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99 A meeting of the Federal Reserve Board was held in the office of the Aderal Reserve Board on Tuesday, March 15, 1932, at 11:30 a. m. PIUMIIT: Governor L:eyer Hamlin Er. Miller Mr. James Mr. Magee 11±. Morrill, Secretary Mr. 1.7cClelland, Assistant Secretary Mr. Harrison, Assistant to the Governor. The following matters of business were considered and acted u)on by the Board: Application of Mr. C. K. Boettcher for permission to serve at the same time as director of the Denver rational Bank and the international Trust Company, both of Denver, Colorado; approval of the apPlication bein7, recouLended by the federal Reserve Agent at Kansas Cit:, and Fr. Hanlin of the Law Committee. Fr. =or, the other member of the Law Committee, stated that he had not joined in the recorliendation as, in his (minion, the Clayton Act did not contemplate that interlocking directorates such as that involved in Mr. Boettcher's application should be permitted. A discussion followed at the conclusion of which it was decided to advise Mr. Boettcher that, on the basis of the information before it, the Board is unwilling to approve his application, although, in accordance with Regulation L, Section IV(f) it will, before taking final action, consider such additional facts or arguments bearing on the subject as he may care to submit. Telegrams dated Farch 11, 1932, from the Secretary of the Federal Reserve Bank of Atlanta and March 14, 1932, from the Secretary of the Federal Reserve Bank of Minneapolis, both advisin- that at meetings of the directors on the dates stated, no changes were made in the banks' existing schedules of rates of discount and purchase. Jithout objection, noted with approval. ) -2- 3/15/32 Reports of the Caumittee on Salaries and Expenditures recommending approval of changes in the personnel classification plans at Federal reserve banks, as follows.: Kansas City Dallas - - The creation of the new positions "Stenographer-Clerk" and "Typist-Clerk" in the Loans, Rediscounts and Acceptances, Credit Department of the bank. The creation of a new department at the head office to be called the "Reconstruction Finance Corporation Department", and of the new position of "Manager" of that depart.ment, the expenses- of the department being reimbursable by the Reconstruction Finance Corporation. Recomendations approved. Telegram to Deputy Governor Logan of the Federal Reserve Bank of New York, replying to his wire of Larch II, 1932, requesting approval of the purchase by the New York bank from the Letuchen National Bank, Iletucher2, New Jersey, of a Vocational School Lote of Middlesex County, New Jersey, in the amount of .;33,000; the reply stating that the Board authorizes the purchase with the understanding that the note meets all of the requirements of Regulation E except that together with 1.35,000 of Middlesex County tax anticipation bonds which were also acquired from the Metuchen National Bank, the New 'York bank's total holdings of warrants of that municipality will be in excess of 25;3 of the total warrants of the municipality outstanding. Reply approved. Reply, approved by five members of the Board on March 14, to a letter dated March 7, 1932, from the Chairman, of the Federal Reserve Bank of St. Louis requesting approval of an amendment to the by-laws of the Louisville Branch, adopted by the Board of Directors of the bank at its -3- 3/15/2 neeting on - larch 2, to Provide for a rec:ular meeting of the branch board on the Thursday next after the first Wednesday of each month instead of on the Thursday next after the third Wednesday of each month; the reply statin,7 that the federal Reserve Board approves the amendment referred to. Reply approved. Letter to the First rational*3an:: in highland 14111s, New York, apnroved by five members of the Board on Farch 14, 1032, statjn that the Federal Reserve Board has deferred action on the hank's anplication for permission to exercise fiduciary powers under the provisions of Section 11(k) Of the Federal Reserve Act, until after receipt of the next report of exanination of the bank. Letter approved. Telegraphic reply, approved by five nenbers of the Board on Thrch 12, to a letter dated Larch 0, 1932, from the Governor of the Federal Reserve Bank of Kansas City, referring to the possibility of the receipt in the near future of applications of member banks in Tulsa, Oklahoma, for advances under Section 10(b) of the Federal Reserve Act and recuestin[; an expression Of opinion as to the possibility of such advances receiving the approval of the required five members of the Federal Reserve Tloard; the renly stating that it is not nossible for the Board to express an opinion in advance but that upon receipt of the information requested in its letter of Larch 10, 1932, regarding the procedure to be followed under Sections 10(a) and 10(b) Of the Federal Reserve Act, the Board is Prepared to give Prompt consideration to the natter. Reply approved. P'02 3/15/32 At this Point the Chairman joined the meeting. Letter dated Larch 12, 1932, from Congressman T. Alan Goldsborough stating that hearings on stabilization will begin before the Committee on Banking and Currency of the House of Representatives on T'arch 16 and will be continued before a sub-comittee, of which he has been designated Chairr:an, and that the Committee would like to have representatives of the Federal Reserve Board Present at these hearings. The Governor stated that Congressman Goldsborough had also called him on the telephone with regard to the natter. A discussion followed, at the conclusion of which it was decided to request Hr. 