The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
1356 meeting of the Federal Reserve Board was held in Washington on trida ' ' Y IANY 11, 1934, at 4:15 p. m. PRESENT: Mr. Mr. Mr. Mr. Mr. Black, Governor Hamlin James Thomas Szymczak Mr. Mr. Mr. Mr. Morrill, Secretary Carpenter, Assistant Secretary Bethea, Assistant Secretary Martin, Assistant to the Governor he Board considered and acted upon the following matters: t Letter dated May 10, 1934, from Mr. Sproul, Secretary of the *41*"ese14ve Bank of New York, and telegrams dated May 10, 1934, from kr. m 444118. Secretary of the Federal Reserve Bank of Kansas City, and 11 '1934: from Mr. Hoxton, Chairman of the Federal Reserve Bank of : 41 44414, and Mr. Clark, Secretary of the Federal Reserve Bank of tile4tta.) all advising that, at meetings of the boards of directors on ot Stec a, no chsnges were made in the banks' existing schedules ratea of discount and purchase. Without objection, noted with approval. 14141 Zetter r eceived'under date of May 1, 1934, from Mr. Austin, Chair(It the ye deral Reserve Bank of Philadelphia, and circulated among the Daktbers 1)401 Of the Boardt, advising of the election of Mr. J. B. Henning, ika 4 44 of the Wyoming National Bank of l'unkhannock, Pennsylvania, t4i1 C1488 A director of the Federal Reserve Bank of Philadelphia for t'lred portion of the term ending December 31, 1934, succeeding e. C"Crove, resigned. Noted. 135 5/11N _2Letter and telegram received under date of April 26, 1934, from 14. Stevens, Chairman of the Federal Reserve Bank of Chicago, and circu- leted among the members of the Board, Ovising of the election by the member ba•Itts11Oroup 3 of Mr. Frank D. Williams, Vice President and Cashier of the I'lrst Capital National. Bank of Iowa City, Iowa, as a Class A director of the de ReservA Bank of Chicago for the unexpired rortion of the term ending 4cellber 31, 1935. Noted. Item orandum dated May 5, 1934, from the Committee on Salaries and 2* submitting a letter lated May 1 from Mr. Helm, Deputy 11°r arid Cashier of the Federal Reserve Bank of Kansas City, which reglletea alo,)roval of changes in the personnel classification plan of the 1)kk t°13rovide for the new positions of 'clerk" and "typist-clerk" in the dePartIlierit. The memorandum stated that the committee has reviewed the A() 1)(3sec/ ehanCes and recommends that they be approved. We, The recommenda,- aPPr " ed. by five members of the Board on May 10, 1934. Approved. ttr. Lettels dated leay 4 10, 1934, approved by five members of the Board, lloztor, -, z ederal Reserve Agent at the Federal Reserve Bank of Richect(11 ' as follows. ' .101 zerence is made to the report of examination of the 1/11411re Savings and American Trust Company, Petersburg, ' I ri13:' as of F 0_ ebruary 12, 1934, and to your letter t 1014 :1,1934, regarding the extremely unsatisfactory ondi''llrf, tcl-t : ;",7 bank:. the fact that assetscamountNotwithstanfling a4Iset: '4'29,000, or appro-cimately 25 e -", were Per cent of the entire • ninated in' the reoganization last August, 0;71 5/11/34 -30 report of examination shows estimated losses of $185,000, causing a capital impairment of $100,000, and the examiner questions the ability of the management to work out the situati on, "The Board notes that the report of examination was rriecentlY considered by a group of directors of the bank ! . etinC with your examiners, a State examiner, and Mr. Pry; 4nat agree with the directors of the bank that there is ta 1)0esibility that the bank may be able to collect some of ,:1 1 lines classified as losses and should be able to make ''stantial collections from the old charged-off assets; and that the bank is endeavoring to obtain the services of a 811e baiter and has offered the position to P man who has c notes also that onfidence of the reserve bank. The Board ,at in your opinion the bank can do little at this time to the situation; that you do not think it possible for the &Il bank to live through another reorganization; and that, brs,view of all of the circumstances, your Executive Committee 4'-tieves that the bank should not be required at this time to etr=t a reorganization or make any adjustment in its capital th:,:-vure provided the management is strengthened by obtaining %rvices of a capable man. tion Willie the Board appreciates the difficulties of the situai1.0' the bank cannot be permitted to carry losses in its assets coT:initely and through