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276 A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Wednesday, March 20, 1929 at 11:00 a.m. PRESENT: uovernor Young Mr. Platt Mr. Hamlin Mr. Miller Mr. James Er. Cunningham Mr. Noell, Asst. Secretary Mr. McClelland, Asst. Secretary The minutes of the meetings of the Federal Reserve Board held on March 19th were read and approved. Telegram dated March 20th from the Assistant Federal Reserve Agent at advising that the board of directors at a meeting on that date inacle no change in the bank's existing schedule of rates of discount and purchase, dithout objection, noted with approval. Report of Committee on Salaries and Expenditures on letter dated March '6th from the Deputy Governor of the Federal Reserve Bank of New York, trans111 tti i -41g a list of employees for whom the directors of that bank approved leaves (3f absence with pay, on account of illness, during the month of February, where the , uotal of such absences since January 1, 1929 has exceeded thirty days; the card% 8 Committee recommending approval of the salary payments involved. Approved. Letter dated March 19th from the Vice President of the Foreign Trade 4c"ties Company, Ltd., New York City, requesting a further extension for 4 Period of thirty days of the reservation of the title "Foreign Banking and 141/estment Corporation" for the corporation which it is pro posed to organize I', 3/20/29 _2- 114der Section 25 (a) of the Federal Reserve Act. Upon motion, an extension of thirty aays from March 27th was approved. Letter dated March 19th from the Assistant Federal :Reserve Agent at New Y°11c, advising that the directors of the Hanover National Balk, New York, N. Y• arid the trustees of the Central Union Trust Company, also of New York City, have '4)ted to recommend to the stockholders that the two institutions be merged under the trust company's charter, some time subsequent to May 2nd. Noted. Memorandum from Counsel dated March 19th with further reference to the itterlocking directorates of Mr. John E. Buckingham, involving four national ballks; Counsel recommending, in view of the fact that the question of liquidatthe First National Bank of Fleming, Ky., one of the institutions involved Iir• National Buckingham's application, or of consolidating it with the First 4111C °f Jenkins, Ky., is now being considered, action by the Board on the apPlication ue deferred for a period of three months. Upon motion, Counsel's recommendation was approved. Letter dated March 15th from the Federal aeserve Agent at St. Louis adthat unaer the proceedings instituted by the Board, on March 12th the Caftv,• - 1er Of the American Bank and Trust Company, Paris, Ark., appeared before ' 4141 to show cause why the bank should not forfeit all rights and privileges orm_ that the "'wnuership in the Federal Reserve System; the Agent recommending 11;00 hellring before him be further continued until Tuesday, March 18, 1930 at on a.m„ and that before the Board until a week after March 18, 1930 1'0 3/20/29 -3- condition: (1) that the bank will collect or charge off on or before April 30, 1929, 4f;16,683 of doubtful items shown on a list attached with his letter; (2) that it will furnish him monthly reports beginning May 1st, showing progress i Made -n collecting or reducing .0172,871 of loans contained on another list encl0 8ed; (3) that liabilities of officers, directors and their interests be kept at minimum; (4) that the right be reserved to hold the hearing at an earlier clete if deemed advisable; and (5) that the bank advise over the signature of tB directors of the acceptance of these conditions. In his letter, the Fed- Reserve Agent advised that considerable improvement has already been made ill the condition of the bank, that it is believed that the directors and officers are earnestly endeavoring to put the bank in satisfactory shape and that it has realized that unfavorable consequences may develop if the bank were expelled to membership in the System. He also stated that if continuance of the hearis approved an examination will be made shortly before the hearing to deterthe progress made as well as one in the interim - about August 1929. After discussion, upon motion, it was voted to approve continuance of the Board's hearing in the above case until Tuesday, March 25, 1930 at 11:00 o'clock a.m. subject to the conditions recommended by the Federal Reserve Agent at St. Louis. Letter dated March 19th from the Governor of the Federal Reserve Bank of aielym„ lid, transmitting copy of a letter, in connection with the resolution ' 4''10Pted by the Federal Advisory Council at its recent meeting, which is being 44t Pr incipally to those member banks in the Fifth District, which at the time of the last call report, December 31, 1928, were lending to brokers and dealers 14 se euritles, whether borrowing from the Federal deserve bank or not. Ordered circulated. (-ad I ,111 3/20/29 -4- The Governor then presented a letter dated March 18th from the Vice Pl'esident of the National Commercial Bank and Trust Company, Albany, N. Y., slAggesting Welnesday, April 3rd, as the date for the proposed hearing in Connection with the application for the termination of the designation of Albany as a reserve city. The Governor called attention to the fact that the Governors' Conference is being held April 1st to 3rd and that ordinarily on the last day of the Conference it meets jointly with the Board. Upon motion, it was voted to advise the Albany member bank accordingly, and suggest that the hearing be held on . April 1st, at 11:00 o'clock, if that is agreeable, or, if not, one week later at the same hour. During the discussion, the Assistant Secretary was instructed to arrange to have the Chief of the Division of Bank Operations prepare certain data for the use of the Board on the occasion of the proposed hearing. ill'OATS OF STANDING C0ITTEES: Dated, Recommending a change in stock at a Federal Reserve bank as set forth in the Auxiliary Minute Book of this date. Recommendation approved. Dated, March 19 th, Recommending approval of the application of Mr. William Murphy for permission to serve at the same time as director of the Atlantic National Bank, Charleston, S. C., and as director and officer of the Citizens & Southern National Bank, Savannah, Ga. Approved. March 19th, meeting adjourned at 12:00 o'clock noon. 4Pprovsd: Assistant Secretary. rrior•
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