'T. W. Riefler of the Division of Research and Statistics to attend the hearings for the Purpose of furnishing the Committee with such information and statistical data as may be desired and the Secretary was directed to prepare a letter to Congressman Goldsborough for the signature of the Governor, advising that nr. Riefler will attend the hearings but that it is understood that he will not be expected to speak for the Board nor to express an opinion as to the merits of the measures under discussion. Letter dated ',larch 12, 1932, from the Chairman of the Board of Directors of the Federal Reserve Bank of Atlanta, stating that at the meeting of the directors on ;,arch 11 it was voted, subject to the approval of the Federal Reserve Board, (1) to fix the interest or discount rate for advances Under Section 10(a) of the Federal Reserve Act, at l above the discount rate of the bank at the time of making such advances, (2) to fix the interest or discount rate for advances under Section 10(b) of the Act, at 1,7) above the highest discount rate in effect at the bank on the date the advance is made, and (3) to authorize and empower the Executive Committee of the brink, with the approval of the Federal Reserve Board, to make advances under the Provisions of Sections 10(a) and 10(b) of the 7ederal Reserve Act; 3/15/32 the letter also stating that, while no applications for such advances have been received, the directors deemed it advisable to establish a rate of interest or the advances so that if arTlications are received under emergency conditions they may be acted on promptly and the Board's approval requested by telephone or telegraph. discussion ensued, which developed that it was the consensus of the nembers Present that advances under Section 10(b) of the Federal Reserve Act Should not be lower than the rate (5 1/2 :) now charged by the Reconstruction Finance CorPoration on loans nade by it. 1.:±. the the the At the conclusion of the discussion, Tames was requested to communicate to Chairman of the Atlanta bank by telephone attitude of the Board as expressed during discussion. Reports of Standing Corataittee dated 1,:arch 11 and 15, recommending approval of the following changes in stock at Federal reserve banks: A )lications for SURRENDER of Stock: District 1.0. 1. First National Dank, Litchfield, Connecticut. (Decrease in surplus) North Berwick National Bank, North Berwick, 2.1aine. (Decrease in surplus) Georgetown National Bank, Georgetown, Lass. (V.L.Terminal) District Lb. 2. Citizens National Bank, Albion, N. Y. (Insolvent) District No. 3. Point Pleasant Beach National Bank & Trust Co., Point Pleasant Beach, N. J. (Insolvent) Coast National Bank, Sea Side Heights, N. T. (Insolvent) Curwensville National Bank, Curwensville, Pa. (Decrease in surplus) Now Holland National Bank, New Holland, Penna. (T.L.Abs. by Farmers National Bank and Trust Company of New Holland) Shares 15 12 36 63 136 166 51 26 43 165 320 3/15/32 Avolications for SURRENDER of Stock: (bont,d) District No. 4. Peoples National Bank, Wellsville, Ohio. (Insolvent) First National Bank, Mount Pleasant, Penna. (V.L.Abs. by Citizens Savings and Trust Co.) Peoples National Bank, Yount Pleasant, Pa. (V.L.Abs. by Citizens Savings and Trust Co.) District No. 5. First National Bank, Victoria, Va. (Insolvent) First-Citizens National Bank, Pennsboro„ U. Va. (V.L.Suc. by Citizens Bstik) District No. 7. 'Depositors State Bank, Chicago, Ill. (Insolvqnt) liendota National Bank, Mendota, Ill. (Insolvent) First National Bank, Rio, Wis. (V.L.Suc. by -Axst State Bank) First National Bank, Hamilton, Ill. (Insolvent) First National Bank, Shelbyville, Ind. (Insolvent) Pioneer National Bank, Waterloo, Iowa. (Insolvent) District No. 8. First National Bank, Mound City, Ill. (Insolvent) District No. 10. First Nationn1 Bank, Pittsburg, Kansas. (Tnsolvent) District No. 11. City National Bank, Colorado, Texas. (Cons. Colorado National Bair in Colorado, Texas, with the above bank) First National Bank in McKinney, Texas. (V.L.Abs. by Collin County National Bank of McKinney) District No. 12. Seaside National Bank, Long Beach, Calif. (Insolvent) First National Bank, Condon, Oregon. (Decrease in surplus) Shares 120 135 60 315 20 90 110 390 84 21 36 150 180 861 30 30 120 120 15 72 87 198 12 Total 210 2,302 Approved. Reports of Standing Comnittee dated March 11, 12 and 15, reconrending aPProval of the following Clayton Act applications: Mr. W. E. Connell for permission to serve at the sane tineas officer of the First National Bank of Fort Worth, Texas, and as director of the Citizens National Bank of Post, Texas. 3/15/32 -7- fl±. Wirt Davis for permission to serve at the same tine as director of the Republic National Bank and Trust Company of Dallas, Texas, as director of The Liberty State Bank of Dallas, Texas, and as director of the Oak Cliff Bank and Trust Company of Dallas, Texas. Mr. C. A. Bowman for remission to serve at the same time as director of the Denver National Bank of Denver, Colorado, and as director and officer of the Guardian Trust Company of Denver, Colorado. ITir, Charles H. SiMMS for permission to serve at the same time as director of the Winters National Bank and Trust Company of Dayton, Ohio, and as director of the First National Bank of Osborn, Ohio. Approved. 11 Thereupon the meetin adjourned. Secreta
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