published reports and statements of prof” .i°n represent to the public that the bank has undivided therl45, surnlus, and unimpaired capital. The Board believes, depref°re, that the bank should charge off or otherwise eliminate c 14 oev, on in stocks and defaulted bonds and determined_ losses '4ieeer assets, and that other estimated losses should likethe be eli-ainated unless the management is able to substantiate %Zention that such assets are good and collectible. eaimb,:rbankt s immediate problem is that of management and to ob:'"Ion of losses, but it is assumed that you. will endeavor rei3ornin correction of the other matters criticized in the del),Z °f examination especially those concerning the trust Z the 1)0 "ls understood that consideration is being given to e a consolidation or merger with the national rt s zf, tl ei '4ti and that you will keep the Board fully ined , -' 'c developments in this case." Approved. Letter ) t0 'The dated May 10, 1934, approved by five members of the Enosburg Falls National Bank", Enosburg Falls, Vermont, tr) 1.359 5/1a/34 'eming -4as follows: The Federal 'Reserve Board approves your application for ?e mission to act, when not in contravention of State or °cal law, as trustee, executor, administrator, guardian of e states, assignee and receiver, the exercise of all such !ights to be subject to the provisions of the Federal Reserve ACt and the regulations of the Federal Reserve Board. tic, This letter will be your authority to exercise the uciarY powers as set forth above. A formal certificate cow.; such authorization will be forwarded to you in due ,-ourss.fl Apnroved. Letter to Mr. Williams, Federal Reserve Agent at the Federal Ref Cleveland, reading as follows: It Reference is made to "r. Fletcher's letter of April 26 810, the Board's letter of April 19, 1934, in regard to the appliuchation of the First National Bank in Greensburg, Greensburg, -J4ven1a, for permission to exercise full fiduciary powers. It is noted that an examination of this bank by the nati blzt 1-4. bank examiner can not be made for at least four months, that it would be possible for you to have your trust examiner ; 1 11 an examinat ion of the tst trust department of the old bank wit_ h: next two weeks. While an examination of the trust department by your rxat,:ler would undoubtedly be of much value in determining the qre of 4.1_ vile trust business available and its acceptability the, in question-ew b ank, the Board is particularly concerned withdepartment the arld, : - f ma nagement and supervision, both of the trust b-fle bank 104p est be as a whole and feels that this question is one which after the new bank has been in operation as so that an examination would afford concrete evidence "'Ile manner in which it is being operated. cisfer In this connection it may be stated that the Board, in lalltil%" action upon the bank's application for trust powerstook into c;:'ter an examination of the institution has been made, factor,r-nsideration the fact that the bank was a2parently in satiscondition, the assets acquired by it at the time of its IlleBoatli°11 having been approved by the Comptroller's office. was pr-'''s action, as indicated in its letter of .Aril 19, 1934, viziolledicated 1 ,rgely upon the question of management and super, -a ClIcialin view of the comments and criticisms relating to the 44a tor bi ,74-12ersonnel which were made by the supervisory authorities, beli.,ew of the very unsatisfactory condition of the predeces" which resulted in the organization of the present 1360 5/11/34 -5Institution and the waiver of 50:, of the unsecured deposits of the i°,41- bank'. The management of the old bank continues in charge of the , One, and one of the reasons for deferring action upon the apoliT r ew ' a' a ion when first submitted was with a view to determining, so far ss 'QV be possible at the time of its first examination, whether ill ne4 management is conducting the operations of the new institution t-; r 2, sate and conservative manner. Consideration was also given thewle criticisms of the trust department of the old bank, and to involved financial condition of the proposed trust officer, ;10e.latter raising a question of doubt as to his fitness for that sltiii°11 even tho-ugh he may be Toni ified in other respects. The Board sees no objection to your having an examination raade 0 , the trust department of the old bank at your convenience, as the 