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:157
A meeting of the Federal Reserve Board was held in the office of the
Psderal Reserve Board on
Tuesday, March 31, 1931, at 11:45 a.
PiihSENT:
•
PRESENT ALSO:
1106
Governor Meyer
Mr. Hamlin
Mr. Miller
Mr. James
Mr. Pole
Mr. McClelland, Assistant Secretary.
Mr. Stevens, Chairman of the Federal Reserve Bank of Chicago.
Ur. Stevens referred briefly to the bankin- situation in Detroit
4411 exPressed the
opinion that it has been fairly well cleared up as a reaillt or developments during the last few weeks.
1
,-,
He stated, however, that
46154rticularly wished to discuss with the Board the banking situation in
the .4
-'ate of Michigan as a whole, which is complicated by the fact that
11114
"state law
state institutions are required to segregate their savings
4ekleit8 and
to invest approximately 60 per cent of these accounts in
ttgages or
real estate bonds. These investments of banks throughout the
8t
"
81 he r
eported, are largely based on Detroit real estate, there is no
411*:et for the
securities at the present time, and many bond issues are in
' He pointed out that if depreciation and losses on these issues
4444
Ilete c44res3, off, capital impairments would result in many cases, requiring
:Icier4ti021 by the Federal Reserve bank of the question of continuance of
ibIllI13111.13 in the
Federal Reserve System.
During the discussion which ensued, it
appeared to be the consensus of opinion that
in dealing with situations of the kind referred
to, considerable weight should be attached to
the attitude of the management of the individual banks, and progress being made in
each case in bringing about an improvement
in conditions.
3/31/31
The Board then discussed with Mr. Stevens the recommendation of the
4eout1ve Committee of the Federal Reserve Bank of Chicago that the Board
ellt full trust powers to the National Bank and Trust Company, Chariton,
411e, which was granted limited Dowers on April 18, 1930, at the time of
itB n,....'
- 46a
niZatiOn to succeed the Chariton and Lucas County Nationnl Bank and
theLtIcas County Trust and Savings Bank.
The comments of the National Bank
tktkilliner regarding the necessity for an improvement in the management of the
and a more active collection policy in connection with a deficiency
4°16- .411cell over from the old national bank, were particularly discussed.
At the conclusion of the discussion,
upon motion, it was voted that action
on the question of granting full powers
to the bank be deferred until after the
next examination.
At this point Hr. Stevens left the meeting.
The minutes of the meeting of the Federal Reserve Board held on
4toh D1
'St, having previously been circulated among the members of the Board,
1454 4PProved.
The minutes of the meeting of the Executive Committee held on March
7th
Were aPProved, and upon motion, the actions recorded therein were
tetitiea
l'he Assistant Secretary then presented various matters of business
thiwa
Wet° considered by the Board and acted upon as set out below:
Letter
datbd March 28th from the Federal Reserve Agent at the Federal
. verve t
014141t
41
YI Bea
,
Itiqe4
t4
4 k of Dallas, advising that the Security State Bank and Trust
-44iont, Texas, has transferred the sum of 26,000 from its un-
9 °fits account to a special account entitled "Reserve for increase
) this action
being taken to comply with a condition of membership
'
fit
3/31/31
::159
-3-
1t4"
.1 ed upon the member bank at the time of its admission to the Federal
lizaerve System.
Noted.
Draft of letter to the Federal Reserve Agent at Atlanta, prepared in
"cordance :ith action tron at the meetinr yesterday, with reference to the
recNest of
the Thrmers and :,:erchants Bank of :atonton, (leorr;ia, that the
11Q4rd waive the usual re,luirerent of six months' notice and permit immediate
11.1bIldrawal from membership by the bank.
Approved.
l'emoraladum dated :larch 31st from the Board's Examiner in Charge,
it r
eference to 354 shares of its own stock still held by the Citizens
11811k and Trust Co,
opany, Savannah, Georgia, out of 1,000 shares originally
I
I
te
'
411 in 1922,
as collateral to the linuidation account of the :ercantile
1\14tiozal
Bank of Savannah, Georgia.
After discussion, upon motion, the
Assistant Secretary was directed to prepare
and submit to the Board draft of a letter
to the Federal Reserve Agent regarding the
above natter.
4E110,
''TS
°V
JL, \
ST"IMITTG
4teq_;
11.rh
31st
* I "eh 30th
"
Recommendins
, action on an application for fiduciary powers
as set forth in the Auxiliary Minute Book of this date.
Recoiwaendation approved.
Recommending approval of the application of Ir. Ernest
Crist, for Permission to serve at the same time as an
officer of the Mellon National Bank of Pittsburgh, Penn.,
as a director of the iheraden Bank of Pittsburgh, Penn.,
and ao. a director of the City Deposit Bank (''r, Trust Company,
Pittsburh, Penn.
Approved.
The meeting adjourned at 12:55 p.
V6
7i7,0
Assistant Secretary
AUXILI1-uiff MINUTES
('arch 31, 1931.)
of Standing Committee dated March 30th, recommending action on
411 a Report
.
Pplication for fiduciary powers by the following bank:
41.13.11i0z1D
DISTAICT NO. 1.
ZgLi]ClZicaZi.
The National Bank of Commerce of New London.
(Supplementary. Powers 6, 7 and 8)
Assistant Secretary.
@FedFRASER