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A meeting of the Federal Reserve Board was held in the office of the '.€3olera.3. Reserve Board on Wednesday, May 27, 1931, at 11:30 a. In. PRP,SENT: Governor Meyer Mr. Hamlin Mr. Miller Mr. James Mr. Magee Mr. McClelland, Assistant Secretary. The Governor reported that Mr. Hoxton, Federal Reserve Agent at 40401 °111, is in Washington and has discussed with him and some of the other beI'S or the Board, the question of participation by the Federal Reserve bank examination of the Baltimore Trust Company, which is to be made next weel, by State authorities. He said that the request of the Federal Reserve 44ht for the designation of certain employees of the Richmond bank and iktirao , branch as special assistants to examiners was made in order that they ikight 4se1st in a simultaneous examination of the Baltimore Trust Company and lieteen branches, which the Federal Reserve bank considers desirable. He ttiteci that the Maryland Banking Department is not permitted by law to levy an 41ent against state banks sufficient to cover the additional expense to t° a simultaneous examination but that the actual out-of-pocket expense P.A '"eral Reserve bank would not, in the opinion of Mr. Hoxton, amount to thEL4 $250 Which the Federal Reserve bank would like to absorb because of t)1 4et th --at the simultaneous examination is being made at its suggestion. At the conclusion of the discussion which followed, upon motion, it was voted to approve the designation as special assistants to examiners of the thirty employees of the Richmond bank and its Baltimore branch listed in the Federal Reserve Agent's letter of May 22nd and the Assistant Federal Reserve Agent's letter of May 23rd. Tihe minutes of the meetings of the Federal Reserve Board held on 19th and 20th were approved. s/27/31 -2The minutes of the meetings of the Executive Committee of the Federal Re e 1"/1/80erd held on May 21st and 22nd were approved, and, upon motion, the aetiona recorded therein were ratified. The Assistant Secretary then presented various matters which were cotap "zed by the Board and acted upon as follows: 4PPlication of Mr. John V. Hinchliffe, for permission to serve at the t - as director of the National Bank of America and as a director of the Citizenipt -.1-u8t Company, both of Paterson, New Jersey; the Assistant Federal ' ve Agent at New York recommending approval and stating that while the two iktke az 5 to a certain extent natural competitors, Mr. Hinchliffe is not an 4ettve orricer of either institution. Upon motion, it was voted to request the Federal Reserve Agent at New York to furnish the Board with additional information as to why the service of Mr. Hinchliffe on the boards of directors of the two banks concerned is not considered incompatible with the public interest. bYth 6 bleMcrandum dated May 25th from the Chief Telegraph Operator, approved Assistant Secretary, requesting authority to employ a vacation relief tele€a111111 oPerator for the months of July and August, at a salary of $165 1111‘14°Iltii. Upon motion, the authority requested was granted. ' l etter dated May 20th from the Governor of the Federal Reserve Bark of N1,1 11°zIti submitting a tabulation of the short-term indebtedness between l'ork CitY banks and bankers and foreign clients as of April 30, 1931. The letter, having been previously circulated among the members of the Board, was noted. b/27/31 L,r) -.3Report of Committee on Salaries and Expenditures on list submitted by tIA. -2edera1 Reserve Bank of Chicago of employees for whom the directors approved lettveR - of absence with pay, on account of illness, during the period from APtil 2 4th to May 21st where the total of such absences since Tanuary 1, 1931 o ceeded thirty days, the Board's Committee recommending approval. Approved. Matter approved on initials on May 26th, namely, telegram to the hara Reserve Agent at Chicago, advising, in reply to his wire, that the 1148 no objection to his furnishing the President of the Fletcher Trust 45k1144/1 Y of Indianapolis, Indiana, with a copy of a report of the recent oktititut tion of the bank made by examiners of the Federal Reserve Bank, ex- q40 41e confidential sheets. Formally approved. It was also voted to request the Examiner in Charge to secure from the Federal Reserve Agent at Chicago, if readily available, copy of the report of examination above referred to, and to submit a summary thereof to the Board. Matter approved on initials by the Executive Committee on May 25th, II r4PlY to letter dated May 22nd from the Director of the Bureau of ,4 "Illg and Printing, the reply advising that the Federal Reserve Board will no -u Jection to the Bureau carrying over to the month of Ally, any, or all, aAlive e1 ' 434,000 sheets of Federal Reserve notes which were scheduled for cl4ring the month of Tune, the letter further stating that unless Ntz, ' laquested, the schedule of deliveries during Tuly on the 1932 printing ,11 aPProximate 528,000 sheets and that approximately the same amount ac .kbe heduled during the other eleven months of the fiscal year. Formally approved. S/27/31 1 • v -.4- (4••••1 tr. of reply to letter dated May 18th from the Chairman of the $"ede l'sa. Reserve Bank of San Francisco, inquiring whether he is to understand Ila Me Board's letter of May 14th that announcement of a change in the dis°11/It rate at the bank may be made at the close of business on the day on which (teti , ls taken by the directors whether or not advice of approval by the Neral 4" Reserve Board has been received; the proposed reply referring to the tOard, 8 letter of August 22, 1924, (7/f-4140) setting forth rules and regulations announcements of