935 does not apply to Postal Savings Posits, and, accordingly, that there is no limitation upon -,he amount which State banks may pay upon such deposits, other than the limitations imposed upon member banks by the Federal Reserve Act and the Board's Regulation Q. "The Federal Reserve Board is of the opinion that deposits ?f Postal Savings funds are time deposits, and, therefore, is in agreement with the opinion of your counsel that member banks which are prevented by State law from paying as much as 2 perc,ent interest on all time deposits are disqualified to receive c_leposits of Postal Savings funds. However, it appears that 6tate banks in Wisconsin are not forbidden to pay interest at : a rate exceeding 2 percent per annum on deposits of Postal Savlngs funds as distinguished from other classes of time deposits ?"11d, accordingly, that in the circumstances of this case there ls no maximum rate within the meaning of section 24 of the Fed?ral Reserve Act authorized by law to be paid upon Postal Savings deposits by State banks organized under the laws of Vase°flain, although there is a maximum rate of 2 percent per annum uthorized by law to be paid upon other classes of time deposits 5 State banks organized under the laws of that State. "Accordingly, on the basis of the understanding that the State Banking Commission of Wisconsin has ruled that the order ff c) May 27, 1935 does not apply to deposits of Postal Savings memisunds, it is the opinion of the Federal Reserve Board that of deposits on interest rr banks located in Wisconsin may pay in prescribed that exceeding Mstal Savings funds at a rate not Regulation Q. ex"It is the Board's understanding that the above quoted cerpt from Mr. Shafer's letter of June 8, 1935 represents the icial position of the Wisconsin State Banking Commission that you if you have not already done so, it ls suggested confirmnfirm this understanding and, after obtaining such 1°n, notify the member banks in your district located in t r i 1461 6/24/35 —18- "Wisconsin that the Commission has ruled that its order of May 27, 1935 does not apply to deposits of Postal Savings funds and, accordingly, that member banks in Wisconsin may, after July 1, 19°5, Pay interest on such deposits at a rate not exceeding that prescribed in Regulation Q. "It will be appreciated if you will advise the Board of the action taken by you in this matter and furnish to the Board 01)1es of any notification which you may send to the member Danks in your district located in Wisconsin.” Approved. Letter dated June 22, 1935, approved by four members of the hoard, to Honorable A. W. Hall, Director of the Bureau of Engraving 414Pr1nting, reading as follows: "Referring to your recent undated letter, it is estimated that Federal Reserve note printing requirements for the fiscal ear ending June 30, 1937, will amount to 8,051,500 sheets as 2,647,000 sheets Fivs " 4,348,000 Tens 11 1,051,000 Twenties 2,000 Hundreds 11 3 500 One thousands 11 8,051,500 Total "You are further advised that the Board is today placing with the Comptroller of the Currency a formal order for the 3111.ting during the fiscal year ending June 30, 1936, of ; 4-u)522,900 sheets of Federal Reserve notes of the various Fed— eral Reserve banks." Approved, together with a letter to Mr. O'Connor, Comptroller of the Currency, in ac— cordance with the letter to Mr. Hall. Telegram dated June 22, 1935, approved by four members of the 13 (3a1 d, to Mr. Peyton, Federal Reserve Agent at the Federal Re— zetve 8alik of Minneapolis, reading as follows: "Retel June 21, should present permanent insurance provi— ' 10 1s of Section 1213 of Federal Reserve Act become effective, 1462 6/24/35 -19"Class A stock in ;TIC purchased by State member banks may be carried as an asset at purchase price. Refunds received from corporation on assessment made under temporary fund should be credited to account to which such assessment was charged." Approved. Letter dated June 22, 1935, approved by five members of the toard to mr. C. McNamara, Jr., The John C. McNamara Organizatiori, 1,er , York, New York, reading as follows: John "Reference is made to your letter of May 17, 1935, to Governor Eccles in regard to the proposal that member banks pur&se single premium annual yield insurance policies on the 4aves of debtors owing slow, unprotected loans. You request advice as to the attitude of the Federal Reserve Board in re!Peet to the valuation of such single premium policy contracts c18 assets of member banks and as to the acceptability of such contracts as collateral for loans to member banks. "With regard to your first inquiry, the Board is not in a f.i osition to state what values would be allowed by the examiners Federal Reserve banks on a life insurance policy held in .Lle assets of a member bank, since the value allowed by an ex:miner would necessarily depend upon a consideration of all the Iractors developed by his review of the policy contract and the e"Ponsibility of the company which issued it. Ordinarily, how: cry in the absence of any qualifying conditions, life insurCe oolicies issued by responsible companies when held as an _7sset of a bank would be valued at the