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A meeting of the Executive Cammittee of the Federal Reserve Board was held in the office of the Federal Reserve Board on Friday, March 27, 1931, at 12:30 p. n6 PRESENT: Mr. Mr. Mr. Yr. Hamlin Miller James McClelland, Assistant Secretary. The Assistant Secretary stated that the Comptroller of the Currency tciclaY made a call on all nation:11 banks for reports of condition as at the alcile of business on larch 25th, and that in accordance with the usual pro— clIzre, a call was issued on behalf of the Federal Reserve Board to all atste member banks for reports of condition as of the same date. Upon motion, the call made on behalf of the Federal Reserve Board was formally approved. The Assistant Secretary then presented the following matters which considered by the Comittee and acted upon as follows: We Bea* Letter dated Larch 26th from the Secretary of the Federal Reserve Or16W or York, and telegrams dated March 25th from the Federal Reserve Banks tioston and Kansas City, all advising that at meetings of their boards of Gor. 'J on the dates stated, (at Boston a meeting of the Executive Committee Wu ha, d in lieu of the regular meeting of the board of directors) no changes ere tad 6 in the banks' existing schedules of rates of discount and purchase. Without objection, noted with approval. Viezio randum dated March 24th from the Chief of the Division of Bank 4 oh. 1-4 ellbmitting statements showing expenditures by all Federal Reserve 4 444 11°1' educegonal and welfare work, etc., during the month of February the ,wo months' period ending February 28, 1931. Ordered circulated. 3AW31 -2- atter informally approved by the Executive Conadttee on rarch 24th; R 1111111e1Y, reply to letter dated :arch 19th from the :?ederal 1:eserve Agent at 4113aa City enclosing copy of an agreement covering the maintenance of stocks or ulliseued 2ederal 'eserve notes at the Oklahoma City and Omaha Branches of the Federal ieserve Bank of Kansas City, executed by the Federal Reserve Agent 414 the Governor of the bank, under authority of the board of directors, and a ccordance with the Board's letter (X-6766) dated Lovember 25, 1930; the ePlY stating that the 1.7edera1 lieserve Board has no objection to the establishtQe "of reserve stocks of unissued notes at the Oklahoma City and Omaha Branches 17ith the understanding that the Board reserves the right to recuire the 11111'alleraent to be modified or discontinued if at any time it should see fit. Formally approved. Draft of reply to letter dated Yarch 20th from the -lederal 7,eserve e/l.t at St. Louis, reporting continuous reserve deficiencies on the Dart of the l'..01nt Olive State Bank, Mount Olire, Illinois, durirc: the six months' iper341 endinC ?ebruary 28, 1931, and recommending, in view of the situation Qiltlined and the promise of the bank to cooperate in maintaininn its reserve 14 flature, that the Board take no action in the ratter at this time; the 151'0Dosed reply stating that the Board will follow the Yederal eserve a-ent's l'"°111endation. Upon motion, the proposed letter was approved and ordered transmitted. or the DI'4ft of reply to letter dated Larch 18th from the Union National Bank '14orth 4etioll Carolina, to the Comptroller of the Currency, referring to Of the 1?ederal ieserve Board in withholding full trust powers until 4rnination of the bank is made by the Comptroller, and requesting " he QrrEln':e to Have the bank examined at the earliest possible date; the k 3/27/31 -3- Pr°Posed reply stating that the Board's action did not conte plate a special e4aIllination bu: the usual Periodical examination made by the Comptroller of the °IlrrencY, which would give the institution a reasonable time to function arter its organization, thus enabling an intelligent analysis to be made of the , character of the management as well as of the cualif'ications of those he'vina" supervision of the trusts now under administration, and that following l'eceiPt of the report of the next regular examination of the bank, its applicat1011 will again be considered by the Board for the additional fiduciary Uthorjty sought. Upon motion, the proposed letter was approved, and it was also voted to request the ComPtroller of the Currency to have the examiner, at the tile of the regular examination of the bank, give particular attention to the character of the adninistration being given to the trusts then in the bank, and the rualil'ications and experience of the officer or officers having supervision over that function. Ilbmorandum from Counsel dated 2:arch 25th, on application filed b y 4"4 M. Anderson for permission to serve at the same time as a director of Iheertaan :ational Bank and us an officer and director of the iorthern '4ew y °r4 Trust Company, both of Watertown, New York; the 1:1ederal ::eserve .LIent at 4317/ YbriC recommending approval apparently on the basis of the fact tIlat tie same interests control to some extent the two banks involved; C°11/1seits memorandum submitting draft of letter to the !ederal deserve Agent 1 york, requesting specific information with reference to the extent to 1111111 t4e same or t4 0 re4sons Interests control tie two banks, and a more detailed statenent Why it would not be incompatible with public interests for the c'l to approve the application. Upon motion, the proposed letter was approved. (. 