rate changes, which are still in effect, and ad- v18111 that in all cases of a change in the discount rate of the bank, it is tecleas sLrY to defer any announcement until advice of the Board's action is Neive4. After some discussion, the proposed letter was amended and approved. Letter dated May 21st from the Assistant Federal Reserve Agent at zok replying to the Board's letter of ,May 15th requesting further infork40:4 New New Irozas tc) why the business contemplated by the Fiduciary Trust Company of k makes it appropriate that it Should be a member of the Federal Reserve 4'Yateti. derai The atTlication of the Fiduciary Trust Company for membership in the Reeerve System and for 1,200 shares of stock in the Federal Reserve Bank Agilt c)rks on which action was deferred on Kay 15th, was considered in the the Assistant Federal Reserve Agent's letter and generally discussed. At the conclusion of the discussion, the Assistant Secretary was instructed to communicate with the Federal Reserve Agent at New York and request him to advise Mr. Pierre Jay, Chairman of the Fiduciary Trust Company, that the Board would like to have him cone to Washington on Thursday or Friday to discuss the matter with the Board. STA1\DING COMMITTEES: IlaNY 25th 26th Recomnending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Minute Book of this date. Recommendations approved. lut 5/27/31 -5w STANDING COLLITT1i7.1S: (Contfd) kted, 1.147 26th Nhy 26th kted, May 22nd kted,, 41Y 22nd ktea, 1041, 4 22nd btiteci, IlaY 23rd 114Y 25th 4 26th Recommending action on applications for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Recommendations approved. Recomnending action on application for admission of state bank, subject to the conditions stated in the report attached to the application, as set forth in the Auxiliary Minute Book of this date. Recommendation approved. Recommending approval of the application of Mr. George W. Botbyl, for permission to serve at the same time as director of the National Bank of America in Paterson, of Paterson, N. I., and as director of the Clifton Trust Company of Clifton, N. J. Approved. Recommending approval of the application of Mr. R. D. Clark, for permission to serve at the sane time as officer of the Wyoming County National Bank of Warsaw, N. Y., and as director of the First National Bank of Arcade, N. Y. Approved. Recommending approval of the application of Mr. W. J. Peckham, for permission to serve at the same time as officer of the Wyoming County National Bank of Jarsaw, N. Y., as director of the National Bank of Wyoming, Wyoming, Y. Y., and as director of the First NatioDel Bank of Arcade, Arcade, N. Y. Approved. Recommending approval of the application of Mr. Arthur B. Treman, for permission to serve at the same time as director of the Ithaca Trust Company of Ithaca, Y. Y., and as a director of the Tompkins County National Bank of Ithaca, Y.Y. Approved. Recommending approval of the application of Mr. T. rt. McPhee, for permission to serve at the same time as director and officer of the Safety Fund National Bank of Fitchburg, Mass., and as director of the Merchants National Bank of Leominster, Mass. Approved. Recommending approval of the application of Mr. Edwin S. Webster, for permission to serve at the same time as director of the Atlantic National Bank of Boston, Mass., and as director of The Kidder Peabody Trust Company of Boston Mass. Approved. The meeting adjourned at 12:45 p. m. reo Assistant Secretary. IL LLINU-224,3 27, 1931.) Aeports of :,;tandinr: Jorlmittee dated May 25 and 26,.recomm3ndin7 chat , 111 stock at Federal Aeserve Banks,- approved as follows: ' 41, 141.9ns for JiLL-Ci;NDr.,:t of 3tcck: 17441 , 7!re National Bank, Delaware, Ohio. (Vol. bto,'44 1• Sue. by Delaware county National Bank) Night National Bank, 2ikevil1e, N; )r. tV01. Lig, as. by pikeville National Bank) hares; 120 72 1?,2 &triCt 5, can Nationca Bank, Asheville, N. C. (Ill solvent) 150 150 Diatriet No. 6. Cltral National Bank and Trust Company, St, PetersburF7, Fla. (Insolvent) 480 ( t60 60 60 41 41. District No. 7* Cknieraial National 3ara' z]ssex, Iowa. (In solvent) 1)4trict I.:0 9. 4t National Bank, Tracy, Minn. (Insolvent) ? bliatrict No 1 1. rst ational Bark, ...ills point, Tex* (eons. 744 Zarldt County National with the Bank, pt. abOVe bank) *at National Bank, in 1vin, Texas. (Vol. Abs, by Jity National Bank, Galveston, 39 17 'atIlational Bank, Hemphill, 2ex. (Vol. Lig, . . ?ira3 ftl, e• by First National Bank in H Hemphill,, A71:: -"Ilat Ba Bank in Plainview, Tex. (Vol. Lig. Albs -*kT 2lainview National Bank) 30 120 Total 206 1129 a, ilebinli4. -Vgicai'S of jtanding Committee dated May 26, recommending °I1a for fiduciary powers by the following banks: 01/4D: action on - 1622,1G2 NO. 2. 3 The National Bank of destfield, New Jersey. (3352) •••,,,, ENO DISTAIGT NO. 2. (Contld) NI YUK: The Peoples-First National Bank of Hoosick Falls, N. Y. (Confirmatory. Consolidation of The Peoples National Bank and the First National Bank.) DISTANT NO. 6. GE0aGIA: Peoples First National Bank of Quitman, Georgia, (Confirmatory. Consolidation of First National Bank and Peoples National Bank. Powers 1 to 8 inclusive.) ail a ItePort of Standing Committee dated Lay 26th, recommending action on 4011141lication for admission to membership by the following state institulipp sUbject to the conditions stated in the report attached to the icstioa. 44104%4 Name Mercantile Bank and Trust Company, New York, N. Y. (Approved if and. when the company is authorized to begin business and has paid in capital of 4900,000 and surplus of 4600,000.) Shares 900 F. R. Bank New York Assistant Secretary. Itored.;
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