amount for which they ma-Sr be surrendered for cash. "In connection with your second inquiry, you are aware, of col,„ -,se, that under existing law the insurance policies to which 2 Y 1-1 refer, if held by a member bank, would not be eligible for 'ilidiscount with Federal Reserve banks and are not included in types of collateral which are eligible under the provisions ; 1 Section 13 of the Federal Reserve Act as security for adnances by Federal Reserve banks to member banks. Should the 51‘0Posed Banking Act of 1955 become law, the Board will necesw lY consider what changes should be made in its regulations e ' L4 respect to the character of collateral that would be ac'Pted as security for member bank promissory notes." Anproved. Letter to Mr. Kettig, Deputy Chairman of the Federal Reserve 1463 6/24/35 az* -20- of Atlanta, reading as follows: . "In response to your letter of June 19, 1935, you are advised that the Federal Reserve Board has approved payment by the Federal Reserve Bank of Atlanta to Mr. A. K. Merrill, of Dothan, Alabama, and Mr. J. C. Fleming, of Elba, Alabama, Attorneys at Law, the sum of i',1,229.56 as attorneys' fees in connection with services rendered in the case of the Federal Reserve Bank of Atlanta v. the Estate of Morgan P. Adams, the aYment of said fee having previously been authorized by the txecutive Committee of the Federal Reserve Bank of Atlanta uoon the recommendation of the Bank's General Counsel." Approved. Letter dated June 22, 1935, approved by four members of the cqlrd, Batlit to Mr. Curtiss, Federal Reserve Agent at the Federal Reserve of Boston, reading as follows: "Receipt is acknowledged of your letter of June 6, 1955, relating to the voting permit application of General Educational und, Inc., Founded by Emma Eliza Curtis, Burlington, Vermont, fld inclosing copies of certain corres?,ondence between :Ir. acRae and C. E. Brigham, treasurer of the applicant, concerning „ProPosed plan for the termination of the holding company affiliate relationship. It is understood that The Merchants National Bank of Rtirl-Lington, Burlington, Vermont, the applicant's only subsidiary member bank, has 3,750 shares of stock outstanding, that 2,835 V5 shares were voted at the preceding election of directors, Vld that the applicant is the record owner of 2710 3/5 shares. 1r1 his letter of June 3, 1935, Mr. Brigham states that the apPlioant proposes to sell 1,350 shares of such stock, thus leavi l ng it the owner of 1,360 3/5 shares. On the basis of these acts alone, the Board is of the opinion that, upon the consumti°n of the proposed plan, the holding company affiliate relationship would be terminated, if the sale of the stock was a bona fide sale and the applicant relinquished all interest in or control over the stock. "However, it appears that the applicant may own or control , additional 150 shares which are registered in the names of the trustees of the applicant in order to clualify them as direc)rG of the subsidiary bank. It is understood that such stock ; ilais Purchased from the applicant for a nominal consideration, at each trustee executed an agreement to reconvey such stock T 1464 6/24/35 -21- "to the applicant upon the termination of his services as a director of the bank and that the stock has been indorsed in blank and returned to the custody of the applicant. There is some indication in Mr. Brigham's letter of May 20, 1935, that he considers such stock to be stock controlled by the applicant. If such stock is owned or controlled by the applicant, the holding comPany affiliate relationship would not be terminated by the consummation of the proposed plan. If a definite ruling is deSired concerning this matter, the Board will be glad to give it Iurther consideration upon receipt of an expression of your views, together with any additional information which may be a vailable. "Consideration should also be given to the fact that under the Proposed plan the number of directors of the bank would be reduced and only two of the trustees of the applicant would serve as directors of the bank. Presumably at least a portion °f the stock now registered in the names of the individual . rustees would be reconveyed to the applicant in accordance with Ia.ls above-mentioned agreements and hence the holding company afIlliate relationship might not be terminated even though it _Liould be determined that such stock is not now owned or controlled 0Y the applicant." Approved. Letter dated June 22, 1935, approved by four members of the 11(kra ) to Mr. Sargent, Assistant Federal Reserve Agent at the Federal zFYN. "e Bank of San Francisco, reading as follows: "This refers to your letter of May 23, 1935 relating to the vet. lng permit application of San Diego First National Company, iral Diego, California, for a voting permit authorizing it to (31.e the stock which it owns or controls of The First National , ?..rust and Savings Bank of San Diego, San Diego, California, and ubmltting certain information with reference to the possible ermlnation of the holding company affiliate relationship. s . "The Board understands that The First National Trust and 8."