1: information which would be developed thereby would be sufficientb;tellrrent at the time of the next examination of the bank itself nation.al bank examiners for consideration in connection thereHowever, unless the management of the bank has been strengthened ti llsatisfactory information can be developed in regard to the operapos_ of the b ank, iI n and. also in regard to the acceptability of the proof trust officer for that position when considered in the light wiiir Board's letter of April 19, 1934, the Board would not be t0 chance its previous decision to defer action upon the pendexaze3)J-icat1on until the bank has been examined by the national Ilers and, a report of such examination is available." Approved. dated May 10, 1934, approved by five members of the Board, to Itts. goYtori 441irtp. p ederal Reserve Agent at the Federal Reserve Bank of RichTaond., "f011 ows. "YO e1e1 Inasmuch as Union National Bank, Lenoir 1Torth "ae complied. with condition imposed in connection with rnal l)e.„Thef flal trust powers, bank may qualify as fiduciary. For' ra-Lt vrill be forwarded in due course." Cal*CairlpIL 1,t Approved. to Letter dated May 10, 1934, approved by five members of the Board, Itr* St cNeriz p tte4i ecleral Reserve Agent at the Federal Reserve Bank of Chicago, tle at -calows: II The trZederei ti01' Reserve Board has again considered the an:plica4-"e rational Bank of Savanna' , Savanna, Illinois, for 1361 5/11/34 -6Permission to exercise full fiduciary powers uncler the provisions °f Section 11(k) of the Federal Reserve Act. "In view of the information contained in the report of extamination of Marcl, 26, 1934, and. that previously submitted in connec1°11 with this application, and the adverse recommendation of yourceOlf and your executive committee, in which the Comptroller of the c111 : renoY concurs, the Board is unwilling to approve the bank's applivi e'ion for fiduciary powers. You are requested, therefore, to adse The National Bank of Savanna that the Board has denied its aPPlication. "The Board will be glail to consider another application from the , t e Slibiect bank whenever its condition, management and need for powers are such that you and. your executive committee would willing to submit it with a favorable recommendation." Approved. to Letter dated May 10, 1934, approved by five members of the Board, tile rst National Bank in Santa Ana", Santa Ana, California, reading 841 tqlows: the :Reference deference is mule to the application filed by you through Reserve Agent at the Federal Reserve Bank of San pro t eisco, for permission to exercise fiduciary powers under the —8 1ii°n8 of Section 11(k) of the Federal Reserve Act. a4a, auni v_e . Federal Reserve Board has considered this application D ' rlzes State your bank to act, when not in contravention of tr - or local law, as trustee, executor, administrator, regis :f stocks and bonds, guardian of coraratc estates, assignee, receiver, eapac;:ee of estates of lunatics, or in any other fiduciary tiori -.till which State banks, trust companies or other corporatts ed; 1 come into competition with national banks are Derthe ° act under the laws of the State of California, only sPecific trusts in which The First National Bank of Santa tilearInt • Ana, California had been appointed and was acting thp ; ate the First National Bank in Santa Ana was authorized eXerei Ptroller of the Currency to commence business, the eclertileb°f such powers to be subject to the provisions of the :°4 ' A e_ serve Act and the regulations of the Federal Reserve ';411.1ei ' tion has been deferred upon your application for full ;!°33. forY)2°wers until after the institution has been in operaleast one year ent a report of examination made subtrb liTh'° that period has been received. -Sts 6 ikard feels that, if you are tendered. any of the 4110114 " 4 held 1, -Y The First National Bank of Santa Ana, you ca'r'LL1Y scrutinize their condition and should not ! -7j accept any of such trusts which, through their assumption may pe detrimental to the interest of your institution." Approved. Letter to Mr. O'Connor, Comptroller of the Currency, rending as "In accordance with your recommendation, the Federal Resell/t 01„ e Board approves a reduction in the common capital stock ,17he Farmers National Bank of Amsterdam', Amsterdam, New from $500,000 to $300,000, pursuant to an amended plan 02.ch provides that the bank's capital shall be increased by ,000 of preferred stock to be sold to the Reconstruction t,f-rice Corporation and/or others, and that the released capi- shall be used to reduce the book value of the bond account, set forth in your supplemental memorandum of May 2, Z Approved. 