4 3/W6i -4Memorandum from Counsel dated :arch 26th, with regard to an awolication surrender of 300 shares of 2ederal lieserve bank stock, Cued by the Capital Stat javinGs Bank, Chicago, Ill., in accordance with the action taken at the rueetinG of the - oard on December 9, 1930; Counsel stating that in view of the 114et that seven of the nine directors of the bank have signed the application, tiler . e 13 no legal reason why it should not be approved. Upon motion, it was the application filed by Savings Bank of Chicago, the Federal Reserve bank voted to approve the Capital State for surrender of stock held by it. Memorandum from Counsel dated :.:arch 23rd with rer,ard to an application ().tetIrrender of Yederal _ieserve bank stock held by the -irst Rational Bank Opliewton, :_ass., which application was made by the li'midatin'; arTnt of the 1)44k in accordance with a Qeneral resolution adopted by the board of clizectors authori.4inL; certain officers and the liquidating agent to sign all necessari for the linuidation of the bank; Counsel submitting draft letter to the 41'1 .ederal Reserve Agent at Boston, recuesting him to obtain a €IPPlication fran the liouidating agent made pursuant to specific authority 1.1%.11ted 11(1111c1'3 uY the board of directors of the linuidating bank, as renuired by the riegulation I. Upon motion, the proposed letter was aDr)roved. 163/110 randum from Counsel dated March 17th, advising that the Supreme t np, -,, i.,orth Carolina has affirmed the decision of the trial court in the Of Pederal Reserve Bank of Richmond v. Attmore, which has resulted in ,LLelik; tho Case to a simple suit on a ')romissory note and eliminating from u t,7le 0 , —esent at least) all nuestions of interest to the federal Reserve Vtell. k V27/31 -.5The memorandum having been previously circulated among the members of the Board, was noted. Letter dated March 25th from the Assistant Federal Reserve Agent at Chicago, advising of the action taken on January 31, 1931, by the Dearborn State Bank, Dearborn, 1:11ch., in purchasing the assets of the Peoples State lIallks Inkster, Michigan, a nonmember bank, and stating that this purchase will " 4 change materially the character of the assets now held by the member bank °V ths scope of the corporate powers exercised by it at the time of its tidli881°11 to membership in the Federal Reserve System. Upon notion, it was voted to advise the Federal Reserve Agent at Chicago that the Board will interDose no objection to the action of the member bank. Is OliTS OF STAYDING 0012:MITTEES: Uarch 24th 25th Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Linute Book of this date. Recommendations approved. 15ated. March 19th Recommending action on applications for fiduciary Dowers 24th as set forth in the Auxiliary Minute Book of this date. 4,143 Recommendations approved. March 24th Recommending approval of the application of Er. W. T. Kemper, for permission to serve at the same time as a director of the City Bank and Trust Company of Kansas City, Missouri, and as a director of the Fourth National Bank in Wichita, Kansas. kteas „ Approved. warch 24th Recommending approval of the application of Mr. William C. Veit, for peruission to serve at the same time as a director and officer of the Northern Valley National Bank of Tenafly, N. J., and as a director and officer of The Trust Company of New Jersey of Journal Square, Jersey City, N. 7., Approved. The meeting adjourned at 1:00 p. in. ADD Assistant Secretary Member, Executive (4ecutive Cor zmittee) AUXILIAAY MINUTES (Larch 27, 1931.) 48ports of Standing Committee dated March 24th and 25th, recammending cha /lees in stock at Federal lieserve Banks, approved as follows: :"'"(211t4L1iIOj tirst R1.6..i. National Bank in Tonkawa, Oklahoma. Shares 4 4 60 60 240 300 540 36 36 National Bank, Eureka Springs, Ark. (Insolvent) 38 bistrict No. 9. Pi rsi. 38 *--1-1 111p for SURRENDEA of Stock: 441V National Bank, Gary, U. Va. (V.L.Sucs by (zarY National Bank No. 13505) ric f,rst N _itiai.....A.t. ational Bank, Jackson, :rass. (Insolvent) National Bank, Meridian, Miss. (Insolvent) bistrict No. 7. Pirst National Bank, Vernon, Ind. (V.L.Abs. by North Vernon National Bank) ),Istrict 1*irst No. 6* 1/ National Bank, Paynesville, Minn. (V.L.Suc. V First National Bank in Paynesville) 21 D14triot No. 11. zells National B - , Waxahachie, Texas. (V.L.Suc. elt,Y 15 Citizens National Bank in Jaxahachie) 180 2(Ills National Bank, GodleY. (V.L.Abs. pi36r 12Y Texas. eleburne State Ba, nk Cleburne, 2exas.) 18 (V._T National Bans, New Hobbs, New Ilexico. . 44* bY Hobus State Bank) 23 biat . 'eira rlet No. 12* Idaho. (V.L.Abs. Sei I:tisItial3clanrici;y 34 2=11, Total V ti 4ePorts 21 221 34 950 of Standing U ittee dated Larch 19th and 24th, re„cammending - aPPlioations for fiduciary nowers by the following banks: DISTAICT 1:0. 6. " 1 36CU4I: The Union National Bank of Springfield. (Supplementary. Powers 5 to 9, inclusive) I 3/27/31 -2- I/ DISTRICT NO. 9. =TANA: The American National Bank of Helena. (3346) (Powers 1-7, and 9) (Effective if and when The American National Bank is consolidated with the National Bank of !lantana and. the Montana Trust & Savings Bank of Helena, and is authorized to oommence business as the First National Bank & Trust Company of Helena.) Assistant Secretary. APProvea: liember, Exeautive Committee.
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