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533
A meeting of the Board of Governors of the Federal Reserve System
was held in Washin
gton on Saturday, March 7, 1956, at 11:30 a. m.
PRESENT:

Mr.
Mr.
Mr.
Mr.
Mr.

Eccles, Chairman
Szymczak
McKee
Ransom
Morrison

Mr. Bethea, Assistant Secretary
Mr. Carpenter, Assistant Secretary
Consideration was given to each of the matters hereinafter re—
ferred to and
the action stated with respect thereto was taken by the
Board:
Letter to Mr. Curtiss, Federal Reserve Agent at the Federal Re—
serve Bank of
Boston, reading as follows:
"Receipt is acknowledged of Mr. Gettemy's letter of
February 24, 1936, with regard to a subscription to stock
in the Federa
l Reserve Bank of Boston by The Peoples
National Bank of Clarem
ont, Claremont, New Hampshire.
"Mr. Gettemy referred to the footnote on the Board's
F
13:1:which reads as follows: 'If six per cent of the
capital and surplus, including reserve for divi—
dends payable in
common stock, amounts to a sum not
divisible by 100, the bank is required to hold one
additional share of stock for any excess or fractional
Part of el00.'
It appears that six per cent of the com—
bined capital and
surplus of The Peoples National Bank of
Claremont
amounts to $16,000.0002, and that, on the basis
carrying the computation to the fourth decimal, the
bank has applie
d for 161 shares of Federal Reserve bank
stock. Mr.
Gettem
y has requested advice as to whether the
,
1r,.nk is
justified in carrying the computation to the fourth
',;scimal in determining the basis of its subscription to
Federal Reserve bank
stock.
"While the carrying of the computation to the fourth
decimal, in order to
determine whether the bank is entitled
an additi
onal share of Federal Reserve bank stock on
e basis of 'any excess or fractional part of $100' would
permit the bank
to subscribe for an additional share of
on a very small
fraction of $100, the Board has no
Objecti
jectio
on
n to the issuance of the additional share on such

th




534
3/7/36
"basis if the bank so desires. Accordingly, the Board
knows of no reason why you sliould not approve the application which has been made
by The Peoples National Bank of
Claremont for 161 shares of Federal Reserve bank stock."
Approved unanimously.
Letter to Mr. Thomas, Federal Reserve Agent at the Federal Reserve
Bank of
Kansas City, reading as follows:
"Reference is made to Mr. McAdams' letter of FebruarY 11 in which he
recommends that the Hutchinson State
Bank, Hutchinson,
Kansas, not be required to publish the
report, as of December 31, 1935, of its affiliate, the
Hutchinson Oil and Gas Company. He states in his letter
that the bank
was apparently unaware of the existence of
this
affiliation until it was called to its attention at
the time of the
examination of the bank January 18, 1936,
the
affiliation existing by virtue of the fact that three
Of the five
directors of the Hutchinson Oil and Gas
Company were also directors of the bank. He also states
that
subsequently the affiliation has been terminated by
an
utchinson additional director to the Board of the
Oil and Gas Company so that it is no longer
rue that a
'tors of the majority of the company's directors are direcbank. Under the circumstances it appears that
no good purpose
would be served by publication of the report of the
Hutchinson Oil and Gas Company at this time."
Approved unanimously.
Letter to the Federal reserve agents at all Federal reserve
banks ,
rsnsmitting forms and
instructions in connection with the next
Call for
condition reports of State member banks. The form of report was
t1PProved by
the Board on February 10, 1956.
Approved unanimously.
Letter to the Federal
reserve agents at all Federal reserve banks,
I‘eading as follows:




535
3/7/36

7

"In vier of the provisions of the Banking Act of 1955,
it will be necess
ary to amend the plates from which Federal
Reserve bank stock certificates are printed in order to make
Provision for the signature of the President or a VicePresident of the Federal Reserve bank in lieu of the signature
of the Governor. In the circumstance
s, the form of certificates issued by the Federa Reserve banks has been examined
l
with the view of determ
ining whether any other changes should
be made at the
same time.
'The form of certificate not used at eight of the Federal
Reserve banks is identical except for the name of the Federal
Reserve bank and district, which changes are made in a single
Plate at the Bureau
of Engraving and Printing without the
requirement of a plate for each of the banks. The certificate
in use at one bank
differs from that in use at the majority
of banks
only in that it provides for the signature of the
Secretary' instead of the 'Cashier'. The certificates in
use at two
other banks differ from the one in use at the
majority of banks in that the words 'paid up' are used
instead of 'paid' in referr
ing to the 50 percent payment on
the par value,
etc., and the phrase 'and is liable to
further assessments aggreg
ating not more than 50 percent of
its par
value' is omitted. The certificate of one of these
banks provides for
the signature of the Secretary and the
Other for the
signature of the Cashier. The remaining bank
isEues non-negotiab
le receipts in lieu of stock certificates.
"The differences in the form of certificates now issued
by the Federal
Reserve banks are not of major importance and
it appears to
the Board that a uniform certificate might well
be adopted. It also appear
s to the Board that it should be
sufficient to have the certif
icates signed by the President
or a Vice-President and by the
Secretary, instead of also
!
squiring the countersignature of the Federal Reserve agent,
since Federal
Reserve bank stock is not transferable and
Cannot be
hypoth
ecated and the certificate is merely formal
evidence that
the member bank has made the required payment
subscription to Federal Reserve bank stock. The
Board would
like to have any comments that your bank may
to make on
these proposals, together with suggestions
for
uFyaddi
to
tional changes that may appear desirable. In
expedite consideration of the matter, there is
osed a draft of
a proposed revised form of certificate.
It will
he noted that the revised form provides for the
!Inature of the
First Vice-President, but when the certites are prepar
ed this title may be changed as desired
by t
he,individl Reserve banks (without making separate
Plates)
Furthermore, even if the title 'First Vice-




536
// 6

-4-

"President, appears on all of the certificates, the word
'First* can be stricken out when the certificate is signed
by another Vice-President and the rords 'First' and 'Vice'
can be stricken
out when it is signed by the President.
"Please advise the Board of the number of unissued
certificates
that you now have on hand and approximately
hOW long the
supply may be expected to last. If a uniform
form of certificate
is decided upon it will be desirable
to cancel
the existing supply of certificates and to issue
certificates
only on the new form. Please, therefore, also
advise the Board of the number of certificates of the revised form that should be ordered, together with the serial
numbers to be shown thereon."
Approved unanimously.

Thereupon the meeting adjourned.

Assistant Secretary.

App

ved:




Chairman.