1 01,1:tter dated May 10, 19 ,-t, annroved by five members of the Board, 011flor, Comptroller of the Currency, reading as follows: 1., accordance with your recommendation, the Federal Reserv "In Of tll e 'card approves a reduction in the common capital stock 111irst National Bank of Panal, Pana, Illinois, from $75,0, t° $50,000, pursuant to an amended plan which provides ferr,,,;"e bank's canital shall be increased by $25,000 of pretiot' stock to be sold to the Reconstruction Finance CorporaillItlat.and that the released capital shall be used to eliminate azia. tlsfac o n tory assets n in the amount of approximately $19,300 mat 1 i-croase the surplus in the amount of approxibank's 1 e Y (5 ,yr, A.9 0t,Il '‘u0, all as set forth in your memorandum of May 2, to Lettp,. olc Approved. A u.ated !!ay 10, 1934, al:. ,proved by four members of the Board, °1111°r, C omptroller of the Currency, reading as follows: %Ire 80 11 accordance with your recommendation, the Federal ReThear3Droves a reduction in the common capital stock 00 "clglac ' Dowagiac, Michigan, from t t2A „National Bank, r--,'AXO, Pursuant to a plan which provides that the 1363 5/11/3,1 -8"bnro capital shall be increased by $25,000 of preferred stock ; 0 be sold to the Reconstruction Finance Corporation, that the resased capital and a portion of the bank's surplus and undivided shall be used to eliminate unsatisfactory assets, and $10,000 shall be raised locally to eliminate additional unsfactory assets and maintain the bank's surplus at $10,000, set forth in your memorandum of April 30, 1934." Approved. to !4r. Letter dated May 10, 1934, approved by five members of the Board, u Connor, Comptroller of the Currency, reading as follows: (oarelnIn accordance with your recommendation, the Federal eserve Zsrst oves a reduction in the common capital stock of 'The ..on Zal Bank of Logan', Logan, Iowa, from $50,000 to tal'°°0' -pursuant to a plan which provides that the bank's capito jhall be increased by $25,000 of preferred stock to be sold caiptij Finance Corporation, and that the released , 8 11.a11 be used to eliminate unsatisfactory assets, all as zet .1. ' - uLL in Your memorandum of May 2, 1934." Approved. Lett er to Mr. O'Connor, Comptroller of the Currency, reading as toliowz. )3oard"In accordance with your recommendation, the Federal Reserve ?,13Prc3ves a reduction in the common canital stock of e q2sion"°•tional Bank of Ogden', Ogden, Iowa, from $50,00 to ellaill'IYursuant to a Plan which provides that the bank's capital lp sqa 4.-e in creased by $1.5,:.00 of Class 'Al preferred stock to e e13tihe Reconstruction Finance Corporati,In and $10,000 of !her Prefe 'Ed stock to be sold to local interests, and that ""Iceolalat--sed capital, together with the bank's undivided profits boar4I a $6,000 voluntary contribution to be raised locally, "4e balit 'used to eliminate unsatisfactory assets, and to increase surplus to $10,000, all as set forth in your ur memorandum °f1ley' 1934.1I Apnroved. Lette , r dated 114Y 10, 1934, approved by four members of the Board, 13r"11, Secretary of the North Carolina Bankers Association, 5/11/34 -9North Carolina, reading as follows: "Receipt is acknowledged, of your letter of February 26, 1934, in .4.1, regard to the difference between the Board's Regulation Q, and :"e regulations of the Federal De-oosit Insurance Corporation in respect to the calculation of interest on deposits. b "Under the law the Federal Reserve Board is required to limit bY regulation the rate of interest which may be paid by member wia. 11.1-ks on time deposits and is authorized to prescribe the rate ?1.11: 1 ell may be paid by such banks on time and savings deposits. tilesp tiant to the responsibility thus imposed upon it by the statute, 14,,orinaiederal. Reserve Board, after a careful study of the subject, gated its Regulation c, which contains the provision that /10 member bank shall pay interest on any time or savings deposit — a rate in alin excess of 3 per cent per annum, compounded semicorrollallY, regardless of the basis upon which such interest may be 1teci 1 • Accordingly, no member bank of the Federal Reserve 1481, --""aoligh it is a member of the Temporary Federal Deposit at a --ndt may pay interest on any time or savings deposit a.