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A meeting of the Executive Committee of the Federal Reserve Board was held in the office of the Federal Reserve Board on Thursday, March 19, 19319 at 12:10 p. in. PRESENT: Governor Mayer Mr. Hamlin Mr. James Mr. McClelland, Assistant Secretary. The Assistant Secretary presented various communications and reports Which were considered by the Committee and acted upon as follows: Telegram dated March 18th from the Chairman of the Federal Heserve 1141. Cif St. Louis, advising that his board of directors, at its meeting on that clate, made no change in the bank's existing schedule of rates of dAscoant and purchase. Without objection, noted with approval. Letters dated March 16th from the Comptroller of the Currency, rec)rilraell(iing approval of National Bank Examiners' salaries as follows: Salary recommended Name Chelsea Underwood Walter W. Olson Gustave d. Jorres 3,000 2,700 Approved. aeport of Committee on Salaries and Expenditures on letter dated karch 16 th, from the Secretary of the Federal Reserve Bank of Atlanta, 4c4laihg of vacation periods fixed b, the board of directors of that bank tor the officers 1.11g the and employees of its head office, branches and agencies current year; the Board's Committee recommending approval. Upon motion, it was voted to interpose no Objection to the vacation periods fixed by the board of directors of the Atlanta bank. 41-1 , 3/19/31 -2Letter dated March 16th from Deputy Governor Gilbart of the Federal Reserve Bank of New York, replying to letter approved at the meeting of the 'Ixecutive CoLauittee on March 11th, with regard to the acceptance of to, ' dvntinuation certificates" as receipts for the payment of premiums on bonds e°vertag Federal eserve agents and Assistant Federal Reserve agents; Mr. Gilbart's letter enclosing bonds in the amount of v100,000 and „,;50,000, "ecuted under date of March 16th by 2,:r. J. H. Case as Federal Reserve Agent, 41:411 "W. H. Dillistin as Assistant Federal Reserve Agent, respectively, 44c1 "sued to take the place of previous bonds on which "continuation cert ificates" had been accepted. Upon motion, the bonds submitted with Mr. Gilbart's letter were approved. Upon motion, the circular letter to all Federal Reserve agents with regard to accepting "continuation certificates", on which action was deferred at the meeting on March 11th, was also approved and ordered transmitted. Draft of reply to letter dated March 16th from the Chairman of the 4aer41 aeserve 3ank of Atlanta advising that at the meeting of the directors °t the b410:k on March 13th, it was voted, subject to the approval of the 4Sra, to authorize the Federal Reserve Agent and the Federal Reserve 3ank °f Atlenf —49 through its Governor, to enter into an agreement continuing a teaerv e st°ok of ,g,000,000 of unissued Federal Reserve notes at the Jack1 e Branch after the expiration of the present agreement on April 1, 194; t he Proposed reply stating that the Board will interpose no objection to the co/It' lnuation of the reserve stock under the same arrangement as Rove tho r'ed. the original establishment of the stock, it being understood, as in A 1 the original agreement, that if at aAy time the arrangement should, tor 44Y ran.-"n. appear to be impracticable or in any way objectionable, the -3_ 11 Pederal Reserve Board will require it to be discontinued or modified in any NT which may seem proper under the circumstances. Upon motion, the proposed letter was approved. Letter dated :larch 14th from the Federal Reserve Agent at the Federal Reserve Bank of Chicago, transmitting a voluntary notice of Intention to withdraw from membership in the Federal Reserve System filed by the TwentyStreet State Bank of Chicago, and recommending that inasmuch as the 1111111k has recently entered into a contract to sell its assets to the Lawndale t1°11al Bank of Chicago, the Board grant the bank's request that it be lellalitted to withdraw from membership immediately. Upon motion, it was voted to waive the usual requirement of six months' notice of intention to withdraw from membership in this case, and to permit the Twenty-sixth Street State Bank of Chicago to withdraw from membership immediately under the voluntary notice of intention filed by it. Letter dated Larch 12th from the Governor of the Federal :deserve Bank Or Dal las, with regard to the unsatisfactory condition of the First National 411k A+, Fa Paso, Texas. Noted, and copy ordered transmitted to the Comptroller of the Currency with a request that he advise the Board of any plan he may have in mind looking toward an adjustment of the affairs of