-ngs Bank of San Diego has 10,000 shares of preferred stock p : ltd 5,000 shares of common stock outstanding; that San Diego elrst National Company owns or controls 4831 shares of the ZImon stock; that the Reconstruction Finance Corporation owns d.4- of the preferred stock; that at the preceding election of 1'ectors 200 shares of the common stock and all of the shares Preferred stock were voted; that San Diego First National Z 4 1465 6/24/35 "Company then owned or controlled 4826 shares of the stock but ;oted only 41 shares; and that the Proxy for the Reconstruction ,!.nance Corporation had no connection with San Diego First Naienal Comnany or The First National Trust and Savings Bank of ' an Diego. "On the basis of these facts the Board is of the opinion that San Diego First National Company is not now a holding cornaffiliate of The First National Trust and Savings Bank of Diego anid, accordingly, it is assumed that no further con?-deration need be given to the application for a voting permit. , 11 the absence of any further facts which you oelieve should r considered by the Board you may advise San Diego First Nanal Company in accordance with this letter. It may be noted ,at if the Reconstruction Finance Corporation should issue a for a future meeting to San Diego First National Company 4 person or persons under its control, a further question a.Ight arise concerning the existence of a holding company affilit e relationshie at the time of such meeting and it is suggested 0 at You bring this to the attention of San Diego First National miroany e n Zr Approved. Letter to 14r. Curtiss, Federal Reserve Agent at the Federal Bank of Boston, reading as follows: 193 "Consideration has been given to your letter of May 21, ti 5 and inclosures with further reference to a possible violati17r1 of section 32 of the Banking Act of 1953 resulting from e holding of certain bonds by C. F. Childs and Company, Inc., New v York, Nev York, for The Poultney National Bank, Poultney, t,rm°nt, which was referred to in the report of examination of national bank. ch., It now appears that the bonds were Purchased from C. F. allIt6s and Company, Inc. and left with that company temporarily, tia , ating instructions as to their disposition. These instrucev-118 were not given as soon as the bank had anticipated. Howpr , after the criticism of the bank examiner, the bonds were m2tlY transferred to the Federal Reserve Bank of Boston for eePing. It further appears that the national bank has no de eli ngs with C. F. Childs and Company, Inc. other than purt„,411ing and selling United States Government securities through and that C. F. Childs and Company, Inc. is not performing a" uanking function on behalf of the national bank, nor acting Medium or agent or in any similar capacity for the national 4 1466 6/24/35 -23- "bank in connection with the underwriting or flotation of securities. . "Under the circumstances, the Board sees no reason to differ with your conclusion and that of your General Counsel that C. F. Childs and Company, Inc. is not a correspondent of the national bank within the meaning of section 32 of the Banking Act of 1233." Approved. Letter to :Ir. McAdams, Assistant Federal Reserve Agent at the Federal Reserve Bank of Kansas City, reading as follows: "There are inclosed the original and copies of the Clayton .1,c't permit granted to Mr. Carroll B. Merriam, Topeka, Kansas, , , 60 serve at the same time as director and officer of Federal Rome Loan Bank of Topeka and as director and officer of The 1Central National Bank of Topeka, both of Topeka, Kansas, for the period ending January 14, 1936, for transmittal by you to the applicant and the banks involved; a copy is also inclosed 4or your files. "It is noted in your report (F.R.B. Form 94b - item 18) that aPplication was made to serve as diroctor and officer of Central Trust Company, Topeka, Kansas, but that the application was subsequently amended to exclude such service since the rovii(Aons of Section 8 of the Clayton Act do not appear to e to this relationship and since the latest report Of applicable examination of Central Trust Company indicates th4t that institution makes no loans on the security of stock or bond Frollateral within the contemplation of Section 8A of the Act. is assumed that, if you have not already done so, you will ect Mr. Merriamts attention to the provisions of Section 8A (f the Act and inform him that in the event the Central Trust c)oillpanY in the future makes loans on the security of stock or bona collateral, his services with this institution while at banke same tine serving as a director, officer or employee of a organized or operating under the laws of the United Staes will be in violation of the Clayton Act unless there is in force a permit therefor. "hen the permit is sent to the applicant and copies thereofIn. to the banks involved please advise them that the per' 1 has been issued so as to expire at the close of January 14, 1936 as there is now pending before the Congress proposed vgislation for the purpose of clarifying and otherwise amending t 1467 -2 provisions of the Clayton Act relating to interlocking directorates. Approved. Thereupon the meeting adjourned.
@FedFRASER