— 4:ate in excess of 3 Der cent Der annum, compounded semiid, therefore, no such bank may pay interest compounded at le sser intervals than six months if the amount of interest so eet°1T113(311/1(led exceeds the amount of interest which would be payable rate of 3 per cent per annum, compounded. semiannually. You , 1., the serye that it is provided in Section 4 of Regulation C of latioe ' eral Deposit Insurance Corporation that neither that reguir aertl ket;iie i or dreergai alnded Regulation B of the Corporation is intended to rement or imnose any restriction as to member banks Reserve System inconsistent with any regulation conOf interest payable by such member banks and that Regulation Reetil Federal Reserve Board is in no manner affected by such a lt`ii°n C or amended Regulation B of the Corporation. iAg of ae Provision of Regulation Q, with respect to the corrtpownaFeaeraiinterest has recently been carefully considered by the resjiir .Reserve Board and it is the Board's conclusion that the °A aa,:rnerlt in eatIonQ, that no member bank shall pay interest Per -v eallitime or savings derosit 'at a rate in excess of 3 per cent "n1.1,-)ouncled semiannually' should not be modified in an:7 b-' s° abbCs time. However, the provisions of this regulation are ' eser;e 85 e to any bank which is not a member of the Federal lAtp ter Chest which and, accordingly, they do not affect the rate of may be e paid on time or savings deposits by a bank nos. eraber a member of the System, whether or not such bank is liThel the Temporary Federal Deposit Insurance Fund. the P.atir ede n,,alet :, ., „ der po al siR tes inu.s Reserve ve Bod Board has called to the attention of rance Corporation the fact that the Pear :Zs of the latter, which relate to nonmember banks of --"4- Reserve System whose deposits are insured under Section 1365 5/11/34 -10"12B of the Federal Reserve Act, differ from the regulations of the Federal Reserve Board, which are applicable to member banks, !ith respect to the minimum period for the compounding of Interest at the rate of 3 per cent per annum." Approved. Letter to Mr. Stevens, Chairman of the Federal Reserve Bank of C}iic readlng • as follows: , The Board has reviewed the report of examination of the ' cec,'eral Reserve Bank of Chicago as of February 10, 1934, copies which were left with you and Governor Schaller. "The examiner comments in considerable detail (page 12) reclinC; the indebtedness to the Reserve Bank of the Old Merchan ts i tlIc)nal Bank and Trust Company, Battle Creek, Michigan, an unnsed bank, the difficulty experienced in attempting to appraise : glj of the collateral held to secure the line, because of inadeam e credit data, the many technical exceptions to the collateral, co,the Passive attitude assumed by the aeserve Bank toward the neJ•J•ection of the paper held as collateral to the bank's indebtedliastsi,Dendirls,* attempts to effect a reorganization of the Old Merchants I:413;1141 Bank and Trust Company. The examiner recommended that, latt;s5 the bank be reorganized by March 31, 1934, or unless definite coils for a reorganization shortly thereafter be approved, a vigorous the (7P,icm Policy be adooted in connection with the indebtedness of wolliA 4. 1 Merchants National Bank and Trust Company, and the Board ' az w;aaPPreciate information as to the present status of the line, reconr 1 as advise as to the steps taken in view of the examiner's 4 r Diece,it has been noted (nage 25) that the bank has title to four slIz13e114°1 real estate acauire d in connection with claims against charge(r" banks whose liabilities to the reserve bank have been cllided Off; that the carrying value of the real estate is insuch the total of collateral still being held on account of a's; and that the net income or ex:dense on such properties reseri7:sferred annually to profit and loss account through the if : yoi for losses on discounted bills. It will be appreciated advise the Board whether these properties have been a.