the bank. Draft of reply to letter dated Larch 14th from the Federal deserve 4111t A*. '16 411 ' 4 .1 rovni the Federal Reserve Bank of Chicago, inquiring whether the Board will formal applications from the Peoples Wayne County Bank of Detroit for -4 ' Of its action in takin over the assets and liabilities of the 41b..4 State Bank of Detroit, and from the Highland Park State Bank of 'A Park, Michic-an, for approval of its action in taking over the assets -44401 liabilities of the American State Bank of Highland Park, Eichigan; the PIMposed reply stating that in view of the circumstances, and in the light °f the favorable recommendations of the Lxecutive Committee of the Chicago /111111k, the Board will interpose no objection to the transactions. Upon motion, the proposed letter was approved. Memorandum dated March 11th from the Comptroller of the Currency, l'eclotamending approval of an application filed by the First National Bank of CalitIllan, Georgia, for permission to reduce its capital stock from 4150,000 to effective if and when the applicant bank is consolidated with the ?eeples National Bank of zuitman, under the title of "Peoples-First 114t141°-al Bank of Quitman"; the plan of consolidation involving the elimint1°14 of criticized assets totalling y95,965.90 from the consolidating banks the 450,000 released by the capital reduction of the First National Bkk and the 450,00o capital of the Peoples National Bank. Upon motion, it was voted to approve the reduction effective if and when the proposed consolidation is consummated and on condition that no part of the reduction be returned to the shareholders, but that the entire amount be used, in accordance with the plan of consolidation, in the elimination of criticized assets. Ilemorandum dated March 16th from Mr. Hamlin in connection with a rzeitora 11(111:m from Counsel dated March 16th, with regard to the question whether he 1°11 National Bank of Lenoir, N. C. which was authorized by the Board 011 i,eb 14r,Y 27, 1931 to exercise such trust powers as are necessary in the 441141 : tg °f trusts taken over from the First National Bank of Lenoir, may LIqt , " -executor or co-administrator under a will filed with the trust 134rtnie ' rregt Of the First National Bank an April 26, 1930, and becoming 011 January 3, 1931, at which time the First National Bank was closed; 3/19/31 -5- 11r, Hamlin stating that, in his opinion, the Union National Bank may accept partiaular trust under the authority granted, since the Board, in refusing to Permit acceptance of any new business, had in mind any trust business not acquired. by the Union National Bank fram the First National Bank of Lenoir. After discussion, upon motion, it was voted to advise the Federal Reserve Agent at dichmond that the bank may accept the particular trust referred to under the authority granted by the Board. 2Zemorandum fram Counsel, dated Liarch 18th, submitting draft of tele'BIn to the Federal deserve Agent at Dallas, with further reference to compliance by the Security State Bank and Trust Company, Beaumont, Texas, with the sPecial condition of membership under which the bank is required to increase lt8 capital stock within five years to 4200,000; the proposed telegram stating, 14 r. to inquiries made by the Federal Reserve Agent, that calculation of the -411101nt to be set aside out of 1929 earnings to a fund exclusively applicable to 44 illereaSe in capital should be based upon the entire net earnings for that Year, and that as regards 1930, necessary entries should be made 1 ea, .&4t81Y preceding the payment of each dividend. Upon motion, the proposed telegram was approved and ordered transmitted. C) 112 ' 4ated OF STItizii:CiQ. ITTELS: 4arch 18th liecarnmendinfz changes in stock at Federal deserve Banks, as set forth in the Auxiliary Linute Book of this date. decommendations approved. The meeting adjourned at 12:45 p. m. i/oeritaa Assistant Secretary ADDroirell (2.%Geutive k zaittoe) 41.1=7 I_AY (::_arch1D, 19,1) 4soorts of ,.;talldin.; datsaa r,eco-3nlin stnro at 2e,derl Lfve 3a,as, ao)rOvoci as follows: 1-1;112-1-4..g.ons for of tt:O2. , 116 ' 204 Pulls :;ational BanIc, 2alls, Y. 11 _Ltional 1-nk., of ::',1dson in '1,(11,, 11Q 65 65 '44gsla1za .:onot3, Ohio. (V.L.Ab5. by Peo)les •:^tiorlal Banl-c of .:a1.) - aoneta) 90 90 41-11*:1, 1's ;'• Lerchants ;,;ational Aoc,,c,aart, L. kI u4e, nsolvent) 43011 BanIcia3 1..pany, Jaskson, ,Jeor:ia. (Insolvent) 30 36 66 Dist • 3t :;ationalIowa. (Insolvc3nti 'r2t estfield, Illinois. (insolvent) W 6f7/( 7 44,:pprov 20 43 2otal 68 232.. //1;/,'/2 •.ssistant-Jooretary.
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