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729 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Monday, May 101 1954. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Martin, Chairman Szymczak Evans VardAmsn Mills Robertson Mr. Carpenter, Secretary Mr. Sherman, Assistant Secretary Minutes of actions taken by the Board of Governors of the Federal Reserve System on May 7, 1954, were approved unanimously. Letter to Mr. G. Roland Price, Vice President, Randallstown Bank, Randallstown, Maryland, reading as follows: Reference is made to your letter of April 29, 1954, regarding the application to establish a branch at Woodmoor, Baltimore County, Maryland and to the provision for an increase in the capital structure of your bank suggested in the Board's letter of April 191 1954. For several years the failure of the capital structure of your bank to keep pace with the growth in deposits and risk assets has been a matter of concern and it appears that this situation has been brought to your attention on various occasions. It was to be expected that steps would be taken to strengthen the bank's capital structure by an adequate amount. When your proposal to adjust the capital by a net increase of $50,000 in new funds was submitted to the Board by the Reserve Bank along with the application to expand your business through the establishment of an additional office it was felt, as indicated in the letter of April 19, 1954, that provision should be made for a larger addition to capital. One of the factors considered by the Board in connection with all applications for branches is the adequacy of capital of the applicant bank, not only with respect to legal requirements but also in relation to volume of business. It is not believed that the additional capital proposed by the Board is unreasonable s case. Approved unanimously. Secretary
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