% ecc--red to , e tl byi account 'Other Real Estate—Otherwise Acquired', 00Z1eaded the examiner. ! Ilfrici2ege 25 attention has been called to the fact that a 40tr,„ '4" 7 nunlber of audits of several departments of the bank were a d • 114itz uring the year 1933. It is noted that the number of such de zit) ccordanc departments during the year 1934 will, be increased wo e with the recommendation of the examiner and the like to be advised as to whether an adequate program 13C6 -1 1"has been adopted for the year 191 with respect to the audit of ' 11 departments. "Under the schedule 'Pending St'its' (page 44) reference is mMe to a subpoena served on the Reserve Bank on February 23, 1934, in the case of Walter Berg et a vs. Federal Reserve Bank ( ! ) v Chicago, Vim. Taylor, Chief National Bank Examiner, et al. is noted that counsel for the Reserve Bank has requested the of the United States District Court to forward a copy of eoTrolaint in order that the exact nature of the case may be ascertained and the Board would an-oreciate advice as to the n'ature and present status of the suit. "It has been noted (pages 66 are. 145) that securities are bei-11€: held. in safekeeping at both the Head. Office and its Branch ! .1;;) the account 0±' receivers of various closed banks, and it will apPreciated if you will advise the Board as to the nature of tit safekeeoing accounts. In this connection, the Board feels while there is no objection to retaining the securities tj1in safel-reeoinp at the time of susoension of a member bank he receiver has had an opportunity to make other arrangeflew deposits of securities should not be accepted_. ch "Attention has been called (page 100) to the fact that no s4oZge is made for examinations of State member banks. The inctioris for the assessment of the cost of examinations of State member banks as set forth in the Board's letter of July 26, ana LX-6665, do not appear to have been followed in all respects :i.01.1x4-'' Will be appreciated if you will, advise the Board as to piresent policy in regard thereto. expwa3 The examiner comments (page 24) on the difficulty which erienced in reconciling the total of securities held as by the Reconstruction Finance Corporation - Custodian it 1.1,71°11, 1 with the controls established on such securities, due, 'rtaints4 been noted, to the inadeauate and. cumbersome control reeorra'"Iled- The Board. is -oleased to note that the examiner's that "-ndation will be adopted and. that a control similar to ntained on securities held in safekeeping by the bank Filialacue installed on securities held by the Reconstruction youe Cerooation ,- Custodian Division. It will be appreciated staile2713-1 advise the Board if such a control has now been inThe examiner refers (rage 122) to the inad.eouate and Ilrelichs°rae control maintained on securities held at the Detroit a. subcollateral for account of the Reconstruction Finance , C°1"1)orat sat ' The Board would also like to be advised whether a ado-pted 1S actory method of maintaining such a control has been n it 2 recommended by the examiner. tion flaha's been reported, that the operations of the Reconstrucivs.e liot bee Corporation - Custodian Division at the Head Office een cond.ucted, in an entirely satisfactory manner and -iat p exanThle, numerous releases and substitutions of 11367 5/11/34 -12- II collateral had not been made in accordance with the instructions Of the Corporation. It is understood that this entire situation was discussed by the examiner with the Controller of the bank, the Board would appreciate advice as to the steps which have peen taken to effect the necessary corrections in the operation, as well as in the supervision of the department. "After the report and this letter have received the considers3°n of the board of directors of the Federal Reserve Bank, the would appreciate advice from you as to what action has been tucen or will be taken on the matters discussed." Approved. Memorandum dated May 11, 1934, from Mr. Smead, Chief of the DIV& si°11 of Bank Operations, stating that after discussing with the %Ire% 411°1', other members of the Board, and Under Secretary of the Treasury C°°liage the recommendation contained in a memorandum submitted by him , 111141. dllte of 404 May 9, 1934, that, beginning with the statement of condi- of Pederal reserve banks as of May 9, 1934, the $100,000,000 stabilizati, ew fund deposit of the Goverment in the Federal Reserve Bank of be included in "Other deposits" instead of with Government 8) -' was decided to charge the word "Government" appearing under 't„ 81 8 .."‘”' the Board's weekly statement to "United States Treasurer - Ace°1121", and to add a footnote to the caption as changed reads follows: "CaPti - -on changed from 'Government' to 'United States reas er General Account' and $100,000,000 incluAed tn d Government deposits on May 2 transferred to 'Other sPoeito." verball rallclum stated also that the change in the statement was approved by members of the Board and by Under Secretary of the Treasury 4344 1111* Bell, Commissioner of Accounts and Deposits of the :1368 -13TrIllrY, in nddition to which the statement was initialed by Mr. Coolitlge a ". Bell before it was released to the press. The informal action taken by the members of the Board was ratified. Lettda May 10, 1934, approved by five members of the Board, to !hi 17alsh, Federal Reserve Agent at the Federal Reserve Bank of Dallas, reat li te as follows: "This refers to your letter of April 9, 1934, reporting ;;ce!sible violations of the provisions of Section 22(g) of the ;,'eral Reserve Act by Messrs. A. Y. Bell, Manzer and Terry, "4ce President, Cashier and Assistant Cashier, respectively, th: Wellington State Bank, Wellington, Texas. vol It has been noted that, in view of the small amounts inac, vi_°(1, you. have reported these matters to the Board for advice .ti.jo whether they should be reported to the local United States f; 3rneY, in accordance with the suggestion contained in my letter O ,:fj a c11 28, 1934. In this connection, it appears that the officers abcves who are described as being active in the affairs of tte "a-1174, have habitually overdrawn their accounts in small amounts lc,ci, . tilat in the case of the cashier, his overdraft had been on the matZer of the bank for twelve days. In the circumstances, these Staters have been reported to the Attorney General of the United cmese ts fc/r such action as he considers advisable and you are reAtto,,ed t° raakea similar retort to the local United States iz i; lleY. A copy of the letter addressed to the Attorney General closed herewith for your further information." Approved. Letters to the following applicants for permits under section 32 tile Banking Act of 1933; each letter stating that it appears that the oll relatishi'o covered by the application is within the class which section 32 clesined to terminate. and that, accordingly, the Board is unable to 411(1 t ilat it would not be incompatible with the nubile interest as declared bY coileress to grant the annlication, although in the event the applici zires i:ubmit further facts or arguments in support of the aplAica- Prepared to give them careful consideration: rs• ) 5/11/34 -14- 11r. John W. Cutler, for permission to serve at the same time f;e a director of the Grace National Bank and as a partner of 4dward B. Smith & Co., both of New York, New York. Mr. Jansen Noyes, for permission to serve at the same time a a director of the Montclair Trust Company, Montclair, New , ersV, as a director of the Chemical Bank and Trust Company, rt, York, New York, and as a partner of Hemphill, Noyes & Co., vew York, New York. 3 AJ)proved. Letter dated May 10, 1934, approved by four members of the Board, E11)-plicaut for a permit under the Clayton Act, advising of approval aly0 _lication as follows: 14r. L. Stoner, for permission to serve at the same time a director and officer of The Farmers and Mechanics National 0; 12,1c of Frederick, Frederick, Maryland, as P director and Ita;icer of The First National Bank of Mount Airy, Mount Airy, Fr and as a director of the Woodsboro Savings Bank of euerick County, Woodsboro, Maryland. Approved. or Letters to apilicants for permits under the Clayton Act, advising 'Plproval Of their applications as follows: Ilr• N. IQ_ a direct -Vas, for permission to serve at the same time as ica:n or of the , Security National Bank of Kansas City, haTisae,"ditY, Kanqas, and as a director of the Victory State " 4al1sas City, Kansas. '•• Gp.0, 1 as ' se Gra,7 to serve at the same time '4 directo•forpermission r of the Security National Bank of Kansas vieW si..vitZ.f, Kansas, as a director and officer o a Bank, Kansas City, Kansas, and as a director an 'ffic' ate el '°I the Victory State Bank, Kansas City, Kansas. 'W. Lee -. vcIlldhan, for permission to serve at the same time as a di rector of the Security National Bank of Kansas City, \rictor2r.itY, Kansas, and as a director and officer of the " otate Bank, Kansas City, Kansas. Approved. 370 were then presented the following applications for original of ederal reserve banks: or ORIGINAL Stock: Shares Bank in Revere, achusetts 72 72 Mars, 47 Total 47 119 Approved. Thereupon the mee ned. Secre ax7.
@FedFRASER